AI-generated handoff memo
Legal review packet
The RFP is commercially attractive but should not proceed to a final bid until the liability exposure is bounded. The indemnity clause is broad, applies to all claims and expenses, and the RFP states no separate monetary liability cap. Insurance coverage appears manageable, but the uncapped indemnity and seven-year audit-rights language should be treated as negotiation items.
Recommended specialist action
Recommend conditional legal approval for qualification only. Require a liability cap at or below contract value before contract execution, and request an indemnity carve-out for gross negligence and willful misconduct. If the agency refuses any liability cap, escalate to BD/Ops as a no-bid risk.
Main facts for review
- Liability cap absent from RFP
- Indemnity clause review
- Insurance requirements
- Audit rights scope
Questions for Legal
- Can Legal accept qualification-stage work before the cap is negotiated?
- What minimum liability cap would Legal approve for final bid submission?
- Does the $5M insurance requirement require any new coverage or only a certificate?