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duction Support Inventory will be reported to the Plant Clearance Branch (WRUTP), Technical Support Division, Directorate of Industrial Production Equipment, WRAMA. Separate inventory schedules will be prepared for each FSC or SCC Group (i.e. 3400 Group; 3900 Group, 6600 Group) regardless of the number of FSC or SCC Groups on the Shipping Authorization that transferred the property to plant clearance status.

(1) WRUTP will screen for AF, DOD and other Government agencies requirements in accordance with § 8.505-1(b) of this title and will forward appropriate disposal instructions to plant clearance officers. FSC 3400 controlled industrial production equipment will be shipped to Air Force activities only upon receipt of shipping instructions or approval from WRUTP, WRAMA.

(2) A copy of the shipping document evidencing final disposition will be forwarded to WRUTP, WRAMA. This document will indicate the method of disposal, and in the event disposal was by sale, the amount of sales proceeds.

(i) Excess Non-Controlled Industrial Production Equipment will he reported to the Plant Clearance Branch (WRUTP), Technical Support Division, Directorate of Industrial Production Equipment, WRAMA. Currently with reporting excesses to WRUTP, informational copies of listings will be furnished, in duplicate, to each AMC Center: AMC Aeronautical Systems Center (LMBIM), Wright-Patterson AFB, Ohio; AMC Electronic Systems Center (LEPP), Laurence G. Hanscom Field, Bedford, Massachusetts; AMC Ballistic Missiles Center (LBEBS), AF Unit Post Office, Los Angeles 45, California.

(1) When the acquisition cost of the excess listing is less than $50,000, AMC Centers will maintain information copies for contractors' review and will refer contractors desiring approved items to WRUTP, WRAMA for determination of availability.

(2) When the acquisition cost of the excess listing exceeds $50,000, the AMC Center having cognizance over the facility contract will advise the plant clearance officer and WRUTP, WRAMA within five (5) days after receipt of listings as to whether or not on-site screening is desired.

(3) After AMC Centers have completed on-site screening, the plant clearance

officer will submit listings of unselected items to WRUTP, WRAMA, with advice that on-site screening has been completed.

(4) WRUTP, WRAMA will screen excess listings with contractors, AF activities, DOD, and other Government agencies for authorized requirements and will forward appropriate disposal instructions to plant clearance officers.

(j) Special tooling: See § 1008.510.
(k) GFAE: See AMCR 65-19.

(1) Bailed property will be screened in accordance with the provisions of § 1013.2004 (c) (13) (ii) and (iii) of this chapter. When instructions exist in a bailment agreement for the return of bailed property, the Property Administrator will obtain a reaffirmation of those instructions. If no return instructions exist in a bailment agreement or the specified activity has indicated no requirement, the plant clearance officer will screen excess bailed items for prime commodity classes requirements as set forth in paragraph (p) of this section and/or other appropriate activities, i.e. other services. Bailed property excess to an ARDC bailment contract will be screened concurrently with the ARDC Center that issued the bailment agreement. A copy of the shipping document evidencing disposition will be forwarded the office that initiated the bailment agreement.

(m) IRAN and modification contracts: All excess property generated under IRAN and Modification contracts will be disposed of according to contract provisions.

(n) Property excess to Research and Development contracts will be screened concurrently with the project engineer on the contract and the appropriate processing control branch as set forth in paragraphs (o) and (p) of this section. The only exception to screening project engineers direct pertains to contractual excesses generated from Wright Air Development Division funded contracts. These excess listings will be submitted to WADD, Attn: WWSS, Wright-Patterson AFB, Ohio, for screening with pertinent project engineers and laboratories.

(0) All other excess contractor inventory which can be related to a contract end item (facility excesses described in paragraphs (h) and (i) of this section and experimental property in paragraph (n) of this section excluded) will be reported to the Processing Control Branch,

Operations Support Division, Directorate of Materiel Management at the AMA or depot having prime logistic responsibility for the end item. This activity will effect screening for logistic support and base activities.

(p) When excess contractor inventory cannot be related to a contract end item (bailed property, cases where end item is a report, etc.) screening will be accomplished by the Processing Control Branch at each AMA or depot where appropriate prime commodity classes are located.

