Attachment E - MDA Manual 5000.64-M (June 2020) - Accountability and Management of MDA Equipment and Other Accountable Property.pdf

MISSILE DEFENSE AGENCY

ACCOUNTABILITY AND MANAGEMENT OF MDA

EQUIPMENT AND OTHER ACCOUNTABLE PROPERTY

MDA MANUAL 5000.64-M

June 25, 2020

Office of Primary Responsibility: Mission Support Directorate (MS)

TABLE OF CONTENTS

PURPOSE

APPLICABILITY

POLICY

RESPONSIBILITIES

PROCEDURES

Property Accountability Defense Property Accountability System (DPAS) Management Source Documentation Capital Asset Management Non-Capital Asset Management Found on Installation Government Property in the Possession of a Contractor Utilization/Reutilization Acquisition Receiving Movement/Storage Physical Inventory Maintenance Issue Turn-in Transfer/Loan Disposition Property Loss Property Accountability Methods for Assets not Easily Accessible

EFFECTIVE DATE

ENCLOSURE 1, REFERENCES

ENCLOSURE 2, GLOSSARY

PART I. ACRONYMS

PART II. DEFINITIONS

DEPARTMENT OF DEFENSE

MISSILE DEFENSE AGENCY

5700 18th STREET

FORT BELVOIR, VIRGINIA 22060-5573

MS 5000.64-M

SUBJECT: Accountability and Management of MDA Equipment and Other Accountable Property

References: See Enclosure 1.

1. PURPOSE.

a. This manual supersedes Missile Defense Agency (MDA) Manual 4161.01-M, “Property Accountability and Reporting,” dated September 15, 2016 [Reference (a)].

b. This manual implements policy established in MDA Instruction 5000.64-INS, “Accountability and Management of MDA Equipment and Other Accountable Property,” [Reference (b)] and provides uniform guidance and procedures for implementing the MDA property program.

2. APPLICABILITY. This manual applies to all MDA organizations and all MDA accountable property (regardless of location, status, or category). This manual does not apply to real property for which accountability and inventory control requirements are prescribed in MDA Directive 4165.01, “Real Property Acquisition, Sustainment, Restoration, Modernization, and Accountability,” [Reference (c)].

3. POLICY. See MDA Instruction 5000.64-INS [Reference (b)] for MDA Policy. It is MDA policy that all MDA organizations will comply with the requirements of DoD and MDA property accountability issuances.

4. RESPONSIBILITIES. See MDA Instruction 5000.64-INS [Reference (b)] for MDA Responsibilities.

5. PROCEDURES.

a. Property Accountability

(1) Accountability is established and maintained for all property purchased, leased, developed, currently in development, or otherwise acquired by MDA throughout the asset’s entire lifecycle, from receipt to disposal.

MDA 5000.64-M, June 2020

(2) Accountable property records are established and maintained pursuant to DoD Instruction 5000.64, “Accountability and Management of DoD Equipment and Other Accountable Property,” [Reference (d)]. MDA accountable property is recorded in the Agency’s Accountable Property System of Record (APSR). MDA’s APSR is the Defense Property Accountability System (DPAS).

(3) Each MDA organization that owns property will establish a standard operating procedure (SOP) to document property accountability internal controls and processes consistent with the policies contained in References (d) and this manual.

(a) MDA organizational SOPs must be reviewed, updated, and approved annually from the date of the last approved SOP on file. If there are no changes to internal organizational procedures in the SOP, the Accountable Property Officer (APO) must annotate the signature page with the statement “No Changes Required,” the date reviewed by the APO, and the APO’s signature attesting to the annual review. The SOP is required to be staffed within their organization, approved by their Program Director (PD), and dated with the current date. The Ballistic Missile Defense System (BMDS) Life-Cycle Management (MSL) Central Property Office (CPO) will provide guidance and assistance to APOs for developing and updating organization SOPs.

(b) APOs must brief their respective Program Executive (PE)/PD at least twice per year regarding the status of property accountability within their programs. APOs must ensure this requirement is included in their annual property accountability and management SOP. APOs will provide copies of their briefing to the CPO leadership.

(c) The APO will maintain a current, signed, and approved SOP on file and provide a signed copy to CPO.

(4) When used in this manual, the term APO refers to the organizational APO, unless otherwise stated. The Component Property Lead (CPL) will ensure a primary APO is strategically placed and appointed as needed within the Agency. The CPL, in coordination with the primary APO, determines where additional APOs are required within the Agency.

Agency Program Directors/Executives nominate and appoint Government employees to serve as the APO in areas designated by the CPL and primary APO. PD/PEs will appoint the APO in writing. APOs will retain the original, signed appointment letter and provide a signed copy to the CPO. A sample appointment memorandum is available on the CPO portal page.

(a) APOs will designate custodial areas within their assigned accountable area and appoint property custodians (PCs), in writing, for each custodial area. The APO will appoint as many PCs to a Unit Identification Code (UIC), as necessary, to effectively manage organization property. PCs will retain the original signed appointment memorandum and the APO will provide a signed copy to CPO. A sample appointment memorandum is available on the CPO portal page.

(b) Accountable property within a custodial area is delegated to a PC via a DPAS-generated Custodian Inventory Report (CIR).

