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Government Property

This Community serves as a resource for Government Property Administrators and Plant Clearance Officers. The community provides information and resources to support the proper management and oversight of government property. With over $100 billion worth of Government property in the hands of Department of Defense contractors Government property impacts the development and fielding of virtually every major weapon system platform today. It is hoped that this community will help you learn and understand more about this critical acquisition field.

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Discussions / Government Property
FAR 52.245-1 and FAR52.245-2
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Under 52.245-1 (d)(2)(iii) states The Government may, at its option, furnish property in an "as-is" condition. The Contractor will be given the opportunity to inspect such property prior to the property being provided. In such cases, the Government makes no warranty with respect to the serviceability and/or suitability of the property for contract performance. Any repairs, replacement, and/or refurbishment shall be at the Contractor’s expense.

Under 52.245-2 states This Government Property listed in paragraph (e) of this clause is furnished to the Contractor in an "as-is, where is" condition. The Government makes no warranty regarding the suitability for use of the Government property specified in this contract. The Contractor shall be afforded the opportunity to inspect the Government property as specified in the solicitation.

(b) The Government bears no responsibility for repair or replacement of any lost Government property. If any or all of the Government property is lost or becomes no longer usable, the Contractor shall be responsible for replacement of the property at Contractor expense. The Contractor shall have title to all replacement property and shall continue to be responsible for contract performance.

(c) Unless the Contracting Officer determines otherwise, the Government abandons all rights and title to unserviceable and scrap property resulting from contract performance. Upon notification to the Contracting Officer, the Contractor shall remove such property from the Government premises and dispose of it at Contractor expense.

(d) Except as provided in this clause, Government property furnished under this contract shall be governed by the Government Property clause of this contract.

(e) Government property provided under this clause:

 

 52.245-2(b) states The Contractor shall have title to all replacement property and shall continue to be responsible for contract performance.

 

So my question is does the contractor still own title under 52.245-1 (d)(2)(iii)?

9 - Respond to Special Requests
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Pre-Award stage

Performance stage

Sustainment/Disposal stage

 
  1. Review Contract and Accept Contract Assignments
  2. Establish Property Admin Records
  3. Report Contract Deficiencies
  4. Construct a Risk Analysis
  5. Establish Property Audit Objectives
  6. Plan a PMSA
  7. Conduct a PMSA
  8. Respond to Reports of Property Loss
  9. Respond to Special Requests
  10. Dispose of property that is no longer required
 

PURPOSE:

Respond to unplanned events such as contract modification, such as requests for non-interference use (FAR 52.245-9); contract termination, contractor bankruptcy, a need for corrective action, and a need for a change of limited risk.

DETAILED GUIDANCE AND POLICY:

OVERVIEW OF GOVERNMENT TASKS:

Analyze requests for property specialist assistance

Accept or decline requests for assistance using these means:

  • Letter accepting request and identifying points of contact
  • Correspondence to define parameters for task completion
  • Letter explaining reason for declining

Deliver assistance

  • Plan project milestone calendar
  • Create checklist of resources needed
  • Execute

Document completion

  • Summary letter with return receipt

Disclaimer: The information contained in this resource should not be construed as official guidance. This job aid is a work in progress. Please submit suggestions to [email protected] for how this tool can better support your performance

 

8 - Respond to Reports of Property Loss
View Event

 

Pre-Award stage

Performance stage

Sustainment/Disposal stage

 
  1. Review Contract and Accept Contract Assignments
  2. Establish Property Admin Records
  3. Report Contract Deficiencies
  4. Construct a Risk Analysis
  5. Establish Property Audit Objectives
  6. Plan a PMSA
  7. Conduct a PMSA
  8. Respond to Reports of Property Loss
  9. Respond to Special Requests
  10. Dispose of property that is no longer required
 

PURPOSE:

Authorizes repairs or replacement to restore property that is required in the event of a property loss, or closes the account, with a determination of liability.
 

