Skip to content

Menu

LexBlog, Inc. logo
NetworkSub-MenuBrowse by SubjectBrowse by PublisherJoin the NetworkGet StartedSubscribeSupportContact
Search
Close

President Obama Authorizes Use of PL 85-804 to Protect Ebola Contractors

By Todd Overman on November 17, 2014
Email this postTweet this postLike this postShare this post on LinkedIn

Contracting with the Federal Government frequently includes many unique risks and uncertainties. In the wake of the Ebola epidemic occurring overseas the United States has stepped in to provide assistance, much of which comes in the form of the use of contractors. Being exposed to Ebola is not a small risk and comes with many uncertainties including becoming subject to large third-party claims for injury, death or damages. In order to continue supporting these efforts in the Ebola outbreak, there has been a drive to mitigate this risk factor for contractors. On November 13, President Obama released a Presidential Memorandum granting the Administrator of the United States Agency for International Development (USAID) the authority to indemnify companies from lawsuits related to “contracts performed in Africa in support of USAID’s response to the Ebola outbreak in Africa where the contractor, its employees, or subcontractors will have significant exposure to Ebola.”

The ability to grant this authority comes from Public Law 85-804. Generally, the Government is prohibited from entering into open-ended indemnification agreements due to the Anti-Deficiency Act. However, Public Law 85-804 permits the President to authorize any federal agency or department connected to national security the ability to enter into, amend or modify contracts with private companies in order to “facilitate the national defense.” This includes indemnifying government contractors against unusually hazardous or nuclear risks without regard to the availability of appropriated funds. The process under which indemnification is requested and negotiated is set forth in Part 50 of the Federal Acquisition Regulations (FAR).

In his memorandum, President Obama called the Ebola outbreak “a relevant state of national emergency,” adding that “this memorandum and actions taken pursuant to that authorization would facilitate the national defense.” The memorandum makes clear that the authority granted is “solely for the purpose of holding harmless and indemnifying contractors with respect to claims, losses, or damage arising out of or resulting from exposure, in the course of performance of the contracts, to Ebola.”

Photo of Todd Overman Todd Overman

Todd Overman is the chair of the firm’s Government Contracts practice and Managing Partner of the Washington, D.C. office.  He has over twenty years of experience advising companies on the unique aspects of doing business with the federal government. Over the last decade…

Todd Overman is the chair of the firm’s Government Contracts practice and Managing Partner of the Washington, D.C. office.  He has over twenty years of experience advising companies on the unique aspects of doing business with the federal government. Over the last decade, he has advised on more than 50 transactions involving the purchase or sale of a government contractor.

Read more about Todd OvermanEmailTodd's Linkedin Profile
Show more Show less
  • Posted in:
    Government Contracts
  • Blog:
    GovCon & Trade
  • Organization:
    Bass, Berry & Sims PLC
  • Article: View Original Source

Call us at 1-800-913-0988 or email sales@lexblog.com.

Facebook LinkedIn Twitter RSS
The Library at LexBlog
  • About LexBlog
  • The Field We Built
  • Library at LexBlog
  • Our Beliefs
  • Our Team
  • Contact LexBlog
  • Disclaimer
  • Editorial Policy
  • Terms of Service
  • Get Started
  • Publishing Solutions
  • Compass
  • Submit a Request
  • Support Center
  • System Status
Copyright © 2026, LexBlog, Inc. All Rights Reserved.
Law blog design & platform by LexBlog LexBlog Logo