Who is typically held liable for the loss of Government property under a contract?

The liability for the loss of Government property under a contract usually rests with the contractor. This is because, in a contractual agreement, the contractor is typically responsible for protecting and maintaining the Government's property while it is in their possession. The Government usually retains ownership of the property, but the contractor has a duty to safeguard it against loss or damage while fulfilling their contractual obligations.

In this context, the contractor is expected to take all reasonable precautions to prevent loss or damage, and if such incidents occur due to negligence or failure to exercise proper care, the contractor may be held liable for those losses. The terms of the contract and specific regulations may outline the responsibilities and liabilities further, but generally, contractors have a fiduciary duty towards the property entrusted to them.

The other options, such as the Government, third-party insurance, and the procurement officer, do not bear direct responsibility for the physical protection or management of the Government property once it is assigned to the contractor's care under the contract. Each of these parties plays different roles in the procurement and oversight process but do not assume liability for specific losses tied to contractor performance.