Previous PageTable Of ContentsNext Page

NMCARS PART 5245 GOVERNMENT PROPERTY



PART 5245 GOVERNMENT PROPERTY

SUBPART 5245.3--PROVIDING GOVERNMENT PROPERTY TO CONTRACTORS

5245.302 Providing facilities.

5245.302-1 Policy.

(a)(4) The requirement for a determination and findings (D&F) applies to new facilities or existing facilities, and to extending the authorized period of use. The D&F requirement does not apply to contracts awarded under the A-76 Commercial Activities Program. The D&F shall be made by both a contracting official at least one level above the contracting officer and the program manager. These two officials are the agency head's designees for issuing the D&F.

5245.302-1 (DFARS 245.302-1) Policy.

(a)(4)(A)(S-90) DASN(ACQ) and the Commandant of the Marine Corps may approve facility projects not exceeding $3 million at any one location during one fiscal year. The Chief of Naval Research, the Commanders, Naval Systems Commands, and Director, Strategic Systems Program may approve facility projects (including research and development) that do not exceed $2 million at any one location during one fiscal year.

(a)(4)(A)(2) Submit requests via DASN(ACQ).

5245.303 Providing material.

5245.303-1 Policy.

(90) DoN implementation. Decisions to provide Government property shall be fully documented in the contract file. Any decision to provide readily available commercial items as Government property requires detailed analysis and written justification supporting the decision and approved by the commander of the requiring activity, or a designated representative as being in the best interest of the Government.

5245.311 Providing Government property by transfer.

(1) Policy. Government property shall not be transferred between contracts unless approval for retention is obtained, adequate consideration is received and proper identification is maintained.

(2) Contracts may not authorize the transfer of property from one contract to another without specific identification of the type, quantity and acquisition cost of the property that is authorized for transfer to the gaining contract.

SUBPART 5245.4--CONTRACTOR USE AND RENTAL OF GOVERNMENT PROPERTY

5245.403 (DFARS 245.403) Rental--Use and Charges clause.

(a) The CCO is the agency head's designee for making the required determination.

5245.407 (DFARS 245.407) Non-Government use of plant equipment.

(a)(ii) HCAs are delegated approval authority. As noted at DFARS 245.407(a)(ii), any redelegation requires the approval of the Office of the Deputy Under Secretary of Defense (Industrial Affairs and Installations).

SUBPART 5245.5--MANAGEMENT OF GOVERNMENT PROPERTY IN THE POSSESSION OF CONTRACTORS

5245.505 Records and reports of Government property.

5245.505-14 (DFARS 245.505-14) Reports of Government property.

(90) Property Administrators shall forward all DD Forms 1662 reporting Government property to the Office of the Assistant Secretary of the Navy (Research, Development and Acquisition) DASN(ACQ), 1000 Navy Pentagon, Washington, DC 20350-1000, not later than 15 November each year for input into the DoD Contract Property Management System. Block 20 of the DD 1662 shall be fully and legibly completed.

(91) The DD Forms 1662, Line 17, column e, "Balance End of Period" should reflect the acquisition cost of all GFM in the warehouse and in production on 30 September of the reporting year.

5245.508 Physical inventories.

5245.508-1 Inventories upon termination or completion.

(a) General. Under DoN contracts, the property administrator may not waive the requirement for a physical inventory upon contract completion except to the extent provided in subparagraph (b) below. At least 60 days prior to contract completion (i.e., the date when all items are scheduled for delivery to the government), the contractor should submit the following to the property administrator:

(i) A listing of all government property required to support contractual follow-on requirements or other known requirements, including spares and mobilization readiness requirements. This listing shall identify the category, quantity, and acquisition cost of such property, i.e., IPE, OPE, ST, STE, military property, and material.

(ii) Justification for retention of any Government property not currently in use (see FAR 45.102).

(iii) Upon receipt of the required contract submission, the property administrator shall:

(A) Review and verify the contractor's stated government property requirements with the assistance, as required, from other technical specialists.

(B) Forward a copy of the contractor's follow-on or other related contract requirements list and retention justification statement, together with appropriate findings and recommendation, to the cognizant contracting officer.

(b) Exception. When it is anticipated that government property will be required for use on follow-on or other related contracts under major ongoing DoN programs, the property administrator may authorize the contractor to use a recent physical inventory, i.e., one conducted within the previous 12 months, or a sampling-type inventory to meet the physical inventory requirement provided that:

(i) The contractor has conducted previous physical inventories in accordance with the type and frequency approved by the property administrator;

(ii) The contractor's inventory plan provides for use of valid sampling techniques;

(iii) Experience has established the adequacy of the contractor's property inventory and accounting controls; and

(iv) The degree of discrepancies disclosed during previous physical inventories does not exceed the risk the government is willing to accept, e.g., 10 percent (or a 90 percent confidence level).

(90) Final decisions with respect to transfer of government property to follow-on or other contracts should be made by the cognizant contracting officer within 90 days after the receipt of the contractor's list and justification statement. If transfer approval or other disposition instructions are not received by the property administrator at the end of 90 days, the property administrator should issue follow-up correspondence that states, "Your failure to respond within 30 days of the date of this follow-on inquiry will be interpreted to mean the government property in question should be disposed of in accordance with FAR/DFARS/NMCARS 45.603/245.603."

(91) The automatic transfer by the contractor of record balances of government property to follow-on or other related contracts in lieu of preparing an inventory list upon contract completion is prohibited.

SUBPART 5245.6--REPORTING, REDISTRIBUTION, AND DISPOSAL OF CONTRACTOR INVENTORY

5245.608 Screening of contractor inventory.

5245.608-5 (DFARS 245.608-5) Special items screening.

(a) Special test equipment with standard components. Notwithstanding the provision of FAR 45.608-5(a), the final approval for contractor retention of standard components of special test equipment (STE) or for the transfer of industrial plant equipment items that are components of STE, shall be made by the contracting officer in lieu of the ACO.

5245.612 Removal and storage.

5245.612-3 (DFARS 245.612-3) Special storage at the Government's expense.

(a) Prior to authorizing retention of items in storage the contracting officer should ensure that a retention plan has been developed. Retention plans shall include the justification for storage, a detailed description of the property to be stored, storage costs, location, planned period of storage, and source of funds for storage.

(b)The use of "no-costs" or no direct cost storage agreements is prohibited.

Previous PageTop Of PageTable Of ContentsNext Page