UFC 1 -300-08
30 JUNE 2004
the determination. However, he/she must record any capital improvement into IFS,
iNFADS, ACES, or other real property database system, if the capital improvement
exceeds the reporting threshold. The Date of Capitalization is the Effective Date of
Transaction in block 9D. The description of the capitalization should be in Project
Remarks, block 28. For projects funded by Defense Agencies, the funding agency has
final approval of the capitalization decision.
4-4
TRANSFER EQUIPMENT INFORMATION . The preparer of the DD Form
1354 attaches two lists of equipment: installed building equipment (IBE), which is real
property, and equipment-in-place (EIP), which is personal property. The preparer must not
combine both types of equipment in a single list. Because the difference between IBE and
EIP requires engineering judgment, the construction agent project manager must clearly
identify the items of equipment as either IBE or EIP. Definitions and examples of each
follow.
4-4.1
Installed building equipment. IBE is an item of equipment that is affixed and
built into the facility as an integral part of that facility. To qualify as IBE the equipment must
be necessary to make the facility complete, and if removed, would destroy or severely
reduce the usefulness of the facility. IBE costs are included as a funded construction cost
and should have itemized costs listed separately on an attachment to the DD Form 1354.
Account for IBE as real property with an equipment asset record, but do not create
separate facility records in the real property database for IBE. Examples of IBE and their
Army category codes are:
Heat plant (821XX)
Refrigeration source (826XX)
Fire alarm system (88010)
Automatic water sprinkler system (88110)
Special fire extinguishing system (88120)
Standpipe system (88130)
4-4.2
Equipment-in-place. EIP is a special category of personal property (not real
property). EIP consists of capital equipment and other nonexpendable equipment of a
movable nature that has been fixed in place or attached to real property, but not as an
integral part of the facility, and therefore may be severed or removed from a facility without
severely damaging, destroying or reducing the usefulness of the facility. EIP does not
include installed building equipment, is personal property, and is accounted for on property
book records (not real property records). Do not account for EIP as real property and do
not create separate facility records in the real property database even though some EIP
items have real property category codes. EIP costs may be included as a funded
construction cost and if so, must be attached as a separate EIP listing with costs itemized
separately and attached to the DD Form 1354. For real property capitalization purposes,
the cost of EIP is subtracted from total project/construction costs. Transfer accountability
for EIP personal property by providing the EIP documentation to the appropriate Property
Book Officer, who will enter the newly acquired EIP into the appropriate property book and
include the EIP in the personal property hand receipt of the facility occupant using the
4-3
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