Government Furnished Assets

This page is an extract from the full topic guidance on Government Furnished Equipment (GFA) [72KB PDF]. It details any Constraints associated with GFA, provides a summary of the Authoritative Guidance and lists any essential reading, further reading or associated documents.

If you have any queries on this topic, please contact the Sponsor by email: DGDC CS-2B-1.

Constraints

None.

Authoritative Guidance Summary

Government Furnished Assets (GFA) are Ministry of Defence (MOD) owned assets supplied to Industry in support of MOD contracts. Performance risk in that respect rests with MOD.

Requirements for GFA should be kept to a minimum and must be identified in the Request for Contract Action (RCA). Written confirmation of availability must be obtained before an Invitation to Tender (ITT) is issued. Any subsequent issue of GFA must be both timely and of the required quality and standard. Failure to honour a contractual obligation to provide GFA may constitute a breach of contract. The contract should entitle MOD to an extension of time where GFA delivery is delayed by a force majeure event or by an act or omission of the contractor. Specific risk mitigation measures are required where GFA is to be supplied under a Foreign Military Sales (FMS) case with the United States of America Department of Defense (US DOD).

Joint Tools and Test Equipment (JTTE) is plant and equipment, jigs, tools, gauges, test equipment, moulds and dies required for production. The RCA should identify whether the tenderer may need to procure JTTE.

All GFA must be clearly defined in the contract. DEFCON 694 (Accounting for Property of the Authority) [40KB PDF] and DEFSTAN 05-99 (Managing Government Furnished Equipment in Industry) [PDF] External link to Internet content govern the management and accounting information in respect of the following elements of Government property and must be included in all contracts that involve the provision of such Government property. The only exception is property vested in MOD under clause 1 of DEFCON 649 (Vesting) [14KB PDF].

If MOD funds the procurement of JTTE specific to contract, the contract must include DEFCON 23 (Special Jigs, Tooling and Test Equipment) where such JTTE is defined as Special Jigs, Tooling and Test Equipment (STTE). It should be noted that STTE only becomes issued property in certain circumstances.

DEFCON 611 (Issued Property) sets out the contractor's liability for loss or damage to issued property and is addressed under the Excluding/Limiting Liability Against Risks topic.

To assist in the assessment of tenders utilising GFA commercial officers must ensure that the ITT requires tenderers to identify such costs separately. DEFCON 694 (Accounting for Property of the Authority) does not apply to Government property issued prior to its introduction. Questions on legacy holdings should be referred to the RCA 'originator' or the appropriate Top Level Budget focal point.

Essential Reading

Limiting/Excluding Liability Against Risk topic

Company Financial Status topic

A Guide For Integrated Project Teams And Contractors Working In Support Of British Forces In Germany [790KB PDF]

Force Majeure topic

Government Furnished Assets

Constraints

Authoritative Guidance Summary

Essential Reading

Further Reading

Change History