(a)

architect-engineer services in connection with the con

struction of a production or utilization facility;

(b) the supply of component parts (including construction contracts where the work does not entail the risk of occurrence of a substantial nuclear incident) for a production or utilization facility; and

(c) the supply of equipment or services which would be a part of, or contribute to, or be used in connection with the construction or operation of a production or utilization facility, assurances that ERDA will enter into a statutory indemnity agreement with the contractor who will operate a facility on its completion. Assurances will be given, however, only to those contractors and suppliers who might be held liable in connection with a substantial nuclear incident occurring after completion of the facility. The form of contractual assurance which shall be utilized is contained in §9-50.704-8.

$9-10.5008 "Representation" for use in subcontracts and purchase orders of prime contractor holding statutory indemnity agreement.

An ERDA contractor with whom a statutory indemnity agreement has been executed in the form contained in §9-50.704-6 may include in any of its subcontracts and purchase orders a representation that the work under the prime contract is covered by a statutory indemnity agreement with ERDA and that this indemnity covers all persons who may be liable for public liability for any nuclear incident arising out of or in connection with the activity under the prime contract. A suggested form of "representation" follows:

The contractor represents that there is included in its prime contract with ERDA an indemnity agreement, entered into by ERDA under the authority of Section 170 of the Atomic Energy Act of 1954, as amended by Public Law 85-256 (the "Price-Anderson Act"), a copy of which may be obtained from the contractor [is attached hereto]; that, under said agreement, ERDA has agreed to indemnify the contractor and other persons indemnified, including the subcontractor, against claims for public liability (as defined in said Act) arising out of or in connection with the the contractual activity; that the indemnity applies to covered nuclear incidents which (i) take place at a "contract location" (which term, as defined in the indemnity agreement, does not include the location of the subcontractor's plant and facilities); or (ii) arise out of or in the course of transportation of source, special nuclear or by-product material to or from a "contract location"; or (iii) involve items produced or delivered under the prime contract. The obligation of ERDA to indemnify is subject to the conditions stated in the indemnity agreement.

ERDA wil1 not approve the inclusion, in the subcontracts and purchase orders of an indemnified prime contractor, of any provision whereby the prime contractor indemnifies the subcontractor or supplier against public liability for a nuclear incident because any such liability will be covered by the statutory indemnity agreement of the prime contractor.

No fee will be charged an ERDA contractor for a statutory indemnity agreement.

(a) ERDA contractors with whom statutory indemnity agreements under the authority of section of 170d of the Act are executed will not normally be required or permitted to furnish financial protection by purchase of insurance to cover public liability for nuclear incidents, except (1) that ERDA contractors now covered by insurance against such liability, with the approval of the ERDA may continue to carry such insurance, and (2) with the approval of the Controller, contractors engaged in the operation of ERDA facilities may be required or permitted to furnish financial protection in an amount not to exceed $1 million.

(b) If nuclear liability insurance is carried by a contractor who is an ERDA licensee, ERDA will pay an equitable portion of the insurance premium under its contract (or would include such an item in the calculation of a fixed price), but normally a statutory indemnity agreement would not be granted under the contract.

$9-10.5011 General contract authority indemnity.

(a) ERDA has general contract authority to enter into indemnity agreements with its contractors. Under such authority a certain measure of protection is extended to the ERDA contractor against risk of liability, but the assumption of liability by ERDA will be expressly subject to the availability of appropriated funds. Prior to enactment of section 170 of the Atomic Energy Act of 1954, as amended, this authority was exercised in a number of AEC contracts and this type of indemnification remains in some ERDA contracts.

(b) It is the policy of ERDA, subsequent to the enactment of section 170, to restrict indemnity agreements with ERDA 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 an

ERDA 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 ERDA policy to require its 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 an ERDA 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 the procuring activities to submit to the head of the agency or designee for his review and decision all pertinent information concerning the need for or desirability of providing a general authority indemnity to an ERDA 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 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 an ERDA 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 ERDA to pay its cost-reimbursement type contractors for the allowable cost of losses and expenses incurred in the performance of the contract work, within the maximum amount of the contract obligation.

$9-12.000 Scope of part.

(a) This part implements and supplements FPR Part 1-12.

(b) The ERDA provisions pertaining to operating and other onsite contractors' procurement are in subpart 9-50.12.

Subpart 9-12.1 Basic Labor Policies

$9-12.100 General.

(a) Except as provided herein, contracting officers shall, in appropriate circumstances, follow the guidance in FPR Subpart 1-12.1. Contracting officers shall apply the principles and policies set forth in §9-50.1201 and $9-50.1210 through $9-50.1213 adapting FPR 1-12.101 to certain cost-type construction and architect-engineer contracts and such other contracts to which these principles and policies are deemed appropriate and which may be applied pursuant to the provisions of such contracts.

Subpart 9-12.8 Equal Opportunity In Employment

$9-12.800 Scope of subpart.

This subpart implements FPR Subpart 1-12.8. It applies to all ERDA contracts including construction.

$9-12.805 Administration.

$9-12.805-1 Duties of the agency.

(a) The Director, Office of Equal Opportunity, is the ERDA Contract Compliance Officer. The Contract Compliance Officer has designated a Deputy Contract Compliance Officer for privately-owned facilities of Federal contractors assigned to ERDA by the Department of Labor, and has designated heads of procuring activities as deputy contract compliance officers for all existing and prospective ERDA contractors, including construction contractors, performing work at Government-owned or -supported facilities and sites.

(b) The Director, Division of Labor Relations, develops policies, standards, guides, and procedures to assure compliance with ERDA EEO policy and program objectives, Executive Orders dealing with equal employment opportunity, and rules and regulations promulgated

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