TABLE OF CONTENTS
SUBPART 1845.1 GENERAL
1845.102 Policy.
1845.102-70 NASA policy.
1845.102-71 Solicitation and
review procedures.
1845.104 Review and
correction of contractors' property control systems.
1845.106 Government
property clauses.
1845.106-70 NASA contract
clauses and solicitation provision.
1845.106-71 Plant reconversion and plant clearance.
SUBPART 1845.3
PROVIDING GOVERNMENT PROPERTY
TO CONTRACTORS
1845.301 Definitions.
1845.302 Providing
facilities.
1845.302-1 Policy.
1845.302-2 Facilities
contracts.
1845.302-70 Securing approval of
facilities projects.
1845.302-71 Determination and
findings.
SUBPART 1845.4 CONTRACTOR USE AND RENTAL OF
GOVERNMENT PROPERTY
1845.402 Authorizing use
of Government production and research property.
1845.403 Rental -- Use
and Charges clause.
1845.405 Contracts with
foreign governments or international organizations.
1845.405-70 NASA procedures.
1845.406 Use of Government
production and research property on independent research and development programs.
1845.406-70 NASA policy.
1845.407 Non-Government
use of plant equipment.
SUBPART 1845.5
MANAGEMENT OF GOVERNMENT
PROPERTY IN THE POSSESSION OF CONTRACTORS
1845.502 Contractor
responsibility.
1845.502-1 Receipts for
Government property.
1845.502-70 Contractor-acquired
property.
1845.505 Records and
reports of Government property.
1845.505-14 Reports of
Government property.
1845.508 Physical
inventories.
SUBPART 1845.6 REPORTING, REDISTRIBUTION,
AND DISPOSAL OF CONTRACTOR INVENTORY
1845.604 Restrictions on
purchase or retention of contractor inventory.
1845.606 Inventory
schedules.
1845.606-1 Submission.
1845.607 Scrap.
1845.607-1 General.
1845.607-170 Contractor's approved
scrap procedure.
1845.607-2 Recovering precious
metals.
1845.608 Screening of
contractor inventory.
1845.608-1 General.
1845.608-6 Waiver of
screening requirements.
1845.610
1845.610-3 Proceeds of sale.
1845.610-4 Contractor
inventory in foreign countries.
1845.613 Property
disposal determinations.
1845.615 Accounting for
contractor inventory.
SUBPART 1845.70 RESERVED
SUBPART 1845.71 FORMS PREPARATION
1845.7101 Instructions for
preparing NASA Form 1018.
1845.7101-1 Property classification.
1845.7101-2 Transfers of
property.
1845.7101-3 Unit acquisition
costs.
1845.7101-4 Types of deletions
from contractor property records.
1845.7101-5 Contractor's
privileged financial and business information.
1845.7102 Instructions for
preparing DD Form 1419.
SUBPART 1845.72 CONTRACT PROPERTY MANAGEMENT
1845.7201 Definitions.
1845.7202 General.
1845.7203 Delegations of
property administration and plant clearance.
1845.7204 Retention of
property administration and plant clearance.
1845.7205 Functional
oversight of property administration and plant clearance.
1845.7206 Responsibilities
of property administrators and plant clearance officers.
1845.7206-1 Property
administrators.
1845.7206-2 Plant clearance
officers.
1845.7207 Declaration of
excess property.
1845.7208 Closure of
contracts.
1845.7208-1 Completion or
termination.
1845.7208-2 Final review and
closing of contracts.
1845.7209 Special subjects.
1845.7209-1 Government property
at alternate locations of the prime contractor and subcontractor plants.
1845.7209-2 Loss, damage, or
destruction of Government property.
1845.7209-3 Loss, damage, or
destruction of Government property while in contractor's possession or control.
1845.7209-4 Financial reports.
1845.7210 Contractor
utilization of Government property.
1845.7210-1 Utilization surveys.
1845.7210-2 Records of surveys.
PART
1845
GOVERNMENT PROPERTY
1845.102-70 NASA
policy.
Government
property shall not be provided to contractors unless all other alternatives are
not feasible. The decision to provide Government property to contractors
(whether Government-furnished or contractor-acquired) shall be made only after
careful consideration of all relevant factors. Among these factors are
the following:
(a) Providing
Government property to contractors increases the Government's administrative
burden and requires recordkeeping and personnel.
(b)
Providing property may dilute the contractor's overall responsibility and
weaken guarantees, end-item delivery requirements, and other contract terms.
(c)
Providing property may make NASA responsible for delays in that the Agency
assumes responsibility for scheduling delivery of the property.
1845.102-71 Solicitation and review procedures.
(a) Each solicitation, as applicable, shall
include the following:
(1) A list of any Government property available to be
furnished, quantities, locations, conditions, and any related information.
(2) A
requirement that offerors identify any Government
property in their possession proposed for use during contract performance. The
items, quantities, locations, acquisition costs, and proposed rental terms must
be provided, along with identification of the Government contract under which
the property is accountable.
(3) A
requirement that requested Government provided facilities be described and
identified by the classifications in 1845.7101-1.
(4) A requirement
that offerors provide, if applicable, the date of the
last Government property control system review, a summary of the findings and
recommendations, and contractor corrective actions taken.
(b) The contracting officer shall provide a copy
of the solicitation (or contract if no solicitation is used) to the center
supply and equipment management officer (SEMO) for review for acquisitions with
an estimated cost greater than $1,000,000, or for acquisitions over $50,000
when work is to be performed at the center, existing Government property is
being furnished, or contract acquisition of Government property is required or
permitted.
1845.104
Review and correction of contractors' property control systems.
(a) Property administration is normally
delegated to DOD. When property administration is not delegated to DOD, NASA
shall conduct the review of the contractor's property administration system in
accordance with DOD
4161.2-M, Manual for the Performance of Contract Property
Administration.
1845.106
Government property clauses.
(b) If NASA contemplates taking title to
contractor acquired property under paragraph (c) of the clause at FAR 52.245-2, Government Property (Fixed-Price
Contracts), the contracting officer shall list the applicable property in the
contract as deliverable items.
1845.106-70
NASA contract clauses and solicitation provision.
(a) The contracting officer shall
insert the clause at 1852.245-70,
Contractor Requests for Government-Owned Equipment, in all solicitations and contracts
that have the potential for contractor acquisition of equipment for the account
of the Government that is not listed as a specific contract deliverable. See 1845.7102
for instructions on preparing DD Form 1419.
(b)(1)
The contracting officer shall insert the clause at 1852.245-71,
Installation-Accountable Government Property, in solicitations and contracts
when Government property is to be made available to a contractor working on a
NASA installation, and the Government will maintain accountability for the
property. The contracting officer shall list in the clause the applicable
property user responsibilities. For purposes of this clause, NASA installations
include local off-site buildings owned or directly leased by NASA when the
contractor does not have authority to acquire property for the account of the
Government.
(2) Use of
this clause is subject to the SEMO's concurrence that
adequate installation property management resources are available for oversight
of the property in accordance with all applicable NASA installation property
management directives.
(3) The
contracting officer shall identify in the contract the nature, quantity, and
acquisition cost of such property and make the property available on a
no-charge basis.
(4) The
contracting officer shall use the clause with its Alternate I if the SEMO
requests that the contractor be restricted from use of the center central
receiving facility for the purposes of receiving contractor-acquired property.
(5)
Contracting officers shall list separately in the contract any property
provided under a FAR 52.245 Government property clause that remains accountable
to the contractor during its use on the contract (such as property used at the
contractor's or a subcontractor's off-site facility) and which is not also
subject to the clause at 1852.245-71.
The contracting officer shall address any specific maintenance considerations
(e.g., requiring or precluding use of an installation calibration or repair
facility) elsewhere in the contract.
(6) See
1845.106-70(e).
(c) The contracting officer shall insert the
clause at 1852.245-72,
Liability for Government Property Furnished for Repair and Services, in
fixed-price solicitations and contracts (except for experimental,
developmental, or research work with educational or nonprofit institutions,
where no profit is contemplated) for repair, modification, rehabilitation, or
other servicing of Government property, if such property is to be furnished to
a contractor for that purpose and no other Government property is to be
furnished. The contracting officer shall not require additional insurance under
the clause unless the circumstances clearly indicate advantages to the
Government.
