41 C.F.R. Subpart 101–27.2—Management of Shelf-Life Materials
Title 41 - Public Contracts and Property Management
Title 41: Public Contracts and Property Management
PART 101–27—INVENTORY MANAGEMENT
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Subpart 101–27.2—Management of Shelf-Life Materials
§ 101-27.201 Scope of subpart.
This subpart provides for the identification, designation of useful life, and establishment of controls for shelf-life items to minimize loss and insure maximum use prior to deterioration. A shelf-life item is any item possessing deteriorative or unstable characteristics to the degree that a storage period must be assigned to assure the issuance of material that will perform satisfactorily in service.
[32 FR 6493, Apr. 27, 1967]
§ 101-27.202 Applicability.
This subpart 101–27.2 is applicable to all executive agencies except the Department of Defense. The principles and objectives prescribed in this subpart are in consonance with those adopted by the Department of Defense in the establishment of shelf-life procedures for use by military activities.
[32 FR 6493, Apr. 27, 1967]
§ 101-27.203 Program objectives.
In order to assure maximum use of shelf-life items, each executive agency shall:
(a) Identify shelf-life items, including any new items to be placed in inventory, which have a limited shelf-life period.
(b) Establish the shelf-life period of such items and procedures for controlling their procurement, storage, and issue.
(c) Inspect or test certain shelf-life items prior to deterioration to determine if the shelf-life period can be extended.
(d) Conduct inventory management analyses to determine if shelf-life stocks are expected to be utilized prior to the expiration of the original or any extended shelf-life period, and, if not, arrange for transfer of such stock in sufficient time to permit usage prior to deterioration.
(e) Make available for Government-wide distribution, through excess property channels, any stocks which cannot be utilized through normal supply channels.
[32 FR 6493, Apr. 27, 1967]
§ 101-27.204 Types of shelf-life items.
Shelf-life items are classified as nonextendable (Type I) and extendable (Type II). Type I items have a definite storage life after which the item or material is considered to be no longer usable for its primary function and should be discarded. Type II items are those for which successive reinspection dates can be established when the items have a continued usability as determined by examination based upon criteria that have been agreed upon. Examples of Type I items are drugs and medicines with certain characteristics. Examples of Type II items are paint and ink.
[40 FR 59595, Dec. 29, 1975]
§ 101-27.205 Shelf-life codes.
Shelf-life items shall be identified by use of a one-digit code to provide for uniform coding of shelf-life materials by all agencies.
(a) The code designators for shelf-life periods of up to 60 months are as follows:
------------------------------------------------------------------------ Type II Shelf-life period (months) Type I item code item code------------------------------------------------------------------------1................................... A..................... ..........2................................... B..................... ..........3................................... C..................... 14................................... D..................... ..........5................................... E..................... ..........6................................... F..................... 29................................... G..................... 312.................................. H..................... 415.................................. J..................... ..........18.................................. K..................... 521.................................. L..................... ..........24.................................. M..................... 627.................................. N..................... ..........30.................................. P..................... ..........36.................................. Q..................... 748.................................. R..................... 860.................................. S..................... 9------------------------------------------------------------------------
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(b) Code designator 0 is used to identify items not included in a shelf-life program.
(c) Code designator X shall be used to identify critical end-use items, military essential items, and medical items with a shelf life greater than 60 months. Agencies shall establish controls for such materials to prevent issuance of any unserviceable items.
(d) Agencies may also establish controls for materials with a shelf life greater than 60 months that are not identified in paragraph (c) of this section. Such controls should be established only when they are necessary for effective management of the items.
[40 FR 59595, Dec. 29, 1975] § 101-27.206 Procurement of shelf-life materials.
§ 101-27.206-1 General considerations.
In determining requirements for shelf-life items, the following elements should be taken into consideration:
(a) Assigned storage time periods; and
(b) Appropriate contracting techniques for the particular item involved, including specification requirements, industry practices, and storage and delivery procedures.
[40 FR 59595, Dec. 29, 1975] § 101-27.206-2 Identification and shipping requirements.
Manufacturers shall, whenever practicable, be required to mark the unit or container with the month and year of manufacture or production and the batch number on all shelf-life items (60 months or less) procured from other than GSA sources. Whenever practical, the supplier shall be required to ship or deliver material within a given number of months from the date of manufacture or production. These “age on delivery” requirements should not be imposed in such a manner as to unduly restrict competition at any trade level. The following guidelines are suggested as appropriate for most shelf-life items:
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------------------------------------------------------------------------ Shelf-life period Age on delivery------------------------------------------------------------------------25 mos. or more........................... 6 mos.19 to 24 mos.............................. 4 mos.13 to 18 mos.............................. 3 mos.7 to 12 mos............................... 2 mos.6 mos. or less............................ 1 mo. or less.------------------------------------------------------------------------
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[40 FR 59595, Dec. 29, 1975] § 101-27.206-3 Packaging.
To the extent feasible and economical, shelf-life material shall be packaged in such a way as to provide for minimum deterioration.
[40 FR 59595, Dec. 29, 1975] § 101-27.207 Control and inspection.
