14 FAH-1 H-200
REQUIREMENTS PLANNING AND USE
14 FAH-1 H-210
personal PROPERTY UTILIZATION
(CT:PPM-14; 06-28-2012)
(Office of Origin: A/LM)
14 FAH-1 H-211 Personal PROPERTY ANALYSIS
AND MANAGEMENT
(CT:PPM-14; 06-28-2012)
(Uniform State/USAID)
In the lifecycle management of U.S. Government personal
property, many types of personal property which are not critical to operations
are replaced only when they actually break down. Other types of property are
managed using a planned replacement cycle to ensure continual operations and
submission of necessary budget estimates. Reference OMB Circular A-11, Part 7,
Planning, Budgeting, and Acquisition of Capital Assets. The responsible
property official will need to include requirements for the replacement of
personal property. The condition of the personal property is a basis for
forecasting and justifying those requirements. Most personal property has a
definite life span. An item may become worn beyond repair or become otherwise
unusable or, after a period of time, maintenance and repair costs may exceed
the cost of replacing the item.
14 FAH-1 H-212 PROGRAM OBJECTIVES
(CT:PPM-14; 06-28-2012)
(Uniform State/USAID)
a. The objectives of a personal property replacement
program are to provide for the orderly replacement of personal property by
prescribing minimum replacement standards, and projecting equipment
requirements in terms of items with costs for planning purposes. The term
minimum replacement standards means criteria that can be expressed in various
methods such as maximum allowable one-time repair limits as percentage of
acquisition cost, mileage, or some period of time. Factors used in the process
are life cycle; degree of use; historical maintenance cost; exchange/sale value
at various stages of lifecycle; established ratio of one-time repair cost,
including any shipment cost, to replacement cost; and other factors, such as
the availability of local repair capability, that can be used as a reasonable
basis for determining whether personal property should be replaced and that
results in the best return to the U.S. Government.
b. The acquisition of new items must be limited to
those requirements that are considered essential and must not include upgrading
to improve appearance, office dcor, status, or to satisfy the desire for the
latest design or more expensive item.
c. Personal property is not replaced just because it
has been in use for a specific period of time.
14 FAH-1 H-213 U.S. Government-wide
minimum replacement standard
(CT:PPM-14; 06-28-2012)
(Uniform State/USAID)
a. Federal Supply Group (FSG) 39 Material Handling
Equipment: Material handling equipment will not be replaced unless the
estimated cost of necessary one-time repair or reconditioning of each piece of
equipment exceeds, at lowest available cost, the applicable percentage of
acquisition cost as shown in column 3 of the table at 41 CFR 101-25.405.
Equipment eligible for replacement under the criteria established by this
standard may be repaired provided the expected economical life is extended
commensurate with the expenditure required. Prior to incurring repair costs
for equipment eligible for replacement, consideration should be given to the continuing
availability of repair parts.
b. FSG 23 Ground Effect Vehicles, Motor Vehicles,
Trailers, and Cycles: The motor vehicle minimum replacement standards specify
the number of years in use or miles traveled at which an executive agency may
replace a U.S. Government-owned motor vehicle. A U.S. Government-owned motor
vehicle may be replaced sooner than the standards if it needs body or
mechanical repairs that exceed the fair-market value of the motor vehicle. The
replacement standard is a minimum only and, therefore, you may keep a U.S. Government-owned
motor vehicle longer than shown in 41 CFR 102-34.270 if the motor vehicle can
be operated without excessive maintenance costs or substantial reduction in
resale value. You must keep a U.S. Government vehicle for at least the years
or miles shown in the table at 41 CFR 102-34.270, unless the motor vehicle is
no longer needed and declared excess.
c. FSG 71 Furniture: Furniture (office, household,
quarters, and institutional) must not be replaced unless the estimated cost of
repair or rehabilitation, including any transportation expense, exceeds at
least 75 percent of the cost of a new item of the same type and class. An
exception is authorized in those unusual situations in which rehabilitation of
the furniture at 75 percent or less of the cost of a new item would not extend
its useful life for a period compatible with the cost of rehabilitation.
Reference 41 CFR 101-25.404. Additionally, the Department has determined the
additional minimum replacement standards for the following types of property:
|
Federal Supply Group (FSG)
|
|
Department Minimum Replacement Standard
|
|
41 Refrigeration, air conditioning, and air
circulating equipment
|
|
3 years
|
|
61 Electric wire, power and distribution equipment
|
(includes 6115 generators and generator sets,
electrical)
|
10 years
|
|
70 Automatic data processing equipment
|
(includes desktop, laptop, etc)
|
4 years
|
|
71 Furniture
|
(office and household)
|
12 years
|
|
72 Household and commercial furnishings and
appliances
|
(includes mattress)
|
4 years
|
|
73 Food preparation and serving equipment
|
|
5 years
|
|
74 Office machines, text processing systems, and
visible record equipment
|
|
8 years
|
d. Each bureau/office/post evaluates its minimum
replacement standard that reflects unusual local conditions. The bureau/office/post
considers the degree of use of the item, extreme climatic conditions,
fluctuation of electrical power (if applicable), availability and quality of
maintenance and repair facilities, actual past exchange/sale or other local
conditions that may influence the minimum replacement standard.
