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NASA
Procedural
Requirements

NPR 4500.1A
Effective Date: April 10, 2024
Expiration Date: April 10, 2029

COMPLIANCE IS MANDATORY FOR NASA EMPLOYEES

Subject: Administration of Property in the Custody of Award Recipients

Responsible Office: Office of Strategic Infrastructure

Chapter 7. Special Situations

7.1 Progress Payments Awards

7.1.1 Title Under Progress Payments Awards

While the Government holds absolute title to limited classifications of property under the terms of 48 CFR § 52.232-16, that title is limited to the value of property acquired allocable to or reasonably charged to the award. Title is also limited to the duration of the award. At the conclusion of a fixed-price progress payments award, any deliverable remains titled to the Government and title to any residual property reverts to the recipient.

7.1.2 Property Administration Under Progress Payment Awards

Property provided exclusively under 48 CFR § 52.232-16, is not subject to the terms and conditions of FAR section Government Property, 48 CFR pt. 45, NFS section Government Property, 48 CFR pt. 1845, and the property clauses. Such property is to be managed in accordance with the FAR clause Progress Payments. Property control will be in accordance with accounting systems and controls rather than property systems and controls. As such, the property is not subject to PMSAs.

7.1.3 Property Reporting Under Progress Payment Awards

As PMSAs are not applicable to progress payments awards, GPAs and IPOs cannot verify the adequacy of the recipient’s systems for recording and managing property under those awards. GPAs and IPOs should only verify reports from those recipients whose property systems are audited due to the issuance of another award that is subject to 48 CFR § 52.245-1. The IPO should recommend that the Center OCFO Property Accountant request verification of the recipient’s cost accounting practices from DCAA or another appropriate Government agency.

7.1.4 Administration When Government Property is Furnished

7.1.4.1 When GP is furnished to a recipient operating under 48 CFR § 52.232-16, the IPO shall advise the CO/GO to include 48 CFR § 52.245-1, 48 CFR § 52.245-9, and applicable NFS clauses.

7.1.4.2 GFP stewardship and disposition requirements will be established and monitored when property is provided. Property administration and plant clearance will be accomplished by a GPA and PDO/PLCO according to Abandonment or Destruction of Personal Property, 48 CFR § 45.603, , 48 CFR subpt. 1845.5, and this NPR.

7.2 Small Business Innovation Research Property

7.2.1 Title Under Small Business Innovation Research Awards

7.2.1.1 Title to property under Small Business Innovation Research (SBIR) awards is governed by 48 CFR § 52.245-1. Most SBIR awards are awarded as fixed-price awards. As such, the property acquired by the recipient is titled to the recipient, subject to any use of 48 CFR § 52.232-16. (See Section 7.1.)

7.2.1.2 Recipients may retain GP under Phase III SBIR awards when:

a. Property remaining in the custody of a recipient, after delivery and acceptance by the government, is added to appropriate property systems and is furnished as GP under the award in accordance with the requirements of 48 CFR § 52.245-1; or

b. Property is accepted by NASA, added to NASA property systems (e.g., On Center Equipment Property System or NESS), and loaned to the recipient using NASA property loan procedures unless stated otherwise in the award as GFP; or

c. The recipient requests transfer of title and the CO/GO, working with the Center PDO/PLCO, provides a written determination and findings that:

(1) NASA has no further requirement for the property.

(2) It is more cost-effective to leave the property in place than to screen and disposition the property through NASA and/or delegated disposition activities.

(3) Findings and determinations contain data on disposition costs (i.e., storage, transportation, packing, crating, warehousing, performing any required destruction), and those combined costs exceed the acquisition value of the item.

7.3 Storage of Property Under Awards

7.3.1 Policy

Property may only be stored under awards for the life of the current award and only when there is a firm requirement for the present or future use of property under that award.

7.3.2 Documentation

When recipients request authority to store property and a GPA has determined that it is no longer required for performance of the award, the GPA should request a determination from the CO/GO that:

a. The replacement value of the item(s) to be stored exceeds the continued costs associated with storage of the property; or

b. The storage of the property is required to support a safety requirement, such as retention of test articles; or

c. Storage of unique items or items out of production is required to maintain a mission capability.

7.3.3 Storage Beyond Physical Award Completion

As the GCAM and 48 CFR § 52.245-1 require that property no longer required for performance of an award be reported for disposition and property can no longer be required by a recipient for performance of a complete contract, any requirement for storage beyond the completion date, excepting normal disposition requirements, is likely to exceed the scope of the providing award. GPAs and IPOs shall advise the CO/GO of any instance where a recipient report being required to store property more than award requirements.