(q) Excess contractor inventory common to other services will be screened by the plant clearance officer with those services after AF requirements have been honored. Property excess to contracts that quoted Army and Navy funds will also be screened with appropriate services.

(1) Navy aviation items will be screened with the Aviation Supply Office, Department of Navy, Attn: CDO-A, Philadelphia, Pa.

(2) Army aviation items and Transportation Corps items will be screened with Transportation, Supply & Maintenance Command (TCSMC-PN), P.O. Box 209, Main Street, St. Louis, Missouri.

(r) Screening will be accomplished as set forth in paragraphs (a) through (q) of this section except as indicated below:

(1) Property in N-4, E-4, 0-4, R-3, R-4 and X condition is exempt from screening. This exemption includes bailed property.

(2) Work-in-Process (Schedule C, DD Form 544) is exempt from screening.

(3) Property exempted in § 8.505-1 (c) through (f) of this title.

(s) Local area screening of excess contractor inventory is highly desirable and will be accomplished unless it is evident that such local screening would be impractical or uneconomical. Such factors as the quantity of property available, condition of the property, its value, and the probable costs incident to transfer will be considered. Local area screening will be accomplished within a maximum period of 15 days concurrently with donation screening. Screening will generally be limited to DOD and other Government agency activities within the geographical area where the excess property is located. All activities will be contacted concurrently and requirements honored in the order received, with the

exception that DOD requisitions will take precedence over other Government agency requirements.

(t) Strategic and critical materials: (1) Subject to the minimum quantity requirements, those strategic and critical materials listed below which have been screened and determined to be excess to the Air Force will be reported to General Services Administration, Defense Materials Service, Washington 25, D.C. GSA will be notified by letter stating the location and amount, and describing the material in sufficient detail as to chemical or other composition, specification, size, etc., to indicate the nature of each item. Complete purchase specifications of material content analyses will be included whenever available.

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(2) If the material conforms to stockpile requirements, GSA will furnish complete reporting instructions, pursuant to which the plant clearance officer will submit a report on Standard Form 125, "Report of Strategic and Critical Materials." All packing and transportation expenses will be borne by GSA. If materials reported are unsuitable for stockpiling, or the quantities less than those specified for reporting to GSA, disposition will be accomplished through normal procedures.

[26 F.R. 4659, May 27, 1961, as amended at 27 F.R. 3601, Apr. 14, 1962]

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Transfer of excess contractor inventory to Department of Defense activities and other Government agencies will be on a non-reimbursable basis. General Services Administration approval is required for property transferred to other Government agencies.

§ 1008.505-50 Transfers to the Civil Air Patrol.

Excess contractor inventory may be transferred to the Civil Air Patrol (CAP) on a nonreimbursable basis under authority of 10 U.S.C. 9441 and AFR 65-46 (Supply and Maintenance for Civil Air Patrol). The Civil Air Patrol will have priority of selection over all activities participating in the donation program (§ 1008.508). All requests for transfer under this authority will be approved by the AF-CAP Regional Liaison Office and the GSA Regional Office. No transfers will be executed under this authority until the property is released for disposal by the AF screening activity. [27 F.R. 3601, Apr. 14, 1962]

§ 1008.507 Sale or other disposition of termination inventory.

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Under no circumstances whatsoever will property be sold on credit. Contractor inventory will not be sold to debarred, ineligible or suspended bidders (§ 1.601-1 of this title and Subpart F, Part 1001 of this chapter).

§ 1008.507-2 Competitive sales.

(a) to (c). See § 8.507-2 (a) to (c) of this title.

(d) Contractor sales. Contractor sales may be made of property owned by the contractor or by the Government, if the Government has the right to receive the proceeds of sale or a credit for such proceeds. If a sales contract requires approval of a contracting officer, any plant clearance officer may be designated as an authorized representative of the contracting officer. (Note: This does not include execution of a Direct Sales contract between the Government

and a Purchaser unless he is also a contracting officer).

