48 CFR 752.245-71 - Title to and care of property.
"(c) (2) For non-expendable property titled to the Cooperating Government, the Contractor shall, within 90 days after completion of this contract, or at such other date as may be fixed by the contracting officer, submit an inventory schedule covering all items of non-expendable property under its custody, which have not been consumed in the performance of this contract. The Contractor shall also indicate what disposition has been made of such property."
My reading of this clause is that the Cooperating Government (one on a bilateral obligating agreement) works with the Contractor to dispose of/reuse non-expendable property. Then, the COR/CO should be notified of the disposition after the fact and it does not need to necessarily follow the priority list in FAR 45.602-2.
What do you think? Should FAR 45.602-2 be followed and should the COR review and CO approve of the disposition plan, or, in this case, do the Contractor and Cooperating Government have discretion?