Use the following guidance for verifying inventory schedules-
(a) Allocability.
(1) Review contract requirements, delivery schedules, bills of material, and other pertinent material. Determine whether schedules include material which-
(i) Is more than required or reasonably expected to be required for completion of the contract; or
(ii) Might be usable on the current contract, or diverted to other commercial work or Government use.
(2) Review the contractor's-
(i) Recent purchases of similar material;
(ii) Plans for current and scheduled production;
(iii) Stock record entries; and
(iv) Bills of material for similar items.
(b) Quantity. Ensure available inventory is in accordance with quantities listed on the inventory schedules. While a complete physical count of each item is not required, perform sufficient checks to ensure accurate quantities.
(c) Condition. Ensure the inventory condition matches that shown on the inventory schedules.
