![](media/image1.wmf){width="0.8243055555555555in"
height="0.6888888888888889in"} Procurement Notice

National Aeronautics and

Space Administration

Washington, DC 20546

##  PN 97-89

###  October 31, 2003

# GOVERNMENT PROPERTY - INSTRUCTIONS FOR PREPARING NASA FORM 1018

***PURPOSE:*** This PN revises the NASA FAR Supplement (NFS) to provide
a definition of obsolete property, to address contractor validation of
1018 data and proper reporting of software to which NASA has title, to
clarify other property classifications, and revise the date for
submission of annual property reports.

***BACKGROUND:*** Each year, NASA's financial statements are audited in
accordance with generally accepted government auditing standards. NASA
must maintain adequate controls to reasonably assure that property,
plant and equipment and materials are presented fairly in its financial
statements. Since contractors maintain NASA's official records for its
assets in their possession, NASA uses the data contained in contractor
reports for annual financial statements and property management. This PN
provides policies and procedures related to obsolete property,
contractor validation of 1018 data, and proper reporting of software to
which NASA has title. This change will provide for consistent reporting
of NASA property by contractors. It also reflects the need to change the
date of submission for annual property reports from October 31^st^ to
October 15th.

***ACQUISITIONS AFFECTED BY CHANGES:*** Solicitations and contracts that
require property reporting.

***ACTION REQUIRED BY CONTRACTING OFFICERS:*** The new clause should be
incorporated into all new solicitations and contracts. Solicitations
that have been issued, and bilateral agreements for which negotiations
have been completed, before the receipt of the new clause need not be
amended to include the new clause if including it would unduly delay the
acquisition.

***CLAUSE CHANGES:*** Paragraph (c) of 1852.245-73 Financial Reporting
of NASA Property in the Custody of Contractors has been added to reflect
the need to submit the annual report in time to be received by October
15 each year. Data included in the report should be supported and
documented by historical experience or other corroborating evidence, and
be retained in accordance with FAR Subpart 4.7, contractor Records
Retention. Contractors shall have formal policies and procedures which
address the validation of NF 1018 data. If the Contractor fails to
submit annual NF 1018 reports in accordance with 1845.505-14 and any
supplemental instructions for the current reporting period issued by
NASA, the Contracting Officer may, in NASA's interest, withhold payment
until a reserve not exceeding \$25,000 or 5 percent of the amount of the
contract, whichever is less, has been set aside.

***PARTS AFFECTED:*** Changes are made in Parts 1845 and 1852.

***REPLACEMENT PAGES:*** You may use the enclosed pages to replace 45:13
through 45:29, 52:81 through 52:90, 52-97, and 52-98 of the NASA FAR
Supplement.

***TYPE OF RULE AND PUBLICATION DATE:*** The PN was published as an
interim rule in the Federal Register (68 FR 62023 - 62026) on October
31, 2003.

***HEADQUARTERS CONTACT:*** Lou Becker, Code HK, (202) 358-4593, email:
lou.becker@nasa.gov.

James A. Balinskas

Director, Contract Management Division

Enclosures

DISTRIBUTION:

**PN List**

**1845.615 Accounting for contractor inventory.**

A copy of Standard Form 1424, Inventory Disposal Report, shall be
provided to the center industrial property officer or the PDO.

**Subpart 1845.70\--Reserved**

**Subpart 1845.71\--Forms Preparation**

**1845.7101 Instructions for preparing NASA Form 1018.**

NASA must account for and report assets in accordance with 31 U.S.C.
3512 and 31 U.S.C. 3515, Federal Accounting Standards, and Office of
Management and Budget (OMB) instructions. Since contractors maintain
NASA's official records for its assets in their possession, NASA must
obtain periodic data from those records to meet these requirements.
Changes in Federal Accounting Standards and OMB reporting requirements
may occur from year to year, requiring contractor submission of
supplemental information with the NASA Form (NF) 1018. The specific
Statements of Federal Financial Accounting Standards (SFFAS) to be used
for property records are SFFAS No. 3 "Accounting for Inventory and
Related Property", SFFAS No. 6 "Accounting for Property, Plant and
Equipment", SFFAS No. 10 "Accounting for Internal Use Software", and
SFFAS No. 11 "Amendments to PP&E: Definitions" issued by the Federal
Accounting Standards Advisory Board. Classifications of property,
related costs to be reported, and other reporting requirements are
discussed in this subpart. NF 1018 (see 1853.3) provides critical
information for NASA financial statements and property management.
Accuracy, completeness, and timeliness of the report are critical to
many aspects of NASA's operations.

**1845.7101-1 Property classification.**

\(a\) *General.*

\(1\) Contractors shall report costs in the classifications on NF 1018,
as described in this section. The cost of heritage assets and obsolete
property will be reported on the NF 1018 under the appropriate
classification. Supplemental reporting may also be required.

(2)(i) Heritage assets are property, plant and equipment that possess
one or more of the following characteristics:

\(A\) Historical or natural significance;

\(B\) Cultural, educational or artistic importance; or

\(C\) Significant architectural characteristics.

\(ii\) Examples of NASA heritage assets include buildings and structures
designated as National Historic Landmarks as well as aircraft,
spacecraft and related components on display to enhance public
understanding of NASA programs. Heritage assets which serve both a
heritage and government operation function are considered multi-use when
the predominant use is in general government operations. Multi-use
heritage assets will not be considered heritage assets for NF 1018
supplemental reporting purposes.

\(3\) Obsolete property is property for which there are no current plans
for use in its intended purpose (i.e. it no longer provides service to
NASA operations). Examples of obsolete property are items in
configurations which are no longer required or used by NASA or items
held for engineering evaluation purposes only. NASA may have approved
the retention of these items for programmatic reasons even though they
have no current plans for use.

\(b\) *Land.* Includes costs of land and improvements to land.
Contractors shall report land

with a unit acquisition cost of \$100,000 or more.

\(c\) *Buildings*. Includes costs of buildings, improvements to
buildings, and fixed equipment required for the operation of a building
which is permanently attached to and a part of the building and cannot
be removed without cutting into the walls, ceilings, or floors.
Contractors shall report buildings with a unit acquisition cost of
\$100,000 or more. Examples of fixed equipment required for functioning
of a building include plumbing, heating and lighting equipment,
elevators, central air conditioning systems, and built-in safes and
vaults.

\(d\) *Other Structures and Facilities*. Includes costs of acquisitions
and improvements of real property (i.e. structures and facilities other
than buildings); for example, airfield pavements, harbor and port
facilities, power production facilities and distribution systems,
reclamation and irrigation facilities, flood control and navigation
aids, utility systems (heating, sewage, water and electrical) when they
serve several buildings or structures, communication systems, traffic
aids, roads and bridges, railroads, monuments and memorials, and
nonstructural improvements such as sidewalks, parking areas, and fences.
Contractors shall report other structures and facilities with a unit
acquisition cost of \$100,000 or more and a useful life of two years or
more.

\(e\) *Leasehold improvements.* Includes NASA-funded costs of
improvements to leased

buildings, structures, and facilities, as well as easements and
right-of-way, where NASA is the

lessee or the cost is charged to a NASA contract. Contractors shall
report leasehold

improvements with a unit acquisition cost of \$100,000 or more and a
useful life of two years or

more.

\(f\) *Construction in Progress*. Includes costs of work in process for
the construction of

Buildings, Other Structures and Facilities, and Leasehold Improvements
to which NASA has

title, regardless of value.

\(g\) *Equipment.* Includes costs of commercially available personal
property capable of stand-alone use in manufacturing supplies,
performing services, or any general or administrative purpose (for
example, machine tools, furniture, vehicles, computers, software, test
equipment, including their accessory or auxiliary items). Software
integrated into and necessary to operate another item of Government
property is considered to be an auxiliary item (see FAR 45.501) and
should be considered part of the item of which it is an integral part.
Other software to which NASA has title shall be classified as an
individual item of equipment for reporting purposes if it has a useful
life of 2 years or more and acquisition cost of \$1,000,000 or more
(also see 1845.7101-3(g)). Enhancement costs for existing software
should be added to the software acquisition cost if the enhancement
results in significant additional capability beyond that for which the
software was originally developed (i.e. a capability that was not
included in the original software specifications, the total cost of the
enhancement is \$1,000,000 or more, or the expected useful life of the
enhanced software is 2 years or more). Software licenses are excluded.
Contractors shall separately report:

\(1\) the amount for all items with a unit acquisition cost of \$100,000
or more and a useful

life of two years or more; and

\(2\) All other items.

\(h\) *Special Tooling.* Includes costs of equipment and manufacturing
aids (and their components and replacements) of such a specialized
nature that, without substantial modification or alteration, their use
is limited to development or production of particular supplies or parts,
or performance of particular services (see FAR 45.101). Examples include
jigs, dies, fixtures, molds, patterns, taps and gauges. Contractors
shall separately report:

\(1\) the amount for all items with a unit acquisition cost of \$100,000
or more and a useful life of two years or more; and

\(2\) All other items.

