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<br />
<br />the Contracting Officer. When any property tor which the Government Is responsIble Is replaced
<br />or repaired, the COntracting OffIcer shall make an equitable adjustment In accord~nce with
<br />paragraph (h) of this clause.
<br />
<br />(f) Access. The Government and all Its designees shall have access at 81 I reasonable times to
<br />the prem,ses in which any Government property fs located for the purpose of InspecTing the
<br />Government property.
<br />
<br />(g) LimIted risk of loss. (1) The Contractor shel I not be liable for loss or destruction of, or
<br />damage ~o, the ~vernment property provided under this contraCT or for expenses Incidental to such
<br />loss, destruction, or damage, except as provided In subparagraphs (2) and (3) below.
<br />
<br />(2) The Contractor shatl be responsible for loss or deSTrUCTion of, or damage to, The
<br />GovernmenT properTY provided under ThJs contract (Jncfudfng expenses Inc'denTa' to such loss,
<br />destrUCTion, or damage)--
<br />
<br />(1) That results from a risk expressly required to be insured under this contract, but only
<br />to the extent of the Jnsurance required TO be purchased and maintained or to the extent of
<br />insurance actually purchased and maintained, whichever is greater;
<br />
<br />(II) That results from a risk that is In fact covered by Insurance or for which the
<br />Contractor ls otherwise reJmbursed, but only to the extent of such Insurance or reImbur-
<br />sement;
<br />
<br />(iil) For whIch the Contractor Is otherwIse responsIble under the express terms of this
<br />contract;
<br />
<br />(Iv) That results from willful miscondUCT or leck of good faith on The part of the
<br />Contractor's managerIal personnel; or
<br />
<br />(v) That results from a failure on the ~rt of the Contractor, due to willful misconduct or
<br />lack of good faith on the part of the Contractor's managerial personnel, to establIsh and.
<br />administer a program or system for the control, use, protection, preservatlon, maIntenance,
<br />and repaIr of Government property as required by paragraph (e) of this clause.
<br />
<br />(3) (I) If the Contractor f.lls to acT as provided by subdivision (g)(2)(v) above, afTer beIng
<br />notified (by certified mall addressed to one of the ContraCTor's menagerial personnel) of the
<br />GovernmenT's disapproval, wlThdrawal of approval, or nonacceptance of the system o~ program, It
<br />sha'l be concluslvely presumed that such failure was due to a willful misconduct or lack of
<br />good faith on The parT of the Contractor's managerial personnel.
<br />
<br />(ii) In such event, any loss or destruction of, or damage to, the Government property shall
<br />be presumed to have resulted from such faIlure unless the Contractor can establish by clear
<br />and convIncing evidence that such loss, destructIon, or damage--
<br />
<br />(A) Old not result from the Contractor's failure to mainTain an approved program or
<br />system; or
<br />
<br />(a) Occurred whIle an epproved program or system was maintained by the Contractor.
<br />
<br />(4) If the Contractor transfers Government property to the posseSSion and control of a sub-
<br />contractor, the transfer shall not affect the liability of the Contractor for loss or destruc-
<br />tion of, or damage to, the property as set forth ebove. However, the Contractor shall require
<br />the subcontracTor to assume the risk of, and be responsible for, any loss or destruction of. or
<br />damage to, the property whl Ie in the subcontractor's possessIon or control, except to the
<br />extent that the subcontract, with the advance approval of the Contracting Officer, relieves the
<br />subcontractor from such liability. In the absence of such approval, the subcontract shal I con-
<br />tain appropriate provisions requiring the return of al I Government property In as good con-
<br />ditton as when received, except for re~sonable wear and tear or for ,ts use in aCCordance wfth
<br />the provisions of the prime contract.
<br />
<br />(5) Upon loss or des~ructfon of, or damage to, Governmen~ proper~y provided under this
<br />cont~act, the ConTractor shall so notify the Contract;ng OffIcer and shall commun)cate w)th the
<br />loss and salvage organization, if any, desIgnated by the Contracting Officer. With the
<br />assistance of any such organization, the Contractor shal I take all reasonable action to protect
<br />the Government property from further damage, separate the damaged and undamaged Government pro-
<br />perty, put all The affected Government property in the besT possible order, and furnish to the
<br />Contracting Officer a statement of--
<br />
<br />(I) The lost, destroyed, or damaged Government property.
<br />
<br />(il) The time and origin of The loss, destruction, or damage;
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