NASA Procedural Requirements

NPR 4200.1H Effective Date: March 08, 2017 Expiration Date: June 08, 2024

Subject: NASA Equipment Management Procedural Requirements

Responsible Office: Office of Strategic Infrastructure

Chapter 3. Equipment Administrative Procedures

3.1 Purpose

3.1.1 This chapter sets forth the Agency's administrative requirements for establishing and maintaining the following:

a. Equipment Classification and Control.

b. Equipment Accountability.

c. Loan of NASA Equipment.

d. Property Pass to NASA Employees.

e. Utilization of NASA equipment.

f. Request to excess equipment.

3.2 Equipment Classification and Control

3.2.1 This paragraph outlines the classification and control requirements for NASA equipment. Figure 3-1 provides a logic pathway for determining the level of control to apply.

If the property is:
Figure 3-1. Equipment Classification and Control Determination

3.2.2 NASA Policy Directive 4200.1 requires Center Directors to implement NASA policy for managing Controlled Equipment. Additionally, NASA policy requires SEMOs to control each equipment system and the component parts of the system that meet the control criteria.

3.2.3 SEMOs or designees review invoice data provided with acquired equipment to determine the appropriate level of control IAW NASA policy requirements. Considerations and categories for establishing controls are provided in the following paragraphs.

3.2.3.1 SEMOs or designees shall ensure assignment of an Equipment Control Number (ECN) to equipment items meeting NASA definition for control when invoice data does not provide sufficient equipment information to manage and control NASA-held equipment in the NASA PP&E System.

3.2.3.2 SEMOs or designees shall enlist the assistance of technical personnel to identify and establish whether component equipment items meet any of the qualifications for control.

3.2.3.3 SEMOs or designees shall ensure NASA equipment categorized as Controlled Equipment, as described in the below paragraphs, are recorded in the NASA PP&E System with equipment category "N" (Controlled Equipment) and managed as prescribed in this NPR.

3.2.3.4. SEMOs or designees shall ensure equipment with an acquisition cost equal to or greater than (>) $5,000 or deemed sensitive as defined in Appendix C shall be recorded and managed in the PP&E System, including:

a. Fabricated Items. Constructed, manufactured, or fabricated equipment that, when complete, the cost of manufacture is equal or greater than $5,000 or sensitive, including model items that are fabricated for stationary or rotational display. The SEMO establishes equipment control when the configuration of a constructed item is complete by selecting Acquisition Code 10 - "Receipt from Fabrication" when entering the EMR data.

b. Loaned or Leased Equipment to NASA. The SEMO identifies equipment provided by an entity external to NASA and in NASA custody for more than 60 calendar days in the NASA PP&E System by selecting acquisition codes 09 (Loan in) or 08 (Lease in), respectively, in the EMR, except:

(1) Equipment under NASA-wide service contracts such as mobile devices, automated data processing (ADP) equipment, and cost-per-copy-service contracts.

(2) Equipment provided under seat service contracts, by which a service is acquired by the Agency, and the equipment is owned and managed by the contractor, incidental to the service.

(3) GSA vehicles leased to NASA. GSA-leased vehicles are accounted for in the NASA Fleet Management Information System (FMIS).

c. Spare components that are acquired for replacement of like component equipment items and do not lose their identity when put into use (e.g., radios or computers).

d. Furniture and furnishing items that cannot be modified or divided into individual components of lesser acquisition cost than $5,000 (e.g., executive desks or conference room tables).

e. NASA Controlled Equipment issued as IAGP to a contractor on a no-charge basis for use in the performance of a contract and is appropriately identified in the EMR. The following requirements apply to IAGP:

(1) IAGP will be utilized only within the physical confines of the NASA installation providing the property unless authorized by the Contracting Officer (CO).

(2) NASA 48 CFR 1852.245-71, when included in the contract, requires onsite contractors to observe and comply with this NPR.

(3) IAGP equipment item(s) will be identified by selecting the IAGP flag and recording the corresponding contract number in the EMR.

(4) NASA retains accountability and title to the equipment.

3.2.3.5 SEMOs or designees shall ensure categories of equipment considered "Controlled Equipment" with an acquisition cost less than $5,000 (previously listed) are managed as follows:

a. Rolling Stock - For equipment that requires assignment of a NASA license plate as Controlled Equipment:

(1) An ECN will be assigned and recorded in the NASA PP&E System prior to assignment of a NASA license plate.

(2) The EMR for rolling stock will include the vehicle identification number (VIN) and the assigned NASA license plate number.

b. Exhibit and Display Items - SEMOs or designees shall ensure NASA property identified as NASA artifacts, retired from program or mission use and retained for stationary or rotational display purposes as NASA Exhibit Items are controlled in NASA PP&E System. NASA exhibit and display items are identified by selecting the "NASA Exhibit Item" flag in the EMR.

c. Sensitive Items - are items that require exceptional physical security, protection, control, and accountability due to SBU and privacy protection, national security and export control regulations. These items can be pilferable or are potentially dangerous to the public.

(1) Sensitive items are listed in Appendix C of this NPR.

(2) The "Sensitive Item" flag will be selected to identify sensitive items in the EMR.

(3) SEMOs or designees shall ensure sensitive items are secured IAW NPR 1620.3 and report sensitive items as excess when no longer required.

(4) End Users provide the location and access to sensitive items for physical inventory purposes when required.

d. Gifts to NASA or to NASA employees. NASA may accept gifts without condition or restriction as authorized by the National Aeronautics and Space Act (Section 20113(d)). SEMOs or designees shall ensure domestic gifts meeting equipment control criteria are recorded and managed in the NASA PP&E System.

(1) SEMOs shall manage foreign gifts and decorations to NASA or its employees that are accepted and or retained for official business that exceed the minimal value at the time of acceptance or "Consumer Price Index Minimal Value," IAW FMR part 102-42.

(2) SEMOs or designees shall ensure the following in the NASA PP&E System for gifts meeting the Controlled Equipment criteria:

(a) Select Acquisition Code 23 (Receipt from Gifted to NASA) when creating the EMR for gifts.