(c) The organization’s SOP will document internal processes for designating custodial areas in an assigned accountable area and PC responsibilities.

(5) APOs and PCs will monitor, manage, and maintain lifecycle transactions of all property in their assigned accountable area or under their administrative control in accordance with (IAW) Reference (d) and this manual.

(a) Examples of lifecycle transactions include but are not limited to:

1. Acquisition.

2. Receipt.

3. Storage.

4. Issue.

5. Transfer.

6. Loan.

7. Inventory.

8. Disposition.

(6) Accountable property records are established in DPAS for all property, purchased or otherwise, obtained by the Government IAW Reference (d).

(7) Organizational program managers, in coordination with APOs, will determine if accountable records should be established in DPAS for property of any value that is controlled or managed at the item level not already covered by Reference (d).

(8) Accountable records will be established, modified, or removed from DPAS within 7 calendar days of any lifecycle transaction to include receipt, issue, transfer, loan, inventory, movement, destruction, and disposition. APOs must routinely coordinate with organizational stakeholders to maintain awareness of actions requiring changes to existing DPAS records and additions of new records within DPAS. Due to these occurrences, APOs are provided a 7 calendar day grace period from the date of the source document to account for this requirement. Capital asset lifecycle transactions must be recorded in the accounting period the transaction occurs regardless of regulatory timelines to ensure accuracy of the Agency’s General Ledger. The table below provides an explanation regarding which type of notifications are granted this extension.

Table. Lifecycle Transaction Processing Period.

Action Requiring DPAS Updates 7 Calendar Day Grace Period

Regulatory 7 Calendar Day Period

Receipt [Procurement Integrated Enterprise Environment (WAWF)] Yes Yes

Certificates of Destruction Yes Yes Military Interdepartmental Purchase Requests (MIPRs) Yes Yes

DD Form 250 Yes Yes Upgrades Yes Yes Disposals No Yes Transfers No Yes Plant Clearance Automated Reutilization Screening System (PCARSS) Closed Cases Yes Yes

(9) Source documentation will be uploaded to DPAS at the time an accountable record is added, modified, or removed.

(10) Capital asset lifecycle transactions must be recorded in the accounting period the transaction occurs to ensure accuracy of the Agency’s General Ledger.

(a) In order to ensure capital assets are brought to record within the appropriate accounting period, CPO will generate a report on the first business day of the third month of each quarter showing all locally created due-ins.

(b) CPO leadership will review the report with all APOs during the third month of each quarter’s Property Accountability / Item Unique Identification (IUID) Working Group to ensure awareness and enhance their monitoring of potential conflicts or issues regarding prescribed time limitations (within 7 days and/or the end of each quarter).

(c) In the third month of each quarter, CPO will generate the due-in report weekly and provide this information to program APOs. Program APOs will use the CPO-provided due-in report to ensure accountable records are established in a timely manner IAW Reference (b), or no later than the end of each quarter, whichever date comes first.

(11) A 7 calendar day extension may be granted to APOs under extenuating circumstances.

The requesting APO must submit a written extension request [e.g., e-mail, memorandum for record (MFR)] to the Component Property Lead (CPL) detailing the extenuating circumstances that necessitate the additional time required to bring the transaction to record. APOs will attach the approved request to the asset record in DPAS. APOs with approved extensions extending receipt into DPAS past a quarter end, must provide receipt documentation to DOF and the Accounting Directorate for inclusion onto quarter-end financial statements.

(12) If an asset requires cataloging before recording in DPAS, the APO will provide all source documentation that contains catalog data elements (pertaining to the asset) to CPO. CPO will build the catalog data file within 7 calendar days. The time required to create catalog data will not count as part of the APO’s timeline for DPAS entry.

(a) The minimum required valid catalog data elements are as follows:

1. Asset ID (if available).

2. Contract Number.

3. Contractor Name.

4. Item Description.

5. Serial Number.

6. Quantity.

7. Acquisition Date.

8. Acquisition Cost.

9. Location.

10. Manufacturer Name.

11. Manufacturer Part Number.

12. Model Number.

13. Unique Item Identifier (UII).

14. Fund Code.

15. Commercial and Government Entity (CAGE) Code.

(b) The APO will attach supporting documentation (e.g., memorandum, email) to the asset record in DPAS to document the cataloging period. This action delineates the time between recording the asset and cataloging the asset.

(13) Automatic identification technologies (AITs), electronic forms, and attachments are mandatory to establish and maintain property records IAW Reference (d) and this manual.

(14) APOs will not upload any Communications Security (COMSEC) material to DPAS.

Pursuant to National Security Agency / Central Security Service (NSA/CSS) Policy Manual 3-16, “Control of Communications Security (COMSEC) Material” [Reference (e)], the NSA/CSS Central Office of Record prohibits the use of “property book/asset management” databases or any similar database(s) to account for or track any COMSEC material that is accountable in the COMSEC account’s approved COMSEC Material Control System COMSEC Register. APOs must notify the MDA COMSEC Manager if they receive any COMSEC material to ensure proper property accountability procedures are followed.

(15) MDA asset identification tags are NOT a unique identifier. An asset’s unique identifier is a combination of nomenclature, part number, and serial number.

