45.107
Contract clauses
FAR 45.107 mandates the inclusion of specific Government property clauses in contracts based on contract type and property involvement, ensuring proper management and accountability.
Overview
FAR 45.107 prescribes the mandatory contract clauses related to Government property that contracting officers must include in solicitations and contracts. It specifies when to use the standard Government Property clause (52.245-1), its alternates, and other related clauses depending on contract type, property involvement, and the nature of the work. The section also provides exceptions for certain purchase orders and outlines requirements for installation operation services and use/charges of Government property.
Key Rules
- Clause 52.245-1, Government Property
- Must be included in all cost-reimbursement, time-and-material, and certain fixed-price contracts where Government property is provided or acquired.
- Alternate I and II of 52.245-1
- Alternate I is used for contracts not covered by FAR 45.104(a); Alternate II is for research contracts with nonprofit educational or scientific institutions.
- Clause 52.245-2, Government Property (Installation Operation Services)
- Required in fixed-price service contracts on Government installations when property is provided for initial provisioning only.
- Clause 52.245-9, Use and Charges
- Must be included whenever 52.245-1 is used.
- Exceptions for Purchase Orders
- Government property clauses are not required for property repair purchase orders below the simplified acquisition threshold unless other property is provided.
Responsibilities
- Contracting Officers: Ensure correct clauses and alternates are included based on contract type and property involvement.
- Contractors: Comply with the requirements and obligations set forth in the included clauses.
- Agencies: Oversee proper clause inclusion and property management compliance.
Practical Implications
- Ensures consistent management and accountability for Government property in contracts.
- Failure to include the correct clauses can result in compliance issues and property mismanagement.
- Contractors must be aware of their obligations under these clauses to avoid liability and ensure proper property handling.