(b) Identify gifts by selecting the "NASA Gifted Item" flag in the EMR.

e. Heritage Assets (HA) IAW NPR 9250.1, are NASA PP&E that is unique for its historical or natural significance or cultural, educational, or artistic (i.e., aesthetic) importance. Personal property identified as HA are to be recorded in the NASA PP&E System as Controlled Equipment, which is identified in the EMR by selecting the "Heritage" flag. The following responsibilities and attributes pertain to HA:

(1) Per NPR 8510.1, the Historical Preservation Officers (HPO) with assistance from Center Historians, Center Exhibit Managers, and the Headquarters Federal Preservation Officer (FPO) are responsible for identifying HA.

(2) HA may be a single item or consist of collection types, such as objects gathered and maintained for exhibition, (for example, museum collections, art collections, and library collections). NASA's HA are reported by the Office of the Chief Financial Officer (OCFO) in NASA's annual financial statement report to Congress.

(3) HA may be single use or multiuse. Single use HA are those assets that serve solely the heritage function. Assets that serve both heritage and operational functions are considered multiuse.

(4) During the routine SEMO and Property Accountant review and reconciliation of EMR/Asset Master Record Integration Report, the PA shall identify to the SEMO items that need the HA designation in the NASA PP&E System.

f. Classified Equipment. National security equipment control and management policy is prescribed by the Committee of National Security Systems Information (CNSSI). NASA invokes the CNSSI policy in NPRs 1600.2, 1600.6, and 1620.3.

(1) Communications Security Managers at each Center record, control, and inventory communications security equipment in a separate inventory management system.

(2) Communications Security equipment is very specialized and only obtained from approved sources. Transactions involving NASA Controlled Equipment is documented on a Standard Form (SF) 153. Completed SF 153s are classified documents and are maintained by the Center Communications Security Manager.

g. Aircraft. SEMOs or designees shall coordinate a routine review of aircraft assets with the Center Flight Operations Officer or designee to ensure accountability and proper recording of all aircraft acquisitions, status, excess reporting, and permanent modifications of aircraft in the NASA PP&E System.

(1) This review will be accomplished in support of physical inventory requirements outlined in Chapter 4 of this NPR. The review consists of the following:

(a) Update of aircraft equipment records in the NASA PP&E System (i.e., proper selection of "Parts Aircraft" flag in the EMR).

(b) Recording of the Federal Aviation Administration Registry Number or the NASA tail number of each aircraft in the "TechIdentNo." Field in the "Structure" tab of the EMR.

(c) Identification of aircraft in storage status (Detail status code 4) for proper recording in the NASA PP&E System.

(d) Coordinating the physical inventory of aircraft.

(e) SEMOs or designees shall request the Flight Operations Officer provide an NF 1617 for validation of equipment records for aircraft decommissioned to "Parts Aircraft."

h. SEMOs or designees shall ensure Flight Hardware meeting NASA criteria for control is recorded in NASA's PP&E System.

i. SEMOs or designees shall designate equipment items identified for control at the discretion of the SEMO, such as specialized shipping containers, in the NASA PP&E System with equipment category code "N" in the EMR.

(1) Items controlled at the SEMO's discretion will not be recorded as sensitive equipment unless approved by the Sensitive Items Review Board (SIRB) for inclusion in the NASA Sensitive Items List (Appendix C). SIRB procedures are found in Appendix D.

3.2.4 Administratively Controlled Equipment. Property not meeting the control requirements of paragraphs 3.2.3 is considered "Administratively Controlled."

3.2.4.1 SEMOs shall develop and establish internal procedures for all Center employees (e.g., Division Directors, PCs, or End Users) for managing Administratively Controlled Equipment.

3.2.4.2 The Equipment Manager processes Administratively Controlled Equipment with appropriate documentation after receipt and each item affixed with NF 1517 except when not physically or technologically feasible. NF 1517A is available for use on smaller items.

3.2.4.3 Administratively Controlled Equipment issued as IAGP to an onsite contractor shall be managed by the contractor IAW the requirements of NFS 1852.245-71.

3.2.5 NASA Equipment Control Number (ECN). The Equipment Manager assigns a unique identifier and singular ECN to Controlled Equipment, as described in Section 3.2.3. ECN tags have a format that is approved by NASA Headquarters.

3.2.5.1 ECN tags are to be replaced only by the Equipment Manager or designee when the tag of an item becomes unreadable, damaged, defaced, detached, or lost.

3.2.6 The ECN Register. The Equipment Manager shall establish and maintain a Center ECN register to manage and control the distribution of ECN tags by fiscal year. As a minimum, the register will include the ECN, the signature of person(s) accepting the blocks of tags, and the date the ECN was assigned.

3.2.7 Permanent Removal of ECN Tags and Other NASA Identification. The Equipment Manager in coordination with the Property Disposal Officer shall remove NASA ECN tags affixed to the equipment, including NASA forms 1517 and 1517A, "Property of NASA, U.S. Government" decals, when the equipment permanently leaves NASA custodial responsibility and NASA relinquishes title of the equipment.

3.2.7.1 The Equipment Manager shall also permanently remove the ECN tag when directed by the SEMO that an equipment item no longer meets NASA definition for control and does not require recording in the NASA PP&E System.

3.3 Equipment Accountability

3.3.1 Purpose. This section establishes requirements for maintaining equipment accountability providing a continuous audit trail of an item from its initial receipt by NASA until accepted at the Disposal Warehouse.

3.3.2 Establishing Equipment Accountability. Accountability of NASA equipment items begins when equipment is received; inspected; and accepted through purchase, lease, received from trade-in, or other methods, including transfer or fabrication.

3.3.3 Receipt and Inspection of Equipment. All equipment acquired for use by NASA and onsite contractors where title vest in the Government will undergo receipt processing and inspection.

3.3.3.1 Receipt of Equipment. There will be one central facility for receiving equipment.

a. The Center SEMO shall establish a single Central Receiving for the receipt, inspection, and establishing control of equipment items.

b. The Equipment Manager shall process all new equipment acquisition transactions, including credit card purchases, receipt of equipment resulting from Vendor Exchanges/Trade-ins, or acquisitions made by contractors as required by contract provisions at the Center's Central Receiving.

c. Purchase card holders and procurement officials shall utilize the address of Center Central Receiving as the delivery address for all property acquisitions, unless direct delivery to a desktop is previously authorized by the SEMO.

d. The SEMO is the approving official for request of direct deliveries to an End User's desktop or to a location other than the Central Receiving. When equipment is approved for direct delivery to an End User, the End User shall:

(1) Immediately notify Central Receiving personnel, the respective PC, or the Center Equipment Manager of the receipt of the equipment directly delivered to their location.

