Part 16. Inventory Control and Property Management
Section 5. United States Government-Owned Equipment
Policy Number: 16.5.3
Issued by: Office of Accounting
Date Issued: February 17, 2005
Approved By: B. Gutierrez, Assoc. VP & Controller
16.5.3 CARE, MAINTENANCE, AND UTILIZATION
A. Scope
The following section prescribes procedures for the care, maintenance,
and utilization of Government property in the possession or control
of UT Austin or a subcontractor of UT Austin in accordance with Federal Acquisition Regulation (FAR) 45.510.
B. Responsibility
From the time of receipt until relieved of responsibility
by the appropriate Government Contracting Officer or property administrator,
UT Austin is responsible for the security, maintenance, and proper
utilization of Government-owned property in its custody. This responsibility
requires that the Project Director, as custodian, apply sound business
practices in controlling equipment and follow the applicable provisions
of the Federal Acquisition Regulation (FAR), the related property control procedures of the funding agency,
and the provisions of the grant or contract.
C. Storage of Government-Owned Property
Only authorized personnel will be allowed in storage areas.
The storage areas will be kept clean and have ample fire protection.
Outside storage areas will have lights and a fence. Chemicals, hazardous
substances, and flammable materials will have separate storage areas
in compliance with Federal, State, and Local regulations. Separate storage
areas will be provided for:
- Items temporarily removed from end item
- Repairable items
- Serviceable items
- Generated scrap by metal content
D. Removal of Government Equipment from UT Premises
Government equipment is not to be removed permanently
without written permission from the Contracting Officer. Equipment
may be checked out for short periods of time if the following conditions
are met:
- The removal is essential to the research being conducted.
- Repair or testing of the equipment.
- Return to the U.S. Government.
- A written receipt is signed by the person removing the equipment
and retained on file by the Project Director.
- The inventory record will be updated as to the new location by
the Project Director or by Inventory personnel.
- All government property being shipped for repair, testing, to
another research location, or returned to the U.S. Government will
be shipped either on a Government Bill of Lading or paid by contract/grant
funds. Equipment will be insured if paid by contract/grant funds
for full value. All shipping documents will be annotated "Government-owned
Property."
- Proper care shall be taken to ensure that all Government-owned
property being moved from one location to another is protected from
damage through the use of proper packing, special crates or coverings,
and adequate use of handling equipment (fork lifts, etc.). Standard
safety procedures will be utilized in all instances.
E. Maintenance of Equipment
1. Preventive Maintenance
The preventive maintenance measures are designed to preserve and
prolong the useful life of the property, minimize the incidence of
failure through breakage of its component parts, and promote its full
utility through maintenance of high standards of condition and performance.
The preventive maintenance program will include the following:
- Provision of a proper environment for the preservation of the
property, compatible with its use in performance of authorized research.
- Cleaning and painting, or application of suitable preservative
coatings to equipment, as required for surface protection and good
appearance as well as proper storage and preservation of accessories
and special tools furnished with an item of equipment but not regularly
used with it.
- Routine daily cleaning and lubrication of metalworking machines.
A thorough cleaning and lubrication will be scheduled weekly. Removal
of sludge, chips, and cutting oils from metalworking machines that
will not be used for an extended period of time.
- A constant surveillance by cognizant persons of all property,
especially machine shop equipment and vehicles, for evidence of
improper maintenance, malfunction, or wear, and the reporting of
equipment shortcomings to their supervisors.
- A periodic inspection and servicing of equipment to assure detection
of maladjustment, wear, or impending breakdown. Repairs and adjustments
by qualified personnel in the Applied Research Laboratories of The University of Texas at Austin's (ARL:UT's) Instrument Repair and Calibration
facility, Machine Shop facility, or by manufacturer's representatives
as appropriate.
2. Remedial Maintenance
The remedial maintenance measures are designed to correct deficiencies
in equipment as they become known. Remedial maintenance of property
will include prompt replacement or repair of worn or broken component
parts, except in cases where it is not economically advantageous.
3. Capital Rehabilitation
In the event that a piece of Government-owned equipment needs major repairs
to bring the item back to its original condition, the Project Director
shall get permission from the Contracting Officer before doing the
needed work.
4. Cannibalization of Government Equipment
Cannibalization is the removal or exchange of parts or assemblies
from an item of equipment to replace a damaged or worn out part or
assembly of another item of equipment. In keeping with sound maintenance
practices, cannibalization of a Government property item must not
be undertaken until approval is obtained from the appropriate Government
Contracting Officer. If necessary, assistance in gaining this approval
may be obtained from the Office of Accounting.
F. Utilization of Government Property
Government-owned equipment shall be used only for those
purposes related to the assigned contract/grant and/or may be used for
other research projects if it does not interfere with the use for the
main project. Rental or use fees charged to non-federal grants and contracts
will be determined from historical costs to operate equipment (supplies
and maintenance), and such charges will not exceed charges from local vendors
that rent like equipment. These charges will be approved by the Office of the Controller and reviewed annually or if circumstances change.
The Project Director is responsible for determining minimum
usage levels of Government-owned property with an acquisition value of
$5000 or more. If actual use drops below this level, an analysis of need
shall be made, and retention justified. If there is no longer a need for
the item, the Project Director shall make it known to the Office of Accounting,
where action will be taken to reassign the equipment elsewhere within
the UT Austin complex or as directed by the appropriate Government agency.
