(b) It is the policy of DOE, subsequent to the enactment of section 170, to restrict indemnity agreements with DOE 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 a DOE 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 DOE 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 a DOE 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 a DOE 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 his other commercial operations or, if the risk involved is dissimilar 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 a DOE 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 DOE 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 obliga

tion.

$9-10.5012 Service type insurance policies.

(a) Service type insurance policies are cost reimbursement type contracts or subcontracts in which the insurer provides claim and loss adjustment services on a cost reimbursement basis, which satisfies state and Federal insurance requirements.

(b) Service type insurance policies may be used when one or more of the following criteria are present and the Contracting Officer approves:

(1) Pure risk commercial insurance is not available or, if available, cost is not considered reasonable;

est.

(2) Inherent risks in the contract are new and a part of the process of commercialization;
(3) The service type insurance is needed to implement jointly funded projects; or
(4) The service type insurance arrangement is considered in the Government's best inter-

PART 9-12 LABOR

$9-12.000 Scope of part.

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

(b) The DOE provisions pertaining to operating and on-site service contractors' procurement are in subpart 9-50.12 and as specified below.

$9-12.100 General.

Subpart 9-12.1 Basic Labor Policies

Except as provided herein, Contracting Officers shall 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.

§9-12.102 Overtime, extra-pay shifts, and multishift work.

(a) The provisions of FPR 1-12.102 and this section apply to all DOE contracts including construction and procurement by operating and on-site service contractors.

(b) Approvals.

Where the cost to the Government may be affected, approval of hours of work in excess of the normal workweek is justified only in those instances and for those employees when it can be shown that overtime would provide needed and demonstrable impetus to the accomplishment of DOE objectives and that all other means of meeting these needs have been considered and found inadequate or not feasible. Accordingly, Heads of Procuring Activities shall:

(1) Establish controls to prevent excess casual overtime and to assure that such overtime work is in the best interests of the Government. By casual overtime is meant (i) work in excess of the normal workweek (or in excess of an authorized extended workweek) which cannot be regularly scheduled in advance, or (ii) regularly scheduled work in excess of the normal workweek for a period of four consecutive weeks or less; and

(2) Establish controls to assure that any use of any extended workweek schedule is in the best interest of the Government. Extended workweek means a workweek regularly scheduled and established in an excess of the normal workweek for a period in excess of four consecutive weeks.