45.600 Scope of subpart
Source: FAR 45.600 on acquisition.gov
FAR 45.600 defines which types of contractor inventory are subject to federal reporting, reutilization, and disposal procedures, clarifying both inclusions and exclusions.
Overview
- FAR 45.600 defines the scope of Subpart 45.6, which sets forth the policies and procedures for reporting, reutilizing, and disposing of contractor inventory that is excess to contract requirements or forms the basis of a claim against the Government (such as termination inventory under fixed-price contracts). It clarifies what types of property are covered and specifically excludes real property and property where the Government's interest is solely due to liquidated payments.
Key Rules
- Reporting and Disposal of Excess Contractor Inventory
- Establishes requirements for handling contractor inventory that is no longer needed for contract performance or is related to claims against the Government.
- Exclusions
- Does not apply to real property or to property where the Government's interest is only due to liquidated advance, progress, or performance-based payments.
Responsibilities
- Contracting Officers: Must ensure proper reporting, reutilization, and disposal of excess contractor inventory in accordance with this subpart.
- Contractors: Required to follow procedures for identifying, reporting, and disposing of excess inventory as outlined in the subpart.
- Agencies: Oversee compliance and ensure property is managed according to federal regulations.
Practical Implications
- This section ensures that excess contractor inventory is managed efficiently and in compliance with federal requirements, reducing waste and potential liability.
- Contractors must be aware of what property is covered and the correct procedures for its disposition.
- Misunderstanding the scope can lead to improper disposal or reporting, risking noncompliance.
This subpart establishes policies and procedures for the reporting, reutilization, and disposal of contractor inventory excess to contracts and of property that forms the basis of a claim against the Government (e.g., termination inventory under fixed-price contracts). This subpart does not apply to the disposal of real property or to property for which the Government has a lien or title solely as a result of advance, progress, or performance-based payments that have been liquidated.