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Repair of Aircraft Wing. GFP or Not?

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Assume the Government has a requirement for repair of an aircraft wing to take place on a Government site.

Got it, I don't need to satisfy the four criteria at FAR 45.102(b). Clearly, I would have to provide access to the aircraft wing in order for its contract repair to be possible.

What I am trying to understand is, are there situations where an aircraft wing is incidental to the place of performance IAW FAR 45.000(b)(5)?

I know the examples FAR cites for incidental Government property are routine office supplies--assets part and parcel of an office. Contractor presumably requires access to the office (to include office supplies) to perform required services.

Could this exception apply to an aircraft wing? The Contractor requires access to the aircraft wing to provide required repair services.

Since the Government will have never relinquished stewardship, my opinion is that treating the aircraft wing as GFP and requiring the Contractor to assume management, individually track, and dispose is complete overkill. I seek compliance, but need simplicity.

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If the property remains in the Government's possession (on the Government site) and remains in the Government's property records, then it isn't GFP because it is never "furnished to the Contractor."  Read the definition of Government-furnished property in the Government Property clause.

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On ‎6‎/‎4‎/‎2019 at 10:21 PM, Sunstrider said:

Assume the Government has a requirement for repair of an aircraft wing to take place on a Government site.

Got it, I don't need to satisfy the four criteria at FAR 45.102(b). Clearly, I would have to provide access to the aircraft wing in order for its contract repair to be possible.

What I am trying to understand is, are there situations where an aircraft wing is incidental to the place of performance IAW FAR 45.000(b)(5)?

I know the examples FAR cites for incidental Government property are routine office supplies--assets part and parcel of an office. Contractor presumably requires access to the office (to include office supplies) to perform required services.

Could this exception apply to an aircraft wing? The Contractor requires access to the aircraft wing to provide required repair services.

Since the Government will have never relinquished stewardship, my opinion is that treating the aircraft wing as GFP and requiring the Contractor to assume management, individually track, and dispose is complete overkill. I seek compliance, but need simplicity.

An aircraft/wing isn't even remotely considered incidental property. The examples of incidental in the FAR are to preclude the -1 clause use for small amounts of govt property (GP) where risk to assets do not need that much protection.  Something you need to consider is how will our aircraft be protected while the contractor performs the repair?  Is it minor repairs or major?

Something to think about:

- GFP definition includes: Government-furnished property includes, but is not limited to, spares and property furnished for repair, maintenance, overhaul, or modification.

- 245.107 Contract clauses.

(1)(i) In lieu of the prescription at FAR 45.107(d), use the clause at FAR 52.245-1, Government Property, in all purchase orders for repair, maintenance, overhaul, or modification of Government property regardless of the unit acquisition cost of the items to be repaired.

- DFARS 228.370 -

(b)(1) Use the clause at 252.228-7001, Ground and Flight Risk, in all solicitations and contracts for the acquisition, development, production, modification, maintenance, repair, flight, or overhaul of aircraft, except those solicitations and contracts–

  • (i) That are strictly for activities incidental to the normal operations of the aircraft (e.g., refueling operations, minor non-structural actions not requiring towing such as replacing aircraft tires due to wear and tear);

    (ii) That are awarded under FAR Part 12 procedures and are for the acquisition, development, production, modification, maintenance, repair, flight, or overhaul of aircraft; or otherwise involving the furnishing of aircraft

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GFP - Government is providing the broken AC wing to the contractor (or the contractor's maintenance team if work is to be accomplished on government property ) to do repairs. 

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1 hour ago, GtarJohn said:

GFP - Government is providing the broken AC wing to the contractor (or the contractor's maintenance team if work is to be accomplished on government property ) to do repairs. 

If the property remains in the Government's possession and remains in the Government's property records ("repair of an aircraft wing to take place on a Government site"), then it isn't GFP because it is never "furnished to the Contractor."  Read the definition of Government-furnished property in para. (a) of the clause at FAR 52.245-1, Government Property.

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I digress...I've gotten too used to working on a GOCO where the contractor takes stewardship and manages the property records from AC induction until the FORM JPS-5-206-A is signed off and the bird flies away.  We call it GFP on all our TOs...even though we own the hangars (they also manage the maintenance of the facilities as well).  I should have read the original post more carefully.

