94-31147. Changes to NASA FAR Supplement Cross-Waiver of Liability Clauses in NASA Contracts  

  • [Federal Register Volume 59, Number 244 (Wednesday, December 21, 1994)]
    [Unknown Section]
    [Page 0]
    From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
    [FR Doc No: 94-31147]
    
    
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    [Federal Register: December 21, 1994]
    
    
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    NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
    
    48 CFR Parts 1828 and 1852
    
    RIN 2700-AB12
    
     
    
    Changes to NASA FAR Supplement Cross-Waiver of Liability Clauses 
    in NASA Contracts
    
    AGENCY: Office of Procurement, Contract Management Division, National 
    Aeronautics and Space Administration (NASA).
    
    ACTION: Final rule.
    
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    SUMMARY: This final rule is the regulatory basis for cross-waiver 
    clauses to be included in contracts for NASA Space Shuttle services, 
    ELV launches, and Space Station activities. These clauses represent the 
    required implementation of a previously published final rule regarding 
    NASA's policy of cross-waivers of liability in agreements for Space 
    Shuttle services, ELV launches, and Space Station activities. By 
    incorporating these cross-waivers of liability clauses in contracts for 
    Space Shuttle services, ELV launches, and Space Station activities, 
    NASA and the other parties agree not to bring claims against each other 
    for any damage to property or for injury or death of employees that 
    occurs during the time a cross-waiver is in effect. In addition, the 
    clauses implement another requirement of the agreements which is to 
    flow down these cross-waivers to their related entities ensuring that a 
    party, its contractors, and subcontractors, waive their right to sue 
    the other party, its contractors, and subcontractors for damages 
    sustained in connection with activities conducted under the agreements.
    
    EFFECTIVE DATE: December 31, 1994.
    
    ADDRESSES: Office of Procurement, Contract Management Division (Code 
    HK), National Aeronautics and Space Administration, 300 E Street, SW, 
    Washington, DC 20546.
    
    FOR FURTHER INFORMATION CONTACT:
    Ms. Deborah O'Neill, Telephone: (202) 358-0440.
    
    SUPPLEMENTARY INFORMATION:
    
