As prescribed in 45.106(95) insert the following clause:
GOVERNMENT-FURNISHED MATERIAL (GFM) (BAILMENT SYSTEM) AND PROPERTY ADMINISTRATION
(Jul 2008) - DLAD
[Limitations on applicability of certain sections of this clause for Webbing or Tape or Short
Pieces, are as follows:
1. When webbing or tape is issued as GFM for equipment items, the first sentence of
subparagraph 2(a)(3); and subparagraph 2(a)(4) are not applicable to the acquisition.
2. When the solicitation provides up to 100% of total allowance for short pieces, the first
sentence of subparagraph (a)(3) is not applicable to the acquisition.]
(a) Material to be Made Available by the Government:
(1) The Government will make available to the Contractor, for use in connection with and under the terms of this contract, the materials set forth below (hereinafter referred to as Government material), and the Contractor shall utilize such materials in the furnishing of supplies or services hereunder. The Government reserves the right to furnish such cloth put up either in rolls or folded, whenever such cloth is 46 inches wide or narrower. Cloth more than 46 inches wide will be furnished put up on rolls. The Government shall be the sole source of the supply of the materials listed herein and only such material obtained from the Government under this contract may be used in the performance of this contract. Price for cloth is based on gross yardage with no allowance for imperfections. Material furnished shall be charged to the Contractor's account in multiples of one yard. Where material furnished contains fractions of a yard, the yardage shall be rounded to the whole yard. Fractions of less than one-half yard will be rounded to the next lower full yard; fractions of one-half yard or more will be rounded to the next higher full yard, e.g., 159 1/4 yards shall be rounded to 159 yards; 159 1/2 yards shall be rounded to 160.
(2) the offeror shall determine the quantity of Government material it will require in the performance of the contract and shall include the value of such material in its offered price(s). To calculate the value of the Government material, the offeror shall multiply the quantity of Government material it will require per unit by the unit price of the material set forth in paragraph (a)(1) of this clause.
(3) The Government reserves the right to make available not more than 10% of the material in short pieces. The Contractor shall cut and use short pieces furnished and/or generated and not retain them for return to the Government at completion of the contract. Only the types of materials listed above will be made available to the Contractor by the Government. All other types of materials required in the performance of this contract shall be furnished by the Contractor.
(4) The Government may furnish material in widths other than those specified herein. Where such other widths are furnished, the quantity thereof shall be converted to the mathematical equivalent in linear yards of the width specified and the value of the material furnished and returned will be determined accordingly. It is expressly agreed that this method of adjustment shall be exclusive. It is further agreed that regardless of widths furnished, the Government material shall not be deemed deficient or defective within the meaning of (k) below.
OR
(APPLICABLE FOR THE FOLLOWING ITEMS ONLY):
Tent Liners; Cover, Maintenance, Frame Supported; Fly, Tent; Screen, Latrine; Windbreaker, Flexible Material; Shelter Half, Tent; Cover, Tent (Various Type Tents and Sizes); all Paulins, except: Paulin, Ctn. Duck, or Wind Measuring Set, Paulin Ctn. Duck 20 ft. x 20 ft., Paulin, Laminated, Vinyl-Nylon, flexible; all Tents, except: Tent, Air-Supported, Launcher, Hawk System; Tent, Nike-Hercules, Air-Supported; Tent, Pyramidal, 3-4 Man Type; Tent, Radome, Air-Supported; Tent, Mountain, 2-Man.
(4) The Government may furnish material in widths other than those specified herein. When the width furnished differs from the specified width by more than plus or minus 2 inches, the Contractor shall be entitled to an equitable adjustment in accordance with paragraph (k) herein if such substituted width causes increased performance costs; provided, however, that no equitable adjustment shall be allowed unless the 5-day and 30-day notices in paragraph (k)(2) and (k)(3) shall first have been given as provided therein. Notwithstanding the foregoing, for administration of the Government material account, where widths other than those specified are furnished, the quantity thereof shall be converted to the mathematical equivalent in linear yards of the width specified and the value of the material furnished and returned will be determined accordingly.
