2017 US Code
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

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Citation 10 U.S.C. § 2354 (2017)
Section Name §2354. Contracts: indemnification provisions
Section Text

(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.

Source Credit

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

Editorial Notes
Historical and Revision Notes
Revised sectionSource (U.S. Code)Source (Statutes at Large)
2354(a) 5:235f (1st sentence, less provisos).5:475k (1st sentence, less provisos). July 16, 1952, ch. 882, §5, 66 Stat. 726.
  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).

Publication Title United States Code, 2012 Edition, Supplement 5, Title 10 - ARMED FORCES
Category Bills and Statutes
Collection United States Code
SuDoc Class Number Y 1.2/5:
Contained Within 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
Contains section 2354
Date 2017
Laws In Effect As Of Date January 12, 2018
Positive Law Yes
Disposition standard
Statutes at Large References 66 Stat. 726
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