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    I have two questions. First question, would the contractors be required to utilize PCARSS prior to DLAD. Is it a one or the other disposal requirement? Would BER/BCM aircraft components, scrap or excess property go into PCARSS for additional screening prior to DLAD ETID for disposal? Second question. Would the proper guidebook for auditing the contractors be the Guidebook for Contract Property Administration since it replaces the DoD 4161.2-M Manual that is listed in the contract enclosures?


    Answer

    FAR 52.245-1(j) begins by expressing that disposition instructions provided in the contract take priority. Therefore, if there are discrete disposition instructions in the contract that require the Contractor to use DLADS for disposition the Contractor must comply. Taking your first question at face value, it is not necessarily a one or the other situation. That is completely dependent upon how the contract is written. For instance the contract may direct the Contractor to use DLADS for certain items of Government property and not address others at all. Those items for which disposal is not specifically addressed in the contract would require disposal using FAR 52.245-1(j). Since the contracts include FAR 52.245-1 they should also include DFARS 252.245-7004, which requires the use of PCARSS (absent other disposition instructions specified in the contract terms and conditions). DFARS 252.245-7004 incorporates the requirement for the Contractor to use DoDM 4160.28, which incorporates by reference DoDM 4160.21. If there are no discrete disposition instructions provided in the contracts, and the contracts do not include DFARS 252.245-7004 and are not modified to add the clause, the Contractor has to submit a SF 1428 to the Plant Clearance Officer or authorizing official. However, the omission of DFARS 252.245-7004 does not prevent the Contractor from using PCARSS voluntarily.

    To revisit your first question within the context of the second part of the question regarding BER/BCM aircraft components, scrap or excess property, if the contract directs disposition of property using DLADS, it does not have to be screened using PCARSS first. This would be a duplication of effort for both the Government and Contractor. It should be noted that disposal of all property, including scrap, should be annotated in the Contractor’s property management procedures. The biggest advantage of processing the disposal of property through the Plant Clearance Officer/PCARSS is that net proceeds from sales of scrap and surplus property can be credited to the contract. That is not the case when using DLADS.

    Regarding your second question, DoD Instruction 4161.02 cancels DoD 4161.2-M and instructs DoD Components to use the Guidebook for Contract Property Administration. You should be using the Guidebook in addition to your organization’s policies and procedures to audit contractor property management systems. DoDI 4161.02 also cancels DoDI 4161.2. DoDI 4161.02 establishes policy, assigns responsibilities, and prescribes procedures in accordance with FAR Part 45 and DFARS Part 245. If you meant that DoD 4161.02 is included in the contracts it is unclear why it would be since FAR Part 45 and DFARS Part 245 include policy and direction for the Government, not the Contractor.

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