NFS part 1845

PART 1845

GOVERNMENT PROPERTY

SUBPART 1845.1

GENERAL

1845.102 Policy.

(a) One reason for the policy in FAR 45.102 that contractors shall ordinarily furnish all property is that providing Government property (whether Government-furnished or contractor-acquired) increases the Government's administrative burden and requires recordkeeping and personnel. Providing property may dilute the contractor's overall responsibility and weaken guarantees, end-item delivery requirements, and other contract terms. Furnishing property places NASA between the source of the property and the contractor. When NASA assumes responsibility for scheduling delivery of the property, NASA may be responsible for delays.

(b) Nevertheless, sometimes providing Government property to contractors may be essential to contract performance or otherwise advantageous to NASA. For example, furnishing standardized production property and raw materials may be necessary for uniformity of products. Furnishing Government property can reduce the production cycle by eliminating the lead time necessary for the contractor to acquire or fabricate production property. NASA may be able to broaden its competitive base by offering property to firms unable to acquire their own, or by offering production property or critical material not generally available throughout the industry. NASA may lower contract costs by offering existing Government property or new Government property obtainable at prices lower than those available to the contractor. NASA may also provide Government property to educational or other nonprofit institutions to facilitate scientific research.

(c) NASA has several types of contract property accountability options. The selection of the combination of Government property clauses for a given contract is dependent upon variables such as whether performance is on-site at a NASA installation, contract purpose, and the degree of contractor management independence that is inherent in the statement of work (see 1845.102-70(b)).

1845.102-70 Procedures.

(a) The contracting officer shall, as applicable, include in each solicitation a--

(1) List of any Government property (showing location and condition), including Government-owned tooling, that will be furnished for the performance of the contract and any related special provisions;

(2) Requirement that information be furnished regarding (i) any Government-owned facilities or items of industrial equipment or special tooling requested to be used in performing the contract, (ii) their acquisition cost, (iii) identification of the Government contract under which the property is accountable, (iv) rental provisions, and (v) other relevant matters;

(3) Requirement that additional facilities that the offeror requests to be provided by the Government be described and identified by category, such as "Land," "Buildings," and "Equipment" (see Subpart 1845.71); and

(4) Requirement that additional special test equipment that the offeror requests to be provided by the Government be described and its intended use, estimated cost, and proposed location be shown.

(b) To ensure the contract property accountability option selected is appropriate for a particular contract and is in consonance with installation resources and policies regarding use of Government property, the contracting officer shall, as part of the solicitation/contract review process, provide a copy of the solicitation/ contract to the installation supply and equipment management officer (SEMO) for review. It shall be the responsibility of the SEMO to provide comments or recommendations to the contracting officer within the review time specified. In circumstances where an award of a contract is contemplated, and a solicitation was not issued (e.g., contracts resulting from broad agency announcements and unsolicited proposals), the contracting officer shall provide a copy of the contract prior to award to the installation SEMO for review and comment. The contracting officer shall provide this opportunity for SEMO review and comment as a part of the solicitation/contract review process for procurements with an estimated cost over $1,000,000 or for procurements with an estimated cost over $50,000 (1) for work expected to be performed on-site at a NASA installation, or (2) which provide existing government property, or (3) which require contractor acquisition of Government property.

1845.104 Review and correction of contractors' property control systems.

(a) When review of the contractor's property control system is not delegated to DOD, the NASA contracting officer or property administrator shall conduct the review as required in Subpart 1845.72.

(b) In each solicitation under which use of Government property is contemplated, the contracting officer shall require the offeror to--

(1) Furnish the date of the last Government review of its property control and accounting system and describe actions taken to correct any deficiencies found;

(2) State that the offeror has reviewed, understands, and can comply with all property management and accounting procedures in the solicitation, FAR Subpart 45.5, and Subparts 1845.5, 1845.70, and 1845.71 of this Regulation; and

(3) State whether the costs associated with subparagraph (2) of this section are included in its cost proposal.

1845.104-70 Contract property administration by the Government.

DOD will conduct contract property administration in accordance with their regulations and procedures and NASA special delegation instructions. When property administration is not delegated to DOD, NASA shall conduct contract property administration in accordance with Subpart 1845.72.

1845.106 Government property clauses.

In addition to the applicable Government property clauses prescribed in FAR 45.106, the contracting officer shall insert the following clause(s) and provision as appropriate.

1845.106-70 NASA contract clauses and solicitation provision.

(a) The contracting officer shall insert the clause at 1852.245-70, Acquisition of Centrally Reportable Equipment, in all solicitations and contracts that include a Government property clause. See 1845.7103 and the clause at 1852.245-70 for instructions on preparing DD Form 1419.

(b) (1) The contracting officer shall insert the clause at 1852.245-71, Installation-Provided Government Property, in solicitations and contracts when Government property is to be provided to on-site contractors, and the Government will retain accountability for the property. The contracting officer shall identify in the contract Schedule the nature and extent of such property and the installation supply and equipment management officer will make such property available to the contractor on a no-charge-for-use basis. The contracting officer shall also list in the contract the applicable installation property management directives.

(2) Contracting officers may also use the clause if Government property is provided to off-site local support service contractors. In this case, the concurrence of the installation supply and equipment management officer must be obtained and indicated in the procurement request.

(3) To avoid diluting contractor responsibilities when they include separate procurement authority and responsibility, contracting officers may preclude such contractors from utilizing the installation's central receiving facility for receiving contractor-acquired property. To accomplish this, the contracting officer shall use the clause with its Alternate I. The contracting officer shall review the acquisitions reported by the contractor for their appropriateness, and the supply and equipment management officer shall ensure that records are established.

(4) Contracting officers shall clearly identify in a separate schedule any property provided under a Government property clause but not also subject to the clause at 1852.245-71. The contracting officer shall address any specific maintenance considerations (for example, requiring use of a central calibration facility) elsewhere in the contract.

(c) The contracting officer shall insert the clause at 1852.245-72, Liability for Government Property Furnished for Repair and Services, in fixed-price solicitations and contracts (except for experimental, developmental, or research work with educational or nonprofit institutions, where no profit is contemplated) for repair, modification, rehabilitation, or other servicing of Government property, if such property is to be furnished to a contractor for that purpose. If (1) a substantial quantity of parts or material will be furnished, (2) a significant amount of scrap will result from the work to be performed, or (3) other Government property will be furnished to or acquired by the contractor, the contract will also contain the appropriate Government property clause (see FAR 45.106) and the contract Schedule shall provide that such property shall be governed by the terms of that clause. When minor repairs are obtained under small purchase procedures, the procedures of this paragraph (c) shall not apply. Contracting officers shall not require additional insurance under the clause at 1852.245-72 unless the circumstances clearly indicate advantages to the Government.

(d) The contracting officer shall insert the clause at 1852.245-73, Financial Reporting of Government-Owned/ Contractor-Held Property, in all contracts unless (1) it is virtually certain that Government property will not be furnished to or acquired by the contractor (e.g., as in most study contracts and certain contracts for services), (2) the only property to be provided is for the purpose of repair or servicing (see 1852.245-72), or (3) all property to be provided is subject to the clause at 1852.245-71, Installation-Provided Government Property (see paragraph (b) of this section). Reporting shall be on an annual basis except when an on-site contractor performs property acquisition and management for the Government. In these cases, the Government may require more frequent reporting, and the contracting officer shall use the clause with its Alternate I (monthly reporting) or Alternate II (quarterly reporting) as appropriate. The contracting officer shall insert in the clause the address and office code of a single organization within the cognizant NASA installation designated as the focal point for control and distribution of NASA Form 1018.

