United States
Environmental Protection
Agency
Office of Administration
and Resources Management
Washington, DC 20460
December 1988
Contractor's  Guide
for Control of
Government  Property
       PROPERTY OF U.S.EPA
          671163
                              Printed on Recycled Paper

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Contractor's Guide
for Control of
Government Property
United States
Environmental Protection Agency

December 1988

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Please send any comments or suggestions about this publication to:
Chief, Property Management Section
U.S. Environmental Protection Agency, PM-215
Washington, D.C. 20460
Additional copies of this Guide may be obtained from your Contract
Property Administrator.

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To All EPA Contractors:
Welcome to the Environmental Protection Agency. Whether or not this is your
first contract with EPA, if you are a private corporation, a university or a Superfund
contractor, this Guide will help you learn the basics of EPA property administration. It
provides information needed by contractors to administer government property under
an EPA contract.
This publication replaces the November 1981 edition of the Guide for Control of
Government Property by Contractors. The revised Guide was prepared by the
Facilities Management and Services Division. It was developed under Contract
Number 68-W8-O1 25, in concert with the EPA Contract Property Administration offices
located in Washington, D.C.; Cincinnati, Ohio; and Research Triangle Park, North
Carolina.
We hope this Guide provides the information you need. If you have unanswered
questions after reading it, please contact your Contract Property Administrator for
further assistance.
Rich L’ mley
Director
Facilities Management and Services Division

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Contractor’s Guide for Control of Government Property
TABLE OF CONTENTS
INTRODUCTION
Purpose and Scope of the Guide
1
Chapter 1
How to Use the Guide
1
Key Players at EPA
2
CONTRACTOR
Contractor Responsibility
5
RESPONSIBILITY
AND LIABILITY
Contractor Liability
6
Chapter 2
CONTRACT START-UP
Authorization
7
Chapter 3
Start-up Inventory
8
Property Control System
9
CONTRACT
ADMINISTRATION
Acquiring Property
15
Chapter 4
Reporting and Reimbursement for Acquisitions
17
Property Identification
21
Annual lnventory
24
Missing, Stolen and Damaged Property
26
Records
27
Storage and Movement
30
Trade-ins
30
Excess Property
31
Cannibalization
33
Contamination
33

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Table of Contents
CONTRACT
CLOS E-OUT
Chapter 5
Final Inventory and Certification .
Disposition of Property
35
36
SPECIAL
Superfund
39
CONSIDERATIONS
Chapter 6
On-Site Contractors
41
Foreign Governments/International Organizations
. . .
.41
Non-Profit/Educational Organizations
42
Vehicles
43
FORMS AND
EPA Form 1730-1 for CAP
47
INSTRUCTIONS
Chapter 7
EPA Form 1700-7 for GFP
48
GLOSSARY
Glossary
53
APPENDIX
Condition Codes
61
Contract Property Administrator Addresses
62
INDEX Index 63
ii Contractor’s Guide for Control of Government Property

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Table of Contents
ABBREVIATIONS
CAP Contractor-acquired property
EPA Environmental Protection Agency
FAR Federal Acquisition Regulation
FEDSTR IP Federal Standard Requisitioning and Issue Procedures
FIRMR Federal Information Resources Management Regulation
FPMR Federal Property Management Regulations
FPS Federal Protective Service
GFP Government-furnished property
GSA General Services Administration
Contractor’s Guide for Control of Government Property

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INTRODUCTION Chapter 1
PURPOSE AND SCOPE This Guide outlines the basic policies and procedures for both
OF THE GUIDE cost-reimbursement and fixed-price contractors to follow in the
management, control and use of government property
provided under an EPA contract. This includes government-
furnished property (GFP) as well as contractor-acquired
property (CAP). The Guide applies to contract property
administration for the management of supplies, materials and
both real and personal property that is furnished by the
Government or acquired by contractors, including rented or
leased items.
When the generic term ‘property” is used in the text, it refers
to personal property; other types of property are specifically
identified. Software has been classified by EPA as in formation,
not property; therefore, the control of software is not included
in this Guide.
The Guide complements the Federal Acquisition Regulation
(FAR), the Federal Property Management Regulations
(FPMR), and the Federal Information Resources Management
Regulation (FIRMR). It is a summary of EPA policies and pro-
cedures for contract property administration and therefore
may not cover every question you have. If you need further
assistance or additional information, contact your Contract
Property Administrator.
HOW TO USE THE To help you locate the information you need, this Guide is
GUIDE structured witnin a basic framework, as shown in the Table of
Contents. Chapter 1 contains an overview of the key players
at EPA who will be involved in the property aspects of your
contract. Chapter 2 outlines your responsibilities and liability
for government property.
Life Cycle Chapters Chapters 3 - 5 are organized by the life cycle of your contract,
beginning with start-up and followed by contract administration
and close-out. These chapters apply to all contractors.
Contractor’s Guide for Control of Government Property Page 1

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Chapter 1 Introduction
Special Consideration Chapter 6 covers additional features which may or may not
Chapters apply to your contract. If your contract falls under any of these
categories, read the appropriate part of the chapter in addition
to the standard life cycle chapters. These special considera-
tions are: Superfund contracts, on-site contractors, non-profit
or educational organizations, foreign governments or interna-
tional organizations, and government vehicles.
In the remainder of the Guide, you will find forms and instruc-
tions, a glossary of property terms, an appendix with condition
codes and EPA addresses, and an index. We suggest that you
review the glossary to ensure that you understand exactly what
is meant by terms such as personal property, nonexpendable
property and accountable property. Use of the index is encour-
aged as well. For example, if you want to locate information
about excess property, the appropriate page numbers are
listed under “excess”.
KEY PLAYERS AT EPA The key players at EPA that you will deal with regarding your
government property are: the Contract Property Administrator,
Project Officer and Contracting Officer. Generally, the Contract
Property Administrator monitors, coordinates and manages
property requirements. The Project Officer provides technical
direction and interfaces with the Contract Property Adminis-
trator about your property requirements, and the Contracting
Officer approves and authorizes the transactions. This section
describes their overall roles in the authorization, administration
and oversight of contract property.
The Contract Property Administrator is the designated rep-
resentative of the Contracting Officer and will be referenced in
the contract. References in the FAR to the Plant Clearance
Officer apply to the Contract Property Administrator at EPA.
The Contract Property Administrator administers the contract
requirements and obligations related to government property,
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Introduction Chapter 1
and is responsible for all property administration functions from
acquisition of the property to final disposition.
You should deal directly with the Contract Property Adminis-
trator in the administration of your government property. It is
the Contract Property Administrator’s responsibility to coordi-
nate property issues with the Project Officer. Within EPA, the
Contract Property Administrator is also assigned the respon-
sibility of reviewing and approving property control systems
and notifying you when your property control system does not
meet EPA requirements. The Contract Property Administrator
may not obligate government funds, however, or execute
modifications to your contract.
There are three Contract Property Administration office
locations at EPA: Washington, D.C.; Cincinnati, Ohio; and
Research Triangle Park, North Carolina (RTP). Use of the term
“Contract Property Administrator” in this Guide refers to the
Contract Property Administrator at the office designated in
your contract, as stated in the clause entitled “Designation of
Property Administrator”.
The Project Officer is an Agency program official who is
designated in the contract as the technical representative of
the Contracting Officer. Project Officers are certified through
art EPA program, and are appointed to administer and monitor
contract performance. They are not authorized to obligate
government funds or to execute contract modifications. Your
Project Officer cannot grant you approval to acquire property
with contract funds, nor can the Project Officer authorize you
to transfer or dispose of any items.
The Project Officer determines the property requirements for
contract performance. After screening and concurrence by the
Contract Property Administrator, the Project Officer furnishes
the Contracting Officer with a detailed list of government prop-
erty to be provided. The physical relocation of the property
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Chapter 1 Introduction
from EPA’s in-house location to the contractor’s site is coordi-
nated by the Project Officer.
The Project Officer is responsible for providing a property justi-
fication to the Contracting Officer for property authorized under
a contract. The justification is reviewed by the Contract Prop-
erty Administrator prior to submittal to the Contracting Officer.
The Contracting Officer is the only EPA official who can
authorize you to use government property or acquire property
under the contract. The Contracting Officer’s authorization will
be stated in your contract or as a modification to your contract.
Your Contract Property Administrator or Project Officer will nor-
mafly coordinate property matters with the Contracting Officer.
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You must assure that your employees are knowledgeable of
your contract and of the FAR, FPMR and FIRMR provisions;
they should have sufficient training in all areas of contract
property administration. The General Services Administration
(GSA) and several non-government training institutions offer
three to five day courses in the administration of contractor-
held property. These courses provide insight into government
property administration. Your Contract Property Administrator
can give you more specific information on these courses.
It is your responsibility to designate an individual within your
organization as the prime contact for the Contract Property
Administrator. Provide the individual’s name, address, tele-
phone number and signature at the inception of the contract.
In the event that any of this information changes, including your
organization’s address or the name of the contact person,
notify your Contract Property Administrator.
Contractors are responsible for maintaining the Government’s
official property records unless the contract cites the FAR
clauses that relieve that responsibility. If you are charged with
the responsibility of maintaining the official property records,
you may utilize EPA’s Personal Property Accounting System
with a personal computer and FOCUS software, if authorized
by the Contracting Officer.
It is the contractor’s responsibility to review the contract
clauses and assure that the government property required to
accomplish the scope of work is accurately reflected in the
contract. The basic contract will include a detailed listing of
accountable government property (nonexpendable personal
property with an acquisition cost of $1000 or more, and sensi-
tive items with an acquisition cost of $300 or more). If account-
able property is provided without contract authorization,
promptly notify your Contract Property Administrator.
CONTRACTOR Chapter 2
RESPONSIBILITY AND LIABILITY
CONTRACTOR
RESPONSIBILITV
Prime Contact
Maintenance of Official
Records
Contract Requirements
Contractor’s Guide for Control of Government Property
Page 5

