Subpart 46.8
Contractor Liability for Loss of or Damage to Property of the Government
Contractors are generally liable for loss or damage to government property in their possession unless the contract specifies otherwise, making it essential to understand and comply with liability clauses.
Overview
FAR Subpart 46.8 establishes the rules and responsibilities regarding contractor liability for loss of or damage to government property in the possession of contractors. It defines when and how contractors are held accountable for government property, outlines the policy framework, and prescribes the use of specific contract clauses to address liability. The subpart ensures that contractors understand their obligations to protect government assets and clarifies the circumstances under which they may be liable for loss, theft, or damage. It also provides definitions and applicability criteria to guide contracting officers and contractors in determining when these rules apply.
Key Rules
- Scope and Applicability
- The subpart applies to contracts where government property is provided to contractors, except as otherwise specified.
- Definition of Government Property
- Clarifies what constitutes government property for the purposes of liability.
- Policy on Contractor Liability
- Establishes that contractors are generally liable for loss or damage unless the contract provides otherwise, and details exceptions and limitations.
- Contract Clauses
- Requires inclusion of specific clauses in contracts to address liability for government property.
Responsibilities
- Contracting Officers: Must determine applicability, include appropriate clauses, and enforce policy on contractor liability.
- Contractors: Must safeguard government property, report loss or damage, and comply with liability provisions in the contract.
- Agencies: Oversee compliance and ensure proper administration of government property provisions.
Practical Implications
- This subpart protects government assets by holding contractors accountable for their care.
- It impacts daily operations by requiring contractors to implement controls and reporting for government property.
- Common pitfalls include failure to report incidents or misunderstanding the scope of liability.