    Background
    
        In September 1991, NASA published a final rule (14 CFR Part 1266) 
    that established cross-waivers of liability as the regulatory basis for 
    cross-waiver provisions to be included in agreements for NASA Space 
    Shuttle launch services, space station activities, and ELV program 
    launches. By developing broad, consistent cross-waivers, NASA 
    established a known regime of liability limitation to encourage space 
    exploration and investment by reducing insurance costs and the 
    potential for litigation.
        To be made fully effective, the cross-waivers needed to be 
    incorporated into applicable NASA prime contracts as well as 
    subcontracts. This final rule establishes the regulatory basis for 
    inclusion of these new cross-waivers in contracts for Space Shuttle 
    services, Space Station activities, and ELV program launches.
        NASA published an interim rule (58 FR 54050) on October 20, 1993, 
    amending the NASA FAR Supplement to provide for revised cross-waivers 
    of liability clauses for Space Shuttle services and Space Station 
    activities and to provide for a new cross-waiver of liability for 
    Expendable Launch Vehicle (ELV) launches. The existing cross-waiver 
    clause for Space Shuttle was revised and the ELV program launch cross-
    waiver clause was developed to be consistent with the cross-waiver 
    clause that had been in effect for space station activities, because it 
    was becoming increasingly complex for users, customers, contractors, 
    and NASA to work under somewhat inconsistent cross-waivers of liability 
    in agreements for Space Station activities, ELV launches, and Shuttle 
    launch services not related to Space Station.
        Based upon a review of public comments on the interim rule, only 
    minor changes needed to be made to NASA FAR Supplement clause 1852.228-
    76, ``Cross-waiver of Liability for Space Station Activities,'' since 
    it already contained language corresponding with the provision in the 
    original final rule regarding cross-waiver agreements. No changes 
    needed to be made to NASA FAR Supplement clauses 1852.228-72, ``Cross-
    Waiver of Liability for Space Shuttle Services,'' and 1852.228-78 
    ``Cross-Waiver of Liability for NASA Expendable Launch Vehicle 
    Launches,'' but both these clauses are reprinted in this final rule in 
    their entirety.
        For these reasons, NASA has adopted, for use in contracts for Space 
    Shuttle services and ELV launches, the new cross-waiver clauses set 
    forth in this rule. Like the Space Station cross-waiver, the new 
    Shuttle and ELV cross-waivers will apply to all activities done in 
    implementation of Shuttle and ELV contracts. However, when an activity 
    that involves Shuttle launch services or a NASA ELV launch is to be 
    conducted under the Space Station program, the Space Station cross-
    waiver, not the respective Shuttle or ELV cross-waiver, will be 
    utilized in the agreement governing that activity.
        NASA received thirteen comments in response to the Interim Rule. 
    Several comments suggest that there may be some misunderstanding about 
    the nature and the purpose of the cross-waiver clauses. The cross-
    waiver clause is not the waiver between the Government and the 
    contractor but rather the fulfillment of NASA's obligation to flow down 
    the cross-waiver in order to bar claims by NASA contractors against 
    parties or users with whom NASA has entered into agreements for 
    services. The language in 1828.371(a) clarifies this intent. The 
    language in paragraph (a) of the clauses also states the purpose and 
    objective of the cross-waiver clauses. Several other comments suggest 
    there may be some misunderstanding between the nature of the cross-
    waivers and of indemnification under Public Law 85-804. When the 
    Government provides indemnification coverage to its contractor, the 
    Government will hold a contractor harmless from third party liability, 
    as well as from damage or harm to Government and contractor employees 
    and property, as a result of exposure to unusually hazardous risks. 
    Indemnification represents a relationship between the Government and 
    its contractor. A cross-waiver does not provide indemnification 
    protection as it does not waive third party liability between the 
    Government and its contractors. When the Government flows down a cross-
    waiver of liability to its contractors, there is a waiver of liability 
    between the Parties involved in Protected Space Operations, not between 
    the Government and its contractors (recognizing that the cross-waiver 
    shall apply only if the person, entity, or property causing the damage 
    is damaged as a result of its involvement in Protected Space 
    Operations). A cross-waiver represents a relationship between Parties 
    involved in Protected Space Operations as well as between the Parties' 
    related entities involved in Protected Space Operations. Therefore, 
    claims between the Government and its contractor are not covered by the 
    cross-waiver. The cross-waiver clauses remain unchanged, since no 
    modification is necessary to address coverage for indemnification-
    related issues. Since indemnification is a separate issue from cross-
    waiver liability, no change is made to the cross-waiver clauses stating 
    that they must be inserted in a contract that contains indemnification 
    coverage under Public Law 85-804. As stated in 1828.371, the 
    appropriate cross-waiver clause is inserted in solicitations or 
    contracts of $100,000 or more when the work to be performed involves 
    Protected Space Operations.
        The remaining comments will be addressed individually as follows. 
    One comment noted that the definition of ``Partner State'' in clause 
    1852.228-76 includes signatories to the current Intergovernmental 
    Agreement. This definition fails to include Russia's or any other 
    unforeseen future partner's involvement. For this reason, the 
    definition of ``Partner State'' in 48 CFR 1852.228-76(b)(3) has been 
    changed to include any future signatories to the Intergovernmental 
    Agreement. A second comment states that the definition of ``Protected 
    Space Operations'' in each clause differs from the current 1852.228-72 
    clause which defines the end of the activity period in detail. The 
    comment recommends that the new clauses better define the end of 
    Protected Space Operations. This Final Rule leaves the definition of 
    ``Protected Space Operations'' unchanged. The definition as well as the 
    scope of cross-waivers have been broadened intentionally as set forth 
    in the final rule for agreements in September 1991. There is no 
    latitude to change this definition in the flow down from agreements to 
    contract clauses. The third comment recommended that the words ``or 
    gross negligence'' be added after the words ``willful misconduct'' in 
    (c)(4)(iii) of each clause. The rationale mentioned that omission of 
    the phrase ``gross negligence'' would raise a potential conflict 
    between the clause and the laws of most states which refuse to 
    recognize advance agreements to waive liability based on gross 
    negligence as being contrary to public policy. The clauses remain 
    unchanged, because it is U.S. Federal policy to waive all degrees of 
    negligence when the Federal Government is involved in space launch 
    activities. A fourth comment stated the cross-waiver does not address 
    the situation in which one of the parties fails to obtain the waiver 
    agreement. The clauses remain unchanged. There is no requirement to 
    state that the contractor's failure to flow down clauses does not 
    obviate application of the substantive aspects of the clause to that 
    contractor. Another comment requested that paragraph (b)(3), the 
    definition of ``Party,'' clarify that the U.S. Government agency 
    signing the agreement is signing on behalf of the United States and all 
    its related entities. While the clauses remain unchanged, clarification 
    of this point may be necessary. The U.S. Government agency signing the 
    agreement is definitely signing on behalf of the United States and all 
    its related entities.
    
