Government Property
FAR Part 45 provides the comprehensive framework for managing, using, and disposing of government property in contractor possession, ensuring accountability and compliance throughout the contract lifecycle.
Overview
FAR Part 45 establishes the policies, procedures, and responsibilities for managing government property in the possession of contractors. It covers the full lifecycle of government property, including its definition, accountability, use, rental, title, administration, reporting, reutilization, and disposal. The part is organized into subparts that address general requirements, solicitation and evaluation procedures, authorization for use and rental, title to property, support for property administration, and processes for reporting, reutilization, and disposal. This structure ensures that both government agencies and contractors understand their obligations regarding government-furnished and contractor-acquired property, promoting accountability and proper stewardship throughout the contract lifecycle.
Key Rules
- General Requirements
- Defines government property, outlines policy, and assigns responsibility and liability for its management.
- Solicitation and Evaluation Procedures
- Details how government property is addressed in solicitations and evaluated during contract award.
- Use and Rental Authorization
- Specifies when and how contractors may use or rent government property, including special rules for foreign governments and research programs.
- Title to Government Property
- Clarifies when title to property passes to the government or remains with the contractor.
- Property Administration Support
- Provides guidance on supporting property administration at prime and subcontractor locations.
- Reporting, Reutilization, and Disposal
- Outlines requirements for reporting, reutilizing, and disposing of government property, including sales and abandonment procedures.
Responsibilities
- Contracting Officers: Must ensure proper clauses are included, monitor contractor compliance, and oversee property administration.
- Contractors: Must establish compliant property management systems, maintain accountability, and follow procedures for use, reporting, and disposal of government property.
- Agencies: Oversee property management, provide support for administration, and ensure compliance with reporting and disposal requirements.
Practical Implications
- FAR Part 45 exists to safeguard government assets and ensure their proper use and disposition.
- It impacts daily contracting by requiring robust property management systems and clear accountability.
- Common pitfalls include inadequate recordkeeping, improper use or disposal, and failure to comply with reporting requirements.