GFM (Government Furnished Material)

What is GFM (Government Furnished Material)?

Government Furnished Material (GFM) refers to tangible property owned by the U.S. Government that is provided to a contractor for use in performing a government contract. It’s a common practice in contracts where the government already possesses specific materials, equipment, or components needed for the contracted work.

Definition

GFM is essentially government-owned "stuff" – materials, parts, components, equipment – that the government makes available to a contractor to use in fulfilling the requirements of a contract. This could range from specialized electronics for a defense system to raw materials for manufacturing. The definition of GFM, its usage, and the responsibilities of both the government and the contractor are typically laid out in the contract's terms and conditions, often referencing FAR Part 45 (Government Property). Proper management of GFM is crucial, as contractors are held accountable for its control, use, maintenance, and disposition per the contract terms and applicable regulations. Failing to do so can lead to negative performance evaluations, financial penalties, or even legal repercussions.

Key Points

• Government Ownership: The government retains ownership of GFM throughout the contract lifecycle.
• Contractual Provision: The contract will clearly specify which materials are being furnished by the government and any conditions attached.
• Contractor Responsibility: Contractors are responsible for safeguarding, maintaining, and properly using GFM according to contract terms and FAR Part 45.
• Accurate Accounting: Maintaining accurate records of GFM receipt, usage, and disposition is essential for compliance and accountability.

Practical Examples

1. Defense Systems Upgrade: A defense contractor is hired to upgrade an existing radar system. The government furnishes the specialized radar components (GFM) to the contractor, who integrates them into the upgraded system.
2. Clothing Manufacturing: A clothing manufacturer contracts with the Department of Defense to produce military uniforms. The government provides the specialized fabric (GFM) needed to meet stringent military specifications.
3. Software Development: A software development company is tasked with creating a custom application for a government agency. The government provides pre-existing software libraries and development tools (GFM) to accelerate the development process.