[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: 48CFR47]

[Page 865]
 
            TITLE 48--FEDERAL ACQUISITION REGULATIONS SYSTEM
 
                CHAPTER 1--FEDERAL ACQUISITION REGULATION
 
PART 47_TRANSPORTATION--Table of Contents
 
                          Subpart 47.1_General
 
Sec.  47.102  Transportation insurance.

    (a) The Government generally (1) retains the risk of loss of and/or 
damage to its property that is not the legal liability of commercial 
carriers and (2) does not buy insurance coverage for its property in the 
possession of commercial carriers (40 U.S.C. 726). (See part 28, Bonds 
and Insurance.)
    (b) Under special circumstances the Government may, if such action 
is considered necessary and in the Government's interest, (1) buy 
insurance coverage for Government property or (2) require the carrier to 
(i) assume full responsibility for loss of or damage to the Government 
property in its possession and (ii) buy insurance to cover the carrier's 
assumed responsibility. The cost of this insurance to the carrier shall 
be part of the transportation cost. (The Secretary of the Treasury 
prescribes regulations regarding shipments of valuables in 31 CFR parts 
261 and 262.)
    (c)(1) If special circumstances dictate the need for the Government 
to buy insurance coverage, the contracting officer shall ascertain that 
(i) there is no statutory prohibition and (ii) funds for insurance are 
available.
    (2) The contracting officer shall document the need and 
authorization for insurance coverage in the contract file.