of the appeal in order to permit reconsideration by the contracting officer: Provided, however, That if the Board is advised thereafter by either party that the controversy has not been disposed of by agreement, the case shall be restored to the Board's calendar without loss of position. Decisions 28. Decisions of the Board will be made in writing and authenticated copies thereof will be forwarded simultaneously to both parties. The rules of the Board and all final orders and decisions (except those required for good cause to be held confidential and not cited as precedents) shall be open for public inspection at the offices of the Board in Washington, D.C. In accordance with paragraph 3 of the Charter, decisions of the Board will be made upon the record, as described in Rule 13. Motions for Reconsideration 29. A motion for reconsideration, if filed by either party, shall set forth specifically the ground or grounds relied upon to sustain the motion, and shall be filed within 30 days from the date of the receipt of a copy of the decision of the Board by the party filing the motion. Dismissal Without Prejudice 30. In certain cases, appeals docketed before the Board are required to be placed in a suspense status and the Board is unable to proceed with disposition thereof for reasons not within the control of the Board. In any such case where the suspension has continued, or it appears that it will continue, for an inordinate length of time, the Board may in its discretion dismiss such appeals from its docket without prejudice to their restoration when the cause of suspension has been removed. Effective Date and Applicability 31. These revised rules shall take effect on the first day of the month following the month in which they are approved by the Assistant Secretary of Defense (Installations and Logistics) and the Assistant Secretaries of the Military Departments responsible for procurement. Except as otherwise directed by the Board, these rules shall not apply to appeals which have been docketed prior to their effective date. Approved this 15th day of July 1963. The Assistant Secretary of the Army The Assistant Secretary of the Navy The Assistant Secretary of the Air Force (Materiel). [27 F.R. 6139, June 27, 1962 and 29 F.R. 2842, Feb. 29, 1964] § 30.2 Appendix B-Manual for control of Government property in possession of contractors. PART I-INTRODUCTION 101. Scope of Manual. This Manual seta forth basic requirements to be observed by the Departments of the Army, Navy, and Air Force, for establishing and maintaining control over Government property furnished to or acquired by contractors pursuant to the terms of their contracts. 102. Applicability of Manual. This Manual applies to all types of contracts, leases and bailments pursuant to which Govern. ment property is furnished to or acquired by a contractor. 103. Definitions. As used in this Manual, the following terms have the meanings shown: 103.1 Contractor administrator. Contractor administrator means the individual duly designated by appropriate authority in the Military Departments to administer the contract. In the case of the Army, Air Force, and the Defense Supply Agency, usually this is a contracting officer; and in the Navy, usually this is the authorized representative of the contracting officer hav. ing administrative cognizance over the contract. 7 103.2 "Property administrator" means the 18 Government representative responsible to the contract administrator for: (1) Reviewing and approving the contractor's property control procedures; (11) Examining the records maintained by the contractor of Government property; (iii) Making usage analysis of Govern ment property; and (iv) The maintenance of such Government property records as are required by this Manual. 103.3 "Government property" means all property owned by or leased to the Govern ment, or acquired by the Government under the terms of a contract; except that property to which the Government has acquired a lien or title solely as a result of partial, advance or progress payments shall not for the purpose of this Manual be classified as Gov-M ernment property. With this exception, Gov. ernment property includes both Govern ment-furnished property and contractacquired property, as defined below: (1) Government-furnished "property" is property in the possession of or acquired dlrectly by the Government and subsequently delivered or otherwise made available to the contractor; and (11) "Contractor-acquired property" is property procured or otherwise provided by the contractor for the performance of s contract, pursuant to the terms of which title is vested in the Government. The term "provide," as used in the context of such phrases as "Government property provided to the contractor" and "Govern. ment-provided property," is intended to in clude both Government-furnished property and contractor-acquired property. 103.4 "Industrial facility" means property, other than material and special tooling, of use for the performance of a contract or subcontract, including real property and rights therein, buildings, structures, improvements, and plant equipment. 103.5 "Industrial property," as distinguished from military property, means any contractor-acquired or Government-furnished property, including materials, special tooling, and industrial facilities furnished or acquired in the performance of a contract or subcontract. 103.6 "Real property," for purposes of accounting classification means (1) land and rights therein, (11) utility distribution systems, and (iii) buildings, structures, and improvements thereto, excluding plant equipment. 103.7 "Utility distribution system" means system (including distribution and transmission lines, substations, and installed equipment forming an integral part of the system), by which gas, water, steam, elecricity, sewerage, or other utility services are ransmitted between (1) the outside of the uilding or structure in which the services are ised, and (11) the point of origin or disposal, or the connection with some other system. For the purpose of this Manual it does not nclude communication services. 103.8 "Plant equipment" means personal roperty of a capital nature (consisting of machinery, equipment, furniture, vehicles, machine tools, and accessory and auxiliary tems, but excluding special tooling used or apable of use in the manufacture of suplies or in the performance of services or for ny administrative or general plant purpose. 103.9 "Minor plant equipment" means an tem of plant equipment having a unit value f less than $200 and other plant equipment, egardless of cost, when so designated by he Government. 