As prescribed in 45.106(109) insert the following clause:
CONTRACTOR CONTROL OF GOVERNMENT-FURNISHED PROPERTY (GFP) (Jul 2008) - DLAD
(a) Clause 52.245-1, Government Property, requires the Contractor to comply with basic requirements to be observed by the Contractor in establishing and maintaining control over Government property provided pursuant to the terms of the contract. The Contractor shall establish a system, either manual or mechanized, which will assure adequate control for all Government property provided under this contract, including property provided under the contract as may be in the possession or control of a subcontractor. The system shall assure that records created and maintained provide the true physical and financial accounting of Government property, contract items shipped into the Contractor’s plant by other Contractors, property in possession of subcontractors, assembly Contractor acquired material converted to Government property under the terms of this contract, and property furnished by the Government to use by the Contractor under the terms of this contract. The property control system for Government property shall comply with the requirements of FAR and shall be approved, in writing by the Government contract property administrator. In addition to that information described in FAR 52.245-1, inventories for Government property shall include lot numbers for all food items.
(b) Unusable Subsistence Means:
(1) A food item which is fit for human consumption but its condition is such that it must be issued with a limited time frame and due to its condition cannot be used as a component within the meal assembly, or
(2) A food item which is in such condition as to be unfit for human consumption and which must be destroyed by burning, burial or other means. Disposition of such supplies will be directed by the contracting officer and will be at the expense of the Contractor. The Contractor is responsible for all handling, storage, preparation for shipment and authorized destruction for all Government-furnished Material (GFM) at no cost to the Government.
(c) Definitions:
(1) Manufacturer’s damage is defined as that damage to Government-furnished property-
(i) Discovered at the time of ration assembler’s inspection of incoming shipments as verified by the Government representative (except damage directly attributable to transportation), or
(ii) Found to be unusable during production operations due to defects obviously originating at the manufacturer level.
(2) Assembler’s damage is defined as that damage to GFP ration components which is not attributable to manufacturers damage, concealed damage, inspection incurred damage, or transportation damage.
(3) Concealed damage is defined as that damage where the cause or responsibility cannot be determined by the Government representative upon receipt inspection, is discovered subsequent to receiving inspection and not identifiable; as manufacturer or assembler incurred, i.e., which are discovered after the components have been accepted by assembler but prior to, or during assembly. Concealed damage shall be verified by the army veterinary inspector (AVI) and shall be certified by the AVI as not being assembler damage.
(4) Inspection incurred damage is defined as those components-
(i) Damaged or destroyed in verification examination,
(ii)Components submitted to the laboratory for destructive or special testing, and
(iii) Components destroyed by the Contractor in required Contractor examination and testing.
(d) The Contractor shall maintain a salvage department to daily identify and classify, under the Government representative’s guidance and direction, all damage to GFM (i.e., manufacturer’s, assembler’s, or concealed damage). All damaged GFM, after screening by the Contractor and verification by the Government representative, shall be reported to the contracting officer for disposition. The report(s) shall be submitted on a monthly basis and numbered sequentially; i.e., the first month’s report will be No. 1, the second month will be No. 2, etc. DSCP Form 2651-1, 2651-2, 2651-3 and 2651-4 supplied by the assigned Government representative will be used. Troop issue quantities should include the approximate number of truckloads required to ship said product. Number of truckloads should be separately designed for crackers alone and for all other components. Failure to submit applicable DSCP Forms 2651’s on a monthly basis will result in findings by the PCO that the assembler will be the cause of any delays in the assembly operations by reason of insufficient GFM, and is therefore liable for all the resultant cost. The submitted DSCP Form 2651’s must be executed by the Government representative or the document will not be considered valid and therefore will not relieve the Contractor of this requirement or of its liability for any assembly shutdown. In addition, nonconformances detected in GFM must be reported to the PCO on a daily basis.
(End of Clause)
