AC123

Thanks for the responses!

The procurement cost of those items. When the contract is complete and you are going through the closeout process, if the contractor retains title to the CAP do those costs stay on the contract?

Hello! Yes, I have read the GFP clause. Paragraph J, states "except as otherwise provided for in this contract" and paragraph J, (2), (i), (B) states "contractor acquired property, to which the Government has obtained title under paragraph (e) of this clause ........". I understand what the process is regarding disposition of CAP for cost type contracts or cases in which the Government retains title to the property. The GFP clause and others are clear in that regard. My question is more so regarding CAP that the contractor retains title to. Per FAR, the Contractor retains title to CAP under FFP contracts and FPIF contracts when that CAP is not a deliverable or absent any financing terms. That part is clear as well. The part I have a question about is the costs for that CAP. If the Contractor retains title to the CAP do the costs for that CAP stay on the contract?

If a Contractor retains title to any residual inventory/Contractor Acquired Property (CAP) (that is not a deliverable and no financing provisions) on a FFP or FPIF contract do the costs for said inventory/CAP remain on the contract?