DEPARTMENT OF THE AIR FORCE

Transcription

1 DEPARTMENT OF THE AIR FORCE HEADQUARTERS UNITED STATES AIR FORCE WASHINGTON DC MEMORANDUM FOR DISTRIBUTION C MAJCOMs/FOAs/DRUs FROM: HQ USAF/A Air Force Pentagon Washington, DC AFI23-119_AFGM SUBJECT: Air Force Guidance Memorandum, to Air Force Instruction (AFI) , Exchange, Sale, or Temporary Custody of Non-excess Personal Property 6 JUNE 2017 By Order of the Secretary of the Air Force, this Air Force Guidance Memorandum (AFGM) immediately implements changes to AFI , Exchange, Sale, or Temporary Custody of Non-excess Personal Property. To the extent its directions are inconsistent with other Air Force publications; the information herein prevails, in accordance with AFI , Publications and Forms Management. Compliance with this memorandum is mandatory. This AFGM implements AFPD 23-1, Supply Chain Materiel Management, by providing guidance and procedures for making NonExcess personal property available to programs authorized by legislation Requirements contained in this AFGM are derived from the Federal Property and Administrative Services Act of 1949, as amended, Title 40, Public Buildings, Property, and Works, United States Code, Section 101, Defense Federal Acquisition Regulation (DFARS) Procedures, Guidance Information (PGI), Federal Acquisition Regulation (FAR) Part , Government Property, FAR Part Contract Clauses, Department of Defense (DoDM) Manual , DoD Supply Chain Material Management Procedures, DoD Instruction (DoDI) , Accountability and Management of DoD Equipment and Other Accountable Property, DoDI , Accountability and Management of Government Contract Property, AFI , Nuclear Related-Material Management, AFI , Vehicle Management. This AFGM incorporates Section F and Attachment 4 that provides guidance for managing and accounting for Government Furnished Property (GFP) to Acquisition and Sustainment Programs authorized by legislation. Also, this instruction includes agreements that provide Government Furnished Materiel (GFM) under a Federal Acquisition Regulation (FAR) government contract, grant, or cooperative agreement. It applies to all Air Force activities and the Air National Guard and US Air Force Reserve units.

2 This memorandum is void one year from the date of issuance, or upon publication of an Interim Change or rewrite of the affected publication, whichever is earlier. JOHN B. COOPER Lieutenant General, USAF DCS/Logistics, Engineering & Force Protection Attachment: Guidance Changes: Section F- Management of Government Furnished Equipment (GFE) Attachment 4 - (Applies to Section F) Process Guide For Accountability of Government Furnished Property (GFP)

3 OPR: AF/A4L (Brig Gen Walter J. Lindsley) Certified by: SAF/AQ (Mr. Lawrence S. Kingsley) Guidance Changes Section F Management of Government-Furnished Property (GFP) (Added) 1. Program Objective. This attachment provides guidance for the management of Government Furnished Property (GFP) owned by the Air Force. (Added) 2. Responsibilities (Added) 2.1. MAJCOM/A4 will: (Added) Develop procedures to supplement this GM, as required. (Added) Ensure steps in the GFP Process Guide are followed. (Added) Ensure GFP requests for contractors' on base services contracts and contracts providing operations and maintenance support are supported by the Logistics Readiness Squadron (LRS). Contractors providing depot level support on a base installation will utilize the Loan Control Officer (LCO) process IAW Attachment 4. (Added) Ensure Allowance Source Code (ASC) 051E, unless another approved ASC applies, and Special Allowance Flag X is assigned in the Air Force Management Equipment System (AFEMS). (Added) Ensure the due back date is annotated in the Master Jacket File and monitored by the Equipment Accountability Element (EAE). (Added) Ensure the EAE monitors ASC 051E and Special Allowance Flag X requests and coordinates with the Requesting Activities on overdue loans. (Added) Ensure the EAE reviews all loans that are due back within 30 calendar days. (Added) Ensure the EAE reviews overdue loans on a monthly basis and provide status to the Requesting Activity s Point of Contact (POC). Notify the LRS/CC of overdue loans greater than 30 calendar days. The LRS/CC will contact the organization s CC to determine the status of the equipment. (Added) Ensure all vehicle requests are submitted for approval IAW AFI (Added) 3. AFMC/A4 will:

4 (Added) 3.1. Develop procedures for GFP loan requests to include the return of equipment provided by a MAJCOM. (Added) Designate Loan Control Officers (LCO) to execute, manage, and maintain oversight of all GFP loans. The LCO will maintain GFP Loan folder. The folder should include, as a minimum, the front page of the contract, GFP attachment, the approved loan request, and documentation when the item has returned to the Government. The folders will be maintained for 75 months after the return of the loan IAW Air Force Records Disposition Schedule (AFRDS). (Added) Ensure the LCO reconciles folders monthly with the Stock Control System and AFEMS. (Added) Ensure the LCO reviews all loans that are due back within 60 calendar days. (Added) Ensure the LCO reviews overdue loans on a monthly basis and provide status to the Requesting Activity s POC. (Added) Develop procedures to assist the LCO in the return or extension of overdue loans. Ensure the LCO provides notification to AFMC/A4 of overdue loans greater than 30 calendar days. (Added) 4. Requesting Activities will: (Added) 4.1. Ensure steps in the GFP Process Guide are followed. (Added) Submit requests for GFP IAW the GFP Process Guide for contractors not supported through LRS using the DOD Attachment IAW PGI (Added) When the authorization/approval is granted, submit an AFEMS Transaction Allowance Change Request (TACR) to request GFP under a base services contract with justification listing the contract numbers and expiration in order to gain proper authorization under (ASC) 051E. (Added) Ensure GFP is returned by the due back date or provide a contract modification. (Added) 5. Government Furnished Property (GFP) Provided By a MAJCOM (Added) 5.1. MAJCOMs may direct the temporary loan of in-use items to support requirements, outside of base facilities, per the request of AFMC/A4. (Added) 5.2. The designated AFMC representative will coordinate loan request with the appropriate MAJCOM Command Equipment Management Office (CEMO) for approval or disapproval. Information will include Contractor s Department of Defense Activity Address Code (DoDAAC), contract number, NSN, QTY, expiration date of loan and TAC code.

5 (Added) 5.3. MAJCOM CEMO will coordinate approval/disapproval with appropriate Weapons System Manager. The CEMO will respond to the requesting activity in regards to loan approval/disapproval with-in 3 business days. (Added) 5.4. The lending MAJCOM CEMO will direct the EAE of the lending base to establish an authorized/in-use detail record. (Added) The losing organization supporting EAE will transfer the equipment from the original detail to the established GFP detail. (Added) The EAE will establish an off line requisition and a DUO (TEX 7) on the original equipment losing detail to retain visibility over the loaned equipment, throughout the duration of the loan. (Added) The EAE will turn-in the items to stock (utilize proper TEX 8 code to hold for one transaction) from the established GFP detail. (Added) The EAE will follow instructions provided by AFMC/A4. (Added) EAE will file all documentation and correspondence in the Tab C, Information File of the Master Jacket File IAW AFMAN (Added) 5.5. When the equipment is no longer needed, follow procedures provided by AFMC when returning loaned equipment. (Added) 6. Loan Criteria. (Added) 6.1. The following criteria must be met for a loan consideration: (Added) The equipment will be returned in the same condition as when the equipment was furnished by the government, unless specified in the GFP request. (Added) The equipment will be returned to the Government unless approved by the Item Manager. (Added) Loan records will be maintained in the Stock Control System and the loan accountability record will be maintained in AFEMS. (Added) Equipment is available to the wholesale Item Manager for redistribution. (Added) The GFP must be on a contract or Partnerships Agreement. (Added) Borrower must have a valid DoDAAC IAW AFI

6 (Added) 7. Loan Extensions. Loans can only be extended through a contract modification or Partnerships Agreement extension. A copy of the contract modification or agreement extension will be provided to the applicable LCO or EAE for GFP provided by the Item Manager or MAJCOM CEMO for base services contracts. (Replace) AF/A8P Force Programmer s determines excess operational aircraft and is identified in the Force Structure Worksheet. AF/A4LM screens the aircraft once the aircraft is approved for divestment IAW AFI (Replace) The reporting instruction for spares and support equipment in excess is IAW AFI and AFMAN (Added) 8. Exclusions. (Added) 8.1. Equipment in the National Defense Stockpile or the Defense Production Act inventory IAW US Code Title 50, Chapter 5, Subchapter III, Section 98, Appendix (Added) 8.2. Nuclear Regulatory Commission-controlled equipment unless the requirements IAW 41 CFR and other applicable regulations. (Added) 8.3. Property that is dangerous to public health or safety. (Added) 8.4. Weapons, Fire control equipment, and Nuclear ordnance. (Added) Terms (Added) Government Furnished Property (GFP) - Property in the possession of, or directly acquired by, the Government and subsequently furnished to the contractor (includes subcontractors and alternate locations) for performance of a contract. (IAW DoDI ). (Added) Contractor Acquired Property (CAP) - Any property acquired, fabricated, or otherwise provided by the contractor for performing a contract, and to which the Government has title. CAP that is subsequently delivered and accepted by the Government for use on the same or another contract is considered GFP. (Added) Government-Furnished Equipment (GFE) - Personal property that is functionally complete for its intended purpose, durable, and nonexpendable. Equipment generally has an expected service life of 2 years or more; is not intended for sale; does not ordinarily lose its identity or become a component part of another article when put into use; has been acquired or constructed with the intention of being used. (Added) Contract (Accountability and Management of DoD Equipment and Other Accountable Property, DoDI ) - Any enforceable agreement, including rental and lease agreements and purchase orders, between an agency and a business concern for the acquisition of property or services. (Replace) Lease (Replenishment Parts Purchase of Borrow Program, 10 U.S.C. 2320(d))

