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.
Related FAR Clauses
Frequently Asked Questions
What are the key requirements for FAR 52.215-18: Reversion of Tooling and Special Tooling?
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Addresses ownership and reversion of special tooling used in contract performance. Applies to supply contracts involving special tooling.
When does FAR 52.215-18 apply to a federal contract?
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Applies to supply contracts involving special tooling.
What are the most common compliance issues with FAR 52.215-18?
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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
How should contractors approach FAR 52.215-18 in their proposals?
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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.
What related FAR clauses should contractors review alongside FAR 52.215-18?
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Contractors reviewing FAR 52.215-18 should also study related clauses: 52-215-19, 45-102. Understanding how these clauses interact helps avoid compliance gaps that can trigger contract disputes or disqualify bids.
What happens if a contractor fails to comply with FAR 52.215-18?
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Non-compliance with FAR 52.215-18 can result in contract termination for default, withholding of payments, debarment proceedings, or False Claims Act liability. Contracting officers typically issue a cure notice before termination. Contractors should consult with a contract attorney if they receive a cure notice related to this clause.