[Federal Register Volume 64, Number 140 (Thursday, July 22, 1999)]
[Proposed Rules]
[Pages 39456-39460]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-18589]


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DEPARTMENT OF DEFENSE

48 CFR Parts 245 and 252

[DFARS Case 99-D019]


Defense Federal Acquisition Regulation Supplement; General 
Property, Plant, and Equipment

AGENCY: Department of Defense (DoD).

ACTION: Advance notice of proposed rulemaking.

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SUMMARY: The Director of Defense Procurement is soliciting comments 
from Government and industry personnel on contemplated revisions to the 
Defense Federal Acquisition Regulation Supplement (DFARS) to obtain 
data that will enable DoD to comply with the financial reporting 
requirements of the Chief Financial Officer's Act. The DFARS revisions 
would require contractors to furnish information on other real 
property, industrial plant equipment, other plant equipment, and 
software acquired or produced for performance of a cost-reimbursement 
or time-and-material contract. The reporting requirement is limited to 
reportable items or systems having an acquisition cost of $100,000 or 
more.

DATES: Interested parties should submit written comments to the address 
shown below no later than September 7, 1999. Electronically submitted 
comments are preferred.

ADDRESSES: Interested parties should submit written comments to: Deputy 
Director, Major Policy Initiatives, Room 3E144, the Pentagon, 
Washington, DC 20301-3060, ATTN: Ms. Angelena Moy,

[[Page 39457]]

OUSD (A&T)/DDP. Submit electronic comments to [email protected]. Please 
cite DFARS Case 99-D019 on all related correspondence.

FOR FURTHER INFORMATION CONTACT: Ms. Angelena Moy, (703), 695-1097/1098 
or [email protected].

SUPPLEMENTARY INFORMATION: 

A. Background

    DoD must improve the reliability of agency-level financial reports 
to comply with the requirements of the Chief Financial Officer's Act 
(Pub. L. 101-576). The proposed DFARS revisions will enable DoD to more 
accurately determine the current value of Government property that was 
originally acquired or produced by a contractor under a cost-
reimbursement or time-and-materials contract.

B. DD Form 1662-S, General Property, Plant, and Equipment in the 
Possession of Contractors

    The proposed DFARS revisions contain a new clause that specifies 
requirements for contractors to furnish information using the following 
form. DoD will seek Office of Management and Budget approval for use of 
the new form in accordance with the Paperwork Reduction Act (44 U.S.C. 
3501, et seq.).

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List of Subjects in 48 CFR Parts 245 and 252

    Government procurement.
Michele P. Peterson,
Executive Editor, Defense Acquisition Regulations Council.

    Therefore, DoD proposes to amend 48 CFR Parts 245 and 252 as 
follows:
    1. The authority citation for 48 CFR Parts 245 and 252 continues to 
read as follows:

    Authority: 41 U.S.C. 421 and 48 CFR Chapter 1.

PART 245--GOVERNMENT PROPERTY

    2. Amend section 245.505-14 by adding paragraph (b) to read as 
follows:


245.505-14  Reports of Government property.

* * * * *
    (b) Use the clause at 252.245-XXX, Supplemental Property Report-
Cost-Reimbursement and Time-and-Materials Contracts, in cost-
reimbursement and time-and-materials contracts that include the clause 
at 252.245-7001, Reports of Government Property.

PART 252--SOLICITATION PROVISIONS AND CONTRACT CLAUSES

    3. Add section 252.245-XXX to read as follows:


252.245-7XXX  Supplemental Property Report-Cost-Reimbursement and Time-
and-Material Contracts.

    As prescribed in 245.505-14(b), use the following clause:

Supplemental Property Report-Cost-Reimbursement and Time-and-Materials 
Contracts (XXX 1999)

    (a) Definition. As used in this clause--
    Agency-peculiar property means military property and includes 
end items and integral components of military weapons systems, along 
with the related peculiar support equipment that is not readily 
available as a commercial item.
    Commercial computer software means software developed or 
regularly used for nongovernmental purposes that--
    (1) Has been sold, leased, or licensed to the public;
    (2) Has been offered for sale, lease, or license to the public;
    (3) Has not been offered, sold, leased, or licensed to the 
public but will be available for commercial sale, lease, or license 
in time to satisfy the delivery requirements of this contract; or
    (4) Satisfies a criterion expressed in paragraph (1), (2), or 
(3) of this definition and would require only minor modification to 
meet the requirements of this contract.
    General property, plant, and equipment means land, other real 
property, industrial plant equipment, other plant equipment, and 
software. The term does not include special tooling, special test 
equipment, agency-peculiar property, or material.
    Industrial plant equipment (IPE) means plant equipment in 
Federal stock group 34 with an acquisition cost of $15,000 or more 
used for cutting, abrading, grinding, shaping, forming, joining, 
heating, treating, or otherwise altering the physical properties of 
materials, components, or end items entailed in manufacturing, 
maintenance, supply, processing, assembly, or research and 
development operations. IPE is further identified in AR 700-43/
NAVSUP PUB 5009/AFM 78-9/DLAM 4215.1, Management of Defense-Owned 
Industrial Plant Equipment.
    Other plant equipment (OPE) means plant equipment regardless of 
dollar value, used in or in conjunction with the manufacture of 
components or end items relative to maintenance, supply, processing, 
assembly, or research and development operations. OPE excludes 
equipment categorized as IPE.
    Software means computer software, including commercial computer 
software.
    (b) Supplemental information-general property, plant, and 
equipment (GPP&E). The Contractor shall furnish the information 
required by DD Form 1662-S, General Property, Plant, and Equipment 
in the Possession of Contractors, for each GPP&E item or system to 
which the Government has title under a cost-reimbursement or time-
and-materials contract that--
    (1) Was acquired or produced by the Contractor for performance 
of this contract;
    (2) Has an estimated useful life of 2 or more years;
    (3) Has an acquisition cost of $100,000 or more that was 
allocated to this contract as a direct cost; and
    (4) Is in the Contractor's or a subcontractor's possession as of 
September 30 of the current year or, for contracts completed or 
terminated prior to or during the current fiscal year, on the date 
the contract was completed or terminated.
    (c) Source data. The Contractor shall extract acquisition cost 
information from the Contractor's financial or cost accounting 
systems.
    (d) Reporting and submission requirements. The Contractor 
shall--
    (1) Prepare a separate DD Form 1662-S for each contract under 
which GPP&E items or systems are accountable;
    (2) Submit the DD Form 1662-S to the cognizant Government 
property administrator within 30 days following completion of the 
reporting year; and
    (3) For contracts completed or terminated in their entirety 
prior to September 30 of the reporting year, complete a DD Form 
1662-S to report property in the Contractor's or a subcontractor,s 
possession as of the date of contract completion or termination. The 
Contractor shall submit the form to the cognizant Government 
property administrator within 30 days following contract completion 
or termination.

(End of clause)

[FR Doc. 99-18589 Filed 7-21-99; 8:45 am]
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