Property Requirements-31-AUG-2023.PDF

Control of Government-Owned Property – Contractor Requirements

PD-150 (08/31/2023) Page 1 | 6

This document states the requirements with which a contractor must comply to control government-owned personal property acquired for the performance of a contract.

The requirements are set forth in the following subject areas:

Definitions

Sources of Government–owned Personal Property

Specifications of Property Acquired

Documentation of Acquisitions

Identification

Records

Physical Inventories

Disposition Of Government-owned Property

Contractor Procedures

DEFINITIONS

accountable personal property/equipment: nonexpendable personal property whose expected life is two years or longer and whose acquisition value (>$10,000 and <$500,000) warrants tracking within the Laboratory’s system; including capital (>$500,000) and sensitive personal property. (Property label

POXXXXX)

administratively controlled personal property/equipment: government-owned property acquired at $5,000 to <$10,000 are controlled and tracked within the Laboratory’s property management tracking system. (Property label- ACXXXXX) capital personal property/equipment: property with an original acquisition cost of $500,000 or more that is entered on the general ledger as a major investment or asset. (Property label POXXXXX) equipment: a tangible asset that is functionally complete for its intended purpose, durable, nonexpendable, and needed for the performance of a contract. It is not intended for sale, and does not lose its identity or become a component part of another article when put into use.

excess personal property/equipment: property no longer needed to carry out contractor use and transferred to Argonne National Laboratory (Argonne) for disposal or transfer to another contractor.

government-owned personal property: any item acquired with government funds under the terms of the contract. (Property label or “U.S. Government Property” label) high risk property (HRP) personal property/equipment: because of its potential impact on public health and safety, the environment, national security interests, or proliferation concerns, must be controlled and disposed of in other than a routine manner. (Property label and export restriction notice)

PD-150 (08/31/2023) Page 2 | 6 sensitive personal property/equipment: all items, regardless of value, which require special control and accountability due to unusual rates of loss, theft, or misuse, or due to national security or export control considerations. (Property label CSIXXXXXX)

SOURCES OF GOVERNMENT-OWNED PERSONAL PROPERTY

Government-owned personal property is acquired from the following sources:

1. Property that is transferred by Argonne from one contractor to another.

2. Property that is purchased by Argonne and delivered to the contractor.

3. Property that is purchased by the contractor.

4. Property that is fabricated by the contractor.

SPECIFICATION OF PROPERTY REQUIRED

The contractor will prepare a detailed list of government-owned personal property items, with estimated costs and recommended sources, which must be acquired for performance of the contract prior to, during, or after contract award and provide it to the Procurement Specialist immediately.

DOCUMENTATION OF ACQUISITIONS

Acquisitions of equipment by the contractor, from any source, must be recorded on the attached form, ANL-661, Government Property Acquisition Record, to provide the following information. This form must accompany all invoices for payment under the contract or purchase order.

a. ANL Property Number (will be provided by the Property Department to the Contractor, if applicable – see Section “Identification”)

b. Argonne contract number

c. source of the acquisition

d. reference number of the acquisition document, that is:

1. Argonne's shipping order number

2. transferring contractor's shipping order number

3. contractor's Purchase Order number

4. contractor's Work Order number (fabrication)

e. description of the item

f. model number, if any

g. serial number

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h. identification number or special markings

i. location of the item

j. cost of the item, including, where applicable:

1. materials cost

2. direct labor cost

3. overhead cost

4. transportation cost

DEFINITIONS AND IDENTIFICATION

The contractor must identify government-owned personal property according to the following guidelines for the stated category of property:

1. Personal Property/Equipment (cost of $5,000 or greater) including sensitive items (regardless of dollar value) acquired from any source, such as contractor's P.O., contractor's fabrication, or Argonne drop shipments.

Items in this category must use property tags provided and affixed by the contractor. These tags must clearly identify the personal property and/or equipment as accountable, administratively controlled, capital, high risk property, and/or sensitive, as U.S. government property purchased by Argonne to the contractor, or transferred from one contractor to another.

2. Non-Consumable Property

Items in these categories must be marked upon receipt by the contractor to identify them as government property (“U.S. Government Property” label). The method of marking (printing, stenciling, tagging, etching, etc.) may be chosen by the contractor as long as it effectively identifies the property throughout the life of the contract. If it is not practicable to mark an item due to its nature, the contractor must use other means to identify it as government property.

