10 U.S.C. § 2354 : US Code - Section 2354: Contracts: indemnification provisions

Search 10 U.S.C. § 2354 : US Code - Section 2354: Contracts: indemnification provisions

(a) With the approval of the Secretary of the military department
concerned, any contract of a military department for research or
development, or both, 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 compensated by
insurance or otherwise:
(1) Claims (including reasonable expenses of litigation or
settlement) by third persons, including employees of the
contractor, for death, bodily injury, or loss of or damage to
property, from a risk that the contract defines as unusually
hazardous.
(2) Loss of or damage to property of the contractor from a risk
that the contract defines as unusually hazardous.
(b) A contract, made under subsection (a), that provides for
indemnification must also provide for -
(1) notice to the United States of any claim or suit against
the contractor for the death, bodily injury, or loss of or damage
to property; and
(2) control of or assistance in the defense by the United
States, at its election, of that suit or claim.
(c) No payment may be made under subsection (a) unless the
Secretary of the department concerned, or an officer or official of
his department designated by him, certifies that the amount is just
and reasonable.
(d) Upon approval by the Secretary concerned, payments under
subsection (a) may be made from -
(1) funds obligated for the performance of the contract
concerned;
(2) funds available for research or development, or both, and
not otherwise obligated; or
(3) funds appropriated for those payments.