Attachment_4_Procedures_for_Government_Property.pdf

Procedures for Government Property

ARCENT TSS

The term Government Property (GP) refers to any Government Furnished Property (GFP) or

Contractor Acquired Property (CAP) that will pass to the Government at the conclusion of this effort. The Contractor shall maintain a list of all GFP issued for use.

Government Furnished Property, materials and records will remain the property of the

Government and shall be returned to the Government upon request or at the end of the period of performance or as directed by the Contracting Officer. All GFP shall be used in support of the contracted function and operated in the prescribed manner intended

The Contractor shall not acquire additional GFP/CAP for use on this contract without prior written approval. Requests for additional GFP shall include justification and will be routed through the appropriate COR for review and endorsement prior to sending to the Contracting Officer for approval and contract modification.

Property Management. The Contractor shall have a system of internal controls to manage

(control, use, preserve, protect, repair and maintain) Government property in its possession. The

Contractor shall initiate and maintain the processes, systems, procedures, records, and methodologies necessary for effective and efficient control of Government property. The

Contractor shall disclose any significant changes to its Property Management System to the

COR/KO/Property Administrator prior to implementation of the changes. The Contractor may employ customary commercial practices, Voluntary Consensus Standards, or Industry-Leading

Practices and standards that provide effective and efficient Government property management that are necessary and appropriate for the performance of this contract.

The Contractor shall establish and maintain procedures necessary to assess its Property

Management System effectiveness and shall perform periodic internal reviews, surveillances, self-assessments, or audits. Significant findings or results of such reviews and audits pertaining to Government property shall be made available to the KO/Property Administrator.

Acquisition - The Contractor shall furnish a written statement to the COR/KO/Property

Administrator containing all relevant facts, such as cause or condition and a recommended course(s) of action, if overages, shortages, or damages and/or other discrepancies are discovered upon receipt of Government-Furnished Property.

Receiving - The Contractor shall receive, document the receipt and record the necessary record requirements of paragraph (f)(1)(iii)(A)(1),(2),(3), (4), (5), (6), (7), (8), (9) & (10) as specified in

FAR 52.245-1. The Contractor shall take all actions necessary to adjust for overages, shortages, damage and/or other discrepancies discovered upon receipt, in shipment of Contractor-Acquired

Property from a vendor or supplier, so as to ensure the proper items are reasonable, allowable, and allocable, with associated costs.

The Contractor shall request access to Automated Enterprise System Integration Program

(AESIP) to catalog CAP prior to delivery to Government. The Contractor shall use an automated property system for the purpose of tracking and accounting for GFP. The Contractor shall keep a database or electronic spreadsheet of all requisitioned GFP and CAP during the life of the contract.

Identification of Government Property - Government-owned property shall be identified, marked, and recorded during the Contractor’s receiving process. All GFP shall be stamped, tagged, marked and recorded using automated procedures IAW FAR 52.245-1(f) (1) (ii).

Item Unique Identification -The Contractor shall follow AR 700-145 and ensure all equipment that meet the criteria of serialized, $5,000 dollars or more items have a valid Unique Item

Identification (UII) marking. The Contractor shall register for a IUID account in order to enter, view, and edit all records within the IUID database that are associated with in accordance with http://dodprocurementtoolbox.com .

Records of Government Property - Accountability records of Government property shall be maintained using the FAR, part 52.245-1(f) (1) (iii). The Contractor shall create and maintain records of all Government property accountable to the contract, including Government-furnished and Contractor-acquired property. Property records shall enable a complete, current, auditable record of all transactions and shall, contain the following: The name, part number, description, National Stock Number, quantity received, fabricated, issued, balance-on-hand, unit acquisition cost, unique-item identifier, unit of measure, accountable contract number, location, posting reference, date of transaction and date placed in service unless otherwise approved by the

KO/Property Administrator.

Utilization of Government Property - The Contractor shall utilize, consume, move, and store

Government Property only as authorized under this contract. The Contractor shall promptly disclose and report Government property in its possession that is excess to contract performance.The Contractor shall use Government property only for its authorized purposes and will have a system to determine usage. Usage data will be recorded and provided to the appropriate COR as requested. Usage data will be used to determine if property is excess to contract and/or to justify replacement or additional GFP. (Reference FAR 52-245-1).

