FAR 46.800—Scope of subpart.
Plain-English Summary
FAR 46.800 is the scope statement for Subpart 46.8, which addresses when and how the Government may limit a contractor’s liability for loss of or damage to Government property caused by defective or deficient supplies or services. It focuses on two specific conditions: the damage must occur after Government acceptance, and it must result from defects or deficiencies in the supplies delivered or services performed. In practice, this subpart is about allocating risk after acceptance and determining whether the contractor remains responsible for later harm to Government property when the underlying cause is a product or performance defect. It matters because acceptance normally shifts certain risks to the Government, but this subpart preserves a basis for contractor liability when the accepted item or service was defective. For contracting officers, it frames when contract clauses and remedies should be used to limit or define liability; for contractors, it signals that acceptance does not necessarily end all exposure if latent defects later damage Government property. The section is narrow in scope, but it is important because it ties together acceptance, defects, damage to Government property, and liability limitations in one place.
Key Rules
Applies After Acceptance
This subpart only addresses loss or damage that occurs after the Government has accepted the supplies or services. It does not govern pre-acceptance damage or other liability issues outside this post-acceptance context.
Requires Defect-Based Causation
The loss or damage must result from defects or deficiencies in the delivered supplies or performed services. There must be a causal link between the defect or deficiency and the Government property damage.
Government Property Only
The subject of the loss or damage must be property of the Government. The subpart is not a general rule for all third-party property damage or all contractor liability issues.
Limits Contractor Liability
The subpart prescribes policies and procedures for limiting contractor liability in this narrow situation. It is a framework for deciding when liability should be capped, allocated, or otherwise constrained under the contract.
Works With Acceptance Rules
Because the trigger is post-acceptance damage, this subpart operates alongside the FAR acceptance framework. Contracting officers must consider whether acceptance was proper and whether any defect was latent or otherwise tied to the contractor’s performance.
Responsibilities
Contracting Officer
Determine whether the facts fit the scope of this subpart, including whether the damage occurred after acceptance and whether it was caused by defects or deficiencies. Use the subpart’s policies and procedures when drafting, administering, or enforcing contract terms that address contractor liability for Government property damage.
Contractor
Understand that acceptance does not automatically eliminate liability if defective supplies or services later cause damage to Government property. Ensure delivered supplies and performed services meet contract requirements and be prepared to address liability issues if defects or deficiencies are alleged.
Agency
Apply the subpart consistently when establishing policies and procedures for limiting contractor liability in post-acceptance damage cases. Ensure contract administration practices align with the Government’s risk allocation and property protection interests.
Practical Implications
Acceptance is a key dividing line: once the Government accepts supplies or services, later damage claims must be analyzed under this subpart rather than ordinary pre-acceptance defect rules.
Contractors should not assume acceptance ends all exposure; latent defects or deficient performance can still create liability if they later damage Government property.
Contracting officers should document acceptance, the nature of the defect or deficiency, and the causal connection to the damage, because those facts determine whether the subpart applies.
This section is narrow, so it should not be stretched to cover unrelated property damage, performance disputes, or liability questions outside Government-owned property.
Clear contract language and careful administration help avoid disputes over whether the damage was truly post-acceptance and defect-caused.
Official Regulatory Text
This subpart prescribes policies and procedures for limiting contractor liability for loss of or damage to property of the Government that- (a) Occurs after acceptance and (b) Results from defects or deficiencies in the supplies delivered or services performed.