(iv) Having determined (from the above) the number of lines to be
verified, the lines shall be chosen at random from each applicable
subgroup. All of the units on each line selected shall be thoroughly
verified as to quantity, condition, etc., in accordance with the
following-

(A) Schedule A Items-Metals in Mill Product Form. Exact deter-
mination of the quantities or weights listed is not required;
however, a check shall be made to verify that the amount
or weight is approximately correct. For example, on a line
listing 3,400 pounds of steel strip in rolls, visually select an
average-size roll, have it weighed, and multiply this weight
by the number of rolls. Likewise, for wire on spools with the
total quantity indicated in pounds, weigh several spools to
verify weight shown on each spool. If correct, accept the
weight as shown on each spool and merely total the various
spool weights. For material susceptible to these checks, the
dimensions of single samples should be checked by scale or
micrometers. The composition, hardness, type alloy, etc.,
listed on the schedules should be checked against original
tags or markings of the producer whenever possible.
(B) Schedule B Items-Raw Materials (other than metals), Pur-
chased Parts, etc. Visually check representative sample pieces
from each line selected for inspection to verify identity.
Refer to Technical Manuals and Government and commercial
drawings to the extent necessary for satisfactory identification.
For small purchased parts, weight count the material. When
an item is packed in similar size containers, equally loaded,
weight counting of several such containers and multiplying
by the number of containers is satisfactory. On purchased

DISPOSITION OF PERSONAL PROPERTY IN POSSESSION OF CONTRACTORS

parts still in the original supplier's packages, acceptance of the quantity shown on the original marking is satisfactory. Finished Product and Finished Components shall be inspected for strict compliance with contract specifications. Finished Product reported in connection with a terminated contract shall be verified to the same extent as would have been required in the absence of termination. Be particularly alert to the possibility of the contractor's having included rejects or spoilage as acceptable inventory.

(C) Schedule C Items Work in Process. Visually examine representative samples from each line selected for inspection to determine that the state of completion agrees with that shown on the schedules. Refer to specifications, drawings, bills of material, etc., as necessary, for this verification. Be particularly alert to prevent the inclusion of nonreworkable rejects or spoilage.

(D) Schedule D Items-Dies, Jigs, Fixtures, and Special Tools. Visually examine representative samples from each line selected for inspection to verify identity. Identity can usually be ascertained by part numbers stamped on or molded into the tools. Particular alertness shall be exercised to ascertain that these items were actually required in the production of the items under the terminated, modified, or completed contract and that they were not common to the contractor's other manufacturing processes.

(e) Completion of Inventory Vertification Survey. As soon as verification has been accomplished, the completed survey form should be returned to the plant clearance officer, together with one copy of inventory schedule(s) marked to identify items selected for sampling.

24.302-2 DD Form 1636, Inventory Disposal Report, shall be prepared for each completed plant clearance case. Inventory Disposal Reports shall be distributed to the appropriate contracting officer and the property administrator. The plant clearance officer shall be responsible for preparing and distributing a consolidated Inventory Disposal Report, as appropriate. All items on the form are self-explanatory, except as follows:

(a) Item 11. Insert total dollar value of inventory reported for plant clearance purposes.

(b) Item 12. Insert amount to be deducted from the gross value of inventory due to errors in pricing, shortages, overages, etc. Explain "Remarks,” Item 25.

(c) Item 14. Insert amount which contractor in possession is retaining or withdrawing at full acquisition cost (see 24.202).

(d) Item 15. Insert full acquisition cost in appropriate column, and in "Proceeds" column insert the acquisition cost less approved handling, transportation, or restocking charges (see 24.202–2).

FORMS, INSTRUCTIONS, AND REPORTS

(e) Item 16. Insert the total acquisition cost of all transfers accomplished. For lines 16A through 16F, insert subtotals representing value of transfers to each service or agency indicated.

(f) Items 18 through 20. Insert acquisition cost and gross proceeds. Where approved costs of sale are reimbursed from proceeds, net proceeds shall be identified under "Remarks."

(g) Item 21. Insert acquisition cost of inventory sold by the contractor with proceeds applied as a credit to overhead.

(h) Item 24. May be used to report transactions not otherwise identified. (i) Item 27. (1) Explain all entries in Item 12. (2) Show specific disposition of proceeds reported in Items 14 and 15; i.e., indicate contract number and invoice to which proceeds were applied and verfied, amounts deleted from specific contractor claims, or applied as a credit to the claim. If payment was made to the Government, indicate financial management or fiscal office where proceeds were deposited. (3) Explain any unusual entries requiring explanation. 24.302-3 [Reserved]

24.302-4 Instructions for Establishing a Plant Clearance Case. Upon receipt of acceptable inventory schedules or DD Form 1342 from the contractor or from other Government sources provided by this Part, the plant clearance officer shall assign a plant clearance case number in accordance with 24.302-5 and establish a plant clearance case file. The case number, contractor's name, and contract number shall be identified on the case folder. Termination inventory shall be identified with the word "Termination" on the outside of the case folder to insure priority handling. Separate submissions of inventory schedules and DD Forms 1342, applicable to one contract at the same location, shall be consolidated, whenever possible, under one plant clearance case. The plant clearance case file, as a minimum, shall contain the following:

(i) copy of DD Form 1637, Notice of Acceptance of Inventory;
(ii) copy of inventory schedules or DD Form 1342 (The copy of the
inventory schedule will be annotated by the plant clearance officer
to reflect all disposal actions accomplished. Upon completion of
all plant clearance actions, this copy should reflect disposition of
all inventory reported for plant clearance action.);

