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 5. Property Survey Process for Lost, Damaged, Destroyed, or Stolen Government Property

5.1 Purpose

5.1.1 This chapter provides the administrative and procedural requirements to account for lost, damaged, destroyed, or stolen Government property.

5.1.2 The property survey process is an administrative action whereby the loss, damage, destruction, or theft of Government personal property, including equipment and supplies and materials, is documented, reviewed, and investigated for the purpose of adjusting NASA property records, when applicable, and determining whether recommendation for financial liability, personnel action, or both is necessary against an individual(s). The property survey process also serves to review and provide recommendations for:

a. Damages or losses of Government property resulting from vehicle accidents. A NASA transportation asset is NASA equipment.

b. Developing corrective action when there are repetitive or significant cumulative losses, including losses of Administratively Controlled Equipment.

5.2 Applicability

5.2.1 This chapter is applicable to:

5.2.1.1 Personal property at NASA Headquarters, NASA Centers, and subinstallations when accountability and control is the responsibility of the Government and the official records are maintained as follows:

a. Equipment recorded in the NASA PP&E System and reporting criteria is outlined in this chapter.

b. Personal property recorded in the DISPOSAL system and reporting criteria is outlined in NPR 4300.1.

c. Supply and Materials recorded in the SUPPLY Management System (SMS) and reporting criteria is outlined in NPR 4100.1

d. Equipment recorded in the TRANSPORTATION Management system and reporting criteria is outlined in NPR 6200.1.

e. Administratively Controlled Equipment when wrong doing, negligence, or unacceptable losses is suspected.

5.2.1.2 Non-Government property at NASA Headquarters, NASA Centers, and subinstallations when property accountability is the responsibility of NASA as outlined in Section 3.3.11 of this NPR.

5.2.1.3 Onsite contractors whose contracts operate under 48 CFR 1852.245-71 are required to establish and adhere to a system of written procedures for compliance with the user's responsibilities. Such procedures include holding contractors financially accountable for the loss, damage, destruction, or theft of Government property. Recommendations of the SO or the SRB are referred to the corresponding CO for execution in accordance to applicable contract provisions.

5.2.2 This chapter is not applicable to Government property held by a contractor or grantee outside a NASA Center whose records serve as the custodial property records, and NASA property is accountable under a NASA contract or grant absent the IAGP contract clause, the applicable contract or grant language from the FAR, and the NFS.

5.3 General Policy

5.3.1 A NF 598 is utilized to document the circumstances surrounding the loss, damage, destruction, or theft of Government property and to support the adjustment of NASA's accountability records, when applicable. NF 598 also is used to document a recommendation of financial liability, adverse personnel action, or both assessed against an individual(s) or entity; recommend a process improvement; or relieve individual(s) from responsibility for the loss, damage, or destruction of property.

5.3.2 The End User or the person with the most knowledge of the circumstances shall initiate an NF 598 within three business days after discovery and determination that property has been lost, damaged, destroyed, or stolen.

5.3.3 When theft is suspected, the Center Security Office is to be notified immediately whether the theft occurred on or off Center. A copy of the Security Officer's investigative report and findings is attached to the Property Survey Report as an exhibit.

5.3.4 Mandatory Initiation of a Property Survey Report.

5.3.4.1 The individual discovering the loss, damage, or destruction shall initiate and process an NF 598 when one or more of the situations below exists:

a. When loss, damage, destruction, or theft of personal property has occurred.

b. Serial number changes to weapons if changes involve more than one character or digit.

c. The total handling loss of a specific bulk petroleum product exceeds the allowable loss for that product, and the dollar value of the total loss exceeds thresholds specified in NPR 4100.1.

d. Loss or damage to NASA-owned vehicles as specified in NPR 6200.1, a vehicle leased to NASA, or a vehicle that was rented due to non-availability of vehicle assets.

e. Loss, damage, or destruction resulting from a fire, vandalism, or natural disaster.

f. When directed by the SEMO or the Center Director.