    Availability of NASA FAR Supplement
    
        The NASA FAR Supplement, of which this will become a part, is 
    codified in 48 CFR, chapter 18, and is available in its entirety on a 
    subscription basis from the Superintendent of Documents, Government 
    Printing Office, Washington, DC 20402. Cite GPO Subscription Stock 
    Number 933-003-00000-1. It is not distributed to the public, whether in 
    whole or in part, directly by NASA.
    
    Regulatory Flexibility Act
    
        NASA certifies that this Final Rule will not have significant 
    economic impact on a substantial number of small entities within the 
    meaning of the Regulatory Flexibility Act (5 U.S.C. 601, et seq.).
    
    Paperwork Reduction Act
    
        This Final Rule does not impose any reporting or record keeping 
    requirements subject to the Paperwork Reduction Act.
    
    List of Subjects in 48 CFR Parts 1828 and 1852
    
        Government procurement.
    Thomas S. Luedtke,
    Deputy Associate Administrator for Procurement.
        Accordingly, 48 CFR Parts 1828 and 1852 are amended as follows.
    
    PART 1828--BONDS AND INSURANCE
    
        1. The authority citation for 48 CFR Parts 1828 and 1852 continues 
    to read as follows:
    
        Authority: 42 U.S.C. 2473(c)(1).
    
    
    1828.001  [Removed]
    
        2. Section 1828.001 is removed.
        3. Section 1828.371 is revised to read as follows:
    
    
    1828.371  Clauses for cross-waivers of liability for Space Shuttle 
    services, Expendable Launch Vehicle (ELV) launches, and Space Station 
    activities.
    
        (a) In agreements covering Space Shuttle services, certain ELV 
    launches, Space Station activities, NASA and other signatories (the 
    Parties) agree not to bring claims against each other for any damage to 
    property or for injury or death of employees that occurs during the 
    time such a cross-waiver is in effect. These agreements involving NASA 
    and other Parties include, but are not limited to, Memoranda of 
    Understanding with foreign governments, Launch Services Agreements, and 
    other agreements for the use of NASA facilities. These agreements 
    require the Parties to flow down the cross-waiver provisions to their 
    related entities so that contractors, subcontractors, customers, and 
    other users of each Party also waive their right to bring claims 
    against other Parties and their similarly related entities for damages 
    arising out of activities conducted under the agreements. The purpose 
    of the clauses prescribed in this section is to flow down the cross-
    waivers to NASA contractors and subcontractors.
        (b) The contracting officer shall insert the clause 1852.228-72, 
    Cross-Waiver of Liability for Space Shuttle Services, in solicitations 
    and contracts of $100,000 or more when the work to be performed 
    involves ``Protected Space Operations'' (applicable to the Space 
    Shuttle) as that term is defined in the clause. If Space Shuttle 
    services under the contract are being conducted in support of the Space 
    Station program, the contracting officer shall insert the clause 
    prescribed by paragraph (d) of this section and designate application 
    of that clause to those particular activities.
        (c) The contracting officer shall insert the clause at 1852.228-78, 
    Cross-Waiver of Liability for NASA Expendable Launch Vehicle (ELV) 
    Launches, in solicitations and contracts of $100,000 or more for the 
    acquisition of ELV launch services when the service is being acquired 
    by NASA pursuant to an agreement described in paragraph (a) of this 
    section. If, under a contract that covers multiple launches, only some 
    of the launches are for payloads provided pursuant to agreements, an 
    additional clause shall be inserted in the contract to designate the 
    particular launches to which this clause applies. If a payload is being 
    launched by use of an ELV in support of the Space Station program, the 
    contracting officer shall insert the clause prescribed by paragraph (d) 
    of this section and designate application of that particular launch.
        (d) The contracting officer shall insert the clause at 1852.228-76, 
    Cross-Waiver of Liability for Space Station Activities, in 
    solicitations and contracts of $100,000 or more when the work is to be 
    performed involves ``Protected Space Operations'' (relating to the 
    Space Station) as that term is defined in the clause.
        (e) At the contracting officer's discretion, the clauses prescribed 
    by paragraphs (b), (c), and (d) of this section may be used in 
    solicitations, contracts, new work modifications, or extensions, to 
    existing contracts under $100,000 involving Space Shuttle activities, 
    ELV launch services, or Space Station activities, respectively, in 
    appropriate circumstances. Examples of such circumstances are when the 
    value of contractor property on a Government installation used in 
    performance of the contract is significant, or when it is likely that 
    the contractor or subcontractor will have its valuable property exposed 
    to risk or damage caused by other participants in the Space Shuttle 
    services, ELV launches, or Space Station activities.
    
