Appendix C to Part 1130 - Terms and Conditions for PROP Article III, “Use and Disposition of Real Property”
2:1.2.8.6.14.6.64.6.37 : Appendix C
Appendix C to Part 1130 - Terms and Conditions for PROP Article
III, “Use and Disposition of Real Property”
Unless a DoD Component substitutes wording in Section A, as
provided in § 1130.305, a DoD Component's general terms and
conditions must use the following wording for PROP Article III.
PROP Article III. Use and Disposition of Real Property. (December
2014)
Section A. Use of real property.
1. You must use real property acquired or improved under this
award for the originally authorized purpose as long as needed for
that purpose. During that time, you may not:
a. Dispose of the property except, with the approval of the
award administration office, to acquire replacement property under
this award, in which case you must use the proceeds from the
disposition as an offset to the cost of the replacement property;
or
b. Encumber the title or other interests in the property without
the approval of the award administration office identified in this
award.
2. During the time that the real property is used for the
originally authorized purpose, you may make the property available
for use on other projects or programs, but only if that use will
not interfere with the property's use as needed for its originally
authorized purpose.
a. First preference must be given to other projects or programs
supported by DoD Components and second preference to those
supported by other Federal agencies.
b. Third preference is for other projects or programs not
currently supported by the Federal Government. You should charge
user fees for use of the property in those cases, if it is at all
practicable.
3. When the real property is no longer needed for the originally
authorized purpose, with the written approval of the award
administration office, you may delay final disposition of the
property to use it on other federally sponsored projects or
programs. A condition for the award administration office's
approval is that the other projects or programs have purposes
consistent with those authorized for support by the DoD Component
that made the award under which the property was acquired or
improved.
Section B. Disposition of real property. When you no
longer need real property for the originally authorized purpose,
you must obtain disposition instructions from the award
administration office, except as provided in paragraph A.3 of this
article. Those instructions will provide for one of the following
three alternatives, which are that you:
1. Retain title after compensating us for the Federal interest
in the property, which is to be computed as specified in the
definition of “Federal interest.”
2. Sell the property and compensate us for the Federal interest
in the property, as described in 2 CFR 200.311(c)(2).
3. Transfer title to us or a third party we designate, as
described in 2 CFR 200.311(c)(3).