Defense Federal Acquisition Regulation Supplement; Reporting of Government Property Lost, Stolen, Damaged, or Destroyed, 6006-6008 [2011-2044]
Download as PDF
6006
Federal Register / Vol. 76, No. 22 / Wednesday, February 2, 2011 / Rules and Regulations
because any start-up costs that
contractors will incur to comply with
the rule are expected to be minimal.
Moreover, the rule excludes items, as
determined by the head of the agency,
that are to be used to support a
contingency operation; or to facilitate
defense against or recovery from
nuclear, biological, chemical, or
radiological attack; or for which a
determination and findings has been
executed concluding that it is more cost
effective for the Government requiring
activity to assign, mark, and register the
unique item identification after delivery
of an item acquired from a small
business concern or a commercial item
acquired under FAR part 8 or part 12.
The rule does not duplicate, overlap,
or conflict with any other Federal rules.
DoD considers the approach described
in the rule to be the most practical and
beneficial for both Government and
industry.
V. Paperwork Reduction Act
The Paperwork Reduction Act (Pub.
L. 96–511) does not apply because the
rule does not impose additional
information collection requirements that
require the approval of the Office of
Management and Budget under 44
U.S.C. 3501, et seq.
List of Subjects in 48 CFR Parts 245 and
252
Government procurement.
Ynette R. Shelkin,
Editor, Defense Acquisition Regulations
System.
Therefore, 48 CFR parts 245 and 252
are amended as follows:
■ 1. The authority citation for 48 CFR
parts 245 and 252 continues to read as
follows:
Authority: 41 U.S.C. 421 and 48 CFR
chapter 1.
PART 245—GOVERNMENT PROPERTY
2. In section 245.102, paragraph (4) is
added to read as follows:
■
245.102
Policy.
emcdonald on DSK2BSOYB1PROD with RULES3
*
*
*
*
*
(4) Government-furnished property
identification.
(i) It is DoD policy that Governmentfurnished property be tagged, labeled, or
marked based on DoD marking
standards (MIL Standard 130) or other
standards, when the requiring activity
determines that such items are subject
to serialized item management (seriallymanaged items). The list of
Government-furnished property subject
to serialized item management will be
identified in the contract in accordance
VerDate Mar<15>2010
17:28 Feb 01, 2011
Jkt 223001
with PGI 245.201–71, GFP attachments
to solicitations and awards.
(ii) Exceptions. The Contractor will
not be required to tag, label, or mark—
(A) Government-furnished property
that was previously tagged, labeled, or
marked;
(B) Items, as determined by the head
of the agency, that are to be used to
support a contingency operation; or to
facilitate defense against or recovery
from nuclear, biological, chemical, or
radiological attack;
(C) Items for which a determination
and findings has been executed
concluding that it is more cost effective
for the Government requiring activity to
assign, mark, and register the unique
item identification after delivery of an
item acquired from a small business
concern or a commercial item acquired
under FAR part 12 or part 8.
(1) The determination and findings
shall be executed by—
(i) The Component Acquisition
Executive for an Acquisition Category
(ACAT) I program; or
(ii) The head of the contracting
activity for all other programs.
(2) A copy of the executed
determination and findings shall be
provided to the DoD Unique Item
Identification Policy Office at this
address: OUSD (AT&L) DPAP/Program
Development and Implementation,
Room 3B855, 3060 Defense Pentagon,
Washington, DC 20301–3060; or by
facsimile to 703–602–6047.
(D) Items that are contractor-acquired
property;
(E) Property under any statutory
leasing authority;
(F) Property to which the Government
has acquired a lien or title solely
because of partial, advance, progress, or
performance-based payments;
(G) Intellectual property or software;
or
(H) Real property.
245.107–70
[Redesignated as 245.107]
3. Section 245.107–70 is redesignated
as 245.107 and revised to read as
follows:
■
245.107
Contract clauses.
(a) Use the clause at 252.245–7000,
Government-Furnished Mapping,
Charting, and Geodesy Property, in
solicitations and contracts when
mapping, charting, and geodesy
property is to be furnished.
(b) Use the clause at 252.245–7001,
Tagging, Labeling, and Marking of
Government-Furnished Property, in
solicitations and contracts that contain
the clause at FAR 52.245–1,
Government Property.