(5) In the event the Government makes the material available at locations other than those specified above, or requires the return of the material to a location other than specified above, freight adjustment(s) shall be made in the same manner as prescribed in the Changes clause specified in the solicitation/contract. No adjustment of less than $50.00 will be made pursuant to this paragraph.
(b) Property Account Number: The property account number is the contract number. Consolidated records are not authorized. The Contractor shall maintain separate records for each contract.
(c) Contractor's Request for Government Material: It shall be the responsibility of the Contractor to request its requirements of the Government material, pursuant to the provisions of this clause, in sufficient time to comply with the delivery schedule of the contract. In the event that the Contractor requests Government material in excessive quantities, the contracting officer may, at his or her discretion and prior to release of any such excessive Government material, require the Contractor to submit such evidence as the contracting officer may deem adequate to support the Contractor's request for such material. When submission of such evidence is required, the Contractor shall also provide a copy of the same to the assigned property administrator located at the cognizant Defense Contract Management Agency (DCMA) Office. Failure of the Contractor to furnish such evidence when required shall justify the contracting officer in refusing to grant the Contractor's request for such Government material. When the request for excessive Government material is approved, the value of that material shall be withheld from subsequent payments due the Contractor under this or any other contract pending final adjustment at completion of contract performance (see paragraph (e) of this clause).
(d) Availability of Government Material: For each required delivery of material, the Contractor shall submit a properly executed original DSCP Form 1786, Prime Contractor's request for Government material, to the Commander, Defense Supply Center Philadelphia, 700 Robbins Avenue, Bldg 6-1-D, Philadelphia, PA 19111-5092, ATTN: Material Accountability Section, Directorate of Clothing & Textiles, DSCP-FQCA. The Contractor shall also provide an informational copy of each request for material to the cognizant DCMA property administrator. The Contractor shall be solely responsible for making transportation arrangements for the pickup and delivery of this material, using its own truck, or a leased or rental carrier. These arrangements shall be specified by the Contractor on the DSCP Form 1786. The Government material will be available for pickup not later than 21 calendar days after receipt of the original DSCP Form 1786 by the Government. The Contractor and the cognizant DCMA property administrator will be furnished copies of DSCP FL 504, Government-furnished Material Information, which will indicate the availability date of the Government material. On or after this date, such material may be picked up at the location specified above. Prior to pickup, the Contractor shall contact the storage location to coordinate the exact date for pickup and provide the name of the motor carrier to be used. If such pickup is not made within 10 calendar days after the availability date specified on DSCP FL 504, or the actual date the Government material becomes available, whichever date is later, the Government reserves the right to return the Government material to storage, unless a revised date for its pickup has been requested by the Contractor. If the Contractor later requires this Government material which has been returned to storage, submission of a new DSCP Form 1786 will be required. The Government will not be liable for any additional expense, delay, or loss incurred by the Contractor as a result of the aforementioned action being accomplished. All material picked up at the location specified will be made available at the shipping platform. Loading into the vehicle will be the responsibility of the Contractor or its representative. Delivery of the Government material shall be deemed to be accomplished when the material has been picked up by the Contractor, or its authorized representative.
(e) Payment: Upon delivery of end items, $____ per unit will be deducted from the contract price and applied to cover the value of the Government material. (This is an administratively determined rate to be offset against the value of the Government material furnished the Contractor, and should not be used by the offeror to determine its material requirements on which to base its offer price.) The balance of the contract price, less discounts computed on the basis of the amount remaining payable, shall be paid to the Contractor. The Contractor shall bill at the contract unit price, and shall also reflect deduction for the administratively determined rate per unit. Subsequent to final delivery, the Government shall issue a unilateral modification to the contract for the purpose of adjusting and finalizing the Government material account. Adjustments to the account shall be made as follows:
(1) if the total amount deducted from the contract price to cover the value of the Government material exceeds the value of all such material furnished the Contractor, the Contractor shall receive payment of the excess amount; or,
(2) if the total value of the Government material furnished the Contractor exceeds the amount deducted from the contract price to cover the value of the Government material, the Contractor shall reimburse the Government for the value of such material for which sufficient deductions were not taken. Regardless of the amount of Government material consumed, the unit cost to the Government of each item accepted including Government material shall not exceed the contract unit price for the item. (See notice requirements contained in paragraphs (k)(2) and (k)(3) below.) Should the Contractor take exception to any portion of the data contained in the modification, such exception, with supporting data, must be presented in writing to the contracting officer within 30 calendar days of the Contractor's receipt of the modification in order to be considered.
