# AFARS PART 5145

Subpart 5145.1 – General

- 5145.190 -- Leasing personal property.

Subpart 5145.3 -- Providing Government Property to Contractors

- 5145.300 -- Scope of subpart.
- 5145.391 -- Documentation of Government property in solicitations and contracts.
- 5145.392 -- Maintenance of records of contracts bearing Government property.

Subpart 5145.4 -- Contractor Use and Rental of Government Property

- 5145.404 -- Rent-free use.
- 5145.407 -- Non-Government use of plant equipment.

Subpart 5145.5 -- Management of Government Property in the Possession of Contractors

- 5145.503 -- Relief from responsibility.
- 5145.504 -- Contractor's liability.
- 5145.505 -- Records and reports of Government property.

- 5145.505-14 -- Reports of Government property.

- 5145.506 -- Identification.
- 5145.508 -- Physical inventories.

- 5145.508-1 -- Inventories upon termination or completion.

- 5145.511 -- Audit of property control system.

Subpart 5145.6 -- Reporting, Redistribution, and Disposal of Contractor Inventory

- 5145.602 -- Reutilization of Government property.
- 5145.612 -- Removal and storage.

- 5145.612-3 -- Special storage at Government's expense.

AFARS -- Part 5145
Government Property

Subpart 5145.1 – General

5145.190 -- Leasing personal property.

See Army Regulation (AR) 700-131.

Subpart 5145.3 -- Providing Government Property to Contractors

5145.300 -- Scope of subpart.

Coordinate determination and findings (D&F) for facilities being provided in connection with installation support functions with the installation commander or District Engineer, as appropriate.

5145.391 -- Documentation of Government property in solicitations and contracts.

(a) All solicitations offering Government property for use by contractors and all contracts under which the Government is to furnish property to contractors must contain specific identification of all Government property to be offered or furnished, to include nomenclature, quantity, acquisition value and, where applicable, model number, serial number and year of manufacture.

(b) Contracting officers must ensure that changes to Government property made over time are reflected by modifications to the contract.

5145.392 -- Maintenance of records of contracts bearing Government property.

Each contracting activity must maintain a record of all open contracts that provide for Government property to be furnished to or acquired by the contractor.

Subpart 5145.4 -- Contractor Use and Rental of Government Property

5145.404 -- Rent-free use.

The contracting officer must document the contract file to show the basis for rent-free use of Government property.

5145.407 -- Non-Government use of plant equipment.

(a) (i) Approval authority is delegated only to the Head of the Contracting Activity (HCA). Each request for approval must include the following:

(ii) How the Government’s interest is served. Identify and justify use of one or more of the criteria in FAR 45.407(b). Support with quantitative data.

(iii) How the percentage of non-Government use is computed, to include the following (account for 100 percent of available time):

(A) Total available time.
(B) Government-use time.
(C) Idle time.

(iv) When a rental charge is proposed, the amount of the charge and how it is computed. If charge is to be different from prescribed rates, provide justification.

(v) When rent-free use is proposed, both tangible and intangible consideration passing to the Government and the contractor.

(vi) Explain whether or not the contractor will gain a competitive advantage if request is approved.

(vii) The extent to which the contractor will be harmed if the request is denied.

(viii) How the Industrial Preparedness Program will be adversely affected if the request is denied.

Subpart 5145.5 -- Management of Government Property in the Possession of Contractors

5145.503 -- Relief from responsibility.

(a) (5) The determination by the contracting officer serves the same purpose as a Report of Survey (see AR 735-5) in a Military Property Account. The contracting officer must document the contract file to show the circumstances surrounding the loss or damage and the property administrator’s and contracting officer’s actions to investigate the case. Cite the specific contract terms on which the determination is based, and include all the information required to fully support the determination.

5145.504 -- Contractor's liability.

When the contracting officer determines that the Government is due compensation, he/she must issue a written request (demand) to the contractor; with a copies to the disbursing officer and property administrator.

5145.505 -- Records and reports of Government property.

(a) When the contractor’s property control records are not used as the Government’s official property records, the property administrator must maintain the records and reports specified in FAR 45.505, DFARS 245.505, and DoD 4161-2-M that are necessary for effective property control, to include DD Form 1662.