\(i\) *Special Test Equipment.* Includes costs of equipment used to
accomplish special purpose testing in performing a contract, and items
or assemblies of equipment (see FAR 45.101). Contractors shall
separately report:

> \(1\) the amount for all items with a unit acquisition cost of
> \$100,000 or more and a useful life of two years or more; and

\(2\) All other items.

\(j\) *Material.* Includes costs of NASA-owned property held in
inventory regardless of whether or not it is unique to NASA programs
that may become a part of an end item or be expended in performing a
contract. Examples include raw and processed material, spares, parts,
assemblies, small tools and supplies. Material that is part of
work-in-process is not included. Contractors shall report the amount for
all Materials in inventory, regardless of unit acquisition cost.

\(k\) *Agency-Peculiar Property*. Includes costs of completed items,
unique to NASA aeronautical and space programs, which are capable of
stand-alone operation. Examples include research aircraft, reusable
space vehicles, ground support equipment, prototypes, and mock-ups. The
amount of property, title to which vests in NASA as a result of progress
payments to fixed price subcontractors, shall be included to reflect the
pro rata cost of undelivered agency-peculiar property. Completed end
items not related to the International Space Station or the Space
Shuttle program which otherwise meet the definition of Agency-Peculiar
Property, and are destined for permanent operation in space, such as
satellites and space probes, shall not be reported. Contractors shall
separately report:

\(1\) the amount for all items with a unit acquisition cost of \$100,000
or more and a useful life of two years or more; and

\(2\) All other items.

\(l\) Contract *Work-in-Process.* Work-in-process (WIP) consists of
property items under construction (i.e. not complete). It includes costs
of all work-in-process regardless of value, and excludes costs of
completed items reported in other categories. While the costs of WIP for
International Space Station and Space Shuttle components should be
included as WIP, satellites and space probes and their components should
be excluded from WIP as those items will be accounted for by NASA.

**1845.7101-2 Transfers of property**.

A transfer is a change in accountability between and among prime
contracts, NASA Centers, and other Government agencies (e.g., between
contracts of the same NASA Center, contracts of different NASA Centers,
a contract of one NASA Center to another, a NASA Center to a contract of
another NASA Center, and a contract to another Government agency or its
contract). To enable NASA to properly control and account for all
transfers, they shall be adequately documented. Adequate documentation
includes the appropriate dollar amount of the asset(s) transferred (as
prescribed in 1845.7101-3) and the formal, signed NASA or contractor
authorization approving the transfer. In addition, procurement,
property, and financial organizations at NASA Centers must effect all
transfers of accountability, although physical shipment and receipt of
property may be made directly by contractors. The procedures described
in this section shall be followed to provide an administrative and audit
trail, even if property is physically shipped directly from one
contractor to another. Property shipped between

September 1 and September 30, inclusively, shall be accounted for and
reported by the shipping contractor, regardless of the method of
shipment, unless written evidence of receipt at destination has been
received. Repairables provided under fixed price repair contracts that
include the clause at 1852.245-72, Liability for Government Property
Furnished for Repair or Other Services, remain accountable to the
cognizant NASA Center and are not reportable on NF 1018; repairables
provided under a cost-reimbursement contract, however, are accountable
to the contractor and reportable on NF 1018. All materials provided to
conduct repairs are reportable, regardless of contract type.

\(a\) *Approval and Notification.* The contractor must obtain approval
of the contracting officer

or designee for transfers of property off the prime contract before
shipment. Each shipping document must be signed by the contracting
officer or designee demonstrating such approval. Each shipping document
must contain contract numbers, shipping references, property
classifications in which the items are recorded (including Federal
Supply Classification group (FSC) codes for equipment), unit acquisition
costs (as defined in 1845.7101-3, Unit Acquisition Cost), original
Government acquisition dates for items with a unit acquisition cost of
\$100,000 or more and a useful life of two years or more, and any other
appropriate identifying or descriptive data. Where the DD Form 250,
Material Inspection and Receiving Report, is used, the FSC code will be
part of the national stock number (NSN) entered in Block 16 or, if the
NSN is not provided, the FSC alone shall be shown in Block 16. The
original Government acquisition date shall be shown in Block 23, by
item. Other formats, such as the DD Form 1149, Requisition and
Invoice/Shipping Document, should be clearly annotated with the required
information. Unit acquisition costs shall be obtained from records
maintained pursuant to FAR Part 45 and this Part 1845, or, for
uncompleted items where property records have not yet been established,
from such other record systems as are appropriate such as manufacturing
or engineering records used for work control and billing purposes.
Shipping contractors shall furnish a copy of the formally approved
shipping document to the cognizant property administrator. Shipping and
receiving contractors shall promptly submit copies of shipping and
receiving documents to the Center Deputy Chief Financial Officer,
Finance, responsible for their respective contracts when accountability
for NASA property is transferred to, or received from, other contracts,
contractors, NASA Centers, or Government agencies.

\(b\) *Reclassification.* If property is transferred to another contract
or contractor, the receiving

contractor shall record the property in the same property classification
and amount appearing on the shipping document. For example, when a
contractor receives an item from another contractor that is identified
on the shipping document as equipment, but that the recipient intends to
incorporate into special test equipment, the recipient shall first
record the item in the equipment account and subsequently reclassify it
as special test equipment. Reclassification of equipment, special
tooling, special test equipment, or agency-peculiar property requires
prior approval of the contracting officer or a designee.

\(c\) *Incomplete documentation.* If contractors receive transfer
documents having insufficient detail to properly record the transfer
(e.g., omission of property classification, FSC, unit acquisition cost,
Government acquisition date, required signatures, etc.) they shall
request the omitted data directly from the shipping contractor or
through the property administrator as provided in FAR 45.505-2. The
contracting officer shall assist the Government Property Administrator
and the receiving contractor to obtain all required information for the
receiving contractor to establish adequate property records.

**1845.7101-3 Unit acquisition cost.**

\(a\) The unit acquisition cost shall include all costs incurred to
bring the property to a form and

location suitable for its intended use. The following is representative
of the types of costs that shall be included, when applicable:

\(1\) Amounts paid to vendors or other contractors.

\(2\) Transportation charges to the point of initial use.

\(3\) Handling and storage charges.

\(4\) Labor and other direct or indirect production costs (for assets
produced or constructed).

\(5\) Engineering, architectural, and other outside services for
designs, plans, specifications, and surveys.

\(6\) Acquisition and preparation costs of buildings and other
facilities.

\(7\) An appropriate share of the cost of the equipment and facilities
used in construction work.

\(8\) Fixed equipment and related installation costs required for
activities in a building or facility.

\(9\) Direct costs of inspection, supervision, and administration of
construction contracts and construction work.

\(10\) Legal and recording fees and damage claims.

\(11\) Fair values of facilities and equipment donated to the
Government.

\(b\) Acquisition cost shall include, where appropriate, for contractor
acquired property, related fees, or a pro rata portion of fees, paid by
NASA to the contractor. Situations where inclusion of fees in the
acquisition cost would be appropriate are those in which the contractor
designs, develops, fabricates or purchases property for NASA and part of
the fees paid to the contractor by NASA are related to that effort.

\(c\) Acquisition cost shall be developed using actual costs to the
greatest extent possible, especially costs directly related to
fabrication such as labor and materials. Where estimates are used, there
must be a documented methodology based on a historical basis. All
acquisition costs shall be properly documented, supported and retained.
Supporting documentation shall be made available upon request.

\(d\) The use of weighted average methodologies is acceptable for
valuation of Material.

\(e\) Contractors shall report unit acquisition costs using records that
are part of the prescribed

property or financial control system as provided in this section.
Fabrication costs shall be based

on approved systems or procedures and include all direct and indirect
costs of fabrication.

\(f\) Only modifications that improve an item's capacity or extend its
useful life two years or more and that cost \$100,000 or more shall be
reported on the NF 1018 on the \$100,000 & Over line. The costs of any
other modifications, excluding routine maintenance, will be reported on
the Under \$100,000 line. If an item's original unit acquisition cost is
less than \$100,000, but a single subsequent modification costs
\$100,000 or more, that modification only will be reported as an item
\$100,000 or more on subsequent NF 1018s. The original acquisition cost
of the item will continue to be included in the under \$100,000 total.
The quantity for the modified item will remain "1" and be reported with
the original acquisition cost of the item. If an item's acquisition cost
is reduced by removal of components so that its remaining acquisition
cost is under \$100,000, it shall be reported as under \$100,000.

\(g\) Software acquisition costs include software costs incurred up
through acceptance testing and material internal costs incurred to
implement the software and otherwise make the software ready for use.
Costs incurred after acceptance testing are excluded. License,
maintenance, training, and data conversion costs are also excluded. If
the software is purchased as part of a package, the costs will need to
be segregated in such manner as to ensure that the excluded costs
(maintenance, training, etc.) are not reported as part of the software's
acquisition cost. Enhancement costs for existing software should be
added to the acquisition cost if the enhancement results in significant
additional capability beyond that for which the software was originally
developed (i.e. a capability that was not included in the original
software specifications), the total cost of the enhancement is
\$1,000,000 or more, and the expected useful life of the enhanced
software is 2 years or more. Include the same types of cost as indicated
above under new software. Costs incurred solely to repair a design flaw
or perform minor upgrades should not be included.

