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DSCR

DSCR I217A: SPECIAL TOOLING

I217A     52.245-17      SPECIAL TOOLING (DEVIATION)    (APR 1984)
AND
I45A17
                      
    (a)  Definition.  "Special tooling" means jigs, dies, fixtures,
molds, patterns, taps, gauges, other equipment and manufacturing
aids, all components of these items, and replacement of these
items, that are of such a specialized nature that without
substantial modification or alteration their use is limited to
the development or production of particular supplies or parts
thereof or performing particular services.  It does not include
material, special test equipment, facilities (except foundations
and similar improvements necessary for installing special
tooling), general or special machine tools, or similar capital
items.  Special tooling, for the purpose of this clause; does
not include any it em acquired by the Contractor before the 
effective date of this contract, or replacement of such 
items, whether or not altered or adapted for use in 
performing this contract, or items specifically excluded by 
the Schedule of this contract.

    (b)  Use of special tooling.  The Contractor agrees to use
the special tooling only in performing this contract or as
otherwise approved by the Contracting Officer.

    (c)  Initial list of special tooling.  If the Contracting 
Officer so requests, the Contractor shall furnish the Government
an initial list of all special tooling acquired or manufactured
by the Contractor for performing this contract (but see paragraph
(d) for tooling that has become obsolete).  The list shall
specify the nomenclature, tool number, related product part number
(or service performed), and unit or group cost of the special
tooling.  The list shall be furnished within 60 days after
delivery of the first production end item under this contract
unless a later date is prescribed.

    (d)  Changes in design.  Changes in the design or 
specifications of the end items being produced under this contract
may affect the interchangeability of end item parts.  In such an
event, unless otherwise agreed to by the Contracting Officer, the
Contractor shall notify the Contracting Officer of any part not
interchangeable with a new or superseding part.  Pending
disposition instructions, such usable tooling shall be retained
and maintained by the Contractor.

    (e)  Contractor's offer to retain special tooling.  The 
Contractor may indicate a desire to retain certain items of 
special tooling at the time it furnishes a list or notification
pursuant to paragraphs (c) (d), or (h) of this clause.  The
Contractor shall furnish a written offer designating those items
that it wishes to retain by specifically listing the items or by
listing the particular products, parts, or services for which the
items were used or designed.  The offer shall be made on one of 
the following bases:

         (1)  An amount shall be offered for retention of the 
items free of any Government interest.  This amount should 
ordinarily not be less than the current fair value of the items,
considering among other things, the value of the items to the
Contractor for use in future work.

         (2)  Retention may be requested for a limited period 
of time and under terms as may be agreed to by the Government 
and the Contractor.  This temporary retention is subject to 
final disposition pursuant to paragraph (i) of this clause.

    (f)  Property control records.  The Contractor shall maintain
adequate property control records of all special tooling in
accordance with its normal industrial practice.  The records shall
be made available for Government inspection at all reasonable 
times.  To the extent practicable, the Contractor shall identify
all special tooling subject to this clause with an appropriate
stamp, tag, or other mark.

    (g)  Maintenance.  The Contractor shall take all reasonable
steps necessary to maintain the identity and existing condition 
of usable items of special tooling from the date such items are 
no longer needed by the Contractor until final disposition under 
paragraph (i) of this clause.  These maintenance requirements do 
not apply to those items designated by the Contracting Officer 
for disposal as scrap or identified as of no further interest 
to the Government under paragraph (i) (4) of this clause.  The 
Contractor is not required to keep unneeded items of special 
tooling in place.

    (h)  Final list off special tooling.  When all or a 
substantial part of the work under this contract is completed or 
terminated, the Contractor shall furnish the Contracting Officer
a final list of special tooling with the same information as 
required for the initial list under paragraph (c) of this clause.
The final list shall include all items not previously reported
under paragraph (c).  The Contracting Officer may provide a 
written waiver of this requirement or grant an extension.  The
requirement may be extended until the completion of this contract 
together with the completion of other contracts and subcontracts 
authorizing the use of the special tooling under paragraph (b) of 
this clause.  Special tooling that has become obsolete as a result 
of changes in design or specification need not be reported 
except as provided for in paragraph (d).

