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There are two components to this.

1. The Federal Acquisition Regulation at 45.101 gives you the definition of Equipment: A tangible item that is functionally complete for its intended purpose, durable, nonexpendable, and needed for performance of a contract. Equipment is not intended for sale, and does not ordinarily lose its identity or become a component part of another article when put into use. Equipment does not include material, real property, special test equipment or special tooling.

2. The Federal Acquisition Regulation at FAR 45.101 gives you the definition of Government Furnished Property: Property in the possession of, or directly acquired by, the Government and subsequently furnished to the contractor for performance of a contract. Government furnished property includes, but is not limited to, spares and property furnished for repair, maintenance, overhaul, or modification. Government-furnished property also includes contractor acquired property if the contractor-acquired property is a deliverable under a cost contract when accepted by the Government for continued use under the contract.

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