**NPR 4200.1F**

**Effective Date: November 14, 2006**

**Expiration Date: November 14, 2011**

## Responsible Office: Logistics Management Division

## 

## NASA Equipment Management Procedural Requirements

## 

**TABLE OF CONTENTS**

**PREFACE**

P.1 PURPOSE\
P.2 APPLICABILITY\
P.3 DEVIATION FROM THIS NPR

P.4 AUTHORITY\
P.5 REFERENCE\
P.6 CANCELLATION

**CHAPTER 1. General Information**

1.1 General Information for Equipment Management\
1.2 Equipment Management Responsibilities\
1.3 Support for Special Programs

**CHAPTER 2. Equipment Acquisition**

2.1 Equipment Acquisition

**CHAPTER 3. Equipment Administrative Procedures and Use**

3.1 Equipment Control\
3.2 Controlled-Equipment Accountability\
3.3 Equipment Loans\
3.4 Loan of Equipment to Government and Non-Government Organizations

3.5 Removal and Use of Equipment by Employees

3.6 Equipment Use

**CHAPTER 4. Equipment Physical Inventories**

4.1 Inventory Scheduling and Personnel\
4.2 Inventory Procedures\
4.3 Inventory Reports and Files

**CHAPTER 5. SELF-ASSESSMENT**

5.1 Self-Assessments and Headquarters Site Visits

**APPENDICES**

Appendix A. Definition of Terms

Appendix B. Equipment Type Accounts

Appendix C. Agency (NASA) Minimum-Standard, Sensitive-Items List

Appendix D. NASA Equipment Management System (NEMS)

Appendix E. NEMS Mandatory Data Elements in Detail

Appendix F. NEMS Data Fields

Appendix G. NEMS Status Codes for Equipment

Appendix H. Survey of Lost, Damaged, or Destroyed Equipment

PREFACE

**P.1. PURPOSE**

This NASA Procedures and Requirements (NPR) 4200.1, Equipment Management
Procedural Requirements, supports the policy outlined in the NASA Policy
Directive (NPD) 4200.1, Equipment Management. It offers procedures for
NASA personnel to use for the acquisition, management, responsibility,
points of contact, and use of NASA-owned equipment. Consistent with the
requirements contained within this NPR, Centers are encouraged to
customize their equipment management procedures to meet their local
requirements. The Federal Acquisition Regulations (FAR), Part 45; the
NASA FAR Supplement, Part 1845; and the terms and conditions of
individual contracts establish the policies and procedures for
contractor accountable, NASA-owned equipment and for Center-accountable,
NASA-owned equipment. The Installation-Accountable Government Property
(IAGP) clause and NASA FAR Supplement 1852.245.71 also apply. Equipment
acquired and/or furnished under NASA grants and cooperative agreements
is subject to the requirements of NPR 5800.1, NASA Grant and Cooperative
Agreement Handbook.

**P.2. APPLICABILITY**

This NPR applies to all equipment for which NASA is accountable at NASA
Headquarters and NASA installations. When the provisions of this
requirement conflict with provisions of international agreements
covering property in foreign countries, or the FAR or NASA FAR
Supplement concerning contractor-accountable equipment, the provisions
of these latter documents prevail.

**P.3. DEVIATION FROM THIS NPR**

A deviation is considered to be any of the following:

a\. Use of a form different from a Standard Form (SF) or NASA Form (NF)
prescribed by this procedural requirement.

b\. Alteration of an SF or NF, except as authorized by this NPR.

c\. Any policy, procedure, method, or practice inconsistent with this
NPR.

Deviations from this NPR shall be authorized only when special
circumstances make such deviations clearly in the best interests of the
Government. Only the Director, Logistics Management Division (DLMD) at
NASA Headquarters, is authorized to approve such deviations.

**P.4. AUTHORITY**

a\. [42 U.S.C. 2473 (C) (1)](../../../../../../../../A:/TBA), Section
203(c)(1) of the National Aeronautics and Space Act of 1958, as amended.

b\. [40 U.S.C. 471](../../../../../../../../A:/TBA) et seq., the Federal
Property and Administrative Services Act of l949, as amended.

c\. [41 CFR Chapter 101, Subchapter E, Federal Property Management
Regulations](../../../../../../../../A:/TBA), (FPMR).

d\. [41 CFR Chapter](../../../../../../../../A:/TBA) 102, Subchapter C,
Federal Management Regulation, (FMR).

[e. FAR Part 45, 48 CFR Parts 45 and 52, Government
Property.](../../../../../../../../A:/TBA)

[f. NASA FAR Supplement Parts 1845 and 1852, 48 CFR Parts 1845 and 1852,
Government Property.](../../../../../../../../A:/TBA)

[**P.5. REFERENCES**](../../../../../../../../A:/TBA)

a\. NASA Financial Management Requirement Volume 6, Chapter 4,
http://www.hq.nasa.gov/cfo/internal/fmr/ Accounting, Property, Plant and
Equipment.

[b. NPD 1387.1, NASA Exhibits Program.](http://www.hq.nasa.gov/fmm)

[c. NPD 4200.1, Equipment Management.](http://www.hq.nasa.gov/fmm)

[d. NPD 4300.1, NASA Personal Property Disposal
Policy.](http://www.hq.nasa.gov/fmm)

[e. NPR 8621.1, NASA Procedural Requirements for Mishap Reporting,
Investigating, and Recordkeeping Policy.](http://www.hq.nasa.gov/fmm)

[f. NPD 9800.1, NASA Office of Inspector General
Programs.](http://www.hq.nasa.gov/fmm)

[g. NPR 3752.1, Disciplinary and Adverse
Actions.](http://www.hq.nasa.gov/fmm)

[h. NPR 4200.2, Equipment Management Manual for Property
Custodians.](http://www.hq.nasa.gov/fmm)

[i. NPR 4300.1, NASA Personal Property Disposal Procedural
Requirements.](http://www.hq.nasa.gov/fmm)

[j. NPR 4310.1, Identification and Disposition of NASA
Artifacts.](http://www.hq.nasa.gov/fmm)

[k. NPR 5800.1, Grant and Cooperative Agreement
Handbook.](http://www.hq.nasa.gov/fmm)

[l. NPR 7900.3, Aircraft Operations
Management.](http://www.hq.nasa.gov/fmm)

[m. NPR 8621.1, NASA Procedures and Guidelines for Mishap Reporting,
Investigating, and Recordkeeping.](http://www.hq.nasa.gov/fmm)

[n. NPR 8715.3, NASA Safety Manual](http://www.hq.nasa.gov/fmm).

[**P.6. CANCELLATION**](http://www.hq.nasa.gov/fmm)

[NPR 4200.1E, Equipment Management Manual, dated July
1999.](http://www.hq.nasa.gov/fmm)

Charles H. Scales\
Associate Administrator for

Institutions and Management

**CHAPTER 1: General Information**

**1.1 General Information for Equipment Management**

1.1.1 Purpose

This chapter sets forth comprehensive requirements with respect to the
acquisition, documentation, utilization, maintenance, inventory, and
disposal of NASA-owned equipment.

1.1.2 General

1.1.2.1 Government equipment belongs to the Government and is to be used
exclusively for the conduct of official business. Appropriate
accountability measures will be used to move such equipment from one
use, user, or location to another, including movement among offices,
functions, programs, contractors, and Centers.

1.1.2.2 NASA Division directors (or equivalent organization heads),
through their Center Directors, are the primary officials responsible
for equipment assigned to their organizations. This responsibility
includes ensuring that the equipment is maintained in a serviceable
condition and that its use is in accordance with Federal regulations and
NASA Procedures and Guidelines.

1.1.2.3 All equipment acquired by NASA, including that held under lease
or loan, will be managed in accordance with this NPR.

1.1.2.4 All NASA organizations will use the NASA Equipment Management
System (NEMS), described in NPD 4200.1, to identify, account for, and
control Center-held equipment. The system requires accurate and complete
item description, location, and condition to permit cost-effective
Agency-wide control, equipment accountability, and reuse consideration
wherever equipment is located.

1.1.3 Equipment Acquisition

1.1.3.1 NASA will acquire only that equipment necessary for the
performance of Agency requirements. Each Center should evaluate
alternative methods such as utilizing existing equipment, leasing,
borrowing, or using contractor-owned equipment before the initiation of
a new procurement or fabrication.

1.1.3.2 Prior to acquisition of equipment valued at \$25,000 or more,
existing equipment resources will be screened in accordance with NPR
4300.1, NASA Personal Property Disposal Procedural Requirements.
Equipment valued at less than \$25,000 may be screened at the option of
the purchaser or equipment management organization, on a case-by-case
basis.

1.1.3.3 Equipment nomenclature and description provided by the requiring
office will be of sufficient detail to facilitate screening and
subsequent identification and documentation consistent with the
provisions of this NPR.

1.1.4 Recordkeeping

1.1.4.1 Records describing NASA equipment and actions affecting this
equipment will be maintained as prescribed in this NPR, other applicable
regulations, and the current Financial Management Manual, soon to be
replaced by the Financial Management Requirement (FMR).

1.1.5 Utilization

1.1.5.1 The primary official identified in paragraph 1.1.2.2 shall
perform annual walk-through inspections to ensure that equipment
assigned to the organization is classified in the appropriate use
status. Equipment no longer required for the performance of a specific
NASA requirement shall be excessed by using proper documentation and
forwarded to the Property Disposal Officer.

1.1.5.2 All equipment reportable to NEMS will be assigned to a user, and
that user's name will be entered into the equipment record.

1.1.6 Inventory

1.1.6.1 NASA-held equipment will be inventoried pursuant to the
requirements set forth in Chapter 4 of this NPR.

1.1.7 Disposal

1.1.7.1 Each Center shall maintain an effective program for timely
disposal of equipment no longer required by NASA. Disposal will be
accomplished in accordance with the requirements set forth in NPR
4300.1, NASA Personal Property Disposal Procedural Requirements.

1.1.8 Equipment Loans

1.1.8.1 NASA equipment and materials may be made available to
organizations, private individuals, corporations, or other entities,
provided the loan of such equipment is in the public interest and meets
the conditions described in NPD 4200.1. Loans to NASA and onsite
contractor employees will comply with this NPR. All loans will be
documented and managed by the Center equipment management organization.

1.1.8.2 Government-owned equipment furnished under contracts or grants
will be managed under the terms of the appropriate instrument and
subject to the requirements of the FAR, NASA FAR Supplement, and NPR
5800.1, Grant and Cooperative Agreement Handbook.

1.1.8.3 Equipment loaned solely for use as a display or for use in an
exhibit will be provided under the provisions of NPD 1387.1, NASA
Exhibits Program. Controlled equipment, used for display or exhibit
purposes, will remain in the NEMS database, accountable to the
responsible property custodian and/or assigned users.

1.1.9 Equipment Acquired with Reimbursable Funds from Other Federal
Agencies

1.1.9.1 All equipment acquired with reimbursable funds from another
Federal agency will be controlled and accounted for by NASA, as
prescribed in this NPR.

1.1.10 Equipment Transfer to or from other Federal agencies.

1.1.10.1 The National Aeronautics and Space Act of 1958, as amended,
Section 203 (c)(6), provides that \"Each department and agency of the
Federal Government shall cooperate fully with the Administration (NASA)
in making its services, equipment, personnel, and facilities available
to the Administration, and any such department or agency is authorized,
notwithstanding any other provision of law, to transfer to or to receive
from the Administration, without reimbursement, aeronautical and space
vehicles, and supplies and equipment other than administrative supplies
or equipment.\" Transfers of equipment to or from other Federal agencies
under this authority require the approval of the Center Director and
coordination with the Center Supply and Equipment Management Officer
(SEMO).

1.1.10.2 Transfer of excess personal property requires approval by the
Center Property Disposal Officer and coordination with the General
Services Administration, as described in NPR 4300.1.

1.1.11 Equipment on Lease or Loan to NASA.

1.1.11.1 Equipment on lease or loan to NASA will be identified and
tracked by the Center equipment management organization.

**1.2 Equipment Management Responsibilities**

1.2.1 Purpose

1.2.1.1 This part sets forth the responsibilities of appropriate
personnel at NASA Headquarters and each NASA Center for oversight and
management of NASA\'s equipment management program.

1.2.2 Responsibility

1.2.2.1 The Assistant Administrator for the Office of Infrastructure and
Administration is responsible for establishing equipment management
policies and requirements for assessing the effectiveness of
implementation. The Director of each Center will appoint a Supply and
Equipment Management Officer (SEMO) to implement an effective equipment
management program.

1.2.2.2 Each Center will develop appropriate local procedures, for all
operating locations, that conform to the requirements of NPD 4200.1 and
this NPR. Any deviations from NPD 4200.1 or this NPR shall be approved
by the Director, Logistics Management Division (DLMD), NASA
Headquarters.

1.2.3 Director, Logistics Management Division (DLMD), NASA Headquarters.
The DLMD will:

a\. Establish policies for and provide requirements to the SEMOs.

b\. Provide direction for and ensure allocation of necessary resources
for the operation and maintenance of the NEMS and related systems and
procedures.

c\. Review and initiate action to issue, amend, or cancel NASA
directives that govern the equipment management activities of the
Agency.

d\. Assist NASA Centers in the development and operation of internal
processes, procedures, and systems to ensure their compatibility with
Agency programs.

e\. Establish necessary Agency performance measures and reports on the
overall implementation of equipment management programs, and report
periodically on that implementation to senior Center and NASA
management.

f\. Conduct reviews and assessments of equipment management activities,
and report significant findings to senior Center and NASA management.

g\. Define training requirements for all personnel in the property
field, both civil servant and contractor, to ensure properly trained
property personnel across the Agency.

1.2.4 SEMO. The SEMO at each Center shall:

1.2.4.1 Provide functional management, leadership and necessary
resources to ensure the implementation of an effective equipment
management program.

1.2.4.2 Establish a process to ensure that all personnel associated with
the utilization of Government equipment receive documented, up-to-date
property users training (with special emphasis on the consequences of
poor stewardship and negligent use).

1.2.4.3 Ensure that equipment personnel are performing assigned property
functions by prescribing appropriate procedures for user management of
equipment that is consistent with the provisions of this NPR.

1.2.4.4 Ensure that department heads of organizations report quarterly
to the SEMO regarding user concerns and relative property issues. This
would include the results of walk-through inspections and the use and
effectiveness of equipment pools, if applicable.

1.2.4.5 Ensure that all equipment loans, including those that support
special programs, are properly administered.

1.2.4.6 Provide requirements to the division directors and end users in
reporting all controlled property to the logistics organization for
proper control and use, including direct deliveries.

1.2.4.7 Ensure that organizations and users are aware of the requirement
to identify inactive equipment and ensure its reuse or disposal, as
appropriate.

1.2.4.8 Ensure compliance with the procedures regarding loss, damage, or
destruction of property and ensure that the functions of the Property
Survey Board are being administered (See 1.2.16).

1.2.4.9 Implement the necessary equipment control procedures to ensure
that the Center equipment management processes and procedures adequately
provide for the care, management, and protection of Center-held
equipment.

1.2.4.10 Provide for the establishment, operation, and maintenance of
the NEMS database; appoint a NEMS Equipment Manager; and approve and
periodically evaluate NEMS implementation of policies and procedures by
reviewing the following:

a\. Record maintenance controls established for NEMS at the Center.

b\. Items designated for control as sensitive equipment.

c\. Controls established and maintained for sensitive items of
equipment.

d\. Records of controlled-equipment transactions of the Center and its
contractors with respect to NEMS Central Data Base (CDB) updates.

e\. Property management areas and property custodian assignments and
training.

f\. Inventory documentation, follow-up actions, and results.

1.2.4.11 Approve or assign the NEMS Equipment Manager or other designee
to approve all NEMS global changes.

1.2.4.12 Designate, in writing, the Center inventory team and inventory
process.

1.2.4.13 Ensure that prescribed physical inventories of controlled
equipment are taken and adjustments to property and financial records
are accomplished and coordinated in accordance with Center policy.

1.2.4.14 Ensure that physical inventories are conducted when a new
property custodian is assigned and direct special inventories, as
appropriate.

1.2.4.15 Ensure that the Property Survey Officer and Property Survey
Board have been appointed and are fully informed of their duties (See
paragraphs 1.2.15 - 1.2.16).

1.2.4.16 Establish a transaction cutoff date with the Center Deputy
Chief Financial officer (Center Finance Property Accountant) and review
and approve, with the Center Finance Property Accountant, the monthly
reconciliation of the NEMS equipment records and the finance equipment
type accounts (1551 through 1563).

1.2.4.17 Actively enforce the Center\'s policy concerning the
disposition of property.

1.2.4.18 Identify items which shall be designated for control as
sensitive equipment.

1.2.4.19 Ensure that whenever there is a transfer of assets from one
entity to another, the receiver shall retain the asset classification
(Federal Supply Class) as designated by the losing entity. Any
reclassification shall be approved by the SEMO, recorded in NEMS, (after
the transfer is initially recorded), and coordinated with the financial
organization of the receiver.

1.2.4.20 Designate and monitor Center receiving zones to properly track
incoming equipment.

1.2.5 Division director (Note: when used in this NPR, division director
includes chief or equivalent organization head or designee). The
division director is the principal official in the NASA Equipment
Management Program responsible for all equipment, controlled and
noncontrolled, assigned to the organization and in use by personnel
within that organization, including all aspects of equipment condition
and use. The division director shall:

1.2.5.1 Appoint appropriate property custodians and ensure that
appointees have proper oversight and knowledge of the equipment used
within their areas.

1.2.5.2 Ensure that equipment removed from the Center is in full
compliance with the Center policies and procedures.

1.2.5.3 Ensure that all equipment loans are documented and tracked and
are essential to accomplish assigned projects.

1.2.5.4 Ensure that loss, damage, or destruction of equipment is
promptly reported, investigated, and reviewed to prevent recurrences and
take corrective actions as recommended by the Property Survey Officer or
Board.

1.2.6 Property Custodians

1.2.6.1 Property custodians are designated for each property management
area or program area by the head of the organization, usually the
division director or chief, with the approval of the SEMO.

1.2.6.2 Full-time property custodians may be appointed by the SEMO.

1.2.6.3 Property custodian responsibilities and procedures are defined
in NPR 4200.2, NASA Equipment Management Manual for Property Custodians.

1.2.7 NASA Employees (users of Government property). Employees have a
responsibility, as the users of Government property, to protect and
conserve all equipment, supplies, and other property and materials
entrusted to them. It is the user\'s responsibility to follow all rules
and regulations associated with the property in their control.
Additional employee responsibilities include the following:

a\. Notifying the responsible property custodian and supervisor if
equipment cannot be located. If theft of Government property is
suspected, the property custodian or supervisor will notify the Center
Security Officer and Office of Inspector General immediately.

b\. Ensuring that Government equipment is used only (for its intended
purpose) in pursuit of approved NASA programs and projects.

c\. Identifying and reporting to their respective property custodians on
the status of equipment not being actively used in pursuit of approved
NASA programs and projects.

d\. Ensuring that equipment is turned in to the responsible property
custodian when no longer needed. Under no circumstances will an employee
personally dispose of Government equipment.

e\. Retaining stewardship of all items, controlled and noncontrolled,
assigned to them and ensuring that the property custodian is immediately
informed when he or she is no longer the primary user.

f\. Notifying responsible property custodians of all activity/movement
associated with the user\'s assigned equipment.

g\. Notifying responsible property custodian of any modification to the
equipment that may change the value of the equipment or the work in
process.

