ESP_Appendix_B.doc

DEPARTMENT OF THE AIR FORCE

AIR FORCE MATERIEL COMMAND (AFMC)

OKLAHOMA CITY AIR LOGISTICS CENTER (OC-ALC)

Tinker Air Force Base

APPENDIX B (GOVERNMENT FURNISHED PROPERTY [GFP])

CONTRACT #: FA8107- DATE: 13 June 2008 CONTRACT TYPE: Engineering Services

CONTENTS

PREPARED BY: N. Denise Nash, 540 Aircraft Sustainment Squadron (ACSS)/GFLAA, 405-736-5210

1. PURPOSE: This Appendix "B" is part of the contract and provides detailed instructions pertaining to the management and control of Government owned property. Instructions are also provided on how the property is to be obtained, accounted for, maintained, protected, controlled, returned or disposed. These instructions expound the general guidance given in Federal Acquisition Regulation (FAR) Part 45.3 and Defense Federal Acquisition Regulations (DFARS) 245.5, which is incorporated by contract reference.

2. APPLICABILITY OF INSTRUCTIONS: The information provided in this Appendix is for use by Boeing Integrated Defense Systems; Wichita, Kansas (KS) required by the terms of the contract pursuant to the government property clause as referenced in the contract. These procedures are applicable to in-house control of GFP or to the movement of GFP within or between contractors.

3. TERMS AND ASSCIATED REQUIREMENTS:

3.1 Administrative Contracting Officer (ACO) - A contracting officer assigned the responsibility for the post-award functions related to the administration of a government contract in the field. The ACO is located in the Defense Contract Management Area Office (DCMAO). The ACO is responsible to ensure the Contractor performs in accordance with (IAW) the contract.

3.2 Contractor Acquired Property (CAP) - Property procured or otherwise provided by the contractor per the terms of the contract and purchased by individual Engineering Assignments (EAs), title to which is vested in the Government. (FAR 45.101 and 45.103).

3.3 Contractor Furnished Property (CFP) - Property other than GFP and CAP, furnished by the Contractor IAW the terms of the contract, title which remains with the Contractor.

3.4 Classified Material - Material or item which is governed by special regulations and procedures related to storage safeguards, proper protection during shipment, conducting inventory, and shipment, specifically to foreign countries or contractors. Material is identified by a security classification code and determined by Department of Defense (DOD) 5220.22-M and DOD 5220.52-M, Supplement 1.

3.5 Engineering Assignment (EA) – A task added to the Contract through a modification or delivery order requiring specific efforts and activities to be performed by the Contractor to accomplish the requirements stated in the tasking. Some EAs may require the use of GFP in the Contractor’s possession.

3.6 Government-Furnished Property (GFP): All property acquired using government funds and subsequently delivered or otherwise made available to the Contractor. This includes agency peculiar, special tooling; special test equipment; military property; plant equipment, and facilities. For the purpose of annually reporting dollar values on DOD property in the custody of contractors (DD Form 1662, DOD Property in the Custody of Contractors), items must be categorized according to the specific FAR and DFARS property definitions. (FAR Part 45, FAR 45.101, FAR 45.106, FAR 45.3, FAR 45.5, and DFARS 252.245-7001)

3.7 Hazardous Material - Property, whether personal or GFP, including scrap and waste, which is ignitable, corrosive, reactive, or toxic because of its quantity, concentration, physical, chemical, or infectious characteristics. The property can be in a solid, liquid, semi-liquid, or contained gas form and may cause or significantly contribute to an increase in mortality or serious illness; pose a substantial threat or potential hazard to human health or the environment when improperly treated, stored, transported, disposed or otherwise managed. (FAR 23.3)

3.8 Hazardous Waste - Used or unused hazardous material with no known continued use and requires disposal. This includes hazardous material not otherwise disposed through plant clearance when the Contractor has been authorized by the Plant Clearance Officer for disposal of a hazardous waste.

3.9 Julian Date - A method used by the Government to track days according to a system covering one year and referring to the days of the year as a numerical sequence of the calendar year. Example: Julian Date 6133. Number 6 refers to the year 2006, and 133 refers to the one hundred thirty-third day of the year, the thirteenth day of May, (May 13, 2006).

