Difference between revisions of "FAR 52.245-1 - Government Property"
(11 intermediate revisions by one user not shown) | |||
Line 3: | Line 3: | ||
|ClauseorProvision=Clause | |ClauseorProvision=Clause | ||
|Prescribedin=45.107(a) | |Prescribedin=45.107(a) | ||
− | |TypePurposeContract=Time and Materials/Labor Hour -A; | + | |TypePurposeContract=Time and Materials/Labor Hour -A |
− | |PrescriptionOverview= | + | |TypeofContractApplicable=Facilities; Architect-Engineering; Dismantling, Demolition or Removal of Improvements; Fixed Price, Supply; Cost Reimbursement, Supply; Communication Services; Leasing of Motor Vehicles; Time & Material/Labor Hour; Cost Reimbursement, Construction; Fixed Price, Construction; Cost Reimbursement, Service; Fixed Price, Service; Cost Reimbursement, R&D; Fixed Price, R&D; Indefinite Delivery; Transportation; Simplified Acquisition Procedures (Excludes Micro-Purchase); Utility Services |
+ | |PrescriptionOverview===Prescription== | ||
− | ( | + | '''(a)''' |
+ | (1) Except as provided in paragraph (d) of this section, the contracting officer shall '''insert the clause at 52.245-1, Government Property, in'''— | ||
− | |||
+ | *(i) '''All cost-reimbursement and time-and-material type solicitations and contracts, and labor-hour solicitations when property is expected to be furnished for the labor-hour contracts.''' | ||
− | |||
+ | *(ii) '''Fixed-price solicitations and contracts when the Government will provide Government property.''' | ||
− | *(iii) Contracts or modifications awarded under FAR Part 12 procedures where Government property that exceeds the simplified acquisition threshold, as defined in FAR 2.101, is furnished or where the contractor is directed to acquire property for use under the contract that is titled in the Government. | + | |
+ | *(iii) '''Contracts or modifications awarded under FAR Part 12 procedures where Government property that exceeds the simplified acquisition threshold, as defined in FAR 2.101, is furnished or where the contractor is directed to acquire property for use under the contract that is titled in the Government.''' | ||
Line 24: | Line 27: | ||
(3) The contracting officer shall use the clause with its Alternate II when a contract for the conduct of basic or applied research at nonprofit institutions of higher education or at nonprofit organizations whose primary purpose is the conduct of scientific research (see 35.014) is contemplated. | (3) The contracting officer shall use the clause with its Alternate II when a contract for the conduct of basic or applied research at nonprofit institutions of higher education or at nonprofit organizations whose primary purpose is the conduct of scientific research (see 35.014) is contemplated. | ||
− | |FARClauseOverview===(a) Definitions== | + | |FARClauseOverview===Clause== |
+ | ===(a) Definitions=== | ||
As used in this clause— | As used in this clause— | ||
Line 81: | Line 85: | ||
*(2) For contractor-acquired property, the cost derived from the Contractor’s records that reflect consistently applied generally accepted accounting principles. | *(2) For contractor-acquired property, the cost derived from the Contractor’s records that reflect consistently applied generally accepted accounting principles. | ||
− | ==(b) Property Management== | + | ===(b) Property Management=== |
− | *'''(1)''' The Contractor shall have a system of internal controls to manage (control, use, preserve, protect, repair, and maintain) Government property in its possession. The system shall be adequate to satisfy the requirements of this clause. In doing so, the Contractor shall initiate and maintain the processes, systems, procedures, records, and methodologies necessary for effective and efficient control of Government property. The Contractor shall disclose any significant changes to its property management system to the Property Administrator prior to implementation of the changes. The Contractor may employ customary commercial practices, voluntary consensus standards, or industry-leading practices and standards that provide effective and efficient Government property management that are necessary and appropriate for the performance of this contract (except where inconsistent with law or regulation). | + | |