(d) The contracting officer shall insert the
clause at 1852.245-73,
Financial Reporting of NASA Property in the Custody of Contractors, in cost
reimbursement contracts unless all property to be provided is subject to the
clause at 1852.245-71,
Installation-Accountable Government Property. The clause shall also be included
in other types of contracts when it is known at award that property will be
provided to the contractor or that the contractor will acquire property title
to which will vest in the Government prior to delivery.
(e) When approved by the Logistics Management Division of the Headquarters Office of
Infrastructure and Management (Code OJG), the contracting officer shall
insert the clause at 1852.245-74,
Contractor Accountable On-Site Government Property, in lieu of the clause at 1852.245-71,
in solicitations and contracts when accountability rests with an on-site
contractor. The contracting officer's written request for approval shall
include a determination of costs that will be (1) avoided (e.g., additional
costs to the installation's property management systems and staffing) and (2)
incurred (e.g., reimbursable costs of the contractor to implement, staff, and
operate separate property management systems on-site, and resources needed for
performance of, or reimbursement for, property administration) under contractor
accountability.
(f) The contracting officer shall insert the
clause at 1852.245-75,
Title to Equipment, in solicitations and contracts where the clause at FAR 52.245-2
with its Alternate II or 52.245-5 with its Alternate I is used.
(g) The contracting officer shall insert the
clause at 1852.245-76,
List of Government-Furnished Property, in solicitations and contracts if the
contractor is to be accountable under the contract for Government property.
(h) The contracting officer shall insert the
clause at 1852.245-77,
List of Installation-Accountable Property and Services, in solicitations and
contracts that require performance at the center and authorize contractor use
of property within the physical borders of the center.
(i) The contracting
officer shall insert the provision at 1852.245-79,
Use of Government-Owned Property, in all solicitations when Government property
may be used by the contractor.
(j) The contracting officer shall insert the
clause at 1852.245-80,
Use of Government Production and Research Property on a No-Charge Basis, in solicitations
and contracts when Government property (real property, commercially available
equipment, special test equipment, or special tooling) accountable under
another contract(s) is authorized for use.
1845.106-71
Plant reconversion and plant clearance.
The Assistant Administrator for Procurement (Code HS)
is the approval authority for any solicitation provision or contract clause
that would defer negotiation of costs for plant reconversion
or plant clearance until after award.
Subpart 1845.3--Providing Government Property to Contractors
1845.301
Definitions.
"Facilities", as defined in the FAR,
also include real property and commercially available equipment, whether owned
or leased by NASA or reimbursed as a cost under the contract.
"Provide", as used in this subpart in
such phrases as "Government property provided to the contractor" and
"Government-provided property," means either to furnish, as in
"Government-furnished property," or to permit to be acquired, as in
"contractor-acquired property." See FAR 45.101 for definitions of
"contractor-acquired property" and "Government-furnished
property."
1845.302 Providing facilities.
1845.302-1
Policy.
(a) In addition to the exceptions listed
in FAR 45.302-1(a), existing NASA-owned facilities
(whether contractor acquired or Government furnished) being used by a
contractor may be retained for the remainder of the contract period and
furnished under any follow-on contract for the same effort if the contracting
officer determines that to do so would be in the best interest of the
Government, provided that:
(i) The facilities are required to
accomplish the purpose of the contract;
(ii) The contract contains a provision requiring the contractor to
replace any of the facilities that reach the end of their useful life during
the contract period, or which are beyond economical repair, if the facilities
are still needed for contract performance. Such replacements shall be made with
contractor-owned facilities. The contract provision shall also expressly
prohibit contractor acquisitions of facility items for the Government, unless
specifically authorized by the contract or consent has been obtained in writing
from the contracting officer pursuant to FAR
45.302-1(a);
(iii) Consideration
has been given to any alternative uses by Government personnel within the
agency, in consultation with the center industrial property officer; and
(iv)
The contracting officer documents the file with a detailed explanation of why
continued furnishing of the facilities is in the best interest of the
Government.
(a)(4)
(A) The procurement officer is designated to
make the determinations and findings (D&F) authorizing the use of
Government facilities. See 1845.302-71
for D&F format.
(B) The requirements for a D&F and a prospective contractor's
written statement asserting inability to obtain facilities are not applicable
in the circumstances listed under FAR 45.302-1(d). In these cases, the
contracting officer shall document the contract file with the rationale for
providing the facilities, including the reason for not requiring the contractor
to provide them.
1845.302-2
Facilities contracts.
Unless termination would be detrimental to the
Government's interests, contracting officers shall terminate facilities
contracts when the Government property is no longer required for the
performance of Government contracts or subcontracts. Contracting officers shall
not grant the contractor the unilateral right to extend the time during which
it is entitled to use the property provided under the facilities contract.
1845.302-70
Securing approval of facilities projects.
(a) Pursuant to NMI
7330.1, Delegation of Authority - Approval Authorities for Facility
Projects, the contracting officer must approve facilities projects involving
leasing, construction, expansion, modification, rehabilitation, repair, or
replacement of real property.
(b) The contracting officer's written
authorization is required before any change is made in the scope or estimated
cost of any facilities project.
1845.302-71
Determination and findings.
(a) Procedure. Determination and
findings (D&F) required under FAR 45.302-1(a)(4) and 1845.302-1(a)(4) shall be prepared
by the contracting officer and approved by the procurement officer. Prior to
approval, concurrence must be obtained from the SEMO to ensure agreement on the
use of the Government facilities by the contractor. D&Fs
shall address individual types of facilities to be provided to the contractor.
Reference to specific variations in quantities of items to be provided should
be included in the D&F if additional requirements are anticipated. A
separate D&F is required before adding new types of items or significant
changes in quantity or before adding any new work to the contract that requires
additional Government facilities.
(b) Format. A sample format
follows:
(Format)
National
Aeronautics and Space
Administration
Determination and Findings
Decision to Provide Government Facilities
On the basis of the following findings and determinations, Government-owned facilities may be provided to [insert the name of the contractor] pursuant to the authority of FAR 45.302-1(a)(4).
Findings
1. The [insert the name of the contracting activity] and the contractor (have entered)/(proposed to enter) into Contract No. [insert the contract number] . (Include the following information: Type of contract, contract value, and a brief description of the scope of work performed under the contract.)
2. (Justify that Government facilities are needed for performance under the contract. The justification shall demonstrate either (i) that the contract cannot be fulfilled by any other means, or (ii) that it is in the public interest to provide the facilities. It is imperative that the justification be fully substantiated by evidence.)
3. (If the contract effort cannot be fulfilled by any other means, indicate why the contractor cannot provide the facilities. For example, due to financial constraints, the contractor has demonstrated inability to acquire the facilities; or, even though the contractor is willing and financially able to acquire these facilities for its own account, the contractor has stated that time will not permit making arrangements to obtain timely delivery to meet NASA requirements. If timely delivery is the problem, state when the contractor will replace the Government facilities with contractor-owned facilities. Address leadtime, validate the contractor's claims, and state that private financing was sought and either not available or not advantageous to the Government. If private financing was not advantageous to the Government, provide justification. Indicate other alternatives considered and reasons for rejection.)
4. (Describe the types of facilities to be provided and any variation in quantities of items based on functional requirements. Explain how these facilities pertain to the scope of work to be completed. State that the contract cannot be accomplished without the specified facility items being provided. Include an estimate of the value of the facilities and a statement that no facilities items under $10,000 unit cost will be provided unless the contractor is a nonprofit, on-site, or the facilities are only available from the Government.)
5. (Indicate whether the property will be accountable under this contract or a separate facilities contract.)
Determination
For the reasons set forth above, it is hereby determined that the Government-owned facilities identified herein will be provided to the contractor.
Procurement Officer Date
(End of format)
Subpart 1845.4--Contractor Use and Rental of Government Property
1845.402
Authorizing use of Government production and research property.
(a) (i)
A NASA contracting officer desiring to authorize use of Government property
under the cognizance of another contracting officer shall obtain that
contracting officer's concurrence.
(ii) NASA
contracting officers having cognizance over NASA property may authorize its use
on contracts of other agencies if such use will not interfere with NASA's
primary purpose for the property and will not extend beyond the expected
expiration or completion date of the NASA contract.
1845.403
Rental -- Use and Charges clause.
(a) The Center Director is designated as the
authority to make the determinations on modified rental rates.
1845.405 Contracts with foreign governments or international organizations.
1845.405-70
NASA procedures.
(a) NASA policy is to recover a fair share of
the cost of Government production and research property if such property is
used in performing services or manufacturing articles for foreign countries or
for international organizations.
