The contracting officer shall include a provision, approved by the Director, with the progress payment provisions of the contract which provides that, except for normal spoilage, the contractor shall bear the risk of loss, theft, destruction, or damage to property affected by the provision, unless the District has expressly assumed that risk.
The contractor shall be obligated to repay the District the amount of unliquidated progress payments based on costs allocable to the property if the loss occurred after the contractor assumed the risk of loss.
The contractor shall not be obligated to pay for the loss of property for which the District has assumed the risk of loss.
D.C. Mun. Regs. tit. 27, r. 27-3223