Authorities of the Property Administrator

• The Authorities of the Property Administrator
• FAR part 45 (Government Property) and FAR 52.245-1 (Government Property) convey specific authorities to the Government property administrator:

Authority #1: Determine contractor property management practices inadequate (if appropriate)

FAR Source: 45.105

Specific Statement(s):

   (a) The agency responsible for contract administration shall conduct an analysis of the contractor’s property management policies, procedures, practices, and systems. This analysis shall be accomplished as frequently as conditions warrant, in accordance with agency procedures.

   (b) The property administrator shall notify the contractor in writing when the contractor's property management system does not comply with contractual requirements, shall request prompt correction of deficiencies, and shall request from the contractor a corrective action plan, including a schedule for correction of the deficiencies. If the contractor does not correct the deficiencies in accordance with the schedule, the contracting officer shall notify the contractor, in writing, that failure to take the required corrective action(s) may result in-

           (1) Revocation of the Government’s assumption of risk for loss of Government property; and/or

           (2) The exercise of other rights or remedies available to the contracting officer.

Authority #2: Relieve contractor of responsibility for loss of Government property
FAR Source: 45.105(d)

Specific Statement:

(d) When the property administrator determines that a reported case of loss of Government property is a risk assumed by the Government, the property administrator shall notify the contractor in writing that it is granted relief of stewardship responsibility and liability in accordance with 52.245-1(f)(1)(vii). Where the property administrator determines that the risk of loss of Government property is not assumed by the Government, the property administrator shall request that the contracting officer hold the contractor responsible and liable

Authority #3: Request support from another property administration office
FAR Source: 45.501

Specific Statement:

The property administrator assigned to the prime contract may request support property administration from another contract administration office, for purposes of evaluating prime contractor management of property located at subcontractors and alternate locations.

Authority #4: Approve alternate records data
FAR Source: 52.245-1(f)(1)(iii)(A)

Specific Statement:

(iii) Records of Government property. The Contractor shall create and maintain records of all Government property accountable to the contract, including Government-furnished and Contractor-acquired property. 

     (A) Property records shall enable a complete, current, auditable record of all transactions and shall, unless otherwise approved by the Property Administrator, contain the following:

Authority #5: Approve use of receipt/issue in lieu of formal property records
FAR Source: 52.245-1(f)(1)(iii)(B)

Specific Statement:

(iii) Records of Government property. The Contractor shall create and maintain records of all Government property accountable to the contract, including Government-furnished and Contractor-acquired property.

     (B) Use of a Receipt and Issue System for Government Material. When approved by the Property Administrator, the Contractor may maintain, in lieu of formal property records, a file of appropriately cross-referenced documents evidencing receipt, issue, and use of material that is issued for immediate consumption.

Authority #6: Approve waiver of final inventory requirement
FAR Source: 52.245-1(f)(1)(iv)

Specific Statement:

(iv) Physical inventory. The Contractor shall periodically perform, record, and disclose physical inventory results. A final physical inventory shall be performed upon contract completion or termination. The Property Administrator may waive this final inventory requirement, depending on the circumstances (e.g., overall reliability of the Contractor's system or the property is to be transferred to a follow-on contract).

Authority #7: Approve reasonable inventory adjustments of material
FAR Source: 52.245-1(f)(1)(vii)(C)(1)

Specific Statement:

(vii) Relief of stewardship responsibility and liability. The Contractor shall have a process to enable the prompt recognition, investigation, disclosure and reporting of loss of Government property, including losses that occur at subcontractor or alternate site locations.

      (C) Unless the contract provides otherwise, the Contractor shall be relieved of stewardship responsibility and liability for property when-                         

            (1) Such property is consumed or expended, reasonably and properly, or otherwise accounted for, in the performance of the contract, including reasonable inventory adjustments of material as determined by the Property Administrator

Authority #8: Grant relief of stewardship responsibility
FAR Source: 52.245-1(f)(1)(vii)(C)(2)

Specific Statement:

(vii) Relief of stewardship responsibility and liability. The Contractor shall have a process to enable the prompt recognition, investigation, disclosure and reporting of loss of Government property, including losses that occur at subcontractor or alternate site locations.

     (C) Unless the contract provides otherwise, the Contractor shall be relieved of stewardship responsibility and liability for property when-     

           (2) Property Administrator grants relief of responsibility and liability for loss of Government property;

Authority #9: Approve comingling of Government property with non-Government property
FAR Source: 52.245-1(f)(1)(viii)(B)

Specific Statement:

(viii) Utilizing Government property.

     (B) Unless otherwise authorized in this contract or by the Property Administrator the Contractor shall not commingle Government property with property not owned by the Government.

Authority #10: Direct the contractor to take property management system corrective action
FAR Source: 52.245-1(g)(3)

Specific Statement:

(g) Systems analysis.

     (3) Should it be determined by the Government that the Contractor's (or subcontractor’s) property management practices are inadequate or not acceptable for the effective management and control of Government property under this contract, or present an undue risk to the Government, the Contractor shall prepare a corrective action plan when requested by the Property Administrator and take all necessary corrective actions as specified by the schedule within the corrective action plan.

Authority #11: Direct the contractor to take action to prevent further loss of or to Government property
FAR Source: 52.245-1(h)(2)

Specific Statement:

(h) Contractor Liability for Government Property.

     (2) The Contractor shall take all reasonable actions necessary to protect the Government property from further loss, damage, destruction, or theft. The Contractor shall separate the damaged and undamaged Government property, place all the affected Government property in the best possible order, and take such other action as the Property Administrator directs.