[Federal Register Volume 67, Number 218 (Tuesday, November 12, 2002)]
[Rules and Regulations]
[Pages 68533-68535]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-28084]


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NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Part 1845

RIN 2700-AC33


Government Property--Instructions for Preparing NASA Form 1018

AGENCY: National Aeronautics and Space Administration.

ACTION: Interim rule.

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SUMMARY: This interim rule amends the NASA Federal Acquisition 
Regulation Supplement (NFS) to provide policies and procedures for 
proper reporting of heritage assets as part of contractor annual 
reports of NASA property in its custody, and to clarify other property

[[Page 68534]]

classifications. NASA uses the data contained in contractor reports for 
annual financial statements and property management. This change will 
provide for consistent reporting of NASA property by contractors.

DATES: Effective Date: This interim rule is effective November 12, 
2002.
    Comment Date: Comments should be submitted to NASA at the address 
below on or before January 13, 2003.

FOR FURTHER INFORMATION CONTACT: Lou Becker, NASA Headquarters, Office 
of Procurement, Contract Management Division (Code HK), Washington, DC 
20546, telephone: (202) 358-4593, e-mail to: [email protected].

SUPPLEMENTARY INFORMATION:

A. Background

    NASA must account for and report assets in accordance with 31 
U.S.C. 3515, Federal Accounting Standards, and Office of Management and 
Budget (OMB) Bulletin No. 01-09, Form and Content of Agency Financial 
Statements. Since contractors maintain NASA's official records for 
NASA-owned assets in contractors' possession, NASA must obtain annual 
data from those records in order to facilitate proper accounting and 
control over the assets. This interim rule provide policies and 
procedures for proper reporting of heritage assets by providing a 
definition and directing that these assets be reported within 
appropriate property classifications. This interim rule also clarifies 
other property classifications and provides cross references to the FAR 
to insure proper reporting of these assets.

B. Regulatory Flexibility Act

    NASA certifies that this interim rule will not have a significant 
economic impact on a substantial number of small businesses within the 
meaning of the Regulatory Flexibility Act (5 U.S.C. 601 et seq.) 
because it clarifies existing property reporting policies and 
procedures contractors must follow when accounting for and reporting 
assets.

C. Paperwork Reduction Act

    The Paperwork Reduction Act does not apply because the changes to 
the NFS do not impose new recordkeeping or information collection 
requirements which require the approval of the Office of Management and 
Budget under 44 U.S.C. 3501, et seq.

D. Determination To Issue an Interim Rule

    In accordance with 41 U.S.C. 418(d), NASA has determined that 
urgent and compelling reasons exist to promulgate this interim rule. 
The basis for this determination is that the clarifications contained 
in this interim rule are needed to ensure consistent reporting of NASA 
assets in contractor annual reports to be submitted by October 31, 
2002. Public comments received in response to this interim rule will be 
considered in the formation of the final rule.

List of Subjects in 48 CFR Part 1845

    Government procurement.

Tom Luedtke,
Assistant Administrator for Procurement.

    Accordingly, 48 CFR part 1845 is amended to as follows:
    1. The authority citation for 48 CFR part 1845 continues to read as 
follows:

    Authority: 42 U.S.C. 247(c)(1).

PART 1845--GOVERNMENT PROPERTY

    2. Amend section 1845.7101-1 by--
    a. Revising paragraph (a);
    b. Revising the introductory text of paragraph (g);
    c. Adding ``(see FAR 45.101)'' at the end of the first sentence in 
paragraph (h) introductory text;
    d. Adding ``(see FAR 45.101)'' at the end of the first sentence in 
the introductory text of paragraph (i);
    e. In paragraph (j), adding ``regardless of whether or not it is 
unique to NASA programs,'' immediately after ``inventory'' in the first 
sentence, and adding ``spares,'' immediately after ``material'' in the 
second sentence;
    f. Revising the first sentence in the introductory text of 
paragraph (k). The revised text reads as follows:


1845.7101-1  Property classification.

    (a) General. (1) Contractors shall report costs in the 
classifications on NF 1018, as described in this section. The cost of 
heritage assets will be reported on the NF 1018 under the appropriate 
classification. Supplemental reporting may also be required. Heritage 
assets are property, plant and equipment that possess one or more of 
the following characteristics:
    (i) Historical or natural significance;
    (ii) Cultural, educational or aesthetic value; or
    (iii) Significant architectural characteristics.
    (2) Examples of NASA heritage assets include buildings and 
structures designated as National Historic Landmarks as well as 
aircraft, spacecraft and related components on display to enhance 
public understanding of NASA programs. Heritage assets which serve both 
a heritage and government operation function are considered multi-use 
when the predominant use is in general government operations. Multi-use 
heritage assets will not be considered heritage assets for NF 1018 
supplemental reporting purposes.
* * * * *
    (g) Equipment. Includes costs of commercially available personal 
property capable of stand-alone use in manufacturing supplies, 
performing services, or any general or administrative purpose (for 
example, machine tools, furniture, vehicles, computers, software, test 
equipment, including their accessory or auxiliary items). Software 
integrated into and necessary to operate another item of Government 
property is considered to be an auxiliary item (see FAR 45.501) and 
should be considered part of the item of which it is an integral part. 
Other software shall be classified as an individual item of equipment 
for reporting purposes if $100,000 or over. Software licenses are 
excluded. Contractors shall separately report: * * *
* * * * *
    (k) Agency-Peculiar Property. Includes costs of completed items, 
unique to NASA aeronautical and space programs which are capable of 
stand alone operation. * * *
* * * * *

    3. Amend section 1845.7101-2 by deleting the last two sentences in 
paragraph (a) and adding the following sentence at the end of paragraph 
(a) to read as follows:


1845.7101-2  Transfers of property.

* * * * *
    (a) * * * Shipping and receiving contractors shall promptly submit 
copies of shipping and receiving documents to the Center Deputy Chief 
Financial Officer, Finance, responsible for their respective contracts 
when accountability for NASA property is transferred to, or received 
from, other contracts, contractors, NASA Centers, or Government 
agencies.
* * * * *


1845.7101-3  [Amended]

    4. Amend section 1845.7101-3, in the first sentence of paragraph 
(b) by removing ``Special Test Equipment, Special Tooling, Agency 
Peculiar Property and Contract Work in Process'' and adding 
``property'' in its place.

[[Page 68535]]

1845.7101-4  [Amended]

    5. Amend section 1845.7101-4, in paragraph (g) by adding ``, or 
trade-ins'' at the end of the sentence.

[FR Doc. 02-28084 Filed 11-8-02; 8:45 am]
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