PIC 02-15

Canceled by PIC 03-18

02-15

Procurement Information Circular

August 2, 2002

REQUIRED NASA FORM (NF) 1018 INFORMATION

PURPOSE: To provide a transmittal letter advising contractors of supplementary information required to be submitted with the NASA Form (NF) NF 1018, NASA Property in the Custody of Contractors, as of September 30, 2002.

BACKGROUND: NASA must account for and report assets in accordance with 31 U.S.C. 3512 and 31 U.S.C. 3515. The Office of Management and Budget, in its requirements for the form and content of Agency financial statements, requires compliance with Statements of Federal Financial Accounting Standard (SFFAS) numbers 6 and 8. Supplemental information regarding Contractor-held property is necessary for NASA to comply with these standards.

PIC 01-18 established NF 1018 reporting requirements for September 30, 2001. The enclosed transmittal letter carries forward those reporting requirements for September 30, 2002. This PIC provides the following NFS deviation:

1. The NF 1018 dated August 2001 shall be used instead of the version displayed in 1853.245-70.

2. The definition for general purpose equipment is clarified to differentiate between auxiliary and stand-alone software. Software that is 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. All other software shall be reported as an individual item of equipment.

3. The definition for Material is amended to include costs of NASA-owned property held in inventory that may become a part of an end item or be expended in performing a contract regardless of whether or not it is unique to NASA programs.

4. The definition for Agency Peculiar Property is amended to include costs of completed items, capable of stand-alone operations, which are unique to NASA aeronautical and space programs. Spare parts shall be reported as Materials.

GUIDANCE: No later than August 31, 2002, 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, 2002. The transmittal letter requires insertion of information unique to each contract, its attachments, a blank copy of the NF 1018 supplemental data form, and a blank copy of the NF 1018 Electronic Submission System (NESS) access request, which should be sent without revision or addition.

The information contained in the NF 1018 report is entered into the NASA accounting system to reflect current asset values for agency financial statement purposes. Therefore, it is essential that required reports be received no later than October 31, 2002. Contracting officers should work with Center Deputy Chief Financial Officers (Finance) as appropriate to withhold payment when contractors do not submit NF 1018 reports in accordance with the provisions of 1845.505-14.

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

CANCELATION: PIC 01-18 is hereby canceled.

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

Tom Luedtke

Assistant Administrator for Procurement

Enclosures

PIC 02-15 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 2002

There are no changes to the NF 1018 reporting format. However, several property classification definitions are clarified or amended. General Purpose Equipment is clarified to differentiate between auxiliary and stand-alone software costs. Software that is 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. All other software shall be reported as an individual item of equipment.

The definition for Material was amended to include 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 regardless of whether or not it is unique to NASA programs. The definition for Agency Peculiar Property was amended to include costs of completed items, unique to NASA aeronautical and space programs which are capable of stand-alone operation. Spare parts shall be reported as Materials.

Contractors who submit the report using the NF 1018 Electronic Submission System (NESS) are not required to submit a paper copy of the report. If you have not submitted your report electronically previously, we encourage you to do so, and have attached for your convenience a NESS Access Request Form, with instructions for its completion and submission.

Contractors who do not submit their NF 1018 using NESS shall send the original signed report to the cognizant NASA Center Deputy Chief Financial Officer, Finance, and submit one copy (through the Department of Defense (DOD) Property Administrator if contract administration has been delegated to DOD) to the following address: [Insert name and address of appropriate NASA Center office].

Supplemental information is required with the NF 1018 for the reporting period ending September 30, 2002. 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). These standards are considered generally accepted accounting principles and as such are required for 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, 2002, contractors shall provide supplemental information in accordance with the enclosed schedule. Contractors shall continue to include the value of assets not in use, i.e., those in the Plant Clearance Process, and heritage assets in their custody in the ending balances shown on the NF 1018, and report their values in the supplemental schedule "Depreciation and Assets Not in Use Data for NF 1018 Reporting." Heritage assets shall also be individually described 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 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, as well as aircraft, 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 active property and must remain on NASA's balance sheet and are depreciated. Contractors should not, therefore, report multi-use heritage assets on the supplemental schedule.

Additional guidance on NF 1018 reporting (including a link to the NESS) can be found at: http://ifmp.nasa.gov/codeb/library/contractor_info.htm . Questions regarding reporting requirements should be directed to the Deputy Chief Financial Officer (Finance) of the cognizant NASA Center.

Signature

Attachment 1 - NF 1018 Supplemental Data Form

Attachment 2 - FSC Table

Attachment 3 -NESS Access Request and Instructions