7 -An agreement to provide replenishment parts on a temporary basis to business concerns for the purpose of design replication. Also, referred to in DoDM V9 as bailment. The government retains legal title to such material even though the borrowing agency has possession during the stated period. Lessee provides payment as required by the legal authority cited in the lease. GLOSSARY OF REFERENCES AND SUPPORTING INFORMATION References (Replace) DoDM R, DoD Supply Chain Materiel Management Procedures, February 10, 2014 (Delete) DoDD , DoD Replenishment Parts Purchase or Borrow Program, April 13, 1987 (Replace) DoD M, Defense Materiel Disposition Manual, October 22, 2015 (Delete) DoD M, Security Assistance Management Manual, January 18, 2001 (Replace) DoDD , Withholding of Unclassified Technical Data From Public Disclosure, November 6, 1984 (IC 1 August ) (Replace) DoDI , DoD Technology Transfer (T2) Program, May 14, 1999 (Replace) DoD R, DoD Financial Management Regulation, Volume 4, November 13, 2015, and Volume 11A, July 29, 2015 (Replace) AFI , Defense Support of Civil Authorities, December 23, 2015 (Replace) AFI , Aerospace Vehicle Programming, Assignment, Distribution, Accounting, and Termination, May 30, 2013 (Replace) AFPD 23-1, Supply Chain Materiel Management, September 30, 2016 (Delete) AFPD 23-5, Reusing and Disposing of Materiel (Added) AFPD 63-3, Competition and Commercial Advocacy, December 1, 2005 (Added) AFI , Air Force Materiel Management, December 12, 2016 (Replace) AFI , Management of Government Property in Possession of the Air Force, October 29, 2013 (Delete) AFI , Retaining and Transferring Materiel (Delete) AFMAN , Volume 1, Part 1, Basic Air Force Supply Procedures

8 (Delete) AFMAN , Volume 6, Excess and Surplus Personal Property (Added) AFMAN , Materiel Management Procedures, December 14, 2016 (Delete) AFI , Air Force Competition and Commercial Advocacy (Replace) AFI , Leasing Non-Excess USAF Aircraft, Aircraft-Related Equipment and Other Personal Property to Non-Government Organizations, March 14, 2017 Administrative Changes to AFI , Exchange, Sale or Temporary Custody of Non-excess

9 Attachment 4 Process Guide For Accountability of Government Furnished Property (GFP) Process Owner: SAF/AQX/AQC, HAF/A4L Date: 1 May 17 Version: 2.0

10 Record of Changes. Record of Changes Version Effective Date Summary Jun 2015 Basic Document 2.0 XX May 2017 Version Update

11 1.0 Description. 1.1 This process guide provides References and Guidance and identifies the steps for properly accounting for Government Furnished Property (GFP) Government Furnished Property (GFP) is defined as property in the possession of or acquired by the Government and subsequently furnished to the Contractor in the performance of a contract. There are two types of GFP: Government Furnished Equipment (GFE) and Government Furnished Material (GFM) GFE consists of property, special tooling, or special test property provided to the contractor for activities such as research and development, acquisition, repair, maintenance, overhaul, or modification GFM is another form of Government property that is provided to the contractor in the performance of a contract. GFM consists of raw titanium, nuts, bolts, washers, screws, spares, and reparable assets. GFM does not include property, special tooling, or test property and is consumed or expended by the contractor during the performance of the contract. NOTE: Contractor Acquired Property (CAP) becomes government property upon delivery and acceptance by the government. 2.0 Purpose and Scope. 2.1 This guide provides clear processes and guidance for the proper management and accountability of government property provided to the contractor. 2.2 This process guide defines the roles and responsibilities of each functional area and all stakeholders involved in the accountability process. 2.3 AFMC/A4 is the Central Point for providing and managing all AF property and government furnished property in the AF inventory; therefore this guide is applicable to all MAJCOMs, to include Air Force Space Command (AFSPC), Program Executive Offices (PEOs), and AFMC centers requiring property be furnished to a contractor for the performance of a contract. 3.0 GFP Process Flow. 3.1 Entry Criteria GFP required for contract. See reference Defense Federal Acquisition Regulation Supplement (DFARS) Procedures, Guidance, and Information (PGI) Furnishing Government Property to Contractors The requiring activity or program management office of primary responsibility (OPR) will identify the property and provide justification for providing it to the contracting office IAW the elements attached in FAR Part

12 Government Property Policy and PGI Furnishing Government property to contractors. See References in Tables Below Existing contracts enter the GFP Process Flow when applicable GFP process activities occur, such as contract modifications affecting GFP or disposition of GFP at contract completion. 3.2 Inputs: Complete identification and documented justification of GFP. GFP clauses included in the contract, pursuant to FAR Contract Clauses, DFARS Contract Clauses, and DFAR Contract Clauses. 3.3 Outputs: Accountability in the Accountable Property System of Record (APSR) and completed inventory reports. 3.4 Exit Criteria GFP is removed from the contract when no longer required for the performance of that contract. IAW Federal Acquisition Regulation (FAR) Part 45 and FAR , the contractor will promptly perform and report to the property administrator contract property closeout, to include reporting, investigating, and securing closure of all loss of government property cases; physically inventorying all property upon termination or completion of contract; and disposing of items at the time determined by the government to be excess to the contract FAR 45.6 Reporting, Reutilization, and Disposal, establishes policies and procedures for the reporting, reutilization, and disposal of contractor inventory excess to contracts and of property that forms the basis of a claim against the Government (e.g., termination inventory under fixed-price contracts).

13 Figure 1. GFP Process Flowchart Standardize and Manage Processes

14

15

16 Table 2. GFP Process Flow Activities Step Activity Description OPR 1 The Need for a contract Requirements generator has established a new requirement that will require a contract. Program Office (Contracting) 2 GFP Required; yes or no? When yes, continue to step 3. When no, then the contractor is responsible for providing all equipment for the performance of the contract. Begin the Contractor Acquired Property (CAP) process (Ref Table 4). The contractor may also furnish the required equipment for the performance of the contract. When GFP is found to be applicable at a later date, return to step 2. 3 Identify known GFP requirements Program Office prepares a list of all known GFP requirements IAW AFI Government Furnished Property. (Added ); AFMAN IT Asset Management Program Office (Program Management) Form Integrated Product Team and Determine GFP Supportability and Conduct Justification Analysis and Include Disposition Instructions in Draft SOW. Product Support Manager/LG Involvement GFP Justified and Supportable; yes or no? Contactor must provide; enter the CAP process Conduct Acquisition Strategy Panel (ASP) Program Manager (PM) / Logistics Management Specialist (LMS) forms an IPT of all stakeholders to include at a minimum: the contracting officer, resource manager, the engineer, the equipment specialist, and, if required, the requiring activity / major command. This IPT determines if the known list of GFP is supportable and provides documentation to the contracting officer. The Program Office develops the Government Property Decision Document and ensures it addresses each element required by DFARS PGI Furnishing Government Property to Contractors. Program Office provides the Decision Document to the Contracting Officer as part of the Requirements Package. Product Support Manager provides support to the justification analysis as required. When GFP is determined to be justified and supportable, move to step 6. When GFP is determined not to be supportable, begin the CAP process (reference Table 4). When GFP is determined not to be justified, the contractor provides the property at no cost to the government. When GFP is found to be applicable at a later date, return to step 2. The contractor must provide the property when GFP is determined not to be supportable for the performance of the contract. FAR Part Contents of Written Acquisition Plans - Government-furnished property. Indicate any Government property to be furnished to contractors, and discuss any associated considerations, such as its availability or the schedule for its acquisition (see FAR ). DFARS PGI Furnishing Government Property to Contractors. The requiring activity (project or program manager, or purchase request generator), as part of its responsibility for acquisition planning (FAR part 7, Acquisition Planning), is the decision point as to whether or not to furnish property to contractors. The basis for any decision to provide Government Property is documented per step 4.. Program Office (Program Management) Product Support Manager/LG Program Office (Program Management) Contractor Program Office (Program Management) 7 Submit approved initial GFP Attachment to contracting The GFP attachment is prepared using DOD s mandatory Government Furnished Property Attachment format, IAW DFARS PGI , for inclusion in the draft Request for Proposal (RFP). Program Office (Program Management)

