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    -Should a contractor be signing a hand receipt for Army property, and what regulations support the claim? -How should a contractor gain access to Army property to deliver its contract deliverables without signing a hand receipt? -Should the Army equipment be FURNISHED? Please do not reference this old thread: https://dap.dau.mil/aap/pages/qdetails.aspx?cgiSubjectAreaID=28&cgiQuestionID=23006 (It is referencing pre-2007 rewrite FAR clause examples)


    Answer

    Question 1.  Should a contractor be signing a hand receipt for Army property, and what regulations support the claim?
    No, contractor personnel should not be signing hand receipts for Army property.  A contractor organization becomes responsible for stewardship of Government property via the contract, not a hand receipt.  Therefore, the signing of a hand receipt by a contractor employee or contractor organization does not in any way mean that the contractor can be found liable for loss of Government property.  Furthermore, the Government does not hold individual contractor employees responsible or liable for Government property.  The contract is between the Government and the Contractor organization.  Unless specified in the contract, the contractor is not held to Army regulations.  Contractor organizations are required to comply with the  contract terms and conditions.  With regard to property, the contractor is required to comply with the Government Property Clause (GPC) at FAR 52.245-1 and their written property management procedures when government property is provided under the terms and conditions of the contract.  This includes the liability provision, (i.e., limited risk of loss or full risk of loss). 
     
    The Active Army,  the Army National Guard/Army National Guard of the United States, and the U.S. Army reserve, unless otherwise stated have to comply with AR 735-5 Property Accountability (9 November 2016). Paragraph 2–5(e) Army property in possession of contractors states “Responsibility for GFP will be assigned to the contractor using the technical exhibit to the contract.”  (The Department of Defense is required to list Government-furnished property in the contract in accordance with DFARS PGI 245.103-72 Government-furnished property attachments to solicitations and awards).  AR 735-5 further states in paragraph 2–9(d) Relationship between accountability and responsibility “A contractor is charged with direct responsibility for specifically identified GFP provided to the contractor under the terms of the contract.” 
     
    AR 710-2 Supply Policy Below the National Level (28 March 2008) applies to the Active Army,  the Army National Guard/Army National Guard of the United States, and the U.S. Army reserve, unless otherwise stated.  It also applies to the U.S. Army Reserve Officer Training Corps, and the National Defense Cadet Corps.  AR 710-2 - Section X Military Operations Other Than War – paragraph 2–61 Accounting policy for equipment and supplies used in military operations other than war by deploying, deployed, or support activities at the retail levels states that DoD employees must be hand receipt holders for Government property being used by contractors and it prohibits hand receipting and lateral transferring of material, equipment, or supplies to contractors.
     
    Questions 2 and 3.  How should a contractor gain access to Army property to deliver its contract deliverables without signing a hand receipt? Should the Army equipment be FURNISHED?
    Without knowing all of the details pertaining to contractor [physical] access to the Army property needed for contract performance, (e.g., security, location) your second question cannot be fully addressed.  Gaining access should be discussed with the contracting officer and in this case, perhaps the owning activity.  The most obvious way for contractor access to property needed for performance of the contract is for the Army to provide the assets as Government-furnished property (GFP), making it accountable to the contract and placing stewardship responsibility with the contractor.  However, the scope of FAR 45 Government Property must be considered and what it applies to and does not apply to. For instance, it does not apply to Government property that is incidental to the place of performance, when the contract requires contractor personnel to be located on a Government site or installation, and when the property used by the contractor within the location remains accountable to the Government.  The contract should identify property that is incidental to the place of performance of the contract.  The GPC does not cover property that is incidental to the place of performance.  I only point this out because some of the training that your organization conducts takes place on Government installations and there may be property that can be considered as property incidental to the place of performance.

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