Common use of Awardee's Liability for Government Owned Equipment and Property Clause in Contracts

Awardee's Liability for Government Owned Equipment and Property. 1. Except as otherwise specifically provided, the awardee shall not be liable for loss or destruction of or damage to any property purchased or otherwise acquired by it in connection with the award, including NSF-owned property, unless such loss, destruction or damage results from the willful misconduct or lack of good faith on the part of any of the awardee's directors or officers, or on the part of any of her/his managers, superintendents or other equivalent representatives, who have supervision or direction of (a) all or substantially all of the awardee's business or (b) all or substantially all of the awardee's operations at any one plant or separate location in which the agreement is being performed or (c) a separate and complete major industrial operation in connection with the performance of the agreement. 2. Unless specifically authorized by the cognizant NSF Grants and Agreements Officer (note that express statutory authority is required prior to consideration of insuring government property), the awardee will not be reimbursed for the cost of insurance covering loss or destruction of or damage to NSF-owned property. 3. In the event of loss, or destruction of, or damage to NSF-owned property, arising from any cause, the awardee shall, to the extent reasonable and practical, promptly notify the cognizant NSF Program Officer, Grants and Agreements Officer and the NSF Property Administrator and take all reasonable steps to protect the property from further damage, separate the damaged and undamaged NSF-owned property, put all the property in the best possible order and furnish to the cognizant NSF Grants and Agreements Officer a statement identifying: (a) The lost, destroyed and damaged NSF-owned property; (b) The time and origin of the loss, destruction or damage; (c) All known interests in commingled property of which the NSF-owned property is a part; and (d) The insurance, if any, covering any part of or interest in such commingled property. 4. The awardee, to the extent reasonable and practical, may make repairs and renovations of damaged NSF-owned property, except that major repairs and renovations shall be made only with the approval of the cognizant NSF Program Officer and Grants and Agreements Officer. 5. In the event the awardee is indemnified, reimbursed or otherwise compensated for any loss or destruction or damage to NSF-owned property, it shall use the proceeds to repair, renovate or replace the NSF-owned property involved, or shall otherwise reimburse the Government, as directed by the cognizant NSF Grants and Agreements Officer. The awardee shall do nothing to prejudice the Government's right to recover against third parties for any such loss, destruction or damage and, upon the request of the cognizant NSF Grants and Agreements Officer, shall, at the Government’s expense, furnish to the Government all reasonable assistance and cooperation (including the prosecution of suit and the execution of instruments of assignment in favor of the Government) in obtaining recovery. 6. This Article shall not be construed as relieving a subrecipient from liability for loss or destruction of or damage to NSF-owned property in its possession or control, except to the extent that the subaward, with the prior written approval of the cognizant NSF Grants and Agreements Officer, may provide for the relief of the subrecipient from such liability. In the absence of such approval, the subaward shall contain appropriate provisions requiring the return of all NSF-owned property in the same condition as when received except for reasonable wear and tear or for the utilization of the property in accordance with the provisions of the prime agreement. 7. Where the subrecipient has not been relieved from liability for any loss or destruction of or damage to NSF-owned property, the awardee shall enforce the liability of the subrecipient for such loss or destruction of or damage to the NSF-owned property for the benefit of the Government.