FAR 45.602-2—Reutilization priorities.
Plain-English Summary
FAR 45.602-2 establishes the mandatory reutilization hierarchy for contractor inventory and other Government property that is no longer needed at the current location but is not eligible for immediate abandonment or destruction under 45.603(b). It tells plant clearance officers how to move property through the required sequence of disposition options: first reuse within the owning agency, then transfer of educationally useful equipment to schools and nonprofit organizations, then reporting to GSA for reuse within the Federal Government or donation as surplus property. It also identifies categories of property that may be disposed of directly under agency procedures without reporting to GSA, including property approved for abandonment or destruction, property furnished to nonappropriated fund activities, foreign excess personal property, scrap, perishables, trading stamps and bonus goods, hazardous waste or toxic and hazardous materials, controlled substances, property dangerous to public health and safety, and classified or sensitive property. Finally, it separately addresses nuclear materials, which must be disposed of under NRC, state licensing, Federal, and agency requirements. In practice, this section is about ensuring the Government gets the maximum value and lawful reuse from excess property while protecting safety, security, environmental compliance, and special statutory programs.
Key Rules
Follow the reuse hierarchy
Plant clearance officers must initiate reutilization actions for all property that does not meet the abandonment or destruction criteria in 45.603(b). The authorized methods must be used in descending priority order unless a specific exception applies.
Reuse within owning agency first
The highest-priority disposition is reuse by the agency that owns the property. This means the property should be screened for internal needs before any external transfer or disposal action.
Transfer educationally useful equipment
Educationally useful equipment must be considered for transfer to schools and nonprofit organizations under Executive Order 12999 and 15 U.S.C. 3710(i). This is a separate priority step before reporting property to GSA.
Report remaining property to GSA
If property is not reused within the owning agency and is not otherwise excepted, it must be reported to GSA for possible reuse within the Federal Government or donation as surplus property.
Use agency procedures for exempt categories
Certain categories may be disposed of under agency procedures without reporting to GSA, including property approved for abandonment or destruction, property furnished to nonappropriated fund activities, foreign excess personal property, scrap, perishables, trading stamps and bonus goods, hazardous waste or toxic and hazardous materials, controlled substances, property dangerous to public health and safety, and classified or sensitive property.
Handle nuclear materials separately
Nuclear materials must be disposed of in accordance with Nuclear Regulatory Commission requirements, applicable state licenses, Federal regulations, and agency regulations. This category is governed by specialized controls and is not handled through the ordinary reutilization chain.
Responsibilities
Plant Clearance Officer
Initiate reutilization actions for all property that is not eligible for abandonment or destruction under 45.603(b). Apply the disposition hierarchy in the required order, ensure property is screened for internal reuse, coordinate educational transfer when applicable, report eligible property to GSA, and route exempt or special-category property through the correct agency procedures.
Owning Agency
Screen property for internal reuse and accept or direct reuse of property within the agency before it is offered for external transfer or disposal. Ensure agency procedures exist for categories that may be disposed of without GSA reporting.
Contracting Activity / Agency Property Management Officials
Support the plant clearance process by identifying property, determining whether it falls into an exempt category, and ensuring compliance with agency, Federal, environmental, safety, and security requirements for disposition.
Schools and Nonprofit Organizations
Receive educationally useful equipment when transferred under the applicable statutory and executive order authority, subject to the transfer process and eligibility requirements.
GSA
Receive reports of eligible excess property for possible reuse within the Federal Government or donation as surplus property, and administer the surplus property channel as applicable.
Nuclear Regulatory Commission / State Licensing Authorities / Agency Compliance Officials
Oversee or enforce the specialized legal and regulatory requirements governing disposal of nuclear materials, including licensing and safety controls.
Practical Implications
This section creates a mandatory order of disposition, so skipping directly to disposal or donation without first considering internal reuse can create compliance problems.
Contractors and property administrators should carefully classify property before disposition, because exempt categories such as hazardous waste, controlled substances, and classified items are handled differently and often require specialized procedures.
Educational transfer opportunities can be missed if equipment is not identified early as educationally useful; timely screening matters because this is a distinct priority before GSA reporting.
The phrase 'without reporting to GSA' does not mean 'without controls'—agency procedures still must address safety, environmental, security, and legal requirements.
Nuclear materials and sensitive or dangerous items are high-risk categories that require extra coordination; mishandling them can create serious regulatory, safety, and security exposure.
Official Regulatory Text
Plant clearance officers shall initiate reutilization actions for all property not meeting the abandonment or destruction criteria of 45.603 (b). Authorized methods, listed in descending order from highest to lowest priority, are- (a) Reuse within the owning agency; (b) Transfer of educationally useful equipment to schools and nonprofit organizations (see Executive Order 12999, Educational Technology: Ensuring Opportunity For All Children In The Next Century, April 17, 1996, and 15 U.S.C. 3710(i) ); (c) Report to GSA for reuse within the Federal Government or donation as surplus property; (d) Dispose of the following property in accordance with agency procedures without reporting to GSA: (1) Property determined appropriate for abandonment or destruction (see Federal Management Regulation (FMR) 102-36.305, 41 CFR 102-36.305 ). (2) Property furnished to nonappropriated fund activities (see FMR 102-36.165, 41 CFR 102-36.165 ). (3) Foreign excess personal property (see FMR 102-36.380, 41 CFR 102-36.380 ). (4) Scrap, except aircraft in scrap condition. (5) Perishables, defined for the purposes of this section as any personal property subject to spoilage or decay. (6) Trading stamps and bonus goods. (7) Hazardous waste or toxic and hazardous materials. (8) Controlled substances. (9) Property dangerous to public health and safety. (10) Classified items or property determined to be sensitive for reasons of national security; and (e) Dispose of nuclear materials (see 45.603-3(b)(5)) in accordance with the Nuclear Regulatory Commission, applicable state licenses, applicable Federal regulations, and agency regulations.