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3 hours ago, ji20874 said:

If the property remains in the Government's possession and remains in the Government's property records ("repair of an aircraft wing to take place on a Government site"), then it isn't GFP because it is never "furnished to the Contractor."  Read the definition of Government-furnished property in para. (a) of the clause at FAR 52.245-1, Government Property.

If we contract out repairs to a wing, it's still GFP no matter where it's located. Read DFARS 245.107.

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1 hour ago, 88rocco said:

If we contract out repairs to a wing, it's still GFP no matter where it's located. Read DFARS 245.107. 

Hi 88rocco. Having difficulty determining how you got this conclusion from DFARS 245.107. Could you please elaborate/quote in detail the supporting language in DFARS 245.107 that led you to the above quoted conclusion?

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3 hours ago, 88rocco said:

If we contract out repairs to a wing, it's still GFP no matter where it's located. Read DFARS 245.107.

Not true.

DFARS 245.107 says to include the clause at FAR 52.245-1 "...in all purchase orders for repair, maintenance, overhaul, or modification of Government property..."

Now, please read the definition of Government-furnished property (GFP) in para. (a) of that clause.  

Perhaps this is your error:  You may be conflating Government-furnished property and Government property?  These are different.  Both of these are defined in para. (a) of the clause.  In the original posting, the aircraft wing IS Government property, but it IS NOT Government-furnished property (or probably is not, as the property likely remains on the Government's property records and never transfers to the contractor's property records).  This is a very common error -- but please, look for yourself -- look in para. (a) of the clause and see for yourself that Government-furnished property has one definition and Government property has another definition.

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I know the difference between the GP and GFP.  I lazily made reference to "GFP" because unless the action falls under 45.107 (d), 52.245-1 should be inserted and then the wing will be treated as such.  I believe the OP was searching more towards "how can I side-step inserting 52.245-1"; not really  "how to define GFP".  IRT 45(b)(5), seen a few times folks trying to s-t-r-e-t-c-h the definition of "incidental" and "on a govt installation" to try and justify NOT inserting 52.245-1 "GP Clause". 

ji20874, you made reference to:  "but it IS NOT Government-furnished property (or probably is not, as the property likely remains on the Government's property records and never transfers to the contractor's property records). " 

GFP remains on the Govt Property APSR even when it's in the contractors hands. We maintain fiduciary accountability, while the contractor maintains stewardship.

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The Air Force Strategic Air Command had  hundreds of large Oshkosh snow plows and Snow blowers on heavy trucks. They had contracts with Oshkosh Truck company to do depot level complete overhauls/rebuilds after 10 years or probably more of service. AF would ship them to the factory at Oshkosh, WS and they would come back, refreshed and updated, with new fleet numbering on the cab  (the prefix year was updated but truck retained same fleet number). 

ji, are you saying that the Air Force removed each vehicle from its property records while it was in the Factory for rebuild? 

I don’t think so. Not a logistician or property specialist but I’m pretty sure that they were always on the USAF property books and part of the Air Force Strategic Air Command’s inventory. 

The fleet at KI Sawyer AFB had almost 60 Oshkosh trucks in its fleet. Biggest in the AF to my knowledge. They ran 16-24 hours per day on a three shift operation in the winter time (November into May) . 

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The trucks weren’t “consumed” during performance of the contract. They were overhauled. Same frames, cabs and other usable parts were retained...

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Joel, it sounds like you are saying that the characterization of the property is GFP whether the property remains on an AFB and is made available to a contractor to work on vs. the government physically ships it to the contractor plant in Oshkosh? 

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Neil, there are various types of government property furnished to contractors. Often it is materials to be incorporated into a product, facility, equipment, etc. or otherwise consumed by the contractor.

Other times it may be something that is turned over for repairs, modifications, re-build, etc. then returned to the government. 

I’m simply saying that I don’t think that all GFP is removed from the government’s property records and inventory, such as the Oshkosh Snow removal equipment and perhaps a wing to an aircraft being repaired or modified. 

I don’t think that the location of the contract work matters for purposes of retainage on the DoD’s property records. I’m not familiar with the APSR though. 

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https://www.esd.whs.mil/Portals/54/Documents/DD/issuances/dodi/500064p.pdf?ver=2019-06-10-100933-460

4.4. PROPERTY FURNISHED TO OR IN THE POSSESSION OF A THIRD PARTY. a. Although the DoD may not have physical custody, in order to maintain effective property accountability and for financial reporting purposes, DoD Components must establish and maintain records and accountability for government property of any value furnished to contractors as GFP or loaned to outside entities such as federal agencies, State and local governments, and foreign governments.

f. Third party property management or accountability systems, e.g. custodial systems, must not supersede or replace the APSR or the accountable property records maintained by the DoD.