(16) Within MDA, there are times where the Agency produces, through third parties, BMD systems to be fielded to DoD services (Army, Navy, and Air Force). These systems are often delivered with spares packages. Spares packages must be transferred with their respective end item to the gaining service. If spares are retained by the fielding activity (e.g., MDA Programs), they are to be tracked separately (individual items) within the APSR. Spares are requested individually, and as such, will not be bundled together as kits, sets, or packages within the APSR.

b. Defense Property Accountability System (DPAS) Management

(1) APOs and PCs will establish and maintain accountable property records in DPAS IAW Reference (d).

(2) MDA personnel responsible for establishing and maintaining property records will complete all required DPAS training to obtain DPAS access.

(a) Once required DPAS training is complete, personnel requiring DPAS access must complete and submit a user request form, user agreement, and copies of all completed DPAS training to CPO for authorized access. The required user forms are the DD Form 2875 and DPAS User Agreement located on the DPAS support website.

(b) CPO will approve the type and level of access and forward the request to the DPAS administration office.

(c) A list of DPAS user training requirements is maintained by CPO and is provided upon request.

(3) DPAS user accounts must be accessed every 30 days to remain active.

(a) APOs must notify CPO if their account is suspended or closed due to non-use.

(b) DPAS users must notify their APO if their account is suspended or closed due to non-use. The APO will determine if continued access for a delinquent user is still warranted.

(4) APOs will perform DPAS functions including but not limited to Asset Updates, Asset Disposition, Asset Transfers, Inventory, Depreciation, Construction in Progress (CIP) Attestation, Reports and Forms, Ancillary Costs, Improvements, and Inquiries.

(5) Reconciliation is an annual process required by the CPL. The purpose of the reconciliation process is to verify all asset records have source documentation that validates

MDA’s rights and obligations to assets recorded in the APSR. APOs will annually review and reconcile DPAS records for all property in their designated accountable area.

(a) CPO will create and distribute guidance and timelines governing the reconciliation process to all APOs.

(b) CPO will manage and update property accountability metrics detailing the reconciliation progress of each organization.

(c) APOs must reconcile all assets assigned within their designated accountable area and provide results to CPO for verification.

(d) Once the APO and CPO have reviewed the reconciliation report, both parties and the CPL will sign the final copy. A copy of the reconciled report is kept on file by CPO.

(6) Discrepancies in DPAS property records are commonly discovered when conducting record reviews and reconciliations. Administrative adjustments may be required in order to adjust or correct discrepancies.

(a) APOs will perform administrative adjustments using MDA Form 113, Administrative Adjustment Report (AAR). A blank MDA Form 113 is available on the CPO portal page.

(b) MDA Form 113 is used to make adjustments to property records. All MDA Form 113s must be accompanied with key supporting documentation validating the requested property record adjustment. An MDA Form 113 is required to authorize changes to any financial assertion data fields to include:

1. Manufacturer Year.

2. Total Cost.

3. Years Service Life.

4. Acquisition Date.

5. Activation Date.

6. Asset Code / Type Asset Code.

7. Condition Code.

8. Depreciation Code.

9. Original In-Service Date.

10. Agency Defined Field 2.

(c) An MDA Form 113 is required to authorize changes to any DPAS data field affecting the identity of the asset to include:

1. Manufacturer Name.

2. Manufacturer Part Number.

3. Manufacturer Model Number.

4. Serial Number.

5. Stock Number.

6. Item Description.

7. UII

(d) MDA Form 113 is completed and digitally signed by the APO. APOs will attach supporting documentation to the MDA Form 113 and submit the complete packet to their respective CPO or CPO representative, who ensures the form is complete and accurate. If incomplete or inaccurate, the MDA Form 113 is returned to the APO.

(e) The CPO representative forwards the complete and accurate MDA Form 113 to the CPO Functional Property Lead for approval. The CPO Functional Property Lead will review, approve, and provide a response to the APO within 5 business days of receipt of the MDA Form 113.

(f) Once approved, the APO performs approved adjustments/corrections in DPAS and attaches the MDA Form 113 to the asset record. The APO must finalize the action by including MDA Form 113 comments in asset/history remarks.

(7) CPO is the office of primary responsibility for DPAS cataloging. CPO will maintain the MDA stock number catalog and build catalog data files for MDA assets IAW Reference (d).

(a) APOs must provide CPO with all required source documentation containing required data elements prior to cataloging. APOs must ensure acronyms are not used, unless they are defined, in order to enable catalog personnel to accurately capture descriptions when comparing and building new catalog data files.

(b) Assets identified as sensitive or pilferable are reported as such to CPO prior to cataloging. CPO will assign an appropriate code when cataloging.

(c) DPAS Catalog Process.

1. APOs will coordinate with the CPO for all catalog requests.

2. The CPO will determine if a National Stock Number (NSN) exists for the requested asset(s) and add the NSN when applicable.

3. If no NSN exists, CPO will develop a Management Control Number using the appropriate Federal Supply Class.

4. CPO will manage the Stock Number Catalog for currency, duplication, accuracy, and update or delete inaccurate records as required.

(8) The following DPAS reports and queries will assist property accountability personnel in managing DPAS and overall accountability of organization property. Property personnel must complete certain reports periodically as specified below.

