CFCM Government Property Management

Question 1

Under FAR Part 45, 'Government-Furnished Property' (GFP) is best defined as:

Accepted Answer

Property in the possession of, or acquired directly by, the government and subsequently furnished to a contractor for contract performance

Answer

FAR 45.101 defines Government-Furnished Property as property in the possession of, or acquired directly by, the government and then provided to the contractor. This distinguishes GFP from contractor-acquired property (CAP), which is purchased by the contractor using contract funds but title vests in the government.

Question 2

FAR 52.245-1 (Government Property) is the primary clause governing contractor management of government property. Under this clause, the contractor is generally responsible for:

Accepted Answer

Establishing and maintaining a property management system and accounting for all government property in its possession

Answer

FAR 52.245-1 requires contractors to establish and maintain a property management system that provides for proper use, maintenance, inventory, and record-keeping for all government property. The contractor must account for property throughout the contract and notify the government of any loss, damage, or destruction.

Question 3

When government property is lost, damaged, or destroyed while in the contractor's custody, the contractor's financial liability is generally:

Accepted Answer

The acquisition cost (or an equitable adjustment) when loss results from the contractor's fault or negligence

Answer

Under FAR 45.104, a contractor's liability for loss, damage, or destruction of government property is generally limited to the acquisition cost when the loss results from the contractor's fault or negligence. If the loss occurs without contractor fault, the government typically bears the risk.

Question 4

'Plant clearance' in the context of government property management refers to:

Accepted Answer

The process of screening, redistributing, or disposing of contractor-held government property after contract completion or termination

Answer

Plant clearance is the government process of determining the disposition of government property remaining in a contractor's plant after a contract is completed, terminated, or otherwise concluded. The Plant Clearance Officer (PLCO) oversees screening for reutilization, transfer, donation, or sale of excess property.

Question 5

Under FAR 45.402, which party generally holds title to property acquired by a contractor using funds from a cost-reimbursement contract?

Accepted Answer

The government, as the entity that ultimately funded the acquisition

Answer

Under FAR 45.402, title to property acquired by a contractor with government funds (contractor-acquired property on cost-reimbursement contracts) vests in the government. Even though the contractor made the purchase, the government funded it and retains ownership, requiring the contractor to manage it as government property.

(CFCM) Certified Federal Contracts Manager Practice Test

(CFCM) Certified Federal Contracts Manager Practice Test

CFCM Government Property Management