[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 820-821]
 
            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
 
45.407  Non-Government use of plant equipment.

    Requirements for authorization and dollar thresholds for non-
Government use of specific types of plant equipment shall be set at the 
agency level. The

[[Page 821]]

following general policies and requirements shall be used by agencies in 
supplementing this section:
    (a) The contracting officer's advance written approval shall be 
required for any non-Government use of active plant equipment. Before 
authorizing non-Government use exceeding 25 percent, the contracting 
officer shall obtain approval of the head (or designee) of the agency 
that awarded the contract to which the property is accountable.
    (b) The approvals under paragraph (a) above may be granted only when 
it is in the Government's interest--
    (1) To keep the equipment in a high state of operational readiness 
through regular use;
    (2) Because substantial savings to the Government would accrue 
through overhead cost-sharing and receipt of rental; or
    (3) To avoid an inequity to a contractor who is required by the 
Government to retain the equipment in place.
    (c) If the contractor's request for non-Government use in excess of 
25 percent is approved, the contracting officer may require the 
contractor to insure the property against loss or damage. Facilities 
contracts may be modified to require such insurance.