Overview
This section prescribes the mandatory and discretionary use of FAR clause 52.228-5, which requires contractors to maintain specific insurance coverage when performing work on a government-owned facility.
Key Rules
- Mandatory Inclusion: The Contracting Officer (CO) must include clause 52.228-5 in fixed-price solicitations and contracts that exceed the simplified acquisition threshold and require performance on a government installation.
- Exemptions: The clause is generally omitted if:
- The work on the installation is minimal (e.g., only a few brief visits per month).
- The work is performed entirely outside the United States and its outlying areas.
- Discretionary Authority: The CO retains the authority to include the clause even when the exemptions for minimal work or foreign performance apply, provided it is in the government's interest.
Practical Implications
- Contractors must ensure their insurance premiums—including workers' compensation, general liability, and automobile insurance—are accurately reflected in their fixed-price proposals when working on-site.
- For contracts involving limited site visits or OCONUS performance, contractors should verify whether the CO has exercised discretionary authority to include the clause, as this significantly impacts compliance costs and liability requirements.