\(h\) The computation of work in process (WIP) shall include all direct
and indirect costs of fabrication, including associated systems,
subsystems, and spare parts and components furnished or acquired and
charged to work in process pending incorporation into a finished item.
These types of items make up what is sometimes called production
inventory and include programmed extra units to cover replacement during
the fabrication process (production spares). Also included are
deliverable items on which the contractor or a subcontractor has begun
work, and materials issued from inventory. The computation of WIP shall
incorporate the other requirements for unit acquisition cost as outlined
in paragraphs (a) through (e) of this section. In addition, acquisition
cost of property furnished by the Government, which has been
incorporated in the property item under construction or in process of
fabrication, should be included. Do not include costs for operation or
repairing existing completed property items. Once the property is
complete, include all the costs outlined above in its acquisition value
in the property record. The WIP values are inception to date until such
time as the WIP is completed. It does not include future costs.

**1845.7101-4 Types of deletions from contractor property records.**

Contractors shall report the types of deletions from contract property
records as described in this

section.

\(a\) *Lost, Damaged or Destroyed.* Deletion amounts that result from
relief from responsibility under FAR 45.503 granted during the reporting
period.

\(b\) *Transferred in Place*. Deletion amounts that result from transfer
of property to a follow-on prime contract or other prime contract with
the same contractor.

\(c\) *Transferred to NASA Center Accountability.* Deletion amounts that
result from transfer of accountability to the NASA Center responsible
for the contract, whether or not items are physically moved.

\(d\) *Transferred to Another NASA Center.* Deletion amounts that result
from transfer of accountability to a NASA Center other than the one
responsible for the contract, whether or not items are physically moved.

\(e\) *Transferred to Another Government Agency.* Deletion amounts that
result from transfer of property to another Government agency.

\(f\) *Purchased at Cost/Returned for Credit.* Deletion amounts that
result from contractor purchase or retention of contractor acquired
property as provided in FAR 45.605-1, or from contractor returns to
suppliers under FAR 45.605-2.

\(g\) *Disposed of Through Plant Clearance Process.* Deletions other
than transfers within the Federal Government, e.g., donations to
eligible recipients, sold at less than cost, or abandoned/directed
destruction, or trade-ins.

\(h\) *Other*. Types of deletion other than those reported in paragraph
(a) through (g) of this section such as those resulting from
reclassifications (e.g. from equipment to agency-peculiar property).

**1845.7101-5 Contractor\'s privileged financial and business
information.**

If a transfer of property between contractors involves disclosing costs
of a proprietary nature, the contractor shall furnish unit acquisition
costs only on copies of shipping documents sent to the shipping and
receiving NASA Centers.

7102. **Instructions for preparing DD Form 1419.**

\(a\) The contractor shall enter the essential information covering
Sections I and II before submission of DD Form 1419, DOD Industrial
Plant Equipment Requisition, to the Industrial Property Officer (IPO).
The IPO shall review each submission for completeness and authenticity.
Incomplete or invalid requests shall be returned for correction.

\(b\) When a suitable item is allocated in Section IV, inspection of the
equipment is recommended. Notification of acceptance or rejection of the
item offered must reach NASA within 30 days after allocation. A copy of
the DD Form 1419, or equivalent format, will serve as the clearance
document to inspect the equipment at the storage site. Note acceptance
or rejection of the item, without inspection or after inspection in
Section VI. If the item is acceptable, execute Section VII. Cite the
NASA appropriation symbol where applicable in Section VII.

\(c\) The IPO shall assign a requisition number to each DD Form 1419, or
equivalent format request.

\(d\) Next will be a four-digit entry comprised of the last digit of the
current calendar year and the Julian date of the year. For example,
April 15, 1997, would be written as 7095 (April 15 being the 95th day of
the year). The last entry will be a four-digit number from 0001 to 9999
to sequentially number requisition forms prepared on the same date. For
example, the ninth requisition prepared on April 15, 1997, would be
7095-0009, preceded by the FEDSTRIP/MILSTRIP Activity Address Code. When
submitting subsequent DD Forms 1419, or equivalent format, related to
the item requested, the IPO shall use the same requisition number and
add the alpha code to the end of the requisition number to indicate a
second or third action on the basic request. Alpha \"A\" would indicate
a second request, \"B\" a third, etc. In this manner, all actions,
correspondence, etc., relative to a given request can be identified at
all levels of processing by the use of the requisition number.

\(e\) Detailed directions for completing the DD Form 1419 follow. The
contractor may elect to provide the required data in an equivalent
format, which complies with these directions.

**Section I**

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

**Block 1**. Not applicable.

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

**Block 3**. Enter the manufacturer\'s model, style, or catalog number
assigned to the equipment being requisitioned. Always use the model
number, if available. The style number is the next preference. Enter
\"None\" in this block if the model, style or catalog number is not
known.

**Block 4.** Enter the first four digits of the National Stock Number,
if known.

**Block 5.** Not applicable.

**Block 6.** Self-explanatory.

**Block 7.** Place an \"X\" in the applicable block to indicate whether
you desire to physically inspect the item before acceptance.

**Block 8.** Self-explanatory.

**Block 9.** Enter the complete description of the item. Continue the
description in Block 53 if additional space is needed.

**Section II.**

**Block 10.** Enter the contractor\'s name, street address, city, state,
and zip code from which the requisition is being initiated. The address
should be the one to which inquiries of a technical nature will be
referred. Specify the telephone number of an individual who will respond
to inquiries concerning the request.

**Block 11**. Enter the contract number or document number authorizing
acquisition of the items shown in Section I. This normally will be a
facility contract number. Otherwise, it should be a purchase order or
procurement request number.

**Block 12**. Self-explanatory.

**Block 13.** Not applicable.

**Block 14.** Disregard the \"Military\" block. Show the NASA contract
number and program for which the item is to be used.

**Block 15**. Enter the specific function to be performed by the
equipment. When applicable, enter the tolerances, capacities,
specifications, etc., that the equipment must satisfy.

**Block 16.** Determine the date the item must be installed to meet
production requirements. From this date deduct the estimated number of
days required for installation. Enter the adjusted date in this block.

**Block 17.** Enter the date by which NASA must issue a Certificate of
Nonavailability. Determine the date by subtracting the acquisition lead
time and 30 days administrative lead time from the date shown in Block
16.

**Block 18.** Enter the Defense Priority and Allocations System (DPAS)
rating assigned to the contract or anticipated purchase order, if
applicable.

**Block 19.** Place an \"X\" in the appropriate box. If for replacement,
identify the item being replaced and the reason for replacement.

**Block 20.** Place an \"X\" in the appropriate box. Show the
appropriation symbol if the answer is \"yes.\"

**Block 21.** Not applicable.

**Blocks 22 and 23**. In addition to the official\'s title and
signature, type the signing official\'s name, office symbol or name, and
telephone number plus extension. The company representative who prepares
and submits the requirement to the cognizant NASA certifying office
should sign.

**Block 24.** Self-explanatory.

**Block 25a.** Not applicable.

**Block 25b.** Enter the name and address of the installation certifying
the requirement.

**Block 25c.** This block is for signature of the property administrator
or contracting officer at plant level.

**Block 25d.** Self-explanatory.

**Block 25e.** This block is for the signature of NASA installation
official certifying the requirement.

**Block 25f.** Self-explanatory.

**Section III.**

**Blocks 26-29.** Self-explanatory.

**Section IV.**

N/A.

**Section V.**

Complete this section if equipment is unavailable.

**Section VI.**

**Blocks 44-47.** The requesting official signing Section II, Block 23,
shall complete Section VI and shall list reasons for non-acceptance in
Section VIII, Remarks, or on a separate document attached to the DD Form
1419.

**Section VII.**

**Block 48.** Enter the complete name, street address, city, state, and
zip code of the contractor or installation to which the item is to be
shipped. Indicate railhead and truck delivery points when other than the
address named.

**Blocks 49 and 50.** Self-explanatory.

**Blocks 51a. and b.** Ensure that NASA appropriation symbols are
included with the work order number.

**Block 51c.** Enter the NASA appropriation symbol chargeable for any
special work ordered (e.g., rebuild, repair, or accessory replacement).

**Block 51d.** Enter the NASA installation and office symbol for the
organization that will make payment for transportation and packing,
crating, and handling.

**Block 52.** Self-explanatory.

**Section VIII.**

**Block 53**. This block can be used to expand or explain entries made
in Blocks 1 through 52. When requisitioning equipment from excess
listings, identify the issuing office, list number, date, control
number, and item number assigned to the equipment. When requesting
equipment from DOD inventories, refer to DOD instructions.

**Subpart 1845.72\--Contract Property Management**

**1845.7201 Definitions.**

**\"Supporting responsibility,\"** as used in this subpart, relates to
the assignment of a subcontract, or a portion of a prime contract being
performed at a secondary location of the prime contractor, to a property
administrator other than the individual assigned to the prime location.

