[Title 14 CFR ]
[Code of Federal Regulations (annual edition) - January 1, 2004 Edition]
[From the U.S. Government Printing Office]


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                    14


          Part 1200 to End

                         Revised as of January 1, 2004

Aeronautics and Space





          Containing a codification of documents of general 
          applicability and future effect
          As of January 1, 2004
          With Ancillaries
          Published by
          Office of the Federal Register
          National Archives and Records
          Administration

A Special Edition of the Federal Register

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                     U.S. GOVERNMENT PRINTING OFFICE
                            WASHINGTON : 2004



  For sale by the Superintendent of Documents, U.S. Government Printing 
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      Fax: (202) 512-2250 Mail: Stop SSOP, Washington, DC 20402-0001

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                            Table of Contents



                                                                    Page
  Explanation.................................................       v

  Title 14:
          Chapter V--National Aeronautics and Space 
          Administration                                             3
          Chapter VI--Air Transportation System Stabilization      517
  Finding Aids:
      Table of CFR Titles and Chapters........................     533
      Alphabetical List of Agencies Appearing in the CFR......     551
      List of CFR Sections Affected...........................     561

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                     ----------------------------

                     Cite this Code: CFR
                     To cite the regulations in 
                       this volume use title, 
                       part and section number. 
                       Thus,  14 CFR 1201.100 
                       refers to title 14, part 
                       1201, section 100.

                     ----------------------------

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                               EXPLANATION

    The Code of Federal Regulations is a codification of the general and 
permanent rules published in the Federal Register by the Executive 
departments and agencies of the Federal Government. The Code is divided 
into 50 titles which represent broad areas subject to Federal 
regulation. Each title is divided into chapters which usually bear the 
name of the issuing agency. Each chapter is further subdivided into 
parts covering specific regulatory areas.
    Each volume of the Code is revised at least once each calendar year 
and issued on a quarterly basis approximately as follows:

Title 1 through Title 16.................................as of January 1
Title 17 through Title 27..................................as of April 1
Title 28 through Title 41...................................as of July 1
Title 42 through Title 50................................as of October 1

    The appropriate revision date is printed on the cover of each 
volume.

LEGAL STATUS

    The contents of the Federal Register are required to be judicially 
noticed (44 U.S.C. 1507). The Code of Federal Regulations is prima facie 
evidence of the text of the original documents (44 U.S.C. 1510).

HOW TO USE THE CODE OF FEDERAL REGULATIONS

    The Code of Federal Regulations is kept up to date by the individual 
issues of the Federal Register. These two publications must be used 
together to determine the latest version of any given rule.
    To determine whether a Code volume has been amended since its 
revision date (in this case, January 1, 2004), consult the ``List of CFR 
Sections Affected (LSA),'' which is issued monthly, and the ``Cumulative 
List of Parts Affected,'' which appears in the Reader Aids section of 
the daily Federal Register. These two lists will identify the Federal 
Register page number of the latest amendment of any given rule.

EFFECTIVE AND EXPIRATION DATES

    Each volume of the Code contains amendments published in the Federal 
Register since the last revision of that volume of the Code. Source 
citations for the regulations are referred to by volume number and page 
number of the Federal Register and date of publication. Publication 
dates and effective dates are usually not the same and care must be 
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instances where the effective date is beyond the cut-off date for the 
Code a note has been inserted to reflect the future effective date. In 
those instances where a regulation published in the Federal Register 
states a date certain for expiration, an appropriate note will be 
inserted following the text.

OMB CONTROL NUMBERS

    The Paperwork Reduction Act of 1980 (Pub. L. 96-511) requires 
Federal agencies to display an OMB control number with their information 
collection request.

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Many agencies have begun publishing numerous OMB control numbers as 
amendments to existing regulations in the CFR. These OMB numbers are 
placed as close as possible to the applicable recordkeeping or reporting 
requirements.

OBSOLETE PROVISIONS

    Provisions that become obsolete before the revision date stated on 
the cover of each volume are not carried. Code users may find the text 
of provisions in effect on a given date in the past by using the 
appropriate numerical list of sections affected. For the period before 
January 1, 2001, consult either the List of CFR Sections Affected, 1949-
1963, 1964-1972, 1973-1985, or 1986-2000, published in 11 separate 
volumes. For the period beginning January 1, 2001, a ``List of CFR 
Sections Affected'' is published at the end of each CFR volume.

CFR INDEXES AND TABULAR GUIDES

    A subject index to the Code of Federal Regulations is contained in a 
separate volume, revised annually as of January 1, entitled CFR Index 
and Finding Aids. This volume contains the Parallel Table of Statutory 
Authorities and Agency Rules (Table I). A list of CFR titles, chapters, 
and parts and an alphabetical list of agencies publishing in the CFR are 
also included in this volume.
    An index to the text of ``Title 3--The President'' is carried within 
that volume.
    The Federal Register Index is issued monthly in cumulative form. 
This index is based on a consolidation of the ``Contents'' entries in 
the daily Federal Register.
    A List of CFR Sections Affected (LSA) is published monthly, keyed to 
the revision dates of the 50 CFR titles.

REPUBLICATION OF MATERIAL

    There are no restrictions on the republication of material appearing 
in the Code of Federal Regulations.

INQUIRIES

    For a legal interpretation or explanation of any regulation in this 
volume, contact the issuing agency. The issuing agency's name appears at 
the top of odd-numbered pages.
    For inquiries concerning CFR reference assistance, call 202-741-6000 
or write to the Director, Office of the Federal Register, National 
Archives and Records Administration, Washington, DC 20408 or e-mail 
[email protected].

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CFR Sections Affected), The United States Government Manual, the Federal 
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mail, [email protected].

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    The Office of the Federal Register also offers a free service on the 
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register. The NARA site also contains links to GPO Access.

                              Raymond A. Mosley,
                                    Director,
                          Office of the Federal Register.

January 1, 2004.

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                               THIS TITLE

    Title 14--Aeronautics and Space is composed of five volumes. The 
parts in these volumes are arranged in the following order: parts 1-59, 
60-139, 140-199, 200-1199, and part 1200-End. The first three volumes 
containing parts 1-199 are comprised of chapter I--Federal Aviation 
Administration, Department of Transportation (DOT). The fourth volume 
containing parts 200-1199 is comprised of chapter II--Office of the 
Secretary, DOT (Aviation Proceedings) and chapter III--Commercial Space 
Transportation, Federal Aviation Administration, DOT. The fifth volume 
containing part 1200-End is comprised of chapter V--National Aeronautics 
and Space Administration and chapter VI--Air Transportation System 
Stabilization. The contents of these volumes represent all current 
regulations codified under this title of the CFR as of January 1, 2004.

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

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                     TITLE 14--AERONAUTICS AND SPACE




                  (This book contains part 1200 to End)

  --------------------------------------------------------------------
                                                                    Part

chapter v--National Aeronautics and Space Administration....        1201

chapter vi--Air Transportation System Stabilization.........        1300

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                   CHAPTER V--NATIONAL AERONAUTICS AND






                          SPACE ADMINISTRATION




  --------------------------------------------------------------------
Part                                                                Page
1200

[Reserved]

1201            Statement of organization and general 
                    information.............................           5
1203            Information Security Program................          11
1203a           NASA security areas.........................          28
1203b           Security programs; arrest authority and use 
                    of force by NASA security force 
                    personnel...............................          30
1204            Administrative authority and policy.........          32
1205

[Reserved]

1206            Availability of agency records to members of 
                    the public..............................          50
1207            Standards of conduct........................          68
1208            Uniform relocation assistance and real 
                    property acquisition for Federal and 
                    federally assisted programs.............          70
1209            Boards and committees.......................          70
1210            Development work for industry in NASA wind 
                    tunnels.................................          73
1211

[Reserved]

1212            Privacy Act-NASA regulations................          76
1213            Release of information to news and 
                    information media.......................          88
1214            Space flight................................          91
1215            Tracking and Data Relay Satellite System 
                    (TDRSS).................................         147
1216            Environmental quality.......................         154
1217            Duty-free entry of space articles...........         171
1221            The NASA Seal and other devices, and the 
                    Congressional Space Medal of Honor......         174
1230            Protection of human subjects................         184
1232            Care and use of animals in the conduct of 
                    NASA activities.........................         195
1240            Inventions and contributions................         201
1241

[Reserved]

1245            Patents and other intellectual property 
                    rights..................................         206

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1250            Nondiscrimination in federally-assisted 
                    programs of NASA--effectuation of Title 
                    VI of the Civil Rights Act of 1964......         219
1251            Nondiscrimination on basis of handicap......         230
1252            Nondiscrimination on the basis of age in 
                    programs or activities receiving Federal 
                    financial assistance....................         246
1253            Nondiscrimination on the basis of sex in 
                    education programs or activities 
                    receiving Federal financial assistance..         252
1259            National Space Grant College and Fellowship 
                    Program.................................         269
1260            Grants and cooperative agreements...........         275
1261            Processing of monetary claims (general).....         336
1262            Equal Access to Justice Act in agency 
                    proceedings.............................         367
1263            Demand for information or testimony served 
                    on agency employees; procedures.........         374
1264            Implementation of the Program Fraud Civil 
                    Penalties Act of 1986...................         377
1265            Governmentwide debarment and suspension 
                    (nonprocurement)........................         394
1266            Cross-waiver of liability...................         417
1267            Governmentwide requirements for drug-free 
                    workplace (financial assistance)........         421
1271            New restrictions on lobbying................         426
1273            Uniform administrative requirements for 
                    grants and cooperative agreements to 
                    state and local governments.............         438
1274            Cooperative agreements with commercial firms         465
1275-1299

[Reserved]

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                          PART 1200 [RESERVED]



PART 1201--STATEMENT OF ORGANIZATION AND GENERAL INFORMATION--Table of Contents




                         Subpart 1--Introduction

Sec.
1201.100 Creation and authority.
1201.101 Purpose.
1201.102 Functions.
1201.103 Administration.

                         Subpart 2--Organization

1201.200 General.

                    Subpart 3--Boards and Committees

1201.300 Boards and committees.

                     Subpart 4--General Information

1201.400 NASA procurement program.
1201.401 Special document depositories.
1201.402 NASA Industrial Applications Centers.

    Authority: 5 U.S.C. 552.

    Source: 55 FR 37222, Sept. 10, 1990, unless otherwise noted.



                         Subpart 1--Introduction



Sec. 1201.100  Creation and authority.

    The National Aeronautics and Space Administration was established by 
the National Aeronautics and Space Act of 1958 (72 Stat. 426, 42 U.S.C. 
2451 et seq.), as amended (hereafter called the ``Act'').



Sec. 1201.101  Purpose.

    It is the purpose of the National Aeronautics and Space 
Administration to carry out aeronautical and space activities of the 
United States. Such activities shall be the responsibility of, and shall 
be directed by, the National Aeronautics and Space Administration, 
except that activities peculiar to or primarily associated with the 
development of weapons systems, military operations, or the defense of 
the United States shall be the responsibility of, and shall be directed 
by, the Department of Defense.



Sec. 1201.102  Functions.

    In order to carry out the purpose of the Act, NASA is authorized to 
conduct research for the solution of problems of flight within and 
outside the Earth's atmosphere; to develop, construct, test, and operate 
aeronautical and space vehicles for research purposes; to operate a 
space transportation system including the space shuttle, upper stages, 
space program, space station, and related equipment; and to perform such 
other activities as may be required for the exploration of space. The 
term aeronautical and space vehicles means aircraft, missiles, 
satellites, and other space vehicles, together with related equipment, 
devices, components, and parts. It conducts activities required for the 
exploration of space with manned and unmanned vehicles and arranges for 
the most effective utilization of the scientific and engineering 
resources of the United States with other nations engaged in 
aeronautical and space activities for peaceful purposes.



Sec. 1201.103  Administration.

    (a) NASA is headed by an Administrator, who is appointed from 
civilian life by the President by and with the advice and consent of the 
Senate. The Administrator is responsible, under the supervision and 
direction of the President, for exercising all powers and discharging 
all duties of NASA.
    (b) The Deputy Administrator of NASA is also appointed by the 
President from civilian life by and with the advice and consent of the 
Senate. The Deputy Administrator acts with or for the Administrator 
within the full scope of the Administrator's responsibilities. In the 
Administrator's absence, the Deputy Administrator serves as Acting 
Administrator.



                         Subpart 2--Organization



Sec. 1201.200  General.

    (a) NASA's basic organization consists of the Headquarters, eight 
field installations, the Jet Propulsion Laboratory (a Government-owned, 
contractor-operated facility), and several component installations which 
report to Directors of Field Installations. Responsibility for overall 
planning, coordination, and control of NASA programs is vested in NASA 
Headquarters

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located in Washington, DC. NASA Headquarters is comprised of:
    (1) The Office of the Administrator which includes the 
Administrator, Deputy Administrator, Associate Deputy Administrator, 
Assistant Deputy Administrator, and the Executive Officer.
    (2) Four Program Offices which are responsible for planning, 
direction, and management of agencywide research and development 
programs. Officials-in-Charge of these Program Offices report directly 
to the Administrator and they consist of:
    (i) The Office of Aeronautics, Exploration and Technology which is 
responsible for conducting programs to develop advanced technology to 
enable and enhance an aggressive pursuit of national objectives in 
aeronautics, space, and transatmospherics, including the National Aero-
Space Plane Program; to demonstrate the feasibility of this advanced 
technology in ground, flight, and in-space facilities to ensure its 
early utilization; and to ensure the application of agency capabilities 
and facilities to programs of other agencies and the United States 
aerospace industry. The Office is the focal point for the Space 
Exploration Initiative, a long-term program of robotic and human 
exploration which will include sending humans to the Moon early in the 
21st century to establish a permanent outpost, and then conducting human 
missions to the planet Mars. In addition, the Office is responsible for 
managing the Ames, Langley, and Lewis Research Centers.
    (ii) The Office of Space Science and Applications is responsible for 
efforts to understand the origin, evolution, and structure of the 
universe, the solar system, and the integrated functioning of the Earth. 
The Office conducts space application activities, such as remote sensing 
of the Earth, developing and understanding microgravity processes, and 
developing and testing advanced space communications as well as basic 
and applied science to facilitate life in space. The Office also is 
responsible for managing the Goddard Space Flight Center and the Jet 
Propulsion Laboratory and maintaining contacts with the Space Science 
Board of the National Academy of Sciences, the Space Applications Board, 
and other science advisory boards and committees. The Office coordinates 
its program with various government agencies, foreign interests, and the 
private sector. Its objectives are accomplished through research and 
development in astrophysics, life sciences, Earth sciences and 
applications, solar system exploration, space physics, communications, 
microgravity science and applications, and communications and 
information systems. The Office also utilizes the space shuttle, 
expendable launch vehicles, automated spacecraft, human-occupied 
spacecraft, sounding rockets, balloons, aircraft, and ground-based 
research to conduct its programs.
    (iii) The Office of Space Flight is responsible for advancing the 
space shuttle, for developing Freedom, a permanently manned space 
station, and for carrying out space transportation and other associated 
programs, including the management of the Johnson Space Center, Marshall 
Space Flight Center, Kennedy Space Center, and John C. Stennis Space 
Center. The Office plans, directs, and executes the development, 
acquisition, testing, and operations of all elements of the Space 
Transportation System; plans, directs, and manages execution of 
prelaunch, launch, flight, landing, postflight operations, and payload 
assignments; maintains and upgrades the design of ground and flight 
systems throughout the operational period; procures recurring system 
hardware; manages all U.S. Government civil launch capabilities and 
spacelab development, procurement, and operations; develops and 
implements necessary policy with other government and commercial users 
of the Space Transportation System; and coordinates all research. The 
Office is also responsible for managing and directing all aspects of the 
Space Station Freedom Program and achieving the goals established by the 
President. These goals include developing a permanently manned space 
station in the mid-1990's and involving other countries in the program, 
and promoting scientific research, technology development, and private-
sector investment in space. The Johnson Space Center, the Marshall Space 
Flight Center, the Goddard Space Flight Center, and the Lewis Research 
Center are responsible

[[Page 7]]

for developing major elements of the space station. The concept of the 
Space Station Freedom Program is to provide a manned base, initially 
accommodating a crew of eight people.
    (iv) The Office of Space Operations is responsible for an array of 
functions critical to operations of this Nation's space programs. They 
include spacecraft operations and control centers; ground and space 
communications; data acquisition and processing; flight dynamics and 
trajectory analyses; spacecraft tracking; and applied research and 
development of new technology. The Space Transportation System, Tracking 
and Data Relay Satellite System, Deep Space Network, Spaceflight 
Tracking and Data Network, and various other facilities currently 
provide the requirements for NASA's space missions. A global 
communications system links tracking sites, control centers, and data 
processing facilities that provide real-time data processing for mission 
control, orbit, and attitude determination, and routine processing of 
telemetry data for space missions.
    (3) Thirteen Headquarters Offices which provide agencywide 
leadership in management and administrative processes. Officials-in-
Charge of these offices report to the Administrator.
    (b) Directors of NASA Field Installations and other component 
installations are responsible for execution of NASA's programs, largely 
through contracts with research, development, and manufacturing 
enterprises. A broad range of research and development activities are 
conducted at NASA field installations and other component installations 
by Government-employed scientists, engineers, and technicians to 
evaluate new concepts and phenomena and to maintain the capability 
required to manage contracts with private enterprises. Although these 
field installations have a primary program responsibility to the program 
office to which they report, they also conduct work for the other 
program offices.
    (c) The NASA field installations and a brief description of their 
responsibilities are as follows:
    (1) Ames Research Center, Moffett Field, CA 94035. The Center 
manages a diverse program of research and development in support of the 
Nation's aerospace program and maintains unique research and test 
facilities including wind tunnels, simulators, supercomputers, and 
flight test ranges. Current areas of emphasis include the development of 
aerospace vehicle concepts through synergistic application of the 
Center's complete capabilities, ranging from computation and 
experimentation (in wind tunnels and simulators) to flight testing; 
research in support of human adaptation and productivity in the 
microgravity environment; and research and development of human/machine 
interfaces and levels of automation to optimize the operation of future 
aerospace systems, as well as future hypersonic vehicles and probes. 
Specifically, the Center's major program responsibilities are 
concentrated in computational and experimental fluid dynamics and 
aerodynamics; fluid and thermal physics; rotorcraft, powered-lift, and 
high-performance aircraft technology; flight simulation and research; 
controls and guidance; aerospace human factors; automation sciences, 
space and life sciences; airborne sciences and applications; space 
biology and medicine; and ground and flight projects in support of 
aeronautics and space technology. In addition to these major program 
responsibilities, the Center provides support for military programs and 
major agency projects such as the Space Transportation System, Space 
Station, and the National Aero-Space Plane.
    (2) Goddard Space Flight Center, Greenbelt, MD 20771. The Center 
conducts Earth-orbital spacecraft and experiment development flight 
operations. It develops and operates tracking and data acquisition 
systems and conducts supporting mission operations. It also develops and 
operates spacelab payloads; space physics research program; Earth 
science and applications programs; life science programs; information 
systems technology; sounding rockets and sounding rocket payloads; 
launch vehicles; balloons and balloon experiments; planetary science 
experiments; and sensors for environmental monitoring and ocean 
dynamics.
    (3) John F. Kennedy Space Center, Kennedy Space Center, FL 32899. 
The Center designs, constructs, operates, and

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maintains space vehicle facilities and ground support equipment for 
launch and recovery operations. The Center is also responsible for 
prelaunch operations, launch operations, and payload processing for the 
space shuttle and expendable launch vehicle programs, and landing 
operations for the space shuttle orbiter; also recovery and 
refurbishment of the reusable solid rocket booster.
    (4) Langley Research Center, Hampton, VA 23665. The Center performs 
research in long-haul aircraft technology; general aviation commuter 
aircraft technology; military aircraft and missile technology; National 
Aero-Space Plane; fundamental aerodynamics; computational fluid 
dynamics; propulsion/airframe integration; unsteady aerodynamics and 
aeroelasticity; hypersonic propulsion; aerospace acoustics; aerospace 
vehicle structures and materials; computational structural mechanics; 
space structures and dynamics; controls/structures interaction; 
aeroservoelasticity; interdisciplinary research; aerothermodynamics; 
aircraft flight management and operating procedures; advanced displays; 
computer science; electromagnetics; automation and robotics; reliable, 
fault-tolerant systems and software; aircraft flight control systems; 
advanced space vehicle configurations; advanced space station 
development; technology experiments in space; remote sensor and data 
acquisition and communication technology; space electronics and control 
systems; planetary entry technology; nondestructive evaluation and 
measurements technology; atmospheric sciences; Earth radiation budget; 
atmospheric dynamics; space power conversion and transmission; space 
environmental effects; and systems analysis of advanced aerospace 
vehicles.
    (5) Lewis Research Center, Cleveland, OH 44135. The Center manages 
the design and development of the power generation, storage, and 
distribution system for Space Station Freedom. The Center is also 
responsible for conducting research and technology activities in the 
following areas: airbreathing propulsion systems, including those needed 
for the National Aero-Space Plane; turbomachinery thermodynamics and 
aerodynamics; fuel and combustion; aero and space propulsion systems; 
space power; power transmission; tribology; internal engine 
computational fluid dynamics; materials; structural analysis; 
instrumentation; space communications, including design and development 
of the Advanced Communications Technology Satellite (ACTS); the ACTS 
experiments program; design, development, and fabrication of 
microgravity space experiments; and the procurement of intermediate and 
large-class expendable launch vehicle launch services. The Center also 
plays an important role in planning the Space Exploration Initiative and 
in implementing the Exploration Technology Program. In addition, the 
Center provides research and technology support to the Department of 
Defense and assists the private sector in identifying potential 
industrial applications and commercialization of NASA-developed 
technology.
    (6) Lyndon B. Johnson Space Center, Houston, TX 77058. The Center 
manages the development and operation of the space shuttle, a manned 
space transportation system developed for the United States by NASA. The 
shuttle is designed to reduce the cost of using space for commercial, 
scientific, and defense needs. The Center is responsible for 
development, production, delivery, and flight operation of the orbiter 
vehicle, that portion of the space shuttle that is designed to take crew 
and experiments into space, place satellites in orbit, retrieve ailing 
satellites, etc. The shuttle crew (up to seven people) includes pilots, 
mission specialists, and payload specialists. Crew personnel (other than 
payload specialists) are recruited, selected, and trained by the Center. 
It is also responsible for design, development, and testing of 
spaceflight payloads and associated systems for manned flight; for 
planning and conducting manned spaceflight missions; and for directing 
medical, engineering, and scientific experiments that are helping us 
understand and improve the environment. For the space station program, 
the Center provides support in the areas of headquarters level A 
responsibilities and project management.

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    (7) George C. Marshall Space Flight Center, Marshall Space Flight 
Center, AL 35812. The Center manages, develops, and tests the External 
Tank, Solid Rocket Booster, and main engines, which are major portions 
of the space shuttle project; oversees the development of the U.S. 
Spacelab; manages the space telescope; and conducts research in 
structural systems, materials science engineering, electronics, 
guidance, navigation, and control.
    (8) John C. Stennis Space Center, Stennis Space Center, MS 39529. 
The Center plans and manages research and development activities in the 
field of space and terrestrial applications; space flight; research in 
oceanography, meteorology, and environmental sciences. The Center 
coordinates research between the Administration and other government 
agencies.
    (d) The NASA Office of Inspector General is established pursuant to 
Act of Congress, Public Law 95-452, as amended, 5 U.S.C. App. III. The 
Inspector General is appointed by the President, by and with the advice 
and consent of the Senate, without regard to political affiliation and 
solely on the basis of integrity and demonstrated ability in accounting, 
auditing, financial analysis, law, management analysis, public 
administration, or investigations. The Inspector General appoints an 
Assistant Inspector General for Auditing, who is responsible for 
supervising the performance of auditing activities relating to NASA's 
programs and operations, and an Assistant Inspector General for 
Investigations, who is responsible for supervising the performance of 
NASA's investigative activities. It is the duty and responsibility of 
the Inspector General to provide policy direction, to conduct, supervise 
and coordinate audits and investigations related to NASA's programs and 
operations in order to promote economy and efficiency, and to prevent 
and detect fraud and abuse in these programs and operations. The 
Inspector General must report expeditiously to the Attorney General 
whenever the Inspector General has reasonable grounds to believe there 
has been a violation of Federal criminal law. The Inspector General is 
responsible for keeping the Administrator and Congress fully and 
currently informed, by reports concerning fraud and other serious 
problems, abuses, and deficiencies related to NASA's programs and 
operations, for recommending corrective actions, and for reporting on 
the progress in implementing such corrective actions. The Inspector 
General reports to the Administrator, but neither the Administrator nor 
the Deputy Administrator can prevent or prohibit the Inspector General 
from initiating, carrying out, or completing any audit or investigation, 
or from issuing any subpoena under authority of the Inspector General 
Act. In carrying out the responsibilities, the Inspector General shall 
comply with standards established by the Comptroller General of the 
United States for audits of governmental organizations, programs, 
activities, and functions. The Inspector General reports to Congress on 
a semiannual basis, summarizing the activities of the office. These 
reports are available to the public upon request within 60 days of their 
transmission to the Congress. Anyone wishing to report instances of 
fraud, waste, or mismanagement in NASA's programs and operations can 
call the Inspector General Hotline at 755-3402 in the Washington, DC, 
area or toll free (800) 424-9183 for all other areas. The office 
maintains a 24-hour answering service. Identities of complainants can be 
kept confidential. Written complaints can be sent to the NASA Inspector 
General, P.O. Box 23089, L'Enfant Plaza Station, Washington, DC 20026.
    (e) For more detailed description of NASA's organizational 
structure, see the ``U.S. Government Manual.''



                    Subpart 3--Boards and Committees



Sec. 1201.300  Boards and committees.

    Various boards and committees have been established as part of the 
permanent organization structure of NASA. These include:
    (a) Board of Contract Appeals. (1) The Board is established in 
accordance with the Contract Disputes Act of 1978 (41 U.S.C. 601-613). 
The function of the Board is to decide appeals from decisions of 
contracting officers relating to a contract made by NASA.

[[Page 10]]

    (2) The charter of the Board is set forth in subpart 1 of part 1209 
of this chapter. The Board's rules of procedure are set forth in 14 CFR 
part 1241.
    (3) The texts of decisions of the Board are published by Commerce 
Clearing House, Inc., in Board of Contract Appeals Decisions, and are 
hereby incorporated by reference. All decisions and orders are available 
for inspection and for purchase from the Recorder of the Board of NASA 
Headquarters, Washington, DC. Decisions and orders issued after July, 
1967, area available for inspection and for purchase at NASA Information 
Centers.
    (b) Contract Adjustment Board. (1) The function of the Board is to 
consider and dispose of requests by NASA contractors for extraordinary 
contractual adjustments pursuant to Public Law 85-804 (50 U.S.C. 1431-
35) and Executive Order 10789 dated November 14, 1958 (23 FR 8397).
    (2) The charter of the Board is set forth at subpart 3 of part 1209 
of this chapter. The Board's rules of procedure are set forth at 48 CFR 
part 1850.
    (3) Indexes of and texts of decisions of the Board are available for 
inspection and for purchase from the Chairperson of the Board, National 
Aeronautics and Space Administration, Washington, DC 20546, and from the 
NASA Information Centers.
    (c) Inventions and Contributions Board. (1) The function of the 
Board is to consider and recommend to the Administrator the action to be 
taken with respect to:
    (i) Petitions for waiver of rights to any invention or class of 
inventions made during the performance of NASA contracts; and
    (ii) Applications for award for scientific and technical 
contributions determined to have significant value in the conduct of 
aeronautical and space activities, pursuant to the National Aeronautics 
and Space Act of 1958, as amended (42 U.S.C. 2457 (f) and (g), 2458), 
and the Government Employees Incentive Awards Act (5 U.S.C. 2121-23), 
respectively.
    (2) The charter of the Board is set forth at subpart 4 of part 1209 
of this chapter. The Board's rules of procedure are set forth at 14 CFR 
parts 1240 and 1245.
    (3) The decisions of the Board on requests for waiver are available 
for inspection at NASA Headquarters, Office of Inventions and 
Contributions Board.



                     Subpart 4--General Information



Sec. 1201.400  NASA procurement program.

    (a) The Office of Procurement, headed by the Assistant Administrator 
for Procurement, serves as a central point of control and contact for 
NASA procurements. Although the procurements may be made by the field 
installations, selected contracts and contracts of special types are 
required to be approved by the Assistant Administrator for Procurement 
prior to their execution. The Office of Procurement is also responsible 
for formulation of NASA procurement policies and provides overall 
assistance and guidance to NASA field installations to achieve 
uniformity in NASA procurement processes.
    (b) The NASA procurement program is carried out principally at the 
NASA field installations listed in subpart 2 of this part and in the 
``U.S. Government Manual.'' The Headquarters Acquisition Division is 
responsible for contracts with foreign governments and foreign 
commercial organizations, the procurement of materials and services 
required by Headquarters offices except for minor office supplies and 
services procured locally, and the award of grants and cooperative 
agreements for Headquarters. The Headquarters Space Station Freedom 
Procurement Office is responsible for managing and directing the full 
range of acquisition functions in support of the Space Station Freedom 
Program Office.
    (c) All procurements are made in accordance with the Federal 
Acquisition Regulation (FAR) (48 CFR chapter 1) and the NASA Federal 
Acquisition Regulation Supplement (NASA/FAR Supplement) (48 CFR chapter 
18). Copies of these publications are available from the Superintendent 
of Documents, U.S. Government Printing Office, Washington, DC 20402, on 
an annual subscription basis.

[[Page 11]]



Sec. 1201.401  Special document depositories.

    NASA provides the National Technical Information Service (NTIS), 
U.S. Department of Commerce, 5285 Port Royal Road, Springfield, VA 
22161, with copies of NASA and/or NASA-sponsored unclassified unlimited 
documents to provide availability to the public. These documents may be 
reproduced by NTIS and sold at prices established by NTIS. NASA also 
uses the regional depository libraries established through the Federal 
Depository Library Program by chapter 19 of title 44 of the U.S. Code 
under the Government Printing Office (GPO) to make its technical 
documents and bibliographic tools available to the general public. These 
depository libraries are responsible for permanent retention of 
material, interlibrary loan, and reference services.



Sec. 1201.402  NASA Industrial Applications Centers.

    (a) As part of its Technology Utilization Program--a program 
designed to transfer new aerospace knowledge and innovative technology 
to nonaerospace sectors of the economy--NASA operates a network of 
Industrial Applications Centers. These centers serve U.S. industrial 
clients on a fee paying basis by providing access to literally millions 
of scientific and technical documents published by NASA and by other 
research and development organizations. Using computers, the NASA 
Industrial Applications Centers conduct retrospective and current 
awareness searches of available literature in accordance with client 
interests, and assist in the interpretation and adaption of retrieved 
information to specified needs. Such services may be obtained by 
contacting one of the following:
    (1) Aerospace Research Applications Center (ARAC), Indianapolis 
Center for Advanced Research, 611 N. Capital Avenue, Indianapolis, IN 
46204.
    (2) Southern Technology Applications Center, Progress Center, Box 
24, 1 Progress Boulevard, Alachua, FL 32615.
    (3) NASA/UK Technology Applications Program, University of Kentucky, 
10 Kinkead Hall, Lexington, KY 40506-0057.
    (4) NASA Industrial Applications Center, 823 William Pitt Union, 
University of Pittsburgh, Pittsburgh, PA 15260.
    (5) New England Research Application Center (NERAC), One Technology 
Drive, Tolland, CT 06084.
    (6) North Carolina Science and Technology Research Center, P.O. Box 
12235, Research Triangle Park, NC 27709.
    (7) Technology Application Center (TAC), University of New Mexico, 
Albuquerque, NM 87131.
    (8) Kerr Industrial Applications Center, Southeastern Oklahoma State 
University, Station A, Box 2584, Durant, OK 74701.
    (9) NASA Industrial Applications Center, Research Annex, Room 200, 
University of Southern California, 3716 South Hope Street, Los Angeles, 
CA 90007.
    (10) NASA/SU Industrial Applications Center, Southern University, 
Department of Computer Science, Baton Rouge, LA 70813-2065.
    (b) To obtain access to NASA-developed computer software, contact: 
Computer Software Management and Information Center (COSMIC), University 
of Georgia, Athens, GA 30602.



PART 1203--INFORMATION SECURITY PROGRAM--Table of Contents




                            Subpart A--Scope

Sec.
1203.100 Legal basis.
1203.101 Other applicable NASA regulations.

              Subpart B--NASA Information Security Program

1203.200 Background and discussion.
1203.201 Information security objectives.
1203.202 Responsibilities.
1203.203 Degree of protection.

         Subpart C--Classification Principles and Considerations

1203.300 General.
1203.301 Identification of information requiring protection.
1203.302 Combination, interrelation or compilation.
1203.303 Dissemination considerations.
1203.304 Internal effect.
1203.305 Restricted data.

              Subpart D--Guides for Original Classification

1203.400 Specific classifying guidance.

[[Page 12]]

1203.401 Effect of open publication.
1203.402 Classifying material other than documentation.
1203.403 State-of-the-art and intelligence.
1203.404 Handling of unprocessed data.
1203.405 Proprietary information.
1203.406 Additional classification factors.
1203.407 Duration of classification.
1203.408 Assistance by installation security classification officers.
1203.409 Exceptional cases.
1203.410 Limitations.
1203.411 Restrictions.
1203.412 Classification guides.

                  Subpart E--Derivative Classification

1203.500 Use of derivative classification.
1203.501 Applying derivative classification markings.

               Subpart F--Declassification and Downgrading

1203.600 Policy.
1203.601 Responsibilities.
1203.602 Authorization.
1203.603 Systematic review for declassification.
1203.604 Mandatory review for declassification.

                Subpart G--Foreign Government Information

1203.700 Identification.
1203.701 Classification.
1203.702 Duration of classification.
1203.703 Declassification.

 Subpart H--Delegation of Authority to Make Determinations in Original 
                         Classification Matters

1203.800 Delegations.
1203.801 Redelegation.
1203.802 Reporting.

         Subpart I--NASA Information Security Program Committee

1203.900 Establishment.
1203.901 Responsibilities.
1203.902 Membership.
1203.903 Ad hoc committees.
1203.904 Meetings.

    Authority: 42 U.S.C. 2451 et seq. and E.O. 12958, 60 FR 19825, 3 
CFR, 1995 Comp., p. 333.

    Source: 44 FR 34913, June 18, 1979, unless otherwise noted.



                            Subpart A--Scope



Sec. 1203.100  Legal basis.

    (a) Executive Order 12958 (hereinafter referred to as ``the 
Order''). The responsibilities and authority of the Administrator of 
NASA with respect to the original classification of official information 
or material requiring protection against unauthorized disclosure in the 
interest of national defense or foreign relations of the United States 
(hereinafter collectively termed ``national security''), and the 
standards for such classification, are established by the ``the Order'' 
(E.O. 12958, 3 CFR, 1996 Comp., p. 333), as amended (See, Order of 
October 13, 1995, 3 CFR, 1996 Comp., p. 513), and the Information 
Security Oversight Office Directive No. 1, as amended (32 CFR part 2001, 
``Classified National Security Information'');
    (b) E.O. 10865. Executive Order 10865 (24 FR 1583) requires the 
Administrator to prescribe by regulation such specific requirements, 
restrictions and other safeguards as the Administrator may consider 
necessary to protect:
    (1) Releases of classified information to or within United States 
industry that relate to contracts with NASA; and
    (2) Other releases of classified information to industry that NASA 
has responsibility for safeguarding.
    (c) The National Aeronautics and Space Act. (1) Section 304(a) of 
the National Aeronautics and Space Act of 1958, as amended (42 U.S.C. 
2451 et seq.), states in part:
    The Administrator shall establish such security requirements, 
restrictions, and safeguards as he deems necessary in the interest of 
the national security * * *
    (2) Section 303 of the Act states:
    Information obtained or developed by the Administrator in the 
performance of his functions under this Act shall be made available for 
public inspection, except (i) information authorized or required by 
Federal statute to be withheld, and (ii) information classified to 
protect the national security: Provided, That nothing in this Act shall 
authorize the withholding of information by the Administrator from the 
duly authorized committees of the Congress.

[44 FR 34913, June 18, 1979, as amended at 48 FR 5889, Feb. 9, 1983; 64 
FR 72535, Dec. 28, 1999]

[[Page 13]]



Sec. 1203.101  Other applicable NASA regulations.

    (a) Subpart H of this part, ``Delegation of Authority to Make 
Determinations in Original Security Classification Matters.''
    (b) Subpart I of this part, ``NASA Information Security Program 
Committee.''
    (c) NASA Handbook 1620.3, ``NASA Physical Security Handbook.''



              Subpart B--NASA Information Security Program



Sec. 1203.200  Background and discussion.

    (a) In establishing a civilian space program, the Congress required 
NASA to ``provide for the widest practicable and appropriate 
dissemination of information concerning its activities and the results 
thereof,'' and for the withholding from public inspection of that 
information that is classified to protect the national security.
    (b) In recognition of the essential requirement for an informed 
public concerning the activities of its Government, as well as the need 
to protect certain national security information from unauthorized 
disclosure, ``the Order'' was promulgated. It designates the National 
Aeronautics and Space Administration certain responsibility for matters 
pertaining to national security and confers on the Administrator of 
NASA, or such responsible officers or employees as the Administrator may 
designate, the authority for original classification of official 
information or material which requires protection in the interest of 
national security. It also provides for:
    (1) Basic classification, downgrading and declassification 
guidelines;
    (2) The issuance of directives prescribing the procedures to be 
followed in safeguarding classified information or material;
    (3) A monitoring system to ensure the effectiveness of the Order;
    (4) Appropriate administrative sanctions against officers and 
employees of the United States Government who are found to be in 
violation of the Order or implementing directive; and
    (5) Classification limitations and restrictions as discussed in 
Sec. Sec. 1203.410 and 1203.411.
    (c) ``The Order'' requires the timely identification and protection 
of that NASA information the disclosure of which would be contrary to 
the best interest of national security. Accordingly, the determination 
in each case must be based on a judgment as to whether disclosure of 
information could reasonably be expected to result in damage to the 
national security.

[44 FR 34913, June 18, 1979, as amended at 48 FR 5889, Feb. 9, 1983]



Sec. 1203.201  Information security objectives.

    The objectives of the NASA Information Security Program are to:
    (a) Ensure that information is classified only when a sound basis 
exists for such classification and only for such period as is necessary.
    (b) Prevent both the unwarranted classification and the 
overclassification of NASA information.
    (c) Ensure the greatest practicable uniformity within NASA in the 
classification of information.
    (d) Ensure effective coordination and reasonable uniformity with 
other Government departments and agencies, particularly in areas where 
there is an interchange of information, techniques or hardware.
    (e) Provide a timely and effective means for downgrading or 
declassifying information when the circumstances necessitating the 
original classification change or no longer exist.



Sec. 1203.202  Responsibilities.

    (a) The Chairperson, NASA Information Security Program Committee 
(Subpart I of this part), is responsible for:
    (1) Directing the NASA Information Security Program in accordance 
with NASA policies and objectives and applicable laws and regulations.
    (2) Ensuring effective compliance with and implementation of ``the 
Order'' and the Information Security Oversight Office Directive No. 1 
relating to security classification matters.

[[Page 14]]

    (3) Reviewing, in consultation with the NASA Information Security 
Program Committee, questions, suggestions, appeals and compliance 
concerning the NASA Information Security Program and making 
determinations concerning them.
    (4) Coordinating NASA security classification matters with NASA 
installations, the Department of Defense, the Department of Energy and 
other Government agencies.
    (5) Issuing Security Classification Guides for NASA programs and 
projects.
    (6) Developing, maintaining and recommending to the Administrator 
guidelines for the systematic review covering 30-year-old classified 
information under NASA's jurisdiction.
    (7) Reviewing and coordinating with appropriate offices all appeals 
of denials of requests for records under sections 552 and 552a of Title 
5, United States Code (Freedom of Information and Privacy Acts) when the 
denials are based on the records continued classification.
    (8) Recommending to the Administrator appropriate administrative 
action to correct abuse or violations of any provision of the NASA 
Information Security Program, including notifications by warning letter, 
formal reprimand and to the extent permitted by law, suspension without 
pay and removal.
    (b) All NASA employees are responsible for bringing to the attention 
of the Chairperson of the NASA Information Security Program Committee 
any information security problems in need of resolution, any areas of 
interest wherein information security guidance is lacking, and any other 
matters likely to impede achievement of the objectives prescribed 
herein.
    (c) Each NASA official to whom the authority for original 
classification is delegated shall be accountable for the propriety of 
each classification (see subpart H) and is responsible for:
    (1) Ensuring that classification determinations are consistent with 
the policy and objectives prescribed above, and other applicable 
guidelines.
    (2) Bringing to the attention of the Chairperson, NASA Information 
Security Program Committee, for resolution, any disagreement with 
classification determinations made by other NASA officials.
    (3) Ensuring that information and material which no longer requires 
its present level of protection is promptly downgraded or declassified 
in accordance with applicable guidelines.
    (d) Other Officials-in-Charge of Headquarters Offices are 
responsible for:
    (1) Ensuring that classified information or material prepared within 
their respective offices is appropriately marked.
    (2) Ensuring that material proposed for public release is reviewed 
to eliminate classified information.
    (e) Directors of Field Installations are responsible for:
    (1) Developing proposed Security Classification Guides.
    (2) Ensuring that classified information or material prepared in 
their respective installations is appropriately marked.
    (3) Ensuring that material proposed for public release is reviewed 
to eliminate classified information.
    (4) Designating Security Classification Officers at their respective 
installations, to whom responsibilities listed in paragraphs (e)(1), 
(2), and (3) of this section may be reassigned.
    (f) The Senior Security Specialist, NASA Security Office, NASA 
Headquarters, who serves as a member and Executive Secretary of the NASA 
Information Security Program Committee, is responsible for the NASA-wide 
coordination of security classification matters.
    (g) The Director, NASA Security Management Office, is responsible 
for establishing procedures for the safeguarding of classified 
information or material (e.g., accountability, control, access, storage, 
transmission, and marking) and for ensuring that such procedures are 
systematically reviewed; and those which are duplicative or unnecessary 
are eliminated.

[44 FR 34913, June 18, 1979, as amended at 45 FR 3888, Jan. 21, 1980; 48 
FR 5890, Feb. 9, 1983; 53 FR 41318, Oct. 21, 1988; 64 FR 72535, Dec. 28, 
1999]

[[Page 15]]



Sec. 1203.203  Degree of protection.

    (a) General. Upon determination that information or material must be 
classified, the degree of protection commensurate with the sensitivity 
of the information must be determined. If there is reasonable doubt 
about the need to classify information, it shall be safeguarded as if it 
were classified pending a determination by an original classification 
authority, who shall make this determination within 30 days. If there is 
reasonable doubt about the appropriate level of classification, it shall 
be safeguarded at the higher level of classification pending a 
determination by an original classification authority, who shall make 
this determination within 30 days.
    (b) Authorized categories of classification. The three categories of 
classification, as authorized and defined in ``the Order,'' are set out 
below. No other restrictive markings are authorized to be placed on NASA 
classified documents or materials except as expressly provided by 
statute or by NASA Directives.
    (1) Top Secret. Top Secret is the designation applied to information 
or material the unauthorized disclosure of which could reasonably be 
expected to cause exceptionally grave damage to the national security. 
Examples of exceptionally grave damage include armed hostilities against 
the United States or its allies; disruption of foreign relations vitally 
affecting the national security; the compromise of vital national 
defense plans or complex cryptologic and communications intelligence 
systems; the revelation of sensitive intelligence operations; and the 
disclosure of scientific or technological developments vital to national 
security.
    (2) Secret. Secret is the designation applied to information or 
material the unauthorized disclosure of which could reasonably be 
expected to cause serious damage to the national security. Examples of 
serious damage include disruption of foreign relations significantly 
affecting the national security; significant impairment of a program or 
policy directly related to the national security; revelation of 
significant military plans or intelligence operations; and compromise of 
significant scientific or technological developments relating to 
national security.
    (3) Confidential. Confidential is the designation applied to that 
information or material for which the unauthorized disclosure could 
reasonably be expected to cause damage to the national security.

[44 FR 34913, June 18, 1979, as amended at 48 FR 5890, Feb. 9, 1983]



         Subpart C--Classification Principles and Considerations



Sec. 1203.300  General.

    In general, the types of NASA-generated information and material 
requiring protection in the interest of national security lie in the 
areas of applied research, technology or operations.



Sec. 1203.301  Identification of information requiring protection.

    Classifiers shall identify the level of classification of each 
classified portion of a document (including subject and titles), and 
those portions that are not classified.



Sec. 1203.302  Combination, interrelation or compilation.

    An interrelationship of individual items, classified or 
unclassified, may result in a combined item requiring a higher 
classification than that of any of the individual items. Compilations of 
unclassified information are considered unclassified unless some 
additional significant factor is added in the process of compilation. 
For example:
    (a) The way unclassified information is compiled may be classified;
    (b) The fact that the information is complete for its intended 
purpose may be classified; or
    (c) The fact the compilation represents an official evaluation may 
be classified. In these cases, the compilations would be classified.



Sec. 1203.303  Dissemination considerations.

    The degree of intended dissemination, use of the information and 
whether the end purpose to be served renders effective security control 
impractical

[[Page 16]]

are considerations during the classification process. These factors do 
not necessarily preclude classification, but must be considered in order 
not to impose security controls which are impractical to enforce.



Sec. 1203.304  Internal effect.

    The effect of security protection on program progess and cost and on 
other functional activities of NASA should be considered. Impeditive 
effects and added costs inherent in a security classification must be 
assessed in light of the detrimental effects on the national security 
interests which would result from failure to classify.



Sec. 1203.305  Restricted data.

    Restricted Data or Formerly Restricted Data is so classified when 
originated, as required by the Atomic Energy Act of 1954, as amended. 
Specific guidance for the classification of Restricted Data is provided 
in ``Classification Guides'' published by the Department of Energy.



              Subpart D--Guides for Original Classification



Sec. 1203.400  Specific classifying guidance.

    Technological and operational information and material, and in some 
exceptional cases scientific information falling within any one or more 
of the following categories, must be classified if its unauthorized 
disclosure could reasonably be expected to cause damage to the national 
security. In cases where it is believed that a contrary course of action 
would better serve the national interests, the matter should be referred 
to the Chairperson, NASA Information Security Program Committee, for a 
determination. It is not intended that this list be exclusive; original 
classifiers are responsible for initially classifying any other type of 
information which, in their judgment, requires protection under ``the 
Order.''
    (a) Information which provides the United States, in comparison with 
other nations, with a significant scientific, engineering, technical, 
operational, intelligence, strategic, tactical or economic advantage 
related to national security.
    (b) Information which, if disclosed, would significantly diminish 
the technological lead of the United States in any military system, 
subsystem or component, and would result in damage to such a system, 
subsystem or component.
    (c) Scientific or technological information in an area where an 
advanced military application that would in itself be classified is 
foreseen during exploratory development.
    (d) Information which, if known, would:
    (1) Provide a foreign nation with an insight into the defense 
application or the war or defense plans or posture of the United States;
    (2) Allow a foreign nation to develop, improve or refine a similar 
item of defense application;
    (3) Provide a foreign nation with a base upon which to develop 
effective countermeasures;
    (4) Weaken or nullify the effectiveness of a defense or military 
plan, operation, project, weapon system or activity which is vital to 
the national security.
    (e) Information or material which is important to the national 
security of the United States in relation to other nations when there is 
sound reason to believe that those nations are unaware that the United 
States has or is capable of obtaining the information or material; i.e., 
through intelligence activities, sources, or methods.
    (f) Information which if disclosed could be exploited in a manner 
prejudicial to the national security posture of the United States by 
discrediting its technological power, capability or intentions.
    (g) Information which reveals an unusually significant scientific or 
technological ``breakthrough'' which there is sound reason to believe is 
not known to or within the state-of-the-art capability of other nations. 
If the ``breakthrough'' supplies the United States with an important 
advantage of a technological nature, classification also would be 
appropriate if the potential application of the information, although 
not specifically visualized, would afford the United States a 
significant national security advantage in terms of technological lead 
time or an

[[Page 17]]

economic advantage relating to national security.
    (h) Information of such nature that an unfriendly government in 
possession of it would be expected to use it for purposes prejudicial to 
U.S. national security and which, if classified, could not be obtained 
by an unfriendly power without a considerable expenditure of resources.
    (i) Information which if disclosed to a foreign government would 
enhance its military research and development programs to the detriment 
of U.S. counterpart or competitive programs.
    (j) Operational information pertaining to the command and control of 
space vehicles, the possession of which would facilitate malicious 
interference with any U.S. space mission, that might result in damage to 
the national security.
    (k) Information which if disclosed could jeopardize the foreign 
relations or activities of the United States; for example, the premature 
or unauthorized release of information relating to the subject matter of 
international negotiations, foreign government information or 
information regarding the placement or withdrawal of NASA tracking 
stations on foreign territory.
    (l) United States Government programs for safeguarding nuclear 
materials or facilities.
    (m) Other categories of information which are related to national 
security and which require protection against unauthorized disclosure as 
may be determined by the Administrator. The Chairperson, NASA 
Information Security Program Committee, will promptly inform the 
Director, Information Security Oversight Office, General Services 
Administration (GSA) of such determinations.

[44 FR 34913, June 18, 1979, as amended at 48 FR 5890, Feb. 9, 1983]



Sec. 1203.401  Effect of open publication.

    Public disclosure, regardless of source or form, of information 
currently classified or being considered for classification does not 
preclude initial or continued classification. However, such disclosure 
requires an immediate reevaluation to determine whether the information 
has been compromised to the extent that downgrading or declassification 
is indicated. Similar consideration must be given to related items of 
information in all programs, projects, or items incorporating or 
pertaining to the compromised items of information. In these cases, if a 
release were made or authorized by an official Government source, 
classification of clearly identified items may no longer be warranted. 
Questions as to the propriety of continued classification should be 
referred to the Chairperson, NASA Information Security Program 
Committee.



Sec. 1203.402  Classifying material other than documentation.

    Items of equipment or other physical objects may be classified only 
where classified information may be derived by visual observation of 
internal or external appearance, structure, operation, test, application 
or use. The overall classification assigned to equipment or objects 
shall be at least as high as the highest classification of any of the 
items of information which may be revealed by the equipment or objects, 
but may be higher if the classifying authority determines that the sum 
of classified or unclassified information warrants such higher 
classification. In every instance where classification of an item of 
equipment or object is determined to be warranted, such determination 
must be based on a finding that there is at least one aspect of the item 
or object which requires protection. If mere knowledge of the existence 
of the equipment or object would compromise or nullify the reason or 
justification for its classification, the fact of its existence should 
be classified.



Sec. 1203.403  State-of-the-art and intelligence.

    A logical approach to classification requires consideration of the 
extent to which the same or similar information available from 
intelligence sources is known or is available to others. It is also 
important to consider whether it is known publicly, either domestically 
or internationally, that the United States has the information or even 
is interested in the subject matter. The known state-of-the-art in other 
nations

[[Page 18]]

is an additional substantive factor requiring consideration.



Sec. 1203.404  Handling of unprocessed data.

    It is the usual practice to withhold the release of raw scientific 
data received from spacecraft until it can be calibrated, correlated and 
properly interpreted by the experimenter under the monitorship of the 
cognizant NASA office. During this process, the data are withheld 
through administrative measures, and it is not necessary to resort to 
security classification to prevent premature release. However, if at any 
time during the processing of raw data it becomes apparent that the 
results require protection under the criteria set forth in this subpart 
D, it is the responsibility of the cognizant NASA office to obtain the 
appropriate security classification.



Sec. 1203.405  Proprietary information.

    Proprietary information made available to NASA is subject to 
examination for classification purposes under the criteria set forth in 
this subpart D. Where the information is in the form of a proposal and 
accepted by NASA for support, it should be categorized in accordance 
with the criteria of Sec. 1203.400. If NASA does not support the 
proposal but believes that security classification would be appropriate 
under the criteria of Sec. 1203.400 if it were under Government 
jurisdiction, the contractor should be advised of the reasons why 
safeguarding would be appropriate, unless security considerations 
preclude release of the explanation to the contractor. NASA should 
identify the Government department, agency or activity whose national 
security interests might be involved and the contractor should be 
instructed to protect the proposal as though classified pending further 
advisory classification opinion by the Government activity whose 
interests are involved. If such a Government activity cannot be 
identified, the contractor should be advised that the proposal is not 
under NASA jurisdiction for classification purposes, and that the 
information should be sent, under proper safeguards, to the Director, 
Information Security Oversight Office, General Services Administration, 
Washington, DC 20405, for a determination.



Sec. 1203.406  Additional classification factors.

    In determining the appropriate classification category, the 
following additional factors should be considered:
    (a) Uniformity within government activities. The effect 
classification will have on technological programs of other Government 
departments and agencies should be considered. Classification of 
official information must be reasonably uniform within the Government.
    (b) Applicability of classification directives of other Government 
agencies. It is necessary to determine whether authoritative 
classification guidance exists elsewhere for the information under 
consideration which would make it necessary to assign a higher 
classification than that indicated by the applicable NASA guidance. 
Generally, the classification by NASA should not be higher than that of 
equivalent information in other departments or agencies of the 
Government.



Sec. 1203.407  Duration of classification.

    (a) Information shall be classified as long as required by national 
security considerations. When it can be determined, a specific date or 
event for declassification shall be set by the original classification 
authority at the time the information is originally classified.
    (b) Information classified under predecessor orders and marked for 
declassification review shall remain classified until reviewed for 
declassification under the provisions of the ``the Order.''

[48 FR 5890, Feb. 9, 1983]



Sec. 1203.408  Assistance by installation security classification officers.

    Installation Security Classification Officers, as the installation 
point-of-contact, will assist installation personnel in:
    (a) Interpreting security classification guides and classification 
assignments for the installation.
    (b) Answering questions and considering suggestions concerning 
security classification matters.

[[Page 19]]

    (c) Ensuring a continuing review of classified information for the 
purpose of declassifying or downgrading in accordance with subpart E of 
this part.
    (d) Reviewing and approving, as the representative of the 
contracting officer, the DD Form 254, Contract Security Classification 
Specification, issued to contractors by the installation.



Sec. 1203.409  Exceptional cases.

    (a) In those cases where a person not authorized to classify 
information orginates or develops information which is believed to 
require classification, that person should safeguard the material as 
though it were classified until it has been evaluated and a decision 
made by an appropriate classifying authority. For NASA employees the 
classifying authority is normally the Installation Security 
Classification Officer. Persons other than NASA employees should 
forward, under appropriate safeguards, material in which NASA has 
primary interest to the NASA Information Security Program Committee, 
Security Division, Washington, DC 20546 for a classification 
determination.
    (b) Information in which NASA does not have primary interest shall 
be returned promptly, under appropriate safeguards, to the sender in 
accordance with Sec. 1203.405.
    (c) Material received from another agency for a NASA security 
classification determination shall be processed within 30 days. If a 
classification cannot be determined during that period, the material 
shall be sent, under appropriate safeguards, to the Director, 
Information Security Oversight Office, GSA, for a determination.



Sec. 1203.410  Limitations.

    (a) Classification may not be used to conceal violations of law, 
inefficiency of administrative error; to prevent embarrassment to a 
person, organization or agency; or to restrain competition.
    (b) Basic scientific research information not clearly related to the 
national security may not be classified.
    (c) A product of non-government research and development that does 
not incorporate or reveal classified information to which the producer 
or developer was given prior access may not be classified under this 
part 1203 until and unless the Government acquires a proprietary 
interest in the product. This part does not affect the provisions of the 
Patent Secrecy Act of 1952 (35 U.S.C. 181-188).
    (d) References to classified documents that do not disclose 
classified information may not be classified or used as a basis for 
classification.
    (e) Classification may not be used to limit dissemination of 
information that is not classifiable under the provisions of this part 
or to prevent or delay the public release of such information.
    (f) Information may be classified or reclassified after receipt of a 
request for it under the Freedom of Information Act (5 U.S.C. 552) or 
the Privacy Act of 1974 (5 U.S.C. 552a), or the mandatory review 
provisions of ``the Order'' if such classification meets the 
requirements of ``the Order'' and is accomplished personally on a 
document-by-document basis by an official with original Top Secret 
classification authority.
    (g) The Administrator, the Chairperson, NASA Information Security 
Program Committee, or an official with original Top Secret 
classification authority may reclassify information previously 
declassified and disclosed if it is determined in writing that (1) The 
information requires protection in the interest of national security; 
and (2) the information may reasonably be recovered. These 
reclassification actions shall be reported promptly to the Director of 
the Information Security Oversight Office, GSA.

[44 FR 34913, June 18, 1979, as amended at 48 FR 5890, Feb. 9, 1983]



Sec. 1203.411  Restrictions.

    (a) Except as provided by directives issued by the President through 
the National Security Council, classified information originating in one 
agency may not be disseminated outside any other agency to which it has 
been made available without the consent of the originating agency. For 
purposes of this section, the Department of Defense shall be considered 
one agency.
    (b) Classified information shall not be disseminated outside the 
Executive Branch except under conditions that ensure the information 
will be given

[[Page 20]]

protection equivalent to that afforded within the Executive Branch.

[48 FR 5890, Feb. 9, 1983]



Sec. 1203.412  Classification guides.

    (a) General. A classification guide, based upon classification 
determinations made by appropriate program and classification 
authorities, shall be issued for each classified system, program or 
project. Classification guides shall:
    (1) Identify the information elements to be protected, using 
categorization and subcategorization to the extent necessary to ensure 
that the information involved can be readily and uniformly identified.
    (2) State which of the classification designations (i.e., Top 
Secret, Secret or Confidential) apply to the identified information 
elements.
    (3) State the duration of each specified classification in terms of 
a period of time or future event. Whenever a specific time or future 
event for declassification cannot be predetermined, the following 
notation will be used: DECLASSIFY ON: Originating Agency's Determination 
Required or ``OADR.''
    (4) Indicate specifically that the designations, time limits, 
markings and other requirements of ``the Order'' are to be applied to 
information classified pursuant to the guide.
    (5) Be approved personally and in writing by an official with 
original Top Secret classification authority; the identity of the 
official will be shown on the guide. Such approval constitutes an 
original classification decision. Normally, all guides will be approved 
by the Chairperson, NASA Information Security Program Committee, whose 
office will maintain a list of all classification guides in current use.
    (b) Review of classification guides. Classification guides shall be 
reviewed by the originator for currency and accuracy not less than once 
every two years. Changes shall be in strict conformance with the 
provisions of this part 1203 and shall be issued promptly. If no changes 
are made, the originator shall so annotate the record copy and show the 
date of the review.

[44 FR 34913, June 18, 1979, as amended at 48 FR 5891, Feb. 9, 1983]



                  Subpart E--Derivative Classification



Sec. 1203.500  Use of derivative classification.

    The application of derivative classification markings is a 
responsibility of those who incorporate, paraphrase, restate, or 
generate in new form information that is already classified, and of 
those who apply markings in accordance with instructions from an 
authorized original classifier or in accordance with an authorized 
classification guide. If a person who applied derivative classification 
markings believes that the paraphrasing, restating, or summarizing of 
classified information has changed the level of or removed the basis for 
classification, that person must consult for a determination with an 
appropriate official of the originating agency or office of origin who 
has the authority to upgrade, downgrade, or declassify the information.

[48 FR 5891, Feb. 9, 1983]



Sec. 1203.501  Applying derivative classification markings.

    Persons who apply derivative classification markings shall:
    (a) Observe and respect original classification decisions:
    (b) Verify the information's current level of classification so far 
as practicable before applying the markings; and
    (c) Carry forward to newly created documents any assigned authorized 
markings. The declassification date or event that provides the longest 
period of classification shall be used for documents classified on the 
basis of multiple sources.

[44 FR 34913, June 18, 1979, as amended at 48 FR 5891, Feb. 9, 1983]



               Subpart F--Declassification and Downgrading



Sec. 1203.600  Policy.

    Information shall be declassified or downgraded as soon as national 
security considerations permit. NASA reviews of classified information 
shall be coordinated with other agencies that have a direct interest in 
the subject matter. Information that continues to

[[Page 21]]

meet the classification requirements prescribed by Sec. 1203.400 
despite the passage of time will continue to be protected in accordance 
with ``the Order.''

[48 FR 5891, Feb. 9, 1983]



Sec. 1203.601  Responsibilities.

    Officials authorized original classification authority may 
declassify or downgrade information that is subject to the final 
classification jurisdiction of NASA and shall take such action in 
accordance with the provisions of this subpart F.



Sec. 1203.602  Authorization.

    Information shall be declassified or downgraded by the official who 
authorized the original classification, if that official is still 
serving in the same position, the originator's successor, a supervisory 
official of either, or officials delegated such authority in writing by 
the Administrator or the Chairperson, NASA Information Security Program 
Committee.

[48 FR 5891, Feb. 9, 1983]



Sec. 1203.603  Systematic review for declassification.

    (a) General. (1) Except for foreign government information as 
provided in subpart G of this part, classified information constituting 
permanently valuable records of the government as defined by 44 U.S.C. 
2103, and information in the possession and control of the Administrator 
of General Services Administration pursuant to 44 U.S.C. 2107 or 2107 
note, shall be reviewed for declassification as it becomes 30 years old.
    (2) Systematic review for declassification of classified cryptologic 
information will be coordinated through the National Security Agency.
    (3) Systematic review for declassification of classified information 
pertaining to intelligence activities (including special activities) or 
intelligence sources or methods will be coordinated through the Central 
Intelligence Agency.
    (4) The Chairperson, NASA Information Security Program Committee, 
shall designate experienced personnel to assist the Archivist of the 
United States in the systematic review of 30-year old U.S. originated 
information and 30-year old foreign information. Such personnel shall:
    (i) Provide guidance and assistance to National Archives and Records 
Service employees in identifying and separating documents and specific 
categories of information within documents which are deemed to require 
continued classification; and
    (ii) Develop reports of information or document categories so 
separated, with recommendations concerning continued classification.
    (b) Systematic review guidelines. The Chairperson, NASA Information 
Security Program Committee, shall develop, in coordination with NASA 
organizational elements, guidelines for the systematic review for 
declassification of 30-year old classified information under NASA's 
jurisdiction. (See subpart G of this part, Foreign Government 
Information.) The guidelines shall state specific limited categories of 
information which, because of their national security sensitivity, 
should not be declassified automatically but should be reviewed item-by-
item to determine whether continued protection beyond 30 years is 
needed. These guidelines are authorized for use by the Archivist of the 
United States and, with the approval of the Administrator, by an agency 
having custody of the information covered by the guidelines. All 
information, except foreign government information, cryptologic 
information, and information pertaining to intelligence sources or 
methods, not identified in these guidelines as requiring review and for 
which a prior automatic declassification date has not been established 
shall be declassified automatically at the end of 30 years from the date 
of original classification. These guidelines shall be reviewed at least 
every 5 years and revised as necessary unless an earlier review for 
revision is requested by the Archivist of the United States. Copies of 
the declassification guidelines promulgated by NASA will be provided to 
the Information Security Oversight Office, GSA.
    (c) Systematic review procedures. (1) All security classified 
records 30 years old or older, whether held in storage areas under 
installation control or in Federal Records Centers, will be surveyed to

[[Page 22]]

identify those that require scheduling for future disposition.
    (2) All NASA information or material in the custody of the National 
Archives and Records Service that is permanently valuable and more than 
30 years old is to be systematically reviewed for declassification by 
the Archivist of the United States with the assistance of the personnel 
designated for the purpose pursuant to paragraph (a)(4)(i) of this 
section. The Archivist shall refer to NASA that information or material 
which NASA has indicated requires further review. In the case of 30-year 
old information or material in the custody of NASA installations, such 
review will be accomplished by the custodians of the information or 
material. The installation having primary jurisdication over the 
information or material received from the Archivist or in its custody, 
shall proceed as follows:
    (i) Classified information or material over which NASA exercises 
exclusive or final original classification authority and which is to be 
declassified in accordance with the systematic review guidelines 
developed under paragraph (b) of this section shall be so marked.
    (ii) Classified information or material over which NASA exercises 
exclusive or final original classification authority and which, in 
accordance with the systematic review guidelines developed under 
paragraph (b) of this section, is to be kept protected, shall be listed 
by category by the responsible custodian and referred to the 
Chairperson, NASA Information Security Program Committee. This listing 
shall:
    (A) Identify the information or material involved.
    (B) Recommend classification beyond 30 years to a specific event 
scheduled to happen or a specific period of time or, the alternative, 
recommend: DECLASSIFY ON: Originating Agency's Determination Required or 
``OADR.''
    (iii) The Administrator shall consider and determine which category 
shall be kept classified and the dates or event for declassification. 
Whenever a specific time or future event for declassification cannot be 
predetermined, the following notation will be applied: DECLASSIFY ON: 
Originating Agency's Determination Required or ``OADR.'' The Archivist 
of the United States will be notified in writing of this decision.
    (d) Declassification by the Director of the Information Security 
Oversight Office, GSA. If the Director of the Information Security 
Oversight Office, GSA, determines that NASA information is classified in 
violation of ``the Order,'' the Director may require the information to 
be declassified. Any such decision by the Director may be appealed 
through the NASA Information Security Program Committee to the National 
Security Council. The information shall remain classified pending a 
prompt decision on the appeal.

[48 FR 5891, Feb. 9, 1983]



Sec. 1203.604  Mandatory review for declassification.

    (a) Information covered. All information classified under ``the 
Order'' or predecessor orders, except as provided at Sec. 1203.604(b) 
shall be subject to a review for declassification by the originating 
agency, if:
    (1) The request is made by a United States citizen or permanent 
resident alien, a Federal agency, or a State or local government; and
    (2) The request describes the document or material containing the 
information with sufficient specificity to enable the agency to locate 
it with a reasonable amount of effort. After review, the information or 
any reasonable segregable portion thereof that no longer requires 
protection shall be declassified and released unless withholding is 
otherwise warranted under applicable law.
    (b) Presidential papers. (1) Information originated by a President, 
the White House Staff, by committees, commissions, or boards appointed 
by the President, or others specifically providing advice and counsel to 
a President or acting on behalf of a President is exempted from the 
provisions of Sec. 1203.604(a).
    (2) The Archivist of the United States shall have the authority to 
review, downgrade and declassify information under the control of the 
Administrator of General Services Administration or the Archivist 
pursuant to sections 2107, 2107 note, or 2203 of Title 44, U.S. Code. 
Review procedures developed by the Archivist shall provide for 
consultation

[[Page 23]]

with NASA in matters of primary subject interest to NASA.
    (c) Submission of requests for review. Requests for mandatory review 
of classified information shall be submitted in accordance with the 
following:
    (1) Requests originating within NASA shall, in all cases, be 
submitted directly to the NASA installation which originated the 
information.
    (2) For most expeditious action, requests from other Governmental 
agencies or from members of the public should be submitted directly to 
NASA installations which originated the material, or, if the originating 
component is not known, the requestor may submit the request to:
    (i) The Chairperson, NASA Information Security Program Committee; or 
the head of the NASA organization most concerned with the subject matter 
of the material requested; or
    (ii) The office designated to receive requests for records 
specifically citing the Freedom of Information Act pursuant to part 1206 
of this chapter.
    (d) Requirement for processing. (1) Requests which are submitted 
under the Freedom of Information Act shall be processed in accordance 
with part 1206 of this chapter.
    (2) Other requests for declassification review and release of 
information shall be processed in accordance with the provisions of this 
section, subject to the following conditions:
    (i) The request is in writing and reasonably describes the 
information sought with sufficient particularity to enable the 
installation to identify it.
    (ii) The requestor shall be asked to correct a request that does not 
comply with paragraph (d)(2)(i) of this section, to provide additional 
information or to narrow the scope of the request and shall be notified 
that no action will be taken until the requestor complies.
    (iii) If the request requires the rendering of services for which 
fees may not be charged under part 1206, but may be charged under 31 
U.S.C. 483a (1976), the rates prescribed in Sec. 1206.700 shall be 
used, if appropriate.
    (e) Processing of requests. Requests that meet the requirements of 
paragraph (d)(2) of this section will be processed as follows:
    (1) NASA installation action upon the initial request shall be 
completed within 60 days.
    (2) Receipt of the request shall be acknowledged promptly. The NASA 
installation shall determine whether, under the declassification 
provisions of this part 1203, the requested information may be 
declassified and, if so, shall make such information available to the 
requestor, unless withholding is otherwise warranted under applicable 
law. If the information may not be released in whole or in part, the 
requestor shall be given a brief statement of the reasons for denial, a 
notice of the right to appeal the determination to the Chairperson, NASA 
Information Security Program Committee, National Aeronautics and Space 
Administration, Washington, DC 20546, and a notice that such an appeal 
must be filed within 60 days in order to be considered.
    (3) All appeals of denials of requests for declassification shall be 
acted upon and determined finally within 30 days after receipt and the 
requestor shall be advised that the appeal determination is final. If 
continued classification is required under the provisions of this part 
1203, the requestor shall be notified of the reasons thereof.
    (4) The declassification and release of foreign government 
information that is subjected to mandatory review under this section 
shall be determined only in accordance with Sec. 1203.703.
    (5) When a NASA installation receives any request for 
declassification of information in documents in its custody that was 
classified by another NASA installation or Government agency, it shall 
refer copies of the request and the requested documents to the 
originating installation or agency for processing, and may, after 
consultation with the originating installation or agency, inform the 
requester of the referral. In cases in which the originating NASA 
installation determines in writing that a response under Sec. 
1203.604(f) is indicated, such cases will be promptly forwarded to the 
Chairperson, NASA Information Security Program Committee, for final 
resolution and appropriate response.

[[Page 24]]

    (f) Neutral response. In response to a request for information under 
the Freedom of Information Act, the Privacy Act of 1974, or the 
mandatory review provisions of ``the Order,'' NASA shall refuse to 
confirm or deny the existence or non-existence of requested information 
whenever the fact of its existence or non-existence is itself 
classifiable under ``the Order.''
    (g) Declassification of transferred documents or material--(1) 
Material officially transferred. In the case of classified information 
or material transferred by or pursuant to statute or Executive Order to 
NASA in conjunction with a transfer of functions (not merely for storage 
purposes) for NASA's use and as part of its official files or property, 
as distinguished from transfers merely for purposes of storage, NASA 
shall be deemed to be the original classifying authority over such 
material for purposes of downgrading and declassification.
    (2) Material not officially transferred. When any NASA installation 
has in its possession classified information or material originated by 
an agency which has since ceased to exist and that information has not 
been officially transferred to another department or agency, or when it 
is impossible for the possessing NASA installation to identify the 
originating agency, and a review of the material indicates that it 
should be downgraded or declassified, the possessing NASA installation 
shall be deemed to be the originating agency for the purpose of 
declassifying or downgrading such material. If it appears probable that 
another agency or another NASA organization may have a substantial 
interest in whether the classification of any particular information 
should be maintained, the possessing NASA installation shall not 
exercise the power conferred upon it by this paragraph, until after 
consultation with any other agency or NASA organization having an 
interest in the subject matter.
    (3) Transfer for storage or retirement. (i) Insofar as practicable, 
classified documents shall be reviewed to determine whether or not they 
can be downgraded or declassified prior to being forwarded to records 
centers or to the National Archives for storage. Any downgrading or 
declassification determination shall be indicated on each document by 
appropriate markings.
    (ii) Classified information transferred to the General Services 
Administration for accession into the Archives of the United States 
shall be downgraded or declassified by the Archivist of the United 
States in accordance with ``the Order,'' the directives of the 
Information Security Oversight Office, GSA, and NASA guidelines.
    (h) Downgrading and declassification actions--(1) Notification of 
changes in classification or declassification. When classified material 
has been marked with specific dates or events for downgrading or 
declassification, it is not necessary to issue notices of such actions 
to any holders. However, when such actions are taken earlier than 
originally scheduled, or the duration of classification is shortened, 
the authority making such changes shall, to the extent practicable, 
ensure prompt notification to all addressees to whom the information or 
material was originally transmitted. The notification shall specify the 
marking action to be taken, the authority therefor, and the effective 
date. Upon receipt of notification, recipients shall effect the proper 
changes and shall notify addressees to whom they have transmitted the 
classified information or material.
    (2) Posted notice. If prompt remarking of large quantities would be 
unduly burdensome, the custodian may attach declassification, 
downgrading, or upgrading notices to the storage unit in lieu of the 
remarking action otherwise required. Each notice shall indicate the 
change, the authority for the action, the date of the action, and the 
storage units to which it applies. Items withdrawn from such storage 
units shall be promptly remarked. However, when information subject to a 
posted downgrading or declassification notice is withdrawn from one 
storage unit solely for transfer to another, or a storage unit 
containing such information is transferred from one place to another, 
the transfer may be made without remarking if the notice is attached to 
or remains with each shipment.
    (i) Foreign Relations Series. In order to permit the State 
Department editors of Foreign Relations of the United States to meet 
their mandated goal of publishing

[[Page 25]]

20 years after the event, NASA shall assist these editors by 
facilitating access to appropriate classified materials in its custody 
and by expediting declassification review of items from its files 
selected for publication.
    (ii) [Reserved]

[44 FR 34913, June 18, 1979, as amended at 45 FR 3888, Jan. 21, 1980; 48 
FR 5892, Feb. 9, 1983; 53 FR 41318, Oct. 21, 1988]



                Subpart G--Foreign Government Information



Sec. 1203.700  Identification.

    In order to qualify as foreign government information, information 
must fall into one of the two following categories:
    (a) Information provided to the United States by a foreign 
government or international organization of governments, such as the 
North Atlantic Treaty Organizatiuon (NATO), where the United States has 
undertaken an obligation, expressed or implied, to keep the information 
in confidence. The information is considered to have been provided in 
confidence if it is marked in a manner indicating it is to be treated in 
confidence or if the circumstances of the delivery indicate that the 
information be kept in confidence.
    (b) Information requiring confidentiality produced by the United 
States pursuant to a written, joint arrangement with a foreign 
government or international organization of governments. A written, 
joint arrangement may be evidenced by an exchange of letters, a 
memorandum of understanding, or other written record of the joint 
arrangement.



Sec. 1203.701  Classification.

    (a) Foreign government information that is classified by a foreign 
entity shall either retain its original classification designation or be 
marked with a United States classification designation that will ensure 
a degree of protection equivalent to that required by the entity that 
furnished the information. Original classification authority is not 
required for this purpose.
    (b) Foreign government information that was not classified by a 
foreign entity but was provided to NASA with the expressed or implied 
obligation that it be held in confidence must be classified. ``The 
Order'' states that unauthorized disclosure of foreign government 
information, the identity of a confidential foreign source, or 
intelligence sources or methods is presumed to cause damage to the 
national security. Therefore, such foreign government information shall 
be classified at least Confidential. However, at the time of 
classification, judicious consideration shall be given to the 
sensitivity of the subject matter and the impact of its unauthorized 
disclosure upon both the United States and the originating foreign 
government or organization of governments in order to determine the most 
appropriate level of classification. Levels above Confidential must be 
assigned by an original classification authority.

[44 FR 34913, June 18, 1979, as amended at 48 FR 5892, Feb. 9, 1983]



Sec. 1203.702  Duration of classification.

    Unless the guidelines for the systematic review of 30-year old 
foreign government information developed pursuant to Sec. 1203.603(b) 
prescribe dates or events for declassification:
    (a) Foreign government information shall not be assigned a date or 
event for declassification unless such is specified or agreed to by the 
foreign entity.
    (b) Foreign government information classified after December 1, 
1978, shall be annotated: DECLASSIFY ON: Originating Agency's 
Determination Required or ``OADR.''

[48 FR 5893, Feb. 9, 1983]



Sec. 1203.703  Declassification.

    (a) Information classified in accordance with Sec. 1203.400 shall 
not be declassified automatically as a result of any unofficial 
publication or inadvertent or unauthorized disclosure in the United 
States or abroad of identical or similar information.
    (b) Following consultation with the Archivist of the United States 
and where appropriate, with the foreign government or international 
organization concerned and with the assistance of the Department of 
State, NASA will

[[Page 26]]

issue guidelines for the systematic review of 30-year old foreign 
government information that will apply to foreign government information 
of primary concern to NASA. These guidelines are authorized for use by 
the Archivist of the United States and, with the approval of NASA, by an 
agency having custody of such information. The Chairperson, NASA 
Information Security Program Committee, will initiate administrative 
functions necessary to effect review of these guidelines at least once 
every 5 years and submit recommendations to the Administrator based on 
these reviews. If, after applying the guidelines to 30-year old foreign 
government information, a determination is made by the reviewer that 
classification is necessary, a date for declassification or DECLASSIFY 
ON: Originating Agency's Determination Required or ``OADR'' shall be 
shown on the face of the document.
    (c) Requests for mandatory review for declassification of foreign 
government information shall be processed and acted upon in accordance 
with the provisions of Sec. 1203.603 except that foreign government 
information will be declassified only in accordance with the guidelines 
developed for that purpose under Sec. 1203.702 and after consultation 
with other Government agencies with subject matter interest as 
necessary. In those cases where these guidelines cannot be applied to 
the foreign government information requested, the foreign originator 
normally should be consulted, through appropriate channels, prior to 
final action on the request. However, when the responsible NASA 
installation knows the foreign originator's view toward declassification 
or continued classification of the types of information requested, 
consultation with the foreign originator is not necessary.
    (d) Requests for mandatory review for declassification of foreign 
government information which NASA has not received or classified shall 
be referred to the Government agency having a primary interest. The 
requestor shall be advised of the referral.

[44 FR 34913, June 18, 1979, as amended at 48 FR 5893, Feb. 9, 1983]



 Subpart H--Delegation of Authority to Make Determinations in Original 
                         Classification Matters

    Source: 62 FR 54380, Oct. 20, 1997, unless otherwise noted.



Sec. 1203.800  Delegations.

    (a) The NASA officials listed in paragraph (b) (1) and (2) of this 
section are authorized to make, modify, or eliminate security 
classification assignments to information under their jurisdiction for 
which NASA has original classification authority. Such actions shall be 
in accordance with currently applicable criteria, guidelines, laws, and 
regulations, and they shall be subject to any contrary determination 
that has been made by the Senior Agency Official for Classified National 
Security Information, or by any other NASA official authorized to make 
such a determination. The Director, Security Management Office, is 
designated to act as the Senior Agency Official for Classified National 
Security Information. The NASA officials listed in paragraph (b)(3) of 
the section are authorized to declassify top Secret security 
classification assignments over 25 years old to information under their 
jurisdiction for which NASA has original classification authority. The 
NASA officials listed in paragraphs (b)(4) of this section are 
authorized to declassify Secret and Confidential security classification 
assignments to information under their jurisdiction for which NASA has 
original classification authority.
    (b) Designated officials--(1) TOP SECRET Classification Authority. 
(i) Administrator.
    (ii) Deputy Administrator.
    (iii) Associate Deputy Administrator.
    (iv) Associate Deputy Administrator (Technical).
    (v) Senior Agency Official for Classified National Security 
Information.
    (2) SECRET and CONFIDENTIAL Classification Authority. Officials 
listed in paragraph (b)(1) of this section.
    (3) Declassification Authority, Top Secret Assignments over 25 years 
Old. (i) Agency Security Program Manager, NASA Headquarters.
    (ii) Such other officials as may be delegated declassification 
authority, in

[[Page 27]]

writing, by the Senior Agency Official for Classified National Security 
Information.
    (4) Declassification Authority, Secret and Confidential. (i) 
Security Administrative Team Leader, Headquarters NASA.
    (ii) Such other officials as may be delegated declassification 
authority, in writing, by the Senior Agency Official for Classified 
National Security Information.
    (c) Written requests for original classification authority or 
declassification authority shall be forwarded to the Senior Agency 
Official for Classified National Security Information, with appropriate 
justification appended thereto.
    (d) The Senior Agency Official for Classified National Security 
Information shall maintain a list of all delegations of original 
classification of declassification authority by name or title of the 
position held.
    (e) The Senior Agency Official for Classified National Security 
Information shall conduct a periodic review of delegation lists to 
ensure that the officials so designated have demonstrated a continuing 
need to exercise such authority.
    (f) Original classification authority shall not be delegated to 
persons who only reproduce, extract, or summarize classified 
information, or who only apply classification markings derived from 
source material or as directed by a classification guide.



Sec. 1203.801  Redelegation.

    Redelegation of TOP SECRET, SECRET, or CONFIDENTIAL original 
classification authority or declassification authority is not 
authorized.



Sec. 1203.802  Reporting.

    The officials to whom original classification authority has been 
delegated under this section shall ensure that feedback is provided to 
the Senior Agency Official for National Security Information. The Senior 
Agency Official for National Security Information shall keep the 
Administrator currently informed of all significant actions, problems, 
or other matters of substance related to the exercise of the authority 
delegated hereunder.



         Subpart I--NASA Information Security Program Committee

    Source: 54 FR 6881, Feb. 15, 1989, unless otherwise noted.



Sec. 1203.900  Establishment.

    Pursuant to Executive Order 12958, ``National Security 
Information,'' and the National Aeronautics and Space Act of 1958, as 
amended, there is established a NASA Information Security Program 
Committee (hereinafter referred to as the Committee) as part of the 
permanent administrative structure of NASA. The Director, NASA Security 
Management Office, is designated to act as the Chairperson of the 
Committee. The Senior Security Specialist, NASA Security Management 
Office, is designated to act as the Committee Executive Secretary.

[64 FR 72535, Dec. 28, 1999]



Sec. 1203.901  Responsibilities.

    (a) The Chairperson reports to the Administrator concerning the 
management and direction of the NASA Information Security Program as 
provided for in subpart B of this part. In this connection, the 
Chairperson is supported and advised by the Committee.
    (b) The Committee shall act on all appeals from denials of 
declassification requests and on all suggestions and complaints with 
respect to administration of the NASA Information Security Program as 
provided for in subpart B of this part.
    (c) The Executive Secretary of the Committee shall maintain all 
records produced by the Committee, its subcommittees, and its ad hoc 
panels.
    (d) The NASA Security Office, NASA Headquarters, will provide staff 
assistance, and investigative and support services for the Committee.



Sec. 1203.902  Membership.

    The Committee will consist of the Chairperson and Executive 
Secretary. In addition, each of the following NASA officials will 
nominate one person to Committee membership:
    (a) Associate Administrator for:
    (1) Aero-Space Technology.
    (2) Space Science.
    (3) Space Flight.

[[Page 28]]

    (4) External Relations.
    (5) Life and Microgravity Sciences and Applications.
    (b) Associate Deputy Administrator.
    (c) General Counsel.
    Other members may be designated upon specific request of the 
Chairperson.

[54 FR 6881, Feb. 15, 1989, as amended by 64 FR 72535, Dec. 28, 1999]



Sec. 1203.903  Ad hoc committees.

    The Chairperson is authorized to establish such ad hoc panels or 
subcommittees as may be necessary in the conduct of the Committee's 
work.



Sec. 1203.904  Meetings.

    (a) Meetings will be held at the call of the Chairperson.
    (b) Records produced by the Committee and the minutes of each 
meeting will be maintained by the Executive Secretary.



PART 1203a--NASA SECURITY AREAS--Table of Contents




Sec.
1203a.100 Purpose and scope.
1203a.101 Definitions.
1203a.102 Establishment, maintenance, and revocation of security areas.
1203a.103 Access to security areas.
1203a.104 Violation of security areas.
1203a.105 Implementation by field and component installations.

    Authority: 18 U.S.C. 799.

    Source: 38 FR 8056, Mar. 28, 1973, unless otherwise noted.



Sec. 1203a.100  Purpose and scope.

    (a) To insure the uninterrupted and successful accomplishment of the 
NASA mission, certain designated security areas may be established and 
maintained by NASA installations and component installations in order to 
provide appropriate and adequate protection for facilities, property, or 
classified information and material in the possession or custody of NASA 
or NASA contractors located at NASA installations and component 
installations.
    (b) This part 1203a sets forth:
    (1) The designation and maintenance of security areas,
    (2) The responsibilities and procedures in connection therewith, and
    (3) The penalties that may be enforced through court actions against 
unauthorized persons entering security areas.



Sec. 1203a.101  Definitions.

    For the purpose of this part, the following definitions apply:
    (a) Security area. A physically defined area, established for the 
protection or security of facilities, property, or classfied information 
and material in the possession or custody of NASA or a NASA contractor 
located at a NASA installation or component installation, entry to which 
is subject to security measures, procedures, or controls. Security areas 
which may be established are:
    (1) Restricted area. An area wherein security measures are applied 
primarily for the safeguarding or the administrative control of property 
or to protect operations and functions which are vital or essential to 
the accomplishment of the mission assigned to a NASA installation or 
component installation.
    (2) Limited area. An area wherein security measures are applied 
primarily for the safeguarding of classified information and material or 
unclassified property warranting special protection and in which the 
uncontrolled movement of visitors would permit access to such classified 
information and material or property, but within which area such access 
may be prevented by appropriate visitor escort and other internal 
restrictions and controls.
    (3) Closed area. An area wherein security measures are applied 
primarily for the purpose of safeguarding classified information and 
material; entry to the area being equivalent, for all practical 
purposes, to access to such classified information and material.
    (b) Temporary security area. A designated interim security area, the 
need for which will not exceed 30 days from date of establishment. A 
temporary security area may also be established on an interim basis, 
pending approval of its establishment as a permanent security area.
    (c) Permanent security area. A designated security area, the need 
for

[[Page 29]]

which will exceed 30 days from date of establishment.



Sec. 1203a.102  Establishment, maintenance, and revocation of security areas.

    (a) Establishment. (1) Directors of NASA field and component 
installations, and the Director of Headquarters Administration for NASA 
Headquarters (including component installations) may establish, 
maintain, and protect such areas as restricted, limited, or closed 
depending upon the opportunity available to unauthorized persons either 
to:
    (i) Obtain knowledge of classified information,
    (ii) Damage or remove property, or to
    (iii) Disrupt Government operations.
    (2) The concurrence of the Director of Security NASA Headquarters, 
will be obtained prior to the establishment of a permanent security 
area.
    (3)(i) As a minimum, the following information will be submitted to 
the Director of Security 15 workdays prior to establishment of each 
permanent security area:
    (a) The name and specific location of the NASA field or component 
installation, facility, or property to be protected.
    (b) A statement that the property is owned by, or leased to, the 
United States for use by NASA or is the property of a NASA contractor 
located on a NASA installation or component installation.
    (c) Designation desired: i.e., restricted, limited, or closed.
    (d) Specific purpose(s) for the establishment of a security area.
    (ii) For those areas currently designated by the installation as 
``permanent security areas,'' the information set forth in paragraph 
(d)(3)(i) of this section will be furnished to the Security Division, 
NASA Headquarters, within 30 workdays of the effective date of this 
part.
    (b) Maintenance. The security measures which may be utilized to 
protect such areas will be determined by the requirements of individual 
situations. As a minimum such security measures will:
    (1) Provide for the posting of signs at entrances and at such 
intervals along the perimeter of the designated area as to provide 
reasonable notice to persons about to enter thereon. The Director of 
Security, NASA Headquarters, upon request, may approve the use of signs 
that are now being used pursuant to a State statute.
    (2) Regulate authorized personnel entry and movement within the 
area.
    (3) Deny entry of unauthorized persons or property.
    (4) Prevent unauthorized removal of classified information and 
material or property from a NASA installation or component installation.
    (c) Revocation. Once the need for an established permanent security 
area no longer exists, the area will be returned immediately to normal 
controls and procedures or as soon as practicable. The Director of 
Security will be informed of permanent security area revocations within 
15 workdays.



Sec. 1203a.103  Access to security areas.

    (a) Only those NASA employees, NASA contractor employees, and 
visitors who have a need for such access and who meet the following 
criteria may enter a security area:
    (1) Restricted area. Be authorized to enter the area alone or be 
escorted by or under the supervision of a NASA employee or NASA 
contractor employee who is authorized to enter the area.
    (2) Limited area. Possess a security clearance equal to the level of 
the classified information or material involved or be the recipient of a 
satisfactorily completed national agency check if classified material or 
information is not involved. Personnel who do not meet the requirements 
for unescorted access may be escorted by a NASA employee or NASA 
contractor employee who meets the access requirements and has been 
authorized to enter the area.
    (3) Closed area. Possess a security clearance equal to the 
classified information or material involved.
    (b) The directors of NASA field and component installations, and the 
Director of Headquarters Administration for NASA Headquarters (including 
component installations) may rescind previously granted authorizations 
to enter a security area when an individual's continued presence therein 
is no

[[Page 30]]

longer required, threatens the security of the property therein, or is 
disruptive of Government operations.



Sec. 1203a.104  Violation of security areas.

    (a) Removal of unauthorized persons. The directors of NASA field and 
component installations (or their designees) and the Director of 
Headquarters Administration for NASA Headquarters (including component 
installations) or his designee may order the removal or eviction of any 
person whose presence in a designated security area is in violation of 
the provisions of this part or any regulation or order established 
pursuant to the provisions of this part.
    (b) Criminal penalties for violation. Whoever willfully violates, 
attempts to violate, or conspires to violate any regulation or order 
establishing requirements or procedures for authorized entry into an 
area designated restricted, limited, or closed pursuant to the 
provisions of this part may be subject to prosecution under 18 U.S.C. 
799 which provides penalties for a fine of not more than $5,000 or 
imprisonment for not more than 1 year, or both.



Sec. 1203a.105  Implementation by field and component installations.

    If a Director of a NASA field or component installation finds it 
necessary to issue supplemental instructions to any provision of this 
part, the instructions must first be published in the Federal Register. 
Therefore, the proposed supplemental instructions will be sent to the 
Security Division (Code DHZ), NASA Headquarters, in accordance with NASA 
Management Instruction 1410.10 for processing.



PART 1203b--SECURITY PROGRAMS; ARREST AUTHORITY AND USE OF FORCE BY NASA SECURITY FORCE PERSONNEL--Table of Contents




Sec.
1203b.100 Purpose.
1203b.101 Scope.
1203b.102 Definitions.
1203b.103 Arrest authority.
1203b.104 Exercise of arrest authority--general guidelines.
1203b.105 Use of non-deadly physical force when making an arrest.
1203b.106 Use of deadly force.
1203b.107 Use of firearms.
1203b.108 Management oversight.
1203b.109 Disclaimer.

    Authority: Sec. 304(f) of the National Aeronautics and Space Act of 
1958 (42 U.S.C. 2456a).

    Source: 57 FR 4926, Feb. 11, 1992, unless otherwise noted.



Sec. 1203b.100  Purpose.

    This regulation implements section 304(f) of the National 
Aeronautics and Space Act of 1958, as amended (42 U.S.C. 2456a), by 
establishing guidelines for the exercise of arrest authority and for the 
exercise of physical force, including deadly force, in conjunction with 
such arrest authority.



Sec. 1203b.101  Scope.

    This part applies to only those NASA and NASA contractor security 
force personnel who are authorized to exercise arrest authority in 
accordance with 42 U.S.C. 2456a and this regulation.



Sec. 1203b.102  Definitions.

    Accredited Course of Training. A course of instruction offered by 
the Federal Law Enforcement Training Center, or an equivalent course of 
instruction offered by another Federal agency. See Sec. 
1203b.103(a)(1).
    Arrest. An act, resulting in the restriction of a person's movement, 
other than a brief detention for purposes of questioning about a 
person's identity and requesting identification, accomplished by means 
of force or show of authority under circumstances that would lead a 
reasonable person to believe that he/she was not free to leave the 
presence of the officer.
    Contractor. NASA contractors and subcontractors at all tiers.



Sec. 1203b.103  Arrest authority.

    (a) NASA security force personnel may exercise arrest authority, 
provided that:
    (1) They graduate from an accredited training course (see Sec. 
1203b.102(a)); and
    (2) They have been certified in writing by the Associate 
Administrator for Management Systems and Facilities, or designee, as 
specifically authorized to exercise arrest authority.

[[Page 31]]

    (b) The authority of NASA security force personnel to make a 
warrantless arrest is subject to the following conditions:
    (1) The arresting officer must be guarding and protecting property 
owned or leased by, or under the control of, the United States under the 
administration and control of NASA or one of its contractors or 
subcontractors, at facilities owned by or contracted to NASA; and
    (2) The person to be arrested has committed in the arresting 
officer's presence any offense against the United States; or
    (3) The arresting officer has reasonable grounds to believe that the 
person to be arrested has committed or is committing any felony 
cognizable under the laws of the United States.
    (c) The Office of the General Counsel, NASA Headquarters, or the 
Installation Chief Counsel's Office, as appropriate, shall provide 
guidance as to the applicability of these regulations.



Sec. 1203b.104  Exercise of arrest authority--general guidelines.

    (a) In making an arrest, the security force officer should announce 
his/her authority and that the person is under arrest prior to taking 
the person into custody. If the circumstances are such that making such 
announcements would be useless or dangerous to the security force 
officer or others, the security force officer may dispense with these 
announcements.
    (b) The security force officer at the time and place of arrest may 
search the arrested person and the area immediately surrounding the 
arrested person for weapons and criminal evidence. This is to protect 
the arresting officer and to prevent the destruction of evidence.
    (c) After the arrest is effected, the arrested person shall be 
advised of his/her constitutional right against self-incrimination. If 
the circumstances are such that making such advisement is dangerous to 
the officer or others, this requirement may be postponed until the 
immediate danger has passed. However, no interrogation of the individual 
may occur until he/she has been properly advised of his/her right 
against self-incrimination.
    (d) Custody of the person arrested should be transferred to other 
Federal law enforcement personnel (e.g., United States Marshals or FBI 
agents) or to local law enforcement agency personnel, as appropriate, as 
soon as possible, in order to ensure that the person is brought before a 
magistrate without unnecessary delay.



Sec. 1203b.105  Use of non-deadly physical force when making an arrest.

    When a security force officer has the right to make an arrest, as 
discussed in Sec. 1203b.103, the officer may use only that non-deadly 
physical force which is reasonable and necessary to apprehend and arrest 
the offender; to prevent the escape of the offender; or to defend 
himself/herself or a third person from what the security force officer 
reasonably believes to be the use or threat of imminent use of non-
deadly physical force by the offender. Verbal abuse alone by the 
offender cannot be the basis under any circumstances for use of non-
deadly physical force by a security force officer.



Sec. 1203b.106  Use of deadly force.

    Deadly force shall be used only in those circumstances where the 
security force officer reasonably believes that either he/she or another 
person is in imminent danger of death or serious bodily harm.



Sec. 1203b.107  Use of firearms.

    (a) If it becomes necessary to use a firearm in any of the 
circumstances described in Sec. 1203b.106, NASA security force 
personnel shall comply with the following precautions whenever possible:
    (1) Give an order to halt before firing.
    (2) Do not fire if shots are likely to harm innocent bystanders.
    (3) Shoot to stop.
    (b) Warning shots are not authorized.
    (c) In the event that a security force officer discharges a weapon 
while in a duty status:
    (1) The incident shall be reported to the Installation Chief of 
Security who, in turn, will report it to the NASA Security Office as 
expeditiously as possible, with as many details supplied as are 
available.

[[Page 32]]

    (2) The officer shall be promptly suspended from duty with pay or 
reassigned to other duties not involving the use of a firearm, as the 
Installation Director or the Associate Administrator for Management 
Systems and Facilities deems appropriate, pending investigation of the 
incident.
    (3) The cognizant Installation Director, or for incidents occurring 
at NASA Headquarters, the Associate Administrator for Management Systems 
and Facilities, shall appoint an investigating officer to conduct a 
thorough investigation of the incident. Additional personnel may also be 
appointed, as needed to assist the investigating officer. Upon 
conclusion of the investigation, the investigating officer shall submit 
a written report of findings and recommendations to the appropriate 
Installation Director or the Associate Administrator for Management 
Systems and Facilities.
    (4) Upon conclusion of the investigation, the Installation Director 
or the Associate Administrator for Management Systems and Facilities, 
with the advice of Counsel, shall determine the disposition appropriate 
to the case.
    (d) Firearms will be periodically inspected and kept in good working 
order by a qualified gunsmith. Ammunition, holsters, and related 
equipment will be periodically inspected for deterioration and kept in 
good working order. Firearms and ammunition will be securely stored 
separately in locked containers. Firearms will not be stored in a loaded 
condition. Neither firearms nor ammunition will be stored in the same 
containers as money, drugs, precious materials, or classified 
information. NASA Headquarters and each Installation shall adopt 
procedures for the maintenance of records with respect to the issuance 
of firearms and ammunition.

[57 FR 4926, Feb. 11, 1992, as amended at 58 FR 5263, Jan. 21, 1993]



Sec. 1203b.108  Management oversight.

    (a) The Administrator shall establish a committee to exercise 
management oversight over the implementation of arrest authority.
    (b) The Administrator shall establish a reporting requirement for 
Headquarters and Field Installations.
    (c) The Associate Administrator for Management Systems and 
Facilities, or designee, will ensure that all persons who are authorized 
to exercise arrest authority will, before performing these duties:
    (1) Receive instructions on regulations regarding the use of force, 
including deadly force; and
    (2) Demonstrate knowledge and skill in the use of unarmed defense 
techniques and their assigned firearms.
    (d) The Associate Administrator for Management Systems and 
Facilities, or designee, will also:
    (1) Provide periodic refresher training to ensure continued 
proficiency and updated knowledge as to the use of unarmed defense 
techniques;
    (2) Require security force officers exercising arrest authority to 
requalify semiannually with their assigned firearms; and
    (3) Require periodic refresher training to ensure continued 
familiarity with regulations.
    (e) The Associate Administrator for Management Systems and 
Facilities and Installation Directors shall issue local management 
instructions, subject to prior NASA Headquarters approval, which will 
supplement this regulation for Headquarters/Installation-specific 
concerns.

[57 FR 4926, Feb. 11, 1992, as amended at 58 FR 5263, Jan. 21, 1993]



Sec. 1203b.109  Disclaimer.

    These regulations are set forth solely for the purpose of internal 
National Aeronautics and Space Administration guidance. They are not 
intended to, do not, and may not be relied upon to create any rights, 
substantive or procedural, enforceable at law by any party in any 
matter, civil or criminal, and they do not place any limitations on 
otherwise lawful activities of security force personnel or the National 
Aeronautics and Space Administration.



PART 1204--ADMINISTRATIVE AUTHORITY AND POLICY--Table of Contents




Subparts 1-3 [Reserved]

[[Page 33]]

                    Subpart 4--Small Business Policy

Sec.
1204.400 Scope of subpart.
1204.401 Policy.
1204.402 Responsibilities.
1204.403 General requirements.

                 Subpart 5--Delegations and Designations

1204.500 Scope of subpart.
1204.501 Delegation of authority--to take actions in real estate and 
          related matters.
1204.502 [Reserved]
1204.503 Delegation of authority to grant easements.
1204.504 Delegation of authority to grant leaseholds, permits, and 
          licenses in real property.
1204.505 Delegation of authority to execute certificates of full faith 
          and credit.
1204.506 Delegation of authority to license the use of the Centennial of 
          Flight Commission name.
1204.507 [Reserved]
1204.508 Delegation of authority of certain civil rights functions to 
          Department of Health, Education, and Welfare.
1204.509 Delegation of authority to take action regarding ``liquidated 
          damage'' assessments under the Contract Work Hours and Safety 
          Standards Act, and associated labor statutes.

Subparts 6-9 [Reserved]

     Subpart 10--Inspection of Persons and Personal Effects at NASA 
Installations or on NASA Property; Trespass or Unauthorized Introduction 
                    of Weapons or Dangerous Materials

1204.1000 Scope of subpart.
1204.1001 Policy.
1204.1002 Responsibility.
1204.1003 Procedures.
1204.1004 Trespass.
1204.1005 Unauthorized introduction of firearms or weapons, explosives, 
          or other dangerous materials.
1204.1006 Violations.

Subparts 11-13 [Reserved]

Subpart 14--Use of NASA Airfield Facilities by Aircraft Not Operated for 
                  the Benefit of the Federal Government

1204.1400 Scope.
1204.1401 Definitions.
1204.1402 Policy.
1204.1403 Available airport facilities.
1204.1404 Requests for use of NASA airfield facilities.
1204.1405 Approving authority.
1204.1406 Procedures in the event of a declared in-flight emergency.
1204.1407 Procedure in the event of an unauthorized use.

 Subpart 15--Intergovernmental Review of National Aeronautics and Space 
                 Administration Programs and Activities

1204.1501 Purpose.
1204.1502 Definitions.
1204.1503 Programs and activities subject to these regulations.
1204.1504 [Reserved]
1204.1505 Federal interagency coordination.
1204.1506 Procedures for selecting programs and activities under these 
          regulations.
1204.1507 Communicating with State and local officials concerning the 
          Agency's programs and activities.
1204.1508 Time limitations for receiving comments on proposed direct 
          Federal development.
1204.1509 Receiving and responding to comments.
1204.1510 Efforts to accommodate intergovernmental concerns.
1204.1511 Coordination in interstate situations.
1204.1512 [Reserved]
1204.1513 Waivers of provisions of these regulations.

 Subpart 16--Temporary Duty Travel--Issuance of Motor Vehicle for Home-
                         to-Work Transportation

1204.1600 Issuance of motor vehicle for home-to-work.

Appendix A to Part 1204--Items to Cover in Memordanda of Agreement

Subparts 1-3 [Reserved]



                    Subpart 4--Small Business Policy

    Authority: 42 U.S.C. 2473(c)(5); 42 U.S.C. 2473b; Public Law 101-
507, the VA/HUD/Indep. Agencies Appropriation Act for FY 1991, at 104 
Stat. 1380 (Nov. 5, 1990); and 15 U.S.C. 631-650.

    Source: 58 FR 43554, Aug. 17, 1993, unless otherwise noted.



Sec. 1204.400  Scope of subpart.

    This subpart establishes NASA's small business policy and outlines 
the delegation of authority in implementing this policy as required by 
Federal law.

[[Page 34]]



Sec. 1204.401  Policy.

    (a) It is the policy of NASA to enable small business concerns 
(including small women-owned businesses), Historically Black Colleges 
and Universities, and other minority educational institutions the 
opportunity to participate equitably and proportionately in its total 
purchases and contracts consistent with NASA's needs to execute its 
missions.
    (b) In carrying out the NASA procurement program, the primary 
consideration shall be that of securing contract performance, including 
obtaining deliveries of required items or services at the time, in the 
quantity and of the quality prescribed. In the area of research and 
development contracts, the general policy of NASA is to award such 
contracts to those organizations determined by responsible personnel to 
have a high degree of competence in the specific branch of science or 
technology required for the successful conduct of the work. It is in the 
interest of the civilian space program that the number of firms engaged 
in research and development work for NASA be expanded and that there be 
an increase in the extent of participation in such work by competent 
small and small disadvantaged business firms.



Sec. 1204.402  Responsibilities.

    (a) Office of Small and Disadvantaged Business Utilization (OSDBU). 
The Associate Administrator for Small and Disadvantaged Business 
Utilization, NASA Headquarters, is responsible for the development, 
supervision, and coordination of the NASA Small Business Program. The 
Associate Administrator is also responsible for formulating policy and 
procedures relating to small business, and representing NASA before 
other Government agencies on matters primarily affecting small business.
    (b) NASA Headquarters and Field Installations. The Directors of 
Field Installations and the Associate Administrator for Procurement at 
Headquarters will designate a qualified individual as a ``Small Business 
Specialist'' to provide a central point of contact to which small and 
small disadvantaged business concerns may direct inquiries concerning 
participation in the NASA procurement program, or secure assistance in 
submitting bids or proposals and performance of contracts. Where the 
Director of the Field Installation considers that the volume of 
procurement at the Installation does not warrant a full-time Small 
Business Specialist, the Director may assign such duties to qualified 
procurement personnel on a part-time basis. NASA Field Installations 
shall establish and maintain liaison with the Small Business 
Administration (SBA) Procurement Center Representative (PCR) or the 
appropriate Small Business Administration Regional Office in matters 
relating to Field Installation procurement activities. A Small Business 
Technical Advisor shall be assigned to each contracting activity within 
the agency to which the SBA has assigned a PCR.



Sec. 1204.403  General requirements.

    (a) All proposed procurement transactions in excess of $25,000 shall 
be examined by a Small Business Specialist prior to issuance of bids or 
requests for proposals to determine suitability for small participation 
or set-asides, unless the transaction has already been set-aside for 
small business by the contracting officer.
    (b) The appropriate office of the Small Business Administration 
(assigned PCR) shall be informed of proposed procurements estimated to 
exceed $25,000.
    (c) A Bidder's list shall be maintained at each Field Installation 
on a current basis and reviewed to ensure that small business firms are 
given an equitable opportunity to participate in those procurements 
suitable for performance by such firms. Installations may use, at their 
option, the SBA Procurement Automated Source System (PASS) in lieu of 
the separate Center Bidder's list, if resources can be conserved.
    (d) NASA Small Business Specialists shall acquire descriptive data, 
brochures, or other information concerning small business firms that 
appear competent to perform research and development (R&D) work in 
fields in which NASA is interested and furnish such information to 
appropriate NASA personnel for consideration of

[[Page 35]]

these firms in future R&D procurements. The Small Business Specialists 
at Headquarters and Field Installations shall assist and consult, as 
necessary, with NASA technical personnel in analyzing such information, 
arranging field inspection of facilities, making appointments for 
technical personnel with representatives of small business firms, and 
obtaining from other agencies appraisals of work performance by such 
firms. When feasible, Small Business Specialists shall conduct or 
participate in outreach conferences and training sessions to inform 
small businesses of contracting opportunities with the Agency.
    (e) In accordance with Public Law 95-507, NASA will require 
contractors having contracts in excess of $1 million for the 
construction of any public facility, and in excess of $500,000 for all 
other contracts, and of such nature as to afford opportunities for 
subcontracting in substantial amounts, to establish and conduct small 
business subcontracting programs. Such programs will be periodically 
reviewed by NASA Small Business Specialists to evaluate their adequacy.
    (f) NASA will encourage competent small business concerns to submit 
unsolicited proposals for research and development work in areas within 
NASA's responsibility, which may lead to contracts for such work. The 
formation of contractor pools or joint ventures to perform research and 
development work will also be encouraged.
    (g) NASA Small Business Specialists will disseminate to small 
business concerns information concerning inventions for which NASA holds 
patents on behalf of the United States and under which it is NASA policy 
to grant licenses.
    (h) Small business participation in NASA procurement shall be 
accurately measured, recorded, and publicized.
    (i) NASA small business personnel shall assist small business 
concerns to obtain payments under their contracts, late payment interest 
penalties, or information due to such concerns.



                 Subpart 5--Delegations and Designations

    Authority: 42 U.S.C. 2473; 36 U.S.C. 143.



Sec. 1204.500  Scope of subpart.

    This subpart establishes various delegations of authority to, and 
designations of, National Aeronautics and Space Administration officials 
and other Government officials acting on behalf of the agency to carry 
out prescribed functions of the National Aeronautics and Space 
Administration.

[30 FR 3378, Mar. 13, 1965]



Sec. 1204.501  Delegation of authority--to take actions in real estate and related matters.

    (a) Delegation of authority. The Associate Administrator for 
Management Systems and Facilities and the Director, Facilities 
Engineering Division, are delegated authority, in accordance with 
applicable laws and regulations, and subject to conditions imposed by 
immediate superiors, to:
    (1) Prescribe agency real estate policies, procedures, and 
regulations;
    (2) Enter into and take other actions including, but not limited to, 
the following;
    (i) Acquire (by purchase, lease, condemnation, or otherwise) fee and 
lesser interests in real property and, in the case of acquisition by 
condemnation, to sign declarations of taking.
    (ii) Use, with their consent, the facilities of Federal and other 
agencies with or without reimbursement.
    (iii) Determine entitlement to and quantum of, financial 
compensation under, and otherwise exercise the authority contained in 
the Uniform Relocation Assistance and Real Property Acquisition Policies 
Act of 1970, as amended (42 U.S.C. 4601), and regulations in 
implementation thereof.
    (iv) Grant easements, leaseholds, licenses, permits, or other 
interests (wherever located) controlled by NASA.
    (v) Grant the use of NASA-controlled real property and approve the 
acquisition and use of nongovernment owned real property for any NASA-
related,

[[Page 36]]

nonappropriated fund activity purpose with the concurrence of the NASA 
Comptroller.
    (vi) Sell and otherwise dispose of real property in accordance with 
the provisions of the Federal Property and Administrative Services Act 
of 1949, as amended (40 U.S.C. 471, et seq).
    (vii) Exercise control over the acquisition, utilization, and 
disposal of movable/relocatable structures including prefabricated 
buildings, commercial packaged accommodations, trailers, and other like 
items used as facility substitutes.
    (viii) Request other government agencies to act as real estate agent 
for NASA.
    (ix) Authorize other NASA officials to take specific implementing 
action with regard to any real property transaction included in the 
scope of authority delegated in paragraph (a)(2) of this section.
    (b) Redelegation. (1) The authority delegated in paragraph (a)(1) of 
this section may not be redelegated.
    (2) The authority delegated in paragraph (a)(2) of this section may 
be redelegated with power of further redelegation.
    (c) Reporting. The officials to whom authority is delegated in this 
section shall ensure that feedback is provided to keep the Administrator 
fully and currently informed of significant actions, problems, or other 
matters of substance related to the exercise of the authority delegated 
hereunder.

[51 FR 26862, July 28, 1986, as amended at 56 FR 57592, Nov. 13, 1991]



Sec. 1204.502  [Reserved]



Sec. 1204.503  Delegation of authority to grant easements.

    (a) Scope. 40 U.S.C. 319 to 319C authorizes executive agencies to 
grant, under certain conditions, the easements as the head of the agency 
determines will not be adverse to the interests of the United States and 
subject to the provisions as the head of the agency deems necessary to 
protect the interests of the United States.
    (b) Delegation of authority. The Associate Administrator for 
Management Systems and Facilities and the Director, Facilities 
Engineering Division, are delegated authority to take actions in 
connection with the granting of easements.
    (c) Definitions. The following definitions will apply:
    (1) State means the States of the Union, the District of Columbia, 
the Commonwealth of Puerto Rico, and the possessions of the United 
States.
    (2) Person includes any corporation, partnership, firm, association, 
trust, estate, or other entity.
    (d) Determination. It is hereby determined that grants of easements 
made in accordance with the provisions of this section will not be 
adverse to the interests of the United States.
    (e) Redelegation. (1) The Directors of Field Installations with 
respect to real property under their supervision and management may, 
subject to the restrictions in paragraph (f) of this section, exercise 
the authority of the National Aeronautics and Space Act of 1958, as 
amended, and 40 U.S.C. 319 to 319C to authorize or grant easements in, 
over, or upon real property of the United States controlled by NASA as 
will not be adverse to the interests of the United States.
    (2) The Directors of Field Installations may redelegate this 
authority to only two senior management officials of the appropriate 
field installation.
    (f) Restrictions. Except as otherwise specifically provided, no such 
easement shall be authorized or granted under the authority stated in 
paragraph (e) of this section unless:
    (1) The appropriate Director of the Field Installation determines:
    (i) That the interest in real property to be conveyed is not 
required for a NASA program.
    (ii) That the grantee's exercise of rights under the easement will 
not interfere with NASA operations.
    (2) Monetary or other benefit, including any interest in real 
property, is received by the government as consideration for the 
granting of the easement.
    (3) The instrument granting the easement provides:
    (i) For the termination of the easement, in whole or in part, and 
without cost to the government, if there has been:
    (A) A failure to comply with any term or condition of the grant;

[[Page 37]]

    (B) A nonuse of the easement for a consecutive 2-year period for the 
purpose for which granted; or
    (C) An abandonment of the easement; or
    (D) A determination by the Associate Administrator for Management 
Systems and Facilities, the Director, Facilities Engineering Division, 
or the appropriate Director of the Field Installation that the interests 
of the national space program, the national defense, or the public 
welfare require the termination of the easement; and a 30-day notice, in 
writing, to the grantee that the determination has been made.
    (ii) That written notice of the termination shall be given to the 
grantee, or its successors or assigns, by the Associate Administrator 
for Management Systems and Facilities, the Director, Facilities 
Engineering Division, or the appropriate Director of the Field 
Installation, and that termination shall be effective as of the date of 
the notice.
    (iii) For any other reservations, exceptions, limitations, benefits, 
burdens, terms, or conditions necessary to protect the interests of the 
United States.
    (g) Waivers. If, in connection with a proposed granting of an 
easement, the Director of a Field Installation determines that a waiver 
from any of the restrictions in paragraph (f) of this section is 
appropriate, authority for the waiver may be requested from the 
Associate Administrator for Management Systems and Facilities or the 
Director, Facilities Engineering Division.
    (h) Services of the Corps of Engineers. In exercising the authority 
herein granted, the Directors of Field Installations, under the 
applicable provisions of any cooperative agreement between NASA and the 
Corps of Engineers (in effect at that time), may:
    (1) Utilize the services of the Corps of Engineers, U.S. Army.
    (2) Delegate authority to the Corps of Engineers to execute, on 
behalf of NASA, grants of easements in real property, as authorized in 
this section, provided that the conditions set forth in paragraphs (f) 
and (g) of this section are complied with.
    (i) Distribution of documents. One copy of each document granting an 
easement interest under this authority, including instruments executed 
by the Corps of Engineers, will be forwarded for filing in the Central 
Depository for Real Property Documents to: National Aeronautics and 
Space Administration, Facilities Operations and Maintenance Branch (Code 
JXG), Facilities Engineering Division, Washington, DC 20546.

[51 FR 26860, July 28, 1986, as amended at 56 FR 57592, Nov. 13, 1991]



Sec. 1204.504  Delegation of authority to grant leaseholds, permits, and licenses in real property.

    (a) Delegation of authority. The National Aeronautics and Space Act 
of 1958, as amended, authorizes NASA to grant leaseholds, permits, and 
licenses in real property. This authority is delegated to the Associate 
Administrator for Management Systems and Facilities and the Director, 
Facilities Engineering Division.
    (b) Definition. Real Property means land, buildings, other 
structures and improvements, appurtenances, and fixtures located 
thereon.
    (c) Determination. It is hereby determined that grants of 
leaseholds, permits, or licenses made in accordance with the provisions 
of this section will not be adverse to the interests of the United 
States.
    (d) Redelegation. (1) The Directors of Field Installations with 
respect to real property under their supervision and management may, 
subject to the restrictions in paragraph (e) of this section, grant a 
leasehold, permit, or license to any person or organization, including 
other Government agencies, a State, or political subdivision or agency 
thereof. This authority may not be exercised with respect to real 
property which is (i) excess within the meaning of 40 U.S.C. 472(e), or 
(ii) proposed for use by a NASA exchange and subject to the provisions 
of NASA Management Instruction 9050.6, NASA Exchange Activities.
    (2) The Directors of Field Installations may redelegate this 
authority to only two senior management officials of the Field 
Installation concerned.
    (e) Restrictions. Except as otherwise specifically provided, no 
leasehold, permit, or license shall be granted under

[[Page 38]]

the authority stated in paragraph (d) of this section unless:
    (1) The Director of the Field Installation concerned determines:
    (i) That the interest to be granted is not required for a NASA 
program.
    (ii) That the grantee's exercise of rights granted will not 
interfere with NASA operations.
    (2) Fair value in money is received by NASA on behalf of the 
Government as consideration.
    (3) The instrument provides:
    (i) For a term not to exceed 5 years.
    (ii) For the termination thereof, in whole or in part, and without 
cost to the Government if there has been:
    (A) A failure to comply with any term or condition of the grant; or
    (B) A determination by the Associate Administrator for Management 
Systems and Facilities, the Director, Facilities Engineering Division, 
or the Director of the Field Installation concerned that the interests 
of the national space program, the national defense, or the public 
welfare require the termination of the interest granted; and a 30-day 
notice, in writing, to the grantee that such determination has been 
made.
    (iii) That written notice of termination shall be given to the 
grantee, or its successors or assigns, by the Associate Administrator 
for Management Systems and Facilities, the Director, Facilities 
Engineering Division, or the Director of the Field Installation 
concerned, and that termination shall be effective as of the date 
specified by such notice.
    (iv) For any other reservations, exceptions, limitations, benefits, 
burdens, terms, or conditions necessary to protect the interests of the 
United States.
    (f) Waivers. If, in connection with a proposed grant, the Director 
of a Field Installation determines that a waiver from any of the 
restrictions set forth in paragraph (e) of this section is appropriate, 
a request may be submitted to the Associate Administrator for Management 
Systems and Facilities or the Director, Facilities Engineering Division.
    (g) Services of the Corps of Engineers. In exercising the authority 
herein granted, the Directors of Field Installations, pursuant to the 
applicable provisions of any cooperative agreement between NASA and the 
Corps of Engineers (in effect at the time), may:
    (1) Utilize the services of the Corps of Engineers, U.S. Army.
    (2) Delegate authority to the Corps of Engineers to execute, on 
behalf of NASA, any grants of interests in real property as authorized 
in this section provided that the conditions set forth in paragraphs (e) 
and (f) of this section are complied with.
    (h) Distribution of Documents. One copy of each document granting an 
interest in real property, including instruments executed by the Corps 
of Engineers, will be forwarded for filing in the Central Depository for 
Real Property Documents to: National Aeronautics and Space 
Administrator, Facilities Operations and Maintenance Branch (Code JXG), 
Facilities Engineering Division, Washington, DC 20546.

[51 FR 27528, Aug. 1, 1986, as amended at 56 FR 57592, Nov. 13, 1991]



Sec. 1204.505  Delegation of authority to execute certificates of full faith and credit.

    (a) Scope. This section designates NASA officials authorized to 
certify NASA documents to be submitted in evidence in Federal Courts.
    (b) Delegation of authority. The following NASA Headquarters 
officials are delegated authority to execute certificates of full faith 
and credit (Office of the Administrator section of NASA Form 955) 
certifying the signatures and authority of employees of the National 
Aeronautics and Space Administration, whenever such certification is 
required to authenticate copies of official records for possible 
admission in evidence in judicial proceedings pursuant to 28 U.S.C. 1733 
or any other statute:
    (1) General Counsel;
    (2) Deputy General Counsel;
    (3) [Reserved]
    (4) Assistant General Counsels.

[29 FR 6319, May 14, 1964, as amended at 39 FR 25229, July 9, 1974; 43 
FR 34122, Aug. 3, 1978]

[[Page 39]]



Sec. 1204.506  Delegation of authority to license the use of the Centennial of Flight Commission name.

    (a) Delegation of authority. The Assistant Administrator for Public 
Affairs is delegated the authority of section 9 of the Centennial of 
Flight Commemoration Act, as amended (Pub. L. 105-389) to license the 
use of the Centennial of Flight Commission name on any logo, emblem, 
seal, or descriptive or designating mark adopted for use by the 
Administrator in commemorating the centennial of powered flight.
    (b) Redelegation. The authority delegated in paragraph (a) of this 
section may not be redelegated.

[67 FR 47257, July 18, 2002]



Sec. 1204.507  [Reserved]



Sec. 1204.508  Delegation of authority of certain civil rights functions to Department of Health, Education, and Welfare.

    (a) Pursuant to the authority of Sec. 1250.111(c) of this chapter, 
the following responsibilities of the National Aeronautics and Space 
Administration and of the responsible NASA official under Title VI, 
Civil Rights Act of 1964 (78 Stat. 252) (42 U.S.C. 2000d), with respect 
to institutions of higher education were delegated by the Administrator, 
NASA, to the Secretary, Department of Health, Education, and Welfare, on 
March 15, 1966:
    (1) Responsibilities with respect to compliance reports, including 
receiving and evaluation thereof under Sec. 1250.105(b) of this 
chapter, and other actions under Sec. 1250.105 of this chapter.
    (2) All actions under Sec. 1250.106 of this chapter, including 
periodic compliance reviews, receiving of complaints, investigations, 
determination of recipient's apparent failure to comply, and resolution 
of matters by informal means.
    (b) NASA specifically has reserved to itself the responsibilities 
for effectuation of compliance under Sec. Sec. 1250.107, 1250.108, and 
1250.109 of this chapter.
    (c) The responsibilities so delegated were and are to be exercised 
in accordance with the ``Plan for Coordinated Enforcement Procedures for 
Higher Education'' (dated February 1966), developed by interested 
Government agencies and approved by the Department of Justice; and 
redelegation by the Secretary to other officials of the Department of 
Health, Education, and Welfare was authorized.
    (d) NASA has retained the right to exercise these responsibilities 
itself in special cases with the agreement of the appropriate official 
in the Department of Health, Education, and Welfare. The Office of 
Grants and Research Contracts, NASA Headquarters, has been designated to 
represent NASA in carrying out the provisions of this delegation.

[32 FR 3883, Mar. 9, 1967]



Sec. 1204.509  Delegation of authority to take action regarding ``liquidated damage'' assessments under the Contract Work Hours and Safety Standards Act, and 
          associated labor statutes.

    (a) Delegation of authority. The Director, Industrial Relations 
Office, is hereby delegated the authority to act for the Administrator 
in all matters where the ``Agency Head'' is authorized to act under 29 
CFR part 5, labor standards provisions applicable to contracts covering 
federally financed and assisted construction and labor standards 
provisions applicable to nonconstruction contracts as they are subject 
to the Conract Work Hours and Safety Standards Act, in regards to the 
assessment of liquidated damages.
    (b) Redelegation. None authorized except by virtue of succession.
    (c) Reporting. The official to whom authority is delegated in this 
regulation will assure that feedback is provided to keep the 
Administrator informed of significant actions, problems, or other 
matters of substance related to the exercise of the authority delegated 
hereunder.

[52 FR 35538, Sept. 22, 1987]

Subparts 6-9 [Reserved]



     Subpart 10--Inspection of Persons and Personal Effects at NASA 
Installations or on NASA Property; Trespass or Unauthorized Introduction 
                    of Weapons or Dangerous Materials

    Authority: 42 U.S.C. 2455.

[[Page 40]]


    Source: 65 FR 47663, Aug. 3, 2000, unless otherwise noted.



Sec. 1204.1000  Scope of subpart.

    This subpart establishes NASA policy and prescribes minimum 
procedures concerning the inspection of persons and property in their 
possession while entering, or on, or exiting NASA real property or 
installations (including NASA Headquarters, Centers, or Component 
Facilities). In addition, it proscribes unauthorized entry or the 
unauthorized introduction of weapons or other dangerous instruments or 
materials at any NASA installation.



Sec. 1204.1001  Policy.

    (a) In the interest of national security, NASA will provide 
appropriate and adequate protection or security for personnel, property, 
installations (including NASA Headquarters, Centers, and Component 
Facilities), and information in its possession or custody. In 
furtherance of this policy, NASA reserves the right to conduct an 
inspection of any person, including any property in the person's 
possession or control, as a condition of admission to, continued 
presence on, or exiting from, any NASA installation.
    (b) It is determined that this policy is intended to comply with the 
heightened security measures for installations owned or occupied by 
Federal agencies (in this case NASA), to mitigate threats to such 
installations and to better protect the persons and property thereon.



Sec. 1204.1002  Responsibility.

    The NASA Center Directors and the Associate Administrator for 
Headquarters Operations are responsible for implementing the provisions 
of this subpart. In implementing this subpart, these officials will 
coordinate their action with appropriate officials of other affected 
agencies.



Sec. 1204.1003  Procedures.

    (a) All entrances to NASA real property or installations (including 
NASA Headquarters, Centers, or Component Facilities) will be 
conspicuously posted with the following notices:
    (1) CONSENT TO INSPECTION: Your entry into, continued presence on, 
or exit from, this installation is contingent upon your consent to 
inspection of person and property.
    (2) UNAUTHORIZED INTRODUCTION OF WEAPONS OR DANGEROUS MATERIALS IS 
PROHIBITED: Unless specifically authorized by NASA, you may not carry, 
transport, introduce, store, or use firearms or other dangerous weapons, 
explosives or other incendiary devices, or other dangerous instrument or 
material likely to produce substantial injury or damage to persons or 
property.
    (b) Only NASA security personnel or members of the installation's 
uniformed security force will conduct inspections pursuant to this 
subpart. Such inspections will be conducted in accordance with 
guidelines established by the Director, Security Management Office, NASA 
Headquarters.
    (c) If an individual does not consent to an inspection, it will not 
be conducted, but the individual will be denied admission to, or be 
escorted off the installation.
    (d) If, during an inspection, an individual is found to be in 
unauthorized possession of items believed to represent a threat to the 
safety or security of the installation, the individual will be denied 
admission to or be escorted off the installation, and appropriate law 
enforcement authorities will be notified immediately.
    (e) If, during an inspection conducted pursuant to this subpart, an 
individual is in possession of U.S. Government property without proper 
authorization, that person will be required to relinquish the property 
to the security representative pending proper authorization for the 
possession of the property or its removal from the installation. The 
individual relinquishing the property will be provided with a receipt 
for the property.



Sec. 1204.1004  Trespass.

    Unauthorized entry upon any NASA real property or installation is 
prohibited.



Sec. 1204.1005  Unauthorized introduction of firearms or weapons, explosives, or other dangerous materials.

    (a) The unauthorized carrying, transporting, or otherwise 
introducing or

[[Page 41]]

causing to be introduced, or using firearms or other dangerous weapons, 
explosives or other incendiary devices, or other dangerous instrument, 
substance, or material likely to produce substantial injury or damage to 
persons or property, into or upon NASA real property, facility, or 
installation, is prohibited.
    (b) Paragraph (a) of this section shall not apply to:
    (1) The lawful performance of official duties by an officer, agent, 
or employee of the United States, a State, or a political subdivision 
thereof, or NASA contractor, who is authorized to carry firearms or 
other material covered by paragraph (a) of this section.
    (2) The lawful carrying of firearms or other dangerous weapons at or 
on a NASA installation after written prior approval has been obtained 
from the installation Security Office in connection with sanctioned 
hunting, range practice, or other lawful purpose.



Sec. 1204.1006  Violations.

    Please take notice that anyone violating these regulations may be 
cited for violating Title 18 of the United States Code (U.S.C.) Section 
799, which states that whoever willfully shall violate, attempt to 
violate, or conspire to violate any regulation or order promulgated by 
the Administrator of the National Aeronautics and Space Administration 
for the protection or security of any laboratory, station, base or other 
facility, or part thereof, or any aircraft, missile, spacecraft, or 
similar vehicle, or part thereof, or other property or equipment in the 
custody of the Administration [NASA], or any real or personal property 
or equipment in the custody of any contractor under any contract with 
the Administration or any subcontractor of any such contractor, shall be 
fined under this title [Title 18], or imprisoned not more than one year, 
or both.

Subparts 11-13 [Reserved]



Subpart 14--Use of NASA Airfield Facilities by Aircraft Not Operated for 
                  the Benefit of the Federal Government

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

    Source: 56 FR 35812, July 29, 1991, unless otherwise noted.



Sec. 1204.1400  Scope.

    This subpart establishes the responsibility and sets forth the 
conditions and procedures for the use of NASA airfield facilities by 
aircraft not operated for the benefit of the Federal Government.



Sec. 1204.1401  Definitions.

    For the purpose of this subpart, the following definitions apply:
    (a) NASA Airfield Facility. Those aeronautical facilities owned and 
operated by NASA that consist of the following:
    (1) Shuttle Landing Facility. The aeronautical facility which is a 
part of the John F. Kennedy Space Center (KSC), Kennedy Space Center, 
Florida, and is located at 8041[min] west longitude and 
2837[min] north latitude.
    (2) Wallops Airport. The aeronautical facility which is part of the 
Wallops Flight Facility (WFF), Wallops Island, VA, and is located at 
7528[min] west longitude and 3756[min] 
north latitude in the general vicinity of Chincoteague, Virginia.
    (3) Moffett Federal Airfield (MFA). The aeronautical facility which 
is part of the Ames Research Center, Moffett Field, California, and is 
located at 12203[min] west longitude and 
3725[min] north latitude.
    (4) Crows Landing Airport. The aeronautical facility which is a part 
of the Crows Landing Flight Facility (CLEF) and is located at 
12106[min] west longitude and 3725[min] 
north latitude, 45 miles east of the Ames Research Center.
    (b) Aircraft not Operated for the Benefit of the Federal Government. 
Aircraft which are not owned or leased by the United States Government 
or aircraft carrying crew members or passengers

[[Page 42]]

who do not have official business requiring the use of a NASA airfield 
facility in the particular circumstance in question.
    (c) Official Business. Business, in the interest of the U.S. 
Government, which personnel aboard an aircraft must transact with U.S. 
Government personnel or organizations at or near a NASA facility. The 
use of a NASA airfield facility by transient aircraft to petition for 
U.S. Government business or to obtain clearance, servicing, or other 
items pertaining to itinerant operations is not considered official 
business.
    (d) User. An individual partnership or corporation owning, 
operating, or using an aircraft not operated for the benefit of the 
Federal Government in whose name permission to use a NASA airfield 
facility is to be requested and granted.
    (e) Hold Harmless Agreement. An agreement executed by the user by 
which the user acknowledges awareness of the conditions of the 
permission to use a NASA airfield facility, assumes any risks connected 
therewith, and releases the U.S. Government from all liability incurred 
by the use of such facility.
    (f) Use Permit. The written permission signed by the authorized 
approving official to land, take off, and otherwise use a NASA airfield 
facility. Such use permit may be issued for single or multiple 
occasions. The specific terms of the use permit and the provisions of 
this subpart govern the use which may be made of the airport by aircraft 
not operated for the benefit for the Federal Government.
    (g) Certificate of Insurance. A certificate signed by an authorized 
insurance company representative (or a facsimile of an insurance policy) 
evidencing that insurance is then in force with respect to any aircraft 
not operated for the benefit of the Federal Government, the user of 
which is requesting permission to use a NASA airfield facility (see 
Sec. 1204.1404(b)).

[56 FR 35812, July 29, 1991, as amended at 60 FR 37567, July 21, 1995]



Sec. 1204.1402  Policy.

    (a) NASA airfields are not normally available to the general public; 
hence, any use of airfield facilities by aircraft not operated for the 
benefit of the Federal Government shall be within the sole discretion of 
the approving authorities.
    (b) Except in the event of a declared in-flight emergency (see Sec. 
1204.1406) or as otherwise determined by an approving authority, 
aircraft not operated for the benefit of the Federal Government are not 
permitted to land or otherwise use NASA airfield facilities.
    (c) Any use of a NASA airfield facility by aircraft not operated for 
the benefit of the Federal Government shall be free of charge and no 
consideration (monetary or otherwise) shall be exacted or received by 
NASA for such use. However, each user, as a condition of receiving 
permission to use such airfield facility, shall agree to become familiar 
with the physical condition of the airfield; abide by the conditions 
placed upon such use; subject the aircraft, the user, and those 
accompanying the user to any requirements imposed by NASA in the 
interest of security and safety while the aircraft or persons are on a 
NASA facility; use the facilities entirely at the user's own risk; hold 
the Federal Government harmless with respect to any and all liabilities 
which may arise as a result of the use of the facilities; and carry 
insurance covering liability to others in amounts not less than those 
listed in the Hold Harmless Agreement.
    (d) Permission to use a NASA airfield facility will be granted only 
in accordance with the limitations and procedures established by an 
approving authority and then only when such use will not compete with 
another airport in the vicinity which imposes landing fees or other user 
charges.
    (e) In no event, except for an in-flight emergency (see Sec. 
1204.1406), will permission to use NASA airfield facilities be granted 
to an aircraft arriving directly from, or destined for, any location 
outside the continental United States unless previously arranged and 
approved by the authorized approving official.
    (f) Permission to use NASA airfields may be granted only to those 
users having the legal capacity to contract and whose aircraft are in 
full compliance with applicable Federal Aviation

[[Page 43]]

Administration (FAA) or other cognizant regulatory agency requirements.
    (g) Permission to use NASA airfields, except in connection with a 
declared in-flight emergency, will consist only of the right to land, 
park an aircraft, and subsequently take off. NASA is not equipped to 
provide any other services such as maintenance or fuel and such services 
will not be provided except following an in-flight emergency.



Sec. 1204.1403  Available airport facilities.

