Fabrication Definitions


Allowable Costs

Costs of materials and non-salary services under the approved GL Accounts that directly make up the fabricated item and can be identified when complete. Unallowable are costs of documentation, repair, maintenance, administrative support equipment, capital equipment that is not internal or integrated into the fabrication, minor equipment, enhancements to other equipment or any other indirectly related cost.

Capital Equipment

The original budget estimate should not include as components of the fabrication a significant amount of stand-alone and commercially available equipment. It is unusual to have equipment "components" of this type to be assembled together as a discrete unit. Generally this equipment operates relationally but not as a discrete unit and will not be allowed as a fabrication. Capital equipment that is not an integral part of the fabrication should be purchased on the parent WBS.

Useful Life

Fabricated items that have been disassembled prior to meeting the useful life criteria of one year or more after functional completion will be disallowed. It will not be sufficient to reassemble the fabrication only for the purpose of tagging and accountability.

Building Parts Rather Than Discrete Items

The current policy requires the end item to be discrete and taggable and not part of another unit or assembly. This criteria will be applied uniformly to all requests and closings.

Deliverables

Completed Fabricated Equipment delivered to sponsors or sponsored directed third parties before it has been used in place at MIT for at least a year will be disallowed. Completed Fabricated Equipment loaned to sponsors or sponsored directed third parties will require a written request for loan from the sponsor and the concurrence of the Principal Investigator. The period of loan should not exceed one year. Fabricated Equipment on such loans may be transferred to sponsors upon written request after the expiration period of the loan.

Revised Budget

Requests for changes in scope that significantly adds to or changes the material content require a justification and may require a field check by Property on original budgeted materials and services and progress toward completion. A submittal of a request for extension must include a new budget and estimated completion date.

Extension of Time

Realistic completion dates must be submitted. Fabrications that extend beyond estimated completion dates with no significant progress will be disallowed. Requests to extend require a justification and will only be extended to new expected complete date after a field check by Property personnel verifying the original budgeted materials and services and progress toward completion.