[Code of Federal Regulations]
[Title 48, Volume 1]
[Revised as of October 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 48CFR46]

[Page 856]
 
            TITLE 48--FEDERAL ACQUISITION REGULATIONS SYSTEM
 
                CHAPTER 1--FEDERAL ACQUISITION REGULATION
 
PART 46_QUALITY ASSURANCE--Table of Contents
 
                         Subpart 46.5_Acceptance
 
Sec.  46.505  Transfer of title and risk of loss.

    (a) Title to supplies shall pass to the Government upon formal 
acceptance, regardless of when or where the Government takes physical 
possession, unless the contract specifically provides for earlier 
passage of title.
    (b) Unless the contract specifically provides otherwise, risk of 
loss of or damage to supplies shall remain with the contractor until, 
and shall pass to the Government upon--
    (1) Delivery of the supplies to a carrier if transportation is 
f.o.b. origin; or
    (2) Acceptance by the Government or delivery of the supplies to the 
Government at the destination specified in the contract, whichever is 
later, if transportation is f.o.b. destination.
    (c) Paragraph (b) above shall not apply to supplies that so fail to 
conform to contract requirements as to give a right of rejection. The 
risk of loss of or damage to such nonconforming supplies remains with 
the contractor until cure or acceptance. After cure or acceptance, 
paragraph (b) above shall apply.
    (d) Under paragraph (b) above, the contractor shall not be liable 
for loss of or damage to supplies caused by the negligence of officers, 
agents, or employees of the Government acting within the scope of their 
employment.
    (e) The policy expressed in (a) through (d) above is specified in 
the clause at 52.246-16, Responsibility for Supplies, which is 
prescribed in 46.316.