Overview
This section mandates the inclusion of a specific liability and insurance clause in all federal solicitations and contracts involving the leasing of motor vehicles.
Key Rules
- Mandatory Clause: The Contracting Officer must insert FAR clause 52.228-8, Liability and Insurance—Leased Motor Vehicles.
- Applicability: This requirement applies specifically to contracts and solicitations for the leasing of motor vehicles as governed by FAR subpart 8.11.
- Regulatory Alignment: This section ensures that insurance requirements for leased vehicles are standardized across federal acquisitions.
Practical Implications
- Contractor Compliance: Companies bidding on vehicle lease contracts must be prepared to meet the specific insurance and liability standards outlined in the prescribed clause.
- Risk Mitigation: By including this clause, the government ensures clear accountability and risk allocation regarding vehicle damage or third-party liability during the lease term.