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Chapter 2 Contractor Responsibility and Liability
Property Control The contractor is held accountable and responsible for govern-
ment property, regardless of value, from the time of receipt until
the disposal of each item as directed by the Contract Proper-
ty Administrator. You are responsible for the control of all GFP
and CAP upon delivery of the property into your custody.
Acquisitions Acquisitions of accountable property must be authorized by
the Contracting Officer before acquiring the item(s). Identifica-
tion of the property will be stated in the basic contract or a sub-
sequent modification. Accountable property that is listed in
work assignments, delivery orders or task orders is not
authorized for acquisition or use until it has been authorized in
the contract or contract modification.
Decontamination The contractor is responsible for decontaminating government
property which may have been contaminated while in the
contractor’s possession. When government property is trans-
ferred, disposed of, or excessed, a decontamination plan must
be sent to the Contract Property Administrator. All transfers
and disposal actions described in this Guide relate to decon-
taminated property.
Subcontractor Property It is the prime contractor’s responsibility to hold the sub-
contractor responsible for reporting any transactions involving
government property. Subcontractors are governed by the
same requirements as prime contractors for the control of
government property.
CONTRACTOR Contractors may be liable for government property in their
LIABILITY possession, subject to the terms of the contract. You may be
liable when government property is missing, damaged or
stolen, or when there is evidence of improper or unreasonable
consumption. If approval of your property control system was
withheld or withdrawn, or if you fail to correct deficiencies iden-
tified by the Contract Property Administrator, the Contracting
Officer may require you to accept a higher level of liability for
loss of or damage to government property.
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CONTRACT START-UP Chapter 3
Chapters 3 - 5 apply to all contractors (Contract Start-Up, Contract Administra-
tion, and
Contract Close-Out). Portions of Chapter 6, Special Considerations,
may also
apply to you.
AUTHORIZATION Prior to the start of work, review your contract concerning
the authorization of property. Property that is listed in work
assignments or task orders is not authorized for acquisition or
use until it has been authorized in the contract. If government
property not listed in the contract is provided to you, notify your
Contract Property Administrator.
Review the detailed listing of property in your contract to as-
sure that the government property required to accomplish the
scope of work is accurately reflected in the contract. Be sure
to check your contract for the clauses described in this sec-
tion of the Guide, If any of the clauses described below are
included in your contract, refer to the FAR to determine your
full requirements, responsibilities and liability for the property.
Maintenance of Official You are responsible for maintaining the official property
Records records unless the contract cites the FAR clauses that relieve
you of that responsibility. The clauses are normally cited in Sec-
tion I of the contract, and may be incorporated by reference.
Residual Property The residual property clause authorizes use of property from
a previous contract. If your contract contains this clause, be
sure that you know exactly what is included in the residual
inventory, and that the inventory listing is correct.
Government-Furnished All accountable government property provided under your
Property contract will be described and/or listed in the contract. The list-
ing of accountable property items should include an item
description (sometimes referred to as expanded nomencla-
ture), manufacturer’s name, serial number, model number,
and EPA decal number.
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Chapter 3 Contract Start-Up
Contractor-Acquired If you are authorized to acquire accountable property from a
Government Property vendor, your contract will include a clause that authorizes the
transactions. Accountable property that you acquire and
charge to the contract must be authorized on an individual line
item basis in the contract.
Designation of Property The Designation of Property Administrator clause provides the
Administrator name and office location of your Contract Property Admin-
istrator at EPA.
Using Property Under More Government property is to be used only under the contract for
than One Contract which it is authorized, unless otherwise authorized by the
Contracting Officer. If your organization has more than one
contract with EPA, the Contracting Officer may authorize use
of government property under more than one contract.
START-UP INVENTORY At the start of your contract, you are required to conduct a
physical inventory of accountable government property pro-
vided to you or acquired with contract funds, as well as any
property being leased or rented with contract funds. If your
contract is a follow-on, make every effort to conduct a joint
inventory with the previous contractor. Your start-up inventory
may be done concurrently with the transfer from the previous
contractor.
Inventory Requirements The start-up inventory will be a physical inventory. Any dis-
crepancies with the government-furnished listing in the con-
tract should be noted. The inventory must include the following
information:
EPA decal number Item description
Manufacturer’s name Condition code
Manufacturer’s model number Acquisition date
Manufacturer’s serial number Acquisition cost
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Contract Start-Up Chapter 3
Record and reconcile your inventory results with the property
clause in your contract, and submit the report to your Contract
Property Administrator. For overages, shortages or damage,
provide a statement of the condition and apparent cause.
Include the name of your company’s property contact for the
Contract Property Administrator. Prime contractors must sub-
mit a consolidated inventory report of all government property,
to include subcontractor inventory.
PROPERTY CONTROL Shortly after contract award, the Contract Property Admin-
SYSTEM istrator will request a copy of the written procedures for your
internal property control system unless EPA already has it. EPA
reviews the property control system to determine if it is ade-
quate to assure compliance with government regulations and
contract terms, and to assure that the property is adequately
protected, maintained, utilized and accounted for. The ade-
quacy of your property control system helps to demonstrate
your ability to manage government property.
Elements An acceptable property control system must comply with the
FAR. It identifies all types and classes of government property
and addresses your policies on the following elements:
Acquisition Maintenance and calibration
Receiving Physical inventory
Identification and records Subcontract administration
Storage and movement Reporting
Property consumption Disposal
Utilization Contract completion or termination
The property control system must enable you to locate any
item of government property within, a reasonable time. Gen-
erally, this should not exceed two working days. The system
should also provide a complete, current, auditable record of
all transactions, which the Government may review as fre-
quently as conditions warrant.
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Chapter 3 Contract Start-Up
The following section briefly outlines the major requirements
for each element of your property control system.
Acquisition
• Items are ordered in accordance with quantities stipulated
in the contract.
• Existing equipment on-hand is screened before submitting
requisitions.
Receiving
• Correct source is identified (either government-furnished or
contractor-acquired).
• Property received is inspected for discrepancies.
• Receiving report is prepared and distributed to appropriate
offices.
Identification and Records
• Discrepant items are segregated and documented (partial
shipments, for example).
• Equipment received is promptly and properly classified and
labeled with EPA property decal.
• Inventory control and financial records are established and
maintained for the property.
Storage and Movement
• Basic information is contained in the records, as outlined in
the FAR.
• An adequate system to control movement and location of
property is maintained.
• Property in storage is protected, preserved and inspected
to prevent loss, damage and deterioration.
• Adequate safeguards are provided for securing government
property.
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Contract Start-Up
Chapter 3
.
.
S
S
S
• A first in/first out system is established for stored items, sub-
ject to age deterioration and warranty expiration.
Property is consumed only under contract performance.
Stock record system of records is maintained for consum-
able items.
Methods are established to ensure that government proper-
ty is utilized only for purposes authorized by the contract.
Contractual authorization is obtained to use property for
other than its original authorized purpose.
A system is established to review and identify government
property for release when it is no longer required for con-
tract performance.
Criteria are established and retention of idle equipment is
documented and justified by the program manager.
A scheduled maintenance program is established, consist-
ing of a systematic written procedure for servicing and
inspecting equipment.
• The goal is safe, efficient and economical operation of
government equipment.
• A program is implemented for the following categories of
maintenance: preventive maintenance, routine repair and
adjustment, emergency repair, and calibration.
• A calibration control system is designed for all measuring
and test equipment (M&TE) to provide control of the evalua-
tion, calibration, maintenance, repair and use of M&TE.
•
•
Property Consumption
Utilization
Maintenance and
Calibration
Contractor’s Guide for Control of Government Property
Page 11