17 Step Activity Description OPR Draft RFP; yes or no? Conduct Industry Day Event Produce a revised GFP Attachment When the program is releasing a draft RFP, then include the GFP attachment in the draft RFP for industry review and comment. Move on to step 9. When the program is not releasing a draft RFP, move to step 12. Program Office conducts an Industry Day, as required, and discusses GFP with all interested parties. Program Office revises, as required, GFP attachment based on input from Industry. Program Office (Program Management/ Contracting) Program Office (Program Management/ Contracting) Program Office (Program Management) Conduct GFP Supportability Analysis Product Support Manager/LG Supportability Analysis 12 Write RFP Program Office coordinates with IPT to determine if revised list of GFP is supportable. The PM/LMS provides the revised GFP attachment to determine supportability. Contracting develops RFP and includes the GFP attachment that is formatted in accordance with PGI for release to industry. The RFP must include the government property clauses found in FAR , DFARS , and DFARS Program Office (Program Management) Product Support Manager/LG Contracting 13 Release Solicitation Contracting releases RFP to industry. Contracting 14 Receive Proposal and Provide GFP Attachment to PM Contracting receives the proposal(s) from industry and forwards the GFP attachment to the requirements generator. Contracting 14.1 Proposed GFP Attachment Review The program team reviews the proposed GFP attachment and identifies differences. Program Office (Program Management) 14.2 Product Support Manager/LG Support The Product Support Manager/LG supports as required. Product Support Manager/LG New GFP proposed; yes or no? Proposed GFP Attachment Availability Analysis Product Support Manager/ LG supports Availability Analysis Additional GFP Items Available; yes or no? Contractor must provide; enter the Contractor Acquired Property process When the contractor proposed new GFP items on the attachment, submit to AFMC/A4. If the contractor did not propose new GFP items on the attachment, proceed to step 19. AFMC/A4 conducts availability analysis and returns the proposed GFP attachment to the program office with availability or non-availability status of proposed differences. Product Support Manager/LG supports in determining the availability of proposed GFP as required. When the additional items to the GFP attachment are available, move on to step 18. When the additional items to the GFP attachment are not available, the contractor is responsible for providing the non-available equipment for the performance of the contract. The contractor must provide non available equipment for the performance of the contract through a cost reimbursement contract line item (i.e. CAP) unless the item is commercially available. Program Office Program Office Product Support Manager/LG Program Office/Program Management Contractor

18 Step Activity Description OPR 18 Provide final GFP for final signature and reservation of GFP 19 Award Contract No earlier than 90 days prior and no later than 30 days prior to anticipated contract award date, the program office provides the final GFP Attachment to AFMC/A4 for final review and approval. The Program Office provides the contracting office the final GFP Attachment using the GFP format, IAW DFARS PGI AFMC/A4 along with the LG stakeholders makes a firm commitment to provide GFP and returns the final signed GFP attachment using the required format IAW DFARS PGI to the program office. The Loan Control Officer reserves the approved GFP items on the attachment. Contract is awarded with an adequately justified list of GFP that is formatted IAW DFARS PGI and certified as available by the required need date. The contract includes the Government property clauses found in FAR and DFARS and Program Office AFMC/A4 and LG GFP Community Contracting Office 20 Distribute Contract 21 Validate and/or Upload GFP Attachment to Electronic Data Access (EDA) 22 Assign DoDAAC Notification to AFMC/A4 with signed GFP Attachment and DODAAC; Notification to contractor to Place Requisitions Establish Material Control Activity (MCA) Contracting distributes all contractual documents and attachments IAW FAR 4.2 and DFARS Contracting validates that all properly formatted GFP attachments are posted to EDA. When necessary, contracting manually uploads the GFP attachment into EDA in order to meet the requirements of DFARS (a). (See also Addendum A - Manual Upload of GFP Attachments to the Electronic Document Access (EDA)). The contracting office requests a DoDAAC for awarded contract IAW AFFARS Maintaining DoD Activity Address Codes (DoDAAC). The Program Office provides AFMC/A4 with the awarded GFP Attachment and the assigned DODAAC. At the same time, the Program Office notifies the Contractor that they may place a requisitions for approved GFP prior to than 10 days from this date. Upon receiving notification from AFMC/A4 that the contract has been awarded, the LCO establishes an MCA for the loan. Contracting Office Contracting Office Contracting Office Program Office (Program Management) LCO 25 Contractor submits requisitions The Contractor submits requisition through MILSTRIP / DLA Logistics Management Standards (DLMS) for authorized GFP IAW the contract. Contractor 26 LCO Releases Requisition The LCO releases requested GFP for shipment to contractor. D035A electronically provides a notification to Invoices, Receipt, Acceptance, and Property Transfer (irapt) (the property piece of Wide Area Work Flow (WAWF)). Material Manager/LCO 27 Accountability established in APSR (AFEMS) D035A electronically updates Air Force Equipment Management System (AFEMS). AFEMS establishes / updates the accountability record. Material Manager/LCO 28 Contractor receives requisition in irapt The Contractor acknowledges receipt of requested GFP in irapt, IAW DFARS References update to IUID Registry. Contractor 29 irapt Updates D035A irapt provides receipt acknowledgment to D035A that contractor has receipted authorized GFP. Material Manager/LCO 30 Request for contract change that affects GFP? The Contracting Office receives a request to change contract affecting authorized GFP. Contracting Office

19 Step Activity Description OPR 31 New or additional GFP requested When new GFP is required, conduct an availability analysis (Step 16) for requested GFP. Program Office (Program Management) 32 Contract Modification The Contracting Office prepares a contract modifications affecting authorized GFP. Contracting Office Table 3. GFP Process Flow Return Activities Step Activity Description OPR 1 Need for GFE Disposition Identified Requiring activity establishes GFE is no longer required for contract performance. This can happen in a variety of ways: 1. Program office identifies GFE on the contract that is no longer required. 2. The end of the period of performance for the contract to which the GFE is accountable is imminent. 3. The end of the loan for an authorized piece of GFE is imminent. 4. The Contractor identifies GFE no longer required for the contract and sends a request for disposition into the program office. Program Office (Program Management) 2 Form disposition team and prepare disposition instructions Program Office forms a team to develop disposition instructions for GFE no longer required for contract performance. Program Manager / Logistics Management Specialist (LMS) will form an IPT to include at a minimum: the contracting officer, resource manager, product support manager (PSM), LCO, AFMC/A4, and, if required, the requiring activity / major command, equipment specialist, and engineering. NOTE: AFMC/A4 notifies the program office via when GFE is due within 60 calendar days and follow-up when not resolved within 30 calendar days and again when overdue. Program Office (Program Management) 3 Provide disposition instructions to Contracting Contracting receives disposition instructions from Program Office. Program Office (Contracting) 4 Directs Contractor w/disposition instructions and modifies contract Contracting provides contractor with disposition instructions and modifies contract, as required. Program Office (Contracting) 5 Execute according to disposition instructions Contractor executes disposition instructions. Contractor 6 Submit Inventory Schedule to Plant Clearance Automated Reutilization Screening System (PCARRS) Contractor submits inventory schedules into PCARSS. Contractor

20 Table 4. GFP Process Flow CAP Step Activity Description OPR 1 Potential for CAP identified. Contractor acquires property titled to the Government, by virtue of contract type, financing provisions, specific requirements of the contract, or by the identification of property as a deliverable item. Program Office (Program Management/ Contracting) 2 Potential for delivery and acceptance; yes or no? Reference PGI (ii)(b) The requiring activity GFE IPT reviews Addendum B to assess when a delivery requirement for CAP may arise during contract performance. The requiring activity bases the assessment on program history or knowledge of requirements to include, ST and STE with special storage requirements; or equipment meeting or exceeding the DoD capitalization threshold; and the mandate to deliver and accept CAP before (1) transferring CAP to another contract for use as GFP (to include the follow-on contract), (2) transitioning CAP to GFP under the current contract, or (3) delivering CAP to the AF as government property. When yes, move to step 3. When no, continue with GFE process and address unanticipated delivery of CAP, as needed. Program Office (Program Management) 3 Develop CAP management approach The requiring activity decides on a CAP management approach, considering the potential need for reporting requirements, the type of CAP to be delivered (Equipment, ST/STE), any specific marking requirements, or delivery instructions, known at the time. The requiring activity provides any unique CAP management requirements to the contracting office. Program Office (Program Management) 4 Incorporate CAP requirements into contract Contracting ensures solicitation and contract reflect CAP management approach developed by requiring activity, to include data reporting requirements, the line item structure and descriptive data, IUID marking requirements, and any other specific instructions needed to facilitate the delivery of CAP on a contract line item of the contract. Program Office (Contracting) 5 Immediate need for CAP delivery; yes or no? When no, continue with GFE process until delivery requirement arises. When yes, proceed to step 6. Program Office (Contracting) 6 Initiate CAP Delivery and Acceptance Requiring activity reviews CAP information received from the contractor via an ad hoc request IAW FAR , CDRL deliverable, or inventory disposal schedule, and then solicits IPT involvement to determine disposition instructions. Return to Table 3, Step 2, Form Disposition Team. Program Office (Program Management) 7 Execute CAP Delivery Instructions Contracting ensures each individual CAP item required for delivery, is delivered and accepted under a line item with the data elements required by DFARS PGI , not-separately priced, marked IAW IUID requirements and requiring activity instructions stated in the contract, and delivered to the desired location. Program Office (Contracting) 8 Execute according to disposition instructions The Contractor executes disposition instructions. Contractor 9 Compile CAP records Requiring activity compiles all records of delivered CAP, to include DD250 (irapt Material Inspection and Receiving Report), property data reported by the contractor, contract line item descriptive data, etc., and provide to logistics. Program Office (Program Management) 10 Record delivered CAP in APSR Product Support Manager/LG ensures an accountable record exists for CAP delivered as GFE or General Equipment. Product Support Manager/LG

