Encl. (2) to COMDTINST 4610.6
MEASURE OF LOSS AND DAMAGE - DETERMINATION OF VALUE
1.
General.
a.
Rights to Recover Money. The Coast Guard is entitled to be paid for the actual loss of or
damage to its property. The government's damages will be measured as determined by
principles of law. The exact amount of loss or damage is a question of fact which must be
proved with evidence. Claims for loss or damage to government property by commercial
carriers are based on documented facts and firm evidence. The burden of proof is on the
government to prove the loss or damage occurred while the property was in the possession
of the carrier. Evidence submitted must support both the charge of carrier responsibility
and the amount of the government's loss. Documentary evidence submitted to support the
amount of the claim must include any incidental damage arising from the loss or damage
to the property. Incidental damages are those expenses reasonably and necessarily incurred
by the government to restore the property or to mitigate the damages. The actual loss for
property lost or destroyed may be the market value at the time of shipment.
b.
Property Valuation. The term "market value" is not always applicable to government
property. Some government property is not suitable for commercial or industrial use. It is
valuable only for military purposes and has no comparable commercial market value. The
law provides that the measure of damage for loss or damage to an article having no market
value is the value of the article to the owner (14 Am. Jr. 2d, section 636, Carriers).
Contracts, purchase orders, and invoices are acceptable proof of value and sometimes
apply when an item moves from the manufacturer to the first government destination.
However, these procurement documents are not maintained as a means of property
valuation after the purchased items are placed in the federal property system. The Federal
Supply Catalog uniform quotation or DLA Consolidated Management Data List for each
class and type of item then becomes the authority for value. The price quotation is based
on the average purchase of like items procured by DLA or the military service under
contract purchases within the same general period. Price quotations for items purchased by
the General Services Administration (GSA) are maintained in the GSA Stock