Subpart 950.1.General
Sec.
950.104 Reports.
Subpart 950.70.Nuclear Indemnification of DOE Contractors
950.7000 Scope of subpart.
950.7001 Applicability.
950.7002 Definitions.
950.7003 Nuclear hazards indemnity.
950.7004 Reserved.
950.7005 Reserved.
950.7006 Statutory nuclear hazards indemnity agreement.
950.7007 Reserved.
950.7008 Reserved.
950.7009 Fees.
950.7010 Financial protection requirements.
Subpart 950.71.General Contract Authority Indemnity
950.7101 Applicability.
Authority: 42 U.S.C. 7254; 40 U.S.C. 486(c).
Source: 49 FR 12039, Mar. 28, 1984, unless otherwise
noted.
__________________________________________
Subpart 950.1.General
950.104 Reports.
The information required by FAR 50.104(b) for all
actions taken under the extraordinary emergency
authority shall be submitted to the Director, Office of
Clearance and Support, within the Headquarters
procurement organization, no later than 30 days after
the date of completion of processing the action. In the
event no actions were taken under Pub. L. 85-804
during the preceding calendar year, a negative report
should be submitted to the Director, Office of
Clearance and Support, within the Headquarters
procurement organization, no later than January 20 of
each year.
Subpart 950.70.Nuclear Indemnification of DOE Contractors
950.7000 Scope of subpart.
This subpart describes the established policies concerning indemnification of DOE contractors against
public liability for a nuclear incident arising out of or in
connection with the contract activity.
[49 FR 12039, Mar. 28, 1984, as amended at 56 FR
57827, Nov. 14, 1991]
950.7001 Applicability.
The policies and procedures of this subpart shall
govern DOE's entering into agreements of
indemnification with recipients of a contract whose
work under the contract involves the risk of public
liability for a nuclear incident or precautionary
evacuation.
[56 FR 57827, Nov. 14, 1991]
950.7002 Definitions.
DOE contractor means any DOE prime contractor, including any agency of the Federal Government with
which DOE has entered into an interagency agreement.
Nuclear incident means any occurrence, including an extraordinary nuclear occurrence, within the United
States causing, within or outside the United States,
bodily injury, sickness, disease, or death, or loss of or
damage to property, or loss of use of property, arising
out of or resulting from the radioactive, toxic,
explosive, or other hazardous properties of source,
special nuclear, or byproduct material. The term
includes any such occurrence outside the United States
if such occurrence involves source, special nuclear, or
byproduct material owned by, and used by or under
contract with, the United States.
Person indemnified means:
(1) With respect to a nuclear incident occurring within
the United States or outside the United States as the
term is defined above and with respect to any nuclear
incident in connection with the design, development,
construction, operation, repair, maintenance, or use of
the nuclear ship Savannah, the person with whom an
indemnity agreement is executed or who is required to
maintain financial protection, and any other person who
may be liable for public liability; or
(2) With respect to any other nuclear incident occurring outside the United States, the person with whom an indemnity agreement is executed and any other person who may be liable for public liability by reason of his
activities under any contract with the Secretary of
Energy or any project to which indemnification under
the provisions of section 170d. of the Atomic Energy
Act of 1954, as amended, has been extended or under
any subcontract, purchase order, or other agreement, or
any tier under any such contract or project.
Public liability means any legal liability arising out of or resulting from a nuclear incident or precautionary
evacuation (including all reasonable additional costs
incurred by a State, or a political subdivision of a State,
in the course of responding to a nuclear incident or
precautionary evacuation), except: (1) Claims under
State or Federal workmen's compensation acts of
employees of persons indemnified who are employed at
the site of and in connection with the activity where the
nuclear incident occurs; (2) claims arising out of an act
of war; and (3) whenever used in subsections a., c., and
k. of section 170 of the Atomic Energy Act of 1954, as
amended, claims for loss of, or damage to, or loss of
use of property which is located at the site of and used
in connection with the licensed activity where the
nuclear incident occurs. Public liability also includes damage to property of persons indemnified: Provided,
that such property is covered under the terms of the
financial protection required, except property which is
located at the site of and used in connection with the
activity where the nuclear incident occurs.
[49 FR 12039, Mar. 28, 1984, as amended at 50 FR
12185, Mar. 27, 1985; 56 FR 57827, Nov. 14, 1991]
950.7003 Nuclear hazards indemnity.
(a) Section 170d. of the Atomic Energy Act, as
amended, requires DOE "to enter into agreements of
indemnification with any person who may conduct
activities under a contract with (DOE) that involve the
risk of public liability. However, DOE contractors
whose activities are already subject to indemnification
by the Nuclear Regulatory Commission are not eligible
for such statutory indemnity. See 950.7006 below.
