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  • Question

    Does 252.228-7001 provide any protection for contractor owned and operated aircraft ? If so, how is it applied when a contractor owned aircraft is destroyed / damaged or a third party claim is pursued against the contractor?


    Answer

    DFARS 252.228-7001 provides the Government's self-insurance protection for contractor owned/operated aircraft, subject to contractor compliance with the conditions in paragraph (d) of the subject clause and the contractor's deductible in paragraph (f). Paragraph (h) goes on to prohibit the contractor from including any costs for insurance as a result. Paragraph (m), Subcontracts, mandates that all "requirements" of DFARS 252.228-7001 be included in subcontracts, but those requirements apply to subcontractor "possession and control" (see paragraph (g)). I see no indication that the Government's self-insurance flows down to subcontractor-owned aircraft. 

    As for the specifics of how a claim under DFARS 252.228-7001 is actually processed should damage to aircraft occur, I recommend you consult your organization's legal counsel for advice and procedures.

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