Page images
PDF
EPUB

INDEMNIFICATION () The Contractor shall indemnify and hold the Government harmless for any and

sent harmless for any and all losses, damages, or liability on account of personal injury, death, or property damage, or claims for personal injury, death, or property damage of any nature whatsoever and by whomsoever made, arising out of the activities of the Contractor, his employees, subcontractors, or agents under the contract. For the purpose of fulfilling his obligations under this paragraph, the Contractor shall procure and maintain during the term of this contract and any extension thereof liability insurance in form satisfactory to the Contracting Officer by an insurance company which is acceptable to the Contracting Officer. The named insured parties under the policy shall be the Contractor and the United States of America. The amounts of the insurance shall be not less than as follows:

to all contracts involving use of aircraft with contractor or Governmentfurnished pilot except for one-time charters when the Government exposure is minimal and time limitations are present.

(c) Clauses. (1) The following clause shall be inserted in all contracts for operation of aircraft with contractorfurnished pilot:

RISK AND INDEMNITIES The Contractor hereby agrees to indemnify and hold harmless the Government, its officers and employees from and against all claims, demands, damages, liabilities, losses, suits and judgments (including all costs and expenses incident thereto) which may be suffered by, accrue against, be charged to or recoverable from the Government, its officers and employees by reason of injury to or death of any person other than officers, agents, or employees of the Government or by reason of damage to property of others of whatsoever kind (other than the property of the Government, its officers, agents or employees) arising out of the operation of the aircraft. In the event the Contractor holds or obtains insurance in support of this covenant, a Certificate of Insurance shall be delivered to the Contracting Officer.

(End of Clause) (2) For contracts involving the use of aircraft with Government-furnished pilot where the Government does not have a property interest, insert the following clause:

[blocks in formation]

These amounts to be set by the contracting officer. (b) Each policy or certificate evidencing the insurance shall contain an endorsement which provides that the insurance company will notify the Contracting Officer 30 days prior to the effective date of any cancellation or termination of the policy or certificate or any modification of the policy or certificate which adversely affects the interest of the Government in such insurance. The notice shall be sent by registered mail and shall identify this contract, the name and address of the contracting office, the policy and the insured.

(c) Prior to the commencement of work hereunder the Contractor shall furnish the Contracting Officer with acceptable evi

ce showing that the insurance coverage described in this clause has been obtained. (35 FR 290, Jan. 8, 1970, as amended at 41 FR 8972, Mar. 2, 1976. Redesignated and amended at 46 FR 61469, Dec. 17, 1981)

8 14-10.401-50 Insurance requirements for

aircraft services contracts. (a) Policy. It is the policy of the Department to establish minimum insurance requirements for certain types of aircraft services contracts in order to protect the Government and its contractors. These requirements are contained in the clauses set forth under (c) below and are in accordance with FPR 1-10.301.

(b) Applicability. The clauses prescribed by this section are applicable

LIABILITY FOR LOSS OR DAMAGE (a) The Contractor shall indemnify and hold the Government harmless from any and all loss or damage to the aircraft furnished under this contract except as provided in paragraph (d) below. For the purpose of fulfilling its obligation under this clause, the Contractor shall procure and maintain during the term of this contract, and any extension thereof, hull insurance acceptable to the Contracting Officer. The Contractor's insurance coverage shall apply to pilots furnished by the Government who operate the aircraft. The contractor may request a list of Government pilots by name and qualification who are potential pilots.

(b) Prior to the commencement of work hereunder, the Contractor shall furnish to the Contracting Officer a copy of the insurance policy or policies or a certificate of insurance issued by the underwriter(s) showing that the coverage required by this clause has been obtained.

[ocr errors]

(c) Each policy or certificate evidencing the insurance shall contain an endorsement which provides that the insurance company will notify the Contracting Officer 30 days prior to the effective date of any cancellation or termination of any policy or certificate or any modification of a policy or certificate which adversely affects the interests of the Government in such insurance. The notice shall be sent by registered mail and shall identify this contract, the name and address of the contracting office, the policy, and the insured.