    The facilities available vary at each NASA Installation having an 
airfield. The airport facilities available are:
    (a) Shuttle Landing Facility--(1) Runways. Runway 15-33 is 15,000 
feet long and 300 feet wide with 1,000-foot overruns. The first 3,500 
feet at each end of the runway have been modified for smoothness. The 
center 8,000 feet of the runway is grooved for improved braking under 
wet conditions.
    (2) Parking Areas and Hangar Space. No hangar space is available. 
Limited available concrete parking ramp space makes precoordination 
necessary.
    (3) Control Tower. The control tower is normally in operation from 
0800 to 1600 local time, Monday through Friday. Additional hours of 
operation are filed with the St. Petersburg Flight Service Station 
(FSS). The tower may be contacted on 128.55 MHz or 284.0 MHz. FAA 
regulations pertaining to the operation of aircraft at airports with an 
operating control tower (Sec. 91.87 of this title) will apply. When the 
tower is not in operation, the FAA regulations pertaining to the 
operation of aircraft at airports without an operating control tower 
(Sec. 91.89 of this title) will apply.
    (4) Navigation Aids. A Microwave Scanning Beam Landing System 
(MSBLS) and a Tactical Airborne Navigation System (TACAN) are installed 
at the Facility. There are two published TACAN approaches and an 
approved and published nondirectional beacon (NDB) approach available 
from Titusville. Runway approach lighting (similar to Category II ALSF-
2) and edge lights are available by prior arrangement.
    (5) Hazards. There are towers and buildings south, southeast, and 
northeast of the facility as high as 550 feet that could pose hazards to 
air navigation. All are marked with obstruction lights.
    (6) Emergency Equipment. Aircraft Rescue and Fire-fighting (ARFF) 
equipment will be provided in accordance with 14 CFR part 139.
    (b) Wallops Airport--(1) Runways. There are three hard surfaced 
runways in satisfactory condition. The runways and taxiways are concrete 
and/or asphalt. Runway 10-28 is 8,000 feet long, 200 feet wide with 
maximum wheel load of 57,500 pounds; runway 04-22 is 8,750 feet long, 
150 feet wide with maximum wheel load of 57,500 pounds; and runway 17-35 
is 4,820 feet long, 150 feet wide with maximum wheel load of 14,700 
pounds.
    (2) Parking Areas and Hangar Space. No hangar space is available. 
However, limited concrete parking ramp space is available as directed by 
the control tower.
    (3) Control Tower. This control tower is normally in operation from 
0630 to 1830 local time, Monday through Friday, excluding Federal 
holidays. The tower may be contacted on 126.5 MHz or 394.3 MHz. When the 
tower is in operation, FAA regulations pertaining to the operation of 
aircraft at airports with an operating tower (Sec. 91.87 of this title) 
will apply. When the tower is not in operation, all aircraft operations 
will be handled by Wallops UNICOM on the tower frequency, and FAA 
regulations pertaining to the operation of aircraft at airports without 
an operating control tower (Sec. 91.89 of this title) will apply. In 
addition to Federal Aviation Regulations (FAR's) (s 91 of this title), 
Wallops requires that pilots obtain clearances from the Wallops UNICOM 
before landings, takeoffs, and taxiing. Civil aircraft operations are 
normally confined to daylight hours.
    (4) Navigation Aids. All runways, 04-22, 10-28, and 17-35 are 
lighted. Both active taxiways, parallels 04-22 and 10-28, are lighted. 
Airfield lighting is available upon request. All runway approaches are 
equipped with operating precision approach path indicator (PAPI) systems 
and are available on request. All airfield obstructions are equipped 
with red obstruction lights.

[[Page 44]]

    (5) Hazards. Numerous towers in airport vicinity up to 241 feet 
above ground level. Existing tree obstructions are located 1500 feet 
west of runway 10 threshold. High shore bird population exists in the 
Wallops area. Deer occasionally venture across runways. Light-controlled 
traffic crossovers are in existence. Potential radio frequency (RF) 
hazards exist from tracking radars. Hazards involving aircraft and 
rocket launch operations exist when Restricted Area R-6604 is active.
    (6) Emergency Equipment. Aircraft rescue and fire-fighting equipment 
is normally available on a continuous basis.
    (c) Moffett Federal Airfield--(1) Runways. There are two parallel 
runways, 32-14, both in satisfactory to good condition. The runways and 
taxiways are concrete and/or asphalt. Runway 32R-14L is 9,200 feet long, 
200 feet wide; 32L-14R is 8,125 feet long, 200 feet wide with a 600 foot 
displaced threshold on 32L.
    (2) Parking Areas and Hangar Space. Hangar space is not available; 
concrete parking ramp space is available as directed by the control 
tower.
    (3) Control Tower. The control tower normally operates from 0700 to 
2300 local time, 7 days a week, excluding Federal holidays. The tower 
frequencies are 126.2 Mhz, 353.2 Mhz, and 340.2 Mhz. When the tower is 
operating, FAA regulations pertaining to the operation of aircraft at 
airports with an operating tower (Sec. 91.87 of this title) will apply. 
When the tower is not in operation, all aircraft operations will be 
conducted by Moffett UNICOM on the tower frequency. FAA regulations 
pertaining to the operation of aircraft at airports without an operating 
control tower (Sec. 91.89 of this title) will apply.
    (4) Navigation Aids. An Instrument Landing System (ILS) is 
installed. An ILS/DME approach to runway 32R and an LOC/DME approach to 
runway 14L are published in DOD Flight Information Publication 
(Terminal), Low Altitude United States, Volume 2. ILS frequency is 
110.35 Mhz, identifiers are Runway 32R, I-NUQ; Runway 14L, I-MNQ; 
Tactical Airborne Navigation (TACAN) (DME) is Channel 123, identifier is 
NUQ. Precision Approach Path Indicators (PAPI) are to be installed by 
July 1, 1995, to provide visual reference for the ILS and LOC approaches 
to runways 32R and 14L. A TACAN with approved and published approaches 
is operational at the facility (identification is NUQ, Channel 123). A 
Radio Controlled Lighting System (RCLS) is operational for the runway 
lights on 32R-14L; 3 clicks within 5 seconds, low intensity; 5 clicks, 
medium intensity; 7 clicks, high intensity (tower frequency, 126.2 Mhz). 
Lights automatically extinguish after 15 minutes.
    (5) Hazards. Large blimp hangars (approximately 200 feet high) 
bracket the parallel runways, one on the west side, two on the east 
side. A freeway at the approach end of 32L displaces the threshold 600 
feet.
    (6) Emergency Equipment. Aircraft Rescue and Fire Fighting (ARFF) 
equipment is provided by the California Air National Guard continuously 
in accordance with U.S. Air Force Regulations.
    (d) Crows Landing Airport--(1) Runways. There are two concrete 
runways, 35-17 and 30-12, both in satisfactory condition. Parallel 
taxiways are asphalt overlay or concrete. Runway 35-17 is 7,950 feet 
long, 200 feet wide; runway 30-12 is 6,975 feet long, 200 feet wide.
    (2) Parking Areas and Hangar Space. Hangars/hangar space do not 
exist; concrete parking ramp space is available as directed by the 
control tower.
    (3) Control Tower. The control tower normally operates only when 
research flight is scheduled by NASA-Ames. The airfield is closed at all 
other times except as arranged by other Federal users with the Chief, 
Airfield Management Office, Moffett Federal Airfield. The tower 
frequencies are 125.05 Mhz, 126.2 Mhz, 328.1 Mhz, and 337.8 Mhz. When 
the tower is operating, FAA regulations pertaining to the operation of 
aircraft at airports with an operating tower (Sec. 91.87 of this title) 
will apply. When the tower is not operating, all aircraft operations 
will be conducted with Crows Landing UNICOM on the primary tower 
frequency. FAA regulations pertaining to the operation of aircraft at 
airports without an operating control tower (Sec. 91.89 of this title) 
will apply.
    (4) Navigation Aids. Crows Landing Airport is a VFR facility. No 
certified

[[Page 45]]

NAVAIDS or published approach procedures exist.
    (5) Hazards. Crows Landing Airport is located in an agricultural 
area. No obstructions exist within or immediately adjacent to the 
airspace. The most persistent potential hazard is that of agricultural 
aircraft (crop dusters) without radios which transit the airspace.
    (6) Emergency Equipment. Aircraft Rescue and Fire Fighting (ARFF) 
equipment and services are provided by the California Air National Guard 
only during published hours of operation.
    (e) Other Facilities. No facilities or services other than those 
described above are available except on an individual emergency basis to 
any user.
    (f) Status of Facilities. Changes to the status of the KSC, WFF, 
MFA, and CLFF facilities will be published in appropriate current FAA or 
DOD aeronautical publications.

[56 FR 35812, July 29, 1991, as amended at 60 FR 37568, July 21, 1995]



Sec. 1204.1404  Requests for use of NASA airfield facilities.

    (a) Request for use of a NASA airfield, whether on a one time or 
recurring basis, must be in writing and addressed to the appropriate 
NASA facility, namely:
    (1) Shuttle Landing Facility. Director of Center Support Operations, 
John F. Kennedy Space Center, Kennedy Space Center, Florida 32899.
    (2) Wallops Airport. Director of Suborbital Projects and Operations, 
Goddard Space Flight Center, Wallops Flight Facility, Wallops Island, 
Virginia 23337.
    (3) Moffett Federal Airfield and Crows Landing Flight Facility. 
Chief, Airfield Management Office, Ames Research Center, Mail Stop 158-
1, Moffett Field, California 94035-1000.
    (b) Such requests will:
    (1) Fully identify the prospective user and aircraft.
    (2) State the purpose of the proposed use and the reason why the use 
of the NASA airfield is proposed rather than a commercial airport.
    (3) Indicate the expected annual use, to include number and 
approximate date(s) and time(s) of such proposed use.
    (4) State that the prospective user is prepared to fully comply with 
the terms of this subpart 14 and the use permit which may be issued.
    (c) Upon receipt of the written request for permission to use the 
airport, the NASA official designated by each facility will request 
additional information, if necessary, and forward both this regulation 
and the required Hold Harmless Agreement for execution by the requestor 
or forward, where appropriate, a denial of the request.
    (d) The signed original of the Hold Harmless Agreement shall be 
returned to the designated NASA official, and a copy retained in the 
aircraft at all times. Such copy shall be exhibited upon proper demand 
by any designated NASA official.
    (e) At the same time that the prospective user returns the executed 
original of the Hold Harmless Agreement, the user shall forward to the 
designated NASA official the required Certificate of Insurance and 
waiver of rights to subrogation. Such certificate shall evidence that 
during any period for which a permit to use is being requested, the 
prospective user has in force a policy of insurance covering liability 
in amounts not less than those listed in the Hold Harmless Agreement.
    (f) When the documents (in form and substance) required by 
paragraphs b through e of this section have been received, they will be 
forwarded with a proposed use permit to the approving authority for 
action.
    (g) The designated NASA official will forward the executed use 
permit or notification of denial thereof to the prospective user after 
the approving authority has acted.

[56 FR 35812, July 29, 1991, as amended at 60 FR 37568, July 21, 1995]



Sec. 1204.1405  Approving authority.

    The authority to establish limitations and procedures for use of a 
NASA airfield, as well as the authority to approve or disapprove the use 
of the NASA airfield facilities subject to the terms and conditions of 
this subpart and any supplemental rules or procedures established for 
the facility is vested in:

[[Page 46]]

    (a) Shuttle Landing Facility. Director of Center Support Operations, 
Kennedy Space Center, NASA.
    (b) Wallops Airport. Director of Suborbital Projects and Operations, 
Goddard Space Flight Center, Wallops Flight Facility, NASA.
    (c) Moffett Federal Airfield and Crows Landing Flight Facility. 
Chief, Airfield Management Office, Ames Research Center, NASA.

[56 FR 35812, July 29, 1991, as amended at 60 FR 37568, July 21, 1995]



Sec. 1204.1406  Procedures in the event of a declared in-flight emergency.

    (a) Any aircraft involved in a declared in-flight emergency that 
endangers the safety of its passengers and aircraft may land at a NASA 
airfield. In such situations, the requirements for this subpart for 
advance authorizations, do not apply.
    (b) NASA personnel may use any method or means to clear the aircraft 
or wreckage from the runway after a landing following an in-flight 
emergency. Care will be taken to preclude unnecessary damage in so 
doing. However, the runway will be cleared as soon as possible for 
appropriate use.
    (c) The emergency user will be billed for all costs to the 
Government that result from the emergency landing. No landing fee will 
be charged, but the charges will include the labor, materials, parts, 
use of equipment, and tools required for any service rendered under 
these circumstances.
    (d) In addition to any report required by the Federal Aviation 
Administration, a complete report covering the landing and the emergency 
will be filed with the airfield manager by the pilot or, if the pilot is 
not available, any other crew member or passenger.
    (e) Before an aircraft which has made an emergency landing is 
permitted to take off (if the aircraft can and is to be flown out) the 
owner or operator thereof shall make arrangements acceptable to the 
approving authority to pay any charges assessed for services rendered 
and execute a Hold Harmless Agreement. The owner or operator may also be 
required to furnish a certificate of insurance, as provided in Sec. 
1204.1404, covering such takeoff.



Sec. 1204.1407  Procedure in the event of an unauthorized use.

    Any aircraft not operated for benefit of the Federal Government 
which lands at a NASA airfield facility without obtaining prior 
permission from the approving authority, except in a bona fide 
emergency, is in violation of this subpart. Such aircraft will 
experience delays while authorization for departure is obtained pursuant 
to this subpart and may, contrary to the other provisions of this 
subpart, be required, at the discretion of the approving authority, to 
pay a user fee of not less than $100. Before the aircraft is permitted 
to depart, the approving authority will require full compliance with 
this subpart 1204.14, including the filing of a complete report 
explaining the reasons for the unauthorized landing. Violators could 
also be subject to legal liability for unauthorized use. When it appears 
that the violation of this subpart was deliberate or is a repeated 
violation, the matter will be referred to the Aircraft Management 
Office, NASA Headquarters, which will then grant any departure 
authorization.



 Subpart 15--Intergovernmental Review of National Aeronautics and Space 
                 Administration Programs and Activities

    Authority: E.O. 12372, July 14, 1982, 47 FR 30959, as amended April 
8, 1983, 48 FR 15887; sec. 401 of the Intergovernmental Cooperation Act 
of 1968, as amended (31 U.S.C. 6506).

    Source: 48 FR 29340, June 24, 1983, unless otherwise noted.

    Editorial Note: For additional information, see related documents 
published at 47 FR 57369, December 23, 1982, 48 FR 17101, April 21, 
1983, and 48 FR 29096, June 24, 1983.



Sec. 1204.1501  Purpose.

    (a) The regulations in this part implement Executive Order 12372, 
``Intergovernmental Review of Federal Programs,'' issued July 14, 1982, 
and amended on April 8, 1983. These regulations also implement 
applicable provisions of section 401 of the Intergovernmental 
Cooperation Act of 1968, as amended.

[[Page 47]]

    (b) These regulations are intended to foster an intergovernmental 
partnership and a strengthened federalism by relying on state processes 
and on state, areawide, regional and local coordination for review of 
proposed direct Federal development.
    (c) These regulations are intended to aid the internal management of 
the Agency, and are not intended to create any right or benefit 
enforceable at law by a party against the agency or its officers.



Sec. 1204.1502  Definitions.

    Administrator means the Administrator of the U.S. National 
Aeronautics and Space Administration or an official or employee of the 
Agency acting for the Administrator under a delegation of authority.
    Agency means the U.S. National Aeronautics and Space Administration.
    Order means Executive Order 12372, issued July 14, 1982, and amended 
April 8, 1983, and titled ``Intergovernmental Review of Federal 
Programs.''
    State means any of the 50 states, the District of Columbia, the 
Commonwealth of Puerto Rico, the Commonwealth of the Northern Mariana 
Islands, Guam, American Samoa, the U.S. Virgin Islands, or the Trust 
Territory of the Pacific Islands.



Sec. 1204.1503  Programs and activities subject to these regulations.

    The Administrator publishes in the Federal Register a description of 
the Agency's programs and activities that are subject to these 
regulations.



Sec. 1204.1504  [Reserved]



Sec. 1204.1505  Federal interagency coordination.

    The Administrator to the extent practicable, consults with and seeks 
advice from all other substantially affected federal departments and 
agencies in an effort to assure full coordination between such agencies 
and the Agency regarding programs and activities covered under these 
regulations.



Sec. 1204.1506  Procedures for selecting programs and activities under these regulations.

    (a) A state may select any program or activity published in the 
Federal Register in accordance with Sec. 1204.1503 of this part for 
intergovernmental review under these regulations. Each state, before 
selecting programs and activities shall consult with local elected 
officials.
    (b) Each state that adopts a process shall notify the Administrator 
of the Agency's programs and activities selected for that process.
    (c) A state may notify the Administrator of changes in its 
selections at any time. For each change, the state shall submit to the 
Administrator an assurance that the state has consulted with local 
elected officials regarding the change. The Agency may establish 
deadlines by which states are required to inform the Administrator of 
changes in their program selections.
    (d) The Administrator uses a state's process as soon as feasible, 
depending on individual programs and activities, after the Administrator 
is notified of its selections.



Sec. 1204.1507  Communicating with State and local officials concerning the Agency's programs and activities.

    (a) For those programs and activities covered by a state process 
under Sec. 1204.1506 the Administrator, to the extent permitted by law:
    (1) Uses the official state process to determine views of state and 
local elected officials; and;
    (2) Communicates with state and local elected officials, through the 
official state process, as early in a program planning cycle as is 
reasonably feasible to explain specific plans and actions.
    (b) The Administrator provides notice to directly affected state, 
areawide, regional, and local entities in a state of proposed direct 
Federal development if:
    (1) The state has not adopted a process under the Order; or
    (2) The development involves a program or activity not selected for 
the state process.

[[Page 48]]


This notice may be made by publication in a periodical of general 
circulation in the area likely to be affected or other appropriate 
means, which the Agency in its discretion deems appropriate.



Sec. 1204.1508  Time limitations for receiving comments on proposed direct Federal development.

    (a) Except in unusual circumstances, the Administrator gives state 
processes or state, areawide, regional and local officials and entities 
at least 60 days from the date established by the Administrator to 
comment on proposed direct Federal development.
    (b) This section also applies to comments in cases in which the 
review, coordination, and communication with the Agency has been 
delegated.



Sec. 1204.1509  Receiving and responding to comments.

    (a) The Administrator follows the procedures in Sec. 1204.1510 if:
    (1) A state office or official is designated to act as a single 
point of contact between a state process and all federal agencies; and
    (2) That office or official transmits a state process recommendation 
for a program selected under Sec. 1204.1506.
    (b)(1) The single point of contact is not obligated to transmit 
comments from state, areawide, regional or local officials and entities 
where there is no state process recommendation.
    (2) If a state process recommendation is transmitted by a single 
point of contact, all comments from state, areawide, regional, and local 
officials and entities that differ from it must also be transmitted.
    (c) If a state has not established a process, or is unable to submit 
a state process recommendation, state, areawide, regional and local 
officals and entities may submit comments to the Agency.
    (d) If a program or activity is not selected for a state process, 
state, areawide, regional and local officials and entities may submit 
comments to the Agency. In addition, if a state process recommendation 
for a nonselected program or activity is transmitted to the Agency by 
the single point of contact, the Administrator follows the procedures of 
Sec. 1204.1510 of this part.
    (e) The Administrator considers comments which do not constitute a 
state process recommendation submitted under these regulations and for 
which the Administrator is not required to apply the procedures of Sec. 
1204.1510 of this part, when such comments are provided by a single 
point of contact, or directly to the Agency by a commenting party.



Sec. 1204.1510  Efforts to accommodate intergovernmental concerns.

    (a) If a state provides a state process recommendation to the Agency 
through its single point of contact, the Administrator either:
    (1) Accepts the recommendation;
    (2) Reaches a mutally agreeable solution with the state process; or
    (3) Provides the single point of contact with a written explanation 
of its decision, in such form as the Administrator in his or her 
discretion deems appropriate. The Administrator may also supplement the 
written explanation by providing the explanation to the single point of 
contact by telephone, other telecommunication, or other means.
    (b) In any explanation under paragraph (a)(3) of this section, the 
Administrator informs the single point of contact that:
    (1) The Agency will not implement its decision for a least ten days 
after the single point of contact receives the explanation; or
    (2) The Administrator has reviewed the decision and determined that, 
because of unusual circumstances, the waiting period of at least ten 
days is not feasible.
    (c) For purposes of computing the waiting period under paragraph 
(b)(1) of this section, a single point of contact is presumed to have 
received written notification five days after the date of mailing of 
such notification.



Sec. 1204.1511  Coordination in interstate situations.

    (a) The Administrator is responsible for--
    (1) Identifying proposed direct Federal development that has an 
impact on interstate areas;

[[Page 49]]

    (2) Notifying appropriate officials and entities in states which 
have adopted a process and which select the Agency's program or 
activity.
    (3) Making efforts to identify and notify the affected state, 
areawide, regional, and local officials and entities in those states 
that have not adopted a process under the Order or do not select the 
Agency's program or activity;
    (4) Responding pursuant to Sec. 1204.1510 of this part if the 
Administrator receives a recommendation from a designated areawide 
agency transmitted by a single point of contact, in cases in which the 
review, coordination, and communication with the Agency have been 
delegated.
    (b) The Administrator uses the procedures in Sec. 1204.1510 if a 
state process provides a state process recommendation to the Agency 
through a single point of contact.



Sec. 1204.1512  [Reserved]



Sec. 1204.1513  Waivers of provisions of these regulations.

    In an emergency, the Administrator may waive any provision of these 
regulations.



 Subpart 16--Temporary Duty Travel--Issuance of Motor Vehicle for Home-
                         to-Work Transportation

    Authority: 31 U.S.C. 1344 note, 40 U.S.C. 486(c).



Sec. 1204.1600  Issuance of motor vehicle for home-to-work.

    When a NASA employee on temporary duty travel is authorized to 
travel by Government motor vehicle and the official authorizing the 
travel determines that there will be a significant savings in time, a 
Government motor vehicle may be issued at the close of the preceding 
working day and taken to the employee's residence prior to the 
commencement of official travel. Similarly, when a NASA employee is 
scheduled to return from temporary duty travel after the close of 
working hours and the official authorizing the travel determines that 
there will be a significant savings in time, the motor vehicle may be 
taken to the employee's residence and returned the next regular working 
day.

[68 FR 60847, Oct. 24, 2003]

    Appendix A to Part 1204--Items to Cover in Memoranda of Agreement

    The items to be covered in Memoranda of Agreement between NASA 
Installations and state and areawide OMB Circular A-95 clearinghouses 
for coordinating NASA and civilian planning:
    1. Clearinghouses will be contacted at the earliest practicable 
point in project planning. Generally, this will be during the 
preparation of Preliminary Engineering Reports, or possibly earlier if 
meaningful information is available that could practically serve as an 
input in the decision-making process. It should be noted that 
clearinghouses are generally comprehensive planning agencies. As such, 
they are often the best repositories of information required for 
development planning and constitute a resource that can often save 
Federal planners substantial time and effort, if consulted early enough. 
In addition to providing information necessary for preliminary 
engineering, clearinghouses can make useful inputs to the development of 
environmental impact statements, as well as in reviewing draft 
statements. Thus, consultation at the earliest stage in planning can 
have substantial payoffs in installation development.
    2. Clearinghouses will be afforded a minimum time of 30 days in 
which to review and comment on a proposed project and a maximum time of 
45 days in which to complete such review.
    3. The minimum information to be provided to the clearinghouse will 
consist of project description, scope and purpose, summary technical 
data, maps and diagrams where relevant, and any data which would show 
the relationship of the proposed project or action to applicable land 
use plans, policies, and controls for the affected area.
    4. Establish procedures for notifying clearinghouses of the actions 
taken on projects, such as implementation, timing, postponement, 
abandonment, and explaining, where appropriate, actions taken contrary 
to clearinghouse recommendations.

                          PART 1205 [RESERVED]

[[Page 50]]



PART 1206--AVAILABILITY OF AGENCY RECORDS TO MEMBERS OF THE PUBLIC--Table of Contents




Sec.

                        Subpart 1-- Basic Policy

1206.100 Scope of part.
1206.101 Definitions.
1206.102 General policy.

                      Subpart 2--Records Available

1206.200 Types of records to be made available.
1206.201 Records which have been published.
1206.202 Deletion of segregable portions of a record.
1206.203 Creation of records.
1206.204 Records of interest to other agencies.
1206.205 Incorporation by reference.
1206.206 Availability for copying.
1206.207 Copies.
1206.208 Release of exempt records.

                          Subpart 3--Exemptions

1206.300 Exemptions.
1206.301 Limitation of exemptions.

    Subpart 4--Location for Inspection and Request of Agency Records

1206.400 Information Centers.
1206.401 Location of NASA Information Centers.
1206.402 Documents available for inspection at NASA Information Centers.
1206.403 Duty hours.

                       Subpart 5--Responsibilities

1206.500 Associate Deputy Administrator.
1206.501 General Counsel.
1206.502 Centers and Components.
1206.503 NASA Headquarters.
1206.504 Inspector General.
1206.505 Delegation of authority.

                          Subpart 6--Procedures

1206.600 Requests for records.
1206.601 Mail, fax and e-mail requests.
1206.602 Requests in person.
1206.603 Procedures and time limits for initial determinations.
1206.604 Request for records that exist elsewhere.
1206.605 Appeals.
1206.606 Request for additional records.
1206.607 Actions on appeals.
1206.608 Time extensions in unusual circumstances.
1206.609 Litigation.
1206.610 Notice to submitters of commercial information.

             Subpart 7--Search, Review, and Duplication Fees

1206.700 Schedule of fees.
1206.701 Categories of requesters.
1206.702 Waiver or reduction of fees.
1206.703 Aggregation of requests.
1206.704 Advance payments.
1206.705 Form of payment.
1206.706 Nonpayment of fees.

           Subpart 8--Failure to Release Records to the Public

1206.800 Failure to release records to the public.

                        Subpart 9--Annual Report

1206.900 Requirements for annual report.

    Authority: 5 U.S.C. 552, 552a; 42 U.S.C. 2473.

    Source: 64 FR 39404, July 22, 1999, unless otherwise noted.



                         Subpart 1--Basic Policy



Sec. 1206.100  Scope of part.

    This Part 1206 establishes the policies, responsibilities, and 
procedures for the release of Agency records which are under the 
jurisdiction of the National Aeronautics and Space Administration, 
hereinafter NASA, to members of the public. This part applies to 
information and Agency records located at NASA Headquarters, at NASA 
Centers, and at NASA Component, as defined in Part 1201 of this chapter.



Sec. 1206.101  Definitions.

    For the purposes of this part, the following definitions shall 
apply:
    (a) The term Agency records or records means any information that 
would be an Agency record subject to the requirements of the Freedom of 
Information Act (FOIA) when maintained by NASA in any format, including 
an electronic format. Such information includes all books, papers, maps, 
photographs, or other documentary materials made or received by NASA in 
pursuance of Federal law or in connection with the transaction of public 
business and preserved by NASA as evidence of the organization, 
functions, policies, decisions, procedures, operations, or

[[Page 51]]

other activities or because of the informational value of data contained 
therein. It does not include tangible objects or articles, such as 
structures, furniture, paintings, sculptures, exhibits, models, vehicles 
or equipment; library or museum material made or acquired and preserved 
solely for reference or exhibition purposes; or records of another 
agency, a copy of which may be in NASA's possession.
    (b) The term initial determination means a decision by a NASA 
official, in response to a request by a member of the public for an 
Agency record, on whether the record described in the request can be 
identified and located after a reasonable search and, if so, whether the 
record (or portions thereof) will be made available under this part or 
will be withheld from disclosure under Subpart 3 of this part.
    (c) The term appeal means a request by a member of the public, 
hereinafter requester, to the Administrator or designee, or, in the case 
of records as specified in Sec. 1206.504, to the Inspector General or 
designee for reversal of any adverse initial determination the requester 
has received in response to a request for an Agency record.
    (d) The term final determination means a decision by the 
Administrator or designee, or, in the case of records as specified in 
Sec. 1206.504, by the Inspector General or designee on an appeal.
    (e) The term working days means all days except Saturdays, Sundays, 
and Federal holidays.
    (f) As used in Sec. 1206.608, the term unusual circumstance means, 
but only to the extent reasonably necessary to the proper processing of 
a particular request for Agency records--
    (1) The need to search for and collect the requested records from 
NASA Centers or other establishments that are separate from the NASA 
Information Center processing the request (see Subpart 6 of this part 
for procedures for processing a request for Agency records);
    (2) The need to search for, collect, and appropriately examine a 
voluminous amount of separate and distinct records which are demanded in 
a single request; or
    (3) The need for consultation, which shall be conducted with all 
practicable speed, with another agency having a substantial interest in 
the determination of the request or among two or more components of NASA 
having substantial subject-matter interest therein.
    (g) A statute specifically providing for setting the level of fees 
for particular types of records (5 U.S.C. 552(a)(4)(A)(vi)) means any 
statute that specifically requires a government agency to set the level 
of fees for particular types of records in order to:
    (1) Serve both the general public and private sector organizations 
by conveniently making available government information;
    (2) Ensure that both groups and individuals pay the cost of 
publications and other services that are for their special use so that 
these costs are not borne by the general taxpaying public;
    (3) Operate, to the maximum extent possible an information 
dissemination activity on a self-sustaining basis (to the maximum extent 
possible); or
    (4) Return revenue to the Treasury for defraying, wholly or in part, 
appropriated funds used to pay the cost of disseminating government 
information.
    (h) The term direct costs means those expenditures that NASA 
actually incurs in searching for, duplicating, and downloading computer 
files and documents in response to a FOIA request. Direct costs include, 
for example, the salary of the employee who would ordinarily perform the 
work (the basic rate of pay for the employee plus 16 percent of that 
rate to cover benefits) and the cost of operating duplicating machinery. 
Direct costs do not include overhead expenses such as costs of space, 
heating, or lighting in the records storage facility.
    (i) The term search includes all time spent looking for material 
that is responsive to a request, including page-by-page or line-by-line 
identification of material within documents. A search for Agency records 
that are responsive to the request may be accomplished by manual or 
automated means. NASA will make reasonable efforts to search for records 
in electronic form or format, except when such efforts would

[[Page 52]]

significantly interfere with the operation of NASA's automated 
information systems. NASA will ensure that searching for material is 
done in the most efficient, least expensive manner so as to minimize 
costs for both the Agency and the requester and will only utilize line-
by-line, page-by-page search when consistent with this policy. Search 
should be distinguished, however, from review of material in order to 
determine whether the material is exempt from disclosure (see paragraph 
(k) of this section).
    (j) The term duplication means the process of making a copy of a 
document in order to respond to a FOIA request. Such copies can take the 
form of paper copy, electronic forms, microfilm, audio-visual materials, 
or machine-readable documentation (e.g., magnetic tape on disk), among 
others.
    (k) The term review means the process of examining documents located 
in response to a request (see paragraph (l) of this section) to 
determine whether any portion of any document located is permitted to be 
withheld. It also includes processing any documents for disclosure, 
e.g., doing all that is necessary to excise them and otherwise prepare 
them for release. Review does not include time spent resolving general 
legal or policy issues regarding the application of exemptions.
    (l) The term commercial use request means a request from or on 
behalf of one whom seeks information for a use or purpose that furthers 
the commercial, trade, or profit interests of either the requester or 
the person on whose behalf the request is made. In determining whether a 
requester properly belongs in this category, NASA will look first to the 
use to which a requester will put the documents requested. When NASA has 
reasonable cause to doubt the use to which a requester will put the 
records sought or when the use is not clear from the request itself, 
NASA will ask the requester to further clarify the immediate use for the 
requested records. A request from a corporation (not a news media 
corporation) may be presumed to be for commercial use unless the 
requester demonstrates that it qualifies for a different fee category.
    (m) The term educational institution refers to a preschool, a public 
or private elementary or secondary school, an institution of graduate 
higher education, an institution of undergraduate higher education, an 
institution of professional education, and an institution of vocational 
education, operating a program or programs of scholarly research.
    (n) The term noncommercial scientific institution refers to an 
institution that is not operated on a commercial basis as that term is 
referenced in paragraph (l) of this section, and which is operated 
solely for the purpose of conducting scientific research, the results of 
which are not intended to promote any particular product or industry.
    (o) The term representative of the news media means any person 
actively gathering news for an entity that publishes, broadcasts, or 
makes news available to the public. The term news means information 
about events that would be of interest to the public. Examples of news 
media include, but are not limited to, television or radio stations 
broadcasting to the public at large, publishers of periodicals who make 
their products available for purchase or subscription by the general 
public (but only in those instances when they can qualify as 
disseminators of news), and entities that disseminate news to the 
general public through telephone, computer or other telecommunications 
methods. Moreover, as traditional methods of news delivery evolve (e.g., 
electronic dissemination of newspapers through telecommunications 
services), such alternative media would be included in this category. In 
the case of freelance journalists, they may be regarded as working for a 
news organization if they can demonstrate a solid basis for expecting 
publication through that organization, even though not actually employed 
by it. A publication contract would be the clearest proof, but NASA may 
also look to the past publication record of a requester in making this 
determination.
    (p) The term commercial information means, for the purpose of 
applying the notice requirements of Sec. 1206.610, information provided 
by a submitter and in the possession of NASA, that may arguably be 
exempt from disclosure

[[Page 53]]

under the provisions of Exemption 4 of the FOIA (5 U.S.C. 552(b)(4)). 
The meaning ascribed to this term for the purpose of this notice 
requirement is separate and should not be confused with use of this or 
similar terms in determining whether information satisfies one of the 
elements of Exemption 4.
    (q) The term submitter means a person or entity that is the source 
of commercial information in the possession of NASA. The term submitter 
includes, but is not limited to, corporations, state governments, and 
foreign governments. It does not include other Federal Government 
agencies or departments.
    (r) The term compelling need means:
    (1) That a failure to obtain requested records on an expedited basis 
could reasonably be expected to pose an imminent threat to the life or 
physical safety of an individual; or
    (2) With respect to a request made by a person primarily engaged in 
disseminating information, urgency to inform the public concerning 
actual or alleged Federal government activity.
    (s) The term electronic reading room means a World Wide Web site 
from which members of the public can access information regarding 
activities, missions, organizations, publications, or other material 
related to NASA's congressional mandate.



Sec. 1206.102  General policy.

    (a) In accordance with section 203(a)(3) of the National Aeronautics 
and Space Act of 1958 (42 U.S.C. 2473(a)(3)), it has been and continues 
to be NASA policy to provide for the ``widest practicable and 
appropriate dissemination of information concerning its activities and 
the results thereof.''
    (b) In compliance with the Freedom of Information Act, as amended (5 
U.S.C. 552), a positive and continuing obligation exists for NASA to 
make available to the fullest extent practicable upon request by members 
of the public all Agency records under its jurisdiction, as described in 
Subpart 2 of this part, except to the extent that they may be exempt 
from disclosure under Subpart 3 of this part.



                      Subpart 2--Records Available



Sec. 1206.200  Types of records to be made available.

    (a) Records required to be published in the Federal Register. The 
following records are required to be published in the Federal Register, 
for codification in Title 14, Chapter V, of the CFR.
    (1) Description of NASA Headquarters and NASA Centers and the 
established places at which, the employees from whom, and the methods 
whereby, the public may secure information, make submittals or requests, 
or obtain decisions;
    (2) Statements of the general course and method by which NASA's 
functions are channeled and determined, including the nature and 
requirements of all formal and informal procedures available;
    (3) Rules of procedure, descriptions of forms available or the 
places at which forms may be obtained, and instructions regarding the 
scope and contents of all papers, reports, or examinations;
    (4) Substantive rules of general applicability adopted as authorized 
by law, and statements of general policy or interpretations of general 
applicability formulated and adopted by NASA;
    (5) Each amendment, revision, or repeal of the foregoing.
    (b) Agency opinions, orders, statements, and manuals.
    (1) Unless they are exempt from disclosure under Subpart 3 of this 
part, or unless they are promptly published and copies offered for sale, 
NASA shall make available the following records for public inspection 
and copying or purchase:
    (i) All final opinions (including concurring and dissenting 
opinions) and all orders made in the adjudication of cases;
    (ii) Those statements of NASA policy and interpretations which have 
been adopted by NASA and are not published in the Federal Register;
    (iii) Administrative staff manuals (or similar issuances) and 
instructions to staff that affect a member of the public;
    (iv) Copies of all records, regardless of form or format, which have 
been released to any person under subpart 6

[[Page 54]]

herein and which, because of the nature of their subject matter, the 
Agency determines have become or are likely to become the subject of 
subsequent requests for substantially the same records.
    (v) A general index of records referred to under paragraph 
(b)(1)(iv) of this section.
    (2) (i) For records created after November 1, 1997, which are 
covered by paragraph (b)(l)(i) through (b)(l)(v) of this section, such 
records shall be available electronically, through an electronic reading 
room and in electronic forms or formats.
    (ii) In connection with all records required to be made available or 
published under this paragraph (b), identifying details shall be deleted 
to the extent required to prevent a clearly unwarranted invasion of 
personal privacy. However, in each case the justification for the 
deletion shall be explained fully in writing. The extent of such 
deletion shall be indicated on the portion of the record which is made 
available or published, unless including that indication would harm an 
interest protected by an exemption in Subpart 3. If technically 
feasible, the extent of the deletion shall be indicated at the place in 
the record where the deletion is made.
    (c) Other Agency records.
    (1) In addition to the records made available or published under 
paragraphs (a) and (b) of this section, NASA shall, upon request for 
other records made in accordance with this part, make such records 
promptly available to any person, unless they are exempt from disclosure 
under Subpart 3 of this part, or unless they may be purchased from other 
readily available sources, as provided in Sec. 1206.201.
    (2) Furthermore, at a minimum, NASA will maintain in its electronic 
reading room records created after November 1, 1997, under paragraphs 
(b)(1)(iv) and (v) and a guide for requesting records or information 
from NASA. Such guide shall include all NASA major information systems, 
a description of major information and record locator systems, and a 
handbook for obtaining various types and categories of NASA public 
information through the FOIA.



Sec. 1206.201  Records which have been published.

    Publication in the Federal Register is a means of making certain 
Agency records are available to the public. NASA has a FOIA Electronic 
Reading Room at NASA Headquarters and each of its Centers. Also, the 
Commerce Business Daily, Synopsis of U.S. Government Proposed 
Procurement, Sales and Contract Awards (Department of Commerce) is a 
source of information concerning Agency records or actions. Various 
other NASA publications and documents, and indexes thereto, are 
available from other sources, such as the U.S. Superintendent of 
Documents, the National Technical Information Service (Department of 
Commerce), and the Earth Resources Observation Systems Data Center 
(Department of the Interior). Such publications and documents are not 
required to be made available or reproduced in response to a request 
unless they cannot be purchased readily from available sources. If a 
publication or document is readily available from a source other than 
NASA, the requester shall be informed of the procedures to follow to 
obtain the publication or document.



Sec. 1206.202  Deletion of segregable portions of a record.

    If a record requested by a member of the public contains both 
information required to be made available and that which is exempt from 
disclosure under Subpart 3 of this part, and the portion of the records 
that is required to be made available is reasonably segregable from the 
portion that is exempt, the portion that is exempt from disclosure shall 
be deleted and the balance of the record shall be made available to the 
requester. If the nonexempt portion of the record appears to be 
unintelligible or uninformative, the requester shall be informed of that 
fact, and such nonexempt portion shall not be sent to the requester 
unless thereafter specifically requested. If technically feasible, the 
amount of information deleted shall be indicated on the released portion 
of the record, unless including that indication would harm an interest 
protected by the exemption in Subpart 3 under which the deletion is 
made.

[[Page 55]]



Sec. 1206.203  Creation of records.

    Records will not be created by compiling selected items from the 
files at the request of a member of the public, nor will records be 
created to provide the requester with such data as ratios, proportions, 
percentages, frequency distributions, trends, correlations, or 
comparisons.



Sec. 1206.204  Records of interest to other agencies.

    If a NASA record is requested and another agency has a substantial 
interest in the record, such an agency shall be consulted on whether the 
record shall be made available under this part (see Sec. 
1206.101(f)(3)). If a record is requested that is a record of another 
agency, the request shall be returned to the requester, as provided in 
Sec. 1206.604(c) unless NASA has possession and control of the record 
requested.



Sec. 1206.205  Incorporation by reference.

    Records reasonably available to the members of the public affected 
thereby, shall be deemed published in the Federal Register when 
incorporated by reference in material published in the Federal Register 
(pursuant to the Federal Register regulation on incorporation by 
reference, 1 CFR Part 51).



Sec. 1206.206  Availability for copying.

    Except as provided in Sec. 1206.201, the availability of a record 
for inspection shall include the opportunity to extract information 
therefrom or to purchase copies.



Sec. 1206.207  Copies.

    The furnishing of a single copy of the requested record will 
constitute compliance with this part.



Sec. 1206.208  Release of exempt records.

    If a record which has been requested is exempt from disclosure under 
Subpart 3 of this part, the record may nevertheless be made available 
under the procedures of Subpart 6 of this part if it is determined by an 
official authorized to make either an initial determination or a final 
determination that such action would not be inconsistent with a purpose 
of the exemptions set forth in Subpart 3 of this part.



                          Subpart 3--Exemptions



Sec. 1206.300  Exemptions.

    (a) Under 5 U.S.C. 552(b) Agency records falling within the 
exemptions of paragraph (b) of this section are not required to be made 
available under this part. Such records may nevertheless be made 
available if it is determined that such actions would not be 
inconsistent with a purpose of the exemption (see Sec. 1206.208).
    (b) The requirements of this part to make Agency records available 
do not apply to matters that are--
    (1)(i) Specifically authorized under criteria established by an 
Executive Order to be kept secret in the interest of national defense or 
foreign policy and
    (ii) Are in fact properly classified pursuant to such Executive 
Order;
    (2) Related solely to the internal personnel rules and practices of 
NASA;
    (3) Specifically exempted from disclosure by statute (other than 5 
U.S.C. 552), provided that such statute:
    (i) Requires that the matters be withheld from the public in such a 
manner as to leave no discretion on the issue, or
    (ii) Establishes particular criteria for withholding or refers to 
particular types of matters to be withheld;
    (4) Trade secrets and commercial or financial information obtained 
from a person which is privileged or confidential;
    (5) Interagency or intra-agency memoranda or letters which would not 
be available by law to a party other than an agency in litigation with 
NASA;
    (6) Personnel and medical files and similar files the disclosure of 
which would constitute a clearly unwarranted invasion of personal 
privacy;
    (7) Records or information compiled for law enforcement purposes, 
but only to the extent that the production of such law enforcement 
records or information--
    (i) Could reasonably be expected to interfere with enforcement 
proceedings,
    (A) Whenever a request is made which involves access to these 
records and--

[[Page 56]]

    (1) The investigation or proceeding involves a possible violation of 
criminal law; and
    (2) There is reason to believe that the subject of the investigation 
or proceeding is not aware of its pendency, and disclosure of the 
existence of the records could reasonably be expected to interfere with 
enforcement proceedings, the Agency may, during only such time as that 
circumstance continues, treat the records as not subject to the 
requirements of 5 U.S.C. 552.
    (B) [Reserved]
    (ii) Would deprive a person of a right to a fair trial or an 
impartial adjudication,
    (iii) Could reasonably be expected to constitute an unwarranted 
invasion of personal privacy,
    (iv) Could reasonably be expected to disclose the identity of a 
confidential source, including a State, local, or foreign agency or 
authority or any private institution which furnished information on a 
confidential basis, and, in the case of a record or information compiled 
by criminal law enforcement authority in the course of a criminal 
investigation or by an agency conducting a lawful national security 
intelligence investigation, information furnished by a confidential 
source. Whenever informant records maintained by a criminal law 
enforcement agency under an informant's name or personal identifier are 
requested by a third party according to the informant's name or personal 
identifier, the Agency may treat the records as not subject to the 
requirements of 5 U.S.C. 552 unless the informant's status as an 
informant has been officially confirmed.
    (v) Would disclose techniques and procedures for law enforcement 
investigations or prosecutions, or would disclose guidelines for law 
enforcement investigations or prosecutions if such disclosure could 
reasonably be expected to risk circumvention of the law, or
    (vi) Could reasonably be expected to endanger the life or physical 
safety of any individual.
    (8) Contained in or related to examination, operating, or condition 
reports prepared by, on behalf of, or for the use of an agency 
responsible for the regulation or supervision of financial institutions; 
or
    (9) Geological and geophysical information and data, including maps, 
concerning wells.



Sec. 1206.301  Limitation of exemptions.

    (a) This Part 1206 does not authorize the withholding of information 
or the availability of records to the public, except as specifically 
stated in this part.
    (b) Nothing in this part shall be construed as authority to withhold 
information from Congress.



    Subpart 4--Location for Inspection and Request of Agency Records



Sec. 1206.400  Information Centers.

    NASA will maintain Information Centers as set forth in this subpart.



Sec. 1206.401  Location of NASA Information Centers.

    (a) NASA will maintain the following Information Centers, at which 
Agency records may be inspected, from which copies of Agency records may 
be requested and at which copies of Agency forms may be obtained:
    (1) NASA Headquarters (HQ) Information Center, National Aeronautics 
and Space Administration, Washington, DC 20546.
    (2) NASA Information Center, Ames Research Center (ARC), Moffett 
Field, CA 94035.
    (3) NASA Information Center, Hugh L. Dryden Flight Research Center, 
(DFRC), Post Office Box 273, Edwards, CA 93523.
    (4) NASA Information Center, Glenn Research Center (GRC), 21000 
Brookpark Road, Cleveland, OH 44135.
    (5) NASA Information Center, Goddard Space Flight Center (GSFC), 
Greenbelt, MD 20771.
    (6) NASA Information Center, John F. Kennedy Space Center (KSC), 
Kennedy Space Center, FL 32899.
    (7) NASA Information Center, Langley Research Center (LaRC), Langley 
Station, Hampton, VA 23665.
    (8) NASA Information Center, Lyndon B. Johnson Space Center (JSC), 
2101 NASA Road 1, Houston, TX 77058.

[[Page 57]]

    (9) NASA Information Center, George C. Marshall Space Flight Center 
(MSFC), Huntsville, AL 35812.
    (10) NASA Information Center, John C. Stennis Space Center (SSC), MS 
39529.
    (11) NASA Information Center, NASA Management Office Jet Propulsion 
Laboratory (JPL), 4800 Oak Grove Drive, Pasadena, CA 91109.
    (12) NASA Information Center, Wallops Flight Facility (WFF), Wallops 
Island, VA 23337.
    (b) NASA Headquarters and each NASA Center also has a FOIA 
Electronic Reading Room on the Internet. The Uniform Resource Locator 
(URL) addresses are as follows:
    (1) (HQ) http://www.hq. nasa.gov/office/pao /FOIA/;
    (2) (ARC) http://george .arc.nasa.gov/dx /FOIA/elec.html;
    (3) (DFRC) http://www.dfrc. nasa.gov/FOIA/ readroom.html;
    (4) (GRC) http://www.grc. nasa.gov/WWW/FOIA/ ReadingRm.htm;
    (5) (GSFC) http://genesis.gsfc .nasa.gov//foia /read-rm.htm;
    (6) (JSC) http://www.jsc. nasa.gov/pao/public/foia /edocs.html;
    (7) (KSC) http://www-foia.ksc. nasa.gov/foia /READROOM.HTM;
    (8) (LaRC) http://foia.larc.nasa .gov /readroom.html;
    (9) (MSFC) http://www1.msfc.nasa. gov/FOIA/docs /docs.html and
    (10) (SSC) http://www.ssc.nasa.gov/foia/reading/
    (c) In addition a requester may submit a FOIA request 
electronically. The addresses are as follows: (HQ) [email protected]; 
(ARC) foia@arc. nasa.gov; (DFRC) [email protected] .gov; (GRC) 
[email protected] .gov; (GSFC) [email protected]. gov; (JSC) [email protected] 
.gov; (KSC)[email protected]. gov; (LaRC) [email protected] .gov; (MSFC) 
[email protected]. gov and (SSC) [email protected]. gov; and for Inspector 
General records, [email protected]. gov.



Sec. 1206.402  Documents available for inspection at NASA Information Centers.

    (a) Each NASA Information Center will have available for inspection, 
as a minimum, a current version of the following documents:
    (1) 5 U.S.C. 552;
    (2) Title 14 CFR Chapter V, and Title 41 CFR Chapter 18, and 
material published in the Federal Register for codification but not yet 
included in the Code of Federal Regulations;
    (3) A master list and index of NASA Issuances, and a copy of all 
such issuances;
    (4) A list and index of the management issuances of the NASA Center 
at which the Information Center is located, and a copy of such 
issuances;
    (5) NASA's Scientific and Technical AeroSpace Reports and current 
indexes thereto;
    (6) Cumulative Index to Selected Speeches and News Releases issued 
by NASA Headquarters;
    (7) Index/Digest of Decisions, NASA Board of Contract Appeals;
    (8) Decisions of the NASA Contract Adjustment Board and a current 
index thereto;
    (9) Copies of Environmental Impact Statements filed by NASA under 
the National Environmental Policy Act of 1969;
    (10) Collection of all issues of ``NASA Activities'';
    (11) List of licenses granted under NASA-owned patents; and
    (12) A master list and an index of NASA Policy Directives, 
Guidelines, and Charters, and a copy of all such Directives, Guidelines, 
and Charters.
    (b) Because the indexes listed in paragraph (a) of this section are 
voluminous and because current versions thereof will be available for 
inspection at NASA Information Centers, from which copies of the indexes 
may be requested under Sec. 1206.603, it is determined and so ordered 
that publication of the indexes quarterly in the Federal Register would 
be unnecessary and impractical.

[[Page 58]]



Sec. 1206.403  Duty hours.

    The NASA Information Centers listed in Sec. 1206.401 shall be open 
to the public during all regular workdays, from 9 a.m. to 4 p.m.



                       Subpart 5--Responsibilities



Sec. 1206.500  Associate Deputy Administrator.

    Except as otherwise provided in Sec. 1206.504, the Associate Deputy 
Administrator or designee is responsible for the following:
    (a) Providing overall supervision and coordination of the 
implementation of the policies and procedures set forth in this Part 
1206;
    (b) After consultation with the General Counsel, making final 
determinations under Sec. 1206.607, within the time limits specified in 
Subpart 6 of this part;
    (c) Determining whether unusual circumstances exist under Sec. 
1206.608 as would justify the extension of the time limit for a final 
determination.



Sec. 1206.501  General Counsel.

    The General Counsel is responsible for the interpretation of 5 
U.S.C. 552 and of this part, and for the handling of litigation in 
connection with a request for an Agency record under this part.



Sec. 1206.502  Centers and Components.

    (a) Except as otherwise provided in Sec. 1206.504, the Director of 
each NASA Center or the Official-in-Charge of each Component, is 
responsible for the following:
    (1) After consultation with the Chief Counsel or the Counsel charged 
with providing legal advice to a Center or a Component Facility, making 
initial determinations under Sec. 1206.603 and Sec. 1206.604;
    (2) Determining whether unusual circumstances exist under Sec. 
1206.608 as would justify the extension of the time limit for an initial 
determination; and
    (3) In coordination with the Associate Deputy Administrator, 
ensuring that requests for records under the cognizance of his/her 
respective Center are processed and initial determinations made within 
the time limits specified in Subpart 6 of this part.
    (b) If so designated by the Director or Officials-in-Charge of the 
respective Center, the principal Public Affairs Officer at the Center 
may perform the functions set forth in paragraphs (a)(1) and (2) of this 
section.



Sec. 1206.503  NASA Headquarters.

    (a) Except as otherwise provided in Sec. 1206.504, the Associate 
Administrator for Public Affairs, is responsible for the following:
    (1) Preparing the annual reports required by Sec. 1206.900, 
including establishing reporting procedures throughout NASA to 
facilitate the preparation of such reports;
    (2) After consultation with the Office of General Counsel, making 
initial determinations under Sec. 1206.603 and Sec. 1206.604;
    (3) Determining whether unusual circumstances exist under Sec. 
1206.608 as would justify the extension of the time limit for an initial 
determination; and
    (4) In coordination with the Associate Deputy Administrator, 
ensuring that requests for Agency records under the cognizance of 
Headquarters are processed and initial determinations made within the 
time limits specified in Subpart 6 of this part.
    (b) The functions set forth in paragraphs (a)(1), (2) and (3) of 
this section may be delegated by the Associate Administrator for Public 
Affairs to a Public Affairs Officer or Specialist and to the Manager or 
his/her designee, NASA Management Office--JPL.



Sec. 1206.504  Inspector General.

    (a) The Inspector General or designee is responsible for making 
final determinations under Sec. 1206.607, within the time limits 
specified in Subpart 6 of this part, concerning audit inspection and 
investigative records originating in the Office of the Inspector General 
records from outside the Government related to an audit inspection or 
investigation, records prepared in response to a request from or 
addressed to the Office of the Inspector General, or other records 
originating within the Office of the Inspector General, after 
consultation with the General Counsel or designee on an appeal of an 
initial determination to the Inspector General.

[[Page 59]]

    (b) The Assistant Inspectors General or their designees are 
responsible for making initial determinations under Sec. 1206.603 and 
Sec. 1206.604 concerning audit inspection and investigative records 
originating in the Office of the Inspector General, records from outside 
the Government related to an audit inspection or investigation, records 
prepared in response to a request from or addressed to the Office of the 
Inspector General, or other records originating with the Office of the 
Inspector General, after consultation with the Attorney-Advisor to the 
Inspector General or designee.
    (c) The Inspector General or designee is responsible for ensuring 
that requests for Agency records as specified in paragraphs (a) and (b) 
of this section are processed and initial determinations are made within 
the time limits specified in Subpart 6 of this part.
    (d) The Inspector General or designee is responsible for determining 
whether unusual circumstances exist under Sec. 1206.608 that would 
justify extending the time limit for an initial or final determination, 
for records as specified in paragraphs (a) and (b) of this section.
    (e) Records as specified in paragraphs (a) and (b) of this section 
include any records located at Regional and field Inspector General 
Offices, as well as records located at the Headquarters Office of the 
Inspector General.



Sec. 1206.505  Delegation of authority.

    Authority necessary to carry out the responsibilities specified in 
this subpart is delegated from the Administrator to the officials named 
in this subpart.



                          Subpart 6--Procedures



Sec. 1206.600  Requests for records.

    A member of the public may request an Agency record by mail, 
facsimile (FAX), electronic-mail (e-mail), or in person from the FOIA 
Office having cognizance over the record requested or from the NASA 
Headquarters FOIA Office.



Sec. 1206.601  Mail, fax and e-mail requests.

    In view of the time limits under 5 U.S.C. 552(a)(6) for an initial 
determination on a request for an Agency record (see Sec. 1206.603), a 
request must meet the following requirements:
    (a) The request must be addressed to an appropriate NASA FOIA Office 
or otherwise be clearly identified in the letter as a request for an 
Agency record under the ``Freedom of Information Act.''
    (b) The request must identify the record requested or reasonably 
describe it in a manner that enables a professional NASA employee who is 
familiar with the subject area of the request to identify and locate the 
record with a reasonable amount of effort. NASA need not comply with a 
blanket or categorical request (such as ``all matters relating to'' a 
general subject) where it is not reasonably feasible to determine what 
is sought. NASA will in good faith endeavor to identify and locate the 
record sought and will consult with the requester when necessary and 
appropriate for that purpose. However, as provided in Sec. 1206.203, 
NASA will undertake no obligation to compile or create information or 
records not already in existence at the time of the request.
    (c) If a fee is chargeable under Subpart 7 of this part for search 
or duplication costs incurred in connection with a request for an Agency 
record, and the requester knows the amount of the fee at the time of the 
request, the request should be accompanied by a check or money order 
payable in that amount to the ``National Aeronautics and Space 
Administration.'' NASA cannot be responsible for cash sent by mail; 
stamps will not be accepted. If the amount of the fee chargeable is not 
known at the time of the request, the requester will be notified in the 
initial determination (or in a final determination in the case of an 
appeal) of the amount of the fee chargeable (see Sec. 1206.608(c)). For 
circumstances in which advance payment of fees is required, see Sec. 
1206.704.



Sec. 1206.602  Requests in person.

    (a) A member of the public may request an Agency record in person at 
a NASA FOIA Office (see Sec. 1206.401) during the duty hours of NASA 
Headquarters or the Center.

[[Page 60]]

    (b) A request at a FOIA Office must identify the record requested or 
reasonably describe it as provided in Sec. 1206.601(b).
    (c) If the record requested is located at the FOIA Office or 
otherwise readily obtainable, it shall be made available to the 
requester upon the payment of any fees that are chargeable (see Subpart 
7 of this part), which fees may be paid by a check or money order 
payable to the ``National Aeronautics and Space Administration''. If the 
record requested is not located at the FOIA Office or otherwise readily 
obtainable, the request will be docketed at the FOIA Office and 
processed in accordance with the procedures in Sec. 1206.603 and Sec. 
1206.604, with any fee chargeable being handled in accordance with Sec. 
1206.601(c).



Sec. 1206.603  Procedures and time limits for initial determinations.

    (a) Except as provided in Sec. 1206.608, an initial determination 
on a request for an Agency record, addressed in accordance with Sec. 
1206.601(a) or made in person at a NASA FOIA Office shall be made, and 
the requester shall be sent notification thereof, within 20 working days 
after receipt of the request, as required by 5 U.S.C. 552(a)(6).
    (b) An initial determination on a request for an Agency record by 
mail not addressed in accordance with Sec. 1206.601(a) shall be made, 
and the requester shall be sent notification thereof, within 20 working 
days after the correspondence is recognized as a request for an Agency 
record under the ``Freedom of Information Act'' and received by the 
appropriate NASA FOIA Office. With respect to such a request, unless an 
initial determination can reasonably be made within 20 working days of 
the original receipt, the request will be promptly acknowledged and the 
requester notified of the date the request was received at that FOIA 
Office and that an initial determination on the request will be made 
within 20 working days of that date.
    (c) If it is determined that the requested record (or portion 
thereof) will be made available, and if the charges are under $250, NASA 
will either send a copy of the releasable record and a bill for the fee 
or send the initial determination and a bill for the fee to the 
requester. In the latter case, the documents will be released when the 
fee is received. If the fee chargeable is over $250, a request for 
payment of the fee will always be sent with the initial determination, 
and the records will be mailed only upon receipt of payment. When 
records are sent before payment is received, the fact that interest will 
be charged from the 31st day after the day of the response shall be 
stated in the response. The date of the mailing of an initial 
determination, with or without the records(s), shall be deemed to 
satisfy the time limit for initial determinations.
    (d) Any notification of an initial determination that does not 
comply fully with the request for an Agency record, including those 
searches that produce no documents, shall include a statement of the 
reasons for the adverse determination, include the name and title of the 
person making the initial determination, and notify the requester of the 
right to appeal to the Administrator, or the Inspector General, as 
appropriate, under Sec. 1206.605.
    (e) If the requester demonstrates a ``compelling need'' as defined 
in Sec. 1206.101(r) for records, NASA shall provide expedited 
processing of the request. NASA will inform the requester as to whether 
the request for expedited processing has been granted within 10 working 
days after the date of the request.



Sec. 1206.604  Request for records that exist elsewhere.

    (a) If a request for an Agency record is received by a FOIA Office 
not having cognizance of the record (for example, when a request is 
submitted to one NASA Center or Headquarters and the requested record 
exists only at another NASA Center), the FOIA Office receiving the 
request shall promptly forward it to the NASA FOIA Office having 
cognizance of the record requested. That Center shall acknowledge the 
request and inform the requester that an initial determination on the 
request will be sent within 20 working days from the date of receipt by 
such Center.
    (b) If a request is received for Agency records which exist at two 
or more Centers, the FOIA Office receiving the

[[Page 61]]

request shall undertake to comply with the request, if feasible, or to 
forward the request (or portions thereof) promptly to a more appropriate 
Center for processing. The requester shall be kept informed of the 
actions taken to respond to the request.
    (c) If a request is received by a NASA FOIA Office for a record of 
another agency, the requester shall promptly be informed of that fact, 
and the request shall be returned to the requester, with advice as to 
where the request should be directed.



Sec. 1206.605  Appeals.

    (a) A member of the public who has requested an Agency record in 
accordance with Sec. 1206.601 or Sec. 1206.602, and who has received 
an initial determination which does not comply fully with the request, 
may appeal such an adverse initial determination to the Administrator, 
or, for records as specified in Sec. 1206.504, to the Inspector General 
under the procedures of this section.
    (b) The Appeal must:
    (1) Be in writing;
    (2) Be addressed to the Administrator, NASA Headquarters, 
Washington, DC 20546, or, for records as specified in Sec. 1206.504, to 
the Inspector General, NASA Headquarters, Washington, DC 20546;
    (3) Be identified clearly on the envelope and in the letter as an 
``Appeal under the Freedom of Information Act'';
    (4) Include a copy of the request for the Agency record and a copy 
of the adverse initial determination;
    (5) To the extent possible, state the reasons why the requester 
believes the adverse initial determination should be reversed; and
    (6) Be sent to the Administrator or the Inspector General, as 
appropriate, within 30 calendar days of the date of receipt of the 
initial determination.
    (c) An official authorized to make a final determination may waive 
any of the requirements of paragraph (b) of this section, in which case 
the time limit for the final determination (see Sec. 1206.607(a)) shall 
run from the date of such waiver.



Sec. 1206.606  Request for additional records.

    If, upon receipt of a record (or portions thereof) following an 
initial determination to comply with a request, the requester believes 
that the materials received do not comply with the request, the 
requester may elect either to request additional records under the 
procedures of Sec. 1206.601 or Sec. 1206.602, or to file an appeal 
under the procedures of Sec. 1206.605, in which case the appeal must be 
sent to the Administrator, or to the Inspector General, in the case of 
records as specified in Sec. 1206.504, within 30 days of receipt of the 
record (or portions thereof), unless good cause is shown for any 
additional delay.



Sec. 1206.607  Actions on appeals.

    (a) Except as provided in Sec. 1206.608, the Administrator or 
designee, or in the case of records as specified in Sec. 1206.504, the 
Inspector General or designee, shall make a final determination on an 
appeal and notify the requester thereof, within 20 working days after 
the receipt of the appeal.
    (b) If the final determination reverses in whole or in part the 
initial determination, the record requested (or portions thereof) shall 
be made available promptly to the requester, as provided in the final 
determination.
    (c) If the final determination sustains in whole or in part an 
adverse initial determination, the notification of the final 
determination shall:
    (1) Explain the basis on which the record (or portions thereof) will 
not be made available;
    (2) Include the name and title of the person making the final 
determination;
    (3) Include a statement that the final determination is subject to 
judicial review under 5 U.S.C. 552(a)(4); and
    (4) Enclose a copy of 5 U.S.C. 552(a)(4).



Sec. 1206.608  Time extensions in unusual circumstances.

    (a) In ``unusual circumstances'' as that term is defined in Sec. 
1206.101(f), the time limits for an initial determination (see Sec. 
1206.603 and Sec. 1206.604) and for a final determination (see Sec. 
1206.607) may be extended, but not to exceed a

[[Page 62]]

total of 10 working days in the aggregate in the processing of any 
specific request for an Agency record.
    (b) If an extension of time under this section would be required, 
the requester shall be promptly notified of the reasons therefor and the 
date when a determination will be sent.
    (c) If a record described in a request cannot be located within the 
20-working-day time limit for an initial determination, after 
consultation with a professional NASA employee who is familiar with the 
subject area of the request, that fact normally will justify an initial 
determination that the record requested cannot be identified or located, 
rather than a decision that an extension of time under this section 
would be appropriate.
    (d) In exceptional circumstances, if it would be impossible to 
complete a search for or review of Agency records within the 20-working-
day period for an initial determination, an official authorized to make 
an initial determination or the designee may seek an extension of time 
from the requester. If such an extension of time can be agreed upon, 
that fact should be clearly documented and the initial determination 
made within the extended time period; if not, an initial determination 
that the record cannot be identified or located, or reviewed, within the 
20-working-day time limit shall be made under Sec. 1206.603. 
``Exceptional circumstances'' do not include a delay that results from a 
predictable Agency workload of requests unless the Agency demonstrates 
reasonable progress in reducing its backlog of pending requests. Refusal 
by the requester to reasonably modify the scope of a request or arrange 
an alternative time frame for processing the request shall be considered 
as a factor in determining whether exceptional circumstances exist.



Sec. 1206.609  Litigation.

    In any instance in which a requester brings suit concerning a 
request for an Agency record under this part, the matter shall promptly 
be referred to the General Counsel together with a report on the details 
and status of the request. In such a case, if a final determination with 
respect to the request has not been made, such a determination shall be 
made as soon as possible, under procedures prescribed by the General 
Counsel in each case.



Sec. 1206.610  Notice to submitters of commercial information.

    (a) General policy. Upon receipt of a request for commercial 
information pursuant to the Freedom of Information Act, NASA shall 
provide the submitter with notice of the request in accordance with the 
requirements of this section.
    (b) Notice to submitters. Except as provided in paragraph (g) or (h) 
of this section, the Agency shall make a good faith effort to provide a 
submitter with prompt notice of a request appearing to encompass its 
commercial information whenever required under paragraph (c) of this 
section. Such notice shall identify the commercial information requested 
and shall inform the submitter of the opportunity to object to its 
disclosure in accordance with paragraph (d) of this section. If the 
submitter would not otherwise have access to the document that contains 
the information, upon the request of the submitter, the Agency shall 
provide access to, or copies of, the records or portions thereof 
containing the commercial information. This notice shall be provided in 
writing upon the request of the submitter. Whenever the Agency provides 
notice pursuant to this section, the Agency shall advise the requester 
that notice and opportunity to comment are being provided to the 
submitter.
    (c) When notice is required. Notice shall be given to a submitter 
whenever the information has been designated by the submitter as 
information deemed protected from disclosure under Exemption 4 of the 
Act, or the Agency otherwise has reason to believe that the information 
may be protected from disclosure under Exemption 4.
    (d) Opportunity to object to disclosure. Through the notice 
described in paragraph (b) of this section, the Agency shall afford a 
submitter a reasonable period within which to provide the Agency with a 
detailed statement of any objection to disclosure. This period shall not 
exceed 10 working days from the date after which the Agency can

[[Page 63]]

reasonably assume receipt of notice by the submitter, unless the 
submitter provides a reasonable explanation justifying additional time 
to respond. If the Agency does not receive a response from the submitter 
within this period, the Agency shall proceed with its review of the 
information and initial determination. The submitter's response shall 
include all bases, factual or legal, for withholding any of the 
information pursuant to Exemption 4. Information provided by a submitter 
pursuant to this paragraph may itself be subject to disclosure under the 
FOIA. Submitters will not be provided additional opportunities to object 
to disclosure, and, therefore, should provide a complete explanation of 
any and all bases for withholding any information from disclosure.
    (e) Notice of intent to disclose. The Agency shall carefully 
consider any objections of the submitter in the course of determining 
whether to disclose commercial information. Whenever the Agency decides 
to disclose commercial information over the objection of a submitter, 
the Agency shall forward to the submitter a written statement which 
shall include the following:
    (1) A brief explanation as to why the Agency did not agree with any 
objections;
    (2) A description of the commercial information to be disclosed, 
sufficient to identify the information to the submitter; and
    (3) A date after which disclosure is expected. Such notice of intent 
to disclose shall be forwarded to the submitter in a reasonable number 
of working days prior to the expected disclosure date.
    (f) Notice of FOIA lawsuit. Whenever a requester brings suit seeking 
to compel disclosure of commercial information covered by paragraph (c) 
of this section, the Agency shall promptly notify the submitter. 
Whenever a submitter brings suit against the Agency in order to prevent 
disclosure of commercial information, the Agency shall promptly notify 
the requester.
    (g) Exceptions to notice requirements. The notice requirements of 
this section do not apply if--
    (1) The information has been published or otherwise made available 
to the public.
    (2) Disclosure of the information is required by law (other than 5 
U.S.C. 552);
    (3) The submitter has received notice of a previous FOIA request 
which encompassed information requested in the later request, and the 
Agency intends to withhold and/or release information in the same manner 
as in the previous FOIA request;
    (4) Upon submitting the information or within a reasonable period 
thereafter,
    (i) The submitter reviewed its information in anticipation of future 
requests pursuant to the FOIA,
    (ii) Provided the Agency a statement of its objections to disclosure 
consistent with that described in paragraph (e) of this section, and
    (iii) The Agency intends to release information consistent with the 
submitter's objections;
    (5) Notice to the submitter may disclose information exempt from 
disclosure pursuant to 5 U.S.C. 552(b)(7).
    (h)(1) An additional limited exception to the notice requirements of 
this section, to be used only when all of the following exceptional 
circumstances are found to be present, authorizes the Agency to withhold 
information which is the subject of a FOIA request, based on Exemption 4 
(5 U.S.C. 552(b)(4)), without providing the submitter individual notice:
    (i) The Agency would be required to provide notice to over 10 
submitters, in which case, notification may be accomplished by posting 
or publishing the notice in a place reasonably calculated to accomplish 
notification.
    (ii) Absent any response to the published notice, the Agency 
determines that if it provided notice as is otherwise required by 
paragraph (c) of this section, it is reasonable to assume that the 
submitter would object to disclosure of the information based on 
Exemption 4; and,
    (iii) If the submitter expressed the anticipated objections, the 
Agency would uphold those objections.
    (2) This exemption shall be used only with the approval of the Chief 
Counsel of the Center, the Attorney-Advisor to

[[Page 64]]

the Inspector General, or the Associate General Counsel responsible for 
providing advice on the request. This exception shall not be used for a 
class of documents or requests, but only as warranted by an individual 
FOIA request.

[64 FR 39404, July 22, 1999, as amended at 65 FR 19647, Apr. 12, 2000]



             Subpart 7--Search, Review, and Duplication Fees



Sec. 1206.700  Schedule of fees.

    The fees specified in this section shall be charged for searching 
for, reviewing, and/or duplicating Agency records made available in 
response to a request under this part.
    (a) Copies. For copies of documents such as letters, memoranda, 
statements, reports, contracts, etc., $0.10 per copy of each page. For 
copies of oversize documents, such as maps, charts, etc., $0.15 for each 
reproduced copy per square foot. These charges for copies include the 
time spent in duplicating the documents. For copies of computer disks, 
still photographs, blueprints, videotapes, engineering drawings, hard 
copies of aperture cards, etc., the fee charged will reflect the full 
direct cost to NASA of reproducing or copying the record.
    (b) Clerical searches. For each one-quarter hour spent by clerical 
personnel in searching for an Agency record in response to a request 
under this part, $3.75.
    (c) Nonroutine, nonclerical searches. When a search cannot be 
performed by clerical personnel; for example, when the task of 
determining which records fall within a request and collecting them 
requires the time of professional or managerial personnel, and when the 
amount of time that must be expended in the search and collection of the 
requested records by such higher level personnel is substantial, charges 
for the search may be made at a rate in excess of the clerical rate, 
namely for each one-quarter hour spent by such higher level personnel in 
searching for a requested record, $7.50.
    (d) Review of records. For commercial use requests only, when time 
is spent reviewing to determine whether they are exempt from mandatory 
disclosure, a charge may be made at the rate for each one-quarter hour 
spent by an attorney, $11.25. No charge shall be made for the time spent 
in resolving general legal or policy issues regarding the application of 
exemptions. This charge will only be assessed the first time NASA 
reviews a record and not at the administrative appeal level.
    (e) Computerized records. Because of the diversity in the types and 
configurations of computers which may be required in responding to 
requests for Agency records maintained in whole or in part in 
computerized form, it is not feasible to establish a uniform schedule of 
fees for search and printout of such records. In most instances, records 
maintained in computer data banks are available also in printed form and 
the standard fees specified in paragraph (a) of this section shall 
apply. If the request for an Agency record required to be made available 
under this part requires a computerized search or printout, the charge 
for the time of personnel involved shall be at the rates specified in 
paragraphs (b) and (c) of this section. The charge for the computer time 
involved and for any special supplies or materials used shall not exceed 
the direct cost to NASA. This charge may be as high as $125.00 per 
quarter hour. Before any computer search or printout is undertaken in 
response to a request for an Agency record, the requester shall be 
notified of the applicable unit costs involved and the total estimated 
cost of the search and/or printout.
    (f) Other search and duplication costs. Reasonable standard fees, 
other than as specified in paragraphs (a) through (e) of this section, 
may be charged for additional direct costs incurred in searching for or 
duplicating an Agency record in response to a request under this part. 
Charges which may be made under this paragraph include, but are not 
limited to, the transportation of NASA personnel to places of record 
storage for search purposes or freight charges for transporting records 
to the personnel searching for or duplicating a requested record.
    (g) Charges for special services. Complying with requests for 
special services such as those listed in (g)(1), (2),

[[Page 65]]

and (3) of this section is entirely at the discretion of NASA. Neither 
the FOIA nor its fee structure cover these kinds of services. To the 
extent that NASA elects to provide the following services, it will levy 
a charge equivalent to the full cost of the service provided:
    (1) Certifying that records are true copies.
    (2) Sending records by special methods such as express mail.
    (3) Packaging and mailing bulky records that will not fit into the 
largest envelope carried in the supply inventory.
    (h) Unsuccessful or unproductive searches. Search charges, as set 
forth in paragraphs (b) and (c) of this section, may be made even when 
an Agency record which has been requested cannot be identified or 
located after a diligent search and consultation with a professional 
NASA employee familiar with the subject area of the request, or if 
located, cannot be made available under Subpart 3 of this part. 
Ordinarily, however, fees will not be charged in such instances unless 
they are substantial (over $50.00) and the requester has consented to 
the search after having been advised that it cannot be determined in 
advance whether any records exist which can be made available (see Sec. 
1201206.704) and that search fees will be charged even if no record can 
be located and made available.
    (i) Fees not chargeable.
    (1) NASA will not charge for the first 100 pages of duplication and 
the first 2 hours of search time either manual or electronic except to 
requesters seeking documents for commercial use.
    (2) If the cost to be billed to the requester is equal to or less 
than $15.00, no charges will be billed.
    (j) Records will be provided in a form or format specified by the 
requester if they are readily reproducible in such format with 
reasonable efforts. If the records are not readily reproducible in the 
requested form or format, the Agency will so inform the requester. The 
requester may specify an alternative form or format that is available. 
If the requester refuses to specify an alternative form or format, the 
Agency will not process the request further.



Sec. 1206.701  Categories of requesters.

    There are four categories of FOIA requesters: Commercial use 
requesters; educational and noncommercial scientific institutions; 
representatives of the news media; and all other requesters. The Act 
prescribes specific levels of fees for each of these categories:
    (a) Commercial use requesters. When NASA receives a request for 
documents appearing to be for commercial use, it will assess charges 
which recover the full direct costs of searching for, reviewing for 
release, and duplicating the records sought. Requesters must reasonably 
describe the records sought. Moreover, in the case of such a request, 
NASA will not consider a request for waiver or reduction of fees based 
upon an assertion that disclosure would be in the public interest. 
Commercial use requesters are not entitled to 2 hours of free search 
time or to 100 free pages of reproduction of documents.
    (b) Education and noncommercial scientific institution requesters. 
NASA shall provide documents to requesters in this category for the cost 
of reproduction alone, excluding charges for the first 100 pages. To be 
eligible for inclusion in this category, requesters must show that the 
request being made is authorized by and under the auspices of a 
qualifying institution and that the records are not being sought for a 
commercial use, but are being sought in furtherance of scholarly (if the 
request is from an educational institution) or scientific (if the 
request is from a noncommercial scientific institution) research. 
Requesters must reasonably describe the records sought.
    (c) Requesters who are representatives of the news media. NASA shall 
provide documents to requesters in this category for the cost of 
reproduction alone, excluding charges for the first 100 pages. To be 
eligible for inclusion in this category, a requester must demonstrate 
that he/she meets the criteria in Sec. 1206.101(o) of this part, and 
his/her request must not be made for a commercial use. Requesters must 
reasonably describe the records sought.
    (d) All other requesters. NASA shall charge requesters who do not 
fit into any of the categories mentioned in this section, fees which 
recover the full direct reasonable cost of searching for

[[Page 66]]

and reproducing records that are responsive to the request, except that 
the first 100 pages of reproduction and the first 2 hours of search time 
shall be furnished without charge. Moreover, requests from individuals 
for records about themselves located in NASA's systems of records will 
continue to be processed under the fee provisions of the Privacy Act of 
1974, which permits fees only for reproduction. Requesters must 
reasonably describe the records sought.



Sec. 1206.702  Waiver or reduction of fees.

    The burden is always on the requester to provide the evidence to 
qualify him/her for a fee waiver or reduction.
    (a) NASA shall furnish documents without charge or at reduced 
charges in accordance with 5 U.S.C. 552(a)(4)(A)(iii), provided that:
    (1) Disclosure of the information is in the public interest because 
it is likely to contribute significantly to public understanding of the 
operations or activities of the government and
    (2) It is not primarily in the commercial interest of the requester.
    (b) Where these two statutory requirements are satisfied, based upon 
information supplied by the requester or otherwise made known to NASA, 
the FOIA fee shall be waived or reduced. Where one or both of these 
requirements is not satisfied, a fee waiver or reduction is not 
warranted under the statute.
    (c) In determining whether disclosure is in the public interest 
because it is likely to contribute significantly to public understanding 
of the operations or activities of the government, the following 
considerations shall be applied:
    (1) Whether the subject of the requested records concerns ``the 
operations or activities of the government'';
    (2) Whether the disclosure is ``likely to contribute'' to an 
understanding of government operations or activities;
    (3) Whether disclosure of the requested information will contribute 
to ``public understanding''; and
    (4) Whether the disclosure is likely to contribute ``significantly'' 
to public understanding of government operations or activities.
    (d) In determining whether disclosure of the information ``is not 
primarily in the commercial interest of the requester,'' the following 
consideration shall be applied:
    (1) Whether the requester has a commercial interest that would be 
furthered by the requested disclosure; and if so,
    (2) Whether the magnitude of the identified commercial interest of 
the requester is sufficiently large, in comparison with the public 
interest in disclosure, that disclosure is ``primarily in the commercial 
interest of the requester.''



Sec. 1206.703  Aggregation of requests.

    A requester may not file multiple requests at the same time, each 
seeking portions of a document or documents, solely in order to avoid 
payment of fees. When NASA has reason to believe that a requester or a 
group of requesters acting in concert, is attempting to break a request 
down into a series of requests for the purpose of evading the assessment 
of fees, NASA will aggregate any such requests and charge accordingly. 
NASA will consider that multiple requests made within a 30-day period 
were so intended, unless there is evidence to the contrary. Where the 
relevant time period exceeds 30 days, NASA will not assume such a motive 
unless there is evidence to the contrary. In no case will NASA aggregate 
multiple requests on unrelated subjects from one requester.



Sec. 1206.704  Advance payments.

    (a) NASA will not require a requester to make an advance payment, 
i.e., payment before work is commenced or continued on a request, 
unless:
    (1) NASA estimates or determines that the allowable charges are 
likely to exceed $250. NASA will notify the requester of the likely cost 
and obtain satisfactory assurance of full payment where the requester 
has a history of prompt payment of FOIA fees, or require an advance 
payment of an amount up to the full estimated charges in the case of 
requesters with no history of payment; or

[[Page 67]]

    (2) A requester has previously failed to pay a fee in a timely 
fashion (within 30 days of billing), then NASA may require the requester 
to pay the full amount owed plus any applicable interest as provided 
below (see Sec. 1206.706(a)), or demonstrate that he/she has, in fact, 
paid the fee, and to make an advance payment of the full amount of the 
estimated fee before the Agency begins to process a new request or a 
pending request from that requester.
    (b) When NASA acts under paragraphs (a)(1) and (2) of this section, 
the administrative time limits will begin only after NASA has received 
the fee payments described in paragraph (a) of this section.



Sec. 1206.705  Form of payment.

    Payment shall be made by check or money order payable to the 
``National Aeronautics and Space Administration'' and sent per 
instructions in the initial determination.



Sec. 1206.706  Nonpayment of fees.

    (a) Interest to be charged. Requesters are advised that should they 
fail to pay the fees assessed, they may be charged interest on the 
amount billed starting on the 31st day following the day on which the 
billing was sent. Interest will be at the rate prescribed in section 
3717 of Title 31 U.S.C.
    (b) Applicability of Debt Collection Act of 1982 (Pub. L. 97-365). 
Requesters are advised that if full payment is not received within 60 
days after the billing was sent, the procedures of the Debt Collection 
Act may be invoked (14 CFR 1261.407-1261.409). These procedures include 
three written demand letters at not more than 30-day intervals, 
disclosure to a consumer reporting agency, and the use of a collection 
agency, where appropriate.



           Subpart 8--Failure to Release Records to the Public



Sec. 1206.800  Failure to release records to the public.

    (a) Except to the extent that a person has actual and timely notice 
of the terms thereof, a person may not in any manner be required to 
resort to, or be adversely affected by, a matter required to be 
published in the Federal Register under Sec. 1206.200(a) and not so 
published.
    (b) A final order, opinion, statement of policy, interpretation, or 
staff manual or instruction that affects a member of the public may be 
relied upon, used, or cited as precedent by NASA against any member of 
the public only if it has been indexed and either made available or 
published as provided by Sec. 1206.200(b) or if the member of the 
public has actual and timely notice of the terms thereof.
    (c) Failure to make available an Agency record required to be made 
available under this part could provide the jurisdictional basis for a 
suit against NASA under 5 U.S.C. 552(a)(4) (B) through (G), which 
provides as follows:

    (B) On complaint, the District Court of the United States in the 
district in which the complainant resides, or has his principal place of 
business, or in which the Agency records are situated, or in the 
District of Columbia, has jurisdiction to enjoin the Agency from 
withholding Agency records and to order the production of any Agency 
records improperly withheld from the complainant. In such a case the 
court shall determine the matter de novo, and may examine the contents 
of such Agency records in camera to determine whether such records or 
any part thereof shall be withheld under any of the exemptions set forth 
in subsection (b) of this section, and the burden is on the Agency to 
sustain its action.
    (C) Notwithstanding any other provision of law, the defendant shall 
serve an answer or otherwise plead to any complaint made under this 
subsection within 30 days after service upon the defendant of the 
pleading in which such complaint is made, unless the court otherwise 
directs for good cause shown.
    [(D) Repealed. Pub. L. 98-620, Title IV, 402(2), Nov. 8, 1984, 98 
Stat. 3335, 3375.]
    (E) The court may assess against the United States reasonable 
attorney fees and other litigation costs reasonably incurred in any case 
under this section in which the complainant has substantially prevailed.
    (F) Whenever the court orders the production of any Agency records 
improperly withheld from the complainant and assesses against the United 
States reasonable attorney fees and other litigation costs, and the 
court additionally issues a written finding that the circumstances 
surrounding the withholding raise questions whether Agency personnel 
acted arbitrarily or capriciously with respect to the withholding, the 
Special Counsel shall promptly initiate a proceeding to determine 
whether disciplinary action is

[[Page 68]]

warranted against the officer or employee who was primarily responsible 
for the withholding. The Special Counsel, after investigation and 
consideration of the evidence submitted, shall submit his findings and 
recommendations to the administrative authority of the Agency concerned 
and shall send copies of the findings and recommendations to the officer 
or employee or his representative. The administrative authority shall 
take the corrective action that the Special Counsel recommends.
    (G) In the event of noncompliance with the order of the court, the 
district court may punish for contempt the responsible employee, and in 
the case of a uniformed service, the responsible member.



                        Subpart 9--Annual Report



Sec. 1206.900  Requirements for annual report.

    On or before February 1 of each year, NASA shall submit a report 
covering the preceding fiscal year to the Department of Justice.



PART 1207--STANDARDS OF CONDUCT--Table of Contents




                      Subpart A--General Provisions

Sec.
1207.101 Cross-references to ethical conduct, financial disclosure, and 
          other applicable regulations.
1207.102 Waiver of prohibition in 18 U.S.C. 208.
1207.103 Designations of responsible officials.

                 Subpart B--Post-Employment Regulations

1207.201 Scope of subpart.
1207.202 Exemption for scientific and technological communications.

    Authority: 5 U.S.C. 7301; 18 U.S.C. 207-208; 42 U.S.C. 2473(c)(1); 5 
CFR 2635.102(b); 5 CFR part 2637; 5 CFR part 2640.

    Source: 52 FR 22755, June 16, 1987, unless otherwise noted.



                      Subpart A--General Provisions



Sec. 1207.101  Cross-references to ethical conduct, financial disclosure, and other applicable regulations.

    Employees of the National Aeronautics and Space Administration 
(NASA) should refer to the executive branch-wide Standards of Ethnical 
Conduct at 5 CFR part 2635, the NASA regulation at 5 CFR part 6901 which 
supplements the executive branch-wide standards with respect to 
prohibitions and prior approval requirements applicable to certain 
outside employment activities, the Office of Personnel Management 
provisions on employee responsibilities and conduct at 5 CFR part 735, 
and the executive branch-wide financial disclosure regulation at 5 CFR 
part 2634.

[59 FR 49338, Sept. 28, 1994]



Sec. 1207.102  Waiver of prohibition in 18 U.S.C. 208.

    (a) Prohibition. Employees are prohibited by criminal statute, 18 
U.S.C. 208(a), from participating personally and substantially in an 
official capacity in any particular matter in which, to their knowledge, 
they, or any person whose interests are imputed to them under the 
statute, have a financial interest, if the particular matter will have a 
direct and predictable effect on that interest.
    (b) Specific waiver available. A NASA employee may request a waiver 
of this prohibition. NASA may grant a specific waiver of the prohibition 
only if the Agency determines that the employee's financial interest is 
not so substantial as to be deemed likely to affect the integrity of the 
employee's services. The waiver must be obtained before the employee 
participates in the matter.
    (c) Officials authorized to make waiver determinations. (1) For the 
employees listed below, waivers must be approved by the Administrator or 
Deputy Administrator. No further delegation is authorized.
    (i) Employees who are required by 5 CFR 2634.202 to file Public 
Financial Disclosure Reports;
    (ii) Employees who are appointed under authority of section 
203(c)(2) (``NASA Excepted Positions'') or section 203(c)(10) (``Alien 
Scientists'') of the National Aeronautics and Space Act of 1958, as 
amended (42 U.S.C. 2473(c)(2) and 2473(c)(10));
    (iii) Astronauts and astronaut candidates;
    (iv) Chief Counsel; and
    (v) Procurement Officers.
    (2) For all other Headquarters employees, the Associate 
Administrator

[[Page 69]]

for Headquarters Operations may approve waivers of 18 U.S.C. 208. This 
authority may not be redelegated.
    (3) For all other Center employees, the Center Director or Deputy 
Center Director may approve waivers of 18 U.S.C. 208. This authority may 
not be redelegated.
    (d) Procedures for specific waiver. The employee's request for a 
waiver must be in writing. The request must describe the particular 
matter involved, the relevant duties of the employee, and the exact 
nature and amount of the disqualifying financial interest.
    (1) Headquarters employees. (i) Those Headquarters employees 
described in paragraph (c)(1) of this section must submit their requests 
to the Official-in-Charge of the Headquarters office in which they are 
employed and to the General Counsel for concurrence. The Official-in-
Charge will then submit the request to the Administrator with 
recommendations on the proposed waiver.
    (ii) Other Headquarters employees must submit their requests to the 
Associate General Counsel (General) for concurrence, and to the 
Associate Administrator for Headquarters Operations for approval.
    (2) Center employees. (i) Those Center employees described in 
paragraph (c)(1) of this section must submit their requests to the 
Center Chief Counsel for concurrence and then to the Director of the 
Center where they are employed. The Center Director will provide the 
request, with recommendations, to the appropriate Enterprise Associate 
Administrator and to the General Counsel for review and submission to 
the Administrator.
    (ii) Other Center employees must submit their requests to the Center 
Chief Counsel for concurrence, and then to their Center Director or 
Deputy Center Director for approval.
    (3) Copies of approved waivers must be forwarded to the Associate 
Administrator for Human Resources and Education, the General Counsel, 
and the Office of Government Ethics.
    (e) Cross-references. For regulations concerning general waiver 
guidance and exemptions under 18 U.S.C. 208, see 5 CFR part 2640.

[66 FR 59137, Nov. 27, 2001]



Sec. 1207.103  Designations of responsible officials.

    (a) Designated Agency Ethics Official. The General Counsel of NASA 
is the Designated Agency Ethics Official and is delegated the authority 
to coordinate and manage NASA's ethics program as set forth in 5 CFR 
2638.203.
    (b) Alternate Designated Agency Ethics Official. The Associate 
General Counsel (General) is the Alternate Designated Agency Ethics 
Official.
    (c) Deputy Ethics Officials. The following officials are designated 
as Deputy Ethics Officials:
    (1) The Deputy General Counsel;
    (2) The Associate General Counsel (General);
    (3) The Senior Ethics Attorney assigned to the Associate General 
Counsel (General); and
    (4) The Chief Counsel at each NASA Center and Component Facility.
    (d) Agency Designee. As used in 5 CFR part 2635, the term ``Agency 
Designee'' refers to the following:
    (1) For employees at NASA Headquarters, or for matters affecting 
employees Agencywide, the Associate Deputy Administrator, the Designated 
Agency Ethics Official, the Alternate Designated Agency Ethics Official, 
or the Chief of Staff; and
    (2) For Center employees, the Center Director, who may delegate 
specific responsibilities of the Agency Designee to the Center Chief 
Counsel or to another official who reports directly to the Center 
Director.
    (e) Cross-references. For regulations on the appointment, 
responsibilities, and authority of the Designated Agency Ethics 
Official, Alternate Designated Agency Ethics Official, and Deputy Ethics 
Officials, see 5 CFR part 2638. For the responsibilities of the Agency 
Designee, see 5 CFR part 2635.

[66 FR 59138, Nov. 27, 2001]



                 Subpart B--Post-Employment Regulations

    Source: 54 FR 4003, Jan. 27, 1989; 55 FR 9250, Mar. 12, 1990, unless 
otherwise noted. Redesignated at 59 FR 49338, Sept. 28, 1994.

[[Page 70]]



Sec. 1207.201  Scope of subpart.

    This subpart provides guidance to former NASA government employees 
who are subject to the restrictions of Title V of the Ethics of 
Government Act of 1978, as amended, and who want to communicate 
scientific or technical information to NASA.



Sec. 1207.202  Exemption for scientific and technological communications.

    (a) Whenever a former government employee who is subject to the 
constraints of post-employment conflict of interest, 18 U.S.C. 207, 
wishes to communicate with NASA under the exemption in section 207(j)(5) 
for the making of a communication solely for the purpose of furnishing 
scientific or technological information, he or she shall state to the 
NASA employee contracted, the following information:
    (1) That he or she is a former government employee subject to the 
post employment restrictions of 18 U.S.C. 207 (a), (c), or (d)--specify 
which;
    (2) That he or she worked on certain NASA programs--enumerate which; 
and
    (3) That the communication is solely for the purpose of furnishing 
scientific or technological information.
    (b) If the former government employee has questions as to whether 
the communication comes within the scientific and technological 
exemption, he or she should contact the General Counsel, the designated 
agency ethics official.

[54 FR 4003, Jan. 27, 1989; 55 FR 9250, Mar. 12, 1990. Redesignated and 
amended at 59 FR 49338, Sept. 28, 1994]



PART 1208--UNIFORM RELOCATION ASSISTANCE AND REAL PROPERTY ACQUISITION FOR FEDERAL AND FEDERALLY ASSISTED PROGRAMS--Table of Contents




    Authority: Sec. 213, Uniform Relocation Assistance and Real Property 
Acquisition Policies Act of 1970, Pub. L. 91-646, 84 Stat. 1894 (42 
U.S.C. 4601) as amended by the Surface Transportation and Uniform 
Relocation Assistance Act of 1987, Title IV of Pub. L. 100-17, 101 Stat. 
246-256 (42 U.S.C. 4601 note).

    Editorial Note: For additional information, see related documents 
published at 50 FR 8953, March 5, 1985, 52 FR 18768, May 19, 1987, and 
52 FR 45667, December 1, 1987.



Sec. 1208.1  Uniform Relocation Assistance and Real Property Acquisition.

    Regulations and procedures for complying with the Uniform Relocation 
Assistance and Real Property Acquisition Policies Act of 1970 (Pub. L. 
91-646, 84 Stat. 1894, 42 U.S.C. 4601), as amended by the Surface 
Transportation and Uniform Relocation Assistance Act of 1987 (Title IV 
of Pub. L. 100-17, 101 Stat. 246-255, 42 U.S.C. 4601 note) are set forth 
in 24 CFR part 24.

[52 FR 48017, Dec. 17, 1987 and 54 FR 8912, Mar. 2, 1989]



PART 1209--BOARDS AND COMMITTEES--Table of Contents




Subparts 1-2 [Reserved]

                  Subpart 3--Contract Adjustment Board

Sec.
1209.300 Scope.
1209.301 Authority.
1209.302 Establishment of Board.
1209.303 Functions of Board.
1209.304 Membership.
1209.305 Legal advice and assistance.

              Subpart 4--Inventions and Contributions Board

1209.400 Scope.
1209.401 Establishment.
1209.402 Responsibilities.
1209.403 Organizational location.
1209.404 Membership.
1209.405 Supporting services.

Subparts 1-2 [Reserved]



                  Subpart 3--Contract Adjustment Board

    Authority: Pub. L. 85-804 and 42 U.S.C. 2473(c)(1).

    Source: 51 FR 28924, Aug. 13, 1986, unless otherwise noted.



Sec. 1209.300  Scope.

    This subpart continues in effect the Contract Adjustment Board 
(hereinafter referred to as ``the Board'') to consider and dispose of 
requests for extraordinary contractual adjustments

[[Page 71]]

by contractors of the National Aeronautics and Space Administration 
(hereinafter referred to as NASA).



Sec. 1209.301  Authority.

    (a) The Act of August 28, 1958 (50 U.S.C. 1431-35) (hereinafter 
referred to as ``the Act''), empowers the President to authorize 
departments and agencies exercising functions in connection with the 
national defense to enter into contracts or into amendments or 
modifications of contracts and to make advance payments, without regard 
to other provisions of law relating to the making, performance, 
amendment, or modification of contracts, whenever the President deems 
that such action would facilitate the national defense.
    (b) Executive Order No. 10789, dated November 14, 1958 (23 FR 8897), 
authorizes the Administrator, NASA, to exercise the authority conferred 
by the Act and to prescribe regulations for the carrying out of such 
authority.
    (c) Federal Acquisition Regulation (FAR), part 50, April 1, 1985, 
and NASA/FAR Supplement 84-2, part 18-50, October 19, 1984, establishes 
standards and procedures for the disposition of requests for 
extraordinary contractual adjustments by NASA contractors.



Sec. 1209.302  Establishment of Board.

    The Board was established on May 15, 1961, and is continued in 
effect by NASA Management Instruction (NMI) 1152.5 and this regulation.



Sec. 1209.303  Functions of Board.

    (a) The Board is authorized to act for and exercise the authority of 
the Administrator in cases involving request by NASA contractors for 
extraordinary contractual adjustments under the Act. Such authority will 
be exercised in accordance with the standards and procedures established 
by the Administrator, subject to such limitations as the Administrator 
may prescribe.
    (b) The Board shall have the power to approve, authorize or direct 
any action, including the modification or release of any obligations, 
and to make determinations and findings which are necessary or 
appropriate for the conduct of its functions, and may adopt such rules 
of procedure as it considers desirable.
    (c) The concurring vote of a majority of the total Board membership 
shall constitute an action of the Board. Decisions of the Board shall be 
final but the Board may reconsider and modify, correct or reverse any 
Board decision previously made.



Sec. 1209.304  Membership.

    The Board will consist of a chairperson and four other members, all 
of whom shall be appointed by the Administrator.



Sec. 1209.305  Legal advice and assistance.

    The General Counsel of NASA shall provide the Board with all 
necessary advice and assistance.



              Subpart 4--Inventions and Contributions Board

    Authority: 42 U.S.C. 2457(f) and 2458.

    Source: 51 FR 3945, Jan. 31, 1986, unless otherwise noted.



Sec. 1209.400  Scope.

    This subpart describes the functions, authority, and membership of 
the NASA Inventions and Contributions Board (hereafter referred to as 
``the Board'').



Sec. 1209.401  Establishment.

    Pursuant to the authority of the National Aeronautics and Space Act 
of 1958 as amended (42 U.S.C. 2457(f) and 2458) and the Government 
Employees Incentive Awards Act of 1954 (5 U.S.C. 4501-6), the Board was 
established on December 4, 1958, and is further continued in effect by 
this subpart 4.



Sec. 1209.402  Responsibilities.

    (a) Waiver of rights in inventions. Under the authority of 42 U.S.C. 
2457(f) and pursuant to 14 CFR part 1245 subpart 1 (NASA Management 
Instruction 5109.2), the Board will receive and evaluate petitions for 
waiver of rights of the United States to inventions, accord each 
interested party an opportunity for a hearing, and transmit to the 
Administrator its findings of fact as to such petitions and its 
recommendations for action to be taken with respect thereto.

[[Page 72]]

    (b) Patent licenses. Under the authority of 35 U.S.C. 207(b) and 
pursuant to 14 CFR part 1245 subpart 2 (NASA Management Instruction 
5109.3), the Board will accord a licensee or applicant for license an 
opportunity for a hearing with respect to an appeal which raises a 
dispute over material facts and will be responsible for making findings 
of fact and forwarding them to the Administrator or designee.
    (c) Monetary awards for scientific and technical contributions. (1) 
Under the authority of 42 U.S.C. 2458 and pursuant to 14 CFR part 1240, 
the Board will receive and evaluate each application for award for any 
scientific or technical contribution to the Administration which is 
determined to have significant value in the conduct of aeronautical and 
space activities, will accord each applicant an opportunity for a 
hearing upon such application, and will then transmit to the 
Administrator its recommendation as to the amount of the monetary award 
and terms of the award, if any, to be made for such contribution.
    (2) If the contribution is made by a Government employee, the Board 
is also authorized to consider such contribution for award under the 
incentive awards program and to make an award, if any, on its own 
cognizance, up to the amount of $10,000 in accordance with NASA 
supplements to Chapter 451 of the Federal Personnel Manual covering this 
subject.

[51 FR 3945, Jan. 31, 1986, as amended at 59 FR 35623, July 13, 1994]



Sec. 1209.403  Organizational location.

    The Board is established within the Office of Policy Coordination 
and International Relations.

[59 FR 35623, July 13, 1994]



Sec. 1209.404  Membership.

    (a) The Board will consist of a full-time Chairperson and at least 
six members appointed by the Administrator from within NASA. One of the 
members will be designated by the Chairperson as Vice-Chairperson. The 
Chairperson is responsible directly to the Administrator.
    (b) The Chairperson of the Board is appointed for an unlimited 
period. All other Board members normally will be appointed initially for 
a period of 3 years. The Chairperson is authorized to extend the initial 
appointment of any Board member for an additional period of service. If 
a member resigns or is otherwise unable to participate in the Board's 
activities, a replacement may be appointed for the remainder of the 
uncompleted term and, with the approval of the Chairperson, may be 
appointed for a full 3-year term upon the expiration of the original 
term. This procedure will provide the Board with a continual infusion of 
new members with a variety of professional backgrounds and interests. 
Duties performed by the members of the Board will be in addition to 
their regular duties.
    (c) The Chairperson is authorized to:
    (1) Assemble the Board as required to discharge the duties and 
responsibilities of the Board;
    (2) Establish such panels as may be considered necessary to 
discharge the responsibilities and perform the functions of the Board; 
and
    (3) Issue implementing rules and procedures, and take such other 
actions as are necessary to perform the Board's functions.



Sec. 1209.405  Supporting services.

    (a) The staff of the Board is established to assist the Board in 
discharging its functions and responsibilities. The staff will:
    (1) Prepare analyses of petitions for waiver of rights to inventions 
for the consideration of the Board;
    (2) Prepare evaluation of proposed awards;
    (3) Document Board actions; and
    (4) Perform such other functions as may be required.
    (b) A full-time director of the staff will serve as a nonvoting 
member of the Board, and will direct the activities of the staff of the 
Board.
    (c) The director of the staff of the Board will report to the 
Chairperson of the Board.

[[Page 73]]



PART 1210--DEVELOPMENT WORK FOR INDUSTRY IN NASA WIND TUNNELS--Table of Contents




Sec.
1210.1 Introduction.
1210.2 General classes of work.
1210.3 Priorities and schedules.
1210.4 Company projects.
1210.5 Government projects.
1210.6 Test preparation and conduct.

    Authority: 50 U.S.C. 511-515, 42 U.S.C. 2473(c)(5) and (6).

    Source: 51 FR 34083, Sept. 25, 1986, unless otherwise noted.



Sec. 1210.1  Introduction.

    (a) Authority. The regulations, as they apply to the Unitary Wind 
Tunnel Plan facilities, are promulgated under authority of the Unitary 
Wind Tunnel Plan Act of 1949, as amended, codified at 50 U.S.C. 511-515. 
This statute states ``The facilities authorized * * * shall be operated 
and staffed by the National Aeronautics and Space Administration but 
shall be available primarily industry for testing experimental models in 
connection with the development of aircraft and missiles. Such tests 
shall be scheduled and conducted in accordance with industry's 
requirements, and allocation of laboratory time shall be made in 
accordance with the public interest, with proper emphasis upon the 
requirements of each military service and due consideration of civilian 
needs.''
    (b) Unitary wind tunnel plan facilities. The unitary wind tunnel 
plan facilities are the Ames Research Center 11- by 11-foot wind tunnel, 
9- by 7-foot wind tunnel, and 8- by 7-foot wind tunnel; the Langley 
Research Center 4- by 4-foot high Mach number test section and the 4- by 
4-foot low Mach number test section; and the Lewis Research Center 10- 
by 10-foot wind tunnel. These wind tunnels are operated by NASA for 
industry, NASA, the Department of Defense, and other Government agency 
projects.
    (c) National aeronautical facilities. The national aeronautical 
facilities include the National Transonic Facility (NTF) at Langley 
Research Center and the National Full-Scale Aerodynamic Complex, 
consisting of the 40- by 80-foot and the 80- by 120-foot wind tunnels 
and related support facilities at Ames Research Center. These facilities 
are operated by NASA for industry, NASA, the Department of Defense, and 
other Government agency projects.
    (d) All other wind tunnels. All other NASA wind tunnels will be used 
primarily for NASA research. However, all of these wind tunnels may be 
used for industry work when it is in the public interest either in joint 
programs with NASA or on a fee basis.
    (e) NASA policy. All the projects to be performed in any of the NASA 
wind tunnels must be appropriate to the facility.



Sec. 1210.2  General classes of work.

    (a) Company projects. Includes work for industry on:
    (1) Projects which are neither under contract nor supported by a 
letter of intent from a Government agency; and
    (2) Company desired tests which are related to a project which is 
either under contract with or supported by a letter of intent from a 
Government agency, but are beyond the scope of the tests requested by 
the Government agency.
    (3) A fee will be charged for company projects.
    (b) Government projects. Includes work for industry on projects 
which are either under contract with or supported by a letter of intent 
from a Government agency. The work must be requested by the Government 
agency. No fee will be charged for Government projects.
    (c) United States/foreign industry consortium projects. This 
involves U.S. companies, which have formed a consortium or any other 
type of association with foreign companies, that desire tests on 
aerospace projects of joint or foreign interest. An application for work 
for such a consortium shall disclose the foreign interest in or 
anticipated foreign benefit from tests to be conducted and shall first 
be reviewed by the Director, International Affairs Division, for 
consistency with current U.S. foreign policy and for compatibility with 
section 102 of the National Aeronautics and Space Act of 1958, as 
amended, prior to a final decision being reached on the application. A 
fee will be charged for these consortium

[[Page 74]]

projects unless, in these review procedures, it is determined that 
Government agency cooperative sponsorship warrants a non-fee 
arrangement.
    (d) Foreign company projects. Foreign company requests for wind 
tunnel use that are not related to U.S. Government or U.S. industry 
interests or programs will generally not be granted and will in no event 
be granted prior to a review, as required in paragraph (c) of this 
section, by the Director, International Affairs Division.



Sec. 1210.3  Priorities and schedules.

    (a) Priorities. Unitary wind tunnels shall be available primarily to 
industry for development work. However, allocations of wind tunnel time 
shall be in accordance with the public interests, with due consideration 
to the requirements of the military services, civilian needs, and NASA 
research. Research work shall have priority in all other NASA 
facilities.
    (b) Schedules. Schedules showing the allocation of testing time for 
Government projects and for company projects for unitary wind tunnels 
and other major wind tunnels will be established by the appropriate 
center.



Sec. 1210.4  Company projects.

    (a) Initiation of company projects. Company projects will be 
initiated by a letter to the Center Director followed by a conference 
between company and NASA representatives at the center having 
responsibility for the facility proposed for the project. The company 
representatives will be required to explain the technical need for the 
project and why the NASA facility is required, as well as to define the 
extent of the test program, model and equipment requirements, and 
schedule. The center shall maintain a file of all company requests and 
their disposition. The company will be required to provide a Safety 
Analysis Report (SAR) describing potential hazards that the company test 
program, model, and equipment may present to NASA facilities and 
personnel, and other documentation required by the facility management 
to assure that safety requirements are met.
    (b) Scheduling of tests. In scheduling time for company projects, 
the responsible NASA center will consider the merits of all projects, 
including government, company, and NASA research work relative to the 
national interest and priorities specified in Sec. 1210.3. Every 
reasonable attempt will be made to accommodate technically justifiable 
projects on as timely a basis as possible.
    (c) Fees for company projects. The policy on charges for the use of 
NASA facilities is explained in NASA Management Instruction 9080.1, 
``Review, Approval, and Imposition of User Charges.'' The fee imposed 
for a company project will cover all direct and indirect costs to NASA 
for the wind tunnel test.
    (1) Occupancy time charge. (i) The occupancy time will be computed 
from the start of installation of the test article in the wind tunnel 
test section through the time that the test article is removed from the 
test section and the test section is restored to its original condition.
    (ii) The occupancy time rate will be determined in accordance with 
NASA Management Instruction 9080.1.
    (2) Energy/Fuel. The charge for energy/fuel will be determined from 
the energy/fuel consumed during the tests and the actual cost to NASA.
    (3) Data reduction. The cost of data reduction and the data report 
will include labor, materials, computational costs, and appropriate 
indirect charges in accordance with NASA Management Instruction 9080.1.
    (4) Cancellation of scheduled wind tunnel time. Upon determination 
of a test schedule by the representatives of the company and of NASA, it 
becomes the responsibility of the company to meet this schedule. A 
project may be cancelled by the company without charge on 60 days' 
notice if succeeding projects are ready for testing and can be moved 
into the company's previously scheduled time. In the event subsequently 
scheduled work cannot be scheduled in lieu of the company's work, when 
cancelled with less than 60 days' notice, the company shall be required 
to pay the occupancy time charge for the scheduled test period or for 
the period the facility test section

[[Page 75]]

is idle due to the cancellation, whichever results in the smaller 
charge. Curtailment of a project underway before the end of the 
scheduled test period may be made by the company. In this event, the 
company shall be required to pay the occupancy charge for the time used 
plus the unused scheduled time or for the idle time of the test section, 
whichever is the smaller.
    (5) High-power requirements. Unavailability of adequate power or 
economic considerations may, on occasion, cause delay or cancellation of 
high-powered test runs. The company shall cooperate with the facility 
staff in the scheduling of low-powered runs during periods when large 
blocks of power are unavailable. However, should rescheduling of test 
runs to accommodate power shortages be impractical, occupancy time 
charge credits will be made for time lost arising from such shortages. 
The basis for these credits, which will also be made for delays due to 
breakdown or malfunction of Government-furnished equipment or 
instrumentation, or due to other reasons beyond the control of the 
company, will be determined by each center. For example, the test period 
allotted for the program may be extended to offset delays in lieu of a 
refund.
    (d) Test data transmittal. The basic data for company projects will 
be transmitted to the requesting company without detailed analysis but 
with the necessary description of methods and techniques employed to 
permit proper interpretation of the data.
    (e) Proprietary rights. In order to protect the trade secrets of 
companies, NASA will generate one set of final results, which will 
become the property of the company and be promptly transmitted to the 
company. If, subsequently, there is need to review the results, it will 
be the responsibility of the company to provide the NASA center with 
copies of the resulting data. Upon completion of the review, the data 
will be returned to the company. Should the company desire to maintain 
its trade secret rights in the data during the loan period, it should 
mark the data with a notice stating that the data shall not be used or 
disclosed other than for review purposes without prior written 
permission of the company. NASA, in turn, will protect that data covered 
by the notice which is protected under the law as a trade secret.
    (f) Test preparation and conduct. See Sec. 1210.6.



Sec. 1210.5  Government projects.

    (a) Initiation of Government projects. Government projects shall be 
initiated through a conference of representatives from the contracted 
company, the sponsoring Government agency, and the staff of the NASA 
center having responsibility for the facility proposed for the project. 
The purpose of the conference will be to establish the technical basis 
for the project and why the NASA facility is required as well as to 
define the extent of the test program, model and instrumentation 
requirements, and schedule. Upon concurrence of the NASA staff, the 
sponsoring Government agency will submit a letter of request to the 
Center Director. A Safety Analysis Report (SAR) will be required, 
describing the potential hazards that the project test program, model, 
and equipment may present to NASA facilities and personnel, as well as 
other documentation required by the facility management to assure that 
safety requirements have been met.
    (b) Scheduling of tests. In scheduling time for Government projects, 
the responsible NASA center will consider the merits of all projects, 
including Government, company, and NASA research work relative to the 
national interest and priorities specified in Sec. 1210.3. Every 
reasonable attempt will be made to accommodate technically justifiable 
projects on a timely basis.
    (c) Test data transmittal. The basic data for Government projects, 
without detailed analysis but with the necessary description of methods 
and techniques employed to permit the proper interpretation of the data, 
will be transmitted to the company for whom the tests were made and to 
the sponsoring Government agency. Further disclosure by NASA of the test 
results will be made only with the prior concurrence of the sponsoring 
Government agency.

[[Page 76]]



Sec. 1210.6  Test preparation and conduct.

    (a) Programming by user. The user will be given the greatest 
possible freedom within the objectives of the scheduled program to 
obtain the quality and quantity of information desired, to determine the 
sequence and number of test runs to be made, and to make modifications 
to the program arising from the results obtained, subject to 
requirements of safety, energy conservation, practicability, and the 
total time assigned.
    (b) Model systems criteria. Information will be furnished for each 
facility on the permissible size of model, standard balances, safety 
margins to be used in the design of models, model mounting details, and 
other pertinent factors. All model systems criteria required by the 
facility for safety consideration including the necessary drawings and 
stress analyses of the articles to be tested will be furnished at a time 
specified by the facility staff for their use in preparing for the test.
    (c) Instrumentation. Each facility will provide basic 
instrumentation suitable for the test range of the respective facility 
and computing equipment for the reduction of test data. If the basic 
instrumentation furnished by the facility does not meet these test 
requirements, the user will provide suitable instrumentation which will 
be calibrated by the facility staff to ensure accuracy of measurement. 
This Instrumentation will be made available sufficiently in advance of 
the test date to accomplish the calibration. Serious delays arising from 
inaccuracies in user supplied instrumentation, if occurring during the 
scheduled test period, may result in reassignment of the position of the 
tests on the facility schedule. Detailed specifications and arrangements 
for special instrumentation will be established by mutual agreement. The 
user will be required to furnish all information necessary to prepare 
the data reduction software program at a date specified by the facility 
staff.
    (d) Test program. All tests will be conducted under NASA supervision 
and by NASA personnel or by NASA support service contractor personnel 
unless approved otherwise by the facility manager. The test program 
shall be approved by NASA personnel before the test project is accepted. 
By agreement between the user (company representatives or the requesting 
agency) and the center staff, changes in the test program may be made 
within the objectives of the scheduled program if time is available. 
When tests are not totally conducted by NASA personnel or by NASA 
support service contractor personnel, the NASA Field Installation Safety 
Officer shall verify that the user personnel are fully cognizant of 
facility safety problems and operations. A current SAR on the facility 
shall be available to the user personnel for review.
    (e) Test data. The NASA staff will be responsible for obtaining all 
test data, its reduction to suitable coefficient form, and the accuracy 
of the final data, but NASA will assume no responsibility for the 
interpretation of the data by others. Transmittal of the data will be 
made as soon as the test is completed and the data are deemed releasable 
by NASA. For company projects, the data will be transmitted as directed 
by the company. The data for Government projects will be transmitted 
simultaneously to the sponsoring Government agency and the contractor 
(if applicable), unless otherwise directed by the sponsoring agency.
    (f) Shops and office space. During the conduct of user testing, NASA 
will provide desk space and at least limited use of the shop facilities 
to the user whose projects are under test.
    (g) User furnished personnel. User personnel associated with each 
project will be agreed upon between the user and facility staff prior to 
the test.

                          PART 1211 [RESERVED]



PART 1212--PRIVACY ACT--NASA REGULATIONS--Table of Contents




                      Subpart 1212.1--Basic Policy

Sec.
1212.100 Scope and purpose.
1212.101 Definitions.

                    Subpart 1212.2--Access to Records

1212.200 Determining existence of records subject to the Privacy Act.
1212.201 Requesting a record.
1212.202 Identification procedures.

[[Page 77]]

1212.203 Disclosures.
1212.204 Fees.
1212.205 Exceptions to individuals' rights of access.

            Subpart 1212.3--Amendments to Privacy Act Records

1212.300 Requesting amendment.
1212.301 Processing the request to amend.
1212.302 Granting the request to amend.

               Subpart 1212.4--Appeals and Related Matters

1212.400 Appeals.
1212.401 Filing statements of dispute.
1212.402 Disclosure to third parties of disputed records.

       Subpart 1212.5--Exemptions to Individuals' Rights of Access

1212.500 Exemptions under 5 U.S.C. 552a (j) and (k).
1212.501 Record systems determined to be exempt.

             Subpart 1212.6--Instructions for NASA Employees

1212.600 General policy.
1212.601 Maintenance and publication requirements for systems of 
          records.
1212.602 Requirements for collecting information.
1212.603 Mailing lists.
1212.604 Social security numbers.
1212.605 Safeguarding information in systems of records.
1212.606 Duplicate copies of records or portions of records.

           Subpart 1212.7--NASA Authority and Responsibilities

1212.700 NASA employees.
1212.701 Assistant Deputy Administrator.
1212.702 Associate Administrator for Management Systems and Facilities.
1212.703 Headquarters and Field or Component Installations.
1212.704 System manager.
1212.705 Assistant Administrator for Procurement.
1212.706 Delegation of authority.

    Subpart 1212.8--Failure to Comply With Requirements of This Part

1212.800 Civil remedies.
1212.801 Criminal penalties.

    Authority: The National Aeronautics and Space Act of 1958, as 
amended, 72 Stat. 429, 42 U.S.C. 2473; the Privacy Act of 1974, as 
amended, 88 Stat. 1896, 5 U.S.C. 552a.

    Source: 57 FR 4928, Feb. 11, 1992, unless otherwise noted.



                      Subpart 1212.1--Basic Policy



Sec. 1212.100  Scope and purpose.

    This part 1212 implements the Privacy Act of 1974, as amended (5 
U.S.C. 552a). It establishes procedures for individuals to access their 
Privacy Act records and to request amendment of information in records 
concerning them. It also provides procedures for administrative appeals 
and other remedies. This part applies to systems of records located at 
or under the cognizance of NASA Headquarters, NASA Field Installations, 
and NASA Component Installations, as defined in part 1201 of this 
chapter.



Sec. 1212.101  Definitions.

    For the purposes of this part, the following definitions shall apply 
in addition to definitions contained in the Privacy Act of 1974, as 
amended (5 U.S.C. 552a):
    (a) The term individual means a living person who is either a 
citizen of the United States or an alien lawfully admitted for permanent 
residence.
    (b) The term maintain includes maintain, collect, use or 
disseminate.
    (c) The term record means any item, collection, or grouping of 
information about an individual including, but not limited to, 
education, financial transactions, medical history, and criminal or 
employment history, and that contains a name, or the identifying number, 
symbol, or other identifying particular assigned to the individual, such 
as a finger or voice print or a photograph.
    (d) The term system of records means a group of any records from 
which information is retrieved by the name of the individual or by some 
identifying number, symbol or other identifying particular assigned to 
the individual.
    (e) The term system manager means the NASA official who is 
responsible for a system of records as designated in the system notice 
of that system of records published in the Federal Register. When a 
system of records includes portions located at more than one NASA 
Installation, the term system

[[Page 78]]

manager includes any subsystem manager designated in the system notice 
as being responsible for that portion of the system of records located 
at the respective Installation.
    (f) The term systems notice means, with respect to a system of 
records the publication of information in the Federal Register upon 
establishment or revision of the existence and character of the system 
of records. The notice shall include that information as required by 5 
U.S.C. 552a(e)(4).
    (g) The term routine use means, with respect to the disclosure of a 
record, the use of the record for a purpose which is compatible with the 
purpose for which it was collected.
    (h) The term NASA employee or NASA official, particularly for the 
purpose of Sec. 1212.203(g) related to the disclosure of a record to 
those who have a need for the record in the performance of their 
official duties, includes employees of a NASA contractor which operates 
or maintains a NASA system of records for or on behalf of NASA.
    (i) The term NASA information center refers to information centers 
established to facilitate public access to NASA records under part 1206 
of this chapter. See Sec. 1206.401 of this chapter for the address of 
each NASA information center.



                    Subpart 1212.2--Access to Records



Sec. 1212.200  Determining existence of records subject to the Privacy Act.

    The procedures outlined in this subpart 1212.2 apply to the 
following types of requests under the Privacy Act made by individuals 
concerning records about themselves:
    (a) To determine if information on the requester is included in a 
system of records;
    (b) For access to a record; and
    (c) For an accounting of disclosures of the individual's Privacy Act 
records.



Sec. 1212.201  Requesting a record.

    (a) Individuals may request access to their Privacy Act records, 
either in person or in writing.
    (b) Individuals may also authorize a third party to have access to 
their Privacy Act records. This authorization shall be in writing, 
signed by the individual and contain the individual's address as well as 
the name and address of the representative being authorized access. The 
identities of both the subject individual and the representative must be 
verified in accordance with the procedures set forth in Sec. 1212.202 
of this part.
    (c)(1) Requests must be directed to the appropriate system manager, 
or, if unknown, to the NASA Headquarters or Field Installation 
Information Center. The request should be identified clearly on the 
envelope and on the letter as a ``Request Under the Privacy Act.''
    (2) Where possible, requests should contain the following 
information to ensure timely processing:
    (i) Name and address of subject.
    (ii) Identity of the system of records.
    (iii) Nature of the request.
    (iv) Identifying information specified in the applicable system 
notice to assist in identifying the request, such as location of the 
record, if known, full name, birth date, etc.
    (d) NASA has no obligation to comply with a nonspecific request for 
access to information concerning an individual, e.g., a request to 
provide copies of ``all information contained in your files concerning 
me,'' although a good faith effort will be made to locate records if 
there is reason to believe NASA has records on the individual. If the 
request is so incomplete or incomprehensible that the requested record 
cannot be identified, additional information or clarification will be 
requested in the acknowledgement, and assistance to the individual will 
be offered as appropriate.
    (e) If the information center receives a request for access, the 
Information Center will record the date of receipt and immediately 
forward the request to the responsible system manager for handling.
    (f) Normally, the system manager shall respond to a request for 
access within 10 work days of receipt of the request and the access 
shall be provided within 30 work days of receipt.
    (1) In response to a request for access, the system manager shall:

[[Page 79]]

    (i) Notify the requester that there is no record on the individual 
in the system of records and inform the requester of the procedures to 
follow for appeal (See Sec. 1212.4);
    (ii) Notify the requester that the record is exempt from disclosure, 
cite the appropriate exemption, and inform the requester of the 
procedures to follow for appeal (See Sec. 1212.4);
    (iii) Upon request, promptly provide copies of the record, subject 
to the fee requirements (Sec. 1212.204); or
    (iv) Make the individual's record available for personal inspection 
in the presence of a NASA representative.
    (2) Unless the system manager agrees to another location, personal 
inspection of the record shall be at the location of the record as 
identified in the system notice.
    (3) When an individual requests records in a system of records 
maintained on a third party, the request shall be processed as a Freedom 
of Information Act (FOIA) request under 14 CFR part 1206. If the records 
requested are subject to release under FOIA (5 U.S.C. 552(b)), then a 
Privacy Act exemption may not be invoked to deny access.
    (4) When an individual requests records in a system of records 
maintained on the individual, the request shall be processed under this 
part. NASA will not rely on exemptions contained in FOIA to withhold any 
record which is otherwise accessible to the individual under this part.



Sec. 1212.202  Identification procedures.

    (a) The system manager will release records to the requester or 
representative in person only upon production of satisfactory 
identification which includes the individual's name, signature, and 
photograph or physical description.
    (b) The system manager will release copies of records by mail only 
when the circumstances indicate that the requester and the subject of 
the record are the same. The system manager may require that the 
requester's signature be notarized or witnessed by two individuals 
unrelated to the requester.
    (c) Identity procedures more stringent than those required in this 
section may be prescribed in the system notice when the records are 
medical or otherwise sensitive.



Sec. 1212.203  Disclosures.

    (a) The system manager shall keep a disclosure accounting for each 
disclosure to a third party of a record from a system of records. This 
includes records disclosed pursuant to computer matching programs (See 
NASA Management Instruction (NMI) 1382.18).
    (b) Disclosure accountings are not required but are recommended for 
disclosures made:
    (1) With the subject individual's consent; or
    (2) In accordance with Sec. 1212.203(g) (1) and (2), below.
    (c) The disclosure accounting required by paragraph (a) of this 
section shall include:
    (1) The date, nature, and purpose of the disclosure; and
    (2) The name and address of the recipient person or Agency.
    (d) The disclosure accounting shall be retained for at least 5 years 
after the disclosure or for the life of the record, whichever is longer.
    (e) The disclosure accounting maintained under the requirements of 
this section is not itself a system of records.
    (f) Records in a NASA system of records may not be disclosed to 
third parties without the consent of the subject individual. However, in 
consonance with 5 U.S.C. 552a(b), disclosure may be authorized without 
consent, if disclosure would be:
    (1) To an officer or employee of NASA who has a need for the record 
in the performance of official duties;
    (2) Required under the Freedom of Information Act (5 U.S.C. 552) and 
part 1206 of this chapter;
    (3) For a routine use described in the system notice for the system 
of records;
    (4) To the Bureau of the Census for purposes of planning or carrying 
out a census or survey or related activity pursuant to the provisions of 
Title 13, U.S. Code;
    (5) To a recipient who has provided NASA with advance adequate 
written assurance that the record will be used solely as a statistical 
research or reporting record, and the record is to be

[[Page 80]]

transferred in a form that is not individually identifiable;
    (6) To the National Archives and Records Administration as a record 
which has sufficient historical or other value to warrant its continued 
preservation by the United States Government or for evaluation by the 
Archivist of the United States or the Archivist's designee to determine 
whether the record has such value;
    (7) To another agency or to an instrumentality of any governmental 
jurisdiction within or under the control of the United States for a 
civil or criminal law enforcement activity, if the activity is 
authorized by law and if the head of the agency or instrumentality has 
made a written request to NASA specifying the particular portion desired 
and the law enforcement activity for which the record is sought;
    (8) To a person pursuant to a showing of compelling circumstances 
affecting the health or safety of an individual if upon such disclosure 
notification is transmitted to the last known address of such 
individual;
    (9) To either House of Congress or, to the extent the matter is 
within its jurisdiction, any committee or subcommittee, or any joint 
committee of Congress or subcommittee of any such joint committee;
    (10) To the Comptroller General, or any of the Comptroller's 
authorized representative(s), in the course of the performance of the 
duties of the General Accounting Office;
    (11) Pursuant to the order of a court of competent jurisdiction; or
    (12) To a consumer reporting agency in accordance with section 
3711(f) of Title 31.



Sec. 1212.204  Fees.

    (a) Fees will not be charged for:
    (1) Search for a retrieval of the requesting individual's records;
    (2) Review of the records;
    (3) Making a copy of a record when it is a necessary part of the 
process of making the record available for review;
    (4) Transportation of the record(s);
    (5) Making a copy of an amended record to provide evidence of the 
amendment; or
    (6) Copies of records if this is determined to be in the best 
interest of the Government.
    (b) Fees for the duplication of records will be assessed in 
accordance with Sec. 1206.700(a) of this chapter.
    (c) Where it appears that duplication fees chargeable under this 
section will exceed $25, the requester shall be provided an estimate of 
the fees before copies are made. Where possible, the requester will be 
afforded the opportunity to confer with Agency personnel in a manner 
which will reduce the fees, yet still meet the needs of the requester.
    (d) Where the anticipated fee chargeable under this section exceeds 
$25, an advance deposit of part or all of the anticipated fee may be 
required.



Sec. 1212.205  Exceptions to individual's rights of access.

    (a) The NASA Administrator has determined that the systems of 
records set forth in Sec. 1212.501 are exempt from disclosure to the 
extent provided therein.
    (b) Medical records. Normally, an individual's medical record shall 
be disclosed to the individual, unless the system manages, in 
consultation with a medical doctor, determines that access to the record 
could have an adverse effect upon the individual. In this case, NASA 
shall allow access to the record by a medical doctor designated in 
writing by the requesting individual.
    (c) Test and qualification materials. Testing or examination 
material used solely to determine individual qualifications for 
appointment or promotion in the Federal service the disclosure of which 
would compromise the objectivity or fairness of the testing or 
examination process and copies of certificates of eligibles and other 
lists of eligibles, the disclosure of which is proscribed by 5 CFR 
300.201, shall be removed from an individual's record containing such 
information before granting access.
    (d) Information compiled for civil actions or proceedings. Nothing 
in this part shall allow an individual access to any information 
compiled in reasonable anticipation of a civil action or proceeding.

[[Page 81]]



            Subpart 1212.3--Amendments to Privacy Act Records



Sec. 1212.300  Requesting amendment.

    Individuals may request that NASA amend their records maintained in 
a NASA system of records. This request shall be in writing, addressed to 
the appropriate system manager, and shall contain the following:
    (a) A notation on the envelope and on the letter that it is a 
``Request for Amendment of Individual Record under the Privacy Act;''
    (b) The name of the system of records;
    (c) Any information necessary to retrieve the record, as specified 
in the system notice for the system of records (See Sec. 
1212.201(c)(2));
    (d) A description of that information in the record which is alleged 
to be inaccurate, irrelevant, untimely, or incomplete; and,
    (e) Any documentary evidence or material available to support the 
request.



Sec. 1212.301  Processing the request to amend.

    (a) Within 10 work days of receipt by NASA of a request to amend a 
record, the system manager shall provide the requester with a written 
determination or acknowledgement advising when action may be taken.
    (b) When necessary, NASA may utilize up to 30 work days after 
receipt to provide the determination on a request to amend a record.
    (c) If the request for amendment is denied, the determination shall 
explain the reasons for the denial and inform the requester of the 
procedures to follow for appeal (See Sec. 1212.4)).



Sec. 1212.302  Granting the request to amend.

    NASA shall make the requested amendment clearly on the record itself 
and all information deemed to be inaccurate, irrelevant, or untimely 
shall be deleted and destroyed. Incomplete information shall either be 
amended or deleted and destroyed. The individual shall then be informed 
in writing that the amendment has been made. If the inaccurate, 
irrelevant, untimely, or incomplete portion of the record has previously 
been disclosed, then the system manager shall notify those persons or 
agencies of the amended information, referencing the prior disclosures 
(See Sec. 1212.402).



               Subpart 1212.4--Appeals and Related Matters



Sec. 1212.400  Appeals.

    (a) Individuals may appeal to the Assistant Deputy Administrator 
when they:
    (1) Have requested amendment of a record and have received an 
adverse initial determination;
    (2) Have been denied access to a record; or,
    (3) Have not been granted access within 30 work days of their 
request.
    (b) An appeal shall:
    (1) Be in writing and addressed to the Assistant Deputy 
Administrator, NASA, Washington, DC 20546;
    (2) Be identified clearly on the envelope and in the letter as an 
``Appeal under the Privacy Act;''
    (3) Include a copy of any pertinent documents; and
    (4) State the reasons for the appeal.
    (c) Appeals from adverse initial determinations or denials of access 
must be submitted within 30 work days of the date of the requester's 
receipt of the initial determination. Appeals involving failure to grant 
access may be submitted any time after the 30 work day period has 
expired (See Sec. 1212.201(f)).
    (d) A final determination on an appeal shall be made within 30 work 
days after its receipt by the Assistant Deputy Administrator, unless, 
for good cause shown, the Assistant Deputy Administrator extends such 30 
work day period. Prior to the expiration of the 30 work day period, the 
requester shall be notified of any such extension.
    (e) If a denial of a request to amend a record is upheld, the final 
determination shall:
    (1) Explain the basis for the detail;
    (2) Include information as to how the requester goes about filing a 
statement of dispute under the procedures of Sec. 1212.401; and,
    (3) Include a statement that the final determination is subject to 
judicial review under 5 U.S.C. 552a(g).

[[Page 82]]



Sec. 1212.401  Filing statements of dispute.

    (a) A statement of dispute shall:
    (1) Be in writing;
    (2) Set forth reasons for the individual's disagreement with NASA's 
refusal to amend the record;
    (3) Be concise;
    (4) Be addressed to the system manager; and,
    (5) Be identified on the envelope and in the letter as a ``Statement 
of Dispute under the Privacy Act.''
    (b) The system manager shall prepare an addendum to the statement 
explaining the basis for NASA's refusal to amend the disputed record. A 
copy of the addendum shall be provided to the individual.
    (c) The system manager shall ensure that the statement of dispute 
and addendum are either filed with the disputed record or that a 
notation appears in the record clearly referencing the statement of 
dispute and addendum so that they may be readily retrieved.



Sec. 1212.402  Disclosure to third parties of disputed records.

    (a) The system manager shall promptly provide persons or agencies to 
whom the disputed portion of a record was previously disclosed and for 
which an accounting of the disclosure exists under the requirements of 
Sec. 1212.203 of this part, with a copy of the statement of dispute and 
addendum, along with a statement referencing the prior disclosure. The 
subject individual shall be notified as to those individuals or agencies 
which are provided with the statement of dispute and addendum.
    (b) Any subsequent disclosure of a disputed record shall clearly 
note the portion of the record which is disputed and shall be 
accompanied by a copy of the statement of dispute and addendum.



       Subpart 1212.5--Exemptions to Individuals' Rights of Access



Sec. 1212.500  Exemptions under 5 U.S.C. 552a (j) and (k).

    (a) These provisions authorize the Administrator of NASA to exempt 
certain NASA Privacy Act systems of records from portions of the 
requirements of this regulation.
    (b) The Administrator has delegated this authority to the Assistant 
Deputy Administrator (See Sec. 1212.701).
    (c) For those NASA systems of records that are determined to be 
exempt, the system notice shall describe the exemption and the reasons.



Sec. 1212.501  Record systems determined to be exempt.

    The Administrator has determined that the following systems of 
records are exempt to the extent provided hereinafter.
    (a) Inspector General Investigations Case Files--(1) Sections of the 
Act from which exempted. (i) The Inspector General Investigations Case 
Files system of records is exempt from all sections of the Privacy Act 
(5 U.S.C. 552a) except the following: (b) relating to conditions of 
disclosure; (c) (1) and (2) relating to keeping and maintaining a 
disclosure accounting; (e)(4) (A) through (F) relating to publishing a 
system notice setting forth name, location, categories of individuals 
and records, routine uses, and policies regarding storage, 
retrievability, access controls, retention and disposal of the records; 
(e) (6), (7), (9), (10), and (11) relating to dissemination and 
maintenance of records, and (i) relating to criminal penalties. This 
exemption applies to those records and information contained in the 
system of records pertaining to the enforcement of criminal laws.
    (ii) To the extent that there may exist noncriminal investigative 
files within this system of records, the Inspector General 
Investigations Case Files system of records is exempt from the following 
sections of the Privacy Act (5 U.S.C. 552a): (c)(3) relating to access 
to the disclosure accounting, (d) relating to access to records, (e)(1) 
relating to the type of information maintained in the records; (e)(4) 
(G), (H), and (I) relating to publishing the system notice information 
as to agency procedures for access and amendment and information as to 
the categories of sources or records, and (f) relating to developing 
agency rules for gaining access and making corrections.

[[Page 83]]

    (2) Reason for exemptions. (i) The Office of Inspector General is an 
office of NASA, a component of which performs as its principal function 
activity pertaining to the enforcement of criminal laws, within the 
meaning of 5 U.S.C. 552a(j)(2). This exemption applies only to those 
records and information contained in the system of records pertaining to 
criminal investigations. This system of records is exempt for one or 
more of the following reasons:
    (A) To prevent interference with law enforcement proceedings.
    (B) To avoid unwarranted invasion of personal privacy, by disclosure 
of information about third parties, including other subjects of 
investigation, investigators, and witnesses.
    (C) To protect the identity of Federal employees who furnish a 
complaint or information to the OIG, consistent with section 7(b) of the 
Inspector General Act of 1978, as amended, 5 U.S.C. App.
    (D) To protect the confidentiality of non-Federal employee sources 
of information.
    (E) To assure access to sources of confidential information, 
including that contained in Federal, State, and local criminal law 
enforcement information systems.
    (F) To prevent disclosure of law enforcement techniques and 
procedures.
    (G) To avoid endangering the life or physical safety of confidential 
sources and law enforcement personnel.
    (ii) Investigative records within this system of records which are 
compiled for law enforcement purposes, other than material within the 
scope of subsection (j)(2), are exempt under the provisions of 5 U.S.C. 
552a(k)(2): Provided, however, That if any individual is denied any 
right, privilege, or benefit that they would otherwise be entitled by 
Federal law, or for which they would otherwise be eligible, as a result 
of the maintenance of such material, such material shall be provided to 
such individual, except to the extent that the disclosure of such 
material would reveal the identity of a source who furnished information 
to the Government under an express promise that the identity of the 
source would be held in confidence, or, prior to January 1, 1975, under 
an implied promise that the identity of the sources would be held in 
confidence. This system of records is exempt for one or more of the 
following reasons:
    (A) To prevent interference with law enforcement proceedings.
    (B) To protect investigatory material compiled for law enforcement 
purposes.
    (C) To avoid unwarranted invasion of personal privacy, by disclosure 
of information about third parties, including other subjects of 
investigation, law enforcement personnel, and sources of information.
    (D) To fullfill commitments made to protect the confidentiality of 
sources.
    (E) To protect the identity of Federal employees who furnish a 
complaint or information to the OIG, consistent with section 7(b) of the 
Inspector General Act of 1978, as amended, 5 U.S.C. App.
    (F) To assure access to sources of confidential information, 
including that contained in Federal, State, and local criminal law 
enforcement information systems.
    (G) To prevent disclosure of law enforcement techniques and 
procedures.
    (H) To avoid endangering the life or physical safety of confidential 
sources and law enforcement personnel.
    (iii) Records within this system of records comprised of 
investigatory material compiled solely for the purpose of determining 
suitability or eligibility for Federal civilian employment or access to 
classified information, are exempt under the provisions of 5 U.S.C. 
552a(k)(5), but only to the extent that disclosure would reveal the 
identity of a source who furnished information to the Government under 
an express promise that the identity of the source would be held in 
confidence, or prior to January 1, 1975, under an implied promise that 
the identity of the source would be held in confidence. This system of 
records is exempt for one or more of the following reasons:
    (A) To fulfill commitments made to protect the confidentiality of 
sources.
    (B) To assure access to sources of confidential information, 
including that contained in Federal, State, and local criminal law 
enforcement information systems.
    (b) Security Records System--(1) Sections of the Act from which 
exempted.

