Government Property Management Guide 2025: GFE, GFP & Contractor Requirements

Quick Answer: What is Government Property?

Government Property includes all property owned or leased by the government in contractor possession. This includes Government Furnished Equipment (GFE), Government Furnished Property (GFP), and Contractor Acquired Property (CAP). Contractors must maintain accountability, proper care, and records for all government property per FAR Part 45.

GFE

Equipment

GFP

Property

CAP

Contractor Acquired

FAR 45

Governing Rules

What is Government Property?

Government property is any property acquired by the government or that becomes government property under a contract. Contractors in possession of government property have significant accountability requirements.

Property Control Basics

→Government retains title to all government property
→Contractors are responsible for care and protection
→Property must be used only for authorized purposes
→Records must be maintained throughout possession

Types of Government Property

Government Furnished Property (GFP)

Property the government provides to contractor:

→Equipment needed for contract performance
→Materials for incorporation
→Special tooling and test equipment

Contractor Acquired Property (CAP)

Property contractor acquires for government:

→Purchased with contract funds
→Title vests in government
→Same accountability as GFP

Special Categories

→Special Tooling: Jigs, dies, fixtures for production
→Special Test Equipment: Testing devices for contract
→Material: Items consumed in performance

Contractor Requirements

Basic Responsibilities

☐Create and maintain property records

☐Conduct physical inventories

☐Report loss, damage, or destruction

☐Perform maintenance and repairs

☐Request disposition instructions when no longer needed

☐Return or dispose per government direction

Record Requirements

Property records must include:

→Item description and identification
→Quantity and unit of measure
→Acquisition date and cost
→Location and custodian
→Contract number

Property Management System

System Approval

Contractors with significant government property may require an approved property management system. DCMA or the contracting officer evaluates system adequacy.

✓Documented policies and procedures
✓Trained property personnel
✓Adequate controls and safeguards
✓Regular self-assessments

Property Disposal

Disposal Process

Identify Excess Property

Property no longer needed for contract performance

Request Disposition

Notify property administrator of excess property

Receive Instructions

Government directs return, transfer, or other disposition

Execute Disposition

Ship, transfer, or dispose per instructions

Common Issues

Inadequate Records

Missing or incomplete property records make accountability impossible. Maintain records from receipt through disposition.

Unreported Loss

Loss, damage, or destruction must be reported promptly. Delayed reporting can increase contractor liability and indicate system failures.

Unauthorized Use

Government property must only be used for authorized contract purposes. Personal or commercial use is prohibited.

Frequently Asked Questions

Am I liable for lost government property?

Contractor liability depends on cause. You may be liable for loss due to contractor negligence or willful misconduct. Government assumes risk for loss not due to contractor fault.

How often must I inventory government property?

Physical inventories are typically required annually for equipment. More frequent inventories may be required by contract or property system requirements.

Can I use government property on other contracts?

Only with government authorization. Cross-utilization requires approval from both the providing and receiving contracts property administrators.

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