U.S. Department of Transportation
Federal Highway Administration
|Subject:||ACTION: Wrap-up or Owner Controlled Insurance Program Guide||Date:||May 23, 2003|
|From:||/s/ Original signed by:
King W. Gee
Associate Administrator for Infrastructure
Directors of Field Services
Over the past several years, there has been an increased awareness and use of Wrap-up or, as commonly called, Owner Controlled Insurance Programs (OCIP). On October 7, 2002, FHWA Policy was issued to describe how Federal funds can be used to participate in the costs associated with an OCIP. In that memorandum, it was indicated that a consultant team was working on developing a resource document to give a more in-depth description of OCIPs. The resource document, Guide to FHWA Funded Wrap-Up Projects, has now been completed and is attached for your use and dissemination as you deem appropriate.
The document will also be available on the Office of Infrastructure Contract Administration website at: http://www.fhwa.dot.gov/programadmin/contracts/.
The Transportation Research Board, in January 2003, released its NCHRP Synthesis of Highway Practice 308 "Owner Controlled Insurance Programs" which is a description of best practices developed from reviewing OCIPs used on highway projects. It is felt that using these documents will enable project sponsors to start the process of determining whether an OCIP would meet the insurance needs of their projects.