52.245-9
Use and Charges
Contractors must obtain written authorization and pay calculated rental charges before using Government property for nongovernmental purposes, or risk penalties and revocation of use rights.
Overview
FAR 52.245-9, "Use and Charges," governs the use of Government property by contractors for nongovernmental purposes and establishes procedures for rental charges when such use is authorized. The clause defines key terms, outlines when and how contractors may use Government property without charge, and details the process for requesting, calculating, and paying rental fees for authorized nongovernmental use. It also sets forth the consequences for unauthorized use and the Government's right to revoke use authorization at any time.
Key Rules
- Authorized Use Without Charge
- Contractors may use Government property without charge only for specific Government contracts, approved subcontracts, or other work if explicitly authorized in writing by the Contracting Officer.
- Rental for Nongovernmental Use
- Written permission from the Contracting Officer is required for nongovernmental use, and rental fees must be calculated and agreed upon before use begins.
- Rental Calculation Methods
- Rental charges for real property are based on independent appraisals; for other property, a formula based on acquisition cost or an appraisal may be used. Alternative methods may be proposed if standard methods are impractical.
- Rental Payment and Records
- Rent is due within 60 days after the rental period, with interest charged for late payments. Contractors must provide detailed records to support rental calculations.
- Government Rights and Penalties
- The Government may revoke authorization at any time and require property return or restoration. Unauthorized use may result in criminal penalties.
Responsibilities
- Contracting Officers: Must authorize use and approve rental arrangements, verify appraisals, and may revoke use at any time.
- Contractors: Must obtain written authorization, calculate and pay rental charges, maintain records, and comply with all terms regarding use and restoration of property.
- Agencies: Oversee compliance, enforce penalties for unauthorized use, and manage property return/restoration.
Practical Implications
- This clause ensures Government property is only used for authorized purposes and that the Government is compensated for nongovernmental use. Contractors must strictly follow procedures for requesting and documenting use, calculating charges, and making timely payments. Failure to comply can result in financial penalties, loss of property use, or criminal prosecution.