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FAR and DFARS › DFARS Part 245: Government Property › Subpart 245.6

DFARS 245.602-1 Inventory disposal schedules.

The codified text (eCFR, as of 2026-10-02). Under the Revolutionary FAR Overhaul ↗, agencies follow class deviations with new text for many parts while the formal rules go through the Federal Register: check the solicitation and your contract's clauses, which rule.

In plain English

This section requires plant clearance officers to verify inventory disposal schedules for termination inventory. They must check that the listed property is allocable to the contract, that quantities are accurate, and that the condition matches the contractor's assigned Federal Condition Code. This matters because it ensures that contractors properly account for and dispose of government property after a contract termination.

Applies to: Plant clearance officers verifying termination inventory schedules

What it requires

  • Verify inventory schedules to determine allocability, quantity, and condition.
  • Review contract requirements, delivery schedules, bills of material, and other documents to assess whether property is appropriate for the contract or exceeds required quantities.
  • Review the contractor's recent purchases, production plans, stock records, and bills of material for similar items.
  • Take measures to assure that available inventory matches the quantities listed on the schedules.

Key terms: termination inventory · plant clearance officers · inventory disposal schedules · allocability · Federal Condition Code

Written by AI from this section's text. A guide, not legal advice: the text below rules.

The text

For termination inventory, plant clearance officers shall verify inventory schedules, either directly or through appropriate technical personnel, to determine the following:

(a) Allocability.

(1) Review contract requirements, delivery schedules, bills of material, and other pertinent documents to determine whether schedules include property that—

(i) Is appropriate for use on the contract; or

(ii) Exceeds the quantity required for completion of the contract, but could be diverted to other commercial work or Government use.

(2) Review the contractor's—

(i) Recent purchases of similar material;

(ii) Plans for current and scheduled production;

(iii) Stock record entries; and

(iv) Bills of material for similar items.

(b) Quantity. Take measures to provide assurance that available inventory is in accordance with quantities listed on the inventory schedules. Quantities may be verified by actual item count, acceptance of labeled quantities in unopened/sealed packages, scale counts, or other appropriate methods.

(c) Condition. Ensure that the physical condition of the property is reasonably consistent with the Federal Condition Code supplied by the contractor.

← 245.602 Reutilization of Government property. · 245.602-3 Screening. →

Rule changes for DFARS Part 245

Source: eCFR, 48 CFR chapters 1 and 2 (GPO GovInfo bulk data) ↗. Plain words for the terms: glossary.

DFARS 245.602-1 Inventory disposal schedules · SpendQuery