GFP (Government Furnished Property)

What is GFP (Government Furnished Property)?

Government Furnished Property (GFP) is tangible property owned by the U.S. Government that is provided to a contractor for use in performing a government contract. It can include equipment, materials, special tooling, and other items necessary for the contractor to fulfill its contractual obligations. Proper management of GFP is crucial for both the government and the contractor to ensure efficient contract execution and accountability.

Definition

GFP is defined and governed by Federal Acquisition Regulation (FAR) Part 45, which outlines the policies and procedures for managing government property in the possession of contractors. The government retains title to GFP, and the contractor is responsible for its proper care, maintenance, and use in accordance with the contract terms. This includes establishing and maintaining a property management system that meets the requirements of FAR 52.245-1, Government Property. Accurate accounting, record-keeping, and reporting of GFP are essential to avoid potential penalties and ensure successful contract performance. Effective GFP management is not just a compliance issue, but also a critical aspect of cost control and risk mitigation for government contractors.

Key Points

• Accountability: Contractors must maintain meticulous records of all GFP, including its location, condition, and usage.
• Protection: Contractors are responsible for protecting GFP from loss, damage, theft, or destruction. This often involves implementing security measures and appropriate storage procedures.
• Maintenance: Regular maintenance and repair of GFP are essential to ensure its continued usability and prevent costly breakdowns. The contract will specify maintenance responsibilities.
• Contractual Obligations: The specific terms and conditions regarding GFP are outlined in the contract. Contractors must thoroughly review and understand these obligations to ensure compliance.

Practical Examples

1. Manufacturing Contract: A contractor manufacturing military vehicles may be provided with specialized machinery (GFP) by the government to produce the vehicles to specific standards.
2. Research and Development: A research lab conducting government-funded research might receive specialized testing equipment (GFP) to perform experiments and analyze data. The lab must track the usage and calibration of this equipment.
3. IT Services Contract: A contractor providing IT support services to a government agency may be furnished with government-owned laptops and software (GFP) to perform their duties. The contractor must ensure the security and proper use of these assets.