    (i)  Disposition instructions.  The Contracting Officer shall 
provide the Contractor with disposition instructions for special 
tooling identified in a list or notice submitted under paragraphs 
(c), (d), or (h) of this clause.  The instructions shall be 
provided within 90 days of receipt of the list or notice, unless 
the period is extended by mutual agreement.  The Contracting 
Officer may direct disposition by any of the methods listed in 
subparagraphs (1) through (4) of this paragraph, or a combination 
of such methods.  Any failure of the Contracting Officer to 
provide specific instructions within the 90 day period shall be 
construed as direction under subparagraph (i)(3).

         (1)  The Contracting Officer shall give the 
Contractor a list specifying the products, parts, or services 
for which the Government may require special tooling and 
request the Contractor to transfer title (to the extent not 
previously transferred under any other clause of this 
contract) and deliver to the Government all usable items of 
special tooling that were designed for or used in the 
production or performance of such products, parts, or 
services and that were on hand when such production or 
performance ceased.

         (2)  The Contracting Officer may accept or reject 
any offer made by the Contractor under paragraph (e) of this 
clause to retain items of special tooling or may request 
further negotiation of the offer.  The Contractor agrees to 
enter into the negotiations in good faith.  The net proceeds 
from the Contracting Officer's acceptance of the Contractor's 
retention offer shall either be deducted from amounts due the 
Contractor under this contract or shall be otherwise paid to 
the Government as directed by the Contracting Officer.

         (3)  The Contracting Officer may direct the Contractor 
to sell, or dispose of as scrap, for the account of the 
Government, any special tooling reported by the Contractor 
under this clause.  The net proceeds of all sales shall either 
be deducted from amounts due the Contractor under this 
contract or shall be otherwise paid to the Government as 
directed by the Contracting Officer.  To the extent that the 
Contractor incurs any costs occasioned by compliance with such 
directions, for which it is not otherwise compensated, the 
contract price shall be equitably adjusted in accordance with 
the Changes clause of this contract.

         (4)  The Contracting Officer may furnish the Contractor 
with a statement disclaiming further Government interest or 
rights in any of the special tooling listed.

    (j)  Storage or shipment.  The Contractor shall promptly 
transfer to the Government title to the special tooling 
specified by the Contracting Officer and arrange for either 
the shipment or the storage of such tooling in accordance 
with the final disposition instructions in subparagraph 
(i)(1) of this clause.  Tooling to be shipped shall be 
properly packaged, packed, and marked in accordance with the 
directions of the Contracting Officer.  Tooling to be stored 
shall be stored pursuant to a storage agreement between the 
Government and the Contractor, and as directed by the 
Contracting Officer.  Tooling shipped or stored shall be 
accompanied by operation sheets or other appropriate data 
necessary to show the manufacturing operations or processes 
for which the items were used or designed.  To the extent 
that the Contractor incurs costs for authorized storage or 
shipment under this paragraph and not otherwise compensated 
for, the contract price shall be equitably adjusted in 
accordance with the Changes clause of this contract.

    (k)  Subcontract provisions.  In order to perform this 
contract, the Contractor may place subcontracts (including 
purchase orders) involving the use of special tooling.  If 
the full cost of the tooling is charged to those 
subcontracts, the Contractor agrees to include in the 
subcontracts appropriate provisions to obtain Government 
rights comparable to the rights of the Government under this 
clause (unless the contractor and the Contracting Officer 
agree that such rights are not of substantial interest to the 
Government).  The Contractor agrees to exercise such rights 
for the benefit of the Government as directed by the 
Contracting Officer.