(a) When there is no lapse of time between Government inspection and acceptance of the completed products and shipment from the plantsite, the record shall, as a minimum, consist of summarization of quantities accepted and shipped. When end items are accepted by the Government and stored with the contractor awaiting shipment, the record shall identify quantities stored, location, and disposition action.

(b) On contracts which provide that complete products are to be retained by the contractor for further use under the contract, or other contracts, such items shall be considered "Government-furnished property" upon acceptance and shall be recorded as prescribed in this subpart.

(c) When completed products are returned to a contractor under the terms of a warranty clause, the contractor shall, as a minimum, maintain a record by contract, setting forth a description of the items involved, quantities received and returned to the Government, and such other pertinent data as may be required to permit determination that a proper accounting for all property has been made.

B.311 Financial control accounts and reports-(a) Property accounts. The contractor's property control system shall be such as to provide semiannually the dollar amount of Government facilities and material for which he is accountable in the following classifications:

(i) Land and rights therein;

(ii) Buildings;

(iii) Other structures and facilities;

(iv) Leasehold improvements;

(v) Plant equipment;

(vi) Material; and

(vii) Special test equipment.

(b) Facilities. The contractor's accounts covering items (i) through (v) above will be susceptible to local reconciliation in totals and subtotals as to whether contractoracquired or Government-furnished.

(c) Material and special test equipment. The contractor's property control system shall be such as to provide the dollar value of items (vi) and (vii) above for which he is accountable.

(d) When required by the contract, the contractor will prepare, semiannually, an Analysis of Government-Owned/ContractorHeld Property Other Than Space Hardware Report (NASA Form 1018) in accordance with the instructions contained in Financial Reporting Handbook for Government-Owned/ Contractor-Held Property and Space Hardware (NHB 9500.2).

(e) Submission of reports. Five copies of the NASA Form 1018, or a negative letter report when appropriate, will be submitted by the contractor to the cognizant property administrator so as to be received by: December 26 covering the period July 1-November 30, and by July 26 covering the period December 1-June 30. One additional copy of the report marked "advance copy" will be

forwarded simultaneously to the financial management or fiscal officer of the cognizant NASA installation.

B.312 Financial Accounting Requirements for Multicontract Cost and Material Control Systems. Whenever a multicontract cost and material control system is authorized, the contractor's financial accounts must include all material, including Government-furnished material in the system. Specifically, his accounting system must be adequate to: (1) Provide on a complete and timely basis a clear "audit trial" from costs of materials acquired for each contract to materials used or disposed of on each contract:

(11) Reflect separately for Governmentfurnished and contractor-acquired material in stores (except work-in-process) the inventory balances as affected by receipts, issues, adjustments, and other dispositions;

(iii) Determine unit costs for each identifiable part, component, subassembly, assembly, end item and contract item;

(iv) Calculate amounts for cost reimbursements and progress payments during the life of the contract by applying or allocating such unit costs developed through each stage of work-in-process to contract items for the requirements of each contract; and (v) Assure that when material furnished by one procuring activity is used on a contract of another procuring activity, the furnishing activity receives credit for such material.

B.313 Records of Property of Misdirected Shipments. The contractor's property control system shall be such as to provide the following information regarding each misdirected shipment of Government property received:

(1) Identity of shipment (shipping document, bill of lading, etc.);

(ii) Origin of shipment;

(iii) Content (items in the shipment) per shipping document, if available;

(iv) Location; and

(v) Disposition.

B.314 Records of Property Provided Under Exception Authority. The contractor's property control system shall be such as to provide the following minimum information regarding each item of Government property provided:

(1) Exception identification number; (11) Nomenclature or description of item; (iii) Quantity received;

(iv) Posting reference and date of transaction;

(v) Location;

(vi) Disposition; and

(vii) Unit price.

B.315 Records of Property Sent to Contractors for Processing and Return.

