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FARS

Section 45.602-1: Inventory Disposal Schedules.

(a) Plant clearance officers should review and accept, or return for correction, inventory disposal schedules within 10 days following receipt from a contractor. Schedules that are completed in accordance with the instructions for Standard Form 1428 should be accepted.

(b) Plant clearance officers shall -

    (1) Use Standard Form 1423 to verify, in accordance with agency procedures, accepted schedules within 20 days following acceptance;

    (2) Require a contractor to correct any discrepancies found during verification;

    (3) Require a contractor to correct any failure to complete predisposal requirements of the contract; and

    (4) Provide the contractor disposition instructions for property identified on an acceptable inventory disposal schedule within 120 days. A failure to provide timely disposition instructions might entitle the contractor to an equitable adjustment.

(c) Contractors shall obtain the plant clearance officer’s approval to remove Government property from an inventory disposal schedule.

    (1) Plant clearance officers should approve removal when -

      (i) The contractor wishes to purchase a contractor-acquired or contractor-produced item at acquisition cost and credit the contract;

      (ii) The contractor is able to return unused property to the supplier at fair market value and credit the contract (less, if applicable, a reasonable restocking fee that is consistent with the supplier’s customary practices);

      (iii) The Government has authorized the contractor to use the property on another Government contract; or

      (iv) The contractor has requested continued use of Government property, and the plant clearance officer has consulted with the appropriate program and technical personnel.

    (2) If the screening process (see 45.602-3) has not begun, the plant clearance officer shall adjust the schedule or return the schedule to the contractor for correction. If screening has begun, the plant clearance officer shall promptly notify the activity performing the screening that the items should be removed from the screening process.




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