As prescribed in 46.805(a)(90) insert the following clause:
GOVERNMENT-CAUSED LOSS OR DAMAGE (AUG 2008) - DLAD
(a) If the Government, through negligence, causes loss or damage to Contractor equipment or materials being used in the performance of this contract, the Government will reimburse the contractor for the actual cost of repair or replacement directly attributable to the Government’s negligence. Authorization for such repairs or replacement must be approved in writing by the purchasing Contracting Officer prior to corrective action by the Contractor, except as provided below. The Government shall be relieved of the liability for such loss or damage if of the Contractor relieves or would relieve any commercial customer of such liability under like circumstances.
(b) If the Government, through negligence, causes loss or damage to Contractor equipment or materials being used in the performance of this contract, and the loss or damage creates a safety hazard to personnel or could cause more damage to the equipment being installed or surrounding existing equipment and facilities, the Contracting Officer's Representative (COR) is authorized to direct repair and the Contractor should immediately repair such damages. In these instances the COR shall immediately notify the Contracting Officer in writing of details to describe the extent and causes of damages, and any other information that may be required. The Contractor shall immediately notify the Contracting Officer in writing describing all repairs made, additional materials furnished, the period during which repairs were made, the additional cost to the Government under this contract for those repairs and any other information that may be required by the Government. The Government will reimburse the contractor for the actual cost of repair or replacement directly attributable to the Government’s negligence. The Government shall be relieved of the liability for such loss or damage if of the Contractor relieves or would relieve any commercial customer of such liability under like circumstances.
(c) In no event shall the Government be liable to the contractor for consequential damages, lost profits, or other indirect damages.
(End of Clause)
