Contractor responsible for safekeeping government property supplied or acquired under contract.
Applicability: Required when government furnishes property or contractor acquires property on government dime.
Key Requirements
Accept responsibility for government property at receipt
Maintain property in good condition and prevent loss/damage
Use property only for contract purposes
Return property upon contract completion or when no longer needed
Common Issues & Pitfalls
Treating government property as contractor property (use beyond scope)
Allowing damage without reporting (contractor pays)
Losing track of government property inventory
Failing to return property at contract end (holds final payment)
Contractor Guidance for Your Bid
Government property belongs to government. Document what you receive. Maintain inventory. Protect it from damage/theft. When contract ends, return everything or pay for replacements. Government audits property closely.
Related FAR Clauses
Frequently Asked Questions
What are the key requirements for FAR 52.245-2: Government Property—Contractor Responsibility?
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Contractor responsible for safekeeping government property supplied or acquired under contract. Required when government furnishes property or contractor acquires property on government dime.
When does FAR 52.245-2 apply to a federal contract?
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Required when government furnishes property or contractor acquires property on government dime.
What are the most common compliance issues with FAR 52.245-2?
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Treating government property as contractor property (use beyond scope) Allowing damage without reporting (contractor pays) Losing track of government property inventory Failing to return property at contract end (holds final payment)
How should contractors approach FAR 52.245-2 in their proposals?
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Government property belongs to government. Document what you receive. Maintain inventory. Protect it from damage/theft. When contract ends, return everything or pay for replacements. Government audits property closely.
What related FAR clauses should contractors review alongside FAR 52.245-2?
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Contractors reviewing FAR 52.245-2 should also study related clauses: 52-217-2, 52-249-1. Understanding how these clauses interact helps avoid compliance gaps that can trigger contract disputes or disqualify bids.
What happens if a contractor fails to comply with FAR 52.245-2?
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Non-compliance with FAR 52.245-2 can result in contract termination for default, withholding of payments, debarment proceedings, or False Claims Act liability. Contracting officers typically issue a cure notice before termination. Contractors should consult with a contract attorney if they receive a cure notice related to this clause.