CANCELED BY PIC 01-18

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00-09

Procurement Information Circular


July 13, 2000

REQUIRED NASA FORM (NF) 1018 INFORMATION

PURPOSE: To provide a transmittal letter advising contractors of supplementary information required for the NF 1018, NASA Property in the Custody of Contractors, as of September 30, 2000.

BACKGROUND: NASA must account for and report assets in accordance with 31 U.S.C. 3512 and 31 U.S.C. 3515. Office of Management and Budget Bulletin 97-01, Form and Content of Agency Financial Statements, requires compliance with Statements of Federal Financial Accounting Standard (SFFAS) number 6 and 8. These standards were developed by the Federal Accounting Standards Advisory Board (FASAB). Since the net value of property, plant and equipment in the custody of contractors represents 39 percent of the total value of this asset category on NASA's Statement of Financial Position, supplemental information is required from contractors during the NF 1018 reporting process.

PIC 99-10 established NF 1018 reporting requirements for September 30, 1999. The enclosed transmittal letter carries forward those reporting requirements for September 30, 2000. In response to contractors' requests, the NF 1018 format has been modified to clarify reporting requirements and facilitate data entry and adjustments to previously reported values. The report now requires the separation of values reported for types of deletions into capital and non-capital amounts to meet U.S. Government Standard General Ledger requirements. A modified NF 1018 is provided with the attachment and must be used for the 2000 report. To authorize the NF 1018 modification, this PIC provides the following NFS deviation:

1. The NF 1018 dated June 2000 shall be used instead of the version displayed in 1853.245-70.

GUIDANCE: No later than July 31, 2000, contracting officers shall send a copy of the enclosed transmittal letter and attachments to all contractors required to submit NF 1018 reports for the period ending September 30, 2000. The transmittal letter requires insertion of information unique to each contract; its attachments, and a blank copy of the June 2000 NF 1018, which should be sent without revision or addition.

EFFECTIVE DATE: This PIC is effective as dated and shall remain in effect until canceled or superseded.

CANCELLATION: PIC 99-10 is cancelled.

HEADQUARTERS CONTACTS: Jim Dolvin, Code HK, (202) 358-1279, email: jdolvin1@hq.nasa.gov; and Darwina Marks, Code BFZ, (202) 358-0989, email: dmarks@hq.nasa.gov

 

R. Scott Thompson
Director, Contract Management Division

Enclosures


PIC 99-10 Enclosure

TO: [insert contractor name and address]

FROM: Contracting Officer

SUBJECT: NASA Form (NF) 1018, NASA Property in the Custody of Contractors, Reporting Requirements for FY 2000

Additional supplemental information is required with the NF 1018 for the reporting period ending September 30, 2000. This information is necessary for Agency compliance with 31 U.S.C. 3512 and 31 U.S.C. 3515, and with Statements of Federal Financial Accounting Standards (SFFASs) recommended by the Federal Accounting Standards Advisory Board (FASAB) and approved by the Secretary of the Treasury, the Director of the Office of Management and Budget (OMB) and the Comptroller General. These standards are implemented through requirements promulgated in OMB Bulletin No. 97-01, Form and Content of Agency Financial Statements. NASA's implementation of these standards is closely scrutinized by its independent auditors.

For the NF 1018 report as of September 30, 2000, contractors shall provide supplemental information required by the enclosed schedule. The two schedules previously required have been combined into a single schedule to facilitate contractor reporting of the data. Additional guidance in a question and answer format can be found at: http://www.hq.nasa.gov/fmm/docs/qa1.htm

In response to contractors' requests, the value of assets not in use, i.e., those in the Plant Clearance Process, shall be included in the ending balances shown on the NF 1018, but reported in the supplemental schedule "Depreciation and Assets Not in Use Data for NF 1018 Reporting," so that NASA may delete these items from its accounts.

