Overview
This section prescribes the mandatory use of Standard Form (SF) 1424, Inventory Disposal Report, to document the final disposition of government property and the reconciliation of related financial proceeds.
Key Rules
- Mandatory Reporting: The plant clearance officer must prepare SF 1424 promptly after property disposition and the crediting of any resulting proceeds.
- Accountability for Discrepancies: The report must specifically identify any property that was lost, unaccounted for, or underwent changes in quantity or value after the contractor submitted the initial disposal schedule.
- Distribution Requirements: The completed report is provided to the Administrative Contracting Officer (ACO)—or the Termination Contracting Officer (TCO) in cases of termination inventory—with a mandatory copy sent to the Property Administrator.
Practical Implications
- This process serves as a final audit trail and reconciliation point, ensuring the government’s property records are accurately closed out and that the contractor is held liable for missing or devalued items.
- It facilitates the formal transfer of financial responsibility and administrative oversight from the plant clearance phase back to the contracting officer for final contract closeout.