5.3.4.2 The individual responsible for the property at the time of the incident shall ensure that an NF 598 is initiated and processed through his or her respective PC and keep informed his or her respective Division Director or equivalent NASA official.

5.3.5 Collateral Investigations

5.3.5.1 The circumstances surrounding personal property that is damaged or destroyed may be subject to being investigated by three independent and concurrent investigations (each a Collateral Investigation):

a. The Safety Office to identify cause and prevent recurrence per NPR 8621.1.

b. Security/Protective Services Office Investigation.

c. Motor Vehicle Accident Report (SF 91).

5.3.5.2 Documents generated as a result of Collateral Investigations may be used to support the recommendations made by the SO/SRB; however, adjustments to property records and SO/SRB recommendations for administrative action or financial liability against an individual(s), or both, will be recommended on the NF 598.

5.3.5.3 Mishap Investigations.

a. Mishap or Close Call investigations for property damaged or destroyed are executed IAW NPR 8621.1 and in parallel to Property Survey Report investigations as outlined in this chapter. Mishap investigations focus on safety issues while Property Survey Report investigations focus on accountability and assessment of liability and responsibility.

b. The individual initiating the Property Survey Report shall enter the words "See attached mishap investigation" in block 9 of section I, NF 598, when a mishap investigation has been initiated or processed for the same incident.

c. For Mishap or Close Call investigations the SEMO shall:

(1) Obtain a completed copy of the findings and recommendations resulting from the mishap investigation, to the extent allowed by NPR 8621.1, and attach the mishap investigation report to the NF 598 as an exhibit for review by the SO/SRB.

(2) Update the EMR IAW Section 3.3.14.6, of this NPR.

(3) Process residue or damaged/destroyed property IAW Section 3.7, Request to Excess Equipment, of this NPR.

(4) Notify the Center Property Accountant of any necessary adjustments to the records of capital equipment.

d. The SO/SRB shall perform their assessment after completion of the mishap investigation and continue the processing of the NF 598 as appropriate.

5.3.5.4 Security/Office of Protective Services Investigation. In addition to property survey report investigation per this NPR, there are circumstances that warrant an investigation for missing or stolen property and misuse of Government property per Chapter 2, NPR 1600.1.

a. The SEMO shall coordinate the release of information concerning reported missing and stolen Government property with the Center Chief of Protective Services/Chief of Security (CCPS/CCS) as necessary to ensure proper accountability of controlled property and records update in compliance with this NPR.

b. On completion of the security/office of protective services investigation, the SEMO shall obtain a completed, thoroughly documented copy of the findings and recommendations resulting from the investigation to the extent allowed by NPR 1600.1 and attach the investigation report to the NF 598 as an exhibit for review by the SO/SRB as applicable.

5.3.5.5 Motor Vehicle Accident Report (SF 91).

a. NASA Headquarters and NASA Centers, including Component Facilities, when authorized to use the SF 91 to document the circumstances surrounding motor vehicle accidents, will attach the completed SF 91 to an NF 598 when a motor vehicle is damaged or destroyed in an accident.

b. The Survey Officer shall process completed copies of the SF 91 received by the SEMO as a Collateral Investigation to the NF 598.

c. The SEMO shall provide completed copies of the SF 91 and corresponding NF 598 to the Center Transportation Motor Vehicle Operations Officer, who will keep a copy for his/her records.

5.4 Procedures

5.4.1 The End User shall:

5.4.1.1 Immediately notify the respective supervisor and PC when personal property is determined lost, damaged, destroyed, or it is believed stolen.

5.4.1.2 Immediately notify the Center Security/Protective Services and Security Information offices when theft is suspected regardless of whether the theft occurred on or off Center. The respective supervisor or PC will take this action in the absence of the End User and IAW NPR 1600.1.

5.4.1.3 The End User or the individual who last had physical possession of the property is the primary originator of NF 598. The originator will complete Section I of an NF 598 (Basic Data), identifying all equipment, supply, and materials lost, damaged, or destroyed and submit the NF 598 to the respective PC for processing.

a. Losses discovered of supplies and materials will be reported to the SEMO IAW NPR 4100.1.

b. Losses discovered of items recorded in the DISPOSAL system will be reported to the corresponding custodian PDO.

c. Any supporting documents will be attached to the NF 598 as an exhibit that may help to clarify the circumstances surrounding the loss, damage, destruction, or believed stolen property.

