I.  Editorial Comments

The editorial comments are grouped by the FAR section they address.

Comments on FAR 45.104(d): This paragraph addresses contractor liability and the appropriate form of restitution once a loss of property has been established. One respondent recommended changing "lost property" to "property loss," and another respondent suggested adding "fair value" and replacing "restitution" with "compensation."

Response: The final rule uses "property loss" in lieu of "lost property." The other recommendations are not incorporated in the final rule because (1) substituting "compensation" for "restitution" does not add clarity, and (2) the use of "fair value" would introduce a new concept of valuation.

Comments on FAR 45.105: Three comments were received on this section. One recommended substituting "liability" for "and liability;" another suggested deleting either "and" or "or" in paragraph (b)(1); and a third recommended adding "under the Government property clause" in paragraph (d).

Response: These edits are not incorporated in the final rule because they do not further clarify the coverage.

Comments on FAR 45.201: One respondent suggested deleting either "and" or "or" at FAR 45.201(a)(1). Another respondent suggested adding the contractor's property management "plan" to the list at FAR 45.201(c)(4), because the plan depicts the standard way a contractor does business.

Response: The final rule incorporates the recommended revisions because they increase clarity.

Comment on FAR 45.202: A respondent suggested that the rules for evaluating offers when one offeror possessed Government property, and other offerors did not, would be improved by adding the phrase "using the FAR 52.245-9 Rental Calculation process" in this section.

Response: FAR 45.202(a) is revised to read "a rental equivalent evaluation factor as specified in FAR 52.245-9."

Comment on FAR 45.602: One respondent suggested changing "may entitle" to "entitles" at FAR 45.602-1(b)(4).

Response: This change, had it been incorporated in the final rule, would have been a policy change that effectively gave a contractor an absolute entitlement to an equitable adjustment if the Government did not provide timely disposition instructions. Contracting officers require discretion and flexibility in determining whether an equitable adjustment is warranted.

Comments on FAR 45.603: One respondent recommended relocating FAR 45.603(c) to 45.603(a)(1). A respondent recommended inserting "recipients" at FAR 45.603(c), and another respondent suggested adding "as applicable" to FAR 45.603(b).

Response: None of the recommendations is incorporated into the final rule. The Councils elected not to relocate FAR 45.603(c) because it would distort the proper sequence of events. "Recipient's" was not added to paragraph (c) because the Government will not bear any of the costs incident to such donations, regardless of who incurred them. "As applicable" is not added to paragraph (b) because review at a level higher than the plant clearance officer is required in cases of other contractor inventory.

Comment on FAR 45.606: One respondent suggested inserting "in coordination with the plant clearance officer" at FAR 45.606(a).

Response: The revision is incorporated in the final rule.

Comments on FAR 52.245-1(b): Several editorial revisions were recommended for this paragraph. One respondent suggested revising FAR 52.245-1(b)(4) by adding "surveillance, self-assessments, or" and deleting "and" in "and/or."

Response: The final rule incorporates these edits, such that the contractor must perform periodic internal reviews, surveillances, self assessments, or audits.

Comments on FAR 52.245-1(f)(1)(vii): Five editorial recommendations were proposed for this paragraph of the Government Property clause, which addresses "Relief of stewardship responsibilities." One recommendation was to revise 52.245-1(f)(1)(vii)(A) from "necessary" corrective actions to "any necessary," and another was to delete "all" at paragraph 52.245-1(f)(1)(vii)(B)(10). Other recommendations were to amend paragraph 52.245-1(f)(1)(vii)(B)(8) to add "and preventive actions," change "reimbursement" to "compensation," insert "export controlled" and "and authorities" and delete "if so," and amend paragraph 52.245-1(f)(1)(vii)(C)(3) so as not to unnecessarily limit the contractor's discretion to dispose of property in accordance with other paragraphs of the Government Property clause.

Response: The first two recommendations are not incorporated in the final rule because they would have introduced ambiguity and unintentionally introduced a lower standard. The next two recommendations starting at "other recommendations" are incorporated in the final rule. The last recommendation is not incorporated in the final rule because the proposed language does not limit the contractor's discretion.

Comments on FAR 52.245-1(h): One respondent suggested deleting  "and/or" at paragraph (h)(1). A respondent suggested that paragraph (h)(3) should be revised to be more consistent with the policy intent.  Another respondent recommended changing "directed" to "determined" at paragraph (h)(4).

Response: Paragraph (h)(1) is not changed because the intent is clear--either one or the other or both is acceptable. Paragraph (h)(3) is not revised because it is consistent with the policy. Paragraph (h)(4) was revised to adopt "determined" as a more consistent use of terminology.

Comment on FAR 52.245-1(k): One respondent recommended adding  "non-sensitive."

Response: The applicability of this paragraph is clear without the addition.