(b) The prior written approval of the Assistant Administrator
for Procurement (Code H) is required for the use of Government production and
research property on work for foreign countries or for international
organizations. The Logistics Management Office of the Headquarters Office of
Management Systems (Code JG), the Office of General Counsel (Code G), and the
Headquarters Office of External Relations (Code I) are required concurrences.
(c) Contracting officers shall forward requests
for approval to Code HS, along with a summary of the circumstances involved,
including as a minimum --
(1) The name
of the requesting contractor;
(2) The
number of the contract under which the equipment is controlled;
(3) A
description of the equipment;
(4) The name
of the foreign contractor and the relationship of the foreign contractor to its
government or to any international organization;
(5) A
description of the articles to be manufactured or services to be performed;
(6) A
statement that the intended use will not interfere with the current or
foreseeable requirements of the United States or require use of the equipment
beyond the expected expiration or completion date of the NASA contract;
(7) A
statement that the use of Government property is consistent with the best
interests of the United States;
(8) A
statement that such use is legally authorized; and
(9) Any
evidence of endorsement by another agency of the U.S. Government based on
national security or foreign policy of the United States (e.g., an approved
license or agreement from the Department of State or Department of Commerce).
(d) Use, if approved, shall be subject to rent
in accordance with FAR
45.403.
1845.406 Use of Government production and research property on independent research and development programs.
1845.406-70
NASA policy.
The contracting officer should not authorize
contractor use of Government property for independent research and development
on a rent-free basis except in unusual circumstances when it has been
determined by the contracting officer that --
(a)
Such use is clearly in the best interests of the Government (for example, the
project can reasonably be expected to be of value in specific Government
programs); and
(b)
No competitive advantage will accrue to the contractor through such use
(see FAR 45.201).
1845.407
Non-Government use of plant equipment.
For
NASA, the coverage in FAR 45.407, applies to all equipment, not just
plant equipment.
(a)
(i) The
Assistant Administrator for Procurement (Code HS) is the approval authority for
non-Government use of equipment exceeding 25 percent.
(ii) The
percentage of Government and non-Government use shall be computed on the basis
of time available for use. For this purpose, the contractor's normal work
schedule, as represented by scheduled production shift hours, shall be used.
All equipment having a unit acquisition cost of less than $25,000 at any single
location may be averaged over a quarterly period. Equipment having a unit
acquisition cost of $25,000 or more shall be considered on an item-by-item
basis.
(iii) Approval
for non-Government use of less than 25 percent shall be for a period not
exceeding 1 year. Approval for non-Government use in excess of 25 percent shall
not be for less than 3 months.
(iv)
Requests for the approval shall be submitted to Code HS at least 6 weeks in
advance of the projected use and shall include--
(A) The
number of equipment items involved and their total acquisition cost; and
(B) An itemized listing of equipment having an acquisition cost of
$25,000 or more, showing for each item the nomenclature, year of manufacture,
and acquisition cost.
Subpart 1845.5--Management of Government Property in the Possession of
Contractors
1845.502 Contractor responsibility.
1845.502-1
Receipts for Government property.
Receipts for Government property shall comply with the
instructions for preparing NASA Form 1018, NASA Property in the Custody of
Contractors (see 1845.7101).
1845.502-70
Contractor-acquired property.
All contractor-acquired property must be authorized by
the contract and is subject to a determination by the contracting officer that
it is allocable to the contract and reasonably necessary. The acquisition (and
fabrication) of Government property is further subject to the following
conditions, depending on category of property:
(a) Facilities.
(1) Prior
contracting officer approval, if the facilities are not already specifically
described in the contract as contractor-acquired.
(2)
Submission of DD Form 1419, DOD Industrial Plant Requisition, or equivalent
format, and return of Certificate of Nonavailability.
(3)
Submission of the written statement prescribed by FAR
45.302-1(a)(4).
(b) Special test equipment.
(1)
Contracting officer approval 30 days in advance if the equipment is not
identified in the solicitation or contract.
(2)
Submission of DD Form 1419, or equivalent format, and return of Certificate of Nonavailability.
(c) Special tooling.
(1) If the
contract contains a Subcontracts clause, advance notification to the
contracting officer and contracting officer consent if required by that clause.
(2) If the
contract is a fixed-price contract, submission of the list to the contracting
officer within 60 days after delivery of the first production end items (or
later as prescribed by the contracting officer), unless the tooling is already
identified in the solicitation.
(3)
Submission of DD Form 1419 or equivalent format and return of Certificate of Nonavailability.
(d) Material. If the
contract contains a Subcontracts clause, advance notification to the contracting
officer and contracting officer consent if required by that clause.
(e) Agency-peculiar property.
(1) If the
contract contains a Subcontracts clause, advance notification to the
contracting officer and contracting officer consent if required by that clause.
(2)
Submission of DD Form 1419, or equivalent format, and return of Certificate of Nonavailability.
1845.505 Records and reports of Government property.
1845.505-14
Reports of Government property.
(b) When the clause at 1852.245-73,
Financial Reporting of NASA Property in the Custody of Contractors, is included
in the contract, the contractor shall submit NASA Form 1018, NASA Property in
the Custody of Contractors, in accordance with the instructions on the form and
1845.71.
Contractor property control systems shall distinguish between Government
furnished and contractor acquired property for purposes of reporting the
acquisition cost in the property classifications shown in FAR
45.505-14(a)(1) through (5).
1845.508
Physical inventories.
NASA contractors shall reconcile inventories with the
official property records and submit reports to the property administrator
within 30 days after inventory completion. The contractor shall investigate all
losses of property and discoveries of unrecorded property to determine the
causes of the discrepancy and actions needed to prevent its recurrence.
Subpart 1845.6--Reporting, Redistribution, and Disposal of Contractor
Inventory
1845.604
Restrictions on purchase or retention of contractor inventory.
(1) No contractor may sell contractor
inventory to persons known by it to be NASA or DOD personnel who have been
engaged in administering or terminating NASA contracts.
(2)
(i) The contractor's or subcontractor's
authority to approve the sale, purchase, or retention of Government property on
a contract which is excess to needs after Government reutilization screening at
less than cost by a subcontractor, and the subcontractor's authority to sell,
purchase, or retain such property at less than cost with the approval of the
contractor or next higher-tier subcontractor does not include authority to
approve --
(A) A sale by a subcontractor to the contractor, the next higher-tier
subcontractor, or their affiliates; or
(B) A sale, purchase, or retention by a subcontractor affiliated with
the contractor or next higher-tier subcontractor.
(ii) Each
excluded sale, purchase, or retention requires the written approval of the
plant clearance officer.
1845.606-1 Submission.
See 1845.608
for intra-agency screening of excess contractor-held property.
1845.607-170
Contractor's approved scrap procedure.
(a) When a contractor has an approved scrap
procedure, certain property may be routinely disposed of in accordance with
that procedure and not processed under this section.
(b) The center property administrator is
authorized to approve the contractor's scrap procedure. Before approval, the
plant clearance officer shall review the procedure, particularly regarding
sales. The plant clearance officer shall ensure that the procedure contains
adequate requirements for inspecting and examining items to be disposed of as
scrap. When the contractor's procedure does not require physical segregation of
Government-owned scrap from contractor-owned scrap and separate disposal, care
shall be exercised to ensure that a contract change that generates a large
quantity of property does not result in an inequitable return to the
Government. In such a case, the property administrator shall make a determination
as to whether separate disposition of Government scrap would be appropriate.
(c) A plant clearance case shall not be
established for property disposed of through the contractor's approved scrap
procedure.
(d) Property in scrap condition, other than that
disposed of through the contractor's approved scrap procedure, shall be
reported on appropriate inventory schedules for disposition in accordance with
the provisions of FAR Part 45 and 1845.
1845.607-2
Recovering precious metals.
(b) Silver, gold, platinum, palladium, rhodium,
iridium, osmium, and ruthenium; scrap bearing such metals; and items containing
recoverable quantities of them shall be reported to the Defense Reutilization
and Marketing Service, DRMS-R, Federal Center, Battle Creek, MI 49017-3092, for
instructions regarding disposition.
1845.608 Screening of contractor inventory.
1845.608-1
General.
(a) Property Disposal Officers (PDOs) are the center focal points for intra-agency
reutilization screening. PDOs shall acknowledge
receipt of inventory schedules within 30 days and simultaneously provide the
plant clearance officer a NASA screening completion/release date. Screening shall
be accomplished in accordance with NPR 4300.1.
1845.608-6
Waiver of screening requirements.
