50.104-4
Contract clause
Insert the indemnification clause at 52.250-1 (and Alternate I for cost-reimbursement contracts) when unusually hazardous or nuclear risks are present and indemnification is approved.
Overview
FAR 50.104-4 requires contracting officers to include the clause at 52.250-1, Indemnification Under Public Law 85-804, in contracts when the approving official determines that indemnification for unusually hazardous or nuclear risks is necessary. For cost-reimbursement contracts, the clause must be used with its Alternate I. This ensures that contractors are protected from certain liabilities arising from performing work that involves significant risks, as authorized under Public Law 85-804.
Key Rules
- Clause Inclusion Requirement
- The indemnification clause (52.250-1) must be inserted in contracts when indemnification is approved for unusually hazardous or nuclear risks.
- Cost-Reimbursement Contracts
- For cost-reimbursement contracts, the clause must be used with Alternate I to address specific cost-related indemnification provisions.
Responsibilities
- Contracting Officers: Must ensure the correct clause (and Alternate I, if applicable) is included in contracts where indemnification is approved.
- Contractors: Should review contract clauses to understand indemnification coverage and obligations.
- Agencies: Approving officials must determine when indemnification is warranted and ensure compliance with FAR requirements.
Practical Implications
- This section exists to protect contractors from extraordinary liabilities when performing high-risk government work.
- It impacts contract drafting and risk management for both agencies and contractors.
- Common pitfalls include failing to include the correct clause or using the wrong version for cost-reimbursement contracts.