How to Complete and Submit DD Form 1354: Draft to Final and CIP Relief

DD Form 1354, “Transfer and Acceptance of DoD Real Property,” is the document the Department of Defense uses to record a building, structure, land improvement, or land parcel entering or moving within the military’s real property inventory. The construction agent (usually the Army Corps of Engineers or Naval Facilities Engineering Systems Command) prepares it when a project is ready for use, and the receiving installation’s Real Property Accountable Officer signs to accept the asset.¹ The signed form is what moves project costs off the Construction in Progress ledger and onto the real property books, starts depreciation, and shifts maintenance responsibility to the user.

When You Need One

The form is required whenever the DoD acquires, constructs, transfers, or makes a capital improvement to real property. New construction is the most common trigger. Renovations that add square footage, change a facility’s function, or otherwise increase its recorded value also require one, and intra-DoD transfers between military departments need a DD Form 1354 to document the change in accountability.²

DoDI 4165.14 identifies the DD Form 1354 as the acceptance document feeding each component’s accountable property system of record.³ The step-by-step procedures for preparing and processing it are in UFC 1-300-08, “Criteria for Transfer and Acceptance of DoD Real Property,” which is the reference to have open while you work.

Draft, Interim, and Final Versions

Every DD Form 1354 is marked as one of three versions, and each corresponds to a different stage of the project.¹

The Draft version is prepared before construction begins by the installation’s Real Property Accountable Officer. It establishes the planned asset in the inventory system and gives the contractor a reference for what will eventually be accepted.

The Interim version is issued when the project is substantially complete and the user takes beneficial occupancy, meaning the building can be used even though minor punch-list items remain. The placed-in-service date on the interim form starts depreciation and shifts liability to the government. Costs on the interim version are preliminary because final invoices and contract settlements are still outstanding.²

The Final version is prepared only after all construction is physically complete, every contract requirement has been met, and final costs are known. There is only one final DD Form 1354 per project. It distributes any unallocated costs across the assets and marks the financial closeout of the Construction in Progress account.⁴ The office that prepared the interim version must keep a suspense file and send the RPAO an updated form showing final total costs once the project is financially closed out. Final costs often lag physical completion by several months, and when legal claims are involved, the wait can run to a year or more.⁵

Where to Get the Blank Form

The blank DD Form 1354 is available from the Executive Services Directorate on the Washington Headquarters Services site under DD Forms 1000–1499.⁶ Most installations also keep copies on local portals or inside their accountable property systems. In practice, the form is usually generated from the system of record rather than filled out on a standalone PDF, but the blank version and its instructions are useful references for understanding what each block requires.

Completing the Key Blocks

The form has 28 blocks. Block numbers matter, because reviewers and auditors reference them directly, so getting each piece of data into the correct box is the baseline requirement.² The blocks below are the ones that most often need attention.

Identification and Project Data

Block 1 (From): the name of the DoD Component preparing the form, such as “U.S. Army Corps of Engineers, Fort Worth District.” This is not the project number, a common early mistake.
Block 2 (Date Prepared): the actual date the form was completed.
Block 3 (Project/Job Number): the project number from the DD Form 1391 (military construction project data sheet) or the individual job order number.
Block 7 (Contract Number): the contract under which the work was performed.
Block 7a (RPA Placed-in-Service Date): the calendar date the asset is available and accepted for use. This starts the depreciation clock and matches the beneficial occupancy date on the interim form.