(e) The contracting officer shall insert the clause at 1852.245-74, Contractor Accountable On-Site Government Property, in solicitations and contracts when accountability rests with an on-site contractor. The contracting officer shall obtain approval to use the clause at 1852.245-74 in lieu of the clause at 1852.245-71 from Director, Logistics Management Office (Code JLG), NASA Headquarters. The request for approval shall be written and shall include a determination of costs that will be (i) avoided (e.g., additional costs to the installation's property management systems and staffing) and (ii) incurred (e.g., reimbursable costs of the contractor to implement, staff, and operate separate property management systems on-site, and resources needed for performance of, or reimbursement for, property administration) under contractor accountability.

(f) The contracting officer shall insert the clause at 1852.245-75, Title to Equipment, in solicitations and contracts where the clause at FAR 52.245-2 (Alternate II) or 52.245-5 (Alternate I) is used. Insert a dollar value not less than $5,000, based on the particular procurement, and identify the property for which vesting of title with the Government is appropriate.

(g) The contracting officer shall insert the clause at 1852.245-76, List of Government-Furnished Property, in solicitations and contracts if the contractor is to be accountable under the contract for Government property. Insert the name of the Government installation, contractor's plant, or other site(s) where the Government property will be used. Insert a description of the item(s), quantity, acquisition cost, and date the property will be furnished to the contractor.

(h) The contracting officer shall insert the clause at 1852.245-77, List of Installation-Provided Property and Services, in solicitations and contracts that authorize contractor use of on-site Government

property and services, such as office space, the cafeteria, or first-aid. Insert the attachment number identifying the equipment to be made available to the contractor. Insert the name of the installation service facilities, such as a library, computer facility, or health center, that the contractor will be authorized to use. The property and services may be specified, modified, and updated to meet the needs of the particular procurement.

(i) The contracting officer shall insert the clause at 1852.245-78, Space Hardware Reporting, in solicitations and contracts where space hardware reporting is contemplated. Insert the space hardware to be reported.

(j) The contracting officer shall insert the provision at 1852.245-79, Use of Government-Owned Property, in all solicitations when Government property may be used by the contractor.

(k) The contracting officer shall insert the clause at 1852.245-80, Use of Government Production and Research Property on a No-Charge Basis, in solicitations and contracts when Government production and research property (facilities, special test equipment, or special tooling) accountable under another contract(s) is authorized for use. Insert the contract number(s) under which the Government property is accountable.

1845.106-71 Plant reconversion and plant clearance.

The contracting officer must obtain the prior approval of the Associate Administrator for Procurement (Code H) for any solicitation provision or contract clause that would defer negotiation of costs for plant reconversion or plant clearance until after award.

SUBPART 1845.3

PROVIDING GOVERNMENT

PROPERTY TO CONTRACTORS

1845.301 Definitions.

"Provide," as used in this subpart in such phrases as "Government property provided to the contractor" and "Government-provided property," means either to furnish, as in "Government-furnished property," or to permit to be acquired, as in "contractor-acquired property." See FAR 45.101 for definitions of "contractor-acquired property" and "Government-furnished property."

"Space property," (see 1845.501).

1845.302 Providing facilities.

1845.302-1 Policy.

(a) The procurement officer is designated to make determinations required under FAR 45.302-1(a)(4) on authorizing the use of Government facilities.

(b) When any of the conditions listed in FAR 45.302-1(d) is met, the requirements of FAR 45.302-1(a)(4) do not apply.

(c) In addition to the exceptions listed in FAR 45.302-1(a), existing NASA-owned facilities (whether contractor acquired or Government furnished) may be retained for the remainder of the contract period and furnished under any follow-on contract for the same effort if the contracting officer determines that to do so would be in the best interest of the Government, provided that:

(1) The facilities are required to accomplish the purpose of the contract;

(2) The resulting contract contains a provision requiring the contractor to replace any of the facilities that reach the end of their useful life during the contract period, or which are beyond economical repair, if the facilities are still needed for contract performance. Such replacements shall be made with contractor-owned facilities. The contract provision shall also expressly prohibit contractor acquisitions of facility items for the Government, unless specifically authorized by the contract or consent has been obtained in writing from the contracting officer pursuant to FAR 45.302-1(a);

(3) Consideration has been given to any alternative uses by Government personnel within the agency, in consultation with the Industrial Property Officer; and

(4) The contracting officer documents the file with a detailed explanation of the circumstances which make furnishing of the facilities in the best interest of the Government.

1845.302-2 Facilities contracts.

Unless termination would be detrimental to the Government's interests, contracting officers shall terminate facilities contracts when the Government production and research property is no longer required for the performance of Government contracts or subcontracts. Contracting officers shall not grant the contractor the unilateral right to extend the time during which it is entitled to use the property provided under the facilities contract.

1845.302-3 Other contracts.

In addition to the conditions listed in FAR 45.302-3, the contracting officer may also provide facilities to a contractor under a contract other than a facilities contract if the contract is for less than 6 months or provides fewer than 6 items of plant equipment and no other facilities.

1845.302-70 Securing approval of facilities projects.

(a) Pursuant to NMI 7330.1, Delegation of Authority - Approval Authorities for Facility Projects, the contracting officer must approve facilities projects involving leasing, construction, expansion, modification, rehabilitation, repair, or replacement of real property.

(b) The contracting officer's written authorization is required before any change is made in the scope or estimated cost of any facilities project.

1845.302-71 Acquisition of ADPE.

Any contractor proposed acquisition of automatic data processing equipment as defined in the FIRMR shall be--

(a) Submitted on DD Form 1419, or equivalent format, through the contracting officer to the installation's ADPE staff, for screening availability; and

(b) Approved in accordance with the provisions of NASA Handbook 2410.1, Information Processing Resources Management.

1845.302-72 Long-term facilities use.

For procurements in which (a) the proposed contract, exclusive of options, will be for a shorter period than the useful life, for the program, of any required contractor-owned or leased facilities, and (b) the facilities are unlikely to be needed by the contractor for any purpose other than the program effort being contracted for, see 1807.170-1(b)(10)(i).

1845.302-73 Determination and findings.

(a) Procedure. Determination and findings (D&F) required under FAR 45.302-1(a)(4) shall be prepared by the contracting officer and approved by the procurement officer. Prior to approval of the D&F by the procurement officer, concurrence must be obtained from the Director of Administration or equivalent, to ensure that the requiring activity and the installation supply and equipment management officer agree to the use of the Government facilities by the contractor. D&Fs shall address individual types of facilities to be provided to the contractor. Reference to specific variations in quantities of items to be provided should be included in the D&F if additional requirements are anticipated. A separate D&F is required before adding new types of items or significant changes in quantity. A separate D&F is also required before adding any new work to the contract that requires additional Government facilities.

(b) Format. A sample format follows:

(Format)

National Aeronautics and Space

Administration

Washington, DC 20546

Determination and Findings

Decision to Provide Government

Facilities

On the basis of the following findings and determinations, Government-owned facilities may be provided to [insert the name of the contractor] pursuant to the authority of FAR 45.302-1(a)(4).

Findings

1. The [insert the name of the contracting activity] and the contractor (have entered)/(proposed to enter) into Contract No. [insert the contract number] . (Include the following information: Type of contract, contract value, and a brief description of the scope of work performed under the contract.)

2. (Justify that Government facilities are needed for performance under the contract. The justification shall demonstrate either (i) that the contract cannot be fulfilled by any other means, or (ii) that it is in the public interest to provide the facilities. It is imperative that the justification be fully substantiated by evidence.)