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Chapter 3 Contract Start-Up
• Records are kept of maintenance and calibration performed,
including cost and date.
• Maintenance and calibration are performed by technically
qualified personnel.
• System is capable of identifying high maintenance costs for
review; corrective action is taken by management and is
documented.
Physical Inventory • Physical inventories are conducted at the start of the con-
tract, annually on the anniversary of contract award, on a
special basis if directed by the Government, and upon con-
tract completion or termination.
• Inventories should be taken by personnel other than those
having custody of the property or maintaining the records.
• Inventories are conducted using the “floor-to-records”
approach.
• Physical inventory results are promptly reconciled with
property records.
• Inventory results and discrepancies are promptly reported
to the Contract Property Administrator.
Subcontract Administration • Procedures and controls are established to assure that
government property in a subcontractor’s possession is
adequately protected.
• Subcontractor is aware of contractual property provisions.
• Subcontractor will report loss, damage or destruction of
government property to the prime contractor for notification
of the Contract Property Administrator.
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Contract Start-Up Chapter 3
Reporting • Annuat inventory reports are provided to the Contract Prop-
erty Administrator on the anniversary date of contract award.
• Any loss of or damage to government property is immediate-
ly reported to the Contract Property Administrator.
• Government property excess to contract requirements is
promptly reported to the Contract Property Administrator.
• Retention of government property with low utilization rate is
justified and annually documented in writing.
• EPA Form 1730-1 is submitted for all accountable contrac-
tor-acquired and leased property; receipt of GFP is reported
to the Contract Property Administrator when the property is
received.
• Any other reports specified in this Guide or in the contract.
Disposal • Disposition instructions provided by the Contract Property
Administrator are carried out as directed.
• In accordance with instructions, the disposal of property is
properly documented.
• The quantity, condition code and location are reported ac-
curately for property items requiring disposition.
• A decontamination certification is included in the final inven-
tory report at the conclusion of the contract.
Contract Completion or • Residual property is reviewed for appropriate actions (such
Termination as decontamination or repair) before transfer or disposal of
property.
• A full accounting is effected of all government property in
possession of the prime contractor and subcontractor. The
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Chapter 3 Contract Start-Up
final inventory report is submitted promptly so that disposal
of the property may be carried out in an orderly fashion.
• Pending issues are resolved, such as inventory adjustments
and determinations of liability, before contract closure.
• The Contract Property Administrator is notified when all
pending actions on property-related issues are completed.
EPA Review of System Your written system of procedures for property control must
be submitted to the Contract Property Administrator for review
within 30 days from the date it is requested. The review and
approval of a contractor’s property control system at a specific
site by one agency is binding on all other government depart-
ments and agencies, under interagency agreements.
However, EPA may impose special property administration
requirements to meet Agency needs.
Disapproval of System If your system does not comply with the FAR or contract
requirements, corrections will be required after notification of
deficiencies. If you do not correct the deficiencies within the
schedule that was agreed upon, the Contract Property Admin-
istrator will recommend disapproval of your system by the
Contracting Officer. Your liability for loss of or damage to
government property may increase if approval is withheld or
withdrawn.
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CONTRACT ADMINISTRATION Chapter 4
ACQUIRING
PROPERTY
There are several ways to acquire property. You may obtain
GFP through a transfer of property from an EPA office or
another contract, or by securing excess property (this requires
a special contract authorization). You may be authorized to
acquire property by purchasing it from GSA supply sources
(requiring a special authorization in your contract) or from a
private vendor, or you may be required to lease or rent the
property.
Authorization
Required
Regardless of how you acquire property, any use of account-
able government property under an EPA contract must be
authorized in writing by the Contracting Officer. Accountable
property is authorized in the contract on an individual line item
basis.
Unauthorized
Property
If you possess accountable GFP or CAP which has not been
Acquisitions
authorized by the Contracting Officer, immediately report
details about your possession of the property to your Contract
Property Administrator. The Contract Property Administrator
will provide your Project Officer and Contracting Officer with
the required information.
The Contracting Officer will determine if it is appropriate to
allow you to retain any unauthorized property. If the Contract-
ing Officer grants authorization, the acquisition will be ratified
and reflected in a contract modification.
Government-Furnished The furnishing of government property will be coordinated by
Property your Contract Property Administrator. You must identify your
needs to your Project Officer; the clear definition of your needs
before property is provided will facilitate the authorization
process. The transaction must be authorized before property
is physically transferred to you. When you receive the property,
examine it to see that it will meet your needs and that it is in
the proper condition for work performance. If the property
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Chapter 4 Contract Administration
does not meet your needs, notify the Contracting Officer
immediately.
Transfer Between Multiple If you have more than one contract with EPA and want to have
Contracts property transferred from one contract to another, coordinate
this through your Project Officers and the Contract Property
Administrators for both contracts. If the transfer is approved,
the Contracting Officer will issue a modification to effect the
transfer.
Acquiring Excess If you are located near a government installation, you may be
Government Property able to acquire excess property. This requires the approval of
your Contracting Officer to issue a screeners identification card
(GSA Form 2946). If authorized, your Contract Property
Administrator will provide catalogs of excess property. Contact
your Contract Property Administrator for details about obtain-
ing excess property.
Contractor-Acquired Prior to authorizing the acquisition of CAP, there is a justifica-
Property tion process and a determination of the method that is in the
best interest of the Government. The documentation of this
process and the analysis, called a property justification, is
coordinated by the Project Officer.
Property justifications are required for all leased items, regard-
less of value. If accountable CAP has been authorized under
your contract, the contract will specify whether the property is
to be purchased, leased or rented. The FAR and FPMR con-
tain detailed information about procurement requirements;
they may assist you in developing adequate procedures.
GSA Supply Sources You may be authorized to acquire property from a GSA sup-
ply source: FEDSTRIP (Federal Standard Requisitioning and
Issue Procedures) or Customer Supply Centers. A special
contract clause is required to authorize use of these supply
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Contract Administration Chapter 4
sources; your Contracting Officer must approve your participa-
tion in either program.
FEDSTRIP and Customer FEDSTRIP and Customer Supply Centers are operated by
Supply Centers GSA to serve the retail needs of federal agencies. Cost-
reimbursement contractors may also use these sources, if
authorized. FEDSTRIP is used for ordering large quantities of
items while Customer Supply Centers are intended for small
quantity orders. If you are interested in using these supply
sources, contact your Contract Property Administrator for
details.
REPORTING AND Prime contractors must submit consolidated reports that in-
REIMBURSEMENT FOR dude subcontractor acquisitions. Subcontractor acquisitions
ACQUISITIONS are subject to the same reporting and justification require-
ments as prime contractors for acquiring property under the
contract. The prime contractor coordinates subcontractor
transactions; subcontractors do not deal directly with the Con-
tract Property Administrator, except for subcontractors to the
Small Business Administration.
Remember: software has been classified by EPA as informa-
tion, not property; reporting requirements for software are not
included in this Guide.
Receipt of Upon receipt of accountable property items, report the acquisi-
Contractor-Acquired tions on EPA Form 1730-1, Report of Nonexpendable Govern-
Property ment Property Acquired by Contractor. Submit the completed
1730-ito your Contract Property Administrator (a copy of the
form must also be attached to your reimbursement voucher).
You may obtain blank forms from your Contract Property
Administrator. Specific instructions for completion of EPA
Form 1730-1, as well as a copy of the form itself, are located
in Chapter 7 of this Guide.
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Chapter 4 Contract Administration
Accountable property is nonexpendable personal property
with an acquisition cost of $1000 or more, and sensitive items
with an acquisition cost of $300 or more. All accountable
property items acquired under your contract must be reported
on EPA Form 1730-1, including such commodities as com-
ponents, accessories, improvements and add-ons that exceed
the accountable threshold as well as leased or rented items.
Be sure to report design, labor and/or transportation costs, if
applicable. These costs are included in the acquisition cost of
the item in the Agency’s records.
Discrepancies in Shipments If you discover an overage, shortage or damage upon receipt
of CAP, take whatever actions are necessary directly with the
vendor or the supplier.
Receipt of When you receive accountable GFP, notify your Contract
Government-Furnished Property Administrator by letter, EPA Form 1700-7, or any
Property transfer document immediately upon receipt of the property;
this applies to unauthorized as well as authorized government
property. If EPA Form 1700-7 is forwarded to you for signature,
return it to your Contract Property Administrator. If you send a
letter, include the decal number, acquisition cost, item descrip-
tion, model number, serial number, condition code and physi-
cal location of the property. Remember: prime contractors
report to the Contract Property Administrator all transfers to
subcontractors.
If your Contract Property Administrator forwards an EPA Form
1700-7 for your signature, verify that all information recorded
on the form is correct. Remember to check the condition of the
property and ensure that it will meet the requirements of the
work to be performed. If there are any discrepancies with the
form, notify your Contracting Officer upon receipt of the prop-
erty. Once you have verified the information on the form, sign
it where indicated and return it to your Contract Property
Administrator. See Chapter 7 for instructions and a copy of
EPA Form 1700-7.
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Contract Administration Chapter 4
Discrepancies in Shipments If you discover an overage, shortage or damage upon receipt
of GFP, or if property is unusable for any reason, provide a
statement of the condition and apparent cause to the Contract
Property Administrator. If necessary, file the appropriate claim
forms with the shipping company.
Leased Property The acquisition of leased property must be reported on EPA
Form 1730-1 if the acquisition cost of the leased item would
exceed the accountable threshold (see Glossary) and if the
lease term exceeds two months. Chapter 7 in this Guide con-
tains details about the specific information that is reported.
Notify your Contract Property Administrator at least 45 days
before the termination of a lease arrangement, whether due to
the expiration of the actual lease or the termination/expiration
of your contract. Also advise the Contract Property Admin-
istrator of any credits toward purchase of the item. The ad-
vance notice to EPA will allow the Government to decide
whether to purchase the item or return it upon lease expiration,
or to buy out the lease if it has not expired.
Subcontractor Acquisitions Accountable items acquired by a subcontractor are reported
by the prime contractor to the Contract Property Administrator
on EPA Form 1730-1. Reimbursement to a subcontractor is
coordinated and processed by the prime contractor; prime
contractors are reimbursed by EPA for authorized subcontrac-
tor acquisitions. EPA communicates directly with the prime
contractor only, except for contracts with the Small Business
Administration under its 8(a) program.
Receipt of Component Component parts or other items acquired for addition to a
Parts piece of property that has already been reported and decaled,
must be reported on EPA Form 1730-1, if the component’s
price exceeds the accountable threshold. State the EPA decal
number of the main unit and indicate that the components will
be added to that piece of property. Also record an entry for
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Chapter 4 Contract Administration
such costs as design, labor and transportation, if applicable;
these costs are added to the acquisition value of the item.
Fabricating Equipment If equipment, components or additional items are acquired
individually and then assembled into one main unit, report the
acquisition of accountable items individually as they are pur-
chased. Include a statement on EPA Form 1730-1 that one
major unit is being constructed. When the item has been
completed, notify the Contract Property Administrator, and
state this on your 1730-1.
Records If the construction of prototype or special research equipment
is authorized by the contract, report the costs for design and
labor along with the value of the components to include equip-
ment, material and supplies. Special test equipment fabricated
from materials that are government property are recorded as
government-owned immediately upon fabrication. If equip-
ment is fabricated from materials that are contractor-owned,
the completed item is recorded as government property when
title passes to the Government.
Installed Property Before installing government equipment at your site, you
must obtain authorization from your Contracting Officer, and a
modification or authorizing letter must be issued. Before install-
ing the property, consider how the property can be removed
at contract completion. It is suggested that you discuss this
with your Project Officer. Provide your Project Officer and Con-
tract Property Administrator with a detailed report on the cost
of removal and restoration, as well as a planned disposal
method. Include labor costs for installation and/or set-up, and
transportation costs in the total cost.
Reimbursement for Contractors generally submit SF-i 034 and/or SF-i 035, Public
Acquisitions Voucher for Purchases and Services Other than Personal, for
reimbursement of costs incurred under contract performance.
You must itemize acquisitions under the “Personal Proper-
ty/Equipment” category of your voucher and not simply list
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Contract Administration Chapter 4
them as “Other Direct Costs”. Refer to page 51 for an example.
The Contract Property Administrator receives a copy of your
voucher from the EPA paying office and checks voucher
entries to ensure that property acquisitions are reported under
the proper category.
Attach Copy of EPA Form The original EPA Form 1730-1 is submitted to your Contract
1730-1 Property Administrator. A copy of the form must be attached
to your voucher to support reimbursement claims. If you sub-
mit a voucher including costs for accountable personal proper-
ty items, but fail to attach a copy of the 1730-1, payment for
the personal property items may be suspended by the Con-
tracting Officer.
Instructions for Invoice Instructions for preparing vouchers are contained in EPA Form
Preparation 1900-34, Guide for the Preparation of Contractor’s Claims for
Reimbursement of Costs and Fees Under Cost-Reimburse-
ment Type Contracts, or EPA Form 1900-34A, Guide for the
Preparation of Contractor’s Claims for Reimbursement of
Costs and Fees Under Cost-Plus Award-Fee (CPAF) Type
Contracts. One of these publications was included in the con-
tract you received from EPA. If you need another copy of the
publication, contact your Contracting Officer.
If you have questions about voucher/invoice preparation and
processing related to personal property, please contact your
Contract Property Administrator. Any other questions about
vouchers should be directed to the paying office designated in
your contract.
PROPERTY This section describes requirements for decals, sensitive
IDENTIFICATION items, precious metals, and special test equipment.
Decals Decals are identifying tags designed by EPA to identify Agen-
cy property and to display the specific number assigned to a
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chapte Contract Administration
particular item, or to identify a specific class of property. EPA
has a variety of decals to identify property classifications:
• Bar code decals identity accountable property
• For other than accountable property, a decal that states “Property of U.S.
EPA” may be furnished, it requested
• Blank paper decals may be provided for components or other add-ons
(the EPA decal number of the main unit is written on the decal and affixed
to the component)
• Decals may be furnished for leased items (the decal number is preceded
by the letter “L”)
• Metal decals may be requested for property that is exposed to the en-
vironment
• Superfund decals identify Superfund property that is co-mingled with
non-Superlund property
If you are provided GFP without affixed decals, contact your
Contract Property Administrator in writing to request them.
Your Contract Property Administrator will furnish decals for ac-
countable CAP. The EPA decal numbers should be referenced
in your correspondence.
Items that Cannot be Decaled Some property items cannot be decaled. These include sub-
mersible items and those subject to chemical exposure and
weather conditions. You may request metal decals for property
that is exposed to the environment. Other items cannot be
decaled because the decal will not adhere to that particular
type of surface (pumps, outdoor sampling equipment and
some typewriters, for example). In these cases, make every
effort to indelibly mark the item by painting or etching the decal
number on it.
Items that cannot be decaled or otherwise marked with the
decal number, such as platinum crucibles, are subject to
additional controls. One option for recording the decal num-
bers is to attach the decal to your copy of EPA Form 1730-1
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Contract Administration Chapter 4
that shows receipt of the item. Stock cards can also be used,
recording detailed information about the item, and attaching
the decal to the stock card.
Sensitive Items Sensitive items are property items that are highly desirable and
easily converted to personal use, such as cameras, safety
shoes, glasses, protective clothing, uniforms, hand-held cal-
culators and stopwatches. Special efforts must be made to
control and protect sensitive items. Sensitive items that cost
$300 or more are classified as accountable property, and must
be reported on EPA Form 1730-1. If you need assistance in
identifying sensitive items, contact your Contract Property
Administrator for more information.
Signature receipts are required to establish individual account-
ability for all sensitive items regardless of value. The Sensitive
Item Custody Card, EPA Form 1740-21, may be used for this
and other control purposes, or you may utilize your own form.
Contact your Contract Property Administrator to obtain a copy
of EPA Form 1740-21.
Precious Metals When authorized, precious metals can be acquired directly or
indirectly, as government-furnished or contractor-acquired
personal property. Precious metals such as platinum, used in
the composition of crucibles or evaporating dishes, for ex-
ample, are commodities requiring sensitive item accountability
as well as classification as precious metals. Keep records of
the amount of precious metal comprising the commodity.
Some precious metals, such as gold and silver, may exist
within the boards and wiring of certain computer and lab-
oratory instruments. Maintain a record of this information to
assure appropriate recovery if outright disposal is considered.
Recovery of Precious Metals The recovery of precious metals must be reported annually to
your Contract Property Administrator; report the amount
recovered and the method of recovery. Contractors that
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Chapter 4 Contract Administration
consistently use photographic services, for example, must
develop a program for the recovery of silver. The Contracting
Officer will approve a credit to the contract when the silver is
properly disposed of at a profit.
Special Test Equipment Special test equipment authorized as GFP or CAP under the
and Components contract wiU be marked with a serial number and the EPA decal
number. If it is not feasible to mark the equipment, report this
to the Contract Property Administrator. Special test equipment
components valued at $1000 or more and incorporated in a
manner that makes removal and re-utilization feasible and
economical, must also be marked. Property identification
should be legible, permanent, conspicuous, and tamper-proof,
consisting of serial number and EPA decal number. Remem-
ber: off-the-shelf testing equipment is not classified as special
test equipment (see Glossary).
ANNUAL INVENTORY A physical inventory of accountable government property must
be conducted annually on the anniversary date of contract
award. Your inventory must include accountable government
property items acquired, furnished, rented and/or leased
under the contract. Employees who conduct inventories
should not be the same individuals who maintain the property
records.
Following the physical inventory, prepare an inventory report
and submit it to your Contract Property Administrator. Include
all accountable government property in your possession, even
if it has not been authorized by the Contracting Officer.
Remember: software has been classified by EPA as informa-
tion, not property; reporting requirements for software are not
included in this Guide.
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Contract Administration - Chapter 4
The minimum information that must be recorded follows:
EPA decal number Associated EPA decal numbers
Manufacturer’s name Item description
Manufacturer’s model number Acquisition date
Manufacturer’s serial number Actual cost of item
Subcontractor Inventory Prime contractors must submit a consolidated report of all
accountable government property under the contract, to
include subcontractor inventory. Subcontractors should report
their inventories to the prime contractor.
Certification Your annual inventory report must include a certification that
all items are required for continued contract performance and
are free from contamination. Property that is no longer usable
or required must be reported and identified as such.
Reconciliation of Inventory Reconcile your inventory with your property records. If you dis-
cover overages or shortages, report them in your cover letter
and submit back-up documentation, described in the follow-
ing paragraphs, to initiate the appropriate actions.
Overage Procedures For overages, your Contract Property Administrator will notify
your Project Officer. You will be contacted and asked to
provide information about how you acquired the property and
to justify your continued need for it. Your Project Officer may
initiate the property justification process if your retention of the
item is approved by the Contracting Officer.
Shortage Procedures First, attempt to locate the item. If you have property at more
than one site, check your other locations. If you cannot find
the item, submit a statement explaining all related circum-
stances, including the actions you have taken to try to locate
the property. In your letter, you may request relief of account-
ability for the item. If you suspect the item was stolen, contact
the local police immediately. The Missing, Stolen and
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Chapter 4 Contract Administration
Damaged Property section of the Guide outlines the required
content of your statement.
MISSING, STOLEN AND Promptly notify the Contract Property Administrator of any
DAMAGED PROPERTY loss, damage to, or destruction of government property in your
possession or control, or in the possession or control of a sub-
contractor. You are required to investigate the circumstances
of each incident and ensure that measures are taken to prevent
recurrence. You must report all known facts and circumstan-
ces of the case, to include the following information:
• Description of item(s) missing, stolen, damaged, or unreasonably con-
sumed to include condition of the item before it was missing/stolen, EPA
decal number (if applicable), manufacturer’s name and model number
• Date the item was last inventoried
• Cost of item and projected cost of repairs, for damaged property
• The last time the item was physically seen
• The names of individuals who used the item
• The names of individuals who had access to the item
• The name of the indMdual who discovered it was missing
• The date and time the item was first discovered missing
• The actions taken to try to locate the item
• Previous similar occurrences and measures taken to prevent future
occurrences
• Other facts or circumstances relevant to determination of liability and
responsibility for repair or replacement
Any loss due to theft or suspected theft must be reported
immediately to the local police and the Federal Protective Ser-
vice (FPS). The FPS is part of the Federal Protection and Safety
Division of the General Services Administration; check the U.S.
Government listings in your telephone directory for the phone
number.
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Contract Administration Chapter 4
Send a copy of the police report to the Contract Property
Administrator. In conjunction with the Contracting Officer, the
Contract Property Administrator will determine whether to
advise the Federal Bureau of Investigation of the case. The
Contracting Officer will determine your liability for losses.
RECORDS Your property records must identify all types and classes of
government property (expendable supplies, materials, nonex-
pendable personal property/equipment and real property).
The records must be safeguarded from tampering and/or
destruction. Separate property records should be maintained
for each contract.
Personal Property Your personal property records must ensure that the following
areas of property administration are covered (described in this
Guide, beginning on page 9):
Acquisition Maintenance and calibration
ReceMng Physical inventory
Identification and records Subcontract administration
Storage and movement Reporting
Property consumption Disposal
Utilization Contract completion or termination
Audit of Records Your records should provide a complete, current, auditable
record of all transactions. They must be accessible to auth-
orized government personnel; your records are subject to
review by the Government as conditions warrant. Compliance
reviews may take place at any reasonable time during contract
performance, completion, termination, or any time during the
period you are required to retain such records. For non-Super-
fund contracts, the records must be retained for the time period
specified in FAR 4.705 or for any longer period specified in your
contract.
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Chapter 4 Contract Administration
Basic Information Your inventory records must provide the following information
for every item of government property in your possession:
Expendable Supplies and Materials
Item description Unit of measure
Unit price Contract number
Quantity received Location
Quantity issued Disposition
Quantity on hand Posting reference
EPA Account Number
Nonexpendable Personal Property/Equipment
Owned Leased
EPA decal number EPA decal number
Item description Item description
Manufacturer’s name Manufacturer’s name
Manufacturer’s model number Manufacturer’s model number
Manufacturer’s serial number Manufacturer’s serial number
Actual cost of item Monthly cost
Acquisition date Installation date
Contract number Credits accrued
Government-furnished or Contractor’s current purchase
Contractor-acquired order number
Associated EPA decal numbers Expiration date
Maintenance cost Acquisition price if purchased
Current location Buy-out price
EPA Account Number EPA Account Number
Condition code
Secondary Sites There is no requirement to record unit price in the records
maintained at secondary and subcontractor sites, provided
that the records maintained at your primary site do contain unit
price. You must agree to furnish actual or estimated unit prices
on equipment you purchase when the need arises. If the
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Contract Administration Chapter 4
specific unit price cannot be obtained, you may use reasonable
estimates.
Real Property Real property consists of buildings, grounds, improvements,
structures, and features permanently installed in, or attached
to, facilities. Personal property installed on non-government
realty is treated like personal property, not real property. It is
subject to the controls for personal property outlined in this
Guide. Your property control records for real property must
contain the following basic information:
Real Property
Item description Quantity
Unit price Unit of measure
Contract number Location
Manufacturer’s name Date of transaction
Manufacturer’s model number Disposition posting reference
Manufacturer’s serial number Type of utilities attached to
Requirements Your property control records for all government real property,
including alterations, construction work and sites, will include
an itemized record of the description, location, acquisition cost
and disposition. These records must include maps, drawings,
plans, specifications, and supplementary data. They must be
complete and include original cost of the property, and im-
provements, changes and additions.
Capitalization If you incur any cost for new construction, assembly to the real
property, expansions, extensions, conversions, additions,
alterations and improvements, the cost will be capitalized by
the Agency. EPA must record the cost as a capitalized asset.
To assist the Agency in carrying out its responsibility, report
this information to EPA. The costs for real property involving
destruction of the facility or costs for ordinary maintenance or
repair of the property are not capitalized.
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Chapter 4 Contract Administration
STORAGE AND Guidelines for the storage and movement of government prop-
MOVEMENT erty are covered in this section.
Storage Take measures to protect and preserve stored government
property in order to prevent loss, damage and deterioration.
The property should be clearly identified as government prop-
erty and should not be intermingled with non-government
property. Ensure that stored items requiring special handling
(such as flammables or explosives) are stored safely and are
adequately protected.
Movement of Property Document the movement of government property when
property is removed from any of your sites for return to the
Agency or delivery to another contractor or agency. In these
instances, the physical relocation of the government property
must be documented in writing, with copies provided to the
Contract Property Administrator and the Project Officer. Notify
your Contract Property Administrator before the property is
moved, and instructions will be provided.
TRADE-INS Occasionally, trade-ins or exchanges may be authorized for
outdated equipment in a contractor’s inventory, or in order to
decrease the purchase cost of a new item. This type of trans-
action occurs rarely, and is authorized only when there is a
definite advantage to the Government.
Request for Authorization If you wish to trade in or exchange government property for
identical items, or for newer state-of-the-art items that are
similar, send a written request to your Project Officer, with a
copy to the Contract Property Administrator. Your Project
Officer will coordinate with the Contracting Officer, who may
grant approval for the trade-in or exchange. If the trade-in is
disallowed, and you have no further use for the item, it will be
offered to EPA offices for use, or referred to other agencies
through the routine excess process.
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Contract Administration hapter 4
EXCESS PROPERTY You must report to your Contract Property Administrator all
government property that is excess to your needs. Property in
your possession may be considered excess if it is no longer
required for contract performance or no longer in working
order and repair is considered impractical. Your Contract
Property Administrator will coordinate with your Project Officer
to determine if the item is required on another contract or by
the sponsoring program.
If the property cannot be used elsewhere in the Agency, there
is a series of steps that EPA must follow to dispose of excess
property. This is sometimes a lengthy process, and you may
be required to store the excess property while the procedures
are being carried out. You are responsible for the property as
long as it is in your possession.
Report of Excess The Contract Property Administrator will issue an SF-120
(Report of Excess Personal Property), an SF-126 (Report of
Personal Property for Sale), or an SF-i 5 (Sale of Government
Property) for government property, regardless of value, that is
not required for further use by the Agency. The appropriate
form will be executed and an informational copy forwarded to
your designated representative. This individual’s name nor-
mally appears on the forms as the contact person for anyone
requesting additional information on the excess property. The
Contract Property Administrator will advise your representative
of the steps that are involved and will issue final disposal
instructions when release of the items is appropriate.
Quite often, GSA forwards a form or a letter directly to the con-
tractor. If you receive any of this material directly from GSA,
please forward it to your Contract Property Administrator.
Information provided by GSA to your Contract Property
Administrator will be sent to you as needed.
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Chapter 4 Contract Administration
Disposal Instructions You may not dispose of any item until you receive the Con-
tracting Officer’s approval and complete written instructions
from the Contract Property Administrator. Disposal options
include sale, transfer, donation, abandonment, cannibaliza-
tion, scrapping or destruction of the property.
Once you have declared an item as excess, with the concur-
rence of your Project Officer, the Contract Property Admin-
istrator will either sell the item under limited sales procedures
or notify GSA of the excess item for transfer to another govern-
ment agency/department or contractor. If the item cannot be
transferred, it is offered to state agencies in the GSA region for
donation. If the states are not interested in the item, it is then
offered to the public for sale. If GSA is unable to dispose of the
item, the Contract Property Administrator is notified by GSA
that EPA is authorized to conduct a small lot sale or abandon
the item.
Abandonment and Excess property may be destroyed or abandoned by EPA only
Destruction after every effort has been made to dispose of it by other
authorized methods. EPA may elect to abandon property at a
site under certain circumstances during the life of a contract
or during close-out of the contract. Authorization for abandon-
ment requires a recommendation by the Contract Property
Administrator and the approval of the Contracting Officer.
If you are authorized to abandon an item, remove all govern-
ment markings from the item. Prepare and submit to your
Contract Property Administrator a certification that the item is
disposed of, and that it is disposed of in a manner that does
not endanger the health and safety of the public.
Donation When the Contract Property Administrator informs you that an
item cannot be transferred through GSA, you may be asked to
identify any non-profit organizations in your local community
that are interested in the item. If you are a for-profit firm, the
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Contract Administration Chapter 4
item must be donated to a third party, as previously described.
Local organizations to consider include high schools, voca-
tional schools, colleges or service organizations (such as
Goodwill Industries, Salvation Army, or Volunteers of America).
Letter from Organization Once you determine that an organization is interested, request
a letter from them stating that they are a non-profit organiza-
tion, and stating how the item will be used. The letter may be
forwarded directly to the Contract Property Administrator by
the organization, or through you to the Contract Property
Administrator. The property item must be free from contamina-
tion; it is your responsibility to provide this certification.
CANNIBALIZATION Cannibalization refers to either the alteration of a piece of
government property that is generally obsolete due to age or
technological advances, or reducing equipment to parts in
order to obtain needed components. In other words, you are
cannibalizing property when you remove serviceable parts
from an item, rendering it unserviceable or reducing its value.
You may not cannibalize government equipment unless
you have received the Contracting Officer’s approval and
written instructions from the Contract Property Administrator.
CONTAMINATION The descriptions of transfers and disposal actions contained
in this Guide assume that the property involved is decontam-
inated. For non-Superfund contracts, any contamination of
personal property/equipment must be immediately reported to
both the Contract Property Administrator and the Project
Officer along with a plan to decontaminate the item. The plan
must be comprehensive and provide statistical information
about the associated cost effectiveness, practicality and en-
vironmental issues. It must also indicate whether decontamina-
tion is economically feasible and whether or not the item should
remain in its present condition. The contractor is normally ex-
pected to decontaminate the item so that it may be used again.
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cli.pusr 4 Cocwrfl AdmiStatlon
Pegs 34 Co*ados’s Gilds kr Costol of Govsmmss* Property

