ARTICLE IX: PROPERTY MANAGEMENT

ARTICLE IX, CL. 1 - PROPERTY (APR 1984) - DEAR 970.5204-21

(a) Furnishing of Government property. The Government reserves the right to furnish any property or services required for the performance of the work under this contract.

(b) Title to property. Except as otherwise provided by the Contracting Officer, title to all materials, equipment, supplies, and tangible personal property of every kind and description purchased by the University, for the cost of which the University is entitled to be reimbursed as a direct item of cost under this contract, shall pass directly from the vendor to the Government. The Government reserves the right to inspect, and to accept or reject, any item of such property. The University shall make such disposition of rejected items as the Contracting Officer shall direct. Title to other property, the cost of which is reimbursable to the University under this contract, shall pass to and vest in the Government upon (1) issuance for use of such property in the performance of this contract, or (2) commencement of processing or use of such property in the performance of this contract, or (3) reimbursement of the cost thereof by the Government, whichever first occurs. Property furnished by the Government and property purchased or furnished by the University, title to which vests in the Government, under this paragraph are hereinafter referred to as Government property. Title to Government property shall not be affected by the incorporation of the property into or the attachment of it to any property not owned by the Government, nor shall such Government property or any part thereof, be or become a fixture or lose its identity as personalty by reason of affixation to any realty.

(c) Identification. To the extent directed by the Contracting Officer, the University shall identify Government property coming into the contractor's possession or custody, by marking and segregating in such a way, satisfactory to the Contracting Officer, as shall indicate its ownership by the Government.

(d) Disposition. The University shall make such disposition of Government property which has come into the possession or custody of the University under this contract as the Contracting Officer may direct during the progress of the work or upon completion or termination of this contract. The University may, upon such terms and conditions as the Contracting Officer may approve, sell, or exchange such property, or acquire such property at a price agreed upon by the Contracting Officer and the University as the fair value thereof. The amount received by the University as the result of any disposition, or the agreed fair value of any such property acquired by the University, shall be applied in reduction of costs allowable under this contract or shall be otherwise credited to the account to the Government, as the Contracting Officer may direct. Upon completion of the work or the termination of this contract, the University shall render an accounting, as prescribed by the Contracting Officer, of all government property which had come into the possession or custody of the University under this contract.

(e) Protection of government property. The University shall take all reasonable precautions, as directed by the Contracting Officer, or in the absence of such direction in accordance with sound industrial practice, to safeguard and protect government property in the University's possession or custody.

(f) Risk of loss of government property. The University shall not be liable for loss or destruction of or damage to government property in the University's possession unless such loss, destruction or damage results from willful misconduct or lack or good faith on the part of the University's managerial personnel, or unless such loss, destruction or damage results from a failure on the part of the University's managerial personnel to take all reasonable steps to comply with any appropriate written directive of the Contracting Officer to safeguard such property under paragraph (e) hereof. The term "University's managerial personnel" as used herein means any officer or officers of The Regents of the University of California or any person acting as Laboratory Director.

(g) Steps to be taken in event of loss. Upon the happening of any loss or destruction of or damage to government property in the possession or custody of the University, the University shall immediately inform the Contracting Officer of the occasion and extent thereof, shall take all reasonable steps to protect the property remaining, and shall repair or replace the lost, destroyed, or damaged property, unless otherwise directed by the Contracting Officer, but shall take no action prejudicial to the right of the Government to recover therefor and shall furnish to the Government, on request, all reasonable assistance in obtaining recovery.

(h) Government property for Government use only. Government property shall be used only for the performance of this contract.

(i) Property Management. The University shall maintain and administer a property management system, subject to the approval of the Contracting Officer, of accounting for and control, utilization, maintenance, repair, protection and preservation of Government property in its possession under the contract. The University's property management system shall be maintained and administered in accordance with sound business practice, and in accordance with Department of Energy Property Management Regulations and such directives or instructions which the Contracting Officer may from time to time prescribe.

