---
kind: "section"
citation: "48 C.F.R. § 245.604-1"
title: "48"
number: "245.604-1"
heading: "Sales procedures."
url: "https://uscodex.org/cfr/48/245.604-1"
---

# §245.604-1. Sales procedures.

- (1) **Best value sales approach.** Plant clearance officers shall determine a best value sales approach, to include due consideration for costs, risks, and benefits, e.g., potential sales proceeds.
- (2) **Invitation for bid procedures.** The plant clearance officer may direct the contractor to issue informal invitations for bid (orally, telephonically, or by other informal media), provided—
  - (i) Maximum practical competition is obtained;
  - (ii) Sources solicited are recorded; and
  - (iii) **Informal bids are confirmed in writing.**
- (3) **Sale approval and award.** Plant clearance officers shall—
  - (i) **Evaluate bids to establish that the sale price is fair and reasonable, taking into consideration—**
    - (A) Knowledge or tests of the market;
    - (B) Current published prices for the property;
    - (C) The nature, condition, quantity, and location of the property; and
    - (D) Past sale history for like or similar items;
  - (ii) **Approve award to the responsible bidder whose bid is most advantageous to the Government.** The plant clearance officer shall not approve award to any bidder who is an ineligible transferee, as defined in 252.245-7005, Management and Reporting of Government Property; and
  - (iii) Notify the contractor of the bidder to whom an award will be made within 5 working days from receipt of bids.
- (4) **Negotiated sales.**
  - (i) **Negotiated sales include purchases or retention at less than cost by the contractor.** Negotiated sales may be made when—
    - (A) The plant clearance officer determines that this method is essential to expeditious plant clearance; and
    - (B) **The Government's interests are adequately protected.**
  - (ii) Negotiated sales shall be at fair and reasonable prices, not less than those reasonably expected under competitive sales.
  - (iii) **Conditions justifying negotiated sales are—**
    - (A) No acceptable bids are received under competitive sale;
    - (B) Anticipated sales proceeds do not warrant competitive sale;
    - (C) Specialized nature of the property would not create bidder interest;
    - (D) Removal of the property would reduce its value or result in disproportionate handling expenses; or
    - (E) **Such action is essential to the Government's interests.**
- (5) Plant clearance officers shall consider any special disposal requirements such as demilitarization or trade security control requirements in accordance with DoDM 4160.28-M, Defense Demilitarization Manual, and DoDI 2030.08, Implementation of Trade Security Controls (TSCs) for Transfers of DoD Personal Property to Parties Outside DoD Control, respectively. See PGI 245.6.

## Notes

### Amendments

[86 FR 59871, Oct. 29, 2021, as amended at 88 FR 88537, Dec. 22, 2023]

### Source

Source: 76 FR 52142, Aug. 19, 2011, unless otherwise noted.

### Authority

Authority: 41 U.S.C. 1303 and 48 CFR chapter 1.

### Source

Source: 56 FR 36448, July 31, 1991, unless otherwise noted.

### Amendments

[86 FR 59871, Oct. 29, 2021, as amended at 88 FR 88537, Dec. 22, 2023]