**\"Property control system,\"** as used in this subpart, identifies a
contractor\'s internal management program encompassing the protection
of, preservation of, accounting for, and control of property from its
acquisition through disposition.

**1845.7202 General.**

This subpart describes major elements of the NASA Contract Property
Management Program. It provides guidance to NASA installation personnel
responsible for NASA contract property (NASA personal property in the
possession of contractors). It applies to all NASA installation
personnel charged with this responsibility, including industrial
property officers and specialists, property administrators, and plant
clearance officers. It also provides detailed procedures for property
administration. The NASA Contract Property Management Program includes
the following three major elements:

\(a\) Performance of property administration and plant clearance by DOD
under delegations from NASA, pursuant to 1842.101.

\(b\) Performance of property administration and plant clearance by NASA
under certain situations, pursuant to **1842.203**.

\(c\) Maintenance of property administration and plant clearance
functional oversight, regardless of delegations.

**1845.7203 Delegations of property administration and plant
clearance.**

When delegated to DOD, property administration and plant clearance are
performed in accordance with DOD\'s regulations and procedures, as
amended by the NASA Letter of Contract Administration Delegation,
Special Instructions on Property Administration and Plant Clearance.
These Special Instructions are developed by the Headquarters Office of
Management Systems and Facilities Logistics Management Office (Code
JLG), and are available from that office upon request. The contracting
officer shall issue the Special Instructions with delegations whenever
Government property will be involved. Additional or more tailored
property instructions are not proscribed but must be coordinated with
Code JLG before issuance.

**1845.7204 Retention of property administration and plant clearance.**

NASA may occasionally retain the property administration and plant
clearance function, such as for contract work performed at the
installation awarding the contract and not subject to the clause at
1852.245-71, Installation-Accountable Government Property. In these
cases, property administration shall be performed in accordance with
1845.3 through 1845.6, and plant clearance shall be performed in
accordance with FAR Subpart 45.6 and 1845.6. Under the clause at
1852.245-71, property administration and plant clearance are neither
delegated nor retained; they are simply not required because the
property is treated as installation rather than contract property.

**1845.7205 Functional oversight of property administration and plant
clearance.**

NASA contracting officers retain functional management responsibility
for their contracts. Utilization of the contract administration services
of another Government agency in no way relieves NASA contracting
officers of their ultimate responsibility for the proper and effective
management of contracts. The functional management responsibility for
contract property is described in this section. Beyond individual
contracting officers, each NASA installation has designated an
industrial property officer to manage and coordinate property matters
among the various contracting officers, technical officials, contractor
officials, and delegated property administrators and plant clearance
officers. Generally, that individual is responsible for the entire
contract property management function outlined below; the installation
is responsible for the entire function regardless of how it is organized
and distributed. The responsibilities are:

\(a\) Provide a focal point for all management of contract property,
including Government property (Government-furnished and
contractor-acquired) provided to universities as well as to industry.

\(b\) Provide guidance to contracting and other personnel on the NASA
property provisions.

\(c\) To the extent feasible, review property provisions of acquisition
plans, solicitations, contracts, and modifications for potential
problems. Propose changes as necessary.

\(d\) To the extent feasible, participate in pre-award
surveys/post-award orientations when significant amounts of Government
property will be involved.

\(e\) Ensure that vesting-of-title determinations are made and
documented pursuant to FAR 35.014(b).

\(f\) Maintain effective communications with delegated property
administrators and plant clearance officers to keep fully informed about
contractor performance and progress on any property control problems.

\(1\) Obtain and review property control system survey summaries for all
contracts for which property administration has been delegated. Advise
Code JLG of any severe or continuing problems.

\(2\) Provide property administrators copies of all pertinent contract
property documentation.

\(g\) Review and analyze NASA Form 1018, NASA Property in the Custody of
Contractors.

\(h\) Negotiate, or ensure the negotiation of, facilities contracts when
required by FAR 45.302 and 1845.302. Advise Code JLG annually of new and
completed facilities contracts.

\(i\) Review property administrators\' approvals of relief of
responsibility for lost, damaged, and destroyed property and question
any excessive or repetitive approvals.

\(j\) When appropriate, make recommendations to source and performance
evaluation boards

regarding property management and award fee criteria and evaluations
regarding property management.

\(k\) Monitor plant clearance status to preclude delays in contract
closeout.

\(l\) Maintain contract property files for all transactions and
correspondence associated with each contract. Upon receipt of Standard
Form 1424, Inventory Disposal Report, and DD Form 1593, Contract
Administration Completion Record, or equivalents, merge all property
records for the contract and forward for inclusion with the official
completed file.

\(m\) Perform on-site property administration and plant clearance when
they are not delegated to DOD and the property is not subject to the
clause at 1852.245-71.

1845.7206 Responsibilities of property administrators and plant
clearance officers.

**1845.7206-1 Property administrators.**

\(a\) When property administration is not delegated to DOD, the property
administrator shall evaluate the contractor\'s management and control of
Government property and ascertain whether the contractor is effectively
complying with the contract provisions. The property administrator\'s
responsibilities include\--

\(1\) Developing and applying a system survey program for each
contractor under the property administrator\'s cognizance;

\(2\) Evaluating the contractor\'s property control system and approving
or recommending disapproval;

\(3\) Advising the contracting officer of any (i) contractor
noncompliance with approved procedures and (ii) other significant
problems the property administrator cannot resolve, and recommending
appropriate action, which may include disapproval of the contractor\'s
property control system;

\(4\) Resolving property administration matters as necessary with the
contractor\'s management, personnel from Government procurement and
logistics activities, and representatives of the NASA Headquarters
Office of the Inspector General, the Defense Contract Audit Agency
(DCAA), and other Government agencies; and

\(5\) Recognizing the functions of other Government personnel having
cognizance of Government property and obtaining their assistance when
required. (These functions include, but are not limited to, contract
audit, quality assurance, engineering, pricing, and other technical
areas. Assistance and advice on matters involving analyses of the
contractor\'s books and accounting records and on any other audit
matters deemed appropriate shall be obtained from the cognizant
auditor.)

\(b\) The participation of property administrators (or other Government
industrial property personnel) in pre-award surveys/post-award
orientations is required whenever significant amounts of Government
property will be involved, in order to reveal and resolve property
management problems early in the acquisition cycle.

**1845.7206-2 Plant clearance officers.**

When plant clearance is not delegated to DOD, NASA plant clearance
officers shall be responsible for\--

\(a\) Providing the contractor with instructions and advice regarding
the proper preparation of inventory schedules;

\(b\) Accepting or rejecting inventory schedules;

\(c\) Conducting or arranging for inventory verification;

\(d\) Initiating prescribed screening and effecting resulting actions;

\(e\) Final plant clearance of contractor inventory;

\(f\) Pre-inventory scrap determinations, as appropriate;

\(g\) Evaluating the adequacy of the contractor\'s procedures for
property disposal;

\(h\) Determining the method of disposal;

\(i\) Surveillance of any contractor-conducted sales;

\(j\) Accounting for all contractor inventory reported by the
contractor;

\(k\) Advising and assisting, as appropriate, the contractor, the Supply
and Equipment Management Officer (SEMO) and other Federal agencies in
all actions relating to the proper and timely disposal of contractor
inventory;

\(l\) Approving the method of sale, evaluating bids, and approving sale
prices for any contractor-conducted sales;

\(m\) Recommending the reasonableness of selling expenses related to any
contractor-conducted sales;

\(n\) Securing antitrust clearance, as required; and

\(o\) Advising the contracting officer on all property disposal matters.

**1845.7207 Declaration of excess property.**

A problem often disclosed by system analysis is the failure of a
contractor to report Government property not needed in performance of
the contract (excess). The property administrator shall fully document
and report any such finding to the administrative contracting officer.
After a report of excess received from a contractor has been referred to
the plant clearance officer for screening and ultimate disposition, the
property administrator shall ensure prompt disposition. For centrally
reportable plant equipment, the property administrator shall\--

\(a\) Assure the preparation and submission of individual reports
required of the contractor;

\(b\) Verify the permit certifications required by the forms; and

\(c\) Transmit the report to the NASA Industrial Property Officer.

**1845.7208 Closure of contracts.**

**1845.7208-1 Completion or termination.**

Upon completion or termination of a contract, the property administrator
shall\--

\(a\) Monitor the actions of the contractor in returning excess
Government property not referred to the plant clearance officer; and

\(b\) Advise the cognizant plant clearance officer as to the existence
at a contractor\'s plant of residual property requiring disposal.

**1845.7208-2 Final review and closing of contracts.**

\(a\) When informed that disposition of Government property under a
contract has been completed, the property administrator shall perform a
final review and sign a determination that\--

\(1\) Disposition of Government property has been properly accomplished
and documented;

\(2\) Adjustment documents, including any request of the contractor for
relief from responsibility, have been processed to completion;

\(3\) Proceeds from disposals or other property transactions, including
adjustments, have been properly credited to the contract or paid to the
Government as directed by the contracting officer;

\(4\) All questions regarding title to property fabricated or acquired
under the contract have been resolved and appropriately documented; and

\(5\) The contract property control record file is complete and ready
for retirement.

