Frequently Asked Questions

What are the institution’s responsibilities for having government property?

An institution having government titled property is responsible to protect, preserve, account for, control and use the government titled property for the intended purpose for which it was provided.

How should custodial property record for government property be maintained?

The institution should maintain the custodial property record of government titled property in their possession using sound business practices which have been approved by the cognizant ONR property administrator.

Must an institution's property procedures be in writing?

Not necessarily, however property procedures must be based on sound business practices (for the type of effort that institution is performing), pose no undue risk to the government, and formally be approved in writing by the cognizant ONR property administrator.

How often should physical inventories of government titled property be performed?

Physical inventories should be performed as often as is needed to ensure the proper control, protection, preservation and maintenance of government titled property. The frequency of inventory should be determined using sound business practices, giving consideration as to the type and criticality of the property in the Institution’s custody. The government property should, in no case, be physically inventoried any less frequently than the Institution's titled property. The exception to this rule is government titled property under certain grants and cooperative agreements that, due to the requirements of OMB Circular A-110, require that physical inventories of government titled property be performed at least once every two years.

What is a Compliant or Non-Compliant Property Control System?

The terms Compliant or Non-Compliant are used to describe the status of an Institution's property control system. A compliant system has been determined (usually via PCSA) by the cognizant property administrator (PA) to pose no undue risk to government property under the Institution’s control. A non-compliant system has been determined by to have a material weakness and poses a risk to government property in the custody of the institution. If a system is found to be Non-Compliant, the institution must take corrective actions in order for their property control system to be returned to a Compliant status.

What is a Compliant or Non-Compliant Property Control System?

A Non-Compliant rating is a determination made by the cognizant ONR property administrator usually after the performance of a PCSA. Some of the causes for Non-Compliant ratings are as follows:

  • Open and repeat findings from previous PCSAs
  • Untimely reporting of lost, damaged, destroyed or stolen government titled property
  • Non-reporting of government titled property
  • Misuse of government titled property
  • Failure to perform or reconcile physical inventories

Must government titled property below my capitalization level be reported?

Yes, government titled property is government titled property, regardless of dollar value or an institution's capitalization level and must be reported in accordance with the requirements of the award under which it is applicable.

What is ALT II of the Government Property Clause?

ALT II refers to Alternate II of the property clause at FAR 52.245-1 (Cost Reimbursable, Time and Material or Labor Hour Contracts). It gives the institution title (upon acquisition) for items that were acquired with prior approval of the government and have an acquisition value of less than $5,000.

Can an institution obtain government property from GSA or the DRMO?

Yes, provided the institution can show that the property is beneficial for the performance of an award. Obtaining government property from GSA or the DRMO must be approved in advance by the ONR property administrator.  Needs for such government property will be reviewed and approved on a case-by-case basis.

Who should I contact if I have questions about government property?

You can contact ONR ESRB to discuss the above or any other areas of Government Property Administration.

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