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CONTRACT CLOSE-OUT Chapter 5
FINAL INVENTORY AND At the termination of your contract, you must conduct a final
CERTIFICATION inventory. Employees who conduct inventories should not be
the same individuals who maintain the property records.
Inventory Requirements The final inventory will cover all property items furnished
or acquired under the terms of your contract, including non-
expendable property items regardless of cost, and expendable
supply items and materiel not consumed during contract per-
formance. The amount of accrued lease credits for leased
property will also be included on the final inventory. Advise the
Contract Property Administrator of any and all unusual cir-
cumstances related to the inventory. Failure to provide the
prescribed final inventory will delay contract close-out and
final payment.
You are required to report the following information on your
final inventory:
EPA decal number Associated EPA decal numbers
Item description Acquisition cost
Manufacturer’s name Condition code
Manufacturer’s model number Quantity
Manufacturer’s serial number Physical location of item
Certification Final inventories must include the following certifications.
• “I certify that except for items consumed in the performance
of the contract, this inventory includes all materials, supplies
and equipment furnished by the Government or acquired by
the contractor for the account of the Government under
contract number ___________
• “I further certify that all property is in a state free from contam-
ination by any hazardous or toxic substances, and requires
no additional clean-up or decontamination efforts.’
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Chapter 5 Contract Close-Out
Contractors that have no government property in their posses-
sion must submit a certification to that effect.
Follow-on Inventories When government property under your contract is being trans-
ferred to another contract, ft is suggested that a joint inventory
be conducted. This may effect the transfer of the property,
relief of liability for the closing contractor and receipt by the
follow-on contractor.
Government Terminates If the Government elects to terminate a contract for the conven-
Contract ience of the Government, the requirements for a termination
inventory are the same as outlined for a final inventory. The
termination inventory must be conducted primarily for disposal
purposes.
Subcontractor Inventories Prime contractors must submit a consolidated inventory report
of all government property, to include subcontractor inventory.
Subcontractors should report their inventories to the prime
contractor. Subcontractor inventory is reported in the same
detail as outlined for prime contractors; state the location of
the subcontractor property being reported.
DISPOSITION OF Your Contract Property Administrator will provide written
PROPERTY instructions for the disposition of your property. You may
remove government property from your site only in accord-
ance with those instructions. You are responsible for the
property until final disposition has been completed.
Leased Property Notify your Contract Property Administrator at least 45 days
before a lease arrangement is terminated, and report the status
of any purchase credits. This applies to leases due to expire
when your contract ends, and to leases that continue after the
completion or termination of your contract. If the lease is
expiring, the Government may elect to purchase the item, or if
the lease has not expired, the Government may choose to buy
out the lease. Your advance notice to the Contract Property
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Contract Close-Out Chapter 5
Administrator will permit sufficient time for a determination to
be made.
Disposal Options In disposing of the property, the Government may elect to
exercise any of the options described below:
• if a cost reimbursement-type contract, allow the contractor
to buy contractor-acquired items/inventory at 100% of ac-
quisition value;
• return the items/inventory to the original supplier for credit,
less any reasonable restocking charge. (Do not finalize the
purchase or return any merchandise without written instruc-
tions from the Contract Property Administrator);
• transfer afl or part of the inventory to another contract;
• transfer the inventory to a licensee by means of a Revocable
License Agreement for a loan;
• have the inventory returned to EPA; or
• report the inventory as excess.
Other options the Government may consider for the disposi-
tion of your property include sale to the public, donation, aban-
donment, scrapping and destruction. Your Contract Property
Administrator will provide specific written instructions for the
disposal of your property. Some of these options are described
in this Guide, beginning on page 31.
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Chapter 5 Contract Close-Out
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SPECIAL CONSIDERATIONS Chapter 6
Chapters 1 - 5 apply to all contractors. Portions of Chapter 6 may also apply to
you. If your contract falls in any of these categories, read the appropriate section
of this chapter: Superfund, on-site contractors, foreign governments or interna-
tional organizations, non-profit or educational organizations, and government
vehicles. The information that appears in Chapter 6 is supplementary to the first
five chapters, describing only additional information or special considerations.
SUPERFUND This section applies to Superfund contracts and split-funded
contracts that include Superfund projects.
Utilization and Identification Property under Superfund contracts or projects is procured
of Property with Superfund monies. Because of the unique nature of
Superfund, it is imperative that all Superfund costs be clearly
identified, and that Superfund equipment be utilized only for
Superfund projects.
To clearly identify Superfund property, all items purchased in
whole or in part with Superfund funds and intermingled with
non-Superfund property items must be identified by affixing a
“Superfund unique” decal to the property. Contact your Con-
tract Property Administrator if you need decals.
Approval of Acquisitions Due to the nature of some Superfund contracts, when the
health and safety of the public might be involved, the contract
may provide for approval of property acquisitions by the On-
Site Coordinator. These provisions do not release you from the
reporting and justification requirements that apply to all EPA
contractors, described in Chapters 1 - 5 of this Guide.
Reporting Acquisitions When reporting acquisitions, it is important that you record the
correct EPA Account Number on EPA Form 1730-1. The
Account Number identifies the transaction as Superfund.
Superfund Installed Accountability for property installed as part of a remedial or
Property removal action (such as pond liners or pipes for a water treat-
ment system) and necessary for the continued functioning of
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Chapter 6 Special Considerations
the response action will be transferred from you to a third party
at the time of installation or upon completion of the contract.
You must obtain a written acceptance of the property from the
Project Officer before accountability is transferred from you to
another party.
Part of Remedial or Removal Forward a copy of the Project Officer acceptance to your
Action Contract Property Administrator along with a request for relief
of accountability. After Contracting Officer approval, account-
ability for the property will be transferred from you to EPA or
another organization.
Other Installed Property The following procedures apply to installed property which is
incidental to, but not necessary for, the continued operation of
the response action (such as fencing and lighting). Forward a
copy of the Project Officer acceptance to your Contract Prop-
erty Administrator along with a request for relief of account-
ability. When requesting relief of accountability, also report the
cost of removal, care and handling and the projected residual
value at completion of the project period. Disposition instruc-
tions will be issued by the Contract Property Administrator.
Records Retention The retention period for records is different for Superfund. You
must retain your Superfund property records for ten years after
final payment under the contract.
Disposal of Property The Contract Property Administrator is responsible for the sale
or transfer of unrequired Superfund property. The proceeds
from the sale or transfer of unrequired Superfund property
must be reimbursed to the Trust Fund.
Superfund contractors are guided by the instructions, procedures and
practices outlined in Chapters 1 - 5 of this Guide. In these chapters,
the requirements for inventories, points of contact acquisitions, trans-
fers, disposition and other property administration areas are covered.
Page 40 Contractor’s Guide for Control of Government Property