3. (If the contract effort cannot be fulfilled by any other means, indicate why the contractor cannot provide the facilities. For example, due to financial constraints, the contractor has certified inability to acquire the facilities; or, even though the contractor is willing and financially able to acquire these facilities for its own account, the contractor has stated that time will not permit making arrangements to obtain timely delivery to meet NASA requirements. If timely delivery is the problem, state when the contractor will replace the Government facilities with contractor-owned facilities. Address leadtime, validate the contractor's claims, and state that private financing was sought and either not available or not advantageous to the Government. If private financing was not advantageous to the Government, provide justification. Indicate other alternatives considered and reasons for rejection.)

4. (Give a general description of the types of facilities to be provided and indicate the variation in quantities of items based on functional requirements. Explain how these facilities pertain to the scope of work to be completed. State that the contract cannot be accomplished without the specified facility items being provided. Include an estimate of the value of the facilities and a statement that no facilities items under $10,000 unit cost will be provided unless the contractor is a nonprofit, on-site, or the facilities are only available from the Government.

5. (Indicate whether the property will be accountable under this contract or a separate facilities contract.)

Determination

For the reasons set forth above, it is hereby determined that the Government-owned facilities identified herein will be provided to the contractor.

Procurement Officer Date

(End of format)

SUBPART 1845.4

CONTRACTOR USE AND

RENTAL OF

GOVERNMENT PROPERTY

1845.402 Authorizing use of Government production and research property.

(a) A NASA contracting officer desiring to authorize use of Government production and research property under the cognizance of another contracting officer shall obtain that contracting officer's concurrence. If concurrence is denied, the contracting officer shall raise the matter to a level above that of the cognizant contracting officer.

(b) NASA contracting officers having cognizance over NASA production and research property may authorize its use on contracts of other agencies if such use will not interfere with NASA's primary purpose for the property and will not extend beyond the expected expiration or completion date of the NASA contract.

1845.403 Rental--Use and Charges clause.

The Directors of NASA field installations have been designated (see NMI 5101.24, Delegation of Authority--To Take Actions in Procurement, Grants, Cooperative Agreements, and Related Matters [Various Officials]) to make the determinations required by FAR 45.403(a) on modified rental rates.

1845.405 Contracts with foreign governments or international organizations.

(a) It is NASA's policy to recover a fair share of the cost of Government production and research property if such property is used in performing services or manufacturing articles for foreign countries or for international organizations.

(b) The prior written approval of the Associate Administrator for Procurement (Code H) is required for the use of Government production and research property on work for foreign countries or for international organizations. Before requesting approval, the contracting officer shall obtain the concurrence of the Director, Logistics Management Office (Code JLG), the General Counsel (Code G), and the Director, International Relations Division (Code IR).

(c) Contracting officers shall forward requests for approval to the Associate Administrator for Procurement (Code HK), along with a summary of the circumstances involved, including at least--

(1) The name of the requesting contractor;

(2) The number of the contract under which the equipment is controlled;

(3) A description of the equipment;

(4) The name of the foreign contractor and the relationship of the foreign contractor to its government or to any international organization;

(5) A description of the articles to be manufactured or services to be performed;

(6) A statement that the intended use will not interfere with the current or foreseeable requirements of the United States or require use of the equipment beyond the expected expiration or completion date of the NASA contract;

(7) A statement that the foreign government's placement of the contract directly with the contractor and the use of Government production and research property is consistent with the best interests of the United States;

(8) A statement that such use is legally authorized; and

(9) Any evidence of endorsement by another agency of the U.S. Government based on national security or foreign policy of the United States.

(d) Use, if approved, shall be subject to rent in accordance with FAR 45.403.

1845.406 Use of Government production and research property on independent research and development programs.

Contractors generally will not be authorized to use Government property for independent research and development on a rent-free basis except in unusual circumstances when it has been determined by the contracting officer that--

(a) Such use is clearly in the best interests of the Government (for example, the project can reasonably be expected to be of value in specific Government programs); and

(b) The policy in FAR 45.201 is adhered to in that no competitive advantage will accrue to the contractor through such use.

1845.407 Non-Government use of plant equipment.

Consistent with the guidelines in FAR 45.407, the following procedures apply to the non-Government use of plant equipment:

(a) Before authorizing non-Government use exceeding 25 percent, the contracting officer shall obtain the approval of the Associate Administrator for Procurement (Code HK). In addition, non-Government use of machine tools and secondary metal-forming and -cutting machines (Federal

Supply Classes 3405, 3408, 3410, 3411-3419, and 3441-3449) exceeding 25 percent requires the concurrence of the Director, Logistics Management Office (Code JLG). Requests for the approval of the Associate Administrator for Procurement (Code HK) shall be submitted at least 6 weeks in advance of the projected use and shall include--

(1) The number of active plant equipment items involved and their total acquisition cost; and

(2) An itemized listing of active equipment having an acquisition cost of $25,000 or more, showing for each item the nomenclature, year of manufacture, and acquisition cost.

(b) The percentage of Government and non-Government use shall be computed on the basis of time available for use. For this purpose, the contractor's normal work schedule, as represented by scheduled production shift hours, shall be used. All active plant equipment having a unit acquisition cost of less than $25,000 located at any single plant may be averaged over a quarterly period. Equipment having a unit acquisition cost of $25,000 or more shall be considered on an item-by-item basis.

(c) Approval for non-Government use shall be for a period not exceeding 1 year. Approval for non-Government use in excess of 25 percent shall not be for less than 3 months.

SUBPART 1845.5

MANAGEMENT OF

GOVERNMENT PROPERTY IN

THE POSSESSION OF CONTRACTORS

1845.501 Definitions.

"Space property" means personal property peculiar to NASA aeronautical and space programs and not otherwise included in the categories of property in FAR 45.501. It includes such items as aircraft, space vehicles, engines, similar components, and related support equipment. The term "space property" is synonymous with the term "agency-peculiar property" as defined in FAR 45.301.

"Centrally reportable equipment (CRE)" means plant equipment, special test equipment (including components), special tooling, and non-flight space property (including ground support equipment) (a) generally commercially available and used as a separate item or component of a system, (b) having an acquisition cost of $1,000 or more, and (c) identifiable by a manufacturer and model number.

1845.502 Contractor responsibility.

1845.502-1 Receipts for Government property.

Receipts for Government property shall comply with the instructions for preparing NASA Form 1018, Report of Government-Owned/Contractor-Held Property (see 1845.7101).

1845.502-70 Government-furnished property.

All initial Government-furnished property must be described in the contract Schedule or specifications, regardless of property category. Any additional Government-furnished property must be described in a bilateral modification to the contract, with the property categorized and priced. Furthermore, to obtain Government-furnished facilities, the contractor must submit the written statement prescribed by FAR 45.302-1(a)(4). In the event a formal facilities application is also required by the contracting officer, its justification statement on financing will satisfy this requirement.

1845.502-71 Contractor-acquired property.

All contractor-acquired property must be authorized by the contract and is subject to a determination by the contracting officer that it is allocable to the contract and reasonably necessary. The acquisition (and fabrication) of Government property is further subject to the following conditions, depending on category of property:

(a) Facilities.

(1) Prior contracting officer approval, if the facilities are not already described in a contract Schedule as contractor-acquired.

(2) Submission of DD Form 1419, DOD Industrial Plant Requisition, or equivalent format, and return of Certificate of Nonavailability if the facilities qualify as centrally reportable equipment (CRE).

(3) Submission of the written statement prescribed by FAR 45.302-1(a)(4).

(b) Special test equipment.

(1) Contracting officer approval 30 days in advance if the equipment is not identified in the invitation for bids (in sealed bidding) or contract (in negotiated procurements).

