PART 1845
GOVERNMENT
PROPERTY
TABLE OF CONTENTS
SUBPART 1845.1 GENERAL
1845.102
Policy.
1845.102-70
NASA policy.
1845.102-71 Solicitation
and review procedures.
1845.103-70 General
1845.104 Responsibility and liability for
Government property.
1845.106 Transferring accountability.
1845.107
Contract
clauses.
1845.107–70 NASA solicitation
provisions and contract clauses.
SUBPART
1845.2 SOLICITATION AND
EVALUATION PROCEDURES
1845.201 Solicitation.
1845.201-70 NASA
solicitation preparation procedures.
1845.201-71 Plant
reconversion and plant clearance.
1845.202 Evaluation
procedures.
1845.202-70 NASA
evaluation procedures.
SUBPART
1845.3 AUTHORIZING
THE USE AND RENTAL OF GOVERNMENT
PROPERTY
1845.301 Use and rental.
1845.301-70 Use of property on
other Government contracts.
1845.301–71 Use
of Government property for commercial work.
1845.302 Use of
Government property on contracts with foreign governments or
international
organizations.
1845.303 Use of
Government property on independent research and
development
programs.
SUBPART 1845.4
[RESERVED]
SUBPART 1845.5 SUPPORT
GOVERNMENT PROPERTY ADMINISTRATION
1845.501-70 General
1845.503-70 Delegations
of property administration and plant clearance.
1845.503-71 Retention
of property administration and plant clearance.
1845.504-70 Responsibilities of
the Industrial Property Officer
1845.505-70 Responsibilities
of the Property Administrator.
1845.506–70 Responsibilities
of the Plant Clearance Officer.
SUBPART 1845.6 REPORTING, REUTILIZATION,
AND DISPOSAL
1845.602-1 Inventory disposal schedules.
1845.602-3 Screening.
1845.603 Abandonment, destruction or donation of excess personal
property.
1845.604 Restrictions
on purchase or retention of contractor inventory.
1845.604-4 Proceeds of sale.
1845.604-70 Contractor inventory in foreign countries
1845.605-70 Inventory disposal reports.
1845.606
Disposal of scraps.
1845.606-1 Submission.
1845.606-70 Contractor's
approved scrap procedure.
1845.606-71 Recovering precious metals.
1845.610 Sale of surplus 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.
SUBPART 1845.72 CLOSURE OF
CONTRACTS
1845.7201 Closure
of contracts.
1845.7202 Completion or termination.
1845.7203
Final review and closing of
contracts.
PART
1845
GOVERNMENT
PROPERTY
Subpart 1845.1—General
1845.102 Policy.
1845.102-70 NASA policy.
(a) In addition to the criteria cited in FAR 45.102 which must be
demonstrated before providing property to contractors, contracting officers
shall carefully consider the following factors when deciding if it is in the
Government’s best interest to provide Government property for the performance
of a contract. Providing Government
property —
(1) increases the Government’s administrative burden and
requires recordkeeping and personnel.
(2) may dilute the contractor’s overall responsibility and
weaken guarantees, end-item delivery requirements, and other contract terms.
(3) may make NASA responsible for delays in that the Agency
assumes responsibility for scheduling delivery of the property and the
operability of the property.
(4) carries its own inherent
risk that the property may be lost, damaged, destroyed or misused, resulting in
a loss of funds that could otherwise be used to support NASA’s mission.
(5) which is commercially available may confer a competitive
advantage to contractors who have not taken on the same investment risk as
their competitors. Contractors who plan
for the Government’s provision of commercially available equipment are passing
those investment risks to the Government.
(6) may be counterproductive to socio-economic programs which
encourage small businesses to develop through capital investment.
(b) The contracting officer shall obtain the approval of the
Center Real Property Accountable Officer prior to negotiating, or entering into
any real property leaseholds, permits, licenses or disposition actions. The contracting officer shall advise the
Center Real Property Accountable Officer when the place of performance is on a
NASA center or facility and the contractor will be offered space and utilities
under NFS1852.245-77.
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.
1845.103-70 General.
(a) Contracting officers are responsible for overall management of
their contracts, including the management of Government property provided to
contractors under NASA Contracts.