(2) Provide documentation supporting independent receipt and acceptance of equipment.

e. The Equipment Manager or designee shall ensure Department of Defense (DD) Form 250s, or equivalent acceptance documents for equipment delivered to NASA include the necessary equipment information for the creation of an EMR. Incomplete DD Form 250s will be referred to the corresponding procurement officer for correction.

3.3.3.2 Equipment acquired from or through the Excess Disposal Process. NASA organizations may screen and reutilize excess equipment offered by other NASA organizations or from other Federal agencies.

a. The PDO shall establish communications with the Center Equipment Manager to ensure they are made aware of reutilized excess equipment deliveries to Central Receiving for further issue to PCs or End Users or—when approved by the SEMO—issues or deliveries of equipment directly from the PDO to PCs or End Users.

b. Transfers or issue of equipment items from the disposal system are documented on an NF 894.

c. Upon receipt of either the equipment or the NF 894 (prior to issuing the equipment) from the PDO, the Center Equipment Manager shall assign ECN(s) to non-tagged equipment item(s) that meet NASA criteria for control, annotate the assigned ECNs on the approved NF 894, and return the NF 894 to the PDO to complete the transfer of the equipment to the NASA recipient.

d. Upon completion of the transfer, and after the custodian or End User has signed for acceptance of the equipment from the excess warehouse, the PDO shall provide a copy of the completed NF 894 to the Center Equipment Manager or designee.

e. The Center Equipment Manager or designee shall reactivate applicable inactive EMR(s) or create EMR(s) IAW Sections 3.2 and 3.3 of this NPR to establish classification, control, and accountability of the equipment in the NASA PP&E System.

f. To ensure continual accountability of Controlled Equipment, the Equipment Manager and the PDO shall frequently conduct a joint reconciliation of transfer actions to ensure that all equipment meeting NASA criteria for control and issued from the excess warehouse is recorded in the NASA PP&E System.

(1) Equipment not meeting the equipment control criteria will be managed IAW Section 3.2.4 of this NPR, Administratively Controlled Equipment.

3.3.3.3 Inspection of Equipment. A physical inspection of equipment items shall be performed by the Equipment Manager or designated personnel upon receipt and prior to acceptance of accountability and control. Personnel conducting the inspection will:

a. Inspect equipment for packaging integrity.

b. Validate that equipment physical description is consistent with the description in acquisition and accompanying shipping documentation.

c. Ensure that the quantities of equipment items match packing lists and shipping documents and are free of damages and defects.

d. Notify the property recipient of discrepancies found and initiate a GSA SF 364 or equivalent NASA Form when required.

3.3.4 Tagging NASA Equipment. Prior to delivery to the End User, Controlled Equipment are assigned an ECN and appropriately tagged as follows:

a. The Equipment Manager or designee shall affix the ECN tag in a visible place, preferably on the front of the item.

b. Equipment items that cannot be physically tagged due to form, fit, or function will be virtually tagged. Virtual tagging will be by exception only and accomplished by attaching the ECN tag on a printed copy of the item's EMR and including a picture of the item for inventory validation purposes.

(1) The SEMO is the NASA approving official to virtually tag equipment. Division Directors, or equivalent NASA officials, shall submit a written request for approval to the SEMO providing detailed justification to virtually tag the equipment and describing a suitable alternative to physically tagging the equipment. The "Virtually Tagged" flag must be selected in the EMR.

3.3.5 Equipment Cataloging. Equipment cataloging is the means to establish consistency in the equipment inventory database to enhance inventory management efforts and reutilization of equipment.

3.3.5.1 The Agency cataloging process is prescribed in NPR 4100.1. Equipment cataloging is part of the overall supply and material cataloging process.

3.3.6 Equipment Found on Station (FOS). The SEMO or designee shall take immediate action to establish control and accountability for equipment items found at the Center that meet NASA's criteria for control and are not recorded in the NASA PP&E System.

3.3.6.1 The SEMO is responsible for ensuring that an investigation is conducted to determine the root cause for the existence of equipment at the Center without established equipment control.

3.3.6.2 The End User or the person with the most knowledge of the circumstances surrounding the FOS shall initiate NF 1618 and process NF 1618 to document creation of the EMR in the NASA PP&E System.

3.3.6.3 The Equipment Manager or designee shall assign an ECN tag and use acquisition code 12 FOS for the creation of the EMR.

3.3.6.4 The SEMO or designee shall notify the Center Property Accountant when any FOS equipment items are identified that may require capitalization IAW NPR 9250.1.

3.3.6.5 The SEMO shall analyze all facts and findings surrounding FOS investigations and include a summary of FOS investigations in the annual report to the Center Director that includes developed corrective actions to prevent recurrence.

3.3.7 Accountability of Equipment Situated at Locations Other Than the Owning Center. The NASA Center that owns the equipment is responsible for equipment control and accountability, regardless of physical location of the equipment and until proper transfer of control and accountability is executed using NF 894.

3.3.8 Accountability of Equipment Delivered to a Non-Funding Center. Occasionally, NASA's mission requires a Center to fund and procure equipment with instructions to the vendor to ship the equipment to other NASA Centers. Equipment transfer transactions will be processed using NF 894, IAW section 3.3.9 of this NPR for the continued accountability and management of equipment. The involvement and management oversight from corresponding SEMOs is required as follows:

a. The SEMO of the Center receiving the equipment is responsible for the security and safeguarding of equipment.

b. The SEMO of the funding Center shall provide all available acquisition information to the SEMO of the receiving Center for proper inspection and acceptance of the equipment.

c. Upon receipt of the equipment, the receiving SEMO shall immediately notify and provide a copy of all shipping, receipt, and inspection documentation to the SEMO of the funding Center.

d. The SEMO of the funding Center or designee shall create an EMR and establish equipment accountability IAW section 3.3 of this NPR.

e. When the funding and procuring Centers differ, the SEMO of the procuring Center shall provide all available acquisition information to the SEMO of the funding Center for creating the EMR in the NASA PP&E System.

