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  • Question

    By what federal acquisition authority can a contracting officer inter into a bailment agreement with a contractor. I'm searching for regulatory guidance to support bailment agreements.


    Answer

    In the Defense Acquisition Federal Regulations, under Procedures, Guidance and Information, 217-75061-103.8 defines:

    Bailment:

    The process whereby a part is loaned to a recipient with the agreement that the part will be returned at an appointed time. The government retains legal title to such material even though the borrowing organization has possession during the stated period.
     
     
    You should review the DoD Instruction, 4140.57, dtd 30 May 2008 on DoD Replenishment Parts Purchase or Borrow Program which will provide procedures and guidance on bailment.  It is recommended that you contact your legal department as well.  Lastly there is a more information and a sample bailment agreement posted on the DAU website at https://dap.dau.mil/aap/pages/qdetails.aspx?cgiSubjectAreaID=22&cgiQuestionID=106294

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