Property Management Regulations Regarding Government Furnished Property
And Subcontractor Acquired Property
Property Management Regulations 41 CFR 101
of Energy Property Management Regulations 41 CFR 109
Albuquerque Property Management Instructions (as of 4/28/98):
109-1.5203 Management of subcontractor-held personal property.
(f) DOE-owned personal property provided to subcontractors, or Cooperative
Research and Development Agreement (CRADA) participants, shall be provided
as Government-furnished property under the terms and conditions of the
subcontract or CRADA (i.e., not loaned). Such terms and conditions shall
require subcontractors and CRADA participants who are provided with DOE-owned
property under a subcontract or CRADA to:
(1) Assume the risk of, and be responsible for, any loss or destruction
of, or damage to, the property while in the subcontractor's/CRADA participant's
possession or control, except to the extent the subcontract, with the
advance approval of the AL Area Office, relieves the subcontractor from
such liability. In the absence of such approval, the subcontract shall
contain appropriate provisions requiring the return of the property in
as good conditions as when received, except for reasonable wear and tear
or for its use in accordance with the subcontract/CRADA;
(2) Promptly investigate and report all cases of loss, damage or destruction
of the property in its possession or control as soon as the facts become
(3) Ensure the property is used only as authorized by the contract/CRADA;
(4) Manage and control the property in accordance with the requirements
of the FPMR, DOE-PMR, and this ALPMI.
Los Alamos National Property Management Manual
Chapter 9 - Government Furnished Property
The term "government furnished property" means government-owned
property provided to or acquired by subcontractors in the performance
of LANL subcontracts. Examples are property provided to:
- vendors on LANL purchase orders and subcontracts
- affiliates paid by the Laboratory (e.g., consultants)
- organizations with agreements from LANL's Industrial Business Development
Program Office (IBD)
Note: The word "subcontract" also stands
for IBD agreements in the remainder of this chapter. A "subcontract" is
defined as an agreement (other than one involving an employer-employee
relationship) entered into by a federal government prime contractor
or subcontractor calling for supplies or services required for performance
of the contract or subcontract. Government furnished property (GFP)
is U.S. government property and may be used for official LANL work
only, as specified in the applicable subcontract. Subcontractor acquired
property (SAP) is considered GFP once the subcontractor is reimbursed
for it by the Laboratory.
DOE/UC Contract W-7405-ENG-36 1.1.o
All property numbered equipment items, including sensitive, at
a subcontractor's location are tagged and recorded in the property
database under the stewardship of the LANL organization that is a party
to the subcontract. Property Management (PM) may inspect subcontractors'
property records or the premises on which GFP is located at any reasonable
time until the completion or termination of the subcontracts.
Subcontractors are financially liable for shortage, loss, damage,
or destruction of GFP as soon as it comes into their custody. They
must have functioning property systems to control, protect, preserve
and maintain GFP. The systems are subject to review by LANL until the
completion or termination of the subcontracts.
Subcontractors in possession of government property worth a total
acquisition value of $500,000 or more must document their systems in
formal property management plans. The plans are approved by PM. The
PM may give expedited consideration to subcontractors' property systems
approved by other U.S. Government agencies. Subcontractors with amounts
of GFP less than $500,000 annually provide PM with information about
their property systems and how they control and use GFP.
Subcontractors are responsible for tagging, tracking, inventorying, maintaining,
properly using, and disposing of GFP according to LANL policies and federal
41 CFR 109-60
2.0 Industrial Business Development
The Industrial Business Development Program Office connects LANL's
scientific and technical talent with industry, universities and government.
The program supports ensuring national security and strengthening the
U. S. economic and energy technology base. Agreements for such efforts
are arranged by IBD.
The government considers property furnished under IBD agreements
to be the same as property furnished under LANL purchase orders or
procurement subcontracts. The property requirements for GFP on LANL
subcontracts applies to IBD agreements. Some of the types of IBD agreements
that permit GFP are to support the following endeavors:
- technical transfer
- cooperative research and development
- technical assistance
limited-term use of equipment by regional small businesses
Subcontractors must ensure that GFP is clearly marked as government property.
Any property not already marked is to be labeled before use. All property
numbered equipment items, including sensitive, must be tagged as described
Subcontractors must take adequate measures to safeguard government
property against loss, damage, theft, destruction, or unofficial use,
as specified in subcontracts and approved property management systems.
