Two part question. 1. Can you provide FAR or DFAR references and explain the difference between GFE and Government property under the control of contractors? 2 Is there a difference on the investigation process for property lost or damaged between the two categories?
O.k., now it appears that you are in a rather unique – though not unheard of situation. But before I can discuss some solutions – I really need to clarify the EXACT items we are discussing.
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So, my understanding of the problem:
1. A Government entity, i.e., an Army unit turns in its equipment.
a. Normally, this “turn in” process would be to an internal, ARMY activity, for example an accountable property book officer (PBO), but in your example a specific Command is involved.
b. To continue, the PBO or in your case the Command then maintains the accountable records.
c. This property would NOT be considered Government Property (GP) in the possession of or accountable to a CONTRACTOR.
d. This is the normal process that occurs the majority of times.
2. But, YOUR scenario has a CONTRACTOR assisting the Command – and you state that the “…contractor is required to receive, store, and maintain all the property for ASC.”
a. It is at this point that we have to determine, “What does the CONTRACT say?”
i. If the Contract calls out ALL of this property as Government Furnished Property (GFP) ACCOUNTABLE to the contract and stipulated the Government Property (GP) Clause, FAR 52.245-1, and the other clauses that must accompany this clause – then the CONTRACTOR is responsible and accountable for this property. The Contractor must also establish a Property Management System, with all of the processes and records required of that PMS under the GP Clause.
ii. If this GP is accountable under the contract, and the contractor or its employees lose, damage or destroy or if the GP is stolen -- then the Liability Provisions of the Government Property clause apply.
iii. I commend you for your research of the DOD 7000.14R – the DOD DoD Financial Management Regulation in an effort to understand the issues surrounding liability for loss, theft, damage or destruction (LTD&D) of Government property.
1. And though Government Property in the possession of Contractors is briefly addressed, generally DOD 7000.14R does NOT apply to this property – rather another DOD Manual does, i.e., DOD 4161.2-M. Therefore, the DD Form 200 – A Financial Liability Investigation of Property Loss – affectionately referred to as a FLIPL – also would NOT GENERALLY apply!
2. Rather, the Contractor, in accordance with the GP clause in the contract, will report any LTD&D to the cognizant Property Administrator (PA), usually a Defense Contract Management Agency (DCMA) employee – though other DoD activities have PAs as well!
iv. Now, if a Government employee, military or Government civilian employee were to lose or damage Government property – then a FLIPL would be appropriate.
3. But, I do have to address one other issue from my experience. I have seen in a number of situations where a Contractor is employed to provide a service to the Government – such as in this case where the Contractor is contracted to “assist the accountable officer in receiving and transferring property from the unit property records to the ASC property records.” Please note that I emphasized this last part. It appears that the contractor is NEVER made ACCOUNTABLE for the Government property. Rather, they are just serving in an administrative capacity – processing the paper work. But, then you say that they are to “receive, store, and maintain all the property for ASC.” So there is an intermediary step in the process. So I really see TWO different situations
SITUATION # 1
ARMY ---------------------------------------------→ ARMY
UNIT transfer ASC
PROPERTY to PROPERTY
SITUATION # 2
└----------→ Government Property -------------------┘
Is Transferred to Contractor
Who establishes RECORDS
Of GP ACCOUNTABLE under
their contract and then
Stores and Maintains the GP –
At some point the Contractor then
UPDATES ASC PROPERTY RECORDS
Bottom line –
1. You need to clarify in your contract whether or not the Contractor becomes ACCOUNTABLE for the Government Property under the Contract. From your question – there appears to be some confusion. My personal opinion – this contract really required two separate requirements:
a. One service requirement to receive, store and maintain that property, received from the Army Units, as Government Furnished Property ACCOUNTABLE under that contract, with all the requirements of a Property Management System. And then, upon physical transfer of the GP from the contractor back to the Army– apply the second requirement.
b. The second service requirement -- upon physical transfer of the GP to the Army ASC – update ASC’s Property Record.
This would also then clarify WHO is responsible for any loss, theft damage or destruction of GP as you establish an instant in time when the contractor becomes ACCOUNTABLE for the GP and follows the Contract Property Liability requirements versus the Army following the DOD Financial Management Regulations when an Army or Government Civilian