We have a DoD CPFF contract which requires, in small part, that we develop and deliver a "widget". We have built the widget but the government would like us to send the widget to another prime contractor on its contract for temporary integration into its system for testing. Upon completion of the test, the widget would be returned to us for completion of the widget development and for later delivery to the Gov't. (As is, the widget is not complete for delivery to the Government but can be used for testing purposes.)
What is a contractual mechanism for the temporary transfer of Contractor Acquired Government Property from one prime contract to another prime contract (different prime contractors)?
The other contractor is arguing it can only accept the widget if its prime contract is modified to add the widget as GFE to its contract. Otherwise, it will not accept any risk of loss, damage, or destruction while the widget is being tested in its system. Since the widget is not complete for delivery and acceptance to the Government, and since it will be used by us to perform in other areas of our contract's scope, we cannot deliver the widget to the Gov't. The customer's Govt Property Administrator's suggestion is for us to enter into a Govt Property "Rent Free Use Agreement" where we would accept the risk for any damage, loss, or destruction of the widget while in the other prime contractor's possession. This seems unreasonable to us since the test is being requested at the urging of the Gov't.