[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: 48CFR46]



[Page 871-872]

 

            TITLE 48--FEDERAL ACQUISITION REGULATIONS SYSTEM

 

                CHAPTER 1--FEDERAL ACQUISITION REGULATION

 

PART 46_QUALITY ASSURANCE--Table of Contents

 

                         Subpart 46.5_Acceptance

 

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.



[[Page 872]]



    (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.