1.2.8 Center NEMS Equipment Manager. The Center NEMS Equipment Manager
is responsible for ensuring Center compliance with the Federal Property
Management Regulations to maximize equipment utilization and to minimize
procurement of new equipment. The Center NEMS Equipment Manager is
appointed by the Center\'s SEMO and serves as the key interface among
the equipment-using organizations and the property custodians and
equipment users. The Center NEMS Equipment Manager is primarily
responsible for the following:

a\. Establishing appropriate controls, maintaining adequate records, and
overseeing cataloging functions for all equipment at the Center.

b\. Ensuring that NEMS reports are periodically reviewed and revised as
needed and produced as scheduled.

c\. Controlling approved global changes to the NEMS database.

d\. Controlling record data changes. A record data change will change
one or more data elements in a single record. The Center NEMS Equipment
Manager is responsible for ensuring proper use of standard codes in
establishing and maintaining the NEMS database and for processing and
maintaining NEMS data.

e\. Ensuring the designation of property management areas and the
appointment and training of property custodians.

f\. Providing property custodians with transaction documents and a
summary report for controlled equipment items in their assigned property
management area.

g\. Reviewing recordkeeping procedures and monitoring the performance of
property custodians.

h\. Developing the cyclic and sensitive item equipment inventory
schedules.

i\. Reconciling and adjusting equipment records as a result of inventory
actions.

j\. Ensuring that the equipment record adjustments resulting from
physical inventories and other actions are made available to the SEMO
for review.

k\. Documenting inventory results for submittal by the SEMO to division
directors and property custodians, also ensuring that written inventory
summary reports are provided to other appropriate Center personnel and
are properly maintained.

l\. Conducting a semiannual reconciliation of NEMS equipment records
with the equipment-type accounts maintained by the Financial Management
Officer. Differences will be mutually resolved, and the ending balance
of Center-held capital equipment shall be established for reporting
purposes. The reconciliation shall be jointly approved by the SEMO and
the Financial Management Officer.

m\. Processing item and value adjustments for NEMS transactions so that
the net results are posted against the Equipment Module of the Logistics
Information Management System (LIMS) by March 31 and September 30 of
each fiscal year.

1.2.9 NASA Contractors and Contracting Officers

1.2.9.1 NASA contractors are responsible for equipment and other
property as set forth in the FAR, the NASA FAR Supplement, and the
applicable contract.

1.2.9.2 Contracting officers are responsible for ensuring that
Government-furnished equipment or contractor-acquired equipment is
managed pursuant to the provisions of the contract. In authorizing
contractors\' purchase or use of Government equipment, contracting
officers will ensure the following:

a\. Requirements are verified by the appropriate project office. The
Contracting Officer's written consent is obtained pursuant to FAR
52.244-2.

b\. Written determinations are executed by the appropriate Center
official pursuant to FAR 45.302-1(a) (4).

c\. Existing Government assets are screened pursuant to NASA FAR
Supplement 1852.245-70.

d\. NASA requirements for property management by contractors are
included in the delegation instructions when property administration is
delegated to other agencies.

e\. Contractors shall comply with the provisions herein as they pertain
to contractor employee loans.

1.2.10 Industrial Property Officer

The Industrial Property Officer is the individual designated by the
Center Director to manage and coordinate Center property matters among
the various contracting officers, technical officials, contractor
officials, delegated property administrators, and plant clearance
officers. The responsibilities of the Industrial Property Officer, under
the Contract Property Management Program, are outlined in NASA FAR
Supplement 1845.7205. Generally, the Industrial Property Officer is
responsible for the Contract Property Management function. This function
includes the performance of required property administration and plant
clearance, when required, but is not delegated to the Department of
Defense.

1.2.11 Center Equipment Management Personnel, as designated by the NEMS
Equipment Manager and approved by the SEMO, are further responsible for
the following:

a\. Identifying, categorizing, classifying, and coding all existing,
newly acquired Center-held equipment and contractor-held equipment.
Before an equipment record is created, the designated NEMS controller
shall review and record the valid manufacturer, model number, and
standard item name by major noun with appropriate modifiers.

b\. Reviewing the NASA Form 1602, NEMS Transaction Documents, submitted
by property custodians for equipment change and delete transactions,
ensuring that appropriate supporting documentation is attached.

c\. Assisting property custodians and equipment users in the proper
procedures and documentation of the following equipment actions: loans,
transfers, turn-ins, excess, repairs, storage, replacement, modification
or cannibalization, fabrication, found on station, and survey reports
for lost, damaged, or destroyed equipment.

d\. Ensuring proper functioning of NEMS control operations (located
within the Center\'s equipment management organization). Standard
operating procedures include entering the final transaction data on the
receiving report and proofing the document for completeness. The final
transaction information is then keyed into the database and processed
into NEMS.

Necessary data are subsequently microfiched, microfilmed, or committed
to another form of electronic storage, and the accountable property
custodian is notified. Data is recorded at this point, and a NASA Form
1602 is generated and forwarded to the accountable property custodian.

1.2.12 NEMS Configuration Control Board is a permanent technical control
group responsible for maintaining configuration control for the system.
Members come from each Center and NASA Headquarters. The Board
Chairperson convenes the group every second Tuesday of the month or as
necessary.

1.2.13 Center Deputy Chief Financial Officer (Center Finance Property
Accountant)

1.2.13.1 The Center Deputy Chief Financial Officer will conduct a
monthly reconciliation of equipment type accounts with the property
records maintained by the SEMO. Differences shall be mutually resolved;
ending balances of Center-held capital equipment shall be established
for reporting purposes.

1.2.13.2 Corrective adjustments shall be processed so that the net
results thereof are reflected in all financial reports submitted as of
September 30, each year (i.e., the Analyses of Fixed Assets Report (NASA
Form 1490) and that the account balances are submitted via the
accounting system (SAP) and the financial controls identified by
Financial Management Requirement Volume 6, Chapter 4, Section 0801E.

1.2.13.3 The detailed property records required by this manual will not
be duplicated by the Center Duty Chief Financial Officer. Entries in the
Center financial ledger accounts shall be independently developed by
accounting personnel to the maximum extent practicable as set forth in
Financial Management Requirement Volume 6, Chapter 4.

1.2.14 Center Security Officer. The Center Security Officer shall keep
the SEMO fully informed concerning reported or suspected losses of
Government property.

1.2.15 Center Property Survey Officer. Center Directors shall appoint,
for a specified term, a Center Property Survey Officer with authority to
approve all survey reports and investigate survey reports not handled by
the Property Survey Board. The Property Survey Officer may refer surveys
to the Property Survey Board or SEMO for their action. The SEMO, their
supervisors, or subordinates shall not be designated as Property Survey
Officers.

1.2.16 Property Survey Board or Equivalent. Center Directors shall
establish a Property Survey Board, for a specified term, composed of two
or more members (with alternates, as appropriate) and a chairperson who
will investigate and make recommendations to the appropriate management
level concerning the loss, damage, or destruction of property equal to
or greater than \$5,000 in acquisition value. This would include items
classified as sensitive. Loss, damage, or destruction cases involving
items valued under \$5,000 do not require Property Survey Board review.
These cases require only the Property Survey Officer\'s actions.

1.2.17 Property Disposal Officer (PDO). The Center Property Disposal
Officer is responsible for the utilization and marketing of NASA
personal property no longer needed by the acquiring organization. The
responsibilities of the Property Disposal Officer are outlined in NPR
4300.1, Personal Property Disposal Procedural Requirement Chapter 1, and
NPR 4310.1, Identification and Disposition of NASA Artifacts paragraph
2.5.1. The PDO ensures that available NASA property, including
equipment, is transferred for further use to other NASA organizations
(including NASA contractors), other Federal agencies, and eligible
donors (including State and local governments, schools, and colleges),
in compliance with all applicable Federal laws and regulations. The PDO
ensures that remaining equipment is sold to the general public in
compliance with all applicable Federal laws and regulations.

**1.3 Support for Special Programs**

1.3.1 Purpose. This part sets forth equipment policies and practices
necessary to support special programs sponsored by the Federal
Government.

1.3.2 Small Business Innovation Research (SBIR) Program

1.3.2.1 To comply with Public Law 102-564, Small Business Research and
Development Enhancement Act of 1992 (an amendment to Public Law 97-219,
effective July 22, 1982), special provisions regarding equipment loans
shall be implemented by the Agency. Profit-seeking organizations
participating in the SBIR program shall receive consideration relating
to Government property as represented in the following paragraphs:

a\. If the reclamation of property provided to profit makers leads to
cost inefficiencies on the part of the Agency.

b\. When it is not cost effective to permit retention and title transfer
to the small business, as outlined in NPR 4300.1, NASA Personal Property
Disposal Procedural Requirements, the 1992 Act provides for a bailment
(loan) of property to the small business for a period of not less than
two years from the initiation of Phase III of the SBIR.

1.3.2.2 Loan agreements for Phase III activity shall be requested by the
contracting officer and accomplished by the SEMO to include the
following special provisions:

a\. The Phase III loan agreements shall be separate agreements from the
Phase I and Phase II contracts.

b\. Loans to the SBIR and other profit-making organizations shall be
administered by placing equipment on loan under Center inventory control
and will be certified annually.

c\. The loan agreements will require no annual recertification or
renewal during the first two years but will be recertified annually
thereafter.

d\. The loan agreements will be accomplished based on the special needs
of the organization requesting the loan. If more then one request is
submitted for the same item, a decision will be based on priority.

e\. The loan must be coordinated with the appropriate contracting
officer.

f\. Loans under the SBIR program will be authorized and approved by the
Center Director or designee.

g\. The provision of this section applies to SBIR loans in lieu of
existing loan provisions. However, accountability of loans will be
administered in accordance with the provisions of this NPR.

1.3.3 High Performance Computing and Communications Program

1.3.3.1 To comply with the High Performance Computing and Communications
(HPCC) Act of 1991 (15 U.S.C. 5501 et seq.), special provisions
regarding equipment loans shall be implemented by the Agency.

a\. Schools participating in the HPCC program receive special
consideration relating to Government property.

b\. The acquisition of equipment for the purpose of loans to K-12
schools is permitted in accordance with the HPCC Act.

1.3.3.2 Loan agreements for HPCC activities are requested by
participating schools and will include the following special provisions:

a\. The loan must be coordinated with the appropriate Center HPCC
organization and the Office of Chief Counsel.

b\. The SEMO is authorized to sign HPCC loans.

c\. The provisions of this section apply to the HPCC program in lieu of
existing loan provisions. Accountability and control aspects of the
loans shall be administered in accordance with the provisions of NPR
5800.1E, Grant and Cooperative Agreement Handbook (See paragraph 3.4).

**CHAPTER 2: Equipment Acquisition**

**2.1 Equipment Acquisition**

2.1.1 Purpose. To establish uniform guidelines for the administration of
equipment acquisition concerning property control and the logistics
organization, including the preparation and coordination of equipment
specifications, identification of unique equipment, and the approval to
acquire the equipment. Receipt of any equipment that has not come
through the Central Receiving will immediately be reported by the
customer to the Equipment Manager. NASA equipment shall be acquired and
used only to support official program or institutional operations.
Equipment includes all items of property configured as mechanical,
electrical, or electronic tools and apparatus, which function
independently or in conjunction with other equipment that has a useful
life of two years or more, and is not consumed in an experiment. This
section applies to equipment-using organizations and controlled
equipment which is acquired and used by NASA Centers. Controlled
equipment is defined in Appendix A, Definition of Terms. This chapter
sets forth administrative requirements for the acquisition and use of
new or replacement equipment. NASA contractors are required to
acquisition equipment in accordance with the FAR and NASA FAR
Supplement.

2.1.2 Developing Cost Estimates

2.1.2.1 Preparation of supporting documentation (detailed explanation
justifying project requirements) is required for all cost estimates
involving [capital equipment]{.underline} (\$100K, with a useful life of
two or more years) to be acquired with funds from the following sources:

a\. Human Space Flight (HSF).

b\. Science Aeronautics and Technology (SAT).

c\. Mission Support (MS).

Additionally, this requirement applies to items costing \$250,000 or
more or items collectively costing \$1 million or more for the same
purpose.

2.1.2.2 Centers shall be required to provide supporting documentation
for all equipment items and related facility projects that meet the
capital equipment acquisition dollar levels.

2.1.3 Identification of Unique Equipment

2.1.3.1 Specialized equipment items or equipment systems generally not
commercially available which, by design or function, may be subsequently
redistributed and used for other purposes shall be designated as unique
equipment at the time the equipment becomes inactive. The responsible
division director or chief will make this determination in coordination
with the NEMS equipment manager. When unique equipment becomes inactive,
it must be reviewed throughout NASA for other use, following the
screening procedures.

2.1.4 Equipment Acquisition Documents

2.1.4.1 Copies of purchase orders or documentation supporting the
estimated costs of fabricated or prototype items may be used.

2.1.5 Procedures for Approving All Capital Equipment Acquisitions

2.1.5.1 These procedures shall establish equipment-approval authority at
a level which ensures that the approving officer is knowledgeable of the
overall equipment requirements, the Center Director\'s equipment
acquisition policy, and other Agency policy. The approving official will
ensure that a review of the requirement is made by technically qualified
personnel, preferably independent of the requiring office, and shall
ensure that coordination is effected with any offices functionally
responsible for management and control of the equipment. Examples of
equipment that are subject to such reviews are transportation,
photographic, automatic data processing, aircraft, safety, and weapons.

2.1.5.2 Prior to acquisition of an item valued at more than \$25,000,
the contracting officer will ensure that appropriate consideration has
been given to the Agency\'s existing equipment assets and that screening
efforts have been accomplished through the Center's Disposal Office.

2.1.5.3 When transfer or loan from another Government agency or NASA
Center is involved, the SEMO and requesting organization should be
contacted for shipping and handling instructions. Requests for NASA
Headquarters assistance in obtaining equipment from other Government
agencies shall be coordinated by the SEMO, the Property Disposal
Officer, and, if needed, the Headquarters (Agency) Logistics Manager.

2.1.6 Prescreening of NASA Property Disposal Management System (NPDMS)

2.1.6.1 For an item of equipment estimated to cost more than \$25,000,
the requesting office should contact the Center Property Disposal
Officer for the prescreening of NASA NPDMS records prior to initiation
of a procurement request. Screening should be done to determine the
availability of candidate equipment that may satisfy the requirement
and, thus, avoid a new acquisition. This informal prescreening technique
is designed to reduce lead time and paperwork in the event that existing
equipment can be used. Also see Chapter 4.2. and Appendix D.

2.1.7 Approving Contractor Proposals for Equipment

2.1.7.1 Contractor proposals for equipment acquisition shall be
processed and administered pursuant to the guidelines set forth in the
FAR and NASA FAR Supplement and shall be submitted to the responsible
contracting officer for approval.

2.1.8 Equipment Subject to Special Controls and Reporting Requirements

2.1.8.1 Additional special controls and reporting requirements are
established for the following equipment:

2.1.8.2 Motor Vehicles. Separate annual calls are made for the Office of
Management and Budget (OMB) and congressional budget submissions.
Specific policies and procedures for the authorization, acquisition,
utilization, and disposal of vehicles are set forth in NPR 6200.1, NASA
Transportation and General Traffic Management. Federal Property
Management Regulations, Amendment G-47, requires that passenger-carrying
vehicles and trucks achieve a fleet average fuel economy as established
by the Secretary of Transportation. In this regard, purchase requests
and documentation submitted to the General Services Administration must
include a NASA Form 925, Motor Vehicle Authorization and Certification,
which has been approved or certified by the Logistics Management Team,
NASA Headquarters.

2.1.8.3 Aircraft. The policies and procedures for aircraft acquisition
are set forth in NPD 7900.4, Aircraft Operations Management and NPR
7900.3, Aircraft Operations Management. The requirements herein are for
accountability and control.

a\. To ensure accountability, control, and visibility of NASA aircraft,
the Center Aircraft Management Officer (AMO) shall provide data to the
Center SEMO for inclusion into the NEMS equipment file.

b\. The AMO shall identify the purpose and use of all NASA-owned
aircraft, active and inactive (e.g., decommissioned, displayed, parts,
program support, research). The AMO will identify aircraft obtained
solely for spare parts or for future programs; these aircraft shall be
accounted for in NEMS as a spare parts aircraft. The purpose and use may
be incorporated into the item name or documented in the local data
field.

c\. The AMO shall identify on the NEMS record the Federal Aviation
Administration Registry Number or the NASA tail number of each aircraft.
The number will be entered into the Unique Equipment Number field of the
record.

d\. The AMO must submit a Cannibalization/Modification Request (NASA
Form 1617) for each aircraft acquired or identified as a spare parts
aircraft. The SEMO and the Center Deputy Chief Financial Officer must be
notified annually by the AMO of all value adjustments, or when the value
of the aircraft drops 10 percent or more. The
Cannibalization/Modification Request form will be reviewed, approved,
and maintained on file and cost-value adjustments shall be processed
accordingly. Based on the information provided by the AMO, the Equipment
Manager will ensure that the NEMS equipment record for aircraft is
accurately updated.

e\. Center-owned aircraft and stock shall be under appropriate Center
inventory and financial accounting controls. Annual physical inventories
of Center-owned aircraft, including (aircraft) spare parts, shall be
taken to determine the accuracy of the records in the NEMS control
system. Adjustments shall be made to ensure that financial statements
are accurate. The results shall be reconciled by the AMO and the SEMO
and forwarded to the Center Deputy Chief Financial Officer.

2.1.8.4 System. Where components are assembled into a system, a Parent
record needs to be established in NEMS to record the aggregate value of
the system for financial reporting purposes. The following process is
provided:

a\. Assign an Equipment Control Number (ECN) NEMS tag to the item of
equipment for tracking purposes. A new ECN is required, not the ECN of
any component. The Parent record will be virtually tagged (see section
(3.2.4).

b\. The NEMS Parent Child Capability (PCC) must be used in order to
attach the Parent record to all tagged components (Children) that
comprise the system, as well as to identify the value of all non-tagged
components.

c\. No subsequent activity (e.g. loans, repairs, transfers, disposals)
of a component (Child) attached to a Parent record is performed until
the component has been removed from the Parent record. Adding or
removing components will result in the value of the Parent record
changing accordingly. The capital value of individual components will be
rolled up into the capital value of the Parent record and removed from
the component. Removing a component from a Parent record will result in
the component regaining any capital value that it had before it was
added.

2.1.9 Equipment Acquired for Use in Mission Support Under the Space
Tracking and Data Systems Program

2.1.9.1 The acquisition of space tracking and data systems equipment
shall be subject to the Work Authorization Document (WAD) procedures
established by the Space Operations Program. The acquisition of all
tracking and data acquisition equipment shall be administered only in
accordance with these established procedures.

2.1.9.2 The Deputy Associate Administrator for Space Communications,
Office of Space Flight Operations, shall provide to the SEMO input for
the congressional budget for WAD-approved equipment acquisitions as set
forth in the annual budget call. In addition, by November 15 of each
year, the Office of Space Flight shall provide a report for the
preceding fiscal year of actions taken by Centers for the acquisition of
equipment as required.

2.1.10 Fabrication of Equipment

2.1.10.1 Equipment that is fabricated at or by a NASA Center shall be
sufficiently identified to enable appropriate Federal Supply Class
identification and equipment accountability.

2.1.10.2 Documentation for, and description of, fabricated equipment
shall be developed and furnished to the SEMO for use in determinations
regarding the physical control of such items.

2.1.11 Acquisition of Office Furniture

2.1.11.1 Before purchasing new office furniture, the acquiring activity
will check the local excess inventory for items that can be reused.
Items of office furnishings costing \$5,000 or more shall be controlled,
as set forth in Chapter 3, Equipment Administrative Procedures and Use,
of this NPR.

**CHAPTER 3: Equipment Administrative Procedures and Use**

**3.1 Equipment Control**

3.1.1 Purpose. This chapter is intended primarily for equipment
management personnel. It applies to Center-held equipment and sets forth
the administrative requirements for establishing and maintaining the
following:

a\. Equipment identification and accountability.

b\. Procedures for reporting on lost, damaged, or destroyed equipment.

c\. Equipment loan procedures.

d\. Offsite use of Government equipment by employees.

