
From the U.S. Code Online via GPO Access
[wais.access.gpo.gov]
[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 2002]
[CITE: 10USC2354]

 
                         TITLE 10--ARMED FORCES
 
                    Subtitle A--General Military Law
 
                PART IV--SERVICE, SUPPLY, AND PROCUREMENT
 
                  CHAPTER 139--RESEARCH AND DEVELOPMENT
 
Sec. 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.

(Aug. 10, 1956, ch. 1041, 70A Stat. 134.)

                                          Historical and Revision Notes
-------------------------------------------------------------------------------
---------------------------------
            Revised section                      Source (U.S. Code)            
   Source (Statutes at Large)
-------------------------------------------------------------------------------
---------------------------------
2354(a)...............................  5:235f (1st sentence, less           Ju
ly 16, 1952, ch. 882, Sec.  5, 66
                                         provisos).                           S
tat. 726.
                                        5:475k (1st sentence, less
                                         provisos).
                                        5:628f (1st sentence, less
                                         provisos).
2354(b)...............................  5:235f (1st proviso of 1st
                                         sentence).
                                        5:475k (1st proviso of 1st
                                         sentence).
                                        5:628f (1st proviso of 1st
                                         sentence).
2354(c)...............................  5:235f (last proviso of 1st
                                         sentence).
                                        5:475k (last proviso of 1st
                                         sentence).
                                        5:628f (last proviso of 1st
                                         sentence).
2354(d)...............................  5:235f (less 1st sentence).
                                        5:475k (less 1st sentence).
                                        5:628f (less 1st sentence).
-------------------------------------------------------------------------------
---------------------------------

    In subsection (a), the words ``Liability on account of'', and ``of 
such claims'' are omitted as surplusage. In clauses (1) and (2), the 
word ``from'' is substituted for the words ``arising as a result of''.
    In subsections (a) and (b), the words ``United States'' are 
substituted for the word ``Government''.
    In subsection (b), the words ``made under subsection (a), that 
provides for indemnification'' are substituted for the words ``so 
providing * * * with respect to any alleged liability for such death''. 
The words ``appropriate'' and ``or actions filed * * * or made'' are 
omitted as surplusage.
    In subsection (c), the words ``by the Government'', ``authority 
of'', and ``for such purpose'' are omitted as surplusage.
    In subsection (d), the words ``by the Congress'' and ``the making 
of'' are omitted as surplusage. The words ``or both'' are inserted to 
conform to subsection (a).

                  Section Referred to in Other Sections

    This section is referred to in sections 284, 1887 of this title; 
title 42 sections 241, 284, 1870, 1887.