    PART 1852--SOLICITATION PROVISIONS AND CONTRACT CLAUSES
    
        4. Section 1852.228-72 is revised to read as follows:
    
    
    1852.228-72  Cross-Waiver of liability for space shuttle services.
    
        As prescribed in 1828.371 (b) and (e), insert the following clause:
    
    Cross-Waiver of Liability for Space Shuttle Services (Sep 1993)
    
        (a) As prescribed by regulation (14 CFR part 1266), NASA 
    agreements involving Space Shuttle flights are required to contain 
    broad cross-waivers of liability among the parties and the parties 
    related entities to encourage participation in space exploration, 
    use, and investment. The purpose of this clause is to extend this 
    cross-waiver requirement to Contractors and related entities under 
    their contracts. This cross-waiver of liability shall be broadly 
    construed to achieve the objective of encouraging participation in 
    space activities.
        (b) As used in this clause, the term:
        (1) Contractors and Subcontractors include suppliers of any 
    kind.
        (2) Damage means:
        (i) Bodily injury to, or other impairment of health of, or death 
    of, any person;
        (ii) Damage to, loss of, or loss of use of any property;
        (iii) Loss of revenue or profits; or
        (iv) Other direct, indirect, or consequential damage;
        (3) Party means a person or entity that signs an agreement 
    involving a Space Shuttle service;
        (4) Payload means all property to be flown or used on or in the 
    Space Shuttle; and
        (5) Protected Space Operations means all Space Shuttle and 
    payload activities on Earth, in outer space, or in transit between 
    Earth and outer space performed in furtherance of an agreement 
    involving Space Shuttle services or performed under this contract. 
    ``Protected Space Operations'' excludes activities on Earth which 
    are conducted on return from space to develop further a payload's 
    product or process except when such development is for Space 
    Shuttle-related activities necessary to implement an agreement 
    involving Space Shuttle services or to perform this contract. It 
    includes, but is not limited to:
        (i) Research, design, development, test, manufacture, assembly, 
    integration, operation, or use of the Space Shuttle, transfer 
    vehicles, payloads, related support equipment, and facilities and 
    services;
        (ii) All activities related to ground support, test, training, 
    simulation, or guidance and control equipment and related facilities 
    or services.
        (6) Related entity means:
        (i) A party's Contractors or subcontractors at any tier;
        (ii) A party's users or customers at any tier; or
        (iii) A Contractor or subcontractor of a party's user or 
    customer at any tier.
        (c) (1) The Contractor agrees to a waiver of liability pursuant 
    to which the Contractor waives all claims against any of the 
    entities or persons listed in paragraph (c)(1)(i) through 
    (c)(1)(iii) of this clause based on damage arising out of Protected 
    Space Operations. This waiver shall apply only if the person, 
    entity, or property causing the damage is involved in Protected 
    Space Operations and the person, entity, or property damaged is 
    damaged by virtue of its involvement in Protected Space Operations. 
    This waiver shall apply to any claims for damage, whatever the legal 
    basis for such claims, including but not limited to delict (a term 
    used in civil law countries to denote a class of cases similar to 
    tort) and tort (including negligence of every degree and kind) and 
    contract, against:
        (i) Any party other than the Government;
        (ii) A related entity of any party other than the Government; 
    and
        (iii) The employees of any of the entities identified in 
    (c)(1)(i) and (c)(1)(ii) of this clause.
        (2) The Contractor agrees to extend the waiver of liability as 
    set forth in paragraph (c)(1) of this clause to subcontractors at 
    any tier by requiring them, by contract or otherwise, to agree to 
    waive all claims against the entities or persons identified in 
    paragraphs (c)(1)(i) through (c)(1)(iii) of this clause.
        (3) For avoidance of doubt, this cross-waiver includes a cross-
    waiver of liability arising from the Convention on International 
    Liability for Damage Caused by Space Objects, (March 29, 1972, 24 
    United States Treaties and other International Agreements (U.S.T.) 
    2389, Treaties and Other International Acts Series (T.I.A.S.) No. 
    7762 in which the person, entity, or property causing the damage is 
    involved in Protection Space Operations, and the person, entity, or 
    property damaged is damaged by virtue of its involvement in 
    Protected Space Operations.
        (4) Notwithstanding the other provisions of this clause, this 
    waiver of liability shall not be applicable to:
        (i) Claims between any party and its related entities or claims 
    between the Government's related entities (e.g., claims between the 
    Government and the Contractor are included within this exception);
        (ii) Claims made by a natural person, his/her estate, survivors, 
    or subrogees for injury or death of such natural person;
        (iii) Claims for damage caused by willful misconduct; and
        (iv) Intellectual property claims.
        (5) Nothing in this clause shall be construed to create the 
    basis for a claim or suit where none would otherwise exist.
    