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Special Considerations Chapter 6
ON-SITE On-site contractors are organizations working under contract
CONTRACTORS on EPA premises. Any use of government real and personal
property must be authorized in the contract as GFP, or on an
“access to...” basis. In either instance, it will be itemized in the
basic contract or in a subsequent contract modification.
Suspected Theft of Property The procedures for missing, stolen and damaged property
vary slightly for on-site contractors when theft or suspected
theft is involved. Notify EPA ’s internal security office as well as
your Contract Property Administrator.
On-site contractors are guided by the instructions, procedures, and
practices outlined in Chapters 1 - 5 of this Guide. In these chapters,
the requirements for inventories, points of contact acquisitions, trans-
fers, disposition and other property administration areas are covered.
FOREIGN This section pertains to contractors that are foreign govern-
GOVERN MENTS/ ments or international organizations. Before awarding this type
INTERNATIONAL of contract, the Contracting Officer will determine whether
ORGANIZATIONS costs will be recovered or rental charged for the use of govern-
ment-furnished property. The contract will specify if property
is provided on a rental or non-rental basis. The official property
records will be maintained by EPA for all foreign governments
and international organizations.
Foreign governments or international organizations perform-
ing cost-reimbursement contracts may be permitted to carry
insurance for loss or damage to government property, and the
cost of the insurance permitted as an allowable expense to the
contract. Or they may claim immunity from liability, as deter-
mined by the Contracting Officer.
Contractors that are foreign governments or international organiza-
tions are guided by the instructions, procedures, and practices out-
lined in Chapters 1 - 5 of this Guide. In these chapters, the
requirements for inventories, points of contact acquisitions, transfers,
disposition and other property administration areas are covered.
Contractor’s Guide for Control of Government Property Page 41

