46.800
Scope of subpart
FAR 46.800 sets the framework for limiting contractor liability for government property loss or damage occurring after acceptance due to defects or deficiencies in supplies or services.
Overview
- FAR 46.800 defines the scope of Subpart 46.8, which establishes the policies and procedures for limiting contractor liability when government property is lost or damaged after acceptance due to defects or deficiencies in delivered supplies or performed services. This section clarifies when and how contractor liability may be limited, focusing specifically on post-acceptance issues related to the quality of goods or services provided to the government.
Key Rules
- Limitation of Contractor Liability
- The subpart applies to situations where government property is lost or damaged after the government has accepted supplies or services, and the loss or damage is due to defects or deficiencies attributable to the contractor.
- Scope of Application
- The policies and procedures only address liability for post-acceptance loss or damage, not for issues occurring before acceptance or unrelated to defects/deficiencies.
Responsibilities
- Contracting Officers: Must apply these policies when determining contractor liability for post-acceptance loss or damage due to defects or deficiencies.
- Contractors: Should understand the circumstances under which their liability is limited and ensure compliance with quality requirements.
- Agencies: Oversee the application of these policies and ensure proper risk management regarding government property.
Practical Implications
- This section exists to clarify when contractors are responsible for government property loss or damage after acceptance, helping both parties manage risk and liability.
- It impacts contract drafting, risk allocation, and claims processes.
- Common pitfalls include misunderstanding the timing of acceptance and the nature of defects or deficiencies that trigger liability limitations.