necessary. It will be the plant clearance officer's responsibility to assure that adequate verification is accomplished to determine that:

(1) Inventory is present at the location indicated;

(2) It is allocable to the modified, completed, or terminated contract or the terminated portion thereof;

(3) Quantity and condition are correctly stated; and

(4) The contractor has endeavored, where practicable, to divert to other work or to return contractor-acquired property to supplier for appropriate credit. Verification may be performed by resident Government personnel prior to the formal submission of inventory schedules to the plant clearance officer. Screening prescribed in § 18-24.205 shall not be withheld after receipt of acceptable inventory schedules pending completion of inventory verification. The results of the verification shall be recorded on DD Form 1642, Inventory Verification Survey, in accordance with instructions for performing inventory verification set forth in § 18-24.302-1. A copy of the completed survey form shall be furnished the appropriate contracting officer. Upon completion of inventory verification, the plant clearance officer shall take immediate action to correct any discrepancies noted, including coordination with the contractor, contracting officer, or property administrator, and screening activities, as appropriate. When a controversy arises with respect to allocability, the contractor shall be required to substantiate his position with appropriate documentation which the plant clearance officer shall evaluate and forward to the contracting officer with his recommendations for decision.

of inventory schedules, by the contractor, the plant clearance officer shall review, or cause to be reviewed the contractor's treatment of any items of contractor inventory as scrap. The review shall include a careful examination of the inventory schedules and, in appropriate cases, physical inspection of the property involved. Prior to authorizing disposal of items as scrap, the plant clearance officer shall obtain such approval as may be required by § 18-24.211. § 18-24.204-2 Preinventory scrap determinations.

The contractor may request the plant clearance officer to make a preinventory scrap determination of inventory considered by the contractor to be without value except as scrap. These preinventory scrap determinations shall be based on onsite surveys and approved, if required, pursuant to § 18-24.211. If the contractor's scrap recommendation is approved, the contractor may make a single descriptive entry on an inventory schedule covering that property and indicating its approximate total cost. If the plant clearance officer determines that any of the property listed by the contractor as scrap is serviceable, usable, or salvable, the contractor shall, in accordance with this determination, submit appropriate inventory schedules. If the determination is made subsequent to the submission of a scrap inventory schedule, the contractor shall be required to submit revised inventory schedules in proper form.

§ 18-24.204-3 Segregation.

Property determined to be scrap shall be segregated by the contractor to the extent necessary to assure the highest net proceeds. In appropriate cases, when approved by the plant clearance officer, these sales may be consolidated with the contractor's sales of scrap generated from his other work and, in such cases, the scrap warranty required by § 1824.204-5 may be waived at the discretion of the plan clearance officer.

§ 18-24.204-4 Contractor's approved scrap procedure.

(a) When a contractor has an approved scrap procedure, certain property may be routinely disposed of in accord

ance with that procedure and not processed under this part. Production scrap, as defined in § 18-24.101-17, and production spoilage, may be disposed of through the contractor's approved scrap procedure. In addition, worn, broken, mutilated, or otherwise rejected parts excess to overhaul and repair contracts, may be similarly processed with the approval of the plant clearance officer.

(b) A plant clearance case shall not be established nor shall approval in accordance with § 18-24.211 be required for property which is disposed of through the contractor's approved scrap procedure.

(c) The contractor's scrap and salvage procedures, particularly the sales aspects thereof, shall be reviewed by the plant clearance officer prior to its approval by the property administrator. The plant clearance officer shall assure that the procedure contains adequate requirements for inspection and examination of items to be disposed as scrap. When the contractor's approved scrap procedure does not require physical segregation and disposition of Governmentowned from contractor-owned scrap, care shall be exercised to assure that a contract change, which generates a large quantity of property, does not result in an inequitable return to the Government. In these cases, a determination shall be made as to whether separate disposition of Government scrap would be appropriate.

(d) Scrap, other than that disposed of through the contractor's approved scrap procedure, shall be reported on appropriate inventory schedules for disposition in accordance with the provisions of this part.

§ 18-24.204-5 Scrap warranty.

(a) If contractor inventory is sold as scrap, including sale to the holding contractor, a scrap warranty in the form outlined in DD Form 1639, Scrap Warranty, shall be included as a special condition of sale, unless the requirement is waived pursuant to paragraph (d) of this section.

(b) The scrap warranty may be released on behalf of the Government by the contracting officer (TCO for termination inventory), if, as consideration for

the release, the Government is paid the difference between (1) the price for which the material was sold as scrap, and (2) an amount not less than that which the material could reasonably be expected to bring if it were sold at a fair and reasonable price for purposes other than use as scrap. The release of the scrap warranty shall be given by the Government and the consideration paid to the Government, even though the contract containing the warranty was not made directly with the Government.