3.10 Plant Clearance Officer (PLCO) - An individual authorized to act on behalf of the ACO on all plant clearance matters concerning the screening, reutilization, redistribution, and marketing of excess Government property used by the Contractor.

3.11 Procurement Contracting Officer (PCO) - A person with the authority to enter, obligate, and execute Government contracts.

3.12 Property Administrator (PA) - An individual authorized to act on behalf of the ACO on all matters concerning the management of Government owned property.

3.13 Property Control Procedures - A detailed written description of the Contractor's operation and procedures for the control, use, and care of GFP in the Contractor's possession. Contractors are responsible and liable for GFP in their possession, unless otherwise provided by the contract. (FAR 45.5, FAR 45.103, and FAR 45.104).

3.14 Property Records - Records reflecting the status of Government Property and construed to include documents. Contractor records of Government property established and maintained under the terms of the contract are official Government property records, unless otherwise provided by the contract. (FAR 45.105, and FAR 45.505).

3.15 Sensitive Property - Property for which the theft, loss, or misplacement could be potentially dangerous to public safety or community security, and which is subject to exceptional physical security, control, and accountability. Sensitive property is designated as "sensitive" in the Contractor's Property Control Procedures. Sensitive property includes weapons, ammunitions, explosives, narcotics and dangerous drugs, and classified material.

3.16 Service Contract - A performance based contract directly engaging the time and effort of a Contractor whose primary purpose is to perform an identifiable task rather than furnish an end item of supply. A Service Contract can cover services performed by either professional or nonprofessional personnel whether on an individual or organizational basis. (FAR Part 37)

3.17 Special Tooling (ST) - All jigs, dies, fixtures, molds, patterns, taps, gauges, other equipment, and manufacturing aids, and replacements thereof considered as tools of a specialized nature that without substantial modification or alteration, their use is limited to the development of production of particular supplies or parts thereof, or the performance of particular services. (FAR 45.101)

3.18 Special Test Equipment (STE) - Electrical, electronic, hydraulic, pneumatic, mechanical, or other items or assemblies of equipment which are of a specialized nature that, without modification or alteration, the use of such items (if they are to be used separately) or assemblies is limited to testing in the development or production of particular supplies or parts thereof, or in the performance of particular services. The term special test equipment includes all components of assemblies of such equipment but does not include consumable property, special tooling, or special machine tools, or similar capital items.

3.19 Software Engineering Environment (SEE) – A specific set or group of equipment used to develop, code, and test software unique to the B-52 weapon system platform.

3.20 System Integration Laboratory (SIL) – An integrated laboratory of equipment used to test various software and hardware changes planned for implementation on the B-52 aircraft before the equipment is productionized or the software delivered as satisfying the requirements stated in the EA.

3.21 System Program Director (SPD) - The individual within an AFMC SPO responsible and accountable for all weapon system decisions and resources and accountable for the accomplishment of overall program execution.

3.22 System Program Office (SPO) - An integrated AFMC organization responsible for cradle-to-grave management of a weapon system.

3.23 System Support Manager (SSM) - The individual usually located at a logistics center, responsible for sustainment support of the weapon system when the SPD is located at the product center.

4. GOVERNMENT-FURNISHED PROPERTY:

4.1 Contractor procurement of GFP is limited to those quantities and items authorized in the Recurring efforts or as listed in an EA to accomplish a specific task or capability associated with the B-52 and its missions and mission planning. NOTE: The transfer or purchase of GPP by an EA shall be properly documented and added to the GFP listing as detailed in the approved Contractor Property Control Procedures and accounted for in inventories (DD Form 1662) required by the contract.

4.2 Only GFP currently in the possession of Boeing Integrated Defense Services (and inventories at the start of the contract for accountability) and equipment authorized for Contractor purchase or utilization through an EA will be provided to the Contractor. The Contractor shall add all property newly acquired through a Recurring effort or EA by purchase or transfer and approved for Contractor use in the accomplishment of a task or tasks added to the contract to the GFP List. The Contractor shall not requisition, procure, nor be provided with other materials by the Government. The Contractor shall protect all GFP in a secured facility or storage area to ensure control and accountability of all GFP in the Contractor’s possession.

