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D.C. Municipal Regulations (Last Updated: September 13, 2017) |
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Title 27. CONTRACTS AND PROCUREMENT |
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Chapter 27-41. USE OF DISTRICT PROPERTY AND SOURCES BY CONTRACTORS |
Section 27-4106. CONTRACTOR RESPONSIBILITY FOR DISTRICT PROPERTY
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4106.1Except as provided in the contract, the contractor shall be directly responsible and accountable for all District property, including all District property in the possession or control of a subcontractor.
4106.2The contractor shall maintain and make available all property control records required under this chapter and account for all District property until relieved of the responsibility by the contracting officer under the terms of the contract or this section.
4106.3The contractor shall assume responsibility for the control of District property upon:
(a)Delivery of District furnished property into the contractor’s custody or control; or
(b)Delivery to the contractor, when property is purchased by the contractor and the contract calls for reimbursement by the District. This requirement shall not alter or modify contractual requirements relating to passage of title.
4106.4Property to which the District has acquired a lien or title solely as a result of advance, progress, or partial payments shall not be subject to the requirements of §§ 4106 and 4107 of this chapter.
4106.5The contractor shall require subcontractors provided with District property under the prime contract to comply with the requirements of §§ 4106 and 4107 of this chapter. Procedures for ensuring subcontractor compliance shall be included in the contractor’s property control system.
4106.6Unless the contract or contracting officer provides otherwise, the contractor shall be relieved of property control responsibility for District property by the occurrence of any of the following:
(a)Reasonable and proper consumption of property in the performance of the contract as determined by the contracting officer;
(b)Retention by the contractor, with the approval of the contracting officer, of property for which the District has received adequate consideration;
(c)The authorized sale of property, provided the proceeds are received by the District;
(d)Shipment from the contractor’s plant, under District instructions, except when shipment is to a subcontractor or other location of the contractor; or
(e)A written determination by the contracting officer of the contractor’s liability for any property that is lost, damaged, destroyed, or consumed in excess of that normally anticipated in a manufacturing or processing operation, which is followed by reimbursement of the District of any amount required in the determination. If the property is rendered unserviceable by damage, the property shall be properly disposed of, and the determination shall refer to the documents evidencing disposal.