S.Amdt. 4145

SA 4145. Mr. TUBERVILLE (for himself and Mr. Murphy) submitted an
amendment intended to be proposed to amendment SA 3867 submitted by Mr.
Reed and intended to be proposed to the bill H.R. 4350, to authorize
appropriations for fiscal year 2022 for military activities of the
Department of Defense, for military construction, and for defense
activities of the Department of Energy, to prescribe military personnel
strengths for such fiscal year, and for other purposes; which was
ordered to lie on the table; as follows:

At the end of subtitle B of title VIII, add the following:

SEC. 821. INDEMNIFICATION OF CONTRACTORS FOR UNUSUALLY
HAZARDOUS RISKS.

Section 2354 of title 10, United States Code, is amended--
(1) in subsection (a)--
(A) in the matter preceding paragraph (1)--
(i) by inserting ``the Secretary of Defense or'' after
``approval of'';
(ii) by striking ``for research or development, or both,
may'' and inserting ``or Defense Agency shall''; and

[[Page S7613]]

(iii) by striking ``either or both of''; and
(B) in paragraphs (1) and (2), by striking ``that the
contract defines'' and inserting ``that subsection (b) or the
contract defines'';
(2) by redesignating subsections (b), (c), and (d) as
subsections (c), (f), and (g), respectively;
(3) by inserting after subsection (a) the following new
subsection (b):
``(b) For purposes of subsection (a), risk of burning,
explosion, detonation, flight or surface impact, or toxic or
hazardous material release, associated with the following
shall be considered unusually hazardous:
``(1) Any hypersonic weapon system, including boost glide
vehicles and air-breathing propulsion systems.
``(2) Rocket propulsions systems, including rockets,
missiles, launch vehicles, rocket engines or motors, or
hypersonic weapons systems using a solid or liquid high-
energy propellant, including any warhead in excess of 1000
pounds of the chemical equivalent of TNT.
``(3) Introduction, fielding, or incorporating any item
containing high-energy propellants, including any warhead in
excess of 1000 pounds of the chemical equivalent of TNT
introduced, fielded, or incorporated into any ship, vessel,
submarine, aircraft, or spacecraft.
``(4) A classified program for which insurance is not
available as a result of the prohibition on disclosure of
classified information to commercial insurance providers.'';
(4) by inserting after subsection (c), as redesignated by
paragraph (2), the following new subsections (d) and (e):
``(d) For each contract made under subsection (a) that
provides for indemnification, the Secretary that approved the
contract shall determine the maximum probable loss for claims
under paragraph (1) of that subsection or losses or damage
under paragraph (2) of that subsection, as applicable.
``(e)(1) A contractor that is a party to a contract made
under subsection (a) that provides for indemnification shall
obtain liability insurance to compensate for claims under
paragraph (1) of that subsection and losses or damage under
paragraph (2) of that subsection, as applicable, in amounts
and to the extent such insurance is available under
commercially reasonable terms and pricing, including any
limits, sub-limits, exclusions, and other coverage
restrictions.
``(2) A contractor described in paragraph (1) is not
required to obtain insurance in amounts greater than the
lesser of--
``(A) the amount available under commercially reasonable
terms and pricing; or
``(B) the maximum probable loss determined under subsection
(d).'';
(5) in subsection (f), as so redesignated, by inserting
``the Secretary of Defense,'' before ``the Secretary''; and
(6) in subsection (g), as so redesignated--
(A) in the matter preceding paragraph (1), by inserting
``the Secretary of Defense,'' before ``the Secretary''; and
(B) in paragraph (2), by striking ``for research or
development, or both,''.
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