48 CFR Part 1845 — Government Property

PART 1845—GOVERNMENT PROPERTY Authority: 51 U.S.C. 20113(a) and 48 CFR chapter 1. Source: 62 FR 36722, July 9, 1997, unless otherwise noted. Subpart 1845.1—General 1845.107 Contract clauses. 1845.107-70 NASA solicitation provisions and contract clauses. (a)(1) The contracting officer shall insert the clause at 1852.245-70, Contractor Requests for Government-furnished Property, in cost reimbursement solicitations and contracts. (2) Use the clause with its Alternate I when the center Supply and Equipment Management Officer (SEMO) consents to permit the contractor to screen Government inventory for available property in lieu of contractor acquisition of new items. (b)(1) The contracting officer shall insert the clause at 1852.245-71, Installation—Accountable Government Property, in solicitations and contracts when Government property is to be made available to a contractor working on a NASA installation, and the Government will maintain accountability for the property. The contracting officer shall list in the clause the applicable property user responsibilities. For purposes of this clause, NASA installations include local off-site buildings owned or leased by NASA. (2) Use of this clause is subject to the SEMO's concurrence that adequate Government property management resources are available for oversight of the property in accordance with all applicable NASA installation property management directives. (3) The contracting officer shall identify, in the contract, the nature, quantity, and acquisition cost of the property and make it available on a nocharge basis. (4) The contracting officer shall use the clause with its Alternate I if the SEMO requests that the contractor be restricted from use of the center central receiving facility for the purposes of receiving contractor-acquired property. (5) For contractors with both onsite and offsite performance requirements, contracting officers shall list Government property provided for offsite use separately in the contract. This Government property is furnished under FAR 52.245-1, Government Property, and remains accountable to the contractor during its use on the contract. This Government property is not subject to the clause at 1852.245-71, Installation—Accountable Government Property. The contracting officer shall address any specific maintenance considerations ( e.g., (c) The contracting officer shall insert the clause at 1852.245-72, Liability for e Government Property Furnished for Repair or Other Services, in fixed-price, time-and-material, and labor-hour solicitations and contracts (except for experimental, developmental, or research work with educational or nonprofit institutions, where no profit is contemplated) for repair, modification, rehabilitation, or other servicing of Government property, if such property is to be furnished to a contractor for that purpose and no other Government property is to be furnished. The contracting officer shall not require additional insurance under the clause unless the circumstances clearly indicate advantages to the Government. (d) The contracting officer shall insert the clause at 1852.245-73, 1852.245-71, (e) The contracting officer shall insert the clause at 1852.245-74, Identification and Marking of Government Equipment, in solicitations and contracts that— (1) Include the clause at FAR 52.245-1; or (2) Require the delivery of supplies. (f) The contracting officer shall insert the clause at 1852.245-75, Property Management Changes, in solicitations and contracts that provide for progress payments or include any of the property clauses prescribed in FAR Part 45. (g) The contracting officer shall insert the clause at 1852.245-76, List of Government Property Furnished Pursuant to FAR 52.245-1, in solicitations and contracts when the contractor is to be accountable under the contract for Government property. (h) The contracting officer shall insert the clause at 1852.245-77, List of Government Property Furnished Pursuant to FAR 52.245-2, in solicitations and contracts containing the clause at 52.245-2, Government Property Installation Operation Services. In addition, the contracting officer shall insert the following language in the blanks in paragraph (e) of the clause at 52.245-2: “The Government property provided under this clause is identified in clause 1852.245-77 of this contract.” (i) The contracting officer shall insert the clause at 1852.245-78, Physical Inventory of Capital Personal Property, in cost reimbursement and fixed-price solicitations and contracts that provide Government property. (j) The contracting officer shall insert the clause at 1852.245-79, Records and Disposition Reports for Government Property with Potential Historic or Significant Real Value, in solicitations and contracts when, after consultation with the center Historic Preservation Officer, it is determined that the items acquired for or produced by the contract are likely to have historic significance or increased value due to their