(d) If the aircraft is damaged or destroyed while in the custody and control of the Government, the Government will reimburse the Contractor for the deductible stipulated in the insurance coverage (if any) as follows:

(1) In-Motion Accidents—Up to 5% of the current insured value of the aircraft stated in the policy, or $10,000.00, whichever is less.

(2) Not In-Motion Accidents-Up to $250.00 per accident. Such reimbursement shall not be made, however, for loss or damage to the aircraft resulting from (1) normal wear and tear, (2) negligence or fault in maintenance of the aircraft by the Contractor, or (3) a defect in construction of the aircraft or component thereof.

(e) If damage to the aircraft is established to be the fault of the Government, rental payments to the Contractor during the repair period will be made as set forth else where in this contract. The Government may, at its option, make necessary repairs or return the aircraft to the Contractor for repair. In the event the aircraft is lost, destroyed, or damaged so extensively as to be beyond repair, no rental payment will be made to the Contractor thereafter.

(f) Any failure to agree as to the responsiblity of the Government or the Contractor under this clause shall, after a final finding and determination by the Contracting Offi. cer, be considered a dispute within the meaning of the “Disputes" clause of this contract.

(End of Clause] (3) For contracts involving the use of aircraft with Government-furnished pilot where the Government has a property interest (e.g., lease with purchase option) insert the following clause:

aircraft by the contractor, or (3) loss resulting from a latent defect in the construction of the aircraft or a component thereof.

(b) In the event of damage to the aircraft, the Government may, at its option, make the necessary repairs with its own facilities, or by contract, or pay the Contractor the reasonable cost of repair of the aircraft If damage to the aircraft is established to be the fault of the Government, rental payments to the Contractor during the repair period will be made as set forth elsewhere in this contract.

(c) In the event the aircraft is lost, destroyed, or damaged so extensively as to be beyond repair, no rental payment will be made to the Contractor thereafter, but the Government will pay to the Contractor a sum equal to the fair market value of the aircraft just prior to such loss, destruction, or extensive damage, less the salvage value of the aircraft.

(d) The Contractor certifies that the contract price does not include any cost attributable to insurance or to any reserved fund it has established to protect its interests in or use of the aircraft, regardless of whether or not the insurance coverage applies for the period during which the Government has possession of the aircraft. If, in the event of loss or damage to the aircraft, the Contractor receives compensation for such loss or damage, in any form, from any source, the amount of such compensation shall be credited to the Government in de. termining the amount of the Government's liability under this clause; except that this shall not apply to proceeds of insurance received solely as an advance of insurance pending determination of Government liability, or for an increment of value of the aircraft beyond the value for which the Government is responsible.

(e) In the event of loss or damage, the Government shall be subrogated to all rights of recovery by the Contractor against third parties for such loss or damage and such rights shall be immediately assigned to the Government. Except as the Contracting Officer may permit in writing, the Contractor shall neither release nor discharge any third party from liability for such loss or damage nor otherwise compromise or adversely affect the Government's subrogation or other rights hereunder. The Contractor shall cooperate with the Government in any suit or action undertaken by the Government against any such third party.

(f) Any failure to agree as to the responsi. bility of the Government or the Contractor under this clause shall, after a final finding and determination by the Contracting Office, be considered a dispute within the meaning of the “Disputes" clause of this contract.

LIABILITY FOR LOSS OR DAMAGE (PROPERTY

INTEREST) (a) The Government assumes all risk and liability for damage to or loss of the aircraft for the term of this contract, while the air craft is in the Government's possession, except for (1) normal wear and tear to the aircraft, or (2) loss which occurs as a result of negligence or fault in maintenance of the

(End of Clause)

(46 FR 61470, Dec. 17, 1981)

PART 14-11-FEDERAL, STATE, AND

LOCAL TAXES

Subpart 14-11.3—State and Local

Taxes

(a) DI-83, Notice of Assignment. This form shall be used to provide appropriate notice of assignment of payments under contract as provided in $ 14-30.704 of this chapter.

(b) DI-84, Instrument of Assignment. This form shall be used to make assignment of payments due under contracts as provided in § 14-30.704 of this chapter.