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Chapter 6 Special Considerations
NON-PROFIT! When contractor-acquired property is authorized for a non-
EDUCATIONAL profit or educational organization under an EPA contract with
ORGANiZATIONS the primary purpose of research, there are special conditions
for the vesting of title. Except as outlined in this section of the
Guide or in the contract, title to CAP ordinarily vests in the non-
profit or educational organization working under a research
contract. At the Government’s discretion, however, in some
instances title may vest in the Government, and the non-
profit/educational organization will be subject to the require-
ments described in Chapters 1 - 5 of this Guide.
Acquisitions: Less than If you are classified in the basic contract or subsequent modifi-
$5000/$1 000 cations as an educational or non-profit institution, and you
obtain the Contracting Officer’s approval before acquisition of
the property, you will automatically acquire and retain title for
any items of personal property costing less than $5000 ac-
quired on a reimbursable basis. Contracts awarded prior to the
implementation of the Federal Acquisition Regulation (FAR) in
April 1984 must use $1000 as the dollar figure for vesting title.
The acquisition of all property items under the contract requires
the prior approval of the Contracting Officer. Within ten days
after the end of the calendar quarter during which you received
the property, you must furnish the Contracting Officer and the
Contract Property Administrator with a list of CAP valued at
less than $5000/$1 000 (refer to the FAR for more information).
Acquisitions: More than If property costs $5000/$1 000 or more, and the parties specifi-
$5000 1$1 000 catty agree in the contract, title may:
• vest in the contractor upon acquisition;
• vest in the contractor, subject to the Government’s right to
directtransfer of thetitletothe Government orto athird party
within 12 months after contract completion/termination; or
Page 42 Contractor’s Guide for Control of Government Property

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Special Considerations Chapter 6
• vest in the Government if the Contracting Officer determines
that vesting of title in the contractor would not further the
objectives of the Agency’s research program.
All acquisitions of contractor-acquired property valued at
$5000/$1000 or more must be reported on EPA Form 1730-1
to the Contract Property Administrator. A copy of the form must
be attached to the reimbursement voucher.
Title Considerations When title to CAP vests in a non-profit/educational institution,
neither depreciation, amortization or use charges are allowable
for those items under any existing or future government con-
tracts or subcontracts. Title may not be transferred to the
contractor if the contract is performed at a government instal-
lation (on-site) and there is a continuing need for the property
following contract completion.
The absence of an agreement covering title to property that
cost $5000/$1000 or more and that was acquired by the con-
tractor with government funds does not limit the Agency’s right
to act to vest title in a contractor. If there is no contract clause
showing who has title, the Contract Property Administrator will
record the vesting of title to the property in EPA.
Non-profit/educational organizations using property titled in EPA are
guided by the instructions, procedures and practices outlined in
Chapters 1 - 5 of this Guide. In these chapters, the requirements for
inventories, points of contact acquisitions, transfers, disposition and
other property administration areas are covered.
VEHICLES This section covers basic information about government
vehicles authorized under your contract. If you need additional
information, contact your Contract Property Administrator.
Title/Certificate of Origin If you are authorized to acquire vehicles under your contract,
you must ensure that each vehicle is registered in EPA’s name
on the title/certificate of origin. Do not register government
vehicles with the State; EPA will furnish license tags.
Contractor’s Guide for Control of Government Property Page 43

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Chapter 6 Special Considerations
How to Obtain License Tags You may request license tags in advance, upon receipt of the
Notification of Shipment from the vendor. Complete an EPA
Form 1730-1 to request tags; be sure to attach a copy of the
Notification of Shipment. The purpose of using Form 1730-1 in
this instance is to provide the information EPA needs for
processing your license tags.
Report the acquisition of the vehicle on EPA Form 1 730 1, in
the standard format (see Chapter 7 for details). After the vehicle
is received, forward the title/certificate of origin to the Contract
Property Administrator. Please furnish the name and telephone
number of your contact point for government property.
Returning License Tags It is your responsibility to return the license tags to your Con-
tract Property Administrator when the vehicle is taken out of
service. If the vehicle is replaced, new tags must be issued for
the replacement vehicle.
Identification of Government The Contract Property Administrator will provide license tags,
Vehicles legends and Agency decals to identify the vehicle as EPA-
owned. instructions will be provided for the identification of
special purpose vehicles.
Boats/Trailers If you receive a title/certificate of origin with a boat or trailer you
acquire under your contract, forward the title or certificate to
your Contract Property Administrator.
Reporting Requirements There are special reporting requirements for government
vehicles; they are outlined in the following section.
Accident Reports If a government vehicle is involved in an accident, complete a
report of the incident. Forward two copies of the accident
report to your Contract Property Administrator, and keep a
copy for your files.
Page 44 Contractor’s Guide for Control of Government Property

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Special Considerations Chapter 6
Maintenance Records You must ensure that government vehicles authorized under
your contract are maintained in safe, mechanically sound
condition. Keep current records of the cost and type of main-
tenance performed, such as oil changes, tire rotations, and
tune-ups. Your maintenance records must include back-up
documentation; these records are subject to review by the
Government.
Quarterly Vehicle Reports Each quarter, submit a report to your Contract Property Admin-
istrator listing all vehicles under your contract, and identifying
projected vehicle acquisition needs for the next one year
period. Include a copy of your maintenance records/log for the
current quarter, showing the type and cost of maintenance per-
formed. You do not need to send copies of the supporting
documentation.
Vehicle Listing Include the following information in your vehicle listing:
Type of vehicle (e.g., sedan or station wagon)
Model, make and year (e.g., 1986 Chevrolet Blazer)
License tag number
Serial number
Vehicle mileage
Vehicle location
Name and telephone number of your property contact
Projected Vehicle Acquisitions In your quarterly report, identify your projected vehicle acquisi-
tion needs for the next one year period, to include replace-
ments and additional vehicles. The standard lead time for
acquiring vehicles through GSA is8 - 10 months. Thus, it is
essential that you provide EPA sufficient time to process your
request.
Contractor’s Guide for Control of Government Property Page 45

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Chapter 6 Special Considerations
Disposal If you have been authorized by the Contract Property Admin-
istrator to dispose of EPA vehicles through release to a state
agency or buyer, you may not release the vehicle(s) until the
Contract Property Administrator provides you with one of the
following:
• a transfer of title initiated by the Contract Property Admin-
istrator; or
• SF-97, Certificate of Release of a Vehicle. This requires the
signature of the buyer/receiver and provides written instruc-
tions about relief of accountability.
GSA Vehicles A contractor may be authorized by the Contracting Officer to
lease GSA vehicles. The Contract Property Administrator will
assist in implementing this with GSA.
Page 46 Contractor’s Guide for Control of Government Property

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FORMS AND INSTRUCTIONS Chapter 7
This chapter provides sample forms and specific instructions
for the completion of EPA Forms 1730-1 and 1700-7. Use of
the forms is discussed in Chapter 4 of this Guide, in the section
entitled Reporting and Reimbursement for Acquisitions (see
page 17). If you need additional forms during the life of your
contract, contact your Contract Property Administrator.
EPA FORM 1730-1 for EPA Form 1730-1, Report of Nonexpendable Government
Contractor-Acquired Property Acquired by Contractor, is used to report the receipt
Property of accountable contractor-acquired property that is pur-
chased, leased or rented. The sample form on page 49
provides detailed instructions for completion of the form,
printed in italics. Additional information about completing
EPA Form 1730-1 is provided below.
EPA Account Number Questions sometimes arise about the EPA Account Number,
as requested on the form. The Account Number is recorded
on the first page of your basic contract, or on contract modifica-
tions if funds are involved, in the block entitled “Accounting and
Appropriation Data”. It is an accounting classification which
consists of ten combined letters and numerals. The Account
Number always begins with a numeral, followed by a combina-
tion of letters and numerals (examples are 5BJN69W000 and
6BHW33XOAR).
Reporting Component Parts The acquisition of such commodities as components, acces-
sories, improvements, alterations and add-ons that exceed the
accountable threshold must also be recorded on EPA Form
1730-1. When reporting these items, report the decal number
of the item being enhanced or altered so that its value may be
increased in the Agency’s records.
Reporting Leased Property The acquisition of leased property must be reported on EPA
Form 1730-1 if the acquisition value of the leased item exceeds
the accountable threshold and if the lease term exceeds two
Contractor’s Guide for Control of Government Property Page 47

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Chapter 7 Forms and Instructions
months. The following information must be reported on the
form: acquisition value, duration of lease, expiration date,
monthly rental or lease cost, and buy-out value.
Page 51 contains a sample SF-i 035 (reimbursement voucher),
with a supporting EPA Form 1730-i. These samples demon-
strate how property claims are itemized.
Paperwork Reduction Act The following information is provided in accordance with the 1986 Amend-
Notice ments to the Paperwork Reduction Act, effective July 1, 1988. Public report-
ing burden for this collection of information is estimated to average 15
minutes, including time for reviewing instructions, searching existing data
sources, gathering and maintaining the data needed, and completing and
reviewing the collected information. Send comments regarding the burden
estimate or any other aspect of this collection of information, including
suggestions for reducing this burden, to: Chief, Information Policy Branch,
PM-223, Environmental Protection Agency, 401 M Street, S.W.,
Washington, D.C. 20460; and to the Office of Information and Regulatory
Affairs, Office of Management and Budget, Washington, D.C. 20503.
EPA FORM 1700-7 for EPA Form 1700-7, Property Receipt and Transfer Document,
Government-Furnished is used to record the receipt of government-furnished property.
Property Normally, your Contract Property Administrator will complete
all information requested on the form and mail it to you for your
signature.
Verify that all information recorded on the form is correct.
Remember to check the condition of the property. If there are
any discrepancies with the form, notify your Contract Property
Administrator.
After verifying the information, fill in items 10 a - d on the bottom
portion of the form, in the section entitled Acknowledgment of
Receipt Outside EPA. The completed form should be mailed
back to your Contract Property Administrator. A sample form
is provided on page 50.
Page 48 Contractor’s Guide for Control of Government Property

