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Found 2 results

  1. I am struggling to find the benefits of the Ground and Flight Risk (GFRC) clause when applied to contracts for repair and maintenance of aircraft. Are there any sources that can help? The GFRC limits the contractor's liability for loss or damage to the aircraft by, in effect, creating a deductible and then self-insuring the balance of the loss. The clause is based on an assumption that, in the long run, the government's cost of self-insurance will be less than paying for the contractor's insurance to cover these risks. Where I am confused is how this clause interacts with the Government Prop
  2. Under FAR 52.245-1, Government Property, the government assumes risk of loss except under certain conditions. Para (h)of this clause states; (h) Contractor Liability for Government Property. (1) Unless otherwise provided for in the contract, the Contractor shall not be liable for loss, theft, damage or destruction to the Government property furnished or acquired under this contract, except when any one of the following applies— (i) The risk is covered by insurance or the Contractor is otherwise reimbursed (to the extent of such insurance or reimbursement). The allowability of insurance costs
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