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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, legal department, and/or Government partners, as appropriate.
First, the timelines in the Government property clause are not tied to FAR 4.804*, but rather are embedded within the Government property clause, FAR 52.245-1. These timeframes with respect to disposition are:
FAR 52.245-1(j)(3)(i) The Contractor shall submit inventory disposal schedules to the Plant Clearance Officer no later than.
(A) 30 days following the Contractor’s determination that a property item is no longer required for performance of this contract;
(B) 60 days, or such longer period as may be approved by the Plant Clearance Officer, following completion of contract deliveries or performance; or
(C) 120 days, or such longer period as may be approved by the Termination Contracting Officer, following contract termination in whole or in part.
FAR 52.245-1(j)(6)(i) The Contractor shall store the property identified on an inventory disposal schedule pending receipt of disposal instructions. The Government’s failure to furnish disposal instructions within 120 days following acceptance of an inventory disposal schedule may entitle the Contractor to an equitable adjustment for costs incurred to store such property on or after the 121st day.
The next place to go is your Property Management System procedures that are “necessary for effective and efficient” control of Government property (FAR 52.245-1(b)(1)). No one else knows your products, customers, and acquisition strategies and timelines better than you. How and when you construct your utilization reviews to determine when items will become excess to current contract performance (FAR 52.245-1(f)(1)(viii)(A)) and when you conduct predisposal analysis to determine if items have the potential to fulfill requirements under other contracts (FAR 52.245-1(j)(1)(i)) is heavily under your control, subject to evaluation by the Property Administrator that it meets contractual requirements and effectively mitigates Risk to the USG. The earlier you determine if or when to engage with the Government on smart business arrangements to ensure win-win outcomes that otherwise comply with contractual requirements, specifically disposition timelines, the more likely for success. These business arrangements range the gamut from transfer to another current effort with a valid need, storage contracts, return to customer, or input into PCARSS. These engagements do NOT change your contractual requirement to submit inventory disposal schedules within the required timeframes.
It is in the Government’s and Industry’s best interest to take advantage of Acquisition Planning (FAR Part 7 - USG) and excess identification and predisposal (FAR 52.245-1 - contractor) requirements early to ensure these contractual timelines do not impact less optimal business arrangements or untimely close-out.
*Timely contract closeout is a significant DoD issue (e.g., GAO-17-738) and we should endeavor not to add to the problem through failure of timely planning and execution of Government property disposition.
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