\(b\) When final review pursuant to paragraph (a) of this section
reveals that such action is proper, the property administrator shall
accomplish and sign a DD Form 1593, Contract Administration Completion
Record, or equivalent.

\(c\) The executed DD Form 1593 shall be forwarded to the contracting
officer, the Property Summary Data Record shall be so annotated, and the
contracting officer shall include it in the contract file.

**1845.7209 Special subjects.**

**1845.7209-1 Government property at alternate locations of the prime
contractor and subcontractor plants.**

\(a\) Government property provided to a prime contractor may be located
at other plants of the prime contractor or at subcontractor locations.
The prime contractor is accountable and responsible to the Government
for this property.

\(b\) A Government property administrator cognizant of the location of
the property shall normally be designated to (1) perform required
surveys of the property control system and (2) exercise surveillance
over the property as a supporting responsibility.

\(c\) If the property administrator determines that supporting property
administration is required, he or she shall write the cognizant contract
administration office asking that a property administrator be assigned.
The request for supporting property administration shall include\--

\(1\) The name and address of the prime contractor;

\(2\) The prime contract number;

\(3\) The name and address of the alternate location of the prime
contractor, or of the subcontractor where the property will be located;

\(4\) A listing of the property being furnished, or, if property is
being acquired locally, a statement to this effect; and

\(5\) A copy of the subcontract or other document under which the
property will be furnished or acquired.

\(d\) Concurrent with the action cited in paragraph (c) of this section,
the property administrator shall ascertain whether the prime contractor
will perform the necessary reviews and surveillance with the
contractor\'s own personnel, or elect to rely upon the system approval
and continuing surveillance by a supporting property administrator of
the property control system at the alternate location or subcontractor
plant. If the prime contractor advises that it will accept the findings
of a supporting property administrator, a statement in writing to that
effect shall be obtained. If the prime contractor does not so elect, it
shall be required to perform the requisite reviews and surveillance and
document its actions and findings.

\(e\) If a single item or limited quantities of property will be located
at an alternate location or subcontractor plant, the property
administrator may determine that supporting property administration is
unnecessary, provided\--

\(1\) The prime contractor\'s records adequately reflect the location
and use of the property;

\(2\) The nature of the property is such that the possibility of its use
for unauthorized purposes is unlikely; and

\(3\) The nature of the property is such that a program of preventive
maintenance is not required.

\(f\) When supporting property administration will not be requested, the
services of a property administrator in the contract administration
office cognizant of the site where the property is located may be
requested on an occasional basis for special reviews or such other
support as may be necessary. Repeated requests for assistance indicate a
requirement for requesting supporting property administration.

**1845.7209-2 Loss, damage, or destruction of Government property.**

\(a\) Normally, contract provisions provide for assumption of risk of
loss, damage, or destruction of Government property as described by the
following:

\(1\) Sealed-bid and certain negotiated fixed-price contracts provide
that the contractor assumes the risk for all Government property
provided under the contract (see the clause at FAR 52.245-2, Government
Property (Fixed-Price Contracts)).

\(2\) Other negotiated fixed-price contracts provide that the contractor
assumes the risk for all Government property provided under the
contract, with the exceptions set forth in the clause at [FAR
52.245-2](http://www.arnet.gov/far/current/html/52_245.html#1046483),
Alternate I and Alternate II.

\(3\) Cost-reimbursement contracts (see the clause at FAR 52.245-5,
Government Property (Cost-Reimbursement, Time-and-Material, or
Labor-Hour Contracts)) provide that the Government assumes the risk for
all Government property provided under the contract when there is no
willful misconduct or lack of good faith of any of the contractor\'s
managerial personnel as defined in the contract.

\(4\) There are certain events for which the Government does not assume
the risk of loss, damage, or destruction of Government property, such as
risks the contract expressly requires the contractor to insure against.
Therefore, before reaching a conclusion or making a determination, the
contracting officer shall obtain property administrator review of the
contract clause and shall obtain advice from appropriate legal counsel
on questions of legal meaning or intent.

\(5\) \"Willful misconduct\" may involve any intentional or deliberate
act or failure to act causing, or resulting in, loss, damage, or
destruction of Government property.

\(6\) \"Lack of good faith\" may involve gross neglect or disregard of
the terms of the contract or of appropriate directions of the
contracting officer or the contracting officer\'s authorized
representatives. Examples of lack of good faith may be demonstrated by
the failure of the contractor\'s managerial personnel to establish and
maintain proper training and supervision of employees and proper
application of controls in compliance with instructions issued by
authorized Government personnel.

\(b\) If part of the contractor\'s system is found to be unsatisfactory,
the property administrator shall increase surveillance of that part to
prevent, to the extent possible, any loss, damage, or destruction of
Government property. The property administrator shall give special
attention to reasonably ensuring that any loss, damage, or destruction
occurring during a period when a contractor\'s system is not approved is
identified before approval or reinstatement of approval.

**1845.7209-3 Loss, damage, or destruction of Government property while
in contractor\'s possession or control.**

\(a\) The property administrator shall require the contractor to report
any loss, damage, or destruction of Government property in its
possession or control (including property in the possession or control
of subcontractors) as soon as it becomes known.

\(b\) When physical inventories, consumption analyses, or other actions
disclose consumption of Government property considered unreasonable by
the property administrator or loss, damage, or destruction of Government
property not reported by the contractor, the property administrator
shall prepare a statement of the items and amount involved. This
statement shall be furnished to the contractor for investigation and
submission of a written report to the property administrator relative to
the incidents reported.

\(c\) The contractor\'s reports referenced in paragraphs (a) and (b) of
this section shall contain factual data as to the circumstances
surrounding the loss, damage, destruction, or excessive consumption,
including\--

\(1\) The contractor\'s name and the contract number;

\(2\) A description of items lost, damaged, destroyed, or unreasonably
consumed;

\(3\) The cost of property lost, damaged, destroyed, or unreasonably
consumed and cost of repairs in instances of damage (in event actual
cost is not known, use a reasonable estimate);

\(4\) The date, time (if pertinent), and cause or origin of the loss,
damage, destruction, or consumption;

\(5\) Known interests in any commingled property of which the Government
property lost, damaged, destroyed, or unreasonably consumed is (or was)
a part;

\(6\) Insurance, if any, covering the Government property or any part or
interest in any commingled property;

\(7\) Actions taken by the contractor to prevent further loss, damage,
destruction, or unreasonable consumption and to prevent repetition of
similar incidents; and

\(8\) Other facts or circumstances relevant to determining liability and
responsibility for repair or replacement.

\(d\) The property administrator shall investigate the incident to the
degree required to reach a valid and supportable conclusion as to the
contractor\'s liability for the loss, damage, destruction, or
unreasonable consumption under the terms of the contract, and the course
of action required to conclude the adjustment action. When required, the
assistance of the quality assurance representative, industrial
specialist, insurance officer, legal counsel, or other technician will
be secured. When the contractor acknowledges liability, the property
administrator shall forward a copy of the credit memorandum or other
adjusting document to the administrative contracting officer and
auditor, if appropriate, to assure proper credit. If analysis of
contract provisions and circumstances establishes that the loss, damage,
destruction, or consumption constitutes a risk assumed by the
Government, the property administrator shall so advise the contractor in
writing, thereby relieving the contractor of responsibility for the
property. A copy of the documentation and notification to the contractor
shall be retained in the Contract Property Control Data File for the
contract.

(e)(1) If the property administrator concludes that the contractor is
liable for the loss, damage, destruction, or unreasonable consumption of
Government property, he or she shall forward the complete file with
conclusions and recommendations to the contracting officer for review
and determination. The file shall contain\--

\(i\) A statement of facts as supported by investigation;

\(ii\) Recommendations as to the contractor\'s liability and its amount;

\(iii\) Recommendations as to action to be taken with regard to third
party liability, if appropriate;

\(iv\) Requirements for disposition, repair, or replacement of damaged
property; and

\(v\) Other pertinent comments.

\(2\) A copy of the contracting officer\'s determination shall be
furnished to the contractor and the property administrator, and a copy
shall be retained in the contracting officer\'s files. The property
administrator\'s copy shall be filed in the Contract Property Control
Data File for the contract when all pertinent actions, such as
compensation to the Government or repair or replacement of the property,
have been completed.

**1845.7209-4 Financial reports.**

The property administrator is responsible for obtaining financial
reports as prescribed in 1845.505-14 for all assigned contracts. Reports
shall be accumulated, reviewed and distributed as required. Contractors
are required to submit separate reports on each contract that contains
the property reporting clause (see 1852.245-73) except as noted in
1845.7101-4(c).

**1845.7210 Contractor utilization of Government property.**

**1845.7210-1 Utilization surveys.**

\(a\) The property administrator is responsible for ensuring that the
contractor has effective procedures for evaluating Government property
utilization. However, when necessary, the contract administration office
shall provide specialists qualified to perform the technical portion of
utilization surveys to assist the property administrator in determining
the adequacy of these procedures.

