C O N F I D E N T I A L

                                  Item 3247

upon the contracting officer to ascertain whether the terms are sufficiently broad to permit the participation of contractor employees in the experiment. The terms of the contract must insure that the contractor will observe the conditions and safeguards set forth in this directive.

                       
             (2)  Claims against the Government.  Generally, benefits to which a private employee may become entitled by reason of death or dis- ability resulting from his employment are payable under State, rather than Federal, laws, with the exception of persons covered by the survivor's insurance provisions of the Social Security Act (49 Stat.623), as amended  (42 U.S.C. 402). In some situations the employee may have remedies     against his employer under State workmen's compensation or other laws.      It is not possible to generalize upon the right of such an employer, where  he is a Government contractor, to claim reimbursement from the Government  for additional costs by reason of liability to his employees incurred in  this regard, as this depends upon the terms of each individual contract.   The question of whether any additional rights against the employer-contractor may result from the death or disability of employees participating in experiments, by reason of the hazardous nature of the experiments, is likewise not susceptible of any general statement, due to the numerous factors involved.  Such persons would not be disqualified from prosecuting claims aginst the Government under the Federal Tort Claims Act (28 U.S.C. 2671 et seq.).  (See also AR 25-70, 2 March 1951)
                       
             (3)  Purchase of life insurance.  In cost-reimbursable type contracts, the expense of maintaining group accident and life insurance
plane may be an allowable item of cost under the contract (ASPR 15-204(p)). Group life insurance plans provided voluntarily to contractors' employees
on a reimbursable basis are subject to review by heads of procuring ac-
tivities to determine that greater benefits are not being extended under
the cost-reimbursement type contract than those granted to employees under the contractor's regular commercial operations (APP 10-351).  In special cases, life insurance for employees may be authorized by heads of procuring activities (ASPR 10-302; APP 302) even in fixed-price contracts (APP 10-01).  In order to be applicable, cost principles must be set forth or incorporated in a coat-reimbursable contract (ASPR l5-102).  It will be seen from the above that, if a contractor obtains insurance on the lives of his employees while participating in the proposed experiments, he may be reimbursed      for the expenses involved only where the contract is of a type allowing  reimbursement and the terms thereof allow recovery as an item of cost.
 
         f.  Irregular and Fee-basis Employees.  The stated category
comprehends all persons paid from appropriated funds for intermittent
services, as distinguished from regular, full-time employees.  For example, the Secretary of the Army may procure the temporary or intermittent   services of experts or consultants, including stenographic reporting services, without regard to civil service and classification laws at rates not to exceed $50 per diem (sec, 15, act of 2 Aug 1946 (60 Stat. 810;        5 U.S.C. 55a); sec. 601, Department of Defense Appropriation Act, 1953   (Pub. Law 488, 82nd Cong.); see CPR A7.6, par. 6-3). The employment of experts and consultants either on a per diem basis or without compensation

                         C O N F I D E N T I A L
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