(b) Contracting officers shall fully document decisions to provide
property, including authorization for contractors to purchase property as a direct
cost to the Contract. This documentation
shall clearly demonstrate that the provision of property is in the Government’s
best interests in accordance with FAR 45.102.
(c) Contracting officers
shall review the contractor’s requests for provision of Government property
under the clause at 1852.245-70 to determine whether authorizing the provision
of Government property is an appropriate business decision according to the
policy at 1845.102-70(a).
(d) Contracting officers may solicit the opinion of the technical
officer regarding the technical need for the property. However, technical need,
in and of itself, is not sufficient reason for providing Government
property. If the property is required to
satisfy technical needs, it is still assumed to be in the Government’s best
interest to require the contractor to use contractor-owned property for
contract performance.
(e) Contracting officers shall assure that all changes to contract
property involving the provision of additional Government-furnished property or
reduction of existing property are noted in the contract by insertion or
modification of the clause at 1852.245-76, and are recorded or reported for
recording in the appropriate NASA property management information records.
(f)
Contracting officers shall document the file on the determination to provide
Government property and shall forward copies of any approved requests to —
(1) The Center Deputy Chief Financial Officer (DCFO) when an
item of property or, in the case of a contract for construction, the total
value of property being constructed by the contractor is expected to result in
the acquisition or construction cost exceeding the NASA capitalization
threshold of $100,000; and,
(2) The NASA Center IPO, when the contractor is not authorized
to conduct its own screening of available inventory.
(g) IPOs shall coordinate screening with center reutilization
personnel to determine the availability of existing Government inventory and
excess.
(1) The IPO shall notify the contracting officer (CO) of the
availability of property as soon as possible after receipt of the approved
request from the CO.
(2) The IPO shall assist the CO in the coordination of the
transfer and oversee property documentation of the transfer of existing
Government property to the contractor.
1845.104 Responsibility and liability for
Government property.
(b) When the Property Administrator, with the concurrence of the
Industrial Property Officer (IPO), determines and reports that the contractor’s
property management practices are inadequate and/or present an undue risk to
the Government, contracting officers shall revoke the Government’s assumption
of risk or take other action to mitigate the risk of loss, damage, destruction,
or theft of Government property.
1845.106 Transferring Accountability.
(a) When furnishing existing Government property to the
contractor, contracting officers shall —
(1) Insert NFS
clause 1852.245-76, List of
Government Property Furnished Pursuant to FAR 52.245-1, if not already included in the contract; and
(2) Modify the list
in 1852.245-76 to include any property furnished after award.
(b) In addition to
modification of the list, transfers of property shall be recorded on a
“shipping” or “transfer” document such as the DD Form 1149 “Shipping/Transfer
Document”.
(1) Centers may use
equivalent documents that contain the same information.
(2) This requirement
includes physically transferred property and property transferred in
place.
(3) Contracting
officer technical representatives are responsible for creation of shipping
documents, based on the contractor’s requests and contracting officer’s
approval, and are considered “shippers” for this purpose.
(4) Shippers will
segregate items valued over $100,000 and request the transfer of these items on
separate documents.
(5) The transfer
documents must be complete and must include the following information for all
items with a value greater than $5,000:
Description of Property; Property Identification Number; Value; Capital
Value (if applicable); Property Classification; Federal Supply Classification;
Gaining Contract; Acquisition Date.
(6) Contracting officers must approve all shipping documents prior
to property movement.
(c) In addition to the requirements in paragraphs
(a) and (b), when property valued at $100,000 or more is received and accepted
by NASA or NASA’s representative within the contractor’s facilities, and that
property is to remain in the contractor’s custody for further work or to be otherwise
used in the performance of the contract, the property must be added to the
appropriate NASA property system in accordance with NPR 4200.1, NASA
Equipment Management Procedural Requirements
and NPR 4200.2, Equipment Management Manual for Property Custodians.
1845.107 Contract clauses.
1845.107–70 NASA
solicitation provisions and contract clauses.
(a)(1) The contracting officer shall insert
the clause at 1852.245–70, Contractor Requests for Government-Provided
Property, in cost reimbursement solicitations and contracts.