4.2.1 The Contractor shall maintain the GFP Listing (Attachment 1) and inventory the property as required by the Performance Work Statement (PWS). Upon execution of the contract, the Contractor shall annotate changes to the GFP Listing (Attachment 1) and provide to the ACO or PCO with documentation on the disposition of the GFP. When a complete GFP inventory is completed as required by the PWS and disposition of GFP provided to the ACO or PCO; a contract modification will be accomplished showing all equipment residing and in the Contractor’s possession. A contract modification with an accurate listing of all GFP will be accomplished upon the yearly inventory. (FAR 45.505-14 and FAR 45.508)

4.3 For authorization of GFP on this contract, the Contractor shall comply with the GFP-related clauses in the basic contract. While the GFP is in the possession of the Contractor, it is the Contractor’s responsibility to provide routine maintenance and calibration of the GFP to ensure the GFP is returned to the Government in the same condition as when provided, less normal wear and tear. The PLCO will assist in providing return or disposition instructions for GFP no longer required in the performance of the contract.

5. CONTRACTOR PROPERTY CONTROL RECORDS:

5.1. The official property records are described in the FAR. The Contractor shall establish a property control record for each line item. The Contractor shall keep property records current at all times, and maintain audit trails from property acquisition to consumption in use or final disposition. Property accounting records, including debit and credit support documentation, are considered part of the official government contract records.

5.2. Other reports may be required in accordance with the FAR and the Contract Data Requirements List (CDRL), DD Form 1423.

6. DISPOSITION OF GOVERNMENT PROPERTY:

6.1 These instructions apply to all government owned property, or property procured with government funds and determined to be excess by during the fulfillment of this contract.

6.2 If a follow-on contract is being awarded or, is in the negotiation or solicitation stage, the Contractor shall submit a letter to the PCO requesting retention and transfer of GFP to the follow-on contract within 90 days prior to contract expiration. The Contractor must include all GFP in its possession with the condition code and dollar value in the request.

6.2.1 If the retention and transfer of GFP is approved, the Contractor shall submit a ship in place document to the PA and PCO. The Contractor shall furnish copies of transfer documents to the ACO, PCO, and PLCO.

6.2.2 If the retention and transfer of GFP is disapproved, disposition instructions will be provided to the Contractor. The Contractor shall comply with all disposal procedures within 60 days from receipt of instructions.

6.3 In the event this contract or any delivery order placed against this contract is terminated, the PCO will provide disposition instructions for all GFP.

6.4 When the contract is within 60 days of completion, the contractor shall review all property control records.

6.5 When the Contractor determines GFP is excess or no longer required in the performance of the contract tasks, the following data determines how to process the GFP for return.

6.5.1 If serviceable or unserviceable GFP managed by the Defense Logistics Agency (DLA) is excess to the needs of the contract, the Contractor shall process material for return to the Source of Supply (SOS) using the DLA Material Returns Program (MRP) as outlined in the DLA Customer Assistance Handbook and IAW DOD 4161.2-M.

6.5.2 The Contractor shall obtain disposition instructions for serviceable items not managed by DLA from the ACO or PCO. If the items are unserviceable, the Contractor shall prepare the items for condemnation or scrap as directed by the ACO or PCO.

6.5.3 The Contractor shall prepare a listing of excess local purchase (LP) or local manufacture (LM) items and submit to the ACO or PCO for disposition instructions.

6.6 The Contractor shall prepare GFP for disposal of items IAW DOD 4161.2-M and approved by the ACO or PCO.

6.7 The Contractor shall package items for shipment to the Government in the original packaging container. If the original packaging is not available, the Contractor shall package the item for shipment IAW MIL-STD-2073, paragraph 3.5.

6.8 The Contractor shall notify the ACO and PCO of any hazardous material or waste requiring disposal and ensure proper treatment and storage until instructions are received by the PLCO.

7. DISPOSITION OF CONDEMNED GOVERNMENT PROPERTY:

7.1 The Contractor shall dispose of items coded as “non-recoverable or condemn at the field level at the Contractor’s facility or IAW government approved scrap procedures.

7.2 The Contractor shall request disposition instructions for items considered as “condemn at depot or non-expendable” through the PLCO or the PCO. The Contractor shall package and prepare these items for shipment as directed by the PLCO or PCO.

7.3 The Contractor shall submit a list by letter of condemned Special Tooling or Special Test Equipment to the PLCO or PCO and request disposition instructions. The listing shall identify the condemned items by National Stock Number (NSN, Part Number (PN), noun, and quantity. The Contractor shall package and prepare the items for shipment IAW MIL-STD-2073, paragraph 3.5 or as directed by the PLCO or PCO.

