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 tain readiness of the property, are to be indicated D1, D2, D3, etc.; the lower figures rep-
resenting the most desirable.
7.4.2 Type "C" Annual Inspection Summary
1. TYPE OF PROPERTY. A Type "C" Annual Inspection Summary (Figure 7-3, 7-4)
shall be used to report conditions for the following types of property:
a. Navy-owned Industrial Facilities which, during peacetime are leased, with
termination provisions, for civilian operations; are maintained as an unused standby; or
are being operated under a facilities contract.
b. Privately-owned Industrial Plants (Part of the Departmental Plant Reserve) in
which the Navy has a legal right, through the National Security Clause or similar
provisions, to occupancy, use or priority for production, if needed.
c. National Industrial Plant Reserve Plants.
2. INSPECTION. The data for preparing a Type "C" Annual Inspection Summary are
obtained from a one-time comprehensive inspection, rather than a result of regular in-
spections. The summary shall provide a detailed report for use of the major claimant.
Generally, the inspection scope should be sufficient to determine the general main-
tenance level attained and to indicate major deficiencies. Where a National Security
Clause is contained in the sales document, the inspection should be sufficiently detailed
to ensure that the owner fulfills his maintenance obligations.
a. Inspection Party. It is desirable that the inspector be accompanied by a repre-
sentative of the lessee or owner, and a representative of the major claimant. In those in-
stances where the property, lease, permit, license or sales contract is under the
cognizance of the General Services Administration (GSA), an authorized GSA repre-
sentative should accompany the inspector. In those instances where the maintenance
obligation responsibility between the lessee, or owner, and the Navy may be difficult to
ascertain, the inspector should be accompanied by a representative of the EFD, Real Es-
tate Division, who shall provide, or obtain, prompt interpretation of maintenance
responsibilities.
b. Inspector's Recommendations. The inspector's recommendations, as shown in
the summary, shall be made in accordance with maintenance levels for industrial plants;
terms of the lease, permit, license or sales contract; and condition report for leased
property, if one was prepared. When a deficiency is noted, it is desirable that the parties
concerned agree as to deficiency correction responsibility. If the parties concerned can-
not agree as to deficiency correction responsibilities, all pertinent facts shall be noted in
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