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Fiscal Year 2012 Department of State Health Services Contract
<br />General Provisions
<br />(Core/Subrecipient)
<br />Section 12.21 Supplies. Supplies are defined as consumable items purchase of equipment may result in loss
<br />of availability of funds for the purchase of equipment. necessary to carry out the services under this Contract
<br />including medical supplies, drugs, janitorial supplies, office supplies, patient educational supplies, software,
<br />and any items of tangible personal property other than those defined as equipment above.
<br />Section 12.22 Changes to Equipment List. All items of equipment purchased with funds under this
<br />Contract must be itemized in Contractor's equipment list as finally approved by the Department in the
<br />executed Contract. Any changes to the approved equipment list in the executed Contract must be approved in
<br />writing by Department prior to the purchase of equipment. Contractor shall submit to the contract manager
<br />assigned to the Program Attachment, a written description including complete product specifications and need
<br />justification prior to purchasing any item of unapproved equipment. If approved, Department will
<br />acknowledge its approval by means of a written amendment or by written acceptance of Contractor's Contract
<br />Revision Request, as appropriate.
<br />Section 12.23 Property Inventory and Protection of Assets. Contractor shall maintain an inventory of
<br />equipment and property described in the Other Intangible Property section of Article XIII and submit an
<br />annual cumulative report of the equipment and other property on Form GC -11 (Contractor's Property
<br />Inventory Report) to the Department's Contract Oversight and Support Section, Mail Code 1326, P.O. Box
<br />149347, Austin, Texas 78714 -9347, no later than October 15`'' of each year. The report is located on the
<br />DSHS website at http://www.dshs.state.tx.us /contracts/forms.shtm. Contractor shall maintain, repair, and
<br />protect assets under this Contract to assure their full availability and usefulness. If Contractor is indemnified,
<br />reimbursed, or otherwise compensated for any loss of, destruction of, or damage to the assets provided or
<br />obtained under this Contract, Contractor shall use the proceeds to repair or replace those assets.
<br />Section 12.24 Bankruptcy. In the event of bankruptcy, Contractor shall sever Department property,
<br />equipment, and supplies in possession of Contractor from the bankruptcy, and title must revert to Department.
<br />If directed by DSHS, Contractor shall return all such property, equipment and supplies to DSHS. Contractor
<br />shall ensure that its subcontracts, if any, contain a specific provision requiring that in the event the
<br />subcontractor's bankruptcy, the subcontractor must sever Department property, equipment, and supplies in
<br />possession of the subcontractor from the bankruptcy, and title must revert to Department, who may require that
<br />the property, equipment and supplies be returned to DSHS.
<br />Section 12.25 Title to Property. At the conclusion of the contractual relationship between the Department
<br />and Contractor, for any reason, title to any remaining equipment and supplies purchased with funds under this
<br />Contract reverts to Department. Title may be transferred to any other party designated by Department. The
<br />Department may, at its option and to the extent allowed by law, transfer the reversionary interest to such
<br />property to Contractor.
<br />Section 12.26 Property Acquisitions. Department funds must not be used to purchase buildings or real
<br />property. Any costs related to the initial acquisition of the buildings or real property are not allowable.
<br />Section 12.27 Disposition of Property. Contractor shall follow the procedures in the American Hospital
<br />Association's (AHA's) "Estimated Useful Lives of Depreciable Hospital Assets" in disposing, at-any time
<br />during or after the Contract term, of equipment purchased with the Department funds, except when federal or
<br />state statutory requirements supersede or when the equipment requires licensure or registration by the state, or
<br />when the acquisition price of the equipment is equal to or greater than $5,000. All other equipment not listed
<br />in the AHA reference (other than equipment that requires licensure or registration or that has an acquisition
<br />cost equal to or greater than $5,000) will be controlled by the requirements of UGMS. If, prior to the end of
<br />the useful life, any item of equipment is no longer needed to perform services under this Contract, or becomes
<br />General Provisions (Core Subrecipient) 2012 25
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