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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
274
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