3.3.9 Transfer of Equipment between NASA Centers.

3.3.9.1 The approving authority for the transfer of equipment is the Division Director or equivalent NASA official of the organization owning the equipment.

3.3.9.2 Division Directors or equivalent NASA officials agree to transfer control and accountability of equipment for a specific purpose.

3.3.9.3 Transfers of equipment accountability and responsibility between NASA Centers is documented on NF 894.

3.3.9.4 Processing the NF 894 and the shipment of equipment will be coordinated with the SEMO for logistical support prior to physical movement of equipment to ensure that equipment records are properly updated in the NASA PP&E System.

3.3.9.5 The transfer is coordinated between the SEMOs of both, the owning and gaining Centers.

3.3.9.6 Controlled Equipment transferred between NASA organizations retains its assigned ECN and established EMR.

3.3.9.7 For the Center transferring the equipment:

a. The Division Director or designee shall initiate the NF 894.

b. The Equipment Manager shall initiate an equipment transfer transaction in the NASA PP&E System.

c. The SEMO or designee shall ship the equipment and provide a copy of the NF 894 to the SEMO of the gaining Center.

3.3.9.8 For the Center gaining the equipment:

a. The Equipment Manager or designee shall process received equipment IAW Section 3.3 of this NPR.

b. The SEMO shall obtain signature from the Division Director or program/project manager or designee accepting the equipment.

c. The Equipment Manager shall complete the equipment transfer transaction in the NASA PP&E System within three business days of receipt.

d. The SEMO or designee shall return a completed NF 894 to the "losing" Center Equipment Manager within three business days of acceptance in the NASA PP&E System. See Figure 3-2.

Figure 3-2 Transfer of Equipment Accountability between NASA Centers

3.3.10 Equipment Transferred From Other Federal Agencies.

3.3.10.1 Transfers of equipment from other Federal agencies requires the approval of the General Services Administration (GSA) IAW 41 CFR pt. 102-36 and NPR 4300.1.

3.3.10.2 The Division Director or designee shall coordinate with the Center SEMO for logistical support and ensure equipment accountability.

3.3.10.3 Upon receipt and acceptance, the Center Equipment Manager shall process equipment IAW (IAW) Sections 3.2 through 3.3 of this NPR.

3.3.11 Control of Equipment Loaned or Leased to NASA.

3.3.11.1 The head of the NASA organization accepting equipment on lease or on loan to NASA shall have a written agreement drafted by the lending or leasing organization clearly stating the purpose and the period of the loan or lease, including any associated cost, mode of transportation, and liability factors.

3.3.11.2 The head of the organization or designee shall submit the draft agreement document governing the loan or lease of the equipment to the Office of Chief Counsel (OCC) for review and concurrence before accepting or taking custody of the equipment.

3.3.11.3 Equipment loaned or leased to NASA for more than 60 calendar days and meeting NASA criteria for control is processed and recorded by the SEMO in the NASA PP&E System IAW Sections 3.2 through 3.3 of this NPR.

3.3.11.4 Leased to Purchase Equipment. The ECN tag should not be replaced when NASA obtains title of a leased item. The Equipment Manager is responsible to update the acquisition method in the EMR from "Lease in (Code 08)" to a "Lease to a Purchase (Code 21)" transaction in the NASA PP&E System.

3.3.12 Unconditional Equipment Donations to NASA from Entities Other Than Federal Agencies. NASA organizations may accept unsolicited and unconditional donations of property from external entities (e.g., private industry and academia) only if the external entity provides a written statement to the Center indicating that the donation is unconditional.

3.3.12.1 The written statement from the external entity needs to clearly list the equipment being donated, including item description, manufacturer, model number, serial number, and fair market value. This information will be used by the Equipment Manager to create the EMR for equipment meeting NASA criteria for control.

3.3.12.2 The Division Director or equivalent NASA official head of the NASA organization accepting the donation shall consult the OCC to review all associated documentation to ensure acceptability of terms and conditions of the donation before the organization's acceptance of the equipment.

3.3.12.3 Upon concurrence from OCC, the Division Director or equivalent NASA official head of the NASA organization accepting the donation shall notify the external entity that they may release the equipment to NASA.

3.3.12.4 Upon receipt and acceptance, the Center Equipment Manager shall process equipment IAW sections 3.2 through 3.3 of this NPR.

3.3.13 Removal of equipment from the Center for repair under the terms of the warranty.

3.3.13.1 The Center maintains control and accountability of equipment that is removed from the Center for repair, calibration, or maintenance under the terms of the acquired warranty.

3.3.13.2 The SEMO or designee shall update the status of the equipment in the NASA PP&E System by selecting "Detail code 3 - Repair."

3.3.13.3 Applicable transportation/shipping documents and work order requests are used to document the status and physical location of the equipment while the equipment is in maintenance and during the annual physical inventory campaign for record validation.

3.3.13.4 ECN tags, including NF 1517 and NF 1517A, are not to be removed from the equipment.

3.3.13.5 The SEMO or designee shall update the status of the equipment in the NASA PP&E System upon validation of return of the equipment to the Center.

3.3.14 Deactivation of the EMR in the NASA PP&E System.

3.3.14.1 Deactivation of the EMR in the NASA PP&E System is primarily processed by the Equipment Manager. The following are the authorized deactivation transactions in the NASA PP&E System:

a. Resulting from vendor exchange/trade-in of NASA equipment.

b. Approved complete equipment cannibalization/modification.

c. GFP/GFE to a contractor.

d. Returned leased-in or loaned-in equipment to the owner commercial organization.

e. Lost, missing, or stolen equipment.

f. Transfer of equipment accountability to entities outside NASA.

g. Transfer of equipment accountability to Real Property.

3.3.14.2 Vendor Exchanges/Trade-in of NASA Equipment. Vendors selling equipment to NASA may accept used equipment, regardless of condition, for trade-in against the purchase of new equipment; however, Federal agencies are prohibited by the FMR Subchapter B, part 102-39.45 from exchanging some types of property.

a. NASA organizations shall not offer NASA-owned equipment to a vendor as a trade-in to reduce the cost of a leasing arrangement.

b. The following conditions need to be met to trade in old equipment for new equipment:

(1) Trade-ins can only be made for equipment items of a similar nature. Items are considered similar when both fall within a single Federal Supply Classification Group. For instance, equipment in FSC Group 66 (scientific equipment) may apply toward the acquisition of other equipment in FSC Group 66.