Asset Identification

Block 10a (Facility Number): the installation-assigned number for the facility.
Block 10b (RPUID): the Real Property Unique Identifier, a non-intelligent code permanently assigned to each asset. Once assigned, an RPUID is never reused.⁷
Block 11 (Category Code): a five- or six-digit code that identifies the type of facility, such as fixed-wing runway, aircraft maintenance hangar, or administrative building. Each military department maintains five-digit codes that map to a common Office of the Secretary of Defense code for department-wide reporting.⁸

Quantity and Measurement

Block 15 (Unit of Measure Accountability): the primary unit for measuring the asset, such as square feet for a building, linear feet for a fence, or acres for land.
Block 16 (Quantity): the total in that unit.
Block 17 (Unit of Measure Operational): a secondary measurement tied to capacity or configuration, such as beds in a barracks or gallons per day for a water treatment plant.
Block 18 (Quantity): the operational quantity.¹

Cost Data

Block 19 captures the cost of each line item. Whatever goes there is what shows up on the agency’s balance sheet, so accuracy carries real financial weight. Direct construction costs (base contract price for materials and labor) make up the bulk of the figure. The construction agent adds Supervision, Inspection, and Overhead (SIOH) charges, which cover the agent’s cost of managing the project. For military construction, SIOH runs approximately 5.7 percent for work in the continental United States. Overseas rates are higher, roughly 6.2 percent for NAVFAC and up to 6.5 percent for USACE. The exact rate depends on the construction agent and the project location. Design costs are included in the total capitalized value when directly attributable to the project.

Supporting Documentation

A DD Form 1354 standing alone is not enough for an auditor. It must be backed by records that prove the asset exists, was properly valued, and matches what was authorized. Typical attachments include:

Engineering as-built drawings showing the facility as actually constructed
Final cost reports and contract settlement documents
The DD Form 1391 that authorized the project
Inspection reports and beneficial occupancy certificates
Real estate instruments such as deeds, lease agreements, or easements when acquired land is involved

DoDI 4165.14 requires hard or electronic copies of original documents supporting every entry in the accountable property system of record.³ Weak documentation is a recurring finding in DoD real property audits, so assembling the package before submission saves rework later.

Signing and Submitting

The construction agent or project manager completes the form and signs Block 24 (Statement of Completion) as the transferor, certifying that the work is complete and ready for use. The form then goes to the receiving installation’s Real Property Accountable Officer, who reviews it for completeness and accuracy. The RPAO checks that category codes, measurements, and costs are consistent with the project authorization and existing inventory records.²

The RPAO signs Block 25 (Accepted By) to formalize acceptance. Signatures may be applied electronically or manually. Once signed, the form should not be updated unless both the transferring and accepting officials re-sign the revised version.⁵ Each military service sets its own timeline for processing acceptance into the system of record, so check service-specific guidance for expected turnaround.

After Acceptance: CIP Relief and Depreciation

The signed DD Form 1354 is the event that moves money from the Construction in Progress account to the real property account in the financial system. CIP costs must be relieved in the same period that the individual asset is posted to the appropriate real property account with its RPUID.⁹

Depreciation begins based on the placed-in-service date recorded in Block 7a, whether or not the facility is actually being used yet. The DoD Financial Management Regulation prescribes the Month Available for Service method: the month the asset became available for use is the starting point for depreciation expense in the first year.⁹ From that date, the installation assumes full operational control and maintenance responsibility.

Additional costs incurred after the placed-in-service date but before final contract closeout accumulate in the funding component’s CIP account. When the final DD Form 1354 is issued, those remaining costs are transferred to adjust the asset’s recorded value. The final form reflects total costs, not just the difference between interim and final, so the RPAO’s records show the complete capitalized value in one place.⁵

1
Department of Defense (DoD). Transfer and Acceptance of DoD Real Property
2
Whole Building Design Guide. UFC 1-300-08 – Criteria for Transfer and Acceptance of DoD Real Property
3
Department of Defense. DoDI 4165.14 Real Property Inventory and Reporting
4
U.S. Army Corps of Engineers. Close Out RMS Training
5
Whole Building Design Guide. UFS 1-300-08 – Criteria for Transfer and Acceptance of DoD Real Property
6
Department of Defense. DD Forms 1000-1499
7
DoD Procurement Toolbox. Real Property Unique Identifier (RPUID)
8
Department of Defense. DoDI 4165.03 DoD Real Property Categorization
9
Department of Defense. DoD 7000.14-R Financial Management Regulation Volume 4, Chapter 24