Overview
FAR 45.603 establishes the procedures and criteria for the final disposal of government-owned contractor inventory that has failed the reutilization screening process or is deemed uneconomical to sell. It empowers Plant Clearance Officers (PLCOs) to authorize the abandonment, destruction, or donation of such property provided specific safety, security, and value conditions are met.
Key Rules
- Standard Authorization: PLCOs may independently direct destruction or abandonment if the property has no commercial value, requires no demilitarization, is not a public danger, and has failed the standard screening process.
- Consent for Sensitive Property: While non-sensitive property can be abandoned unilaterally, the abandonment of sensitive property on a contractor’s premises requires the contractor's explicit consent.
- Economic Justification: For property not covered under standard authorization, abandonment or destruction may be authorized if a higher-level official approves and the estimated cost of continued care and handling exceeds the potential sale proceeds.
- Donation Alternative: In lieu of destruction, the government may authorize the donation of non-sensitive, non-dangerous property to public bodies, provided the government bears no costs for the donation.
- Public Notice: Unless specific regulatory exceptions apply, the government must provide prior public notice before proceeding with abandonment or destruction.
Practical Implications
- Storage Relief: This section provides a legal mechanism for contractors to clear their facilities of low-value or valueless government property that would otherwise occupy space indefinitely.
- Compliance Burden: Contractors must ensure they do not dispose of property until they receive formal direction from the PLCO, as unauthorized disposal could lead to liability for the property's value.