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DOE G 580.1-1
12-7-05
DEPARTMENT OF ENERGY
PERSONAL PROPERTY MANAGEMENT
GUIDE
An Implementation Guide
for the
DOE Personal Property Management Program
[This Guide describes suggested nonmandatory approaches for meeting requirements.
Guides are not requirements documents and are not construed as requirements in any
audit or appraisal for compliance with the parent Policy, Order, Notice, or Manual.]
SEAL
U.S. Department of Energy
Washington, D.C. 20585
FOREWORD
This Personal Property Management Guide is the second Department of Energy (DOE)
directive developed to replace most parts of the DOE Property Management Regulations
(DOE-PMR). The other directive is
DOE O 580.1, Department of Energy Personal Property
Management Program, dated 12-7-05, which sets forth
Departmental requirements regarding standards, practices, and
performance expectations; program responsibilities, and intended
contractor requirements.
Collectively, these two directives fulfill the longstanding commitment by the Department to
reduce or eliminate the DOE-PMR. Established as a two-phase goal in 1995, Phase I
produced an updated DOE-PMR, published in May 1998, to replace an obsolete, 14-year-old
edition of the regulation that was then in effect. Shortly after Phase II began, a decision was
made to place it on hold as the General Services Administration (GSA) began its effort to
develop a successor regulation—the Federal Management Regulations (FMR)—to the
Federal Property Management Regulations (FPMR). When the direction and the pace of the
GSA effort became clear, the Department opted to pursue partial elimination of the
DOE-PMR.
This Guide provides nonregulatory guidance and information to assist DOE organizations and
contractors in implementing the DOE-wide and site-specific personal property management
programs. It supplements the policy, requirements, and responsibilities information contained
in the DOE Order cited above and the regulatory requirements contained in FPMR and FMR.
This Guide consists of parts and chapters, and includes the following types of material:
* Guiding principles—essential objectives that, when satisfied, provide a measure of the
effectiveness and efficiency of property systems.
* Best practices—practical techniques to be followed by DOE and contractor personal
property management functions.
* Internal Departmental procedures.
* Samples of forms and other useful documentation.
* Subject matter previously issued through Personal Property Letters.
While this Guide is also intended to serve as a primer on various personal property management
issues, it does not provide a lengthy discussion on any subject. Users of this Guide are
encouraged to consult other materials that are referenced in each section of the Guide for
supplemental information.
This Guide is issued and maintained by the Office of Resource Management, Office of
Procurement and Assistance Management within the Office of Management. It will be amended
to add new guidance or revise existing material as necessary. Questions regarding specific topics
in the Guide may also be directed to this office at 202-287-1563.
CONTENTS
SECTION I—GENERAL
CHAPTER 1 PROPERTY MANAGEMENT REGULATION
AND DIRECTIVES SYSTEMS I-1
CHAPTER 2 DEFINITIONS AND ACRONYMS I-5
CHAPTER 3 AUTHORITIES AND RESPONSIBILITIES I-17
CHAPTER 4 APPOINTMENTS I-19
CHAPTER 5 CAREER DEVELOPMENT AND TRAINING I-33
SECTION II—PROGRAMS, PRINCIPLES, STANDARDS, AND PRACTICES
CHAPTER 6 PERSONAL PROPERTY MANAGEMENT PROGRAMS II-1
CHAPTER 7 THE BALANCED SCORECARD (BSC) PROGRAM II-5
CHAPTER 8 PRINCIPLES, STANDARDS, AND PRACTICES II-11
CHAPTER 9 FEDERAL OVERSIGHT OF OFF-SITE CONTRACTORS II-21
CHAPTER 10 CONTRACTOR OVERSIGHT OF SUBCONTRACTORS II-27
CHAPTER 11 LOANS OF PERSONAL PROPERTY II-31
CHAPTER 12 LOSS, DAMAGE, OR DESTRUCTION OF PERSONAL PROPERTY II-37
CHAPTER 13 ACTIVITY ADDRESS CODES II-41
CHAPTER 14 RESERVED II-47
SECTION III—ASSET MANAGEMENT
CHAPTER 15 HIGH RISK PERSONAL PROPERTY III-1
CHAPTER 16 PRECIOUS METALS III-9
CHAPTER 17 MOTOR EQUIPMENT III-13
CHAPTER 18 IDLE EQUIPMENT III-29
CHAPTER 19 RESERVED III-33
CHAPTER 20 RESERVED III-35
SECTION IV—UTILIZATION AND DISPOSAL
CHAPTER 21 ROLES, SYSTEMS, REPORTS, AND SPECIAL HANDLING
AND/OR APPROVALS IV-1
CHAPTER 22 SALE OF SURPLUS PERSONAL PROPERTY IV-7
CHAPTER 23 FIREARMS IV-13
CHAPTER 24 USED ENERGY-RELATED LABORATORY EQUIPMENT
(ERLE) GRANT PROGRAM IV-23
CHAPTER 25 OTHER EDUCATION ENHANCEMENT PROGRAMS IV-27
CONTENTS (continued)
CHAPTER 26 ECONOMIC DEVELOPMENT PROPERTY IV-35
CHAPTER 27 PERSONAL PROPERTY IN A MIXED FACILITY IV-45
CHAPTER 28 PERSONAL PROPERTY IN FOREIGN AREAS IV-47
SECTION I
GENERAL
CHAPTER 1
PROPERTY MANAGEMENT REGULATION
AND DIRECTIVES SYSTEMS
[References: 41 CFR 101 and 102; 48 CFR; 48 CFR 109; DOE O 580.1; DOE P 251.1;
Acquisition Letter 95-06]
1.1 Overview
This chapter addresses the Federal property management regulation systems and the DOE
directives system.
1.2 Guiding Principles
To the maximum practical extent, authority is delegated to those individuals who are responsible
and accountable for the work actions.
Direction and guidance are provided only to the degree necessary to ensure a clear understanding
of Federal and DOE property management policies and procedures.
1.3 The Federal Property Management Regulations System
The Federal property management regulations system currently consists of policies and
procedures published in four chapters of the Code of Federal Regulations (CFR):
* 41 CFR 101, Federal Property Management Regulations (FPMR);
* 41 CFR 102, 109 Federal Management Regulation (FMR);
* 48 CFR 1, Federal Acquisition Regulation (FAR); and
* 48 CFR 9, DOE Acquisition Regulation (DEAR).
The FMR is the designated successor regulation to the FPMR. Since the succession is occurring
as a part-by-part conversion, parts of the FPMR will be in effect until their replacement FMR
parts are codified.
Unless specified by contract, the property policies and procedures contained in FAR Part 45 and
DEAR Part 945 do not apply to DOE contractors. These contractors are subject to the property
policies and procedures specified by the contract clause in 48 CFR 970.5245-1, Property.
1.4 DOE Directives System
The DOE directives system includes policies, orders, notices, manuals, regulations, technical
standards, and guides that:
* Direct, guide, inform, and instruct employees in the performance of their jobs; and
* Enable them to work effectively within the Department and with other agencies,
contractors, and the public.
The DOE directives system is used to describe and communicate the DOE personal property
management program:
* Program requirements and responsibilities are contained in DOE O 580.1, Department of
Energy Personal Property Management Program.
* Nonregulatory guidance and information is contained in DOE G 580.1-1, Department of
Energy Personal Property Management Guide.
Collectively, these two directives replace the DOE Property Management Regulations
(DOE-PMR) with the exception of high risk, motor equipment, and the Energy Related
Laboratory Equipment (ERLE) Grant Program, which remain in the DOE-PMR.
1.5 Personal Property Letters and Bulletins
Personal Property Letters (PPLs) are used to provide temporary guidance (not to exceed one
year) to DOE contracting activities regarding the implementation of the property provisions
contained in the DEAR.
Bulletins are used to disseminate personal property management information or to clarify
instructions contained in the FMR or FPMR.
1.6 Applicability of the CFR and the DOE Directives
The terms DOE organization and DOE contractor in the 580 series of DOE directives are used as
defined in this Guide.
The codified personal property management provisions and requirements of the FMR and FPMR
apply to:
* DOE organizations, as defined in this Guide, that have personal property management
responsibilities.
* DOE contractors that are responsible for the management and operation of DOE-owned
facilities and whose contracts contain the property provisions of section 970.5245-1 of
the DEAR; and other DOE contractors as determined by the DOE Procurement Executive
or Head of a Contracting Activity (HCA).
The codified personal property management provisions and requirements contained in Part 45 of
the FAR and Part 945 of the DEAR apply to:
* DOE organizations that manage contracts containing one of the property contract clauses
from FAR Part 52.
* DOE contractors whose contracts contain one of the property contract clauses from FAR
Part 52.
The codified personal property management standards, provisions and requirements contained in
10 CFR Part 600 of the Energy Regulations apply to recipients of DOE grants and cooperative
agreements.
The 580 series of the DOE directives apply to DOE organizations and to DOE contractors to the
extent indicated in each directive.
1.7 Deviations from the CFR and DOE Directives
The Administrator of General Services grants deviations from the requirements of the FMR,
FPMR and FAR. The Property Executive grants waivers from requirements specified in the
DEAR and DOE O 580.1. When requesting deviation authority, the Organizational Property
Management Officer (OPMO) forwards the request, with supporting documentation, to:
* The Property Executive for property matters not related to aviation; and
* The DOE Senior Aviation Management Official for aviation related matters.
* Deviation requests contain the following information:
> A statement of the deviation desired, including identification of the specific paragraph
number(s) of the FMR, FPMR, FAR, DEAR, or DOE Order;
> The reason why the deviation is considered necessary or would be in the best interest
of the Government;
> A statement as to whether the deviation has been requested previously and, if so,
circumstances of the previous request;
> A description of the intended effect of the deviation;
> A statement of the period of time for which the deviation is needed; and
> Any background information that will contribute to a full understanding of the desired
deviation.
CHAPTER 2
DEFINITIONS AND ACRONYMS
[References: 41 CFR 101, 102, and 109, 48 CFR 970.5204-21; DOE O 580.1]
2.1 Overview
DOE has adopted the terms and definitions contained in the American Society for Testing and
Materials (ASTM) International voluntary consensus standard called Practice E2135-02,
Standard Terminology for Property and Asset Management. See Chapter 8 for further guidance
on voluntary consensus standards.
In addition to these terms and definitions, this chapter provides definitions and acronyms for
terms that are used in this Guide and in the DOE policy and Order that this Guide supplements.
Like all Federal agencies, DOE is bound by applicable statutory definitions. In those instances
where identical or similar terms are defined differently in the ASTM standard and in the FMR,
FPMR, and this chapter, the latter definitions have precedence.
2.2 Definitions
Administratively controlled items—those personal property items for which there is no
Departmental requirement for formal property records to be maintained, but for which DOE
offices have determined that property records will be maintained for various control purposes.
Approving authority—the OPMO or other designated individual authorized to approve a loan.
Automatic data processing equipment (see definition for information technology). Note: This
cross-reference will serve as a transitional reference until the term information technology is
used more broadly within the DOE Complex.
Book value—acquisition cost less depreciation.
Borrower—a DOE office, contractor, facility or other Federal, State, or local government agency
or other organization that can provide a valid Federal contract number or other official basis for
the loan of property.
Component—one of the parts that make up a system. A component may be hardware, software,
or firmware and may be subdivided into other components.
Contracting activity—an organizational element that has the authority to award and administer
contracting and financial assistance instruments.
Contracting Officer—an employee authorized to enter into, administer, and/or terminate
contracts, financial assistance awards, leases, and/or sales contracts and make related
determinations and findings.
Demilitarization—the act of destroying the military offensive or defensive advantages inherent
in certain types of equipment or material, using the methods specified in the Defense
Demilitarization Manual, DoD 4160.21-M-1.
DOE Contractor—an on-site contractor, such as a management and operating (M&O)
contractor, an environmental restoration and management contractor, or other major prime
contractor located at a DOE site, having a contract that includes DOE O 580.1 as a contract
requirement.
DOE Financial Assistance Rules—the DOE regulations that establish a uniform administrative
system for application, award, and administration of assistance awards, including grants and
cooperative agreements.
DOE organization—
* A DOE Federal management activity, such as an Operations Office, Support Office, Field
Office, Area Office, Site Office, and Project Office.
* DOE laboratory staffed by Federal employees.
* The NNSA, except where specifically excluded.
DOE screening period—the period of time that reportable excess personal property is screened
throughout DOE for reutilization purposes and, for selected items, through the Used
Energy-Related Laboratory Equipment (ERLE) Grant Program.
