[Code of Federal Regulations]

[Title 48, Volume 1]

[Revised as of October 1, 2005]

From the U.S. Government Printing Office via GPO Access

[CITE: 48CFR45]



[Page 830-831]

 

            TITLE 48--FEDERAL ACQUISITION REGULATIONS SYSTEM

 

                CHAPTER 1--FEDERAL ACQUISITION REGULATION

 

PART 45_GOVERNMENT PROPERTY--Table of Contents

 

                          Subpart 45.1_General

 

45.103  Responsibility and liability for Government property.



    (a) Contractors are responsible and liable for Government property 

in their possession, unless otherwise provided by the contract.

    (b) Generally, Government contracts do not hold contractors liable 

for loss of or damage to Government property when the property is 

provided under--

    (1) Negotiated fixed-price contracts for which the contract price is 

not based upon an exception at 15.403-1;

    (2) Cost-reimbursement contracts;

    (3) Facilities contracts; or

    (4) Negotiated or sealed bid service contracts performed on a 

Government installation where the contracting officer determines that 

the contractor has little direct control over the Government property 

because it is located on a Government installation and is subject to 

accessibility by personnel other than the contractor's employees and 

that by placing the risk on the contractor, the cost of the contract 

would be substantially increased.

    (c) When justified by the circumstances, the contract may require 

the contractor to assume greater liability for loss of or damage to 

Government property than that contemplated by the Government property 

clauses or the clause at 52.245-8, Liability for the Facilities. For 

example, this may be the case when the contractor is using Government 

property primarily for commercial work rather than Government work.



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    (d) If the Government provides Government property directly to a 

subcontractor, the terms of paragraph (b) above shall apply to the 

subcontractor.

    (e) Subcontractors are liable for loss of or damage to Government 

property furnished through a prime contractor. However, if the prime 

contract is of a type listed in subparagraph (b)(1) or (2) above, the 

prime contractor may, after obtaining the contracting officer's consent, 

reduce the subcontractor's liability by including in the subcontract a 

clause similar to paragraph (g), Limited risk of loss, as provided in 

Alternate I of the clause at 52.245-2, Government Property (Fixed-Price 

Contracts), (for fixed-price contracts) or similar to the same paragraph 

of the clause at 52.245-5, Government Property (Cost-Reimbursement, 

Time-and-Material, or Labor-Hour Contracts) (for cost-reimbursement 

contracts). Before consenting to a clause that reduces the 

subcontractor's liability, the contracting officer should ensure that 

the Government's interests are sufficiently protected.

    (f) A prime contractor that provides Government property to a 

subcontractor shall not be relieved of any responsibility to the 

Government that the prime contractor may have under the terms of the 

prime contract.



[48 FR 42392, Sept. 19, 1983, as amended at 53 FR 663, Jan. 11, 1988; 60 

FR 48218, Sept. 18, 1995; 62 FR 51271, Sept. 30, 1997]