SUBPART 6-CARE, MAINTENANCE AND

UTILIZATION

C.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.

C.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.

C.602 Contractor's Maintenance Program. The contractor's maintenance program (which shall be approved in accordance with C.101) shall be such as to provide for, consistent with 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 regularly 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 for 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 type 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.

C.603 Utilization of Government Property. The contractor's procedures shall be in writing and adequate to assure that Government property will be utilized only for those purposes authorized in the contract.

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

(1) Methods which provide for a review of all IPE needs and usage;

(11) Provisions for reporting immediately to the contracting officer IPE items for which retention is not justified; and

(111) Rejustification of the need of IPE, upon request of the contracting officer.

C.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 C

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 C.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 C). 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 nomenclature 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.

Block 6. Indicate in dollars (omit any symbols, decimal points, commas, etc.) the 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.

Block 15. This is a five-digit numerical code identifying the manufacturer of IPE. The manufacturer's code will be obtained from Production Equipment Directories D1 and D2 and the DSAH series Industrial Plant Equipment Handbooks; however, if not available in these publications then refer to cataloging Handbook H4-1.

Block 16. a. Enter the manufacturer's model, style, or catalog number for the equipment being reported. Always use the model number, if available. Style number would be next in preference. When the manufacturer does not assign a model, style, or catalog number, the word "None" will be inserted.

b. When the model number is obtained from IPE directories or handbooks, the model number must agree with the manufacturer's description, size, capacities of the equipment and Plant Equipment Code. All model numbers must be verified by a physical inspection of the equipment.

c. When unable to locate a model number, refer to manufacturer's brochure or purchase order. If the model number is obtained from other than the equipment, indicate the source in "Remarks", Block 54.

Block 17. Enter the serial number taken from the plant equipment. If a serial number is not assigned to the item, enter "None".

Blocks 18, 19, 20, and 21. The length, width, and height including skid will be recorded to the next foot. Dimensions on boxed items should be to the next foot only.

a. Add 24" to the length, 4" to the width, and 10" to the height of the item for determining skidded dimensions. EXAMPLE: Actual machine measurements are 12′3′′ long, 6′10′′ wide, and 8'4" high. By using the above formula, reporting measurements would be 15' long, 8' wide, and 10' high.

b. When disassembly for movement or storage results in more than one skid, indicate the total size and weight. Length, width, and height of each individual skid assembly will be so indicated in "Remarks", Block 54.

c. Weight will be recorded to the nearest 100 pounds, except for items weighing less than 500 pounds on which the weight will be indicated to the nearest 10 pounds. The weight will not be limited to that of the basic machine, but will include the weight of accessories and auxiliary equipment. The combined weight does not include skid weight. The carrier's inbound freight bill on machine tool manufacturer's specifications are normally an accurate source document for weight information.

Block 22. Enter the Certificate of Nonavailability number and date assigned by DIPEC in Section V of DD Form 1419. This block must be completed for all newly procured items.

Block 23. Not applicable.

Block 24. This entry is not required in inventory reports.

Block 25. Enter the complete contract number under which the contractor is accountable for the item. This normally will be a facility contract number. Otherwise, the production, procurement service lease, or lay away contract number, as applicable, will be entered.

Block 26. Enter the complete description of the item, including the major group, class, subclass, type, subtype, size group, specific size, etc., as selected from the appropriate directory or handbook.

a. Production Equipment Directories D1 and D2. Beginning with the noun, insert the description of the item verbatim from the applicable directory for the PEC selected. Next, insert all sizes, capacities, and adjustments thereof, used by the manufacturer to describe the item if not included in the directory entry.

b. IPE Handbooks. Enter description from Sections I, II, or III of the handbook. Additional description will be shown as required by the applicable descriptive guide listed in Section IV of the handbook. No limit is established on the number of characters in this entry. Continue in "Remarks," Block 54 if required.

c. General.

(1) Physical inspection by qualified personnel will be performed on all IPE reported to obtain or verify descriptive and capacity data.

(2) If the term being reported is a single purpose item, a complete description of the product produced will be entered with identifying drawing or part numbers, if available.

(3) If the item being reported is designated as general purpose with special features, the special features and their relation to the original design will be fully explained.

Block 27. This entry is to be completed for all IPE that includes electric motors. Enter the electrical characteristics and quantity of all motors. List the main drive motor(s) first, followed by all other motors in order of importance. If more than four lines are required, continue the listing under "Remarks," Block 54.

Block 28. Enter the NASA installation, or company name, street address, city, State and ZIP code of the actual location of the plant equipment in this block. If the actual location is a subcontractor's plant, enter the name of the prime contractor above the subcontractor's name. Do not use the office address if different from the plant address. If no street address exists, insert "No Street Address."

Block 28a. Not applicable.
Block 29. Not applicable.

SECTION II-INSPECTION BOARD

Block 52. Enter the appropriate condition code listed in Appendix 1D of DSAM 4215.1. SECTION III-REMARKS

Block 54. The space in this block or on the reverse side of the form may be used for continuation or explanation of above entries. List all accessories and auxiliary equipment identified to the item (see Item 6, Acquisition Cost).

SECTION V-VALIDATION RECORD

Block 57. Enter the signature of the individual(s) authorized to validate the report (e.g., Property Administrator).