Departmental Motor Equipment Fleet Manager—the individual responsible for developing and
implementing DOE motor equipment policy and for conducting oversight of the DOE motor
equipment program. The individuals designated as Property Executives are the Departmental
Motor Equipment Fleet Managers for their respective organizations.
Direct operations—operations conducted by DOE personnel.
Disposal—the process of redistributing, transferring, donating, selling, abandoning, destroying,
or other disposition of Government-owned personal property.
Domestic loan—the temporary transfer of idled U.S. Government property or materials to a DOE
office or contractor, laboratory, or other government entity for uses that will benefit the U.S.
Government and the borrower.
Education-related and Federal research equipment—includes but is not limited to DOE-owned
property in FSCG 34, 36, 41, 52, 60, 61, 66, 67, 70, and 74, and other related equipment, which
is deemed appropriate for use in improving math and science curricula or activities for
elementary and secondary school education, or for the conduct of technical and scientific
education and research activities.
Educationally useful Federal equipment—computers and related peripheral tools (e.g., printers,
modems, routers, and servers), including telecommunications and research equipment, which are
appropriate for use in prekindergarten, elementary, middle, or secondary school education. It
also includes computer software, where the transfer of licenses is permitted.
Elementary and secondary schools—individual public or private educational institutions
encompassing kindergarten through twelfth grade, as well as public school districts.
Eligible institution—any nonprofit educational institution of higher learning, such as universities,
colleges, junior colleges, and technical institutes or museums located in the United States and
interested in establishing or upgrading energy-oriented education programs.
Eligible recipient—local elementary and secondary schools and nonprofit organizations.
Energy-oriented education program—one that deals partially or entirely in energy or energy-
related topics.
Equipment—for property management purposes, any item of personal property having a unit
acquisition cost of $5,000 or more and having the potential for maintaining its integrity (i.e., not
expendable due to use) as an item.
Equipment held for future projects—equipment being retained, based on approved justifications,
for a known future use, or for a potential use in planned projects.
Especially designed or prepared property—equipment, materials, and technology designed or
prepared especially for use in the nuclear fuel cycle and described in the International Atomic
Energy Agency Information Circular 254 Part 1, the Nuclear Suppliers Group Trigger List.
Experimental vehicle—a vehicle acquired solely for testing and research purposes or otherwise
designated for experimental purposes. Such vehicles are the object of testing and research as
differentiated from those used as vehicular support to testing and research. Experimental
vehicles are not used for passenger carrying services unless required as part of a
testing/evaluation program, and are not subject to statutory price limitations or authorization
limitations.
Export controlled information—unclassified U.S. Government technical information under DOE
cognizance that, if proposed for export by the private sector, would require a Department of
Commerce or Department of State validated license or a DOE authorization, and which, if given
uncontrolled release, could reasonably be expected to have adverse affect on U.S. national
security or nuclear nonproliferation objectives.
Export controlled property—property which is subject to licensing by the U.S. Department of
Commerce, the U.S. Department of State or the U.S. Regulatory Commission, or authorization
by the U. S. Department of Energy.
Facility in standby—a complete plant or section of a plant, which is neither in service or
declared excess.
Facilities under DOE field organization cognizance—national laboratories, production plants,
and project sites managed and operated by DOE contractors or subcontractors.
Foreign—any area outside the United States, Puerto Rico, American Samoa, Guam, the Trust
Territory of the Pacific Islands, and the Virgin Islands.
Foreign loan—any foreign shipment of government property or materials to a non-DOE
recipient, and which property or materials does not involve joint exercises or joint use between
DOE and the foreign recipient for uses that will benefit the U.S. Government and the borrower.
The following are not considered foreign loans:
* Property used by DOE and DOE contractors for meetings or brief assignments on foreign
soil;
* Property used by DOE and DOE contractors on extended assignments on foreign soil;
* Property specifically identified in Treaties or International Agreements;
* Property sent out for repairs or maintenance; and
* Property specifically identified in joint research and development projects, collaborative
agreements, joint experiments, or other joint use agreements.
Foreign Service post—the local diplomatic or consular post in the area where the excess personal
property is located.
Hazardous property—any personal property, including scrap or waste, that is ignitable,
explosive, corrosive, reactive, or toxic because of its quantity, concentration, or physical,
chemical, or infectious characteristics, or that is deemed a hazardous material, chemical
substance or mixture, or hazardous waste under the Hazardous Material Transportation Act, the
Resource Conservation and Recovery Act, or the Toxic Substances Control Act. Such property
can be in solid, liquid, semi-liquid, or contained gas form and may cause or significantly
contribute to an increase in mortality or illness, or pose present or potential hazards to human
health or the environment when improperly used, treated, stored, transported, disposed of, or
mismanaged. Among other things, it includes hazardous materials and hazardous wastes as
defined in the FPMR.
Head of the Contracting Activity—the head of a Departmental element who has been delegated
authority by the Director for Procurement and Assistance Management to: award and administer
contracts, sales contracts, and/or financial assistance instruments; appoint contracting officers,
OPMOs or PAs to represent him/her in administering all contract requirements and obligations
relating to Government personal property; and exercise the overall responsibility for managing
the contracting activity.
Heads of field organizations—the heads of any Departmental office located outside the
Washington, D.C. metropolitan area. In addition, the Federal Energy Regulatory Commission
and the Office of Headquarters Procurement Operations are considered field organizations for
purposes of the DOE 580 series directives.
High risk personal property—property that, because of its potential impact on public health and
safety, the environment, national security interests, or proliferation concerns, must be controlled,
and disposed of in other than the routine manner. The categories of high risk property, defined
separately in this chapter.
Idle property—property or material that is not currently being used but that is not excess.
Information technology—any equipment, or interconnected system or subsystem of equipment,
which is used in the automatic acquisition, storage, manipulation, management, movement,
control, display, switching, interchange, transmission, or reception of data or information.
Information technology requires high risk controls when it meets any one or more of the
following conditions:
* It was used to process classified information, unclassified controlled nuclear information,
or export controlled information;
* It cannot be certified as sanitized, ensuring all data, information, and software has been
removed from the equipment; and
* It is a computer, or series of computers, categorized by the Department of Commerce as a
“high performance computer” or “general purpose computer” and has a composite
theoretical performance capability exceeding a specified MTOPS.
Initiator—the property custodian, Loan Agreement Coordinator, or other authorized individual
who originates or establishes the loan.
Inventories—stocks of stores, construction, supplies, and parts used in support of DOE
programs.
Inventory by exception—a physical inventory method used to verify and document the existence
and location of those items of property whose existence and location have not been verified and
documented since the last physical inventory. This method may be used for property that is
subject to calibration, maintenance, movement, network operation, or some other form of activity
that is documented by a controlling entity.
Inventory management—the efficient use of methods, procedures and techniques for recording,
analyzing, and adjusting inventories in accordance with established policy. The following
related functions are included:
* Providing adequate protection against misuse, theft, and misappropriation.
* Providing accurate analyses of quantities to determine requirements so that only minimal
obsolescence losses will be encountered, while ensuring adequate inventory levels to
meet program schedules.
* Providing adequate and accessible storage facilities and services based upon analyses of
program requirements so that a minimum and economical amount of time is required to
service the program.
Lender—the Federal agency or contractor organization responsible for property being loaned.
Loan agreement coordinator—the DOE or contractor individual who is responsible for
documenting and controlling property on DOE loan agreements.
Military property—tangible assets that have an estimated useful life of two or more years; are not
intended for sale; are intended to be used or available for use in the performance or military
missions (to include equipment used in training) and are valued at $100,000 or more.
Mixed facility—a facility that is partially DOE-owned and partially contractor owned. The
definition does not apply to a facility that is partially owned by an educational or other nonprofit
institution under a basic research contract with DOE.
Motor equipment—any item of equipment which is self-propelled or drawn by mechanical
power, including motor vehicles, motorcycles and scooters, construction and maintenance
equipment, materials handling equipment, and watercraft.
Motor Equipment Fleet Manager—the individual responsible for directing the operation of the
motor equipment fleet.
Motor vehicle—any equipment, self-propelled or drawn by mechanical power, designed to be
operated principally on highways in the transportation of property or passengers.
Munitions List Items—any item contained in the U.S. Munitions List, 22 CFR 121.
Nuclear weapon components or nuclear weapon-like components—parts of whole war reserve
nuclear weapons, or of joint test assemblies, trainers, or test devices, including associated testing,
maintenance, and handling equipment, or simulate such parts. If the items are classified, the
Atomic Energy Act of 1954, as amended, determines their disposition. If the items are
unclassified, their disposition is determined by DOE technical experts on the basis of reviews
approved by the Director of the Office of Nonproliferation and National Security.
Nuclear Suppliers Group Dual-Use List—nuclear-related material, equipment, and related
technology as described in the International Atomic Energy Agency Information Circular 254
Part 2.
Nuclear Suppliers Group Trigger List—nuclear material, equipment, and related technology as
described in the International Atomic Energy Agency Information Circular 254 Part 1.
Organizational Motor Equipment Fleet Manager—the Federal individual responsible for
establishing and administering the organization’s motor equipment program.
Organizational Property Management Officer—the individual, designated by the Head of a
Contracting Activity, responsible for establishing and administering the organization's personal
property management program.
Personal property—property of any kind, except for:
* Real estate, interests therein (such as easements and rights-of-way), and permanent
fixtures which are Government owned, chartered, rented, or leased from commercial
sources by and in the custody of DOE or its contractors.
* Source, byproduct, special nuclear materials, and atomic weapons as defined in section
11 of the Atomic Energy Act of 1954 (42 U.S.C. 2014), as amended.
* Petroleum in the Strategic Petroleum Reserve and the Naval Petroleum Reserves.
Personal property management—the development, implementation, and administration of
policies, standards, programs, practices and procedures for effective and economical acquisition,
receipt, storage, issue, use, control, physical protection, care and maintenance, determination of
requirements, maintenance of related operating records, and disposal of personal property
(exclusive of the property accounting records).
Precious metals—uncommon and highly valuable metals, including gold, silver, and the
platinum group metals—platinum, palladium, rhodium, iridium, ruthenium and osmium.
Procurement Executive—an individual designated by the Secretary, pursuant to section 16(3) of
the Office of Federal Procurement Policy Act, to manage and direct the acquisition system of the
executive agency, including the implementation of unique acquisition policies, regulations, and
standards of the executive agency. The Under Secretary of Energy, the Administrator of NNSA,
and the Director of Procurement and Assistance Management are designated Procurement
Executives.
Proliferation-sensitive property—nuclear-related or dual-use equipment, material, or technology
described in the Nuclear Suppliers Group Trigger List and Dual-Use List or equipment, material
or technology used in the research, design, development, testing, or production of nuclear
weapons.
Property Administrator—the individual designated as the authorized representative of the
Contracting Officer assigned to administer the contract requirements and obligations relating to
Government personal property, including, but not limited to, evaluating contractor personal
property management programs and making recommendations concerning acceptability of the
contractor property management systems.
Property custodian—the DOE Federal or contractor individual who is responsible for the
protection, control, and proper use of property under his or her stewardship.
Property Executive—an individual designated by a Procurement Executive as being responsible
for the development, promotion, monitoring, administering, coordination and evaluation of the
Department-wide personal property management program. The Director, Office of Resource
Management and the Director of Procurement and Assistance Management, NNSA, are
designated Property Executives.
Radioactive property—any item or material which is radioactive or radioactively contaminated
and which emits ionizing radiation in excess of background radiation as measured by appropriate
instrumentation.
Sensitive items—those items, regardless of value, that require special control and accountability
because of susceptibility to unusual rates of loss, theft, or misuse, or due to national security and
export control considerations. Items include, but are not limited to, weapons, ammunition,
explosives, classified property, laptops, computers, personal digital assistants, other information
technology equipment and removable components with memory capability.
Spare equipment—items held as replacement spares for equipment in current use in DOE
programs.
Special nuclear material—plutonium, uranium 233, uranium enriched in the isotope 233 or in
the isotope 235, any other materials that the Nuclear Regulatory Commission, pursuant to the
Atomic Energy Act of 1954, as amended, determines to be special nuclear material, or material
artificially enriched by the foregoing, but does not include source material.
