FAR 52.245—[Reserved]

Government Property.

FAR 52.245-1, Government Property, is the core clause governing how federal contracts handle property owned by the Government or acquired for the Government’s use. This section is primarily a definitions clause, and it establishes the vocabulary that drives the contractor’s property management system, the contracting officer’s oversight, and the property administrator’s administration of Government property in contractor possession. It covers key terms such as cannibalize, contractor-acquired property, contractor inventory, contractor’s managerial personnel, demilitarization, discrepancies incident to shipment, equipment, Government-furnished property, Government property, loss of Government property, material, nonseverable property, precious metals, production scrap, property, property administrator, property records, provide, real property, sensitive property, and unit acquisition cost. These definitions matter because they determine title, accountability, reporting, risk of loss, and what property management controls apply throughout performance, closeout, and disposition. In practice, this clause is the foundation for deciding who is responsible for safeguarding, tracking, reporting, repairing, returning, or disposing of property used on a contract. It also distinguishes between property furnished by the Government and property acquired by the contractor but titled to the Government, which is critical for billing, inventory, risk allocation, and final contract settlement.

Government Property Installation Operation Services.

FAR 52.245-2, Government Property—Installation Operation Services, is a specialized government property clause used when the Government furnishes property for installation operation services contracts. It covers the condition of furnished property, the contractor’s right to inspect it, the Government’s lack of warranty, and the contractor’s responsibility if property is lost or becomes unusable. It also addresses who pays for replacement property, who owns replacement property, how unserviceable and scrap property are handled, and when the standard Government Property clause still applies. In practice, this clause shifts significant risk to the contractor: the contractor accepts the property as-is, must keep performing even if property is lost, and must dispose of scrap at its own expense unless the Contracting Officer says otherwise. The clause is important because it defines the baseline allocation of risk and responsibility for Government-furnished property in this contract type and prevents disputes over condition, replacement, and disposal obligations.

[Reserved]

[Reserved]

[Reserved]

[Reserved]

[Reserved]

[Reserved]

Use and Charges.

FAR 52.245-9, Use and Charges, governs when a contractor may use Government property for nongovernmental purposes and what it must pay for that use. It covers the definitions of rental period and rental time, free use of Government property for certain contract performance, rental use for other work, how rental requests are submitted, when use is prohibited until a charge is agreed, how rental charges are calculated for real property and associated fixtures, how rental charges may be calculated for other Government property, when alternative methodologies may be approved, how rental payments are made and when they are due, interest on late payments, the Government’s reservation of rights despite accepting payment, and the Government’s right to revoke nongovernmental use during the rental period. In practice, this clause is about protecting the Government’s ownership interests while allowing limited contractor use when it benefits contract performance or is otherwise authorized. It requires careful coordination with the Administrative Contracting Officer (ACO), especially before any nongovernmental use begins, because unauthorized use can create payment, compliance, and termination issues. Contractors must track rental time accurately, obtain appraisals when required, and keep supporting records that let the ACO verify charges. Contracting officers must ensure use is properly authorized, charges are reasonable, and Government rights are preserved.