The Director of the Logistics Management Office of the
Headquarters Office of Management Systems and Facilities (Code JLG) is
designated to authorize exceptions to intra-agency screening requirements.
1845.610
1845.610-3
Proceeds of sale.
The plant clearance officer shall maintain an open
suspense record until verifying that credit has been applied, unless another
Government representative has specifically assumed this responsibility.
1845.610-4
Contractor inventory in foreign countries.
NASA procedures for disposal are in NPR 4300.1, NASA Personal Property Disposal Procedures and Guidelines.
1845.613
Property disposal determinations.
The center property disposal officer (PDO) shall
review the determinations in accordance with NPR 4300.1.
1845.615
Accounting for contractor inventory.
A copy of Standard Form 1424, Inventory Disposal
Report, shall be provided to the center industrial property officer or the PDO.
Subpart 1845.71--Forms Preparation
1845.7101 Instructions for
preparing NASA Form 1018.
NASA
must account for and report assets in accordance with 31 U.S.C. 3512 and 31
U.S.C. 3515, Federal Accounting Standards, and Office of Management and Budget
(OMB) instructions. Since contractors
maintain NASA’s official records for its assets in their possession, NASA must
obtain periodic data from those records to meet these requirements. Changes in Federal Accounting Standards and
OMB reporting requirements may occur from year to year, requiring contractor
submission of supplemental information with the NASA Form (NF) 1018. The specific Statements of Federal Financial
Accounting Standards (SFFAS) to be used for property records are SFFAS No. 3
“Accounting for Inventory and Related Property”, SFFAS No. 6 “Accounting for
Property, Plant and Equipment”, SFFAS No. 10 “Accounting for Internal Use
Software”, and SFFAS No. 11 “Amendments to PP&E: Definitions” issued by the
Federal Accounting Standards Advisory Board.
Classifications of property, related costs to be reported, and other
reporting requirements are discussed in this subpart. NF 1018 (see 1853.3)
provides critical information for NASA financial statements and property
management. Accuracy, completeness, and
timeliness of the report are critical to many aspects of NASA’s operations.
1845.7101-1
Property Classification.
(a) General.
(1) Contractors shall report costs in the classifications on NF 1018, as described in this section. The cost of heritage assets and obsolete property will be reported on the NF 1018 under the appropriate classification. Supplemental reporting may also be required.
(2)(i) Heritage assets are property, plant and equipment that possess one or more of the following characteristics:
(A) Historical or natural significance;
(B) Cultural, educational or artistic importance; or
(C) Significant architectural characteristics.
(ii) Examples of NASA heritage assets include buildings and structures designated as National Historic Landmarks as well as aircraft, spacecraft and related components on display to enhance public understanding of NASA programs. Heritage assets which serve both a heritage and government operation function are considered multi-use when the predominant use is in general government operations. Multi-use heritage assets will not be considered heritage assets for NF 1018 supplemental reporting purposes.
(3) Obsolete property is property for which there are no current plans for use in its intended purpose (i.e. it no longer provides service to NASA operations). Examples of obsolete property are items in configurations which are no longer required or used by NASA or items held for engineering evaluation purposes only. NASA may have approved the retention of these items for programmatic reasons even though they have no current plans for use.
(b) Land. Includes
costs of land and improvements to land. Contractors shall report land
with a unit acquisition cost of $100,000 or more.
(c) Buildings. Includes
costs of buildings, improvements to buildings, and fixed equipment required for
the operation of a building which is permanently attached to and a part of the
building and cannot be removed without cutting into the walls, ceilings, or
floors. Contractors shall report buildings with a
unit acquisition cost of $100,000 or more. Examples of fixed equipment required
for functioning of a building include plumbing, heating and lighting equipment,
elevators, central air conditioning systems, and built-in safes and vaults.
(d) Other Structures and Facilities.
Includes costs of acquisitions and improvements of real property (i.e.
structures and facilities other than buildings); for example, airfield pavements,
harbor and port facilities, power production facilities and distribution
systems, reclamation and irrigation facilities, flood control and navigation
aids, utility systems (heating, sewage, water and electrical) when they serve
several buildings or structures, communication systems, traffic aids, roads and
bridges, railroads, monuments and memorials, and nonstructural improvements
such as sidewalks, parking areas, and fences. Contractors shall report other
structures and facilities with a unit acquisition cost of $100,000 or more and
a useful life of two years or more.
(e) Leasehold improvements.
Includes NASA-funded costs of improvements to leased buildings, structures, and
facilities, as well as easements and right-of-way, where NASA is the lessee or
the cost is charged to a NASA contract. Contractors shall report leasehold
improvements with a unit acquisition cost of $100,000 or more and a useful life
of two years or more.
(f)
Construction in Progress. Includes costs of work in process for the
construction of Buildings, Other Structures and Facilities, and
Leasehold Improvements to which NASA has title, regardless of value.
(g) Equipment. Includes costs of commercially available
personal property capable of stand-alone use in manufacturing supplies,
performing services, or any general or administrative purpose (for example,
machine tools, furniture, vehicles, computers, software, test equipment,
including their accessory or auxiliary items).
Software integrated into and necessary to operate another item of
Government property is considered to be an auxiliary item (see FAR 45.501) and
should be considered part of the item of which it is an integral part. Other software to which NASA has title shall
be classified as an individual item of equipment for reporting purposes if it
has a useful life of 2 years or more and acquisition cost of $1,000,000 or more (also see
1845.7101-3(g)). Enhancement costs for
existing software should be added to the software acquisition cost if the
enhancement results in significant additional capability beyond that for which
the software was originally developed (i.e. a capability that was not included
in the original software specifications, the total cost of the enhancement is
$1,000,000 or more, or the expected useful life of the enhanced software is 2
years or more). Software licenses are
excluded. Contractors shall separately
report:
(1)
the amount for all items with a unit acquisition cost of $100,000 or more and a
useful life of two years or more; and
(2) All other items.
(h)
Special Tooling. Includes costs of equipment and manufacturing aids (and
their components and replacements) of such a specialized nature that, without
substantial modification or alteration, their use is limited to development or
production of particular supplies or parts, or performance of particular
services (see FAR
45.101). Examples include jigs, dies, fixtures, molds, patterns,
taps and gauges. Contractors shall separately report:
(1)
the amount for all items with a unit acquisition cost of $100,000 or more and a
useful life of two years or more; and
(2)
All other items.
(i) Special Test Equipment. Includes costs of
equipment used to accomplish special purpose testing in performing a contract,
and items or assemblies of equipment (see FAR
45.101). Contractors shall separately report:
(1)
the amount for all items with a unit acquisition cost of $100,000 or more and a
useful life of two years or more; and
(2) All other items.
(j)
Material. Includes costs of NASA-owned property held in inventory
regardless of whether or not it is unique to NASA programs,
that may become a part of an end item or be expended in performing a
contract. Examples include raw and processed material, spares, parts,
assemblies, small tools and supplies. Material that is part of work-in-process
is not included. Contractors shall report the amount for all Materials in
inventory, regardless of unit acquisition cost.
(k) Agency-Peculiar Property. Includes costs of completed
items, unique to NASA aeronautical and space programs, which are capable of
stand-alone operation. Examples
include research aircraft, reusable space vehicles, ground support equipment,
prototypes, and mock-ups. The amount of
property, title to which vests in NASA as a result of progress payments to
fixed price subcontractors, shall be included to reflect the pro rata cost of
undelivered agency-peculiar property.
Completed end items not related to the International Space Station or
the Space Shuttle program which otherwise meet the definition of
Agency-Peculiar Property,
and are destined for permanent operation in space, such as
satellites and space probes, shall not be reported. Contractors shall separately report:
(1)
the amount for all items with a unit acquisition cost of $100,000 or more and a
useful life of two years or more; and
(2) All other items.
(l) Contract Work-in-Process.
Work-in-process (WIP) consists of property items under construction
(i.e. not complete). It includes costs
of all work-in-process regardless of value, and excludes costs of completed
items reported in other categories. While the costs of WIP for International
Space Station and Space Shuttle components should be included as WIP,
satellites and space probes and their components should be excluded from WIP as
those items will be accounted for by NASA.
1845.7101-2
Transfers of property.