(2) Submission of DD Form 1419, or equivalent format, and return of Certificate of Nonavailability if the equipment (or any component) qualifies as CRE.

(c) Special tooling.

(1) If the contract contains a Subcontracts clause, advance notification to the contracting officer and contracting officer consent if required by that clause.

(2) If the contract is a fixed-price contract, submission of the list to the contracting officer within 60 days after delivery of the first production end items (or later as prescribed by the contracting officer), unless the tooling is already identified in the solicitation.

(3) Submission of DD Form 1419 or equivalent format and return of Certificate of Nonavailability if the tooling (or any component) qualifies as CRE.

(d) Material. If the contract contains a Subcontracts clause, advance notification to the contracting officer and contracting officer consent if required by that clause.

(e) Space Property.

(1) If the contract contains a Subcontracts clause, advance notification to the contracting officer and contracting officer consent if required by that clause.

(2) Submission of DD Form 1419, or equivalent format, and return of Certificate of Nonavailability if the property (or any component) qualifies as CRE.

1845.505 Records and reports of Government property.

1845.505-2 Records of pricing information.

If DD Form 250's are used by a NASA installation as invoices or DD 250's or other shipping/delivery documents are used for property receiving purposes, unit prices must be shown for each item of Government property included on the forms.

1845.505-14 Reports of Government property.

(a) Property accounts. The contractor's property control system shall be such as to provide the dollar amount of Government property for which the contractor is accountable in the following classifications, in accordance with the instructions in Subpart 1845.71:

(1) Land and rights in land.

(2) Buildings.

(3) Other structures and facilities.

(4) Leasehold improvements.

(5) Plant equipment.

(6) Special tooling.

(7) Special test equipment.

(8) Material.

(9) Space hardware.

(b) Facilities, special tooling, and special test equipment. The contractor's property control system shall identify the items in (a)(1) through (7) above as contractor-acquired or Government-furnished.

(c) Material and space hardware. The contractor's property control system shall provide the dollar value of items in (a)(8) and (9) above for which the contractor is accountable. Reporting of material, however, is required only when the balance on hand at the end of the reporting period is $75,000 or more. Reporting of space hardware is required only by direction of the contracting officer.

(d) Submission of reports. When required by the contract (see 1845.106-70(d)), the contractor shall submit a Report of Government-Owned/Contractor-Held Property, NASA Form 1018, in accordance with the instructions in Subpart 1845.7101 and the contract clause at 1852.245-73.

1845.505-670 Reporting centrally reportable equipment (CRE).

(a) NASA-furnished or contractor-acquired CRE as defined in 1845.501 shall be reported to the NASA Equipment Management System (NEMS). The contractor shall initially report all unreported items in its possession and subsequently shall report items to NEMS (1) at the time of receipt and acceptance of accountability, (2) when major changes occur in the data initially submitted to NASA, and (3) when the equipment is no longer required for or actively being used in pursuit of NASA programs or projects. Reporting shall be accomplished by completing Section I of DD Form 1342, DOD Property Record (see 1845.7102), or by other means acceptable to the contracting officer, provided DD Form 1342-equivalent data elements are furnished. The data furnished when the equipment is reported pursuant to (3) above shall include the equipment's current condition code. Reportable data shall be forwarded through the contracting officer of the cognizant NASA installation within 15 working days after the event that created the need for their preparation and shall be marked "FOR NEMS".

(b) The forms prepared for components shall be clearly marked "COMPONENT".

(c) Each year, the industrial property officer shall provide the contractor a list of NEMS data bank records as of June 30th for that contractor. The contractor shall verify the list or provide the necessary corrections.

1845.508 Physical inventories.

NASA contractors shall reconcile inventories described in FAR 45.508 with the official property records and submit reports to the property administrator within 30 days after inventory completion. The contractor shall investigate all losses of property and discoveries of unrecorded property to determine the (a) causes of the discrepancy and (b) actions needed to prevent its recurrence.

SUBPART 1845.6

REPORTING, REDISTRIBUTION,

AND DISPOSAL

OF CONTRACTOR INVENTORY

1845.604 Restrictions on purchase or retention of contractor inventory.

(a) No contractor may sell contractor inventory to persons known by it to be NASA or DOD personnel who have been engaged in administering or terminating NASA contracts.

(b) (1) The contractor's or subcontractor's authority to approve sale, purchase, or retention at less than cost by a subcontractor, and the subcontractor's authority to sell, purchase, or retain at less than cost contractor inventory with the approval of the contractor or next higher-tier subcontractor does not include authority to approve--

(i) A sale by a subcontractor to contractor or the next higher-tier subcontractor or to an affiliate of the contractor or of either subcontractor; or

(ii) A sale, purchase, or retention at less than cost by a subcontractor affiliated with the contractor or next higher-tier subcontractor.

(2) Each excluded sale, purchase, or retention requires the written approval of the plant clearance officer.

1845.606 Inventory schedules.

1845.606-1 Submission.

See 1845.505-6 for special instructions on intra-agency screening of centrally reportable equipment (CRE).

1845.607 Scrap.

1845.607-70 Contractor's approved scrap procedure.

(a) When a contractor has an approved scrap procedure, certain property may be

routinely disposed of in accordance with that procedure and not processed under this subpart.

(b) A plant clearance case shall not be established for property disposed of through the contractor's approved scrap procedure.

(c) The plant clearance officer shall review the contractor's scrap and salvage procedure, particularly regarding sales, before its approval by the property administrator. The plant clearance officer shall ensure that the procedure contains adequate requirements for inspecting and examining items to be disposed as scrap. When the contractor's procedure does not require physical segregation of Government-owned scrap from contractor-owned scrap and separate disposal, care shall be exercised to assure that a contract change that generates a large quantity of property does not result in an inequitable return to the Government. In such a case, the property administrator shall make a determination as to whether separate disposition of Government scrap would be appropriate.

(d) Scrap, other than that disposed of through the contractor's approved scrap procedure, shall be reported on appropriate inventory schedules for disposition in accordance with the provisions of FAR Part 45 and this NASA FAR Supplement.

(e) Silver, gold, platinum, palladium, rhodium, iridium, osmium, and ruthenium; scrap bearing such metals; and items containing recoverable quantities of them shall be reported to the Defense Reutilization and Marketing Service, DRMS-R, Federal Center, Battle Creek, MI 49017-3092, for instructions regarding disposition.

1845.608 Screening of contractor inventory.

1845.608-1 General.

NEMS Coordinators are the focal points at NASA installations for intra-agency screening of centrally reportable equipment (see 1845.505-670). Property Disposal Officers (PDO's) are the focal points at NASA installations for intra-agency screening of all other contractor inventory. NEMS Coordinators/PDO's shall acknowledge receipt of inventory schedules within 30 days and simultaneously provide the plant clearance officer a NASA screening completion/release date. Screening shall be accomplished in accordance with NASA Handbooks 4200.1 and 4300.1.

1845.608-6 Waiver of screening requirements.

The Director, Logistics Management Office (Code JLG), has been designated to authorize exceptions to screening requirements.

1845.610 Sale of surplus contractor inventory.

1845.610-2 Exemptions from sale by GSA.

Letters seeking exemptions from GSA-conducted sales shall be directed to the Director, Logistics Management Office (Code JLG).

1845.610-3 Proceeds of sale.

When payments are due the contractor under the contract, and unless the contract provides otherwise, the Government Property clause requires that the proceeds of any sale, purchase, or retention be (a) credited to the Government as part of the settlement agreement, (b) otherwise credited to the price or cost of the work covered by the contract, or (c) applied in the manner directed by the contracting officer. The plant clearance officer shall maintain an open suspense record until he or she has verified that credit has been applied, unless another Government representative has specifically assumed this responsibility.

