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subpart 208.73--use of government-owned precious metals

(Revised July 11, 2006)



 208.7301 Definitions.
 208.7302 Policy.
 208.7303 Procedures.
 208.7304 Refined precious metals.
 208.7305 Contract clause.

208.7301  Definitions.

As used in this subpart—


      “Defense Supply Center, Philadelphia (DSCP)” means the Defense Logistics Agency field activity located at 700 Robbins Avenue, Philadelphia, PA  19111-5096, which is the assigned commodity integrated material manager for refined precious metals and is responsible for the storage and issue of such material.


      “Refined precious metal” means recovered silver, gold, platinum, palladium, iridium, rhodium, or ruthenium, in bullion, granulation or sponge form, which has been purified to at least .999 percentage of fineness.


208.7302  Policy.

DoD policy is for maximum participation in the Precious Metals Recovery Program.  DoD components shall furnish recovered precious metals contained in the DSCP inventory to production contractors rather than use contractor-furnished precious metals whenever the contracting officer determines it to be in the Government's best interest.


208.7303  Procedures.

Follow the procedures at PGI 208.7303 (Pop-up Window or PGI Viewer Mode) for use of the Precious Metals Recovery Program.


208.7304  Refined precious metals.

See PGI 208.7304 (Pop-up Window or PGI Viewer Mode) for a list of refined precious metals managed by DSCP.


208.7305  Contract clause.


      (a)  Use the clause at 252.208-7000, Intent to Furnish Precious Metals as Government-Furnished Material, in all solicitations and contracts except—


              (1)  When the contracting officer has determined that the required precious metals are not available from DSCP;


              (2)  When the contracting officer knows that the items being acquired do not require precious metals in their manufacture; or


              (3)  For acquisitions at or below the simplified acquisition threshold.


      (b)  To make the determination in paragraph (a)(1) of this section, the contracting officer shall consult with the end item inventory manager and comply with the procedures in Chapter 11, DoD 4160.21-M, Defense Materiel Disposition Manual.




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