Logistics & Supply Management

Government Furnished Equipment (GFE)

Government Furnished Equipment (GFE) (FAR Part 45) is equipment/property 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. GFE is usually determined by the government Program Manager (PM) and Contracting Officer.

Definition: Government Furnished Property (GFP) is the property in possession of or acquired by the Government and subsequently furnished to the Contractor for the performance of a contract.

Government Furnished Equipment (GFE) Policy

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 a sufficient reason for the furnishing or acquisition of property.
  •  “Exception”. The property provided to contractors for repair or overhaul is not subject to the requirements of the paragraph of bullet #2 above in this section.

Types of Government Furnished Equipment (GFE)

The types of GFE that are available :

  • 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

Two Types of Government Property on Contracts

Many of the requirements for these two categories of property are similar, but each has particular requirements that are different.

  • Government Furnished Property (GFP): is defined as property in the possession of or acquired by the Government and subsequently furnished to the Contractor for the performance of a contract. It comprises equipment and material (GFE & GFM) and includes items like spares and property furnished for repair, maintenance, overhaul, or modification. It can be items taken or requisitioned from Government inventory or purchased by the Government expressly to be provided on a contract.
  • Contractor Acquired Property (CAP): is property purchased or fabricated by a Contractor for use on a contract to which the Government has title but has not performed receipt and acceptance. CAP is usually generated on Cost Type and Time and Material contracts where the Government has title to property fabricated or purchased for use on the contract.

Government Furnished Equipment (GFE) Determination

As part of its responsibility for acquisition planning (FAR Part 7, Acquisition Planning), the requiring activity (project or program manager or purchase request generator) decides whether or not to furnish property to Contractors. The Government Contracting Officer will ultimately determine whether or not Government Property should be provided to a Contractor based on the FAR 45. 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. [1]

Government Furnished Equipment (GFE) Contract Considerations

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.  The general policy is to have the contractor furnish the equipment needed.

However, the government can furnish the equipment if it is in the government’s best interest 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.

Not Considered Government Furnished Equipment (GFE)

Government property that is incidental to the place of performance, when the contract requires Contractor personnel to be located on a Government site or installation, and when the property used by the Contractor within the location remains accountable to the Government

  • Located on a Government site or installation
  • Used within the location
  • Remains accountable to the Government

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Updated: 1/22/2023

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