10 U.S.C. § 3864 — Assumption of uninsurable risk on certain contracts

such contractor is unable to obtain insurance for such risk of loss from a commercial provider; or

a commercial provider is unable to process a claim of such contractor for loss of work in process under such covered contract.

is the result of willful misconduct or lack of good faith on the part of the managerial personnel of the contractor, including with respect to the oversight of subcontractors by the contractor; or

is the result of workmanship error by the contractor.

The term “classified contract” means a contract the performance of which requires a contractor performing under such contract, or an employee of such contractor, to have access to classified information.

The term “covered contract” means a classified, fixed-price type contract for the acquisition^* of a product entered into by the Department of Defense after the enactment of this Act.

The term “work in process” means an item at any stage of production or manufacture at any time from the initiation of contract performance until delivery to and acceptance by the Government.

The term “workmanship error” means damage to work in process that is a result of an incorrectly performed skill-based task, operation, or action that was originally planned or intended.