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    1. Is this property eligible to be put in the PCARRS system or should it be shipped back to the units for local disposal? 2. Because it is not listed on a contract after it is DD250'd and accepted by the Government, is it contract property and does FAR requirements apply to it? 3. Because the contractor is the Item Manager, do they have a stewardship responsibility for this Government Inventory property when they have not established a record for it in their PMS?


    Answer to question #1: In order for Government property to be processed through the PCARSS system it must have an accountable contract.
    Answer to question #2: If a contract modification was not performed to make the item accountable to the contract it is not considered property accountable to the contract and FAR clause requirements do not apply. It is simply an item of Government Property in the possession of the Contractor.  In accordance with 45.402(a) “…If a deliverable item is to be retained by the contractor for use after inspection and acceptance by the Government, it shall be made accountable to the contract through a contract modification listing the item as Government-furnished property.” 
    Answer to question #3: In order for the Contractor to be the item manager of any Government furnished property, there must be a contract specifically documenting this requirement and this contract must have a listing of Government furnished property in which the contractor has this requirement as the “Item Manager”.  
    Answer #4 (the more applicable answer) What you are describing in your background are items of Government furnished property in need of evaluation and repair not Government furnished property that would normally be accountable as contract property used for the performance of a contract. 
    Government furnished property issued to a contract as an item in need of repair is already accountable to the contract when identified on a CLIN and associated to a performance work statement (PWS)/statement of work (SOW) requirement. Essentially the CLIN makes the Government furnished property accountable and any work performance such as beyond economical repair (BER) thresholds or disposition requirements will be identified specifically for the subject items in the PWS/SOW.  If the PWS/SOW states to use their established disposition procedures, then yes, the items should be processed through PCARSS when applicable.  If the evaluation and repair effort is not identified on a contract as part of a CLIN and statement of work, then the items are not accountable to the contract and should be shipped back to the unit (owning agency).
    Exception:  This does not apply to items that would be covered under warranty or considered a manufacturing defect.  These items would need to be handled through the applicable process such as, Product Quality Deficiency Reporting, Report of Discrepancy, etc.

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