(2) Use the clause with its Alternate I
when the center Supply and Equipment Management Officer (SEMO) consents to
permit the contractor to screen Government inventory for available property in
lieu of contractor acquisition of new items.
(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 leased by NASA.
(2) Use of this clause is subject to
the SEMO’s concurrence that adequate Government 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 the
property and make it 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) For contractors with both onsite
and offsite performance requirements, contracting officers shall list
Government property provided for offsite use separately in the contract. This
Government property is furnished under FAR 52.245–1, Government Property, and
remains accountable to the contractor during its use on the contract. This
Government property is not subject to the clause at 1852.245–71,
Installation—Accountable Government Property. 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.
(c) The contracting officer shall insert the
clause at 1852.245–72, Liability for e
Government
Property Furnished for Repair or Other Services, in fixed-price, time-and-material,
and labor-hour 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 solicitations and 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 solicitations and 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) The contracting officer shall insert the
clause at 1852.245–74, Identification and Marking of Government Property, in
solicitations and contracts that—
(1) Include the clause at FAR 52.245–1;
or
(2) Require the delivery of supplies.
(f) The contracting officer shall insert the
clause at 1852.245–75, Property Management Changes, in solicitations and
contracts that provide for progress payments or include any of the property
clauses prescribed in FAR Part 45.
(g) The contracting officer shall insert the
clause at 1852.245–76, List of Government Property Furnished Pursuant to FAR
52.245–1, in solicitations and contracts when 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 Government Property Furnished Pursuant to FAR
52.245–2, in solicitations and contracts containing the clause at 52.245–2,
Government Property Installation Operation Services. In addition, the
contracting officer shall insert the following language in the blanks in
paragraph (e) of the clause at 52.245–2:
‘‘The Government property provided
under this clause is identified in clause 1852.245–77 of this contract.’’
(i) The contracting officer shall insert the
clause at 1852.245–78, Physical Inventory of Capital Personal Property, in cost
reimbursement and fixed-price solicitations and contracts that provide
Government property.
(j) The contracting officer shall insert the
clause at 1852.245–79, Records and Disposition Reports for Government Property
with Potential Historic or Significant Real Value, in solicitations and
contracts when, after consultation with the center Historic Preservation
Officer, it is determined that the items acquired for or produced by the
contract are likely to have historic significance or increased value due to
their use in support of NASA projects and programs.
(k)(1) The contracting officer shall insert
the provision at 1852.245–80, Government Property Management Information, in
solicitations when it is known, or there is a reasonable chance, that
Government property will be provided to the contractor for contract
performance.
(2) The contracting officer shall use
the provision with Alternate 1 when there are sufficient time and resources to
allow prospective contractors the opportunity to inspect the property.
(l) The contracting officer shall insert the
provision at 1852.245–81, List of Available Government Property, in
solicitations when Government property will be made available for contract
performance.
(m) The contracting officer shall insert the
clause at 1852.245–82, Occupancy Management Requirements, in solicitations and
contracts that require performance on, or in, any NASA Center, Installation,
facility or other NASA owned property.
(n) The contracting officer shall insert the
clause at 1852.245–83 Real Property Management Requirements, in solicitations
and contracts for acquisition, construction, modification (including when the
modification is a consequence of another approved task, e.g., installation of
telephonic or local area network equipment), demolition, or management of real
property.
Subpart
1845.2—Solicitation and Evaluation Procedures
1845.201 Solicitation.
1845.201-70 NASA solicitation preparation
procedures.
(a) The contracting officer shall provide a copy of the
solicitation (or contract if no solicitation is used) to the center Industrial
Property Officer (IPO) for review when --
(1) A cost-reimbursement contract is anticipated;
(2) The value of the acquisition exceeds the simplified
acquisition threshold and the work is to be performed within the physical
confines of the center;
(3) Existing Government property may be furnished; or
(4) Contractors may acquire property that will be titled to the
Government under the provisions of FAR 52.245-1, Government Property.
(b) IPOs shall review the solicitation to —
(1) Ensure the correct application of property clauses based on
the contract type, situation, and product or services ordered;
(2) Ascertain the contract’s possible impact on center property
or logistics operations and advise the center’s Supply and Equipment Management
Officer of those possible impacts; and
(3) Assure that appropriate property transactions for existing
Government property, from internal sources and prior contracts, have been
properly reported to NASA property and financial systems.
