Subpart 45.4
Title to Government Property
FAR Subpart 45.4 establishes when and how title to government-furnished and contractor-acquired property passes to the government, ensuring clear accountability and property management in federal contracts.
Overview
FAR Subpart 45.4 addresses the rules and procedures regarding the ownership (title) of property used in government contracts, specifically focusing on government-furnished property and contractor-acquired property. This subpart clarifies when and how title to property passes to the government, which is critical for managing accountability, risk, and property disposition. It provides the framework for determining whether the government or the contractor holds title to property used or acquired during contract performance, impacting inventory, reporting, and liability responsibilities.
Key Rules
- Title to Government-Furnished Property
- Outlines that the government retains title to property it provides to contractors for use in contract performance.
- Title to Contractor-Acquired Property
- Specifies when title to property acquired by the contractor for contract performance passes to the government, typically upon acquisition or as specified in the contract.
Responsibilities
- Contracting Officers: Must ensure contract clauses clearly define title transfer terms and monitor compliance.
- Contractors: Must properly account for, protect, and report on government property, and understand when title passes to the government.
- Agencies: Oversee property management and ensure contractors adhere to title and accountability requirements.
Practical Implications
- This subpart exists to clarify ownership and accountability for property used in government contracts, reducing disputes and ensuring proper management.
- Impacts daily contracting by dictating how property is tracked, reported, and disposed of.
- Common pitfalls include misunderstanding when title passes, leading to compliance or liability issues.