FAR 45.202—Evaluation procedures.
Plain-English Summary
FAR 45.202 explains how contracting officers should evaluate the effect of Government property in a competition and how they should review an offeror’s property management approach. It covers two main subjects: first, the requirement to consider any potentially unfair competitive advantage that may arise when an offeror or contractor already possesses Government property, using a rental equivalent evaluation factor under FAR 52.245-9 for evaluation purposes only; and second, the requirement to ensure the offeror’s property management plans, methods, practices, or procedures for accounting for property are consistent with the solicitation’s requirements. In practice, this section is meant to keep competitions fair when Government-furnished or contractor-held Government property could reduce an offeror’s costs or improve performance capability, while also making sure the selected contractor can properly manage and account for property if awarded the contract. It matters both at the source selection stage and in preaward responsibility/technical review because property-related advantages and weak property controls can affect price realism, competition fairness, and contract administration risk. The section does not itself create a broad property policy; instead, it directs the contracting officer to evaluate property-related issues in a specific, structured way tied to the solicitation and the rental equivalent factor clause.
Key Rules
Adjust for property advantage
If an offeror or contractor already possesses Government property, the contracting officer must consider whether that creates an unfair competitive advantage. For evaluation purposes only, the officer applies the rental equivalent evaluation factor specified in FAR 52.245-9 to level the comparison among offers.
Evaluation only, not payment
The rental equivalent factor is used only to evaluate offers, not to change the actual contract price or create a separate charge to the Government. Its purpose is to make the competition fair, not to alter the substantive terms of the award.
Review property management plans
The contracting officer must ensure the offeror’s property management plans, methods, practices, or procedures for accounting for property match the solicitation’s requirements. This means the offeror’s proposed controls must be adequate for the type and amount of property involved.
Consistency with solicitation
The property management approach must align with what the solicitation requires, including any specific accounting, control, reporting, or stewardship expectations. An offeror cannot rely on a generic property system if the solicitation calls for more detailed or different procedures.
Responsibilities
Contracting Officer
Identify whether Government property in an offeror’s possession could create a competitive advantage, apply the FAR 52.245-9 rental equivalent evaluation factor for evaluation purposes only, and verify that the offeror’s property management plans and accounting procedures are consistent with the solicitation.
Offeror/Contractor
Provide accurate information about Government property in its possession and submit property management plans, methods, practices, or procedures that satisfy the solicitation’s requirements and support proper accounting for property.
Agency
Structure the solicitation so property-related evaluation and accounting requirements are clear, and support the contracting officer in assessing whether the proposed property management approach is adequate and consistent with agency needs.
Practical Implications
This section helps prevent an offeror from gaining an artificial price or performance advantage simply because it already has Government property available for the work.
Contracting officers need to think about property early in the acquisition, because the rental equivalent adjustment can affect evaluation results and source selection outcomes.
A common pitfall is treating the rental equivalent factor as a contract pricing term rather than an evaluation tool only.
Another risk is accepting a property management plan that looks acceptable in general but does not actually meet the solicitation’s specific accounting or control requirements.
Contractors should be prepared to explain how they will track, safeguard, and account for Government property, especially when the solicitation involves furnished property, special tooling, or other controlled assets.
Official Regulatory Text
(a) The contracting officer shall consider any potentially unfair competitive advantage that may result from an offeror or contractor possessing Government property. This shall be done by adjusting the offers by applying, for evaluation purposes only, a rental equivalent evaluation factor as specified in FAR 52.245-9 . (b) The contracting officer shall ensure the offeror’s property management plans, methods, practices, or procedures for accounting for property are consistent with the requirements of the solicitation.