Special purpose vehicles—vehicles that are used or designed for specialized functions. They are
not generally used to carry passengers, freight, or other materials. Vehicles other than passenger
vehicles that are used only during a defined or special contingency, such as evacuation or other
similar emergency, may also be classified as special purpose vehicles. These vehicles include,
but are not limited to: trailers, semi-trailers, other types of trailing equipment, trucks with
permanently mounted equipment (such as aerial ladders), construction and other types of
equipment set forth in Federal Supply Classification Group (FSCG) 38, material handling
equipment set forth in FSCG 39, and fire fighting equipment set forth in FSCG 42. For reporting
purposes within DOE, motorcycles and motor scooters will also be reported as special purpose
vehicles.
Stock record—a device for collecting, storing, and providing historical data on recurring
transactions for each line item of inventory.
Sub-store—a geographically removed part of the main store's operation conducted as a
subordinate element of it and subject to the same management policies and inventory controls.
Systems contracting—a materials management purchasing technique for the purchase of general,
common-use, and repetitive supply items in a particular product family. An example is office
supplies, purchased from a commercial vendor, that are needed for immediate use instead of
purchasing in bulk for future use, storing in warehouses, and issuing to customers by use of a
requisitioning system. Systems contracting and just-in-time contracting are synonymous.
Unclassified controlled nuclear information—U.S. Government information pertaining to atomic
energy defense activities as defined in section 148 of the Atomic Energy Act of 1954, as
amended. Such information can relate to aspects of nuclear weapons design, development, and
testing; physical security; production; or utilization facilities.
United States Munitions List—articles, services, and related technical data designated as defense
articles and defense services by the Arms Export Control Act.
Watercraft—any vessel used to transport people or material on water.
2.3 Acronyms
AAC Activity Address Code
ASTM American Society for Testing and Materials
BATF Bureau of Alcohol, Tobacco, and Firearms
BCPMSR Business Center for Precious Metals Sales and Recovery
BOA Basic Ordering Agreement
CFL Computers for Learning
CFR Code of Federal Regulations
CRO Community Reuse Organization
CSC Customer Supply Center
DCMA Defense Contract Management Agency
DEAR Department of Energy Acquisition Regulation
DMEFM Departmental Motor Equipment Fleet Manager
DoD Department of Defense
DOE Department of Energy
DRMO Defense Reutilization and Marketing Office
DRMS Defense Reutilization and Marketing Service
DTID Disposal Turn-In Document
EADS Energy Assets Disposal System
ECCN Export Control Classification Number
ECI Export Controlled Information
EHFFP Equipment Held for Future Projects
EOQ Economic Order Quantity
ERLE Energy-Related Laboratory Equipment
FAA Federal Aviation Administration
FAR Federal Acquisition Regulation
FAMIS Federal Aviation Management Information System
FEDS Federal Disposal System
FEDSTRIP Federal Standard Requisitioning and Issue Procedures
FMR Federal Management Regulations
FPMR Federal Property Management Regulations
FSC Federal Supply Classification
FSCG Federal Supply Classification Group
GAO General Accounting Office
GSA General Services Administration
GVWR Gross Vehicle Weight Rating
HCA Head of the Contracting Activity
HFO Head of Field Organization
HR High Risk
INFCIRC Information Circular
ICPT Integrated Contractor Purchasing Team
IFMS Interagency Fleet Management System
IT Information Technology
LOA Letter of Authorization
M&O Management and Operating
MCTL Military Critical Technologies List
MEFM Motor Equipment Fleet Manager
MILSTRIP Military Standard Requisitioning and Issue Procedures
MOU Memorandum of Understanding
NNSA National Nuclear Security Administration
NPMA National Property Management Association
NTSB National transportation Safety Board
OMEFM Organizational Motor Equipment Fleet Manager
ORM Office of Resource Management
OPAM Office of Procurement and Assistance Management
OPMO Organizational Property Management Officer
OPSEC Operations Security
PA Property Administrator
PE Property Executive
PIDS Property Information Database System
PMCO Precious Metals Control Officer
POC Point of Contact
PPL Personal Property Letter
SASP Small Arms Serialization Program
SNM Special Nuclear Material
SRS Savannah River Site
UCNI Unclassified Controlled Nuclear Information
USC United States Code
CHAPTER 3
AUTHORITIES AND RESPONSIBILITIES
[References: 41 CFR 101, 102 and 109; 48 CFR 1-42.201 and 42.302; and DOE O 580.1]
3.1 Overview
This chapter addresses Headquarters and field organization property management authorities and
responsibilities.
3.2 Guiding Principles
Authorities and responsibilities need to be clearly defined and stated.
Authority is delegated to the maximum extent possible to those individuals responsible and
accountable for the work actions.
3.3 Authorities
The Secretary of Energy is authorized to acquire, manage, and dispose of personal property held
by the Department for official use by its employees and contractors. That authority is delegated,
through a series of successive delegations, to:
* DOE Headquarters
> The Director, Office of Management.
> The Director, Office of Procurement and Assistance Management.
> The Director, Office of Resource Management.
* The Director, Headquarters Office of Administration and the heads of field organizations.
These officials may delegate that authority to other responsible officials of their
organizations.
* NNSA Headquarters
> The Administrator.
> The Director, Office of Procurement and Assistance Management.
3.4 Responsibilities
DOE Federal employee responsibilities for the acquisition, management, disposition, and
oversight of personal property held by DOE and its contractors are specified in DOE O 580.1,
Department of Energy Personal Property Management Program.
DOE contractor responsibilities for the acquisition, management, disposition, and oversight of
personal property in their possession and in the possession of their subcontractors are specified in
Attachment 2, Contractor Requirements Document of DOE O 580.1.
CHAPTER 4
APPOINTMENTS
[References: 41 CFR 101-1.101; 48 CFR 1.603 and 2.101; and 48 CFR 901.601]
4.1 Overview
This chapter addresses the process used to make OPMO and PA appointments.
4.2 Guiding Principles
The OPMO appointment is given to an individual who is qualified to establish and administer a
personal property management program for the organization.
The PA appointment is given to an individual who is qualified to represent the contracting
officer in the administration of contract.
4.3 Background
The authority and the responsibility for appointing OPMOs and PAs are delegated from the
Secretary of Energy, through a series of successive delegations, to the Heads of the Contracting
Activity (HCA) or their designees.
4.4 Nomination
Nominees for appointment submit a personal qualifications statement and a written
recommendation from their current supervisor.
The personal qualification statement should include, as a minimum, the following information:
* Brief description of positions held in Government and private industry.
* Formal education completed and degree(s) earned.
* A list of completed, related training (see the Property Management Program Module in
DOE O 361.1, Acquisition Career Development Program for a list of core and desired
courses).
* A list of the core courses needed for unrestricted appointment with projected completion
dates (if not all of the core courses listed in DOE Order 361.1 have been completed).
* A list of professional affiliations and certifications obtained; and
* The dates and locations of prior appointments as OPMO or PA.
The written recommendation, provided by the nominee’s current supervisor, should address, as a
minimum, the nominee’s experience, business acumen, and judgment.
4.5 Selection
The selecting supervisor:
* Reviews and evaluates the personal qualifications statement and the supervisor’s
recommendation.
* Prepares a written Recommendation for Appointment (see Attachment 4-A for a
suggested format) documenting the need for the appointment and the evaluation of the
qualifications of the nominee.
The Recommendation for Appointment is signed by the selecting supervisor and approved by the
HCA or the designee.
4.6 Appointment
The HCA or designee signs a letter or certificate of appointment. Suggested formats for DOE
and NNSA certificates of appointment for the OPMO and PA positions are provided as
Attachments 4B through 4E of this chapter. The letter or certificate should state that the
authority of the appointee is subject to limitations that are:
* Contained in the FMR, FPMR, DEAR, other Federal regulations and laws, and
Departmental guidance, as appropriate; and
* Consistent with the authority of the HCA.
4.7 Restricted Appointment
If the nominee lacks adequate experience, training, or education for the appointment, the HCA or
designee may give the nominee a restricted appointment when:
* No other qualified individual is available for appointment;
* It is necessary to meet mission requirements; and
* The HCA or the designee prepares a written determination specifying the limitations or
controls to be instituted until the nominee completes the necessary training or
demonstrates a clear understanding of the duties and responsibilities of the position.
4.8 Termination of Appointment
An appointment is terminated when the need for the appointment no longer exists. It is also
terminated when the appointee:
* Fails to meet required qualifications that resulted in a restricted appointment;
* Is assigned to another position; or
* Transfers, retires, or terminates employment with the organization.
The HCA or designee terminates the appointment by letter. As part of the termination process,
the letter or certificate of appointment is destroyed or defaced.
A termination of appointment that may adversely affect an individual’s job classification is
coordinated with the personnel office.
4.9 Reappointment
When a previously appointed OPMO or PA transfers to another DOE organization and the
gaining organization determines that there is need to appoint the individual, the gaining
organization:
* Obtains a copy of the documentation that supported the prior appointment from the losing
organization;
* Reviews the documentation and determines whether or not the individual is qualified for
the current position; and
* Prepares a letter or certificate of appointment.
CHAPTER 5
CAREER DEVELOPMENT AND TRAINING
[Reference: DOE O 361.1, Acquisition Career Development Program]
5.1 Overview
This chapter addresses career development and training for the PA and OPMO career paths.
5.2 Guiding Principles
Training gives employees the ability to interpret policies and procedures and make decisions
without strict management oversight and controls.
Trained personal property management professionals improve the effectiveness and efficiency
of the Department's personal property management activities.
5.3 Background
DOE O 361.1A, Acquisition Career Development Program:
* Identifies personal property management as an acquisition workforce related occupation.
* Establishes the Property Management Career Development Program to be adopted at the
election of the HCA.
5.4 Roles
The DOE Property Executive:
* Implements the DOE Personal Property Management Career Development Program.
* Serves as the DOE Personal Property Management Career Manager.
* Designs the contents of the recommended core curriculum and administers the program.
* Provides career development guidance.
HCAs:
* Identify and fund training needs.
* Create individual development plans consistent with site and program mission strategic
needs.
* Establish additional training qualifications, when warranted, to meet local needs.
* Determine the equivalency of alternate training courses and prior on-the-job training for
the training requirements set forth in Chapter II to DOE O 361.1A. Equivalency
determinations are made in writing.
Personal property management professionals are expected to:
* Incorporate required training in their Individual Development Plans.
* Pursue training and growth opportunities offered to them.
* Request increasingly difficult and challenging assignments.
* Enter a mentoring relationship.
* Become involved with professional societies.
* Seek education and training outside the program curriculum.
* Pursue professional certification from recognized management associations
5.5 Personal Property Management Career Development Program
The DOE Personal Property Management Career Development Program is part of the
Acquisition Career Development Program established by DOE O 361.1A. Chapter II of the
Order sets forth the Property Management Program Module. The module provides supplemental
information and guidelines for use by DOE personal property management personnel to plan
their career development.
SECTION II
PROGRAMS, PRINCIPLES,
STANDARDS AND PRACTICES
CHAPTER 6
PERSONAL PROPERTY MANAGEMENT PROGRAMS
[Reference: DOE O 580.1, Department of Energy Personal Property Management Program]
This chapter addresses the establishment, maintenance, self-assessment, and appraisal of Federal
and contractor programs for the management of personal property.
6.1 Guiding Principles
Personal property management systems should provide for the effective, life-cycle management
of DOE-owned personal property.
Contractors are responsible and accountable for all DOE-owned personal property acquired by or
provided to them, including property that they furnish to their subcontractors.
6.2 Federal Program
Each DOE organization is required to establish a personal property management program that is
consistent with the requirements of Federal statutes and the FAR, FMR, FPMR and the 580
series of DOE Directives, as applicable.
The personal property management program should provide for the effective life cycle
management of all personal property in the possession and control of the DOE organization.
6.3 Contractor Program
General
In order to implement the DOE personal property management program requirements outlined in
DOE O 580.1, contractors should establish and maintain personal property management systems
that are DOE program and site-specific.
The systems should also provide for the management of subcontractor-held personal property.
Guidance on the oversight of subcontractors having DOE personal property is provided in
Chapter 10 of this Guide.
Contractor personal property management systems should be consistent with applicable contract
terms and conditions; statutes, regulations, policies and requirements; and the directions of the
contracting officer.
Contractors should maintain their personal property management systems in writing. A system
is not considered acceptable until it is reviewed and approved in writing by the DOE contracting
office. In addition, the DOE contracting office approves in writing all significant revisions to an
already approved system.
Personal Property Holdings Baseline
When a new contractor takes over the management and operation of a DOE facility, the
contractor establishes a personal property holdings baseline. In establishing the baseline, the
contractor may either:
* Accept the previous contractor's personal property records as the baseline, or
* Perform a wall-to-wall physical inventory of all personal property at the facility.
