Cancelled by PIC 98-4

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95-8

Procurement Information Circular

(October 11, 1995)

CLASS DEVIATION FROM FEDERAL ACQUISITION REGULATION
(FAR) PART 45

PURPOSE: To adopt for NASA the class deviation to FAR Part 45 approved on July 14, 1995 by the Director, Defense Procurement (memorandum enclosed).

BACKGROUND: The Department of Defense (DOD) is sponsoring an initiative to rewrite FAR Part 45, Government Property, to make it easier to understand and to minimize the burdens imposed on contractors and the Government. The enclosed deviation has been approved as an interim measure to reduce property recordkeeping and physical inventory requirements for low value property, which is defined in the deviation. However, property records must still be kept, and property reporting is not affected by the deviation.

GUIDANCE. This class deviation is mandatory for all solicitations issued after receipt of this PIC, except solicitations for contracts performed entirely, or in substantial part, on NASA installations. In these cases, the deviation may be used at the contracting officer's discretion. Existing contracts may be modified to incorporate the provisions of the deviation only if appropriate consideration is obtained. There is no change to the NASA FAR Supplement as a result of this deviation.

EFFECTIVE DATE. This PIC is effective as dated and shall remain in effect until July 14, 1997, or until FAR Part 45 is revised to include the provisions contained in the deviation, whichever occurs first.

HEADQUARTERS CONTACT. Larry G. Pendleton, Jr., Code HK, (202) 358-0487

Anne Guenther
Director, Contract Management Division

Enclosures

 

OFFICE OF THE UNDER SECRETARY OF DEFENSE
300 DEFENSE PENTAGON
WASHINGTON DC 20301

JUL 14 1995

In reply refer to
DAR Tracking Number: 95-00001

MEMORANDUM FOR DIRECTORS OF DEFENSE AGENCIES
DEPUTY FOR ACQUISITION AND BUSINESS MANAGEMENT
ASN(RD&A)/ABM
DEPUTY ASSISTANT SECRETARY OF THE AIR FORCE
(CONTRACTING), SAF/AQC
DIRECTOR PROCUREMENT POLICY, ASA(RD&A)/SARD-PP
DEPUTY DIRECTOR (ACQUISITION), DEFENSE LOGISTICS

AGENCY

SUBJECT: Class Deviation from Federal Acquisition Regulation
(FAR) Part 45

The Department of Defense is sponsoring an initiative to rewrite FAR Part 45, Government Property. to make it easier to understand and to minimize the burdens imposed on contractors and the Government. As an interim step, I authorize the military departments and defense agencies to deviate from certain requirements in FAR Part

45. This class deviation reduces the current property recordkeeping and periodic physical inventory requirements for low value property,which is defined as Special Tgoling, Special Test Equipment, and Plant Equipment with an acquisition cost of $l500 or less, and permits contractors to defer eporting the loss, damage or destruction of low value property until contract termination or completion.

This class deviation is mandatory for all solicitations issued subsequent to receipt of this memorandum except solicitations for service contracts to be performed at military installations. For the excepted solicitations, the deviation may be used at the contracting officer's discretion. Contracting officers may modify existing contracts to include those provisions only if adequate consideration is obtained.

The class deviation is authorized through July 14, 1997 or until FAR Part 45 is revised to include these provisions, whichever occurs first. This class deviation does not affect special tooling deviation 94-00007.

Eleanor R. Spector

Director, Defense Procurement

Attachment

45.101 Definitions

["Low Value Property," as used in this part, means Government property in the classes special tooling, special test equipment, and plant equipment with an acquisition cost of $1500 or less. Specifically excludeded from this definition are agency-peculiar property, material, real property, and sensitive property.]

["Sensitive Property," as used in this part, means Government Property for which the theft, loss, or misplacement could be potentially dangerous to the public health or safety, or which must be subject to exceptional physical security, protections control, maintenance or accountability, including but not limited to hazardous property, precious metals, arms, ammunition, and explosives and classified property.]

45.504 Contractor's liability.

(a) (no change)

(b) The contractor shall investigate and report to the property administrator all cases of loss, damage, or destruction of Government property in its possession or control as soon as the facts become known or when requested by the property administrator. [ Loss, damage, or destruction of items of low value property shall be reported upon contract termination, completion, or when needed for continued contract performance.] A report shall also be furnished when completed and accepted products or end items are lost, damaged, or destroyed while in the contractor's possession or control.

(c) (no change)

45.505 Records and reports of Government Property

(a) - f ) (no change)

(g) [With the exception of low value property, the contractor's property control system shall contain a system or technique to locate any item of overnment, property within a reasonable period of time.

45.505-1. Basic Information.