21 4.0 Accountability. 4.1 Process Results Ensures accountability of Air Force property in the hands of contractors is in an Accountable Property System of Record (ASPR). 5.0 Roles and Responsibilities. 5.1 SAF/AQX Maintain process guide, ensures policy/guidance is current, and provides support related to the accountability and management of GFP Support audits and conducts Staff Assistance Visit (SAV) as requested by MAJCOMs. 5.2 SAF/AQC Ensure appropriate clauses are included in awarded contracts Act as Air Force POC with Defense Procurement and Acquisition Policy (DPAP). Reviews and comments on all new direction/guidance of GFP matters Prepare Air Force FAR Supplement (AFFARS) changes driven by FAR and DFARS requirements. 5.3.HAF/A4L 6.0 Tools Responsible for management and maintenance of Air Force Accountable Property System(s) of Record (APSR) used to manage and account for GFP Provide policy and guidance to Air Force Materiel Managers on GFP. 6.1 Air Force Property Management System (AFEMS): 6.2 DoD IUID Registry: 6.3 DoD Procurement Tool Box: 6.4 Defense Procurement and Acquisition Policy (DPAP): 6.5 GFP Policy: 6.6 FAR, DFARS, & AFARS: 6.7 DPAS 6.8 DO Training. 7.1 Defense Acquisition University: CLE Item Unique Identification (IUID) Marking CLM Physical Inventory

22 7.1.3 CLM Foundations of Government Property CLM Fiscal & Physical Accountability and Management of DoD Property CLC Managing Government Property in Possession of Contractor CLM Item Unique Identification 7.2 DoD Procurement Tool Box: GFP Basics (contains instructions for completing SGFP and RGFP) Intermediate GFP Training Contractor Acquired Property 7.3 Air Force Contracting Webinar: 7.4 Property and Property Policy: 8.0 Definitions, Guiding Principles or Ground Rules & Assumptions. 8.1 Accountable Property System of Record (APSR) business system/applications used to account for and maintain accountability of government property Accountable Property Record record contained within the Accountable Property System (APSR) that must be established and maintained in the APSR for all items with an acquisition cost of $5,000 or greater. 8.2 Supportability Analysis - procedures and methodologies employed to determine if an asset exists in the DoD inventory. 8.3 Justification Analysis process used to determine if furnishing GFP is (1) in the best interest of the government, (2) overall benefit to the acquisition significantly outweighs the increased cost of administration, including ultimate property disposal, (3) property does not substantially increase the Government s assumption of risk and (4) the government requirement cannot otherwise be met. 8.4 Electronic Data Access - a web-based system that provides secure online access, storage, and retrieval of contracts, contract modifications, Government Bills of Lading (GBLs), DFAS Transactions for Others (E110), vouchers, and Contract Deficiency Reports (CDR) to authorized users throughout the Department of Defense (DoD). 8.5 Air Force Property Management System (AFEMS) a compilation of data from multiple Air Force, Air Force Materiel Command (AFMC), and base level data systems, which enables the Air Force to determine, authorize, account for, and report the types and quantities of property required to accomplish the Air Force mission. 8.6 Plant Clearance Automated Reutilization Screening System (PCARRS) a property management application used for reporting, screening, requisitioning, and disposing of excess government property located at contractor facilities 8.7 DLA Logistics Management Standards (DLMS) the DoD standard for transactional information exchanges among automated information systems that comprise assigned business processes of the DoD logistics and global supply chain management systems. 8.8 Wide Area Workflow (WAWF) an interactive web-based application that allows contractors/vendors to electronically submit invoices and receiving reports, and the government to inspect, accept, receive, and pay electronically.

23 8.8.1 Invoicing, Receipt, Acceptance and Property Transfer (irapt) - is a secure web based system for electronic invoicing, receipt, and acceptance. irapt allows vendors to submit and track invoices and receipt/acceptance documents over the web and allows government personnel to process those invoices in a real time paperless environment. 9.0 References to Law, Policy, Instructions or Guidance. References that relate to this process include the following:

24 Item DoD Instruction so.dla.mil/elibrar y/manuals/instru ctions.asp GFP Policy Documents and Guidance Description DoDI : DoD Supply Chain Materiel Management Policy Establishes policy, assigns responsibilities and prescribes procedures for management of materiel across the DoD supply chain including materiel in the possession of contractors. DoDI : Accountability and Management of Government Contract Property Establishes policy, assigns responsibilities, and prescribes procedures for management and accountability of Government-Furnished Property (GFP) in the custody of defense contractors. DoDI Accountability and Management of DoD Property and Other Accountable Property Establishes policy and procedures and outlines requirements reflecting the accountability perspective of property management; Establishes policy, assigns responsibilities, and provides procedures for DoD-owned property and other accountable property, assists DoD property managers, accounting and financial managers, and other officials; Complements the accounting and financial reporting requirements contained in DoD R (Reference (e)). DoDI : Item Unique Identification (IUID) Standards for Tangible Personal Property FAR Establishes the IUID Registry as the master data source for Government Furnished Property (GFP). Part 45 - Government Property Subpart : Definitions (see "Government Furnished Property") DFARS DFARS : Contract Clauses Describes contract clauses to include in GFP requirements.

25 DFARS : Reporting of Government Furnished Property Provides definitions of GFP-related terms and requirements of reporting GFP to the IUID Registry; Includes data to report to the IUID Registry and reporting procedures. DFARS : Government Furnished Mapping, Charting, and Geodesy Property Outlines the definition and reporting instructions. DFARS : Tagging, Labeling, and Marking of Government- Furnished Property Establishes definition of serially-managed items and requirement of tagging, labeling and marking of GFP. DFARS : Reporting Loss of Government Property Defines loss of Government Property; Provides contractors with procedures on how to report the loss of Government property. DFARS : Contractor Property Management System Administration Provides guidance for acceptable contractor system or systems for managing and controlling Government property. DFARS : Reporting, Reutilization, and Disposal Outlines procedures for inventory disposal schedules; sales of surplus property proceed; demilitarization, mutilation, and destruction; contractor inventory and disposal of scrap. Defense Federal Acquisition Regulation Supplement (DFARS) and Procedures, Guidance, and Information (PGI) PGI 245.1: Government Furnished Property-General Guidance on GFP policy; furnishing of GFP to contractors; transferring Government property accountability; GFP attachments to solicitations and awards; and contracting office responsibilities. PGI : Furnishing Government property to contractors Guidance to determine if government property should furnish property to contractors. PGI : GFP Attachments to Solicitations and Awards Provides guidance for implementation of PGI ; Introduces electronic formats for two GFP attachments (reporting GFP as data).

26 PGI 245.2: Solicitation and Evaluation Procedures Outlines the solicitation and evaluation procedures and detailed instructions for GFP attachments. PGI Policy and PGI Delivery of contractor-acquired property Policy and delivery of contractor acquired property guidance. AFI/ AFMAN *** Please note the change affecting contractor-performed logistics support and performance-based logistics support contracts at (1)(ii) *** AFI Materiel Management - Air Force Materiel Management AFI Transportation - Maintaining Air Force DoDAAC AFI / Acquisition/Logistics Integrated Life Cycle Management AFMAN Material Management Procedures Memorandums Government Furnished Property Clause Compliance Explains the use and implementation of required GFP clauses and establishes quarterly clause compliance scorecards. Government Furnished Property Memo Describes requirements for strengthening accountability and management of personal property owned by DoD. Contractor Acquired Property (CAP) under Cost Reimbursement Contracts and Line Items Clarification of DoD business rules for CAP. Military Property Valuation Contractor Acquired Property Business Rule Clarification of when property is recorded on DoD financial statements or in accountability systems.