+ | *'''(1)''' '''The Contractor shall have a system of internal controls to manage (control, use, preserve, protect, repair, and maintain) Government property in its possession.''' '''The system shall be adequate to satisfy the requirements of this clause.''' In doing so, the Contractor shall initiate and maintain the processes, systems, procedures, records, and methodologies necessary for effective and efficient control of Government property. The Contractor shall disclose any significant changes to its property management system to the Property Administrator prior to implementation of the changes. The Contractor may employ customary commercial practices, voluntary consensus standards, or industry-leading practices and standards that provide effective and efficient Government property management that are necessary and appropriate for the performance of this contract (except where inconsistent with law or regulation). | ||
+ | |||
+ | |||
*'''(2)''' The Contractor’s responsibility extends from the initial acquisition and receipt of property, through stewardship, custody, and use until formally relieved of responsibility by authorized means, including delivery, consumption, expending, sale (as surplus property), or other disposition, or via a completed investigation, evaluation, and final determination for lost property. This requirement applies to all Government property under the Contractor’s accountability, stewardship, possession or control, including its vendors or subcontractors (see paragraph (f)(1)(v) of this clause). | *'''(2)''' The Contractor’s responsibility extends from the initial acquisition and receipt of property, through stewardship, custody, and use until formally relieved of responsibility by authorized means, including delivery, consumption, expending, sale (as surplus property), or other disposition, or via a completed investigation, evaluation, and final determination for lost property. This requirement applies to all Government property under the Contractor’s accountability, stewardship, possession or control, including its vendors or subcontractors (see paragraph (f)(1)(v) of this clause). | ||
+ | |||
+ | |||
*'''(3)''' The Contractor shall include the requirements of this clause in all subcontracts under which Government property is acquired or furnished for subcontract performance. | *'''(3)''' The Contractor shall include the requirements of this clause in all subcontracts under which Government property is acquired or furnished for subcontract performance. | ||
− | |||
− | ==(c) Use of Government Property== | + | |
+ | *'''(4)''' '''The Contractor shall establish and maintain procedures necessary to assess its property management system effectiveness and shall perform periodic internal reviews, surveillances, self assessments, or audits. Significant findings or results of such reviews and audits pertaining to Government property shall be made available to the Property Administrator.''' | ||
+ | |||
+ | ===(c) Use of Government Property=== | ||
*'''(1)''' The Contractor shall use Government property, either furnished or acquired under this contract, only for performing this contract, unless otherwise provided for in this contract or approved by the Contracting Officer. | *'''(1)''' The Contractor shall use Government property, either furnished or acquired under this contract, only for performing this contract, unless otherwise provided for in this contract or approved by the Contracting Officer. | ||
*'''(2)''' Modifications or alterations of Government property are prohibited, unless they are— | *'''(2)''' Modifications or alterations of Government property are prohibited, unless they are— | ||
Line 95: | Line 106: | ||
*'''(3)''' The Contractor shall not cannibalize Government property unless otherwise provided for in this contract or approved by the Contracting Officer. | *'''(3)''' The Contractor shall not cannibalize Government property unless otherwise provided for in this contract or approved by the Contracting Officer. | ||
− | ==(d) Government-furnished Property== | + | ===(d) Government-furnished Property=== |
*'''(1)''' The Government shall deliver to the Contractor the Government-furnished property described in this contract. The Government shall furnish related data and information needed for the intended use of the property. The warranties of suitability of use and timely delivery of Government-furnished property do not apply to property acquired or fabricated by the Contractor as contractor-acquired property and subsequently transferred to another contract with this Contractor. | *'''(1)''' The Government shall deliver to the Contractor the Government-furnished property described in this contract. The Government shall furnish related data and information needed for the intended use of the property. The warranties of suitability of use and timely delivery of Government-furnished property do not apply to property acquired or fabricated by the Contractor as contractor-acquired property and subsequently transferred to another contract with this Contractor. | ||
