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  • Question

    So, similarly, should upgrades that raise acquisition value not be factored into what is entered in PCARSS? For examples, upgrades that mean additional expensive parts...or even labor costs? Thank you!


    Answer

    There is no requirement to factor in appreciation or depreciation. FAR Part 45 refers to "unit acquisition cost" when outlining the costs to be used during the disposal/reutilization process.

    FAR 52.245-1 requires the use of unit acquisition cost as follows:

    “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 accepted accounting principles.



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