Subpart 45.3
Authorizing the Use and Rental of Government Property
FAR Subpart 45.3 requires contractors to obtain proper authorization and, when applicable, pay rent for the use of Government property outside contract performance, ensuring accountability and compliance.
Overview
FAR Subpart 45.3 outlines the policies and procedures for authorizing the use and rental of Government property by contractors. It addresses when and how contractors may use Government property for contract performance, the terms under which property may be rented, and special considerations for contracts with foreign governments, international organizations, and independent research and development (IR&D) programs. The subpart ensures that Government property is used appropriately, with proper authorization, and that any use outside the scope of the contract is controlled and compensated as required.
Key Rules
- Use and Rental of Government Property
- Contractors must obtain authorization to use Government property and may be required to pay rent for use outside the contract scope.
- Contracts with Foreign Governments or International Organizations
- Special provisions apply when Government property is provided to foreign governments or international organizations, including compliance with international agreements and security requirements.
- Use on IR&D Programs
- Contractors must receive approval to use Government property for independent research and development, and may be subject to rental charges.
Responsibilities
- Contracting Officers: Must ensure proper authorization, document use and rental agreements, and enforce compliance with applicable rules.
- Contractors: Must request and obtain authorization for use, comply with rental terms, and maintain records of property use.
- Agencies: Oversee the use of Government property, ensure compliance, and manage reporting or security requirements for foreign or IR&D use.
Practical Implications
- This subpart exists to protect Government interests and ensure accountability for Government property.
- It impacts daily contracting by requiring formal processes for property use and rental, especially for non-standard uses.
- Common pitfalls include unauthorized use, failure to pay required rent, and inadequate documentation or approvals.