(3) Item received is properly classified (e.g., special tooling)

I
I

(4) Item is properly identified and marked during the receiving process_____ (5) Returnable and reusable containers are properly controlled and accounted for..... II (6) Misdirected shipments are adequately controlled pending receipt of disposition

instructions

CATEGORY 3

II

3. Records. The official accounting and subsidiary records maintained by a contractor to show status and to control all Government property furnished to him or otherwise acquired by him.

a. Functional area: Inventory control (real and personal property).

(1) Accounting record conforms to NASA PR requirements and is accurate ______ (2) Documentation in support of accounting entries is sufficient___

I

I

(3) Accounting entries are made without undue delay__---

I

(4) Stock levels and reorder points are reflected on record, are reasonably sound, and

are consistent with contract provisions...

I

(5) Accounting records are closed by means of proper accounting entry, adequately

(1) Records of items fabricated conform to NASA PR requirements and are accurate.. (2) Documentation in support of accounting entries is sufficient___

I

I

c. Functional area: Receipt and issue file.

Records of items conform to NASA PR requirements and are accurate___. d. Functional area: Custodial records.

(2) Items reclaimed during salvage operations are properly classified__.

I

(3) Documentation in support of record is adequate___

I

(4) Records are properly closed_

I

f. Functional area: Multicontract cost and material control system.

(1) Records conform to NASA PR requirements and are accurate..

4. Storage and movement. The process of storing and moving all types of Government property includes movement from one point to another, for any purpose, and protection during movement and storage.

a. Functional area: Warehousing.

Characteristic

Class

(1) Housekeeping is adequate____

II

(2) Government property is segregated from contractor property_.

II

(3) Adequate protection of Government property is provided, including hazardous ma

terials, precious metals, sensitive items, etc___.

II

(4) Adequate measures for corrosion prevention, age control, etc.

II

(1) Item is moved under proper authority, supported by issue slip, shipping ticket, location change order, etc____

II

(2) Adequate protection is provided during movement, such as packing, covering skidding, proper handling equipment and techniques, and safety precautions (3) Loss or damage occurring during movement is reported to the property administrator

II

II

CATEGORY 5

5. Consumption. The process of incorporating Government-owned property into an end item or otherwise consuming it in performance of a contract.

a. Functional area: Reasonableness of consumption.

(1) Quantities consumed are reasonable when compared to bill of material, material requirement lists, established scrap rates, etc_

I

(2) Serially numbered or selectively matched items are incorporated in appropriate end item

II

b. Functional area: Conservation.

Characteristic

Class

(1) Excesses are promptly returned to stores and recorded_ (2) Where appropriate, maximum use is made of repair and salvage procedures in lieu of using new items____

II

II

(3) Where appropriate, a first-in first-out (FIFO) system is employed with respect to "dated" items___

II

CATEGORY 6

6. Utilization. The process of utilizing equipment, special tooling, special test equipment, bailed items, and material for the purpose for which furnished or acquired.

a. Functional area: Plant equipment, special tooling, special test equipment.

Characteristic

(1) Item is being used for purpose authorized by contract (not diverted to other use) -(2) Degree of utilization justifies retention.

b. Functional area: Material.

Characteristic

(1) Item is used for purpose for which authorized (not diverted to other use)_

(2) Degree of utilization justified retention of stock on hand..

CATEGORY 7

Class

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Class

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7. Maintenance. The process of providing the amount of care necessary to obtain a high quality of production and the most useful life of Government property.

a. Functional area: Preventive and corrective maintenance.

(1) Item is scheduled for periodic maintenance (including technical order compliance) - I (2) Maintenance is performed according to schedule___.

I

(3) Records of normal maintenance and corrective actions are adequate and accurate__ b. Functional area: Capital-type rehabilitation (includes real property).

(1) Inspection is scheduled to determine need for major repair, replacement, or other rehabilitation

I

(3) Rehabilitation is accomplished when authorized____.

adequate and accurate ______

(2) Inspection is performed as scheduled and results are reported..

(4) Records of major repair, replacement, or other rehabilitation, including cost, are

CATEGORY 8

8. Physical inventories. The process of physically locating and counting Government property and comparing it to records of such property includes the posting of findings and adjustments and the reporting of adjustments to the property administrator.

II

II

II

Characteristic

(1) Inventories are scheduled and performed as scheduled_____

Class

(2) Inventory record (count slip, inventory ticket, etc.) reflects complete data with re

spect to location, count, and description_..

(3) Inventory count is accurate__

b. Functional area: Recording.

II

I

I

(1) Inventory is posted to accounting record within reasonable period--

(2) Posting to accounting record is complete, showing date and quantity, and clearly

identified as an inventory entry---

(3) Posting to accounting record is accurate_

c. Functional area: Adjustments.

Characteristic

(1) Adjustments are posted to accounting records promptly after inventory____ (2) Adjustments are complete with respect to date and quantity and are clearly identi

fied as inventory adjustments_-

Class

I

I

I

(3) Adjustments are promptly reported to the Government property administrator_.. (4) All instances of loss, damage, or destruction are reported promptly and properly... II

CATEGORY 9

9. Subcontract control. The process of prime contractor control over subcontractor with respect to Government property.

a. Functional area: Prime contractor controls.

Characteristic

(1) Subcontract reflects adequate instructions with respect to subcontractor responsibilities

Class

I

(2) Records of Government property in possession of subcontractor conform to NASA PR requirements_____

I

(3) Adequate documentation supports accounting entries__ (4) Prime contractor surveillance over Government property in possession of subcon

I

tractors is adequate ---

II

b. Functional area: Subcontractor control. If the prime contractor has designated records and controls of a subcontractor as the official contract records and controls of Government property in the possession of the subcontractor or if adequacy of controls cannot be determined by review of the prime contractor's controls, the subcontractor's property control system will be evaluated in the same manner as that of a prime contractor, in accordance with procedures and criteria set forth in this Supplement.

CATEGORY 10

10. Disposition. The process of requesting disposition instructions and effecting disposal of Government property.

a. Functional area: Disclosure of excess.

Characteristic

Class

(1) Excess items are screened against need on other contracts prior to declaration as

excess

(2) Items determined excess are promptly reported_---

(3) Declaration as excess is complete and accurate_

(4) Item was allocable to contract from which declared excess__

b. Functional area: Disposal.

Characteristic

(1) There is proper authority for disposition____

(2) Item was disposed of within a reasonable time period after disposal authority was received

I

I

I

I

Class

I

I

I

I

I

(3) Identification tag is removed from item prior to disposal when appropriate-------(4) Documentation of disposition is complete and reflects authority, disposal action, and date of disposal and is posted to record__

(5) When appropriate, proceeds have been credited to the Government_.

FINDING AIDS

A list of current CFR volumes, a list of superseded CFR volumes, and a list of CFR titles, subtitles, chapters, subchapters and parts are included in the subject index volume to the Code of Federal Regulations which is published separately and revised annually.

Table of CFR Titles and Chapters

Alphabetical List of CFR Subtitles and Chapters
List of Sections Affected