A transfer is a change in
accountability between and among prime contracts, NASA Centers, and other
Government agencies (e.g., between contracts of the same
(a) Approval and Notification. The contractor must obtain approval of the
contracting officer or designee for transfers of property off the prime
contract before shipment. Each shipping document must be signed by the
contracting officer or designee demonstrating such approval. Each shipping document must contain contract
numbers, shipping references, property classifications in which the items are
recorded (including Federal Supply Classification group (FSC) codes for
equipment), unit acquisition costs (as defined in 1845.7101-3, Unit Acquisition
Cost), original Government acquisition dates for items with a unit acquisition
cost of $100,000 or more and a useful life of two years or more, and any other
appropriate identifying or descriptive data.
Where the DD Form 250, Material Inspection and Receiving Report, is
used, the FSC code will be part of the national stock number (NSN) entered in
Block 16 or, if the NSN is not provided, the FSC alone shall be shown in Block
16. The original Government acquisition
date shall be shown in Block 23, by item.
Other formats, such as the DD Form 1149, Requisition and
Invoice/Shipping Document, should be clearly annotated with the required
information. Unit acquisition costs
shall be obtained from records maintained pursuant to FAR Part 45 and this Part 1845, or, for uncompleted items
where property records have not yet been established, from such other record
systems as are appropriate such as manufacturing or engineering records used
for work control and billing purposes.
Shipping contractors shall furnish a copy of the formally approved
shipping document to the cognizant property
administrator. Shipping and receiving
contractors shall promptly submit copies of shipping and receiving documents to
the Center Deputy Chief Financial Officer, Finance, responsible for their
respective contracts when accountability for NASA property is transferred to,
or received from, other contracts, contractors, NASA Centers, or Government
agencies.
(b) Reclassification. If property
is transferred to another contract or contractor, the receiving contractor
shall record the property in the same property classification and amount
appearing on the shipping document. For example, when a contractor receives an
item from another contractor that is identified on the shipping document as
equipment, but that the recipient intends to incorporate into special test
equipment, the recipient shall first record the item in the equipment account
and subsequently reclassify it as special test equipment. Reclassification of
equipment, special tooling, special test equipment, or agency-peculiar property
requires prior approval of the contracting officer or a designee.
(c)
Incomplete documentation. If
contractors receive transfer documents having insufficient detail to properly
record the transfer (e.g., omission of property classification, FSC, unit
acquisition cost, Government acquisition date, required signatures, etc.) they
shall request the omitted data directly from the shipping contractor or through
the property administrator as provided in FAR 45.505-2. The contracting officer shall assist the
Government Property Administrator and the receiving contractor to obtain all
required information for the receiving contractor to establish adequate
property records.
1845.7101-3
Unit acquisition cost.
(a)
The unit acquisition cost shall include all costs incurred to bring the
property to a form and location suitable for its intended use. The following is representative of the types of costs that
shall be included, when applicable:
(1)
Amounts paid to vendors or other contractors.
(2)
Transportation charges to the point of initial use.
(3)
Handling and storage charges.
(4)
Labor and other direct or indirect production costs (for assets produced or
constructed).
(5)
Engineering, architectural, and other outside services for designs, plans,
specifications, and surveys.
(6)
Acquisition and preparation costs of buildings and other facilities.
(7)
An appropriate share of the cost of the equipment and facilities used in
construction work.
(8)
Fixed equipment and related installation costs required for activities in a
building or facility.
(9)
Direct costs of inspection, supervision, and administration of
construction contracts and construction work.
(10)
Legal and recording fees and damage claims.
(11)
Fair values of facilities and equipment donated to the Government.
(b)
Acquisition cost shall include, where appropriate, for contractor acquired
property, related fees, or a pro rata portion of fees, paid by NASA to the
contractor. Situations where inclusion of fees in the acquisition cost
would be appropriate are those in which the contractor designs, develops, fabricates
or purchases property for NASA and part of the fees paid to the contractor by
NASA are related to that effort.
(c) Acquisition cost shall
be developed using actual costs to the greatest extent possible, especially
costs directly related to fabrication such as labor and materials. Where estimates are used, there must be a
documented methodology based on a historical basis. All acquisition costs shall be properly documented,
supported and retained. Supporting
documentation shall be made available upon request.
(d)
The use of weighted average methodologies is acceptable for valuation of
Material.
(e)
Contractors shall report unit acquisition costs using records that are part of
the prescribed property or financial control system as provided in this
section. Fabrication costs shall be based on approved systems or procedures and
include all direct and indirect costs of fabrication.
(f) Only modifications that improve an
item’s capacity or extend its useful life two years or more and that cost
$100,000 or more shall be reported on the NF 1018 on the $100,000 & Over line. The costs of any other modifications, excluding
routine maintenance, will be reported on the Under
$100,000 line. If an item’s original unit acquisition cost is less than $100,000,
but a single subsequent modification costs $100,000 or more, that modification
only will be reported as an item $100,000 or more on subsequent NF 1018s. The
original acquisition cost of the item will continue to be included in the under
$100,000 total. The quantity for the modified item will remain "1"
and be reported with the original acquisition cost of the item. If an item’s
acquisition cost is reduced by removal of components so that its remaining
acquisition cost is under $100,000, it shall be reported as under $100,000.
(g)
Software acquisition costs include software costs incurred up through
acceptance testing and material internal costs incurred to implement the
software and otherwise make the software ready for use. Costs incurred after acceptance testing are
excluded. License, maintenance,
training, and data conversion costs are also excluded. If the software is purchased as part of a
package, the costs will need to be segregated in such manner as to ensure that
the excluded costs (maintenance, training, etc.) are not reported as part of
the software’s acquisition cost.
Enhancement costs for existing software should be added to the
acquisition cost if the enhancement results in significant additional capability
beyond that for which the software was originally developed (i.e. a capability
that was not included in the original software specifications), the total cost
of the enhancement is $1,000,000 or more, and the expected useful life of the
enhanced software is 2 years or more.
Include the same types of cost as indicated above under new
software. Costs incurred solely to
repair a design flaw or perform minor upgrades should not be included.
(h) The computation of work in
process (WIP) shall include all direct and indirect costs of fabrication,
including associated systems, subsystems, and spare parts and components
furnished or acquired and charged to work in process pending incorporation into
a finished item. These types of items make up what is sometimes called
production inventory and include programmed extra units to cover replacement
during the fabrication process (production spares). Also included are deliverable items on which
the contractor or a subcontractor has begun work, and materials issued from
inventory. The computation of WIP shall incorporate the other requirements for
unit acquisition cost as outlined in paragraphs (a) through (e) of this
section. In addition, acquisition cost
of property furnished by the Government, which has been incorporated in the
property item under construction or in process of fabrication, should be
included. Do not include costs for
operation or repairing existing completed property items. Once the property is complete, include all
the costs outlined above in its acquisition value in the property record. The WIP values are inception to date until
such time as the WIP is completed. It
does not include future costs.
1845.7101-4
Types of deletions from contractor property records.
Contractors shall report the types of deletions from contract property records
as described in this section.
(a)
Lost, Damaged or Destroyed. Deletion amounts that result from relief
from responsibility under FAR
45.503 granted during the reporting period.
(b) Transferred in Place. Deletion amounts that result from transfer of property to a
follow-on prime contract or other prime contract with the same contractor.
(c)
Transferred to
(d)
Transferred to Another
(e)
Transferred to Another Government Agency. Deletion
amounts that result from transfer of property to another Government agency.
(f)
Purchased at Cost/Returned for Credit. Deletion amounts that result from
contractor purchase or retention of
contractor acquired property as provided in FAR
45.605-1, or from contractor returns to suppliers under FAR
45.605-2.
(g)
Disposed of Through Plant Clearance Process. Deletions other than
transfers within the Federal Government, e.g., donations to eligible
recipients, sold at less than cost, or abandoned/directed destruction, or
trade-ins.
(h) Other.
Types of deletion other than those reported in paragraph (a) through (g) of
this section such as those resulting from reclassifications (e.g. from equipment
to agency-peculiar property).
1845.7101-5
Contractor's privileged financial and business information.
If
a transfer of property between contractors involves disclosing costs of a
proprietary nature, the contractor shall furnish unit acquisition costs only on
copies of shipping documents sent to the shipping and receiving NASA Centers.
1845.7102
Instructions for preparing DD Form 1419.
(a) The contractor shall enter the essential
information covering Sections I and II before submission of DD Form 1419, DOD
Industrial Plant Equipment Requisition, to the Industrial Property Officer
(IPO). The IPO shall review each submission for completeness and authenticity.
Incomplete or invalid requests shall be returned for correction.
(b) When a suitable item is allocated in Section
IV, inspection of the equipment is recommended. Notification of acceptance or
rejection of the item offered must reach NASA within 30 days after allocation.