    (End of clause)
    
        5. Section 1852.228-76 is revised to read as follows:
    
    
    1852.228-76  Cross-Waiver of liability for space station activities.
    
        As prescribed in 1828.371(d) and (e), insert the following clause:
    
    Cross-Waiver of Liability for Space Station Activities (Dec 1994)
    
        (a) The Intergovernmental Agreement for the Space Station 
    contains a broad cross-waiver provision to encourage participation 
    in the exploration and use of outer space through the Space Station. 
    The purpose of this clause is to extend this cross-waiver 
    requirement to Contractors and subcontractors as related entities of 
    NASA. This cross-waiver of liability shall be broadly construed to 
    achieve this objective of encouraging participation in space 
    activities.
        (b) As used in this clause, the term:
        (1) Damage means:
        (i) Bodily injury to, or other impairment of health of, or death 
    of, any person;
        (ii) Damage to, loss of, or loss of use of any property;
        (iii) Loss of revenue or profits; or
        (iv) Other direct, indirect, or consequential damage.
        (2) Launch Vehicle means an object (or any part thereof) 
    intended for launch, launched from Earth, or returning to Earth 
    which carries payloads or persons, or both.
        (3) Partner State means each contracting party for which the 
    ``Agreement among the Government of the United States of America, 
    Governments of Member States of the European Space Agency, 
    Government of Japan, and the Government of Canada on Cooperation in 
    the Detailed Design, Development, Operation, and Utilization of the 
    Permanently Manned Civil Space Station'' (the ``Intergovernmental 
    Agreement'') has entered into force, in accordance with Article 25 
    of the Intergovermental Agreement, and also includes any future 
    signatories of the Intergovernmental Agreement. It includes the 
    Cooperating Agency of a Partner State. The National Aeronautics and 
    Space Administration (NASA) for the United States, the Canadian 
    Space Agency (CSA) for the Government of Canada, the European Space 
    Agency (ESA) and the Science and Technology Agency of Japan (STA) 
    are the Cooperating Agencies responsible for implementing Space 
    Station cooperation. A Partner State also includes any entity 
    specified to the Memorandum of Understanding (MOU) between NASA and 
    the Government of Japan to assist the Government of Japan 
    Cooperating Agency in the implementation of that MOU.
        (4) Payload means all property to be flown or used on or in a 
    launch vehicle or the Space Station.
        (5) Protected Space Operations means all launch vehicle 
    activities, space station activities, and payload activities on 
    Earth, in outer space, or in transit between Earth and outer space 
    performed in furtherance of the Intergovernmental Agreement or 
    performed under this contract. ``Protected Space Operations'' also 
    includes all activities related to evolution of the Space Station as 
    provided for in Article 14 of the Intergovernmental Agreement. 
    ``Protected Space Operations'' excludes activities on Earth which 
    are conducted on return from the Space Station to develop further a 
    payload's product or process except when such development is for 
    Space Station-related activities in implementation of the 
    Intergovernmental Agreement or in performance of this contract. It 
    includes, but is not limited to:
        (i) Research, design, development, test, manufacture, assembly, 
    integration, operation, or use of launch or transfer vehicles, 
    payloads, related support equipment, and facilities and services;
        (ii) All activities related to ground support, test, training, 
    simulation, or guidance and control equipment and related facilities 
    or services.
        (6) Related entity means:
        (i) A Partner State's Contractors or sub-contractors at any 
    tier;
        (ii) A Partner State's users or customers at any tier; or
        (iii) A Contractor or subcontractor of a Partner States's user 
    or customer at any tier.
        (7) Contractors and Subcontractors include suppliers of any 
    kind.
        (c) (1) The Contractor agrees to a cross-waiver of liability 
    pursuant to which the Contractor waives all claims against any of 
    the entities or persons listed in paragraphs (c)(1)(i) through 
    (c)(1)(iii) of this clause based on damage arising out of Protected 
    Space Operations. This waiver shall apply only if the person, 
    entity, or property causing the damage is involved in Protected 
    Space Operations and the person, entity, or property damaged is 
    damaged by virtue of its involvement in Protected Space Operations. 
    The cross-waiver shall apply to any claims for damage, whatever the 
    legal basis for such claims, including but not limited to delict (a 
    term used in civil law countries to denote a class of cases similar 
    to tort) and tort (including negligence of every degree and kind) 
    and contract against:
      