PO 00000
Frm 00004
Fmt 4701
Sfmt 4700
PART 252—SOLICITATION
PROVISIONS AND CONTRACT
CLAUSES
4. In section 252.245–7000, the
introductory text is amended by
removing ‘‘245.107–70’’ and adding in
its place ‘‘245.107(a)’’.
■ 5. Add section 252.245–7001 to read
as follows:
■
252.245–7001 Tagging, Labeling, and
Marking of Government-Furnished Property
As prescribed in 245.107(b), use the
following clause:
TAGGING, LABELING, AND MARKING OF
GOVERNMENT-FURNISHED PROPERTY
(FEB 2011)
(a) Definitions. As used in this clause—
Government-furnished property is defined
in the clause at FAR 52.245–1, Government
Property.
Serially-managed item means an item
designated by DoD to be uniquely tracked,
controlled, or managed in maintenance,
repair, and/or supply systems by means of its
serial number.
(b) The Contractor shall tag, label, or mark
Government-furnished property items
identified in the contract as subject to
serialized item management (seriallymanaged items).
(c) The Contractor is not required to tag,
label, or mark Government-furnished
property previously tagged, labeled, or
marked.
(End of clause)
[FR Doc. 2011–2043 Filed 2–1–11; 8:45 am]
BILLING CODE 5001–08–P
DEPARTMENT OF DEFENSE
Defense Acquisition Regulations
System
48 CFR Parts 245 and 252
[DFARS Case 2008–D049]
RIN 0750–AG64
Defense Federal Acquisition
Regulation Supplement; Reporting of
Government Property Lost, Stolen,
Damaged, or Destroyed
Defense Acquisition
Regulations System; Department of
Defense (DoD).
ACTION: Final rule.
AGENCY:
DoD is issuing a final rule
amending the Defense Federal
Acquisition Regulation Supplement
(DFARS) to require contractors to report
loss of Government property to the
Defense Contract Management Agency
(DCMA) eTools application.
DATES: Effective Date: February 2, 2011.
FOR FURTHER INFORMATION CONTACT: Ms.
Clare Zebrowski, 703–602–0289.
SUMMARY:
E:\FR\FM\02FER3.SGM
02FER3
Federal Register / Vol. 76, No. 22 / Wednesday, February 2, 2011 / Rules and Regulations
SUPPLEMENTARY INFORMATION:
I. Background
This final rule provides a clause at
DFARS 252.245–7002, Reporting Loss of
Government Property, that requires DoD
contractors to report the loss, theft,
damage, and destruction of Government
property to the DCMA eTools
application. The final rule changes—
• DFARS 245.102(4), Policy, to make
editorial changes to remove
subparagraphs that unnecessarily
duplicate language contained in the
clause at 252.245–7002, Reporting Loss
of Government Property. This paragraph
has been redesignated as 245.102(5).
• DFARS 245.107(2), Contract
clauses, to correct the prescription for
use of the clause at 252.245–7002,
Reporting Loss of Government Property,
by removing the reference to FAR
52.245–2, Government Property
Installation Operation Services. This
paragraph has been redesignated as
245.107(c).
• Clause 252.245–7002, Reporting
Loss of Government Property, to—
Æ Revise the clause title;
Æ Change the defined term
‘‘acquisition cost’’ to ‘‘unit acquisition
cost’’ and expand the definition to
include contractor-acquired property;
Æ Revise the definition for
‘‘Government property’’ to state that the
term is defined in the clause at FAR
52.245–1, Government Property;
Æ Add a new definition for ‘‘loss of
Government property’’;
Æ Revise the paragraph (b) title and
(b)(1) to accommodate the new
definition of ‘‘Loss of Government
property’’.
Æ Revise paragraph (b)(1) to add the
word ‘‘unit’’ to reflect that reporting
value shall be at ‘‘unit acquisition cost,’’
and to provide an updated Web page for
accessing the eTools application;
• Revise paragraph (b)(3) to make
editorial and format changes;
• Revise paragraph (b)(4) to make
editorial changes and to delete reference
to two specific property clauses and
instead state that the reporting
requirements do not change any other
liability or other reporting requirement
that may exist under the contract.
emcdonald on DSK2BSOYB1PROD with RULES3
II. Discussion and Analysis
Three respondents submitted four
comments on the proposed rule, which
was published at 75 FR 22729 on April
30, 2010. Comments were due June 29,
2010. A discussion of the comments
received follows:
A. Clause Prescription
Comment: One respondent
recommended revising paragraph
VerDate Mar<15>2010
17:28 Feb 01, 2011
Jkt 223001
245.107(2) to remove the reference to
FAR 52.245–2, Government Property
Installation Operation Services, as the
loss of property reporting requirement
stems directly from FAR 52.245–1 and
not from 52.245–2.
