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FAR Part 45 is the part of the Federal Acquisition Regulation (48 CFR Part 45) that governs Government property in the hands of contractors. It sets the rules for when an agency may furnish property, who holds title, who bears the risk of loss, and how surplus contractor inventory is reported and disposed of. It is a contracting rule, not a grants rule.
Not the FAA rule: searches for “far part 45” often return 14 CFR Part 45, the FAA’s aircraft identification and registration marking regulation. That is a different rule in a different title of the CFR. This page covers 48 CFR Part 45, Government Property. Everything below is as described on acquisition.gov on 2026-10-29.
What FAR Part 45 is and who runs it
Section 45.000 states the scope: the part “prescribes policies and procedures for providing Government property to contractors; contractors’ management and use of Government property; and reporting, redistributing, and disposing of contractor inventory.” The contracting officer, supported by a property administrator, applies Part 45 to individual contracts.
The key definitions are in 45.101:
- Government property is “all property owned or leased by the Government,” and includes both Government-furnished property and contractor-acquired property.
- Government-furnished property (GFP) is property “in the possession of, or directly acquired by, the Government and subsequently furnished to the contractor.”
- Contractor-acquired property is property “acquired, fabricated, or otherwise provided by the contractor for performing a contract” and to which the Government holds title.
- Property means “all tangible property, both real and personal.”
The Part is organised into six subparts: 45.1 General, 45.2 Solicitation and Evaluation Procedures, 45.3 Authorizing the Use and Rental of Government Property, 45.4 Title to Government Property, 45.5 Support Government Property Administration, and 45.6 Reporting, Reutilization, and Disposal.
Who it applies to
Part 45 applies to contractors that receive, acquire or use Government property under a federal contract. Research institutions meet it when they hold federal contracts (as distinct from grants or cooperative agreements). The contract clause at 52.245-1 has an Alternate II that 45.107 prescribes for certain university and nonprofit research contracts, so the Part anticipates that audience directly. Awards made as grants follow a different framework; see government-furnished property on university research awards for the 2 CFR 200.312 view, and grant vs contract vs cooperative agreement for how to tell which framework your award sits under.
What it requires, subpart by subpart
Policy: contractors normally supply their own property (45.102)
Contractors are generally expected to provide all property needed to perform a contract. A contracting officer may furnish property only when doing so is clearly in the Government’s best interest and the requirement cannot otherwise be met. A contractor’s inability or unwillingness to supply its own resources is not enough by itself.
Management of property (45.103 and 45.105)
Agencies are to allow contractors to use voluntary consensus standards and industry-leading practices to manage Government property, and agencies generally will not require a separate property management system (45.103). Under 45.105, if a contractor’s property management system is found noncompliant, the property administrator notifies the contractor in writing and requests a corrective action plan.
Transfers between contracts (45.106)
Property moves from one contract to another only when firm requirements exist under the gaining contract, and it is then treated as GFP for that contract.
Contract clauses (45.107)
FAR 52.245-1, Government Property, is the core clause. 45.107 prescribes Alternate I for contracts outside the contract types listed in 45.104(a) and Alternate II for certain university and nonprofit research contracts. FAR 52.245-2 applies to certain fixed-price service contracts performed on a Government installation, and FAR 52.245-9, Use and Charges, is included whenever 52.245-1 is.
Rent and use (45.3)
Under 45.301, “Government property shall normally be provided on a rent-free basis.” Rent applies to any portion or capacity used for non-government commercial purposes, and prior approval of the Head of the Contracting Activity is required when high non-Government use is expected.
Title and liability by contract type
The two questions that matter most in practice are who owns the property and who pays if it is lost. The Part answers both by contract type.
| Question | Rule | Section |
|---|---|---|
| Title to GFP | The Government retains title until the property is properly disposed of; leased property later furnished to a contractor is treated as GFP | 45.401 |
| Title to contractor-acquired property, fixed-price contract without specific financing or title terms | The contractor retains title to property it acquires for use on the contract, except deliverable end items | 45.402 |
| Title to contractor-acquired property, cost-type and time-and-materials contracts | The Government takes title to property for which the contractor is reimbursed | 45.402 |
| Contractor liability for loss of Government property | Generally not liable under cost-reimbursement, time-and-materials, labor-hour and certain fixed-price contracts; the contracting officer, with the property administrator, sets the extent of liability and recovery | 45.104 |
| Where restitution goes | To the Treasury as miscellaneous receipts, unless a statute says otherwise | 45.104 |
Compliance steps
The Part does not lay out a single checklist, but its sections imply a sequence a contractor can follow:
- Read the solicitation’s property list. Under 45.201 the solicitation lists expected GFP by name, part number, manufacturer, quantity, unit acquisition cost and unique-item identifier, states whether it is provided as-is, and gives inspection instructions.
