[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.