78 STAT. ]
PUBLIC LAW 88-433-AUG. 14, 1964
441
Public Law 88-433 AN ACT August 14, 1964 To facilitate the perf<)rmance of medical research and development within the [H. R. 8611] Veterans' Administration, by providing for the indemnification of contractors.
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That (a) section 216. veterans Adminof title 88, United States Code, is amended by inserting " (1) " immedi- 'Res'errch conately after " (a) ", and changing " (b) " and " (c) " to " (2) " and " (3) ", tractors, indemniI•
1
respectively. (b) Such section 216 is further amended by adding at the end thereof a new subsection (b), as follows: "(b)(1) With the approval of the Administrator, any contract for research authorized by this section or for medical research or development authorized by section 4101 of this title, the performance of which involves a risk of an unusually hazardous nature, 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 covered by the financial protection required under subsection (b)(5) — " (A) liability (including reasonable expenses of litigation or settlement) to third persons, except liability under State or Federal Workmen's Compensation Acts to employees of the 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. " (B) loss of or damage to property of the contractor from a risk that the contract defines as unusually hazardous. "(2) A contract that provides for indemnification in accordance with subsection (b)(1) must also provide for— " (A) 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 " (B) 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. "(3) No payment may be made under subsection (b)(1) unless the Administrator, or his designee, certifies that the amount is just and reasonable. "(4) Upon approval by the Administrator, payments under subsection (b)(1) may be made from— " (A) funds obligated for the performance of the contract concerned; " (B) funds available for research or development, or both, and not otherwise obligated; or " (C) funds appropriated for those payments. "(5) Each contractor which is a party to an indemnification agreement under subsection (b)(1) 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 \o 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 int^ consideration the cost and terms of private insurance. Such financial protection may include private insurance, ]>rivate contractual indemnities, self-insurance, other proof of financial responsibility, or a combination of such measures.
fication.
72stat. m e.
^^ Stat. 1243.
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