UCAR PROPERTY MANUAL
Section 3-4: Disposition of PropertyGovernment regulations and UCAR procedures require that when a Fixed Asset is no longer needed for use by UCAR, that asset must be disposed of in a manner which ensures appropriate use in its after-life and provides an auditable trail to prove UCAR has managed its assets correctly. In the case of Government Property (Government Furnished or Contractor Acquired) subject to conditions of the FAR 52.245-1(f)(vii)(A)-(C), , when said property becomes excess to the needs of the specific award through which it was funded or to which it was assigned it must be reported in writing to the Contracting Officer who will issue disposition instructions. In reporting the equipment, UCAR may include a recommendation for final disposition, however, decisions regarding final disposition will be made by the Contracting Officer or her/his designee. Divisions must notify the Property Office of any planned disposal action before it occurs. The Property Office will:
In the context of Section 3-4, a disposal action applies to disposal of the entire asset. When a division needs to dispose of part of an asset, please contact the Property Office for guidance as disposal of part may impact the whole. The most frequently used methods for disposing of Fixed Assets at UCAR are explained below (in alphabetical order): Occasionally, equipment condition or other circumstance necessitate that it be abandoned at a field site. When this occurs, the division will notify the Property Office immediately. Notification should include:
The Property Office will communicate with the appropriate Government and/or UCAR contacts to obtain release from accountability. Once that is received, a disposal record will be created in the FADB and the item will no longer appear on the division's list of active assets.
If an asset is permanently integrated with another asset, the two should thereafter appear as one asset on the UCAR FADB records. Therefore, if this is to be done, the DPA will notify the Property Office prior to integration. The Property Office will verify that, based on funding and agreement terms, this will not create an ownership conflict and then notify the division that they may proceed.* The Property Office will also instruct the division to remove one of the PPE tags and merge the relevant FADB records into one record (corresponding to the remaining PPE tag#) so that all combined data pertinent to the new asset is reflected correctly in the FADB. *If a conflict is identified, the Property Office will work to resolution with the division enabling the integration to proceed. Upon completion of an agreement, the DPA(s) for the applicable division(s) will conduct a physical inventory of all property assigned to the related agreement. The UCAR Property Office will initiate this task by providing a list of the property. In this inventory the DPA will verify database information for the property items acquired, confirming the condition and location of all items, and assist in determining the appropriate disposition actions. For some awards, per the FAR 52.245-1(f)(x) UCAR is responsible for reporting the results of the final physical inventory to the Property. The division must identify property from the expiring agreement to be retained for use either on another current project or authorized future projects and submit a brief written justification for this retention to the UCAR Property Office. The Property Office will work with the agreement contracts officer or property administrator to obtain authorization to retain the property and notify the DPA when such authorization is received. In some cases, the sponsor may request that the equipment be returned to them, or be put through their disposal process. Also, the sponsor may decide to grant title to UCAR without further obligation to the sponsor. When a division is contracted to procure or construct a Fixed Asset strictly for the sponsor's use (not for research conducted by the division), it is referred to as a Deliverable (produced exclusively for delivery to the sponsor). Because the item is a Fixed Asset and is procured by a UCAR division, it will electronically feed into the FADB and remain on the division's list of active assets until documentation of its status as a Deliverable and verification of delivery are provided to the Property Office. The nature of such documentation varies depending upon the agreement language and the method of delivery. These steps should be followed to ensure that a Deliverable is clearly documented and can be removed from the division's list of active assets as soon as delivery occurs.
