FAR 52.251-1—Government Supply Sources.
Plain-English Summary
FAR 52.251-1, Government Supply Sources, is a short but important clause that governs when a contractor may use Government-owned supply sources to perform a contract. It addresses four core topics: the contracting officer’s authority to issue an authorization, the contractor’s ability to obtain supplies from Government sources only when authorized, the ownership of property acquired under that authorization, and the application of the Government Property clause at FAR 52.245-1 to that property. In practice, the clause is used to control access to Government inventories, depots, or other supply channels and to make clear that items obtained through those channels generally become Government property rather than contractor-owned property. This matters because it affects purchasing procedures, property accountability, risk of loss, recordkeeping, and how the contractor must manage, use, and dispose of the acquired items. The clause also helps ensure that Government supply sources are used only when the contract and the contracting officer permit it, rather than as a default procurement method. For contractors, the key significance is that authorization is required and property rules follow immediately once the authorization is granted; for contracting officers, the key significance is maintaining control over when Government supply sources may be used and how resulting property is treated.
Key Rules
Authorization is required
The contractor may use Government supply sources only if the contracting officer issues an authorization. The clause does not create a blanket right to use those sources; it gives the contracting officer discretion to permit use when appropriate.
Government title usually vests
Property acquired by the contractor under the authorization becomes Government property unless the contract says otherwise. This means the contractor generally does not own the items it obtains through the authorized Government source.
Government Property clause applies
All property acquired under the authorization is subject to FAR 52.245-1, Government Property. That brings in the full set of Government property management requirements, including accountability, control, use, maintenance, and disposition rules.
Contract terms can override title
The clause allows the contract to specify a different title arrangement. If the contract expressly states otherwise, that contract language controls the ownership outcome for property acquired under the authorization.
Use is tied to contract performance
The authorization is for performance of the contract, not for general contractor purchasing convenience. The contractor must use Government supply sources only in connection with the contract work and within the scope of the authorization.
Responsibilities
Contracting Officer
Decide whether to authorize use of Government supply sources, issue the authorization when appropriate, and ensure the contract clearly states any different title arrangement if Government ownership is not intended. The contracting officer must also ensure the contractor understands that FAR 52.245-1 applies to property acquired under the authorization.
Contractor
Obtain and use Government supply sources only when authorized, use the items only for contract performance, and treat property acquired under the authorization as Government property unless the contract says otherwise. The contractor must comply with all applicable Government property management requirements under FAR 52.245-1.
Agency
Maintain and administer Government supply sources in a way that supports authorized contract performance and protects Government property interests. The agency must also ensure internal procedures align with the contracting officer’s authorization and property accountability requirements.
Practical Implications
Contractors should not assume they can draw from Government supply sources unless they have explicit contracting officer authorization.
Once items are acquired under the authorization, they are generally Government property, so normal contractor-owned inventory assumptions do not apply.
Property management, records, and controls must follow FAR 52.245-1, which can create audit and accountability obligations beyond ordinary purchasing.
If the contract is silent on title, the default rule is Government ownership, so contractors should check the contract language before relying on any different assumption.
A common pitfall is treating authorized Government-source items like contractor purchases; that can lead to property control, billing, and disposition problems.
Official Regulatory Text
As prescribed in 51.107 , insert the following clause: Government Supply Sources (Apr 2012) The Contracting Officer may issue the Contractor an authorization to use Government supply sources in the performance of this contract. Title to all property acquired by the Contractor under such an authorization shall vest in the Government unless otherwise specified in the contract. The provisions of the clause at FAR 52.245-1 , Government Property, apply to all property acquired under such authorization (End of clause)