(2) The equipment to be traded in is NASA-owned, is not excess to the organization, and the organization has a continuing need for the type of equipment.

(3) The number of equipment items acquired will equal the number of items traded-in unless either:

(a) The equipment item(s) acquired performs all or substantially all of the tasks for which the item(s) traded-in would otherwise be used.

(b) The equipment item(s) acquired and the item(s) traded-in meet the test for similarity specified in 41 CFR102-39.20 that they are a part(s) or container(s) for identical or similar end items.

(4) The equipment to be traded in is not to be acquired for the principal purpose of trade-in.

(5) The Division Director, equivalent NASA official, or designee shall document at the time of trade-in (or at the time of acquiring the replacement equipment if it precedes the trade-in) that the trade-in allowance or proceeds will be applied to the acquisition of replacement equipment.

(6) The Division Director, equivalent NASA official, or designee shall provide procurement documents to the Equipment Manager to process the trade-in equipment transaction IAW Sections 3.2 through 3.3 of this directive.

3.3.14.3 Cannibalization or Modification of NASA Equipment. NASA equipment may be modified to configure the item for a similar purpose, or inoperable equipment may be disassembled and cannibalized for use of serviceable parts, components, or assemblies as replacement parts in useable equipment or for fabricating another equipment item.

a. Cannibalization of NASA equipment will be documented using NF 1617.

(1) The requester shall initiate an NF 1617 and include a justification clearly stating the NASA mission requirement satisfied by the cannibalization/modification of NASA equipment.

(2) The owning Division Director or equivalent NASA official is the reviewing and approving official for cannibalization/modification of NASA-held equipment.

(3) The NF 1617 is reviewed for concurrence by the SEMO prior to the cannibalization/modification of the equipment.

(4) The EMR will remain active until residue of cannibalized equipment is reported as excess and accepted in the Disposal Warehouse.

b. Modifications of NASA equipment is documented using NF 1617.

(1) The End User of the equipment completes an NF 1617 to document the resulting equipment configuration and cost changes. The NF 1617 is submitted to the PC for review and approval by the Division Director or equivalent NASA official and submission to the SEMO.

(2) The SEMO or designee shall:

(a) Review the NF 1617 for completeness ensuring that appropriate item description, cost adjustments and justification for the modified equipment are included.

(b) Determine the requirement to deactivate the original EMR with "Inactivation Reason Code 73 - Delete Resulting from Assembly/Disassembly" when the item underwent a configuration change that resulted in a different item model, different serial number, or loss of equipment identity.

(c) Process the newly configured equipment item resulting from modifications or incorporation of fabricated parts components and assemblies, with a new ECN tag and create an EMR with "Acquisition Code 11 - Receipt from Assembly or Disassembly" for the proper update of equipment records in the NASA PP&E System.

3.3.14.4 Government Furnished Property/Equipment (GFP/GFE). The Center responsible for the administration of a contract is responsible for accountability of the equipment furnished under the contract.

a. Issue of GFP/GFE to a contractor. The following procedural requirements are to be followed when issuing NASA-held equipment as GFP/GFE to a contractor:

(1) Per NPR 4500.1, NASA equipment issued to a contractor will be documented on contract documents regulated by the FAR and NFS and approved by the CO.

(2) The CO or designee is the NASA reviewing and approving authority of NF 894 when issuing GFP/GFE to a contractor.

(3) The CO or designee shall provide copies of contract documents to the SEMO to support record update in the NASA PP&E System.

(4) The Equipment Manager in coordination with the corresponding Property Administrator (PA) shall prepare an NF 894 as a transfer of accountability document to the contractor.

(5) Equipment Control Tags, including NASA forms 1517 and 1517a, "Property of NASA, U.S. Government" decals attached to equipment issued to contractors are not to be removed from the equipment.

(6) The CO or designee shall obtain contractor signatures on NF 894 and provide to the SEMO and IPO.

(7) Upon receipt of the completed (signed) NF 894 from the contractor, the CO or designee shall provide copies to the SEMO or designee to record GFP/GFE equipment in the NASA PP&E System. The SEMO or designee shall make the EMR record inactive in the NASA PP&E System by processing Inactive Reason Code 67 - "Transfer of Government Furnished Equipment (GFE) to a Contractor," and identifying the applicable contract number.

b. Return of GFP/GFE from a Contractor. At the end of a contract and upon completion of required screening of equipment, some equipment may be retained by a NASA Center and accounted for as follows:

(1) Reutilize the equipment for the performance of work at the Center; in which case:

(a) Per NPR 4500.1, the CO or designee shall coordinate the physical transfer of the equipment with the SEMO.

(b) Upon receipt and acceptance of the equipment, the Center Equipment Manager shall reactivate the EMR with acquisition method 06 - "Receipt by Transfer - From Contractor," and record the equipment in the corresponding property custodial account.

(c) When the equipment was acquired by the contractor and does not have an assigned ECN or EMR, the SEMO shall proceed IAW section 3.2 through 3.3 of this NPR.

(2) Returned GFP/GFE equipment may be reassigned from one contractor to a different contractor at the Center, in which case:

(a) The CO or designee shall coordinate the physical transfer of the equipment with the SEMO.

(b) The Equipment Manager shall reactivate equipment to document in the PP&E System that the equipment was returned to NASA's control.

(a) The EMR for the equipment shall be made inactive by the Equipment Manager with Inactive Reason Code 67 - "Transfer of Government Furnished Equipment (GFE) to a Contractor" to the succeeding contractor.

(3) Reassign the returned equipment to a different Center for subsequent issue to a contractor, in which case:

(a) The CO or designee shall coordinate the physical transfer of the equipment with the SEMO.

(b) The Center Equipment Manager shall reactivate equipment to document in the NASA PP&E System that the equipment was returned to NASA's control.

(c) The transfer of equipment to another Center shall be processed by the Equipment Manager IAW Section 3.3.9 of this NPR.

(d) The EMR for the equipment is made inactive by the Equipment Manager with Inactive Reason Code 67 - "Transfer of Government Furnished Equipment (GFE) to a Contractor" to the succeeding contractor.

