FAR 52.246-23 - Limitation of Liability

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Prescribed in 46.805
Effective Date:	1 February 1997
Clause or Provision:	Clause
Provision or Clause Number:	52.246-23 - Limitation of Liability
Principle Type And/Or Purpose of Contract:
Required:
Applicable:	Fixed Price, Supply; Cost Reimbursement, Supply; Leasing of Motor Vehicles; Cost Reimbursement, R&D; Fixed Price, R&D; Indefinite Delivery
Optional:	Utility Services; Simplified Acquisition Procedures (Excludes Micro-Purchase); Facilities; Dismantling, Demolition or Removal of Improvements; Fixed Price, Construction; Time & Material/Labor Hour; Cost Reimbursement, Construction; Fixed Price, Service; Cost Reimbursement, Service
Subject:
ProcurementType:
Contract Threshold:
Prescription Overview:	Prescription
Clause Overview:	Clause (a) Except as provided in paragraphs (b) and (c) of this clause, and except for remedies expressly provided elsewhere in this contract, the Contractor shall not be liable for loss of or damage to property of the Government (excluding the supplies delivered under this contract) that— (1) Occurs after Government acceptance of the supplies delivered under this contract; and (2) Results from any defects or deficiencies in the supplies. (b) The limitation of liability under paragraph (a) of this clause shall not apply when a defect or deficiency in, or the Government’s acceptance of, the supplies results from willful misconduct or lack of good faith on the part of any of the Contractor’s managerial personnel. The term “Contractor’s managerial personnel,” as used in this clause, means the Contractor’s directors, officers, and any of the Contractor’s managers, superintendents, or equivalent representatives who have supervision or direction of— (1) All or substantially all of the Contractor’s business; (2) All or substantially all of the Contractor’s operations at any one plant, laboratory, or separate location at which the contract is being performed; or (3) A separate and complete major industrial operation connected with the performance of this contract. (c) If the Contractor carries insurance, or has established a reserve for self-insurance, covering liability for loss or damage suffered by the Government through purchase or use of the supplies required to be delivered under this contract, the Contractor shall be liable to the Government, to the extent of such insurance or reserve, for loss of or damage to property of the Government occurring after Government acceptance of, and resulting from any defects or deficiencies in, the supplies delivered under this contract.
Important Notes/Requirements:
Subcontract Threshold:
Incorporated by Reference:	Yes
Uniform Contract Format:	I
Editor:	Marshall

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Personal notes.