PGI 245.402-71

(1) A line item is required for the delivery of CAP. This includes property delivered to the Government as part of a sustainment contract or similar arrangement where the Government is contracting for a level of performance which will require the contractor to deliver items in support of that performance.

(2) The contractual transfer of accountability of CAP from one contract to another is prohibited. Only upon delivery under a line item can property be transferred to other contracts as Government-furnished property (GFP) (see PGI 245.103-71 ).

(3) Upon delivery and acceptance by the Government, and when retained by the contractor for use under a contract, the delivered CAP items become GFP and must be added to the contract GFP attachment (see PGI 245.103-72 ).

(4) Contractor-acquired property not anticipated at time of contract award.

(i) For CAP not anticipated at the time of contract award, or not otherwise specified for delivery on an existing line item, the contracting officer will direct delivery of the CAP items to the Government on a not separately priced (NSP) line item (e.g. contract line item, exhibit line item, etc.). Such items are typically identified through—

(A) Plant clearance in accordance with the clause at DFARS 252.245-7005, Management and Reporting of Government Property.

(B) Inventory reports provided by the contractor in accordance with FAR clause 52.245-1; or

(C) Other reporting requirements, such as CDRLs, specified in the contract.

(ii) Following the procedures above, the contracting officer will direct that CAP on a line item be delivered as soon as practicable after the CAP item is identified, if—

(A) The value of the item meets or exceeds the capitalization threshold as identified in the memorandum issued by the Under Secretary of War (USW) on 18 May 2026, entitled “Consolidated Department of War Capitalization Thresholds for Financial Statements-Real Property and General Equipment” (available at https://comptroller.war.gov/Portals/45/Documents/fmr/current/04/Consolidated_DoW_Capitalization_Thresholds_for_Financial_Statement_Real_Property_and_General_Equipment_FPM-26-04.pdf) or;

(B) The item is special tooling, special test equipment, or equipment designated for preservation and storage under a major defense acquisition program (reference: section 815 of the National Defense Authorization Act for Fiscal Year 2009 (Pub. L. 110-417)).

(iii) Each NSP line item of CAP to be delivered to the Government must include the following information:

(A) Line item number.

(B) Item description.

(C) Either a National Stock Number, manufacturers CAGE and part number, or a model number.

(D) Quantity.

(E) Unit of measure.

(F) Date placed in service by the contractor.