[[Page 84]]

The Security Records System is exempted from the following sections of 
the Privacy Act (5 U.S.C. 552a): (c)(3) relating to access to the 
disclosure accounting; (d) relating to access to the records; (e)(1) 
relating to the type of information maintained in the records; (e)(4) 
(G), (H), and (I) relating to publishing the system notice information 
as to agency procedures for access and amendment, and information as to 
the categories of sources of records; and (f) relating to developing 
Agency rules for gaining access and making corrections.
    (2) Reason for exemption. (i) Personnel Security Records contained 
in the system of records which are compiled solely for the purpose of 
determining suitability, eligibility, or qualifications for Federal 
civilian employment, Federal contracts, or access to classified 
information are exempt under the provisions of 5 U.S.C. 552a(k)(5), but 
only to the extent that the disclosure of such material would reveal the 
identity of the source who furnished information to the Government under 
an express promise that the identity of the source would be held in 
confidence, or, prior to January 1, 1975, under an implied promise that 
the identity of the sources would be held in confidence. This system of 
records is exempt for one or more of the following reasons:
    (A) To fulfill commitments made to protect the confidentiality of 
sources.
    (B) To assure access to sources of confidential information, 
including that contained in Federal, State, and local criminal law 
enforcement information systems.
    (ii) Criminal Matter Records are contained in the system of records 
and are exempt under the provisions of 5 U.S.C. 552a(k)(2): Provided, 
however, That if any individual is denied any right, privilege, or 
benefit that they would otherwise be entitled by Federal law, or for 
which they would otherwise be eligible, as a result of the maintenance 
of such material, such material shall be provided to such individual, 
except to the extent that the disclosure of such material would reveal 
the identity of a source who furnished information to the Government 
under an express promise that the identity of the source would be held 
in confidence, or, prior to January 1, 1975, under an implied promise 
that the identity of the sources would be held in confidence. This 
system of records is exempt for one or more of the following reasons:
    (A) To prevent interference with law enforcement proceedings.
    (B) To protect investigatory material compiled for law enforcement 
purposes.
    (C) To avoid unwarranted invasion of personal privacy, by disclosure 
of information about third parties, including other subjects of 
investigation, law enforcement personnel, and sources of information.
    (D) To fulfill commitments made to protect the confidentiality of 
sources.
    (E) To assure access to sources of confidential information, 
including that contained in Federal, State, and local criminal law 
enforcement information systems.
    (F) To prevent disclosure of law enforcement techniques and 
procedures.
    (G) To avoid endangering the life or physical safety of confidential 
sources and law enforcement personnel.
    (iii) The system of records includes records subject to the 
provisions of 5 U.S.C. 552(b)(1) (required by Executive order to be kept 
secret in the interest of national defense or foreign policy), and such 
records are exempt under 5 U.S.C. 552a(k)(1).



             Subpart 1212.6--Instructions for NASA Employees



Sec. 1212.600  General policy.

    In compliance with the Privacy Act and in accordance with the 
requirements and procedures of this regulation, NASA has an obligation 
to:
    (a) Advise individuals, when requested, as to whether any specific 
system of records maintained by NASA contains records pertaining to 
them;
    (b) Prevent records being maintained by NASA in a system of records 
for a specific purpose from being used or made available for another 
purpose without the individual's consent; and,
    (c) Permit individuals to have access to information about 
themselves in a NASA system of records, to have a copy made, and, if 
appropriate under subpart 1212.3 of this part, to amend the records.

[[Page 85]]



Sec. 1212.601  Maintenance and publication requirements for systems of records.

    (a) In maintaining systems of records, NASA shall:
    (1) Maintain any record in a system of records for necessary and 
lawful purposes only, assure that the information is current and 
accurate for its intended use, and provide adequate safeguards to 
prevent misuse of the information.
    (2) Maintain only information about an individual relevant and 
necessary to accomplish a purpose or to carry out a function of NASA 
authorized by law or by Executive order of the President.
    (3) Maintain records used by NASA officials in making any 
determination about any individual with such accuracy, relevance, 
timeliness, and completeness reasonably necessary to assure fairness to 
the individual in making the determination.
    (4) Maintain no record describing how an individual exercises rights 
guaranteed by the First Amendment unless expressly authorized by 
statute, by the individual about whom the record is maintained or unless 
pertinent to and within the scope of an authorized law enforcement 
activity.
    (5) Maintain and provide access to records of other agencies under 
NASA's control consistent with the regulations of this part.
    (b) Any system of records maintained by NASA which is in addition to 
or substantially different from a Governmentwide systems of records 
described in a systems notice published by another agency shall be 
regarded as a NASA system of records subject to the requirements of this 
part, and the NASA system notice shall include a reference to the system 
notice of the other agency.
    (c) NASA shall provide adequate advance notice to Congress and OMB 
of any proposal to establish a new system of records or alter any 
existing system of records as prescribed by OMB Circular No. A-130, 
appendix I.



Sec. 1212.602  Requirements for collecting information.

    In collecting information for systems of records, the following 
requirements shall be met:
    (a) Information shall be collected to the greatest extent 
practicable directly from the subject individual when the information 
may result in adverse determinations about an individual's rights, 
benefits, and privileges under Federal programs. Exceptions to this 
policy may be made under certain circumstances, such as one of the 
following:
    (1) There is a need to verify the accuracy of the information 
supplied by an individual.
    (2) The information can only be obtained from a third party.
    (3) There is no risk that information collected from third parties, 
if inaccurate, could result in an adverse determination to the 
individual concerned.
    (4) Provisions are made to verify with the individual information 
collected from a third party.
    (b) Each individual who is asked to supply information shall be 
informed of the following:
    (1) The authority (whether granted by statute, or by Executive order 
of the President) for requesting the information;
    (2) Whether disclosure is mandatory or voluntary;
    (3) The intended official use of the information;
    (4) The routine uses which may be made of the information, as 
published in the system notices;
    (5) The effects, if any, on the individual of not providing all or 
any part of the requested information.



Sec. 1212.603  Mailing lists.

    NASA will not sell, rent, or otherwise disclose an individual's name 
and address to anyone, unless otherwise specifically authorized by law.



Sec. 1212.604  Social security numbers.

    (a) It is unlawful for NASA to deny to individuals any rights, 
benefits, or privileges provided by law because of the individuals' 
refusal to disclose their social security numbers, except where:
    (1) The disclosure is required by law; or
    (2) The disclosure is from a system of records in existence and 
operating before January 1, 1975, and was required

[[Page 86]]

under statute or regulation adopted before that date to verify the 
identity of the individual(s).
    (b) Any time individuals are requested to disclose their social 
security numbers, NASA shall indicate whether that disclosure is 
mandatory or voluntary, by what authority the numbers are requested, and 
what uses will be made of them.



Sec. 1212.605  Safeguarding information in systems of records.

    (a) Safeguards appropriate for a NASA system of records shall be 
developed by the system manager in a written plan approved by the 
Installation Security Officer.
    (b) When records or copies of records are distributed within NASA 
they shall be prominently identified as records protected under the 
Privacy Act and shall be subject to the same safeguard, retention, and 
disposition requirements applicable to the system of records.
    (c) When records or copies of records are distributed to other 
Federal agencies, other than those having custody of the systems of 
records, they shall be prominently identified as records protected under 
the Privacy Act.
    (d) Records that are otherwise required by law to be released to the 
public need not be safeguarded or identified as Privacy Act records.



Sec. 1212.606  Duplicate copies of records or portions of records.

    (a) NASA officials may maintain and use, for official purposes, 
duplicate copies of records or portions of records from a system of 
records maintained by their own organizational unit. This practice 
should occur only where there are justifiable organizational needs for 
it, e.g., where geographic distances make use of the system of records 
time consuming or inconvenient. These duplicate copies shall not be 
considered a separate NASA system of records. For example, an office 
head or designee may keep duplicate copies of personnel, training, or 
similar records on employees within the organization for administrative 
convenience purposes.
    (b) No disclosure shall be made from duplicate copies outside of the 
organizational unit. Any outside request for disclosure shall be 
referred to the appropriate system manager for response.
    (c) Duplicate copies are subject to the same safeguard requirements 
applicable to the system of records.



           Subpart 1212.7--NASA Authority and Responsibilities



Sec. 1212.700  NASA employees.

    (a) Each NASA employee is responsible for adhering to the 
requirements of the Privacy Act and this regulation.
    (b) An employee shall not seek or obtain access to a record in a 
NASA system of records or to copies of any portion of such records under 
false pretenses. Only those employees with an official ``need to know'' 
may seek and obtain access to records pertaining to others.
    (c) Employees shall refrain from discussing or disclosing personal 
information about others which they have obtained because of their 
official need to know such information in the performance of official 
duties.
    (d) To the extent included in a contract which provides for the 
maintenance by or on behalf of NASA of a system of records to accomplish 
a function of NASA, the requirements of this section shall apply to 
contractor employees who work under the contract.



Sec. 1212.701  Assistant Deputy Administrator.

    The Assistant Deputy Administrator is responsible for:
    (a) Making final Agency determinations on appeals (Sec. 1212.400);
    (b) Authorizing exemptions from one or more provisions of the 
Privacy Act for NASA systems of records (See Sec. 1212.500); and,
    (c) Authorizing an extension for making a final determination on an 
appeal (Sec. 1212.400(d)).



Sec. 1212.702  Associate Administrator for Management Systems and Facilities.

    (a) The Associate Administrator for Management Systems and 
Facilities is responsible for the following:
    (1) Providing overall supervision and coordination of NASA's 
policies and procedures under this regulation;

[[Page 87]]

    (2) Approving system notices for publication in the Federal 
Register;
    (3) Assuring that NASA employees and officials are informed of their 
responsibilities and that they receive appropriate training for the 
implementation of these requirments; and,
    (4) Preparing and submitting the biennial report on implementation 
of the Privacy Act to OMB and special reports required under this 
regulation, including establishing appropriate reporting procedures in 
accordance with OMB Circular No. A-130.
    (b) The Associate Administrator for Management Systems and 
Facilities may establish a position of `NASA Privacy Officer,' or 
designate someone to function as such an officer, reporting directly to 
the Associate Administrator for Management Systems and Facilities, and 
delegate to that officer any of the functions described in paragraph (a) 
of this section.



Sec. 1212.703  Headquarters and Field or Component Installations.

    (a) Officials-in-Charge of Headquarters Offices, Directors of NASA 
Field Installations and Officials-in-Charge of Component Installations 
are responsible for the following with respect to those systems of 
records maintained in their organization:
    (1) Avoiding the establishment of new systems of records or new 
routine uses of a system of records without first complying with the 
requirements of this regulation;
    (2) Ensuring that the requirements of this regulation and the 
Privacy Act are followed by employees;
    (3) Ensuring that there is appropriate coordination within NASA 
before a determination is made to disclose information without the 
individual's consent under authority of 5 U.S.C. 552a(b) (See Sec. 
1212.203(g)); and
    (4) Providing appropriate oversight for responsibilities and 
authorities exercised by system managers under their jurisdiction (Sec. 
1212.704).
    (b) Directors of NASA Field Installations and Officials-in-Charge of 
Component Installations or designees may establish a position of 
installation Privacy Officer to assist in carrying out the 
responsibilities listed in paragraph (a) of this section.



Sec. 1212.704  System manager.

    (a) Each system manager is responsible for the following with regard 
to the system of records over which the system manager has cognizance:
    (1) Overall compliance with the ``Privacy Act--NASA Regulations'' 
(NASA Management Instruction (NMI) 1382.17) and the Computer Matching 
Program (NMI 1382.18);
    (2) Ensuring that each person involved in the design, development, 
operation, or maintenance of the system of records is instructed with 
respect to the requirements of this regulation and the possible 
penalties for noncompliance;
    (3) Submitting a request to the Assistant Deputy Administrator for 
an exemption of the system under subpart 1212.5 of this part, setting 
forth in proposed rulemaking form the reasons for the exemption and 
citing the specific provision of the Privacy Act which is believed to 
authorize the exemption;
    (4) After consultation with the Office of the General Counsel or the 
Chief Counsel, making reasonable efforts to serve notice on an 
individual when any record on such individual is made available to any 
person under compulsory legal process when such process becomes a matter 
of public record;
    (5) Making an initial determination on an individual's request to 
correct or amend a record, in accordance with Sec. 1212.302;
    (6) Prior to disclosure of any record about an individual, assuring 
that the record is first reviewed for accuracy, completeness, 
timeliness, and relevance;
    (7) Authorizing disclosures of a record without the individual's 
consent under Sec. 1212.203(g) (1) through (12);
    (8) Responding within the requirements of Sec. 1212.200 to an 
individual's request for information as to whether the system contains a 
record pertaining to the individual;
    (9) Responding to an individual's request for access and copying of 
a record, in accordance with subpart 1212.2 of this part;
    (10) Amending a record under subpart 1212.3 of this part, or filing 
in an individual's record a statement of dispute;
    (11) Preparing an addendum to an individual's statement of dispute 
to be

[[Page 88]]

filed in the individual's records, in accordance with Sec. 1212.401;
    (12) Maintaining disclosure accountings in accordance with 5 U.S.C. 
552a(c) and 14 CFR 1212.203. This includes records disclosed pursuant to 
any computer matching programs;
    (13) Notifying persons to whom a record has been disclosed and for 
which an accounting was made as to disputes and corrections involving 
the record; and
    (14) Developing appropriate safeguards for the system of records in 
accordance with Sec. 1212.605(a).
    (b) Where a system of records has subsystems described in the system 
notice, the subsystem manager will have the responsibilities outlined in 
paragraph (a) of this section. Although the system manager has no line 
authority over subsystem managers, the system manager does have overall 
functional responsibility for the total system, and may issue guidance 
to subsystem managers on implementation of this part. When furnishing 
information for required reports, the system manager will be responsible 
for reporting the entire system of records, including any subsystems.
    (c) Exercise of the responsibilities and authorities in paragraph 
(a) of this section by any system or subsystem managers at a NASA 
Installation shall be subject to any conditions or limitations imposed 
in accordance with Sec. 1212.703 (a)(4) and (b).



Sec. 1212.705  Assistant Administrator for Procurement.

    The Assistant Administrator for Procurement is responsible for 
developing appropriate procurement regulations and procedures under 
which NASA contracts requiring the maintenance of a system of records in 
order to accomplish a NASA function are made subject to the requirements 
of this part.



Sec. 1212.706  Delegation of authority.

    Authority necessary to carry out the responsibilities specified in 
this regulation is delegated to the officials named, subject to any 
conditions or limitations imposed in accordance with this subpart 
1212.7.



    Subpart 1212.8--Failure to Comply With Requirements of This Part



Sec. 1212.800  Civil remedies.

    Failure to comply with the requirements of the Privacy Act and this 
part could subject NASA to civil suit under the provisions of 5 U.S.C. 
552a(g).



Sec. 1212.801  Criminal penalties.

    (a) A NASA officer or employee may be subject to criminal penalties 
under the provisions of 5 U.S.C. 552a(i) (1) and (2).
    (1) Section 552a(i)(1). Any officer or employee of an agency, who by 
virtue of employment or official position, has possession of, or access 
to, agency records which contain individually identifiable information 
the disclosure of which is prohibited by this section or by rules or 
regulations established thereunder, and who knowing that disclosure of 
the specific material is so prohibited, willfully discloses the material 
in any manner to any person or agency not entitled to receive it, shall 
be guilty of a misdemeanor and fined not more than $5,000.
    (2) Section 552a(i)(2). Any officer or employee of any agency who 
willfully maintains a system of records without meeting the notice 
requirements of subsection (e)(4) of this section shall be guilty of a 
misdemeanor and fined not more than $5,000.
    (3) These two provisions apply to NASA civil service employees as 
well as those employees of a NASA contractor with responsibilities for 
maintaining a Privacy Act system of records.
    (b) Section 552a(i)(3). Any person who knowingly and willfully 
requests or obtains any record concerning an individual from an agency 
under false pretenses shall be guilty of a misdemeanor and fined not 
more than $5,000.



PART 1213--RELEASE OF INFORMATION TO NEWS AND INFORMATION MEDIA--Table of Contents




Sec.
1213.100 Scope.
1213.101 Policy.
1213.102 Responsibility.
1213.103 Procedures for issuance of news releases.

[[Page 89]]

1213.104 Procedures for news release coordination and concurrence.
1213.105 Interviews.
1213.106 Audiovisual material.
1213.107 International news releases.
1213.108 Security.

    Authority: 42 U.S.C. 2473(a)(3) and NSDD-84, ``Safeguarding National 
Security Information.''

    Source: 52 FR 45936, Dec. 3, 1987, unless otherwise noted.



Sec. 1213.100  Scope.

    This part 1213 sets forth the policy governing the release of 
information in any form to news and information media. Not included is 
the release of scientific and technical information to scientific and 
technical journals and audiences.



Sec. 1213.101  Policy.

    (a) Consistent with NASA statutory responsibility, NASA will ``* * * 
provide for the widest practicable and appropriate dissemination of 
information concerning its activities and the results thereof, * * *''
    (b) Release of information concerning NASA activities and the 
results will be made promptly, factually and completely. Exceptions 
include that information whch may be exempt from disclosure under the 
``Freedom of Information Act'' (5 U.S.C. 552, as amended) (14 CFR part 
1212). For classified DoD missions on the National Space Transportation 
System (NSTS), release of information concerning NASA activities will be 
restricted by the STS Security Classification Guide. In addition, 
information concerning the survivability/vulnerability of the NSTS may 
be classified for all NSTS operations.
    (c) NASA will respond promptly to queries from the information media 
and industry, and cooperate with contractors in their release of NASA 
related informational material including advertising.
    (d) NASA officials may participate in interviews and speak for the 
Agency in areas of their assigned responsibility.



Sec. 1213.102  Responsibility.

    (a) The Associate Administrator for Public Affairs is responsible 
for the development and overall administration of an integrated 
Agencywide communications program and determines whether the specific 
information is to be released. The Associate Administrator for Public 
Affairs will:
    (1) Direct and coordinate all Headquarters and agencywide public 
information activities.
    (2) Direct and coordinate all agencywide news-oriented audiovisual 
activities.
    (b) In accordance with Sec. 1213.104, the Public Affairs Officers 
assigned to Headquarters Program and Staff Offices are responsible for 
developing plans and coordinating all public information activities 
covering their respective programs at Headquarters and in the field.
    (c) In accordance with Sec. 1213.104, Directors of Field 
Installations, through their Public Affairs Officers, are responsible 
for initiating and obtaining concurrences for information programs and 
public releases issued by their respective installation and component 
installations.
    (d) The requirements of this section do not apply to the Office of 
Inspector General (IG) regarding IG activities.

[52 FR 45936, Dec. 3, 1987, as amended at 56 FR 66787, Dec. 26, 1991]



Sec. 1213.103  Procedures for issuance of news releases.

    (a) All Headquarters news releases will be issued by the Office of 
Public Affairs, Media Services Division.
    (b) Directors of Field Installations, through their Public Affairs 
Officer, may release information for which that Field Installation is 
the primary or sole source, i.e., launch, mission, and planetary 
encounter commentary; telephone recorded messages; status reports; and 
releases of local or regional interest. Release of information that has 
national significance will be coordinated with the Associate 
Administrator for Public Affairs. Material received from contractors 
prior to its public release may be reviewed for technical accuracy at 
the contracting Installation.
    (c) The requirements of this section do not apply to the Office of 
Inspector General regarding IG activities.

[52 FR 45936, Dec. 3, 1987, as amended at 56 FR 66787, Dec. 26, 1991]

[[Page 90]]



Sec. 1213.104  Procedures for news release coordination and concurrence.

    (a) General. All organizational elements of NASA involved in 
preparing and issuing NASA news releases are responsible for proper 
coordination and obtaining concurrences and clearances prior to issuance 
of the news release. Such coordination will be accomplished through the 
Associate Administrator for Public Affairs, NASA Headquarters.
    (b) Headquarters-field. (1) The Headquarters Office of Public 
Affairs will release information after obtaining all necessary 
concurrences and clearances from the appropriate Program or other 
Headquarters Office. Field Installations will obtain clearances from the 
appropriate Institutional Program or other Headquarters Office.
    (2) Headquarters issuance of a news release bearing on a Field 
Installation will be coordinated with the Installation through the 
appropriate Institutional Program Office/Public Affairs Office, 
Associate Administrator for Public Affairs, or Director, Media Services 
Division. If Headquarters is the issuing Agency for a release for which 
the primary source is an Installation, the Office of Public Affairs will 
keep the Installation fully informed.
    (3) If the Office of Public Affairs changes, delays, or cancels a 
release proposed for issuance by a Field Installation, the Installation 
and the appropriate Institutional Program Office affected will be 
notified of the reasons for the action.
    (c) Field-other. A release originating in one field installation 
that involves the activities of another installation (including 
Headquarters) will not be issued until the concurrences of all 
installations and appropriate Institutional Program Offices concerned 
have been obtained. The originating installation is responsible for 
arranging a mutually acceptable release time.
    (d) Simultaneous release. Where a release is to be simultaneously 
issued, whether by Headquarters, a field installation, industry-NASA, or 
university-NASA, it will be so stated on the news release. Simultaneous 
release will be coordinated by the Headquarters Director, Media Services 
Division.
    (e) Date lines. Out-of-town date lines will not be used on releases 
issued by Headquarters except in the case of an advance release of a 
speech text intended for regional distribution in the area where the 
speech will be delivered.
    (f) Exchange of releases. All Agency releases will be exchanged 
electronically with all field installations by the Headquarters 
newsroom. The full text of important releases, regardless of source, 
which may generate unusual interest and queries shall be sent by 
electronic mail or telephoned to all interested installations and 
Headquarters in advance of release time to enable public information 
officers to respond intelligently to queries arising locally.
    (g) Exchange of communication activities. All field installations 
will exchange information with the appropriate Headquarters Public 
Affairs Officers concerning news events and releases. Immediate 
notification will be made to Headquarters and any impacted installation 
of events or situations that will make news, particularly of a negative 
nature.
    (h) The requirements of this section do not apply to the Office of 
Inspector General regarding IG activities.

[52 FR 45936, Dec. 3, 1987, as amended at 56 FR 66787, Dec. 26, 1991]



Sec. 1213.105  Interviews.

    (a) NASA personnel will respond promptly to requests to media 
representatives for information or interviews.
    (b) Normally, requests for interviews with NASA officials will be 
made through the appropriate Public Affairs Office. However, journalists 
will have direct access to those NASA officials they seek to interview.
    (c) Information given to the press will be on an ``on-the-record'' 
basis only and attributable to the person(s) making the remarks. Any 
NASA employee providing material to the press will identify himself/
herself as the source.
    (d) Any attempt by news media representatives to obtain classified 
information will be reported through the Headquarters Office of Public 
Affairs or Installation Public Affairs Office to the Installation 
Security Office. The

[[Page 91]]

knowing disclosure of classified information to unauthorized individuals 
will be cause for disciplinary actions against the NASA employee 
involved.
    (e) Public information volunteered by a NASA official will not be 
considered exclusive to any one media source and will be made available 
to other sources, if requested.
    (f) For a DoD classified operation, all inquiries concerning this 
activity will be responded to by the designated DoD officer.

[52 FR 45936, Dec. 3, 1987, as amended at 56 FR 66788, Dec. 26, 1991]



Sec. 1213.106  Audiovisual material.

    (a) NASA's central repository of audiovisual material will be 
available to the information media and to all NASA installations.
    (b) Field installations will provide NASA Headquarters with:
    (1) Selected prints and original or duplicate negatives of news-
oriented photographs generated within their respective areas.
    (2) Selected color motion picture footage (prints) which, in the 
opinion of the installation, would be appropriate for use as features in 
programs.
    (3) Audio and/or video tapes of significant news developments and 
other events of historical or public information interest.
    (4) For DoD classified operations, all audiovisual material of or 
related to the classified operation will be reviewed and deemed 
releasable by the designated DoD officer.



Sec. 1213.107  International news releases.

    (a) All releases of information involving NASA activities or views 
affecting another country or an international organization require prior 
coordination with the International Relations Division, Office of 
External Relations, through the Public Affairs Officer assigned to that 
division.
    (b) NASA field installations and Headquarters offices will report 
all visits proposed by representatives of foreign news media to the 
Public Affairs Officer for the International Relations Division, NASA 
Headquarters.
    (c) Safeguards intended to control access to classified information, 
materials, or facilities and provisions to protect the NSTS as a 
national resource will not be diminished in providing assistance to 
foreign or U.S. news representatives.



Sec. 1213.108  Security.

    It is the responsibility of each Public Affairs Officer to implement 
the STS Security Classification Guide for each DoD classified operation 
on the NSTS. Guidance for this implementation will be provided in the 
joint NASA and USAF Public Affairs plan for each mission. In addition, 
each NASA installation involved in the NSTS will have information 
concerning the protection of the NSTS as a national resource. This 
category of information, including NSTS survivability/vulnerability 
data, may be classified. Therefore, all questions regarding security 
classification will be resolved by the appropriate security 
classification officer at any NASA installation or by the designated DoD 
security officer for DoD classified information.



PART 1214--SPACE FLIGHT--Table of Contents




 Subpart 1214.1--General Provisions Regarding Space Shuttle Flights of 
        Payloads for Non-U.S. Government, Reimbursable Customers

Sec.
1214.100 Scope.
1214.101 Eligibility for flight of a non-U.S. government reimbursable 
          payload on the Space Shuttle.
1214.102 Definitions.
1214.103 Reimbursement for standard services.
1214.104 Reimbursement for optional services.
1214.105 Apportionment and/or assignment of services.
1214.106 Minor delays.
1214.107 Postponement.
1214.108 Termination.
1214.109 Scheduling.
1214.110 Reflight.
1214.111 Rendezvous services.
1214.112 Patent, data and information matters.
1214.113 Allocation of risk.
1214.114 Provision of services.
1214.115 Standard services.
1214.116 Typical optional services.
1214.117 Launch and orbit parameters for a standard launch.
1214.118 Special criteria for deployable payloads.

[[Page 92]]

1214.119 Spacelab payloads.

  Subpart 1214.2--Reimbursement for Shuttle Services Provided to Civil 
   U.S. Government Users and Foreign Users Who Have Made Substantial 
                      Investment in the STS Program

1214.200 Scope.
1214.201 Definition.
1214.202 Reimbursement policy.
1214.203 Optional reflight guarantee.
1214.204 Patent and data rights.
1214.205 Revisit and/or retrieval services.
1214.206 Damage to payload.
1214.207 Responsibilities.

Appendix A to Subpart 1214.2--Costs for Which NASA Shall Be Reimbursed
Appendix B to Subpart 1214.2--Occupancy Fee Schedule

  Subpart 1214.3--Payload Specialists for Space Transportation System 
                             (STS) Missions

1214.300 Scope.
1214.301 Definitions.
1214.302 Background.
1214.303 Policy.
1214.304 Process.
1214.305 Payload specialist responsibilities.
1214.306 Payload specialist relationship with sponsoring institutions.

            Subpart 1214.4--International Space Station Crew

1214.400 Scope.
1214.401 Applicability.
1214.402 International Space Station crewmember responsibilities.
1214.403 Code of Conduct for the International Space Station Crew.
1214.404 Violations.

  Subpart 1214.5--Mission Critical Space System Personnel Reliability 
                                 Program

1214.500 Scope.
1214.501 Applicability.
1214.502 Definitions.
1214.503 Policy.
1214.504 Screening requirements.
1214.505 Program implementation.

          Subpart 1214.6--Mementos Aboard Space Shuttle Flights

1214.600 Scope.
1214.601 Definitions.
1214.602 Policy.
1214.603 Official Flight Kit (OFK).
1214.604 Personal Preference Kit (PPK).
1214.605 Preflight packing and storing.
1214.606 Postflight disposition.
1214.607 Media and public inquiries.
1214.608 Safety requirements.
1214.609 Loss or theft.
1214.610 Violations.

      Subpart 1214.7--The Authority of the Space Shuttle Commander

1214.700 Scope.
1214.701 Definitions.
1214.702 Authority and responsibility of the Space Shuttle commander.
1214.703 Chain of command.
1214.704 Violations.

           Subpart 1214.8--Reimbursement for Spacelab Services

1214.800 Scope.
1214.801 Definitions.
1214.802 Relationship to Shuttle policy.
1214.803 Reimbursement policy.
1214.804 Services, pricing basis, and other considerations.
1214.805 Unforeseen customer delay.
1214.806 Premature termination of Spacelab flights.
1214.807 Exceptional payloads.
1214.808 Standby payloads.
1214.809 Short-term call-up and accelerated launch.
1214.810 Integration of payloads.
1214.811 Reflight guarantee.
1214.812 Payload specialists.
1214.813 Computation of sharing and pricing parameters.

          Subpart 1214.9--Small Self-Contained Payloads (SSCPs)

1214.900 What does this subpart cover?
1214.901 What is the relationship of this subpart with subparts 1214.1 
          and 1214.2?
1214.902 Definitions.
1214.903 What are the requirements concerning Launch Services Agreements 
          (LSA)?
1214.904 What are the conditions of use for a SSCP?
1214.905 What is NASA's reimbursement policy?
1214.906 When will my payload be scheduled to fly?
1214.907 Will NASA re-fly my payload if something goes wrong (and it's 
          not my fault)?
1214.908 Who gets rights to patents resulting from the payload or to the 
          scientific/research data generated?
1214.909 What if my payload is damaged?
1214.910 What are the standard services NASA provides for my payload?
1214.911 Can I buy optional services for my payload from NASA?
1214.912 Are there special provisions for SSCP participants who already 
          have a signed LSA governed by regulations in effect before 
          April 23, 1999?

Subpart 1214.10 [Reserved]

[[Page 93]]

1214.1000-1214.1004 [Reserved]

  Subpart 1214.11--NASA Astronaut Candidate Recruitment and Selection 
                                 Program

1214.1100 Scope.
1214.1101 Announcement.
1214.1102 Evaluation of applications.
1214.1103 Application cutoff date.
1214.1104 Evaluation and ranking of highly qualified candidates.
1214.1105 Final ranking.
1214.1106 Selection of astronaut candidates.
1214.1107 Notification.

Subparts 1214.12-1214.16 [Reserved]

               Subpart 1214.17--Space Flight Participants

1214.1700 Scope.
1214.1701 Applicability.
1214.1702 Relation to other part 1214 material.
1214.1703 Definitions.
1214.1704 Policy.
1214.1705 Selection of space flight participants.
1214.1706 Program management.
1214.1707 Media and public inquiries.

    Authority: Section 203(c)(1), National Aeronautics and Space Act of 
1958, as amended (42 U.S.C. 2473(c)).



 Subpart 1214.1--General Provisions Regarding Space Shuttle Flights of 
        Payloads for Non-U.S. Government, Reimbursable Customers

    Authority: Section 203(c)(1), National Aeronautics and Space Act of 
1958, as amended (42 U.S.C. 2473(c)).

    Source: 57 FR 4545, Feb. 6, 1992, unless otherwise noted.



Sec. 1214.100  Scope.

    This subpart 1214.1 sets forth general provisions regarding flight 
of Space Shuttle cargo bay payloads for non-U.S. government, 
reimbursable customers. It does not apply to Small Self-Contained 
Payloads flown under the provision of subpart 1214.9 or payloads flown 
on a space-available basis on NASA-provided Hitchiker carriers.



Sec. 1214.101  Eligibility for flight of a non-U.S. government reimbursable payload on the Space Shuttle.

    To be eligible for flight on the Space Shuttle, non-U.S. government, 
reimbursable payloads must meet criteria for use of the Shuttle 
established by U.S. law and public policy. The NASA Administrator will 
determine and/or certify the compliance of the payload with these 
criteria. To qualify for flight on the Space Shuttle, non-U.S. 
government, reimbursable payloads must require the unique capabilities 
of the Shuttle, or be important for either national security or foreign 
policy purposes.



Sec. 1214.102  Definitions.

    (a) Customer. Any non-U.S. government person or entity who, by 
virtue of a contract or other arrangement with NASA, arranges for or 
otherwise provides payloads to be flown on the Shuttle on a reimbursable 
basis.
    (b) Dedicated flight. A shuttle flight flown for a single customer.
    (c) Dedicated flight price. The price established by NASA for a 
dedicated flight that provides the standard services listed in Sec. 
1214.115 for 1 day of single-shift, on-orbit mission operations.
    (d) Jettison. To physically separate all or a portion of a payload 
from the Shuttle after liftoff of the Shuttle without the intent of 
fulfilling the payload operations requirements agreed to by NASA and the 
customer.
    (e) Launch agreement. The primary document between NASA and the non-
U.S. government, reimbursable customer, containing the detailed terms, 
conditions, requirements and constraints under which NASA commits to 
provide launch services.
    (f) Marginal cost. Solely for the purposes of determining the cost 
of a reflight launch, marginal cost is defined as the cost to the U.S. 
Government, as determined by NASA's normal accounting procedures, 
associated with the addition or reduction of one flight in a given U.S. 
government fiscal year.
    (g) Non-U.S. government reimbursable customers are:
    (1) All non-U.S. Government persons or entities paying NASA for 
Shuttle services under this subpart 1214.1; or
    (2) U.S. Government agencies obtaining reimbursable Shuttle services 
for those persons or entities cited in paragraph (g)(1) of this section; 
e.g., the Department of Defense under a Foreign Military sales case.

[[Page 94]]

    (h) Optional services. Those nonstandard services provided at the 
customer's request and with the concurrence of NASA. The price for 
optional services is not included in the standard flight price.
    (i) Payload integration documentation. Documentation developed to 
reflect NASA/customer agreements on payload requirements, payload/
Shuttle interfaces, and ground and flight implementation of the mission. 
Includes the Payload Integration Plan, its Annexes and all related 
documentation.
    (j) Payload length. The maximum length of the payload in the Space 
Shuttle cargo bay at any time during launch, landing, operations, 
deployment, servicing or retrieval. It includes any clearance length 
necessary for items such as dynamic envelope considerations, deployment, 
retrieval, servicing and use of the remote manipulator system.
    (k) Payload weight. The maximum weight of the payload in the Space 
Shuttle cargo bay, including the weight of the payload itself and a pro 
rata share of the weight of any special equipment or materials needed 
for the mission.
    (l) Scheduled launch date. NASA's official then-best-estimate of the 
data of launch. This will be the date of record for all scheduling and 
reimbursement procedures.
    (m) Shared flight. A flight that may be shared by more than one 
customer.
    (n) Shuttle standard flight price. The price for Shuttle standard 
services provided to the customer.
    (o) Standard launch. A launch meeting all the launch and orbit 
criteria defined in Sec. 1214.117.
    (p) Standard services. Those services which are generally made 
available for all customers, which for Space Shuttle are generically 
defined in NASA document NSTS 07700, Volume XIV, and which are included 
in the standard flight price. If the payload uses only a portion of the 
standard services, the standard flight price will not be affected.



Sec. 1214.103  Reimbursement for standard services.

    (a) Establishment of price. NASA will establish, and update as 
appropriate, the standard flight price under this Sec. 1214.1.
    (b) Advance pricing. NASA normally will agree to a standard flight 
price no later than 3 years in advance of launch.
    (c) Price stability. The standard flight price will be fixed, 
subject to the terms of the launch agreement, and subject to escalation 
pursuant to Sec. 1214.103(d), and will be the price set by NASA as of 
the time of signing a launch agreement.
    (d) Escalation of payments. With the exception of payments for 
earnest money, all payments will be escalated according to the U.S. 
Bureau of Labor Statistics Index, ``Private Business Sector, All 
Persons: Productivity, Hourly Compensation, Unit Labor Cost and Prices 
Seasonally Adjusted'' table, ``Compensation, Per Hour,'' column 
published in the U.S. Department of Labor, Bureau of Labor Statistics, 
news release entitled ``Productivity and Costs.''
    (e) Independence of pricing and manifesting. The standard flight 
price for a shared flight payload as computed from 1214.103(g) will be 
independent from the actual payload manifest for a specific shared 
flight.
    (f) Allocation of services. (1) Customers contracting for a 
dedicated flight are eligible for the full standard services, as defined 
in Sec. 1214.115, available on the flight.
    (2) Customers contracting for a standard shared flight meeting the 
criteria of Sec. 1214.117 are eligible for a portion of the standard 
services, as defined in Sec. 1214.115, available on the flight. The 
basis of apportionment will be determined by NASA and will be a function 
of the payload load factor.
    (g) Computation of prices. (1) The Shuttle standard flight price for 
a dedicated flight is the dedicated flight price as defined in Sec. 
1214.102(c).
    (2) The Shuttle standard flight price for a standard shared flight 
is the product of the payload's charge factor and the dedicated flight 
price as defined in Sec. 1214.102(c).
    (3) The computed charge factor for a payload is defined as:
    [GRAPHIC] [TIFF OMITTED] TC14NO91.003
    

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    If the computed charge factor exceeds 1.0, the charge factor will be 
1.0. If the computed charge factor is less than 0.067, the charge factor 
will be 0.067.
    (4) The load factor is defined as the maximum of:
    [GRAPHIC] [TIFF OMITTED] TC14NO91.004
    

where:
    (i) Payload length is as defined in Sec. 1214.102(j);
    (ii) Payload weight is as defined in Sec. 1214.102(k);
    (iii) For those payloads for which NASA has reviewed and accepted a 
NASA Form 1628 (Request for Flight Assignment) and received earnest 
money (if required) prior to (insert date of publication in Federal 
Register), the Shuttle lift capability for a shared flight, standard 
launch will be 29,478 kg. For all other payloads, the lift capability 
for a shared flight, standard launch will be 21,542 kg.
    (h) Payment schedule--(1) Earnest money. Earnest money in the amount 
of $100,000 per payload will be paid to NASA by the customer. The 
earnest money will be paid at the time of submission of a NASA Form 
1628, and will be applied to the first payment made by the customer 
toward the standard flight price, or will be retained by NASA unless 
NASA determines that the payload does not meet the eligibility criteria 
referenced in Sec. 1214.101.
    (2) Payment schedule for standard services. (i) Payment for standard 
services will be made in accordance with the following schedule:

----------------------------------------------------------------------------------------------------------------
                                                                     Percent of price due
                                            --------------------------------------------------------------------
  Number of months before launch flight is                         Months prior to scheduled launch date
                 scheduled                    At time of -------------------------------------------------------
                                              scheduling    33      24      18      12       6       3     Total
----------------------------------------------------------------------------------------------------------------
33 or more.................................  ...........      10      10      15      25      25      15     100
24-32......................................           11  ......      10      15      25      25      15     101
18-23......................................           23  ......  ......      15      25      25      15     103
12-17......................................           42  ......  ......  ......      25      25      15     107
6-11*......................................           73  ......  ......  ......  ......      25      15     113
3-5*.......................................          107  ......  ......  ......  ......  ......      15     122
Less than 3*...............................          122  ......  ......  ......  ......  ......  ......     122
----------------------------------------------------------------------------------------------------------------
*Additional charges pursuant to Sec. 1214.103(h)(2)(ii) also may apply.

    (ii) Unless otherwise agreed to by NASA, for purposes of the payment 
schedule of Sec. 1214.103(h)(2)(i), the percent of price due at the 
time of scheduling will be the cumulative amount due at the time of:
    (A) NASA's initial commitment to the schedule of a newly scheduled 
payload;
    (B) A customer's requested rescheduling of a payload such that it 
will be launched at an earlier date; or
    (C) Rescheduling of a payload postponed at the request of the 
customer or caused by the customer.
    (iii) If the time from a customer's request for initial scheduling 
or rescheduling of a payload is less than 1 year from the launch date 
being requested, and NASA can accommodate the request, NASA may also 
charge the customer any estimated additional cost of providing standard 
services on such a shortened schedule.
    (iv) Normally no charges for standard services will be made after 
the flight, except for a final adjustment for escalation.
    (i) Late payment fees. Customers who do not meet the payment 
schedule defined in Sec. 1214.103(h) will be subject to a late payment 
fee established by NASA in the launch agreement.



Sec. 1214.104  Reimbursement for optional services.

    (a) Pricing basis. To the extent practical, optional services will 
be provided on a fixed-price or fixed-rate basis. If this is not 
practical, the price will be on a governmental cost basis; i.e., the 
actual cost or in certain cases the estimated actual costs.

[[Page 96]]

    (b) Escalation of payments. All payments for optional services 
subject to escalation will be escalated in accordance with the 
provisions of Sec. 1214.103(d).
    (c) Schedules of payments. NASA will establish payment schedules for 
optional services and will incorporate those schedules in the launch 
agreement at the time a particular optional service is agreed to between 
the customer and NASA.
    (d) Late payment fees. Customers who do not make payments by the due 
dates defined by NASA will be subject to a late payment fee established 
by NASA in the launch agreement.



Sec. 1214.105  Apportionment and/or assignment of services.

    (a) Subject to NASA approval, a customer may apportion and/or assign 
Shuttle services to third parties within the payload. No apportionment 
and/or assignment of Shuttle services may take place outside the 
payload.
    (b) Integration of apportioned/assigned payload elements within the 
payload is the responsibility of the customer. Any NASA assistance in 
such integration will be provided as an optional service.
    (c) Customers intending to apportion and/or assign services will so 
designate at the time the launch agreement is signed.



Sec. 1214.106  Minor delays.

    NASA will attempt to accommodate customer requested minor launch 
delays. Such delays will normally be requested just prior to launch. 
Except for potential optional service charges, delays up to 72 hours can 
normally be accommodated at no charge. This 72-hour period is shared by 
all customers on a particular flight. The basis of proration will be 
established in the launch agreement. Delays beyond 72 hours will require 
NASA's approval and will result in an additional charge as established 
in the launch agreement.



Sec. 1214.107  Postponement.

    (a) Provisions of this paragraph apply to postponements requested or 
caused by the customer.
    (b) A customer postponing the flight of a payload will pay a 
postponement fee to NASA. The fee will be computed as a percentage of 
the customer's Shuttle standard flight price and will be based on the 
table below.

------------------------------------------------------------------------
                                                     Postponement fee,
                                                    percent of standard
    Months before scheduled launch date when           flight price
               postponement occurs               -----------------------
                                                   Dedicated     Shared
                                                    flights     flights
------------------------------------------------------------------------
More than 33....................................            0          0
18 or more but less than or equal to 33
    --1st postponement..........................            0          0
    --2nd and subsequent........................            5          5
17 or more but less than 18.....................            6          9
16 or more but less than 17.....................            7         13
15 or more but less than 16.....................            8         17
14 or more but less than 15.....................           10         20
13 or more but less than 14.....................           11         24
12 or more but less than 13.....................           12         28
11 or more but less than 12.....................           13         32
10 or more but less than 11.....................           14         36
9 or more but less than 10......................           15         40
8 or more but less than 9.......................           17         43
7 or more but less than 8.......................           18         47
6 or more but less than 7.......................           19         51
Less than 6.....................................           20         55
------------------------------------------------------------------------

    (c) If at any point, a customer postponement results in a launch 
date more than 12 months later than the original scheduled launch date, 
the standard flight price for the customer's payload may be adjusted by 
NASA to reflect any new standard flight price applicable at the time of 
the postponed launch, if such new price is higher than the originally 
contracted price.
    (d) The payment schedule for postponed flights will be as defined in 
Sec. 1214.103(h)(2).
    (e) Customers postponing the flight of a payload may also be subject 
to new or additional charges for optional services.



Sec. 1214.108  Termination.

    (a) Customers terminating the launch of a payload will pay a 
termination fee for standard services to NASA.
    (1) The termination fee for dedicated flights will be computed as a 
percentage of the Shuttle standard flight price and will be based on the 
table below.

------------------------------------------------------------------------
                                                       Termination fee,
Months before scheduled launch date when termination  percent of Shuttle
                       occurs                           standard flight
                                                             price
------------------------------------------------------------------------
18 or more..........................................                  10
17 or more but less than 18.........................                  11
16 or more but less than 17.........................                  12
15 or more but less than 16.........................                  13
14 or more but less than 15.........................                  15
13 or more but less than 14.........................                  16
12 or more but less than 13.........................                  17

[[Page 97]]

 
11 or more but less than 12.........................                  18
10 or more but less than 11.........................                  19
9 or more but less than 10..........................                  20
8 or more but less than 9...........................                  22
7 or more but less than 8...........................                  23
6 or more but less than 7...........................                  24
Less than 6.........................................                  25
------------------------------------------------------------------------

    (2) The termination fee for shared flights will be the sum of all 
payments previously paid or due for the standard flight price, as 
defined in Sec. 1214.103(h)(2), at the time of termination.
    (b) NASA may establish, in the launch agreement, certain conditions 
under which the customer may terminate a payload launch with reduced 
termination fees if NASA delays the launch of the customer's payload for 
an extended period.
    (c) Customers terminating the flight of a payload may also be 
subject to new or additional charges for optional services.



Sec. 1214.109  Scheduling.

    (a) Establishment of a launch date. (1) NASA will assign a tentative 
launch date for a payload only after NASA's receipt, review and 
acceptance of a customer-submitted NASA Form 1628 requesting flight 
assignment and NASA's receipt of the customer's earnest money.
    (2) NASA's confirmation of a particular launch date will be at the 
time a launch services agreement is signed, normally not later than 36 
months prior to the desired launch date.
    (b) NASA changes to launch date. NASA will attempt to maintain the 
customer's launch date as long as the customer's obligations, as 
established by NASA, are met. However, NASA may revise the launch date 
under those circumstances contained in the launch agreement. If 
practical, NASA launch date changes will be in consultation with the 
customer; however, NASA reserves the unilateral right to make decisions 
with regard to launch schedules.
    (c) Payload delivery. NASA, in consultation with the customer, will 
establish a date for payload delivery to the launch site.
    (d) Reflight scheduling. NASA will attempt to schedule a payload 
reflight at the earliest opportunity, but normally no earlier than 14 
months after a determination is made that a customer is entitled to, and 
in fact requests a reflight.



Sec. 1214.110  Reflight.

    (a) NASA will provide a reflight of a customer's payload under 
conditions defined in the launch agreement. The standard flight price 
for reflights will be based on NASA's marginal cost as defined in Sec. 
1214.102(f). Reflights only apply to dedicated flights and those shared-
flight payloads that can be accommodated on a standard launch as defined 
in Sec. 1214.117.
    (b) Reflights as defined in this Sec. 1214.110 apply only to the 
same payload involved in the launch that necessitated the reflight, or 
to an essentially identical payload with essentially identical 
integration and flight operations requirements.



Sec. 1214.111  Rendezvous services.

    (a) A rendezvous mission involves the rendezvous of the Space 
Shuttle orbiter with an orbiting spacecraft for one or more of the 
following purposes:
    (1) Retrieval and return to Earth of the orbiting spacecraft (or 
part thereof), including a spacecraft deployed earlier on the same Space 
Shuttle flight.
    (2) Exchange of a spacecraft (or part thereof) delivered to orbit on 
a particular Space Shuttle mission for an already orbiting spacecraft 
(or part thereof) and return of already orbiting spacecraft to Earth.
    (3) Revisit of an orbiting spacecraft for purposes such as resupply, 
repair, reboost or inspection.
    (b) Mission operational requirements and associated optional service 
charges and conditions for both dedicated and shared flight rendezvous 
services will be negotiated on a case-by-case basis.



Sec. 1214.112  Patent, data and information matters.

    (a) Patent and data rights. NASA will not acquire rights to 
inventions, patents or proprietary data which may be used in, or arise 
from, activities for which a customer has reimbursed

[[Page 98]]

NASA under the policies set forth herein. However, in certain instances 
in which the NASA Administrator has determined that activities may have 
a significant impact on the public health, safety or welfare, NASA may 
obtain assurances from the customer that the results will be made 
available to the public on terms and conditions reasonable under the 
circumstances.
    (b) Information. All customers will be required to furnish NASA with 
sufficient information to ensure Shuttle safety and NASA's and the U.S. 
Government's continued compliance with law, published policy and the 
U.S. Government's obligations.



Sec. 1214.113  Allocation of risk.

    The U.S. Government will assume no risk for damages to the customer 
resulting from certain activities conducted under the launch agreement 
or to third parties resulting from launch related activities or on-orbit 
operations. The customer will be required to agree to be bound by a 
cross-waiver of liability among the customer, other customers, related 
entities and NASA for all activities under the launch agreement. The 
customer will also be required to purchase third-party liability 
insurance covering launch and on-orbit operations in an amount deemed 
appropriate by NASA.



Sec. 1214.114  Provision of services.

    NASA will provide, solely at its discretion, services to the extent 
consistent with U.S. obligations, law, policy and capability.



Sec. 1214.115  Standard services.

    Standard services for the Space Shuttle are generically defined in 
NASA document NSTS 07700, Volume XIV. The standard services to be 
provided for a specific payload will be agreed to between NASA and the 
customer in the launch agreement and associated payload integration 
documentation. Typical standard services include the following for each 
customer.
    (a) A standard launch that meets the criteria established in Sec. 
1214.117.
    (b) Transportation of the customer's payload in the orbiter cargo 
bay in a location selected by NASA.
    (c) One day of single-shift, on-orbit mission operations.
    (d) A five-person flight crew: commander, pilot and three mission 
specialists.
    (e) Orbiter flight planning services.
    (f) One day of transmission of payload data to compatible receiving 
stations via an Independent Payload Data Stream. (Subject to 
availability, NASA may make excess orbiter instrumentation downlink 
capability available to payloads at no additional charge.)
    (g) Deployment of a free flyer, provided the payload meets all the 
conditions stated in Sec. 1214.118.
    (h) NASA support of selected payload design reviews.
    (i) Prelaunch payload installation, verification and orbiter 
compatibility testing.
    (j) NASA payload safety reviews.



Sec. 1214.116  Typical optional services.

    Typical optional services that may be provided by NASA include the 
following, and will be further defined and limited in payload 
integration documentation agreed upon by NASA and the customer.
    (a) Use of Extended Duration Orbiter (EDO) capability or other 
mission kits to extend basic orbiter capability.
    (b) Extravehicular activity (EVA) services.
    (c) Transportation to orbit of all or a part of the customer's 
payload in other than the orbiter cargo bay.
    (d) Unique payload/orbiter integration and test.
    (e) Payload mission planning services, other than for launch, 
deployment and entry phases.
    (f) Additional time on orbit.
    (g) Payload data processing.
    (h) Flight of payload specialists.
    (i) Transmission of payload data via an Independent Payload Data 
Stream during additional time on orbit.
    (j) Transmission of payload data via a Direct Data Stream.



Sec. 1214.117  Launch and orbit parameters for a standard launch.

    To qualify for the standard flight price, all payloads must meet the 
following launch criteria:
    (a) For dedicated flights:

[[Page 99]]

    (1) Launch from Kennedy Space Center (KSC) into the customer's 
choice of two standard mission orbits: 160 NM circular orbit, 
28.5 inclination (nominal), or 160 NM circular orbit, 
57 inclination (nominal).
    (2) Launch on a date selected by NASA within the scheduling 
constraints specified in the launch agreement.
    (3) Launch at a time, selected by NASA, from a launch window of not 
less than 1 hour (a more restrictive launch window may be provided as an 
optional service).
    (b) For shared flights from KSC to the standard mission orbit of 160 
NM circular orbit, 28.5 inclination (nominal):
    (1) Launch on a date selected by NASA within the scheduling 
constraints specified in the launch agreement.
    (2) Launch at any time of day, selected by NASA.



Sec. 1214.118  Special criteria for deployable payloads.

    To qualify for the standard flight price, deployable payloads must 
meet certain criteria in terms of time of day of launch, and other 
factors. These criteria will be specified in the launch agreement and 
associated payload integration documentation.



Sec. 1214.119  Spacelab payloads.

    (a) Special provisions. This Sec. 1214.119 establishes the special 
provisions for Spacelab services provided to Space Shuttle customers. 
Where designated, provisions of this Sec. 1214.119 supersede those of 
other portions of this document. The following five types of Spacelab 
flights are available to accommodate payload requirements:
    (1) Dedicated-Shuttle Spacelab flight (Ref. Sec. 1214.119(d)(3)).
    (2) Dedicated-pallet flight (Ref. Sec. 1214.119(d)(4)).
    (3) Dedicated-FMDM/MPESS (flexible multiplexer-demultiplexer/
multipurpose experiment support structure) flight (Ref. Sec. 
1214.119(d)(4)).
    (4) Complete-pallet flight (Ref. Sec. 1214.119(d)(5)).
    (5) Shared-element flight (Ref. Sec. 1214.119(d)(6)).
    (b) Definitions--(1) Spacelab elements. Pallets (3-meter segments), 
pressurized modules (long or short), and the FMDM/MPESS (1-meter cross-
bay structure), all as maintained in the NASA-approved Spacelab 
configuration.
    (2) Spacelab standard flight price. The price for standard services 
provided to Spacelab customers. If a customer elects not to use a 
portion of the standard services, the Spacelab standard flight price 
will not be affected. The Spacelab standard flight price is a pro rata 
share of:
    (i) The dedicated flight price as defined in Sec. 1214.102(c);
    (ii) The standard price for use of the selected Spacelab elements; 
and
    (iii) For complete-pallet and shared-element flights:
    (A) The price for 6 extra days on orbit; and
    (B) The price for 7 days of second-shift operation.
    (c) Mandatory use of dedicated-Shuttle Spacelab flight. (1) The 
customer will be required to fly under the provisions of Sec. 
1214.119(d)(3), if the customer requires exclusive use of any of the 
following:
    (i) Pressurized module (long or short).
    (ii) Three pallets in the ``1+1+1'' configuration.
    (iii) Four pallets in the ``2+2'' configuration.
    (2) In the cases cited in paragraph (1)(i) of this section, if the 
customer requests, NASA will attempt to find compatible sharees to fly 
with the customer's payload. If NASA is successful, the customer's 
Shuttle standard flight price will be the greater of:
    (i) The dedicated flight price less reimbursements from sharees 
actually flown; or
    (ii) The computed Shuttle shared-flight price for the customer's 
Spacelab payload.
    (d) Reimbursement for standard services. (1) Customers will 
reimburse NASA an amount equal to the Spacelab standard flight price 
computed according to the following provisions:
    (2) Earnest money. For those customers required to pay earnest money 
in accordance with Sec. 1214.103(h)(1), the total earnest money payment 
per payload for Spacelab payloads (including

[[Page 100]]

Shuttle services) will be either $150,000 or 10 percent of the 
customer's estimated Spacelab standard flight price, whichever is less.
    (3) Dedicated-Shuttle Spacelab flight. (i) A dedicated-Shuttle 
Spacelab flight is a Shuttle flight flown for a single customer who is 
entitled to select the Spacelab elements used on the flight.
    (ii) In addition to the standard services listed in Sec. 
1214.119(j), the following standard services are provided to customers 
of dedicated-Shuttle Spacelab flights and form the basis for the 
Spacelab standard flight price:
    (A) Use of the full standard services of the Shuttle and the 
Spacelab elements selected.
    (B) One day of one-shift on-orbit operations.
    (C) Standard mission destinations consistent with launch criteria as 
defined in Sec. 1214.117.
    (D) The available payload operations time of two NASA-furnished 
mission specialists.
    (iii) Customers contracting for a dedicated-Shuttle Spacelab flight 
will reimburse NASA for standard services an amount that is the sum of:
    (A) The dedicated flight price as defined in Sec. 1214.102(c); and
    (B) The price for the use of all Spacelab elements used (including 
all necessary mission-independent Spacelab equipment).
    (4) Dedicated 3-meter pallets and dedicated FMDM/MPESS. (i) A 
dedicated pallet (or a dedicated FMDM/MPESS) is one that is flown for a 
single customer and includes all Spacelab hardware necessary to permit 
it to be flown on any shared flight as an autonomous payload (e.g., a 
dedicated 3-meter pallet may either be supplied with its own exclusive 
igloo or be flown without an igloo, if it requires only standard Shuttle 
services).
    (ii) In addition to a pro rata share of the standard services listed 
in Sec. 1214.119(j), the following standard services are provided to 
customers of dedicated pallets (or dedicated FMDM/MPESS) and form the 
basis for establishing the Spacelab standard flight price:
    (A) A pro rata share of the standard services listed in Sec. 
1214.115, where the basis for proration is the customer's Shuttle load 
factor as defined in Sec. 1214.119(l)(4)(i) for dedicated pallets and 
in Sec. 1214.119(l)(5)(ii) for a dedicated FMDM/MPESS.
    (B) The exclusive services of the pallet (or FMDM/MPESS) and all 
Spacelab hardware provided to support the pallet (or FMDM/MPESS).
    (C) One day of one-shift on-orbit operations.
    (D) Launch on a shared standard Shuttle flight as defined in Sec. 
1214.117.
    (E) A pro rata share of the on-orbit payload operations time of two 
NASA-furnished mission specialists, where the basis of proration will be 
the customer's Shuttle load factor.
    (iii) Customers contracting for a dedicated-pallet (or FMDM/MPESS) 
flight will reimburse NASA for standard services an amount that is the 
sum of:
    (A) The product of the customer's Shuttle charge factor and the 
dedicated flight price as defined in Sec. 1214.102(c); and
    (B) The price for the use of the pallet (or FMDM/MPESS) selected 
(including all necessary mission-independent Spacelab equipment).
    (5) Complete pallet. (i) A complete Spacelab pallet is one that is 
flown for a single customer, but flies with other Spacelab elements on a 
NASA or NASA-designated Spacelab flight and shares the common standard 
Spacelab services (e.g., shares an igloo with other pallets).
    (ii) In addition to a pro rata share of the standard services listed 
in Sec. 1214.119(j), the following standard services are provided to 
customers of complete pallets and form the basis for the Spacelab 
standard flight price:
    (A) The pallet's pro rata share of standard services listed in Sec. 
1214.115, where the basis of proration will be the customer's Shuttle 
load factor as defined in Sec. 1214.119(l)(6)(i).
    (B) A pro rata share of 7 days of two-shift on-orbit operations, 
where the basis of proration will be the customer's Shuttle load factor.
    (C) Mission destination selected by NASA in consultation with the 
customer.
    (D) Assignment, with the customer's concurrence, to a Spacelab 
flight designated by NASA.

[[Page 101]]

    (E) Launch date established by NASA.
    (F) A pro rata share of the on-orbit payload operations time of two 
NASA-furnished mission specialists and two payload specialists, where 
the basis of proration will be the customer's Shuttle load factor.
    (G) Use of the entire volume above a pallet.
    (iii) Customers contracting for complete-pallet flights will 
reimburse NASA for standard services an amount which is the sum of:
    (A) The product of the customer's Shuttle charge factor and the sum 
of:
    (1) The dedicated flight price as defined in Sec. 1214.102(c).
    (2) The charge for 6 extra days of one-shift on-orbit operations.
    (3) The standard price for additional services required to support a 
second shift of on-orbit operations for 7 days.
    (B) The price for the use of a complete pallet, including all 
necessary mission-independent Spacelab equipment.
    (6) Shared element. (i) A shared element is a Spacelab pallet, FMDM/
MPESS, or module that:
    (A) May be shared by two or more customers on a NASA-designated 
Spacelab flight; and
    (B) Shares common standard services with other Spacelab elements on 
the same flight.
    (ii) In addition to a pro rata share of the standard services listed 
in Sec. 1214.119(j), the following standard services are provided to 
customers of shared elements and form the basis for the Spacelab 
standard flight price:
    (A) For shared pallets, a pro rata share of the standard services 
provided by a pallet. The basis of proration will be the customer's 
Spacelab load fraction as defined in Sec. 1214.119(l)(7)(i)(A).
    (B) For shared modules, a pro rata share of the standard services 
provided by a long module flown on a dedicated-Shuttle Spacelab flight. 
The basis of proration will be the customer's Spacelab load fraction as 
defined in Sec. 1214.119(l)(7)(i)(B). The type of pressurized module 
actually used to meet a customer's requirement for a shared module will 
be determined by NASA subsequent to launch agreement negotiations.
    (C) A pro rata share of the element's share of standard services 
listed in Sec. 1214.115, where the basis for proration will be the 
customer's Spacelab load fraction.
    (D) A pro rata share of 7 days of two-shift on-orbit operations, 
where the basis of proration will be the customer's Shuttle load factor 
as defined in Sec. 1214.119(l)(7)(i).
    (E) Mission destination selected by NASA in consultation with the 
customer.
    (F) Assignment, with the customer's concurrence, to a Spacelab 
flight designated by NASA.
    (G) Launch date established by NASA.
    (H) A pro rata share of the on-orbit operations time of two NASA-
furnished mission specialists, where the basis of proration will be the 
customer's Shuttle load factor.
    (iii) Customers contracting for shared-element flights will 
reimburse NASA for Standard services an amount that is the sum of:
    (A) The product of the customer's Shuttle charge factor and the sum 
of:
    (1) The dedicated flight price as defined in Sec. 1214.102(c);
    (2) The charge for 6 extra days of one-shift on-orbit operations; 
and
    (3) The standard price for additional services required to support a 
second shift of on-orbit operations for 7 days.
    (B) The product of the customer's element charge factor and the 
price for the use of the Spacelab element being used, including all 
necessary mission-independent Spacelab equipment.
    (e) Minor delays. The minor delay provisions of Sec. 1214.106 will 
apply only to those Spacelab payloads whose Shuttle load factor is equal 
to or greater than 0.05.
    (f) Postponement and termination. (1) A customer may postpone the 
flight of a Spacelab payload one time with no additional charge if 
postponement occurs more than 18 months before the scheduled launch 
date.
    (2) Postponement or termination fees for Spacelab payloads will 
consist of the sum of:
    (i) A fee for postponement or termination of the Shuttle launch.
    (ii) A fee for use of the Spacelab elements.

[[Page 102]]

    (3) For Shuttle launch postponement and termination fee customers 
will be governed by the provisions of Sec. 1214.107 or Sec. 1214.108, 
as appropriate.
    (4) The postponement and termination fees for use of the Spacelab 
elements are computed as a percentage of the customer's price for use of 
the Spacelab elements and will be based on the table below. When 
postponement or termination occurs less than 18 months before launch, 
the fees will be computed by linear interpolation using the points 
provided.

------------------------------------------------------------------------
                                                Fee for use of Spacelab
                                                 element(s), percent of
   Months before scheduled launch date when         price for use of
      postponement or termination occurs               element(s)
                                              --------------------------
                                               Postponement  Termination
------------------------------------------------------------------------
     Dedicated Flights, Dedicated Elements, and Dedicated FMDM/MPESS
------------------------------------------------------------------------
 
18 or more...................................           5           10
12...........................................          14           20
3............................................          60           85
0............................................          75          100
----------------------------------------------
Complete Pallets and Shared Elements
------------------------------------------------------------------------
18 or more...................................           5           10
12...........................................          18           80
9............................................          32           95
8 or less....................................          95          100
------------------------------------------------------------------------

    (5) At the time of signing of the launch agreement, NASA will define 
a payload removal cutoff date (relative to the launch date) for each 
Spacelab payload to be flown on a shared flight. A customer may still 
postpone or terminate a flight after the payload's cutoff date; however, 
NASA will not be required to remove the payload before flight.
    (6) Customers postponing or terminating the flight of a payload may 
also be subject to new or additional charges for optional services 
associated with Shuttle or Spacelab support provided by NASA.
    (g) Spacelab reflight. (1) For Spacelab payloads, the provisions of 
Sec. 1214.110 apply.
    [Reserved]
    (h) Premature termination of Spacelab flights. If a dedicated-
Shuttle Spacelab flight, a dedicated-pallet flight or dedicated-FMDM/
MPESS flight is prematurely terminated, NASA will refund the optional 
services charges for planned, but unused, extra days on orbit. If a 
complete-pallet or shared-element flight is prematurely terminated, NASA 
will refund a pro rata share of the charges for planned, but unused, 
extra days on orbit to customers whose payload operations are, in NASA's 
judgment, adversely affected by such premature termination. The basis 
for proration will be the customer's Shuttle load factor.
    (i) Integration of payloads. (1) The customer will bear the cost of 
the following typical Spacelab-payload mission management functions:
    (i) Performing analytical design of the mission.
    (ii) Generating mission requirements and their documentation in the 
Payload Integration Plan (PIP).
    (iii) Providing mission-unique training and payload specialists (if 
appropriate).
    (iv) Physically integrating experiments into racks and/or onto 
pallets.
    (v) Providing payload-unique software for use during ground 
processing, on orbit or in POCC operations.
    (vi) Providing operation support.
    (vii) Ensuring the mission is safe.
    (2) All physical integration (and de-integration) of payloads into 
racks and/or onto pallets will normally be performed at KSC by NASA. 
When the customer provides Spacelab elements, these physical integration 
activities may be done by the customer at a location chosen by the 
customer.
    (3) Except for the restrictions noted in paragraph (i)(2) of this 
section, and the implementation of paragraph (i)(1)(vii), customers 
contracting for dedicated-Shuttle and dedicated-pallet flights may 
perform the Spacelab-payload mission management functions defined in 
paragraph (i)(1) of this section. NASA will assist customers in the 
performance of these functions, if requested. Charges for this service 
will be based on estimated actual costs, or actual costs where 
appropriate, and will be in addition to the price for standard services.
    (4) For complete pallets or shared elements, NASA will normally 
perform the Spacelab-payload mission management functions listed in 
paragraph (i)(1) of this section. Charges for this

[[Page 103]]

service will be based on estimated actual costs, or actual costs where 
appropriate, and will be in addition to the price for standard services.
    (5) Integration of payload entities mentioned in paragraphs (i)(2) 
through (i)(4) of this section with NASA-furnished Spacelab support 
systems and with the Shuttle will be performed by NASA as a standard 
service for all payloads flown on customer-furnished Spacelab elements. 
Customers will be available to participate as required by NASA in these 
levels of integration. Customer equipment will be operated only to the 
extent necessary for interface verification. Customers requiring 
additional payload operation after delivery of the payload to NASA will 
negotiate such operation as an optional service.
    (j) Common standard services for Spacelab payloads. The following 
standard services are common to all Spacelab flights:
    (1) Use of Shuttle \1\ and Spacelab hardware.
---------------------------------------------------------------------------

    \1\ Typical standard Shuttle services repeated for clarity.
---------------------------------------------------------------------------

    (2) Spacelab interface analysis.
    (3) A five-person NASA flight crew consisting of commander, pilot 
and three mission specialists.
    (4) Accommodations for a five-person flight crew.
    (5) Prelaunch integration and interface verification of preassembled 
racks and pallets (Levels III, II and I for NASA-furnished Spacelab 
hardware; Level I only for customer-furnished Spacelab hardware).
    (6) Shuttle \1\ and Spacelab flight planning.
    (7) Payload electrical power.
    (8) Payload environmental control.
    (9) On-board data acquisition and processing services.
    (10) One day of transmission of payload data to compatible receiving 
stations via an Independent Payload Data Stream. (Subject to 
availability NASA may make excess orbiter instrumentation downlink 
capability available to payloads at no additional charge.) \1\
    (11) Use of NASA-furnished standard payload monitoring and control 
facilities.
    (12) Voice communications between on-orbit flight personnel 
operating the customer's payload and a NASA-designated payload 
monitoring and control facility.
    (13) NASA payload safety review.\1\
    (14) NASA support of payload design reviews.\1\
    (k) Typical optional services for Spacelab payloads. The following 
are typical optional Spacelab services.
    (1) Use of special payload support equipment, e.g., instrument 
pointing system.
    (2) Nonstandard mission destination.
    (3) Additional time on orbit.
    (4) Mission-independent training, use of, and accommodations for all 
flight personnel in excess of five.
    (5) Mission-dependent training of all NASA-furnished personnel and 
backups.
    (6) Analytical and/or hands-on integration (and de-integration) of 
the customer's payload into racks and/or onto pallets.
    (7) Unique integration or testing requirements.
    (8) Additional resources beyond the customer's pro rata share.
    (9) Additional experiment time or crew time beyond the customer's 
pro rata share.
    (10) Special access to and/or operation of payloads.
    (11) Customer-unique requirements for: software development for the 
Command and Data Management Subsystem (CDMS) onboard computer, 
configuration of the Payload Operations Control Center (POCC) and/or 
CDMS used during KSC ground processing.
    (12) Extravehicular Activity (EVA) services.
    (13) Payload flight planning services.
    (14) Transmission of Spacelab data contained in the Shuttle OI 
telemetry link to a location other than a NASA-designated monitoring and 
control facility.
    (15) Transmission of payload data via an Independent Payload Data 
Stream during additional time on orbit.
    (16) Transmission of payload data via a Direct Data Stream.
    (17) Level III/II integration of customer-furnished Spacelab 
hardware.

[[Page 104]]

    (l) Computation of sharing and pricing parameters--(1) General. (i) 
Computational procedures as contained in the following subparagraphs 
will be applied as indicated. The procedure for computing Shuttle load 
factor, charge factor and flight price for Spacelab payloads replaces 
the procedure contained in Sec. 1214.103.
    (ii) Shuttle charge factors as derived herein apply to payloads 
meeting the launch and orbit criteria established in Sec. 1214.117. 
Customers will reimburse NASA an optional services fee for flights to 
nonstandard destinations.
    (iii) The customer's total Shuttle charge factor will be the sum of 
the Shuttle charge factors for the customer's individual (dedicated, 
complete or shared) elements, with the limitation that the customer's 
Shuttle charge factor will not exceed 1.0.
    (iv) Customers contracting for pallet-only payloads are entitled to 
locate minimal controls as agreed to by NASA in a pressurized area to be 
designated by NASA. There is no additional charge for this service.
    (v) NASA will, at its discretion, adjust, up or down, the load 
factors and load fractions calculated according to the procedures 
defined in this section. Adjustments will be made for special space or 
weight requirements, which include, but not limited to:
    (A) Sight clearances, orientation or placement limits.
    (B) Clearances for movable payloads.
    (C) Unusual access clearance requirements.
    (D) Clearances extending beyond the bounds of the normal element 
envelope.
    (E) Extraordinary shapes.

The adjusted values will be used as the basis for computing charge 
factors and prorating services.
    (2) Definitions used in computations. (i) Lc=Chargeable 
payload length, m. The total length in the cargo bay occupied by the 
customer's experiment and the Spacelab element(s) used to carry it.
    (ii) Wc=The weight, kg, of the customer's payload and the 
customer's pro rata share of the weight of NASA mission-peculiar 
equipment carried to meet the customer's needs.
    (3) Dedicated-Shuttle Spacelab flight (1-day mission). The total 
reimbursement is as defined in Sec. 1214.119(d)(3)(iii).
    (4) Dedicated-pallet flight (1-day mission). (i) The Shuttle load 
factors, charge factors and nominal payload capacities for dedicated-
pallet flights are shown in the table below. Subject to other Shuttle 
Spacelab structural limits, customers are entitled to use the payload 
weight capability of the pallets as indicated in the table. Payload 
weights in excess of those shown are subject to NASA approval and may 
entail optional services charges.

----------------------------------------------------------------------------------------------------------------
                                      Load Factor                Charge Factor         Nominal Payload Capacity,
                             --------------------------------------------------------             kg
       No. of Pallets                                                                ---------------------------
                               With Igloo       FMDM       With Igloo       FMDM                        FMDM
                                           Configuration               Configuration   With Igloo  Configuration
----------------------------------------------------------------------------------------------------------------
1...........................        0.228         0.189         0.305         0.252         2,325         2,950
2...........................        0.392            NA         0.523            NA         4,470            NA
3-pallet train*.............        0.556            NA         0.742            NA         4,435            NA
2+1 config..................        0.594            NA         0.792            NA         7,750            NA
----------------------------------------------------------------------------------------------------------------
*Three pallets requiring the ``1+1+1'' configuration will be flown on a dedicated-flight basis [See Sec.
  1214.119(c)(1)].

    (ii) Total reimbursement. The customer's total reimbursement is as 
defined in Sec. 1214.119(d)(4)(iii).
    (5) Dedicated FMDM/MPESS flight (1-day mission)--(i) Shuttle charge 
factor. The Shuttle charge factor for dedicated FMDM/MPESS flights is 
defined as:
[GRAPHIC] [TIFF OMITTED] TC09SE91.000

    (ii) Shuttle load factor. (A) The Shuttle load factor is defined as 
the maximum of:
[GRAPHIC] [TIFF OMITTED] TC09SE91.001


or
[GRAPHIC] [TIFF OMITTED] TC09SE91.002


[[Page 105]]


    (B) The minimum value of Lc is based on the element 
length, plus clearances, and is 1.18 m.
    (iii) Total reimbursement. The customer's total reimbursement is as 
defined in Sec. 1214.119(d)(4)(iii).
    (6) Complete pallets (7-day mission). (i) The Shuttle load factor 
and charge factor for a complete pallet are 0.198 and 0.228, 
respectively, and its payload weight capability is 2,583 kg. Subject to 
other Shuttle or Spacelab structural limits, customers are entitled to 
use this payload weight capability. Payload weight in excess of 2,583 kg 
is subject to NASA approval and may entail optional service charges.
    (ii) Total reimbursement. The customer's total reimbursement is as 
defined in Sec. 1214.119(d)(5)(iii).
    (7) Shared elements (7-day mission).
    (i) Spacelab load fractions and Shuttle load factors.
    (A) Pallet. Spacelab load fraction is the greater of:
    [GRAPHIC] [TIFF OMITTED] TC09SE91.003
    

or
[GRAPHIC] [TIFF OMITTED] TC09SE91.004


Shuttle load factor is the greater of:
[GRAPHIC] [TIFF OMITTED] TC09SE91.005


or
[GRAPHIC] [TIFF OMITTED] TC09SE91.006

    (B) Pressurized module. Spacelab load fraction and Shuttle load 
factor are identical and are the greater of:
[GRAPHIC] [TIFF OMITTED] TC09SE91.007


or
[GRAPHIC] [TIFF OMITTED] TC09SE91.008

    (ii) Shuttle charge factors and element charge factors for 
pressurized modules. Shuttle charge factors and element charge factors 
are identical and are defined as follows:

------------------------------------------------------------------------
                                                    The element charge
If the Spacelab load fraction (and Shuttle load     factor and Shuttle
                  factor) is:                     charge factor will be:
------------------------------------------------------------------------
Less than 0.00435..............................                    0.005
0.00435 to 0.87................................   Spacelab load fraction
                                                         divided by 0.87
Greater than 0.87..............................                      1.0
------------------------------------------------------------------------

    (iii) Element charge factors for shared pallets.

------------------------------------------------------------------------
                                                    The element charge
       If the Spacelab load fraction is:             factor will be:
------------------------------------------------------------------------
Less than 0.0189...............................                   0.0218
0.0189 to 0.87.................................   Spacelab load fraction
                                                         divided by 0.87
Greater than 0.87..............................                      1.0
------------------------------------------------------------------------

    (iv) Shuttle charge factors for shared pallets.

------------------------------------------------------------------------
                                                    The Shuttle charge
         If the Shuttle load factor is:              factor will be:
------------------------------------------------------------------------
Less than 0.00375..............................                    0.005
0.00375 to 0.75................................      Shuttle load factor
                                                         divided by 0.75
Greater than 0.75..............................                      1.0
------------------------------------------------------------------------

    (v) Total reimbursement.
    (A) The customer's total reimbursement is as defined in Sec. 
1214.119(d)(6)(iii).
    (B) If a customer contracts for portions of more than one element, 
the charges for the use of the elements will apply individually to each 
element used.
    (vi) Pressurized module experiment volume. Experiment volume in the 
pressurized module is defined to be the sum of the customer's payload 
volume in racks and in the center aisle.

[[Page 106]]

    (A) Rack volume is defined relative to basic Air Transportation Rack 
(ATR) configurations. The customer's rack volume will be defined as the 
volume of one or more rectangular parallelepipeds (rectangular-sided 
boxes) which totally enclose the cuss payload. Width dimensions will be 
either 45.1 or 94.0 centimeters. Height dimensions will be integral 
multiples of 4.45 centimeters. Depth dimensions will be 61.2 or 40.2 
centimeters.
    (B) Center aisle space volume is defined as the volume of a 
rectangular parallelepiped which totally encloses the customer's 
payload. No edge of the parallelepiped will be less than 30 centimeters 
in length.
    (vii) Pressurized module storage volume. Storage volume in the 
pressurized module is defined as the volume of one or more rectangular 
parallelepipeds enclosing the customer's stowed payload. No edge of the 
parallelepiped(s) will be less than 30 centimeters in length.
    (viii) Pallet payload volume. Volume of the customer's pallet-
mounted payload is defined as the volume of a rectangular parallelepiped 
enclosing the pallet payload and customer-dictated mounting hardware. No 
edge of the parallelepiped will be less than 30 centimeters in length.



  Subpart 1214.2--Reimbursement for Shuttle Services Provided to Civil 
   U.S. Government Users and Foreign Users Who Have Made Substantial 
                      Investment in the STS Program

    Source: 42 FR 8631, Feb. 11, 1977, unless otherwise noted.



Sec. 1214.200  Scope.

    This subpart 1214.2 sets forth:
    (a) The policy on reimbursement for Shuttle services which are 
provided by NASA to users (as defined in Sec. 1214.201) under launch 
services agreements, and
    (b) Responsibilities for putting such policy into effect and 
carrying it out.



Sec. 1214.201  Definition.

    For the purpose of this subpart, the term users means:
    (a) For all civil U.S. Government agencies who request Shuttle 
services from NASA, and
    (b) Foreign users who have made substantial investment in the STS 
program, i.e., European Space Agency (ESA), ESA member or observer 
nations participating in Spacelab development, and Canada, when 
conducting experimental science or experimental applications missions 
with no near-term commercial implications.



Sec. 1214.202  Reimbursement policy.

    (a) Features of policy. (1) All users will be charged on a fixed 
price basis; there will be no post-flight charges, except for 
prespecified optional services.
    (2) The price will be based on estimated costs.
    (3) The price will be held constant for flights in the first three 
years of Space Transportation System (STS) operations.
    (4) Payments shall be escalated according to the Bureau of Labor 
Statistics Index for Compensation per hour, Total Private.
    (5) Subsequent to the first three years, the price will be adjusted 
annually to insure that total operating costs are recovered over a 
twelve-year period.
    (6) Pricing incentives are designed to maximize the proper 
utilization of the STS.
    (b) Dedicated flight reimbursements. (1) For the purposes of this 
policy, a dedicated flight is one sold to a single user.
    (2) The policy is established for two distinct phases of Shuttle 
operations. The first phase is through the third full fiscal year of 
Shuttle operations and the second phase consists of nine full fiscal 
years subsequent to the first phase.
    (i) For a dedicated Shuttle flight during the first phase, NASA 
shall be reimbursed in an amount which is a pro-rata share of forecast 
additive costs averaged over the first phase of three years; however, 
the price shall not be less than a pro-rata share of forecast total 
operating costs averaged over both the first and second phases of the 
twelve year Shuttle operation period.
    (ii) For a dedicated Shuttle flight during the second phase, NASA 
shall be reimbursed a pro-rata share of forecast

[[Page 107]]

total operating costs over both phases to insure that total operating 
costs are recovered over the twelve year period.
    (iii) The definition of the costs are specified in this subpart are 
set forth in appendix A to this subpart.
    (iv) Subject to NASA approval, a dedicated flight user may apportion 
and assign STS services to other STS users provided they satisfy STS 
user requirements. The price of integrating additional payloads will be 
negotiated.
    (v) A summary of standard Shuttle services included in the flight 
price is set forth in appendix B to subpart 1214.1.
    (vi) The prices of optional Shuttle services are being developed and 
shall be set forth in the Shuttle Price Book which is being developed. A 
summary of the optional services is set forth in appendix C to subpart 
1214.1.
    (vii) For the user with an experimental, new use of space or first 
time use of space of great public value, the reimbursement to NASA for 
the dedicated, standard Shuttle flight in either the first or second 
phase shall be a pro-rata share of the average twelve year additive 
costs as estimated at the time of negotiations. Programs which qualify 
for this price will be determined by an STS Exceptional Program 
Selection Process. In all cases, the Administrator will be the selection 
official.
    (viii) For dedicated flight users, NASA and the user will identify a 
desired launch date within a period of ninety days three years prior to 
flight. One year prior to the flight, a firm launch and payload delivery 
date will be identified by NASA. The firm launch date will be within the 
first sixty days of the original ninety day period. Launch will occur on 
the firmly scheduled launch date or within a period of thirty days 
thereafter. The payload must be ready to launch for the duration of that 
period.
    (c) Shared flight reimbursements. (1) The price of a shared Shuttle 
flight will be a fraction of the dedicated Shuttle flight price. The 
fraction will be based on the length and weight of the payload and the 
mission destination at the time of contract negotiations. The formula 
for computing the fraction is set forth in appendix D to subpart 1214.1.
    (2) For shared flight users, NASA and the user will identify a 
desired launch date three years prior to flight. Launch will occur 
within a period of ninety days, beginning on the desired launch date. 
One year prior to flight, a payload delivery date and a firm launch date 
will be coordinated among the shared flight users. This firm launch date 
will be within the first thirty days of the original ninety day period. 
The launch will occur on the firmly scheduled launch date or within a 
perod of sixty days thereafter. The payloads must be ready to launch for 
the duration of that period.
    (3) A 20 percent discount on the standard flight price will be given 
to shared flight users who will fly on a space-available (standby) 
basis. NASA will provide launch services within a prenegotiated period 
of one year. Shared flight payloads must be flight deliverable to the 
launch site on the first day of the one year period and sustain that 
condition until delivery to the launch site. The user will be notified 
sixty days prior to the firmly scheduled launch date which has been 
established by NASA. At that time, NASA will also establish a payload 
delivery date. The payload must be available at the launch site on the 
assigned delivery date and ready to launch for a period of sixty days 
after the firmly scheduled launch date.
    (d) Small self-contained payloads. Packages under 200 pounds and 
smaller than five cubic feet which require no Shuttle services (power, 
deployment, etc.), and are for R&D purposes, will be flown on a space-
available basis during both phases of Shuttle operation. The price for 
this service will be negotiated based on size and weight, but will not 
exceed $10,000 in 1975 dollars. A minimum charge of $3,000 in 1975 
dollars will be made. If Shuttle services are required, the price will 
be individually negotiated. Reimbursement to NASA will be made at the 
time the package is scheduled for flight.
    (e) Options. (1) In order to allow the user greater flexibility in 
selecting a launch date, the user may purchase a ``floating launch 
date'' option. At the time of contract execution, the user will begin to 
make payments according to a 33 month reimbursement schedule

[[Page 108]]

for this launching. At any time during Phase 1 or 2, the user may 
exercise this option by informing NASA of his desired launch date for 
this option which will then be negotiated by NASA and the user. This 
launch date must be at least 33 months after the date of the first 
reimbursement payment. If the desired launch date is within one year of 
the date of declaration, the short term call-up option and associated 
fee will apply. If the desired launch is to occur in a year for which a 
new price per flight is in effect, the user will pay the new price. The 
fee for this option is 10 percent of the user's flight price in effect 
at the time of contract execution and is payable at that time. This fee 
will not be applied to the price of the user's flight.
    (2) Options must be exercised for a flight by the end of the second 
phase of operations or the option fee will be retained by NASA.
    (f) Fixed price period and escalation. (1) The price will remain 
constant for flights during the first phase of Shuttle operations. For 
flights during the second phase, the price wil be adjusted on a yearly 
basis, if necessary, to assure revovery of total operating costs over a 
twelve-year period. These adjusted prices will be applicable only to 
agreements executed after the adjustment is made.
    (2) Shuttle services for both phases will be contracted on a fixed 
price basis. The payments in the contract will be escalated to the time 
of the payment using the Bureau of Labor Statistics Index for 
Compensation per hour, Total Private.
    (g) Earnest money. Earnest money shall be paid to NASA prior to 
NASA's accepting a launch reservation. The earnest money required shall 
be $100,000 per payload; however, if the payload is a small self-
contained payload, the earnest money shall be $500.00 per payload. The 
earnest money shall be applied to the first payment for each payload 
made by the customer, or shall be retained by NASA if a launch services 
agreement is not signed.
    (h) Reimbursement schedule. (1) Reimbursement shall be made in 
accordance with the reimbursement schedule contained in this subsection. 
No charges shall be made after the flight, except as negotiated in the 
contract for prespecified extra services. Those users who contract for 
Shuttle services less than three years before the desired launch date 
will be accommodated and will pay on an accelerated basis according to 
the reimbursement schedule.
    (2) Standby payloads. (i) Before the establishment of a firmly 
scheduled launch date, the number of months before launch will be 
computed assuming a launch date at the mid-point of the designated one-
year period.
    (ii) Once the firmly scheduled launch date is established, the user 
shall reimburse NASA to make his payments current according to the 
reimbursement schedule.
    (3) Rembursement schedule.

                           [Percent of price]
------------------------------------------------------------------------
                                                     Months prior to
    Number of months before launch flight is      scheduled launch date
                   scheduled                    ------------------------
                                                 33  27  21  15   9   3
------------------------------------------------------------------------
33 months or more..............................  10  10  17  17  23   23
27 to 32 months................................  ..  21  17  17  23   23
21 to 26 months................................  ..  ..  40  17  23   23
15 to 20 months................................  ..  ..  ..  61  23   23
9 to 14 months.................................  ..  ..  ..  ..  90   23
3 to 8 months..................................  ..  ..  ..  ..  ..  ...
------------------------------------------------------------------------


This schedule holds unless there are offsetting advantages to the U.S. 
Government of an accelerated launch schedule.
    (4) Contracts for Shuttle services made one year or less before a 
flight and up to three months before a flight will be made on a space-
available basis unless short term call-up option is elected.
    (i) Short term call-up option. (1) For flights contracted on year or 
less before launch, but not less than three months before launch, short 
term call-up will be provided to dedicated flight users at the dedicated 
flight prices according to the reimbursement schedule.
    (2) For dedicated flight users requiring short term call-up flights 
less than three months before launch, NASA will provide STS launch 
services on a space-available basis. NASA shall be reimbursed the 
dedication flight price according to the reimbursement schedule plus 
short term call-up additional costs. The additional costs will be based 
on estimated costs to be incurred.

[[Page 109]]

    (3) For shared flights contracted one year or less before launch, 
but more than six months before launch, users may elect the short term 
call-up option. The user shall reimburse NASA the standard shared flight 
price according to the reimbursement schedule plus a load factor-
recovery fee. The load factor-recovery fee is half the difference 
between a dedicated flight price and the user's shared flight price or 
the difference between a dedicated flight price and the total adjusted 
reimbursements from all shared users, whichever is less.
    (4) For shared flights contracted six months or less before launch, 
but more than three months before launch, users may elect the short term 
call-up option. The user shall reimburse NASA the standard share flight 
price according to the reimbursement schedule plus a load factor-
recovery fee which is the difference between a dedicated flight price 
and the total adjusted reimbursement from all shared flight users.
    (5) Shared flights contracted three months or less before launch 
will be flown on a space-available basis. NASA shall be reimbursed the 
shared flight price according to the reimbursement schedule plus short 
term call-up additional costs. These additional charges will be based on 
estimated costs to be incurred.
    (6) For the purposes of this paragraph, adjusted reimbursements is 
defined to be reimbursements assuming all shared users are among those 
defined in Sec. 1214.201.
    (7) The load factor-recovery fee will never be less than zero.
    (8) The load factor-recovery fee is payable upon receipt of NASA's 
billing therefor.
    (j) Accelerated launches. For users who reschedule a launch so that 
it occurs earlier than the planned launch, the user will pay on an 
accelerated reimbursement schedule. The user will reimburse NASA to make 
his payments current on the new accelerated reimbursement schedule. If 
the time from notification of acceleration is less than one year from 
the new launch date, short term call-up reimbursements will also apply.
    (k) Postponements--(1) Non-standby payloads. (i) A user can postpone 
a flight of his payload one time with no additional charge if 
postponement occurs more than one year before launch. For subsequent 
postponed flights more than one year before launch, the user shall 
reimburse NASA a postonement fee of 5 percent of the user's flight 
price. For postponements one year or less before launch, the user shall 
reimburse NASA 5 percent of the user's flight price plus an occupancy 
fee according to the occupancy fee schedule in appendix B.
    (ii) If the postponement of a flight causes the payload to be 
launched in a year for which a different price per flight has been 
established, the new price shall apply if it is higher than the 
originally contracted price.
    (2) Standby payloads. (i) For flights postponed more than six months 
prior to the beginning of the negotiated one-year period, NASA shall 
renegotiate a new one-year period during which launch will occur. No 
additional fee will be imposed.
    (ii) For flights postponed six months or less prior to the beginning 
of the negotiated one-year period, the user shall reimburse NASA 5 
percent of the user's flight price plus an occupancy fee according to 
the occupancy fee schedule set forth in appendix B.
    (3) Postponement fees are payable upon receipt of NASA's billing 
therefor.
    (4) Flights postponed will henceforth be treated as newly scheduled 
launches according to the reimbursement schedule. The number of months 
prior to launch will be taken as the total number or months between the 
date postponement is elected and the new launch date. Short term call-up 
options and associated fees shall apply.
    (5) Minor delays (up to three days) caused by the users will not 
constitute a postponement. No fee will be charged for a minor delay.
    (l) Cancellations--(1) Non-standby payloads. Users who cancel a 
flight more than one year before launch shall reimburse NASA 10 percent 
of the user's flight price. For a cancelled flight one year or less 
before launch, the user shall reimburse NASA 10 percent of the user's 
flight price plus an occupancy fee as set forth in appendix B.

[[Page 110]]

    (2) Standby payloads. (i) Users who cancel a flight more than six 
months prior to the beginning of the negotiated one-year period shall 
reimburse NASA 10 percent of the user's flight price.
    (ii) For a flight cancelled six months or less prior to the 
beginning of the negotiated one-year period, the user shall reimburse 
NASA 10 percent of the user's flight price plus an occupancy fee as set 
forth in appendix B.
    (3) Cancellation fees are payable upon receipt of NASA's billing 
therefor.

[42 FR 8631, Feb. 11, 1977, as amended at 49 FR 17736, Apr. 25, 1984]



Sec. 1214.203  Optional reflight guarantee.

    (a) If reflight insurance is purchased from NASA, NASA guarantees 
one reflight of:
    (1) The launch and development of a free flying payload into a 
Shuttle compatible mission orbit if, through no fault of the user, the 
first launch and deployment attempt is unsuccessful and if the payload 
returns safely to earth or a second payload is provided by the user.
    (2) The launch of an attached payload into its mission orbit if the 
first launch attempt is unsuccessful through no fault of the user, and 
if the payload returns safely to earth or a second payload is provided 
by the user.
    (3) A launch of a Shuttle into a payload mission orbit for the 
purpose of retrieving a payload if the first retrieval attempt is 
unsuccessful through no fault of the user. This guarantee only applies 
if the payload is in a safe retrievable condition as determined by NASA.
    (b) Reflight insurance is not applicable to payloads or upper stages 
placed into orbits other than the Shuttle mission orbit.



Sec. 1214.204  Patent and data rights.

    (a) When accommodating missions under this subpart, i.e., 
experimental science or experimental applications missions for ESA, ESA 
member states or Canada with no near-term commercial implications, NASA 
will obtain for U.S. Governmental purposes rights to inventions, patents 
and data resulting from such missions, subject to the user's retention 
of the rights to first publication of the data for a specified period of 
time.
    (b) The user will be required to furnish NASA with sufficient 
information to verify peaceful purposes and to insure Shuttle safety and 
NASA's and the U.S. Government's continued compliance with law and the 
Government's obligations.



Sec. 1214.205  Revisit and/or retrieval services.

    These services will be priced on the basis of estimated costs. If a 
special dedicated Shuttle flight is required, the full dedicated price 
will be charged. If the user's retrieval requirement is such that it can 
be accomplished on a scheduled Shuttle flight, he will only pay for 
added mission planning, unique hardware or software, time on orbit, and 
other extra costs incurred by the revisit.



Sec. 1214.206  Damage to payload.

    The price does not include a contingency or premium for damage that 
may be caused to a payload through the fault of the U.S. Government or 
its contractors. The U.S. Government, therefore, will assume no risk for 
damage or loss to the user's payload. The users will assume that risk or 
obtain insurance protecting themselves against that risk.



Sec. 1214.207  Responsibilities.

    (a) Headquarters officials. (1) The NASA Comptroller, in 
coordination with the Associate Administrator for Space Flight will:
    (i) Prescribe guidelines, procedures, and other instructions which 
are necessary for estimating costs and setting prices and publishing 
them in the NASA Issuance System, and
    (ii) Review and arrange for the billing of users.
    (2) The Associate Administrator for Space Flight will arrange for:
    (i) Developing estimates for costs and establishing prices in 
sufficient detail to reveal their basis and rationale.
    (ii) Obtaining approval of the NASA Comptroller of such estimates 
and related information prior to the execution of any agreement, and

[[Page 111]]

    (iii) Reviewing of final billings to users prior to submission to 
the NASA Comptroller.
    (b) Field installation officials. The Directors of Field 
Installations responsible for the STS operations will:
    (1) Maintain and/or establish agency systems which are needed to 
identify costs in the manner prescribed by the NASA Comptroller,
    (2) Compile financial records, reports, and related information, and
    (3) Provide assistance to other NASA officials concerned with costs 
and related information.

Appendix A to Subpart 1214.2 of Part 1214--Costs for Which NASA Shall Be 
                               Reimbursed

    Total Operating Costs. Total Operating Costs include all direct and 
indirect costs, excluding costs of composing the use charge. Such costs 
include direct program charges for manpower, expended hardware, 
refurbishment of hardware, spares, propellants, provisions, consumables 
and launch and recovery services. They also include a charge for program 
support, center overhead and contract administration.

    Appendix B to Subpart 1214.2 of Part 1214--Occupancy Fee Schedule

    For a postponed or cancelled dedicated flight, the occupancy fee 
will be zero.
    For a postponed or cancelled shared flight, the occupancy fee will 
be computed according to the computation instructions set forth below. 
If the computation results in an occupancy fee which is less than zero, 
the occupancy fee will be reset to zero.
    For a postponed or cancelled shared flight one year or less, but 
more than six months before launch, the user shall reimburse NASA an 
occupancy fee of half the user's flight price less any adjusted 
reimbursements from other users who contract for the same flight 
subsequent to the postponement or cancellation date.
    For a postponed or cancelled shared flight six months or less before 
launch, the user shall reimburse NASA an occupancy fee of 90% of the 
user's flight price less any adjusted reimbursements from other users 
who contract for the same flight subsequent to the postponement or 
cancellation date.
    For a given shared flight, if the occupancy fee so computed would 
result in total adjusted reimbursements (exclusive of the 5% (10%) 
postponement (cancellation) fee) in excess of the price of a dedicated 
flight, the occupancy fee will be reduced in order to recover the price 
of a dedicated flight.
    In the event that, as a result of the postponement or cancellation, 
the Shuttle is not launched at all for the intended flight, the 
occupancy fee will be zero.
    For purposes of this attachment, adjusted reimbursements is defined 
to be reimbursements assuming all users are among those defined in Sec. 
1214.201.



  Subpart 1214.3--Payload Specialists for Space Transportation System 
                             (STS) Missions

    Source: 54 FR 48587, Nov. 24, 1989, unless otherwise noted.



Sec. 1214.300  Scope.

    (a) This revision of subpart 1214.3 redefines the title of payload 
specialist and sets forth NASA's policy on and process for the 
determination of need, selection, and utilization of payload specialists 
and additional mission specialists to be assigned to a Space 
Transportation System (STS) flight in addition to the standard NASA 
flight crew.
    (b) This subpart does not apply to the selection of crew for the 
Space Station Freedom. It is recognized that the Space Station has 
unique requirements regarding its crew and that a separate, specifically 
tailored policy will need to be developed in the future.



Sec. 1214.301  Definitions.

    (a) Payload specialists. Individuals other than NASA astronauts 
(commanders, pilots, and mission specialists), whose presence is 
required on board the Space Shuttle to perform specialized functions 
with respect to operation of one or more payloads or other essential 
mission activities.
    (b) NASA or NASA-related payload. A specific complement of 
instruments, space equipment, and support hardware, developed by a NASA 
Program Office or by another party with which NASA has a shared 
interest, and carried into space to accomplish a mission or discrete 
activity in space.
    (c) Mission. The performance of a coherent set of investigations or 
operations in space to achieve program goals. A single mission might 
require more than one flight or more than one mission might be 
accomplished on a single flight.

[[Page 112]]

    (d) Mission manager. The official responsible for the implementation 
of the payload portion of an STS flight(s).
    (e) Mission specialist. A career NASA astronaut trained and skilled 
in the operation of STS systems related to payload operations and 
thoroughly familiar with the operational requirements and objectives of 
the payloads with which the mission specialist will fly. The mission 
specialist, when designated for a flight, will participate in the 
planning of the mission and will be responsible for the coordination of 
overall payload/STS interaction. The mission specialist will direct the 
allocation of STS and crew resources to the accomplishment of the 
combined payload objectives during the payload operations phase of the 
flight in accordance with the approved flight plan.
    (f) Investigator Working Group (IWG). A group composed of the 
Principal Investigators, or their representatives, whose primary purpose 
is facilitating or coordinating the development and execution of the 
operational plans of an approved NASA program or reporting the progress 
thereof.
    (g) Payload sponsor. For NASA and NASA-related payloads the payload 
sponsor is the Associate Administrator of the sponsoring Program Office 
whose responsibilities are most closely related to the particular 
scientific or engineering discipline associated with a payload. For all 
other payloads, the payload sponsor is identified by the Associate 
Administrator who contracts with the agency or organization, whether 
foreign or domestic, private-sector or governmental, to fly a payload on 
the STS.
    (h) Unique requirements. The need for a highly specialized or 
unusual technical or professional background or the need for instrument 
operations requiring a highly specialized or unusual background that is 
not likely to be found in the group of mission specialists or cannot be 
attained in a reasonable training period.



Sec. 1214.302  Background.

    (a) The Space Transportation System (STS) has been developed to 
expand the Nation's capabilities to utilize the unique environment of 
space. It provides opportunity for individuals other than career 
astronauts to participate as onboard members of the flight crew under 
specified conditions. The purpose of such participation by these 
individuals is to ensure the achievement of the payload or mission-
related objectives.
    (b) The STS will provide these additional crew members with a 
habitable working environment and support services in such a way as to 
require a minimum of dedicated space flight training, allowing them to 
concentrate their efforts on the accomplishment of their scientific, 
technical, or mission objectives.



Sec. 1214.303  Policy.

    (a) General. (1) The Challenger accident marked a major change in 
the U.S. outlook and policies with respect to the flight of other than 
NASA astronauts. NASA and interested external parties, domestic and 
international, must re-examine previous understandings, expectations, 
and commitments regarding flight opportunities in light of the new 
policies now being enunciated.
    (2) NASA policies and their implementation recognize that:
    (i) Every flight of the Shuttle involves risks;
    (ii) Flight opportunities will now generally be limited to 
professional NASA astronauts and payload specialists essential for 
mission requirements; and
    (iii) Top priority must be given to:
    (A) Establishing, proving, and maintaining the reliability and 
safety of the Shuttle system;
    (B) Timely and efficient reduction of the backlog of high priority 
scientific and national security missions; and maximum utilization of 
the Shuttle capacity for primary and secondary payloads that require 
transportation to or from orbit by the Space Shuttle.
    (3) All Shuttle flights will be planned with a minimum NASA crew of 
five astronauts (commander, pilot, and three mission specialists). When 
payload or other mission requirements define a need and operational 
constraints permit, the crew size can be increased to a maximum of 
seven. Any such additional crew members must be identified at least 12 
months before flight

[[Page 113]]

and be available for crew integration at 6 months.
    (4) NASA policy and terminology are revised to recognize two 
categories of persons other than NASA astronauts, each of which requires 
separate policy treatment. They are:
    (i) Payload specialists, redefined to refer to persons other than 
NASA astronauts (commanders, pilots, and mission specialists), whose 
presence is required onboard the Space Shuttle to perform specialized 
functions with respect to operation of one or more payloads or other 
essential mission activities.
    (ii) Space flight participants, defined to refer to persons whose 
presence onboard the Space Shuttle is not required for operation of 
payloads or for other essential mission activities, but is determined by 
the Administrator of NASA to contribute to other approved NASA 
objectives or to be in the national interest.
    (b) Payload specialists. Payload specialists may be added to Shuttle 
crews when more than the minimum crew size of five is needed and unique 
requirements are involved. In the case of foreign-sponsored missions and 
payloads, the need and requirements for payload specialists will be 
negotiated and mutually agreed between the foreign sponsors and NASA. 
The selection process for additional crew members to meet approved 
requirements will first give consideration to qualified NASA mission 
specialists. When payload specialists are required, they will be 
nominated by the appropriate NASA, foreign, or other designated payload 
sponsor. In the case of NASA or NASA-related payloads, the nominations 
will be based on the recommendations of the appropriate Investigator 
Working Group (IWG).
    (c) Space flight participants. NASA remains committed to the long-
term goal of providing space flight opportunities for persons outside 
the professional categories of NASA astronauts and payload specialists 
when this contributes to approved NASA objectives or is determined to be 
in the national interest. However, NASA is devoting its attention to 
proving the Shuttle system's capability for safe, reliable operation and 
to reducing the backlog of high priority missions. Accordingly, flight 
opportunities for space flight participants are not available at this 
time. NASA will assess Shuttle operations and mission and payload 
requirements on an annual basis to determine when it can begin to 
allocate and assign space flight opportunities for future space flight 
participants, consistent with safety and mission considerations. When 
NASA determines that a flight opportunity is available for a space 
flight participant, first priority will be given to a ``teacher in 
space,'' in fulfillment of space education plans.



Sec. 1214.304  Process.

    (a) Determining the need for additional crew members. The payload 
sponsor will be responsible for recommending the number of addition crew 
members and for establishing the technical or scientific need, the 
selection criteria, uniqueness of qualifications, the proposed training, 
and other requirements for the additional crew members. The payload 
sponsor's requirements for additional crew members, their 
qualifications, and the proposed duration for training will be reviewed 
with and concurred in by the Associate Administrator for Space Flight.
    (b) Selection of additional crew members for NASA and NASA-related 
payloads. After the requirement for additional crew members has been 
established, the IWG will be tasked by the payload sponsor to commence 
the selection process. The IWG review process will include the 
participation of a senior astronaut from the Flight Crew Operations 
Directorate at the Johnson Space Center who will provide operational and 
applicant suitability criteria.
    (1) Prior to the payload sponsor's recommendation for additional 
crew members and at his/her direction, the IWG will have studied the 
requirements of the selected investigations, the number, qualifications, 
training requirements and other requirements of payload specialists, and 
backups necessary to support the payload objectives, and made 
recommendations to the payload sponsor.

[[Page 114]]

    (2) Members of the mission specialist cadre will be considered 
first. The payload mission manager, on behalf of the IWG, will convey 
the selection criteria for the proposed additional crew members to the 
Chief, Astronaut Office. The IWG, the mission manager, and the Astronaut 
Office will coordinate the review of the proposed candidates and the 
mission manager will forward recommendations to the payload sponsor. 
Recommendations from the payload sponsor will be submitted to the 
Associate Administrator for Space Flight for approval.
    (3) If mission specialists meeting the requirements cannot be 
provided because of the uniqueness of requirements or impracticability 
of the resultant training obligation, or if backup payload specialists 
are required, the IWG may then solicit candidate payload specialists 
from outside the career astronaut corps. The solicitation will require, 
as a minimum, that a summary of professional qualifications be submitted 
to the IWG. In addition, a medical history, and the results of the 
physical examination described in paragraph (b)(3)(iii) of this section 
will be required. The IWG will be responsible for:
    (i) Establishing professional and operational criteria for payload 
specialists for specific payloads. The criteria will include willingness 
on the part of the candidate to accept the applicable provisions of 
Sec. 1214.306 and satisfactory completion of a background investigation 
conducted to NASA's standards, as determined by the Director, NASA 
Security Office.
    (ii) Evaluating all candidates using the criteria established.
    (iii) Determining which candidate payload specialists, who meet the 
NASA Class III Space Flight Medical Selection Standards, are deemed best 
professionally qualified. (The preselection phases of the medical 
examination will be conducted at Johnson Space Center by certified 
examiners approved by the Director, Life Sciences Division, NASA 
Headquarters).
    (iv) Submitting its recommendations for payload specialists through 
the mission manager to the payload sponsor who in turn will determine 
final recommendations which will be reviewed with and concurred in by 
the Associate Administrator for Space Flight.
    (4) The payload sponsor and the Associate Administrator for Space 
Flight will advise the Administrator of the payload specialist 
selections.
    (c) Selection of additional crew members for foreign payloads. The 
need and requirements for payload specialists will be negotiated and 
mutually agreed to between the foreign sponsor and NASA. This 
negotiating process will include the participation of a senior astronaut 
from the Flight Crew Operations Directorate at the Johnson Space Center 
who will provide operational and applicant suitability criteria. After 
agreement is reached, the payload sponsor will initiate the selection 
process. Subject to the negotiated agreement, subsequent steps in the 
process will be similar to those described in Sec. 1214.304(b) modified 
as follows:
    (1) The IWG functions will be performed by a selection committee or 
other procedure designated by the payload sponsor.
    (2) The payload sponsor will designate an individual to perform the 
mission manager functions.
    (3) The committee or procedure in paragraph (c)(1) of this section 
and the person named in paragraph (c)(2) of this section will be 
established during the negotiations between the foreign sponsor and 
NASA, consistent with the specific circumstances.
    (4) The payload sponsor will also be responsible for submission to 
NASA by an appropriate authority of written assurance that an inquiry 
has been made into the recommended payload specialist's background and 
suitability on the basis of standards similar to those applied to NASA 
payload specialist candidates and a statement by the selected candidate 
asserting a willingness to accept the applicable provisions of Sec. 
1214.306. These written assurances must be received and accepted by NASA 
before selection and before any NASA training can begin.
    (d) Selection of additional crew members for other payloads. After 
the request for additional crew members is approved, the payload sponsor 
will commence the selection process. The payload sponsor

[[Page 115]]

review process will include the participation of a senior astronaut from 
the Flight Crew Operations Directorate at the Johnson Space Center who 
will provide operational and applicant suitability criteria.
    (1) The payload sponsor will first consider members of the mission 
specialist cadre. A representative of the payload sponsor selection 
committee will convey the selection criteria for the proposed payload 
specialists to the Chief, Astronaut Office, and coordinate on the 
recommendations for mission specialists to satisfy the requirements. The 
recommendations will be submitted to the Associate Administrator for 
Space Flight for approval who will then advise the Administrator of the 
selections.
    (2) If mission specialists meeting the requirements cannot be 
provided because of the uniqueness of qualifications or impracticability 
of the resultant training obligation, the payload sponsor selection 
committee, with concurrence from the payload sponsor and the Associate 
Administrator for Space Flight, may then consider other candidate 
payload specialists. The payload sponsor will be responsible for:
    (i) Establishing professional and operational criteria for payload 
specialists for specific payloads. The criteria will include willingness 
on the part of the candidate to accept the applicable provisions of 
Sec. 1214.306 and satisfactory completion of a background investigation 
conducted to NASA's standards, as determined by the Director, NASA 
Security Office.
    (ii) Evaluating all candidates using the criteria established.
    (iii) Determining which candidate payload specialists, who meet the 
NASA Class III Space Flight Medical Selection Standards, are deemed best 
professionally qualified. (The preselection phases of the medical 
examination will be conducted at the Johnson Space Center by certified 
examiners approved by the Director, Life Sciences Division, NASA 
Headquarters).
    (iv) Submitting its recommendations for payload specialist selection 
to the Associate Administrator for Space Flight for approval.
    (e) Preflight activities for additional crew members. Mission 
specialists serving as additional crew for the payload, once selected, 
will be primarily responsible to the mission manager who, together with 
the IWG (or comparable body designated by the payload sponsor) and the 
Director, Flight Crew Operations, will determine the integrated training 
and work schedules as appropriate to the areas of responsibilities 
outlined in the following paragraphs.
    (1) The IWG for NASA and NASA-related payloads or the Payload 
Sponsor for all other payloads is responsible for defining the training 
necessary for payload elements within its cognizance. The mission 
manager is responsible for the total integrated payload training and 
will assist the IWG as necessary in carrying out the defined training 
activities.
    (2) The Director, Flight Crew Operations, is responsible for 
establishing the training requirements for payload specialists on 
Orbiter, Spacelab, and STS-provided payload support systems as 
appropriate. In order to enhance the crew integration process, the 
additional crew members (payload specialists and additional mission 
specialists) will be based at the Johnson Space Center 6 months prior to 
flight, unless otherwise agreed between the payload sponsor and the 
Director, Flight Crew Operations, Johnson Space Center.
    (3) The payload specialists must be certified for flight by the 
Director, Flight Crew Operations, upon satisfactory completion of all 
required training and demonstrated performance of assigned tasks. 
Certification of the payload specialist's readiness for flight will be 
made to the payload mission manager and will include an assessment by 
the crew commander of the payload specialist's suitability for space 
flight.
    (4) The mission manager is responsible for verifying to the payload 
sponsor that all crew members are properly trained for in-flight payload 
operations.
    (i) The medical program for payload specialists will be continued 
during the preflight period in accordance with the NASA Class III Space 
Flight Medical Selection Standards.

[[Page 116]]

    (ii) If, during the preflight period, the number of additional crew 
members is reduced to fewer than that agreed to, or an additional crew 
member does not meet the certification requirements, the necessary 
reprocessing may be initiated to provide replacements consistent with 
the above described selection process and the STS training requirements.
    (f) Designation of primary and backup payload specialists (when 
required). At an appropriate time designated by the mission manager (not 
later than 9 months prior to flight), the IWG for NASA and NASA-related 
payloads or payload sponsor for all other payloads will recommend which 
payload specialists should be designated as prime and which as backup. 
However, in cases where mission specialists have been selected for the 
payload specialist position(s), they will be considered as primary at 
the time of selection. The recommendations will be forwarded by the 
mission manager to the Program Office which will review the 
recommendations and forward them to the Associate Administrator for 
Space Flight for concurrence. The payload sponsor and the Associate 
Administrator for Space Flight will advise the Administrator of the 
selections.
    (g) Effective date. The described selection process will apply to 
all STS missions for which selections have not been approved prior to 
December 31, 1988.



Sec. 1214.305  Payload specialist responsibilities.

    (a) Relationship with flight crew. The crew commander has overall 
responsibility for crew integration and the safe and successful conduct 
of the mission. With respect to crew and vehicle safety, the commander 
has ultimate responsibility and authority for all assigned crew duties. 
The payload specialist is responsible to the authority of the commander 
and operates in compliance with mission rules and Payload Operation 
Control Center directives. Payload specialists are expected to operate 
as an integral part of the crew and will participate in crew activities 
as specified by the crew commander.
    (b) Operation of payload elements. The payload specialist will be 
responsible for the operation of the assigned payload elements. Onboard 
decisions concerning assigned payload operations will be made by the 
payload specialist. A payload specialist may be designated to resolve 
conflicts between the payload elements and approve such deviation from 
the flight plan as may arise from equipment failures or STS factors. In 
the instance of STS factors, the mission specialist will present the 
available options for the payload-related decisions by the payload 
specialist.
    (c) Operation of STS equipment. The payload specialist will be 
responsible for knowing how to operate certain Obiter systems, such as 
hatches, food, and hygiene systems, and for proficiency in those normal 
and emergency procedures which are required for safe crew operations, 
including emergency egress and bail out. The responsibility for on-orbit 
management of Orbiter systems and attached payload support systems and 
for extravehicular activity and payload manipulation with the Remote 
Manipulator System will rest with the NASA flight crew. The NASA flight 
crew will operate Orbiter systems and standard payload support systems, 
such as Spacelab and Internal Upper Stage systems. With approval of the 
commander, payload specialists may operate payload support systems which 
have an extensive interface with the payload.



Sec. 1214.306  Payload specialist relationship with sponsoring institutions.

    Specialists who are not U.S. Government employees must enter into a 
contractual or other arrangement establishing an obligatory relationship 
with an institution participating in the payload as designated by the 
payload sponsor prior to selection and before entering into training at 
a NASA installation or NASA-designated location. Payload specialists who 
are not otherwise U.S. Government employees will not become U.S. 
Government employees by virtue of being selected as a payload 
specialist. Except as specified in the following paragraphs of this 
section, NASA will not enter into any direct contractual or other 
arrangement with individual payload specialists.

[[Page 117]]

Any exception must be approved by the NASA Administrator.
    (a) Payload specialists who are not citizens of the United States 
will be required to enter into an agreement with NASA in which they 
agree to accept and be governed by specified standards of conduct. Any 
such agreement will be signed on behalf of NASA by the NASA General 
Counsel or designee.
    (b) Payload specialists who are citizens of the United States and 
who are not employees of the U.S. Government, will be required to enter 
into an agreement with NASA in which they agree to accept and be 
governed by specified standards of conduct. Any such agreement will be 
signed on behalf of NASA by the NASA General Counsel or designee.
    (c) Payload specialists who are employed by a branch, department, or 
agency of the U.S. Government other than NASA may (pursuant to the 
exercise of judgment by the NASA General Counsel) be required to enter 
into an agreement with NASA to accept and be governed by specified 
standards of conduct. Any such agreement will be signed on behalf of 
NASA by the NASA General Counsel or designee.



            Subpart 1214.4--International Space Station Crew

    Authority: 42 U.S.C. sections 2455, 2473, and 2475; 18 U.S.C. 799.

    Source: 65 FR 80303, Dec. 21, 2000, unless otherwise noted.



Sec. 1214.400  Scope.

    (a) This subpart sets forth policy and procedures with respect to 
International Space Station crewmembers provided by NASA for flight to 
the International Space Station.
    (b) In order to provide for the safe operation, maintenance of 
order, and proper conduct of crew aboard the International Space 
Station, the January 29, 1998, Agreement Among the Government of Canada, 
Governments of Member States of the European Space Agency, the 
Government of Japan, the Government of the Russian Federation, and the 
Government of the United States of America Concerning Cooperation on the 
Civil International Space Station (hereinafter Agreement), which 
establishes and governs the International Space Station, requires the 
development and approval of a Code of Conduct for International Space 
Station crew. Pursuant to Article 11 of the Agreement, each 
International Space Station partner is obliged to ensure that 
crewmembers which it provides observe the Code of Conduct.



Sec. 1214.401  Applicability.

    This subpart applies to all persons provided by NASA for flight to 
the International Space Station, including U.S. Government employees, 
uniformed members of the Armed Services, U.S. citizens who are not 
employees of the U.S. Government, and foreign nationals.



Sec. 1214.402  International Space Station crewmember responsibilities.

    (a) All NASA-provided International Space Station crewmembers are 
subject to specified standards of conduct, including those prescribed in 
the Code of Conduct for the International Space Station Crew, set forth 
as Sec. 1214.403. NASA-provided International Space Station crew 
members may be subject to additional standards and requirements, as 
determined by NASA, which will be made available to those NASA-provided 
crewmembers, as appropriate.
    (1) NASA-provided International Space Station crewmembers who are 
not citizens of the United States will be required to enter into an 
agreement with NASA in which they agree to comply with specified 
standards of conduct, including those prescribed in the Code of Conduct 
for the International Space Station Crew (Sec. 1214.403). Any such 
agreement will be signed on behalf of NASA by the NASA General Counsel 
or designee.
    (2) NASA-provided International Space Station crewmembers who are 
citizens of the United States but are not employees of the U.S. 
Government will be required to enter into an agreement with NASA in 
which they agree to comply with specified standards of conduct, 
including those prescribed in the Code of Conduct for the International 
Space Station Crew (Sec. 1214.403). Any such agreement will be

[[Page 118]]

signed on behalf of NASA by the NASA General Counsel or designee.
    (3) NASA-provided International Space Station crewmembers who are 
employed by a branch, department, or agency of the U.S. Government may, 
as determined by the NASA General Counsel, be required to enter into an 
agreement with NASA to comply with specified standards of conduct, 
including those prescribed in the Code of Conduct for the International 
Space Station Crew (Sec. 1214.403). Any such agreement will be signed 
on behalf of NASA by the NASA General Counsel or designee.
    (b) All NASA-provided personnel on board the International Space 
Station are additionally subject to the authority of the International 
Space Station Commander and shall comply with Commander's orders and 
directions.



Sec. 1214.403  Code of Conduct for the International Space Station Crew.

    The Code of Conduct for the International Space Station Crew, which 
sets forth minimum standards for NASA-provided International Space 
Station crewmembers, is as follows:

        Code of Conduct for the International Space Station Crew

                             I. Introduction

                              A. Authority

    This Code of Conduct for the International Space Station (ISS) crew, 
hereinafter referred to as Crew Code of Conduct (CCOC), is established 
pursuant to:
    (1) Article 11 (Crew) of the intergovernmental Agreement Among the 
Government of Canada, Governments of Member States of the European Space 
Agency, the Government of Japan, the Government of the Russian 
Federation, and the Government of the United States of America 
Concerning Cooperation on the Civil International Space Station (the 
IGA) signed by the Partner States on January 29, 1998; and
    (2) Article 11 (Space Station Crew) of the Memoranda of 
Understanding between, respectively, the National Aeronautics and Space 
Administration of the United States of America (NASA) and the Canadian 
Space Agency (CSA), NASA and the European Space Agency (ESA), NASA and 
the Government of Japan (GOJ), and NASA and the Russian Space Agency 
(RSA) Concerning Cooperation on the Civil International Space Station 
(the MOU's), which require, inter alia, that the crew Code of Conduct be 
developed by the partners.

                          B. Scope and Content

    The partners have developed and approved this CCOC to: establish a 
clear chain of command on-orbit; establish a clear relationship between 
ground and on-orbit management; and establish a management hierarchy; 
set forth standards for work and activities in space, and, as 
appropriate, on the ground; establish responsibilities with respect to 
elements and equipment; set forth disciplinary regulations; establish 
physical and information security guidelines; and define the ISS 
Commander's authority and responsibility, on behalf of all the partners, 
to enforce safety procedures, physical and information security 
procedures and crew rescue procedures for the ISS. This CCOC and the 
disciplinary policy referred to in Section IV shall not limit the 
application of Article 22 of the IGA. This CCOC succeeds the NASA-RSA 
Interim Code of Conduct, which was developed pursuant to Article 11.2 of 
the MOU between NASA and RSA to cover early assembly prior to other 
partners' flight opportunities.
    This CCOC sets forth the standards of conduct applicable to all ISS 
crewmembers during preflight, on-orbit, and post-flight activities, 
(including launch and return phases). ISS crewmembers are subject to 
additional requirements, such as the ISS Flight Rules, the disciplinary 
policy, and requirements imposed by their Cooperating Agency or those 
relating to the Earth-to-Orbit Vehicle (ETOV) transporting an ISS 
crewmember. Each ISS crewmember has a right to know about such 
additional requirements. ISS crewmembers will also abide by the rules of 
the institution hosting the training, and by standards and requirements 
defined by the Multilateral Crew Operations Panel (MCOP), the 
Multilateral Space Medicine Board (MSMB) and the Multilateral Medical 
Operations Panel (MMOP). Each ISS crewmember will be informed by the 
Cooperating Agency providing him or her of the responsibilities of ISS 
crewmembers under the IGA, the MOU's and this CCOC. Further, each ISS 
crewmember will be educated by the Cooperating Agency providing him or 
her through the crew training curriculum and normal program operations 
as to ISS program rules, operational directives and management policies. 
Completion of postflight activities shall not affect an ISS crewmember's 
continuing obligations under Section V of this CCOC.

                             C. Definitions

    For the purposes of the CCOC:
    (1) ``Cooperating Agency'' means NASA, CSA, ESA, Rosaviakosmos 
(formerly RSA) and, in the case of Japan, the Science and Technology 
Agency of Japan (STA) and, as

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appropriate, the National Space Development Agency of Japan (NASDA), 
assisting agency to STA.
    (2) ``Crew Surgeon'' means a Flight Surgeon assigned by the MMOP to 
any given expedition. He or she is the lead medical officer and carries 
primary responsibility for the health and well-being of the entire ISS 
crew.
    (3) ``Disciplinary policy'' means the policy developed by the MCOP 
to address violations of the CCOC and impose disciplinary measures.
    (4) ``ETOV'' means Earth-to-Orbit Vehicle travelling between Earth 
and the ISS.
    (5) ``Flight Director'' means the Flight Director in control of the 
ISS.
    (6) ``Flight Rules'' means the set of rules used by the Cooperating 
Agencies to govern flight operations.
    (7) ``ISS crewmembers'' means any person approved for flight to the 
ISS, including both ISS expedition crew and visiting crew, beginning 
upon assignment to the crew for a specific and ending upon completion of 
the postflight activities related to the mission.

                          II. General Standards

                 A. Responsibilities of ISS Crewmembers

    ISS Crewmembers shall comply with the CCOC. Accordingly, during 
preflight, on-orbit, and postflight activities, they shall comply with 
the ISS Commander's orders, all Flight and ISS program Rules, 
operational directives, and management policies, as applicable. These 
include those related to safety, health, well-being, security, and other 
operational or management matters governing all aspects of ISS elements, 
equipment, payloads and facilities, and non-ISS facilities, to which 
they have access. All applicable rules, regulations, directives, and 
policies shall be made accessible to ISS crewmembers through appropriate 
means, coordinated by the MCOP.

                       B. General Rules of Conduct

    ISS Crewmembers' conduct shall be such as to maintain a harmonious 
and cohesive relationship among the ISS crewmembers and an appropriate 
level of mutual confidence and respect through an interactive, 
participative, and relationship-oriented approach which duly takes into 
account the international and multicultural nature of the crew and 
mission.
    No ISS crewmember shall, by his or her conduct, act in a manner 
which results in or creates the appearance of: (1) Giving undue 
preferential treatment to any person or entity in the performance of ISS 
activities; and/or (2) adversely affecting the confidence of the public 
in the integrity of, or reflecting unfavorably in a public forum on, any 
ISS partner, partner state or Cooperating Agency.
    ISS crewmembers shall protect and conserve all property to which 
they have access for ISS activities. No such property shall be altered 
or removed for any purpose other than those necessary for the 
performance of ISS duties. Before altering or removing any such 
property, ISS crewmembers shall first obtain authorization from the 
Flight Director, except as necessary to ensure the immediate safety of 
ISS crewmembers or ISS elements, equipment, or payloads.

                           C. Use of Position

    ISS crewmembers shall refrain from any use of the position of ISS 
crewmember that is motivated, or has the appearance of being motivated, 
by private gain, including financial gain, for himself or herself or 
other persons or entities. Performance of ISS duties shall not be 
considered to be motivated by private gain. Furthermore, no ISS 
crewmember shall use the position of ISS crewmember in any way to 
coerce, or give the appearance of coercing, another person to provide 
any financial benefit to himself or herself or other persons or 
entities.

                    D. Mementos and Personal Effects

    Each ISS crewmember may carry and store mementos, including flags, 
patches, insignia, and similar small items of minor value, onboard the 
ISS, for his or her private use, subject to the following:
    (1) mementos are permitted as a courtesy, not an entitlement; as 
such they shall be considered as ballast as opposed to a payload or 
mission requirement and are subject to manifest limitations, on-orbit 
stowage allocations, and safety considerations;
    (2) mementos may not be sold, transferred for sale, used or 
transferred for personal gain, or used or transferred for any commercial 
or fundraising purpose. Mementos which, by their nature, lend themselves 
to exploitation by the recipients, or which, in the opinion of the 
Cooperating Agency providing the ISS crewmember, engender questions as 
to good taste, will not be permitted.
    An ISS crewmember's personal effects, such as a wristwatch, will not 
be considered mementos. Personal effects of any nature may be permitted, 
subject to constraints of mass/volume allowances for crew personal 
effects, approval of the ISS crewmember's Cooperating Agency, and 
approval of the transporting Cooperating Agency and considerations of 
safety and good taste.
    If a Cooperating Agency carries and stores items onboard the ISS in 
connection with separate arrangements, these items will not be 
considered mementos of the ISS crewmembers.

[[Page 120]]

   III. Authority and Responsibilities of the ISS Commander, Chain of 
Command and Succession Onorbit; Relationship Between Ground and On-Orbit 
                               Management

         A. Authority and Responsibilities of the ISS Commander

    The ISS Commander, as an ISS crewmember, is subject to the standards 
detailed elsewhere in this CCOC, in addition to the command-specific 
provisions set forth below:
    The ISS Commander will seek to maintain a harmonious and cohesive 
relationship among the ISS crewmembers and an appropriate level of 
mutual confidence and respect through an interactive, participative, and 
relationship-oriented approach which duly takes into account the 
international and multicultural nature of the crew and mission.
    For avoidance of doubt, nothing in this Section shall affect the 
ability of the MCOP to designate the national of any Partner State as an 
ISS Commander.

             (1) During Preflight and Postflight Activities

    The ISS Commander is the leader of the crew and is responsible for 
forming the individual ISS crewmembers into a single, integrated team. 
During preflight activities, the ISS Commander, to the extent of his or 
her authority, leads the ISS crewmembers through the training curriculum 
and mission-preparation activities and seeks to ensure that the ISS 
crewmembers are adequately prepared for the mission, acting as the 
crew's representative to the ISS program's training, medical, 
operations, and utilization authorities. During postflight activities, 
the ISS Commander coordinates as necessary with these authorities to 
ensure that the ISS crewmembers complete the required postflight 
activities.

                     (2) During On-Orbit Operations

                               (a) General

    The ISS Commander is responsible for and will, to the extent of his 
or her authority and the ISS on-orbit capabilities, accomplish the 
mission program implementation and ensure the safety of the ISS 
crewmembers and the protection of the ISS elements, equipment, or 
payloads.

                        (b) Main Responsibilities

    The ISS Commander's main responsibilities are to: (1) Conduct 
operations in or on the ISS as directed by the Flight Director and in 
accordance with the Flight Rules, plans and procedures; (2) direct the 
activities of the ISS crewmembers as a single, integrated team to ensure 
the successful completion of the mission; (3) fully and accurately 
inform the Flight Director, in a timely manner, of the ISS vehicle 
configuration, status, commanding, and other operational activities on-
board (including off-nominal or emergency situations); (4) enforce 
procedures for the physical and information security of operations and 
utilization data; (5) maintain order; (6) ensure crew safety, health and 
well-being including crew rescue and return; and (7) take all reasonable 
action necessary for the protection of the ISS elements, equipment, or 
payloads.

                         (c) Scope of Authority

    During all phases of on-orbit activity, the ISS Commander, 
consistent with the authority of the Flight Director, shall have the 
authority to use any reasonable and necessary means to fulfill his or 
her responsibilities. This authority, which shall be exercised 
consistent with the provisions of Sections II and IV, extends to: (1) 
the ISS elements, equipment, and payloads; (2) the ISS crewmembers; (3) 
activities of any kind occurring in or on the ISS; and (4) data and 
personal effects in or on the ISS where necessary to protect the safety 
and well-being of the ISS crewmembers and the ISS elements, equipment, 
and payloads. Any matter outside the ISS Commander's authority shall be 
within the purview of the Flight Director.
    Issues regarding the Commander's use of such authority shall be 
referred to the Flight Director as soon as practicable, who will refer 
the matter to appropriate authorities for further handling. Although 
other ISS crewmembers may have authority over and responsibility for 
certain ISS elements, equipment, payloads, or tasks, the ISS Commander 
remains ultimately responsible, and solely accountable, to the Flight 
Director for the successful completion of the activities and the 
mission.

               B. Chain of Command and Succession On-orbit

    (1) The ISS Commander is the highest authority among the ISS 
crewmembers on-orbit. The MCOP will determine the order of succession 
among the ISS crewmembers in advance of flight, and the Flight Rules set 
forth the implementation of a change of command.
    (2) Relationship of the ISS Commander to ETOV and Other Commanders
    The Flight Rules define the authority of the ETOV Commander, the 
Rescue Vehicle Commander, and any other commanders, and set forth the 
relationship between their respective authorities and the authority of 
the ISS Commander.

C. Relationship Between the ISS Commander (On-Orbit Management) and the 
                   Flight Director (Ground Management)

    The Flight Director is responsible for directing the mission. A 
Flight Director will be in charge of directing real-time ISS operations 
at all time. The ISS Commander,

[[Page 121]]

working under the direction of the Flight Director and in accordance 
with the Flight Rules, is responsible for conducting on-orbit operations 
in the manner best suited to the effective implementation of the 
mission. The ISS Commander, acting on his or her own authority, is 
entitled to change the daily routine of the ISS crewmembers where 
necessary to address contingencies, perform urgent work associated with 
crew safety and the protection of the ISS elements, equipment or 
payloads, or conduct critical flight operations. Otherwise, the ISS 
Commander should implement the mission as directed by the Flight 
Director. Specific roles and responsibilities of the ISS Commander and 
the Flight Director are described in the Flight Rules. The Flight Rules 
outline decisions planned in advance of the mission and are designed to 
minimize the amount of real-time discussion required during mission 
operations.

                      IV. Disciplinary Regulations

    ISS crewmembers will be subject to the disciplinary policy developed 
and revised as necessary by the MCOP and approved by the Multilateral 
Coordination Board (MCB). The MCOP has developed an initial disciplinary 
policy which has been approved by the MCB. The disciplinary policy is 
designed to maintain order among the ISS crewmembers during preflight, 
on-orbit and postflight activities. The disciplinary policy is 
administrative in nature and is intended to address violations of the 
CCOC. Such violations may, inter alia, affect flight assignments as an 
ISS crewmember. The disciplinary policy does not limit a Cooperating 
Agency's right to apply relevant laws, regulations, policies, and 
procedures to the ISS crewmembers it provides, consistent with the IGA 
and the MOU's.

             V. Physical and Information Security Guidelines

    The use of all equipment and goods to which ISS crewmembers have 
access shall be limited to the performance of ISS duties. Marked or 
otherwise identified as export controlled data and marked proprietary 
data obtained by an ISS crewmember in the course of ISS activities shall 
only be used in the performance of his or her ISS duties. With respect 
to data first generated on-board the ISS, the ISS crewmembers will be 
advised by the appropriate Cooperating Agency or by the data owner or 
provider through that Cooperating Agency as to the proprietary or 
export-controlled nature of the data and will be directed to mark and 
protect such data and to continue such protection for as long as the 
requirements for such protection remain in place. Additionally, ISS 
crewmembers shall act in a manner consistent with the provisions of the 
IGA and the MOU's regarding protection of operations data, utilization 
data, and the intellectual property of ISS users. They shall also comply 
with applicable ISS program rules, operational directives, and 
management policies designed to further such protections.
    Personal information about ISS crewmembers, including all medical 
information, private family conference, or other private information, 
whether from verbal, written, or electronic sources, shall not be used 
or disclosed by other ISS crewmembers for any purpose, without the 
consent of the affected ISS crewmember, except as required for the 
immediate safety of ISS crewmembers or the protection of ISS elements, 
equipment, or payloads. In particular, all personal medical information, 
whether derived from medical monitoring, investigations, or medical 
contingency events, shall be treated as private medical information and 
shall be transmitted in a private and secure fashion in accordance with 
procedures to be set forth by the MMOP. Medical data which must be 
handled in this fashion includes, for example, biomedical telemetry, 
private medical communications, and medical investigation data. Nothing 
in this paragraph shall be interpreted to limit an ISS crewmember's 
access to all medical resources aboard the ISS, to ground-based medical 
support services, or to his or her own medical data during preflight, 
on-orbit, and postflight activities.