27 Item DoD Instructions IUID Policies, Documents and Guides Description DoDI : DoD Supply Chain Materiel Management Policy Requires unique item level traceability for DoD serially managed items that are sensitive or pilferable, DoD serially managed controlled inventory items (CII), nuclear weapons-related material (NWRM), depot level reparables, and any item that the DoD materiel manager decides requires unique item level traceability using a unique item identifier (UII) assigned to each individual item. DoDI : DoD Counterfeit Prevention Policy Assigns responsibility to apply IUID using UII in accordance with DoDI for critical materiel identified as susceptible to counterfeiting to enable authoritative life-cycle traceability and authentication. DoDI : Serialized Item Management (SIM) for Materiel Maintenance Establishes a serialized item management program where the (parts c Military Departments and Defense Agencies: 1. Identify populations of select items, components, and end items); 2. Mark all items in each population with a UII; 3. Generate, collect, and analyze maintenance, logistics, and usage data about each specific item. DoDI : Accountability and Management of Government Contract Property Requires DoD Components to utilize the DoD IUID Registry and its integral GFP module to trace GFP at the unique item level by UII and to maintain accountability of each GFP item meeting the requirements of DFARS subpart DoDI : Relocatable Buildings Requires relocatable buildings purchased as property to be inventoried and accounted for with an IUID in accordance with DoDI and maintained in accordance with DoDI DoDI : Operation of the Defense Acquisition System Requires IUID planning and implementation be documented in an IUID Implementation Plan and included in the program s Systems Engineering Plan (SEP) at Milestones A, B, and C.

28 DoDI : Accountability and Management of DoD-Owned Property and Other Accountable Property Requires accountability of property be enabled by IUID for identification, tracking, and management in accordance with DoDD ; Requires accountable property records be established in an APSR; Requires a Unique item identifier (UII) or DoD recognized IUID equivalent, if available and necessary for unique identification, in addition to other data elements, at a minimum, of an APSR; Requires organizations to retain accountability for property in-transit status, at a minimum requiring records of: 1. part number, NSN, serial number, UII, or DoD recognized IUID equivalent, nomenclature, quantity, and value of items shipped from contractors or vendors for which title has passed to the Government, 2. part number, NSN, serial number, UII, or DoD recognized IUID equivalent, nomenclature, quantity, and value of items shipped from one organization to another organization, for which accountability is retained by the accountable organization until receipt and acceptance by the consignee, and 3. part number, NSN, serial number, UII, or DoD recognized IUID equivalent, nomenclature, quantity, and value of items being moved from one location to another location within an organization. DoDI : Protection of Mission Critical Functions to Achieve Trusted Systems and Networks (TSN) Requires the application of risk management practices include TSN process, tools, and techniques to implement IUID for national level traceability of critical components in accordance with DoDI DoDI : Defense Medical Materiel Program Requires acquisition strategies and programs consistent with DoDI for medical materiel management that promote standardization of medical supplies and property; Requires coordination and support for initially registering in the DoD IUID Registry and utilizing the DoD IUID Registry as an authoritative data source to support Defense Medical Logistics Standard Support (DMLSS) and component property systems for all defense medical materiel that have a unique item traceability requirement at any point in their lifecycle. DoDI : Item Unique Identification (IUID) Standards for Tangible Personal Property Describes procedures and assigns responsibilities for identifying personal property and for establishing accountability and value over uniquely identified personal property; prescribes standards for constructing the UII; Assigns responsibilities and establishes procedures for the maintenance and operation of the DoD IUID Registry; Establishes the DoD IUID Registry as the authoritative source of Government unit acquisition cost for items with UII and UII pedigree data established at delivery, and the master data source for GFP; Establishes the

29 functional framework for IUID as it relates to associated DoD policy and guidance. DoDI : Organization Unique Identification (OUID) Standards for Unique Identification of External Department of Defense Business Partners DoD Directives Requires the use of the national and international standards for external OUID designations to identify external enterprises. DoDD : DoD Response to Nuclear and Radiological Incidents IAW DoDI , identification of NWRM items using an IUID construct, ensures accuracy of NWRM identification data, and provides NWRM IUID information to incident response teams upon request. DoDD : Unique Identification (UID) Standards for a Net-Centric Department of Defense DoD Publications Establishes policy and prescribes the criteria for creation, maintenance, and dissemination of UID data standards for discrete entities; Establishes policy and assigns responsibilities for establishment of the DoD enterprise-wide UID strategy development, management, and use of unique identifiers and their associated authoritative data source to preclude redundancy. DLM : Defense Logistics Management System (DLMS) Integrates IUID requirements in to the DLMS processes and relevant transaction sets. DLM : Military Standard Requisitioning and Issue Procedures (MILSTRIP) Integrates IUID requirements in to MILSTRIP DD Form 1348-A, Issue Release/Receipt document. DoD Manual V1: Defense Critical Infrastructure Program (DCIP): DoD Mission-Based Critical Asset Identification Process (CAIP) Provides baseline elements of information (BEIs) for assets identified as task critical assets (TCAs) or defense critical asset (DCAs); Requires documentation of TCAs in accordance with DoDI DoD R: DoD Supply Chain Materiel Management Regulation Require UII be assigned to individual assets of an item being controlled or managed under a unique item tracking (UIT) program.

30 DoD Manual : Physical Security of Sensitive Conventional Arms, Ammunition, and Explosives (AA&E) Requires unit-level personnel to perform 100% monthly physical count and installation personnel to perform 100% semi-annual physical count of security risk category (SRC) I missiles and rockets and SRC II-IV arms by serial number or UII; Requires unit-level personnel to perform 100% quarterly physical count and installation personnel to perform 100% semi-annual physical count of SRC II and III missiles and rockets by serial number or UII. DoD Manual , Vol 1: Global Force Management Data Initiative (GFM DI) Implementation: Unique Identification (UID) for GFM DFARS Establishes responsibilities and procedures for UID of force structure data in software application programs known as GFM organization servers (OS); Requires personal property or real property chosen by GFM components for inclusion in OSs be uniquely identified as specified in DoDD , DoDI , and DoDI : Item Identification and Valuation Requirements Provides policies for unique item identification, valuation, reporting of Government-furnished property, and assignment of Government-assigned serial numbers; Identifies the contract clauses to include in solicitations and contracts for each of these policies : Item Unique Identification and Valuation Provides definitions of IUID-related terms and IUID requirements for identified items; Requires IUID requirements to be included in subcontracts if applicable : Reporting of Government Furnished Property Provides definitions and requirements for IUID Registry; Includes data to report procedures : Use of Government Assigned Serial Numbers AFPAM Provides requirements for marking major end items with Government-assigned serial numbers and registration of Government-assigned serial numbers with UII Acquisition Integrated Life Cycle Management Military Standards/Han dbooks MIL-STD 129: Department of Defense Standard Practice Military Marking for Shipment and Storage Provides minimum requirements for uniform military marking for shipment and storage; Provides identification linear (Code 39) and 2D (PDF417) bar code content and marking requirements, including UIIs, for non-ammunition containers, unit packs, intermediate containers, and exterior shipping containers;

31 Provides special marking requirements for components of disassembled items with UIIs; Provides requirements for IUID data in DD1348-1A. MIL-STD 130: Department of Defense Standard Practice Identification Marking of U.S. Military Property Provides item marking criteria for development of specific marking requirements and methods for identification of items of military property produced, stocked, stored, and issued by or for DoD, including criteria and data content for free text and machine-readable information (MRI) applications, including IUID. Addendum A Manual Upload of GFP Attachments to the Electronic Document Access (EDA) This addendum describes the process to upload Government Furnished Property (GFP) attachments into EDA. This process provides a standardized, repeatable method to ensure GFP attachments post to EDA in the correct attachment type and as a separate and distinct document from the contract. The process assumes the Program Office provides a complete attachment in the format required by DFARS Unless all steps of the process occur, the property information contained in the GFP attachments will not flow to the IUID Registry. MAJCOM or local procedures may centralize the upload process, but responsibility resides with the individual Contracting Officer. Step 1. Role Authorization. Uploading contract attachments requires approval and authorization beyond the View Only access to EDA most users have. To obtain the Contract Attachment capability, request the Upload Attachments/Admin Docs role from your EDA Point of Contact. Request this role as soon as possible. Confirm assignment to the appropriate issuing office DODAAC, as EDA limits upload attachment rights by this code. Step 2. Contract Assembly. Assemble contacts in accordance with existing contract writing system (CWS) processes and procedures. Use only properly completed attachments, in the format required by DFARS and provided by the Program Office (Program Management OPR, requiring activity, etc.). Incorporate an image-based (human-readable, scanned) copy of the GFP attachment during contract assembly, if the CWS cannot utilize the text-based (machine extractable, smart form ) version of the GFP attachment. Ensure the text-based attachment manually uploaded to EDA is an accurate representation of the image-based attachment incorporated in the underlying contract. Step 3. Contract Distribution. Distribute the contract document IAW existing procedures. Centralized contract automation does not resolve the contracting officer s contract distribution responsibility, which includes uploading attachments to EDA. Step 4. Manual Upload. Upload a text-based (machine extractable) version of the GFP attachment within 5 business days of the contract posting to EDA. If a centralized distribution function completes Step 4, then proceed to Step 5. If not, start the upload step by finding the applicable contract in EDA and clicking

32 the Add" link in the Attachments column. If attachments already exist on the contract, the screen displays a "View (#)" link with a number which represents the quantity of attachments. When uploading a GFP attachment, label it correctly. In the Attachment Type drop down selection, select Government Furnished Equipment List for the GFP attachment. In the Attachment Description, name GFP attachments as Government Furnished Property. See Table 1 for visual guidance. Table 1 - Enter Attachment Data: GFP Example GFP (GFP) Attachment Step 5. Verification. Verify completion of an upload to EDA using the simple three-step process. First, check EDA s contract list Attachments column to make sure a "View (#)" link appears. This link indicates a proper attachment upload. However, these attachments may be GFP attachments or other contract attachments, such as the signed front page of the contract. Next, click the link to open the attachments folder to see if it includes a Government Furnished Equipment List for the GFP attachment. Click on the link(s) to open the attachment. If the text-based (machine extractable) GFP document opens, then the upload process was correctly followed. See Table 2.

