644.486—Disposal of buildings and improvements constructed under emergency plant facilities (EPF) or similar contracts.
Procedure for the disposal of property constructed under a facilities contract on lands neither owned by nor leased to the Department is set forth as follows:
(a) By using service.
Disposal of structural components as well as equipment may be accomplished by the using service. The term “structure” is defined to mean plant equipment which:
(3)
Is a separate building or a complete structural addition to a building in which the Government otherwise has no interest, such as a wing, and in which a defense contractor carries on part or all of his defense production.
(b) By the Corps of Engineers.
Where disposal of structures, as well as other plant equipment located within such structure, is to be accomplished by the Corps of Engineers, instructions will be issued as to the extent to which the Corps of Engineers will participate in such action. Subject to special instructions by DAEN-REM, the following coordinated actions will be taken:
(1)
The using service will report to the Corps of Engineers the property which is excess to the Department's needs.
(2)
The excess directive report will include the designation by name and address of a responsible officer of the using service to join with the DE concerned as a representative of the Chief of Engineers. These two representatives will meet with the contractor within seven days of their appointment to determine his interest in acquiring all or any part of the facilities. This determination will be made in the shortest possible time.
(3)
The meeting with the contractor will promptly establish those facilities to be retained by the contractor and those to be declared excess. Waiver of existing options will be obtained where necessary.
(4)
Equipment that is of no interest to the contractor will be disposed of by using service in accordance with applicable regulations.
(5)
Custody of and accountability for the entire facility remains with the using service until other arrangements have been completed.
(6)
The Corps of Engineers will complete negotiations for property to be retained by the contractor as rapidly as possible.
(7)
When an agreement has been reached with the contractor, the DE or his contracting officer may execute the supplemental agreement to the lease or facilities contract transferring improvements, including machinery and equipment as a unit. Authority for the transfer should be recited in the supplemental agreement. In the case of a supplemental agreement to a facilities contract, authority will be obtained from the using service through its local representative for the DE or his contracting officer to sign the supplemental agreement transferring the improvements, including machinery and equipment to the contractor. (Figure 11-18 in ER 405-1-12 is the suggested format for Supplemental Agreement to Emergency Plant Facilities Contract.)
(8)
Upon completion of negotiations, the responsible DE will issue instructions to the using service to dispose of equipment not included in the final negotiations in accordance with applicable regulations. Accountability for the property will be transferred at this time to the new owner or, in the case of real property retained by the Department, to the Corps of Engineers.
(9)
Property not disposed of to the contractor will be disposed of in the same manner as improvements located on surplus leasehold property.