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EFFECTIVE DATE: This PIC is effective as dated and shall remain in effect until canceled or superseded.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