The interim rule issued with today’s FAC 2005-67 adds a new FAR clause at 52.232-39 to make clear the government is not bound by the terms of online service agreements containing an open-ended indemnification clause. The rule addresses concerns raised in an opinion from the Department of Justice’s Office of Legal Counsel involving the use of unrestricted indemnification clauses in acquisitions for social media applications. The opinion noted that the Anti-Deficiency Act (31 USC 1341) is violated when a government employee with authority to bind the government agrees, without statutory authorization or another exception, to such open-ended clauses. The rule requires contracting officers to insert FAR 52.232-39, Unenforceability of Unauthorized Obligations, in all solicitations and contracts. The rule also makes corresponding changes to FAR 52.212-4, Contract Terms and Conditions—Commercial Items. Comments on the interim rule are due by August 20.
New FAR Clause Protects Against Anti-Deficiency Act Violations
This entry was posted in Regulations and tagged Anti-Deficiency Act, commercial items, Department of Justice, FAC, FAR Clause, indemnification, online service agreements, social media applications. Bookmark the permalink.