D.C. Mun. Regs. r. 27-4109
Contractors shall be responsible and liable for District property in their possession, unless otherwise specified in the contract.
When the District provides District property directly to a subcontractor, the provisions of this section shall apply to the subcontractor.
Subcontractors shall be liable for loss of or damage to District property furnished through the prime contractor.
A prime contractor that provides District property to a subcontractor shall not be relieved of any responsibility to the District that the prime contractor may have under the terms of the prime contract.
Subject to the terms of the contract and the circumstances surrounding the particular case, the contractor shall be liable for shortages, loss, damages, or destruction of District property. The contractor shall also be liable when the use or consumption of District property unreasonably exceeds the allowances provided for by the contract.
The contractor shall investigate and report to the contracting officer all cases of loss, damage, or destruction of District property in its possession or control as soon as the facts become known, or when requested by the contracting officer. A report shall also be furnished when completed and accepted products or end items are lost, damaged, or destroyed while in the contractor's possession or control.
The contractor shall require any of its subcontractors possessing or controlling District property accountable under the contract to investigate and report to the contractor all instances of loss, damage, or destruction of District property.
D.C. Mun. Regs. r. 27-4109