103.10 "Production equipment" means hose items of plant equipment located ithin a manufacturing, processing, assembly r service establishment and used for itting, abrading, grinding, shaping, formig, joining, measuring, testing, heating or eating production materials or work in rocess. 103.11 "Machine tools" mean those items production equipment which are powerriven, non-portable machines used for cutng, abrading, grinding, shaping or formig metal. 103.12 "Accessory item" means an item hich facilitates or enhances the operation plant equipment but which is not essenal for its operation, such as remote control vices. 103.13 "Auxiliary item" means an item Ithout which the basic unit of plant equipent cannot operate, such as motors for imps and machine tools. 103.14 Special tooling means all jigs, dies, tures, molds, patterns, special taps, spe cial gauges, special test equipment, other special equipment and manufacturing aids, and replacements thereof, acquired or manufactured by the contractor for use in the performance of a contract, which are of such a specialized nature that, without substantial modification or alteration, their use is limited to the production of such supplies or parts thereof, or the performance of such services, as are peculiar to the needs of the Government. The term does not include: (1) Items of tooling or equipment acquired by the contractor prior to the contract, or replacements thereof, whether or not altered or adapted for use in the performance of the contract, (11) consumable small tools, or (111) general or special machine tools, or similar capital items. 103.15 "Material" means property which may be incorporated into or attached to an end item to be delivered under a contract or which may be consumed or expended in the performance of a contract. It includes, but is not limited to, raw and processed material, parts, components, assemblies, and small tools and supplies which may be consumed in normal use in the performance of the contract. 103.16 "Salvage" means property recoverable for further use or which, because of its worn, damaged, deteriorated, or incomplete condition, or specialized nature, has no reasonable prospect of sale or use as serviceable property without major repairs or alterations but which has some value in excess of its scrap value. 103.17 "Scrap" means property that has no reasonable prospect of being sold except for the recovery value of its basic material content. 103.18 "Property account" means the offcial records of the Government property provided to a contractor by a Department, which are established and maintained under the provisions of this Manual. Separate property accounts will be maintained either on an individual contract basis or contractor basis. 103.19 "Stock record" means a perpetual inventory form of record which shows, by nomenclature, the quantities received and issued, and the balances on hand. PART II-GENERAL PROVISIONS 200. Scope of part. This part sets forth (1) the duties and responsibilities of Government representatives and contractors charged with the control of Government Property, (11) the sources from which Government Property may be received or acquired, and (iii) the manner in which Government Property will be controlled, both physically and administratively. 201. Duties and responsibilities of the Contract Administrator with respect to the control of Government Property. (a) The function of the Contract Administrator with respect to the control of Government Property is to insure that the Contractor complies with the provisions of the contract and this manual pertaining to Government Property and that the Government's interests therein are fully protected at all times. He shall require the Contractor to (1) exercise reasonable care and proper usage of all Government Property, (11) establish and maintain adequate records therefor and (iii) maintain controls that will assure the recording of all debits and credits to the property record as hereinafter defined. (b) It is incumbent upon the Contract Administrator to familiarize himself with the provisions of this manual and the contract involved. (c) He shall require the Contractor to correct all deficiencies in complying with the provisions of the contract and this manual pertaining to Government Property. (d) He shall take proper action with respect to recommendations of the Property Administrator relating to usage or control of Government Property. (e) He shall make appropriate written Andings with respect to the Contractor's liability for Government Property lost, damaged, destroyed, or unreasonably consumed in production, as may be required by this manual. 202. Designation of property administra tor. (a) A property administrator shall be designated for each Government contract involving Government property. In appro priate cases the contract administrator may be assigned the additional duty of property administrator. An assistant property administrator may be appointed for specific contracts. The property administrator will not be required to post a bond by virtue of the duty as property administrator. (b) It is the policy of the Department of Defense that a single property administrator shall be designated for all Department of Defense contracts performed at one location by a contractor. Within each Military Department, responsibility for the direction, administration, and review of the property administration interchange program shall be assigned to a single office at the Department level. This office, designated to direct and administer the program, shall have the following responsibilities: (1) Implementation of pertinent Department of Defense directives, instructions, and regulations. (2) Review of field contract administration activities for compliance with Department of Defense and Departmental directives pertinent to the property administration interchange program. (3) Resolution of intra-departmental interchange problems. (4) Resolution of inter-departmental interchange problems. (c) Property administration interchange agreements shall be negotiated only by those offices administering current contracts or orders with the contractors. Property administration interchange agreements shall be effected at the field level between representa tives of the procuring activities having con tract administration responsibility. In formulating such agreements, the following fac tors, among others, shall be considered: (1) Comparative value and types of Go ernment property in the possession of the contractor