March 27, 2023 - 03:18pm
Discussion
Material Disposition
Question
Question
I have over 2500 line items of material (some containing multiple qtys).
Total value around $7 million
I have prepared my first flat file but can only add 200 lines to a flat file so there will be about 12 schudules to create. This material is mostly small electrical componants that go into a deliverable end item. They are outdated and of no use other than the project they were used for. I have classified it as scrap and PLCO says a FSC code is required but on the file it says FSC is not needed for scrap classification.
Like I said this is my first flat file. I have submited multiple cases in the last 23 years but always manual. Any comments or suggestions are welcome.
Thank you.
This answer was provided by a DCMA HQ SME.
The individual posting the question is correct. The FSC is not required for items in scrap condition per DFARS 252.245-7004 (now 7005). The FSC is certainly a helpful data element for PLCOs in identifying items, but according to the clause, it is not required. Use caution when classifying the items as scrap. Just because the items are “outdated” and not needed for the current requirement does not mean that they meet the definition of scrap. Outdated is a subjective term, meaning that just because it’s not the current technology for the program they are allocable to, does not mean that other programs are not still utilizing that technology. The condition of the item should reflect the actual condition of the item itself. If it works, it is not scrap. Even if it doesn’t work, it may not be considered scrap. It may be economically repairable.
The GFP Module provides a variety of condition codes for the Contractors to choose from when reporting excess property. The code should reflect the actual condition of the item itself.
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