(c)(1) Items of Government property used to support NASA programs
often become historically significant.
In addition, property used by NASA programs often has value that exceeds
other property with identical material or physical characteristics. This is particularly true for property that
has flown in space. Descriptions of
physical characteristics and condition are insufficient to determine an item’s
historic significance or real value.
NASA Center Historic Preservation Officers are responsible for determining
whether property meets the criteria for designation as historically
significant. It is essential that items
of historic significance are retained for the benefit of current and future
generations. NASA must also obtain
maximum value for property offered for sale.
(2) The contracting officer shall contact the Center Historic
Preservation Officer to determine whether the items acquired for or produced by
the contract are likely to have historic significance or increased value due to
their use in support of NASA projects and programs.
(3) Center Historic Preservation Officers shall advise the
contracting officer when they believe that property produced or acquired for
the Government under the contract may have increased historic significance or
increased value due to its use in support of NASA activities or programs.
1845.201-71 Plant reconversion and plant
clearance.
The Assistant Administrator for Procurement 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.
1845.202 Evaluation procedures.
1845.202-70 NASA evaluation procedures.
(a) The contracting officer shall request Industrial Property
Officer (IPO) or Property Administrator (PA) assistance in evaluations of the offeror’s proposed systems, standards and practices for the
management of Government property.
(b) The contracting officer shall provide the offeror’s
proposed property management standards and practices to the IPO for review and
evaluation prior to award.
(c) IPOs shall review proposals to determine whether or not the offeror’s proposed industry leading standards and practices
and/or voluntary consensus standards are sufficient to manage property, from planning
through disposition, under the circumstances of the contract.
(1) If the IPO is unfamiliar with the offeror,
the circumstances of the contract or the performance situation, the IPO may
request the assistance of the cognizant PA for
evaluation of the standards, practices, situation and history of property
management performance at the offeror’s place of
performance.
(2) The IPO shall provide a written evaluation, listing any
proposed changes or improvements, to the contracting officer prior to award.
(d) The contracting officer shall require changes or improvements
to the offeror’s property management practices,
standards, or processes as recommended by the IPO. The contracting officer shall advise the offeror that its property management practices, standards,
and processes will not be considered adequate for the protection, preservation,
and management of Government property, and that the Government will not accept
risk under the property clause until the recommended changes or improvements are
made.
(e) When an offeror’s proposal requests
the Government to provide commercially available equipment, and the
commercially available equipment is not required as an end item deliverable or
part thereof, the contracting officer should assure the integrity of the
competitive process by —
(1) Adjusting the offeror’s proposal to
compensate for the value of the Government-provided, commercially available
equipment; or
(2) Charging appropriate rent in accordance with the clause at
FAR 52.245-9, Use and Charges. As the purpose for rent is to obtain just
consideration for the Government’s assumption of risk and cost, rent for
commercially available equipment provided after award may not be treated as an
allowable direct cost under the contract.
Subpart
1845.3—Authorizing the Use and Rental of Government Property
1845.301 Use and rental.
1845.301-70 Use of property on other Government
contracts.
(a) NASA contracting officers having cognizance over NASA property
may authorize its rent-free use on other NASA contracts and 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.
(b) Contracting officers shall obtain the concurrence of the
gaining contracting officer when they intend to authorize the rent free use of
Government property for performance under the gaining contracting officer’s
cognizance.
1845.301–71 Use of Government property for commercial work.
(a) The coverage at FAR 45.3 applies to a
contractor’s commercial (any non-Government) use of any NASA equipment.
(b)(1)
The Center Procurement Officer is the approval authority for non-Government use
of equipment exceeding 25 percent.
(2) 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 $100,000 at any single location may
be averaged over a quarterly period.
Equipment having a unit acquisition cost of $100,000 or more shall be
considered on an item-by-item basis.
(3) Approvals for non-Government use, less than 25 percent,
may not exceed 1 year. Approval for
non-Government use in excess of 25 percent shall not exceed 3 months.
