Jump to content
The Wifcon Forums and Blogs

Jo Brown

Government Furnished Equipoment

Recommended Posts

We were contracted to build a facility (mfg) for the government under a CPFF award.  We built the facility and  purchased all the equipment for the facility with the CPFF funds awarded.  We are tracking this as contractor furnished equipment since it was purchased through the government contract.   Therefore, is it GFE or CFE.  When we are responding to RFPs do we disclose that the facility and equipment was purchased by the government thru the CPFF contract? Is that required to disclose?

Share this post


Link to post
Share on other sites
31 minutes ago, Jo Brown said:

We were contracted to build a facility (mfg) for the government under a CPFF award.  We built the facility and  purchased all the equipment for the facility with the CPFF funds awarded.  We are tracking this as contractor furnished equipment since it was purchased through the government contract.   Therefore, is it GFE or CFE.  When we are responding to RFPs do we disclose that the facility and equipment was purchased by the government thru the CPFF contract? Is that required to disclose?

If you purchased and provided the manufacturing process equipment and were reimbursed by the government, then it is Contractor acquired property  (FAR Part 45 definition) or CFE. If you installed the equipment , it is contractor installed equipment. 

I don't understand the other questions regarding disclosure of the pricing method. 

Share this post


Link to post
Share on other sites
54 minutes ago, Jo Brown said:

When we are responding to RFPs do we disclose that the facility and equipment was purchased by the government thru the CPFF contract? Is that required to disclose?

Not 100% sure what your concern may be. If it is providing past performance information, you can use the total contract value.

Share this post


Link to post
Share on other sites

It sounds like the first original CPFF contract is still ongoing. The government paid for the facility and equipment. The contractor currently has title to those assets. When that original contract ends, the contractor would likely have to transfer those assets to the government per the terms of the contract.

It sounds like the contractor wishes to bid on a separate and second contract and wants to use those assets in performing that second contract. Does the contractor have the right to use those assets on another contract while the original contract is ongoing, and if so, does the contractor have to identify the government interest in those assets in the proposal for that second contract?

If this is the case, I would get explicit written permission to use those assets on the second contract from the original contract, and second, I would disclose the status of those assets in the proposal for the second contract.

Share this post


Link to post
Share on other sites

Jo, look at FAR 52.245-1(e)(3).  If title to the equipment has passed in accordance with that clause, it is government property.  In that case, you would only be able to use the property on the contract under which it was acquired unless you got permission from the contracting officer to use it on some other contract.

Share this post


Link to post
Share on other sites

The OP stated that they were contracted to build a facility and that they "purchased all the equipment for the facility".  The OP didn't say that the contract was ongoing for continued use of the equipment.  However, if it is, then it becomes GFP for continued use under the contract.:

From definition of s in FAR 45.101:

Quote

 Government-furnished property” means property in the possession of, or directly acquired by, the Government and subsequently furnished to the contractor for performance of a contract. Government-furnished property includes, but is not limited to, spares and property furnished for repair, maintenance, overhaul, or modification. Government-furnished property also includes contractor-acquired property if the contractor-acquired property is a deliverable under a cost contract when accepted by the Government for continued use under the contract

At any rate, the OP has everyone here chasing all sorts of possible scenarios.  How about please just explaining what you were asking?

:"When we are responding to RFPs do we disclose that the facility and equipment was purchased by the government thru the CPFF contract? Is that required to disclose?"

Share this post


Link to post
Share on other sites

We had a CPFF contract to build and equip the facility for the DoD;  We have now completed that part of the contract and they have issued Option 1 - Sustainability and Maintenance of the facility.   We have permission to use the facilities on any government contract that we submit an RFP on a competitive government solicitation and then awarded.  When we are submitting our RFP do we have to disclose that the facility has been built and equipment purchased under the contract with the DOD and we have the DoD's permission to use this facility and equipment (at no charge) to the government agency?   Does that give us an unfair advantage over the other bidders? 

Share this post


Link to post
Share on other sites
2 hours ago, Jo Brown said:

We had a CPFF contract to build and equip the facility for the DoD;  We have now completed that part of the contract and they have issued Option 1 - Sustainability and Maintenance of the facility.   We have permission to use the facilities on any government contract that we submit an RFP on a competitive government solicitation and then awarded.  When we are submitting our RFP do we have to disclose that the facility has been built and equipment purchased under the contract with the DOD and we have the DoD's permission to use this facility and equipment (at no charge) to the government agency?   Does that give us an unfair advantage over the other bidders? 

Wow, that will take some legal research and formal agreement with your government contract agency.  I don't know how a DOD organization can simply allow one of its contractors to utilize government facilities and government owned equipment on other government contracts without going through some interagency agreement with the other organization and/or other formal property procedures. I assume that you are presently being paid to maintain the facility and the equipment that you would use on the other contract.

Share this post


Link to post
Share on other sites

Jo, read FAR 45.201(c) then read the solicitation on which you are proposing.  That should answer your question.

Share this post


Link to post
Share on other sites
1 hour ago, Retreadfed said:

Jo, read FAR 45.201(c) then read the solicitation on which you are proposing.  That should answer your question.

Jo, I think that 45.201, 45.202 and   45.3 would all have to be taken into account. 

Share this post


Link to post
Share on other sites
26 minutes ago, joel hoffman said:

Jo, I think that 45.201, 45.202 and   45.3 would all have to be taken into account. 

Joel, I agree that those FAR provisions should be taken into account by the contracting officer in preparing a solicitation.  However, offerors should read the solicitation to determine whether the guidance in those FAR sections has been incorporated into it and what offerors should do in response to the solicitation.

Share this post


Link to post
Share on other sites

See also corresponding DFARS coverage

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now

×