GFE

GFE is a subset of Government-Furnished Property (GFP), which is the broader category covering anything the government provides to a contractor. Understanding the distinctions matters for risk management and contract compliance.

Key distinctions:

• GFE (Government-Furnished Equipment) — Tangible items with a longer useful life: vehicles, computers, machinery, test equipment, weapons systems components.
• GFM (Government-Furnished Material) — Raw materials, components, or supplies consumed during performance (e.g., fuel, hardware, chemicals).
• GFP (Government-Furnished Property) — The umbrella term covering both GFE and GFM, as well as real property and intellectual property.

Contractor responsibilities under FAR Part 45:

• Maintain a property management system that meets government standards
• Report loss, damage, or destruction of GFE — contractors can be held financially liable
• Conduct periodic physical inventories and reconcile records
• Return or properly dispose of GFE at contract completion

Risk considerations:

• Before accepting GFE, inspect it for condition and document any pre-existing damage in writing
• Confirm the government's liability provisions — some contracts limit contractor liability for GFE loss to cases of negligence or willful misconduct
• GFE on your premises may require insurance riders or facility security clearances

The Contracting Officer's Representative (COR) typically oversees GFE compliance and can flag discrepancies that affect contract performance evaluations and CPARS ratings.