[Code of Federal Regulations]
[Title 48, Volume 5]
[Revised as of October 1, 2007]
From the U.S. Government Printing Office via GPO Access
[CITE: 48CFR852.237-71]

[Page 256]
 
            TITLE 48--FEDERAL ACQUISITION REGULATIONS SYSTEM
 
                CHAPTER 8--DEPARTMENT OF VETERANS AFFAIRS
 
Sec. 852.237-71  Indemnification and insurance (vehicle and aircraft 

service contracts).

    (a) Contracts for vehicle and aircraft services will utilize the 
following clause as provided in 828.306.

                Indemnification and Insurance (APR 1984)

    (a) Indemnification. The contractor expressly agrees to indemnify 
and save the Government, its officers, agents, servants, and employees 
harmless from and against any and all claims, loss, damage, injury, and 
liability, however caused, resulting from, arising out of, or in any way 
connected with the performance of work under this agreement. Further, it 
is agreed that any negligence or alleged negligence of the Government, 
its offficers, agents, servants, and employees, shall not be a bar to a 
claim for indemnification unless the act or omission of the Government, 
its officers, agents, servants, and employees is the sole, competent, 
and producing cause of such claims, loss, damage, injury, and liability. 
At the option of the contractor, and subject to the approval by the 
contracting officer of the sources, insurance coverage may be employed 
as guaranty of indemnification.
    (b) Insurance. Satisfactory insurance coverage is a condition 
precedent to award of a contract. In general, a successful bidder must 
present safisfactory evidence of full compliance with State and local 
requirements, or those below stipulated, whichever are the greater. More 
specifically, workman's compensation and employer's liability coverage 
will conform to applicable State law requirements for the service 
contemplated, whereas general liability and automobile liability of 
comprehensive type, shall in the absence of higher statutory minimums, 
be required in the amounts per vehicle used of not less than $200,000 
per person and $500,000 per occurrence for bodily injury and $20,000 per 
occurrence for property damage. State approved sources of insurance 
coverage ordinarily will be deemed acceptable to the Veterans' 
Administration installation, subject to timely certifications by such 
sources of the types and limits of the coverages afforded by the sources 
to the bidder. (In those instances where airplane service is to be used, 
substitute the word ``aircraft'' for ``automobile'' and ``vehicle'' and 
modify coverage to require aircraft public and passenger liability 
insurance of at least $200,000 per passenger and $500,000 per occurrence 
for bodily injury, other than passenger liability, and $200,000 per 
occurrence for property damage. Coverage for passenger liability bodily 
injury shall be at least $200,000 multiplied by the number of seats or 
passengers, whichever is greater.)

                             (End of clause)

    (b) Exceptions. The provisions of this 852.237-71 do not apply to 
emergency or sporadic ambulance service authorized by VA Manual MP-1, 
Part II, Chapter 3: Provided, That such service is not used solely for 
the purpose of avoiding entering into a continuing contract. Provided 
further, That such services will be obtained from firms known to carry 
insurance coverage in accordance with State or local requirements.

[49 FR 12629, Mar. 29, 1984, as amended at 50 FR 794, Jan. 7, 1985]