(a) Capital Asset Report. Generated monthly to verify capital assets have been added to DPAS. The capital asset reports determine if capital assets have been activated for depreciation;

provide status of depreciation; verify updates to depreciation following improvements, upgrades, or updates of the capital asset; and determine if assets have fully depreciated.

(b) Inventory Report. Generated as needed to facilitate and document completion of an inventory. There are five types of inventory reports: Custodian, Cyclic, Location, Sensitive, and Custom. The inventory report will be generated for PCs to use during an inventory. PCs will sign the report accepting responsibility for the property. Definitions for each type of inventory report can be found within the DPAS User’s Guide.

(c) Custodian Asset Report. Generated as needed and used by PCs to verify requested updates, assignment of new property, or whether disposition actions have been completed.

(d) Custodian Report. Provides a current list of PCs; it is extracted monthly/quarterly to validate the accuracy of custodian information.

(e) Increase/Decrease Report. Generated weekly to verify assets have been added or removed from DPAS; may also be required for acquisition/disposition. APOs shall run, reconcile, and sign this report weekly.

(f) Assets on Loan Report. Generated monthly to identify property that has either been loaned or brought into MDA as loaned/leased items.

(g) Pending Transactions Report. Generated weekly to identify all assets pending transfer between UICs. The CPO and APOs will use this report to identify status of requested transactions. APOs must ensure items listed on the Pending Transactions Report are cleared within 45 days.

(h) Unique Item Identifier (UII) Asset Status Report. Generated monthly to provide detailed information on assets with assigned UII codes. It can be extracted at the UIC and PC levels. The report identifies if the accountable asset is fully IUID compliant, has a defined/virtual IUID, or if IUID status is undetermined.

(i) Non-Activated Depreciable Capital Asset Report. Provides the total number and dollar amounts of capital assets, to include improvements, not activated for depreciation in greater than 0, 15, 30, or 45 day categories. The report also includes the total number of capital assets and percentage of capital assets not activated for depreciation. Operating Material and Supplies (OM&S) should not be depreciated.

c. Source Documentation

(1) Accountable property records are established and maintained in DPAS to reflect current status, location, financial information, and asset condition. Property records serve as a comprehensive log of transactions (e.g., a transaction-based history of asset activity) suitable for audit. For the purposes of this manual, this documentation is referred to as source documentation.

(2) Source documentation is the authoritative documentation for providing an auditable trail of transactions (e.g., a transaction-based history of asset activity) for lifecycle events within the APSR and is necessary for validating rights and obligations and supporting the validation of existence and completeness.

(3) Source documentation must permit the validation of information pertaining to the asset such as acquisition cost, acquisition date, date placed in service, the asset’s identity, rights and obligations, and cost of improvements. To bring any MDA asset to record (add) or modify an existing record in DPAS, accountable source documentation must be attached to the corresponding DPAS asset record.

(a) Source documentation is attached to the corresponding asset record using the “add attachment” feature in DPAS at the time an accountable record is added, modified, or removed.

(b) When the attachment of the source documentation in its entirety is not possible [due to DPAS file size limit of 10 megabytes]; the first page (the page containing the asset’s information) and signature page of the document will be attached. A note will be placed in the Remarks section of the DPAS record to indicate where the entire file is located.

(c) Source documentation may include, but is not limited to the following:

1. DD Form 1149, “Requisition and Invoice Shipping Document.”

2. DD Form 1150, “Request for Issue or Turn-In.”

3. DD Form 1348-1A, “Issue Release/Receipt Document.”

4. DD Form 250, “Materiel Inspection and Receiving Report.”

5. Wide Are Work Flow (WAWF) receiving report.

6. Government Credit Card Invoice.

7. Bill of Lading.

(4) To modify or remove an asset in DPAS, the accountable source documentation (with signatures from both the gaining and losing organizations) that validates the lifecycle transaction (e.g., transfer, loan, destruction, disposition) being modified or removed is attached to the corresponding DPAS asset record. Modifications to DPAS asset records must be accompanied with a brief justification in the History Remarks field.

(5) The APO is the only individual authorized to validate and approve adequate accountable source documentation for their respective program/organization. APOs must ensure each DPAS asset record, in their accountable area, is supported by accountable source documentation.

(6) Organizations will document internal controls and processes for acquiring, recording, managing, and maintaining adequate source documentation in the organization’s SOP.

(7) When adequate source documentation is not available, organizations will make every attempt to locate adequate source documentation necessary to substantiate the asset’s record in

DPAS.

(a) Initial attempts to locate adequate source documentation should include research in associated databases and program files.

(b) If initial attempts fail to produce adequate source documentation, organizations must collaborate with other organization stakeholders, other DoD Agencies, Military Services, and industry partners, as appropriate.

(8) If efforts mentioned above fail to produce adequate source documentation, the APO will document any supporting documentation available to substantiate the asset’s record in DPAS and the efforts taken to locate adequate source documentation in an MFR. The MFR template is located on the CPO portal page.

(a) Paragraph 2 of the MFR identifies other supporting documentation to be used, in lieu of adequate source documentation, to substantiate the asset’s record in DPAS.

(b) Attachment 1 of the MFR, Research Results, is provided to detail the efforts taken to locate adequate source documentation including databases and program files researched, and organization stakeholders, other DoD Agencies, Military Services, and industry partners contacted during the search.

