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In a cost reimbursable contract to what level is consumable Contractor Acquired Property expected to be accounted for and reported on? (1 answer)

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If screws, nuts, bolts and other minor CAP items are purchased for incorporation into an end item deliverable system is it required that their use and cost be reported as part of monthly invoicing for material costs under a cost reimbursable contract or subcontract? How are excess of such items to be accounted for after the system is delivered? If a box of 100 screws were purchased and the entire value charged to the contract, what is the expectation with regard to the handling and accounting for the excess number of screws? I look forward to your response.

-- Updated Feb 27, 2015 --

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Sep 24, 2010

Interesting. Since no property ought to be provided either as furnished or with authorization to be reimbursed without a business case to justify it, it's unlikely that the effort to account for residual material of this nature would occur. The effort to account for, store, and report any excess would cause "cost creep" for administration. If this occurred, lessons need to be learned to avoid it in the future. The Contractor could have set up an accounting system that only charged for the materials issued, or the Owning Agency could have directed the delivery of the residual materials along with the end item. Please continue this discussion if desired by providing more specific details. Thanks!

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Private

Sep 24, 2010

Interesting. Since no property ought to be provided either as furnished or with authorization to be reimbursed without a business case to justify it, it's unlikely that the effort to account for residual material of this nature would occur. The effort to account for, store, and report any excess would cause "cost creep" for administration. If this occurred, lessons need to be learned to avoid it in the future. The Contractor could have set up an accounting system that only charged for the materials issued, or the Owning Agency could have directed the delivery of the residual materials along with the end item. Please continue this discussion if desired by providing more specific details. Thanks!