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DFARS 228



Part 228-Bonds and Insurance

TABLE OF CONTENTS

SUBPART 228.1--BONDS

228.102 Performance and payment bonds for construction contracts.

228.102-1 General.

228.105 Other types of bonds.

228.106 Administration.

228.106-7 Withholding contract payments.

228.170 Solicitation provision.

SUBPART 228.3--INSURANCE

228.304 Risk-pooling arrangements.

228.305 Overseas workers' compensation and war-hazard insurance.

228.307 Insurance under cost-reimbursement contracts.

228.307-1 Group insurance plans.

228.311 Solicitation provision and contract clause on liability insurance under
cost-reimbursement contracts.

228.311-1 Contract clause.

228.370 Additional clauses.

SUBPART 228.1--BONDS

228.102 Performance and payment bonds for construction contracts.

228.102-1 General.

For Defense Environmental Restoration Program construction contracts entered into pursuant to 10 U.S.C. 2701 and executed between December 5, 1991, and December 31, 1999-

228.105 Other types of bonds.

Fidelity and forgery bonds generally are not required but may be used when-

228.106 Administration.

228.106-7 Withholding contract payments.

228.170 Solicitation provision.

When a requirement for a performance bond or other security is included in a solicitation for dismantling, demolition, or removal of improvements (see FAR 37.300), use the provision at 252.228-7004, Bonds or Other Security. Set a period of time (normally ten days) for return of executed bonds.

SUBPART 228.3--INSURANCE

228.304 Risk-pooling arrangements.

The DoD has established the National Defense Projects Rating Plan, also known as the Special Casualty Insurance Rating Plan, as a risk-pooling arrangement to minimize the cost to the Government of purchasing the liability insurance listed in FAR 28.307-2. Use the plan in accordance with the following guidelines when it provides the necessary coverage more advantageously than commercially available coverage.

TABLE 28-1, INSURANCE RATING PLAN RATING AGREEMENT

 

Special Casualty Insurance Rating Plan

Assignment-Assumption of Premium Obligations

 

    It is agreed that 100 percent* of the return premiums and premium refunds (and dividends) due or to become due the prime contractor under the policies to which the National Defense Projects Rating Plan Endorsement made a part of policy __________________ applies are hereby assigned to and shall be paid to the United States of America, and the prime contractor directs the Company to make such payments to the office designated for contract administration acting for and on account of the United States of America.

 

    The United States of America hereby assumes and agrees to fulfill all present and future obligations of the prime contractor with respect to the payment of 100 percent* of the premiums under said policies.

 

    This agreement, upon acceptance by the prime contractor, the United States of America, and the Company shall be effective from _____________________________

   
 

Accepted_______________________ (Date)

 

__________________________ (Name of Insurance Company)

 

By ____________________________ (Title of Official Signing)

   
 

Accepted_______________________ (Date)

 

United States of America

 

By _________________________ (Authorized Representative)

   
 

Accepted_______________________ (Date)

 

_____________________________________ (Prime Contractor)

 

By _________________________ (Authorized Representative)

*In the event the Government has less than a 100 percent interest in premium funds or dividends, modify the assignment to reflect the percentage of interest and extent of the Government's assumption of additional premium obligation.

TABLE 28-2, AUTOMOBILE INSURANCE POLICY ENDORSEMENT

 

    It is agreed that insurance provided by the policy with respect to the ownership, maintenance, or use of automobiles, including loading and unloading thereof, does not apply to the following as insureds: The United States of America, any of its agencies, or any of its officers or employees.

228.305 Overseas workers' compensation and war-hazard insurance.

228.307 Insurance under cost-reimbursement contracts.

228.307-1 Group insurance plans.

The Defense Department Group Term Insurance Plan is available for contractor use under cost-reimbursement type contracts when approved as provided in department or agency regulations. A contractor is eligible if-

228.311 Solicitation provision and contract clause on liability insurance under cost-reimbursement contracts.

228.311-1 Contract clause.

Use the clause at FAR 52.228-7, Insurance--Liability to Third Persons, in solicitations and contracts, other than those for construction and those for architect-engineer services, when a cost-reimbursement contract is contemplated, unless the head of the contracting activity waives the requirement for use of the clause.

228.370 Additional clauses.

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