Consumption – The Contractor shall consume Government Material only as authorized under this contract. The Contractor shall analyze and track the consumption of material and have processes for monitoring of this action. The Contractor shall issue materials in reasonable and http://dodprocurementtoolbox.com/ proper quantities for work being performed. The Contractor shall return unused portions of materials to stock and annotate reestablishment to records. It may include the attachment or incorporation of material into a Government Property item.

Movement of Government Property - The Contractor shall control Government Furnished

Property through documentation, tracking, and location systems that facilitate changes in quantities and location. Examples of proper documentation are receiving reports, issue documents, turn-in documents, and shipping documents. The PMS shall address all movement and transfer of Government property.

Storage of Government Property - The Contractor shall provide proper protection of

Government property. This includes but is not limited to security from pilferage and protection from the elements; i.e., adequate prevention of handling damage; protection against water flow, insects and rodents or deterioration by dust, temperature, and humidity. Unless otherwise authorized by the appropriate COR, the Contractor shall not commingle Government property with property not owned by the Government IAW FAR 52.245-1(f) (1)(viii)(b). Storage of Government

Property requires establishing controls that permit ready location and identification. Special controls shall be provided for shelf life items.

Physical Inventories of Government Property - The Contractor shall perform physical inventories of GFP within 30 days of contract award. An initial inventory of GFP shall be performed jointly between the COR/USG Representative and the incoming Contractor at the beginning of the contract period. This inspection will verify the quantities, condition and availability of the equipment offered to the Contractor by the Government. Inspection results will be recorded and signed by the Contractor and the appropriate USG representative. This inventory should be completed prior to the end of the Phase In period. The process to complete this inventory should be addressed in the Transition Agreement between the incumbent and new

Contractor. The Contractor shall periodically perform, record, and disclose physical inventory results. A final physical inventory shall be performed upon contract completion or termination.

The Contractor will schedule additional inventories as needed and submit this schedule to the appropriate COR for review. The Contractor shall use a 10% monthly cyclic method of inventory for this contract. The Contractor shall designate by memorandum what line items are to be inventoried during this cycle and how the inventory will be conducted. These monthly inventory records, results of the inventory and a written report of all discrepancies and corrective actions noted during cyclic inventories shall be provided to the COR NLT 25th of each month.

Reports - The Contractor shall have a process to create and provide reports of discrepancies, loss of Government property, physical inventory results, consumption reports, audits self-assessments, corrective actions, and other property related reports as directed by the Contracting

Officer.

Maintenance - The Contractor's Maintenance Program shall enable the identification, disclosure, and performance of normal and routine preventative maintenance and repair. The

Contractor shall disclose and report to the COR/KO the need for replacement and/or capital rehabilitation. The Contractor’s maintenance program shall be structured to efficiently initiate, control, perform and document required maintenance for GFP provided under the terms of the contract. This maintenance plan will include a preventive and general maintenance plan and provide for scheduled and unscheduled services. All GFP requiring maintenance services shall be included in the GFP Maintenance Plan. New equipment shall be inducted into the plan upon receipt. The Government may require a particular maintenance procedure or system be used for the maintenance of GFP. The Contractor shall not modify, alter or cannibalize any GFP without

USG permission.

Sub-Contractor Control - The Contractor shall award subcontracts that clearly identify items to be provided and the extent of any restrictions or limitations on their use. The Contractor shall ensure appropriate flow down of contract terms and conditions (e.g., extent of liability for loss of

Government property). The Contractor shall assure its subcontracts are properly administered and reviews are periodically performed to determine the adequacy of the Subcontractor's

Property Management System.

