46.802
Definition
A "high-value item" is any contract end item costing over $100,000 per unit and specifically designated by the contracting officer, triggering special liability and handling requirements.
Overview
- FAR 46.802 provides the definition of "high-value item" for use within Subpart 46.8, which addresses contractor liability for loss or damage to government property. This definition is critical for determining when special rules and heightened liability may apply to certain contract end items.
Key Rules
- High-Value Item Criteria
- An item is considered a high-value item if it has a unit cost normally exceeding $100,000 and is specifically designated as such by the contracting officer.
- Examples of High-Value Items
- Typical examples include aircraft, engines, communication systems, computer systems, missiles, and ships, but the list is not exhaustive.
Responsibilities
- Contracting Officers: Must designate items as high-value when appropriate and ensure contractors are aware of this status.
- Contractors: Need to identify and treat designated high-value items with heightened care and comply with any additional requirements or liabilities.
- Agencies: Should provide oversight to ensure proper designation and handling of high-value items.
Practical Implications
- This definition clarifies which items are subject to stricter liability and property management rules, helping contractors and agencies manage risk and compliance. Misidentification or failure to designate high-value items can lead to compliance issues or increased liability exposure.