(4) Requests for
the approval shall be submitted to the Center Procurement Officer at least 6
weeks in advance of the projected use and shall include—
(i) The number of equipment items involved and
their total acquisition cost; and
(ii) An
itemized listing of equipment having an acquisition cost of $100,000 or more,
showing for each item the nomenclature, year of manufacture, and acquisition
cost.
1845.302 Use of Government property on contracts
with foreign governments or international organizations.
(a) NASA contracting officers will recover a
fair share of the cost of Government property if such property is used in
performing services or manufacturing articles for foreign countries or for
international organizations.
(b) Contracting officers shall obtain written
authorization from the Assistant Administrator for Procurement and concurrence
from the Manager of Contract Property Programs, Logistics Division, Office
of Strategic Infrastructure; the Office
of General Counsel (Headquarters); and the Headquarters Office of External
Relations before allowing the use of Government production and research
property on work for foreign countries or for international organizations.
(c) Contracting officers
shall forward requests, 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 property is controlled;
(3) A description of
the property;
(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 property 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 45.3.
1845.303 Use of Government property on
independent research and development programs.
(a) The contracting officer
shall not authorize contractor use of Government property for independent
research and development on a rent-free basis except in unusual circumstances
and after a written determination that –
(1) 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
(2) No competitive
advantage will accrue to the contractor through such use (see FAR 45.103(a)(2)).
(b) Contracting officers shall utilize the same approval requirements as
under 1845.301-71.
Subpart
1845.4—Reserved
Subpart
1845.5—Support Government Property Administration
1845.501-70 General
(a) The contracting officer will provide copies of contracts,
modifications and related documents to the Center Industrial Property Officer.
(b) When the Industrial Property Officer or
Property Administrator determines that the contractor’s proposed systems,
standards and practices for the management of Government property are
inadequate to manage Government property, the Contracting Officer should: (1)
Require the contractor to provide a written revision that addresses the
determination of the Industrial Property Officer or Property Administrator.
1845.503-70 Delegations of property administration
and plant clearance.
(a) NASA contracting officers shall delegate property administration
and plant clearance for contracts performed outside of NASA centers,
installations and facilities when:
(1) The contract is a cost type contract;
(2) The contract is a fixed price contract that contains a
cost element allowing or requiring the contractor to acquire property on behalf
of the Government and that property is titled to the Government by operation of
the FAR property clause;
(3) The contract is a fixed price contract and Government
property is furnished; or,
(b) NASA Contracting officers may retain property administration
and plant clearance, in accordance with 1845.503-70, only when there is a
compelling need, such as a security requirement or safety requirement that
would prohibit a non-cleared property administrator or a plant clearance
officer from performing these services.
(c) Delegation of property administration activities to other
agencies will be made according to the special delegation instructions issued
by Logistics Division, Office of Strategic Infrastructure. Variance from these
delegations instructions must be authorized by Logistics Division, Office of
Strategic Infrastructure.
(d) Contracting officers shall retain property administration and
plant clearance for all contractors where the place of performance is within a
NASA Center, Installation or Facility.
(e) Under the clause at 1852.245–71,
Installation-Accountable Government Property, property is managed by center
logistics functions using NASA internal policy and procedural guidance, except—
(1) When contractors are provided or
are allowed the use of property that is not governed by that procedural
guidance, management of that property is governed by the applicable FAR clause.
(2) When the contractor is responsible
for performance of any segment of a property system under a FAR property
clause, then property administration and plant clearance are required.
1845.503-71 Retention of property administration
and plant clearance.
(a) Contracting officers may retain property administration
functions and responsibilities by written notification of the Center Industrial
Property Officer. Contracting officers
who retain property administration must perform property administration in
accordance with the requirements of this subsection, FAR Part 45, and DOD
instructions for property administration.
The written notification must contain:
(1) A plan for performance of property system reviews;
(2) A procedure that allows for the maintenance of property
management records for items transferred to and from the contractor, the
collection and dissemination of property and property related financial reports
and the proper disposition of Government property in accordance with Federal
Management Regulations and FAR 45.6;
(3) A plan for coordination of support property
administration functions with the cognizant agency; and,
(4) Procedures for disposition of Government property, according to FAR and Federal Management Regulations, and for required reporting of disposition actions; and,
(5) Concurrence of the Center Procurement Officer.