                VI. Protection of Human Research Subjects

    No research on human subjects shall be conducted which could, with 
reasonable foresight, be expected to jeopardize the life, health, 
physical integrity, or safety of the subject.
    No research procedures shall be undertaken with any ISS crewmember 
as a human subject without: (1) written approval by the Human Research 
Multilateral Review Board (HRMRB) and (2) the full written and informed 
consent of the human subject. Each such approval and consent shall be 
obtained prior to the initiation of such research, and shall fully 
comply with the requirements of the HRMRB. The HRMRB is responsible for 
procedures for initiation of new experiments on-orbit when all consent 
requirements have been met, but the signature of the human subject 
cannot be obtained; explicit consent of the human subject will 
nonetheless be required in all such cases. Subjects volunteering for 
human research protocols may at their own discretion, and without 
providing a rationale, withdraw their consent for participation at any 
time, without prejudice, and without incurring disciplinary action. In 
addition, approval or consent for any research may be revoked at any 
time, including after the commencement of the research, by: the HRMRB, 
the Crew Surgeon, the

[[Page 122]]

Flight Director, or the ISS Commander, as appropriate, if the research 
would endanger the ISS Crew Member or otherwise threaten the mission 
success. A decision to revoke consent by the human subject or approval 
by the other entities listed above will be final.



Sec. 1214.404  Violations.

    This subpart is a regulation within the meaning of 18 U.S.C. 799, 
and whoever willfully violates, attempts to violate, or conspires to 
violate any provision of this subpart or any order or direction issued 
under this subpart may be cited for violating title 18 of the U.S. Code 
and could be fined or imprisoned not more than 1 year, or both.



  Subpart 1214.5--Mission Critical Space System Personnel Reliability 
                                 Program

    Source: 55 FR 53289, Dec. 28, 1990, unless otherwise noted.



Sec. 1214.500  Scope.

    This subpart 1214.5 establishes a program designed to ensure that 
personnel assigned to mission critical positions/duties meet the 
screening requirements outlined in Sec. 1214.504 of this part.



Sec. 1214.501  Applicability.

    (a) This regulation applies to civil service and contractor 
personnel at NASA Headquarters and field installations who work in 
activities that are vital to the safety and success of mission critical 
space systems.
    (b) The provisions of this regulation apply to all civil service and 
contractor personnel assigned to mission critical positions/duties with 
the exception of the personnel addressed in Sec. 1214.501(c) of this 
part. This includes command and decision making personnel as well as 
technicians.
    (c) This regulation does not include flight crew or payload 
specialists. They are covered by NASA Management Instruction (NMI) 33304 
(14 CFR part 1214, subpart 1214.11), ``NASA Astronaut Candidate 
Recruitment and Selection Program.''
    (d) This regulation applies to Space Station Freedom International 
Partners in that the certification requirements in Sec. 1214.505(f) of 
this part apply to foreign personnel in mission critical positions/
duties.



Sec. 1214.502  Definitions.

    (a) Mission Critical Space Systems. The Space Shuttle and other 
critical space systems, including Space Station Freedom, designated 
Expendable Launch Vehicles (ELV's), designated payloads, Shuttle Carrier 
Aircraft and other designated resources that provide access to space. 
The Director of each NASA Installation will designate areas associated 
with these systems that are mission critical space systems areas.
    (b) Mission Critical Positions/Duties. Positions/duties which, if 
performed in a faulty, negligent, or malicious manner, could jeopardize 
mission critical space systems and/or delay a mission. While this 
regulation establishes suitability screening requirements which, if met, 
will allow unescorted access to mission critical space areas, compliance 
with the requirements does not authorize unescorted access to classified 
areas by Personnel Reliability Program (PRP) personnel who do not have 
security clearances.
    (c) Medical Authority. A NASA civil service or contract physician/
psychiatrist responsible for maintaining medical records, providing 
results of medical evaluations, and interpreting evaluations as they 
relate to reliable performance of mission-critical duties. The medical 
authority will coordinate evaluations with the investigatory authority.
    (d) Investigatory Authority. A NASA civil service or contract 
individual responsible for reviewing court, law enforcement (Civil, DOD, 
NASA, other Federal), and other official records and NASA screening 
plans/procedures records to provide evaluations, recommendations, and 
guidance to NASA organizations, supervisors, and PRP adjudicators on 
issuing, denying, or revoking eligibility for mission critical 
positions/duties.
    (e) Certification. The determination that an employee assigned to 
duties as described in Sec. 1214.505 of this part, is qualified to 
perform those duties, and

[[Page 123]]

that this employee has been found reliable in accordance with the 
adjudication guidelines set forth in Attachment B of NMI 8610.13.\1\
---------------------------------------------------------------------------

    \1\ Copies may be obtained from NASA Headquarters (Code NA-2), 
Washington, DC 20546.
---------------------------------------------------------------------------



Sec. 1214.503  Policy.

    (a) The Space Shuttle and the Space Station Freedom are included in 
the NASA National Resource Protection Program as delineated in NMI 
8610.22, ``National Resource Protection Program.'' \2\ The Space Shuttle 
and the Space Station Freedom provide a capability to support a wide 
range of scientific applications and commercial, defense, and 
international uses. Since they will contribute significantly to ensuring 
a scientifically, technologically, and economically strong and secure 
nation, program reliability, operational and safety considerations 
require that stringent measures be taken to provide for the protection 
of the systems. In addition to the Space Shuttle and the Space Station 
Freedom, designated ELV's, designated payloads, Shuttle Carrier Aircraft 
and other designated resources which provide the same critical access to 
space or the ability to accomplish critical objectives in space are 
considered to constitute valued national resources.
---------------------------------------------------------------------------

    \2\ See footnote 1 to Sec. 1214.502(e).
---------------------------------------------------------------------------

    (b) Measures to ensure this protection are:
    (1) Special physical security provisions as provided in NMI 
8610.22.\3\
---------------------------------------------------------------------------

    \3\ See footnote 1 to Sec. 1214.502(e).
---------------------------------------------------------------------------

    (2) Procedures to ensure that personnel assigned to mission critical 
positions/duties meet screening requirements, as set forth in Sec. 
1214.504 of this part prior to unescorted access to areas where mission 
critical space systems are located.



Sec. 1214.504  Screening requirements.

    (a) Only those persons who are certified under the PRP will have 
unescorted access to mission critical space systems areas, be assigned 
to, employed in, or retained in mission critical positions/duties. While 
this regulation provides for unescorted access to mission critical space 
systems areas, it does not preclude the need for escorting of PRP 
personnel who do not have security clearances in classified areas. The 
certification will be based on an evaluation of screening data which is 
to be undertaken by a trained evaluator using evaluation guidance and 
criteria contained in Federal Personnel Manual (FPM) chapter 731 and 
Attachment B (Adjudication Guidelines) of NMI 8610.13.\4\ The need for 
impartial and consistent evaluation of data based on a set of standards 
is considered paramount to the successful implementation of this 
program.
---------------------------------------------------------------------------

    \4\ See footnote 1 to Sec. 1214.502(e).
---------------------------------------------------------------------------

    (b) Determination of suitability for assignment to mission critical 
positions/duties will be made on the basis of the following criteria:
    (1) Supervisory nomination (per requirements of Sec. 1214.505(c) of 
this part) and assurance of ability to perform mission critical duties 
as evidenced by performance during training and while on the job.
    (2) Medical evaluation (for cause only) by NASA designated medical/
psychiatric authority consistent with:
    (i) The guidelines and requirements of the NASA Occupational Health 
Division as required to ensure adequate health for competent and 
reliable performance; and
    (ii) Information developed by testing, review and other screening 
regarding an individual's health, drug or alcohol abuse, or other 
factors which may reflect adversely on his or her cognizance, judgement, 
and ability to act reliably. Such information shall be considered 
``cause'' within the meaning of this subsection.
    (iii) All information obtained by medical or Employee Assistance 
Program evaluation is subject to federal and state statutes and 
regulations pertaining to the privacy and confidentiality of patient/
client information.
    (3) Evaluation by a NASA-designated investigatory authority 
including a review of the results of any National Agency Check 
(including a name check of the Federal Bureau of Investigation (FBI) 
fingerprint records) completed within the past 5 years. When the 
National Agency Check indicates that a more extensive investigation has 
been

[[Page 124]]

completed, the results of that investigation will also be reviewed.
    (4) Local agency checks as appropriate.
    (5) A review of the PRP candidate's personnel employment records.
    (6) A review of the Inspector General case files.
    (c) Information acquired during the screening process will be 
protected in a manner consistent with the provisions of the Privacy Act 
and other pertinent laws and regulations.



Sec. 1214.505  Program implementation.

    (a) The Director of each NASA Installation will designate mission 
critical space systems areas.
    (b) NASA installations will identify positions/duties subject to 
this regulation and will identify all civil service and contractor 
personnel assigned to these positions/duties. The number of persons so 
identified must be the absolute minimum necessary to meet operational 
requirements.
    (c) Each NASA installation to which this regulation is applicable 
will establish:
    (1) A suitability certification system including a designated 
certifying official to ensure that the screening requirements of this 
regulation are met. Adjudication Guidelines (Attachment B of NMI 
8610.13) \5\ provides a baseline for each installation to consider in 
formulating a certification approach. The screening/evaluation plans and 
procedures formulated at each installation will be approved by 
Headquarters (Office of Safety and Mission Quality (Code Q) and 
appropriate Program Associate Administrators) before implementation.
---------------------------------------------------------------------------

    \5\ See footnote 1 to Sec. 1214.502(e).
---------------------------------------------------------------------------

    (2) A management review process to validate the objectivity of 
individual suitability certification determinations and to ensure that 
reassignments or other personnel actions taken pursuant to this 
regulation are fair and in consonance with applicable personnel policies 
and procedures.
    (3) An adequate training program for certifying officials, 
supervisors, adjudicators, and other installation personnel approved by 
Headquarters Code Q before implementation.
    (4) Each NASA installation will maintain a roster of installation 
adjudicators. Directors of the Installations will approve appointment of 
adjudicators.
    (d) Supervisors will:
    (1) Review for reliability and nominate personnel whose duties 
require certification under the PRP.
    (2) Certify that the PRP candidate holds current licenses, skill 
training certificates, and other documentation issued as required by 
applicable directives.
    (3) Brief PRP candidates and rebrief PRP personnel on the needs and 
intent of the PRP.
    (4) Monitor and continually evaluate personnel for steady reliable 
performance and notify the certifying official if changes occur which 
may compromise the safety and reliability of mission critical space 
systems.
    (e) NASA Headquarters Office of Safety and Mission Quality (Code Q) 
will act as the Office of Primary Responsibility (OPR) for PRP policy 
and oversight (periodic review). The certification of Headquarters 
personnel will be carried out by the Office of Headquarters Operations 
(Code D) in accordance with Sec. 1214.505 of this part.
    (f) Foreign representatives requiring access to mission critical 
space systems or having the need to assume mission critical positions/
duties (as defined in Sec. 1214.502 of this part) pursuant to 
international agreements also require certification under this program. 
NASA will accept certifications from foreign agencies following review 
under the NASA Headquarters process (Sec. 1214.505(e) of this part), if 
a written agreement has been reached with the foreign sponsoring agency 
whereby NASA recognizes the foreign agency's process as equivalent to 
its own. Such agreements will be negotiated by the International 
Relations Division (Code XI) with the concurrence of the NASA 
Headquarters Office of Safety and Mission Quality (Code Q) and the 
Program Office responsible for the program to which such access is 
sought. The intent of the certification process is that foreign 
personnel are screened as thoroughly as are U.S. citizens who have

[[Page 125]]

access to mission critical space systems areas or who have the need to 
assume mission critical duties.
    (g) NASA will accept certifications from other Federal agenices, 
departments, and offices following review under the NASA Headquarters 
process (Section 1214.505(e) of this part), if a written agreement has 
been reached whereby NASA recognizes that process as equivalent to its 
own. Such agreements will be negotiated by the NASA Headquarters Office 
of Safety and Mission Quality (Code Q) and the Program Office 
responsible for the program to which such access is sought. A security 
clearance to access classified material is not sufficient to meet the 
certification requirements of this regulation.



          Subpart 1214.6--Mementos Aboard Space Shuttle Flights

    Authority: Pub. L. 85-568, 72 Stat. 426 (42 U.S.C. 2473(c)).

    Source: 56 FR 31074, July 9, 1991, unless otherwise noted.



Sec. 1214.600  Scope.

    This subpart establishes policy, procedures, and responsibilities 
for selecting, approving, packing, storing, and disposing of mementos 
carried on Space Shuttle flights.



Sec. 1214.601  Definitions.

    (a) Mementos. Flags, patches, insignia, medallions, minor graphics, 
and similar items of little commercial value, especially suited for 
display by the individuals or groups to whom they have been presented.
    (b) Official Flight Kit (OFK). A container, approximately 0.057 
cubic meters (2 cubic feet) in size, reserved for carrying official 
mementos of NASA and other organizations aboard Space Shuttle flights. 
No personal items will be carried in the OFK.
    (c) Personal Preference Kit (PPK). A container, approximately 12.82 
centimeters x 20.51 centimeters x 5.13 centimeters 
(5[min][min]x8[min][min]x2[min][min]) in size, separately assigned to 
each individual accompanying a Space Shuttle flight for carrying 
personal mementos during the flight.



Sec. 1214.602  Policy.

    (a) Premise. Mementos are welcome aboard Space Shuttle flights. 
However, they are flown as a courtesy--not as an entitlement. The 
Associate Administrator for Space Flight is free to make exceptions to 
this accommodation without explanation. Moreover, mementos are ballast 
not payload. They can be reduced or eliminated (by the Deputy Director, 
Space Shuttle Program, Johnson Space Center) for weight, volume, or 
other technical reasons without reference to higher authority.
    (b) Constraints. Mementos to be carried on Space Shuttle flights 
must be approved by the Associate Administrator for Space Flight and are 
stowed only in an OFK or a PPK. Mementos will not be carried within 
payload containers, including Get-Away Specials, or in any other 
container or locker aboard the Space Shuttle, other than within the 
designated OFK or PPK.
    (c) Economic Gain. Items carried in an OFK or a PPK will not be 
sold, transferred for sale, used or transferred for personal gain, or 
used or transferred for any commercial or fund-raising purpose. Items 
such as philatelic materials and coins that, by their nature, lend 
themselves to exploitation by the recipients, or create problems with 
respect to good taste; or that are large, bulky, or heavy items (in the 
context of the OFK's size, as indicated in Sec. 1214.601(b) of this 
part) will not be approved for flight.



Sec. 1214.603  Official Flight Kit (OFK).

    (a) Purpose. The OFK on a particular flight enables NASA, developers 
of NASA sponsored payloads, NASA's external payload customers, other 
Federal agencies, researchers, aerospace contractors, and counterpart 
institutions of friendly foreign countries to utilize mementos as awards 
and commendations or preserve them in museums or archives. The courtesy 
is also extended to other organizations outside the aerospace community, 
such as state and local governments, the academic community, and 
independent business entities. In the latter case, it is customary to 
fly only one item for the requesting organization to be used for display 
purposes.

[[Page 126]]

    (b) Limitations. In addition to Sec. 1214.602(c) of this part, U.S. 
national flags will not be flown as mementos except by U.S. Government 
sponsors.
    (c) Approval of Contents. At least 60 days prior to the launch of a 
Space Shuttle flight, an authorized representative of each organization 
desiring mementos to be carried on the flight in the OFK must submit a 
letter or request describing the item(s) to be flown and the intended 
purpose or distribution. Letters should be directed to the cognizant 
NASA office as follows:
    (1) Space Shuttle customers/users of any nature, to the Director of 
Transportation Services, Code MC, NASA Headquarters, Washington, DC 
20546.
    (2) Foreign organizations/individuals, and Department of Defense 
organizations/individuals (both other than as a Space Shuttle customer) 
and other Federal agencies to the Associate Administrator of External 
Relations, Code X, NASA Headquarters, Washington, DC 20546. Upon receipt 
of all requests, the cognizant offices will review and forward data to 
the Associate Director, Code AC, Johnson Space Center, Houston, TX 
77058.
    (3) All others (aerospace companies, state and local governments, 
the academic community, and non-space-related businesses) may send 
requests directly to the Associate Director, Code AC, Johnson Space 
Center, Houston, TX 77058. In the event OFK requests, on a particular 
flight, exceed OFK capability, priority consideration may be given to 
those entities having payloads on that flight. The listing of the 
proposed OFK contents for each flight is prepared at the Johnson Space 
Center and forwarded to the Associate Administrator for Space Flight 
approximately 30 days prior to launch for approval.



Sec. 1214.604  Personal Preference Kit (PPK).

    (a) Purpose. The PPK enables persons accompanying Space Shuttle 
flights to carry personal items for use as mementos. Only those 
individuals actually accompanying such flights (astronaut crew members, 
payload specialists, and space flight participants) may request 
authorization to carry personal items as mementos. These items must be 
carried in individually assigned PPK's.
    (b) Limitations. The contents of a PPK must be limited to 20 
separate items, with a total weight of 0.682 kilograms (1.5 pounds). 
Each item is allocated for a different recipient and distributed 
accordingly. The volume of a PPK must be contained in a 12.82 
centimeters x 20.51 centimeters x 5.13 centimeters 
(5[min][min]x8[min][min]x2[min][min]) bag provided by NASA. Increases in 
these limitations will be authorized only by the Associate Administrator 
for Space Flight.
    (c) Approval of Contents. At least 60 days before the scheduled 
launch of a Space Shuttle flight, each person assigned to the flight who 
desires to carry items in a PPK must submit a proposed list of items and 
their recipients to the Associate Director, Johnson Space Center. The 
Associate Director will review the requests for compliance with this 
subpart and submit the crew members' PPK lists through supervisory 
channels to the Associate Administrator for Space Flight for approval. A 
signed copy of the Associate Administrator for Space Flight's approval 
will be returned to the Director, Johnson Space Center, for appropriate 
distribution.



Sec. 1214.605  Preflight packing and storing.

    (a) Items intended for inclusion in OFK's or PPK's must arrive at 
the Johnson Space Center, Code AC, at least 45 days prior to the flight 
on which they are scheduled in order for them to be listed on the cargo 
manifest, packaged, weighed, and stowed aboard the Orbiter. Items must 
arrive at the Johnson Space Center prior to the 45-day limit even if the 
Associate Administrator for Space Flight's approval is still pending. 
Items not approved by the Associate Administrator for Space Flight will 
be returned to the requesting individual/organization.
    (b) The Associate Director, Johnson Space Center, is responsible for 
the following:
    (1) Securing the items while awaiting the launch on which they are 
manifested.
    (2) Packaging, weighing, and stowing the items according to the 
manifests

[[Page 127]]

approved by the Associate Administrator for Space Flight.



Sec. 1214.606  Postflight disposition.

    The Associate Director, Johnson Space Center, will:
    (a) Receive and inventory all items flown in the OFK and PPK's 
following each Shuttle flight.
    (b) Return the contents of the PPK's to the persons who submitted 
them.
    (c) Return all other flown items to the submitting organizations 
with an appropriate letter of certification.
    (d) Retain and secure mementos flown by the Agency for future use.



Sec. 1214.607  Media and public inquiries.

    (a) Official Flight Kit. Information on the contents of OFK's will 
be routinely released to the media and to the public upon their request, 
but only after the contents have been approved by the Associate 
Administrator for Space Flight.
    (b) Personal Preference Kit. Information on the contents of PPK's 
will be routinely released to the media and to the public upon their 
request immediately following postflight inventory.
    (c) Responsibility for Release of Information. The Director of 
Public Affairs, Johnson Space Center, is responsible for the prompt 
release of information on OFK and PPK contents.



Sec. 1214.608  Safety requirements.

    The contents of OFK's and PPK's must meet the requirements set forth 
in NASA Handbook 1700.7, ``Safety Policy and Requirements for Payloads 
Using the Space Transportation System (STS).''



Sec. 1214.609  Loss or theft.

    (a) Responsibility. The National Aeronautics and Space 
Administration will not be responsible for the loss or theft of, or 
damage to, items carried in OFK's or PPK's.
    (b) Report of Loss or Theft. Any person who learns that an item 
contained in an OFK or a PPK is missing shall immediately report the 
loss to the Johnson Space Center Security Office and the NASA Inspector 
General.



Sec. 1214.610  Violations.

    Any item carried in violation of the requirements of this subpart 
shall become the property of the U.S. Government, subject to applicable 
Federal laws and regulations, and the violator may be subject to 
disciplinary action, including being permanently prohibited from use of, 
or, if an individual, from flying aboard the Space Shuttle or any other 
manned spacecraft of the National Aeronautics and Space Administration.



      Subpart 1214.7--The Authority of the Space Shuttle Commander

    Authority: Pub. L. 85-588, 72 Stat. 426 (42 U.S.C. 2473, 2455; 18 
U.S.C. 799); Art. VIII, TIAS 6347 (18 U.S.T. 2410).

    Source: 45 FR 14845, Mar. 7, 1980, unless otherwise noted.



Sec. 1214.700  Scope.

    This subpart establishes the authority of the Space Shuttle 
commander to enforce order and discipline during all flight phases of a 
Shuttle flight to take whatever action in his/her judgment is necessary 
for the protection, safety, and well-being of all personnel and on-board 
equipment, including the Space Shuttle elements and payloads. During the 
final launch countdown, following crew ingress, the Space Shuttle 
commander has the authority to enforce order and discipline among all 
on-board personnel. During emergency situations prior to liftoff the 
Space Shuttle commander has the authority to take whatever action in 
his/her judgment is necessary for the protection or security, safety, 
and well-being of all personnel on board.

[56 FR 27899, June 18, 1991]



Sec. 1214.701  Definitions.

    (a) Space Shuttle Elements consists of the Orbiter, an External 
Tank, two Solid Rocket Boosters, Spacelab, Upper Stage Boosters (Solid 
Spinning Upper Stage and Interim Upper Stages) and others as specified 
in NASA Management Instruction 8040.9.
    (b) The flight crew consists of the commander, pilot, and mission 
specialist(s).
    (c) A flight is the period from launch to landing of a Space 
Shuttle--a single round trip. (In the case of a forced

[[Page 128]]

landing the Space Shuttle commander's authority continues until a 
competent authority takes over the responsibility for the Orbiter and 
for the persons and property aboard.)
    (d) The flight-phases consist of launch, in orbit, deorbit, entry, 
landing, and postlanding.
    (e) A payload is a specific complement of instruments, space 
equipment, and support hardware/software carried into space to 
accomplish a scientific mission or discrete activity.
    (f) Personnel on board refers to those astronauts or other persons 
actually in the Orbiter or Spacelab during any flight phase of a Space 
Shuttle flight (including any persons who may have transferred from 
another vehicle) and including any persons performing extravehicular 
activity associated with the mission.

[45 FR 14845, Mar. 7, 1980, as amended at 56 FR 27899, June 18, 1991]



Sec. 1214.702  Authority and responsibility of the Space Shuttle commander.

    (a) During all flight phases of a Space Shuttle flight, the Space 
Shuttle commander shall have the absolute authority to take whatever 
action is in his/her discretion necessary to:
    (1) Enhance order and discipline,
    (2) Provide for the safety and well being of all personnel on board, 
and
    (3) Provide for the protection of the Space Shuttle elements and any 
payload carried or serviced by the Space Shuttle.

The commander shall have authority throughout the flight to use any 
reasonable and necessary means, including the use of physical force, to 
achieve this end.
    (b) The authority of the commander extends to any and all personnel 
on board the Orbiter including Federal officers and employees and all 
other persons whether or not they are U.S. nationals.
    (c) The authority of the commander extends to all Space Shuttle 
elements, payloads, and activities originating with or defined to be a 
part of the Space Shuttle mission.
    (d) The commander may, when he/she deems such action to be necessary 
for the safety of the Space Shuttle elements and personnel on board, 
subject any of the personnel on board to such restraint as the 
circumstances require until such time as delivery of such individual or 
individuals to the proper authorities is possible.

[45 FR 14845, Mar. 7, 1980, as amended at 56 FR 27900, June 18, 1991]



Sec. 1214.703  Chain of command.

    (a) The Commander is a career NASA astronaut who has been designated 
to serve as commander on a particular flight, and who shall have the 
authority described in Sec. 1214.702 of this part. Under normal flight 
conditions (other than emergencies or when otherwise designated) the 
Space Shuttle commander is responsible to the Flight Director, Johnson 
Space Center, Houston, TX.
    (b) The pilot is a career NASA astronaut who has been designated to 
serve as the pilot on a particular flight and is second in command of 
the flight. If the commander is unable to carry out the requirements of 
this subpart, then the pilot shall succeed to the duties and authority 
of the commander.
    (c) Before each flight, the other flight crew members (Mission 
Specialists) will be designated by the Director of Flight Operations, 
Johnson Space Center, Houston, TX, in the order in which they will 
assume the authority of the commander under this subpart in the event 
that the commander and pilot are both not able to carry out their 
duties.
    (d) The determinations, if any, that a crew member in the chain of 
command is not able to carry out his or her command duties and is, 
therefore, to be relieved of command, and that another crew member in 
the chain of command is to succeed to the authority of the commander, 
will be made by the Director of the Johnson Space Center.

[45 FR 14845, Mar. 7, 1980, as amended at 47 FR 3095, Jan. 22, 1982; 56 
FR 27900, June 18, 1991]



Sec. 1214.704  Violations.

    (a) All personnel on board a Space Shuttle flight are subject to the 
authority of the commander and shall conform to his/her orders and 
direction as authorized by this subpart.

[[Page 129]]

    (b) This regulation is a regulation within the meaning of 18 U.S.C. 
799, and whoever willfully violates, attempts to violate, or conspires 
to violate any provision of this subpart or any order or direction 
issued under this subpart shall be fined not more than $5,000 or 
imprisoned not more than 1 year, or both.

[45 FR 14845, Mar. 7, 1980, as amended at 56 FR 27900, June 18, 1991]



           Subpart 1214.8--Reimbursement for Spacelab Services

    Source: 50 FR 30809, July 30, 1985, unless otherwise noted.



Sec. 1214.800  Scope.

    This subpart 1214.8 establishes the special reimbursement policy for 
Spacelab services provided to Space Transportation System (STS) 
customers governed by the provisions of subpart 1214.1 or subpart 
1214.2. It applies to flights occurring in the second phase of STS 
operations (U.S. Government fiscal years 1986, 1987, and 1988). The 
following five types of Spacelab flights are available to accommodate 
payload requirements:
    (a) Dedicated-Shuttle Spacelab flight [Ref. Sec. 1214.804(e)].
    (b) Dedicated-pallet flight [Ref. Sec. 1214.804(f)].
    (c) Dedicated-FMDM/MPESS (flexible multiplexer-demultiplexer/
multipurpose experiment support structure) flight [Ref. Sec. 
1214.804(f)].
    (d) Complete-pallet flight [Ref. Sec. 1214.804(g)].
    (e) Shared-element flight [Ref. Sec. 1214.804(h)].



Sec. 1214.801  Definitions.

    (a) Shuttle policy. The appropriate subpart (1214.1 or 1214.2) 
governing use of the Shuttle. Determinaltion of the appropriate subpart 
for each customer shall be made by reference to Sec. Sec. 1214.101 and 
1214.201.
    (b) Spacelab elements. Pallets (3-meter segments), pressurized 
modules (long or short), and the FMDM/MPESS (1-meter cross-bay 
structure), all as maintained in the NASA-approved Space lab 
configuration.
    (c) Standard flight price. The price for standard Shuttle and 
standard Spacelab services provided. If a customer elects not to use a 
portion of the standard services, the standard flight price shall not be 
affected.
    (d) Shuttle load factor. The parameter used to compute the 
customer's pro rata share of Shuttle services and used to compute the 
Shuttle charge factor. Means of computing this parameter are defined in 
Sec. 1214.813.
    (e) Spacelab load fraction. The parameter used to compute the 
customer's pro rata share of each element's services and used to compute 
the element charge factor. Means of computing this parameter are defined 
in Sec. 1214.813.
    (f) Shuttle charge factor and element charge factor. Parameters used 
in computation of the customer's flight price. Means of computing these 
parameters are defined in Sec. 1214.813.
    (g) Dedicated flight price for Spacelab missions. (1) The single-
shift operation dedicated flight price for Spacelab missions is 
identical to the Shuttle dedicated flight price as defined in the 
Shuttle policy.
    (2) The two-shift operation dedicated flight price for Spacelab 
missions is the sum of:
    (i) The Shuttle dedicated flight price as defined in the Shuttle 
policy.
    (ii) The standard price for additional services required to support 
a second shift of on-orbit operations.



Sec. 1214.802  Relationship to Shuttle policy.

    Except as specifically noted, the provisions of the Shuttle policy 
also apply to Spacelab payloads. Although some language in the Shuttle 
policy is Shuttle-specific, it is the intent of this subpart 1214.8 that 
the Shuttle policy be applied to Spacelab also, including the policy on 
patent and data rights. However, in the event of any inconsistencies in 
the policies, the Spacelab policy will govern with respect to Spacelab 
services.



Sec. 1214.803  Reimbursement policy.

    (a) Reimbursement basis. (1) This policy is established for the 
second phase of STS operations (U.S. Government fiscal years 1986, 1987, 
and 1988).

[[Page 130]]

    (2) Standard flight price. During this phase, customers covered by 
subpart 1214.1 or subpart 1214.2 shall reimburse NASA for standard 
Spacelab services an amount which is a pro rata share of:
    (i) The appropriate dedicated flight price for the customer's 
Spacelab mission.
    (ii) The standard price for use of the selected Spacelab elements 
during the second phase of STS operations.
    (3) The price shall be held constant for flights during this phase 
of STS operations.
    (4) Reimbursement policies for subsequent phases of STS operations 
will be developed after NASA has obtained more operational experience.
    (b) Escalation. Payments shall be escalated in accordance with the 
Shuttle policy.
    (c) Customers shall reimburse NASA an amount which is the sum of the 
customer's standard flight price and the price for all optional services 
provided.
    (d) Earnest money. For those customers required to pay earnest money 
by the Shuttle policy, the total earnest money payment per payload for 
Spacelab payloads (including Shuttle services) shall be the lesser of 
$150,000 or 10% of the customer's estimated standard flight price. 
Earnest money will be applied to the first payment for standard services 
made for each payload by the customer or will be retained by NASA if a 
Launch Services Agreement is not signed.



Sec. 1214.804  Services, pricing basis, and other considerations.

    (a) Mandatory use of dedicated-Shuttle Spacelab flight. (1) 
Customers shall be required to fly under the provisions of paragraph (e) 
of this section if the customer requires exclusive use of any of the 
following:
    (i) Pressurized module (long or short).
    (ii) Three pallets in the ``1+1+1'' configuration.
    (iii) Four pallets in the ``2+2'' configuration.
    (2) In the cases cited in paragraph (a)(1) of this section, if the 
customer requests, NASA will attempt to find compatible sharees to fly 
with the customer's payload. If NASA is successful, the customer's 
Shuttle standard flight price shall be the greater of:
    (i) The appropriate dedicated flight price for the customer's 
Spacelab mission less adjusted reimbursements (as defined in the Shuttle 
policy) from sharees actually flown.
    (ii) The computed shared-flight Spacelab flight price for the 
customer's payload.
    (b) Apportionment and assignment of services. Subject to NASA 
approval, a customer contracting for a Spacelab flight shall be 
permitted to apportion and assign services under the provisions of the 
Shuttle policy.
    (c) Postponement and termination. (1) A customer may postpone the 
flight of a Spacelab payload one time with no additional charge if 
postponement occurs more than 18 months before the scheduled launch 
date.
    (2) Postponement or termination fees for Spacelab payloads shall 
consist of the sum of:
    (i) A fee for Shuttle transporation.
    (ii) A fee for use of the Spacelab elements.
    (3) Shuttle transportation fee. Customers shall be governed by the 
provisions of the Shuttle policy with the following exception. When 
computing occupancy fees for shared-element payloads, the ``adjusted 
reimbursements from other customers'' shall be defined as the adjusted 
reimbursements from those customers who subsequently contract for the 
use of the element being shared.
    (4) Spacelab use fee. The postponement and termination fees for use 
of the Spacelab elements are computed as a percentage of the customer's 
price for use of the Spacelab elements and shall be based on the table 
below. When postponement or termination occurs less than 18 months 
before launch, the fees shall be computed by linear interpolation using 
the points provided.

[[Page 131]]



------------------------------------------------------------------------
                                                Fee for use of Spacelab
                                                 element(s), percent of
Time when postponement or termination occurs,       price for use of
     months before scheduled launch date               element(s)
                                              --------------------------
                                               Postponement  Termination
------------------------------------------------------------------------
     Dedicated Flights, Dedicated Elements, and Dedicated FMDM/MPESS
------------------------------------------------------------------------
0............................................          75          100
3............................................          60           85
12...........................................          14           20
18...........................................           5           10
More than 18.................................           5           10
----------------------------------------------
                  Complete Pallets and Shared Elements
------------------------------------------------------------------------
Less than 8..................................          95          100
8............................................          95          100
9............................................          32           95
12...........................................          18           80
18...........................................           5           10
More than 18.................................           5           10
------------------------------------------------------------------------

    (5) At the time of signing of the Launch Services Agreement, NASA 
shall define a payload removal cutoff date (relative to the launch date) 
for each Spacelab payload to be flown on a shared flight. A customer may 
still postpone or terminate a flight after the payload's cutoff date; 
however, NASA shall not be required to remove the payload before flight.
    (d) Minor delays. The minor delay provisions of the Shuttle policy 
shall apply only to those Spacelab payloads whose Shuttle load factor is 
equal to or greater than 0.05.
    (e) Dedicated-Shuttle Spacelab flight. (1) A dedicated-Shuttle 
Spacelab flight is a Shuttle flight sold to a single customer who is 
entitled to select the Spacelab elements used on the flight.
    (2) In addition to the standard services listed in paragraph (i) of 
this section, the following standard services are provided to customers 
of dedicated-Shuttle Spacelab flights and form the basis for the 
standard flight price:
    (i) Use of the full standard services of the Shuttle and the 
Spacelab elements selected.
    (ii) One day of one-shift on-orbit operations.
    (iii) Standard mission destinations as defined in the Shuttle 
policy.
    (iv) Launch within a prenegotiated 90-day period in accordance with 
the dedicated flight scheduling provisions of the Shuttle policy.
    (v) The available payload operations time of two NASA-furnished 
mission specialists.
    (3) Customers contracting for a dedicated-Shuttle Spacelab flight 
shall reimburse NASA an amount which is the sum of:
    (i) The one-shift operation dedicated flight price for a 1-day 
Spacelab mission.
    (ii) The price for the use of all Spacelab elements used (including 
all necessary mission-independent Spacelab equipment).
    (iii) The price for all optional services provided.
    (f) Dedicated 3-meter pallets and dedicated FMDM/MPESS. (1) A 
dedicated pallet (or a dedicated FMDM/MPESS) is one which is sold to a 
single customer and which includes all Spacelab hardware necessary to 
permit it to be flown on any shared Shuttle flight as an autonomous 
payload (e.g., a dedicated 3-meter pallets may either be supplied with 
its own exclusive igloo or may fly without an igloo if it requires only 
standard Shuttle services).
    (2) In addition to a pro rata share of the standard service listed 
in paragraph (i) of this section, the following standard services are 
provided to customers of dedicated pallets (or dedicated FMDM/MPESS) and 
form the basis for establishing the standard flight price:
    (i) A pro rata share of the Shuttle services normally provided, 
where the basis for proration is the customer's Shuttle load factor as 
defined in Sec. 1214.813(d)(1) for dedicated pallets and in Sec. 
1214.813(e)(2) for dedicated FMDM/MPESS.
    (ii) The exclusive services of the pallet (or FMDM/MPESS) and all 
Spacelab hardware provided to support the pallet (or FMDM/MPESS).
    (iii) One day of one-shift on-orbit operations.
    (iv) Launch to the standard mission destination of 160 nmi, 
28.5 as defined in the Shuttle policy.
    (v) Launch within a prenegotiated 90-day period in accordance with 
the shared-flight scheduling provisions of the Shuttle policy.
    (vi) A pro rata share of the on-orbit payload operations time of two 
NASA-furnished mission specialists, where

[[Page 132]]

the basis of proration shall be the customer's Shuttle load factor.
    (3) Customers contracting for a dedicated pallet (or FMDM/MPESS) 
flight shall reimburse NASA an amount which is the sum of:
    (i) The product of the customer's Shuttle charge factor and the one-
shift-operation dedicated flight price of a 1-day Spacelab mission.
    (ii) The price for the use of the pallet (or FMDM/MPESS) selected 
(including all necessary mission-independent Spacelab equipment).
    (iii) The price for all optional services provided.
    (g) Complete pallet. (1) A complete Spacelab pallet is one which is 
sold to a single customer but flies with other Spacelab elements on a 
NASA or NASA-designated Spacelab flight and shares the common standard 
Spacelab services, e.g., shares an igloo with other pallets.
    (2) In addition to a pro rata share of the standard services listed 
in paragraph (i) of this section, the following standard services are 
provided to customers of complete pallets and form the basis for the 
standard flight price.
    (i) The pallet's pro rata share of standard Shuttle services, where 
the basis of proration shall be the customer's Shuttle load factor as 
defined in Sec. 1214.813(f)(1).
    (ii) A pro rata share of 7 days of two-shift on-orbit operations, 
where the basis of proration shall be the customer's Shuttle load 
factor.
    (iii) Mission destination selected by NASA in consultation with the 
customer.
    (iv) Assignment, with the customer's concurrence, to a Spacelab 
flight designated by NASA.
    (v) Launch date established by NASA.
    (vi) A pro rata share of the on-orbit payload operations time of two 
NASA-furnished mission specialists, where the basis of proration shall 
be the customer's Shuttle load factor.
    (vii) Use of the entire volume above a pallet.
    (3) Users contracting for complete pallet flights shall reimburse 
NASA an amount which is the sum of:
    (i) The product of the customer's Shuttle charge factor and the two-
shift-operation dedicated flight price of a 7-day Spacelab mission. The 
dedicated flight price for a 7-day complete-pallet mission is the sum of 
the dedicated flight price for a 1-day two-shift mission and the charge 
for 6 extra days of two-shift on-obit operation.
    (ii) The price for the use of a complete pallet, including all 
necessary mission-independent Spacelab equipment.
    (iii) The price for all optional services provided.
    (h) Shared element. (1) A shared element is a Spacelab pallet or 
module which:
    (i) Is shared by two or more customers on a NASA-designated Spacelab 
flight.
    (ii) Shares common standard Spacelab services with other Spacelab 
elements on the same flight.
    (2) In aditional to a pro rata share of the standard services listed 
in paragraph (i) of this section, the following standard services are 
provided to customers of shared elements and form the basis for the 
standard flight price:
    (i) For shared pallets, a pro rata share of the standard services 
provided by a pallet. The basis of proration shall be the customer's 
Spacelab load fraction as defined in Sec. 1214.813(g)(1)(i).
    (ii) For shared modules, a pro rata share of the standard services 
provided by a long module flown on a dedicated-Shuttle Spacelab flight. 
The basis of proration shall be the customer's Spacelab load fraction as 
defined in Sec. 1214.813(g)(1)(ii). The type of pressurized module 
actually used to meet a customer's requirement for a shared module shall 
be determined by NASA subsequent to contract negotiations.
    (iii) A pro rata share of the element's share of standard Shuttle 
services, where the basis for proration shall be the customer's Spacelab 
load fraction.
    (iv) A pro rata share of 7 days of two-shift on-orbit operations, 
where the basis of proration shall be the customer's Shuttle load factor 
as defined in Sec. 1214.813(g)(1).
    (v) Mission destination selected by NASA in consultation with the 
customer.
    (vi) Assignment, with the customer's concurrence, to a Spacelab 
flight designated by NASA.

[[Page 133]]

    (vii) Launch date established by NASA.
    (viii) A pro rata share of the on-orbit operations time of two NASA-
furnished mission specialists, where the basis of proration shall be the 
customer's Shuttle load factor.
    (3) Customers contracting for shared-element flight shall reimburse 
NASA an amount which is the sum of:
    (i) The product of the customer's Shuttle charge factor and the two-
shift operation dedicated flight price of a 7-day Spacelab mission. The 
dedicated flight price for a 7-day shared-element mission is the sum of 
the dedicated flight price for a 1-day two-shift-mission and the charge 
for 6 extra days of two-shift on-orbit operations.
    (ii) The product of the customer's element charge factor and the 
price for the use of the Spacelab element being used, including all 
necessary mission-independent Spacelab equipment.
    (iii) The price for all optional services provided.
    (i) Common standard Spacelab services. The following standard 
Spacelab services are common to all Spacelab flights:
    (1) Use of Shuttle \1\ and Spacelab hardware.
---------------------------------------------------------------------------

    \1\ Typical standard Shuttle services repeated for clarity.
---------------------------------------------------------------------------

    (2) Spacelab interface analysis.
    (3) Kennedy Space Center (KSC) launch.\1\
    (4) A five-person NASA flight crew consisting of commander, two 
pilots, and two mission specialists.
    (5) Accommodations for a five-person flight crew.
    (6) Prelaunch integration and interface verification of preassembled 
racks and pallets (Levels III, II, and I for NASA-furnished Spacelab 
hardware; Level I only for customer-furnished Spacelab hardware).
    (7) Shuttle \1\ and Spacelab flight planning.
    (8) Payload electrical power.
    (9) Payload environmental control.
    (10) On-board data acquisition and processing services.
    (11) Transmission of data to a NASA-designed monitoring and control 
facility via the basic STS Operational Instrumentation (OI) telemetry 
system.
    (12) Use of NASA-furnished standard payload monitoring and control 
facilities.
    (13) Voice communications between personnel operating the customer's 
payload and a NASA-designated payload monitoring and control facility.
    (14) NASA payload safety review.\1\
    (15) NASA support of payload design reviews.\1\
    (j) Typical optional Spacelab services. The following are typical 
optional Spacelab services:
    (1) Use of special payload support equipment, e.g., instrument 
pointing system.
    (2) Vandenberg Air Force Base (VAFB) launch.
    (3) Nonstandard mission destination.
    (4) Additional time on orbit.
    (5) Mission-independent training, use of, and accommodations for all 
flight personnel in excess of five.
    (6) Mission-dependent training of all NASA-furnished personnel and 
backups.
    (7) Analytical and/or hands-on integration (and de-integration) of 
the customer's payload into racks and/or onto pallets.
    (8) Unique integration or testing requirements.
    (9) Additional resources beyond the customer's pro rata share.
    (10) Additional experiment time or crew time beyond the customer's 
pro rata share.
    (11) Special access to and/or operation of payloads.
    (12) Customer unique requirements for; software development for the 
Command and Data Management Subsystem (CDMS) onboard computer, 
configuration of the Payload Operations Control Center (POCC), and/or 
CDMS utilized during KSC ground processing.
    (13) Extravehicular Activity (EVA) services.
    (14) Payload flight planning services.
    (15) Transmission of Spacelab data contained in the STS OI telemetry 
link to a location other than a NASA-designated monitoring and control 
facility.
    (16) Transmission of Spacelab data not contained in the STS OI 
telemetry link.

[[Page 134]]

    (17) Level III and/or Level II integration of customer-furnished 
Spacelab hardware.
    (k) Options. The provisions of Sec. Sec. 1214.102(e) and 
1214.202(e) do not apply to Spacelab payloads.



Sec. 1214.805  Unforeseen customer delay.

    Should an unforeseen customer payload problem pose a threat of delay 
to the Shuttle launch schedule or critical off-line activities, NASA 
shall, if requested by the customer, make all reasonable efforts to 
prevent a delay, contingent on the availability of facilities, 
equipment, and personnel. In requesting NASA to make such special 
efforts, the customer shall agree to reimburse NASA the estimated 
additional cost incurred.



Sec. 1214.806  Premature termination of Spacelab flights.

    If a dedicated-Shuttle Spacelab flight, a dedicated-pallet flight, 
or dedicated-FMDM/MPESS flight is prematurely terminated, NASA shall 
refund the optional services charges for planned, but unused, extra days 
on orbit. If a complete-pallet or shared-element flight is prematurely 
terminated, NASA shall refund a pro rata share of the charges for 
planned, but unused, extra days on orbit to customers whose payload 
operations are, in NASA's judgment, adversely affected by such premature 
termination. The basis for proration shall be the customers' Shuttle 
load factor.



Sec. 1214.807  Exceptional payloads.

    Customers whose payloads qualify under the NASA Exceptional Program 
Selection Process shall reimburse NASA for Spacelab and Shuttle services 
on the basis indicated in the Shuttle policy.



Sec. 1214.808  Standby payloads.

    The standby payload provisions of the Shuttle policy do not apply to 
Spacelab flights.



Sec. 1214.809  Short-term call-up and accelerated launch.

    The short-term call-up and accelerated launch provisions of the 
Shuttle policy normally are not offered to Spacelab customers. NASA will 
negotiate any such customer requirements on an individual basis.



Sec. 1214.810  Integration of payloads.

    (a) The customer shall bear the cost of performing the following 
typical Spacelab-payload mission management functions:
    (1) Analytical design of the mission.
    (2) Generation of mission requirements and their documentation in 
the Payload Integration Plan (PIP).
    (3) Provision of mission unique training and payload specialists (if 
appropriate).
    (4) Physical integration of experiments into racks and/or onto 
pallets.
    (5) Provision of payload unique software for use during ground 
processing, on orbit, or in POCC operations.
    (6) Supporting operations.
    (7) Assuring the mission is safe.
    (b) All physical integration (and de-integration) of payloads into 
racks and/or onto pallets will normally be performed at KSC by NASA. 
When the customer provides Spacelab elements, these physical integration 
activities may be done by the customer at a location chosen by the 
customer.
    (c) With the exception of the restrictions noted in paragraph (b) of 
this section, customers contracting for dedicated-Shuttle and dedicated-
pallet flights may perform the Spacelab-payload mission management 
functions defined in paragraph (a) of this section. NASA will assist 
customers in the performance of these functions, if requested. Charges 
for this service will be based on estimated actual costs, or actual 
costs where appropriate, and will be in addition to the price for 
standard services.
    (d) For complete pallets or shared elements, NASA will normally 
perform the Spacelab-payload mission management functions listed in 
paragraph (a) of this section. Charges for this service will be based on 
estimated actual costs, or actual costs where appropriate, and will be 
in addition to the price for standard services.
    (e) Integration of payload entities mentioned in paragraphs (b)-(d) 
of this section with NAS-furnished Spacelab support systems and with the 
Shuttle shall be performed by NASA as a standard service for all 
payloads flown on

[[Page 135]]

customer-furnished Spacelab elements. Customers shall be available to 
participate as required by NASA in these levels of integration. Customer 
equipment shall be operated only to the extent necessary for interface 
verification. Customers requiring additional payload operation after 
delivery of the payload to NASA shall negotiate such operation as an 
optional service.



Sec. 1214.811  Reflight guarantee.

    (a) During the second phase of STS operations, there is no 
additional reflight premium for those shared-flight Spacelab payloads 
which can be accommodated on a standard Shuttle launch to 160 nmi, 
28.5 as defined in the Shuttle policy and all dedicated-
flight Spacelab payloads.
    (b) NASA and the customer may negotiate appropriate reflight 
provisions (e.g., scheduling, reflight premiums) for payloads not 
covered by paragraph (a) of this section. Otherwise, no reflight 
services shall be provided.
    (c) Reflight guarantees, if provided, must cover the customer's 
entire payload.
    (d) Payloads covered by reflight guarantees shall be entitled to a 
reflight with no charge for standard Spacelab and Shuttle services if 
both the following occur:
    (1) Through no fault of the customer or defect in the customer's 
payload, Spacelab systems (i.e., data, power, and cooling) are not 
within nominal specifications, as measured by NASA at normal Spacelab 
monitoring points, at the time of first turn-on of the customer's 
payload, all as defined in the Launch Services Agreement.
    (2) The customer's mission objective is not achieved solely as a 
direct result of the occurrence, at the time of first turn-on of the 
customer's payload, of events described in paragraph (d)(1) of this 
section.
    (e) If more than one reflight is required, no additional reflight 
premium shall be charged.
    (f) If a payload being reflown was not initially covered by a 
reflight guarantee, the reimbursements for the reflight shall be the 
same as for a newly-scheduled launch.



Sec. 1214.812  Payload specialists.

    (a) The use of customer-furnished payload specialists shall be 
subject to the approval of the NASA Administrator or the Administrator's 
designee.
    (b) Customers with payloads whose Shuttle load factor is equal to or 
greater than 0.5 are entitled to request that a customer-selected 
payload specialist be flown with the customer's payload. Dedicated-
flight customers are entitled to request the flight of two customer-
selected payload specialists.
    (c) NASA may approve the flight of a customer-selected payload 
specialist with payloads whose Shuttle load factor is less than 0.5 if, 
in NASA's judgment, there is sufficient scientific need to warrant such 
a flight.
    (d) The standard Spacelab flight price is based on operation of the 
customer's payload by two NASA-furnished mission specialists. 
Accommodations for, and mission-independent training of, any payload 
specialists and backups required for the customer's mission shall be 
provided as optional services and shall be paid for by the customer. The 
price for this service shall be the same for both customer-furnished and 
NASA-furnished payload specialists.



Sec. 1214.813  Computation of sharing and pricing parameters.

    (a) General. (1) Computational procedures as contained in the 
following subparagraphs of this paragraph of this section shall be 
applied as indicated. The procedure for computing Shuttle load factor, 
charge factor, and flight price for Spacelab payloads replaces the 
procedure contained in the Shuttle policy.
    (2) Shuttle charge factors as derived herein apply to the standard 
mission destination of 160 nmi altitude, 28.5 
inclination. Customers shall reimburse NASA an optional services fee for 
flights to nonstandard destinations.
    (3) The customer's total Shuttle charge factor shall be the sum of 
the Shuttle charge factors for the customer's individual (dedicated, 
complete, or shared) elements, with the limitation that the customer's 
Shuttle charge factor shall not exceed 1.0.
    (4) Customers contracting for pallet-only payloads are entitled to 
locate

[[Page 136]]

minimal controls as agreed to by NASA in a pressurized area to be 
designated by NASA. There is no additional charge for this service.
    (5) NASA shall, at its discretion, adjust up or down the load 
factors and load fractions calculated according to the procedures 
defined in this section. Adjustments shall be made for special space or 
weight requirements which include, but are not limited to:
    (i) Sight clearances, orientation, or placement limits.
    (ii) Clearances for movable payloads.
    (iii) Unusual access clearance requirements.
    (iv) Clearances extending beyond the bounds of the normal element 
envelope.
    (v) Extraordinary shapes.

The adjusted values shall be used as the basis for computing charge 
factors and prorating services.
    (b) Definitions used in computations--(1) LC=Chargeable 
payload length, m. The total length in the cargo bay occupied by the 
customer's experiment and the Spacelab element(s) used to carry it.
    (2) WC=The weight of the customer's payload and the 
customer's pro rata share of the weight of NASA mission-peculiar 
equipment carried to meet the customer's needs, kg.
    (c) Dedicated-shuttle spacelab flight (1-day mission). The total 
reimbursement is as defined in Sec. 1214.804(e)(3).
    (d) Dedicated-pallet flight (1-day mission). (1) The Shuttle load 
factors and charge factors for dedicated-pallet flights are shown in 
table 1. Subject to other STS Spacelab structural limits, customers are 
entitled to utilize the payload weight capability of the pallets as 
indicated in table 1. Payload weights in excess of those shown are 
subject to NASA approval and may entail optional services charges.

           Table 1--Shuttle Load Factors, Charge Factors, and Nominal Capacities for Dedicated Pallets
----------------------------------------------------------------------------------------------------------------
                                           Load factor              Charge factor            Nominal payload
                                   ----------------------------------------------------       capacity, kg
         Number of pallets                                                             -------------------------
                                     With Igloo   FMDM con-    With Igloo   FMDM con-                 FMDM con-
                                                  figuration                figuration   With Igloo   figuration
----------------------------------------------------------------------------------------------------------------
1.................................        0.228        0.189        0.305        0.252        2,325        2,950
2.................................        0.392           NA        0.523           NA        4,470           NA
3-pallet train \1\................        0.556           NA        0.742           NA        4,435           NA
2+1 configuration.................        0.594           NA        0.792           NA        7,750           NA
----------------------------------------------------------------------------------------------------------------
\1\ Three pallets requiring the ``1+1+1'' configuration shall be flown on a dedicated flight basis [See Sec.
  1214.804(a)].

    (2) Total reimbursement. The customer's total reimbursement is as 
defined in Sec. 1214.804(f)(3).
    (e) Dedicated FMDM/MPESS flight (1-day mission)--(1) Shuttle charge 
factor. The computed charge factor for dedicated FMDM/MPESS flights is 
defined as:
[GRAPHIC] [TIFF OMITTED] TC14NO91.005

    (2) Shuttle load factor. (i) The Shuttle load factor is defined as 
the maximum of:
[GRAPHIC] [TIFF OMITTED] TC14NO91.006

    (ii) The minimum value of LC is based on the element 
length, plus clearances, and is 1.18 m.
    (3) Total reimbursement. The customer's total reimbursement is as 
defined in Sec. 1214.804(f)(3).
    (f) Complete pallets (7-day mission). (1) The Shuttle load factor 
and charge factor for a complete pallet are 0.198 and 0.228, 
respectively, and its payload weight capability is 2,583 kg. Subject to 
other STS or Spacelab structural limits, customers are entitled to 
utilize this payload weight capability. Payload weight in excess of 
2,583 kg is subject to NASA approval and may entail optional service 
charges.
    (2) Total reimbursement. The customer's total reimbursement is as 
defined in Sec. 1214.804(g)(3).

[[Page 137]]

    (g) Shared elements (7-day mission)--(1) Spacelab load fractions and 
Shuttle load factors--(i) Pallet. Spacelab load fraction is the greater 
of:
[GRAPHIC] [TIFF OMITTED] TC14NO91.007

    Shuttle load factor is the greatest of:
    [GRAPHIC] [TIFF OMITTED] TC14NO91.008
    
    (ii) Pressurized module. Spacelab load fraction and Shuttle load 
factor are identical and are the greater of:
[GRAPHIC] [TIFF OMITTED] TC14NO91.009

    (2) Shuttle charge factors and element charge factors for 
pressurized modules. Shuttle charge factors and element charge factors 
are identical and are defined as follows:

------------------------------------------------------------------------
                                              The element charge factor
If the Spacelab load fraction (and Shuttle    and Shuttle charge factor
             load factor) is--                       shall be--
------------------------------------------------------------------------
Less than 0.00435.........................  .005.
0.00435 to 0.87                             Spacelab load fraction
                                             divided by 0.87.
Greater than 0.87.........................  1.0.
------------------------------------------------------------------------

    (3) Element charge factors for shared pallets.

------------------------------------------------------------------------
                                              The element charge factor
    If the Spacelab load fraction is--               shall be--
------------------------------------------------------------------------
Less than 0.0189..........................  0.0218.
0.0189 to 0.87............................  Spacelab load fraction
                                             divided by 0.87.
Greater than 0.87.........................  1.0.
------------------------------------------------------------------------

    (4) Shuttle charge factors for shared pallets.

------------------------------------------------------------------------
                                              The Shuttle charge factor
      If the Shuttle load factor is--                shall be--
------------------------------------------------------------------------
Less than 0.00375.........................  0.005.
0.00375 to 0.75...........................  Shuttle load factor divided
                                             by 0.75.
Greater than 0.75.........................  1.0.
------------------------------------------------------------------------

    (5) Total reimbursement. (i) The customer's total reimbursement is 
as defined in Sec. 1214.804(h)(3).
    (ii) If a customer contracts for portions of more than one element, 
the charges for the use of the elements shall apply individually to each 
element used.
    (6) Experiment volume in the pressurized module is defined to be the 
sum of the customer's payload volume in racks and in the center aisle.
    (i) Rack volume is defined relative to basic Air Transportation Rack 
(ATR) configurations. The customer's rack volume shall be defined as the 
volume of one or more rectangular parallelepipeds (rectangular-sided 
box) which totally enclosed the customer's payload. Width dimensions 
shall be either 45.1 or 94.0 centimeters. Height dimensions shall be 
integral multiples of 4.45 centimeters. Depth dimensions shall be 61.2 
or 40.2 centimeters.
    (ii) Center aisle space volume is defined as the volume of a 
rectangular parallelepiped which totally encloses the customer's 
payload. No edge of the parallelepiped shall be less than 30 centimeters 
in length.
    (7) Storage volume in the pressurized module is defined as the 
volume of one or more rectangular parallelepipeds enclosing the 
customer's stowed payload. No edge of the parallepiped(s) shall be less 
than 30 centimeters in length.
    (8) Volume of the customer's pallet-mounted payload is defined as 
the volume of a rectangular parallelepiped enclosing the pallet payload 
and customer-dictated mounting hardware. No edge of the parallelepiped 
shall be less than 30 centimeters in length.



          Subpart 1214.9--Small Self-Contained Payloads (SSCPs)

    Authority: 42 U.S.C. 2473 and 2475.

    Source: 66 FR 37411, July 18, 2001, unless otherwise noted.

[[Page 138]]



Sec. 1214.900  What does this subpart cover?

    This subpart sets forth the rules on Space Shuttle services that are 
provided by NASA to participants in the Small Self-Contained Payloads 
(SSCP's) Program. This subpart also includes NASA's policy for the use 
of SSCP's by domestic educational institutions. NASA's policy on SSCP's 
is to stimulate and encourage the use of space by a wide range of 
participants, particularly those associated with education.



Sec. 1214.901  What is the relationship of this subpart with subparts 1214.1 and 1214.2?

    This subpart governs the provision of Space Shuttle services for 
SSCP's; subparts 1214.1 and 1214.2 are not applicable.



Sec. 1214.902  Definitions.

    (a) What is a SSCP? SSCP's, otherwise known as Get Away Specials 
(GAS), are small (200 pounds or less and 5 cubic feet or less) 
scientific research and development payloads flown on a space-available 
basis in a NASA-supplied standard cylindrical container under the 
provisions of this subpart.
    (b) Who is a SSCP participant? A SSCP participant is any individual 
or entity that meets the following criteria:
    (1) Submits a letter requesting a SSCP flight opportunity (for an 
authorized representative of NASA, this is considered a ``Letter of 
Intent'') and includes a brief description of the proposed payload to 
the Shuttle Small Payload Projects Office (SSPPO), Goddard Space Flight 
Center, Wallops Flight Facility, National Aeronautics and Space 
Administration, Wallops Island, VA 23337.
    (2) Any individual, entity or U.S. Government agency (other than 
NASA), shall also submit an earnest money deposit of $500 to pursue a 
SSCP flight opportunity.
    (3) The party submitting the $500 earnest money deposit need not be 
the entity providing the payload. The party entering into the Launch 
Services Agreement (LSA) is responsible for payment of standard and 
optional service fees agreed upon in the signed LSA.
    (4) The party signing the LSA may enter into a joint venture or 
other arrangement (sponsorship) with one or more parties to fly the 
payload in one NASA container. All participants involved in the project 
shall be identified in the signed LSA.
    (c) What are payload classes? NASA determines the class for each 
payload based on the type of institution or organization providing or 
supplying the payload, as defined in the LSA. Classes of payloads are 
defined as follows:
    (1) Class I payloads are payloads flown for scientific educational 
purposes by a recognized domestic educational institution. For a payload 
to qualify for flight as a Class I, ``domestic educational institution 
payload'':
    (i) The applying institution must be a U.S. public or private 
nonprofit (Section 501(c)(3) of the Internal Revenue Code (26 U.S.C.)) 
educational institution, which may include universities, colleges, 
community colleges, elementary or secondary schools, or university-
affiliated education research foundations. Entities other than Section 
501(c)(3) domestic education institutions may sponsor a Class I, 
domestic education payload, providing the educational institution meets 
the criteria established for domestic educational institutions in this 
policy.
    (ii) The payload must be certified, by an authorized official of the 
institution, to be part of an educational or research project that is 
principally for the benefit of students, rather than non-students, such 
as faculty, research staff or the sponsor. The certification shall 
include a brief explanation of the educational aspects of the payload 
project and how it principally benefits students.
    (iii) Payload experiments should involve students in all phases of 
the project, including concept development, initial planning, design, 
conduct, and analysis of the results of the experiments.
    (2) Class II payloads are payloads flown for the U.S. Government.
    (3) Class III payloads are payloads flown for other U.S. commercial 
and private entities.
    (4) Class IV payloads are payloads flown for international entities, 
whether they be educational institutions,

[[Page 139]]

government or industry. Class IV payloads are subject to the same 
existing U.S. laws and regulations as are domestic payloads. Class IV 
payloads are subject to review and approval by the NASA Office of 
External Relations. Only payloads whose use is exclusively for peaceful 
purposes are eligible for flight through the GAS Program.
    (d) What is an earnest money deposit? An earnest money deposit is a 
non-refundable $500 down payment required for participation in the SSCP 
Program.
    (e) Why is the earnest money receipt (EMR) date important? The 
earnest money receipt (EMR) date is the date NASA receives the earnest 
money deposit from a non-NASA participant or a ``Letter of Intent'' from 
a NASA participant. Upon receipt of the earnest money or ``Letter of 
Intent'', a payload identification number is assigned. The EMR date 
determines the payload's position in the flight assignment queue. To 
retain the EMR date, the terms defined in the Launch Services Agreement 
(LSA) must be met.
    (f) What is a LSA? A Launch Services Agreement (LSA) is a binding 
contract that describes the governing terms and conditions for flight of 
an SSCP payload, including the price for standard and optional services. 
For more information on contents of the LSA, refer to Sec. 1214.903.
    (g) What is a PAR? A Payload Accommodations Requirements (PAR) 
document is the technical agreement, between NASA's SSCP Program and the 
parties designated in the LSA, which defines the unique information 
required for the preparation, flight and disposition of a GAS payload.
    (h) What is a PIP? A Payload Integration Plan (PIP) defines the 
technical agreement between NASA's SSCP Program and the Space Shuttle 
Program Office at Johnson Space Center (JSC) and defines any Shuttle 
related optional service requirements.
    (i) What is the ``queue''? (1) The Flight Assignment Queue is the 
queue of payloads eligible to be manifested on a shuttle flight. To be 
eligible, the payload must meet the following criteria:
    (i) A LSA has been signed within the requirements outlined in Sec. 
1214.903.
    (ii) The requirements of the signed PAR and PIP have been met.
    (iii) NASA has assessed the technical readiness of the payload and a 
Phase II Safety Data Package equivalent has been submitted, in 
accordance with the NSTS 1700.7, Safety Policy and Requirements for 
Payloads Using the STS and the NSTS 13830, Payload Safety Review and 
Data Submittal Requirement.
    (2) Once a payload has met these criteria, it enters the queue with 
its position based on the EMR date.
    (j) What is the ``Two-in-Twenty'' rule? The SSCP Program utilizes a 
flight assignment process in which no entity may receive more than two 
out of any twenty consecutive payload opportunities, as long as there 
are other payloads available for assignment.
    (k) What is a cancellation? When the party signing the LSA fails to 
meet its obligations under the LSA, with no undue administrative delay 
on the part of NASA, the payload will be removed from participation in 
the SSCP Program with no refund of monies paid.
    (l) What are standard services? Standard services provided to all 
SSCP's are listed in Sec. 1214.910.
    (m) What are optional services? Optional services are additional 
services requested by the SSCP participant and provided, at NASA's 
option. NASA may also determine the need for a specific optional service 
for a payload. Optional services require an additional cost to the 
participant and are identified and agreed upon in the LSA (refer to 
Sec. 1214.911).
    (n) What is an undue administrative delay on the part of NASA? An 
undue administrative delay is a delay caused by NASA's failure to 
perform its functions under the LSA in a reasonable time, as determined 
by NASA. Delays caused by the parties' inability to agree to the LSA 
terms and conditions are specifically excluded from this definition.
    (o) What is a ``Letter of Intent''? A ``Letter of Intent'' is 
written by an authorized NASA representative requesting participation in 
the SSCP Program. For more information on the ``Letter of Intent'', 
refer to Sec. 1214.904(e).

[[Page 140]]



Sec. 1214.903  What are the requirements concerning Launch Services Agreements (LSA)?

    (a) Once the Earnest Money Deposit is received, the LSA shall 
designate:
    (1) All participants involved in the project;
    (2) The class of the payload;
    (3) The general nature and purpose of the payload;
    (4) The size and weight of the payload;
    (5) The price for standard services to be provided;
    (6) Any restrictions on the type of Shuttle flight appropriate for 
flying the payload;
    (7) The payment schedule and the terms of cancellation;
    (8) The optional services to be provided by NASA and the price of 
those services; and
    (9) The means of compliance with the provisions of Sec. 1214.908 
regarding significant impact on public health, safety or welfare.
    (b) A separate LSA shall be signed for each payload.
    (c) The LSA must be signed within 12 months from the date of the 
letter forwarding the LSA to the SSCP participants for signature. If the 
LSA is not signed within the required time, the $500 earnest money 
deposit will be forfeited and the payload will be cancelled.



Sec. 1214.904  What are the conditions of use for a SSCP?

    (a) The payload must be flown in a NASA-supplied standard container.
    (b) The payload shall be used only to conduct experiments of a 
scientific research and development nature or scientific education 
purposes.
    (c) All participants shall be required to furnish NASA with 
sufficient information to ensure Shuttle safety. NASA shall reserve the 
right to inspect and/or test all materials, components, and elements of 
the payload at any time, including sealed and commercially supplied 
payload elements.
    (d) The party signing the LSA shall be required to furnish NASA with 
sufficient information to verify peaceful purposes and NASA's and the 
U.S. Government's continued compliance with law and the Government's 
obligations.
    (e) NASA participants shall submit a ``Letter of Intent'', signed by 
an authorized NASA representative, to initiate the process of arranging 
for a SSCP flight. A NASA Center is required to seek sponsorship from a 
NASA Headquarters Program Office, identify that sponsoring code and 
obtain their concurrence in the ``Letter of Intent''.
    (f) The NASA Administrator reserves the right to determine the 
acceptability of any SSCP participant and any payload, on a case-by-case 
basis. The NASA Administrator may reject any payload, which, in his/her 
opinion, would be contrary to the educational mission of this program or 
NASA's mission.
    (g) To assure humane treatment, the Office of Biological and 
Physical Research at NASA Headquarters will review all experiments using 
live animals.



Sec. 1214.905  What is NASA's reimbursement policy?

    (a) Will I get my earnest money back if I cancel? No, the earnest 
money is non-refundable, but is applied to the standard flight price if 
the LSA is signed within the required time. If the LSA is not signed 
within the required time, the $500 earnest money will be forfeited and 
the payload will be cancelled.
    (b) How will I reimburse NASA for services?
    (1) NASA shall be reimbursed an amount, which is the sum of the 
price for standard services and the price for optional services.
    (2) All standard services shall be charged on a fixed-price basis. 
Prices are based on the payload classification, weight and volume.
    (3) NASA shall be reimbursed in accordance with the reimbursement 
schedule specified in the signed LSA.
    (c) When there is no undue administrative delay on the part of NASA, 
and the progress payments are not reimbursed to NASA within the 
allocated time provided in the LSA, all monies paid to date will be 
forfeited and the payload will be cancelled.

[[Page 141]]



Sec. 1214.906  When will my payload be scheduled to fly?

    (a) NASA shall not be obligated to perform any standard or optional 
services, including flight scheduling and placement of the payload on 
the STS, if the terms of the signed LSA have not been met.
    (b) How does the flight queue work? Tentative flight assignments of 
payloads shall be made on a rotation basis using the rotation sequence 
of Class I, II, I, III, I, IV, I, II, etc. (refer to Sec. 1214.902(d)). 
Rotation is maintained in a continuing sequence from mission to mission. 
Payloads must meet all other mission requirements to be assigned to the 
available space. If, at the time of a tentative flight assignment, there 
are no payloads in the current class of the continuing rotation that 
meet all the mission requirements, payloads of the next class in the 
rotation sequence shall be considered until a payload meeting the 
requirements is found available.
    (c) Are there reasons my payload would not be assigned to an 
available flight? Payloads shall be assigned on the basis of their 
positions in the flight assignment queue within each class with the 
following exceptions:
    (1) If the available flight does not meet the payload's requirements 
as defined in their signed PAR and LSA, the payload shall not be 
assigned to the flight but shall retain its position in the flight 
assignment queue until a suitable flight becomes available.
    (2) If the ``Two-in-Twenty'' rule applies to a payload, that payload 
shall not be assigned to the flight, but shall retain its position in 
the flight assignment queue (refer to Sec. 1214.902 (k)).
    (d) Once a payload has been given a tentative flight assignment, it 
shall not be removed from a flight as a result of another SSCP 
participants' subsequent signing of a LSA.
    (e) NASA may reschedule a payload tentatively assigned to a flight 
as a result of other Shuttle operational considerations. Should this be 
necessary, rescheduling shall be done on a last-on, first-off basis.
    (f) Payloads being re-flown pursuant to Sec. 1214.907 and payloads 
rescheduled by NASA after tentative flight assignment shall have flight 
assignment priority, in that order, on subsequent flights over all other 
payloads including those already assigned to other flights.
    (g) NASA shall determine the date for payload delivery to the launch 
site. Payment of launch fees, as defined in the signed LSA, is required 
before the payload delivery to launch site.



Sec. 1214.907  Will NASA re-fly my payload if something goes wrong (and it's not my fault)?

    (a) NASA will provide a one-time re-flight of a payload at no 
additional charge for SSCP standard services, if all the following 
occur:
    (1) Standard SSCP systems are not within nominal specifications, at 
the time of first turn-on of the payload in orbit, through no fault of 
the SSCP participant (including all its related entities).
    (2) The payload's mission objectives are not achieved solely as a 
direct result of the conditions or events described in paragraph (a)(1) 
of this section; and
    (3) The payload returns safely to Earth or a second (essentially 
identical) payload is provided for re-flight.
    (b) A re-flight shall be provided with a dollar credit towards 
future optional SSCP services, or the party signing the LSA shall be 
refunded, for any unused optional SSCP services purchased and paid for 
on the Shuttle flight which entitles the payload to a re-flight.
    (c) The two-in-twenty rule is not applicable to the re-flight of the 
payloads described in this section.



Sec. 1214.908  Who gets rights to patents resulting from the payload or to the scientific/research data generated?

    (a) NASA will not acquire rights to inventions, patents, or 
proprietary data privately funded by SSCP participants, or arising out 
of activities for which NASA has been reimbursed under the policies set 
forth in this subpart. However, in certain instances in which the NASA 
Administrator has determined that activities may have a significant 
impact on the public health, safety, or welfare, NASA may obtain 
assurances from the participants that the results will be made available 
to the public on terms and

[[Page 142]]

conditions reasonable under the circumstances.
    (b) NASA, unless otherwise agreed, will require all scientific or 
research data to be made publicly available without restriction of 
disclosure and use no later than one year after the Shuttle mission on 
which the payload was flown. Possible exceptions are:
    (1) Those results comprising an invention for which patent 
protection has been or will in a reasonable time be sought; or
    (2) Data disclosing an invention prior to applying for patent 
protection thereon.



Sec. 1214.909  What if my payload is damaged?

    The flight price does not include a contingency or premium for 
damage that may be caused to a payload through the fault of the U.S. 
Government, its contractors, or other Space Shuttle users. The U.S. 
Government assumes no risk for damage or loss to the payload. The 
participants in the SSCP Program assume this risk and are free to 
purchase insurance protection against damage or loss to their payload. 
In the event the party signing the LSA permits a third party to use its 
SSCP flight opportunity, this third party will be required to agree to 
the terms of the cross-waiver of liability in the launch services 
agreement.



Sec. 1214.910  What are the standard services NASA provides for my payload?

    The following are standard services provided for SSCP's:
    (a) Flight in a NASA flight-qualified standard container.
    (b) Use of a NASA shipping container.
    (c) One ``on'' and one ``off'' signal provided on each of three 
NASA-provided inputs to the container.
    (d) Choice of one standard NASA container atmosphere (vacuum, 
breathing air, inert gas, inert gas vented in space).
    (e) Limited consultation on space systems provided by NASA at 
designated NASA centers.
    (f) Standard NASA payload safety reviews at a designated NASA 
center. (Safety shall not be compromised. Unusually complex safety 
reviews or testing/analysis requires additional funding as an optional 
service.)
    (g) Pre-integration storage of the payload at Kennedy Space Center 
(KSC).
    (h) Limited access to the payload prior to integration.
    (i) Installation of the payload in the container and removal of the 
payload from the container after flight.
    (j) Installation of the container in the Shuttle and removal of the 
container from the Shuttle after flight.
    (k) KSC launch.
    (l) On-orbit payload operational time consistent with the primary 
Space Shuttle mission.
    (m) Brief post-flight documentation of the Space Shuttle mission 
profile and payload operational times.
    (n) Return of payload to the participant at the launch site.



Sec. 1214.911  Can I buy optional services for my payload from NASA?

    (a) Optional services are available, and the price, terms, and 
conditions for such services shall be negotiated on a case-by-case basis 
and agreed upon in the LSA.
    (b) Optional services could result in substantial additional charges 
and increased liability insurance requirements and/or affect NASA's 
ability to manifest the payload.
    (c) NASA may, at its sole discretion, approve or deny the provision 
of requested optional services.



Sec. 1214.912  Are there special provisions for SSCP participants who already have a signed LSA governed by regulations in effect before April 23, 1999?

    (a) Where there are participants with a signed LSA governed by the 
provisions of 14 CFR 1214.9 and 1214.10 in effect before April 23, 1999 
(and contained in the 14 CFR, Part 1200 to end, edition revised as of 
January 1, 1999), and there will be new participants with a signed LSA 
governed by the provisions of this subpart 14 CFR 1214.9, the following 
provisions apply to the manifesting of payloads:
    (1) Participants with a signed LSA may elect to sign a new LSA, and 
retain their Earnest Money Receipt date as defined in their original 
signed LSA.

[[Page 143]]

Once the new LSA is signed, the provisions of this subpart apply to 
those participants.
    (2) Participants with a signed LSA who choose not to sign a new LSA 
will retain their Earnest Money Receipt date and their payload 
classification as defined in their original signed LSA, 14 CFR 1214.9 
and 1214.10 in effect before April 23, 1999 and shall apply to their 
payload's participation in the SSCP program.
    (3) Participants who do not have a signed LSA or have not met the 
terms of their signed LSA will be required to either sign a new LSA or 
their payload will be cancelled and all monies paid will be forfeited.
    (b) The primary differences between the provisions in effect before 
April 23, 1999 and the provisions in this subpart are the payload 
classification and rotation sequence for manifesting payloads, as set 
forth in the following table:

------------------------------------------------------------------------
                     If you remain
   The previous      under the old     If and when you        The new
     rotation       signed LSA, your   sign a new LSA,       rotation
    sequence:        payload class       your payload       sequence:
                        will be:        class will be:
------------------------------------------------------------------------
Class II, Class    Class I--Domestic  Class I--Domestic  Class I, Class
 I, Class II,       Education          Education          II, Class I,
 Class III, Class  Class II--Other    Class II--U.S.      Class III,
 II, Class I,       U.S. and           Government         Class I, Class
 etc.               International     Class III--Other    IV, Class I,
                   Class III-U.S.      U.S.               etc.
                    Government        Class IV--
                                       International
------------------------------------------------------------------------

    (c) Payloads will be offered tentative flight opportunities for each 
mission in the following sequence until the flight manifest is 
fulfilled:
    (1) As defined in the provisions of 14 CFR 1214.9 and 1214.10 in 
effect before April 23, 1999, payloads with signed LSA's will be 
tentatively manifested utilizing the class rotation of II, I, II, III 
until this queue is exhausted;
    (2) If the previous queue is exhausted and additional payloads are 
needed to fulfill the flight manifest, the new class rotation of I, II, 
I, III, I, IV, as defined in this subpart 1214.9, will then be used to 
tentatively manifest payloads with signed LSA's until the manifest is 
fulfilled.
    (3) NASA participants are not required to sign a LSA and are 
considered a government class payload in both rotation sequences as 
defined in paragraphs (c)(1) and (2) of this section.

Subpart 1214.10 [Reserved]



Sec. Sec. 1214.1000-1214.1004  [Reserved]



  Subpart 1214.11--NASA Astronaut Candidate Recruitment and Selection 
                                 Program

    Source: 54 FR 37940, Sept. 14, 1989, unless otherwise noted.



Sec. 1214.1100  Scope.

    It is NASA policy to maintain an integrated Astronaut Corps. This 
subpart 1214.11 sets forth NASA procedures and assigns responsibilities 
for recruitment and selection of astronaut candidates. It applies to all 
pilot and mission specialist astronaut candidate selection activities 
conducted by the National Aeronautics and Space Administration.



Sec. 1214.1101  Announcement.

    (a) Astronaut candidate opportunities Will be announced nationwide 
and publicized periodically unless specifically canceled by NASA.
    (b) Civilian applicants may apply at any time.
    (c) Military personnel on active duty must apply through and be 
nominated by the military service with which they are affiliated. 
Military nominees will not be part of the continuing pool of applicants. 
The military services will convene their internal selection boards and 
provide nominees to NASA. The military nominees will be evaluated by 
NASA and the military services will be notified promptly of those 
nominees who are finalists.
    (d) The Assistant Administrator for Equal Opportunity Programs, NASA 
Headquarters, will provide assistance in the recruiting process.

[54 FR 37940, Sept. 14, 1989, as amended at 68 FR 19948, Apr. 23, 2003]

[[Page 144]]



Sec. 1214.1102  Evaluation of applications.

    (a) All incoming applications will be reviewed to determine whether 
or not applicants meet basic qualifications. Those not meeting the basic 
qualification requirements will be so notified and will not be eligible 
for further consideration. Those meeting the basic qualification 
requirements will have their applications retained for review by a 
designated rating panel.
    (b) A rating panel composed of discipline experts will review and 
rate qualified applicants as ``Qualified'' or ``Highly Qualified.''
    (c) Efforts will be made to ensure that minorities and females are 
included among these discipline experts on the rating panel.
    (d) The criteria for each level will be developed and will serve as 
the basis for the ratings. The evaluation will be based on the quality 
of the individual's academic background and experience and the extent to 
which the individual's academic achievements, experience, and special 
qualifications relate to the astronaut candidate position. Reference 
information on those rated ``Highly Qualified'' will normally be 
obtained. This evaluation process will be monitored to ensure adherence 
to applicable policy, laws, and regulations.
    (e) Those rated ``Highly Qualified'' may be required to obtain a 
Class I or Class II physical. Only medically qualified applicants will 
be referred for final evaluation and possible interview and selection. 
Those who are not medically qualified will be so informed and will not 
be eligible for further consideration.

[54 FR 37940, Sept. 14, 1989, as amended at 68 FR 19948, Apr. 23, 2003]



Sec. 1214.1103  Application cutoff date.

    (a) The JSC Director, or designee, is responsible for identifying 
the need for additional astronaut candidates and for obtaining necessary 
approval to make selections.
    (b) Once such approval has been obtained, a cutoff date for the 
acceptance of applications will be established. Applications received 
after the date of the request will be maintained and processed for the 
next selection.

[54 FR 37940, Sept. 14, 1989, as amended at 68 FR 19948, Apr. 23, 2003]



Sec. 1214.1104  Evaluation and ranking of highly qualified candidates.

    (a) A selection board consisting of discipline experts, and such 
other persons as appropriate, will further evaluate and rank the 
``Highly Qualified'' applicants.
    (b) Efforts will be made to assure that minorities and females are 
included on this board.
    (c) The ``Highly Qualified'' applicants who are determined to be the 
``Best Qualified'' will be invited to the Johnson Space Center for an 
interview, orientation, and detailed medical evaluation.
    (d) Background investigations will normally be initiated on those 
applicants rated ``Best Qualified.''

[54 FR 37940, Sept. 14, 1989, as amended at 68 FR 19948, Apr. 23, 2003]



Sec. 1214.1105  Final ranking.

    Final rankings will be based on a combination of the selection 
board's initial evaluations and the results of the interview process. 
Veteran's preference will be included in this final ranking in 
accordance with applicable regulations.



Sec. 1214.1106  Selection of astronaut candidates.

    The selection board will recommend to the JSC Director its selection 
of candidates from among those finalists who are medically qualified. 
The number and names of candidates selected to be added to the corps 
will be approved, as required, by JSC/ NASA management and the Associate 
Administrator for Space Flight, prior to notifying the individuals or 
the public.



Sec. 1214.1107  Notification.

    Selectees and the appropriate military services will be notified and 
the public informed. All unsuccessful qualified applicants will be 
notified of nonselection and given the opportunity to update their 
applications and indicate their desire to receive consideration for 
future selections.

[[Page 145]]

Subparts 1214.12-1214.16 [Reserved]



               Subpart 1214.17--Space Flight Participants

    Authority: 42 U.S.C. 2473 and the National Aeronautics and Space Act 
of 1958, as amended.

    Source: 49 FR 17737, Apr. 25, 1984, unless otherwise noted.



Sec. 1214.1700  Scope.

    This subpart establishes NASA policy and selection procedures for 
accommodation of space flight participants aboard flights of the Space 
Shuttle.

[56 FR 47148, Sept. 18, 1991]



Sec. 1214.1701  Applicability.

    This subpart applies to NASA Headquarters and field installations.



Sec. 1214.1702  Relation to other part 1214 material.

    Except as specifically noted, all regulatory provisions of Space 
Shuttle policies also apply to space flight participants. In the event 
of any inconsistencies in the policies, the regulatory policies 
established for crew members will govern with respect to space flight 
participants.



Sec. 1214.1703  Definitions.

    (a) Space flight participants. All persons whose presence aboard a 
Space Shuttle flight is authorized in accordance with this regulation.
    (b) Committee. The Space Flight Participant Evaluation Committee, 
established in NASA Headquarters for the purpose of directing and 
administering the program for space flight participants. The Committee 
consists of the following NASA Headquarters officials: Associate Deputy 
Administrator (Chair), General Counsel, Associate Administrator for 
External Relations, Associate Administrator for Management, Associate 
Administrator for Space Flight, Associate Administrator for Public 
Affairs and Assistant Administrator for Equal Opportunity Programs.

[56 FR 47148, Sept. 18, 1991]



Sec. 1214.1704  Policy.

    (a) NASA policy is to provide Space Shuttle flight opportunities to 
persons (individuals outside the professional categories of NASA 
astronauts and payload specialists) whose presence onboard the Space 
Shuttle is not required for operation of payloads or for other essential 
mission activities, but is determined by the Administrator of NASA to 
contribute to other approved NASA objectives or to be in the national 
interest. However, flight opportunities for space flight participants 
will not be available in the near term. NASA will assess Shuttle 
operations and mission and payload requirements on an annual basis to 
determine when it can begin to allocate and assign space flight 
opportunities for future space flight participants, consistent with 
safety and mission considerations. When NASA determines that a flight 
opportunity is available for a space flight participant, first priority 
will be given to a ``teacher in space,'' in fulfillment of space 
education plans.
    (b) To be considered for selection as space flight participants, 
applicants must:
    (1) Be free of medical conditions which would either impair the 
applicant's ability to participate in, or be aggravated by, space 
flight, as determined by NASA physicians.
    (2) Be willing to undergo appropriate background investigation.
    (3) Be willing to undergo necessary training.
    (4) Meet additional requirements that may be stated in Announcements 
of Opportunity (AO) soliciting applications for particular spaceflights.
    (c) Persons accepted as space flight participant candidates will 
enter into an agreement with NASA for the period of training, flight, 
debriefing, and post-flight activities. The agreements will cover such 
pertinent matters as, but not limited to, responsibilities and 
authorities of the respective parties, compensation where appropriate, 
insurance, and liability.
    (d) Typically the selection of space flight participants will be 
based on their comparative abilities to fulfill the objectives and 
purposes stated in Announcement of Opportunities (AO's) covering one or 
more Space Shuttle

[[Page 146]]

missions in which their participation is desired. A NASA-designated 
outside review panel will evaluate the qualifications of applicants to 
select those who most appropriately meet those purposes of participant 
flight associated with the particular AO. NASA will retain the authority 
to make final selection of space flight participants for flight training 
and eventual flight from among those applicants rated most highly in the 
review process. NASA will encourage the participation of a wide and 
diverse array of participants, including women and minorities.

[49 FR 17737, Apr. 25, 1984, as amended at 56 FR 47148, Sept. 18, 1991]



Sec. 1214.1705  Selection of space flight participants.

    (a) The agency will publicly announce each space flight participant 
opportunity through appropriate means, including notice in the Federal 
Register and press releases. Each such Announcement of Opportunity will 
include a listing of basic qualification requirements to be met 
(including those of Sec. 1214.1704(b)), a statement of the specific 
National Aeronautics and Space Act purposes to which this opportunity is 
directed, what information is required of applicants to demonstrate 
their ability to fulfill those purposes, the criteria on which 
applicants will be judged, and administrative information such as to 
whom applications should be directed, the opening and closing dates for 
applications, and any other information or matters determined to be 
pertinent to the program in general and/or the specific flight.
    (b) All applications received in response to the AO will be screened 
to eliminate those applicants not meeting the basic qualification 
requirements.
    (c) Remaining applications will be forwarded to the outside review 
panel established for the announcement in question and composed of 
members appropriate to the specific purposes stated in that 
announcement. The review panel will evaluate all the applications and 
recommend to NASA a list of those applicants who appear most likely to 
meet the purposes.
    (d) NASA selection of applicants qualified to undergo necessary 
training and be certified for flight will be made by the Committee, 
based upon criteria that include:
    (1) Recommendation of the outside review panel.
    (2) Ability to undergo successfully the necessary period of training 
to ensure adaptation to flight experience and mission activities.
    (3) Ability to pass medical and psychological examinations to 
minimize the possibility of hazard to persons or missions.
    (4) Adaptability to living and working in space.
    (5) Willingness to enter into an agreement with NASA covering pre-
flight, flight, and post-flight activities, with individual rights and 
responsibilities set forth in that agreeement.
    (6) Satisfactory completion of a background investigation conducted 
to NASA's standards as adjudicated by the NASA Security Officer.
    (e) The Committee will submit a list of those candidates suitable 
for selection to the NASA Administrator, who will select the requisite 
number to undergo the necessary training to prepare them for space 
flight.
    (f) Those candidates who successfully complete the training will 
become qualified as space flight participants. Flight assignments will 
be made by the Administrator from this qualified group. NASA reserves 
the right to solicit additional space flight participant applications, 
if necessary.
    (g) Authority to officially designate candidates for training, 
certify candidates as qualified space flight participants, and assign 
space flight participants to specific Space Shuttle flights is reserved 
to the Administrator.



Sec. 1214.1706  Program management.

    The Associate Administrator for Space Flight is responsible for 
program management under the direction of the Committee chairperson.



Sec. 1214.1707  Media and public inquiries.

    (a) The Associate Administrator for External Relations will respond 
to all inquiries directed to the agency concerning space flight 
participants and the process by which they are selected.

[[Page 147]]

    (b) The names of all applicants will be withheld from public release 
until the space flight participants are selected by the Administrator.



PART 1215--TRACKING AND DATA RELAY SATELLITE SYSTEM (TDRSS)--Table of Contents




  Subpart 1215.1--Use and Reimbursement Policy for Non-U.S. Government 
                                  Users

Sec.
1215.100 General.
1215.101 Scope.
1215.102 Definitions.
1215.103 Services.
1215.104 Apportionment and assignment of services.
1215.105 Delivery of user data.
1215.106 User command and tracking data.
1215.107 User data security and frequency authorizations.
1215.108 Defining user service requirements.
1215.109 Scheduling user service.
1215.110 User cancellation of all services.
1215.111 User postponement of service.
1215.112 User/NASA contractual arrangement.
1215.113 User charges.
1215.114 Service rates.
1215.115 Payment and billing.

Appendix A to Part 1215--Estimated Service Rates in 1997 Dollars for 
          TDRSS Standard Services (Based on NASA Escalation Estimate)
Appendix B to Part 1215--Factors Affecting Standard Charges
Appendix C to Part 1215--Typical User Activity Timeline

    Authority: Sec. 203, Pub. L. 85-568, 72 Stat. 429, as amended; 42 
U.S.C. 2473.

    Source: 48 FR 9845, Mar. 9, 1983, unless otherwise noted.



  Subpart 1215.1--Use and Reimbursement Policy for Non-U.S. Government 
                                  Users



Sec. 1215.100  General.

    The TDRSS represents a major investment by the U.S. Government with 
the primary goal of providing improved tracking and data acquisition 
services to spacecraft in low earth orbit or to mobile terrestrial users 
such as aircraft or balloons. It is the objective of NASA to operate as 
efficiently as possible with the TDRSS. This is to the mutual benefit of 
all users. Such user consideration will permit NASA and non-NASA service 
to be delivered without compromising the mission objectives of any 
individual user. To encourage users toward achieving efficient TDRSS 
usage, this reimbursement policy has been established to purposely 
influence users to operate with TDRSS in the most efficient and orderly 
manner possible. Additionally, the reimbursement policy is designed to 
comply with the Bureau of the Budget Circular A-25 on User Charges, 
dated September 23, 1959, which requires that a reasonable charge should 
be made to each identifiable recipient for a measurable unit or amount 
of Government service or property from which a special benefit is 
derived.

[56 FR 28048, June 19, 1991]



Sec. 1215.101  Scope.

    This subpart sets forth the policy governing TDRSS services provided 
to non-U.S. government users and the reimbursement for rendering such 
services. It excludes TDRSS services provided as standard or optional 
services to Space Transportation System (STS) users under existing 
policy for Shuttle and Spacelab (14 CFR subparts 1214.1, 1214.2, and 
1214.8); i.e., user command and telemetry support, which utilizes and is 
a part of the Shuttle or Spacelab communications system, is a Shuttle/
Spacelab service. Cooperative missions are also not under the purview of 
this subpart. The arrangements for TDRSS services for cooperative 
missions will be covered in a Memorandum of Understanding (MOU), as a 
consequence of negotiations between NASA and the other concerned party. 
Any MOU which includes provision for any TDRSS service will require 
signatory concurrence by the Associate Administrator for Space 
Operations prior to dedicating Office of Space Operations resources for 
support of a cooperative mission.

[56 FR 28048, June 19, 1991]



Sec. 1215.102  Definitions.

    (a) User. Any non-U.S. Government representative or entity who 
contracts with NASA to use TDRSS services.
    (b) TDRSS. The Tracking and Data Relay Satellite System including 
Tracking and Data Relay Satellites (TDRS), the White Sands Ground 
Terminal (WSGT), and the necessary

[[Page 148]]

TDRSS operational areas, interface devices and NASA communication 
circuits to unify the above into a functioning system. It specifically 
excludes the user ground system/TDRSS interface.
    (c) Bit stream. The digital electronic signals acquired by TDRSS 
from the user craft or the user generated input commands for 
transmission to the user craft.
    (d) Flexible support. Support requests which permit NASA, at its 
option, to schedule service at any time during the period of a single 
orbit of the user mission. Missions requiring multiple support periods 
during a single orbit may be classified as constrained support.
    (e) Constrained support. Support requests which specify the exact 
times NASA is to provide service, or conditions of support which can be 
translated into exact times for service, such as sub-satellite 
positions, apogee/perigee position, etc., for which support is needed.
    (f) Scheduling service period. One scheduled contact utilizing a 
single TDRS whereby the user by requesting service is allotted a block 
of time for operations between the user satellite and TDRSS.



Sec. 1215.103  Services.

    (a) Standard services. These are services which the TDRSS is capable 
of providing to low-earth orbital user spacecraft or other terrestrial 
users.
    (1) Tracking services.
    (2) Data acquisition service.
    (3) Command transmission service.
    (4) Emergency line outage recording in the event of a communications 
failure between White Sands, Goddard Space Flight Center (GSFC), and 
Johnson Space Center (JSC).
    (5) A weekly user spacecraft orbit determination in NASA standard 
orbital elements as determined by NASA for TDRSS target acquisition 
purposes.
    (6) Delivery of user data at the NASA Ground Terminal (NGT) located 
at White Sands.
    (7) Pre-launch support for data flow test and related activities 
which require use of a TDRS.
    (8) Pre-launch support planning and documentation.
    (9) Scheduling user services via TDRSS.
    (10) Access to tracking data to enable users to perform orbit 
determination at their option.
    (b) Mission unique services. Other tracking and data services 
desired by the user beyond the standard service and the charges 
therefor, will be identified and assessed on a case-by-case basis.



Sec. 1215.104  Apportionment and assignment of services.

    No user may apportion, assign, or otherwise convey to any third 
party its TDRSS service. Each user may obtain service only through 
contractual agreement with the Associate Administrator for Space 
Operations.

[56 FR 28048, June 19, 1991]



Sec. 1215.105  Delivery of user data.

    (a) As a standard service, NASA will provide to the user its data 
from the TDRSS as determined by NASA in the form of one or more digital 
or analog bit streams synchronized to associated clock streams at the 
NGT.
    (b) User data handling requirements beyond the NGT interface will be 
provided as a standard service to the user, to the extent that the 
requirements do not exceed NASA's planned standard communications 
system. Any additional data transport or handling requirements exceeding 
NASA's capability will be dealt with as a mission-unique service.
    (c) No storage of the user data is provided in the standard service. 
NASA will provide short-term temporary recording of data at White Sands, 
only in event of a NASA Communications Network (NASCOM) link outage.
    (d) NASA will provide TDRSS services on a ``reasonable efforts'' 
basis and, accordingly, will not be liable for damages of any kind to 
the user or third parties for any reason, including but not limited to 
failure to provide contracted-for services. The price for TDRSS services 
does not include a contingency or premium for any potential damages. The 
user will assume any

[[Page 149]]

risk of damages or obtain insurance to protect against any risk.

[48 FR 9845, Mar. 9, 1983, as amended at 56 FR 28049, June 19, 1991]



Sec. 1215.106  User command and tracking data.

    (a) User command data may enter the TDRSS via the NASCOM interface 
at one of three locations:
    (1) For Shuttle payloads which utilize the Shuttle commanding 
system, command data must enter the system via the Johnson Space Center 
(JSC) and is governed by the policies established for STS services (see 
Sec. 1215.101).
    (2) For free flyers and other payloads, command data must enter the 
system at the Goddard Space Flight Center (GSFC) if it is to be a 
standard service.
    (3) The use of other command data entry points [e.g., the NASA 
Ground Terminal (NGT) at White Sands, NM, or Johnson Space Center (JSC), 
for payloads using an independent direct link from TDRS to the user 
payload] is considered to be a mission unique service.
    (b) NASA is required to maintain the user satellite orbital elements 
to sufficient accuracy to permit the TDRS system to establish and 
maintain acquisition. This can be accomplished in two ways:
    (1) The user can provide the orbital elements in a NASA format to 
GSFC to meet TDRSS operational requirements.
    (2) The user shall insure that a sufficient quantity of tracking 
data is received at GSFC to permit the determination of the user 
satellite orbital elements. The charges for this service will be 
determined by using the on-orbit service rates.



Sec. 1215.107  User data security and frequency authorizations.

    (a) User data security is not provided by the TDRSS. Responsibility 
for data security resides solely with the user. Users desiring data 
safeguards shall provide and operate, external to the TDRSS, the 
necessary equipment or systems to accomplish data security. Any such 
user provisions must be compatible with data flow through TDRSS and not 
interfere with other users.
    (b) All radio frequency authorizations associated with operations 
pursuant to this directive are the responsibility of the user. If 
appropriate, authority(ies) must be obtained from the Federal 
Communications Commission (FCC) for operations consistent with U.S. 
footnote 303 of the National Table of Frequency Allocations, FCC Rules 
and Regulations, at 47 CFR 2.106.

[56 FR 28049, June 19, 1991]



Sec. 1215.108  Defining user service requirements.

    Potential users should become familiar with TDRSS capabilities and 
constraints, which are detailed in the TDRSS User's Guide (GSFC 
document, STDN No. 101.2), as early as possible. This action allows the 
user to evaluate the trade-offs available among various TDRSS services, 
spacecraft design, operations planning, and other significant mission 
parameters. When these user evaluations have been completed, and the 
user desires to use TDRSS, the user should initiate a request for TDRSS 
service.
    (a) Initial requests for TDRSS service from non-U.S. Government 
users should be addressed to NASA Headquarters, Code OX, Space Network 
Division, Washington, DC 20546. Upon review and preliminary acceptance 
of the service requirements by NASA Headquarters, the appropriate areas 
of GSFC will be assigned to the project to produce the detailed 
requirements, plans and documentation necessary for support of the 
mission. Changes to user requirements shall be made as far in advance as 
possible and shall be submitted in writing to both NASA Headquarters, 
Code OX, Space Network Division, and GSFC, Code 501, Greenbelt, MD 
20771.
    (b) Acceptance of user requests for TDRSS service is the sole 
prerogative of NASA. Although TDRSS represents a significant increase to 
current support capabilities, service capacity is finite, and service 
will be provided in accordance with operational priorities established 
by NASA. Request for services within priority groups shall be negotiated 
with non-NASA users on a first come, first service basis for inclusion 
into the TDRSS mission model.

[48 FR 9845, Mar. 9, 1983, as amended at 56 FR 28049, June 19, 1991]

[[Page 150]]



Sec. 1215.109  Scheduling user service.

    (a) User service shall be scheduled only by NASA. Scheduling refers 
to that activity occurring after the user has been accepted and placed 
in the TDRSS mission model as specified in Sec. 1215.108(b). See 
appendix C for a description of a typical user activity timeline.
    (b) Schedule conflict will be resolved in general by application of 
principles of priority to user service requirements. Services shall be 
provided either as normally scheduled service or as emergency/disruptive 
update service. Priorities will be different for emergency/disruptive 
updates than for normal services.
    (1) Normally scheduled service is service which is planned and 
ordered under normal operational conditions and is subject to schedule 
conflict resolution under normal service priorities. Priorities are 
established by the NASA Administrator or his/her designee. Requests for 
normally scheduled service must be received by the schedulers at the 
GSFC Network Control Center (NCC) no later than 45 minutes prior to 
requested support time.
    (2) Normal scheduling principles of priority are generally ordered 
as follows beginning with the highest priority:
    (i) Launch, reentry, landing of the STS Shuttle, or other NASA 
launches.
    (ii) NASA payloads/spacecraft.
    (iii) Other payloads/spacecraft of interest to the United States.
    (iv) Other payloads/spacecraft launched by a NASA launch vehicle.
    (v) Other payloads/spacecraft.
    (vi) Support of other launches.
    (3) Exceptions to these priorities may be determined on a case-by-
case basis with the NASA Administrator or his/her designee as the 
priorities stated in paragraph (b)(2) of this section are indicative of 
general rather than specific cases.
    (4) Emergency service conditions are those requiring rapid response 
to changing user service requirements. Emergency service may be 
instituted under the following conditions:
    (i) Circumstances which pose a threat to the security of the United 
States.
    (ii) Circumstances which threaten human life.
    (iii) Circumstances which threaten user mission loss.
    (iv) Other circumstances of such a nature which make it necessary to 
preempt normally scheduled services.
    (5) At times, emergency service requirements will override normal 
schedule priority. Under emergency service conditions, disruptions to 
schedule service will occur. As a consequence, users requiring emergency 
service shall be charged for emergency service at rate factors set forth 
in appendix B.
    (6) Disruptive updates are scheduled updates which, by virtue of 
priorities, cause previously scheduled user services to be rescheduled 
or deleted or are requested by the user less than 45 minutes prior to 
the scheduled support period.
    (i) Disruptive updates will be charged at the same rates as 
emergency service. User initiated schedule requests which are received 
less than 45 minutes prior to the requested schedule support time will 
be considered a disruptive update.
    (ii) User initiated schedule requests which are received more than 
45 minutes and less than 12 hours prior to the scheduled support period 
will be acted upon as a routine input provided other users are 
unaffected. If other users are affected, the scheduling input will be 
considered a disruptive update and the appropriate charge factor will be 
applied.
    (iii) The Network Control Center (NCC) at GSFC reserves the sole 
right to schedule, reschedule or cancel TDRSS service. Schedule changes 
brought about through no fault of the user are not charged the factor 
for a disruptive update.
    (7) While the priority listing remains the general guide for 
establishing support availability, the NASA schedulers will exercise 
judgment and endeavor to see that lower priority users are not excluded 
from a substantial portion of their contracted-for service due to the 
requirements of higher priority users.
    (8) When a user contracts for TDRSS service for an ``operational 
satellite'' which interfaces with a significant number of national and 
world-wide users on a regularly scheduled basis as

[[Page 151]]

opposed to a ``research and development satellite,'' NASA will place 
special emphasis on the operational requirement when planning schedules. 
This should reduce the probability of losing perishable operational data 
such as meteorological, climate, or earth resources information.
    (c) General user service requirements, which will be used for 
preliminary planning and mission modeling, should include as a minimum, 
the following;
    (1) Date of service initiation.
    (2) Expected date of service termination.
    (3) The type of TDRSS services desired [e.g., multiple access, 
tracking, etc.].
    (4) The frequency and duration of each service, including orbital 
position or time constraints on service delivery from a given spacecraft 
where appropriate.
    (5) Orbital or trajectory parameters and tracking data requirements.
    (6) Spacecraft events affecting tracking, telemetry or command 
requirements.
    (7) Signal parameters and data rates by type of service, type and 
location of antennas and other related information dealing with user 
tracking, command, and data systems.
    (8) Special test requirements, compatibility testing, data flows, 
simulations, etc.
    (9) Identification of type and quantity of user information 
necessary for control functions, location of user control facility, and 
identification of communications requirements.
    (10) Identification of ground communications requirements and 
interface points, including the level of support to be requested from 
NASCOM.
    (d) To provide for effective planning, general service requirements 
should be provided at least 3 years before initiation of service. With 
these data NASA will determine whether the requested services can be 
provided.
    (e) Detailed requirements for user services must be provided 18 
months before the initiation of service. These data will be the basis 
for the technical definition of the Interface Control Document (ICD). If 
requirements are received late, necessitating extraordinary NASA 
activities [e.g., overtime, special printing of documents], such 
activities will be considered to be mission unique and their cost 
charged the user.

[48 FR 9845, Mar. 9, 1983, as amended at 56 FR 28049, June 19, 1991]



Sec. 1215.110  User cancellation of all services.

    The user has the right to terminate its service contract with NASA 
at any time. A user who exercises this right after contracting for 
service shall pay the charge agreed upon for services previously 
rendered, and the cost incurred by the Government for support of pre-
launch activities, services, and mission documentation not included in 
that charge. The user will remain responsible for the charges for any 
services actually provided.



Sec. 1215.111  User postponement of service.

    The user may postpone the initiation of contracted service (e.g., 
user launch date) by delivery of written notification to NASA 
Headquarters, Code OX. Any delay in the contracted start of service date 
may affect the quantity of service to be provided due to commitments to 
other support requirements. Therefore, the validity of previous 
estimates of predicted support availability may no longer be applicable.

[56 FR 28049, June 19, 1991]



Sec. 1215.112  User/NASA contractual arrangement.

    (a) The NASA Administrator reserves the right to waive any portion 
of the reimbursement due to NASA under the provisions of the 
reimbursement policy.
    (b) When NASA has determined that a potential user has not made 
sufficient progress toward concluding a contractual arrangement for 
service, after being placed in a mission model, NASA shall have the 
unilateral right to remove that user from the mission model.
    (c) NASA shall have the right to determine unilaterally that the 
potential user has failed to make progress toward concluding a 
contractual arrangement.

[[Page 152]]



Sec. 1215.113  User charges.

    (a) The user shall reimburse NASA the sum of the charges for 
standard and mission-unique services. Charges will be based on the 
service rates applicable for the calendar year.
    (b) For standard services the user shall be charged only for 
services rendered, except that if a total cancellation of service 
occurs, the users shall be charged in accordance with the provisions of 
Sec. 1215.110.
    (1) Standard services which are scheduled, and then cancelled by the 
user less than 12 hours prior to the start of that scheduled service 
period, will be charged as if the scheduled service actually occurred.
    (2) The time scheduled by the user project shall include the slew 
time, set up and/or configuration time, TDRSS contact time, and all 
other conditions for which TDRSS services were allocated to the user.
    (3) Charges will be accumulated by the minute, based on the 
computerized schedule/configuration messages which physically set up the 
TDRSS equipment at the start of a support period and free the equipment 
for other users at the end of a support period.
    (c) The user shall reimburse NASA for the costs of any mission 
unique services provided by NASA.
    (d) Any person or entity which pays to NASA the initial 
administrative charge (see Sec. 1215.115) does so with the 
understanding that it is not refundable whether or not an agreement is 
entered into with NASA for TDRSS services.

[48 FR 9845, Mar. 9, 1983, as amended at 56 FR 28049, June 19, 1991]



Sec. 1215.114  Service rates.

    (a) Non-U.S. Government user rates will reflect TDRSS total 
operational and maintenance costs prorated to a per-minute basis.
    (b) Rates for TDRSS services will be set by the Associate 
Administrator for Space Operations each October for the following year, 
January through December. Rate variations will reflect changes in 
operating costs, loading formulas and escalation.
    (c) Projected estimates will include escalation bases on the Bureau 
of Labor Statistics Index for compensation per hour--total private.
    (d) Appendix A is provided for preliminary planning purposes only. 
It delineates the rate per minute by service and type of user. These 
rates are subject to change.
    (e) The per minute charge for TDRSS service is computed by 
multiplying the charge per minute for the appropriate service by the 
number of minutes scheduled and the appropriate factor (for flexible, 
constrained or disruptive/emergency service).

[48 FR 9845, Mar. 9, 1983, as amended at 49 FR 10659, Mar. 22, 1984; 56 
FR 28049, June 19, 1991]



Sec. 1215.115  Payment and billing.

    (a) To each user there will be an initial non-refundable 
administrative charge of $25,000 which is applicable toward TDRSS 
operational services.
    (b) The procedure for billing and payment of standard TDRSS services 
is as follows:
    (1) The calendar year is divided into two service periods, January 
through June and July through December. The charge for TDRSS service 
will be determined in October for the succeeding calendar year.
    (2) The estimated cost of service, January through June period, will 
be due the previous July 1, and will be billed 60 days prior to the 
payment due date.
    (3) The estimated cost of service, July through December period, 
will be due the previous January 1, and will be billed 60 days prior to 
the payment due date.
    (4) Adjustments to the amounts prepaid will be made to the 
succeeding billings as the actual service time is tabulated. Amounts due 
to the user will be credited to the next service period or refunded to 
the user if no more service is to be provided.
    (5) The total estimated cost of all standard pre-launch services 
such as mission planning, documentation, link analysis, testing, 
computer, human resources, etc., with the exception of TDRSS operational 
services, will be paid to the Government prior to NASA rendering such 
services. This advance payment will be applied as a credit to the 
charges billed for post-launch

[[Page 153]]

TDRSS operational services as specified in paragraphs (b) (1) through 
(4) of this section.
    (c) Payment schedules for mission unique services will be mutually 
developed between NASA the user on a case-by-case basis, dependent upon 
level of engineering effort, long-lead items, special communication 
services or other considerations. Payment will generally be made prior 
to NASA incurring a cost for mission unique service.
    (d) Late payments by the user will require the user to pay a late 
payment charge equal to 1\1/2\% per month of the unpaid balance 
calculated daily from the date the payment was due until the date 
payment is made.

  Appendix A to Part 1215--Estimated Service Rates in 1997 Dollars for 
       TDRSS Standard Services (Based on NASA Escalation Estimate)

    TDRSS user service rates for services rendered in CY-97 based on 
current projections in 1997 dollars are as follows:
    1. Single Access Service--Forward command, return telemetry, or 
tracking, or any combination of these, the base rate is $184.00 per 
minute for non-U.S. Government users.
    2. Multiple Access Forward Service--Base rate is $42.00 per minute 
for non-U.S. Government users.
    3. Multiple Access Return Service--Base rate is $13.00 per minute 
for non-U.S. Government users.
    Due to the advent of commercial launch service customers, an 
addendum will be required to reflect rates for service rendered under 
the Commercial Space Launch Act (CSLA). Due to statutory requirements, 
the rates are slightly different for CSLA customers.
    CSLA customer rates:
    1. Single Access Service--Base rate is $180 per minute for CSLA 
users.
    2. Multiple Access Forward Service--Base rate is $39 per minute for 
CSLA users.
    3. Multiple Access Return Service--Base rate is $13 per minute for 
CSLA users.

[61 FR 46713, Sept. 5, 1996]

       Appendix B to Part 1215--Factors Affecting Standard Charges

    Charges for services shall be determined by multiplying the factors 
below by the base rates for standard services set forth in appendix A.

------------------------------------------------------------------------
                                                               Emergency
                                                   Time or     service,
                                       Flexible    position   disruptive
                                                 constrained    updates
------------------------------------------------------------------------
Single access service................       .5            1            2
Multiple access forward (command)          .67            1            2
 service.............................
------------------------------------------------------------------------


------------------------------------------------------------------------
                                                               Emergency
                                                    Normally   service,
                                                   scheduled  disruptive
                                                    support     updates
------------------------------------------------------------------------
Multiple access return (telemetry) service.......          1           2
------------------------------------------------------------------------

         Appendix C to Part 1215--Typical User Activity Timeline

------------------------------------------------------------------------
           Time (approximate)                        Activity
------------------------------------------------------------------------
Project conceptualization (At least 3    Request NASA Headquarters
 years before launch; Ref. Sec.          perform study to determine
 1215.108(a)).                            availability of TDRSS. If
                                          accepted as a user, begin
                                          contractual negotiation by
                                          submission of $25,000 non-
                                          refundable charge, and place
                                          into mission model.
3 years before launch (Ref. Sec.        Submit general user
 1215.109(c)..                            requirements to permit
                                          preliminary planning. Begin
                                          payment for pre-mission
                                          activities (Ref. Sec.
                                          1215.115(b)(5)).
18 months before launch (earlier if      Provide detailed requirements
 interfacing is expected)..               for technical definition and
                                          development of operational
                                          documents and ICD's. (Ref.
                                          Sec. 1215.109(e)). If
                                          appropriate, initiate action
                                          with the Federal
                                          Communications Commission for
                                          license to communicate with
                                          TDRSS at least 18 months prior
                                          to launch (Ref. Sec.
                                          1215.107(b)).
3 weeks prior to a scheduled support     Submit scheduling request to
 period (SSP). 2 weeks prior to an SSP.   GSFC covering a weekly period.
                                          Receive schedule from GSFC
                                          based on principles of
                                          priority (Ref. Sec.
                                          1215.109(b)(2)).
                                          Acknowledgement to GSFC
                                          required.
Up to 12 hours prior to an SSP.........  Can cancel an SSP without
                                          charge (Ref. Sec.
                                          1215.113(a)(1)).
Up to 45 minutes prior to an SPP.......  Can schedule an SSP if a time
                                          slot is available without
                                          impacting another user.
Between SSP minus 45 minutes and the     Schedule requests will be
 SSP..                                    charged at the disruptive
                                          update rate (Ref. Sec.
                                          1215.109(b)(5)).
Real-Time..............................  Emergency service requests will
                                          be responded to per the
                                          priority system (Ref. Sec.
                                          1215.109(b)(3)) and assessed
                                          the emergency service rate.
------------------------------------------------------------------------


[56 FR 28049, June 19, 1991]

[[Page 154]]



PART 1216--ENVIRONMENTAL QUALITY--Table of Contents




       Subpart 1216.1--Policy on Environmental Quality and Control

Sec.
1216.100 Scope.
1216.101 Applicability.
1216.102 Policy.
1216.103 Responsibilities of NASA officials.

           Subpart 1216.2--Floodplain and Wetlands Management

1216.200 Scope.
1216.201 Applicability.
1216.202 Responsibility of NASA officials.
1216.203 Definition of key terms.
1216.204 General implementation requirements.
1216.205 Procedures for evaluating NASA actions impacting floodplains 
          and wetlands.

 Subpart 1216.3--Procedures for Implementing the National Enviromental 
                            Policy Act (NEPA)

1216.300 Scope.
1216.301 Applicability.
1216.302 Definition of key terms.
1216.303 Responsibilities of NASA officials.

                            Agency Procedures

1216.304 Major decision points.
1216.305 Criteria for actions requiring environmental assessments.
1216.306 Preparation of environmental assessments.
1216.307 Scoping.
1216.308 Preparation of draft statements.
1216.309 Public involvement.
1216.310 Preparation of final statements.
1216.311 Record of the decision.
1216.312 Timing.
1216.313 Implementing and monitoring the decision.
1216.314 Tiering.
1216.315 Processing legislative environmental impact statements.
1216.316 Cooperating with other agencies and individuals.
1216.317 Classified information.
1216.318 Deviations.

                           Other Requirements

1216.319 Environmental resources document.
1216.320 Environmental review and consultation requirements.
1216.321 Environmental effects abroad of major Federal actions.



       Subpart 1216.1--Policy on Environmental Quality and Control

    Authority: The National Aeronautics and Space Act of 1958, as 
amended (42 U.S.C. 2451 et seq.); the National Environmental Policy Act 
of 1969 (NEPA), as amended (42 U.S.C. 4321 et seq.); the Environmental 
Quality Improvement Act of 1970, as amended (42 U.S.C. 4371 et seq.); 
sec. 309 the Clean Air Act, as amended (42 U.S.C. 7609); E.O. 11514 
(Mar. 5, 1970, as amended by E.O. 11991, May 24, 1977); the Council on 
Environmental Quality NEPA Regulations (40 CFR part 1500-1508); and E.O. 
12114, Jan. 4, 1979 (44 FR 1957).

    Source: 44 FR 44485, July 30, 1979, unless otherwise noted.



Sec. 1216.100  Scope.

    This subpart sets forth NASA policy on environmental quality and 
control and the responsibilities of NASA officials in carrying out these 
policies.



Sec. 1216.101  Applicability.

    This subpart is applicable to NASA Headquarters and field 
installations.



Sec. 1216.102  Policy.

    NASA policy is to:
    (a) Use all practicable means, consistent with NASA's statutory 
authority, available resources, and the national policy, to protect and 
enhance the quality of the environment;
    (b) Provide for proper attention to and ensure that environmental 
amenities and values are given appropriate consideration in all NASA 
actions, including those performed under contract, grant, lease, or 
permit;
    (c) Recognize the worldwide and long-range character of 
environmental concerns and, when consistent with the foreign policy of 
the United States and its own responsibilities, lend appropriate support 
to initiatives, resolutions, and programs designed to maximize 
international cooperation in anticipating and preventing a decline in 
the quality of the world environment;
    (d) Use systematic and timely approaches which will ensure the 
integrated use of the natural and social sciences and environmental 
design arts in planning and decisionmaking for actions which may have an 
impact on the human environment;

[[Page 155]]

    (e) Pursue research and development, within the scope of NASA's 
authority or in response to authorized agencies, for application of 
technologies useful in the protection and enhancement of environmental 
quality;
    (f) Initiate and utilize ecological and other environmental 
information in the planning and development of resource-oriented 
projects; and
    (g) Invite cooperation, where appropriate, from Federal, State, 
local, and regional authorities and the public in NASA planning and 
decisionmaking processes.



Sec. 1216.103  Responsibilities of NASA officials.

    (a) The Associate Administrator for Management or designee shall:
    (1) Coordinate the formulation and revision of NASA policies and 
positions on matters pertaining to environmental protection and 
enhancement;
    (2) Represent NASA in working with other governmental agencies and 
interagency organizations to formulate, revise, and achieve uniform 
understanding and application of governmentwide policies relating to the 
environment;
    (3) Develop and ensure the implementation of agencywide standards, 
procedures, and working relationships for protection and enhancement of 
environmental quality and compliance with applicable laws and 
regulations;
    (4) Develop, as an integral part of NASA's basic decision processes, 
procedures to ensure that environmental factors are properly considered 
in all proposals and decisions;
    (5) Establish and maintain working relationships with the Council on 
Environmental Quality, Environmental Protection Agency, and other 
national, state, and local governmental agencies concerned with 
environmental matters;
    (6) Acquire information for and ensure the preparation of 
appropriate NASA reports on environmental matters.
    (b) Officials-in-Charge of Headquarters Offices and NASA Field 
Installation Directors are responsible for:
    (1) Identifying matters under their cognizance which may affect 
protection and enhancement of environmental quality and for employing 
the proper procedures to ensure that necessary actions are taken to meet 
the requirements of applicable laws and regulations;
    (2) Coordinating environmental quality-related activities under 
their cognizance with the Associate Administrator for Management; and
    (3) Supporting and assisting the Associate Administrator for 
Management on request.
    (c) Officials-in-Charge of Headquarters Offices are additionally 
responsible for:
    (1) Giving high priority, in the pursuit of program objectives, to 
the identification, analysis, and proposal of research and development 
which, if conducted by NASA or other agencies, may contribute to the 
achievement of beneficial environmental objectives; and
    (2) In coordination with the Associate Administrator for Management, 
making available to other parties, both governmental and 
nongovernmental, advice and information useful in protecting and 
enhancing the quality of the environment.
    (d) NASA Field Installation Directors are additionally responsible 
for:
    (1) Implementing the NASA policies, standards and procedures for the 
protection and enhancement of environmental quality and supplementing 
them as appropriate in local circumstances;
    (2) Specifically assigning responsibilities for environmental 
activities under the installation's cognizance to appropriate 
subordinates, while providing for the coordination of all such 
activities; and
    (3) Establishing and maintaining working relationships with 
national, state, regional and governmental agencies responsible for 
environmental regulations in localities in which the field installations 
conduct their activities.

[44 FR 44485, July 30, 1979, as amended at 53 FR 9760, Mar. 25, 1988]



           Subpart 1216.2--Floodplain and Wetlands Management

    Authority: E.O. 11988 and E.O. 11990, as amended; 42 U.S.C. 
2473(c)(1).

[[Page 156]]


    Source: 44 FR 1089, Jan. 4, 1979, unless otherwise noted.



Sec. 1216.200  Scope.

    This subpart 1216.2 prescribes procedures to:
    (a) Avoid long- and short-term adverse impacts associated with the 
occupancy and modification of floodplains and wetlands;
    (b) Avoid direct or indirect support of floodplain and wetlands 
development wherever there is a practicable alternative;
    (c) Reduce the risk of flood loss;
    (d) Minimize the impact of floods on human health, safety and 
welfare;
    (e) Restore, preserve and protect the natural and beneficial values 
served by floodplains and wetlands;
    (f) Develop an integrated process to involve the public in the 
floodplain and wetlands management decision-making process;
    (g) Incorporate the Unified National Program for Flood Plain 
Management; and,
    (h) Establish internal management controls to monitor NASA actions 
to assure compliance with the Orders.



Sec. 1216.201  Applicability.

    These procedures are applicable to Federal lands and facilities 
under the management control of NASA Headquarters and field 
installations regardless of location.



Sec. 1216.202  Responsibility of NASA officials.

    (a) Directors of Field Installations and, as appropriate, the 
Associate Administrator for Management at NASA Headquarters, are 
responsible for implementing the requirements and procedures prescribed 
in Sec. Sec. 1216.204 and 1216.205.
    (b) The Assistant Associate Administrator for Facilities 
Engineering, NASA Headquarters, is responsible for overall coordination 
of floodplain and wetlands management activities, and for conducting 
periodic on-site reviews of each Installation's floodplain and wetlands 
management activities, and for conducting periodic on-site reviews of 
each Installation's floodplain and wetlands management activities to 
assure compliance with the Executive orders.

[53 FR 9760, Mar. 25, 1988, as amended at 56 FR 50506, Oct. 7, 1991]



Sec. 1216.203  Definition of key terms.

    (a) Action--any NASA activity including, but not limited to, 
acquisition, construction, modification, changes in land use, issuance 
of facilities use permits, and disposition of Federal lands and 
facilities.
    (b) Base flood--is that flood which has a one percent chance of 
occurrence in any given year (also known as a 100-year flood). This term 
is used in the National Flood Insurance Program (NFIP) to indicate the 
minimum level of flooding to be used by a community in its floodplain 
management regulations.
    (c) Base floodplain--the 100-year floodplain (one percent chance 
floodplain). Also see definition of floodplain.
    (d) Critical action--any activity for which even a slight chance of 
flooding would be too great, such as storing lunar samples or highly 
toxic or water reactive materials.
    (e) Facility--any item made or placed by a person including 
buildings, structures and utility items, marine structures, bridges and 
other land development items, such as levees and drainage canals.
    (f) Flood or flooding--a general and temporary condition of partial 
or complete inundation of normally dry land areas from the overflow of 
inland and/or tidal waters, and/or the unusual and rapid accumulation or 
runoff of surface waters from any source.
    (g) Flood fringe--that portion of the floodplain outside of the 
regulatory floodway (often referred to as ``floodway fringe'').
    (h) Floodplain--the lowland and relatively flat areas adjoining 
inland and coastal waters including flood-prone areas of offshore 
islands, including at a minimum, that area subject to a one percent or 
greater chance of flooding in any given year. The base floodplain shall 
be used to designate the 100-year floodplain (one percent chance 
floodplain). The critical action floodplain is defined as the 500-year 
floodplain (0.2

[[Page 157]]

percent chance floodplain). A large portion of NASA coastal floodplains 
also encompasses wetlands.
    (i) Floodproofing--the modification of individual structures and 
facilities, their sites, and their contents to protect against 
structural failure, to keep water out or to reduce the effects of water 
entry.
    (j) Minimize--to reduce to the smallest possible amount or degree.
    (k) One percent chance flood--the flood having one chance in 100 of 
being exceeded in any one-year period (a large flood). The likelihood of 
exceeding this magnitude increases in a time period longer than one 
year, e.g., there are two chances in three of a larger flood exceeding 
the one percent chance flood in a 100-year period.
    (l) Practicable--capable of being done within existing constraints. 
The test of what is practicable depends upon the situation and includes 
consideration of the pertinent factors, such as environment, cost or 
technology.
    (m) Preserve--to prevent modification to the natural floodplain 
environment or to maintain it as closely as possible to its natural 
state.
    (n) Regulatory floodway--the area regulated by Federal, State or 
local requirements; the channel of a river or other watercourse and the 
adjacent land areas that must be reserved in an open manner; i.e., 
unconfined or unobstructed either horizontally or vertically to provide 
for the discharge of the base flood so the cumulative increase in water 
surface elevation is no more than a designated amount (not to exceed one 
foot as set by the National Flood Insurance Program (NFIP)).
    (o) Restore--to re-establish a setting or environment in which the 
natural functions of the floodplain can again operate.
    (p) Wetlands--those areas that are frequently inundated by surface 
or ground water and normally support a prevalence of vegetative or 
aquatic life that requires saturated or seasonally saturated soil 
conditions for growth and reproduction. Wetlands generally include 
swamps, marshes, bogs, and similar areas such as sloughs, potholes, 
river overflows, mud flats, wet meadows, and natural ponds. Because all 
NASA wetlands lie in floodplains, and for purposes of simplifying the 
procedures of this subpart, floodplains will be understood as to 
encompass wetlands, except in cases where wetlands factors require 
special consideration. (Also, see definition of floodplain.)
    (q) Support--actions which encourage or otherwise provide incentives 
to undertake floodplain or wetlands development, such as extending roads 
or utilities into or near a floodplain, therefore making floodplain 
development more feasible.



Sec. 1216.204  General implementation requirements.

    (a) Each NASA Field Installation shall prepare, if not already 
available, an Installation base floodplain map based on the latest 
information and advice of the appropriate District Engineer, Corps of 
Engineers, or, as appropriate, the Director of the Federal Emergency 
Management Agency. The map shall delineate the limits of both the 100-
year and 500-year floodplains. A copy of the map, approved by the Field 
Installation Director, will be provided to the Assistant Associate 
Administrator for Facilities Engineering, NASA Headquarters, by February 
28, 1979. The map will conform to the definitions and requirements 
specified in the Floodplain Management Guidelines for Implementing 
Executive Order 11988.
    (b) For any proposed action or critical action, as defined in Sec. 
1216.203(a), using the approved floodplain map, the Field Installation 
Director, while concurrently seeking to avoid the floodplain, shall 
determine if the proposed action will or will not be located in, or may 
indirectly impact or indirectly support development in, the base 
(substitute ``500-year'' for ``base'' in critical action cases) 
floodplain and proceed accordingly:
    (1) If the action or critical action will be located in the base 
floodplain or may indirectly impact or indirectly support floodplain 
development, and is not excepted under Sec. 1216.204(h), field 
installations will adhere to the procedures prescribed in Sec. 
1216.205.
    (2) If such action or critical action will not be located in the 
base floodplain, or is the type of action that will

[[Page 158]]

clearly nor indirectly impact or indirectly support floodplain 
development, the action may be implemented without further review or 
coordination, provided all other applicable NASA requirements and 
policies have been met.
    (c) Any request for new authorizations or appropriations transmitted 
to the Office of Management and Budget shall indicate, on a case-by-case 
basis, if the action proposed will be located in a floodplain and 
whether the proposed action is in accordance with Executive Orders 11988 
and 11990.
    (d) Each field installation shall: Take floodplain management and 
wetlands protection into account when formulating its water and land use 
plans--and when evaluating like plans of others--as an integral part of 
its facilities master planning activities; Restrict the use of land and 
water resources appropriate to the degree of flood hazard involved; and, 
Incorporate recommended Federal and State actions for the continuing 
unified program for planning and action at all levels of government to 
reduce the risk of flood losses in accordance with the Unified National 
Program for Flood Plain Management (U.S. Water Resources Council, 1978).
    (1) Descriptive documentation supporting these planning matters 
shall be included in the ``land use'' section of each field 
installation's facilities master plan, as prescribed in NASA Management 
Instruction 7232.1, Master Planning of NASA Facilities. The evaluation 
and quantification of flood hazards should be expressed in terms of:
    (i) Potential for monetary loss;
    (ii) Human safety, health, and welfare;
    (iii) Shifting of costs, damage or other adverse impacts to off-site 
properties; and,
    (iv) Potential for affecting the natural and beneficial floodplain 
values.
    (2) NASA shall provide appropriate guidance to applicants for 
facilities use permits and grants to enable them to similarly evaluate, 
in accordance with the Orders, the effects of their proposals in 
floodplains and wetlands. This evaluation will be a precondition of any 
NASA approval of such permit or grant involving floodplains or wetlands.
    (e) Facilities to be located in floodplains will be constructed in 
accordance with the standards and criteria promulgated under the 
National Flood Insurance Program (NFIP). Deviations are allowed only to 
the extent that these standards are inappropriate for NASA operations, 
research and test activities. Because construction of NASA facilities 
will rarely be necessary in floodplains and wetlands, expertise in the 
latest flood proofing measures, standards and criteria will not be 
normally maintained within the NASA staff. To assure full compliance 
with the NFIP regulations, and that the Order's key requirement to 
minimize harm to or within the floodplain or wetlands is met, field 
installations will:
    (1) Consult with the appropriate local office of the Corps of 
Engineers or Federal Emergency Management Agency and/or U.S. Fish and 
Wildlife Service, as applicable, on a regular basis throughout the 
facility design or action planning phase. Documentation of this 
consultation will be recorded in the Field Installation's project file.
    (2) Submit evidence of the successful completion of this 
consultation to the Assistant Associate Administrator for Facilities 
Engineering, NASA Headquarters, prior to the start of project 
construction.
    (f) If NASA property used or visited by the general public is 
located in an identified flood hazard area, the Installation shall 
provide on structures, in this area and other places where appropriate 
(such as where roads enter the flood hazard area), conspicuous 
delineation of the 100-year and 500-year flood levels, flood of record, 
and probable flood height in order to enhance public awareness of flood 
hazards. In addition, Field Installations shall review their storm 
control and disaster plans to assure that adequate provision is made to 
warn and evacuate the general public as well as employees. These plans 
will include the integration of adequate warning time into such plans. 
The results of this review shall be submitted to the Assistant Associate 
Administrator for Facilities Engineering, NASA Headquarters, by February 
28, 1979.

[[Page 159]]

    (g) When property in floodplains is proposed for lease, permit, out-
grant, easement, right-of-way, or disposal to non-Federal public or 
private parties, the field installation shall:
    (1) Reference in the conveyance document (prepared by the General 
Services Administration in disposal actions) those uses that are 
restricted under identified Federal, State, and local floodplain 
regulations, such as State coastal management plans.
    (2) Except where prohibited by law, attach other appropriate 
restrictions, equal to the Order's in scope and strictness, to the uses 
of properties by the grantee or purchaser and any successors which 
assure that:
    (i) Harm to lives, property and floodplain values are identified; 
and
    (ii) Such harm is minimized and floodplain values are restored and 
preserved.
    (3) Withhold such properties from conveyance if the requirements of 
paragraphs (g)(1) and (2) of this section cannot be met.
    (h) The NASA Administrator has determined that certain types of 
actions taken in coastal floodplains and wetlands typically do not 
possess the potential to result in long- or short-term adverse impacts 
associated with the occupancy or modification of floodplains, or result 
in direct or indirect support of floodplain development. Nevertheless, 
in undertaking these actions, any opportunities to minimize, restore, 
and preserve floodplain and wetlands values must be considered and 
implemented. With this understanding, for the following types of 
actions, Directors of Field Installations in coastal locations may 
determine that undertaking such actions does not warrant full 
application of the procedures prescribed in Sec. 1216.205.
    (1) Hazard mitigation actions taken by a field installation on an 
emergency basis to reduce and control hazards associated with 
established NASA test or operations activities in accordance with the 
field installation's approved Safety Plan. Any such action must be 
approved in writing by the Field Installation's Safety Officer, and the 
approval document retained in the Safety Office files.
    (2) Repair, maintenance or modification to existing roadways, 
bridges and utility systems in coastal floodplains or wetlands which 
provide long-term support for major NASA operations and test facilities 
(usually located out of the base floodplain), provided such repair, 
maintenance or modification activities are of a routine or emergency 
nature for which the ``no action'' alternative is not practicable; and 
it is ostensibly evident that:
    (i) The proposed action would not impact the floodplain or wetlands.
    (ii) The only alternative would be to construct new duplicate 
facilities near the same site with attendant impacts on the floodplain 
or wetlands area.
    (3) Rehabilitation and modification of existing minor technical 
facilities (such as camera pads, weather towers, repeater buildings), 
including the repair of such damaged facilities to a condition closely 
matching the original construction, provided it can be readily 
determined by Directors of Field Installations that there is no 
practicable alternative but to continue the activity in its current 
coastal floodplain site. In such cases, the sitings of such facilities 
must be rigidly constrained by nationally recognized master planning 
criteria, such as ``line-of-sight, quantity-distance, and acoustic 
sound-pressure-level'' factors. In addition, certification of these 
determinations by Directors of Field Installations will be retained in 
the project file.

[44 FR 1089, Jan. 4, 1979, as amended at 56 FR 50506, Oct. 7, 1991]



Sec. 1216.205  Procedures for evaluating NASA actions impacting floodplains and wetlands.

