DFARS 252.235-7001 Indemnification Under 10 U.S.C. 3861--Cost Reimbursement. Basic (Dec 2022) (Current)

As prescribed in 235.070-3, when the contractor is to be indemnified in accordance with 235.070-1, use either—

      (a)  The clause at 252.235-7000, Indemnification Under 10 U.S.C. 3861—Fixed Price; or

      (b)  The clause at 252.235-7001, Indemnification Under 10 U.S.C. 3861—Cost-Reimbursement, as appropriate.
 

INDEMNIFICATION UNDER 10 U.S.C. 3861—COST REIMBURSEMENT (DEC 2022)

      (a)  This clause provides for indemnification under 10 U.S.C. 3861 if the Contractor meets all the terms and conditions of this clause.

      (b)  Claims, losses, and damages covered—

              (1)  Claims by third persons for death, bodily injury, sickness, or disease, or the loss, damage, or lost use of property.  Claims include those for reasonable expenses of litigation or settlement.  The term “third persons” includes employees of the Contractor;

              (2)  The loss, damage, and lost use of the Contractor's property, but excluding lost profit; and

              (3)  Loss, damage, or lost use of the Government's property.

      (c)  The claim, loss, or damage—

              (1)  Must arise from the direct performance of this contract;

              (2)  Must not be compensated by insurance or other means, or be within deductible amounts of the Contractor's insurance;

              (3)  Must result from an unusually hazardous risk as specifically defined in the contract;

              (4)  Must not result from willful misconduct or lack of good faith on the part of any of the Contractor's directors or officers, managers, superintendents, or other equivalent representatives who have supervision or direction of—

                    (i)  All or substantially all of the Contractor's business;

                    (ii)  All or substantially all of the Contractor's operations at any one plant or separate location where this contract is being performed; or

                    (iii)  A separate and complete major industrial operation connected with the performance of this contract;

              (5)  Must not be a liability assumed under any contract or agreement (except for subcontracts covered by paragraph (i) of this clause), unless the Contracting Officer (or in contracts with the Department of the Navy, the Department) specifically approved the assumption of liability; and

              (6)  Must be certified as just and reasonable by the Secretary of the department or designated representative.

      (d)  A reduction of the insurance coverage maintained by the Contractor on the date of the execution of this contract shall not increase the Government's liability under this clause unless the Contracting Officer consents, and the contract price is equitably adjusted, if appropriate, to reflect the Contractor's consideration for the Government's assumption of increased liability.

      (e)  Notice.  The Insurance--Liability to Third Persons clause of this contract applies also to claims under this clause.  In addition, the Contractor shall—

              (1)  Promptly notify the Contracting Officer of any occurrence, action, or claim that might trigger the Government's liability under this clause;

              (2)  Furnish the proof or evidence of any claim, loss, or damage in the form and manner that the Government requires; and

              (3)  Immediately provide copies of all pertinent papers that the contractor receives or has received.

      (f)  The Government may direct, participate in, and supervise the settlement or defense of the claim or action.  The Contractor shall comply with the Government's directions, and execute any authorizations required.

      (g)  The Limitation of Cost clause of this contract does not apply to the Government's obligations under this clause.  The obligations under this clause are excepted from the release required by the Allowable Cost, Fee, and Payment clause of this contract.

      (h)  Under this clause, a claim, loss, or damage arises from the direct performance of this contract if the cause of the claim, loss, or damage occurred during the period of performance of this contract or as a result of the performance of this contract.

      (i)  Flowdown.  The Government shall indemnify the Contractor if the Contractor has an obligation to indemnify a subcontractor under any subcontract at any tier under this contract for the unusually hazardous risk identified in this contract only if—

              (1)  The Contracting Officer gave prior written approval for the Contractor to provide in a subcontract for the Contractor to indemnify the subcontractor for unusually hazardous risks defined in this contract;

              (2)  The Contracting Officer approved those indemnification provisions;

              (3)  The subcontract indemnification provisions entitle the Contractor, or the Government, or both, to direct, participate in, and supervise the settlement or defense of relevant actions and claims; and

              (4)  The subcontract provides the same rights and duties, the same provisions for notice, furnishing of paper and the like, between the Contractor and the subcontractor, as exist between the Government and the Contractor under this clause.

