Overview
This section defines the scope and limitations of FAR Subpart 46.8, which addresses contractor liability for loss of or damage to property. It explicitly identifies the specific types of contracts and services that are exempt from these particular liability policies.
Key Rules
- Commercial Exclusion: The subpart is entirely inapplicable to contracts for commercial products and commercial services.
- Specific Service Exemptions: Even for non-commercial requirements, this subpart does not apply to:
- Information technology and telecommunications.
- Construction and the maintenance or rehabilitation of real property.
- Architect-engineer (A&E) services.
- Technical Data Exception: Guidance regarding contractor liability for nonconforming technical data is deferred to FAR Subpart 46.7 (Warranties) rather than handled under this subpart.
Practical Implications
- Contracting Officers must look to other FAR parts or specific agency clauses to address liability and risk allocation for the majority of common acquisitions, such as IT systems, construction projects, and commercial off-the-shelf (COTS) items.
- The protections and risk-sharing mechanisms defined in Subpart 46.8 are narrowly tailored to specialized, non-commercial acquisitions that do not fall into the exempted categories.