Addresses ownership and reversion of special tooling used in contract performance.
Applicability: Applies to supply contracts involving special tooling.
Key Requirements
Identify special tooling used in contract performance
Understand government ownership of tooling created with government funds
Plan for tooling delivery or return upon contract completion
Address depreciation and wear allowances in pricing
Common Issues & Pitfalls
Not accounting for tooling costs in pricing because you assume you keep the tools
Misunderstanding what constitutes 'special tooling' vs. general equipment
Not planning for tooling return/delivery logistics
Overlooking provisions for tooling inspection and acceptance
Contractor Guidance for Your Bid
If your contract involves manufacturing, verify whether you'll create special tooling. Government typically owns tooling developed at government expense. Price your proposal accordingly—include reasonable depreciation and ensure your cost models account for tooling delivery. This is a common oversight in manufacturing proposals.