*'''(2)''' The delivery and/or performance dates specified in this contract are based upon the expectation that the Government-furnished property will be suitable for contract performance and will be delivered to the Contractor by the dates stated in the contract. | *'''(2)''' The delivery and/or performance dates specified in this contract are based upon the expectation that the Government-furnished property will be suitable for contract performance and will be delivered to the Contractor by the dates stated in the contract. | ||
Line 108: | Line 119: | ||
**(ii) Upon completion of any action(s) under paragraph (d)(3)(i) of this clause, and the Contractor’s timely written request, the Contracting Officer shall consider an equitable adjustment to the contract. | **(ii) Upon completion of any action(s) under paragraph (d)(3)(i) of this clause, and the Contractor’s timely written request, the Contracting Officer shall consider an equitable adjustment to the contract. | ||
− | ==(e) Title to Government Property== | + | ===(e) Title to Government Property=== |
*(1) All Government-furnished property and all property acquired by the Contractor, title to which vests in the Government under this paragraph (collectively referred to as “Government property”), is subject to the provisions of this clause. The Government shall retain title to all Government-furnished property. Title to Government property shall not be affected by its incorporation into or attachment to any property not owned by the Government, nor shall Government property become a fixture or lose its identity as personal property by being attached to any real property. | *(1) All Government-furnished property and all property acquired by the Contractor, title to which vests in the Government under this paragraph (collectively referred to as “Government property”), is subject to the provisions of this clause. The Government shall retain title to all Government-furnished property. Title to Government property shall not be affected by its incorporation into or attachment to any property not owned by the Government, nor shall Government property become a fixture or lose its identity as personal property by being attached to any real property. | ||
*(2) Title vests in the Government for all property acquired or fabricated by the Contractor in accordance with the financing provisions or other specific requirements for passage of title in the contract. Under fixed price type contracts, in the absence of financing provisions or other specific requirements for passage of title in the contract, the Contractor retains title to all property acquired by the Contractor for use on the contract, except for property identified as a deliverable end item. If a deliverable item is to be retained by the Contractor for use after inspection and acceptance by the Government, it shall be made accountable to the contract through a contract modification listing the item as Government-furnished property. | *(2) Title vests in the Government for all property acquired or fabricated by the Contractor in accordance with the financing provisions or other specific requirements for passage of title in the contract. Under fixed price type contracts, in the absence of financing provisions or other specific requirements for passage of title in the contract, the Contractor retains title to all property acquired by the Contractor for use on the contract, except for property identified as a deliverable end item. If a deliverable item is to be retained by the Contractor for use after inspection and acceptance by the Government, it shall be made accountable to the contract through a contract modification listing the item as Government-furnished property. | ||
Line 118: | Line 129: | ||
***(C) Reimbursement of the cost of the property by the Government, whichever occurs first. | ***(C) Reimbursement of the cost of the property by the Government, whichever occurs first. | ||
− | ==(f) Contractor Plans and Systems== | + | ===(f) Contractor Plans and Systems=== |
− | + | (1) Contractors shall establish and implement property management plans, systems, and procedures at the contract, program, site or entity level to enable the following outcomes: | |
− | + | ===(i) Acquisition of Property=== | |
