Overview
FAR 28.304 authorizes federal agencies to establish risk-pooling arrangements that leverage private insurance industry expertise to manage safety engineering and claims processing efficiently. These arrangements are intended to reduce administrative burdens and minimize overall costs to the Government.
Key Rules
- Discretionary Authority: Agencies have the permissive authority to create and implement risk-pooling structures.
- Service Utilization: The arrangements must be designed to use insurance industry services specifically for safety engineering and the handling of claims.
- Cost Efficiency: A primary requirement is that these arrangements must operate at a minimum cost to the Government.
- Centralized Management: The responsible agency is mandated to appoint a single manager or point of contact to oversee each specific risk-pooling arrangement.
Practical Implications
- Contractors operating under these arrangements benefit from streamlined safety protocols and a centralized claims process managed by industry experts rather than disparate agency offices.
- The requirement for a single point of contact ensures administrative consistency and clear communication for contractors when navigating insurance-related requirements on large-scale or high-risk projects.