(9) The APO will complete the MFR, in its entirety, and sign attesting to the MFR’s completeness and accuracy. The APO will then submit the MFR to the organization’s PE/PD for signature.

(10) Once signed by the organization’s PE/PD, the APO will submit the MFR, with all supporting documentation attached, to the CPL for approval within 2 business days from the date signed by the PE/PD.

(11) Once signed and approved by the CPL, the organization APO will attach the MFR to the asset record in DPAS.

d. Capital Asset Management

(1) APOs are responsible for management and oversight of assigned capital assets.

Acquisition cost and date placed in service are used to determine if an asset meets the capitalization threshold.

(a) An asset is a capital asset if its acquisition cost equals or exceeds the capitalization threshold of $250,000, regardless of acquisition date or assets classified as OM&S regardless of dollar value.

(b) Capital assets include but are not limited to general equipment, plant/facility property and equipment, software, and information technology (IT) hardware configurations per DoD 7000.14-R, Volume 4, Chapter 25, “General Equipment,” [Reference (f)]. All assets classified as OM&S are considered capital assets since there is no dollar threshold for OM&S reported on the financial statements.

(2) APOs will establish and maintain source documentation, capital asset depreciation (straight line method), and transfer of capital assets (preexisting or no preexisting depreciation may be used) in DPAS and IAW DoD Instruction 5015.02, “DoD Records Management Program,” [Reference (g)]. Full supporting acquisition documentation includes:

(a) Total cost includes the original acquisition cost and all applicable costs.

(b) Where supporting documentation does not exist or the asset lacks sufficient documentation, APOs shall complete a legacy asset valuation worksheet located on the DOF portal page. If the asset is determined to be non-capital (i.e., acquisition cost below the $250,000 capitalization threshold), the APO will attach the completed worksheet to the asset’s record as source documentation substantiating establishment of the accountable record in DPAS. If the asset is determined to be capital (i.e., acquisition cost equal to or greater than $250,000), the APO will forward the completed worksheet to the Accounting Directorate to start the valuation process.

APOs must provide the Accounting Directorate with as many data elements as possible (e.g., description, acquisition date, manufacturer, part number, manufacture year, serial number, etc.).

If the APO is unable to determine whether the asset is a capital or non-capital asset, the APO shall forward the completed worksheet to the Accounting Directorate to start the valuation process.

(c) All title of ownership documentation demonstrating MDA has full rights and obligations of ownership. Examples include but are not limited to MDA contract, DD Form 250, DD Form 1150, and DD Form 1348-1A, “Issue Release/Receipt Document.”

(d) All supporting documentation reflecting changes in value, such as upgrades and improvements IAW Reference (f).

(e) All transfer/disposal documentation with signatures from the gaining and losing organizations. This documentation is used to close and archive the file folder.

(f) All supporting documentation enabling validation of date placed in service, acquisition date, and activation date.

(g) Any completed Independent Government Cost Analysis, invoices, DD Form 448-2, etc.

(h) Any other documentation the APO, CPO, or DOF deems necessary to support the capital asset over and above previously listed documents. Transfer documents are provided to the gaining Service or Agency’s Property Book Officer and Financial Management Office as part of the end of quarter financial reporting process.

(3) Capital asset depreciation is calculated and accumulated using the straight line depreciation methodology. Depreciation for assets acquired prior to fiscal year (FY) 2009 is calculated using straight line per month. For assets acquired on or after FY 2009, depreciation is calculated using straight line per day.

(4) MDA organizational APOs will immediately notify DOF of any changes to the below data elements in DPAS regarding capital assets. If necessary, DOF will perform a revalidation of the asset, which may include coordinating with the Accounting Operations Directorate and CPO for changes to total cost.

(a) Manufacturing Year.

(b) Total Cost.

(c) Year Service Life.

(d) Acquisition Cost.

(e) Activation Date.

(f) Type Asset Code.

(g) Condition Code.

(h) Depreciation Code.

(i) Depreciation Period.

(j) Original In-Service Date.

(k) Agency Defined Field 2.

(5) DOF will acknowledge, via correspondence, all administrative changes (listed in the previous paragraph) affecting capital asset records in DPAS to ensure DPAS and the General Ledger reflect accurate data.

(6) Capital improvements will be capitalized if it meets the capitalization threshold and increases the asset’s capacity, size, efficiency, useful life, or modifies the functionality. The depreciation schedule of existing capital assets is revised to include the acquisition cost of a capitalized improvement or upgrade.

(7) Transfer of capital assets previously owned may be accomplished in one of two ways:

(a) Preexisting Depreciation. Capital assets transferred to an activity that have preexisting depreciation schedules and accumulated depreciation will be capitalized at current book value plus any associated costs for transportation, installation, and other related costs necessary to put the asset in place and form in which it will be used. Supporting documentation should identify original date placed in service, original acquisition date, original activation dates, original acquisition cost, depreciation, and current book value from the losing organization or use the “mid-year” convention.

(b) No Preexisting Depreciation. Capital assets transferred to an activity that have no preexisting depreciation schedules and accumulated depreciation are capitalized at original acquisition cost, or reasonable estimate thereof when acquisition cost cannot be determined, plus any associated costs for transportation, installation, and other related costs necessary to put the asset in place and form in which it will be used.

e. Non-Capital Asset Management

(1) APOs are responsible for management and oversight of assigned non-capital assets.

