[Code of Federal Regulations]
[Title 48, Volume 1]
[Revised as of October 1, 2002]
From the U.S. Government Printing Office via GPO Access
[CITE: 48CFR45]

[Page 811-812]
 
            TITLE 48--FEDERAL ACQUISITION REGULATIONS SYSTEM
 
                CHAPTER 1--FEDERAL ACQUISITION REGULATION
 
PART 45--GOVERNMENT PROPERTY--Table of Contents
 
                   Subpart 45.2--Competitive Advantage
 
45.204  Residual value of special tooling and special test equipment.

    (a) In awarding competitively negotiated contracts that permit the 
acquisition of special tooling or special test equipment, an evaluation 
may be made of the residual value of the property to the Government. 
This evaluation is appropriate when the contracting officer (1) 
determines that the property will have a reasonably foreseeable 
usefulness and related residual value beyond the period of use on the 
proposed contract and (2) anticipates that the cost of the property (as 
proposed by the several offerors) may be a factor in making the award. 
This evaluation is not appropriate if the contract will include the 
special tooling or special test equipment as a contract line item.
    (b) The purpose of evaluating the residual value of special tooling 
or special test equipment is to apportion to each proposal only that 
part of the total cost of the property that represents the amount of 
useful life to be consumed during contract performance. Accordingly, the 
proposed price or cost may be reduced for evaluation purposes by an 
amount representing the residual value of such property to

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the Government. In estimating residual value, the contracting officer 
shall consider--
    (1) The useful life of the special tooling and special test 
equipment to be acquired;
    (2) Adaptability of the property for use by other contractors or by 
the Government;
    (3) Reasonably foreseeable requirements for future use of the 
property; and
    (4) The scrap or salvage value of the property.
    (c) If the contacting officer decides to consider the residual value 
of special tooling or special test equipment, the solicitation shall so 
notify offerors and state the Government's reasonably foreseeable future 
requirements for the property.