Government Contractors Products Liability Act of 1983

Government Contractors' Product Liability Act of 1983 - Provides that a supplier of a product to the Government shall be indemnified by the United States for losses incurred by the supplier on account of the supplier's liability for damages for harm caused by: (1) a characteristic of such product which was specifically required in the product specifications imposed by the Government; or (2) the misuse or modification of such product by the Government.

Prohibits such indemnification if: (1) the supplier's liability is due solely to the supplier's negligence; (2) the supplier knew or should have known the defect in the characteristic of the product which caused the supplier's liability; (3) the product was designed or manufactured according to commercial standards or is generally available to persons other than the Government; or (4) the supplier designed or helped design the product specifications involved.

Sets forth requirements with respect to indemnification based upon the settlement of a claim or action against a supplier.

Sets forth procedural requirements for actions by suppliers for indemnification.

Provides that the Government's liability for indemnification of a supplier shall be based upon the Government's degree of responsibility for the design and manufacture of the product involved or for the misuse or modification of the product involved, whichever is appropriate.

Prohibits indemnification under this Act with respect to claims arising outside the United States or under the admiralty or maritime jurisdiction of the United States.

Requires that the indemnification of a supplier under this Act be reduced by the amount of any insurance paid to the supplier on account of the losses indemnified.