Overview
This section identifies a specific exemption from rental charges for contractors using Government-owned production and research property under programs approved by the Federal Emergency Management Agency (FEMA).
Key Rules
- Exemption from Rent: Standard rental requirements do not apply to specific items of Government production and research property.
- FEMA Approval: The property must be part of a general program formally approved by the Federal Emergency Management Agency.
- Compliance with FAR 45.301: To qualify for rent-free use, the property and the program must meet the specific criteria and definitions cross-referenced in FAR 45.301.
Practical Implications
- Contractors participating in FEMA-sanctioned emergency or research programs can reduce overhead costs by utilizing Government property without the financial burden of rental fees.
- Contracting officers must verify that the property use aligns with FAR 45.301 and FEMA program guidelines to ensure the rental waiver is legally applicable.