41 U.S.C. § 112 : US Code - Section 112: Removal and storage of materials

Search 41 U.S.C. § 112 : US Code - Section 112: Removal and storage of materials

(a) Termination inventory
It is the policy of the Government, upon the termination of any
war contract, to assure the expeditious removal from the plant of
the war contractor of the termination inventory not to be retained
or sold by the war contractor.
(b) Statement on material of inventory
Any war contractor may submit to the contracting agency concerned
or to any other Government agency designated by the Administrator
of General Services, one or more statements showing the materials
which such war contractor claims to be termination inventory under
one or more war contracts and desires to have removed by the
Government. Such statements shall be prepared in such form and
detail, shall be submitted in such manner, through the prime
contractor or otherwise, and shall be supported by such
certificates or other data, as may be prescribed under this
chapter.
(c) Removal and storage by Government agency
Within sixty days after the submission of any such statement by a
war contractor, or such shorter period as may be prescribed under
this chapter, or within such longer period as the war contractor
may agree, the Government agency concerned (1) shall arrange, upon
such terms and conditions as may be agreed, for the storage by the
war contractor on his own premises or elsewhere of all such claimed
termination inventory which the war contractor does not retain or
dispose of, except any part which may be determined not to be
allocable to the terminated war contract or contracts, or (2) shall
remove from the plant or plants of the war contractor all of such
claimed termination inventory not retained, disposed of, or stored
by the war contractor or determined not to be allocable to the
terminated war contract or contracts.
(d) Removal and storage by war contractor
Upon the failure of the Government so to arrange for storage by
the war contractor or to remove any termination inventory within
the period specified under subsection (c) of this section, the war
contractor, subject to regulations prescribed under this chapter,
may remove some or all of such termination inventory from his plant
or plants and may store it on his own premises or elsewhere for the
account and at the risk and expense of the Government, using
reasonable care for its transportation and preservation. If any war
contractor intends so to remove any claimed termination inventory,
he shall deliver to the Government agency concerned written notice
of the date fixed for removal and a statement showing the
quantities and condition of the materials so to be removed,
certified on behalf of the war contractor to have been prepared in
accordance with a concurrent physical inventory of such materials.
Such notice and statement shall be delivered at least twenty days
in advance of the date fixed for removal and may be delivered
before or after the expiration of the period specified under
subsection (c) of this section. If the Government agency fails to
check such materials, at or before the time of their removal by the
war contractor, a certificate of the war contractor specifying the
materials shown on such statement which were so removed, and filed
with the Government agency concerned within thirty days after the
date fixed for removal, shall constitute prima facie evidence
against the United States as to the quantities and condition of the
materials so removed, and the fact of their removal.
(e) Acquisition by Government agency of inventory material;
liability
Notwithstanding any other provisions of law, but subject to
subsection (h) of this section, the contracting agency concerned or
the Administrator of General Services, or any Government agency
designated by him, on behalf of the United States, may, by the
exercise of any contract rights or otherwise, acquire and take
possession of any termination inventory of any war contractor, and
any materials removed by the Government or stored for its account
under subsections (c) and (d) of this section, whether or not such
materials are finally determined not to constitute termination
inventory. With respect to any such materials, the Government shall
be liable to any war contractor concerned only for their return to
such war contractor or for their disposal value at the time of
their removal or for the proceeds realized by the Government from
their disposal, at the election of the Government agency concerned,
unless the Government agency and the war contractor agree or have
agreed on a different basis. Any amount so paid or payable to a war
contractor for materials allocable to a terminated war contract
shall be credited against the termination claim under such contract
but shall not otherwise affect the amount due on the claim, unless
the Government agency concerned and the war contractor agree or
have agreed otherwise. Any materials to which the Administrator of
General Services takes title under this section shall be delivered
for disposal to any appropriate Government agency authorized to
make such disposal.
(f) Postponement or delay of termination settlement
No contracting agency shall postpone or delay any termination
settlement beyond the period specified in subsection (c) of this
section for the purpose of awaiting disposal by the war contractor
or the Government of any termination inventory reported in
accordance with subsection (b) of this section.
(g) Government-owned machinery
Whenever any war contractor no longer requires, for the
performance of any war contract, any Government-owned machinery,
tools, or equipment installed in his plant for the performance of
one or more war contracts, the Government agency concerned, upon
written demand by the war contractor, and within sixty days after
such demand or such other period as may be prescribed under this
chapter, and upon such conditions as may be so prescribed, shall
remove or provide for the removal of such machinery, tools, or
equipment from such plant, unless the Government agency concerned
and the war contractor, by facilities contract or otherwise, have
made or make other provisions for the retention, storage,
maintenance, or disposition of such machinery, tools or equipment.
The Government agency concerned may waive or release on behalf of
the United States any obligation of the war contractor with respect
to such machinery, tools, or equipment upon such terms and
conditions as the agency deems appropriate. Upon the failure of the
Government so to remove or provide for removal of any such
machinery, tools, or equipment, the war contractor, subject to
regulations prescribed under this chapter, may remove all or part
of such machinery, tools, or equipment from his plant and may store
it on his own premises or elsewhere, for the account and at the
risk and expense of the Government, using reasonable care for its
transportation and preservation.
(h) Limitation on Government acquisition of inventories
Nothing in this chapter shall limit or affect the authority of
the Department of the Army, Department of the Air Force, Navy
Department, or the Department of Transportation, respectively, to
take over any termination inventories and to retain them for their
use for any purpose or to dispose of such termination inventories
for the purpose of war production, or to authorize any war
contractor to retain or dispose of such termination inventories for
the purpose of war production.
(i) Removal and storage by war contractor at own risk
Nothing in this section shall be construed to prevent the removal
and storage of any termination inventory by any war contractor, at
his own risk, at any time after termination of any war contract to
which it is allocable.