5.4.2 The PC shall:

a. Complete Section I of an NF 598 (Basic Data) when the PC is the End User of the property or when the End User or the individual who last had possession of the property is unknown or is no longer a NASA employee.

b. On receipt, review NF 598 report(s) for accuracy and completeness and correct or return an incorrect or incomplete NF 598 to the originator for appropriate action.

c. Sign and date an accurate and complete NF 598 and forward it to the SEMO for further processing.

d. On receipt, immediately inform the respective Division Director or equivalent NASA official of the circumstances surrounding the initiation of the NF 598 for the loss, damage, destruction, or theft of property discovered within his or her organization.

e. Keep the Division Director informed of the progress of the investigation throughout the processing of the NF 598.

5.4.3 The SEMO or designee per authority granted by the Center Director shall:

a. Ensure that each survey report is assigned a survey investigation number on receipt. The survey investigation number will be entered in block 2 of NF 598. The intent of the assignment of the survey investigation number is to ensure management awareness of the initiation and tracking of an NF 598 until completion. All related documents submitted with NF 598 or subsequently added documents to a survey report will be identified with the same survey investigation number assigned to the NF 598. Configuration of the survey investigation number is determined by the SEMO and subject to Center requirements.

b. Maintain a Property Survey Report Register. Enter survey investigation numbers in sequence and in the order they are assigned to survey reports. Complete the information required on the register from the data provided on the NF 598 and subsequently update the entry on the register as the processing of the survey progresses until final approval of the NF 598. The register and all survey files are to be retained according to NPR 1441.1.

c. Review the information entered in Section I of the NF 598 along with any exhibits provided by the originator and when the property is missing or lost, authorize processing of a detail status update to the EMR or of the inactivation of the EMR in the NASA PP&E System with Inactive Reason Code #71, "Missing Equipment."

d. Reject and return incorrect or incomplete NF 598s to the respective PCs for appropriate action.

e. For damaged or destroyed property when there is residue, authorize processing detail status updates per section 3.3.14.6 of this NPR.

f. Forward survey reports to the SO if the NF 598 is complete and accurate.

g. Serve as technical advisor to the SO/SRB concerning inventory management processes, policies, procedures, and individual responsibility for accountability and safeguarding of personal property as outlined in this NPR.

h. Thoroughly brief and provide a copy of this NPR to the SO and members of the SRB concerning inventory management processes, policies, procedures, and End User responsibilities for accountability and safeguarding of property as outlined in this NPR.

i. Implement administrative action(s) to correct the causes of delays that may result in exceeding the time limits established by this NPR to process the NF 598.

j. Monitor implementation and compliance of SO/SRB findings and recommendations resulting from the property survey process.

k. Provide a copy of the complete survey report for equipment meeting the capitalization criteria to the respective Center Property Accountant, as appropriate.

5.4.4 SO and SRB Responsibilities.

5.4.4.1 The SO and SRB responsibility is to determine the cause and value of the loss or damage of the personal property listed on the NF 598. The SO/SRB shall determine whether to relieve all concerned from responsibility and liability for the loss, damage, or destruction of the property or to assess and recommend financial liability, adverse administrative action, or both against an individual or individuals.

5.4.4.2 The SO/SRB shall determine the root cause(s) for the circumstances adversely affecting the proper management of personal property and provide recommendations to organization heads for implementing corrective actions to prevent recurrence.

a. The SO/SRB determination will be made founded on the facts identified during a thorough and impartial investigation. Individuals may be held financially liable for the loss or damage of Government property if they were negligent or committed willful misconduct and their negligence or willful misconduct is the proximate cause of the loss or damage to the property.

b. The SO/SRB needs to have an understanding of the terms "responsibility, culpability, proximate cause, and loss;" as each term impacts the determination of the recommendation.

