1.24.2013

Bureautalk for "oops, screwed again"



It's not known how many defense contractors have secret indemnification agreements with the government. While most federal agencies are not allowed to enter open-ended indemnification agreements, the Pentagon is exempt under an executive order signed by President Richard Nixon in 1971.… 
"It is not possible to determine the actual or estimated cost to the Government as a result of the use of an indemnification clause since the liability of the Government, if any, will depend upon the occurrence of an incident related to the performance of the contract," White wrote. The agreement was necessary to "facilitate the national defense," he said.

Huffington Post

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