Policy
Government property should only be provided to contractors when fully justified, with contractors generally expected to supply their own resources.
Overview
FAR 45.102 establishes the policy regarding the provision and use of Government property in the performance of contracts. The regulation emphasizes that contractors are generally expected to supply all property needed to fulfill contract requirements. Government property should only be provided to contractors when it is clearly justified by specific criteria, such as being in the Government’s best interest, offering significant overall benefit, not increasing risk, and when requirements cannot be met otherwise. The inability or unwillingness of a contractor to provide its own resources is not a valid justification for the Government to furnish property. There is an exception for contracts involving repair, maintenance, overhaul, or modification, which are not subject to the strict justification requirements. Additionally, restrictions are placed on installing Government property on contractor-owned real estate to prevent it from becoming nonseverable, unless specifically authorized by the head of the contracting activity.
Key Rules
- Contractor-Supplied Property
- Contractors must ordinarily provide all property necessary for contract performance.
- Justification for Government Property
- Contracting officers may only provide Government property if it is in the Government’s best interest, offers significant benefit, does not increase risk, and is otherwise necessary.
- Contractor Inability Not Sufficient
- Contractors’ inability or unwillingness to supply property is not a valid reason for the Government to provide it.
- Exception for Certain Contracts
- Contracts for repair, maintenance, overhaul, or modification are exempt from the justification requirements.
- Restrictions on Installation
- Government property should not be installed on contractor-owned property in a nonseverable way unless specifically authorized.
Responsibilities
- Contracting Officers: Must ensure Government property is only provided when fully justified and authorized, and must document determinations as required.
- Contractors: Must plan to provide their own property and cannot rely on the Government to supply resources unless justified and approved.
- Agencies: Heads of contracting activities must approve nonseverable installations on contractor property when necessary and in the Government’s interest.
Practical Implications
- This policy ensures efficient use of Government resources and limits unnecessary risk and administrative burden.
- Contractors should not assume Government property will be provided and must budget accordingly.
- Contracting officers must carefully document decisions to provide Government property and avoid exceptions unless clearly justified.