(a) The contractor shall maintain quantitative records of such items to assure control from time of receipt, during processing and return of the items to the NASA installation. Such item records will be established by the contractor in accordance with his prop

B.316 Records of transportation and installation costs of plant equipment for rental purposes. The contractor shall record within the property control system the transportation and installation costs directly borne by the Government for each item of Government-owned plant equipment with an acquisition cost of over $1,000. When required, such recorded costs shall be provided to the contracting officer for use in computing

rental charges pursuant to § 18-7.702-12. (a) Transportation costs.

(1) Transportation costs (other than included in purchase price) shall include costs of shipment of equipment to present location from the last prior location. These costs shall include line haul charges, add-on charges such as switching, diversion, pickup and delivery, overdimensional, State permits, local permits, unloading, drayage, ocean, port handling, and other charges as shown on the applicable Government bill of lading or other transportation document to the receiving contractor location. When transportation costs are included in price of equipment delivered to using location, the property records should be so annotated.

(2) If transportation costs are not included in the price of equipment delivered to the using location, and are not otherwise available, the contractor shall prepare DD Form 1093, Freight Rate Request and Response (or any other form which contains the same data) in triplicate. Item 4 of DD Form 1093 shall be modified to indicate the date or approximate date the shipment was received. The original and one copy of DD Form 1093 shall be forwarded through the property administrator to the transportation officer who will arrange for the estimated freight charges to be placed on the original. The original shall then be returned through the property administrator to the contractor for recording. In submitting freight data requests for a large number of items of plant equipment, special arrangements may be made to use machine listings provided such listings contain all essential information.

(b) Installation costs.

(1) When installation is performed by the contractor, the cost shall be computed in accordance with the contractor's accounting system if acceptable for other contract cost

determination purposes and recorded in the property record.

(2) When installation is subcontracted, the cost paid to the subcontractor shall be recorded in the property record.

(3) When installation costs are included in price of equipment delivered to the using location, the property records should be so annotated.

SUBPART 4-IDENTIFICATION

B.400 Scope of Subpart. This subpart establishes minimum requirements for the identification and marking of Government property in the possession or control of the contractor.

B.401 General. The contractor shall identify, mark, and record all Government property promptly upon receipt, except as may be exempted by this Subpart, and it shall remain so identified so long as it remains in the custody, possession, or control of the contractor. Assigned Government property identification numbers will be recorded on all applicable receiving documents, shipping documents, disposal documents, and any other documents pertaining to the property control system. Such markings shall be removed or obliterated from the property involved when the disposal is by sale, scrap, or through donation.

B.402 Material and Minor Plant Equipment. All Government material and minor plant equipment shall be identified as Government property except in those cases where:

(i) No material or minor plant equipment of the same type at the same location is owned by the contractor, his employees, or other contracting agencies;

(ii) Adequate physical control is maintained over tool-crib items, guard force items, protective clothing, and other items issued for use by individuals in the performance of their work under the contract;

(iii) Property is of bulk type or by its general nature of packing or handling precludes adequate marking, as may be determined by the property administrator; and (iv) Property is commingled, as authorized by B.103.

B.403 Special Tooling and Special Test Equipment. Government-owned special tooling and special test equipment shall be marked in accordance with the procedure established by the contractor and approved by the property administrator, unless it is determined by the contractor in an individual case that marking will damage the special tooling or special test equipment or is otherwise impracticable. The contractor shall advise the property administrator, in writing, of any such determination. Identification shall consist of a serial number (identification number), and an indication of NASA ownership, including the NASA installation responsible for funding and control of the property. If an item is already identified as "U.S. Property," the marking shall not be changed solely to conform to the provisions

of this paragraph. Components of special test equipment, having an acquisition cost of $1,000 or more and incorporated in such a manner that removal and reutilization is feasible and economical, shall be marked in a manner similar to plant equipment as required by B.404(b). General purpose components of special test equipment having an acquisition cost of between $200 and $1,000 may be identified in the same manner, when required for effective control, in accordance with a contractor's approved property control system.

B.404 Plant Equipment.

