Environmental Cleanup: Defense Indemnification for Contractor Operations.
GENERAL ACCOUNTING OFFICE WASHINGTON DC NATIONAL SECURITY AND INTERNATIONAL A FFAIRS DIV
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Public Law 85-804, as implemented, authorizes DoD and other federal agencies to indemnify contractors against losses from unusually hazardous or nuclear risks. The law requires that if any actions are taken under the law, they be reported to Congress annually. Reported actions can include specific contractors claims for costs already incurred or the inclusion of indemnification clauses in contracts to protect DOD contractors from future risks. The Comprehensive Environmental Response and Liability Act CERCLA as amended, commonly known as Superfund 42 U.S.C. 9601-75, imposes liability for cleanup, on a variety of potentially responsible parties, including owners, facility operators, and generators of hazardous substances. Under CERCLA, DoD is included among parties responsible for environmental cleanup of its facilities. If DoD pays cleaup costs related to a contractors activities, the contractor remains a potentially responsible party under CERLCLA, and DoD could seek reimbursement or possible contribution from the contractor or its insurer.
- Logistics, Military Facilities and Supplies
- Solid Wastes and Pollution and Control