(f) Value of Government Material Furnished Contractor: To determine the total value of Government material furnished the Contractor, the Contractor will be charged for the total value of material furnished at unit prices stated in (a) above less $______ per rejected end item purchased by the Contractor and will receive credit at the unit price specified in (a) above for Government material unconsumed and returned by him in an undamaged condition to the Government.
(g) Contractor Inventory:
(1) Irreparable rejects: The Contractor agrees to purchase any or all irreparable rejects when notified in writing by the contracting officer, or its duly authorized representative, at $_______ per unit. An irreparable item shall be defined as an item that is physically unable to be repaired.
(2) Scraps and Ends: Disposal of scrap and ends will be the responsibility of the successful offeror. In computing the price offered, the offeror agrees it has taken into consideration the anticipated net proceeds, if any, of the sale of scrap and ends at the estimated market price at time of sale based on a projection of the current market price in the locality at which any contract awarded to it will be performed. The offeror further agrees that the price quoted by it on the items covered by this solicitation reflects consideration of anticipated receipt, if any, from the sale of scrap and ends.
(3) Return or Disposition of Other Government Material:
(i) All Government material other than irreparable rejects, scraps and ends, will be returned to the Government at the Contractor's expense, or disposed of by the Contractor as otherwise directed by the contracting officer within 30 days after completion of deliveries.
(ii) In the event original pieces furnished by the Government cannot be used, and are being returned, the shipment will consist of original put-ups, with their original piece tickets attached, packed as specified in the applicable fabric specification. If short pieces generated by the Contractor during manufacture of the end item are being returned, these short pieces will be separately packed and identified and tagged with a piece ticket. Where a portion of material in a container is used, and short pieces are generated, this material will be packed separately from full-length pieces, and the container will be clearly marked "Short Pieces" followed by the length range of the contents. Each length range will be packed and marked separately. The Contractor shall provide to the Quality Assurance Representative (QAR) a listing of the contents of each return shipment including the following information for each roll:
(A) Roll number
(B) Condition Code ("A" for full length or "C" for short pieces)
(C) Put-up (original package or Contractor repackaged)
(D) Yards
A copy of the listing will be packed with the return shipment. The shipment will consist of a copy of the above listing, a QAR release statement, original or Contractor put-ups.
(iii) The Contractor may request transfer of Government material from one contract to another provided the Contractor will:
(A) Prepare a written request for transfer. The request must:
1. Specify the PIIN (award number) of each contract involved in the transfer.
2. Clearly identify the material involved. Cite NSN/item description, width, and any other characteristics such as short pieces and full pieces. Cite the quantity of each item of Government material being transferred.
(B) Submit the request for transfer to Material Accountability Section, Defense Supply Center Philadelphia, ATTN: DSCP-FQCA with copies to the contracting officer, QAR, and DCMA property administrator.
(C) Maintain proper accountability records by PIIN.
(D) Return all remaining Government material from completed contracts, other than that material being transferred, in accordance with the provisions of paragraphs (g)(3)(i) and (g)(3)(ii) above.
(h) Definitions:
(1) Full Length Pieces: Single continuous pieces, full width, of the length specified as the minimum in the fabric specification.
