RIX Industries Flow Downs

7/6/2021

Description:

SUPPLIER REQUIREMENTS FOR BUYER/GOVERNMENT/CUSTOMER PROPERTY MANAGEMENT (VARIABLE)

Clause:

Supplier Requirements for Buyer/Government/Customer Property Management(Variable)Scope:Buyer Provided Property includes: Buyer, U.S. Government, or Customer-ownedSpecial Tooling, Special Test Equipment, and Equipment as defined by the FederalAcquisition Regulation that is:a. Currently in the possession of Seller; orb. Furnished to Seller under this Contract; orc. Acquired or fabricated by Seller under this Contract; ord. Deliverable line items shipped in-place for use by Seller on this Contract; ore. Items physically removed from Provided Property This clause does not apply to:a. Perishable or Hand Toolsb. Shop Aids / Manufacturing Aids which are consumed during manufacturingprocessc. Buyer furnished material that will be consumed or expended into component partsof a higher assembly, consumed during a test, or which lose their individualidentity through incorporation as a deliverable under this contract.d. Buyer furnished material to be repaired under this Contract.e. Buyer Provided Property furnished for repair as a line item under this Contract.1. General Requirementsa. Buyer Provided Property may not be used in performance of any other contractwithout Buyer’s prior written consent.b. Seller shall establish and implement plans, systems, and procedures, which aresubject to audit by Buyer, to ensure the effective management of BuyerProvided Property in accordance with this clause and FAR 52.245-1. BDS Terms and Conditions GuideClause Number: E000Effective: 07/06/2021 Page: 2 of 10Seller will provide Buyer and U.S. Government (USG) with access to alllocations where property accountable to this contract resides, including subtiers, for the purpose of said audit.c. Seller assumes all risk of loss, destruction or damage, excluding normal wearand tear or losses resulting from force majeure, of Buyer Provided Propertywhile in Seller's possession, custody or control, including any transfer toSeller’s subcontractors.d. If Buyer Provided Property is owned by U.S. Government the terms of theprime contract for which the property is accountable determines liabilityprovisions per FAR 52.245-1 or FAR 52.245-1 Alt 1. Seller may review theCustomer Contract Requirements (CCR) for liability provisions of theaccountable prime contract.e. Seller agrees Buyer may incorporate Clause E017 (Government Property –Risk of Loss) if:i. Seller does not meet the requirements of this clause, orii. Seller’s property management system is reviewed by the United StatesGovernment (USG) and the Government rescinds limitation of liability.f. If Seller’s property management system is reviewed by the USG, Seller shallprovide Buyer a copy of Seller’s US Government system status letterindicating current status of Seller’s property-control system and any supportingdocumentation if applicable. Seller will provide subsequent property systemreview letters as released to Seller. If Seller’s property management system hasnot been reviewed by the USG, Seller shall provide Buyer with propertycontrol procedures for review and approval.g. Seller will perform periodic internal reviews, surveillances, self-assessments oraudits to assess compliance of Seller’s property management system. Sellerwill notify Buyer in writing of any significant findings or issues thatpotentially impact or jeopardize the adequacy of Seller’s property managementsystem.h. Seller will perform periodic reviews, surveillances, assessments or audits toassess compliance of Seller’s subcontractors and Seller’s alternate locations.Seller will notify Buyer in writing of any significant findings or issues.i. In the event Buyer or Seller identify a significant deficiency or Seller’sproperty management system is rated inadequate by the USG, Seller will notifyBDS Terms and Conditions GuideClause Number: E000Effective: 07/06/2021 Page: 3 of 10Buyer and provide periodic communications regarding progress of correctiveactions until the property management system is rated adequate by the USG.j. Seller will have adequate security processes and procedures in place to protectBuyer Provided Property, and will limit access to authorized personnel.k. Seller will include the substance of this clause in all subcontracts at all tiers inwhich Buyer Provided Property is acquired or furnished.l. The Seller's responsibility and liability for Buyer Provided Property extendsfrom the initial acquisition and receipt of property, through stewardship,custody, and use until relieved of responsibility by Buyer in writing.2. Process Outcome RequirementsA. Acquisition1. Upon submission of the invoice, Seller will submit a property list to Buyer’sAuthorized Procurement Representative.2. In the event Buyer Provided Property is not delivered to Seller by the dates statedin this Contract or property is received in a condition not suitable for its intendeduse, Seller will promptly notify Buyer in writing.a. In the event Buyer Provided Property is furnished in an “as-is” condition,any repairs, replacement and/or refurbishment shall be at Seller’s expense.3. Buyer may increase, decrease or substitute the amount of Provided Property, inaccordance