Although less than 30% of warehouses are considered to be efficient, that low percentage is not acceptable for government contracts. Government contractors are subject to strict regulations when it comes to managing and tracking government-owned property. For these contractors, using comprehensive inventory tracking software is vital. But before you begin using a government inventory system, it will be helpful to know a bit more about government furnished property and equipment, as well as the level of compliance that is expected within the scope of government contracts.
What Is Government Furnished Property?
Government furnished property is a bit of an umbrella term. It refers to property used by a contractor during a DoD government contract. Government furnished property can be designated as either equipment or material.
- Government Furnished Equipment: GFE refers to tooling or equipment (including test equipment) that’s provided to a contractor for use during the project. It’s durable, not intended for sale, and has an expected service life of at least two years. In other words, it’s a complete entity, rather than one component.
- Government Furnished Material: GFM, on the other hand, are typically separate components or materials given to contractors to consume or expend during the course of a contract. For example, items like screws, nuts, bolts, washers, or raw metals can fall under this category. But these items lose their identity within the final product, meaning they are just one piece of the puzzle.
What Is Required For Government Furnished Equipment (GFE) And Property Compliance?
DoD contractors must create and maintain accurate records of all government furnished equipment and property of any value. These records must be kept in accordance with Federal Acquisition Regulations. These records must include:
- Name and description of property, as well as National Stock Number
- Quantity fabricated/received, issued, and on-hand
- Unit price and unit of measure
- Contract number or equivalent code
- Date of transaction and posting reference
What Is The Best Way To Track GFE?
The only acceptable way to create and maintain these records is with inventory tracking software. Government software solutions like these are required for a good reason: they are accurate and are intended for this exact purpose. That said, there are different types of government inventory tracking software available. Ideally, contractors should be using software from industry leaders who understand the challenges that come with tracking DoD contract property.
To find out more about how our software can improve the government contractor experience and help you maintain clearer records, contact ASTS today.