[Federal Register Volume 61, Number 196 (Tuesday, October 8, 1996)]
[Rules and Regulations]
[Pages 52709-52710]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-25568]
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DEPARTMENT OF VETERANS AFFAIRS
48 CFR Parts 837 and 852
RIN 2900-AG67
VA Acquisition Regulation: Service Contracting
AGENCY: Department of Veterans Affairs.
ACTION: Final rule.
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SUMMARY: This document, with a nonsubstantive change, adopts as a final
rule the provisions of a proposal to amend the Department of Veterans
Affairs (VA) Acquisition Regulation pertaining to ``SERVICE
CONTRACTING'' and ``SOLICITATION PROVISIONS AND CONTRACT CLAUSES.'' The
regulation is amended to implement a class deviation from the Federal
Acquisition Regulation by establishing a modified clause for
indemnification and medical liability insurance requirements applicable
to VA contracts. The use of this clause, instead of the Federal
Acquisition Regulation clause, is intended to ensure that contractors
providing nonpersonal health-care services to VA are able to comply
with State statutes and avoid excessive costs.
EFFECTIVE DATE: October 8, 1996.
FOR FURTHER INFORMATION CONTACT: Wanza Lewis, Acquisition Policy
Division (95A), Office of Acquisition and Materiel Management,
Department of Veterans Affairs, 810 Vermont Avenue, NW, Washington, DC
20420, (202) 273-8820.
SUPPLEMENTARY INFORMATION: On October 22, 1993, we published in the
Federal Register (58 FR 54548) a proposal to amend the Department of
Veterans Affairs Acquisition Regulation to implement a class deviation
from the Federal Acquisition Regulation Section 37.401 and clause at
Section 52.237-7. Comments were solicited concerning the proposal for
60 days, ending December 20, 1993. We did not receive any comments. The
information presented in the proposed rule document still provides a
basis for this final rule. Therefore, based on the rationale set forth
in the proposed rule document, we are adopting the provisions of the
proposed rule as a final rule without change, except for a
nonsubstantive change which removes the designation of the material in
Section 852.237-7 as a deviation.
The Secretary hereby certifies that this final rule will not have a
significant economic impact on a substantial number of small entities
as they are defined in the Regulatory Flexibility Act (RFA), 5 U.S.C.
601-612. This final rule would not cause a significant effect on any
entities. Therefore, pursuant to 5 U.S.C. 605(b), this amendment is
exempt from the initial and final regulatory flexibility analysis
requirements of sections 603 and 604.
List of Subjects
48 CFR Part 837
Government procurement.
48 CFR Part 852
Government procurement, Reporting and recordkeeping requirements.
Approved: September 25, 1996.
Jesse Brown,
Secretary of Veterans Affairs.
For the reasons set forth in the preamble, 48 CFR parts 837 and 852
are amended as set forth below:
PART 837--SERVICE CONTRACTING
1. The authority citation for part 837 is revised to read as
follows:
Authority: 38 U.S.C. 501 and 40 U.S.C. 486(c).
2. Subpart 837.4, section 837.403 is added to read as follows:
Subpart 837.4--Nonpersonal Health-Care Services
837.403 Contract clause.
The contracting officer shall insert the clause at 852.237-7,
Indemnification and Medical Liability Insurance, in lieu of FAR Clause
52.237-7, in solicitations
[[Page 52710]]
and contracts for nonpersonal health-care services. The contracting
officer may include the clause in bilateral purchase orders for
nonpersonal health-care services awarded under the procedures in FAR
part 13 and (VAAR) 48 CFR part 813.
PART 852--SOLICITATION PROVISIONS AND CONTRACT CLAUSES
3. The authority citation for part 852 continues to read as
follows:
Authority: 38 U.S.C. 501 and 40 U.S.C. 486(c).
4. Section 852.237-7 is added to read as follows:
852.237-7 Indemnification and Medical Liability Insurance.
As prescribed in 837.403, insert the following clause:
Indemnification and Medical Liability Insurance (October 1996)
(a) It is expressly agreed and understood that this is a
nonpersonal services contract, as defined in Federal Acquisition
Regulation (FAR) 37.101, under which the professional services
rendered by the Contractor or its health-care providers are rendered
in its capacity as an independent contractor. The Government may
evaluate the quality of professional and administrative services
provided but retains no control over professional aspects of the
services rendered, including by example, the Contractor's or its
health-care providers' professional medical judgment, diagnosis, or
specific medical treatments. The Contractor and its health-care
providers shall be liable for their liability-producing acts or
omissions. The Contractor shall maintain or require all health-care
providers performing under this contract to maintain, during the
term of this contract, professional liability insurance issued by a
responsible insurance carrier of not less than the following
amount(s) per specialty per occurrence: [Contracting Officer insert
the dollar value(s) of standard coverage(s) prevailing within the
local community as to the specific medical specialty, or
specialties, concerned, or such higher amount as the Contracting
Officer deems necessary to protect the Government's interests].
However, if the Contractor is an entity or a subdivision of a State
that either provides for self-insurance or limits the liability or
the amount of insurance purchased by State entities, then the
insurance requirement of this contract shall be fulfilled by
incorporating the provisions of the applicable State law.
(b) An apparently successful offeror, upon request of the
Contracting Officer, shall, prior to contract award, furnish
evidence of the insurability of the offeror and/or of all health-
care providers who will perform under this contract. The submission
shall provide evidence of insurability concerning the medical
liability insurance required by paragraph (a) of this clause or the
provisions of State law as to self-insurance, or limitations on
liability or insurance.
(c) The Contractor shall, prior to commencement of services
under the contract, provide to the Contracting Officer Certificates
of Insurance or insurance policies evidencing the required insurance
coverage and an endorsement stating that any cancellation or
material change adversely affecting the Government's interest shall
not be effective until 30 days after the insurer or the Contractor
gives written notice to the Contracting Officer. Certificates or
policies shall be provided for the Contractor and/or each health-
care provider who will perform under this contract.
(d) The Contractor shall notify the Contracting Officer if it,
or any of the health- care providers performing under this contract,
change insurance providers during the performance period of this
contract. The notification shall provide evidence that the
Contractor and/or health-care providers will meet all the
requirements of this clause, including those concerning liability
insurance and endorsements. These requirements may be met either
under the new policy, or a combination of old and new policies, if
applicable.
(e) The Contractor shall insert the substance of this clause,
including this paragraph (e), in all subcontracts for health-care
services under this contract. The Contractor shall be responsible
for compliance by any subcontractor or lower-tier subcontractor with
the provisions set forth in paragraph (a) of this clause.
(End of Clause)
[FR Doc. 96-25568 Filed 10-7-96; 8:45 am]
BILLING CODE 8320-01-P
