| NODIS Library | Property, Supply and Equipment(4000s) | Search |

NPR 4500.1
Effective Date: February 24, 2014
Expiration Date: June 24, 2024
Printable Format (PDF)

Subject: Administration of Property in the Custody of Contractors

Responsible Office: Office of Strategic Infrastructure

| TOC | Preface | Chapter1 | Chapter2 | Chapter3 | Chapter4 | Chapter5 | Chapter6 | Chapter7 | Chapter8 | AppendixA | AppendixB | ALL |

Chapter 3. Delegation and Oversight of Property Administration Activities

3.1 Delegation of Offsite Property Administration Activities

3.1.1 It is NASA policy to delegate property administration activities for contractors performing offsite. Delegation allows NASA to utilize the resources of agencies that are already in place, geographically and organizationally and that are ready to perform these functions. Delegation is made to the Defense Contract Management Agency (DCMA) for private, for profit contractors, and Office of Naval Research for nonprofit research entities and educational institutions. This allows NASA to better utilize its own resources and presents "one face of the Government" to contractors. When external agencies do not provide oversight for a contractor, the contractor does not perform within a geographical area under the oversight of an external agency, or the place of performance is within a NASA installation, NASA retains the authorities and responsibilities associated with property administration. The requirements for delegation are set forth in NFS 1845.5. This chapter provides guidance on NASA oversight of delegated activities, issuance of support delegations for NASA-retained property administration activities, and IPO reviews of CO-retained property administration.

3.1.2 Oversight of Delegated Property Administration Activities NASA IPOs shall utilize NESS to maintain records of property administration activity, whether delegated or retained.

a. The IPO shall maintain a record of the cognizant PA whenever notified by the delegated organization of acceptance of a delegation or changes to personnel.

b. The IPO shall create or update records of PMSAs when they receive a report more current than that existing in NESS.

c. The IPO shall review report submissions in NESS to ensure PA verification of property reports according to delegation instructions and reporting requirements.

d. The IPO shall review the DoD PA's reports of property system deficiencies identified during the PMSA and, based on the recommendations of the PA, determine whether to provide further recommendations to the CO to remedy the situation. These recommendations may include, but are not limited to, holding the contractor liable for property loss until any deficiencies are corrected.

3.2 Support Delegations

3.2.1 When NASA delegations are performed by NASA PAs, they may seek support delegations from other agencies. Care should be exercised to ensure that any support delegation instructions comply with the requirements of this NPR, NFS, and contract language.

3.2.2 Support Delegation Requirements The IPO shall forward copies of Center-developed support delegation instructions to the NASA Contract Property Program Manager, Logistics Management Division, Headquarters, for review and approval. The IPO shall include the prime contract under which charges for DCMA property administration are to be billed within the support delegation instructions.

3.3 Retention of Onsite Property Administration Activities

3.3.1 NASA requires the use of NASA systems, as available, for recordkeeping of onsite, IAGP being used by contractors. NASA procedures are used to manage IAGP being used by onsite contractors. As external contract property administration personnel might not be familiar with internal NASA systems and guidance, contract property administration activities are retained for contractors performing on Centers and Installations. When required, NASA IPOs and PAs shall perform onsite reviews of contractor performance.

3.3.2 Onsite Property Administration Requirements The IPO shall work with the SEMO to define the depth and extent of audits of onsite contractor performance.

a. IPOs and SEMOs should consider the need to audit contractor property performance when the statement of work requires significant independent contractor action in the execution of property transactions and activities.

b. Centers should seek the review and the opinion of the IPO in preparing performance evaluations when significant contractor property management activities are specified within the statement of work.

3.4 Retention of Property Administration by the CO

3.4.1 NASA COs may retain property administration and plant clearance in accordance with NFS 1845.503-70 only when there is a compelling need, such as a security requirement or safety requirement that would prohibit a noncleared PA or a PlCO from performing these services. When COs retain property administration, they are required by NFS to submit a plan for the performance of property administration and the results of execution of that plan to the IPO for their review and recommendations.

a. The IPO shall review these items and provide recommendations to the CO regarding any revisions needed to ensure appropriate management control and reporting of NASA property in the custody of the contractor.

3.4.2 Audit Requirement and Schedule When the CO retains property administration, the IPO should review the CO's property administration plan and ensure it includes a schedule for the performance of PMSAs. IPOs should recommend that audits be scheduled, at a minimum, in accordance with the risk plan, and that procedures are established to ensure that contractor property management processes are reviewed in accordance with guidance on the subject in Chapter 4. When the IPO determines that the CO's plan does not appropriately address the schedule or processes to be used, the IPO should provide recommendations for improvement in accordance with the requirements of this NPR.

3.4.3 CO Performance of Oversight When the CO retains property administration, NFS 1845.503-71 requires the CO to perform PMSAs and report the status of the audit to the IPO.

3.4.4 IPO Review of Oversight Activities The IPO shall review the CO's PMSA report and recommend any appropriate further action.

3.4.5 Reports NFS 1845.503-71 requires that the CO provide a plan for collection and dissemination of financial reports. IPOs should review the plan to assure it includes:

a. Verification that the contractor's system is able to provide accurate and complete reports for financial reporting and property reporting purposes.

b. Processes to require that the contractor submit all required reports on time. The IPO should recommend that the CO require the contractor to submit the reports via the NASA Form 1018 Electronic Submission System (NESS) to allow for the online, interactive reporting of required data.

3.4.6 Property Transfers When property administration is retained, NFS 1852.245-71 requires the CO to provide a process to ensure that appropriate documentation supporting the transfer of property.

a. The IPO should review the plan to assure that it addresses the appropriate creation and processing of transfer documentation. This includes both transfers from the Center or Installation to the contractor and transfers from the contractor to the Center or Installation.

b. Transfers of items acquired by the contractor, titled to the Government, but not specifically required as a deliverable, shall be processed in accordance with the requirements of NFS 1845.106.

c. The IPO should advise the CO of any changes needed in the plan to assure that: transfers are fully documented; it requires inclusion of all information needed to establish or maintain property records; and it clearly addresses who accepts the responsibility for recordkeeping, stewardship, and management of the property.

| TOC | Preface | Chapter1 | Chapter2 | Chapter3 | Chapter4 | Chapter5 | Chapter6 | Chapter7 | Chapter8 | AppendixA | AppendixB | ALL |
| NODIS Library | Property, Supply and Equipment(4000s) | Search |


This document does not bind the public, except as authorized by law or as incorporated into a contract. This document is uncontrolled when printed. Check the NASA Online Directives Information System (NODIS) Library to verify that this is the correct version before use: https://nodis3.gsfc.nasa.gov.