Overview
FAR 45.606 outlines the requirements for documenting and executing contractor scrap disposal processes, ensuring they are efficient and properly overseen by Government officials. It specifically focuses on the segregation of high-risk or high-value scrap and establishes the Government's right to abandon parts replaced during maintenance.
Key Rules
- Documentation and Oversight: The Property Administrator (PA), in coordination with the Plant Clearance Officer (PLCO), must ensure the contractor’s scrap disposal methods are effective, documented in writing, and properly integrated into the contractor’s property management procedures.
- Required Segregation: The PA determines if scrap requires physical segregation, unique processing, or separate reporting based on its nature. Specialized categories include:
- Sensitive, classified, or controlled items.
- Hazardous materials or contaminated waste.
- Precious or strategic metals.
- Items dangerous to public health or safety.
- Government Abandonment: Unless the contract specifies otherwise, the Government reserves the right to abandon parts that are removed and replaced during normal maintenance, repair, overhaul, or modification processes.
Practical Implications
- System Audits: Contractors must maintain robust, written internal controls for scrap; failure to adequately document these procedures can lead to findings of an inadequate property management system.
- Risk-Based Handling: Contractors must be prepared to implement specialized storage and disposal streams for hazardous or sensitive materials to remain compliant with safety and security regulations.
- Maintenance Logistics: Since the Government typically abandons replaced parts, contractors are generally responsible for the cost and logistics of disposing of routine maintenance "tailings" unless they can negotiate different terms.