(b) When the contracting officer retains property administration
and plant clearance, the contracting officer shall provide annual reports to
the Industrial Property Officer and the Center Property Accountant detailing:
(1) The status of the annual property control system review;
(2) Any incidence of Loss, Damage or Destruction and the
contracting officer’s determination of liability;
(3) The status of the contractor’s physical inventory of
property; and
(4) Final reports of disposition of Government property.
1845.504-70 Responsibilities of the Industrial
Property Officer
This section describes the functional management responsibility
for contract property. Beyond individual
contracting officers, each NASA installation director will appoint an
industrial property officer to manage and coordinate property matters among the
various contracting officers, technical officials, contractor officials,
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, non-profit research institutions and 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 the applicable FAR Government property clause and financing
clauses such as the Progress Payments Clause.
(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 the Manager, Contract
Property Programs, Logistics Division, Office of
Strategic Infrastructure of any severe or continuing problems.
(2) Provide property administrators copies of all pertinent
contract property documentation.
(g) Review, analyze and
verify that the contractor’s property management system is capable of producing
a correct and complete NASA Form 1018, NASA Property in the Custody of
Contractors.
(h) Review property administrators’ approvals of relief of
responsibility for lost, damaged, and destroyed property and question the
contractor regarding the need for any excessive or repetitive approvals.
(i) When appropriate, make
recommendations to source and performance evaluation boards regarding property
management and award fee criteria and evaluations regarding property
management.
(j) Monitor plant clearance status to preclude delays in contract
closeout.
(k) 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.
(l) Perform, or assure the performance of, on-site property
administration and plant clearance and the property is
not subject to the clause at 1852.245-71, Installation-Accountable Government
Property.
1845.505-70 Responsibilities of the Property
Administrator.
(a) When property administration is not delegated to DOD, the NASA
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 property system review program
for each contractor under the property administrator’s cognizance;
(2) Evaluating the results of contractor’s property control
activities and, when necessary, recommending that the contracting officer
revoke the Government’s assumption of risk for loss, damage or destruction of
Government property;
(3) Advising the contracting officer of 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 cost 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.) Property Administrators shall use, and not repeat, the work of
Government auditors or other cognizant Government review activities unless that
work does not satisfy the property control system audit requirements set forth
in the DoD property guidance and related NASA
instruction.
(b) Property administrators will assist the contracting officer in
pre award activities.
(1) Property administrators will review the contractor’s
proposed standards and practices to assess their suitability for the pending
contract and will so advise the contracting officer.
(2) Property administrators will advise the contracting
officer regarding the contractor’s demonstrated past performance in property
management, including their ability or inability to perform to the proposed
standards or execute the practices they have proposed for the pending contract.
(c) When the property administrator
determines that all or a portion of a contractor’s property management
practices and processes do not afford sufficient protection against loss,
damage or destruction of Government property:
(1) The property administrator shall
increase surveillance to prevent, to the extent possible, any loss, damage, or
destruction of Government property; and
(2) Advise the contracting officer of
any known or reported incidence of loss, damage or destruction identified
during any period in which the contracting officer has revoked the Government’s
acceptance of risk.
(d) The property administrator shall review
records and the results of contractor actions to identify any and all incidence
where the contractor fails to report property no longer required for
performance for periods longer than called for in their standards and
practices.
(e) 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 equipment, the property administrator
shall—
(1) Assure the preparation and submission of individual
reports required of the contractor;
(2) Verify the permit certifications required by the forms;
and
(3) Transmit the report to the NASA Industrial Property
Officer.
(f) Upon completion or termination of a contract, the property
administrator shall—
(1) Monitor the actions of the contractor in returning
excess Government property not referred to the plant clearance officer; and
(2) Advise the cognizant plant
clearance officer as to the existence at a contractor’s plant of residual
property requiring disposal.
(3) 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—
(i) Disposition of
Government property has been properly accomplished and documented;
(ii) Adjustment documents, including any request of
the contractor for relief from responsibility, have been processed to
completion;
(iii) 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;
(iv) All questions
regarding title to property fabricated or acquired under the contract have been
resolved and appropriately documented; and
(v) The contract property control record file is
complete and ready for retirement.
(4) 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.