If the new contractor elects to complete a wall-to-wall physical inventory, it should be performed
within the time period specified by the contracting officer or in the contract, but no later than one
year after the effective date of the contract. If the physical inventory is not accomplished within
the allotted time frame, the previous contractor's records will then become the holdings baseline.
If the new contractor determines that a physical inventory for a specific category of property
was not accomplished within the time period specified in DOE O 580.1, the contractor may
either:
* Perform the required physical inventories within 120 days of the effective date of the
contract, or
* Accept the existing property records as the baseline for that category of property.
Initial System Review
A PA should perform an initial review of a contractor personal property management system
within one year after the effective date of the contract, unless the contract is an extension,
renewal or follow-on contract. In that case, the established appraisal schedule is followed.
The purpose of the initial review is to:
* Determine whether the contractor's system provides adequate life-cycle management of
personal property purchased or provided under the contract, including personal property
furnished to subcontractors.
* Provide reasonable assurance that personal property will be safeguarded against waste,
loss, unauthorized use, or misappropriation.
If the PA Advises the OPMO in writing, and the OPMO, in turn, obtains the approval of the
Property Executive, the “within one year” initial review requirement may be extended when:
* The contract was awarded to a new contractor and the award was based in part on the
new contractor's proposal to overhaul the existing personal property management
system.
* Other circumstance that precludes completion of the initial review within one year of the
effective date of the contract.
Annual Self-Assessment
Contractors perform an annual self-assessment of their personal property management systems to
determine if their systems meet the requirements of the DOE personal property management
program and the performance expectations specified in DOE O 580.1. The process for
performing these self-assessments is addressed in Chapter 7 of this Guide.
Contractors report the self-assessment results to their cognizant DOE personal property
management functions, identifying:
* Performance expectations that were not met.
* Functions requiring improvement.
* Weaknesses requiring corrective action.
6.4 Validation and Verification
The cognizant DOE personal property management functions validate and verify contractor self-
assessment results by:
* Maintaining on-going operational awareness of their assigned contractor personal
property management operations.
* Validating the contractor personal property management programs and performance self-
assessment processes.
* Verifying performance assessment results.
* Conducting “for cause” reviews when appropriate.
Appraisal
At a minimum of every three years after the approval of a contractor personal property
management system, the OPMO should make an appraisal of the contractor’s personal property
management operations.
The purpose of the appraisal is to:
* Determine if the contractor is managing personal property in accordance with the
previously approved system and procedures.
* Establish whether the approved system and procedures are efficient and effective.
The appraisal may be based on a comprehensive formal appraisal of the contractor’s entire
operation or a series of formal appraisals of each functional segment of the operation. The
appraisal should take the following into consideration:
* Results of the contractor’s self-assessments.
* Findings from the validation of the contractor’s program and processes.
* Observations from operational awareness and verification activities.
System Status
When the PA determines that all identified system deficiencies have been corrected, the HCA
withdraws the conditional approval or disapproval and approves the system in writing and with
the concurrence of the OPMO.
Documentation
The PA maintains a copy of all system appraisals and approvals.
Review and Approval of System Changes
The PA reviews proposed significant changes to an approved contractor personal property
management system. The PA either approves the changes on an interim basis or disapproves
them, advising the contractor of the decision in writing.
CHAPTER 7
THE BALANCED SCORECARD (BSC) PROGRAM
[References: Government Performance and Results Act of 1993; Procurement Executives
Association Guide to a Balanced Scorecard Performance Measurement Methodology]
7.1 Overview
This chapter addresses:
* The BSC system, its implementation procedures, evaluation standards, and reporting
process; and
* The DOE Federal and Contractor Personal Property BSC Program.
7.2 Guiding Principles
Ensure that business systems adhere to the organization’s mission, vision and strategy
statements.
Follow recognized “Best Business Management” practices.
Comply with applicable statues, regulations, and contract terms and conditions.
7.3 Federal Mandate
Federal organizations face significant challenges to improving the performance of their business
systems. Customer expectations regarding quality, timeliness, and service, all at lower cost, have
increased significantly at a time when budgets and other resources are shrinking.
These challenges require Federal organizations to rethink fundamental approaches to their
business systems and business relationships. In addition, Federal agencies have been directed to
take a look at commercial models for common sense business solutions and business systems
that work better and cost less.
7.4 BSC System
One of the most successful and recognized commercial models is the BSC. The BSC system is a
conceptual framework for performance measurement and management for both Federal and
contractor business systems. It provides consistent techniques that are useful in performing
contractor oversight functions.
The BSC system translates an organization’s mission, vision, and strategy into a set of
performance indicators that are distributed among four perspectives:
* Customer
* Internal Business Processes
* Learning and Growth
* Financial
Through the BSC system, an organization can monitor both its current performance (customer
satisfaction, finances, and business process results) and its efforts to improve processes, motivate
and educate employees, and enhance information systems--its ability to learn and improve.
7.5 Mission, Vision, and Strategy
Organizations that implement the BSC system should be guided by their highest-level purpose
(mission), desired end-state (vision), and methodology (strategy) for achieving that end-state for
its business systems. All objectives and measures should support the following mission, vision,
and strategy statements:
Mission
To provide business services to support the accomplishment of the organization’s programmatic
goals and objectives.
Vision
To deliver on a timely basis the best value product or service to our customers while maintaining
the public's trust and fulfilling public policy objectives.
Strategy
To change and improve the present system's culture, management systems, and line processes
consistent with the principles of Quality Management. By doing so, the Department can
establish and maintain a customer focus, a sense of urgency, continuous and breakthrough
process improvement, and an emphasis on results.
7.6 BSC Perspectives
Customer
This perspective captures the ability of an organization to provide quality goods and services,
effective delivery, and overall customer satisfaction. For purposes of the BSC system, both the
recipient of goods and services (the internal customer) and the sponsor/overseer (external
customer) are regarded as customers of the business processes.
In governmental applications of the BSC system, the principal driver of performance is different
than in a commercial environment; namely, customers and stakeholders take preeminence over
financial results. Recognizing that budgets are limiting factors, government organizations have a
greater stewardship responsibility and focus than do private sector organizations.
Internal Business Processes
This perspective provides data regarding the internal business results against measures that lead
to financial success and satisfied customers. To meet the organizational objectives and customer
expectations, organizations must identify the key business processes at which they must excel.
Key processes are monitored to ensure that outcomes are satisfactory.
Internal business processes are the mechanisms through which performance expectations are
achieved.
Learning and Growth
This perspective captures the ability of an organization’s employees, information systems, and
organizational alignments to manage the business and adapt to change. Processes only succeed
if adequately skilled and motivated employees, supplied with accurate and timely information,
are driving them.
This perspective takes on increased importance in organizations that are undergoing radical
change. In order to meet changing requirements and customer expectations, employees may be
asked to take on new responsibilities, and may require skills, capabilities, technologies, and
organizational designs that were not available before.
Financial
In government organizations, the financial perspective differs from that found in the private
sector. Private sector financial objectives generally represent clear long-range targets for profit-
seeking organizations, operating in a purely commercial environment.
For government organizations, financial considerations have an enabling or a constraining role,
but are rarely the primary objective for business systems. Therefore, success for such
organizations should be measured by how effectively and efficiently these organizations meet the
needs of their constituencies. In government organizations, this perspective captures cost
efficiency, delivering maximum value to the customer for each dollar spent.
7.7 The DOE Personal Property BSC Program
Background
In 1995, DOE reengineered its programs for oversight of Federal and contractor property
management systems. It replaced Headquarters-based, process-oriented review programs with a
single model that relied on local assessment of performance against Departmental expectations.
Through the use of a self-assessment approach developed through a DOE Federal and contractor
partnership, DOE fundamentally redesigned its approach to performance assessment when it
released its “Value-Based Self-Assessment” (VBSA) Model.
Consistent with the DOE long-term strategy and building on the VBSA Model, the DOE
business systems assessments model evolved into the BSC approach to performance
measurement and management.
Expectations
DOE Federal and contractor operations having personal property management responsibilities
are expected to achieve cost effective results while:
* Meeting DOE performance expectations, customer needs, legislative and regulatory
requirements, and contract obligations.
* Applying sound business management practices.
Core and Optional Measures
The core performance objectives and measures established under the BSC are applicable to all
DOE Federal and contractor operations having personal property management responsibilities.
The core measures are exclusive of additional optional measures that DOE expects its field
offices and contractors to develop and implement. DOE field offices and contractors are
responsible for determining the best optional measures to use for their specific situations.
Self-Assessments
Performance measures should be developed, targets established, and measurements taken to
monitor and manage the BSC program. Formal, documented self-assessments are the principal
data gathering sources. Measurements should be used to report performance status to
management and customers, and feedback should be used to drive corrective or improvement
actions as appropriate.
Measurement Baselines and Methodologies
The first step in each performance measurement area is the establishment of a baseline against
which future performance is compared. The objective is to show continuous improvement trends
affecting program performance.
To ensure that the data shows trends and is reliable, the same measurement methods used to
establish the baseline should also be applied in subsequent assessments. It is recognized that the
results may not be directly comparable from one DOE Federal or contractor operation to another.
Business Systems Management Goals
DOE seeks to:
* Translate its vision into clear, measurable outcomes that define successes that will be
recognized and shared throughout DOE and with its contractors.
* Continue to shift from prescriptive, audit and compliance-based oversight to an ongoing,
forward-looking strategic partnership involving Headquarters, the field, and contractors.
* Provide a tool whereby the efficiency and effectiveness of business systems can be
assessed, managed and improved.
* Include measures of quality, cost, speed, customer service, and employee alignment,
motivation, and skills to provide an in-depth, predictive performance management
system.
* Replace current business systems self-assessment models with an improved and more
consistent approach to performance measurement and management.
Web Site
Detailed information regarding the DOE Federal and Contractor Personal Property Balanced
ScoreCard Program can be found on the Headquarters Office of Procurement and Assistance
Management web site. The site provides a link to the Balanced Scorecard (BSC) home page.
CHAPTER 8
PRINCIPLES, STANDARDS, AND PRACTICES
[References: 41 CFR 101-25 thru 27; 41 CFR 102; 48 CFR 970.5204-21; OMB Circular A-119;
DOE Accounting Handbook; Department of Energy Guidelines and Operating Procedures for
Use of the GSA SmartPay Purchase Card by DOE and Contractor Employees; and ASTM
International Practices E 2131-01, E 2132-01, and E 2135-01]
8.1 Overview
This chapter addresses the use of Federal and DOE principles, voluntary consensus standards,
and DOE practices for the control and management of personal property.
8.2 Guiding Principles
Cost-effective Federal personal property management principles should be applied to the control
of DOE personal property.
Unique DOE personal property management standards and practices should be used only to the
extent required to meet unique mission requirements.
DOE should adopt and use applicable voluntary consensus standards and practices whenever
practical and cost effective.
8.3 General
Federal Personal Property Management Principles
Public Law 107-217, Title 40 requires that GSA consult with the Federal agencies and the Office
of Management and Budget to establish and maintain current management principles to be
applied by the Federal agencies, where appropriate, to real and personal property assets that are
subject to this law and under the jurisdiction, custody, and control of the agencies.
The Federal asset management principles related to personal property are listed on the GSA
Office of Government-wide Policy, Personal Property Management Policy Division web page.
Voluntary Consensus Standards
OMB Circular A-119, “Federal Participation in the Development and Use of Voluntary
Consensus Standards and in Conformity Assessment Activities,” dated February 10, 1998,
requires Federal agencies to use voluntary consensus standards, when they exist, in lieu of
Government-unique standards, except where inconsistent with law or otherwise impractical.
The private sector manages and administers voluntary consensus standards. While Federal law
does not mandate the use of these standards, DOE is committed to replacing longstanding,
DOE-unique personal property management standards and practices with voluntary consensus
standards wherever possible.
The voluntary consensus standards cited in this Guide are available from ASTM International for
a small fee. Further information is available on the ASTM International and NPMA web sites at
http://www.astm.org and http://www.npma.org, respectively.
8.4 Acquisition
Excess Property as a Source of Supply
DOE organizations and contractors should use excess personal property (available on site, from
other DOE sites, or from other Federal agencies) to the maximum extent possible to reduce
operating and contract costs.
Abandoned and Forfeited Personal Property
The following abandoned or forfeited personal property may be acquired for medicinal,
scientific, or any other official purposes for which appropriated funds may be expended:
* Drug paraphernalia
* Distilled spirits
* Wine
* Malt beverages
When acquiring this type of property, transfer orders should be forwarded to the Property
Executive for approval and forwarding to GSA.
