37.402
Contracting officer responsibilities
Contracting officers must obtain and verify medical liability insurance from health care service contractors before contract award and performance to ensure proper risk protection.
Overview
FAR 37.402 outlines the responsibilities of contracting officers regarding medical liability insurance for nonpersonal health care service contracts. Before awarding a contract, contracting officers must obtain proof that the apparent successful offeror has medical liability insurance. Additionally, before the contractor begins performance, the contracting officer must secure evidence that the insurance coverage meets the contract's requirements. This ensures that both the government and the contractor are protected against potential medical liability claims during contract performance.
Key Rules
- Evidence of Insurability Before Award
- Contracting officers must obtain proof of medical liability insurance from the apparent successful offeror before awarding the contract.
- Evidence of Required Coverage Before Performance
- Contracting officers must ensure that evidence of insurance demonstrating the required coverage is obtained before the contractor starts work.
Responsibilities
- Contracting Officers: Must verify and document insurance coverage at two critical points—prior to award and prior to performance.
- Contractors: Must provide timely and adequate proof of medical liability insurance as required by the contract.
- Agencies: Should ensure oversight and compliance with insurance requirements for nonpersonal health care service contracts.
Practical Implications
- This section exists to mitigate risk and ensure that contractors are properly insured against medical liability claims.
- It impacts daily contracting by requiring proactive documentation and verification of insurance, which can delay award or performance if not managed properly.
- Common pitfalls include failing to obtain timely proof of insurance or accepting insufficient coverage, which can expose the agency to liability.