The PDF version pdf file

Display Related Directives to this directive.
Display Reference Documents to this directive.

U.S. Department of Energy ORDER
Washington, D.C. DOE O 580.1

Approved: 12-7-05

SUBJECT : DEPARTMENT OF ENERGY PERSONAL PROPERTY MANAGEMENT
PROGRAM

1. OBJECTIVES. To set forth the following:

a. Standards, practices, and performance expectations for the management of
personal property owned by the Department of Energy (DOE). (Terms and
definitions used in this Order can be referenced in the Guide, DOE G 580.1-1,
Department of Energy Personal Property Management Guide, dated 12-7-05.)
b. Responsibilities for development, administration, application, and oversight of the
DOE personal property management program.

2. CANCELLATIONS. None.

3. APPLICABILITY.

a. DOE Elements. This Order applies to all DOE elements with personal property
management responsibilities (see Attachment 1 for a complete list of DOE
elements) including the National Nuclear Security Administration (NNSA). This
Order automatically applies to DOE elements created after it is issued.
The NNSA Administrator will ensure that NNSA employees and contractors
comply with their respective responsibilities under this Order.

b. DOE Contractors.

(1) The Contractor Requirements Document (CRD), Attachment 2, sets forth
requirements of this Order that will apply to DOE contractors whose
contracts include this CRD.
(2) This CRD must be included in those management and operating contracts
that contain the property clause of Title 48 Code of Federal Regulations
(CFR) 970.5245-1.

c. Exclusions.

(1) The equipment capitalization criteria listed in the DOE Accounting
Handbook has no bearing on the application of the requirements of this
Order.
(2) High Risk Property, Motor Vehicle Management and Energy Related
Laboratory Equipment (ERLE) guidance is excluded from this Order and
remain in Title 41 CFR 109, the DOE Property Management Regulations.

4. REQUIREMENTS.

a. Acquisition. Excess Government personal property must be used to the maximum
extent possible to reduce operational costs.

b. Borrowing Personal Property. Government personal property may be borrowed
from within DOE or other Federal agencies when the following conditions apply.

(1) It is practical and economical.
(2) The property is required for short periods of time (typically 1 year or less;
longer period when justified by program officials).
(3) The terms of the borrowing arrangement are included in a written
agreement and controls are established to ensure the prompt return of the
property to the lender.

c. Loaning Personal Property.

(1) Government Personal Property may be loaned provided the loan is—
(a) For use in performing research, studies, and other efforts that result
in benefits to both the U.S. Government and the borrower and
provided that the DOE mission is not affected.
(b) To another DOE organization, contractor, Government agency, or
organization that has a valid Federal contract, grant, treaty,
international or collateral agreement, or other documentation
substantiating that the loaned property will be used only for official
purposes.
(c) To local agencies in support of military operations or health,
safety, or security requirements upon appropriate Departmental
notification of emergency conditions.
(d) Documented and approved using DOE Form 4420.2, U.S.
Department of Energy Personal Property Loan Agreement.

(2) Domestic Loans may be approved for one loan period of up to 3 years
with annual assessments of verifiable need.

(3) Foreign Loans.
(a) May be approved by the appropriate local DOE official for 1 year
with provisions for 1 year extensions (loan period not to exceed
5 years).
(b) Requires DOE site review and concurrence and approval by the
DOE property executive.

d. Identification and Marking.

(1) Equipment, sensitive and administratively controlled property must be
identified and marked as U.S. Government property (or U.S. DOE if space
is limited) except for items, such as stores inventories, that by their nature
cannot be marked.
(2) Metals and metal products must be identified and marked in accordance
with applicable Federal standards. Additional markings not covered by
Federal standards should be used to show special properties, corrosion
data, or test data as required. While it is preferred that the marking be
done during the manufacturing process, it may be applied by suppliers,
when circumstances warrant, or waived when—
(a) it is necessary to procure small quantities from suppliers not
equipped to do the marking,
(b) marking would delay the delivery of emergency orders, or
(c) procurement is from DOE or other Federal agency excess.
(3) Equipment and sensitive items must be numbered for control purposes and
must be marked legibly, conspicuously, and securely using media such as
bar code labels, decals, and stamping. Administratively controlled
property may be marked and recorded as determined by the organizational
property management officer (OPMO).
(4) Identification markings must be removed to the extent practical before
disposal of property outside of DOE. If removal of the markings is
impractical, additional permanent markings must be added to the property
to indicate its disposal.

e. Records.