(2) APOs will establish and maintain source documentation in DPAS and IAW Reference (g). Full supporting source documentation includes:

(a) All title of ownership documentation demonstrating MDA has full rights and obligations of ownership. Examples include but are not limited to MDA contract, DD Form 250, DD Form 1150, DD Form 1348-1A, and WAWF receiving reports.

(b) All supporting documentation enabling validation of date placed in service.

(c) Where supporting documentation does not exist, APOs conduct research to obtain true cost estimation IAW Reference (f). For legacy, commercial off-the-shelf assets, use the form “Legacy Asset Valuation Worksheet” for estimating the value. A sample worksheet is available on DOF’s portal page. The APO will attach the completed worksheet to the asset’s record as source documentation substantiating establishment of the accountable record in DPAS. If the APO is unable to determine whether the asset is a capital or non-capital asset, the APO shall forward the completed worksheet to the Accounting Operations Directorate to start the valuation process.

(d) Any other documentation the APO deems necessary to support the non-capital asset over and above previously listed documents.

(e) All supporting documentation enabling validation of inventory date.

f. Found on Installation (FOI)

(1) If property is discovered within an APO’s accountable area, but is not listed within DPAS, the APO will make every attempt to determine the proper ownership of the property.

(2) If ownership cannot be determined and the program has a legitimate requirement for the property, the APO will complete an inventory verification sheet and submit the completed sheet to CPO for cataloging.

(3) Once cataloging is complete, the APO will complete a source documentation MFR detailing attempts to locate ownership and any supporting documentation. Once complete, the APO will submit the MFR to CPO for approval.

(4) The APO will bring the asset to record in DPAS once they have received the signed MFR from CPO. The MFR and any supporting documentation will be attached to the asset’s record in DPAS.

(5) APOs will follow the procedures listed in paragraphs 5.d.(2)(b) and 5.e.(2)(c) respectively when determining valuation of FOI property.

g. Government Property in the Possession of a Contractor

(1) Pursuant to Reference (d), DoD components will establish and maintain property accountability records (of any value) for Government property (GP) furnished to contractors as Government furnished property (GFP). Administrative property typically does not meet the definition of GFP; however, the terms and conditions of the contract may dictate otherwise.

(a) Before establishing formal GFP records for administrative property when no previous accountable record has been established, the responsible APO must determine, in coordination with the contracting officer or legal counsel, if the property can be designated as “incidental to place of performance.” This designation is defined in Federal Acquisition Regulation (FAR) Part 45.000, “Government Property,” paragraph (b)(5) [Reference (h)] as

“when the contract requires contractor personnel to be located on a Government site or installation, and when the property used by the contractor within the location remains accountable to the Government. Items considered to be incidental to the place of performance include, for example, office space, desks, chairs, telephones, computers, and fax machines.”

(b) When administrative property can be so designated, a formal GFP record is not required. If the property does not meet “incidental to place of performance” criteria, the responsible APO must establish a formal GFP record in DPAS.

(c) Contractors are ordinarily required to furnish all property necessary to perform Government contracts.

(d) Contracting officers shall provide property to contractors only when it is clearly demonstrated:

1. To be in the Government’s best interest;

2. The overall benefit to the acquisition significantly outweighs the increased cost of administration, including ultimate property disposal;

3. Providing the property does not substantially increase the Government’s assumption of risk; and

4. Government requirements cannot otherwise be met.

(e) The contractor’s inability or unwillingness to supply its own resources is not sufficient reason for the furnishing or acquisition of property.

(2) Documentation supporting the decision to furnish GFP must meet the requirements proscribed in Defense Federal Acquisition Regulation Supplement (DFARS) Procedures, Guidance, and Information (PGI) 245.103-70, “Furnishing Government Property to Contractors,” [Reference (i)], and be included in the official contract file.

(a) The APO will verify a justification is on file prior to providing the property listing to CPO for review and forwarding to the Directorate for Acquisition Support (DAX) for action.

(b) Upon disposition of GFP, documentation supporting the completed action(s) must be provided to the responsible APO to support inactivating the accountable property record in

DPAS.

(3) Contractors have stewardship responsibility, consistent with the terms and conditions of the accountable contract, for the GP in their care.

(4) In accordance with DFARS PGI 245.103-74 [Reference (j)] contracting officers will maintain a GFP attachment of all GFP provided to a contractor in performance of a contract. In support of the Agency’s property accountability efforts, MDA will maintain a consolidated GFP attachment reconciled against the respective DPAS records prior to incorporation onto a contract.

The definition of maintain is to update or keep current; therefore, all additions and deletions (e.g., transfers, loss and plant clearance cases) from the GFP attachment will be reconciled and updated annually by contract modification, at a minimum.

(a) APOs provide a property listing including all assets designated for loan to the contractor to the CPO for review.

(b) The required Excel template for developing a GFP attachment through the PIEE GFP module can be found on the DoD Procurement Tool box website at https://dodprocurementtoolbox.com/. There are two tabs to the template: 1) serially-managed items and 2) non-serially managed items. Items with accountable records within MDA’s APSR (i.e., DPAS) will be listed on the serially-managed items tab. Items meeting the definition of material in FAR 45.101 and not in DPAS will be listed on the non-serially managed items tab of the GFP attachment template.

