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    1. How are 252.211-7003 and 252.211-7008 corrolated to Government Furnished Property (GFP). 2. In what instances would we use the commercial clauses in relation to GFP.


    1.  Neither of the two referenced DFARS clauses described below are directly related to the Government Property Management System (PMS) required of a contractor via the Government Property clause, 52.245-1
    ·  252.211-7003 Item Unique Identification and Valuation
    Ø  Clause application prescribed in 211.274-6(a)(1) as follows:
    211.274-6  Contract clauses.
    (a)(1)  Use the clause at 252.211-7003, Item Unique Identification and Valuation, in solicitations and contracts, including solicitations and contracts using FAR part 12 procedures for the acquisition of commercial items, that require item identification or valuation, or both, in accordance with 211.274-2 and 211.274-3.
    ·  252.211-7008 Use of Government-Assigned Serial Numbers
    Ø  Clause application prescribed in 211.274-6(c)
    (c)  Use the clause at 252.211-7008, Use of Government-Assigned Serial Numbers, in solicitations and contracts, including solicitations and contracts using FAR part 12 procedures for the acquisition of commercial items, that—
    (1)  Contain the clause at 252.211-7003, Item Unique Identification and Valuation; and
    (2)  Require the contractor to mark major end items under the terms and conditions of the contract.
    There is rather an indirect connection to Government property.
    First – The application of DFARS 252.211-7003 is directed at the DELIVERABLE END ITEMS in a contract – and deals with the application of the Unique item identifier (UII) and other clausal requirements, MIL-STD-130 and input of data directly into the IUID Registry or through Wide Area Work Flow (252.211-7003(f)).  So, in this situation the Government is concerned with the DELIVERABLE END ITEM.
    Second - the contractor may acquire contractor-acquired property (CAP) (see definition at FAR 45.101) items, “acquired, fabricated, or otherwise provided by the contractor for performing a contract and to which the Government has title.”  If such CAP items are subsequently delivered to the Government under terms of the contract, via a contract line item number (CLIN), then the requirements imposed on the contractor for both DFARS 252.211-7003 and 252.211-7008 apply to such CAP items.  If such items are retained by the contractor for use, such items are now converted to Government-furnished Property (GFP) and listed as such on the contract.  Such items may be tagged (as required by DFARS 252.211.7008) and the contractor’s stewardship records may reflect a unique identifier (as required by DFARS 252.211.7003).
    If these items of property (Deliverable End Items) BECOME GFP accountable under a contract then, these items are subject to management by the Contractor under its Property Management System and are audited by the Government Property Administrator (PA) when conducting a Property Management System Audit (PMSA) as required under the Government Property clause.
    2.  Your second question asked about instances where commercial clauses would be used in relation to GFP.
    Well, the simple answer is that the contracting officer is required to use the clauses PRESCRIBED by the FAR and appropriate supplements.  So, the use of “commercial clauses” should be rare.  But, since you asked about “commercial clauses” we feel obliged to provide some applicable response.  Re-phrasing your question to reflect an actual contracting situation results in the following question:
    “When a commercial contract is written under FAR Part 12, in what situations where GFP is provided or contemplated might the Government Property clause at 52.245-1 be employed?”
    In your background statement you noted two FAR clauses - FAR Part 12 and 8.  These are not contract clauses.  Rather, they are portions of the FAR that generally describe the “how to, when to and why to” rationale for the topic areas.  So, FAR Part 8 and 12 discuss the “how to, when to and why to” as follows:
    ·  Part 8 Required Sources of Supplies and Services
    ·  Part 12 Acquisition of Commercial Items
    With this understanding let’s now consider the revised question above.
    ·  FAR Part 8 may be involved since FAR Subpart 8.1 -- Excess Personal Property is, in effect discussing “excess Government property” and states the following:
    8.102 -- Policy.
    When practicable, agencies must use excess personal property as the first source of supply for agency and cost-reimbursement contractor requirements. Agency personnel must make positive efforts to satisfy agency requirements by obtaining and using excess personal property (including that suitable for adaptation or substitution) before initiating contract action.
    If such “excess personal property” were provided under a contract it would be done so as GFP and the protections provided the parties under the Government Property clause at 52.245-1 would be logical.
    ·  FAR Part 12 may be involved if GFP is provided under a commercial item acquisition solicitation.  If GFP is provided under a FAR Part 12 commercial items acquisition solicitation, FAR 12.301(e) states the following:  “The contracting officer may include in solicitations and contracts by addendum other FAR provisions and clauses when their use is consistent with the limitations contained in 12.302.”  Where GFP is provided the inclusion of the Government Property clause would likely be very appropriate.
    3.  As a last note related to the two above issues, as a Property Administrator I would be MORE interested in the application of DFARS 252.211-7007 entitled “Reporting of Government-Furnished Property.”  You, as the PA, are quite clearly involved with this clause as it impacts the Property Management System.  And though it is interlaced with the IUID and UII marking clauses previously discussed – it is really LESS concerned with the marking aspect than it is with the REPORTING of the RECEIPT of GFP subject to the IUID requirements. 
    As embedded

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