        (i) Any Partner State other than the United States;
        (ii) A related entity of any Partner State other than the United 
    States; and
        (iii) The employee of any of the entities identified in 
    paragraphs (c)(1) (i) and (ii) of this clause.
        (2) The Contractor agrees to extend the waiver of liability as 
    set forth in paragraph (c)(1) of this clause to subcontractors at 
    any tier by requiring them, by contract or otherwise, to agree to 
    waive all claims against the entities or persons identified in 
    paragraphs (c)(1)(i) through (c)(1)(iii) of this clause.
        (3) For avoidance of doubt, this cross-waiver includes a cross-
    waiver of liability arising from the Convention on International 
    Liability for Damage Caused by Space Objects, (March 29, 1972, 24 
    United States Treaties and other International Agreements (U.S.T.) 
    2389, Treaties and other International Acts Series (T.I.A.S.) No. 
    7762) in which the person, entity, or property causing the damage is 
    involved in Protected Space Operations.
        (4) Notwithstanding the other provisions of this clause, this 
    cross-waiver of liability shall not be applicable to:
        (i) Claims between the United States and its related entities or 
    claims between the related entities of any Partner State (e.g., 
    claims between the Government and the Contractor are included within 
    this exception);
        (ii) Claims made by a natural person, his/her estate, survivors, 
    or subrogees for injury or death of such natural person;
        (iii) Claims for damage caused by willful misconduct; and
        (iv) Intellectual property claims.
        (5) Nothing in this clause shall be construed to create the 
    basis for a claim or suit where none would otherwise exist.
    
    (End of clause)
    
        6. Section 1852.228-78 is revised to read as follows:
    
    
    1852.228-78  Cross-Waiver of liability for NASA expendable launch 
    vehicle launches.
    
        As prescribed in 1828.371 (c) and (e), insert the following clause:
    
    Cross-Waiver of Liability for NASA Expendable Launch Vehicle (ELV) 
    Launches (Sep 1993)
    
