Common use of Fixed Price Contracts Clause in Contracts

Fixed Price Contracts. (i) All Government-furnished property and all property acquired by the Contractor, title to which vests in the Government under this paragraph (collectively referred to as “Government property”), are subject to the provisions of this clause. (ii) Title vests in the Government for all property acquired or fabricated by the Contractor in accordance with the financing provisions or other specific requirements for passage of title in the contract. Under fixed price type contracts, in the absence of financing provisions or other specific requirements for passage of title in the contract, the Contractor retains title to all property acquired by the Contractor for use on the contract, except for property identified as a deliverable end item. If a deliverable item is to be retained by the Contractor for use after inspection and acceptance by the Government, it shall be made accountable to the contract through a contract modification listing the item as Government-furnished property. (iii) If this contract contains a provision directing the Contractor to purchase property for which the Government will reimburse the Contractor as a direct item of cost under this contract— (A) Title to property purchased from a vendor shall pass to and vest in the Government upon the vendor’s delivery of such property; and (B) Title to all other property shall pass to and vest in the Government upon— (1) Issuance of the property for use in contract performance; (2) Commencement of processing of the property or its use in contract performance; or (3) Reimbursement of the cost of the property by the Government, whichever occurs first.