3.1.2 Controlled Equipment Classification and Control

3.1.2.1 Pursuant to the policy set forth in NPD 4200.1, Equipment
Management, each NASA Center shall establish and maintain local
procedures, meeting NEMS requirements for the administrative control of
equipment. The procedures will apply to all equipment classifications.
Such equipment shall be referred to generically as controlled equipment.
Center polices shall, at a minimum, meet the requirements of this
section.

3.1.2.2 Centers shall control all equipment:

a\. All capital equipment, with an acquisition cost of \$100,000 or more
and with an estimated useful life of two years or greater that is not
consumed in an experiment.

b\. All other equipment items with an acquisition cost of \$5,000 to
\$99,999 (noncapital) and items identified and designated as sensitive
items with an acquisition cost of \$500 or more shall be recorded and
controlled under the procedures prescribed in this section. The
sensitive item equipment list can be found in Appendix C.

3.1.2.3 The Equipment Type Accounts set forth in Appendix B are
consistent with the Federal Supply Classification Code. The two-digit
Federal Supply Group (FSG) shall be used to classify controlled
equipment, reconcile and report capitalized equipment to finance, and
determine the useful life of capitalized equipment.

3.1.2.4 Centers shall establish control of equipment within 3-5 days of
receipt and acceptance, by marking the equipment with an ECN and
entering the required data into the property database. For financial
purposes, capital property records are considered to be subsidiary
records to the NASA general ledger accounts.

3.1.2.5 Centers shall assign an ECN and control each system, subsystem,
or part of a subsystem that meets the criteria for control and is
supplied as a unit of controlled equipment on an acquisition document
when:

a\. Component equipment items of the system or subsystem are
interchangeable.

b\. Spare component equipment items are held for replacement of like
component equipment items except when they are identified as Line
Replaceable Units in an inventory management system.

c\. They are stocked in a supply management repair program that controls
repairable equipment items by issue location.

3.1.2.6 When acquisition documents do not identify equipment to the
component level, Centers will enlist the assistance of technical
personnel to identify and establish whether component equipment items
meet any of the qualifications for control as prescribed under
paragraphs 3.1.2.2 and 3.1.2.4.

3.1.2.7 When noncapital equipment is furnished to a contractor, the
contractor's records shall serve as NASA's "stewardship" or custodial
records for that equipment.

a\. Centers may retire, to history, equipment records for furnished
equipment when the equipment has an acquisition value under the
capitalization threshold, upon delivery to, and receipt by the
contractor. When this equipment is no longer needed by the contractor
and returned, Centers shall activate retired records of equipment for
NASA use.

b\. Further transactions to noncapital items must be recorded through
contract and contract- related documentation and other external systems,
such as the Plant Clearance Automated Reutilization Screening System
(PCARSS).

3.1.2.8 To facilitate financial recordkeeping and reporting, Centers
will continue to maintain property records for all Government-furnished
equipment with an acquisition cost exceeding the capitalization
threshold. All transactions associated with these items, such as a
change of custody between contractors, must be recorded and documents of
the changes retained.

a\. Center procedures shall require a review of the transfer documents
to ensure that they reflect accurate and complete information as
identified in NASA FAR Supplement 1845.7101-2. Each transfer document
should clearly and separately identify any capital equipment that will
be furnished to a contractor.

b\. Centers shall establish a custodial account for each contract with
Government furnished capital equipment. Three standard characters, "GFP"
(Government Furnished Property), will appear in the first three
characters of the custodian account field to differentiate between GFP
and NASA-held property accounts for reporting. The Contracting Officer's
Technical Representative (COTR) shall serve as the property custodian
for these accounts.

c\. Centers shall transfer all property that meets the capitalization
threshold to these accounts.

d\. Centers shall process and record changes in custody between
contractors and contracts as changes to property custodial accounts.
This includes changes between contracts with the same contractor, such
as follow-on contracts.

e\. Changes in custody between contractors holding contracts issued by
different Centers shall require a corresponding inter-Center transfer.

f\. Centers shall retire items to history when contractors report those
items on contract disposal documents or when the contractor advises that
they have been consumed (obsolescence is not the equivalent of
consumption) during the production of the end-item deliverable or when
they have lost their identity by incorporation into a contract
deliverable. Center Industrial Property Officers, delegated Property
Administrators, and Plant Clearance Officers will assist in collecting
and disseminating documentation of these transactions.

3.1.2.9 New equipment that is received, delivered, and accepted (by a
NASA official) will remain at a contractor's facility for use on the
contract. This equipment shall be classified as "delivered in place."
When the cost reported to the property system from the financial records
exceeds the capitalization threshold, Centers shall:

a\. Add the equipment to the equipment records.

b\. Furnish the equipment to the contractor using the same receiving,
transfer, and contract documentation as used for other capital-valued
GFP.

c\. Transfer the property to the custodial account assigned to the
contract.

d\. Require that a reconciliation process be established to reconcile
capitalized asset transfers on a monthly basis and include with that
process a formal confirmation between the gaining and losing parties.

3.1.2.10 Contractors are required by regulation to identify and
appropriately segregate Government property in their possession. As a
result, it is not necessary to provide a NASA ECN to the contractor for
equipment which is "delivered in place" when these items can be recorded
using unique identification techniques. Centers shall develop and
implement procedures to ensure the collection of unique identification
information by the receiving official, as necessary.

a\. Unique identification consists, at minimum, of a combination of the
manufacturer (cage) code and serial number.

b\. The serial number must be clearly and permanently marked on the
item.

3.1.3 Noncontrolled Equipment

3.1.3.1 Noncontrolled equipment includes items with an acquisition cost
of less than \$5,000 and that are not classified as sensitive. Each
Center shall develop internal procedures for managers, custodians, and
users on the "what and how" of handling noncontrolled equipment. Such
equipment shall be processed with appropriate documentation after
receipt.

3.1.3.2 Each item of noncontrolled equipment shall be affixed with a
\"Property of U.S. Government\" decal, NASA Form 1517 or 1517a, except
when not physically or technologically feasible. Smaller versions of the
decal are also available for use on small items of noncontrolled
equipment. The use of the NASA Form 1517 on noncontrolled office
furniture is optional.

3.1.4 Experimental and Fabricated Equipment

3.1.4.1 Center equipment that is designed or fabricated and meets the
criteria for controlled equipment shall be controlled under procedures
3.1.2.2, except equipment integrated with test articles being
experimented on and subject to frequent configuration change. If
subsequent to experiment use an item's configuration and use becomes
stable and otherwise meets the criteria for controlled equipment,
Centers shall establish equipment control in accordance with this
chapter.

3.1.4.2 Centers will monitor sources and locations of experimental and
fabricated equipment to ensure that appropriate equipment control
actions are accomplished when such equipment meets the criteria for
control.

3.1.5 Equipment Located at NASA Centers Other Than the Funding Center

3.1.5.1 Center or location having possession of the equipment shall be
responsible for equipment control and accountability regardless of
geographical separation from the funding or acquiring Center except
under short-term loans of equipment for tests, inspections, and other
uses.

3.1.5.2 The Center responsible for administration of a contract is
responsible for control and accountability of equipment furnished to
that contract.

3.1.6 Equipment Directly Delivered to Nonfunding Centers

3.1.6.1 When equipment is directly delivered to another Center, the
Center responsible for the procurement of the equipment must control the
equipment until accountability and control are transferred to and
accepted by the Center that received the shipment.

3.1.6.2 Establishing Control:

a\. The receiving Center is responsible for security of received
property, regardless of the funding or procuring Center.

b\. The procuring Center's SEMO shall provide all available acquisition
information to the receiving Center's SEMO when they become aware of
situations in which equipment acquired by their Center procurement
activity will be directly delivered to another Center. If the procuring
Center differs from the funding Center, the procuring Center's SEMO will
also provide all available acquisition information to the funding
Center's SEMO.

c\. The receiving Center's SEMO will receive the equipment and send a
copy of all receiving and inspection documentation to the funding
Center's Equipment Manager and Center Deputy Chief Financial Officer.
The receiving documentation will contain sufficient information to
establish an equipment record.

d\. The funding Center's Equipment Manager shall add the equipment
item(s) to the property data base according to and on receipt of the
receiving and inspection documentation.

e\. As soon as possible after processing receipt of the item, the
funding Center's Equipment Manager shall process a transfer transaction
to the receiving Center.

f\. The receiving Center's Equipment Manager shall process transactions
to receive the transferred property from the funding Center. The
receiving Center's Equipment Manager shall retain the receipt and
inspection form and contract or purchase order as the authorizing source
documents.

g\. The receiving Center will return appropriate documentation to the
funding Center's Equipment Manager to acknowledge receipt and acceptance
of the equipment, with a copy to the receiving and funding Center Deputy
Chief Financial Officer.

3.1.6.3 The receiving Center shall report (to the funding Center) that
the equipment has been received, accepted, and tagged. The NEMS
Equipment Manager shall immediately process a NEMS Transaction 01
(Receipt by Purchase - NASA Funded), using the contract or purchase
order as the authorizing source document. Receiving documentation
provided by the receiving Center will be forwarded to the Financial
Management Office for costing and disbursement. NEMS Transaction 65
(Transfer to Another NASA Center) and shall be processed in NEMS, using
the shipping document as the authorizing source document.

3.1.7 Equipment Found on Station (FOS)

3.1.7.1 The Center SEMO shall take immediate action to establish
equipment accountability and control of all items found that meet the
control criteria but that are not controlled in the Center\'s equipment
records.

3.1.7.2 The Center SEMO is responsible for ensuring that a documented
investigation is conducted for each case to determine the circumstances
that allowed the equipment to be onsite (at the Center) without
equipment management control. NASA Form 1618, Found on Station Equipment
Investigation, will be used to document the circumstances and
investigations (instructions are contained on the reverse side of the
form).

3.1.7.3 Upon conclusion of the investigation, the SEMO will analyze all
findings and facts developed and forward a report to upper management,
if necessary, recommending corrective actions necessary to prevent
similar occurrences.

3.1.8 Classified Equipment

3.1.8.1 The NEMS shall be used throughout the Agency to identify,
control, and account for Government-owned equipment acquired by or in
use by NASA, which includes equipment that processes national security
information and meets the parameters established by NPD 4200.1A. The
only exceptions are Communications Security (COMSEC) materials and
equipment, which are addressed separately under paragraph 3.1.8.2., and
national security systems equipment deemed to be classified having
Operations Security (OPSEC) impact. In such rare cases, only the NASA
Principal Accreditation Authority (PAA) may exempt such equipment from
NEMS, which shall be documented and placed in the applicable System
Security Authority Agreement / System Security Plan (SSAA/SSP) and
requires the NASA Designated Approval Authority/Certifying Authority
(DAA/CA) to implement equipment accountability equivalent to or more
stringent than NEMS. The tagging and tracking of national security
systems equipment in the NEMS shall be done in such a way as to not
divulge the security characteristics of the system or national security
information itself. OPSEC shall be factored into the accounting process
and dictate the specifics. National security systems shall be
appropriately sanitized prior to access for tagging and accounting
requirements by NEMS personnel. Classified magnetic media or National
Security System (NSS) output shall not be placed into the NEMS process.

3.1.8.2 COMSEC materials and equipment (e.g., secure telephones) protect
our Nation's most sensitive national security interests; they require
special processes, special clearances, and special access. Only
individuals with a need-to-know shall have access to COMSEC materials
and equipment. Therefore, NASA COMSEC materials and equipment shall
participate in the national Consolidated Material Control System (CMCS)
process for accountability and shall not be entered into the NEMS.

3.1.9 Furniture and Furnishings. Office furniture and furnishings under
\$5,000 are noncontrolled items; however, group records may be
established and maintained by location, property management area, or
Center.

3.1.10 Vendor-Owned Equipment Onsite. When a vendor installs or uses
vendor-owned equipment at a NASA Center, for any reason, and retains
title, such equipment must be clearly identified as being the property
of that vendor.

3.1.11 Centers that allow employee-owned equipment onsite must ensure
that such equipment is clearly identified as being the personal
equipment of the employee.

3.1.12 Contractor Equipment Onsite. Pursuant to NASA FAR Supplement
1852.245-77, contractors must secure written consent from their
responsible contracting officers, prior to their use (at a NASA
facility), of equipment owned or leased by the contractors or of other
equipment for which the contractors are accountable under any other
Government contracts.

**3.2 Controlled-Equipment Accountability**

3.2.1 Purpose. This section sets forth requirements for establishing and
maintaining effective controlled-equipment accountability that provides
a continuous audit trail of an item from receipt until transfer of
accountability or disposal.

3.2.2 ECN. Each item of controlled equipment will be physically
identified with a singular ECN (See paragraph 3.2.4).

3.2.3 ECN Register. Each Center shall establish and maintain an ECN
register. The SEMO will use the register to control the distribution of
the ECN tags. The register will include the following data: ECN,
signature of person(s) accepting blocks of tags prior to assignment, and
date assigned or tagged.

3.2.4 Tagging of Equipment. Each item of controlled equipment, to
include Flight Hardware Class I, Class II, and Class III, shall be
affixed with an ECN tag upon receipt, inspection, and acceptance at the
Center. This number will be affixed by means of a NEMS bar-coded tag or
a mini bar-coded tag for small components and firmly affixed in a
conspicuous place, preferably on the front of the item. The number may
be etched or painted on items not conducive to the application of tags.
As an additional option for assets that cannot be physically tagged due
to form, fit, and/or function (e.g. the parent ECN/record for a system),
a virtual tagging process shall be developed to assign a NEMS ECN that
will be documented for audit purposes. This process shall be applied by
exception only and could include putting the tag on the NF 1602,
picture, or other traceable document." For virtual tagging, a request
must be submitted in writing by the user with a detailed explanation to
justify this exception. This request will be submitted to the SEMO for
approval.

3.2.5 Reconciliation, Adjustment, and Reporting of Property Records and
Financial Accounts Balances.

3.2.5.1 As required, a monthly reconciliation and adjustment of property
records and general ledger accounts shall be conducted. Each Center
Deputy Chief Financial Officer and SEMO shall establish a monthly
transaction cutoff date to facilitate reconciliation. The Center Deputy
Financial Officer and the SEMO will jointly sign the annual Analyses of
Fixed Assets Report, NASA Form 1490, to reflect the agreed-upon ending
balances that shall be utilized for financial reporting purposes.

3.2.5.2 The Analyses of Fixed Assets Report, NASA Form 1490, the account
balances submitted via the accounting system (SAP), and the financial
controls identified by Financial Management Requirement Volume 6,
Chapter 4, Section 0801E must be in agreement.

3.2.6 Control of Documents. The Center shall develop detail procedures
to ensure that all documentation and transactions affecting the
accountable records, such as additions, deletions, and cost adjustments,
are serially controlled and processed promptly. The Equipment Manager
will ensure that copies of this documentation are maintained using
microfiche or microfilm, electronic storage, or other methods deemed to
be economical and responsive to this paragraph.

3.2.7 Receiving and Inspection of Equipment. Each Center shall establish
a centralized receiving location for the processing of controlled items.
Upon receipt of purchased equipment and prior to acceptance, an
inspection must be conducted to ensure that the items received are
consistent with the requirements of the acquisitions documents. The
equipment will be inspected for possible damage and defects. If the item
is delivered to the employee (desk top delivery), the employee receiving
the item shall immediately take the purchased equipment to the central
receiving location where accountability will be determined.
Accountability shall be established for controlled equipment by
preparing the documentation necessary for entering the equipment data
into the NEMS database. Equipment delivered on a DD Form 250, Material
Inspection and Receiving Report, or equivalent acceptance document or
method, shall be fully priced per line item. An incomplete DD Form 250
will be referred to the appropriate contracting officer for correction.
The assigned ECN are to be annotated on the receipt and inspection
report along with any serial number, model numbers, or other appropriate
identifying markings.

3.2.7.1 Other receipts of equipment shall be received and reviewed
against the accompanying shipping documentation and, if accountable to
the Center as controlled equipment, assigned an ECN the same as
purchased equipment. Controlled equipment transferred in from another
NASA Center retains the ECN assigned by the initial acquiring Center.

3.2.7.2 Equipment entering the Center on loan or lease shall be handled
and identified as required (See paragraph 3.4.9).

3.2.7.3 It is the user's responsibility to immediately notify the
property custodian/SEMO of all controlled items purchased via credit
card. Each Center must establish internal procedures to ensure that
items purchased by this method are properly controlled and tagged. This
would include hazardous material controls if appropriate.

3.2.8 Shipment of Equipment. Equipment to be hand-carried or shipped
from the Center shall be documented and coordinated with the SEMO prior
to the physical movement of the equipment to ensure that the proper
actions and any adjustments are made to the NEMS equipment control
records.

3.2.9 Removal of Tags and Other NASA Identification

3.2.9.1 The control number tag or other NASA identification shall be
removed or obliterated when NASA control of equipment is discontinued,
except for equipment shipped to a contractor as Government-Furnished
Equipment. The number shall be canceled by the current accountable
Center, but annotated on the reference document used to support the
removal of the item from the NEMS control records.

3.2.9.2 Equipment shipped to contractors as Government-Furnished
Equipment under their contracts shall retain the NEMS control tags or
other NASA identification.

3.2.10 Removal of Equipment from the Center for Repair under the Terms
of a Warranty. The Center shall maintain equipment control over
equipment that is removed from the Center for repair, calibration, or
under the terms of a purchase warranty.

**3.3 Equipment Loans**

3.3.1 Purpose. This section sets forth the authority, requirements,
responsibilities, and procedures for authorizing and accomplishing the
loan of NASA equipment. This section does not apply to the equipment
loan policy for NASA employees or Center support contractor(s).

3.3.2 Policy. Loans made external to NASA must be made by an appropriate
instrument. These loan agreements must be reviewed by the Office of the
Chief Counsel (for equipment at a Center) or Office of the General
Counsel (for equipment at Headquarters) and other appropriate officials
and approved by the Center SEMO in accordance with the provisions or
procedures of NPD 4200.1.

3.3.3 Procedures

3.3.3.1 Any NASA employee receiving a request for the external loan of
NASA equipment will refer the request to the Center SEMO. Contacts
regarding proposed loans should be made far enough in advance to permit
orderly review and approval of the request and timely preparation of the
necessary documentation.

3.3.3.2 The SEMO will coordinate loan requests with the user
organizations. The division director or designee will certify that the
equipment to be loaned may be released without adversely affecting
Center requirements.

3.3.3.3 When the concurrence of the authorizing official has been
obtained and the loan is to be made external to NASA, the SEMO will
determine the appropriate method for accomplishing the loan.

3.3.3.4 If the loan is to be made to another NASA Center, it is not
considered external but referred to as a \"borrow\" in NEMS.

3.3.3.5 If the loan is effected pursuant to the terms of any other type
of agreement, the loan documents, correspondence, subordinate loan
agreements, and shipping documents will be approved by the SEMO.

3.3.3.6 If the loan is to be effected with any foreign government or
organization, it will be approved by the Office of External Relations,
NASA Headquarters.

3.3.3.7 The actual physical movement of the equipment will be
coordinated with the Center SEMO.

3.3.3.8 For each loan, the SEMO will ensure that a case file is
established containing appropriate copies of authorizing agreements and
all other pertinent supporting documentation.

**3.4 Loan of Equipment to Government and Non-Government Organizations**

3.4.5.1 NASA equipment may be loaned to Government and non-Government
organizations, private individuals, corporations, or other entities,
provided the loan is in the public interest and meets the following
criteria:

a\. The borrower has both the facilities and capability to secure and
safely operate the equipment.

b\. The loan will be temporary.

c\. It will benefit the Government.

d\. The borrower acquires no rights to the equipment.

e\. The equipment is not modified.

f\. The Center SEMO approves and, where applicable, the Office of the
Chief Counsel (or the Office of the General Counsel for Headquarters
property) concurs.

