DOD To Exempt More Contractors From Insuring Assets

Law360, New York (April 19, 2011, 6:01 PM EDT) -- The U.S. Department of Defense issued a proposed rule Tuesday that would eliminate a loophole requiring some contractors to insure property sold to the government.

The proposed amendment to the Defense Federal Acquisition Regulation Supplement would extend the government's self-insurance policy to cover fixed-price contracts awarded based on factors besides price.

The federal government generally self-insures against contractor loss of government property, but current regulations contain an exception for "negotiated fixed-price contracts awarded on a basis other than submission of certified cost or pricing data." For...
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