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Report of Nonexpendabie Government
Property Acquired by Contractor
instructions to Contractor:
Contract Number i ort Number
Seffe q, lanato y You ass i this
contractor’s Voucher No. IDe S.
You assign this
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Nomenclature/Description (Include rnfg. name)
Date
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EXAMPLE:
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NOTE: if you have a large number of acquisitions,
you may use this form as a cover sheet Fill/n all
information on the form except the Item data, and
attach it to a copy of your acquisition llstlng.
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Oause Number of Contract
Clause or mod. # authorizing property
Contracting Officer’s Latter of Approval Dated:
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Chapter 7
Instructions: EPA Form 1700-7
EPA P.ns 1700.-7 ue—74) REPLACES EPA FO t77O t7 11—721 W lICH MAY B C USED UNTIL
SUPPLY II EXHAUSTED
Forms and Instructions
PROPERTY RECEIPT AND TRANSFER DOCUMENT I VOUCHER HO.
(Sea mnsOuctiona , z.ve,ae)
OF. AND AUTHORITY FOR. ACTION
3. NAME AND ADDRESS OF ISSUING STATION
DISPOSING
S. RECEIVING
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NO. DROPPED
A. ACCOUNTABLE B. DATE RECEIVED C. PROP. DOC.NO.
AREA NO.
AREA TO BE CREDITED
U, CUSTODIAL AREA TO RE CHARGED
OP CUSTODIAL OFFICER
C. SIGNATURE OF CUSTODIAL OFFICER
OF PROPERTY MANAGEMENT OFFICER
P. SIGNATURE OF PROPERTY MANAGEMENT OFFICER
SHIPPING DATA
7. RECEIVING DATA
OF LADING NO. B. DATE
A. CHECK ONE AND EXPLAIN ON REVERSE
El REJECTED rlSI.IORT [ 1OTHEPI
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ft.
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OF PII.SS C. POSTAGE F. TOTAL WEIGHT
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ETC. I Yotr contact person
COST )RJIyfl8tfl5 and address TI YLE D. DATE
7W. oV slgnee Date signed
POSTING DATA (TJ2.iI p bI.)
MEMO ASSET ACCOUNT COST ACCOUNTING
PAGE OF PAGES
Page 50
Contractor’s Guide for Control of Government Property

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Forms and Instructions
Sample Reimbursement Voucher with Property Costs
Chapter 7
The 1044*?g Info
Claim for Flelmbt
Ma o Coit Bern nts
)lrect Labo
)irect Mate
Travel
Communlo
Consultant
ubcontrac
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Total Amoo
ct Costs
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P.V. No. 2 (SuspensIon Notice No. 1, dated
tractlng Officer’s letter of app(Obal dated 4-5-88
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PUBLIC VOUCHER FOR PURCHASES AND
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CONTINUATION SHEET
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sement of Costs and Fees Under Cost-Plus Await Fee (C. AF) T}1 Contn I V.
CumulatIve
Amount
Claimed
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. . . . 20,000
. . . . 15,000
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9.
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Contractor’s Guide for Control of Government Property
Page 51

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Form Approved, OMR No.90000075. ExpIres 8-31-90.
- ‘i —ia ,w .., —. coreraclora
Contract Number Iflepod Number
— LMlt.d $tetes Exwkonmintl Protection Agency
L..IJI% shInqton, DC 20460
Reaort of Nonexpendable Government
‘ropertv Acoulred by Contractor
Instructions to Coidrictor
6a-W8 .0126 12
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2 J 30-88
, ..ontrtctOIS Name w,d Where Property
Phtiio& Locatad
a) Submit od lnai to Property Administrator.
b) A copy olthls report Must be attached to voucher submitted to Financial
Managemerl DMsIon to support claim for reimbursement.
DYNA TREND INCORPORATED
21 CabotRoad
Wobum, Massachusetts 01801
Usi below each artlols of
— nnexoendable pmperty
Data
ftoquirsd
Manulecturer’s
Mod.I
Number
Manufacturer’s
5 j
Number
EPA
O s opi
Num
EPA
P ounl
P+.amb
Contractor’s
PC Number to
Ve r idor/Mf 9
Unit Cost
Q!Y Nm.nc(atum/Ds,alptlon (indud. mfg. name)
1 Compuer ,pesson& poitsbiele.ptop- Tandy
1 Samples; air, constanflowlrllthskip-AfldOXS0IY
I Monitor, dust - GC A
1 Meter, combustible gas with accessories - MSA
I Computes; personal- IBM
$3,500 lnltIoJ acquisition cost
1 year lease e ires 11-30-89
$2SOIrnonth, straight lease no credits
TOTAL
NOTE: This sani pie Includes a sans/tWo item
and a leased item
11-12-88
11-1-88
11-10-88
11-2-88
11-1-88
123-1234
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260
60
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543
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098761
098760
098768
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7ABC33XOAR 88-121
7ABC33XQAR 88-118
7ABC33XOAR 88-110
7BC33XOAR 88-102
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1,700
1,800
1,050
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punishable by fin, or Imprisonment or both under applicable law.
EPA Satin 1730-1 (Rev. 9.58) Previous editions e obsolete.
t lwns arid Property
Contract Pre#yAdministrato(
Facilities Management and SeMces OMsion
Environmental Protection Agency, MD-36
Reseamh T anØe Pa N.C. 2fl11
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sues Number of Contract
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GLOSSARY
Abandonment Leaving government-owned property in a non-federal location
following expiration of a contract, or following a determination
that the item is no longer required for use on the contract.
Abandonment may be authorized by the Government if no
other alternative is available for disposal due to the item’s low
value or condition as long as the property is free from
contamination.
Accountable Personal Nonexpendable personal property with an acquisition cost of
Property $1000 or more, and sensitive items with an acquisition cost of
$300 or more.
Cannibalization The removal of serviceable components from otherwise unser-
viceable government property. Authorization is required before
government property may be cannibalized.
Component Part Nonexpendable property which is installed or affixed to an item
of accountable property. It must be integral to the functioning
of the main unit and not have the capacity to stand alone.
Examples include: a memory board for a computer and a
probe for a photoionizer.
Condition Codes Appraisals of the current condition of government accountable
property through the assignment of designated codes. For
example, condition code “1” refers to unused property in good
condition. See page 61 for the list of condition codes.
Contaminated Property Equipment/supplies that have been exposed to toxic or radio-
active materials, chemicals or other waste products which
render them unsafe for use.
Contract Modification A negotiated or unilateral change in the basic contract that
alters funding, scope of work, personnel, government property
authorizations, or any other terms of the basic contract.
Contractor’s Guide for Control of Government Property Page 53

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Glossary
Contractor-Acquired Property purchased or otherwise provided by the contractor
Property using contract funds, and reportable as government property.
Customer Supply Center A supply operation maintained by the General Services Admin-
istration (GSA) for the Government and its authorized contrac-
tors. The Customer Supply Center is used to procure small
quantity orders of supply items. A contractor may be author-
ized by the Contracting Officer to use this source of supply.
Decals Identifying tags designed by EPA to identify Agency property.
Decals are affixed to accountable property and display the
specific numbers assigned to individual items of government
property. Decals may identify a specific class of property, such
as “Superfund”.
Delivery Order An order for delivery by the contractor of stated goods or ser-
vices pursuant to the terms of an indefinite quantity contract.
Disposition The sale, transfer (with or without the exchange of funds),
donation, destruction, or abandonment of property.
Excess Property Government property that is not required for immediate or
foreseeable use.
Expendable Property Supplies and materials that are consumed or expended
routinely, that lose their identity under contract performance;
such as pens, pencils and typewriter ribbons.
Facilities Property used in accordance with terms of the contract for
production, maintenance, research, development, or testing.
The term does not include material, special test equipment,
special tooling, or Agency-peculiar property, but it does in-
clude plant equipment and real property.
FEDSTRIP An acronym (Federal Standard Requisitioning and Issue Pro-
cedures) referring to a procedure used by the Government and
its authorized contractors to procure goods from the General
Page 54 Contractor’s Guide for Control of Government Property

