1. Installation Costs over $500

a. Equipment installed by NIST is recorded at the purchase order price plus installation costs, if costs exceed $500. Installation includes those functions necessary to put a piece of equipment in operable condition such as utility connections, ductwork, and pedestals. Not included are costs for the modification of the basic equipment, connection of separately capitalized auxiliaries, attachment of experimental setups, or other special arrangements necessary to adapt the equipment to its initial program use.

b. When the NIST Plant Division installs equipment on a fixed-price basis, the organizational unit acquiring the equipment must designate on Form NIST-461, Interdivision Work Order, the cost center (excluding manufacture of invested equipment series) and purchase order number on which the equipment was acquired. The Plant Division sends to Personal Property a copy of the work order indicating the amount to be added to the equipment purchase price to establish capital value.

c. If the installation is not handled on a fixed-price basis, then a manufacture of WCF invested equipment cost center should be established to accumulate the costs of the basic equipment and the installation.

d. Installation costs are recorded only the first time a piece of equipment is installed and put into operation. Moving and installation costs subsequent to the original installation are charged to a non-WCF invested equipment cost center.

e. Requisitions for equipment which may require construction or installation of utility services are routed through the Plant Division to ensure that the equipment can be installed properly.

2. Manufacture of WCF Invested Equipment

a. Individual cost centers are established in the manufacture of WCF invested equipment series (810-849) to accumulate the labor and other object costs of each piece of equipment to be constructed. If more than one piece of identical equipment is to be made, a single cost center may be established for accumulating costs. These cost centers are funded out of the requesting OU's WCF invested equipment allocation.

b. For each manufacture of WCF invested equipment cost center to be established, the originating organizational unit forwards to the Budget Division a completed Form NIST-630, Request for Cost Center Authorization or Change, and a completed Form NIST-635, Request for Authorization of Manufacture of WCF Invested Equipment Cost Center or Change. Once approved, the Budget Division then forwards a signed copy of Form NIST-635 to the Financial Policy Division.  Forms NIST-630 and NIST-635 should also be used for subsequent changes to the resources and/or end date for an established manufacture of WCF invested equipment cost center.  The forms must be received no later than noon on the second Friday of the pay period for which the cost center establishment or change is requested.

c. The estimated (or actual) start date should appear on Form NIST-630 as the "START" date. The estimated completion date, which may be in a future fiscal year, should appear on the Form NIST-630 as the "END" date. Form NIST-635 is used to justify and identify costs of equipment to be manufactured. The information provided on Form NIST-635 is used by the Budget Division in programmatic review and approval of the initial allocation of manufacture of equipment cost centers and reallocation in subsequent years. The information also assists the Financial Policy Division in timing its requests for Form NIST-409, Notice of Completed Manufactured Equipment, which is prepared by the originating organizational unit.

d. Research and development costs may not be charged to manufacture of equipment cost centers. The cost of the design, preparation of specifications and drawings, and costs of a similar nature incurred directly in the manufacture are charged if they can be segregated from research and development costs.

e. Upon completion of the equipment:

(1) The organizational unit responsible for the manufactured equipment submits to the Financial Policy Division Form NIST-409, Notice of Completed Manufactured Equipment.

(2) The Financial Policy Division inserts accounting data on Form NIST-409 and sends a copy to the Acquisition and Logistics Division. The Acquisition and Logistics Division assigns a NIST equipment identification number(s) and tags the equipment. The Financial Policy Division capitalizes the completed equipment when notified that it has been tagged.

(3) The amortization charges to recover the costs incurred from the manufacture of WCF invested equipment are charged biweekly to the organizational unit's overhead cost center(s).

f. If the equipment is not completed for some reason, then the cost center is terminated and all costs incurred must be transferred to a non-WCF invested equipment cost center(s).

g. Spending in each WCF invested equipment (IE) cost center must be kept within its authorizated level. If the total cost of manufacturing the equipment exceeds the authorized amount, the overrun must be covered by reassigning additional WCF IE authorization from other WCF IE cost centers within the same discretionary or special series in the OU.

h. Any funding balance remaining in discretionary WCF IE manufacture of equipment cost center(s) after completion of the equipment may be transferred to another discretionary WCF IE cost center. Any balance in special WCF IE manufacture of equipment cost center(s) after the equipment is completed must either be relinquished or reassigned to another WCF IE cost center within the same special series.