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Accounting for Parts Fabrication in a Team Partnership

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  • Accounting for Parts Fabrication in a Team Partnership

    At Kick Off this past January, I received a gracious offer from the leader of another team in our area to fabricate parts for us. They have excess machining capacity; both in machines and labor (student team members); we have no machining capability, but are fortunate to have a sponsor who fabricates many of our parts (per R12).

    As we pursue a partnership between our teams, I am wondering how our team would account for any parts which were fabricated by students from another team? Would we include only the material cost on the BOM; treated like Example 5 from this year’s R12?

  • #2
    Re: Accounting for Parts Fabrication in a Team Partnership

    As no one has answered you in all this time, here's my take on this:
    First of all, in my experience, the numbers on the BoM are on the honor system. As such, you should try to follow the spirit of the rules at least as much as the wording. That said, I believe that the wording in the 2015 game manual is pretty clear. Here's R11 (emphasis mine):

    Originally posted by 2015 Game Manual
    R11 The BOM cost of each non-KOP item must be calculated based on the unit fair market value for the material and/or labor, except for labor provided by Team members (including sponsor employees who are members of the team), members of other Teams, event provided Machine Shops and shipping.
    That is, just the materials cost would apply to parts machined by members of another team (presuming you aren't paying them to do the work).
    Last edited by GeeTwo; 02-24-2015, 09:56 PM.

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