(b) The Heads of Contracting Activities shall assure
that contracts subject to this requirement contain the
appropriate nuclear hazards indemnity provisions.
[56 FR 57828, Nov. 14, 1991]
950.7004 [Reserved]
950.7005 [Reserved]
950.7006 Statutory nuclear hazards indemnity
agreement.
(a) The contract clause contained in 952.250-70 shall
be incorporated in all contracts in which the contractor
is under risk of public liability for a nuclear incident or
precautionary evacuation arising out of or in connection
with the contract work, including such events caused by
a product delivered to a DOE-owned facility for use by
DOE or its contractors. The clause at 952.250-70 shall
be included in contracts with architect-engineer
contractors for the design of a DOE facility, the
construction or operation of which may involve the risk
of public liability for a nuclear incident or a
precautionary evacuation.
(b) However, this clause shall not be included in
contracts in which the contractor is subject to Nuclear
Regulatory Commission (NRC) financial protection
requirements under section 170b. of the Act or NRC
agreements of indemnification under section 170c. or k.
of the Act for activities to be performed under the
contract.
[56 FR 57828, Nov. 14, 1991]
950.7007 [Reserved]
950.7008 [Reserved]
950.7009 Fees.
No fee will be charged a DOE contractor for a statutory
nuclear hazards indemnity agreement.
[49 FR 12039, Mar. 28, 1984, as amended at 56 FR
57828, Nov. 14, 1991]
950.7010 Financial protection requirements.
DOE contractors with whom statutory nuclear hazards
indemnity agreements under the authority of section
170d. of the Atomic Energy Act of 1954, as amended,
are executed will not normally be required or permitted
to furnish financial protection by purchase of insurance
to cover public liability for nuclear incidents. However,
if authorized by the DOE Headquarters office having
responsibility for contractor casualty insurance
programs, DOE contractors may be (a) permitted to
furnish financial protection to themselves or (b)
permitted to continue to carry such insurance at cost to
the Government if they currently maintain insurance for
such liability.
[56 FR 57828, Nov. 14, 1991]
Subpart 950.71.General Contract Authority Indemnity
950.7101 Applicability.
(a) The DOE also has general contract authority to
enter into indemnity agreements with its contractors.
Under such authority a certain measure of protection is
extended to the DOE contractor against risk of liability,
but the assumption of liability by DOE will be
expressly subject to the availability of appropriated
funds. Prior to enactment of section 170 of the Atomic
Energy Act 1954, as amended, this authority was
exercised in a number of Atomic Energy Commission
contracts and this type of indemnification remains in
some DOE contracts.
(b) It is the policy of the DOE, subsequent to the
enactment of section 170, to restrict indemnity
agreements with DOE contractors, with respect to
protection against public liability for a nuclear incident,
to the statutory indemnity provided under section 170.
However, it is recognized that circumstances may exist
under which a DOE contractor may be exposed to a
risk of public liability for a nuclear occurrence which
would not be covered by the statutory indemnity.
(c) While it is normally DOE policy to require its
non-management and operating contractors to obtain
insurance coverage against public liability for
nonnuclear risks, there may be circumstances in which
a contractual indemnity may be warranted to protect a
DOE non-management and operating contractor
against liability for uninsured nonnuclear risks.
(d) If circumstances as mentioned in paragraph (b) or
(c) of this section do arise, it shall be the responsibility
of the Heads of Contracting Activities to submit to the
Head of the Agency or designee for review and
decision, all pertinent information concerning the need
for, or desirability of, providing a general authority
indemnity to a DOE contractor.
(e) Where the indemnified risk is nonnuclear, the
amount of general authority indemnity extended to a
fixed-price contractor should normally have a
maximum obligation equivalent to the amount of
insurance that the contractor usually carries to cover
such risks in its other commercial operations or, if the
risk involved is dissimilar to those normally
encountered by the contractor, the amount that it
otherwise would have reasonably procured to insure
this contract risk.
(f) In the event that a DOE contractor has been
extended both a statutory indemnity and a general authority indemnity, the general authority indemnity
will not apply to the extent that the statutory indemnity
applies.
(g) The provisions of this subsection do not restrict or
affect the policy of DOE to pay its cost-reimbursement
type contractors for the allowable cost of losses and
expenses incurred in the performance of the contact
work, within the maximum amount of the contract
obligation.
[49 FR 12039, Mar. 28, 1984, as amended at 56 FR 28102, June 19, 1991.Redesignated and amended at 56 FR 57828, Nov. 14, 1991; 61 FR 21975, May 13, 1996; 62 FR 34842, Jun. 27, 1997]