31.205-19  Insurance and indemnification.

3.  Amend section 31.205-19 by revising paragraphs (e)(2)(iv) introductory text, (e)(2)(iv)(A), and (e)(2)(iv)(C) to read as follows:

31.205-19  Insurance and indemnification.

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(e) * * *

(2) * * *

(iv)  Costs of insurance for the risk of loss of Government property are allowable to the extent that--

(A)  The contractor is liable for such loss;

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(C)  Such insurance does not cover loss of Government property that results from willful misconduct or lack of good faith on the part of any of the contractor's managerial personnel (as described in FAR 52.245-1 (h)(1)(ii)).

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