(1) Sealed bid method. All the contractor's forms and procedures will be approved by the plant clearance officer and will conform with sound commercial practice. The plant clearance officer should use instructions, contained in paragraph (e) of this section as a guide when instructing the contractor conducting a contractor sale. Bids by the contractor or any of its employees will be submitted to the plant clearance officer concurrently with other bids. AFPI Form 90, "Bid Bond (Sale of Government Property)," and AFPI Form 91, "Annual Bid Bond (Sale of Government Property)," will not be accepted as a form of bid deposit on contractor sales of Government Property.

(2) Auction sales. Auctions will be held only upon permission by MCPKP. If both contractor's property and Government property are sold at the same auction, a written agreement will be executed between the contractor, the auctioneer, and the Air Force. Subpart V, Part 1002 of this chapter is inapplicable to contractor sales.

(e) Direct sales. Direct sales include all sales made by contracting officers or plant clearance officers and are limited to Government-owned property. This method will not be used where contractual provisions provide for the crediting of disposal receipts to an AF contract or termination settlement claim. All direct sales will be evidenced by written contracts through the use of Standard Form 114, Invitation Title Page; SF 114A, Bid and Award Page; SF 114B, Item Bid Page; SF 114C, General Terms and Conditions; and AF Form 330, Description and Location of Property.

(1) Duties of plant clearance officer. The designated plant clearance officer will:

(i) Review and evaluate all bids at the time of opening and recommend for acceptance those bids which are responsive and in the best interest of the Government.

(ii) Prepare AFPI Form 72, "Abstract of Bids (Sale of Government Property),” and file all bids received.

(iii) Forward copies of the invitation for bids to the successful bidder for completion in the same manner as the original bid. If the successful bidder is to receive only a portion of the items listed on the invitation for bid, inapplicable items will be deleted.

(iv) Complete the contract and accomplish the "Acceptance by the Government" section and confirm by the contracting officer's signature the proper certificate on the form.

(v) Accomplish vouchers of refund of deposits to unsuccessful bidders. If a successful bidder's deposit is larger than required for the items awarded, instruct the accounting office to credit the deposit to the purchase price, and refund the balance in excess of the purchase price.

(vi) Accomplish all other documents necessary to consummate the sale.

(vii) Distribute contracts.

(viii) Issue written instructions to the contractor directing that the property be released to the purchaser and secure the countersignature of the contracting officer. If the plant clearance officer and the contracting officer are acting in a dual capacity, the countersignature of the chief of contract branch will be obtained.

(ix) Assemble and maintain on each transaction a file containing all relevant information.

(x) Send proceeds from each sale to the appropriate accounting office according to § 1008.507-4(c).

(xi) Insure that property sold by weight is weighed on scales that have been certified as accurate by a Government agency (Federal, State, county, or municipal). Scales will be recertified as required by local law, but not less frequently than once a year. When property is sold by weight, a certified certificate establishing the accurate weight of the property must be obtained. The weight certificates must be furnished by a responsible individual who is not a party to the sale. Weights furnished by a railroad for a shipment in transit or by a mill upon receipt of the shipment are exceptions to these requirements and may be accepted without compliance therewith.

(2) Duties of the contracting officer. Before signing the contract, the contracting officer will assure that: (i) The sales contract is in proper order, (ii) the sales price is fair and reasonable, and (iii) the sale is authorized by applicable regulations. Before releasing the property to the purchaser, the contracting officer will insure that sale proceeds have been collected by the plant clearance officer and properly transmitted to the appropriate accounting office. When an individual is acting in the dual capacity

of plant clearance officer and contracting officer, he will secure the countersignature of the chief of the contract branch. Where property must be released to determine the total sales price, as in the case of sales of scrap on a weight basis, the contracting officer will assure that proceeds are received and transmitted immediately following determination of the total sales price.

(f) Sales of industrial production equipment. In addition to the requirements of paragraphs (a) through (e) of this section, the following actions will be accomplished when any item(s) of Industrial Production Equipment is (are) to be sold:

(1) On the same day that the announcement of sale is made to the general public, copies of Invitation for Bid will be mailed to the following: Two copies to

Office of Assistant Secretary of Defense
(Supply and Logistics),

Production Equipment Branch,
Washington 25, D.C.

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One copy to

WRAMA (WRUTP Directorate of Industrial Production Equipment), Robins AFB, Georgia.

