As prescribed in AI 5145.107-100, insert clause 5152.245-5902, Government Liability for Leased Equipment (Without Operator), in contracts that include leasing of equipment, in which provision of an operator is not included in the lease.
GOVERNMENT LIABILITY FOR LEASED EQUIPMENT (WITHOUT OPERATOR) (AUG 2011)
For equipment furnished by the contractor under this contract, without operator, the Government will assume liability for any loss, damage or destruction of such equipment, except that no reimbursement will be made for loss, damage or destruction due to (1) ordinary wear and tear, (2) mechanical failure, or (3) the fault or negligence of the contractor or the contractor’s agents or employees.
(End of Clause)
Prime’s Interest;
(Applies to contracts that include leasing of equipment, in which provision of an operator is not included in the lease.)