3.4.5.2 Custodian records of loaned or borrowed equipment will continue
to be maintained by the lending property custodian. All loans off the
Center will be made as prescribed.

3.4.5.3 Loans of equipment for use at home or for telecommuting
initiatives must be necessary or beneficial to the conduct of NASA's
missions or other official Government purposes.

3.4.6 Policy and Procedures for the Loan of NASA Equipment to
Profit-Making Organizations for Purposes Not Covered in a Procurement
Contract or Other Agreement.

3.4.6.1 NASA equipment may be made available to profit-making
organizations only for purposes authorized by the Space Act and
specified in the loan agreement. Loans of equipment under this paragraph
must be authorized and approved by the Center Director or designee.

3.4.6.2 Before an equipment loan is accomplished, the following will be
included in the supporting loan file:

a\. A statement from the user organization that release of equipment
will not adversely impact the organization's operations.

b\. Coordination with the Center procurement officer to ensure that the
user will not receive an unfair competitive advantage for a Government
contract.

c\. A determination of whether monetary consideration will be required
for use of the property.

3.4.6.3 Each loan and its supporting file will be concurred on and
approved by the Office of the Chief Counsel (or the Office of the
General Counsel, as appropriate) before execution by the Center SEMO or
designee.

3.4.6.4 NASA Headquarters, Logistics Division shall be provided executed
copies of all loan agreements involving equipment costing \$100,000 or
more.

3.4.7 Inventory Control of Loans (Other Than Employee Loans) and Leases

3.4.7.1 The authorizing officials will ensure that each loan agreement
shall not exceed one year initially. It will contain a provision
requiring the borrower to report and certify annually to the lending
Center SEMO, on the anniversary date of the loan, a recertification
statement. The recertification statement shall contain the
identification number assigned to the equipment, its name, current
location, date physically sighted, current use, and validation of the
requirement for continuation of the loan.

3.4.7.2 The SEMO or designee shall develop and maintain a suspense
system for loans and leased equipment to ensure that equipment is
returned or leases are extended. A Loaned Equipment Expiration Report
and a NEMS Report 133, Leased Out Equipment Return Candidate List, can
be generated to review the status and expiration of loans or leased
equipment. If loan extensions are determined necessary, the loaning
officials will submit a recertification statement. Authorizing officials
must review and certify extension of expired leases before renewal to
ensure outgoing leases do not exceed temporary use policy.

3.4.8 Control of Incoming Loans and Leases

3.4.8.1 All incoming loans and leases of equipment that meet the
criteria for control, regardless of source, shall be processed at the
time of receipt by the SEMO. Leased equipment under NASA-wide contracts,
such as cost-per-copy-service contracts, are exempt.

3.4.8.2 Any organization loaning or leasing equipment to NASA must have
a written agreement with NASA, stating the loan purpose and period.

3.4.8.3 All loaned or leased equipment meeting the criteria for control
shall be entered in NEMS under the following guidelines:

a\. Equipment identified in writing for lease or loan for 60 calendar
days or less need not be accountable in NEMS if appropriate
documentation is on file in the equipment organization and equipment is
physically identified as belonging to the borrower. The borrower is
responsible for returning the equipment, through the equipment
organization, within 60 calendar days.

b\. For equipment meeting control criteria, adequate controls shall be
established by processing NEMS Transaction 8 (Receipt from Lease In) or
Transaction 9 (Receipt from Loan In), as appropriate.

c\. The cost for incoming loaned and leased items will be the estimated
original acquisition cost (See Appendix F).

d\. The NEMS Equipment Manager will request a NEMS Report 130, Loaned In
Equipment Expiration Report, monthly. This report generates all incoming
loans due to expire within 30 days of the date of the report. The using
official must review the loan requirement and arrange for return of the
loaned equipment or request extension from the authorizing official of
the loaning organization.

e\. The NEMS Equipment Manager will request, as required, NEMS Report
132, Leased In Equipment Return Candidate List. This report generates
all incoming leases due to expire within a selected date range. The
using official must review the lease requirement and arrange for return
of the leased equipment or request an extension from the authorizing
official of the leasing organization.

3.4.8.4 As required by Financial Management Requirement Volume 6,
Chapter 4, leased equipment is also subject to capitalization if the
original acquisition cost is \$100,000 or more, the useful life is two
years or more, and the terms of the agreement are equivalent to an
installment purchase. Installment purchase means one of the following:

a\. The lease can be converted to ownership at end of lease.

b\. The lease contains option to purchase at a bargain price.

c\. The noncancelable length of lease is equal to or greater than 75
percent of the estimated economic life.

d\. The present value of rental or other minimum lease payments equals
or exceeds 90 percent of the fair market value.

e\. Criteria (c) and (d) do not apply if the beginning of the lease term
falls within the last 25 percent of the total estimated economic life of
the leased property.

3.4.8.5 All incoming leased equipment shall be reviewed by the financial
management organization to determine when capitalization requirements
apply. When financial management determines that a leased item will be
subject to capitalization, the NEMS Equipment Manager shall do the
following:

a\. Ensure that the Loan or Lease Document Number field begins with a
\"C.\"

b\. Request NEMS Report 136, Leased Equipment Subject to Capitalization,
as of September 30 each year. Forward Report 136 to the financial
management organization by October 4, for preparation of the Analysis of
Leases Report, according to Financial Management Requirement, Volume 6,
Chapter 4.

3.4.9 Identification of Equipment on Loan or Lease to the Center. Each
Center shall affix a NEMS bar-coded loan or lease tag to incoming loaned
or leased equipment at the time of receipt to show clearly that such
equipment is not owned by the Center.

3.4.10 Leased Equipment Converted to Purchase. When NASA takes title to
a leased item, the bar-coded paper lease tag should be replaced with a
bar-coded permanent tag, and the item should be processed into NEMS with
Transaction 21 (Lease to Purchase). The add transaction should record
the original lease tag number in the previous ECN field and record the
estimated fair market value in the Cost field. The leased record is then
deleted in NEMS with Transaction 87 (Conversion of Lease to Purchase).

3.4.11 Control of Borrows between Custodians or between NASA Centers. To
differentiate internal loans from external loans within NEMS, the term
\"borrow\" is used for items moving within NASA for temporary use.
Borrows are initiated by one custodian at the request of another
custodian at the same-Center or by one NASA Center at the request of
another NASA Center. For same-Center borrows, NEMS Transaction 38,
Borrowed Out, should be used; for intra-Center borrows, NEMS Transaction
65 should be used. NEMS generates monthly suspense reports based on this
activity. Return of a borrowed item to an accountable custodian is
accomplished with Transaction 39, Borrowed Out or Returned (same-Center)
or Transaction 04, Receipt by Transfer - From NASA Installation
(intra-Center). The SEMO or NEMS Equipment Manager or designee will
initiate another NASA Center\'s equipment borrow request through locally
established documentation. Upon request, NEMS Report 134 (Borrowed
Equipment Return Candidate List) and NEMS Report 350 (Borrow Out Greater
Than One Year) may be generated to ensure equipment return or transfer.

**3.5 Removal and Use of Equipment by Employees**

3.5.1 Purpose. This section describes procedures and responsibilities
for the onsite and offsite removal of Government equipment, (controlled
and noncontrolled) by NASA civil service or onsite contractors.

3.5.2 General Policy

3.5.2.1 Center equipment may be temporarily loaned to employees for use
at home or elsewhere when the authorizing official determines it is
necessary or beneficial in the conduct of NASA\'s missions or other
official Government purposes.

3.5.2.2 Determinations shall be made in writing and will specify the
purpose and loan period. Loan extensions shall be requested prior to the
expiration date of the loan. Equipment will be returned when the
specified purpose for the loan is no longer valid or at the end of the
approved loan period, whichever is earlier. Flexible workplace
agreements may contain provisions for long-term equipment loans to
individual employees. Equipment loaned in this manner need not be
returned for inventory/inspection until the agreement is terminated.

3.5.2.3 Employee loans shall be issued for an initial period of up to
six months or upon completion of the project if shorter. Renewal beyond
the initial six-month period must be reviewed by the division director
and approved by the SEMO. If the equipment is required beyond 12 months,
(a new loan request will not be required) the employee will submit a
written explanation requesting continued use of the item. The request
will be forwarded to the appropriate approving authority, using the
original loan number and data from the original loan request.

3.5.3 Approval to Remove

3.5.3.1 Approval to remove equipment from the Center for offsite use by
a NASA employee will be granted by the division director and approved by
the Equipment Manager, provided the request is in accordance with the
policy of this paragraph and Center policy. The division director must
also provide certification that removal of the property will not
adversely affect the performance of official duties in the division by
the requesting employee or any other division employee and that the
equipment being removed is not excess equipment. For onsite contractors,
the additional approval of the Contracting Officer's Technical
Representative (COTR) and the contracting officer shall be required
before removal.

3.5.3.2 Failure to meet these policy requirements can lead to
disciplinary action for the employee, especially if loss, damage, or
destruction occurs during the removal period.

3.5.4 Procedures

3.5.4.1 Prior to the removal of Government-owned equipment from a NASA
Center (for offsite use), the requester will perform the following:

a\. For Short-Term Loans (not to exceed 30 days): The loan shall be
documented using NASA Form 892 Property Removal Permit or equivalent.

b\. Loans exceeding 30 days (but less than 180 days) shall be documented
using a Center loan agreement between NASA and the borrowing employee.

c\. Loan documentation shall indicate the requester\'s name and
organization identification, the purpose for use and removal of the
equipment, and an explanation of why the official use cannot be
accomplished onsite during normal business hours. Loan agreements must
be approved by the division director and concurred on by the Equipment
Manager.

d\. The requester will submit the NASA Form 892 to the property
custodian for signature. A copy of the NASA Form 892 or loan agreement
shall be retained by the applicable property custodian until return of
the equipment has been verified.

e\. The requester will return the equipment by the date shown on the
NASA Form 892 or loan agreement or request an extension beyond the
originally approved period. The extension shall be submitted in writing
to the division director and submitted to the Equipment Manager for
final approval.

3.5.4.2 Loans of [controlled equipment]{.underline} exceeding 30 days
shall be annotated using NEMS Transaction 38 (Borrowed Out). When the
equipment is returned, NEMS Transaction 39 (Borrowed Out Returned) will
be processed to update NEMS.

3.5.4.3 Center loan agreements shall specifically detail the
responsibilities of the employee with regard to the proper care and
treatment of the equipment and will clearly state that the employee is
subject to disciplinary action or pecuniary liability resulting from
loss, theft, damage, destruction, negligence, misuse, dishonesty, or
wanton and willful misconduct.

3.5.4.4 Employees will notify the responsible property custodian when
the loaned equipment is returned. The property custodian will provide
appropriate notification to the Equipment Manager.

3.5.5 Limited Personal Use of Government Office Equipment Including
Information Technology

3.5.5.1 In accordance with NPD 2540.1F, Personal Use of Government
Office Equipment Including Information Technology, NASA employees may
use Government office equipment for personal needs if the use does not
interfere with official business and involves minimal additional expense
to the Government. This limited personal use of Government office
equipment should not take place during the employee\'s scheduled work
time, with limited exceptions including brief exchanges of information
with doctors\' offices, car repair shops, child care facilities, and
schools during their establishment\'s regular office hours. Employees
are specifically prohibited from using Government office equipment to
maintain or support a personal private business or to assist relatives,
friends, or other persons in such activities. For further definition of
"Limited Personal Use," employees are encouraged to review NPD 2540.1F
or contact their local Equipment Manager.

3.5.6 Shipping Equipment by Center. The NASA Form 892 shall not be used
in lieu of a shipping document. In cases where shipment by the Center is
required, a properly prepared shipping document will accompany the
equipment. A shipping document must be prepared for items of equipment
that are hand-carried.

**3.6 Equipment Use**

3.6.1 Purpose. This section establishes guidelines for the use, custody,
care, and reporting of controlled equipment while in the hands of using
organizations.

3.6.2 Property Management Areas

3.6.2.1 A responsible organization must require that the appointed
property custodians ensure effective control and surveillance of areas
where controlled equipment is maintained. The SEMO is required to
establishment a property custodial account number for each area. The
custodial account number will identify all controlled equipment assigned
within the area for which the management of the user organization is
responsible. The account number will be used for recording transactions
against the account in the Center\'s NEMS database.

3.6.3 Assignment and Responsibilities of Property Custodians

3.6.3.1 A property custodian shall be assigned for each defined property
management area. The duties of the property custodian are set forth in
NPR 4200.2, NASA Equipment Management Manual for Property Custodians.

3.6.3.2 All equipment shall be assigned to a primary user. The primary
user will assume responsibility for stewardship of the equipment and
should report any changes of status, location, or user to the property
custodian.

3.6.4 Walk-Through Inspections

3.6.4.1 Walk-through inspections are required by FPMR Sections
25.109-25.109-2 and 101-43.101, and shall be performed by each division
director, or designee, accompanied by the property custodian. The
walk-through inspection will include all locations both onsite and
offsite for each property management area for the following purpose:

a\. Identifying inactive or underused equipment (for reutilization) that
is no longer required or which is expected to become inactive in the
near future. The equipment will be routinely inspected to ensure that
scheduled or necessary maintenance is being performed and that the
equipment is up to date and in keeping with established performance
requirements.

3.6.4.2 Each NEMS item identified as inactive, including those in
storage, will be reported to the NEMS Equipment Manager.

3.6.4.3 A Memorandum for the Record, covering the results of the
walk-through, will be prepared by the division director. A copy shall be
maintained on file by each property custodian for each property
management area, and a copy will be forwarded to the SEMO.

3.6.4.4 The SEMO shall prepare a report annually for the Center
Director, describing the previous calendar year's walk-through program
and results.

3.6.5 Sensitive Equipment Items

3.6.5.1 Equipment items that have an acquisition cost of \$500 or more
and are easily pilfered and desirable for personal use shall be
identified as sensitive equipment. Weapons and other potentially
hazardous equipment items, that are dangerous in nature, shall be
controlled as sensitive, regardless of cost or value.

3.6.5.2 Appendix C of this NPR identifies required items of equipment
that must be controlled as sensitive. The attached chart should help in
determining what should be controlled and what should not be controlled.
Additionally, Center policy can prescribe more rigorous requirements
than Agency policy but cannot prescribe less rigorous policy. (For
example, you could choose to control a camera even if it is less than
\$500. However, if it is more than \$500, you must control it). The
Center SEMO must submit a request to NASA Headquarters to add items to
the Agency's Sensitive Item List, with detailed justification to support
the item(s) being considered sensitive. Approval or disapproval will be
made by the NASA Headquarters, LMO.

3.6.5.3 Each property custodian shall establish the following special
controls for the sensitive items that have been identified in their
respective NEMS account(s):

a\. Sensitive items shall be assigned to a primary user. The property
custodian will obtain the user\'s signature on NASA Form 1602. After
completion, the form will be submitted to NEMS Control (See Appendix
A.54) for processing if the property custodian module is not used. There
are two property custodian modules, mainframe and Web-based. The primary
user assumes responsibility for surveillance of the sensitive items and
should report to the property custodian any changes of equipment status,
location, or user.

b\. Sensitive items will be secured, when practical, when not in use.

c\. Sensitive items will not be out of the possession or control of the
person to whom they are assigned.

d\. All loans of sensitive items will be revalidated as required
policies; however, sensitive items in Center-wide pools are exempt from
this revalidation requirement.

e\. The assigned primary user must be able to produce all sensitive
items not on current documented loan within 24 hours.

f\. Due to their inherent potential for being pilfered, special care
should be taken to ensure that underutilized or idle sensitive items are
properly secured.

3.6.5.4 At the discretion of the SEMO, an unannounced special inventory
of sensitive items may be conducted. The inventory shall be performed by
property management personnel or contractor representatives. This
special inventory shall verify that special controls have been
established and that all sensitive items are accounted for as required.
The SEMO can provide the listings by using NEMS Report 140 (Custodian
Account Property Record) selecting sensitive items only.

3.6.6 Cannibalization of Equipment

3.6.6.1 With prior written request from the responsible division
director, equipment may be cannibalized (See Appendix A, Definition of
Terms) when justified to fulfill equipment requirements. Written
approval from the SEMO has to be obtained prior to disassembly of
equipment. This approval shall be documented using NASA Form 1617,
Request for Cannibalization or Modification of Controlled Equipment.

3.6.6.2 Requests will include the equipment control number and a brief
description to include the make, model, serial number, and value of the
item to be cannibalized. Additionally, it shall include a brief
statement as to the reason for the cannibalization and whether or not
the cannibalized item will be retained for future use. Cannibalization
or modification requirements do not apply to the removal and replacement
of system components for operational purposes.

3.6.6.3 An approved NASA Form 1617 shall be submitted to the NEMS
Equipment Manager for appropriate adjustment of the equipment control
record. Any residual unused materials will be turned in for
reutilization or disposal. When cannibalized capital equipment is
removed from the NEMS database, the adjustments will be submitted to the
Center financial management organization.

3.6.6.4 In those cases where an item that has been modified will
continue to function and only the value has changed, the new value for
the item still must be reported to the Equipment Manager on NASA Form
1617 for adjustment of the equipment and financial control record, as
appropriate. Modifications to equipment require an adjustment to the
equipment and financial records when the modification cost will affect
the value of the item to increase above \$99,999 or decrease below
\$100,000. The SEMO will ensure notification to the Deputy Chief
Financial Officer of the cost change.

3.6.6.5 Normally, equipment available from other NASA Centers,
contractors, or other Government agencies will not be acquired solely
for cannibalization. Exceptions to this rule will require directorate or
higher-level approval. The NEMS Equipment Manager will maintain the
approval document in the equipment entry reference number microfilm or
in the microfiche source document file for the item(s) acquired.

3.6.7 Retention of Inactive Equipment. The nature of NASA operations
occasionally makes it desirable to retain equipment, not in current use,
for a specified time for other potential needs before further
disposition. Equipment may be retained in an inactive status by the
Center for one of the following specific purposes and under the
conditions indicated.

3.6.7.1 Firm Future Requirement. A firm future requirement may be
considered a specific purpose for equipment retention, provided that the
equipment has been identified for use on a project, program, or other
work activity, the planning of which has been approved by the Center
Director. All equipment held for firm requirements shall be recertified
annually by the director of the owning organization.

3.6.7.2 Heritage Asset. Equipment may only be classified as a heritage
asset and retained by the Center in an inactive status if it meets one
or more of the following criteria: (See FMR Volume 6, Chapter 4, for
Heritage information).

a\. Historical or natural significance.

b\. Cultural, education, or artistic (e.g., aesthetic) importance.

c\. Significant architectural characteristics.

3.6.7.3 Retention of equipment designated by the Center Director for
emergency standby purposes may be justified. The director of the owning
organization, for continued retention, will review this equipment
annually.

3.6.8 Reporting and Control of Inactive Equipment Retained by NASA
Centers

3.6.8.1 The equipment held in an inactive status shall be reported to
the SEMO for further processing in accordance with existing storage
guidelines:

a\. The turn-in document will be annotated to reflect the purpose for
retention and the length of time the equipment is to be held.

b\. The equipment transaction documentation will reflect pertinent data
relating to the inactive designation of the equipment, including the
results of cyclic review and recertification.

c\. All inactive equipment subject to reutilization screening shall be
classified as status code B (See Appendix F).

d\. Equipment that is not readily movable or is specifically located for
emergency purposes should be held in place and tagged to indicate its
inactive status.

e\. For continued retention of inactive equipment, an annual written
recertification shall be provided by the division director or designee
of the storing organization.

f\. The SEMO shall submit, monthly, a list of all inactive equipment to
the Deputy Chief Financial Officer so that the item may be removed from
the financial records.