Use of the Exchange/Sale Authority
The FMR, at 41 CFR 102-39, identifies the types of property that:
* May not be exchanged or sold under the exchange/sale authority.
* May be exchange or sold only if appropriate determinations/certifications are made or
clearances/waivers are obtained.
For property requiring determinations/certifications or clearances/waivers, they will be made or
obtained by an official designated by the HFO, HCA or Director, Office of Administration, as
appropriate.
In addition to the exchange/sale prohibitions listed in the CFR, items in the following FSCGs are
not eligible for exchange/sale processing by DOE organizations and contractors:
20 Ship and marine equipment
22 Railway equipment
GSA SmartPay Purchase Card Purchases
The DOE Guidelines and Operating Procedures for Use of the GSA SmartPay Purchase Card by
DOE and Contractor Employees establishes guidelines for the use of the Government purchase
card by authorized cardholders. This document, which is available on the Headquarters Office of
Procurement and Assistance Management web page, also contains guidance on:
* The responsibilities of the HCA, cardholder, and approving official.
* The reporting, management, and accountability requirements for SmartPay Purchase
Card purchases of personal property.
* Prohibited conduct for purchase cardholders.
GSA Customer Supply Centers (CSC)
DOE organizations and contractors should establish controls to ensure that:
* The use of CSC accounts is limited to the purchase of items for official Government use.
* The CSC customer access codes assigned for their accounts are properly protected.
Office Furniture and Office Machines
DOE organizations and contractors should make the determinations, required by the FPMR,
regarding the utilization of furniture and office machines already owned by DOE to meet
requirements.
Economic Order Quantity Principle
The economic order quantity (EOQ) principle is used to replenish inventories of stock items
having recurring demands. However, when considered more suitable, DOE organizations and
contractors may use other generally accepted economic ordering approaches.
Systems Contracting
Systems contracting, or just-in-time contracting, is a proven cost-effective approach to meeting
procurement needs for supply operations. DOE organizations and contractors should implement
it wherever significant cost savings can result. Impacts on local suppliers and small and
disadvantaged business concerns should be considered in the overall business strategy.
Systems contracting may be used instead of or along with the EOQ principle when:
* Feasible and cost effective, as determined from the results of a feasibility study.
* Adequate controls are established to ensure its proper use.
A feasibility study may be accomplished over a period of time, until all commodity groups have
been considered. Feasibility studies generally consider functional requirements; activity levels
of commodity groups and individual items; and potential impacts on local suppliers as well as
small and disadvantaged businesses. An industrial relations analysis of existing labor relations
and union contracts may also be necessary.
When implementing systems contracting, appropriate property management controls should be
established and periodically evaluated.
DOE organizations and contractors are required to consider the use of GSA supply sources when
economically advantageous to the Government. These sources should also be considered when
conducting the feasibility study.
Prior to approving the implementation of systems contracting, DOE contracting organizations
should evaluate the cost-benefit studies performed by contractors to verify the savings and other
benefits. In instances where a cost benefit study was previously performed, the DOE contracting
organization should evaluate the study and approve the use of systems contracting in writing.
DOE organizations should periodically reevaluate systems contracting operations conducted by
their organization and contractors to ensure that required property management controls are
being followed.
8.5 Borrowing of Personal Property
Government personal property may be borrowed within DOE or from other Federal agencies
when:
* It is practical and economical.
* The property is required for short periods of time (one year or less).
The terms and conditions of the borrowing arrangement should be included in a written
agreement and controls established, as necessary, to ensure the prompt return of the property to
the lender.
8.6 Furnishing of Government Clothing and Individual Equipment
Government-owned clothing and individual equipment may be furnished to employees:
* For protection from physical injury or occupational disease.
* When employees could not reasonably be required to furnish them as a part of the
personal clothing and equipment needed to perform the regular duties of the position to
which they are assigned or for which their services were engaged.
This does not apply to uniforms or uniform allowances under the Federal Employees Uniform
Allowance Act of 1954, as amended.
8.7 Receiving
In order to properly establish and maintain control of personal property that is purchased or
requisitioned, including property purchased with the GSA SmartPay purchase card and delivered
by the vendor, the receiving activity should:
* Maintain a copy of the requisition or purchase document reflecting the items and
quantities ordered.
* Inspect the property upon receipt for obvious damage.
* Reconcile the quantities received against the quantities due, prepare a receiving
document, and provide a copy to the property management activity.
* Tag or mark the property, as appropriate. Note: Hand carried items purchased with the
GSA SmartPay purchase card should be tagged or marked and recorded in the personal
property management system, as appropriate.
* Segregate and safeguard the property while in the receiving area.
* Release the property to the requiring organization as indicated on the requisition or
purchase document.
8.8 Identification and Marking
DOE identification and marking standards and practices are addressed in DOE O 580.1,
Department of Energy Personal Property Management Program. These standards also apply to
personal property purchased with the GSA SmartPay purchase card and hand carried by the
purchaser.
8.9 Records Management
The types of property control records and the basic data elements that are required for
DOE-owned property are addressed in DOE O 580.1, Department of Energy Personal Property
Management Program. Unless the personal property is otherwise exempt from formal property
control records, these requirements apply to items purchased with the GSA SmartPay purchase
card and delivered by the vendor or hand carried by the purchaser. See the DOE Guidelines and
Operating Procedures for Use of the GSA SmartPay Purchase Card by DOE and Contractor
Employees for additional record keeping requirements for SmartPay purchases of personal
property.
While formal property control records are not required for administratively controlled items, the
following types of records, where appropriate, are useful in maintaining visibility over this type
of property:
* Calibration records.
* Maintenance records.
* Tool crib records.
* Equipment pool records.
8.10 Movement
Movement of property should be controlled so that property reaches its destination in a timely
fashion and records can be updated to show changes in location and use status.
8.11 Storage and Warehousing
Storage space and warehousing services for the receipt, storage, identification, location, issue,
and protection of Government property should be established and maintained consistent with
program needs and the following standard practices:
* Stock protection and space utilization should be maximized within established floor load
capacities of indoor storage areas.
* Storage yards for items not requiring covered protection should be locked and fenced.
* Signs should be prominently posted to indicate that the property being stored is U.S.
Government property.
* Access to storage areas should be restricted to authorized personnel only.
* Property should receive:
> Appropriate climate, light and odor control.
> Preservation, when appropriate, to prevent deterioration.
> Protection from theft, vermin infestation, fire, and destruction.
* Property subject to deterioration should be issued on a first-in, first-out basis.
* Hazardous, contaminated, and suspect personal property should not be commingled with
other property. Rather, it should be stored as instructed by environmental, safety, and
health officials.
* Nuclear-related and proliferation-sensitive personal property should be identified with a
certification tag that is signed by an authorized program official and stored separately as
instructed by the cognizant program office.
8.12 Physical Controls and Protection
Control techniques and records that can be used to help minimize waste and abuse of personal
property include:
* Calibration and maintenance schedules.
* Assignment of items to tool cribs and equipment pools.
* Analysis of purchase vs. use information.
* Review of loss and theft reports and disposal records.
Physical controls are used to protect property and prevent loss, theft, or unauthorized removal of
property. Physical controls should include, as appropriate:
* A property pass system.
* Memoranda records.
* Check-out procedures for transferring or terminating employees.
* Perimeter fencing.
* Gate checks.
8.13 Physical Inventories
ASTM International Standard
DOE has adopted the ASTM International voluntary consensus standard for physical inventories.
The standard is called Practice E 2132-01 Standard Practice for Physical Inventory of Durable,
Moveable Property. The following guidance supplements the information contained in the
standard.
Procedures
The OPMO reviews and approves the DOE office and contractor physical inventory procedures
and methods. Procedures that provide for a check-off from a list of property without actual
verification of the physical existence and location of the property do not meet the requirements
of a physical inventory and are not acceptable.
Roles
Personnel other than the property custodians complete the physical inventories unless staffing
constraints or other considerations apply. In those instances, custodians may perform physical
inventories as long as an independent second party verifies the results.
To the extent necessary, independent representatives, such as finance, audit, or property
personnel, may observe physical inventories or conduct follow-on audits to determine if
approved procedures were followed and the results are accurate. Records of these observations
or audits should be retained in the inventory record file.
Reconciliations and Adjustments
Discrepancies between physical inventory results and records should be reconciled, with the
records adjusted to reflect the correct quantities. A responsible official at least one supervisory
level above the supervisor in charge of the warehouse or storage facility, reviews and should
approve the supporting adjustment records.
An acceptable percentage of shrinkage for stores inventories should be determined by the OPMO
or PA on a location-by-location basis, based upon the type and cost of the materials, historical
data, and other site-specific factors. The determination should be in writing and supported by
appropriate documentation.
Items on an inventory adjustment report that are not within reasonable tolerances for particular
items should be thoroughly investigated before the report is approved. Adjustment reports
should be retained on file for inspection and review.
Reports
After reconciling the physical inventory results with the property records and financial accounts,
they should be reported to the OPMO within 30 days of the reconciliation.
8.14 Maintenance
DOE organizations and contractors should ensure that personal property items that are subject to
periodic calibration or maintenance are calibrated or maintained at the intervals specified in the
manufacturer’s standards.
8.15 Materials Consumption
DOE organizations and contractors should ensure the reasonable consumption of materials by
using a process that permits:
* The issue of materials from stores only against valid requirements.
* The return of unneeded materials to stores for future use.
8.16 Utilization
Official Use
DOE personal property should be used only in the performance of official work for the United
States Government, except under the following conditions:
* In emergencies threatening loss of life or property as authorized by law.
* As otherwise authorized by law and approved by the Director, Office of Administration,
HFOs, or a contracting officer for contractor-held property.
Maximum Use
Personal property management practices should assure the best possible use of personal property.
Supplies and equipment should generally be limited to those items needed to carry out DOE
programs efficiently.
Utilization Reviews
DOE organizations and contractors should conduct periodic surveys of the personal property
under their control to—
* assure its maximum use.
* promptly identify items that are excess to their needs.
* make them available for use elsewhere.
When a facility is placed in standby status, an initial review should be made to determine which
items could be made available for use elsewhere within the established start-up criteria for the
facility. Periodic and special reviews, when circumstances warrant, should then be conducted to
determine if there is a need to continue retaining the property.
Equipment pools
Documentation of evaluations conducted on the use and effectiveness of equipment pools should
be maintained by DOE laboratories and made available for review by contractor management,
DOE offices, and audit teams. HFOs and HCAs should require periodic independent reviews of
equipment pool operations.
8.17 Retirement of Property
A retirement work order should be used to report Government property that is worn out, lost,
stolen, destroyed, abandoned, or damaged beyond economical repair. While there is no DOE
retirement work order form, forms or formats in use should provide the following basic
information:
* Property number;
* Item description (nomenclature, part number, manufacturer, etc.);
* Acquisition cost;
* Acquisition date;
* An explanation why the property is being retired;
* Signature blocks for the report initiator and the manager approving the report.
CHAPTER 9
FEDERAL OVERSIGHT OF OFF-SITE CONTRACTORS
[References: 48 CFR Part 42; 48 CFR Part 45; and 48 CFR 945.102-71]
9.1 Overview
This chapter addresses:
* The DOE oversight of Government-owned personal property located at DOE off-site
contractor facilities.
* The use of interagency agreements to request oversight assistance, when appropriate, at
DOE off-site contractor facilities when another Federal agency is the cognizant Federal
agency for that contractor.
9.2 Guiding Principles
The cognizant Federal agency is responsible for performing the review and approval of a
contractor's property control system.
The review and approval of a contractor’s property management system by the cognizant Federal
agency is binding on other Federal agencies based on the terms of interagency agreements
between the cognizant Federal agency and the other agencies involved.
9.3 DOE PA Role
When DOE is the cognizant Federal agency for a DOE off-site contractor, the assigned DOE PA
performs the appropriate type of oversight as described in this chapter.
When another Federal agency is the cognizant Federal agency for a DOE off-site contractor, the
assigned DOE PA should request personal property administration and oversight assistance from
that agency.
9.4 Types of Oversight
Standard Oversight
Standard oversight of an off-site contractor is performed when either of the following conditions
applies:
* The total acquisition value of the DOE personal property at the contractor’s facility
exceeds $500,000.
* The property is sensitive or high risk in nature.
When performing standard oversight, the DOE PA visits the facility where the property is
located to observe and assess:
* The status of the DOE property at the facility.
* The personal property management practices of the off-site contractor.