(2) Short Pieces: Single continuous pieces, full width, less than a full length piece, but not less than 10 yards in the case of frieze (heavy woolen fabric with long, shaggy knap) and pile fabrics, not less than 18 yards in the case of woolens and worsteds, and not less than 20 yards in the case of all other fabrics.
(3) Ends: Single pieces, full width, less than short length pieces, but not less than 1-1/2 yards in the case of woolens, frieze and pile fabrics, and not less than 5 yards in the case of all other fabrics.
(4) Scraps: Includes clippings, remnants, cutting parts and cut parts;
(i) Clippings: Residue from cutting operations not large enough to be re-cut into smaller component parts.
(ii) Remnants: All pieces of cloth up to but not including 1-1/2 yards in the case of woolens, frieze and pile fabrics, and up to but not including 5 yards in length in the case of all other fabrics.
(iii) Cut Parts: Cut component parts not assembled or partially assembled.
(iv) Cutting Parts: Pieces of cloth of irregular widths, lengths and shapes, less than full width from which a square of cloth of at least nine inches by nine inches can be cut.
(i) Purpose of Government Material: The Contractor warrants that any material obtained from the Government is required for use in connection with the supplies or services to be furnished under this contract.
(j) Responsibility for Government Material: The Contractor assumes the risk of, and is responsible, for any loss or damage to Government material from the time the material is delivered to the carrier at the originating location to the time it is re-delivered by the Contractor to the Government.
(k) Deficiency or Delay in Furnishing Government Material:
(1) In the event the Government material is not available for delivery to the Contractor (as in (d) above), the contracting officer shall, if requested by the Contractor, make a determination of the delay occasioned the Contractor thereby. If the Contractor does not make such request of the contracting officer within 7 days after the 21 days allowed for the Government to make the material available (paragraph (d) above) no equitable adjustment will be made to delivery or performance dates, or the contract price.
(2) In the event the Contractor believes that damaged, defective, or incorrect Government material has been furnished, EXCLUSIVE OF THE DEFICIENCIES ALLOWED BY THE ACCEPTABLE QUALITY LIMITS OF THE APPLICABLE FABRIC SPECIFICATION, or in the event of shortages, either within individual pieces or the entire shipment, narrow widths, or other discrepancies, the Contractor shall immediately examine the material in question, thoroughly document the type, location and extent of the deficiencies being alleged. For the determination of alleged defective Government material for excessive visual defects, the Contractor's examination of the Government material shall be in strict accordance with the quality assurance provisions for the fabric, including random sampling procedures and, as applicable, FED-STD-4 or MIL-STD-655 and the applicable Sears slub (i.e. knot in yarn) and knot gauges. The Contractor shall inspect and use fabric as it is opened and shall set aside higher point count (metric for assessing fabric defects) rolls for return as either "excess" or "defective" goods. Over-point count fabric set aside prior to cutting by the Contractor shall be returned to the shipment in question prior to random sampling. Upon completion of the examination, the Contractor shall immediately provide the QAR and the cognizant DCMA property administrator with a written notification of the alleged deficiencies, including the findings of its own examination of the material using a cloth perch (machine which allows unrolling/rerolling of fabric to search for defects). As a minimum, the Contractor shall provide the following data:
(i) Type of material
(ii) Nature of nonconformance (including examination report of alleged defective point count)
(iii) Number of rolls or pieces in shipment
(iv) Name of manufacturer of material
(v) Contract number(s) of material
(vi) Lot identification of material
(vii) Total number of yards in shipment
(viii) Acceptable Quality Limits (or Acceptable Quality level (AQL), if applicable)
(ix) Number of rolls or yardage in sample
(x) Acceptance number
(xi) Recommended disposition
The Contractor shall promptly provide the QAR access to a cloth perch, which the QAR will use to examine the material in question. The QAR shall verify the damage, defect, shortage, narrow width, or discrepancy as documented in the Contractor's notification, and will report the findings of the verification to the contracting officer and cognizant DCMA property administrator. NOTE: THE QAR'S EXAMINATION OF ALLEGEDLY DEFICIENT MATERIAL WILL BE LIMITED TO VERIFYING THOSE DEFICIENCIES SET FORTH IN THE NOTIFICATION AND EXAMINATION REPORT PROVIDED BY THE CONTRACTOR. In the absence of the Government QAR, the Contractor shall immediately so notify the contracting officer of the damage, defect, shortage, narrow width, or discrepancy. The Contractor shall not cut or use such Government material, or in the event the damage, defect, shortage, narrow width or discrepancy is such that it could not reasonably have been discovered until after cutting or further processing, the Contractor shall not further process such Government material pending instructions from the contracting officer. If replacement is to be made, the Government shall effect the replacement at its own expense, including transportation costs. When the return of the GFM is authorized, the Contractor will ship it in accordance with paragraph (g)(3)(ii) and include a copy of the Contractor's notification of deficiencies (including examination report) and the QAR's deficiency verification (DLA Form 506, and DLA Form 499 or 504). If the Contractor fails to notify either the cognizant Government QAR or the contracting officer within 5 days of discovery of any damage, defect, shortage, narrow width or discrepancy in the Government material, no equitable adjustment will be made in the delivery or performance dates or the contract price.
