PART 1828

BONDS AND INSURANCE

(September 2015)

 

TABLE OF CONTENTS

 

SUBPART      1828.1                   BONDS

1828.106                                       Administration.

1828.106-6                                          Furnishing information.

 

SUBPART      1828.2                   SURETIES

1828.203                                       Acceptability of individual sureties.

 

SUBPART      1828.3                   INSURANCE

1828.307                                       Insurance under cost-reimbursement contracts.

1828.307-1                                          Group insurance plans.

1828.307-2                                          Liability.

1828.311                                       Solicitation provision and contract clause on liability insurance

                                                        under cost-reimbursement contracts.

1828.311-1                                          Contract clause.

1828.311-2                                          Agency solicitation provisions and contract clauses.

1828.311-270                                NASA solicitation provisions and contract clauses.

1828.370                                       Fixed-price contract clauses.

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.

1828.372                                       Clause for minimum insurance coverage.

 


 

 

PART 1828

BONDS AND INSURANCE

 

Subpart 1828.1—Bonds

 

1828.106  Administration.

 

1828.106-6  Furnishing information.

 

      (c)  The contracting officer is the agency head’s designee.

 

Subpart 1828.2—Sureties

 

1828.203  Acceptability of individual sureties.

 

      (g)  Notification of suspected criminal or fraudulent activities, with all supporting documentation, shall be submitted to the Director, Acquisition Integrity Program within the Office of General Counsel and the Office of Inspector General.

 

Subpart 1828.3—Insurance

 

1828.307  Insurance under cost-reimbursement contracts.

 

1828.307-1  Group insurance plans.

 

      (a)  The procurement officer is the approval authority.

 

1828.307-2  Liability.

 

      (b)(2)(A)  The procurement officer may approve a requirement for property damage liability insurance when:

                        (a)  A commingling of operations permits property damage coverage at a nominal cost to NASA under insurance carried by the contractor in the course of its commercial operations; or    

                        (b)  The contractor is  engaged in the handling of high explosives or in extra hazardous research and development activities undertaken in populated areas.

                  (B)  In all other circumstances, the Assistant Administrator for Procurement is the approval authority.

 

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 cost-reimbursement 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 fixed-price 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 contracts requiring performance on a government installation 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.