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  • Question

    Is a PCO email to a DCMA ACO/Contracts Supervisor with scrap instructions on BER assets contractually sufficient and binding as a document for the contractor to action?


    Answer

    The following response is based solely on the question and background information provided. As we do not have the entire facts particular to your contract, program, and situation, we suggest you discuss with your contracting team, program manager and/or legal department as appropriate.
    First to the general question if an email is sufficient for action.  Looking at FAR 52.245-1, Government Property (the FAR clause that covers disposition of Government property) in par. (l) states:
    (l) Communication. All communications under this clause shall be in writing.
    FAR 2.101 defines that as:
    “In writing,” “writing,” or “written” means any worded or numbered expression that can be read, reproduced, and later communicated, and includes electronically transmitted and stored information.
    This seems to validate the PCO email to authorize an action… BUT WAIT, we must look at the rest of the 52.245-1; related clause at DFARS 252.245-7004, Reporting, Reutilization, and Disposal; and more of the SOW.
    So, you may proceed … to the next line in the SOW under par 7(d):  “Any disposal action ordered by the PCO shall be performed by the CAV Reporter in accordance with applicable regulations and DCMA disposal procedures and requirements.
    BLUF:  In general, report the items to the Plant Clearance Officer (PLCO) in PCARSS.  Your PLCO will consider and provide any special disposal instructions such as demilitarization or trade security control requirements.  In certain circumstances, the contract may authorize the initiation of the scrap process, if special disposal instructions are not required.
     
    The Order should incorporate the following relevant clauses to disposition:
    FAR 52.245-1, Government Property and DFARS 252.245-7004, Reporting, Reutilization, and Disposal.
    Germane portions on the clauses are below:
    FAR 52.245-1
    (j) Contractor inventory disposal. Except as otherwise provided for in this contract, the Contractor shall not dispose of Contractor inventory until authorized to do so by the Plant Clearance Officer or authorizing official.
    (j)(3)(ii) … The processing and disposal of other types of Government-owned scrap [other than production scrap] will be conducted in accordance with the terms and conditions of the contract or Plant Clearance Officer direction, as appropriate.
    DFARS 252.245-7004
    (a)
    1)  “Demilitarization” means the act of eliminating the functional capabilities and inherent military design features from DoD personal property…
    (4)  “Scrap” means property that has no value except for its basic material content. For purposes of demilitarization, scrap is defined as recyclable waste and discarded materials derived from items that have been rendered useless beyond repair, rehabilitation, or restoration such that the item’s original identity, utility, form, fit, and function have been destroyed…Intact or recognizable components and parts are not “scrap.” 
    (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).  Information on PCARSS can be obtained from the plant clearance officer and at http://www.dcma.mil/WBT/PCARSS/.
    (d)  Demilitarization, mutilation, and destruction.  If demilitarization, mutilation, or destruction of contractor inventory is required, the Contractor shall demilitarize, mutilate, or destroy contractor inventory, in accordance with the terms and conditions of the contract and consistent with Defense Demilitarization Manual, DoDM 4160.28-M, edition in effect as of the date of this contract...
    (h)  Disposal of scrap. 
      (1)  Contractor with scrap procedures.
      (i)  The Contractor shall include within its property management procedure, a process for the accountability and management of Government-owned scrap. The process shall, at a minimum, provide for the effective and efficient disposition of scrap, including sales to scrap dealers, so as to minimize costs, maximize sales proceeds, and, contain the necessary internal controls for mitigating the improper release of non-scrap property.
      (ii)  The Contractor may commingle Government and contractor-owned scrap and provide routine disposal of scrap, with plant clearance officer concurrence, when determined to be effective and efficient.
     If you use PCARSS, the requirement to update the IUID Registry as directed at DFARS 252.211-7007 is exempted at (g)(2)(i):
      (2)  The Contractor need not report to the IUID Registry those transactions reported or to be reported to the following DCMA etools:
      (i)  Plant Clearance Automated Reutilization and Screening System (PCARSS);
    So unless otherwise directed in the contract, or agreed to by the PLCO, follow DFARS 252.245-7004 (b) and submit Inventory Schedule(s) within PCARSS.  If unsure, you may check with your assigned PLCO (DCMA-delegated contract) who can be found here:  https://pubmini.dcma.mil/CMT_View/CMT_View_Search.cfm

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