    (a) Before taking any action a determination shall first be made 
whether the proposed action will occur in or may adversely affect a 
floodplain or wetlands, using the method prescribed in Sec. 
1216.204(b).
    (b) These procedures apply only to evaluations of those proposed 
actions which are to be located in or may adversely impact floodplains. 
These evaluations shall be made at the earliest practicable stage of 
advance planning, such as during facilities master plan

[[Page 160]]

development or when preparing preliminary engineering reports. These 
evaluations shall include analyses of harm to lives and property, the 
natural and beneficial values of floodplains and wetlands, and the 
cumulative impacts of multiple actions over the long term.
    (1) Early public notice is the next step in the evaluation process 
and will normally be accomplished using only the appropriate Single 
State Point of Contact and coordinating with that party pursuant to 
Executive Order (E.O.) 12372, as amended, ``Intergovernmental Review of 
Federal Programs,'' as appropriate. If, however, actions involving land 
acquisition or a major change in land or water use is proposed, the 
overall public audience will be as broad as reasonably possible 
including, but not limited to, adjacent property owners and residents, 
near-by floodplain residents and local elected officials. To assure 
their continuous interaction and involvement, the Field Installation 
will issue public notices and newsletters, and hold public hearing and/
or work shops on a formalized scheduled basis to provide the opportunity 
for public input and understanding of the proposed action. Regardless of 
the scope of action proposed, initially a notice will be provided to the 
appropriate State Single Point of Contact pursuant to E.O. 12372 that 
will not exceed three pages and will include:
    (i) A location map of the proposed action.
    (ii) The reasons why the action is proposed to be located in a 
floodplain.
    (iii) A statement indicating whether the action conforms to 
applicable state and local floodplain protection standards.
    (iv) A list of any NASA identified alternatives to be considered.
    (v) A statement explaining the timing of public notice review 
actions to provide opportunities for the public to provide meaningful 
input.
    (2) Working with the appropriate State Single Point of Contact 
pursuant to E.O. 12372 and, if applicable, other public groups and 
officials, to identify practicable alternatives in addition to those 
already identified by NASA. The alternatives will include:
    (i) Carrying out the proposed action at a location outside the base 
floodplain (alternative sites).
    (ii) Other means which accomplish the same purpose as the proposed 
action (alternative actions).
    (iii) Taking no action, if the resulting hazards and/or harm to or 
within the floodplain overbalances the benefits to be provided by the 
proposed action.
    (3) The costs and impacts of all practicable alternatives must now 
be fully determined to properly assess the practicability of avoiding 
the base floodplain, or of minimizing harm to the floodplain if 
alternatives directly or indirectly support floodplain development or 
have other adverse impacts.
    (i) The basic criteria to be used in determining the impacts of the 
various alternatives appear in the Floodplain Management Guidelines for 
Implementing Executive Order 11988 (43 FR 6030). These criteria discuss 
in detail the three basic types of impacts which are to be addressed:
    (A) Positive and negative impacts (beneficial and harmful);
    (B) Concentrated and dispersed impacts (impacts on-site, near-site, 
and remote from the installation); and
    (C) Short and long-term impacts (include temporary changes and those 
that take the form of delayed changes resulting from the cumulative 
effects of many individual actions).
    (ii) Also to be determined is the nature of resulting hazards and 
risk to lives and property; and the restoration and preservation of 
natural and beneficial floodplain and wetlands values.
    (iii) In determining the type, magnitude, costs, timing factors, 
etc., of the impacts, it is emphasized that subjective assessments have 
little value. To qualify for inclusion in the evaluation process, an 
impact must be fully described and quantified in a measurable way 
compatible with good scientific or engineering practice. Briefly stated, 
an impact is effected by or based on, and limited to, a quantified 
alteration of existing coastal or riverine systems including:
    (A) Anticipated flood levels, sheet flow, coursing and velocity of 
flood caused surface water;
    (B) Ground water flows and recharge;

[[Page 161]]

    (C) Tidal flows;
    (D) Topography; and,
    (E) Ecology, including water quality, vegetation and the terrestrial 
and aquatic habitats.
    (4) For the proposed action and those alternatives which will impact 
the floodplain or wetlands, additional analysis must be undertaken to 
minimize, restore and preserve the natural and beneficial floodplain or 
wetlands values. Because NASA does not retain expertise in these areas 
of floodplain management, field installations will consult, on a case-
by-case basis, with the appropriate local office of the U.S. Fish and 
Wildlife Service to assure that, for each of the above alternatives, 
methods are prescribed which will:
    (i) Minimize harm to lives and property from flood hazards;
    (ii) Minimize harm to natural and beneficial values of floodplains 
and wetlands; and
    (iii) Restore floodplains or wetlands values, if applicable, to the 
proposed action.
    (5) The proposed action and alternatives shall now be comparatively 
evaluated taking into account the identified impacts, the steps 
necessary to minimize these impacts and opportunities to restore and 
preserve floodplain and wetlands values. The comparison will emphasize 
floodplain values.
    (i) If this evaluation indicates that the proposed action in the 
base floodplain is still practicable, consider limiting the action so 
that a non-floodplain site could be more practicable.
    (ii) If the proposed action is outside the floodplain but has 
adverse impacts or supports floodplain development, consider modifying 
or relocating the action to eliminate or reduce these effects or even 
taking no action.
    (6) If, upon completing the comparative evaluation, the Field 
Installation Director determines that the only practicable alternative 
is locating in the base floodplain, a statement of fundings and public 
explanation must be provided to all those who have received the early 
public notice, and specifically to the appropriate State Single Point of 
Contact pursuant to E.O. 12372, and will include as a minimum:
    (i) The reasons why the proposed action must be located in the 
floodplain.
    (ii) A statement of all significant facts considered in making the 
determination including alternative sites and actions.
    (iii) A statement indicating whether the actions conform to 
applicable State and local floodplain protection standards.
    (iv) In cases where land acquisition or major changes in land use 
are involved, it may also be appropriate to include:
    (A) A provision for publication in the Federal Register or other 
appropriate vehicle.
    (B) A description of how the activity will be designed or modified 
to minimize harm to or within the floodplain.
    (C) A statement indicating how the action affects natural or 
beneficial floodplain or wetlands values.
    (D) A statement listing other involved agencies and individuals.
    (7) After a reasonable period (15 to 30 days) to allow for public 
response, the proposed action may proceed through the normal NASA 
approval process, or if disposal is anticipated, the action can be 
implemented in accordance with Federal Property Management Regulations 
real property disposal procedures. If, however, significant new 
information is revealed in comments by the public, the field 
installation shall re-evaluate the proposed action in accordance with 
the provisions of paragraph (b)(5) of this section.
    (8) For major NASA actions significantly affecting the quality of 
the human environment, the evaluations required above will be included 
in any statement prepared under Section 102(2)(C) of the National 
Environmental Policy Act.
    (9) In accordance with Sec. 1216.202(b), the Assistant Associate 
Administrator for Facilities Engineering, NASA Headquarters, will 
conduct periodic on-site reviews to assure that the action is carried 
out in accordance with the stated findings and plans for the proposed 
action, in compliance with the Executive orders.

[44 FR 1089, Jan. 4, 1979, as amended at 56 FR 50506, Oct. 7, 1991]

[[Page 162]]



 Subpart 1216.3--Procedures for Implementing the National Environmental 
                            Policy Act (NEPA)

    Authority: The National Aeronautics and Space Act of 1958, as 
amended (42 U.S.C. 2451 et seq.); the National Environmental Policy Act 
of 1969 (NEPA), as amended (42 U.S.C. 4321 et seq.); the Environmental 
Quality Improvement Act of 1970, as amended (42 U.S.C. 4371 et seq.); 
sec. 309 the Clean Air Act, as amended (42 U.S.C. 7609); E.O. 11514 
(Mar. 5, 1970, as amended by E.O. 11991, May 24, 1977); the Council on 
Environmental Quality NEPA Regulations (40 CFR part 1500-1508); and E.O. 
12114, Jan. 4, 1979 (44 FR 1957).

    Source: 44 FR 44485, July 30, 1979, unless otherwise noted.



Sec. 1216.300  Scope.

    This subpart sets forth NASA procedures implementing the provisions 
of section 102(2) of the National Environmental Policy Act (NEPA). The 
NASA procedures of this subpart supplement the regulations of the 
Council on Environmental Quality (43 FR 55978) which establish uniform 
procedures for implementing those provisions of NEPA.



Sec. 1216.301  Applicability.

    (a) This subpart is applicable to NASA Headquarters and field 
installations.
    (b) The procedures established by this subpart apply to all NASA 
actions which may have an impact on the quality of the environment. 
These actions may fall within any of the four NASA budget categories: 
Research and Development (R&D), Construction of Facilities (CoF), 
Research and Program Management (R&PM), and Space Flight Control and 
Data Communications (SFCDC), or, if not involving budget authority or 
other congressional approval, may be separate from the categories.

[44 FR 44485, July 30, 1979, as amended at 53 FR 9760, Mar. 25, 1988]



Sec. 1216.302  Definition of key terms.

    The definitions contained within part 1508, Terminology and Index, 
CEQ Regulations, 43 FR 55978, apply to subpart 1216.3. Additional 
definitions, necessary for the purpose of this subpart, are as follows:
    (a) Budget line items. The individual items in the annual NASA 
authorization legislation which are used here to classify the range of 
NASA actions. The four main budget line items are:
    (1) Research and Development (R&D). Those activities directed 
towards attaining the objectives of a specific mission, project, or 
program. All NASA's aeronautics and space program elements are 
categorized within the R&D program categories. R&D funds are expended 
chiefly for contracted research and development and for research grants. 
Some R&D funds are also expended in support of in-house research (e.g., 
equipment purchases and other research support, but not civil service 
salaries).
    (2) Research and Program Management (R&PM). Those activities 
directed towards the general support of the NASA institution charged 
with the conduct of the aeronautics and space program. R&PM funds are 
expended for the NASA civil service work force (both for performing in-
house R&D and for planning, managing, and supporting contractor and 
grantee R&D), and for other general supporting functions.
    (3) Construction of Facilities (C of F). Those activities directed 
towards construction of new facilities; repair, rehabilitation, and 
modification of existing facilities; acquisition of related facility 
equipment; design of facilities projects; and advance planning related 
to future facilities needs.
    (4) Space Flight, Control and Data Communications (SFCDC). Has 
similar scope to R&D but covers activities which are primarily of a 
production and operational nature related to space flight. The content 
includes the national fleet of Space Shuttle orbiters, including main 
engines, launch site and mission operations, initial spares, production 
tooling and supporting activities, launch operations and tracking and 
data acquisition.
    (b) Construction of facilities project. The consolidation of 
applicable specific individual types of facility work, including related 
collateral equipment, which is required to fully reflect all of the 
needs, generally relating to one facility, which have been or may be 
generated by the same set of events or circumstances which are required 
to be

[[Page 163]]

accomplished at one time in order to provide for the planned initial 
operational use of the facility or a discrete portion thereof. Facility 
projects are subject to the NASA decision processes of Sec. 1216.304.
    (c) Environmental analysis. The analysis of the environmental 
effects of proposed actions, including alternative proposals. The 
analyses are carried out from the very earliest of planning studies for 
the action in question, and are the materials from which the more formal 
environmental assessments, environmental impact statements, and public 
record of decisions are made.
    (d) Institutional action. An action to establish, change, or 
terminate an aspect of the NASA institution, defined as the total NASA 
resource (plant, employees, skills).
    (e) R&D project. A discrete research and development activity, with 
a scheduled beginning and ending, which normally involves one of the 
following primary purposes:
    (1) The design, development, and demonstration of major advanced 
technology hardware items;
    (2) The design, construction, and operation of a new launch vehicle 
(and associated ground support) during its research and development 
phase; and
    (3) The construction and operation of one or more aeronautics or 
space vehicles (and necessary ground support) in order to accomplish a 
scientific or technical objective. R&D projects are each subelements in 
the NASA R&D budget line item. R&D projects are subject to the decision 
processes of Sec. 1216.304.
    (f) SFCDC project. R&D type projects authorized under the SFCDC 
budget line item.

[44 FR 44485, July 30, 1979, as amended at 53 FR 9761, Mar. 25, 1988]



Sec. 1216.303  Responsibilities of NASA officials.

    (a) The Associate Administrator for Management or designee, who is 
responsible for developing the procedures of this subpart and for 
ensuring that environmental factors are properly considered in all NASA 
planning and decisionmaking, shall:
    (1) Monitor these processes to ensure that the agency procedures are 
achieving their purposes;
    (2) Advise line management and inform NASA employees of technical 
and management requirements of environmental analysis, of appropriate 
expertise available in and out of NASA, and--with the assistance of the 
NASA General Counsel--of relevant legal developments; and
    (3) Consolidate and transmit to the appropriate parties NASA 
comments on environmental impact statements and other environmental 
reports prepared by other agencies.
    (b) Officials-in-Charge of Headquarters Offices (hereafter termed 
``Headquarters officials'') are responsible for implementing the 
procedures established by these regulations for the consideration and 
documentation of the environmental aspects of the decision processes in 
their respective areas of responsibility.
    (c) The Assistant Administrator for Legislative Affairs is 
responsible for ensuring that the legislative environmental impact 
statements accompany NASA recommendations or reports on proposals for 
legislation submitted to Congress. The Associate Administrator for 
Management, the Chief Financial Officer (CFO)/Comptroller and the 
General Counsel will provide guidance as required.

[44 FR 44485, July 30, 1979, as amended at 53 FR 9761, Mar. 25, 1988; 56 
FR 50507, Oct. 7, 1991]

                            Agency Procedures



Sec. 1216.304  Major decision points.

    The possible environmental effects of a proposed action must be 
considered, along with technical, economic, and other factors, in the 
earliest planning. At that stage, the responsible Headquarters official 
shall begin the necessary steps to comply with all the requirements of 
section 102(2) of the National Environmental Policy Act of 1969. Major 
NASA activities, particularly R&D (or SFCDC) and facility projects, 
generally have four distinct phases: The conceptual study phase; the 
detailed planning/definition phase; the development/construction phase; 
and the operation phase. (Other NASA

[[Page 164]]

activities have fewer, less well-defined phases, but can still be 
characterized by phases representing general or feasibility study, 
detailed planning or definition, and implementation.) Environmental 
documentation shall be linked to major decision points as follows:
    (a) Completion of an environmental assessment and the determination 
as to whether an environmental impact statement is required must be made 
prior to the decision to proceed from the conceptual study phase to the 
detailed planning/definition phase of the proposed action. For example, 
this determination must be concurrent with:
    (1) Proposal of an R&D (or SFCDC) project for detailed planning and 
project definition;
    (2) Proposal of a major Construction of Facilities project for 
detailed planning and project definition;
    (3) Proposal of an institutional action (other than a facility 
project) for detailed planning and definition; and
    (4) Proposal of a plan to define changes in an approved project.
    (b) The final environmental impact statement (EIS) should be 
completed and circulated prior to the decision to proceed from the 
detailed planning/definition phase to the development/construction (or 
implementation) phase of the proposed action. For example, the EIS 
should be completed by, and incorporated with:
    (1) Proposal of an R&D (or SFCDC) project for development/
construction;
    (2) Proposal of a major Construction of Facilities project for 
development/construction;
    (3) Proposal to undertake a significant institutional action (other 
than a facility project); and
    (4) Proposal to implement a program change.

[44 FR 44485, July 30, 1979, as amended at 53 FR 9761, Mar. 25, 1988]



Sec. 1216.305  Criteria for actions requiring environmental assessments.

    (a) Whether a proposed NASA action within the meaning of the CEQ 
Regulations (43 FR 55978) requires the preparation of an environmental 
assessment, an environmental impact statement, both, or neither, will 
depend upon the scope of the action and the context and intensity of any 
environmental effects expected to result. A NASA action shall require 
the preparation of an environmental assessment (Sec. Sec. 1501.3 and 
1508.9 of the CEQ Regulations) provided the action is not one normally 
requiring an environmental impact statement (paragraph (c)) or it is not 
categorically excluded from the requirement for an environmental 
assessment and an environmental impact statement (paragraph (d)).
    (b) Specific NASA actions normally requiring an environmental 
assessment are:
    (1) Specific spacecraft development and flight projects in space 
science.
    (2) Specific spacecraft development and flight projects in space and 
terrestrial applications.
    (3) Specific experimental projects in aeronautics and space 
technology and energy technology applications.
    (4) Development and operation of new space transportation systems 
and advanced development of new space transportation and spacecraft 
systems.
    (5) Reimbursable launches of non-NASA spacecraft or payloads.
    (6) Major Construction of Facilities projects.
    (7) Actions to alter ongoing operations at a NASA installation which 
could lead, either directly or indirectly, to natural or physical 
environmental effects.
    (c) NASA actions expected to have a significant effect upon the 
quality of the human environment shall require an environmental impact 
statement. For these actions an environmental assessment is not 
required. Criteria to be used in determining significance are given in 
Sec. 1508.27 of the CEQ Regulations (43 FR 55978). Specific NASA 
actions requiring environmental impact statements, all in the R&D budget 
category, are as follows:
    (1) Development and operation of new launch vehicles.
    (2) Development and operation of space vehicles likely to release 
substantial amounts of foreign materials into the earth's atmosphere, or 
into space.
    (3) Development and operation of nuclear systems, including reactors 
and thermal devices used for propulsion and/or power generation. 
Excluded are devices with millicurie quantities or

[[Page 165]]

less of radioactive materials used as instrument detectors and small 
radioisotope heaters used for local thermal control, provided they are 
properly contained and shielded.
    (d) NASA actions categorically excluded from the requirements to 
prepare either an environmental assessment or an EIS (Sec. 1508.4 of 
the CEQ Regulations) fit the following criteria: They are each sub-
elements of an approved broadbased level-of-effort NASA science and 
technology program (basic research, applied research, development of 
technology, ongoing mission operations), facility program, or 
institutional program; and they are each managed relatively 
independently of other related sub-elements by means of separate task 
orders, Research and Technology Operating Plans, etc. Specific NASA 
actions fitting these criteria and thus categorically excluded from the 
requirements for environmental assessments and environmental impact 
statements are:
    (1) R&D (or SFCDC) activities in space science (e.g., Physics and 
Astronomy Research and Analysis, Planetary Exploration Mission 
Operations and Data Analysis) other than specific spacecraft development 
and flight projects.
    (2) R&D activities in space and terrestrial applications (e.g., 
Resource Observations Applied Research and Data Analysis, Technology 
Utilization) other than specific spacecraft development and flight 
projects.
    (3) R&D activities in aeronautics and space technology and energy 
technology applications (e.g., Research and Technology Base, Systems 
Technology Programs) other than experimental projects.
    (4) R&D (or SFCDC) activities in space transportation systems 
engineering and scientific and technical support operations, routine 
transportation operations, and advanced studies.
    (5) R&D (or SFCDC) activities in space tracking and data systems.
    (6) Facility planning and design (funding).
    (7) Minor construction of new facilities including rehabilitation, 
modification, and repair.
    (8) Continuing operations of a NASA installation at a level of 
effort, or altered operations, provided the alterations induce only 
social and/or economic effects but no natural or physical environmental 
effects.
    (e) Even though an action may be categorically excluded from the 
need for a formal environmental assessment or environmental impact 
statement, it is not excluded from the requirement for an environmental 
analysis conducted during the earliest planning phases. If that analysis 
shows that the action deviates from the criteria for exclusion and it is 
concluded that there may be significant environmental effects, an 
environmental assessment must be carried out. Based upon that 
assessment, a determination must then be made whether or not to prepare 
an environmental impact statement.

[44 FR 44485, July 30, 1979, as amended at 53 FR 9761, Mar. 25, 1988]



Sec. 1216.306  Preparation of environmental assessments.

    (a) For each NASA action meeting the criteria of 14 CFR 1216.305(b) 
and for other actions as required, the responsible Headquarters official 
shall prepare an environmental assessment (40 CFR 1501.3 and 1508.9 of 
the CEQ Regulations) and, on the basis of that assessment, determine if 
an EIS is required; except where action meeting the criteria is strictly 
of a local nature under the purview of the Field Installation Director.
    (b) If the determination is that no environmental impact statement 
is required, the Headquarters official or Field Installation Director, 
shall, in coordination with the Associate Administrator for Management, 
prepare a ``Finding of No Significant Impact.'' (See 40 CFR 1508.13 of 
the CEQ Regulations.) The ``Finding of No Significant Impact'' shall be 
made available to the affected public through direct distribution and 
publication in the Federal Register, or coordinated with the State 
Single Point of Contact pursuant to E.O. 12372, as amended, 
``Intergovernmental Review of Federal Programs,'' as appropriate.
    (c) If the determination is that an environmental impact statement 
is required, the Headquarters official shall proceed with the ``notice 
of intent to prepare an EIS'' (see 40 CFR 1508.22 of

[[Page 166]]

the CEQ Regulations). The Headquarters official shall transmit this 
notice to the Associate Administrator for Management for review and 
subsequent publication in the Federal Register (see 40 CFR 1507.3(e) of 
the CEQ Regulations). The Headquarters official shall then apply 
procedures set forth in 14 CFR 1216.307 to determine the scope of the 
EIS and proceed to prepare and release the environmental statement in 
accordance with the CEQ Regulations and the procedures of this subpart.
    (d) Environmental assessments may be prepared for any actions, even 
those which meet the criteria for environmental impact statements (Sec. 
1216.305(c)) or for categorical exclusion (Sec. 1216.305(d)), if the 
responsible Headquarters official believes that the action may be an 
exception or that an assessment will assist in planning or 
decisionmaking.

[44 FR 44485, July 30, 1979, as amended at 53 FR 9761, Mar. 25, 1988]



Sec. 1216.307  Scoping.

    The responsible Headquarters official shall conduct an early and 
open process for determining the scope of issues to be addressed in 
environmental impact statements and for identifying the significant 
issues related to a proposed action. The elements of the scoping process 
are defined in Sec. 1501.7 of the CEQ Regulations and the process must 
include considerations of the range of actions, alternatives, and 
impacts discussed in Sec. 1508.25 of the CEQ Regulations. The range of 
environmental categories to be considered in the scoping process shall 
include, but not be limited to:
    (a) Air quality;
    (b) Water quality;
    (c) Waste generation, treatment, transportation disposal and 
storage;
    (d) Noise, sonic boom, and vibration;
    (e) Toxic substances;
    (f) Biotic resources;
    (g) Radioactive materials and non-ionizing radiation;
    (h) Endangered species;
    (i) Historical, archeological, and recreational factors;
    (j) Wetlands and floodplains; and
    (k) Economic, population and employment factors, provided they are 
interrelated with natural or physical environmental factors.



Sec. 1216.308  Preparation of draft statements.

    (a) The responsible Headquarters official shall prepare the draft 
environmental impact statement in the manner provided in 40 CFR part 
1502 of the CEQ Regulations and shall submit the draft statement and any 
attachments to the Associate Administrator for Management for NASA 
review prior to any formal review outside NASA. This submission shall be 
accompanied by a list of Federal, State, and local officials (40 CFR 
part 1503 of the CEQ Regulations) and a list of other interested parties 
(40 CFR 1506.6 of the CEQ Regulations) from whom comments should be 
requested.
    (b) After the NASA review is completed, the Associate Administrator 
for Management shall submit the approved draft statement to the 
Environmental Protection Agency (EPA), Office of Federal Activities, and 
shall seek the views of appropriate agencies and individuals in 
accordance with 40 CFR part 1503 and Sec. 1506.6 of the CEQ 
Regulations.
    (c) Comments received shall be provided to the originating official 
for consideration in preparing the final statement. To the extent 
possible, requirements for review and consultation with other agencies 
on environmental matters established by statutes other than NEPA, such 
as the review and consultation requirements of the Endangered Species 
Act of 1973, as amended, should be met prior to or through this review 
process (Sec. 1216.320).

[44 FR 44485, July 30, 1979, as amended at 53 FR 9761, Mar. 25, 1988]



Sec. 1216.309  Public involvement.

    (a) Interested persons can get information on NASA environmental 
impact statements and other aspects of NASA's NEPA process by contacting 
the Assistant Associate Administrator for Facilities Engineering, Code 
NX, NASA Headquarters, Washington, DC 20546, 202-453-1965. Pertinent 
information regarding any aspect of the NEPA process may also be mailed 
to the above address.

[[Page 167]]

    (b) Responsible Headquarters officials and NASA Field Installation 
Directors shall identify those persons, community organizations, and 
environmental interest groups who may be interested or affected by the 
proposed NASA action and who should be involved in the NEPA process. 
They shall submit a list of such persons and organizations to the 
Associate Administrator for Management at the same time they submit:
    (1) A recommendation regarding a ``Finding of No Significant 
Impact,''
    (2) A ``Notice of Intent to Prepare an EIS,''
    (3) A recommendation for public hearings,
    (4) A preliminary draft EIS,
    (5) A preliminary final EIS,
    (6) Other preliminary environmental documents (14 CFR 1216.321(d)).
    (c) The Associate Administrator for Management may modify such lists 
referred to in paragraph (b) of this section as appropriate to ensure 
that NASA shall comply, to the fullest extent practicable, with 40 CFR 
1506.6 of the CEQ Regulations and section 2-4(d) of Executive Order 
12114.
    (d) The decision whether to hold public hearings shall be made by 
the Associate Administrator for Management in consultation with the 
General Counsel.

[53 FR 9762, Mar. 25, 1988, as amended at 56 FR 50507, Oct. 7, 1991]



Sec. 1216.310  Preparation of final statements.

    (a) After conclusion of the review process with other Federal, 
State, and local agencies and the public, the responsible Headquarters 
official shall consider all suggestions, revise the statement as 
appropriate, and forward the proposed final statement to the Associate 
Administrator for Management. The Associate Administrator for Management 
shall submit the approved final statement to the EPA Office of Federal 
Activities, to all parties who commented, and to other interested 
parties in accordance with CEQ Regulations.
    (b) Each draft and final statement, the supporting documentation, 
and the record of decision shall be available for public review and 
copying at the office of the responsible Headquarters official, or at 
the office of a suitable designee. Copies of draft and final environment 
impact statements shall also be available at the NASA Information 
Center, 600 Independence Avenue, SW., Washington, DC 20546; at 
information centers at appropriate NASA field installations; and at 
appropriate state and local clearinghouses.

[44 FR 44485, July 30, 1979, as amended at 53 FR 9762, Mar. 25, 1988]



Sec. 1216.311  Record of the decision.

    At the time of the decision on the proposed action, the originating 
Headquarters official shall consult with the Associate Administrator for 
Management and prepare a concise public record of the decision. (See 40 
CFR 1505.2 of the CEQ Regulations.)

[53 FR 9762, Mar. 25, 1988]



Sec. 1216.312  Timing.

    (a) Environmental impact statements are drafted when the 
Headquarters official has determined that the statement shall be 
prepared. No decision to proceed to the development/construction (or 
implementation) phase of the proposed action (the major decision point 
of Sec. 1216.304(b)) shall be made by NASA until the later of the 
following dates (Sec. 1506.10 of the CEQ Regulations);
    (1) Ninety days after publication of an EPA notice of a NASA draft 
EIS.
    (2) Thirty days after publication of an EPA notice of a NASA final 
EIS.
    (b) When necessary to comply with other specific statutory 
requirements, NASA shall consult with and obtain from EPA time periods 
other than those specified by the Council for timing of agency action.



Sec. 1216.313  Implementing and monitoring the decision.

    (a) Section 1505.3 of the CEQ Regulations provides for agency 
monitoring to assure that mitigation measures and other commitments 
associated with the decision and its implementation and described in the 
EIS are carried out and have the intended effects.
    (b) The responsible Headquarters official shall, as necessary, 
conduct the required monitoring and shall provide

[[Page 168]]

periodic reports as required by the Associate Administrator for 
Management.
    (c) If the monitoring activity indicates that resulting 
environmental effects differ from those described in the current 
documents, the Headquarters official shall reassess the environmental 
impact and consult with the Associate Administrator for Management to 
determine the need for additional mitigation measures and whether to 
prepare a supplement to the EIS (see 40 CFR 1502.9 of the CEQ 
Regulations).

[44 FR 44485, July 30, 1979, as amended at 53 FR 9762, Mar. 25, 1988]



Sec. 1216.314  Tiering.

    Actions which are the subject of an environmental impact statement 
and which represents projects of broad scope may contain within them 
component actions of narrower scope, perhaps restricted to individual 
sites of activity or sequential stages of a mission, and which 
themselves may require environmental assessments and, where necessary, 
environmental impact statements. The CEQ Regulations provide that 
agencies may use ``Tiering'' (Sec. 1508.28 of the CEQ Regulations) of 
environmental impact statements to relate such broad and narrow actions. 
When employing tiering, Headquarters officials shall, by reference, make 
maximum use of environmental documentation already available, and avoid 
repetition.



Sec. 1216.315  Processing legislative environmental impact statements.

    (a) Preparation of a legislative environmental impact statement 
shall conform to the requirements of 40 CFR 1506.8 of the CEQ 
Regulations. The responsible Headquarters official, in coordination with 
the Associate Administrator for Management, shall identify those NASA 
recommendations or reports on legislation that would require preparation 
of environmental impact statements in accordance with criteria set forth 
in 14 CFR 1216.305.
    (b) For the purposes of this provision, ``legislation'' not only 
excludes requests for appropriations (40 CFR 1508.17 of the CEQ 
Regulations), but also excludes the annual authorization bill submitted 
to the Congress.

[53 FR 9762, Mar. 25, 1988]



Sec. 1216.316  Cooperating with other agencies and individuals.

    (a) The Associate Administrator for Management, in coordination with 
the Associate Administrator for External Relations, shall ensure that 
NASA officials have an opportunity to cooperate with other agencies and 
individuals. He/she shall keep abreast of the activities of Federal, 
state, and local agencies, particularly activities in which NASA has 
expertise or jurisdiction by law (see 40 CFR 1508.15 of the CEQ 
Regulations). He/she shall inform the responsible Headquarters official 
of the need for cooperation as necessary.
    (b) At the request of the Associate Administrator for Management, 
Headquarters officials shall initiate discussions with another Federal 
agency concerning those activities which may be the subject of that 
agency's EIS on which NASA proposes to comment.
    (c) At the request of the Associate Administrator for Management, 
the responsible Headquarters official shall, in the interest of 
eliminating duplication, prepare joint analyses, assessments, and 
statements with state and local agencies. These joint environmental 
documents shall conform with the requirements of these procedures and 
overall NASA policy.
    (d) Because of the uniqueness of the NASA's aerospace activities, it 
is unlikely that NASA will have the opportunity to ``adopt'' 
environmental statements prepared by other agencies (40 CFR 1506.3 of 
the CEQ Regulations). However, should the responsible NASA offical wish 
to adopt a Federal draft or final environmental impact statement or 
portion thereof, he/she shall consult with the Associate Administrator 
for Management to determine whether that statement meets NASA 
requirements.
    (e) From time to time, there may be disagreements between NASA and 
other Federal agencies regarding which agency has primary responsibility 
to prepare an environmental impact statement in which both parties are 
involved. The Headquarters official with primary responsibility for the 
activity

[[Page 169]]

in question shall consult with the Associate Administrator for 
Management to resolve such questions in accordance with 40 CFR 1501.5 of 
the CEQ Regulations.
    (f) Responsibility for the environmental analyses and any necessary 
environmental assessments and environmental impact statements required 
by permits, leases, easements, etc., proposed for issuance to non-
Federal applicants rests with the Headquarters official responsible for 
granting of that permit, lease, easement, etc. The responsible 
Headquarters official shall consult with the Associate Administrator for 
Management for advice on the type of environmental information needed 
from the applicant and on the extent of the applicant's participation in 
the necessary environmental studies and their documentation.

[53 FR 9762, Mar. 25, 1988]



Sec. 1216.317  Classified information.

    Environmental assessments and impact statements which contain 
classified information to be withheld from public release in the 
interest of national security or foreign policy shall be organized so 
that the classified portions are appendices to the environmental 
document itself. The classified portion shall not be made available to 
the public.



Sec. 1216.318  Deviations.

    From time to time there will arise good and valid reasons for a 
deviation from these procedures. These procedures are not intended to be 
a substitute for sound professional judgment. Accordingly, if and as 
problems arise which justify a deviation, the proposed deviation and 
supporting rationale shall be forwarded to the Associate Administrator 
for Management. Unless such documentation is received, it will be 
assumed that each planning and decisionmaking action is in accordance 
with these procedures.

[53 FR 9763, Mar. 25, 1988]

                           Other Requirements



Sec. 1216.319  Environmental resources document.

    Each Field Installation Director shall ensure that there exists an 
environmental resources document which describes the current environment 
at that field installation, including current information on the effects 
of NASA operations on the local environment. This document shall include 
information on the same environmental effects as included in an 
environmental impact statement (see 14 CFR 1216.307). This document 
shall be coordinated with the Associate Administrator for Management and 
shall be published in an appropriate NASA report category for use as a 
reference document in preparing other environmental documents (e.g., 
environmental impact statements for proposed actions to be located at 
the NASA field installation in question). The Director of each NASA 
field installation shall ensure that existing resource documents are 
reviewed and updated, if necessary, by December 31, 1980, and at 
appropriate intervals thereafter.

[53 FR 9763, Mar. 25, 1988]



Sec. 1216.320  Environmental review and consultation requirements.

    (a) Headquarters officials and Field Installation Directors shall, 
to the maximum extent possible, conduct environmental analyses, 
assessments, and any impact statement preparation concurrently with 
environmental reviews required by the laws and regulations listed below:
    (1) Section 106 of the National Historic Preservation Act of 1966 
(16 U.S.C. 470(f)) requires identification of National Register 
properties, eligible properties, or properties which may be eligible for 
the National Register within the area of the potential impact of a NASA 
proposed action. Evaluation of the impact of the NASA action on such 
properties shall be discussed in draft environmental impact statements 
and transmitted to the Advisory Council on Historic Preservation for 
comments.

[[Page 170]]

    (2) Section 7 of the Endangered Species Act (16 U.S.C. 1531 et seq.) 
requires indentification of and consultation on aspects of the NASA 
action that may affect listed species or their habitat. A written 
request for consultation, along with the draft statement, shall be 
conveyed to the Regional Director of the U.S. Fish and Wildlife Service 
or the National Marine Fisheries Service, as appropriate, for the Region 
where the action will be carried out.
    (3) Executive Order 11988 (Floodplains Management) and Executive 
Order 11990 (Wetlands), as amended, and implemented by 14 CFR subpart 
1216.2--Floodplains and Wetlands Management, prescribe procedures to 
avoid adverse impacts associated with the occupancy and modification of 
floodplains and wetlands and require identification and evaluation of 
actions which are proposed for location in or which may affect a 
floodplain or wetland. A comparative evaluation of such actions shall be 
discussed in draft environmental impact statements and transmitted to 
appropriate State Single Point of Contact for comments.
    (b) Other environmental review and consultation requirements 
peculiar to NASA, if any, may be identified in the NASA environmental 
impact implementation handbook.

[44 FR 44485, July 30, 1979, as amended at 53 FR 9763, Mar. 25, 1988]



Sec. 1216.321  Environmental effects abroad of major Federal actions.

    (a) In accordance with these procedures and E.O. 12114, 
``Environmental Effects Abroad of Major Federal Actions'' (44 FR 1957), 
dated January 4, 1979, the Headquarters official shall analyze actions 
under his/her cognizance with due regard for the environmental effects 
abroad of such actions. The Headquarters official shall consider whether 
such actions involve:
    (1) Potential environmental effects on the global commons (i.e., 
oceans and the upper atmosphere);
    (2) Potential environmental effects on a foreign nation not 
participating with or not otherwise involved in the NASA activity;
    (3) The export of products or facilities producing products (or 
emission/effluents) which in the United States are prohibited or 
strictly regulated because their effects on the environment create a 
serious public health risk. The Associate Administrator for Management 
will provide additional guidance regarding the types of chemical, 
physical, and biological agents involved.
    (4) A physical project which, in the U.S., would be prohibited or 
strictly regulated by Federal law to protect the environment against 
radioactive substances;
    (5) Potential environmental effects on natural and ecological 
resources of global importance and which the President in the future may 
designate (or which the Secretary of State designates pursuant to 
international treaty). A list of any such designations will be available 
from the Associate Administrator for Management.
    (b) Prior to decisions (Sec. 1216.304) on any action falling into 
the categories specified in paragraph (a), the Headquarters official 
shall make a determination whether such action may have a significant 
environmental effect abroad.
    (c) If the Headquarters official determines that the action will not 
have a significant environmental effect abroad, he/she shall prepare a 
memorandum for the record which states the reasoning behind such a 
determination. A copy of the memorandum shall be forwarded to the 
Associate Administrator for Management. Note that these procedures do 
not allow for categorical exclusions (E.O. 12114, section 2-5(d)).
    (d) If the Headquarters official determines that an action may have 
a significant environmental effect abroad, he/she shall consult with the 
Associate Administrator for Management and the Director, International 
Relations Division. The Associate Administrator for Management, in 
coordination with the Director, International Relations Division, shall 
(as specified in E.O. 12114) make a determination whether the subject 
action requires:
    (1) An environmental impact statement,
    (2) Bilateral or multilateral environmental studies, or
    (3) Concise reviews of environmental issues.

[[Page 171]]

    (e) When informed of the determination of the Associate 
Administrator for Management, the Headquarters official shall proceed to 
take the necessary actions in accordance with these implementing 
procedures.
    (f) The Associate Administrator for Management shall, in 
coordination with the Associate Administrator for External Relations, 
determine when an affected nation shall be informed regarding the 
availability of documents referred to in paragraph (d) of this section 
and coordinate with the Department of State all NASA communications with 
foreign governments concerning environmental matters as related to E.O. 
12114.

[44 FR 44485, July 30, 1979, as amended at 53 FR 9763, Mar. 25, 1988]



PART 1217--DUTY-FREE ENTRY OF SPACE ARTICLES--Table of Contents




Sec.
1217.100 Scope.
1217.101 Applicability.
1217.102 Background.
1217.103 Authority to certify.
1217.104 Certification forms.
1217.105 Procedures.
1217.106 Articles brought into the United States by NASA from space.

    Authority: Sections 101 and 103 of Pub. L. 103-465, 108 Stat. 4814 
and 4819; Proclamation No. 6780 of March 23, 1995, 60 FR 15845 (March 
27, 1995).

    Source: 62 FR 6467, Feb. 12, 1997, unless otherwise noted.



Sec. 1217.100  Scope.

    This part sets forth policy and procedures with respect to the use 
of the NASA's authority to certify to the U.S. Commissioner of Customs 
duty-free entry of articles into the United States for the use of NASA 
or for implementation of a NASA international program, including 
articles that will be launched into space, spare parts for such 
articles, ground support equipment, or uniquely associated equipment for 
use in connection with a NASA international program or launch service 
agreement. This part also sets forth NASA's procedures with respect to 
the use of its authority to bring foreign-owned articles and articles 
from space into the customs territory of the United States, and 
describes the nonimport status of such articles.



Sec. 1217.101  Applicability.

    This part applies to qualifying articles entered or withdrawn from 
warehouse for consumption in the customs territory of the United States, 
and to articles brought into the customs territory of the United States 
by NASA from space or from foreign country as part of the NASA 
international program.



Sec. 1217.102  Background.

    In order to encourage and facilitate the use of NASA's launch 
services for the exploration and use of space, section 116 of Public Law 
97-446 provided for the duty-free entry into the United States of 
certain articles imported by NASA for its space-related activities or 
articles imported by another person or entity for the purpose of meeting 
its obligations under a launch services agreement with NASA. Such 
articles were certified by NASA to the Commissioner of Customs for duty-
free entry to be launched into space or space parts or necessary and 
uniquely associated support equipment for use in connection with a 
launch into space. This exemption from duty was provided for in 
Subheading 9808.00.80, Harmonized Tariff Schedule of the United States 
(HTSUS) (19 U.S.C. 1202). Also, HTSUS, Chapter VIII, U.S. note 1, 
pursuant to the same law, provided that return of articles by NASA from 
space to the United States would not be considered an importation, and 
similarly not be subject to a duty.
    As a result of the Uruguay Round agreements of the 1994 General 
Agreement on Tariffs and Trade, this authority was revised and expanded 
in scope. It now provides that imports of articles for NASA's use and 
articles imported to implement NASA's international programs, including 
articles to be launched into space, parts thereof, ground support 
equipment, and uniquely associated equipment for use in connection with 
NASA's international programs and launch service agreements would be 
eligible for duty-free customs entry upon certification by NASA to the 
Commissioner of Customs. The revised authorities also provided, in U.S.

[[Page 172]]

note 1 to subchapter VIII of chapter 98 of the HTSUS, that articles 
brought into the customs territory of the United States by NASA from 
space or from a foreign country as part of a NASA's international 
programs would not be considered imports or subject to customs entry 
requirements.



Sec. 1217.103  Authority to certify.

    (a) The following NASA officials, their deputies, and designees 
within their respective organizations are authorized, under the 
conditions described herein, to make the certification to the 
Commissioner of Customs required for the duty-free entry of space 
articles pursuant to subheading HTSUS 9808.00.80.
    (1) The NASA Associate Administrator for Procurement is authorized 
to issue the certification for articles imported into the United States 
which are procured by NASA or by other U.S. Government agencies, or by 
U.S. Government contractors or subcontractors when title to the articles 
is or will be vested in the U.S. Government pursuant to the terms of the 
contract or subcontract. Requests for certification should be sent to: 
Office of Procurement, Attn: HK/Director, Contract Management Division, 
National Aeronautics and Space Administration, Washington, DC 20546.
    (2) The NASA Associate Administrator for External Relations is 
authorized to issue the certification for articles imported into the 
United States pursuant to international agreements. Requests for 
certification should be sent to: Office of External Relations, Attn: ID/
Manager, International Technology Transfer Policy, National Aeronautics 
and Space Administration, Washington, DC 20546.
    (3) The NASA Associate Administrator for Space Flight is authorized 
to issue the certification for articles imported into the United States 
by persons or entities under agreements other than those identified in 
paragraphs (a)(1) and (a)(2) of this section, including launch services 
agreements. Requests for certification should be sent to: Office of 
Space Flight, Attn: M/Director, Space Operations Utilization, National 
Aeronautics and Space Administration, Washington, DC 20546.
    (b) Each certification by the officials identified in paragraphs 
(a)(1), (a)(2), and (a)(3) of this section shall receive the concurrence 
of the Office of the General Counsel.
    (c) Subject to procedures established by the officials identified in 
paragraphs (a)(1), (a)(2), or (a)(3) of this section, as appropriate, 
the Center Procurement Officer or a Program Manager at a NASA 
Installation who is designated by an official identified in paragraphs 
(a)(1), (a)(2), or (a)(3) of this section may make the certification to 
the Commissioner of Customs required for the duty-free entry of space 
articles pursuant to subheading HTSUS 9808.00.80. Such procedures shall 
include the following requirements:
    (1) All such certifications by designated Procurement Officers or 
Program Managers shall receive the concurrence of the Chief Counsel of 
the issuing NASA Installation; and
    (2) All such certifications by designated Procurement Officers or 
Program Managers shall be promptly reported to an official identified in 
paragraphs (a)(1), (a)(2), or (a)(3) of this section, as appropriate.



Sec. 1217.104  Certification forms.

    To the extent an authorized NASA official approves a request for 
certification, that official shall sign a certificate in the following 
form:
    (a) For articles procured by NASA, a Customs Service Form CF 7501 
(Entry Summary) shall be completed, and the following certification 
shall be used:

     Articles for the National Aeronautics and Space Administration

    Item 9808.00.80, Harmonized Tariff Schedule of the United States

Program:________________________________________________________________

    I hereby certify that the articles identified in [attached invoice] 
are being imported for the use of the National Aeronautics and Space 
Administration (NASA) in accordance with 9808.00.80, Harmonized Tariff 
Schedule of the United States.

Name____________________________________________________________________

Date____________________________________________________________________

    (b) For articles imported by NASA to implement international 
programs of NASA to which NASA will take title, or which remain the 
property of foreign entities under such programs, no

[[Page 173]]

entry is required pursuant to U.S. note 1 to HTSUS subchapter VIII of 
chapter 98. For such articles, the following certification shall be 
used:

Articles for Use in an International Program of the National Aeronautics 
                        and Space Administration

    Item 9808.00.80, Harmonized Tariff Schedule of the United States

Program:________________________________________________________________

Foreign Owner(s) (if applicable):_______________________________________

    In accordance with subheading 9808.00.80 and U.S. note 1 to 
subchapter VIII of chapter 98, Harmonized Tariff Schedule of the United 
States, I hereby certify that the above-described shipment is being 
brought into the customs territory of the United States as part of an 
international program of the National Aeronautics and Space 
Administration (NASA). No CF 7501 entry is required for this shipment. 
All articles contained in this shipment are, and shall remain, the 
property of NASA or of the foreign entities identified above. Except for 
articles consumed in the execution of the above-described Program, none 
of these articles will be made available for sale or other disposition 
to persons or institutions not directly involved in the Program 
identified above.

Name____________________________________________________________________

Date____________________________________________________________________

    (c) A blanket certificate for a series of imports under a specific 
NASA international program or procurement is authorized but shall 
require written verification by a NASA official designated by a Director 
of a receiving NASA Installation that the articles received meet the 
conditions of the certificate. The blanket certificate shall be in the 
form of the certifications set forth in paragraphs (a) or (b) of this 
section, as appropriate, but shall include the following paragraph at 
the end thereof:

    Before this certification is used to obtain duty-free entry of these 
articles, a cognizant NASA official at the receiving NASA Installation, 
who is designated by the Installation Director, shall verify in writing 
that specifically identified articles to be entered on a particular date 
are the articles described in this certificate or its attachments. This 
verification and this certification shall be presented to the U.S. 
Customs Service at the time entry for the particular articles is sought.

Name____________________________________________________________________

Date____________________________________________________________________

    With respect to articles represented to be: procurements by NASA; or 
imports to implement international programs of NASA to which NASA will 
take title, or foreign-owned articles for use in a NASA international 
program, the NASA official issuing the blanket certificate shall review 
the proposed articles and approve their eligibility for duty-free entry. 
A description of these articles shall either be referred to in the 
blanket certificate and provided in Form CF 7501 (Entry Summary) for 
procurements or attached to the certificate for imports to implement 
NASA international programs, as appropriate.



Sec. 1217.105  Procedures.

    (a) Requests for certification shall be forwarded to an appropriate 
NASA official or designee as provided for in Sec. 1217.103 of this 
part.
    (b) Each request for certification shall be accompanied by:
    (1) A proposed certificate as provided for in Sec. 1217.104 of this 
part;
    (2) The information and documentation required by 19 CFR 10.102(a), 
including invoice documentation or a description of covered articles; 
and
    (3) The anticipated date of entry of entry and port of entry for 
each article. If the article is to be transported in bond from the port 
of arrival to another port of entry in the United States, identify both 
ports.
    (c) The signed certificate and its attachment(s) will be forwarded 
to the NASA Installation responsible for duty-free entry of the 
materials, unless issued at such Installation by an authorized official 
in accordance with Sec. 1217.103(c) of this part. These documents shall 
be presented to an appropriated Customs official at the port(s) of 
entry. The procedures specified in 19 CFR 10.102 will be followed by the 
NASA Installation in obtaining duty-free entry at the Customs port(s) of 
entry. The NASA Installation should ensure that, at the time the 
articles are to be released after Customs entry, the custody of the 
imported articles is transferred directly from the carrier or from the 
U.S. Customs Service to the NASA Installation, its agent, or the launch 
service customer in the case of

[[Page 174]]

a Launch and Associated Services Agreement.
    (d) If articles procured under contract by NASA are imported prior 
to compliance with these procedures and it is essential that the 
articles be released from Customs custody prior to such compliance, the 
procedures outlined in 19 CFR 10.101 may be followed by cognizant NASA 
officials to secure the release of the articles from Customs custody. To 
the extent applicable, the procedures in Sec. 1217.105 of this part 
shall be followed when time permits to obtain duty-free entry for the 
articles released from Customs custody.



Sec. 1217.106  Articles brought into the United States by NASA from space.

    Pursuant to U.S. note 1 subchapter VIII of chapter 98, HTSUS, 
articles brought into the customs territory of the United States by NASA 
from space shall not be considered an importation, and no certification 
or entry of such materials through U.S. Customs shall be required. This 
provision is applicable to articles brought to the U.S. from space 
whether or not the articles were launched into space aboard a NASA 
vehicle.



PART 1221--THE NASA SEAL AND OTHER DEVICES, AND THE CONGRESSIONAL SPACE MEDAL OF HONOR--Table of Contents




 Subpart 1221.1--NASA Seal, NASA Insignia, NASA Logotype, NASA Program 
Identifiers, NASA Flags, and the Agency's Unified Visual Communications 
                                 System

Sec.
1221.100 Scope.
1221.101 Policy.
1221.102 Establishment of the NASA Seal.
1221.103 Establishment of the NASA Insignia.
1221.104 Establishment of the NASA Logotype.
1221.105 Establishment of the NASA Program Identifiers.
1221.106 Establishment of the NASA Flag.
1221.107 Establishment of the NASA Administrator's, Deputy 
          Administrator's, and Associate Deputy Administrator's Flags.
1221.108 Establishment of the NASA Unified Visual Communications System.
1221.109 Use of the NASA Seal.
1221.110 Use of the NASA Insignia.
1221.111 Use of the NASA Logotype.
1221.112 Use of the NASA Program Identifiers.
1221.113 Use of the NASA Flags.
1221.114 Approval of new or change proposals.
1221.115 Violations.
1221.116 Compliance and enforcement.

         Subpart 1221.2--The Congressional Space Medal of Honor

1221.200 Scope.
1221.201 Basis for award of the medal.
1221.202 Description of the medal.
1221.203 Nominations.
1221.204 Proceedings of the NASA Incentive Awards Board.

Appendix A to Part 1221--Congressional Space Medal of Honor



 Subpart 1221.1--NASA Seal, NASA Insignia, NASA Logotype, NASA Program 
Identifiers, NASA Flags, and the Agency's Unified Visual Communications 
                                 System

    Authority: 42 U.S.C. 2472(a) and 2473(c)(1).

    Source: 58 FR 58944, Nov. 5, 1993, unless otherwise noted.



Sec. 1221.100  Scope.

    This subpart sets forth the policy governing the use of the NASA 
Seal, the NASA Insignia, NASA Logotype, NASA Program Identifiers, and 
the NASA Flags. This subpart also establishes and sets forth the concept 
and scope of the NASA Unified Visual Communications System and 
prescribes the policy and guidelines for implementation of the system.



Sec. 1221.101  Policy.

    (a) The NASA Seal, the NASA Insignia, NASA Logotype, NASA Program 
Identifiers, the NASA Flags, and the Agency's Unified Visual 
Communications System, as prescribed in Sec. 1221.102 through Sec. 
1221.108 of this subpart, shall be used exclusively to represent NASA, 
its programs, projects, functions, activities, or elements. The use of 
any devices other than those provided by or subsequently approved in 
accordance with the provisions of this subpart is prohibited.
    (b) The use of the devices prescribed in this section shall be 
governed by the provisions of this subpart. The use of

[[Page 175]]

the devices prescribed in this section for any purpose other than as 
authorized by this subpart is prohibited. Their misuse shall be subject 
to the penalties authorized by statute, as set forth in Sec. 1221.115 
and shall be reported as provided in Sec. 1221.116.
    (c) Any proposal for a new NASA Insignia, NASA Logotype, NASA 
Program Identifier, or for modification to those prescribed in this 
section shall be processed in accordance with Sec. 1221.114.



Sec. 1221.102  Establishment of the NASA Seal.

    The NASA Seal was established by Executive Order 10849 (24 FR 9559), 
November 27, 1959, as amended by Executive Order 10942 (24 FR 4419), May 
22, 1961. The NASA Seal, established by the President, is the Seal of 
the Agency and symbolizes the achievements and goals of NASA and the 
United States in aeronautical and space activities. The NASA Seal shall 
be used as set forth in Sec. 1221.109.
[GRAPHIC] [TIFF OMITTED] TC09SE91.009



Sec. 1221.103  Establishment of the NASA Insignia.

    The NASA Insignia was designed by the Army Institute of Heraldry and 
approved by the Commission of Fine Arts and the NASA Administrator. It 
symbolizes NASA's role in aeronautics and space and is established by 
the NASA Administrator as the signature an design element for visual 
communications formerly reserved for the NASA

[[Page 176]]

Logotype. The NASA Insignia shall be used as set forth in Sec. 
1221.110, the NASA Graphics Standards Manual, NASA Insignia Standards 
Supplement, and any related NASA directive or specification approved by 
the NASA Administrator and published subsequent hereto.
[GRAPHIC] [TIFF OMITTED] TC09SE91.010


[[Page 177]]





Sec. 1221.104  Establishment of the NASA Logotype.

    The NASA Logotype was approved by the Commission of Fine Arts and 
the NASA Administrator. It symbolizes NASA's role in aeronautics and 
space from 1975 to 1992 and has been retired. The NASA Logotype shall be 
used as set forth in Sec. 1221.111.
[GRAPHIC] [TIFF OMITTED] TC09SE91.011



Sec. 1221.105  Establishment of NASA Program Identifiers.

    A separate and unique identifier may be designed and approved in 
connection with or in commemoration of a major NASA program. Each 
approved identifier shall be officially identified by its title such as 
``Apollo,'' ``Skylab,'' ``Viking,'' ``Space Shuttle,'' ``Space 
Station,'' or a major NASA anniversary. NASA Program Identifiers shall 
be used as set forth in Sec. 1221.112 pursuant to approval as set forth 
in Sec. 1221.114.



Sec. 1221.106  Establishment of the NASA Flag.

    The NASA Flags for interior and exterior use were created by the 
NASA Administrator in January 1960. Complete design, size, and color of 
the NASA interior and exterior flags for

[[Page 178]]

manufacturing purposes are detailed in U.S. Army QMG Drawing 5-1-269, 
revision September 14, 1960. The NASA Flags shall be used as set forth 
in Sec. 1221.113.
[GRAPHIC] [TIFF OMITTED] TC09SE91.012


[[Page 179]]





Sec. 1221.107  Establishment of the NASA Administrator's, Deputy Administrator's, and Associate Deputy Administrator's Flags.

    (a) Concurrently with the establishment of the NASA Flag in January 
1960, the NASA Administrator also established NASA Flags to represent 
the NASA Administrator, Deputy Administrator, and Associate Deputy 
Administrator. Each of these flags conforms to the basic design of the 
NASA Flag except for the following:
    (1) The size of the flag is 3 feet x 4 feet;
    (2) The Administrator's Flag has four stars;
    (3) The Deputy Administrator's Flag has three stars; and
    (4) The Associate Deputy Administrator's Flag has two stars.
    (b) Flags representing these senior officials shall be used as set 
forth in Sec. 1221.113.



Sec. 1221.108  Establishment of the NASA Unified Visual Communications System.

    (a) The NASA Administrator directed the establishment of a NASA 
Unified Visual Communications System. The system was developed under the 
Federal Design Improvement Program initiated by the President in May 
1972. This system is the Agencywide program by which NASA projects a 
contemporary, business-like, progressive, and forward-looking image 
through the use of effective design for improved communications. The 
system provides a professional and cohesive NASA identity by imparting 
continuity of graphics design in all layout, reproduction art, 
stationery, forms, publications, signs, films, video productions, 
vehicles, aircraft, and spacecraft markings and other items. It creates 
a unified image which is representative and symbolic of NASA's 
progressive attitudes and programs.
    (b) The Associate Administrator for Public Affairs is responsible 
for the development and implementation of the NASA Unified Visual 
Communications System. With the development of the NASA Unified Visual 
Communications System, the Office of Public Affairs at NASA Headquarters 
created the NASA Graphics Standards Manual and the NASA Insignia 
Standards Supplement which are the official guides for the use and 
application of the NASA Insignia and the NASA Unified Visual 
Communications System.
    (c) The Associate Administrator for Public Affairs, NASA 
Headquarters, has designated a NASA Graphics Coordinator to implement 
and monitor Agencywide design improvements in consonance with the NASA 
Graphics Standards Manual, the NASA Insignia Standards Supplement, and 
the NASA Unified Visual Communications System. The NASA Graphics 
Coordinator will develop and issue changes and additions to the manual 
as required and as new design standards and specifications are developed 
and approved. Copies of the NASA Graphics Standards Manual and the NASA 
Insignia Standards Supplement may be obtained directly from the NASA 
Graphics Coordinator, Office of Public Affairs, NASA Headquarters.
    (d) The Director of each Field Installation has designated an 
official to serve as Graphics Coordinator for his/her Installation. The 
Director, HQ Operations Division, has designated an official to serve as 
the Headquarters Graphics Coordinator. Any changes in these assignments 
shall be reported to the NASA Graphics Coordinator, NASA Headquarters, 
Code POS.
    (e) Graphics Coordinators are responsible for ensuring compliance 
with the NASA Graphics Standards Manual, the NASA Insignia Standards 
Supplement, and the NASA Unified Visual Communications System for their 
respective Installations.



Sec. 1221.109  Use of the NASA Seal.

    (a) The Associate Deputy Administrator shall be responsible for 
custody of the NASA Impression Seal and custody of NASA replica 
(plaques) seals. The NASA Seal is restricted to the following:
    (1) NASA award certificates and medals.
    (2) NASA awards for career service.
    (3) Security credentials and employee identification cards.

[[Page 180]]

    (4) NASA Administrator's documents; the Seal may be used on 
documents such as interagency or intergovernmental agreements and 
special reports to the President and Congress, and on other documents, 
at the discretion of the NASA Administrator.
    (5) Plaques; the design of the NASA Seal may be incorporated in 
plaques for display in Agency auditoriums, presentation rooms, lobbies, 
offices of senior officials, and on the fronts of buildings occupied by 
NASA. A separate NASA seal in the form of a 15-inch, round, bronze-
colored plaque on a walnut-colored wood base is also available, but 
prohibited for use in the above representational manner. It is 
restricted to use only as a presentation item by the Administrator and 
the Deputy Administrator.
    (6) The NASA Flag and the NASA Administrator's, Deputy 
Administrator's, and Associate Deputy Administrator's Flags, which 
incorporate the design of the Seal.
    (7) NASA prestige publications which represent the achievements or 
missions of NASA as a whole.
    (8) Publications (or documents) involving participation by another 
Government agency for which the other Government agency has authorized 
the use of its seal.
    (b) Use of the NASA Seal for any purpose other than as prescribed in 
this section is prohibited, except that the Associate Deputy 
Administrator may authorize, on a case-by-case basis, the use of the 
NASA Seal for purposes other than those prescribed when the Associate 
Deputy Administrator deems such use to be appropriate.



Sec. 1221.110  Use of the NASA Insignia.

    The NASA Insignia is authorized for use on the following:
    (a) NASA articles. (1) NASA letterhead stationary.
    (2) Films, videotapes, and sound recordings produced by or for NASA.
    (3) Wearing apparel and personal property items used by NASA 
employees in the performance of their duties.
    (4) Required uniforms of contractor employees when performing public 
affairs, guard or fire protection duties, and similar duties within NASA 
Installations or at other assigned NASA duty stations, and on any 
required contractor-owned vehicles used exclusively in the performance 
of these duties, when authorized by NASA contracting officers.
    (5) Spacecraft, aircraft, automobiles, trucks and similar vehicles 
owned by, leased to, or contractor-furnished to NASA, or produced for 
NASA by contractors, but excluding NASA-owned vehicles used and operated 
by contractors for the conduct of contractor business.
    (6) Equipment and facilities owned by, leased to, or contractor-
furnished to NASA, such as machinery, major tools, ground handling 
equipment, office and shop furnishings (if appropriate), and similar 
items of a permanent nature, including those produced for NASA by 
contractors.
    (7) NASA publications, including pamphlets, brochures, manuals, 
handbooks, house organs, bulletins, general reports, posters, signs, 
charts, exhibits, and items of similar nature for general use, as 
specified in the NASA Graphics Standards Manual and the NASA Insignia 
Standards Supplement.
    (8) Briefcases or dispatch cases issued by NASA.
    (9) Certificates covering authority to NASA and contractor security 
personnel to carry firearms.
    (10) NASA occupied buildings when the use of the NASA Insignia is 
more appropriate than use of the NASA Seal.
    (b) Personal articles--NASA employees. (1) Business calling cards of 
NASA employees may carry the imprint of the NASA Insignia.
    (2) Limited usage on automobiles. If determined appropriate by the 
cognizant Installation official, it is acceptable to place a NASA 
Insignia sticker on personal automobiles where such identification will 
facilitate entry or control of such vehicles at NASA Installations or 
parking areas.
    (3) Personal items used in connection with NASA employees' 
recreation association activities.
    (4) Items for sale through NASA employees' nonappropriated fund 
activities subject to paragraph (c) of this section.
    (5) NASA employees shall not use the NASA Insignia in any manner 
that would imply that NASA endorses a

[[Page 181]]

commercial product, service, or activity or that material of a 
nonofficial nature represents NASA's official position.
    (c) Miscellaneous articles. (1) The manufacture and commercial sale 
of the NASA Insignia as a separate and distinct device in the form of an 
emblem, patch, insignia, badge, decal, vinylcal, cloth, metal, or other 
material which would preclude NASA's control over its use or application 
is prohibited.
    (2) Use of the NASA Uniform Patches, which incorporate the NASA 
Insignia, is authorized only as prescribed in the NASA Graphics 
Standards Manual and the NASA Insignia Standards Supplement, for NASA 
personnel and NASA contractor personnel identification.
    (3) No approval for use of the NASA Insignia will be authorized when 
its use can be construed as an endorsement by NASA of a product or 
service.
    (4) Items bearing the NASA Insignia such as souvenirs, novelties, 
toys, models, clothing, and similar items (including items for sale 
through the NASA employees' nonappropriated fund activities) may be 
manufactured and sold only after the NASA Insignia application has been 
submitted to, and approved by, the Associate Administrator for Public 
Affairs, or designee, NASA Headquarters, Washington, DC 20546.
    (d) Use of the NASA Insignia for any other purpose than as 
prescribed in this section is prohibited, except that the Associate 
Administrator for Public Affairs may authorize on a case-by-case basis 
the use of the NASA Insignia for other purposes when the Associate 
Administrator for the Public Affairs deems such use to be appropriate.



Sec. 1221.111  Use of the NASA Logotype.

    The NASA Logotype has been retired and is used only in an authentic 
historical context, and only with prior written approval of the NASA 
Administrator.



Sec. 1221.112  Use of the NASA Program Identifiers.

    (a) Official NASA Program Identifiers will be restricted to the uses 
set forth in this section and to such other uses as the Associate 
Administrator for Public Affairs may specifically approve.
    (b) Specific approval is given for the following uses:
    (1) Use of exact reproductions of a badge in the form of a patch 
made of cloth or other material, or a decal, or a gummed sticker on 
articles of wearing apparel and personal property items; and
    (2) Use of exact renderings of a badge on a coin, medal, plaque, or 
other commemorative souvenirs.
    (c) The manufacture and sale or free distribution of identifiers for 
the uses approved or that may be approved under paragraphs (a) and (b) 
of this section are authorized.
    (d) Portrayal of an exact reproduction of a badge in conjunction 
with the advertising of any product or service will be approved on a 
case-by-case basis by the Associate Administrator for Public Affairs.
    (e) The manufacture, sale, or use of any colorable imitation of the 
design of an official NASA Program Identifier will not be approved.



Sec. 1221.113  Use of the NASA Flags.

    (a) The NASA Flag is authorized for use only as follows:
    (1) On or in front of NASA buildings.
    (2) At NASA ceremonies.
    (3) At conferences (including display in NASA conference rooms).
    (4) At governmental or public appearances of NASA executives.
    (5) In private offices of senior officials.
    (6) As otherwise authorized by the NASA Administrator or designee.
    (7) The NASA Flag must be displayed with the United States Flag. 
When the United States Flag and the NASA Flag are displayed on a 
speaker's platform in an auditorium, the United States Flag must occupy 
the position of honor and be placed at the speaker's right as the 
speaker faces the audience, with the NASA Flag at the speaker's left.
    (b) The NASA Administrator's, Deputy Administrator's and Associate 
Deputy Administrator's Flags shall be displayed with the United States 
Flag in the respective offices of these officials but may be temporarily 
removed for use at the discretion of the officials concerned.

[[Page 182]]



Sec. 1221.114  Approval of new or change proposals.

    (a) Except for NASA Astronaut Mission Crew Badges/Patches, any 
proposal to change or modify the emblematic devices set forth in this 
subpart or to introduce a new emblematic device other than as prescribed 
in this subpart requires the written approval of the NASA Administrator 
with prior approval and recommendation of the Director, Public Services 
Division.
    (b) In addition to the written approval of the NASA Administrator, 
any proposal for a new or for a modification to the design of the NASA 
Insignia may also be submitted to the Commission of Fine Arts for its 
advice as to the merit of the design. If approved in writing by the NASA 
Administrator and advice received from the Commission of Fine Arts, the 
NASA Insignia and the use of such NASA Insignia must be prescribed in 
this subpart and published in the Federal Register.
    (c) Proposals to establish, change, or modify NASA Astronaut Crew 
Mission Badges/Patches requires the written approval of the Director, 
Flight Crew Operations, Johnson Space Center; Center Director, Johnson 
Space Center; and the Associate Administrator for Space Flight. Decals/
patches/badges may be produced as soon as the approval cycle is 
completed.



Sec. 1221.115  Violations.

    (a) NASA Seal. Any person who uses the NASA Seal in a manner other 
than as authorized in this subpart shall be subject to the provisions of 
Title 18 U.S.C. 1017.
    (b) NASA Insignia, NASA Logotype, and NASA Program Identifiers. Any 
person who uses the NASA Insignia, NASA Logotype, or NASA Program 
Identifier in a manner other than as authorized in this subpart shall be 
subject to the provisions of title 18 U.S.C. 701.



Sec. 1221.116  Compliance and enforcement.

    In order to ensure adherence to the authorized uses of the NASA 
Seal, the NASA Insignia, the NASA Logotype, NASA Program Identifiers, 
and the NASA Flags as provided, in this subpart, a report of each 
suspected violation of this subpart (including the use of unauthorized 
NASA Insignias) or of questionable usages of the NASA Seal, the NASA 
Insignia, the NASA Logotype, NASA Program Identifiers, or the NASA 
Flags, shall be submitted to the Inspector General, NASA Headquarters, 
in accordance with NASA Management Instruction 9810.1, ``The NASA 
Investigations Program.''



         Subpart 1221.2--The Congressional Space Medal of Honor

    Authority: Pub. L. 91-76, September 29, 1969.

    Source: 43 FR 15624, Apr. 14, 1978, unless otherwise noted.



Sec. 1221.200  Scope.

    This subpart establishes procedures for nominating an astronaut for 
the Congressional Space Medal of Honor.



Sec. 1221.201  Basis for award of the medal.

    (a) The standard of award for the Congressional Space Medal of Honor 
is established by Pub. L. 91-76 (42 U.S.C. 2461) which provides that the 
President may award the Medal to any ``astronaut who in the performance 
of his duties has distinguished himself by exceptionally meritorious 
efforts and contributions to the welfare of the Nation and of mankind.''
    (b) Only one Congressional Space Medal of Honor may be awarded to a 
person. However, for each succeeding act that would otherwise justify 
the award of the Medal, the President may award a suitable bar or other 
device.
    (c) The Medal may be awarded to any person who is or has been 
designated to travel in space and who has distinguished himself or 
herself while undertaking duties in preparation for, execution of, or 
subsequent to, but in connection with, a space flight.
    (d) The Medal may be awarded for actions occurring before the 
effective date of this subpart 1221.2, and, when appropriate, 
posthumously.



Sec. 1221.202  Description of the medal.

    The description of the Congressional Space Medal of Honor, which was 
designed by the Institute of Heraldry, U.S. Army, is set forth in 
appendix A

[[Page 183]]

to this subpart. Each person awarded the Medal also shall receive a 
citation describing the basis for the award.



Sec. 1221.203  Nominations.

    (a) Formal nominations for award of the Congressional Space Medal of 
Honor on behalf of NASA will be made by the Administrator to the 
President.
    (b) Any person may recommend to the Administrator that an astronaut 
be nominated for award of the Medal. Such a recommendation must be in 
writing, and must describe in concise detail the events believed to 
warrant award of the Medal. The recommendation should, if appropriate, 
be accompanied by supporting documentation, such as eyewitness 
statements, extracts from official records, sketches, photographs, etc.
    (c) All recommendations for nominations submitted to the 
Administrator or made on his own initiative will be referred to the NASA 
Incentive Awards Board for the purpose of investigating and making 
findings of fact and giving advice to the Administrator.
    (d) Any recommendation involving an astronaut who is a member of the 
armed services on active duty or who is employed by another agency of 
the Federal Government but temporarily assigned or detailed to NASA 
shall also be transmitted to the Secretary of Defense or the head of the 
employing agency, as appropriate, for his or her recommendation.
    (e) The Administrator will forward to the President his 
recommendation, and that of the astronaut's employing agency, as 
appropriate.



Sec. 1221.204  Proceedings of the NASA Incentive Awards Board.

    The NASA Incentive Awards Board shall thoroughly consider the facts 
giving rise to a recommendation for nomination and shall prepare a 
report for the Administrator. The Board should, to the extent 
practicable, coordinate its efforts with those of the astronaut's 
employing agency, as appropriate. Its final report must take into 
account any pertinent information submitted by the employing agency.

       Appendix A to Part 1221--Congressional Space Medal of Honor

                                 Obverse

                               description

    A circular green enamel wreath of laurel surmounted by a five-
pointed gold star (with vertical point downward) and issuing from 
between each point a gold flame, the star surmounted by a light blue 
enamel cloud bank with five lobes edged in gold bearing a five-pointed 
dark blue enamel star fimbriated gold and charged in center with a 
diamond; standing upon the wreath at top center a gold eagle with wings 
displayed.

                                symbolism

    The laurel wreath, a symbol of great achievement, with the 
overlapping star points, simulates space vehicles moving to greater 
accomplishments through space. The flames signify the dynamic energy of 
the rocket era and the imagination of the men in the space program of 
the United States. The stylized glory cloud alludes to the glory in the 
coat of arms of the United States and to the high esteem of the award. 
The dark blue voided star symbolizes the vast mysteries of outer space 
while the brilliancy of the feat is represented by a diamond. The eagle 
with wings raised in the spirit of peace represents man's first landing 
on another planet.

                                 Reverse

                               description

    The reverse bears in center the inscription ``CONGRESSIONAL'' 
arranged in a semicircle above the inscription ``SPACE MEDAL PRESENTED 
TO''; in base is space for the name of the recipient and the date all 
within an outer circle of fifty stars.

                            Suspension Ribbon

                               description

    A ribbon 1\3/8\ inches in width consisting of the following vertical 
stripes: gold \1/16\ inch, dark blue \1/4\ inch, light blue \9/32\ inch, 
white \1/16\ inch, red \1/16\ inch, white \1/16\ inch, light blue \9/32\ 
inch, dark blue \1/4\ inch, gold \1/16\ inch.

                          cable nos. of colors
Gold......................................  65021 (old gold).
Dark Blue.................................  70076 (independence blue).
Blue......................................  65014 (light blue).
Red.......................................  65006 (scarlet).
White.....................................  65005.
 

                                symbolism

    The scarlet center line on the white band symbolizes the courage of 
the astronauts in the nation's manned space program and the fire power 
of rockets that carry the crew through the earth's atmosphere (light 
blue);

[[Page 184]]

the light blue is the same color as the chief of the shield of the coat 
of arms of the United States which appears on the President's flag. The 
dark blue symbolizes the hostile environment of space, the gold edge 
representing success and accomplishment. Red, white and blue are also 
the national colors of the United States.

                                Miniature

                               description

    A one-half size replica of the medal and suspension ribbon 
approximately 2\5/16\ inches in overall length.

                              Lapel Emblem

                               description

    A miniature of the obverse of the medal, \9/16\ inch in diameter, 
all gold with a diamond in center.

                                 Rosette

                               description

    One-half inch in diameter in the colors of the ribbon.



PART 1230--PROTECTION OF HUMAN SUBJECTS--Table of Contents




Sec.
1230.101 To what does this policy apply?
1230.102 Definitions.
1230.103 Assuring compliance with this policy--research conducted or 
          supported by any Federal Department or Agency.
1230.104-1230.106 [Reserved]
1230.107 IRB membership.
1230.108 IRB functions and operations.
1230.109 IRB review of research.
1230.110 Expedited review procedures for certain kinds of research 
          involving no more than minimal risk, and for minor changes in 
          approved research.
1230.111 Criteria for IRB approval of research.
1230.112 Review by institution.
1230.113 Suspension or termination of IRB approval of research.
1230.114 Cooperative research.
1230.115 IRB records.
1230.116 General requirements for informed consent.
1230.117 Documentation of informed consent.
1230.118 Applications and proposals lacking definite plans for 
          involvement of human subjects.
1230.119 Research undertaken without the intention of involving human 
          subjects.
1230.120 Evaluation and disposition of applications and proposals for 
          research to be conducted or supported by a Federal Department 
          or Agency.
1230.121 [Reserved]
1230.122 Use of Federal funds.
1230.123 Early termination of research support: Evaluation of 
          applications and proposals.
1230.124 Conditions.

    Authority: 5 U.S.C. 301; 42 U.S.C. 300v-1(b).

    Source: 56 FR 28012, 28019, June 18, 1991, unless otherwise noted.



Sec. 1230.101  To what does this policy apply?

    (a) Except as provided in paragraph (b) of this section, this policy 
applies to all research involving human subjects conducted, supported or 
otherwise subject to regulation by any federal department or agency 
which takes appropriate administrative action to make the policy 
applicable to such research. This includes research conducted by federal 
civilian employees or military personnel, except that each department or 
agency head may adopt such procedural modifications as may be 
appropriate from an administrative standpoint. It also includes research 
conducted, supported, or otherwise subject to regulation by the federal 
government outside the United States.
    (1) Research that is conducted or supported by a federal department 
or agency, whether or not it is regulated as defined in Sec. 
1230.102(e), must comply with all sections of this policy.
    (2) Research that is neither conducted nor supported by a federal 
department or agency but is subject to regulation as defined in Sec. 
1230.102(e) must be reviewed and approved, in compliance with Sec. Sec. 
1230.101, 1230.102, and 1230.107 through 1230.117 of this policy, by an 
institutional review board (IRB) that operates in accordance with the 
pertinent requirements of this policy.
    (b) Unless otherwise required by department or agency heads, 
research activities in which the only involvement of human subjects will 
be in one or more of the following categories are exempt from this 
policy:
    (1) Research conducted in established or commonly accepted 
educational settings, involving normal educational practices, such as 
(i) research on regular and special education instructional strategies, 
or (ii) research on the effectiveness of or the comparison

[[Page 185]]

among instructional techniques, curricula, or classroom management 
methods.
    (2) Research involving the use of educational tests (cognitive, 
diagnostic, aptitude, achievement), survey procedures, interview 
procedures or observation of public behavior, unless:
    (i) Information obtained is recorded in such a manner that human 
subjects can be identified, directly or through identifiers linked to 
the subjects; and (ii) any disclosure of the human subjects' responses 
outside the research could reasonably place the subjects at risk of 
criminal or civil liability or be damaging to the subjects' financial 
standing, employability, or reputation.
    (3) Research involving the use of educational tests (cognitive, 
diagnostic, aptitude, achievement), survey procedures, interview 
procedures, or observation of public behavior that is not exempt under 
paragraph (b)(2) of this section, if:
    (i) The human subjects are elected or appointed public officials or 
candidates for public office; or (ii) federal statute(s) require(s) 
without exception that the confidentiality of the personally 
identifiable information will be maintained throughout the research and 
thereafter.
    (4) Research, involving the collection or study of existing data, 
documents, records, pathological specimens, or diagnostic specimens, if 
these sources are publicly available or if the information is recorded 
by the investigator in such a manner that subjects cannot be identified, 
directly or through identifiers linked to the subjects.
    (5) Research and demonstration projects which are conducted by or 
subject to the approval of department or agency heads, and which are 
designed to study, evaluate, or otherwise examine:
    (i) Public benefit or service programs; (ii) procedures for 
obtaining benefits or services under those programs; (iii) possible 
changes in or alternatives to those programs or procedures; or (iv) 
possible changes in methods or levels of payment for benefits or 
services under those programs.
    (6) Taste and food quality evaluation and consumer acceptance 
studies, (i) if wholesome foods without additives are consumed or (ii) 
if a food is consumed that contains a food ingredient at or below the 
level and for a use found to be safe, or agricultural chemical or 
environmental contaminant at or below the level found to be safe, by the 
Food and Drug Administration or approved by the Environmental Protection 
Agency or the Food Safety and Inspection Service of the U.S. Department 
of Agriculture.
    (c) Department or agency heads retain final judgment as to whether a 
particular activity is covered by this policy.
    (d) Department or agency heads may require that specific research 
activities or classes of research activities conducted, supported, or 
otherwise subject to regulation by the department or agency but not 
otherwise covered by this policy, comply with some or all of the 
requirements of this policy.
    (e) Compliance with this policy requires compliance with pertinent 
federal laws or regulations which provide additional protections for 
human subjects.
    (f) This policy does not affect any state or local laws or 
regulations which may otherwise be applicable and which provide 
additional protections for human subjects.
    (g) This policy does not affect any foreign laws or regulations 
which may otherwise be applicable and which provide additional 
protections to human subjects of research.
    (h) When research covered by this policy takes place in foreign 
countries, procedures normally followed in the foreign countries to 
protect human subjects may differ from those set forth in this policy. 
[An example is a foreign institution which complies with guidelines 
consistent with the World Medical Assembly Declaration (Declaration of 
Helsinki amended 1989) issued either by sovereign states or by an 
organization whose function for the protection of human research 
subjects is internationally recognized.] In these circumstances, if a 
department or agency head determines that the procedures prescribed by 
the institution afford protections that are at least equivalent to those 
provided in this policy, the department or agency head may approve the 
substitution of the

[[Page 186]]

foreign procedures in lieu of the procedural requirements provided in 
this policy. Except when otherwise required by statute, Executive Order, 
or the department or agency head, notices of these actions as they occur 
will be published in the Federal Register or will be otherwise published 
as provided in department or agency procedures.
    (i) Unless otherwise required by law, department or agency heads may 
waive the applicability of some or all of the provisions of this policy 
to specific research activities or classes of research activities 
otherwise covered by this policy. Except when otherwise required by 
statute or Executive Order, the department or agency head shall forward 
advance notices of these actions to the Office for Protection from 
Research Risks, Department of Health and Human Services (HHS), and shall 
also publish them in the Federal Register or in such other manner as 
provided in department or agency procedures.\1\
---------------------------------------------------------------------------

    \1\ Institutions with HHS-approved assurances on file will abide by 
provisions of title 45 CFR part 46 subparts A-D. Some of the other 
Departments and Agencies have incorporated all provisions of title 45 
CFR part 46 into their policies and procedures as well. However, the 
exemptions at 45 CFR 46.101(b) do not apply to research involving 
prisoners, fetuses, pregnant women, or human in vitro fertilization, 
subparts B and C. The exemption at 45 CFR 46.101(b)(2), for research 
involving survey or interview procedures or observation of public 
behavior, does not apply to research with children, subpart D, except 
for research involving observations of public behavior when the 
investigator(s) do not participate in the activities being observed.

[56 FR 28012, 28019, June 18, 1991; 56 FR 29756, June 28, 1991]



Sec. 1230.102  Definitions.

    (a) Department or agency head means the head of any federal 
department or agency and any other officer or employee of any department 
or agency to whom authority has been delegated.
    (b) Institution means any public or private entity or agency 
(including federal, state, and other agencies).
    (c) Legally authorized representative means an individual or 
judicial or other body authorized under applicable law to consent on 
behalf of a prospective subject to the subject's participation in the 
procedure(s) involved in the research.
    (d) Research means a systematic investigation, including research 
development, testing and evaluation, designed to develop or contribute 
to generalizable knowledge. Activities which meet this definition 
constitute research for purposes of this policy, whether or not they are 
conducted or supported under a program which is considered research for 
other purposes. For example, some demonstration and service programs may 
include research activities.
    (e) Research subject to regulation, and similar terms are intended 
to encompass those research activities for which a federal department or 
agency has specific responsibility for regulating as a research 
activity, (for example, Investigational New Drug requirements 
administered by the Food and Drug Administration). It does not include 
research activities which are incidentally regulated by a federal 
department or agency solely as part of the department's or agency's 
broader responsibility to regulate certain types of activities whether 
research or non-research in nature (for example, Wage and Hour 
requirements administered by the Department of Labor).
    (f) Human subject means a living individual about whom an 
investigator (whether professional or student) conducting research 
obtains
    (1) Data through intervention or interaction with the individual, or
    (2) Identifiable private information.

Intervention includes both physical procedures by which data are 
gathered (for example, venipuncture) and manipulations of the subject or 
the subject's environment that are performed for research purposes. 
Interaction includes communication or interpersonal contact between 
investigator and subject. ``Private information'' includes information 
about behavior that occurs in a context in which an individual can 
reasonably expect that no observation or recording is taking place, and 
information which has been provided for specific purposes by an 
individual and which the individual can reasonably

[[Page 187]]

expect will not be made public (for example, a medical record). Private 
information must be individually identifiable (i.e., the identity of the 
subject is or may readily be ascertained by the investigator or 
associated with the information) in order for obtaining the information 
to constitute research involving human subjects.
    (g) IRB means an institutional review board established in accord 
with and for the purposes expressed in this policy.
    (h) IRB approval means the determination of the IRB that the 
research has been reviewed and may be conducted at an institution within 
the constraints set forth by the IRB and by other institutional and 
federal requirements.
    (i) Minimal risk means that the probability and magnitude of harm or 
discomfort anticipated in the research are not greater in and of 
themselves than those ordinarily encountered in daily life or during the 
performance of routine physical or psychological examinations or tests.
    (j) Certification means the official notification by the institution 
to the supporting department or agency, in accordance with the 
requirements of this policy, that a research project or activity 
involving human subjects has been reviewed and approved by an IRB in 
accordance with an approved assurance.



Sec. 1230.103  Assuring compliance with this policy--research conducted or supported by any Federal Department or Agency.

    (a) Each institution engaged in research which is covered by this 
policy and which is conducted or supported by a federal department or 
agency shall provide written assurance satisfactory to the department or 
agency head that it will comply with the requirements set forth in this 
policy. In lieu of requiring submission of an assurance, individual 
department or agency heads shall accept the existence of a current 
assurance, appropriate for the research in question, on file with the 
Office for Protection from Research Risks, HHS, and approved for 
federalwide use by that office. When the existence of an HHS-approved 
assurance is accepted in lieu of requiring submission of an assurance, 
reports (except certification) required by this policy to be made to 
department and agency heads shall also be made to the Office for 
Protection from Research Risks, HHS.
    (b) Departments and agencies will conduct or support research 
covered by this policy only if the institution has an assurance approved 
as provided in this section, and only if the institution has certified 
to the department or agency head that the research has been reviewed and 
approved by an IRB provided for in the assurance, and will be subject to 
continuing review by the IRB. Assurances applicable to federally 
supported or conducted research shall at a minimum include:
    (1) A statement of principles governing the institution in the 
discharge of its responsibilities for protecting the rights and welfare 
of human subjects of research conducted at or sponsored by the 
institution, regardless of whether the research is subject to federal 
regulation. This may include an appropriate existing code, declaration, 
or statement of ethical principles, or a statement formulated by the 
institution itself. This requirement does not preempt provisions of this 
policy applicable to department- or agency-supported or regulated 
research and need not be applicable to any research exempted or waived 
under Sec. 1230.101 (b) or (i).
    (2) Designation of one or more IRBs established in accordance with 
the requirements of this policy, and for which provisions are made for 
meeting space and sufficient staff to support the IRB's review and 
recordkeeping duties.
    (3) A list of IRB members identified by name; earned degrees; 
representative capacity; indications of experience such as board 
certifications, licenses, etc., sufficient to describe each member's 
chief anticipated contributions to IRB deliberations; and any employment 
or other relationship between each member and the institution; for 
example: full-time employee, part-time employee, member of governing 
panel or board, stockholder, paid or unpaid consultant. Changes in IRB 
membership shall be reported to the department or agency head, unless in 
accord

[[Page 188]]

with Sec. 1230.103(a) of this policy, the existence of an HHS-approved 
assurance is accepted. In this case, change in IRB membership shall be 
reported to the Office for Protection from Research Risks, HHS.
    (4) Written procedures which the IRB will follow (i) for conducting 
its initial and continuing review of research and for reporting its 
findings and actions to the investigator and the institution; (ii) for 
determining which projects require review more often than annually and 
which projects need verification from sources other than the 
investigators that no material changes have occurred since previous IRB 
review; and (iii) for ensuring prompt reporting to the IRB of proposed 
changes in a research activity, and for ensuring that such changes in 
approved research, during the period for which IRB approval has already 
been given, may not be initiated without IRB review and approval except 
when necessary to eliminate apparent immediate hazards to the subject.
    (5) Written procedures for ensuring prompt reporting to the IRB, 
appropriate institutional officials, and the department or agency head 
of (i) any unanticipated problems involving risks to subjects or others 
or any serious or continuing noncompliance with this policy or the 
requirements or determinations of the IRB and (ii) any suspension or 
termination of IRB approval.
    (c) The assurance shall be executed by an individual authorized to 
act for the institution and to assume on behalf of the institution the 
obligations imposed by this policy and shall be filed in such form and 
manner as the department or agency head prescribes.
    (d) The department or agency head will evaluate all assurances 
submitted in accordance with this policy through such officers and 
employees of the department or agency and such experts or consultants 
engaged for this purpose as the department or agency head determines to 
be appropriate. The department or agency head's evaluation will take 
into consideration the adequacy of the proposed IRB in light of the 
anticipated scope of the institution's research activities and the types 
of subject populations likely to be involved, the appropriateness of the 
proposed initial and continuing review procedures in light of the 
probable risks, and the size and complexity of the institution.
    (e) On the basis of this evaluation, the department or agency head 
may approve or disapprove the assurance, or enter into negotiations to 
develop an approvable one. The department or agency head may limit the 
period during which any particular approved assurance or class of 
approved assurances shall remain effective or otherwise condition or 
restrict approval.
    (f) Certification is required when the research is supported by a 
federal department or agency and not otherwise exempted or waived under 
Sec. 1230.101 (b) or (i). An institution with an approved assurance 
shall certify that each application or proposal for research covered by 
the assurance and by Sec. 1230.103 of this Policy has been reviewed and 
approved by the IRB. Such certification must be submitted with the 
application or proposal or by such later date as may be prescribed by 
the department or agency to which the application or proposal is 
submitted. Under no condition shall research covered by Sec. 1230.103 
of the Policy be supported prior to receipt of the certification that 
the research has been reviewed and approved by the IRB. Institutions 
without an approved assurance covering the research shall certify within 
30 days after receipt of a request for such a certification from the 
department or agency, that the application or proposal has been approved 
by the IRB. If the certification is not submitted within these time 
limits, the application or proposal may be returned to the institution.

(Approved by the Office of Management and Budget under control number 
9999-0020)

[56 FR 28012, 28019, June 18, 1991; 56 FR 29756, June 28, 1991]



Sec. Sec. 1230.104-1230.106  [Reserved]



Sec. 1230.107  IRB membership.

    (a) Each IRB shall have at least five members, with varying 
backgrounds to promote complete and adequate review of research 
activities commonly conducted by the institution. The IRB shall be 
sufficiently qualified through the experience and expertise of its 
members, and the diversity of the

[[Page 189]]

members, including consideration of race, gender, and cultural 
backgrounds and sensitivity to such issues as community attitudes, to 
promote respect for its advice and counsel in safeguarding the rights 
and welfare of human subjects. In addition to possessing the 
professional competence necessary to review specific research 
activities, the IRB shall be able to ascertain the acceptability of 
proposed research in terms of institutional commitments and regulations, 
applicable law, and standards of professional conduct and practice. The 
IRB shall therefore include persons knowledgeable in these areas. If an 
IRB regularly reviews research that involves a vulnerable category of 
subjects, such as children, prisoners, pregnant women, or handicapped or 
mentally disabled persons, consideration shall be given to the inclusion 
of one or more individuals who are knowledgeable about and experienced 
in working with these subjects.
    (b) Every nondiscriminatory effort will be made to ensure that no 
IRB consists entirely of men or entirely of women, including the 
institution's consideration of qualified persons of both sexes, so long 
as no selection is made to the IRB on the basis of gender. No IRB may 
consist entirely of members of one profession.
    (c) Each IRB shall include at least one member whose primary 
concerns are in scientific areas and at least one member whose primary 
concerns are in nonscientific areas.
    (d) Each IRB shall include at least one member who is not otherwise 
affiliated with the institution and who is not part of the immediate 
family of a person who is affiliated with the institution.
    (e) No IRB may have a member participate in the IRB's initial or 
continuing review of any project in which the member has a conflicting 
interest, except to provide information requested by the IRB.
    (f) An IRB may, in its discretion, invite individuals with 
competence in special areas to assist in the review of issues which 
require expertise beyond or in addition to that available on the IRB. 
These individuals may not vote with the IRB.



Sec. 1230.108  IRB functions and operations.

    In order to fulfill the requirements of this policy each IRB shall:
    (a) Follow written procedures in the same detail as described in 
Sec. 1230.103(b)(4) and, to the extent required by, Sec. 
1230.103(b)(5).
    (b) Except when an expedited review procedure is used (see Sec. 
1230.110), review proposed research at convened meetings at which a 
majority of the members of the IRB are present, including at least one 
member whose primary concerns are in nonscientific areas. In order for 
the research to be approved, it shall receive the approval of a majority 
of those members present at the meeting.



Sec. 1230.109  IRB review of research.

    (a) An IRB shall review and have authority to approve, require 
modifications in (to secure approval), or disapprove all research 
activities covered by this policy.
    (b) An IRB shall require that information given to subjects as part 
of informed consent is in accordance with Sec. 1230.116. The IRB may 
require that information, in addition to that specifically mentioned in 
Sec. 1230.116, be given to the subjects when in the IRB's judgment the 
information would meaningfully add to the protection of the rights and 
welfare of subjects.
    (c) An IRB shall require documentation of informed consent or may 
waive documentation in accordance with Sec. 1230.117.
    (d) An IRB shall notify investigators and the institution in writing 
of its decision to approve or disapprove the proposed research activity, 
or of modifications required to secure IRB approval of the research 
activity. If the IRB decides to disapprove a research activity, it shall 
include in its written notification a statement of the reasons for its 
decision and give the investigator an opportunity to respond in person 
or in writing.
    (e) An IRB shall conduct continuing review of research covered by 
this policy at intervals appropriate to the degree of risk, but not less 
than once per

[[Page 190]]

year, and shall have authority to observe or have a third party observe 
the consent process and the research.

(Approved by the Office of Management and Budget under control number 
9999-0020)



Sec. 1230.110  Expedited review procedures for certain kinds of research involving no more than minimal risk, and for minor changes in approved research.

    (a) The Secretary, HHS, has established, and published as a Notice 
in the Federal Register, a list of categories of research that may be 
reviewed by the IRB through an expedited review procedure. The list will 
be amended, as appropriate after consultation with other departments and 
agencies, through periodic republication by the Secretary, HHS, in the 
Federal Register. A copy of the list is available from the Office for 
Protection from Research Risks, National Institutes of Health, HHS, 
Bethesda, Maryland 20892.
    (b) An IRB may use the expedited review procedure to review either 
or both of the following:
    (1) Some or all of the research appearing on the list and found by 
the reviewer(s) to involve no more than minimal risk,
    (2) Minor changes in previously approved research during the period 
(of one year or less) for which approval is authorized.

Under an expedited review procedure, the review may be carried out by 
the IRB chairperson or by one or more experienced reviewers designated 
by the chairperson from among members of the IRB. In reviewing the 
research, the reviewers may exercise all of the authorities of the IRB 
except that the reviewers may not disapprove the research. A research 
activity may be disapproved only after review in accordance with the 
non-expedited procedure set forth in Sec. 1230.108(b).
    (c) Each IRB which uses an expedited review procedure shall adopt a 
method for keeping all members advised of research proposals which have 
been approved under the procedure.
    (d) The department or agency head may restrict, suspend, terminate, 
or choose not to authorize an institution's or IRB's use of the 
expedited review procedure.



Sec. 1230.111  Criteria for IRB approval of research.

    (a) In order to approve research covered by this policy the IRB 
shall determine that all of the following requirements are satisfied:
    (1) Risks to subjects are minimized: (i) By using procedures which 
are consistent with sound research design and which do not unnecessarily 
expose subjects to risk, and (ii) whenever appropriate, by using 
procedures already being performed on the subjects for diagnostic or 
treatment purposes.
    (2) Risks to subjects are reasonable in relation to anticipated 
benefits, if any, to subjects, and the importance of the knowledge that 
may reasonably be expected to result. In evaluating risks and benefits, 
the IRB should consider only those risks and benefits that may result 
from the research (as distinguished from risks and benefits of therapies 
subjects would receive even if not participating in the research). The 
IRB should not consider possible long-range effects of applying 
knowledge gained in the research (for example, the possible effects of 
the research on public policy) as among those research risks that fall 
within the purview of its responsibility.
    (3) Selection of subjects is equitable. In making this assessment 
the IRB should take into account the purposes of the research and the 
setting in which the research will be conducted and should be 
particularly cognizant of the special problems of research involving 
vulnerable populations, such as children, prisoners, pregnant women, 
mentally disabled persons, or economically or educationally 
disadvantaged persons.
    (4) Informed consent will be sought from each prospective subject or 
the subject's legally authorized representative, in accordance with, and 
to the extent required by Sec. 1230.116.
    (5) Informed consent will be appropriately documented, in accordance 
with, and to the extent required by Sec. 1230.117.
    (6) When appropriate, the research plan makes adequate provision for

[[Page 191]]

monitoring the data collected to ensure the safety of subjects.
    (7) When appropriate, there are adequate provisions to protect the 
privacy of subjects and to maintain the confidentiality of data.
    (b) When some or all of the subjects are likely to be vulnerable to 
coercion or undue influence, such as children, prisoners, pregnant 
women, mentally disabled persons, or economically or educationally 
disadvantaged persons, additional safeguards have been included in the 
study to protect the rights and welfare of these subjects.



Sec. 1230.112  Review by institution.

    Research covered by this policy that has been approved by an IRB may 
be subject to further appropriate review and approval or disapproval by 
officials of the institution. However, those officials may not approve 
the research if it has not been approved by an IRB.



Sec. 1230.113  Suspension or termination of IRB approval of research.

    An IRB shall have authority to suspend or terminate approval of 
research that is not being conducted in accordance with the IRB's 
requirements or that has been associated with unexpected serious harm to 
subjects. Any suspension or termination of approval shall include a 
statement of the reasons for the IRB's action and shall be reported 
promptly to the investigator, appropriate institutional officials, and 
the department or agency head.

(Approved by the Office of Management and Budget under control number 
9999-0020)



Sec. 1230.114  Cooperative research.

    Cooperative research projects are those projects covered by this 
policy which involve more than one institution. In the conduct of 
cooperative research projects, each institution is responsible for 
safeguarding the rights and welfare of human subjects and for complying 
with this policy. With the approval of the department or agency head, an 
institution participating in a cooperative project may enter into a 
joint review arrangement, rely upon the review of another qualified IRB, 
or make similar arrangements for avoiding duplication of effort.



Sec. 1230.115  IRB records.

    (a) An institution, or when appropriate an IRB, shall prepare and 
maintain adequate documentation of IRB activities, including the 
following:
    (1) Copies of all research proposals reviewed, scientific 
evaluations, if any, that accompany the proposals, approved sample 
consent documents, progress reports submitted by investigators, and 
reports of injuries to subjects.
    (2) Minutes of IRB meetings which shall be in sufficient detail to 
show attendance at the meetings; actions taken by the IRB; the vote on 
these actions including the number of members voting for, against, and 
abstaining; the basis for requiring changes in or disapproving research; 
and a written summary of the discussion of controverted issues and their 
resolution.
    (3) Records of continuing review activities.
    (4) Copies of all correspondence between the IRB and the 
investigators.
    (5) A list of IRB members in the same detail as described is Sec. 
1230.103(b)(3).
    (6) Written procedures for the IRB in the same detail as described 
in Sec. Sec. 1230.103(b)(4) and 1230.103(b)(5).
    (7) Statements of significant new findings provided to subjects, as 
required by Sec. 1230.116(b)(5).
    (b) The records required by this policy shall be retained for at 
least 3 years, and records relating to research which is conducted shall 
be retained for at least 3 years after completion of the research. All 
records shall be accessible for inspection and copying by authorized 
representatives of the department or agency at reasonable times and in a 
reasonable manner.

(Approved by the Office of Management and Budget under control number 
9999-0020)



Sec. 1230.116  General requirements for informed consent.

    Except as provided elsewhere in this policy, no investigator may 
involve a human being as a subject in research covered by this policy 
unless the investigator has obtained the legally effective informed 
consent of the subject or the subject's legally authorized 
representative. An investigator shall seek such consent only under 
circumstances

[[Page 192]]

that provide the prospective subject or the representative sufficient 
opportunity to consider whether or not to participate and that minimize 
the possibility of coercion or undue influence. The information that is 
given to the subject or the representative shall be in language 
understandable to the subject or the representative. No informed 
consent, whether oral or written, may include any exculpatory language 
through which the subject or the representative is made to waive or 
appear to waive any of the subject's legal rights, or releases or 
appears to release the investigator, the sponsor, the institution or its 
agents from liability for negligence.
    (a) Basic elements of informed consent. Except as provided in 
paragraph (c) or (d) of this section, in seeking informed consent the 
following information shall be provided to each subject:
    (1) A statement that the study involves research, an explanation of 
the purposes of the research and the expected duration of the subject's 
participation, a description of the procedures to be followed, and 
identification of any procedures which are experimental;
    (2) A description of any reasonably foreseeable risks or discomforts 
to the subject;
    (3) A description of any benefits to the subject or to others which 
may reasonably be expected from the research;
    (4) A disclosure of appropriate alternative procedures or courses of 
treatment, if any, that might be advantageous to the subject;
    (5) A statement describing the extent, if any, to which 
confidentiality of records identifying the subject will be maintained;
    (6) For research involving more than minimal risk, an explanation as 
to whether any compensation and an explanation as to whether any medical 
treatments are available if injury occurs and, if so, what they consist 
of, or where further information may be obtained;
    (7) An explanation of whom to contact for answers to pertinent 
questions about the research and research subjects' rights, and whom to 
contact in the event of a research-related injury to the subject; and
    (8) A statement that participation is voluntary, refusal to 
participate will involve no penalty or loss of benefits to which the 
subject is otherwise entitled, and the subject may discontinue 
participation at any time without penalty or loss of benefits to which 
the subject is otherwise entitled.
    (b) Additional elements of informed consent. When appropriate, one 
or more of the following elements of information shall also be provided 
to each subject:
    (1) A statement that the particular treatment or procedure may 
involve risks to the subject (or to the embryo or fetus, if the subject 
is or may become pregnant) which are currently unforeseeable;
    (2) Anticipated circumstances under which the subject's 
participation may be terminated by the investigator without regard to 
the subject's consent;
    (3) Any additional costs to the subject that may result from 
participation in the research;
    (4) The consequences of a subject's decision to withdraw from the 
research and procedures for orderly termination of participation by the 
subject;
    (5) A statement that significant new findings developed during the 
course of the research which may relate to the subject's willingness to 
continue participation will be provided to the subject; and
    (6) The approximate number of subjects involved in the study.
    (c) An IRB may approve a consent procedure which does not include, 
or which alters, some or all of the elements of informed consent set 
forth above, or waive the requirement to obtain informed consent 
provided the IRB finds and documents that:
    (1) The research or demonstration project is to be conducted by or 
subject to the approval of state or local government officials and is 
designed to study, evaluate, or otherwise examine: (i) Public benefit of 
service programs; (ii) procedures for obtaining benefits or services 
under those programs; (iii) possible changes in or alternatives to those 
programs or procedures; or (iv) possible changes in methods or levels of 
payment for benefits or services under those programs; and

[[Page 193]]

    (2) The research could not practicably be carried out without the 
waiver or alteration.
    (d) An IRB may approve a consent procedure which does not include, 
or which alters, some or all of the elements of informed consent set 
forth in this section, or waive the requirements to obtain informed 
consent provided the IRB finds and documents that:
    (1) The research involves no more than minimal risk to the subjects;
    (2) The waiver or alteration will not adversely affect the rights 
and welfare of the subjects;
    (3) The research could not practicably be carried out without the 
waiver or alteration; and
    (4) Whenever appropriate, the subjects will be provided with 
additional pertinent information after participation.
    (e) The informed consent requirements in this policy are not 
intended to preempt any applicable federal, state, or local laws which 
require additional information to be disclosed in order for informed 
consent to be legally effective.
    (f) Nothing in this policy is intended to limit the authority of a 
physician to provide emergency medical care, to the extent the physician 
is permitted to do so under applicable federal, state, or local law.

(Approved by the Office of Management and Budget under control number 
9999-0020)



Sec. 1230.117  Documentation of informed consent.

    (a) Except as provided in paragraph (c) of this section, informed 
consent shall be documented by the use of a written consent form 
approved by the IRB and signed by the subject or the subject's legally 
authorized representative. A copy shall be given to the person signing 
the form.
    (b) Except as provided in paragraph (c) of this section, the consent 
form may be either of the following:
    (1) A written consent document that embodies the elements of 
informed consent required by Sec. 1230.116. This form may be read to 
the subject or the subject's legally authorized representative, but in 
any event, the investigator shall give either the subject or the 
representative adequate opportunity to read it before it is signed; or
    (2) A short form written consent document stating that the elements 
of informed consent required by Sec. 1230.116 have been presented 
orally to the subject or the subject's legally authorized 
representative. When this method is used, there shall be a witness to 
the oral presentation. Also, the IRB shall approve a written summary of 
what is to be said to the subject or the representative. Only the short 
form itself is to be signed by the subject or the representative. 
However, the witness shall sign both the short form and a copy of the 
summary, and the person actually obtaining consent shall sign a copy of 
the summary. A copy of the summary shall be given to the subject or the 
representative, in addition to a copy of the short form.
    (c) An IRB may waive the requirement for the investigator to obtain 
a signed consent form for some or all subjects if it finds either:
    (1) That the only record linking the subject and the research would 
be the consent document and the principal risk would be potential harm 
resulting from a breach of confidentiality. Each subject will be asked 
whether the subject wants documentation linking the subject with the 
research, and the subject's wishes will govern; or
    (2) That the research presents no more than minimal risk of harm to 
subjects and involves no procedures for which written consent is 
normally required outside of the research context.
    In cases in which the documentation requirement is waived, the IRB 
may require the investigator to provide subjects with a written 
statement regarding the research.

(Approved by the Office of Management and Budget under control number 
9999-0020)



Sec. 1230.118  Applications and proposals lacking definite plans for involvement of human subjects.

    Certain types of applications for grants, cooperative agreements, or 
contracts are submitted to departments or agencies with the knowledge 
that subjects may be involved within the period of support, but definite 
plans would not

[[Page 194]]

normally be set forth in the application or proposal. These include 
activities such as institutional type grants when selection of specific 
projects is the institution's responsibility; research training grants 
in which the activities involving subjects remain to be selected; and 
projects in which human subjects' involvement will depend upon 
completion of instruments, prior animal studies, or purification of 
compounds. These applications need not be reviewed by an IRB before an 
award may be made. However, except for research exempted or waived under 
Sec. 1230.101 (b) or (i), no human subjects may be involved in any 
project supported by these awards until the project has been reviewed 
and approved by the IRB, as provided in this policy, and certification 
submitted, by the institution, to the department or agency.



Sec. 1230.119  Research undertaken without the intention of involving human subjects.

    In the event research is undertaken without the intention of 
involving human subjects, but it is later proposed to involve human 
subjects in the research, the research shall first be reviewed and 
approved by an IRB, as provided in this policy, a certification 
submitted, by the institution, to the department or agency, and final 
approval given to the proposed change by the department or agency.



Sec. 1230.120  Evaluation and disposition of applications and proposals for research to be conducted or supported by a Federal Department or Agency.

    (a) The department or agency head will evaluate all applications and 
proposals involving human subjects submitted to the department or agency 
through such officers and employees of the department or agency and such 
experts and consultants as the department or agency head determines to 
be appropriate. This evaluation will take into consideration the risks 
to the subjects, the adequacy of protection against these risks, the 
potential benefits of the research to the subjects and others, and the 
importance of the knowledge gained or to be gained.
    (b) On the basis of this evaluation, the department or agency head 
may approve or disapprove the application or proposal, or enter into 
negotiations to develop an approvable one.



Sec. 1230.121  [Reserved]



Sec. 1230.122  Use of Federal funds.

    Federal funds administered by a department or agency may not be 
expended for research involving human subjects unless the requirements 
of this policy have been satisfied.



Sec. 1230.123  Early termination of research support: Evaluation of applications and proposals.

    (a) The department or agency head may require that department or 
agency support for any project be terminated or suspended in the manner 
prescribed in applicable program requirements, when the department or 
agency head finds an institution has materially failed to comply with 
the terms of this policy.
    (b) In making decisions about supporting or approving applications 
or proposals covered by this policy the department or agency head may 
take into account, in addition to all other eligibility requirements and 
program criteria, factors such as whether the applicant has been subject 
to a termination or suspension under paragraph (a) of this section and 
whether the applicant or the person or persons who would direct or has 
have directed the scientific and technical aspects of an activity has 
have, in the judgment of the department or agency head, materially 
failed to discharge responsibility for the protection of the rights and 
welfare of human subjects (whether or not the research was subject to 
federal regulation).



Sec. 1230.124  Conditions.

    With respect to any research project or any class of research 
projects the department or agency head may impose additional conditions 
prior to or at the time of approval when in the judgment of the 
department or agency head additional conditions are necessary for the 
protection of human subjects.

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PART 1232--CARE AND USE OF ANIMALS IN THE CONDUCT OF NASA ACTIVITIES--Table of Contents




Sec.
1232.100 Scope.
1232.101 Applicability.
1232.102 Policy.
1232.103 Definitions.
1232.104 Implementation procedures by non-NASA institutions.
1232.105 Implementation procedures by NASA field installations.
1232.106 Management authority and responsibility.
1232.107 Sanctions.

    Authority: 42 U.S.C. Sec. 2451; Pub. L. 89-544, as amended; 7 U.S.C. 
Sec. 2131; 39 U.S.C. Sec. 3001; 9 CFR subchapter A parts 1, 2, 3, and 4; 
and Pub. L. 99-158, Sec. 495.

    Source: 54 FR 35870, Aug. 30, 1989, unless otherwise noted.



Sec. 1232.100  Scope.

    This rule establishes the policy, implementation procedures, and 
management authority and responsibility for the care and use of 
vertebrate animals (hereinafter referred to as ``animal subjects'') in 
the conduct of NASA activities.



Sec. 1232.101  Applicability.

    This rule applies to NASA Headquarters and NASA field installations 
and will be followed in all activities using animal subjects that are 
supported by NASA, conducted in NASA facilities, aircraft, or 
spacecraft, or which involve NASA to any degree. All activities using 
animal subjects conducted under a contract, grant, cooperative 
agreement, memorandum of understanding, or joint endeavor agreement 
entered into by NASA and another Government agency, private entity, non-
Federal public entity, or foreign entity are included within the scope 
of this rule.



Sec. 1232.102  Policy.

    (a) It is NASA policy to require its laboratories and the 
institutions performing NASA-supported activities using animal subjects 
to comply with the Animal Welfare Act of 1966 (Pub. L. 89-544), as 
amended (Pub. L. 91-579, Pub. L. 94-279, and Pub. L. 99-198), 7 U.S.C. 
2131 et seq., and 39 U.S.C. 3001, and with the regulations promulgated 
thereunder by the Secretary of Agriculture (9 CFR subchapter A parts 1, 
2, 3, and 4) pertaining to the care, handling, and treatment of animal 
subjects held or used for research, testing, teaching, or other 
activities supported by the Federal government. Investigators shall 
follow the guidelines described in the National Institutes of Health 
(NIH) Publication No. 85-23 (Rev. 1985), ``Guide for the Care and Use of 
Laboratory Animals'' (the Guide) or subsequent revisions. Attention is 
called to the U.S. Government ``Principles for the Utilization and Care 
of Vertebrate Animals Used in Testing, Research, and Training'' on pp. 
81-83 of the Guide. In order to implement these guidelines and 
principles, investigators will comply with the revised Public Health 
Service (PHS) Policy on Humane Care and Use of Laboratory Animals 
(hereinafter referred to as PHS Policy) effective November 1, 1986.\1\
---------------------------------------------------------------------------

    \1\ Available from the Office of Protection from Research Risks 
(OPRR), National Institutes of Health, 9000 Rockville Pike, Bldg. 31, 
Room 5B59, Bethesda, MD 20892, Telephone 301-496-7005.
---------------------------------------------------------------------------

    (b) This rule authorizes NASA to have the same authority for NASA-
supported programs as that delegated to PHS by the PHS Policy, including 
the functions and responsibilities of the Animal Care and Use Committees 
(ACUC's).
    (c) All research supported by NASA that involves activities using 
animal subjects shall be conducted under protocols that conform to this 
rule and that are reviewed and approved as prescribed in this rule.



Sec. 1232.103  Definitions.

    The following definitions of terms comply with the PHS Policy and 
apply to the conduct of all NASA activities related to the care and use 
of animal subjects.
    (a) Activity includes research, testing of hardware for animal use, 
flight experimentation, and any other tasks involving the use of animal 
subjects.
    (b) Animal is any live vertebrate animal.
    (c) Animal Care and Use Committee (ACUC) is the committee 
established at

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each institution and NASA field installation involved in research with 
animal subjects. It is responsible for evaluating the care and use of 
animal subjects at the facility and for ensuring that the care and use 
of animal subjects at the facility is in compliance with this rule and 
PHS Policy.
    (d) Authorized NASA Official is the Director, Life Sciences 
Division, NASA Headquarters, or designee, who is the NASA 
Administrator's representative and is responsible for all NASA 
activities involving animal subjects. This individual is responsible for 
implementation of the provisions of this rule and for ensuring that 
agency programs involving animal subjects comply fully with all 
applicable laws, regulations, and guidelines.
    (e) Field Installation Director is the Director of a NASA Field 
Installation, or designee, who is the institutional official responsible 
for the care and use of animal subjects in research conducted at that 
field installation and for ensuring compliance with this rule at that 
field installation.
    (f) Investigator is any person who uses or proposes to use live 
animal subjects in NASA-supported activities, e.g., receives funds, 
salaries, or support under a grant, award, agreement, contract, or 
direct employment by NASA, or the use of any NASA facilities, aircraft, 
or spacecraft for the purpose of carrying out research, tests, or 
experiments using animal subjects.
    (g) PHS Assurance is a document prepared by an awardee institution 
assuring its compliance with PHS Policy.
    (h) Research of Flight Program Manager is the NASA Headquarters 
manager of each program in which NASA has a manifest interest.
    (i) Supported pertains to activities either funded in part or in 
whole by NASA or an approved activity that is not funded by NASA but 
that utilizes NASA facilities, including spacecraft and aircraft.
    (j) Veterinarian is the NASA attending veterinarian, a person who 
has graduated from a veterinary school accredited by the American 
Veterinary Medical Association's Council on Education or has a 
certificate issued by the American Veterinary Medical Association's 
Education Commission for Foreign Veterinary Graduates, has received 
training and/or experience in the care and management of the species 
being attended, and who has direct or delegated authority and 
responsibility for activities involving animal subjects at the NASA 
field installation.



Sec. 1232.104  Implementation procedures by non-NASA institutions.

    (a) Proposal Information. No animal subjects may be utilized unless 
a proposal justifying and describing their use is submitted to NASA for 
approval. The required proposal information is outlined in the PHS 
Policy (IV.D.1.a.-e.).
    (b) Proposal Approval by the Institutional ACUC. Before a proposal 
for research involving the use of animal subjects will be considered for 
NASA support, the NASA Headquarters Research or Flight Program Manager 
must receive a statement that the research has been reviewed in 
accordance with the PHS Policy (IV.C.) and approved by the appropriate 
ACUC at the participating institution.
    (c) Proposal Approval for Flight Experiments. In addition to the 
institution's ACUC review, activities involving animal subjects to be 
flown on NASA spacecraft will be subject to review and approval by the 
Ames Research Center (ARC) ACUC. The ARC ACUC will submit each 
evaluation report to the ARC Director who will transmit the report with 
his/her recommendation to the Authorized NASA Official, NASA 
Headquarters. Animal activities to be flown onboard NASA manned 
spacecraft may also be subject to review by the Human Research Policy 
and Procedures Committee (HRPPC) at the Johnson Space Center (JSC). 
Animal activities utilizing the facilities of any NASA field 
installation are also subject to approval of that field installation's 
ACUC (Sec. 1232.105(d)).
    (d) Institutions with PHS Assurance on File. The institution, by an 
approved or provisionally acceptable Assurance on file at the NIH Office 
for Protection from Research Risks (OPRR), Department of Health and 
Human Services (HHS), assures NASA that it will comply with the PHS 
Policy. The Assurance file number must be included in

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the research proposal submitted to NASA.
    (e) Institutions with no PHS Assurance on File. Proposals from 
institutions without an approved Assurance on file with the NIH OPRR 
will first be peer-reviewed for scientific merit. If the proposed 
research is deemed worthy of support, NASA will arrange for a special 
Assurance to be negotiated by the Director, Life Sciences Division, NASA 
Headquarters. The arrangements for a special Assurance review by NIH 
should be undertaken in consultation with the NASA representative to the 
Interagency Research Animal Committee (IRAC) and will be handled on a 
case-by-case basis.
    (f) Foreign institutions must comply with the PHS Policy (see 
Section II Of PHS Policy) and this rule before being supported by NASA 
for any activities involving animal subjects.



Sec. 1232.105  Implementation procedures by NASA field installations.

    (a) Proposal Information. The information required for proposals 
involving the use of animal subjects is identical to that described in 
Sec. 1232.104(a).
    (b) Proposal Approval by the NASA ACUC. Before a proposal for 
research involving the use of animal subjects will be considered for 
NASA support, the NASA Headquarters Research or Flight Program Manager 
must receive a statement that the research has been reviewed in 
accordance with PHS Policy (IV.C.) and approved by the ACUC at the 
appropriate field installation.
    (c) Proposal Approval for Flight Experiments. In addition to the 
Field Installation ACUC review, activities involving animal subjects to 
be flown on NASA spacecraft will be subject to review and approval by 
the ARC ACUC. The ARC ACUC will submit each evalaution report to the ARC 
Director who will transmit the report with his/her recommendation to the 
Authorized NASA Official, NASA Headquarters. Animal activities to be 
flown onboard NASA manned spacecraft may also be subject to review by 
the HRPPC at JSC.
    (d) Approval for Use of Field Installation Facilities. The NASA 
Field Installation ACUC will review and approve or disapprove those 
parts of proposals that call for the use of their facilities to conduct 
any activity involving animal subjects (e.g., Kennedy Space Center or 
ARC Dryden facilities used to support experiments using animal 
subjects). The ACUC will submit each evaluation report to the Field 
Installation Director who will transmit the report with his/her 
recommendation to the Authorized NASA Official, NASA Headquarters.
    (e) NASA Animal Care and Use Committees. (1) The Director of each 
NASA Field Installation that is involved in animal research activities 
will establish an ACUC to ensure compliance with the policies and 
provisions of this rule. The membership of the ACUC shall be in 
accordance with PHS Policy.
    (2) The NASA Field Installation ACUC's will review and approve or 
disapprove all proposals using animal subjects. In accordance with the 
PHS Policy (IV.C.), the ACUC will submit each report to the Field 
Installation Director who will, upon request, transmit the report with 
his/her recommendation to the Authorized NASA Official, NASA 
Headquarters.
    (3) NASA ACUC's have the authority to approve, disapprove, or 
require changes to be made in those components of proposals involving 
the care and use of animal subjects that are submitted by NASA 
investigators. All decisions shall be based on the response of a 
majority of a quorum of the members. A minority opinion including 
abstentions should be recorded; this record should include a 
justification for the opinion.
    (4) The ACUC shall conduct continuing review of proposals at 
appropriate intervals as determined by the ACUC, but not less than once 
every 3 years.
    (5) Proposals that have been approved by the ACUC may be subject to 
further appropriate review by the Authorized NASA Official, NASA 
Headquarters. However, the official may not approve those sections of a 
proposal related to the care and use of animal subjects if they have not 
been approved by the ACUC.
    (6) Once experimental procedures are approved, no substantial 
changes can be made unless a formal request with

[[Page 198]]

appropriate justification for such a request is submitted to and 
approved by the appropriate ACUC. If the experiment involves exposure of 
the flight crew to the animal subjects, the HRPPC at JSC must review and 
approve the proposed modifications. Copies of ACUC approval of the 
proposed modifications shall be submitted to the Field Installation 
Director who will, upon request, transmit the report to the Authorized 
NASA Official, NASA Headquarters.
    (7) Other functions of the field installation ACUC include:
    (i) Reviewing at least once every 6 months the field installation's 
program for humane care and use of animals, using the Guide as a basis 
for evaluation;
    (ii) Inspecting at least once every 6 months all of the field 
installation's animal facilities (including satellite facilities), using 
the Guide as a basis for evaluation;
    (iii) Preparing reports of the ACUC evaluations conducted as 
required by Sec. 1232.105 (e)(7)(i) and (ii), and submitting the 
reports to the Field Installation Director. (Note: the reports shall be 
updated at least once every 6 months upon completion of the required 
semiannual evaluations and shall be maintained by the field installation 
and made available to the Authorized NASA Official upon request. The 
reports must contain a description of the nature and extent of the field 
installation's adherence to the Guide and this rule and must identify 
specifically any departures from the provisions of the Guide and this 
rule, and must state the reasons for each departure. The reports must 
distinguish significant deficiencies from minor deficiencies. A 
significant deficiency is one which, consistent with PHS Policy, and, in 
the judgment of the ACUC and the Field Installation Director, is or may 
be a threat to the health or safety of the animals. If program or 
facility deficiencies are noted, the reports must contain a reasonable 
and specific plan and schedule for correcting each deficiency.)
    (iv) Reviewing concerns involving the care and use of animals at the 
field installation;
    (v) Making recommendations to the Field Installation Director 
regarding any aspect of the field installation's animal program, 
facilities, or personnel training.
    (f) NASA Assurances. Each NASA field installation involved in 
activities using animal subjects must assure that its programs and 
facilities have been evaluated and accredited by the American 
Association for the Accreditation of Laboratory Animal Care (AAALAC). 
Written assurance of compliance with the provisions of the PHS Policy 
and this rule is also required from NASA field installations involved in 
animal activities before approval of any such activity. This Assurance 
should follow the sample PHS Assurance format shown on pages 19-26 of 
the PHS Policy and must be submitted by the Field Installation Director 
to the Authorized NASA Official. The Assurance is subject to renewal 
every 5 years.
    (g) Recordkeeping Requirements. (1) Each NASA field installation 
involved in activities using animal subjects shall maintain:
    (i) An Assurance of compliance with PHS Policy and this rule (Sec. 
1232.105 (f));
    (ii) Minutes of ACUC meetings, including records of attendance, 
activities of the committee, and committee deliberations;
    (iii) Records of applications, proposals, and proposed significant 
changes in the care and use of animals and whether ACUC approval was 
given or withheld;
    (iv) Records of semiannual ACUC reports and recommendations 
(including minority views) as forwarded to the Field Installation 
Director;
    (v) Records of AAALAC accreditation; and
    (vi) The Field Installation's Animal Users Guide and Animal Care 
Facility Management Manual. The Field Installation Animal Users Guide 
and Animal Care Facility Management Manual should be revised at 
appropriate intervals.
    (2) All records shall be maintained for at least 3 years; records 
that relate directly to applications, proposals, and proposed 
significant changes in ongoing activities reviewed and approved by the 
ACUC shall be maintained for the

[[Page 199]]

duration of the activity and for an additional 3 years after completion 
of the activity. All records shall be furnished upon request to the 
Authorized NASA Official.
    (h) Reporting Requirements. For each NASA field installation 
involved in activities using animal subjects:
    (1) Statements of ACUC approval of research proposals, ACUC 
evaluation reports of flight experiment proposals and of experiment 
proposals utilizing field installation facilities, and the field 
installation's Assurance of compliance shall be submitted in the manner 
prescribed in Sec. Sec. 1232.104(c) and 1232.105 (b), (c), (d), and 
(f).
    (2) At least once every 12 months, the ACUC, through the Field 
Installation Director, shall report in writing to the Authorized NASA 
Official:
    (i) Any change in the field installation's program or facilities 
that would affect the AAALAC accreditation status;
    (ii) Any change in the description of the field installation's 
program for animal care and use;
    (iii) Any changes in the ACUC membership;
    (iv) Notice of the dates that the ACUC conducted its semiannual 
evaluations of the field installation's program and facilities and 
submitted the evaluations to the Field Installation Director;
    (v) A statement that the field installation has no changes to report 
as specified in Sec. 1232.105(h)(2) (i), (ii), or (iii) of this rule, 
if there are no changes.
    (3) The ACUC, through the Field Installation Director, shall 
promptly provide the Authorized NASA Official with a full explanation of 
the circumstances and actions taken with respect to:
    (i) Any serious or continuing noncompliance with this rule and PHS 
Policy;
    (ii) Any serious deviation from the provisions of the Guide; or
    (iii) Any suspension of an activity by the ACUC.
    (4) Reports filed under Sec. 1232.105 (h) of this rule shall 
include any minority views filed by members of the ACUC.
    (5) A copy of the U.S. Department of Agriculture (USDA) Annual 
Report will be furnished to the Authorized NASA Official.



Sec. 1232.106  Management authority and responsibility.

    (a) Authorized NASA Official. The Authorized NASA Official is the 
NASA Administrator's representative and is responsible for all NASA 
activities involving animal subjects. This individual is responsible for 
implementation of the provisions of this rule and for ensuring that 
agency programs involving animal subjects comply fully with all 
applicable laws, regulations, and guidelines.
    (b) Field Installation Director. The Field Installation Director is 
responsible for and has the authority to:
    (1) Sign the field installation's Assurance, making a commitment on 
behalf of the field installation that the requirements of the PHS Policy 
and this rule will be met in all field installation activities involving 
animal subjects;
    (2) Create and oversee the functioning of the field installation 
ACUC;
    (3) Decide and administer sanctions in cases of noncompliance with 
this rule;
    (4) Fulfill the reporting requirements assigned to this individual 
in Sec. 1232.105(h); and
    (5) Sign the annual USDA report.
    (c) NASA Field Installation(s) ACUC Responsibility. Each NASA Field 
Installation ACUC is responsible to its Field Installation Director for 
the activities described in Sec. Sec. 1232.104(c) and 1232.105 (b), 
(c), (d), (e) and (h).
    (d) Research or Flight Program Manager Responsibility. The Research 
or Flight Program Manager is responsible for ascertaining the presence 
of the required PHS Assurance file number for proposals involving animal 
subjects received from non-NASA institutions, and a statement of ACUC 
review and approval of all NASA and non-NASA proposals involving animal 
subjects. No awards for activities involving animal subjects can be made 
without this documentation [see Sec. Sec. 1232.104 (b) and (d) and 
1232.105(b)].
    (e) NASA Veterinarian(s) Responsibility. NASA veterinarian(s) have 
direct or delegated authority and responsibility for activities 
involving animal subjects at their field installation. Such authority 
and responsibilities shall include recommending approval or disapproval 
of procedures involving

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animal subjects as a member of the ACUC, continual monitoring of these 
activities, surveillance of the health and condition of animal subjects, 
and reporting any observed deviations from approved procedures involving 
animal subjects to the Field Installation Director and the ACUC. In the 
case of deviation from ACUC-approved practices or procedures, the 
veterinarian shall have the authority to immediately halt such 
procedures until they are reviewed and resolved by the ACUC. In cases of 
a conflict concerning animal usage by an investigator that cannot be 
resolved between him/her and the veterinarian, the matter may be brought 
to the attention of the Field Installation ACUC for review and 
recommendation for action as set forth in this rule. Whereas the 
performance of the veterinarian's duties can be delegated to other 
qualified individuals, the ultimate responsibility rests with the 
veterinarian. This responsibility extends not only to the Animal Care 
Facility (ACF), but also to other locations where animal subjects are 
used.
    Other specific areas of responsibility and authority vested in the 
veterinarian are:
    (1) Entry of personnel into the ACF. The veterinarian has the 
responsibility to develop access procedures to the ACF and submit them 
to the ACUC for approval.
    (2) Personnel Training. The veterinarian will participate in the 
training of personnel in the handling of animal subjects and in specimen 
sampling procedures.
    (3) Animal Training. The veterinarian will monitor all schedules and 
procedures involving the training and acclimation of animal subjects.
    (4) Surgery and Surgical Procedures. The veterinarian will monitor 
all surgical procedures and verify that the principles of the Guide with 
regard to aseptic surgery are employed. Post-surgical recovery 
procedures are included. If necessary, training will be provided by the 
veterinarian to bring procedures conducted by investigators to the level 
of these standards.
    (5) Veterinary Medical and Engineering Procedures. The veterinarian 
will monitor all veterinary medical and engineering procedures performed 
on animal subjects and verify their appropriateness. The veterinarian 
will actively participate in identifying and/or establishing the design 
requirements and adequacy of animal facilities for ground and 
spaceflight-related activities.
    (f) NASA Representative to the Interagency Research Animal Committee 
(IRAC). The NASA representative to the IRAC will obtain information of 
all cases in which an institution's Assurance has been revoked by the 
PHS. The NASA IRAC representative will notify NASA ACUC's, Field 
Installation Directors, the Authorized NASA Official, and all 
Headquarters Research and Flight Program Managers so that they can 
determine which NASA awards involving the use of animal subjects are 
affected and can take appropriate sanctions.



Sec. 1232.107  Sanctions.

    (a) Non-NASA Institutions. Principal investigators not employed by 
NASA whose activities are supported by NASA but whose activities using 
animal subjects are restricted to non-NASA facilities shall be subject 
to the control of their institution's ACUC and responsible institutional 
official. Notification of noncompliance with this rule shall be made 
either as described in Sec. 1232.106(f) or by the non-NASA institution 
to the Director of the NASA Field Installation through which the 
activity has been supported and to the Authorized NASA Official. Any 
continued noncompliance may be caused for termination of funding or 
support.
    (b) NASA Field Installations. (1) Inappropriate procedures on animal 
subjects by NASA principal investigators shall be halted by the NASA 
Field Installation Veterinarian or line management and brought to the 
attention of the ACUC if the issue cannot be immediately resolved. The 
ACUC will review the activity and report any noncompliance with this 
rule to the Field Installation Director. Principal investigators not 
employed by NASA, whose activities using animal subjects are performed 
in NASA facilities, aircraft, or spacecraft, are subject to similar 
action. Such noncompliance will be cause

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for sanctions. The principal investigator can contest, in writing, these 
decisions to the ACUC.
    (2) The ACUC as the agent of the Field Installation Director may 
suspend an activity that it previously approved if it determines that 
the activity is not being conducted in accordance with applicable 
provisions of the Animal Welfare Act, the Guide, PHS Policy 
requirements, or this rule.
    (3) Any suspension or termination of approval will include a 
statement of the reasons for the action and will be promptly reported to 
the principal investigator and the appropriate Field Installation 
Director. In the case of investigators from non-NASA institutions, 
notification should be sent to the investigator, the appropriate 
institution, and the Director of the Field Installation through which 
the activity has been supported. If the ACUC suspends an activity 
involving animal subjects, the Field Installation Director in 
consultation with the ACUC shall review the reasons for suspension, take 
appropriate corrective action, and report that action with a full 
explanation to the Authorized NASA Official, NASA Headquarters. If an 
ACUC recommends disapproval suspension, termination, or conditional 
approval of an activity, the principal investigator will be given the 
opportunity to ask for reconsideration of the decision in person and/or 
in writing to the appropriate NASA ACUC.
    (4) If, after notification of the Field Installation Director and an 
opportunity for correction, such deficiencies or deviations remain 
uncorrected, the ACUC will notify (in writing) the Authorized NASA 
Official, NASA Headquarters, who is then responsible for all corrective 
action to be taken.



PART 1240--INVENTIONS AND CONTRIBUTIONS--Table of Contents




      Subpart 1--Awards for Scientific and Technical Contributions

Sec.
1240.100 Purpose.
1240.101 Scope.
1240.102 Definitions
1240.103 Criteria.
1240.104 Applications for awards.
1240.105 Special procedures--NASA and NASA contractor employees.
1240.106 Review and evaluation of contribution.
1240.107 Notification by the Board.
1240.108 Reconsideration.
1240.109 Hearing procedure.
1240.110 Recommendation to the Administrator.
1240.111 Release.
1240.112 Presentation of awards.
1240.113 Financial accounting.
1240.114 Delegation of authority.

    Authority: Section 306 of the National Aeronautics and Space Act of 
1958, as amended (42 U.S.C. 2458), and the Federal Technology Transfer 
Act of 1986, sec. 12, 15 U.S.C. 3710b(1).

    Source: 67 FR 31120, May 9, 2002, unless otherwise noted.



      Subpart 1--Awards for Scientific and Technical Contributions



Sec. 1240.100  Purpose.

    This subpart prescribes procedures for submitting applications for 
monetary awards to the Administrator of NASA for scientific and 
technical contributions which have significant value in the conduct of 
aeronautical and space activities pursuant to 42 U.S.C. 2458, and 
establishes the awards program consistent with the Federal Technology 
Transfer Act of 1986, section 12, 15 U.S.C. 3710b(1).



Sec. 1240.101  Scope.

    This subpart applies to any scientific or technical contribution, 
whether or not patentable, which is determined by the Administrator 
after referral to the Inventions and Contributions Board to have 
significant value in the conduct of aeronautical and space activities 
for which an application for award has been submitted to NASA under 42 
U.S.C. 2458.



Sec. 1240.102  Definitions.

    As used in this subpart:
    (a) Administrator means the Administrator of the National 
Aeronautics and Space Administration.
    (b) Board means the NASA Inventions and Contributions Board.
    (c) Chairperson means the Chairperson of the NASA Inventions and 
Contributions Board.

[[Page 202]]

    (d) Commercial quality refers to computer software that is not in an 
experimental or beta phase of development, that performs in accordance 
with its specifications, and includes documentation describing the 
software's form and function.
    (e) Contract means any contract, agreement, understanding, or other 
arrangement with NASA or another Government Agency on NASA's behalf, 
including any assignment, substitution of parties, or subcontract 
executed or entered into thereunder.
    (f) Contractor means the party who has undertaken to perform work 
under a contract or subcontract.
    (g) Innovation means a mathematical, engineering or scientific 
concept, idea, design, process, or product, reported as new technology 
on NASA Form 1679.
    (h) Innovator means any person listed as a contributor, inventor, or 
author of an innovation.
    (i) Invention includes any act, method, process, machine, 
manufacture, design, or composition of matter, or any new and useful 
improvement thereof, or any variety of plant, which is or may be 
patentable under the patent laws of the United States or any foreign 
country.
    (j) Qualified User means any person that has legally acquired 
computer software and has the right to use it for a legal purpose.
    (k) Verified means passing rigorous testing to ascertain whether the 
functionality claimed in the innovation's documentation is realized.



Sec. 1240.103  Criteria.

    (a) Only those contributions to NASA which have been:
    (1) Used in a NASA program or adopted or sponsored or supported by 
NASA, and
    (2) Found to have significant value in the conduct of aeronautical 
and space activities, will be recommended for award under this subpart.
    (b) In determining the amount, terms, and conditions of any award, 
the following criteria will be considered:
    (1) The value of the contribution to the United States;
    (2) The aggregate amount of any sums which have been expended by the 
applicant for the development of such contribution;
    (3) The amount of any compensation (other than salary received for 
services rendered as an officer or employee of the Government) 
previously received by the applicant for or on account of the use of 
such contributions by the United States; and
    (4) Such other factors as the Administrator shall determine to be 
material.



Sec. 1240.104  Applications for awards.

    (a) Eligibility. Applications for award may be submitted by any 
person including any individual, partnership, corporation, association, 
institution, or other entity.
    (b) Information required. Applications for award should be addressed 
to the Inventions and Contributions Board (herein referred to as the 
Board), National Aeronautics and Space Administration, Washington, DC 
20546-0001, and will contain:
    (1) The name and address of the applicant, the person's relationship 
to the contributor if the contribution is made by one other than the 
applicant, and the names and addresses of any others having information 
as to the value or usage of the contribution;
    (2) A complete written description of the contribution, in the 
English language, using electronic media, accompanied by drawings, 
sketches, diagrams, or photographs illustrating the nature of the 
contribution and the technical and scientific principles upon which it 
is based, any available test or performance data or observations of 
pertinent scientific phenomena, and the aeronautics or space application 
of the contribution;
    (3) The date and manner of any previous submittal of the 
contribution to any other United States Government agency, and the name 
of such agency;
    (4) The aggregate amount of any sums which have been expended by the 
applicant for the development of the contribution;
    (5) The nature and extent of any known use of the contribution by 
the United States and by any agency of the United States Government;
    (6) The amount of any compensation (other than salary received for 
services rendered as an officer or employee of

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the Government) previously received by the applicant for or on account 
of the use of such contribution by the United States;
    (7) Identification of any United States and foreign patents applied 
for or issued relating to the contribution; and
    (8) An agreement to surrender all claims which such applicant may 
have for the use of such contribution by the Government.
    (c) General. (1) Each contribution will be made the subject of a 
separate application in order that each contribution may be evaluated 
individually.
    (2) Material constituting a possible hazard to safety or requiring 
unusual storage facilities should not be submitted, and will not be 
accepted. Models or intricate exhibits demonstrating the contribution 
will not be accepted unless specifically requested by the Board. In 
those few cases where such models or exhibits have been submitted 
pursuant to a request made by the Board, the same will be returned to 
the applicant upon written request from the applicant.
    (3) It is the policy of the Board to use or disclose information 
contained in applications for awards for evaluation purposes only. 
Applications for awards submitted with restrictive legends or statements 
differing from this policy will be treated in accordance with the 
Board's policy.



Sec. 1240.105  Special procedures--NASA and NASA contractor employees.

