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Clauses · FAR · Government property

FAR 52.245-2 Government Property (Installation Operation Services)

Does the regulation require it to flow down?

No

No flow-down paragraph in the clause (it runs (a) through (e), none addressing subcontracts) and none in FAR 45.107. Primes flow it down when they push an on-base services task to a sub, because the prime holds Government property accountability and needs the as-is, replace-at-your-expense term to sit with whoever actually operates the equipment.

A clause can reach your subcontract without a mandate. Once it is in your document, it is a contract term all the same. The missing mandate is a fact about the regulation. It is not a ruling on your order.

Checked against acquisition.gov on 2026-08-05 · edition APR 2012 · base v0.9.3 Read the text ↗

What it makes you produce

One item for your checklist.

  1. Nothing to send now

    It does not hold the order. It decides what money moves later — what you can claim, what can be claimed from you, and what can be held back — and none of that changes after signature.

    • The cost of replacing the listed Government property out of your own pocket if it is lost or stops being usable — you take title to the replacement and still owe the same performance

      FAR 52.245-2(b)

When it is used

FAR 45.107(b): 'The contracting officer shall also insert the clause at 52.245-2, Government Property (Installation Operation Services), in fixed-price service contracts to be performed on a Government installation when Government-furnished property will be provided for initial provisioning only and the Government is not responsible for repair or replacement.' Four conditions, all required: fixed price, services, performed on a Government installation, and GFP furnished for initial provisioning only. No dollar threshold. It never stands alone — paragraph (d) makes the Government Property clause (52.245-1, already in the base) govern everything this clause does not modify, and 45.107(c) puts 52.245-9, Use and Charges, alongside 52.245-1. L3Harris's template states the condition correctly; the RTX list carries the bare number with no condition, which is where matrices go wrong.

Read closely

(a) hands the property over as-is, where-is with no warranty of suitability for use and an opportunity to inspect it in the solicitation, so the inspection is the only chance to size what (b) exposes. Paragraph (e) is the list of what is being taken on and is the whole measure of that exposure — a blank or a to-be-determined there turns a bounded risk into an open one. (c) abandons unserviceable and scrap property to you, with removal and disposal at your expense once the contracting officer is notified, and (d) leaves everything this clause does not modify to the Government Property clause.

The 2 templates that name it, with the line

Source: acquisition.gov, FAR 52.245-2 and FAR 45.107 (verified 2026-08-05)

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.