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Contracting Officer Liability
By Ralph Broome on Wednesday, September 13, 2000 - 09:29 am:

I have heard that it is a not such a bad idea for Contracting Officers to protect themselves against certain types of legal actions. Specifically, I believe I was told that K.O.'s need to protect themselves from possible law suits by carrying a certain type of insurance. Is this true? Can a K.O. be named in a law suit under a federal contract? Does not the Government protect it's own agents when those agents are acting on it's behalf? I'm very curious about this. Also, if this is true, does anyone have any recommendations for an insurer, the amount, and the type of insurance that should be obtained? Thanks.


By Vern Edwards on Wednesday, September 13, 2000 - 11:03 am:

Ralphe:

For a general discussion of the topic of suits against government employees, see: Cibinic, J. and Nash, R., Formation of Government Contracts, 3d ed. (Washington, DC: The George Washington University Law School, 1998), pp. 127-131.

In terms of your agency's policy about representing its own employees in lawsuits, you should ask the agency attorney in the legal office who handles such matters. (That may not be the same attorney who handles contracting issues.)

I have heard that some agency attorneys have advised contracting officers to buy general liability insurance, but I don't know of any contracting officer who has actually done so.

I don't know of any contracting officer who has been held to be personally liable for anything that he or she has done in the ordinary performance of their duties.


By Fred Weatherill on Wednesday, September 13, 2000 - 02:39 pm:

Vern,

In regard to employee liability, you may wish to read CG Decision B-280764 May 4, 2000, Department of Defense--Authority to Impose Pecuniary Liability.


By Vern Edwards on Wednesday, September 13, 2000 - 03:50 pm:

Fred:

Very interesting! The GAO is asked whether an agency can, in the absence of statutory authority, impose pecuniary liability on government employees for the negligent performance of their duties, and concludes that the answer is "no."

Required reading. Thanks for bringing it to my attention.

Vern

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