Chip13 Posted September 9, 2014 Report Share Posted September 9, 2014 In 52.228-9 Cargo Insurance, the phrase "at the Contractor's expense" is used in the first sentence of the clause. I believe that phrase to mean, as did the DCAA auditor I spoke with, that the cost of the cargo insurance is an unallowable expense in a contract that includes the clause. I have never dealt with this clause in the past and am wondering if anyone else has any experience with it and if they agree with my interpretation? Link to comment Share on other sites More sharing options...
here_2_help Posted September 9, 2014 Report Share Posted September 9, 2014 It it is an unallowable expense, you will find it in the Part 31 Cost Principles or the supplementary Cost Principles of the executive agency/department that is doing the buying. I'm going to be surprised if you find it. H2H Link to comment Share on other sites More sharing options...
joel hoffman Posted September 9, 2014 Report Share Posted September 9, 2014 In 52.228-9 Cargo Insurance, the phrase "at the Contractor's expense" is used in the first sentence of the clause. I believe that phrase to mean, as did the DCAA auditor I spoke with, that the cost of the cargo insurance is an unallowable expense in a contract that includes the clause. I have never dealt with this clause in the past and am wondering if anyone else has any experience with it and if they agree with my interpretation? I don't think that the cost of such government required insurance is an unallowable expense. Some other clauses, e.g., 52.228-10 -- Vehicular and General Public Liability Insurance and 52.228-5 -- Insurance -- Work on a Government Installation, also use the phrase "at the Contractor's expense". I would think that if the Government meant "at no expense to the Government" or that it were specifically unallowable, it would say such. I think that the phrase simply means that the Contractor must personally pay the premiums or policy expense. I suggest asking the auditor where it is unallowable in Subpart 31.2 if the government directs the Contractor to purchase the insurance. See, for instance, 31.205-19 -- Insurance and Indemnification for some details and conditions. Link to comment Share on other sites More sharing options...
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