[Code of Federal Regulations]
[Title 48, Volume 1]
[Revised as of October 1, 2002]
From the U.S. Government Printing Office via GPO Access
[CITE: 48CFR45]

[Page 822-823]
 
            TITLE 48--FEDERAL ACQUISITION REGULATIONS SYSTEM
 
                CHAPTER 1--FEDERAL ACQUISITION REGULATION
 
PART 45--GOVERNMENT PROPERTY--Table of Contents
 
  Subpart 45.5--Management of Government Property in the Possession of 
                               Contractors
 
45.502  Contractor responsibility.

    (a) The contractor is directly responsible and accountable for all 
Government property in accordance with the requirements of the contract. 
This includes Government property in the possession or control of a 
subcontractor. The contractor shall establish and maintain a system in 
accordance with this subpart to control, protect, preserve, and maintain 
all Government property. This property control system shall be in 
writing unless the property administrator determines that maintaining a 
written system is unnecessary. The system shall be reviewed and, if 
satisfactory, approved in writing by the property administrator.
    (b) The contractor shall maintain and make available the records 
required by this subpart and account for all Government property until 
relieved of that responsibility. The contractor shall furnish all 
necessary data to substantiate any request for relief from 
responsibility.
    (c)(1) The contractor shall be responsible for the control of 
Government property under this subpart 45.5 upon--
    (i) Delivery of Government-furnished property into its custody or 
control;
    (ii) Delivery, when property is purchased by the contractor and the 
contract calls for reimbursement by the Government (this requirement 
does not alter or modify contractual requirements relating to passage of 
title);
    (iii) Approval of its claim for reimbursement by the Government or 
upon issuance for use in contract performance, whichever is earlier, of 
property withdrawn from contractor-owned stores and charged directly to 
the contract; or
    (iv) Acceptance of title by the Government when title is acquired 
pursuant to specific contract clauses or as a result of change orders or 
contract termination.
    (2) Property to which the Government has acquired a lien or title 
solely as a result of advance, progress, or partial payments is not 
subject to the requirements of this subpart.
    (d) The contractor shall require subcontractors provided Government 
property under the prime contract to comply with the requirements of 
this subpart. Procedures for assuring subcontractor compliance shall be 
included in the contractor's property control system. Where the property 
administrator assigned to the contract has requested supporting property 
administration from another contract administration office, the 
contractor may accept the system approval of the supporting property 
administrator instead of performing duplicative actions to assure the 
subcontractor's compliance.
    (e) If the property administrator finds any portion of the 
contractor's property control system to be inadequate, the contractor 
must take any necessary corrective action before the system can be 
approved. If the contractor and property administrator cannot agree 
regarding the adequacy of control and corrective action, the matter 
shall be referred to the contracting officer.

[[Page 823]]

    (f) When Government property (excluding misdirected shipments, see 
45.505-12) is disclosed to be in the possession or control of the 
contractor but not provided under any contract, the contractor shall 
promptly (1) record such property according to the established property 
control procedure and (2) furnish to the property administrator all 
known circumstances and data pertaining to its receipt and a statement 
as to whether there is a need for its retention.
    (g) The contractor shall promptly report all Government property in 
excess of the amounts needed to complete full performance under the 
contracts providing it or authorizing its use.
    (h) When unrecorded Government property is found, both the cause of 
the discrepancy and actions taken or needed to prevent recurrence shall 
be determined and reported to the property administrator.

[48 FR 42392, Sept. 19, 1983, as amended at 51 FR 2666, Jan. 17, 1986]