1845.610-4 Contractor inventory in foreign countries.

Foreign disposals shall be accomplished in accordance with NASA Handbook 4300.1.

1845.613 Property disposal determinations.

Determinations to abandon or destroy NASA contractor inventory shall be referred to the installation PDO for subsequent review by the Property Disposal Review Board under NASA Handbook 4300.1.

1845.615 Accounting for contractor inventory.

In addition to the distribution requirements for Standard Form 1424, Inventory Disposal Report, a copy of the form shall be provided to the NASA installation Industrial Property Officer or PDO.

SUBPART 1845.70

NASA EQUIPMENT

MANAGEMENT SYSTEM

1845.7001 Policy.

In accordance with the policies in FAR Part 8, new equipment shall not be designed, developed, or procured unless it is determined that the requirement cannot be satisfied with items already available. Accordingly, before acquisition by an installation or the issuance of an authorization to a contractor to acquire new centrally reportable equipment (see 1845.501), the NASA Equipment Management System (NEMS) shall be screened and a certificate of non-availability issued by the cognizant installation NEMS Reutilization Coordinator, attesting to the non-availability of existing Government-owned equipment to satisfy the requirement.

1845.7002 Application.

The NEMS requirements apply to all NASA acquisitions under which equipment reportable to NEMS is acquired either by NASA or by a NASA contractor for use in the performance of NASA work.

1845.7003 General.

NEMS is an agencywide accountability and control system that includes basic information for reutilization of equipment valued at $500 or more held by NASA installations or $1,000 or more held

by NASA contractors. General-purpose or standard items of commercial manufacture are registered in NEMS.

1845.7004 Interface with NEMS coordinators and technical project office.

NASA contracting officers with contracts subject to NEMS shall maintain close interface with the installation NEMS Reutilization Coordinator and the technical project office in (a) the conduct of contractor reporting to the NEMS, (b) the screening of NEMS records before authorizing contractors to acquire equipment, (c) the reporting and processing of equipment no longer required for NASA programs or projects, and (d) all other matters pertaining to compliance with the property provisions of NASA contracts.

1845.7005 Retention of NEMS equipment.

The contracting officer may authorize retention of NEMS equipment, provided the contractor requests approval in writing concurrently with reporting to NEMS under the provisions of 1845.505-670 and provided the equipment is being (a) held for approved future NASA programs and projects identified to a specific requirement or (b) used on other Government work as approved by the contracting officer. Approval for the use of equipment on other Government work shall not exceed 6 months beyond its use on NASA work unless loan of the equipment under an interagency agreement has been arranged or action has been initiated for transfer of the equipment to the using agency and appropriate time is allowed for completing the transfer.

SUBPART 1845.71

FORMS PREPARATION

1845.7101 Instructions for preparing NASA Form 1018.

This section provides guidance in the preparation of NASA Form 1018 (see Subpart 1853.3), which is required of all contractors that have been furnished, or have acquired, Government-owned property under the terms of their contract. The classifications of property, the related costs to be reported, and the reporting requirements are set forth below:

1845.7101-1 Property classification accounts.

The following property classifications and related costs apply only to financial reporting under NASA Form 1018:

(a) Land. This classification includes costs of land, capital improvements to land (except buildings and other structures and facilities), and costs incidental to acquiring and preparing land for use, such as appraisal fees, clearing costs, drainage, grading, landscaping, plats and surveys, removal and relocation of the property of others as part of a purchase contract, removal or destruction of structures or facilities purchased but not used, and legal fees and expenses.

(b) Buildings. This classification includes costs of buildings, improvements to buildings, and fixed equipment normally required for the functional use of the building that becomes permanently attached to and made a part of it and cannot be removed without cutting into the walls, ceilings, or floors. Fixed equipment includes plumbing, heating and lighting equipment, elevators, central air-conditioning systems, and built-in safes and vaults. It also includes the cost of all

equipment of any type built into, affixed to, or installed in real property if the installation cost, including special foundations or unique utilities or services, or the facility restoration cost after removal, is substantial.

(c) Other structures and facilities. This classification includes costs of acquisitions and improvements of other structures and facilities such as airfield pavements; harbor and port facilities; power production facilities and distribution systems; reclamation and irrigation facilities; flood control and navigation aids; storage, industrial, service, and research and development facilities other than buildings; utility systems (heating, sewage, water, and electrical) when they serve several buildings or structures; communication systems; traffic aids; roads and bridges; railroads; monuments and memorials; and nonstructural improvements such as sidewalks, parking areas, and fences. It also includes the cost of all equipment of any type built-in, affixed, or installed where the installation cost, including special foundations or unique utilities or services, or the facility restoration cost after removal, is substantial.

(d) Leasehold improvements. This classification includes NASA funded costs of long-term capital improvements (more than 3 years) to leases, rights, interests, and privileges relating to land such as easements, rights-of-way, permits, use agreements, and water, air, and mineral rights. It also includes NASA funded costs of improvements (costing $5,000 or more and determined to be a capital asset) made to land, buildings, and other structures and facilities occupied by a NASA contractor, but leased either indirectly through contract or directly by NASA rather than owned by NASA. However, the cost of NASA-owned buildings and other structures and facilities (and improvements to them that meet the criteria for capitalization) occupied by a NASA contractor and located on land not owned by NASA shall be included in the appropriate account(s) described in paragraphs (a), (b), and (c) of this section. A single improvement shall not be accomplished in increments of less than $5,000 in order to avoid adjustment to the fixed asset accounts.

(e) Plant equipment. This classification includes costs of personal property of a capital nature for use in manufacturing supplies or performing services, or for any administrative or general plan purpose, that--

(1) Has a unit cost of $5,000 or more;

(2) Has a useful life of 2 years or more; and

(3) Will not be consumed in an experiment.

It includes equipment, machine tools, furniture, vehicles, accessory or auxiliary items, and test equipment (but not special test equipment, special tooling, or space hardware as defined in paragraphs (f), (g), and (i)).

(f) Special tooling. This classification includes the cost of jigs, dies, fixtures, molds, patterns, taps, gauges, other equipment and manufacturing aids, all components of these items, and replacement of these items, that are of such a specialized nature that, without substantial modification or alteration, their use is limited to the development or production of particular supplies or parts thereof or to the performance of particular services. It does not include the cost of material, special test equipment, facilities (except foundations and similar improvements necessary for installing special tooling), general or special machine tools, or similar capital items.

(g) Special test equipment. This classification includes costs of either single or multipurpose integrated test units engineered, designed, fabricated, or modified to accomplish special purpose testing in performing a contract; items or assemblies of equipment, including standard or general purpose items or components, that are interconnected and interdependent so as to become a new functional entity for special testing purposes. It does not include costs of material, special tooling, facilities (except foundations and similar improvements necessary for installing special test equipment), and plant equipment items used for general plant testing purposes.

(h) Material. This classification includes costs of property that may be (1) incorporated into or attached to an end item to be delivered under a contract or (2) consumed or expended in performing a contract. It includes, but is not limited to, raw and processed material, parts, components, assemblies, and small tools and supplies that may be consumed in normal use in performing a contract. This classification does not include material that is part of space hardware work in process reported on NASA Form 1018, Schedule II, when required by the terms of the agreement, or material that has been issued from inventory and charged to a contract item. It is intended to include all Government-owned material that normally would be considered as materials inventory for balance-sheet purposes.