33 Table 2 - Steps to Verify Attachment Upload: GFP Example 1. Attachment column displays "View(#)" link indicating upload 2. Folder contains link to GFP Attachment 3. Link opens text-based (machine extractable) GFP attachment Step 6. Maintenance. Contract modifications changing a GFP attachment follow the same process. Do not use EDA s Modify or Delete attachment functions for previously uploaded

34 Addendum B Management of Contractor Acquired Property (CAP) Improperly delivered contractor acquired property (CAP) negatively affects AF accountability and auditability objectives. This addendum sets forth management options for avoiding negative outcomes and facilitating delivery and acceptance of CAP in a disciplined manner. Accordingly, representatives of the Government Furnished Equipment (GFE) Integrated Product Team (IPT) should review Sections 1 and 2 early in the acquisition process. Step 1 - Managing CAP, outlines the relationship between CAP and AF property accountability requirements and Section 2 - Options to Proactively Manage CAP, provides several flexible, tailorable approaches to control CAP, sooner rather than later. If a review of both sections does not indicate a need for proactive management approach, then the GFE IPT will rely on a reactive, ad hoc approach. In such cases, Section 3 - Mandatory Requirements for CAP Delivery clarifies the minimum requirements to deliver and accept unanticipated CAP. Finally, Section 4 - Delivery Not Required, describes actions and events that do not necessitate delivery and acceptance. Section 1. Managing CAP. Program Managers/Requesting Activities have the responsibility to manage CAP (Reference (a)) and contracting officers must award and manage contracts in accordance with the FAR, DFARS, and AFFARS (Reference (b), (c), (d)). Effective management requires a balance of two competing interests. On the one hand, Accountable property records shall not be established for CAP until delivery to the Department of Defense has occurred (Reference (e)). Acquisitions that do not require delivery and acceptance of CAP have no effect on AF property accountability. Therefore, the AF Accountable Property System of Record (APSR) does not include records for this portion of Government Property and oversight is limited only to reviews and audits of contractor accounting and property management systems. On the other hand, if delivery occurs, or should have occurred, then the AF inherits an immediate accountability requirement. In such circumstances, the GFE IPT must deliver and accept each item of CAP under a contract line item and create a corresponding record in the APSR (Reference (a)). This applies when delivering CAP to the AF and when converting CAP to GFP for use under the current contract, a follow on contract, or by another contractor. Only through formal delivery and acceptance under a contract line item will the AF obtain the information necessary to establish an accountable record, clear rights to ownership, and the key supporting documents needed for audit readiness. Section 2 provides a deliberate approach to manage CAP, with these two interests in mind, based on specific risk factors inherent to an acquisition (see Table 1). Table 1 - CAP Risk Table

35 Section 2. Options to Proactively Manage CAP. In most situations, existing policies, regulations, and contract clauses adequately manage CAP. Throughout contract performance, the contractor manages, consumes, expends, purchases, returns, or otherwise disposes of CAP, transparent to the AF. In such cases, Program Managers and Requesting Activities gain little from above-and-beyond management practices, such as recurring CAP reports. In fact, DFARS PGI (1) explicitly states, Ad-hoc contractor generated reports of contractor-acquired property used by government personnel for property accountability can result in duplicate accountability records, inefficient operations, and increased program costs, and are discouraged. Nonetheless, GFE IPT members supporting complex weapon systems programs, contracts with significant amounts of CAP or CAP of significant value, should assess CAP more closely. This includes programs or contracts with critical, highly useful items, those with a history of improperly rolling over CAP into successor contracts without formal delivery, and those containing items on a GFP attachment s reimbursable list. In any of these cases, the GFE IPT could use the following proactive options to identify and manage CAP long in advance of a delivery requirement, streamline the acceptance process, and facilitate records population in the APSR. a. Contract Reporting Requirements i. Type. When the Program Office (Program Management OPR, requiring activity, etc.), decides to identify CAP via recurring reports, the preferred option is a CAP-only Contract Data Requirements List (CDRL) (see attachment 1). This deliverable provides a report of CAP for the requiring activity to review and consider for delivery at the appropriate time. Reporting includes data elements needed to create a record in the APSR, if and when those items are delivered. If program requirements dictate additional reporting of Government Furnished Property (GFP), consider using the CAP and GFP CDRL (see attachment 2). Both reports require information over and above the FAR and DFARS property clauses, and likely result in additional cost to the program and require added Government resources to review and take action on the information reported by the contractor. ii. Timing. When using a CDRL, the Program Office, should consider when initial and final reports should occur along with the frequency of interim deliverables, and then adjust CDRL timing as needed (i.e., DD 1423 Blocks 10, 12, and 13). Adjustments should take into account period of performance, program complexity, and anticipated amount of property acquired, fabricated, or otherwise provided by the contractor. The final submission should occur within days of contract completion/termination. iii. Tailoring. The Program Office may tailor or limit the reporting to those items, types, or classes of property most likely to have a delivery requirement, or would otherwise benefit from reporting. For example, CAP in overseas or contingency locations, or historically prone to improper roll over on to follow-on contracts. Also, consider requiring the contractor to submit a reutilization and disposition recommendation along with the final submission. To maximize standardization across the AF, tailoring should focus on the flexibilities contained in this process guide and the administrative requirements of the requiring activity. b. Pre-established Contract Structure i. Type. The Contracting Office should consider a pre-established contract structure to facilitate delivery and acceptance of CAP under a contract line item based on requirements provided by the Program Office. The structure should use a mix of parent Contract Line Item Numbers (CLINs), sub line item numbers (SLINs), and exhibit line item numbers (ELINs) appropriate to the circumstances If the Program Office provides a CAP-only or CAP-GFP CDRL in the requirements package, then the

36 contract structure must allow for CAP identification on ELINs (see attachment 3). If a CDRL is unnecessary, the GFE IPT may still consider incorporating a basic parent CLIN/subCLIN contract structure (see attachment 4). The structure must follow FAR and DFARS line item structure requirements and should include additional administrative information provided by the requiring activity. ii. Timing. Establish a CAP CLIN structure as soon as it is apparent that CAP will be delivered. This includes situations when CAP converts to GFP under the current contract, a follow-on contract, or any other contract. Creating a CLIN may occur as early as a draft solicitation, through the point when a delivery requirement arises, right up to contract completion. See Section 3 if adding a line item after physical completion of the contract. iii. Tailoring. The Program Office should inform the contracting office (1) whether the anticipated CAP is equipment, special tooling, special test equipment, or material, (2) if they intend to require reporting via CDRL, and, if known, (3) the rough magnitude of potentially delivered CAP. The contracting office uses this information to create a parent CLIN for the delivery of each CAP type, the CDRL requirement, and structure any subordinate CLINs. In general, a subclins may accommodate delivery of a limited number of items, whereas ELINs would streamline delivery of a lengthy list. In addition, the contracting office should establish Parent CLINs to clarify deliverables are (1) Not Separately Priced (NSP), (2) delivered F.O.B. destination, and (3) to be marked in accordance with Item Unique Identification (IUID) requirements. Also, IAW DFARS PGI each distinct item (i.e., Sub-CLIN, ELIN) must include the following data elements, to include serial number/ Unique Item Identified (UII), if known: CLIN Item Description/ Nomenclature Type Designation NSN PIN Qty. Unit of Measure Serial Number / (UII) Original Unit Acquisition Cost Date Placed in Service by the Contractor c. Early Identification of CAP Required for Delivery If the Program Office can identify the individual CAP items or groups of items required for delivery, then the contract line item description could identify the items in advance of delivery. Note this step provides details beyond the rough magnitude described in paragraph b. Although some data elements will remain unknown until delivery, a basic outline of the identifying data and assignment of line item numbers (e.g., ELIN, sub-clin) may streamline delivery and acceptance. At such time, the contractor would provide the remaining information for each item of CAP, as required. The contract should not incorporate CAP not anticipated for delivery, for example, by incorporating the contractor s proposed Bill of Materials (BOM) into a contract line item or attachment. Section 3. Mandatory Requirements for CAP Delivery. The AF must have accountability of delivered and accepted CAP. The proactive management approach at Section 2 integrates with Section 3 to reduce the burden during the delivery phase. Nonetheless, in the event of unanticipated delivery requirements or times if proactive management did not occur, the GFE IPT should execute an expedited approach to deliver and accept CAP via contract line item. Follow this section to determine if delivery is required, properly deliver and accept, populate the APSR with information on delivered items, and modify the contract.