− | + | The Contractor shall document that all property was acquired consistent with its engineering, production planning, and property control operations. | |
+ | |||
+ | ====(ii)Receipt of Government Property==== | ||
+ | The Contractor shall receive Government property and document the receipt, record the information necessary to meet the record requirements of paragraph (f)(1)(iii)(A)(1) through (5) of this clause, identify as Government owned in a manner appropriate to the type of property (e.g., stamp, tag, mark, or other identification), and manage any discrepancies incident to shipment. | ||
***(A) Government-furnished property. The Contractor shall furnish a written statement to the Property Administrator containing all relevant facts, such as cause or condition and a recommended course(s) of action, if overages, shortages, or damages and/or other discrepancies are discovered upon receipt of Government-furnished property. | ***(A) Government-furnished property. The Contractor shall furnish a written statement to the Property Administrator containing all relevant facts, such as cause or condition and a recommended course(s) of action, if overages, shortages, or damages and/or other discrepancies are discovered upon receipt of Government-furnished property. | ||
***(B) Contractor-acquired property. The Contractor shall take all actions necessary to adjust for overages, shortages, damage and/or other discrepancies discovered upon receipt, in shipment of Contractor-acquired property from a vendor or supplier, so as to ensure the proper allocability and allowability of associated costs. | ***(B) Contractor-acquired property. The Contractor shall take all actions necessary to adjust for overages, shortages, damage and/or other discrepancies discovered upon receipt, in shipment of Contractor-acquired property from a vendor or supplier, so as to ensure the proper allocability and allowability of associated costs. | ||
− | + | ||
+ | ====(iii) Records of Government Property==== | ||
+ | The Contractor shall create and maintain records of all Government property accountable to the contract, including Government-furnished and Contractor-acquired property. | ||
***(A) Property records shall enable a complete, current, auditable record of all transactions and shall, unless otherwise approved by the Property Administrator, contain the following: | ***(A) Property records shall enable a complete, current, auditable record of all transactions and shall, unless otherwise approved by the Property Administrator, contain the following: | ||
− | *(1) The name, part number and description, National Stock Number (if needed for additional item identification tracking and/or disposition), and other data elements as necessary and required in accordance with the terms and conditions of the contract. | + | ****(1) The name, part number and description, National Stock Number (if needed for additional item identification tracking and/or disposition), and other data elements as necessary and required in accordance with the terms and conditions of the contract. |
− | *(2) Quantity received (or fabricated), issued, and balance-on-hand. | + | ****(2) Quantity received (or fabricated), issued, and balance-on-hand. |
− | *(3) Unit acquisition cost. | + | ****(3) Unit acquisition cost. |
− | *(4) Unique-item identifier or equivalent (if available and necessary for individual item tracking). | + | ****(4) Unique-item identifier or equivalent (if available and necessary for individual item tracking). |
− | *(5) Unit of measure. | + | ****(5) Unit of measure. |
− | *(6) Accountable contract number or equivalent code designation. | + | ****(6) Accountable contract number or equivalent code designation. |
− | *(7) Location. | + | ****(7) Location. |
− | *(8) Disposition. | + | ****(8) Disposition. |
− | *(9) Posting reference and date of transaction. | + | ****(9) Posting reference and date of transaction. |
− | *(10) Date placed in service (if required in accordance with the terms and conditions of the contract). | + | ****(10) Date placed in service (if required in accordance with the terms and conditions of the contract). |
***(B) Use of a Receipt and Issue System for Government Material. When approved by the Property Administrator, the Contractor may maintain, in lieu of formal property records, a file of appropriately cross-referenced documents evidencing receipt, issue, and use of material that is issued for immediate consumption. | ***(B) Use of a Receipt and Issue System for Government Material. When approved by the Property Administrator, the Contractor may maintain, in lieu of formal property records, a file of appropriately cross-referenced documents evidencing receipt, issue, and use of material that is issued for immediate consumption. | ||
− | + | ||
