28.310
Contract clause for work on a Government installation
Include the insurance clause at 52.228-5 in fixed-price contracts over the simplified acquisition threshold for work on Government installations, unless a minimal amount of work or overseas performance applies.
Overview
FAR 28.310 requires the inclusion of the clause at 52.228-5, Insurance—Work on a Government Installation, in solicitations and contracts for fixed-price contracts expected to exceed the simplified acquisition threshold when work will be performed on a Government installation. There are exceptions: the clause is not mandatory if only a small amount of work is required on the installation (such as a few brief visits per month) or if all work will be performed outside the United States and its outlying areas. However, the contracting officer retains discretion to include the clause in these cases if it serves the Government’s interest.
Key Rules
- Mandatory Clause Inclusion
- The insurance clause at 52.228-5 must be included in fixed-price contracts over the simplified acquisition threshold involving work on a Government installation, with limited exceptions.
- Exceptions to Mandatory Inclusion
- The clause is not required if only minimal work is performed on the installation or if all work is outside the U.S. and its outlying areas.
- Contracting Officer Discretion
- The contracting officer may still include the clause in exceptional cases if it benefits the Government.
Responsibilities
- Contracting Officers: Must determine if the clause at 52.228-5 is required and include it as appropriate; exercise discretion for exceptions.
- Contractors: Must comply with insurance requirements if the clause is included in their contract.
- Agencies: Ensure oversight and proper application of insurance requirements for work on Government installations.
Practical Implications
- This section ensures that contractors performing significant work on Government installations carry adequate insurance, protecting both the Government and contractor from potential liabilities. Contractors should be aware of when the clause applies and ensure compliance with insurance requirements. Common pitfalls include overlooking the clause for contracts just over the threshold or misunderstanding the exceptions for minimal or overseas work.