Once documentation of both issues (deliverable status and confirmation of delivery) has been received in the Property Office, a "disposal" record will be created in the FADB and the asset(s) will no longer appear on the division's list of active Fixed Assets. If there is an actual property tag on the asset, the DPA must remove any UCAR identification (PPE or RED tags) from the equipment upon receiving the authorization to dispose. Note: All associated costs must be posted to the GL prior to disposal. Also referred to as "cannibalizing," this means that the asset is dismantled for parts to be used on other assets and any remaining pieces are sent to a scrap dealer. If the Division plans to dismantle an asset notify the Property Office by e-mail:
The Property Office will notify and, when appropriate, obtain approval from the government property administrator or other agreement contact. Then a disposal record will be created in the FADB to remove the asset from the division's list of active assets. NOTE: This notification must occur prior to the dismantle. If the equipment is GFE (Government Furnished Equipment) you must contact the property office prior to taking any action. The DPA must remove any UCAR identification (PPE or RED tags) from the equipment upon receiving the authorization to dispose. Donations or Title Transfers (hereinafter referred to as Transfers) occur when Fixed Assets (or non-Fixed Assets; see footnote)¹ are no longer useable by UCAR and the division requests they be transferred to a non-profit U.S. educational and/or research institution.² Prior to initiating a donation, the DPA must offer the asset(s) to other divisions/programs within NCAR/UCAR/UCP via an e-mail to "dpaalias@ucar.edu" for 2 business days. The Stevenson-Wydler Technology Innovation Act was designed to facilitate such transfers of equipment to enhance education in the U.S. To initiate a Transfer, the division sends an e-mail to the UCAR Property Administrator which:
The Property Office issues a Transfer request to the appropriate government agency or other contact. Once authorization is provided, the Property Office contacts the property representative at the receiving entity (recipient), requesting that they accept accountability and release UCAR from any further liability related to the equipment transferred. (In the case of U.S. Government Property, the government transfers the asset to UCAR for subsequent transfer by UCAR to the recipient.) When acceptance is received by the Property Office from the recipient, the division is informed and the asset may be released to the recipient. If the asset needs to go to the recipient before the above takes place, the division can issue a loan form as appropriate authorization until the Transfer is complete. ¹Non-Fixed Assets may also be donated and require the same UCAR/recipient communication in order to release UCAR from further accountability and liability. ²Some UCAR equipment (depending on the original funding source and agreement title provisions) may be donated to non-profit entities other than educational and/or research institutions; however, educational and/or research entities have priority over other non-profits. UCAR equipment may not be donated to any political or religious organizations. UCAR equipment may not be donated to for-profit entities or private individuals. Software must be removed from computer equipment before it is donated. UCAR purchases a license to use the software but does not actually own it and is not authorized to transfer the use of the license to another entity. If the equipment is GFE (Government Furnished Equipment) you must contact the property office prior to taking any action. The DPA must remove any UCAR identification (PPE or RED tags) from the equipment upon receiving the authorization to dispose. If an asset is no longer needed by a division it is considered Surplus equipment. Not the same as Excess equipment that goes out on GSA (see below).
If no other division claims the asset then go to procedures for Salvage, Dismantle, etc. If an NSF asset is no longer needed by UCAR it is considered excess equipment. The Property Office will initiate the Excess process:
A Property Office representative will check the Property into the Property cage. Only after the asset has been signed in will it be removed from division accountability. Assets misdelivered (wrong destination or not signed in by a Property Office representative) will remain the responsibility of the division. Therefore, please be sure Logistics Operations knows that the Property cage is the destination. Part of the property storage receiving process is identifying the entire asset based on the form provided. Therefore, if the asset is in multiple parts be sure this is clearly stated on the form so that it can be excessed in its entirety. After receipt, the Property Office will complete and submit Standard Form 120* to the appropriate government agency. Information from that form is made available to other government agencies so that those agencies and/or their contractors can claim the asset if desired. If not claimed by another agency, the information is forwarded to the General Services Administration (GSA) who offers the asset for sale. Interested buyers make an appointment with the Property Office to view the asset and, if they choose to bid and are successful, return to pick it up. When an asset is physically removed from the UCAR site a disposal record is created to remove it from UCAR responsibility. *Excess NSF equipment will be offered to other NSF National Research Centers before submittal of the SF120, according to Clause 14.11.c of the NSF/UCAR Cooperative Agreement. Here is a list of the most commonly used Condition Codes:
If the equipment is GFE (Government Furnished Equipment) you must contact the property office prior to taking any action.