37 a. Decision to Require Delivery The added burden and liability inherent to GFP requires a disciplined approach to CAP delivery requirements. However, if delivery requirements arise, then delivery and acceptance must occur in accordance with DFARS requirements. When the contractor requests retention of CAP for use on a follow on contract, and the GFE IPT approves, then delivery under a line item must occur. As another example, if the requiring activity or logistics function requires return of excess items on the RGFP attachment s Reimbursable List, or items reported via the CAP CDRL, then delivery and acceptance must occur under a contract line item. All of these examples necessitate formal delivery and acceptance. Regulations do not permit undocumented, informal roll over of CAP from one contract to another, CAP becomes GFP in this case. b. Delivery and Acceptance Event Taking delivery of CAP is much the same as the delivery of any other item purchased by contract. The contractor invoices and reports delivery of CAP items via irapt (Invoicing, Receipt, Acceptance and Property Transfer) and ships the marked items to the desired delivery location, in accordance with Wide Area Workflow (WAWF), IUID, and GFP clauses and any additional requirements dictated in the contract. An authorized representative of the Government accepts these items through irapt, at which point the CAP business rules (Reference (f)) no longer apply, the property becomes accountable to the AF, and Product Support Manager/Logistics OPR, must establish a record of the property in the APSR. When subsequently furnished to a contractor, or immediately in the case of shipment-in-place, the property becomes GFP and must be documented and processed IAW GFP regulations and policies. c. Populating the APSR An accountable record of delivered and accepted CAP must exist in the APSR. The Program Office provides property data and records of delivered CAP to Product Support Manager/Logistics OPR, who in turn uses the information to populate the APSR. The CLIN descriptive data contains the minimum data elements of an accountable property record; however, a CDRL could be tailored to a specific APSR s data fields in order to streamline population of a specific APSR (e.g., AFEMS). Delivery also creates key documents, for example the DD 250 (Material Inspection and Receiving Report), to support the audit trail of delivered CAP residing on the AF property books. d. Contract Modifications The specific circumstances dictate the required contract modification(s). For example, when converting CAP to GFP with the current contractor, the contracting office modifies the contract to deliver and accept CAP on a CLIN and add the transitioned CAP items as GFP. When transferring CAP to a followon contract, the contracting office modifies the current contract to deliver and accept CAP, provide the delivery location of the follow-on contractor, and then ensure the follow-on contract appropriately adds the transitioned CAP as GFP. When the AF takes possession of CAP, the contracting office modifies the contract to deliver and accept CAP and provides the delivery information of the AF location. In all cases, the requiring activity ensures delivered CAP has an appropriate IUID marking (Reference (g)). Regulations provide no exemption or shortcut from following all GFP regulations and requirements (justification, clauses, attachments, etc.), simply because the property started as CAP. Section 4. Delivery Not Required. When contractors consume CAP during contract performance or dispose of it via the plant clearance and screening process, the delivery and acceptance requirements do not apply. The same is true for contractor purchases or sales of CAP and approved exchanges (not contractual transfer) of acquired material with contractors via a credit/debit process authorized, but contractually transparent, to the AF. In such cases, the contractor follows disposition instructions contained the contract. The property administrator, Plant Clearance Officer (PLCO) and Administrative

38 Contracting Officer (ACO) handle disposition of CAP and notifies the contracting office when decisions are required. The decisions made by the AF requiring activities, logistics, and contracting personnel involved in the disposition process may consider CAP items. However, when there is no requirement to deliver the items, there is no need to create a CAP contract line item, populate the APSR, or execute other steps associated with the delivery and acceptance process. Section 5. References: (a) DoDI , Accountability and Mgmt. of Government Contract Property, 27 Apr 12 (b) Federal Acquisition Regulation, current edition (c) Defense Federal Acquisition Regulation Supplement, current edition (d) AF Federal Acquisition Regulation Supplement, current edition (e) DoDI , Accountability and Mgmt. of DoD Equipment & Other Accountable Property, 19 May 11 (f) OUSD AT&L Memo, CAP under Cost Reimbursement Contracts and Line Items, 11 Jan 10 (g) AFI /20-101, Integrated Life Cycle Management, 23 Feb 15 Section 6. Attachments: 1. Sample CDRL - CAP Only 2. Sample CDRL - GFP and CAP 3. Sample CLIN Structure - ELINs with CDRL 4. Sample CLIN Structure - Sub CLINs without CDRL

39 Attachment 1 - Sample CDRL - CAP Only CONTRACT DATA REQUIREMENTS LIST Form Approved The public reporting burden for this collection of information is estimated to average 110 hours per response, including the time for reviewing instructions, searching existing data sources, gathering and maintaining the data needed, and completing and reviewing the collection of information. Send comments regarding this burden estimate or any other aspect of this collection of information, including suggestions for reducing the burden, to the Department of Defense, Executive Services Directorate ( ). Respondents should be aware that notwithstanding any other provision of law, no person shall be subject to any penalty for failing to comply with a collection of information if it does not display a currently valid OMB control number. Please do not return your form to the above organization. Send completed form to the Government Issuing Contracting Officer for the Contract/PR No. listed in Block E. A. CONTRACT LINE ITEM NO. B. EXHIBIT C. CATEGORY: XX99 TDP TM OTHER: MGMT D. SYSTEM/ITEM E. CONTRACT/PR NO. F. CONTRACTOR 1. DATA ITEM NO. 2. TITLE OF DATA ITEM 3.SUBTITLE Government Property Report CAP Reporting 4. AUTHORITY (Data Acquisition Document No.) 5. CONTRACT REFERENCE 6. REQUIRING OFFICE MGMT-Series DID 7. DD 250 REQ 9. DIST STATEMENT 10. FREQUENCY 12. DATE OF FIRST SUBMISSION 14. DISTRIBUTION LT REQUIRED See Block 16 See Block APP CODE 11. AS OF DATE 13. DATE OF SUBSEQUENT SUBMISSION a. ADDRESSEE b. COPIES D A See Block 16 Draft Reg Repro 16. REMARKS Contracting Officer 1 1 Property Admin. 1 1 COR/PM 1 1 The Contractor shall provide a Contractor Acquired Property report per FAR for all CAP items acquired to accomplish the contract. The report shall be further detailed by Government Property classification (i.e. Equipment, Material, Special Test Equipment and Special Tooling). The report shall be delivered electronically in a spreadsheet using Microsoft Office Excel and in a structured order so that spreadsheet can be sorted and/or filtered. The GFP Report cannot be scanned or faxed. Abbreviations are not allowed. The CAP Report shall include the following fields: Final a. Contract Number b. Contract Name c. Commercial/Government Entity Code (CAGE) d. Contractor DoDAAC (IAW AFI ) e. Serial Number (if applicable) f. UII (if applicable) g. Item Name(Nomenclature) h. Stock Number (NSN) i. Part Number j. Total Quantity k. Unit of Issue (e.g. EA, PR) l. Unit Acquisition Cost m. Date placed in Service (PGI ) n. Material Condition (Useable, Broken, etc.) o. Status (e.g. In-use, In inventory, Storage) p. Contract Start Date q. Contract Expiration Date r. Contractor Address s. Contractor City t. Contractor State or Country Code u. Contractor Zip Code v. Contractor POC w. Contractor POC Phone Number x. GP Classification (DoD M AP2) y. Exhibit Line Item # for delivered CAP Block 10: (Frequency depends upon the selected management approach). Block 12: Initial submission will be (depends upon the selected management approach) from contract award. Block 13: Subsequent submissions will be every (depends upon the selected management approach) from previous submission. Final submission will be within (depends upon the selected management approach) days of contract completion/termination and shall include reutilization/disposition recommendations. (Insert program specific administrative instructions) 12. TOTAL G. PREPARED BY H. DATE I. APPROVED BY J. DATE DD FORM , FEB 2001 PREVIOUS EDITION MAY BE USED. Page _ of _ Pages

