(1) Unless otherwise provided in the contract, the proceeds of any sale, purchase, or retention shall be-
(i) Credited to the Government as part of the settlement agreement;
(ii) Credited to the price or cost of the contract;
(iii) Applied as otherwise directed by the contracting officer; or
(iv) Forwarded to the plant clearance officer. The plant clearance officer-
(A) Within two days after receipt will send the proceeds and a DD Form 1131, Cash Collection Voucher, to the designated disbursing officer. Identify on the DD Form 1131 the contractor name and contract number; or
(B) For contractors with an approved scrap procedure, will ensure the proceeds are appropriately applied to an overhead account. The plant clearance officer may assign a representative who, with the assistance of the contract auditor, shall periodically validate that proceeds from sales of production generated scrap are collected and applied to the appropriate account.
(2) Except as prescribed in paragraph (1)(iv)(B) of this subsection, the plant clearance officer will not close the plant clearance case until verification is received that the credit has, in fact, been properly applied.
