(a) Prior to entering into a contract for research or development or both which provides for the acquisition or construction by, or furnishing to, the contractor of research, development, or test facilities and equipment, the Secretary of the Army must determine that the facilities and equipment are necessary for the performance of the contract (10 U.S.C. 2353). Authority to approve such requests has been delegated to the ASA(ALT). See 5101.707.
(b) Each request for Secretarial determination must be sent through to the addressee in 5101.290(b)(24 and contain:
(1) A detailed description of the acquisition supporting a finding that the contract is for research or development or both.
(2) The contract type and funds to be used.
(3) Property or services to be acquired.
(4) Name of potential contractor.
(5) Any urgency considerations.
(6) A description of the research, development or test facilities and associated equipment and specialized housing which are to be acquired or constructed by the contractor or furnished to the contractor by the Government. Include the estimated cost of the property to be provided by the contractor or the Government and the reasons this property is necessary for the performance of the contract.
(7) When the Government will furnish property to the contractor, an explanation of how it will be provided, e.g., loan, lease, sale, or other. When reimbursement will be sought under a lease or sale, provide the fair market value that will be charged to the contractor.
(8) Details concerning ownership of land on which the facilities or equipment are to be located, e.g., Government owned, private, etc.
(9) Details concerning whether the facilities to be installed or constructed are removable or separable without unreasonable expense or unreasonable loss of value.
(10) In the case of facilities that will be installed or constructed on property not owned by the United States, and that are not removable or separable without unreasonable expense or unreasonable loss of value, describe the provisions to be included in the contract for -
(i) Reimbursing the United States for the fair value of the facilities at the completion or termination of the contract or within a reasonable time thereafter;
(ii) An option for the United States to acquire the underlying land; or
(iii) An alternative provision considered adequate to protect the interests of the United States in the facilities and an explanation of why it is adequate.