If the division returns an asset to the vendor, the DPA will immediately notify the Property Office. The Property Office will track the credit to ensure that the asset cost is reversed in the FADB. Once the total cost in the FADB record nets 0.00, a disposal record will be created and the item will no longer appear on the division's list of active assets. If applicable, the DPA must remove any UCAR identification (PPE or RED tags) from the equipment upon receiving the authorization to dispose.If an asset can no longer be used by a division, either because it is obsolete or does not work, the division may select to send it to salvage. The salvage process requires the following steps:
If the equipment is GFE (Government Furnished Equipment) you must contact the property office prior to taking any action. The DPA must remove any UCAR identification (PPE or RED tags) from the equipment upon receiving the authorization to dispose. Selling assets is an exception to UCAR's standard procedures; however, it does occur periodically. In such cases, the division and the Property Office will work together to obtain special authorization from the appropriate sponsor if required. This authorization will include direction on how the sales proceeds are to be used. For sales of supplies and materials these procedures will also need to be followed. The UCAR Contracts Office will create the sales agreement, addressing relevant Government and UCAR conditions of sale, including procedures "which provide for competition to the extent practicable and result in the highest possible return," as required by OMB A-110, Subpart C.34(f)(6). When necessary, the UCAR Office of General Counsel will participate to ensure all legal issues have been addressed. Under some circumstances, UCAR may be required to reimburse the Federal awarding agency an amount computed by applying to the sales proceeds the percentage of Federal participation in the cost of the original project or program. In such cases, UCAR shall be permitted to deduct and retain from the Federal share $500 or ten percent of the proceeds, whichever is less, for selling and handling expenses. In most cases, employees are not allowed to purchase assets or non-assets from UCAR unless they are bidding on a public sale. Specific terms within an agreement may also apply. If the equipment is GFE (Government Furnished Equipment) you must contact the property office prior to taking any action. The DPA must remove any UCAR identification (PPE or RED tags) from the equipment upon receiving the authorization to dispose.
After the initial notification, provide the following information according to the schedule indicated. Delays in adhering to this schedule should be communicated immediately along with a proposed specific schedule adjustment. (“As soon as we can” will not be acceptable.)
Depending on the items stolen, UCAR may be required to make further immediate notification to other authorities (i.e., NSF, FBI). Therefore, adherence to this schedule is critical. Steve Sadler’s office will distribute copies of the report and inventory to Betsy Hulsing and the UCAR Insurance Manager.
The government allows UCAR to use government-funded equipment as trade-in for replacement equipment procured under the same agreement (or a follow-on agreement) and some Agencies require that UCAR obtain their prior approval before the trade-in takes place. Therefore, when a division plans a trade-in, notify the Property Office by e-mail well before it takes place so that approval can be obtained, if necessary. Once approval is received or if prior approval is not required, the Property Office will notify the division to proceed. Once the trade-in has taken place, the division will notify the Property Office and a disposal record will be created for that asset, removing it from the division's list of active assets. The DPA must remove any UCAR identification (PPE or RED tags) from the equipment upon receiving the authorization to dispose. The above are many of the disposal scenarios used by UCAR. If an asset needs to be removed from UCAR accountability but the situation is not covered by one of the procedures explained above, please call the Property Office for guidance. A NON-fixed asset is basically an item that is UCAR owned and does not qualify as a fixed asset. It is equipment purchased for less than $5,000 and may or may not be identified as sensitive property. If a NON-asset can no longer be used by a division, either because it is obsolete or does not work, the division should do the following:
Normally when the Property Office requests disposal for an asset we receive the disposition instructions within several weeks or even within a few days. Occasionally disposal requests take longer than normal. Some sponsors have a longer disposition process and it can take several months or more to complete the disposal of the fixed asset. In those instances we will have the division turn over the equipment to the Property Office, at that point we will store the asset in our locked property cage in CG3 during this holding period. The Property Assistant maintains a log of current fixed assets in the cage. The log is updated every time there is a change to the list of assets in the cage. Once the Property Office has the necessary disposition instructions we will then complete the disposal process on behalf of the division.
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Property Homepage
Manual TOC
3--Guidance
4--Contacts
5--DPA Responsibilities
6--Meeting
Notes
7--Responsible Person Duties
8--Sensitive
Property 9--Capitalization Guidelines
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