DETAILED GUIDANCE AND POLICY:

OVERVIEW OF GOVERNMENT TASKS:

  1. Receive contractor report of loss (formerly known as a LTDD report) via Property Loss eTool (Note: Contractors create report IAW the DFARS 252.245-7002 by registering for EWAM)
  2. Review report in Property Loss eTool for acceptability, and if appropriate, open a property loss case
     
  3. Investigate circumstances of loss; coordinate investigation if lost property is sensitive
  4. Analyze cause to determine liability and determine how to mitigate risk of further loss
  5. Review applicable contract terms and conditions
  6. Complete case summary in the Property Loss eTool
  7. Document contractor implementation of corrective actions and identify undue risks for contracting officer attention
  8. Distribute findings through LTDD eTool and to contracting office
  9. Annotate contractor property file in order to track trends in loss
  10. Support repair or replacement if necessary
  11. Update property record to reflect current status

OTHER RESOURCES:

Contributions will be appreciated to post examples for: 

  • Letter documenting undue risks to Contracting Office
  • Correspondence notifying contracting office of findings
  • Documenting trends in loss

Disclaimer: The information contained in this resource should not be construed as official guidance. This job aid is a work in progress. Please submit suggestions to [email protected] for how this tool can better support your performance. 

 

7 - Distribute History
View Event

 

Pre-Award stage

Performance stage

Sustainment/Disposal stage

   
  1. Require or waive the final inventory
  2. Confirm updates to the Property Record
  3. Assist with Shipments
  4. Administer FAR 45.6 Disposal
  5. Coordinate Demilitarization
  6. Certify completion
  7. Distribute history

PURPOSE:

Complete property and plant clearance administrative delegations by delivering contract property file to CAO for distribution to stakeholders

DETAILED GUIDANCE AND POLICY:

No specific guidance

OVERVIEW OF GOVERNMENT TASKS:

  1. Organize property file and remove outdated or redundant documents
  2. Deliver the Property Contract File to the ACO
  3. Input property file closeout date to workload management system

Disclaimer: The information contained in this resource should not be construed as official guidance. This job aid is a work in progress. Please submit suggestions to [email protected] for how this tool can better support your performance.

 

Discussions / Government Property

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Events / Government Property

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Resources / Government Property

Community Resource / Government Property
4 - Administer FAR 45.6 Disposal

 

Pre-Award stage

Performance stage

Sustainment/Disposal stage

   
  1. Require or waive the final inventory
  2. Confirm updates to the Property Record
  3. Assist with Shipments
  4. Administer FAR 45.6 Disposal
  5. Coordinate Demilitarization
  6. Certify completion
  7. Distribute history

PURPOSE:

Provide disposal directions in accordance with regulatory guidance for property that had no contractual direction, in order to close the contract property account.

DETAILED GUIDANCE AND POLICY:

See guidance and policy links in “Dispose of Property that is No Longer Required

OVERVIEW OF GOVERNMENT TASKS:

Tasks in this stage mirror actions taken during the contract performance for items that had no future requirement. Please follow steps in “Dispose of Property that is No Longer Required

Disclaimer: The information contained in this resource should not be construed as official guidance. This job aid is a work in progress. Please submit suggestions to [email protected] for how this tool can better support your performance.

 

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Community Resource / Government Property
3 - Support Source Selection

 

Pre-Award stage

Performance stage

Sustainment/Disposal stage

  1. Assist in Construction of a Business Case for Property
  2. Support Solicitation
  3. Support Source Selection
   

PURPOSE:

Minimize risk of a contract being awarded to a contractor who is unable to manage property adequately to protect the Government’s interests.

DETAILED GUIDANCE AND POLICY:

Guidelines to determine whether prospective contractors are responsible: FAR 9.104-1(e)

OVERVIEW OF GOVERNMENT TASKS:

  1. Attend pre-award conferences to provide support, clarify terms, and address Government property questions.
  2. Determine whether prospective contractors have sufficient property control systems to meet the standards required, IAW FAR 9.104-1(e)

OTHER RESOURCES:

TBD

Disclaimer: The information contained in this resource should not be construed as official guidance. This job aid is a work in progress. Please submit suggestions to [email protected] for how this tool can better support your performance.

 

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Community Resource / Government Property
3 - Report Contract Deficiencies

 

Pre-Award stage

Performance stage

Sustainment/Disposal stage

 
  1. Review Contract and Accept Contract Assignments
  2. Establish Property Admin Records
  3. Report Contract Deficiencies
  4. Construct a Risk Analysis
  5. Establish Property Audit Objectives
  6. Plan a PMSA
  7. Conduct a PMSA
  8. Respond to Reports of Property Loss
  9. Respond to Special Requests
  10. Dispose of property that is no longer required
 

PURPOSE:

Support the creation of a comprehensive, correct contract with clear and appropriate terms for Government property. Prevent the administration of inadequate contracts or inappropriate terms.