Limited Oversight
Limited oversight (by written correspondence) of a DOE off-site contractor may be performed
when:
* The total acquisition value of the DOE personal property at the contractor’s facility is
$500,000 or less.
* The property is not sensitive or high risk in nature.
* The off-site contractor:
> Has demonstrated satisfactory property management practices in the past.
> Certifies in writing that the status of the DOE-owned personal property is
satisfactory.
When limited oversight is conducted, periodic visits (no less than every three years) should be
made to the facility where the property is located to:
* Assess informally the personal property management practices of the contractor.
* Verify that the property is being adequately protected and used for the purpose authorized
by the contract.
Balanced Scorecard
The DOE PA may offer an off-site contractor the opportunity to participate in the DOE
Contractor Personal Property Balanced Scorecard Program if the off-site contractor:
* Qualifies for limited oversight.
* Has a good performance record.
If an off-site contractor agrees to participate in the program, the self-assessment, operational
awareness, and reasonable assurance that guidance contained in Chapter 7 of this Guide applies.
Contractors that are under the cognizance of another Federal agency should not be offered the
opportunity to participate in the DOE Contractor Personal Property Balanced Scorecard
Program. Instead, the guidance in paragraph 17.4 applies.
9.5 Interagency Agreements
The FAR requires that Federal agencies avoid performing duplicate audits, reviews, inspections,
and examinations of contractors through the use of interagency agreements.
When the DOE PA determines that DoD or other Federal agencies have contracts with a DOE
off-site contractor, the following guidance applies:
Interagency Agreement with DoD
The administration and oversight of property located in a contractor facility where both DOE and
DoD personal property are located is performed in accordance with the terms and provisions of
an interagency agreement that was negotiated between DOE and the Defense Contract
Management Agency (DCMA). See Attachment 9-A of this chapter for details of the
interagency agreement.
Interagency Agreements with Other Federal Agencies
Interagency agreements are negotiated on an as needed basis. Currently, DOE does not have an
agreement with any other Federal agency covering the administration and oversight of
Government property located in contractor facilities where both DOE and other Federal agency
property are located.
If an interagency agreement becomes necessary, the DOE PA will advise the OPMO. The
OPMO, in turn, will notify the Property Executive who will negotiate an agreement on behalf of
DOE.
MEMORANDUM OF UNDERSTANDING BETWEEN THE DEFENSE CONTRACT
MANAGEMENT AGENCY AND THE U.S. DEPARTMENT OF ENERGY
1. PURPOSE
This Memorandum of Understanding (MOU), between the Defense Contract
Management Agency (DCMA) and the U.S. Department of Energy (DOE), is entered
into in order to establish policy and procedures for the administration and oversight of
DOE property located in contractors’ facilities where Department of Defense (DoD)
property is located.
2. AUTHORITY
a. Federal Acquisition Regulation, 48 CFR Part 42, Contract Administration and
Audit Services
b. Federal Acquisition Regulation, 48 CFR Part 45, Section 45.104, Review and
correction of contractors’ property control systems
c. DoD 4161.2-M, DoD Manual for the Performance of Contract Property
Administration
d. DCMA Directive 1, Contract Management “One Book”
e. Department of Energy Acquisition Regulation, 48 CFR 945.102-71, Maintenance
of records
3. SCOPE
This MOU is entered into with the understanding that:
a. The DCMA property administration and oversight practices will be performed as
prescribed in the editions of the Federal Acquisition Regulation (FAR), DoD
Manual for the Performance of Contract Property Administration, and the Contract
Management “One Book” that are in effect on the effective date of this agreement.
Any significant change to DoD and/or DCMA property administration and
oversight policies, procedures, and practices resulting from the ongoing effort to
rewrite FAR Part 45 may result in a renegotiation or termination of this MOU.
b. DOE property will not be included in the Property Control System Analyses
(PCSAs) performed by DCMA.
c. The delegation of property management and oversight responsibilities to DCMA
will not be required.
d. As required by 48 CFR 1-45.104, DCMA will accept the results of the DOE
personal property management system appraisals and DOE will accept the results
of the DCMA PCSAs and Risk Assessments.
4. PROVISIONS
a. On an annual basis, DOE Property Administrators (PAs) will contact each of their
assigned DOE off-site contractors to determine which, if any, receive property
management oversight from the DCMA.
b. If a DOE off-site contractor receives oversight from DCMA and the preponderance
of the property located at the contractor's facility belongs to DOE, the DOE PA
will:
(1) Conduct property administration and oversight functions in accordance
with current DOE requirements.
(2) Upon written request from the cognizant DCMA field office, provide to
DCMA at no cost the results of the latest personal property management
system appraisal performed by DOE on the contractor.
c. If a DOE off-site contractor receives oversight from DCMA and the preponderance
of the property located at the contractor's facility belongs to DoD, the DCMA PA
will:
(1) Conduct property administration and oversight functions in accordance with
current FAR, DoD, and DCMA requirements.
(2) Upon written request from the cognizant DOE field office, provide to DOE
at no cost the results of the latest PCSA and the most recent system and
function Risk Assessment performed by DCMA on the contractor.
5. EFFECTIVE DATE
This MOU is effective as of May 15, 2001, and will remain in effect for five years from
this date unless it is terminated before that date.
6. EXTENSION
This MOU may be extended by agreement of both parties.
7. TERMINATION
Either party may terminate this MOU, provided that the other party receives 60 days
written advance notice.
EDWARD M. HARRINGTON RICHARD H. HOPF
Brigadier General, USA Acting Director, Management and
Director, DCMA Administration
Department of Energy
CHAPTER 10
CONTRACTOR OVERSIGHT OF SUBCONTRACTORS
[Reference: None]
10.1 Overview
This chapter addresses the responsibilities of:
* DOE PAs for ensuring that subcontracts and purchase orders flow down applicable
property management requirements to subcontractors.
* DOE contractors for the oversight of their subcontractors having DOE-owned personal
property.
10.2 Guiding Principle
Contractors are responsible and accountable for Government-owned personal property acquired
by or furnished to their subcontractors for the performance of subcontracts.
10.3 General
Contractors should include provisions in their subcontracts to assure that their subcontractors
establish and maintain systems for the life-cycle management of the DOE-owned personal
property furnished to them under the subcontracts.
Contractors should also include provisions in their personal property management systems that
provide for the oversight of subcontractor personal property management practices.
10.4 DOE PA Role
The cognizant DOE PAs:
* Review the subcontracts and purchase orders of their assigned prime contractors to
ensure that:
> DOE personal property that is furnished to or acquired by subcontractors is
adequately described.
> Applicable prime contract requirements (e.g., compliance with FMR, FPMR, and
DOE Order provisions) are flowed down.
* Concur in DOE contractor decisions regarding who will maintain the official property
control records for subcontractor held property (see paragraph 10.5).
Ensure that DOE contractors conduct adequate oversight of their subcontractors.
10.5 Subcontractor Personal Property Management Systems and Practices
DOE contractors should review the written personal property management systems and practices
of their subcontractors to ensure that they are adequate to control and protect DOE personal
property.
A written personal property management system may not be necessary if subcontractors have
DOE-owned personal property in their possession that:
* Has a total acquisition value of $500,000 or less.
* The property is not sensitive or high risk.
When a written personal property management system is not necessary, DOE contractors should
obtain a written statement from their subcontractors explaining:
* The subcontractors’ normal personal property management practices.
* The additional steps the subcontractors will take to physically protect and control DOE-
owned personal property if their normal practices do not meet DOE expectations.
10.6 Official Property Control Records
In government contracting, it is standard practice for prime contractors to rely on subcontractor
property control records when their subcontractors have an approved Government property
management system.
When a subcontractor has an approved Government property management system, a DOE
contractor may still elect to maintain the official property control records and rely upon the
subcontractor records as secondary records.
Any decision by a DOE contractor to maintain the official property control records should be:
* A subcontractor-by-subcontractor decision.
* Based upon the established personal property procedures, practices, and past performance
of the subcontractor.
* Concurred with by the cognizant DOE PA.
10.7 Oversight
The written personal property management systems of DOE contractors should include
procedures for the performing of formal and informal oversight of their subcontractors that have
DOE personal property.
The procedures should address oversight schedules, methods, and documentation. The extent of
the oversight (including the scope, frequency and techniques) that is conducted by DOE
contractors should be based upon the following considerations:
* The type, quantity, acquisition value, and high-risk designation of DOE-owned property
in the possession of the subcontractors.
* The types of subcontract and the risk of loss provisions.
* The established policies, procedures, and past performance of the subcontractors.
Formal Oversight
Formal oversight, consisting of on-site surveillance visits by contractor personnel who are
knowledgeable of Government property control requirements, should be performed for
subcontractors having DOE-owned personal property that:
* Has a total acquisition value of over $500,000 or
* That is sensitive or high risk in nature regardless of its acquisition cost.
Informal Oversight
Informal oversight (by written correspondence) of a subcontractor having DOE-owned personal
property may be performed when:
* The total acquisition value of the property is $500,000 or less.
* The property is not sensitive or high risk in nature.
* The subcontractor has demonstrated satisfactory property management practices in the
past.
* The subcontractor certifies in writing that the status of the DOE-owned personal property
is satisfactory.
Informal oversight of subcontractors should be supported by periodic on-site verifications, which
may be conducted by any contractor personnel who routinely visit subcontractor facilities, that
the property is being adequately protected and used for the purpose authorized by the
subcontract.
CHAPTER 11
LOANS OF PERSONAL PROPERTY
[Reference: None.]
11.1 Overview
This chapter addresses the issuance and management of domestic and foreign loans of DOE
personal property.
11.2 Purpose
DOE personal property is loaned for use in research, studies, and other efforts that result in
benefits to both the U.S. Government and the borrower. Loans of DOE personal property are
designed to ensure continued research, development, and training activities.
11.3 Exceptions to the DOE Loan Policy
Upon appropriate Departmental notification of emergency conditions, field offices may loan
property to local agencies in support of military operations or in consideration of health, safety
or security requirements.
11.4 Applicability
This guidance applies to all DOE Federal and contractor personnel who loan DOE personal
property to other DOE offices and contractors, Federal agencies, and other organizations for
official purposes.
11.5 General
DOE personal property may be loaned in support of research activities as outlined in
Chapter 4-Research, Section 31 of the Atomic Energy Act of 1954, as amended, and in Sections
103 and 107 of the Energy Reorganization Act of 1974 provided that the DOE mission is not
affected. In no case is property retained or procured to fulfill loan requests.
Idle property may be loaned to other DOE offices and contractors, Government agencies, or
organizations that have a valid Federal contract, grant, treaty, international or collateral
agreement, or other documentation substantiating that the loaned property will be used only for
official purposes. Only the property custodian, Loan Agreement Coordinator, or other
authorized person may initiate a loan of idle property.
Preloan Considerations and Determinations
Before entering into a loan arrangement, the loan initiator determines and considers whether or
not:
* The DOE mission will be affected.
* Proper inventory control procedures are used.
* Funds are available to reimburse DOE in the event of loss or needed repairs.
* The borrower has exhausted all other supply sources prior to loan initiation.
The initiator indicates whether or not the property was fabricated at the DOE facility or
purchased custom-fabricated. If applicable or required, a risk assessment determination is made
that considers any additional terms or requirements.
Required Approvals
Prior to the removal of any property from a DOE facility for loan purposes, the initiator obtains
the following required site office approvals:
* The hazard control office approval if hazardous characteristics are inherent in the
property.
* The Patent Office approval if there are any patentable aspects inherent in the property
(except for commercially available property).
* High risk review certification and export control office approval if the property has a
high risk potential.
DOE reviews and approves or disapproves loan packages within 21 calendar days after
submission.
Title to loaned property remains with the U.S. Government and accountability rests with DOE
contractors and subcontractors, as appropriate.
Loaned property is tracked in the lending organization’s property control system and included
in all site inventories.
11.6 Documentation
All domestic and foreign loans are documented on DOE F 4420.2, Personal Property Loan
Agreement.
11.7 Domestic Loans
The OPMO or authorized designee approves domestic loans for one loan period. Domestic
loan renewals may be requested in three-year increments; however, the manager of the
initiator’s organization reviews and the OPMO or authorized designee concurs with all
renewals.
Initiating a Loan
When initiating a domestic loan:
* The initiator completes DOE F 4420.2 and obtains the required signatures.
* The initiator or Loan Agreement Coordinator completes all supporting documentation,
obtains all necessary concurrences, and ensures that the loan is entered in the site
property control system.
