Demilitarization IND 105 Lesson 14
DEMILITARIZATION TLO 14 - Given the need to dispose of contract Government property requiring demilitarization, describe the process of demilitarization. ELOs: 1. Identify contractual requirements for demilitarization. 2. Identify the funding requirements for demilitarization. 3. Recognize the regulations requiring demilitarization. 4. Recognize the demilitarization codes. 2
Demilitarization ELO 1 Define Demilitarization FAR 52.245-1(a) “Demilitarization” means rendering a product unusable for, and not restorable to, the purpose for which it was designed or is FAR customarily used (also cited in FAR 45.101). 52.245-1 & DFARS 252.245-7004 Reporting, Reutilization, and Disposal defines DFARS “demilitarization” as follows: 252.245- 7004 (1) “Demilitarization” means the act of eliminating the functional capabilities and inherent military design features from DoD personal property. Methods and degree range from removal and destruction of critical features to total destruction by cutting, tearing, crushing, mangling, shredding, melting, burning, etc. 3
Demilitarization ELO 1 Define Demilitarization cont. • DoDM 4160.28-V2 definition is: The act of eliminating the functional capabilities and inherent military design features from DoD personal property DoDM 4160.28 that requires certification and verification. - V2 • Methods and degree range from removal and destruction of critical features to total destruction by cutting, crushing, shredding, melting, burning, etc. • DEMIL is required to prevent property from being used for its originally intended purpose and to prevent the release of inherent design information that could be used against the United States. • DEMIL applies to material in both serviceable and unserviceable condition. 4
Demilitarization ELO 1 Examples of DEMIL that my be specifically called out in a contract: • Utilize Defense Logistic Agency Disposal Services • Special requirements for sensitive property • Direction to utilize a third contractor for special DEMIL 5
Demilitarization ELO 1 Where in a contract, will you find DEMIL requirements or direction that may be specifically identified? • Section B CLIN • Section H • Statement of Work • Performance Work Statement In some cases the performance of DEMIL may be a stand alone contract. 6
Funding for DEMIL ELO 2 The Contractor is responsible for demilitarization! The Government Role… – PLCO ( or Qualified Representative ) shall witness the actual physical act of demilitarization – PLCO shall Certify that DEMIL was accomplished in accordance with DoDM 4160.28 – Demilitarization must be witnessed and verified by a Government representative using DRMS Form 145 or equivalent. – This shall be done in writing. 7
Funding for DEMIL ELO 2 Funding Requirements for demilitarization • The Contractor may be entitled to an equitable adjustment if the Contractor is required to demilitarize Government Property and the DEMIL FAR is outside their normal performance capability. 52.245- 1 Contractor Inventory Disposal & Disposition Instructions (j)(7)(ii) • The CO may require the Contractor to demilitarize the property prior to shipment or disposal. In such cases, the Contractor may be entitled to an equitable adjustment under paragraph (i) of the Government Property Clause. • Funding for demilitarization is via the contract or approval of the Contracting Officer. 8
DEMIL Requirements ELO3 Contractual Requirement for DEMILITARIZATION: • Demilitarization must be authorized in the contract via a clause or special provision. FAR 52.245- 1 (j) Disposition Instructions (ii) The CO may require the Contractor to demilitarize, which may result in a request for equitable adjustment! As prescribed in 245.107(e), use the following clause: 252.245-7004 Reporting, Reutilization, and Disposal.(DEC 2017). 9
DEMIL Requirements ELO3 Reporting, Reutilization, and Disposal.(DEC 2017) DFARS (d) Demilitarization, mutilation, and destruction. If demilitarization, mutilation, 252.245- or destruction of contractor inventory is required, the Contractor shall 7004 demilitarize, mutilate, or destroy contractor inventory, in accordance with the terms and conditions of the contract and consistent with Defense Demilitarization Manual, DoDM 4160.28, edition in effect as of the date of this contract. The plant clearance officer may authorize the purchaser to demilitarize, mutilate, or destroy as a condition of sale provided the property is not inherently dangerous to public health and safety. 10
