As prescribed in 45.106(102) insert the following clause:
GOVERNMENT-FURNISHED MATERIAL - NIB and NISH (Jul 2008) -DLAD
(a) The Government shall furnish the materials listed herein (hereinafter referred to as Government Material), in accordance with the allowance set forth below. The Government shall be the sole source of supply of materials listed below and only such materials obtained from the Government under this contract may be used. Price for cloth is based on gross yardage with no allowance for imperfections.
TYPE OF MATERIAL PRICE ALLOWANCE PER UNIT VALUE OF ALLOWANCE PER UNIT
(b) The award prices shall not include the value of the Government-furnished material.
(c) The Government reserves the right to furnish not more than 10% of the material in short pieces. Further, the Government may furnish material in widths other than specified herein. The quantity 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. This method of adjustment shall be exclusive and no other adjustment will be made because of the failure to furnish the width specified above.
(d) CONTRACTOR'S REQUEST FOR GOVERNMENT MATERIAL. Upon award, the Contractor shall request the Government material in sufficient time to comply with the delivery schedule of the contract. The Government material shall be delivered 21 days after receipt by the Government of a properly executed "Prime Contractor's Request for Government Material," DPSC Form 1786 (original only), to the Commander, Defense Supply Center Philadelphia, 700 Robbins Avenue, Philadelphia, PA 19111-5092, Attn: Government-furnished Material Section, DSCP-FQCA-1. Copies of this form may be obtained from the aforementioned addressee. Such material shall be shipped at Government expense to the F.O.B. point for Government-furnished Material as defined below.
(e) F.O.B. POINT FOR GOVERNMENT-FURNISHED MATERIAL. F.O.B. Point for Government-furnished Material is defined to mean that the Contractor is responsible for unloading, receiving, and receipting for the material from the carrier's vehicle, wharf, or freight station specified by the Government, provided that the Contractor will not be required to bear any costs which exceed the costs of acceptance of the material from the railroad cars in the same or nearest city having rail service. The Contractor shall nevertheless perform the specified unloading, and any additional cost will be adjusted pursuant to the "Changes" provisions. When the Contractor's plant is within the same city or county in which the Government material is located, the Contractor will accept the Government material at the Government depot.
(f) LIABILITY FOR EXCESS USAGE The Contractor shall be charged for all material consumed by the Contractor in excess of the applicable allowances. The following procedure shall be utilized to determine whether the Contractor consumed material in excess of allowances:
(1) The total allowance for the contract shall be determined by multiplying the number of end items accepted for payment by the value of allowance per unit stated in paragraph (a) above.
(2) The total value of material consumed shall be determined by charging the Contractor for the total value of materials furnished at the price stated in paragraph (a) above and crediting Contractor at said price for all material returned to the Government in an undamaged condition in the form of full and short pieces.
(3) No charge shall be made unless the total value of all excess usage exceeds $50.00.
(g) CONTRACTOR INVENTORY
(1) Scrap and Ends: Disposal of scrap and ends will be the responsibility of the Contractor.
(2) Other Government Material: All Government material other than scrap and ends shall be returned to the Government on Government Bills of Lading, or disposed of by the Contractor as directed by the contracting officer.
(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 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) SCRAP: Includes clippings, remnants, cut parts, and cutting parts.
(i) CLIPPINGS: Residue from cutting operations not large enough to be recut into small 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 at least nine inches by nine inches can be cut.
(i) IRREPARABLES. All irreparable items shall be returned to the Government at the Contractor's expense to destinations specified by the contracting officer, and no payment or credit will be given.
(j) RETENTION OF PIECE TICKETS. The Contractor shall retain all piece tickets removed from Government material for a period of twelve (12) months subsequent to completion of performance of this contract. The Contractor shall assemble all piece tickets from a particular lay (section) 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 in accordance with this clause shall be returned to the Government upon the Government's request.
(k) NOTIFICATION OF SUBSTITUTE OR UNSUITABLE GOVERNMENT-FURNISHED MATERIAL. Upon receipt of Government-furnished material which the Contractor considers to be a substitution for the material specified in the Schedule, the Contractor shall notify the contracting officer in writing. In the event that notification of substitution is given pursuant to this provision or notification of unsuitability is given pursuant to paragraph (d) of FAR 52.245-1, the Contractor shall furnish a copy of such notification, and upon request, the suppliers' piece tickets, to the Government Quality Control Representative.
(l) REPRESENTATION. Upon completion of deliveries, the Contractor shall render the following representation to the property administrator: "It is represented that material 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 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."
0RECORDS OF GOVERNMENT PROPERTY. Notwithstanding FAR 52.245-1 "Government Property" appearing elsewhere in this contract, the Defense Supply Center Philadelphia shall maintain the official control records for Government property provided.
(End of Clause)