− | + | ====(iv) Physical Inventory==== | |
+ | The Contractor shall perform, record, and disclose physical inventory results. A final physical inventory shall be performed upon contract completion or termination. The Property Administrator may waive this final inventory requirement, depending on the circumstances (e.g., overall reliability of the Contractor’s system or the property is to be transferred to a follow-on contract). | ||
+ | |||
+ | ====(v) Subcontractor Control==== | ||
***(A) The Contractor shall award subcontracts that clearly identify items to be provided and the extent of any restrictions or limitations on their use. The Contractor shall ensure appropriate flow down of contract terms and conditions (e.g., extent of liability for loss of Government property. | ***(A) The Contractor shall award subcontracts that clearly identify items to be provided and the extent of any restrictions or limitations on their use. The Contractor shall ensure appropriate flow down of contract terms and conditions (e.g., extent of liability for loss of Government property. | ||
***(B) The Contractor shall assure its subcontracts are properly administered and reviews are periodically performed to determine the adequacy of the subcontractor’s property management system. | ***(B) The Contractor shall assure its subcontracts are properly administered and reviews are periodically performed to determine the adequacy of the subcontractor’s property management system. | ||
− | |||
− | |||
− | |||
− | |||
− | |||
− | |||
− | |||
− | |||
− | |||
− | |||
− | |||
− | |||
− | |||
− | |||
− | |||
− | |||
− | ( | + | ====(vi) Reports==== |
+ | The Contractor shall have a process to create and provide reports of discrepancies, loss of Government property, physical inventory results, audits and self-assessments, corrective actions, and other property-related reports as directed by the Contracting Officer. | ||
− | ( | + | ====(vii)''' Relief of Stewardship Responsibility and Liability==== |
− | + | The Contractor shall have a process to enable the prompt recognition, investigation, disclosure and reporting of loss of Government property, including losses that occur at subcontractor or alternate site locations. | |
− | ( | + | ***(A) This process shall include the corrective actions necessary to prevent recurrence. |
− | + | ***(B) Unless otherwise directed by the Property Administrator, the Contractor shall investigate and report to the Government all incidents of property loss as soon as the facts become known. Such reports shall, at a minimum, contain the following information: | |
− | (3) | + | ****(1) Date of incident (if known). |
− | + | ****(2) The data elements required under (f)(1)(iii)(A). | |
− | ( | + | ****(3) Quantity. |
+ | ****(4) Accountable contract number. | ||
+ | ****(5) A statement indicating current or future need. | ||
+ | ****(6) Unit acquisition cost, or if applicable, estimated sales proceeds, estimated repair or replacement costs. | ||
+ | ****(7) All known interests in commingled material of which includes Government material. | ||
+ | ****(8) Cause and corrective action taken or to be taken to prevent recurrence. | ||
+ | ****(9) A statement that the Government will receive compensation covering the loss of Government property, in the event the Contractor was or will be reimbursed or compensated. | ||
+ | ****(10) Copies of all supporting documentation. | ||
+ | ****(11) Last known location. | ||
+ | ****(12) A statement that the property did or did not contain sensitive, export controlled, hazardous, or toxic material, and that the appropriate agencies and authorities were notified. | ||
− | ( | + | ***(C) Unless the contract provides otherwise, the Contractor shall be relieved of stewardship responsibility and liability for property when— |
+ | ****(1) Such property is consumed or expended, reasonably and properly, or otherwise accounted for, in the performance of the contract, including reasonable inventory adjustments of material as determined by the Property Administrator; | ||
+ | ****(2) Property Administrator grants relief of responsibility and liability for loss of Government property; | ||
+ | ****(3) Property is delivered or shipped from the Contractor's plant, under Government instructions, except when shipment is to a subcontractor or other location of the Contractor; or | ||