DEMIL Requirements ELO3 Reporting, Reutilization, and Disposal.(DEC 2017) (cont.) (e) Classified Contractor inventory. The Contractor shall dispose of classified DFARS 252.245- contractor inventory in accordance with applicable security guides and 7004 regulations or as directed by the Contracting Officer. (f) Inherently dangerous Contractor inventory. Contractor inventory dangerous to public health or safety shall not be disposed of unless rendered innocuous or until adequate safeguards are provided. 11
DEMIL Requirements ELO3 Reporting, Reutilization, and Disposal.(DEC 2017) (cont.) (g) Contractor inventory located in foreign countries. Consistent with contract DFARS 252.245- terms and conditions, property disposition shall be in accordance with foreign 7004 and U.S. laws and regulations, including laws and regulations involving export controls, host nation requirements, Final Governing Standards, and Government-to-Government agreements. The Contractor's responsibility to comply with all applicable laws and regulations regarding export-controlled items exists independent of, and is not established or limited by, the information provided by this clause. 12
DEMIL Requirements ELO3 Reporting, Reutilization, and Disposal.(DEC 2017) (cont.) (j) Restrictions on purchase or retention of Contractor inventory. (9) The following terms and conditions shall be included in sales contracts DFARS involving the demilitarization, mutilation, or destruction of property: 252.245- 7004 (i) Demilitarization, mutilation, or destruction ON Contractor or subcontractor premises. Item(s) ______ require demilitarization, mutilation, or destruction by the Purchaser. Insert item number(s) and specific demilitarization, mutilation, or destruction requirements for item(s) shown in Defense Demilitarization Manual, DoDM 4160.28-M , edition in effect as of the date of this contract. Demilitarization shall be witnessed and verified by a Government representative using DRMS Form 145 or equivalent. 13
DEMIL Requirements ELO3 Reporting, Reutilization, and Disposal.(DEC 2017) (cont.) (ii) Demilitarization, mutilation, or destruction OFF Contractor or subcontractor premises. DFARS 252.245- (A) Item(s) ______ require demilitarization, mutilation, or destruction by the 7004 Purchaser. Insert item number(s) and specific demilitarization, mutilation, or destruction requirements for item(s) shown in Defense Demilitarization Manual, DoDM 4160.28 , edition in effect as of the date of this contract. Demilitarization shall be witnessed and verified by a Government representative using DRMS Form 145 or equivalent. 14
DEMIL Requirements ELO3 15
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DEMIL Requirements ELO3 Reporting, Reutilization, and Disposal.(DEC 2017) (cont.) (B) Property requiring demilitarization shall not be removed, and title shall not pass to the Purchaser, until demilitarization has been accomplished and DFARS verified by a Government representative. Demilitarization will be 252.245- 7004 accomplished as specified in the sales contract. Demilitarization shall be witnessed and verified by a Government representative using DRMS Form 145 or equivalent. (C) The Purchaser agrees to assume all costs incident to the demilitarization and to restore the working area to its present condition after removing the demilitarized property. 18
DEMIL Requirements ELO3 Reporting, Reutilization, and Disposal.(DEC 2017) (cont.) (iii) Failure to demilitarize. If the Purchaser fails to demilitarize, mutilate, or destroy the property as specified in the contract, the Contractor may, upon FAR giving 10 days written notice from date of mailing to the Purchaser– 52.245-1 & DFARS (A) Repossess, demilitarize, and return the property to the Purchaser, in 252.245- 7004 which case the Purchaser hereby agrees to pay to the Contractor, prior to the return of the property, all costs incurred by the Contractor in repossessing, demilitarizing, and returning the property; 19
DEMIL Requirements ELO3 Reporting, Reutilization, and Disposal.(DEC 2017) (cont.) (B) Repossess, demilitarize, and resell the property, and charge the DFARS defaulting Purchaser with all costs incurred by the Contractor. The Contractor 252.245- shall deduct these costs from the purchase price and refund the balance of 7004 the purchase price, if any, to the Purchaser. In the event the costs exceed the purchase price, the defaulting Purchaser hereby agrees to pay these costs to the Contractor; or 20
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