Your DLC may receive authorization to fabricate a new piece of equipment in connection with a research contract or grant.

Confirm fabrication qualifications

To qualify for an equipment fabrication account, your DLC’s need must meet minimum criteria.

  • total fabrication cost must meet or exceed $5,000
  • useful life of fabricated item must exceed one year
  • item must be a discrete piece of equipment that is taggable using MIT’s standard equipment label (parts are not considered fabricated equipment)
  • fabricated item must not be delivered to a sponsor or a sponsor-directed third party
Contact VPF Property Office

Send or email your DLC’s request for an equipment fabrication account to Kerry Johnson, VPF Property Office, NE49-3000, with the following information:

  • description and diagram of the item to be fabricated
  • parent WBS cost object
  • total budget estimate of allowable costs including description, quantity, unit cost, and vendor (if known)
  • estimated completion date
  • estimated useful life of fabricated item (starting from delivery date)
  • locations of the item during fabrication and use at MIT
  • name of the person responsible for the fabricated item
Review allowable G/L accounts

Your DLC must use one or more of the following general ledger (G/L) accounts for fabrication cost estimates:

  • 421818 Capital Equipment (only for internal components or integral parts of the fabrication)
  • 420226 Materials and Services
  • 420160 Cost of Electrical Components
  • 420232 Mechanical Components
  • 420310 Raw Materials
  • 420600 Subcontractor’s Costs
Notify the Property Office of schedule and cost changes

Notify the VPF Property Office immediately if any of the following circumstances arise with your DLC’s equipment fabrication:

  • the item is completed ahead of schedule
  • you need an extension of the original completion date
  • you need to revise the cost estimate
Certify completion of fabrication

Your DLC’s equipment fabrication account terminates automatically on the original expiration date of your account. At that time, the VPF Property Office will send you an email asking you to certify that the fabrication is completed and all associated costs are in.

The Property Office will notify Research Accounting to credit the appropriate G/L accounts with all allowable costs, and it will move any unallowable costs to the parent WBS. Any of your costs that do not meet the minimum criteria for fabricated equipment will not be capitalized and will be subject to overhead costs.

The Property Office will conduct a field inspection to determine if the item meets the minimum criteria for fabricated equipment. If it does not, the Property Office will transfer all costs to the parent WBS, and these costs will be subject to overhead. Refer to MIT’s fabrication policies for details.

The Details

Confirm fabrication qualifications

To qualify for an equipment fabrication account, your DLC’s need must meet minimum criteria.

  • total fabrication cost must meet or exceed $5,000
  • useful life of fabricated item must exceed one year
  • item must be a discrete piece of equipment that is taggable using MIT’s standard equipment label (parts are not considered fabricated equipment)
  • fabricated item must not be delivered to a sponsor or a sponsor-directed third party
Contact VPF Property Office

Send or email your DLC’s request for an equipment fabrication account to Kerry Johnson, VPF Property Office, NE49-3000, with the following information:

  • description and diagram of the item to be fabricated
  • parent WBS cost object
  • total budget estimate of allowable costs including description, quantity, unit cost, and vendor (if known)
  • estimated completion date
  • estimated useful life of fabricated item (starting from delivery date)
  • locations of the item during fabrication and use at MIT
  • name of the person responsible for the fabricated item
Review allowable G/L accounts

Your DLC must use one or more of the following general ledger (G/L) accounts for fabrication cost estimates:

  • 421818 Capital Equipment (only for internal components or integral parts of the fabrication)
  • 420226 Materials and Services
  • 420160 Cost of Electrical Components
  • 420232 Mechanical Components
  • 420310 Raw Materials
  • 420600 Subcontractor’s Costs
Notify the Property Office of schedule and cost changes

Notify the VPF Property Office immediately if any of the following circumstances arise with your DLC’s equipment fabrication:

  • the item is completed ahead of schedule
  • you need an extension of the original completion date
  • you need to revise the cost estimate
Certify completion of fabrication

Your DLC’s equipment fabrication account terminates automatically on the original expiration date of your account. At that time, the VPF Property Office will send you an email asking you to certify that the fabrication is completed and all associated costs are in.

The Property Office will notify Research Accounting to credit the appropriate G/L accounts with all allowable costs, and it will move any unallowable costs to the parent WBS. Any of your costs that do not meet the minimum criteria for fabricated equipment will not be capitalized and will be subject to overhead costs.

The Property Office will conduct a field inspection to determine if the item meets the minimum criteria for fabricated equipment. If it does not, the Property Office will transfer all costs to the parent WBS, and these costs will be subject to overhead. Refer to MIT’s fabrication policies for details.

Did You Know?

The Property Office houses used furniture in a warehouse on campus and can help outfit an office for free, or for just the cost of moving it.
The Property Office administers a separate accounting program for equipment that is fabricated on campus.
Even if you have equipment donated to your lab or center, the Property Office must keep track of it in the Institute’s inventory system.
You can get a listing of all your DLC’s computers by emailing the VPF Property Office. In your message, list your DLC number or costs centers and specify how you want the report sorted—by location, person, account, equipment, or type.
You can access eProp—the Institute’s database of nearly 100,000 items—by contacting Richard Janus in the Property Office.
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