FAR 45.000—Scope of part.
Plain-English Summary
FAR 45.000 defines the scope of FAR Part 45, which governs Government property in the hands of contractors. This section explains that Part 45 covers three main subject areas: providing Government property to contractors, contractors’ management and use of that property, and the reporting, redistribution, and disposal of contractor inventory. It also draws important boundaries around what Part 45 does not cover, including property furnished under statutory leasing authority, property the Government owns only because of financing arrangements such as progress or performance-based payments, disposal of real property, software and intellectual property, and certain on-site property that is merely incidental to the place of performance. In practice, this scope rule tells contracting officers and contractors when the detailed Government property rules apply and when another legal or contractual framework controls. It matters because misclassifying property can lead to incorrect accountability, improper disposal actions, and disputes over ownership, use rights, or reporting obligations.
Key Rules
Part 45 covers Government property
This part applies to the Government’s furnishing of property to contractors and to the contractor’s management and use of that property. It also covers reporting, redistribution, and disposal of contractor inventory.
Statutory leasing authority is excluded
Property provided under a statutory leasing authority is generally outside Part 45. The only express exception is that non-Government use of that property is still subject to 45.301(f).
Financing-related title or liens are excluded
Part 45 does not apply to property where the Government acquires a lien or title solely because of partial, advance, progress, or performance-based payments. Those situations are treated differently from ordinary Government-furnished property.
Real property disposal is outside scope
The disposal of real property is not governed by this part. Separate real property authorities and procedures apply instead.
Software and IP are excluded
Software and intellectual property are not covered by Part 45. Their use, ownership, licensing, and disposition are handled under other legal and contractual rules.
Incidental on-site property is excluded
Government property that is merely incidental to the place of performance is outside Part 45 when contractor personnel must be located on a Government site or installation and the property remains accountable to the Government. Examples include office space, desks, chairs, telephones, computers, and fax machines.
Responsibilities
Contracting Officer
Determine whether the property at issue falls within Part 45 or is excluded by one of the listed exceptions. Ensure the contract uses the correct property clauses and accountability framework for the type of property involved.
Contractor
Identify whether Government property in its possession is subject to Part 45 and comply with the applicable management, reporting, and disposal requirements when it is covered. Avoid treating excluded property as if it were subject to Part 45, or vice versa.
Agency
Provide property oversight policies and procedures consistent with Part 45 for covered property and use the proper authorities for excluded categories such as real property, leased property, or software and intellectual property.
Property Administrator or Other Oversight Official
Apply the correct accountability and disposition rules to contractor-held property that falls within Part 45, and verify that excluded property is handled under the appropriate non-Part-45 regime.
Practical Implications
The first question in any Government property issue is whether Part 45 applies at all; getting that wrong can cause the wrong reporting, inventory, or disposal process to be used.
Contractors working on-site at Government facilities should not assume every Government-owned item is subject to Part 45—many everyday items are excluded as incidental to the place of performance.
Property tied to financing arrangements can create ownership or lien issues without becoming ordinary Government-furnished property, so contracting officers should distinguish payment-related title from furnished property.
Software and intellectual property require separate analysis; they are not managed under the standard Government property rules in Part 45.
When property is excluded from Part 45, another authority must fill the gap, so parties should confirm which clause, statute, or agency policy controls before taking action.
Official Regulatory Text
(a) This part prescribes policies and procedures for providing Government property to contractors; contractors’ management and use of Government property; and reporting, redistributing, and disposing of contractor inventory. (b) It does not apply to- (1) Government property provided under any statutory leasing authority, except as to non-Government use of property under 45.301 (f); (2) Property to which the Government has acquired a lien or title solely because of partial, advance, progress, or performance based payments; (3) Disposal of real property; (4) Software and intellectual property; or (5) Government property that is incidental to the place of performance, when the contract requires contractor personnel to be located on a Government site or installation, and when the property used by the contractor within the location remains accountable to the Government. Items considered to be incidental to the place of performance include, for example, office space, desks, chairs, telephones, computers, and fax machines.