FAR and DFARS › FAR Part 45: Government Property › Subpart 45.4
FAR 45.402 Title to contractor-acquired property.
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 the Government takes title to property a contractor acquires or fabricates for a contract. Under fixed-price contracts, the contractor generally keeps title unless the contract has financing provisions or other title-passage requirements, or the property is a deliverable end item. Under cost-type and time-and-material contracts, the Government acquires title to property the contractor can be reimbursed for.
Applies to: Contractors acquiring or fabricating property for Government contracts
What it requires
- If a deliverable item is retained by the contractor for use after Government inspection and acceptance, it must be made accountable to the contract through a contract modification listing it as Government-furnished property.
Key terms: title · contractor-acquired property · fixed-price type contracts · cost type and time-and-material contracts · Government-furnished property
Written by AI from this section's text. A guide, not legal advice: the text below rules.
The text
(a) Title vests in the Government for all property acquired or fabricated by the contractor in accordance with the financing provisions or other specific requirements for passage of title in the contract. Under fixed-price type contracts, in the absence of financing provisions or other specific requirements for passage of title in the contract, the contractor retains title to all property acquired by the contractor for use on the contract, except for property identified as a deliverable end item. If a deliverable item is to be retained by the contractor for use after inspection and acceptance by the Government, it shall be made accountable to the contract through a contract modification listing the item as Government-furnished property.
(b) Under cost type and time-and-material contracts, the Government acquires title to all property to which the contractor is entitled to reimbursement, in accordance with paragraph (e)(3) of clause 52.245-1.
Sections it refers to
- 52.245-1 Government Property.
← 45.401 Title to Government-furnished property. · 45.501 Prime contractor alternate locations. →
Source: eCFR, 48 CFR chapters 1 and 2 (GPO GovInfo bulk data) ↗. Plain words for the terms: glossary.