Government Furnished Property (GFP): Managing Government-Provided Assets

Government Furnished Property (GFP) includes any property in the government's possession, or acquired directly by the government, and subsequently furnished to a contractor.

Types of government property:

• GFE — Government Furnished Equipment
• GFM — Government Furnished Material
• GFI — Government Furnished Information
• Facilities — Buildings, land provided by government

Contractor-acquired property:

• Purchased with contract funds
• Becomes government property per contract
• Same management requirements as GFP

Governing regulations:

• FAR Part 45 — Government Property
• FAR 52.245-1 — Government Property clause
• Agency-specific supplements

Property management requirements:

• Establish property management system
• Maintain accountability
• Protect and preserve property
• Use only for contract purposes
• Return or dispose of properly

Property control system:

• Receiving and identification
• Records maintenance
• Physical inventory
• Subcontractor control
• Reports

Maintenance and preservation:

• Proper storage
• Preventive maintenance
• Calibration (measuring equipment)
• Protection from damage, loss, theft

Use limitations:

• Only for contract performance
• No personal use
• No unauthorized modifications
• Report unauthorized use

Receipt process:

1. Receive property with documentation
2. Inspect for condition and completeness
3. Document any discrepancies
4. Enter into property records
5. Tag or mark as required
6. Report receipt to government

Documentation requirements:

• Government shipping documents
• Transfer documents
• Property records
• Condition documentation

Discrepancy reporting:

• Missing items
• Damaged property
• Wrong items
• Report promptly to CO

Property records:

• Description and identification
• Serial numbers
• Acquisition cost
• Location
• Condition
• Contract number

Tracking requirements:

• Maintain accurate records
• Track location and assignment
• Update records when changes occur
• Report to government as required

Physical inventory:

• Periodic physical counts
• Reconcile to records
• Investigate discrepancies
• Document results

Inventory frequency:

• Per contract requirements
• Annually typical for most property
• More frequent for high-value items
• At contract completion

Subcontractor property:

• Flow down property requirements
• Maintain visibility of sub-held property
• Include in inventories
• Responsibility remains with prime

Reporting requirements:

Report loss, damage, or destruction (LDD) promptly:

• Written report to property administrator
• Describe circumstances
• Estimate value
• Recommend corrective action

Investigation:

• Government may investigate
• Determine cause and responsibility
• Assess contractor liability

Contractor liability:

Contractor may be liable for LDD due to:

• Willful misconduct
• Lack of good faith
• Failure to follow property procedures

Relief from liability:

• Demonstrated reasonable care
• LDD not due to contractor fault
• Natural disasters, theft despite security

Corrective actions:

• Improve controls
• Training
• System changes
• Prevent recurrence

End of contract disposition:

• Return to government
• Transfer to another contract
• Donate or dispose per direction
• Purchase by contractor

Return process:

1. Request disposition instructions
2. Prepare property for return
3. Ship per government direction
4. Document return/transfer
5. Get receipt acknowledgment

Excess property:

• Property no longer needed
• Report to government
• Follow disposition instructions

Scrap and salvage:

• Authorization required
• Document value and disposition
• Credit government as appropriate

Closeout requirements:

• All property accounted for
• No outstanding LDD issues
• Final inventory complete
• Property administrator concurrence

System requirements:

Contract may require an approved property management system.

System elements:

• Written policies and procedures
• Receiving and identification
• Records
• Physical inventory
• Subcontractor control
• Reports

Government reviews:

• Property system analysis
• Periodic reviews
• Corrective action requests
• System approval/disapproval

Disapproved systems:

• Withholds from payments
• Higher government scrutiny
• Corrective action required
• Potential liability

Best practices:

• Dedicated property manager
• Clear procedures
• Regular self-assessments
• Training program
• Management oversight

Frequent problems:

• Inaccurate records
• Missing property
• Unauthorized use
• Poor physical security
• Inadequate maintenance

Causes:

• Inadequate systems/procedures
• Lack of training
• Insufficient resources
• Management attention elsewhere

Consequences:

• Financial liability
• Contract disputes
• System disapproval
• Audit findings
• Future award impacts

Prevention:

• Invest in proper systems
• Train personnel
• Regular audits and inventories
• Management commitment
• Prompt discrepancy resolution