Below authority applies ONLY to Federal Property (acquisition dollars or title):

48 Code of Federal Regulations Part FAR 45 and NASA FAR 1845
45.505-3 Records of Material
45.508-1 Physical Inventories Upon Termination or Completion
45.603 Disposal Methods
45.305-2 Return To Supplier
 

Material, as used in this document, means property that may be incorporated into or attached to a deliverable end item or that may be consumed or expended in performing a contract. It includes assemblies, components, parts, raw and processed materials, and small tools and supplies that may be consumed in normal use in performing a contract.
 

The activity on a government contract may involve the stocking of government–furnished materials, and/or material to which title has passed to the Government by reason of purchase by the department on a government contract for use in the fabrication of deliverables or contract activities.

When a Department chooses to establish stocks of Government-owned materials for future use on current or follow-on contracts, the Department is responsible for establishing and maintaining their own accounting procedures that are in compliance with the terms and conditions of the Government contract, these policies, and the procedures setout below.

Departments are directly responsible and accountable for the control, protection, preservation, use and documentation of all Government-owned materials in stock. Departments shall identify all Government-owned materials in stock as Government Property.

Departments are directly responsible and accountable to maintain and make available the records and information required by the Government on the stocking, use and inventory of Government-owned materials.

Departments are directly responsible for shortages, loss, damages or destruction of Government-owned materials, non-contract use of Government-owned materials, and consumption that unreasonably exceeds the allowances provided by the Government.

Departmental records of stocked materials are the Government’s and University’s official records of Government-owned materials for the contract.

Department’s maintaining Government-owned materials in stock may use as a minimum stock record Government invoices or shipping documents, University purchase documents or other evidence of acquisition as adequate property records for stock materials when accompanied with evidence supporting receipt and issue.

Government policy involving contract closeout and residual materials with a fair market value greater than $100 and in returnable quantities is to return these materials to the suppliers for full credit less the cost of restocking charge (not greater than 25%) and the cost of handling and transportation. Any other use or disposition of residual materials must be authorized by the Government in writing.