FAR Alert: FAC 2005-17 Issued |
The Federal Acquisition Regulatory (FAR) Council has issued Federal Acquisition Circular (FAC) 2005-17. The document, which consists of one rule, rewrites FAR Part 45, Government Property. The FAR amendment was intended to simplify the rules for managing government property in the possession of contractors. Toward that end, the number of FAR clauses related to government property has been reduced from 19 clauses to just three. The new policy establishes that contractors are generally required to provide all property necessary to perform government contracts. With the exception of property provided to contractors for repair or overhaul, contracting officers may only provide property to contractors when it is clearly demonstrated (1) to be in the government’s best interest; (2) that the overall benefit to the acquisition significantly outweighs the increased cost of administration, including ultimate property disposal; (3) that providing the property does not substantially increase the government’s risk; and (4) that government requirements cannot otherwise be met. The contractor’s inability or unwillingness to supply its own resources is not sufficient reason for the government to furnish or acquire property. Effective date: June 14, 2007 FAR Parts Amended: 1, 2, 4, 7, 14, 15, 16, 17, 18, 19, 22, 28, 31, 32, 35, 37, 41, 42, 43, 44, 45, 46, 49, 51, 52, and 53. Final rule. Contact: Jeritta Parnell at (202) 501-4082. 72 Federal Register 27364, May 15, 2007.
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