Government Furnished Material (GFM)
Government Furnished Material (GFM) is material provided by the government to a contractor for use in performing a government contract, while ownership remains with the government. Contractors are responsible for care, custody, control, and proper usage of GFM throughout contract performance.
What Is Government Furnished Material?
Government Furnished Material (GFM) is material provided by the government to a contractor for use in performing a government contract, while ownership remains with the government.
Key Characteristics
Provided directly by the government, not purchased by the contractor
Government retains ownership throughout contract performance
Contractor is responsible for care, custody, and control
Used only for the specific contract identified
Subject to tracking, reporting, and return requirements
How It Works in Government Contracting
Government Furnished Material appears during contract performance when the government supplies materials needed to meet contract requirements.
Where it appears: During contract performance, when the government supplies materials needed to meet contract requirements.
Who uses it: Commonly used in manufacturing, construction, defense, and specialized technical contracts where the government controls critical components.
Authorization: Contracting officers authorize GFM through contract clauses and schedules, specifying quantities, delivery timing, and usage limitations.
Regulatory Framework
GFM is governed primarily by Federal Acquisition Regulation (FAR) Part 45, which addresses government property in the possession of contractors. Additional clauses in FAR Part 52 define contractor responsibilities related to accountability, loss, damage, and reporting.
Why It Matters for Contractors
Business implications: Proper handling ensures regulatory compliance and avoids liability for lost or damaged materials.
Compliance impact: GFM affects contractor operations, compliance, and risk management.
Strategic importance: Effective GFM management can reduce project costs and support schedule performance by eliminating the need for contractors to procure certain materials.
Risk considerations: Failure to manage GFM correctly can result in financial liability, audit findings, or contract termination.
Common Misconceptions
Contractors own GFM once it is delivered.
The government retains ownership at all times, even while the contractor is using the material.
GFM can be used across multiple contracts.
GFM is restricted to the specific contract for which it was provided and cannot be used elsewhere without authorization.
The government is always responsible for loss or damage.
Contractors may be held financially responsible depending on fault, contract terms, and regulatory findings.
Frequently Asked Questions
Who owns Government Furnished Material?
The government retains ownership at all times, even while the contractor is using the material.
What happens if GFM is lost or damaged?
The contractor may be held financially responsible depending on fault, contract terms, and regulatory findings.
Can a contractor request additional GFM?
Yes, but requests must be justified and approved by the contracting officer.
Is GFM the same as Government Furnished Equipment?
No. GFM refers to consumable or component materials, while Government Furnished Equipment typically refers to durable equipment.
Related Government Contracting Topics
Government Furnished Equipment (GFE): Equipment provided by the government for contractor use.
Government Property: All property owned or leased by the government in contractor possession.
FAR Part 45: Regulations governing government property management.
Property Accountability System: Contractor systems for tracking government property.
Contracting Officer: Government official authorized to administer contracts.
Property Management Audit: Government review of contractor property controls.
Strategic Importance
Government Furnished Material is a critical component in many federal contracts, particularly in defense, manufacturing, and construction where the government controls sensitive or specialized materials.
Contractors who implement robust property management systems, maintain accurate records, and follow regulatory requirements for GFM reduce their risk exposure, maintain eligibility for future contracts, and demonstrate their reliability as government partners.