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Glossary
Services Administration (GSA). A contractor may be author-
ized by the Contracting Officer to use this source of supply.
Follow-On Contract A contract that is re-competed or renewed and awarded to the
same or a different contractor.
Government-Furnished Property in the possession of or acquired directly by the
Property Government, and subsequently delivered or otherwise made
available to the contractor.
Government Property All real and/or personal property owned by, or leased to the
Government under the terms of a contract. Government prop-
erty includes government-furnished and contractor-acquired
property.
Hazard-Free Certification A certification stating an item(s) is free from contamination. It
is submitted when government property is no longer required
at the contractor’s facility or upon conclusion of the contract.
Leased Property Property that is either acquired by the contractor or the
Government under a lease arrangement.
Liability The degree of a contractor’s obligation to the Government for
contractor inventory.
Material Personal property that may be incorporated into or attached
to an item, or that may be consumed or expended in perform-
ing a contract.
Materiel Items that are generally referred to as supplies, material,
apparatus, and equipment.
Modification A negotiated or unilateral change in the basic contract that
alters funding, scope of work, personnel, government property
authorizations, or any other terms of the basic contract.
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Glossary
Nonexpendable Property Personal property which is durable with an expected useful life
of one or more years, is complete in itself, and does not lose
its identity or become a component part of another item.
Non-Profit Organization Any corporation, foundation, trust, educational or other insti-
tution recognized by EPA and referenced in the contract as
operated for scientific or educational purposes, not organized
for profit, and not part of the net earnings of another corpora-
tion which inures to the profit of any private shareholder or
individual.
Personal Property All government property, excluding real property and software,
which is either furnished by the Government or acquired with
contract funds.
Physical Inventory A wall-to-wall sighting and recording of all equipment items
within a certain area. The types of inventories are start-up,
annual, special and final.
Precious Metals- Uncommon and highly valuable metals characterized by their
superior resistance to corrosion and oxidation, such as
platinum and gold.
Property Both real and personal. It includes facilities, supplies and
material, special tooling, special test equipment, furniture,
office equipment, ADP hardware (but not software, which is
considered to be information rather than property) and
Agency-peculiar property.
Property Control System Identifies a contractor’s internal management program encom-
passing the protection, preservation, accounting for, and
control of government property from its acquisition through
disposal.
Property Management The overall responsibility required for the management,
acquisition, utilization and disposal of personal property.
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Glossary
Prototype Property Property that is unique to the Agency’s mission, which is
designed by EPA and built by a contractor. Prototype property
is the first of its kind and is built when the decision is made that
improvements and/or alterations are necessary during a test
phase to assure the item will function as designed.
Real Property Bu dings, grounds, improvements, structures, and features
permanently installed in, or attached to, facilities.
Salvage Property that has no reasonable prospect of sale or use as
serviceable property without major repairs because of its worn,
damaged, deteriorated, or incomplete condition or its special-
ized nature. While salvage has no reasonable prospect of sale
or use without major repairs, it has some value in excess of its
scrap value.
Scrap Property that has no reasonable prospect of being sold except
for the recovery value of its basic material content.
Screening The examination of excess property by government or con-
tractor employees to determine its usefulness. A “screening
pass” is issued by the EPA Contract Property Administrator to
contractor personnel, granting access to GSA holding areas.
Sensitive Item Items of personaL property (supplies and equipment) that are
highly desirable and easily converted to personal use; these
items are subject to additional controls.
Special Test Equipment Units that are engineered, designed, fabricated or modified to
accomplish special purpose testing. Special test equipment
consists of items or assemblies of equipment that are intercon-
nected and interdependent, becoming a new functional entity
for special testing purposes.
Start-Up Inventory Physical inventory of GFP performed shortly after contract
award and reported to the Contract Property Administrator.
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Glossary
Stock Record A perpetual inventory that is maintained for supply and materiel
items, and shows by nomenclature the quantities of each item,
issues, and balance on hand.
Subcontractor An organization responsible directly to the prime contractor.
Assists the contractor in carrying out the scope of work.
Supply Item A category of government property that is of a low dollar value
and generally has a life expectancy of less than a year.
Surplus Property Government-owned personal property classified previously as
excess but not requested for transfer by any federal agency;
thus, it is available for donation or sale.
Task Order A negotiated “mini-contract” issued under a basic ordering
agreement (BOA) type contract.
Technical Directive A written order by the Project Officer under a cost type con-
tract that redirects or shifts emphasis between work areas.
The Technical Directive Clause precludes technical directives
that impact cost, fee, or schedule. Use or acquisition of ac-
countable property required under a technical directive must
be authorized in the basic contract or a contract modification.
Title The legal right to claim, control, and dispose of property as a
result of a purchase.
Trade-In The exchange of an item of property for a similar replacement
whereby the vendor agrees to apply the value of the replaced
item toward the purchase price of the new item.
Unauthorized Property Government-furnished or contractor-acquired property that is
not authorized by an appropriate contract clause and/or
modification and is in the possession of a contractor.
Unrequired Property Government-furnished property or property acquired by the
contractor during the life of the contract that is no longer
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Glossary
needed to perform the scope of work under the contract for
which it is authorized.
Voucher Document prepared by the contractor for reimbursement of
appropriate expenses incurred while carrying out the scope of
work.
Work Assignment A written order by the Contracting Officer under a term con-
tract (level of effort) which instructs the contractor to perform
a special task. Work is performed only if covered by a work
assignment. Use or acquisition of accountable property under
a work assignment must be authorized in the basic contract or
a subsequent modification.
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Glossary
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APPENDIX A
CONDITION CODES
Condition Code Brief Definition Expanded Definition
1 Unused-good Unused property that is usable without repairs and identical or interchange-
able with new items from normal supply sources.
2 Unused-fair Unused property that is usable without repairs, but is deteriorated or
damaged to the extent that utility is somewhat impaired.
3 Unused-poor Unused property that is usable without repairs, but is considerably
deteriorated or damaged. Enough utility remains to classify the property bet-
ter than salvage.
4 Used-good Used property that is usable without repair and most of its useful life remains.
5 Used-fair Used property that is usable without repairs, but is somewhat worn or
deteriorated and may soon require repairs.
6 Used-poor Used property that may be used without repairs, but is considerably worn
or deteriorated to the degree that remaining utility is limited or major repairs
will soon be required.
7 Repairs required- Required repairs are minor and should not exceed 15 percent of original ac-
good quisition cost.
8 Repairs required- Required repairs are considerable and are estimated to range from 16 per-
fair cent to 40 percent of original acquisition cost.
9 Repairs required- Required repairs are major because property is badly damaged, worn, or
poor deteriorated, and are estimated to range from 41 percent to 65 percent of
original acquisition cost.
X Salvage Property has some value in excess of its basic material content, but repair
or rehabilitation to use for the originally intended purpose is clearly imprac-
tical. Repair for any use would exceed 65 percent of the original acquisition
cost.
S Scrap Material that has no value except for its basic material content.
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APPENDIX B
CONTRACT PROPERTY ADMINISTRATOR ADDRESSES
Contract Property Administrator
Facilities Management and Services Division
Environmental Protection Agency
PM-215
Washington, D.C. 20460
(202) 475-7086
Contract Property Administrator
Facilities Management and Services Division
Environmental Protection Agency
MD-36
Research Triangle Park, North Carolina 27711
(919) 541-4352
Contract Property Administrator
Facilities Management and Services Division
Environmental Protection Agency
26 W. Martin Luther King Drive
Room 293
Cincinnati, Ohio 45268
(513) 569-7262
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INDEX
Cannibalization, 33
A
Abandonment Installed property, 20
Defined, 53 Start-up, 7
Procedures, 32
Account Number B
Description, 47 Boats, 44
Maintained in records, 28
C
Superfund, 39
Accountable property
Defined, Calibration, 11
Acquisitions Cannibalization, 33
Acquiring CAP, 16 Compliance reviews, 27
Acquiring GFP, 15 Component parts
Authorization, 6, 15 Defined, 53
Component rts, 19 Reporting, 19, 24, 47
Excess property, 16 Condition codes
Fabricating equipment, 20 Defined, 53
GSA supply sources, 16 Listed, 61
Leased property, 19, Reporting, 8, 28, 35
Non-profit/educational, 42 Contaminated property
Property control system requirements, 10 Defined, 53
Reimbursement, 20, 51 - 52 See also Hazard-free certification
Reporting requirements, 17, 47 -50 Procedures, 33
Subcontractors, 17, 19 Contract clauses
Superfund, 39 Contractor-acquired property clause, 8
Unauthorized property, 15 Designation of Property Administrator, 3, 8
Vehicles, Government-furnished property clause, 7
Annual inventory, 24 - 25 Residual property clause, 7
Authorization Contract close-out
Abandonment, 32 Disposal options, 37
Acquisitions, 15 Final inventory, 35
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Index
Leased property, 35-36 Decals
Property control system requirements, 13 Non-Superfund, 21
Contract modification Superfund, 39
Defined, 53 Decontamination, 33
Contract Property Administrator’s role, 2 Delivery order
Contract start-up Defined, 54
Authorization, 7 Designation of Property Administrator, 3, 8
Property control system, 9 Destruction
Start-up inventory, 8 See Abandonment
Contracting Officer’s role, 2, 4 Discrepancies in shipments, 18- 19
Contractor liability, 6, 14, 27 Disposal
Contractor responsibility Abandonment, 32
Acquisitions, 6 Disposition instructions, 36
Contract requirements, 5 Donation, 32
Decontamination, 6 Excess property, 32
Disposition of property, 36 Instafled property, 20
Maintenance of official records, 5 Options, 37
Prime contact, 5 Property control system requirements, 13
Property control, 6 Superfund property, 40
Subcontractor property, 6 Vehicles, 46
Contractor-acquired property Disposition
Acquiring CAP, 16 Contract close-out, 36
Defined, 54 Defined, 54
GSA supply sources, 16 Excess property, 32
Receipt, 17 Donation, 32
Contractor-acquired property clause, 8
Customer supply centers, 16 E
D Educational institutions, 42
EPA Account Number
Damaged property See Account Number
Liability, 6 Excess property
Procedures, 26 Abandonment, 32
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Index
Acquisition of, 16 Defined, 55
Defined, 54 Receipt, 18
Disposal options, 32 Transfer between multiple contracts, 16
Donation, 32 Government-furnished property clause, 7
Report of excess, 31 GSA supply sources, 16
Screeners identification card, 16
Exchanges, 30 H
Expendable property
Hazard-free certification
Defined, 54
Defined, 55
Records, 28
Donated property, 33
Final inventory, 35
F
Fabricating equipment, 20 I
Facilities
Installed property
Defined, 54
Non-Superfund, 20
FEDSTRIP, 16
Superfund, 39 -40
Final inventory, 35
Instructions
Follow-on contract
See Forms and instructions
Defined, 55
International organizations, 41
Inventories, 8, 36
Inventory
Foreign governments, 41
Annual, 24
Forms and instructions
Final, 35
Reporting CAP, 47
Follow-on contract, 8, 36
Reporting GFP, 48
Overage procedures, 25
See also Reporting requirements
Property control system requirements, 12
Reconciliation, 9, 25
G
Shortage procedures, 25
Government property Start-up, 8
Defined, 55 Termination, 36
Government-furnished property
Acquiring GFP, 15
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Index
Procedures, 42
J
Nonexpendable property
Justification Defined, 56
See Property justification Records, 28
L o
Leased property Official property records, 5, 7
Authorization, 16 On-site contractors, 41
Contract close-out, 35-36
Credits, 19, 36
Reporting requirements, 47
Termination of lease, 19 Paperwork Reduction Act notice, 48
Personal property
Uability for property
Defined, 56
See Contractor liability
Personal property records
Expendable supplies and materials, 28
M
General, 27
Maintenance, 11 Nonexpendable property, 28
Material Physical inventory
Defined, 55 Defined, 56
Materiel See Inventory
Defined, Precious metals
Missing property Defined, 56
Uability, 6 Procedures, 23
Procedures, 26 Prime contact, 5
Movement Project Officer’s role, 2 -3
Property control system requirements, 10 Prope
Return of property, 30, 36 Defined, 56
Property consumption, 11
N Property control system
Defined, 56
Non-profit organizations
Disapproval, 6, 14
Defined, 56
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Index
Elements, 9 - 13
EPA review of system, 14
Property justification, 16, 25
Prototype equipment
Construction, 20
Defined, 57
Purchase of property
See Acquisitions
R
Real property, 29
Receipt of property
Contractor-acquired property, 17, 47 -49
Discrepancies in shipments, 18 - 19
Government-furnished property, 18, 48, 50
Property control system requirements, 10
ReconcUlation
Annual inventory, 25
Start-up inventory, 9
Records
Basic information, 27
Compliance reviews, 27
Expendable supplies and materials, 29
Non-Superfund retention, 27
Nonexpendable property, 28
Personal property, 27
Property control system requirements, 10
Real property, 29
Supertund retention, 40
Recovery of precious metals, 23
Reimbursement for acquisitions, 20, 51 - 52
Rented property
See Leased property
Reporting requirements
Acquisitions, 17 - 20, 47 - 50
Annual inventory, 24
Excess, 31
Final inventory, 35
See also Forms and instructions
Missing, stolen or damaged, 26
Property control system, 13
Start-up inventory, 8
Residual property clause, 7
Responsibility for property
See Contractor responsibility
Return of property, 30, 36
S
Salvage
Scrap
Defined, 57
Defined, 57
Disposal option, 37
Screeners identification card, 16
Sensitive items, 23
Software, 1
Special test equipment
Defined, 57
Fabrication, 20
Identification, 24
Start-up inventory, 8
Stolen property
Liability, 6
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Index
On-site contractors, 41
Procedures, 26
Storage
Procedures, 30
Property control system requirements, 10
Subcontractors
Acquisitions, 17, 19
Final inventory, 36
Prime contractor responsibility, 6
Property control system requIrements, 12
ReportIng, 17
Start-up inventory, 9
Superfund, 39
Surplus property
Defined, 58
U
Unauthorized property, 7, 15, 18
Unrequired property
See Excess property
Utilization
Multiple contracts, 8
Property control system requirements, 11
V
Vehides, 43
Vouchers
See Reimbursement for acquisitions
w
T
Title
Boats, 44
Non-profit/educational, 43
Trailers, 44
Vehicles, 43
Trade-ins
Work assignment
Defined, 59
Defined, 58
Procedures, 30
Trailers, 44
Transfer between multiple contracts, 16
Transfers
See Government-furnished property
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