[Federal Register Volume 59, Number 244 (Wednesday, December 21, 1994)]
[Unknown Section]
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From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-31147]


[[Page Unknown]]

[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