ASBCA No. 61709 – A Cautionary Tale for Subcontractors with Government Property

On June 24, 2021, the Armed Services Board of Contract Appeals (ASBCA) opinioned that Intellicheck, Inc., a subcontractor, did not have privity of contract or even an implied-in-fact contract with the Government to allow for the recovery of costs incurred by Intellicheck, Inc. to maintain and store Government property after the completion of a Task Order for the Navy. A tale as old as time, the Government lets years go by before taking action to dispose of its property being held by a subcontractor. Then finds a legal out for not paying the costs the Government caused to be incurred.

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Topics: Defense Contractors, DFARS Business Systems, Government Regulations, Government Property Management

Government Property and Subcontractor Control

We get lots of questions about Government property and how it should be handled with subcontractors. Remember, and it has been said over and over, the prime contractor is responsible for just about anything subcontractors do in support of a contract. And yes, that includes Government property requirements.

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Topics: Contracts Administration, Government Property Management

Government Property Disposition: What is Abandonment?

The term abandonment seems to be a hot topic within government property (GP) circles for both contractors and government procurement professionals. Many more contractors are requesting abandonment as a method of disposition. But exactly what is abandonment? When can it be used? And is it a last resort for the government?

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Topics: Contracts Administration, Defense Contractors, Government Property Management

Government Furnished Property Gotchas

Government furnished property can be a headache, even for the most seasoned contractor. It can include thousands of tiny parts, multi-million-dollar pieces of equipment or both – often all on one contract in an old dark government building. We have identified some common, and not-so-common, areas we see missing in contractor government property management plans.

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Topics: Contracts Administration, Defense Contractors, Government Property Management