40 Attachment 2 - Sample CDRL - GFP and CAP CONTRACT DATA REQUIREMENTS LIST Form Approved The public reporting burden for this collection of information is estimated to average 110 hours per response, including the time for reviewing instructions, searching existing data sources, gathering and maintaining the data needed, and completing and reviewing the collection of information. Send comments regarding this burden estimate or any other aspect of this collection of information, including suggestions for reducing the burden, to the Department of Defense, Executive Services Directorate ( ). Respondents should be aware that notwithstanding any other provision of law, no person shall be subject to any penalty for failing to comply with a collection of information if it does not display a currently valid OMB control number. Please do not return your form to the above organization. Send completed form to the Government Issuing Contracting Officer for the Contract/PR No. listed in Block E. A. CONTRACT LINE ITEM NO. B. EXHIBIT C. CATEGORY: TDP TM OTHER D. SYSTEM/ITEM E. CONTRACT/PR NO. F. CONTRACTOR 1. DATA ITEM NO. 2. TITLE OF DATA ITEM 3.SUBTITLE Government Property Report GFP and CAP Reporting 4. AUTHORITY (Data Acquisition Document No.) 5. CONTRACT REFERENCE 6. REQUIRING OFFICE MGMT-Series DID 7. DD 250 REQ 9. DIST STATEMENT 10. FREQUENCY 12. DATE OF FIRST SUBMISSION 14. DISTRIBUTION LT REQUIRED See Block 16 See Block APP CODE 11. AS OF DATE 13. DATE OF SUBSEQUENT SUBMISSION a. ADDRESSEE b. COPIES D A See Block 16 Draft Reg Repro 16. REMARKS Contracting Officer 1 1 Property Admin. 1 1 COR/PM 1 1 The Contractor shall provide report that includes distinct sections for Government Furnished Property (GFP) and Contractor Acquired Property (CAP). The report shall be further detailed by Government Property classification (i.e. Equipment, Material, Special Test Equipment and Special Tooling). The report shall be delivered electronically in a spreadsheet using Microsoft Office Excel and in a structured order so that spreadsheet can be sorted and/or filtered. The GFP Report cannot be scanned or faxed. Abbreviations are not allowed. The CAP Report shall include the following fields: a. Contract 1. Number b. Contract Name c. Commercial/Government Entity Code (CAGE) d. Contractor DoDAAC (IAW AFI ) e. Serial Number (if applicable) f. UII (if applicable) g. Item Name(Nomenclature) h. Stock Number (NSN) i. Part Number j. Total Quantity k. Unit of Issue (e.g. EA, PR) l. Unit Acquisition Cost m. Date placed in Service (PGI ) n. Material Condition (Useable, Broken, etc.) o. Status (e.g. In-use, In inventory, Storage) p. Contract Start Date q. Contract Expiration Date r. Contractor Address s. Contractor City t. Contractor State or Country Code u. Contractor Zip Code v. Contractor POC w. Contractor POC Phone Number x. GP Classification (DoD M AP2) y. Exhibit Line Item # for delivered CAP Final Block 10: (Frequency depends upon the selected management approach). Block 12: Initial submission will be (depends upon the selected management approach) from contract award. Block 13: Subsequent submissions will be every (depends upon the selected management approach) from previous submission. Final submission will be within (depends upon the selected management approach) days of contract completion/termination and shall include reutilization/disposition recommendations. (Insert program specific administrative instructions) 12. TOTAL G. PREPARED BY H. DATE I. APPROVED BY J. DATE DD FORM , FEB 2001 PREVIOUS EDITION MAY BE USED. Page _ of _ Pages

41 Attachment 3 - Sample CLIN Structure - ELINs with CDRL Item Number Supplies/Services Qty Unit Unit Price Amount XXX1 DELIVERY OF CAP EQUIPMENT NSP This CLIN is for the delivery of Contractor Acquired Property (CAP) Equipment, as defined at FAR Once delivered and accepted by the Government, the Government assumes title and the items become GFP. All items meeting the IUID criteria of DFARS shall be marked and reported in the IUID registry upon delivery IAW DFARS In addition to the reporting requirements under exhibit XX99, all delivered CAP must be assigned an ELIN and delivered via irapt. FOB: Destination XXX2 DELIVERY OF CAP SPECIAL TOOLING (ST) NSP This CLIN is for the delivery of Contractor Acquired Property (CAP) Special Tooling (ST), as defined at FAR Once delivered and accepted by the Government, the Government assumes title and the items become GFP. All items meeting the IUID criteria of DFARS shall be marked and reported in the IUID registry upon delivery IAW DFARS In addition to the reporting requirements under exhibit XX99, all delivered CAP must be assigned an ELIN and delivered via irapt. FOB: Destination XXX3 DELIVERY OF CAP SPECIAL TEST EQUIPMENT (STE) NSP This CLIN is for the delivery of Contractor Acquired Property (CAP) Special Test Equipment (STE), as defined at FAR Once delivered and accepted by the Government, the Government assumes title and the items become GFP. All items meeting the IUID criteria of DFARS shall be marked and reported in the IUID registry upon delivery IAW DFARS In addition to the reporting requirements under exhibit XX99, all delivered CAP must be assigned an ELIN and delivered via irapt. FOB: Destination XXX4 DELIVERY OF CAP MATERIAL NSP This CLIN is for the delivery of Contractor Acquired Property (CAP) Material, as defined at FAR Once delivered and accepted by the Government, the Government assumes title and the items become GFP. All items meeting the IUID criteria of DFARS shall be marked and reported in the IUID registry upon delivery IAW DFARS In addition to the reporting requirements under exhibit XX99, all delivered CAP must be assigned an ELIN and delivered via irapt. FOB: Destination XXX5 CONTRACT DATA REQUIREMENTS LIST(S) CDRL(S) NSP Exhibit X FOB: Destination

42 Attachment 4 - Sample CLIN Structure - Sub CLINs without CDRL Item Number Supplies/Services Qty Unit Unit Price Amount XXX1 DELIVERY OF CAP EQUIPMENT NSP This CLIN is for the delivery of Contractor Acquired Property (CAP) classified as Equipment. Once delivered and accepted by the Government, the Government assumes title and the items become GFP. All items meeting the IUID criteria of DFARS shall be marked and reported in the IUID registry upon delivery IAW DFARS In addition to the reporting requirements under exhibit XX99, all delivered CAP must be assigned an ELIN and delivered via irapt. FOB: Destination XXX1AA SATCOM Terminal 10 EA $0.00 NSP Item Description/Nomenclature: TERMINAL,SATELLITE COMMUNICATION Type Designation: AN/FSC-78C(V)1 NSN: PIN: A Serial Number / (UII): D0NDM7A Original Unit Acquisition Cost: $5,000, Date Placed in Service by the Contractor: 15 Jun 2013 XXX1AB SATCOM Terminal 5 EA $0.00 NSP Item Description/Nomenclature: TERMINAL,SATELLITE COMMUNICATION Type Designation: AN/FSC-55A(V)4 NSN: PIN: A Serial Number / (UII): 2006 Original Unit Acquisition Cost: $1,000, Date Placed in Service by the Contractor: 10 Aug 2005

43 GLOSSARY 1. Accountable Property System of Record (APSR) 2. Acquisition Strategy Panel (ASP) 3. Air Force Equipment Management System (AFEMS) 4. Contractor Acquired Property (CAP) 5. Contract Data Requirements List (CDRL) 6. Contract Line item Number (CLIN) 7. DLA Logistics Management Standards 8. Department of Defense Activity Address Code (DODAAC) 9. Defense Procurement and Acquisition Policy (DPAP) 10. Electronic Data Access (EDA) 11. Federal Acquisition Regulation (FAR) 12. Government Furnished Equipment (GFE) 13. Government Furnished Property (GFP) 14. Integrated Product Team (IPT) 15. Invoices, Receipt, Acceptance and Property Transfer (IRAPT) 16. Loan Control Officer (LCO) 17. Logistics Management Specialist (LMS) 18. Material Control Activity (MCA) 19. Product Support Manager (PSM) 20. Program Manager (PM) 21. Request for Proposal (RFP) 22. Requisitioned Government Furnished Property (RGFP) 23. Scheduled Government Furnished Property (SGFP) 24. Wide Area Workflow (WAWF)

44 BY ORDER OF THE SECRETARY OF THE AIR FORCE AIR FORCE INSTRUCTION JUNE 2001 Supply EXCHANGE, SALE, OR TEMPORARY CUSTODY OF NONEXCESS PERSONAL PROPERTY COMPLIANCE WITH THIS PUBLICATION IS MANDATORY NOTICE: This publication is available digitally on the AFDPO/PP WWW site at: OPR: HQ USAF/ILSP (Ms Ruth A. Hill) Certified by: HQ USAF/ILS (Brig Gen Robert E. Mansfield, Jr.) Pages: 28 Distribution: F This instruction implements AFPD 23-1, Requirements and Stockage of Materiel, and AFPD 23-5, Reusing and Disposing of Materiel, by providing guidance and procedures for making nonexcess personal property available to programs authorized by legislation. Requirements contained in this instruction are derived from the Federal Property and Administrative Services Act of 1949, as amended, Title 40, United States Code, Section 471, and Department of Defense (DoD) R, DoD Materiel Management Regulation. This instruction does not apply to agreements to provide government furnished materiel (GFM) under a Federal Acquisition Regulation (FAR) government contract, grant, or cooperative agreement. It applies to all Air Force activities and the Air National Guard and US Air Force Reserve units or members. Notify HQ USAF/ILSP should this instruction conflict with other Air Force instructions or directives. HQ USAF/ILSP will review and approve all supplements prior to distribution. This is the initial publication of AFI It contains five sections: Each addressing a distinct program for supplying nonexcess personal property to non-federal activities. Section A contains policy and procedures for making replenishment spare parts available to domestic business concerns for design replication or modification. Section B, Section C, and Section D contain supply responsibilities and procedures for providing materiel to programs implemented by Scientific/Research and Development (61 series) and Contracting (64 series) publications. Section E identifies supply responsibilities for implementing leases to friendly foreign governments. Title 40 U.S.C. establishes responsibility and accountability for government property. All USAF personnel will use, manage, and protect government property IAW AFI Government personal property or equipment will not be sold, loaned, exchanged, donated, leased, or otherwise disposed of unless specifically authorized by law or regulation. The following sections address supply policy for making nonexcess personal property available to programs authorized by law.