Overview
This section establishes the framework for determining whether the Government or the contractor holds legal ownership (title) of property acquired under a contracting officer’s authorization.
Key Rules
- Default Vesting: Title to acquired property vests in the parties according to the specific terms and clauses established within the contract.
- Educational Institutions: When FAR 52.245-1, Alternate II is used, title to property with a unit acquisition cost of less than $5,000 vests directly with the contractor.
- Agency Discretion: Agencies are permitted to set higher acquisition cost thresholds for title vesting when contracting with educational institutions.
Practical Implications
- Contractors must carefully review their specific Government Property clauses to understand reporting and disposition requirements, as title dictates who is responsible for the long-term management of the asset.
- The $5,000 threshold for educational institutions reduces administrative burdens by allowing schools to treat low-cost equipment as their own property rather than tracking it as Government-furnished property.