General
FAR Subpart 45.1 establishes the foundational rules and responsibilities for managing Government property in contractor possession, requiring robust property management and accountability throughout the contract lifecycle.
Overview
FAR Subpart 45.1 – General provides the foundational framework for managing Government property in the possession of contractors. It establishes definitions, policies, and general requirements for the use, care, accountability, and disposition of Government-furnished and contractor-acquired property. This subpart outlines the responsibilities and liabilities of both contractors and Government personnel, sets expectations for contractors’ property management systems, and details procedures for transferring accountability and incorporating relevant contract clauses. It serves as the entry point for understanding how Government property must be handled throughout the contract lifecycle.
Key Rules
- Definitions (45.101)
- Clarifies key terms related to Government property management.
- Policy (45.102)
- Establishes the overarching policy for the use and management of Government property by contractors.
- General (45.103)
- Provides general requirements and principles for handling Government property.
- Responsibility and Liability (45.104)
- Details contractor and Government responsibilities and liabilities for property.
- Property Management System Compliance (45.105)
- Requires contractors to maintain compliant property management systems.
- Transferring Accountability (45.106)
- Outlines procedures for transferring property accountability between parties.
- Contract Clauses (45.107)
- Specifies required contract clauses related to Government property.
Responsibilities
- Contracting Officers: Ensure proper clauses are included, oversee contractor compliance, and manage property accountability.
- Contractors: Maintain compliant property management systems, safeguard Government property, and follow procedures for accountability and transfer.
- Agencies: Provide oversight, conduct reviews, and enforce property management policies.
Practical Implications
- This subpart exists to protect Government assets and ensure efficient, accountable use of property by contractors.
- It impacts daily operations by requiring robust property management systems and clear accountability.
- Common pitfalls include inadequate recordkeeping, failure to comply with transfer procedures, and insufficient property controls.