FAR 52.245-2

Government Property—Contractor Responsibility

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

1

Accept responsibility for government property at receipt

2

Maintain property in good condition and prevent loss/damage

3

Use property only for contract purposes

4

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.

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