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  • Question

    If a natural disaster hit the government building they are working out of, electric surge, or water pipe breaks and the GFP is damaged or destroyed, who is responsible for replacing or fixing the equipment/material?


    Answer

    The following response is based solely on the question and background information provided. As we do not have the entire facts particular to your contract, program, and situation, we suggest you discuss with your contracting team, program manager and/or legal department as appropriate.

    The contract will contain terms and conditions other than a single clause such as FAR 52.245-2. (In fact, the contract MUST contain FAR 52.245-1 if 52.245-2 is present)

    However looking at FAR 52.245-2 in isolation, it is used when we intend to provide property listed in paragraph (e) for initial provisioning only. So only those items listed in paragraph (e) will fall under the terms of the clause.

    The clause in paragraph (b) states that the Government bears no responsibility for repair or replacement of any lost Government property. If any or all of the Government property is lost or becomes no longer usable, the Contractor shall be responsible for replacement of the property at Contractor expense. The Contractor shall have title to all replacement property and shall continue to be responsible for contract performance.

    The contractor still has 52.245-1 requirements to manage (control, use, preserve, protect, repair, and maintain) Government property in its possession as well as reporting of loss of Government property. Absent any other terms in the contracts, items not under FAR 52.245-2(e), will be handled under the limited risk of loss provisions of FAR 52.245-2(h), unless an exception in that subparagraph applies.

    When conducting the FAR 45.104(d) Property Loss investigation, ensure all contract terms and conditions are identified for each item of property loss.

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