5.4.4.3 The SO shall:

a. Act independently and directly represent the Center Director in investigating facts provided on an NF 598 and the results of Mishap and Close Call cases involving property damage or destruction of Government property as recorded in the NASA Incident Reporting Information System (IRIS).

b. Confer with the SEMO to ensure that required survey report processing times are met and request assistance and technical advice.

c. Reject and return to the SEMO survey reports that do not contain a clear understanding of the circumstances or are incomplete for appropriate action.

d. Confer with OGC/OCC attorney for legal opinion. Attorneys are trained in matters of negligence standards, conflicts of interest, and sufficiency of evidence.

e. Review all survey reports (NF 598) within ten business days from receipt.

f. Forward all survey reports in which negligence, willful misconduct, or wrongdoing is suspected to the SRB for further processing.

g. Convene a SRB to review and process survey reports with suspected negligence, willful misconduct, or wrong doing.

h. Suspend SRB action if advised by Center security of a potential criminal investigation.

(1) The SO shall not reconvene the SRB until notified by Center security that proceedings may continue.

(2) Report survey reports under criminal investigation to the Office of the Inspector General if surveyed equipment is in custody of individuals or entities not located on Federal facilities.

(3) Inform the Center Security Officer of the status of reported or suspected thefts of Government property regardless of whether the theft, loss, damage, or destruction occurred on or off the Center.

5.4.5 Time Constraints for the Processing of NF 598.

5.4.5.1 Initiate and complete the processing of the NF 598 within 48 business days following the discovery and determination of the loss or damage of Government property. Total processing time equals the difference in business days between the date of discovering the discrepancy and the date the NF 598 is approved. The time used to obtain a legal opinion from OCC/OGC and the appeal process (if applicable) will not be included in the total processing time.

5.4.5.2 The following paragraphs (a though f) and Table 5-1 (NASA Property Survey Report Process Timeframes) depicts the time segments for the initiation and processing of an NF 598. The SEMO may adjust the time segments at their discretion; however, the total processing time is not to exceed 48 business days.

a. An NF 598 shall be initiated by the End User or by the individual with the most knowledge of the incident when the End User is not available within three business days of discovery of the loss, damage, destruction, or theft of property and forwarded to the PC for review and processing. The End User is to complete Section I (Basic Data) of NF 598 and provide detailed information surrounding the incident that cause the loss, damage, or destruction of property.

b. Upon receipt, the PC shall review the NF 598 for completeness and forward to the SEMO within five business days, otherwise, return to the End User for proper action. The respective Division Director, head of organization, CO, or equivalent NASA official will accomplish this action if the PC is the person under investigation.

c. Upon receipt, the SEMO shall review the form for completeness, assign a Survey Investigation Number, and forward the NF 598 to the SO within ten business days of receipt or return incomplete NF 598s to the PC for appropriate action.

d. On receipt, the SO shall review the Property Survey Report for completeness and process the NF 598 within ten business days.

e. The SO shall review the information entered in Section I of the NF 598 along with any exhibits provided by the originator. The SO shall consider the following:

(1) The NF 598 has been directed by the SEMO or the Center Director.

(2) Sufficient information exists to provide a clear understanding of the circumstances surrounding the loss or damage of property and to determine the proximate cause.

(3) Whether the circumstances surrounding the loss, damage, destruction, or theft of property warrants further investigation by the SRB. Otherwise, the SO may proceed to complete and approve the NF 598.

f. The SRB shall complete its investigation, including findings and recommendations, within 20 business days of receipt of an NF 598.

(1) The SRB will convene as often as necessary to meet this requirement.

(2) The SRB will provide a completed NF 598 to the SO for concurrence and approval.

g. On receipt, the SO shall complete and forward the NF 598 and all supporting documentation to the SEMO for further distribution to the Division Director or equivalent NASA official or for filing IAW NPR 1441.1, NASA Records Retention Schedules.

h. On receipt, the Division Director or equivalent NASA official, or CO, reviews the findings and recommendations from the SO/SRB and either concurs or non-concurs, completes NF 598, and returns NF 598 to the SEMO within five business days.