with the Changes article of this Contract.B. Receipt1. Seller will perform an inspection for count, condition, verification to shippingdocumentation and damage promptly upon receipt of Provided Property.2. Seller will notify Buyer in writing when property is received in a condition notsuitable for its intended use.3. Seller will promptly notify Buyer’s Authorized Procurement Representative uponreceipt of Buyer Provided Property and provide the information required byparagraph 2.C.1 of this clause.4. Seller will physically mark property as directed by Buyer. BDS Terms and Conditions GuideClause Number: E000Effective: 07/06/2021 Page: 4 of 105. Seller will ensure that items delivered to the Department of Defense (DoD)conform to UII requirements.a. Seller will notify Buyer if it receives Government property which does nothave a UII marking/label and/or a virtual UII annotated on a DD Form1149 Requisition and Invoice/Shipping Document when applicable.C. Records1. Seller will create property records which contain a complete, current, auditablerecord of all transactions within a timely manner upon receipt or fabrication. Theproperty records will contain the following:a. The nomenclature, part or tool number, serial number, Manufacturer,model number, and National Stock Number (if available)b. Buyer’s Property control number (after such number is provided byBuyer)c. Quantity received (or fabricated), issued, and balance-on-handd. Unit acquisition coste. Unique-item identifier or equivalent (if available and necessary forindividual item tracking)f. Unit of measureg. Accountable contract number or equivalent code designation, (e.g.purchase contract number).h. Locationi. Dispositionj. Posting reference and date of transactionk. Date placed in service (if required in accordance with the terms andconditions of the contract)2. Seller will manage, safeguard and control property records, artifacts, anddocumentation in accordance with FAR 4.7 or an industry accepted practice.3. Seller will immediately notify Buyer’s Authorized Procurement Representative inwriting if the documentation associated with the Buyer Provided Property doesnot contain the information in paragraph 2.C.1. The required data elements shallbe provided to the Seller.BDS Terms and Conditions GuideClause Number: E000Effective: 07/06/2021 Page: 5 of 10D. Physical Inventory1. Seller will conduct a physical inventory of Buyer Provided Property, includingproperty in the possession of Seller’s subcontractors and interdivision sites, asdirected by Buyer. Seller will be required to perform inventories on an annual,biennial, or triennial basis, based on the risk rating assessed by Buyer.2. Seller will conduct a physical inventory upon termination or completion of thisContract.3. Seller will provide Buyer’s Authorized Procurement Representative a writtenreport upon their completion of the physical inventory.E. Utilization1. Seller will notify Buyer in writing if replacement and/or capital rehabilitation ofBuyer Provided Property is required.2. Seller will notify Buyer’s Authorized Procurement Representative, in writing, ofprovided property in its possession that is excess to Contract requirements.3. Seller may not cannibalize Buyer Provided Property without written consent fromBuyer’s Authorized Procurement Representative.4. Seller will provide the Buyer purchase contract number(s) as justification forretention on Buyer physical inventory documentation.F. Reports/Data Deliverables1. Seller will submit periodic reports regarding Seller accountable property,according to the schedule in Attachment (1) of this clause.2. Reports, documents, inventories and correspondence regarding Buyer ProvidedProperty will contain the information identified in paragraph 2.C.1.3. Upon Buyer request, Seller will provide property reports in support of a USGassessment or inquiry.BDS Terms and Conditions GuideClause Number: E000Effective: 07/06/2021 Page: 6 of 10G. Relief of Stewardship Responsibility and Liability1. In the event of loss, damage, destruction or theft of Buyer Provided Property,including property at subcontractor and alternate locations, Seller will provide thefollowing information regarding such property to Buyer:a. Date of incidentb. The data elements required under paragraph 2.C.1 of this clause.c. Accountable purchase contract numberd. A statement indicating current or future neede. Estimated repair or replacement costs.f. All known interests in commingled material of which includesGovernment material.g. Cause and corrective action taken or to be taken to prevent recurrence.h. A statement reflecting whether the Seller has insurance to cover theincidenti. Copies of all supporting documentation (as requested by the Buyer)j. Last known locationk. A statement that the property did or did not contain sensitive, exportcontrolled, hazardous, or toxic material, and that the appropriate agenciesand authorities were notified2. Seller will submit any documentation / forms required by Buyer related to theloss, damage, destruction or theft of Buyer property, provide a corrective actionacceptable to Buyer for each incident, and provide assistance to resolve and/orparticipate with investigations required.3. Seller will dispose of