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What is DOSAR? And What Do I Need to Know About It?

A plane in a warehouse with its side opened for repair. Text overlay reads What is DOSAR?

Your proposal team barges into your office and exclaims, “We need you to look into DOSAR!”

Hearing “Dozer,” you may initially think your organization is planning to manufacture napping pods… But that would be unlikely.

So, like most of us, you turn to Google. After some digging, you figure out that DOSAR stands for Department of State Acquisition Regulation. 

The Department of State (DOS) has determined they need additional government property requirements beyond those included in the FAR. Thus, enter DOSAR.

Your company can minimize risk and properly price the asset management support piece when you understand DOSAR requirements. This is vital when bidding on a Department of State solicitation that includes government property.

In this post, I will discuss two important DOSAR clauses you should know, and how to meet their requirements.

DOSAR 652.245-70 Status of Property Management System

Do you have a property management system, and has a Federal property manager determined it to be “adequate?”

Whatever your answer, DOS solicitations that include DOSAR 652.245-70 will need a response to these questions.

If the answer to both of these questions is “Yes,” then pat yourself on the back, because you have experienced managing government property.

Be sure to provide the contact details for the Cognizant ACO (Administrative Contracting Officer) responsible for determining adequacy. Include the cognizant contractor government property manager who handles inventory, as well.

If the answer is a “No” to these questions, then it would be best to lean on the capabilities of systems and tools that can enable your team to respond “No, but…”

To make this happen, you need a property management system. A property management system is a combination of your company’s government property management plan and the tools used to carry out that plan.

Strive to include written procedures that incorporate best practices recommended by outstanding groups like the National Property Management Association and National Defense Industrial Association. You may also find this blog post on the 22 Property Management Elements to be helpful. When you source from the experts, you can be much more confident including your property management plan in the proposal.

You can also gain an advantage by specifying that you will use FAR- and DOSAR-compliant software to manage in the inventory in the event of an award.  Most ACOs prefer to audit modern property management tools. Auditing tools with robust search and reporting functionality is much easier than a confusing spreadsheet somebody cooked up.

Be sure to understand the government property inventory size and talk to some software vendors. This will help you calculate whether you should include the leverage a software system in the proposal.

652.245-71 Special Reports of Government Property

Tell me if this sounds like a fun time:

Gathering data from multiple sources. Sorting/filtering the information. Copying and pasting data into one consolidated deliverable.

Yes, I am talking about creating a report manually.

If research centers studied the few who actually enjoy manually compiling reports, they would likely determine they either have the patience of a monk or are confirmed masochists.

However, DOSAR clause 652.245-71 requires contractors to maintain certain data records and provide a property report quarterly. Let’s explore what this entails in more detail.

Your organization must establish and maintain a property management system that complies with FAR 52.245-1. This is likely not a surprise.

But DOSAR 652.245-71 takes things a step further. It requires the contractor to adhere to U.S Department of State capitalized reporting requirements.

Included in these capital asset reports are:

  1. All highway motor vehicles and aircraft, regardless of cost, that is either government furnished, or contractor acquired property; or
  2. Software that exceeds $500,000 in value that is either government furnished, or contractor acquired property; or
  3. Personal property greater than $25,000 that is either government furnished, or contractor acquired property.

The DOS specifies that the report with these assets must be grouped into the following property classifications:

  1. Highway motor vehicles;
  2. Communications equipment;
  3. Information technology (formerly called automated data processing) equipment;
  4. Reproduction equipment;
  5. Security equipment;
  6. Software;
  7. Software-in-development;
  8. Medical equipment;
  9. Aircraft property; and
  10. Other depreciable personal property.

…and the report should include the following data for each unit of property:

  1. Contract number: Federal Government contract or purchase order number;
  2. Task Order number;
  3. Property classification: From classification listed in paragraph (d)(1) of this clause;
  4. Denotation as either government-furnished property (GFP) or contractor-acquired property (CAP) (If from another DOS contract, or government agency, please specify);
  5. Noun name of property (i.e. generator);
  6. Description of property;
  7. Manufacturer;
  8. Model;
  9. Serial number;
  10. National Stock Number if applicable
  11. Unique-item identifier or equivalent: such as barcode label (tag number) or system-assigned number. For highway motor vehicles, this must be the vehicle identification number (VIN);
  12. Date received: Date contractor took possession;
  13. Date placed in service;
  14. Acquisition cost (As defined in FAR clause 52.245-1(a)): Use estimated fair-market value for property transferred or donated, at the time acquired, if actual cost is unknown;
  15. Estimated useful life in years: The period during which the property is expected to provide the service for which it was intended. This should normally be equivalent to the depreciation schedule;
  16. Current location of the property: Country and city;
  17. Disposal Date;
  18. Disposal Method;

The DOS gives the contractor two options for the report composition and format:

  1. The contractor submits a full property report as the initial report. Every quarter following, the contractor only reports new acquisitions and dispositions.
  2. The contractor provides a full report showing all capital asset acquisitions and dispositions during the life of the contract.

Whichever your organization chooses, be sure to observe the report submission calendar displayed in 652.245-71 (h), and submit it electronically to one of the provided emails. The report format can be Excel or PDF.

Conclusion

You can look at this requirement as an opportunity to provide accurate and useful information to their customer.

Or as a massive time burglar that presents another area the customer can find your property system as deficient.

No matter how you view them, DOSAR requirements are the reality of doing business with DOS. But you can minimize problems and increase benefits. Learn about requirements that apply to your contracts, and research tools to make adhering to them easier…and try not to get tired and “DOSAR” off reading your contracts.

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