DETAILED GUIDANCE AND POLICY:

OVERVIEW OF GOVERNMENT TASKS:

  1. Retrieve notes on any ambiguities, omissions, or potential issues discovered in Step one, Review the Contract.
  2. Ensure contracts contain clear and appropriate terms and conditions, including
    • Property clauses
      • Include basic property clause FAR 52.245-1
      • Include clause for non-interference use FAR 52.245-9
    • Listing of Government property
    • Locations for contract performance
    • Disposition instructions 
      • Demilitarization instructions
      • Any other information that supports oversight of Property
  3. Submit report using either EDA application, or, if unavailable, send DD Form 1716 for Contracting Officer review
    • Describe the basis for the finding of each discrepancy
    • For each discrepancy cite law, policy, or guidance
    • Verify currency of contact information
  4. Follow up with the Contracting Officer to support their efforts to resolve deficiencies, as needed.

Disclaimer: The information contained in this resource should not be construed as official guidance. This job aid is a work in progress. Please submit suggestions to [email protected] for how this tool can better support your performance. 

 

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Community Resource / Government Property
3 - Assist with Shipments

 

Pre-Award stage

Performance stage

Sustainment/Disposal stage

   
  1. Require or waive the final inventory
  2. Confirm updates to the Property Record
  3. Assist with Shipments
  4. Administer FAR 45.6 Disposal
  5. Coordinate Demilitarization
  6. Certify completion
  7. Distribute history

PURPOSE:

Coordinate transportation assistance to avoid delays in shipments to the Government for final disposal.

DETAILED GUIDANCE AND POLICY:

  • Guidance for transportation assistance for civilian and military offices: FAR 47.105
  • Policies for transportation of supplies to and from contractors under fixed-price contracts FAR 47.300
     
  • Guidance for preparing the Bill of Lading for transportation services: FAR 52.247-1
     

OVERVIEW OF GOVERNMENT TASKS:

  1. Review shipping request to verify completeness and authorization
  2. Coordinate inspection of packaging and marking
  3. Monitor the shipment and confirm the receipt was without any discrepancy

OTHER REFERENCES:

Disclaimer: The information contained in this resource should not be construed as official guidance. This job aid is a work in progress. Please submit suggestions to [email protected] for how this tool can better support your performance.

      

 

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Community Resource / Government Property
2 - Support Solicitation

 

Pre-Award stage

Performance stage

Sustainment/Disposal stage

  1. Assist in Construction of a Business Case for Property
  2. Support Solicitation
  3. Support Source Selection
   

PURPOSE:

Appropriately submit property clauses for solicitation to establish Government and contractor responsibilities.

DETAILED GUIDANCE AND POLICY:

  • Description of property-related warranties and limitations of liability: FAR 52.245-1
    • What Government warrants regarding delivery: FAR 52.245-1(d)
    • When Government has title to property: FAR 52.245-1(e)
    • Contractor responsibilities: FAR 52.245-1(f)
  • Guidelines for incorporating property clauses and alternates into a solicitation FAR 45.107, Contract Clauses
    • When to use Alternate 1: FAR 45.107(a)(2)
    • When to use Alternate 2: FAR 45.107(a)(3)
    • Format for creating the contract property account for each item of Government-furnished or contractor-acquired property: PGI 245.103-70

OVERVIEW OF GOVERNMENT TASKS:

  1. Ask contracting officer (CO) to identify contract type (fixed-price or cost-reimbursement)
  2. Use contract type to determine what warranties apply and when the Government will take title to property
  3. Prepare list of property Government will provide
    • Identify any property that should be provided as-is in solicitation
    • Identify any property provided on a non-interference basis
  4. Articulate the contractor’s limitation of liability in the pre-award discussions to ensure that the contractor understands the Government’s self-insurance policy
  5. Determine whether Alternate I applies (such as when the contract is not one of the types listed in FAR 45.104, Responsibility and liability for Government property). Specifically, Alternate 1 applies if
    • Contract type does not appear on list at 45.104(a)
    • OR when CO revokes Government’s assumption of risk due to undue risk, IAW 45.104(b)
    • OR when property is provided to a subcontractor IAW 45.104(c)
  6. Identify any installation operation services property that meets the criteria in FAR 45.107(b)
  7. Incorporate property clauses and alternates into solicitation

OTHER RESOURCES:

Disclaimer: The information contained in this resource should not be construed as official guidance. This job aid is a work in progress. Please submit suggestions to [email protected] for how this tool can better support your performance.

