Page:United States Statutes at Large Volume 70A.djvu/192

134 134 § 2353. Contracts: acquisition, construction, or furnishing of test facilities and equipment (a) A contract of a military department for research or development, or both, may provide for the acquisition or construction by, or furnishing to, the contractor, of research, developmental, or test facilities and equipment that the Secretary of the military department concerned determines to be necessary for the performance of the contract. The facilities and equipment, and specialized housing for them, may be acquired or constructed at the expense of the United States, and may be lent or leased to the contractor with or without reimbursement, or may be sold to him at fair value. This subsection does not authorize new construction or improvements having general utility. (b) Facilities that would not be readily removable or separable without unreasonable expense or unreasonable loss of value may not be installed or constructed under this section on property not owned by the United States, unless the contract contains— (1) a provision for reimbursing the United States for the fair value of the facilities at the completion or termination of the contract or within a reasonable time thereafter; (2) an option in the United States to acquire the underlying land; or (3) an alternative provision that the Secretary concerned considers to be adequate to protect the interests of the United States in the facilities. (c) Proceeds of sales or reimbursements under this section shall be paid into the Treasury as miscellaneous receipts, except to the extent otherwise authorized by law with respect to property acquired by the contractor. §2354. Contracts: indemnification provisions (a) W i t h 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 j*easonable.

