45.603 Abandonment or destruction of personal property
Source: FAR 45.603 on acquisition.gov
FAR 45.603 sets strict procedures and approval requirements for abandoning, destroying, or donating contractor inventory to ensure compliance, safety, and cost-effectiveness.
Overview
FAR 45.603 outlines the procedures for the abandonment or destruction of contractor inventory (personal property) that cannot be reutilized, transferred, or sold. It establishes when and how plant clearance officers or authorized officials may direct destruction, abandonment, or donation of such property, ensuring compliance with federal regulations and public safety considerations.
Key Rules
- Direct Destruction or Abandonment
- If property has no commercial value, does not require demilitarization, and poses no public danger, officials may direct destruction or abandonment without further approval.
- Sensitive Property
- Sensitive property may only be abandoned with contractor consent.
- Higher-Level Approval
- For other property, abandonment or destruction requires approval from a higher-level government official and must meet specific criteria (e.g., no value, not sensitive, costs of care exceed sale proceeds).
- Donation Option
- Non-sensitive, non-dangerous property may be donated to public bodies instead of being abandoned or destroyed, with no government cost for donation.
- Public Notice Requirement
- Unless exempted, public notice must be given before abandonment or destruction, per federal regulations.
Responsibilities
- Contracting Officers: Ensure proper screening, approvals, and compliance with notice requirements.
- Contractors: Comply with directions for destruction, abandonment, or donation; provide consent for sensitive property abandonment.
- Agencies: Oversee approvals, ensure public notice, and follow FMR guidelines.
Practical Implications
- Ensures property is disposed of responsibly and cost-effectively.
- Prevents improper abandonment or destruction of valuable or sensitive items.
- Requires careful documentation and adherence to approval and notice processes.
(a) When contractor inventory is processed through the reutilization screening process prescribed in 45.602-2 without success, and provided the property has no commercial value, does not require demilitarization, and does not constitute a danger to public health or welfare, plant clearance officers or other authorized officials may without further approval-
(1) Direct the contractor to destroy the property;
(2) Abandon non-sensitive property at the contractor’s or subcontractor’s premises; or
(3) Abandon sensitive property at the contractor’s or subcontractor’s premises, with contractor consent.
(b) Provided a Government reviewing official at least one level higher than the plant clearance officer or other agency authorized official approves, plant clearance officers or other agency authorized officials may authorize the abandonment, or order the destruction of other contractor inventory at the contractor’s or subcontractor’s premises, in accordance with FMR 102-36.305 through 325 (41 CFR 102-36.305-325) and consistent with the following:
(1) The property is not considered sensitive, does not require demilitarization, has no commercial value or reutilization, transfer or donation potential, and does not constitute a danger to public health or welfare.
(2) The estimated cost of continued care and handling of the property (including advertising, storage and other costs associated with making the sale), exceed the estimated proceeds from its sale.
(c) In lieu of abandonment or its authorized destruction, the plant clearance officer or authorized official may authorize the donation of property including unsold surplus property to public bodies, provided that the property is not sensitive property, does not require demilitarization, and it does not constitute a danger to public health or welfare. The Government will not bear any of the costs incident to such donations.
(d) Unless the property qualifies for one of the exceptions under FMR 102-36.330 (41 CFR 102-36.330), the plant clearance officer or requesting official will ensure prior public notice of such actions of abandonment or destruction consistent with FMR 102-36.325 (41 CFR 102-36.325).