FAR 32.503-16 Risk of loss
Subsection Federal Acquisition Regulation
Facts
- Citation
- FAR 32.503-16
- Type
- Subsection
- Last amended
- 77 FR 12937 Effective Apr 2, 2012
- Text as of
- FAC 2026-01
- Official text
- acquisition.gov
Text from acquisition.gov. Federal Register history from the Federal Register's records of the rules that amended this subsection.
Text
(a) Under the Progress Payments clause, and except for normal spoilage, the contractor bears the risk of loss for Government property under the clause, even though title is vested in the Government, unless the Government has expressly assumed this risk. The clauses prescribed in this regulation related to progress payments, default, and terminations do not constitute a Government assumption of this risk.
(b) If a loss occurs in connection with property for which the contractor bears the risk, the contractor is obligated to repay to the Government the amount of unliquidated progress payments based on costs allocable to the property.
(c) The contractor is not obligated to pay for the loss of property for which the Government has assumed the risk of loss. However, a serious loss may impede the satisfactory progress of contract performance, so that the contracting officer may need to act under paragraph (c)(5) of the Progress Payments clause.
Federal Register history
| Final rule | Published | Effective |
|---|---|---|
| Federal Acquisition Regulation; Government Property | ||
| Federal Acquisition Regulation; FAR Case 2008-011, Government Property |
Quick answers
What is FAR 32.503-16?
FAR 32.503-16 is a subsection of the Federal Acquisition Regulation, titled "Risk of loss".
When was FAR 32.503-16 last changed?
The most recent final rule on record is "Federal Acquisition Regulation; Government Property" (77 FR 12937), published Mar 2, 2012 and effective Apr 2, 2012.
Are changes to FAR 32.503-16 proposed?
No proposed rule from the last 3 years is waiting on a final rule.
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