and the Government property ye to be provided under Government contracta (2) Existence of a resident property administrator or accessibility of an itinerant property administrator. (3) Other contract administration func tions which may have a bearing on property administration such as quality control, industrial mobilization planning and audit cognizance. (d) Based on the above factors, when two or more offices are equally concerned with property administration at a contractor's lo cation, that office which has contracts ar orders that indicate the greatest continuous duration of future interest in Government property shall be given primary consideration for property administration cognizance, When all contracts or orders of the Depart ment designated to perform property administration have been completed at a contractor's location, that Department shal cease to have cognizance at that location un less all military contracts providing for Government property are scheduled to expire within a succeeding three-month period When all contracts or orders of the Depart ment designated to perform property administration have been completed at a contractor's location where other Department continue to perform contracts or orden which are not scheduled to expire within a succeeding three-month period, property administration cognizance shall be determined by negotiation between those Departments which continue to perform contracts or orders providing for Government property with the suppliers. When a Department that prevously had no contracts at a contractor's loca tion at the time the existing property administration interchange agreement was made acquires a contract providing for Government property of greater continuous duration of future interest than those involved in the existing agreement, the cognizance agreement shall be reviewed and either confirmed or revised by a new agreement. (e) When the Departments are unable to reach property administration interchange agreements, those unresolved property administration assignments chall be referred to the Assistant Secretary of Defense (Supply and Logistics) for resolution. (f) Property administration functions required by this subchapter will be performed by the designated property administrator who will generally follow his current oper ating procedures in performing property administration. Each Department will provide the designated property administrator with manuals, instructions, and directives pertaining to reports and documentation re quired by contractual provisions. Docu ments and records required by this section or property administration of current conracts, subcontracts, and purchase orders inHolving Government property will be provided to the designated property administrator rior to the effective date of an agreement. Copies of such contracts, subcontracts, and urchase orders and amendments thereto or xtracts of property provisions thereof will Accompany the transmittal. The name of he individual designated as property adninistrator for such contracts will be furished to the procuring activity performing Contract administration. New contracts, ubcontracts, purchase orders and amendnents thereto or extracts of property provisions thereof where Government property s involved will be transmitted to the desigated property administrator. Contracts containing the special tooling clause (§ 13.104 of this chapter) will likewise be transnitted to the designated property adminisrator for necessary surveillance. (g) The designated property administrator nay correspond directly with the contractor and appropriate Department of Defense personnel on matters pertaining to Government property. The contract administrator will keep the property administrator informed is to all communications, correspondence, and actions affecting property matters under the assigned contract. (h) Property administration interchange agreements shall be in the general format shown below. Where required, appendices shall be added thereto. 1. Purpose: This is a local interchange agreement providing for property administration at the designated contractor's location by (Department-procurement office) in accordance with ASPR B-202. 2. Effective date: This agreement becomes effective on - 3. Contractor's location: (Identify specific location covered by this agreement) (Signatures of authorized representatives of Departments concerned) 203. Duties and responsibilities of Property Administrators. (a) The property administrator shall familiarize himself with the provisions of this Manual and the contract provisions pertainEng to Government property. (b) He shall, as the authorized representative of the contract administrator or administrators, insure compliance with the contract requirements relative to Governnent property and insure fulfillment of all obligations imposed by this Manual. Except is may be provided pursuant to B-304.1(e), e shall at the inception of each contract review and approve in writing the conractor's property control system, except that where the contractor has a number of con-racts, the property administrator may per form such review and give such approval not less often than six months. (c) He shall be responsible for property management data required by contractual provisions and, when acting as property administrator under a property administration interchange agreement, shall also provide the procuring activities concerned with such management data and with information, documents, records, and assistance required by the latter for conformance with the provisions of this Appendix B and/or Departmental procedures, including, but not limited to, those for the following purposes: (1) Public vouchers. (2) Fulfilling managerial and financial requirements for property report cards. (3) Marking and identification of property under Departmental procedures. (4) Disposition of excess. (5) Approval of the contractor's property control procedures and records. (6) Relief from responsibility for property loss, damage, unauthorized use, or unreasonable consumption. (7) Final property clearance. (d) He shall examine the documents, including but not limited to consumption or usage reports, adjustment reports, reports of spoilage or shrinkage, sales, shipments, transfers, etc., recorded by the contractor in the property account, to the extent necessary to establish the correctness and completeness of such records. (e) It shall be his responsibility to determine whether the contractor is using Government property for the purposes authorized by the contract, and whether the contractor is exercising the degree of care in the handling of Government property prescribed in the contract. (f) He shall make usage analyses to determine the reasonableness of the consumption and expenditure of Government property. Control records shall be utilized in the performance of the usage survey and, to the extent necessary, selective physical inspections of Government property shall be made in the appropriate states of production. (g) He shall periodically examine all property records to determine whether such records reflect the status of Government property and indicate compliance with the provisions of the contract and applicable directives. He shall report promptly in writing to the contract administrator any noncompliance by the contractor with the contract provisions and applicable directives. (h) He shall advise the contract administrator on all property matters. 