[Federal Register Volume 61, Number 196 (Tuesday, October 8, 1996)] [Rules and Regulations] [Pages 52709-52710] From the Federal Register Online via the Government Publishing Office [www.gpo.gov] [FR Doc No: 96-25568] ======================================================================= ----------------------------------------------------------------------- DEPARTMENT OF VETERANS AFFAIRS 48 CFR Parts 837 and 852 RIN 2900-AG67 VA Acquisition Regulation: Service Contracting AGENCY: Department of Veterans Affairs. ACTION: Final rule. ----------------------------------------------------------------------- SUMMARY: This document, with a nonsubstantive change, adopts as a final rule the provisions of a proposal to amend the Department of Veterans Affairs (VA) Acquisition Regulation pertaining to ``SERVICE CONTRACTING'' and ``SOLICITATION PROVISIONS AND CONTRACT CLAUSES.'' The regulation is amended to implement a class deviation from the Federal Acquisition Regulation by establishing a modified clause for indemnification and medical liability insurance requirements applicable to VA contracts. The use of this clause, instead of the Federal Acquisition Regulation clause, is intended to ensure that contractors providing nonpersonal health-care services to VA are able to comply with State statutes and avoid excessive costs. EFFECTIVE DATE: October 8, 1996. FOR FURTHER INFORMATION CONTACT: Wanza Lewis, Acquisition Policy Division (95A), Office of Acquisition and Materiel Management, Department of Veterans Affairs, 810 Vermont Avenue, NW, Washington, DC 20420, (202) 273-8820. SUPPLEMENTARY INFORMATION: On October 22, 1993, we published in the Federal Register (58 FR 54548) a proposal to amend the Department of Veterans Affairs Acquisition Regulation to implement a class deviation from the Federal Acquisition Regulation Section 37.401 and clause at Section 52.237-7. Comments were solicited concerning the proposal for 60 days, ending December 20, 1993. We did not receive any comments. The information presented in the proposed rule document still provides a basis for this final rule. Therefore, based on the rationale set forth in the proposed rule document, we are adopting the provisions of the proposed rule as a final rule without change, except for a nonsubstantive change which removes the designation of the material in Section 852.237-7 as a deviation. The Secretary hereby certifies that this final rule will not have a significant economic impact on a substantial number of small entities as they are defined in the Regulatory Flexibility Act (RFA), 5 U.S.C. 601-612. This final rule would not cause a significant effect on any entities. Therefore, pursuant to 5 U.S.C. 605(b), this amendment is exempt from the initial and final regulatory flexibility analysis requirements of sections 603 and 604. List of Subjects 48 CFR Part 837 Government procurement. 48 CFR Part 852 Government procurement, Reporting and recordkeeping requirements. Approved: September 25, 1996. Jesse Brown, Secretary of Veterans Affairs. For the reasons set forth in the preamble, 48 CFR parts 837 and 852 are amended as set forth below: PART 837--SERVICE CONTRACTING 1. The authority citation for part 837 is revised to read as follows: Authority: 38 U.S.C. 501 and 40 U.S.C. 486(c). 2. Subpart 837.4, section 837.403 is added to read as follows: Subpart 837.4--Nonpersonal Health-Care Services 837.403 Contract clause. The contracting officer shall insert the clause at 852.237-7, Indemnification and Medical Liability Insurance, in lieu of FAR Clause 52.237-7, in solicitations [[Page 52710]] and contracts for nonpersonal health-care services. The contracting officer may include the clause in bilateral purchase orders for nonpersonal health-care services awarded under the procedures in FAR part 13 and (VAAR) 48 CFR part 813. PART 852--SOLICITATION PROVISIONS AND CONTRACT CLAUSES 3. The authority citation for part 852 continues to read as follows: Authority: 38 U.S.C. 501 and 40 U.S.C. 486(c). 4. Section 852.237-7 is added to read as follows: 852.237-7 Indemnification and Medical Liability Insurance. As prescribed in 837.403, insert the following clause: Indemnification and Medical Liability Insurance (October 1996) (a) It is expressly agreed and understood that this is a nonpersonal services contract, as defined in Federal Acquisition Regulation (FAR) 37.101, under which the professional services rendered by the Contractor or its health-care providers are rendered in its capacity as an independent contractor. The Government may evaluate the quality of professional and administrative services provided but retains no control over professional aspects of the services rendered, including by example, the Contractor's or its health-care providers' professional medical judgment, diagnosis, or specific medical treatments. The Contractor and its health-care providers shall be liable for their liability-producing acts or omissions. The Contractor shall maintain or require all health-care providers performing under this contract to maintain, during the term of this contract, professional liability insurance issued by a responsible insurance carrier of not less than the following amount(s) per specialty per occurrence: [Contracting Officer insert the dollar value(s) of standard coverage(s) prevailing within the local community as to the specific medical specialty, or specialties, concerned, or such higher amount as the Contracting Officer deems necessary to protect the Government's interests]. However, if the Contractor is an entity or a subdivision of a State that either provides for self-insurance or limits the liability or the amount of insurance purchased by State entities, then the insurance requirement of this contract shall be fulfilled by incorporating the provisions of the applicable State law. (b) An apparently successful offeror, upon request of the Contracting Officer, shall, prior to contract award, furnish evidence of the insurability of the offeror and/or of all health- care providers who will perform under this contract. The submission shall provide evidence of insurability concerning the medical liability insurance required by paragraph (a) of this clause or the provisions of State law as to self-insurance, or limitations on liability or insurance. (c) The Contractor shall, prior to commencement of services under the contract, provide to the Contracting Officer Certificates of Insurance or insurance policies evidencing the required insurance coverage and an endorsement stating that any cancellation or material change adversely affecting the Government's interest shall not be effective until 30 days after the insurer or the Contractor gives written notice to the Contracting Officer. Certificates or policies shall be provided for the Contractor and/or each health- care provider who will perform under this contract. (d) The Contractor shall notify the Contracting Officer if it, or any of the health- care providers performing under this contract, change insurance providers during the performance period of this contract. The notification shall provide evidence that the Contractor and/or health-care providers will meet all the requirements of this clause, including those concerning liability insurance and endorsements. These requirements may be met either under the new policy, or a combination of old and new policies, if applicable. (e) The Contractor shall insert the substance of this clause, including this paragraph (e), in all subcontracts for health-care services under this contract. The Contractor shall be responsible for compliance by any subcontractor or lower-tier subcontractor with the provisions set forth in paragraph (a) of this clause. (End of Clause) [FR Doc. 96-25568 Filed 10-7-96; 8:45 am] BILLING CODE 8320-01-P