A copy of the DD Form 1419, or equivalent format, will serve as the clearance
document to inspect the equipment at the storage site. Note acceptance or
rejection of the item, without inspection or after inspection in Section VI. If
the item is acceptable, execute Section VII. Cite the NASA appropriation symbol
where applicable in Section VII.
(c) The IPO shall assign a requisition number to
each DD Form 1419, or equivalent format request.
(d) Next will be a four-digit entry comprised of
the last digit of the current calendar year and the Julian date of the year.
For example, April 15, 1997, would be written as 7095 (April 15 being the 95th
day of the year). The last entry will be a four-digit number from 0001 to 9999
to sequentially number requisition forms prepared on the same date. For
example, the ninth requisition prepared on April 15, 1997, would be 7095-0009,
preceded by the FEDSTRIP/MILSTRIP Activity Address Code. When submitting
subsequent DD Forms 1419, or equivalent format, related to the item requested,
the IPO shall use the same requisition number and add the alpha code to the end
of the requisition number to indicate a second or third action on the basic
request. Alpha "A" would indicate a second request, "B" a
third, etc. In this manner, all actions, correspondence, etc., relative to a
given request can be identified at all levels of processing by the use of the
requisition number.
(e) Detailed directions for completing the DD
Form 1419 follow. The contractor may elect to provide the required data in an
equivalent format, which complies with these directions.
Section I
Item
Description. To ensure adequate screening, the item description must
be complete. For single-purpose equipment or general-purpose equipment with special
features, requests must contain detailed descriptive data as to size and
capacities, setting forth special operating features or particular operations
required to be performed by the item.
Block 1. Not applicable.
Block 2. Enter the manufacturer's name and Federal Supply Code for
manufacturer (Cataloging Handbook H4-1) of the item requested.
Block 3. Enter the manufacturer's model, style, or catalog number
assigned to the equipment being requisitioned. Always use the model number, if
available. The style number is the next preference. Enter "None" in
this block if the model, style or catalog number is not known.
Block 4. Enter the first four digits of the National Stock Number, if
known.
Block 5. Not applicable.
Block 6. Self-explanatory.
Block 7. Place an "X" in the applicable block to indicate
whether you desire to physically inspect the item before acceptance.
Block 8. Self-explanatory.
Block 9. Enter the complete description of the item. Continue the
description in Block 53 if additional space is needed.
Section II.
Block 10. Enter the contractor's name, street address, city, state, and
zip code from which the requisition is being initiated. The address should be
the one to which inquiries of a technical nature will be referred. Specify the
telephone number of an individual who will respond to inquiries concerning the
request.
Block 11. Enter the contract number or document number authorizing
acquisition of the items shown in Section I. This normally will be a facility
contract number. Otherwise, it should be a purchase order or procurement
request number.
Block 12. Self-explanatory.
Block 13. Not applicable.
Block 14. Disregard the "Military" block. Show the NASA
contract number and program for which the item is to be used.
Block 15. Enter the specific function to be performed by the equipment.
When applicable, enter the tolerances, capacities, specifications, etc., that
the equipment must satisfy.
Block 16. Determine the date the item must be installed to meet
production requirements. From this date deduct the estimated number of days
required for installation. Enter the adjusted date in this block.
Block 17. Enter the date by which NASA must issue a Certificate of Nonavailability. Determine the date by subtracting the
acquisition lead time and 30 days administrative lead time from the date shown
in Block 16.
Block 18. Enter the Defense Priority and Allocations System (DPAS)
rating assigned to the contract or anticipated purchase order, if applicable.
Block 19. Place an "X" in the appropriate box. If for
replacement, identify the item being replaced and the reason for replacement.
Block 20. Place an "X" in the appropriate box. Show the
appropriation symbol if the answer is "yes."
Block 21. Not applicable.
Blocks 22 and 23. In addition to the official's
title and signature, type the signing official's name, office symbol or name,
and telephone number plus extension. The company representative who prepares
and submits the requirement to the cognizant NASA
certifying office should sign.
Block 24. Self-explanatory.
Block 25a. Not applicable.
Block 25b. Enter the name and address of the
installation certifying the requirement.
Block 25c. This block is for signature of the property administrator or
contracting officer at plant level.
Block 25d. Self-explanatory.
Block 25e. This block is for the signature of
NASA installation official certifying the requirement.
Block 25f. Self-explanatory.
Section III.
Blocks 26-29. Self-explanatory.
Section IV.
N/A.
Section V.
Complete this section if equipment is unavailable.
Section VI.
Blocks 44-47. The requesting official signing
Section II, Block 23, shall complete Section VI and shall list reasons for
non-acceptance in Section VIII, Remarks, or on a separate document attached to
the DD Form 1419.
Section VII.
Block 48. Enter the complete name, street address, city, state, and zip
code of the contractor or installation to which the item is to be shipped.
Indicate railhead and truck delivery points when other than the address named.
Blocks 49 and 50. Self-explanatory.
Blocks 51a. and b.
Ensure that NASA appropriation symbols are included with the work order number.
Block 51c. Enter the NASA appropriation symbol chargeable for any
special work ordered (e.g., rebuild, repair, or accessory replacement).
Block 51d. Enter the NASA installation and office symbol for the
organization that will make payment for transportation and packing, crating,
and handling.
Block 52. Self-explanatory.
Section VIII.
Block 53. This block can be used to expand or explain entries made in
Blocks 1 through 52. When requisitioning equipment from excess listings,
identify the issuing office, list number, date, control number, and item number
assigned to the equipment. When requesting equipment from DOD inventories,
refer to DOD instructions.
Subpart 1845.72--Contract Property Management
1845.7201
Definitions.
"Supporting responsibility," as used
in this subpart, relates to the assignment of a subcontract, or a portion of a
prime contract being performed at a secondary location of the prime contractor,
to a property administrator other than the individual assigned to the prime
location.
"Property control system," as used in
this subpart, identifies a contractor's internal management program encompassing
the protection of, preservation of, accounting for, and control of property
from its acquisition through disposition.
1845.7202
General.
This subpart describes major elements of the NASA
Contract Property Management Program. It provides guidance to NASA installation
personnel responsible for NASA contract property (NASA personal property in the
possession of contractors). It applies to all NASA installation personnel
charged with this responsibility, including industrial property officers and specialists,
property administrators, and plant clearance officers. It also provides
detailed procedures for property administration. The NASA Contract Property
Management Program includes the following three major elements:
(a) Performance of
property administration and plant clearance by DOD under delegations from NASA,
pursuant to 1842.101.
(b) Performance of property administration and
plant clearance by NASA under certain situations, pursuant to 1842.203.
(c) Maintenance of property administration and
plant clearance functional oversight, regardless of delegations.
1845.7203
Delegations of property administration and plant clearance.
When delegated to DOD, property administration and
plant clearance are performed in accordance with DOD's regulations and
procedures, as amended by the NASA Letter of Contract Administration
Delegation, Special Instructions on Property Administration and Plant
Clearance. These Special Instructions are developed by the Headquarters Office
of Management Systems and Facilities Logistics Management Office (Code JLG),
and are available from that office upon request. The contracting officer shall
issue the Special Instructions with delegations whenever Government property
will be involved. Additional or more tailored property instructions are not
proscribed but must be coordinated with Code JLG before issuance.
1845.7204
Retention of property administration and plant clearance.
NASA may occasionally retain the property
administration and plant clearance function, such as for contract work
performed at the installation awarding the contract and not subject to the
clause at 1852.245-71,
Installation-Accountable Government Property. In these cases, property
administration shall be performed in accordance with 1845.3
through 1845.6,
and plant clearance shall be performed in accordance with FAR
Subpart 45.6 and 1845.6.
Under the clause at 1852.245-71,
property administration and plant clearance are neither delegated nor retained;
they are simply not required because the property is treated as installation
rather than contract property.
1845.7205
Functional oversight of property administration and plant clearance.
NASA contracting officers retain functional management
responsibility for their contracts. Utilization of the contract administration
services of another Government agency in no way relieves NASA contracting
officers of their ultimate responsibility for the proper and effective
management of contracts. The functional management responsibility for contract
property is described in this section. Beyond individual contracting officers,
each NASA installation has designated an industrial property officer to manage
and coordinate property matters among the various contracting officers,
technical officials, contractor officials, and delegated property
administrators and plant clearance officers. Generally, that individual is
responsible for the entire contract property management function outlined
below; the installation is responsible for the entire function regardless of
how it is organized and distributed. The responsibilities are:
(a) Provide a focal
point for all management of contract property, including Government property
(Government-furnished and contractor-acquired) provided to universities as well
as to industry.
