52.250-1 — Indemnification Under Public Law 85-804.

FAR 52.250-1 — Indemnification Under Public Law 85-804.. This clause is part of the Federal Acquisition Regulation and may be included in government contracts as a solicitation provision or contract clause.

52.250-1 Indemnification Under Public Law 85-804. 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 Pub. L. 85-804 (50 U.S.C 1431-1435) and Executive Order 10789, 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

• 85-804 (50 U.S.C 1431-1435) and Executive Order 10789, 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.
• 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.
• 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 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.
• (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 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.
• 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.