Use the following clause in lieu of the clause at 252.245–7002, Reporting Loss of Government Property, in solicitations and contracts that contain the clause at FAR 52.245–1, Government Property.
Effective immediately, for solicitations and contracts that include the clause at FAR 52.245-1, Government Property, DoD contracting officers shall use the text and clause provided in the attachment in lieu of the text at DFARS 245.102(5) and clause at DFARS 252.245-7002, Reporting Loss of Government Property. The clause provided in the attachment requires contractors to report the loss of Government property in the Government-Furnished Property (GFP) Module of the Procurement Integrated Enterprise Environment, in lieu of the Defense Contract Management Agency (DCMA) eTool software application. Losses previously reported in the DMCA eTool will be processed to completion and will not be transferred into the GFP Module.
REPORTING LOSS OF GOVERNMENT PROPERTY (DEVIATION 2020-O0004) (FEB 2020)
(a) Definitions. As used in this clause—
“Government property” is defined in the clause at FAR 52.245-1, Government Property.
“Loss of Government property” means unintended, unforeseen, or accidental loss, damage, or destruction of Government property that reduces the Government’s expected economic benefits of the property. Loss of Government property does not include purposeful destructive testing, obsolescence, normal wear and tear, or manufacturing defects. Loss of Government property includes, but is not limited to—
(1) Items that cannot be found after a reasonable search;
(3) Damage resulting in unexpected harm to property requiring repair to restore the item to usable condition; or
(4) Destruction resulting from incidents that render the item useless for its intended purpose or beyond economical repair.
“Unit acquisition cost” means—
(1) For Government-furnished property, the dollar value assigned by the Government and identified in the contract; and
(2) For Contractor-acquired property, the cost derived from the Contractor’s records that reflect consistently applied, generally acceptable accounting principles.
(b) Reporting loss of Government property.
(1) The Contractor shall use the Property Loss Function in the Government Furnished Property (GFP) Module of the Procurement Integrated Enterprise Environment (PIEE) for reporting loss of Government property. Reporting value shall be at unit acquisition cost. Current PIEE users can access the GFP Module by logging into their account. New users may register for access and obtain training on the PIEE home page https://wawf.eb.mil/piee-landing.
(2) Unless otherwise provided for in this contract, the requirements of paragraph (b)(1) of this clause do not apply to normal and reasonable inventory adjustments, i.e., losses of low-risk consumable material such as common hardware, as agreed to by the Contractor and the Government Property Administrator. Such losses are typically a product of normal process variation. The Contractor shall ensure that its property management system provides adequate management control measures, e.g., statistical process controls, as a means of managing such variation.
(3) The Contractor shall report losses of Government property outside normal process variation, e.g., losses due to—
(ii) Inadequate storage;
(iii) Lack of physical security; or
(iv) “Acts of God.”
(4) This reporting requirement does not change any liability provisions or other reporting requirements that may exist under this contract.
(End of clause)