41 C.F.R. Subpart 109–27.50—Inventory Management Policies, Procedures, and Guidelines
Title 41 - Public Contracts and Property Management
Necessary inventories shall be established and maintained at reasonable levels, consistent with DOE requirements, applicable laws and regulations, and the following objectives: (a) The maintenance of adequate stock levels through accurate analyses of quantities to determine requirements and stock replenishments so that only minimal obsolescence losses will be encountered while ensuring adequate inventory levels to meet program schedules; (b) The protection of materials against misuse, theft, and misappropriation; (c) The maintenance of an efficient operation; and (d) The standardization of inventories to the greatest extent practicable. Comparison of investment in stores inventories to annual issues shall be made to assure that minimum inventories are maintained for the support of programs. This comparison may be expressed either as a turnover ratio (dollar value of issues divided by dollar value of inventory) or in the average number of month's supply on hand. Turnover or number of month's supply is calculated only on current-use inventory. Performance goals, i.e., a six months investment or a turnover ratio of 2.0, shall be established for each stores using activity. It is recognized, however, that extenuating operating circumstances may preclude the achievement of such objectives. (a) Stock control shall be maintained on the basis of stock record accounts of inventories on hand, on order, received, issued, and disposed of, and supported by proper documents in evidence of these transactions. Stock record accounts shall be available for review and inspection. (b) Personal property under stock control for greater than 90 days shall be maintained in stock record accounts. (a) Sub-stores shall be established when necessary to expedite delivery of materials and supplies to the users, serve emergencies, provide economy in transportation, reduce shop and site stocks, and enable stores personnel to provide assistance in obtaining materials and supplies as needed. (b) Items stored for issue in the sub-stores shall be treated as inventory items for control and reporting purposes. Stock records shall be integrated with central stock records so that the total amount on hand of any item at all locations is known. Shop, bench, cupboard or site stocks are an accumulation of small inventories of fast-moving materials at the point of use. Normally, these inventories are expensed at time of issue from controlled stores. However, when stocks of such inventories are not consumed or do not turn over in a reasonable period of time, which normally should not exceed 90 days, these items should be subject to the required physical controls and recorded in the proper inventory account. A stores catalog for customer use that lists items available from stock shall be established for each stores operation. Exceptions to this requirement are authorized where establishment of a catalog is impracticable or uneconomical because of small total value or number of items involved, or temporary need for the facility.
Title 41: Public Contracts and Property Management
PART 109–27—INVENTORY MANAGEMENT
Subpart 109–27.50—Inventory Management Policies, Procedures, and Guidelines
§ 109-27.5001 Objectives.
§ 109-27.5002 Stores inventory turnover ratio.
§ 109-27.5003 Stock control.
§ 109-27.5004 Sub-stores.
§ 109-27.5005 Shop, bench, cupboard or site stock.
§ 109-27.5006 Stores catalogs.
§ 109-27.5007 Physical inventories.
§ 109-27.5007-1 Procedures.
The following procedures shall be established for taking physical inventory of stocks subjected to quantity controls as well as those under financial control:
(a) Completion of a physical inventory not less frequently than every twelve months.
(b) Reconciliation of inventory quantities with the stock records.
(c) Preparation of a report of the physical inventory results.
§ 109-27.5007-2 Inventory adjustments.
Discrepancies between physical inventories and stock records shall be adjusted and the supporting adjustment records shall be reviewed and approved by a responsible official at least one supervisory level above the supervisor in charge of the warehouse or storage facility. Items on an adjustment report which are not within reasonable tolerances for particular items shall be thoroughly investigated before report approval. Adjustment reports shall be retained on file for inspection and review.
§ 109-27.5008 Control of drug substances and potable alcohol.
Effective procedures and practices shall provide for the management and physical security of controlled substances and potable alcohol from receipt to the point of use. Such procedures shall, as a minimum, provide for safeguarding, proper use, adequate records, and compliance with applicable laws and regulations. Controls and records of potable alcohol shall be maintained on quantities of one quart and above.
§ 109-27.5009 Control of hypodermic needles and syringes.
Effective procedures and practices shall provide for the management and physical security of hypodermic needles and syringes to prevent illegal use. Controls shall include supervisory approval for issue, storage in locked repositories, and the rendering of the items useless prior to disposal.
§ 109-27.5010 Containers returnable to vendors.
Containers furnished by vendors shall be administratively and physically controlled before and after issuance. Prompt action shall be taken to return such containers to vendors for credit after they have served their intended use.
§ 109-27.5011 Identification marking of metals and metal products.
§ 109-27.5011-1 General.
Metals and metal products shall be identified and marked in accordance with applicable Federal standards. This requirement applies to direct charges as well as to items procured for store, shop or floor stock, or for use on construction projects. Additional markings not covered by Federal standards should be used to show special properties, corrosion data, or test data as required. The preferred process is for the marking to be done in the manufacturing process, but it may be applied by suppliers when circumstances warrant.
§ 109-27.5011-2 Exception.
Exceptions to the marking requirement may be made when:
(a) It is necessary to procure small quantities from suppliers not equipped to do the marking;
(b) It would delay delivery of emergency orders; or
(c) Procurement is from DOE or other Federal agency excess.
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