FAR Parts 45 and 52, 2007. Property. Parts 45 & 52. Eric Saindon Deputy Director for Government Property Defense Contract Management Agency [email protected] Where we are Today. Final Rule Published May 2007 No “philosophical” disputes -- final language consistent with earlier drafts.
Philosophy of Regulation Writing
52.245-2, Government Property (Fixed-Price Contracts)
52.245-5,Government Property (Cost-Reimbursement, Time- and-Material, or Labor-Hour Contracts)
52.245-1, Government Property
52.245-2, Government Property (Installation Operations for Services)
45.303 -- Providing Material
45.304 -- Providing Motor Vehicles
45.306 -- Providing Special Tooling
45.307 -- Providing Special Test Equipment
45.308 -- Providing Government Production and Research Property
45.310 -- Providing Agency Peculiar Property (“As Is”)
NEW 45.102 -- Contracting officers shall provide property to contractors only when it is clearly demonstrated:
- To be in the Govt’s best interest;
- That the overall benefit to the procurement significantly outweighs the increased cost of administration, including ultimate property disposal;
- That providing the property does not substantially increase the assumption of risk; and
- That Govt requirements cannot otherwise be met.
Example of How We Reengineered the Language
“Contractors shall develop property
management plans and systems, at
the contract, program, site or entity
level that reflect their efforts to obtain
In accordance with Voluntary Consensus Standards, or in the
absence of such standards, Industry leading practices and standards
“Common and repeated use of rules, conditions, guidelines or characteristics for products or related processes and production methods, and related management systems” OMB Circular A-119
Standards used must be adequate for contract performance as determined by the Property Administrator
What are They?
The Federal Acquisition Regulations (FAR) Part 11 describes agency needs and addresses the use of Voluntary Consensus Standards in writing the Government's requirements. OMB Circular A-119 and FAR mandate the use of voluntary consensus standards in lieu of Government-unique standards. The use of existing standards provides substantial cost benefits for the Government.
The National Technology Transfer and Advancement Act of 1995 (Public Law 104-119), OMB Circular A-199, and FAR Part 12 all mandate the use of Voluntary Consensus Standards in lieu of Government-unique standards
“The Contractor shall have a system to manage (control, use, preserve, protect, repair and maintain) Government property in its possession.
The system shall be adequate to satisfy the requirements of this clause.
The contractor shall initiate and maintain the processes, systems, records, and methodologies necessary for effective control of Government property, consistent with voluntary consensus standards and/or industry-leading practices and standards for Government property management.”
Industry Leading Practice (ILP) will be used
“Contractors shall develop property management plans and systems, at the contract, program, site or entity level that reflect their efforts to obtain best value”
See ASTM Standard E-2219
Performed by DoD
See ASTM Standard
System Corrected, etc.
Based on Voluntary Consensus Standards/Industry Leading Practices for Property Management
“The contractor shall establish and maintain procedures necessary to assess its property management system effectiveness, and shall perform periodic internal reviews and audits. The findings and/or results of such reviews and audits shall be provided to the Property Administrator, upon request.”