(c) DI-137, Release of Claims. This form shall be used to obtain a release of claims under contracts as provided in § 14-1.350 of this chapter. (5 U.S.C. 301) (46 FR 7986, Jan. 26, 1981)

$ 14-11.302 Applicability.

The clauses prescribed for use in fixed-price construction contracts in States with sales, excise, and use taxes may be found in § 14-7.650-5 of this chapter. (Sec. 205(c), 63 Stat. 390; 40 U.S.C. 486(c)) (41 FR 8975, Mar. 2, 1976; 41 FR 11174, Mar. 17, 1976)

PART 14-17-EXTRAORDINARY

CONTRACTUAL ACTIONS TO FA-
CILITATE THE NATIONAL DEFENSE

[blocks in formation]

Subpart 14-16.7—Forms for Negotiat

ed Architect-Engineer Contracts § 14-16.703 Terms, conditions and provi.

sions All contracts for architect-engineer services shall contain the “Key Personnel” clause prescribed under FPR § 1-7.304-6. (Sec. 205(c), 63 Stat. 390; 40 U.S.C. 486(c), 5 U.S.C. 301) (46 FR 61471, Dec. 17, 1981)

Subpart 14-17.1–General $ 14-17.101 Authority.

The Assistant Secretary-Policy, Budget and Administration must approve in advance any actions taken pursuant to FPR 1-17.103. The Secretary must approve any provision for the Government to indemnify a Contractor beyond the amount of the contract for liability to third persons as provided under Executive Order 10789, as amended. Approval of such an indemnification provision must be obtained prior to issuance of the solicitation.

Subpart 14-16.8—Miscellaneous

Forms

$ 14-16.850 Department of the Interior

forms. The following Department of the Interior forms will be used as indicated, and are stocked as a supply item in Storage and Shipping, Office of Administrative Services, Department of the Interior, Washington, D.C. 20240.

8 14-17.150 Policy.

It is the policy of the Department of the Interior to include the indemnification provision set forth in FPR 17.204-5 only in contracts which facilitate the national defense and are for products or services which entail risks that are unusually hazardous or nuclear in nature. For all other contracts requiring insurance, the clause set

[blocks in formation]

Subpart 14-18.6—Buy American Act

Subpart 14-18.6—Buy American Act 14-18.604 Invitation provision.

§ 14-18.604 Invitation provision. Subpart 14-18.1-General Provisions The provision set forth under FPR

1-18.604 shall be used in all solicita§ 14-18.150 Prohibition against use of tions for affected construction work lead-based paint.

(except for contracts executed on (a) Policy. The Lead-Based Paint Standard Form 19) with the following Poisoning Prevention Act, (42 U.S.C. modifications: 4831), as amended by the National

: (a) At the end of paragraph (a) of Consumer Health Information and the provision. list the excepted arti. Health Promotion Act of 1976 (Sec.

cles, materials, and supplies set forth 204, Pub. L. 94-317 (42 U.S.C. 4831)),

under IPR 14-6.105. prohibits the use of lead-based paint

(b) At the end of paragraph (b)(2)(i) in Federal or federally-assisted con

uction or rehabilitation of residen. of the provision, add the following: tial structures. Implementing regulations of the Secretary of Housing and

ADDITIONAL NONDOMESTIC CONSTRUCTION Urban Development under 24 CFR

MATERIALS COST COMPARISON Part 35 requires agencies to include appropriate provisions in contracts or

Quanti Cost Identification of material

ty (dollars) subcontracts for construction or rehabilitation of residential structures.

Item 1: (b) Definitions. As used in this sec

Nondomestic materials... tion, “residential structure” means Comparable domestic material ...... any house, apartment, or structure in Item 2: tended for human habitation includ.

Nondomestic material .......... ing any institutional structure where

Comparable domestic material ...

