Government-furnished Equipment

When the federal government hands you specialized equipment to complete a contract, that's Government-furnished Equipment (GFE). It matters because you're responsible for someone else's assets while delivering on your obligations—and the rules around custody, maintenance, and liability can get complicated fast.

How It Works

GFE shows up most often in contracts where the government already owns specialized tools, technology, or machinery that would be expensive or impractical for contractors to acquire themselves. Think of a DND contract where you're maintaining military vehicles using government diagnostic equipment, or an SSC engagement where you're provided with specific networking hardware to integrate into existing federal systems. The equipment stays government property. You just get to use it.

According to the Government of Canada Supply Manual, the contract will spell out exactly what equipment is being provided, the condition it's in when you receive it, and what you're expected to do with it. PSPC typically includes detailed schedules listing each item, along with serial numbers and any known defects. Your obligations usually cover proper storage, routine maintenance, and returning everything in similar condition—normal wear and tear excepted.

In practice, the arrangement shifts some financial risk away from contractors while keeping the government in control of valuable or sensitive assets. You're not investing capital in equipment you might only need for one project. The catch is you're also not free to use it however you want. The contract will restrict use to the specific work covered by the agreement, and you'll need to track and account for the equipment throughout the contract period. Loss or damage outside normal use? That's on you, and the financial consequences can be significant.

Key Considerations

• Condition documentation is everything. When you take possession of GFE, document its condition thoroughly with photos and written records. Disagreements about pre-existing damage at contract end are common and entirely avoidable with good intake documentation.

• Insurance and liability clauses vary widely. Some contracts require you to insure GFE at replacement value; others leave risk with the government. Read the general conditions carefully to understand where your liability starts and ends.

• Maintenance responsibilities aren't always obvious. You might be responsible only for basic care, or the contract might require you to perform and pay for significant maintenance. Budget accordingly when pricing your bid.

• Return timelines are strict. Missing the equipment return deadline can trigger penalties or extend your contract obligations. Plan for decommissioning, cleaning, and logistics well before the end date.

Related Terms

You'll often see GFE discussed alongside Crown Assets, Contract Security Requirements, and Material Management provisions. Government-furnished Property is the broader category that includes not just equipment but also materials and facilities.

Sources

• Government of Canada Supply Manual - Official federal procurement policy and procedures

• Canada Buys - Procurement Portal - Federal government procurement information and opportunities

• Buy and Sell - Federal government tender opportunities

Bottom line: GFE can make complex contracts more accessible to smaller bidders, but treat the equipment with the same care you'd give your own expensive assets. The government tracks this stuff.