(i) Space hardware. This classification applies only to those items of space property and components specifically identified in the Annual List of Selected Items of Space Hardware (see 1845.7101-6). It includes the cost of personal property unique to NASA

aeronautical and space programs and not otherwise included in the classifications of property set forth in paragraphs (a) through (h) of this section. Space hardware is divided as follows for financial reporting purposes:

(1) Completed space hardware, systems, and subsystems (includes the cost, actual or estimated, of such items as aircraft, engines, space vehicles, satellites, spacecraft, and rockets, including components provided for prototypes, mock-ups, or fit checks, or for such other reasons as may be specified in the contract).

(2) Spare parts and components (includes the cost, actual or estimated, of deliverable spare parts and components employed as spare parts to be used for the purpose of emergency replacement, repair, or modification after the fabrication of space hardware). These types of property are commonly referred to as "logistics spares" or "test support spares" and do not include components utilized by the contractor that are not deliverable as spares and that are included as work in process.

(3) Space hardware work in process (includes the actual or estimated fabrication costs as of the date of the report of undelivered space hardware and associated systems, subsystems, spare parts, and components provided or acquired and charged to work in process pending incorporation into an end item). Such items are included in what is sometimes called production inventory and include programmed extra units to cover replacement during the fabrication process (production spares). Also included are progress payments to firm-fixed-price subcontractors for undelivered items.

1845.7101-2 Transfers of property.

So that NASA may properly control and account for contractor-held Government property (both Government-furnished and contractor-acquired), all transfers to another contract, contractor, NASA installation, or other Government agency shall be adequately documented. Such transfers shall be accomplished only through the NASA installation responsible for the contract from which the property is being transferred.

(a) Transfers by contractors.

(1) Approval and notification. The contractor must obtain the contracting officer's or designee's approval for transfers of property before shipment. Shipping documents shall specify the appropriate property classification, such as plant equipment, special test equipment, special tooling, or space hardware. Shipping contractors shall notify the cognizant property administrator of transfers of property by furnishing a copy of the shipping document. Shipping and receiving contractors shall promptly notify their respective NASA financial management offices when accountability for Government property reportable on NASA Form 1018 is transferred to, or received from, other contracts, contractors, NASA installations, or Government agencies. Copies of shipping/receiving documents will suffice in most instances.

(2) Documentation. The shipping contractor shall prepare an acceptable form of documentation such as DD Form 250, Material Inspection and Receiving Report; DD Form 1149, Requisition and Invoice/Shipping Document; or similar forms to cover movement of Government property to other Government agencies. Established procedures for the use of such forms shall be strictly followed. Each shipping document must contain contract numbers, shipping references, property classifications in which the items are recorded, unit prices, and any other appropriate identifying or descriptive data. Unit prices shall be obtained from records maintained pursuant to the provisions of FAR Part 45 and Part 1845 of this regulation.

(3) Reporting. In addition to the required shipping documentation, all transfers of reportable property occurring during the reporting period shall be reflected in column (b), Government-Furnished Additions, of NASA Form 1018 by the receiving contractor and in column (e), Disposals, of NASA Form 1018 by the shipping contractor.

(4) Reclassification. Reclassifications between property accounts shall be accomplished by the contractor holding the property at the time reclassification takes place. If property is transferred to another contract or contractor, the receiving contractor shall record it in the same property classification and amount appearing on the shipping document. (For example, when a contractor receives an item, by transfer from another contractor or NASA installation, that is identified on the shipping document as plant equipment but that the recipient intends to incorporate into special test equipment, the recipient shall first enter the item in the plant equipment account and subsequently reclassify it as special test equipment.) The reclassification of plant equipment, special tooling, special test equipment, or space hardware requires prior notification to the property administrator and approval of the contracting officer.

(5) Incomplete documentation. If contractors receive transfer documents having insufficient detail to properly record the transfer (e.g., omission of property classification, unit prices, etc.), they shall request the omitted data directly from the shipping contractor or through the property administrator as provided in FAR 45.505-2. Contractors may append a Government-furnished property list to the NASA Form 1018 report when unable to obtain the required data, provided that the list includes--

(i) A description of the property;

(ii) Quantity;

(iii) The shipping document reference;

(iv) The shipper's identity;

(v) The dates shipped or received;

(vi) The dates price data were requested and from whom (shipper or property administrator); and

(vii) The NASA Form 1018 line item (type/account) to be adjusted.

(b) Other transfers.

(1) Intracontractor transfers. Any transfer of Government property between contracts of a single contractor, whether administered by the same NASA installation or by different NASA installations, requires the same approval, notification, and documentation set forth in paragraph (a) above.

(2) Transfer to Government agencies other than NASA. Transfers of Government property to other Government agencies can be accomplished only through the NASA contracting officer and require the same approval, notification, and documentation set forth in paragraph (a) above.

(3) Recovered space hardware. Space hardware recovered after flight and transferred to a contractor for analysis, repair, refurbishment, or other purposes shall not be reported on subsequent NASArms 1018 as space hardware unless accountability has been transferred and the contractor is specifically directed to report the item.

1845.7101-3 Submission of reports.

(a) When the contract includes the Financial Reporting of Government-Owned/Contractor-Held Property clause, the contractor shall prepare a Report of

Government-Owned/Contractor-Held Property, NASA Form 1018, in accordance with these instructions and those on the NASA Form 1018.

(b) The contractor shall submit the original and three copies of NASA Form 1018 for the period ending September 30 in accordance with the clause not later than October 31 of each year, when reporting is required annually. The original report shall be submitted directly to the installation Financial Management Officer and three copies shall be sent concurrently to the cognizant property administrator. When more frequent reporting is required, the due date shall not be later than the last day of the month following the period being reported. The reporting requirement shall not be less frequently than annually; in all cases a report shall be required as of September 30.

(c) Negative reports shall be submitted when appropriate.

(d) The contractor shall submit a final report within 30 days after disposition of all property subject to reporting.

1845.7101-4 Report coverage.

(a) The NASA Form 1018 shall include the cost of all Government-owned property, except as noted in 1845.7101-5, in the possession of the contractor and first-tier subcontractors under each prime contract, using the prime contractor's records to the extent practicable when the subcontractor reporting is delayed.

(b) Government-owned material held in storage by the contractor and subcontractor shall be reported only when the balance on hand at the end of the reporting period is $75,000 or more for each government prime contract, including the amounts under subcontracts.

(c) Space hardware shall be reported only

if reporting is specifically requested in writing by the contracting officer, and reporting shall be limited to those items identified on the Annual List of Selected Items of Space Hardware (see Section 6).

1845.7101-5 Exclusions.

The following items shall not be reported on NASA Form 1018:

(a) Plant equipment having a unit cost of less than $5,000.

(b) Industrial facilities under construction or material held for use in construction of industrial facilities.

(c) Scrap or salvage.

(d) Items ordinarily reportable but furnished to the contractor for repair and return to NASA (except as required in 1845.7101-2(b)(3)).

(e) Work in process except as required in Schedule II, Space Hardware Reportable Items, of NASA Form 1018.

(f) Materials issued for consumption.

(g) Materials held in storage, if the cost at the close of the reporting period is less than $75,000.

(h) NASA shipping containers.

(i) Space hardware under firm-fixed-price contracts and subcontracts, unless progress payments are specified (see 1845.7101-1(i)(3)).

(j) Space property, except those items specifically identified as space hardware and required to be reported in accordance with 1845.7101-6 below.

(k) Installation property made available pursuant to the clause at 1852.245-71.

1845.7101-6 Space hardware reporting requirements.

