Background:
RFP contract types are FFP, T and M, and Cost Reimbursable for CAP/CAS and transportation ONLY.
FAR 28.307-2(d) [insurance Under CR Contracts] Aircraft public and passenger liability. When aircraft are used in connection with performing the contract [referring to cost reimbursable] the CO shall require aircraft public and passenger liability insurance.
RFP includes FAR 252.228-7001, Ground and Flight Risk (Jun 2010)
252.228-7001© Government as self-insurer. Subject to the conditions in paragraph (d) of this clause, the Government self-insures and assumes the risk of damage to, or loss or destruction of aircraft “in the open,” during “operation,” and in “flight,” except as may be specifically provided in the Schedule as an exception to this clause. The Contractor shall not be liable to the Government for such damage, loss, or destruction beyond the Contractor’s share of loss amount under the Government’s self-insurance.
The contract effort is manpower augmentation. No contractor tools, or manuals, etc. And rarely is CAP/CAS used. Transportation yes, CAP/CAS no. The government is not at increased risk that would require public and passenger liability. The only reason the liability requirement is included is "FAR said to".
In my brain, these two clauses conflict. Has anyone had any history with this?