**1852.245-73 FINANCIAL REPORTING OF NASA PROPERTY IN THE**

**CUSTODY OF CONTRACTORS**

**(AUGUST 2001) (DEVIATION)**

** **

\(a\) 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
immediately contact the cognizant NASA Center Industrial Property
Officer (IPO) to discuss corrective action.

(2) (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)**