FAR Part 45

Question 1

Part 45

Answer 1

Government Property

Question 2

Overview of FAR Part 45 - Government Property

• Purpose: Establishes policies and procedures for managing
  government property in the possession of contractors (FAR 45.000).
• Key Sections:

Answer 2

• 45.1 General
• 45.2 Solicitation and Evaluation Procedures
• 45.3 Authorizing the Use and Rental of Government Property
• 45.4 Title to Government Property
• 45.5 Support Government Property Administration
• 45.6 Reporting, Reutilization, and Disposal

Question 3

Part 45 - Government Property

Subpart 45.1 - General

• Purpose: Provides general policies for managing government property
  (FAR 45.101).
• Key Features:

Answer 3

• Defines the scope and applicability of government property management policies (FAR 45.102).
• Emphasizes the responsibilities of contractors and contracting officers in managing government property (FAR 45.103).

Question 4

Part 45 - Government Property

Subpart 45.2 - Solicitation and Evaluation Procedures

• Purpose: Establishes procedures for including government property
  requirements in solicitations and evaluating proposals (FAR 45.201).
• Key Features:

Answer 4

• Guidelines for incorporating government property clauses into solicitations (FAR
  45.202).
• Procedures for evaluating contractor proposals involving government property (FAR 45.203).

Question 5

Part 45 - Government Property

Subpart 45.3 - Authorizing the Use and Rental of Government Property

• Purpose: Provides procedures for authorizing contractors to use and rent government property (FAR 45.301).
• Key Features:

Answer 5

• Criteria for authorizing the use of government property in contracts (FAR 45.302).
• Guidelines for rental rates and agreements for government property (FAR 45.303).

Question 6

Part 45 - Government Property

Subpart 45.4 - Title to Government Property

• Purpose: Establishes policies for determining the title to government
  property (FAR 45.401).
• Key Features:

Answer 6

• Guidelines for determining when the title to property vests with the government (FAR 45.402).
• Procedures for managing property titles and resolving disputes (FAR 45.403).

Question 7

Part 45 - Government Property

Subpart 45.5 - Support Government Property Administration

• Purpose: Provides guidelines for supporting the administration of
  government property (FAR 45.501).
• KeyFeatures:

Answer 7

• Responsibilities of contractors and contracting officers in property
  administration (FAR 45.502).
• Procedures for property recordkeeping and reporting (FAR 45.503).

Question 8

Part 45 - Government Property

Overview of FAR Part 50 - Extraordinary Contractual Actions and The Safety Act

• Purpose: Establishes policies and procedures for extraordinary contractual actions and the Support Anti-terrorism by Fostering Effective Technologies (SAFETY) Act (FAR 50.000).
• Key Sections:

Answer 8

• 50.1 Extraordinary Contractual Actions
• 50.2 Support Anti-terrorism by Fostering Effective Technologies Act of 2002

Question 9

Types of Government Property

Answer 9

Contractor-acquired property
* Property acquired, fabricated, or otherwise provided by the contractor for performing a contract and to which the government has title

Government-furnished property
* Property in the possession of, or directly acquired by, the government and subsequently furnished to the contractor for performance of a contract

Government property
* Property owned by or leased to the government, or acquired by the government under the terms of the contract
* Includes both government-furnished property and contractor-acquired property

Question 10

Contractor-acquired property

Answer 10

• Property acquired, fabricated, or otherwise provided by the contractor for performing a contract and to which the government has title

Question 11

Contracting officers shall provide property to contractors only when it is clearly demonstrated

Answer 11

To be in the government’s best interest

• That the overall benefit to the acquisition significantly outweighs the increased cost of administration
• That providing the property does not substantially increase the government’s assumption of risk
• That government requirements cannot otherwise be met

Question 12

Loss of Government Property

Generally, contractors are not held liable for loss of government property under:

Answer 12

Cost-reimbursement contracts

• Time-and-material contracts
• Labor-hour contracts
• Fixed-price contracts awarded on the basis of submission of certified cost or pricing data

Question 13

Loss of Government Property

With respect to loss of government property, the contracting officer, in consultation with the property
administrator, shall determine:

Answer 13

The extent, fi any, of contractor liability based upon the amount of damages corresponding to the associated property loss; and

The appropriate form and method of government recovery
(may include repair, replacement, or other restitution

Question 14

Authorizing the Use of Government Property

Answer 14

Government property shall normally be provided on a rent-free basis in performance of the contract under which it is accountable i
or otherwise authorized

Requests by,
or for the benefit of, foreign governments or international organizations to use government property shall be processed in accordance with agency procedures.

The government retains title to all government-furnished property until properly disposed of, as authorized by law or regulation.

Question 15

CONTRACTOR-ACQUIRED PROPERTY

Answer 15

is property acquired, fabricated, or otherwise provided by the contractor for performing a contract and to which the government has title.

Question 16

GOVERNMENT-FURNISHED PROPERTY is

Answer 16

property in the possession of, or directly acquired by, the government and subsequently furnished to the contractor for performance of a contract.

Question 17

GOVERNMENT PROPERTY is

Answer 17

all property owned by or leased to the government or acquired by the government under the terms of the contract. It includes both government-furnished property and contractor-acquired property.

Question 18

Agencies will not generally require contractors to establish

Answer 18

property management systems that are separate from a contractor’s established procedures, practices, and systems used to account for and manage contractor-owned property.

Generally, contractors are not held liable for loss of government property under cost-reimbursement, time-and-materials, labor-hour, or fixed-price contracts awarded on the basis of certified cost or pricing data in accordance with FAR 52.245-1, Government Property. Contracts other than those specified should include Alternate I to FAR 52.245-1,

Government Property, which holds the contractor liable for loss of government property, except for reasonable wear and tear in performing the contract.

Question 19

Government property shall

Answer 19

normally be provided on a rent-free basis in performance of the contract under which it is accountable or otherwise authorized.

The contracting officer cognizant of the government property may authorize the rent-free use of property in the possession of nonprofit organizations when used for research, development, or educational work; and if it will not be used for the direct benefit of a profit-making organization and the government receives some benefit or it is in the national interest.

Question 20

Requests by, or for the benefit of, foreign governments or international organizations to use government property shall

Answer 20

be processed in accordance with agency procedures.

Question 21

The government retains title to all government-furnished property until properly

Answer 21

disposed of.

Title vests in the government for all property acquired or fabricated by the contractor in accordance with the contract requirements for passage of title.

Under cost-type and time-and-materials contracts, the government acquires title to all property to which the contractor is entitled to reimbursement.