52.245-2
Government Property Installation Operation Services
Contractors must accept Government-furnished property "as-is," are responsible for replacing lost or unusable items at their own expense, and must dispose of scrap property unless otherwise directed.
Overview
FAR 52.245-2 outlines the requirements and responsibilities for contractors receiving Government-furnished property (GFP) for installation operation services. The clause specifies that such property is provided "as-is, where is," with no Government warranty on its condition or suitability. Contractors are responsible for inspecting the property, replacing any lost or unusable items at their own expense, and disposing of unserviceable or scrap property unless otherwise directed by the Contracting Officer. The clause also clarifies that, except as stated, the general Government Property clause applies to all furnished property under the contract.
Key Rules
- As-Is, Where-Is Provision
- Government property is provided without warranty, and contractors must inspect it before use.
- Contractor Responsibility for Loss or Replacement
- Contractors must replace lost or unusable property at their own expense and retain title to replacements.
- Disposal of Scrap or Unserviceable Property
- Contractors must remove and dispose of scrap or unserviceable property at their own expense, unless otherwise directed.
- Applicability of General Government Property Clause
- All other aspects of Government property management are governed by the standard Government Property clause.
Responsibilities
- Contracting Officers: Ensure the clause is included in applicable contracts and clarify property lists and disposal instructions.
- Contractors: Inspect property, replace lost/unusable items, dispose of scrap, and comply with all property management requirements.
- Agencies: Oversee contractor compliance and provide property lists.
Practical Implications
- This clause protects the Government from liability for the condition of furnished property and shifts replacement and disposal responsibilities to the contractor. Contractors must budget for potential replacement and disposal costs and maintain clear records of property status. Failure to comply can result in performance issues or contract disputes.