DoD Response: DoD has revised the
language accordingly.
B. Definition of ‘‘Government Property’’
Comment: One respondent
recommended that the definition of
‘‘Government property’’ in the proposed
clause should make clear that it
includes all property acquired by the
contractor through indirect cost
accounts.
DoD Response: The recommendation
is outside the scope of the rule. The rule
does not seek to alter or modify the
definition of Government property as
prescribed in the Federal Acquisition
Regulations (FAR 52.245–1). However,
in order to clarify the Government
property definition, DoD has replaced
the definition of ‘‘Government property’’
in the clause with a reference to the
definition of ‘‘Government property’’ in
FAR 52.245–1.
C. Use of Term ‘‘Losses’’
Comment: One respondent
recommended modifying the clause
language in paragraph (b) to replace the
term ‘‘lost, stolen, damaged, or
destroyed’’ with ‘‘losses’’ to maintain
simplicity and consistency.
DoD Response: A new definition for
‘‘loss of Government property’’ has been
added to the clause at 252.245–7002,
Reporting Loss of Government Property.
D. Definition of ‘‘Estimated Harm’’/
‘‘Acquisition Cost’’
Comment: One respondent
recommended adding a new definition
of ‘‘estimated harm’’ to the proposed
clause at 252.245–70XX and stated that
estimated harm should consider other
factors such as residual value,
replacement cost, and care and handling
cost. The respondent stated that the
estimated harm should be expressed as
a numeric value, and that providing
only the acquisition cost without
providing estimated harm to the
Government is misleading and may
result in poor decisions. According to
the respondent, industry experience has
proven that there typically is minimal or
no harm to the Government and, even
though the Government is self insured,
replacement of lost items rarely occurs.
Similarly, a respondent stated the
need to address the materiality of the
loss and that without this information,
decision makers may be misled and
losses may be overstated. Further,
according to the respondent, the rule
PO 00000
Frm 00005
Fmt 4701
Sfmt 4700
6007
should then explain how to compensate
the Government for losses when the
‘‘indirect costs used to buy the property’’
have been partially allocated to
Government contracts and partially
allocated to commercial work or firmfixed-price contracts.
DoD Response: These
recommendations are outside the scope
of the rule. The clause seeks only to
require the electronic reporting of data
pertaining to Government property
losses. It does not require reporting of
the estimated harm or materiality of
such losses to the Government.
However, in order to clarify the
reporting value, the clause definition of
‘‘acquisition cost’’ has been revised to a
definition of ‘‘unit acquisition cost.’’ The
new definition clarifies that for
Government-furnished property, the
unit acquisition cost is the dollar value
assigned by the Government and
identified in the contract; and adds the
method for determining the reporting
value for contractor-acquired property.
The revised definition is more
comprehensive and clarifies the
property values to be reported.
The final rule also revises paragraph
(b)(4) of the clause to remove the
references to 52.245–1 and 52.245–2,
since the contract may contain other
liability or other reporting requirements.
This change clarifies that the new clause
does not impact any other contractual
reporting or liability requirements.
III. Executive Order 12866
This rule was not subject to Office of
Management and Budget review under
Executive Order 12866, dated
September 30, 1993. This rule is not a
major rule under 5 U.S.C. 804.
IV. Regulatory Flexibility Act
DoD has prepared a final regulatory
flexibility analysis consistent with 5
U.S.C. 604. A copy of the analysis may
be obtained from the individual
specified herein. The analysis is
summarized as follows:
The objective of this rule is to provide
DoD with a single repository for
reporting loss of Government property
to improve accountability and control of
DoD assets and contractor oversight.
None of the comments from the three
respondents was in response to the
initial regulatory flexibility analysis.
Therefore, there is no change to the rule
in this regard.
The rule applies to DoD contractors
provided with Government property.
