Tracking government procurement property meticulously is essential for any contractor working with the U.S. Department of Defense (DoD). Compliance with the Defense Contract Audit Agency (DCAA) regulations ensures that government property is appropriately managed, accounted for, and utilized, safeguarding taxpayer dollars and maintaining transparency.

Key Principles:

1. Identification and Marking:
   • All government-furnished property (GFP) and contractor-acquired property (CAP) must be clearly identified and marked upon receipt.
   • Utilize unique identification tags, barcodes, or other appropriate methods to distinguish government property from contractor-owned property.
2. Record Keeping:
   • Maintain detailed and accurate property records throughout the property’s lifecycle.
   • Include information such as item description, acquisition date, cost, location, condition, and any transfers or disposals.
   • Implement a reliable property management system, whether electronic or manual, that allows for easy retrieval and reporting of property information.
3. Physical Inventory:
   • Conduct regular physical inventories to verify the existence and condition of government property.
   • Compare physical counts against property records to identify any discrepancies.
   • Investigate and resolve any discrepancies promptly.
4. Usage and Control:
   • Ensure that government property is used solely for its intended purpose as specified in the contract.
   • Implement appropriate controls to prevent loss, damage, theft, or unauthorized use of government property.
   • Restrict access to government property to authorized personnel only.
5. Disposition:
   • Follow proper procedures for disposing of government property when it is no longer needed or usable.
   • Obtain necessary approvals from the contracting officer before disposing of government property.
   • Document the disposition process, including the method of disposal and any proceeds received.

Additional Considerations:

• Subcontractor Management: Ensure that subcontractors also comply with DCAA property management requirements.
• Internal Controls: Establish strong internal controls to safeguard government property and prevent fraud or misuse.
• Training: Provide adequate training to employees involved in managing government property to ensure they understand and follow proper procedures.
• Audit Readiness: Maintain property records in a DCAA-compliant format to facilitate audits and ensure a smooth audit process.

Effective tracking of government procurement property is vital for DCAA compliance and maintaining a successful relationship with the DoD. By implementing robust property management practices, contractors can demonstrate responsible stewardship of government assets and minimize the risk of non-compliance issues.

Ready to ensure DCAA compliance and strengthen your relationship with the DoD by effectively tracking government procurement property? Reach out to Daston’s NetSuite experts today to implement robust property management practices, demonstrate responsible asset stewardship, and minimize the risk of non-compliance. Complete the form below to reach out to our NetSuite team today. 

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