FINANCIAL MANAGEMENT POLICY MANUAL

conditions directs the storage or movement of IPE that is required to meet
planned current or future needs. This paragraph delineates funding
responsibility for packing, crating, handling, and transportation (PCH&T)
costs and storage and removal costs related to the movement of idle IPE from
DIPEC facilities, from Navy activities, or from contractors' plants.
2. POLICY
a. PCH&T Costs. When an item of IPE is moved on the basis of a
movement notice issued by DIPEC, notwithstanding the fact that it may be
received via a Department of the Navy (DON) central inventory manager,
all costs incurred for PCH&T are the funding responsibility of DIPEC.
When the movement of an item of IPE is directed by a DON command, all
related PCH&T costs are the funding responsibility of the DON directing
command or a designated subordinate activity. The DON directing
command is also responsible for PCH&T costs in connection with the
transfer of items of IPE in DON industrial preparedness packages
(Assistant Secretary of Defense approved packages) stored at DIPEC
facilities; DON-controlled IPE items; and items in the DON prepositioned
war reserve stocks, whether or not stocked at DIPEC facilities.
b. Storage and Removal Costs
(1) Contractor-Owned Facilities or Contractor-Operated Government
Facilities. When DIPEC prescribes on-site storage of IPE items at
contractor-owned facilities or contractor-operated Government
facilities for a period beyond that covered by a production or facilities
contract, DIPEC will fund and contract separately for all storage and
removal costs. Upon completion of a DON contract, if removal of an
IPE item is required without additional storage, removal costs are
considered to be a part of the contract and are chargeable thereto.
(2) DON Activities. At DON activities, idle IPE that has been
reported to DIPEC for redistribution becomes DIPEC property. If
DIPEC requests on-site storage of the IPE, it will be accomplished by
the activity without reimbursement. In addition, if the DON activity
requires that the item be removed from its working location to a
storage location at the same activity, the removal costs will be
absorbed by the DON activity. Any subsequent costs of removal from
storage pursuant to a DIPEC movement notice will be the funding
responsibility of DIPEC. When IPE items are to be removed from the
DON activity immediately upon becoming available for redistribution,
the costs of removal will be funded as follows:
(a) from operation and maintenance funds supporting
nonindustrial activities,
Financial Management Policy
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