45.106
Transferring accountability
Government property can only be transferred between contracts when there is a firm requirement, and all transfers must be formally documented through contract modifications.
Overview
FAR 45.106 outlines the procedures and requirements for transferring accountability of government property from one contract to another. The section ensures that such transfers only occur when there is a firm requirement under the gaining contract, and mandates that all transfers be properly documented through contract modifications. Once property is transferred, it is treated as Government-furnished property (GFP) under the gaining contract. Importantly, warranties regarding suitability and timely delivery do not apply to contractor-acquired property that is transferred between contracts with the same contractor.
Key Rules
- Firm Requirement for Transfer
- Property can only be transferred if the gaining contract has a documented, firm requirement for it.
- Documentation of Transfer
- Transfers must be recorded by modifying both the gaining and losing contracts.
- Status of Transferred Property
- Once transferred, the property is considered GFP for the gaining contract.
- Warranties Not Applicable
- No warranties of suitability or timely delivery apply to contractor-acquired property transferred between contracts with the same contractor.
Responsibilities
- Contracting Officers: Ensure transfers are justified, properly documented, and contract modifications are executed.
- Contractors: Comply with transfer procedures, support documentation, and recognize the change in property status.
- Agencies: Oversee compliance and maintain accurate property records.
Practical Implications
- This section prevents improper or undocumented transfers of government property, ensuring accountability and proper use. Contractors must be diligent in documenting transfers and understanding the implications for property management and liability. Common pitfalls include failing to document transfers or misunderstanding the change in property status and warranty coverage.