8. VISITS

Surveillance and fact-finding visits will be made by the PCO and ACO or other Government representatives when deemed imperative in relation to contract property control.

9. INVENTORY AND PROPERTY MANAGEMENT:

9.1. A list of GFP in the possession of the Contractor at contract award is attached based upon the GFP inventory of contract F34901-99-C-0006. The Contractor shall conduct an initial inventory of the property IAW the PWS and FAR requirements. Contractor requests for additional GFP will be reviewed and approved by the Life Cycle Management Process (LCMP) Team and incorporated into the GFP list.

9.2 The Contractor shall manage GFP IAW the Contractor Property Control Procedures and DOD 4161.2-M.

9.3 The Contractor shall add CAP purchased by this contract the GFP List within one month of the acquisition of the CAP. If the CAP cost is over $500,000, the Contractor shall add the CAP to the GFP List and request a contract modification to include the CAP. The Contractor shall account for all GFP, including CAP and items acquired in the performance of an EA, in subsequent inventories and IAW the Contractor Property Control Procedures.

10. OTHER

10.1 The SPD or SSM reserves the right to withdraw Government property in the possession of the Contractor to supply other urgent United States Air Force (USAF) requirements. If an item so removed by the Government is required to complete the contract, the Contractor shall take action to replace the removed item as directed by the PCO and individual EAs.

10.2. The Contractor’s Property Control Procedures shall contain provisions for the maintenance of adequate records in accordance with the FAR. These records shall be available for review by DCMAO or SPO personnel at their request or during visits as noted in paragraph 8 above.

10.3. The Contractor shall not transfer GFP charged to this contract to any other contract, contractor, or activity without the advance approval of the SPO and LCMP Team through the PCO.

11 REFERENCES

11.1. FAR Part 45, Management of Government Property in the Possession of Contractors, Version per contract clauses.

11.2. FAR Part 23.3, Hazardous Material Identification and Material Safety Data, Version per contract clauses.

11.3. FAR Part 37, Service Contracting, version per contract clauses.

11.4. DFARS, Part 245, Property in the Possession of Contractors, Version per contract clauses.

11.5. DFARS, Part 252.245-7001, Reports of Government Property.

11.6. DOD 4161.2-M, DOD Manual for the Performance of Contract Property Administration, December 1991.

11.7 DLA Customer Assistance Handbook, current version at contract award.

12 ACRONYMS

12.1 ACO

Administrative Contracting Officer

12.2 AFMC

Air Force Materiel Command

12.3 ACSG

Aircraft Sustainment Group

12.4 ACSS

Aircraft Sustainment Squadron

12.5 CAP

Contractor Acquired Property

12.6 CFP

Contractor Furnished Property

12.7 CDRL

Contract Data Requirements List

12.8 DCMAO

Defense Contract Management Area Office

12.9 DFARS

Defense Federal Acquisition Regulations

12.10 DLA

Defense Logistics Agency

12.11 DOD

Department of Defense

12.12 EA

Engineering Assignment

12.13 FAR

Federal Acquisition Regulations

12.14 GFP

Government Furnished Property

12.15 IAW

In Accordance With

12.16 KS

Kansas

12.17 LCMP

Life Cycle Management Process

12.18 LM

Local Manufacture

12.19 LP

Local Purchase

12.20 MRP

Material Returns Program

12.21 NSN

National Stock Number

12.22 OC-ALC

Oklahoma City Air Logistics Center

12.23 PA

Property Administrator

12.24 PCO

Procurement Contracting Officer

12.25 PLCO

Plant Clearance Officer

12.26 PN

Part Number

12.27 PWS

Performance Work Statement

12.28 SEE

Software Engineering Environment

12.29 SIL

Software Integration Laboratory

12.30 SOS

Source of Supply

12.31 SPD

System Program Director

12.32 SPO

System Program Office

12.33 SSM

System Sustainment Manager

12.34 ST

Special Tooling

12.35 STE

Special Test Equipment

12.36 USAF

United States Air Force

APPENDIX B COORDINATION RECORD

Ed Rua

327 ACSG/LG

David Stiver

PC O

Laura Culbertson

327 ACSG/DD

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