52.247-66
Returnable Cylinders
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.