[Federal Register Volume 59, Number 66 (Wednesday, April 6, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-8145]


[[Page Unknown]]

[Federal Register: April 6, 1994]



-----------------------------------------------------------------------

48 CFR Parts 28 and 52

[FAR Case 92-14]

 

Federal Acquisition Regulation; Insurance--Liability to Third 
Persons

AGENCIES: Department of Defense (DOD), General Services Administration 
(GSA), and National Aeronautics and Space Administration (NASA).

ACTION: Proposed rule.

-----------------------------------------------------------------------

SUMMARY: The Civilian Agency Acquisition Council and the Defense 
Acquisition Regulations Council are proposing to delete the 
prescriptive language in the Federal Acquisition Regulation (FAR), 
particularly at ``Solicitation provision and contract clause on 
liability insurance under cost-reimbursement contracts''. This 
regulatory action was not subject to Office of Management and Budget 
review pursuant to Executive Order No. 12866 dated September 30, 1993.

DATES: Comments should be submitted on or before June 6, 1994 to be 
considered in the formulation of a final rule.

ADDRESSES: Interested parties should submit written comments to: 
General Services Administration, FAR Secretariat (VRS), 18th & F 
Streets, NW, room 4037, Washington, DC 20405.
    Please cite FAR case 92-14 in all correspondence related to this 
case.

FOR FURTHER INFORMATION CONTACT:
Mr. Edward Loeb at (202) 501-4547 in reference to this FAR case. For 
general information, contact the FAR Secretariat, room 4037, GS 
Building, Washington, DC 20405, (202) 501-4755. Please cite FAR case 
92-14.

SUPPLEMENTARY INFORMATION:

A. Background

    The FAR language proposed for deletion at 28.311-1 applies only to 
cost-reimbursement contracts for research and development awarded to 
state agencies or charitable institutions that claim partial or total 
immunity from tort liability. For these entities, Alternates I and II 
of 52.228-7, Insurance--Liability to Third Persons, limit the 
contract's insurance requirements and the Government's obligation to 
indemnify for third party liability. The Councils believe that the 
current language is obsolete.

B. Regulatory Flexibility Act

    The proposed rule is not expected to have a significant economic 
impact on a substantial number of small entities within the meaning of 
the Regulatory Flexibility Act, 5 U.S.C. 601, et seq., because the 
language proposed for deletion applies only to cost-reimbursement 
contracts for research and development that are awarded to entities 
which, by virtue of their status as either an agency of the state or as 
a charitable institution, claim partial or total immunity from tort 
liability under such contracts. These entities are believed to be few 
in number. An Initial Regulatory Flexibility Analysis has, therefore, 
not been performed. Comments from small entities concerning the 
affected FAR subpart will also be considered in accordance with section 
610 of the Act. Such comments must be submitted separately and should 
cite 5 U.S.C. 601, et seq. (FAR case 92-14), in correspondence.

C. Paperwork Reduction Act

    The Paperwork Reduction Act does not apply because the proposed 
changes to the FAR do not impose recordkeeping or information 
collection requirements, or collections of information from offerors, 
contractors, or members of the public which require the approval of the 
Office of Management and Budget under 44 U.S.C. 3501, et seq.

List of Subjects in 48 CFR Parts 28 and 52

    Government procurement.

    Dated: March 30, 1994.
Albert A. Vicchiolla,
Director, Office of Federal Acquisition Policy.

    Therefore, it is proposed that 48 CFR parts 28 and 52 be amended as 
set forth below:
    1. The authority citation for 48 CFR parts 28 and 52 continues to 
read as follows:

    Authority: 40 U.S.C. 486(c); 10 U.S.C. chapter 137; and 42 
U.S.C. 2473(c).

PART 28--BONDS AND INSURANCE


28.311-1  [Removed and redesignated]

    2. Section 28.311-1 is removed.


28.311-2  [Redesignated and amended]

    3. Section 28.311-2 is redesignated as section 28.311-1 and amended 
by removing the last two sentences.


28.311-3  [Redesignated]

    4. Section 28.311-3 is redesignated as section 28.311-2.

PART 52--SOLICITATION PROVISIONS AND CONTRACT CLAUSES


52.228-6  [Removed and reserved]

    5. Section 52.228-6 is removed and reserved.


52.228-7  [Amended]

    6. Section 52.228-7 is amended in the introductory paragraph by 
removing the citation ``28.311-2'' and inserting in its place ``28.311-
1''; in paragraph (a)(1) of the clause by removing the words ``or in 
paragraph (h) of this clause (if the clause has a paragraph (h)),''; in 
paragraph (c) introductory text by removing the words ``Except as 
provided in paragraph (h) of this clause (if the clause has a paragraph 
(h)), the'' and inserting in its place the word ``The''; and by 
removing Alternates I and II at the end of the clause.


52.245-7  [Amended]

    7. Section 52.245-7 is amended in the first sentence of paragraph 
(j) by removing the words ``in the clause at FAR 52.228-6, Insurance--
Liability to Third Persons, or''.


52.245-10  [Amended]

    8. Section 52.245-10 is amended in the first sentence of paragraph 
(f) by removing the words ``in the clause at FAR 52.228-6, Insurance--
Liability to Third Persons or''.

[FR Doc. 94-8145 Filed 4-5-94; 8:45 am]
BILLING CODE 6820-34-M