(a) If recommending approval, the contracting officer shall forward the required information to the Assistant Administrator for Procurement (Code HS), along with the following:
(i) For contracts of five years duration or longer, a determination, with supporting rationale, whether the indemnification approval and insurance coverage and premiums should be reviewed for adequacy and continued validity at points in time within the extended contract period.
(ii) A recommended Memorandum of Decision. In addition to the applicable requirements of
FAR 50.306, the Memorandum of Decision shall contain the following:
(A) The specific definition of the unusually hazardous risk to which the contractor is exposed in the performance of the contract(s);
(B) A complete discussion of the contractor's financial protection program; and
(C) The extent to, and conditions under, which indemnification is being approved for subcontracts.
(d) If approving subcontractor indemnification, the contracting officer shall document the file with a memorandum for record addressing the items set forth in
FAR 50.403-2(a) and include an analysis of the subcontractor's financial protection program. In performing this analysis, the contracting officer shall take into consideration the availability, cost, terms and conditions of insurance in relation to the unusually hazardous risk.