(c) In the event of resale of any material subject to a scrap warranty, the seller is required to obtain an appropriate scrap warranty from the purchaser. Upon tender of this warranty to the Government, the seller shall be released by the Government from liability under his own warranty.

(d) The scrap warranty requirement may be waived by the plant clearance officer in circumstances described in § 1824.204-3 and whenever it can be clearly established that such a waiver would not adversely affect the Government's interest. A written justification supporting the waiver shall be prepared and placed in the case file.

(a) To promote maximum utilization within the Government, serviceable or usable property included in the contractor's inventory schedules shall be screened prior to disposition by donation or sale. The plant clearance officer shall arrange, in such a manner as to avoid interruption of the contractor's operations, for physical inspection of such property at the contractor's plant if requested by prospective transferees. All transfers of property within NASA or other agencies of the Government shall be without reimbursement. Costs incident to transfers, including packing, crating, preparation for shipment, loading and transportation, which are not the responsibility of the contractor, shall be borne by the transferee. § 18-24.205-2

Procedure.

(a) The contracting officer will submit approved termination inventory schedules and excess property listings, as fur

nished by the contractor, to the plant clearance officer for appropriate redistribution or utilization.

(b) Plant clearance officers will forward copies of termination inventory schedules and excess property listings to the installation technical personnel associated with the contract on which the property was generated. To eliminate unnecessary redistribution and utilization actions, the technical personnel will be requested to review the property listings and inventory schedules and advise the plant clearance officer on the feasibility of further use of the property by NASA or other Government agency.

(c) Based upon the determination of the contracting officer and the advice of the technical personnel, the plant clearance officer will initiate action with regard to transfer to other contractors, redistribution or utilization of the property as follows:

(1) Property which is considered to be excess by the contracting officer and technical personnel to other contract requirements will be subject to review by the plant clearance officer for possible utilization at the installation, screening by NASA installations, or reporting to the General Services Administration.

(2) The extent of screening the excess property throughout NASA will be determined by the plant clearance officer. Line items having an acquisition cost of less than $300 need not be screened by NASA installations unless the plant clearance officer determines it is to the best interest of NASA to do so.

(3) To insure prompt screening throughout NASA the following limitations generally will apply:

(i) Screening by contracting officer and technical personnel associated with the contract-5 days,

(ii) Screening within the installation having contract jurisdiction-5 days,

(iii) Screening by all other NASA installations-20 days.

(d) During the NASA screening period, the plant clearance officer will comply with and process any properly executed shipping instructions issued by other NASA installations.

(e) Compliance with shipping instructions will be accomplished in the order in which the requests are received.

(f) In the event such property is not available after receipt of shipping instructions, the installation issuing such instructions will be notified immediately by the plant clearance officer, giving reasons for nonavailability.

(g) Upon the expiration of the final NASA screening period, excess property reportable to the General Services Administration will be reported ir. accordance with the provisions of Subchapter H, Part 101-43 of the Federal Property Management Regulations.

(h) Shipping instructions received on excess property reported to the General Services Administration for screening will be processed in accordance with the provisions of Subchapter H, Part 101-43 of the Federal Property Management Regulations.

§ 18-24.205-4 Special screening procedures.

(a) General. For the special categories of property identified in this section, standard screening requirements in § 1824.205 are superseded or modified by the procedure set forth for each category.

(b) Standard components of special test equipment. (1) Contractors reporting special test equipment for disposal which contain standard, general or multipurpose components will adequately describe the composite unit to clearly reflect its capability and will further list and describe, in sufficient detail to permit screening all such standard components which can be economically removed and reused.

(2) In the event the contractor has a continuing requirement for the standard components to meet other approved special test equipment or facilities requirements, he shall annotate the DD Form 545 to indicate his requirement for such standard components. Screening shall be accomplished in accordance with § 1824.205-2 and the screening activity shall be requested to advise whether they shall have a requirement for the composite unit or any of the standard components which have not been annotated as being required by the contractor. If the composite unit is not required by NASA the contractor shall have first priority for those standard components which have

been approved for transfer by the contracting officer.

(3) Standard components, except those categorized as industrial plant equipment, which have not been selected by the contractor or NASA installation shall be screened in accordance with § 18-24.205-2. If the standard components are categorized as industrial plant equipment which can be economically removed and reused, and have not been annotated for retention by the contractor, DD Form 1342 shall be prepared and submitted to the plant clearance officer concurrently with the DD Form 545.

(4) Standard components shall not be removed from the composite unit until the requirements for the items have been established. If no requirements exist, the composite units shall be disposed of in accordance with §§ 18-24.206 and 1824.207.

