[Code of Federal Regulations]
[Title 48, Volume 1]
[Revised as of October 1, 2002]
From the U.S. Government Printing Office via GPO Access
[CITE: 48CFR45]

[Page 828-829]
 
            TITLE 48--FEDERAL ACQUISITION REGULATIONS SYSTEM
 
                CHAPTER 1--FEDERAL ACQUISITION REGULATION
 
PART 45--GOVERNMENT PROPERTY--Table of Contents
 
  Subpart 45.5--Management of Government Property in the Possession of 
                               Contractors
 
45.505-7  Records of real property.

    (a) The contractor shall maintain an itemized record of the 
description, location, acquisition cost, and disposition of all 
Government real property (including unimproved real property); all 
alterations, all construction work, and sites connected with such 
alteration and construction, acquired by purchase, lease, or otherwise. 
These records, including maps, drawings, plans, specifications, and 
supplementary data where necessary, shall (1) be complete, (2) show the 
original cost of the property and improvements and the cost of any 
changes and additions, and (3) be appropriately indexed.
    (b) Costs incurred by the contractor or the Government for new 
construction, including erection, installation, or assembly of 
Government real property in possession of the contractor, shall be 
capitalized in the official Government real property records and 
financial accounts maintained by the contractor for the Government.
    (c) Costs incurred for additions, expansions, extensions, 
conversions, alterations, and improvements, including applicable 
portions of capital maintenance, that increase the value, life, utility, 
capability, or serviceability of Government real property shall be 
capitalized.
    (d) Costs incurred for portable buildings or facilities specifically 
constructed for tests that involve destruction of the facility shall not 
be capitalized in the Government real property records or financial 
accounts.
    (e) Costs incurred for maintenance, repair, or rearrangement to 
maintain the Government real property in good physical condition, 
utility, capacity, or serviceability shall be charged to expense, and 
the real property records shall not be affected.

[[Page 829]]

    (f) When Government-owned real property is sold, transferred, 
donated, destroyed by fire or other cause, abandoned-in-place, or 
condemned, the financial accounts shall be reduced by the presently 
recorded cost and the real property records annotated with a supporting 
statement, including pertinent facts.