FAR and DFARS › FAR Part 45: Government Property › Subpart 45.1
FAR 45.103 General.
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 tells agencies to encourage contractors to use voluntary consensus standards and industry best practices for managing Government property. It also directs agencies to maximize the use of Government property already in contractors' possession and to avoid giving contractors a competitive advantage through Government property. Contractors may not need to set up separate property management systems if their existing procedures for contractor-owned property are adequate.
Applies to: Agencies and contractors managing Government property
What it requires
- Use Government property already in your possession to the maximum extent practical in performing Government contracts.
- Justify retaining Government property not needed for contract performance and declare it as excess when no longer needed.
Key terms: voluntary consensus standards · industry-leading practices and standards · Government property · contractor inventory · property management systems
Written by AI from this section's text. A guide, not legal advice: the text below rules.
The text
(a) Agencies shall—
(1) Allow and encourage contractors to use voluntary consensus standards (see FAR 11.101(b)) and industry-leading practices and standards to manage Government property in their possession;
(2) Eliminate to the maximum practical extent any competitive advantage a prospective contractor may have by using Government property;
(3) Ensure maximum practical reutilization of contractor inventory for government purposes;
(4) Require contractors to use Government property already in their possession to the maximum extent practical in performing Government contracts;
(5) Charge appropriate rentals when the property is authorized for use on other than a rent-free basis; and
(6) Require contractors to justify retaining Government property not needed for contract performance and to declare property as excess when no longer needed for contract performance.
(b) Agencies will not generally require contractors to establish property management systems that are separate from a contractor's established procedures, practices, and systems used to account for and manage contractor-owned property.
Sections it refers to
- 11.101 Order of precedence for requirements documents.
← 45.102 Policy. · 45.104 Responsibility and liability for Government property. →
Source: eCFR, 48 CFR chapters 1 and 2 (GPO GovInfo bulk data) ↗. Plain words for the terms: glossary.