(A) The property administrator must request the contractor to furnish the following at least 120 days prior to contract completion:
(1) A listing of all Government property required to support contractual follow-on requirements or other known requirements, including spares and mobilization readiness requirements. This listing shall identify the category, quantity, and acquisition cost of such property, i.e., IPE, 0PE, ST, STE, agency-peculiar property, and material.
(2) Justification for retention of any Government property not currently in use (see FAR 45.102(f)).
(B) Upon receipt of the contractor’s submission, the property administrator must:
(1) Review and verify the contractor’s stated Government property requirements, with assistance from other technical specialists when required.
(2) Forward a copy of the contractor’s follow-on contract requirements list and retention justification statement, together with findings and recommendation, to the contracting officer.
(C) Final decisions with respect to transfer of Government property to follow-on contracts shall be made by the contracting officer within 90 days after receipt of the contractor’s list and justification statement. If transfer approval or other disposition instructions have not been received by the end of the 90-day period, the property administrator shall issue a follow-up which states:
“Your failure to respond within 30 calendar days of the date of this follow-up inquiry will be interpreted to mean that the Government property in question should be disposed of in accordance with FAR 45.603.”
(D) Authorized transfer of Government property to a follow-on contract shall be accomplished by contract modifications which delete the property from the completed contract and incorporate it in the follow-on contract. The modifications shall include a list of the type, quantity and acquisition cost of property being transferred.
(E) The property administrator and the ACO should be sure that all property being transferred has been provided by the Government or acquired by the contractor under an appropriate contract type, i.e., facilities normally should be provided or acquired under a facilities contract as required by FAR 45.302-2 and 45.302-3. If facilities were provided to or acquired by the contractor improperly, the ACO shall notify the Procuring Contracting Officer (PCO) and request the execution of a facilities contract or a contract modification incorporating the property in an existing facilities contract. When warranted, the ACO shall initiate action to recoup inappropriate fees or profits paid when facilities were provided to or acquired by the contractor improperly.