(c) Nuclear materials. (1) The possession, use, and transfer of certain nuclear materials are subject to the controls of the U.S. Atomic Energy Commission (AEC) pursuant to the Atomic Energy Act of 1954, as amended. The materials

are:

(i) "Byproduct material"-meaning any radioactive material (except special nuclear material) yielded in or made radioactive by exposure to the radiation incident to the process of producing or utilizing special nuclear material (see AEC Regulation 10 CFR, Part 30);

(ii) "Source material" meaning(a) Uranium, thorium, or any other material which is determined by AEC pursuant to the provisions of the Atomic Energy Act of 1954, as amended, to be source material, or

(b) Ores containing one or more of the foregoing materials, in such concentration as the AEC may, by regulation, determine from time to time (see AEC Regulation 10 CFR, Part 40); and

(iii) "Special nuclear material" meaning

(a) Plutonium, uranium enriched in the isotope 233 or in the isotope 235, and any other material which the AEC, pursuant to the provisions of the Atomic

Energy Act of 1954, as amended, determines to be special nuclear material, or

(b) Any material artificially enriched by any of the foregoing (see AEC Regulation 10 CFR, Part 70).

(2) Excess nuclear material in the categories described above shall be disposed of in accordance with instructions provided in the license agreement between the contractor in possession and the AEC. In the absence of specific instructions, excess materials described above shall be reported by letter to the Property and Supply Division, NASA Headquarters. The nature of the material, quantity, location, and ownership shall be indicated.

(d) Strategic and critical materials. Subject to the minimum quantity requirements set forth below, all strategic and critical materials listed, when determined to be excess as the result of screening in accordance with § 1824.205-2, shall be reported by the holding agency to the Property Management and Disposal Service (PMDS), General Services Administration, Washington, D.C. 20405, which will determine whether they shall be transferred to the General Services Administration for stockpiling:

(1) Upon determination that the materials are excess, the holding agency shall notify the PMDS by letter showing the location and quantity and describing the material in sufficient detail as to chemical or other composition, specification, size, etc., to indicate the nature of each strategic material (complete purchase specifications or material content analyses shall be included whenever available); and

(2) The General Services Administration shall review the notification letter from the holding agency and, if the General Services Administration decides that the material appears to conform to stockpile requirements and is needed for stockpile objectives, it shall furnish the holding agency with complete reporting instructions, pursuant to which the holding agency shall submit a report on Standard Form 125, Report of Strategic and Critical Materials.

Less than minimum quantities of strategic and critical materials shall be screened in accordance with the provisions of § 18-24.205-2.

(e) Printing equipment. Printing equipment (see NASA Policy Directive 1490.1, "NASA Printing Management Program" Attachment B) determined to be excess to a contract shall be reported to the installation Central Printing Management Office for screening. If advised that no NASA requirements exist, the reporting activity shall submit the listing of printing equipment to the General Services Administration for further utilization screening in accordance with § 18-24.205-2.

(f) Motor vehicles. When reporting vehicles assigned to Federal Supply Groups 23, 24, and 38 for screening pursuant to § 18-24.205-2, the estimated one-time cost of repairs (parts and labor) will be inserted in block 18b and used to assign a condition code for insertion in block 18c of Standard Form 120. [Reserved]

§ 18-24.205-5 § 18-24.205-6

[Reserved]

§ 18-24.205-7 Procurement of packing, crating, and handling services.

The contract administration office shall be responsible for the procurement of packing, crating, and handling services. To accelerate plant clearance, appropriate data must be furnished by the transferee and shall be cited in the transfer or shipping document. The doc

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ument shall not be forwarded to the contract administration office unless the required packing, crating, and handling funding data are furnished. Prior to procurement of packing, crating, and handling services, the contracting officer shall assure that the method employed is economical and in the best interests of the Government. Use of van-type shipments shall be explored as an additional means for savings resulting from reduction in packaging requirement and/or cost differential for shipment by van versus other methods of shipment. § 18-24.205-8 Procedures for automatic data processing equipment (ADPE).

(a) Those items of ADPE as defined in § 18-1.235 (regardless of FSC) which are Government-owned or which are leased by the contractor under terms which provide to the Government an option to purchase or other residual interests (including the right to use until expiration of the lease) will be reported to the Property Management Office of the Installation on Standard Form 120, "Report of Excess Personal Property". Normally the time required for acquisition studies required to select replacement equipment makes it possible to project the anticipated release date 180 days before the equipment is available for transfer. ADPE should be reported as soon as it is possible to project the release date. The following minimum reporting schedule shall, however, apply.