(1) The following types of personal property control records must be
established for DOE-owned personal property.
(a) Individual property control records must be established and
maintained for—
1 equipment and
2 sensitive property.
(b) Perpetual inventory records must be established and maintained for
the following.
1 Precious metals (to the nearest gram). However, records
for custodian holdings, by type, each having a value of
$250 or less may be waived by the OPMO.
2 Stores inventories. Sub-stores inventory records must be
integrated with central stock records so that the total
amount of any item at all locations is known.
3 Stock records.
a Stock record accounts must be maintained for
personal property items under stock control for
more than 90 days.
b Stock records must be maintained when shop,
bench, cupboard, or site stock items are not
consumed or do not turn over in a reasonable period
of time (i.e., 90 days).
4 Potable alcohol. Records of potable alcohol must be
maintained on total quantities of 1 quart and above.
(c) Formal property control records are not required for
administratively controlled items and for information technology
that is past its defined service life (as provided in the DOE
Accounting Handbook) and not subject to High Risk or sensitive
item controls. However, the following types of records, where
applicable, are useful in managing these types of property.
1 Calibration records.
2 Maintenance records.
3 Tool crib records.
4 Equipment pool records.
5 Property passes.
(2) Property control and/or financial accounting records must include the
following basic information.
(a) Contract number or equivalent code designation.
(b) Acquisition document number and date.
(c) Asset type.
(d) Property control number.
(e) Description of item [nomenclature, serial number, Federal stock
group or national stock number (if available)].
(f) Manufacturer.
(g) Model number.
(h) Unit acquisition cost (including delivery and installation cost,
when appropriate).
(i) Depreciated value.
(j) Unit of measure.
(k) Quantity received, fabricated, issued, or on hand.
(l) Individual and organization accountable for the property.
(m) Location of property.
(n) Use status (active, storage, excess, etc.).
(o) High Risk designation.
(p) Any other data required by contract.
(q) Disposition document reference and date.
(r) Condition code.

f. Physical Inventories.

(1) DOE organizations may use the ASTM International voluntary consensus
standard for physical inventories, E 2132-01, Standard Practice for
Physical Inventory of Durable, Moveable Property.
(2) Physical inventories of personal property must be performed at the
following frequencies (or more frequently when determined necessary for
specific items or for effective accounting, utilization, or control at a given
location).
(a) Equipment—biennially.
(b) Sensitive items—annually.
(c) Stores inventories—annually.
(d) Precious metals—annually, with the following authorized
exceptions.
1 Precious metals, by type, each valued between $250 and
$500 with no consumption may be certified in writing by
the custodian.
2 Precious metals, by type, each valued at $250 or less may
be treated as consumed or expended.
(e) Administratively controlled items and information technology that
is past its defined service life (as provided in the DOE Accounting
Handbook) and not subject to High Risk or sensitive item controls
are inventoried as determined by the OPMO based on local
management needs or as part of a wall-to-wall inventory.
(3) The following methods will be used.
(a) The wall-to-wall inventory method is required for weapons,
ammunition, military property, and at contract completion or
within a 5-year cycle, whichever comes first. A wall-to-wall
inventory may be performed for all other types of personal
property when determined necessary by the OPMO.
(b) The following alternative methods may be used for the types of
personal property indicated when they are fully documented and
approved by the OPMO.
1 Inventory by exception method—equipment and sensitive
items.
2 Statistical sampling method—stores inventories,
equipment, and sensitive items.
3 Electronic inventory method—information technology that
is connected to a network that permits use of this method.
(c) The statistical sampling method is only acceptable if it is
statistically valid and it produces acceptable results. If it does not
produce acceptable results, the wall-to-wall method will be used to
complete the physical inventory.
(d) Personnel other than the property custodians must perform the
physical inventories. Excluding weapons, ammunition, and
military property, inventories of property by the custodians, with
follow-on sample verification by property management
organizations, may be authorized where—
1 approved by the OPMO and
2 strict individual custodial accountability is enforced.
(e) Precious metal quantities must be reconciled to the nearest gram.
(f) High Risk personal property must be managed in accordance with
the Department of Energy Property Management Regulation
(41 CFR 109).

g. Sensitive Items.