In addition, contractors shall include the value of heritage assets in their custody in the ending balances shown on their September 30, 2000, NF 1018, but report their values in the supplemental schedule and individually describe them in block 21, Comments. The description shall include the title of the item, its value and brief comments on why it is considered a heritage asset. Where heritage assets are reported which were not identified on a previous NF 1018, the cognizant NASA Center Financial Management Office will contact the contractor to discuss the item. If the Center concludes that the item is not a heritage asset, it will instruct the contractor not to so identify the item in future NF 1018 reports.

Heritage assets are property, plant and equipment that possess one or more of the following characteristics: historical or natural significance; cultural, educational or aesthetic value; or significant architectural characteristics. Examples of NASA heritage assets include buildings and structures designated as National Historic Landmarks and air and spacecraft and related components on display to enhance public understanding of NASA programs.

Heritage assets used to serve both a heritage and government operations function are considered multi-use if the predominant use is in general government operations. Multi-use heritage assets are considered general property, plant and equipment; they remain on NASA's balance sheet and are depreciated. Contractors should not, therefore, report multi-use heritage assets on the supplemental schedule.

Questions regarding reporting requirements should be directed to the Deputy Chief Financial Officer (Finance) of the cognizant NASA Center.

These requirements are considered within the scope of the contract and shall be implemented at no change in contract terms and conditions or [insert appropriate contract type terminology: e.g., price, target cost or profit, estimated cost or fee].

 

Signature


ATTACHMENT 1

Contract No. ___________________

Depreciation & Assets Not In Use Data for NF 1018 Reporting

(In Dollars)

Example of line item number classification account

Instructions:

This chart provides data NASA needs to calculate depreciation for its property, plant and equipment (PP&E) in the custody of contractors, to comply with Federal accounting standards. The following instructions apply:

Column a. - Use the useful lives indicated above for Buildings, Other Structures & Facilities, Leasehold Improvements, Special Test Equipment, Special Tooling and Agency-Peculiar property. (Land, Construction in Progress (CIP), Material and Contract Work in Process (CWIP) are not depreciated, so no depreciation data is required for those NF 1018 Property Classification Accounts.) For Equipment, NF 1018 Item 9, use the Federal Supply Classification (FSC) Table to group the Equipment by Useful Life categories shown on the above chart.

Column b. - Enter amounts reported in the Balance End of Period, NF 1018 column d.(1). Only report assets with acquisition values of $100,000 or more for all the above Property Classification accounts except CIP, Material, and CWIP, which should be reported at total acquisition cost, regardless of the amount. For Equipment, NF 1018 Item 9, determine what Equipment falls into each of the FSC groups shown on the FSC Table and then group the Equipment by Useful Life categories shown above.

Column c. - Enter the value of heritage assets and assets in the plant clearance process, i.e., after agency screening, but prior to actual disposal. Group by Property Classification Account and Useful Life. Only report assets with acquisition values of $100,000 or more for all the above Property Classification accounts except CIP, Material, and CWIP, which should be reported at total acquisition cost, regardless of the amount. The value of these assets are included in the ending balance (column d.(1)) of the NF 1018.

Column d. - Subtract column c. from column b. and enter the result.

Column e. - Enter the value of all property with acquisition values of $100,000 or more which are older than the useful life indicated in column a. This amount represents fully depreciated property. For Equipment, NF 1018 Item 9, determine what amount of the Equipment in each Useful Life category is older than its FSC Table useful life and enter these amounts in columns e. above for each of the five Equipment useful life categories (5, 7, 10, 15 and 20 years).

Column f. - Enter the value of all property with acquisition values of $100,000 or more which are younger than the useful life indicated in column a. This amount represents property not fully depreciated. For Equipment, NF 1018 Item 9, determine what amount of the Equipment in each Useful Life category is younger than its useful life and enter these amounts in columns f. above for each of the five Equipment useful life categories (5, 7, 10, 15 and 20 years).

The total of columns e. and f. for each Property Classification Account shall equal the total value shown for that Property Classification Account in column d. If you are using the electronic version of this document, an "Error" message will display if these totals do not balance.