\(b\) Upon assignment of an initial contract under which
Government-owned plant equipment in particular will be provided to a
contractor, the property administrator shall ensure that the contractor
has established effective procedures and techniques for controlling its
utilization. The property administrator, with the assistance of
technical specialists, if necessary, shall evaluate these procedures. A
record of the evaluation shall be prepared and become a part of the
property administration file. If the procedures are determined
inadequate, the record shall identify the deficiencies and the
corrective actions necessary. If the deficiencies are not corrected by
the contractor, the property administrator shall promptly refer the
matter to the contracting officer.

\(c\) The property administrator shall perform annual surveys of the
contractor\'s procedures related to utilization of Government-owned
plant equipment. At contractor facilities having a substantial quantity
of plant equipment, the surveys should normally be

conducted on a continual basis, reviewing equipment utilization records
and physically observing a group of preselected items during each
portion of the survey. Surveys shall be conducted to the degree
determined necessary, considering the findings of prior surveys and the
contractor\'s performance history in identifying and declaring equipment
excess to authorized requirements. The contractor shall be required to
justify, by specific Government programs, the retention of all
Government-owned plant equipment. The property administrator shall make
maximum use of contractor\'s machine loading data, order boards,
production planning records, machine time records, and other production
control methods.

\(d\) The property administrator shall conduct a special survey when a
significant change occurs in the contractor\'s production schedules,
such as a termination, completion of a contract, or a major adjustment
in a program. Special surveys may be limited to a given department,
activity, or division of a contractor\'s operation.

\(e\) In the absence of adequate justification for retention, the
contractor shall identify and report Government-owned plant equipment in
accordance with FAR 45.502(g) and 45.509-2(b)(4). Items that are part of
approved inactive package plants or standby lines are exempted from
utilization surveys. The contracting officer shall ascertain
periodically whether existing authorizations for standby or lay-away
requirements are current.

**1845.7210-2 Records of surveys.**

The property administrator shall prepare a record incorporating written
findings, conclusions, and recommendations at the conclusion of each
survey. If appropriate, the property administrator\'s record may be
limited to a statement expressing concurrence with the reports of other
specialists. The property administrator shall retain one copy of each
record in the property administration file.

\(a\) This clause shall govern with respect to any Government property
furnished to the Contractor for repair or other services that is to be
returned to the Government. Such property, hereinafter referred to as
\"Government property furnished for servicing,\" shall not be subject to
any clause of this contract entitled Government-Furnished Property or
Government Property.

\(b\) The official accountable recordkeeping and financial control and
reporting of the property subject to this clause shall be retained by
the Government. The Contractor shall maintain adequate records and
procedures to ensure that the Government property furnished for
servicing can be readily accounted for and identified at all times while
in its custody or possession or in the custody or possession of any
subcontractor.

\(c\) The Contractor shall be liable for any loss or destruction of or
damage to the Government property furnished for servicing (1) caused by
the Contractor\'s failure to exercise such care and diligence as a
reasonable prudent owner of similar property would exercise under
similar circumstances, or (2) sustained while the property is being
worked upon and directly resulting from that work, including, but not
limited to, any repairing, adjusting, inspecting, servicing, or
maintenance operation. The Contractor shall not be liable for loss or
destruction of or damage to Government property furnished for servicing
resulting from any other cause except to the extent that the loss,
destruction, or damage is covered by insurance (including self-insurance
funds or reserves).

\(d\) In addition to any insurance (including self-insurance funds or
reserves) carried by the Contractor and in effect on the date of this
contract affording protection in whole or in part against loss or
destruction of or damage to such Government property furnished for
servicing, the amount and coverage of which the Contractor agrees to
maintain, the Contractor further agrees to obtain any additional
insurance covering such loss, destruction, or damage that the
Contracting Officer may from time to time require. The requirements for
this additional insurance shall be effected under the procedures
established by the FAR 52.243 changes clause of this contract.

\(e\) The Contractor shall hold the Government harmless and shall
indemnify the Government against all claims for injury to persons or
damage to property of the Contractor or others arising from the
Contractor\'s possession or use of the Government property furnished for
servicing or arising from the presence of that property on the
Contractor\'s premises or property.

**(End of clause)**

**1852.245-73 Financial Reporting of NASA Property in the Custody of
Contractors.**

As prescribed in 1845.106-70(d), insert the following clause:

**FINANCIAL REPORTING OF NASA PROPERTY IN THE**

**CUSTODY OF CONTRACTORS**

**(OCTOBER 2003)**

\(a\) The Contractor shall submit annually a NASA Form (NF) 1018, NASA
Property in the Custody of Contractors, in accordance with the
provisions of 1845.505-14, the instructions on the form, subpart
1845.71, and any supplemental instructions for the current reporting
period issued by NASA.

> (b)(1) Subcontractor use of NF 1018 is not required by this clause;
> however, the Contractor shall include data on property in the
> possession of subcontractors in the annual NF 1018.
>
> \(2\) The Contractor shall mail the original signed NF 1018 directly
> to the cognizant NASA Center Deputy Chief Financial Officer, Finance,
> unless the Contractor uses the NF 1018 Electronic Submission System
> (NESS) for report preparation and submission.

\(3\) One copy shall be submitted (through the Department of Defense
(DOD) Property Administrator if contract administration has been
delegated to DOD) to the following address: \[Insert name and address of
appropriate NASA Center office.\], unless the Contractor uses the NF
1018 Electronic Submission System (NESS) for report preparation and
submission.

(c)(1) The annual reporting period shall be from October 1 of each year
through September 30 of the following year. The report shall be
submitted in time to be received by October 15. The information
contained in these reports is entered into the NASA accounting system to
reflect current asset values for agency financial statement purposes.
Therefore, it is essential that required reports be received no later
than October 15. Some activity may be estimated for the month of
September, if necessary, to ensure the NF 1018 is received when due.
However, contractors procedures must document the process for developing
these estimates based on planned activity such as planned purchases or
NASA Form 533 (NF 533 Contractor Financial Management Report) cost
estimates. It should be supported and documented by historical
experience or other corroborating evidence, and be retained in
accordance with FAR Subpart 4.7, Contractor Records Retention.
Contractors shall validate the reasonableness of the estimates and
associated methodology by comparing them to the actual activity once
that data is available, and adjust them accordingly. In addition,
differences between the estimated cost and actual cost must be adjusted
during the next reporting period. Contractors shall have formal policies
and procedures, which address the validation of NF 1018 data, including
data from subcontractors, and the identification and timely reporting of
errors. The objective of this validation is to ensure that information
reported is accurate and in compliance with the NASA FAR Supplement. If
errors are discovered on NF 1018 after submission, the contractor shall
contact the cognizant NASA Center Industrial Property Officer (IPO)
within 30 days after discovery of the error to discuss corrective
action.

\(2\) The Contracting Officer may, in NASA's interest, withhold payment
until a reserve not

exceeding \$25,000 or 5 percent of the amount of the contract, whichever
is less, has been set aside, if the Contractor fails to submit annual NF
1018 reports in accordance with 1845.505-14 and any supplemental
instructions for the current reporting period issued by NASA. Such
reserve shall be withheld until the Contracting Officer has determined
that NASA has received the required reports. The withholding of any
amount or the subsequent payment thereof shall not be construed as a
waiver of any Government right.

\(d\) A final report shall be submitted within 30 days after disposition
of all property subject to reporting when the contract performance
period is complete in accordance with (b)(1) through (3) of this clause.

**(End of clause)**

**1852.245-74 Contractor Accountable On-Site Government Property.**

As prescribed in 1845.106-70(e), insert the following clause:

**CONTRACTOR ACCOUNTABLE ON-SITE GOVERNMENT PROPERTY**

**(MARCH 1989)**

\(a\) In performance of work under this contract, certain Government
property identified in the contract shall be provided to the Contractor
on a no-charge-for-use basis by the installation\'s Supply and Equipment
Management Officer. That property shall be utilized in the performance
of this contract at the installation that provided the property or at
such other installations or locations as may be specified elsewhere in
this contract. The Contractor assumes accountability and user
responsibilities for the property.

\(b\) Government property provided shall in every respect be subject to
the provisions of the FAR 52.245 Government property clause of this
contract. In addition, the contractor is responsible for managing this
property in accordance with the guidelines provided by the
installation\'s Supply and Equipment Management Officer or any other
formally designated representatives of the Contracting Officer. The
guidelines include but are not limited to requiring the Contractor to\--

\(1\) Use economic order quantity (EOQ) methods for routine stock
replenishment;

\(2\) Utilize the Federal Cataloging System;

\(3\) Comply with shelf-life requirements;

\(4\) Provide for accountability and control (using the NASA Equipment
Management

System (NEMS)) of all equipment costing \$1000 and over, plus that
equipment designated as \"sensitive\";

\(5\) Provide for physical inventory of all controlled equipment at
least every 3 years;

\(6\) Provide for sample inventories of materials plus complete
inventories every 5 years;

\(7\) Conduct walk-through utilization inspections;

\(8\) Screen NEMS before acquiring any equipment costing \$1000 or over,
plus equipment designated by the installation as sensitive and costing
\$500 and over;

\(9\) Support the Equipment Acquisition Document (EAD) process; and

\(10\) Use Government sources as the first source of supply.

