Acquisition Regulation; Addition of Coverage to the NASA FAR Supplement on Providing Facilities to Contractors

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Part 1845

Acquisition Regulation; Addition of Coverage to the NASA FAR

Supplement on Providing Facilities to Contractors

AGENCY: Office of Procurement, Procurement Policy Division, National

Aeronautics and Space Administration (NASA).

ACTION: Interim rule with request for comments.

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SUMMARY: NASA has revised the NASA FAR Supplement (NFS), Part 1845, to

authorize providing facilities (off-the-shelf, general purpose

equipment) to contractors under certain limited conditions.

DATES: This interim rule is effective March 21, 1944. Comments are due

no later than May 20, 1994.

ADDRESSES: Comments should be addressed to Ms. Carol E. Bennett, NASA

Headquarters, Office of Procurement, Procurement Policy Division (Code

HP), Washington, DC 20546.

FOR FURTHER INFORMATION CONTACT:

Mr. Larry G. Pendleton, telephone (202) 358-0487.

SUPPLEMENTARY INFORMATION:

Background

FAR 45.302-1 states Government policy that contractors are required

to supply all facilities necessary for the performance of Government

contracts, unless the contracting situation falls under one of the five

enumerated exceptions to that policy. In a review of NASA property

practices, the General Accounting Office (GAO) has stated their opinion

that NASA has not enforced this policy uniformly and that contractor-

held facilities owned by NASA have increased substantially. NASA-owned,

contractor-held facilities amounted to over $1.9 billion in FY 1993.

NASA is committed to reversing the practice of providing facilities

to its contractors. However, since NASA now owns large quantities of

facilities, a strategy is required to gradually reduce the amount of

those facilities made available to contractors. This approach will

maximize NASA's return on investment in facilities and avoid a

significant short-term impact on NASA contractors. Therefore, where

NASA-owned facilities exist to support a function being performed under

contract, it may be in NASA's interest to continue to furnish these

existing facilities to contractors until the items require replacement.

At that time, policy compliance requires that contractors provide

replacement items at their expense if the need for the facilities still

exist.

Availability of NASA FAR Supplement

The NASA FAR Supplement, of which this regulation will become a

part, is codified in 48 CFR, chapter 18, and is available in its

entirety on a subscription basis from the Superintendent of Documents,

Government Printing Office, Washington, DC 20402. Cite GPO Subscription

Stock Number 933-003-00000-1. It is not distributed to the public,

whether in whole or in part, directly by NASA.

Regulatory Flexibility Act

NASA certifies that this interim rule will not have significant

economic impact on a substantial number of small entities within the

meaning of the Regulatory Flexibility Act (5 U.S.C. 601, et seq.).

Paperwork Reduction Act

This interim rule does not impose any reporting or record keeping

requirements subject to the Paperwork Reduction Act.

List of Subjects in 48 CFR Part 1845

Government procurement.

Thomas S. Leudtke,

Deputy Associate Administrator for Procurement.

Accordingly, 48 CFR part 1845 is amended as follows:

1. The authority citation for 48 CFR part 1845 continues to read as

follows:

Authority: 42 U.S.C. 2473(c)(1).

PART 1845--GOVERNMENT PROPERTY

1845.302-1 [Amended]

2. In section 1845.302-1, a new paragraph (c) is added to read as

follows:

1845.302-1 Policy.

* * * * *

(c) In addition to the exceptions listed in FAR 45.302-1(a),

existing NASA-owned facilities (whether contractor acquired or

Government furnished) may be retained for the remainder of the contract

period and furnished under any follow-on contract for the same effort

if the contracting officer determines that to do so would be in the

best interest of the Government, provided that: (1) The facilities are

required to accomplish the purpose of the contract;

(2) The resulting contract contains a provision requiring the

contractor to replace any of the facilities that reach the end of their

useful life during the contract period, or which are beyond economical

repair, if the facilities are still needed for contract performance.

Such replacements shall be made with contractor-owned facilities. The

contract provision shall also expressly prohibit contractor

acquisitions of facility items for the Government, unless specifically

authorized by the contract or consent has been obtained in writing from

the contracting officer pursuant to FAR 45.302-1(a);

(3) Consideration has been given to any alternative uses by

Government personnel within the agency, in consultation with the

Industrial Property Officer; and

(4) The contracting officer documents the file with a detailed

explanation of the circumstances which make furnishing of the

facilities in the best interest of the Government.

[FR Doc. 94-6464 Filed 3-18-94; 8:45 am]

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