FAR 50.104-4—Contract clause.
Plain-English Summary
FAR 50.104-4 tells contracting officers when and how to include the indemnification contract clause for unusually hazardous or nuclear risks under Public Law 85-804. It covers the mandatory insertion of FAR 52.250-1, Indemnification Under Public Law 85-804, whenever the approving official has determined that the contractor will be indemnified for those risks, and it also directs the use of Alternate I in cost-reimbursement contracts. In practice, this section is the implementation step that turns an approved indemnification decision into a contract term, so it matters for risk allocation, contract administration, and legal enforceability. It ties the contract clause directly to the prior approval process in FAR 50.104-3(b)(3), ensuring the contract language matches the scope of the authorized indemnification. For contractors, it signals that indemnification is not automatic; it depends on a formal determination and the correct clause version being inserted into the contract.
Key Rules
Insert required indemnity clause
The contracting officer must include FAR 52.250-1, Indemnification Under Public Law 85-804, in the contract when the approving official has determined that the contractor will be indemnified against unusually hazardous or nuclear risks.
Follow approving official’s determination
The clause is used only after the approving official has made the indemnification determination. The contracting officer does not independently decide whether the contractor will be indemnified; the contract clause must reflect the approved risk coverage.
Use Alternate I for cost-reimbursement
If the contract is cost-reimbursement, the contracting officer must use FAR 52.250-1 with Alternate I. This ensures the clause matches the contract type and the way costs and risk are handled under that arrangement.
Link to prior policy section
This section operates together with FAR 50.104-3(b)(3), which addresses the underlying approval framework for indemnification. The contract clause is the implementation mechanism for that earlier determination.
Responsibilities
Approving Official
Determine whether the contractor will be indemnified against unusually hazardous or nuclear risks and thereby authorize use of the indemnification clause.
Contracting Officer
Insert FAR 52.250-1 into the contract whenever indemnification has been approved, and use Alternate I in cost-reimbursement contracts.
Contractor
Review the contract to confirm the indemnification clause and any alternate are included correctly, and understand that indemnification applies only to the approved risks and terms.
Practical Implications
This is a drafting requirement, not a discretionary clause choice: if indemnification is approved, the clause must be in the contract.
A common pitfall is using the base clause when Alternate I is required for a cost-reimbursement contract.
Another risk is failing to align the contract language with the approving official’s actual determination, which can create coverage disputes later.
Contracting officers should verify the approval record before award or modification so the clause version matches the authorized indemnification.
Contractors should not assume broad protection; the clause only applies to the unusually hazardous or nuclear risks covered by the approval.
Official Regulatory Text
The contracting officer shall insert the clause at 52.250-1 , Indemnification Under Public Law 85-804, in contracts whenever the approving official determines that the contractor shall be indemnified against unusually hazardous or nuclear risks (also see 50.104-3 (b)(3)). In cost-reimbursement contracts, the contracting officer shall use the clause with its Alternate I.