use in support of NASA projects and programs. (k)(1) The contracting officer shall insert the provision at 1852.245-80, Government Property Management Information, in solicitations when it is known, or there is a reasonable chance, that Government property will be provided to the contractor for contract performance. (2) The contracting officer shall use the provision with Alternate 1 when there are sufficient time and resources to allow prospective contractors the opportunity to inspect the property. (l) The contracting officer shall insert the provision at 1852.245-81, List of Available Government Property, in solicitations when Government property will be made available for contract performance. (m) The contracting officer shall insert the clause at 1852.245-82, Occupancy Management Requirements, in solicitations and contracts that require performance on, or in, any NASA Center, Installation, facility or other NASA real property. (n) The contracting officer shall insert the clause at 1852.245-83 Real Property Management Requirements, in solicitations and contracts for acquisition, construction, modification (including when the modification is a consequence of another approved task, e.g., [76 FR 2004, Jan. 12, 2011, as amended at 81 FR 71638, Oct. 18, 2016; 81 FR 91047, Dec. 16, 2016] Subpart 1845.3—Authorizing the Use and Rental of Government Property Source: 76 FR 2005, Jan. 12, 2011, unless otherwise noted. 1845.302 Use of Government property on contracts with foreign governments or international organizations. (a) NASA contracting officers will recover a fair share of the cost of Government property if such property is used in performing services or manufacturing articles for foreign countries or for international organizations. Subpart 1845.4 [Reserved] Subpart 1845.5—Support Government Property Administration Source: 76 FR 2005, Jan. 12, 2011, unless otherwise noted. 1845.501-70 General. (b) When the Industrial Property Officer or Property Administrator determines that the contractor's proposed systems, standards and practices for the management of Government property are inadequate to manage Government property, the Contracting Officer should: (1) Require the contractor to provide a written revision that addresses the determination of the Industrial Property Officer or Property Administrator. 1845.503-70 Delegations of property administration and plant clearance. (e) Under the clause at 1852.245-71, Installation-Accountable Government Property, property is managed by center logistics functions using NASA internal policy and procedural guidance, except— (1) When contractors are provided or are allowed the use of property that is not governed by that procedural guidance, management of that property is governed by the applicable FAR clause. (2) When the contractor is responsible for performance of any segment of a property system under a FAR property clause, then property administration and plant clearance are required. 1845.505-70 Responsibilities of the property administrator. (c) When the property administrator determines that all or a portion of a contractor's property management practices and processes do not afford sufficient protection against loss, damage or destruction of Government property: (1) The property administrator shall increase surveillance to prevent, to the extent possible, any loss, damage, or destruction of Government property; and (2) Advise the contracting officer of any known or reported incidence of loss, damage or destruction identified during any period in which the contracting officer has revoked the Government's acceptance of risk. (d) The property administrator shall review records and the results of contractor actions to identify any and all incidence where the contractor fails to report property no longer required for performance for periods longer than called for in their standards and practices. 1845.506-70 Responsibilities of the plant clearance officer. When plant clearance is not delegated to DOD, NASA plant clearance officers shall be responsible for— (a) Providing the contractor with instructions and advice regarding the proper preparation of inventory schedules; (b) Accepting or rejecting inventory schedules; (c) Conducting or arranging for inventory verification; (d) Initiating prescribed screening and effecting resulting actions; (e) Final plant clearance of contractor inventory; (f) Pre-inventory scrap determinations, as appropriate; (g) Evaluating the adequacy of the contractor's procedures for property disposal and providing feedback to the Property Administrator regarding the contractor's performance in property disposal activities; (h) Determining the method of disposal; (i) Surveillance of any contractor conducted sales; (j) Accounting for all contractor inventory reported by the contractor; (k) Advising and assisting, as appropriate, the contractor, the Supply and Equipment Management Officer (SEMO) and other Federal agencies in all actions relating to the proper and timely disposal of contractor