(c) GFP attachments will be developed by each organizational APO. Once developed, the organizational APO is responsible for submitting the GFP attachment to the CPO for analysis.

(d) Once the CPO completes its analysis of the GFP attachment, it is responsible for initiating the GFP attachment in the PIEE GFP module. The CPO will attain the initiator role within the PIEE GFP module.

(e) Once the GFP attachment is initiated in the PIEE GFP module, the DAX CPAO is then responsible for reconciling the GFP attachment data against the respective DPAS records and closed loss and PCARSS cases.

(f) Discrepancies will be provided to the organizational APO and CPO for resolution.

If no discrepancies are identified, the DAX CPAO will submit the attachment to the PCO for inclusion in the solicitation or submit a modification request to the contracting officer along with the validated GFP attachment from the PIEE GFP module. The contracting officer will ensure GFP attachments are validated by the DAX CPAO prior to incorporation into a solicitation/contract.

(g) Once the contract award or modification is executed, the DAX CPAO will approve the GFP attachment in the PIEE GFP module and provide a copy of the executed contract award or modification and approved GFP attachment to the CPO and organizational APO to support any necessary DPAS updates. The DAX CPAO will attain both the reviewer and approver roles in the PIEE GFP module.

(h) Once the GFP attachment is approved in the PIEE GFP module, the GFP attachment will automatically upload to the appropriate contract award or modification in Electronic Document Access (EDA).

(5) Upon completion of the approval process, APOs will establish and maintain a DPAS accountable record for property of any value furnished to a contractor as GFP.

(a) Each GFP asset record in DPAS will be coded with a loan code of “C.”

(b) The contractor’s CAGE code will be entered into the Location field within DPAS.

(c) The contract number/contract modification number authorizing the asset’s issue as GFP will be entered into the Loan Contract Number field in DPAS.

(d) Key supporting documentation is attached to each asset record in DPAS validating the transaction.

(e) Key supporting documentation substantiating transfer actions will include both the losing and gaining contract modifications and approved GFP attachments from the PIEE GFP module.

(6) GP transferred from the Government to the contractor as GFP is processed via contract award/contract modification, DPAS, and the GFP module in PIEE.

(7) APOs will update DPAS records each time a contract modification occurs affecting GFP assets on the last approved GFP Attachment by uploading the new contract modification, revised GFP Attachment, and justification document.

(8) Property in possession of a contractor but not on contract will retain a Loan Code of “G” and the Location Code will be the contractor’s CAGE code. Documentation to support this action will include, but is not limited to, a movement document (e.g., DD Form 1149) and a contract’s letter authorizing the movement to the contractor’s location. Once contract/contract modifications are signed and approved (SF 30, “Amendment of Solicitation/Modification of Contract”) the Loan Code will be changed from “G” to “C” accordingly.

(9) Procedures and processes transferring GFP from contract to contract (same contractor) or contract to contract (different contractors) are established in MDA Manual 5013.86-M, “Contract Property Management,” [Reference (k)].

(a) APOs will adhere to the guidance within Reference (k) when managing/accounting for the transfer of GFP, the delivery of contractor acquired property (CAP) to the Government, as well as GFP loss, disposal, disposition, and contract close-out procedures and processes.

(b) The transfer of CAP is prohibited IAW DFARS PGI 245.402-71, “Delivery of Contractor Acquired Property,” [Reference (l)]. All CAP must be delivered and accepted by the Government in order to obtain accountable source documentation. Once CAP is delivered/ accepted by the Government, it can then be provided to a contractor as GFP at contract award or via contract modification.

h. Utilization/Reutilization

(1) Utilization is documenting asset use compared to planned use. Effective utilization demonstrates prudent stewardship of assets for which the organization is accountable. The objective of effective utilization is to maximize asset use throughout its useful life and make assets available for reutilization, in a timely manner, should assets become idle.

(2) APOs will conduct periodic asset reviews to determine if an asset is being used for the purpose it was acquired.

(a) In order for an APO to conduct an effective periodic review, APOs establish, support, and maintain effective utilization by actively participating in management and organizational processes that establish and adjust asset requirements.

(b) In conjunction with organizational counterparts, APOs should regularly coordinate material requirements planning, business case analyses, equipment readiness, production scheduling, and any other areas that warrant attention to use, planning, performance, production, development, or management of assets.

(c) Effective utilization ensures assets are utilized for the purpose acquired and determines whether an asset is in-use, idle or standby, or excess.

(d) Discovery of excess assets is common when conducting periodic reviews. As such, APOs should identify excess items and coordinate with CPO for reutilization by other MDA organizations with a known requirement.

(3) APOs will report inconsistencies resulting from periodic reviews to their organizational management. The report will include any financial, mission, risk, or associated impacts resulting from the review.

(4) APOs will establish and incorporate internal controls and procedures for utilization and reutilization of property in the SOP.

i. Acquisition

(1) Acquisition, the acquiring of property or services with appropriated funds through purchase, construction, or lease, begins when requirements are defined.

(a) Prior to initiating an MDA acquisition with property, regardless of the acquisition vehicle utilized [e.g., Military Interdepartmental Purchase Request (MIPR), purchase order, Government purchase card (GPC), or MDA contract], a thorough review of on-hand property will be conducted within the organization by the APO. This process is referred to as internal screening.

