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    What is the difference between a LTDD (specifically the definition of damage) and a Mishap...Please define...


    Answer

    The Government Property Clause at FAR 52.245-1 only refers to loss, theft, damage, or destruction (LTDD).  The word “mishap” is not used.  However, if the Contractor’s Property Management System distinguishes between the LTDD and a mishap then their procedures must be clear as to what those processes are and how they are to be addressed (read below).
     
    Paragraph (f)(vi) “Reports” requires the contractor to comply with the following requirement:

    (vi) Reports. The Contractor shall have a process to create and provide reports of discrepancies; loss, theft, damage or destruction; physical inventory results; audits and self-assessments; corrective actions; and other property related reports as directed by the Contracting Officer.

    (A) Loss, theft, damage or destruction. Unless otherwise directed by the Property Administrator, the Contractor shall investigate and promptly furnish a written narrative of all incidents of loss, theft, damage or destruction to the property administrator as soon as the facts become known or when requested by the Government.

    (B) Such reports shall, at a minimum, contain the following information:

    (1) Date of incident (if known).
    (2) The name, commercial description, manufacturer, model number, and National Stock Number (if applicable).
    (3) Quantity.
    (4) Unique-item Identifier (if available).
    (5) Accountable Contract number.
    (6) A statement indicating current or future need.
    (7) Acquisition cost, or if applicable, estimated scrap proceeds, estimated repair or replacement costs.
    (8) All known interests in commingled property of which the Government property is a part.
    (9) Cause and corrective action taken or to be taken to prevent recurrence.
    (10) A statement that the Government will receive any reimbursement covering the loss, theft, damage or destruction in the event the Contractor was or will be reimbursed or compensated.
    (11) Copies of all supporting documentation.
    (12) Last known location.
    (13) A statement that the property did or did not contain sensitive or hazardous material, and if so, that the appropriate agencies were notified.
     
    The Contractor is responsible for establishing and maintaining a Property Management System in accordance with the requirements of the contract which includes the Government Property Clause (FAR 52.245-1).  This system must be consistent with voluntary consensus standards (VCSs) and/or industry-leading practices (ILPs).  As long as the Contractor’s system complies with these requirements AND their procedures fully explain “that mishaps are reported within the 4 hour time frame and that LTDD are reported within 24 hours as in accordance with our site Property procedure” then they are in compliance with the stated requirements.
     

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