204. Duties and responsibilities of the Contractor The Contractor shall be directly responsibile for and accountable for all Government Property in accordance with the provisions of the contract. The Contractor shall maintain and make available such records as are required by Part III of this manual and must account for all Government Property until relieved of responsibility therefor in accordance with the pro cedures as set forth in Part IV of this manual. Liability for loss, damage, or excessive use of property in a given instance will necessarily depend upon all the circumstances surrounding the particular case and must be considered and determined in accordance with the provisions of the contract. The Contractor shall furnish all necessary data substantiating any request for discharge from responsibility. 205. Sources from which Government property may be furnished or acquired. 205.1 Military installations or other Contractors' plants. Government Property may be shipped to a Contractor from military installations or plants of department contractors. 205.2 Direct purchase by the Contractor. Direct purchases shall be subject to a determination by the Contract Administrator that the items are allocable to the contract involved and are reasonably necessary therefor. For purposes of property control within the scope of this manual, it shall be considered that property purchased by a Contractor, for which reimbursement is to be requested, becomes Government Property upon its receipt by the Contractor. provision shall not be deemed to alter or modify contractual provisions relating to passage of title. This 205.3 Withdrawal from Contractor-owned stores. For purposes of property control, within the scope of this manual, property withdrawn from Contractor-owned stores, for direct charge to the contract, shall be considered Government Property at the time of approval of the claim for reimbursement, or at the time of issuance for use of such property for the performance of the contract, whichever is earlier. 205.4 Contract provisions, termination, contract changes. Pursuant to specific contractual provisions, or as a result of termination of a contract, or change orders issued under a contract, the Government may acquire title to property. 205.5 Advance, progress, or partial payments. Pursuant to the terms of a contract the Government may acquire title to property upon the making of advance, progress, or partial payments to the Contractor. Property to which the Government has acquired a lien or title solely as a result of partial, advance, or progress payments shall not be subject to the provisions of this manual. ad 206. Segregation or commingling of Government property and contractor's property. Government property will be segregated and kept physically separate from contractorowned property. However, when vantageous to the Government and consistent with the contractor's authority to use such property, the property may be commingled: (1) When the Government property is special tooling or plant equipment which is clearly identified and recorded as Government property, (11) When approved by the property administrator in connection with research and development contracts, (iii) When material is multicontract cost and system approved in B-304.1(e), or included in a material control accordance with (iv) When otherwise approved by the property administrator. 207. Physical inventories. 207.1 Before termination or completion! It shall be the responsibility of the property administrator to review and approve the type and frequency of physical inventories to be taken. In this respect, he may accept and approve in writing the contractor's estab lished procedures if he determines that they adequately protect the interests of the Gov ernment and are in conformity with appli cable regulations. 207.2 Upon termination or completion Upon termination or completion of a con tract, a physical inventory adequate for dis posal purposes shall be required of all Gov ernment property applicable to the contrac in the custody, control or possession of the contractor. 207.3 Joint physical inventories or sele tive examinations under paragraphs 207 and 207.2 of this section. (a) The propert administrator may, at his discretion, requi physical inventories to be taken jointly his designated representatives and the cc tractor. (b) In lieu of a joint physical inventor selective examinations of an inventory the contractor may be made when the pro erty administrator determines that such pr cedure is more economical and will ade quately protect the interest of the Gover ment. When selective examinations a made, they must embrace a representati number of items in the account and m adequately cover, by class and price rang all Government property involved. 207.4 Quantitative and monetary cont As directed or required by proper authorit the contractor's physical inventories shall prepared on both a quantitative and met tary basis and classified by categories such material, special tooling, plant equipme etc. 207.5 Discrepancies. Any discrepand disclosed as a result of inventorying will adjusted in accordance with the provisions Part III and Part IV of this § 30.2. PART III-RECORDS TO BE MAINTAINED 301. General. (a) In order satisfacto to perform work under a Government c tract, a contractor must maintain some fa of control records for all Government pr erty, whether furnished to or acquired by contractor for the account of the Gove ment. It is the Government's policy designate and use such records as the of contract records, and not to maintain duy cate property control records, other t those required by paragraph 303, and ot With than industrial facility records. |