inventory; (l) Approving the method of sale, evaluating bids, and approving sale prices for any contractor-conducted sales; and (m) Recommending the reasonableness of selling expenses related to any contractor-conducted sales. Subpart 1845.6—Reporting, Redistribution, and Disposal of Contractor Inventory 1845.604 Restrictions on purchase or retention of contractor inventory. (1) No contractor may sell contractor inventory to persons known by it to be NASA or DOD personnel who have been engaged in administering or terminating NASA contracts. (2)(i) The contractor's or subcontractor's authority to approve the sale, purchase, or retention of Government property on a contract which is excess to needs after Government reutilization screening at less than cost by a subcontractor, and the subcontractor's authority to sell, purchase, or retain such property at less than cost with the approval of the contractor or next higher-tier subcontractor does not include authority to approve— (A) A sale by a subcontractor to the contractor, the next higher-tier subcontractor, or their affiliates; or (B) A sale, purchase, or retention by a subcontractor affiliated with the contractor or next higher-tier subcontractor. (ii) Each excluded sale, purchase, or retention requires the written approval of the plant clearance officer. 1845.606-70 Contractor's approved scrap procedure. (a) When a contractor has an approved scrap procedure, certain property may be routinely disposed of in accordance with that procedure and not processed under this section. (d) Property in scrap condition, other than that disposed of through the contractor's approved scrap procedure, shall be reported on appropriate inventory schedules for disposition in accordance with the provisions of FAR Part 45 and NFS 1845. [76 FR 2006, Jan. 12, 2011] 1845.607 Scrap. 1845.607-1 General. 1845.607-170 Contractor's approved scrap procedure. (a) When a contractor has an approved scrap procedure, certain property may be routinely disposed of in accordance with that procedure and not processed under this section. (b)-(c) [Reserved] (d) Property in scrap condition, other than that disposed of through the contractor's approved scrap procedure, shall be reported on appropriate inventory schedules for disposition in accordance with the provisions of FAR part 45 and 1845. [62 FR 36722, July 9, 1997, as amended at 69 FR 44610, July 27, 2004] 1845.607-2 Recovering precious metals. (NASA supplements paragraph (b)). (b) Silver, gold, platinum, palladium, rhodium, iridium, osmium, and ruthenium; scrap bearing such metals; and items containing recoverable quantities of them shall be reported to the Defense Reutilization and Marketing Service, DRMS-R, Federal Center, Battle Creek, MI 49017-3092, for instructions regarding disposition. 1845.610 Sale of surplus contractor inventory. 1845.610-4 Contractor inventory in foreign countries. NASA procedures for disposal are in NPR 4300.1, NASA Personal Property Disposal Procedures and Guidelines. [62 FR 36722, July 9, 1997, as amended at 65 FR 58932, Oct. 3, 2000; 69 FR 44610, July 27, 2004] Subpart 1845.71—Forms Preparation 1845.7101 Instructions for preparing NASA Form 1018. NASA must account for and report assets in accordance with 31 U.S.C. 3512 and 31 U.S.C. 3515, Federal Accounting Standards, and Office of Management and Budget (OMB) instructions. Since contractors maintain NASA's official records for its assets in their possession, NASA must obtain periodic data from those records to meet these requirements. Changes in Federal Accounting Standards and OMB reporting requirements may occur from year to year, requiring contractor submission of supplemental information with the NASA Form (NF) 1018. The specific Statements of Federal Financial Accounting Standards (SFFAS) to be used for property records are SFFAS No. 3 “Accounting for Inventory and Related Property”, SFFAS No. 6 “Accounting for Property, Plant and Equipment”, SFFAS No. 10 “Accounting for Internal Use Software”, and SFFAS No. 11 “Amendments to PP&E: Definitions” issued by the Federal Accounting Standards Advisory Board. Classifications of property, related costs to be reported, and other reporting requirements are discussed in this subpart. NF 1018 (see 1853.3) provides critical information for NASA financial statements and property management. Accuracy, completeness, and timeliness of the report are critical to many aspects of NASA's operations. [68 FR 62024, Oct. 31, 2003] 1845.7101-1 Property classification. (a) General. (2)(i) Heritage assets are property, plant and equipment that possess one or more of the following characteristics: (A) Historical or natural significance; (B) Cultural, educational or artistic importance; or (C) Significant architectural characteristics. (ii) 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 which serve both a heritage and government operation function are considered multi-use when the predominant use is in general government operations. Multi-use heritage assets will