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   <concept id="DFARS_PGI_245.602-70"
            outputclass="4"
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            class="- topic/topic concept/concept ">
      <title class="- topic/title ">
         <ph props="autonumber" class="- topic/ph ">PGI 245.602-70</ph> Plant clearance procedures.</title>
      <conbody class="- topic/body  concept/conbody ">
         <p class="- topic/p " outputclass="List2">(1) Upon receipt of acceptable
inventory schedules, the plant clearance officer (PLCO) shall assign
a plant clearance case number using DD Form 1635 (or an automated
equivalent) and establish a case file.</p>
         <p class="- topic/p " outputclass="List2">(2) The plant clearance case number shall
be established using a three-part, 11-character number as follows:</p>
         <p class="- topic/p " outputclass="List3">(i) Part 1: DoD Activity Address Code (six-character
alphanumeric code) assigned to the contract administration activity.</p>
         <p class="- topic/p " outputclass="List3">(ii) Part 2: Locally assigned four-character
consecutive alphanumeric code, beginning each calendar year with
“001” continuing as necessary through “zzz.” The fourth character
is the last digit of the calendar year, e.g., “0013” for the first
case of calendar year 2003.</p>
         <p class="- topic/p " outputclass="List3">(iii) Part 3: The 11th character is a single
letter identifying the department or agency:</p>
         <p class="- topic/p ">C-Army</p>
         <p class="- topic/p ">Q-Navy</p>
         <p class="- topic/p ">E-Air Force</p>
         <p class="- topic/p ">L-Marine Corps</p>
         <p class="- topic/p ">U-Defense Logistics Agency</p>
         <p class="- topic/p ">N-<i class="+ topic/ph hi-d/i ">Defense</i> Threat Reduction Agency</p>
         <p class="- topic/p ">M-National Geospatial-Intelligence Agency</p>
         <p class="- topic/p ">S-NASA</p>
         <p class="- topic/p ">D-Other DoD activities</p>
         <p class="- topic/p ">O-Non-DoD activities</p>
         <p class="- topic/p " outputclass="List2">(3) The case file shall contain copies
of all documents relevant to the case, e.g., correspondence, review
board findings, anti-trust clearances, and reports.</p>
         <p class="- topic/p " outputclass="List2">(4) PLCOs will use DD Form 1638, Report
of Disposition of Contractor Inventory, or an automated equivalent
to report the disposition of contractor inventory. Do not include
disposition actions transferred to other offices. Complete only the
column total for each line of this report. The report is self-explanatory
except—</p>
         <p class="- topic/p " outputclass="List3">(i) Line 1–insert totals from line 7 of
the preceding report;</p>
         <p class="- topic/p " outputclass="List3">(ii) Line 2–insert net changes due to shortages,
overages, errors, or withdrawals (other than purchases or retention
at cost);</p>
         <p class="- topic/p " outputclass="List3">(iii) Line 3–insert total excess inventory
reported by contractors during the report period;</p>
         <p class="- topic/p " outputclass="List3">(iv) Line 5–insert total plant clearance
cases completed during the report period. Do not report cases as
completed until all property has been disposed. Acquisition cost
must equal line 19;</p>
         <p class="- topic/p " outputclass="List3">(v) Line 8–insert amount retained or withdrawn
at full cost;</p>
         <p class="- topic/p " outputclass="List3">(vi) Line 9–insert acquisition cost in
the “Acquisition Cost” column and insert acquisition cost less handling,
transportation, or restocking charges, in the “Proceeds” column;</p>
         <p class="- topic/p " outputclass="List3">(vii) 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;</p>
         <p class="- topic/p " outputclass="List3">(viii) Line 12–insert the acquisition cost
and gross proceeds;</p>
         <p class="- topic/p " outputclass="List3">(ix) Lines 14 and 15–used to identify and
report other transactions, and</p>
         <p class="- topic/p " outputclass="List3">(x) Line 18–insert section II totals. Line
18 acquisition cost must equal acquisition cost on line 5.</p>
         <p class="- topic/p " outputclass="List2">(5) The PLCO will 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 10 working
days after the close of the report period (Report Control Symbol
DD(I&amp;L)(Q)1430 applies).</p>
         <p class="- topic/p " outputclass="List2">(6) Upon completion of the plant clearance
action, the PLCO shall prepare a Standard Form 1424, Inventory Disposal Report.