3.6.9 Unconditional Donations of Property to NASA from Entities other
than Federal Agencies

3.6.9.1 NASA may accept unconditional donations of property from
external entities (i.e. private industry, academia) provided that the
external entity submit, in writing to the Center, that the donation is
unconditional.  The written statement from the external entity should
also specify the property being donated to include an item description,
model number, serial number, and fair market value.  Additionally, the
NASA technical organization wanting the property should submit a
justification to the Equipment Management organization stating how the
property will be utilized.  The written statement from the external
entity along with the justification from the technical organization will
be submitted to the Equipment Management organization.  The Equipment
Management official will review the statement from the external entity
and the justification from the technical organization.  If the
justification indicates that the property will be actively utilized, all
documentation will be forwarded to the Center\'s Office of the Chief
Counsel to review.  If the Office of the Chief Counsel indicates there
is no legal reason why the property cannot be accepted, SEMO approval
will be obtained.  After SEMO approval, the entity will be notified to
release the property to NASA.  Once received by the Center, the property
will be processed in accordance with NPR 4200.1.

3.6.10 Artifacts

3.6.10.1 The handling of artifacts shall follow the procedures stated in
NPR 4310.1, Identification and Disposition of NASA Artifacts.

**CHAPTER 4: Equipment Physical Inventories**

**4.1 Inventory Scheduling and Personnel**

4.1.1 Purpose. To define requirements and procedures for conducting
physical inventories of Center equipment, the following is provided:

a\. Objectives of the inventory process.

b\. Types of inventories.

c\. Inventory schedules.

d\. Personnel and resources required to conduct equipment physical
inventories.

4.1.2. General Objectives

4.1.2.1 As an essential element of the NASA Equipment Management
Program, physical inventories provide a means for the following:

a\. Determining the completeness and accuracy of the equipment records
system and financial equipment accounts.

b\. Reconciling and adjusting the equipment records and financial
accounts as required.

c\. Assessing the effectiveness of equipment control procedures and
operations.

d\. Obtaining information needed for accomplishing broader aspects of
equipment management, such as equipment utilization and repair.

4.1.2.2 Physical inventories are designed to achieve the following
objectives, depending on the type of inventory being taken:

a\. Verifying that recorded equipment is still on hand.

b\. Confirming or determining current user location and custodial
responsibility for equipment.

c\. Identifying unrecorded equipment that qualifies for control.

d\. Locating or identifying missing equipment.

e\. Identifying obviously unused or underutilized equipment.

f\. Identifying equipment obviously in need of repair or rehabilitation.

4.1.3 Types and Frequency of Inventories

4.1.3.1 A complete (wall-to-wall) physical inventory of controlled
equipment shall be taken at each Center at least once every three years.
The inventory method, at a minimum, must be designed to achieve the
objectives stated herein, with reconciliation being completed once every
three years. Each Center may utilize or design an inventory by exception
process to achieve a complete inventory. The inventory-by-exception
(4.1.3.1.d) development process is at the discretion of the Center\'s
SEMO.

a\. The inventory may be accomplished through a combination of various
methods such as visual inspections, custodian validations, and NEMS
equipment transactions or conducted through the traditional wall-to-wall
visual inspection and recording.

b\. The inventory methodology specifically developed by the Center NEMS
Equipment Manager will work in concert with Center-unique processes.

c\. A cyclic inventory must achieve the objectives as set forth in
paragraph 4.1.2.2. An inventory that merely serves to locate items
currently charged to a property management account area does not meet
the requirement for a complete physical inventory.

d\. Inventories by exception are conducted using various transactions
involving "touching" the equipment, such as moves, calibrations, and
maintenance actions.

e\. Items on loan to other Centers or organizations outside NASA will be
identified in NEMS by \"out code\" status. NEMS accepts those items in a
NEMS out code status as inventoried and automatically assigns an
inventory date. Those items identified on NEMS Report 772, Items in Out
Code Status, must be certified on the report, however, as in a valid out
code, i.e., review storage document, loan document, shipping document.

f\. At the SEMO's discretion, unannounced inventories of the Center\'s
sensitive items may be requested. The inventory shall be conducted by a
disinterested official ( person not assigned to the Logistics Management
Division) to ensure that proper controls for sensitive items are in
place. The findings will be documented and filed. The NEMS Equipment
Manager will assign a responsible person to ensure that corrective
actions are taken in a timely manner.

4.1.3.2 When a property custodian account changes hands, the outgoing
and incoming custodians must jointly conduct a full inventory of the
account before acceptance by the incoming custodian. The inventory can
be waived if both the incoming and outgoing property custodians agree
and receive written approval from the division directors and Equipment
Manager. Documentation to support this agreement will be retained by the
Equipment Manager.

4.1.3.3 Special inventories may be conducted at the discretion of the
Center's SEMO. The special inventory would be designed to achieve one or
more objectives, depending on the purpose from which the inventory is
taken. The results of special inventories can also be credited to cyclic
and the property custodian's inventory requirements.

**4.1 Inventory Schedule**

4.1.1 The NEMS Equipment Manager shall develop a written schedule and
plan, including allowances for contingencies, for accomplishing all
physical inventories. A copy of the inventory schedule will be forwarded
to the NASA Headquarters, Logistics Management Division.

4.1.2 Preinventory reports are provided in the NEMS inventory module to
aid each Center in the development of its inventory schedule.

4.1.3 Current information comparing the status of inventory progress to
the schedule shall be maintained and used to revise the schedule, when
necessary, to ensure the completion of all inventories.

4.1.4 The inventory schedule may be manual or automated and will
contain, at a minimum, the data elements listed below:

a\. Identification.

b\. Name of property custodian.

c\. Identification of the custodian account.

d\. Location of accounts.

e\. Events.

f\. Scheduled start date.

g\. Actual start date.

h\. Notifications.

1\) Date of preinventory notification.

2\) Date custodian notified of results.

3\) Date division notified of results.

4.1.5 Inventory Personnel

4.1.5.1 The SEMO will designate, in writing, individuals responsible for
conducting complete cyclic, sensitive, and special inventories. These
individuals will be fully instructed in inventory techniques
technologies. The property custodian, the NEMS Equipment Manager,
program/project directors, or other persons, as deemed necessary, will
assist in physical inventories. Property custodians will provide
custodian account validations as appropriate.

**4.2 Inventory Procedures**

4.2.1 Purpose. This section establishes basic procedures required to
prepare for and complete cyclic, sensitive, special, and new property
custodian inventories. The detailed operating instructions used by each
Center must, at a minimum, incorporate these procedures.

4.2.2 Preinventory Actions for Cyclic Inventory

4.2.2.1 The SEMO shall provide written notification to the property
custodian and division director of the planned inventory at least 30
calendar days in advance. The notification will include the following:

a\. Instructions regarding actions to be taken to expedite the
inventory.

b\. The inventory method to be used and advising the property custodian
and division director or chief of the anticipated impact to the
organization.

c\. Ensure that upon request the property custodian can provide a
current record of all controlled equipment charged to the custodian\'s
area.

4.2.3 Actions During an Inventory

4.2.3.1 The inventory team will conduct the inventory discreetly and
with minimal disturbance to the organization.

4.2.3.2 Items found borrowed from other management areas will be
reconciled by the responsible property custodian.

4.2.3.3 Equipment on loan or lease from organizations outside the Center
should contain bar-coded loan or lease tags, which will be identified or
scanned as they are found within the inventory accounts. Loan and lease
items shall be processed as inventory updates if the equipment account
and location correspond to the account and location recorded in the NEMS
database.

4.2.3.4 Equipment that appears to be excess, worn out, or in need of
repair will be noted during an inventory. The results of the inventory
report will highlight the finding for follow-up action by the
appropriate property custodian or equipment user.

4.2.3.5 Equipment that appears to be unused or underutilized shall be
noted during an inventory. The results of the inventory report will
highlight the finding for the appropriate property custodian to obtain
user verification of status or return.

4.2.3.6 Equipment found on station (FOS) during the inventory, which
meets the criteria for control, shall be identified to the using
organization, tagged, and recorded during the inventory using NASA Form
1618, FOS Investigation Report.

4.2.4 Cyclic Inventory Reconciliation and Adjustment

4.2.4.1 Reconciliation and adjustment to the NEMS database must be
accomplished on a timely basis as the inventory progresses, but in no
event take longer than 60 calendar days from the completion of the
physical inventory. All reconciliation and adjustments to the inventory
will be supported by documentation.

4.2.4.2 The NEMS Equipment Manager will take actions to input data on
controlled equipment found during the inventory to the appropriate
equipment and financial records. This action must be taken within 30
calendar days after such discovery. A Report of Survey will be initiated
for items not located. []{.mark}

4.2.5 Sensitive-Item Inventory

4.2.5.1 Sensitive-item inventories are conducted at the discretion of
the Center SEMO. NEMS Report 190 can generate a 20 percent sample of the
Center's sensitive items for use as a spot check. NEMS will randomly
select the items from the Center database and sort the sample by
property custodian account.

4.2.5.2 The sensitive-item inventory requires an actual sighting of the
sensitive item. A separate sensitive inventory file should be
established to document the results of each sensitive-item inventory. A
custodian account that cannot produce all sensitive items within 24
hours after the spot check will undergo a special review by the NEMS
Equipment Manager to determine if a 100 percent, sensitive-item
inventory is required.

4.2.5.3 Unannounced spot checks should only be conducted if equipment
control factors are problematic or the NEMS Equipment Manager determines
otherwise.

4.2.5.4 The sensitive-item inventory will be considered complete when
all items are accounted for and Survey Reports are submitted for missing
items.

4.2.6 New Property Custodian Inventory

4.2.6.1 When a property management account is assigned to a new property
custodian, a 100- percent inventory should be taken of the area. The
outgoing and incoming custodians have the responsibility to perform this
inventory together; however, inventory personnel may be contacted for
assistance. Prior to the outgoing property custodian's departure, the
director or chief shall submit a statement to the NEMS Equipment Manager
and incoming property custodian. The statement will confirm that all
items were found or reports of surveys were submitted. Each Center will
set its own policy and procedure regarding the use of the standard
inventory scanners and bar-code readers for this type of inventory.

4.2.7 Other Special Inventory. Special inventories may be conducted as
directed by the SEMO.

**4.3 Inventory Reports and Files**

4.3.1 Purpose. This section prescribes the inventory reports to be
provided to the division directors, the property custodians, and the
Center Director. It also prescribes the cyclic inventory files to be
maintained for each property management area.

4.3.2 Inventory Reports to Division Directors and Property Custodians

4.3.2.1 Within 30 working days after completion of the inventory of a
property management area or grid location, the SEMO will provide the
property custodian(s) and the appropriate division director a report of
inventory results. The report may be submitted in an electronic form for
streamlined communication objectives and shall, at a minimum, include
the following:

a\. Start and completion dates of the inventory.

b\. Number and value of recorded items charged to the property custodian
account that was found in the area.

c\. Number and value of recorded items charged to the property custodian
account that were not found in the area and not covered by documented
loans.

d\. Number and value of unrecorded items found in the area that meet the
criteria for control.

4.3.2.2 The property custodian has 30 working days to correct cited
discrepancies and submit survey reports, unless the SEMO grants an
extension in writing.

4.3.2.3 After all accounts within a division or grid location have been
inventoried, the SEMO will provide the responsible division director
with a summary report of all accounts within the division.

4.3.3 Inventory Results to Management

4.3.3.1 A report indicating the results of the physical inventory,
including sensitive-item inventories, during the inventory period shall
be prepared annually by the Center SEMO. This report will be submitted
within 90 days to the Center Director or one-level subordinate to the
center director. A copy shall be forwarded to the NASA Headquarters,
Logistics Management division, annually, no later than December 15. This
report shall include the following:

a\. Number of property management areas and number of items scheduled
for inventory during the period.

b\. Number of property management areas for which a physical inventory
was completed during the period.

c\. Number of items and value of equipment inventoried.

d\. Number and value of items added to the records as a result of the
physical inventory.

e\. Number and value of lost items surveyed from the records as a result
of physical inventory.

f\. Number and value of items that were previously surveyed and added to
the records as a result of the physical inventory.

g\. Conclusions and any procedural changes initiated following analysis
of the inventory results.

4.3.3.2 The final report for each cycle will be accompanied by a summary
report that reflects the overall results of the inventory for the
period. Center senior management, SEMO, and the Equipment Manager at
NASA Headquarters should also be informed of reasons for large increases
or decreases in adjustments, additions, and surveys.

4.3.4 Inventory Files

4.3.4.1 In addition to the overall inventory schedule and plan
prescribed in this section, files will be established and maintained for
each property management custodian area. Each file should contain all
necessary documents to clearly indicate the status and results of the
inventory in each area. Examples of documents to be included are the
following:

a\. Notification to the property custodian of the schedule for
inventory.

b\. Designation of individuals responsible for taking the inventory.

c\. Upon request, a listing of items charged to the area at the
beginning of the inventory; the size of the listing for a large account
may prohibit retention in the central file.

d\. Upon request, a report to the property custodian and the respective
division director or chief of the inventory results, as prescribed in
paragraph 4.3.3.

e\. NEMS listings validated by the property custodian.

4.3.4.2 A new file for each property management area or custodian
account shall be established for each inventory cycle. File folders
generated during the preceding inventory cycle will be retained at the
Center. Inventory cycle files over five years old may be destroyed.

**CHAPTER 5. Self-Assessment**

**5.1 Self-Assessments and Headquarters Site Visits**

5.1.1 Purpose. To provide requirements for conducting functional
self-assessments. Equipment management self-assessments are internal
examinations by a Center functional manager of the performance of an
area, as well as its compliance with established laws, regulations,
policies, and requirements. Headquarters site visits are intended to
support the Center equipment management programs by providing
specialized technical or managerial support.

5.1.2 General Policy

5.1.2.1 Each NASA Center shall develop an internal self-assessment
program. The program shall include a review of the Center\'s Equipment
Management Program in sufficient detail to determine the adequacy of
equipment accountability and control.

5.1.2.2 The self-assessment team, with the support of the NEMS equipment
manager, shall perform the self-assessment, using the Center SEMO's
approved methods. The self-assessment should examine the integrity of
the equipment management program and ensure that the requirements
established in NPR 4200.1, Equipment Management Procedural Requirements,
are being efficiently accomplished. Self-assessments may be tailored to
accommodate individual and unique equipment accountability and control
requirements of the Center.

5.1.3 NASA Headquarters Site Visits

5.1.3.1 Each NASA Center will be afforded the opportunity for special
technical assistance from NASA Headquarters through site visits.
Headquarters conducts site visits in response to equipment management
problems that are potential material weaknesses; in support of less
critical special needs of the Center equipment management program; or,
at the invitation of the SEMO, in support of the equipment management
self-assessment.

5.1.4 Site Visit Responsibilities

5.1.4.1 The SEMO is the principal management contact associated with
site visits and is responsible for the following:

a\. Coordinating with the Lead, Logistics Management Team, and NASA
Headquarters, in support of the site visit.

b\. Implementing equipment management policy improvements identified by
the site visit.

c\. Providing technical and functional support to the site visit team.

d\. Implementing operational improvements identified by the site visit.

5.1.4.2 The Headquarters (Agency) Logistics Manager is the principal
functional contact associated with the site visits. The Logistics
Manager is responsible for:

a\. Coordinating the equipment management operations and workload to
support the site visits.

b\. Accomplishing any necessary NEMS extracts in preparation for the
site visit.

**APPENDIX A: DEFINITION OF TERMS**

**A.1** Administrative Property - Property that is not specifically
scientific or technical in nature or equipment that is being used
primarily for administrative purposes.

**A.2** Agency-Peculiar Property - As set forth in the FAR Subpart
45.301, personal property that is peculiar to aeronautical and space
programs of NASA and is not otherwise included in the categories of
property as set forth in FAR Subpart 45.101. It includes such items as
aircraft, engines, space vehicles, and other similar components and
related support equipment furnished for use as a standard or model to
establish equipment compatibility, or for such other similar reasons as
may be determined by the contracting officer.

Note: This definition applies to contractor-held property so classified
for contract purposes. Upon transfer or delivery to the Government, it
becomes equipment or material. If such property is later provided to a
contractor, it is again considered to be Agency-peculiar property.

**A.3** Artifacts - Artifacts, as applied to NASA, are unique objects
that document the history of the science and technology of aeronautics
and astronautics. Their significance and interest stem mainly from their
relation to the following: historic flights, programs, activities, or
incidents; achievements or improvements in technology; our understanding
of the universe; and important or well-known personalities.

**A.4** Auxiliary or Accessorial Automatic Data Processing (AADP)
Equipment - Auxiliary or accessorial ADP equipment including plotters,
tape cleaners, tape testers, data conversion equipment, source data
automation recording equipment (optical character recognition devices,
microfilm, and other data acquisition devices), or computer performance
evaluation equipment designed for use with digital, analog, or hybrid
computer equipment, either cable or modem connected, wire connected, or
stand alone, and whether selected or acquired with a computer or
separately.

**A.5** Borrows - Term used to identify a loan to a NASA entity. This
includes employees, onsite contractors, or another NASA Center.

**A.6** Calibration - The process of determining the deviation from a
standard so as to ascertain the proper correction factors for measuring
instruments.

**A.7** Cannibalization - The removal of serviceable parts, components,
or assemblies from one piece of equipment to be used as replacement
parts in other equipment or to fabricate another item.

**A.8** Capital Equipment - An item of equipment with an acquisition
cost of \$100,000 or more that has an estimated service life of two
years or more, that will not be consumed in an experiment, and that most
generally will be identified as an independently operable item (See FMR
Volume 6, Chapter 4).

**A.9** Centrally Reportable Equipment - Plant equipment, special test
equipment including components, special tooling, and nonflight space
property, including ground support equipment that is (1) generally
commercially available and used as a separate item or component of a
system, (2) is valued at \$5,000 or more, and (3) is identifiable by a
manufacturer and model number.

**A.10** Child/Children - Controlled or noncontrolled component(s) of a
system.

**A.11** Collateral Equipment - Encompasses building type equipment,
built-in equipment, large, substantially affixed equipment or property,
and is normally acquired and installed as a part of a facility project.
It includes the following:

a\. Building-Type Equipment - Equipment that is normally required to
make a facility useful and operable. It is built in or affixed to the
facility in such a manner that removal would impair the usefulness,
safety, or environment of the facility. Such equipment includes
elevators, heating, ventilating, and air-conditioning systems;
transformers; and compressors and other like items generally accepted as
being an inherent part of a building or structure and essential to its
utility. It also includes general building systems and subsystems such
as electrical, plumbing, pneumatic, fire protection, and control and
monitoring systems.

b\. Built-in or Large, Substantially Affixed Equipment or Property - The
unit of equipment or property of any type other than building-type
equipment that is built in, affixed to, or installed in real property in
such a manner that the Center cost, including special foundations or
unique utility services or facility restoration work required after its
removal, exceeds \$100,000.

NOTE: For capitalization purposes, the costs and the specific Center of
the above equipment are generally included in the real property
accounts. However, the cost of affixed equipment classified as personal
property upon completion of a project will be recorded as such if it
otherwise meets the capitalization criteria in FMR Volume 6, Chapter 4.

**A.12** Component Equipment Item - An item of equipment that is used as
a subassembly to a larger assembly. Parts are not to be considered
component equipment items.

**A.13** Condition Code - A code assigned to indicate the physical
condition and usability of equipment.

**A.14** Contract Number - A unique identifier assigned to each NASA
contract, pursuant to the NASA FAR Supplement 1804.71.

**A.15** Contracting Officer - Any person with the authority to enter
into, administer, and/or terminate contracts and make related
determinations.

**A.16** Contracting Officer Technical Representative - An authorized
representative of a contracting officer acting within the limits of
his/her authority.

**A.17** Contractor-Acquired Equipment - Equipment procured or otherwise
provided by the contractor for the performance of a contract, title to
which is vested in the Government.