(iii) copy of letters or transmittal documents forwarding contractor
inventory to the appropriate screening activity;

(iv) copies of all shipping instructions, correspondence, or other instructions directing the disposition of contractor inventory, or evidence of no requirements;

(v) copies of all shipping documents accomplishing transfer or shipment of contractor inventory;

(vi) copy of Inventory Verification Survey or other forms evidencing completion of allocability review;

(vii) copies of appropriate forms authorizing donation;

(viii) copies of all appropriate forms evidencing the sale of contractor inventory;

(ix) appropriate documentation indicating proper disposition of any proceeds resulting from plant clearance action;

DISPOSITION OF PERSONAL PROPERTY IN POSSESSION OF CONTRACTORS

(x) copies of all other correspondence or forms bearing on disposal actions concerned with the case;

(xi) copies of all pertinent correspondence and approvals concerning Property Disposal Review Board cases, and antitrust clearance, when required; and

(xii) copy of Inventory Disposal Report.

24.302-5 Instructions for Assigning Plant Clearance Case Number.

(a) The plant clearance case number shall consist of a two part number. The code structure shall consist of the contract prefix assigned the NASA installation in 50.302-3.

(b) The second part shall consist of a consecutively numbered serial number, locally assigned commencing with 001 at the beginning of each calendar

year.

(c) Combined, the plant clearance case number assigned by the plant clearance officer will be in accordance with the following example:

"NAS1-010"

(i) "NAS1" indicates that the Langley Research Center is designated
as the office to which the plant clearance officer is assigned.
(ii) "010" indicates that this is the tenth case established by the Langley
Research Center.

(d) The plant clearance number assigned will be recorded on DD Form 1635, Plant Clearance Register which will provide a permanent numerical listing of plant clearance cases.

24.302-6 Instructions for Preparing Standard Form 120, Report of Excess Personal Property. (See Subpart H, paragraph 101-43.4902-1 of the Federal Property Management Regulations.)

24.302-7 [Reserved.]

24.302-8 General Sales Terms and Conditions and Special Conditions of Sale. (a) The following general sales terms and conditions shall be included, as a minimum, in contractor-conducted sales by formal invitation:

(i) Inspection. The Bidder is invited, urged, and cautioned to inspect
the property to be sold prior to submitting a bid. Property will be
available for inspection at the places and times specified in the
Invitation. In no case will failure to inspect constitute grounds
for the withdrawal of a bid after opening.
(ii) Condition and Location of Property. Unless otherwise specifically
provided in the Invitation, all property listed therein is offered
for sale "as is" and "where is." If it is provided therein that the
Contractor shall load, then "where is" means f.o.b. conveyance
at the point specified in the Invitation. The description is based
on the best available information. However, the Contractor makes
no warranty, express or implied, as to quantity, kind, character,
quality, weight, size, or description of any of the property or its
fitness for any use or purpose. Except as provided in Conditions
No. (viii) and (x), no request for adjustment in price or for
rescission of the sale will be considered. This is not a sale by
sample.

FORMS, INSTRUCTIONS, AND REPORTS

(iii) Consideration of Bids. The Bidder agrees that his bid will not be withdrawn within the period of time specified for the acceptance thereof following the opening of bids (sixty (60) calendar days if no period is specified by the Contractor or by the Bidder, but not less than (10) calendar days in any case) and that during such period his bid will remain firm and irrevocable. The right is reserved to reject any or all bids, to waive any technical defects in bids, and unless otherwise specified in the offering or by the Bidder, to accept any one item or group of items in the bid. Unless the Invitation otherwise provides, bids may be submitted on any or all items. However, unless the Invitation otherwise provides, a bid covering any listed item must be submitted on the basis of the unit specified for that item and must cover the total number of units designated for that item. In case of error in the extension of prices, unit prices will govern.

(iv) Payment. The Purchaser agrees to pay for property awarded to him in accordance with the prices quoted in his bid. Payment of the full purchase price, subject to any adjustment pursuant to Condition No. (viii), must be made within the time specified for removal and prior to delivery of any of the property. In the event that any adjustment is made pursuant to Condition No. (viii), payment must be completed immediately subsequent to such adjustment. The balance of the purchase price after applying the total bid deposit made by the Purchaser (if a bid deposit was required) under the Invitation (or otherwise the full purchase price) shall be paid to the Contractor in cash or by certified check, cashier's check, traveler's check, bank draft, or postal or express money order. The Contractor reserves the right to apply any bid deposits made under this Invitation by a Bidder against any amounts due to the Contractor under a contract awarded by him under this Invitation for Bid. In those instances where the total sum becoming due to the Contractor from the Purchaser on a contract awarded to him under the Invitation is less than the total amount deposited with his bid, the difference shall be promptly refunded. Deposits accompanying bids which are not accepted shall be promptly returned.

(v) Title. Unless otherwise specified in the Invitation, title to the items of property sold hereunder shall vest in the Purchaser as and when full and final payment is made, except that if the Invitation provides that loading will be performed by the contractor, title shall not vest until such payment and loading are completed. On all motor vehicles and motor-propelled or motordrawn equipment requiring licensing, a certificate of release, Standard Form 97, Certificate of Release of a Motor Vehicle, executed by the Contracting Officer (or a State certificate of title), shall be furnished for each vehicle and piece of equipment.