FAR clauses/Part 45/Checked 15 Sep 2026

FAR 52.245-1
Government Property

Clause date

SEP 2021

Prescribed at

FAR 45.107(a)(1). Except as provided in 45.107(d), insert in cost-reimbursement and time-and-materials contracts, labor-hour contracts when property is expected to be furnished, fixed-price contracts when the Government will provide Government property, and Part 12 contracts where Government property exceeding the SAT is furnished or the contractor is directed to acquire Government-titled property.

Applies to

Cost-type, T&M and labor-hour contracts, and fixed-price or commercial contracts where the Government furnishes property.

Flowdown

Flows down in some subcontracts
52.245-1(b)(3) requires the Contractor to include the requirements of the clause in all subcontracts under which Government property is acquired or furnished for subcontract performance. Paragraph (f)(1)(v) also requires the Contractor to ensure appropriate flow down of contract terms (e.g., extent of liability for loss of Government property) and to periodically review subcontractors' property management systems. Not listed in 52.212-5(e)(1) or 52.244-6(c)(1).

Full text

FAR 52.245-1 on Acquisition.gov

… The Contractor shall have a system of internal controls to manage (control, use, preserve, protect, repair, and maintain) Government property in its possession. The system shall be adequate to satisfy the requirements of this clause. In doing so, the Contractor shall initiate and maintain the processes, systems, procedures, records, and methodologies necessary for effective and efficient control of Government property. The Contractor shall disclose any significant changes to its property management system to the Property Administrator prior to implementation of the changes. …

From the clause · Codified FAR · FAC 2026-01

This is the codified text, not any agency's Revolutionary FAR Overhaul deviation. An agency running a class deviation may have this clause renumbered, rewritten or prescribed differently — check the deviation before you put a clause in a solicitation.