(a) Industrial Plant Equipment. All Government-owned industrial plant equipment shall be identified by the contractor, who shall affix directly to the equipment, a prenumbered metal, fiber, plastic or other appropriate plate, marking, or decal which shall be provided by the property administrator. Identification shall consist of an indication of NASA ownership, and a NASA identification number except that accessory or auxiliary equipment associated with a specific item of industrial plant equipment and recorded on the official records for that item need not be marked with an identification number unless circumstances necessitate marking to assure that the item of accessory and/or auxiliary equipment will be returned to the Government with the basic item with which associated. Identification numbers assigned and markings affixed shall be permanent and will not be changed as long as the equipment remains under the control of the NASA.

(b) Plant Equipment Other Than Industrial Plant Equipment. Unless already marked in compliance with prior instructions, Government-owned plant equipment, which is not industrial plant equipment or minor plant equipment, shall be marked by the contractor with a Government identification number, except when the size or nature of the equipment makes it impracticable, or the equipment is accessory or auxiliary and attached to or otherwise a part of an item of plant equipment and is required for its normal operation, in which case such item shall be entered and described on the record of equipment to which it is attached or of which it is otherwise a part. Identification shall be effected by affixing a decal, metal, fiber, plastic or other plate directly to the equipment or by using indelible ink, acid or electric etch, steel dies, or other legible, permanent, conspicuous and tamper proof method. Identification by the contractor shall be in accordance with procedures established by the contractor and approved by the property administrator and shall consist of an indication of NASA ownership; however, if the item is already identified as "U.S. Property", the marking shall not be changed solely to conform to the provisions of this paragraph. Accessory or auxiliary equipment associated with a specific item of plant equipment and recorded on the official records for that item need not be marked with an iden

tification number unless circumstances necessitate marking to assure that the item of accessory and/or auxiliary equipment will be returned to the Government with the basic item with which associated. Identification numbers assigned and markings affixed shall be permanent and will not be changed as long as the equipment remains under the control of the NASA, unless a change is necessary to eliminate duplicate numbers in which case the contractor will reidentify the item(s) in accordance with the approved system.

SUBPART 5-PHYSICAL INVENTORIES

B.500 Scope of Subpart. This subpart establishes minimum requirements for the physical inventory of Government property in the possession or control of the contractor. B.501 Periodic Inventories. The contractor shall periodically physically inventory all Government property (except materials issued from stock for performance of manufacturing, research, design, or other services required by the contract) in his possession or control and shall cause his subcontractors to do likewise. The type and frequency of physical inventory and the procedures therefor shall be established by the contractor and approved by the property administrator. In establishing type and frequency of physical inventory consideration should be given to contractor's established practices, type, and usage of the Government property in the possession or control of the contractor, amount of Government property involved and their monetary value, and the reliability of contractor's property control system. Type and frequency of physical inventories normally will not vary between contracts being performed by the contractor; however, it may vary with the types of property being controlled. Inventory, as used here, consists of sighting, tagging or marking, describing, recording and reporting the property concerned and reconciling the property recorded and reported with the property records.

B.502 Inventories Upon Termination or Completion. Immediately upon termination or completion of a contract, the contractor shall perform a physical inventory adequate for disposal purposes, of all Government property applicable to the terminated or completed contract. Further, the contractor shall cause each subcontractor to perform a physical inventory, adequate for disposal purposes, of all Government property in the subcontractor's possession or control which is applicable to the terminated or completed contract. The requirement for physical inventory of Government property at the completion of a contract may be waived by the property administrator when the property applicable to the completed contract is authorized for use on a follow-on contract, provided:

(1) Past experience has established the adequacy of property controls and an acceptable degree of inventory discrepancies; and

(1) A statement is provided by the contractor indicating that transfer of record balances has been made in lieu of preparing formal inventory list and the contractor accepts responsibility and accountability for these balances under the terms of the followon contract.

B.503 Reporting Results of Inventories. The contractor shall, as a minimum, submit to the property administrator: (1) A listing which properly identifies all discrepancies disclosed by a physical inventory, and (ii) a signed statement that physical inventory of all or certain classes of Government property was completed on a given date and that the official property records were found to be in agreement with the physical inventory except for discrepancies reported. The listing and signed statement will be furnished with a minimum of delay after completion of the physical inventory.