+ | ****(4) Property is disposed of in accordance with paragraphs (j) and (k) of this clause. | ||
+ | ===(viii) Utilizing Government Property=== | ||
(A) The Contractor shall utilize, consume, move, and store Government Property only as authorized under this contract. The Contractor shall promptly disclose and report Government property in its possession that is excess to contract performance. | (A) The Contractor shall utilize, consume, move, and store Government Property only as authorized under this contract. The Contractor shall promptly disclose and report Government property in its possession that is excess to contract performance. | ||
(B) Unless otherwise authorized in this contract or by the Property Administrator the Contractor shall not commingle Government material with material not owned by the Government. | (B) Unless otherwise authorized in this contract or by the Property Administrator the Contractor shall not commingle Government material with material not owned by the Government. | ||
− | (ix) Maintenance | + | ===(ix) Maintenance=== |
+ | The Contractor shall properly maintain Government property. The Contractor’s maintenance program shall enable the identification, disclosure, and performance of normal and routine preventative maintenance and repair. The Contractor shall disclose and report to the Property Administrator the need for replacement and/or capital rehabilitation. | ||
− | (x) Property | + | ===(x) Property Closeout=== |
+ | The Contractor shall promptly perform and report to the Property Administrator contract property closeout, to include reporting, investigating and securing closure of all loss of Government property cases; physically inventorying all property upon termination or completion of this contract; and disposing of items at the time they are determined to be excess to contractual needs. | ||
(2) The Contractor shall establish and maintain Government accounting source data, as may be required by this contract, particularly in the areas of recognition of acquisitions, loss of Government property, and disposition of material and equipment. | (2) The Contractor shall establish and maintain Government accounting source data, as may be required by this contract, particularly in the areas of recognition of acquisitions, loss of Government property, and disposition of material and equipment. | ||
Line 266: | Line 286: | ||
“No person in the United States or its outlying areas shall, on the ground of race, color, or national origin, be excluded from participation in, be denied the benefits of, or be otherwise subjected to discrimination under this contemplated financial assistance (title to property).” | “No person in the United States or its outlying areas shall, on the ground of race, color, or national origin, be excluded from participation in, be denied the benefits of, or be otherwise subjected to discrimination under this contemplated financial assistance (title to property).” | ||
|ImportantNotesRequirements===Related Page== | |ImportantNotesRequirements===Related Page== | ||
− | [[ | + | [[DFARS 252.245-7003 Contractor Property Management System Administration]] |
[[Category:FAR 52 - Solicitation Provisions and Contract Clauses]] | [[Category:FAR 52 - Solicitation Provisions and Contract Clauses]] |
Latest revision as of 15:35, 11 December 2017
Prescribed in 45.107(a) | |
Effective Date: | 1 April 2012 |
Clause or Provision: | Clause |
Provision or Clause Number: | 52.245-1 - Government Property |
Principle Type And/Or Purpose of Contract: | |
Required: | |
Applicable: | Time and Materials/Labor Hour; Facilities; Architect-Engineering; Dismantling, Demolition or Removal of Improvements; Fixed Price, Supply; Cost Reimbursement, Supply; Communication Services; Leasing of Motor Vehicles; Time & Material/Labor Hour; Cost Reimbursement, Construction; Fixed Price, Construction; Cost Reimbursement, Service; Fixed Price, Service; Cost Reimbursement, R&D; Fixed Price, R&D; Indefinite Delivery; Transportation; Simplified Acquisition Procedures (Excludes Micro-Purchase); Utility Services |
Optional: | |
Subject: | |
ProcurementType: | |
Contract Threshold: | |
Prescription Overview: |
Prescription(a) (1) Except as provided in paragraph (d) of this section, the contracting officer shall insert the clause at 52.245-1, Government Property, in—
(2) The contracting officer shall use the clause with its Alternate I in contracts other than those identified in FAR 45.104(a), Responsibility and Liability for Government Property.
