37.403
Contract clause
FAR 37.403 mandates the inclusion of the indemnification and medical liability insurance clause in all nonpersonal health care service contracts to protect the government and ensure contractor accountability.
Overview
FAR 37.403 requires contracting officers to include the clause at 52.237-7, Indemnification and Medical Liability Insurance, in all solicitations and contracts for nonpersonal health care services. This clause ensures that contractors provide indemnification and maintain appropriate medical liability insurance when delivering these services. The regulation also allows, but does not require, the inclusion of this clause in bilateral purchase orders for nonpersonal health care services awarded under simplified acquisition procedures (FAR Part 13). The intent is to protect the government from liability and ensure contractors are adequately insured when providing health care services that do not constitute an employer-employee relationship.
Key Rules
- Mandatory Clause Inclusion
- The clause at 52.237-7 must be included in all solicitations and contracts for nonpersonal health care services.
- Optional Clause for Purchase Orders
- The clause may be included in bilateral purchase orders for nonpersonal health care services under FAR Part 13 procedures.
Responsibilities
- Contracting Officers: Must insert the required clause in applicable contracts and may include it in certain purchase orders.
- Contractors: Must comply with the indemnification and medical liability insurance requirements specified in the clause.
- Agencies: Should ensure oversight of clause inclusion and contractor compliance with insurance requirements.
Practical Implications
- This section exists to mitigate government liability and ensure contractors are financially responsible for medical malpractice or related claims.
- Contractors must be prepared to provide proof of insurance and indemnification as a condition of contract award.
- Failure to include or comply with the clause can result in increased risk for both the government and the contractor.