Page:United States Statutes at Large Volume 90 Part 2.djvu/1390

 90 STAT. 2858

"Contractor."

PUBLIC LAW 94-581—OCT. 21, 1976 contractor employed at the site of and in connection with the contract for which indemnification is granted, for death, bodily injury, or loss of or damage to property, from a risk that the contract defines as unusually hazardous. "(ii) Loss of or damage to property of the contractor from a risk that the contract defines as unusually hazardous. "(B) A contract that provides for indemnification in accordance with subparagraph (A) of this paragraph must also provide for— " (i) notice to the United States of any claim or suit against the contractor for death, bodily injury, or loss of or damage to property; and "(ii) control of or assistance in the defense by the United States, at its election, of any such suit or claim for which indemnification is provided hereunder. "(C) No payment may be made under subparagraph (A) of this paragraph unless the Administrator, or the Administrator's designee, certifies that the amount is just and reasonable. "(D) Upon approval by the Administrator, payments under subparagraph (A) of this paragraph may be made from— "(i) funds obligated for the performance of the contract concerned; "(ii) funds available for research or development or both, and not otherwise obligated; or " (iii) funds appropriated for those payments. " (E) Each contractor which is a party to an indemnification agreement under subparagraph (A) of this paragraph shall have and maintain financial protection of such type and in such amounts as the Administrator shall require to cover liability to third persons and loss of or damage to the contractor's property. The amount of financial protection required shall be the maximum amount of insurance available from private sources, except that the Administrator may establish a lesser amount, taking into consideration the cost and terms of private insurance. Such financial protection may include private insurance, private contractual indemnities, self-insurance, other proof of financial responsibility, or a combination of such measures. " (F) In administering the provisions of this paragraph, the Administrator may use the facilities and services of private insura nee organizations, and may contract to pay a reasonable compensation therefor. Any contract made under the provisions of this paragraph may be made without regard to the provisions of section 3709 of the Revised Statutes (41 U.S.C. 5), upon a showing by the Administrator that advertising is not reasonably practicable, and advance payments may be made under any such contract. "(G) The authority to indemnify contractors under this paragraph does not create any rights in third persons which would not otherwise exist by law. " (H) As used in this section, the term 'contractor' includes subcontractors of any tier under a contract containing an idemnification provision pursuant to subparagraph (A) of this paragraph. "(4) Funds appropriated to carry out this subsection shall remain available until expended.". (b) Chapter 39 of title 38, United States Code, is amended by— (1) striking out in the table of sections "1904. Research and development; coordination with other Federal programs." and inserting in lieu thereof "194. Research and development,";

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