Overview
This section defines the applicability of Subpart 45.6, focusing on the standardized processes for reporting, reusing, and disposing of excess contractor inventory and property involved in government claims.
Key Rules
- Applicability: Applies to contractor inventory that is excess to the requirements of the contract.
- Claims Property: Includes property that serves as the basis for a claim against the Government, specifically citing termination inventory under fixed-price contracts.
- Exclusion - Real Property: Does not apply to the disposal of real property (land or buildings).
- Exclusion - Financing Liens: Does not apply to property where the Government’s interest is limited to a lien or title resulting from liquidated advance, progress, or performance-based payments.
Practical Implications
- Contractors must distinguish between general excess inventory and property held as collateral for financing, as the latter is managed under different regulatory requirements.
- This subpart provides the mandatory roadmap for Plant Clearance Officers and contractors to legally divest of government-owned property at the conclusion of a contract or following a termination for convenience.