52.247-66 Returnable Cylinders
Source: FAR 52.247-66 on acquisition.gov
FAR 52.247-66 ensures clear terms for the loan, return, and financial responsibility of contractor-owned cylinders used by the Government, including rental charges and replacement costs.
Overview
FAR 52.247-66, Returnable Cylinders, establishes the terms and conditions for the use, return, and potential loss or damage of contractor-owned, returnable cylinders loaned to the Government under a contract. The clause defines what constitutes a cylinder, sets the loan period, outlines rental charges for late returns, and specifies replacement value payments for lost or damaged cylinders. It also provides a mechanism for reimbursement if a lost cylinder is found and returned after payment has been made.
Key Rules
- Definition of Cylinder
- Only pressure vessels designed for pressures above 40 psia with a circular cross-section are covered, excluding certain tank types.
- Loan Period and Ownership
- Cylinders remain contractor property and are loaned to the Government for a specified period at no charge; late returns incur daily rental fees.
- Rental Charges
- The Government pays a daily rental fee for each cylinder not returned within the loan period, up to the replacement value.
- Replacement Value for Loss or Damage
- The Government must pay the replacement value (minus any rental paid) for cylinders lost or damaged beyond repair; these then become Government property.
- Reimbursement for Recovered Cylinders
- If a lost cylinder is found and returned within a specified period after payment, the contractor must reimburse the Government the replacement value minus applicable rental.
Responsibilities
- Contracting Officers: Must specify the loan period, rental rate, replacement values, and relevant timeframes in the contract.
- Contractors: Must track cylinder returns, assess rental charges, and process replacement value claims.
- Agencies: Must ensure timely return of cylinders, pay applicable charges, and manage property accountability.
Practical Implications
- This clause protects contractor property while ensuring the Government has access to necessary cylinders for a defined period. It clarifies financial responsibilities for late returns, loss, or damage, and provides a fair process for reimbursement if lost property is recovered. Common pitfalls include failing to track loan periods, miscalculating rental charges, or not specifying required details in the contract.
As prescribed in 47.305-17 , insert the following clause:
Returnable Cylinders (May 1994)
(a) Cylinder, referred to in this clause, is a pressure vessel designed for pressures higher than 40 psia and having a circular cross section excluding a portable tank, multi-tank car tank, cargo tank or tank car.
(b) Returnable cylinders shall remain the Contractor’s property but shall be loaned without charge to the Government for a period of ____ days [Contracting Officer shall insert number of days] (hereafter referred to as loan period) following the day of delivery to the f.o.b. point specified in the contract. Any cylinder not returned within the loan period shall be charged a daily rental beginning with the firstday after the loan period expires, to and including the day the cylinders are delivered to the Contractor (if the original delivery was f.o.b. origin) or are delivered or made available for delivery to the Contractor’s designated carrier (if the original delivery was f.o.b. destination). The Government shall pay the Contractor a rental of $____________ [Contracting Officer shall insert dollar amount for rental, after evaluation of offers] per cylinder, perday, computed separately for cylinders by type, size, and capacity and for each point of delivery named in the contract. No rental shall accrue to the Contractor in excess of replacement value per cylinder specified in paragraph (c) of this clause.
(c) For each cylinder lost or damaged beyond repair while in the Government’s possession, the Government shall pay to the Contractor the replacement value, less the allocable rental paid for that cylinder as follows:
________________________________________________ ________________________________________________ ________________________________________________ [Contracting Officer shall insert the cylinder types, sizes, capacities, and associated replacement values.]
These cylinders shall become Government property.
(d) If any lost cylinder is located within ___________ [Contracting Officer shall insert number of days] calendar days after payment by the Government, it may be returned to the Contractor by the Government, and the Contractor shall pay to the Government an amount equal to the replacement value, less rental computed in accordance with paragraph (b) of this clause, beginning at the expiration of the loan period specified in paragraph (b) of this clause, and continuing to the date on which the cylinder was delivered to the Contractor.
(End of clause)