(1) If Division Director concurs with the SO/SRB findings and recommendations, executes the recommendation(s) and the SEMO monitors compliance.

(2) If the Division Director non-concurs with the SO/SRB findings and recommendations, initiates an appeal memorandum requesting adjudication from the Center Operations Director.

i. On receipt, the Center Operations Director reviews NF 598 and the justification for the appeal. Provides the result of his or her review and adjudication in a separate memorandum within five business days to the Division Director and the SEMO.

5.4.6 Disposition of Damaged Property.

5.4.6.1 The originator of an NF 598 shall not start the disposal process, repair, or continue to use the damaged property until the SO decides it is no longer needed for investigative purposes.

5.4.6.2 When damaged property is not needed for investigative purposes, return to service that property considered fit for service or make repairable property available for repair.

5.4.6.3 Unserviceable or uneconomically repairable property will be reported IAW section 3.7 of this NPR.

5.4.6.4 For vehicular accidents resulting in damage to the vehicle, the SEMO may allow the continued use of the vehicle when the following actions are completed by the End User:

a. The damaged vehicle is photographed, documenting the damage caused by the accident.

b. Certification is obtained from a qualified automotive technician that damage does not prevent the safe use of the vehicle and that continued use will not make the damages worse.

c. Both the photographs and the certification will be attached as exhibits to the NF 598 when the investigation is initiated.

d. Approval to continue use of the vehicle is obtained by the Center Transportation Officer.

5.4.7 Conflict of Interest

5.4.7.1 No person may act as a reviewing official (i.e., SEMO, SO, or SRB member) who had personal responsibility or accountability for the property listed on the NF 598 at the time the property became lost, damaged, or destroyed. In such cases, the next higher level of management or supervision will act as the reviewing official authority.

5.4.7.2 Board members shall recuse themselves from voting if there is a potential conflict of interest in the Survey Report under review as outlined in Section 1.14.7 of this NPR.

5.4.8 Assessment of Financial Liability for NASA Contractors Operating Under the IAGP Clause.

5.4.8.1 Upon approval of a completed NF 598, the SO/SRB shall forward it and all related documentation to the respective CO for the appropriate action.

5.4.8.2 The SO/SRB may recommend:

a. The contractor employee be held financially accountable and responsible for the loss, damage, destruction, or theft of Government property and for the CO to recover a dollar amount equivalent to the acquisition value of the lost, damaged, destroyed, or stolen Government property from the contractor IAW the FAR.

b. The contractor be relieved from accountability and responsibility for the loss, damage, destruction, or loss of Government property.

c. A specific corrective or preventive action to reduce the probability of recurrence.

5.4.8.3 The CO shall:

a. Determine, assisted by the property administrator, the development and implementation of an appropriate corrective action to mitigate recurrences of loss, damage, destruction, or theft of NASA property IAW contract provisions, NPR 4500.1, and the FAR.

b. Complete Section VIII of the NF 598 and return to the SEMO.

5.4.9 The initiation and processing of an NF 598 for property belonging to a NASA installation other than where physically located.

5.4.9.1 When property is located at a NASA Center other than the owner NASA Center:

a. The End User of the property lost, damaged, destroyed, or believed stolen shall:

(1) Initiate an NF 598 per policy requirements outlined in this chapter.

(2) Provide a copy of the NF 598 to the Center SEMO.

b. The SEMO of the Center initiating the NF 598 shall:

(1) On receipt of NF 598, immediately notify the Center SEMO owner of the property records in the NASA PP&E System.

(2) Provide a copy of the NF 598 to the SEMO of the owner organization.

(3) Obtain a survey investigation number from the SEMO of the owner organization or Center owner of the equipment record in the NASA PP&E System.

(4) Process the NF 598 IAW policy requirements outlined in this chapter.

(5) Provide an approved and complete copy of the NF 598, including exhibits, to the SEMO of the owner organization.

c. The SEMO of the Center owning the property records in the NASA PP&E System shall:

(1) On receipt of the NF 598, assign a survey investigation number to the NF 598.

