COR Government-Furnished Property & Equipment 2 — Questions and Answers
Question 1: Which of the following is NOT a type of Government property as defined in FAR Part 45?
- Government-Furnished Material (GFM)
- Government-Furnished Equipment (GFE)
- Contractor-Acquired Property titled to the Government
- Contractor's commercial tooling used exclusively on a Government contract (Correct answer)
Correct answer: Contractor's commercial tooling used exclusively on a Government contract
Contractor-owned commercial tooling used on a Government contract remains contractor property and is not classified as Government property under FAR Part 45.
Question 2: A contractor's property management system must include all of the following elements EXCEPT:
- Acquisition and receiving controls
- Records of all Government property
- Contractor's profit and loss statements for GFP usage (Correct answer)
- Physical inventory procedures
Correct answer: Contractor's profit and loss statements for GFP usage
A contractor's property management system addresses acquisition, records, physical inventory, and other stewardship controls, but does not include financial profit/loss statements for GFP.
Question 3: How often must contractors typically conduct a physical inventory of Government property?
- Monthly
- Quarterly
- Annually or as required by contract terms (Correct answer)
- Only at contract closeout
Correct answer: Annually or as required by contract terms
FAR 52.245-1 requires contractors to conduct physical inventories of Government property at least annually or as otherwise specified in the contract.
Question 4: When the COR observes a contractor using Government-Furnished Equipment for work NOT covered under the contract, what should the COR do?
- Instruct the contractor to stop immediately and confiscate the equipment
- Document the observation and report it to the contracting officer for appropriate action (Correct answer)
- Issue a stop work order to the contractor
- Assess a financial penalty equal to the rental value of the equipment
Correct answer: Document the observation and report it to the contracting officer for appropriate action
The COR should document the unauthorized use and report it to the contracting officer, who has the authority to take corrective action.
Question 5: Government-Furnished Material (GFM) differs from Government-Furnished Equipment (GFE) primarily in that GFM is:
- More expensive than GFE
- Material intended to be incorporated into or consumed during contract performance, not reused after contract end (Correct answer)
- Always owned by a third-party agency
- Subject to different FAR clauses than GFE
Correct answer: Material intended to be incorporated into or consumed during contract performance, not reused after contract end
GFM is material consumed or incorporated into the end product during performance, while GFE is equipment expected to be returned or transferred after contract completion.
Question 6: Which agency is responsible for approving a contractor's property management system under DCSA/DCMA oversight?
- The program office that awarded the contract
- The COR assigned to the contract
- The Defense Contract Management Agency (DCMA) (Correct answer)
- The General Services Administration (GSA)
Correct answer: The Defense Contract Management Agency (DCMA)
DCMA is responsible for reviewing and approving contractor property management systems as part of their contract administration and oversight function.
Question 7: What is 'Contractor-Acquired Property' (CAP) in the context of Government contracts?
- Property the contractor owns and uses on its own projects
- Property acquired by the contractor under a contract in which the Government has title or will acquire title upon contract completion (Correct answer)
- Property the Government acquires from a contractor after default
- Commercial-off-the-shelf items purchased with appropriated funds
Correct answer: Property acquired by the contractor under a contract in which the Government has title or will acquire title upon contract completion
CAP is property purchased by a contractor using contract funds where title vests in the Government, making it subject to the same FAR Part 45 property management requirements as GFP.
COR Government-Furnished Property & Equipment 2
Which of the following is NOT a type of Government property as defined in FAR Part 45?