Archived - Standard Acquisition Clauses and Conditions Manual - L - Production Tooling and Special Test Equipment
Version: 06-2023
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Table of contents
Production Tooling and Special Test Equipment
L0001T
1991-06-01CancelledL0001TARCHIVED Tooling
Remarks – Recommended Use of SACC Item
Use the following clause for articles of a special nature which may require special production tooling.
Legal text for SACC item
1. The Contractor shall provide production tooling as listed in the Schedule attached at a price, of $ _____. 2. Title to the tooling and any replacement shall vest in Canada. The Contractor shall maintain and repair such tooling during the course of the Contract at its expense. 3. The Contractor shall take reasonable and proper care of the tooling and act as custodian of such tooling at no direct cost to Canada for a period of _____ days from the Contract completion date. If inhibiting and packaging charges are involved, then these shall be the subject of a new contract.
L0002T
1991-06-01CancelledL0002TARCHIVED Tooling
Remarks – Recommended Use of SACC Item
Use the following clause for articles of a special nature which may require special production tooling.
Legal text for SACC item
If a Contract is awarded, the Contractor shall mark each item of special production tooling and shall submit an inventory describing each item, its use and its cost. The Contractor shall verify such inventory by Statutory Declaration made before a Notary Public or a Commissioner for Oaths.
L0003C
2008-05-12ActiveL0003CSpecial Production Tooling and Special Test Equipment
Remarks – Recommended Use of SACC Item
Use the following clause in contracts for the Department of National Defence (DND) when Special Production Tooling and Special Test Equipment (SPT/STE) is applicable. This set of conditions pertains to cases where Canada expects the contractor to acquire or manufacture SPT and STE under the contract. This materiel is not catalogued in DND and becomes the property of Canada.
Contracting officers must indicate the name of the Technical Authority, Procurement Authority and Disposal, Sales, Artefacts and Loans (DSAL) Authority in the contract, as applicable.
Do not use this clause for Optimized Weapon Systems Management contracts.
Legal text for SACC item
- The Contractor must provide the Special Production Tooling and Special Test Equipment (SPT/STE) to perform the Work under the Contract as listed in Annex _____.
- The Contractor must identify each item of SPT/STE as Canada's property by affixing a plate, or by etching or by stamping. The plate or marking must include reference to Public Works and Government Services Canada (PWGSC) file number and contract number, and a number for the SPT/STE to identify the individual item.
- The Contractor must provide an inventory in electronic format on a Production Tooling Control (PTC) sheet for each piece of SPT/STE paid for by the Department of National Defence. The control sheet must include:
- a 5 X 7 inch photograph of the SPT/STE - the standard of measurement (ruler) must be included in the photo;
- the Government Control Number which indicates the item is government owned, relates to a specific piece of SPT/STE and sequential numbers;
- the contract number and date;
- the NATO Stock Number and Part Number;
- a full description of the item;
- quantity;
- invoice price;
- reference number to the technical data sheet;
- original manufacturer;
- stock code and NATO Stock Number and item name of the product the SPT/STE is used to produce.
- The PTC sheet must be verified, signed and dated by an authorized representative of the company. The Contractor must provide the PTC sheet to the Contracting Authority who will forward it to the ____________ (insert "Technical" or "Procurement") Authority, and to the Disposal, Sales, Artefacts, & Loans (DSAL) Authority.
- Ownership of the SPT/STE and any replacement belongs to Canada and the SPT/STE remains Canada's property at all times.
- The Contractor must take reasonable and proper care of the SPT/STE while it is in its possession.
- The Contractor must provide written notice to the _____ (insert "Technical" or "Procurement") Authority at least sixty (60) calendar days before the date when the SPT/STE will no longer be required for use in the performance of the Contract. The Contractor must act as custodian of the SPT/STE at no direct cost to Canada. Disposal or redistribution instructions will be provided by Canada when the notice is received or at the end of the Contract. Preparation for the transport of dangerous goods, packaging, and crating charges for redistribution of SPT/STE must be in accordance with the instructions provided by the Contracting Authority.
- The Contractor must submit a separate invoice accompanied by a PTC sheet. The Contractor must provide the following information:
- the Contractor's name;
- the date, and the PWGSC file number and contract number;
- the supplies or components in the manufacture of which the SPT/STE is used;
- the quantity, the item number (reference paragraph 3 above), the production part number to which the SPT/STE relates and a brief description of the SPT/STE; and,
- the price of each item of SPT/STE, where available, and the total amount.
- The Contractor must forward the original and two (2) copies of the invoice accompanied by the original and two (2) copies of the PTC sheet to the Contracting Authority. The Contractor must verify this inventory once every two years in accordance with the Canadian Forces Supply Manual document A-LM-007-014/AG-001.
