Property Management Policy & Procedure Manual
Section 900: Sponsored Research and Federal Property
Subcontracts are predicated on the prime award, and a copy of the prime award is always attached to the subcontract agreement. The terms of the prime award flow down to the subcontractor. However, such terms are not automatic in the area of federally owned property.
In order to receive federally owned equipment a subcontractor must have an approved property system which includes procedures for the care and maintenance of the equipment. The subcontractor is required to adequately care for and maintain such property as required by federal regulations per OMB Uniform Guidance and Federal Acquisition Regulation (FAR) Part 45-Government Property. The subcontractor must assure that the equipment is used only as authorized by the contract. Equipment reports must be submitted to OSU for referral to the sponsoring agency, as required by the prime award and\or at contract closeout.
A subcontractor will assume full risk for loss, damage, or destruction of federal property in the subcontractor's possession or control except to the extent that the subcontract relieves the subcontractor from such liability. If there are unusual property requirements, they will be stated in a special conditions attachment to the subcontract. These will include title restrictions and reporting requirements.