[Federal Register Volume 64, Number 144 (Wednesday, July 28, 1999)]
[Proposed Rules]
[Page 40998]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-19251]
[[Page 40997]]
_______________________________________________________________________
Part VI
Department of Defense
General Services Administration
National Aeronautics and Space Administration
_______________________________________________________________________
48 CFR Parts 47 and 52
Federal Acquisition Regulation; Contractor Liability for Loss of and/or
Damages to Household Goods; Withdrawal of Proposed Rule
Federal Register / Vol. 64, No. 144 / Wednesday, July 28, 1999 /
Proposed Rules
[[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
