35.014
Government property and title
FAR 35.014 sets clear rules for property control and title to equipment in R&D contracts, especially for nonprofits, requiring approvals, compliance with civil rights, and adherence to government property clauses.
Overview
FAR 35.014 outlines the requirements for managing government property and determining title to equipment and tangible personal property acquired under research and development (R&D) contracts, particularly those with nonprofit institutions of higher education and nonprofit research organizations. It references FAR Part 45 for property control and provides specific rules for vesting title to equipment purchased with government funds, including cost thresholds, approval requirements, and conditions for vesting title in the contractor or the government. The section also incorporates civil rights compliance as a prerequisite for vesting title and clarifies that these policies are implemented through Government Property contract clauses.
Key Rules
- Property Control Requirements
- All R&D contracts must follow FAR Part 45 for establishing and maintaining control over government property.
- Title to Equipment for Nonprofits
- For contracts with nonprofit research institutions, contractors may retain title to equipment under $5,000 (or lower agency threshold) with advance approval; for equipment $5,000 or more, title vesting is determined by contract terms and may vest in the contractor or government.
- Depreciation and Use Charges
- If title vests in the contractor, depreciation or use charges for that equipment are not allowable on any government contract.
- Government Installation Equipment
- If equipment is needed at a government installation after contract completion, title need not transfer to the contractor.
- Civil Rights Compliance
- Contractors must agree to non-discrimination requirements before title can vest.
Responsibilities
- Contracting Officers: Ensure property control, approve title vesting, and include appropriate clauses.
- Contractors: Maintain property control, obtain approvals, comply with title and civil rights requirements, and avoid unallowable charges.
- Agencies: May set lower thresholds and must enforce compliance and oversight.
Practical Implications
- Ensures clear rules for property ownership and control in R&D contracts, reducing disputes.
- Contractors must be proactive in seeking approvals and understanding title implications.
- Non-compliance with civil rights or property rules can jeopardize title rights and contract payments.