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DOD/DARC RIN: 0750-AG94 Publication ID: Spring 2011 
Title: ●Responsibility and Liability for Government Property (DFARS Case 2010-D018) 
Abstract: This rule amends the Defense Federal Acquisition Regulation Supplement (DFARS) to extend the Government self-insurance policy for Government property provided under negotiated fixed-price contracts that are awarded on a basis other than submission of certified cost or pricing data. This rule proposes that DoD contractors not be held liable for loss of Government property under such contracts, and eliminates the use of Alternate I of the FAR clause at 52.245-1, Government Property. Use of Alternate I requires contractors to assume the risk and be responsible for loss of Government property. The basic premise of this case, that the Government should be self-insuring under contracts that provide Government property, is supported by the Government Accountability Office (GAO) policy contained in GAO publication, GAO-04-261SP Appropriations Law, and its decisions. Any impact of this rule on small entities is expected to be beneficial. The Government assuming the liability for loss of Government property under negotiated fixed-price contracts awarded on a basis other than submission of certified cost or pricing data should provide some relief for the small entities concerning costs to acquire insurance against risk of loss. 
Agency: Department of Defense(DOD)  Priority: Substantive, Nonsignificant 
RIN Status: First time published in the Unified Agenda Agenda Stage of Rulemaking: Final Rule Stage 
Major: No  Unfunded Mandates: No 
CFR Citation: 48 CFR ch 1     (To search for a specific CFR, visit the Code of Federal Regulations.)
Legal Authority: 41 USC 421   
Legal Deadline:  None
Action Date FR Cite
Interim Final Rule  06/00/2011    
Regulatory Flexibility Analysis Required: Yes  Government Levels Affected: None 
Small Entities Affected: Businesses  Federalism: No 
Included in the Regulatory Plan: No 
RIN Data Printed in the FR: Yes 
Agency Contact:
Ynette R. Shelkin
Editor, Defense Acquisition Regulations System
Department of Defense
Defense Acquisition Regulations Council
OUSD/AT&L DPAP/DARS, 3060 Defense Pentagon, Room 3B855,
Washington, DC 20301-3060
Phone:571 372-6089