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FAR and DFARS › FAR Part 52: Solicitation Provisions and Contract Clauses › Subpart 52.2

FAR 52.246-16 Responsibility for Supplies.

The codified text (eCFR, as of 2026-10-02). Under the Revolutionary FAR Overhaul ↗, agencies follow class deviations with new text for many parts while the formal rules go through the Federal Register: check the solicitation and your contract's clauses, which rule.

In plain English

This clause explains when title to supplies passes to the Government and who bears the risk of loss or damage before and after that point. It matters because it determines whether the contractor or the Government is financially responsible if supplies are lost or damaged. The rules differ depending on whether shipping is f.o.b. origin or f.o.b. destination, and nonconforming supplies are treated differently.

Applies to: Contractors furnishing supplies under a contract that includes this clause

What it requires

  • Bear risk of loss or damage to supplies until the point specified in the clause, unless the contract provides otherwise
  • Remain responsible for risk of loss or damage to nonconforming supplies until they are cured or accepted

Key terms: formal acceptance · risk of loss · f.o.b. origin · f.o.b. destination · nonconforming supplies

Written by AI from this section's text. A guide, not legal advice: the text below rules.

The text

As prescribed in 46.316, insert the following clause:

Responsibility for Supplies (APR 1984)

(a) Title to supplies furnished under this contract shall pass to the Government upon formal acceptance, regardless of when or where the Government takes physical possession, unless the contract specifically provides for earlier passage of title.

(b) Unless the contract specifically provides otherwise, risk of loss of or damage to supplies shall remain with the Contractor until, and shall pass to the Government upon—

(1) Delivery of the supplies to a carrier, if transportation is f.o.b. origin; or

(2) Acceptance by the Government or delivery of the supplies to the Government at the destination specified in the contract, whichever is later, if transportation is f.o.b. destination.

(c) Paragraph (b) above shall not apply to supplies that so fail to conform to contract requirements as to give a right of rejection. The risk of loss of or damage to such nonconforming supplies remains with the Contractor until cure or acceptance. After cure or acceptance, paragraph (b) above shall apply.

(d) Under paragraph (b) above, the Contractor shall not be liable for loss of or damage to supplies caused by the negligence of officers, agents, or employees of the Government acting within the scope of their employment.

(End of clause)

Sections it refers to

  • 46.316 Responsibility for supplies.

Sections that refer to it

  • 8.1104 Contract clauses.
  • 46.316 Responsibility for supplies.
  • 46.505 Transfer of title and risk of loss.

← 52.246-15 Certificate of Conformance. · 52.246-17 Warranty of Supplies of a Noncomplex Nature. →

Rule changes for FAR Part 52

Source: eCFR, 48 CFR chapters 1 and 2 (GPO GovInfo bulk data) ↗. Plain words for the terms: glossary.

FAR 52.246-16 Responsibility for Supplies · SpendQuery