Federal Acquisition Regulation; Returnable Cylinders

DEPARTMENT OF DEFENSE

48 CFR Parts 47 and 52

[FAC 90-20; FAR Case 91-10; Item XVIII]

RIN 9000-AE66

Federal Acquisition Regulation; Returnable Cylinders

AGENCIES: Department of Defense (DOD), General Services Administration

(GSA), and National Aeronautics and Space Administration (NASA).

ACTION: Final rule.

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SUMMARY: The Civilian Agency Acquisition Council and the Defense

Acquisition Regulations Council have agreed on a final rule that amends

the Federal Acquisition Regulation (FAR) by adding a clause entitled

Returnable Cylinders, with its prescriptive language. The clause

prescribes the Government's responsibilities relating to the return and

accountability of contractor-furnished returnable cylinders.

EFFECTIVE DATE: May 9, 1994.

FOR FURTHER INFORMATION CONTACT: Ms. Linda Klein at (202) 501-3775 in

reference to this FAR case. For general information, contact the FAR

Secretariat, room 4037, GS Building, Washington, DC 20405 (202) 501-

4755. Please cite FAC 90-20, FAR case 91-10.

SUPPLEMENTARY INFORMATION:

A. Background

This change was recommended as a result of the Defense Management

Review Regulatory Reform initiative. The Councils determined that

language in FAR supplements would be useful for all Federal contracting

activities. The proposed rule was published in the Federal Register at

56 FR 14298, April 8, 1991. Five substantive comments were received.

After evaluating the comments, the coverage has been amended (1) to

apply only to cylinders; (2) by adding a definition of the term

``cylinder'' in the clause; (3) by revising paragraphs (a) and (b) of

the clause to eliminate inconsistencies; and (4) to refer to a ``loan

period'' in place of the debit/credit concept previously referenced.

B. Regulatory Flexibility Act

The Department of Defense, the General Services Administration, and

the National Aeronautics and Space Administration certify that this

final rule will not have a significant economic impact on a substantial

number of small entities under the Regulatory Flexibility Act, 5 U.S.C.

601, et seq., because it prescribes Government responsibilities related

to the return and accountability of returnable cylinders without

imposing an additional burden on contractors.

C. Paperwork Reduction Act

The Paperwork Reduction Act does not apply because the changes to

the FAR do not impose recordkeeping or information collection

requirements, or collections of information from offerors, contractors,

or members of the public which require the approval of the Office of

Management and Budget under 44 U.S.C. 3501, et seq.

List of Subjects in 48 CFR Parts 47 and 52

Government procurement.

Dated: February 15, 1994.

Albert A. Vicchiolla,

Director, Office of Federal Acquisition Policy.

Therefore 48 CFR parts 47 and 52 be amended as set forth below:

1. The authority citation for 48 CFR parts 47 and 52 continues to

read as follows:

Authority: 40 U.S.C. 486(c); 10 U.S.C. Chapter 137; and 42

U.S.C. 2473(c).

PART 47--TRANSPORTATION

2. Section 47.305-17 is added to read as follows:

47.305-17 Returnable cylinders.

The contracting officer shall insert the clause at 52.247-66,

Returnable Cylinders, in a solicitation and contract whenever the

contract involves the purchase of gas in contractor-furnished

returnable cylinders and the contractor retains title to the cylinders.

PART 52--SOLICITATION PROVISIONS AND CONTRACT CLAUSES

3. Section 52.247-66 is added to read as follows:

52.247-66 Returnable Cylinders.

As prescribed in 47.305-17, insert the following clause:

Returnable Cylinders (May 1994)

(a) Cylinder, referred to in this clause, is a pressure vessel

designed for pressures higher than 40 psia and having a circular

cross section excluding a portable tank, multitank car tank, cargo

tank or tank car.

(b) Returnable cylinders shall remain the Contractor's property

but shall be loaned without charge to the Government for a period of

____ days [Contracting Officer shall insert number of days]

(hereafter referred to as loan period) following the day of delivery

to the f.o.b. point specified in the contract. Any cylinder not

returned within the loan period shall be charged a daily rental

beginning with the first day after the loan period expires, to and

including the day the cylinders are delivered to the Contractor (if

the original delivery was f.o.b. origin) or are delivered or made

available for delivery to the Contractor's designated carrier (if

the original delivery was f.o.b. destination). The Government shall

pay the Contractor a rental of $____________ [Contracting Officer

shall insert dollar amount for rental, after evaluation of offers]

per cylinder, per day, computed separately for cylinders by type,

size, and capacity and for each point of delivery named in the

contract. No rental shall accrue to the Contractor in excess of

replacement value per cylinder specified in paragraph (c) of this

clause.

(c) For each cylinder lost or damaged beyond repair while in the

Government's possession, the Government shall pay to the Contractor

the replacement value, less the allocable rental paid for that

cylinder as follows: ____________________ [Contracting Officer shall

insert the cylinder types, sizes, capacities, and associated

replacement values.] These cylinders shall become Government

property.

(d) If any lost cylinder is located within ____________________

[Contracting Officer shall insert number of days] calendar days

after payment by the Government, it may be returned to the

Contractor by the Government, and the Contractor shall pay to the

Government an amount equal to the replacement value, less rental

computed in accordance with paragraph (b) of this clause, beginning

at the expiration of the loan period specified in paragraph (b) of

this clause, and continuing to the date on which the cylinder was

delivered to the Contractor.

(End of clause)

[FR Doc. 94-4399 Filed 3-9-94; 8:45 am]

BILLING CODE 6820-34-M