Page images
PDF
EPUB
[blocks in formation]

This part establishes minimum requirements for the identification and marking of Government property in the possession or control of the contractor. The contractor shall identify and record all Government property promptly upon receipt, except as may be exempted by this part, and it shall remain so identified. Assigned Government property identification numbers shall 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 Government ownership is terminated. S1-401 Material

Equipment.

and

Noncapitalized

All Government material and noncapitalized equipment shall be identified as Government property except in those cases where:

(1) Material or noncapitalized equipment of the same type at the same location is not owned by the contractor, his employees, or other contracting agencies;

(2) Adequate physical control is maintained over sensitive items, 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;

(3) Property is of bulk type or by its size or general nature of packing or handling precludes adequate markings; or

(4) The property is segregated and kept physically separate from contractor-owned property at all times.

S1-402 Capitalized Equipment.

(a) Equipment Identification. Unless already marked in compliance with these instructions, all Government capitalized 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 auxilliary and attached to or otherwise a part of an item of capitalized equipment and is required for its normal operations, in which case such item shall be entered and described on the record of the equipment to which it is attached or of which it is otherwise a part. Identification shall be effected by affixing a num

bered decal direct to the equipment, or, when practicality dictates, by using indelible ink, acid, or electric etch, steel dies, or any other legible, permanent, conspicuous, and tamper proof method which will identify the equipment with the Government number assigned.

(b) Position of Markings or Identification. Identification shall be affixed on the main body of the item, not on a removable part. For practical purposes, identification should be placed where it is conspicuous and readily visible without requiring the item to be moved and where it will not interfere with the functioning, especially if it is a sensitive instrument. If the manufacturer's identification plate or label is in a readily accessible position, a position immediately above or below it is preferable to any other.

[blocks in formation]

S1-501 Annual Inventories.

The contractor shall perform an annual physical inventory of the following categories of Government property in his possession or control and shall require such inventories of any subcontractors that are in possession of Government property provided under the contract: (1) Capital property; (2) noncapitalized equipment; and (3) material maintained in stocks. The contractor's procedures for the performance of annual physical inventories constitute a necessary part of the contractor's property control system. For the purposes of this Manual, inventory consists of sighting, tagging or marking, describing, recording, and reporting the property involved, and reconciling the inventory results with the property records.

S1-502 Reporting Results of Annual Inventories.

The contractor shall promptly submit to the Property Administrator information as follows:

(1) A list on both a quantitiative and monetary basis of all discrepancies disclosed by the inventory in each category of Government property;

(2) A signed statement that physical inventory of Government property under the contract was completed on a specified date and that the contractor's official property records were found to be in agreement with the physical inventory except for the discrepancies noted; and

(3) If specifically requested by the Property Administrator, a list of all items of capital property.

S1-503 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 conpleted contract. Within 30 days after the contract's completion or termination, unless the Contracting Officer specifically approves an extension of time, the prime contractor shall submit a final inventory of Government property (including subcontractor property) in the form and detail as prescribed below: (a) Form. Separate reports are required for Government-furnished property and for contractor-acquired property and for each of the following property categories: (1) Real Property;

(2) Capitalized Equipment;
(3) Noncapitalized Equipment;
(4) Materials;

(5) Salvage; and

(6) Scrap.

(b) Details Required. Each item of capital property must be completely identified with sufficient detail to permit verification by reference to the covering reimbursement voucher or (if furnished by the Government) shipping or other documents. To the extent to which they apply, the following particulars are required for all items:

(1) Commercial description, adequate for screening and disposal purposes;

(2) Make, model, type, serial number, and National Stock Number when available; (3) Government identification number; (4) Quantity;

(5) Cost;

(6) Condition (use codes listed in Exhibit A of this Manual); and

(7) Location (contractor's facility or other site).

(c) Copies Required. Three copies of the inventory reports shall be submitted to the Property Administrator.

(d) Certification. The following certification signed by the contractor or an authorized official shall accompany each copy of the inventory schedules:

I do hereby certify as (Title) of (Name of Contractor) that the attached inventory reports are complete and correctly list and describe all items of property furnished to the contractor, or for which the contractor has been or will be reimbursed by the Government, for use in the performance of Contract No. which as of this date have not been consumed in performance of this contract; and that I will immediately notify the Contracting Officer of any change affecting

these inventory reports at any time prior to final disposition of the inventory.

(S)

Dated

(e) Disposal of Property. Disposal of property will be directed by the Contracting Officer, or a designated representative of the Contracting Officer, in accordance with the terms of the contract. The contractor shall not make disposition of any property except as so directed.

Part 6-Care, Maintenance, and Utilization S1-600 General.

This part establishes minimum requirements as to care, maintenance, and utilization of Government property in the possession or control of the contractor. 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, shall not relieve the contractor of these responsibilities. S1-601 Contractor's

gram.

Maintenance

Pro

(a) Policy. The contractor's maintenance program (which shall be approved in accordance with Part 1 of this Manual) shall be such as to provide, consistent with sound industrial practice and the terms of the contract, for:

(1) Disclosure of need for the performance of preventive maintenance;

(2) Disclosure and reporting of need for capital type rehabilitation; and

(3) Recording of work accomplished under the program.

(b) Preventive Maintenance. Preventive 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 preventive maintenance program shall consist of, but not be limited to, the following actions:

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

(2) Inspection of equipment at such periodic intervals as will assure detection of maladjustment, wear, or impending break

[blocks in formation]

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

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

(c) 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.

(d) 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.

S1-602 Utilization of Government Property.