Adding to an Existing Loan
When adding to an existing domestic loan, the initiator completes a Loan Add-On Request,
which is a memo or shortened version of the original loan request form.
The Contractor Property Manager or OPMO approves additions to existing domestic loans.
Extending a Loan
When a loan extension is necessary, the initiator of the original loan requests a renewal, in
writing, prior to the end of the loan period.
If a loan renewal has not been previously requested, the Loan Agreement Coordinator
determines in writing, four to six weeks prior to the end of the initial or renewal period, whether
or not:
* The property should be recalled.
* The loan should be extended.
* The property should be offered for transfer, reported excess, or abandoned.
* The loan should be closed because the property has been reutilized.
The contractor may approve extensions of existing loans for one loan period. Further renewals
are approved by the OPMO or authorized designee.
Closing a Loan
The lending organization retains the right to cancel loans and to recall loaned property within
30 calendar days of written notice to the borrower.
The borrower may terminate the loan at any time by returning the property to the lender in
accordance with the terms of the agreement. The loan can only be closed after the Loan
Agreement Coordinator accounts for all the items listed on the DOE F 4420.2.
11.8 Foreign Loans
The site DOE Property Manager or authorized designee and the OPMO review and approve or
disapprove foreign loan packages within 10 calendar days of submission. The cognizant
Headquarters offices concur, approve, or disapprove the packages within 21 calendar days after
receipt. The loan period for foreign loans that are authorized under a treaty or international
agreement may extend to the end of the treaty or agreement.
Hand-carried property that remains in the custody of DOE or contractor personnel does not
require a loan agreement unless the property is left unaccompanied at the foreign destination for
more than 90 calendar days.
For all foreign loans, the loan package:
* Is submitted through the DOE site manager.
* Includes a copy of any existing country-to-country or collaborative agreement pertinent
to the loan request; and
* Includes the name of the cognizant Headquarters program officer or person that supports
the effort that the loan benefits.
Initiating a Loan
The initiator completes DOE F 4420.2 and forwards it to the DOE site property office for
review.
The form is accompanied by a copy of any country-to-country or collaborative agreement
related to the loan request and a document from the initiator that:
* Specifies the purpose and duration (not to exceed five years) of the loan.
* Includes the name and telephone number of the cognizant Headquarters program officer
or person that supports the effort that the loan benefits;
* Provides the name of the Headquarters program office contact person that wants the
property to be loaned;
* States if a license is required to export the property. If one is required, a copy of the
license accompanies DOE F 4420.2; and
* Indicates that high risk, hazardous, and export reviews have been completed with
signature of the High Risk/Export Control Reviewer.
The DOE site property office forwards the completed DOE F 4420.2 through the OPMO to the
appropriate Headquarters office for concurrence or approval:
* If approved, the Headquarters office returns the completed DOE F 4420.2 to the
requesting office for action.
* If not approved, DOE F 4420.2 may be resubmitted, with further justification, for
reconsideration.
Adding to an Existing Loan
To add property to an existing loan, the initiator of the original loan completes a new DOE
F 4420.2. The OPMO or authorized designee reviews, concurs in, and approves additions to
existing loans.
Extending a Loan
When a loan extension is necessary, the initiator of the original loan requests a renewal, in
writing, prior to the end of the loan period.
If a loan renewal has not been previously requested, the Loan Agreement Coordinator determines
in writing, four to six weeks prior to the end of the initial or renewal period, whether or not:
* The property should be recalled.
* The loan should be extended.
* The property should be transferred, reported excess, or abandoned.
* The loan should be closed because the property has been returned.
Renewals of foreign loans are approved by the manager of the initiator’s organization and the
OPMO or authorized designee.
Closing a Loan
The lending organization retains the right to cancel loans or to recall loaned property within
30 calendar days of written notice to the borrower.
The borrower may terminate a loan at any time by returning the property to the lender in
accordance with terms of the agreement. The loan can only be closed after the Loan Agreement
Coordinator accounts for all the items listed on the DOE F 4420.2.
Transfer of Title
The program office should prepare the transfer of title request. The request should identify the
authority for the transfer, the underlying authorizing statute for the program and/or appropriation,
the legislative history, and the budget submission that relates to the program.
The transfer of title request should be endorsed by the OPMO and forwarded to the Property
Executive who will submit the request to the Headquarters General Counsel for General Law for
review.
Abandonment or Destruction
Property may be abandoned or destroyed only after a written finding has been made by the
OPMO that either:
* The property has no commercial value, or
* The estimated cost of its continued care would exceed the estimated proceeds from its
sale.
The abandonment or destruction may be completed only after the finding is approved by the
Director, Office of International Science and Technology Cooperation and coordinated with the
U.S. Department of State.
CHAPTER 12
LOSS, DAMAGE, OR DESTRUCTION OF PERSONAL PROPERTY
[References: 48CFR 1-45.103, 45.104, 45.503, 45.504, and 45.508-2]
12.1 Overview
This chapter addresses the process for reporting, investigating, and documenting instances of
loss, damage, destruction, or excessive consumption of personal property.
12.2 Guiding Principle
All instances of loss, damage, destruction, or excessive consumption of personal property should
be investigated to determine:
* The causes.
* The appropriate corrective action required to prevent recurrences.
12.3 ASTM International Standard
DOE has adopted the ASTM International voluntary consensus standard for assessing loss,
damage, or destruction of personal property. The standard is called Practice E2131-01 Standard
Practice for Assessing Loss, Damage, or Destruction of Property. The guidance in this chapter
supplements the information contained in the standard.
12.4 General
DOE organizations, contractors, and subcontractors should report, investigate, and document all
instances of loss, damage, destruction, or excessive consumption of personal property.
12.5 Initial Report
As soon as any loss, damage, or destruction of personal property (including subcontractor held
property) in their possession or control becomes known, DOE organizations and contractors
should report them to the OPMO or PA, as appropriate, and to security or law enforcement
offices when appropriate.
Physical inventory shortages should be reported to the OPMO or PA, as appropriate, within
90 days of completing the physical inventories.
12.6 Investigation
All incidents are investigated and documented to determine:
* The cause or origin.
* The action(s) that should be taken to prevent:
> Further loss, damage, or destruction of personal property.
> Repetition of similar incidents.
12.7 Documentation
After the investigation is completed, a written report should be submitted to the appropriate
DOE, contractor, and law enforcement organizations, containing all known information
regarding the circumstances surrounding the loss, damage, destruction or excessive consumption
to include:
* The DOE organization or contractor's name and contract number, as appropriate.
* A description of the property.
* All known facts, including the date, time (if pertinent), and cause or origin.
* Actions taken to prevent further loss, damage, destruction, or unreasonable consumption,
and to prevent repetition of similar incidents.
* Cost of the property and cost of repairs in instances of damage (in the event the actual
cost is not known, use a reasonable estimate).
12.8 Liability Determination
As appropriate, the HFO or contracting officer reviews the report, determines responsibility and
financial liability for repair or replacement of the personal property, and provides a copy of the
determination to the OPMO or PA and the contractor.
12.9 Follow-up Action
The OPMO or PA ensures that the corrective actions taken by the DOE organization or
contractor are satisfactory and address system weaknesses. Trend data should be maintained and
analyzed periodically to determine if additional corrective actions are necessary.
12.10 Retirement Work Order
A retirement work order should be used to retire personal property that is lost, damaged beyond
economical repair, or destroyed from the official property control records. See Chapter 8.17 for
guidance on retirement work orders.
12.11 Recovery of Costs
Costs associated with instances of loss, damage or destruction of personal property or for
physical inventory shortages may be assessed against an individual or a contractor within the
terms of the contract. See Chapter 17.17 for further guidance on the recovery of costs for
damaged motor vehicles.
12.12 Credit for Found Items
Credit should only be applied if found items that were previously reported as lost are uniquely
identifiable. General physical inventory write-ons should not to be used as a credit.
12.13 Unsatisfactory Property Systems
When the calculated overall or instantaneous loss, damage, or destruction ratios exceed the
acceptable high-risk and non high-risk loss, damage, or destruction ratios established in the
ASTM standard, the PA should evaluate the affected segment(s) of a contractor’s personal
property management system to determine if they protect DOE interests in a satisfactory manner.
If a segment of a contractor's personal property management system is determined to be
unsatisfactory, the PA should increase the surveillance of that segment of the system to prevent
any loss, damage, destruction or unreasonable consumption of personal property.
Any loss, damage, destruction or unreasonable consumption that occurs during a period when a
contractor's personal property management system is not approved should be investigated before
approval or reinstatement of approval is considered.
CHAPTER 13
ACTIVITY ADDRESS CODES
[References: FAR Subpart 51.1, DEAR Subpart 951.1, FPMR Subpart 101-26.2]
13.1 Overview
This chapter addresses the processing of activity address code (AAC) related transactions.
13.2 Guiding Principle
The use of Federal supply sources should be maximized when they save time and money.
13.3 General
In order to use Government supply sources, including the Energy Assets Disposal System
(EADS), DOE Federal and contractor operations must have an AAC. The AAC is a required
data element on:
* Federal Standard Requisitioning and Issue Procedures (FEDSTRIP) requisitions sent to
GSA and the Veterans Administration.
* Military Standard Requisitioning and Issue Procedures (MILSTRIP) requisitions sent to
the DoD.
* EADS reports and transactions.
13.4 General
GSA Headquarters issues and controls AACs assigned to DOE Federal and contractor
operations. Through this process, GSA maintains:
* Data on designated DOE lead field organizations, points of contact (POC’s), and sample
signatures.
* An AAC database. Data for DOE offices and DOE contractors is maintained under Code
89. GSA also periodically provides AAC listings generated from its database to DOE
field offices for validation.
The Headquarters Office of Resource Management:
* Serves as the Department’s focal point on policy matters related to the issuance and
control of AACs.
* Posts the names and telephone numbers for the AAC POCs on the Headquarters Office of
Procurement and Assistance Management web page.
DOE field organizations designated as lead offices:
* Process routine AAC related transactions for their own and other DOE field offices
within a specified group (see Attachment 13-A of this chapter for lead office and group
designations).
* Provide the names, telephone numbers, and sample signatures of new POCs to GSA and
advise the Headquarters Office of Resource Management of all POC changes.
Subordinate DOE field organizations should verify the need, purpose, and validity of their
transactions prior to forwarding them to their lead office for processing.
13.5 Contractor Eligibility
DOE contractors are eligible to receive an AAC when:
* Performing under a cost-reimbursement contract.
* Authorized to use Federal supply sources under a formal letter of authorization (LOA)
signed by the DOE contracting officer.
> When requesting a new AAC, an original LOA is provided to GSA, identifying its
expiration date and the contract number.
> When extending a contractors authority to requisition from Federal supply sources, a
new LOA is furnished
to GSA prior to the expiration of the current LOA. Otherwise, GSA will delete the AAC
number.
13.6 Processing AAC Related Transactions
Requesting a New AAC
When requesting a new AAC, the three address types that follow must be provided to GSA. If
appropriate, one address may be used for all three types.
* Type 1 - Mail/parcel post (ordering office) address.
* Type 2 - Freight (shipping) address. Must be a freight deliverable address, not a post
office box.
* Type 3 - Billing address.
Changing an Address
An address change affecting an existing AAC should be reported to the lead office POC as soon
as it occurs. A contractor address change does not require the issuance of a new LOA.
Extending an AAC Assignment
GSA issues an AAC expiration notice 90 days before a LOA is due to expire. To extend a
contractor’s authority to use an assigned AAC, a new LOA must be received by GSA prior to the
expiration of the current LOA. Otherwise, GSA will cancel the AAC.
Deleting an AAC
A request to delete an AAC should be sent to GSA whenever:
* An AAC assigned to a DOE organization is no longer needed.
* An AAC assigned to a DOE contractor is no longer needed and a LOA expiration notice
has not been received from GSA. Note: If GSA has issued a LOA expiration notice, no
action is required. GSA automatically cancels AACs that have not been extended by the
LOA expiration date.
