Common use of Disposition of Equipment or Property Clause in Contracts

Disposition of Equipment or Property. Recipients must not procure real property under a fixed amount agreement. Real property means land, including land improvements, structures, and appurtenances, but excludes movable machinery and equipment. Personal property is any tangible or intangible property other than real property. Depending on the activities funded and milestones established by the fixed amount agreement, a recipient may procure equipment or personal property in order to accomplish a milestone. The distinction between whether purchase of the equipment or personal property is a milestone or is one possible means by which the recipient may accomplish a milestone is important for certain aspects of the agreement. Unless a milestone is itself the purchase of the equipment or personal property, milestones must not list equipment or personal property a recipient may potentially purchase to accomplish the milestone, but the costs of such equipment or personal property may be included in the budget from which milestone payment amounts are estimated and negotiated. Regardless of whether the equipment or personal property is listed in or as a milestone, the fixed amount agreement must state that title to the equipment or personal property vests in the recipient upon acquisition with the condition that the recipient must use the equipment or personal property for the agreement as long as it is needed for such. If a milestone under a fixed amount agreement requires the recipient to procure equipment or personal property, and the requirement is specifically provided in the milestone, then the agreement must include disposition instructions for the equipment or property. For additional guidance, see ADS 308mad, Fixed Amount Agreements to Public International Organizations.

Disposition of Equipment or Property. Recipients must not procure real property under a fixed fixed-amount agreement. Real property means land, including land improvements, structures, and appurtenances, but excludes movable machinery and equipment. Personal property is any tangible or intangible property other than real property. Depending on the activities funded and milestones established by the fixed amount agreement, a recipient may procure equipment or personal property in order to accomplish a milestone. The distinction between whether purchase of the equipment or personal property is a milestone or is one possible means by which the recipient may accomplish a milestone is important for certain aspects of the agreement. Unless a milestone is itself the purchase of the equipment or personal property, milestones must not list equipment or personal property a recipient may potentially purchase to accomplish the milestone, but the costs of such equipment or personal property may be included in the budget from which milestone payment amounts are estimated and negotiated. Regardless of whether the equipment or personal property is listed in or as a milestone, the fixed amount agreement must state that title to the equipment or personal property vests in the recipient upon acquisition with the condition that the recipient must use the equipment or personal property for the agreement as long as it is needed for such. If a milestone under a fixed amount agreement requires the recipient to procure equipment or personal property, and the requirement is specifically provided in the milestone, then the agreement must include disposition instructions for the equipment or property. For additional guidance, see ADS 308mad, Fixed Amount Agreements to Public International Organizations.