**A.18** Controlled Equipment - All nonsensitive equipment with an
acquisition cost of \$5,000 or more that has an estimated service life
of two years or more, which will not be consumed or expended in an
experiment. Also, selected items of equipment with an acquisition cost
less than \$5,000 that are designated and identified as sensitive, by
the holding Center, such as weapons and certain types of hazardous
devices.

**A.19** Custodial Records - Written memoranda or identifying checks of
any description or type used to control items of equipment such as
requisitions, NASA Form 1602, transaction documents, tool checks, stock
record books, or machine records.

**A.20** Disposal - The disposition of personal property that is surplus
through donation, sale, abandonment, or destruction.

**A.21** Duplicate Records - An Equipment Control Number (ECN) held
accountable by two different sub-Center codes in the NEMS CDB at the
same time.

**A.22** Entry Reference Number - A unique control number generated by
NEMS for each transaction input to NEMS.

**A.23** Equipment - An item of personal property, generally in the
configuration of a mechanical, electrical, or electronic apparatus or
tool, that normally costs in excess of \$100, and that may perform a
function independently or in conjunction with other equipment or
components.

**A.24** Equipment Control - The maintenance of records or documents of
equipment transactions that provide information such as item
identification number, description, and current physical location.

**A.25** Equipment Control Number (ECN) - The identification number
assigned and affixed to each item of equipment for control purposes by a
tag or decal number.

**A.26** Equipment Control Number Register - A written or electronic
record of the assignment of ECNs.

**A.27** Equipment Pool - The collection, at a central point, of
equipment under control for issue to individuals or organizations.

**A.28** Equipment Record - A record maintained by the Supply and
Equipment Management Officer that provides selected information about
each item of controlled equipment.

**A.29** Equipment Reutilization Screening - The examination of existing
equipment documentation for the purpose of fulfilling equipment
requirements through reassignment.

**A.30** Equipment Systems - Assemblies of component equipment items
designed and operated to accomplish specific functions.

**A.31** Equipment Utilization Program - A program to ensure maximum
effectiveness in the management and utilization of NASA equipment.

**A.32** Excess Turn-In (see NASA Excess) - Personal property determined
unnecessary to the need and discharge of the holding organization and,
therefore, returned to the property organization for reutilization or
disposal.

**A.33** Fabricated Item - Personal property that is manufactured for,
or constructed by, the using organization. Fabricated items meeting the
controlled equipment criteria will be controlled.

**A.34** Facilities Contract - Pursuant to NASA FAR Supplement 45.301, a
contract under which Government facilities are provided to a contractor
or subcontractor by the Government for use in connection with performing
one or more related contracts for supplies or services. It is used
occasionally to provide special tooling or special test equipment.
Facilities contracts may take the form of a \"facilities acquisition
contract,\" \"facilities use contract,\" or \"consolidated facilities
contract.\"

**A.35** Federal Disposal System - A replacement of FSS-23 - The GSA
Excess and Surplus Personal Property Disposal System. FSS-23 was
implemented in 1975 as a computer system to track and control General
Service Nationwide inventory of reportable excess and surplus property.

**A.36** Federal Supply Group (FSG) - A four-digit property
identification code describing commodity classification. See Federal
Cataloging Handbook H2 series.

**A.37** Fixed Assets - Assets of a permanent character having a
continuing value such as land, buildings, and other structures and
facilities, including collateral and noncollateral equipment meeting the
criteria for capitalization.

**A.38** Flight Hardware - Property that is certified for use in space
flight operations.

**A.39** Found on Station (FOS) - Any equipment meeting the criteria for
control for which financial or physical accountability has not been
established.

**A.40** Government Furnished Equipment - Equipment furnished to a
contractor, or acquired by the contractor, as in Contractor-Acquired
Equipment.

**A.41** Government Office Equipment Including Information Technology -
Includes, but is not limited to: personal computer and related
peripheral equipment and software, library resources, telephones,
facsimile machines, photocopiers, office supplies, Internet connectivity
and access to Internet services, and e-mail. This list is provided to
show examples of office equipment as envisioned by the Recommended
Executive Branch Model Policy/Requirements on "Limited Personal Use" of
Government Office Equipment Including Information Technology. Executive
Branch managers may include additional types of office equipment.

**A.42** Heritage Asset - Equipment may be classified as a heritage
asset and retained by the Center in an inactive status, provided the
item is of historical and natural significant; cultural, education or
artistic (e.g., aesthetic) importance; or has significant architectural
characteristics.

**A.43** Leased Equipment - Equipment that has been conveyed by or to
NASA by contract for a certain consideration of payment of rental fee.

**A.44** Line Replaceable Unit (LRU) - A fairly expensive spare part
that can be refurbished or repaired quickly (after each use) to restore
a large system to service.  

**A.45** Loaned Equipment - Equipment in temporary use to or from
non-NASA entities.

**A.46** Maintenance and Repair of Equipment - Recurring day-to-day,
periodic, or scheduled activity required to keep equipment in working
condition or to resolve it or its components to a condition
substantially equivalent to its originally designed capacity and
efficiency.

**A.47** Model Number - The identification of a single type of item of a
manufacturer\'s product line.

**A.48** Modification - A basic or functional change made to an
equipment item to give a new orientation or to serve a new purpose.

**A.49** NASA Excess - Personal property that is determined to be
unnecessary to the needs and discharge of the responsibilities of all
NASA Centers.

**A.50** NASA FAR Supplement - A document that, with the Federal
Acquisition Regulation (FAR), establishes uniform policies and
procedures relating to the procurement of property and services. The
NASA FAR Supplement applies to all purchases and contracts made by NASA
for property and services that obligate appropriated funds.

**A.51** NEMS Central Data Base (CDB) - Provides equipment visibility
for screening and redistributing NASA equipment valued at \$5,000 or
more and locates specific equipment items or data for managerial
purposes. The NEMS CDB is comprised of each Center's NEMS. Centers
submit NEMS transactions processed on a daily basis to the NEMS CDB for
update. The NEMS CDB tracks transfers, provides screening and ad hoc
inquiry functions, and produces management reports as requested.

**A.52** NEMS Configuration Control Board - A permanent technical
control group that is responsible for maintaining NEMS configuration
control. Membership is comprised of a representative from each Center
and NASA Headquarters. The Board Chairperson convenes the group as
necessary.

**A.53** NEMS Control - That segment of the equipment management
organization that processes equipment transactions and generates
applicable forms and reports (See Transaction Document).

**A.54** NEMS Equipment Manager - The key individual(s) within the
Center equipment management organization interfacing with the property
custodians and equipment users. Maintains and controls equipment records
and assists custodians and users in property procedures for and
documentation of equipment actions.

**A.55** Noncapital, Nonsensitive Controlled Equipment - Items with an
acquisition cost between \$5,000 and \$99,999 and not identified as
sensitive items.

**A.56** Noncontrolled Equipment - Items of equipment having an
acquisition cost of less than \$5,000 (excluding items which have been
designated as sensitive items).

**A.57** Non-reportable Property - Excess personal property that does
not meet the minimum requirements as specified in NPR 4300.1, NASA
Personal Property Disposal Procedural Requirements.

**A.58** Parent Record - A NEMS record used to combine the value of
Children to facilitate financial processes. It is not a physical piece
of equipment.

**A.59** Personal Property - Property of any kind, including equipment,
materials, and supplies, but excluding real property.

**A.60** Plant Clearance Automated Reutilization Screening System
(PCARSS) - A DOD system through which property no longer needed by
Government contractors for performance of contracts is made available
for reuse or final disposition (contractor's inventory).

**A.61** Plant Clearance - All actions related to the screening,
redistribution, and disposal of contractor inventory from a
contractor\'s plant or work site. Contractor\'s plant includes a
Government facility when contractor-operated.

**A.62** Plant Equipment - Personal property consisting of equipment,
machine tools, test equipment, furniture, vehicles, and accessory and
auxiliary items but excluding special tooling and special test equipment
that are used, or is capable of use, in the manufacturing of supplies,
in the performance of services, or for any administrative or general
plant purpose. Note: This definition applies only to contractor-held
property so classified for contract purposes.

**A.63** Property Accountability - A record of transactions,
systematically maintained, which at any given time will disclose item
identification, quantity, cost, location, and custodial responsibility
of personal property controlled by a Center or a contractor.

**A.64** Property Administrator - An individual duly designated by the
contracting officer to administer contract requirements and obligations
relative to Government property. The Property administrator is an
authorized representative of the contracting officer (See NASA Far
Supplement Subpart 1845.72).

**A.65** Property Custodian - An individual organizationally or
geographically assigned who is responsible for all controlled equipment
assigned to a designated property management area.

**A.66** Property Disposal Officer - The official appointed by the
Center Director who is responsible for managing the Center\'s screening,
redistribution, and disposal functions.

**A.67** Property Management Area - An area of property management
responsibility by organization or by a geographic area, selected by the
Supply and Equipment Management Officer in conjunction with the head of
the organizational unit, for the assignment of a property custodian for
property control.

**A.68** Property Survey Board - Composed of two or more members (with
alternates as appropriate) and a chairperson to investigate and make
recommendations to division directors and other appropriate Center
officials concerning the loss, damage, or destruction of controlled
equipment exceeding \$5,000 in acquisition value.

**A.69** Purchase Request or Purchase Order - A document utilized to
state requirements for and to authorize purchase of goods and services.

**A.70** Redistribution - The reassignment of equipment for other use
with appropriate transfer of accountability.

**A.71** Salvage - Personal property that has a degree of value in
excess of its basic material content, but is in such condition that it
has no reasonable prospect for any purpose as a unit (either by the
holding or any other Federal agency). Furthermore, its repair or
rehabilitation if estimated to cost in excess of 65 percent of
acquisition cost would be considered \"clearly impractical.\"

**A.72** Screen by Computer and Request Excess by Electronic
Notification (SCREEN) - An interactive, electronic bulletin board that
allows Federal agencies to search, freeze, and request transfer of
excess property.

**A.73** Sensitive Item - An item of equipment that, due to its
pilferable nature or the possibility of it being a hazard, requires a
stringent degree of control. A sensitive item can be capital or
noncapital equipment. Generally, sensitive items are controlled at an
acquisition cost of \$500 or more (See Appendix C).

**A.74** Shipping Document/Request for Shipping - The authorization and
acceptance document that accompanies equipment when it is being sent to
another location.

**A.75** Spare - An item peculiar to a system or an end item and held in
reserve.

**A.76** Special Test Equipment - As set forth in the FAR Subpart
45.101, either single or multipurpose integrated test units engineered,
designed, fabricated, or modified to accomplish special-purpose testing
in performing a contract. A testing unit consists of all electrical,
electronic, hydraulic, pneumatic, mechanical, or other items or
assemblies of equipment including standard or general-purpose items or
components that are mechanically, electrically, or electronically
interconnected so as to become a new functional entity. This causes the
individual item or items to become interdependent and essential in the
performance of special-purpose testing in the development or production
of particular supplies or services. The term \"special test equipment\"
does not include the following: material, special tooling, buildings and
non-serviceable structures (except foundations and similar improvements
necessary for installing special test equipment), and plant equipment
items used for general plant-testing purposes.

Note: This definition applies only to contractor-held property so
classified for contract purposes.

**A.77** Status Code - A key to the relative availability of NEMS
reportable equipment by codes, A (active), B (inactive assigned).

**A.78** Surplus Personal Property - Personal property not required for
the needs and the discharge of the responsibilities of all Federal
agencies.

**A.79** Survey Report - A report of administrative action taken to
investigate and review the loss, damage, or destruction of Government
property and to assemble pertinent facts and determine the extent of
such loss, damage, or destruction.

**A.80** System - A group of interacting interrelated or interdependent
components (Children) forming a complex whole (system); multiple
components and parts put together to perform a function. It is
represented in NEMS as a Parent record.

**A.81** Transaction - Each addition, deletion, or change to an
equipment record in NEMS.

**A.82** Transaction Control Document (NASA Form 1602) - The document
generated by NEMS that controls property custodian equipment
transactions after initial entry into the NEMS data base and that serves
as the property custodian\'s detailed record for each assigned equipment
item.

**A.83** Unconditional Donations - Equipment provided to NASA as a
cost-free donation from a non-Federal source.

**A.84** Unique Equipment - Specialized equipment items, or equipment
systems normally not commercially available, that are identified as
unique when the equipment becomes inactive.

**A.85** Virtual Tagging - The concept of assigning a NEMS tag when the
tag cannot be attached.

**APPENDIX B: EQUIPMENT TYPE ACCOUNTS**

**Title and Definition**

1551 Mechanical Equipment. This category includes equipment identifiable
to Federal Supply (FS) groups:

FS Group Description

  ---- ------------------------------------------------------------------
  28   Engines, Turbines, and Components

  30   Mechanical Power Transaction Equipment

  31   Bearings

  35   Service and Trade Equipment

  36   Special Industry Machinery

  37   Agricultural Machinery and Equipment

  38   Construction, Mining, Excavating, and Highway Maintenance
       Equipment

  41   Refrigeration, Air Conditioning, and Air Circulating Equipment

  42   Fire Fighting, Rescue, and Safety Equipment

  43   Pumps and Compressors

  44   Furnace, Steam Plant, and Drying Equipment, and Nuclear Reactors

  45   Plumbing, Heating, and Sanitation Equipment

  46   Water Purification and Sewage Treatment Equipment

  47   Pipe, Tubing, Hose, and Fitting

  48   Valves
  ---- ------------------------------------------------------------------

1552 Laboratory Equipment. This category includes equipment identifiable
to FS groups:

FS Group Description

  ---- ------------------------------------------------------------------
  65   Medical, Dental, and Veterinary Equipment and Supplies

  66   Instruments and Laboratory Equipment

  68   Live Animals
  ---- ------------------------------------------------------------------

1553 Shop Machinery and Equipment. This category includes equipment
identifiable to FS groups:

FS Group Description

  ---- ------------------------------------------------------------------
  32   Woodworking Machinery and Equipment

  34   Metalworking Machinery

  49   Maintenance and Repair Shop Equipment

  51   Hand Tools

  52   Measuring Tools
  ---- ------------------------------------------------------------------

1554 Photographic Equipment. This category includes equipment
identifiable to FS groups:

FS Group Description

  ---- ------------------------------------------------------------------
  67   Photographic Equipment

  ---- ------------------------------------------------------------------

1555 Electrical and Electronic Equipment. This category includes
equipment identifiable to FS groups:

FS Group Description

  ---- ------------------------------------------------------------------
  58   Communication, Detection, and Coherent Radiation Equipment

  59   Electrical and Electronic Equipment Components

  60   Fiber Optics Materials, Components, Assemblies, and Accessories

  61   Electric Wire and Power and Distribution Equipment

  62   Lighting Fixtures and Lamps

  63   Alarm and Signal Systems
  ---- ------------------------------------------------------------------

1556 Training Equipment. This category includes equipment identifiable
to FS groups:

FS Group Description

  ---- ------------------------------------------------------------------
  69   Training Aids and Devices

  ---- ------------------------------------------------------------------

1557 Furniture and Office Equipment. This category includes equipment
identifiable to FS groups:

FS Group Description

  ---- ------------------------------------------------------------------
  71   Furniture

  72   Household and Commercial Furnishings and Appliances

  74   Office Machines and Visible Record Equipment

  75   Office Supplies and Devices

  76   Books, Maps, and Other Publications
  ---- ------------------------------------------------------------------

1558 Motor Vehicles and Transportation Equipment. This category includes
equipment identifiable to FS groups:

FS Group Description

  ---- ------------------------------------------------------------------
  19   Ships, Small Craft, Pontoons, and Floating Docks

  20   Ship and Marine Equipment

  22   Railway Equipment

  23   Ground-Effect Vehicles, Motor Vehicles, Trailers, and Cycles

  24   Tractors

  25   Vehicular Equipment Components

  26   Tires and Tubes

  39   Materials Handling Equipment
  ---- ------------------------------------------------------------------

1559 Aircraft. This category includes equipment identifiable to FS
groups:

FS Group Description

  ---- ------------------------------------------------------------------
  15   Aircraft and Airframe Structural Components

  16   Aircraft Components and Accessories

  17   Aircraft Launching, Landing, and Ground-Handling Equipment
  ---- ------------------------------------------------------------------

1560 Personal Services Equipment. This category includes equipment
identifiable to FS groups:

FS Group Description

  ---- ------------------------------------------------------------------
  73   Food Preparation and Serving Equipment

  77   Musical Instruments and Home-Type Radios

  78   Recreational and Athletic Equipment

  84   Clothing

  85   Toiletries

  89   Subsistence
  ---- ------------------------------------------------------------------

1561 Space Vehicles. This category includes equipment identifiable to FS
groups:

FS Group Description

  ---- ------------------------------------------------------------------
  14   Guided Missiles

  18   Space Vehicles
  ---- ------------------------------------------------------------------

1562 Miscellaneous Equipment. This category includes equipment
identifiable to FS groups:

FS Group Description

  ---- ------------------------------------------------------------------
  10   Weapons

  11   Nuclear Ordnance

  12   Fire Control Equipment

  13   Ammunition and Explosives

  29   Engine Accessories

  40   Rope, Cable, Chains, and Fittings

  53   Hardware and Abrasives

  54   Prefabricated Structures and Scaffolding

  55   Lumber, Millwork, Plywood, and Veneer

  56   Construction and Building Materials

  68   Chemicals and Chemical Products

  79   Cleaning Equipment and Supplies

  80   Brushes, Paints, Sealers, and Adhesives

  81   Containers, Packagings, and Packing Supplies

  83   Textiles, Leather, Furs, Apparel and Shoe Findings, Tents, and
       Flags

  87   Agricultural Supplies

  91   Fuels, Lubricants, Oils, and Waxes

  93   Nonmetallic Fabricated Materials

  94   Nonmetallic Crude Materials

  95   Metal Bars, Sheets, and Shapes

  96   Ores, Minerals, and Their Primary Products
  ---- ------------------------------------------------------------------

1563 Automatic Data Processing Equipment. This category includes
equipment identifiable to FS groups:

FS Group Description

  ---- ------------------------------------------------------------------
  70   General Purpose Automatic Data Processing Equipment, Software,
       Supplies, and Support Equipment

  ---- ------------------------------------------------------------------

**APPENDIX C: AGENCY (NASA) MINIMUM STANDARD SENSITIVE ITEMS LIST**

**C.1** Items, regardless of acquisition value.

**C.1.1** Weapons, all types including, but not limited to, air, spring,
powder, or other propulsions system.

**C.1.2** Hazardous Devices, including environmentally hazardous
devices.

**C.2** Items with an acquisition value of \$500 or more.

**C.2.1** Automatic Data Processing Equipment (ADPE), which includes the
following:

a\. Computers, all microcomputers and personal computers, including
desktop systems, work stations, laptops, notebooks, handheld computers
(palms), and other portables, but excluding mainframes and
minicomputers.

b\. External Computer Peripherals, including:

\(1\) Printers.

\(2\) Disk Drives, (Fixed and Removable Media).

\(3\) Tape Drives.

\(4\) CD and DVD Drives.

\(5\) Scanners.

\(6\) Monitors.

\(7\) Terminals.

c\. Cameras, all types.

d\. Recorders and players, including, but not limited to, digital,
laser, cassette, and reel-to-reel.

e\. Radios.

f\. Receivers.

g\. Transceivers.

h\. Televisions.

**APPENDIX D: NASA EQUIPMENT MANAGEMENT SYSTEM (NEMS)**

**D.1. General Description of NEMS**

D.1.1 Purpose. This appendix sets forth a general description of NEMS
authority and requirements, NEMS operations, NEMS status codes for
equipment availability, the use of NEMS for equipment availability
searches and redistribution, contractor use of NEMS, and the operational
requirements of NEMS.

