This text is not in eCFR or DITA. It is extracted from the Revolutionary FAR Overhaul deviation guide for FAR Part 47. The parsed text is a convenience layer; the Source PDF tab is authoritative. Always verify against the official deviation PDF.
As prescribed in 247.271-3(d). See the Prescription tab for the prescribing policy text.
CONTRACTOR LIABILITY FOR LOSS OR DAMAGE (DEC 1991)
- (a) Definitions. As used in this clause— Article means any shipping piece or package and its contents. Schedule means the level of service for which specific types of traffic apply as described in DoD 4500.34-R, Personal Property Traffic Management Regulation.
- (b) For shipments picked up under Schedule I, Outbound Services, or delivered under Schedule II, Inbound Services—
- (1) If notified within one year after delivery that the owner has discovered loss or damage to the owner's property, the Contractor agrees to indemnify the Government for loss or damage to the property which arises from any cause while it is in the Contractor's possession. The Contractor's liability is—
- (i) Non-negligent damage. For any cause, other than the Contractor's negligence, indemnification shall be at a rate not to exceed sixty cents per pound per article.
- (ii) Negligent damage. When loss or damage is caused by the negligence of the Contractor, the liability is for the full cost of satisfactory repair or for the current replacement value of the article.
- (2) The Contractor shall make prompt payment to the owner of the property for any loss or damage for which the Contractor is liable.
- (3) In the absence of evidence or supporting documentation which places liability on a carrier or another contractor, the destination contractor shall be presumed to be liable for the loss or damage, if timely notified.
- (1) If notified within one year after delivery that the owner has discovered loss or damage to the owner's property, the Contractor agrees to indemnify the Government for loss or damage to the property which arises from any cause while it is in the Contractor's possession. The Contractor's liability is—
- (c) For shipments picked up or delivered under Schedule III, Intra-City and IntraArea—
- (1) If notified of loss or damage within 75 days following delivery, the Contractor agrees to indemnify the Government for loss or damage to the owner's property.
- (2) The Contractor's liability shall be for the full cost of satisfactory repair, or for the current replacement value of the article less depreciation, up to a maximum liability of $1.25 per pound times the net weight of the shipment.
- (3) The Contractor has full salvage rights to damaged items which are not repairable and for which the Government has received compensation at replacement value.
Prescription: 247.271-3 Solicitation provisions, schedule formats, and contract clauses
As prescribed in 247.271-3(d). Scope applicability here before applying the clause.
- (d) The clause at 252.247-7016, Contractor Liability for Loss and Damage.
Version history
One version on record, first captured 2026-06-11 15:54:10, effective March 16, 2026.
