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DFARS PGI 245_4



(Revised February 28, 2013)

PGI 245.4 – TITLE TO GOVERNMENT PROPERTY

PGI 245.402 Title to contractor-acquired property.

PGI 245.402-70 Policy.

(2) Contractor-acquired property items not anticipated at time of contract award, or not otherwise specified for delivery on an existing line item, shall be delivered to the Government on a contract line item. The value of that item shall be recorded at the original purchase cost or best estimate. Unless otherwise noted by the contractor at the time of delivery to the Government, the placed-in-service date shall be the date of acquisition or completed manufacture, if fabricated.

(3) Upon delivery and acceptance by the Government of contractor-acquired property items, and when retained by the contractor for continued use under a successor contract,

these items become Government-furnished property (GFP). The items shall be added to

the successor contract as GFP by contract modification.

(5) Financial/accounting treatment shall be in accordance with DoD Financial Management Regulations, DoD 7000.14-R, volume 4, chapter 6.

(6) To the extent that contractor-acquired material that is excess to the needs of the accountable contract is required on follow-on or other contracts, the costs of such property shall be credited to the losing contract; the gaining contract shall be debited accordingly. This supports the FAR 31.205-26 policy that material costs should be borne by the contract that consumes material when materials are required for specific contracts. This also complies with the requirements of DFARS clause 252.242-7004, Material Management Accounting Systems, requiring a material management and accounting system. This process applies only to contractor-acquired material. It does not apply to other contractor-acquired property, i.e., equipment, special tooling or special test equipment, or GFP.

PGI 245.402-71 Delivery of contractor-acquired property.

Contractor-Acquired Property Delivery Contract Line Item

CLIN

Item Description/

Nomenclature

Type Designation

NSN

PIN

Quantity

Unit of Measure

Serial Number

(UII)*

Original Unit Acquisition Cost

Date Placed in Service by the Contractor

x

x

As required

x

x

x

x

If known

x

x

*Contractor-acquired property items shall be marked as required by DFARS clause

252.245-7001.

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