    (a) A NASA Headquarters office, a NASA field installation, or a NASA 
contractor may submit to the Board an application for an award 
identifying the originator(s) of any scientific or technical 
contribution conceived or developed during the performance of a NASA 
program or contract, and which is considered to be of value in advancing 
the state of knowledge in space or aeronautical activities, whether or 
not the contribution is the subject of a NASA Tech Brief, software 
approved for public release, or of a U.S. patent application.
    (b) The Board will recommend to the Administrator or a designee that 
an initial award of at least $1,000 be granted to a sole inventor, or 
$500 each to joint inventors, upon submittal of NASA Form 1688 by either 
the Associate General Counsel for Intellectual Property, for an 
invention made and reported by a NASA Headquarters employee or an 
employee of a NASA Headquarters contractor, or a patent counsel at a 
NASA field installation for an invention made and reported by an 
employee of that installation or by an employee of an installation 
contractor, has filed a nonprovisional U.S. patent application or that a 
continuation-in-part or divisional patent has been issued. The Board is 
authorized to recommend a supplemental monetary award in an amount that 
will be based on the evaluation of the technical and commercial merits 
of the invention. No additional award will be given for a continuation 
patent application where an initial award was authorized for the parent 
application and this parent application will be or has been abandoned. 
In addition, initial awards will not be granted for provisional 
applications under 35 U.S.C. 111(b) or reissue applications under 35 
U.S.C. 251.
    (c) When the Board receives written notice (NASA Form 1688) that a 
NASA Center has approved for release to qualified users a software 
package based on an innovation made and reported by an employee of NASA 
or a NASA contractor on NASA Form 1679, the Board will recommend to the 
Administrator or designee that an initial award of at least $1,000 be 
granted to a sole innovator, and an award of at least $500 will be 
granted to each originator of the innovation if there is more than one. 
The Board is authorized to recommend a supplemental monetary award in an 
amount that will be based on the evaluation of the technical and 
commercial merits of the innovation. No contribution may receive this 
award unless:
    (1) NASA has an ownership interest in the software; i.e., NASA has 
the unrestricted use of the software in perpetuity at no charge from any 
other entity;
    (2) The software is of commercial quality; i.e., is not in 
experimental or beta phases of development and includes documentation, 
either in paper or electronic formats, describing the software's form 
and function;

[[Page 204]]

    (3) The software has been verified to perform the functions claimed 
in its documentation on the platform for which it was designed without 
harm to the systems or data contained within; and,
    (4) The software has been distributed to qualified users upon the 
written approval for release by Center management.
    (d) Software dissemination awards are not eligible to receive 
selected Tech Brief awards based upon the publication of an announcement 
of availability in ``NASA Tech Briefs.''
    (e) When the Board receives written notice (NASA Form 1688) that a 
NASA Center has approved for publication a selected NASA Tech Brief 
based on an innovation made and reported by an employee of NASA or a 
NASA contractor on NASA Form 1679, the Board will recommend to the 
Administrator or designee that an initial award of at least $350 be 
granted, and an award of at least that amount will be granted to each 
originator of the innovation. The Board is authorized to recommend a 
supplemental monetary award in an amount that will be based on the 
evaluation of the technical and commercial merits of the innovation.
    (f) When a selected NASA Tech Brief has been approved for 
publication, and/or a NASA Center has approved the release of a software 
package, and/or the filing of a U.S. patent application has been 
authorized for the same contribution, the initial awards authorized in 
paragraphs (b), (c), and (e) of this section will be cumulative.
    (g) Initial awards authorized in paragraphs (b), (c), and (e) of 
this section may not exceed a total of $5,000 per category. Such cases, 
wherein a large number of multiple innovators are contributors, must be 
submitted for formal evaluation by the Board on a NASA Form 1329 or 
1329A.
    (h) Awards authorized in paragraphs (a), (b), (c), and (e) of this 
section will not be granted to a contributor who has previously received 
full compensation for, or on account of, the use of such a contribution 
by the United States.
    (i) If a contribution, as first reported and evaluated, is judged 
not to merit a supplemental award, as provided for in paragraphs (a), 
(b), (c), or (e) of this section, or the contribution is later proved to 
be of more significant value, it may be submitted for reevaluation on 
NASA Form 1329A. Responsible NASA and NASA contractor officials are 
encouraged to periodically review such reported contributions, and to 
resubmit them for reconsideration through the same channels as 
originally reported.



Sec. 1240.106  Review and evaluation of contribution.

    (a) A contribution will be initially reviewed by the Board on the 
basis of the material submitted by the applicant under Sec. 
1240.104(b).
    (b) If it is determined that the contribution has been used in a 
NASA program, or adopted or sponsored or supported by NASA, the 
contribution will be evaluated for its significant value in the conduct 
of aeronautical or space activity.
    (c) The Board will recommend an award for such contribution when, 
upon evaluation of its scientific and technical merits, it is determined 
to warrant an award of at least $500.



Sec. 1240.107  Notification by the Board.

    (a) With respect to each completed application where the Board has 
recommended to the Administrator the granting of an award, and the 
Administrator has approved such award, the Board will notify the 
applicant of the amount and terms of the award. In the case of NASA 
employees or employees of NASA contractors, such notification will 
normally be made through the appropriate NASA field installation 
representative.
    (b) Except for applications from NASA employees or employees of NASA 
contractors, where the Board does not propose to recommend to the 
Administrator the granting of an award, a notification will be provided 
which includes a brief statement of the reasons for such decision.



Sec. 1240.108  Reconsideration.

    (a) In those cases where the Board does not recommend an award, the 
applicant may, within such period as the Board may set but in no event 
less

[[Page 205]]

than 30 days from notification, request reconsideration of the Board's 
decision.
    (b) If reconsideration has been requested within the prescribed 
time, the applicant will, within 30 days from the date of the request 
for reconsideration, or within any other time as the Board may set, file 
its statement setting forth the issues, points, authorities, arguments, 
and any additional material on which it relies.
    (c) Upon filing of the reconsideration statement by the applicant, 
the case will be assigned for reconsideration by the Board upon the 
contents of the application, the record, and the reconsideration 
statement submitted by the applicant.
    (d) If after reconsideration, the Board again does not propose to 
recommend the granting of an award, the applicant, after such 
notification by the Board, may request an oral hearing within the time 
set by the Board.
    (e) An oral hearing without reconsideration may be granted upon 
determination of the Chairperson that good cause exists to do so.



Sec. 1240.109  Hearing procedure.

    (a) An Oral hearing held by the Board will be in accordance with the 
following procedures:
    (1) If the applicant requests a hearing within the time set in 
accordance with Sec. 1240.108(d) or (e), the Board will set a place and 
date for such hearing and notify the applicant.
    (2) The applicant may be represented by an attorney or any other 
appropriately designated person.
    (3) Hearings will be open to the public unless the applicant 
requests that a closed hearing be held.
    (4) Hearings may be held before the full membership of the Board or 
before any panel of Board members designated by the Chairperson.
    (5) Hearings will be conducted in an informal manner with the 
objective of providing the applicant with a full opportunity to present 
evidence and arguments in support of the application. Evidence may be 
presented through means of such witnesses, exhibits, and visual aids as 
are arranged for by the applicant. While proceedings will be ex parte, 
members of the Board and its counsel may address questions to witnesses 
called by the applicant, and the Board may, at its option, utilize the 
assistance and testimony of technical advisors or other experts.
    (6) Subject to the provisions of Sec. 1240.104(c)(2), the applicant 
will submit a copy of any exhibit or visual aid utilized unless 
otherwise directed by the Board. The Board may, at its discretion, 
arrange for a written transcript of the proceedings and a copy of such 
transcript will be made available by the recorder for purchase by the 
applicant.
    (7) No funds are available to defray traveling expenses or any other 
cost incurred by the applicant.



Sec. 1240.110  Recommendation to the Administrator.

    Upon a determination by the Board that a contribution merits an 
award, the Board will recommend to the Administrator or a designee the 
terms and conditions of the proposed award, including a specific amount 
and distribution thereof for any multiple contributors. The 
recommendation of the Board to the Administrator or designee will 
reflect the views of the majority of the Board members. Dissenting views 
may be transmitted with the majority opinion.



Sec. 1240.111  Release.

    Under subsection 306(b)(1) of the National Aeronautics and Space Act 
of 1958, as amended, no award will be made to an applicant unless the 
applicant submits a duly executed release, in a form specified by the 
Administrator, of all claims the applicant may have to receive any 
compensation (other than the award recommended) from the United States 
Government for use of the contribution or any element thereof at any 
time by or on behalf of the United States, or by or on behalf of any 
foreign government pursuant to any existing or future treaty or 
agreement with the United States, within the United States, or at any 
other place.



Sec. 1240.112  Presentation of awards.

    (a) Monetary awards and accompanying written acknowledgments to 
employees of NASA will be presented

[[Page 206]]

in a formal ceremony by the appropriate Official-in-Charge at the 
Headquarters Office, or by the Director of the cognizant field 
installation or designee.
    (b) Monetary awards and accompanying written acknowledgments to 
employees of NASA contractors will be forwarded to contractor officials 
for suitable presentation.



Sec. 1240.113  Financial accounting.

    (a) An Award Check Receipt (NHQ DIV Form 622), which accompanies the 
transmittal of each group of award checks from the Board will be dated 
and signed by the responsible NASA Center representative and returned to 
the Board without delay.
    (b) Not later than December 10 of each year, the responsible field 
installation official will submit a report certifying that all award 
checks, which were issued and received by the field installation during 
the year, have been delivered to the proper employees of NASA and 
employees of NASA contractors. In the case of those checks that have not 
been delivered by December 10, the certification report will be 
accompanied by all undelivered checks and a brief explanation of the 
reasons for the failure to make delivery. This annual certification 
report is essential in order to ensure that income and withholding tax 
totals for all awardees are correct and complete at the close of each 
calendar year.



Sec. 1240.114  Delegation of authority.

    (a) The Associate Administrator for Aerospace Technology and the 
Chairperson, Inventions and Contributions Board, are delegated authority 
to execute grants of awards for significant scientific or technical 
contributions not exceeding $2,000 per contributor, when in accordance 
with the recommendation of the Board and in conformity with applicable 
law and regulations.
    (b) The Chairperson, Inventions and Contributions Board, is 
delegated authority to execute grants of initial awards upon the 
decision to file for a U.S. patent application, release software to 
qualified users, and/or upon approval to publish a selected NASA Tech 
Brief.
    (c) No redelegation is authorized except by virtue of succession.
    (d) The Chairperson, Inventions and Contributions Board, will ensure 
that feedback is provided so that the Administrator, through official 
channels, is immediately informed of significant actions, problems, or 
other matters of substance related to the exercise of the authority 
delegated in this section.

                          PART 1241 [RESERVED]



PART 1245--PATENTS AND OTHER INTELLECTUAL PROPERTY RIGHTS--Table of Contents




                  Subpart 1--Patent Waiver Regulations

Sec.
1245.100 Scope.
1245.101 Applicability.
1245.102 Definitions and terms.
1245.103 Policy.
1245.104 Advance waivers.
1245.105 Waiver after reporting inventions.
1245.106 Waiver of foreign rights.
1245.107 Reservations.
1245.108 License to contractor.
1245.109 Assignment of title to NASA.
1245.110 Content of petitions.
1245.111 Submission of petitions.
1245.112 Notice of proposed Board action and reconsideration.
1245.113 Hearing procedure.
1245.114 Findings and recommendations of the Board.
1245.115 Action by the Administrator.
1245.116 Miscellaneous provisions.
1245.117 March-in and waiver revocation procedures.
1245.118 Record of decisions.

Subpart 2 [Reserved]

                 Subpart 3--NASA Foreign Patent Program

1245.300 Scope of subpart.
1245.301 Inventions under NASA contracts.
1245.302 Inventions by NASA employees.
1245.303 Criteria.
1245.304 Procedures.

             Subpart 4--Foreign Patent Licensing Regulations

1245.400 Scope of subpart.
1245.401 Policy.
1245.402 Types of licenses and terms and conditions.
1245.403 Government license.
1245.404 Enforcement of patent rights.

[[Page 207]]

1245.405 Procedures.

Subpart 5--Authority and Delegations to Take Certain Actions Relating to 
             Patents and Other Intellectual Property Rights

1245.500 Scope.
1245.501 General Counsel.
1245.502 Associate General Counsel for Intellectual Property.
1245.503 Patent Counsel of Field Installations.
1245.504 Further redelegation.



                  Subpart 1--Patent Waiver Regulations

    Authority: 42 U.S.C. 2457, 35 U.S.C. 200 et seq.

    Source: 52 FR 43748, Nov. 16, 1987, unless otherwise noted.



Sec. 1245.100  Scope.

    This subpart prescribes regulations for the waiver of rights of the 
Government of the United States to inventions made under NASA contract 
in conformity with section 305 of the National Aeronautics and Space Act 
of 1958, as amended (42 U.S.C. 2457).



Sec. 1245.101  Applicability.

    The provisions of the subpart apply to all inventions made or which 
may be made under conditions enabling the Administrator to determine 
that the rights therein reside in the Government of the United States 
under section 305(a) of the National Aeronautics and Space Act of 1958, 
as amended, 42 U.S.C. 2457(a). The provisions do not apply to inventions 
made under any contract, grant, or cooperative agreement with a 
nonprofit organization or small business firm that are afforded the 
disposition of rights as provided in 35 U.S.C. 200-204 (Pub. L. 96-517, 
94 Stat. 3019, 3020, 3022 and 3023; and Pub. L. 98-620, 98 Stat. 3364-
3367).



Sec. 1245.102  Definitions and terms.

    As used in this subpart:
    (a) Contract means any actual or proposed contract, agreement, 
understanding, or other arrangement with the National Aeronautics and 
Space Administration (NASA) or another Government agency on NASA's 
behalf, including any assignment, substitution of parties, or 
subcontract executed or entered into thereunder, and including NASA 
grants awarded under the authority of 42 U.S.C. 1891-1893.
    (b) Contractor means the party who has undertaken to perform work 
under a contract or subcontract.
    (c) Invention includes any art, method, process, machine, 
manufacture, design, or composition or matter, or any new and useful 
improvement thereof, or any variety of plant, which is or may be 
patentable under the Patent Laws of the United States of America or any 
foreign country.
    (d) Made, when used in relation to any invention, means the 
conception or first actual reduction to practice of such invention.
    (e) Practical application means to manufacture in the case of a 
composition or product, to practice in the case of a process or method, 
or to operate in the case of a machine or system; and, in each case, 
under such conditions as to establish that the invention is being 
utilized and that its benefits are to the extent permitted by law or 
Govenment regulations available to the public on reasonable terms.
    (f) Board means the NASA Inventions and Contributions Board 
established by the Administrator of NASA within the Administration under 
section 305(f) of the National Aeronautics and Space Act of 1958, as 
amended (42 U.S.C. 2457(f)).
    (g) Chairperson means Chairperson of the NASA Inventions and 
Contributions Board.
    (h) Petitioner means a contractor or prospective contractor who 
requests that the Administrator waive rights in an invention or class of 
inventions made or which may be made under a NASA contract. In the case 
of an identified invention, the petitioner may be the inventor(s).
    (i) Government agency includes any executive department, independent 
commission, board, office, agency, administration, authority, Government 
corporation, or other Government establishment of the executive branch 
of the Government of the United States of America.
    (j) Administrator means the Administrator of the National 
Aeronautics and

[[Page 208]]

Space Administration or the Administrator's duly authorized 
representative.



Sec. 1245.103  Policy.

    (a) In implementing the provisions of section 305(f) of the National 
Aeronautics and Space Act of 1958, as amended (42 U.S.C. 2457(f)), and 
in determining when the interests of the United States would be served 
by waiver of all or any part of the rights of the United States in 
inventions made in the performance of work under NASA contracts, the 
Administrator will be guided by the objectives set forth in the National 
Aeronautics and Space Act of 1958, as amended (42 U.S.C. 2451-2477) and 
by the basic policy of the Presidential Memorandum and Statement of 
Government Patent Policy to the Heads of the Executive Departments and 
agencies dated February 18, 1983. Among the most important goals are to 
provide incentives to foster inventiveness and encourage the reporting 
of inventions made under NASA contracts, to provide for the widest 
practicable dissemination of new technology resulting from NASA 
programs, and to promote early utilization, expeditious development, and 
continued availability of this new technology for commercial purposes 
and the public benefit. In applying this regulation, both the need for 
incentives to draw forth private initiatives and the need to promote 
healthy competition in industry must be weighed.
    (b) Several different situations arise when waiver of all or any 
part of the rights of the United States may be requested and are 
prescribed in Sec. Sec. 1245.104-1245.106. Under Sec. 1245.104, 
advance waiver of rights to any or all of the inventions which may be 
made under a contract may be requested prior to the execution of the 
contract, or within 30 days after execution of the contract. Waiver of 
rights to an identified invention made and reported under a contract are 
to be requested under Sec. 1245.105, and may be requested under this 
provision even though a request under Sec. 1245.104 was not made, or if 
made, was not granted. Waiver of foreign rights under Sec. 1245.106 may 
be requested concurrently with domestic rights under Sec. 1245.104 or 
Sec. 1245.105, or may be made independently.
    (c) With respect to inventions which may be or are made or conceived 
in the course of or under contracts for research, development or 
demonstration work awarded by NASA on behalf of the Department of Energy 
(DOE) or in support of a DOE program, on a reimbursable basis pursuant 
to agreement between DOE and NASA, the waiver policy, regulations, and 
procedures of DOE will be applied. NASA will normally grant waiver of 
rights to inventions made under contracts awarded by NASA on behalf of, 
or in support of, programs funded by another Government agency, unless 
the funding agency recommends and justifies denial of the waiver. See 
Sec. Sec. 1245.110(c) and 1245.111(b).



Sec. 1245.104  Advance waivers.

    (a) The provisions of this section apply to petitions for waiver of 
domestic rights to any or all of the inventions which may be made under 
a contract.
    (b) The NASA Inventions and Contributions Board normally will 
recommend grant of a request for advance waiver of domestic rights 
submitted prior to execution of contract or within 30 days after 
execution of the contract unless the Board finds that the interests of 
the United States will be better served by restricting or eliminating 
all or part of the rights of the contractor in one or more of the 
following situations:
    (1) When the contractor is not located in the United States or does 
not have a place of business in the United States or is subject to the 
control of a foreign government;
    (2) When a determination has been made by Government authority which 
is authorized by statute or Executive order to conduct foreign 
intelligence or counter-intelligence activities that the restriction or 
elimination of the right to retain title to any inventions made in the 
performance of work under the contract is necessary to protect the 
security of such activities; or
    (3) Where the Board finds that exceptional circumstances exist, such 
that restriction or elimination of the right

[[Page 209]]

to retain title will better promote one or more of the following 
objectives:
    (i) Promoting the utilization of inventions arising from federally 
supported research and development;
    (ii) Encouraging maximum participation of industry in federally-
supported research and development;
    (iii) Ensuring that inventions are used in a manner to promote free 
competition and enterprise;
    (iv) Promoting the commercialization and public availability of 
inventions made in the United States by United States industry and 
labor; and
    (v) Ensuring that the Government obtains sufficient rights in 
federally-supported inventions to meet the needs of the Government and 
protect the public against nonuse or unreasonable use of inventions.
    (c)(1) An advance waiver, when granted, will be subject to the 
reservations set forth in Sec. 1245.107. Normally, the reservations of 
Sec. 1245.107(a), License to the Government, and Sec. 1245.107(b), 
March-in rights, will apply. However, should one or more of the 
situations set forth in paragraphs (b)(1) through (b)(3), of this 
section exist, rather than denying the advance waiver request, the Board 
may recommend restricting or eliminating only part of the rights of the 
contractor to the extent necessary to address the particular situation, 
consistent with the policy and goals of Sec. 1245.103. In that event, 
the waiver grant will be subject to additional reservations as provided 
for in Sec. 1245.107(c).
    (2) An advance waiver, when granted, will apply only to inventions 
reported to NASA under the applicable terms of the contract and a 
designation made within 6 months of the time of reporting (or a 
reasonable time thereafter permitted for good cause shown) that the 
contractor elects title to the invention and intends to file or has 
filed a U.S. patent application. Such election will be made by 
notification in writing to the patent representative designated in the 
contract. Title to all other inventions made under the contract are 
subject to section 305(a) of the National Aeronautics and Space Act of 
1958, as amended, 42 U.S.C. 2457(a). The granting of the advance waiver 
does not otherwise relieve a contractor of any of the invention 
identification or reporting requirements set forth in the applicable 
patent rights clause in the contract.
    (3) The waiver shall extend to the invention claimed in any patent 
application filed on the reported invention, including any subsequent 
divisional or continuation application thereof, provided the claims of 
the subsequent application do not substantially change the scope of the 
reported invention.
    (d) When a petition for waiver is submitted under paragraph (b) of 
this section, prior to contract execution, it will be processed 
expeditiously so that a decision on the petition may be reached prior to 
execution of the contract. However, if there is insufficient time or 
insufficient information is presented, or for other reasons which do not 
permit a recommendation to be made without unduly delaying execution of 
the contract, the Board will inform the contracting officer that no 
recommendation has been made and the reasons therefor. The contracting 
officer will then notify the petitioner of the Board's action.
    (e) After notification by the contracting officer under paragraph 
(d) of this section, the petitioner may, upon its execution of the 
contract, or within 30 days, request the Board to reconsider the matter 
under paragraph (b) of this section either on the record or with any 
additional statements submitted in the subpart of the original petition.
    (f) A waiver granted pursuant to a petition submitted under this 
section shall extend to any contract changes, modifications, or 
supplemental agreements, so long as the purpose of the contract or the 
scope of work to be performed is not substantially changed.



Sec. 1245.105  Waiver after reporting inventions.

    (a) The provisions of this section apply to petitions for waiver of 
domestic rights to identified inventions which have been reported to 
NASA and to which a waiver of rights has not been granted pursuant to 
Sec. 1245.104.
    (b)(1) When an individual identified invention has been reported to 
NASA under the applicable terms of the contract and waiver of rights has 
not been

[[Page 210]]

granted under Sec. 1245.104, the Board normally will recommend grant of 
a request for waiver of domestic rights to such invention if the request 
is received within 8 months of first disclosure to NASA (or such longer 
period that the Board may permit for good cause shown), unless the Board 
finds that one or more of the situations set forth in Sec. 
1245.104(b)(3)(i) through (v) exist. When granted, the waiver will be 
subject to the reservations set forth in Sec. 1245.107 in the same 
manner as discussed in Sec. 1245.104(c)(1).
    (2) The waiver shall extend to the invention claimed in the patent 
application filed on the reported invention, including any subsequent 
divisional or continuation application thereof, provided the claims of 
the subsequent application do not substantially change the scope of the 
reported invention.



Sec. 1245.106  Waiver of foreign rights.

    (a) The Board will consider the waiver of foreign rights in any 
designated country concurrently with the waiver of domestic rights when 
so requested under Sec. 1245.104 or Sec. 1245.105.
    (b) The Board will also consider a separate request for foreign 
rights for an individual identified invention in any designated country 
if a request was not made pursuant to paragraph (a) of this section, or 
for countries not designated pursuant to paragraph (a) of this section.
    (c) Waiver of foreign rights will normally be granted under 
paragraph (a) or paragraph (b) of this section in any designated country 
unless; (1) The Board finds that the economic interests of the United 
States will not be served thereby; or unless (2) in the case of an 
individual identified invention under paragraph (b) of this section, 
NASA has determined, prior to the request, to file a patent application 
in the designated country.
    (d) If, subsequent to the granting of the petition for foreign 
rights, the petitioner requests and designates additional countries in 
which it wishes to secure patents, the Chairperson may grant such 
request, in whole or in part, without further action by the Board.



Sec. 1245.107  Reservations.

    (a) License to the Government. Any invention for which waiver of 
domestic or foreign rights has been granted under this subpart shall be 
subject to the reservation by the Administrator of an irrevocable, 
nonexclusive, nontransferable, royalty-free license for the practice of 
the invention throughout the world by or on behalf of the United States 
or any foreign government pursuant to any treaty or agreement with the 
United States.
    (b) March-in rights. For any invention for which waiver of rights 
has been granted under this subpart, NASA has the right in accordance 
with 35 U.S.C. 203 and 210, and with the procedures set forth in Sec. 
1245.117 and 37 CFR 401.6, to require the contractor, an assignee, or 
exclusive licensee of the invention to grant a nonexclusive, partially 
exclusive, or exclusive license in any field of use to a responsible 
applicant or applicants, upon terms that are reasonable under the 
circumstances, and if the contractor, assignee, or exclusive licensee 
refuses such a request, NASA has the right to grant such a license 
itself if NASA determines that:
    (1) Such action is necessary because the contractor or assignee has 
not taken, or is not expected to take within a reasonable time, 
effective steps to achieve practical application of the invention in 
such field of use;
    (2) Such action is necessary to alleviate health or safety needs 
which are not reasonably satisfied by the contractor, assignee, or their 
licensees;
    (3) Such action is necessary to meet requirements for public use 
specified by Federal regulations and such requirements are not 
reasonably satisfied by the contractor, assignee, or licensees; or
    (4) Such action is necessary because the agreement required by the 
``Preference for United States industry'' has not been obtained or 
waived or because a licensee of the exclusive right to use or sell any 
invention in the United States is in breach of such agreement.
    (c) Additional reservations. In the event one or more of the 
situations set forth in Sec. 1245.104 (b)(1) through (b)(3) exist, the 
Board may determine to recommend partial grant of the waiver request 
(rather than denial) by making

[[Page 211]]

the grant subject to additional reservations (than those set forth in 
(a) and (b) of this section) to the extent necessary to address the 
particular situation. Such additional reservations may include, but not 
be limited to, field-of-use or terrestrial-use limitations, or additions 
to the march-in rights.



Sec. 1245.108  License to contractor.

    (a) Each contractor reporting an invention is granted a revocable, 
nonexclusive, royalty-free license in each patent application filed in 
any country on the invention and in any resulting patent in which the 
Government acquires title. The license extends to the contractor's 
domestic subsidiaries and affiliates, if any, within the corporate 
structure of which the contractor is a party and includes the right to 
grant sublicenses of the same scope to the extent the contractor was 
legally obligated to do so at the time the contract was awarded. The 
license and right is transferable only with the approval of the 
Administrator except when transferred to the successor of that part of 
the contractor's business to which the invention pertains.
    (b) The contractor's domestic license may be revoked or modified by 
the Administrator to the extent necessary to achieve expeditious 
practical application of the invention pursuant to an application for an 
exclusive license submitted in accordance with the Licensing of NASA 
Inventions (14 CFR 1245.2). This license will not be revoked in that 
field of use and/or the geographical areas in which the contractor has 
achieved practical application and continues to make the benefits of the 
invention available to the public on reasonable terms. The license in 
any foreign country may be revoked or modified at the discretion of the 
Administrator to the extent the contractor, its licensees, or its 
domestic subsidiaries or affiliates have failed to achieve practical 
application in that foreign country.
    (c) Before revocation or modification of the license, the contractor 
will be provided a written notice of the Administrator's intention to 
revoke or modify the license, and the contractor will be allowed 30 days 
(or any other time as may be allowed by the Administrator for good cause 
shown by the contractor) after the notice to show cause why the license 
should not be revoked or modified. The contractor shall have the right 
to appeal, under the Licensing of NASA Inventions (14 CFR 1245.2), any 
decision concerning the revocation or modification of its license.



Sec. 1245.109  Assignment of title to NASA.

    (a) The instrument of waiver set forth in Sec. 1245.115(c) shall be 
voided by NASA with respect to the domestic title to any invention for 
which a patent application has not been filed within 1 year (or a 
reasonable time thereafter for good cause shown) from notification to 
NASA of election of title, as required by Sec. 1245.104(c)(2), for an 
advanced waiver pursuant to Sec. 1245.104, or within 1 year from the 
granting of a waiver for an individual invention granted pursuant to 
Sec. 1245.105.
    (b) The instrument of waiver set forth in Sec. 1245.115(c) shall be 
voided by NASA with respect to title in any foreign country for which 
waiver has been granted pursuant to Sec. 1245.106, if a patent 
application has not been filed in that country (or in the European 
Patent Office or under the Patent Cooperation Treaty and that country 
designated) within either 10 months (or a reasonable time thereafter for 
good cause shown) from the date a corresponding U.S. patent application 
has been filed or 6 months (or a reasonable time thereafter for good 
cause shown) from the date a license is granted by the Commissioner of 
Patents and Trademarks to file foreign patent applications where such 
filing has been prohibited by a Secrecy Order.
    (c) In any country in which the waiver recipient decides not to 
continue prosecution of any application, to pay maintenance fees on, or 
defend in reexamination or opposition proceedings on a patent on a 
waived invention, the waiver recipient shall notify the patent 
representative within sufficient time for NASA to continue prosecution, 
pay the maintenance fee or defend the reexamination or opposition, and 
upon written request, convey title to NASA and execute all papers 
necessary for NASA to proceed with the appropriate action.

[[Page 212]]



Sec. 1245.110  Content of petitions.

    (a) Each request for waiver of domestic or foreign rights under 
Sec. 1245.104, Sec. 1245.105, or Sec. 1245.106 shall be by petition 
to the Administrator and shall include:
    (1) An identification of the petitioner, its place of business, and 
address;
    (2) If the petitioner is represented by counsel, the name, address, 
and telephone number of the counsel;
    (3) A citation to the section (Sec. 1245.104, Sec. 1245.105, or 
Sec. 1245.106) under which the petition is submitted, the nature and 
extent of the rights requested, and a positive statement that waiver of 
rights under the cited section is being requested;
    (4) If the petitioner is an employee inventor of the contractor, a 
statement from the contractor that the contractor does not object to 
this petition.
    (5) Information identifying the proposed contract or resulting 
contract, if any;
    (6) A designation of the country or countries, the United States of 
America and/or foreign, in which waiver of title is requested;
    (7) A copy of the invention disclosure if the request is for an 
individual identified invention (under Sec. 1245.105);
    (8) The name, address, and telephone number of the party with whom 
the Board is to communicate when the request is acted upon;
    (9) Whether the petitioner is an entity of or under the control of a 
foreign government;
    (10) The signature of the petitioner or its authorized 
representative; and
    (11) The date of the petition.
    (b) No specific forms need be used. Requests for advanced waiver 
should, preferably, be included with the proposal, but in any event in 
advance of negotiations.
    (c) Petitions for waiver under contracts funded by another agency. 
The content of the petitions for waiver of title to inventions made 
under contracts awarded by NASA on behalf of the Department of Energy 
under Sec. 1245.103(c) shall follow the procedures and form prescribed 
by and shall be acted on by that agency. Petitions under contracts 
awarded by NASA on behalf of other agencies will be coordinated with the 
agency before action is taken by the Board.



Sec. 1245.111  Submission of petitions.

    (a) Petitions for advance waiver of domestic rights under Sec. 
1245.104 or for advance waiver of foreign rights under Sec. 1245.106 
presented prior to contract execution, must be submitted to the 
contracting officer. Any petition submitted by a prospective contractor 
and selected for negotiation of a contract will be processed and 
forwarded to the Board for consideration. All other petitions will be 
submitted to the patent representative designated in the contract for 
processing prior to forwarding to the Board.
    (b) A copy of any waiver petitions submitted under Sec. 1245.103(c) 
should be forwarded to the appropriate NASA field installation patent 
counsel, if not supplied earlier, for (1) transmittal to the Department 
of Energy for processing by that agency, or (2) coordination with other 
agencies, as applicable.



Sec. 1245.112  Notice of proposed Board action and reconsideration.

    (a) Notice. Except as provided by Sec. 1245.104(d), the Board will 
notify the petitioner, through the contracting officer, with respect to 
petitions for advance waiver prior to contract execution, and directly 
to the petitioner for all other petitions:
    (1) Whether it proposes to recommend to the Administrator that the 
petition be:
    (i) Granted in the extent requested;
    (ii) Granted in an extent different from that requested; or
    (iii) Denied.
    (2) Of the reasons for any recommended action adverse to or 
different from the waiver of rights requested by the petitioner.
    (b) Request for reconsideration and statements required. (1) If, 
under paragraph (a) of this section, the Board notifies the petitioner 
that the Board proposes to recommend action adverse to or different from 
the waiver requested, the petitioner may, within the period as the Board 
may set, but not less than 15 days from the notification, request 
reconsideration by the Board.
    (2) If reconsideration has been requested within the prescribed 
time, the

[[Page 213]]

petitioner shall, within 30 days from the date of the request for 
reconsideration, or within any other time as the Board may set, file its 
statement setting forth the points, authorities, arguments, and any 
additional material on which it relies.
    (3) Upon filing of the reconsideration statement by the petitioner, 
the petition will be assigned for reconsideration by the Board upon the 
contents of the petition, the record, and the reconsideration statement 
submitted by the petitioner.
    (4) The Board, after its reconsideration, will promptly notify the 
petitioner of its proposed recommendation to the Administrator. If the 
Board's proposed action is adverse to, or different from, the waiver 
requested, the petitioner may request an oral hearing within the time as 
the Board has set.



Sec. 1245.113  Hearing procedure.

    (a) If the petitioner requests an oral hearing within the time set, 
under Sec. 1245.112(b)(4), the Board shall set the time and place for 
the hearing and shall notify the petitioner.
    (b) Oral hearings held by the Board shall be open to the public and 
shall be held in accordance with the following procedures:
    (1) Oral hearings shall be conducted in an informal manner, with the 
objective of providing the petitioner with a full opportunity to present 
facts and arguments in support of the petition. Evidence may be 
presented through means of witnesses, exhibits, and visual aids as are 
arranged for by the petitioner. Petitioner may be represented by any 
person including its attorney. While proceedings will be ex parte, 
members of the Board and its counsel may address questions to witnesses 
called by the petitioner, and the Board may, at its option, enlist the 
aid of technical advisors or expert witnesses. Any person present at the 
hearing may make a statement for the record.
    (2) A transcript or equivalent record of the proceeding shall be 
arranged for by the Board. The petitioner shall submit for the record a 
copy of any exhibit or visual aid utilized during the hearing.



Sec. 1245.114  Findings and recommendations of the Board.

    (a) Findings of the Board. The Board shall consider the petition, 
the NASA contract, if relevant, the goals cited in Sec. 1245.103(a), 
the effect of the waiver on the objectives of the related NASA programs, 
and any other available facts and information presented to the Board by 
an interested party. The Board shall document its findings.
    (b) Recommendation of the Board. (1) Except as provided in Sec. 
1245.104(d), after making the findings of fact, the Board shall 
formulate its proposed recommendation to the Administrator as to the 
grant of waiver as requested, the grant of waiver upon terms other than 
as requested, or denial of waiver.
    (2) If the Board proposes to recommend, initially or upon 
reconsideration or after oral hearing, that the petition be granted in 
the extent requested or, in other cases, where the petitioner does not 
request reconsideration or a hearing during the period set for the 
action or informs the Board that the action will not be requested, or 
fails to file the required statements within the prescribed time, the 
Board shall transmit the petition, a summary record of hearing 
proceedings, if applicable, its findings of fact, and its recommendation 
to the Administrator.



Sec. 1245.115  Action by the Administrator.

    (a) After receiving the transmittal from the Board, the 
Administrator shall determine, in accordance with the policy of Sec. 
1245.103, whether or not to grant any petition for waiver of rights to 
the petitioner.
    (b) In the event of denial of the petition by the Administrator, a 
written notice of such denial will be promptly transmitted by the Board 
to the petitioner. The written notice will be accompanied with a 
statement of the grounds for denial.
    (c) If the waiver is granted by the Administrator, the petitioner 
shall be sent for execution, an instrument of waiver confirmatory of the 
conditions and reservations of the waiver grant. The petitioner shall 
promptly return the executed copy of the instrument of waiver to the 
Chairperson.

[[Page 214]]



Sec. 1245.116  Miscellaneous provisions.

    (a) Filing of patent applications and reimbursement of costs. In 
order to protect the interests of the Government and the petitioner in 
inventions, a petitioner may file United States patent applications for 
such inventions prior to the Administrator's determination on a petition 
for waiver. If an application on an identified invention is filed during 
the pendency of the petition, or within 60 days prior to the receipt of 
a petition, NASA will reimburse the petitioner for any reasonable costs 
of the filing and patent prosecution that may have occurred, provided:
    (1) Similar patent filing and prosecution costs are not normally 
reimbursed to the petitioner as direct or indirect costs chargeable to 
the Government contracts;
    (2) The petition is ultimately denied with respect to domestic 
rights, or with respect to foreign and domestic rights, if both are 
requested, and
    (3) Prior to reimbursement, petitioner assigns the application to 
the United States of America as represented by the Administrator of the 
National Aeronautics and Space Administration.
    (b) Statement of Government rights. The waiver recipient shall 
include, within the specification of any United States patent 
application and any patent issuing thereon for a waived invention, the 
following statement:

    The invention described herein was made in the performance of work 
under NASA Contract No. ------, and is subject to the provisions of 
Section 305 of the National Aeronautics and Space Act of 1958, as 
amended (42 U.S.C. 2457).

    (c) License to the Government. The waiver recipient shall return to 
NASA a duly executed and approved license to the Government (which will 
be prepared by the Government) fully confirming of all the rights, 
domestic and foreign, to which the Government is entitled.
    (d) Patent filing and issuance information. The waiver recipient 
shall furnish to either the Chairperson or the patent representative, 
the filing date, serial number and title, and upon request, a copy of 
any domestic or foreign patent application including an English language 
version if filed in a language other than English, and a copy of the 
patent or patent number and issue date, for any waived invention.
    (e) Transfer of rights. The waiver recipient shall notify the 
Chairperson prior to any transfer of principal rights in any waived 
invention to any party. Such transfer shall be subject to all rights 
reserved by the Government, and all obligations of the waiver recipient, 
as set forth in this subpart.
    (f) Utilization reports. (1) The waiver recipient shall provide to 
the Chairperson upon request, and no more frequently than annually, 
reports on the utilization of a waived invention or on efforts at 
obtaining such utilization being made by the waiver recipient or its 
licensees or assigns. Such reports shall include information regarding 
the status of the development, date of first commercial sale or use, and 
such other data and information as the Chairperson may reasonably 
specify. No utilization reports need be submitted after the term of the 
patent.
    (2) Such reports on the utilization of a waived invention, as well 
as information on the utilization or efforts at obtaining utilization 
obtained as part of a march-in proceeding under Sec. 1245.117, shall be 
treated by NASA as commercial and financial information obtained from a 
person and privileged and confidential and not subject to disclosure 
under 5 U.S.C. 552.
    (g) Communications. Unless otherwise specifically set forth in this 
subpart, all communications relating to waived inventions, and all 
information and documents required to be submitted to NASA in this 
subpart, shall be furnished to the patent representative designated in 
the contract under which the waived invention was made.

(Recordkeeping and reporting requirements contained in paragraph (f) 
were approved by the Office of Management and Budget under control 
number 2700-0050)



Sec. 1245.117  March-in and waiver revocation procedures.

    (a) The exercise of march-in procedures shall be governed by 35 
U.S.C. 203 and by the applicable provisions of 37 CFR 401.6, entitled 
``Exercise of march-

[[Page 215]]

in rights for inventions made by nonprofit organizations and small 
business firms.''
    (b) Whenever NASA receives information that it believes might 
warrant the exercise of march-in rights, before initiating any march-in 
proceeding, it shall notify the waiver recipient in writing of the 
information and request informal written or oral comments from the 
waiver recipient as well as information relevant to the matter. In the 
absence of any comments from the waiver recipient within 30 days, NASA 
may, at its discretion, proceed with the procedures set forth in 37 CFR 
401.6. If a comment is received within 30 days, or later if NASA has not 
initiated the procedures, then NASA shall, within 60 days after it 
receives the comment, either initiate the procedures or notify the 
waiver recipient, in writing, that it will not pursue march-in rights on 
the basis of the available information.
    (c) If march-in procedures are to be initiated, the Administrator of 
NASA, or designee, shall undertake or refer the matter for fact finding 
to the NASA Board of Contract Appeals (BCA) and its Chairperson.
    (d) Fact-finding shall be conducted by the NASA BCA and its 
Chairperson in accordance with its procedures that are consistent with 
the procedures set forth in 37 CFR 401.6. Any portion of the march-in 
proceeding, including a fact-finding hearing that involves testimony or 
evidence relating to the utilization or efforts at obtaining utilization 
that are being made by the waiver recipient, its assignee, or licensees 
shall be closed to the public, including potential licensees. In 
accordance with 35 U.S.C. 202(c)(5), NASA shall not disclose any such 
information obtained during a march-in proceeding to persons outside the 
Government except when such release is authorized by the waiver 
recipient (assignee or licensee).
    (e) The preparation of written findings of fact and recommended 
determination by the Chairperson of the NASA BCA and the determination 
by the Administrator, or designee, of NASA shall be in accordance with 
37 CFR 401.6.
    (f) NASA may, at any time, terminate a march-in proceeding if it is 
satisfied that it does not wish to exercise march-in rights.



Sec. 1245.118  Record of decisions.

    The findings of fact and recommendations made to the Administrator 
by the Board with respect to each petition for waiver shall be recorded 
by the Board and be available to the public.

Subpart 2 [Reserved]



                 Subpart 3--NASA Foreign Patent Program

    Authority: 42 U.S.C. 2457(h) and Executive Orders 9865 and 10096.

    Source: 30 FR 1844, Feb. 10, 1965, unless otherwise noted.



Sec. 1245.300  Scope of subpart.

    This subpart establishes policy, criteria, and procedures concerning 
the NASA Foreign Patent Program.



Sec. 1245.301  Inventions under NASA contracts.

    (a) Pursuant to Sec. 1245.113, NASA has facilitated the filing of 
foreign patent applications by contractors by providing for the granting 
of a waiver of title to a contractor to any identified invention in 
countries other than the United States in the event the Administrator of 
NASA does not desire to file a patent application covering the invention 
in such countries. However, any such waiver is subject to the 
reservation by the Administrator of the license required to be retained 
by NASA under section 305(f) of the National Aeronautics and Space Act 
of 1958 (42 U.S.C. 2457(f)).
    (b) Conversely, where the principal rights in an invention made 
under a NASA contract remain in the contractor by virtue of waiver, 
Sec. 1245.19(a)(5) provides that the contractor, upon written request, 
will convey to the Administrator of NASA the entire right, title, and 
interest in the invention in any foreign country in which the contractor 
has elected not to file a patent application.
    (c) With respect to inventions in which NASA has acquired and 
retained the principal rights, NASA will file

[[Page 216]]

patent applications in countries other than the United States on 
inventions selected in accordance with the criteria set forth in Sec. 
1245.303.



Sec. 1245.302  Inventions by NASA employees.

    (a) The foreign rights of NASA and of the NASA employee making an 
invention are determinable in accordance with Executive Orders 9865 and 
10096 and Government Patent Board Administrative Order No. 6 issued 
pursuant thereto.
    (b) Where NASA acquires an assignment of the domestic rights in an 
invention made by a NASA employee, NASA will also obtain an option to 
acquire the foreign rights, including the right to file foreign patent 
applications on the invention.
    (c) Where NASA is entitled to only a governmental license in the 
invention, the principal foreign rights in the invention are retained by 
the employee unless he agrees in writing to assign such rights to NASA.



Sec. 1245.303  Criteria.

    The following categories of inventions will be considered for the 
filing of patent applications by NASA in countries other than the United 
States:
    (a) Inventions which may be utilized abroad in governmental programs 
of the United States.
    (b) Inventions which may be exploited abroad in the public interest 
by license to U.S. nationals or others.
    (c) Inventions which may be utilized in applications type 
satellites, such as communications and meteorological satellites.
    (d) Inventions considered to be basic discoveries or of major 
significance in an art.
    (e) Inventions in fields which directly concern the public health or 
public welfare.



Sec. 1245.304  Procedures.

    (a) The patent counsel at each NASA field installation will review 
all invention disclosures at the time of docketing and will expedite the 
processing and preparation of a U.S. patent application, if justified, 
on those inventions which appear to fall within the criteria set forth 
in Sec. 1245.303. The patent counsel will make a recommendation as to 
whether or not foreign patent coverage appears justified at the time of 
assigning a priority evaluation to a disclosed invention.
    (b) Preparation and filing of patent applications in foreign 
countries will be subject to approval of the Assistant General Counsel 
for Patent Matters, NASA Headquarters.
    (c) The Office of Assistant General Counsel for Patent Matters will 
budget for and administer the filing of all patent applications in 
countries other than the United States.
    (d) Coordination with other interested NASA offices will be 
undertaken by the Assistant General Counsel for Patent Matters.



             Subpart 4--Foreign Patent Licensing Regulations

    Authority: 42 U.S.C. 2457(g) and (h).

    Source: 31 FR 10958, Aug. 18, 1966, unless otherwise noted.



Sec. 1245.400  Scope of subpart.

    (a) The subpart establishes the policy, terms, conditions, and 
procedures under which NASA-owned foreign patents and patent 
applications may be licensed.
    (b) The provisions of this subpart apply to all NASA-owned patents 
granted in countries other than the United States and to NASA-owned 
patent applications pending in such countries and supplement the 
provisions of subpart 2 of this part for foreign patent licensing.



Sec. 1245.401  Policy.

    The foreign licensing program of the National Aeronautics and Space 
Administration serves to promote and utilize foreign patent rights 
vested in the Administration. The objectives of this program are to 
further the interests of United States industry in foreign commerce, to 
enhance the economic interests of the United States and to advance the 
international relationships of the United States.

[[Page 217]]



Sec. 1245.402  Types of licenses and terms and conditions.

    Licenses will be individually negotiated and may be granted to any 
applicant, foreign or domestic, on a nonexclusive or exclusive basis for 
royalties or other considerations and on such other terms and conditions 
as are deemed appropriate to the interests of the United States. 
Preference in the granting of foreign license rights will be shown to 
those applicants who have previously been granted a license under the 
corresponding U.S. patent or patent application.



Sec. 1245.403  Government license.

    There will be reserved from each exclusive license an irrevocable, 
nonexclusive, nontransferable, royalty-free license for the practice of 
such invention throughout the world by or on behalf of the United States 
or any foreign government pursuant to any existing or future treaty or 
agreement with the United States.



Sec. 1245.404  Enforcement of patent rights.

    An exclusive licensee will be authorized to enforce the licensed 
patent and to sue infringers of the patent at its own expense.



Sec. 1245.405  Procedures.

    (a) NASA will publish in the United States, and elsewhere as may be 
appropriate, lists of NASA-owned foreign patents or patent applications 
available for licensing.
    (b) NASA will also furnish written notice of the availability for 
licensing of NASA-owned foreign patents or patent applications to any 
licensee under the corresponding U.S. patent or patent application.
    (c) Applications for license should be addressed to the 
Administrator, National Aeronautics and Space Administration, 
Washington, DC 20456. The application must fully identify the patent or 
patent application, and state the type of license requested together 
with proposed terms and conditions thereof.
    (d) The conduct of negotiations with prospective licensees will be 
the responsibility of the General Counsel, NASA. In the conduct of such 
negotiations, due regard shall be had for the possible interests of NASA 
program and staff offices, and their coordination will be obtained as 
deemed appropriate.
    (e) NASA will publish notice in the Federal Register, and elsewhere 
as may be appropriate, of its intention to grant an exclusive license 
under an identified patent or patent application. An exclusive license 
will not be granted until the expiration of 60 days from the date of 
notice in order to provide a suitable time interval for interested 
persons or other Government agencies to interpose comment or objection.
    (f) All licenses shall become effective upon the written acceptance 
by the licensee of a license instrument specifying the type of license 
and terms and conditions thereof.



Subpart 5--Authority and Delegations to Take Certain Actions Relating to 
             Patents and Other Intellectual Property Rights

    Authority: 42 U.S.C. 2473, 2457; 14 CFR 1204.506.

    Source: 43 FR 34122, Aug. 3, 1978, unless otherwise noted.



Sec. 1245.500  Scope.

    This subpart 5 sets forth the authority and delegations relating to 
intellectual property rights, and the administration of the NASA patent 
program.



Sec. 1245.501  General Counsel.

    The General Counsel administers the NASA patent program and is 
delegated authority to take the following specific actions related to 
intellectual property, including patent, copyright, trademark, and 
related matters:
    (a) Determination of rights. (1) To execute notifications of the 
Administrator's determinations made pursuant to section 305(a) of the 
National Aeronautics and Space Act of 1958, as amended;
    (2) To make determinations, under Executive Order 10096 of January 
23, 1950, as amended, of the respective rights of the Government and of 
the inventor in and to inventions made by employees under the 
adminstrative jurisdiction of the National Aeronautics and Space 
Administration, and to appoint a liaison officer to deal with the

[[Page 218]]

Commissioner of Patents in such matters pursuant to 37 CFR 100.10, 
``Administration of a Uniform Patent Policy With Respect to the Domestic 
Rights in Inventions Made by Government Employees'';
    (b) Powers of attorney. To appoint and/or revoke principal attorneys 
and to execute necessary powers of attorney for the purpose of filing 
and prosecuting patent applications in which the United States, as 
represented by the Administrator, has an interest by way of either title 
or license;
    (c) Application papers and statements. To receive patent 
applications, documents, and statements transmitted to the Administrator 
pursuant to section 305(c) of the National Aeronautics and Space Act of 
1958, as amended;
    (d) Acceptance of licenses and assignments. To accept on behalf of 
the United States licenses under, assignments of, and other rights in 
inventions, patents, and applications for patents;
    (e) Secrecy orders. To exercise all powers of the Administrator with 
respect to secrecy orders in patent cases and foreign filing under 35 
U.S.C. 181 et seq.;
    (f) Certifications. To exercise the authority of the Administrator 
with respect to certifications in support of requests for extensions of 
time under 35 U.S.C. 267;
    (g) Foreign patent program. To exercise the authority of the 
Administrator in taking all necessary action to obtain and maintain 
patents in foreign countries, including the execution of instruments 
necessary for filing, prosecution, and maintenance of foreign 
applications and patents;
    (h) Authority under section 305(d) and (e). To represent the 
Administrator and to appoint attorneys to represent the Administrator in 
the conduct of business under sections 305(d) and (e) of the National 
Aeronautics and Space Act of 1958, as amended, including execution of 
requests pursuant to said sections of the act that patents be issued to 
the Administrator on behalf of the United States or that title be 
transferred to the Administrator;
    (i) Acquisition authority. To exercise the power conferred on the 
Administrator by the National Aeronautics and Space Act of 1958, as 
amended, to acquire an interest in patents and patent applications, 
including the purchase of such interests in settlement of claims for the 
unauthorized use of patented inventions and to acquire interests in 
copyrights, trademarks, and trade names;
    (j) Authority to settle copyright claims. To exercise all powers 
conferred on the Administrator by 28 U.S.C. 1498(b), including the 
settlement of claims for copyright infringement;
    (k) Granting of licenses. To make the determinations and to take any 
and all actions with respect to the licensing of NASA inventions vested 
in the Administrator by the NASA Domestic Patent Licensing Regulations, 
14 CFR subpart 1245.2 (NASA Management Instruction 5109.3) and the NASA 
Foreign Patent Licensing Regulations, 14 CFR subpart 1245.4 (NASA 
Management Instruction 5109.5) to sign all Federal Register notice 
material required by the patent licensing regulations and to otherwise 
grant licenses on any invention in which the Administrator has reserved 
the right to grant licenses; and
    (l) Waiver determinations and instruments. To sign for the 
Administrator attestations of determinations of grant or denial of 
waiver of title to inventions and to execute instruments of waiver, when 
in accordance with the recommendations of the Inventions and 
Contributions Board, and the NASA Patent Waiver Regulations, 14 CFR 
subpart 1245.1 (NASA Management Instruction 5109.2).



Sec. 1245.502  Associate General Counsel for Intellectual Property.

    The Associate General Counsel for Intellectual Property provides 
functional direction to all Patent Counsel and is redelegated the 
authority to take the following actions:
    (a) Rights determinations. (1) To execute notifications of the 
Administrator's determinations made pursuant to section 305(a) of the 
National Aeronautics and Space Act of 1958, as amended;
    (2) To make determinations, under Executive Order 10096 of January 
23, 1950 as amended, of the respective rights of the Government and of 
the inventor in and to inventions made by

[[Page 219]]

employees under the administrative jurisdiction of the National 
Aeronautics and Space Administration, and to appoint a liaison officer 
to deal with the Commissioner of Patents in such matters pursuant to 37 
CFR 100.10, ``Administration of a Uniform Patent Policy With Respect to 
the Domestic Rights in Inventions Made by Government Employees'';
    (b) Powers of attorney. To appoint and/or revoke principal attorneys 
and to execute necessary powers of attorney for the purpose of filing 
and prosecuting patent applications in which the United States, as 
represented by the Administrator, has an interest by way either of title 
or license;
    (c) Application papers and statements. To receive patent 
applications, documents, and statements transmitted to the Administrator 
pursuant to section 305(c) of the National Aeronautics and Space Act of 
1958, as amended;
    (d) Acceptance of licenses and assignments. To accept, on behalf of 
the United States, licenses under, assignments of, and other rights in 
inventions, patents, and applications for patents; and
    (e) Secrecy orders. To exercise all powers of the Administrator with 
respect to secrecy orders in patent cases and foreign filing under 35 
U.S.C. 181 et seq.

[43 FR 34122, Aug. 3, 1978, as amended at 56 FR 19797, Apr. 30, 1991]



Sec. 1245.503  Patent Counsel of Field Installations.

    Patent Counsel of Field Installations and Patent Counsel, NASA 
Resident Legal Office, Pasadena, Calif., are redelegated authority to 
take the following actions:
    (a) Rights determination. To make determination, under Executive 
Order 10096 of January 23, l950, as amended, or the respective rights of 
the Government and of the inventor in and to inventions made by employee 
under the administrative jurisdiction of their installations in those 
instances where the Government is entitled to obtain the entire right, 
title, and interest, and to make each determination, with the 
concurrence of the Associate General Counsel for Intellectual Property, 
in those instances where the Government acquires less than the entire 
domestic right, title, and interest.
    (b) Acceptance of licenses and assignments. To accept on behalf of 
the United States licenses under, assignments of and other rights in 
inventions, patents, and applications for patents.

[43 FR 34122, Aug. 3, 1978, as amended at 56 FR 19797, Apr. 30, 1991]



Sec. 1245.504  Further redelegation.

    None authorized except by virtue of succession.



PART 1250--NONDISCRIMINATION IN FEDERALLY-ASSISTED PROGRAMS OF NASA--EFFECTUATION OF TITLE VI OF THE CIVIL RIGHTS ACT OF 1964--Table of Contents




Sec.
1250.100 Purpose.
1250.101 Applicability.
1250.102 Definitions.
1250.103 Discrimination prohibited.
1250.103-1 General.
1250.103-2 Specific discriminatory acts prohibited.
1250.103-3 Employment practices.
1250.103-4 Illustrative applications.
1250.103-5 Special benefits.
1250.103-6 Medical emergencies.
1250.104 Assurances.
1250-105 Compliance information.
1250.106 Conduct of investigations.
1250.107 Procedure for effecting compliance.
1250.108 Hearings.
1250.109 Decisions and notices.
1250.110 Judicial review.
1250.111 Effect on other regulations; forms and instructions.
1250.112 Relationship with other officials.

Appendix A to Part 1250--NASA Federal Financial Assistance to Which This 
          Part Applies

    Authority: Sec. 602, 78 Stat. 252, 42 U.S.C. 2000d-1; and the laws 
listed in appendix A to this part.

    Source: 30 FR 301, Jan. 9, 1965, unless otherwise noted.



Sec. 1250.100  Purpose.

    The purpose of this part is to effectuate the provisions of Title VI 
of the Civil Rights Act of 1964 (hereafter referred to as ``the Act'') 
to the end that no person in the United States shall, on the ground of 
race, color or national origin, be excluded from participation

[[Page 220]]

in, be denied the benefits of, or be otherwise subjected to 
discrimination under any program or activity receiving Federal financial 
assistance from the National Aeronautics and Space Administration, 
hereinafter referred to as NASA.



Sec. 1250.101  Applicability.

    (a) Covered programs. (1) This part applies to any program for which 
Federal financial assistance is authorized under a law administered by 
NASA, including the types of Federal financial assistance listed in 
appendix A to this part. The fact that a type of Federal assistance is 
not listed in appendix A shall not mean, if Title VI of the Act is 
otherwise applicable, that a program is not covered. Other types of 
Federal financial assistance under statutes now in force or hereafter 
enacted may be added to appendix A by notice published in the Federal 
Register.
    (2) This part applies to money paid, property transferred, or other 
Federal financial assistance extended after the effective date of this 
part pursuant to an application approved prior to such effective date.
    (b) Excluded activities. This part does not apply to (1) any Federal 
financial assistance by way of insurance or guaranty contracts, (2) 
money paid, property transferred, or other assistance extended before 
the effective date of this part, except as provided in paragraph (a) of 
this section, (3) any assistance to any individual who is the ultimate 
beneficiary, (4) any employment practice, under any such program, of any 
employer, employment agency, or labor organization, except as provided 
in Sec. 1250.103-3, (5) contracts not covered in the types of Federal 
financial assistance listed in appendix A, or (6) advances, V-loans, and 
other financial assistance made incident to NASA procurements not 
covered in the types of Federal financial assistance listed in appendix 
A.

[30 FR 301, Jan. 9, 1965, as amended at 68 FR 51350, Aug. 26, 2003]



Sec. 1250.102  Definitions.

    As used in this part--
    (a) Administrator means the Administrator of the NASA.
    (b) Applicable means one who submits an application, request, 
proposal, or plan required to be approved by a responsible NASA 
official, or by a primary recipient, as a condition to eligibility for 
Federal financial assistance; and the term application means such an 
application, request, proposal or plan.
    (c) Facility includes all or any portion of structures, equipment, 
or other real or personal property or interests therein, and the 
provision of facilities includes the construction, expansion, 
renovation, remodeling, alteration or acquisition of facilities.
    (d) Federal financial assistance includes (1) grants and loans of 
Federal funds, (2) the grant or donation of Federal property and 
interests in property, (3) the detail of Federal personnel, (4) the sale 
and lease of, and the permission to use (on other than a casual or 
transient basis), Federal property or any interest in such property 
without consideration or at a nominal consideration, or at a 
consideration which is reduced for the purpose of assisting the 
recipient, or in recognition of the public interest to be served by such 
sale or lease to the recipient, and (5) any Federal agreement, 
arrangement, or other contract which has as one of its purposes the 
provision of assistance.
    (e) NASA means the National Aeronautics and Space Administration.
    (f) Primary recipient means any recipient which is authorized or 
required to extend Federal financial assistance to another recipient.
    (g) Principal Compliance Officer means the Director, Equal 
Employment Opportunity Office, Office of Organization and Management, 
NASA Headquarters, or any successor officer to whom the Administrator 
should delegate authority to perform the functions assigned to the 
Principal Compliance Officer by this part.
    (h) Program or activity and program mean all of the operations of 
any entity described in paragraphs (h)(1) through (4) of this section, 
any part of which is extended Federal financial assistance:
    (1)(i) A department, agency, special purpose district, or other 
instrumentality of a State or of a local government; or

[[Page 221]]

    (ii) The entity of such State or local government that distributes 
such assistance and each such department or agency (and each other State 
or local government entity) to which the assistance is extended, in the 
case of assistance to a State or local government;
    (2)(i) A college, university, or other postsecondary institution, or 
a public system of higher education; or
    (ii) A local educational agency (as defined in 20 U.S.C. 7801), 
system of vocational education, or other school system;
    (3)(i) An entire corporation, partnership, or other private 
organization, or an entire sole proprietorship--
    (A) If assistance is extended to such corporation, partnership, 
private organization, or sole proprietorship as a whole; or
    (B) Which is principally engaged in the business of providing 
education, health care, housing, social services, or parks and 
recreation; or
    (ii) The entire plant or other comparable, geographically separate 
facility to which Federal financial assistance is extended, in the case 
of any other corporation, partnership, private organization, or sole 
proprietorship; or
    (4) Any other entity which is established by two or more of the 
entities described in paragraph (h)(1), (2), or (3) of this section.
    (i) Recipient means any State, political subdivision of any State, 
or instrumentality of any State or political subdivision, any public or 
private agency, institution, or organization, or other entity, or any 
individual, in any State, to whom Federal financial assistance is 
extended, directly or through another recipient, including any 
successor, assign, or transferee thereof, but such term does not include 
any ultimate beneficiary.
    (j) Responsible NASA official means:
    (1) The heads of Offices at NASA Headquarters responsible for making 
grants, and contracts of the kind listed in appendix A; and
    (2) Each Director of a field installation which makes or administers 
grants and contracts of the kind listed in appendix A, or any officer to 
whom he has delegated authority to act within the areas of 
responsibility assigned to him under this part.
    (k) United States means the States of the United States, the 
District of Columbia, Puerto Rico, the Virgin Islands, American Samoa, 
Guam, Wake Island, the Canal Zone, and the territories and possessions 
of the United States, and the term State means any one of the foregoing.

[30 FR 301, Jan. 9, 1965, as amended at 38 FR 17936, July 5, 1973; 68 FR 
51350, Aug. 26, 2003]



Sec. 1250.103  Discrimination prohibited.



Sec. 1250.103-1  General.

    No person in the United States shall, on the ground of race, color 
or national origin be excluded from participation in, be denied the 
benefits of, or be otherwise subjected to discrimination under any 
program to which this part applies.



Sec. 1250.103-2  Specific discriminatory acts prohibited.

    (a) A recipient to which this part applies may not, directly or 
through contractual or other arrangements, on ground of race, color, or 
national origin:
    (1) Deny an individual any service, financial aid, or other benefit 
provided under the program;
    (2) Provide any service, financial aid, or other benefit to an 
individual which is different, or is provided in a different manner, 
from that provided to others under the program;
    (3) In determining the site or location of facilities, a recipient 
or applicant may not make selections with the purpose or effect of 
excluding individuals from, denying them the benefits of, or subjecting 
them to discrimination under any program to which this regulation 
applies, on the grounds of race, color, or national origin; or with the 
purpose or effect of defeating or substantially impairing the 
accomplishment of the objectives of the Act or this regulation.
    (4) Subject an individual to segregation or separate treatment in 
any matter related to his receipt of any service, financial aid, or 
other benefit under the program;
    (5) Restrict an individual in any way in the enjoyment of any 
advantage or

[[Page 222]]

privilege enjoyed by others receiving any service, financial aid, or 
other benefit under the program;
    (6) Treat an individual differently from others in determining 
whether he satisfies any admission, enrollment, quota, eligibility, 
membership or other requirement or condition which individuals must meet 
in order to be provided any service, financial aid, or other benefit 
provided under the program;
    (7) Deny an individual an opportunity to participate in the program 
through the provision of services or otherwise or afford him an 
opportunity to do so which is different from that afforded others under 
the program (including the opportunity to participate in the program as 
an employee but only to the extent set forth in Sec. 1250.103-3).
    (b) A recipient, in determining the types of services, financial 
aid, or other benefits, or facilities which will be provided under any 
such program, or the class of individuals to whom, or the situations in 
which, such services, financial aid, other benefits, or facilities will 
be provided under any such program, or the class of individuals to be 
afforded an opportunity to participate in any such program, may not, 
directly or through contractual or other arrangements, utilize criteria 
or methods of administration which have the effect of subjecting 
individuals to discrimination because of their race, color, or national 
origin, or have the effect of defeating or substantially impairing 
accomplishment of the objectives of the program as respects individuals 
of a particular race, color, or national origin.
    (c) As used in this section the services, financial aid, or other 
benefits provided under a program receiving Federal financial assistance 
shall be deemed to include any service, financial aid, or other benefit 
provided in or through a facility provided with the aid of Federal 
financial assistance.
    (d) A recipient may not take action that is calculated to bring 
about indirectly what this part forbids it to accomplish directly.
    (e) The enumeration of specific forms of prohibited discrimination 
in this section does not limit the generality of the prohibition in 
Sec. 1250.103-1. This regulation does not prohibit the consideration of 
race, color, or national origin if the purpose and effect are to remove 
or overcome the consequences of practices or impediments which have 
restricted the availability of, or participation in, the program or 
activity receiving Federal financial assistance, on the grounds of race, 
color, or national origin. Where previous discriminatory practices or 
usage tends, on the grounds of race, color, or national origin, to 
exclude individuals from participation in, to deny them the benefits of, 
or to subject them to discrimination under any program or activity to 
which this regulation applies the applicant or recipient has an 
obligation to take reasonable action to remove or overcome the 
consequences of the prior discriminatory practice or usage, and to 
accomplish the purpose of the Act.

[30 FR 301, Jan. 9, 1965, as amended at 38 FR 17936, July 5, 1973; 68 FR 
51350, Aug. 26, 2003]



Sec. 1250.103-3  Employment practices.

    (a) Where a primary objective of the Federal financial assistance to 
a program to which this part applies is to provide employment, a 
recipient may not directly or through contractual or other arrangements 
subject an individual to discrimination on the ground of race, color, or 
national origin in its employment practices under such program 
(including recruitment or recruitment advertising, employment, layoff or 
termination, upgrading, demotion, or transfer, rates of pay or other 
forms of compensation, and use of facilities), including programs where 
a primary objective of the Federal financial assistance is (1) to assist 
such individuals through employment to meet expenses incident to the 
commencement or continuation of their education or training, or (2) to 
provide work experience which contributes to the education or training 
of such individuals.
    (b) Employment opportunities provided in connection with any of the 
types of Federal financial assistance listed in appendix A, which 
opportunities are limited, or for which preference is given, to 
students, fellows, or other persons in training for the same or related 
employments, are programs

[[Page 223]]

of the kind described in paragraph (a)(1) and (2) of this section.
    (c) The requirements applicable to construction employment under any 
such program shall be those specified in or pursuant to Executive Order 
11246 or any Executive order which supersedes it.
    (d) Where a primary objective of the Federal financial assistance is 
not to provide employment, but discrimination on the grounds of race, 
color, or national origin in the employment practices of the recipient 
or other persons subject to the regulation tends, on the grounds of 
race, color, or national origin, to exclude individuals from 
participation in, to deny them the benefits of, or to subject them to 
discrimination under any program to which this regulation applies, the 
provisions of paragraph (a) of this section shall apply to the 
employment practices of the recipient or other persons subject to the 
regulation, to the extent necessary to assure equality of opportunity 
to, and nondiscriminatory treatment of, beneficiaries.

[30 FR 301, Jan. 9, 1965, as amended at 38 FR 17936, July 5, 1973; 68 FR 
51350, Aug. 26, 2003]



Sec. 1250.103-4  Illustrative applications.

    (a) In training grant services discrimination is forbidden in the 
selection or eligibility of individuals to be trained and in their 
treatment by the grantee during their training. In any case where 
selection is made from a predetermined group, such as the students in an 
institution, the group must have been selected without discrimination.
    (b) In a research or training grant to a university for activities 
to be conducted in a graduate school, discrimination in the admission 
and treatment of students in the graduate school is prohibited and the 
prohibition extends to the entire university.
    (c) Discrimination in the treatment of students or other trainees 
includes the prohibition of discrimination among the students or 
trainees in the availability or use of any academic, dormitory, eating, 
recreational, or other facilities of the grantee or other recipient.
    (d) In a research or training grant, discrimination is prohibited 
with respect to the availability of any educational activity and any 
provision of medical or other services and any financial aid to 
individuals incident to the grant.
    (e) Upon transfers of real or personal property for research or 
educational uses, discrimination is forbidden to the same extent as in 
the case of grants for the construction of facilities or the provision 
of equipment for like purposes.
    (f) In some situations even though past discriminatory practices 
have been abandoned, the consequences of such practices continue to 
impede the full availability of a benefit. If the efforts required of 
the applicant or recipient under Sec. 1250.105 to provide information 
as to the availability of the program or activity, and the rights of 
beneficiaries under this regulation, have failed to overcome these 
consequences, it will become necessary for such applicant or recipient 
to take additional steps to make the benefits fully available to racial 
and nationality groups previously subjected to discrimination. This 
action might take the form, for example, of special arrangements for 
obtaining referrals or making selections which will insure that groups 
previously subjected to discrimination are adequately served.
    (g) Even though an applicant or recipient has never used 
discriminatory policies, the services and benefits of the program or 
activity it administers may not in fact be equally available to some 
racial or nationality groups. In such circumstances an applicant or 
recipient may properly give special consideration to race, color, or 
national origin to make the benefits of its program more widely 
available to such groups, not then being adequately served. For example, 
where a university is not adequately serving members of a particular 
racial or nationality group, it may establish special recruitment 
policies to make its program better known and more readily available to 
such group, and take other steps to provide that group with more 
adequate service.

[30 FR 301, Jan. 9, 1965, as amended at 38 FR 17937, July 5, 1973; 68 FR 
51350, Aug. 26, 2003]

[[Page 224]]



Sec. 1250.103-5  Special benefits.

    An individual shall not be deemed subjected to discrimination by 
reason of his exclusion from the benefits limited by Federal law to 
individuals of a particular race, color, or national origin different 
from his.

[30 FR 301, Jan. 9, 1965, as amended at 68 FR 51350, Aug. 26, 2003]



Sec. 1250.103-6  Medical emergencies.

    Notwithstanding the provisions of Sec. Sec. 1250.103 to 1250.103-5, 
a recipient of Federal financial assistance shall not be deemed to have 
failed to comply with Sec. 1250.103-1, if immediate provision of a 
service or other benefit to an individual is necessary to prevent his 
death or serious impairment of his health, and such service or other 
benefit cannot be provided except by or through a medical institution 
which refuses or fails to comply with Sec. 1250.103-1.



Sec. 1250.104  Assurances.

    (a) General requirement. Every application for Federal financial 
assistance to which this part applies, and every application for Federal 
financial assistance to provide a facility shall, as a condition to its 
approval and the extension of any Federal financial assistance pursuant 
to the application, contain, be accompanied by, or identify and make 
reference to, an assurance that the program will be conducted or the 
facility operated in compliance with all requirements imposed by or 
pursuant to this part. If the assurance is not made a part of the 
application, the application shall identify the assurance which is 
applicable to the application. One assurance shall suffice for all 
applications of an applicant if the assurance complies with the 
conditions made applicable by this part to each such application for 
Federal financial assistance. Every assurance shall include provisions 
which give the United States a right to seek its judicial enforcement.
    (b) Duration of assurances. The period of time to be covered by the 
assurances required under this Sec. 1250.104 shall be as follows:
    (1) Real property. In the case of an application for Federal 
financial assistance for providing real property or structures thereon, 
the assurance shall obligate the recipient, or in the case of a 
subsequent transfer, the transferee, for the period during which the 
real property or structures are used for a purpose for which the Federal 
financial assistance is extended or for another purpose involving the 
provision of similar services or benefits.
    (2) Personal property. In the case of an application for Federal 
financial assistance for providing personal property, the assurance 
shall obligate the recipient for the period during which he retains 
ownership or possession of the property.
    (3) Other kinds of Federal financial assistance. In the case of an 
application for any other kind of Federal financial assistance, the 
assurance shall obligate the recipient for the period during which 
Federal financial assistance is extended pursuant to the application.
    (c) Assurances for research, training, or educational programs. (1) 
In the case of application by an institution of higher education or any 
other organization for Federal financial assistance for a program or 
activity which involves participation by students, fellows or trainees, 
including but not limited to assistance for research, training, or the 
provision of facilities, the assurance required by this Sec. 1250.104 
shall extend to admission practices and to all other practices relating 
to the treatment of students or other participants.
    (2) The assurances from such an applicant shall be applicable to the 
entire organization of the applicant.
    (d) Assurances for construction of facilities. In the case of 
assistance for the construction of a facility, or part thereof, the 
assurance shall extend to the entire facility and to facilities operated 
in connection therewith. In grants to assist in the construction of 
facilities for the provision of research, training, or educational 
services, assurances will be required that services will be provided 
without discrimination, to the same extent that discrimination would be 
forbidden as a condition of grants for the support of such services. 
Thus, as a condition of grants for the construction of academic, 
research or other facilities at institutions of higher education, 
assurances will be required that there will be no

[[Page 225]]

discrimination in the admission or treatment of students. Also, see 
paragraph (c) of this section for the requirement as to the 
applicability of the assurance to the applicant's organization.
    (e) Instrument effecting or recording transfers of real property. 
The instrument effecting or recording the transfer, shall contain a 
covenant running with the land assuring nondiscrimination for the period 
during which the real property is used for a purpose for which the 
Federal financial assistance is extended or for another purpose 
involving the provision of similar services or benefits. Where no 
transfer of property is involved, but property is improved with Federal 
financial assistance, the recipient shall agree to include such a 
covenant in any subsequent transfer of such property. Where the property 
is obtained from the Federal Government, such covenant may also include 
a condition coupled with a right to be reserved by NASA to revert title 
to the property in the event of a breach of the covenant where, in the 
discretion of the responsible NASA official, such a condition and right 
of reverter is appropriate to the statute under which the real property 
is obtained and to the nature of the grant and the grantee.
    (f) Assurances for transfer of surplus real property. Transfers of 
surplus property are subject to regulations issued by the Administrator 
of General Services (41 CFR 101-6.2).
    (g) Form of assurances. The responsible NASA officials shall specify 
the form of assurances required by this Sec. 1250.104 and the extent to 
which like assurances will be required by subgrantees, contractors and 
subcontractors, transferees, successors in interest, and other 
participants in the program.
    (h) Requests for proposals. Any request for proposals issued by NASA 
which relates to covered financial assistance listed in appendix A shall 
have set forth therein or have attached thereto the assurance prescribed 
in accordance with paragraph (g) of this section, and shall require that 
the proposer either include the assurance as a part of his signed 
proposal or identify and refer to an assurance already signed and 
submitted by the proposer.

[30 FR 301, Jan. 9, 1965, as amended at 38 FR 17937, July 5, 1973; 68 FR 
51350, Aug. 26, 2003]



Sec. 1250.105  Compliance information.

    (a) Cooperation and assistance. Each responsible NASA official shall 
to the fullest extent practicable seek the cooperation of recipients in 
obtaining compliance with this part and shall provide assistance and 
guidance to recipients to help them comply voluntarily with this part.
    (b) Compliance reports. Each recipient shall keep such records and 
submit to the Principal Compliance Officer or his designee timely, 
complete and accurate compliance reports at such times, and in such form 
and containing such information, as the Principal Compliance Officer or 
his designee may determine to be necessary to enable him to ascertain 
whether the recipient has complied or is complying with this part. In 
the case in which a primary recipient extends Federal financial 
assistance to any other recipient, such other recipient shall also 
submit such compliance reports to the primary recipient as may be 
necessary to enable the primary recipient to carry out its obligations 
under this part.
    (c) Access to sources of information. Each recipient shall permit 
access by the Principal Compliance Officer or his designee during normal 
business hours to such of its books, records, accounts and other sources 
of information, and its facilities as may be pertinent to ascertain 
compliance with this part. Where any information required of a recipient 
is in the exclusive possession of any other agency, institution or 
person and that agency, institution or person shall fail or refuse to 
furnish this information, the recipient shall so certify in its report 
and shall set forth what efforts it has made to obtain the information.
    (d) Information to beneficiaries and participants. Each recipient 
shall make available to participants, beneficiaries, and other 
interested persons such information regarding the provisions of this 
part and its applicability to the program for which the recipient 
receives Federal financial assistance, and make such information 
available to

[[Page 226]]

them in such manner, as the Principal Compliance Officer finds necessary 
to apprise such persons of the protection against discrimination assured 
them by the Act and this part.

[30 FR 301, Jan. 9, 1965, as amended at 68 FR 51350, Aug. 26, 2003]



Sec. 1250.106  Conduct of investigations.

    (a) Periodic compliance reviews. The responsible NASA official or 
his designee shall from time to time review the practices of recipients 
to determine whether they are complying with this part.
    (b) Complaints. Any person who believes himself or any specific 
class of individuals to be subjected to discrimination prohibited by 
this part may by himself or by a representative file with the Principal 
Compliance Officer or his designee a written complaint. A complaint must 
be filed not later than 90 days from the date of the alleged 
discrimination, unless the time for filing is extended by the Principal 
Compliance Officer or his designee.
    (c) Investigations. The Principal Compliance Officer or his designee 
will make a prompt investigation whenever a compliance review, report, 
complaint, or any other information indicates a possible failure to 
comply with this part. The investigation should include, where 
appropriate, a review of the pertinent practices and policies of the 
recipient, the circumstances under which the possible noncompliance with 
this part occurred, and other factors relevant to a determination as to 
whether the recipient has failed to comply with this part.
    (d) Resolution of matters. (1) If an investigation pursuant to 
paragraph (c) of this section indicates a failure to comply with this 
part, the Principal Compliance Officer or his designee will so inform 
the recipient and the matter will be resolved by informal means whenever 
possible. If it has been determined that the matter cannot be resolved 
by informal means, action will be taken as provided for in Sec. 
1250.107.
    (2) If an investigation does not warrant action pursuant to 
paragraph (d)(1) of this section, the responsible NASA official or his 
designee will so inform the recipient and the complainant, if any, in 
writing.
    (e) Intimidatory or retaliatory acts prohibited. No recipient or 
other person shall intimidate, threaten, coerce, or discriminate against 
any individual for the purpose of interfering with any right or 
privilege secured by section 601 of the Act or this part, or because he 
has made a complaint, testified, assisted, or participated in any manner 
in an investigation, proceeding, or hearing under this part. The 
identity of complainants shall be kept confidential except to the extent 
necessary to carry out the purposes of this part, including the conduct 
of any investigation, hearing, or judicial proceeding arising 
thereunder.



Sec. 1250.107  Procedure for effecting compliance.

    (a) General. If there appears to be a failure or threatened failure 
to comply with this part, and if the noncompliance or threatened 
noncompliance cannot be corrected by informal means, compliance with 
this part may be effected by the suspension or termination of or refusal 
to grant or to continue Federal financial assistance or by any other 
means authorized by law. Such other means may include, but are not 
limited to, (1) a reference to the Department of Justice with a 
recommendation that appropriate proceedings be brought to enforce any 
rights of the United States under any law of the United States 
(including other titles of the Act), or any assurance or other 
contractual undertaking, and (2) any applicable proceeding under State 
or local law.
    (b) Noncompliance with Sec. 1250.104. If an applicant fails or 
refuses to furnish an assurance required under Sec. 1250.104 or 
otherwise fails or refuses to comply with a requirement imposed by or 
pursuant to that section, Federal financial assistance may be refused in 
accordance with the procedures of paragraph (c) of this section. NASA 
shall not be obligated to provide assistance in such a case during the 
pendency of the administrative proceedings under such subsection except 
that NASA shall continue assistance during the pendency of such 
proceedings where such assistance is due and payable pursuant to an 
application therefor approved prior to the effective date of this part.

[[Page 227]]

    (c) Termination of or refusal to grant or to continue Federal 
financial assistance. No order suspending, terminating or refusing to 
grant or continue Federal financial assistance shall become effective 
until (1) the responsible NASA official has advised the applicant or 
recipient of his failure to comply and has determined that compliance 
cannot be secured by voluntary means, (2) there has been an express 
finding on the record, after opportunity for hearing, of a failure by 
the applicant or recipient to comply with a requirement imposed by or 
pursuant to this part, (3) the action has been approved by the 
Administrator pursuant to Sec. 1250.109(e), and (4) the expiration of 
30 days after the Administrator has filed with the committee of the 
House and the committee of the Senate having legislative jurisdiction 
over the program involved, a full written report of the circumstances 
and the grounds for such action. Any action to suspend or terminate or 
to refuse to grant or to continue Federal financial assistance shall be 
limited to the particular political entity, or part thereof, or other 
applicant or recipient as to whom such a finding has been made and shall 
be limited in its effect to the particular program, or part thereof, in 
which such noncompliance has been so found.
    (d) Other means authorized by law. No action to effect compliance by 
any other means authorized by law shall be taken until (1) the Principal 
Compliance Officer has determined that compliance cannot be secured by 
voluntary means, (2) the recipient or other person has been notified of 
its failure to comply and of the action to be taken to effect compliance 
and (3) the expiration of at least 10 days from the mailing of such 
notice to the recipient or other person. During this period of at least 
10 days additional efforts shall be made to persuade the recipient or 
other person to comply with this part and to take such corrective action 
as may be appropriate.

[30 FR 301, Jan. 9, 1965, as amended at 38 FR 17937, July 5, 1973]



Sec. 1250.108  Hearings.

    (a) Opportunity for hearing. Whenever an opportunity for a hearing 
is required by Sec. 1250.107(c), reasonable notice shall be given by 
registered or certified mail, return receipt requested, to the affected 
applicant or recipient. This notice shall advise the applicant or 
recipient of the action proposed to be taken, the specific provision 
under which the proposed action against it is to be taken, and the 
matters of fact or law asserted as the basis for this action, and either 
(1) fix a date not less than 20 days after the date of such notice 
within which the applicant or recipient may request of the Principal 
Compliance Officer that the matter be scheduled for hearing or (2) 
advise the applicant or recipient that the matter in question has been 
set down for hearing at a stated place and time. The time and place so 
fixed shall be reasonable and shall be subject to change for cause. The 
complainant, if any, shall be advised of the time and place of the 
hearing. An applicant or recipient may waive a hearing and submit 
written information and argument for the record. The failure of an 
applicant or recipient to request a hearing under this paragraph or to 
appear at a hearing for which a date has been set shall be deemed to be 
a waiver of the right to a hearing under section 602 of the Act and 
Sec. 1250.107(c) of this part and consent to the making of a decision 
on the basis of such information as is available.
    (b) Time and place of hearing. Hearings shall be held at NASA 
Headquarters in Washington, DC, at a time fixed by the Principal 
Compliance Officer unless he determines that the convenience of the 
applicant or recipient or of NASA requires that another place be 
selected. Hearings shall be held before the Administrator, or, at his 
discretion, before a hearing examiner designated in conformity with 5 
U.S.C. 3105 and 3344 (section 11 of the Administrative Procedure Act).
    (c) Right to counsel. In all proceedings under this section, the 
applicant or recipient and NASA shall have the right to be represented 
by counsel.
    (d) Procedures, evidence, and record. (1) The hearing, decision, and 
any administrative review thereof shall be conducted in conformity with 
5 U.S.C. 554-557 (section 5-8 of the Administrative Procedure Act), and 
in accordance with such rules of procedure as are proper

[[Page 228]]

(and not inconsistent with this section) relating to the conduct of the 
hearing, giving of notices subsequent to those provided for in paragraph 
(a) of this section, taking of testimony, exhibits, arguments, and 
briefs, requests for findings, and other related matters. Both NASA and 
the applicant or recipient shall be entitled to introduce all relevant 
evidence on the issues as stated in the notice for hearing or as 
determined by the officer conducting the hearing at the outset of or 
during the hearing.
    (2) Technical rules of evidence shall not apply to hearings 
conducted pursuant to this part, but rules or principles designed to 
assure production of the most credible evidence available and to subject 
testimony to test by cross-examination shall be applied where reasonably 
necessary by the officer conducting the hearing. The hearing officer may 
exclude irrelevant, immaterial, or unduly repetitious evidence. All 
documents and other evidence offered or taken for the record shall be 
open to examination by the parties and opportunity shall be given to 
refute facts and arguments advanced on either side of the issues. A 
transcript shall be made of the oral evidence except to the extent the 
substance thereof is stipulated for the record. All decisions shall be 
based upon the hearing record and written findings shall be made.
    (e) Consolidated or joint hearings. In cases in which the same or 
related facts are asserted to constitute non-compliance with this part 
with respect to two or more Federal statutes, authorities, or other 
means by which Federal financial assistance is extended and to which 
this part applies, or non-compliance with this part and the regulations 
of one or more other Federal departments or agencies issued under Title 
VI of the Act, the Administrator may, by agreement with such other 
departments or agencies where applicable, provide for the conduct of 
consolidated or joint hearings, and for the application to such hearings 
of rules of procedures not inconsistent with the part. Final decisions 
in such cases, insofar as this part is concerned, shall be made in 
accordance with Sec. 1250.109.

[30 FR 301, Jan. 9, 1965, as amended at 38 FR 17937, July 5, 1973; 68 FR 
51350, Aug. 26, 2003]



Sec. 1250.109  Decisions and notices.

    (a) Decision by person other than the NASA Principal Compliance 
Officer. If the hearing is held by a hearing examiner, such hearing 
examiner shall either make an initial decision, if so authorized, or 
certify the entire record including his recommended findings and 
proposed decision to the Principal Compliance Officer for a final 
decision, and a copy of such initial decision or certification shall be 
mailed to the applicant or recipient. Where the initial decision is made 
by the hearing examiner, the applicant or recipient may, within 30 days 
of the mailing of such notice of initial decision, file with the 
Principal Compliance Officer his exceptions to the initial decision with 
his reasons therefor. In the absence of exceptions, the Principal 
Compliance Officer may on his own motion, within 45 days after the 
initial decision, serve on the applicant or recipient a notice that he 
will review the decision. Upon the filing of such exceptions or of such 
notice of review the Principal Compliance Officer shall review the 
initial decision and issue his own decision thereon including the 
reasons therefor. In the absence of either exceptions or a notice of 
review the initial decision shall constitute the final decision of the 
Principal Compliance Officer.
    (b) Decisions on record or review by the NASA Principal Compliance 
Officer. Whenever a record is certified to the Principal Compliance 
Officer for decision or he reviews the decision of a hearing examiner 
pursuant to paragraph (a) of this section, or whenever the Administrator 
conducts the hearing, the applicant or recipient shall be given 
reasonable opportunity to file with him briefs or other written 
statements of its contentions, and a copy of the final decision of the 
Principal Compliance Officer shall be given in writing to the applicant 
or recipient and to the complainant, if any.
    (c) Decisions on record where a hearing is waived. Whenever a 
hearing is waived pursuant to Sec. 1250.108, a decision shall be made 
by the Principal Compliance

[[Page 229]]

Officer on the record and a copy of such decision shall be given in 
writing to the applicant or recipient, and to the complainant, if any.
    (d) Rulings required. Each decision of a hearing officer or the 
Principal Compliance Officer shall set forth his ruling on each finding, 
conclusion, or exception presented, and shall identify the requirement 
or requirements imposed by or pursuant to this part with which it is 
found that the applicant or recipient has failed to comply.
    (e) Approval by administrator. Any final decision of the NASA 
Principal Compliance Officer which provides for the suspension or 
termination of, or the refusal to grant or continue Federal financial 
assistance, or the imposition of any other sanction available under this 
part or the Act, shall promptly be transmitted to the Administrator, who 
may approve such decision, may vacate it, or remit or mitigate any 
sanction imposed.
    (f) Content of orders. The final decision may provide for suspension 
or termination of, or refusal to grant or continue Federal financial 
assistance, in whole or in part, to which this regulation applies, and 
may contain such terms, conditions, and other provisions as are 
consistent with and will effectuate the purposes of the Act and this 
part including provisions designed to assure that no Federal financial 
assistance to which this regulation applies will thereafter be extended 
to the applicant or recipient determined by such decision to be in 
default in its performance of an assurance given by it pursuant to this 
part, or to have otherwise failed to comply with this part, unless and 
until it corrects its non-compliance and satisfies the Principal 
Compliance Officer that it will fully comply with this part.
    (g) Post termination proceedings. (1) An applicant or recipient 
adversely affected by an order issued under paragraph (f) of this 
section shall be restored to full eligibility to receive Federal 
financial assistance if it satisfies the terms and conditions of that 
order for such eligibility or if it brings itself into compliance with 
this regulation and provides reasonable assurance that it will fully 
comply with this regulation.
    (2) Any applicant or recipient adversely affected by an order 
entered pursuant to paragraph (f) of this section may at any time 
request the Principal Compliance Officer to restore fully the 
eligibility to receive Federal financial assistance. Any such request 
shall be supported by information showing that the applicant or 
recipient has met the requirements of paragraph (g)(1) of this section. 
If the Principal Compliance Officer determines that those requirements 
have been satisfied, he shall restore such eligibility.
    (3) If the Principal Compliance Officer denies any such request, the 
applicant or recipient may submit a request for a hearing in writing, 
specifying why it believes such official to have been in error. It shall 
thereupon be given an expeditious hearing, with a decision on the 
record, in accordance with rules of procedure issued by the Principal 
Compliance Officer. The applicant or recipient will be restored to such 
eligibility if it proves at such a hearing that it satisfied the 
requirements of paragraph (g)(1) of this section. While proceedings 
under this paragraph are pending, the sanctions imposed by the order 
issued under paragraph (f) of this section shall remain in effect.

[30 FR 301, Jan. 9, 1965, as amended at 38 FR 17937, July 5, 1973; 68 FR 
51350, Aug. 26, 2003]



Sec. 1250.110  Judicial review.

    Action taken pursuant to section 602 of the Act is subject to 
judicial review as provided in section 603 of the Act.



Sec. 1250.111  Effect on other regulations; forms and instructions.

    (a) Effect on other regulations. All regulations, orders, or like 
directions heretofore issued by any officer of NASA which impose 
requirements designed to prohibit any discrimination against individuals 
on the ground of race, color, or national origin under any program to 
which this part applies, and which authorize the suspension or 
termination of or refusal to grant or to continue Federal financial 
assistance to any applicant for or recipient of such assistance for 
failure to comply with such requirements, are hereby superseded to the 
extent that such discrimination is prohibited by this part, except that 
nothing in this part shall

[[Page 230]]

be deemed to relieve any person of any obligation assumed or imposed 
under any such superseded regulation, order, instruction, or like 
direction prior to the effective date of this Instruction. Nothing in 
this part, however, shall be deemed to supersede any of the following 
(including future amendments thereof): (1) Executive Orders 10925 and 
11246 and regulations or instructions issued thereunder, or (2) any 
other regulations or instructions, insofar as such other regulations or 
instructions prohibit discrimination on the ground of race, color, or 
national origin in any program or situation to which this part is 
inapplicable, or prohibit discrimination on any other ground.
    (b) Forms and instructions. Each responsible NASA official shall 
issue and promptly make available to interested persons forms and 
detailed instructions and procedures for effectuating this part as 
applied to financial assistance to which this part applies and for which 
he is responsible.
    (c) Supervision and coordination. The Administrator may assign to 
officials of other departments or agencies of the Government, with the 
consent of such departments or agencies, responsibilities in connection 
with the effectuation of the purposes of Title VI of the Act and this 
part (other than responsibility for final decision as provided in Sec. 
1250.109), including the achievement of effective coordination and 
maximum uniformity within NASA and within the Executive Branch of the 
Government in the application of Title VI and this part to similar 
programs and in similar situations. Any action taken, determination 
made, or requirement imposed by an official of another department or 
agency acting pursuant to an assignment of responsibility under this 
subsection shall have the same effect as though such action has been 
taken by the responsible official of this agency.

[30 FR 301, Jan. 9, 1965, as amended at 38 FR 17937, July 5, 1973; 68 FR 
51350, Aug. 26, 2003]



Sec. 1250.112  Relationship with other officials.

    NASA officials, in performing the functions assigned to them by this 
part, are responsible for recognizing the delegations of authority and 
responsibility of other NASA officials and for seeing the actions taken 
or instructions issued by them are properly coordinated with the offices 
and divisions having joint interests.

Appendix A to Part 1250--NASA Federal Financial Assistance to Which This 
                              Part Applies

    1. Grants made under the authority of Pub. L. 85-934, approved 
September 6, 1958 (42 U.S.C. 1891-1893).
    2. Contracts with nonprofit institutions of higher education or with 
nonprofit organizations whose primary purpose is the conduct of 
scientific research, wherein title to equipment purchased with funds 
under such contracts may be vested in such institutions or organizations 
under the authority of section 2 of Pub. L. 85-934, approved September 
6, 1938 (42 U.S.C. 1892).
    3. Training grants made under the authority of the National 
Aeronautics and Space Act of 1958, as amended (42 U.S.C. 2451-2460, 
2472-2473).
    4. Facilities grants made under authority in annual NASA 
authorization and appropriation acts.

[30 FR 301, Jan. 9, 1965, as amended at 38 FR 17936, July 5, 1973]



PART 1251--NONDISCRIMINATION ON BASIS OF HANDICAP--Table of Contents




                   Subpart 1251.1--General Provisions

Sec.
1251.100 Purpose.
1251.101 Application.
1251.102 Definitions.
1251.103 Discrimination prohibited.
1251.104 Assurances required.
1251.105 Remedial action, voluntary action, and self-evaluation.
1251.106 Designation of responsible employee and adoption of grievance 
          procedures.
1251.107 Notice.
1251.108 Administrative requirements for small recipients.
1251.109 Effect of State or local law or other requirements and effect 
          of employment opportunities.

                  Subpart 1251.2--Employment Practices

1251.200 Discrimination prohibited.
1251.201 Reasonable accommodation.
1251.202 Employment criteria.
1251.203 Preemployment inquiries.

                      Subpart 1251.3--Accessibility

1251.300 Discrimination prohibited.

[[Page 231]]

1251.301 Existing facilities.
1251.302 New construction.

                       Subpart 1251.4--Procedures

1251.400 Procedures for compliance.

    Subpart 1251.5--Enforcement of Nondiscrimination on the Basis of 
Handicap in Programs or Activities Conducted by the National Aeronautics 
                        and Space Administration

1251.501 Purpose.
1251.502 Application.
1251.503 Definitions.
1251.504-1251.509 [Reserved]
1251.510 Self-evaluation.
1251.511 Notice.
1251.512-1251.529 [Reserved]
1251.530 General prohibitions against discrimination.
1251.531-1251.539 [Reserved]
1251.540 Employment.
1251.541-1251.548 [Reserved]
1251.549 Program accessibility: Discrimination prohibited.
1251.550 Program accessibility: Existing facilities.
1251.551 Program accessibility: New construction and alterations.
1251.552-1251.559 [Reserved]
1251.560 Communications.
1251.561-1251.569 [Reserved]
1251.570 Compliance procedures.
1251.571-1251.999 [Reserved]

    Authority: 29 U.S.C. 794.

    Source: 51 FR 26862, July 28, 1986, unless otherwise noted.



                   Subpart 1251.1--General Provisions



Sec. 1251.100  Purpose.

    This part effectuates section 504 of the Rehabilitation Act of 1973, 
which is designed to eliminate discrimination on the basis of handicap 
in any program or activity receiving Federal financial assistance.



Sec. 1251.101  Application.

    This part applies to each recipient of Federal financial assistance 
from the National Aeronautics and Space Administration and to each 
program or activity that receives such assistance.

[51 FR 26862, July 28, 1986, as amended at 68 FR 51351, Aug. 26, 2003]



Sec. 1251.102  Definitions.

    As used in this part, the term:
    (a) The Act means the Rehabilitation Act of 1973, Pub. L. 93-112, as 
amended by the Rehabilitation Act Amendments of 1974, Pub. L. 93-516, 29 
U.S.C. 794.
    (b) Section 504 means section 504 of the Act.
    (c) Assistant Administrator means the Assistant Administrator for 
Equal Opportunity Programs for NASA.
    (d) Recipient means any state or its political subdivision, any 
instrumentality of a state or its political subdivision, any public or 
private agency, institution, organization, or other entry, or any person 
to which Federal financial assistance is extended directly or through 
another recipient, including any successor, assignee, or transferee of a 
recipient, but excluding the ultimate beneficiary of the assistance.
    (e) Applicant for assistance means one who submits an application, 
request, or plan required to be approved by a NASA official or by a 
recipient as a condition to becoming a recipient.
    (f) Federal financial assistance means any grant, loan, contract 
(other than a procurement contract or a contract of insurance or 
guaranty), or any other arrangement by which the agency provides or 
otherwise makes available assistance in the form of:
    (1) Funds;
    (2) Services of Federal personnel; or
    (3) Real and personal property or any interest in or use of such 
property, including:
    (i) Transfers or leases of such property for less than fair market 
value or for reduced consideration; and
    (ii) Proceeds from a subsequent transfer or lease of such property 
if the Federal share of its fair market value is not returned to the 
Federal Government.
    (g) Facility means all or any portion of buildings, structures, 
equipment, roads, walks, parking lots, or other real or personal 
property or interest in such property.
    (h) Handicapped person. (1) Handicapped persons means any person 
who:
    (i) Has a physical or mental impairment which substantially limits 
one or more major life activities;
    (ii) Has a record of such an impairment; or
    (iii) Is regarded as having such an impairment.

[[Page 232]]

    (2) As used in paragraph (h)(1) of this section, the phrase:
    (i) Physical or mental impairment means:
    (A) Any physiological disorder or condition, cosmetic disfigurement, 
or anatomical loss affecting one or more of the following body systems: 
neurological; musculoskeletal; special sense organs; respiratory, 
including speech organs; cardiovascular; reproductive; digestive; 
genitourinary; hemic and lymphatic; skin; and endocrine; or
    (B) Any mental or psychological disorder, such as mental 
retardation, organic brain syndrome, emotional or mental illness, and 
specific learning disabilities. The term physical or mental impairment 
includes, but is not limited to, such diseases and conditions as 
orthopedic, visual, speech, and hearing impairments, cerebral palsy, 
epilepsy, muscular dystrophy, multiple sclerosis, cancer, heart disease, 
diabetes, mental retardation, emotional illness, drug addiction, and 
alcoholism.
    (ii) Major life activities means functions such as caring for one's 
self, performing manual tasks, walking, seeing, hearing, speaking, 
breathing, learning, and working.
    (iii) Has a record of such an impairment means has a history of, or 
has been misclassified as having, a mental or physical impairment that 
substantially limits one or more major life activities.
    (iv) Is regarded as having an impairment means:
    (A) Has a physical or mental impairment that does not substantially 
limit major life activities but that is treated by a recipient as 
constituting such a limitation;
    (B) Has a physical or mental impairment that substantially limits 
major life activities only as a result of the attitudes of others toward 
such impairment; or
    (C) Has none of the impairments defined in this paragraph but is 
treated by a recipient as having such an impairment.
    (i) Qualified handicapped person means:
    (1) With respect to employment, a handicapped person who, with 
reasonable accommodation, can perform the essential functions of the job 
in question;
    (2) With respect to other services, a handicapped person who meets 
the essential eligibility requirements for the receipt of such services.
    (j) Handicap means any condition or characteristic that renders a 
person a handicapped person as defined in paragraph (h) of this section.
    (k) Program or activity means all of the operations of any entity 
described in paragraphs (k)(1) through (4) of this section, any part of 
which is extended Federal financial assistance:
    (1)(i) A department, agency, special purpose district, or other 
instrumentality of a State or of a local government; or
    (ii) The entity of such State or local government that distributes 
such assistance and each such department or agency (and each other State 
or local government entity) to which the assistance is extended, in the 
case of assistance to a State or local government;
    (2)(i) A college, university, or other postsecondary institution, or 
a public system of higher education; or
    (ii) A local educational agency (as defined in 20 U.S.C. 7801), 
system of vocational education, or other school system;
    (3)(i) An entire corporation, partnership, or other private 
organization, or an entire sole proprietorship--
    (A) If assistance is extended to such corporation, partnership, 
private organization, or sole proprietorship as a whole; or
    (B) Which is principally engaged in the business of providing 
education, health care, housing, social services, or parks and 
recreation; or
    (ii) The entire plant or other comparable, geographically separate 
facility to which Federal financial assistance is extended, in the case 
of any other corporation, partnership, private organization, or sole 
proprietorship; or
    (4) Any other entity which is established by two or more of the 
entities described in paragraph (k) (1), (2), or (3) of this section.

[51 FR 26862, July 28, 1986, as amended at 68 FR 51351, Aug. 26, 2003]

[[Page 233]]



Sec. 1251.103  Discrimination prohibited.

    (a) General. No qualified handicapped person shall, on the basis of 
handicap, be excluded from participation in, be denied the benefits of, 
or otherwise be subjected to discrimination under any program or 
activity which receives Federal financial assistance.
    (b) Discriminatory actions prohibited. (1) A recipient, in providing 
any aid, benefits, or services, may not, directly or through 
contractual, licensing, or other arrangements, on the basis of handicap:
    (i) Deny a qualified handicapped person the opportunity to 
participate in or benefit from the aid, benefit, or service;
    (ii) Afford a qualified handicapped person an opportunity to 
participate in or benefit from aid, benefit, or service that is not 
equal to that afforded others;
    (iii) Provide a qualified handicapped person with an aid, benefit, 
or service that is not as effective as that provided to others;
    (iv) Provide different or separate aid, benefits, or services to 
handicapped persons or to any class of handicapped persons unless such 
action is necessary to provide qualified handicapped persons with aid, 
benefits, or services that are as effective as those provided to others;
    (v) Aid or perpetuate discrimination against a qualified handicapped 
person by providing significant assistance to an agency, organization, 
or person that discriminates on the basis of handicap in providing any 
aid, benefit, or service to beneficiaries of the recipient's program or 
activity;
    (vi) Deny a qualified handicapped person the opportunity to 
participate as a member of planning or advisory boards; or
    (vii) Otherwise limit a qualified handicapped person in the 
enjoyment of any right, privilege, advantage, or opportunity enjoyed by 
others receiving an aid, benefit, or service.
    (2) For purposes of this part, aids, benefits, and services, to be 
equally effective, are not required to produce the identical result or 
level of achievement for handicapped persons and nonhandicapped persons, 
but must afford handicapped persons equal opportunity to obtain the same 
result, to gain the same benefit, or to reach the same level of 
achievement, in the most integrated setting appropriate to the person's 
needs.
    (3) Recipients shall take appropriate steps to ensure that no 
handicapped individual is denied the benefits of, excluded from 
participation in, or otherwise subjected to discrimination in any 
program or activity receiving Federal financial assistance because of 
the absence of auxiliary aids for individuals with impaired sensory, 
manual, or speaking skills.
    (4) Despite the existence of separate or different aid, benefits, or 
services provided in accordance with this part, a recipient may not deny 
a qualified handicapped person the opportunity to participate in such 
programs or activities that are not separate or different.
    (5) A recipient may not, directly or through contractual or other 
arrangements, utilize criteria or methods of administration:
    (i) That have the effect of subjecting qualified handicapped persons 
to discrimination of the basis of handicap;
    (ii) That have the purpose or effect of defeating or substantially 
impairing accomplishment of the objectives of the recipient's program or 
activity with respect to handicapped persons; or
    (iii) That perpetuate the discrimination of another recipient if 
both recipients are subject to common administrative control or are 
agencies of the same State.
    (6) In determining the site or location of a facility, an applicant 
for assistance or a recipient may not make selections:
    (i) That have the effect of excluding handicapped persons from, 
denying them the benefits of, or otherwise subjecting them to 
discrimination under any program or activity that receives Federal 
financial assistance; or
    (ii) That have the purpose or effect of defeating or substantially 
impairing the accomplishment of the objectives of the program or 
activity with respect to handicapped persons.
    (7) As used in this section, the aid, benefit, or service provided 
under a program or activity receiving Federal financial assistance 
includes any aid, benefit, or service provided in or

[[Page 234]]

through a facility that has been constructed, expanded, altered, leased 
or rented, or otherwise acquired, in whole or in part, with Federal 
financial assistance.
    (8) Recipients shall take appropriate steps to ensure that 
communications with their applicants, employees, and beneficiaries are 
available to persons with impaired vision and hearing.
    (c) Aid, benefits, or services limited by Federal law. The exclusion 
of nonhandicapped persons from aid, benefits, or services limited by 
Federal statute of Executive order to handicapped persons from aid, 
benefits, or services limited by Federal statute or Executive order to a 
different class of handicapped persons is not prohibited by this part.

[51 FR 26862, July 28, 1986, as amended at 68 FR 51351, Aug. 26, 2003]



Sec. 1251.104  Assurances required.

    (a) Assurances. An applicant for Federal financial assistance to 
which this part applies shall submit an assurance, on a form specified 
by the Assistant Administrator, that the program or activity will be 
operated in compliance with this part. An applicant may incorporate 
these assurances by reference in subsequent applications to NASA.
    (b) Duration of obligation. (1) In the case of Federal financial 
assistance extended in the form of real property or to provide real 
property or structures on the property, the assurance will obligate the 
recipient or, in the case of a subsequent transfer, the transferee, for 
the period during which the real property or structures are used for the 
purpose for which Federal financial assistance is extended or for 
another purpose involving the provision of similar services or benefits.
    (2) In the case of Federal financial assistance extended to provide 
personal property, the assurance will obligate the recipient for the 
period during which it retains ownership or possession of the property.
    (3) In all other cases, the assurance will obligate the recipient 
for the period during which Federal financial assistance is extended.
    (c) Covenants. (1) Where Federal financial assistance is provided in 
the form of real property or interest in the property from NASA, the 
instrument effecting or recording this transfer shall contain a covenant 
running with the land to assure nondiscrimination for the period during 
which the real property is used for a purpose for which the Federal 
financial assistance is extended or for another purpose involving the 
provision of similar services or benefits.
    (2) Where no transfer of property is involved but property is 
purchased or improved with Federal financial assistance, the recipient 
shall agree to include the covenant described in paragraph (c)(3) of 
this section in the instrument effecting or recording any subsequent 
transfer of the property.
    (3) Where Federal financial assistance is provided in the form of 
real property or interest in the property from NASA, the covenant shall 
also include a condition coupled with a right to be reserved by NASA to 
revert title to the property in the event of a breach of the covenant. 
If a transferee of real property proposes to mortgage or otherwise 
encumber the real property as security for financing construction of 
new, or improvement of existing facilities on the property for the 
purposes for which the property was transferred, the Assistant 
Administrator may, upon request of the transferee and if necessary to 
accomplish such financing and upon such conditions as he or she deems 
appropriate, agree to forbear the exercise of such right to revert title 
for so long as the lien of such mortgage or other encumbrance remains 
effective.

[51 FR 26862, July 28, 1986, as amended at 68 FR 51351, Aug. 26, 2003]



Sec. 1251.105  Remedial action, voluntary action, and self-evaluation.

    (a) Remedial action. (1) If the Assistant Administrator finds that a 
recipient has discriminated against persons on the basis of handicap in 
violation of section 504 or this part, the recipient shall take such 
remedial action as the Assistant Administrator deems necessary to 
overcome the effects to the discrimination.
    (2) Where a recipient is found to have discriminated against persons 
on the basis of handicap in violation of section 504 or this part and 
where another

[[Page 235]]

recipient exercises control over the recipient that has discriminated, 
the Assistant Administrator, where appropriate, may require either or 
both recipients to take remedial action.
    (3) The Assistant Administrator may, where necessary to overcome the 
effects of discrimination in violation of section 504 or this part, 
require a recipient to take remedial action:
    (i) With respect to handicapped persons who are no longer 
participants in the recipient's program or activity but who were 
participants in the program or activity when such discrimination 
occurred; or
    (ii) With respect to handicapped persons who would have been 
participants in the program or activity had the discrimination not 
occurred; or
    (iii) With respect to handicapped persons presently in the program 
or activity, but not receiving full benefits or equal and integrated 
treatment within the program or activity.
    (b) Voluntary action. A recipient may take steps, in addition to any 
action that is required by this part, to overcome the effects of 
conditions that resulted in limited participation in the recipient's 
program or activity by qualified handicapped persons.
    (c) Self-evaluation. (1) A recipient shall, within 1 year of the 
effective date of this part; or within 1 year of first becoming a 
recipient:
    (i) Evaluate, with the assistance of interested persons, including 
handicapped persons or organizations representing handicapped persons, 
its current policies and practices and the effects thereof that do not 
or may not meet the requirements of this part;
    (ii) Modify, after consultation with interested persons, including 
handicapped persons or organizations representing handicapped persons, 
any policies and practices that do not meet the requirements of this 
part; and
    (iii) Take, after consultation with interested persons, including 
handicapped persons or organizations representing handicapped persons, 
appropriate remedial steps to eliminate the effects of any 
discrimination that resulted from adherence to these policies and 
practices.
    (2) A recipient that employs 15 or more persons shall, for at least 
3 years, follow completion of the evaluation required under paragraph 
(c)(1) of this section, maintain on file, make available for public 
inspection, and provide to the Assistant Administrator upon request:
    (i) A list of the interested persons consulted;
    (ii) A description of areas examined and any problems identified; 
and
    (iii) A description of any modifications made and of any remedial 
steps taken.

[51 FR 26862, July 28, 1986, as amended at 68 FR 51351, Aug. 26, 2003]



Sec. 1251.106  Designation of responsible employee and adoption of grievance procedures.

    (a) Designation of responsible employee. A recipient that employs 15 
or more persons shall designate at least one person to coordinate its 
efforts to comply with this part.
    (b) Adoption of grievance procedures. A recipient that employs 15 or 
more persons shall adopt grievance procedures that incorporate 
appropriate due process standards and that provide for the prompt and 
equitable resolution of complaints alleging any action prohibited by 
this part. Such procedures need not to be established with respect to 
complaints from applicants for employment or from applicants for 
admission to postsecondary educational institutions.



Sec. 1251.107  Notice.

    (a) A recipient that employs 15 or more persons shall take 
appropriate initial and continuing steps to notify participants, 
beneficiaries, applicants, and employees, including those with impaired 
vision or hearing, and unions or professional organizations holding 
collective bargaining or professional agreements with the recipient that 
it does not discriminate on the basis of handicap in violation of 
section 504 and this part. The notification shall state, where 
appropriate, that the recipient does not discriminate in admission or 
access to, or treatment or employment in, its programs or activities. 
The notification shall also include an identification of the responsible 
employee designated pursuant to Sec. 1251.106(a). A

[[Page 236]]

recipient shall make the initial notification required by this paragraph 
within 90 days of the effective date of this part. Methods of initial 
and continuing notification may include the posting of notices, 
publication in newspapers and magazines, placement of notices in 
recipient's publication, and distribution of memoranda or other written 
communications.
    (b) If a recipient publishes or uses recruitment materials or 
publications containing general information that it makes available to 
participants, beneficiaries, applicants, or employees, it shall include 
in those materials or publications a statement of the policy described 
in paragraph (a) of this section. A recipient may meet the requirement 
of this section and this paragraph either by including appropriate 
inserts in existing materials and publications or by revising and 
reprinting the materials and publications.

[51 FR 26862, July 28, 1986, as amended at 68 FR 51351, Aug. 26, 2003]



Sec. 1251.108  Administrative requirements for small recipients.

    The Assistant Administrator may require any recipient with fewer 
than 15 employees, or any class of such recipients, to comply with 
Sec. Sec. 1251.106 and 1251.107, in whole or in part, when the 
Assistant Administrator finds a violation of this part or finds that 
such compliance will not significantly impair the ability of the 
recipient or class of recipients to provide benefits or services.



Sec. 1251.109  Effect of State or local law or other requirements and effect of employment opportunities.

    (a) The obligation to comply with this part is not obviated or 
alleviated by the existence of any state or local law or other 
requirement that, on the basis of handicap, imposes prohibitions or 
limits upon the eligibility of qualified handicapped persons to receive 
services or to practice any occupation or profession.
    (b) The obligation to comply with this part is not obviated or 
alleviated because employment opportunities in any occupation or 
profession are or may be more limited for handicapped persons than for 
nonhandicapped persons.



                  Subpart 1251.2--Employment Practices



Sec. 1251.200  Discrimination prohibited.

    (a) General. (1) No qualified handicapped person shall, on the basis 
of handicap, be subjected to discrimination in employment under any 
program or activity to which this part applies.
    (2) A recipient that receives assistance shall take positive steps 
to employ and advance in employment qualified handicapped persons in 
programs or activities assisted under the Act.
    (3) A recipient shall make all decisions concerning employment under 
any program or activity to which this part applies in a manner which 
ensures that discrimination on the basis of handicap does not occur and 
may not limit, segregate, or classify applicants or employees in any way 
that adversely affects their opportunities or status because of 
handicap.
    (4) A recipient may not participate in a contractual or other 
relationship that has the effect of subjecting qualified handicapped 
applicants or employees to discrimination prohibited by this subpart. 
The relationships referred to in this subparagraph include relationships 
with employment and referral agencies, with labor unions, with 
organizations providing or administering fringe benefits to employees of 
the recipient, and with organizations providing training and 
apprenticeships.
    (b) Specific activities. The provisions of this subpart apply to:
    (1) Recruitment, advertising, and the processing of applications for 
employment;
    (2) Hiring, upgrading, promotion, award of tenure, demotion, 
transfer, layoff, termination, right of return from layoff, and 
rehiring;
    (3) Rates of pay or any other form of compensation and changes in 
compensation;
    (4) Job assignments, job classifications, organizational structures, 
position descriptions, lines of progression, and seniority lists;
    (5) Leaves of absence, sick leave, or any other leave;

[[Page 237]]

    (6) Fringe benefits available by virtue of employment, whether or 
not administered by the recipient;
    (7) Selection and financial support for training, including 
apprenticeship, professional meetings, conferences, and other related 
activities, and selection for leaves of absence to pursue training;
    (8) Employer sponsored activities, including those that are social 
or recreational; and
    (9) Any other term, condition, or privilege of employment.
    (c) A recipient's obligation to comply with this subpart is not 
affected by any inconsistent term of any collective bargaining agreement 
to which it is a party.
    (d) A recipient may not participate in a contractual or other 
relationship that has the effect of subjecting qualified handicapped 
applicants or employees to discrimination prohibited by this subpart. 
The relationships referred to in this paragraph include relationships 
with employment and referral agencies, with labor unions, with 
organizations providing or administering fringe benefits to employees of 
the recipient, and with organizations providing training and 
apprenticeships.

[51 FR 26862, July 28, 1986, as amended at 68 FR 51351, Aug. 26, 2003]



Sec. 1251.201  Reasonable accommodation.

    (a) A recipient shall make reasonable accommodation to the known 
physical or mental limitations of an otherwise qualified handicapped 
applicant or employee unless the recipient can demonstrate that the 
accommodation would impose an undue hardship on the operation of its 
program or activity.
    (b) Reasonable accommodation may include:
    (1) Making facilities used by employees readily accessible to and 
usable by handicapped persons; and
    (2) Job restructuring, part-time or modified work schedules, 
acquisition or modification of equipment or devices, the provision of 
readers or interpreters, and other similar actions.
    (c) In determining pursuant to paragraph (a) of this section whether 
an accommodation would impose an undue hardship on the operation of a 
recipient's programor activity, factors to be considered include:
    (1) The overall size of the recipient's program or activity with 
respect to number of employees, number and type of facilities, and size 
of budget;
    (2) The type of the recipient's operation, including the composition 
and structure of the recipient's workforce; and
    (3) The nature and cost of the accommodation needed.
    (d) A recipient may not deny any employment opportunity to a 
qualified handicapped employee or applicant if the basis for the denial 
is the need to make reasonable accommodation to the physical or mental 
limitations of the employee or applicant.

[51 FR 26862, July 28, 1986, as amended at 68 FR 51351, Aug. 26, 2003]



Sec. 1251.202  Employment criteria.

    (a) A recipient may not make use of any employment test or other 
selection criterion that screens out or tends to screen out handicapped 
persons or any class of handicapped persons unless:
    (1) The test score or other selection criterion, as used by the 
recipient, is shown to be job-related for the position in question; and
    (2) Alternative job-related tests of criteria that do not screen out 
or tend to screen out as many handicapped persons are not shown by the 
Assistant Administrator to be available.
    (b) A recipient shall select and administer tests concerning 
employment so as best to ensure that, when administered to an applicant 
or employee who has a handicap that impairs sensory, manual, or speaking 
skills, the test results accurately reflect the applicant's or 
employee's job skills, aptitude, or whatever other factor the test 
purports to measure, rather than reflecting the applicant's or 
employee's impaired sensory, manual, or speaking skills (except where 
those skills are the factors that the test purports to measure).



Sec. 1251.203  Preemployment inquiries.

    (a) Except as provided in paragraphs (b) and (c) of this section, a 
recipient may not conduct a preemployment medical examination or may not 
make preemployment inquiry of an applicant

[[Page 238]]

as to whether the applicant is a handicapped person or as to the nature 
or severity of a handicap. A recipient may, however, make preemployment 
inquiry into an applicant's ability to perform job-related functions.
    (b) When a recipient is taking remedial action to correct the 
effects of past discrimination pursuant to Sec. 1251.105(a), when a 
recipient is taking voluntary action to overcome the effects of 
conditions that resulted in limited participation in its Federally 
assisted program or activity pursuant to Sec. 1251.105(b), or when a 
recipient is taking affirmative action pursuant to section 504 of the 
Act, the recipient may invite applicants for employment to indicate 
whether and to what extent they are handicapped, provided that:
    (1) The recipient states clearly on any written questionnaire used 
for this purpose or makes clear orally if no written questionnaire is 
used that the information requested is intended for use solely in 
connection with its remedial action obligations or its voluntary of 
affirmative action efforts; and
    (2) The recipient states clearly that the information is being 
requested on a voluntary basis, that it will be kept confidential as 
provided in paragraph (d) of this section, that refusal to provide it 
will not subject the applicant or employee to any adverse treatment, and 
that it will be used only in accordance with this part.
    (c) Nothing in this section shall prohibit a recipient from 
conditioning an offer of employment on the results of a medical 
examination conducted prior to the employee's entrance on duty, provided 
that:
    (1) All entering employees are subjected to such an examination 
regardless of handicap; and
    (2) The results of such an examination are used only in accordance 
with the requirements of this part.
    (d) Information obtained in accordance with this section as to the 
medical condition or history of the applicant shall be collected and 
maintained on separate forms that shall be accorded confidentiality as 
medical records, except that:
    (1) Supervisors and managers may be informed regarding restrictions 
on the work or duties of handicapped persons and regarding necessary 
accommodations;
    (2) First aid and safety personnel may be informed, where 
appropriate, if the condition might require emergency treatment; and
    (3) Government officials investigating compliance with the Act shall 
be provided relevant information upon request.



                      Subpart 1251.3--Accessibility



Sec. 1251.300  Discrimination prohibited.

    No qualified handicapped person shall, because a recipient's 
facilities are inaccessible to or unusable by handicapped persons, be 
denied the benefits of, be excluded from participation in, or otherwise 
be subjected to discrimination under any program or activity to which 
this part applies.



Sec. 1251.301  Existing facilities.

    (a) Accessibility. A recipient shall operate each program or 
activity to which his part applies so that when each part is viewed in 
its entirety it is readily accessible to handicapped persons. This 
paragraph does not require a recipient to make each of its existing 
facilities or every part of a facility accessible to and usable by 
handicapped persons.
    (b) Methods. A recipient may comply with the requirement of 
paragraph (a) of this section through such means as redesign of 
equipment; reassignment of classes or other services to accessible 
buildings; assignment of aides to beneficiaries; home visits; delivery 
of health, welfare, or other social services at alternate accessible 
sites; alteration of existing facilities and construction of new 
facilities in conformance with the requirements of Sec. 1251.302; or 
any other methods that result in making its program or activity 
accessible to handicapped persons. A recipient is not required to make 
structural changes in existing facilities where other methods are 
effective in achieving compliance with paragraph (a) of this section. In 
choosing among available methods for meeting the requirement of 
paragraph (a) of this section, a recipient shall give priority to those 
methods that serve to handicapped persons in the most integrated setting 
appropriate.

[[Page 239]]

    (c) Time period. A recipient shall comply with the requirement of 
paragraph (a) of this section within 60 days of the effective date of 
this part except that where structural changes in facilities are 
necessary, such changes shall be made within 3 years of the effective 
date of this part, but in any event as expeditiously as possible.
    (d) Transition plan. In the event that structural changes to 
facilities are necessary to meet the requirement of paragraph (a) of 
this section, a recipient shall develop, within 6 months of the 
effective date of this part, a transition plan setting forth the steps 
necessary to complete such changes. The plan shall be developed with the 
assistance of interested persons, including handicapped persons or 
organizations representing handicapped persons. A copy of the transition 
plan shall be made available for public inspection. The plan shall, at a 
minimum:
    (1) Identify physical obstacles in the recipient's facilities that 
limit the accessibility of its program or activity to handicapped 
persons;
    (2) Describe in detail the methods that will be used to make the 
facilities accessible;
    (3) Specify the schedule for taking the steps necessary to achieve 
full accessibility under paragraph (a) of this section and, if the time 
period of the transition plan is longer than 1 year, identify steps that 
will be taken during each year of the transition period; and
    (4) Indicate the person responsible for implementation of the plan.
    (e) Notice. The recipient shall adopt and implement procedures to 
ensure that interested persons, including persons with inpaired vision 
or hearing, can obtain information as to the existence and location of 
services, activities, and facilities that are accessible to and usable 
by handicapped persons.

[51 FR 26862, July 28, 1986, as amended at 68 FR 51351, Aug. 26, 2003]



Sec. 1251.302  New construction.

    (a) Design and construction. Each facility or part of a facility 
constructed by, on behalf of, or for the use of a recipient shall be 
designed and constructed in such manner that the facility or part of the 
facility is readily accessible to and usable by handicapped persons, if 
the construction (ground breaking) was commenced after the effective 
date of this part.
    (b) Alteration. Each facility or part of a facility which is altered 
by, on behalf of, or for the use of a recipient after the effective date 
of this part in a manner that affects or could affect the usability of 
the facility or part of the facility shall, to the maximum extent 
feasible, be altered in such manner that the altered portion of the 
facility is readily accessible to and usable by handicapped persons.
    (c) Conformance with Uniform Federal Accessibility Standards. (1) 
Effective as of January 18, 1991, design, construction, or alteration of 
buildings in conformance with sections 3-8 of the Uniform Federal 
Accessibility Standards (USAF) (appendix A to 41 CFR subpart 101-19.6) 
shall be deemed to comply with the requirements of this section with 
respect to those buildings. Departures from particular technical and 
scoping requirements of UFAS by the use of other methods are permitted 
where substantially equivalent or greater access to and usability of the 
building is provided.
    (2) For purposes of this section, section 4.1.6(1)(g) of UFAS shall 
be interpreted to exempt from the requirements of UFAS only mechanical 
rooms and other spaces that, because of their intended use, will not 
require accessibility to the public or beneficiaries or result in the 
employment or residence therein of persons with physical handicaps.
    (3) This section does not require recipients to make building 
alterations that have little likelihood of being accomplished without 
removing or altering a load-bearing structural member.

[51 FR 26862, July 28, 1986, as amended at 55 FR 52138, 52140, Dec. 19, 
1990]



                       Subpart 1251.4--Procedures



Sec. 1251.400  Procedures for compliance.

    The procedural provisions applicable to Title VI of the Civil Rights 
Act of 1964 apply to this part. These procedures are found in Sec. Sec. 
1250.106, 1250.108 and 1250.110 of this chapter.

[[Page 240]]



    Subpart 1251.5--Enforcement of Nondiscrimination on the Basis of 
Handicap in Programs or Activities Conducted by the National Aeronautics 
                        and Space Administration

    Source: 53 FR 25882 and 25885, July 8, 1988, unless otherwise noted.



Sec. 1251.501  Purpose.

    The purpose of this regulation is to effectuate section 119 of the 
Rehabilitation, Comprehensive Services, and Developmental Disabilities 
Amendments of 1978, which amended section 504 of the Rehabilitation Act 
of 1973 to prohibit discrimination on the basis of handicap in programs 
or activities conducted by Executive agencies or the United States 
Postal Service.



Sec. 1251.502  Application.

    This regulation (Sec. Sec. 1251.501-1251.570) applies to all 
programs or activities conducted by the agency, except for programs or 
activities conducted outside the United States that do not involve 
individuals with handicaps in the United States.



Sec. 1251.503  Definitions.

    For purposes of this regulation, the term--
    Assistant Attorney General means the Assistant Attorney General, 
Civil Rights Division, United States Department of Justice.
    Auxiliary aids means services or devices that enable persons with 
impaired sensory, manual, or speaking skills to have an equal 
opportunity to participate in, and enjoy the benefits of, programs or 
activities conducted by the agency. For example, auxiliary aids useful 
for persons with impaired vision include readers, Brailled materials, 
audio recordings, and other similar services and devices. Auxiliary aids 
useful for persons with impaired hearing include telephone handset 
amplifiers, telephones compatible with hearing aids, telecommunication 
devices for deaf persons (TDD's), interpreters, notetakers, written 
materials, and other similar services and devices.
    Complete complaint means a written statement that contains the 
complainant's name and address and describes the agency's alleged 
discriminatory action in sufficient detail to inform the agency of the 
nature and date of the alleged violation of section 504. It shall be 
signed by the complainant or by someone authorized to do so on his or 
her behalf. Complaints filed on behalf of classes or third parties shall 
describe or identify (by name, if possible) the alleged victims of 
discrimination.
    Facility means all or any portion of buildings, structures, 
equipment, roads, walks, parking lots, rolling stock or other 
conveyances, or other real or personal property.
    Historic preservation programs means programs conducted by the 
agency that have preservation of historic properties as a primary 
purpose.
    Historic properties means those properties that are listed or 
eligible for listing in the National Register of Historic Places or 
properties designated as historic under a statute of the appropriate 
State or local government body.
    Individual with handicaps means any person who has a physical or 
mental impairment that substantially limits one or more major life 
activities, has a record of such an impairment, or is regarded as having 
such an impairment.
    As used in this definition, the phrase:
    (1) Physical or mental impairment includes--
    (i) Any physiological disorder or condition, cosmetic disfigurement, 
or anatomical loss affecting one or more of the following body systems: 
Neurological; musculoskeletal; special sense organs; respiratory, 
including speech organs; cardiovascular; reproductive; digestive; 
genitourinary; hemic and lymphatic; skin; and endocrine; or
    (ii) Any mental or psychological disorder, such as mental 
retardation, organic brain syndrome, emotional or mental illness, and 
specific learning disabilities. The term physical or mental impairment 
includes, but is not limited to, such diseases and conditions as 
orthopedic, visual, speech, and hearing impairments, cerebral palsy, 
epilepsy, muscular dystrophy, multiple sclerosis, cancer, heart disease, 
diabetes, mental retardation, emotional illness, and drug addiction and 
alcoholism.

[[Page 241]]

    (2) Major life activities includes functions such as caring for 
one's self, performing manual tasks, walking, seeing, hearing, speaking, 
breathing, learning, and working.
    (3) Has a record of such an impairment means has a history of, or 
has been misclassified as having, a mental or physical impairment that 
substantially limits one or more major life activities.
    (4) Is regarded as having an impairment means--
    (i) Has a physical or mental impairment that does not substantially 
limit major life activities but is treated by the agency as constituting 
such a limitation;
    (ii) Has a physical or mental impairment that substantially limits 
major life activities only as a result of the attitudes of others toward 
such impairment; or
    (iii) Has none of the impairments defined in paragraph (1) of this 
definition but is treated by the agency as having such an impairment.
    Qualified individual with handicaps means--
    (1) With respect to preschool, elementary, or secondary education 
services provided by the agency, an individual with handicaps who is a 
member of a class of persons otherwise entitled by statute, regulation, 
or agency policy to receive education services from the agency;
    (2) With respect to any other agency program or activity under which 
a person is required to perform services or to achieve a level of 
accomplishment, an individual with handicaps who meets the essential 
eligibility requirements and who can achieve the purpose of the program 
or activity without modifications in the program or activity that the 
agency can demonstrate would result in a fundamental alteration in its 
nature;
    (3) With respect to any other program or activity, an individual 
with handicaps who meets the essential eligibility requirements for 
participation in, or receipt of benefits from, that program or activity; 
and
    (4) Qualified handicapped person as that term is defined for 
purposes of employment in 29 CFR 1613.702(f), which is made applicable 
to this regulation by Sec. 1251.540.
    Section 504 means section 504 of the Rehabilitation Act of 1973 
(Pub. L. 93-112, 87 Stat. 394 (29 U.S.C. 794)), as amended by the 
Rehabilitation Act Amendments of 1974 (Pub. L. 93-516, 88 Stat. 1617); 
the Rehabilitation, Comprehensive Services, and Developmental 
Disabilities Amendments of 1978 (Pub. L. 95-602, 92 Stat. 2955); and the 
Rehabilitation Act Amendments of 1986 (Pub. L. 99-506, 100 Stat. 1810). 
As used in this regulation, section 504 applies only to programs or 
activities conducted by Executive agencies and not to federally assisted 
programs.
    Substantial impairment means a significant loss of the integrity of 
finished materials, design quality, or special character resulting from 
a permanent alteration.



Sec. Sec. 1251.504-1251.509  [Reserved]



Sec. 1251.510  Self-evaluation.

    (a) The agency shall, by September 6, 1989, evaluate its current 
policies and practices, and the effects thereof, that do not or may not 
meet the requirements of this regulation and, to the extent modification 
of any such policies and practices is required, the agency shall proceed 
to make the necessary modifications.
    (b) The agency shall provide an opportunity to interested persons, 
including individuals with handicaps or organizations representing 
individuals with handicaps, to participate in the self-evaluation 
process by submitting comments (both oral and written).
    (c) The agency shall, for at least three years following completion 
of the self-evaluation, maintain on file and make available for public 
inspection:
    (1) A description of areas examined and any problems identified; and
    (2) A description of any modifications made.



Sec. 1251.511  Notice.

    The agency shall make available to employees, applicants, 
participants, beneficiaries, and other interested persons such 
information regarding the provisions of this regulation and its 
applicability to the programs or activities conducted by the agency, and

[[Page 242]]

make such information available to them in such manner as the head of 
the agency finds necessary to apprise such persons of the protections 
against discrimination assured them by section 504 and this regulation.



Sec. Sec. 1251.512-1251.529  [Reserved]



Sec. 1251.530  General prohibitions against discrimination.

    (a) No qualified individual with handicaps shall, on the basis of 
handicap, be excluded from participation in, be denied the benefits of, 
or otherwise be subjected to discrimination under any program or 
activity conducted by the agency.
    (b)(1) The agency, in providing any aid, benefit, or service, may 
not, directly or through contractual, licensing, or other arrangements, 
on the basis of handicap--
    (i) Deny a qualified individual with handicaps the opportunity to 
participate in or benefit from the aid, benefit, or service;
    (ii) Afford a qualified individual with handicaps an opportunity to 
participate in or benefit from the aid, benefit, or service that is not 
equal to that afforded others;
    (iii) Provide a qualified individual with handicaps with an aid, 
benefit, or service that is not as effective in affording equal 
opportunity to obtain the same result, to gain the same benefit, or to 
reach the same level of achievement as that provided to others;
    (iv) Provide different or separate aid, benefits, or services to 
individuals with handicaps or to any class of individuals with handicaps 
than is provided to others unless such action is necessary to provide 
qualified individuals with handicaps with aid, benefits, or services 
that are as effective as those provided to others;
    (v) Deny a qualified individual with handicaps the opportunity to 
participate as a member of planning or advisory boards;
    (vi) Otherwise limit a qualified individual with handicaps in the 
enjoyment of any right, privilege, advantage, or opportunity enjoyed by 
others receiving the aid, benefit, or service.
    (2) The agency may not deny a qualified individual with handicaps 
the opportunity to participate in programs or activities that are not 
separate or different, despite the existence of permissibly separate or 
different programs or activities.
    (3) The agency may not, directly or through contractual or other 
arrangements, utilize criteria or methods of administration the purpose 
or effect of which would--
    (i) Subject qualified individuals with handicaps to discrimination 
on the basis of handicap; or
    (ii) Defeat or substantially impair accomplishment of the objectives 
of a program or activity with respect to individuals with handicaps.
    (4) The agency may not, in determining the site or location of a 
facility, make selections the purpose or effect of which would--
    (i) Exclude individuals with handicaps from, deny them the benefits 
of, or otherwise subject them to discrimination under any program or 
activity conducted by the agency; or
    (ii) Defeat or substantially impair the accomplishment of the 
objectives of a program or activity with respect to individuals with 
handicaps.
    (5) The agency, in the selection of procurement contractors, may not 
use criteria that subject qualified individuals with handicaps to 
discrimination on the basis of handicap.
    (6) The agency may not administer a licensing or certification 
program in a manner that subjects qualified individuals with handicaps 
to discrimination on the basis of handicap, nor may the agency establish 
requirements for the programs or activities of licensees or certified 
entities that subject qualified individuals with handicaps to 
discrimination on the basis of handicap. However, the programs or 
activities of entities that are licensed or certified by the agency are 
not, themselves, covered by this regulation.
    (c) The exclusion of nonhandicapped persons from the benefits of a 
program limited by Federal statute or Executive order to individuals 
with handicaps or the exclusion of a specific class of individuals with 
handicaps from a program limited by Federal statute or Executive order 
to a different class of individuals with handicaps is not prohibited by 
this regulation.

[[Page 243]]

    (d) The agency shall administer programs and activities in the most 
integrated setting appropriate to the needs of qualified individuals 
with handicaps.



Sec. Sec. 1251.531-1251.539  [Reserved]



Sec. 1251.540  Employment.

    No qualified individual with handicaps shall, on the basis of 
handicap, be subject to discrimination in employment under any program 
or activity conducted by the agency. The definitions, requirements, and 
procedures of section 501 of the Rehabilitation Act of 1973 (29 U.S.C. 
791), as established by the Equal Employment Opportunity Commission in 
29 CFR part 1613, shall apply to employment in federally conducted 
programs or activities.



Sec. 1251.541-1251.548  [Reserved]



Sec. 1251.549  Program accessibility: Discrimination prohibited.

    Except as otherwise provided in Sec. 1251.550, no qualified 
individual with handicaps shall, because the agency's facilities are 
inaccessible to or unusable by individuals with handicaps, be denied the 
benefits of, be excluded from participation in, or otherwise be 
subjected to discrimination under any program or activity conducted by 
the agency.



Sec. 1251.550  Program accessibility: Existing facilities.

