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DSCR

DSCR I224: GOVERNMENT FURNISHED PROPERTY (SILVER - DEFINITE AMOUNT)

I224   52.245-9G12   GOVERNMENT FURNISHED       DSCR (AUG 2005)
AND                  PROPERTY (SILVER-DEFINITE 
I45F35               AMOUNT)

    (a)  Government Property Clause:  FAR Clause FAR 52.245-2, 
Government Property (Fixed Price Contracts) (JUN 2003) is 
incorporated herein by reference.

    (b)  Government Furnished (GF) Silver:  The Government intends 
to furnish silver; therefore, the offeror shall exclude the cost of 
such GF silver from their offered price.  The following conditions 
governing GF silver shall apply. Only the type of silver described 
herein, in the quantity cited in paragraph (c)(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 of 
silver and any adjustments called for will be computed on such basis.

    (c)  Provisions Relating to Materials to be Furnished 
by the Government:

         (1)  The Government will provide to the Contractor within 
thirty (30) days after award a total of ______ troy ounces of 
silver with a minimum purity of 99.90% and a per troy ounce value as 
indicated in paragraph (b) above.  The quantity of silver to be 
furnished will be determined by the number of troy ounce(s) of 
99.90% pure silver (or fraction thereof) in each end item (as 
indicated by the end item percentage of silver cited in the procurement 
item description, Government specifications, or other technical data) 
multiplied by the total number of end items (which contain silver) 
to be delivered under the contract.  (Does not include any additional
percent deliverable under a variation in quantity clause if such a 
clause is contained in the contract.)  Silver will be the only 
material furnished by the Government.  All other material required 
in the performance of this contract shall be furnished by the 
Contractor.

         (2)  The delivery date(s) for supplies to be furnished by 
the Contractor under this contract are based upon the expectation 
that GF silver being provided will be suitable for use and 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.

              (i)  If GF silver in the quantities called for in 
paragraph (c)(1) above 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 (b) above and then 
divided by the total number of end items (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 (b) above and then divided 
by the total number of end items (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)  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 SPACE BELOW THE NAME AND COMPLETE ADDRESS 
OF THE PLANT TO WHICH THE GF SILVER IS TO BE DELIVERED.

         PLANT:                                                     

         LOCATION:                                                  

         (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 Contractor shall 
bear the responsibility of insuring 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 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 this contract, the Contractor assumes the 
risk of, and shall be responsible for, any loss of or damage to 
GF silver provided under this contract upon delivery of the silver 
to the plant specified by the Contractor in paragraph (c)(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 this 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 FOB 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%.