GFP (Government-Furnished Property)

All property in the possession of or acquired by the government and provided to a contractor, including equipment, material, and facilities.

Full Definition

Government-Furnished Property (GFP) is the umbrella term encompassing all property owned by the government and provided to contractors for contract performance. GFP includes four subcategories: Government-Furnished Equipment (GFE), Government-Furnished Material (GFM — raw materials and consumables), Government-Furnished Information (GFI — technical data, drawings, and specifications), and government-furnished facilities. FAR Part 45 establishes the regulatory framework, and the clause at FAR 52.245-1 (Government Property) is incorporated into virtually every contract involving GFP. The Defense Contract Management Agency (DCMA) conducts property management system audits on contractors holding significant GFP. Contractors must maintain records in the GFP module of the Procurement Integrated Enterprise Environment (PIEE) and report GFP data through the Item Unique Identification (IUID) Registry for items valued over $5,000.

Why It Matters

GFP management is one of the most scrutinized contract compliance areas, particularly on DoD contracts. Contractors receiving GFP must establish and maintain a property management system that includes written procedures, trained property administrators, physical inventories, maintenance schedules, and loss/damage/destruction reporting. DCMA evaluates contractor property systems using the criteria in DFARS 252.245-7003 — a disapproved system can result in payment withholds of up to 5% of progress payments. For small businesses, the administrative burden of GFP management is often underestimated. Before bidding on GFP-intensive contracts, ensure you have the internal processes and personnel to handle property accountability. Consider hiring or designating a certified property professional. The government's GFP attachments in solicitations may list thousands of items — review them carefully for missing serial numbers or outdated condition codes.

Example

A defense contractor performing aircraft maintenance receives GFP valued at $8.5 million including specialized test equipment (GFE), titanium alloy raw materials (GFM), proprietary technical manuals (GFI), and access to a government-owned hangar facility. They employ a full-time property administrator who maintains the PIEE records, conducts semiannual physical inventories, tags all items with IUID labels, and submits the annual GFP report. During a DCMA property system audit, the contractor demonstrates 99.8% inventory accuracy and receives an approved system determination.

Related Contracts

Browse GFP (Government-Furnished Property) contracts →