Overview
Subpart 45.2 prescribes the policies and procedures for preparing solicitations and evaluating offers when Government property is expected to be provided or used. Its primary purpose is to ensure that all offerors are treated fairly by neutralizing any competitive advantage a contractor might gain by using Government-owned assets.
Key Rules
- Mandatory Property Listing: Solicitations must include a detailed inventory of anticipated Government-furnished property (GFP), including National Stock Numbers (NSNs), unit acquisition costs, and unique-item identifiers.
- "As-Is" Disclosure: The Government must explicitly state if property is being provided in "as-is" condition and provide instructions for how offerors can physically inspect the property.
- Cost Responsibility: In competitive acquisitions, the contractor is generally responsible for all costs associated with making the property functional and available, including transportation, installation, and rehabilitation.
- Evaluation Factors: To ensure a level playing field, Contracting Officers must apply a "rental equivalent evaluation factor" to offers from contractors who intend to use Government property rent-free, effectively adjusting their bid price for evaluation purposes to account for the benefit of using Government assets.
- Information Submission: Offerors are required to submit specific data with their bids, including a list of Government property they intend to use, the duration of use, and a description of their property management system.
Responsibilities
- Contracting Officer (CO):
- Inserting the required GFP listings and "as-is" statements into solicitations.
- Defining the evaluation procedures, including rental charges or equivalents.
- Ensuring the offeror’s property management plans and practices are consistent with the solicitation requirements.
- Addressing any additional property management or accountability instructions in the Statement of Work (SOW) or special provisions.
- Offerors/Contractors:
- Identifying all Government property proposed for use on a rent-free basis and providing authorization for that use.
- Calculating and providing the amount of rent that would otherwise be charged under FAR 52.245-9.
- Providing a detailed description of their property management system, including any industry-leading practices or voluntary consensus standards they follow.
- Performing due diligence/physical inspections of property offered "as-is."
Practical Implications
- Leveling the Playing Field: This subpart prevents "incumbent advantage." Without these rules, an incumbent contractor already in possession of Government-owned tooling or facilities would have a significant price advantage over a new competitor who has to buy their own equipment. The "rental equivalent factor" simulates a scenario where everyone has the same overhead costs.
- Due Diligence Requirements: Because the contractor is responsible for transportation and rehabilitation costs, they must carefully inspect the GFP during the solicitation phase. Failing to account for the cost of repairing "as-is" equipment can lead to significant cost overruns post-award.
- Compliance Burden: Contractors must maintain a robust Property Management System that aligns with "customary commercial practices" or "industry-leading standards." They must be prepared to defend these systems during the proposal phase, not just after the contract is awarded.
- Administrative Precision: The requirement to list specific data points (NSN, Unit Acquisition Cost) means the Government must maintain highly accurate records. Inaccuracies in the solicitation listing can lead to protests or claims for equitable adjustment if the property provided does not match the description.