2002-12-13SupersededL0003CARCHIVED Tooling
1998-02-16SupersededL0003CARCHIVED Tooling
1991-06-01SupersededL0003CARCHIVED Tooling
L0004C
2008-05-12ActiveL0004CSpecial Production Tooling and Special Test Equipment - Optimized Weapon Systems Management
Remarks – Recommended Use of SACC Item
Use the following clause in Optimized Weapon Systems Management contracts for the Department of National Defence (DND) when the contractor will provide the Special Production Tooling and Special Test Equipment (SPT/STE).
The listing of SPT/STE will be used by DND authorities to determine proper disposition instructions later in the program.
Contracting officers must specify the name of the Technical Authority and Procurement Authority in the contract.
Legal text for SACC item
- The Contractor must provide the Special Production Tooling and Special Test Equipment (SPT/STE) required under the Contract. The SPT/STE acquired from commercial sources or manufactured by the Contractor will be managed within the Contractor's inventory management system and must be available to Canada under the Contract.
- For cost reimbursement on the purchase of SPT/STE, the Contractor must provide a listing with SPT/STE numbers, descriptions, quantity, cost, and original equipment manufacturer to the Procurement Authority.
- The Contractor must identify each item of SPT/STE as Canada's property by affixing a plate, or by etching or by stamping. The plate or marking must include reference to Public Works and Government Services Canada file number and contract number and a number to identify the individual item of SPT/STE.
- Ownership of the SPT/STE and any replacement belongs to Canada.
- The Contractor must take reasonable and proper care of the SPT/STE while it is in its possession and must maintain and replace the SPT/STE during the period of the Contract at its expense so that, at the end of the Contract, the Contractor must possess a complete set of the SPT/STE in a usable condition.
- The Contractor must provide written notice to the ________ (insert "Technical" or "Procurement") Authority at least sixty (60) calendar days before the date when the SPT/STE will no longer be required for use in the performance of the Contract. The Contractor must act as custodian of the SPT/STE at no direct cost to Canada. Disposal or redistribution instructions will be provided by Canada when the notice is received or at the end of the Contract. Preparation for the transport of dangerous goods, packaging, and crating charges for redistribution of SPT/STE must be in accordance with the instructions provided by the Contracting Authority.
2002-12-13SupersededL0004CARCHIVED Tooling
1998-02-16SupersededL0004CARCHIVED Tooling
1991-06-01SupersededL0004CARCHIVED Tooling
L0005C
2008-05-12ActiveL0005CSpecial Production Tooling and Special Test Equipment Owned by Canada - Optimized Weapon Systems Management
Remarks – Recommended Use of SACC Item
Use the following clause in Optimized Weapon Systems Management contracts for the Department of National Defence (DND) when Canada owns and will provide Special Production Tooling and Special Test Equipment (SPT/STE) to the contractor.
The listing of SPT/STE will be used by DND authorities to determine proper disposition instructions later in the program.
Legal text for SACC item
- Canada will provide the Special Production Tooling and Special Test Equipment (SPT/STE) to the Contractor under the Contract. The SPT/STE provided by Canada will be recorded and managed under a Department of National Defence Loan Agreement.
- The Contractor must identify all SPT/STE owned by Canada as Canada's property by affixing a plate, or by etching or by stamping. The plate or marking must include reference to Public Works and Government Services Canada file number and contract number and a number for the SPT/STE to identify the individual item.
1991-06-01SupersededL0005CARCHIVED Tooling Owned by Canada
L0006C
1991-06-01CancelledL0006CARCHIVED Tooling Owned by Canada
Remarks – Recommended Use of SACC Item
Use the following clause in firm price contracts where Canada owns special production tooling already in the Contractor's possession. Enter fill-in data.
Legal text for SACC item
1. Canada shall provide the special production tooling (hereinafter
referred to as "the tooling") acquired under Contract Number _____
and required to perform the Work under this Contract.
2. Title to the tooling shall remain vested in Canada, and title to any
replacement thereof shall vest in Canada.
3. The Contractor shall take reasonable and proper care of the tooling
and shall maintain and replace the tooling during the course of the
Contract at its expense so that, at the conclusion of the Contract,
the Contractor shall possess a complete set of the tooling in a
usable condition.
4. The Contractor shall give written notice to _____ at least sixty (60)
days before the date when the tooling will no longer be required for use
in the performance of any contract with Canada. If no disposal
instructions are received from the Minister, the Contractor shall act as
custodian of the tooling at no direct cost to Canada for the period of _____
days from the date on which the Contract was completed. However, if
inhibiting, packaging and crating charges are involved, these will be
the subject of a new contract with this Department.
L0007C
1991-06-01CancelledL0007CARCHIVED Tooling Owned by Canada
Remarks – Recommended Use of SACC Item
Use the following clause in cost reimbursable contracts where Canada owns and provides special production tooling. Enter fill-in data.
Legal text for SACC item
1. Canada shall provide the special production tooling (hereinafter
referred to as "the tooling") required to perform the Work under
this Contract as listed in the Schedule attached.
2. Title to the tooling shall remain vested in Canada and title to any
replacement thereof shall vest in Canada.
