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<br />(III) AI I known Interests In commingled property of which the Government property Is a
<br />part; and
<br />
<br />(iv) The Insurance, It any, covering any part of or interest in such commingled property.
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<br />(6) The ContraCTor shal I repair, renovate, end take such other action with respe~t to damaged
<br />Government property as the Contracting Offfcer directs. It the Government property fs
<br />destroyed or damaged beyond practice I repair, or is damaged and so commingled or combined with
<br />property of others (including the Contractor's) that separation is Impractical, the' Contractor
<br />may, with the approval of and subject to any conditions imposed by the Contracting Officer,
<br />sel I such property for the account of the Government. Such sales may be made in order to mini-
<br />m'ze the loss to the Government, to permit the resumption of business, or to accompliSh e sImi-
<br />lar purpose. The Contractor shall be entitled to an equitable adjustment in the contract price
<br />for the expenditures made In performing the obligations under this subparagraph (g)(6) in
<br />accordance with paragraph (h) of this clause. However, the Government may directly reimburse
<br />the loss and salvage organization for any of their charges. The Contracting Officer shel I give
<br />due regard to the Contractor's liabilIty under this paragraph (g) when making any such
<br />equitable adjustment.
<br />
<br />(7) The Contractor shall not be reimbursed for, and shell not Include as an Item of overhead,
<br />the cost of Insurance or of any reserve ooverlng risk of loss or destruction of, or damage to,
<br />Government property, except to the extent that the Government mey have exp'ressly requlred the
<br />Contractor to carry such fnsurance under another provision of th)s contract.
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<br />(8) In the event The Contractor Is relmbut?ed or otherwise compensated for any loss or
<br />destruction of, or damage to, Government property, the Contractor shall use the proceeds to
<br />repair, renovate, or replace the lost, destroyed, or damaged Government property or shal I
<br />otherwise credit the proceedS to, or equitably reimburse, the Government, as directed by the
<br />ContraCTing OffIcer.
<br />
<br />(9) The Contractor shall do nothing to prejudice the Government's rights to recover against
<br />third parties for any loss or destruction of, or damage to, Government property. Upon the
<br />request of the Contracting Otflcer, the Contrector she I I, aT the Government's expense, furnIsh
<br />to the Government all reasonable asslstance and cooperation (Includlng The prosecution of suit
<br />and the execution of instruments of assignment in favor of the Government) in obtaining reco-
<br />very. In addition, where a subcontractor has not been rei ieved from IIabIllty for any loss or
<br />destruction of, or damage to, Government property, the Contractor shall enforce for the benefit
<br />of the Government the liability of the subcontractor for such loss, destruction, or damage.
<br />
<br />(h) EQuitable adjustment. When this clause specifies an equitable adjustment, it shall be made
<br />to any affected contract provision in accordance with the procedures of the Changes clause. When
<br />appropriate, the Contracting Officer may initiate an equitable adjustment in favor of the
<br />Government. The right to an equitable adjustment shall be the Contractor's exclusive remedy. The
<br />Government shall not be Ilable to suit for breach of contract for--
<br />
<br />(1) Any delay in delivery of Government-furnished property;
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<br />(2) Delivery of Government-furnished property In a condition not suitable for its intended
<br />
<br />use;
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<br />. (3) A decrease in or substitution of Government-furnished property; or
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<br />(4) Fallure to repair or replace Government property for which the Government is responsible.
<br />
<br />el) Final accounTln and disposition of Government propert. Upon completing this
<br />contraCT, or at such ear er ates as may xed he tracting Officer, the
<br />ConTraCTor shall submit, In a form accepTable To the Contracting Officer, InvenTory schedu-
<br />les eovertng all items of Government property nOT consumed In performing this contract or
<br />delivered to the Government. The Contractor shall prepare for shipment, deliver f.o.b. ori-
<br />gin, or dispose of the Government property as may be directed or authorized by the
<br />Contractlng Officer. The net proceedS of any such disposal shal I be credited to the cost of
<br />the work covered by thls contract or paid to the Government as directed by the Contracting
<br />Officer. The foregoing provisions shal I apply to scrap from Government property; orovlded,
<br />however, that the Contracting Officer may authoriZe or direct the Contractor to omIt Trom
<br />such inventory schedules any scrap consisting of faulty castings or forgings or of cutting
<br />and processing waSTe, suCh as chips, CUTtings, borings, turnings, short ends, circles, trim-
<br />mings, clippings, and remnants, and TO d;spose of such scrap In accordance with The
<br />Contractor's normal practice and account for It es a perT of general overhead or OTher retm-
<br />bursable costs in accordance with the Contractor1s establ ished accounting procedures.
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