3. Consumable Property

Marking of items in this category is not required. However, physical storage and control measures must be followed to ensure that such property is used solely for performance of the contract.

4. Excess Personal Property/Equipment

Marking of items in this category is not required, but property in this category must be kept physically separated from other property until final disposition.

PD-150 (08/31/2023) Page 4 | 6

RECORD REQUIREMENTS

The contractor must establish and maintain the following records for government-owned personal property:

1. Personal property/equipment and Non-Consumable Property. The contractor must maintain the following information for each item of government property in these categories:

a. Argonne contract number

b. identification number (Argonne property tag number when applicable)

c. description

d. acquisition source

e. source document number

f. acquisition date

g. cost

h. location

i. disposition action

j. disposition date

2. Consumable Property

The contractor must maintain inventory records for consumable property in sufficient detail to account for quantity and dollar value of receipts, issues, and balances on hand.

3. Excess Personal Property/Equipment (Scrap/Salvage)

The contractor must maintain records for this property in sufficient detail to account for government-owned personal property that is damaged, destroyed, excessed, lost, stolen, and so on.

PHYSICAL INVENTORY REQUIREMENTS

The contractor must perform an annual and/or closeout inventory of all government property and submit a report using form ANL-550, Personal Property/Equipment Inventory, with the results to property@anl.gov, and a copy to the Procurement Department. The inventory must be based on the following schedule:

Personal property/equipment, including Sensitive Items – 12-month cycle

• Annual Inventory – within 30 days of notification

• Contract Close Out – physical inventory within 30 days of contract closeout

1. Report for all personal property/equipment (accountable, administratively controlled, capital, high risk, and sensitive), and Non-Consumable Property.

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The report for these categories of property will be divided into the categories above and will list individual line items with the following information on form ANL-550, Personal Property/Equipment Inventory:

a. ANL Number – when applicable, Argonne property tag number

b. generic name

c. manufacturer

d. model

e. serial number

f. acquisition cost

g. date received

h. quantity/weight

i. item used or stored in a radiologically controlled area?

j. how acquired?

A photo via email of each accountable, administratively controlled, capital, high risk, and sensitive item will be sent along with the completed ANL-550 to property@anl.gov.

2. Report for Consumable Property

The report for this category of property will briefly describe the types and quantities of items and their value.

3. Report for Excess Personal Property/Equipment

The report for these categories of property will briefly describe the materials, quantities, estimated value and justification for this classification.

DISPOSITION OF GOVERNMENT-OWNED PERSONAL PROPERTY

Upon completion of the contract the contractor must contact the Property Management department and Procurement Specialists via email for direction for the disposition of any government-owned personal property. The contractor must also notify the Property Management department and Procurement Specialists of any government-owned personal property that is lost, damaged, destroyed, or with need to be excessed as soon as possible, while the contract is open.

Some disposition pathways include:

• Return government-owned personal property back to Argonne National Laboratory

• Transfer government-owned personal property to another active contractor

• Abandon in place mailto:Property@anl.gov

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CONTRACTOR PROCEDURAL REQUIREMENTS

The contractor must establish and maintain a system for the management of government-owned personal property that states the actions that will be taken to fulfill the requirements for control of government property set forth above. The procedures will be submitted to the Procurement Specialists as part of the contract proposal, if requested. The contractor will maintain a government-owned personal property system that:

1. Maintains adequate records of all acquisitions, fabrications, physical inventories, consumed items, and disposition.

2. Maintains controls over acquisitions (documentation of cost, date acquired, source of acquisitions, etc.)

3. Identifies all items, including items identified as accountable, administratively controlled, capital, high risk, and sensitive, with a label stating “U.S. Government Property” or “Property of the U.S. Government.”

4. Perform annual and close-out physical inventories that include photos of identified government-owned personal property.

5. Provide proper care, maintenance, and protection of all government-owned personal property.

6. Establish and maintain controls over items requiring special handling (i.e., nuclear related, proliferation-sensitive, or contaminated property).

7. Provides reporting, redistribution, and disposal of excess and surplus government-owned personal property.

8. Accounts for government-owned personal property that is lost, damaged, destroyed, stolen, abandoned, or worn out.

9. Maintains periodic reports of annual and closeout inventories and total acquisition costs of government-owned personal property.

10. Establishes an internal surveillance program with periodic reviews and verification that government-owned personal property is being managed in accordance with established procedures.