        (a) As prescribed by regulation (14 CFR part 1266), NASA 
    agreements involving ELV launches are required to contain broad 
    cross-waivers of liability among the parties and the parties related 
    entities to encourage participation in space exploration, use, and 
    investment. The purpose of this clause is to extend this cross-
    waiver requirement to contractors and subcontractors as related 
    entities of NASA. This cross-waiver of liability shall be broadly 
    construed to achieve the objective of encouraging participation in 
    space activities.
        (b) As used in this clause, the term:
        (1) Contractors and Subcontractors include suppliers of any 
    kind.
        (2) Damage means:
        (i) Bodily injury to, or other impairment of health of, or death 
    of, any person;
        (ii) Damage to, loss of, or loss of use of any property;
        (iii) Loss of revenue or profits; or
        (iv) Other direct, indirect, or consequential damage;
        (3) Party means a person or entity that signs an agreement 
    involving an ELV launch;
        (4) Payload means all property to be flown or used on or in the 
    ELV; and
        (5) Protected Space Operations means all ELV and payload 
    activities on Earth, in outer space, or in transit between Earth and 
    outer space performed in furtherance of an agreement involving an 
    ELV launch or performed under the contract. ``Protected Space 
    Operations'' excludes activities on Earth which are conducted on 
    return from space to develop further a payload's product or process 
    except when such development is for ELV-related activities necessary 
    to implement an agreement involving an ELV launch or to perform this 
    contract. It includes, but is not limited to:
        (i) Research, design, development, test, manufacture, assembly, 
    integration, operation, or use of ELVs, transfer vehicles, payloads, 
    related support equipment, and facilities and services;
        (ii) All activities related to ground support, test, training, 
    simulation, or guidance and control equipment and related facilities 
    or services.
        (6) Related entity means:
        (i) A party's Contractors or subcontractors at any tier;
        (ii) A party's users or customers at any tier; and
        (iii) A Contractor or subcontractor of a party's user or 
    customer at any tier.
        (c) (1) The Contractor agrees to a waiver of liability pursuant 
    to which the Contractor waives all claims against any of the 
    entities or persons listed in paragraphs (c)(1)(i) through 
    (c)(1)(iii) of this clause based on damage arising out of Protected 
    Space Operations. This waiver shall apply only if the person, 
    entity, or property causing the damage is involved in Protected 
    Space Operations and the persons, entity, or property damaged is 
    damaged by virtue of its involvement in Protected Space Operations. 
    The waiver shall apply to any claims for damage, whatever the legal 
    basis for such claims, including but not limited to delict (a term 
    used in civil law countries to denote a class of cases similar to 
    tort) and tort (including negligence of every degree and kind) and 
    contract, against:
        (i) Any party other than the Government;
        (ii) A related entity of any party other than the Government; 
    and
        (iii) The employees of any of the entities identified in (c)(1) 
    (i) and (ii) of this clause.
        (2) The Contractor agrees to extend the waiver of liability as 
    set forth in paragraph (c)(1) of this clause to subcontractors at 
    any tier by requiring them, by contract or otherwise, to agree to 
    waive all claims against the entities or persons identified in 
    paragraphs (c)(1)(i) through (c)(1)(iii) of this clause.
        (3) For avoidance of doubt, this cross-waiver includes a cross-
    waiver of liability arising from the Convention on International 
    Liability for Damage Caused by Space Objects, (March 29, 1972, 24 
    United States Treaties and other International Agreements (U.S.T.) 
    2389, Treaties and other International Acts Series (T.I.A.S.) No. 
    7762) in which the person, entity, or property causing the damage is 
    involved in Protected Space Operations.
        (4) Notwithstanding the other provisions of this clause, this 
    cross-waiver of liability shall not be applicable to:
        (i) Claims between any party and its related entities or claims 
    between any party's related entities (e.g., claims between the 
    Government and the Contractor are included within this exception);
        (ii) Claims made by a natural person, his/her estate, survivors, 
    or subrogees for injury or death of such natural person;
        (iii) Claims for damage caused by willful misconduct; and
        (iv) Intellectual property claims.
        (5) Nothing in this clause shall be construed to create the 
    basis for a claim or suit where none would otherwise exist.
        (6) This cross-waiver shall not be applicable when the 
    Commercial Space Launch Act cross-waiver (49 U.S.C. App. 2615) is 
    applicable.
    
    (End of clause)
    
    [FR Doc. 94-31147 Filed 12-20-94; 8:45 am]
    BILLING CODE 7510-01-M
    
    
    

Document Information

Published:
12/21/1994
Department:
National Aeronautics and Space Administration
Entry Type:
Uncategorized Document
Action:
Final rule.
Document Number:
94-31147
Dates:
December 31, 1994.
Pages:
0-0 (1 pages)
Docket Numbers:
Federal Register: December 21, 1994
RINs:
2700-AB12
CFR: (2)
48 CFR 1828
48 CFR 1852