To qualify for an equipment fabrication account, your DLCI’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
Send or email your DLCI’s request for an equipment fabrication account to Michael McCarthy, 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
Your DLCI should 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 VPF Property Office immediately if any of the following circumstances arise with your DLCI’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
Your DLCI’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 Administration Services (RAS) 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
To qualify for an equipment fabrication account, your DLCI’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
Send or email your DLCI’s request for an equipment fabrication account to Michael McCarthy, 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
Your DLCI should 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 VPF Property Office immediately if any of the following circumstances arise with your DLCI’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
Your DLCI’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 Administration Services (RAS) 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.