(a) The contracting officer may require reporting on space hardware for cost reimbursement and incentive contracts and first-tier subcontracts if the estimated cost and fee of the contract exceeds $500,000 and any one or a combination of the individual reporting categories (i.e., completed space hardware, components and spare parts, and work in process) exceeds $75,000.

(b) The contracting officer shall specify the items of space hardware for reporting before June 1 of each year on the basis of the Annual List of Selected Items of Space Hardware, issued by the Director of Financial Management, NASA Headquarters (Code BF).

(c) Reporting shall become effective with the next report period beginning July 1, or as otherwise stipulated in the contract, and shall continue until all specified items of space hardware are delivered, the contract is terminated, or the item is removed from the List.

(d) The reports shall contain--

(1) The reportable items on hand, consisting of the cost and quantity of completed space hardware and the cost of related independent completed systems and subsystems;

(2) The total amount for completed spare parts and components relating to item (1) above; and

(3) The total amount for work in process of fabrication relating to the preceding items.

(e) Costs reported on Schedule II shall not be considered in reimbursing the contractor for work performed or for termination proceedings. Costs shall be computed in accordance with accepted accounting principles, be reasonably accurate, and be the product of any one, or a combination, of the following:

(1) Abstracts of cost data from the contractor's property or financial records.

(2) Computations based on engineering and financial data.

(3) Estimates based on NASA Form 533 reports.

(4) Formula procedures (e.g., using a 50-percent factor for work-in-process items, on the basis of updated Standard Form (SF) 1411 estimates or the contractor's approved estimating and pricing system).

(5) Other approved methods.

(f) If the same item is being fabricated for more than one project, contractors shall report by contract item the completed space hardware, related independent systems and subsystems, spare parts, and work in process.

(g) When a contract provides for two or more different and completed space property items, some of which are not included in the List, contractors shall report the actual cost of those items, if possible, or use a reasonable basis permitted by the contractor's records or a basis provided in paragraph (e) above.

(h) Contractors shall report the cost of items of space hardware, systems, and subsystems using their records that are part of the prescribed property or financial control system as provided in 1845.7101-3; however, fee, tooling, and other nonrecurring costs shall be excluded. Fabrication costs shall be based on the contractor's approved estimating and pricing or property control system and should include--

(1) Direct labor;

(2) Direct materials and purchased parts (costs of purchased items shall be consistent with the contractor's approved pricing methods);

(3) Other direct costs (e.g., computer costs, travel, and transportation);

(4) Overhead (a percentage factor or rate applied to the direct costs or other applicable base); and

(5) Costs of Government-furnished property applied (data available from the shipping document--e.g., DD Form 250, 1149, or similar form--or estimated if necessary).

1845.7101-7 Completed space hardware.

(a) Completed space hardware includes configurations of spacecraft, satellites, rockets, etc. (including integrated systems and subsystems) and completed, but not yet integrated, systems and subsystems held by the prime contractor and first-tier subcontractors.

(b) Items of space hardware covered in paragraph (a) above that are completed and deliverable shall not be broken down into systems and subsystems for the purpose of reporting.

(c) The contractor shall redetermine the cost of items returned for modification or rehabilitation to include the appropriate amount of original costs plus any improvements. Costs to modify single shelf items to perform specific tests shall not be included. Contractors shall discontinue reporting space hardware that has been launched, delivered to another contractor or to the Government, or disposed of as authorizby the contracting officer.

1845.7101-8 Completed spare parts and components for space hardware.

(a) In reporting completed spare parts and component items for space hardware, contractors shall include as a single amount for each contract item (as provided in 1845.7101-6(d)) the aggregate cost of those spares and components (see 1845.7101-1(i)(2)) related to the selected list of completed items.

(b) Standard items available from commercial or other sources and held on an inventory basis until requisitioned for use are excluded here but shall be included in "Material" on NASA Form 1018. Contractors shall not include spares or components reported in Schedule II, Space Hardware Reportable Items, of NASA Form 1018 in "Material" on page 1, NASA Form 1018.

1845.7101-9 Space hardware work in process.

(a) Space hardware work in process consists of the total costs by contract item as provided in 1845.7101-6(d). The contractor shall compute the costs--as of the date of the report of those unfinished space hardware units pertaining to the selected list of completed items to be reported--as provided in 1845.7101-6(e). This computation shall include the costs of associated systems, subsystems, and spare parts and components furnished or acquired and charged to work in process pending incorporation into a finished item. These types of items comprise what is sometimes called production inventory and include programmed extra units to cover replacement during the fabrication process (production spares). Also included are end items on which the prime contractor or a subcontractor has begun work.

(b) Unless accountability has been transferred to the contractor, the contractor normally shall not include space hardware spare parts and components returned for repair or modification in the in-process inventory (or spare parts and components inventory). Units or lots that are incomplete for any reason, such as obsolescence or faulty fabrication, or by direction of the contracting officer, shall not be reported in NASA Form 1018, Schedule II.

(c) Historical costs on NASA Form 533, Contractor Financial Management Reports, may be used (see 1845.7101-6(e)) if they apply to the selected items to be reported and are consistent with the costing of completed items. When costs are taken from the NASA Form 533, the cost of Government-furnished property shall be added (where applicable) or listed as provided in 1845.7101-2(a)(5). The costs shall then be adjusted for completed items and spare parts, etc., inventoried elsewhere or shipped to and accepted by a third party.

1845.7101-10 Contractor's privileged financial and business information.

If a transfer of property between contractors will involve disclosing costs of a proprietary nature, the contractor shall furnish unit prices only on those copies of the shipping documents that are sent to the shipping and receiving NASA installations. Transfer of the property to the receiving contractor shall be on a no-cost basis.

1845.7102 Instructions for preparing DD Form 1342.

The instructions in this section shall be used in the preparation of DD Form 1342, DOD Property Record, to report newly acquired equipment, items not previously reported, major changes in the data initially submitted, or equipment no longer required for or actively being used in the pursuit of NASA programs or projects. Use of DD Form 1342 is not mandatory if the same information is provided in an alternative format. Only one initial report is required. In-use items shall be reported initially to the NASA Equipment Management System (NEMS) through the contracting officer (see 1845.505-670) by use of this form by checking "Active" and "Initial" in Block 1. Identify idle items being initially reported by checking "Idle" and "Initial" in Block 1.

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

Block 2. Enter the Julian date of preparation of the form. The first character is the last digit of the current calendar year, and the next three characters are 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. Not applicable.

Block 5. Enter the first four digits of the National Stock Number, if known.

Block 6. Indicate in dollars (omit any symbols, decimal points, commas, etc.) the acquisition cost used for property accounting purposes. This acquisition cost is the price of the basic item lus any accessories and auxilliary equipment procured and delivered with it. If the initial acquisition cost data are not available, use an estimated 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 that will achieve conformity of prices for like items of equipment.

Block 7. Not applicable.

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.

Blocks 9-13. Not applicable.

Block 14. Enter the name of the manufacturer of the equipment being reported. Do not use a distributor's or vendor's name. Enter "Unknown" when the manufacturer is not known.

Block 15. This is a five-digit numerical code identifying the manufacturer, obtained from 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 is next in preference. When the manufacturer does not assign a model, style, or catalog number, enter "None".

b. When unable to locate a model number, refer to the 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 equipment. If a serial number is not assigned to the item, enter "None".

Blocks 18

-21 Not applicable.

Block 22. Enter Certificate of Non-availability number from Block 41, DD Form 1419 or other screening document.

Block 23. Not applicable.

Block 24. Not applicable.

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, enter the procurement contract number.

Block 26. Enter the complete description of the item.

Block 27. Not applicable.

Block 28. Enter the NASA installation or company name, street address, city, state, and zip code of the physical location of the equipment. If the physical 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, enter "No street address".

