Overview
This section prescribes the procedures and timelines for the reutilization, transfer, and donation of Government property that is no longer required for its original contract. It establishes a prioritized hierarchy for property redistribution to ensure assets are used efficiently across the Federal government before being considered for disposal or donation.
Key Rules
- Disposition Timelines: Plant clearance officers (PLCOs) must review inventory disposal schedules within 10 days of receipt and provide final disposition instructions within 120 days to avoid potential contractor claims for equitable adjustment.
- Reutilization Hierarchy: Property must be processed through a specific priority sequence: 1) Reuse within the owning agency, 2) Transfer of educational equipment to schools/nonprofits, 3) Reporting to GSA for wider Federal use or donation, and 4) Agency-specific disposal (e.g., hazardous waste or scrap).
- Screening Process: Standard screening lasts 46 days, consisting of a 20-day internal agency review followed by a 26-day GSA-coordinated period for other Federal agencies and donation candidates.
- Contractor Buy-back and Retention: Contractors may request to purchase contractor-acquired property at unit acquisition cost or return items to suppliers for a credit to the contract, provided the PLCO approves before the screening process concludes.
- Cost Responsibility: While the property itself is generally transferred between agencies without reimbursement, the receiving agency is responsible for all costs associated with packing, crating, and transportation.
Practical Implications
- Contractors must ensure the accuracy of Standard Form 1428 (Inventory Disposal Schedule), as any errors can reset the 120-day clock and delay the removal of excess property from their facilities.
- The structured screening periods mean that "getting rid" of Government property is a slow, regulated process; contractors cannot unilaterally dispose of items without formal authorization from the PLCO.