PIC 99-10

Cancelled by PIC 00-09.

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PIC 99-10

Procurement Information Circular

June 16, 1999

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, 1999.

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) numbers 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 35 percent of NASA's assets, supplemental information will be required from contractors during the NF 1018 reporting process.

PICs 98-12 and 98-15 established NF 1018 reporting requirements for September 30, 1998. The enclosed transmittal letter carries forward those reporting requirements for September 30, 1999, and adds a requirement for contractors to identify any heritage assets in their custody. The following two NASA FAR Supplement (NFS) deviations, authorized in PIC 98-12, are still in effect:

The three $5,000 references in 1845.7101-1(a) are changed to $100,000; and,
The NF 1018 dated July 1998, shall be used instead of the version displayed in 1853.245-70.

NFS changes are in process to incorporate these changes.

GUIDANCE: 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, 1999. The transmittal letter requires insertion of information unique to each contract; its attachments, and a blank copy of the July 1998 NF 1018, 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EFFECTIVE DATE: This PIC is effective as dated and shall remain in effect until canceled or superseded.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: PICs 98-12 and 98-15 are cancelled.

HEADQUARTERS CONTACTS: Jim Dolvin, Code HK, (202) 358-1279, email: jdolvin1@mail.hq.nasa.gov; and Phil Smith, Code BFZ, (202) 358-1022. email: psmith2@hq.nasa.gov

Tom Luedtke
Associate Administrator for Procurement

Enclosures

DISTRIBUTION:
NFSD List

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 1999

Additional supplemental information is required with the NF 1018 for the reporting period ending September 30, 1999. 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, 1999, contractors shall provide supplemental information required by the enclosed schedules. These reporting requirements are the same as those implemented for September 30, 1998, reporting. Additional guidance in a question and answer format can be found at: http://www.hq.nasa.gov/fmm/docs/qa1.htm

Where appropriate, the amounts shown on the NF 1018 for Special Test Equipment, Special Tooling, Agency-Peculiar and Contract Work in Process, shall include related fees, or an estimated prorata 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.

In addition, contractors shall notify NASA of heritage assets in their custody in their September 30, 1999, NF 1018. SFFAS Number 8, Supplementary Stewardship Reporting, requires Federal agencies to classify and report their heritage assets as Required Supplementary Stewardship Information (RSSI) with their annual financial statements. SFFAS Number 8 can be found at: http://www.financenet.gov/financenet/fed/fasab/concepts.htm

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. They are generally expected to be preserved indefinitely. No asset amounts are shown for heritage assets on NASA's balance sheet; physical units are summarized in the RSSI. 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 shall review NASA property, plant and equipment in their custody to identify any potential heritage assets other than multi-use assets. If heritage assets are noted, their values should be reported in the balances shown on the NF1018 and they shall be individually described in block 17, 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, 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.

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

Depreciation Data for NF 1018 Reporting
Government-Owned Contractor-Held Property

NF 1018 Line Item Number/Property Classification Account	a. Useful Life (years)	b. Property Older Than Useful Life (in dollars)	c. Property Younger Than Useful Life (in dollars)
5. Buildings	40
6. Other Structures & Facilities	15
7. Leasehold Improvements	15
9. Equipment:
5 Year	5
7 Year	7
10 Year	10
15 Year	15
20 Year	20
10. Special Test Equipment	7
11. Special Tooling	7
12. Agency-Peculiar	15
Total

Instructions:

Completion of this chart will provide NASA with data it needs to calculate depreciation for its property, plant and equipment in the custody of contractors to comply with requirements of Statement of Federal Financial Accounting Standard Number 6, Accounting for Property, Plant and Equipment. The following instructions shall apply:

1. Report amounts for assets with acquisition values equal to or greater than $100,000 for the Property Classification Accounts shown above.

2. 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, Material and Contract Work in Process are not depreciated, so no depreciation data is required for those NF 1018 Property Classification Accounts.)

3. For Equipment, NF 1018 line item number 9:

a) Determine what Equipment included in the Balance End of Period, NF 1018 column d.(1), falls into each of the FSC groups shown on the enclosed Federal Supply Classification (FSC) Table.

b) Group the Equipment by Useful Life categories shown on the above chart.

c) Determine what amount of the Equipment in each Useful Life category is older than its FSC Table useful life and what amount is younger than its useful life and enter these amounts in columns b. and c., above, as appropriate, for each of the five Equipment useful life categories (5, 7, 10, 15 and 20 years).

4. Column b. will include the dollar value of all property older than the useful life indicated in column a. This amount represents property that is fully depreciated.

5. Column c. will include the dollar value of all property younger than the useful life indicated in column a. This amount represents property that is not fully depreciated.

6. The total of columns b. and c. for each Property Classification Account shall equal the total value shown for that Property Classification Account in column d.(1) of the NF 1018.

7. Enter totals for columns b. and c.

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

Assets Not In Use (in Plant Clearance Process)
Government-Owned Contractor-Held Property

NF 1018 Line Item Number/Property Classification Account	a. Amount in Plant Clearance Process
4. Land
5. Buildings
6. Other Structures & Facilities
7. Leasehold Improvements
9. Equipment
10. Special Test Equipment
11. Special Tooling
12. Agency-Peculiar
Total

Instructions:

Completion of this chart will provide NASA with the data it needs to properly reflect PP&E not in use, but in the custody of contractors, in its financial statements, to comply with requirements of Statement of Federal Financial Accounting Standard Number 6, Accounting for Property, Plant and Equipment. The following instructions shall apply:

1. Include the value of PP&E in the plant clearance process, i.e., after agency screening, in column c., Deletions, and exclude that value from column d.(1), Balance End of Period, on the NF 1018.

2. Enter these amounts as "Assets in Plant Clearance Process" in item 21, line i. of the NF 1018 for the appropriate Property Classification Accounts.

3. Enter these amounts in column a., above, for each of the NF 1018 Property Classification Accounts on the chart.

4. Total column a.

Attachment 4