45.103
General
Agencies must ensure contractors manage Government property efficiently using industry standards, prevent unfair advantages, and avoid unnecessary administrative burdens.
Overview
FAR 45.103 outlines general agency responsibilities and principles for managing Government property in the possession of contractors. It emphasizes the use of voluntary consensus standards and industry best practices, the elimination of unfair competitive advantages, and the efficient reutilization and management of Government property. Agencies are directed to encourage contractors to use property already in their possession, charge appropriate rentals for non-rent-free use, and require justification for retaining unneeded property. Importantly, agencies should not require contractors to establish separate property management systems if their existing systems are adequate for both contractor-owned and Government property.
Key Rules
- Use of Voluntary Standards and Best Practices
- Contractors should be allowed and encouraged to use recognized industry standards and best practices for property management.
- Elimination of Competitive Advantage
- Agencies must minimize any competitive edge a contractor might gain from using Government property.
- Reutilization of Contractor Inventory
- Agencies must ensure that contractor-held inventory is reused for Government purposes whenever possible.
- Use of Existing Government Property
- Contractors should use Government property already in their possession for new contracts to the maximum extent practical.
- Rental Charges
- Appropriate rental fees must be charged when Government property is used on a non-rent-free basis.
- Justification and Declaration of Excess Property
- Contractors must justify retaining Government property not needed for contract performance and declare excess property when no longer required.
- No Separate Property Systems Required
- Contractors are generally not required to create separate property management systems if their existing systems are sufficient.
Responsibilities
- Contracting Officers: Ensure contractors follow property management requirements, charge rentals, and oversee justification for property retention.
- Contractors: Use best practices, justify retention of property, declare excess property, and use existing property efficiently.
- Agencies: Oversee compliance, encourage standard practices, and prevent unfair advantages.
Practical Implications
- This section ensures efficient, fair, and standardized management of Government property by contractors.
- It reduces administrative burden by allowing contractors to use existing property systems.
- Common pitfalls include failing to declare excess property, not charging appropriate rentals, or not using existing property efficiently.