Government-furnished Equipment (GFE)

Government-furnished Equipment, often shortened to GFE, is equipment that a government owns and makes available to a contractor so the contractor can perform a contract. The contractor uses the equipment but does not buy it as part of the deal, and it is not the product the government is ordering.

The term is used in Canadian federal procurement and in allied defence contracting, most visibly in the United States. Canadian definitions appear in the Supply Manual glossary on CanadaBuys and in Shared Services Canada solicitations. Because the term carries specific ownership and accountability consequences, suppliers should read it as a defined concept rather than a casual label.

How Canadian sources define Government furnished equipment

The Supply Manual glossary defines Government furnished equipment as equipment supplied by Canada to be used in the production process, for example tooling, jigs, dies and production equipment. The same glossary links the term to related entries such as special production tooling, special test equipment and production assets.

A Shared Services Canada Invitation to Qualify for physical infrastructure equipment and services under PISA 2.0 gives a shorter definition. It describes GFE as equipment that is owned by the government and delivered to, or made available to, the suppliers. The PISA 2.0 ITQ places the emphasis on ownership and on how suppliers receive the equipment.

The U.S. regulatory definition behind the term

United States defence regulations give the most detailed formal wording. Under 32 CFR 273.12, Government-furnished equipment is an item of special tooling, special test equipment, or equipment, in the possession of or directly acquired by the Government and subsequently furnished to the contractor for the performance of a contract.

The Federal Acquisition Regulation approaches the idea through Government-furnished property, defined in FAR Subpart 45.1 as property in the possession of, or directly acquired by, the Government and subsequently furnished to the contractor. FAR defines equipment as a tangible item that is functionally complete for its intended purpose, durable, nonexpendable and needed for contract performance. Equipment is not intended for sale and does not ordinarily lose its identity or become a component of another article when put into use. Another U.S. rule, 32 CFR 170.4, states that GFE has the same meaning as government-furnished property in FAR 45.101.

How GFE differs from material and other property

GFE is not the same as Government-furnished material. In 32 CFR 273.3, material is property provided to be incorporated into or attached to a deliverable end item, or to be consumed or expended in performing the contract. Equipment is meant for continued use and stays identifiable as government property.

• Government-furnished equipment: government-owned items such as tooling and machinery, furnished for use and not consumed.
• Government-furnished material: components, parts and supplies that are incorporated into deliverables or used up.
• Contractor-acquired property: property the contractor acquires or fabricates for the contract and to which the government holds title.
• Government issue: the broader Canadian term for machinery, equipment, materials, parts and components furnished or acquired by or for the government. Government furnished equipment is a subset of it.

GFE in export controls and allied contracting

GFE also appears in export rules. The U.S. Bureau of Industry and Security applies the FAR definition of government-furnished property to Government Furnished Equipment in paragraph (b)(2)(iii)(E) of License Exception GOV, as explained in its License Exception GOV FAQs. Canadian suppliers whose work touches U.S. defence contracts should therefore expect cross-border transfers of GFE to be regulated.

The United Kingdom Ministry of Defence uses a parallel term, Government Furnished Assets, for any equipment, information or resources issued or made available to a contractor in connection with a contract. The underlying idea is common across allied defence procurement.

What GFE means for a supplier bidding on Canadian public contracts

When a solicitation refers to GFE, treat it as government-owned equipment that you will use but not own. Check the solicitation glossary for the exact definition, and confirm what equipment will be supplied and where it will be delivered or made available.

Plan to keep GFE separate from your own assets and from consumable materials in your records. Federal oversight pays attention to this category: a Department of National Defence audit examined government-furnished equipment issued to contractors. If your contract or subcontract also falls under U.S. defence requirements, check how the U.S. definitions and export rules apply to the equipment.