The clause at 252.245–7002, Reporting
Loss of Government Property, requires
the contractor to use the Defense
Contract Management Agency eTools
software application for reporting loss of
E:\FR\FM\02FER3.SGM
02FER3
6008
Federal Register / Vol. 76, No. 22 / Wednesday, February 2, 2011 / Rules and Regulations
Government property. The eTools
software can be accessed from the
DCMA homepage External Web Access
Management application at https://
www.dcma.mil/aboutetools.cfm.
Unless otherwise provided for in the
contract, these requirements do not
apply to normal and reasonable
inventory adjustments, i.e., losses of
low-risk consumable material such as
common hardware, as agreed to by the
contractor and the Government property
administrator. Such losses are typically
a product of normal process variation.
The contractor shall ensure that its
property management system provides
adequate management control measures,
e.g., statistical process controls, as a
means of managing such variation.
Reporting requirements apply to
losses of Government property outside
normal process variation, e.g., because
of—
(1) Theft;
(2) Inadequate storage;
(3) Inadequate security; or
(4) ‘‘Acts of God.’’
This rule is not expected to have a
significant economic impact on a
substantial number of small entities
within the meaning of the Regulatory
Flexibility Act, 5 U.S.C. 601, et seq.,
because any start-up costs that
contractors will incur to comply with
the rule are expected to be minimal. The
rule is expected to have a positive or
beneficial impact on small entities by
making available a Governmentprovided software application to use for
reporting purposes. The rule does not
duplicate, overlap, or conflict with any
other Federal rules.
emcdonald on DSK2BSOYB1PROD with RULES3
V. Paperwork Reduction Act
This final rule does not significantly
increase the information collection
requirements set forth under FAR
52.245–1(f)(vi), approved by the Office
of Management and Budget under OMB
clearance number 9000–0075. The rule
will have a minimal impact on
contractors, as such reporting is already
common practice and is on an exception
basis, i.e., only when reportable
property is lost. There were no
comments received on the proposed
rule concerning information collection.
VerDate Mar<15>2010
17:28 Feb 01, 2011
Jkt 223001
List of Subjects in 48 CFR Parts 245 and
252
Government procurement.
Ynette R. Shelkin,
Editor, Defense Acquisition Regulations
System.
Therefore, 48 CFR parts 245 and 252
are amended as follows:
■ 1. The authority citation for 48 CFR
parts 245 and 252 continues to read as
follows:
Authority: 41 U.S.C. 421 and 48 CFR
chapter 1.
PART 245—GOVERNMENT PROPERTY
245.102
Policy.
2. Section 245.102 is amended by
adding paragraph (5) to read as follows:
*
*
*
*
*
(5) Reporting loss of Government
property. The Defense Contract
Management Agency (DCMA) eTools
software application is the DoD data
repository for reporting loss of
Government property in the possession
of contractors. The requirements and
procedures for reporting loss of
Government property to eTools are set
forth in the clause at 252.245–7002,
Reporting Loss of Government Property,
prescribed at 245.107.
■ 3. Section 245.107 is amended by
adding paragraph (c) to read as follows:
■
245.107
Contract clauses.
*
*
*
*
*
(c) Use the clause at 252.245–7002,
Reporting Loss of Government Property,
in solicitations and contracts that
contain the clause at FAR 52.245–1,
Government Property.
PART 252—SOLICITATION
PROVISIONS AND CONTRACT
CLAUSES
4. Add section 252.245–7002 to read
as follows:
■
252.245–7002 Reporting Loss of
Government Property.
As prescribed in 245.107(c), use the
following clause:
REPORTING LOSS OF GOVERNMENT
PROPERTY (FEB 2011)
(a) Definitions. As used in this clause—
Government property is defined in the
clause at FAR 52.245–1, Government
Property.
PO 00000
Frm 00006
Fmt 4701
Sfmt 9990
Loss of Government property means
unintended, unforeseen, or accidental loss,
damage, or destruction of Government
property that reduces the Government’s
expected economic benefits of the property.
Loss of Government property does not
include purposeful destructive testing,
obsolescence, normal wear and tear, or
manufacturing defects. Loss of Government
property includes, but is not limited to—
(1) Items that cannot be found after a
reasonable search;
(2) Theft;
(3) Damage resulting in unexpected harm
to property requiring repair to restore the
item to usable condition; or
(4) Destruction resulting from incidents
that render the item useless for its intended
purpose or beyond economical repair.