\(c\) Data requirements relating to the guidelines in paragraph (b) of
this clause are specified under Section F, Deliveries or performance.

**(End of clause)**

**1852.245-75  Title to Equipment.**

As prescribed in 1845.106-70(f), insert the following clause:

**TITLE TO EQUIPMENT**

**(MARCH 1989)**

\(a\) In accordance with the FAR 52.245 Government property clause of
this contract, title to equipment and other tangible personal property
acquired by the Contractor with funds provided for conducting research
under this contract and having an acquisition cost less than
\$ [     ]{.underline} \[Insert a dollar value not less than \$5,000\]
shall vest in the Contractor upon acquisition, provided that the
Contractor has complied with the requirements of the FAR 52.245
Government property clause.

\(b\) Upon completion or termination of this contract, the Contractor
shall submit to the Contracting Officer a list of all equipment with an
acquisition cost of \$ [     ]{.underline} \[Insert the dollar value
specified in paragraph (a)\] or more acquired under the contract during
the contract period. The list shall include a description, manufacturer
and model number, date acquired, cost, and condition information, and
shall be submitted within 30 calendar days after completion or
termination of the contract, in accordance with Federal Acquisition
Regulation subsection 45.606-5.

\(c\) Title to the property specified in paragraph (b) of this clause
vests in the Contractor, but the Government retains the right to direct
transfer of title to property specified in paragraph (b) of this clause
to the Government or to a third party within 180 calendar days after
completion or termination of the contract. Such transfer shall not be
the basis for any claim by the Contractor.

\(d\) Title to all Government-furnished property remains vested with the
Government (see the FAR 52.245 Government property clause).

\(e\) Title to the contractor-acquired property listed below shall vest
with the Government.

\[List any contractor-acquired property for which vesting of title with
the Government is appropriate or insert \"None\"\]

**(End of clause)**

**1852.245-76  List** **of Government-Furnished Property.**

As prescribed in 1845.106-70(g), insert the following clause:

**LIST OF GOVERNMENT-FURNISHED PROPERTY**

**(OCTOBER 1988)**

For performance of work under this contract, the Government will make
available Government property identified below or in Attachment
[     ]{.underline} \[Insert attachment number or \"not applicable\"\]
of this contract on a no-charge-for-use basis. The Contractor shall use
this property in the performance of this contract at
[          ]{.underline} \[Insert applicable site(s) where property will
be used\] and at other location(s) as may be approved by the Contracting
Officer. Under the FAR 52.245 Government property clause of this
contract, the Contractor is accountable for the identified property.

  --------------------------- -------------- ---------------------- --------------------------
  **  Item               **   **Quantity**   **Acquisition Cost**   **Date to be Furnished to
                                                                    the Contractor**

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

\[Insert a description of the item(s), quantity, acquisition cost, and
date the property will be furnished to the Contractor\]

**(End of clause)**

**1852.245-77 List of Installation-Accountable Property and Services.**

As prescribed in 1845.106-70(h), insert the following clause:

**LIST OF INSTALLATION-ACCOUNTABLE PROPERTY AND SERVICES**

**(JULY 1997)**

In accordance with the clause at 1852.245-71, Installation-Accountable
Government Property, the Contractor is authorized use of the types of
property and services listed below, to the extent they are available, in
the performance of this contract within the physical borders of the
installation which may include buildings and space owned or directly
leased by NASA in close proximity to the installation, if so designated
by the Contracting Officer.

\(a\) Office space, work area space, and utilities. Government
telephones are available for official purposes only; pay telephones are
available for contractor employees for unofficial calls.

\(b\) General- and special-purpose equipment, including office
furniture.

\(1\) Equipment to be made available is listed in Attachment
[     ]{.underline} \[Insert attachment number or \"not applicable\" if
no equipment is provided\]. The Government retains accountability for
this property under the clause at 1852.245-71, Installation-Accountable
Government Property, regardless of its authorized location.

\(2\) If the Contractor acquires property, title to which vests in the
Government pursuant to other provisions of this contract, this property
also shall become accountable to the Government upon its entry into
Government records as required by the clause at 1852.245-71,
Installation-Accountable Government Property.

\(3\) The Contractor shall not bring to the installation for use under
this contract any property owned or leased by the Contractor, or other
property that the Contractor is accountable for under any other
Government contract, without the Contracting Officer\'s prior written
approval.

\(c\) Supplies from stores stock.

\(d\) Publications and blank forms stocked by the installation.

\(e\) Safety and fire protection for Contractor personnel and
facilities.

\(f\) Installation service facilities: [                  ]{.underline}
\[Insert the name of the facilities or \"None\"\].

\(g\) Medical treatment of a first-aid nature for Contractor personnel
injuries or illnesses sustained during on-site duty.

\(h\) Cafeteria privileges for Contractor employees during normal
operating hours.

\(i\) Building maintenance for facilities occupied by Contractor
personnel.

\(j\) Moving and hauling for office moves, movement of large equipment,
and delivery of supplies. Moving services shall be provided on-site, as
approved by the Contracting Officer.

\(k\) The user responsibilities of the Contractor are defined in
paragraph (a) of the clause at 1852.245-71, Installation-Accountable
Government Property.

**(End of clause)**

**1852.245-79 Use of Government-Owned** **Property.**

As prescribed in 1845.106-70(i), insert the following provision:

**USE OF GOVERNMENT-OWNED PROPERTY**

**(JULY 1997)**

\(a\) The offeror ( ) does, ( ) does not intend to use in performance of
any contract awarded as a result of this solicitation existing
Government-owned facilities (real property or plant equipment), special
test equipment, or special tooling (including any property offered by
this solicitation). The offeror shall identify any offered property not
intended to be used. If the offeror does intend to use any of the above
items, the offeror must furnish the following information required by
Federal Acquisition Regulation (FAR) 45.205(b), and NASA FAR Supplement
(NFS) 1845.102-71:

\(1\) Identification and quantity of each item. Include the item\'s
acquisition cost if it is not property offered by this solicitation.

\(2\) For property not offered by this solicitation, identification of
the Government contract under which the property is accountable and
written permission for its use from the cognizant Contracting Officer.

\(3\) Amount of rent, calculated in accordance with FAR 45.403 and the
clause at FAR 52.245-9, Use and Charges, unless the property has been
offered on a rent-free basis by this solicitation.

\(4\) The dates during which the property will be available for use, and
if it is to be used in more than one contract, the amounts of respective
uses in sufficient detail to support proration of the rent. This
information is not required for property offered by this solicitation.

\(b\) The offeror ( ) does, ( ) does not request additional
Government-provided property for use in performing any contract awarded
as a result of this solicitation. If the offeror requests additional
Government-provided property, the offeror must furnish \--

\(1\) Identification of the property, quantity, and estimated
acquisition cost of each item; and

\(2\) The offeror\'s written statement of its inability to obtain
facilities as prescribed by FAR 45.302-1(a)(4).

\(c\) If the offeror intends to use any Government property (paragraph
(a) or (b) of this provision), the offer must also furnish the
following:

\(1\) The date of the last Government review of the offeror\'s property
control and accounting system, actions taken to correct any deficiencies
found, and the name and telephone number of the cognizant property
administrator.

\(2\) A statement that the offeror has reviewed, understands, and can
comply with all property management and accounting procedures in the
solicitation, FAR Subpart 45.5, and NFS Subparts 1845.5 and 1845.71.

\(3\) A statement indicating whether or not the costs associated with
paragraph (c)(2) of this provision, including plant clearance and/or
plant reconversion costs, are included in its cost proposal.

**(End of provision)**

**1852.245-80** **Use of Government Production and Research Property on
a No-Charge** **Basis.**

As prescribed in 1845.106-70(k), insert the following clause:

**USE OF GOVERNMENT PRODUCTION AND RESEARCH PROPERTY ON A**

**NO-CHARGE BASIS**

**(MARCH 1989)**

In performing this contract, the Contractor is authorized to use on a
no-charge, noninterference basis the Government-owned production and
research property provided to the Contractor under the contract(s)
specified below and identified in the cognizant Contracting Officer\'s
letter approving use of the property. Use is authorized on the basis
that it will not interfere with performance of the Government
contract(s) under which the property was originally furnished. Use shall
be in accordance with the terms and conditions of these contracts and
the cognizant Contracting Officer\'s approval letter.

Contract No(s): \[Insert the contract number(s) under which the
Government property is accountable\].

**(End of clause)**

**1852.246-70 Mission Critical Space System Personnel Reliability
Program.**

As prescribed in 1846.370(a), insert the following clause:

**MISSION CRITICAL SPACE** **SYSTEM PERSONNEL RELIABILITY PROGRAM**

**(MARCH 1997)**

\(a\) In implementation of the Mission Critical Space System Personnel
Reliability Program, described in 14 CFR 1214.5, the Government shall
identify personnel positions that are mission critical. Some of the
positions as identified may now or in the future be held by employees of
the Contractor. Upon notification by the Contracting Officer that a
mission-critical position is being or will be filled by one or more of
the Contractor\'s employees, the Contractor shall (1) provide the
affected employees with a clear understanding of the investigative and
medical requirements and, (2), to the extent permitted by applicable
law, assist the Government by furnishing personal data and medical
records.

