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    What is the requirement for processing transfers through PCARSS rather than just getting mods from PCO(s)? For the contractor and for DCMA? Additionally, what is our path forward when PCOs do not process the transfers within 60 days and the excess property is not in PCARSS? And lastly, is property that can be transferred to another contract defined as excess. Some have stated if it can be transferred it is not excess to contractual need. They are interpreting contractual in the plural sense.


    Answer

    First let’s define excess personal property – Per FAR 2.101 means any personal property under the control of a Federal agency in which the agency head determines is not required for its needs or for the discharge of its responsibilities. The Government Property Clause FAR 52.245-1 (f)(1)(viii)(A) Utilization states; “The Contactor shall promptly disclose and report Government Property in its possession that is excess to contract performance”.  If any Government Property is no longer needed on a contract then it is considered “Excess” to contract performance and must be reported. Excess can be determined at both the contract level as well as at the agency level.  If in fact there is a need on another contract for an excess item, then it can be transferred once approved by the cognizant Administrative Contracting Officer (ACO) or Contracting Officer(s) (CO).
     
    In regards your questions on the requirement for processing transfer through PCARSS there is no DoD regulation that mandates the processing of MODs through PCARSS.  In fact, contract modifications do not get processed through PCARSS, only the request to transfer property to another contract. The contractors’ requirements come from two clauses FAR 52.245-1 & DFARS 252.245-7004 FAR 52.245-1(j)(1)(i) requires the contractor to notify the CO if property can fulfill the requirements of another Government contract with excess property. FAR 52.245-1(j)(2)(i)  Requires the contractor to use standard form 1428 to identify and report all remaining Government Furnished Property and Contractor Acquired Property at contract closeout. DFARS 252.245-7004 requires the contractor to complete the 1428 Inventory Schedule B within the PCARSS (Clauses included below).
     
     
     
    Here is how the process works for those who may not be familiar with PCARSS.  Assuming the contract in question contains DFARS Clause 252.245- 7004, the contractor completes the SF1428 within the PCARSS to report excess property and identify transfer of accountability to another Government contract. An automated email is sent to the ACO/CO notifying them that the contractor has identified a need on another contract and PCARSS also sends the ACO/CO the “smart attachment” required by DFARS PGI 245.103-71.  The contractor must then send a formal written request to the ACO/PCO to transfer accountability of the property. The ACO/CO can approve or disapprove the transfer in PCARRS.  If the PA, ACO and PCO(s) concur that a firm requirement exists on the new contract the ACO/PCO(s) have a FAR 45.106 requirement to complete the modifications on both the losing and gaining contracts in accordance with DFARS PGI 245.103-71. The modifications will be executed per their own individual agency regulations and uploaded and processed through EDA/ Wide Area Work Flow (WAWF). Modification is not a contractor requirement it is only an ACO/CO requirement; however, contractors CANNOT change the contract accountability to the follow-on contract until both contract modifications have been complete.  The contract modifications are the legal documents that transfer accountability.
     

    Your final question: What is our path forward when PCOs do not process the transfers within 60 days and the excess property is not in PCARSS?  The only path forward is for the contractor to follow the terms of the contract which means that no records are to be changed pertaining to contract accountability or closeout. If there is no modification the subject Government property must remain in the contractors’ records, and cannot be used on the identified follow-on contract unless prior authorization for use was already provided via a rent free/noninterference use modification. If the contractor experiences a burden directly related to the inaction of the CO they have the ability to request an equitable adjustment under FAR 52.245-1(i).  The only other remedy the contractor has is to request storage costs on assets that have not been processed in accordance with the FAR 52.245-1(j((6)(i). Ultimately failure to expeditiously modify the contract will most likely impact the timely closeout of the contract and can affect performance of the follow-on.  
     
    FAR 52.245-1(j)(1)(i) If the Contractor determines that the property has the potential to fulfill requirements under other contracts, the Contractor, in consultation with the Property Administrator, shall request that the Contracting Officer transfer the property to the contract in question, or provide authorization for use, as appropriate.”
    FAR 52.245-1(j)(2)(i) Absent separate contract terms and conditions for property disposition, and provided the property was not reutilized, transferred, or otherwise disposed of, the Contractor, as directed by the Plant Clearance Officer or authorizing official, shall use Standard Form 1428, Inventory Disposal Schedule or electronic equivalent, to identify and report— (A) Government-furnished property that is no longer required for performance of this contract;  (B) Contractor-acquired property, to which the Government has obtained title under paragraph (e) of this clause, which is no longer required for performance of that contract; and  (C) Termination inventory.

    DFARS 252.245-7004 (b) Inventory disposal schedules.  Unless disposition instructions are otherwise included in this contract, the Contractor shall complete SF 1428, Inventory Schedule B, within the Plant Clearance Automated Reutilization Screening System (PCARSS).”

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