FAR 52.245-1 — Government Property
Establishes contractor obligations for receiving, maintaining, accounting for, and disposing of government property provided for contract performance.
When This Clause Applies
Required in contracts where government property will be provided to or acquired by the contractor.
What This Means for Contractors
Contractor is responsible for property accountability, proper use, maintenance, and ultimate disposition. Loss/damage triggers contractor liability unless excused. Property Management System (PMS) review by DCMA is common; PMS adequacy is a precondition for major government-furnished property awards.
Common Pitfalls
- 1Inadequate property records and inventory controls
- 2Failing to obtain DCMA PMS adequacy determination
- 3Improper disposition of excess property
- 4Not reporting loss/damage promptly
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