3.3.14.5 Returned Leased or Loaned Equipment to the Owner Commercial Organization. When the loan or lease of equipment to NASA nears expiration, the Equipment Manager shall initiate a transaction in the NASA PP&E System to properly document the timely return of the equipment to the owner commercial organization and to follow the terms of the applicable contract. The following procedures apply:

a. The PC shall prepare NF 894 to document the transfer.

b. The leasing contract official or the NASA official that initiated the loan of equipment shall approve NF 894 for the return of equipment.

c. The custodian shall include all documentation that was provided by the loaner/leaser when the equipment was delivered and accepted by NASA. The documents will be forwarded to the SEMO or designee for approval and processed through the Center's Central Receiving.

d. The PC shall coordinate delivery of the equipment to the Center's Central Receiving or follow Center procedures for shipment. A copy of the completed NF 894 that includes the effective date of the shipment will be forwarded to Equipment Manager for processing in the NASA PP&E System for inactivation of the EMR with "Inactivation Reason Code 69 - Lease-in Returned," or "Inactivation Reason Code 70 - Loan-In Returned."

3.3.14.6 Lost, Missing, Stolen, Damaged, or Destroyed Equipment. When NASA equipment is lost, damaged, destroyed, or stolen, the End User, the PC, or the person with the most knowledge surrounding the circumstances for the loss shall initiate a Property Survey Report, NF 598, for NASA officials to investigate and review pertinent facts, adjust the EMR status in the NASA PP&E System, and determine the extent of individual responsibility.

a. The EMR for damaged or destroyed equipment when there is residue is not to be made inactive from the NASA PP&E System upon assignment of a survey investigation number.

b. Apply the appropriate detail status code for damaged but repairable items.

c. Apply the appropriate Inactive Reason Code for destroyed items with no residue, lost, or missing.

d. The acquisition cost is not to be adjusted if the equipment is fully repaired.

e. Apply the appropriate Inactivation Reason Code if the item is lost or destroyed in orbit.

3.3.14.7 Transfer of Equipment Accountability to Entities outside NASA. Transfer of equipment accountability to entities outside NASA is predominantly a disposal transaction and is addressed in NPR 4300.1.

3.3.14.8 Transfer of Equipment Accountability to Real Property. Transfer of Controlled Equipment to real property results from the affixing or making equipment part of the structure of a NASA facility. In such case, personal property transitions into related personal property, which is governed by NPR 8800.15, Real Estate Management Program. Process the transfer of accountability of personal property to Real Property with "Inactivation Reason Code 86 - Transfer to Real Property."

3.3.15 Reconciliation of EMRs against Asset Master Records (AMR).

3.3.15.1 The SEMO shall assist the Center OCFO Property Accountant (OCFO/PA) by conducting a joint review of the EMR/AMR Integration Report with the Property Accountant to reach data reconciliation of capital equipment.

a. The SEMO shall:

(1) Meet with the OCFO/PA with a frequency agreed to by both parties provided that 100 percent reconciliation is achieved before the end of the fiscal year, preparatory to annual fiscal audit.

(2) Ensure that EMRs of NASA-held equipment having a corresponding AMR in the financial system are inventoried each fiscal year IAW Chapter 4 of this NPR.

(3) Ensure that all additions and deletions of EMRs of NASA-held equipment with an acquisition meeting the capitalization threshold that occurred throughout the fiscal year are reported to the PA.

(4) Inform the PA of any retag, modifications to, or cannibalization of capital equipment since the last reconciliation meeting.

3.3.16 Equipment in Storage.

3.3.16.1 The nature of NASA operations occasionally makes it desirable for Division Directors or equivalent NASA officials to retain unused equipment to fulfill a specific NASA firm future requirement instead of disposing through the excess process. Equipment may be retained by the Division Director of a NASA organization under the following conditions:

a. The requestor shall provide a justification to the Division Director.

b. The period of storage will be finite and must not exceed five years.

c. The request is approved by the Division Director.

d. Equipment identified for storage will be reported to the SEMO for processing IAW Center storage requirements.

e. The SEMO or designee shall ensure:

(1) Equipment accountability continues under the assigned property custodial account.

(2) The NASA PP&E System is updated to reflect the detail status code 4 ("in storage") of the equipment with the corresponding location identification.

(3) The physical inventory of all equipment in storage is executed IAW Chapter 4 of this directive.

f. The need to extend equipment storage beyond the initial storage period is revalidated by the Division Director of the owning organization and approved by the next higher level of management.

g. The NASA official at the next higher level of management shall provide approved extensions to the SEMO for record update in the NASA PP&E System.

h. The retention of equipment in storage for emergency operations is designated by the Center Director or designee.

3.4 Loan of NASA Equipment

3.4.1 The following paragraphs provide the authority, requirements, responsibilities, and procedures for executing and the managing NASA equipment loans.

3.4.1.1 The following requirements apply to all equipment loans:

a. Equipment loans will be documented and processed using NF 893, Loan of NASA Equipment, except as prescribed in section 3.5 of this directive.

b. Any NASA employee receiving a loan request for NASA equipment shall refer the request to the corresponding Division Director or equivalent NASA official.

c. NASA employees endorsing the loan shall provide a written justification on NF 893 clearly explaining the NASA mission requirement satisfied by the loan.

d. The NASA organization proposing the loan is responsible for creating and gaining approval for any loan or loan extension prior to the movement of equipment to a loan recipient.

e. The Division Director or equivalent NASA official is the approving official for the loan of NASA equipment and shall certify that the equipment is released without adversely affecting Center mission requirements.

f. The Division Director or equivalent NASA official shall ensure equipment is returned to NASA IAW the terms of the loan agreement.

g. Equipment that is not needed by a NASA custodial organization is not to be retained solely for the purpose of a loan. Equipment that is no longer required by the organization needs to be reported as excess IAW Section 3.7 of this directive.

h. NASA organizations will not issue indefinite loans or loan NASA equipment for an undetermined loan period or series of consecutive loans of the same equipment to the same recipient.

i. The period of the loan is to be clearly defined and not exceed four years.

j. A loan extension may be granted for a period not exceeding one year.

(1) A loan may be extended no more than two times.

