FAR 45.605—Inventory disposal reports.
Plain-English Summary
FAR 45.605 explains what happens after government property has been disposed of under an inventory disposal schedule. It requires the plant clearance officer to promptly prepare Standard Form 1424, Inventory Disposal Report, once the property has been disposed of and any related proceeds have been credited. The report must capture important post-schedule information, including any property that is lost or otherwise unaccounted for and any changes in quantity or value that the contractor made after submitting the original inventory disposal schedule. The section also specifies where the report must go: to the administrative contracting officer, or to the termination contracting officer when the disposal involves termination inventory, with a copy to the property administrator. In practice, this section creates the formal record of disposal results, supports accountability for government property, and helps the Government track discrepancies, proceeds, and contractor changes that occurred after the initial schedule was submitted.
Key Rules
Prepare SF 1424 promptly
After the property on an inventory disposal schedule has been disposed of and any proceeds have been credited, the plant clearance officer must promptly prepare Standard Form 1424, Inventory Disposal Report. The timing requirement ensures the Government receives a timely official record of the disposal action.
Report lost or unaccounted property
The report must identify any property that was lost or otherwise unaccounted for. This creates a formal record of discrepancies and supports follow-up on accountability, loss, or potential liability issues.
Capture post-submission changes
The report must also show any changes in quantity or value that the contractor made after the initial inventory disposal schedule was submitted. This prevents the final disposal record from reflecting outdated or incomplete information.
Send report to the proper contracting official
The report must be provided to the administrative contracting officer, or to the termination contracting officer when the matter involves termination inventory. This ensures the report reaches the official responsible for oversight of the disposal action.
Copy the property administrator
A copy of the report must be sent to the property administrator. This helps maintain property records and supports coordination among the officials responsible for government property oversight.
Responsibilities
Plant Clearance Officer
Promptly prepare SF 1424 after disposal of the property and crediting of any related proceeds. Identify lost or unaccounted-for property and any contractor-made changes in quantity or value after the initial inventory disposal schedule. Provide the report to the correct contracting official and copy the property administrator.
Contractor
Ensure the inventory disposal schedule and any later changes are accurately reflected so the plant clearance officer can prepare a correct report. Account for property disposition results and proceeds, and support identification of any missing or changed items.
Administrative Contracting Officer
Receive the inventory disposal report for non-termination disposal actions and use it for oversight, recordkeeping, and any follow-up needed on discrepancies or proceeds.
Termination Contracting Officer
Receive the inventory disposal report when the disposal concerns termination inventory and use it to manage termination-related property disposition and related administrative actions.
Property Administrator
Receive a copy of the report and use it to maintain property records, monitor accountability, and coordinate any needed property management follow-up.
Practical Implications
This section is mainly about closing the loop after disposal: the Government needs a final report that matches what was actually disposed of, not just what was originally listed.
Contractors should expect that any late adjustments to quantity or value will be visible in the final report, so changes after submission should be carefully documented and justified.
Missing property cannot be left vague; it must be specifically identified as lost or unaccounted for, which can trigger further review or liability questions.
The routing matters. Sending the report to the wrong contracting official can delay closeout and create recordkeeping gaps, especially in termination cases.
For plant clearance officers and property administrators, this report is a key control document for reconciling inventory, proceeds, and discrepancies after disposal is complete.
Official Regulatory Text
The plant clearance officer shall promptly prepare an SF1424 , Inventory Disposal Report, following disposition of the property identified on an inventory disposal schedule and the crediting of any related proceeds. The report shall identify any lost or otherwise unaccounted for property and any changes in quantity or value of the property made by the contractor after submission of the initial inventory disposal schedule. The report shall be provided to the administrative contracting officer or, for termination inventory, to the termination contracting officer, with a copy to the property administrator.