    (a) General. The agency shall operate each program or activity so 
that the program or activity, when viewed in its entirety, is readily 
accessible to and usable by individuals with handicaps. This paragraph 
does not--
    (1) Necessarily require the agency to make each of its existing 
facilities accessible to and usable by individuals with handicaps;
    (2) In the case of historic preservation programs, require the 
agency to take any action that would result in a substantial impairment 
of significant historic features of an historic property; or
    (3) Require the agency to take any action that it can demonstrate 
would result in a fundamental alteration in the nature of a program or 
activity or in undue financial and administrative burdens. In those 
circumstances where agency personnel believe that the proposed action 
would fundamentally alter the program or activity or would result in 
undue financial and administrative burdens, the agency has the burden of 
proving that compliance with Sec. 1251.550(a) would result in such 
alteration or burdens. The decision that compliance would result in such 
alteration or burdens must be made by the agency head or his or her 
designee after considering all agency resources available for use in the 
funding and operation of the conducted program or activity, and must be 
accompanied by a written statement of the reasons for reaching that 
conclusion. If an action would result in such an alteration or such 
burdens, the agency shall take any other action that would not result in 
such an alteration or such burdens but would nevertheless ensure that 
individuals with handicaps receive the benefits and services of the 
program or activity.
    (b) Methods--(1) General. The agency may comply with the 
requirements of this section through such means as redesign of 
equipment, reassignment of services to accessible buildings, assignment 
of aides to beneficiaries, home visits, delivery of services at 
alternate accessible sites, alteration of existing facilities and 
construction of new facilities, use of accessible rolling stock, or any 
other methods that result in making its programs or activities readily 
accessible to and usable by individuals with handicaps. The agency is 
not required to make structural changes in existing facilities where 
other methods are effective in achieving compliance with this section. 
The agency, in making alterations to existing buildings, shall meet 
accessibility requirements to the extent compelled by the Architectural 
Barriers Act of 1968, as amended (42 U.S.C. 4151-4157), and any 
regulations implementing it. In choosing among available methods for 
meeting the requirements of this section, the agency shall give priority 
to those methods that offer programs and activities to qualified 
individuals with handicaps in the most integrated setting appropriate.
    (2) Historic preservation programs. In meeting the requirements of 
Sec. 1251.550(a) in historic preservation

[[Page 244]]

programs, the agency shall give priority to methods that provide 
physical access to individuals with handicaps. In cases where a physical 
alteration to an historic property is not required because of Sec. 
1251.550(a)(2) or (3), alternative methods of achieving program 
accessibility include--
    (i) Using audio-visual materials and devices to depict those 
portions of an historic property that cannot otherwise be made 
accessible;
    (ii) Assigning persons to guide individuals with handicaps into or 
through portions of historic properties that cannot otherwise be made 
accessible; or
    (iii) Adopting other innovative methods.
    (c) Time period for compliance. The agency shall comply with the 
obligations established under this section by November 7, 1988, except 
that where structural changes in facilities are undertaken, such changes 
shall be made by September 6, 1991, but in any event as expeditiously as 
possible.
    (d) Transition plan. In the event that structural changes to 
facilities will be undertaken to achieve program accessibility, the 
agency shall develop, by March 6, 1989, a transition plan setting forth 
the steps necessary to complete such changes. The agency shall provide 
an opportunity to interested persons, including individuals with 
handicaps or organizations representing individuals with handicaps, to 
participate in the development of the transition plan by submitting 
comments (both oral and written). A copy of the transition plan shall be 
made available for public inspection. The plan shall, at a minimum--
    (1) Identify physical obstacles in the agency's facilities that 
limit the accessibility of its programs or activities to individuals 
with handicaps;
    (2) Describe in detail the methods that will be used to make the 
facilities accessible;
    (3) Specify the schedule for taking the steps necessary to achieve 
compliance with this section and, if the time period of the transition 
plan is longer than one year, identify steps that will be taken during 
each year of the transition period; and
    (4) Indicate the official responsible for implementation of the 
plan.



Sec. 1251.551  Program accessibility: New construction and alterations.

    Each building or part of a building that is constructed or altered 
by, on behalf of, or for the use of the agency shall be designed, 
constructed, or altered so as to be readily accessible to and usable by 
individuals with handicaps. The definitions, requirements, and standards 
of the Architectural Barriers Act (42 U.S.C. 4151-4157), as established 
in 41 CFR 101-19.600 to 101-19.607, apply to buildings covered by this 
section.



Sec. Sec. 1251.552-1251.559  [Reserved]



Sec. 1251.560  Communications.

    (a) The agency shall take appropriate steps to ensure effective 
communication with applicants, participants, personnel of other Federal 
entities, and members of the public.
    (1) The agency shall furnish appropriate auxiliary aids where 
necessary to afford an individual with handicaps an equal opportunity to 
participate in, and enjoy the benefits of, a program or activity 
conducted by the agency.
    (i) In determining what type of auxiliary aid is necessary, the 
agency shall give primary consideration to the requests of the 
individual with handicaps.
    (ii) The agency need not provide individually prescribed devices, 
readers for personal use or study, or other devices of a personal 
nature.
    (2) Where the agency communicates with applicants and beneficiaries 
by telephone, telecommunication devices for deaf persons (TDD's) or 
equally effective telecommunication systems shall be used to communicate 
with persons with impaired hearing.
    (b) The agency shall ensure that interested persons, including 
persons with impaired vision or hearing, can obtain information as to 
the existence and location of accessible services, activities, and 
facilities.
    (c) The agency shall provide signage at a primary entrance to each 
of its inaccessible facilities, directing users to a location at which 
they can obtain information about accessible facilities.

[[Page 245]]

The international symbol for accessibility shall be used at each primary 
entrance of an accessible facility.
    (d) This section does not require the agency to take any action that 
it can demonstrate would result in a fundamental alteration in the 
nature of a program or activity or in undue financial and administrative 
burdens. In those circumstances where agency personnel believe that the 
proposed action would fundamentally alter the program or activity or 
would result in undue financial and administrative burdens, the agency 
has the burden of proving that compliance with Sec. 1251.560 would 
result in such alteration or burdens. The decision that compliance would 
result in such alteration or burdens must be made by the agency head or 
his or her designee after considering all agency resources available for 
use in the funding and operation of the conducted program or activity 
and must be accompanied by a written statement of the reasons for 
reaching that conclusion. If an action required to comply with this 
section would result in such an alteration or such burdens, the agency 
shall take any other action that would not result in such an alteration 
or such burdens but would nevertheless ensure that, to the maximum 
extent possible, individuals with handicaps receive the benefits and 
services of the program or activity.



Sec. Sec. 1251.561-1251.569  [Reserved]



Sec. 1251.570  Compliance procedures.

    (a) Except as provided in paragraph (b) of this section, this 
section applies to all allegations of discrimination on the basis of 
handicap in programs and activities conducted by the agency.
    (b) The agency shall process complaints alleging violations of 
section 504 with respect to employment according to the procedures 
established by the Equal Employment Opportunity Commission in 29 CFR 
part 1613 pursuant to section 501 of the Rehabilitation Act of 1973 (29 
U.S.C. 791).
    (c) The Assistant Administrator for Equal Opportunity Programs shall 
be responsible for coordinating implementation of this section. 
Complaints may be sent to the Office of Equal Opportunity Programs, Room 
6119, 400 Maryland Avenue, SW., Washington, DC 20546.
    (d) The agency shall accept and investigate all complete complaints 
for which it has jurisdiction. All complete complaints must be filed 
within 180 days of the alleged act of discrimination. The agency may 
extend this time period for good cause.
    (e) If the agency receives a complaint over which it does not have 
jurisdiction, it shall promptly notify the complainant and shall make 
reasonable efforts to refer the complaint to the appropriate Government 
entity.
    (f) The agency shall notify the Architectural and Transportation 
Barriers Compliance Board upon receipt of any complaint alleging that a 
building or facility that is subject to the Architectural Barriers Act 
of 1968, as amended (42 U.S.C. 4151-4157), is not readily accessible to 
and usable by individuals with handicaps.
    (g) Within 180 days of the receipt of a complete complaint for which 
it has jurisdiction, the agency shall notify the complainant of the 
results of the investigation in a letter containing--
    (1) Findings of fact and conclusions of law;
    (2) A description of a remedy for each violation found; and
    (3) A notice of the right to appeal.
    (h) Appeals of the findings of fact and conclusions of law or 
remedies must be filed by the complainant within 90 days of receipt from 
the agency of the letter required by Sec. 1251.570(g). The agency may 
extend this time for good cause.
    (i) Timely appeals shall be accepted and processed by the head of 
the agency.
    (j) The head of the agency shall notify the complainant of the 
results of the appeal within 60 days of the receipt of the request. If 
the head of the agency determines that additional information is needed 
from the complainant, he or she shall have 60 days from the date of 
receipt of the additional information to make his or her determination 
on the appeal.
    (k) The time limits cited in paragraphs (g) and (j) of this section 
may be extended with the permission of the Assistant Attorney General.

[[Page 246]]

    (l) The agency may delegate its authority for conducting complaint 
investigations to other Federal agencies, except that the authority for 
making the final determination may not be delegated to another agency.

[53 FR 25882 and 25885, July 8, 1989]



Sec. Sec. 1251.571-1251.999  [Reserved]



PART 1252--NONDISCRIMINATION ON THE BASIS OF AGE IN PROGRAMS OR ACTIVITIES RECEIVING FEDERAL FINANCIAL ASSISTANCE--Table of Contents




                         Subpart 1252.1--General

Sec.
1252.100 What is the purpose of NASA's age discrimination regulations?
1252.102 To what programs or activities do these regulations apply?
1252.103 Definitions.

      Subpart 1252.2--Standards for Determining Age Discrimination

1252.200 Rules against age discrimination.
1252.201 Exceptions to the rules against age discrimination.
1252.202 Burden of proof.
1252.203 Special benefits for children and the elderly.

             Subpart 1252.3--Responsibilities of Recipients

1252.300 General responsibilities of recipients.
1252.301 Notice to subrecipients.
1252.302 Assurance of compliance and recipient assessment of age 
          distinctions.
1252.303 Information requirements.

 Subpart 1252.4--Investigation, Conciliation, and Enforcement Procedures

1252.400 Compliance reviews.
1252.401 Complaints.
1252.402 Mediation.
1252.403 Investigation.
1252.404 Prohibition against intimidation or retaliation.
1252.405 Compliance procedure.
1252.406 Hearings.
1252.407 Notices, decisions, and post-termination proceedings.
1252.408 Remedial action by recipients.
1252.409 Alternate funds disbursal procedure.
1252.410 Exhaustion of administrative remedies.
1252.411 Age distinctions.

    Authority: Age Discrimination Act of 1975, as amended, 42 U.S.C. 
6101 et seq. (45 CFR part 90).

    Source: 50 FR 13311, Apr. 4, 1985, unless otherwise noted.



                         Subpart 1252.1--General



Sec. 1252.100  What is the purpose of NASA's age discrimination regulations?

    The purpose of these regulations is to set out NASA's policies and 
to implement agencywide or agency procedures under the Age 
Discrimination Act of 1975 according to the government-wide age 
discrimination regulations at 45 CFR part 90. (Published at 44 FR 33768, 
June 12, 1979.) The Act and the government-wide regulations prohibit 
discrimination on the basis of age in programs or activities receiving 
Federal financial assistance. The Act and the governmentwide regulations 
permit federally assisted programs or activities and recipients of 
Federal funds, to continue to use age distinctions and factors other 
than age which meet the requirements of the Act and the governmentwide 
regulations.

[50 FR 13311, Apr. 4, 1985, as amended at 68 FR 51352, Aug. 26, 2003]



Sec. 1252.102  To what programs or activities do these regulations apply?

    (a) These regulations apply to each NASA recipient and to each 
program or activity operated by the recipient which receives Federal 
financial assistance provided by NASA.
    (b) The Age Discrimination Act of 1975 does not apply to:
    (1) An age distinction contained in that part of a Federal, State, 
or local statute or ordinance adopted by an elected body which:
    (i) Provides any benefits or assistance to persons based on age; or
    (ii) Establishes criteria for participation in age-related terms; or
    (iii) Describes intended beneficiaries or target groups in age-
related terms.
    (2) Any employment practice of any employer, employment agency, 
labor organization, or any labor-management joint apprenticeship 
training program, except for any program or activity receiving Federal 
financial assistance for public service employment

[[Page 247]]

under the Comprehensive Employment and Training Act of 1974 (CETA) (29 
U.S.C. 801 et seq.).

[50 FR 13311, Apr. 4, 1985, as amended at 68 FR 51352, Aug. 26, 2003]



Sec. 1252.103  Definitions.

    As used in these regulations, the term:
    (a) Act means the Age Discrimination Act of 1975, as amended. (Title 
III of Pub. L. 94-135.)
    (b) Action means any act, activity, policy, rule, standard, or 
method of administration; or the use of any policy, rule, standard, or 
method of administration.
    (c) Age means how old a person is, or the number of elapsed years 
from the date of a person's birth.
    (d) Age distinction means any action using age or an age-related 
term.
    (e) Age-related term means a word or words which necessarily imply a 
particular age or range of ages (for example, ``children,'' ``adult,'' 
``older persons,'' but not ``student'').
    (f) Discrimination means unlawful treatment based on age.
    (g) NASA means the National Aeronautics and Space Administration.
    (h) Federal financial assistance means any grant, entitlement, loan, 
cooperative agreement contract (other than a procurement contract or a 
contract of insurance or guaranty), or any other arrangement by which 
the agency provides or otherwise makes available assistance in the form 
of:
    (1) Funds;
    (2) Services of Federal personnel; or interest in or use of 
property, including:
    (i) Transfer or lease of property for less than fair market value or 
for reduced consideration; and
    (ii) Proceeds from a subsequent transfer or lease of property if the 
Federal share of its fair market value is not returned to the Federal 
Government.
    (i) FMCS means the Federal Mediation and Conciliation Service.
    (j) Recipient means any State or its political subdivision, any 
instrumentality of a State or its political subdivision, any public or 
private agency, institution, organization, or other entity, or any 
person to which Federal financial assistance is extended, directly or 
through another recipient. Recipient includes any successor, assignee, 
or transferee, but excludes the ultimate beneficiary of the assistance.
    (k) Administrator means the Administrator of the National 
Aeronautics and Space Administration or designee.
    (l) Subrecipient means any of the entities in the definition of 
``recipient'' to which a recipient extents or passes on Federal 
financial assistance. A subrecipient is generally regarded as a 
recipient of Federal financial assistance and has all the duties of a 
recipient in these regulations.
    (m) United States means the 50 States, the District of Columbia, 
Puerto Rico, the Virgin Islands, American Samoa, Guam, Wake Island, the 
Canal Zone, the Trust Territory of the Pacific Islands, the Northern 
Marianas, and the territories and possessions of the United States.
    (n) Program or activity means all of the operations of any entity 
described in paragraphs (n)(1) through (4) of this section, any part of 
which is extended Federal financial assistance:
    (1)(i) A department, agency, special purpose district, or other 
instrumentality of a State or of a local government; or
    (ii) The entity of such State or local government that distributes 
such assistance and each such department or agency (and each other State 
or local government entity) to which the assistance is extended, in the 
case of assistance to a State or local government;
    (2)(i) A college, university, or other postsecondary institution, or 
a public system of higher education; or
    (ii) A local educational agency (as defined in 20 U.S.C. 7801), 
system of vocational education, or other school system;
    (3)(i) An entire corporation, partnership, or other private 
organization, or an entire sole proprietorship--
    (A) If assistance is extended to such corporation, partnership, 
private organization, or sole proprietorship as a whole; or
    (B) Which is principally engaged in the business of providing 
education, health care, housing, social services, or parks and 
recreation; or

[[Page 248]]

    (ii) The entire plant or other comparable, geographically separate 
facility to which Federal financial assistance is extended, in the case 
of any other corporation, partnership, private organization, or sole 
proprietorship; or
    (4) Any other entity which is established by two or more of the 
entities described in paragraph (n)(1), (2), or (3) of this section.

[50 FR 13311, Apr. 4, 1985, as amended at 68 FR 51351, Aug. 26, 2003]



      Subpart 1252.2--Standards for Determining Age Discrimination



Sec. 1252.200  Rules against age discrimination.

    The rules stated in this section are limited by the exceptions 
contained in Sec. 1252.201.
    (a) General rule: No person in the United States shall, on the basis 
of age be excluded from participation in, be denied the benefits of, or 
be subjected to discrimination under any program or activity receiving 
Federal financial assistance.
    (b) Specific rules: A recipient may not, in any program or activity 
receiving Federal financial assistance, directly or through contractual, 
licensing, or other arrangements use age distinctions or take any other 
actions which have the effect, on the basis of age, of:
    (1) Excluding individuals from, denying them the benefits of, or 
subjecting them to discrimination under a program or activity receiving 
Federal financial assistance; or
    (2) Denying or limiting individuals in their opportunity to 
participate in any program or activity receiving Federal financial 
assistance.
    (c) The specific forms of age discrimination listed in paragraph (b) 
of this section do not necessarily constitute a complete list.



Sec. 1252.201  Exceptions to the rules against age discrimination.

    (a) Definitions. For purposes of this section, the terms normal 
operation and statutory objective shall have the following meaning:
    (1) Normal operation means the operation of a program or activity 
without significant changes that would impair its ability to meet its 
objectives.
    (2) Statutory objective means any purpose of a program or activity 
expressly stated in any Federal statute, state statute or local statute 
or ordinance adopted by any elected, general purpose legislative body.
    (b) Normal operation or statutory objective of any program or 
activity. A recipient is permitted to take an action otherwise 
prohibited by Sec. 1252.200 if the action reasonably takes into account 
age as a factor necessary to the normal operation of the achievement of 
any statutory objective of a program or activity. An action reasonably 
takes into account age as a factor necessary to the normal operation or 
the achievement of any statutory objective of a program or activity, if:
    (1) Age is used as a measure of approximation of one or more other 
characteristics; and
    (2) The other characteristic(s) must be measured or approximated in 
order for the normal operation of the program or activity to continue, 
or to achieve any statutory objective of the program or activity; and
    (3) The other characteristic(s) can be reasonably measured or 
approximated by the use of age; and
    (4) The other characteristic(s) are impractical to measure directly 
on an individual basis.
    (c) Reasonable factors other than age. A recipient is permitted to 
take an action otherwise prohibited by Sec. 1252.200 which is based on 
a factor other than age, even though that action may have a 
disproportionate effect on persons of different ages. An action may be 
based on a factor other than age only if the factor bears a direct and 
substantial relationship to the normal operation of the program or 
activity or to the achievement of a statutory objective.



Sec. 1252.202  Burden of proof.

    The burden of proving that an age distinction or other action falls 
within the exceptions outlined in Sec. 1252.201 (b) and (c) is on the 
recipient of Federal financial assistance.



Sec. 1252.203  Special benefits for children and the elderly.

    If a recipient operating a program or activity provides special 
benefits to

[[Page 249]]

the elderly or to children, such use of age distinctions shall be 
presumed to be necessary to the normal operation of the program or 
activity, notwithstanding the provision of Sec. 1252.10.

[50 FR 13311, Apr. 4, 1985, as amended at 68 FR 51352, Aug. 26, 2003]



             Subpart 1252.3--Responsibilities of Recipients



Sec. 1252.300  General responsibilities of recipients.

    Each NASA recipient must ensure that its programs or activities 
comply with these regulations.

[50 FR 13311, Apr. 4, 1985, as amended at 68 FR 51352, Aug. 26, 2003]



Sec. 1252.301  Notice to subrecipients.

    Where a recipient passes on Federal financial assistance from NASA 
to subrecipients, the recipient shall provide the subrecipient written 
notice of their obligations under these regulations.



Sec. 1252.302  Assurance of compliance and recipient assessment of age distinctions.

    (a) Each recipient of Federal financial assistance from NASA shall 
sign a written assurance as specified by NASA that it will comply with 
the Act and these regulations.
    (b) Recipient assessment of age distinctions. (1) As part of a 
compliance review under Sec. 91.41, NASA may require a recipient 
employing the equivalent of 15 or more employees to complete a written 
self-evaluation, in a manner specified by the responsible Agency 
official, of any age distinction imposed in its program or activity 
receiving Federal financial assistance from NASA to assess the 
recipient's compliance with the Act.
    (2) Whenever an assessment indicates a violation of the Act and the 
NASA regulations, the recipient shall take corrective action.



Sec. 1252.303  Information requirements.

    (a) Keep records in a form that contains information which NASA 
determines may be necessary to ascertain whether the recipient is 
complying with the Act and these regulations.
    (b) Provide to NASA, upon request, information and reports which 
NASA determines are necessary to ascertain whether the recipient is 
complying with the Act and these regulations.
    (c) Permit reasonable access by NASA to the books, records, 
accounts, and other recipient facilities and sources of information to 
the extent NASA determines is necessary to ascertain whether the 
recipient is complying with the Act and these regulations.



 Subpart 1252.4--Investigation, Conciliation, and Enforcement Procedures



Sec. 1252.400  Compliance reviews.

    (a) NASA may conduct compliance reviews and pre-award reviews of 
recipients or use other similar procedures that will permit it to 
investigate and correct violations of the Act and these regulations. 
NASA may conduct these reviews even in the absence of a complaint 
against a recipient. The review may be as comprehensive as necessary to 
determine whether a violation of these regulations has occurred.
    (b) If a compliance review or pre-award review indicates a violation 
of the Act or these regulations, NASA will attempt to secure the 
recipient's voluntary compliance with the Act. If voluntary compliance 
cannot be achieved, NASA will arrange for enforcement as described in 
Sec. 1252.405.



Sec. 1252.401  Complaints.

    (a) Any person, individually or as a member of a class or on behalf 
of others, may file a complaint with NASA, alleging discrimination 
prohibited by the Act or these regulations based on an action occurring 
on or after July 1, 1979. A complaint must be filed within 180 days from 
the date the complainant first had knowledge of the alleged act of 
discrimination. However, for good cause shown, NASA may extend this time 
limit.
    (b) NASA will attempt to facilitate the filing of complaints 
wherever possible, including taking the following measures:
    (1) Accepting as a sufficient complaint, any written statement, 
which identifies the parties involved and the

[[Page 250]]

date the complainant first had knowledge of the alleged violation, 
describes generally the action or practice complained of, and assigned 
by the complainant.
    (2) Freely permitting a complainant to add information to the 
complaint to meet the requirements of a sufficient complaint.
    (3) Widely disseminating information regarding the obligations of 
recipients under the Act and these regulations.
    (4) Notifying the complainant and the recipient of their rights and 
obligations under the complaint procedure, including the right to have a 
representative at all stages of the complaint procedure.
    (5) Notifying the complainant and the recipient (or their 
representatives) of their right to contact NASA for information and 
assistance regarding the complaint resolution process.
    (c) NASA will return to the complainant any complaint outside the 
jurisdiction of these regulations, and will state the reason(s) why it 
is outside the jurisdiction of these regulations.



Sec. 1252.402  Mediation.

    (a) Referral of complaints for mediation. NASA will refer to the 
Federal Mediation and Conciliation Service all complaints that:
    (1) Fall within the jurisdiction of the Act and these regulations; 
and
    (2) Contain all information necessary for further processing.
    (b) Both the complainant and the recipient shall participate in the 
mediation process to the extent necessary to reach an agreement or make 
an informed judgment that an agreement is not possible. There must be at 
least one meeting with the mediator before NASA will accept a judgment 
that an agreement is not possible. However, the recipient and the 
complainant need not meet with the mediator at the same time.
    (c) If the complainant and the recipient reach an agreement, the 
mediator shall prepare a written statement of the agreement and have the 
complainant and recipient sign it. The mediator shall send a copy of the 
agreement to NASA. NASA will take no further action on the complaint 
unless the complainant or the recipient fails to comply with the 
agreement. However, NASA retains the right to monitor the recipient's 
compliance with the agreement.
    (d) The mediator shall protect the confidentiality of all 
information obtained in the course of the mediation process. No mediator 
shall testify in any adjudicative proceeding, produce any document, or 
otherwise disclose any information obtained in the course of the 
mediation process without prior approval of the head of the mediation 
agency.
    (e) NASA will use the mediation process for a maximum of 60 days 
after receiving a complaint.
    (f) Mediation ends if:
    (1) 60 days elapse from the time NASA receives the complaint; or
    (2) Prior to the end of that 60-day period, an agreement is reached; 
or
    (3) Prior to the end of that 60-day period, the mediator determines 
that an agreement cannot be reached.
    (g) The mediator shall return unresolved complaints to NASA.



Sec. 1252.403  Investigation.

    (a) Informal inquiry. (1) NASA will investigate complaints that are 
unresolved after mediation or are reopened because of a violation of a 
mediation agreement.
    (2) As part of the initial inquiry, NASA will use informal fact 
finding methods, including joint or separate discussions with the 
complainant and recipient to establish the facts, and, if possible, 
settle the complaint on terms that are mutually agreeable to the 
parties. NASA may seek the assistance of any involved State agency.
    (3) NASA will put any agreement in writing and have it signed by the 
parties and an authorized official at NASA.
    (4) The settlement shall not affect the operation of any other 
enforcement effort of NASA, including compliance reviews and 
investigation of other complaints which may involve the recipient.
    (5) The settlement is not a finding of discrimination against a 
recipient.
    (b) Formal investigation. If NASA cannot resolve the complaint 
through informal means it will develop formal findings through further 
investigations

[[Page 251]]

of the complaint. If the investigation indicates a violation of these 
regulations, NASA will attempt to obtain voluntary compliance. If NASA 
cannot obtain voluntary compliance, it will begin enforcement as 
described in Sec. 1252.405.

[50 FR 13311, Apr. 4, 1985, as amended at 68 FR 51352, Aug. 26, 2003]



Sec. 1252.404  Prohibition against intimidation or retaliation.

    A recipient may not engage in acts of intimidation or retaliation 
against any person who:
    (a) Attempts to assert a right protected by the Act or these 
regulations; or
    (b) Cooperates in any mediation, inquiry, hearing, or other part of 
NASA's investigation, conciliation, and enforcement process.



Sec. 1252.405  Compliance procedure.

    (a) NASA may enforce the Act and these regulations through:
    (1) Termination of a recipient's Federal financial assistance from 
NASA under the program or activity involved where the recipient has 
violated the Act or these regulations. The determination of the 
recipient's violation may be made only after a recipient has had an 
opportunity for a hearing on the record before an administrative law 
judge. Therefore, cases which are settled in mediation, or prior to a 
hearing, will not involve termination of a recipient's Federal financial 
assistance from NASA.
    (2) Any other means authorized by law including but not limited to:
    (i) Referral to the Department of Justice for proceedings to enforce 
any rights of the United States or obligations of the recipient created 
by the Act or these regulations.
    (ii) Use of any requirement of or referral to any Federal, State, or 
local government agency that will have the effect of correcting a 
violation of the Act or these regulations.
    (b) NASA will limit any termination under Sec. 1252.405(a)(1) to 
the particular program or activity NASA finds in violations of these 
regulations. NASA will not base any part of a termination on a finding 
with respect to any program or activity of the recipient which does not 
receive Federal financial assistance from NASA.
    (c) NASA will take no action under paragraph (a) until:
    (1) The Administrator has advised the recipient of its failure to 
comply with the Act and these regulations and has determined that 
voluntary compliance cannot be obtained.
    (2) 30 days have elapsed after the Administrator has sent a written 
report of the circumstances and grounds of the action to the committees 
of Congress having legislative jurisdiction over the program or activity 
involved. The Administrator will file a report whenever any action is 
taken under paragraph (a) of this section.
    (d) NASA also may defer granting new Federal financial assistance 
from NASA to a recipient when a hearing under Sec. 1252.405(a)(1) is 
initiated.
    (1) New Federal financial assistance from NASA includes all 
assistance for which NASA requires an application or approval, including 
renewal or continuation of existing activities during the deferral 
period. New Federal financial assistance from NASA does not include 
assistance approved prior to the beginning of a hearing under Sec. 
1252.405(a)(1).
    (2) NASA will not begin a deferral until the recipient has received 
a notice of an opportunity for a hearing under Sec. 1252.405(a)(1). 
NASA will not continue a deferral for more than 60 days unless a hearing 
has begun within that time or the time for beginning the hearing has 
been extended by mutual consent of the recipient and the Administrator. 
NASA will not continue a deferral for more than 30 days after the close 
of the hearing, unless the hearing results in a finding against the 
recipient.

[50 FR 13311, Apr. 4, 1985, as amended at 68 FR 51352, Aug. 26, 2003]



Sec. 1252.406  Hearings.

    The procedural provisions for those hearings required by Sec. 
1252.405 are contained in 14 CFR 1250.108.



Sec. 1252.407  Notices, decisions, and post-termination proceedings.

    All notices, decisions, and post-termination proceedings, insofar as 
NASA is concerned, shall be made in accordance with 14 CFR 1250.109.

[[Page 252]]



Sec. 1252.408  Remedial action by recipients.

    (a) Where NASA finds a recipient has discriminated on the basis of 
age, the recipient shall take any remedial action that NASA may require 
to overcome the effects of the discrimination. If another recipient 
exercises control over the recipient that has discriminated, NASA may 
require both recipients to take remedial action.
    (b) Even in the absence of discrimination, a recipient may take 
affirmative action to overcome the effects of conditions that resulted 
in limited participation in the recipients program or activity on the 
basis of age.



Sec. 1252.409  Alternate funds disbursal procedure.

    (a) When NASA withholds funds from a recipient under these 
regulations, the Administrator may disburse the withheld funds directly 
to an alternate recipient.
    (b) The Administrator will require any alternate recipient to 
demonstrate:
    (1) The ability to comply with these regulations; and
    (2) The ability to achieve the goals of the Federal statute 
authorizing the Federal financial assistance.

[50 FR 13311, Apr. 4, 1985, as amended at 68 FR 51352, Aug. 26, 2003]



Sec. 1252.410  Exhaustion of administrative remedies.

    (a) A complainant may file a civil action following the exhaustion 
of administrative remedies under the Act. Administrative remedies are 
exhausted if:
    (1) 180 days have elapsed since the complainant filed the complaint 
and NASA has made no finding with regard to the complaint; or
    (2) NASA issues any findings in favor of the recipient.
    (b) If NASA fails to make a finding within 180 days or issues a 
finding in favor of the recipient, NASA will:
    (1) Promptly advise the complainant of this fact; and
    (2) Advise the complainant of his or her right to bring a civil 
action for injunctive relief; and
    (3) Inform the complainant:
    (i) That the complainant may bring a civil action only in a United 
States district court for the district in which the recipient is located 
or transacts business;
    (ii) That a complainant prevailing in a civil action has the right 
to be awarded the costs of the action, including reasonable attorney's 
fees, but that the complainant must demand these costs in the complaint.
    (iii) That before commencing the action the complainant shall give 
30 days notice by registered mail to the Administrator, the Attorney 
General of the United States, and
    (iv) That the notice must state: the alleged violation of the act; 
the relief requested; the court in which the complainant is bringing the 
action; and, whether or not attorney's fees are demanded in the event 
the complainant prevails; and
    (v) That the complainant may not bring an action if the same alleged 
violation of the Act by the same recipient is the subject of a pending 
action in any court of the United States.



Sec. 1252.411  Age distinctions.

    There are no Federal statutes or regulations containing age 
distinctions which affect financial assistance administered by the 
agency.



PART 1253--NONDISCRIMINATION ON THE BASIS OF SEX IN EDUCATION PROGRAMS OR ACTIVITIES RECEIVING FEDERAL FINANCIAL ASSISTANCE--Table of Contents




                         Subpart A--Introduction

Sec.
1253.100 Purpose and effective date.
1253.105 Definitions.
1253.110 Remedial and affirmative action and self-evaluation.
1253.115 Assurance required.
1253.120 Transfers of property.
1253.125 Effect of other requirements.
1253.130 Effect of employment opportunities.
1253.135 Designation of responsible employee and adoption of grievance 
          procedures.
1253.140 Dissemination of policy.

                           Subpart B--Coverage

1253.200 Application.

[[Page 253]]

1253.205 Educational institutions and other entities controlled by 
          religious organizations.
1253.210 Military and merchant marine educational institutions.
1253.215 Membership practices of certain organizations.
1253.220 Admissions.
1253.225 Educational institutions eligible to submit transition plans.
1253.230 Transition plans.
1253.235 Statutory amendments.

     Subpart C--Discrimination on the Basis of Sex in Admission and 
                         Recruitment Prohibited

1253.300 Admission.
1253.305 Preference in admission.
1253.310 Recruitment.

 Subpart D--Discrimination on the Basis of Sex in Education Programs or 
                          Activities Prohibited

1253.400 Education programs or activities.
1253.405 Housing.
1253.410 Comparable facilities.
1253.415 Access to course offerings.
1253.420 Access to schools operated by LEAs.
1253.425 Counseling and use of appraisal and counseling materials.
1253.430 Financial assistance.
1253.435 Employment assistance to students.
1253.440 Health and insurance benefits and services.
1253.445 Marital or parental status.
1253.450 Athletics.
1253.455 Textbooks and curricular material.

Subpart E--Discrimination on the Basis of Sex in Employment in Education 
                    Programs or Activities Prohibited

1253.500 Employment.
1253.505 Employment criteria.
1253.510 Recruitment.
1253.515 Compensation.
1253.520 Job classification and structure.
1253.525 Fringe benefits.
1253.530 Marital or parental status.
1253.535 Effect of state or local law or other requirements.
1253.540 Advertising.
1253.545 Pre-employment inquiries.
1253.550 Sex as a bona fide occupational qualification.

                          Subpart F--Procedures

1253.600 Notice of covered programs.
1253.605 Enforcement procedures.

    Authority: 20 U.S.C. 1681, 1682, 1683, 1685, 1686, 1687, 1688.

    Source: 65 FR 52865, 52876, Aug. 30, 2000, unless otherwise noted.



                         Subpart A--Introduction



Sec. 1253.100  Purpose and effective date.

    The purpose of these Title IX regulations is to effectuate Title IX 
of the Education Amendments of 1972, as amended (except sections 904 and 
906 of those Amendments) (20 U.S.C. 1681, 1682, 1683, 1685, 1686, 1687, 
1688), which is designed to eliminate (with certain exceptions) 
discrimination on the basis of sex in any education program or activity 
receiving Federal financial assistance, whether or not such program or 
activity is offered or sponsored by an educational institution as 
defined in these Title IX regulations. The effective date of these Title 
IX regulations shall be September 29, 2000.



Sec. 1253.105  Definitions.

    As used in these Title IX regulations, the term:
    Administratively separate unit means a school, department, or 
college of an educational institution (other than a local educational 
agency) admission to which is independent of admission to any other 
component of such institution.
    Admission means selection for part-time, full-time, special, 
associate, transfer, exchange, or any other enrollment, membership, or 
matriculation in or at an education program or activity operated by a 
recipient.
    Applicant means one who submits an application, request, or plan 
required to be approved by an official of the Federal agency that awards 
Federal financial assistance, or by a recipient, as a condition to 
becoming a recipient.
    Designated agency official means Associate Administrator for Equal 
Opportunity Programs.
    Educational institution means a local educational agency (LEA) as 
defined by 20 U.S.C. 8801(18), a preschool, a private elementary or 
secondary school, or an applicant or recipient that is an institution of 
graduate higher education, an institution of undergraduate higher 
education, an institution of professional education, or an institution 
of vocational education, as defined in this section.

[[Page 254]]

    Federal financial assistance means any of the following, when 
authorized or extended under a law administered by the Federal agency 
that awards such assistance:
    (1) A grant or loan of Federal financial assistance, including funds 
made available for:
    (i) The acquisition, construction, renovation, restoration, or 
repair of a building or facility or any portion thereof; and
    (ii) Scholarships, loans, grants, wages, or other funds extended to 
any entity for payment to or on behalf of students admitted to that 
entity, or extended directly to such students for payment to that 
entity.
    (2) A grant of Federal real or personal property or any interest 
therein, including surplus property, and the proceeds of the sale or 
transfer of such property, if the Federal share of the fair market value 
of the property is not, upon such sale or transfer, properly accounted 
for to the Federal Government.
    (3) Provision of the services of Federal personnel.
    (4) Sale or lease of Federal property or any interest therein at 
nominal consideration, or at consideration reduced for the purpose of 
assisting the recipient or in recognition of public interest to be 
served thereby, or permission to use Federal property or any interest 
therein without consideration.
    (5) Any other contract, agreement, or arrangement that has as one of 
its purposes the provision of assistance to any education program or 
activity, except a contract of insurance or guaranty.
    Institution of graduate higher education means an institution that:
    (1) Offers academic study beyond the bachelor of arts or bachelor of 
science degree, whether or not leading to a certificate of any higher 
degree in the liberal arts and sciences;
    (2) Awards any degree in a professional field beyond the first 
professional degree (regardless of whether the first professional degree 
in such field is awarded by an institution of undergraduate higher 
education or professional education); or
    (3) Awards no degree and offers no further academic study, but 
operates ordinarily for the purpose of facilitating research by persons 
who have received the highest graduate degree in any field of study.
    Institution of professional education means an institution (except 
any institution of undergraduate higher education) that offers a program 
of academic study that leads to a first professional degree in a field 
for which there is a national specialized accrediting agency recognized 
by the Secretary of Education.
    Institution of undergraduate higher education means:
    (1) An institution offering at least two but less than four years of 
college-level study beyond the high school level, leading to a diploma 
or an associate degree, or wholly or principally creditable toward a 
baccalaureate degree; or
    (2) An institution offering academic study leading to a 
baccalaureate degree; or
    (3) An agency or body that certifies credentials or offers degrees, 
but that may or may not offer academic study.
    Institution of vocational education means a school or institution 
(except an institution of professional or graduate or undergraduate 
higher education) that has as its primary purpose preparation of 
students to pursue a technical, skilled, or semiskilled occupation or 
trade, or to pursue study in a technical field, whether or not the 
school or institution offers certificates, diplomas, or degrees and 
whether or not it offers full-time study.
    Recipient means any State or political subdivision thereof, or any 
instrumentality of a State or political subdivision thereof, any public 
or private agency, institution, or organization, or other entity, or any 
person, to whom Federal financial assistance is extended directly or 
through another recipient and that operates an education program or 
activity that receives such assistance, including any subunit, 
successor, assignee, or transferee thereof.
    Student means a person who has gained admission.
    Title IX means Title IX of the Education Amendments of 1972, Public 
Law 92-318, 86 Stat. 235, 373 (codified as amended at 20 U.S.C. 1681-
1688) (except sections 904 and 906 thereof), as amended by section 3 of 
Public Law 93-568, 88

[[Page 255]]

Stat. 1855, by section 412 of the Education Amendments of 1976, Public 
Law 94-482, 90 Stat. 2234, and by Section 3 of Public Law 100-259, 102 
Stat. 28, 28-29 (20 U.S.C. 1681, 1682, 1683, 1685, 1686, 1687, 1688).
    Title IX regulations means the provisions set forth at Sec. Sec. 
1253.100 through 1253.605.
    Transition plan means a plan subject to the approval of the 
Secretary of Education pursuant to section 901(a)(2) of the Education 
Amendments of 1972, 20 U.S.C. 1681(a)(2), under which an educational 
institution operates in making the transition from being an educational 
institution that admits only students of one sex to being one that 
admits students of both sexes without discrimination.



Sec. 1253.110  Remedial and affirmative action and self-evaluation.

    (a) Remedial action. If the designated agency official finds that a 
recipient has discriminated against persons on the basis of sex in an 
education program or activity, such recipient shall take such remedial 
action as the designated agency official deems necessary to overcome the 
effects of such discrimination.
    (b) Affirmative action. In the absence of a finding of 
discrimination on the basis of sex in an education program or activity, 
a recipient may take affirmative action consistent with law to overcome 
the effects of conditions that resulted in limited participation therein 
by persons of a particular sex. Nothing in these Title IX regulations 
shall be interpreted to alter any affirmative action obligations that a 
recipient may have under Executive Order 11246, 3 CFR, 1964-1965 Comp., 
p. 339; as amended by Executive Order 11375, 3 CFR, 1966-1970 Comp., p. 
684; as amended by Executive Order 11478, 3 CFR, 1966-1970 Comp., p. 
803; as amended by Executive Order 12086, 3 CFR, 1978 Comp., p. 230; as 
amended by Executive Order 12107, 3 CFR, 1978 Comp., p. 264.
    (c) Self-evaluation. Each recipient education institution shall, 
within one year of September 29, 2000:
    (1) Evaluate, in terms of the requirements of these Title IX 
regulations, its current policies and practices and the effects thereof 
concerning admission of students, treatment of students, and employment 
of both academic and non-academic personnel working in connection with 
the recipient's education program or activity;
    (2) Modify any of these policies and practices that do not or may 
not meet the requirements of these Title IX regulations; and
    (3) Take appropriate remedial steps to eliminate the effects of any 
discrimination that resulted or may have resulted from adherence to 
these policies and practices.
    (d) Availability of self-evaluation and related materials. 
Recipients shall maintain on file for at least three years following 
completion of the evaluation required under paragraph (c) of this 
section, and shall provide to the designated agency official upon 
request, a description of any modifications made pursuant to paragraph 
(c)(2) of this section and of any remedial steps taken pursuant to 
paragraph (c)(3) of this section.



Sec. 1253.115  Assurance required.

    (a) General. Either at the application stage or the award stage, 
Federal agencies must ensure that applications for Federal financial 
assistance or awards of Federal financial assistance contain, be 
accompanied by, or be covered by a specifically identified assurance 
from the applicant or recipient, satisfactory to the designated agency 
official, that each education program or activity operated by the 
applicant or recipient and to which these Title IX regulations apply 
will be operated in compliance with these Title IX regulations. An 
assurance of compliance with these Title IX regulations shall not be 
satisfactory to the designated agency official if the applicant or 
recipient to whom such assurance applies fails to commit itself to take 
whatever remedial action is necessary in accordance with Sec. 
1253.110(a) to eliminate existing discrimination on the basis of sex or 
to eliminate the effects of past discrimination whether occurring prior 
to or subsequent to the submission to the designated agency official of 
such assurance.
    (b) Duration of obligation. (1) In the case of Federal financial 
assistance extended to provide real property or

[[Page 256]]

structures thereon, such assurance shall obligate the recipient or, in 
the case of a subsequent transfer, the transferee, for the period during 
which the real property or structures are used to provide an education 
program or activity.
    (2) In the case of Federal financial assistance extended to provide 
personal property, such assurance shall obligate the recipient for the 
period during which it retains ownership or possession of the property.
    (3) In all other cases such assurance shall obligate the recipient 
for the period during which Federal financial assistance is extended.
    (c) Form. (1) The assurances required by paragraph (a) of this 
section, which may be included as part of a document that addresses 
other assurances or obligations, shall include that the applicant or 
recipient will comply with all applicable Federal statutes relating to 
nondiscrimination. These include but are not limited to: Title IX of the 
Education Amendments of 1972, as amended (20 U.S.C. 1681-1683, 1685-
1688).
    (2) The designated agency official will specify the extent to which 
such assurances will be required of the applicant's or recipient's 
subgrantees, contractors, subcontractors, transferees, or successors in 
interest.



Sec. 1253.120  Transfers of property.

    If a recipient sells or otherwise transfers property financed in 
whole or in part with Federal financial assistance to a transferee that 
operates any education program or activity, and the Federal share of the 
fair market value of the property is not upon such sale or transfer 
properly accounted for to the Federal Government, both the transferor 
and the transferee shall be deemed to be recipients, subject to the 
provisions of Sec. Sec. 1253.205 through 1253.235(a).



Sec. 1253.125  Effect of other requirements.

    (a) Effect of other Federal provisions. The obligations imposed by 
these Title IX regulations are independent of, and do not alter, 
obligations not to discriminate on the basis of sex imposed by Executive 
Order 11246, 3 CFR, 1964-1965 Comp., p. 339; as amended by Executive 
Order 11375, 3 CFR, 1966-1970 Comp., p. 684; as amended by Executive 
Order 11478, 3 CFR, 1966-1970 Comp., p. 803; as amended by Executive 
Order 12087, 3 CFR, 1978 Comp., p. 230; as amended by Executive Order 
12107, 3 CFR, 1978 Comp., p. 264; sections 704 and 855 of the Public 
Health Service Act (42 U.S.C. 295m, 298b-2); Title VII of the Civil 
Rights Act of 1964 (42 U.S.C. 2000e et seq.); the Equal Pay Act of 1963 
(29 U.S.C. 206); and any other Act of Congress or Federal regulation.
    (b) Effect of State or local law or other requirements. The 
obligation to comply with these Title IX regulations is not obviated or 
alleviated by any State or local law or other requirement that would 
render any applicant or student ineligible, or limit the eligibility of 
any applicant or student, on the basis of sex, to practice any 
occupation or profession.
    (c) Effect of rules or regulations of private organizations. The 
obligation to comply with these Title IX regulations is not obviated or 
alleviated by any rule or regulation of any organization, club, athletic 
or other league, or association that would render any applicant or 
student ineligible to participate or limit the eligibility or 
participation of any applicant or student, on the basis of sex, in any 
education program or activity operated by a recipient and that receives 
Federal financial assistance.



Sec. 1253.130  Effect of employment opportunities.

    The obligation to comply with these Title IX regulations is not 
obviated or alleviated because employment opportunities in any 
occupation or profession are or may be more limited for members of one 
sex than for members of the other sex.



Sec. 1253.135  Designation of responsible employee and adoption of grievance procedures.

    (a) Designation of responsible employee. Each recipient shall 
designate at least one employee to coordinate its efforts to comply with 
and carry out its responsibilities under these Title IX regulations, 
including any investigation of any complaint communicated to such 
recipient alleging its noncompliance

[[Page 257]]

with these Title IX regulations or alleging any actions that would be 
prohibited by these Title IX regulations. The recipient shall notify all 
its students and employees of the name, office address, and telephone 
number of the employee or employees appointed pursuant to this 
paragraph.
    (b) Complaint procedure of recipient. A recipient shall adopt and 
publish grievance procedures providing for prompt and equitable 
resolution of student and employee complaints alleging any action that 
would be prohibited by these Title IX regulations.



Sec. 1253.140  Dissemination of policy.

    (a) Notification of policy. (1) Each recipient shall implement 
specific and continuing steps to notify applicants for admission and 
employment, students and parents of elementary and secondary school 
students, employees, sources of referral of applicants for admission and 
employment, and all unions or professional organizations holding 
collective bargaining or professional agreements with the recipient, 
that it does not discriminate on the basis of sex in the educational 
programs or activities that it operates, and that it is required by 
Title IX and these Title IX regulations not to discriminate in such a 
manner. Such notification shall contain such information, and be made in 
such manner, as the designated agency official finds necessary to 
apprise such persons of the protections against discrimination assured 
them by Title IX and these Title IX regulations, but shall state at 
least that the requirement not to discriminate in education programs or 
activities extends to employment therein, and to admission thereto 
unless Sec. Sec. 1253.300 through 1253.310 do not apply to the 
recipient, and that inquiries concerning the application of Title IX and 
these Title IX regulations to such recipient may be referred to the 
employee designated pursuant to Sec. 1253.135, or to the designated 
agency official.
    (2) Each recipient shall make the initial notification required by 
paragraph (a)(1) of this section within 90 days of September 29, 2000 or 
of the date these Title IX regulations first apply to such recipient, 
whichever comes later, which notification shall include publication in:
    (i) Newspapers and magazines operated by such recipient or by 
student, alumnae, or alumni groups for or in connection with such 
recipient; and
    (ii) Memoranda or other written communications distributed to every 
student and employee of such recipient.
    (b) Publications. (1) Each recipient shall prominently include a 
statement of the policy described in paragraph (a) of this section in 
each announcement, bulletin, catalog, or application form that it makes 
available to any person of a type, described in paragraph (a) of this 
section, or which is otherwise used in connection with the recruitment 
of students or employees.
    (2) A recipient shall not use or distribute a publication of the 
type described in paragraph (b)(1) of this section that suggests, by 
text or illustration, that such recipient treats applicants, students, 
or employees differently on the basis of sex except as such treatment is 
permitted by these Title IX regulations.
    (c) Distribution. Each recipient shall distribute without 
discrimination on the basis of sex each publication described in 
paragraph (b)(1) of this section, and shall apprise each of its 
admission and employment recruitment representatives of the policy of 
nondiscrimination described in paragraph (a) of this section, and shall 
require such representatives to adhere to such policy.



                           Subpart B--Coverage



Sec. 1253.200  Application.

    Except as provided in Sec. Sec. 1253.205 through 1253.235(a), these 
Title IX regulations apply to every recipient and to each education 
program or activity operated by such recipient that receives Federal 
financial assistance.



Sec. 1253.205  Educational institutions and other entities controlled by religious organizations.

    (a) Exemption. These Title IX regulations do not apply to any 
operation of an educational institution or other entity that is 
controlled by a religious organization to the extent that application of 
these Title IX regulations

[[Page 258]]

would not be consistent with the religious tenets of such organization.
    (b) Exemption claims. An educational institution or other entity 
that wishes to claim the exemption set forth in paragraph (a) of this 
section shall do so by submitting in writing to the designated agency 
official a statement by the highest-ranking official of the institution, 
identifying the provisions of these Title IX regulations that conflict 
with a specific tenet of the religious organization.



Sec. 1253.210  Military and merchant marine educational institutions.

    These Title IX regulations do not apply to an educational 
institution whose primary purpose is the training of individuals for a 
military service of the United States or for the merchant marine.



Sec. 1253.215  Membership practices of certain organizations.

    (a) Social fraternities and sororities. These Title IX regulations 
do not apply to the membership practices of social fraternities and 
sororities that are exempt from taxation under section 501(a) of the 
Internal Revenue Code of 1954, 26 U.S.C. 501(a), the active membership 
of which consists primarily of students in attendance at institutions of 
higher education.
    (b) YMCA, YWCA, Girl Scouts, Boy Scouts, and Camp Fire Girls. These 
Title IX regulations do not apply to the membership practices of the 
Young Men's Christian Association (YMCA), the Young Women's Christian 
Association (YWCA), the Girl Scouts, the Boy Scouts, and Camp Fire 
Girls.
    (c) Voluntary youth service organizations. These Title IX 
regulations do not apply to the membership practices of a voluntary 
youth service organization that is exempt from taxation under section 
501(a) of the Internal Revenue Code of 1954, 26 U.S.C. 501(a), and the 
membership of which has been traditionally limited to members of one sex 
and principally to persons of less than nineteen years of age.



Sec. 1253.220  Admissions.

    (a) Admissions to educational institutions prior to June 24, 1973, 
are not covered by these Title IX regulations.
    (b) Administratively separate units. For the purposes only of this 
section, Sec. Sec. 1253.225 and 1253.230, and Sec. Sec. 1253.300 
through 1253.310, each administratively separate unit shall be deemed to 
be an educational institution.
    (c) Application of Sec. Sec. 1253.300 through 1253.310. Except as 
provided in paragraphs (d) and (e) of this section, Sec. Sec. 1253.300 
through 1253.310 apply to each recipient. A recipient to which 
Sec. Sec. 1253.300 through 1253.310 apply shall not discriminate on the 
basis of sex in admission or recruitment in violation of Sec. Sec. 
1253.300 through 1253.310.
    (d) Educational institutions. Except as provided in paragraph (e) of 
this section as to recipients that are educational institutions, 
Sec. Sec. 1253.300 through 1253.310 apply only to institutions of 
vocational education, professional education, graduate higher education, 
and public institutions of undergraduate higher education.
    (e) Public institutions of undergraduate higher education. 
Sec. Sec. 1253.300 through 1253.310 do not apply to any public 
institution of undergraduate higher education that traditionally and 
continually from its establishment has had a policy of admitting 
students of only one sex.



Sec. 1253.225  Educational institutions eligible to submit transition plans.

    (a) Application. This section applies to each educational 
institution to which Sec. Sec. 1253.300 through 1253.310 apply that:
    (1) Admitted students of only one sex as regular students as of June 
23, 1972; or
    (2) Admitted students of only one sex as regular students as of June 
23, 1965, but thereafter admitted, as regular students, students of the 
sex not admitted prior to June 23, 1965.
    (b) Provision for transition plans. An educational institution to 
which this section applies shall not discriminate on the basis of sex in 
admission or recruitment in violation of Sec. Sec. 1253.300 through 
1253.310.



Sec. 1253.230  Transition plans.

    (a) Submission of plans. An institution to which Sec. 1253.225 
applies and that is composed of more than one administratively separate 
unit may submit either

[[Page 259]]

a single transition plan applicable to all such units, or a separate 
transition plan applicable to each such unit.
    (b) Content of plans. In order to be approved by the Secretary of 
Education, a transition plan shall:
    (1) State the name, address, and Federal Interagency Committee on 
Education Code of the educational institution submitting such plan, the 
administratively separate units to which the plan is applicable, and the 
name, address, and telephone number of the person to whom questions 
concerning the plan may be addressed. The person who submits the plan 
shall be the chief administrator or president of the institution, or 
another individual legally authorized to bind the institution to all 
actions set forth in the plan.
    (2) State whether the educational institution or administratively 
separate unit admits students of both sexes as regular students and, if 
so, when it began to do so.
    (3) Identify and describe with respect to the educational 
institution or administratively separate unit any obstacles to admitting 
students without discrimination on the basis of sex.
    (4) Describe in detail the steps necessary to eliminate as soon as 
practicable each obstacle so identified and indicate the schedule for 
taking these steps and the individual directly responsible for their 
implementation.
    (5) Include estimates of the number of students, by sex, expected to 
apply for, be admitted to, and enter each class during the period 
covered by the plan.
    (c) Nondiscrimination. No policy or practice of a recipient to which 
Sec. 1253.225 applies shall result in treatment of applicants to or 
students of such recipient in violation of Sec. Sec. 1253.300 through 
1253.310 unless such treatment is necessitated by an obstacle identified 
in paragraph (b)(3) of this section and a schedule for eliminating that 
obstacle has been provided as required by paragraph (b)(4) of this 
section.
    (d) Effects of past exclusion. To overcome the effects of past 
exclusion of students on the basis of sex, each educational institution 
to which Sec. 1253.225 applies shall include in its transition plan, 
and shall implement, specific steps designed to encourage individuals of 
the previously excluded sex to apply for admission to such institution. 
Such steps shall include instituting recruitment programs that emphasize 
the institution's commitment to enrolling students of the sex previously 
excluded.



Sec. 1253.235  Statutory amendments.

    (a) This section, which applies to all provisions of these Title IX 
regulations, addresses statutory amendments to Title IX.
    (b) These Title IX regulations shall not apply to or preclude:
    (1) Any program or activity of the American Legion undertaken in 
connection with the organization or operation of any Boys State 
conference, Boys Nation conference, Girls State conference, or Girls 
Nation conference;
    (2) Any program or activity of a secondary school or educational 
institution specifically for:
    (i) The promotion of any Boys State conference, Boys Nation 
conference, Girls State conference, or Girls Nation conference; or
    (ii) The selection of students to attend any such conference;
    (3) Father-son or mother-daughter activities at an educational 
institution or in an education program or activity, but if such 
activities are provided for students of one sex, opportunities for 
reasonably comparable activities shall be provided to students of the 
other sex;
    (4) Any scholarship or other financial assistance awarded by an 
institution of higher education to an individual because such individual 
has received such award in a single-sex pageant based upon a combination 
of factors related to the individual's personal appearance, poise, and 
talent. The pageant, however, must comply with other nondiscrimination 
provisions of Federal law.
    (c) Program or activity or program means:
    (1) All of the operations of any entity described in paragraphs 
(c)(1)(i) through (iv) of this section, any part of which is extended 
Federal financial assistance:

[[Page 260]]

    (i)(A) A department, agency, special purpose district, or other 
instrumentality of a State or of a local government; or
    (B) The entity of such State or local government that distributes 
such assistance and each such department or agency (and each other State 
or local government entity) to which the assistance is extended, in the 
case of assistance to a State or local government;
    (ii)(A) A college, university, or other postsecondary institution, 
or a public system of higher education; or
    (B) A local educational agency (as defined in section 8801 of title 
20), system of vocational education, or other school system;
    (iii)(A) An entire corporation, partnership, or other private 
organization, or an entire sole proprietorship--
    (1) If assistance is extended to such corporation, partnership, 
private organization, or sole proprietorship as a whole; or
    (2) Which is principally engaged in the business of providing 
education, health care, housing, social services, or parks and 
recreation; or
    (B) The entire plant or other comparable, geographically separate 
facility to which Federal financial assistance is extended, in the case 
of any other corporation, partnership, private organization, or sole 
proprietorship; or
    (iv) Any other entity that is established by two or more of the 
entities described in paragraphs (c)(1)(i), (ii), or (iii) of this 
section.
    (2)(i) Program or activity does not include any operation of an 
entity that is controlled by a religious organization if the application 
of 20 U.S.C. 1681 to such operation would not be consistent with the 
religious tenets of such organization.
    (ii) For example, all of the operations of a college, university, or 
other postsecondary institution, including but not limited to 
traditional educational operations, faculty and student housing, campus 
shuttle bus service, campus restaurants, the bookstore, and other 
commercial activities are part of a ``program or activity'' subject to 
these Title IX regulations if the college, university, or other 
institution receives Federal financial assistance.
    (d)(1) Nothing in these Title IX regulations shall be construed to 
require or prohibit any person, or public or private entity, to provide 
or pay for any benefit or service, including the use of facilities, 
related to an abortion. Medical procedures, benefits, services, and the 
use of facilities, necessary to save the life of a pregnant woman or to 
address complications related to an abortion are not subject to this 
section.
    (2) Nothing in this section shall be construed to permit a penalty 
to be imposed on any person or individual because such person or 
individual is seeking or has received any benefit or service related to 
a legal abortion. Accordingly, subject to paragraph (d)(1) of this 
section, no person shall be excluded from participation in, be denied 
the benefits of, or be subjected to discrimination under any academic, 
extracurricular, research, occupational training, employment, or other 
educational program or activity operated by a recipient that receives 
Federal financial assistance because such individual has sought or 
received, or is seeking, a legal abortion, or any benefit or service 
related to a legal abortion.



     Subpart C--Discrimination on the Basis of Sex in Admission and 
                         Recruitment Prohibited



Sec. 1253.300  Admission.

    (a) General. No person shall, on the basis of sex, be denied 
admission, or be subjected to discrimination in admission, by any 
recipient to which Sec. Sec. 1253.300 through Sec. Sec. 1253.310 
apply, except as provided in Sec. Sec. 1253.225 and Sec. Sec. 
1253.230.
    (b) Specific prohibitions. (1) In determining whether a person 
satisfies any policy or criterion for admission, or in making any offer 
of admission, a recipient to which Sec. Sec. 1253.300 through 1253.310 
apply shall not:
    (i) Give preference to one person over another on the basis of sex, 
by ranking applicants separately on such basis, or otherwise;
    (ii) Apply numerical limitations upon the number or proportion of 
persons of either sex who may be admitted; or

[[Page 261]]

    (iii) Otherwise treat one individual differently from another on the 
basis of sex.
    (2) A recipient shall not administer or operate any test or other 
criterion for admission that has a disproportionately adverse effect on 
persons on the basis of sex unless the use of such test or criterion is 
shown to predict validly success in the education program or activity in 
question and alternative tests or criteria that do not have such a 
disproportionately adverse effect are shown to be unavailable.
    (c) Prohibitions relating to marital or parental status. In 
determining whether a person satisfies any policy or criterion for 
admission, or in making any offer of admission, a recipient to which 
Sec. Sec. 1253.300 through 1253.310 apply:
    (1) Shall not apply any rule concerning the actual or potential 
parental, family, or marital status of a student or applicant that 
treats persons differently on the basis of sex;
    (2) Shall not discriminate against or exclude any person on the 
basis of pregnancy, childbirth, termination of pregnancy, or recovery 
therefrom, or establish or follow any rule or practice that so 
discriminates or excludes;
    (3) Subject to Sec. 1253.235(d), shall treat disabilities related 
to pregnancy, childbirth, termination of pregnancy, or recovery 
therefrom in the same manner and under the same policies as any other 
temporary disability or physical condition; and
    (4) Shall not make pre-admission inquiry as to the marital status of 
an applicant for admission, including whether such applicant is ``Miss'' 
or ``Mrs.'' A recipient may make pre-admission inquiry as to the sex of 
an applicant for admission, but only if such inquiry is made equally of 
such applicants of both sexes and if the results of such inquiry are not 
used in connection with discrimination prohibited by these Title IX 
regulations.



Sec. 1253.305  Preference in admission.

    A recipient to which Sec. Sec. 1253.300 through 1253.310 apply 
shall not give preference to applicants for admission, on the basis of 
attendance at any educational institution or other school or entity that 
admits as students only or predominantly members of one sex, if the 
giving of such preference has the effect of discriminating on the basis 
of sex in violation of Sec. Sec. 1253.300 through 1253.310.



Sec. 1253.310  Recruitment.

    (a) Nondiscriminatory recruitment. A recipient to which Sec. Sec. 
1253.300 through 1253.310 apply shall not discriminate on the basis of 
sex in the recruitment and admission of students. A recipient may be 
required to undertake additional recruitment efforts for one sex as 
remedial action pursuant to Sec. 1253.110(a), and may choose to 
undertake such efforts as affirmative action pursuant to Sec. 
1253.110(b).
    (b) Recruitment at certain institutions. A recipient to which 
Sec. Sec. 1253.300 through 1253.310 apply shall not recruit primarily 
or exclusively at educational institutions, schools, or entities that 
admit as students only or predominantly members of one sex, if such 
actions have the effect of discriminating on the basis of sex in 
violation of Sec. Sec. 1253.300 through 1253.310.



 Subpart D--Discrimination on the Basis of Sex in Education Programs or 
                          Activities Prohibited



Sec. 1253.400  Education programs or activities.

    (a) General. Except as provided elsewhere in these Title IX 
regulations, no person shall, on the basis of sex, be excluded from 
participation in, be denied the benefits of, or be subjected to 
discrimination under any academic, extracurricular, research, 
occupational training, or other education program or activity operated 
by a recipient that receives Federal financial assistance. Sections 
1253.400 through 1253.455 do not apply to actions of a recipient in 
connection with admission of its students to an education program or 
activity of a recipient to which Sec. Sec. 1253.300 through 1253.310 do 
not apply, or an entity, not a recipient, to which Sec. Sec. 1253.300 
through 1253.310 would not apply if the entity were a recipient.
    (b) Specific prohibitions. Except as provided in Sec. Sec. 1253.400 
through 1253.455, in providing any aid, benefit, or service to a 
student, a recipient shall not, on the basis of sex:

[[Page 262]]

    (1) Treat one person differently from another in determining whether 
such person satisfies any requirement or condition for the provision of 
such aid, benefit, or service;
    (2) Provide different aid, benefits, or services or provide aid, 
benefits, or services in a different manner;
    (3) Deny any person any such aid, benefit, or service;
    (4) Subject any person to separate or different rules of behavior, 
sanctions, or other treatment;
    (5) Apply any rule concerning the domicile or residence of a student 
or applicant, including eligibility for in-state fees and tuition;
    (6) Aid or perpetuate discrimination against any person by providing 
significant assistance to any agency, organization, or person that 
discriminates on the basis of sex in providing any aid, benefit, or 
service to students or employees;
    (7) Otherwise limit any person in the enjoyment of any right, 
privilege, advantage, or opportunity.
    (c) Assistance administered by a recipient educational institution 
to study at a foreign institution. A recipient educational institution 
may administer or assist in the administration of scholarships, 
fellowships, or other awards established by foreign or domestic wills, 
trusts, or similar legal instruments, or by acts of foreign governments 
and restricted to members of one sex, that are designed to provide 
opportunities to study abroad, and that are awarded to students who are 
already matriculating at or who are graduates of the recipient 
institution; Provided, that a recipient educational institution that 
administers or assists in the administration of such scholarships, 
fellowships, or other awards that are restricted to members of one sex 
provides, or otherwise makes available, reasonable opportunities for 
similar studies for members of the other sex. Such opportunities may be 
derived from either domestic or foreign sources.
    (d) Aids, benefits or services not provided by recipient. (1) This 
paragraph (d) applies to any recipient that requires participation by 
any applicant, student, or employee in any education program or activity 
not operated wholly by such recipient, or that facilitates, permits, or 
considers such participation as part of or equivalent to an education 
program or activity operated by such recipient, including participation 
in educational consortia and cooperative employment and student-teaching 
assignments.
    (2) Such recipient:
    (i) Shall develop and implement a procedure designed to assure 
itself that the operator or sponsor of such other education program or 
activity takes no action affecting any applicant, student, or employee 
of such recipient that these Title IX regulations would prohibit such 
recipient from taking; and
    (ii) Shall not facilitate, require, permit, or consider such 
participation if such action occurs.



Sec. 1253.405  Housing.

    (a) Generally. A recipient shall not, on the basis of sex, apply 
different rules or regulations, impose different fees or requirements, 
or offer different services or benefits related to housing, except as 
provided in this section (including housing provided only to married 
students).
    (b) Housing provided by recipient. (1) A recipient may provide 
separate housing on the basis of sex.
    (2) Housing provided by a recipient to students of one sex, when 
compared to that provided to students of the other sex, shall be as a 
whole:
    (i) Proportionate in quantity to the number of students of that sex 
applying for such housing; and
    (ii) Comparable in quality and cost to the student.
    (c) Other housing. (1) A recipient shall not, on the basis of sex, 
administer different policies or practices concerning occupancy by its 
students of housing other than that provided by such recipient.
    (2)(i) A recipient which, through solicitation, listing, approval of 
housing, or otherwise, assists any agency, organization, or person in 
making housing available to any of its students, shall take such 
reasonable action as may be necessary to assure itself that such housing 
as is provided to students of one sex, when compared to that provided to 
students of the other sex, is as a whole:

[[Page 263]]

    (A) Proportionate in quantity; and
    (B) Comparable in quality and cost to the student.
    (ii) A recipient may render such assistance to any agency, 
organization, or person that provides all or part of such housing to 
students of only one sex.



Sec. 1253.410  Comparable facilities.

    A recipient may provide separate toilet, locker room, and shower 
facilities on the basis of sex, but such facilities provided for 
students of one sex shall be comparable to such facilities provided for 
students of the other sex.



Sec. 1253.415  Access to course offerings.

    (a) A recipient shall not provide any course or otherwise carry out 
any of its education program or activity separately on the basis of sex, 
or require or refuse participation therein by any of its students on 
such basis, including health, physical education, industrial, business, 
vocational, technical, home economics, music, and adult education 
courses.
    (b)(1) With respect to classes and activities in physical education 
at the elementary school level, the recipient shall comply fully with 
this section as expeditiously as possible but in no event later than one 
year from September 29, 2000. With respect to physical education classes 
and activities at the secondary and post-secondary levels, the recipient 
shall comply fully with this section as expeditiously as possible but in 
no event later than three years from September 29, 2000.
    (2) This section does not prohibit grouping of students in physical 
education classes and activities by ability as assessed by objective 
standards of individual performance developed and applied without regard 
to sex.
    (3) This section does not prohibit separation of students by sex 
within physical education classes or activities during participation in 
wrestling, boxing, rugby, ice hockey, football, basketball, and other 
sports the purpose or major activity of which involves bodily contact.
    (4) Where use of a single standard of measuring skill or progress in 
a physical education class has an adverse effect on members of one sex, 
the recipient shall use appropriate standards that do not have such 
effect.
    (5) Portions of classes in elementary and secondary schools, or 
portions of education programs or activities, that deal exclusively with 
human sexuality may be conducted in separate sessions for boys and 
girls.
    (6) Recipients may make requirements based on vocal range or quality 
that may result in a chorus or choruses of one or predominantly one sex.



Sec. 1253.420  Access to schools operated by LEAs.

    A recipient that is a local educational agency shall not, on the 
basis of sex, exclude any person from admission to:
    (a) Any institution of vocational education operated by such 
recipient; or
    (b) Any other school or educational unit operated by such recipient, 
unless such recipient otherwise makes available to such person, pursuant 
to the same policies and criteria of admission, courses, services, and 
facilities comparable to each course, service, and facility offered in 
or through such schools.



Sec. 1253.425  Counseling and use of appraisal and counseling materials.

    (a) Counseling. A recipient shall not discriminate against any 
person on the basis of sex in the counseling or guidance of students or 
applicants for admission.
    (b) Use of appraisal and counseling materials. A recipient that uses 
testing or other materials for appraising or counseling students shall 
not use different materials for students on the basis of their sex or 
use materials that permit or require different treatment of students on 
such basis unless such different materials cover the same occupations 
and interest areas and the use of such different materials is shown to 
be essential to eliminate sex bias. Recipients shall develop and use 
internal procedures for ensuring that such materials do not discriminate 
on the basis of sex. Where the use of a counseling test or other 
instrument results in a substantially disproportionate number of members 
of one sex in any particular course of study or classification, the 
recipient shall take such action as is

[[Page 264]]

necessary to assure itself that such disproportion is not the result of 
discrimination in the instrument or its application.
    (c) Disproportion in classes. Where a recipient finds that a 
particular class contains a substantially disproportionate number of 
individuals of one sex, the recipient shall take such action as is 
necessary to assure itself that such disproportion is not the result of 
discrimination on the basis of sex in counseling or appraisal materials 
or by counselors.



Sec. 1253.430  Financial assistance.

    (a) General. Except as provided in paragraphs (b) and (c) of this 
section, in providing financial assistance to any of its students, a 
recipient shall not:
    (1) On the basis of sex, provide different amounts or types of such 
assistance, limit eligibility for such assistance that is of any 
particular type or source, apply different criteria, or otherwise 
discriminate;
    (2) Through solicitation, listing, approval, provision of 
facilities, or other services, assist any foundation, trust, agency, 
organization, or person that provides assistance to any of such 
recipient's students in a manner that discriminates on the basis of sex; 
or
    (3) Apply any rule or assist in application of any rule concerning 
eligibility for such assistance that treats persons of one sex 
differently from persons of the other sex with regard to marital or 
parental status.
    (b) Financial aid established by certain legal instruments. (1) A 
recipient may administer or assist in the administration of 
scholarships, fellowships, or other forms of financial assistance 
established pursuant to domestic or foreign wills, trusts, bequests, or 
similar legal instruments or by acts of a foreign government that 
require that awards be made to members of a particular sex specified 
therein; Provided, that the overall effect of the award of such sex-
restricted scholarships, fellowships, and other forms of financial 
assistance does not discriminate on the basis of sex.
    (2) To ensure nondiscriminatory awards of assistance as required in 
paragraph (b)(1) of this section, recipients shall develop and use 
procedures under which:
    (i) Students are selected for award of financial assistance on the 
basis of nondiscriminatory criteria and not on the basis of availability 
of funds restricted to members of a particular sex;
    (ii) An appropriate sex-restricted scholarship, fellowship, or other 
form of financial assistance is allocated to each student selected under 
paragraph (b)(2)(i) of this section; and
    (iii) No student is denied the award for which he or she was 
selected under paragraph (b)(2)(i) of this section because of the 
absence of a scholarship, fellowship, or other form of financial 
assistance designated for a member of that student's sex.
    (c) Athletic scholarships. (1) To the extent that a recipient awards 
athletic scholarships or grants-in-aid, it must provide reasonable 
opportunities for such awards for members of each sex in proportion to 
the number of students of each sex participating in interscholastic or 
intercollegiate athletics.
    (2) A recipient may provide separate athletic scholarships or 
grants-in-aid for members of each sex as part of separate athletic teams 
for members of each sex to the extent consistent with this paragraph (c) 
and Sec. 1253.450.



Sec. 1253.435  Employment assistance to students.

    (a) Assistance by recipient in making available outside employment. 
A recipient that assists any agency, organization, or person in making 
employment available to any of its students:
    (1) Shall assure itself that such employment is made available 
without discrimination on the basis of sex; and
    (2) Shall not render such services to any agency, organization, or 
person that discriminates on the basis of sex in its employment 
practices.
    (b) Employment of students by recipients. A recipient that employs 
any of its students shall not do so in a manner that violates Sec. Sec. 
1253.500 through 1253.550.



Sec. 1253.440  Health and insurance benefits and services.

    Subject to Sec. 1253.235(d), in providing a medical, hospital, 
accident, or life insurance benefit, service, policy, or plan

[[Page 265]]

to any of its students, a recipient shall not discriminate on the basis 
of sex, or provide such benefit, service, policy, or plan in a manner 
that would violate Sec. Sec. 1253.500 through 1253.550 if it were 
provided to employees of the recipient. This section shall not prohibit 
a recipient from providing any benefit or service that may be used by a 
different proportion of students of one sex than of the other, including 
family planning services. However, any recipient that provides full 
coverage health service shall provide gynecological care.



Sec. 1253.445  Marital or parental status.

    (a) Status generally. A recipient shall not apply any rule 
concerning a student's actual or potential parental, family, or marital 
status that treats students differently on the basis of sex.
    (b) Pregnancy and related conditions. (1) A recipient shall not 
discriminate against any student, or exclude any student from its 
education program or activity, including any class or extracurricular 
activity, on the basis of such student's pregnancy, childbirth, false 
pregnancy, termination of pregnancy, or recovery therefrom, unless the 
student requests voluntarily to participate in a separate portion of the 
program or activity of the recipient.
    (2) A recipient may require such a student to obtain the 
certification of a physician that the student is physically and 
emotionally able to continue participation as long as such a 
certification is required of all students for other physical or 
emotional conditions requiring the attention of a physician.
    (3) A recipient that operates a portion of its education program or 
activity separately for pregnant students, admittance to which is 
completely voluntary on the part of the student as provided in paragraph 
(b)(1) of this section, shall ensure that the separate portion is 
comparable to that offered to non-pregnant students.
    (4) Subject to Sec. 1253.235(d), a recipient shall treat pregnancy, 
childbirth, false pregnancy, termination of pregnancy and recovery 
therefrom in the same manner and under the same policies as any other 
temporary disability with respect to any medical or hospital benefit, 
service, plan, or policy that such recipient administers, operates, 
offers, or participates in with respect to students admitted to the 
recipient's educational program or activity.
    (5) In the case of a recipient that does not maintain a leave policy 
for its students, or in the case of a student who does not otherwise 
qualify for leave under such a policy, a recipient shall treat 
pregnancy, childbirth, false pregnancy, termination of pregnancy, and 
recovery therefrom as a justification for a leave of absence for as long 
a period of time as is deemed medically necessary by the student's 
physician, at the conclusion of which the student shall be reinstated to 
the status that she held when the leave began.



Sec. 1253.450  Athletics.

    (a) General. No person shall, on the basis of sex, be excluded from 
participation in, be denied the benefits of, be treated differently from 
another person, or otherwise be discriminated against in any 
interscholastic, intercollegiate, club, or intramural athletics offered 
by a recipient, and no recipient shall provide any such athletics 
separately on such basis.
    (b) Separate teams. Notwithstanding the requirements of paragraph 
(a) of this section, a recipient may operate or sponsor separate teams 
for members of each sex where selection for such teams is based upon 
competitive skill or the activity involved is a contact sport. However, 
where a recipient operates or sponsors a team in a particular sport for 
members of one sex but operates or sponsors no such team for members of 
the other sex, and athletic opportunities for members of that sex have 
previously been limited, members of the excluded sex must be allowed to 
try out for the team offered unless the sport involved is a contact 
sport. For the purposes of these Title IX regulations, contact sports 
include boxing, wrestling, rugby, ice hockey, football, basketball, and 
other sports the purpose or major activity of which involves bodily 
contact.
    (c) Equal opportunity. (1) A recipient that operates or sponsors 
interscholastic, intercollegiate, club, or intramural athletics shall 
provide equal athletic opportunity for members of both sexes. In 
determining whether equal opportunities are available, the

[[Page 266]]

designated agency official will consider, among other factors:
    (i) Whether the selection of sports and levels of competition 
effectively accommodate the interests and abilities of members of both 
sexes;
    (ii) The provision of equipment and supplies;
    (iii) Scheduling of games and practice time;
    (iv) Travel and per diem allowance;
    (v) Opportunity to receive coaching and academic tutoring;
    (vi) Assignment and compensation of coaches and tutors;
    (vii) Provision of locker rooms, practice, and competitive 
facilities;
    (viii) Provision of medical and training facilities and services;
    (ix) Provision of housing and dining facilities and services;
    (x) Publicity.
    (2) For purposes of paragraph (c)(1) of this section, unequal 
aggregate expenditures for members of each sex or unequal expenditures 
for male and female teams if a recipient operates or sponsors separate 
teams will not constitute noncompliance with this section, but the 
designated agency official may consider the failure to provide necessary 
funds for teams for one sex in assessing equality of opportunity for 
members of each sex.
    (d) Adjustment period. A recipient that operates or sponsors 
interscholastic, intercollegiate, club, or intramural athletics at the 
elementary school level shall comply fully with this section as 
expeditiously as possible but in no event later than one year from 
September 29, 2000. A recipient that operates or sponsors 
interscholastic, intercollegiate, club, or intramural athletics at the 
secondary or postsecondary school level shall comply fully with this 
section as expeditiously as possible but in no event later than three 
years from September 29, 2000.



Sec. 1253.455  Textbooks and curricular material.

    Nothing in these Title IX regulations shall be interpreted as 
requiring or prohibiting or abridging in any way the use of particular 
textbooks or curricular materials.



Subpart E--Discrimination on the Basis of Sex in Employment in Education 
                    Programs or Activities Prohibited



Sec. 1253.500  Employment.

    (a) General. (1) No person shall, on the basis of sex, be excluded 
from participation in, be denied the benefits of, or be subjected to 
discrimination in employment, or recruitment, consideration, or 
selection therefor, whether full-time or part-time, under any education 
program or activity operated by a recipient that receives Federal 
financial assistance.
    (2) A recipient shall make all employment decisions in any education 
program or activity operated by such recipient in a nondiscriminatory 
manner and shall not limit, segregate, or classify applicants or 
employees in any way that could adversely affect any applicant's or 
employee's employment opportunities or status because of sex.
    (3) A recipient shall not enter into any contractual or other 
relationship which directly or indirectly has the effect of subjecting 
employees or students to discrimination prohibited by Sec. Sec. 
1253.500 through 1253.550, including relationships with employment and 
referral agencies, with labor unions, and with organizations providing 
or administering fringe benefits to employees of the recipient.
    (4) A recipient shall not grant preferences to applicants for 
employment on the basis of attendance at any educational institution or 
entity that admits as students only or predominantly members of one sex, 
if the giving of such preferences has the effect of discriminating on 
the basis of sex in violation of these Title IX regulations.
    (b) Application. The provisions of Sec. Sec. 1253.500 through 
1253.550 apply to:
    (1) Recruitment, advertising, and the process of application for 
employment;
    (2) Hiring, upgrading, promotion, consideration for and award of 
tenure, demotion, transfer, layoff, termination, application of nepotism 
policies, right of return from layoff, and rehiring;
    (3) Rates of pay or any other form of compensation, and changes in 
compensation;

[[Page 267]]

    (4) Job assignments, classifications, and structure, including 
position descriptions, lines of progression, and seniority lists;
    (5) The terms of any collective bargaining agreement;
    (6) Granting and return from leaves of absence, leave for pregnancy, 
childbirth, false pregnancy, termination of pregnancy, leave for persons 
of either sex to care for children or dependents, or any other leave;
    (7) Fringe benefits available by virtue of employment, whether or 
not administered by the recipient;
    (8) Selection and financial support for training, including 
apprenticeship, professional meetings, conferences, and other related 
activities, selection for tuition assistance, selection for sabbaticals 
and leaves of absence to pursue training;
    (9) Employer-sponsored activities, including social or recreational 
programs; and
    (10) Any other term, condition, or privilege of employment.



Sec. 1253.505  Employment criteria.

    A recipient shall not administer or operate any test or other 
criterion for any employment opportunity that has a disproportionately 
adverse effect on persons on the basis of sex unless:
    (a) Use of such test or other criterion is shown to predict validly 
successful performance in the position in question; and
    (b) Alternative tests or criteria for such purpose, which do not 
have such disproportionately adverse effect, are shown to be 
unavailable.



Sec. 1253.510  Recruitment.

    (a) Nondiscriminatory recruitment and hiring. A recipient shall not 
discriminate on the basis of sex in the recruitment and hiring of 
employees. Where a recipient has been found to be presently 
discriminating on the basis of sex in the recruitment or hiring of 
employees, or has been found to have so discriminated in the past, the 
recipient shall recruit members of the sex so discriminated against so 
as to overcome the effects of such past or present discrimination.
    (b) Recruitment patterns. A recipient shall not recruit primarily or 
exclusively at entities that furnish as applicants only or predominantly 
members of one sex if such actions have the effect of discriminating on 
the basis of sex in violation of Sec. Sec. 1253.500 through 1253.550.



Sec. 1253.515  Compensation.

    A recipient shall not make or enforce any policy or practice that, 
on the basis of sex:
    (a) Makes distinctions in rates of pay or other compensation;
    (b) Results in the payment of wages to employees of one sex at a 
rate less than that paid to employees of the opposite sex for equal work 
on jobs the performance of which requires equal skill, effort, and 
responsibility, and that are performed under similar working conditions.



Sec. 1253.520  Job classification and structure.

    A recipient shall not:
    (a) Classify a job as being for males or for females;
    (b) Maintain or establish separate lines of progression, seniority 
lists, career ladders, or tenure systems based on sex; or
    (c) Maintain or establish separate lines of progression, seniority 
systems, career ladders, or tenure systems for similar jobs, position 
descriptions, or job requirements that classify persons on the basis of 
sex, unless sex is a bona fide occupational qualification for the 
positions in question as set forth in Sec. 1253.550.



Sec. 1253.525  Fringe benefits.

    (a) ``Fringe benefits'' defined. For purposes of these Title IX 
regulations, fringe benefits means: Any medical, hospital, accident, 
life insurance, or retirement benefit, service, policy or plan, any 
profit-sharing or bonus plan, leave, and any other benefit or service of 
employment not subject to the provision of Sec. 1253.515.
    (b) Prohibitions. A recipient shall not:
    (1) Discriminate on the basis of sex with regard to making fringe 
benefits available to employees or make fringe benefits available to 
spouses, families, or dependents of employees differently upon the basis 
of the employee's sex;

[[Page 268]]

    (2) Administer, operate, offer, or participate in a fringe benefit 
plan that does not provide for equal periodic benefits for members of 
each sex and for equal contributions to the plan by such recipient for 
members of each sex; or
    (3) Administer, operate, offer, or participate in a pension or 
retirement plan that establishes different optional or compulsory 
retirement ages based on sex or that otherwise discriminates in benefits 
on the basis of sex.



Sec. 1253.530  Marital or parental status.

    (a) General. A recipient shall not apply any policy or take any 
employment action:
    (1) Concerning the potential marital, parental, or family status of 
an employee or applicant for employment that treats persons differently 
on the basis of sex; or
    (2) Which is based upon whether an employee or applicant for 
employment is the head of household or principal wage earner in such 
employee's or applicant's family unit.
    (b) Pregnancy. A recipient shall not discriminate against or exclude 
from employment any employee or applicant for employment on the basis of 
pregnancy, childbirth, false pregnancy, termination of pregnancy, or 
recovery therefrom.
    (c) Pregnancy as a temporary disability. Subject to 
Sec. 1253.235(d), a recipient shall treat pregnancy, childbirth, false 
pregnancy, termination of pregnancy, recovery therefrom, and any 
temporary disability resulting therefrom as any other temporary 
disability for all job-related purposes, including commencement, 
duration, and extensions of leave, payment of disability income, accrual 
of seniority and any other benefit or service, and reinstatement, and 
under any fringe benefit offered to employees by virtue of employment.
    (d) Pregnancy leave. In the case of a recipient that does not 
maintain a leave policy for its employees, or in the case of an employee 
with insufficient leave or accrued employment time to qualify for leave 
under such a policy, a recipient shall treat pregnancy, childbirth, 
false pregnancy, termination of pregnancy, and recovery therefrom as a 
justification for a leave of absence without pay for a reasonable period 
of time, at the conclusion of which the employee shall be reinstated to 
the status that she held when the leave began or to a comparable 
position, without decrease in rate of compensation or loss of 
promotional opportunities, or any other right or privilege of 
employment.



Sec. 1253.535  Effect of state or local law or other requirements.

    (a) Prohibitory requirements. The obligation to comply with 
Sec. Sec. 1253.500 through 1253.550 is not obviated or alleviated by the 
existence of any State or local law or other requirement that imposes 
prohibitions or limits upon employment of members of one sex that are 
not imposed upon members of the other sex.
    (b) Benefits. A recipient that provides any compensation, service, 
or benefit to members of one sex pursuant to a State or local law or 
other requirement shall provide the same compensation, service, or 
benefit to members of the other sex.



Sec. 1253.540  Advertising.

    A recipient shall not in any advertising related to employment 
indicate preference, limitation, specification, or discrimination based 
on sex unless sex is a bona fide occupational qualification for the 
particular job in question.



Sec. 1253.545  Pre-employment inquiries.

    (a) Marital status. A recipient shall not make pre-employment 
inquiry as to the marital status of an applicant for employment, 
including whether such applicant is ``Miss'' or ``Mrs.''
    (b) Sex. A recipient may make pre-employment inquiry as to the sex 
of an applicant for employment, but only if such inquiry is made equally 
of such applicants of both sexes and if the results of such inquiry are 
not used in connection with discrimination prohibited by these Title IX 
regulations.



Sec. 1253.550  Sex as a bona fide occupational qualification.

    A recipient may take action otherwise prohibited by 
Sec. Sec. 1253.500 through 1253.550 provided it is shown that sex is a 
bona fide occupational qualification for that action, such that 
consideration of sex with regard to such action

[[Page 269]]

is essential to successful operation of the employment function 
concerned. A recipient shall not take action pursuant to this section 
that is based upon alleged comparative employment characteristics or 
stereotyped characterizations of one or the other sex, or upon 
preference based on sex of the recipient, employees, students, or other 
persons, but nothing contained in this section shall prevent a recipient 
from considering an employee's sex in relation to employment in a locker 
room or toilet facility used only by members of one sex.



                          Subpart F--Procedures



Sec. 1253.600  Notice of covered programs.

    Within 60 days of September 29, 2000, each Federal agency that 
awards Federal financial assistance shall publish in the Federal 
Register a notice of the programs covered by these Title IX regulations. 
Each such Federal agency shall periodically republish the notice of 
covered programs to reflect changes in covered programs. Copies of this 
notice also shall be made available upon request to the Federal agency's 
office that enforces Title IX.



Sec. 1253.605  Enforcement procedures.

    The investigative, compliance, and enforcement procedural provisions 
of Title VI of the Civil Rights Act of 1964 (42 U.S.C. 2000d) (``Title 
VI'') are hereby adopted and applied to these Title IX regulations. 
These procedures may be found at 14 CFR 1250.105 through 1250.110.

[65 FR 52877, Aug. 30, 2000]



PART 1259--NATIONAL SPACE GRANT COLLEGE AND FELLOWSHIP PROGRAM--Table of Contents




                         Subpart 1--Basic Policy

Sec.
1259.100 Scope of part.
1259.101 Definitions.
1259.102 General policy.
1259.103 Special authorities--gift acceptance and other Federal funding.

            Subpart 2--Space Grant Program and Project Awards

1259.200 Description.
1259.201 Types of Space Grant program and project awards--regular and 
          special.
1259.202 Application procedures.
1259.203 Limitations.

                    Subpart 3--National Needs Grants

1259.300 Description.
1259.301 Identification of national needs.
1259.302 Application procedures.
1259.303 Limitations.

        Subpart 4--Space Grant College and Consortium Designation

1259.400 Description.
1259.401 Responsibilities.
1259.402 Basic criteria and application procedures.
1259.403 Limitations.
1259.404 Suspension or termination of designation.

                   Subpart 5--Space Grant Fellowships

1259.500 Description.
1259.501 Responsibilities.
1259.502 Application procedures.
1259.503 Limitations.

                   Subpart 6--Space Grant Review Panel

1259.600 Panel description.
1259.601 Establishment and composition.
1259.602 Conflict of interest.
1259.603 Responsibilities.

    Authority: Pub. L. 100-147, 101 Stat. 869-875, 42 U.S.C. 2486; 42 
U.S.C. 2452.

    Source: 54 FR 19880, May 9, 1989, unless otherwise noted.



                         Subpart 1--Basic Policy



Sec. 1259.100  Scope of part.

    (a) This part 1259 establishes the policies, responsibilities and 
procedures relative to the National Space Grant College and Fellowship 
Program established by Title II of the National Aeronautics and Space 
Administration Authorization Act of 1988 (Pub. L. 100-147, Oct. 30, 
1987, 101 Stat. 869-875, 42 U.S.C. 2486). This statute authorizes the 
Administrator of the National Aeronautics and Space Administration 
(NASA), in order to carry out the purposes of the National Space Grant 
College and Fellowship Act (the Act), to accept conditional or 
unconditional gifts and donations, to accept and use funds from other 
Federal departments, agencies and instrumentalities, to make awards with 
respect to such

[[Page 270]]

needs or problems and to designate Space Grant colleges. It further 
directs the Administrator to establish a graduate fellowship program to 
provide educational assistance to qualified individuals in fields 
related to space, and to establish an independent committee known as the 
Space Grant Review Panel to review and advise the Administrator with 
respect to Space Grant programs.
    (b) The regulations of this part do not apply to awards made by NASA 
under any other authority.



Sec. 1259.101  Definitions.

    For the purposes of this part, the following definitions shall 
apply:
    (a) Field related to space means any academic discipline or field of 
study (including the physical, natural and biological sciences, and 
engineering, space technology, education, economics, sociology, 
communications, planning, law, international affairs and public 
administration) which is concerned with or likely to improve the 
understanding, assessment, development and utilization of space.
    (b) Institution of higher education means any college or university 
in any State which:
    (1) Admits as regular students only individuals who have a 
certificate of graduation or equivalent from a secondary school;
    (2) Is legally authorized within such State to provide a program of 
education beyond secondary education;
    (3) Provides an educational program for which a bachelor's degree or 
other higher degree is awarded;
    (4) Is a public or other nonprofit institution; and
    (5) Is accredited by a nationally recognized accrediting agency or 
association.
    (c) National of the United States means a citizen of the United 
States or a native resident of a possession of the United States. It 
does not refer to or include a citizen of another country who has 
applied for United States citizenship.
    (d) Panel means the Space Grant Review Panel established pursuant to 
section 210 of the Act.
    (e) Person means any individual, public or private corporation, 
partnership or other association or entity (including any Space Grant 
college, Space Grant consortium, institution of higher education, 
institute or laboratory), or any State, political subdivision thereof, 
or agency or officer of a State or political subdivision thereof.
    (f) Space means aeronautical and space activities which has the 
meaning given to such term in section 103(1) of the National Aeronautics 
and Space Act of 1958, as amended (42 U.S.C. 2452).
    (g) Space Grant college means any public or private institution of 
higher education which is designated as such by the Administrator or 
designee pursuant to section 208 of the Act.
    (h) Space Grant regional consortium means any association or other 
alliance which is designated as such by the Administrator or designee 
pursuant to section 208 of the Act.
    (i) Space Grant program means any program which:
    (1) Is administered by any Space Grant college, Space Grant regional 
consortium, institution of higher education, institute, laboratory or 
State or local agency; and
    (2) Includes two or more projects involving education and one or 
more of the following activities in the fields related to space:
    (i) Research;
    (ii) Training; or
    (iii) Advisory services.
    (j) Space Grant program award means any award contemplated under 
section 206(a) of the Act.
    (k) Special Space Grant program award means any award extended under 
section 206(b) of the Act.
    (l) Specific national need grant means any award extended under 
section 207 of the Act.
    (m) State means any State of the United States, the District of 
Columbia, the Commonwealth of Puerto Rico, the Virgin Islands, Guam, 
American Samoa, the Commonwealth of the Northern Mariana Islands and any 
other territory or possession of the United States.
    (n) State Space Grant cooperating institution means any institution 
of higher education in a State which does not have a designated Space 
Grant college that is named by the Administrator or designee to provide 
selected Space

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Grant program functions within that State.



Sec. 1259.102  General policy.

    (a) In accordance with subsections 103(a)(2) and (3) of the National 
Aeronautics and Space Act of 1958, as amended, (42 U.S.C. 2457(a)(3)), 
it is NASA's policy, through various educational programs, to provide 
direct support for and encouragement to teachers, students and 
prospective students in fields related to space.
    (b) In compliance with the National Space Grant College and 
Fellowship Act (42 U.S.C. 2486), it shall be NASA's purpose to:
    (1) Increase the understanding, assessment, development and 
utilization of space resources by promoting a strong educational base, 
responsive research and training activities and broad and prompt 
dissemination of knowledge and techniques;
    (2) Utilize the abilities and talents of the universities of the 
Nation to support and contribute to the exploration and development of 
the resources and opportunities afforded by the space environment;
    (3) Encourage and support the existence of interdisciplinary and 
multidisciplinary programs of space research, to engage in activities of 
training (including teacher education), research and public service and 
to have cooperative programs with industry;
    (4) Encourage and support the existence of consortia, composed of 
university and industry members, to advance the exploration and 
development of space resources in cases in which national objectives can 
be better fulfilled than through the programs of single universities;
    (5) Encourage and support Federal funding for graduate fellowships 
in fields related to space;
    (6) Support activities in colleges and universities generally for 
the purpose of creating and operating a network of institutional 
programs that will enhance achievements resulting from efforts under 
this Act; and
    (7) Encourage cooperation and coordination among Federal agencies 
and Federal programs concerned with space issues.
    (c) It shall be NASA's policy to designate Space Grant colleges, 
State Space Grant cooperating institutions and Space Grant regional 
consortia and award fellowships, grants, contracts and other 
transactions competitively in a merit-based review process.
    (d) It shall be NASA's policy to designate and make awards without 
discriminating on the basis of sex, race, color, religion, national 
origin or handicap.



Sec. 1259.103  Special authorities--gift acceptance and other Federal funding.

    (a) Acceptance of gifts:
    (1) In order to carry out the provisions of the Act, the 
Administrator is authorized to accept conditional or unconditional gifts 
or donations of services, money or property, real, personal or mixed, 
tangible or intangible. This authority is delegated to the Director, 
Educational Affairs Division.
    (2) The Administrator or designee may decline any gift or donation 
that the Administrator determines is not in accord with the purposes of 
the program. Also, conditional gifts or donations that are not in 
compliance with the Act or the implementing regulations shall be 
declined. NASA may use a reasonable amount from a gift or donation to 
cover any administrative costs associated with such gift or donation.
    (b) Acceptance and use of funds from other Federal agencies:
    (1) To carry out the provisions of the Act, the Administrator is 
authorized to accept and use funds from other Federal departments, 
agencies and instrumentalities to pay for awards under this program. 
This authority is delegated to the Director, Educational Affairs 
Division.
    (2) The Administrator or designee may decline any such funds when 
the Administrator determines acceptance would not be in accord with the 
purposes of the program. NASA may use a reasonable amount from 
transferred Federal funds to cover any administrative costs associated 
with such transfer.

[[Page 272]]



            Subpart 2--Space Grant Program and Project Awards



Sec. 1259.200  Description.

    Awards are authorized to establish any Space Grant and/or fellowship 
program or project if such program or project will further the purposes 
of the Act.



Sec. 1259.201  Types of Space Grant program and project awards--regular and special.

    (a) A regular Space Grant program or project award shall:
    (1) Be funded by NASA up to 66 percent of the total cost of the 
Space Grant award and/or fellowship program involved; or
    (2) Be funded up to 100 percent of its cost if funded by another 
Federal entity.
    (b) A special Space Grant program or project award may be funded up 
to 100 percent of the total cost of the special project if the 
Administrator or designee, the Director, Educational Affairs Division, 
finds that:
    (1) No reasonable means is available through which the applicant can 
meet the matching requirements for a regular Space Grant award under 
paragraph (a) of this section;
    (2) The probable benefit of such project outweighs the public 
interest in such matching requirement; and
    (3) The same or equivalent benefit cannot be obtained through the 
award of a regular Space Grant program or project award under paragraph 
(a) of this section or the award of a specific national need grant under 
section 207 of the Act.



Sec. 1259.202  Application procedures.

    (a) The opportunity to apply shall be announced by the Director, 
Educational Affairs Division.
    (b) The application procedures and evaluation guidelines for awards 
under this section will be included in the announcements of such 
programs.
    (c) The applications will be reviewed by a peer review merit 
selection panel appointed by the Director, Educational Affairs Division.



Sec. 1259.203  Limitations.

    Public Law 100-147, Section 206(d)(2) and (3), states that:
    (a) Funds for awards made under this section may not be used to:
    (1) Purchase land;
    (2) Purchase, construct, preserve or repair any building; or
    (3) Purchase or construct any launch facility or launch vehicle.
    (b) Funds may be used to lease any of the items listed in paragraph 
(a) of this section as long as prior written approval is obtained from 
the Administrator or designee.



                    Subpart 3--National Needs Grants



Sec. 1259.300  Description.

    National needs awards may be awarded by the Administrator or 
designee to meet such needs or problems relating to aerospace identified 
by the Space Grant Review Panel, by NASA officials or by any person. 
Such awards may be up to 100 percent of the total cost of the program or 
project.



Sec. 1259.301  Identification of national needs.

    National needs shall be identified by the Administrator who shall 
consider specific national needs and problems relating to space proposed 
by the Space Grant Review Panel, any NASA official or any person.



Sec. 1259.302  Application procedures.

    (a) The Administrator or designee has the authority to make awards 
to meet identified national needs.
    (b) The Director, Educational Affairs Division, shall establish a 
competitive, merit-based review process to examine unsolicited national 
needs proposals.



Sec. 1259.303  Limitations.

    The same limitations shall apply as are stated in Sec. 1259.203.



        Subpart 4--Space Grant College and Consortium Designation



Sec. 1259.400  Description.

    (a) The Administrator may designate Space Grant colleges, Space 
Grant college consortia and Space Grant regional consortia in order to 
establish

[[Page 273]]

Federal/university partnerships to promote a strong educational base in 
the space and aeronautical sciences. These designated colleges and 
consortia will provide leadership for a network of American colleges and 
universities, industry and State and local governments in space-related 
fields. The Administrator hereby delegates this authority to the 
Director, Educational Affairs Division.
    (b) Designation of Space Grant colleges, Space Grant college 
consortia and Space Grant regional consortia shall be for 5 years. 
Designation of Space Grant colleges and consortia may be continued based 
on a merit review at the beginning of the fifth year.
    (c) Each designated Space Grant college or consortium will receive:
    (1) A Space Grant award that requires a 100 percent match; and
    (2) Funds for fellowships.
    (d) Each Space Grant college or consortium will be funded annually.



Sec. 1259.401  Responsibilities.

    Each designated Space Grant college or consortium shall:
    (a) Designate a Space Grant Program Director;
    (b) Establish a Space Grant Office;
    (c) Administer a fellowship program;
    (d) Develop and implement programs of public service, 
interdisciplinary space-related programs, advisory activities and 
cooperation with industry, research laboratories, State and local 
governments and other colleges and universities, particularly 
institutions in their State and/or region with significantly large 
enrollments of racial minorities who are under-represented in science 
and technology; and
    (e) Provide nonfederal matching funds (exclusive of in-kind 
contributions) for the Space Grant program equal to that provided by 
NASA.



Sec. 1259.402  Basic criteria and application procedures.

    (a) Any institution of higher education may be designated a Space 
Grant college if the Administrator or designee finds that it has a 
balanced program of research, education, training and advisory services 
in fields related to space, as further defined in the program 
announcement.
    (b) Any association or other alliance of two or more persons may be 
designated a Space Grant regional consortium, if the Administrator or 
designee finds that such association or alliance:
    (1) Is established for the purpose of sharing expertise, research, 
educational or training facilities and other capabilities in order to 
facilitate research, education, training and advisory services, in any 
field related to space;
    (2) Will encourage and follow a regional approach to solving 
problems or meeting needs relating to space, in cooperation with other 
institutions of higher education, Space Grant program grantees and other 
persons in the region.
    (c) The opportunity to apply for designation shall be announced by 
the Director, Educational Affairs Division. The application procedures 
and evaluation guidelines for designation shall be included in the 
designation announcement.
    (d) Designation will be decided by a competitive merit review of the 
program proposal measured against the purposes of the Act and including, 
but not limited to, proposed linkages with other colleges and 
universities (particularly institutions with significant enrollments of 
under-represented minority groups), public service and collaboration 
with space-related industry.



Sec. 1259.403  Limitations.

    The same limitations shall apply as are stated in Sec. 1259.203.



Sec. 1259.404  Suspension or termination of designation.

    The Administrator or designee, the Director, Educational Affairs 
Division, may, for cause, and after an opportunity for a hearing before 
an Administrative Judge appointed by the Deputy Administrator, suspend 
or terminate the Space Grant designation of any institution or 
consortium.



                   Subpart 5--Space Grant Fellowships



Sec. 1259.500  Description.

    The Space Grant fellowship program will provide educational and 
training assistance to qualified individuals at

[[Page 274]]

the graduate level in fields related to space. Awards will be made to 
institutions of higher education for fellowships. The student recipients 
shall be known as NASA Space Grant Fellows.



Sec. 1259.501  Responsibilities.

    (a) All institutions which receive Space Grant fellowships will be 
expected to use the awards to increase the pool of graduate students in 
fields related to space.
    (b) The overall fellowship program shall be cognizant of 
institutional diversity and geographical distribution.



Sec. 1259.502  Application procedures.

    (a) All applicants for designation as Space Grant colleges and 
consortia must apply for Space Grant fellowships.
    (b) Applicants for Space Grant program or project grants (under 
Sec. 1259.200) and for national needs grants (under Sec. 1259.300) may 
also apply for Space Grant fellowships.
    (c) There will be a merit review selection of Space Grant fellowship 
awards.



Sec. 1259.503  Limitations.

    (a) Fellowships shall be awarded only to Nationals of the United 
States.
    (b) Any students supported under this fellowship program shall not 
be funded for more than 4 years unless the Director, Educational Affairs 
Division, makes an exception.



                   Subpart 6--Space Grant Review Panel



Sec. 1259.600  Panel description.

    An independent committee, the Space Grant Review Panel, which is not 
subject to the Federal Advisory Committee Act, shall be established to 
advise the Administrator with respect to Space Grant program and project 
awards, the Space Grant fellowship program and the designation and 
operation of Space Grant colleges and consortia. A majority of the 
voting members shall be individuals who, by reason of knowledge, 
experience, or training are especially qualified in one or more of the 
fields related to space. The other voting members shall be individuals 
who, by reason of knowledge, experience or training, are especially 
qualified in, or representative of, education, extension services, State 
government, industry, economics, planning or any other activity related 
to the purposes of the Space Grant program.



Sec. 1259.601  Establishment and composition.

    (a) The Panel, to be located at NASA Headquarters in Washington, DC, 
will be composed of ten voting members who are not current NASA 
employees.
    (b) It shall include four from Federal departments, agencies or 
entities that have an interest in space programs or science and 
education, and six nonfederal representatives.
    (c) The nonfederal representatives shall include two persons who are 
directly involved with the Space Grant program at a Space Grant college 
or consortium, one person involved with the Space Grant program at a 
university that is not a designated Space Grant college, a university 
president or chancellor, one representative of a space-related industry 
and the last person to be from whatever field the Administrator 
determines to be of greatest concern.
    (d) The Panel members shall be appointed by the Administrator or 
designee.
    (e) The relevant organizations and associations in aerospace and 
science education fields will be asked to provide three names for each 
position on the panel. The Administrator shall consider them, but not be 
limited to them, in the selection process.
    (f) The Administrator or designee shall select a Chair and a Vice 
Chair. The Vice Chair shall act as Chair in the absence or incapacity of 
the Chair.
    (g) The Administrator or designee may select NASA officials to serve 
as ex officio, nonvoting members of the panel.



Sec. 1259.602  Conflict of interest.

    Any member of the Panel who has a personal or financial interest in 
an issue before the Panel shall abstain from voting on such issue.

[[Page 275]]



Sec. 1259.603  Responsibilities.

    (a) The Panel shall advise the Administrator and the Director, 
Educational Affairs Division, with respect to:
    (1) Applications or proposals for, and performance under, awards 
made pursuant to sections 206 and 207 of Title II of the Act;
    (2) The Space Grant fellowship program;
    (3) The designation and operation of Space Grant colleges and Space 
Grant regional consortia, and the operation of Space Grant and 
fellowship programs;
    (4) The formulation and application of the planning guidelines and 
priorities pursuant to section 205 (a) and (b)(1) of Title II of the 
Act; and
    (5) Such other matters as the Administrator refers to the Panel for 
review and advice.
    (b) The Panel shall meet biannually and at any other time at the 
call of the Chair or upon a request from a majority of the voting 
members or at the call of the Administrator.
    (c) The Panel may exercise such powers as are reasonably necessary 
in order to carry out the duties enumerated in paragraph (a) of this 
section.
    (d) The Director, Educational Affairs Division, shall appoint an 
Executive Secretary who shall perform administrative duties for the 
Panel.
    (e) Federal members of the Panel will have their agencies reimbursed 
by NASA for any travel costs and per diem expenses required to attend 
Panel meetings.
    (f) Nonfederal members of the Panel will be reimbursed by NASA for 
travel costs and per diem expenses required to attend Panel meetings.



PART 1260--GRANTS AND COOPERATIVE AGREEMENTS--Table of Contents




                           Subpart A--General

Sec.
1260.1 Authority.
1260.2 Purpose.
1260.3 Definitions.
1260.4 Applicability.
1260.5 Amendment.
1260.6 Publication.
1260.7 Deviations.

                         Pre-Award Requirements

1260.10 Proposals.
1260.11 Evaluation and selection.
1260.12 Choice of award instrument.
1260.13 Award procedures.
1260.14 Limitations.
1260.15 Format and numbering.
1260.16 Distribution.
1260.17 Evaluation and selection of unsolicited proposals.

                               Provisions

1260.20 Provisions.
1260.21 Compliance with OMB Circular A-110.
1260.22 Technical publications and reports.
1260.23 Extensions.
1260.24 Termination and enforcement.
1260.25 Change in principal investigator or scope.
1260.26 Financial management.
1260.27 Equipment and other property.
1260.28 Patent rights.
1260.29 [Reserved]
1260.30 Rights in data.
1260.31 National security.
1260.32 Nondiscrimination.
1260.33 Subcontracts.
1260.34 Clean air and water.
1260.35 Investigative requirements.
1260.36 Travel and transportation.
1260.37 Safety.
1260.38 Drug-free workplace.
1260.39 Buy American encouragement.

                           Special Conditions

1260.50 Special conditions.
1260.51 Cooperative agreement special condition.
1260.52 Multiple year grant or cooperative agreement.
1260.53 Incremental funding.
1260.54 Cost sharing.
1260.55 Reports substitution.
1260.56 Withholding.
1260.57 New technology.
1260.58 Designation of new technology representative and patent 
          representative.
1260.59 Choice of law.
1260.59A Invention reporting and rights.
1260.60 Public information.
1260.61 Allocation of risk/liability.
1260.62 Payment--to foreign organizations.
1260.63 Customs clearance and visas.
1260.64 Taxes.
1260.65 Exchange of technical data and goods.
1260.66 Listing of reportable equipment and other property.
1260.67 Equipment and other property under grants with commercial firms.
1260.68 Invoices and payments under grants with commercial firms.
1260.69 Electronic funds transfer payment methods.

[[Page 276]]

                         Post-Award Requirements

1260.70 Delegation of administration.
1260.71 Supplements and renewals.
1260.72 Adherence to original budget estimates.
1260.73 Transfers, novations, and change of name agreements.
1260.74 Property use, disposition, and vesting of title.
1260.75 Summary of report requirements.
1260.76 Termination and enforcement.
1260.77 Closeout procedures.

Appendix to Subpart A to Part 1260--Listing of Exhibits

     Subpart B--Uniform Administrative Requirements for Grants and 
Cooperative Agreements with Institutions of Higher Education, Hospitals, 
                   and Other Non-Profit Organizations

                                 General

1260.101 Purpose.
1260.102 Definitions.
1260.103 Effect on other issuances.
1260.104 Deviations.
1260.105 Subawards.

                         Pre-Award Requirements

1260.110 Purpose.
1260.111 Pre-award policies.
1260.112 Forms for applying for Federal assistance.
1260.113 Debarment and suspension.
1260.114 Special award conditions.
1260.115 Metric system of measurement.
1260.116 Resource Conservation and Recovery Act (RCRA).
1260.117 Certifications and representations.

                         Post-Award Requirements

                    Financial and Program Management

1260.120 Purpose of financial and program management.
1260.121 Standards for financial management systems.
1260.122 Payment.
1260.123 Cost sharing or matching.
1260.124 Program income.
1260.125 Revision of budget and program plans.
1260.126 Non-Federal audits.
1260.127 Allowable costs.
1260.128 Period of availability of funds.

                           Property Standards

1260.130 Purpose of property standards.
1260.131 Insurance coverage.
1260.132 Real property.
1260.133 Federally-owned and exempt property.
1260.134 Equipment.
1260.135 Supplies and other expendable property.
1260.136 Intangible property.
1260.137 Property trust relationship.

                          Procurement Standards

1260.140 Purpose of procurement standards.
1260.141 Recipient responsibilities.
1260.142 Codes of conduct.
1260.143 Competition.
1260.144 Procurement procedures.
1260.145 Cost and price analysis.
1260.146 Procurement records.
1260.147 Contract administration.
1260.148 Contract provisions.

                           Reports and Records

1260.150 Purpose of reports and records.
1260.151 Monitoring and reporting program performance.
1260.152 Financial reporting.
1260.153 Retention and access requirements for records.

                       Termination and Enforcement

1260.160 Purpose of termination and enforcement.
1260.161 Termination.
1260.162 Enforcement.

                      After-the-Award Requirements

1260.170 Purpose.
1260.171 Closeout procedures.
1260.172 Subsequent adjustments and continuing responsibilities.
1260.173 Collections of amounts due.

Appendix A to Subpart B of Part 1260--Contract Provisions

    Authority: 42 U.S.C. 2473(c)(1), Pub. L. 97-258, 96 Stat. 1003 (31 
U.S.C. 6301 et seq.), and OMB Circular A-110.

    Source: 65 FR 62900, Oct. 19, 2000, unless otherwise noted.



                           Subpart A--General



Sec. 1260.1  Authority.

    (a) The National Aeronautics and Space Administration (NASA) awards 
grants and cooperative agreements under the authority of 42 U.S.C. 
2473(c)(5), the National Aeronautics and Space Act. This part 1260 is 
issued under the authority of 42 U.S.C. 2473(c)(1), Pub. L. 97-258, 96 
Stat. 1003 (31 U.S.C. 6301 et seq.), and OMB Circular A-110.
    (b) The Office of Management and Budget (OMB) approved information 
collection under the Paperwork Reduction Act and assigned OMB control 
numbers 2700-0047, Property Management and Control; 2700-0048, Patents; 
2700-0049, Financial Management and

[[Page 277]]

Control; and 2700-0097, Central Contractor Registration.



Sec. 1260.2  Purpose.

    (a) This subpart A of the NASA Grant and Cooperative Agreement 
Handbook (also subpart A of 14 CFR part 1260), provides supplemental 
NASA policies that clarify and amplify government-wide regulations for 
awarding and administering grants and cooperative agreements with 
educational and non-profit organizations. The government-wide 
regulations that this subpart supplements are set forth in OMB Circular 
A-110 ``Uniform Administrative Requirements for Grants and Agreements 
With Institutions of Higher Education, Hospitals, and Other Non-Profit 
Organizations.'' (NASA has adopted OMB Circular A-110 as subpart B of 
this part 1260.)
    (b) As required by the Office of Management and Budget (OMB), NASA 
has also adopted the standards set forth in OMB Circular No. A-133, 
Audits of States, Local Governments, and Non-Profit Organizations.



Sec. 1260.3  Definitions.

    (a) The following definitions are a supplement to the subpart B 
definitions set forth at Sec. 1260.102. Additional definitions 
applicable to specific categories of grants and cooperative agreements 
are set forth at 14 CFR 1273.3 and 14 CFR 1274.102.
    (b) Throughout subpart A to this part 1260, the term ``grant'' 
includes ``cooperative agreement'' unless otherwise indicated.
    Administrative grant officer means a Federal employee delegated 
responsibility for grant administration; e.g., a NASA grant officer who 
has retained grant administration responsibilities, or an Office of 
Naval Research (ONR) grant officer delegated grant administration by a 
NASA grant officer.
    Amendment means any document used to effect modifications to grants 
and cooperative agreements. Amendments may be issued unilaterally at the 
discretion of the grant officer.
    Commercial firm means any corporation, trust or other organization 
which is organized primarily for profit.
    Effective date means the date work can begin, which could be earlier 
or later than the date of signature on a basic award or modification. 
Expenditures made prior to award of a grant are incurred at the 
recipient's risk.
    Expiration date means the date of completion specified in the grant, 
after which expenditures may not be charged against the grant except to 
satisfy obligations to pay allowable costs committed on or before that 
date.
    Historically Black Colleges and Universities means institutions 
determined by the Secretary of Education to meet the requirements of 34 
CFR 608.2 and listed therein.
    Minority educational institution means an institution determined by 
the Secretary of Education to meet the requirements of 34 CFR 637.4.
    Non-profit organization means an organization that qualifies for the 
exemption from taxation under section 501 of the Internal Revenue Code 
of 1954, as amended, 26 U.S.C. 501.
    Progress report means a concise statement of work accomplished 
during the report period (see Sec. Sec. 1260.22 and 1260.75(b)(3)).
    Recipient acquired equipment means equipment purchased or fabricated 
with grant funds by a recipient for the performance of work under its 
grant.
    Small business concern means a concern, including its affiliates, 
which is independently owned and operated, not dominant in the field of 
operation in which it is bidding, and qualifies as a small business 
under the criteria and size standards in 13 CFR part 121.
    Small disadvantaged business concern means a small business concern 
owned and controlled by individuals who are both socially and 
economically disadvantaged and meets the criteria set forth at 13 CFR 
part 24.
    Summary of research means a document summarizing the results of the 
entire project, which includes bibliographies, abstracts, and lists of 
other media in which the research was discussed.
    Women-owned small business concern means a small business concern 
that is at least 51 percent owned by women who are U.S. citizens and who 
also control and operate the business (15 U.S.C. 637(d)).

[[Page 278]]



Sec. 1260.4  Applicability.

    (a) Subparts A and B of this part 1260 establish policies and 
procedures for grants and cooperative agreements awarded by NASA to 
institutions of higher education, hospitals, and other non-profit 
organizations.
    (b) Subject to the special considerations in this paragraph, 
subparts A and B of this part 1260 are also applicable to NASA grants 
and cooperative agreements awarded to commercial firms which do not 
involve cost sharing. (This does not prohibit voluntary cost sharing.) 
When the commercial firm is expected to receive substantial compensating 
benefits for performance of the work, resource contributions are 
required for the award of a grant or cooperative agreement. For policies 
on cooperative agreements with commercial organizations requiring 
resource contributions by the Recipient, see 14 CFR part 1274.
    (1) The allowability of costs incurred by commercial firms is 
determined in accordance with the provisions of the Federal Acquisition 
Regulation (FAR) at 48 CFR part 31.
    (2) NASA does not allow for payment of profit or fee to commercial 
firms under grant awards.
    (3) When applying the policies set forth under Sec. 1260.74, the 
grant officer shall vest title to any equipment purchased under the 
grant with the Government. The special condition at Sec. 1260.67, 
Equipment and Other Property Under Grants With Commercial Firms, shall 
be incorporated into all grants with commercial firms in place of the 
provision at Sec. 1260.27, Equipment and Other Property.
    (4) Due to differing NASA patent policies applicable to large 
businesses, special conditions at Sec. 1260.57, New Technology, and 
Sec. 1260.58, Designation of New Technology Representative and Patent 
Representative, shall be incorporated into all grants with commercial 
firms other than those with small businesses, in place of the provision 
at Sec. 1260.28, Patent Rights. Grants with small businesses should 
retain the Sec. 1260.28 provision.
    (5) Payments under grants with commercial firms will be made based 
on incurred costs. NASA Form 272 is not required. Commercial firms will 
be required to submit invoices on a no more than quarterly basis. 
Payments to be made on a more than quarterly basis require the written 
approval of the grant officer. The center finance office should also be 
informed when payments are to be made on other than a quarterly basis. 
The special condition at Sec. 1260.68, Invoices and Payments Under 
Grants With Commercial Firms, shall be incorporated into all grants with 
commercial firms in place of the provision at Sec. 1260.26, Financial 
Management.
    (6) Payments will be made to commercial firms via electronic funds 
transfer. The special condition at Sec. 1260.69, Electronic Funds 
Transfer Payment Method, shall be incorporated into all grants with 
commercial firms.
    (7) Delegation of grant administration functions consistent with the 
policies set forth at Sec. 1260.70 (i.e., property administration and 
closeout are to be delegated) will be made to the cognizant field office 
of the Defense Contract Management Agency instead of to the Office of 
Naval Research. Delegations will be made using NASA Form 1674, Letter of 
Delegation, for the Administration of Grants and Cooperative Agreements 
(Exhibit F to subpart A of this part 1260, available at the address 
given in Exhibit F). Cognizant offices for performing administration 
under individual grants are set forth in the ``DoD Directory of Contract 
Administration Services Components,'' which is available on the internet 
at: http://www.dcmc.hq.dla.mil/casbook/casbook.htm



Sec. 1260.5  Amendment.

    This part 1260 will be amended by publication of changes in the 
Federal Register. Changes will be issued as Grant Notices and 
incorporated into the official version of the handbook located at the 
internet web site.



Sec. 1260.6  Publication.

    The official site for accessing the NASA Grant and Cooperative 
Agreement Handbook, including current Grant Notices, is on the internet 
at: http://ec.msfc.nasa.gov/hq/grcover.htm

[[Page 279]]



Sec. 1260.7  Deviations.

    (a) A deviation is required for any of the following:
    (1) When a prescribed provision (but not a special condition) set 
forth verbatim in this part 1260 is modified or omitted.
    (2) When a provision is set forth in this part 1260, but not for use 
verbatim, and the Center substitutes a provision which is inconsistent 
with the intent, principle, and substance of the provision.
    (3) When a form prescribed by this part 1260 is altered or another 
form is used in its place.
    (4) When limitations, imposed by this handbook upon the use of a 
grant provision, form, procedure, or any other grant action, are 
changed.
    (5) When a form is created for recipient use that constitutes a 
``Collection of Information'' within the meaning of the Paperwork 
Reduction Act (44 U.S.C. 35) and its implementation in 5 CFR part 1320.
    (b) Requests for authority to deviate from this part 1260 shall be 
submitted to the Office of Procurement, NASA Headquarters, Procurement 
Operations Division (HS). Requests, signed by the procurement officer, 
shall contain:
    (1) A full description of the deviation, the circumstances in which 
it will be used, and identification of the requirement from which a 
deviation is sought;
    (2) The rationale for the request, pertinent background information, 
and the intended effect of the deviation;
    (3) The name of the recipient, identification of the grant affected, 
and the dollar value;
    (4) A statement as to whether the deviation has been requested 
previously, and, if so, details of that request; and
    (5) A copy of legal counsel's concurrence or comments.
    (c) Where it is necessary to obtain a deviation on OMB Circular A-
110 (subpart B of this part 1260), Code HS will process all necessary 
documents in accordance with Sec. 1260.104.

                         Pre-Award Requirements



Sec. 1260.10  Proposals.

    (a) Consistent with 31 U.S.C. 6301(3), NASA's policy is to use 
competitive procedures to award grants whenever possible. A grant can 
result from:
    (1) A proposal submitted in response to a Broad Agency Announcement 
(BAA) such as a NASA Research Announcement (NRA) or an Announcement of 
Opportunity (AO), a Cooperative Agreement Notice (CAN), an Agencywide 
program announcement such as the Graduate Student Research Program, or 
other forms of announcements approved by the Associate Administrator for 
Procurement (HS). NRA's are described in the NASA FAR Supplement (NFS) 
48 CFR 1835.016. AO's are described in 48 CFR part 1872.
    (2) An unsolicited proposal. (See Sec. 1260.17.)
    (b) The proposal shall contain a detailed narrative description of 
the work to be undertaken, including the objectives of the project and 
the applicant's plan for carrying it out.
    (1) All proposals shall include budget data as prescribed in the 
Budget Summary (Exhibit A to subpart A of this part 1260, available at 
the address given in Exhibit A). Narrative detail must support the 
proposed budget as required in Exhibit A.
    (i) The recipient institution is responsible for ensuring that costs 
charged are allowable, allocable, and reasonable under the applicable 
cost principles governed by OMB Circular No. A-21 or A-122. For other 
details see Sec. 1260.127.
    (ii) Subject to applicable cost principles, facilities and 
administrative cost rates are negotiated between recipients and the 
cognizant agencies assigned under OMB Circular No. A-21. NASA is 
required to apply the applicable negotiated rate for all grants awarded 
to the recipient.
    (iii) NASA may accept cost sharing when voluntarily offered. For 
further guidance see Sec. 1260.123. For grants and cooperative 
agreements with commercial organizations that involve costs sharing, see 
14 CFR part 1274. The amount of cost sharing will not be a factor in 
determining whether to select a proposal for award. However, recipients 
may be requested to secure nonfederal matching funds equal to the 
program portion of training and education grants. In accordance with

[[Page 280]]

NASA policy to foster continuity of research, multiple year grant 
proposals are encouraged, where appropriate, for a period generally up 
to three years. Proposals for multiple year grants shall describe the 
entire research project and include a complete budget for year one and 
separate estimates for each subsequent year.
    (2) A Taxpayer Identification Number (TIN) must be included with the 
address listed on the proposal. If an award is made, advance payments 
cannot be made without a TIN (31 U.S.C. 7702(c)(1)).
    (3) Prior to implementation of the Integrated Financial Management 
(IFM) System at each center, all grant and cooperative agreement 
recipients are required to register in the Department of Defense (DoD) 
Central Contractor Registration (CCR) database. Registration is required 
in order to obtain a Commercial and Government Entity (CAGE) code, which 
will be used as a grant and cooperative agreement identification number 
for the new system. The grant officer shall verify that the prospective 
awardee is registered in the CCR database using the DUNS number or, if 
applicable, the DUNS+4 number, via the Internet at http://
www.ccr2000.com or by calling toll free: 800-841-4431, commercial: 696-
961-5757.
    (c)(1) Grant officers are required to ensure that all necessary 
certifications, disclosures, and assurances have been obtained prior to 
awarding a grant or cooperative agreement. In order to reduce paper work 
required by the submitting institutions, and as directed by NASA; 
signature by the Authorizing Institutional Representative on the 
proposal Cover Page may confirm that all necessary certifications and 
assurances are met.
    (2) Each new proposal shall include a certification for debarment 
and suspension under the requirements of 14 CFR 1265.510 and 1260.117.
    (3) Each new proposal for an award exceeding $100,000 shall include 
a certification, and a disclosure form (SF LLL) if required, on Lobbying 
under the requirements of 14 CFR 1271.110 and 1260.117.
    (4) Each application for funding must contain assurances on NASA 
Form 1206, or specifically identify and make reference to an assurance 
that the recipient's programs and activities comply with civil rights 
and nondiscrimination statutes specified in 14 CFR parts 1250 through 
1253. The assurances provided on NASA Form 1206 shall suffice for all 
proposals of an applicant, if they remain current and accurate. An 
applicant may incorporate these assurances by reference in subsequent 
applications to NASA.
    (d)(1) In accordance with E.O. 13202 of February 17, 2001, 
``Preservation of Open Competition and Government Neutrality Towards 
Government Contractors' Labor Relations on Federal and Federally Funded 
Construction Projects'', as amended on April 6, 2001, the Government, or 
any construction manager acting on behalf of the Government, shall not--
    (i) Require or prohibit recipients, potential recipients or 
subrecipients to enter into or adhere to agreements with one or more 
labor organizations (as defined in 42 U.S.C. 2000e(d)) on the same or 
other related construction projects; or
    (ii) Otherwise discriminate against recipients, potential recipients 
or subrecipients for becoming, refusing to become, or remaining 
signatories or otherwise adhering to agreements with one or more 
organizations, on the same or other related construction projects.
    (2) Nothing in this section prohibits the recipient, potential 
recipients or subrecipients from voluntarily entering into project labor 
agreements.
    (3) The Assistant Administrator for Procurement may exempt a 
construction project from this policy if, as of February 17, 2001--
    (i) The agency or a construction manager acting on behalf of the 
Government had issued or was party to bid specifications, project 
agreements, agreements with one or more labor organizations, or other 
controlling documents with respect to that particular project, which 
contained any of the requirements or prohibitions in paragraph (d)(1)of 
this section; and
    (ii) One or more construction contracts (includes any contract 
awarded by the recipient) subject to such requirements or prohibitions 
had been awarded.

[[Page 281]]

    (4) The Assistant Administrator for Procurement may exempt a 
particular project, contract, or subcontract from this policy upon a 
finding that special circumstances require an exemption in order to 
avert an imminent threat to public health or safety, or to serve the 
national security. A finding of ``special circumstances'' may not be 
based on the possibility or presence of a labor dispute concerning the 
use of contractors or subcontractors who are nonsignatories to, or 
otherwise do not adhere to, agreements with one or more labor 
organizations, or concerning employees on the project who are not 
members of, or affiliated with, a labor organization.

[65 FR 62900, Oct. 19, 2000, as amended at 66 FR 54121, Oct. 26, 2001; 
67 FR 77667, Dec. 19, 2002; 68 FR 35290, June 13, 2003]



Sec. 1260.11  Evaluation and selection.

    (a) Technical evaluation of proposals will be conducted by the 
cognizant NASA technical office and may be based on peer reviews.
    (b) Under NRA's, AO's, other BAA's, and CAN's, the selecting 
official will furnish documentation requested by the grant officer, 
(including a copy of the NRA, selection statement, and peer review 
evaluation if requested), to confirm that the award is being made as a 
result of a selection under a NRA, AO, other BAA, or CAN. The technical 
office will forward to the grant office a completed award package, 
including a funded procurement request, technical evaluation of the 
proposed budget, and other support documentation, and any data 
deliverables that may be required when potentially hazardous operations, 
such as those related to flight and/or mission critical ground systems 
have been proposed (e.g. Payload Safety Data Review Package) at least 29 
days prior to the requested award date, or before the expiration of the 
funded period in the case of the renewal of an existing effort.
    (c) If a proposal is not selected, the proposer will be notified by 
the selecting official in accordance with the procedures set forth in 
the NRA, AO, CAN, or BAA.
    (d) For unsolicited proposals, see Sec. 1260.17.
    (e) For awards made non-competitively, written justifications for 
equipment or travel will be submitted by the technical office for grant 
officer approval when more than half of the proposed budget is for 
equipment or travel and associated indirect cost. The justification 
shall describe the extent to which the equipment or travel is necessary. 
The grant officer's signature on the award will indicate approval of the 
justification.
    (f) The evaluation of the proposal budget will conform to the 
following procedure:
    (1) The technical officer will review the proposer's estimated cost 
for conformance to program requirements and fund availability. The 
results of this review shall be recorded in Column B of the proposed 
Budget Summary Form (Exhibit A to subpart A of this part 1260, available 
at the address given in Exhibit A). New budgets are not required when 
the program office recommended funding is within twenty percent (20 
percent) of the proposed amount, provided that, if requested by the 
proposer, a revised scope of work based on the recommended funding is 
submitted by the proposer for acceptance by the technical officer. 
However, when funding decreases in equipment and/or subcontracts are 
involved, the cognizant program office is required to identify the cost 
element(s) affected by the change in funding level.
    (2) The grant officer will review the budget, and any changes made 
by the technical officer, to identify any item which may be unallowable 
under the cost principles, or which appears unreasonable or unnecessary. 
The grant officer will complete Column C of the Budget Summary after 
discussing significant changes with the recipient and/or technical 
office. Requests for details from the recipient should be limited.
    (3) The grant officer will address requests for direct charge of 
equipment in the negotiation summary, and state whether the purchase is 
approved as a direct cost.
    (g) 42 U.S.C. 2459d prohibits NASA from funding any grant for longer 
than one year if the effect is to provide a guaranteed customer base for 
new commercial space hardware or services.

[[Page 282]]

The only exception would be if an Appropriations Act specifies the new 
commercial space hardware or services to be used.
    (h) NASA reserves the right to either fully fund or incrementally 
fund grants based on fiscal law and program considerations. Incremental 
funding of grants and cooperative agreements shall conform to the 
following procedure:
    (1) When the period of performance for a grant crosses Government 
Fiscal Years, the grant will usually be incrementally funded, using 
appropriations from different Government Fiscal Years. In other 
circumstances, incremental funding may be appropriate. The special 
condition at Sec. 1260.53, Incremental Funding, will be included in any 
grant that is incrementally funded. The grant officer will determine the 
number of incremental funding actions that will be allowed.
    (2) Specific limitations on incremental funding are as follows:
    (i) Grants that are funded using appropriations from different 
Government Fiscal Years should provide funding from the prior fiscal 
year that carries at least one month into the subsequent fiscal year in 
order to facilitate transition of the grant to the subsequent fiscal 
year's funding cycle.
    (ii) Only those grants whose anticipated funding exceeds $100,000 of 
appropriations from a single Government Fiscal Year may be incrementally 
funded within that fiscal year's appropriations.
    (iii) Incremental funding actions to obligate or deobligate funds 
shall not total less than $25,000 unless the action is necessary to 
comply with the requirement to use appropriations from different 
Government Fiscal Years, to fully fund a grant, to close out a grant, or 
to make a corrective accounting adjustment.
    (3) On an exception basis, and with the concurrence of the 
installation Chief Financial Officer (CFO) or Deputy CFO for Resources, 
the procurement officer may waive the restrictions set forth in 
paragraphs (h)(2)(i) through (h)(2)(iii) of this section for individual 
funding actions on individual grants. The procurement officer shall 
maintain a record of all such approvals during the fiscal year.
    (4) The restrictions set forth in paragraphs (h)(2)(i) through 
(h)(2)(iii) of this section are not applicable during the period of a 
continuing resolution. During such a period, NASA will nonetheless 
endeavor to fund individual grants using reasonably sized increments.
    (i) Proposals for efforts that involve printing, binding, and 
duplicating in excess of 25,000 pages are subject to the Government 
Printing and Binding Regulations, No. 26, February 1990, S. Pub. 101-9, 
U.S. Government Printing Office, Washington, DC 20402, published by the 
Congressional Joint Committee on Printing. The technical office will 
refer such proposals to the Installation Central Printing Management 
Officer (ICPMO). The grant officer will be advised in writing of the 
results of the ICPMO review.
    (j) The provision at Sec. 1260.30, Rights in Data, is to be 
inserted as a standard provision into grants and cooperative agreements 
that don't require cost sharing. Additional language is required for 
cost sharing and/or matching efforts, and in cooperative agreements, as 
set forth in the provision.
    (k) By acceptance of a grant (containing the provision at Sec. 
1260.34) the recipient agrees that it is in compliance with the Clean 
Air and Federal Water Pollution Control Acts. The Administrator may 
approve exemptions from this prohibition under certain circumstances 
under Executive Order 11738. Requests for exemptions or renewals thereof 
shall be made to the Office of Procurement, NASA Headquarters, Program 
Operations Division (Code HS), Washington, DC 20546.
    (l) Requests for acquisition of property may be made by a recipient 
either as part of the original budget proposal or subsequent to award. 
Comprehensive guidance on evaluating requests for acquisition of 
property, vesting of title, and administration issues, is set forth at 
Sec. 1260.74.

[65 FR 62900, Oct. 19, 2000, as amended at 66 FR 54121, Oct. 26, 2001; 
67 FR 30544, May 7, 2002; 68 FR 28709, May 27, 2003; 68 FR 35290, June 
13, 2003]



Sec. 1260.12  Choice of award instrument.

