The Department of Veterans Affairs (VA) has announced its submission of an information collection request to the Office of Management and Budget (OMB) for review under the Paperwork Reduction Act of 1995. Published in the Federal Register on November 24, 2025, this notice focuses on reinstating two clauses from the VA Acquisition Regulation (VAAR) without any modifications. These clauses, 852.237-70 and 852.228-71, address indemnification and insurance requirements for contractors providing nonpersonal health care services and vehicle or aircraft services. The move underscores the VA's ongoing efforts to ensure contractor accountability and protect against liability in critical service areas. By requiring proof of insurance before contract awards, the VA aims to safeguard its operations, beneficiaries, and the public from potential negligent acts. This routine regulatory step highlights the balance between administrative efficiency and risk management in federal procurement, with public comments due by December 24, 2025.
Background on the Paperwork Reduction Act and VAAR Clauses
The Paperwork Reduction Act (PRA) of 1995 requires federal agencies to obtain OMB approval for any collection of information from the public that imposes a reporting burden. This includes requirements in regulations that mandate businesses or individuals to submit data, such as insurance certificates. The VA's submission is a reinstatement of a previously approved collection under OMB Control Number 2900-0590, with no changes proposed. According to the notice, a prior Federal Register publication on August 14, 2025, solicited comments on this collection, indicating a standard 60-day comment period preceded this OMB submission.
VAAR clause 852.237-70, titled Indemnification and Medical Liability Insurance, replaces the Federal Acquisition Regulation (FAR) clause 52.237-7 in contracts for nonpersonal health care services. Nonpersonal services refer to those where the contractor's employees are not considered government personnel, maintaining a clear separation. The clause requires bidders to provide evidence of insurability before award and certificates of insurance before starting work. This ensures that contractors and their health care providers carry adequate medical liability insurance, protecting the VA from claims arising from negligence.
Similarly, VAAR clause 852.228-71, Indemnification and Insurance, applies to solicitations for vehicle or aircraft services. It mandates that apparent successful bidders submit proof of required insurance types and amounts via certificates from their insurers. These provisions stem from the VA's need to mitigate risks in high-stakes areas like patient care and transportation, where accidents or errors could lead to significant harm or financial loss.
Key Players and Regulatory Context
The primary agency involved is the VA's Office of Acquisition and Logistics, which oversees procurement policies. Dorothy Glasgow, acting as the VA PRA Clearance Officer, is listed as the contact for further information. The OMB plays a gatekeeping role, reviewing the collection's necessity, burden estimates, and compliance with PRA standards. The Government Publishing Office facilitates the Federal Register publication, ensuring public access.
These clauses operate within the broader framework of federal acquisition rules. The FAR provides general guidelines, but agencies like the VA can supplement them with agency-specific regulations to address unique needs. For instance, the VA's focus on health care reflects its mission to serve veterans, where lapses in contractor insurance could expose the agency to lawsuits under statutes like the Federal Tort Claims Act. Precedents such as court decisions in cases involving contractor negligence, including those related to medical malpractice in federal facilities, emphasize the importance of such protections. In one notable example, the Supreme Court's ruling in Correctional Services Corp. v. Malesko (2001) clarified limits on liability for contractors performing federal functions, reinforcing the need for explicit indemnification clauses.
Political forces also influence these regulations. Congressional oversight through committees like the House Committee on Veterans' Affairs ensures that VA procurement supports efficient service delivery without excessive bureaucracy. The PRA itself was enacted to reduce paperwork burdens on businesses, balancing regulatory needs with economic impacts on contractors, many of whom are small businesses or nonprofits.
Burden Estimates and Implications for Contractors
The notice provides detailed estimates of the information collection's burden. For clause 852.237-70, the VA anticipates 1,500 respondents annually, each taking about 30 minutes to comply, resulting in 750 burden hours. For clause 852.228-71, it expects 500 respondents, also at 30 minutes each, totaling 250 hours. These figures represent the time for gathering and submitting insurance evidence, not the cost of obtaining insurance itself.
From a contractor's perspective, these requirements add a layer of due diligence but also provide clarity on expectations. Businesses must demonstrate insurability, which could involve coordination with insurers to produce certificates. Failure to comply could disqualify a bid, potentially favoring larger firms with established insurance portfolios. However, the clauses protect contractors by defining liability limits, reducing uncertainty in high-risk services.
Short-term implications include minimal disruption, as this is a reinstatement without changes. Contractors already familiar with these clauses will face no new requirements. Long-term, maintaining these standards could influence VA contracting trends, encouraging more robust risk management practices across federal agencies. Different perspectives emerge here: proponents argue that the clauses enhance accountability and patient safety, while critics might view them as adding unnecessary administrative hurdles that could deter potential bidders, especially in underserved areas.
Perspectives and Broader Impacts
Stakeholders offer varied views on these clauses. VA beneficiaries and advocacy groups, such as the Veterans of Foreign Wars, likely support them for ensuring high-quality, insured services. Contractors and industry associations, like the Professional Services Council, may appreciate the protection against unbounded liability but advocate for streamlined processes to reduce burdens. Legal experts emphasize that these clauses align with best practices in risk allocation, drawing from principles in contract law that distribute responsibilities fairly.
The requirements also intersect with broader policy debates on federal procurement reform. Efforts to modernize acquisition, as seen in initiatives under the Federal Acquisition Streamlining Act, aim to balance oversight with efficiency. In the VA context, where health care contracts are vital for veteran services, these clauses help prevent incidents that could erode public trust.
In summary, this Federal Register notice represents a procedural step to maintain essential safeguards in VA contracting. Key takeaways include the reinstatement of clauses that mandate insurance evidence, compliance with PRA requirements, and estimated burdens on affected businesses. Looking ahead, potential next steps involve OMB's review and possible approval, after which the clauses would continue in use. Ongoing challenges may include adapting to evolving insurance markets or addressing feedback from public comments. Debates could center on whether these requirements sufficiently minimize burdens while maximizing protections, influencing future revisions to VAAR or similar regulations in other agencies. (Word count: 912)