B.504 Quantitative and Monetary Control. As directed or required by proper authority, contractor's reports of results of physical inventory action shall be prepared on both a quantitative and monetary basis and segregated by categories of property such as material (except material issued from stock for performance of manufacturing, research, design, or other services required by the contract), special tooling, special test equipment, and plant equipment.

SUBPART 6-CARE, MAINTENANCE AND

UTILIZATION

B.600 Scope of Subpart. This subpart establishes minimum requirements as to care, maintenance, and utilization of Government property in the possession or control of the contractor.

B.601 General. The contractor shall be responsible for the proper care, maintenance, and utilization of Government property in his possession or control from the time of receipt of the property until properly relieved of responsibility in accordance with the contract. The removal of Government property to storage, or its contemplated transfer, does not relieve the contractor of these responsibilities.

B.602 Contractor's Maintenance Program. The contractor's maintenance program (which shall be approved in accordance with B.101) shall be such as to provide for, consistent with sound industrial practice and the terms of the contract: (1) Disclosure of need for and the performance of normal maintenance, (11) disclosure and reporting of need for capital type rehabilitation, and (iii) recording of work accomplished under the program.

(a) Normal Maintenance. Normal maintenance is maintenance generally performed on a regular scheduled basis to prevent the Occurrence of defects and to detect and correct minor defects before they result in serious consequences. An effective normal maintenance program shall consist of, but not be limited to, the following actions:

(1) Inspecting buildings at such periodic intervals as will assure detection of deterioration and the need for repairs;

(11) Inspecting plant equipment at such periodic intervals as will assure detection of maladjustment, wear, or impending break

down;

(iii) Regularly scheduled lubrication of bearings and moving parts in accordance with a lubrication chart or equivalent plan;

(iv) Protection from exposure to deteriorating agents;

(v) Adjustments for wear, repair, or replacement of worn or damaged parts and the elimination of causes of deterioration of associated parts;

(vi) Removal of sludge, chips, and cutting oils from equipment which will not be used for a period of time;

(vii) Taking necessary precautions to prevent deterioration from contamination and corrosion; and

(viii) Proper storage and preservation of accessories and special tools furnished with an item of plant equipment but not regularly used with it.

(b) Capital Type Rehabilitation. The contractor's maintenance program shall be such as to provide for the disclosure and reporting of the need for major repair, replacement, and other rehabilitation work for Government property in the possession or control of the contractor.

(c) Records of Maintenance. The contractor's maintenance program shall provide for records sufficient to disclose the maintenance actions performed and deficiencies discovered as a result of inspections.

B.603 Utilization of Government Property. The contractor's procedures shall be in writing and adequate (1) to assure that Government property will be utilized only for those purposes authorized in the contract, and that any required approvals are obtained, and (11) to provide a basis for determining and allocating rental charges.

B.603-1 Utilization of Industrial Plant Equipment. The procedures applicable to IPE shall, as a minimum:

(1) Establish a minimum level of utilization below which an analysis of need shall be made and retention justified, except for inactive package plants and standby lines. The utilization level may be established for indlvidual items or families of items depending upon circumstances of use;

(ii) Provide for recording authorized and actual use consistent with the utilization levels established under (1) above;

(iii) Require periodic analyses of production needs for IPE and of future utilization based upon known requirements; and

(iv) Have firm provisions for immediately reporting to the contracting officer all IPE items for which retention is not justified.

B.604 Property in Possession of Subcontractors. The contractor shall require any of his subcontractors having Government property in their possession or control to adequately care for and maintain that property

and assure that it is utilized only as authorized by the contract. Procedures necessary to the accomplishment of this responsibility shall be included in the contractor's approved property control system.