(a) Unless summary records are used as authorized under paragraph (b) of this section, the contractor's property control records shall provide the following basic information for every item of Government property in the contractor's possession, regardless of value (See paragraph(c) below for exceptions, as well as,] other subsections of 45.505 [which] require additional information for specific categories of Government property)

(1) - (7) (no change)

(b) (no change)

[(c) The contractor's property control records for each item of low value property in the contractor's possession shall provide the basic information listed in paragraphs (a) (1) through (a) (7) of this section. With respect to the location of each item of low value property, the contractor is not required to update changes in location occurring after the establishment of the official Government Property record. This exception does not apply to sensitive property as defined this part.]

45.508 Physical inventories.

[(a)] The contractor shall periodically physically inventory all Government propeperty (except materials issued from stock for manufacturing, research, design, or other services required by the control and shall cause subcontractors to do likewise. [With the exception of inventories conducted upon termination or completion, as discussed in 45.508-1, this requirement does not apply to items of low value property.] The contractor, with the approval of the property administrator, shall establish the type, frequency, and procedures. These may include electronic reading, recording and reporting or other means of reporting the existence and reconciling the records. Type and frequency of inventory should be based on the contractor's established practices, the type and use of the Government property involved and its monetary value, and the reliability of the contractor's property control system. Type and frequency of physical inventories normally will not vary between contracts being performed by the contractor, but may vary with the types of property being controlled. Personnel who perform the physical inventory shall not be the same individuals who maintain the property records or have custody of the property unless the contractor's operation is too small to do otherwise.

[(b) If the contractor's property control system is disapproved the contractor shall perform a physical inventory and report all loss, damage, or destruction of Government property prior to reapproval of the property control system.]

52-245-2 Government Property, (Fixed-Price Contracts), Alternate I. (Dev)(JUL 1995)

As prescribed in 45.106(b)(2), substitute the following paragraph (g) for paragraph (g) of the basic clause:

(g) Limited Risk of loss.

(1)-(5) (no change)

(6) [The contractor shall notify the contracting officer [u]pon loss or destruction of, or damage to, Government property provided under this contract, [with the exception of low value property for which loss, damage, or destruction is reported at contract termination, completion, or when needed for continued contract performance. The Contractor shall take all reasonable action to protect the Government property from further damage, separate the damaged and undamaged Government property, put all the affected Government property in the best possible order, and furnish to the Contracting Officer a statement of..(7)-(10) (no change)

52-245-2 Government Property (Fixed-Price Contracts), Alternate II. (DEV) (JUL 1995)

As prescribed in 45.106(b)(3), substitute the following paragraphs (c) and (g) for paragraphs (c) and (g) of the basic clause:

(c) (no change)

(g) Limited Risk of loss.

(1)-(5) (no change)

(6) [The contractor shall notify the contracting officer [u)pon loss or destruction of, or damage to, Government property provided under this contract, witb the exception of low value property for which loss, damage, or destruction is reported at contract termination, completion, or when needed for continued contract performance. The Contractor shall take all reasonable action to protect the Government property from further damage, separate the damaged and undamaged Government property, put all the affected Government property in the best possible order, and furnish to the Contracting Officer a statement of-

(7)-(10) (no change)

52.245-5 Government Property (Cost-Reimbursement,

Time-and-Material. or Labor-Hour Contracts). (DEV)(JUL 1995)

As prescribed in 45.106(f)(1), insert the following clause:

GOVERNMENT PROPERTY (COST-REIMBURSEMENT, TIME-AND-MATERIAL.

OR LABOR-HOUR CONTRACTS) (DEV)(JUL 1995)

(a)-(f) (no change)

(g) Limited Risk of loss....

(1)-(4) (no change)

(5) [The contractor shall notify the contracting officer [u]pon loss or destruction of, or damage Government property provided under this contract, [with the exception of low value property for which loss, damage, or destruction is reported at contract termination, completion, or when needed for continued contract performance. The Contractor shall take all reasonable action to protect the Government property from further damage, separate the damaged and undamaged Government property, put all the affected Government property in the best possible order. and furnish to the Contracting Officer a statement of-....

(6)-(9) (no change)

(h)-(l) (no change)

(End of Clause)

52.245-8 Liability for the Facilities. (DEV)(JUL 1995)

As prescribed in 45.302-6(b), insert the following clause in solicitations and contracts when a consolidated facilities contract, a facilities acquisition contract, or a facilities use contract is contemplated.

LIABILITY FOR THE FACILITIES (DEV)(JUL 1995)

(a)-(f) (no change)

(g) When there is any loss or destruction of, or damage to, the facilities(with the exception of low value property for which the loss, damage, or destruction is required to be reported at contract termination, completion, or when needed for continued contract performance,]--

(h)-(k) (no change)

(End of clause)