5145.505-14 -- Reports of Government property.

(S-90)The web-based Contract Property Management System (CPMS) will be used for input of all data on Government property in the possession of contractors.

(a) Contracting activities must use the Annual Summary Report of DoD Property in the Custody of Contractors furnished by the IEA during the second quarter of each fiscal year to actively manage the Government property they have entrusted to contractors. As a minimum, contracting activities must --

(1) Compare the summary report with records kept in accordance with 5145.392 and any other available records to detect --

(i) Contracts with Government property for which no DD Form 1662 has been submitted;

(ii) Contracts reporting Government property via DD Form 1662 but not in the records required by 5145.392; and

(iii) Contracts that are completed.

(2) If contracts are missing from the annual summary report, contracting activities shall, within 60 days of receipt of the summary, send written inquiry to the cognizant Administrative Contracting Officer (ACO) at the Defense Contract Management Agency (DCMA) regarding nonsubmission of the DD Form 1662 and/or status of contract completion and availability of Government property for reutilization, as appropriate.

5145.506 -- Identification.

(c) (3) The standard Departmental registration system numbering is applicable to the following equipment:

(A) Motor vehicles (AR 58-1).
(B) Materials handling equipment (AR 708-1).
(C) Railroad equipment (AR 56-3).

5145.508 -- Physical inventories.

5145.508-1 -- Inventories upon termination or completion.

(b) Exception.

(A) The property administrator must request the contractor to furnish the following at least 120 days prior to contract completion:

(1) A listing of all Government property required to support contractual follow-on requirements or other known requirements, including spares and mobilization readiness requirements. This listing shall identify the category, quantity, and acquisition cost of such property, i.e., IPE, 0PE, ST, STE, agency-peculiar property, and material.

(2) Justification for retention of any Government property not currently in use (see FAR 45.102(f)).

(B) Upon receipt of the contractor’s submission, the property administrator must:

(1) Review and verify the contractor’s stated Government property requirements, with assistance from other technical specialists when required.

(2) Forward a copy of the contractor’s follow-on contract requirements list and retention justification statement, together with findings and recommendation, to the contracting officer.

(C) Final decisions with respect to transfer of Government property to follow-on contracts shall be made by the contracting officer within 90 days after receipt of the contractor’s list and justification statement. If transfer approval or other disposition instructions have not been received by the end of the 90-day period, the property administrator shall issue a follow-up which states:

“Your failure to respond within 30 calendar days of the date of this follow-up inquiry will be interpreted to mean that the Government property in question should be disposed of in accordance with FAR 45.603.”

(D) Authorized transfer of Government property to a follow-on contract shall be accomplished by contract modifications which delete the property from the completed contract and incorporate it in the follow-on contract. The modifications shall include a list of the type, quantity and acquisition cost of property being transferred.

(E) The property administrator and the ACO should be sure that all property being transferred has been provided by the Government or acquired by the contractor under an appropriate contract type, i.e., facilities normally should be provided or acquired under a facilities contract as required by FAR 45.302-2 and 45.302-3. If facilities were provided to or acquired by the contractor improperly, the ACO shall notify the Procuring Contracting Officer (PCO) and request the execution of a facilities contract or a contract modification incorporating the property in an existing facilities contract. When warranted, the ACO shall initiate action to recoup inappropriate fees or profits paid when facilities were provided to or acquired by the contractor improperly.

5145.511 -- Audit of property control system.

See AR 36-5 for information on audits. Requests for waivers and deviations to accounting procedures for Government property furnished to, or acquired by, contractors under the terms of their contract shall be submitted in accordance with AR 735-5.

Subpart 5145.6 -- Reporting, Redistribution, and Disposal of Contractor Inventory

5145.602 -- Reutilization of Government property.

Immediately upon notification of contract completion, contract termination, or Government property being reported as excess, the Contracting Officer must query the owner of the property for instructions regarding reutilization or disposal of the property.

[AFARS Revision #21, dated May 22, 2007]

5145.612 -- Removal and storage.

5145.612-3 -- Special storage at Government's expense.

(a) Determinations that contractor inventory may be stored at the Government’s expense for one year or more must be approved at a level higher than the contracting officer.