Subpart 1328.3 - Insurance

The designee authorized to recommend a waiver to the Secretary of Labor is set forth in CAM 1301.70.

(a) Insert clause 1352.228-70, Insurance Coverage, in all contracts when:

(1) Government property is involved;

(2) The contract amount is expected to be over the simplified acquisition threshold, and

(3) The contract will require work on a Government installation

(b)

(1) The clause is not required in fixed-price solicitations and contracts if:

(i) Only a small amount of work is required on the Government installation (e.g., a few brief visits per month); or

(ii) All the work on the Government installation is to be performed outside the United States, its possessions and Puerto Rico.

(2) The contracting officer may increase the dollar limits established in the clause when it is determined to be in the best interest of the Government. Prior to increasing the dollar limits the contracting officer shall seek the advice of Procurement Counsel.

(c) Insert clause 1352.228-71, Deductibles Under Required Insurance Coverage - Cost-Reimbursement, in all cost-reimbursement contracts when the clause at 1352.228-70, Insurance Coverage, is used.

(d) Insert clause 1352.228-72, Deductibles Under Required Insurance Coverage - Fixed Price, in all fixed-price contracts when the clause at 1352.228-70, Insurance Coverage, is used.

(e) Insert clauses 1352.228-73 through 1352.228-75, unless otherwise indicated by the specific instructions for their use below, in any contract for the lease of aircraft.

(f) Insert clause 1252.228-73, Loss of or Damage to Leased Aircraft, in any contract for the lease of aircraft, except in the following circumstances:

(1) When the hourly rental rate does not exceed $250 and the total rental cost for any single transaction is not in excess of $2,500:

(2) When the cost of hull insurance does not exceed 10 percent of the contract rate; or

(3) When the lessor's insurer does not grant a credit for uninsured hours, thereby preventing the lessor from granting the same to the Government.

(g) Insert clause 1352.228-74, Fair Market Value of Aircraft, in all aircraft lease/rentals.

(h) The contracting officer shall insert the clause at 1352.228-75, Risk and Indemnities, in any contract for the lease of aircraft when the Government will have exclusive use of the aircraft for a period of less than thirty days.

(i) Insert clause 1352.228-76, Approval of Group Insurance Plans, in all cost reimbursable contracts.

(j) The contractor shall submit the plan to the CO for approval under cost-reimbursement contracts, before buying insurance under a group insurance plan. Any change in benefits provided under an approved plan that can reasonably be expected to increase significantly the cost to the Government shall require similar approval.