FAR 45.502—Subcontractor and alternate prime contractor locations.
Plain-English Summary
FAR 45.502 addresses how Government property administration is handled when subcontractor locations or prime contractor alternate locations are involved. It explains when a property administrator assigned to the prime contract may request support property administration from another contract administration office, when prime contractor consent is required, what happens if the prime contractor refuses consent, how findings from a delegated support property administrator must be treated, and how results of property management reviews must be communicated. The section exists to make sure subcontractor property management is properly reviewed and that Government property administration remains effective even when the work is performed away from the prime contractor’s main location. In practice, it balances administrative oversight needs with the prime contractor’s consent rights for subcontractor sites, while preserving the Government’s ability to use support delegations at prime contractor alternate locations without needing consent. For contractors and contracting officers, this section matters because it determines who can inspect, review, and report on property management systems, and how disputes over access to subcontractor locations are escalated and resolved.
Key Rules
Support may be requested
To ensure subcontractor compliance with Government property administration requirements, the property administrator assigned to the prime contract may request support property administration from another contract administration office. This is a coordination tool used to extend oversight to subcontractor locations.
Consent required for subcontractor sites
If the support property administration will occur at subcontractor locations, the prime contractor’s consent is required. Without that consent, the property administrator cannot proceed on that basis.
Disputes go to the CO
If the prime contractor does not consent to support property administration at subcontractor locations, the property administrator must refer the matter to the contracting officer for resolution. The contracting officer becomes the decision-maker for the access or administration issue.
Prime administrator accepts findings
The prime property administrator must accept the findings of the delegated support property administrator. Those findings are not optional or advisory; they become part of the prime contract property administration record.
Results must be shared
The prime property administrator must advise the prime contractor of the results of property management reviews, including any deficiencies found with the subcontractor’s property management system. This ensures the prime contractor is informed of issues affecting compliance and corrective action.
No consent for alternate locations
Prime contractor consent is not required for support delegations involving prime contractor alternate locations. The consent requirement applies to subcontractor locations, not to alternate locations of the prime contractor.
Responsibilities
Property Administrator Assigned to the Prime Contract
May request support property administration from another contract administration office to help ensure subcontractor compliance with Government property administration requirements. Must refer the matter to the contracting officer if the prime contractor does not consent to support property administration at subcontractor locations.
Delegated Support Property Administrator
Performs the delegated support property administration and issues findings from property management reviews. Those findings are relied upon by the prime property administrator and may identify deficiencies in the subcontractor’s property management system.
Prime Property Administrator
Must accept the findings of the delegated support property administrator and must advise the prime contractor of the results of property management reviews, including any deficiencies found at subcontractor locations.
Prime Contractor
Must provide consent for support property administration at subcontractor locations when requested. Should review and respond to reported deficiencies in property management reviews and address compliance issues in its subcontractor oversight.
Contracting Officer
Must resolve the matter when the prime contractor does not consent to support property administration at subcontractor locations. The contracting officer serves as the escalation point for the dispute.
Contract Administration Office
May provide support property administration when requested, including at subcontractor locations with consent or at prime contractor alternate locations without needing consent.
Practical Implications
This section gives the Government a way to extend property oversight beyond the prime contractor’s main site, which is important when Government property is held or used by subcontractors.
Prime contractors should expect that subcontractor property systems may be reviewed through delegated support administration and that deficiencies will be reported back to them.
A common pitfall is assuming the prime contractor can block all support administration; consent is required for subcontractor locations, but not for prime contractor alternate locations.
Another practical issue is escalation: if consent is withheld for subcontractor sites, the property administrator cannot simply stop the process but must involve the contracting officer.
Contractors should ensure subcontract agreements and internal property controls support timely access, review, and corrective action so that findings from support property administration do not become recurring compliance problems.
Official Regulatory Text
(a) To ensure subcontractor compliance with Government property administration requirements, and with prime contractor consent, the property administrator assigned to the prime contract may request support property administration from another contract administration office. If the prime contractor does not provide consent to support property administration at subcontractor locations, the property administrator shall refer the matter to the contracting officer for resolution. (b) The prime property administrator shall accept the findings of the delegated support property administrator and advise the prime contractor of the results of property management reviews, including deficiencies found with the subcontractor’s property management system. (c) Prime contractor consent is not required for support delegations involving prime contractor alternate locations.