DFARS Part 245: Government Property

In plain English

DFARS Part 245 implements the FAR Government Property rules for DoD contracts. It covers how DoD furnishes, tracks, and disposes of Government property, and what contractors must do to manage it. This matters because it affects liability, property management system requirements, and contract clauses you must follow.

Key rules

• For mapping, charting, and geodesy property, you cannot copy or reproduce it except as necessary for contract performance, and after performance you must destroy or return it as directed by the contracting officer. (245.102)
• When performance requires Government-furnished property, the contracting officer must include a GFP attachment in the solicitation and award. (245.103-72)
• You are not liable for loss of Government property under negotiated fixed-price contracts awarded without submission of certified cost or pricing data. (245.104)
• The contracting officer, with the property administrator, will determine if your property management system is acceptable and require you to fix any weaknesses. (245.105)
• Use the clause at FAR 52.245-1, Government Property, for all purchase orders for repair, maintenance, overhaul, or modification of Government property, regardless of the unit acquisition cost. (245.107)
• Use the clause at 252.245-7003, Contractor Property Management System Administration, in solicitations and contracts that contain FAR 52.245-1. (245.107)
• You may use Government property on work for foreign governments or international organizations only with written approval from the contracting officer, and use charges may apply. (245.302)
• All storage contracts or agreements at the Government's expense must be separately priced and include all storage costs. (245.570)

Who does what

In practice

• When you bid on a DoD contract that will involve Government property, check for a GFP attachment in the solicitation to know what property you will receive and what responsibilities you will have.
• If your contract includes the clause at FAR 52.245-1, you must have a property management system that meets the criteria in DFARS 252.245-7003, and the contracting officer will evaluate it.
• For repair, maintenance, overhaul, or modification of Government property, the clause at FAR 52.245-1 applies regardless of the unit acquisition cost, so even low-value items are covered.
• If you hold Government property under a sustainment contract, you may have reporting requirements under DoD Manual 4140.01, Volume 6, as referenced in PGI 245.103-73.

Common pitfalls

• Assuming you are liable for loss of Government property under all fixed-price contracts: DFARS 245.104 states you are not liable under negotiated fixed-price contracts awarded without certified cost or pricing data.
• Copying or reproducing mapping, charting, and geodesy property for purposes other than contract performance, which is prohibited by DFARS 245.102.
• Using Government property on work for a foreign government or international organization without written approval from the contracting officer, as required by DFARS 245.302.
• Failing to include a GFP attachment in a solicitation or award when Government-furnished property will be used, as required by DFARS 245.103-72.

Written by AI from this part's codified text (2026-10-04); cited sections are checked against the part. A guide, not legal advice: the regulation text, the solicitation and your contract rule.