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    The Logistics Readiness Center that oversees the CIF operation on post has put out a tasker that contractors can not sign a clothing record which they consider a hand receipt. With-in the tasker they reference AR 710-2 section 2-61: (3b) Hand receipting and lateral transferring of material, equipment, or supplies to contractors are prohibited. AR 735-5 section 2-5 (3c). Is a clothing record considered a hand receipt. Tasker also discuss GFP. Would OCIE fall under the category of Equipment per the FAR definition? Once question is assigned to an individual I can provide tasker and exhibits to help answer the question.


    Answer

    FAR 52.245-1 defines equipment as “…a tangible item that is functionally complete for its intended purpose, durable, nonexpendable, and needed for the performance of a contract. Equipment is not intended for sale, and does not ordinarily lose its identity or become a component part of another article when put into use. Equipment does not include material, real property, special test equipment or special tooling.”

    By FAR definition Organizational Clothing and Individual Equipment (OCIE) falls within the classification of “equipment.”
    This is also supported by AR 735-5 (7-2) which defines nonexpendable property as “personal property that is not consumed in use and that retains its original identity during the period of use.” 

    Let’s go a step further and see why OCIE would not be classified as material.  FAR 52.245-1 states ““Material” means property that may be consumed or expended during the performance of a contract, component parts of a higher assembly, or items that lose their individual identity through incorporation into an end item. Material does not include equipment, special tooling, special test equipment or real property.  AR 735-5 (7-6) specifies the classes and types of property to be classified as expendable.  There are no references to OCIE by either description or federal supply class that indicate that it is to be classified expendable.  Now that we have established that OCIE is equipment, let’s move on. 

    You want to know if an OCIE record is considered a hand receipt.  The Common Table of Allowances – Clothing and Individual Equipment (CTA 50-900) states “Items listed in this CTA will be accounted for on property books or hand receipted to individuals on DA Form 3645, DA Form 3645-1, DA Form 4886 or electronic version as prescribed by AR 710-2.  According to DA PAM 710-2-1, the OCIE record is used to assign responsibility.  By signing the OCIE record, the individual acknowledges receipt of and responsibility for the items.  Therefore, it is indeed a form of a hand receipt.  You have pointed out that hand receipting and lateral transfer of material, equipment, or supplies to contractors is prohibited by AR 710-2.  Excellent point!  It brings me to the next point I would like to make regarding the FAR. 

    FAR 45.201 states in paragraph (a) The contracting officer shall insert a listing of the Government property to be offered in all solicitations where Government-furnished property is anticipated (see 45.102).   With regard to GFP, FAR 52.245-1(d) states “The Government shall deliver to the Contractor the Government-furnished property described in this contract.”  It goes on to state that the contracting officer may by written notice, at any time – increase or decrease the amount of GFP under the contract, substitute GFP for property previously furnished, to be furnished or to be acquired by the Contractor for the Government under this contract; or withdraw the authority to use property. 
    In order to be covered by the requirements of FAR 52.245-1 and its liability provisions, the property must be covered by the contract. 

    Great questions!

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