Government Furnished Equipment (GFE) (FAR Part 45) is equipment that is owned by the government and delivered to, or made available to a contractor. GFE is normally specified in a Request for Proposal (RFP) or contract. The determination of GFE is usually made by the government Program Manager (PM) and Contracting Officer.

DFARS Subpart 245.3: Providing Government Property to a Contractor

 The Government’s official GFE policy is stated in Federal Acquisition Regulation (FAR) section 45.102 “Policy” which states:

  • Contractors are ordinarily required to furnish all property necessary to perform Government contracts.
  • Contracting officers shall provide property to contractors only when it is clearly demonstrated:
    • To be in the Government’s best interest;
    • That the overall benefit to the acquisition significantly outweighs the increased cost of administration, including ultimate property disposal;
    • That providing the property does not substantially increase the Government’s assumption of risk; and
    • Government requirements cannot otherwise be met.
  • The contractor’s inability or unwillingness to supply its own resources is not sufficient reason for the furnishing or acquisition of property.
  •  “Exception”. Property provided to contractors for repair or overhaul is not subject to the requirements of paragraph of bullet #2 above in this section.

Types of Government Furnished include:

  • GFAE: Government-Furnished Aeronautical Equipment
  • GFE: Government-Furnished Equipment
  • GFF: Government-Furnished Facilities
  • GFI: Government-Furnished Information
  • GFM: Government-Furnished Material
  • GFP: Government-Furnished Property
  • GFS: Government-Furnished Software

The Government Contracting Officer is responsible for determining whether or not Government Property should be provided to a Contractor. In providing Government Property to a Contractor the Contracting Officer must also make sure that a Contractor is not given an unfair competitive advantage over another Contractor who may not have Government Property.

When considering Government contracts, there are two approaches that are used for providing the equipment necessary to execute the contract.  The equipment can be Contractor-Furnished Equipment (CFE) or GFE.  Therefore, analyses must be performed to determine the optimal approach.  General policy is to have the contractor furnish the equipment needed.  However, the equipment can be furnished by the Government if it is in the best interest of the Government to provide GFE for use by the contractor.  Typically, a model is developed for analyzing both CFE and GFE when considering the use of GFE.  Decisions to provide GFE must be identified and a comparison made of the cost difference between using GFE or CFE.  Reasons for this decision can be related to standardization, economy, production, or other circumstances. [1]

The Contractor shall use Standard Form 1428 for Inventory Disposal.

AcqLinks and References:

Updated: 7/19/2017

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