(2) Each loan extension is approved by the next higher level of management within the organization.

k. Equipment loans in support of Space Act Agreements may exceed the four-year limit; however, the loan term will be a finite period of time.

l. Requests for modifications to approved loans may be made at the discretion of the SEMO and are approved by all signers of the completed NF 893, and any additional reviewers deemed necessary by the SEMO, before the equipment is loaned.

m. The NASA organization proposing the loan retains official accountability for the equipment on loan, and the Division Director or designee owning the equipment shall ensure receipt of annual inventory reports from the borrower.

n. The Equipment Manager or designee shall record the date of the annual validation as the "date of last inventory" in the NASA PP&E System for record validation during the physical inventory campaign.

o. Loan requests are processed and executed through the Center SEMO for oversight, logistical support, and the proper adjustment of NASA PP&E records.

p. The SEMO shall ensure that, for each loan agreement, a case file is established containing appropriate copies of authorizing agreements and all other pertinent supporting documentation.

q. The borrower acquires no rights to the equipment. The borrower does not have title to the property and is responsible for the care and return of the property in its loaned form. All supporting documentation of loaned equipment is maintained by the lending PC.

r. NASA officials shall not authorize use of the equipment for other than the original intent of the loan agreement without reinitiating the formal loan process for review and approval.

s. The Equipment Manager shall generate a monthly "Out Status Expiration Report" from the NASA PP&E System to monitor equipment return dates and initiate appropriate actions to request the return of the equipment.

3.4.1.2 In addition to the above requirements, the following apply to loans made external to NASA:

a. The NF 893 is reviewed for legal sufficiency by the OCC or the Office of the General Counsel (OGC).

b. The organization borrowing NASA equipment is responsible to bear all costs associated with the return of equipment to NASA such as disassembly, assembly, handling, and shipping the equipment to the original location at which the equipment was held by NASA or to other locations as agreed between the parties.

c. NASA reserves the right to recall, for its own use or the use of another, the equipment provided on a loan agreement or to withdraw the recipient's authority to use the property at NASA's sole discretion.

d. NF 893s for loans to foreign governments or organizations are reviewed and concurred with by the corresponding Center Export Administrator (CEA) or the Office of International and Interagency Relations (OIIR) to comply with export control requirements and export authority IAW NPR 2190.1.

3.4.2 Requirements for loans between NASA Organizations. The nature of NASA operations and cost-savings initiatives occasionally make it desirable to loan equipment, including program equipment, among NASA Centers.

3.4.2.1 Policy requirements outlined in Section 3.4.1.1 apply.

3.4.2.2 The Equipment Manager of the Center loaning the equipment to another Center shall change the location information and "Detail Status" of the equipment in the NASA PP&E System to reflect the equipment is in a "Loan-Out-Center Loan."

3.4.2.3 Upon return of the equipment, the Equipment Manager shall update the Detail Status and location of the equipment in the NASA PP&E System.

3.4.3 Loans to Private Individuals and Organizations outside NASA.

3.4.3.1 NASA officials will exercise care in the execution of loan agreements and other instruments to ensure that equipment is being used in support of official NASA activities.

3.4.3.2 Policy requirements outlined in Section 3.4.1 apply.

3.4.3.3 NASA organizations may loan NASA-held equipment to:

a. Private Individuals and entities provided that the loan is in the best interest of the Government and the equipment is unique to NASA. NASA equipment that is commercially available will not be loaned to private individuals and entities unless the equipment is needed in an emergency to either protect public safety or health or to preserve other public property.

b. Other Federal agencies, provided the loan is in the public interest.

c. Nonprofit institutions and educational institutions for research purposes. The approving official shall certify that the equipment will be used to satisfy a NASA mission requirement and will not be used by the individual or entity on a Government contract.

3.4.4 Loan of NASA Equipment in Support of Special Programs.

3.4.4.1 Purpose. This section sets forth equipment policies and procedures necessary to support special programs sponsored by NASA. Policy requirements outlined in Section 3.4.1 apply.

a. Small Business Innovation Research (SBIR) Program. Special provisions for equipment loans will be implemented by NASA to comply with 15 U.S.C. § 638.

(1) The SBIR program can either loan or transfer property to eligible organizations and is a three-phase process: A feasibility study phase (phase 1); a proposal development phase (phase 2); and a commitment phase (phase 3). Property may only be loaned in the third phase of the process.

(2) A loan of equipment to a small business is authorized when it is not cost effective to NASA to permit retention and title transfer to the small business.

(3) Equipment loans are requested by the CO and executed by the SEMO to include the following special provisions:

(a) Loans under the SBIR program shall be authorized and approved by the Center Director or designee.

(b) The provisions of this section supplement any additional existing loan provisions.

(c) Accountability of NASA equipment and the processing of loans is administered IAW the provisions of NPD 4200.1 and this NPR.

b. High Performance Computing and Communications (HPCC) Program. Special provisions regarding equipment loans will be implemented by the Agency to comply with the 15 U.S.C. §5501 et seq. Schools participating in the 15 U.S.C. § 5501 et seq. program receive special consideration relating to Government property.

(1) The acquisition of equipment for the purpose of loans to K–12 schools is permitted IAW the 15 U.S.C. § 5501 et seq.

(2) Loan agreements for 15 U.S.C. § 5501 et seq. activities are requested by participating schools and need to include the following special provisions:

(a) The loan of NASA equipment needs to be coordinated with the Center HPCC organization and the OCC.

(b) The provisions of this section apply to the 15 U.S.C. § 5501 et seq. program in lieu of existing loan provisions. Accountability and control aspects of the loans will be administered IAW the provisions of NPR 5800.1.

3.4.5 Loans to Government and Non-Government Organizations. NASA equipment may be loaned to Government and non-Government organizations, private individuals, corporations, or other entities, provided the loan is in the public interest and meets the following criteria:

a. Policy requirements outlined in Section 3.4.1 apply.

b. The borrower has both the facilities and capability to secure and safely operate the equipment, including the submission of training and certifications to operate the equipment.

c. The loan benefits the Government.

d. The equipment is not to be modified (if modifications are required, these are reviewed and approved by the Division Director or equivalent NASA official).

3.4.6 Loans to For-Profit Organizations. NASA equipment is available to profit-making organizations IAW the Space Act and specified in the loan agreement.

3.4.6.1 Policy requirements outlined in Section 3.4.1 apply.

3.4.6.2 Equipment loans to for-profit organization are authorized and approved by the Center Director or designee.

3.5 Property Pass to NASA Employees

3.5.1 NASA equipment may be issued, "on pass," to employees to use in support of telework agreements or official travel when considered by the responsible Division Director or equivalent NASA official to be necessary and essential to maintain the productivity and continuity of NASA's mission.