D.1.2 The NASA Equipment Management Program requires utilization of NEMS
by all NASA organizations and onsite accountable contractors. The system
requires accurate and complete information.

**D.2 General System Description**

D.2.1 The NEMS is a standard, Agency-wide automated system designed to
simplify, standardize, and reduce the cost of managing and controlling
NASA\'s equipment.

D.2.2 NEMS provides all NASA organizations with the elements of
information needed for an integrated system to identify, account for,
and control NASA equipment. Responsibilities and procedures required of
property custodians may be found in NPR 4200.2, Equipment Management
Manual for Property Custodians.

**D.3 How NEMS Operates**

D.3.1 Each NEMS transaction requires a source document that authorizes
the transaction. NEMS generates an Entry Reference Number for each
transaction processed, and the source documents are filed by Entry
Reference Number to establish a complete audit trail for each equipment
item from its initial receipt, for interim changes, until deleted from
the Agency\'s records.

D.3.2 When an equipment record has been deleted from NEMS, the complete
record is stored in a History File. The History File remains accessible,
by ad hoc inquiry, for at least three years.

D.3.3 The NEMS Central Data Base (CDB) offers real-time access to four
Agency-wide files. NEMS active data (equipment file), historical data
(history file) and transaction data (yearly transaction file) can be
accessed by specific ECN or by an ad hoc process that allows the user to
specify selection and display criteria. In addition, the NEMS tables may
be queried.

**D.4 NEMS Roles and Relationships**

D.4.1 NASA Centers will collect necessary data to develop and maintain
NEMS. Each Center must select and provide the inputs which enable NEMS
to be a working accounting interface and control system. The
effectiveness, accuracy, quality, and visibility of the system depend on
the quality of each Center\'s effort. Additional online update
capabilities that may be locally developed must be engineered to
interface with the Centers NEMS.

**D.5 NEMS Required Roles and Relationships Are as Follows:**

a\. The NEMS data base at each Center is maintained by the Center\'s
responsible data processing organization. The Center\'s equipment
management organization operates NEMS Control and analyzes its
activities, making operational changes when necessary.

b\. The Associate Administrator for Institutions and Management, NASA
Headquarters, must approve all actions of the NEMS Configuration Control
Board (CCB) that bear on or impact Agency logistics policy and
objectives and must otherwise advise the CCB of policy implications, as
necessary.

c\. Each Center acts as the input source and prime user of output data
by collecting data about its contractor-held equipment and in-house
holdings and providing the basic information necessary to operate NEMS.
In return, the Center is furnished with control and redistribution
information about NEMS reportable equipment.

d\. Several NASA contractors, through the Center which maintains their
contract, use NEMS. The contractor provides information pertaining to
the NASA equipment they hold and will use equipment made available
through NEMS to meet approved requirements.

e\. Each Center has the following focal points for its NEMS operations:
the SEMO, the NEMS Equipment Manager, and NEMS Control Center personnel.
The NEMS Equipment Manager ensures the following:

\(1\) Standardization and updating of information pertaining to
Center-held NEMS equipment data.

\(2\) Requiring follow-ups to resolve problems related to data
submission.

\(3\) Monitoring and evaluation of the use of NEMS data and providing
activity reporting.

\(4\) Overseeing the NEMS Control Center.

f\. NEMS Status Codes for Equipment. To provide a key to the relative
availability of particular items, the entry of an item will contain a
status code letter reflecting its degree of availability. Status Code A
indicates "Active," and Status Code B indicates "Inactive Assigned."
Property condition codes and definitions are defined in Appendix F of
this NPR. Combining the equipment status code and condition code
provides information regarding the reutilization potential of idle
equipment. Equipment status codes and their definitions are defined in
Appendix G of this NPR.

**D.6 Using NEMS for Equipment Availability Searches and
Redistribution**

D.6.1 Purpose. This part describes the recommendations for NEMS
screening before new procurements are undertaken, how to redistribute
equipment, and how excess equipment is handled within NEMS.

D.6.2 Screening New Procurements. Before new items of equipment are
procured, purchase requests must be screened to determine if the desired
item, or an acceptable substitute, is available from either NEMS or the
NASA Property Disposal Management System (NPDMS).

**D.7 Informal Review of Item Availability**

D.7.1 Each Center, in establishing its NEMS Control Center, will make
provisions for informal screening. This capability will be designed to
permit technical users of equipment to rapidly determine the
availability of particular types of equipment to fulfill requirements
prior to the initiation of a procurement request. This informal review
permits a user to quickly examine several makes and types of equipment
that may meet equipment requirements.

D.7.2 Informal screening will be accomplished by using procedures most
suitable to the particular Center. Generally, a telephone service or
simple form developed by the Center NEMS Equipment Manager is adequate
to accomplish this requirement.

**D.8 Formal Procurement Request Screening**

D.8.1 All Center procurement requests for items of equipment with an
estimated unit cost of \$25,000 or more will be routed through the NEMS
Equipment Manager for screening.

D.8.2 At a minimum, a manufacturer model search of the NASA Central Web
Screening List (NCWSL), http://nemsc.nacc.nasa.gov/npdms/screening) will
be accomplished.

D.8.3 If no candidate items are found as a result of the manufacturer
model search, records may be selected by item name. NCWSL allows for
complete item name search or a partial item name search using a wild
card (\*) to increase the chances of selecting all available items
(e.g., select; computer, personal; or compu\*). Equipment records for
available items will be listed in the same format as shown for the
manufacturer code and model number records.

**D.9 Supplemental Screening. The following additional screening steps
are available:**

a\. Equipment items may be screened through the Defense General Supply
Center (DGSC), Federal Disposal System (FEDS), Screen by Computer and
Request Excess by Electronic Notification, Defense Reutilization and
Marketing Services (DRMS), GSAXcess, and the Plant Clearance Automated
Reutilization Screening System (PCARSS). The Center Industrial Property
Officer will coordinate screening with the procurement request
originator.

b\. The equipment coded active in the data file (i.e., status code A)
may be screened for possible loan or transfer of accountability if the
need for the item is urgent.

\(1\) The NEMS Equipment Manager may screen the NEMS CDB by using the
central equipment file ad hoc menu for records by multiple data fields.

\(2\) Prior to screening, the NEMS Equipment Manager will coordinate
with the holding Center to ensure that the requirement is of such a
nature that the holding Center can provide assistance to the requesting
Center. It is advisable to have the requester confer with the technical
personnel holding the item to determine if it will fulfill the
requirements.

\(3\) Once a loan or transfer of accountability has been arranged, the
NEMS Equipment Managers should take appropriate actions. The transfer of
accountability of Government-furnished equipment to a contractor is
recorded in NEMS merely to provide an audit trail. This record is then
deleted from NEMS in compliance with the FAR 45.5 requirement for
contractors to maintain the official property record.

**D.10 Screening - Approved Contractor Requirements**

D.10.1 Pursuant to the requirements established in the NASA FAR
Supplement, prior to new acquisition of items meeting the definition of
reportable equipment with an estimated unit cost of \$25,000,
contractors are required to submit a DD Form 1419, Department of Defense
Industrial Plant Equipment Requisition, to the Center Industrial
Property Officer or the NEMS Equipment Manager via the contractor's
cognizant contracting officer and COTR. The Contracting Officer must
authorize the request to screen before the NEMS Equipment Manager will
take action. The contracting officer\'s authorization to screen is also
authorization to acquire if the item is available through NEMS, NPDMS,
or PCARRS; it is not an authorization to purchase the item.

D.10.2 If the item requested on the DD Form 1419 is not available from
NEMS or NPDMS, a certificate of nonavailability will be issued and
returned to the contractor for further action. If an item is identified
as being available, steps will be taken to redistribute this item.

D.10.3 A waiver for screening unique items that obviously will not be
found in NPDMS may be acquired through request to the SEMO.

**D.11 NEMS Operational Requirements**

D.11.1 Purpose. This section defines the following NEMS CDB operational
requirements: mandatory data elements and standards used in the NEMS
equipment record; operating schedule to be used for the Center NEMS and
the NEMS CDB; output products and microfilm equipment requirements;
unique equipment requirements; and input transactions and output reports
for the Center.

D.11.2 The NEMS Mandatory Data Elements. Each controlled equipment
record requires certain mandatory data elements to establish the record
in the NEMS data base. Appendix E describes each mandatory data element
in detail.

D.11.3 NEMS Output Products. NEMS generates several types of output
products at a Center.

D.11.3.1 NEMS produces reports on a regular schedule, (i.e. daily,
monthly, or semiannually) or on request. The reports are processed
overnight; the results are available the next day. There are two types
of NEMS reports: preprogrammed and user generated. The preprogrammed
reports (either core or site unique) are designed to produce standard
output with the possibility of variable selection criteria.
User-generated reports are the product of the ad hoc-by-field process.
This information can be displayed either online or as a background
report (hardcopy).

D.11.3.2 NEMS produces NEMS Transaction Documents, NF 1602, for
distribution to the accountable property custodian upon initial
custodian account receipt of equipment and also when change transactions
are made to such equipment record.

D.11.4 NEMS central view. Each Center may use the CDB for equipment
redistribution screening requirements, for locating missing equipment
records that may have been moved to another Center\'s NEMS data base, or
for making equipment record inquiries on a limited number of specified
data fields. The NEMS central view is accessed from NEMS by entering the
command '=NEMSCENT' from any menu. Users are returned to their local
NEMS by entering the command '=NEMS' from any menu.

**D.12 NEMS Documentation Archiving**

D.12.1 The SEMO will operate a document archiving system to ensure that
an adequate audit trail is maintained for all Agency-controlled
equipment.

D.12.2 Source documents, including those for the inventory subsystem,
will be compiled in Entry Reference Number sequence and archived on a
routine basis.

D.12.2.1 The original source documents need not be retained by the
equipment management organization; however, the financial management
organization may wish to retain original source documents that support
financial changes.

D.12.2.2 NEMS Control will maintain appropriate archiving retrieval
equipment to support retrieval and hard-copy printing of archived
records, as necessary, to support the needs of the Center.

**D.13 NASA Form 1602, NEMS Transaction Document**

D.13.1 NF 1602 is a standard Agency form that reflects equipment
information contained in the NEMS data base. This document may be
replaced, at the discretion of the SEMO, by an electronic form or
process that serves the same capabilities as the paper document.

D.13.2 NF 1602 has the following characteristics:

a\. Brief instructions.

b\. The blocks in the right-hand column identify the type of transaction
being performed.

c\. Data in Blocks 1-28 and 36-38 that are computer generated. Any
changes submitted by a property custodian for Blocks 1-28 are annotated
in Block 33, Remarks. Blocks 36-38 indicate the control numbers assigned
for the last transaction, the last transaction type, and the last
transaction name for ready reference. Block 39 is manually annotated by
NEMS Control at the time a new transaction is being processed.

d\. Blocks 1, 8, 9, 11, and 12 are outlined for easily identifying the
equipment control, accountable property custodian, organization mail
stop, and location.

**D.14 NEMS Central Information**

D.14.1 The NEMS central view is designed to provide equipment visibility
for screening and redistributing NASA\'s equipment and for locating
specific equipment items or specific equipment data for management
purposes.

D.14.2 The NASA central view offers real-time access to four Agency-wide
files. NEMS active data (equipment file), historical data (history file)
and transaction data (yearly transaction file) can be accessed by a
specific ECN or by an ad hoc process that allows the user to specify
selection and display criteria. In addition, the NEMS Tables may be
queried by selecting specific data elements (See D.14.3 a-e).

D.14.3 NASA Central Web Screening List (located at:
<http://npdmsap1.nacc.nasa.gov/npdms/screening/> provides the following
five methods of data selection that are available to a NASA Center:

a\. Equipment Search by FSC.

b\. Equipment Search by Item Name.

c\. Equipment Search by Manufacturer Code.

d\. Equipment Search by Manufacturer Model Number.

e\. Equipment Search by Cost.

D.14.4 NEMS is designed to generate special data reports upon request.
Most data fields can be sorted or compared with other data fields.

D.14.5 NEMS Equipment Record. A record for each item of controlled
equipment will be established in NEMS, upon initial Agency receipt, by
initiating an add transaction and selecting the appropriate Acquisition
Transaction Number. The equipment record will include, at a minimum,
mandatory data fields.

D.14.6 Transaction Audit Trail. Any addition, deletion, change, or
adjustment to the NEMS records of controlled equipment generates an
Entry Reference Number, which enables an audit trail. The Entry
Reference Number is also used to locate the transaction source document
that has been processed.

D.14.7 Data and Statistical Records. Data and statistical records must
be available through NEMS for reporting purposes. NEMS includes ad hoc
query capability to extract various equipment management data. However,
capital and controlled items, with their total dollar values, must be
reported to the Logistics Management Division, NASA Headquarters,
semiannually (as of March 31 and September 30), or on request, by
specific data sorts. NEMS Report 420-430 provides the data required for
the semiannual report.

D.14.8 Property Custodian Records. NEMS Control will provide property
custodians with NF 1602, NEMS Transaction Document, or a suitable
electronic format for each item of equipment assigned to their account.
Property custodians will maintain or have access to files or documents
affecting receipt, movement, and disposition of controlled equipment in
their property management areas.

**APPENDIX E: NEMS MANDATORY DATA ELEMENTS IN DETAIL**

**E.1** Equipment Control Number: The ECN is the key, unique identifier
for each equipment record in NEMS. The ECN is assigned when an equipment
item is first received in NASA. The ECN remains with the item until the
equipment is permanently removed from NASA\'s equipment records. The ECN
is the primary key for extracting data from the NEMS data base. The NASA
Headquarters, Logistics Management Team, is responsible for Agency-wide
control of ECNs to prevent loss and duplication of records.

**E.2** Installation Number: Each Center and sub-Center, as appropriate,
must be identified by two, two-position numeric codes within NEMS to
identify the accountable Center. The NEMS NASA Center Number Table is as
follows:

  ---------- ----- ----------------------------------- ------------ ------------
  **INST**                                                          **ZIP**

  ACCT       SUB   CENTER NAME                         ACRONYM      CODE

                                                                    

  01         01    Langley Research Center             LaRC         23681-0001

  02         02    Ames Research Center                ARC          94035-1000

  03         03    Glenn Research Center               GRC          44135-3191

  04         04    Dryden Flight Research Center       DFRC         93523-0273

  05         05    Goddard Space Flight Center         GSFC         20771-0001

  05         06    Wallops Flight Facility             WFF          23337

  05         11    Headquarters                        HQ           20546-0001

  07         07    Jet Propulsion Laboratory           JPL          91109-8099

  08         08    Marshall Space Flight Center        MSFC         35812-0001

  08         81    Marshall Space Flight Center Prog.  MSFC         35812-0001
                   Inf. Sys. Mission SVS (UNITeS)                   

  09         09    Johnson Space Center                JSC          77058-3696

  09         91    White Sands Test Facility           WSTF         88004-0020

  09         92    Johnson Space Center                JSC          77058-3696
                   (SPOC-USA/West)                                  

  10         10    Kennedy Space Center (NASA)         KSC          32899-0001

  10         15    Kennedy Space Center (J-BOSC)       KSC          32899-0001

  10         16    Kennedy Space Center                KSC          32899-0001
                   (SPOC-USA/East)                                  

  10         18    Kennedy Space Center (CAPPS)        KSC          32899-0001

  13         13    Stennis Space Center                SSC          39529-6000
  ---------- ----- ----------------------------------- ------------ ------------

**E.3** Item Name: Each equipment record must contain an item name. Item
names must be assigned in a consistent manner that ensures accurate
identification for locating all like items when screening NEMS for
reutilization and other purposes.

**E.4** Manufacturer's Code: Each equipment record in NEMS requires
assignment of a manufacturer\'s code. Each manufacturer\'s code must
correspond to the manufacturer\'s name and address as shown in the NEMS
Manufacturer\'s Code Table. An equipment record with an unknown
manufacturer, or a manufacturer without an assigned code, preferably
will be referred to the Center NEMS cataloger for the appropriate code
prior to the processing of the add transaction. A record may be
processed with \"XXXXX\" if the manufacturer is not listed in the NEMS
Manufacturer\'s Code Table, or with \"ZZZZZ\" if the manufacturer is
unknown. When the manufacturer has been verified as unknown by visual
inspection of equipment, \"YYYYY\" will be processed. The Center NEMS
Equipment Manager will ensure that \"ZZZZZ\" and \"XXXXX\" manufacturer
codes and data entry errors are resolved in a timely manner.

**E.5** Manufacturer's Model Number: Each equipment record in NEMS
requires the equipment item model number, when known. If there is no
model number, NEMS requires the word \"NONE\" in the model number field.
A Center NEMS cataloger will review standardization of model numbers
(e.g., model number 123A will always be entered as 123A and not as 123-A
or 123/A). The Center NEMS Equipment Manager will establish a procedure
to ensure standardization of model numbers.

**E.6** Manufacturer's Serial Number: Each equipment record in NEMS
requires the equipment item serial number, when known. If there is no
serial number, NEMS requires the word \"none\" in the serial number
field. Serial numbers do not require standardization procedures.

**E.7** Date Installation Acquired: Each equipment record in NEMS
requires the date that the Center acquired the item. The date the Center
acquired the item is entered by each Center as equipment items are
acquired or transferred from one NASA Center to another. Note: NEMS
automatically generates the date that an item initially enters NASA and
permanently records this date in the Date NASA Acquired field.

**E.8** User Number: Each equipment record must contain a user number.

**E.9** Custodian Account Number: Each equipment record in NEMS requires
a custodian account number. Each equipment item is assigned to a
property custodian account located within the organization using that
equipment item.

**E.10** Federal Supply Class: Each equipment record in NEMS requires
the appropriate four-digit Federal Supply Class. NEMS provides for entry
of the entire 13-position National Stock Number; however, only the
four-digit Federal Supply Class is mandatory. The Federal Cataloging
Handbooks, H2 series, is used to identify and classify all equipment.

**E.11** Acquisition Document Control Number: Each equipment record in
NEMS requires the Acquisition Document Control Number. The initial
addition of an item to the NEMS is authorized by a source document such
as a purchase order, contract, receiving report, or other appropriate
document. The control number on the source document is the Acquisition
Document Control Number; the source document begins documentation of the
audit trail for an item.

**E.12** Capital-Sensitive Code: Each equipment record in NEMS requires
the appropriate Capital- Sensitive Code. These codes are the mechanism
for reporting capital equipment items to the financial management
organization for entry in the general ledger 1500-series accounts
established for equipment. The five capital-sensitive codes provide the
distinction among capital, capital sensitive, noncapital sensitive,
noncapital nonsensitive controlled, contractor held, and noncontrolled
equipment items for reporting and control purposes.

**E.13** Acquisition Cost: Each equipment record in NEMS requires the
acquisition cost of the item. The acquisition cost remains with an item
through its life cycle within NASA, unless the item cost has been
increased or decreased by equipment modification. For a commercially
manufactured item, the acquisition cost will be the purchase price of
the unit and, if capital equipment, will include transportation and
Center charges and handling and storage costs, if these costs are part
of the purchasing document (i.e., purchase order or contract) and
readily and distinctly related to an individual item purchased (see
Financial Management Requirement Volume 6, Chapter 4). For a
NASA-fabricated item, the acquisition cost will include production costs
only, i.e., design, development, parts, and labor or contract value. For
noncapitalized equipment transfers from other entities, the acquisition
cost will be the amount reimbursed or, if nonreimbursable, the fair
market value. For capitalized equipment from other entities, the
acquisition cost will be the amount reimbursed or, if nonreimbursable,
the net book value of the transferor (capitalized value minus
depreciation costs). For a leased item, the acquisition cost field will
be the estimated fair market value. When NASA takes title to a leased
item, the acquisition cost will remain the initial estimated fair market
value. For an outside loaned in item, the acquisition cost field will be
the cost provided by the loaner or an estimated fair market value. When
the acquisition cost is unknown, an estimated fair market value, based
upon like items in NEMS, or value, based upon engineering estimates,
will be entered. The NEMS one-position Estimated Cost Code data element,
designated as an \"E,\" will be entered when the acquisition cost is
estimated.

