Why Part 45 Matters

Government property management is a significant compliance obligation. Contractors holding government property must maintain approved property management systems, conduct physical inventories, and report excess property. A disapproved property management system can result in payment withholds. Loss, damage, or destruction of government property may create contractor liability. The decision to furnish government property vs. contractor acquisition has direct cost and schedule implications.

Key Topics in Part 45

FAR Part 45 addresses several critical areas of the federal acquisition process. Understanding these topics is essential for both contracting officers and contractors working within this regulatory framework.

• Government-furnished property (GFP) policies
• Contractor-acquired property (CAP)
• Property management system requirements
• Physical inventory and recordkeeping
• Loss, damage, or destruction of government property
• Disposition and disposal of government property (Subpart 45.6)
• Government property clauses and reporting

How FAR Part 45 Applies

The Federal Acquisition Regulation is organized into 53 parts, each covering a distinct area of the procurement process. Part 45 (Government Property) is part of this framework and works in conjunction with other FAR parts to create a comprehensive regulatory structure. Contracting officers must comply with all applicable parts when executing procurement actions, and contractors must understand the requirements that flow from these regulations into their contracts.

The requirements in Part 45 may be implemented through specific contract clauses prescribed in FAR Part 52. When a clause references Part 45, the substantive requirements originate here, while Part 52 provides the actual clause language incorporated into contracts and solicitations.

Subparts

FAR Part 45 is divided into 6 subparts, each addressing a specific aspect of government property.

• 45.1 — General
• 45.2 — Solicitation and Evaluation Procedures
• 45.3 — Authorizing the Use and Rental of Government Property
• 45.4 — Title to Government Property
• 45.5 — Support Government Property Administration
• 45.6 — Reporting, Reutilization, and Disposal

Reading FAR Part 45

The full text of FAR Part 45 is available on the Electronic Code of Federal Regulations (eCFR). The eCFR provides the most current version of the regulation, including any recent amendments published through Federal Acquisition Circulars (FACs). For historical versions, use the eCFR's point-in-time search feature.

• What does FAR Part 45 cover?

  FAR Part 45 covers government property within the federal acquisition process. FAR Part 45 addresses government property in the possession of contractors, including government-furnished property (GFP) and contractor-acquired property (CAP). It establishes policies for providing government property, contractor use and management responsibilities, property records and reporting requirements, and disposition of property. Subpart 45.1 covers general policies, and Subpart 45.6 addresses reporting, reutilization, and disposal.

• Who must comply with FAR Part 45?

  FAR Part 45 applies to all executive branch agencies conducting acquisitions, unless a specific exemption exists. Contractors must comply with the requirements that are incorporated into their contracts through prescribed clauses from FAR Part 52. Agency-specific supplements (DFARS, GSAM, etc.) may add additional requirements beyond the base FAR.

• Where can I read the full text of FAR Part 45?

  The full text is available on the Electronic Code of Federal Regulations (eCFR). You can also access it through acquisition.gov, which is maintained by the General Services Administration. Both sources reflect the most current version of the regulation.

• How does FAR Part 45 relate to contract clauses?

  FAR Part 45 establishes the substantive policies and procedures. The actual clause language that gets incorporated into contracts is found in FAR Part 52. Each clause in Part 52 includes a "prescription" that references the relevant policy part, creating a direct link between the requirement and its implementation in the contract.