Government Supply Sources
When authorized to use government supply sources, contractors must treat all acquired property as government property and comply with FAR 52.245-1 requirements.
Overview
FAR 52.251-1, Government Supply Sources, allows the Contracting Officer to authorize contractors to use government supply sources when performing a contract. When such authorization is granted, any property the contractor acquires through these sources becomes government property unless the contract states otherwise. The clause also makes clear that the requirements of FAR 52.245-1, which governs the management, use, and reporting of government property, apply to all property obtained under this authorization.
Key Rules
- Authorization to Use Government Supply Sources
- Contractors may be authorized by the Contracting Officer to access government supply sources for contract performance.
- Title to Property
- All property acquired through government supply sources under this clause automatically becomes government property unless the contract specifies otherwise.
- Applicability of FAR 52.245-1
- All property acquired under this authorization is subject to the requirements of FAR 52.245-1, Government Property.
Responsibilities
- Contracting Officers: Must provide written authorization for contractors to use government supply sources and ensure contract terms specify property title if different from default.
- Contractors: Must use government supply sources only when authorized, ensure all acquired property is managed as government property, and comply with FAR 52.245-1 requirements.
- Agencies: Must oversee contractor compliance with property management and reporting obligations.
Practical Implications
- This clause exists to facilitate contractor access to government supply sources, which can improve efficiency and cost-effectiveness.
- Contractors must be diligent in tracking and managing property acquired through these sources, as it is subject to strict government property regulations.
- Common pitfalls include failing to properly account for or report government property, or misunderstanding the title transfer provisions.