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Contracts

Government Furnished Equipment(GFE)

Equipment provided by the government to the contractor for use in contract performance.

Overview

Government Furnished Equipment (GFE) is property the government provides to the contractor under the contract. The contractor uses GFE to perform the work but does not own it. Proper use, care, and return are contractually required.

Why It Matters in GovCon

GFE reduces contractor capital requirements but imposes accountability. Contractors must track GFE, use it only for contract purposes, and return or dispose of it per contract terms. Loss or damage can result in liability.

Key Details

  • Property Clause: FAR 52.245-1 (or alternate) governs government property.
  • Accountability: Contractors maintain property records and submit reports.
  • Care and Use: Contractors must protect and maintain GFE.
  • GFE vs. GFP: GFE is a subset of Government Furnished Property (GFP); GFP includes materials and facilities.

Related Terms

  • Government Furnished Property (GFP)
  • Government Property
  • FAR 52.245
  • Contractor Acquired Property

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