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    Is DLA the exclusive agency for disposing/recycling excess government property? Is so, can you please cite a reference? If not, can an agency make a contract independently with a contractor for disposal services and can the agency receive any funds from the sale of that property?


    Since you speak of Defense Logistics Agency and thereby infer the use of DLA Disposition Services, we’ll approach the answer on the basis that you are with a DoD agency.
    Since you didn’t specify whether this Government property was both owned and in the possession of an agency or Government property attached to a Government contract we’ll therefore have to provide several answers to suit each scenario.
    DLA Disposition Services (DLA) has the exclusive responsibility for disposal of agency property.  What follow is the logic as well as the policy guidance (reference).
    All Government property (and therefore disposition) falls under GSA and the Federal Management Regulation (FMR), formerly known as the Federal Property Management Regulation.  I call your attention to DOD 4160.21-M Defense Materiel Disposition Manual – Aug 1997.  The FORWARD of the document contains the following letter from OFFICE OF THE UNDER SECRETARY OF DEFENSE, AT&L dated 18 AUG 1997 containing the following guidance:
    This manual is issued under the authority of DoD 4140.1-R, “Department of Defense Materiel Management Regulation.” Its purpose is to set forth DoD policy and prescribe uniform procedures for the disposition of DoD personal property. Except where otherwise indicated, this manual is applicable to all elements of the DoD and their subordinate commands, installations, and activities.
    In addition, the Introduction section of DoD 4160.21-M provides additional guidance as follows:
    A.  GENERAL, This manual, authorized by DoD 4140.1-~ Department of Defense (DoD) Materiel Management Regulation, implements the requirements of the Federal Property Management Regulation (FPMR), and other laws and regulations as appropriate, as they apply to the disposition of excess, surplus, and foreign excess personal property (FEPP). It takes precedence over conflicting instructions within the DoD. The Federal Property and Administrative Services Act of 1949, as amended (Act of 30 June 1949,63 Stat. 377,40 United States Code [USC] 471 ), hereafter referred to as the “Act”, and the FPMR shall take precedence over this manual, unless otherwise provided by statute.
    1. The contents of this manual are applicable to all elements of the DoD, their subordinate commands, installations and activities, worldwide, except as otherwise indicated. It applies to the disposition of excess, surplus and FEPP, and other property as authorized. Provisions of this manual affecting Defense Reutilization and Marketing Service (DRMS) operations are also applicable to Federal civil agency excess and surplus property turned-in to a Defense Reutilization and Marketing Office (DRMO), for disposition under applicable Interagency Agreements.
    Finally, Chapter 2 of DoD 4160.21-M provides additional guidance as follows:
    1. The Act assigned the responsibility for the supervision and direction over the disposition of excess and surplus property to the Administrator of General Services. The Act further assigned the responsibility for supervision and direction over the disposition of DoD FEPP to the Secretary of Defense.
    2. The Administrator of General Services delegated to the Secretary of Defense the responsibility for the sale and final disposition of surplus personal property which the Administrator determines is not needed for transfer as excess to other Federal agencies or for donation as surplus to authorized donees. The Secretary of Defense also has the responsibility, under the “Act,” for internal screening and redistribution of DoD property among the services and defense agencies and for reporting such property as excess to the General Services Administration (GSA).
    3. The Secretary of Defense has assigned to the Director, Defense Logistics Agency (DLA), responsibility for the administration of the Defense Materiel Disposition Program, to include the PMRP and the Defense DEMIL Program.
    Government property placed on a contract and in possession of a contractor is governed by FAR clause 52.245-1.  Under this clause the contractor is required to have a property management system.  Part of the contractor property system requirement includes the responsibility for disposal of property as outline in 52.245-1(j), Contractor inventory disposal.  The contractor is required to use the services of a Plant Clearance Officer assigned to the contractor as part of the contract administration delegation process unless otherwise stipulated by the contracting officer, in the contract.  Proceeds from such disposition are distributed according to FAR 52.245-1(j)(9):
    Disposal proceeds. As directed by the Contracting Officer, the Contractor shall credit the net proceeds from the disposal of Contractor inventory to the contract, or to the Treasury of the United States as miscellaneous receipts.
    Typically, the only time the contracting officer designates something other than a DCMA PLCO is when contract performance occurs on a post, base, camp or station.  In which case DLA Disposition Services may be designated for such disposal in lieu to the contractor’s property system called for under FAR 52.245-1.  Proceeds from such disposition are retained by DLA Disposition Services (DLA).
    ·  DOD 4160.21-M, Defense Materiel Disposition Manual – Aug 1997
    ·  FAR 52.245-1, Government Property

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