28.311-1
Contract clause
Insert the 52.228-7 insurance clause in all cost-reimbursement contracts (except construction and architect-engineer services) to ensure liability coverage for third-party claims.
Overview
FAR 28.311-1 requires contracting officers to include the clause at 52.228-7, Insurance-Liability to Third Persons, in solicitations and contracts for cost-reimbursement contracts, except for construction and architect-engineer services. This clause ensures that contractors maintain adequate liability insurance to protect the government from third-party claims arising from contract performance. The regulation is designed to mitigate risk and clarify insurance obligations in applicable contracts.
Key Rules
- Clause Inclusion Requirement
- The clause at 52.228-7 must be inserted in all cost-reimbursement solicitations and contracts, except for construction and architect-engineer services.
- Agency Acquisition Regulations
- Contracting officers must follow their agency’s acquisition regulations when applying this requirement.
Responsibilities
- Contracting Officers: Must ensure the correct clause is included in applicable solicitations and contracts.
- Contractors: Must comply with the insurance requirements specified in the clause at 52.228-7.
- Agencies: Oversee compliance and provide guidance on acquisition regulations.
Practical Implications
- This section exists to ensure the government is protected from third-party liability claims during contract performance.
- Contractors must be aware of and comply with insurance requirements to avoid contract issues or liability exposure.
- Omitting the clause in applicable contracts can result in non-compliance and increased risk for both the contractor and the government.