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DSCR

DSCR H6C: INVENTORY TRANSFER

H6C   52.216-9G19     INVENTORY TRANSFER     DSCR (JAN 1997)
AND
H16F31


    (a)  Inventory will be physically transferred from the 
Government depots to the contractor for storage and distribution.  
The Government will retain title to the inventory.  The 
transferred Government inventory may be used to satisfy both 
Government and commercial demands.  Title to the inventory will 
transfer to the contractor upon the contractor requisitioning 
the Government item for commercial sale and Government Defense 
Plant Representative Office (DPRO) approval.  In turn, DFAS 
invoices the contractor.

    (b)  The transfer of Government inventory to the contractor 
will be accomplished in phases.  In the first phase, a quantity 
of Government inventory, which will be determined by the Inventory 
Control Points (ICP), will be blocked from issue at the depot and 
physically transferred to the contractor's facility at Government 
expense.  The contractor and the DPRO Quality Assurance Representative 
will jointly inspect the incoming inventory and incorporate it into 
inventory.  A record of this transfer will be maintained by the 
contractor and provided to the cognizant administration office and 
the ICP.  Any questions concerning the acceptability of the incoming 
stock and/or the amount of inventory received will be resolved 
before the contractor places the stock into its inventory and creates 
the record of the liability for the inventory from the Government.  
The contractor will work with the contracting officers at the 
applicable ICP in resolving issues regarding the receipt and 
acceptance of the DLA inventory.  The Government will bear the 
expense of correction and or disposal of any stock damaged prior 
to acceptance by the contractor.  The contractor will be responsible 
for and bear the expense of any repairs required after acceptance of 
the stock by the contractor.

    (c)  After the contractor accepts the first phase of transferred 
inventory, the Government will start routing requirements to the 
contractor via Electronic Data Interchange for the contractor to fill 
from its inventory.  The Government will then issue a redistribution 
order to transfer the remaining Government inventory to the contractor.  
The contractor will follow the same procedures for receipt of the second 
phase and any subsequent phases of inventory transfer as it did on the 
first phase.

    (d)  Acceptance of inventory by the contractor creates an obligation 
to the Government which may be fulfilled by either supplying material 
to the Government or payment at the contract price plus an agreed upon 
markup for each unit.  Notwithstanding any accident, loss or damage by 
the contractor, the contractor is obligated to provide the Government 
one of the above said reimbursements.

    (e)  The contractor may commingle the Government inventory with on 
hand stock.  The contractor shall be responsible and accountable for all 
Government inventory accepted into stock. The contractor shall provide 
for preservation, protection, maintenance, and repair of the Government 
inventory in accordance with sound industrial practice.  The contractor 
will maintain an accountable paper inventory of the transferred Government 
stock.  The standard Government Furnished Property clauses and FAR Part 45 
are not applicable to this inventory.