PROCEDURES FOR CONTROL OF GOVERNMENT FURNISHED PROPERTY

ACQUISITION - All incoming items furnished by the Government will be checked to verify contractual 

authorization. Any items that are to be requested to fill contractual requirements will be so requested in 

a timely manner to minimize the use of emergency priorities.

RECEIVING - Upon receipt, the receiving document will be compared to the incoming items to verify 

correctness of quantity, condition, and description. If any deviation exists, or the item is unusable in any 

manner, the DCMA QAR will be promptly notified for disposition procedures. The items received shall 

be moved to a secure area. Upon receipt of any misdirected shipments, immediately notify the DCMA 

QAR and the Government Property Administrator. The misdirected shipment shall be stored in a 

secured area. The Government Bill of Lading and packing slip will be retained for the life of the 

contract, in a file maintained by ____________________________.

RECORDS - Records will be maintained by _____________________________, and will show the 

location of all Government furnished property at all times. Official Government property records shall 

include the part name, description, identification number, quantity, unit price and unit of measure, 

contract number, location, date of receipt and disposition. Records of receipt, movement, maintenance, 

inventory, and disposition will be kept by the above named individual. Any, and all, scrap will be 

marked as scrap by contract number and stored in the areas designated as Government furnished 

property. At the close of the contract that the scrap originated on, disposition instruction will be 

requested from the Government Property Administrator.

IDENTIFICATION - Upon receipt the contractor shall promptly identify and mark the property as 

Government property.

STORAGE AND MOVEMENT - The storage areas designated for Government furnished property will 

be secure and will provide protection from the weather. No item will be removed form storage without 

proper authorization from __________________________.

Any loss of damage during movement will be promptly reported to the DCMAO QAR and Government 

Property Administrator. Government furnished material will be controlled so that it will not be 

commingled with company owned material of a like or similar nature.

UTILIZATION and CONSUMPTION - No item of Government furnished property will be used on any 

contract other than the one for which the property was furnished. Material that is used in such a way as

to lose its identity by expending into an end item, will be accounted for by use of storeroom receipt and 

issue slips, or other such manner that will enable detection of unreasonable or unauthorized use of 

consumption.

MAINTENANCE - Maintenance of Government owned property shall be consistent with sound 

industrial practice and the terms of the contract. Where maintenance is required, by the contract the 

item will be so maintained and records of maintenance will be kept by 

______________________________. The contractor shall be responsible for the proper care, 

maintenance, and use of Government property in its possession or control from time of receipt until 

properly relieved of responsibility.

PHYSICAL INVENTORY - Unless the contract states otherwise, physical inventory of all Government 

property will be taken annually during the month of _________________. The physical inventory shall 

consist of physically locating, tagging and recording description, quantity, and locations of items 

inventoried. The physical inventory shall be performed by someone other than persons assigned 
responsibility of accountable records of the property. The inventory will be reconciled with accountable 

records, and any discrepancies reported promptly to the Government Property Administrator in writing.

DISPOSITION - Upon termination or completion of the contract, residual property will be stored in an 

area designated as "Government Property," inventoried and itemized on appropriate Inventory Schedules 

(SF 1400 series). The completed schedules will be submitted to the Plant Clearance Officer with a 

request for disposition instructions. The residual property will remain in the storage area until 

disposition instructions are received from the Plant Clearance Officer. Upon compliance with 

disposition instructions, advise the Government Property Administrator.

The Government Property Administrator shall be promptly notified in writing of any loss, theft, 

misappropriation, damage, or destruction of Government property as soon as facts become known. All 

correspondence in these matters shall be signed by the company official recognized as "Managerial 

Personnel" within the meaning of Government property clause of the contract.

REPORTS - All Government property on hand as of 30 September each year shall be reported to the 

Government Property Administrator on DD Form 1662 (DoD Property in the Custody of Contractors), 

and submitted in duplicate. The results shall include all property at the contractor's location and at all 

places of performance of the contract. This report will be prepared and submitted by _______________, 

to reach the Government Property Administrator no later than 20 October each year.

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Date

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Signature

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Typed Name and Title

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Company Name