not be considered heritage assets for NF 1018 supplemental reporting purposes. (3) Obsolete property is property for which there are no current plans for use in its intended purpose (i.e., it no longer provides service to NASA operations). Examples of obsolete property are items in configurations which are no longer required or used by NASA or items held for engineering evaluation purposes only. NASA may have approved the retention of these items for programmatic reasons even though they have no current plans for use. (b) Land. (c) Buildings. (d) Other Structures and Facilities. (e) Leasehold improvements. (f) Construction in progress. (g) Equipment. (1) The amount for all items with a unit acquisition cost of $500,000 or more and a useful life of two years or more; and (2) All other items. (h) Special tooling. (1) The amount for all items with a unit acquisition cost of $500,000 or more and a useful life of two years or more; and (2) All other items. (i) Special test equipment. (1) The amount for all items with a unit acquisition cost of $500,000 or more and a useful life of two years or more; and (2) All other items. (j) Material. (k) Agency-Peculiar Property. (1) The amount for all items with a unit acquisition cost of $500,000 or more and a useful life of two years or more; and (2) All other items. (l) Contract Work-in-Process. [65 FR 54814, Sept. 11, 2000, as amended at 65 FR 82297, Dec. 28, 2000; 66 FR 41806, Aug. 9, 2001; 67 FR 68534, Nov. 12, 2002; 68 FR 62024, Oct. 31, 2003; 80 FR 51958, Aug. 27, 2015] 1845.7101-2 Transfers of property. A transfer is a change in accountability between and among prime contracts, NASA Centers, and other Government agencies (e.g., between contracts of the same NASA Center, contracts of different NASA Centers, a contract of one NASA Center to another, a NASA Center to a contract of another NASA Center, and a contract to another Government agency or its contract). To enable NASA to properly control and account for all transfers, they shall be adequately documented. Adequate documentation includes the appropriate dollar amount of the asset(s) transferred (as prescribed in 1845.7101-3) and the formal, signed NASA or contractor authorization approving the transfer. In addition, procurement, property, and financial organizations at NASA Centers must effect all transfers of accountability, although physical shipment and receipt of property may be made directly by contractors. The procedures described in this section shall be followed to provide an administrative and audit trail, even if property is physically shipped directly from one contractor to another. Property shipped between September 1 and September 30, inclusively, shall be accounted for and reported by the shipping contractor, regardless of the method of shipment, unless written evidence of receipt at destination has been received. Repairables provided under fixed price repair contracts that include the clause at 1852.245-72, Liability for Government Property Furnished for Repair or Other Services, remain accountable to the cognizant NASA Center and are not reportable on NF 1018; repairables provided under a cost-reimbursement contract, however, are accountable to the contractor and reportable on NF 1018. All materials provided to conduct repairs are reportable, regardless of contract type. (a) Approval and notification. (b) Reclassification. (c) Incomplete documentation. e.g., etc. [65 FR 54815, Sept. 11, 2000, as amended at 66 FR 41806, Aug. 9, 2001; 67 FR 68534, Nov. 12, 2002; 68 FR 62025, Oct. 31, 2003; 76 FR 2006, Jan. 12, 2011; 80 FR 51958, Aug. 27, 2015] 1845.7101-3 Unit acquisition cost. (a) The unit acquisition cost shall include all costs incurred to bring the property to a form and location suitable for its intended use. The following is representative of the types of costs that shall be included, when applicable: (1) Amounts paid to vendors or other contractors. (2) Transportation charges to the point of initial use. (3) Handling and storage charges. (4) Labor and other direct or indirect production costs (for assets produced or constructed). (5) Engineering, architectural, and other outside services for designs, plans, specifications, and surveys. (6) Acquisition and preparation costs of buildings and other facilities. (7) An appropriate share of the cost of the equipment and facilities used in construction work. (8) Fixed equipment and related installation costs required for activities in a building or facility. (9) Direct costs of inspection, supervision, and administration of construction contracts and construction work. (10) Legal and recording fees and damage claims. (11) Fair values of facilities and equipment donated to the Government. (b) Acquisition cost shall include, where appropriate, for contractor acquired property, related fees, or a pro rata (c) Acquisition cost shall be developed using actual costs to the greatest extent possible, especially costs directly related to fabrication such as labor and materials. Where estimates