18.126
Contractor rent-free use of Government property
Contractors may use certain Government property rent-free only if it is part of a FEMA-approved program and meets FAR 45.301 criteria.
Overview
FAR 18.126 clarifies that rental requirements for Government property do not apply to certain items used by contractors when those items are part of a general program approved by the Federal Emergency Management Agency (FEMA). Specifically, this exemption covers Government production and research property, provided the property meets criteria outlined in FAR 45.301. This provision is designed to facilitate emergency management and response by allowing contractors to use necessary Government property rent-free under specific, FEMA-approved circumstances.
Key Rules
- Exemption from Rental Requirements
- Contractors are not required to pay rent for Government production and research property if it is part of a FEMA-approved general program and meets the criteria in FAR 45.301.
- FEMA Approval Required
- The exemption only applies when the program has explicit FEMA approval.
Responsibilities
- Contracting Officers: Must verify FEMA approval and ensure the property meets FAR 45.301 criteria before authorizing rent-free use.
- Contractors: Must ensure their use of Government property falls within a FEMA-approved program and complies with all relevant criteria.
- Agencies: Oversee and document FEMA approvals and ensure compliance with FAR 45.301.
Practical Implications
- This section streamlines emergency response contracting by removing rental barriers for essential Government property.
- Contractors must be diligent in confirming FEMA approval and compliance with FAR 45.301 to avoid unauthorized use.
- Common pitfalls include assuming all Government property is rent-free or neglecting the need for FEMA program approval.