PA administers the contract requirements and obligations related to GP in the possession of a contractor and acts as a liaison between the contractor and the CO. The property custodian accepts custodial responsibility for GP. The PLCO oversees the property disposal process. GP and Acquisition Planning Providing GP must be a conscious, deliberate, and well-thought-out acquisition-planning decision. The customer/requiring activity (project manager, program manager, or purchase request generator), as part of its responsibility for acquisition planning, is the decision point as to whether or not to furnish property to contractors. The basis for this decision shall be documented by the requiring activity and provided to the contracting officer. When a written Acquisition Plan is required, GP is one of the areas that must be discussed in the plan. GP and Solicitation Requirements The solicitation must require contractors to submit the following property-related information with their offers: A list or description of all government property that the offeror, or its subcontractors, propose to use on a rent-free basis The dates during which the property will be available for use The amount of rent that would otherwise be charged in accordance with FAR 52.245-9, Use and Charges A Property Management Plan (PMP) GP and Source Selection One of the foundations of government contracting is the notion of fairness. Keeping a level playing field in the awarding of government contracts is crucial to maintaining the faith and confidence of the public. The contracting officer must address and mitigate real or even perceived unfair competitive advantages. A contractor, with all of its equipment and tooling provided by the government, has an advantage over a competitor who has incurred a significant capital investment or a potential outlay to control the use of similar equipment or tooling.
Therefore, the contracting officer is required to consider any potentially unfair competitive advantage that may result from a contractor possessing government property. The method the government applies when attempting to level the playing field must be stated in the evaluation criteria of Section M of the solicitation. Managing Risk When the decision is made to provide GP, another decision is made simultaneously – that being to take on the added risk associated with providing that property. As a risk manager, you must understand the inherent risks to the government, and you must put measures into the contract to mitigate them. Those risks come in many forms and fashions. Protecting the government’s interests in this area requires that you thoroughly understand the rights and responsibilities of the parties. The most common government-liability risks include those related to suitability for use, timely delivery, and replacement of defective/broken GP. If the government fails to comply with the terms and conditions of the contract relating to government property, then it may face the added costs of a request for equitable adjustment.
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