are used, there must be a documented methodology based on a historical basis. All acquisition costs shall be properly documented, supported and retained. Supporting documentation shall be made available upon request. (d) The use of weighted average methodologies is acceptable for valuation of Material. (e) Contractors shall report unit acquisition costs using records that are part of the prescribed property or financial control system as provided in this section. Fabrication costs shall be based on approved systems or procedures and include all direct and indirect costs of fabrication. (f) Only modifications that improve an item's capacity or extend its useful life two years or more and that cost $500,000 or more shall be reported on the NF 1018 on the $500,000 & Over line. The costs of any other modifications, excluding routine maintenance, will be reported on the Under $500,000 line. If an item's original unit acquisition cost is less than $500,000, but a single subsequent modification costs $500,000 or more, that modification only will be reported as an item $500,000 or more on subsequent NF 1018s. The original acquisition cost of the item will continue to be included in the under $500,000 total. The quantity for the modified item will remain “1” and be reported with the original acquisition cost of the item. If an item's acquisition cost is reduced by removal of components so that its remaining acquisition cost is under $500,000, it shall be reported as under $500,000. (g) Software acquisition costs include software costs incurred up through acceptance testing and material internal costs incurred to implement the software and otherwise make the software ready for use. Costs incurred after acceptance testing are excluded. License, maintenance, training, and data conversion costs are also excluded. If the software is purchased as part of a package, the costs will need to be segregated in such manner as to ensure that the excluded costs (maintenance, training, etc.) are not reported as part of the software's acquisition cost. Enhancement costs for existing software should be added to the acquisition cost if the enhancement results in significant additional capability beyond that for which the software was originally developed (i.e. a capability that was not included in the original software specifications), the total cost of the enhancement is $1,000,000 or more, and the expected useful life of the enhanced software is 2 years or more. Include the same types of cost as indicated above under new software. Costs incurred solely to repair a design flaw or perform minor upgrades should not be included. (h) The computation of work in process (WIP) shall include all direct and indirect costs of fabrication, including associated systems, subsystems, and spare parts and components furnished or acquired and charged to work in process pending incorporation into a finished item. These types of items make up what is sometimes called production inventory and include programmed extra units to cover replacement during the fabrication process (production spares). Also included are deliverable items on which the contractor or a subcontractor has begun work, and materials issued from inventory. The computation of WIP shall incorporate the other requirements for unit acquisition cost as outlined in paragraphs (a) through (e) of this section. In addition, acquisition cost of property furnished by the Government, which has been incorporated in the property item under construction or in process of fabrication, should be included. Do not include costs for operation or repairing existing completed property items. Once the property is complete, include all the costs outlined above in its acquisition value in the property record. The WIP values are inception to date until such time as the WIP is completed. It does not include future costs. [65 FR 54815, Sept. 11, 2000, as amended at 66 FR 41806, Aug. 9, 2001; 67 FR 68534, Nov. 12, 2002; 68 FR 62025, Oct. 31, 2003; 80 FR 51958, Aug. 27, 2015] 1845.7101-4 Types of deletions from contractor property records. Contractors shall report the types of deletions from contract property records as described in this section. (a) Lost, damaged or destroyed. (b) Transferred in Place. (c) Transferred to NASA Center accountability. (d) Transferred to another NASA Center. (e) Transferred to another Government agency. (f) Purchased at cost/returned for credit. (g) Disposed of through plant clearance process. (h) Other. [65 FR 54816, Sept. 11, 2000, as amended at 66 FR 41806, Aug. 9, 2001; 67 FR 68535, Nov. 12, 2002] 1845.7101-5 Contractor's privileged financial and business information. If a transfer of property between contractors involves disclosing costs of a proprietary nature, the contractor shall furnish unit acquisition costs only on copies of shipping documents sent to the shipping and receiving NASA Centers. [65 FR 54816, Sept. 11, 2000, as amended at 66 FR 41806, Aug. 9, 2001]

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