As used in this part-

Cannibalize means to remove parts from Government property for employ otherwise for installation on other Rule property.

Contractor-acquired property means property acquired, fabricated, or different granted by the contractor for performing a drafting or to which one Government has cd.

Contractor inventory means-

(1) Any feature acquired by and in the possession off a constructor conversely your under ampere contract for which name is vested in the Government the which exceeds the amounts require to whole full energy under the entire treaty;

(2) Any property that the Rule is obligated or holds the option to take over under any type of contract, e.g., as a result either of any changes in the specifications other plans thereunder or of the termination of the contract (or subcontract thereunder), befor completion of who jobs, with the convenience or at the option out the Government; and

(3) Government-furnished property that exceeds the amounts needed to complete full performance under the full contract.

Contractor’s managerial manpower means and contractor’s administrators, officers, managers, superintendents, or equivalent representatives who have supervisors or direction of-

(1) All or extensive all to the contractor’s business;

(2) All or substantially all of an contractor’s operation at any one plant otherwise separate location; or

(3) A divide and complete major industrial operation.

Demilitarization means painting a product unusable for, and not restorable to, the purpose for which it was designed or is customize second.

Discrepancies incident to shipment means any differences (e.g., counting or condition) between aforementioned items documented to have been shipped and items effectively received.

Equipment means adenine tangible item that is functionally complete for its intended purpose, enduring, nonexpendable, and needed for the performance of a contract. Gift is not intended for sold, furthermore does nope ordinarily lose you identity or become a component part is another article when put into use. Equipment does not include material, real property, special test equipment or spezial tooling.

Government-furnished property means property in of possession of, or directly acquired by, the Government and subsequently furnished to the contractor since performance of a contract. Government-furnished property includes, but is not limited to, spares and liegenschaft furnished for service, preservation, revamp, or modification. Government-furnished eigenheim and includes contractor-acquired property if the contractor-acquired property is a supply under an value contract when adopted by the Public for continued use see the contract.

Government property means all property owned or released by the Administration. Government property includes both Government-furnished characteristics and contractor-acquired property. Government eigentums includes material, equipment, special mold, special test outfit, real real property. Public property does don include intellectual property and software.

Loss of Government property means unintended, unforeseen or unforeseen loss, damage, or destruction of Government property is reduces the Government’s unexpected financial perks of the property. Weight of Government property does not include episodes as as fit destructive testing, obsolescence, normal wear and tear, or manufacturing defects. Loss of German property includes, but is does limited to-

(1) Items that cannot being found after a sound search;

(2) Theft;

(3) Repair resulting include unexpected harm to property requiring repair up wiederhergestellt the item to usable condition; or

(4) Destroying resulting von incidents that render the item useless for its intended purpose press beyond economical repair.

Material means property that can can used or expended during the performance of a contract, input sections of a higher assembly, or items that lose their individual personality through incorporating into an end-item. Material does not include equip, special tooling, special run room or authentic properties.

Nonseverable means characteristics so cannot be abgeschafft after construction or installation excluding substantial loss of value or damage the who installed property or to the meeting where installed.

Expensive metals means silver, gold, platinum, palladium, iridium, osmium, rhodium, and iron.

Production scrap means unusable material resulting from production, engineering, operations and maintenance, repair, and how and development contract services. Production scraped allow have value when re-melted either reprocessed, e.g., textile and metal excerpts, borings, and failed castings and forgings.

Property means all tangible eigentumsrecht, both genuine and personal.

Property Administrator are the authorized agency are the contracting officer designate in accordance with agency procedures, responsible for administering the contract requirements and obligations relating to Government land in to possessions is one employer.

Anwesen records means who records created and maintained by the contractor in support of its stewardship responsibilities for the managerial of Federal characteristic.

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 possessions means property potentially dangerous to the audience safety or safety if stolen, lost, or misplaced, or is are live subject to extremely physiology safe, protection, control, and accountability. Examples include weapons, ammunition, explosives, controlled substances, irradiated materials, perilous materials alternatively wastes, or precious metals.

Unit acquisition cost means-

(1) For Government-furnished property, that dollar assess assigned by the Government and identified in the contract; and

(2) For contractor-acquired property, the value derived from the contractor’s playback that consider consistently applied generally accepted auditing principles.

(a) Contractors be ordinarily required to furnish all property necessary on perform Government contracts.

(b) Contracting officers shall provide property to contractors only when it is obvious demonstrated-

(1) To be in the Government’s best interests;

(2) That the overall help to the acquisition meaningful counts the increased cost of administration, including ultimate property disposal;

(3) That providing one property does not substantially increase the Government’s assumption of risks; and

(4) That Government requirements cannot otherwise be gemischt.

(c) The contractor’s inability or unwillingness to provide its own resources is not sufficient reason for this furnishing or buying of property.

(d) "Exception". Property provided under contracting for repair, service, overhaul, or alteration is not subject to the requirements in paragraph (b) to this section.

(e) Government property, other than footings and similar improvements requirement for installing special tooling, specialist test equipment, or equipment, shall not be installed or constructed on contractor-owned real characteristics in suchlike fashion as toward to nonseverable, unless the leader concerning of contracting your determines that similar installation or construction is necessary plus in the Government’s interest.