Relief of Stewardship Responsibility and Liability (Loss) - The Contractor shall have a process to enable the prompt recognition, investigation, disclosure and reporting of loss of

Government property, including losses that occur at subcontractor or alternate site locations. The

Contractor shall investigate and provide initial report of loss, theft, damage or destruction of GFP to the appropriate COR /KO/PA within 24 hours. This includes reporting all incidents or accidents involving government property. IAW DFR 252.245-7002 the Contractor shall use the Defense

Contract Management Agency (DCMA) eTools software application for reporting loss of

Government property. Reporting value shall be at unit acquisition cost. The eTools “LTDD of

Government Property” toolset can be accessed from the DCMA home page External Web

Access Management (EWAM) application at http://www.dcma.mil/WBT/propertyloss.

Disposition of Government Property - The Contractor shall report any and all GFP that is determined to be in excess of contract requirements or may require disposal instructions from the appropriate COR/KO/PA. The Contractor shall dispose of excess GFP IAW FAR 45.6 02-1 and

DFARS 245.6 as may be appropriate. Condition codes shall be annotated as appropriate. All disposition actions and disposal records will be maintained as required by the FAR52.245-1(j).

The Contractor may use local DRMS as long as it is stated in the PWS/SOW. The Contractor shall use the Defense Contract Management Agency (DCMA) eTools software application Plant

Clearance Automated Reutilization Screening System (PCARSS) for disposition of GFP. The eTools “PCARSS toolset can be accessed from the DCMA home page External Web Access

Management (EWAM) application at http://www.dcma.mil/WBT/pcarss.

https://www.law.cornell.edu/definitions/index.php?width=840&height=800&iframe=true&def_id=f4efc9932fc6186ec887a8c9def01a28&term_occur=4&term_src=Title:48:Chapter:2:Subchapter:H:Part:252:Subpart:252.2:252.245-7002 https://www.law.cornell.edu/definitions/index.php?width=840&height=800&iframe=true&def_id=f4efc9932fc6186ec887a8c9def01a28&term_occur=4&term_src=Title:48:Chapter:2:Subchapter:H:Part:252:Subpart:252.2:252.245-7002 https://www.law.cornell.edu/definitions/index.php?width=840&height=800&iframe=true&def_id=c17e7534484ca0d2307fdd694a4de9f8&term_occur=1&term_src=Title:48:Chapter:2:Subchapter:H:Part:252:Subpart:252.2:252.245-7002

Scrap procedures – The Contractor shall ensure their scrap disposal processes, methods, and practices allow for effective, efficient, and proper disposition and are properly documented in the

Contractor’s Property Management System.

The Contractor shall have a process for disposal of Government-owned scrap on Government contracts if any of the following items are produced:

Sensitive items

Hazardous materials or wastes

Classified or otherwise controlled items

Precious or strategic metals

Characteristics or components dangerous to public health or safety

The Contractor shall physically segregate unique disposal processing or separate plant clearance reporting. The Contractor procedures shall address the following if applicable:

Unserviceable end-items beyond economical repair (meeting the DFARS 252.245-

7004(a) (2) definition of scrap)or scrap parts removed from end-items as a result of the repair, maintenance, overhaul, or modification process.

Scrap remaining from production operations, i.e., production (shavings and trimmings), engineering, research, and development.

Production scrap does not warrant physical segregation and may be commingled and disposed of with contractor owned scrap.

Other types of scrap; e.g., serviceable property downgraded to scrap, may be disposed of for its basic material content by direction of the PLCO.

Property Management Systems Analysis Evaluation (PMSA) -The Property Management

Systems Analysis (PMSA) will be used to evaluate the Contractor’s Property Management System

(PMS). The Contractor’s PMS shall provide all property records and related correspondence to the appropriate COR/KO/GPA/ for audit. The Contractor shall be prepared to present any GFP and

GFP records for inspection upon request.

Property Closeout - The Contractor shall promptly perform and report to the

COR/KO/Property Administrator, contract property closeout, to include reporting, investigating and securing closure of all loss of Government property cases; physically inventorying all property upon termination or completion of this contract; and disposing of items at the time they are determined to be excess to contractual needs.

*****NOTE: At the time of contract award the Government may determine there may be a process that is not applicable to this contract. However, if it is later determined that they are applicable, the PCO will enact this requirement.*****