RIX Industries Flow Downs

4/23/2019

Description:

Supplier Requirements for Buyer/Government/Customer Property Management (Variable)

Clause:

Buyer Provided Property is defined as: Buyer, U.S. Government or Customer-ownedSpecial Tooling, Special Test Equipment, Equipment and Material 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/Material This clause does not apply to:a. Perishable or Hand Toolsb. Shop Aids / Manufacturing Aids which are consumed during manufacturingprocessc. Material that has or may be consumed or expended during the performance of acontract, component parts of a higher assembly, or items that lose their individualidentity through incorporation into an end-item as defined in FAR 45.101.1. General Requirementsa. 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. Sellerwill provide Buyer and U.S. Government (USG) with access to all locationswhere property accountable to this contract resides, including sub-tiers, for thepurpose of said audit.b. Seller assumes all risk of loss, destruction or damage of Buyer ProvidedProperty while in Seller's possession, custody or control, including any transferto Seller’s subcontractorsc. 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. Seller may review the Customer ContractRequirements (CCR) for liability provisions of the accountable prime contract.d. 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.e. 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.f. 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.g. 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.h. In the event Buyer or Seller identify a significant deficiency or Seller’sproperty management system is rated inadequate by the USG, Seller willsubmit to Buyer a corrective action plan acceptable to Buyer.i. Seller will have adequate security processes and procedures in place to protectBuyer Provided Property, and will limit access to authorized personnel.j. Seller will include the substance of this clause in all subcontracts at all tiers inwhich Buyer Provided Property is acquired or furnished.k. 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.5. 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.D. 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 ortriennial basis.2. Seller will provide Buyer’s Authorized Procurement Representative a writtenreport upon their completion of the physical inventory.E. Utilization 1. 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.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.G. 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 3.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 notified1. 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.2. 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.3. 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 Closeout 1. 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).3. 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 the performance of this Contract isidentified below, or may be identified elsewhere in this Contract (clause D001 or D501)or funded as a fabrication /acquisition item(s) on this Contract. Buyer Provided Propertymay not be used in support of any other contract unless specifically authorized in writingby Buyer and identified within this clause or equivalent terms and conditions of the saidcontract. PropertyName/DescriptionTool Part Number Property ID Number(e.g. Property Control #, BoeingAsset ID or Tag #) 5. 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 planRevision or modification tothe Seller’s property controlprocedure approved byBoeingAs revised Copy of revised procedureAcquisition/fabrication Upon receipt or uponcompletion offabricationCan be in the form of:- Tool Completion Report- Accountable Property List- Receiving DocumentationConfirmation of receipt Immediately afterreceiving inspection- For St Louis and Huntsvillesites, Change Request in theVendor Inventory Process(VIP)- All other sites emailnotification or copy of Outcome / BusinessProcess Frequency Documentation Requiredreceiving document- Seller’s InvoiceReceiving / notification ofdiscrepancies or damageupon receiptImmediately afterreceiving inspectionEmail notification or copy ofreceiving documentReport of Active Property As requested byBuyerReport in format as directedby the Buyer for purposes ofmeeting customer requestsUse of Buyer ProvidedProperty other than asauthorized by this contractPrior to use Written request to the Buyer’sAuthorized ProcurementRepresentativePhysical inventory results Within the specifiedtimeframe issued bythe BuyerFor St Louis and Huntsvillesites, VIP inventoryconfirmationAll other sites emailnotification with thecompleted inventory formLoss, Damage, Destructionor TheftAs soon as the factsare knownFor St Louis and Huntsvillesites, VIP Change RequestEmail notification all othersitesRequest to Modify or ReWork Buyer ProvidedPropertyPrior to work Written request to the Buyer’sAuthorized ProcurementRepresentativeModification or Re-Work ofBuyer Provided PropertyUpon completion ofworkCan be in the form of:- Tool Completion Report- Accountable Property ListDeclaration of Excess Immediately uponcompletion of use orengineering changesto affect the need toutilize the property.SF1428 form or a VIP excesschange requestProperty disposal (Relief ofStewardship)Upon physicaldisposal by shipment,scrap or sale.For St Louis and Huntsvillesites, VIP Change RequestEmail notification all othersites