Recently proposed FAR and DFAR rules changes, etc.

1. Recently proposed FAR and DFAR rules changes, etc. Aerospace Industries Association Property Management Committee Reported by: Alex N. Barenblitt, CPPA AAI Corporation/Textron

2. DoD Instruction 5000.64 • Accountability and Management of DoD-Owned Equipment and Other Accountable Property • Reissues Reference (a) to establish accountability and management policy for tangible DoD-owned equipment and other accountable property, in accordance with the authority outlined in Reference (b). • 1.2. Establishes policy and procedures to comply with References (c) and (d); outlines requirements that reflect both the accounting perspective, which supports the documentation of life-cycle events and transactions, and the accountability perspective, which supports the lifecycle management of assets. • 1.3. Provides policy and procedures for DoD-owned equipment and other accountable property; assists DoD property managers, accounting and financial managers, and other officials in understanding their roles and responsibilities.

3. The UID Registry • Currently you must register all GFP/GFE that is serialized or greater in value than $5,000 in UID Registry via the Wide Area Workflow (WAWF) • Proposed rules changes remove the $5,000 threshold • All ST/STE will be serialized, requiring UID • Virtual UII’s must also be registered • GFP Module (originally proposed “HUB”) is for non-UII parts • Government wants Registry visibility to all GFP, regardless of cost to Contractors to implement • Cost/Benefit Analysis does not seem to be present • Reliance on Contractors for reporting does not seem to be present (formerly DD1662’s) • Multiple Property systems – no consistent interface among major ERP/Asset Management systems • Reference DFARS Case 2009-D043

4. UID Impacts • Impact on Repair on Repairables (Also known as Maintenance, Repair and Overhaul – MRO) is likely to be significant • Parts returning for repair may not yet be registered but will need to be prior to returning repaired item • Subassemblies and “children” of “Parent” parts may also need to be registered • Parts built by other OEM’s may be registered, but become part of your delivered system (Which CAGE Code is used? Which DODAAC? …) • Property Type has returned (although when DD1662’s were terminated, Property Type was to be eliminated) • Agency Peculiar • Special Tooling (Government Title Only) • Special Test Equipment • Government Material (Furnished) • Government Material (Acquired)

5. Traceability of Items with WAWF and IUID Registry

6. Loss of Government Property • Reference FAR Case 2010-009 • Clarifies reporting, reutilization, and disposal of Government property and the contractor requirements under the Government property clause • Clarifies that FAR Part 45 and FAR Part 52.245-1 does not apply to Government Property “incidental to the place of performance at a Government site or installation” • Adds definitions of “loss of Government Property” and “unit acquisition cost” • Moves the definition of “surplus property” to Part 2 • Revises language references in Public Comments from Government and Contractors, exchanges (such as with AIA), and questions received for FAR Case 2008-011

7. DFARS Proposed Rule on Responsibility and Liability for Government Property • Reference DFARS Case 2010-D018 • Extends the FAR Government self-insurance policy to Fixed Price contracts awarded on a basis other than a submission of cost pricing data. • Contractors will not be held liable for loss of Government Property under the following contract types: • Cost-reimbursement • Time and materials • Labor Hour • Fixed Price (negotiated on a basis other than cost-pricing data) • Eliminates use of Alternate 1 which requires Contractors to assume that risk

8. Contractor Self Assessments • Guidance from Tom Ruckdaschel • PMSA’s should be less mechanical, rely on good CSA’s for day-to-day operations • Updated PMSA Guidebook is in development • DoD/DCMA encourages more robust Contractor Self Assessments than PMSA – Early Warning System

9. Challenges (Tom Ruckdaschel) • New focus on contractor property systems as a business system • Timeliness • Accuracy • Reliability • CONSISTENCY • Requires • Understanding root causes; implement preventive actions • Finding the right remedy for inadequate systems; and • Documentation, documentation, documentation

10. Helpful sites (from Tom Ruckdaschel) • Review DFARS and FAR proposed and interim rules • Change Notices:http://www.acq.osd.mil/dpap/dars/change_notices.html • Submission input of public comments: http://www.acq.osd.mil/dpap/dars/out_for_public_comment.html • View public comments on proposed & interim rules • DFARS rules: http://www.acq.osd.mil/dpap/dars/out_for_public_comment.html • FAR rules: www.regulations.gov • View status of open cases • DFARS rules: http://www.acq.osd.mil/dpap/dars/case_status.html • FAR rules: http://www.acq.osd.mil/dpap/dars/far_case_status.html

11. NASA Regulations • Presentation by Mike Showers, NASA Contract Property Manager • 1852.245-70 Contractor Requests for Government Provided Equipment • Limited to equipment acquisition only • 1852.245-74 Identification and Marking of Government Equipment • Items may be marked using commercial techniques if they are durable enough to survive the item • 1852.245-75 Property Management Changes • Requires submission of reports to the PA rather than the IPO • 1852.245-78 Physical Inventory of Capital Personal Property • Requires submission of reports to the PA rather than the IPO • 1852.245-76 List of GFP • Used with FAR 52.245-1 • 1852.245-77 List of GFP • Used with FAR 52.245-2