As prescribed in 45.106(103) insert the following clause:
GOVERNMENT-OWNED PROPERTY (BULK STORAGE CONTRACT) (Jul 2008) - DLAD
(a) Government-Owned Property. Once the Contractor produces the item listed as Line Item 0001 in the schedule and the Food and Drug Administration has inspected and accepted the initial lot(s) of these supplies, title shall pass to the Government. The Contractor shall be responsible and accountable for all Government-owned property while in Contractor storage and shall, at its own expense, replace stock rendered unusable regardless of cause. The Government shall retain title to the contract quantity throughout the entire contract period.
(b) Property Administration. The Contractor shall establish and maintain a program for the use, maintenance, protection, and preservation of Government-owned property in accordance with sound industrial practice. The Contractor shall establish and maintain inventory records, either manual or automated, in such form as to adequately reflect the contract quantity. Such records shall be made available for inspection by the Government at reasonable times. These Contractor-maintained records shall be the official contract records. If any Government-owned property is in the possession of a subcontractor, the Contractor shall bear the responsibility of insuring that adequate records are maintained by the subcontractor.
(c) Use of Government-Owned Property. The Government property shall be used only for performing this contract, unless otherwise provided in this contract or approved by the contracting officer.
(d) Risk of Loss. The Government shall, at all times, have title to the Government-owned property in the Contractor's possession in quantities equal to those initially inspected and accepted, less quantities of the item used to manufacture finished material which is subsequently delivered to the Government. The Contractor assumes the risk of, and shall be responsible for, any loss, destruction of, or damage to, the Government-owned property in its possession.
(e) Access. The Government and all its designees shall have access at all reasonable times to the premises in which any Government-owned property is located for the purpose of inspecting the Government-owned property.
(f) Final Accounting and Disposition of Government-Owned Property. Upon completing this contract, or at such earlier dates as may be fixed by the contracting officer, the Contractor shall submit, in a form acceptable to the contracting officer, inventory schedules covering all items of Government-owned property not delivered to the Government. The Contractor shall prepare for shipment, delivery F.O.B. origin, or dispose of the Government-owned property as may be directed or authorized by the contracting officer. The net proceeds of any such disposal shall be credited to the contract price or shall be paid to the Government as the contracting officer directs.
(g) Communications. All communications under this clause shall be in writing.
(End of Clause)