\(b\) The standard that will be used in certifying individuals for a
mission-critical position is that they must be determined to be
suitable, competent, and reliable in the performance of their assigned
duties in accordance with the screening requirements 14 CFR 1214.5. If
the Government determines that a Contractor employee occupying or
nominated to occupy a mission-critical position will not be certified
for such duty, the Contracting Officer shall (1) furnish to the employee
the specific reasons for its action; (2) advise the employee that he/she
may avail himself/herself of the review procedures that are a part of
the certification system; and (3) furnish him/her a copy of those
procedures upon request.

\(c\) If a Contractor employee who has been nominated for (but has not
yet filled) a mission-critical position is not certified, the Contractor
agrees to defer the appointment to the position until the employee has
had an opportunity to pursue the referenced procedures. If the employee
is an incumbent to the position, the Contractor agrees, upon the request
of the Government, to remove him/her from the position temporarily
pending an appeal of the action under the review procedures. If any
employee not certified elects not to take action under the procedures,
or, if having taken action, is not successful in obtaining a reversal of
the determination, the Contractor agrees not to appoint the employee to
the position, or if already appointed, to promptly remove the employee.

**(End of clause)**

**1852.246-71 Government Contract Quality** **Assurance** **Functions.**

As prescribed in 1846.470, insert the following clause:

**GOVERNMENT CONTRACT** **QUALITY ASSURANCE** **FUNCTIONS**

**(OCTOBER 1988)**

In accordance with the inspection clause of this contract, the
Government intends to perform the following functions at the locations
indicated:

  ------------- -------------------------------------- ------------------
  **Item**      **Quality Assurance Location**         ** Function  **

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

\[Insert the items involving quality assurance, the quality assurance
functions, and where the functions will be performed.\]

**(End of clause)**

**1852.246-72** **Material Inspection and** **Receiving Report.**

As prescribed in 1846.674, insert the following clause:

**MATERIAL INSPECTION AND RECEIVING REPORT**

**(AUGUST 2003)**

\(a\) At the time of each delivery to the Government under this
contract, the Contractor shall furnish a Material Inspection and
Receiving Report (DD Form 250 series) prepared in [   ]{.underline}
\[Insert number of copies, including original\] copies, an original and
[   ]{.underline} copies \[Insert number of copies\].

\(b\) The Contractor shall prepare the DD Form 250 in accordance with
NASA FAR Supplement 1846.6. The Contractor shall enclose the copies of
the DD Form 250 in the package or seal them in a waterproof envelope,
which shall be securely attached to the exterior of the package in the
most protected location.

\(c\) When more than one package is involved in a shipment, the
Contractor shall list on the DD Form 250, as additional information, the
quantity of packages and the package numbers. The Contractor shall
forward the DD Form 250 with the lowest numbered package of the shipment
and print the words \"CONTAINS DD FORM 250\" on the package.

**(End of clause)**

**1852.246-73 Human Space Flight Item.**

As prescribed in 1846.370(b), insert the following clause:

**HUMAN SPACE FLIGHT ITEM**

**(MARCH 1997)**

The Contractor shall include the following statement in all subcontracts
and purchase orders placed by it in support of this contract, without
exception as to amount or subcontract level:

\"FOR USE IN HUMAN SPACE FLIGHT; MATERIALS, MANUFACTURING, AND
WORKMANSHIP OF HIGHEST QUALITY STANDARDS ARE ESSENTIAL TO ASTRONAUT
SAFETY.

IF YOU ARE ABLE TO SUPPLY THE DESIRED ITEM WITH A HIGHER QUALITY THAN
THAT OF THE ITEMS SPECIFIED OR PROPOSED, YOU ARE REQUESTED TO BRING THIS
FACT TO THE IMMEDIATE ATTENTION OF THE PURCHASER.\"

**(End of clause)**

**1852.247-71 Protection of the Florida** **Manatee.**

As prescribed in 1847.7001, insert the following clause:

**PROTECTION OF THE FLORIDA MANATEE**

**(MARCH 1989)**

\(a\) Pursuant to the Endangered Species Act of 1973 (Pub. L. 93-205),
as amended, and the Marine Mammals Protection Act of 1972 (Pub. L.
92-522), the Florida Manatee (Trichechus Manatus) has been designated an
endangered species, and the Banana and Indian Rivers within and adjacent
to NASA\'s Kennedy Space Center (KSC) have been designated as a critical
habitat of the Florida Manatee.

\(b\) Contractor personnel involved in vessel operations, dockside work,
and selected disassembly functions shall be provided training relative
to (1) habits and characteristics of the Florida Manatee, (2) provisions
of the applicable laws, (3) personal liability of workers under the
laws, and (4) operational restrictions imposed by KSC.

\(c\) All vessel operations shall be conducted within the posted speed
restrictions, and vessels shall be operated at minimum controllable
speeds in all KSC waters. Shallow-water operations are prohibited.

\(d\) Training will be conducted by personnel of the U.S. Fish and
Wildlife Service (USFWS). The contractor agrees to cooperate with the
USFWS by allowing access at reasonable times and places (including
shipboard) to USFWS personnel, and by making available such contractor
personnel as are required to have the training. Arrangements for
training will be made as follows:

\(1\) For personnel involved in tug, barge, or marine operations,
through the Lockheed Space Operations Contractor, Transportation
Coordination Center, Kennedy Space Center, Florida, telephone (407)
867-5330.

\(2\) For all other personnel, through the Systems Training and Employee
Development Branch, Code PM-TNG, telephone (407) 867-2737.

\(e\) The contractor shall incorporate the provisions of this clause in
applicable subcontracts (including vendor deliveries).

**(End of clause)**

**1852.247-72** **Advance Notice of** **Shipment.**

As prescribed in 1847.305-70(a), insert the following clause:

**ADVANCE NOTICE OF SHIPMENT**

**(OCTOBER 1988)**

[        ]{.underline} \[Insert number of work days\] work days prior to
shipping item(s) [      ]{.underline} \[Insert items to be shipped\],
the Contractor shall furnish the anticipated shipment date, bill of
lading number (if applicable), and carrier identity to
[                ]{.underline} \[Insert individual(s) to receive
notification\] and to the Contracting Officer.

**(End of clause)**

**1852.247-73** **Bills of Lading.**

As prescribed in 1847.305-70(b), insert a clause substantially as
follows:

**BILLS OF LADING**

**(JUNE 2002)**

The purpose of this clause is to define when a commercial bill of lading
or a government bill of lading is to be used when shipments of
deliverable items under this contract are f.o.b. origin.

\(a\) **Commercial Bills of Lading**. All domestic shipments shall be
made via commercial

bills of lading (CBLs). The Contractor shall prepay domestic
transportation charges. The Government shall reimburse the Contractor
for these charges if they are added to the invoice as a separate line
item supported by the paid freight receipts. If paid receipts in support
of the invoice are not obtainable, a statement as described below must
be completed, signed by an authorized company representative, and
attached to the invoice.

\"I certify that the shipments identified below have been made,
transportation charges have been paid by (company name), and paid
freight or comparable receipts are not obtainable.

Contract or Order Number: [                    ]{.underline}

Destination:[               ]{.underline} \".

\(b\) **Government Bills of Lading.** (1) International (export) and
domestic overseas shipments of items deliverable under this contract
shall be made by Government bills of lading (GBLs). As used in this
clause, "domestic overseas" means non-continental United States, i.e.
Hawaii, Commonwealth of Puerto Rico, and possessions of the United
States.

\(2\) At least 15 days before shipment, the Contractor shall request in
writing GBLs from: [               ]{.underline} \[Insert name, title,
and mailing address of designated transportation officer or other
official delegated responsibility for GBLs\]. If time is limited,
requests may be by telephone: [             ]{.underline} \[Insert
appropriate telephone number\]. Requests for GBLs shall include the
following information.

\(i\) Item identification/ description.

\(ii\) Origin and destination.

\(iii\) Individual and total weights.

\(iv\) Dimensional Weight.

\(v\) Dimensions and total cubic footage.

\(vi\) Total number of pieces.

\(vii\) Total dollar value.

\(viii\) Other pertinent data.

**(End of clause)**

**1852.249-72** **Termination** **(Utilities).**

As prescribed in 1849.505-70, insert the following clause. The period of
30 days may be varied not to exceed 90 days.

**TERMINATION (UTILITIES)**

**(MARCH 1989)**

The Government, at its option, may terminate this contract by giving
written notice not less than 30 days in advance of the termination\'s
effective date.

**(End of clause)**

**Subpart 1852.3**\--**Provision and Clause Matrix**

**1852.300 Scope of subpart.**

The matrix in this subpart contains a column for each principal type
and/or purpose of contract. See the first page of the matrix for the key
to column headings, the dollar threshold chart, and requirement symbols.