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   <concept id="DFARS_252.245-7002"
            ditaarch:DITAArchVersion="1.2"
            class="- topic/topic concept/concept ">
      <title class="- topic/title ">
         <ph props="autonumber" class="- topic/ph ">252.245-7002</ph> Reporting Loss
of Government Property.</title>
      <conbody outputclass="clause" class="- topic/body  concept/conbody ">
         <p class="- topic/p ">As prescribed in <xref href="245.107.dita#DFARS_245.107"
                  base="DFARS-245.107"
                  outputclass="fm:ParaNumOnly"
                  class="- topic/xref ">245.107</xref> (4), use the following
clause:</p>
         <p outputclass="Ctr_SmCaps" class="- topic/p ">REPORTING LOSS OF GOVERNMENT PROPERTY
(JAN 2021)</p>
         <p outputclass="List1" class="- topic/p ">(a) <i class="+ topic/ph hi-d/i ">Definitions.</i> As used in this
clause—</p>
         <p class="- topic/p ">“Government property” is defined in the clause at FAR 52.245-1,
Government Property.</p>
         <p class="- topic/p ">“Loss of Government property” means unintended, unforeseen, or
accidental loss, damage, or destruction of Government property that
reduces the Government’s expected economic benefits of the property.
Loss of Government property does not include purposeful destructive
testing, obsolescence, normal wear and tear, or manufacturing defects.
Loss of Government property includes, but is not limited to—</p>
         <p outputclass="List2" class="- topic/p ">(1) Items that cannot be found after a
reasonable search;</p>
         <p outputclass="List2" class="- topic/p ">(2) Theft;</p>
         <p outputclass="List2" class="- topic/p ">(3) Damage resulting in unexpected harm
to property requiring repair to restore the item to usable condition;
or</p>
         <p outputclass="List2" class="- topic/p ">(4) Destruction resulting from incidents
that render the item useless for its intended purpose or beyond
economical repair.</p>
         <p class="- topic/p ">“Unit acquisition cost” means—</p>
         <p outputclass="List2" class="- topic/p ">(1) For Government-furnished property,
the dollar value assigned by the Government and identified in the
contract; and</p>
         <p outputclass="List2" class="- topic/p ">(2) For Contractor-acquired property, the
cost derived from the Contractor’s records that reflect consistently
applied, generally acceptable accounting principles.</p>
         <p outputclass="List1" class="- topic/p ">(b) Reporting loss of Government property.</p>
         <p outputclass="List2" class="- topic/p ">(1) The Contractor shall use the property loss function in the
Government-Furnished Property (GFP) module of the Procurement Integrated
Enterprise Environment (PIEE) for reporting loss of Government
property. Reporting value shall be at unit acquisition cost. Current PIEE users can access
the GFP module by logging into their account.  New users may register
for access and obtain training on the PIEE home page at https://piee.eb.mil/piee-landing.</p>
         <p outputclass="List2" class="- topic/p ">(2) Unless otherwise provided for in this
contract, the requirements of paragraph (b)(1) of this clause do
not apply to normal and reasonable inventory adjustments, i.e.,
losses of low-risk consumable material such as common hardware,
as agreed to by the Contractor and the Government Property Administrator.
Such losses are typically a product of normal process variation.
The Contractor shall ensure that its property management system
provides adequate management control measures, e.g., statistical
process controls, as a means of managing such variation.</p>
         <p outputclass="List3" class="- topic/p ">(3) The Contractor shall report losses
of Government property outside normal process variation, e.g., losses
due to—</p>
         <p outputclass="List3" class="- topic/p ">(i) Theft;</p>
         <p outputclass="List3" class="- topic/p ">(ii) Inadequate storage;</p>
         <p outputclass="List3" class="- topic/p ">(iii) Lack of physical security; or</p>
         <p outputclass="List3" class="- topic/p ">(iv) “Acts of God.”</p>
         <p outputclass="List2" class="- topic/p ">(4) This reporting requirement does not
change any liability provisions or other reporting requirements
that may exist under this contract.</p>
         <p outputclass="Endofclause" class="- topic/p ">(End of clause)</p>
      </conbody>
   </concept>
</dita>
