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  • Question

    Is this a true statement? Under a FAR Part 12 Commercial Item Contract Government Property FAR 52.245-1 is not a Christian Doctrine provision nor is it ordinarily included in a Commercial Item award, but could be added as a contract specific provision in the event the Government is providing property or directing the subcontractor to buy specific property. We know that the Doctrine is applicable to a Part 15 contract. We also believe that FAR 45.104 provides direction as to when the -1 should be included in a Part 12.


    Answer

    The Christian Doctrine pertains to a situation where the Termination for Convenience Clause was omitted from a contract. G. L. Christian and Associates had a contract with the Army Corps of Engineers to construct housing units at Fort Polk, LA.  The housing contract was terminated by the U. S. Army Corps of Engineers for the convenience of the Government.  The Termination for Convenience Clause was not in the contract and the contractor claimed that their contract could not be terminated because this clause was not expressly included in it.  The court disagreed with the contractor and ruled that the Termination for Convenience Clause was actually included in the contract by "operation of law" as required by the procurement regulation.  This court case only decided on the Termination of Convenience Clause as it applied to G. L. Christian and Associates.  Reference: G. L. Christian and Associates v. U.S. 312 F.2d 418, 160 Ct. Cl. 1 *419 January 11, 1963.

    FAR 45.104 does not provide direction as to when the -1 should be included in a Part 12. This section of the FAR provides information on "Responsibility and Liability for Government Property" (please read below).


    45.104 -- Responsibility and Liability for Government Property.

    (a) Generally, contractors are not held liable for loss, theft, damage or destruction of Government property under the following types of contracts:

    (1) Cost-reimbursement contracts.

    (2) Time-and-material contracts.

    (3) Labor-hour contracts.

    (4) Fixed-price contracts awarded on the basis of submission of certified cost or pricing data.

    (b) The contracting officer may revoke the Government’s assumption of risk when the property administrator determines that the contractor’s property management practices are inadequate and/or present an undue risk to the Government.

    (c) A prime contractor that provides Government property to a subcontractor shall not be relieved of any responsibility to the Government that the prime contractor may have under the terms of the prime contract.

    FAR 45.107 provides instruction to the contracting officer as to when the appropriate Government Property Clause should be inserted into a contract (read below).


    45.107 -- Contract Clauses.

    (a)

    (1) Except as provided in paragraph (d) of this section, the contracting officer shall insert the clause at

    (i) All cost reimbursement, time-and-material, and labor-hour type solicitations and contracts; and

    (ii) Fixed-price solicitations and contracts when the Government will provide Government property.

    (iii) Contracts or modifications awarded under FAR

    (2) The contracting officer shall use the clause with its Alternate I in contracts other than those identified in FAR

    (3) The contracting officer shall use the clause with its Alternate II when a contract for the conduct of basic or applied research at nonprofit institutions of higher education or at nonprofit organizations whose primary purpose is the conduct of scientific research (see

    (b) The contracting officer shall also insert the clause at

    (c) The contracting officer shall insert the clause at

    (d) Purchase orders for property repair need not include a Government property clause when the acquisition cost of Government property to be repaired does not exceed the simplified acquisition threshold, unless other Government property (not for repair) is provided.

    52.245-1, Government Property, in—Part 12 procedures where Government property that exceeds the simplified acquisition threshold, as defined in FAR 2.101, is furnished or where the contractor is directed to acquire property for use under the contract that is titled in the Government.45.104(a), Responsibility and Liability for Government Property.35.014) is contemplated.52.245-2, Government Property (Installation Operation Services), in service contracts to be performed on a Government installation when Government furnished property will be provided for initial provisioning only and the Government is not responsible for repair or replacement.52.245-9, Use and Charges, in solicitations and contracts when the clause at 52.245-1 is included.

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