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Clauses · DFARS · Insurance and liability

DFARS 252.228-7001 Ground and Flight Risk

Does the regulation require it to flow down?

Yes

Per (k): it flows down to subcontracts including for commercial products/services, except that (1) paragraph (f) does not apply in commercial subs and (2) the clause does not flow down to FAA part 145 repair stations working under their own FAA certificate.

Form
substance ('the requirements of this clause, including this paragraph (k)')
Reaches
all tiers

Checked against acquisition.gov on 2026-08-11 · edition MAR 2023 · base v0.9.3 Read the text ↗

What it makes you produce

4 items for your checklist, slowest first.

  1. A program you have to be running

    You are either running it or you are not, and what the prime asks for is the date it started.

    • Flight and ground operations run to the combined regulation and instruction for contractor flight and ground operations, from award through the whole period of performance

      DFARS 252.228-7001(b)

  2. Something somebody else has to issue you

    The same day if the issuer is one of your own suppliers, months if it is an assessor or an underwriter.

    • Written approval from the Government flight representative — one for the crew members, one for the flight

      Owed before any flight, and without it (d)(2) takes a flight loss outside the Government's assumption of risk

      DFARS 252.228-7001(c)(4)

  3. Something you write

    Days to weeks, and nobody outside your company has to agree to it.

    • A statement to the contracting officer — the aircraft, the time and origin of the loss, and the circumstances

      Owed after damage, loss or destruction of a covered aircraft, except in the cases (h)(2) carves out

      DFARS 252.228-7001(g)(1)

  4. Nothing to send now

    It does not hold the order. It decides what money moves later — what you can claim, what can be claimed from you, and what can be held back — and none of that changes after signature.

    • A price carrying no charge or contingency reserve for insurance against aircraft risk the Government has assumed

      DFARS 252.228-7001(f)

When it is used

Prescribed at 228.371(b): contracts for the manufacture, modification, maintenance, or repair of aircraft. The government assumes the risk of loss/damage to the covered aircraft; the contractor's share is the LESSER of $200,000, 20% of the estimated price/cost of the affected aircraft, or 20% of the price/cost of the contract or order ((h)(1)). Flows down via (k) to all subcontracts, including commercial, with two exceptions.

Read closely

The combined instruction in (b) is Air Force Instruction 10-220, Army Regulation 95-20, NAVAIR Instruction 3710.1, Coast Guard Instruction M13020.3 and Defense Contract Management Agency Instruction 8210-1, in the edition in force at award, and (b) says compliance is owed regardless of the Government's assumption of risk. (h)(1) caps the contractor's share of a covered loss at the lowest of $200,000, 20 percent of the estimated price of the affected aircraft, and 20 percent of the price of the contract or order — the number a small shop provisions against.

The 9 templates that name it, with the line
233RTX Flowdown of U.S. Government Contract Clauses Under U.S. Government ContractsRTXline 780166Northrop Grumman CTM-P-ST-001 — U.S. Government Firm Fixed Price Order (Not for Commercial Products and Services)Northrop Grummanline 2521166Northrop Grumman CTM-P-ST-003 — U.S. Government T&M Order (Not for Commercial Products and Services)Northrop Grummanline 2450168Northrop Grumman CTM-P-ST-004 — U.S. Government Cost Reimbursement Order (Not for Commercial Products and Services)Northrop Grummanline 2547255GD Mission Systems SCM-TMP-005 — General Provisions, Firm Fixed Price PO under U.S. Government Contract (Non-Commercial)General Dynamicsline 1385243GD Mission Systems SCM-TMP-048 — T&M Purchase Orders for Non-Commercial Items in Support of a U.S. Government ContractGeneral Dynamicsline 2294240L3Harris LGL-50.F1 — General T&C and Flowdown Clauses for Other Than Commercial Products/Services under a U.S. Government ContractL3Harrisline 2745273BAE Systems Inc. USGOVA — FAR/DFARS Flow Down Provisions for Subcontracts/Purchase Orders under a U.S. Government (DoD) Prime ContractBAE Systemsline 1291178AAR Component Services NY — U.S. Government Contract FAR and DFARS Clauses Incorporated by ReferenceAAR Corpline 1363

Source: acquisition.gov, DFARS 252.228-7001. CODIFIED REGIME, read 2026-08-11 on the part-252 page at DFARS Change 5/7/2026: "As prescribed in 228.371(b), use the following clause:" with designation (MAR 2023). DEVIATION REGIME, read 2026-08-11 in acquisition.gov/sites/default/files/page_file_uploads/DoD_RFO_Deviation_Part-28.pdf (550313 bytes, 29 pages, DARS Tracking Number 2026-O0005, "Effective February 1, 2026, contracting officers shall use"): 228.371(b) reads "Insert the clause at 252.228-7001, Ground and Flight Risk, in solicitations and contracts—", and the clause head reads "As prescribed in 228.371(b), use the following clause:" with the same designation (MAR 2023). THE TWO REGIMES AGREE on number, prescription and designation. The high occurrence count is the memo's PGI material, not repetition of the prescription. TO RE-DERIVE WITHOUT REDOING THE RESEARCH: fetch that PDF, run pdftotext -layout over it, and grep for 252.228-7001 — 19 occurrences on 2026-08-11, poppler pdftotext. (verified 2026-08-11)

This is research, not legal advice. It states what the regulation says about this clause and cites the paragraph behind it. It does not rule on your order, and it does not rule on whether a prime's markings are correct.