Acquisition regulations: General property, plant, and equipment; contractor reporting requirements,

[Federal Register: July 22, 1999 (Volume 64, Number 140)]

[Proposed Rules]

[Page 39456-39460]

From the Federal Register Online via GPO Access [wais.access.gpo.gov]

[DOCID:fr22jy99-26]

DEPARTMENT OF DEFENSE

48 CFR Parts 245 and 252

[DFARS Case 99-D019]

Defense Federal Acquisition Regulation Supplement; General Property, Plant, and Equipment

AGENCY: Department of Defense (DoD).

ACTION: Advance notice of proposed rulemaking.

SUMMARY: The Director of Defense Procurement is soliciting comments from Government and industry personnel on contemplated revisions to the Defense Federal Acquisition Regulation Supplement (DFARS) to obtain data that will enable DoD to comply with the financial reporting requirements of the Chief Financial Officer's Act. The DFARS revisions would require contractors to furnish information on other real property, industrial plant equipment, other plant equipment, and software acquired or produced for performance of a cost-reimbursement or time-and-material contract. The reporting requirement is limited to reportable items or systems having an acquisition cost of $100,000 or more.

DATES: Interested parties should submit written comments to the address shown below no later than September 7, 1999. Electronically submitted comments are preferred.

ADDRESSES: Interested parties should submit written comments to: Deputy Director, Major Policy Initiatives, Room 3E144, the Pentagon, Washington, DC 20301-3060, ATTN: Ms. Angelena Moy,

[[Page 39457]]

OUSD (A&T)/DDP. Submit electronic comments to moyac@acq.osd.mil. Please cite DFARS Case 99-D019 on all related correspondence.

FOR FURTHER INFORMATION CONTACT: Ms. Angelena Moy, (703), 695-1097/1098 or moyac@acq.osd.mil.

SUPPLEMENTARY INFORMATION:

1. Background

   DoD must improve the reliability of agency-level financial reports to comply with the requirements of the Chief Financial Officer's Act (Pub. L. 101-576). The proposed DFARS revisions will enable DoD to more accurately determine the current value of Government property that was originally acquired or produced by a contractor under a cost- reimbursement or time-and-materials contract.

2. DD Form 1662-S, General Property, Plant, and Equipment in the Possession of Contractors

   The proposed DFARS revisions contain a new clause that specifies requirements for contractors to furnish information using the following form. DoD will seek Office of Management and Budget approval for use of the new form in accordance with the Paperwork Reduction Act (44 U.S.C. 3501, et seq.).

   BILLING CODE 5000-04-M

   [[Page 39458]]

   [GRAPHIC] [TIFF OMITTED] TP22JY99.001

   [[Page 39459]]

   [GRAPHIC] [TIFF OMITTED] TP22JY99.002

   BILLING CODE 5000-04-C

   [[Page 39460]]

   List of Subjects in 48 CFR Parts 245 and 252

   Government procurement. Michele P. Peterson, Executive Editor, Defense Acquisition Regulations Council.

   Therefore, DoD proposes to amend 48 CFR Parts 245 and 252 as follows:

   1. The authority citation for 48 CFR Parts 245 and 252 continues to read as follows:

      Authority: 41 U.S.C. 421 and 48 CFR Chapter 1.

      PART 245--GOVERNMENT PROPERTY

   2. Amend section 245.505-14 by adding paragraph (b) to read as follows:

      245.505-14 Reports of Government property.

      * * * * *

      (b) Use the clause at 252.245-XXX, Supplemental Property Report- Cost-Reimbursement and Time-and-Materials Contracts, in cost- reimbursement and time-and-materials contracts that include the clause at 252.245-7001, Reports of Government Property.

      PART 252--SOLICITATION PROVISIONS AND CONTRACT CLAUSES

   3. Add section 252.245-XXX to read as follows:

      252.245-7XXX Supplemental Property Report-Cost-Reimbursement and Time- and-Material Contracts.

      As prescribed in 245.505-14(b), use the following clause:

      Supplemental Property Report-Cost-Reimbursement and Time-and-Materials Contracts (XXX 1999)

      (a) Definition. As used in this clause--

      Agency-peculiar property means military property and includes end items and integral components of military weapons systems, along with the related peculiar support equipment that is not readily available as a commercial item.

      Commercial computer software means software developed or regularly used for nongovernmental purposes that--

      (1) Has been sold, leased, or licensed to the public;

      (2) Has been offered for sale, lease, or license to the public;

      (3) Has not been offered, sold, leased, or licensed to the public but will be available for commercial sale, lease, or license in time to satisfy the delivery requirements of this contract; or

      (4) Satisfies a criterion expressed in paragraph (1), (2), or (3) of this definition and would require only minor modification to meet the requirements of this contract.

      General property, plant, and equipment means land, other real property, industrial plant equipment, other plant equipment, and software. The term does not include special tooling, special test equipment, agency-peculiar property, or material.

      Industrial plant equipment (IPE) means plant equipment in Federal stock group 34 with an acquisition cost of $15,000 or more used for cutting, abrading, grinding, shaping, forming, joining, heating, treating, or otherwise altering the physical properties of materials, components, or end items entailed in manufacturing, maintenance, supply, processing, assembly, or research and development operations. IPE is further identified in AR 700-43/ NAVSUP PUB 5009/AFM 78-9/DLAM 4215.1, Management of Defense-Owned Industrial Plant Equipment.

      Other plant equipment (OPE) means plant equipment regardless of dollar value, used in or in conjunction with the manufacture of components or end items relative to maintenance, supply, processing, assembly, or research and development operations. OPE excludes equipment categorized as IPE.

      Software means computer software, including commercial computer software.

      (b) Supplemental information-general property, plant, and equipment (GPP&E). The Contractor shall furnish the information required by DD Form 1662-S, General Property, Plant, and Equipment in the Possession of Contractors, for each GPP&E item or system to which the Government has title under a cost-reimbursement or time- and-materials contract that--

      (1) Was acquired or produced by the Contractor for performance of this contract;

      (2) Has an estimated useful life of 2 or more years;

      (3) Has an acquisition cost of $100,000 or more that was allocated to this contract as a direct cost; and

      (4) Is in the Contractor's or a subcontractor's possession as of September 30 of the current year or, for contracts completed or terminated prior to or during the current fiscal year, on the date the contract was completed or terminated.

      (c) Source data. The Contractor shall extract acquisition cost information from the Contractor's financial or cost accounting systems.

      (d) Reporting and submission requirements. The Contractor shall--

      (1) Prepare a separate DD Form 1662-S for each contract under which GPP&E items or systems are accountable;

      (2) Submit the DD Form 1662-S to the cognizant Government property administrator within 30 days following completion of the reporting year; and

      (3) For contracts completed or terminated in their entirety prior to September 30 of the reporting year, complete a DD Form 1662-S to report property in the Contractor's or a subcontractor,s possession as of the date of contract completion or termination. The Contractor shall submit the form to the cognizant Government property administrator within 30 days following contract completion or termination.

      (End of clause)

      [FR Doc. 99-18589Filed7-21-99; 8:45 am]

      BILLING CODE 5000-04-M