§20148 Indemnification; Nasa Launch Services and Reentry Services

Summary

NASA may agree in a contract to protect a company that launches or returns spacecraft for the government against successful third‑party claims for death, injury, or property damage from launches or reentries that the contract calls unusually hazardous or nuclear. That protection only covers amounts above the company’s required insurance and only up to the limit set in section 50915(a)(1)(B). The company must carry liability insurance or prove it can pay for the maximum probable loss; NASA must decide that maximum within 90 days after the company asks and gives needed information. The required insurance for one launch or reentry cannot exceed $500,000,000 for third‑party claims and $100,000,000 for U.S. Government property, or the most insurance reasonably available worldwide. Contracts must require the company to tell the United States about any claim, and the United States may choose to run or help with the defense and must approve any settlement. The government and the company must sign a mutual waiver where each agrees to be responsible for its own losses and to have its related entities do the same; the government’s waiver only applies to claims above the amount of insurance required under subsection (c)(1)(B). Indemnity can exclude claims caused by the company’s willful misconduct. Payments need a NASA certification that the amount is fair and must be paid only if funds are appropriated. The authority does not create extra rights for third parties and must follow limits on government spending and other laws; NASA cannot use this indemnity for activities that need a chapter 509 license or permit. Definitions: Government astronaut — a government astronaut; Launch services — services to launch a vehicle; Provider — a person who provides domestic launch or reentry services to the Government; Reentry services — services to return a vehicle to Earth; Related entity — a contractor or subcontractor; Third party — anyone other than the U.S. Government, government or provider related entities involved in the launch or reentry, the provider, or a government astronaut.