FAR and DFARS › FAR Part 45: Government Property › Subpart 45.3
FAR 45.301 Use and rental.
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 explains when contractors can use Government property rent-free or must pay rent. It matters because it tells you when you can use Government property without charge and when you need to pay or get approval.
Applies to: Contractors using Government property
What it requires
- Obtain fair rental or other adequate consideration if you request to use Government property after contract award under a fixed-price contract.
- Get prior approval from the Head of the Contracting Activity if non-Government use is expected to exceed 25 percent of the total use of Government and commercial work performed.
Key terms: Government property · rent-free · rental charges · cognizant contracting officer · non-Government use
Written by AI from this section's text. A guide, not legal advice: the text below rules.
The text
This subpart prescribes policies and procedures for contractor use and rental of Government property.
(a) Government property shall normally be provided on a rent-free basis in performance of the contract under which it is accountable or otherwise authorized.
(b) Rental charges, to the extent authorized do not apply to Government property that is left in place or installed on contractor-owned property for mobilization or future Government production purposes; however, rental charges shall apply to that portion of property or its capacity used for non-government commercial purposes or otherwise authorized for use.
(c) The contracting officer cognizant of the Government property may authorize the rent-free use of property in the possession of nonprofit organizations when used for research, development, or educational work and—
(1) The use of the property is in the national interest;
(2) The property will not be used for the direct benefit of a profit-making organization; and
(3) The Government receives some direct benefit, such as rights to use the results of the work without charge, from its use.
(d) In exchange for consideration as determined by the cognizant contracting officer(s), the contractor may use Government property under fixed-price contracts other than the contract to which it is accountable. When, after contract award, a contractor requests the use of Government property, the contracting officer shall obtain a fair rental or other adequate consideration if use is authorized.
(e) The cognizant contracting officer(s) may authorize the use of Government property on a rent-free basis on a cost type Government contract other than the contract to which it is accountable.
(f) In exchange for consideration as determined by the cognizant contracting officer, the contractor may use Government property for commercial use. Prior approval of the Head of the Contracting Activity is required where non-Government use is expected to exceed 25 percent of the total use of Government and commercial work performed.
← 45.202 Evaluation procedures. · 45.302 Contracts with foreign governments or international organizations. →
Source: eCFR, 48 CFR chapters 1 and 2 (GPO GovInfo bulk data) ↗. Plain words for the terms: glossary.