The form is self-explanatory except–</p>
         <p class="- topic/p " outputclass="List3">(i) Item 12–insert net change due to shortages,
overages, errors, pricing, or withdrawals, etc. Explain in item
18, Remarks;</p>
         <p class="- topic/p " outputclass="List3">(ii) Item 14–insert amount contractor is
retaining or purchasing at acquisition cost;</p>
         <p class="- topic/p " outputclass="List3">(iii) Item 15–insert acquisition cost and
net credit (full credit less approved handling, transportation,
and restocking charges for items returned to supplier);</p>
         <p class="- topic/p " outputclass="List3">(iv) Item 16–insert the acquisition cost
for all transfers accomplished. For lines 16A and 16B, insert subtotals
as indicated;</p>
         <p class="- topic/p " outputclass="List3">(v) Item 18–insert acquisition cost and
gross proceeds;</p>
         <p class="- topic/p " outputclass="List3">(vi) Items 20 and 21–use to identify and
report transactions not otherwise identified, such as items shipped
to a Government precious metals reclamation activity, etc. Further
explanation may be provided in item 26, Remarks, if necessary;</p>
         <p class="- topic/p " outputclass="List3">(vii) 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; and</p>
         <p class="- topic/p " outputclass="List3">(viii) Item 27–total dispositions must
equal the amounts on line 13, and must reflect all disposal actions
within the case.</p>
         <p class="- topic/p " outputclass="List2">(7) When contractor inventory with an estimated
fair market value of $3 million or more, or any patents, processes,
techniques, or inventions, regardless of cost, are sold or otherwise
disposed of to private interests, notify the Attorney General and
the General Services Administration (GSA) of the proposed terms
and conditions of disposal. Submit the following information to
the Department of Justice and GSA through contract administration
agency channels (Report Control Symbol DD-ACQ(AR)1492 applies):</p>
         <p class="- topic/p " outputclass="List3">(i) Location and description of property
(specify tonnage if scrap).</p>
         <p class="- topic/p " outputclass="List3">(ii) Proposed sale price (explain if the
proposed purchaser was not highest bidder).</p>
         <p class="- topic/p " outputclass="List3">(iii) Acquisition cost of property.</p>
         <p class="- topic/p " outputclass="List3">(iv) Manner of sale, indicating whether
by—</p>
         <p class="- topic/p " outputclass="List4">(A) Sealed bid (specify number of bidders
solicited and bids received);</p>
         <p class="- topic/p " outputclass="List4">(B) Auction or spot bid (state how sale
was advertised);</p>
         <p class="- topic/p " outputclass="List4">(C) Negotiation (explain why property was
not sold competitively);</p>
         <p class="- topic/p " outputclass="List4">(D) Proposed purchaser's name, address,
and trade name (if any) under which proposed purchaser is doing
business;</p>
         <p class="- topic/p " outputclass="List4">(E) If a corporation, provide state and
date of incorporation, and name and address of—</p>
         <p class="- topic/p " outputclass="List6">(<i class="+ topic/ph hi-d/i ">1</i>) Each holder of 25 percent or
more of the corporate stock;</p>
         <p class="- topic/p " outputclass="List6">(<i class="+ topic/ph hi-d/i ">2</i>) Each subsidiary; and</p>
         <p class="- topic/p " outputclass="List6">(<i class="+ topic/ph hi-d/i ">3</i>) Each company under common control
with proposed purchaser.</p>
         <p class="- topic/p " outputclass="List6">(<i class="+ topic/ph hi-d/i ">4</i>) If a partnership, provide—</p>
         <p outputclass="List5" class="- topic/p ">
            <i class="+ topic/ph hi-d/i ">(a)</i> Name and address of each partner;
and</p>
         <p outputclass="List5" class="- topic/p ">
            <i class="+ topic/ph hi-d/i ">(b)</i> Other business connections of
each partner;</p>
         <p outputclass="List5" class="- topic/p ">
            <i class="+ topic/ph hi-d/i ">(c)</i> Nature of proposed purchaser's
business (indicate whether its scope is local, statewide, regional,
or national);</p>
         <p outputclass="List5" class="- topic/p ">
            <i class="+ topic/ph hi-d/i ">(d)</i> Estimated dollar volume of sales
of proposed purchaser (as of latest calendar or fiscal year);</p>
         <p outputclass="List5" class="- topic/p ">
            <i class="+ topic/ph hi-d/i ">(e)</i> Estimated net worth of proposed
purchaser; and</p>
         <p outputclass="List5" class="- topic/p ">
            <i class="+ topic/ph hi-d/i ">(f)</i> Intended use of property.</p>
         <p class="- topic/p " outputclass="List2">(8) Do not dispose of property until the
Attorney General determines whether the proposed disposal action
would tend to create or maintain a situation inconsistent with the
antitrust laws.</p>
         <p class="- topic/p " outputclass="List2">(9) If the Attorney General advises that
the proposed disposition is inconsistent with the antitrust laws,
do not continue with the proposed disposition.</p>
         <p class="- topic/p " outputclass="List2">(10) Under noncompetitive sales, the prospective
purchaser shall be informed that final consummation of the sale
is subject to determination by the Attorney General.</p>
         <p class="- topic/p " outputclass="List2">(11) The disposal of contractor inventory
is the responsibility of the contractor. However, the disposal/sales
services of the Defense Logistics Agency (DLA) Disposition Services
or a Federal agency, e.g., GSA, may be used in unusual or compelling
circumstances, as determined by the contracting officer to be in
the best interest of the Government, and provided DLA Disposition
Services/the agency agrees. In such cases, disposal/sales services
may be provided on a reimbursable basis, with any sale proceeds
credited in compliance with FAR
45.604-4, Proceeds from sales of surplus property. If sale
services are needed, the plant clearance officer will document the
reasons in the case file and make arrangements directly with DLA
Disposition Services, GSA, other Federal agency, or third-party.