(3) The contracting officer shall use the clause with its Alternate II when a contract for the conduct of basic or applied research at nonprofit institutions of higher education or at nonprofit organizations whose primary purpose is the conduct of scientific research (see 35.014) is contemplated. |
Clause Overview: |
Clause(a) DefinitionsAs used in this clause— “Cannibalize” means to remove parts from Government property for use or for installation on other Government property. “Contractor-acquired property” means property acquired, fabricated, or otherwise provided by the Contractor for performing a contract, and to which the Government has title. “Contractor inventory” means—
“Contractor’s managerial personnel” means the Contractor’s directors, officers, managers, superintendents, or equivalent representatives who have supervision or direction of—
“Demilitarization” means rendering a product unusable for, and not restorable to, the purpose for which it was designed or is customarily used. “Discrepancies incident to shipment” means any differences (e.g., count or condition) between the items documented to have been shipped and items actually received. “Equipment” means a tangible item that is functionally complete for its intended purpose, durable, nonexpendable, and needed for the performance of a contract. Equipment is not intended for sale, and does not ordinarily lose its identity or become a component part of another article when put into use. Equipment does not include material, real property, special test equipment or special tooling. “Government-furnished property” means property in the possession of, or directly acquired by, the Government and subsequently furnished to the Contractor for performance of a contract. Government-furnished property includes, but is not limited to, spares and property furnished for repair, maintenance, overhaul, or modification. Government-furnished property also includes contractor-acquired property if the contractor-acquired property is a deliverable under a cost contract when accepted by the Government for continued use under the contract. “Government property” means all property owned or leased by the Government. Government property includes both Government-furnished and Contractor-acquired property. Government property includes material, equipment, special tooling, special test equipment, and real property. Government property does not include intellectual property and software. “Loss of Government property” means unintended, unforeseen or accidental loss, damage or destruction to Government property that reduces the Government’s expected economic benefits of the property. Loss of Government property does not include purposeful destructive testing, obsolescence, normal wear and tear or manufacturing defects. Loss of Government property includes, but is not limited to—
“Material” means property that may be consumed or expended during the performance of a contract, component parts of a higher assembly, or items that lose their individual identity through incorporation into an end item. Material does not include equipment, special tooling, special test equipment or real property. “Nonseverable” means property that cannot be removed after construction or installation without substantial loss of value or damage to the installed property or to the premises where installed. “Precious metals” means silver, gold, platinum, palladium, iridium, osmium, rhodium, and ruthenium. “Production scrap” means unusable material resulting from production, engineering, operations and maintenance, repair, and research and development contract activities. Production scrap may have value when re-melted or reprocessed, e.g., textile and metal clippings, borings, and faulty castings and forgings. “Property” means all tangible property, both real and personal. “Property Administrator” means an authorized representative of the Contracting Officer appointed in accordance with agency procedures, responsible for administering the contract requirements and obligations relating to Government property in the possession of a Contractor. “Property records” means the records created and maintained by the contractor in support of its stewardship responsibilities for the management of Government property. “Provide” means to furnish, as in Government-furnished property, or to acquire, as in contractor-acquired property. “Real property” See Federal Management Regulation 102-71.20 (41 CFR 102-71.20). “Sensitive property” means property potentially dangerous to the public safety or security if stolen, lost, or misplaced, or that shall be subject to exceptional physical security, protection, control, and accountability. Examples include weapons, ammunition, explosives, controlled substances, radioactive materials, hazardous materials or wastes, or precious metals. “Unit acquisition cost” means—
(b) Property Management
(c) Use of Government Property
(d) Government-furnished Property
(e) Title to Government Property
(f) Contractor Plans and Systems(1) Contractors shall establish and implement property management plans, systems, and procedures at the contract, program, site or entity level to enable the following outcomes: (i) Acquisition of PropertyThe Contractor shall document that all property was acquired consistent with its engineering, production planning, and property control operations. (ii)Receipt of Government PropertyThe Contractor shall receive Government property and document the receipt, record the information necessary to meet the record requirements of paragraph (f)(1)(iii)(A)(1) through (5) of this clause, identify as Government owned in a manner appropriate to the type of property (e.g., stamp, tag, mark, or other identification), and manage any discrepancies incident to shipment.
(iii) Records of Government PropertyThe Contractor shall create and maintain records of all Government property accountable to the contract, including Government-furnished and Contractor-acquired property.
