G.  Definitions

Comment: One respondent suggested revising the definition of  "production scrap," changing the term to "material scrap," and including scrap from non-production activities in the definition at FAR 45.101 and 52.245-1(a).

Response: The term "production scrap" is the recognized and consistent term used throughout the FAR, but the additional text is added to clarify what is included in the term.

Comment: Two respondents suggested changing the term "unit acquisition cost" to "item acquisition cost" at FAR 45.101 and 52.245-1(a). One of these respondents also suggested adding "fair value at the time of loss" to the definition.

Response: The Councils prefer the term "unit acquisition cost" versus "item acquisition cost." The unit acquisition cost, provided by the Government, is the actual cost at the time of purchase and is the proper measure of value.

Comments: Four recommendations were received for revising the definition of "loss of Government property." Two of these suggested adding "in the possession of a contractor under terms of a contract" to the definition. Another recommended adding "material" prior to "harm" to denote that damage should not include ordinary repairs due to normal wear and tear. A third recommendation was to add "occurrences such as" to the definition in order to make it consistent with Defense Federal Acquisition Regulation Supplement 252.245-7002.

Response: The first change is not made as it would be superfluous; i.e., the entire FAR part 45 refers to Government Property in contractor's possession. "Material" is not added to the definition because the definition already excludes normal wear and tear. The phrase "occurrences such as" is added to the definition for additional clarity.

Comment: One respondent suggested adding a definition for "repair, maintenance, and overhaul scrap" at FAR 45.606-1.

Response: The essence of the proposed definition is included in the authority given to the contracting officer at FAR 45.603. There is no need to include a separate definition.