FAR 28.312—Contract clause for insurance of leased motor vehicles.
Plain-English Summary
FAR 28.312 is a very short but important prescription rule that tells contracting officers when to include the clause at FAR 52.228-8, Liability and Insurance—Leased Motor Vehicles. It applies to solicitations and contracts for the leasing of motor vehicles and directs the government to use the clause whenever the acquisition involves leased vehicles, with the related leasing guidance found in FAR subpart 8.11. In practice, this section exists to make sure the contract clearly allocates liability and insurance responsibilities for leased vehicles, rather than leaving those issues to assumption or after-the-fact dispute. It matters because motor vehicle leasing creates distinct risk exposure for damage, injury, and third-party claims, and the clause helps ensure the contractor maintains appropriate insurance coverage and understands the government’s expectations. For contracting officers, this is a mandatory clause-insertion requirement, not a discretionary one, so the key task is identifying when the procurement is for leased motor vehicles and ensuring the clause is included in the solicitation and resulting contract.
Key Rules
Insert the required clause
The contracting officer must insert FAR 52.228-8, Liability and Insurance—Leased Motor Vehicles, in solicitations and contracts for leasing motor vehicles. This is a mandatory prescription, so omission is not appropriate when the acquisition falls within the rule.
Applies to leased vehicles
The rule is limited to solicitations and contracts for the leasing of motor vehicles. It does not, by its text, govern purchases of vehicles or other transportation arrangements that are not leases.
Follow subpart 8.11
The section points readers to FAR subpart 8.11 for related leasing guidance. Contracting officers should use that subpart to confirm the acquisition approach and ensure the lease arrangement is handled consistently with FAR requirements.
Clause allocates risk
The purpose of the clause is to address liability and insurance for leased motor vehicles. It helps define who bears the risk and what insurance coverage must be maintained during performance.
Responsibilities
Contracting Officer
Identify when the procurement is for leased motor vehicles and insert FAR 52.228-8 in the solicitation and contract. The contracting officer should also coordinate the clause with the leasing guidance in FAR subpart 8.11 and ensure the requirement is not omitted from the final award documents.
Contractor/Lessee
Comply with the liability and insurance requirements imposed by FAR 52.228-8 once included in the contract. The contractor must understand the coverage obligations and maintain the required insurance for the leased vehicles during performance.
Agency
Ensure acquisition planning and contract review processes catch leased motor vehicle requirements early enough for the clause to be included. The agency should support consistent application of the leasing rules and risk-management requirements.
Practical Implications
This is a clause-prescription rule, so the main day-to-day impact is simple but critical: if the contract is for leased motor vehicles, the clause must be included.
A common pitfall is treating a vehicle lease like a routine supply or service purchase and overlooking the special insurance/liability clause.
Contracting officers should verify whether the arrangement is truly a lease and not another form of vehicle use agreement, because the clause requirement turns on the nature of the acquisition.
Contractors should review the clause early, since insurance requirements can affect pricing, subcontracting, and the ability to perform.
If the clause is omitted from a lease contract, the government may face avoidable disputes over liability and insurance coverage, so early compliance is important.
Official Regulatory Text
The contracting officer shall insert the clause at 52.228-8 , Liability and Insurance-Leased Motor Vehicles, in solicitations and contracts for the leasing of motor vehicles (see subpart 8.11 ).