14 FAH-1 H-214 REPLACING personal
PROPERTY RECORDED using ILMS
(CT:PPM-14; 06-28-2012)
(State Only)
All Department activities that are using ILMS can refer to
the "Items Due for Replacement" when determining which items may need
to be replaced within a given year. This report lists all personal property
items that have a replacement year within the range of replacement years,
specified when you generate the report via ILMS. The ILMS report generation
process allows the user to further limit the results using the other report
parameters, such as select items by designated condition code. The ILMS user must
evaluate the property listed on the ILMS generated "Items Due for
Replacement Report" to ensure the minimum replacement standard for certain
types of property listed at 14 FAH-1 H-213
that are not based on time are addressed properly. Additionally, ILMS users
must consider the current condition of the property during the determination
process for property that will actually be proposed for replacement in a
specific year. ILMS automatically calculates a replacement date. However,
ILMS users may set a customized replacement date if needed by specifying a date
in the field.
14 FAH-1 H-215 REPLACING PROPERTY NOT
RECORDED ON ILMS
14 FAH-1 H-215.1 Replacement
Schedule
(CT:PPM-14; 06-28-2012)
(Uniform State/USAID)
Personal property not listed on any property records (see 14 FAM 411.4
for accountable property), may not need a replacement schedule if the property
is not critical to operations and replaced only when items actually break
down. A manager may need to use a replacement schedule for personal property
not recorded in ILMS. A replacement schedule is a listing, by fiscal year, of
personal property due for replacement.
14 FAH-1 H-215.2 Developing
Replacement Schedule Data
(CT:PPM-14; 06-28-2012)
(Uniform State/USAID)
a. Property staff should develop a schedule for
replacement based on actual condition; age; degree of use of the item; climatic
conditions; fluctuation of electrical power (if applicable); availability;
quality of maintenance and repair facilities; and actual past exchange/sale
history or other local conditions, which may influence the minimum replacement
standard.
b. The first step is to establish an estimated
replacement year for each item. In order to do this, property staff needs to
identify the current age of the item. Age can be determined from the item's
acquisition date or manufacturer date, which may be on a label on the
property. If the acquisition date or manufacture date is not on the property
records, appraise the item during the next physical inventory and evaluate its
life expectancy.
c. Once property staff has acquired the current age,
or an estimated current age, they estimate the life cycle of the item, using
the minimum replacement standard (see 14 FAH-1 H-213).
Enter the projected replacement year on the ILMS Asset Management System. When
all of the replacement years have been entered on these records, they can be
used to prepare the schedule.
d. Depending on how narrow or broad the categories on
the property records are, an alternative to the estimation methods may be
reviewing the disposition records to determine how many different types of
items have been disposed of during the past 3 or 4 years, and establish a
percentage of the total "by type" on hand to be replaced each year.
The danger here is that the types of items grouped on the records may be too
dissimilar to be of any value in establishing replacement quantities by "item
type" (e.g., office executive swivel chair being one type and office
standard swivel chair being another). Property staff should ensure that items
are similar. For example, office executive swivel chairs should not be
combined with office standard swivel chairs under the general heading of
"office swivel chairs," nor should office standard side chairs be
combined with office standard swivel chairs under the general heading of
office standard chairs since they are not similar items.
14 FAH-1 H-215.3 Replacement
Schedule Preparation
(CT:PPM-14; 06-28-2012)
(Uniform State/USAID)
Property staff preparing a replacement schedule should
list the property items that will need to be replaced in the coming years so
the property can be readily identified. The data and format do not matter, as
long as the schedule serves the needs of management and budget office. It is
recommended that separate schedules be prepared for office items, household
items, and for accountable personal property.
14 FAH-1 H-216 VERIFYING PROPERTY TO BE
REPLACED
14 FAH-1 H-216.1 Determination of
Personal Property Condition
(CT:PPM-14; 06-28-2012)
(Uniform State/USAID)
Personal property should not be automatically replaced at
the end of the estimated life cycle. Before taking any replacement action, an
item should be examined to determine whether its current condition warrants
replacement and, if so, whether repair or refurbishing the item could be a less
costly alternative.
14 FAH-1 H-216.2 Identifying
Excessive Repair Costs Using the ILMS Asset Management System
(CT:PPM-14; 06-28-2012)
(State Only)
Before taking any replacement action, review the
Maintenance Detail Report generated from ILMS to identify any items on which
excessive repair expenditures have been made. Make a determination whether to
keep the items or to replace them earlier than the estimated replacement year. The
report also provides labor and parts costs for the work.
14 FAH-1 H-217 ADJUSTMENTS
(CT:PPM-14; 06-28-2012)
(Uniform State/USAID)
a. The replacement years listed are estimated
replacement years. In some cases, because of accelerated use, wear, damage,
etc., some items will probably have to be replaced ahead of schedule while
others, which may continue to be in good condition, will be delayed.
b. Additionally, if your schedule has been developed on
a zero-growth forecast for the organization, adjustments may be necessary if
changes in personnel, space, etc., occur.
14 FAH-1 H-218 EXCEPTIONS TO SCHEDULED
REPLACEMENT
(CT:PPM-14; 06-28-2012)
(Uniform State/USAID)
If still required, keep any item of personal property that
is in usable and workable condition even though the prescribed replacement
standards would permit replacement, provided that the personal property can be
used or operated for the additional period without excessive repair or
maintenance costs, or substantially reducing the exchange/sale value of the
item. Additional factors include consideration of the continuing availability
of repair parts, as well as the appropriate time for disposition of the item as
a saleable, useable item versus having to pay for disposition to a landfill or
recycler if retained too long.
14 FAH-1 H-219 FILES
(CT:PPM-14; 06-28-2012)
(Uniform State/USAID)
All work papers and plans concerning the personal property
replacement program may be processed in accordance with General Records
Schedule 5, Budget Preparation, Presentation, and Apportionment Records,
paragraph 2, Budget Background Records, by Destroy 1 year after the close of
the fiscal year covered by the budget" (NC1-GRS-81-13 item 2).