(3) In cases of delay or failure to furnish any of the duly requested Government material or in cases where the Government has furnished damaged, defective, short, narrow width, or other discrepancies in the material, the contracting officer, upon written request of the Contractor, shall equitably adjust the delivery or performance date, or the contract price or both and any other contractual provisions effected thereby, in accordance with FAR 52.243-1, Changes-Fixed-Price. If the Contractor does not request such an adjustment within 30 days from the time the Contractor either knew or should have known of any such delay or failure to furnish duly requested material, or shortage within the piece, narrow width or other discrepancy in the Government material furnished, no adjustment will be made. Under no circumstances shall the Government include as an element of any adjustment under this clause any amount for loss of prospective profits. Further, the foregoing provisions for adjustment are exclusive, and the Government shall not be liable to suit for breach of contract by reason of any delay or failure to furnish Government material to the Contractor.
(4) In no event may the Contractor assert a defense against assessment of additional monies due under (e) above, nor shall the Contractor claim refund of monies deducted under said paragraph on the ground of shortages, narrow width, or other discrepancies in the Government material unless the 5-day and the 30-day notices in paragraphs (k)(2) and (k)(3) above shall first have been given as provided therein.
(5) Cloth containing deficiencies considered acceptable in accordance with applicable specifications shall not be considered defective. Any claim for shortage within the roll shall be adjusted as follows: For shortage on individual pieces only, credit will be taken by the Government for the minus tolerance provided for individual pieces in the "Examination for Length" paragraph of the fabric specification; for the entire shipment, the Government will reduce the total shortage by the total overage on all pieces in the shipment found to be longer than the length specified on the piece ticket. Narrow widths shall be subject to adjustment only where the discrepancy exceeds 1/4 inch. Measurement shall be "overall" or "exclusive of selvage (i.e. non-fraying woven edge)," in accordance with the width provision of the applicable fabric specification.
(l) Protection of Government Material, Title, Access: The Contractor shall establish and maintain a program for the use, maintenance, repair, protection and preservation of Government property in accordance with sound industrial practice and the applicable provisions of Subpart 45.5 of the FAR, with the exceptions noted in paragraphs (b), (c) and (p) and with the exception that Government property shall be physically segregated from the Contractor’s own property. The Contractor shall arrange and maintain its plant(s) to insure clean and sanitary conditions and insure proper identification and segregation of material for each Government contract. Title to the Government material shall remain with the Government and shall not be affected by the incorporation or attachment thereof to any property not owned by the Government. The Government shall at all reasonable times have access to the premises wherein any Government material is located. Additionally, the following requirements shall be adhered to with respect to broad woven and knitted fabrics. Original piece tickets and wrapping shall remain intact until material is spread for cutting. Material shall be stored dry and away from heat and shall not be exposed to weather. Rolls shall not stand on end at any time, nor be cross stacked and under excessive load. If necessary, rolls shall be placed on side-supported pallets with no more than 4 tiers of rolls per pallet.