(2) When one hundred (100) or more machine tools in FSC 3411 through 3419 and 3441 through 3449 in screenable condition are excess, it will be the responsibility of the plant clearance officer to request a Market Impact Survey and receive an authorization to conduct the sale prior to the issuance of an Invitation for Bid. The request for a Market Impact Survey will be forwarded to the Directorate of Industrial Production Equipment (WRUTP), Robins Air Force Base, Georgia, concurrently with the submission for screening, of the Inventory Schedules listing the machine tools. WRUTP will obtain the necessary authorization to conduct the sale and advise the plant clearance officer. No sale of one hundred (100) or more machine tools will be conducted without benefit of a Market Impact Survey. The fact that it may be necessary to screen machine tools in increments of less than one

hundred (100) does not obviate the requirement for a Market Impact Survey if the items are later to be combined into a sale of one hundred or more. The Air Force may sell a maximum of seven hundred and fifty (750) machine tools per month. The responsibility for maintaining this limitation is assigned to WRUTP, WRAMA. In order that sales may be properly coordinated, each plant clearance activity will notify WRUTP no later than the 20th of each month the number of machine tools in FSC 3411 through 3419 and 3441 through 3449 which will be sold the following month under the activity's supervision.

(3) When twenty-five (25) or more items of production equipment are offered for sale the following distribution of Invitations for Bid will be required, in addition to the above:

One copy to: AMC (MCPKP).

One copy to: Each of the Small Business Administration Offices.

(4) When the acquisition cost of production equipment to be sold exceeds $25,000 the plant clearance officer will forward a notice of the sale to the U.S. Department of Commerce, Room 1300, 433 West Van Buren Street, Chicago 7, Illinois, for publication in the "Synopsis of U.S. Government Proposed Procurement, Sales and Contract Awards."

(5) The scheduling of auction sales of production equipment will be subject to prior approval of AMC (MCPKP).

(6) Upon completion of sale of twenty-five (25) or more items of production equipment, a summary of that sale will be forwarded to AMC (MCPKP). Minimum information will include (i) Acquisition cost of each item, (ii) sale price of each item, (iii) percentage of return or metal working machines (3400), (iv) percentage of return on related production equipment, (v) number of IFB's mailed out, (vi) number of bids received, and (vii) number of successful bidders.

[26 F.R. 4659, May 27, 1961, as amended at 27 F.R. 3601, Apr. 14, 1962; 27 F.R. 11422, Nov. 20, 1962]

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competitive bids whenever the acquisition cost of the property exceeds $25,000. In addition to the aforementioned review, the sale will be subject to the approval of the Hq AMC Property Disposal Review Board if the acquisition cost of the property sold without competitive bid exceeds $100,000.

(b) to (c) See § 8.507-3 (b) to (c) of this title.

(d) Production generated scrap procedures. Contractor manufactured parts, castings, extrusions, etc. peculiar to the end item being produced, which have been rendered excess due to engineering changes, and which are not carried in the Air Force inventory may be scrapped without further screening through the contractor's scrap and salvage procedures according to § 30.2, Appendix B, paragraph 403 of this title. These items will be listed in any acceptable manner (i.e. tag, work order, etc.) certified by the contractor and AF representative as being excess and peculiar to the end item, and then released for disposal under the approved scrapping procedures.

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(a) The proceeds from the sale of contractor inventory will be credited to the contract under which the property was acquired or furnished if the following conditions are fulfilled:

(1) The contract allows any one or combination of the following procedures. (i) That the proceeds may be applied in reduction of the contract price.

(ii) That the proceeds may be applied to reduce the cost of the work under the contract.

(iii) That the proceeds may be applied as the contracting officer may direct.

(2) Payments, either actual or anticipated in the near future, remain due to the contractor under the applicable contract.

(3) In the event it cannot be determined which contract generated the inventory, or if the inventory came from a multiple funded contract, then the proceeds will be credited as the contracting officer directs.

(b) If the proceeds from the contractor's sale of contractor inventory are not credited to an AF contract or termination claim, DD Form 1131, "Cash Collection Voucher," will be used. DD Form 1131 will be prepared, executed, and distributed by the plant clearance officer in

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