[Federal Register Volume 61, Number 18 (Friday, January 26, 1996)]
[Rules and Regulations]
[Pages 2639-2640]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-1026]
DEPARTMENT OF DEFENSE
GENERAL SERVICES ADMINISTRATION
NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
48 CFR Parts 28 and 52
[FAC 90-37; FAR Case 92-014; Item XII]
RIN 9000-AF78
Federal Acquisition Regulation; Insurance--Liability to Third
Persons
AGENCY: Department of Defense (DOD), General Services Administration
(GSA), and National Aeronautics and Space Administration (NASA).
ACTION: Final rule.
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SUMMARY: The Civilian Agency Acquisition Council and the Defense
Acquisition Regulations Council have agreed on a final rule to amend
the Federal Acquisition Regulation (FAR) to delete a solicitation
provision and prescriptive language pertaining to liability insurance
under cost-reimbursement contracts. This regulatory action was not
subject to Office of Management and Budget review under Executive Order
12866, dated September 30, 1993.
EFFECTIVE DATE: March 26, 1996.
FOR FURTHER INFORMATION CONTACT:
Mr. Peter O'Such at (202) 501-1759 in reference to this FAR case. For
general information, contact the FAR Secretariat, Room 4037, GS
Building, Washington, DC 20405 (202) 501-4755. Please cite FAC 90-37,
FAR case 92-014.
SUPPLEMENTARY INFORMATION:
A. Background
The deleted FAR language applied only to cost-reimbursement
contracts for research and development awarded to state agencies or
charitable institutions that claim partial or total immunity from tort
liability. For these entities, Alternates I and II of 52.228-7,
Insurance--Liability to Third Persons, limit the contract's insurance
requirements and the Government's obligation to indemnify for third
party liability. A proposed rule was published in the Federal Register
at 59 FR 16392, April 6, 1994. No substantive comments were received in
response to the proposed rule.
B. Regulatory Flexibility Act
The Department of Defense, the General Services Administration, and
the National Aeronautics and Space Administration certify that this
final rule will not have a significant economic impact on a substantial
number of small entities under the Regulatory Flexibility Act, 5 U.S.C.
601, et seq., because the FAR language being deleted applies only to
cost-reimbursement contracts for research and development that are
awarded to entities which, by virtue of their status as either an
agency of the state or as a charitable institution, claim partial or
total immunity from tort liability under such contracts. These entities
are believed to be few in number.
C. Paperwork Reduction Act
The Paperwork Reduction Act does not apply because the changes to
the FAR do not impose recordkeeping or information collection
requirements, or collections of information from offerors, contractors,
or members of the public which require the approval of the Office of
Management and Budget under 44 U.S.C. 3501, et seq.
List of Subjects in 48 CFR Parts 28 and 52
Government procurement.
Dated: January 11, 1996.
Edward C. Loeb,
Acting Director, Office of Federal Acquisition Policy.
Therefore, 48 CFR Parts 28 and 52 are amended as set forth below:
1. The authority citation for 48 CFR Parts 28 and 52 continues to
read as follows:
Authority: 40 U.S.C. 486(c); 10 U.S.C. chapter 137; and 42
U.S.C. 2473(c).
PART 28--BONDS AND INSURANCE
28.311-1 [Removed]
28.311-2 and 28.311-3 [28.311-2, 28.311-3 Redesignated as 28.311-1,
28.311-2]
2. Section 28.311-1 is removed and sections 28.311-2 and 28.311-3
are redesignated as 28.311-1 and 28.311-2, respectively.
28.311-1 [Amended]
3. The newly designated 28.311-1 is amended by removing the last
two sentences.
PART 52--SOLICITATION PROVISIONS AND CONTRACT CLAUSES
52.228-6 [Removed and reserved]
4. Section 52.228-6 is removed and reserved.
5. Section 52.228-7 is amended in the introductory paragraph by
removing the citation ``28.311-2'' and inserting ``28.311-1''; by
revising the date of the clause heading; by revising paragraphs
[[Page 2640]]
(a)(1) and (c) introductory text; and by removing Alternates I and II.
The revised text reads as follows:
52.228-7 Insurance--Liability to Third Persons.
* * * * *
Insurance--Liability to Third Persons (Marcg 1996)
(a)(1) Except as provided in subparagraph (a)(2) of this clause,
the Contractor shall provide and maintain workers' compensation,
employer's liability, comprehensive general liability (bodily
injury), comprehensive automobile liability (bodily injury and
property damage) insurance, and such other insurance as the
Contracting Officer may require under this contract.
* * * * *
(c) The Contractor shall be reimbursed--
* * * * *
6. Section 52.245-7 is amended by revising the date of the clause
and the first sentence of paragraph (j) to read as follows:
52.245-7 Government Property (Consolidated Facilities).
* * * * *
Government Property (Consolidated Facilities March 1996)
* * * * *
(j) Indemnification of the Government. The Contractor shall
indemnify the Government and hold it harmless against claims for
injury to persons or damage to property of the Contractor or others
arising from the Contractor's possession or use of the facilities,
except as specified in the clause at FAR 52.228-7, Insurance--
Liability to Third Persons.* * *
* * * * *
7. Section 52.245-10 is amended by revising the date of the clause
and the first sentence of paragraph (f) to read as follows:
52.245-10 Government Property (Facilities Acquisition).
* * * * *
Government Property (Facilities Acquisition March 1996)
* * * * *
(f) Indemnification of the Government. The Contractor shall
indemnify the Government and hold it harmless against claims for
injury to persons or damage to property of the Contractor or others
arising from the Contractor's possession or use of the facilities,
except as specified in the clause at FAR 52.228-7, Insurance--
Liability to Third Persons.* * *
* * * * *
[FR Doc. 96-1026 Filed 1-25-96; 8:45 am]
BILLING CODE 6820-EP-M