LEAD OFFICE ASSIGNMENTS
AND
SUBORDINATE OFFICE DESIGNATIONS
Bonneville Power Administration
Manager, Contracts and Property
P.O. Box 3621
Portland, OR 97208-3621
Chicago Operations Office
Director, Information Management and
Support Division
9800 South Cass Avenue
Argonne, IL 60439-4899
Chicago Operations Office
Ohio Field Office
Headquarters
Director, Office of Management Support
950 L’Enfant Plaza
Washington, DC 20585
Headquarters Procurement Operations
Office of Administration
Federal Energy Regulatory Commission
Conservation and Renewable Energy
Oak Ridge Operations Office
Director, Procurement and Contracts
Division
P.O. Box 2001
Oak Ridge, TN 37831
Oak Ridge Field Office
Strategic Petroleum Reserve Project
Office
CEBAF Project Office
Savannah River Operations Office
Director, Contracts Division
P.O. Box A
Aiken, SC 29802
Savannah River Operations Office
Southeastern Power Administration
Morgantown Energy Technology Center
Pittsburgh Energy Technology Center
Western Area Power Administration
Director, Procurement and Support Services
Division
P.O. Box 281213
Lakewood, CO 80228-8213
Western Area Power Administration
Alaska Power Administration
Southwestern Power Administration
CHAPTER 14
[Reserved]
SECTION III
ASSET MANAGEMENT
CHAPTER 15
HIGH RISK PERSONAL PROPERTY
[Reference: Requirements refer to 41 CFR 109; FAR 45; DEAR 945; DEAR 970.5204-21(e);
41 CFR 101, Subchapter H; 10 CFR 600.130; 10 CFR 600.232; and 22 CFR 121]
15.1 Overview
This chapter addresses the life cycle management and control of DOE personal property
categorized as high risk.
15.2 Guiding Principles
High risk personal property should be managed and controlled in an efficient manner throughout
its life cycle.
High risk personal property should be managed so as to protect the public and DOE personal
safety and to advance the national security and the nuclear nonproliferation objectives of the
United States.
The disposition of high risk personal property is subject to special considerations.
15.3 Applicability
This guidance in this chapter applies to all:
* DOE organizations that purchase, manage, or dispose of Government owned personal
property.
* DOE contractors that manage Government facilities, programs, or related services, which
may require, either directly or indirectly, the purchase, management, or disposal of
Government-owned personal property.
* DOE financial assistance recipients that receive DOE-owned personal property under
financial assistance agreements.
High risk requirements apply to contractors and financial assistance recipients to the extent
that they are included in applicable regulations, contract clauses, or financial assistance
agreements.
15.4 Deviations
Requests for approval to deviate from DOE policy regarding the management and control of high
risk personal property policy are made through the cognizant HFO to the Director, Headquarters
Office of Procurement and Assistance Management who will obtain the concurrence of the
Office of the Assistant Deputy Administrator for International Security and Nonproliferation
when appropriate.
15.5 Types of Controls
Items of high risk personal property are categorized by the types of controls they receive:
* Items subject to personal property management controls.
* Items subject to other life cycle management controls.
Personal Property Management Controls
Items in this category have no clear, specific life cycle management controls in laws, regulations,
or DOE orders. Therefore, DOE and contractor personal property management programs should
provide for their identification, accounting, control, and disposal. The items include:
* Information technology.
* Especially designed or prepared property.
* Export controlled property.
* Nuclear weapon components or weapon-like components.
* Proliferation sensitive property.
Other Life Cycle Management Controls
Items in this category have life cycle management controls clearly specified in laws, regulations,
or DOE Orders. They include:
* Export Controlled Information.
* Hazardous Property.
* Radioactive Property.
* Special Nuclear Material.
* Unclassified Controlled Nuclear Information
15.6 Title to High Risk Property
When financial assistance agreements are involved, DOE is concerned only with personal
property to which the Government holds title. Title to:
* Federally-owned personal property furnished under a financial assistance agreement vests
with the Government.
* Personal property acquired under a financial assistance agreement typically vests in the
recipient.
However, DOE may retain title to property acquired under a financial assistance agreement
when:
* The Government anticipates a subsequent need for the property in another program or at
another recipient’s site;
* The property is unique, expensive, and/or otherwise difficult to duplicate in a timely
fashion.
* The property is one of the types of high risk personal property covered in this chapter.
15.7 Roles
HFOs and OPMOs should assure that their DOE organizations, contractors, and financial
assistance recipients develop cost effective personal property management systems, providing
life cycle controls for high risk personal property and covering all of the operational
responsibilities addressed in this chapter.
In addition, OPMOs should:
* Coordinate and conduct the high risk related activities of an organization’s personal
property management program in accordance with existing regulatory requirements.
* Provide guidance to DOE organizations, contractors and financial assistance recipients
regarding the implementation of these high risk guidelines.
* Ensure that DOE contractors and financial assistance recipients:
> Develop high risk practices and procedures consistent with this chapter.
> Require their subcontractors and sub-recipients to adhere to DOE guidance for the
management of high risk personal property.
DOE organizations, contractors, and financial assistance recipients should incorporate
appropriate life cycle controls in their personal property management programs to safeguard
against the inadvertent transfer or disposal of those types of personal property and related
technical information that represent a high risk in terms of nuclear proliferation and/or national
security, public health, safety, and the environment.
15.8 High Risk Controls Determination
The HFO may approve a contractor or financial assistance recipient personal property
management program containing controls other than the life cycle controls addressed in
this chapter. When the HFO takes this course of action, the decision should be justified in
writing and a copy sent to the Director, Headquarters Office of Procurement and
Assistance Management along with a detailed description of the program controls that
were approved.
The HFO decision not to provide life cycle controls should take into account:
* The nature and extent of the high risk personal property typically:
> Acquired by DOE, its contractors, or financial assistance recipients or
> Otherwise brought to a DOE site, designated contractor facility, or financial
assistance Recipient organization.
* The projected stability of the DOE, contractor, or financial assistance recipient
operations.
* The degree of confidence in the property control measures available at disposition.
15.9 Identification, Marking, and Control
High Risk Assessments
Personal property should be assessed and evaluated for characterization as high risk personal
property as early in its life cycle as practical to:
* Ensure appropriate treatment at its disposal.
* Prevent the inadvertent, uncontrolled release of high risk personal property.
Identification, Marking, and Control
Special inventories for the identification of high risk personal property are not required. The
following are recommended methods for ensuring the proper identification, marking and control
of high risk personal property:
* Newly acquired high risk personal property should be identified, marked, and tracked
upon acquisition by DOE organizations, contractors and financial assistance recipients.
* All personal property in use or awaiting use should be reviewed for high risk
identification, marking, and database entry during regularly scheduled personal property
physical inventories, unless access to the property is difficult or impractical because the
property is:
> A component of a larger assembly/operating system or access to the component is
impractical. Such components should be reviewed for high risk personal property
identification prior to final disposition.
> The equipment and material is affixed to or installed in facilities. Due to the
complexity of operating systems or the age of facilities, it may be difficult or
impractical to identify individual components as high risk personal property.
Therefore, it may be more practical to perform a high risk review of the operating
systems or facilities when they are decommissioned and dismantled or when
replacing specific components prior to disposition.
Marking Exemption
High risk personal property that by its nature cannot be marked, such as stores items and metal
stock, is exempt from marking. However, its characterization as high risk personal property
should be documented as part of the personal property management program.
Reporting Lost and Missing Items
If high risk personal property is determined to be lost or missing, the responsible DOE program
office must notify the appropriate security and export control office immediately.
15.10 Disposition
DOE organizations and contractors should ensure that the disposition of these types of high risk
personal property does not adversely affect the national security or nuclear nonproliferation
objectives of the United States.
The disposition (including the demilitarization of items on the United States Munitions List) and
handling of high risk personal property are subject to applicable provisions of the FMR, FPMR,
DOE O 580.1, and the DOE Guidelines on Export Control and Nonproliferation.
High Risk Assessments
The disposition of high risk personal property is subject to special considerations. Therefore, all
proposed disposition actions involving high risk personal property must be evaluated because
they may present significant risks to the public health, safety, the environment, and national
security and nuclear nonproliferation objectives of the United States.
Organizations should identify high risk personal property and control its disposition to eliminate
or mitigate such risks. In no case should personal property be transferred or disposed before an
assessment is made to:
* Determine if it is high risk personal property.
* Ensure that it is handled in accordance with the guidance in this chapter.
To identify the disposition controls needed to ensure compliance with the applicable national
security and nonproliferation controls, all property determined to be high risk should be reviewed
against:
* The Nuclear Suppliers Group Trigger List.
* The Nuclear Suppliers Group Dual-Use List.
* The United States Munitions List published by U.S. Department of State.
DOE organizations, contractors, and financial assistance recipients should not process high risk
personal property into a reutilization/disposal program without performing the high risk reviews
and assessments prescribed by the local high risk personal property management system.
Scrap and Destruction Dispositions
Destruction of excess or surplus high risk information technology, as defined in this Guide, is
mandatory.
Unless alternative disposition options appear to be in the best interest of the Government, the
following components, equipment, and materials should either be sold for scrap, after being
rendered useless for their originally intended purpose, or destroyed:
* Items that are surplus to DOE and identified in the Nuclear Suppliers Group Trigger List.
* Nuclear weapons components or weapon-like components.
Requests for approval of an alternative disposition may be made, through the cognizant Assistant
Secretary, to the Assistant Secretary for Nonproliferation and National Security.
Verification of Destruction
The responsible DOE organization, contractor, or financial assistance recipient should verify any
disposition by destruction of high risk personal property.
Documentation
In accordance with the provisions of approved site or facility personal property management
programs, the following high risk personal property actions should be documented:
* Reviews and assessments.
* Certifications and clearances.
* Destructions verifications.
* End use certification.
Regardless of whether a property transfer is internal or external to DOE, records provided as part
of the transfer should include all applicable documentation, including records concerning the
property’s high risk categorization and end use certification.
15.11 Approvals, Restrictions, and Conditions Applicable to Certain Transactions
Determination of Need
Certain sales, transfers, or other offerings of high risk personal property may require approvals,
special conditions, or specific restrictions as determined necessary by either:
* The property custodian, or
* The cognizant DOE program office responsible for the oversight, control, or management
of that type, class, or condition of high risk personal property.
Approvals
The proposed transfer or sale of surplus high risk information technology to any end-user other
than a Department or Agency of the Federal Government requires the approval of the:
* Director, Office of Resource Management.
* Assistant Secretary for Nonproliferation and National Security.
* Cognizant program office.
Requests for transfer or sale approval will be evaluated for risks to national security, based
on:
* The prior and potential use of the ADPE.
* The essential characteristics of the identified end user(s).
* The evaluated effectiveness of any risk mitigation plan.
* The expected monetary value of the information technology at sale.
HFO action to transfer or sell high risk information technology can only be taken after receipt of
the required approvals and in accordance with any disposition instructions provided with the
approvals.
The transfer or sale should be approved within 21 days. If a request is disapproved, the
information technology should either be destroyed or sold for scrap after being rendered useless
for its originally intended purpose.
Export Restriction Notice
The following Export Restriction Notice, or an approved equivalent notice from the sites or
financial assistance recipient organizations property management system, should be included in
all transfers, sales, or other offerings:
EXPORT RESTRICTION NOTICE
The use, disposition, export and reexport of this property are
subject to all applicable U.S. laws and regulations, including the
Atomic Energy Act of 1954, as amended; the Arms Export Control
Act (22 U.S.C. 2751 et seq.); the Export Administration Act of
1979 (50 U.S.C. Append 2401 et seq.); Assistance to Foreign
Atomic Energy Activities (10 CFR part 810); Export and Import of
Nuclear Equipment and Material (10 CFR part 110); International
Traffic in Arms Regulation (22 CFR parts 120 et. seq.); Export
Administration Regulations (15 CFR part 730 et seq.); Foreign
Assets Control Regulations (31CFR parts 500 et seq.); and the
Espionage Act (18 U.S.C. 793 et seq.) which among other things,
prohibit:
* The making of false statements and concealment of any material information regarding
the use or disposition, export or reexport of the property; and
* Any use or disposition, export or reexport of the property that is not authorized in
accordance with the provisions of this agreement.
15.12 End Use Certificate
An End-Use Certificate, DOE F 580.1 (OMB Control Number 1910-5121) must be completed by
the recipient of high risk personal property and approved by the approving official and, as
necessary, the Assistant Secretary for Nonproliferation and National Security. The completed
certificate becomes part of the transfer records.
CHAPTER 16
PRECIOUS METALS
[Reference: 41 CFR 102-40.115]
16.1 Overview
This chapter addresses the DOE program for the management and recovery of DOE-owned
precious metals and precious metals bearing scrap.
16.2 Guiding Principle
The effective management of DOE-owned precious metals, and the recycling of precious metals
bearing scrap, can reduce research, development, production, and other program related costs.
16.3 DOE Business Center for Precious Metals Sales and Recovery
The DOE Business Center for Precious Metals Sales and Recovery (BCPMSR):
* Recycles, at minimum cost to participants, DOE- owned precious metals (pure meta