Partnering for Construction Contracts

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Parts 1836 and 1852

Partnering for Construction Contracts

AGENCY: Office of Procurement, Contract Management Division, National

Aeronautics and Space Administration (NASA).

ACTION: Notice of proposed rulemaking.

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SUMMARY: This is a proposed rule amending the NASA Federal Acquisition

Regulation Supplement (NFS) to set forth a clause to be used to promote

partnering under construction contracts when it has been determined

that the benefits to be derived exceed the costs.

DATES: Comments must be received on or before June 29, 1998.

ADDRESSES: Submit comments to Mr. Joseph Le Cren, NASA Headquarters,

Code HK, Washington, DC 20546.

FOR FURTHER INFORMATION CONTACT: Mr. Joseph Le Cren, Telephone: (202)

358-0444.

SUPPLEMENTARY INFORMATION:

Background

Several NASA field installations have used clauses promoting the

use of partnering for construction contracts. Although those clauses

have been similar, it was considered to be beneficial to have a

standard Agency-wide clause. The proposed rule would provide a standard

clause which would establish an Agency policy to endorse the use of

partnering where it is determined to be cost effective. The use of

partnering only would be used if voluntarily agreed to by the parties.

The use of partnering clauses in construction contracts by NASA and

other agencies has been demonstrated to reduce the average contract

cost and schedule growth, as well as reduce the amount of contract

claims and litigation. These results have been achieved because the use

of partnering has promoted a relationship of open communication and

close cooperation between the contractor and the Government, creating a

mutually beneficial environment within which to achieve contract

objectives and resolve issues.

Impact

NASA certifies that this proposed regulation will not have a

significant economic effect on a substantial number of small entities

under the Regulatory Flexibility Act (5 U.S.C. 601 et. seq.). This rule

does not impose any reporting or record keeping requirements subject to

the Paperwork Reduction Act.

List of Subjects in 48 CFR Parts 1836 and 1852

Government procurement.

Deidre Lee,

Associate Administrator for Procurement.

Accordingly, 48 CFR Parts 1836 and 1852 are proposed to be amended

as follows:

1. The authority citation for 48 CFR Parts 1836 and 1852 continues

to read as follows:

Authority: 42 U.S.C. 2743(c)(1).

PART 1836--CONSTRUCTION AND ARCHITECT-ENGINEER CONTRACTS

1836.70 [Added]

2. Subpart 1836.70 is added to read as follows:

Subpart 1836.70--Partnering

1836.7001 Definition.

Partnering means a relationship of open communication and close

cooperation that involves both Government and Contractor personnel

working together for the purpose of establishing a mutually beneficial,

proactive, cooperative environment within which to achieve contract

objectives and resolve issues and implementing actions as required.

1836.7002 General.

(a) The establishment of a partnering environment usually leads to

higher quality products completed more quickly at lower overall costs

and with fewer accidents and litigation.

[[Page 23415]]

(b) The use of partnering is encouraged as it has been shown to

reduce the average contract cost and schedule growth and to reduce

contract claims and litigation.

(c) Partnering is a voluntary contract relationship within the

management process that is not to be used to unofficially alter terms

of the contract.

1836.7003 Policy.

(a) Partnering should be used on a contract when the contracting

officer, in coordination with the project manager, determines that the

benefits to be achieved from its use are expected to be greater than

the costs.

(b) In determining whether the benefits of partnering are greater

than the costs, the following factors should be considered:

(1) The estimated dollar value of the contract;

(2) The complexity of the work to be performed;

(3) The contemplated length of the contract; and

(4) The estimated costs to be incurred in conducting the

partnership development and team building initial and follow-up

workshops

1836.7004 NASA solicitation provision and contract clause.

The contracting officer may insert a clause substantially the same

as stated at 1852.236-75, Partnering for Construction Contracts, in

solicitations and contracts for construction, when it has been

determined in accordance with 1836.7003 that the benefits to be derived

from partnering exceed the costs.

PART 1852--SOLICITATION PROVISIONS AND CONTRACT CLAUSES

1852.236-75 [Added]

3. Section 1852.236-75 is added to read as follows:

1852.236-75 Partnering for Construction Contracts.

As prescribed in 1836.7004, insert the following clause:

Partnering for Construction Contracts April 1998

(a) The terms ``partnering'' and ``partnership'' used herein

shall mean a relationship of open communication and close

cooperation that involves both Government and Contractor personnel

working together for the purpose of establishing a mutually

beneficial, proactive, cooperative environment within which to

achieve contract objectives and resolve issues and implementing

actions as required.

(b) Partnering will be a voluntary commitment mutually agreed

upon by at least NASA and the prime contractor, and preferably the

subcontractors and the A&E design contractor, if applicable.

Sustained commitment to the process is essential to assure success

of the relationship.

(c) NASA intends to facilitate contract management by

encouraging the foundation of a cohesive partnership with the

Contractor, its subcontractors, the A&E design contractor, and

NASA's contract management staff. This partnership will be

structured to draw on the strengths of each organization to identify

and achieve mutual objectives. The objectives are intended to

complete the contract requirements within budget, on schedule, and

in accordance with the plans and specifications.

(d) To implement the partnership, it is anticipated that within

30 days of the Notice to Proceed the prime Contractor's key

personnel, its subcontractors, the A&E design contractor, and NASA

personnel will attend a partnership development and team building

workshop. Follow-up team building workshops will be held

periodically throughout the duration of the contract as agreed to by

the Government and the Contractor.

(e) Any cost with effectuating the partnership will be agreed to

in advance by both parties and will be shared with no change in the

contract price. The contractor's share of the costs are not

recoverable under any other Government award.

(End of clause)

[FR Doc. 98-11387 Filed 4-28-98; 8:45 am]

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