FAR and DFARS › FAR Part 45: Government Property › Subpart 45.1
FAR 45.102 Policy.
The codified text (eCFR, as of 2026-10-02). Under the Revolutionary FAR Overhaul ↗, agencies follow class deviations with new text for many parts while the formal rules go through the Federal Register: check the solicitation and your contract's clauses, which rule.
In plain English
This section states that contractors are normally expected to provide all property needed to perform government contracts. Contracting officers may provide government property only when specific conditions are met, such as it being in the Government's best interest and not substantially increasing risk. It also includes an exception for certain contracts and rules about installing government property on contractor-owned real property.
Applies to: Government contractors and contracting officers
What it requires
- Contractors must ordinarily furnish all property necessary to perform Government contracts.
- Contracting officers must ensure property is provided only when clearly demonstrated to meet the conditions in paragraph (b).
- Government property shall not be installed or constructed on contractor-owned real property in a way that becomes nonseverable, unless the head of the contracting activity determines it is necessary and in the Government's interest.
Key terms: Government property · contracting officers · nonseverable · head of the contracting activity · special tooling
Written by AI from this section's text. A guide, not legal advice: the text below rules.
The text
(a) Contractors are ordinarily required to furnish all property necessary to perform Government contracts.
(b) Contracting officers shall provide property to contractors only when it is clearly demonstrated—
(1) To be in the Government's best interest;
(2) That the overall benefit to the acquisition significantly outweighs the increased cost of administration, including ultimate property disposal;
(3) That providing the property does not substantially increase the Government's assumption of risk; and
(4) That Government requirements cannot otherwise be met.
(c) The contractor's inability or unwillingness to supply its own resources is not sufficient reason for the furnishing or acquisition of property.
(d) Exception. Property provided under contracts for repair, maintenance, overhaul, or modification is not subject to the requirements of paragraph (b) of this section.
(e) Government property, other than foundations and similar improvements necessary for installing special tooling, special test equipment, or equipment, shall not be installed or constructed on contractor-owned real property in such fashion as to become nonseverable, unless the head of the contracting activity determines that such installation or construction is necessary and in the Government's interest.
← 45.101 Definitions. · 45.103 General. →
Source: eCFR, 48 CFR chapters 1 and 2 (GPO GovInfo bulk data) ↗. Plain words for the terms: glossary.