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“Contractor-Acquired Property”
What Contracting Officers Need to
Know
Presented By:
Tom Ruckdaschel
Deputy Director, Contracts
1 June 2016
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Unclassified//For Official Use Only
Three (3) Interrelated Areas
• Clauses: FAR and DFARS
• Use of GFP Attachments
• Proper delivery
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But first…what we do
• DCMA defined mission
• Contract administration- per DoD Directive 5105.64, “Defense
Contract Management Agency” (January 2013)
• FAR part 42/DFARS part 242
• Perform contract administration (DoD Directive
5105.64)
• Ensure contractors meet FAR/DFARS requirements and
contract terms and conditions
• Determine acceptability of contractor business systems;
approve or disapprove the system
• Pursue correction of significant deficiencies
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Contractor Acquired
Property
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Background
• Government “contract” property (reference: DoDI
4161.02)
• Furnished to contractors by the Government (“GFP”), or
• Acquired by contractors under cost-reimbursement contracts
(Contractor Acquired Property or “CAP”)
• CAP is defined at FAR 45.101
• Property acquired by a contractor—to which the contractor is
entitled to be reimbursed (as a direct item of cost)
• CAP is closely tied to FAR 52.216-7, “Allowable Cost and
Payment” -- exists only within a cost reimbursable
environment
• Issue: “rolling” CAP from contract without benefit of a
delivery event
• Makes the property invisible to DoD balance Sheets
• Ties to DoD’s stated Material Weakness on GFP
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Contractor Acquired Property
• Passage of title (to the Government) occurs
• Vendor’s (the contractor’s vendor) delivery of property
• Issuance of the property for use in contract performance, e.g.,
material from the contractor’s own stock room
• Commencement (processing of property for use in contract
performance), or
• Reimbursement by the Government
• Oversight and surveillance: Business systems reviews
such as:
• Property
• Accounting (“allowability”)
• Material, Management and Accounting Systems
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CAP Business Rules
• Contractor acquired property (CAP) not anticipated
at time of contract award, or not otherwise
specified for delivery shall be delivered on a line
item (PGI 245.402-71)
• Value shall be at contractor fully burdened cost
• Normal or provisional burdens to direct costs,
including appropriate amount or fee (consistent with
DFARS 211.274-3, “Policy for Valuation”)
• Like any other deliverable
• Once delivered, CAP is considered GFP (undergoes a
“change of state”). As GFP, the property can now
be transferred to another contract (SF 30 only!)
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The Clauses
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The Clauses
• Federal Acquisition Regulation (FAR) 52.245-1
• Required in all cost Reimbursement contracts and
• All contracts involving Government furnished property
• Major areas
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Authority to use for contract performance
Internal controls
Self Assessments
Title
Liability
Property Disposition
Government warranty for suitability of use (GFP)
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The Clauses (cont.)
• FAR 52.245-1 and these DFARS clauses go together
• Defense Federal Acquisition Regulation Supplement
(DFARS) clauses
• 252.211-7007 (Reporting Government Furnished Property)
• 252.245-7001 (Tagging, Labeling and Marking of GFP)
• 252.245-7002 (Reporting Loss of Government Property)
• 252.245-7003 (Contractor Property Management…)
• 252.245-7004 (Reporting, Reutilization, and Disposal)
• Procedure, Guidance and Information (PGI)
• PGI 245.103-70 (why is GP being furnished?)
• PGI 245.103-71 (rules and tools of transferring property from
one contract to another)
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DoD Scorecarding
• DPAP memorandum dated Sept 19, 2014
establishes GFP clause compliance scorecard
• Compliance is calculated quarterly
• Memo can be found here:
http://www.acq.osd.mil/dpap/policy/policyvault/U
SA005553-14-DPAP.pdf
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Standard GFP
Attachment
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Background
• FAR 45.201, “Solicitation”: “The Contracting Officer
shall insert a listing of the Government property to be
offered…”
• The “listing” is standardized and operationalized in PGI
245.103-72
• Identifies:
• Type and quantity of GFP
• Serialized items; Unit Acquisition Cost
• “As Is” property
• Format: “readable PDF”
• Can be manually entered (small # of items)
• Or created from Excel conversion (large # of items)
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Benefits
• Consistency
• Promotes proper contract structure
• Can be repurposed as data; and so supports an end-toend process
• Identifies:
• Serially vs. non serially managed property (which ties to
DFARS GFP reporting clause 252.211-7007)
• Items subject to Marking
• Documents what the parties agreed to, i.e., “The
Government will furnish…for contract performance”
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Requirement for all DoD
contract writing systems
(OSD memo April 11, 2012)
Additional Information
DFARS Procedures, Guidance and Information (PGI”):
PGI 245.1 (General Information on GFP)
PGI 245.103-72 (Guidance on GFP)
PGI 245.2 (Solicitation and Evaluation Procedures)
PGI 245.201-71 (GFP Attachments)
PGI 242.402-71 (Title)
Companion to the DFARS
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QUESTIONS?
http://dodprocurementtoolbox.com/