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B-194983 1 (1980-09-03)

handle is hein.gao/gaobadinr0001 and id is 1 raw text is: This decision concerns the propriety of agreement 7by the General Services Administra ion (GSA) to certain 'jemnity provisions in procuring public utility services for Government agencies and establishments pursuant to section 201(a) of the Federal Property and Administrative Services Act of 1949, as amended. GSA states in its request for our decision: Increasingly, the public utilities are attempting to insert an indemnity provision which, among other things, holds the Government liable to protect and save the utility companies harmless and indemnified from injury or damage to persons and property occa- sioned by the provision of the utility services. A typical indemnification provision reads as follows: 'Customer assumes all responsibility for the electric power and energy delivered hereunder I 'THE COMPTROLLER GENERAL DECISION. & . OF THE UNITED STATES VVASHINGTON. D C. 20548 FILE: B-194983 DATE: September 3, 1980 MATTER OF: Government indemnification of public utilities against loss arising out of sale of power to Government. DIGEST: General Services Administration (GSA) may procure power under tariff or contract re- quiring customer to indemnify utility against liability arising from delivery -of power. GSA has authority to procure power for Government under tariffs. Where no other practical source exists, tariff requirement is applied uniformly to pur- chases, without singling out Government, and risk of loss is remote, GAO will inter- pose no objection to existing practice of agreeing to tariff, with indemnity re- quirement, nor to proposed contract with similar indemnity provision. However, GSA should report situation to Congress.

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