3. The Contractor shall give written notice to _____ at least sixty (60)
days before the date when the tooling will no longer be required for use
in the performance of any contract with Canada. If no disposal
instructions are received from the Minister, the Contractor shall act as
custodian of the tooling at no direct cost to Canada for a period of _____
days from the Contract completion date. If inhibiting, packaging and
crating charges are involved, these will be the subject of a new
contract with this Department.
L0008C
1991-06-01CancelledL0008CARCHIVED Tooling Owned by Canada
Remarks – Recommended Use of SACC Item
Use the following clause in cost reimbursable contracts where Canada owns special production tooling already in the Contractor's possession. Enter fill-in data.
Legal text for SACC item
1. Canada shall provide the special production tooling (hereinafter
referred to as "the tooling") acquired under Contract Number _____
and required to perform the Work under this Contract.
2. Title to the tooling shall remain vested in Canada, and title to any
replacement shall thereof vest in Canada.
3. The Contractor shall give written notice to _____ at least sixty (60)
days before the date when the tooling will no longer be required for use
in the performance of any contract with Canada. If no disposal
instructions are received from the Minister, the Contractor shall act as
custodian of the tooling at no direct cost to Canada for a period of _____
days from the Contract completion date. However, if inhibiting,
packaging and crating charges are involved, these will be the subject of
a new contract with this Department.
L0009C
1991-06-01CancelledL0009CARCHIVED Production or Tooling
Remarks – Recommended Use of SACC Item
Legal text for SACC item
No production or tooling will take place until official drawings are received from the Directorate of Documentation and Drawing Services, DDS7-2, National Defence Headquarters.
L5000C
1991-06-01CancelledL5000CARCHIVED Special Test Equipment
Remarks – Recommended Use of SACC Item
Use the following clause in those cases where Special Test Equipment is being acquired on a cost basis. See SPM Directive 2056. Enter fill-in data. Where applicable, after the word audit in paragraph (a), add "plus a profit of _____ percent on the cost of that portion of the equipment which the Contractor manufactures in a plant it owns or operates. The Contractor shall not be entitled to any profit on the equipment of any portion purchased or otherwise acquired by its subcontractors."
Legal text for SACC item
(a) The Contractor shall provide the Special Test Equipment (hereinafter referred to as "the equipment") required to perform the Work under this Contract as listed in the Schedule attached or to be attached to the acceptance of this Contract. After the Minister approves, Canada shall pay for this equipment on the basis of the Contractor's actual costs, exclusive of general and administrative overhead, in accordance with the Contract Cost Principles, DSS-MAS 1031-2, as determined by government audit. Where the Contractor submits only an incomplete Schedule of the equipment with the acceptance of the Contract, the Contractor shall furnish a complete Schedule as soon as possible to _____ . (b) The Contractor shall show the costs of equipment as separate items on the monthly progress payment claims. (c) Supplemental General Conditions, DSS-MAS 1030, Capital Expenditures, shall form part of this Contract and the inventory and marking instructions mentioned in Section 5 of the said Supplemental General Conditions shall be obtained from the _____ . The Contractor shall report lost or damaged equipment on form DSS-MAS 1478, Report of Destroyed, Damaged or Missing Crown Property/Equipment. The Contractor shall report items of equipment when no longer required on form DSS-MAS 1476, Notice of Surplus Crown Property/Equipment, to : _____ . (d) In no event shall Canada pay the Contractor for equipment a total amount in excess of $_____, unless and until Canada authorizes additional commitments.
L5001C
2020-05-28ActiveL5001CSurplus Government Property
Remarks – Recommended Use of SACC Item
Use the following clause in contracts when there is anticipation that government property (contract specific) such as platform(s), component(s), production tooling, special test equipment and spare parts, may become surplus to the client’s requirements during the period of performance of the contract(s).
Upon contract award, a copy of the contract must be provided to the PWGSC GCSurplus/GCMil office by email at gcmil@pwgsc-tpsgc.gc.ca .
Legal text for SACC item
If, during the period of or at the time of completion of the Contract, Canada or the Contractor in consultation with Canada, determines that government property such as platform(s), component(s), production tooling, special test equipment and spare parts is surplus, the Contractor will be required to provide a report of the identified surplus materiel to the Contracting Authority by providing a spreadsheet that identifies all surplus government property. The spreadsheet must include as a minimum, the quantity, unit of issue, description of items including part number, location of property and classification of property. The classification of property field must identify if the surplus property must be classified as a controlled or a non-controlled good, which is either new serviceable, used serviceable or repairable, used unserviceable or scrap. When in use by the client department, the Contractor must complete and submit form CF152 (or equivalent), Material Adjustment Report, to the Contracting Authority.
If some or all of the surplus assets are determined to be surplus to Canada’s requirement (not required by Canada), then Canada may, at their discretion, offer the Contractor the right of first refusal to purchase the assets at fair market value. This transaction is to be negotiated with GCSurplus/GCMil through the PWGSC Report of Surplus divestment process or in accordance with the Surplus Crown Assets Act (R.S.C., 1985, c. S-27).