ARTICLE IX, CL. 2 - INTERAGENCY FLEET MANAGEMENT SYSTEM (IFMS) VEHICLES AND RELATED SERVICES (JAN 1991) - FAR 52.251-2

ARTICLE IX, CL. 3 - LEASING OF MOTOR VEHICLES - DEAR 970.7104-5

ARTICLE IX, CL. 4 - TAGGING OF LEASED VEHICLES (APR 1984) - DEAR 952.208-7

(b) While it is the intention that vehicles leased hereunder shall operate on Federal tags, the DOE reserves the right to utilize State tags if necessary to accomplish its mission. Should State tags be required, the University shall furnish the DOE the documentation required by the State to acquire such tags.

ARTICLE IX, CL. 5 - ACQUISITION OF REAL PROPERTY (APR 1984) DEAR 952.217-70

(1) Purchase, on the Government's behalf or in the University's own name, with title eventually vesting in the Government.

(2) Lease, and the Government assumes liability for, or will otherwise pay for the obligation under the lease as a reimbursable contract cost.

(3) Acquisition of temporary interest through easement, license or permit, and the Government funds the entire cost of the temporary interest.

(b) Justification of and execution of any real property acquisitions shall be in accordance and compliance with directions provided by the Contracting Officer.

(c) The substance of this clause, including this paragraph (c), shall be included in any subcontract occasioned by this contract under which property described in paragraph (a) of this clause shall be acquired.

ARTICLE IX, CL. 6 - REQUIRED BONDS AND INSURANCE - EXCLUSION OF GOVERNMENT PROPERTY (APR 1984) * - DEAR 970.5204-32

ARTICLE IX, CL. 7 - FACILITIES MANAGEMENT (SPECIAL)

(1) All real property holdings and interests shall be planned, acquired, developed, managed, and disposed efficiently and economically, in accordance with applicable directives treated under this contract pursuant to Article XV, Clause 3, "Procedure for Treatment of Prospective DOE Directives and Extant DOE Orders," of this contract. Real property actions and contracts shall reflect sound business practice and support for DOE missions. Only real property essential to the work performed under this contract shall be acquired or retained.

(2) The University is required to maintain a record of real property and it shall be maintained on the Real Property Inventory System (RPIS II) data base referenced in the above Real Property Management Directive.

(b) Site Development Planning. The Government shall provide to the University site development guidance for the facilities and lands for which the University is responsible. Based upon this guidance, the University shall prepare, and maintain through annual updates, a long range Site Development Plan to reflect those actions necessary to keep the development of these facilities current with the needs of the Government and allow the University to successfully accomplish the work required under this contract. In developing this plan, the University shall follow the procedural guidance set forth in applicable directives treated under this contract pursuant to Article XV, Clause 3, "Procedure for Treatment of Prospective DOE Directives and Extant DOE Orders," of this contract. The University shall use the Plan to manage and control the development of facilities and lands. All plans and revisions shall be approved by the Government.

(c) General Design Criteria. The general design criteria which shall be utilized by the University in managing the site for which it is responsible under this contract are those specified in applicable directives treated under this contract pursuant to Article XV, Clause 3, "Procedure for Treatment of Prospective DOE Directives and Extant DOE Orders," of this contract. The University shall comply with these mandatory, minimally acceptable requirements for all facility design with regard to any building acquisition, new facility, facility addition, alteration, or facility lease. This includes on-site constructed buildings, pre-engineered buildings, plan fabricated modular buildings, and temporary facilities. For existing facilities, original design criteria apply to the structure in general; however, additions or modifications shall comply with applicable directives.

(d) Project Management.

