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  • Question

    If our FMS customer pays the contractor to manufacturer cables to run a Software Integration Lab at the contractor's location, are those cables considered Government Furnished Equipment? These are not physical USG items being provided to the contractor for free in support of the SIL. These are items USG put on a separate CLIN for the contractor to manufacturer.


    Answer

    Based on the information provided, the cables are deliverable items that the contractor is being paid to manufacture under a CLIN. The cables are not GFE since they do not meet the FAR 45.101 definitions of “Government property” or “Government-furnished property.”  In this situation, the cables also do not fall within the FAR 45.101 definition of “contractor-acquired property.” Unlike contractor-acquired property, title of the cables will not pass from the contractor until they are delivered under the CLIN. This would still be true even if it were not a FMS contract.

    If the cables did meet the definition of “Government-furnished property” then FAR 45.302 would apply. It states “Requests by, or for the benefit of, foreign Governments or international organizations to use Government property shall be processed in accordance with agency procedures.” For DoD, that means complying with DFARS 245.302. Also, the Government property clause of FAR 52.245-1 would be inserted into the contract. One of the clauses required to be inserted in the contract when FAR 52.245-1 is inserted is DFARS 252.211-7007, Reporting of Government-Furnished Property. DFARS 252.211-7007 states the contractor is to report GFP to the IUID Registry, which is in the Procurement Integrated Enterprise Environment (PIEE), using the procedures at http://www.acq.osd.mil/dpap/pdi/uid/data_submission_information.html.  

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