Blocks 28a

and 29. Not applicable.

Section II-Inspection Record.

Not applicable, except for Block 52, which should be completed when reporting (in accordance with 1845.505-670) that an item is no longer required for or actively being used in pursuit of NASA programs or projects.

Section III-Remarks. Not applicable.

Section IV-Disposition Record. Not applicable.

Section V-Validation Record. Not applicable.

1845.7103 Instructions for preparing DD Form 1419.

(a) The contractor shall enter the essential information covering Sections I and II before submission of DD Form 1419, DOD Industrial Plant Equipment Requisition, to the NEMS Coordinator. The NEMS Coordinator shall review each submission for completeness and authenticity. Incomplete or invalid requests shall be returned for correction. The original and two copies of the approved DD Form 1419, or equivalent format, may be forwarded to Defense Industrial Plant Equipment Center (DIPEC) for screening of inventories. Upon completion of the screening process, DIPEC will annotate the results of the screening in Section IV or V. Certification of nonavailability when cited in Section V is evidence that screening has been accomplished by NASA/DIPEC. DIPEC will return the original and one copy of the request to the NEMS Coordinator of the cognizant NASA installation indicated in Section III.

(b) When a suitable item is allocated in Section IV, inspection of the equipment is recommended. Notification of acceptance or rejection of the item offered must reach NASA/DIPEC within 30 days after allocation. A copy of the DD Form 1419, or equivalent format, will serve as the clearance document to inspect the equipment at the storage site. Note acceptance or rejection of the item, without inspection or after inspection in Section VI. If the item is acceptable, execute Section VII. Cite the NASA appropriation symbol where applicable in Section VII. In either instance, acceptance or rejection, the NEMS Coordinator shall return the original of the DD Form 1419, or equivalent format, to DIPEC when items have been offered by DIPEC.

(c) The NEMS Coordinator shall assign a requisition number to each DD Form 1419, or equivalent format request. If DIPEC will be screened, the NEMS Coordinator shall code each number assigned for automatic data processing by DIPEC. The NEMS Coordinator shall also identify the requiring installation and provide a serial number and date of submission for subsequent reference. The NEMS Coordinator shall begin the requisition number with the appropriate installation FEDSTRIP/MILSTRIP Activity Address Code.

(d) Next will be a four-digit entry comprised of the last digit of the current calendar year and the Julian date of the year. For instance, February 4, 1969, would be written as 9035. The last entry will be a four-digit number from 0001 to 9999 to sequentially number requisition forms prepared on the same date. For example, the ninth requisition prepared on February 1, 1969, would be 9032-0009, preceded by the FEDSTRIP/ MILSTRIP Activity Address Code. When submitting subsequent DD Forms 1419, or equivalent format, related to the item requested, the NEMS Coordinator shall use the same requisition number and add the alpha code to the end of the requisition number to indicate a second or third action on the basic request. Alpha "A" would indicate a second request, "B" a third, etc. In this manner, all actions, correspondence, etc., relative to a given request can be identified at all levels of processing by the use of the requisition number.

(e) Detailed directions for completing the DD Form 1419 follow. When DIPEC listed equipment is not being requested, the contractor may elect to provide the required data in an equivalent format, which complies with these directions.

Section I

Item Description. To ensure adequate screening, the item description must be complete. For single-purpose equipment or general-purpose equipment with special features, requests must contain detailed descriptive data as to size and capacities, setting forth special operating features or particular operations required to be performed by the item.

Block 1. Not applicable.

Block 2. Enter the manufacturer's name and Federal Supply Code for manufacturer (Cataloging Handbook H4-1) of the item requested.

Block 2a. Enter the manufacturer's model, style, or catalog number assigned to the equipment being requisitioned. Always use the model number, if available. The style number is the next preference. Enter "None" in this block if the model, style or catalog number is not known.

Block 3. Enter the four-digit Federal Supply Class (FSC).

Block 4. Not applicable.

Block 5. Self-explanatory.

Block 6. Place an "X" in the applicable block to indicate whether you desire to physically inspect the item before acceptance.

Block 7. Self-explanatory.

Block 8. Enter the complete description of the item. Continue the description in Block 51 if additional space is needed.

Section II.

Block 9. Enter the contractor's name, street address, city, state, and zip code from which the requisition is being initiated. The address should be the one to which inquiries of a technical nature will be referred. Specify the telephone number of an individual who will respond to inquiries concerning the request.

Blocks 10

and 10a. Enter the contract number or document number and the date of the document authorizing acquisition of the items shown in Section I. This normally will be a facility contract number. Otherwise, it should be a purchase order or procurement request number.

Block 11. Not applicable.

Block 12. Disregard the "Military" block. Show the NASA contract number and program for which the item is to be used.

Block 13. Enter the specific function to be performed by the equipment. When applicable, enter the tolerances, capacities, specifications, etc., that the equipment must satisfy.

Block 14. Determine The date the item must be installed to meet production requirements. From this date deduct the estimated number of days required for installation. Enter the adjusted date in this block.

Block 15. Enter the date by which NASA must issue a Certificate of Nonavailability. Determine the date by subtracting the procurement lead time and 30 days administive lead time from the date shown in Block 14.

Block 16. Enter the Defense Priority and Allocations System (DPAS) rating assigned to the contract or anticipated purchase order, if applicable.

Block 17. Place an "X" in the appropriate box. If for replacement, identify the item being replaced and the reason for replacement.

Block 18. Place an "X" in the appropriate box. Show the appropriation symbol if the answer is "yes."

Block 19. Not applicable.

Blocks 20

and 21. In addition to the official's title and signature, type the signing official's name, office symbol or name, and telephone number plus extension. The company representative who prepares and submits the requirement to the cognizant NASA certifying office should sign.

Block 22. Self-explanatory.

Block 23. The contracting officer of the NASA installation having jurisdiction over the contract shall certify the need for the item. However, the NEMS Coordinator may certify the need for NASA in-house requirements.

Block 23a. Not applicable.

Block 23b. Enter the name and address of the installation certifying the requirement.

Block 23c. This block is for signature of the property administrator or contracting officer at plant level.

Block 23d. Self-explanatory.

Block 23e. This block is for the signature of NASA installation official certifying the requirement.

Block 23f. Self-explanatory.

Section III.

This section is for the NEMS Coordinator's certification of the requirement to DIPEC, when applicable.

Blocks 24

-27. Self-explanatory.

Section IV.

To be completed by DIPEC (a copy is used for admittance to storage site for inspection of property).

Section V.

DIPEC or the NEMS Coordinator shall complete this section if equipment is unavailable.

Section VI.

Blocks 42- The requesting official signing Section II, Block 20, shall

45 complete Section VI and shall list reasons for non-acceptance in Section VIII, Remarks, or on a separate document attached to the DD Form 1419.

Section VII.

Block 46. Enter the complete name,street address, city, state, and zip code of the contractor or installation to which the item is to be shipped. Indicate railhead and truck delivery points when other than the address named.

Blocks 47

and 48. Self-explanatory.

Blocks 49

a and b. Ensure that NASA appropriation symbols are included with the work order number.

Block 49c Enter the NASA appropriation symbol chargeable for any special work ordered (e.g., rebuild, repair, or accessory replacement).

Block 49d Enter the NASA installation and office symbol for the organization that will make payment for transportation and packing, crating, and handling.

Block 50. Self-explanatory.

Section VIII.

Block 51. This block can be used to expand or explain entries made in Blocks 1 through 50. When requisitioning equipment from excess listings, identify the issuing office, list number, date, control number, and item number assigned to the equipment.