(1) In the performance of this contract the University shall establish and maintain a cost effective Project Management (PM) system to plan and control project work which is generally in accordance with applicable directives treated under this contract pursuant to Article XV, Clause 3, "Procedure for Treatment of Prospective DOE Directives and Extant DOE Orders," of this contract. The system shall address, as a minimum, the following elements:
(i) Project development and establishment of baselines, which includes activities associated with conceptual design preparation and project validation;

(ii) Preparation of Environmental, Safety, and Health documentation;

(iii) Project execution, which includes the design and construction of projects;

(iv) Cost and schedule management, including cost estimating and baseline change control systems;

(v) Configuration management;

(vi) Project quality assurance;

(vii) Value engineering; and

(viii) Timely project reporting.

(2) The PM System shall be a graded management system to accommodate the total range of projects including General Plant Projects, Line Item Projects, Major Projects and Major Systems Acquisitions and Expense Funded Projects, from project inception through pre-operational activities.

(e) Maintenance Management. (Approved by The Regents of the University of California on May 21, 1993.)

(1) In its management of property, at the site, the University shall comply with the provisions of applicable directives treated under this contract pursuant to Article XV, Clause 3, "Procedure for Treatment of Prospective DOE Directives and Extant DOE Orders," of this contract, requiring the establishment and execution of a maintenance management program for all real property and related personal property (institutional property) under the University's control. The University shall maintain property for which it is accountable in a manner which promotes operational safety, environmental protection and compliance, property preservation, and cost effectiveness. Property shall be subject to a maintenance program designed to assure its ability to meet program requirements throughout the life of the property. This will include periodic examination of the property to determine any deterioration or technical obsolescence which may threaten performance or safety. The University has provided to DOE and plan for, and shall develop and implement, a maintenance program for all real property and related personal property and a graded approach for all maintenance activities by July 1, 1993. The real property and related personal property maintenance management program is set forth in Appendix E to this contract.

(2) The University shall develop and implement a maintenance program for all personal (programmatic) property and a graded approach for all maintenance activities by July 1, 1993, as set forth in the personal (programmatic) property section of Appendix E to this contract.

(3) (i) The parties agree that, upon execution of the contract modification containing this clause, Appendix E of the contract shall be jointly reviewed, modified as appropriate, and mutually agreed to by DOE and the University. If no agreement is reached by February 1, 1993, Appendix E shall be deleted from the contract and DOE Order 4330.4A will be moved to Section III of Appendix G. If agreement is reached, the parties agree to develop implementation milestones for introduction into this contract by April 1, 1993.

(ii) If agreement is not reached, the University agrees to immediately initiate the review process set forth in Appendix G for those Orders in Section III. If this process does not result in agreement by June 1, 1993, the issue will be referred to the Issues Resolution Process in Article XVI, Clause 2, for final resolution.

(4) In instances of loss or destruction of or damage to Government Property other than capital equipment in the possession of the University, the University shall act in accordance with the procedures agreed upon by the University and the Contracting Officer.

(f) Energy Management. The University shall manage the facilities and vehicle fleets for which it is responsible in an energy efficient manner in accordance with applicable directives treated under this contract pursuant to Article XV, Clause 3, "Procedure for Treatment of Prospective DOE Directives and Extant DOE Orders," of this contract. The University shall develop a 10-year energy management plan for the laboratory with annual reviews and revisions. The University shall submit an annual report on progress toward achieving the goals of the 10-year Plan for the site, and an energy conservation analysis report for each new building or building addition project.

(g) Utilities Management. The University shall conduct the on-site utilities planning, utility operations management, certify billing invoices, and provide support for DOE's utility acquisition effort in accordance with applicable directives treated under this contract pursuant to Article XV, Clause 3, "Procedure for Treatment of Prospective DOE Directives and Extant DOE Orders," of this contract. The University shall develop a short-range (5 years) and long-range (20 years) utility management plan in accordance with applicable directives treated under this contract pursuant to Article XV, Clause 3, "Procedure for Treatment of Prospective DOE Directives and Extant DOE Orders," of this contract, noted above.

