I know there is language in the FAR regarding bailment responsibility when the Government issues property that will reside with the contractor but is there any language for the reverse situation? In the contract we are planning, we will have contractor equipment residing on Government premises but I cannot find any language in the FAR or DFARS that speaks to this situation. Do you have any suggestions for language I could use to ensure the contractor feels protected when their equipment is residing with the Government?
First - Your Statement of Work (SOW) will have to describe the environment in which the contractor-owned equipment will be occupying as there are no general FAR/DFARS clauses that address your rather vague, non-specific desire, “to ensure the contractor feels protected…”
For instance, here are some of the elements that your SOW might/should probably discuss:
· Where specifically will the contractor-owned equipment be housed (Installation, facility/building, room number, etc.)
· What is the security afforded/provided by each of the above (armed guards, cypher locks, personal ID?)
· Who specifically will physical control the contractor-owned equipment (contractor, Government, both & name of individual?)
· Who will have physical access to this contractor-owned equipment (contractor only, Government only, a mix?)
· What personnel will operate the equipment (contractor only Government only, a mix?)
· What precautions should the contractor take relative to their equipment (tag it as contractor-owned, maintain an inventory, periodically account for it?)
Second - Since you’re contemplating a FFP contract instrument overall risk falls on the contractor, unless those otherwise specifically identified and excepted by the Government in the contract.
You are required to insert FAR Clause 52.228-5 -- Insurance -- Work on a Government Installation in the contract. Paragraph (a) states the following:
(a) The Contractor shall, at its own expense, provide and maintain during the entire performance of this contract, at least the kinds and minimum amounts of insurance required in the Schedule or elsewhere in the contract.
In conclusion the best way that you can “ensure the contractor feels protected,” is to properly describe the environment for contractor-owned equipment in the SOW and identify what insurance coverage you expect the contractor to have/maintain for mutual protection!
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