"The U.S. Government is a self-insurer and, in this connection, your attention is directed to Standard Terms and Conditions 1.2 and 3.1. The DoD will employ the same inspection procedures for ammunition and other explosives as would be used in the procurement of these types of items for itself. Lot production of ammunition and other explosives, however, carries risks associated with the items' resultant performance. This risk is assumed by the U.S. Government in procurement for its own use, and this risk is also assumed by the purchaser in procurement for its use under this Offer. Accordingly, financial restitution will not be made for claims made on Supply Discrepancy Report Standard Form (SF) 364 Report of Discrepancy (ROD) (see Standard Condition 5.4) for deficiencies pertaining to these items unless such claims involve damage due to U.S. Government actions with respect to compliance with applicable inspection criteria and procedures, or U.S. Government actions with respect to packing, crating, handling, or transportation, or unless the U.S. Government can obtain equal restitution from its contractor."