Overview
This section prescribes the specific provisions and clauses that contracting officers must include in solicitations and contracts to manage legal liability protections under the Support Anti-terrorism by Fostering Effective Technologies (SAFETY) Act of 2002. It establishes a framework for notifying offerors whether SAFETY Act protections apply, are pre-qualified, or are subject to pending applications.
Key Rules
- SAFETY Act Not Applicable (52.250-2): Must be inserted if the agency and DHS determine the Act does not apply to the acquisition or if DHS denies a pre-qualification designation notice.
- Block Designation/Certification (52.250-3): Required when DHS has already issued a block designation or certification for the specific technologies being solicited.
- Pre-qualification Designation Notice (52.250-4): Required when DHS has issued a notice specifically pre-qualifying a technology for SAFETY Act protections.
- Use of Alternates:
- Alternate I: Used when the agency authorizes "contingent offers" (offers that are only valid if SAFETY Act protection is obtained).
- Alternate II: Used when the agency allows offers that "presume" SAFETY Act designation/certification will be granted, giving the contracting officer authority to extend application timelines.
- Equitable Adjustment (52.250-5): This clause is mandatory if Alternate II is used and the DHS designation/certification is not finalized prior to the contract award, providing a mechanism to adjust the contract if the status changes.
Practical Implications
- Risk Allocation: These provisions clearly signal to contractors whether the government or the contractor bears the liability risk for anti-terrorism technologies, which directly impacts the offeror's insurance requirements and pricing.
- Post-Award Adjustments: The requirement for the Equitable Adjustment clause ensures that if a contractor's presumed SAFETY Act protection is denied or modified after the contract begins, there is a formal process to address the resulting changes in cost or risk.