Attachment 1 to Appendix B

INSTRUCTIONS FOR THE PREPARATION OF NASA PROPERTY RECORD, DD FORM 1342, FEBRUARY 1968 EDITION FOR INITIAL REPORTING OF INDUSTRIAL PLANT EQUIPMENT (IPE)

This instruction is to be used in the preparation of DD Form 1342 to report newly acquired items of IPE and IPE items not previously reported. Only one initial report of IPE is required. In-use items will be reported initially to the contracting officer (see B.306-1) by use of this form by marking "active" and "Initial" in Block 1. Section II, Block 52 (Condition Code), and Sections III and V of the form are to be completed in accordance with this instruction. Idle items of IPE being initially reported to the contracting officer are to be identified by marking "idle" and "initial" in Block 1. Sections I, II, III, and V of initial idle reports are to be completed in accordance with this instruction and the instruction for reporting idle industrial plant equipment (Attachment 2 to Appendix B). Entries in Section IV are not required for initial reports.

Block 1. Check appropriate boxes to indicate "Active" report and that the report is an "Initial” report.

Block 2. Enter the Julian date of preparation of the form. The first character will be the last digit of the current calendar year, and the next three characters, the Julian date of the year.

Block 3. Enter the Identification Number/ Government Tag Number as recorded on the identification plate affixed to the equipment.

SECTION I-INVENTORY RECORD

Block 4. To obtain item identification data for reporting purposes use:

a. Production Equipment Directories, D1 and D2. The PEC selection for metalworking machinery and welding, heat cutting, and metalizing equipment items being reported will be obtained by comparing and matching a directory entry by manufacturer's designation, nomenclature, and size or capacity data. After selection, enter a 12-digit code consisting of the 10-digit number and a two-digit model code. When an item of IPE cannot be coded from the applicable directory, enter the first four digits of the applicable PEC.

b. IPE Handbooks. The PEC selection will be obtained from Section 3 of the appropriate Defense Supply Agency commodity handbook (see NASA PR 13.312) by the same method as outlined for directories as shown above. The PEC consists of 12 digits. For all other reportable items which cannot be identified to the order listed below:

(1) Section II of the IPE handbook will be screened for applicable entry. The PEC selected will be equal to a specific nomen

clature and size or capacity data matching the item being reported.

(2) If Section II does not contain size or capacity data to cover the specific item, then the PEC representing the nomenclature only will be selected. The PEC for the nomenclature usually can be determined by presence of zeros in the ninth through the 12th position of the PEC, and the absence of a size or capacity in Column 2.

(3) Additional description as required by the applicable descriptive guide shown in Section IV will be included on all reports submitted.

c. When an item of IPE cannot be coded from the sources indicated above, enter the first four digits of the applicable PEC/FSC.

Block 5. Installations which use the FSN as the identifying number will enter the FSN. When the FSN is known, it should be included in all reports.

the

Block 6. Indicate in dollars (omit any symbols, decimal points, commas, etc.) acquisition cost used for property accounting purposes. The acquisition cost will be the price of the basic item plus accessories and auxiliary equipment procured and delivered with the basic unit. If the initial acquisition cost data are not available, an appraised acquisition cost (based on known costs at the time of manufacture of the same or similar equipment), price lists for the period involved, or the best available price from other sources in NASA or DOD, should be used which will achieve conformity of prices for like items of equipment.

Block 7. Enter one of the three type codes (1, 2, or 3) listed in Appendix 1D of Defense Supply Agency Manual DSAM 4215.1.

Block 8. Enter the last two digits of the year the item was manufactured. If the actual year of manufacture cannot be determined, estimate the date, and place an "E" immediately preceding the entry.

Block 9. Enter the appropriate operating power code listed in Appendix 1D of DSAM 4215.1.

Block 10. If applicable enter the appropriate status code listed in Appendix 1D of DSAM 4215.1

Block 11. Enter the two-digit code "32" to indicate NASA-owned equipment. Block 12. Not applicable. Block 13. Not applicable.

Block 14. Enter the name of the manufacturer of the plant equipment being reported. Do not use a distributor's or vendor's name.

a. Enter the name of the manufacturer under which the item is listed in the Directory of Metalworking Machinery, Directory of Welding, Heat Cutting, and Metallizing Equipment, or appropriate IPE Handbook. In some cases manufacturers have merged or become subsidiaries of another company; therefore, in reporting the manufacturer's name, use the appropriate manufacturing division of subsidiary name, and not the parent company.

b. Enter the word "Unknown" when the name of the manufacturer is not known.