The contracting officer shall obtain approval of an authorized representative of the requiring activity before transferring property between contracts.

(S-90) When the use of FAR clause 52.245-1, Government Property, is required, the contracting officer shall complete Annex 9, Government-Furnished Property Preaward Compliance Checklist, with the Business Clearance Memorandum (BCM).

(a) To accomplish the screening requirements within prescribed time periods, the following procedures shall be employed:

(S-90)(1) Upon receipt of inventory schedules in acceptable form, the plant clearance office should provide an original to the requiring activity and copies to DON inventory managers, the contracting activity, and Naval activities other than inventory managers who have potential requirements for the property.

(2) Provide retention and redistribution requirements of the owning Commands, Offices and Bureaus (requiring activities), inventory managers, contracting activities and other Naval activities directly to the reporting office during this period.

(b) The final approval for contractor retention of standard components of special test equipment (STE) or for the transfer of industrial plant equipment items that are components of STE, shall be made by the contracting officer in lieu of the ACO.

(c) Prior to authorizing retention of items in storage the contracting officer shall ensure that a retention plan has been developed. Retention plans shall include the justification for storage, a detailed description of the property to be stored, storage costs, location, planned period of storage, and source of funds for storage. The use of "nocosts" or no direct cost storage agreements is prohibited.