The arrangements will include a requirement to return all proceeds
to the plant clearance officer for crediting in compliance with FAR 45.604-4.</p>
         <p class="- topic/p " outputclass="List2">(12) The PLCO shall, prior to sales contract
award—</p>
         <p class="- topic/p " outputclass="List3" id="i1348373">(i) Ensure the prospective
buyer is not an ineligible transferee, including those on found
in the System for Award Management (SAM) Exclusions. For additional
information see https://www.acquisition.gov;</p>
         <p class="- topic/p " outputclass="List3">(ii) Cross-reference contractor inventory
to a National Stock Number and Demilitarization code. For additional
information, see FED LOG or WEBFLIS at http://www.dlis.dla.mil/webflis/
and the current edition of the DoD Demilitarization Manual at http://www.dtic.mil/whs/directives;</p>
         <p class="- topic/p " outputclass="List3">(iii) Consult with the DoD Demilitarization
(Demil)/Trade Security Control (TSC) Program office to determine
if the contractor inventory can be sold to the public; and if a
TSC assessment of the prospective buyer is required. Reference DoD
Instruction 2030.08, Implementation of Trade Security Controls (TSC)
for Transfers of DoD U.S. Munitions List (USML) and Commerce Control
List (CCL) Personal Property to Parties Outside DoD Control; and Defense
Demilitarization Manual, DoD 4160.28-M;</p>
         <p class="- topic/p " outputclass="List3">(iv) If TSC is required, provide the DoD
Demil/TSC Program office with a completed DLA Form 1822 End-Use
Certificate (EUC) for the prospective buyer. Note: TSC assessments/EUCs
are typically not required for scrap sales; and</p>
         <p class="- topic/p " outputclass="List3">(v) Upon TSC clearance (if required) of
the prospective buyer, authorize the contractor to complete the
sale, as applicable.</p>
         <p class="- topic/p " outputclass="List2">(13) To the extent that demilitarization,
mutilation, or destruction is required, the PLCO may authorize the
contractor to perform such action as follows:</p>
         <p class="- topic/p " outputclass="List3">(i) Demilitarization, mutilation, or destruction
by the contractor or buyer as a condition of sale;</p>
         <p class="- topic/p " outputclass="List3">(ii) Shipment to a DoD disposal activity
(contingent upon packing, crating, handling, and transportation
funding), or</p>
         <p class="- topic/p " outputclass="List3">(iii) Such other actions as are included
in the terms and conditions of the contract.</p>
         <p class="- topic/p "> (14) The PLCO shall use the DD Form
            1641, Disposal Determination Approval, or electronic equivalent to
            record the rationale for the following disposal determinations: </p>
         <p class="- topic/p " outputclass="List3">  (i) Downgrade useable property to
            scrap. </p>
         <p class="- topic/p " outputclass="List3">  (ii) Abandonment or destruction. </p>
         <p class="- topic/p " outputclass="List3">  (iii) Noncompetitive sale of
            surplus property. </p>
         <p class="- topic/p " outputclass="List3">  (iv) Other disposal actions. </p>
         <p class="- topic/p " outputclass="List2">(15) The PCLO shall use the SF 97,
            Certificate of Release of a Motor Vehicle (Agency Record Copy) for
            transfers, donations, and sales of motor vehicles and furnish a copy
            to the purchaser. </p>
         <p class="- topic/p " outputclass="List2">(16) Security assistance
            transfers or foreign military sales shall be conducted in accordance
            with the terms and conditions of the contract and consistent with
            DoD 5105.38-M Security Assistance Management Manual.</p>
         <p class="- topic/p " outputclass="List2">(17) The plant clearance officer
            may send a notice of proposed surplus sale to (
               <xref href="http://www.sam.gov" format="html" scope="external">http://www.sam.gov</xref>
            ) if the items have
            potentially high public interest.</p>
      </conbody>
   </concept>
</dita>
