FAR 45.603—Abandonment or destruction of personal property.
Plain-English Summary
FAR 45.603 explains when contractor inventory that has not been successfully reused, transferred, or otherwise screened may be abandoned, destroyed, or donated instead of sold or retained. It covers the conditions for direct destruction, abandonment of non-sensitive and sensitive property at the contractor’s or subcontractor’s premises, and the higher-level approval required for abandonment or destruction of other contractor inventory. The section also addresses when property may be donated to public bodies in lieu of abandonment or destruction, and it ties these actions to the Federal Management Regulation (FMR) procedures for public notice and disposal of excess personal property. In practice, this rule is about avoiding unnecessary storage, handling, and sale costs when property has no realistic value or use, while still protecting public health, safeguarding sensitive items, and ensuring proper oversight. Contractors and plant clearance officials must use it carefully because the authority is limited, approval thresholds matter, and public notice requirements can apply unless a specific FMR exception exists.
Key Rules
Screening must come first
Abandonment or destruction is only considered after contractor inventory has gone through the reutilization screening process in 45.602-2 without success. The rule is intended as a last resort, not an initial disposal option.
Direct action for valueless property
If the property has no commercial value, does not require demilitarization, and is not a danger to public health or welfare, the plant clearance officer or other authorized official may direct destruction or authorize abandonment without further approval. This authority is limited to the specific conditions stated in paragraph (a).
Sensitive property needs consent
Sensitive property may be abandoned at the contractor’s or subcontractor’s premises only with contractor consent. Non-sensitive property may be abandoned without that consent under paragraph (a), but the property still must meet the other eligibility conditions.
Higher approval for other inventory
For other contractor inventory, abandonment or destruction at the contractor’s or subcontractor’s premises requires approval by a Government reviewing official at least one level above the plant clearance officer or other authorized official. This adds an oversight check before disposal of property that is not covered by the simpler authority in paragraph (a).
Cost-benefit test applies
The property must have no commercial value or reutilization, transfer, or donation potential, and the estimated cost of continued care and handling must exceed the estimated sale proceeds. This ensures the Government does not spend more to manage and sell the property than it could recover.
Follow FMR disposal procedures
Any abandonment or destruction under paragraph (b) must be consistent with FMR 102-36.305 through 102-36.325. Those regulations govern the federal disposal process and must be followed in addition to FAR requirements.
Donation is an alternative
Instead of abandonment or destruction, the plant clearance officer or authorized official may authorize donation of property, including unsold surplus property, to public bodies if the property is not sensitive, does not require demilitarization, and is not a danger to public health or welfare. The Government may not pay the costs associated with the donation.
Public notice is usually required
Unless an exception in FMR 102-36.330 applies, the plant clearance officer or requesting official must ensure prior public notice of abandonment or destruction actions. The notice requirement is tied to FMR 102-36.325 and helps provide transparency before disposal occurs.
Responsibilities
Plant Clearance Officer
Determine whether contractor inventory qualifies for abandonment, destruction, or donation under the rule; ensure screening has been completed; apply the correct approval level; verify that property is not sensitive, does not require demilitarization, and does not pose a public health or welfare risk; and ensure required public notice is given unless an FMR exception applies.
Other Authorized Official
Exercise the same disposal authority as the plant clearance officer only within the limits of the section; confirm eligibility criteria are met; and, for paragraph (b) actions, obtain approval from a Government reviewing official at least one level higher before authorizing abandonment or destruction.
Government Reviewing Official
Review and approve abandonment or destruction of other contractor inventory under paragraph (b) when required. This official provides the higher-level oversight needed before the property can be abandoned or destroyed at the contractor’s or subcontractor’s premises.
Contractor
Provide access to inventory for screening and disposal actions; give consent when sensitive property is to be abandoned at the contractor’s or subcontractor’s premises; and comply with any direction to destroy, abandon, or donate property as authorized by the Government.
Requesting Official
When involved in the disposal action, help ensure prior public notice is issued unless an FMR exception applies. The requesting official supports compliance with the notice requirements tied to abandonment or destruction.
Agency
Apply the FMR and FAR disposal framework consistently, maintain oversight of approvals and notices, and ensure that abandonment, destruction, or donation decisions are made only when the regulatory conditions are satisfied.
Practical Implications
This section is mainly a cost-control and risk-control tool: if property has no real value and no reuse potential, the Government can avoid spending money on storage, handling, and sale efforts that would likely produce little or nothing in return.
The biggest compliance trap is skipping the screening process or failing to document why the property meets the no-value/no-risk criteria. Abandonment or destruction is not allowed just because the property is inconvenient to manage.
Sensitive property gets special treatment. Even when abandonment is otherwise allowed, sensitive items may require contractor consent, and property requiring demilitarization cannot be handled under these abandonment/destruction authorities.
For paragraph (b) actions, the higher-level approval requirement is easy to miss. If the property does not fit the simpler paragraph (a) authority, the plant clearance officer cannot act alone.
Public notice is a common oversight point. Unless an FMR exception applies, notice must be given before abandonment or destruction, so agencies should build that step into their disposal workflow.
Donation can be a useful alternative when property still has public benefit, but the Government cannot absorb donation-related costs. Agencies should confirm the receiving public body can take the property without Government-funded support.
Official Regulatory Text
(a) When contractor inventory is processed through the reutilization screening process prescribed in 45.602-2 without success, and provided the property has no commercial value, does not require demilitarization, and does not constitute a danger to public health or welfare, plant clearance officers or other authorized officials may without further approval- (1) Direct the contractor to destroy the property; (2) Abandon non-sensitive property at the contractor’s or subcontractor’s premises; or (3) Abandon sensitive property at the contractor’s or subcontractor’s premises, with contractor consent. (b) Provided a Government reviewing official at least one level higher than the plant clearance officer or other agency authorized official approves, plant clearance officers or other agency authorized officials may authorize the abandonment, or order the destruction of other contractor inventory at the contractor’s or subcontractor’s premises, in accordance with FMR 102-36.305 through 325 (41 CFR 102-36.305-325) and consistent with the following: (1) The property is not considered sensitive, does not require demilitarization, has no commercial value or reutilization, transfer or donation potential, and does not constitute a danger to public health or welfare. (2) The estimated cost of continued care and handling of the property (including advertising, storage and other costs associated with making the sale), exceed the estimated proceeds from its sale. (c) In lieu of abandonment or its authorized destruction, the plant clearance officer or authorized official may authorize the donation of property including unsold surplus property to public bodies, provided that the property is not sensitive property, does not require demilitarization, and it does not constitute a danger to public health or welfare. The Government will not bear any of the costs incident to such donations. (d) Unless the property qualifies for one of the exceptions under FMR 102-36.330 (41 CFR 102-36.330), the plant clearance officer or requesting official will ensure prior public notice of such actions of abandonment or destruction consistent with FMR 102-36.325 (41 CFR 102-36.325).