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  • Question

    When a University (UARC) acting as a Prime Contractor directs a Subcontractor to return residual Contractor Acquired Property (CAP) (material) to the Prime does the Prime get to retain title to CAP (material) with an acquisition cost of less than $5k based on FAR Clause 52.245-1 Alt II?


    Answer

    Yes, but it is subject to the government contracting officer having given approval before each acquisition as indicated by the first sentence of Alt II. If the contracting officer provided no such approval in writing, then the prime contractor does not retain title to the contractor-acquired property.

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