**E.14** Year Manufactured: Each equipment record in NEMS requires the
year the equipment was manufactured. If that year is unknown, enter the
estimated year of manufacture.

**E.15** Status Code: Each equipment record in NEMS requires a status
code. Equipment items with capital-sensitive code X (noncontrolled,
nonsensitive equipment) will be reported in status code A, since they
are not part of the NEMS equipment reutilization program. Status codes
will be updated when the degree of availability changes for equipment
items.

**E.16** Location: Each equipment record in NEMS requires a ZIP code and
building number.

**E.17** Other NEMS Data Fields: Detailed descriptions of the optional
data elements may be found in the NEMS specifications document.

**APPENDIX F: NEMS DATA FIELDS**

**F.1** Equipment Control Number. A record must contain the Equipment
Control Number tag decal number assigned to the corresponding controlled
equipment.

**F.2** Item Name. Each record must contain an item name, not to exceed
30 alphanumeric characters.

**F.3** Commercial and Government Entity (CAGE) Code: An eight-position
alphanumeric manufacturer\'s code, derived from the Federal Logistics
Data on CD (FEDLOG). The Center Equipment Manager is responsible for
proper code cataloging.

**F.4** Manufacturer's Model Number. When known, each record will have a
model number not to exceed 20 alphanumeric positions. The
manufacturer\'s name plate data will be the standard used for this
field. The special characters; e.g. dash (-), period (.), and slash (/)
are used only when separating alpha characters from alpha or numeric
characters from numeric. If there is no model number, enter the word
"NONE."

**F.5** Manufacturer's Serial Number. When known, each record will have
a manufacturer\'s serial number not to exceed 20 alphanumeric positions.
The serial number may be entered with dashes and/or slashes. If there is
no serial number, enter the word "NONE."

**F.6** Date Installation Acquired. The year, month, and day that the
current accountable Center, or a contractor at that Center, received or
identified an item of equipment. The \"Date NASA Acquired\" is generated
from the \"Date Center Acquired\" the first time an item is added to the
NEMS data base.

**F.7** Custodian Account Number. A five-position alphanumeric number
assigned for the current custodian accounts, except offsite
contractor-held records.

**F.8** Federal Supply Class. Within the 13-position numeric National
Stock Number, each record must contain, in the first four positions, the
appropriate four-digit Federal Supply Class. The Federal Cataloging
Handbooks, H2 series, will be used to identify and classify all
equipment.

**F.9** Acquisition Document Control Number. Each record must contain
the Acquisition Document Control Number, i.e., the purchase order
number, contract number, receiving report number, or other appropriate
document number.

**F.10** Capital/Sensitive Code. Each record must contain an appropriate
one-position alphanumeric, management identification code as follows:

a\. M - Capital Equipment Nonsensitive (greater than or equal to
\$100,000).

b\. N - Noncapital Equipment Sensitive (less than \$100,000).

c\. P - Capital Equipment Sensitive (greater than or equal to
\$100,000).

d\. Q - Noncapital Nonsensitive Controlled Equipment (greater than
\$5,000, but less than \$100,000).

e\. X - Noncontrolled Equipment (includes loan in and lease in items).

**F.11** Acquisition Cost. Each record must contain the equipment
acquisition cost. Costs are rounded to whole dollars in a nine-position
numeric field. Appendix D further describes the criteria for determining
acquisition cost based upon the type of receipt.

**F.12** Year Manufactured. A two-position numeric field for the year in
which an item of equipment was manufactured. For an item acquired by
purchase, the year purchased is used. For an item acquired by means
other than purchase, the actual or estimated year of manufacture is
used.

**F.13** Status Code. A value is assigned relative to the availability
of the item of equipment for redistribution as follows:

a\. A - Active Assigned; item unavailable in the normal conduct of
business since the item is in use.

b\. B - Inactive Assigned; item in Center loan pool, in storage, on
lease or loan out, in excess, or held by an organization for a specific,
identified program or project. Items can be screened but may or may not
be available for reutilization by other Centers.

**F.14** Equipment Location by ZIP Code and Building. A five-position
alphanumeric field for the U.S. Postal Service ZIP code is used for the
geographical location of an equipment item. A 10-position alphanumeric
number of the building or other general location is used for equipment
location.

**F.15** Mandatory Data Elements Generated by NEMS. Three data elements
are always computer generated by NEMS when a controlled equipment record
is established. They are as follows:

a\. Equipment Type Account. A four-position numeric field, from
1551-1563 designating the type of equipment, assigned for financial
reporting purposes. The Equipment Type Account is generated by cross
reference from the Federal Supply Group Table, which uses the first two
positions of the National Stock Number Federal Supply Group as the key
to the table.

b\. Date NASA Acquired. A six-position numeric date in \"YYYY MM DD\"
format that is generated from the add transaction at time of initial
receipt within the Agency.

c\. Acquisition Entry Reference Number. A ten-position, unique
computer-generated number assigned at the time an add transaction is
processed, which begins the audit trail for the item. Every transaction
processed in NEMS (add, change, and delete) generates an Entry Reference
Number. The Entry Reference Number consists of the following:

\(1\) Positions 1 - 2 - Installation sub (see Appendix E).

\(2\) Positions 3 - 6 - Julian date (YDDD format).

\(3\) Positions 7 - 10 - year, sequence number assigned to each
transaction during the day, starting each day with Y001.

**F.16** Mandatory Fields for Certain Add Transactions. Four NEMS data
fields become mandatory under the following conditions:

a\. User Number. A six-position alphanumeric code. Mandatory for all add
transactions.

b\. Condition Code. A two-position alphanumeric code that indicates the
physical condition and usability of an item of equipment. The following
codes are mandatory for all add transactions:

\(1\) 1-Excellent.

\(2\) 4-Usable.

\(3\) 7-Repairable.

\(4\) S-Scrap.

\(5\) X-Salvage.

c\. Other Government Agency. A two-position numeric U.S. Treasury
identification number is used when an equipment record is established as
a result of a Government agency providing NASA with funds for acquiring
equipment or for the transfer of accountability for equipment to NASA.

**APPENDIX G: NEMS STATUS CODES FOR EQUIPMENT**

**G.1** Status Code A - Active. Status code A is assigned to items of
equipment that are in use and required in the performance of an approved
NASA program or project. Items in this classification are not normally
considered available for redistribution, although the holding Center may
make loans when requested. This status does not mean items are
necessarily in continuous use, but they are assigned an active role
integral to a program need; e.g., machines in a machine shop, Space
Transportation System orbiter flight simulators, or Scout launch vehicle
ground- support equipment.

**G.2** Status Code B - Inactive Assigned

G.2.1 Items classified in status code B are not being actively used on a
project, but are being held in reserve or otherwise retained for an
approved program or project; e.g., Apollo equipment being retained for
the Shuttle. Also, see paragraph 3.6.8., Reporting and Control of
Inactive Equipment Retained by NASA Centers.

G.2.2 Items generally coded B are as follows:

a\. Equipment being held for firm future programs and projects
identified to a specific requirement, the planning of which has been
approved by the Center Director.

b\. Equipment available for transfer of accountability from equipment
pools.

c\. Equipment held in storage by operational organizations when the
organization retains accountability.

d\. Inactive equipment approved for retention as a heritage asset.

**APPENDIX H: SURVEY OF LOST, DAMAGED, OR DESTROYED EQUIPMENT**

**H.1** Purpose. To prescribe the administrative and procedural
requirements for the survey of lost, damaged, or destroyed equipment.
This requirement is applicable to all Government-owned equipment onsite
at NASA Headquarters and Centers for which equipment accountability is
the responsibility of the Government and the official records are the
Centers\' equipment control system.

**H.1**.**1** Equipment held by contractors or grantees is governed by
the provisions of the Federal Acquisition Regulations (FAR), the NASA
FAR Supplement, or the NASA Grants Guidance. This part does not apply to
onsite contractors under the Installation-Accountable Government
Property (IAGP) clause, NASA FAR 1852.245-71. They are required by the
IAGP clause to establish and adhere to a system of written procedures
for compliance with user responsibilities. And, such procedures must
include holding employees liable, when appropriate, for loss, damage, or
destruction of Government property. This part does not apply to
Government equipment held by a contractor or grantee, whose records are
the official property records, and the equipment is accountable under a
NASA contract or grant.

**H.2** General Policy. A survey will be initiated immediately after
discovery that Government property has been lost, damaged, or destroyed.
A survey is an administrative action whereby the loss, damage, or
destruction of Government property is documented, investigated, and
reviewed to determine pertinent facts, adjust the records, and determine
the extent or absence of personal responsibility for loss, damage, or
destruction. When theft is suspected and property cannot be located, the
Center Security Officer will be notified immediately. A copy of any
investigative report and finding will become part of the Survey Report
when issued.

**H.2.1** Procedures for Submitting a Survey Report

**H.2.2** When Government property for which equipment accountability is
maintained becomes lost, damaged, or destroyed, the user (or individual
who last had possession of the property at the time) will immediately
notify their property custodian. If theft is suspected, the property
custodian will notify the Center Security Officer and Office of the
Inspector General immediately. The individual will then prepare Part I
of a Survey Report, NASA Form 598. After completion of Part I of the
Survey Report, the user or individual will submit the document to the
division director through the accountable property custodian. If the
user or person who last had possession of the equipment is unknown or no
longer a NASA employee, it is the responsibility of the property
custodian to complete Part I of the survey report.

**H.2.3** The division director (or the next highest level of management
if the Government employee is the division director) will review the
survey report(s) submitted by the user, specify in Part II the
corrective action that is proposed or has been taken to prevent
recurrence, sign Part II of the Survey Report, and forward it to the
Supply and Equipment Management Officer.

**H.3** The Center Supply and Equipment Management Officer or designee
will do the following:

a\. Verify or ascertain the value of the lost, damaged, or destroyed
property and authorize the processing of the NEMS delete transaction.

b\. Ensure maintenance of a Survey Report Register. Each report will be
assigned a number and entered in the register upon initial receipt. All
documents pertaining to a Survey Report will be identified with the
report number.

c\. Refer Survey Reports to either the Property Survey Board or the
Property Survey Officer as appropriate.

d\. Ensure follow-up on the implementation of all recommendations
arising from the survey process for adequate internal control.

e\. Forward a copy of all reports initiated on Capitalized items (valued
at \$100,000 or more) to the Headquarters Logistics Management Division.

**H.4** In cases of damage, appropriate technical personnel of the
Center will be requested, when necessary, to assist in developing repair
costs which will be included as part of the report. All lost, damaged,
or destroyed controlled property with a total acquisition cost greater
than \$5,000, less reasonable depreciation, will be referred by the
Property Survey Officer to the Property Survey Board for investigation
and disposition. Investigations should be thorough but consistent with
the magnitude of the type of item and its value and the probability of
individual neglect or misconduct. Property surveyed as lost but found
later will be reinstated in NEMS.

**H.5** Time Limit on Submitting Survey Reports and Completing Action.

H.5.1 Survey Reports must be submitted by the division director (or the
next highest level of management if the Government employee is the
division director) to the Center SEMO within 30 working days of the
discovery of loss, damage, or destruction of property.

H.5.2 Recommended action(s) by the Survey Board should be completed
within 90 working days of the division director submittal. The
90-working-days time limit is at the discretion of the Center SEMO and
may be extended or reduced when necessary. As stated above, the SEMO
must ensure follow-up on the implementation of all recommendations
arising from the survey process.

H.5.3 Supporting documentation for Survey Report actions must be
retained by the Center SEMO. Therefore, all supporting documentation
must be forwarded to the SEMO by the Property Survey Officer or the
Property Survey Board or equivalent forum for inclusion in the official
survey files.

**H.6** Investigation and Findings by Property Survey Officer or
Property Survey Board.

**H.6.1** Each Survey Report will be fully investigated, and written
findings will be made by the Property Survey Officer or Property Survey
Board as to the facts concerning the loss, damage, or destruction of the
Government property. Such findings will include the extent or absence of
personal responsibility, including findings as to whether the loss,
damage, or destruction resulted from negligence, misuse, dishonesty, or
misconduct on the part of the Government employee. All evidence,
testimony, or other information considered during the investigation must
be clearly documented.

**H.6.2** If the loss, damage, or destruction of Government property is
found to have resulted from negligence, misuse, dishonesty, or
misconduct on the part of the Government employee, the Property Survey
Officer or Property Survey Board will send written notification to the
Government employee in question and afford such individual the
opportunity to present a written statement of facts concerning the loss,
damage, or destruction of the Government property. A copy should also be
forwarded to the division director concerned. The statement will become
a part of the Survey Report and will be considered in the findings and
recommendations of the Property Survey Officer or the Property Survey
Board.

**H.6.3** The Property Survey Board will hold meetings as required, and
all actions will be documented in written minutes. To meet the
requirements of paragraphs H.6.1 - H.6.2, these minutes will be in
addition to the statements included in the Survey Reports and will
constitute part of the investigation record.

**H.7** Recommendations by the Property Survey Officer or the Property
Survey Board.

H.7.1 On the basis of the investigation and findings, the Property
Survey Officer or Property Survey Board may recommend to the division
director (or the next highest level of management if the Government
employee is the division director) that the Government employee involved
will:

a\. Be held financially accountable and responsible for the loss,
damage, or destruction of the Government property.

b\. Be disciplined pursuant to NPR 3752.1, Disciplinary and Adverse
Actions.

c\. Be relieved from accountability and responsibility for the loss,
damage, or destruction of the Government property.

H.7.2 The Property Survey Officer or Property Survey Board will apply
the following standards in making its findings and recommendations. A
Government employee should be relieved from accountability and
responsibility, whether financial or otherwise, for any loss, damage, or
destruction of Government property if:

a\. He or she satisfactorily explains the circumstances surrounding the
loss, damage, or destruction.

b\. The evidence is consistent with such explanation.

c\. Under the circumstances, the loss occurred despite reasonable care
and precautions.

H.7.3 On the basis of the investigation and findings, the Property
Survey Officer or Property Survey Board may also recommend specific
corrective or preventive action to reduce the probability of recurrence.

**H.8** Approvals by Property Survey Officer

H.8.1 The Property Survey Officer shall review all Survey Reports and
related evidence and return Survey Reports to the Property Survey Board
for further information or analysis. The Property Survey Officer will
have final approval authority for all Survey Reports.

H.8.2 Once a Survey Report is approved by the Property Survey Officer,
the Property Survey Officer or Property Survey Board will ensure that
the following actions are accomplished:

a\. The specific corrective or preventive action set forth in the Survey
Report is taken by the appropriate offices.

b\. The Center management is fully informed of the implementation of all
recommendations concerning specific corrective or preventive action
arising from the survey process.

c\. Indications of illegal or unethical conduct are referred to the
Inspector General in accordance with NPD 9800.1, NASA Office of
Inspector General Programs.

d\. Complete documentation on the loss, damage, or destruction is
forwarded to the SEMO for retention and distribution, as defined in this
section.

**H.9 Disposition of Survey Reports**

H.9.1 If the Survey Report recommends that the Government employee
should be held accountable and responsible for the loss, damage, or
destruction, the division director (or the next highest level of
management if the Government employee is the division director), in
consultation with the appropriate Personnel Office, Financial Office,
and the Center Chief Counsel (or the Office of the General Counsel, NASA
Headquarters), will decide whether to adopt the recommendations of the
Property Survey Officer or Property Survey Board with regard to the
financial liability of the Government employee.

H.9.2 If these recommendations are adopted, the Center Financial Office
will apply the following standards in determining the amount of
liability:

a\. For lost or destroyed property, the amount of liability will be the
acquisition cost of the property, less reasonable depreciation.

b\. For damaged property, the amount will be the lesser of the
following: the actual cost to the Government to restore the property to
the same condition it was in immediately preceding the damage, or the
acquisition cost value of the property, less reasonable depreciation.

H.9.3 The amounts found owing to the Government as a result of the loss,
damage, or destruction may be voluntarily remitted by the Government
employee upon the request of the Financial Office or may be collected by
administrative offset, pursuant to applicable regulations implementing 5
U.S.C. 5514, as amended.

H.9.4 If the findings and recommendations of the Survey Report indicate
that the loss, damage, or destruction of the Government property
resulted from negligence, misuse, dishonesty, or misconduct on the part
of the Government employee, disciplinary action may be taken in
accordance with NPR 3752.1, Disciplinary and Adverse Actions.

**H.10 Reporting**

H.10.1 The Center Property Survey Officer, in conjunction with the
Chairperson, Property Survey Board, or designee, will ensure that
feedback is provided to the Center Director via a written report, at
least annually, through official channels.

H.10.2 This report, at a minimum, should include the total number of
Survey Reports processed at the Center during the reporting period, the
total number of Survey Reports submitted by each directorate or
equivalent organization, the acquisition cost, less reasonable
depreciation of the lost, damaged, or destroyed property for each
directorate or equivalent organization, and general information
regarding significant actions, problems, or other matters of substance
related to Survey Reports, including trends by organization, location,
or equipment type.

**H.11 Optional Use of Investigation Report of Motor Vehicle Accident
(Standard Form 91)**

H.11.1 To avoid duplication of investigation and reporting, NASA
Headquarters and NASA Centers, including Component Facilities, are
authorized to use the Investigation Report of Motor Vehicle Accident,
Standard Form 91, in lieu of the Property Survey Report, NASA Form 598,
when a motor vehicle is damaged or destroyed in an accident.

H.11.2 Completed copies of Standard Form 91 received by the Supply and
Equipment Management Officer will be processed in the same manner as
NASA Form 598.

H.11.3 Complete survey procedures need not be followed when a motor
vehicle is damaged and the cost of replacement or repair does not exceed
\$250; there is no bodily injury; and the Transportation Motor Vehicle
Operations Officer, with approval of the Center\'s Chief Counsel Office,
determines there is no negligence. However, a Standard Form 91 must be
submitted to the Center Transportation Motor Vehicle Operations Officer.

H.11.4 Accidents involving a NASA employee operating a General Services
Administration motor pool vehicle will be investigated and reported as
prescribed in Federal Property Management Regulations, subpart 101-39.

**H.12 Other Property Damage Reporting and Investigation Requirements**

H.12.1 The Survey Report process is applied in conjunction with (other
damage reporting and investigating processes) the Mishap Reporting
process as defined in NPR 8621.1 NASA Procedural Requirements for Mishap
Reporting, Investigating, and Recordkeeping. Mishap reporting and
investigations determine mishap causes for the purpose of preventing
their recurrence. The scope of mishaps as defined in NPR 8621.1 includes
damage to property. If any damage meets the criteria of a mishap in
accordance with the requirements of NPR 8621.1, the investigating
authority identified by the Office of Safety and Mission Assurance will
determine the cause of damage. The Property Survey Officer or Property
Survey Board will perform their assessment after completion of the
mishap investigation. The resulting determination of the cost of loss by
the Property Survey Officer or Property Survey Board will be entered
into the NASA Incident Reporting Information System (IRIS).

H.12.2 In addition to the requirements in NPR 8621.1, the requirements
in NPR 7900.3, Aircraft Operations Management, Center Flight Operations
Procedures, and FPMR 101-37.1105 also apply to mishaps involving damage
or destruction to aircraft. The Supply and Equipment Management Officer
must obtain approved copies of the appropriate mishap reports to delete
the aircraft from the property records (in the cases of loss or
destruction) and notify the Center financial management organization of
the adjustment to the records. In the case of damage, aircraft will not
be deleted from the property records, and the cost will not be adjusted
if fully repaired; however, the Supply and Equipment Management Officer
will keep copies of the approved mishap reports on file.