(1) As determined by the OPMO and/or the contracting officer, a list of those
items of personal property that are considered sensitive must be developed
and maintained by each DOE element.
(2) The list must consist of—
(a) items, regardless of value, that require special control and
accountability because of susceptibility to unusual rates of loss,
theft, or misuse or due to national security and export control
considerations. Items include, but are not limited to, weapons,
ammunition, explosives, classified property, laptops, computers,
personal digital assistants, other information technology equipment
and removable components with memory capability, unless the
OPMO and/or contracting officer determines, with concurrence of
the property executive or designee, that a specific item should not
be included, and
(b) other items that the OPMO and/or contracting officer determines to
need special control and accountability.
(3) Items of equipment that are designated as sensitive items must be
controlled both as sensitive items and as equipment.
(4) Written procedures must address the following.
(a) Establishment of the appropriate supervisory levels for approval of
purchase requisitions or issue documents.
(b) Establishment of controls in the central receiving and warehousing
department, such as extraordinary handling and physical
protection, and the maintenance of a current listing of sensitive
items.
(c) Use of memorandum receipts or custody documents at the time of
assignment or change in custody.
(d) Establishment of custodial responsibilities describing the
requirement for—
1 appropriate physical and administrative controls, especially
for items assigned for general use within an organizational
unit, and
2 reporting changes in custody.

h. Controlled Substances, Hypodermic Needles, Syringes and Potable Alcohol.
These types of items must be managed and physically controlled, from receipt to
the point of use, to prevent improper or illegal use. Controls must include
supervisory approval for issue, storage in locked repositories, and rendering items
useless before disposal. Controls of potable alcohol must be maintained on total
quantities of 1 quart and above.

i. Returnable Containers. Containers furnished by vendors must be controlled
administratively and physically to ensure their prompt return to the vendors for
credit after they have served intended use.

j. Administratively Controlled Items.

(1) Appropriate control techniques must be used to minimize waste and to
prevent loss, theft, unauthorized removal, and abuse of administratively
controlled items.
(2) Techniques must include use and review of—
* calibration and maintenance schedules,
* tool crib check controls,
* loss and theft reports,
* property pass systems,
* memoranda records,
* check-out procedures for transferring or terminating employees,
* perimeter fencing, and
* gate checks.

k. Stores Inventory Turnover Ratio. Investment in stores inventories will be
compared to annual stores to ensure minimum inventory levels are maintained.

(1) Comparisons may be expressed either as turnover ratios (the dollar value
of issues divided by the dollar value of inventory) or as average number of
months supply on hand.
(2) Turnover ratios or number of months supply will be calculated only on
current-use inventory.
(3) Performance goals, (e.g., a 6-month investment or a turnover ratio of 2.0)
will be established for each stores inventory user activity.

l. Official Use of DOE-Owned Personal Property.

(1) General.
(a) Personal property will be used in the performance of official work
of the U.S. Government, except—
1 in emergencies threatening loss of life or property, as
authorized by law, or
2 as otherwise authorized by law and approved by the
Director, Office of Administration, Headquarters; heads of
field organizations; or the contracting officer for
contractor-held property.
(b) Written procedures will document the prohibition against use, for
other than official purposes, and the penalties for misuse of
personal property.
(2) Motor vehicles. Vehicles must be managed in accordance with the
Department of Energy Property Management Regulation (41 CFR 109).

m. Loss, Damage, Destruction, or Unauthorized Use of Personal Property.

(1) DOE organizations may use the ASTM International voluntary consensus
standard, E 2131-01, Standard Practice for Assessing Loss, Damage, or
Destruction of Property. If the ASTM standard is used, the acceptable
loss, damage and destruction ratios listed in the standard apply unless
Departmental performance expectations require the use of different ratios.
This ASTM International standard does not apply to DOE High Risk or
sensitive property, which requires 100% accountability.
(2) DOE Federal employees will be responsible and may be financially liable
for loss, damage, destruction, and unauthorized use of personal property in
their possession and control. Liability of DOE Federal employees will be
governed by Title 18 United States Code Section 641 and Title 5
CFR Section 2635.704.
(3) All instances of loss, damage, destruction, or unauthorized use of personal
property must be reported, documented, and investigated. As a minimum,
this will include the following.
(a) Notifying appropriate DOE offices and, when necessary, law
enforcement organizations as soon as possible but no later than
24 hours after the property loss becomes known.
(b) Determining the circumstance or cause.
(c) Determining responsibility and financial liability for repair,
replacement, or unauthorized use.
(d) Identifying actions taken to prevent—
1 further loss, damage, destruction, or unauthorized use of
property and/or
2 recurrence of the same or similar incidents.

n. Retirement of Property.