3.5.2 An NF 892, is required for NASA equipment to be removed from a NASA Center or satellite offices. The policy guidelines for using the NF 892 follows:

a. An NF 892 is used to document property passes to NASA Civil Service employees for a period not to exceed 180 calendar days, including extensions.

b. An NF 892 will be used to document property passes to onsite contractor employees for up to 30 calendar days, including extensions, to conduct offsite work with the approval of the respective CO.

c. An NF 892 is not to be used beyond 30 calendar days when contract provisions indicate that the work shall be performed onsite.

d. An NF 892 outlines the responsibilities of the employee with regard to the proper care and handling of the equipment and clearly states that the employee is subject to disciplinary action or financial liability resulting from the loss, damage, destruction, or theft of the property if negligence or wanton or willful misconduct is proven.

3.5.3 NF 892s are administered as follows:

a. The requester shall complete and submit the NF 892 to the supervisor and PC for signature and subsequent approval by the Division Director prior to the removal of the equipment from the NASA installation.

b. At least three copies of the NF 892 will be processed. The employee shall keep one copy with the equipment at all times, one copy shall be provided to the Center Equipment Manager, and one copy will be kept by the corresponding PC.

c. The NF 892 needs to include the requestor's name and organization identification and the purpose for use and removal of the equipment, clearly explaining why the official use cannot be accomplished onsite during normal business hours.

d. The Division Director shall certify on the NF 892 that removal of the property by the employee does not adversely affect the performance of official duties in the organization and that the equipment on pass is not excess equipment.

e. For onsite contractors, the corresponding CO shall concur in removal of equipment from NASA installations.

f. Property pass requests exceeding time limitation periods shall be reviewed and approved by the SEMO.

g. A completed copy of the NF 892 is retained by the corresponding PC for the duration of the loan period and destroyed when the return of the equipment to NASA has been verified.

h. The Equipment Manager shall make the appropriate entry in the EMR to reflect the property "on pass" and indicate Out Status as a "Property Pass to employee" in the NASA PP&E System.

i. Employees are required to return equipment "on pass" to the originating activity for scheduled inventory purposes. If the employee is on travel at the time of the inventory campaign, the equipment is to be inventoried before departure or upon the employee's return to the originating activity.

j. The approved NF 892 shall be produced by PCs upon request during the physical inventory campaign to validate equipment records for unsighted equipment when the equipment is being utilized on official travel.

k. The End User shall return NASA equipment to NASA when the specified purpose for the pass is no longer valid or by the end of the approved pass period, whichever is earlier.

l. Requests for extension of the property pass to Civil Servant employees shall be reviewed and approved by the Division Director or equivalent NASA official. Extensions will also be approved by the SEMO when the extension increases the pass period beyond 180 calendar days.

m. Requests for extension of the property pass to contractor employees shall be reviewed and approved by the CO.

n. The requester shall notify the corresponding PC when the equipment is returned to the NASA organization owning the equipment.

o. The PC shall validate equipment returned to the organization and notify the Equipment Manager for the proper update of equipment records in the NASA PP&E System.

p. Loss, damage, or destruction of Government equipment will be processed IAW Chapter 5 of this NPR.

3.6 Utilization of NASA Equipment

3.6.1 Purpose. This section establishes requirements for the use, custody, care, and reporting of Controlled Equipment by custodial organizations.

3.6.2 Property Management Areas. Designated PCs shall ensure that effective management controls are in place for the areas where Controlled Equipment is maintained. The SEMO is required to establish a property custodial account number for each area. The custodian account number identifies all Controlled Equipment assigned within the area for which the management of the user organization is responsible.

3.6.3 Assignment and Responsibilities of PCs. A PC shall be designated in writing by the corresponding Division Director outlining applicable responsibilities for each defined property management area.

3.6.4 Assignment of Equipment to End Users by PCs.

3.6.4.1 End Users receive a system-generated e-mail notifying them of the equipment assignment and requesting their acceptance or rejection of the assignment in the equipment database. End Users shall accept or reject the equipment assignment in the EQUIPMENT System,

3.6.4.2 The assigned user shall accept responsibility for stewardship of the equipment entrusted to their use and care.

3.6.4.3 Liability generally begins with and is derived from EO 12731 of 17 October 1990, which states, "Employees shall protect and conserve Federal property and shall not use it for other than authorized activities."

3.6.4.4 End Users shall not delegate the requirement to accept property in the equipment database.

3.6.4.5 The equipment user shall utilize EQUIPMENT (the Web-based front end of the NASA PP&E System) to update equipment records or report any changes of status, location, or user to the responsible PC.

3.6.4.6 The EQUIPMENT System, a Web-based front end of the NASA PP&E System, provides End Users the ability to:

a. Comply with the requirement to accept or reject receipt for equipment and to cancel a pending property action.

b. View assigned equipment and related transaction history.

c. Update location of the equipment.

d. Generate a property pass.

e. Request the replacement of unreadable, damaged, defaced, detached, or lost ECN tags.

f. Initiate excess request of controlled and Administratively Controlled Equipment.

3.7 Request to Excess Equipment

3.7.1 NASA employees are responsible for the continued evaluation of serviceability and need of NASA equipment for the execution of their functions, program, or project, including equipment items located within their areas of operation. Employees shall identify and initiate request for excess reports for equipment no longer needed for operational purposes, obsolete or damaged equipment, equipment beyond repair, and property identified as potential NASA artifacts.

3.7.2 The request for excess of equipment needs to meet the requirements outlined in Chapter 3 of NPR 4300.1.

3.7.3 The excess report initiated by End Users shall be validated by the respective PC.

3.7.4 The End User or PC shall report equipment meeting NASA criteria for control and reported as excess by ECN in the EQUIPMENT system.

3.7.5 The End User or PC shall report Administratively Controlled Equipment identified as excess to the Center PDO through the EQUIPMENT system "Initiate Administratively Controlled Excess Request."

3.7.6 Equipment reported as excess will remain in the property custodial account until accepted in the disposal system and be safeguarded until personnel from the excess warehouse take physical custody of the equipment.

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