28.311
Solicitation provision and contract clause on liability insurance under cost-reimbursement contracts
FAR 28.311 mandates the inclusion of liability insurance clauses in cost-reimbursement contracts to ensure adequate protection for both contractors and the government.
Overview
FAR 28.311 addresses the requirements for including solicitation provisions and contract clauses related to liability insurance in cost-reimbursement contracts. This section ensures that contractors working under cost-reimbursement arrangements maintain adequate liability insurance to protect both the contractor and the government from potential claims arising from contract performance. The regulation references specific clauses and provisions that must be inserted into solicitations and contracts, as detailed in the subsequent subsections (28.311-1 and 28.311-2). The main goal is to mitigate risk and clarify insurance obligations for all parties involved in cost-reimbursement contracts.
Key Rules
- Inclusion of Liability Insurance Clauses
- Contracting officers must include specific liability insurance clauses in cost-reimbursement contracts to ensure contractors maintain appropriate coverage.
- Reference to Agency-Specific Provisions
- Agencies may have additional solicitation provisions and contract clauses related to liability insurance that must be incorporated as required.
Responsibilities
- Contracting Officers: Must ensure the correct liability insurance clauses are included in solicitations and contracts for cost-reimbursement arrangements.
- Contractors: Must obtain and maintain the required liability insurance as specified in the contract clauses.
- Agencies: May establish additional requirements or clauses specific to their needs and must ensure these are included as appropriate.
Practical Implications
- This section exists to protect both the government and contractors from financial loss due to liability claims during contract performance.
- It impacts daily contracting by requiring careful review and inclusion of insurance requirements in cost-reimbursement contracts.
- Common pitfalls include failing to include the correct clauses or not verifying contractor compliance with insurance requirements.