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 Thanks, Rocco  

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On 6/4/2019 at 8:21 PM, Sunstrider said:

Assume the Government has a requirement for repair of an aircraft wing to take place on a Government site.

Since the Government will have never relinquished stewardship, my opinion is that treating the aircraft wing as GFP and requiring the Contractor to assume management, individually track, and dispose is complete overkill. I seek compliance, but need simplicity.

  I don't think Government accountability record keeping has anything to do with determining whether an item is GFP or not. Of course there should be Government record keeping of GFP and non-GFP property that is owned/accountable by/to the government.  Rocco, I did not see where you pointed to anything specific in the DOD Instruction that determines when an item is GFP or not. Also, you alleged that DFARS 245.107 makes the wing in this case (not shipped to or in possession of the contractor), GFP. You did not point to anything in DFARS 245.107 that sustains your conclusion. Therefore, Sunstrider, based on the information in this thread, I agree with you that the wing is not GFP.

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Neil, the DoDI link had nothing to do labeling an item as GFP, only prior discussion of accountability when GFP is provided and ji's incorrect assumptions. Whether some of you agree or not, go ahead. I don't care. But the OP is just trying to tap dance around from inserting 52.245-1 by trying to call an aircraft wing incidental.  Yeah, lets call a wet bay an office and we can setup some computers and desks in a fuel tank.  Geesh.   Not sure how much more clearer the definitions need to be.  BLUF is, the OP's action most likely requires 52.245-1 which is a clause for what? Ah yes, GP / GFP (or anything else you want to call it).

45.000

(a) This 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.

FAR 45  definition:  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.

245.107 Contract clauses.

(1)(i) In lieu of the prescription at FAR 45.107(d), use the clause at FAR 52.245-1, Government Property, in all purchase orders for repair, maintenance, overhaul, or modification of Government property regardless of the unit acquisition cost of the items to be repaired.

 

How much clearer does it have to be for some?  

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On 6/4/2019 at 10:21 PM, Sunstrider said:

Assume the Government has a requirement for repair of an aircraft wing to take place on a Government site.

Got it, I don't need to satisfy the four criteria at FAR 45.102(b). Clearly, I would have to provide access to the aircraft wing in order for its contract repair to be possible.

What I am trying to understand is, are there situations where an aircraft wing is incidental to the place of performance IAW FAR 45.000(b)(5)?

I know the examples FAR cites for incidental Government property are routine office supplies--assets part and parcel of an office. Contractor presumably requires access to the office (to include office supplies) to perform required services.

Could this exception apply to an aircraft wing? The Contractor requires access to the aircraft wing to provide required repair services.

Since the Government will have never relinquished stewardship, my opinion is that treating the aircraft wing as GFP and requiring the Contractor to assume management, individually track, and dispose is complete overkill. I seek compliance, but need simplicity.

Sunstrider,

Some factors to consider since you haven't explained the type of repairs needed:  where will the materials come from for the repair? Would they be FFP? Is there a risk of losing the aircraft due to poor maintenance practices by the KTR? If so, how is that mitigated? Also, there wouldn't be any disposition requirements if the aircraft is only repaired and returned to the unit.

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If I contract for a locksmith to come into a Government office and install or repair a lock on a Government-owned door, or on several doors, or a copier repairman to repair a Government-owned copier, or several copiers, with the contractor responsible for providing all labor and materials, I’m not going to classify all the doors or the copier as GFP.  Others here might — different strokes for different folks.

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4 hours ago, ji20874 said:

If I contract for a locksmith to come into a Government office and install or repair a lock on a Government-owned door, or on several doors, or a copier repairman to repair a Government-owned copier, or several copiers, with the contractor responsible for providing all labor and materials, I’m not going to classify all the doors or the copier as GFP.  Others here might — different strokes for different folks.

Agreed. The doors and copiers are government property but are not transferred to the contractors as government furnished property. 

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4 hours ago, ji20874 said:

If I contract for a locksmith to come into a Government office and install or repair a lock on a Government-owned door, or on several doors, or a copier repairman to repair a Government-owned copier, or several copiers, with the contractor responsible for providing all labor and materials, I’m not going to classify all the doors or the copier as GFP.  Others here might — different strokes for different folks.