(m) Retention of Essential Records: The Contractor shall retain the original Government piece tickets on the pieces until spread for cutting. The Contractor shall also retain in its possession for a period of 12 months subsequent to completion of performance of this contract, all piece tickets removed from Government material. The Contractor shall assemble all piece tickets from a particular lay in one bundle, and all bundles shall be consecutively numbered so as to indicate the order in which the lays were cut. All piece tickets retained by the Contractor shall be returned to the Government upon the Government's request. In addition, the Contractor shall retain cutting records and any fallout records for each lay (section) for the above stated 12-month period. The Contractor shall retain the documentation specified in this paragraph in addition to the basic information required by FAR 45.505-1.
(n) Settlement of Length Discrepancies: The length marked on the piece tickets of cloth made available as Government material reflects the measurement metered during preparation for delivery of the cloth, using mechanical measuring devices. An inherent disparity exists between these measurements and cutting table measurements, because the latter are subject to many variables that cannot be controlled. Accordingly, claims for shortages based on cutting table measurements will be considered for allowance only when the shortage on an individual piece exceeds 3-1/2% of the length marked on the piece ticket. All other claims for shortages shall be based on measurements using a mechanical measuring device (calibrated in accordance with the current edition of MIL-STD-45662, Calibration System requirements) activated positively by direct contact, with the fabric in continuous motion. These measurements can be determined by using such devices as true meter, length counter on cloth perch, or similar devices. Length measurements shall be in units of 1/8 yard and multiples thereof.
(o) Final Shipment Notice and Contractor's Representative: Simultaneous with release of the final shipment, the Contractor shall provide information copies of the final shipping document to the cognizant DCMA property administrator and to the Material Accountability Section, Defense Supply Center Philadelphia, ATTN: DSCP-FQCA. The representation reads as follows: "It is represented that, with respect to the type(s) of material which the contract provides shall be furnished solely by the Government, all material of said type(s) used in the performance of this contract was furnished by the Government for the performance of this contract; that property furnished by the Government under this contract has been returned to the designated depot(s) or installation(s) and/or disposed of or transferred as authorized by the contracting officer, or its authorized representative, in the form of finished articles, or otherwise; and that this representation is made with full knowledge and understanding of the penalty imposed by Section 1001, Title 18, U.S. Code, for so representing falsely." The cognizant DCMA property administrator shall monitor the Contractor's adherence to the time frames specified for the disposition of excess Government material (paragraph (g)(3)) and for the execution of the above referenced representation. In the event the Contractor fails to comply with these time frames, the Government reserves the right to initiate the final adjustment to the Contractor's Government material account based on the data contained in the Government's official property record.
(p) Records of Government Property: Notwithstanding (m) above, the Defense Supply Center Philadelphia will maintain the Government's official Government property records for the Government material provided. The requirements of FAR 45.505(c) are hereby made applicable to the Contractor’s property records in lieu of the official Government property records. The recording of pricing information shall be maintained as part of the Contractor’s property records.
(q) Discounts: Unless otherwise stipulated by the Contractor and agreed to by the Government, prompt payment discounts will be computed on the basis of the balance of the contract price remaining payable after deduction of the administratively determined rate per unit (which is applied to cover the value of the Government material furnished) as specified in paragraph (e), above.
(r) Diversions of Shipment: Diversions of shipment shall be made in accordance with the provisions of the Changes clause specified in the solicitation/contract. When Government material is furnished under this clause and the end item destination and storage location for the Government material were originally located in the same geographical area, a freight adjustment shall be made when the diversion precludes the Contractor from picking up the Government material by its own or leased trucks upon delivery of end items. The price adjustment for such shipment shall be based on the difference between the transportation costs of end item shipment to the new destination and one-half the transportation costs of the end item shipment to the old destination.
(End of Clause)
