subpart 245.72--special instructions

(Revised September 21, 1999)

 

 

 245.7201 Performing inventory verifications and determination of allocability.
 245.7202 Establishing a plant clearance case.
 245.7203 Assigning plant clearance case numbers.
 245.7204 Preparing inventory disposal report.
 245.7205 Reporting excess and surplus contractor inventory.
 245.7206 Transmitting DD Form 1342, DoD Property Record.


245.7201  Performing inventory verifications 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.

 

245.7202  Establishing a plant clearance case.

 

      (a)  Upon receipt of an acceptable inventory schedule or a DD Form 1342, DoD Property Record, the plant clearance officer shall establish a plant clearance case file.  The case folder will—

 

              (1)  Identify the case number (see 245.7203);

 

              (2)  Indicate the contractor's name and contract number;

 

              (3)  Note the word “Termination” if applicable; and

 

              (4)  Consolidate all inventory schedules applicable to one contract at the same location, if possible.

 

      (b)  As a minimum, include in the plant clearance case file—

 

              (1)  Inventory schedules or DD Form 1342, DoD Property Record, annotated to show all disposal actions;

 

              (2)  Copies of documents forwarding inventory schedules to the appropriate screening activity;

 

              (3)  Shipping or other instructions and correspondence directing disposition of contractor inventory;

 

              (4)  Shipping documents transferring inventory;

 

              (5)  Inventory verification survey or other documents showing completion of allocability review;

 

              (6)  Forms authorizing donation or sale;

 

              (7)  Document showing disposition of proceeds from plant clearance actions; and

 

              (8)  Any other documents pertinent to disposal actions, including review board cases, antitrust clearances, and inventory disposal reports.

 

245.7203  Assigning plant clearance case numbers.

 

      (a)  Use a three-part, 11-character number constructed as follows:

 

              (1)  Part 1:  DoD Activity Address Number (6-character alphanumeric code) assigned to the contract administering activity.

 

              (2)  Part 2:  Locally assigned 4-character consecutive alphanumeric code, beginning each calendar year with 001 continuing as necessary through ZZZ.  The fourth digit is the last number of the calendar year.

 

              (3)  Part 3:  The 11th character is a single letter identifying the department/agency:

 

C--Army Q--Navy E--Air Force L--Marine Corps U--Defense Logistics Agency N--Defense Nuclear Agency M--National Imagery and         Mapping Agency S--NASA D--Other DoD Activities O--Non-DoD Activities

 

      (b)  Record the plant clearance number on DD Form 1635, Plant Clearance Case Register, or mechanized equivalent.

 

245.7204 Preparing inventory disposal report.

 

      (a)  Prepare Standard Form 1424, Inventory Disposal Report, for each completed plant clearance case.  For terminated contracts, prepare a consolidated Inventory Disposal Report for each termination docket.

 

      (b)  Distribute the report to the contracting officer and to any other activities having an interest in the inventory disposal.

 

      (c)  Items on the form are self-explanatory except:

 

              (1)  Item 12--Insert net change due to shortages, overages, errors, pricing, or withdrawals, etc.  Explain in item 16, Remarks.

 

              (2)  Item 14--Insert amount contractor is retaining or purchasing at full acquisition cost (see FAR 45.605-1).

 

              (3)  Item 15--Insert acquisition cost and net credit (full credit less approved handling, transportation, and restocking charges for items returned to supplier).

 

              (4)  Item 16--Insert the acquisition cost for all transfers accomplished.  For lines 16A and 16B, insert subtotals as indicated.

 

              (5)  Item 18--Insert acquisition cost and gross proceeds.  When approved sale costs are reimbursed from proceeds, show net proceeds in Item 26, Remarks.

 

              (6)  Items 20 and 21--Use to identify and report transactions not otherwise identified, such as assets shipped to a Government precious metals reclamation activity, etc.  Further explanation may be provided in Item 26, Remarks, if necessary.

 

              (7)  Item 25--Totals dispositions must equal amounts on line 13 and must reflect all disposal actions within the case.

 

              (8)  Item 26--Show the specific disposition of proceeds reported in Items 14, 15, and 18.  Also indicate amounts deleted for specific contractor claims, or applied as a credit to the claim.  Explain any entry requiring explanation.

 

245.7205  Reporting excess and surplus contractor inventory.

 

      (a)  Contract administration offices with plant clearance responsibilities will—

 

              (1)  Use DD Form 1638, Report of Excess and Surplus Contractor Inventory, or mechanized equivalent, to report the disposition of contractor inventory.  Do not include disposition actions transferred to other offices.  Unless headquarters of the administering activity directs otherwise, complete only the column total for each line of this report.

 

              (2)  Prepare quarterly reports for periods ending March 31, June 30, September 30, and December 31.  Activities preparing manual reports will submit duplicate reports to the headquarters of the administering activity within ten working days after the close of the report period. (Report Control Symbol DD(I&L)(Q)1430).

 

      (b)  Items on the report are self-explanatory except:

 

              (1)  Line 1--Insert totals from line 7 of the preceding report.

 

              (2)  Line 2--Insert net changes due to shortages, overages, errors, or withdrawals (other than purchases or retention at cost).

 

              (3)  Line 3--Insert total excess inventory reported by contractors during the report period.

 

              (4)  Line 5--Insert total plant clearance cases completed during the report period.  Do not report cases as completed until all property is disposed.  Acquisition cost must equal line 19.

     

              (5)  Line 8--Insert amount retained or withdrawn at full cost.

 

              (6)  Line 9--Insert acquisition cost in the “Acquisition Cost” column and insert acquisition cost less handling, transportation, or restocking charges, in the “Proceeds” column.

 

              (7)  Line 10--Insert acquisition cost of all transfers completed during the report period.  On lines 10A through 10H, insert subtotals representing transfers to the agency indicated.  Exclude amounts on lines 10A through 10H when computing line 19 totals.

 

              (8)  Line 12--Insert the acquisition cost and gross proceeds.  When sale costs are reimbursed from proceeds, show net proceeds in remarks.

 

              (9)  Lines 14 and 15--Used to identify and report other transactions.

 

              (10)  Line 18--Insert Section II totals.  Line 18 acquisition cost must equal acquisition cost on line 5.

 

245.7206  Transmitting DD Form 1342, DoD Property Record.

As a minimum, the plant clearance officer will provide the following information in a letter forwarding DD Forms 1342 to Defense Supply Center Richmond (DSCR)—

 

      (a)  Number of DD Forms 1342 included;

 

      (b)  Automatic release date;

 

      (c)  Screening complete date;

 

      (d)  Contractor's name and address;

 

      (e)  Contract number;

 

      (f)  Contracting activity that awarded the contract under which the contractor acquired the equipment;

 

      (g)  Location of the industrial plant equipment;

 

      (h)  Total acquisition cost;

 

      (i)  A statement advising that the automatic release date will not be extended;

 

      (j)  A note stating that—

 

              (1)  Request for transfer or shipment must include appropriate fund citations for packing, crating, and handling charges; and

 

              (2)  Government bills of landing (GBLs) should be furnished or, if shipment will be accomplished by other than GBL, DSCR must cite transportation funds; and

 

      (k)  The plant clearance officer's signature block.