As prescribed in 5311.390(a), insert the following provision, substantially as written, in Section M:
EVALUATION OF USED AND/OR OVERHAULED SURPLUS MATERIAL (AFMC) (OCT 2008)
For the purpose of price evaluation when comparing proposed prices for used and/or overhauled material with new material, the following shall be added to the proposed price for used and/or overhauled surplus material:
(a) The Government cost incurred, if any, by the equipment specialist/engineer to inspect the used and/or overhauled surplus material for acceptability/serviceability.
(b) A percentage factor, if appropriate, of the lowest proposed price for new material, if fully justified by the equipment specialist/engineer, in consideration of reduced service life, reliability, and/or surplus condition. If the necessity for such percentage factor addition becomes known during negotiations, the percentage to be added shall be made known in writing to the offeror(s) at the time final proposal revisions are requested. Such amount shall then be added to the proposed price for such material.
(c) If the items are unserviceable, the estimated cost for any Government rework, repair, modification, reconditioning or overhaul from the provision at 5352.211-9020, "Evaluation of Items Requiring Reconditioning, Modification, Repair or Overhaul by the Government." After the addition of the foregoing, the resulting sum shall be directly compared to the lowest proposed price for new material. This provision applies to (insert contract line item(s)).
(End of provision)
