1. THE CLASSIFICATION OF GOVERNMENT PROPERTY

2. 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)

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

4. 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.

5. 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.

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

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

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

9. ORIGINS OF GOVERNMENT PROPERTY CLASSES OF GOVERNMENT PROPERTY
FURNISHED PROPERTY
CONTRACTOR
ACQUIRED PROPERTY
CLASSES OF GOVERNMENT PROPERTY
MATERIAL
(a)
SPECIAL
TEST
EQUIPMENT
2.101
SPECIAL
TOOLING
2.101
EQUIPMENT
(a)
REAL
PROPERTY
(a)

10. MATERIAL (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.

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

12. Some Examples of MATERIAL

15. Copper
Tubing
BAR STOCK
SHEET METAL
PVC

16. 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.

17. 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

18. Some Examples of SPECIAL TOOLING

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

20. 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.

21. 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.

22. Some Examples of SPECIAL TEST EQUIPMENT

23. REAL PROPERTY
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.

24. Some Examples of REAL PROPERTY

25. EQUIPMENT
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.

26. Examples of EQUIPMENT

27. SOME MORE EXAMPLES

28. 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.

29. Some Examples of SENSITIVE PROPERTY

30. Some Examples of SENSITIVE PROPERTY

31. 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!