(1) A retirement work order must be used to list Government property that is
worn out, lost, stolen, destroyed, abandoned, or damaged beyond
economical repair. When property is lost, stolen, damaged, or destroyed, a
full explanation of the circumstances and investigation results, when
applicable, will be provided to the appropriate DOE officials.
(2) The initiating official must sign the retirement work order and an official at
least one supervisory level above the initiating official must review and
approve it.

o. Disposal of Property.

(1) DOE excess personal property must be screened for Departmental
reutilization using the Energy Asset Disposal System (EADS). Property
not selected for DOE use that is eligible for further screening is
automatically screened Government-wide in GSAXcess.
(2) Nuclear-related property must be screened within DOE, however, not
reported to General Services Administration (GSA). Proliferation
sensitive property, identified as High Risk, must be screened within DOE
but not reported to GSA.
(3) Hazardous or suspected hazardous personal property must be checked for
contamination by environmental, safety, and health officials.
Contamination-free personal property will be tagged with a certification
tag authorizing release of the property. Contaminated personal property
will be retained by the program office for appropriate disposal action.
(4) DOE organizations must establish surplus personal property sales
operations when heads of field organizations determine sales operations
are in the best interest of the Government. OPMOs and appropriate
program officials must oversee these surplus sales to ensure personal
property requiring special handling and/or certification is processed and
sold in accordance with applicable regulations.
(5) DOE Federal employees may acquire surplus Government personal
property provided they certify in writing before the sale award that they
have not, directly or indirectly—
(a) obtained information about the property not available to the
general public or
(b) participated in—
1 the decision to dispose of the personal property,
2 the preparation of the personal property for sale, and
3 the determination of the method of sale.
(6) Specially fitted clothing and other articles of personal property, acquired
for the exclusive, personal use of an individual Federal employee that
cannot be used by anyone else without substantial modification, may be
sold to the employee when the property is no longer required or the
employee is terminated.

5. RESPONSIBILITIES.

a. Secretary of Energy is responsible for acquisition, management, and disposition
of personal property held by the Department for official use by its employees and
contractors. The Secretary has delegated this responsibility for DOE activities
through the Director, Office of Management, Budget and Evaluation, to the
Director, DOE Office of Procurement and Assistance Management, and for
NNSA activities, through the Under Secretary for Nuclear Security to the
Director, NNSA Office of Acquisition and Supply Management.

b. The Director, DOE Office of Procurement and Assistance Management and the
Director, NNSA Office of Acquisition and Supply Management are the senior
procurement executives (SPEs) for their respective organizations, and are
responsible for the development and administration of an effective and efficient
personal property management program for the acquisition, management, and
disposition of personal property held by the DOE/NNSA for official use by
employees and contractors. The SPEs are responsible for notifying contracting
officers regarding which contracts are affected by this Order.

c. Property Executive. The Director, Office of Resource Management for DOE, and
the Director, Office of Procurement and Assistance Management for NNSA, are
designated property executives.

(1) Develop, administer, and oversee the Department-wide personal property
management program.
(2) Establish policies, standards, and guidance in accordance with applicable
laws, regulations and sound personal property management practices and
standards.
(3) Advise and provide staff assistance to Headquarters and field organizations
that perform personal property management functions.
(4) Establish performance-based personal property management objectives,
measures, and expectations.
(5) Evaluate Federal and contractor personal property management systems,
functions, operations, procedures, and self-assessment programs.

(6) Serve as—
(a) career manager for establishing and administering the personal
property management career development program,
(b) Departmental motor equipment fleet manager responsible for
developing and implementing DOE motor equipment policy and
for conducting oversight of the DOE motor equipment program,
(c) DOE National Utilization Officer responsible for promoting
acquisition and utilization of excess personal property, and
(d) DOE precious metals recovery program monitor.

d. Director, Office of Administration.

(1) Establishes a personal property management program for all DOE direct
operations located in the Washington, D.C. metropolitan area, except for
the Federal Energy Regulatory Commission (FERC).
(2) Appoints an OPMO who is responsible for the organization's personal
property management program.
(3) Approves, conditionally approves, or disapproves contracted property
management systems for all DOE direct operations located in the
Washington, D.C., metropolitan area except for FERC.

e. Director, Office of Headquarters Procurement and Assistance Management and
the Heads of Field Organizations.