Unit acquisition cost means—
(1) For Government-furnished property, the
dollar value assigned by the Government and
identified in the contract; and
(2) For Contractor-acquired property, the
cost derived from the Contractor’s records
that reflect consistently applied, generally
acceptable accounting principles.
(b) Reporting loss of Government property.
(1) 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
application at https://www.dcma.mil/
aboutetools.cfm.
(2) Unless otherwise provided for in this
contract, the requirements of paragraph (b)(1)
of this clause do not apply to normal and
reasonable inventory adjustments, i.e., losses
of low-risk consumable material such as
common hardware, as agreed to by the
Contractor and the Government Property
Administrator. Such losses are typically a
product of normal process variation. The
Contractor shall ensure that its property
management system provides adequate
management control measures, e.g., statistical
process controls, as a means of managing
such variation.
(3) The Contractor shall report losses of
Government property outside normal process
variation, e.g., losses due to—
(i) Theft;
(ii) Inadequate storage;
(iii) Lack of physical security; or
(iv) ‘‘Acts of God.’’
(4) This reporting requirement does not
change any liability provisions or other
reporting requirements that may exist under
this contract.
(End of clause)
[FR Doc. 2011–2044 Filed 2–1–11; 8:45 am]
BILLING CODE 5001–08–P
E:\FR\FM\02FER3.SGM
02FER3
Agencies
[Federal Register Volume 76, Number 22 (Wednesday, February 2, 2011)]
[Rules and Regulations]
[Pages 6006-6008]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-2044]
-----------------------------------------------------------------------
DEPARTMENT OF DEFENSE
Defense Acquisition Regulations System
48 CFR Parts 245 and 252
[DFARS Case 2008-D049]
RIN 0750-AG64
Defense Federal Acquisition Regulation Supplement; Reporting of
Government Property Lost, Stolen, Damaged, or Destroyed
AGENCY: Defense Acquisition Regulations System; Department of Defense
(DoD).
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: DoD is issuing a final rule amending the Defense Federal
Acquisition Regulation Supplement (DFARS) to require contractors to
report loss of Government property to the Defense Contract Management
Agency (DCMA) eTools application.
DATES: Effective Date: February 2, 2011.
FOR FURTHER INFORMATION CONTACT: Ms. Clare Zebrowski, 703-602-0289.
[[Page 6007]]
SUPPLEMENTARY INFORMATION:
I. Background
This final rule provides a clause at DFARS 252.245-7002, Reporting
Loss of Government Property, that requires DoD contractors to report
the loss, theft, damage, and destruction of Government property to the
DCMA eTools application. The final rule changes--
DFARS 245.102(4), Policy, to make editorial changes to
remove subparagraphs that unnecessarily duplicate language contained in
the clause at 252.245-7002, Reporting Loss of Government Property. This
paragraph has been redesignated as 245.102(5).
DFARS 245.107(2), Contract clauses, to correct the
prescription for use of the clause at 252.245-7002, Reporting Loss of
Government Property, by removing the reference to FAR 52.245-2,
Government Property Installation Operation Services. This paragraph has
been redesignated as 245.107(c).
Clause 252.245-7002, Reporting Loss of Government
Property, to--
[cir] Revise the clause title;
[cir] Change the defined term ``acquisition cost'' to ``unit
acquisition cost'' and expand the definition to include contractor-
acquired property;
[cir] Revise the definition for ``Government property'' to state
that the term is defined in the clause at FAR 52.245-1, Government
Property;
[cir] Add a new definition for ``loss of Government property'';
[cir] Revise the paragraph (b) title and (b)(1) to accommodate the
new definition of ``Loss of Government property''.
[cir] Revise paragraph (b)(1) to add the word ``unit'' to reflect
that reporting value shall be at ``unit acquisition cost,'' and to
provide an updated Web page for accessing the eTools application;
Revise paragraph (b)(3) to make editorial and format
changes;
Revise paragraph (b)(4) to make editorial changes and to
delete reference to two specific property clauses and instead state
that the reporting requirements do not change any other liability or
other reporting requirement that may exist under the contract.
II. Discussion and Analysis
Three respondents submitted four comments on the proposed rule,
which was published at 75 FR 22729 on April 30, 2010. Comments were due
June 29, 2010. A discussion of the comments received follows:
A. Clause Prescription
Comment: One respondent recommended revising paragraph 245.107(2)
to remove the reference to FAR 52.245-2, Government Property
Installation Operation Services, as the loss of property reporting
requirement stems directly from FAR 52.245-1 and not from 52.245-2.
