The Letterkenny Army Depot (LEAD) contract will be evaluating/negotiating/awarding CLIN 0007 which is the material management fee for inactive items to be warehoused. CLIN 0007 is part of the larger Industrial Product Support Vendor (IPV) contract at LEAD. CLIN 0007 is material management fee for warehousing Army-owned inventory at the contractor's warehouse. The quantity of items assigned to this CLIN may change monthly as it is at the discretion of LEAD to identify the number of inactive items assigned to CLIN 0007. CLIN 0007= Material Management Fee for warehousing inactive Army-owned inventory at the contractor's warehouse to include warehousing and physical inventory control of the material. For inactive material, the contractor shall move that inventory to its warehouse for management/tracking and disposition in accordance with the contract. The contractor shall conduct a kind, count, condition inspection of this material prior to warehousing. On an annual basis, until 12 months before contract expiration, any Army-owned items on the Schedule of Supplies that have been inactive for one year (365 days) and are not projected to be active in the upcoming contract year shall be liquidated by the Contractor." Items that meet the above criteria will be taken off of CLIN 0007. Upon direction by the Army COR. Army COR will determine how Army-owned items will be liquidated.