(1) Establish a personal property management program for their respective
organizations.
(2) Appoint OMPOs responsible for personal property management program
in their respective organizations.
(3) Approve, conditionally approve, or disapprove contractor personal
property management systems. The approval authority may be redelegated
to the contracting officer or the contracting officer’s designee.
(4) Conditional approval and disapproval authority cannot be redelegated.

f. Organizational Property Management Officers establish and administer personal
property management programs within their organizations consistent with
applicable laws, regulations, practices, and standards and provide for the
following.

(1) Planning, acquisition, control, management, and disposal of personal
property in the custody of DOE offices.
(2) Making DOE employees aware of their responsibilities for the protection
of Government property in their possession and their potential liability for
its loss, damage, destruction, or unauthorized use.
(3) Conducting continuous oversight and periodic management reviews of
DOE personal property management activities to ensure—
(a) personal property management program expectations are met and
(b) applicable policies, procedures, practices, and standards are
followed.

g. Contracting Officers appoint a property administrator for each contract and ensure
the following.

(1) Contracts that involve personal property contain the applicable property
contract clause.
(2) Contractor personal property management systems are reviewed,
appraised, and approved.
(3) Contractors implement the applicable provisions of the Federal
Management Regulation, Federal Property Management Regulations, DOE
Property Management Regulations, and this Order.

h. Property Administrators , as authorized representatives of the contracting officer,
are responsible for the following.

(1) Performing delegated contract administration functions for contract
requirements relating to Government personal property.
(2) Developing and applying an oversight program, resolving property
administration issues, and making recommendations concerning the
acceptability of contractor personal property management systems.
(3) Advising contracting officers and OPMO of any contractor noncompliance
with approved procedures, or other significant problems that cannot be
resolved, and recommending appropriate action.

6. REFERENCES.

a. Title 40 United States Code (U.S.C.) 471 et seq., Federal Property and
Administrative Services Act of 1949, as amended.
b. Executive Order 13148, Greening the Government through Leadership in
Environmental Management.
c. 41 CFR 101, Federal Property Management Regulations.
d. 41 CFR 102, Federal Management Regulation.
e. 41 CFR 109, Department of Energy Property Management Regulation.
f. 48 CFR 970.5245-1, Property.
g. P.L. 106-65, Title XXXII, National Nuclear Security Administration Act.
h. DOE O 361.1A, Acquisition Career Development Program, dated 4-19-04.
i. DOE G 580.1-1, Department of Energy Personal Property Management Guide,
dated 12-7-05.
j. DOE Accounting Handbook.
k. DoD 4160.21-M-1, Defense Demilitarization Manual.
l. ASTM International Standard E 2132-01, Standard Practice for Physical
Inventory of Durable, Moveable Property.
m. ASTM International Standard E 2131-01, Standard Practice for Assessing Loss,
Damage, or Destruction of Property.
n. ASTM International Standard E 2135-02, Standard Terminology for Property and
Asset Management.
o. ASTM International Standard E 2221-02, Standard Practice for Administrative
Control Property.
p. ASTM International Standard E 2279-03, Standard Practice for Establishing the
Guiding Principles of Property Management.
q. ASTM International Standard E 2306-03, Standard Practice for Utilization and
Disposal of Personal Property.

7. CONTACT. Questions regarding this Order should be addressed to the Office of
Resource Management at 202-287-1563.

BY ORDER OF THE SECRETARY OF ENERGY:

CLAY SELL
Deputy Secretary

ATTACHMENT 1. DOE ELEMENTS TO WHICH DOE O 580.1 IS APPLICABLE

Office of the Secretary
Departmental Representative to the Defense Nuclear Facilities Safety Board
Energy Information Administration
National Nuclear Security Administration
Office of the Chief Financial Officer
Office of the Chief Information Officer
Office of Civilian Radioactive Waste Management
Office of Congressional and Intergovernmental Affairs
Office of Counterintelligence
Office of Economic Impact and Diversity
Office of Electricity Delivery and Energy Reliability
Office of Energy Efficiency and Renewable Energy
Office of Environment, Safety and Health
Office of Environmental Management
Office of Fossil Energy
Office of General Counsel
Office of Hearings and Appeals
Office of Human Capital Management
Office of Inspector General
Office of Intelligence
Office of Legacy Management
Office of Management
Office of Nuclear Energy, Science and Technology
Office of Policy and International Affairs
Office of Public Affairs
Office of Science
Office of Security and Safety Performance Assurance
Secretary of Energy Advisory Board
Southeastern Power Administration
Southwestern Power Administration
Western Area Power Administration

ATTACHMENT 2. CONTRACTOR REQUIREMENTS DOCUMENT DOE O 580.1, DEPARTMENT OF ENERGY PERSONAL PROPERTY
MANAGEMENT PROGRAM

Regardless of the performer of the work, the contractor is responsible for compliance with the
requirements of this Contractor Requirements Document (CRD) and flowing down CRD
requirements to subcontractors at any tier to the extent necessary to ensure contractor
compliance.

