§7317 Hazardous research projects: indemnification of contractors

Summary

Allows the United States, with the Secretary’s OK, to promise to pay for certain losses that come from doing unusually hazardous research under a government contract. That promise only covers losses that come directly from doing the contract work and only when the contractor’s required financial protection does not already cover them. The promise can cover two kinds of loss: claims by other people for death, injury, or property damage (but not workers’ compensation claims by the contractor’s employees at the work site), and damage or loss to the contractor’s own property from the unusually hazardous risk. Any contract that includes this promise must require the contractor to tell the United States about claims and let the United States run or help with the defense. The Secretary must certify that any payment is fair. Payments may come from the contract’s funds, available research and development funds, or money set aside for these payments. Contractors must carry financial protection the Secretary requires (usually the most private insurance available unless the Secretary sets a lower amount). That protection can include private insurance, contractual promises, self-insurance, or other proof. The Secretary may use and pay private insurers, may skip some advertising rules when needed, and may make advance payments. The promise does not give new rights to third parties. Funds for these payments remain available until spent. “Contractor” includes subcontractors at any tier.