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  • Question

    Does contract A require a losing modification if the CAP is to be treated as a deliverable on a CLIN on contract A? Wouldn't the CAP no longer be accountable to a contract if it is delivered under a CLIN, and thus only a modification to add the property to the gaining GFP attachment would be needed?


    Answer

    If the CO is transferring accountability of Government Furnished Property (GFP) from one contract to another, a modification is required for both the losing and gaining contracts.  Here is what is actually happening with the two required actions.  The losing contract modification is officially releasing the accountability of the government property from the contract and passing it to the next.  The gaining modification is officially accepting the item(s) under accountability.

    If you are only bringing Contractor Acquired Property (CAP) into accountability then no modification is required; however, in order to convert CAP to GFP it must be accepted by the Government and added to the GFP attachment.  A contract does not lose accountability of Government property simply because it is accepted. Delivery instructions would also need to be provided within the CLIN language making it transparent that the items are no longer accountable. If the accepted CAP is still needed for use in the performance of the contract, accountability remains with the contract, and it is added to the GFP attachment per
    PGI 245.103-72, thus being converted to GFP. If the CAP is no longer needed for contract performance it should be identified as excess and dispositioned as authorized.



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