[Federal Register: July 28, 1999 (Volume 64, Number 144)]
[Proposed Rules]               
[Page 40997-40998]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr28jy99-32]                         


[[Page 40997]]

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Part VI

Department of Defense

General Services Administration

National Aeronautics and Space Administration
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48 CFR Parts 47 and 52



Federal Acquisition Regulation; Contractor Liability for Loss of and/or 
Damages to Household Goods; Withdrawal of Proposed Rule


[[Page 40998]]



DEPARTMENT OF DEFENSE

GENERAL SERVICES ADMINISTRATION

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Parts 47 and 52

[FAR Case 98-603]
RIN 9000-AI28

 
Federal Acquisition Regulation; Contractor Liability for Loss of 
and/or Damages to Household Goods

AGENCIES: Department of Defense (DoD), General Services Administration 
(GSA), and National Aeronautics and Space Administration (NASA).

ACTION: Withdrawal of proposed rule.

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SUMMARY: The Civilian Agency Acquisition Council and the Defense 
Acquisition Regulations Council (Councils) are withdrawing a proposed 
rule published in the Federal Register on February 16, 1999 (64 FR 
7736), under FAR case 98-603, Contractor Liability for Loss of and/or 
Damages to Household Goods. The rule proposed to amend the Federal 
Acquisition Regulation (FAR) to standardize the method of calculating 
contractor liability for loss of and/or damage to shipments of 
household goods to conform to International Through Government Bill of 
Lading (ITGBL) procedures.

FOR FURTHER INFORMATION CONTACT: The FAR Secretariat, Room 4035, GS 
Building, Washington, DC 20405, (202) 501-4755, for information 
pertaining to status or publication schedules. For clarification of 
content, contact Ms. Linda Klein, Procurement Analyst, at (202) 501-
3775. Please cite FAR case 98-603, Contractor Liability for Loss of 
and/or Damages to Household Goods; Withdrawal.

SUPPLEMENTARY INFORMATION:

A. Background

    The rule proposed to amend the clause at FAR 52.247-23 with regard 
to the method of calculating contractor liability for loss of and/or 
damage to shipments of household goods.
    Presently, when contracting for the transportation of household 
goods, the contracting officer inserts the clause at 52.247-23, 
Contractor Liability for Loss of and/or Damage to Household Goods, in 
solicitations and contracts. This clause requires the contractor to 
indemnify the owner of the goods at a rate per pound determined to be 
appropriate to the specific situation. The Councils intended to provide 
standardization for liability on shipments of household goods and a 
more equitable compensation for loss of individual items that conforms 
with commercial industry standards by calculating liability, as found 
in the ITGBL, at a rate of $5.00 per pound times the total net shipment 
weight. Respondents to the Federal Register notice expressed several 
concerns with regard to the adoption of the increased liability to 
$5.00 per pound. One major concern was whether this increased liability 
reflected a commercial industry standard. A second concern was that the 
proposed rule did not reflect a demonstrated benefit to the Government 
or industry. After review of the public comments, the Councils have 
decided to withdraw the proposed rule and retain the current clause at 
52.247-23, Contractor Liability for Loss of and/or Damage to Household 
Goods, requiring the contractor to indemnify the owner of the goods at 
a rate per pound determined to be appropriate to the specific 
situation.

List of Subjects in 48 CFR Parts 47 and 52

    Government procurement.

    Dated: July 22, 1999.
Edward C. Loeb,
Director, Federal Acquisition Policy Division.
[FR Doc. 99-19251 Filed 7-27-99; 8:45 am]
BILLING CODE 6820-EP-P