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Clauses · FAR · Administration and definitions

FAR 52.245-1 Government Property

Does the regulation require it to flow down?

Yes

Every subcontract under which Government property is acquired or furnished for performance; (f)(1)(v) requires identifying the furnished items

Form
substance ((b)(3): 'requirements of this clause')
Reaches
all tiers

Checked against acquisition.gov on 2026-08-04 · edition Sep 2021 · base v0.9.3 Read the text ↗

What it makes you produce

4 items for your checklist, slowest first.

  1. A program you have to be running

    You are either running it or you are not, and what the prime asks for is the date it started.

    • A system of internal controls that manages the Government property in your shop — control, use, preservation, protection, repair and maintenance

      FAR 52.245-1(b)(1)

  2. Something you write3

    Days to weeks, and nobody outside your company has to agree to it.

When it is used

Presence of Government property in the subcontract — a material condition, no dollar threshold (prescription FAR 45.107: cost-type/T&M always; fixed-price when there is GFP; commercial when GFP > SAT).

Read closely

(b)(3) puts the requirements of the clause into any of your own orders under which Government property is acquired or furnished, and (f)(1)(v), Subcontractor control, is the paragraph behind that: subcontracts that clearly identify the items to be provided and any restrictions or limitations on their use. The Government carries the risk of loss until it withdraws that for demonstrated mismanagement, and from then on losses come out of your pocket.

Alternates

  • Alt I · APR 2012

    FAR 45.107(a)(2).

    Alt I substitutes paragraph (h)(1) and moves the full risk of loss onto the contractor from delivery, excepting normal wear and property properly consumed; it changes who pays for a loss rather than what the property system produces, and seven of the prime templates we have read impose it.

  • Alt II · APR 2012

    FAR 45.107(a)(3).

    Alt II substitutes paragraph (e)(3) so title to contractor-acquired property under $5,000 may vest in you on acquisition with the buyer's approval, barring depreciation charges on later Government work; it moves who owns the item, and the records, inventories and loss reports are the basic clause's.

The 23 templates that name it, with the line
76CORPDOC 2A — FAR/DFARS Flowdown Provisions for Commercial Products/Services under a DoD Prime ContractLockheed Martinline 230143CORPDOC 3A — FAR/DFARS Flowdown Provisions for Fixed Price Non-Commercial Items under a DoD Prime ContractLockheed Martinline 276155CORPDOC 4A — FAR/DFARS Flowdown Provisions for Cost-Reimbursement/T&M Subcontracts under a DoD Prime ContractLockheed Martinline 307233RTX Flowdown of U.S. Government Contract Clauses Under U.S. Government ContractsRTXline 240105Raytheon TC-002 — Supplement 1: Government Contract Provisions from the FARRTXline 11712Boeing GP4 — General Provisions, Cost Reimbursement Contract under U.S. Government Prime ContractBoeingline 7294Boeing GP7 — General Provisions, Fixed Price Goods Contract under U.S. Government Prime ContractBoeingline 7494Boeing GP8 — General Provisions, Fixed Price Services Contract under U.S. Government Prime ContractBoeingline 7356Boeing GP9 — General Provisions, Labor Hour/T&M Contract under U.S. Government Prime ContractBoeingline 799166Northrop Grumman CTM-P-ST-001 — U.S. Government Firm Fixed Price Order (Not for Commercial Products and Services)Northrop Grummanline 48169Northrop Grumman CTM-P-ST-002 — U.S. Government FFP or T&M Order for Commercial Products and ServicesNorthrop Grummanline 594166Northrop Grumman CTM-P-ST-003 — U.S. Government T&M Order (Not for Commercial Products and Services)Northrop Grummanline 458168Northrop Grumman CTM-P-ST-004 — U.S. Government Cost Reimbursement Order (Not for Commercial Products and Services)Northrop Grummanline 598255GD Mission Systems SCM-TMP-005 — General Provisions, Firm Fixed Price PO under U.S. Government Contract (Non-Commercial)General Dynamicsline 1159243GD Mission Systems SCM-TMP-048 — T&M Purchase Orders for Non-Commercial Items in Support of a U.S. Government ContractGeneral Dynamicsline 1164240L3Harris LGL-50.F1 — General T&C and Flowdown Clauses for Other Than Commercial Products/Services under a U.S. Government ContractL3Harrisline 414106L3Harris LGL-50.F2 — General T&C and Flowdown Clauses for Commercial Products/Services under a U.S. Government ContractL3Harrisline 41410BAE Systems Inc. USGOVGOODS — General Clauses for Subcontracts/Purchase Orders for Goods under a U.S. Government Prime ContractBAE Systemsline 1704273BAE Systems Inc. USGOVA — FAR/DFARS Flow Down Provisions for Subcontracts/Purchase Orders under a U.S. Government (DoD) Prime ContractBAE Systemsline 4116BAE Systems Inc. — General Clauses for Commercial Goods and/or Services under a U.S. Government DoD Prime ContractBAE Systemsline 1546107Honeywell — Supplemental Provisions Under Fixed Price U.S. Government Contracts for Commercial ItemsHoneywellline 45589AAR Government Services — C40 Purchase Order General Provisions, Non-Commercial Firm Fixed Price Items or ServicesAAR Corpline 3038178AAR Component Services NY — U.S. Government Contract FAR and DFARS Clauses Incorporated by ReferenceAAR Corpline 1604

Source: acquisition.gov, FAR 52.245-1 and FAR 45.107 (verified 2026-08-04)

This is research, not legal advice. It states what the regulation says about this clause and cites the paragraph behind it. It does not rule on your order, and it does not rule on whether a prime's markings are correct.