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  • Question

    What means of documentation does the FAR/DFARS state that we as contractors must use in order to turn over CAP assets to the Government (per their request)? These items are not CLIN line item deliverables and it is a cost plus contract.


    Answer

    Contracting officers are required to comply with DFARS Subpart, 245.402-71, Delivery of contractor-acquired property which compels them to, “follow the procedures at (DFARS) PGI 245.402-71 for the delivery of contractor-acquired property.” 
     
    Paragraph (1) of PGI 245.402-71, specifically prohibits the transfer of CAP from one contract to another and it is only upon delivery under a line item that property can be transferred to any other contract and then, only as Government-furnished property (GFP).
     
    Since (as you state in your question), “these items are not CLIN line item deliveries…,” the guidance in paragraph (3), “Contractor-acquired property not anticipated at time of contract award,” applies to your contract situation.
     
    In particular, subparagraph (3)(i) compels the contracting officer, when there is CAP not anticipated at the time of contract award or not otherwise specified for delivery on an existing line item, to direct the contractor to deliver CAP items to the Government on a not separately priced (NSP) line item.
     
    The table at subparagraph (3)(iii) details the information that must be included in a NSP line item.  One bit of required information for the NSP line item is a serial number (UII)*.  That asterisk following the UII compels that CAP items shall be marked as required by DFARS clause 252.211-7003 of your contract.
     
    Why must you, the contractor deliver CAP under a CLIN, thereby supplying all of this information at the request of the contracting officer?
     
    Until you, the steward of Government property (under FAR 52.245-1 and associated clauses) deliver CAP your purchasing system acquires under a cost-type contract, the Government has no official record of its existence for property accountability purposes.  Therefore, the Government, by accepting CAP on a CLIN takes official ownership of this property for accountability/traceability purposes in order to comply with the CFO Act of 1990.
     
     
    References:
    As embedded

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