Buyer Provided Property as directed by Buyer or the U.S.Government. Seller will notify Buyer’s Authorized Procurement Representativein writing of any such direction by the U.S. Government.H. Shipment of Buyer Provided Property1. Seller will promptly comply with Buyer’s direction to prepare and ship BuyerProvided Property.2. Seller will pack Buyer Provided Property to prevent damage and deterioration andwill comply with Buyer packaging specifications, if any. BDS Terms and Conditions GuideClause Number: E000Effective: 07/06/2021 Page: 7 of 103. Seller will include the following on all shipping documents:a. The nomenclature, part or tool number, serial number, Manufacturer,model number, and National Stock Number (if available)b. Boeing property control numberc. Quantityd. Unit acquisition coste. Unique-item identifier or equivalent (if available and necessary forindividual item tracking)f. Unit of measureg. Accountable contract number or equivalent code designation, (e.g.,purchase contract number).I. Maintenance1. Seller will conduct routine preventative maintenance and repair on BuyerProvided Property.2. Prior to modification of Buyer Provided Property, Seller will obtain writtenconsent from Buyer’s Authorized Procurement Representative.J. Property Closeout1. Upon completion of performance of this Contract, Seller will, perform aninventory of residual property, including subcontractors and alternate locations,and provide a report of such inventory to Buyer reflecting a retentionrecommendation.2. If Seller recommends retention of Buyer Provided Property, Seller will providethe following information to Buyer, in writing:a. Purchase contract number which necessitates retention of said propertyb. Boeing property control number(s).BDS Terms and Conditions GuideClause Number: E000Effective: 07/06/2021 Page: 8 of 103. This Section Applies only if this Contract is issued in support of a NASA PrimeContract1. Financial reporting of Government property in the possession of Seller (and itssub-tier suppliers or interdivisional entities), or for which Seller hasresponsibility, will be performed, recorded, and reported as set forth within theapplicable Seller Data Requirements List (SDRL).a. Seller will complete and provide to Buyer NASA Form 1018 inaccordance with NASA FAR Supplement 1845.7101; Instructions forPreparing NASA Form 1018, 1852.245-73.b. In addition to any inventory requirements contained in this Contract,Seller will comply with NASA FAR Supplement 1852.245-78 PhysicalInventory of Capital Personal Property.4. Buyer Provided Property Authorized for Use in the Performance of thisContractBuyer Provided Property authorized for use in performance of this Contract is identifiedbelow, or may be identified elsewhere in this Contract (e.g. Clause D001), or funded as afabrication/acquisition line item(s) on this Contract.Buyer Provided Property ListingPropertyName/DescriptionTool Part Number Property ID Number(e.g. Property Control #, BoeingAsset ID or Tag #)BDS Terms and Conditions GuideClause Number: E000Effective: 07/06/2021 Page: 9 of 105. Attachment (1)Outcome / BusinessProcess Frequency Documentation RequiredChanges to the status of aGovernment approvedproperty control systemUpon receipt of theGovernment letterGovernment issued letterSeller’s internal assessment/ corrective action plansassociated with Buyer orSeller identified significantdeficiency or the USGdetermines the Seller’sproperty managementsystem as inadequateAs released Report of audit findings andcorresponding correctiveaction planSignificant revision ormodification to the Seller’sproperty control procedurepreviously approved byBoeingAs revised Copy of revised procedureAcquisition/fabrication Upon receipt or uponcompletion offabricationSpecial Tooling:-STL based programs use ToolConfiguration System (TCS)as required by clause E011.-Use form X39470 for allother sitesSpecial Test Equipment andEquipment:-Use form X39470Confirmation of receipt Immediately afterreceiving inspectionSeller to submit Form X39470Receiving / notification ofdiscrepancies or damageupon receiptImmediately afterreceiving inspectionEmail notification or copy ofreceiving documentPhysical inventory results Within the specifiedtimeframe issued bythe BuyerSeller to submit Boeing FormX39217; SubcontractorPhysical Inventory /Utilization ConfirmationLoss, Damage, Destructionor TheftAs soon as the factsare knownSeller to submit reportcontaining data identified inParagraph 2.G.1BDS Terms and Conditions GuideClause Number: E000Effective: 07/06/2021 Page: 10 of 10Outcome / BusinessProcess Frequency Documentation RequiredRequest to Modify or ReWork Buyer ProvidedPropertyPrior to work Written request to the Buyer’sAuthorized ProcurementRepresentativeModification or Re-Work ofBuyer Provided PropertyUpon completion ofworkSTL based programs (SpecialTooling only): Use ToolConfiguration System (TCS)as required by clause E011Use Form X39470 for allother submissionsDeclaration of Excess Immediately uponcompletion of use orengineering changes toaffect the need toutilize the property.Seller to submit FormX39439; Excess PropertyReportProperty disposal (Relief ofStewardship)Upon physicaldisposal by shipment,scrap or sale.Email notification as directedby Boeing