The contractor's procedures shall be adequate to assure that Government property will be utilized only for those purposes authorized in the contract.

S1-603 Property in Possession of Subcon

[blocks in formation]

other nonprofit organizations whose primary purpose is the conduct of scientific research. This statutory authority is implemented by express provision in the Special Provisions of contracts with eligible institutions and organizations permitting the Contracting Officer to transfer to the contractor title to equipment acquired with research contract funds at any time during the term of the contract or upon its completion or termination. The contract will reserve the right to require the contractor to transfer title of equipment costing $1,000 or more per unit to the Government, or to a third party named by the Government, at any time prior to final payment under the contract.

S1-701 Conditions of Transfer.

In research contracts with eligible institutions and organizations, the Contracting Officer may, upon his own initiative or upon the request of the contractor, transfer title to equipment at any time during the term of the contract or upon its completion or termination. All transfers of title must be based upon a written determination by the Contracting Officer that transfer with respect to the specific items of equipment is consistent with the best interests of the Department. Until such time as title has been transferred, the property shall be administered and controlled as Government property in accordance with Parts 1 through 6 of this Mannual. Upon transfer, such equipment ceases to be Government property, however, the transfer of title is subject to the terms and conditions of the contract and this Part 7.

S1-702 Contractor's Obligations.

Although equipment ceases to be Government property when title to it is vested in or transferred to the contractor, nonetheless the following obligations attach to the property and the contractor agrees to such obligations by accepting title thereto:

(1) Utilization. The contractor agrees to use the property for the benefit of research under the contract and any extensions or successor contracts thereto and to continue to use such property for the benefit of research of interest to the Government;

(2) Charges with Respect to the Property. The contractor is not permitted to charge for any depreciation, amortization, or use with respect to such equipment under any Government contract, any Government grant, or any subcontract under a Government contract;

(3) Transfer of Title to Government. With respect to each item of equipment having a unit acquisition cost of $1,000 or more, the contractor's ownership rights are qualified by the contractor's express agreement to transfer title to any such items to the Government, or to a third party designated by

the Government, in accordance with any written request therefore issued by the Contracting Officer at any time prior to final payment under the contract;

(4) Control of Property. The contractor shall maintain a property control system which will provide for adequate identification, recording, location, utilization, maintenance, and physical inventory of equipment acquired with contract funds; and

N-1

Code

(5) Inventories Upon Completion or Termination. Immediately upon completion or termination of the contract, the contractor shall perform a physical inventory of all contractor-owned equipment acquired with contract funds and having a unit acquisition cost of $1,000 or more. The inventory shall be performed, prepared, and submitted in the same manner as prescribed in S1-503 of this Manual.

DOTPR Supplement 1, Exhibit A-Property condition codes

Brief definition

New-Excellent

N-2.............. New-Good...

New-Poor.

N-3

New-Fair.

N-4.............

E-1

E-2

E-3

E-4

0-1

Used-Reconditioned excellent
Used-Reconditioned good...

Used-Reconditioned fair

Used-Reconditioned poor..

Used-Usable without repairs-Ex-
cellent..

[See S1-503 of this manual]

Expanded definition

New or unused property in excellent conditions. Ready for use and identical or interchangeable with new items delivered by manufacturer or normal source of supply.

New or unused property in good condition. Does not quite qualify for N-1 (because slightly shopworn, soiled, or similar), but condition does impair utility.

New or unused property in fair condition. Soiled shopworn, rusted, deteriorated, or damaged and its utility is slightly impaired.

New or unused property so badly soiled, rusted, mildewed, deteriorated, or damaged, that its utility is seriously impaired.

Used property, but repaired or renovated and in excellent condition. Used property which has been repaired or renovated and, while still in good usuable condition, has become worn from further use and cannot qualify for excellent condition.

Used property which has been repaired or renovated but has deteriorated since reconditioning and is only in fair condition. Further overhauling required or expected to be needed in near future.

Used property which has been repaired or renovated and is in poor condition from serious deterioration such as from major wear and tear, corrosion, exposure to weather or mildew.

Property which has been slightly or moderately used, no repairs required, and still in excellent condition.

O-2.............. Used-Usable without repairs Used property, more worn than 0-1, but still in good condition with Good.. considerable use left before any important repairs would be required. O-3... Used-Usable without repairs-Fair.... Used property which is still in fair condition and usable without repairs; however, somewhat deteriorated with some parts (or portion) worn and should be replaced.

0-4

Used-Usable without repairs Used property which is still usable without repairs, but in poor condition
Poor..
and undependable or uneconomical in use. Parts badly worn and
deteriorated.

R-2................ Used-Repairs required—Good........

R-1............... Used-Repairs required-Excellent..... Used property, still in excellent condition, but minor repairs required (repairs would not cost more than 10 pct of acquisition cost). Used property, in good condition but considerable repairs required. Estimated cost of repairs would be from 11 to 25 pct of acquisition cost. Used property, in fair condition but extensive repairs required. Estimated repair costs would be from 26 to 40 pct of acquisition cost.

[blocks in formation]

Used property, in poor condition and requiring major repairs. Badly worn, and would still be in doubtful condition of dependability and uneconomical to use if repaired. Estimated repair costs from 41 to 65 pct of acquisition cost.

Property 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.

Property that has no reasonable prospect of being sold except for the recovery value of its basic material content.

(Sec. 205(c), 63 Stat. 389; 40 U.S.C. 486(c), 10 U.S.C. 2301-2314) [42 FR 45268, Sept. 8, 1977]

[blocks in formation]
« PreviousContinue »