52.245-2 Government Property Installation Operation Services
Source: FAR 52.245-2 on acquisition.gov
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.
As prescribed in 45.107(b), insert the following clause:
Government Property Installation Operation Services (Apr 2012)
(a) This Government Property listed in paragraph (e) of this clause is furnished to the Contractor in an "as-is, where is" condition. The Government makes no warranty regarding the suitability for use of the Government property specified in this contract. The Contractor shall be afforded the opportunity to inspect the Government property as specified in the solicitation.
(b) The Government bears no responsibility for repair or replacement of any lost Government property. If any or all of the Government property is lost or becomes no longer usable, the Contractor shall be responsible for replacement of the property at Contractor expense. The Contractor shall have title to all replacement property and shall continue to be responsible for contract performance.
(c) Unless the Contracting Officer determines otherwise, the Government abandons all rights and title to unserviceable and scrap property resulting from contract performance. Upon notification to the Contracting Officer, the Contractor shall remove such property from the Government premises and dispose of it at Contractor expense.
(d) Except as provided in this clause, Government property furnished under this contract shall be governed by the Government Property clause of this contract.
(e) Government property provided under this clause:
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(End of clause)