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FARS

Section 245.606-5: Instructions for preparing and submitting schedules of contractor inventory.

    (d) General instructions for completing forms.

      (4) The contractor shall use the following codes together with the disposal codes 1 through 9, X, and S (e.g., A1, F7, SS) to indicate the condition of the property-

        A-New, used, repaired, or reconditioned property; serviceable and issuable to all customers without limitations or restrictions; includes material with remaining shelf life of more than six months.

        B-New, used, repaired, or reconditioned property; serviceable and issuable or for its intended purpose but restricted from issue to specific units, activities, or geographical areas because of its limited usefulness or short service-life expectancy; includes material and remaining shelf life of three to six months.

        F-Economically reparable property which requires repair, overhaul or reconditioning; includes reparable items which are radioactively contaminated.

        H-Property which has been determined to be unserviceable and does not meet repair criteria.

        S-Property that has no value except for its basic material content.

    (e) Instructions for completing specific forms.

      (4) Inventory Schedule D (Special Tooling and Special Test Equipment)

(SF 1432).

        (ii) Description. For termination inventory included in a settlement proposal, include cost of inventory acquired for performance of the entire contract in column F1 and cost of inventory acquired solely for the terminated portion of the contract in column F2. Cost of inventory acquired for the entire contract must be prorated between the terminated and nonterminated portions.




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