Exhibit I- Self Insurance Letter.pdf
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- Solicitation number
- DACA6752400015500V2
About this file
This document contains a self insurance letter and a related federal contract opportunity solicitation. The self insurance letter from the U.S. Army Corps of Engineers Real Estate Division explains that as a federal government agency, the Corps has the ability to pay claims for any damages it causes and is therefore self-insured. It does not purchase commercial insurance due to Comptroller General opinions finding such expenditures unnecessary.
The related federal contract opportunity solicitation seeks a lease for approximately 18 fully furnished one-bedroom residential apartment units in Seattle, Washington to house medical residents from Madigan Army Medical Center working at major hospitals in the area. The five-year lease requires the space to be fully serviced and furnished, including utilities, appliances, parking, linens and other amenities. Interested respondents must be able to meet the government's requirements as specified in the attached request for proposal.
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Text version
DEPARTMENT OF THE ARMY
U.S. ARMY CORPS OF ENGINEERS, SEATTLE DISTRICT
4735 EAST MARGINAL WAY SOUTH, BLDG 1202
SEATTLE, WA 98134-2388
Real Estate Division
SUBJECT: Insurance Coverage, U.S. Government Lease No DACA675XX00XXX00, XXX NE X St., Seattle, WA 98008
Owner/Property Manager XXX X St., Suite 200 Seattle, WA 98008
Dear :
I am responding to your request for a Certificate of Insurance for the subject lease.
As an agency of the Federal Government, the U. S. Army Corps of Engineers has the ability to pay claims that may be brought against it for any damage it may cause for which it can be held liable. Depending on the nature of the claim, it can be processed either as a real estate claim or as a tort claim under the Federal Tort Claims Act.
Because the Federal Government has the ability to pay claims, it therefore cannot, absent specific approval from Congress, purchase insurance to cover losses. This has been decided by a series of Comptroller General Opinions starting with 13 Comp. Dec 779 (1907) and more recently, the rule is explained in Comp. General B-158766 (1977).
Essentially, the principle is the government can only expend funds that are necessary to carry out a government purpose. Since the government has the ability to cover its losses, the expenditure of funds for insurance is deemed an unnecessary expense and is therefore not authorized.
For any questions regarding this letter on self-insurance, please contact me at (206)
XXX-XXXX.
Sincerely, XXXXX
Realty Specialist
File details come from the government source that posted it. Updated .