When the United States as the seller is shipping property to a buyer or when the United States has property shipped to it for purchase, the status of the property in transit is determined by the contract and the application of the Uniform Commercial Code. Cf. Heath v. United States, 209 F.2d 318 (9th Cir. 1954); Clark v. United States, 258 F. 437 (3d Cir. 1919). It should be noted, however, that section 641 also protects property "made or being made under contract for the United States." See this Manual at 1662. Therefore, theft of property made under contract for the United States is punishable under this section without regard to title or custody.
[cited in JM 9-66.200]