This includes responsibility for proper maintenance, requiring subcontractors
- ensure preventive maintenance
- immediately report to contract administrators and property administrators
(PAs) needed major repairs performed and its associated costs
- maintain records showing all maintenance and repair work
3.2 Property Management
Property and inventory records will be maintained that are sufficient
- track GFP
- achieve maximum utilization of property
- promptly identify and report excess property
- effectively protect property
- prepare property reports
- account for or return expense items upon completion or termination
of the subcontract
Subcontractors' records contain information similar to that maintained by
LANL for on-site equipment and will be made available to LANL upon request.
Subcontractors must complete property system questionnaires and
physical inventories as requested by the Property Operations Team of
PM. If requested to do so by their respective organizations, PAs may
visit subcontractor sites to assist with inventories.
As soon as a GFP item is no longer needed for the subcontracted
work, the subcontractor seeks instructions for its disposition. The
subcontractor then either returns the property as directed or disposes
of it according to instructions obtained from PM by Procurement or
Procurement and IBD are responsible for including the appropriate property
clauses in the LANL 's written subcontracts and for enforcing government
property policies and procedures applicable to those subcontracts.
Procurement, through contract administrators, and IBD, through
agreement administrators, must notify PM when it awards a subcontract
that authorizes furnishing GFP or acquiring SAP. Procurement and IBD
will provide PM the documentation pertaining to GFP/SAP. These organizations
also are responsible for ensuring that all GFP is recovered or accounted
for at the completion or termination of subcontracts.
PM reviews and approves subcontractors' property management systems,
provides LANL bar code tags to PAs for SAP, monitors GFP use and control,
and determines final disposition of property. The Property Operations
Team maintains GFP records and tracks GFP until its proper disposition
The requester is the LANL individual who represents his or her
organization to accomplish the subcontracted work. LANL requesters
cooperate with Procurement and PM in discharging their responsibilities;
they must inform the Property Operations Team of PM of the appropriate
use and requested disposition of GFP.
4.1 Acquisition and Receipt
The subcontractor acquires SAP through their normal purchasing
procedures. After receiving the items, subcontractors send invoices
listing the purchased items to LANL for reimbursement.
The invoices should list each item purchased, including the item's:
- manufacturer's name
- model number
- serial number
- acquisition cost
Property Accounting initiates the procedure for off-site property
deliveries. Government owned property is provided to subcontractors
using Shipping Requests prepared and signed by PAs. SMs must list the
appropriate contract number.
If equipment had to be purchased by LANL to fulfill its responsibility
under the contract, PAs list the pertinent purchase order number. SRs
must be signed by the contract administrator and the requester. The
PA is responsible for updating the property's location in the property
database. For property numbered items, Property Accounting updates
the status subaccount, transaction document, and date fields in the
4.4 Segregation of Property
Property also may be paid for directly by LANL but delivered directly
to the subcontractor. GFP shall be segregated from subcontractor owned
- the subcontractor is an educational institution with a research
and development contract
- the subcontract specifically allows commingling the property or
- segregation would materially hinder the progress of the work because
of the quantities involved, lack of space, costs caused by additional
Except for educational institutions, commingling must be approved
in advance by the requester. The subcontractor writes a memo explaining
why commingling is requested and sends it to the requester. If the
requester approves, he or she signs it and returns the original to
the subcontractor. Copies are provided to the PA, PM, and Procurement.
All subcontractors must conduct annual inventories of their property
numbered items of GFP and any other items so designated by the Laboratory.
The Disposition Team sends a Property Report Form (contact
C&D at firstname.lastname@example.org for a copy) that
must be completed and returned within 30 days.
The Property Report lists all property numbered items in the possession
of the subcontractor, including the following information:
- property number
- property description (manufacturer's name and item's model number)
- serial number
- unit cost
- total cost
if any items are idle, under-used or unneeded
the date the physical inventory was completed
PM compares the completed report to records in the property database.
It notifies the subcontractor by memo of any discrepancies and works
with the subcontractor to reconcile them according to LANL policies
and the terms of the contract.
In lieu of this property report procedure, GFP may be physically
inventoried by the custodial organization's PA.
