THE CLASSIFICATION OF GOVERNMENT PROPERTY

TOPICAL OVERVIEW Property Government Property Government Furnished Property Contractor Acquired Property FEDERAL ACQUISITION REGULATION (FAR) Classes/Classifications of Government Property ( For Government Property In the Possession of Contractors)

PROPERTY Property means all tangible property, both real and personal.

PROPERTY “Personal property” means property of any kind or interest in it except real property, records of the Federal Government, and naval vessels of the following categories: Battleships; Cruisers; Aircraft carriers; Destroyers; and Submarines.

Note that condition that it must be TANGIBLE! PROPERTY Note that condition that it must be TANGIBLE! This is NOT meant to change the LEGAL definition – rather it is to define the application of this term in regard to Government Property is possession of contractors. That we, under FAR 45, are ONLY concerned with TANGIBLE PROPERTY. We do not require contractors to MANAGE INTANGIBLE assets. There are OTHER clauses for that purpose.

ORIGINS OF GOVERNMENT PROPERTY FAR 52 ORIGINS OF GOVERNMENT PROPERTY FAR 52.245-1(a) Definitions GOVERNMENT PROPERTY: ALL PROPERTY OWNED OR LEASED BY THE GOVERNMENT. GP includes both Government-furnished property and contractor-acquired property.

ORIGINS OF GOVERNMENT PROPERTY CONTRACTOR ACQUIRED PROPERTY 52.245-1 (a) PROPERTY ACQUIRED, FABRICATED, OR OTHERWISE PROVIDED BY THE CONTRACTOR FOR PERFORMING A CONTRACT AND TO WHICH THE GOVERNMENT HAS TITLE GOVERNMENT FURNISHED PROPERTY 52.245-1(a) PROPERTY IN THE POSSESSION OF, OR DIRECTLY ACQUIRED BY, THE GOVERNMENT AND SUBSEQUENTLY FURNISHED TO THE CONTRACTOR FOR PERFORMANCE OF A CONTRACT

CLASSIFICATIONS GOVERNMENT PROPERTY MATERIAL – 52.245-1(a) SPECIAL TOOLING 2.101 SPECIAL TEST EQUIPMENT 2.101 REAL PROPERTY – 52.245-1(a) EQUIPMENT – 52.245-1(a) NOTE: EACH CLASS OF PROPERTY HAS ITS OWN QUALIFIERS AND DESCRIPTORS

ORIGINS OF GOVERNMENT PROPERTY CLASSES OF GOVERNMENT PROPERTY FURNISHED PROPERTY CONTRACTOR ACQUIRED PROPERTY CLASSES OF GOVERNMENT PROPERTY MATERIAL 52.245-1(a) SPECIAL TEST EQUIPMENT 2.101 SPECIAL TOOLING 2.101 EQUIPMENT 52.245-1(a) REAL PROPERTY 52.245-1(a)

MATERIAL 52.245-1(a) Material means property that may be consumed or expended during the performance of a contract, component parts of a higher assembly or items that lose their individual identity through incorporation into an end-item. Material does NOT include equipment, special tooling, special test equipment.

MATERIAL 52.245-1(a) QUALIFIERS DESCRIPTORS INCORPORATED CONSUMED OR EXPENDED DESCRIPTORS PARTS ASSEMBLIES COMPONENTS RAW AND PROCESSED MATERIALS LIQUIDS

Some Examples of MATERIAL

Copper Tubing BAR STOCK SHEET METAL PVC

SPECIAL TOOLING 2.101 Special Tooling means jigs, dies, fixtures, molds, patterns, taps, gauges, all components of these items and replacement of these items, which are of such a specialized nature that without substantial modification or alteration their use is limited to the development or production of particular supplies or parts thereof or to the performance of particular supplies or to the performance of particular services. Special tooling does not include material, special test equipment, real property (except foundations and similar improvements necessary for installing special tooling), equipment, machine tools, or similar capital items.

SPECIAL TOOLING 2.101 QUALIFIERS SPECIALIZED NATURE DESCRIPTORS WITHOUT SUBSTANTIAL MODIFICATION USE IS LIMITED TO THE DEVELOPMENT OR PRODUCTION OF PARTICULAR SUPPLIES OR PARTS OR SERVICES DESCRIPTORS JIGS, DIES, FIXTURES, MOLDS, PATTERNS, TAPS, GAUGES, OTHER EQUIPMENT AND MANUFACTURING AIDS, ALL COMPONENTS OF THESE ITEMS

Some Examples of SPECIAL TOOLING

Some Examples of SPECIAL TOOLING Shipbuilding Fixtures Go N0-GO Gages Holding Fixtures

SPECIAL TEST EQUIPMENT FAR 2.101 STE means either single or multipurpose integrated test units engineered, designed, fabricated or modified to accomplish special purpose testing in performing a contract. It consists of items or assemblies of equipment including standard or general purpose items or components that are interconnected and interdependent so as to become a new functional entity for special testing purposes. STE does NOT include material, ST, real property (Except foundations and similar improvements necessary for installing STE), and equipment items used for general testing purposes or property that with relatively minor expense can be made suitable for general purpose use.

SPECIAL TEST EQUIPMENT FAR 2.101 DESCRIPTORS single or multipurpose integrated test units items or assemblies of equipment standard or general purpose items QUALIFIERS engineered, designed, fabricated or modified to accomplish special purpose testing become a new functional entity STE does NOT include…property that with relatively minor expense can be made suitable for general purpose use.

Some Examples of SPECIAL TEST EQUIPMENT

REAL PROPERTY 45.101 Real property means land, land rights, buildings, structures, utility systems, steam-generation systems, and equipment attached to and made part of buildings and structures (such as heating systems). As such, land rights are considered real property. It does not include foundations and other work necessary for installing special tooling, special test equipment, or equipment.

Some Examples of REAL PROPERTY

EQUIPMENT 45.101 means a tangible article of personal property that is complete in-and-of itself, durable, nonexpendable, and needed for the performance of a contract. Equipment generally has an expected service life of one year or more, and does not ordinarily lose its identity or become a component part of another article when put into use.

Examples of EQUIPMENT

SOME MORE EXAMPLES

OTHER CLASSIFICATIONS OF GOVERNMENT PROPERTY "Sensitive property" means property potentially dangerous to the public safety or security if stolen, lost, or misplaced, or that shall be subject to exceptional physical security, protection, control, and accountability. Examples include weapons, ammunition, explosives, controlled substances, radioactive materials, hazardous materials or wastes, or precious metals.

Some Examples of SENSITIVE PROPERTY

Some Examples of SENSITIVE PROPERTY

WHY CLASSIFY? PROPER CLASSIFICATION IMPACTS THE FOLLOWING ACTIONS/REQUIREMENTS: ACQUISITION, i.e., the ALLOWABILITY of an item RECORDS STORAGE MAINTENANCE PHYSICAL INVENTORIES CONSUMPTION UTILIZATION DISPOSITION PLUS MORE! Impacts the entire property life cycle!