- Describe what you will use and how you will manage it. Offerors describe any rent-free property they plan to use, its availability dates, the rent otherwise applicable, and their property management system. Management plans must be consistent with the solicitation requirements (45.202).
- Price the cost of making property usable. Competitive solicitations should make the contractor responsible for costs such as transportation and installation (45.201).
- Confirm the clauses in the award. Check which version of 52.245-1 and which companion clauses apply (45.107).
- Manage and report to your property administrator. Use recognised standards and practices (45.103) and respond promptly to any noncompliance notice with a corrective action plan (45.105).
- Handle surplus and disposal through the contracting officer. Subpart 45.6 covers reporting, reutilization and disposal.
Typical timeline phases
The Part’s structure follows the life of a contract. No calendar dates are fixed by the text; the phases follow the contract.
- Solicitation and evaluation (subpart 45.2). GFP is listed, offerors describe their property plans, and the contracting officer accounts for any competitive advantage from an offeror holding Government property, using a rental-equivalent evaluation factor that is applied for evaluation only (45.202).
- Award (45.107 and 45.4). Clauses are included and title rules attach based on contract type.
- Performance (45.1, 45.3 and 45.5). The contractor manages and uses the property, rent rules apply to any non-government commercial use, and property administration supports oversight.
- Closeout (subpart 45.6). Contractor inventory is reported, reutilised or disposed of.
Common mistakes
- Applying grants property rules to a contract. Contracts follow FAR Part 45 and 52.245-1; grants follow 2 CFR 200. Check the award type first. See also FAR Part 31 vs 2 CFR 200 for the parallel split on cost rules.
- Assuming the Government will furnish what you lack. 45.102 makes contractor-provided property the norm.
- Assuming everything bought for a cost-type contract is yours. Under 45.402 the Government takes title to property reimbursed under cost-type and time-and-materials contracts.
- Assuming you are always liable for losses, or never. 45.104 ties liability to contract type, and the contracting officer sets the extent in the contract.
- Using Government property commercially without approval. Rent applies to non-government commercial use (45.301).
- Ignoring a noncompliance notice. 45.105 expects a corrective action plan.
- Citing the FAA rule. 14 CFR Part 45 concerns aircraft marking, not Government property.
Related programs and provisions
| Provision | What it covers |
|---|---|
| FAR 52.245-1, Government Property | Core Government property clause, with Alternates I and II (45.107) |
| FAR 52.245-2 | Certain fixed-price service contracts on a Government installation (45.107) |
| FAR 52.245-9, Use and Charges | Included whenever 52.245-1 is included (45.107) |
| 2 CFR 200.312 guide | The grants-side treatment of federally owned property on research awards, a separate framework from FAR Part 45 |
| Equipment under 2 CFR 200.313 | Grants-side equipment management |
| FAR 31.205 | Cost principles that govern allowable costs on contracts |
For wider context on buying and contracting by research institutions, see federal procurement for research institutions.
FAQ
Is FAR Part 45 the same as 14 CFR Part 45?
No. FAR Part 45 is in 48 CFR and covers Government property in contractors’ hands. 14 CFR Part 45 is an FAA rule on aircraft identification and registration marking.
Does FAR Part 45 apply to grants?
No. It applies to contracts. Grants and cooperative agreements are governed by 2 CFR 200, which treats federally owned property differently.
Who owns property a contractor buys for a contract?
It depends on contract type. On cost-type and time-and-materials contracts the Government takes title to property the contractor is reimbursed for. On fixed-price contracts without specific financing or title terms, the contractor retains title, except for deliverable end items (45.402).
Is the contractor liable if Government property is lost?
Generally not under cost-reimbursement, time-and-materials, labor-hour and certain fixed-price contracts, but the contracting officer and property administrator set the extent of liability and recovery (45.104).
Does the contractor pay rent for Government property?
Normally no; property is provided rent-free, except for portions or capacity used for non-government commercial purposes (45.301).
Which clause carries the main requirements?
FAR 52.245-1, Government Property, with 52.245-9 added whenever it is included (45.107).
Sources
- FAR Part 45, Government Property, acquisition.gov/far/part-45 (FAC 2026-01), checked 2026-10-29.
- FAR Overhaul Part 45 deviation guide, acquisition.gov, checked 2026-10-29. The FAR Overhaul deviations are published separately from the codified text; check the deviation text for your agency.
- 48 CFR Part 45, Cornell LII, used for structure, checked 2026-10-29.
Programs and rules change; this page describes the text as it appeared on the official site on 2026-10-29 and is not legal advice.
