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  • Question

    Is there a limitation to the type of property and value threshold? An example would be the contractor only reporting LDDT on Special Tooling, Special Test Equipment and GFE/GFM in PIEE.


    Answer

    The following response is based solely on the question and background information provided.

    The two contract clauses covering reporting loss of Government property are FAR 52.245-1 (GPC) and DFARS 252.245-7002 Reporting Loss of Government Property (DEVIATION 2020-O0004). In general, the only two criteria considered are (1) is it “Government property” defined under the GPC and (2) is it a “Loss” defined under the GPC and DFARS clause. These definitions are:

    FAR 52.245-1(a) - “Government property” means all property owned or leased by the Government. Government property includes both Government-furnished and Contractor-acquired property. Government property includes material, equipment, special tooling, special test equipment, and real property. Government property does not include intellectual property and software.

    DFARS 252.245-7002(a) - “Loss of Government property” means unintended, unforeseen, or accidental loss, damage, or destruction of Government property that reduces the Government’s expected economic benefits of the property. Loss of Government property does not include purposeful destructive testing, obsolescence, normal wear and tear, or manufacturing defects. Loss of Government property includes, but is not limited to—(1) Items that cannot be found after a reasonable search; (2) Theft; (3) Damage resulting in unexpected harm to property requiring repair to restore the item to usable condition; or (4) Destruction resulting from incidents that render the item useless for its intended purpose or beyond economical repair.

    Your question lists several types and categories of Government property (Special Tooling, Special Test Equipment and GFE/GFM), omitting Contractor-acquired property that is classified as equipment and material. Neither of these types of property are categorically exempted by these clauses.

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