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10 - Dispose of property that is no longer required

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Pre-Award stage

Development through Deployment stage

Sustainment/Disposal stage

  1. Review Contract and Accept Contract Assignments
  2. Establish Property Admin Records
  3. Report Contract Deficiencies
  4. Construct a Risk Analysis
  5. Establish Property Audit Objectives
  6. Plan a PMSA
  7. Conduct a PMSA
  8. Respond to Reports of Property Loss
  9. Respond to Special Requests
  10. Dispose of property that is no longer required


Bring the contract property account for excess property to an auditable final zero balance


  • Policies and procedures for reporting, reutilization, and disposal: FAR 45.6
  • Policy for reporting, redistribution, and disposal of contractor inventory: DFARS 245.6
  • Plant Clearance DCMA Manual 2501-04


  1. Receive contractor report of excess (“inventory schedule”) via PCARSS
  2. Review report in PCARSS for acceptability, and accept if appropriate. This opens a plant clearance case (PCC).
  3. Apply the screener rule in PCARSS
  4. Create a case in PCARSS
  5. Verify details of report using SF 1423, and then enter into PCARSS
  6. Complete PCC screening in PCARSS
  7. Evaluate and select disposal options, and input code into PCARSS for remaining disposal actions (e.g., sell, donate, abandon) (see section 45.603 and 45.604-1 of DFARS 245.6)
  8. Notify contractor of final disposal directions (see templates below) 
  9. Support contractor’s compliance, and document completion of all disposal actions
  10. Close PCC in PCARSS (see DFARS 45.605)


  • PCARSS resource page (includes WBT, Flat File Transfer, Template, User manual, and student resources)
    • Detailed PCARSS tutorials
    • PCARSS User manual
  • Templates for notifying contractor of final disposal directions (list is not comprehensive)
    • Donate to school (Executive Order 12999) or nonprofit
    • Abandon
    • Demilitarize
    • Sale as scrap
    • Scrap to overhead
    • Ship according to Government directions
    • Transfer in place to another contract
    • Informal sale
    • Formal sale
    • Hard drive sanitation
    • Turn in to DLA Disposal Services (formerly DRMO)

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