[Code of Federal Regulations]
[Title 48, Volume 3]
[Revised as of October 1, 2002]
From the U.S. Government Printing Office via GPO Access
[CITE: 48CFR245.610-3]

[Page 343]
 
            TITLE 48--FEDERAL ACQUISITION REGULATIONS SYSTEM
 
                    CHAPTER 2--DEPARTMENT OF DEFENSE
 
PART 245--GOVERNMENT PROPERTY--Table of Contents
 
  Subpart 245.6--Reporting, Redistribution, and Disposal of Contractor 
                                Inventory
 
Sec. 245.610-3  Proceeds of sale.

    (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.