Overview
FAR Subpart 45.5 outlines the procedures for delegating property administration tasks when Government property is located at subcontractor sites or alternate prime contractor locations. It provides a mechanism for Property Administrators (PAs) to request support from other contract administration offices to ensure comprehensive oversight of Government-furnished or contractor-acquired property regardless of geographical location.
Key Rules
- Delegation of Authority: The Prime Property Administrator has the authority to request support from other administration offices to evaluate property management at remote or subcontractor sites.
- Consent Requirements:
- Subcontractors: Prime contractor consent is generally required for the government to perform support property administration at subcontractor locations.
- Alternate Prime Locations: Consent is not required for delegations involving the prime contractor's own alternate locations.
- Finding Finality: The Prime Property Administrator is required to accept the findings of the delegated Support Property Administrator.
- Reporting Deficiencies: The Prime Property Administrator must notify the prime contractor of any deficiencies found in the subcontractor's property management system as reported by the support administrator.
- Conflict Resolution: If the prime contractor disagrees with the findings of a Support Property Administrator, the matter must be escalated to the Contracting Officer.
Responsibilities
- Prime Property Administrator (PA):
- Identifies the need for support administration.
- Requests support from appropriate contract administration offices.
- Reviews and accepts findings from Support PAs.
- Communicates system deficiencies to the prime contractor.
- Support Property Administrator:
- Conducts property management reviews at the delegated site (subcontractor or alternate location).
- Reports findings and evaluations back to the Prime PA.
- Contracting Officer (CO):
- Resolves instances where the prime contractor refuses to consent to support administration at a subcontractor location.
- Acts as the final authority when the prime contractor non-concurs with the findings of a Support PA.
- Prime Contractor:
- Responsible for the management of property at all locations.
- Must provide consent for subcontractor-level support administration (or justify refusal to the CO).
Practical Implications
- Geographical Efficiency: This subpart allows the government to utilize local resources (such as a local DCMA office) to oversee property in a different state, rather than requiring the Prime PA to travel extensively.
- Subcontractor Oversight Risks: If a prime contractor denies the government access to a subcontractor's site for property administration, it triggers a formal "resolution" process with the Contracting Officer, which could signal a lack of transparency or a high-risk property management system.
- Flow-down Accountability: While the government interacts with the subcontractor via the Support PA, the Prime PA still holds the prime contractor accountable for any deficiencies found at the subcontractor level. This reinforces the principle that the prime contractor is ultimately responsible for all Government property under their contract.
- Streamlined Disputes: By requiring the Prime PA to accept the Support PA’s findings, the regulation prevents internal government "second-guessing," ensuring that disputes are handled at the CO level rather than between different administrative offices.