DoD Response: DoD has revised the language accordingly.
B. Definition of ``Government Property''
Comment: One respondent recommended that the definition of
``Government property'' in the proposed clause should make clear that
it includes all property acquired by the contractor through indirect
cost accounts.
DoD Response: The recommendation is outside the scope of the rule.
The rule does not seek to alter or modify the definition of Government
property as prescribed in the Federal Acquisition Regulations (FAR
52.245-1). However, in order to clarify the Government property
definition, DoD has replaced the definition of ``Government property''
in the clause with a reference to the definition of ``Government
property'' in FAR 52.245-1.
C. Use of Term ``Losses''
Comment: One respondent recommended modifying the clause language
in paragraph (b) to replace the term ``lost, stolen, damaged, or
destroyed'' with ``losses'' to maintain simplicity and consistency.
DoD Response: A new definition for ``loss of Government property''
has been added to the clause at 252.245-7002, Reporting Loss of
Government Property.
D. Definition of ``Estimated Harm''/``Acquisition Cost''
Comment: One respondent recommended adding a new definition of
``estimated harm'' to the proposed clause at 252.245-70XX and stated
that estimated harm should consider other factors such as residual
value, replacement cost, and care and handling cost. The respondent
stated that the estimated harm should be expressed as a numeric value,
and that providing only the acquisition cost without providing
estimated harm to the Government is misleading and may result in poor
decisions. According to the respondent, industry experience has proven
that there typically is minimal or no harm to the Government and, even
though the Government is self insured, replacement of lost items rarely
occurs.
Similarly, a respondent stated the need to address the materiality
of the loss and that without this information, decision makers may be
misled and losses may be overstated. Further, according to the
respondent, the rule should then explain how to compensate the
Government for losses when the ``indirect costs used to buy the
property'' have been partially allocated to Government contracts and
partially allocated to commercial work or firm-fixed-price contracts.
DoD Response: These recommen da tions are outside the scope of the
rule. The clause seeks only to require the electronic reporting of data
pertaining to Government property losses. It does not require reporting
of the estimated harm or materiality of such losses to the Government.
However, in order to clarify the reporting value, the clause
definition of ``acquisition cost'' has been revised to a definition of
``unit acquisition cost.'' The new definition clarifies that for
Government-furnished property, the unit acquisition cost is the dollar
value assigned by the Government and identified in the contract; and
adds the method for determining the reporting value for contractor-
acquired property. The revised definition is more comprehensive and
clarifies the property values to be reported.
The final rule also revises paragraph (b)(4) of the clause to
remove the references to 52.245-1 and 52.245-2, since the contract may
contain other liability or other reporting requirements. This change
clarifies that the new clause does not impact any other contractual
reporting or liability requirements.
III. Executive Order 12866
This rule was not subject to Office of Management and Budget review
under Executive Order 12866, dated September 30, 1993. This rule is not
a major rule under 5 U.S.C. 804.
IV. Regulatory Flexibility Act
DoD has prepared a final regulatory flexibility analysis consistent
with 5 U.S.C. 604. A copy of the analysis may be obtained from the
individual specified herein. The analysis is summarized as follows:
The objective of this rule is to provide DoD with a single
repository for reporting loss of Government property to improve
accountability and control of DoD assets and contractor oversight.
None of the comments from the three respondents was in response to
the initial regulatory flexibility analysis. Therefore, there is no
change to the rule in this regard.
The rule applies to DoD contractors provided with Government
property. The clause at 252.245-7002, Reporting Loss of Government
Property, requires the contractor to use the Defense Contract
Management Agency eTools software application for reporting loss of
[[Page 6008]]
Government property. The eTools software can be accessed from the DCMA
homepage External Web Access Management application at https://www.dcma.mil/aboutetools.cfm.
Unless otherwise provided for in the contract, these requirements
do not apply to normal and reasonable inventory adjustments, i.e.,
losses of low-risk consumable material such as common hardware, as
agreed to by the contractor and the Government property administrator.
Such losses are typically a product of normal process variation. The
contractor shall ensure that its property management system provides
adequate management control measures, e.g., statistical process
controls, as a means of managing such variation.
