Contract Closeout—Sample Property Letter


When a contract/order contains FAR 52.245-1 -- Government Property, and FAR 52.245-9 -- Use and Charges, the functional specialist coordinates with the Property Administrator (PA) to ensure efforts to screen, redistribute, or dispose of Government property have been completed. The Administrative Contracting Officer (ACO)/Contract Administrator (CA) must promptly notify the contractor by letter of their responsibility to properly dispose of Government property. This letter supersedes DD FORM 1593 and it is associated with CMC151 (Plant Clearance) property course.

A video on Property Clearance is also available using the link available. Property Clearance video link


If all property actions are not closed, the ACO/CA will send a standardized letter to the contractor notifying them that the contract is physically complete. All property, Government furnished and contractor acquired, assigned to the contract must be transferred to another contract via or by contract modification or dispositioned through the Plant Clearance Officer (PLCO) and PA in a timely manner before it can be closed.

This sample property letter was created to help the ACO/CA with a letter template that can be used to quickly perform the task of notifying the contractor while performing tasks during the contract closeout process in accordance with DCMA policy. The letter will also help to ensure that contractors are in compliance with the terms and conditions of the contracts when it comes to proper disposition of Government property.


Use the sample property letter as a template to notify contractors of the need for disposition of Government property. Information in brackets are editable fields that can be filled in and printed as a matter of record by pressing the Print icon. If needed, the application at Department of Defense Procurement Toolbox web site located at can be used to convert a variety of formats to fillable PDF.

Note: When using the print feature, ensure headers/footers are not selected/disabled when the print settings appear.

Sample Property Letter

[CMO Address Letterhead]
[CMO DoDAAC from user profile IDB and CMT]
[Contractor Name and CAGE Code]
[Address line 1]
[Address line 2]
[City, State, Zip-Code]
Subject: Request for Property Disposition
[Contractor POC Name]:
Reference is made to the following:
  1. Contract #  
  2. FAR Clause 52.245-1 -- Government Property and FAR 52.245-9 -- Use and Charges
         Our records indicate the contract listed in reference a. is physically complete and there may be Government Property (GP) remaining on the contract. Please complete the following steps to facilitate timely closure of the contract. If no property remains, go to step e.
  1. Perform a final physical inventory of GP on this contract.
  2. As needed, submit Property Loss cases using the Property Loss eTool for the Property Administrator (PA) to process for relief of liability.
  3. Notify the ACO via email that the property is required on another contract while simultaneously reporting the property in the Plant Clearance Automated Reutilization Screening System (PCARSS) eTool. PCARSS can create the DoD standard attachment based on contractor submission of data, and is the preferred method. The ACO will be automatically notified by email of creation of the attachment. If needed, the application at Department of Defense Procurement Toolbox web site can be used to convert a variety of formats to fillable PDF.
  4. Report the remaining property items in a separate case in PCARSS eTool so the Plant Clearance Officer (PLCO) can issue Disposition Instructions.
  5. If no property remains or after all property has been transferred, dispositioned, and Property Loss cases closed, report to the assigned PA that you have no remaining property on the contract.
         Should you have any questions, contact the undersigned at [(XXX) XXX-XXXX] or email [].
[Signature block for ACO]