Pursuant to FAR property clause 45.504- Contractor's liability
A. Subject to the terms of the contract and the circumstances surrounding the particular case , the contractor may be liable for shortages, loss, damages, or destruction of Government property unreasonably exceeds the allowances provided for by the contract, the bill of material, of other appropriate criteria
B. The contractor shall investigate and report to the property administrator all cases of loss, damage, or destruction of Government property in its possession or administrator. A report shall be furnished when completed and accepted products or end items are lost, damaged, or destroyed while in the contractor's possession or control.
C. The contractor shall require any of its subcontractors possessing or controlling Government property accountable under the contract to investigate and report all instances of loss, damaged, or destruction of such property.
It is the responsibility of campus departments to report all property losses/thefts through the UC Police Department, stating exact circumstances, etc. All losses will be assigned police case numbers and will be on file for referral purposes.
When there is a significant loss of Government property made known to Equipment Management, the procedures for rectifying the situation are as follows:
- Equipment Management contacts the custodial department to request a meeting with the appropriate department head, to address the concern
- The department head is informed in writing of the need for complete physical inventory to be conducted
- All known Government property is checked for appropriate identifying labels
- The custodial department's security procedures are reviewed, such as number of keys assigned to various individuals allowed to gain entrance where Government property is used
- Loan procedures are reviewed to ascertain if department is using the proper documents to inform Equipment Management of movement of equipment
- For all Government property considered lost or stolen, the department shall prepare the appropriate document for reporting to Equipment Management, as well as report of the loss in detail to the UC Police Department
- The department is reminded of the responsibility and accountability for all Government property in its custodial care
- The department head is informed that although Equipment Management will report the losses/thefts to the Office of Naval Research under a separate cover letter, the campus is still liable for the equipment in question.
- The equipment remains on the reporting department's inventory listing until such time as the campus is relieved of accountability by the sponsoring agency