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DSCR

DSCR I225AA: GOVERNMENT FURNISHED PROPERTY (SILVER - ESTIMATED AMOUNT)

I225AA  52.245-9G18  GOVERNMENT FURNISHED PROPERTY  DSCR (AUG 2005)
AND                  (SILVER ESTIMATED AMOUNT) 
I45F36


    (a)  Government Property Clause:  FAR Clause 52.245-2, 
Government Property (Fixed Price Contracts) (MAY 2004), is 
incorporated herein by reference.

    (b)  In accordance with Section M Provision 252.208-7000 
of this solicitation, the offeror shall submit two prices for each 
contractually deliverable item containing silver; one based on 
Government furnished (GF) silver and one based on contractor 
furnished silver.  Failure of the offeror to submit two prices 
may be reason for determining the offer unacceptable.

    (c)  Government Furnished (GF) Silver:  If it is deemed in the 
best interest of the Government to provide GF silver, the accepted 
offered price will be that which does not include the cost of 
contractor provided silver and the following conditions governing 
GF silver will apply.  Only the type of silver described herein, in 
the quantity determined in accordance with paragraph (d)(1) below, 
will be furnished by the Government at the Government's expense.  GF 
silver will be valued for all purposes at $           per troy 
ounce and any adjustment called for will be computed on such 
basis.

    (d)  Provisions relating to Government Furnished (GF) Silver:

         (1)  When the accepted offered price is that price which is 
based on GF silver, the Government will provide to the contractor 
within thirty (30) days after award silver with a minimum purity of 
99.90% and a value as indicated in paragraph (c) above.  Subject 
to the Government's approval, the quantity of GF silver to be 
furnished will be determined by the contractor's silver requirement 
as indicated in Section M Provision 252.208-7000 of its offer.
  The Government estimates a total of           troy ounces of 
silver are needed to produce all the end items being procured by 
this acquisition.  This estimate is based on the amount of silver 
in each end item (as indicated by the end item percentage of silver 
cited in the procurement item description, Government specification, 
or other technical data) multiplied by the total number of end 
items (which contain silver) to be delivered under the contract.

         (2)  The delivery date(s) for supplies to be furnished 
by the contractor under this contract are based upon the expectation 
that when GF silver is to be provided, such silver, suitable for use, 
will be delivered to the contractor within thirty (30) days after award.
If GF silver is not delivered to the Contractor by the required time,
the Contractor should contact the GFP Monitor, Strategic Material
Sourcing Group, ATTN:  DSCR-FAGD, Telephone (804) 279-4642.
 Silver will be the only material furnished by the Government.
All other material required in the performance of the contract shall 
be furnished by the contractor.

              (i)  If the Government approved/contractor required 
quantity of GF Silver is not delivered to the contractor, the contract 
unit price shall be increased by an amount computed based on the amount 
of GF silver not supplied multiplied by the value of a troy ounce of 
silver, as provided in paragraph (c) above, and then divided by the 
total number of end item units (which contain silver) being procured.

             (ii)  If the GF silver provided does not meet the purity 
standard specified herein or if the purity standard of the Government 
silver is not adequate for the contractor's use, the contractor shall, 
upon receipt of the GF silver, notify the Administrative Contracting 
Officer (ACO) of such fact.  If the ACO directs the contractor to return 
the GF silver, the contract unit price shall be increased by an amount 
computed based on the amount of GF silver returned multiplied by the 
value of a troy ounce of silver, as provided in paragraph (c) above, 
and then divided by the total number of end item units 
(which contain silver) being procured.

            (iii)  The foregoing provisions for adjustment are 
exclusive and the Government shall not be liable in any suit for 
breach of contract by reason of any delay in delivery of GF silver 
or delivery of such silver in a condition not suitable for its 
intended use.

         (3)  Such GF silver will be delivered to the contractor 
FOB at or near the contractor's or subcontractor's plant.
Contractor may indicate a subcontractor to receive the GF silver.
The contractor will be responsible for the GF silver upon arrival 
at the designated plant.  Any subsequent forwarding of the GF silver 
from the subcontractor's plant to the prime contractor's plant will 
be the full responsibility of the prime contractor.  Offeror shall 
insert in the space below the name and complete address of the plant 
to which GF silver is to be delivered:

   PLANT                                                    

   CITY AND STATE                                           

         (4)  The contractor shall establish and maintain adequate
records, either manual or mechanized, in such form as to reflect 
adequately the amount of GF silver for which it is accountable.  
The contractor's normal industrial practice in maintaining property 
control records for material, the same as or similar to the material 
provided as Government property, will be considered acceptable by 
the Government.  Such records will be made available for inspection 
by the Government at reasonable times.  These contractor maintained 
records shall be the official contract property record.  If any GF 
silver is in the possession of a subcontractor, the prime contractor 
shall bear the responsibility of ensuring that adequate records are 
maintained by the subcontractor.

         (5)  Use of Government Furnished Silver:  When authorized 
by the property administrator in accordance with FAR 45.505-3, the GF 
silver provided may be commingled with the contractor's property and 
used in the manufacture of items or supplies.

         (6)  Risk of Loss:  The Government shall at all times have 
title to the GF silver in the contractor's possession in a quantity 
equal to that supplied as Government furnished property less the 
quantity in the item(s) delivered to the Government.  Unless 
otherwise provided in the contract, the contractor assumes the risk 
of, and shall be responsible for, any loss of or damage to GF silver 
provided under the contract upon delivery of the silver to the plant 
specified by the contractor in paragraph (d)(3) above.  The contractor 
shall be responsible for delivery of GF silver to the Government in 
the quantity supplied as Government furnished property, less the 
quantity delivered in the end items computed on the "unit allowance" 
basis.

         (7)  Access - The Government, and any persons designated by 
it, shall at all reasonable times have access to the premises wherein 
any GF silver is located for the purpose of inspecting the Government 
property.

         (8)  Final Accounting and Disposition of GF Silver:  Upon 
completion of the contract, or at such earlier dates as may be fixed 
by the ACO, the contractor shall submit, in a form acceptable to the 
ACO, inventory schedules covering all items of GF silver not consumed 
in the performance of the contract or not theretofore delivered to the 
Government in the end item(s) (based on the unit allowance specified 
elsewhere in the contract) and shall prepare for shipment, deliver 
F.O.B. origin, or dispose of the Government property, as may be 
directed by the ACO.

         (9)  Communications:  All communications issued 
pursuant to this clause shall be in writing.

        (10)  GF silver shall have a minimum purity of 99.90%.