FAR and DFARS › FAR Part 45: Government Property › Subpart 45.1
FAR 45.105 Contractors' property management system compliance.
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 requires the government to review your property management system for compliance with contract requirements. If your system is found non-compliant, you must correct the deficiencies and may face consequences like losing the government's assumption of risk for loss of government property.
Applies to: Contractors with a property management system under a government contract.
What it requires
- Correct deficiencies in your property management system promptly when notified.
- Provide a corrective action plan with a schedule for correction when requested.
Key terms: property management system · property administrator · corrective action plan · loss of Government property · assumption of risk
Written by AI from this section's text. A guide, not legal advice: the text below rules.
The text
(a) The agency responsible for contract administration shall conduct an analysis of the contractor's property management policies, procedures, practices, and systems. This analysis shall be accomplished as frequently as conditions warrant, in accordance with agency procedures.
(b) The property administrator shall notify the contractor in writing when the contractor's property management system does not comply with contractual requirements, shall request prompt correction of deficiencies, and shall request from the contractor a corrective action plan, including a schedule for correction of the deficiencies. If the contractor does not correct the deficiencies in accordance with the schedule, the contracting officer shall notify the contractor, in writing, that failure to take the required corrective action(s) may result in—
(1) Revocation of the Government's assumption of risk for loss of Government property; and/or
(2) The exercise of other rights or remedies available to the contracting officer.
(c) If the contractor fails to take the required corrective action(s) in response to the notification provided by the contracting officer in accordance with paragraph (b) of this section, the contracting officer shall notify the contractor in writing of any Government decision to apply the remedies described in paragraphs (b)(1) and (b)(2) of this section.
(d) When the property administrator determines that a reported case of loss of Government property is a risk assumed by the Government, the property administrator shall notify the contractor in writing that it is granted relief of stewardship responsibility and liability in accordance with 52.245-1(f)(1)(vii). Where the property administrator determines that the risk of loss of Government property is not assumed by the Government, the property administrator shall request that the contracting officer hold the contractor responsible and liable.
Sections it refers to
- 52.245-1 Government Property.
← 45.104 Responsibility and liability for Government property. · 45.106 Transferring accountability. →
Source: eCFR, 48 CFR chapters 1 and 2 (GPO GovInfo bulk data) ↗. Plain words for the terms: glossary.