An Act to facilitate the performance of medical research and development within the Veterans Administration, by providing for the indemnification of contractors
PL 88-433 (H.R.8611), enacted 08/14/1964

78 STAT. ] 
PUBLIC LAW 88-433-AUG. 14, 1964 
441 
Public Law 88-433 
AN ACT 
August 14, 1964 
To facilitate ttie i>erf<)rmauce of medical research and development within the 
[H. R. 8611] 
Veterans' Administration, by providing for the indemnification of contractors. 
Be it enacted hy the Senate and House of Representatives 
of the 
United States of America in Congress assembled^ That (a) section 216 . veterans Admin-
of title 88, United States Code, is amended by inserting " (1)" immedi- '^Res'errch con-
ately after "(a)", and changing "(b)" and "(c)" to "(2)" and "(3)", tractors, indemni-
I • 
1 
fication. 
respectively. 
72stat. me. 
(b) Such section 216 is further amended by adding at the end 
thereof a new subsection (b), as follows: 
"(b) (1) With the approval of the Administrator, any contract for 
research authorized by this section or for medical research or develop-
ment authorized by section 4101 of this title, the performance of which 
^^ stat. 1243. 
involves a risk of an unusually hazardous nature, may provide that 
the United States will indemnify the contractor against either or both 
of the following, but only to the extent that they arise out of the direct 
performance of the contract and to the extent not covered by the 
financial protection required under subsection (b) (5) — 
"(A) liability (including reasonable expenses of litigation or 
settlement) to third persons, except liability under State or Fed-
eral Workmen's Compensation Acts to employees of the contractor 
employed at the site of and in connection with the contract for 
which indemnification is granted, for death, bodily injury, or loss 
of or damage to property, from a risk that the contract defines 
as unusually hazardous. 
"(B) loss of or damage to property of the contractor from 
a risk that the contract defines as unusually hazardous. 
"(2) A contract that provides for indemnification in accordance 
with subsection (b) (1) must also provide for— 
"(A) notice to the United States of any claim or suit against 
the contractor for death, bodily injury, or loss of or damage to 
property; and 
"(B) control of or assistance in the defense by the United 
States, at its election, of any such suit or claim for which in-
demnification is provided hereunder. 
"(3) No payment may be made under subsection (b)(1) unless 
the Administrator, or his designee, certifies that the amount is just 
and reasonable. 
"(4) Upon approval by the Administrator, payments under sub-
section (b) (1) may be made from— 
"(A) funds obligated for the performance of the contract 
concerned; 
"(B) funds available for research or development, or both, 
and not otherwise obligated; or 
"(C) funds appropriated for those payments. 
"(5) Each contractor which is a party to an indemnification 
agreement under subsection (b) (1) shall have and maintain financial 
])rotection of such type and in such amounts as the Administrator 
shall require to cover liability to third persons and loss of or damage 
\o the contractor's property. The amount of financial protection re-
quired shall be the maximum amount of insurance available from 
j^rivate sources, except that the Administrator may establish a lesser 
amount, taking int^ consideration the cost and terms of private in-
surance. 
Such financial protection may include private insurance, 
]>rivate contractual indemnities, self-insurance, other proof of finan-
cial responsibility, or a combination of such measures. 
442 
PUBLIC LAW 88-434-AUG. 14, 1964 
[78 STAT. 
"Contractor." 
Special restora-
tive training. 
Effective date. 
"(6) In administering the provisions of tliis section, the Adminis-
trator may use the facilities and services of private insurance orga-
nizations, and he may contract to pay a reasonable compensation 
therefor. 
Any contract made under the provisions of this subsection 
may be made without regard to the provisions of section 3709 of the 
Revised Statutes (41 U.S.C. 5), upon a showing by the Administrator 
that advertising is not reasonably practicable, and advance payments 
may be made. 
"(7) The authority to indemnify contractors under this section does 
not create any rights in third persons which would not otherwise exist 
by law. 
"(8) As used in this section, the term 'contractor" includes subcon-
tractors of any tier under a contract in which an indemnification pro-
vision pursuant to subsection (b) (1) is contained." 
(c) Such section 216 is further amended by adding the following at 
the end of the catchline:"; indemnification of contractors". 
(d) The analysis of chapter 3 of such title 38 regarding sec-
tion 216 is amended by inserting before the period at the end 
thereof "; indemnification of contractors". 
SEC. 2. The amendments made by section 6 of the Act of July 7, 
1964 (Public Law 88-361,78 Stat. 297), shall take effect as of January 
1, 1964. 
Approved August 14, 1964. 
August 14, 1964 
[H. R. 7751] 
Public Law 88-434 
AN ACT 
To extend certain construction autliority to tlie Administrator of Veterans' 
Affairs in order to provide adequate veterans' tiospital facilities in Los 
Angeles, California. 
Los Angeles, 
Calif.; Hazard 
Park. 
Army Reserve 
Center, construc-
tion. 
Be it enacted hy the Senate and House of Representatives 
of the 
United States of America in Congress assembled^ That in order to 
make available an adequate site for the proposed Veterans' Admin-
istration hospital on land known as Hazard Park, city of Los 
Angeles, California, the Administrator of Veterans' Affairs is author-
ized to construct for the Department of Defense an Army Reserve 
Center on a site approved by the Department of Defense to be pro-
vided for such purpose by the city of Los Angeles and pursuant 
to specifications established by such Department or any component 
thereof. 
Such construction may be effected under any procedure 
now authorized for the construction of Veterans' Administration 
hospitals. 
SEC. 2. Upon completion of such Reserve Center the Department of 
Defense is authorized to (1) assume full control and jurisdiction 
thereof, and (2) relinquish to the Veterans' Administration all right, 
title, and interest in and to the now existing Army Reserve Center 
located on the Hazard Park tract. 
SEC. 3. Funds appropriated to the Veterans' Administration for 
the construction of hospital and domiciliary facilities shall be avail-
able for the purpose of the first section of this Act. 
Approved August 14, 1964. 
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