[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 813-814]
 
            TITLE 48--FEDERAL ACQUISITION REGULATIONS SYSTEM
 
                CHAPTER 1--FEDERAL ACQUISITION REGULATION
 
PART 45--GOVERNMENT PROPERTY--Table of Contents
 
       Subpart 45.3--Providing Government Property to Contractors
 
45.302-1  Policy.

    (a) Contractors shall furnish all facilities required for performing 
Government contracts except as provided in this subsection. Government 
facilities provided to contractors shall be individually identified in 
the solicitation, if possible, and contract. Agencies shall not furnish 
facilities to contractors for any purpose, including restoration, 
replacement, or modernization, except as follows:
    (1) For use in a Government-owned, contractor-operated plant 
operated on a cost-plus-fee basis.
    (2) For support of industrial preparedness programs.
    (3) As components of special tooling or special test equipment 
acquired or fabricated at Government expense.
    (4) When, as a result of the prospective contractor's written 
statement asserting inability to obtain facilities, the agency head or 
designeee issues a Determination and Finding (see subpart 1.7) that the 
contract cannot be fulfilled by any other practical means or that it is 
in the public interest to provide the facilities.
    (i) If the contractor's inability to provide facilities is due to 
insufficient lead time, the Government may provide existing facilities 
until the contractor's facilities can be installed.
    (ii) Mere assertion by a contractor that it is unable to provide 
facilities is not, in itself, sufficient to justify approval. 
Appropriate Government officials must determine that providing 
Government facilities is justified.
    (iii) The determination shall include findings that private 
financing of the facilities was sought but not available or that private 
financing was determined not advantageous to the Government. The 
determination shall also state that the contract cannot be accomplished 
without Government facilities being provided.
    (iv) The original determination shall be included in the contract 
file.
    (v) No determination is required when the facilities are provided as 
components of special tooling or special test equipment acquired or 
fabricated at Government expense.
    (5) As otherwise authorized by law or regulation.
    (b) Agencies shall not--
    (1) Furnish new facilities to contractors unless existing 
Government-owned facilities are either inadequate or cannot be 
economically furnished;
    (2) Use research and development funds to provide contractors with 
new

[[Page 814]]

construction or improvements of general utility, unless authorized by 
law; or
    (3) Provide facilities to contractors solely for non-Government use, 
unless authorized by law.
    (c) Competitive solicitations shall not include an offer by the 
Government to provide new facilities, nor shall solicitations offer to 
furnish existing Government facilities that must be moved into a 
contractor's plant, unless adequate price competition cannot be 
otherwise obtained. Such solicitations shall require contractors to 
identify the Government-owned facilities desired to be moved into their 
plants.
    (d) Government facilities with a unit cost of less than $10,000 
shall not be provided to contractors unless--
    (1) The contractor is a nonprofit institution of higher education or 
other nonprofit organization whose primary purpose is the conduct of 
scientific research;
    (2) A contractor is operating a Government-owned plant on a cost-
plus-fee basis;
    (3) A contractor is performing on a Government establishment or 
installation;
    (4) A contractor is performing under a contract specifying that it 
may acquire or fabricate special tooling, special test equipment, and 
components thereof subsequent to obtaining the approval of the 
contracting officer; or
    (5) The facilities are unavailable from other than Government 
sources.

[48 FR 42392, Sept. 19, 1983, as amended at 54 FR 34756, Aug. 21, 1989]