(b) Provide guidance to contracting and other
personnel on the NASA property provisions.
(c) To the extent feasible, review property
provisions of acquisition plans, solicitations, contracts, and modifications
for potential problems. Propose changes as necessary.
(d) To the extent feasible, participate in
pre-award surveys/post-award orientations when significant amounts of
Government property will be involved.
(e) Ensure that vesting-of-title determinations
are made and documented pursuant to FAR
35.014(b).
(f) Maintain effective communications with
delegated property administrators and plant clearance officers to keep fully
informed about contractor performance and progress on any property control problems.
(1) Obtain
and review property control system survey summaries for all contracts for which
property administration has been delegated. Advise Code JLG of any severe or
continuing problems.
(2) Provide
property administrators copies of all pertinent contract property
documentation.
(g) Review and analyze NASA Form 1018, NASA
Property in the Custody of Contractors.
(h) Negotiate, or ensure the negotiation of,
facilities contracts when required by FAR
45.302 and 1845.302.
Advise Code JLG annually of new and completed facilities contracts.
(i) Review property
administrators' approvals of relief of responsibility for lost, damaged, and
destroyed property and question any excessive or repetitive approvals.
(j) When appropriate, make recommendations to
source and performance evaluation boards regarding property management and
award fee criteria and evaluations regarding property management.
(k) Monitor plant clearance status to preclude
delays in contract closeout.
(l) Maintain contract property files for
all transactions and correspondence associated with each contract. Upon receipt
of Standard Form 1424, Inventory Disposal Report, and DD Form 1593, Contract
Administration Completion Record, or equivalents, merge
all property records for the contract and forward for inclusion with the
official completed file.
(m) Perform on-site property administration and
plant clearance when they are not delegated to DOD and the property is not
subject to the clause at 1852.245-71.
1845.7206 Responsibilities of property administrators and plant clearance officers.
1845.7206-1
Property administrators.
(a) When property administration is not
delegated to DOD, the property administrator shall evaluate the contractor's
management and control of Government property and ascertain whether the
contractor is effectively complying with the contract provisions. The property
administrator's responsibilities include --
(1)
Developing and applying a system survey program for each contractor under the
property administrator's cognizance;
(2)
Evaluating the contractor's property control system and approving or
recommending disapproval;
(3) Advising
the contracting officer of any (i) contractor
noncompliance with approved procedures and (ii) other significant problems the
property administrator cannot resolve, and recommending appropriate action,
which may include disapproval of the contractor's property control system;
(4)
Resolving property administration matters as necessary with the contractor's
management, personnel from Government procurement and logistics activities, and
representatives of the NASA Headquarters Office of the Inspector General, the
Defense Contract Audit Agency (DCAA), and other Government agencies; and
(5)
Recognizing the functions of other Government personnel having cognizance of
Government property and obtaining their assistance when required. (These
functions include, but are not limited to, contract audit, quality assurance,
engineering, pricing, and other technical areas. Assistance and advice on
matters involving analyses of the contractor's books and accounting records and
on any other audit matters deemed appropriate shall be obtained from the cognizant auditor.)
(b) The participation of property administrators
(or other Government industrial property personnel) in pre-award
surveys/post-award orientations is required whenever significant amounts of
Government property will be involved, in order to reveal and resolve property
management problems early in the acquisition cycle.
1845.7206-2
Plant clearance officers.
When plant clearance is not delegated to DOD, NASA
plant clearance officers shall be responsible for --
(a) Providing the contractor with instructions
and advice regarding the proper preparation of inventory schedules;
(b) Accepting or rejecting inventory schedules;
(c) Conducting or arranging for inventory
verification;
(d) Initiating prescribed screening and
effecting resulting actions;
(e) Final plant clearance of contractor
inventory;
(f) Pre-inventory scrap determinations, as
appropriate;
(g) Evaluating the adequacy of the contractor's
procedures for property disposal;
(h) Determining the method of disposal;
(i) Surveillance
of any contractor-conducted sales;
(j) Accounting for all contractor
inventory reported by the contractor;
(k) Advising and assisting, as appropriate, the
contractor, the Supply and Equipment Management Officer (SEMO) and other
Federal agencies in all actions relating to the proper and timely disposal of
contractor inventory;
(l) Approving the method of sale, evaluating
bids, and approving sale prices for any contractor-conducted sales;
(m) Recommending the reasonableness of selling
expenses related to any contractor-conducted sales;
(n) Securing antitrust clearance, as required;
and
(o) Advising the contracting officer on all
property disposal matters.
1845.7207
Declaration of excess property.
A problem often disclosed by system analysis is the
failure of a contractor to report Government property not needed in performance
of the contract (excess). The property administrator shall fully document and
report any such finding to the administrative contracting officer. After
a report of excess received from a contractor has been referred to the plant
clearance officer for screening and ultimate disposition, the property
administrator shall ensure prompt disposition. For centrally reportable
plant equipment, the property administrator shall --
(a) Assure the
preparation and submission of individual reports required of the contractor;
(b) Verify the permit certifications required by
the forms; and
(c) Transmit the report to the NASA Industrial
Property Officer.
1845.7208 Closure of contracts.
1845.7208-1
Completion or termination.
Upon completion or termination of a contract, the
property administrator shall --
(a) Monitor the actions
of the contractor in returning excess Government property not referred to the
plant clearance officer; and
(b) Advise the cognizant plant clearance officer
as to the existence at a contractor's plant of residual property requiring
disposal.
1845.7208-2
Final review and closing of contracts.
(a) When informed that disposition of Government
property under a contract has been completed, the property administrator shall perform
a final review and sign a determination that --
(1)
Disposition of Government property has been properly accomplished and
documented;
(2)
Adjustment documents, including any request of the contractor for relief from
responsibility, have been processed to completion;
(3) Proceeds
from disposals or other property transactions, including adjustments, have been
properly credited to the contract or paid to the Government as directed by the
contracting officer;
(4) All
questions regarding title to property fabricated or acquired under the contract
have been resolved and appropriately documented; and
(5) The
contract property control record file is complete and ready for retirement.
(b) When final review pursuant to paragraph (a)
of this section reveals that such action is proper, the property administrator
shall accomplish and sign a DD Form 1593, Contract Administration Completion
Record, or equivalent.
(c) The executed DD Form 1593 shall be forwarded
to the contracting officer, the Property Summary Data Record shall be so
annotated, and the contracting officer shall include it in the contract file.
1845.7209-1
Government property at alternate locations of the prime contractor and
subcontractor plants.
(a) Government property provided to a prime
contractor may be located at other plants of the prime contractor or at
subcontractor locations. The prime contractor is accountable and responsible to
the Government for this property.
(b) A Government property administrator
cognizant of the location of the property shall normally be designated to (1)
perform required surveys of the property control system and
(2) exercise surveillance over the property as a supporting
responsibility.
(c) If the property administrator determines
that supporting property administration is required, he or she shall write the cognizant contract administration office asking that a
property administrator be assigned. The request for supporting property
administration shall include --
(1) The name
and address of the prime contractor;
(2) The
prime contract number;
(3) The name
and address of the alternate location of the prime contractor, or of the
subcontractor where the property will be located;
(4) A
listing of the property being furnished, or, if property is being acquired
locally, a statement to this effect; and
(5) A copy
of the subcontract or other document under which the property will be furnished
or acquired.
(d) Concurrent with the action cited in
paragraph (c) of this section, the property administrator shall ascertain
whether the prime contractor will perform the necessary reviews and
surveillance with the contractor's own personnel, or elect to rely upon the
system approval and continuing surveillance by a supporting property
administrator of the property control system at the alternate location or
subcontractor plant. If the prime contractor advises that it will accept the
findings of a supporting property administrator, a statement in writing to that
effect shall be obtained. If the prime contractor does not so elect, it shall
be required to perform the requisite reviews and surveillance and document its
actions and findings.
(e) If a single item or limited quantities of
property will be located at an alternate location or subcontractor plant, the
property administrator may determine that supporting property administration is
unnecessary, provided --
(1) The
prime contractor's records adequately reflect the location and use of the
property;
(2) The
nature of the property is such that the possibility of its use for unauthorized
purposes is unlikely; and
(3) The
nature of the property is such that a program of preventive maintenance is not
required.
