a discussion of property in the possession of contractors l.
Download
Skip this Video
Loading SlideShow in 5 Seconds..
A Discussion of Property in the Possession of Contractors PowerPoint Presentation
Download Presentation
A Discussion of Property in the Possession of Contractors

Loading in 2 Seconds...

play fullscreen
1 / 11

A Discussion of Property in the Possession of Contractors - PowerPoint PPT Presentation


  • 213 Views
  • Uploaded on

A Discussion of Property in the Possession of Contractors. Tom Ruckdaschel OUSD (AT&L)/ARA Property and Equipment Policy 703-604-6350 x147 . Four Cohorts. Government Furnished Property Equipment (ST/STE) Material Contractor Acquired Property

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about 'A Discussion of Property in the Possession of Contractors' - niel


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
a discussion of property in the possession of contractors

A Discussion of Property in the Possession of Contractors

Tom Ruckdaschel

OUSD (AT&L)/ARA Property and Equipment Policy

703-604-6350 x147

four cohorts
Four Cohorts
  • Government Furnished Property
    • Equipment (ST/STE)
    • Material
  • Contractor Acquired Property
    • Acquired by contractors under cost-reimbursement contracts
  • Real Property
    • Mostly GOCOs
    • Some legacy RP still out there
  • Progress Payment Inventory
    • Acquired by contractors under certain fixed price contracts (FAR 52.232-16)
contractor responsibility for gfp cap and real property
Contractor Responsibility for GFP, CAP, and Real Property
  • Contractors required to “establish a system to manage (control, use, preserve, protect, repair and maintain) Government property in its possession.” (Federal Acquisition Regulations, 52.245-1, Government Property Clause)
  • Oversight/surveillance/audit of that system is conducted by the agency responsible for contract administration, e.g., DCMA
  • Contractors have stewardship responsibility for Government Property in their possession

Stewardship responsibility: “The requirement placed on an individual or

organization—acting as the custodian of another’s property—by

controlling, supervising andmanaging the property in their care.”

government furnished property
Government Furnished Property
  • Government Furnished Equipment
    • Essentially a change of location
    • Only the custody has changed; should already be on the Government’s books (accountable property system)
    • Can also be equipment acquired under one contract and provided (transferred) to support work on a subsequent contract
  • Property Accountability/Financial Accounting
    • Agency is still accountable regardless of custody
  • Government Furnished Material
    • Destined for consumption (to mfr. end-items, used in repairs, or in R & D); no expectation of return
    • Values are included in the cost of the end-item
contractor acquired property
Contractor Acquired Property
  • Involves only cost-reimbursement contracts
  • Contractor acquires/Government takes title upon
    • Issuance of the property for use in contract performance;
    • Commencement of processing of the property for use in contract performance; or
    • Reimbursement of the cost of the property by the Government, whichever occurs first
  • Receipt and acceptance has not taken place (may never take place)
contractor acquired property cont
Contractor Acquired Property (cont.)
  • Values reflected in the cost of the end item to be delivered under the contract
  • Not recorded in accountable property systems, unless subsequently delivered
    • Shipped to the Government
    • Transferred to another contract (thereby becoming GFP)
accounting treatment contractor acquired property
Accounting Treatment: Contractor Acquired Property
  • Costs of contractor acquired property are accumulated in the “Other Assets”* account (advances and prepayments) for posting to General PP&E account when construction or manufacturing of the end item to be delivered is completed
  • For General and Military equipment, the acquisition value is transferred to the applicable PP&E account on the date the contract end-item is placed in service—and is then recorded in accountable property system of record

*Exceptfor shipbuilding

when applicable

real property
Real Property
  • Contractors maintain RP information in DoD accountability systems; comply with Services regulations and policies
  • This includes transferring the cost of construction to the appropriate asset account and property record once placed in service
progress payment inventory
Progress Payment Inventory
  • Contractors are required to “maintain an accounting system and controls adequate for the proper administration...” (of the progress payment clause)
  • Not recorded in accountable property systems; oversight & surveillance/audit of the contractor’s system is conducted by the Defense Contract Audit Agency
  • Costs of Progress Payment Inventory are accumulated in the “Other Assets” account;
  • For General and Military equipment, “Other Assets” – amounts are liquidated to applicable PP&E account on the date asset is placed in service—end item delivered is recorded in accountable property system of record
references
References
  • DoD Instruction 5000.64 (Nov. 2, 2006)
  • DoD FMR, Volume 4, Chapter 6
  • DoD Contractor Acquired Property Business Rule (December 22, 2007)
  • Federal Acquisition Regulations, Part 45 and its associated clauses
  • DFARS 252.211-7007- “Reporting Item Unique Identification of Government-furnished Equipment”
  • www.acq.osd.mil/me