The legislative history explains that "[t]he need for indemnity clauses in most cases arises from the advent of nuclear power and the use of highly volatile fuels in the missile program.
386 F.2d 873, "since the early days of World War II," the main defense agencies have been authorized to grant discretionary relief to contractors suffering losses on account of mistakes.
As implemented by the Atomic Energy Commission's procurement regulations,[11] the authority conferred encompasses amendments without consideration, correction of mutual mistakes, and formalization of informal commitments.
Because the regulations preclude resort to the powers conferred by Public Law 85—804, "unless other legal authority in the Department concerned is deemed to be lacking or inadequate",[12] the Army Contract Adjustment Board has generally required contractors to exhaust remedies before the ASBCA under the disputes clause.
[13] Thus it is quite evident from the administration of Public Law 85—804 and its predecessors that the limitations on the jurisdiction of the Boards of Contract Appeals are well understood by the military procurement departments and Congress.