Completing a construction or refurbishment project is a complex task, but the process doesn’t end there. To officially establish ownership, allocate funding, and ensure maintenance for a new or refurbished facility or utility, the completion of the DD 1354 document is of utmost importance. This document, known as the “Transfer and Acceptance of Military Real Property,” plays a critical role in the handover process for headquarters (HQ) and base-run projects. In this article, we will guide you through the real property procedure, emphasizing its significance and the steps involved.

Why the DD 1354 Matters

The DD 1354 serves as a pivotal document in the handover process. It officially establishes ownership from the perspective of the United States Air Force (USAF) and allows the Base Civil Engineer (BCE) to take ownership and allocate funding for the newly constructed or refurbished facility. Until this document is completed, the facility remains in use but is not officially part of the USAFE Real Property Records. This can jeopardize future funding and construction programs for the respective base.

Roles and Responsibilities

The Civil Engineering Real Property Office (CERPO) is primarily responsible for recording real property adjustments. In the United Kingdom, where Defense Estates administers construction contracts for MOD installations, it’s their responsibility to provide an interim DD 1354 to the Civil Engineering Squadron (CES). This interim document is crucial to review estimated costs and funding allocation. The Real Property Accountable Officer (RPAO) is responsible for capitalizing maintainable assets from construction contracts, and they use Form DD 1354 to record estimated facility costs.

DD 1354 Completion Timeline

The DD 1354 must be prepared at three key stages of a project:

(A) Design Completion: At this stage, the Design Engineer (DE) Project Manager (PM) produces the Draft DD 1354, based on the 100% approved design. This document is crucial for securing early funding for facility maintenance.

(B) Physical Completion: The Interim DD Form 1354 should be issued by the PM via DE PS for review at the pre-handover and phased or partial handover stages. This document reflects the as-installed construction and provides a clearer financial position.

(C) Final Account: Approximately 3-4 months following handover, the PM issues the Final Form DD 1354. This document accounts for any financial adjustments that may have occurred since the handover stage.

Review and Approval

Once these DD 1354 documents are created, they undergo a thorough review process. Here’s a simplified overview of the steps:

1. The PM provides the DD 1354 as part of the Real Property Turnover and Acceptance (RTA) package.

2. At the 100% design stage, the DE PM, via DE PS, produces the Draft DD 1354 based on the approved design. This step occurs within a few weeks of approval and enables early funding for facility maintenance.

3. A signed copy of the Draft DD 1354, accepted by the base, is placed in the US PM project file.

4. At the pre-handover or phased handover stage, the Interim DD Form 1354 is issued by the PM via DE PS for review. This stage provides a clear financial picture based on the as-installed construction.

5. The Interim DD 1354 is sent to the CE Real Property Manager at the applicable base for review and comments. In the case of MILCON or NATO projects, it’s also sent to the Chief of Finance for reconciliation against finance records.

6. Review comments are returned to DE PS for action by the PM.

7. After amendments based on the review comments, the amended Interim Form DD 1354 is formally issued as part of the documentation required for handover.

8. Upon the completion of the Final Account, the PM issues the Final Form DD 1354. This document includes any financial adjustments and identifies all design and non-Real Property Installed Expenditure (non-RPIE) costs associated with the construction costs detailed on the DD 1354.

For NATO and MILCON projects, the DD 1354 is passed to A7CWF for final reconciliation. The completed Final DD 1354 is issued to the Base CERPO and copied to BCE. A signed copy, approved by the authorized Base representative, is returned to A7CW and DE PS.

Completing Form DD 1354

To ensure the proper completion of Form DD 1354, the UFC 1-300-08 “Criteria for Transfer and Acceptance of Military Real Property” must be adhered to. Detailed instructions for each section of the DD 1354 can be found on the form, and supplementary guidance is available in Appendices C and D of the UFC. It is crucial to list major items of installed equipment within a facility, along with their individual costs. Ancillary services should also be included, and real property Category Codes for each line item should be agreed upon with the RPAO at the applicable Base.

In conclusion, the DD 1354 is a document of paramount importance in the real property handover process. Its completion signifies ownership, accountability, and funding allocation for the newly constructed or refurbished facility. By following this well-structured procedure, construction projects ensure smooth handovers and secure the necessary resources for future maintenance and improvements, ultimately benefitting both the organization and the end-users.