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    I have a question regarding contractor acquired property (CAP) which is purchased under a Dept. of State contract overseas which is not a fixed price contract and not real property. Is it possible to transfer or dispose of CAP purchased under a contract through a property grant to a NGO overseas (either US or foreign NGOs)? FAR 45.602 (1) (c ) (iii) states; The Government has authorized the contractor to use the property on another Government contract. Does this also apply if the Government has authorized a grantee to use the property on another Government grant as the property is no longer needed on the original contract? As a secondary question if the answer is yes, would the following steps allow the transfer to take place? 1. Contract Officer makes a modification to the original contract to remove all CAP from the contractor's inventory stating that the government will take ownership of said property. 2. Grants Officer creates a property grant to the NGO (Grantee) transferring the original CAP to the NGO for the purpose of the grant.


    Answer

    Contractor Acquired Property (CAP) is acquired, used, and disposed of in accordance with the terms and conditions of a contract.  It must also comply with all applicable regulatory and statutory requirements associated with these processes.  That includes CAP that is purchased under a Department of State contract overseas.  If the Government Property is located outside the United States then a Status of Forces Agreement (SOFA) may be applicable. 

    If the intent is to transfer the CAP to a Non Government Office (NGO) then it is imperative to contact the appropriate official who has the authority to make the transfer or donation.  This process must be discussed with the Contracting Officer and Plant Clearance Officer who have the authority for contract issues like transfers and disposal actions under the contract where the CAP is accountable.  In this situation it is advisable to contact the Department of State to see what Status of Forces Agreement or other requirements that may be applicable.


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