      (j)  The Government may discharge its obligations under paragraph (i) of this clause by making payments directly to subcontractors or to persons to whom the subcontractors may be liable.

      (k)  The rights and obligations of the parties under this clause shall survive the termination, expiration, or completion of this contract.

(End of clause)
 

  (i)  Flowdown.  The Government shall indemnify the Contractor if the Contractor has an obligation to indemnify a subcontractor under any subcontract at any tier under this contract for the unusually hazardous risk identified in this contract only if—

              (1)  The Contracting Officer gave prior written approval for the Contractor to provide in a subcontract for the Contractor to indemnify the subcontractor for unusually hazardous risks defined in this contract;

              (2)  The Contracting Officer approved those indemnification provisions;

              (3)  The subcontract indemnification provisions entitle the Contractor, or the Government, or both, to direct, participate in, and supervise the settlement or defense of relevant actions and claims; and

              (4)  The subcontract provides the same rights and duties, the same provisions for notice, furnishing of paper and the like, between the Contractor and the subcontractor, as exist between the Government and the Contractor under this clause.
 

      (j)  The Government may discharge its obligations under paragraph (i) of this clause by making payments directly to subcontractors or to persons to whom the subcontractors may be liable.

      (k)  The rights and obligations of the parties under this clause shall survive the termination, expiration, or completion of this contract.

Prime’s Interest;
FFP ✖ 

52.227-17 Rights in Data-Special Works.

52.227-18 Rights in Data-Existing Works.

52.227-2 Notice and Assistance Regarding Patent and Copyright Infringement.

52.227-3 Patent Indemnity.

52.227-4 Patent Indemnity-Construction Contracts.

52.227-5 Waiver of Indemnity.

52.228-8 Liability and Insurance-Leased Motor Vehicles.

52.236-10 Operations and Storage Areas.

52.237-7 Indemnification and Medical Liability Insurance.

52.247-21 Contractor Liability for Personal Injury and/or Property Damage.

52.247-23 Contractor Liability for Loss of and/or Damage to Household Goods.

52.250-1 Indemnification Under Public Law 85-804.

52.212-4 Contract Terms and Conditions—Commercial Products and Commercial Services.

252.204-7014 Limitations on the Use or Disclosure of Information by Litigation Support Contractors.

252.204-7015 Notice of Authorized Disclosure of Information for Litigation Support.

252.217-7012 Liability and Insurance.

252.222-7002 Compliance with Local Labor Laws (Overseas).

252.227-7001 Release of Past Infringement.

252.227-7020 Rights in Special Works.

252.227-7021 Rights in Data--Existing Works.

252.227-7025 Limitations on the Use or Disclosure of Government-Furnished Information Marked with Restrictive Legends.

252.228-7006 Compliance with Spanish Laws and Insurance.

252.235-7000 Indemnification Under 10 U.S.C. 3861--Fixed Price.

252.237-7014 Loss or Damage (Count-of-Articles).

252.237-7015 Loss or Damage (Weight of Articles).

252.247-7016 Contractor Liability for Loss or Damage.

1852.227-86 Commercial Computer Software--Licensing.

1852.227-88 Government-furnished computer software and related technical data.

1852.245-72 Liability for Government property furnished for repair or other services.

3052.217-95 Liability and insurance (USCG).

3052.228-93 Risk and indemnities (USCG).

5352.228-9101 Insurance Certificate Requirement in Spain (USAFE)

5152.228-5900 Government Liability for Non-Tactical Vehicles

552.232-78 Commercial Supplier Agreements–Unenforceable Clauses.

1452.228-72 Liability for Loss or Damage - Department of the Interior.

952.250-70 Nuclear hazards indemnity agreement.

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