(2) Provide survey investigation number to the SEMO of the Center initiating the NF 598.

(3) Update the property records in the NASA PP&E System IAW section 5.4.3 of this directive.

5.4.9.2 When Property is in physical custody and responsibility of an organization outside NASA:

a. The End User of the property loss, damaged, destroyed, or believed stolen shall:

(1) Obtain statement from the outside organization describing the circumstances surrounding the loss, damage, or destruction of NASA property.

(2) Initiate an NF 598 per policy requirements outlined in this chapter and attach a copy of all documents provided by the outside organization.

(3) Process the NF 598 IAW policy requirements in this chapter.

b. The SEMO of the Center initiating the NF 598 shall process it IAW policy requirements in this chapter.

5.4.10 Accountability of Recovered Property Previously Listed on NF 598.

5.4.10.1 Often property is found, or recovered, after an NF 598 has been initiated to account for the loss. When this occurs, follow the procedures listed below:

a. When the property is recovered before a survey investigating number is assigned to the NF 598 and the EMR(s) has not been made inactive by the SEMO, the originator shall:

(1) If some but not all the property is recovered, line through the recovered property identified in blocks 8 (a - g) of Section I. Adjust the grand total and continue the process of the NF 598.

(2) If all the property is recovered, destroy the document.

b. When property is recovered after a survey investigating number has been assigned to the NF 598 and the EMR(s) has been made inactive by the SEMO, the originator, the SO/SRB, or the Division Director, as appropriate, shall notify the SEMO in writing to reestablish accountability in the NASA PP&E System for the recovered property.

(1) Attach a copy of the written notification to NF 598 as an exhibit.

(2) The SEMO shall process Acquisition Method # 19, "Receipt from reinstating Item Previously Surveyed" in the NASA PP&E System for recovered property and advise the End User and PC that accountability for the property is reestablished to the corresponding property custodial account. File the NF 598 and close out the entry in the Property Survey Report Register.

(3) If some but not all the property is recovered, line through the recovered property identified in blocks 8 (a - g) of Section I. Adjust the grand total and continue processing the NF 598.

c. When all property is recovered, the NF 598 will be cancelled and the SO/SRB notified to discontinue the investigation. The SEMO shall mark the original NF 598 "cancelled," file it to support the cancellation, and close out the entry in the Property Survey Report Register.

5.4.11 Property Destroyed or Lost in Orbit.

5.4.11.1 Under extreme circumstances, decision is made by crew members to destroy NASA property in space when the return of property to Earth is not practical or unsafe, or both. In such instances, NF 598 shall be initiated by the program/project director or designee and processed by the SEMO with inactivation code 93 - "Destroyed in Orbit."

a. The NF 598 will be forwarded to the SO and processed IAW this chapter.

b. Property destroyed in orbit will not affect the Center's loss rate.

5.5 Reporting

5.5.1 The SO, in conjunction with the SRB Chairperson, shall provide a written report to the Center Director at the end of each fiscal year.

5.5.2 The report will be developed in close coordination with the Center SEMO and include:

a. The total number of property survey reports processed at the Center during the fiscal year, segregated by directorate or equivalent organization and the acquisition cost for lost, damaged, destroyed, and stolen Government property.

b. An itemized summary of SO/SRB recommendations.

c. The total number of employees held responsible or accountable for the loss, damage, or destruction of property (i.e., financially liable, adverse administrative action, or both) or administrative actions against employees for each directorate or equivalent organization.

d. General information regarding significant actions resulting from survey reports, Division Director's concurrences, non-concurrences, or other matters related to the recommendations of the survey review process.

e. Number of property survey reports initiated for property discovered missing during the scheduled physical inventory.

f. Number of property survey reports initiated outside the scheduled physical inventory.

g. Root Cause Analysis:

(1) Loss trends by organization, location, or equipment type.

(2) Reasons for the loss (examples missing, office move, etc.), damage, destruction, or theft.

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