45.401 Title to Government-furnished property
Source: FAR 45.401 on acquisition.gov
The Government always retains title to Government-furnished property, including leased property, until it is properly disposed of according to law or regulation.
Overview
FAR 45.401 establishes that the Government retains ownership (title) of all Government-furnished property (GFP) provided to contractors, including property leased by the Government and then furnished to the contractor. This title remains with the Government until the property is properly disposed of in accordance with applicable laws or regulations. The section also clarifies that leased property furnished to contractors is treated as GFP under the requirements of FAR clause 52.245-1, which governs the management, use, and disposition of Government property in the possession of contractors.
Key Rules
- Government Retains Title
- The Government always holds title to GFP until it is disposed of according to law or regulation.
- Leased Property as GFP
- Property leased by the Government and provided to contractors is considered GFP and subject to the same rules and clauses, specifically FAR 52.245-1.
Responsibilities
- Contracting Officers: Must ensure contractors understand that title to GFP remains with the Government and that proper procedures for disposition are followed.
- Contractors: Must treat all GFP, including leased property, as Government-owned and comply with FAR 52.245-1 requirements for use, care, and disposition.
- Agencies: Oversee compliance with property management and disposition regulations.
Practical Implications
- This section exists to clarify ownership and accountability for GFP, reducing confusion and potential disputes.
- Contractors must not treat GFP as their own property and must follow all rules for its use and return.
- Common pitfalls include improper use, unauthorized disposal, or misunderstanding the status of leased property as GFP.
The Government retains title to all Government-furnished property until properly disposed of, as authorized by law or regulation. Property that is leased by the Government and subsequently furnished to the contractor for use shall be considered Government-furnished property under the clause 52.245-1, Government Property.