(h) Capital Assets Management. The University shall manage capital assets in accordance with applicable directives treated under this contract pursuant to Article XV, Clause 3, "Procedure for Treatment of Prospective DOE Directives and Extant DOE Orders," of this contract.

(i) Any change implied or expressed to the above referenced orders in paragraphs (a), (b), (c), (d), (e), (f) and (g) shall be processed in accordance with Article XV, Clause 3, "Procedure for Treatment of Prospective DOE Directives and Extant DOE Orders," of this contract.

(j) Approvals. Where the cost thereof will be claimed for reimbursement under this contract, the University shall obtain written approval of the Contracting Officer for the following:

(1) In buildings owned or leased by the University:
(i) Building repairs;

(ii) Building construction or alterations;

(iii) Installation of equipment involving building modification.

(2) In buildings owned by the Government:

(i) Building repairs costing more than $300,000;

(ii) Building construction or alterations costing more than $300,000;

(iii) Installation of equipment where the installation costs exceed $300,000.

(3) Construction of new:

(i) Buildings costing more than $300,000 on DOE-owned land or within a parcel covered by an existing lease or occupancy agreement provided for under Appendix I hereof;

(ii) Buildings other than those within (1) above;

(iii) Roads costing more than $300,000;

(iv) Utilities and appurtenances costing more than $300,000.

For projects which exceed $300,000, the University will submit a request to the Contracting Officer describing the project containing a cost estimate and the reasons for the project. If after 60 days the Contracting Officer has not responded, then the project is approved and the University may proceed.

ARTICLE IX, CL. 8 - DISPOSITION OF EXCESS RESEARCH EQUIPMENT (SPECIAL)

ARTICLE IX, CL. 9 - REAL PROPERTY (SPECIAL)

(1) It is understood that the University and DOE have developed mutually satisfactory arrangements for the lease or occupancy of real property of the University upon which structures and other improvements financed by the Government are or will be constructed or altered. These lease and occupancy agreements are identified in Appendix I to this contract, attached hereto and made a part hereof. The rental for such lease and occupancy agreements shall be the consideration as provided for in Article V, Clause 5, "Ground Lease Payments," of this contract. These arrangements also cover the disposition of such structures and improvements. The basic terms and conditions applicable to arrangements for property of the University known as the Wilson Tract, Plots "O" and "M" and the regular University campus (herein deemed to include the Bailey Tract and two sections of State University Tract) are set forth in Appendix I. It is understood that, except as provided in Appendix I, DOE shall have no obligation to restore the premises with respect to such structures and improvements.

(2) It is understood that with respect to construction and alterations financed by the Government to University-owned buildings and structures under this contract, the University, upon termination or by mutual agreement at any time prior thereto, shall elect whether (i) to retain the benefit of such construction or alteration, in which case the University shall return to or credit the Government with the portion of the reimbursement by the Government for its expenditures therefor determined by negotiation between the University and DOE to be fair and proper, or (ii) to have such premises restored to substantially the same condition as prior to such alteration or construction, in which case the University shall retain all such reimbursement and the Government shall pay the net cost of such restoration; provided that as to any such alteration or construction commenced after October 1, 1962, the Government shall be under no obligation to restore or bear costs of restoration except as otherwise agreed upon.

(b) Lease and Occupancy by DOE of Real Property Owned by the University s Responsibility for Environmental Restoration and Remedial Work. Upon termination or expiration of this contract or any lease or occupancy agreements (see Appendix I hereto), DOE shall be responsible for complying with applicable federal, state and local laws, regulations, or orders requiring investigation, monitoring, cleanup, containment, restoration, removal, or other remedial activity with respect to any hazardous substances present in the soil, ground water, or buildings as a result of activities conducted during the term of this contract or any prior contract modifications or during the term of any said lease or occupancy agreements.

ARTICLE IX, CL. 10 - CAMPUS BUILDING SPACE AND EQUIPMENT (SPECIAL)

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