[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: 48CFR245.7201]

[Page 345]
 
            TITLE 48--FEDERAL ACQUISITION REGULATIONS SYSTEM
 
                    CHAPTER 2--DEPARTMENT OF DEFENSE
 
PART 245--GOVERNMENT PROPERTY--Table of Contents
 
                  Subpart 245.72--Special Instructions
 
Sec. 245.7201  Performing inventory verification and determination of allocability.


    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.