Overview
FAR 45.201 outlines the requirements for how contracting officers must address Government-furnished property (GFP) within solicitations to ensure transparency and competitive fairness. It prescribes the specific data elements required to describe property and details the information offerors must submit regarding their property management systems and intended use of existing Government assets.
Key Rules
- Mandatory Property Listing: Solicitations must include a detailed list of anticipated GFP, including at a minimum: name, part number, description, manufacturer, model, National Stock Number (NSN), quantity, unit acquisition cost, and Unique-item identifier (UII) where applicable.
- "As-Is" Disclosure: The government must explicitly state if property is provided in "as-is" condition and provide instructions for how offerors may physically inspect the property.
- Cost Responsibility: In competitive acquisitions, the solicitation should specify that contractors are responsible for costs associated with making the property usable, such as transportation, installation, and rehabilitation.
- Evaluation Procedures: Solicitations must describe how property will be evaluated (including rental equivalents) and require offerors to identify any Government property they intend to use on a rent-free basis, including the authorization for such use.
- Property Management Plans: Offerors are required to submit a description of their property management system, plan, and any industry-leading practices or voluntary consensus standards they follow.
- Supplemental Instructions: Any property management requirements not covered by the standard clause at FAR 52.245-1 must be specifically detailed in the Statement of Work (SOW) or a special contract provision.
Practical Implications
- Competitive Parity: These rules prevent "incumbent advantage" by requiring the government to evaluate the rental value of property already in a contractor's possession, ensuring a level playing field for new offerors.
- Due Diligence Requirement: The requirement for "as-is" statements and inspection instructions places the onus on the offeror to verify the condition of the property before bidding, as the government generally limits its liability for the condition of such items.
- Compliance Burden: Offerors must maintain a robust, documented property management system that meets FAR standards to be considered for awards involving Government property.