Totals:. persons reside such as orphanage, boarding school dormitory, day care Delivered to construction site. center, or extended care facility. (c) Procedures. The following provi

(c) Add the following statement to sion shall be included in all solicita- the end of paragraph (b)(3): “Howey. tions and contracts awarded for con er, unless the bidder/offeror specifistruction or rehabilitation of residen cally states that alternate bid or protial structures:

posal prices are being submitted for

specific items of the bid schedule PROHIBITION AGAINST USE OF LEAD-BASED

(based on prices listed for comparable PAINT

domestic materials), the bid or proposNo lead-based paint containing more than

al will be evaluated only on the basis .5 of 1 percent lead by weight (calculated as lead metal) in the total nonvolatile content

of nondomestic construction materi. of the paint, or the equivalent measure of als. lead in the dried film of paint already applied, or both, or with respect to paint man

(Sec. 205(c), 63 Stat. 390; 40 U.S.C. 486(c), 5 ufactured after June 23, 1977, no lead-based

U.S.C. 301) paint containing more than .06 of 1 percent (46 FR 61471, Dec. 17, 1981)

[39 FR 12103, Apr. 3, 1974, as amended at 46 PART 14–19—TRANSPORTATION

FR 61471, Dec. 17, 1981)
Subpart 14-19.1-General

PART 14-30—CONTRACT FINANCING Sec. 14-19.108 Ocean transportation,

Subpart 14-30.4—Advance Payments 14-19.108-50 Contractor compliance.

Sec.
Subpart 14-19.1-General

14-30.414 Agreement for special bank ac

count and contract provisions.

14-30.414-2 Contract provisions for ad$14-19.108 Ocean transportation.

vance payments. (5 U.S.C. 301) [43 FR 59842 Dec. 22, 1978)

Subpart 14-30.7—Assignment of Claims.

14-30.704 Forms for assignment and notice $ 14–19.108-50 Contractor compliance.

of assignment. Concurrent with the award of any AUTHORITY: Sec. 205(c), 63 Stat. 390; 40 contract involving shipment by ocean U.S.C. 486(c), 5 U.S.C. 301. vessel from or to a foreign country, the contracting officer shall formally

Subpart 14-30.4—Advance Payments notify the contractor of the specific requirements of the “Use of U.S. Flag

§ 14-30.414 Agreement for special bank Commercial Vessels" clause set forth under FPR 1-19.108-2. The notifica

account and contract provisions. tion shall include a statement that

[46 FR 61471, Dec. 17, 1981) failure to comply with the provisions of this clause may result in a determi- $ 14-30.414-2 Contract provisions for ad. nation of nonresponsibility on future

vance payments. Government procurement require

(a) For contracts, and modifications ments.

where a special bank account agree(Sec. 205(c), 63 Stat. 390; 40 U.S.C. 486(c), 5 ment is not required for advance payU.S.C. 301)

ments (see FPR 1-30.413), the contract [46 FR 61471, Dec. 17, 1981)

provision under FPR 1-30.414-2 shall

be used as modified by paragraph (c) PART 14-26-CONTRACT

of this section. MODIFICATIONS

(b) For contracts and modifications using the letter of credit method of fi

nancing (see FPR 1-30.408-1), the conSubpart 14-26.4—Novation and

tract provision under FPR 1-30.414-2 Change of Name Agreements

shall be used as modified by para$ 14-26.402 Agreement to recognize a suc

graph (c) of this section.

(c) The suggested contract provi. cessor in interest.

sions of $ 1-30.414-2 of this title may For protection of Government rights be modified, under the circumstances in accrual of inventions, patents and set forth in paragraphs (a) and (b) of data, the novation agreement form set this section, as follows: forth under FPR $ 1-26.402(e) shall be (1) Paragraphs (b), (g), and (h) of amended by adding the following item $ 1-30.414-2 will be deleted. 10 to the "Now Therefore" section of (2) In paragraph (c) of $ 1-30.414-2 the agreement:

including the alternate paragraph (c) 10. The Transferor agrees that any rights

for cost-reimbursement contracts, the in inventions, patents, and data which

first two lines will be revised to read accrue to the Government or to third party

"The funds advanced will be used by beneficiaries under the contracts between

the * * *." the Transferor and the Government shall (3) In paragraph (d) of § 1-30.414-2, not be diminished as a result of the transfer the third sentence will be revised to instruments or this agreement.

read “Failure of the contractor to (Sec. 205(c), 63 Stat. 390 (40 U.S.C. 486(c), 5 repay such part of the unliquidated U.S.C. 301)

balance of advance payments when so

« PreviousContinue »