ATTACHMENT 2

FSC Table

(for developing depreciation data for

NF 1018 Line Item #9, Equipment)

FSC

#

FSC Group Title

Useful Life

10

Weapons

15

11

Nuclear Ordinance

10

12

Fire Control Equipment

10

13

Ammunition and Explosives

10

14

Guided Missiles

15

15

Aircraft and Airframe Structural Components

20

16

Aircraft Components and Accessories

20

17

Aircraft Launching, Landing, and Ground Handling Equipment

10

18

Space Vehicles

15

19

Ships, Small Craft, Pontoons, and Floating Docks

15

20

Ship and Marine Equipment

15

22

Railway Equipment

7

23

Ground Effects Vehicles, Motor Vehicles, Trailers, and Cycles

10

24

Tractors

10

25

Vehicular Equipment Components

10

26

Tires and Tubes

Material

28

Engines, Turbines and Components

15

29

Engine Accessories

7

30

Mechanical Power Transmission Equipment

15

31

Bearings

Material

32

Woodworking Machinery and Equipment

7

34

Metalworking Machinery

15

35

Service and Trade Equipment

5

36

Special Industry Machinery

10

37

Agricultural Machinery and Equipment

7

38

Construction, Mining, Excavating, and Highway Maintenance Equipment

10

39

Materials Handling Equipment

10

40

Rope, Cable, Chain, and Fittings

Material

41

Refrigeration, Air-Conditioning, and Air Circulating Equipment

7

42

Fire Fighting, Rescue and Safety Equipment

10

43

Pumps and Compressors

10

44

Furnace, Steam Plant, Drying Equipment; and Nuclear Reactors

7

45

Plumbing, Heating, and Sanitation Equipment

10

46

Water Purification and Sewage Treatment Equipment

7

47

Pipe, Tubing, Hose and Fittings

Material

48

Valves

Material

49

Maintenance and Repair Shop Equipment

10

51

Hand Tools

5

 


FSC

#

FSC Title

Useful Life

52

Measuring Tools

7

53

Hardware and Abrasives

Material

54

Prefabricated Structures and Scaffolding

10

55

Lumber, Millwork, Plywood and Veneer

Material

56

Construction and Building Materials

Material

58

Communication, Detection and Coherent Radiation Equipment

10

59

Electrical and Electronic Equipment Components

10

60

Fiber Optics Materials, Components, Assemblies, Accessories

Material

61

Electric Wire and Power and Distribution Equipment

7

62

Lighting Fixtures and Lamps

10

63

Alarm, Signal and Security Detection Systems

5

65

Medical, Dental, and Veterinary Equipment and Supplies

7

66

Instruments and Laboratory Equipment

10

67

Photographic Equipment

10

68

Chemicals and Chemical Products

Material

69

Training Aids and Devices

10

70

General Purpose Automatic Data Processing Equipment (Including Firmware), Software, Supplies and Support Equipment

7

71

Furniture

10

72

Household and Commercial Furnishings and Appliances

5

73

Food Preparation and Serving Equipment

7

74

Office Machines, Text Processing Systems, and Visible Record Equipment

5

75

Office Supplies and Devices

Material

76

Books, Maps and Other Publications

5

77

Musical Instruments, Phonographs, and Home-Type Radios

10

78

Recreational and Athletic Equipment

7

79

Cleaning Equipment and Supplies

Material

80

Brushes, Paints, Sealers and Adhesives

Material

81

Containers, Packaging, and Packing Supplies

10

83

Textiles, Leathers, Furs, Apparel and Shoe Findings, Tents and Flags

5

84

Clothing, Individual Equipment, and Insignia

5

85

Toiletries

Material

87

Agricultural Supplies

Material

88

Live Animals

7

89

Subsistence

Material

91

Fuels, Lubricants, Oils and Waxes

Material

93

Nonmetallic Fabricated Materials

Material

94

Nonmetallic Crude Materials

Material

95

Metal Bars, Sheets, and Shapes

Material

96

Ores, Minerals, and Their Primary Products

Material

99

Miscellaneous

5

 

 ATTACHMENT 3 - Link to NF 1018