28.106-90 -- Review of Bonds and Consents of Surety.
Effective 1 October 1997, all bonds and consents of surety shall be reviewed by the counsel responsible for providing legal advice to the contracting officer.
28.202 -- Acceptability of Corporate Sureties.
(c) The Department of the Treasury provides an electronic bulletin board service for Treasury Circular 570 and updates. The telephone number for the bulletin board is FTS (202) 287-1295. Distribution of the information to contracting activities and offices of the staff judge advocates that cannot access the bulletin board shall be in accordance with HCA instructions. New bonds obtained as required by the FAR shall be promptly forwarded for review in accordance with 28.106-90.
28.203 -- Acceptability of Individual Sureties.
(g) Refer evidence to the local Procurement Fraud Advisor. See AR 27-40, Chapter 8.
28.203-7 -- Exclusion of Individual Sureties.
(d) Forward the D&F justifying acceptance to the HCA. If the HCA concurs, the request and concurrence shall be forwarded through the addressee in 1.290(b)(9) to the debarring official for a determination.
28.204 -- Options in Lieu of Sureties.
28.204-1 -- United States Bonds or Notes.
When a contractor furnishes security in lieu of corporate or individual sureties on bonds, the contracting officer shall forward a certified copy of the receipt for the deposited security and a certified copy of any required power of attorney and agreement to the addressee in 28.106-90(b) with the bond.
(b) When insurance coverage for a contract to be performed outside the United States, its possessions, and Puerto Rico, is not available in the minimum amounts required, the PARC is authorized to approve reductions.
28.304 -- Risk Pooling Arrangements.
(1)
(i) The procedures applicable to the operations of this Plan are contained in Bulletins issued by the Conference Committee On The National Defense Projects Rating Plan, National Council On Compensation Insurance, 750 Park Of Commerce Drive, Boca Raton, FL 33431. The contractor may use a licensed insurance agent or broker as an insurance advisor, subject to the approval of the contracting officer. The advisor shall be required to submit a statement of qualifications containing the information described in Bulletin No. 10 through the contractor to the contracting officer for approval. After the contracting officer approves the insurance advisor, the contractor may enter into a service agreement with the advisor. The service agreement shall include requirements for reporting on services rendered and earned fee.
(ii) When a project or contract does not qualify for the National Defense Projects Rating Plan and the estimated annual premiums are substantial, a commercial retrospective rating plan may be appropriate. If the estimated annual premiums are small, joint insurance with the contractor's commercial operations or special guaranteed cost policies may be advisable. When joint insurance coverage is used, higher limits than those prescribed may be approved. When contract operations are separately insured under a policy which incorporates a retrospective plan (National Defense Projects Rating Plan or Commercial Retrospective Rating Plans A, B, C or D), incurred losses and final premium costs shall be reviewed at the home office of the insurer prior to payment of the final additional premium or receipt of final return premium. The review shall include --
(1) An examination of closed claims to ensure that losses have been properly charged and expenses correctly allocated;
(2) An inspection of open claims to negotiate the allowable reserves; and
(3) Other matters the reviewing officer considers appropriate.
(3) Modify the agreement in DFARS Table 28-1 to reflect the name of the commercial retrospective rating plan when the National Defense Projects Rating Plan is not used, to cover companies that do not pay dividends and to cover other, differing circumstances. Use certified mail -- return receipt requested to send the copies of the insurance rating plan agreement signed by the contractor and the Government to the home office of the insurance company for signature.
28.307 -- Insurance Under Cost-Reimbursement Contracts.
28.307-1 -- Group Insurance Plans.
(a) Prior approval requirement.
(i) Insurance plans shall be approved in accordance with HCA instructions, subject to the following minimum standards for insurance carriers --
(A) The carrier must have an unobligated minimum surplus of $350,000;
(B) In the case of a contract for casualty insurance other than workmen's compensation insurance, the financial responsibility of the carrier must be such that, in a single accident or occurrence, the policy will not expose the carrier to a loss of more than 10 percent of --
(1) Its total capital stock and surplus in the case of a fixed-premium carrier; or
(2) Its net assets in the case of a dividend-paying carrier; and
(C) In the case of workmen's compensation insurance, the carrier must have --
(1) A total capital and surplus of at least $1,000,000 in the case of a fixed-premium carrier; or
(2) At least $1,000,000 of net assets in the case of a dividend-paying carrier. Deviations from these standards may be granted by the PARC in the case of a foreign insurance carrier operating outside the United States if the financial responsibility of the carrier has been established.
(ii) Prior approval of a contractor's insurance program by another Military Department shall be accepted, subject to whatever modification may be appropriate to accommodate the contract being added.
(iii) Coordinate with other Army contracting activities whenever they are involved in approval, negotiation or review of a contractor's insurance program. The contracting officer whose contracts carry the highest premiums shall take the lead unless other mutually acceptable arrangements are made.
(iv) Coordinate with the Military Departments whenever they have an interest in a contractor's insurance program by contacting the following organizations:
(A) For the Navy: Assistant Secretary Of The Navy (Research, Development & Acquisition), Attn APIA-PP, Department Of The Navy, Washington, DC 20350-1000.
(B) For the Air Force: Deputy Assistant Secretary Of The Air Force (Contracting), Attn SAF/AQCO, 1060 Air Force Pentagon, Washington, DC 20330-1060.
28.307-90 -- Insurance for Boiler Inspection Services.
Inspection services may be procured to meet the requirements of AR 420-49, but the purchase of insurance to cover boiler inspection service of Government-owned boilers is not authorized.
28.311 -- Solicitation Provision and Contract Clause on Liability Insurance Under Cost-Reimbursement Contracts.
When required by paragraph (g) of the clause at FAR 52.228-7, Insurance -- Liability to Third Persons, the contracting officer shall immediately notify the Chief, Torts Branch, Army Litigation Center, Office Of The Judge Advocate General, Headquarters, Department Of The Army, Attn DAJA-LTT, 901 North Stuart Street, Suite 400, Arlington, VA 22203-1837, by phone at (703) 696-1620 or DSN 226-1620. When the pertinent papers are received from the contractor, they shall be forwarded to the Chief, Torts Branch, at the address given, with a request to inform the Director, Torts Branch, Civil Division, Department of Justice.