FAR 45.602-1—Inventory disposal schedules.
Plain-English Summary
FAR 45.602-1 governs the front end of the Government property disposal process after a contractor submits an inventory disposal schedule. It covers how quickly the plant clearance officer must review the schedule, when the officer must accept it or return it for correction, how accepted schedules are verified using Standard Form 1423, what happens when discrepancies or unmet predisposal requirements are found, and the deadline for issuing disposition instructions. It also addresses the contractor’s ability to request removal of property from a disposal schedule and the limited circumstances in which the plant clearance officer should approve that removal, including contractor purchase, supplier return, authorized use on another Government contract, or continued use approved by the contracting officer. Finally, it explains how removal interacts with the screening process and what the plant clearance officer must do if screening has already started. In practice, this section is important because it sets the timing and workflow for clearing excess Government property, prevents delays in disposal, and creates a potential basis for an equitable adjustment when the Government does not issue timely disposition instructions.
Key Rules
Prompt schedule review
The plant clearance officer should review each inventory disposal schedule within 10 days of receipt and either accept it or return it for correction. A schedule properly completed under the instructions for Standard Form 1428 should be accepted.
Verification after acceptance
Within 20 days after accepting a schedule, the plant clearance officer must verify it using Standard Form 1423, following agency procedures. Verification is intended to confirm the accuracy and completeness of the accepted schedule before disposition actions proceed.
Correct discrepancies and omissions
If verification reveals discrepancies, the contractor must correct them. The contractor must also correct any failure to complete predisposal requirements required by the contract before the property can move forward in the disposal process.
Disposition instructions deadline
The plant clearance officer must provide disposition instructions for property on an acceptable inventory disposal schedule within 120 days. If the Government fails to provide timely instructions, the contractor may be entitled to an equitable adjustment.
Removal from schedule allowed
The contractor may ask the plant clearance officer to remove Government property from the inventory schedule. Removal should be approved in specific situations, such as contractor purchase at unit acquisition cost, supplier return at fair market value, authorized use on another Government contract, or continued use approved by the contracting officer.
Screening process coordination
If screening has not started, the plant clearance officer must adjust the schedule or return it for correction when property is removed. If screening has already begun, the officer must promptly notify the screening activity to remove the items from screening.
Responsibilities
Plant Clearance Officer
Review inventory disposal schedules within 10 days, accept properly completed schedules or return them for correction, verify accepted schedules within 20 days using SF 1423, require correction of discrepancies and unmet predisposal requirements, issue disposition instructions within 120 days, and manage removal of items from schedules and screening activities when appropriate.
Contractor
Submit inventory disposal schedules correctly completed under SF 1428 instructions, correct discrepancies identified during verification, correct any unmet predisposal requirements, and may request approval to remove property from the schedule when one of the permitted conditions applies.
Contracting Officer
Authorize the contractor’s continued use of Government property when retention and further use are appropriate, which can support removal of the property from the inventory schedule.
Agency
Follow agency procedures for verification under SF 1423 and ensure the plant clearance process is administered consistently and timely.
Screening Activity
Remove items from the screening process when notified by the plant clearance officer that property has been taken off the inventory schedule after screening has begun.
Practical Implications
This section is mainly about speed and control: delays in review, verification, or disposition instructions can slow contract closeout and property clearance.
Contractors should make sure inventory disposal schedules are complete and accurate the first time, because incomplete schedules can be returned and verification can trigger correction requirements.
The 120-day disposition instruction deadline matters financially; if the Government is late, the contractor may have grounds to seek an equitable adjustment.
Removal from a schedule is not automatic just because the contractor asks for it; the request must fit one of the specific approved scenarios.
If screening has already started, schedule changes require coordination with the screening activity, so late changes can create administrative complications and delay disposal.
Official Regulatory Text
(a) Plant clearance officers should review and accept, or return for correction, inventory disposal schedules within 10 days following receipt from a contractor. Schedules that are completed in accordance with the instructions for Standard Form 1428 should be accepted. (b) Plant clearance officers shall- (1) Use Standard Form 1423 to verify, in accordance with agency procedures, accepted schedules within 20 days following acceptance; (2) Require the contractor to correct any discrepancies found during verification; (3) Require the contractor to correct any failure to complete predisposal requirements of the contract; and (4) Provide the contractor disposition instructions for property identified on an acceptable inventory disposal schedule within 120 days. A failure to provide timely disposition instructions may entitle the contractor to an equitable adjustment. (c) The contractor may request the plant clearance officer’s approval to remove the Government property from an inventory schedule. (1) Plant clearance officers should approve removal of Government property from an inventory schedule when- (i) The contractor wishes to purchase a contractor-acquired or contractor-produced item at unit acquisition cost and credit the contract; (ii) The contractor is able to return unused property to the supplier at fair market value and credit the contract (less, if applicable, a reasonable restocking fee that is consistent with the supplier’s customary practices); (iii) The Government has authorized the contractor to use the property on another Government contract; or (iv) The contractor has requested continued use of the Government property, and the contracting officer has authorized its retention and further use. (2) If the screening process (see 45.602-3 ) has not begun, the plant clearance officer shall adjust the schedule or return the schedule to the contractor for correction. If screening has begun, the plant clearance officer shall promptly notify the activity performing the screening that the items should be removed from the screening process.