[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.

-----------------------------------------------------------------------

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