 

 

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Community Resource / Government Property
2 - Establish Property Administration Records

 

Pre-Award stage

Performance stage

Sustainment/Disposal stage

 
  1. Review Contract & Accept Assignments
  2. Establish Property Admin Records
  3. Report Contract Deficiencies
  4. Construct a Risk Analysis
  5. Establish Property Audit Objectives
  6. Plan a PMSA
  7. Conduct a PMSA
  8. Respond to Reports of Property Loss
  9. Respond to Special Requests
  10. Dispose of property that is no longer required
 

PURPOSE:

Create auditable files in a standard format. This will facilitate the transfer of assignments between PAs and SPA, the flagging of action items, and the support of data calls.

DETAILED GUIDANCE AND POLICY:

Guidance for establishing a property management system file: Guidebook for Contract Property Administration, Chapter 1, Section 5.0.
 

OVERVIEW OF GOVERNMENT TASKS:

Establish a file structure with the following suggested sections:

  1. Contract review
    1. Contract clauses and terms
    2. Introduction letter
    3. List of reports to distribute to various stakeholders
    4. Contract Deficiency Report (CDR)
    5. Support delegations (if any)
  2. Procedures
    1. Current copy of contractor’s written procedures
    2. PA’s review of procedures
    3. Reference standards
  3. Risk assessments
    1. System risk analysis
    2. Process risk analysis
  4. Property Management System Audit (PMSA)
    1. Audit plan
    2. Government audit documentation
    3. Contractor internal audit documents
    4. Audit documentation
    5. Audit summary
    6. Corrective actions
  5. Reports
    1. Reports of site visits
    2. Physical inventory results
    3. Reports of excess
    4. Reports of loss
    5. Other reports
  6. Closeout checklist
  7. General Property Administration correspondence

Disclaimer: The information contained in this resource should not be construed as official guidance. This job aid is a work in progress. Please submit suggestions to [email protected] for how this tool can better support your performance. 

 

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Community Resource / Government Property
2 - Confirm Updates to the Property Record

 

Pre-Award stage

Performance stage

Sustainment/Disposal stage

   
  1. Require or waive the final inventory
  2. Confirm updates to the Property Record
  3. Assist with Shipments
  4. Administer FAR 45.6 Disposal
  5. Coordinate Demilitarization
  6. Certify completion
  7. Distribute history

PURPOSE:

Maintain the owning agency’s audit trail for the property account.

DETAILED GUIDANCE AND POLICY:

  1. Minimum data requirements for Property Record. Specifically, guidance to post/input disposal transactions: DoDI 5000.64 Section 4.6, Data Elements
  2. Explanation of contractor’s obligation to maintain systems for effective control of Government property: FAR Subpart 52.245-1(b)
     

OVERVIEW OF GOVERNMENT TASKS:

  1. Review requirements for IUID Registry, CAV, or other Property Record
  2. Confirm that Property Record has
    • Posting Reference (supporting document)
    • Transaction type
    • Transaction date
  3. Confirm that Accountable Property Officer received updated status

Disclaimer: The information contained in this resource should not be construed as official guidance. This job aid is a work in progress. Please submit suggestions to [email protected] for how this tool can better support your performance.

 

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10 - Dispose of property that is no longer required

 

Pre-Award stage

Performance stage

Sustainment/Disposal stage

 
  1. Review Contract and Accept Contract Assignments
  2. Establish Property Admin Records
  3. Report Contract Deficiencies
  4. Construct a Risk Analysis
  5. Establish Property Audit Objectives
  6. Plan a PMSA
  7. Conduct a PMSA
  8. Respond to Reports of Property Loss
  9. Respond to Special Requests
  10. Dispose of property that is no longer required
 

PURPOSE:

Bring the contract property account for excess property to an auditable final zero balance

DETAILED GUIDANCE AND POLICY:

  • Policies and procedures for reporting, reutilization, and disposal: FAR 45.6
     
  • Policy for reporting, redistribution, and disposal of contractor inventory: DFARS 245.6
  • Plant Clearance DCMA Manual 2501-04
     

OVERVIEW OF GOVERNMENT TASKS:

  1. Receive contractor report of excess (“inventory schedule”) via PCARSS
  2. Review report in PCARSS for acceptability, and accept if appropriate. This opens a plant clearance case (PCC).
  3. Apply the screener rule in PCARSS
  4. Create a case in PCARSS
  5. Verify details of report using SF 1423, and then enter into PCARSS
  6. Complete PCC screening in PCARSS
  7. Evaluate and select disposal options, and input code into PCARSS for remaining disposal actions (e.g., sell, donate, abandon) (see section 45.603 and 45.604-1 of DFARS 245.6)
  8. Notify contractor of final disposal directions (see templates below) 
  9. Support contractor’s compliance, and document completion of all disposal actions
  10. Close PCC in PCARSS (see DFARS 45.605)

OTHER RESOURCES:

  • PCARSS resource page (includes WBT, Flat File Transfer, Template, User manual, and student resources)
    • Detailed PCARSS tutorials
    • PCARSS User manual
  • Templates for notifying contractor of final disposal directions (list is not comprehensive)
    • Donate to school (Executive Order 12999) or nonprofit
    • Abandon
    • Demilitarize
    • Sale as scrap
    • Scrap to overhead
    • Ship according to Government directions
    • Transfer in place to another contract
    • Informal sale
    • Formal sale
    • Hard drive sanitation
    • Turn in to DLA Disposal Services (formerly DRMO)
       
  • Plant Clearance section of the Contract Admin & Pricing CoP
     

    •  

Disclaimer: The information contained in this resource should not be construed as official guidance. This job aid is a work in progress. Please submit suggestions to [email protected] for how this tool can better support your performance

 

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Documents / Government Property

Government Property Justification Documents
Document Type:
Document
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Summary

DFARS Procedures, Guidance, and Information (PGI) 245.103-70, Furnishing Government property to contractors states that the requiring activity (project or program manager, or purchase request generator) is the decision point as to whether or not to furnish property to contractors.  Prior to furnishing Government property to the contractor, the contracting officer shall ensure that each of the requirements of FAR 45.102 are addressed and documented in the contracting file.  Documentation shall address the four elements listed in DFARS PGI 245.103-70(2). These are examples of forms that are completed by contracting officers to document the justification for providing Government property to contractors. The Department of Defense has not established a standard format for this documentation.  The contract file is to be documented in accordance with agency procedures.  The examples will benefit organizations as guides to creating their own format.

Government Property Clause Insertion Compliance
Document Type:
Document
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Summary

Memorandum signed by Mr. Richard Ginman, Director, DPAP, reiterating the requirement to include the FAR Government Property Clause 52.245-1 and the associated DFARS clauses is cost-reimbursable and time and material contracts. Reinforces the requirement to include FAR 52.245-1 and associated DFARS clauses in cost-reimbursement and time and material contracts. Reference Link: Government Property Clause Insertion Compliance (http://www.acq.osd.mil/dpap/policy/policyvault/USA005553-14-DPAP.pdf)

Table 90
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Summary

GPG

Table 95
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GPG

Standard Form 1103
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Summary

U. S. Government Bill of Lading

Table 97
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Summary

GPG

Class Deviation - Reporting Inventory Disposal Schedules
Document Type:
Document
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Summary

Changes requirment for contractors to complete inventory disposal changes in the DCMA Plant Clearance Automated Reutilization Screening System (PCARSS) to use of the Government Furnished Property (GFP) Module of the Procurement Integrated Enterprise Environment (PIEE).

Guidebook for Contract Property Administration, December 2014
Document Type:
Document
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Summary

The Government relies on and requires its contractors to provide effective and efficient stewardship of the Government property in their custody. This stewardship responsibility, codified in the Federal Acquisition Regulation (FAR) clauses 52.245-1, Government Property, and 52.245-2, Government Property Installation Operation Services, is the subject of this Guidebook. The policies and procedures presented in this Guidebook are designed to implement the requirements of the FAR, facilitate the effective and efficient oversight of contractors, maximize the Department’s return on investment and achievement of best value; and protect the Government’s interests.  The terms and condition of the contract take precedence over the requirements of this Guidebook. This Guidebook replaces the Guidebook for Contract Property Administration (April 2012), which replaced DoD 4161.2-M, DoD Manual for the Performance of Contract Property Administration (1991). The intent/outcome/purpose of this Guidebook is to provide a policy framework for Government property stakeholders: Program Managers (PMs), Contracting Officers (COs), Contract Specialists (CSs), and Accountable Property Officers, along with those designated the responsibility of oversight of stewardship, including Property Administrators (PAs) and Plant Clearance Officers (PLCOs). Reference Link: DPAP Program Development and Implementation (http://dodprocurementtoolbox.com/page/gfp/resources)

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