[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 820]
 
            TITLE 48--FEDERAL ACQUISITION REGULATIONS SYSTEM
 
                CHAPTER 1--FEDERAL ACQUISITION REGULATION
 
PART 45--GOVERNMENT PROPERTY--Table of Contents
 
     Subpart 45.4--Contractor Use and Rental of Government Property
 
45.404  Rent-free use.

    (a) The rental required by 45.403 above does not apply to the 
following Government production and research property:
    (1) That which is located in Government-owned, contractor-operated 
plants operated on a cost-plus-fee basis (but see 45.405).
    (2) That which is left in place or installed on contractor-owned 
property for mobilization or future Government production purposes. 
However, rent computed in accordance with 45.403(a) shall apply to that 
portion of property or its capacity used or authorized for use.
    (3) Items of equipment that are part of a general program approved 
by the Federal Emergency Management Agency (FEMA) and present unusual 
problems in relation to the time required for their preparation for 
shipment, installation, and operation because of size, complexity, or 
performance characteristics.
    (4) Any other Government production and research property that may 
be excepted by FEMA.
    (b) The contracting officer cognizant of the Government production 
and research property may grant written authorization for rent-free use 
of production and research property in the possession of nonprofit 
organizations when used for research, development, or educational work 
and--
    (1) The use of the property is directly or indirectly in the 
national interest;
    (2) The property will not be used for the direct benefit of a 
profitmaking organization; and
    (3) The Government receives some direct benefit (such as rights to 
use the results of the work without charge) from its use. As a minimum, 
the contractor shall furnish a report on the work for which the property 
was provided.
    (c) If the contracting officer has obtained adequate price or other 
consideration, Government production and research property may also be 
used rent-free under--
    (1) Prime contracts that specifically authorize such use without 
charge; and
    (2) Subcontracts of any tier, if the contracting officer awarding 
the prime contract has specifically authorized rent-free use by the 
subcontractor.
    (d) After award, a contract may be modified to eliminate rent for 
using Government production and research property. In this case, the 
contract shall be equitably adjusted to reflect the elimination of rent 
and any other amount attributable thereto.