1. The contractor must do the following.

a. Establish, implement, and maintain a written personal property management
system that—
(1) provides for the efficient, life-cycle management (from acquisition to
disposition) of DOE-owned personal property accountable to its contract;
(2) incorporates the uniform principles, policies, standards, guidance, and
performance expectations of the DOE personal property management
program; and
(3) is consistent with the terms and conditions of the contract and prescribed
Federal statutes and regulations.

b. Present its written personal property management system, and any proposed
significant revisions to an already approved system, for review and written
approval by the cognizant DOE contracting officer.

c. Establish a personal property holdings baseline, either by conducting a complete
physical inventory or by accepting the previous contractor’s records (new
contractors only).

d. Perform assessments of its personal property management systems, in accordance
with directions provided by DOE, to determine whether the systems meet DOE
personal property management program expectations, reporting assessment results
to the cognizant DOE property management function and taking corrective action
when weaknesses are identified.

e. Ensure that its subcontractors efficiently manage the DOE-owned personal
property that is furnished to them.

2. The contractor personal property management system must address the following.

a. Acquisition. Excess Government personal property must be used to the maximum
extent possible to reduce operational costs.

b. Borrowing Personal Property. Government personal property may be borrowed
from DOE or other Federal agencies when the following conditions apply.

(1) It is practical and economical.
(2) The property is required for short periods of time (typically 1 year or less;
longer period when justified by DOE program officials).
(3) The terms of the borrowing arrangement are included in a written
agreement and controls are established to ensure the prompt return of the
property to the lender.

c. Loaning Personal Property.

(1) Domestic loans may be approved by the appropriate DOE official for one
loan period up to 3 years with annual assessments of verifiable need.
(2) Foreign Loans.
(a) May be approved by the appropriate local DOE official for 1 year
with provisions for one year extensions (loan period not to exceed
5 years.
(b) Requires DOE site review and concurrence and approval by the
DOE property executive.

d. Identification and Marking.

(1) All personal property must be identified and marked as U.S. Government
property (or U.S. DOE if space is limited) except for items, such as stores
inventories, that by their nature cannot be marked.
(2) Metals and metal products must be identified and marked in accordance
with applicable Federal standards. Additional markings not covered by
Federal standards should be used to show special properties, corrosion
data, or test data as required. While it is preferred that the marking be
done during the manufacturing process, it may be applied by suppliers,
when circumstances warrant, or waived when—
(a) it is necessary to procure small quantities from suppliers not
equipped to do the marking,
(b) marking would delay the delivery of emergency orders, or
(c) procurement is from DOE or other Federal agency excess.
(3) Equipment and sensitive items must be numbered for control purposes and
must be marked legibly, conspicuously, and securely, using media such as
bar code labels, decals, and stamping. Administratively controlled
property may be marked and recorded as determined by the appropriate
DOE official.
(4) Identification markings must be removed, to the extent practical, before
disposal of property outside of DOE. If removal of the markings is
impractical, additional permanent markings must be added to the property
to indicate its disposal.

e. Records.