Reporting requirements apply to losses of Government property
outside normal process variation, e.g., because of--
(1) Theft;
(2) Inadequate storage;
(3) Inadequate security; or
(4) ``Acts of God.''
This rule is not expected to have a significant economic impact on
a substantial number of small entities within the meaning of the
Regulatory Flexibility Act, 5 U.S.C. 601, et seq., because any start-up
costs that contractors will incur to comply with the rule are expected
to be minimal. The rule is expected to have a positive or beneficial
impact on small entities by making available a Government-provided
software application to use for reporting purposes. The rule does not
duplicate, overlap, or conflict with any other Federal rules.
V. Paperwork Reduction Act
This final rule does not significantly increase the information
collection requirements set forth under FAR 52.245-1(f)(vi), approved
by the Office of Management and Budget under OMB clearance number 9000-
0075. The rule will have a minimal impact on contractors, as such
reporting is already common practice and is on an exception basis,
i.e., only when reportable property is lost. There were no comments
received on the proposed rule concerning information collection.
List of Subjects in 48 CFR Parts 245 and 252
Government procurement.
Ynette R. Shelkin,
Editor, Defense Acquisition Regulations System.
Therefore, 48 CFR parts 245 and 252 are amended as follows:
0
1. The authority citation for 48 CFR parts 245 and 252 continues to
read as follows:
Authority: 41 U.S.C. 421 and 48 CFR chapter 1.
PART 245--GOVERNMENT PROPERTY
245.102 Policy.
0
2. Section 245.102 is amended by adding paragraph (5) to read as
follows:
* * * * *
(5) Reporting loss of Government property. The Defense Contract
Management Agency (DCMA) eTools software application is the DoD data
repository for reporting loss of Government property in the possession
of contractors. The requirements and procedures for reporting loss of
Government property to eTools are set forth in the clause at 252.245-
7002, Reporting Loss of Government Property, prescribed at 245.107.
0
3. Section 245.107 is amended by adding paragraph (c) to read as
follows:
245.107 Contract clauses.
* * * * *
(c) Use the clause at 252.245-7002, Reporting Loss of Government
Property, in solicitations and contracts that contain the clause at FAR
52.245-1, Government Property.
PART 252--SOLICITATION PROVISIONS AND CONTRACT CLAUSES
0
4. Add section 252.245-7002 to read as follows:
252.245-7002 Reporting Loss of Government Property.
As prescribed in 245.107(c), use the following clause:
REPORTING LOSS OF GOVERNMENT PROPERTY (FEB 2011)
(a) Definitions. As used in this clause--
Government property is defined in the clause at FAR 52.245-1,
Government Property.
Loss of Government property means unintended, unforeseen, or
accidental loss, damage, or destruction of Government property that
reduces the Government's expected economic benefits of the property.
Loss of Government property does not include purposeful destructive
testing, obsolescence, normal wear and tear, or manufacturing
defects. Loss of Government property includes, but is not limited
to--
(1) Items that cannot be found after a reasonable search;
(2) Theft;
(3) Damage resulting in unexpected harm to property requiring
repair to restore the item to usable condition; or
(4) Destruction resulting from incidents that render the item
useless for its intended purpose or beyond economical repair.
Unit acquisition cost means--
(1) For Government-furnished property, the dollar value assigned
by the Government and identified in the contract; and
(2) For Contractor-acquired property, the cost derived from the
Contractor's records that reflect consistently applied, generally
acceptable accounting principles.
(b) Reporting loss of Government property. (1) 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 application at https://www.dcma.mil/aboutetools.cfm.
(2) Unless otherwise provided for in this contract, the
requirements of paragraph (b)(1) of this clause do not apply to
normal and reasonable inventory adjustments, i.e., losses of low-
risk consumable material such as common hardware, as agreed to by
the Contractor and the Government Property Administrator. Such
losses are typically a product of normal process variation. The
Contractor shall ensure that its property management system provides
adequate management control measures, e.g., statistical process
controls, as a means of managing such variation.
(3) The Contractor shall report losses of Government property
outside normal process variation, e.g., losses due to--
(i) Theft;
(ii) Inadequate storage;
(iii) Lack of physical security; or
(iv) ``Acts of God.''
(4) This reporting requirement does not change any liability
provisions or other reporting requirements that may exist under this
contract.
(End of clause)
[FR Doc. 2011-2044 Filed 2-1-11; 8:45 am]
BILLING CODE 5001-08-P