§ 101-27.207-1 Agency controls.
Agencies shall establish the necessary controls to identify shelf-life items on their stock records (and in other appropriate elements of their supply system), and shall determine the appropriate shelf life for other than GSA managed items. Shelf-life items shall be stored in such a way as to ensure that the oldest stock on hand is issued first. Agencies shall issue the oldest stock of shelf-life items first except when it is not feasible as in shipments to overseas activities.
[40 FR 59596, Dec. 29, 1975] § 101-27.207-2 Inspection.
Type II items remaining in stock immediately before the end of the designated shelf-life period shall be inspected to determine whether the shelf life can be extended, except items having a line item inventory value of $300 or less, or if the cost of inspection or testing is significant in relation to the value of the item. If the material is found suitable for issue on the date of inspection, the shelf life should be extended for a period equal to 50 percent of the original shelf-life period and the next reinspection date established accordingly. Material should be reinspected before the end of each extended shelf-life period and the shelf life extended again up to 50 percent of the original shelf life as long as the material conforms to the established criteria. Material on which the shelf life has been extended shall not be shipped to overseas activities if the time remaining in the extended shelf-life period is relatively short.
[40 FR 59596, Dec. 29, 1975] § 101-27.207-3 Marking material to show extended shelf life.
When the shelf-life period of Type II material (except for critical end-use items as described below) is extended, only the exterior containers of bulk stocks need be annotated or labeled to indicate the date of inspection and date material is to be reinspected. Individual units of issue not classified as having a critical end-use application are not required to be annotated or labeled as long as controls are established to preclude issuance of unserviceable material to a user. (A critical end-use item is any item which is essential to the preservation of life in emergencies; e.g., parachutes, marine life preservers, and certain drug products, or any item which is essential to the performance of a major system; e.g., aircraft, the failure of which would cause damage to the system or endanger personnel.) At the time of shipment, the date of inspection and date for reinspection shall be affixed by label or marked by other means on each unit of issue of Type II items having a critical end-use application.
[42 FR 61861, Dec. 7, 1977] § 101-27.208 Inventory analyses.
(a) An inventory analysis shall be conducted periodically for each Type I item to determine whether the quantity on hand will be used within the established shelf-life period. If the analysis indicates there are quantities which will not be used within the shelf-life period, arrangements shall be made to ensure use of the item(s) within the holding agency or for redistribution to other agencies.
(b) An inventory analysis shall be conducted periodically for each Type II item with a shelf life of 60 months or less to determine whether issue of the quantity on hand is anticipated prior to the expiration of the designated shelf life. This analysis shall be made as follows:
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------------------------------------------------------------------------ Shelf-life period Date of analysis------------------------------------------------------------------------48 to 60 mos............................ 12 to 16 mo. prior to expiration.36 to 48 mos............................ 8 to 12 mo. prior to expiration.18 to 36 mos............................ 6 to 8 mo. prior to expiration.12 to 18 mos............................ 4 to 6 mo. prior to expiration.6 to 12 mos............................. 3 to 4 mo. prior to expiration.Up to 6 mos............................. No analysis required, but special emphasis should be placed on good requirements determination and proper order quantity.------------------------------------------------------------------------
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(1) If the analysis indicates that the quantity on hand will not be issued within the shelf-life period and the cost of inspection or testing is not significant in relation to the line item value, the items shall be inspected to determine if the shelf-life period can be extended.
(2) If the analysis indicates that the quantity on hand will be issued within the shelf-life period, inspection is not required. However, such items shall be viewed again during the last month of the shelf-life period to determine whether quantities are sufficient to warrant inspection. The guidelines in §101–27.207–2 shall be used to determine whether quantities are sufficient to warrant inspection and for extending the shelf-life period.
(3) If an agency does not have an inspection capability and the quantity and value of an indicated overage is sufficiently large to warrant special consideration, arrangements shall be made for qualified inspection or laboratory testing to determine whether the material is suitable for issue.
[40 FR 59596, Dec. 29, 1975] § 101-27.209 Utilization and distribution of shelf-life items.
Where it is determined that specified quantities of both Type I and Type II shelf-life items will not be used within the shelf-life period, such quantities shall be utilized or distributed in accordance with this section.
[35 FR 5010, Mar. 24, 1970] § 101-27.209-1 GSA stock items.
Shelf-life items that meet the criteria for return under the provisions of subpart 101–27.5 of this part may be offered for return to GSA.
[35 FR 12721, Aug. 11, 1970] § 101-27.209-2 Items to be reported as excess.
Shelf-life items which do not meet the criteria in subpart 101–27.5 of this part, which would, if returned to GSA, adversely affect the GSA nationwide stock position, or which are returned to GSA and are determined unsuitable for issue, will be reported as excess under the provisions of part 101–43 of this chapter.
[35 FR 12721, Aug. 11, 1970] § 101-27.209-3 Disposition of unneeded property.
If no transfer is effected and no donation requested, the property shall be assigned for sale, abandonment, or destruction in accordance with part 101–45 of this chapter.
[32 FR 6493, Apr. 27, 1967]
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