(1) The following types of personal property control records must be
established for DOE-owned personal property:
(a) Individual property control records must be established and
maintained for—
1 equipment and
2 sensitive property.
(b) Perpetual inventory records must be established and maintained for
the following.
1 Precious metals (to the nearest gram). However, records
for custodian holdings, by type, each having a value of
$250 or less may be waived by the appropriate DOE
official.
2 Stores inventories. Sub-stores inventory records must be
integrated with central stock records so that the total
amount of any item at all locations is known.
3 Stock records.
a Stock record accounts must be maintained for
personal property items under stock control for
more than 90 days.
b Stock records must be maintained when shop,
bench, cupboard, or site stock items are not
consumed or do not turn over in a reasonable period
of time (i.e., 90 days).
4 Potable alcohol. Records of potable alcohol must be
maintained on total quantities of 1 quart and above.
(c) Formal property control records are not required for
administratively controlled items and for information technology
that is past its defined service life (as provided in the DOE
Accounting Handbook) and not subject to High Risk or sensitive
item controls. However, the following types of records, where
applicable, are useful in managing these types of property.
1 Calibration records.
2 Maintenance records.
3 Tool crib records.
4 Equipment pool records.
5 Property passes.
(2) Property control and/or financial accounting records must include the
following basic information.
(a) Contract number or equivalent code designation.
(b) Acquisition document number and date.
(c) Asset type.
(d) Property control number.
(e) Description of item [nomenclature, serial number, Federal stock
group or national stock number (if available)].
(f) Manufacturer.
(g) Model number.
(h) Unit acquisition cost (including delivery and installation cost,
when appropriate).
(i) Depreciated value.
(j) Unit of measure.
(k) Quantity received, fabricated, issued, or on hand.
(l) Individual and organization accountable for the property.
(m) Location of property.
(n) Use status (active, storage, excess, etc.).
(o) High Risk designation.
(p) Any other data required by contract.
(q) Disposition document reference and date.
(r) Condition code.

f. Physical Inventories.

(1) Contractors may use the ASTM International voluntary consensus standard
for physical inventories, E 2132-01, Standard Practice for Physical
Inventory of Durable, Moveable Property.
(2) Physical inventories of personal property must be performed at the
following frequencies (or more frequently when determined necessary for
specific items or for effective accounting, utilization, or control at a given
location).
(a) Equipment—biennially.
(b) Sensitive items—annually.
(c) Stores inventories—annually.
(d) Precious metals—annually, with the following authorized
exceptions.
1 Precious metals, by type, each valued between $250 and
$500 with no consumption may be certified in writing by
the custodian.
2 Precious metals, by type, each valued at $250 or less may
be treated as consumed or expended.
(e) Administratively controlled items and information technology that
is past its defined service life (as provided in the DOE Accounting
Handbook) and not subject to High Risk and sensitive item
controls are inventoried as determined by the contracting officer
based on local management needs or as part of a wall-to-wall
inventory.
(3) The following methods will be used.
(a) The wall-to-wall inventory method is required for weapons,
ammunition, military property, and at contract completion or
within a 5-year cycle, whichever occurs first. A wall-to-wall
inventory may be performed for all other types of personal
property when determined necessary by the contracting officer.
(b) The following alternative methods may be used for the types of
personal property indicated when they are fully documented and
approved by the contracting officer.
1 Inventory by exception method—equipment and sensitive
items.
2 Statistical sampling method—stores inventories,
equipment, and sensitive items.
3 Electronic inventory method—information technology that
is connected to a network that permits use of this method.
(c) The statistical sampling method is only acceptable if it is
statistically valid and it produces acceptable results. If it does not
produce acceptable results, the wall-to-wall method must be used
to complete the physical inventory.
(d) Personnel other than the property custodians must perform the
physical inventories. Excluding weapons, ammunition, and
military property, inventories of property by the custodians, with
follow-on sample verification by property management
organizations, may be authorized where—
1 approved by the contracting officer and
2 strict individual custodial accountability is enforced.
(e) Precious metal quantities must be reconciled to the nearest gram.
(f) High Risk personal property must be managed in accordance with
the Department of Energy Property Management Regulation
(41 CFR 109).

g. Sensitive Items.

(1) As determined by the OPMO and/or the contracting officer, a list of those
items of personal property that are considered to be sensitive must be
developed and maintained by each DOE activity.
(2) The list must consist of—
(a) items, regardless of value, that require special control and
accountability because of susceptibility to unusual rates of loss,
theft, or misuse or due to national security and export control
considerations. Items include, but are not limited to, weapons,
ammunition, explosives, classified property, laptops, computers,
personal digital assistants, other information technology equipment
and removable components with memory capability, unless the
OPMO and/or contracting officer determines, with concurrence of
the property executive or designee, that a specific item should not
be included, and
(b) other items that the OPMO and/or contracting officer determines to
need special control and accountability.
(3) Items of equipment that are designated as sensitive items must be
controlled both as sensitive items and as equipment.
(4) Written procedures must address the following.
(a) Establishment of the appropriate supervisory levels for approval of
purchase requisitions or issue documents.
(b) Establishment of controls in the central receiving and warehousing
department, such as extraordinary handling and physical
protection, and the maintenance of a current listing of sensitive
items.
(c) Use of memorandum receipts or custody documents at the time of
assignment or change in custody.
(d) Establishment of custodial responsibilities describing the
requirement for—
1 appropriate physical and administrative controls, especially
for items assigned for general use within an organizational
unit, and
2 reporting changes in custody.

j. Administratively Controlled Items.

