Subpart 1828.3—Insurance

Parent topic: PART 1828—BONDS AND INSURANCE

1828.311 Solicitation provision and contract clause on

liability insurance under cost-reimbursement contracts.

1828.311-1 Contract clause.

The contracting officer shall insert the clause at FAR 52.228–7, Insurance—Liability to Third

Persons, in solicitations and contracts, other than those for construction contracts and those for

architect-engineer services, when a cost-reimbursement contract is contemplated unless—

(a) Waived by the procurement officer; or

(b) The successful offeror represents in its offer that it is totally immune from tort liability as a State

agency or as a charitable institution.

1828.311-2 Agency solicitation provisions and contract

clauses.

1828.311-270 NASA solicitation provisions and contract

clauses.

(a) The contracting officer must insert the clause at 1852.228–71, Aircraft Flight Risks, in all costreimbursement contracts for the development, production, modification, maintenance, or overhaul of

aircraft, or otherwise involving the furnishing of aircraft to the contractor, except when the aircraft

are covered by a separate bailment.

(b) The contracting officer must insert the provision at 1852.228–80, Insurance—Immunity from Tort

Liability, in solicitations for research and development when a cost-reimbursement contract is

contemplated.

(c) The contracting officer must insert FAR clause 52.228–7 and the associated clause at

1852.228–81, Insurance—Partial Immunity From Tort Liability, when the successful offeror

represents in its offer that the offeror is partially immune from tort liability as a State agency or as a

charitable institution.

(d) The contracting officer must insert the clause at 1852.228–82, Insurance—Total Immunity From

Tort Liability, when the successful offeror represents in its offer that the offeror is totally immune

from tort liability as a State agency or as a charitable institution.
1828.370 Fixed-price contract clauses.

(a) The contracting officer shall insert the clause at 1852.228–70, Aircraft Ground and Flight Risk, in

all negotiated fixed-price contracts for the development, production, modification, maintenance, or

overhaul of aircraft, or otherwise involving the furnishing of aircraft to the contractor, except as

provided in paragraph (b) of this section, unless the aircraft are covered by a separate bailment. See

the clause preface for directions for modifying the clause to accommodate various circumstances.

(b) The Government need not assume the risk of aircraft damage, loss, or destruction as provided by

the clause at 1852.228–70 if the best estimate of premium costs that would be included in the

contract price for insurance coverage for such damage, loss, or destruction at any plant or facility is

less than $500. If it is determined not to assume this risk, the clause at 1852.228–70 shall not be

made a part of the contract, and the cost of necessary insurance to be obtained by the contractor to

cover this risk shall be considered in establishing the contract price. In such cases, however, if

performance of the contract is expected to involve the flight of Government-furnished aircraft, the

substance of the clause at 1852.228–71, Aircraft Flight Risks, suitably adapted for use in a fixedprice contract, shall be used.

(c) When the clause at 1852.228–70 is used, the term “Contractor's premises” shall be expressly

defined in the contract Schedule and shall be limited to places where aircraft may be located during

the performance of the contract. Contractor's premises may include, but are not limited to, those

owned or leased by the contractor or those for which the contractor has a permit, license, or other

right of use either exclusively or jointly with others, including Government airfields.

1828.371 Clauses incorporating cross-waivers of liability for

International Space Station activities and Science or Space

Exploration activities unrelated to the International Space

Station.

(a) In contracts covering International Space Station activities, or Science or Space Exploration

activities unrelated to the International Space Station that involve a launch, NASA shall require the

contractor to agree to waive all claims against any entity or person defined in the clause based on

damage arising out of Protected Space Operations. This cross-waiver shall apply only if the person,

entity, or property causing the damage is involved in Protected Space Operations and the person,

entity, or property damaged is damaged by virtue of its involvement in Protected Space Operations.

The cross-waivers will require the contractor to extend the cross-waiver provisions to their

subcontractors at any tier and related entities ensuring those subcontractors and related entities

also waive all claims against any entity or person defined in the clause for damages arising out of

Protected Space Operations. The purpose of the clauses prescribed in this section is to extend the

cross-waivers under other agreements to NASA contractors that perform work in support of NASA's

obligations under these agreements.

(b) The contracting officer shall insert the clause at 1852.228–78, Cross-Waiver of Liability for

Science or Space Exploration Activities unrelated to the International Space Station, in solicitations

and contracts above the simplified acquisition threshold for the acquisition of launches for science or

space exploration activities unrelated to the International Space Station or for acquisitions for

science or space exploration activities that are not related to the International Space Station but
involve a launch. If a science or space exploration activity is in support of the International Space

Station, the contracting officer shall insert the clause prescribed by paragraph (c) of this section and

designate its application to that particular launch.

(c) The contracting officer shall insert the clause at 1852.228–76, Cross-Waiver of Liability for

International Space Station Activities, in solicitations and contracts above the simplified acquisition

threshold when the work to be performed involves Protected Space Operations, as that term is

defined in the clause, relating to the International Space Station.

(d) At the contracting officer's discretion, the clauses prescribed by paragraphs (b) and (c) of this

section may be used in solicitations, contracts, new work modifications, or extensions to existing

contracts under the simplified acquisition threshold involving science or space exploration activities

unrelated to the International Space Station, or International Space Station activities, respectively,

in appropriate circumstances. Examples of such circumstances are when the value of contractor

property on a Government installation used in performance of the contract is significant, or when it

is likely that the contractor or subcontractor will have its valuable property exposed to risk or

damage caused by other participants in the science or space exploration activities unrelated to the

International Space Station, or International Space Station activities.

1828.372 Clause for minimum insurance coverage.

In accordance with FAR 28.306(b) and 28.307, the contracting officer may insert a clause

substantially as stated at 1852.228–75, Minimum Insurance Coverage, in fixed-price solicitations and

in cost-reimbursement contracts. The contracting officer may modify the clause to require additional

coverage, such as vessel liability, and higher limits if appropriate for a particular acquisition.