[Federal Register Volume 64, Number 30 (Tuesday, February 16, 1999)]
[Proposed Rules]
[Page 7736]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-3615]



[[Page 7735]]

_______________________________________________________________________

Part V

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; Proposed Rule

  Federal Register / Vol. 64, No. 30 / Tuesday, February 16, 1999 / 
Proposed Rules  

[[Page 7736]]



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: Proposed rule.

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SUMMARY: The Civilian Agency Acquisition Council and the Defense 
Acquisition Regulations Council are proposing 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.

DATES: Comments should be submitted on or before April 19, 1999 to be 
considered in the formulation of a final rule.

ADDRESSES: Interested parties should submit written comments to: 
General Services Administration, FAR Secretariat (MVR), Attn: Laurie 
Duarte, 1800 F Street, NW, Room 4035, Washington, DC 20405.
    E-mail comments submitted over Internet should be addressed to: 
[email protected]. Please cite FAR case 98-603 in all 
correspondence related to this case.

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.

SUPPLEMENTARY INFORMATION:

A. Background

    This proposed rule amends 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 FAR 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. 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, this rule calculates 
liability as found in the ITGBL, at a rate of $5.00 per pound times the 
total net shipment weight.
    This regulatory action was not subject to Office of Management and 
Budget review under Executive Order 12866, dated September 30, 1993, 
and is not a major rule under 5 U.S.C. 804.

B. Regulatory Flexibility Act

    This proposed rule is not expected to have a significant economic 
impact on a substantial number of small entities within the meaning of 
the Regulatory Flexibility Act, 5 U.S.C. 601, et seq., because the rule 
merely standardizes the method calculating contractor liability for 
lost or damaged goods to conform with corporate practice offered to 
national accounts today. An Initial Regulatory Flexibility Analysis 
has, therefore, not been performed. Comments from small entities 
concerning the affected FAR subpart will be considered in accordance 
with 5 U.S.C. 610 of the Act. Such comments must be submitted 
separately and should cite 5 U.S.C. 601, et seq. (FAR case 98-603), in 
correspondence.

C. Paperwork Reduction Act

    The Paperwork Reduction Act does not apply because the proposed 
changes to the FAR do not impose information collection requirements 
that require the approval of the Office of Management and Budget under 
44 U.S.C. 3501, et seq.

List of Subjects in 48 CFR Parts 47 and 52

    Government procurement.

    Dated: February 8, 1999.
Edward C. Loeb,
Director, Federal Acquisition Policy Division.

    Therefore, it is proposed that 48 CFR Parts 47 and 52 be amended as 
set forth below:
    1. The authority citation for 48 CFR Parts 47 and 52 continues to 
read as follows:

    Authority: 40 U.S.C. 486(c); 10 U.S.C. chapter 137; and 42 
U.S.C. 2473(c).

PART 47--TRANSPORTATION

    2. Section 47.207-7 is amended by revising paragraph (e) to read as 
follows:


47.207-7  Liability and insurance.

* * * * *
    (e) The contracting officer shall insert the clause at 52.247-23, 
Contractor Liability for Loss of and/or Damage to Household Goods, in 
solicitations and contracts for the transportation of household goods. 
The contracting officer may decide to revise paragraph (c) of the 
clause by stipulating the rate of liability using the metric equivalent 
in local currency in lieu of U.S. dollars and pound weight.
* * * * *

PART 52--SOLICITATION PROVISIONS AND CONTRACT CLAUSES

    3. Section 52.247-23 is amended by revising the clause date and 
paragraph (c) to read as follows:


52.247-23  Contractor Liability for Loss of and/or Damage to Household 
Goods.

* * * * *
Contractor Liability for Loss of and/or Damage to Household Goods 
(Date)
* * * * *
    (c) The Contractor shall be liable at a rate of $5.00 per pound 
times the total net shipment weight.

[FR Doc. 99-3615 Filed 2-12-99; 8:45 am]
BILLING CODE 6820-EP-P