4.6 Closing a Subcontract
When the tasks in a subcontract are nearing completion or the subcontract
is terminated, Procurement begins the closure process. It notifies
in writing the subcontractor, the Property Operations Team, and
Unless stipulated otherwise in the subcontract, the subcontractor
must provide on a Property Report provided by PM a list of GFP still
in its possession, including expense items. It also must explain in
a memo how expense items provided but not on the list or previously
returned were used. PM compares the list and memo to its records and
resolves any discrepancies jointly with the subcontractor, Procurement,
and the requester.
The requester suggests through Procurement the final disposition
of the property. It may be retained by the subcontractor as partial
payment, returned to the organization, transferred to another subcontract,
excessed, or retired according to LANL policy.
PM decides the final disposition. It issues instructions to Procurement,
which sends them to the subcontractor and oversees their accomplishment
in cooperation with the organizational PA. The Property Operations
Team of PM does not close its file until all government property is
Los Alamos National Property Management Manual
Chapter 1 - General Property Policies (excerpts)
6.3 Property Marking
All government-owned equipment and materials will be marked
as U. S. Government property unless it is impractical to mark them or
marking is not required by regulation.
6.4 Property Numbers and Record keeping
Property items categorized as equipment or sensitive equipment
will be identified by means of barcode labels displaying a unique property number ("tags"). These categories are defined as follows:
Sensitive items (see Sensitive Item List below)
·are easily converted to personal use or sold for cash
·are more susceptible to theft than other property
·have no minimum acquisition cost threshold
·have the potential for maintaining their integrity (i.e., not expendable
due to use)
6.5 Sensitive Item List (no minimum dollar levels apply to
any item on the list)
Cameras - digital, still, TV, movie, and video (Except disposable,
Polaroid, close-up, oscilloscope, x-ray, surveillance, photo macro-graphic,
and photo micrographic)
Personal Computers - includes work stations and desktop, server,
laptop, notebook, and hand-held PCs
Recorders video, tape, video cassette (VCR), dictation machines,
digital, compact audio disc (CD), digital video disc (DVD), and digital
Telephones cellular and mobile only
- do not meet the definition for sensitive items
- have initial acquisition or fabrication costs of $5000 or more
- have the potential for maintaining their integrity(i.e., are not expendable
due to use)
Los Alamos National Property Management
Chapter 2 - Acquisition (excerpts)
Property will be labeled "U.S.
Government Property - Los Alamos," if possible.
Labels must be placed on surfaces that are readily visible to a user and not
likely to be damaged or obscured.
5.1 Off-Site Policy
Property-numbered LANL items received
at off-site locations must be identified with a LANL barcode label.
Los Alamos National Property Management
1.0 Policies on Managing High Risk Property
Chapter 11 - High Risk Property (excerpts from)
High risk personal
property shall be managed to protect the public, employees and the
environment and to advance the national security and nuclear nonproliferation
objectives of the U.S. Government. In no case shall property be transferred,
disposed of, or released to the public unless it receives a high risk
review and is handled accordingly. It is the responsibility of the
Lab to manage and control Government-owned high risk personal property
in an efficient manner.
UC/DOE contract, clause 6.12(f)
41 CFR 101-42
41 CFR 109-1.1 and 109-1.53
22 CFR 121
2.1 Especially Designed or Prepared Property
Equipment, materials, and technology designed or prepared especially for use
in the nuclear fuel cycle and described in the IAEA Information Circular
254, Part 1, the Nuclear Suppliers Group Trigger List.
2.2 Export Controlled Property
Property subject to export licensing by the Department of Commerce or Department
of State, the Nuclear Regulatory Commission, or authorization by the DOE.
(This includes items on the U.S. Munitions List, which are controlled by
the Department of State and are found in 22 CFR 121).
2.3 Nuclear Weapon Components or Weapon-Like Components
Parts of whole war reserve nuclear weapons, joint test assemblies, trainers,
or test devices, including associated testing, maintenance, and handling
equipment, or items that simulate such parts. If classified, their disposition
is determined by the Atomic Energy Act of 1954, as amended, and if unclassified,
by DOE technical experts on the basis of reviews approved by the director
of the Office of Defense Nuclear Nonproliferation.
2.4 Proliferation-Sensitive Property
Nuclear-related or dual-use equipment, material or technology described in
the Nuclear Suppliers Group Trigger List or Dual-Use List (IAEA Information
Circular 254, Part 2) or equipment, material or technology used in the
research design, development, testing, or production of nuclear or other