Overview
This section prescribes the specific conditions and procedural requirements under which a Contracting Officer (CO) may authorize a cost-reimbursement contractor to utilize Interagency Fleet Management System (IFMS) vehicles and related services. It focuses on ensuring such use is economical, properly insured, and strictly limited to official contract performance.
Key Rules
- Eligibility and Justification: Authorization is limited to cost-reimbursement contractors and requires the CO to determine that use will achieve contractual objectives and demonstrable cost savings.
- Insurance Mandate: Contractors must obtain motor vehicle liability insurance that protects both the contractor and the Government against third-party claims for bodily injury and property damage.
- Compliance and Oversight: The CO must establish periodic checks for exclusive contract use, and the contractor must implement internal penalties for employees who misuse Government vehicles.
- Financial Liability: The contractor must provide a written statement agreeing to assume all costs for vehicle use not related to contract performance without the right to Government reimbursement.
- Administrative Requirements: Authorizations must be in writing, cite the specific contract number, define the duration and limitations of use, and instruct the contractor on applicable FAR policies.
- Subcontractor Access: Subcontractors can only receive authorization through the prime contractor, subject to the prime contractor's and the CO's approval.
Practical Implications
- Cost Efficiency vs. Risk: While utilizing the IFMS can significantly lower travel and logistics costs for a project, it introduces a higher administrative burden for the Government regarding oversight and potential liability for accidents.
- Strict Internal Controls: Contractors must maintain rigorous logs and disciplinary policies to prevent unauthorized vehicle use, as they are financially responsible for any non-contract-related expenses.