7.4 Property Administration for High-Risk Programs

Under high-risk programs, success of PMAs and possibly success of the program itself may require establishing property management organizations. When a high-risk award is anticipated, the Center IPOs may assess whether a central property management activity responsible for coordination of all property management activities at prime and alternate worksites may be appropriate with the approval of the HQ-CPPM with justification. Section B of NF 1430C addresses NASA awards outside of NASA Centers/Installations when a Center IPO is not assigned. Upon the HQ-CPPM’s approval, the IPOs may:

a. Assume the role of prime GPA or assign a Center GPA the responsibility of prime GPA for the overall effort.

b. Coordinate with the CO/GO and program officials to establish an award requirement that a management individual or position be identified within the prime award to be directly responsible for property management across all locations of the award, which may include subcontractor locations. A FIP does not accept prime award without a subcontractor.

(1) Property management should be the principal or sole responsibility of this individual.

(2) This requirement should be clearly established within the Statement of Work or in a special provision.

(a) Support delegations will be forwarded by the Center IPO to the HQ-CPPM for concurrence prior to issuance.

(b) The HQ-CPPM shall coordinate, as necessary, the implementation of support delegations with counterparts at cognizant activities.

(c) When Center IPO is unable to handle the award with justification and approval by the HQ-CPPM, the award will be delegated to FIP if it meets the acquisition threshold or additional awards are in the vicinity.

7.5 Foreign Awards

7.5.1 Treaties and International Agreements

7.5.1.1 Deviations Pertaining to Treaties and Executive Agreements

Under the FAR section Deviations Pertaining to Treaties and Executive Agreements,

48 CFR, § 1.405, which addresses the special situations that may arise when awarding in foreign countries, deviations associated with treaties and executive agreements are authorized unless those agreements are overturned by law after they are issued. HQ-CPPM, IPOs and GPAs shall be aware in writing by NASA Center Program/Procurement Office, etc., of all treaties and executive agreements that could or will affect the management of property under an award. (See the Applicability, 2 CFR § 1800.3(c), and the GCAM for information related to foreign grants and cooperative agreements.)

7.5.1.2 Deviations Associated with Foreign Awards

a. When a treaty or international agreement requires deviation from the FAR or NFS, that deviation needs to be processed in accordance with Procedure for Requesting Deviations, 48 CFR subpt. 1801.471.

b. HQ-CPPM, CO/GO, and IPOs shall receive advance notification and be aware of request copies of all requested and approved FAR and NFS deviations related to property management and disposition from the Center procurement office along with the treaties or executive agreements supporting the deviation.

7.5.2 Administration and Disposition of Property in Foreign Countries

a. IPOs shall recommend delegation of property administration and plant clearance to the

HQ-CPPM for the international office responsible for the country in which the award will be performed.

b. The FIP will determine whether it can accept the delegation in the international location. If the FIP accept award(s), it will follow the delegation process in this NPR.

c. Disposition of property involves compliance with regulations outside the CFR, FAR, and NFS. FMR requires that agencies establish guidance for the disposition of property in foreign countries. NASA requirements are found under NPD 4300.1, NASA Personal Property Disposal Policy and NPR 4300.1, NASA Personal Property Disposal Procedural Requirements. When awards are delegated, they will follow the delegation process in this NPR.

d. IPOs shall review deviations from the FAR for disposition and either recommend changes to ensure compliance with the documents listed in Section 7.5.1.2.b above or request appropriate deviation from those documents.

7.6 Award Recipients Performing Within NASA Facilities

7.6.1 On-Center award recipients shall manage and disposition property according to NPRs and in accordance with the IAGP clause, 48 CFR § 1852.245 71, unless otherwise specified in their award.

7.6.2 Use of NASA Record Keeping Processes

7.6.2.1 In accordance with 2 CFR § 200.313, and 48 CFR § 45.106, the CO/GO shall approve movement of property between the Center and the recipient’s locations prior to movement and record the movement using appropriate transactions in NASA record-keeping systems. Such property becomes GFP and is subsequently recorded in the recipient systems through disposition or until it is returned to the Government.

7.6.2.2 Records of equipment being used by on-Center recipients are to be maintained in NASA record-keeping systems.

7.6.2.3 NASA’s Equipment Manager or SEMO will maintain records of on-Center supplies within NASA record-keeping systems to the extent those systems are available.

7.6.3 Use of Award Recipient Record Systems

a. When the CO/GO or a responsible program foresees possible delays or problems that may be associated with using the NASA record-keeping systems, particularly in conjunction with using the recipient’s systems to procure supplies and materials:

(1) The recipient may maintain the record of material in accordance with the NFS clause IAGP, 48 CFR § 1852.245-71, and 48 CFR § 52.245-1.

(2) To ensure continued visibility and availability of all supplies located on NASA installations, the IPO should advise the CO/GO and the program that the award should contain language requiring transmission of detailed supply data to NASA’s supply systems monthly and in a format prescribed by the NASA Supply Program Manager, HQ LMD.