UFC 1 -300-08
30 JUNE 2004
1-5.3
The most important aspect of the revised procedure (also not new) is the
requirement for the construction agent to provide the client with an `interim' DD Form 1354
with all relevant data 30 days prior to the final inspection. This form must contain details of
the construction project sufficient to establish or update a real property record. The RPAO
is then required to capitalize the asset within a short time afterward and both parties must
ensure that the CIP account is reduced by the same amount. When the work order and
project are completed, both the construction agent and client will update their facility
records and CIP accounts to reflect transfer and acceptance of the new capital asset. If
there are protests or litigation, that financial closure may be postponed for up to ten years,
but the records would have been substantially complete based on the `interim' DD Form
1354 and the estimated project costs.
1-5.4
The other aspect this UFC emphasizes is both parties signing the DD Form
1354 before occupancy, regardless of the size of the punch list. Current practices have
allowed occupancy without acceptance, or, conversely, unwillingness to accept the
construction until completion of the punch list. Both these practices have never been
approved, but through failure to enforce these requirements, have been common.
Enforcement is essential for accurate reporting of assets and liabilities and an eventual
clean audit opinion, as well as orderly transfer of capital assets from contractors to property
managers. Effective management of the acceptance and transfer process must be based
on mutually accepted practices. The DD Form 1354 functions in government as the deed
and is often the most important source document for the records. It binds the transaction.
This UFC emphasizes that accumulating the data needed at final inspection must begin
with the design phase. When addressed early, the data can be efficiently sorted and ready
for the client without time-consuming research and hand-written or typed checklists.
1-5.5
This UFC fills a critical gap in the overall process of real property accountability
within DoD. The updated DD Form 1354 reflects a long-overdue modernization, and this
UFC handbook provides the first-ever consistent comprehensive guidance on how to
properly process capital construction acquisitions. The Departments envision a periodic
review and revision to reflect changes in DoD policies, procedures, systems and
terminology to ensure accuracy and reliability in this important process. This UFC is
backed by the desires and best practices in real property accounting by all three
Departments.
1-6
SCOPE. Chapter 1 covers the target audience for this UFC, the various usages
of the DD Form 1354, and who prepares it. Chapter 2 describes the data required to
prepare a completed form. Chapter 3 describes the three different versions of the DD
Form 1354 and when to use each version. Chapter 4 explains how the Realty Specialist
uses the data from the completed form to enter data into the real property database and
how the construction agent project manager uses the data to manage the CIP Account.
Chapter 4 also explains how to document various real estate transactions. Chapter 5
provides guidance to the construction agent project manager to ensure that total project
cost equals the sum of individual facilities costs. Chapter 6 lists the standard attachments
to the 1354 and sets acceptance standards for completeness, timeliness and accuracy to
help the accepting official know whether the DD Form 1354 should be accepted or
1-3
Previous Page
