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52.246-16Responsibility for Supplies.

Researched by the BidStride Research Team

What This Clause Requires

FAR 52.246-16 — Responsibility for Supplies.. This clause is part of the Federal Acquisition Regulation and may be included in government contracts as a solicitation provision or contract clause.

Official Regulation Text

52.246-16 Responsibility for Supplies. As prescribed in 46.316, insert the following clause: Responsibility for Supplies (APR 1984) (a) Title to supplies furnished under this contract 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. (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. (End of clause) [48 FR 42478, Sept. 19, 1983, as amended at 60 FR 34762, July 3, 1995]

Source: eCFR, 48 CFR 52.246-16 (https://www.ecfr.gov/current/title-48/section-52.246-16)

Compliance Checklist

  • As prescribed in 46.316, insert the following clause: Responsibility for Supplies (APR 1984) (a) Title to supplies furnished under this contract 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.
  • (c) Paragraph (b) above shall not apply to supplies that so fail to conform to contract requirements as to give a right of rejection.
  • 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.

Flow-Down to Subcontractors

No flow-down required

This clause applies only to the prime contract and does not need to be flowed down to subcontractors.

Frequently Asked Questions

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This summary is for informational purposes only and reflects the BidStride Research Team's plain-English interpretation of the regulation. It is not legal advice and does not constitute an attorney-client relationship. Always consult the official Federal Acquisition Regulation (FAR) or Defense Federal Acquisition Regulation Supplement (DFARS) text and qualified legal counsel for compliance decisions.