(b) Internal screening is an effective method of reutilization that identifies excess, idle, or no longer required assets in one organization and manages the asset transfer to other organizations with a known requirement.

(c) APOs will assess property to be acquired for accountability requirements and establish due-in records in DPAS for anticipated accountable property.

(d) Accumulated costs for capital assets on contract, or on an outgoing MIPR, for production or acquisition and delivery to MDA will be recorded in the CIP module within Defense Agencies Initiative (DAI). CIP will accumulate within the general ledger and the APO will retain due-ins for the respective deliverables. APOs will verify within their program office the status of due-ins monthly.

(e) CIP accounts established prior to DAI implementation require attestation quarterly and annually and are coordinated with the Accounting Directorate and CPO.

(2) The organization that funds acquisition of a property item will assume ownership and accountability upon receipt regardless of acquisition vehicle used.

(3) Regardless of the acquisition vehicle used to acquire property (e.g., MIPR, purchase order, GPC), the MDA Requirement Owner/Program Manager will provide the APO accountable source documentation [e.g., invoices, outgoing MIPR documents (DD Form 448-2), bill of materials, statement of work, receiving reports (e.g., signed DD Form 1149, signed DD Form 1150, signed DA 3161), bill of lading, purchase orders] that verifies existence and completeness, valuation, and rights and obligations of acquired assets.

(4) All support agreements (e.g., DD Form 1144s, Treasury Form 7600A/Bs, interagency agreements, Interservice Support Agreements and associated memorandums of agreement and understanding) that provide procurement of MDA property or loan of MDA property for performance must include the mandatory MDA property clause located on the MDA Support Agreement Management portal page.

(5) Product Service Codes (PSCs) must be included in all contracts, MIPRs, and support agreements when property is purchased, manufactured, and subsequently delivered to MDA as required by DoD Memorandum, “Traceability of Contract Execution Expenditures For Services” [Reference (m)]. PSCs are four digit codes used to trace expenditures and ensure proper accounting classification. PSCs are found in U.S. General Services Administration’s “Product and Service Codes Manual,” [Reference (n)].

(6) MDA organizations must ensure technical information/requirements concerning the accountability and management of MDA equipment and other accountable property are included in the Contract Requirements Package and include APOs as participants in the organization’s acquisition team activities. The APO’s role in the organization’s acquisition team activities is ensuring property accountability and management requirements are articulated in the Statement of Work, the GFP attachment is complete, other related Government property information is provided with the contracts requirements package, and FAR/DFARS clauses and special provisions and Contracts Data Requirements Lists (CDRLs), in addition to those that are mandatory, are included and address property accountability and management requirements accordingly.

j. Receiving

(1) Receiving is the process of accepting equipment or materials into an organization and establishes the point that begins an organization’s obligation, liability, and accountability. Proof of receipt, establishment of a record, and property identification are essential, regardless of how items are received.

(2) When incoming property is due to be received into an organization, APOs will coordinate with responsible personnel in their organization that support procurement, requisitioning, and incoming transfers of property. All incoming assets must meet MDA accountability requirements to be recorded in DPAS with supporting documentation.

(a) The requisitioning authority will provide the APO and receiving function (the individual, organization, group, or entity receiving the asset) a copy of the receiving/transfer document.

(b) When incoming property meets accountability requirements established in DoD Instruction 5000.64 [Reference (d)], the APO establishes a due-in record in DPAS.

(c) If no catalog data exists in DPAS, the APO will provide all required source documentation to CPO and follow the procedures listed in paragraph 5.a.12. of this manual.

(3) The receiving process establishes custody and accountability through source documentation (e.g., receiving reports, freight bills, bills of lading, packing list, government shipping documents, reports of loss or damage, and delivery registers or logs). Within MDA, the receiving process consists of four primary steps.

(a) When property arrives, the receiver compares the shipping documentation to the due-in record, and the received property itself, to verify accuracy of delivery. Shipping documentation verifies delivery of assets only and does not validate ownership of the assets.

(b) The receiver will document damage, quantity variations, missing items, and report findings to the requisition authority and corresponding APO. When property is delivered to MDA, the receiving organization/representative ensures property is properly and uniquely identified and marked as appropriate per DoD Instruction 8320.04, “Item Unique Identification (IUID) Standards for Tangible Personal Property,” [Reference (o)] and MDA Instruction 4161.02- INS, “Item Unique Identification,” [Reference (p)].

(c) The APO will use and retain all shipping and receiving documentation, discrepancy reports, and due-in records to establish receipt of the asset(s).

(d) Once all documentation is received, APOs will create an accountable asset record in DPAS, bringing the asset to record. APOs will ensure the Local Receipt Date field in DPAS matches the date of Government acceptance on the source document. APOs must ensure all required data elements are accurate and complete, and UII marking is affixed to the property as designated by the requirements of the contract.

(4) APOs must conduct an initial inventory, utilizing a DPAS inventory report, if the asset is brought to record via WAWF receiving report or DD Form 250.

(a) If the asset is geographically located with the APO, the APO has 30 days to conduct a physical inventory using the DPAS generated inventory report.

(b) If the…