Is there a way for the USG to release GFP on a current contract to a Contractor without it continuing to be GFP? I understand any equipment given to a Contractor IS GFP, so my initial response is that this is not a viable option.
A TCO/PCO does have the authority to release (aka abandonment) but ONLY after they exercise the disposition process delineated out in FAR 45.6. Terminations do not provide an alternate process to disposition requirements. Abandonment should only be exercised as the last resort and has legal implications if implemented inappropriately. DoD Manual 4160.21 Volume 2 prescribes uniform procedures for the disposition of DoD property and establishes the sequence of the disposition process. This manual is applicable to all DoD components. Below is a link to the DoD Manual 416.21-V2. http://www.dtic.mil/whs/directives/corres/pdf/416021_vol2.pdf
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Yes, sales is part of the disposition process; however, only during the appropriate stage after the screening process. Assuming FAR Clause 52.245-1 is in your contract, it requires the contractor to follow a specific process for the disposal of property even if the contract is in termination. This means that the contractor should be contacting the cognizant Plant Clearance Officer and coordinating the disposition process. The PLCO is your disposition expert and can ensure that the items are properly screened and disposal actions are accomplished in accordance with the law. The PLCO will be part of the contract administration team for whomever was delegated administration of the contract; whether it is DCMA, DLA, within your agency, etc.
Below as an additional reference link to a similar question sent to us back in 2007.