(5) The Property Administrator shall forward the complete
and signed DD Form 1593 to the contracting officer, and so annotate the
Property Summary Data Record.
(6) The contracting officer shall include the DD form 1593
in the official contract file.
1845.506–70 Responsibilities of the plant clearance
officer.
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 and providing feedback to the Property
Administrator regarding the contractor’s performance in property disposal
activities;
(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; and
(m) Recommending the reasonableness of
selling expenses related to any contractor-conducted sales.
(n) Seeking the advice and concurrence of the General Counsel regarding
antitrust actions when needed.
(o) Assuring that the center equipment manager is advised of, and
receives documentation for, all capital valued property that has been reported
for disposition.
(p) Advising the contracting officer regarding all disposition
actions and activities.
Subpart 1845.6—Reporting,
Reutilization, and Disposal
1845.602-3 Screening.
(a) Property Disposal Officers (PDOs) are the center focal points for intra-agency reutilization screening.
(1) When property is reported for disposition through PCARSS or on manual inventory schedules, PDOs shall make that information available to procurement and program offices seeking to acquire similar, new property in accordance with the agency inventory and other agency excess utilization requirements of FAR Part 8.
(2) When property is reported for disposition through NASA DSPL systems, the PDO shall screen and process the disposition in accordance with NPR 4200.1, NASA Personal Property Disposal Procedural Requirements and related guidance.
(b) Waiver of screening requirements. The Director, Logistics Division Office of Strategic Infrastructure will approve deviations from intra-agency screening requirements.
1845.603 Abandonment, destruction or donation of excess personal property.
The center property disposal officer (PDO) shall review abandonment or destruction determinations in accordance with NPR 4300.1.
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.
1845.604-4
Proceeds of sale.
(a) Sale of surplus contractor inventory. 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.
1845.604-70 Contractor inventory in foreign countries.
NASA procedures for disposal are in NPR 4300.1, NASA Personal Property Disposal Procedures and Guidelines.
1845.605-70 Inventory disposal report.
A copy of Standard Form 1424, Inventory Disposal Report, shall be provided to the center industrial property officer or the PDO.
1845.606
Disposal of scrap.
1845.606-70 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 production scrap 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 NFS 1845.
1845.606-71 Recovering precious metals.
Silver, gold, platinum, palladium, rhodium, iridium, osmium, and ruthenium; scrap bearing such metals; and items containing recoverable quantities of them shall be reported through the NASA PDO for disposition in accordance with NASA instructions.
Subpart 1845.70—Reserved
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 NASA Center, contracts of different NASA Centers, a contract of one NASA Center to another, a NASA Center to a contract of another NASA Center, and a contract to another Government agency or its contract). To enable NASA to properly control and account for all transfers, they shall be adequately documented. Adequate documentation includes the appropriate dollar amount of the asset(s) transferred (as prescribed in 1845.7101-3) and the formal, signed NASA or contractor authorization approving the transfer. In addition, procurement, property, and financial organizations at NASA Centers must affect all transfers of accountability, although physical shipment and receipt of property may be made directly by contractors. The procedures described in this section shall be followed to provide an administrative and audit trail, even if property is physically shipped directly from one contractor to another. Property shipped between September 1 and September 30, inclusively, shall be accounted for and reported by the shipping contractor, regardless of the method of shipment, unless written evidence of receipt at destination has been received. Repairables provided under fixed price repair contracts that include the clause at 1852.245-72, Liability for Government Property Furnished for Repair or Other Services, remain accountable to the cognizant NASA Center and are not reportable on NF 1018; repairables provided under a cost-reimbursement contract, however, are accountable to the contractor and reportable on NF 1018. All materials provided to conduct repairs are reportable, regardless of contract type.
(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. 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 NASA Center Accountability. Deletion amounts that result from transfer of accountability to the NASA Center responsible for the contract, whether or not items are physically moved.
(d) Transferred to Another NASA Center. Deletion amounts that result from transfer of accountability to a NASA Center other than the one responsible for the contract, whether or not items are physically moved.
(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.
Subpart
1845.72—Closure of Contracts
1845.7201 Closure of contracts.
1845.7202
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.
1845.7203
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.
[ccw1]Delete – already in 1845.603