Government Furnished Property (GFP)
Government Furnished Property (GFP) is property owned or acquired by the government and provided to a contractor for use in performing a specific government contract.
What Is Government Furnished Property?
Government Furnished Property (GFP) is property owned or acquired by the government and provided to a contractor for use in performing a specific government contract.
Owned or directly acquired by the government
Provided to contractors for contract performance
Can include equipment, materials, tooling, or facilities
Remains government property throughout the contract
Subject to strict control and accountability requirements
How It Works in Government Contracting
Government Furnished Property appears during contract performance when the government determines it is more efficient or necessary to supply property rather than require the contractor to obtain it. Government agencies provide GFP to support mission requirements, control sensitive assets, or reduce overall contract costs.
In practice, GFP is listed in the contract, delivered or made accessible to the contractor, tracked throughout performance, and returned, disposed of, or transferred at contract closeout.
Regulatory Framework
Government Furnished Property is primarily governed by Federal Acquisition Regulation (FAR) Part 45, which establishes requirements for property management, accountability, and reporting.
Defense contracts may also be subject to additional property rules under Defense Federal Acquisition Regulation Supplement (DFARS) clauses.
Why It Matters for Contractors
Operational Impact: GFP directly affects contractor operations and cost structures. Contractors must integrate government-provided assets into their workflows while maintaining strict accountability.
Compliance and Record-Keeping: Contractors must maintain accurate records, safeguard government assets, and follow contract-specific property management requirements to remain compliant throughout performance.
Audit Risk and Past Performance: Proper GFP management reduces audit risk and supports strong past performance evaluations. Mismanagement can lead to financial liability, disallowed costs, or contract penalties.
Common Misconceptions
GFP is free to use without responsibility.
Contractors are fully accountable for the care, control, and proper use of GFP. Loss or damage may result in financial liability.
GFP can be used on other projects.
GFP is restricted to the specific contract it supports. Using it on other projects without authorization violates contract terms and federal regulations.
The government always maintains GFP.
Day-to-day custody and protection are usually the contractor's responsibility once GFP is delivered or made accessible under the contract.
Frequently Asked Questions
What types of items qualify as Government Furnished Property?
GFP can include equipment, materials, special tooling, test equipment, or access to government-owned facilities.
Who is responsible for GFP while under contract?
The contractor is typically responsible for safeguarding, maintaining, and tracking GFP during contract performance.
How is GFP documented in a contract?
GFP is usually identified in contract clauses, attachments, or property listings detailing quantity, condition, and use.
What happens to GFP after the contract ends?
GFP is returned, transferred, disposed of, or retained based on government direction at contract closeout.
Related Government Contracting Topics
Government Property: A broader category that includes both Government Furnished Property and contractor-acquired property used in the performance of a federal contract.
Contractor-Acquired Property: Property purchased by the contractor using contract funds for the purpose of contract performance, which may also become government property.
Property Management System: The processes, procedures, and systems contractors use to track, control, and report on government property in their possession.
FAR Part 45: The federal regulations governing government property management, including contractor responsibilities for GFP accountability and reporting.
Contract Closeout: The formal procedures for resolving all contractual obligations at contract completion, including the disposition of any remaining GFP.
Strategic Importance
Government Furnished Property plays a significant role in how federal contracts are structured and executed. When properly managed, GFP enables contractors to perform efficiently while protecting sensitive government assets.
For contractors, establishing robust property management systems, maintaining accurate records, and understanding FAR Part 45 obligations are essential to avoiding liability, passing audits, and maintaining strong past performance ratings in the federal marketplace.