Attachment 2 to Appendix C

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

This instruction is to be used in the preparation of DD Form 1342 to report idle IPE. The form will be submitted to the contracting officer in accordance with the instructions contained in C.306.1 within 10 days after the IPE becomes idle. If any data changes after submission of an initial idle report, a complete new report will be prepared and submitted.

1. Idle reports are identified by checking "idle" in Block 1 of the form. If the idle IPE is being reported to the contracting officer for the first time, the report is checked "idle" and "initial" in Block 1. Idle change reports, which report data changes after submission of the initial idle report, are identified by checking "idle" and "change" in Block 1 of a complete new report.

2. Entries in Sections I, III and V are to be completed in accordance with the instructions for initial reporting of IPE (Attachment 1 to Appendix C) except as specified in this instruction or as necessary to up-date an initial report. (E.g., remodeling cost will be added to the initial acquisition to obtain a new cost.) Initial acquisition cost will be reduced, if necessary, in accordance with the following:

All accessories and auxiliary equipment attached or identified to an item of IPE will be entered and described on the DD Form 1342. In the event accessories and auxiliary equipment are reassigned to another item of IPE, the respective DD Forms 1342 will be updated to reflect the transfers and

to record the changes to acquisition costs of each item of IPE. Precision fitted accessories and auxiliary equipment will not be reassigned to another item of equipment.

NOTE: Costs to rehabilitate, repair or rebuild IPE will not be added to the acquisition cost.

SECTION I-INVENTORY RECORDS

Block 24. Enter the ARD by Julian date. For items other than contractor inventory leave this box blank.

Block 28. Enter the name, street address, city, State and zip code of the actual location of the equipment. Also include the name and telephone number of the individual at the location who may be contacted for additional technical data.

NOTE: If the item must be moved to another location for disposal purposes, enter the new location data in Block 54.

SECTION II-INSPECTION RECORD

Block 30. Self explanatory.

Block 31. If yes, enter the date of the last rebuild/overhaul.

Block 32. If "yes" explain in "Remarks". Give explanation of the effect modification has on general utility of item such as limiting its use, and whether it could be converted economically to its original configuration.

Block 33. Self explanatory. Explain "No" answers in "Remarks".

Block 34. If the answer is "No", describe the maintenance and amount of expenditure in "Remarks".

Blocks 35 through 40. Self explanatory. Blocks 41. If "No", briefly describe defects in "Remarks".

Block 42. If "Yes", give estimate of the cost. Block 43. If "No", explain in "Remarks". Blocks 44 through 47. Self explanatory. If answer to question is "No", briefly describe each defect in "Remarks".

Block 48. Enter the number of hours item was used by current possessor.

Block 49. Enter a brief description of last

use.

Examples:

Welder "Y" ring.

Oscilloscope-Booster control calibration.
Lathe-Finish low carbon steel.
Grinder-High speed steel shafts.
Magnaflux-Test landing struts.

Block 50. Enter estimated cost for preparation and loading for movement by common carrier.

Block 51. If the item is being reported in advance of the date of availability for redistribution, indicate date the item will become available.

Block 52. Enter the appropriate condition code listed in Appendix 1D of DSAM 4215.1. Block 53. Enter the appropriate operating test code listed in Appendix 1D of DSAM 4215.1. NASA installations which have performed an analytical inspection of IPE being reported idle should attach a copy of the completed analytical test pattern to the idle report.

SECTION III-REMARKS

Block 54. Use "Remarks" for continuation or explanation of previous entries, and

a. List all accessories and auxiliary equipment identified to the item and available for shipment.

b. Explain the type and degree of chemical or radioactive contamination of components. If decontamination is possible or not, explain fully.

c. List aluminum skid components required to ship the item reported.

SECTION IV-DISPOSITION RECORD

Block 55. Enter name and address of NASA installation, Governmental agency and activity or contractor to which item is transferred.

Block 56. Enter an "X" in the appropriate box to indicate type of disposition.

Block 56a. Enter date of disposition or delivery and amount of proceeds realized if disposition was by sale.

SECTION V-VALIDATION RECORD

Block 57. Enter the signature of the individual(s) authorized to validate the report (e.g., Property Administrator).

Appendix D-[Reserved]

Appendix E-Contract Financing SOURCE: The provisions of Appendix E appear at 36 FR 15646, Aug. 17, 1971, as amended at 37 FR 14979, July 26, 1972.

SUBPART 1-[RESERVED]

SUBPART 2-BASIC POLICIES

E.200 Scope of Subpart. This subpart sets forth basic policies applicable to advance payments and progress payments. Policies and procedures more particularly pertaining to the specific methods of contract financing are contained in the parts of these regulations relating to each method of financing. Paragraph E-201 and E-202 also deal with other payments to contractors.

E.201 Acceleration of Payments. Payments must be made promptly on all contracts when due. It is of continuing importance that there be acceleration of all proper payments earned by contractors, including progress payments. Undue delays by the Government in determining amounts due to contractors or in making timely payment of amounts earned by contractors would impose financing burdens on contractors and may amount to extensions of credit by contractors to the Government. Contracting officers should give favorable consideration to reasonable requests for billing more frequently than monthly.

E.202 Timely Action. In connection with requests for provision of progress payments or advance payments, there must be timely action, no unwarranted delay, and no hesitation to make proper contract financing provisions. Likewise, with regard to other payments to contractors, not constituting