52.250-1 Indemnification Under Public

Law85-804.

As prescribed in 50.104-4 , insert the following clause:

Indemnification Under Public Law 85-804 (Apr 1984)

(a) "Contractor’s principal officials," as used in this clause, means directors, officers, managers,

superintendents, or other representatives supervising or directing-

(1) All or substantially all of the Contractor’s business;

(2) All or substantially all of the Contractor’s operations at any one plant or separate location in

which this contract is being performed; or

(3) A separate and complete major industrial operation in connection with the performance of this

contract.

(b) Under Public Law85-804 (50 U.S.C. 1431-1435) and Executive Order10789, as amended, and

regardless of any other provisions of this contract, the Government shall, subject to the limitations

contained in the other paragraphs of this clause, indemnify the Contractor against-

(1) Claims (including reasonable expenses of litigation or settlement) by third persons (including

employees of the Contractor) for death; personal injury; or loss of, damage to, or loss of use of

property;

(2) Loss of, damage to, or loss of use of Contractor property, excluding loss of profit; and

(3) Loss of, damage to, or loss of use of Government property, excluding loss of profit.

(c) This indemnification applies only to the extent that the claim, loss, or damage (1) arises out of or

results from a risk defined in this contract as unusually hazardous or nuclear and (2)is not

compensated for by insurance or otherwise. Any such claim, loss, or damage, to the extent that it is

within the deductible amounts of the Contractor’s insurance, is not covered under this clause. If

insurance coverage or other financial protection in effect on the date the approving official

authorizes use of this clause is reduced, the Government’s liability under this clause shall not

increase as a result.

(d) When the claim, loss, or damage is caused by willful misconduct or lack of good faith on the part

of any of the Contractor’s principal officials, the Contractor shall not be indemnified for-

(1) Government claims against the Contractor (other than those arising through subrogation); or

(2) Loss or damage affecting the Contractor’s property.

(e) With the Contracting Officer’s prior written approval, the Contractor may, in any subcontract

under this contract, indemnify the subcontractor against any risk defined in this contract as

unusually hazardous or nuclear. This indemnification shall provide, between the Contractor and the

subcontractor, the same rights and duties, and the same provisions for notice, furnishing of evidence

or proof, and Government settlement or defense of claims as this clause provides. The Contracting
Officer may also approve indemnification of subcontractors at any lower tier, under the same terms

and conditions. The Government shall indemnify the Contractor against liability to subcontractors

incurred under subcontract provisions approved by the Contracting Officer.

(f) The rights and obligations of the parties under this clause shall survive this contract’s

termination, expiration, or completion. The Government shall make no payment under this clause

unless the agency head determines that the amount is just and reasonable. The Government may pay

the Contractor or subcontractors, or may directly pay parties to whom the Contractor or

subcontractors may be liable.

(g) The Contractor shall-

(1) Promptly notify the Contracting Officer of any claim or action against, or any loss by, the

Contractor or any subcontractors that may be reasonably be expected to involve indemnification

under this clause;

(2) Immediately furnish to the Government copies of all pertinent papers the Contractor receives;

(3) Furnish evidence or proof of any claim, loss, or damage covered by this clause in the manner and

form the Government requires; and

(4) Comply with the Government’s directions and execute any authorizations required in connection

with settlement or defense of claims or actions.

(h) The Government may direct, control, or assist in settling or defending any claim or action that

may involve indemnification under this clause.

(End of clause)

Alternate I (Apr 1984). In cost-reimbursement contracts, add the following paragraph (i) to the basic

clause:

(i) The cost of insurance (including self-insurance programs) covering a risk defined in this contract

as unusually hazardous or nuclear shall not be reimbursed except to the extent that the Contracting

Officer has required or approved this insurance. The Government’s obligations under this clause are-

(1) Excepted from the release required under this contract’s clause relating to allowable cost; and

(2) Not affected by this contract’s Limitation of Cost or Limitation of Funds clause.

Parent topic: 52.250 [Reserved]