Sec. 1684. Determination on certain activities with unusually hazardous risks
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For fiscal years 2022 and 2023, the Secretary concerned shall prepare a report for each indemnification request made by a covered contractor with respect to a contract. Such report shall include the following elements: A determination of whether the performance of the contract includes an unusually hazardous risk (as defined in this section). An estimate of the maximum probable loss for claims or losses arising out of the contract. Consideration of requiring the covered contractor to obtain liability insurance to compensate for claims or losses to the extent such insurance is available under commercially reasonable terms and pricing, including any limits, sub-limits, exclusions and other coverage restrictions.
Consideration of not requiring a covered contractor to obtain liability insurance in amounts greater than amounts available under commercially reasonable terms and pricing or the maximum probable loss, whichever is less. Not later than 90 days after the date on which the Secretary concerned receives an indemnification request by a covered contractor during the period beginning on the date of the enactment of this Act and ending on September 30, 2023, the Secretary concerned shall submit to the congressional defense committees the report required under subsection (a).
Not later than 90 days after the date of the enactment of this Act, the Secretary of Defense shall conduct a review of the implementation by the Department of Defense of section 2354 of title 10, United States Code, and Executive Order 10789, as amended, pursuant to Public Law 85–804 ( 50 U.S.C. 1431 et seq. ) with regard to indemnifying a contractor for the performance of a contract that includes unusually hazardous risk. The review required under paragraph
(1)shall include the following: A determination of the extent to which each Secretary concerned is implementing such section 2354 and such Executive Order 10789 consistently. Identification of discrepancies and potential remedies in the military departments with respect to such implementation. Not later than 120 days after the date of the enactment of this Act, the Secretary shall provide to the congressional defense committees a briefing on the findings of the review under paragraph (1). In this section: The term covered contractor means a current or prospective prime contractor of the Department of Defense. The term military department has the meaning given in section 101 of title 10, United States Code. The term indemnification request means a request for indemnification made by a covered contractor under section 2354 of title 10, United States Code, or Executive Order 10789, as amended, pursuant to public Law 85–804 ( 50 U.S.C. 1431 et seq. ) that includes sufficient supporting justification to support a determination as required under those provisions. The term Secretary concerned means— the Secretary of the Army, with respect to matters concerning the Army; the Secretary of the Navy, with respect to matters concerning the Navy, the Marine Corps, and the Coast Guard when it is operating as a service in the Department of the Navy; and the Secretary of the Air Force, with respect to matters concerning the Air Force and the Space Force. The term unusually hazardous risk means risk of burning, explosion, detonation, flight or surface impact, or toxic or hazardous material release associated with one or more of the following products or programs: Products or programs relating to any hypersonic weapon system, including boost glide vehicles and air-breathing propulsion systems. Products or programs relating to rocket propulsion systems, including, at a minimum, with respect to rockets, missiles, launch vehicles, rocket engines or motors or hypersonic weapons systems using either a solid or liquid high energy propellant inclusive of any warhead, if any, in excess of 1000 pounds of the chemical equivalent of TNT. Products or programs relating to the introduction, fielding or incorporating of any item containing high energy propellants, inclusive of any warhead, if any, in excess of 1000 pounds of the chemical equivalent of TNT into any ship, vessel, submarine, aircraft, or spacecraft. Products or programs relating to a classified program where insurance is not available due to the prohibition of disclosure of classified information to commercial insurance providers, and without such disclosure access to insurance is not possible. Any other product or program for which the contract under which the product or program is carried out includes a risk that the contract defines as unusually hazardous.
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- Pub. L. 85-804
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Sec. 1684
Determination on certain activities with unusually hazardous risks
Pub. L.Pub. L. 85-804
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