Can I transfer GFE to a contract that will not utilized that GFE but hold for use on a separate contract under a different contractor?
This isn’t as much a question as to whether you can transfer Government-furnished property (GFP) to a contract solely for storage purposes, as much as it is whether you should in the situation that you described. Since there is an existing contract in place that that will use the GFP, it should be transferred to that contract. FAR 45.106 states that Government property is only to be transferred when a firm requirement exists under the gaining contract. Based on your background information there is a firm requirement on the other contract. Transferring the GFP to the contract that it will be used on rightfully places stewardship responsibilities on the contractor using it when the Government property clause of FAR 52.245-1 is inserted in the contract per FAR 45.107. Keep in mind that the contracting officer must comply with FAR 45.102 and DFARS Procedures, Guidance, and Information (PGI) 245.103-70 even when transferring accountability of GFP from one contract to another. The proposal by the program manager would perhaps be acceptable for an interim period if award of a new contract is pending.