(iv) Physical InventoryThe Contractor shall perform, record, and disclose physical inventory results. A final physical inventory shall be performed upon contract completion or termination. The Property Administrator may waive this final inventory requirement, depending on the circumstances (e.g., overall reliability of the Contractor’s system or the property is to be transferred to a follow-on contract). (v) Subcontractor Control
(vi) ReportsThe Contractor shall have a process to create and provide reports of discrepancies, loss of Government property, physical inventory results, audits and self-assessments, corrective actions, and other property-related reports as directed by the Contracting Officer. (vii) Relief of Stewardship Responsibility and LiabilityThe Contractor shall have a process to enable the prompt recognition, investigation, disclosure and reporting of loss of Government property, including losses that occur at subcontractor or alternate site locations.
(viii) Utilizing Government Property(A) The Contractor shall utilize, consume, move, and store Government Property only as authorized under this contract. The Contractor shall promptly disclose and report Government property in its possession that is excess to contract performance. (B) Unless otherwise authorized in this contract or by the Property Administrator the Contractor shall not commingle Government material with material not owned by the Government. (ix) MaintenanceThe Contractor shall properly maintain Government property. The Contractor’s maintenance program shall enable the identification, disclosure, and performance of normal and routine preventative maintenance and repair. The Contractor shall disclose and report to the Property Administrator the need for replacement and/or capital rehabilitation. (x) Property CloseoutThe Contractor shall promptly perform and report to the Property Administrator contract property closeout, to include reporting, investigating and securing closure of all loss of Government property cases; physically inventorying all property upon termination or completion of this contract; and disposing of items at the time they are determined to be excess to contractual needs. (2) The Contractor shall establish and maintain Government accounting source data, as may be required by this contract, particularly in the areas of recognition of acquisitions, loss of Government property, and disposition of material and equipment. (g) Systems Analysis
(h) Contractor Liability for Government Property
(j) Contractor Inventory DisposalExcept as otherwise provided for in this contract, the Contractor shall not dispose of Contractor inventory until authorized to do so by the Plant Clearance Officer or authorizing official.
(k) Abandonment of Government Property
(l) CommunicationAll communications under this clause shall be in writing. (m) Contracts outside the United StatesIf this contract is to be performed outside of the United States and its outlying areas, the words “Government” and “Government-furnished” (wherever they appear in this clause) shall be construed as “United States Government” and “United States Government-furnished,” respectively. AlternatesAlternate I (Apr 2012)As prescribed in 45.107(a)(2), substitute the following for paragraph (h)(1) of the basic clause: (h)(1) The Contractor assumes the risk of, and shall be responsible for, any loss of Government property upon its delivery to the Contractor as Government-furnished property. However, the Contractor is not responsible for reasonable wear and tear to Government property or for Government property properly consumed in performing this contract. Alternate II (Apr 2012)As prescribed in 45.107(a)(3), substitute the following for paragraph (e)(3) of the basic clause: (e)(3) Title to property (and other tangible personal property) purchased with funds available for research and having a unit acquisition cost of less than $5,000 shall vest in the Contractor upon acquisition or as soon thereafter as feasible; provided that the Contractor obtained the Contracting Officer’s approval before each acquisition. Title to property purchased with funds available for research and having a unit acquisition cost of $5,000 or more shall vest as set forth in this contract. If title to property vests in the Contractor under this paragraph, the Contractor agrees that no costs shall be allowed for any depreciation, amortization, or use under any existing or future Government contract or subcontract thereunder. The Contractor shall furnish the Contracting Officer a list of all property to which title is vested in the Contractor under this paragraph within 10 days following the end of the calendar quarter during which it was received. Vesting title under this paragraph is subject to civil rights legislation, 42 U.S.C. 2000d. Before title is vested and by signing this contract, the Contractor accepts and agrees that— “No person in the United States or its outlying areas shall, on the ground of race, color, or national origin, be excluded from participation in, be denied the benefits of, or be otherwise subjected to discrimination under this contemplated financial assistance (title to property).” |
Important Notes/Requirements: |
Related PageDFARS 252.245-7003 Contractor Property Management System Administration |
Subcontract Threshold: | |
Incorporated by Reference: | Yes |
Uniform Contract Format: | I |
Editor: | Marshall |
Personal notes.