(f) When supporting property administration will
not be requested, the services of a property administrator in the contract
administration office cognizant of the site where the property is located may
be requested on an occasional basis for special reviews or such other support
as may be necessary. Repeated requests for assistance indicate a requirement
for requesting supporting property administration.
1845.7209-2 Loss, damage, or destruction of
Government property.
(a) Normally, contract provisions provide for
assumption of risk of loss, damage, or destruction of Government property as
described by the following:
(1)
Sealed-bid and certain negotiated fixed-price contracts provide that the
contractor assumes the risk for all Government property provided under the
contract (see the clause at FAR 52.245-2,
Government Property (Fixed-Price Contracts)).
(2) Other
negotiated fixed-price contracts provide that the contractor assumes the risk
for all Government property provided under the contract, with the exceptions
set forth in the clause at FAR 52.245-2,
Alternate I and Alternate II.
(3)
Cost-reimbursement contracts (see the clause at FAR 52.245-5,
Government Property (Cost-Reimbursement, Time-and-Material, or Labor-Hour
Contracts)) provide that the Government assumes the risk for all Government
property provided under the contract when there is no willful misconduct or
lack of good faith of any of the contractor's managerial personnel as defined
in the contract.
(4) There
are certain events for which the Government does not assume the risk of loss,
damage, or destruction of Government property, such as risks the contract
expressly requires the contractor to insure against. Therefore, before reaching
a conclusion or making a determination, the contracting officer shall obtain
property administrator review of the contract clause and shall obtain advice
from appropriate legal counsel on questions of legal meaning or intent.
(5)
"Willful misconduct" may involve any intentional or deliberate act or
failure to act causing, or resulting in, loss, damage, or destruction of
Government property.
(6)
"Lack of good faith" may involve gross neglect or disregard of the
terms of the contract or of appropriate directions of the contracting officer
or the contracting officer's authorized representatives. Examples of lack of
good faith may be demonstrated by the failure of the contractor's managerial
personnel to establish and maintain proper training and supervision of
employees and proper application of controls in compliance with instructions
issued by authorized Government personnel.
(b) If part of the contractor's system is found
to be unsatisfactory, the property administrator shall increase surveillance of
that part to prevent, to the extent possible, any loss, damage, or destruction
of Government property. The property administrator shall give special attention
to reasonably ensuring that any loss, damage, or destruction occurring during a
period when a contractor's system is not approved is identified before approval
or reinstatement of approval.
1845.7209-3
Loss, damage, or destruction of Government property while in contractor's
possession or control.
(a) The property administrator shall require the
contractor to report any loss, damage, or destruction of Government property in
its possession or control (including property in the possession or control of
subcontractors) as soon as it becomes known.
(b) When physical inventories, consumption
analyses, or other actions disclose consumption of Government property
considered unreasonable by the property administrator or loss, damage, or
destruction of Government property not reported by the contractor, the property
administrator shall prepare a statement of the items and amount involved. This
statement shall be furnished to the contractor for investigation and submission
of a written report to the property administrator relative to the incidents
reported.
(c) The contractor's reports referenced in
paragraphs (a) and (b) of this section shall contain factual data as to the
circumstances surrounding the loss, damage, destruction, or excessive
consumption, including --
(1) The
contractor's name and the contract number;
(2) A
description of items lost, damaged, destroyed, or unreasonably consumed;
(3) The cost
of property lost, damaged, destroyed, or unreasonably consumed and cost of
repairs in instances of damage (in event actual cost is not known, use a
reasonable estimate);
(4) The
date, time (if pertinent), and cause or origin of the loss, damage,
destruction, or consumption;
(5) Known
interests in any commingled property of which the Government property lost,
damaged, destroyed, or unreasonably consumed is (or was) a part;
(6)
Insurance, if any, covering the Government property or any part or interest in
any commingled property;
(7) Actions
taken by the contractor to prevent further loss, damage, destruction, or
unreasonable consumption and to prevent repetition of similar incidents; and
(8) Other
facts or circumstances relevant to determining liability and responsibility for
repair or replacement.
(d) The property administrator shall investigate
the incident to the degree required to reach a valid and supportable conclusion
as to the contractor's liability for the loss, damage, destruction, or
unreasonable consumption under the terms of the contract, and the course of
action required to conclude the adjustment action. When required, the
assistance of the quality assurance representative, industrial specialist,
insurance officer, legal counsel, or other technician will be secured. When the
contractor acknowledges liability, the property administrator shall forward a
copy of the credit memorandum or other adjusting document to the administrative
contracting officer and auditor, if appropriate, to assure proper credit. If
analysis of contract provisions and circumstances establishes that the loss,
damage, destruction, or consumption constitutes a risk assumed by the
Government, the property administrator shall so advise the contractor in
writing, thereby relieving the contractor of responsibility for the property. A
copy of the documentation and notification to the contractor shall be retained
in the Contract Property Control Data File for the contract.
(e) (1) If the property
administrator concludes that the contractor is liable for the loss, damage,
destruction, or unreasonable consumption of Government property, he or she
shall forward the complete file with conclusions and recommendations to the
contracting officer for review and determination. The file shall contain --
(i) A statement of facts as supported by
investigation;
(ii) Recommendations as to the contractor's
liability and its amount;
(iii) Recommendations as to action to be taken with regard to third party
liability, if appropriate;
(iv) Requirements for disposition, repair, or replacement of damaged property;
and
(v) Other pertinent comments.
(2) A copy
of the contracting officer's determination shall be furnished to the contractor
and the property administrator, and a copy shall be retained in the contracting
officer's files. The property administrator's copy shall be filed in the
Contract Property Control Data File for the contract when all pertinent
actions, such as compensation to the Government or repair or replacement of the
property, have been completed.
1845.7209-4
Financial reports.
The property administrator is responsible for
obtaining financial reports as prescribed in 1845.505-14
for all assigned contracts. Reports shall be accumulated, reviewed and
distributed as required. Contractors are required to submit separate reports on
each contract that contains the property reporting clause (see 1852.245-73)
except as noted in 1845.7101-4(c).
1845.7210 Contractor utilization of Government property.
1845.7210-1
Utilization surveys.
(a) The property administrator is responsible
for ensuring that the contractor has effective procedures for evaluating
Government property utilization. However, when necessary, the contract
administration office shall provide specialists qualified to perform the
technical portion of utilization surveys to assist the property administrator
in determining the adequacy of these procedures.
(b) Upon assignment of an initial contract under
which Government-owned plant equipment in particular will be provided to a
contractor, the property administrator shall ensure that the contractor has
established effective procedures and techniques for controlling its
utilization. The property administrator, with the assistance of technical
specialists, if necessary, shall evaluate these procedures. A record of the
evaluation shall be prepared and become a part of the property administration
file. If the procedures are determined inadequate, the record shall identify
the deficiencies and the corrective actions necessary. If the deficiencies are
not corrected by the contractor, the property administrator shall promptly
refer the matter to the contracting officer.
(c) The property administrator shall perform
annual surveys of the contractor's procedures related to utilization of
Government-owned plant equipment. At contractor facilities having a substantial
quantity of plant equipment, the surveys should normally be
conducted on a continual basis, reviewing equipment utilization records and
physically observing a group of preselected items
during each portion of the survey. Surveys shall be conducted to the degree
determined necessary, considering the findings of prior surveys and the
contractor's performance history in identifying and declaring equipment excess
to authorized requirements. The contractor shall be required to justify, by
specific Government programs, the retention of all Government-owned plant
equipment. The property administrator shall make maximum use of contractor's
machine loading data, order boards, production planning records, machine time
records, and other production control methods.
(d) The property administrator shall conduct a
special survey when a significant change occurs in the contractor's production
schedules, such as a termination, completion of a contract, or a major
adjustment in a program. Special surveys may be limited to a given department,
activity, or division of a contractor's operation.
(e) In the absence of adequate justification for
retention, the contractor shall identify and report Government-owned plant
equipment in accordance with FAR
45.502(g) and 45.509-2(b)(4).
Items that are part of approved inactive package plants or standby lines are
exempted from utilization surveys. The contracting officer shall ascertain
periodically whether existing authorizations for standby or lay-away
requirements are current.
1845.7210-2
Records of surveys.
The property administrator shall prepare a record incorporating
written findings, conclusions, and recommendations at the conclusion of each
survey. If appropriate, the property administrator's record may be limited to a
statement expressing concurrence with the reports of other specialists. The
property administrator shall retain one copy of each record in the property
administration file.