(1) Appropriate control techniques must be used to minimize waste and to
prevent loss, theft, unauthorized removal, and abuse of administratively
controlled items.
(2) Techniques must include use and review of—
(a) calibration and maintenance schedules,
(b) tool crib check controls,
(c) loss and theft reports,
(d) property pass systems,
(e) memoranda records,
(f) check-out procedures for transferring or terminating employees,
(g) perimeter fencing, and
(h) gate checks.

k. Stores Inventory Turnover Ratio. Investment in stores inventories will be
compared to annual stores to ensure minimum inventory levels are maintained.

l. Official Use of DOE-Owned Personal Property.

(1) General.
(a) Personal property will be used in the performance of official work
of the U.S. Government, except in emergencies threatening loss of
life or property, as authorized by law.
(b) Written procedures will document the prohibition against use, for
other than official purposes, and the penalties for misuse of
personal property.
(2) Motor vehicles. Vehicles must be managed in accordance with the
Department of Energy Property Management Regulation (41 CFR 109).

m. Loss, Damage, Destruction, or Unauthorized Use of Personal Property.

(1) Contractors may use the ASTM International voluntary consensus
standard, E 2131-01 Standard Practice for Assessing Loss, Damage, or
Destruction of Property. If the ASTM standard is used, the acceptable
loss, damage and destruction ratios listed in the standard apply unless
Departmental performance expectations require the use of different ratios.
This ASTM standard does not apply to DOE High Risk and sensitive
property, which requires 100% accountability.
(2) Contractors will be responsible and may be financially liable for loss,
damage, destruction, and unauthorized use of personal property in their
possession and control. Liability, if any, will be consistent with
48 CFR 970.5245-1, Property.
(3) All instances of loss, damage, destruction, or unauthorized use of personal
property, including property in the possession or control of subcontractors,
must be reported, documented, and investigated. As a minimum, this will
include the following.
(a) Notifying appropriate DOE offices and, when necessary, law
enforcement organizations as soon as possible but no later than
24 hours after the property loss becomes known.
(b) Determining the circumstance or cause.
(c) Determining responsibility and financial liability for repair,
replacement, or unauthorized use.
(d) Identifying actions taken to prevent—
1 further loss, damage, destruction, or unauthorized use of
property and/or
2 recurrence of the same or similar incidents.

n. Retirement of Property.

o. Disposal of Property.

(1) DOE excess personal property must be screened for Departmental
reutilization using the Energy Asset Disposal System (EADS). Property
not selected for DOE use that is eligible for further screening is
automatically screened Government-wide by the General Services
Administration’s (GSA) in GSAXcess.
(2) Nuclear-related property must be screened within DOE, however, not
reported to General Services Administration (GSA). Proliferation
sensitive property, identified as High Risk, must be screened within DOE
but not reported to GSA.
(3) Hazardous or suspected hazardous personal property must be checked for
contamination by environmental, safety, and health officials.
(4) Contamination-free personal property will be tagged with a certification
tag authorizing release of the property. Contaminated personal property
will be retained by the program office for appropriate disposal action.
(5) Contractors must establish surplus personal property sales operations when
heads of field organizations determine sales operations are in the best
interest of the Government. The contracting officer and program officials
must oversee these surplus sales to ensure personal property requiring
special handling and/or certification is processed and sold in accordance
with applicable regulations.
(6) Contractor employees may acquire surplus Government personal property,
provided they certify in writing before the sale award that they have not,
directly or indirectly—
(a) obtained information about the property not available to the
general public or
(b) participated in—
1 the decision to dispose of the personal property,
2 the preparation of the personal property for sale, and
3 the determination of the method of sale.
(7) Specially fitted clothing and other articles of personal property, acquired
for the exclusive, personal use of an individual contractor employee that
cannot be used by anyone else without substantial modification, may be
sold to the employee when the property is no longer required or the
employee is terminated.

AVAILABLE ONLINE AT: INITIATED BY:
http://www.directives.doe.gov Office of Management