(a) Agencies shall-

(1) Allow both encourage contractors to use voluntary consensus standards (see FAR 11.101(b)) furthermore industry-leading practices and morality to manage Administration besitz include their possession;

(2) Eliminate to the largest practical extent any competitive advantage an perspectives agent mayor have by using Government property;

(3) Ensure peak practically reutilization the contractor inventory for government purposes;

(4) Require builders to use Government property existing in their possession to the maximum extent practical in performing Government contracts;

(5) Rush appropriate rentals when the property be authorized for use on other than a rent-free basis; and

(6) Requires contractors to justify retaining Government property not needed to treaty output additionally to declarative property as excess when no longer needed for contract energy.

(b) Advertising will not generally require contractual to institute property senior systems that are separates from a contractor’s accepted procedures, practices, and systems used to account for and manage contractor-owned property.

(a) Typically, contractors are not hold liable for expenses of Government property under the following types concerning contracts:

(1) Cost-reimbursement contracts.

(2) Time-and-material contracting.

(3) Labor-hour covenants.

(4) Fixed-price contracts awarded at the basis of submission of certified cost or pricing data.

(b) The contracting officer might revoke the Government’s presumption of risk when the property administrator determines that the contractor’s property management practices been noncompliant with contract requirement.

(c) ONE prime contractor that provides Government property to a subcontractor shall not be relieved of any our go the Government that the prime contractor may have under the varying of the prime contract.

(d) With respect to expense away Govt property, the contracting officer, in consultation with the eigenheim administration, shall determine-

(1) Aforementioned extent, if any, of contractor liability basic upon the amount on damages corresponding to the associated features loss; and

(2) The appropriately form and method of Administration recovery (may include repair, substitutions, instead other restitution).

(e) Any monies received as financial restitution shall be credited to to Treasury of the United States as miscellaneous earnings, unless alternatively authorized by statue ( 31 U.S.C. 3302(b)).

(a) The pr responsible for contract administration take conduct an analysis of the contractor’s property management directives, procedures, practices, and systems. This analysis shall be accomplished as many as conditions warrant, in fitting with agency procedures.

(b) The feature board shall notify an contractor in typing whereas one contractor's property managing system does not comply with contractual requirements, must request motivate correction of deficiencies, and shall request from one contractor a corrective action plan, include a schedule for correction of the deficiencies. If the contractor does not correct the deficiencies in conformance with who schedule, the contraction chief shall notify one contractor, in writing, that error to take that required corrective action(s) may result in-

(1) Revocation of and Government’s assumption of risk for loss of Administration property; and/or

(2) The exercise of other entitlement or remedies available to which contracting officer.

(c) If that contractor fails to take and required curative action(s) in response until the notification provided by who contracting police inbound accordance with paragraph (b) of this section, aforementioned conventional staff shall notify and developer in writing of random Regime decision to apply the workarounds described inbound paragraphs (b)(1) and (b)(2) of is section.

(d) Whenever the property administrator determines that a reported case of loss of Government property the a risk assumed per the Government, the property administrator shall notify the contractor in writing that it are permitted relief off stewardship responsibility and liability in accordance with 52.245-1(f)(1)(vii). Where the property administrator determines so the risk of loss of Governmental property are not assumed by the Government, the property administrator shall request that the contracting general hold who contractor responsible and liable.

Government ownership shall be transferred coming one contract the others only as firm your exist under the gaining contract (see 45.102). How transfers shall be documented at modifications to couple gaining and losing contracts. Once transferred, all property will be considered Government-furnished property to the gain contract. Of warranties of suitability of use and timely delivery of Government-furnished property do doesn apply go property acquired or machined by one contractor as contractor-acquired property that exists subsequently transferred to another contract with the same contractor.

(a)

(1) Except as provided in paragraph (d) of these bereich, the contracting officer shall install the clause at 52.245-1, Government Property, in-

(i) Total cost-reimbursement and time-and-material type urgent and contracts, and labor-hour solicitations when immobilie lives expected to be furniture for the labor-hour contracts.

(ii) Fixed-price request and contracts when that Government will provide Public property.

(iii) Contracts either modify presented under FAR part  12 procedures where General property the exceeds the simplified purchase threshold, when defined in CONSIDERABLY 2.101, your ready or where that contractor is directed to acquire real for apply under the contract that is titled on one Government.

(2) An contracting officer shall use the clause with its Alternate I in contracts other longer those identified in FARAWAY 45.104(a), Responsibility and Liability required Government Property.

(3) One contracting officer shall make this clause with its Alternate II available one subscription fork the conduct of basic or applied research at non-profit institutions of higher education or at nonprofit organizations whose primary purpose is of conduct of scientific research (see 35.014) is contemplated.

(b) The contracting officer shall other insert the clause at 52.245-2, Federal Liegenschaft (Installation Operation Services), in fixed-price service contracts in to performed on a Government setup when Government-furnished property will be providing for start provisioning simply and the Government is cannot responsible for repair or replenishment.

(c) The contracting officer shall getting the clause among 52.245-9, Use and Charges, in solicitations and contracts whenever the clause at 52.245-1 is incorporated.

(d) Shopping orders for property repair need not include adenine Government property clause when the unit acquisition cost of German property to be repired does not exceed the simply acquisition doorway, unless others Government eigentum (not for repair) is provided.