So you'd probably use FAR 12 procedures where GP is under the SAT? 

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On 6/25/2019 at 4:07 AM, 88rocco said:

So you'd probably use FAR 12 procedures where GP is under the SAT

 

What if the property being repaired was an HVAC, sprinkler, or alarm system with a value exceeding the SAT?  Are you saying 52.245-1, 52.245-9, (and associated DFARS clauses if applicable) need to be included in the contract? 

 

On 6/24/2019 at 9:48 PM, 88rocco said:

45.000

(a) This 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.

FAR 45  definition:  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.

245.107 Contract clauses.

(1)(i) In lieu of the prescription at FAR 45.107(d), use the clause at FAR 52.245-1, Government Property, in all purchase orders for repair, maintenance, overhaul, or modification of Government property regardless of the unit acquisition cost of the items to be repaired.

 

How much clearer does it have to be for some?  

I'm not saying you're wrong, but you are waaaayyyy too confident in your interpretation.  The FAR part 45 definition of GFP is worthless, plain and simple.  It essentially defines a term using the words of the term itself, i.e., government furnished property is government property furnished to the contractor.  Gee thanks for that definition. 

The issue is what does "furnished" mean?  "Furnished" is not defined in the FAR.  It might mean "make available to the contractor," in which case you would be correct.  But, it might also mean "give physical custody or possession to." If it is the latter, then government property that is made available to a contractor for repair but which the contractor does not take possession of is not GFP.

Take a look at some of the language of 52.245-1:

Quote

(d) Government-furnished property.

(1) The Government shall deliver to the Contractor the Government-furnished property described in this contract.... timely delivery of Government-furnished property....

"Deliver to" and "timely delivery" sounds like the clause contemplates giving the contractor physical custody of the property.

Now, take a look at the numerous requirements imposed on the contractor by the clauses and consider the purpose of the clauses, i.e., ensuring accountability and minimizing the loss of GP.  Does it make sense to impose these requirements, increase administrative burden, and potentially increase the cost of performance when the property never leaves the physical custody of the government?

Again, I'm not saying your interpretation is definitively wrong.  I'm sure that many people, especially property specialists and others with a vested interested in maximum inclusion of the property clause, would agree with you.  But the interpretation is not nearly as clear cut as you make it seem.  There are solid legal, policy, and practical arguments that government property is not "furnished to the contractor" while it remains in the custody of the government.

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I suggest reading Chapter 7 “Government Property” in “Administration of Government Contracts” by Nash, et alia. 

It begins with: “The government’s policy is that contractors are ordinarily required to furnish all property necessary to perform a government contract, FAR 45.102. Nevertheless, government property, such as materials, production facilities, or test equipment, is often used by contractors during the performance of government contracts. Much of this property is in the nature of tooling or facilities furnished to assist contractors in performing in the contractual work. Material to be incorporated into manufactured products is also furnished when the government decides that it’s interests will be served by furnishing the material rather than permitting the contractor to purchase it. When government property is used by a contractor in the performance of a government contract, the process of contract administration is more complex.”

4 hours ago, Lionel Hutz said:

What if the property being repaired was an HVAC, sprinkler, or alarm system with a value exceeding the SAT?  Are you saying 52.245-1, 52.245-9, (and associated DFARS clauses if applicable) need to be included in the contract? 

This isn’t “government furnished property” in that sense. It is real property or real property installed equipment, remaining in place in a government facility that needs to be repaired or replaced under a construction contract or as a construction operation within some other type of contract (facilities contract for instance) . It isn’t being turned over to the contractor to perform a contract in that sense. 

If a contractor takes or the government delivers a pump or component off-site to overhaul, repair, etc., that might be considered GFP, while in the contractor’s possession, especially if it is of some significant value that warrants property tracking and accountability. 

Secondly, this should not normally be contracted for  as a commercial item or commercial services contract, unless it pertains to a specific component(s) within a system, such as a valve, control, pump  or other standard individual components of a system that are typically purchased and routinely serviced, repaired or replaced by service technicians, etc.

Now- if the government provides government owned materials to be incorporated into the repair or replacement of the government’s HVAC system, etc., those components would likely be GFE/GFP. 

Another example would be government provided aggregates for asphalt concrete or Portland cement concrete to be used on a paving project or a building construction, those would be treated as GFP. 

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