51.202 Authorization
Source: FAR 51.202 on acquisition.gov
Contracting officers must ensure strict prerequisites and written documentation before authorizing contractors to use IFMS vehicles, safeguarding government interests and ensuring proper vehicle use.
Overview
FAR 51.202 outlines the conditions and procedures under which a contracting officer may authorize a cost-reimbursement contractor to use Interagency Fleet Management System (IFMS) vehicles and related services. The regulation ensures that such authorizations are granted only when they support agency objectives, provide cost savings, and include safeguards to protect both the government and the contractor from liability and misuse. The section details the prerequisites for authorization, including insurance requirements, usage monitoring, penalties for misuse, and written statements from contractors regarding non-reimbursable costs. It also specifies the format and content of the written authorization, the process for subcontractor authorizations, and the agency’s liability for accidents and claims under 41 CFR 101-39.4.
Key Rules
- Authorization Criteria
- Contracting officers must determine that IFMS vehicle use is justified, cost-effective, and properly insured, with controls in place to prevent misuse.
- Written Authorization Requirements
- Authorizations must be documented in writing, reference the contract, specify limitations, and instruct compliance with relevant policies.
- Subcontractor Authorizations
- Any authorization for subcontractors must go through the prime contractor and receive their approval.
- Agency Liability
- Agencies assume certain responsibilities and liabilities for accidents and claims when authorizing IFMS vehicle use.
Responsibilities
- Contracting Officers: Must ensure all prerequisites are met, issue written authorizations, monitor compliance, and consider contractor recommendations.
- Contractors: Must obtain required insurance, enforce penalties for misuse, provide written statements on non-reimbursable costs, and ensure vehicles are used only for contract performance.
- Agencies: Must oversee compliance and accept liability as outlined in 41 CFR 101-39.4.
Practical Implications
- This section ensures government vehicles are used appropriately and cost-effectively by contractors, with clear accountability and risk management. Failure to comply can result in penalties, loss of authorization, or increased liability for both contractors and agencies.
(a) The contracting officer may authorize a cost-reimbursement contractor to obtain interagency fleet management system (IFMS) vehicles and related services, if the contracting officer has-
(1) Determined that the authorization will accomplish the agency’s contractual objectives and effect demonstrable economies;
(2) Received evidence that the contractor has obtained motor vehicle liability insurance covering bodily injury and property damage, with limits of liability as required or approved by the agency, protecting the contractor and the Government against third-party claims arising from the ownership, maintenance, or use of an interagency fleet management system vehicle (IFMS);
(3) Arranged for periodic checks to ensure that authorized contractors are using vehicles and related services exclusively under cost-reimbursement contracts;
(4) Ensured that contractors shall establish and enforce suitable penalties for their employees who use or authorize the use of Government vehicles for other than performance of Government contracts (see 41 CFR 101-38.301-1);
(5) Received a written statement that the contractor will assume, without the right of reimbursement from the Government, the cost or expense of any use of interagency fleet management vehicles (IFMS) and services not related to the performance of the contract; and
(6) Considered any recommendations of the contractor.
(b) The authorization shall-
(1) Be in writing;
(2) Cite the contract number;
(3) Specify any limitations on the authority, including its duration, and any other pertinent information; and
(4) Instruct the contractor to comply with the applicable policies and procedures provided in this subpart.
(c) Authorizations to subcontractors shall be issued through, and with the approval of, the contractor.
(d) Contracting officers authorizing contractor use of interagency fleet management system (IFMS) vehicles and related services subject their agencies to the responsibilities and liabilities provided in 41 CFR 101-39.4 regarding accidents and claims.