EP 1110-1-18
24 Apr 00
3-11. Property Management. As a general policy, contractors are normally required to furnish all
equipment and materials necessary to perform their contract tasks. However, when deemed to be
in the best interest of the government, equipment/materials (e.g., vehicles, engineering controls,
explosives, magnetometers, etc.) may be provided to the contractor by the government. If
Government Furnished Property (GFP) is not provided but the contract requires specialized
equipment or materials that are not included in the contractor's overhead rate, procurement or
lease may be authorized. In all cases, property management will comply with the FAR, other
applicable DOD and DA policies, and with the internal policies of the district or OE Design
Center, as appropriate.
a. GFP Provided to Contractor. If GFP is provided to the contractor, the OE project team
must be familiar with the FAR requirements concerning management of government property
under the control of contractors. The district or OE Design Center property management
personnel should be contacted prior to and during the response action to clarify and help resolve
issues concerning GFP or property management.
b. Acquisition Planning. The decision to provide GFP to the contractor is normally made
when the acquisition is being planned. A recommendation concerning GFP will be made to the
CO/COR by a team consisting of the PM, project engineer, contract specialist, cost engineer, and
property management specialist. If the government provides GFP, the contract will include
appropriate clauses and the GFP will be identified in the contract's SOW. For all projects which
exceed three months in field duration, the OE project team will either arrange to provide General
Services Administration vehicles for the contractor's use or will document and explain the
decision to have the contractor use commercial vehicles. Even in those cases where GFP is
provided, it is likely that additional or other types of equipment will be required to complete the
contract. Additional equipment may be purchased or leased by the contractor, if agreed upon at
the time of contract award, or if subsequently requested in writing and approved by the CO/COR.
c. Acquisitions. Acquisitions must be carefully managed. The PM, with assistance from
the team members, should ensure that the contractor submits the required number of quotes and
the appropriate analyses for new acquisitions. Normally this means three quotes for each item
and a comparison of rental versus purchase cost for each item. The team's cost engineer should
review the contractor's Property Management Plan and each acquisition request from the
contractor to determine whether the proposed costs are in line with the costs estimated in the
IGE. The cost engineer and property management specialist should advise the PM and CO/COR
whether the acquisition should be approved. It is important that the property management
specialist be consulted and provided with all correspondence when acquisitions are approved,
since the procured items become GFP as specified by the contract. The PM and OE project team
should become familiar with the specific contract language which will specify the requirements
for disposition of GFP not consumed during the contract.
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