GFM
Government Furnished Material
Acronyms & AbbreviationsDefinition
Government Furnished Material (GFM) refers to property, equipment, materials, or information that the government provides to the contractor for use in performing a contract. The contractor does not purchase GFM: the government supplies it and retains ownership.
GFM (also called GFE: Government Furnished Equipment, or GFP: Government Furnished Property) is common in defense and construction contracts where the government already owns specialized equipment, facilities, or materials needed for the work.
Examples:
- Military vehicles provided to a maintenance contractor for repair
- Government-owned IT systems provided to a software developer for integration
- Raw materials or components supplied for manufacturing
- Office space or laboratory facilities at a government installation
Contractor responsibilities: You must account for, maintain, and return all GFM under a property management system that meets FAR Part 45 and the Government Property clause (FAR 52.245-1). Who bears the risk of loss depends on the contract type: under fixed-price contracts the contractor generally assumes the risk of loss, damage, or theft of government property; under cost-reimbursement contracts the government generally assumes it, except where the loss results from the contractor's willful misconduct or lack of good faith, or a failure of its property management practices. Proposals should describe your property management system and how you'll track GFM.
In pricing, exclude the cost of GFM from your proposal, but include the labor and overhead to receive, store, maintain, and account for it.
GFM vs GFE vs GFP. Government Furnished Property (GFP) is the umbrella term in the FAR for anything the government provides. Government Furnished Equipment (GFE) is the durable equipment subset (vehicles, test sets, computers). Government Furnished Material (GFM) is the consumable or incorporated subset (raw stock, parts, components that become part of the deliverable). Solicitations often use the three loosely; the property clause treats them under the same accountability rules.
Other meanings of GFM. Outside contracting, GFM is a common abbreviation for GoFundMe in online fundraising, and appears in other industries with unrelated meanings. In a government solicitation, a contract, or a statement of work, GFM means Government Furnished Material.
Frequently Asked Questions
What does GFM mean in government contracting?
GFM stands for Government Furnished Material: material the government supplies to a contractor for use in performing a contract, at no cost to the contractor, with the government retaining ownership. The contractor must track, protect, and account for it, and return or consume it as the contract directs.
What is the difference between GFM, GFE, and GFP?
GFP (Government Furnished Property) is the umbrella term. GFE (Government Furnished Equipment) is durable equipment such as vehicles or test instruments. GFM (Government Furnished Material) is consumable or incorporated material such as parts and raw stock. All three fall under the same FAR Part 45 accountability rules.
Who is responsible if GFM is lost or damaged?
It depends on the contract type under the Government Property clause, FAR 52.245-1. Under fixed-price contracts the contractor generally bears the risk of loss. Under cost-reimbursement contracts the government generally bears it, except for losses caused by the contractor's willful misconduct, lack of good faith, or failure to maintain an adequate property management system.
How do you price a proposal that includes GFM?
Leave the material itself out of your price, because the government is supplying it. Include the labor, storage, handling, inspection, and administrative effort to receive, track, maintain, and account for it, and state clearly which items you assume will be government furnished so a late change becomes a priced modification rather than an absorbed cost.
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