    (a) This section and Sec. 1260.111 provide guidance on the 
appropriate choice of

[[Page 283]]

award instruments consistent with 31 U.S.C. 6301 to 6308. Throughout 
Sec. 1260.12, the term ``grant'' does not include ``cooperative 
agreements.''
    (b)(1) A procurement contract is a mutually binding legal 
relationship obligating the seller to furnish supplies or services 
(including construction), and the buyer pays for them.
    (2) The principal purpose of a procurement contract is to acquire, 
for NASA's direct use or benefit, a well-defined, specific effort 
clearly required for the accomplishment of a scheduled NASA mission or 
project.
    (3) If it is determined that a procurement contract is the 
appropriate type of funding instrument to meet NASA's purposes, the 
procurement shall be conducted under the FAR and the NFS (48 CFR Chapter 
18).
    (4) If an action is to be awarded for a dollar amount below the 
simplified acquisition threshold, the action may be completed by a 
contracting officer as a purchase order. The purchase order must be 
properly modified to include necessary language pertaining to data 
rights, key personnel requirements, and any other necessary requirements 
as determined by the contracting officer.
    (c) A grant shall be used as the legal instrument to reflect a 
relationship between NASA and a recipient whenever the principal purpose 
is the transfer of anything of value to the recipient to accomplish a 
public purpose of support or stimulation authorized by Federal statute. 
Grants are distinguished from cooperative agreements in that substantial 
involvement is not expected between NASA and the recipient when carrying 
out the activity. Grants are distinguished from contracts in that grants 
provide financial assistance to the recipient to conduct a fairly 
autonomous program; contracts entail acquisition. Various types of NASA 
grants contain different provisions and conditions as described in 
Sec. Sec. 1260.20 and 1260.50. The major types of grants and 
cooperative agreements are defined as follows. Grants and cooperative 
agreements to carry out other authorized purposes should be used to the 
extent appropriate, and must be in compliance with OMB Circular A-110.
    (1) Research grant. A research grant shall be used to accomplish a 
NASA objective through stimulating or supporting the acquisition of 
knowledge or understanding of the subject or phenomena under study, or 
attempting to determine and exploit the potential of scientific 
discoveries or improvements in technology, materials, processes, 
methods, devices, or techniques and advance the state of the art. The 
recipient will bear prime responsibility for the conduct of research, 
and exercises judgment and original thought toward attaining the 
scientific goals within broad parameters of the research areas proposed 
and the resources provided;
    (2) Education grant. Students and faculty receiving direct support 
under a NASA education grant must be U.S. citizens. An education grant 
is an agreement that provides funds to an educational institution or 
other nonprofit organizations within one or more of the following areas:
    (i) Capturing student interest and/or improving student performance 
in science, mathematics, technology, or related fields;
    (ii) Enhancing the skill, knowledge, or ability of teachers or 
faculty members in science, mathematics, or technology;
    (iii) Supporting national educational reform movements;
    (iv) Conducting pilot programs or research to increase participation 
and/or to enhance performance in science, mathematics, or technology 
education at all levels; and
    (v) Developing instructional materials (e.g., teacher guides, 
printed publications, computer software, and videotapes) or networked 
information services for education;
    (3) Training grant. A training grant is an agreement that provides 
funds primarily for scholarships, fellowships, or stipends to students, 
teachers, and/or faculty.
    (i) NASA training grants are awarded to colleges, universities, or 
other non-profit organizations; not to individual students, teachers, or 
faculty members. It is the responsibility of the institution receiving 
the grant to approve the faculty, teachers, and/or students who will 
participate in the specific program, in cooperation with NASA. If a

[[Page 284]]

student, teacher, or faculty member ceases to participate in the program 
for any reason, the institution, with prior NASA approval, may appoint 
another student, teacher, or faculty member to complete the remaining 
portion of the grant period. Replacement students, teachers, and/or 
faculty electing to apply for the following program year are not 
automatically entitled to an award and are subject to the evaluation/
selection procedures administered to new applicants. Any participant 
receiving support under a NASA training grant may not concurrently hold 
another Federal fellowship or traineeship.
    (ii) No applicant shall be denied consideration or appointment on 
the grounds of race, creed, color, national origin, age, sex, or 
disability.
    (iii) Students and faculty receiving direct support under a NASA 
training grant must be U.S. citizens, except for those supported by the 
NASA Earth System Science Fellowship Program, the Graduate Student 
Fellowship in Global Change Research Program, and the GLOBE Program.
    (iv) Duration of the award is program specific. Refer to program 
policies and procedures for details. Renewal is contingent upon a 
successful performance evaluation as prescribed by the program, 
concurrence by the NASA technical officer, and the availability of 
funds.
    (v) No substantial involvement is expected between NASA and the 
recipient. A student or faculty member receiving support under a NASA 
training grant does not incur any formal obligation to the Government.
    (vi) The use of training grant funds to acquire equipment, or to 
acquire or construct facilities will not be permitted. Government 
furnished equipment will not be provided.
    (vii) An Administrative Report must be submitted under the 
guidelines described by the specific program policies and procedures.
    (4) Facilities grant. A facilities grant is used to provide for the 
acquisition, construction, use, maintenance, and disposition of 
facilities. Facilities, as used in this section, means property used for 
production, maintenance, research, development, or testing. Prior 
approval by the Associate Administrator of Procurement is required 
before proceeding with a facilities grant. To obtain prior approval, a 
package will be forwarded to the Director, Program Operations Division 
(HS), during the planning phase of the grant, that includes pertinent 
background information, details on Congressional Authorization, dollar 
value, and name of the recipient. Other information, such as a copy of 
the proposed facility grant award document, is not required. It is 
unlikely an award will be approved unless specifically authorized by 
Congress. A review by legal counsel to assure legal sufficiency is also 
required.
    (d) Cooperative agreement. A cooperative agreement shall be used as 
the legal instrument reflecting a relationship between NASA and a 
recipient whenever the principal purpose is the transfer of anything of 
value to the recipient to accomplish a public purpose of support or 
stimulation authorized by Federal statute, and substantial involvement 
is anticipated between NASA and the recipient during performance of the 
contemplated activity (31 U.S.C. 6305). Characteristics inherent in a 
cooperative agreement include those that apply to a grant, plus the 
following:
    (1) Substantial NASA involvement in and contribution to the 
technical aspects of the effort are necessary for its accomplishment. 
This could involve an active NASA role in collaborative relations, 
access to a NASA site or equipment, or sharing NASA facilities and 
personnel. For example, a university investigator could work for a 
substantial amount of time at a NASA Center, a NASA investigator could 
work at a university, or when the collaboration is such that a jointly 
authored report or education curriculum product is appropriate;
    (2) The project, conducted as proposed, would not be possible 
without extensive NASA-recipient technical collaboration;
    (3) The nature of the collaboration shall be clearly defined and 
specified in the special condition at Sec. 1260.51.
    (e)(1) Grants and cooperative agreements with foreign organizations. 
Grants and cooperative agreements with foreign organizations provide for

[[Page 285]]

research to be performed in whole, or in part, by a foreign 
organization, with funding being provided by NASA to the foreign 
organization as reimbursement for the work performed.
    (2) It is NASA policy that, in general, research with foreign 
organizations will not be conducted through grants or cooperative 
agreements, but instead will be accomplished on a no-exchange-of-funds 
basis. In these cases, NASA enters into agreements undertaking projects 
of international scientific collaboration. NASA policy on performing 
research with foreign organizations on a no-exchange-of-funds basis is 
set forth at NFS 1835.016-70. In rare instances, NASA may enter into an 
international agreement under which funds will be transferred to a 
foreign recipient.
    (3) Grants and cooperative agreements to foreign organizations are 
made on an exceptional basis only. Awards require the prior approval of 
the Headquarters Office of External Relations (Code I) and the 
Headquarters Office of the General Counsel (Code G). Requests to award 
foreign grants or cooperative agreements are to be coordinated through 
the Office of Procurement, Program Operations Division (Code HS). 
Requests for approval shall contain:
    (i) The identity of the foreign entity, the country or countries 
involved, and the purpose of the grant or cooperative agreement.
    (ii) The Space Act Agreement(s) or underlying international 
agreement involved, if any.
    (iii) A description of the effort to be undertaken by the entity 
described in paragraph (e)(3)(i) of this section, including their dollar 
value.
    (iv) The reason why the grant or cooperative agreement requires a 
placement with a foreign organization.
    (v) The reason why the work can not be accomplished on a no exchange 
of funds basis.
    (4) Grants and cooperative agreements to foreign organizations 
require a review by the Office of General Counsel.
    (5) The requirements of this section do not apply to the purchase of 
supplies or services (excluding research) from non-U.S. sources by U.S. 
grant or cooperative agreement recipients, when necessary to support 
research efforts.
    (f)(1) The decision whether to use a contract, grant or cooperative 
agreement as an award instrument must be based on the principal purpose 
of the relationship. When NASA, within its authority, enters into a 
transaction where the principal purpose is to accomplish a public 
purpose of support or stimulation authorized by Federal statute, a grant 
or a cooperative agreement is the appropriate instrument. Conversely, if 
the principal purpose of a transaction is to accomplish a NASA 
requirement, i.e., to produce something for NASA's own use, a 
procurement contract is the appropriate instrument. Two essential 
questions must be asked to ensure that a grant or cooperative agreement 
is the appropriate instrument. The first question is: Will NASA be 
directly harmed in furthering a specific NASA mission requirement if the 
effort is not accomplished? The answer to this question must be ``no.'' 
The second question is: Is the work being performed by the recipient 
primarily for its own purposes, which NASA is merely supporting with 
financial or other assistance? The answer to this question must be 
``yes.'' If these criteria are met, then the effort is not a NASA 
requirement, and can then be considered as to whether it supports or 
stimulates a public purpose.
    (2) In applying the principal purpose test, it must be determined 
whether the Government is the direct beneficiary or user of the 
activity. If NASA provides the specifications for the project; or is 
having the project completed based on its own identified needs; or will 
directly use the report or result of the project for a scheduled NASA 
mission, then, in most cases, the principal purpose is to acquire 
property or services for the direct benefit or use of NASA, and thus, a 
contractual relationship exists. However, there may be cases where NASA 
expects to derive some incidental use or benefit from funded activities. 
In fact, any extramural expenditure that furthers the Agency's goals or 
mission can be said to be of benefit or use to the Government. But not 
every expenditure produces for the Government a benefit or

[[Page 286]]

use that is direct; i.e., immediate, uninterrupted, or specific. Where 
an expenditure will produce a benefit or use that is only indirect in 
nature, a grant or cooperative agreement may be used.
    (3) The status of the entity involved is not a primary factor in 
determining the appropriate award instrument. For example, an entity 
that operates on a non-profit basis may receive funding through a 
contract, and is not limited to receiving grants or cooperative 
agreements. Similarly, a profit-making firm may receive funding through 
grants, cooperative agreements, or contracts.
    (4) NASA offices may be mandated through their missions to support 
specific scientific, educational, or training programs. The office may 
be accountable to NASA management, the Administration, or Congress for 
oversight and proper implementation of the program, may require direct 
oversight, may be directly accountable for the results of the program 
and that the work be successfully completed. Whenever the office 
requesting the grant or cooperative agreement would be directly harmed 
in performing its mission if an award was not made, a grant or 
cooperative agreement is not appropriate. Specific examples of 
situations requiring special scrutiny include--
    (i) Education grants that for the administration of a program for 
which the education office is directly responsible;
    (ii) Research or education grants to establish and support 
university laboratories on a non-competitive basis, with the resulting 
work of direct benefit to NASA; or
    (iii) Training grants that hire university students, on a non-
competitive basis, to perform work at a NASA Center in direct support of 
NASA personnel, and perform work which is required in support of a NASA 
mission.
    (5) A grant may be used to provide funding to an association to hold 
a conference (among its members and NASA officials) where the benefits 
flow primarily to the association and its members, not to NASA. The 
principal purpose will be to advance research or other purposes of the 
association. Thus, NASA may not direct an association in arranging the 
conference or in providing other services for NASA's benefit. The 
conference should be run by the association, not by NASA. Conferences 
sponsored or initiated by NASA primarily to meet a specific NASA need or 
obtain information for the direct benefit of NASA must be supported by 
means of a contract.



Sec. 1260.13  Award procedures.

    (a) Award instruments are classified as follows:
    (1) Annual grants are grants awarded for a short term (e.g., on an 
annual basis).
    (2) Multiple year grants support research projects that may span 
several years. NASA policy is to make maximum use of multiple year 
grants. A Multiple Year Grant is generally selected for a period of 
three years in keeping with NASA's policy calling for research to be 
peer reviewed at least every three years. Grants with periods of 
performance in excess of three years may be appropriate when the NASA 
technical office determines at the inception of the grant that a period 
of performance in excess of three years is necessary to complete a 
discrete research effort. However, grants that will exceed $5 million 
and have a period of performance in excess of 5 years shall require the 
approval of the Assistant Administrator for Procurement (Code HS) prior 
to award. Requests for approval shall include a justification for 
exceeding 5 years and evidence that the extended years can be reasonably 
estimated. Requests for approval are not required when the 5-year 
limitation is exceeded due to a no cost extension.
    (i) If the decision to provide multiple year funding to a research 
proposal is made, the special condition at Sec. 1260.52, Multiple Year 
Grant or Cooperative Agreement, will be included in the award.
    (ii) Periods approved under the Multiple Year Grant or Cooperative 
Agreement special condition at Sec. 1260.52, and funded at the levels 
specified in the special condition, are not considered to be new awards. 
Therefore, new proposals, new proposal-related certifications (such as 
Disclosure of Lobbying Activities, and Debarment and Suspension), new 
technical evaluations, and new budget proposals are not required,

[[Page 287]]

as long as this information for the multiple year period was reviewed 
and approved as part of the original proposal.
    (iii) If NASA program constraints or developments within the 
research project dictate a reduction in the funding level specified 
under a Multiple Year Grant period, research may continue at the reduced 
level under the terms of the provisions; however, the recipient may 
rebudget under the grant provisions to keep the project within the 
funding actually provided.
    (3) An augmentation to a grant may be issued as a supplement at any 
time when work is introduced which is outside the scope of the approved 
proposal or when there is a need for substantial unanticipated funding. 
The grant officer must first determine whether the augmentation requires 
a separate approval as a non-competitive addition to the work to be 
performed under the grant. Augmentations require the submission of 
revised budget proposals and technical evaluations covering the 
additional work. Since augmentations will be performed within the 
existing period of performance, certifications will not normally be 
required.
    (4) A grant extension may be placed to extend the grant beyond the 
expiration date, in accordance with the provision at Sec. 1260.23, 
Extensions, if additional time beyond the established period of 
performance is required to assure adequate completion of the original 
scope of work within the available funding.
    (5) Grant renewals provide for continuation of research beyond the 
original scope, period of performance and funding levels; therefore, new 
proposals, certifications and technical evaluations are required prior 
to the execution of a grant renewal. Grant renewals will be awarded as 
new grants. Continued performance within a period specified under the 
Multiple Year Grant provision does not constitute a renewal. For 
research originally awarded through a competitive NRA, CAN, or other 
competitive announcement that has completed its period of performance, 
peer review of a proposal to continue the research should be 
accomplished prior to selecting the research grant for renewal. If the 
effort was originally awarded through an unsolicited proposal, a new 
justification to accept the unsolicited proposal would be required 
(however, also see Sec. 1260.12(f)(1)). Multiple year grant special 
conditions may be incorporated into renewals.
    (b) While NASA normally provides full funding support for research 
grants, alternate methods of grant funding are as follows:
    (1) Since NASA grant recipients usually gain no measurable 
commercial or economic benefit from grants, other than conducting 
research, cost sharing for research grants is not generally required. 
NASA may, however, accept cost sharing when voluntarily offered. 
Additionally, in instances when the grant officer determines that the 
recipient will benefit from the research results through sales to non-
Federal entities, cost sharing based upon this mutuality of interest 
will apply. See Sec. 1260.123. When cost sharing is used, the grant 
officer shall insert a Special Condition substantially as shown in Sec. 
1260.54, Cost Sharing. (See 14 CFR part 1274 for grants and cooperative 
agreements with commercial organizations involving cost sharing.)
    (2) NASA may provide partial support for a research project or 
conference where additional funding is being provided by other Federal 
agencies. If the grant also involves cost sharing by the recipient, the 
grant officer will ensure that the recipient's share does not include 
any Federal funds.

[65 FR 62900, Oct. 19, 2000, as amended at 68 FR 14535, Mar. 26, 2003]



Sec. 1260.14  Limitations.

    (a) NASA does not award grants merely to provide donative assistance 
no matter how worthy the purpose, but to the extent that appropriations 
are available to carry out authorized Agency programs. Research in any 
academic discipline related to NASA interests normally will qualify. 
However, advice of legal counsel should be sought in unusual situations, 
or when unusual project activities or organizational attributes are 
evident.
    (b) It is NASA's policy that non-monetary (zero dollar) grants or 
cooperative agreements shall not be used, except for no-cost extensions.

[[Page 288]]

    (c) Loans of Government personal property not associated with a 
contract, grant, or cooperative agreement under 31 U.S.C. 6301 to 6308, 
and made under the Space Act of 1958, should be consummated as loan 
agreements. Also, excess Government research property may be donated to 
educational institutions and nonprofit organizations pursuant to 15 
U.S.C. 3710(I). See Sec. 1260.133(a)(2).
    (d) Neither grants nor cooperative agreements shall be used as legal 
instruments for consulting service arrangements.



Sec. 1260.15  Format and numbering.

    (a) A grant shall be brief, containing only those provisions and 
special conditions necessary to protect the interests of the Government.
    (b) Cover page formats shown in Exhibit B to subpart A of this Part 
1260 shall be used for all NASA grant and cooperative agreement award 
documents. Provisions for grants with U.S. organizations shall be 
incorporated by reference, and preprinted checklists may be used 
(Exhibit C to subpart A of this part 1260). Both special conditions and 
provisions for grants with foreign organizations will be printed in full 
text. An acceptance block may be added when the grant officer finds it 
necessary to require bilateral execution of the grant. Program budgets 
are not generally attached to the award document. When it is necessary 
to attach the budget due to revisions to the original proposed budget or 
other reasons, this information should be suitably marked as 
confidential, and is not be disclosed outside of the Government without 
the consent of the grantee.
    (c) Grants and cooperative agreements will be sequentially numbered. 
The Identification Numbering System to be used for all types of NASA 
grants and cooperative agreements will be applied as follows:
    (1) Agency prefix. NASA's agency prefix shall be represented by the 
characters ``NN''.
    (2) Center. The Center Identification Number shall conform to NASA 
FAR Supplement (NFS) 48 CFR 1804.7102(a).
    (3) Fiscal year. The fiscal year shall be represented as two digits.
    (4) Action number. The action number shall be identified using a two 
digit alpha and two digit numerical character from AA01 through ZZ99.
    (5) Procurement code. Cooperative Agreements will be identified 
using ``A'' as the procurement code. Grants (other than training grants) 
will be identified using ``G'' as the procurement code. Training Grants 
will be identified using ``H'' as the procurement code.
    (6) As an example of the above set forth methodology, the first two 
training grants awarded by Glenn Research Center in Fiscal Year 2004 
would be NNC04AA01H and NNC04AA02H.
    (7) The Catalog of Federal Domestic Assistance (CFDA) Numbers does 
not apply to NASA grants.

[65 FR 62900, Oct. 19, 2000, as amended at 68 FR 28709, May 27, 2003; 68 
FR 54655, Sept. 18, 2003]



Sec. 1260.16  Distribution.

    (a) Copies of grants and supplements will be provided to--
    (1) Payment offices (original copy);
    (2) Technical officers;
    (3) Administrative grant officers when delegated;
    (4) The NASA Center for AeroSpace Information (CASI), Attn: Document 
Processing Section, 7121 Standard Drive, Hanover, MD 21076; and
    (5) Other appropriate offices as determined by the grant officer.
    (b) In addition to receipt of grants and supplements, the 
administrative grant officer will receive a copy of the approved budget.
    (c) The file will record the addresses for distribution.



Sec. 1260.17  Evaluation and selection of unsolicited proposals.

    (a) Unsolicited proposals are for new and innovative ideas. Federal 
Acquisition Regulation (FAR) 48 CFR Subpart 15.6 and NASA FAR Supplement 
(NFS) 48 CFR Subpart 1815.6 set out NASA's procedures for their 
submission and evaluation. Consult ``Guidance for the Preparation and 
Submission of Unsolicited Proposals'' (see http://ec.msfc.nasa.gov/hq/
library/unSol-Prop.html) for additional information. NASA recommends 
contact with NASA technical personnel before submission

[[Page 289]]

of an unsolicited proposal to determine if preparation is warranted. 
These discussions should be limited to understanding NASA's need for 
research and do not jeopardize the unsolicited status of any 
subsequently submitted proposal.
    (b) NASA will evaluate unsolicited proposals the same whether 
awarded as grants or contracts. However, the requirement to synopsize 
set out in FAR Part 5 does not apply to grants.
    (c) All unsolicited proposals recommended for acceptance as grants 
shall be supported by a Justification for Acceptance of an Unsolicited 
Proposal (JAUP) prepared by the cognizant technical office. The JAUP 
shall be submitted for the approval of the grant officer after review 
and concurrence at a level above the technical officer. However, review 
and concurrence are not required for technical officers at a division 
chief or higher level. The grant officer's signature awarding the grant 
constitutes approval of the JAUP.
    (d) If an unsolicited proposal will not be funded, NASA will notify 
in writing the organization or person that submitted it. The method of 
notification is at the discretion of the grant officer. Proposals will 
be returned only when requested.
    (e) Because unsolicited proposals are awarded without competition, 
written justifications for equipment and travel shall be submitted by 
the technical office to the grant officer when more than half of the 
proposed budget is for equipment, travel, and their associated indirect 
costs. The grant officer's signature awarding the grant constitutes 
approval of the justification.

[68 FR 35290, June 13, 2003]

                               Provisions



Sec. 1260.20  Provisions.

    (a) Research grants, education grants, training grants, and 
cooperative agreements with U.S. educational institutions and nonprofit 
organizations shall incorporate by reference the provisions set forth in 
Sec. Sec. 1260.21 through 1260.39. For training grants, the grant 
officer shall substitute Sec. 1260.22, Technical Publications and 
Reports, with reporting requirements as specified by the program office.
    (b) Facilities grants provisions will be selected on a case-by-case 
basis (see Sec. 1260.50).
    (c) Research grants awarded to foreign organizations, when approved 
by Headquarters, will include the following provisions at a minimum: 
Sec. Sec. 1260.21, 1260.22, 1260.23, 1260.24, 1260.25, 1260.26, 
1260.27, 1260.29, 1260.33, 1260.35, 1260.36 and 1260.37. Additional 
special conditions will be selected on a case by case basis (see Sec. 
1260.50). All provisions will be provided in full text. Referenced 
handbooks, statutes, or other regulations, which the recipient may not 
have access to, must be made available when requested by the foreign 
organization.
    (d) The provisions set forth at Sec. Sec. 1260.21 through 1260.38 
do not apply to awards made under the Federal Demonstration Partnership 
(FDP). FDP awards are subject to the FDP Phase III General Terms and 
Conditions and the NASA Agency Specific Requirements Modifications to 
the General Terms and Conditions (Exhibit D to subpart A of this part 
1260). Since these documents are provided directly to the FDP 
institutions, they are not to be attached to FDP grants. However, the 
grant officer will include a statement similar to the following on FDP 
grants: ``The Federal Demonstration Partnership General Terms and 
Conditions and NASA Agency-specific Requirements apply to this award.''
    (e) Grants or cooperative agreements awarded by NASA to the 
Commercial Space Centers under the Space Development and Commercial 
Research (SDCR) Program require special conditions in addition to those 
set forth at Sec. Sec. 1260.21 through 1260.39. SDCR Special Conditions 
are required to be included in full text for all SDCR Grants and 
Cooperative Agreements (Exhibit E to subpart A of this part 1260). 
Changes or additions to these Special Conditions must be approved by the 
Office of Space Utilization and Product Development (Code UM) prior to 
the award of the grant. Requests for changes or additions are to be 
coordinated through the Office of Procurement, Program Operations 
Division (Code HS).

[[Page 290]]

    (f) Grants and cooperative agreements awarded by NASA to commercial 
organizations where cost sharing is not required shall incorporate the 
provisions set forth at Sec. Sec. 1260.21 through 1260.39, modified as 
set forth under 1260.4(b).
    (g) Grants and cooperative agreements not specifically classified 
elsewhere in this section, but that are awarded for other authorized 
purposes, shall include provisions selected on a case-by-case basis.
    (h) Whenever the word ``grant'' appears in Sec. Sec. 1260.21 
through 1260.39, it shall be deemed to include, as appropriate, the term 
``cooperative agreement.''

[65 FR 62900, Oct. 2000, as amended at 67 FR 45790, July 10, 2002; 68 FR 
28709, May 27, 2003]



Sec. 1260.21  Compliance With OMB Circular A-110.

                   Compliance With OMB Circular A-110

                              October 2000

    This grant or cooperative agreement is subject to the requirements 
set forth in OMB Circular A-110, Uniform Administrative Requirements for 
Grants and Agreements with Institutions of Higher Education, Hospitals, 
and Other Non-Profit Organizations. Recipients are required to comply 
with the requirements of A-110, as adopted by NASA as subpart B of Part 
1260 of Title 14 of the Code of Federal Regulations. Specific provisions 
set forth in this award document are provided to supplement and clarify, 
not replace, the Circular, except in circumstances where a waiver from 
Circular requirements has been obtained by NASA.

                           [End of provision]



Sec. 1260.22  Technical publications and reports.

    (This provision describes standard reporting requirements that 
should be applied in most circumstances. The requirements set forth 
under this provision may be modified by the grant officer based on 
specific report needs for the grant or cooperative agreement, provided 
that reporting requirements do not conflict with Sec. 1260.151. Any 
special reporting requirements (e.g. Payload Safety Data Review) will be 
set forth as a special condition in the award document.)

            Technical Publications and Reports December 2003

    (a) NASA encourages the widest practicable dissemination of research 
results at any time during the course of the investigation.
    (1) All information disseminated as a result of the grant shall 
contain a statement which acknowledges NASA's support and identifies the 
grant by number (e.g., ``The material is based upon work supported by 
NASA under award No(s) GRNASM99G000001, etc.'').
    (2) Except for articles or papers published in scientific, 
technical, or professional journals, the exposition of results from NASA 
supported research should also include the following disclaimer: ``Any 
opinions, findings, and conclusions or recommendations expressed in this 
material are those of the author(s) and do not necessarily reflect the 
views of the National Aeronautics and Space Administration.''
    (3) As a courtesy, any release of a NASA photograph or illustration 
should list NASA first on the credit line followed by the name of the 
Principal Investigator's Institution. An example follows:
    ``Photograph  courtesy of 
NASA  and the 
.''
    (b) Reports shall be in the English language, informal in nature, 
and ordinarily not exceed three pages (not counting bibliographies, 
abstracts, and lists of other media). The recipient shall submit the 
following reports:
    (1) A Progress Report for all but the final year of the grant. Each 
report is due 60 days before the anniversary date of the grant and shall 
briefly describe what was accomplished during the reporting period as 
outlined in Sec. 1260.151(d). A special condition specifying more 
frequent reporting may be required.
    (2) A Summary of Research (or Educational Activity Report in the 
case of Education Grants) is due within 90 days after the expiration 
date of the grant, regardless of whether or not support is continued 
under another grant. This report shall be a comprehensive summary of 
significant accomplishments during the duration of the grant.
    (c) Progress Reports, Summaries of Research, and Educational 
Activity Reports shall include the following on the first page:
    (1) Title of the grant.
    (2) Type of report.
    (3) Name of the principal investigator.
    (4) Period covered by the report.
    (5) Name and address of the recipient's institution.
    (6) Grant number.
    (d) Progress Reports, Summaries of Research, and Educational 
Activity Reports shall be distributed as follows:
    (1) The original report, in both hard copy and electronic format, to 
the Technical Officer.
    (2) One copy to the NASA Grant Officer, with a notice to the 
Administrative Grant

[[Page 291]]

Officer, (when administration of the grant has been delegated to ONR), 
that a report was sent.
    (e) For Summaries of Research and published reports, one micro-
reproducible copy shall also be sent to the NASA Center for AeroSpace 
Information (CASI), Attn: Document Processing Section, 7121 Standard 
Drive, Hanover, MD 21076.

                           [End of provision]

[65 FR 62900, Oct. 19, 2001, as amended at 66 FR 54121, Oct. 26, 2001; 
68 FR 67364, Dec. 2, 2003]



Sec. 1260.23  Extensions.

                               Extensions

                              October 2000

    (a) It is NASA policy to provide maximum possible continuity in 
funding grant-supported research and educational activities, therefore, 
grants may be extended for additional periods of time when necessary to 
complete work that was part of the original award. NASA generally only 
approves such extensions within funds already made available. Any 
extension that would require additional funding must be supported by a 
proposal submitted at least three months in advance of the expiration 
date of the grant.
    (b) In accordance with Sec. 1260.125(e)(2), Recipients may extend 
the expiration date of a grant if additional time beyond the established 
expiration date is required to assure adequate completion of the 
original scope of work within the funds already made available. For this 
purpose, the recipient may make a one-time no-cost extension, not to 
exceed 12 months, prior to the established expiration date. Written 
notification of such an extension, with the supporting reasons, must be 
received by the NASA Grant Officer at least ten days prior to the 
expiration of the award. A copy of the extension must also be forwarded 
to cognizant Office of Naval Research office. NASA reserves the right to 
disapprove the extension if the requirements set forth at Sec. 
1260.125(e)(2) are not met.
    (c) Requests for approval for all other no-cost extensions must be 
submitted in writing to the NASA Grant Officer. Copies are to be 
forwarded to the cognizant Office of Naval Research office.

                           [End of provision]



Sec. 1260.24  Termination and enforcement.

                       Termination and Enforcement

                              October 2000

    Termination and enforcement conditions of this award are specified 
in Sec. Sec. 1260.160 through 1260.162.

                           [End of provision]



Sec. 1260.25  Change in principal investigator or scope.

                Change in Principal Investigator or Scope

                              October 2000

    The following guidance is provided as an amplification to prior 
approval requirements set forth at Sec. 1260.125(c):
    (a) The Recipient shall obtain the approval of the NASA Grant 
Officer for a change of the Principal Investigator, or for a significant 
absence of the Principal Investigator from the project, defined as a 
three month absence from the program or a 25 percent reduction in time 
devoted to the project. Significantly reduced availability of the 
services of the Principal Investigator(s) named in the grant instrument 
could be grounds for termination, unless alternative arrangements are 
made and approved in writing by the Grant Officer.
    (b) Prior written approval is required from NASA if there is to be a 
significant change in the objective or scope.

                           [End of provision]



Sec. 1260.26  Financial management.

                          Financial Management

                               August 2003

    (a) Advance payments through a Letter of Credit will be made by the 
Financial Management Office of the NASA Center assigned financial 
cognizance of the grant, using the Department of Health and Human 
Services' Payment Management System (DHHS/PMS), in accordance with 
procedures provided to the Recipient. The Recipient shall submit a 
Federal Cash Transactions Report (SF 272), and, when applicable, a 
Continuation Sheet (SF 272A) electronically to DHHS/PMS within 15 
working days following the end of each Federal Fiscal quarter (i.e., 
December 31,

[[Page 292]]

March 31, June 30, and September 30). One Federal Cash Transactions 
Report shall be submitted for all grants financed under a letter of 
credit arrangement with each NASA Center.
    (b) In addition, the Recipient shall submit a final SF 272 in paper 
form to NASA within 90 calendar days after the expiration date of the 
grant. The final SF 272 shall pertain only to the completed grant and 
shall include total disbursements from inception through completion. The 
report shall be marked ``Final''. The final SF 272 shall be submitted to 
the Financial Management Office, with a copy sent to the NASA Grant 
Officer.
    (c) Unless otherwise directed by the Grant Officer, any unexpended 
balance of funds which remains at the end of any funding period, except 
the final funding period of the grant, shall be carried over to the next 
funding period, and may be used to defray costs of any funding period of 
the grant. This includes allowing the carry over of funds to the second 
and subsequent years of a multiple year grant. This provision also 
applies to subcontractors performing substantive work under the grant. 
For grant renewals, the estimated amount of unexpended funds shall be 
identified in the grant budget section of the Recipient's renewal 
proposal. NASA reserves the right to remove unexpended balances from 
grants when insufficient efforts have been made by the grantee to 
liquidate funding balances in a timely fashion.

                           [End of provision]

[68 FR 50469, Aug. 21, 2003]



Sec. 1260.27  Equipment and other property.

                      Equipment and Other Property

                              October 2000

    (a) NASA permits acquisition of special purpose and general purpose 
equipment specifically required for use exclusively for research 
activities.
    (1) Acquisition of special purpose or general purpose equipment 
costing in excess of $5,000 (unless a lower threshold has been 
established by the Recipient) and not included in the approved proposal 
budget, requires the prior approval of the NASA Grant Officer. Grant 
awards under the Federal Demonstration Partnership are exempt from this 
requirement. Requests to the NASA Grant Officer for the acquisition of 
equipment shall be supported by written documentation setting forth the 
description, purpose, and acquisition value of the equipment, and 
including a written certification that the equipment will be used 
exclusively for research, activities. (A change in the model number of a 
prior approved piece of equipment does not require resubmission for that 
item.)
    (2) Special purpose and general purpose equipment costing in excess 
of $5,000 (unless a lower threshold has been established by the 
Recipient) acquired by the recipient under a grant or cooperative 
agreement for the purpose of research shall be titled to the Recipient 
as ``exempt'' without further obligation to NASA, including reporting of 
the equipment, in accordance with Sec. 1260.133(b). Special purpose or 
general purpose equipment costing in excess of $5,000 (unless a lower 
threshold has been established by the Recipient) acquired by the 
Recipient under a grant or cooperative agreement for non-research work 
shall be titled to the Recipient in accordance with Sec. 1260.134.
    (3) Special purpose or general purpose equipment acquired by the 
Recipient with grant funds, valued under $5,000 (unless a lower 
threshold is established by the Recipient) are classified as 
``supplies,'' do not require the prior approval of the NASA Grant 
Officer, shall vest in the Recipient and will be titled to the Recipient 
in accordance with Sec. 1260.135.
    (4) Grant funds may be expended for the acquisition of land or 
interests therein or for the acquisition and construction of facilities 
only under a facilities grant, as defined in Sec. 1260.12(c)(4).
    (b) The Recipient shall submit an annual Inventory Report, to be 
received no later than October 31 of each year, which lists all 
reportable (non-exempt equipment and/or Federally owned property) in its 
custody as of September 30. Negative responses for annual Inventory 
Reports (when there is no reportable equipment) are not required. A 
Final Inventory Report of Federally Owned Property, including equipment 
where title was taken by the Government, will be submitted by the 
Recipient no later than 60 days after the expiration date of the grant. 
Negative responses for Final Inventory Reports are required.
    (1) All reports will include the information listed in paragraph 
(f)(1) of Sec. 1260.134, Equipment. No specific report form or format 
is required, provided that all necessary information set forth at Sec. 
1260.134(f)(1) is provided.
    (2) The original of each report shall be submitted to the Deputy 
Chief Financial Officer (Finance). Copies shall be furnished to the 
Center Industrial Property Officer and to ONR.

[[Page 293]]

                           [End of provision]



Sec. 1260.28  Patent rights.

                              Patent Rights

                              October 2000

    As stated at Sec. 1260.136, this award is subject to the provisions 
of 37 CFR 401.3(a) which requires use of the standard clause set out at 
37 CFR 401.14 ``Patent Rights (Small Business Firms and Nonprofit 
Organizations)'' and the following:
    (a) Where the term ``contract'' or ``Contractor'' is used in the 
``Patent Rights'' clause, the term shall be replaced by the term 
``grant'' or ``Recipient,'' respectively.
    (b) In each instance where the term ``Federal Agency,'' ``agency,'' 
or ``funding Federal agency'' is used in the ``Patent Rights'' clause, 
the term shall be replaced by the term ``NASA.''
    (c) The following item is added to the end of paragraph (f) of the 
``Patent Rights'' clause: ``(5) The Recipient shall include a list of 
any Subject Inventions required to be disclosed during the preceding 
year in the performance report, technical report, or renewal proposal. A 
complete list (or a negative statement) for the entire award period 
shall be included in the summary of research.''
    (d) The term ``subcontract'' in paragraph (g) of the ``Patent 
Rights'' clause shall include purchase orders.
    (e) The NASA implementing regulation for paragraph (g)(2) of the 
``Patent Rights'' clause is at 48 CFR 1827.304-4(a)(i)(B).
    (f) The following requirement constitutes paragraph (l) of the 
``Patent Rights'' clause:
    ``(l) Communications. A copy of all submissions or requests required 
by this clause, plus a copy of any reports, manuscripts, publications or 
similar material bearing on patent matters, shall be sent to the Center 
Patent Counsel and the NASA Grant Officer in addition to any other 
submission requirements in the grant provisions. If any reports contain 
information describing a ``subject invention'' for which the recipient 
has elected or may elect to retain title, NASA will use reasonable 
efforts to delay public release by NASA or publication by NASA in a NASA 
technical series until an application filing date has been established, 
provided that the Recipient identify the information and the ``subject 
invention'' to which it relates at the time of submittal. If required by 
the NASA Grant Officer, the Recipient shall provide the filing date, 
serial number and title, a copy of the patent application, and a patent 
number and issue date for any ``subject invention'' in any country in 
which the Recipient has applied for patents.''
    (g) NASA Inventions. NASA will use reasonable efforts to report 
inventions made by NASA employees as a consequence of, or which bear a 
direct relation to, the performance of specified NASA activities under 
this agreement and, upon timely request, will use reasonable efforts to 
grant the Recipient an exclusive, or partially exclusive, revocable, 
royalty-bearing license, subject to the retention of a royalty-free 
right of the Government to practice or have practiced the invention by 
or on behalf of the Government.
    (h) In the event NASA contractors are tasked to perform work in 
support of specified activities under a cooperative agreement and 
inventions are made by Contractor employees, the Recipient will normally 
retain title to its employee inventions in accordance with 35 U.S.C. 
202, 14 CFR Part 1245, and Executive Order 12591. In the event the 
Recipient decides not to pursue rights to title in any such invention 
and NASA obtains title to such inventions, NASA will use reasonable 
efforts to report such inventions and, upon timely request, will use 
reasonable efforts to grant the Recipient an exclusive, or partially 
exclusive, revocable, royalty-bearing license, subject to the retention 
of a royalty-free right of the Government to practice or have practiced 
the invention by or on behalf of the Government.

                           [End of provision]



Sec. 1260.29  [Reserved]



Sec. 1260.30  Rights in data.

(The grant officer may revise the language under this provision to 
modify each party's rights based on the particular circumstances of the 
program and/or the recipient's need to protect specific proprietary 
information. Any modification to the standard language set forth under 
the provision requires the concurrence of the Center's Patent Counsel 
and that the provision be printed in full text.)

                             Rights in Data

                              October 2000

    (a) Fully Funded Efforts.
    (1) ``Data'' means recorded information, regardless of form, the 
media on which it may be recorded, or the method of recording. The term 
includes, but is not limited to, data of a scientific or technical 
nature, computer software and documentation thereof, and data comprising 
commercial and financial information.
    (2) The Recipient grants to the Federal Government, a royalty-free, 
nonexclusive and irrevocable license to use, reproduce, distribute 
(including distribution by transmission) to the public, perform 
publicly, prepare derivative works, and display publicly, data in whole 
or in part and in any manner for Federal purposes and to have or permit 
others to do so for Federal purposes only.
    (3) In order that the Federal Government may exercise its license 
rights in data, the

[[Page 294]]

Federal Government, upon request to the Recipient, shall have the right 
to review and/or obtain delivery of data resulting from the performance 
of work under this grant, and authorize others to receive data to use 
for Federal purposes.
    (b) Cost Sharing and/or Matching Efforts. When the Recipient cost 
shares with the Government on the effort, the following paragraph 
applies:
    ``(1) In the event data first produced by Recipient in carrying out 
Recipient's responsibilities under an agreement is furnished to NASA, 
and Recipient considers such data to embody trade secrets or to comprise 
commercial or financial information which is privileged or confidential, 
and such data is so identified with a suitable notice or legend, the 
data will be maintained in confidence and disclosed and used by the 
Government and its Contractors (under suitable protective conditions) 
only for experimental, evaluation, research and development purposes, by 
or on behalf of the Government for an agreed to period of time, and 
thereafter for Federal purposes as defined in Sec. 1260.30(a)(2).''
    (c) For Cooperative Agreements the following paragraph applies:
    ``(1) As to data first produced by NASA in carrying out NASA's 
responsibilities under a cooperative agreement and which data would 
embody trade secrets or would comprise commercial or financial 
information that is privileged or confidential if it has been obtained 
from the Recipient, such data will be marked with an appropriate legend 
and maintained in confidence for 5 years (unless a shorter period has 
been agreed to between the Government and Recipient) after development 
of the information, with the express understanding that during the 
aforesaid period such data may be disclosed and used (under suitable 
protective conditions) by or on behalf of the Government for Government 
purposes only, and thereafter for any purpose whatsoever without 
restriction on disclosure and use. Recipient agrees not to disclose such 
data to any third party without NASA's written approval until the 
aforementioned restricted period expires.''

                           [End of provision]



Sec. 1260.31  National security.

                            National Security

                              October 2000

    Normally, NASA grants do not involve classified information. 
However, if it is known in advance that a grant involves classified 
information or if the work on the grant is likely to develop classified 
information, individuals performing on the grant who will have access to 
the information must obtain the appropriate security clearance in 
advance of performing on the grant, in accordance with NASA Policy 
Guidance (NPG) 1620.1, Security Procedures and Guidelines. When access 
to classified information is not originally anticipated in the 
performance of a grant, but such information is subsequently sought or 
potentially developed by the grant Recipient, the NASA Grant Officer who 
issued the grant shall be notified immediately, and prior to work under 
the grant proceeding, to implement the appropriate clearance 
requirements.

                           [End of provision]



Sec. 1260.32  Nondiscrimination.

                            Nondiscrimination

                              October 2000

    (a) To the extent provided by law and any applicable agency 
regulations, this award and any program assisted thereby are subject to 
the provisions of Title VI of the Civil Rights Act of 1964 (Pub. L. 88-
352), Title IX of the Education amendments of 1972 (Pub. L. 92-318, 20 
U.S.C. 1681 et seq.), section 504 of the Rehabilitation Act of 1973 (29 
U.S.C. 794), the Age Discrimination Act of 1975 (Pub. L. 94-135), the 
implementing regulations issued pursuant thereto by NASA, and the 
assurance of compliance which the recipient has filed with NASA.
    (b) The Recipient shall obtain from each organization that applies 
or serves as a subrecipient, Contractor or subcontractor under this 
award (for other than the provision of commercially available supplies, 
materials, equipment, or general support services) an assurance of 
compliance as required by NASA regulations.
    (c) Work on NASA grants is subject to the provisions of Title VI of 
the Civil Rights Act of 1964 (Pub. L. 88-352; 42 U.S.C. 2000d-l), Title 
IX of the Education Amendments of 1972 (20 U.S.C. 1680 et seq.), Section 
504 of the Rehabilitation Act of 1973, as amended (29 U.S.C. 794), the 
Age Discrimination Act of 1975 (42 U.S.C. 6101 et seq.), and the NASA 
implementing regulations (14 CFR parts 1250, 1251, and 1252).

                           [End of provision]



Sec. 1260.33  Subcontracts.

                              Subcontracts

                              October 2000

    (a) Recipients shall notify NASA when a subcontract award will be 
made that falls within the thresholds established at Sec. 1260.144(e). 
When pre-award review of a subcontract is requested by the NASA Grant 
Officer in accordance with Sec. 1260.144(e), the following specific 
documents will be made available to the NASA Grant Officer. (The

[[Page 295]]

Grant Officer can request additional documents):
    (1) A copy of the proposed subcontract.
    (2) The basis for subcontractor selection.
    (3) Justification for lack of competition when competitive bids or 
offers are not obtained.
    (4) The subcontract budget and basis for subcontract cost or price.
    (b) The Recipient (with the exception of foreign organizations) 
shall utilize small business concerns, small disadvantaged business 
concerns, Historically Black Colleges and Universities, minority 
educational institutions, and women-owned small business concerns as 
subcontractors to the maximum extent practicable.

                           [End of provision]



Sec. 1260.34  Clean air and water.

                           Clean Air and Water

                              October 2000

    (Applicable only if the award exceeds $100,000, or a facility to be 
used has been the subject of a conviction under the Clean Air Act (42 
U.S.C. 1857c-8(c)(1) or the Federal Water Pollution Control Act (33 
U.S.C. 1319(c)), and is listed by EPA, or if the award is not otherwise 
exempt). The Recipient agrees to the following:
    (a) Comply with applicable standards, orders or regulations issued 
pursuant to the Clean Air Act, as amended (42 U.S.C. 7401 et seq.) and 
of the Federal Water Pollution Control Act (33 U.S.C. 1251 et seq.).
    (b) Ensure that no portion of the work under this award will be 
performed in a facility listed on the Environmental Protection Agency 
(EPA) List of Violating Facilities on the date that this award was 
effective unless and until the EPA eliminates the name of such facility 
or facilities from such listings.
    (c) Use its best efforts to comply with clean air standards and 
clean water standards at the facility in which the award is being 
performed.
    (d) Insert the substance of the provisions of this clause into any 
nonexempt subaward or contract under the award.
    (e) Report violations to NASA or to EPA.

                           [End of provision]



Sec. 1260.35  Investigative requirements.

                       Investigative Requirements

                              October 2000

    (a) As requested by NASA, the Recipient of each grant, and any other 
individuals to perform on the grant, agree to provide sufficient 
personal/biographical information necessary to conduct an investigation 
of the individual's background. The purpose of the investigation is to 
allow access to a NASA Center, or to NASA information, for performance 
of this grant. The Recipient acknowledges that NASA reserves the right 
to perform security checks, and to deny or restrict access to a NASA 
Center, facility, computer system, or technical information as 
appropriate.
    (b) All visit requests must be submitted in a timely manner in 
accordance with instructions provided by the Center(s) to be visited.

                           [End of provision]



Sec. 1260.36  Travel and transportation.

                        Travel and Transportation

                              October 2000

    (a) The Fly American Act, 49 U.S.C. 1517, requires the Recipient to 
use U.S. flag air carriers for international air transportation of 
personnel and property to the extent that service by those carriers is 
available.
    (b) Department of Transportation regulations, 49 CFR Part 173, 
govern Recipient shipment of hazardous materials and other items.

                           [End of provision]



Sec. 1260.37  Safety.

                                 Safety

                              October 2000

    (a) The Recipient shall act responsibly in matters of safety and 
shall take all reasonable safety measures in performing under this grant 
or cooperative agreement. The Recipient shall comply with all applicable 
federal, state, and local laws relating to safety. The Recipient shall 
maintain a record of, and will notify the NASA Grant Officer immediately 
(within one workday) of any accident involving death, disabling injury 
or substantial loss of property in performing this grant or cooperative 
agreement. The Recipient will immediately (within one workday) advise 
NASA of hazards that come to its attention as a result of the work 
performed.
    (b) Where the work under this grant or cooperative agreement 
involves flight hardware, the hazardous aspects, if any, of such 
hardware will be identified, in writing, by the Recipient. Compliance 
with this provision by subcontractors shall be the responsibility of the 
Recipient.

                           [End of provision]



Sec. 1260.38  Drug-free workplace.

                           Drug-Free Workplace

                              October 2000

    (a) Definitions. As used in this provision--

[[Page 296]]

    Controlled substance means a controlled substance in schedules I 
through V of section 202 of the Controlled Substances Act (21 U.S.C. 
812) and as further defined in regulation at 21 CFR 1308.11 through 
1308.15.
    Conviction means a finding of guilt (including a plea of nolo 
contendere) or imposition of sentence, or both, by any judicial body 
charged with the responsibility to determine violations of the Federal 
or State criminal drug statutes.
    Criminal drug statute means a Federal or non-Federal criminal 
statute involving the manufacture, distribution, dispensing, possession, 
or use of any controlled substance.
    Drug-free workplace means the site(s) for the performance of work 
done by the Recipient in connection with a specific grant or cooperative 
agreement at which employees of the Recipient are prohibited from 
engaging in the unlawful manufacture, distribution, dispensing, 
possession, or use of a controlled substance.
    Employee means an employee of a Recipient directly engaged in the 
performance of work under a Government grant or cooperative agreement. 
``Directly engaged'' is defined to include all direct cost employees and 
any other Recipient employee who has other than a minimal impact or 
involvement in performance of the grant or cooperative agreement.
    Individual means a Proposer/Recipient that has no more than one 
employee including the Proposer/Recipient.
    (b) The Recipient, if other than an individual, shall--within 30 
days after award (unless a longer period is agreed to in writing), or as 
soon as possible for grants and cooperative agreements of less than 30 
days performance duration--
    (1) Publish a statement notifying its employees that the unlawful 
manufacture, distribution, dispensing, possession, or use of a 
controlled substance is prohibited in the Recipient's workplace and 
specifying the actions that will be taken against employees for 
violations of such prohibition;
    (2) Establish an ongoing drug-free awareness program to inform such 
employees about--
    (i) The dangers of drug abuse in the workplace;
    (ii) The Recipient's policy of maintaining a drug-free workplace;
    (iii) Any available drug counseling, rehabilitation, and employee 
assistance programs; and
    (iv) The penalties that may be imposed upon employees for drug abuse 
violations occurring in the workplace;
    (3) Provide all employees engaged in performance of the grant or 
cooperative agreement with a copy of the statement required by paragraph 
(b)(1) of this provision;
    (4) Notify such employees in writing in the statement required by 
paragraph (b)(1) of this provision that, as a condition of continued 
employment on the grant or cooperative agreement, the employee will--
    (i) Abide by the terms of the statement; and
    (ii) Notify the employer in writing of the employee's conviction 
under a criminal drug statute for a violation occurring in the workplace 
no later than 5 days after such conviction;
    (5) Notify the Grant Officer in writing within 10 days after 
receiving notice under paragraph (b)(4)(ii) of this provision, from an 
employee or otherwise receiving actual notice of such conviction. The 
notice shall include the position title of the employee;
    (6) Within 30 days after receiving notice under paragraph (b)(4)(ii) 
of this provision of a conviction, take one of the following actions 
with respect to any employee who is convicted of a drug abuse violation 
occurring in the workplace:
    (i) Taking appropriate personnel action against such employee, up to 
and including termination; or
    (ii) Require such employee to satisfactorily participate in a drug 
abuse assistance or rehabilitation program approved for such purposes by 
a Federal, State, or local health, law enforcement, or other appropriate 
agency; and
    (7) Make a good faith effort to maintain a drug-free workplace 
through implementation of paragraphs (b)(1) through (b)(6) of this 
provision.
    (c) The Recipient, if an individual, agrees by acceptance of the 
grant or cooperative agreement, not to engage in the unlawful 
manufacture, distribution, dispensing, possession, or use of a 
controlled substance during performance.
    (d) In addition to other remedies available to the Government, the 
Recipient's failure to comply with the requirements of paragraph (b) or 
(c) of this provision may render the Recipient subject to suspension of 
payments, termination of the grant or cooperative agreement, and 
suspension or debarment.

                           [End of provision]



Sec. 1260.39  Buy American encouragement.

                       Buy American Encouragement

                                May 2003

    As stated in Section 319 of Public Law 106-391, the NASA 
Authorization Act of 2000, Recipients are encouraged to purchase only 
American-made equipment and products.

                           [End of provision]

[67 FR 45790, July 10, 2002, as amended at 68 FR 28709, May 27, 2003]

[[Page 297]]

                           Special Conditions



Sec. 1260.50  Special conditions.

    (a) In addition to the provisions set forth in 1260.21 through 
1260.38, NASA grants and cooperative agreements are subject to special 
conditions, which either are not applicable to all awards or are 
temporary in nature. Examples are found in Sec. Sec. 1260.51 through 
1260.69, but NASA may impose other conditions as discussed in Sec. 
1260.114 or as the requirements dictate. Deviations are not required for 
changes made to special conditions.
    (b) Special conditions will be printed in full text.
    (c) In facilities grants, special conditions will be selected on a 
case-by-case basis. As appropriate, the requirements of the following 
sections will apply: Sec. 1260.123(c), Cost Sharing or Matching; Sec. 
1260.125(h), Revision of Budget and Program Plans; and Sec. 1260.132, 
Real Property.
    (d) Research grants with foreign organizations will include special 
conditions at Sec. Sec. 1260.59 through 1260.61, modified as necessary, 
when not covered under a Memorandum of Agreement (MOA). In addition, 
other special conditions (e.g., Sec. Sec. 1260.62 through 1260.65) will 
be written with the aid of legal counsel, and added when necessary.
    (e) Grants and cooperative agreements awarded by NASA to commercial 
organizations where cost sharing is not required shall incorporate the 
special conditions prescribed at Sec. 1260.4.



Sec. 1260.51  Cooperative agreement special condition.

                 Cooperative Agreement Special Condition

                              October 2000

    (a) This award is a cooperative agreement as it is anticipated there 
will be substantial NASA involvement during performance of the effort. 
NASA and the Recipient mutually agree to the following statement of 
anticipated cooperative interactions which may occur during the 
performance of this effort:
    (Reference the approved proposal that contains a detailed 
description of the work and insert a concise statement of the exact 
nature of the cooperative interactions that deals with existing facts 
and not contingencies.)
    (b) The terms ``grant'' and ``Recipient'' mean ``cooperative 
agreement'' and ``Recipient of cooperative agreement,'' respectively, 
wherever the terms appear in provisions and special conditions included 
in this agreement.
    (c) NASA's ability to participate and perform its collaborative 
effort under this cooperative agreement is subject to the availability 
of appropriated funds and nothing in this cooperative agreement commits 
the United States Congress to appropriate funds therefor.



Sec. 1260.52  Multiple year grant or cooperative agreement.

              Multiple Year Grant or Cooperative Agreement

                              October 2000

    This is a multiple year grant or cooperative agreement. Contingent 
on the availability of funds, scientific progress of the project, and 
continued relevance to NASA programs, NASA anticipates continuing 
support at approximately the following levels:
    Second year $------, Anticipated funding date------.
    Third year $------, Anticipated funding date------.
    (Periods may be added or omitted, as applicable)



Sec. 1260.53  Incremental funding.

                           Incremental Funding

                              October 2000

    (a) Only $------ of the amount indicated on the face of this award 
is available for payment and allotted to this award. NASA contemplates 
making additional allotments of funds during performance of this effort. 
It is anticipated that these funds will be obligated as appropriated 
funds become available without any action required by the Recipient. The 
Recipient will be given written notification by the NASA Grant Officer.
    (b) The recipient agrees to perform work up to the point at which 
the total amount paid or payable by the Government approximates but does 
not exceed the total amount actually allotted to this grant or 
cooperative agreement. NASA is not obligated to reimburse the Recipient 
for the expenditure of amounts in excess of the total funds allotted by 
NASA to this grant or cooperative agreement. The Recipient is not 
authorized to continue performance beyond the amount allotted to this 
award.



Sec. 1260.54  Cost sharing.

                              Cost Sharing

                              October 2000

    (a) NASA and the Recipient will share in providing the resources 
necessary to perform the agreement. NASA funding and non-cash

[[Page 298]]

contributions (personnel, equipment, facilities, etc.) and the dollar 
value of the Recipient's cash and/or non-cash contribution will be on 
a------ percent NASA; ------ percent Recipient basis.
    (b) The funding and non-cash contributions by both parties is 
represented by the following dollar amounts:
Government Share ------
Recipient Share ------
Total Amount ------
    (c) Criteria and procedures for the allowability and allocability of 
cash and non-cash contributions shall be governed by Sec. 1260.123, 
Cost Sharing or Matching. The applicable Federal cost principles are 
cited in Sec. 1260.127.
    (d) The Recipient's share shall not be charged to the Government 
under this agreement or under any other contract, grant, or cooperative 
agreement.



Sec. 1260.55  Reports substitution.

                          Reports Substitution

                              October 2000

    Technical Reports may be substituted for the required Performance 
Reports. The title page of such reports shall clearly indicate that the 
substitution has been made and will show the period covered by the 
originally required Performance Report.



Sec. 1260.56  Withholding.

                               Withholding

                               August 2003

    If a Recipient fails to comply with the project objectives, the 
terms and conditions of this award, or reporting requirements under this 
or previous NASA awards, NASA may withhold advance payments under this 
award including its augmentations, and may also withhold advance 
payments under future awards to the Recipient, pending correction of the 
deficiency by the Recipient. Upon determination that the deficiency has 
been corrected, the cognizant NASA Financial Management Office shall 
resume advance payments and release of previously withheld amounts after 
coordination with the Grant Officer.

[68 FR 50469, Aug. 21, 2003]



Sec. 1260.57  New technology.

                             New Technology

                              October 2000

    (a) Definitions.
    Administrator, as used in this special condition, means the 
Administrator of the National Aeronautics and Space Administration 
(NASA) or duly authorized representative.
    Grant, as used in this special condition, means any actual or 
proposed grant, cooperative agreement, understanding, or other 
arrangement, and includes any assignment, substitution of parties, or 
subcontract executed or entered into thereunder.
    Made, as used in this special condition, means conception or first 
actual reduction to practice; provided, that in the case of a variety of 
plant, the date of determination (as defined in section 41(d) of the 
Plant Variety Protection Act, 7 U.S.C. 2401(d)) must also occur during 
the period of grant performance.
    Nonprofit organization, as used in this special condition, means a 
domestic university or other institution of higher education or an 
organization of the type described in section 501(c)(3) of the Internal 
Revenue Code of 1954 (26 U.S.C. 501(c)) and exempt from taxation under 
section 501(a) of the Internal Revenue Code (26 U.S.C. 501(a)), or any 
domestic nonprofit scientific or educational organization qualified 
under a State nonprofit organization statute.
    Practical application, as used in this special condition, means to 
manufacture, in the case of a composition or product; to practice, in 
the case of a process or method; or to operate, in case of a machine or 
system; and, in each case, under such conditions as to establish that 
the invention is being utilized and that its benefits are, to the extent 
permitted by law or Government regulations, available to the public on 
reasonable terms.
    Reportable item, as used in this special condition, means any 
invention, discovery, improvement, or innovation of the grantee, whether 
or not patentable or otherwise protectable under Title 35 of the United 
States Code, made in the performance of any work under any NASA grant or 
in the performance of any work that is reimbursable under any provision 
in any NASA grant providing for reimbursement of costs incurred before 
the effective date of the grant. Reportable items include, but are not 
limited to, new processes, machines, manufactures, and compositions of 
matter, and improvements to, or new applications of, existing processes, 
machines, manufactures, and compositions of matter. Reportable items 
also include new computer programs, and improvements to, or new 
applications of, existing computer programs, whether or not 
copyrightable or otherwise protectable under Title 17 of the United 
States Code.
    Small business firm, as used in this special condition, means a 
domestic small business concern as defined at 15 U.S.C. 632 and 
implementing regulations (see 13 CFR section 121.401 et seq.) of the 
Administrator of the Small Business Administration.
    Subject invention, as used in this special condition, means any 
reportable item which is or may be patentable or otherwise protectible 
under Title 35 of the United

[[Page 299]]

States Code, or any novel variety of plant that is or may be protectable 
under the Plant Variety Protection Act (7 U.S.C. 2321 et seq.).
    (b) Allocation of principal rights.
    (1) Presumption of title.
    (i) Any reportable item that the Administrator considers to be a 
subject invention shall be presumed to have been made in the manner 
specified in paragraph (1) or (2) of section 305(a) of the National 
Aeronautics and Space Act of 1958 (42 U.S.C. 2457(a)) (hereinafter 
called ``the Act''), and that presumption shall be conclusive unless at 
the time of reporting the reportable item the Recipient submits to the 
Grant Officer a written statement, containing supporting details, 
demonstrating that the reportable item was not made in the manner 
specified in paragraph (1) or (2) of section 305(a) of the Act.
    (ii) Regardless of whether title to a given subject invention would 
otherwise be subject to an advance waiver or is the subject of a 
petition for waiver, the Recipient may nevertheless file the statement 
described in paragraph (b)(1)(i) of this special condition. The 
Administrator will review the information furnished by the Recipient in 
any such statement and any other available information relating to the 
circumstances surrounding the making of the subject invention and will 
notify the Recipient whether the Administrator has determined that the 
subject invention was made in the manner specified in paragraph (1) or 
(2) of section 305(a) of the Act.
    (2) Property rights in subject inventions. Each subject invention 
for which the presumption of paragraph (b)(1)(i) of this special 
condition is conclusive or for which there has been a determination that 
it was made in the manner specified in paragraph (1) or (2) of section 
305(a) of the Act shall be the exclusive property of the United States 
as represented by NASA unless the Administrator waives all or any part 
of the rights of the United States, as provided in paragraph (b)(3) of 
this special condition.
    (3) Waiver of rights.
    (i) Section 305(f) of the Act provides for the promulgation of 
regulations by which the Administrator may waive the rights of the 
United States with respect to any invention or class of inventions made 
or that may be made under conditions specified in paragraph (1) or (2) 
of section 305(a) of the Act. The promulgated NASA Patent Waiver 
Regulations, 14 CFR part 1245, subpart 1, have adopted the Presidential 
Memorandum on Government Patent Policy of February 18, 1983, as a guide 
in acting on petitions (requests) for such waiver of rights.
    (ii) As provided in 14 CFR Part 1245, subpart 1, Recipients may 
petition, either prior to execution of the grant or within 30 days after 
execution of the grant, for advance waiver of rights to any or all of 
the inventions that may be made under a grant. If such a petition is not 
submitted, or if after submission it is denied, the Recipient (or an 
employee inventor of the Recipient) may petition for waiver of rights to 
an identified subject invention within eight months of first disclosure 
of the invention in accordance with paragraph (e)(2) of this special 
condition, or within such longer period as may be authorized in 
accordance with 14 CFR 1245.105.
    (c) Minimum rights reserved by the Government.
    (1) With respect to each subject invention for which a waiver of 
rights is applicable in accordance with 14 CFR part 1245, subpart 1, the 
Government reserves--
    (i) An irrevocable, nonexclusive, nontransferable, royalty-free 
license for the practice of such invention throughout the world by or on 
behalf of the United States or any foreign government in accordance with 
any treaty or agreement with the United States; and
    (ii) Such other rights as stated in 14 CFR 1245.107.
    (2) Nothing contained in this paragraph (c) shall be considered to 
grant to the Government any rights with respect to any invention other 
than a subject invention.
    (d) Minimum rights to the Recipient.
    (1) The Recipient is hereby granted a revocable, nonexclusive, 
royalty-free license in each patent application filed in any country on 
a subject invention and any resulting patent in which the Government 
acquires title, unless the Recipient fails to disclose the subject 
invention within the times specified in paragraph (e)(2) of this special 
condition. The Recipient's license extends to its domestic subsidiaries 
and affiliates, if any, within the corporate structure of which the 
Recipient is a party and includes the right to grant sublicenses of the 
same scope to the extent the Recipient was legally obligated to do so at 
the time the grant was awarded. The license is transferable only with 
the approval of the Administrator except when transferred to the 
successor of that part of the Recipient's business to which the 
invention pertains.
    (2) The Recipient's domestic license may be revoked or modified by 
the Administrator to the extent necessary to achieve expeditious 
practical application of the subject invention pursuant to an 
application for an exclusive license submitted in accordance with 37 CFR 
part 404, Licensing of Government Owned Inventions. This license will 
not be revoked in that field of use or the geographical areas in which 
the Recipient has achieved practical application and continues to make 
the benefits of the invention reasonably accessible to the public. The 
license in any foreign country may be revoked or modified at the 
discretion of the Administrator to

[[Page 300]]

the extent the Recipient, its licensees, or its domestic subsidiaries or 
affiliates have failed to achieve practical application in that foreign 
country.
    (3) Before revocation or modification of the license, the Recipient 
will be provided a written notice of the Administrator's intention to 
revoke or modify the license, and the Recipient will be allowed 30 days 
(or such other time as may be authorized by the Administrator for good 
cause shown by the Recipient) after the notice to show cause why the 
license should not be revoked or modified. The Recipient has the right 
to appeal to the Administrator any decision concerning the revocation or 
modification of its license.
    (e) Invention identification, disclosures, and reports.
    (1) The Recipient shall establish and maintain active and effective 
procedures to assure that reportable items are promptly identified and 
disclosed to Recipient personnel responsible for the administration of 
this New Technology special condition within six months of conception 
and/or first actual reduction to practice, whichever occurs first in the 
performance of work under this grant. These procedures shall include the 
maintenance of laboratory notebooks or equivalent records and other 
records as are reasonably necessary to document the conception and/or 
the first actual reduction to practice of the reportable items, and 
records that show that the procedures for identifying and disclosing 
reportable items are followed. Upon request, the Recipient shall furnish 
the Grant Officer a description of such procedures for evaluation and 
for determination as to their effectiveness.
    (2) The Recipient will disclose each reportable item to the Grant 
Officer within two months after the inventor discloses it in writing to 
Recipient personnel responsible for the administration of this New 
Technology special condition or, if earlier, within six months after the 
Recipient becomes aware that a reportable item has been made, but in any 
event for subject inventions before any on sale, public use, or 
publication of such invention known to the Recipient. The disclosure to 
the agency shall be in the form of a written report and shall identify 
the grant under which the reportable item was made and the inventor(s) 
or innovator(s). It shall be sufficiently complete in technical detail 
to convey a clear understanding, to the extent known at the time of the 
disclosure, of the nature, purpose, operation, and physical, chemical, 
biological, or electrical characteristics of the reportable item. The 
disclosure shall also identify any publication, on sale, or public use 
of any subject invention and whether a manuscript describing such 
invention has been submitted for publication and, if so, whether it has 
been accepted for publication at the time of disclosure. In addition, 
after disclosure to the agency, the Recipient will promptly notify the 
agency of the acceptance of any manuscript describing a subject 
invention for publication or of any on sale or public use planned by the 
Recipient for such invention.
    (3) The Recipient shall furnish the Grant Officer the following:
    (i) Interim reports every 12 months (or such longer period as may be 
specified by the Grant Officer) from the date of the grant, listing 
reportable items during that period, and certifying that all reportable 
items have been disclosed (or that there are no such inventions) and 
that the procedures required by paragraph (e)(1) of this special 
condition have been followed.
    (ii) A final report, within 3 months after completion of the grant 
work, listing all reportable items or certifying that there were no such 
reportable items, and listing all subcontracts at any tier containing a 
patent rights clause or certifying that there were no such subcontracts.
    (4) The Recipient agrees, upon written request of the Grant Officer, 
to furnish additional technical and other information available to the 
Recipient as is necessary for the preparation of a patent application on 
a subject invention and for the prosecution of the patent application, 
and to execute all papers necessary to file patent applications on 
subject inventions and to establish the Government's rights in the 
subject inventions.
    (5) The Recipient agrees, subject to FAR 27.302(j), that the 
Government may duplicate and disclose subject invention disclosures and 
all other reports and papers furnished or required to be furnished 
pursuant to this special condition.
    (f) Examination of records relating to inventions.
    (1) The Grant Officer or any authorized representative shall, until 
3 years after final payment under this grant, have the right to examine 
any books (including laboratory notebooks), records, and documents of 
the Recipient relating to the conception or first actual reduction to 
practice of inventions in the same field of technology as the work under 
this grant to determine whether--
    (i) Any such inventions are subject inventions;
    (ii) The Recipient has established and maintained the procedures 
required by paragraph (e)(1) of this special condition; and
    (iii) The Recipient and its inventors have complied with the 
procedures.
    (2) If the Grant Officer learns of an unreported Recipient grantee 
invention that the Grant Officer believes may be a subject invention, 
the Recipient may be required to disclose the invention to the agency 
for a determination of ownership rights.
    (3) Any examination of records under this paragraph will be subject 
to appropriate conditions to protect the confidentiality of the 
information involved.

[[Page 301]]

    (g) Withholding of payment (this paragraph does not apply to 
subcontracts).
    (1) Any time before final payment under this grant, the Grant 
Officer may, in the Government's interest, withhold payment until a 
reserve not exceeding $50,000 or 5 percent of the amount of this grant, 
whichever is less, shall have been set aside if, in the Grant Officer's 
opinion, the Recipient fails to--
    (i) Establish, maintain, and follow effective procedures for 
identifying and disclosing reportable items pursuant to paragraph (e)(1) 
of this special condition;
    (ii) Disclose any reportable items pursuant to paragraph (e)(2) of 
this special condition;
    (iii) Deliver acceptable interim reports pursuant to paragraph 
(e)(3)(i) of this special condition; or
    (iv) Provide the information regarding subcontracts pursuant to 
paragraph (h)(4) of this special condition.
    (2) Such reserve or balance shall be withheld until the Grant 
Officer has determined that the Recipient has rectified whatever 
deficiencies exist and has delivered all reports, disclosures, and other 
information required by the grant.
    (3) Final payment under the grant shall not be made before the 
Recipient delivers to the Grant Officer all disclosures of reportable 
items required by paragraph (e)(2) of this special condition, and an 
acceptable final report pursuant to paragraph (e)(3)(ii) of this special 
condition.
    (4) The Grant Officer may decrease or increase the sums withheld up 
to the maximum authorized in paragraph (g)(1) of this special condition. 
No amount shall be withheld under this paragraph while the amount 
specified by this paragraph is being withheld under other provisions of 
the grant. The withholding of any amount or the subsequent payment 
thereof shall not be construed as a waiver of any Government rights.
    (h) Subcontracts.
    (1) Unless otherwise authorized or directed by the Grant Officer, 
the Recipient shall--
    (i) Include the clause at NASA FAR Supplement (NFS) 1852.227-70, New 
Technology, (suitably modified to identify the parties) in any 
subcontract hereunder (regardless of tier) with other than a small 
business firm or nonprofit organization for the performance of 
experimental, developmental, or research work; and
    (ii) Include the clause at FAR 52.227-11 (suitably modified to 
identify the parties) in any subcontract hereunder (regardless of tier) 
with a small business firm or nonprofit organization for the performance 
of experimental, developmental, or research work.
    (2) In the event of a refusal by a prospective subcontractor to 
accept such a clause the Recipient--
    (i) Shall promptly submit a written notice to the Grant Officer 
setting forth the subcontractor's reasons for such refusal and other 
pertinent information that may expedite disposition of the matter; and
    (ii) Shall not proceed with such subcontract without the written 
authorization of the Grant Officer.
    (3) In the case of subcontracts at any tier, the agency, 
subcontractor, and Recipient agree that the mutual obligations of the 
parties created by this special condition constitute a contract between 
the subcontractor and NASA with respect to those matters covered by this 
grant.
    (4) The Recipient shall promptly notify the Grant Officer in writing 
upon the award of any subcontract at any tier containing a patent rights 
clause by identifying the subcontractor, the applicable patent rights 
clause, the work to be performed under the subcontract, and the dates of 
award and estimated completion. Upon request of the Grant Officer, the 
Recipient shall furnish a copy of such subcontract, and, no more 
frequently than annually, a listing of the subcontracts that have been 
awarded.
    (5) The subcontractor will retain all rights provided for the 
Recipient in paragraph (h)(1)(i) or (ii) of this special condition, 
whichever is included in the subcontract, and the Recipient will not, as 
part of the consideration for awarding the subcontract, obtain rights in 
the subcontractor's subject inventions.
    (i) Preference for United States industry. Unless provided 
otherwise, no Recipient that receives title to any subject invention and 
no assignee of any such Recipient shall grant to any person the 
exclusive right to use or sell any subject invention in the United 
States unless such person agrees that any products embodying the subject 
invention will be manufactured substantially in the United States. 
However, in individual cases, the requirement may be waived by the 
Administrator upon a showing by the Recipient or assignee that 
reasonable but unsuccessful efforts have been made to grant licenses on 
similar terms to potential licensees that would be likely to manufacture 
substantially in the United States or that under the circumstances 
domestic manufacture is not commercially feasible.



Sec. 1260.58  Designation of new technology representative and patent representative.

 Designation of New Technology Representative and Patent Representative

                              October 2000

    (a) For purposes of administration of the special condition of this 
grant entitled ``New Technology,'' the following named representatives 
are hereby designated by the Grant Officer to administer such special 
condition:

Title, Office Code, Address (including zip code)

[[Page 302]]

New Technology
Representative
Patent Representative

    (b) Reports of reportable items, and disclosure of subject 
inventions, interim reports, final reports, utilization reports, and 
other reports required by the special condition, as well as any 
correspondence with respect to such matters, should be directed to the 
New Technology Representative unless transmitted in response to 
correspondence or request from the Patent Representative. Inquires or 
requests regarding disposition of rights, election of rights, or related 
matters should be directed to the Patent Representative. This special 
condition shall be included in any subcontract hereunder requiring a 
``New Technology'' provision or ``Patent Rights--Retention by the 
Contractor (Short Form)'' clause, unless otherwise authorized or 
directed by the Grant Officer. The respective responsibilities and 
authorities of the above-named representatives are set forth in 
1827.305-370 of the NASA FAR Supplement.



Sec. 1260.59  Choice of law.

                              Choice of Law

                              October 2000

    The rights and obligations of the parties to the grant (or 
cooperative agreement) shall be ascertainable by recourse to the laws of 
the United States of America. However, it is understood that the laws of 
the Recipient's country will generally apply to recipient activities 
within that country.



Sec. 1260.59A  Invention reporting and rights.

                     Invention Reporting and Rights

                              October 2000

    (a) As used in this provision:
    (1) The term ``invention'' means any invention or discovery which is 
or may be patentable or otherwise protectable under Title 35 of the 
United States Code, or any novel variety of plant which is or may be 
protected under the Plant Variety Protection Act (7 U.S.C. 2321 et 
seq.).
    (2) The term ``made'' when used in relation to any invention means 
the conception or first actual reduction to practice of such invention.
    (b) The Recipient shall report promptly to the grant officer each 
invention made in the performance of work under this grant. The report 
of such invention shall--
    (1) Identify the inventor(s) by full name; and
    (2) Include such full and complete technical information concerning 
the invention as is necessary to enable an understanding of the nature 
and operation thereof.
    (c) Reporting shall be made on NASA Form 1679 Disclosure of 
Invention and New Technology (Including Software).
    (d) The Recipient hereby grants to the Government of the United 
States of America, as represented by the Administrator of the National 
Aeronautics and Space Administration, the full rights, title, and 
interest in and to each such invention throughout the world.



Sec. 1260.60  Public information.

                           Public Information

                              October 2000

    Information regarding this grant (including a copy of this award 
document) may be released by the Recipient without restriction. However, 
technical information relating to work performed under this grant where 
there was a NASA contribution should be released by the Recipient only 
after consultation with the NASA Technical Officer.



Sec. 1260.61  Allocation of risk/liability.

                      Allocation of Risk/Liability

                              October 2000

    (a) With respect to activities undertaken under this agreement, the 
Recipient agrees not to make any claim against NASA or the U.S. 
Government with respect to the injury or death of its employees or its 
contractors and subcontractor employees, or to the loss of its property 
or that of its Contractors and subcontractors, whether such injury, 
death, damage or loss arises through negligence or otherwise, except in 
the case of willful misconduct.
    (b) In addition, the Recipient agrees to indemnify and hold the U.S. 
Government and its Contractors and subcontractors harmless from any 
third party claim, judgment, or cost arising from the injury to or death 
of any person, or for damage to or loss of any property, arising as a 
result of its possession or use of any U.S. Government property.



Sec. 1260.62  Payment--to foreign organizations.

                    Payment--To Foreign Organizations

    (For grants or cooperative agreements with foreign organizations, 
this clause will be developed on a case-by-case basis.)



Sec. 1260.63  Customs clearance and visas.

                       Customs Clearance and Visas

    (For grants or cooperative agreements with foreign organizations, 
this clause will be developed on a case-by-case basis.)

[[Page 303]]



Sec. 1260.64  Taxes.

                                  Taxes

    (For grants or cooperative agreements with foreign organizations, 
this clause will be developed on a case-by-case basis.)



Sec. 1260.65  Exchange of technical data and goods.

                  Exchange of Technical Data and Goods

    (For grants or cooperative agreements with foreign organizations, 
this clause will be developed on a case-by-case basis.)



Sec. 1260.66  Listing of reportable equipment and other property.

           Listing of Reportable Equipment and Other Property

                              October 2000

    (a) Title to federally-owned property provided to the Recipient 
remains vested in the Federal Government, and shall be managed in 
accordance with Sec. 1260.133. The following items of federally-owned 
property are being provided to the recipient for use in performance of 
the work under this grant or cooperative agreement:
    {List property or state ``not applicable.''{time} 
    (b) The following specific items of equipment acquired by the 
Recipient have been identified by NASA for transfer of title to the 
Government when no longer required for performance under this grant or 
cooperative agreement. This equipment will be managed in accordance with 
1260.134, and shall be transferred to NASA or NASA's designee in 
accordance with the procedures set forth at 1260.134(g):

{List property or state ``not applicable.''{time} 



Sec. 1260.67  Equipment and other property under grants with commercial firms.

     Equipment and Other Property Under Grants With Commercial Firms

    (a) This grant permits acquisition of special purpose equipment 
required for the conduct of research. Acquisition of special purpose 
equipment costing in excess of $5,000 and not included in the approved 
proposal budget requires the prior approval of the Grant Officer unless 
the item is merely a different model of an item shown in the approved 
proposal budget.
    (b) Recipients may not purchase, as a direct cost to the grant, 
items of general purpose equipment, examples of which include but are 
not limited to office equipment and furnishings, air conditioning 
equipment, reproduction and printing equipment, motor vehicles, and 
automatic data processing equipment. If the Recipient requests an 
exception, the Recipient shall submit a written request for Grant 
Officer approval, prior to purchase by the Recipient, stating why the 
Recipient cannot charge the general purpose equipment to indirect costs.
    (c) Under no circumstances shall grant funds be used to acquire land 
or any interest therein, to acquire or construct facilities (as defined 
in 48 CFR (FAR) 45.301), or to procure passenger carrying vehicles.
    (d) The Government shall have title to equipment and other personal 
property acquired with Government funds. Such property shall be disposed 
of pursuant to 48 CFR (FAR) 45.603.
    (e) Title to Government furnished equipment (including equipment, 
title to which has been transferred to the Government prior to 
completion of the work) will remain with the Government.
    (f) The Recipient shall establish and maintain property management 
standards for Government property and otherwise manage such property as 
set forth in 48 CFR (FAR) 45.5 and 48 CFR (NFS) 1845.5.
    (g) Recipients shall submit annually a NASA Form 1018, NASA Property 
in the Custody of Contractors, in accordance with the instructions on 
the form, the provisions of 48 CFR (NFS) 1845.71 and any supplemental 
instructions that may be issued by NASA for the current reporting 
period. The original NF 1018 shall be submitted to the center Deputy 
Chief Financial Officer (Finance) with three copies sent concurrently to 
the center Industrial Property Officer. The annual reporting period 
shall be from October 1 of each year through September 30 of the 
following year. The report shall be submitted in time to be received by 
October 31. Negative reports (i.e. no reportable property) are required. 
The information contained in the reports is entered into the NASA 
accounting system to reflect current asset values for agency financial 
statement purposes. Therefore, it is essential that required reports be 
received no later than October 31. A final report is required within 30 
days after expiration of the agreement.
    (h) The requirements set forth in this special condition supercedes 
grant provision 1260.27, Equipment and Other Property.



Sec. 1260.68  Invoices and payments under grants with commercial firms.

        Invoices and Payments Under Grants With Commercial Firms

                              October 2000

    (a) Invoices for payment of actual incurred costs shall be submitted 
by the Recipient no more frequently than on a------basis.
    (b) Invoices shall be submitted by the Recipient to the following 
offices:

[[Page 304]]

    (1) The original invoice shall be sent directly to the payment 
office designated on the grant cover page.
    (2) Copies of the invoice shall be sent to the NASA Technical 
Officer and NASA Grant Officer.
    (c) All invoices shall reference the grant number.
    (d) The final invoice shall be marked ``Final'' and shall be 
submitted within 90 days of the expiration of the grant.
    (e) The requirements set forth in this special condition supercedes 
grant provision 1260.26, Financial Management.



Sec. 1260.69  Electronic funds transfer payment methods.

                Electronic Funds Transfer Payment Methods

                              October 2000

    (a) Payments under this grant will be made by the Government by 
electronic funds transfer through the Treasury Fedline Payment System 
(FEDLINE) or the Automated Clearing House (ACH), at the option of the 
Government. After award, but no later than 14 days before an invoice is 
submitted, the Recipient shall designate a financial institution for 
receipt of electronic funds transfer payments, and shall submit this 
designation to the Grant Officer or other Government official, as 
directed.
    (b) For payment through FEDLINE, the Recipient shall provide the 
following information:
    (1) Name, address, and telegraphic abbreviation of the financial 
institution receiving payment.
    (2) The American Bankers Association 9-digit identifying number for 
wire transfers of the financing institution receiving payment if the 
institution has access to the Federal Reserve Communication System.
    (3) Payee's account number at the financial institution where funds 
are to be transferred.
    (4) If the financial institution does not have access to the Federal 
Reserve Communications System, name, address, and telegraphic 
abbreviation of the correspondent financial institution through which 
the financial institution receiving payment obtains wire transfer 
activity. Provide the telegraphic abbreviation and American Bankers 
Association identifying number for the correspondent institution.
    (c) For payment through ACH, the Recipient shall provide the 
following information:
    (1) Routing transit number of the financial institution receiving 
payment (same as American Bankers Association identifying number used 
for FEDLINE).
    (2) Number of account to which funds are to be deposited.
    (3) Type of depositor account (``C'' for checking, ``S'' for 
savings).
    (4) If the Recipient is a new enrollee to the ACH system, a 
``Payment Information Form,'' SF 3881, must be completed before payment 
can be processed.
    (d) In the event the Recipient, during the performance of this 
grant, elects to designate a different financial institution for the 
receipt of any payment made using electronic funds transfer procedures, 
notification of such change and the required information specified above 
must be received by the appropriate Government official 30 days prior to 
the date such change is to become effective.
    (e) The documents furnishing the information required in this clause 
must be dated and contain the signature, title, and telephone number of 
the Recipient official authorized to provide it, as well as the 
Recipient's name and contract number.
    (f) Failure to properly designate a financial institution or to 
provide appropriate payee bank account information may delay payments of 
amounts otherwise properly due.
    (g) The requirements set forth in this special condition supercedes 
grant provision 1260.26, Financial Management.

                         Post-Award Requirements



Sec. 1260.70  Delegation of administration.

    (a) In most cases, property administration of NASA grants and 
cooperative agreements will be delegated to the Office of Naval Research 
(ONR). Other administration duties may be assigned as listed on NF 1674. 
Exceptions to this policy are:
    (1) Training grants will not be delegated.
    (2) Grants of short duration (9 months or less) or low dollar value 
($50k or less) will normally not be delegated.
    (3) Grant officers may waive specific administration requirements 
(as listed on NF 1674) in exceptional circumstances for individual 
grants. Exceptions to administration duties that are normally delegated 
must be justified and approved in writing by the Grant Officer, and made 
part of the file.
    (4) Waiver of delegation of property administration duties that are 
to be instituted by a center as a standard practice constitutes a 
deviation to this handbook, and requires approval in accordance with 
Sec. 1260.7.

[[Page 305]]

    (b) Grant and cooperative agreement administration delegations will 
be made by use of NF 1674 (Exhibit F to subpart A of this part 1260). 
When administration duties have been assigned to ONR, the NF 1674, the 
award document, and the approved budget will be sent to ONR in a single 
package (electronically, when possible).
    (c) Upon acceptance of a delegation, ONR agrees to the following:
    (1) On a monthly basis, ONR will provide each center a Report of 
Accepted Delegations listing each grant or cooperative agreement 
accepted for administration, with pertinent information including the 
ONR point of contacts name, phone number, and e-mail address.
    (2) On a monthly basis, ONR will electronically send to each Center 
Commercial Technology Office a listing of New Technology Reports it has 
received.
    (3) On a quarterly basis, ONR will provide the cognizant grant 
officers a ``List of Delinquent Recipients'' that failed to provide 
timely interim or final reports.
    (4) Property administration should always be delegated, even if it 
is not anticipated that property will be provided by the government or 
acquired by the recipient. ONR shall follow DoD property administration 
policies and procedures, plus the following NASA requirements:
    (i) The recipient shall maintain property records and manage 
nonexpendable personal property in accordance with 14 CFR 1260.134. 
During Property Control System Analyses (PCSA), ONR will check the 
recipient's understanding and test compliance of property management 
requirements, including the accuracy of recipient property reports. ONR 
will provide one copy of each PCSA Report to the appropriate NASA center 
industrial property officer.
    (ii) ONR will investigate and notify NASA as appropriate for any 
unauthorized property acquisitions by the recipient. See the provision 
at Sec. 1260.27.
    (iii) ONR will notify the cognizant grant officer and industrial 
policy officer when property is lost, damaged or destroyed.
    (iv) Under no circumstances will Government property be disposed 
without instructions from NASA.
    (v) Prior to disposition, except when returned to NASA or reutilized 
on other NASA programs, ONR will ensure all NASA identifications are 
removed or obliterated from property, and hard drives of computers are 
cleared of sensitive or NASA owned/licensed software/data.

[65 FR 62900, Oct. 19, 2000, as amended at 67 FR 30544, May 7, 2002]



Sec. 1260.71  Supplements and renewals.

    (a) A NASA grant officer can unilaterally make minor or 
administrative changes to a grant; e.g., Reports Substitution (Sec. 
1260.55) and Withholding (Sec. 1260.56).
    (b) To ensure timely completion and closeout of grants, renewal 
proposals to continue the same effort at the same institution that are 
accepted for award by NASA will be awarded as new grants versus 
continuation of the existing grant.
    (1) When work under a grant is to be continued through an extension, 
or through a renewal of the work under a new grant, the continuation 
effort should be instituted concurrent with the original expiration 
date. When possible, the period of performance should be continuous with 
the prior grant period of performance. The extension or a renewal of a 
grant (see Sec. 1260.13(a)) beyond the original expiration date is a 
unilateral decision by NASA based upon availability of funds, continued 
research relevance, and progress made by the recipient.
    (2) To insure uninterrupted programs, the technical office should 
forward to the grant office a completed award package, including a 
funded procurement request, technical evaluation of the proposed budget, 
and other support documentation, at least 29 days before the expiration 
of the funded period.
    (c) Requests by the recipient to have a grant modified must be in 
writing to the grant officer. Prior approvals and changes are detailed 
in Sec. 1260.125.
    (d) A no-cost extension can be issued by the recipient as detailed 
in paragraph (b) of the provision at Sec. 1260.23,

[[Page 306]]

Extensions, and Sec. 1260.125(e). NASA reserves the right to disapprove 
the extension request if the requirements set forth at Sec. 
1260.125(e)(2) are not met, including if the extension request is not 
received ten days prior to the grant expiration date.
    (e) When two or more actions are completed on a single supplement, 
the supplement will reflect the effective date of the earliest action.



Sec. 1260.72  Adherence to original budget estimates.

    (a) Although NASA assumes no responsibility for budget overruns, the 
recipient may spend grant funds without strict adherence to individual 
allocations within the proposed budgets, except that recipients must 
comply with prior approval requirements for property and subcontracts as 
provided in Sec. Sec. 1260.27 and 1260.33.
    (b) The revision of budgets and program plans are covered in Sec. 
1260.125.



Sec. 1260.73  Transfers, novations, and change of name agreements.

    (a) When the principal investigator changes organizational 
affiliation and desires support for the research at a new location, 
(i.e., for the grant to be transferred), the grant officer should first 
consult with the institution that originally received the grant to 
ascertain whether an acceptable replacement principal investigator can 
be substituted to complete the research effort. The final decision on 
whether an acceptable replacement is available, or that the research 
effort should follow the original principal investigator to the new 
location, is at the discretion of the NASA technical Officer. If the 
decision is made to transfer the grant, the grant at the original 
institution must be terminated, and a new proposal must be submitted to 
NASA via the appropriate officials of the new institution. Although such 
a proposal will be reviewed in the normal manner, every effort will be 
made to expedite a decision. Regardless of the action taken on the new 
proposal, final reports on the original grant, describing the scientific 
progress and expenditure to date, will be required.
    (b) Novation and change of name agreements are administrative 
actions requiring the involvement of the grant officer. Novations are 
legal instruments under which obligations of an organization, (including 
the performance of grants), are assumed by a new organization arising 
out of a transfer of assets, usually as a result of a merger or 
acquisition by the new organization. Change of name agreements are legal 
instruments executed by an organization and NASA that recognizes the 
legal change of name of the organization without disturbing the original 
rights or obligations of the parties. Procedures for completing novation 
and change of name agreements are set forth at FAR subpart 42.12. All 
novation agreements and change of name agreements of the recipient, 
prior to execution, shall be reviewed by legal counsel for legal 
sufficiency. It is recommended that the cognizant ONR office be 
contacted to determine responsibilities to complete novation or change 
of name agreements.



Sec. 1260.74  Property use, disposition, and vesting of title.

    (a) Approval for acquisition of property shall conform to the 
following procedures:
    (1) Providing existing government equipment or property, or allowing 
acquisition of property by a grant recipient, should only be allowed in 
situations where the recipient justifies the need for the property and 
cannot carry out the effort with existing property already in the 
possession of the recipient.
    (2) In accordance with OMB Circulars A-21 and A-122, prior approval 
of property acquisitions is required for special purpose equipment with 
a unit cost over $5,000, general purpose equipment with a unit cost over 
$5,000, (unless a lower threshold has been established by the 
recipient), or coherent systems (as defined in Sec. 1260.74(e)) with a 
value of over $5,000. Grant awards under the Federal Demonstration 
Partnership are exempt from this requirement. The NASA grant officer 
will retain authority for approving the expenditure of grant funds for 
the acquisition of such equipment. Requests by grant recipients for the 
acquisition of equipment

[[Page 307]]

shall be supported by written documentation setting forth the 
description, purpose, and acquisition value of the equipment, and 
include a written certification that the equipment will be used 
exclusively for research. (A change in the model number of a prior 
approved piece of equipment does not require re-submission for that 
item.) NASA grant officers shall not approve the expenditure of grant 
funds for the acquisition of equipment unless the recipient's 
justification for the equipment demonstrates that the equipment will be 
used exclusively for research activities.
    (b) Vesting of title to property acquired by the recipient shall 
conform to the following procedures:
    (1) For awards to educational institutions and non-profit 
organizations, special purpose and general purpose equipment costing in 
excess of $5,000 (unless a lower threshold has been established by the 
recipient) acquired by the recipient under a grant or cooperative 
agreement for the purpose of research shall be titled to the recipient 
as ``exempt'' equipment as set forth at Sec. 1260.133(b). The recipient 
shall have no further obligation or accountability to the Federal 
Government for the use or disposition of ``exempt'' property, including 
reporting requirements. Special purpose and general purpose equipment 
costing in excess of $5,000 (unless a lower threshold has been 
established by the recipient) acquired by the recipient under a grant or 
cooperative agreement for non-research work shall be titled to the 
recipient in accordance with Sec. 1260.134.
    (2) For awards to commercial organizations, the following property 
procedures will apply:
    (i) Acquisition of special purpose equipment costing in excess of 
$5,000 and not included in the approved proposal budget requires the 
prior approval of the grant officer unless the item is merely a 
different model of an item shown in the approved proposal budget.
    (ii) Recipients may not purchase, as a direct cost to the grant, 
items of general purpose equipment, examples of which include but are 
not limited to office equipment and furnishings, air conditioning 
equipment, reproduction and printing equipment, motor vehicles, and 
automatic data processing equipment. If the recipient requests an 
exception, the recipient shall submit a written request for grant 
officer approval, prior to purchase by the recipient, stating why the 
recipient cannot charge the general purpose equipment to indirect costs.
    (iii) Under no circumstances shall grant funds be used to acquire 
land or any interest therein, to acquire or construct facilities (as 
defined in 48 CFR (FAR) 45.301), or to procure passenger carrying 
vehicles.
    (iv) The Government shall have title to equipment and other personal 
property acquired with Government funds. Such property shall be disposed 
of pursuant to 48 CFR (FAR) 45.603.
    (v) Title to Government furnished equipment (including equipment, 
title to which has been transferred to the Government prior to 
completion of the work) will remain with the Government.
    (vi) The Recipient shall establish and maintain property management 
standards for Government property and otherwise manage such property as 
set forth in 48 CFR (FAR) 45.5 and 48 CFR (NFS) 1845.5.
    (vii) Recipients shall submit annually a NASA Form 1018, NASA 
Property in the Custody of Contractors, in accordance with the 
instructions on the form, the provisions of 48 CFR (NFS) 1845.71 and any 
supplemental instructions that may be issued by NASA for the current 
reporting period. The original NF 1018 shall be submitted to the center 
Deputy Chief Financial Officer, Finance, with three copies sent 
concurrently to the center industrial property officer. The annual 
reporting period shall be from October 1 of each year through September 
30 of the following year. The report shall be submitted in time to be 
received by October 31. Negative reports (i.e. no reportable property) 
are required. The information contained in the reports is entered into 
the NASA accounting system to reflect current asset values for agency 
financial statement purposes. Therefore, it is essential that required 
reports be received no later than October 31. A final report is required 
within

[[Page 308]]

30 days after expiration of the agreement.
    (c) Equipment with a unit price of $5,000 or less (unless a lower 
threshold has been established by the recipient) is properly classified 
as ``supplies,'' is not subject to transfer to the Agency, and will be 
titled to the recipient in accordance with Sec. 1260.135.
    (d) Title to Federally-owned property remains with the Government, 
and is subject to the following additional requirements:
    (1) In accordance with Public Law 94-519, NASA will not acquire 
property from other agencies for use on NASA grants.
    (2) Government property provided to a grant recipient for use under 
a grant will be identified through inclusion of the special condition at 
Sec. 1260.66, Listing of Reportable Equipment and Other Property.
    (3) When Federally-owned property is reported excess by a recipient, 
the administrative grant officer will report the equipment to the center 
industrial property officer, who will consult with the technical officer 
concerning property disposition.
    (4) NASA policy encourages the donation of existing, excess NASA 
property to nonprofit organizations whose primary purpose is the conduct 
of scientific research.
    (e) When two or more components are fabricated into a single 
coherent system in such a way that the components lose their separate 
identities, and their separation would render the system useless for its 
original purpose, the components will be considered as integral parts of 
a single system. If such a system includes recipient-owned components, 
the property will be considered to be exempt. The requirement for 
agreement regarding NASA's retention of its option to take title shall 
further apply where it is expected that one or more recipient-acquired 
components costing $5,000 or less will be fabricated into a single 
coherent system costing in excess of $5,000. However, an item that is 
used ancillary to a system, without loss of its separate identity and 
usefulness, will be considered as a separate item and not as an integral 
component of the system.
    (f) Property administration and plant clearance for all grants and 
cooperative agreements will be delegated to the appropriate ONR office.
    (g) NASA grant officers will provide copies of property related 
grant documentation to the center industrial property officer and to the 
Office of Naval Research (at time of award or modification) when the 
NASA program office elects to retain title to an existing item of 
Government property, to furnish the property to the recipient in lieu of 
donation, or to take title to property acquired by the recipient. When 
NASA acquires title to items of recipient acquired equipment or when 
NASA transfers an item of Government property to a recipient as 
Federally owned property, the NASA grant officer shall notify the 
cognizant NASA center financial management officer, the industrial 
property officer and Office of Naval Research to ensure proper entries 
in financial and property accounting records.



Sec. 1260.75  Summary of report requirements.

    (a) Report responsibilities of the grant officer are set forth as 
follows:
    (1) The grant officer is responsible for submitting the Individual 
Procurement Action Report (NF 507) for all grant and cooperative 
agreement actions.
    (2) The Committee on Academic Science and Engineering (CASE) Report 
(NF 1356), for grants and cooperative agreements awarded to educational 
institutions, is submitted by the program office with the basic award 
procurement request and completed by the grant officer. The grant 
officer should initiate an amendment to the NF 1356 whenever the 
principal investigator or the technical officer changes.
    (b) Intermediate report responsibilities of the recipient are as 
follows:
    (1) The Federal Cash Transactions Report (SF 272) shall be submitted 
by the recipient, in accordance with Sec. 1260.26, as a condition of 
receiving advance payments. Instructions and answers to payment 
questions will be provided by the NASA Financial Management Office of 
the Center that has been assigned financial cognizance of the grant. 
(See Sec. 1260.152.)

[[Page 309]]

    (2) The annual Inventory Report of Federally Owned Property in 
Custody of the Recipient will be submitted by the recipient as required 
by Sec. 1260.27(e). The listing shall include information specified in 
Sec. 1260.134(f) together with beginning and ending dollar value totals 
for the reporting period. Negative reports (i.e., where no property has 
been acquired or provided, or where all acquired property has been 
titled to the recipient as exempt) are not required. Please note that 
any property acquired by the recipient and not titled to the recipient 
as exempt, must be reported, even when titled to the recipient as non-
exempt property in accordance with the procedures set forth at Sec. 
1260.134.
    (3) A Progress Report shall be submitted in accordance with 
Sec. Sec. 1260.22 and 1260.151. Recipients are not required to submit 
more than the original and two copies. At the request of the technical 
officer, technical reports can be submitted as new findings are made 
rather than on a predetermined time schedule, by use of the special 
condition at Sec. 1260.55, entitled ``Reports Substitution.''
    (4) An Educational Activity Report is required annually for 
education grants in accordance with Sec. 1260.22. The report is due 60 
days prior to the anniversary date of the grant or cooperative 
agreement.
    (5) A Report of Joint NASA/Recipient Inventions is required for all 
grants and cooperative agreements, as applicable, in accordance with 
Sec. 1260.28.
    (6) A Disclosure of Subject Invention is required for all grants and 
cooperative agreements, as applicable, in accordance with Sec. 1260.28. 
The reporting of the invention shall be made within two months after the 
inventor discloses it to the recipient, and will be reported on NASA 
Form 1679 Disclosure of Invention and New Technology (Including 
Software) in accordance with the procedures set forth under Sec. 
1260.28.
    (7) An Election of Title to a Subject Invention is required for all 
grants and cooperative agreements, as applicable, in accordance with 
Sec. 1260.28. The notice is due within 1 year after disclosure of the 
subject invention if a statutory bar exists, otherwise within 2 years.
    (8) A Listing of Subject Inventions is required for all grants and 
cooperative agreement, in accordance with Sec. 1260.28. The listing is 
due annually.
    (9) A Notification of Decision to Forego Patent Protection is 
required for all grants and cooperative agreements, as applicable, in 
accordance with Sec. 1260.28. The notification is due 30 days before 
the expiration of the response period.
    (10) A Utilization of Subject Invention Report is required for all 
grants and cooperative agreements, as applicable, in accordance with 
Sec. 1260.28. The report is due annually.
    (11) A Notice of Proposed Transfer of Technology is required for all 
grants and cooperative agreements, as applicable, in accordance with 
Sec. 1260.30. The notice is required prior to transferring technology 
to a foreign firm or institution.
    (12) An Annual NASA Form 1018, NASA Property in the Custody of 
Contractors, is required for all grants and cooperative agreements with 
commercial organizations. The reports are due October 31st of each year. 
Negative reports (i.e. no reportable property) are required.
    (c) Final report responsibilities of the recipient are as follows:
    (1) A Subject Inventions Final Report is required for all grants and 
cooperative agreements, as applicable, in accordance with Sec. 1260.28. 
The report is due within 90 days after the expiration of the grant or 
cooperative agreement.
    (2) A Final Federal Cash Transactions Report, SF 272, is required 
from the recipient for each grant, in accordance with Sec. Sec. 1260.26 
and 1260.152. The report is due within 90 calendar days after the 
expiration date of the grant or cooperative agreement.
    (3) A Summary of Research is required for all research grants in 
accordance with Sec. 1260.22. Citation of publications resulting from 
research, or abstracts thereof, may serve as all or part of the Summary 
of Research. The Summary of Research shall also include a complete list 
of all subject inventions (or negative statement) required to be 
disclosed that resulted from the work (see the provision at Sec. 
1260.28).

[[Page 310]]

    (4) A Final Inventory Report of Federally Owned Property, including 
equipment where title was taken by the Government, is required for all 
grants and cooperative agreements, where property or equipment has been 
provided by the government or acquired by the recipient, Sec. 1260.27. 
The report is due within 60 days after the expiration of the grant or 
cooperative agreement. Negative reports (i.e., where no property has 
been acquired or provided) are required.
    (5) A Final Educational Activity Report is required for all 
education grants or cooperative agreements. The report is due within 90 
days after the expiration of the grant or cooperative agreement.
    (6) A Faculty Advisor Survey is required for all training grants. 
The report is due from the student's faculty advisor within 60 days 
after the expiration of the training grant.
    (7) A Summary of Research is required for all training grants. The 
report is due from the student within 90 days after the expiration of 
the training grant.
    (8) An Administrative Report is required for all training grants. 
The report is due within 90 days after the expiration of the training 
grant.
    (9) A Student Evaluation Form is required for all training grants. 
The form is due from the student within 90 days after the expiration of 
the training grant.
    (10) A Final NASA Form 1018, NASA Property in the Custody of 
Contractors, is required for all grants and cooperative agreements with 
commercial organizations. The report is due within 30 days after the 
expiration of the grant or cooperative agreement.
    (d) To clarify report requirements to grant and cooperative 
agreement recipients, the grant officer will include the ``Required 
Publications and Reports'' form (Exhibit G to subpart A of this part 
1260) as part of the award document.

[65 FR 62900, Oct. 19, 2000, as amended at 68 FR 50469, Aug. 21, 2003]



Sec. 1260.76  Termination and enforcement.

    (a) Suspension or termination of a grant prior to the planned 
expiration date must be reserved for exceptional situations that cannot 
be handled any other way (see Sec. 1260.160).
    (b) The Director, Program Operations Division (Code HS), shall 
provide to the General Services Administration information concerning 
all NASA debarments, suspensions, determinations of ineligibility, and 
voluntary exclusions of persons in accordance with 14 CFR 1265.505.
    (c) Remedies for Noncompliance are delineated in Sec. 1260.162.
    (d) Failure of the recipient to provide a required report can result 
in the Agency and the public being denied information about grant 
activities, NASA officials having less information for making decisions, 
grant closeout being delayed, and confidence being undermined as to 
whether the recipient will meet the requirements under other grants. 
Because NASA grants provide for advance payments, a recipient could be 
fully paid before final reports are due. At this point, it is too late 
to withhold payment on the existing grant. Consistent with Sec. Sec. 
1260.122(h) and 1260.162(a), NASA may suspend or terminate advance 
payments from recipients that fail to comply with reporting 
requirements.
    (e) To remedy failure to furnish timely reports, special condition 
at Sec. 1260.56, Withholding, should be used when awarding a new grant 
or modifying an existing grant with non-responsive organizations. 
Special condition at Sec. 1260.56 allows NASA to suspend or terminate 
advance payments under an institution's letter of credit pending receipt 
of the satisfactorily completed reports required in Sec. 1260.75.
    (f) The NASA Financial Management Office, notifying the Grant 
Officer, shall take action to either suspend or terminate a recipient's 
advance payments when--
    (1) A recipient organization is unwilling or unable to establish a 
financial management system that meets the requirements of advance 
payments as evidenced by an audit report or failure to comply with the 
NASA requirements;
    (2) A recipient organization is unwilling or unable to report, on an 
accurate and timely basis, cash disbursements or cash balances as 
required by NASA.

[[Page 311]]

Advance payments shall be temporarily suspended when two (2) successive 
quarterly reports are late or when two (2) reports are late in a fiscal 
year; or
    (3) A recipient organization has demonstrated an unwillingness or 
inability to establish procedures that will minimize time elapsing 
between drawdowns and related disbursements.
    (g) In addition to the situations delineated in paragraph (f) of 
this section, the NASA Grant Officer may direct the NASA Financial 
Management Office to either suspend or terminate a recipient's advance 
payments under circumstances where a recipient has otherwise failed to 
comply with the project objectives, the terms and conditions of the 
award, or NASA reporting requirements.
    (h) The Financial Management Office (for the cases set forth in 
paragraph (f) of this section) or the Grant Officer (for all other 
cases) may resume advance payments and may release any previously 
withheld amounts when the recipient has taken corrective action that 
makes suspension or withholding no longer necessary. To release for 
payment amounts they have previously withheld, grant officers shall send 
a memorandum to the Financial Management Office. The Financial 
Management Office shall likewise coordinate any release of withheld 
payments with the grant officer.

[65 FR 62900, Oct. 19, 2000, as amended at 68 FR 50469, Aug. 21, 2003]



Sec. 1260.77  Closeout procedures.

    Closeout is the process by which NASA determines that all applicable 
administrative actions and all required work under the instrument have 
been completed by both the recipient and NASA and no further activity is 
expected (see Sec. 1260.171).
    (a) Closeout will begin within 90 days after the expiration date of 
the grant. NASA's goal for closeout to be completed is within 180 days 
after the expiration of the grant.
    (b) Those who are designated to receive NASA reports (except for 
CASI, which only acknowledges receipt) must provide certification to the 
NASA grant officer that the reports have been received and 
satisfactorily completed. Electronic certifications are acceptable. See 
Sec. Sec. 1260.75 and 1260.171(a). The property certification should 
indicate that disposal of any remaining Government property has been 
made as directed and that NASA has been compensated for any residual 
inventory.
    (c) When ONR has been delegated grant and cooperative agreement 
administration duties as listed on the NF 1674, and has completed its 
actions, the NASA grant officer is to receive from ONR all of the 
following:
    (1) For notification of the completion of property administration 
duties, a DD Form 1593 Contract Administration Completion Record (or 
equivalent electronic notification), without supporting or backup 
documents, indicating property administration is complete.
    (2) For other administration duties, an electronic notification 
confirming that all assigned administration duties have been completed 
is sufficient. Although a DD Form 1594 is not required, ONR may use this 
form if they choose.
    (d) A grant is administratively complete and ready for closeout by 
NASA when:
    (1) Property disposition has been completed.
    (2) The grant officer has obtained from the NASA technical officer 
certifications that all reports have been received.
    (3) When administration duties have been delegated to ONR, an 
electronic notification confirming the completion of all assigned 
administration duties has been received. Although not required, a DD 
Form 1594 may be used by ONR in lieu of the electronic notification.
    (4) Payments have been made for allowable reimbursable costs, and 
refunds have been received for any balance of unobligated cash advanced 
that is not authorized to be retained for use on other grants (see 
Sec. Sec. 1260.171 through 1260.173).
    (e) Grants will not be closed out if litigation or an appeal is 
pending, or when termination action has not been completed.
    (f) Records will be retained in accordance with Sec. 1260.153 and 
NPG 1441.1, Record Retention Schedules. As set

[[Page 312]]

forth in the NPG, grant files are generally retired to the Federal 
Records Center 2 years after completion of the grant or agreement, and 
destroyed when 6 years, 3 months old.

[65 FR 62900, Oct. 19, 2000, as amended at 67 FR 30545, May 7, 2002]

         Appendix to Subpart A of Part 1260--Listing of Exhibits

Exhibit A--Budget Summary
Exhibit B--Standard Grant and Cooperative Agreement Cover Page
Exhibit C--Provisions
Exhibit D--Federal Demonstration Partnership Terms and Conditions
Exhibit E--Special Conditions for Cooperative Agreements between NASA 
and the Commercial Space Centers
Exhibit F--NASA 1674 Letter of Delegation for the Administration of 
Grants and Cooperative Agreements
Exhibit G--Required Publications and Reports
    Note: Exhibits are available at NASA Headquarters, Code HC, 
Washington, D.C. 20546.



     Subpart B--Uniform Administrative Requirements for Grants and 
Cooperative Agreements With Institutions of Higher Education, Hospitals, 
                   and Other Non-Profit Organizations

                                 General



Sec. 1260.101  Purpose.

    This subpart implements OMB Circular No. A-110 and establishes 
uniform administrative requirements for NASA grants and agreements 
awarded to institutions of higher education, hospitals, and other non-
profit organizations. NASA shall not impose additional or inconsistent 
requirements, except as provided in Sec. Sec. 1260.104 and 1260.114 or 
unless specifically required by Federal statute or executive order. Non-
profit organizations that implement Federal programs for the States are 
also subject to State requirements.



Sec. 1260.102  Definitions.

    Accrued expenditures means the charges incurred by the recipient 
during a given period requiring the provision of funds for:
    (1) Goods and other tangible property received;
    (2) Services performed by employees, contractors, subcontractors, 
and other payees; and
    (3) Other amounts becoming owed under programs for which no current 
services or performance is required.
    Accrued income means the sum of:
    (1) Earnings during a given period from services performed by the 
recipient, and goods and other tangible property delivered to 
purchasers; and
    (2) Amounts becoming owed to the recipient for which no current 
services or performance is required by the recipient.
    Acquisition cost of equipment means the net invoice price of the 
equipment, including the cost of modifications, attachments, 
accessories, or auxiliary apparatus necessary to make the property 
usable for the purpose for which it was acquired. Other charges, such as 
the cost of installation, transportation, taxes, duty or protective in-
transit insurance, shall be included or excluded from the unit 
acquisition cost in accordance with the recipient's regular accounting 
practices.
    Advance means a payment made by Treasury check or other appropriate 
payment mechanism to a recipient upon its request either before outlays 
are made by the recipient or through the use of predetermined payment 
schedules.
    Award means a grant or cooperative agreement that provides support 
or stimulation to accomplish a public purpose. Awards include research 
grants, training grants, facilities grants, educational grants, and 
cooperative agreements in the form of money or property in lieu of 
money, by NASA to an eligible recipient. The term does not include: 
Technical assistance, which provides services instead of money; other 
assistance in the form of loans, loan guarantees, interest subsidies, or 
insurance; direct payments of any kind to individuals; and, contracts 
which are required to be entered into and administered under procurement 
laws and regulations.
    Cash contributions means the recipient's cash outlay, including the 
outlay of money contributed to the recipient by third parties.
    Closeout means the process by which NASA determines that all 
applicable

[[Page 313]]

administrative actions and all required work of the award have been 
completed by the recipient and NASA.
    Contract means a procurement contract under an award, and a 
procurement subcontract under a recipient's contract.
    Cost sharing or matching means that portion of project or program 
costs not borne by NASA.
    Date of completion means the date on which all work under an award 
is completed or the date on the award document, or any supplement or 
amendment thereto, on which NASA sponsorship ends.
    Disallowed costs means those charges to an award that NASA 
determines to be unallowable, in accordance with the applicable Federal 
cost principles or other terms and conditions contained in the award.
    Equipment means tangible nonexpendable personal property including 
exempt property charged directly to the award having a useful life of 
more than one year and an acquisition cost of $5,000 or more per unit. 
However, consistent with recipient policy, lower limits may be 
established.
    Excess property means property under the control of any Federal 
awarding agency that, as determined by the head thereof, is no longer 
required for its needs or the discharge of its responsibilities.
    Exempt property means tangible personal property acquired in whole 
or in part with Federal funds, where a Federal awarding agency has 
statutory authority to vest title in the recipient without further 
obligation to the Federal Government. An example of exempt property 
authority is contained in the Federal Grant and Cooperative Agreement 
Act (31 U.S.C. 6306) for property acquired under an award to conduct 
basic or applied research by a non-profit institution of higher 
education or non-profit organization whose principal purpose is 
conducting scientific research.
    Federal funds authorized means the total amount of Federal funds 
obligated by the Federal Government for use by the recipient. This 
amount may include any authorized carryover of unobligated funds from 
prior funding periods when permitted by agency regulations or agency 
implementing instructions.
    Federal share of real property, equipment, or supplies means that 
percentage of the property's acquisition costs and any improvement 
expenditures paid with Federal funds.
    Funding period means the period of time when NASA funding is 
available for obligation by the recipient.
    Intangible property and debt instruments means, but is not limited 
to, trademarks, copyrights, patents and patent applications and such 
property as loans, notes and other debt instruments, lease agreements, 
stock and other instruments of property ownership, whether considered 
tangible or intangible.
    NASA means the National Aeronautics and Space Administration (NASA), 
including its authorized representatives.
    Obligations mean the amounts of orders placed, contracts and grants 
awarded, services received and similar transactions during a given 
period that require payment by the recipient during the same or a future 
period.
    Outlays or expenditures means charges made to the project or 
program. They may be reported on a cash or accrual basis. For reports 
prepared on a cash basis, outlays are the sum of cash disbursements for 
direct charges for goods and services, the amount of indirect expense 
charged, the value of third party in-kind contributions applied and the 
amount of cash advances and payments made to subcontractors. For reports 
prepared on an accrual basis, outlays are the sum of cash disbursements 
for direct charges for goods and services, the amount of indirect 
expense incurred, the value of in-kind contributions applied, and the 
net increase (or decrease) in the amounts owed by the recipient for 
goods and other property received, for services performed by employees, 
contractors, subcontractors and other payees and other amounts becoming 
owed under programs for which no current services or performance are 
required.
    Personal property means property of any kind except real property. 
It may be tangible, having physical existence,

[[Page 314]]

or intangible, having no physical existence, such as copyrights, 
patents, or securities.
    Prior approval means written approval by an authorized official 
evidencing prior consent.
    Program income means gross income earned by the recipient that is 
directly generated by a supported activity or earned as a result of the 
award (see exclusions in Sec. 1260.124(c) and (f)). Program income 
includes, but is not limited to, income from fees for services 
performed, the use or rental of real or personal property acquired under 
federally-funded projects, the sale of commodities or items fabricated 
under an award, license fees and royalties on patents and copyrights, 
and interest on loans made with award funds. Interest earned on advances 
of NASA funds is not program income. Except as otherwise provided in the 
regulations in this subpart or the terms and conditions of the award, 
program income does not include the receipt of principal on loans, 
rebates, credits, discounts, etc., or interest earned on any of them.
    Project costs means all allowable costs, as set forth in the 
applicable Federal cost principles, incurred by a recipient and the 
value of the contributions made by third parties in accomplishing the 
objectives of the award during the project period.
    Project period means the period established in the award document 
during which NASA sponsorship begins and ends.
    Property means, unless otherwise stated, real property, equipment, 
intellectual property and debt instruments.
    Real property means land, including land improvements, structures 
and appurtenances thereto, but excludes movable machinery and equipment.
    Recipient means an organization receiving an award directly from 
NASA to carry out a project or program. The term includes public and 
private institutions of higher education, public and private hospitals, 
and other quasi-public and private non-profit organizations such as, but 
not limited to, community action agencies, research institutes, 
educational associations, and health centers. The term may include 
commercial organizations, foreign or international organizations (such 
as agencies of the United Nations) which are recipients, subcontractors, 
or contractors or subcontractors of recipients. The term does not 
include government-owned contractor-operated facilities or research 
centers providing continued support for mission-oriented, large-scale 
programs that are government-owned or controlled, or are designated as 
federally-funded research and development centers.
    Research and development means all research activities, both basic 
and applied, and all development activities that are supported at 
universities, colleges, and other nonprofit institutions. ``Research'' 
is defined as a systematic study directed toward fuller scientific 
knowledge or understanding of the subject studied. ``Development'' is 
the systematic use of knowledge and understanding gained from research 
directed toward the production of useful materials, devices, systems, or 
methods, including design and development of prototypes and processes. 
The term ``research'' also included activities involving the training of 
individuals in research techniques where such activities utilize the 
same facilities as other research and development activities and where 
such activities are not included in the instruction function.
    Small awards means a grant or cooperative agreement not exceeding 
the small purchase threshold.
    Subaward means an award of financial assistance in the form of 
money, or property in lieu of money, made under an award by a recipient 
to an eligible subrecipient or by a subrecipient to a lower tier 
subrecipient. The term includes financial assistance when provided by 
any legal agreement, even if the agreement is called a contract, but 
does not include procurement of goods and services nor does it include 
any form of assistance which is excluded from the definition of 
``award'' of this section.
    Subrecipient means the legal entity to which a subaward is made and 
which is accountable to the recipient for the use of the funds provided. 
The term may include foreign or international organizations (such as 
agencies of the United Nations).

[[Page 315]]

    Supplies means all personal property excluding equipment, 
intellectual property, and debt instruments as defined in this section, 
and inventions of a contractor conceived or first actually reduced to 
practice in the performance of work under a funding agreement (``subject 
inventions''), as defined in 37 CFR part 401, ``Rights to Inventions 
Made by Nonprofit Organizations and Small Business Firms Under 
Government Grants, Contracts, and Cooperative Agreements.''
    Suspension means an action by NASA that temporarily withdraws NASA 
sponsorship under an award, pending corrective action by the recipient 
or pending a decision to terminate the award by NASA. Suspension of an 
award is a separate action from suspension under Federal agency 
regulations implementing Executive Orders 12549 and 12689, ``Debarment 
and Suspension.''
    Termination means the cancellation of Federal sponsorship, in whole 
or in part, under an agreement at any time prior to the date of 
completion.
    Third party in-kind contributions means the value of non-cash 
contributions provided by non-Federal third parties. Third party in-kind 
contributions may be in the form of real property, equipment, supplies 
and other expendable property, and the value of goods and services 
directly benefiting and specifically identifiable to the project or 
program.
    Unliquidated obligations, for financial reports prepared on a cash 
basis, means the amount of obligations incurred by the recipient that 
have not been paid. For reports prepared on an accrued expenditure 
basis, they represent the amount of obliga tions incurred by the 
recipient for which an outlay has not been recorded.
    Unobligated balance means the portion of the funds authorized by 
NASA that has not been obligated by the recipient and is determined by 
deducting the cumulative obligations from the cumulative funds 
authorized.
    Unrecovered indirect cost means the difference between the amount 
awarded and the amount which could have been awarded under the 
recipient's approved negotiated indirect cost rate.
    Working capital advance means a procedure whereby funds are advanced 
to the recipient to cover its estimated disbursement needs for a given 
initial period.



Sec. 1260.103  Effect on other issuances.

    For awards subject to this subpart, the requirements of this subpart 
apply, except to the extent that any administrative requirements of 
codified program regulations, program manuals, handbooks and other 
nonregulatory materials are required by statute, or are authorized in 
accordance with the deviations provision in Sec. 1260.104.



Sec. 1260.104  Deviations.

    The Office of Management and Budget (OMB) may grant exceptions for 
classes of grants or recipients subject to the requirements of this 
subpart when exceptions are not prohibited by statute. However, in the 
interest of maximum uniformity, exceptions from the requirements of this 
subpart shall be permitted only in unusual circumstances. NASA may apply 
more restrictive requirements to a class of recipients when approved by 
OMB. NASA may apply less restrictive requirements when awarding small 
awards, except for those requirements which are statutory. Exceptions on 
a case-by-case basis may also be made by NASA. See Sec. 1260.6(c).



Sec. 1260.105   Subawards.

    Unless sections of this subpart specifically exclude subrecipients 
from coverage, the provisions of this subpart shall be applied to 
subrecipients performing work under awards if such subrecipients are 
institutions of higher education, hospitals or other non-profit 
organizations. State and local government subrecipients are subject to 
the provisions of 14 CFR part 1273, ``Uniform Administrative 
Requirements for Grants and Cooperative Agreements to State and Local 
Governments.''

                         Pre-Award Requirements



Sec. 1260.110   Purpose.

    Sections 1260.111 through 1260.117 prescribe forms and instructions 
and other pre-award matters to be used in applying for NASA awards.

[[Page 316]]



Sec. 1260.111  Pre-award policies.

    (a) Use of grants and cooperative agreements, and contracts. In each 
instance, NASA shall decide on the appropriate award instrument (i.e. 
grant, cooperative agreement, or contract). The Federal Grant and 
Cooperative Agreement Act (31 U.S.C. 6301-08) governs the use of grants, 
cooperative agreements and contracts. A grant or cooperative agreement 
shall be used only when the principal purpose of a transaction is to 
accomplish a public purpose of support or stimulation authorized by 
Federal statute. The statutory criterion for choosing between grants and 
cooperative agreements is that for the latter, ``substantial involvement 
is expected between the executive agency and the State, local 
government, or other recipient when carrying out the activity 
contemplated in the agreement.'' Contracts shall be used when the 
principal purpose is acquisition of property or services for the direct 
benefit or use of the Federal Government.
    (b) Public notice and priority setting. NASA notifies the public of 
its intended funding priorities for discretionary grant programs through 
Broad Agency Announcements, Cooperative Agreement Notices, Agency-Wide 
program announcements, and other approved forms of announcements.



Sec. 1260.112  Forms for applying for Federal assistance.

    (a) NASA shall comply with the applicable report clearance 
requirements of 5 CFR part 1320, ``Controlling Paperwork Burdens on the 
Public,'' with regard to all forms used by the NASA in place of or as a 
supplement to the Standard Form 424 (SF 424) series.
    (b) Applicants shall use those forms and instructions prescribed by 
NASA in Sec. 1260.10.



1260.113  Debarment and suspension.

    NASA and recipients shall comply with the nonprocurement debarment 
and suspension rule, 14 CFR part 1265, ``Governmentwide Debarment and 
Suspension (Nonprocurement) and Governmentwide Requirements for Drug-
Free Workplace (Grants),'' implementing Executive Orders 12549 and 
12689, ``Debarment and Suspension.'' This rule restricts contracts with 
certain parties that are debarred, suspended or otherwise excluded from 
or ineligible for participation in Federal assistance programs or 
activities.



Sec. 1260.114  Special award conditions.

    If an applicant or recipient has a history of poor performance, is 
not financially stable, has a management system that does not meet the 
standards prescribed in this subpart, has not conformed to the terms and 
conditions of a previous award, or is not otherwise responsible, NASA 
may impose additional requirements as needed. Such applicant or 
recipient will be notified in writing as to the nature of the additional 
requirements, the reason why the additional requirements are being 
imposed, the nature of the corrective action needed, the time allowed 
for completing the corrective actions, and the method for requesting 
reconsideration of the additional requirements imposed. Any special 
conditions shall be promptly removed once the conditions that prompted 
them have been corrected.



Sec. 1260.115  Metric system of measurement.

    The Metric Conversion Act, as amended by the Omnibus Trade and 
Competitiveness Act (15 U.S.C. 205) declares that the metric system is 
the preferred measurement system for U.S. trade and commerce. The Act 
requires each Federal agency to establish a date or dates in 
consultation with the Secretary of Commerce, when the metric system of 
measurement will be used in the agency's procurements, grants, and other 
business-related activities. Metric implementation may take longer where 
the use of the system is initially impractical or likely to cause 
significant inefficiencies in the accomplishment of federally-funded 
activities. NASA follows the provisions of Executive Order 12770, 
``Metric Usage in Federal Government Programs.'' NASA's policy with 
respect to the metric measurement system is stated in NASA Policy 
Directive (NPD) 8010.2, Use of the Metric System of Measurement in NASA 
Programs.

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Sec. 1260.116  Resource Conservation and Recovery Act (RCRA).

    Under the RCRA (Pub. L. 94-580 codified at 42 U.S.C. 6962), any 
State agency or agency of a political subdivision of a State which is 
using appropriated Federal funds must comply with section 6002 of the 
RCRA (42 U.S.C. 6962). Section 6002 requires that preference be given in 
procurement programs to the purchase of specific products containing 
recycled materials identified in guidelines developed by the 
Environmental Protection Agency (EPA) (40 CFR parts 247 through 254). 
Accordingly, State and local institutions of higher education, 
hospitals, and non-profit organizations that receive direct Federal 
awards or other Federal funds shall give preference in their procurement 
programs funded with Federal funds to the purchase of recycled products 
pursuant to the EPA guidelines.



Sec. 1260.117  Certifications and representations.

    Unless prohibited by statute or codified regulation, NASA will allow 
recipients to submit certain certifications and representations required 
by statute, executive order, or regulation on an annual basis, if the 
recipients have ongoing and continuing relationships with the agency. 
Annual certifications and representations shall be signed by responsible 
officials with the authority to ensure recipients' compliance with the 
pertinent requirements.

                         Post-Award Requirements

                    Financial and Program Management



Sec. 1260.120  Purpose of financial and program management.

    Sections 1260.121 through 1260.128 prescribe standards for financial 
management systems, methods for making payments and rules for: 
satisfying cost sharing and matching requirements, accounting for 
program income, budget revision approvals, making audits, determining 
allowability of cost, and establishing fund availability.



Sec. 1260.121  Standards for financial management systems.

    (a) Recipients shall relate financial data to performance data and 
develop unit cost information whenever practical. For awards that 
support research, it should be noted that it is generally not 
appropriate to develop unit cost information.
    (b) Recipients' financial management systems shall provide for the 
following.
    (1) Accurate, current and complete disclosure of the financial 
results of each federally-sponsored project or program in accordance 
with the reporting requirements set forth in Sec. 1260.152. If NASA 
requires reporting on an accrual basis from a recipient that maintains 
its records on other than an accrual basis, the recipient shall not be 
required to establish an accrual accounting system. These recipients may 
develop such accrual data for its reports on the basis of an analysis of 
the documentation on hand.
    (2) Records that identify adequately the source and application of 
funds for federally-sponsored activities. These records shall contain 
information pertaining to Federal awards, authorizations, obligations, 
unobligated balances, assets, outlays, income and interest.
    (3) Effective control over and accountability for all funds, 
property and other assets. Recipients shall adequately safeguard all 
such assets and assure they are used solely for authorized purposes.
    (4) Comparison of outlays with budget amounts for each award. 
Whenever appropriate, financial information should be related to 
performance and unit cost data.
    (5) Written procedures to minimize the time elapsing between the 
transfer of funds to the recipient from the U.S. Treasury and the 
issuance or redemption of checks, warrants or payments by other means 
for program purposes by the recipient. To the extent that the provisions 
of the Cash Management Improvement Act (CMIA) (Pub. L. 101-453) govern, 
payment methods of State agencies, instrumentalities, and fiscal agents 
shall be consistent with CMIA Treasury-State Agreements or the CMIA 
default procedures codified at 31 CFR part 205, ``Withdrawal of Cash 
from the Treasury for Advances under Federal Grant and Other Programs.''
    (6) Written procedures for determining the reasonableness, 
allocability

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and allowability of costs in accordance with the provisions of the 
applicable Federal cost principles and the terms and conditions of the 
award.
    (7) Accounting records including cost accounting records that are 
supported by source documentation.
    (c) Where the Federal Government guarantees or insures the repayment 
of money borrowed by the recipient, NASA, at its discretion, may require 
adequate bonding and insurance if the bonding and insurance requirements 
of the recipient are not deemed adequate to protect the interest of the 
Federal Government.
    (d) NASA may require adequate fidelity bond coverage where the 
recipient lacks sufficient coverage to protect the Federal Government's 
interest.
    (e) Where bonds are required in the situations described in this 
section, the bonds shall be obtained from companies holding certificates 
of authority as acceptable sureties, as prescribed in 31 CFR part 223, 
``Surety Companies Doing Business with the United States.''



Sec. 1260.122  Payment.

    (a) Payment methods shall minimize the time elapsing between the 
transfer of funds from the United States Treasury and the issuance or 
redemption of checks, warrants, or payment by other means by the 
recipients. Payment methods of State agencies or instrumentalities shall 
be consistent with Treasury-State CMIA agreements or default procedures 
codified at 31 CFR part 205.
    (b)(1) Recipients are to be paid in advance, provided they maintain 
or demonstrate the willingness to maintain:
    (i) Written procedures that minimize the time elapsing between the 
transfer of funds and disbursement by the recipient; and
    (ii) Financial management systems that meet the standards for fund 
control and accountability as established in Sec. 1260.121.
    (2) Cash advances to a recipient organization shall be limited to 
the minimum amounts needed and be timed to be in accordance with the 
actual, immediate cash requirements of the recipient organization in 
carrying out the purpose of the approved program or project. The timing 
and amount of cash advances shall be as close as is administratively 
feasible to the actual disbursements by the recipient organization for 
direct program or project costs and the proportionate share of any 
allowable indirect costs.
    (c) Whenever possible, advances shall be consolidated to cover 
anticipated cash needs for all awards made by NASA to the recipient.
    (1) Advance payments will be made by electronic funds transfer.
    (2) Advance payment mechanisms are subject to 31 CFR part 205.
    (d) [Reserved. Not used by NASA.]
    (e) Reimbursement is the preferred method when the requirements in 
paragraph (b) of this section cannot be met. NASA may also use this 
method on any construction agreement, or if the major portion of the 
construction project is accomplished through private market financing or 
Federal loans, and the Federal assistance constitutes a minor portion of 
the project. When the reimbursement method is used, NASA shall make 
payment within 30 days after receipt of the billing, unless the billing 
is improper.
    (f) If a recipient cannot meet the criteria for advance payments and 
NASA has determined that reimbursement is not feasible because the 
recipient lacks sufficient working capital, NASA may provide cash on a 
working capital advance basis. Under this procedure, NASA shall advance 
cash to the recipient to cover its estimated disbursement needs for an 
initial period generally geared to the awardee's disbursing cycle. 
Thereafter, NASA shall reimburse the recipient for its actual cash 
disbursements. The working capital advance method of payment shall not 
be used for recipients unwilling or unable to provide timely advances to 
their subcontractor to meet the subcontractor's actual cash 
disbursements.
    (g) To the extent available, recipients shall disburse funds 
available from repayments to an interest earned on a revolving fund, 
program income, rebates, refunds, contract settlements, audit recoveries 
and interest earned on such funds before requesting additional cash 
payments.

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    (h) Unless otherwise required by statute, NASA will not withhold 
payments for proper charges made by recipients at any time during the 
project period unless the conditions in paragraphs (h)(1) or (2) of this 
section apply.
    (1) A recipient has failed to comply with the project objectives, 
the terms and conditions of the award, or NASA reporting requirements.
    (2) The recipient is delinquent in a debt to the United States as 
defined in OMB Circular A-129, ``Managing Federal Credit Programs.'' 
Under such conditions, NASA may, upon reasonable notice, inform the 
recipient that payments shall not be made for obligations incurred after 
a specified date until the conditions are corrected or the indebtedness 
to the Federal Government is liquidated.
    (i) Standards governing the use of banks and other institutions as 
depositories of funds advanced under awards are as follows.
    (1) Except for situations described in paragraph (i)(2) of this 
section, NASA shall not require separate depository accounts for funds 
provided to a recipient or establish any eligibility requirements for 
depositories for funds provided to a recipient. However, recipients must 
be able to account for the receipt, obligation and expenditure of funds.
    (2) Advances of Federal funds shall be deposited and maintained in 
insured accounts whenever possible.
    (j) Consistent with the national goal of expanding the opportunities 
for women-owned and minority-owned business enterprises, recipients 
shall be encouraged to use women-owned and minority-owned banks (a bank 
which is owned at least 50 percent by women or minority group members).
    (k) Recipients shall maintain advances of Federal funds in interest 
bearing accounts, unless the conditions in paragraphs (k)(1), (2), or 
(3) of this section apply.
    (1) The recipient receives less than $120,000 in Federal awards per 
year.
    (2) The best reasonably available interest bearing account would not 
be expected to earn interest in excess of $250 per year on Federal cash 
balances.
    (3) The depository would require an average or minimum balance so 
high that it would not be feasible within the expected Federal and non-
Federal cash resources.
    (l) Interest earned on Federal advances deposited in interest-
bearing accounts in excess of $250 per year shall be remitted annually 
to Department of Health and Human Services (DHHS), Payment Management 
System, Rockville, MD 20852. Interest amounts up to $250 per year may be 
retained by the recipient for administrative expense. In accordance with 
31 CFR part 206, interest should be remitted electronically through the 
Automated Clearing House (ACT) to DHHS. Recipients without this 
capability may make the remittance by check. In either case, the 
remittance should be payable to DHHS and should indicate the recipient's 
Entity Identification Number (EIN) and reason, i.e., ``Interest 
earned.''
    (m) Except as noted elsewhere in this subpart, only the following 
forms shall be authorized for the recipients in requesting advances and 
reimbursements. Federal agencies shall not require more than an original 
and two copies of these forms.
    (1) SF-270, Request for Advance or Reimbursement. [Reserved. Not 
used by NASA.]
    (2) SF-271, Outlay Report and Request for Reimbursement for 
Construction Programs. The SF-271 may be used for requesting 
reimbursement for NASA construction programs.



Sec. 1260.123  Cost sharing or matching.

    (a) All contributions, including cash and third party in-kind, shall 
be accepted as part of the recipient's cost sharing or matching when 
such contributions meet all of the following criteria.
    (1) Are verifiable from the recipient's records.
    (2) Are not included as contributions for any other federally-
assisted project or program.
    (3) Are necessary and reasonable for proper and efficient 
accomplishment of project or program objectives.
    (4) Are allowable under the applicable cost principles.
    (5) Are not paid by the Federal Government under another award, 
except

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where authorized by Federal statute to be used for cost sharing or 
matching.
    (6) Are provided for in the approved budget when required by NASA.
    (7) Conform to other provisions of this subpart, as applicable.
    (b) Unrecovered indirect costs may be included as part of cost 
sharing or matching only with the prior approval of the cognizant NASA 
grant officer.
    (c) Values for recipient contributions of services and property 
shall be established in accordance with the applicable cost principles. 
If NASA authorizes recipients to donate buildings or land for 
construction/facilities acquisition projects or long-term use, the value 
of the donated property for cost sharing or matching shall be the lesser 
of paragraph (c)(1) or (2) of this section.
    (1) The certified value of the remaining life of the property 
recorded in the recipient's accounting records at the time of donation.
    (2) The current fair market value. However, when there is sufficient 
justification, NASA may approve the use of the current fair market value 
of the donated property, even if it exceeds the certified value at the 
time of donation to the project.
    (d) Volunteer services furnished by professional and technical 
personnel, consultants, and other skilled and unskilled labor may be 
counted as cost sharing or matching if the service is an integral and 
necessary part of an approved project or program. Rates for volunteer 
services shall be consistent with those paid for similar work in the 
recipient's organization. In those instances in which the required 
skills are not found in the recipient organization, rates shall be 
consistent with those paid for similar work in the labor market in which 
the recipient competes for the kind of services involved. In either 
case, paid fringe benefits that are reasonable, allowable, and allocable 
may be included in the valuation.
    (e) When an employer other than the recipient furnishes the services 
of an employee, these services shall be valued at the employee's regular 
rate of pay (plus an amount of fringe benefits that are reasonable, 
allowable, and allocable, but exclusive of overhead costs), provided 
these services are in the same skill for which the employee is normally 
paid.
    (f) Donated supplies may include such items as expendable equipment, 
office supplies, laboratory supplies or workshop and classroom supplies. 
Value assessed to donated supplies included in the cost sharing or 
matching share shall be reasonable and shall not exceed the fair market 
value of the property at the time of the donation.
    (g) The method used for determining cost sharing or matching for 
donated equipment, buildings and land for which title passes to the 
recipient may differ according to the purpose of the award, if the 
conditions in paragraph (g)(1) or (2) of this section apply.
    (1) If the purpose of the award is to assist the recipient in the 
acquisition of equipment, buildings or land, the total value of the 
donated property may be claimed as cost sharing or matching.
    (2) If the purpose of the award is to support activities that 
require the use of equipment, buildings or land, normally only 
depreciation or use charges for equipment and buildings may be made. 
However, the full value of equipment or other capital assets and fair 
rental charges for land may be allowed, provided that NASA has approved 
the charges.
    (h) The value of donated property shall be determined in accordance 
with the usual accounting policies of the recipient, with the following 
qualifications:
    (1) The value of donated land and buildings shall not exceed its 
fair market value at the time of donation to the recipient as 
established by an independent appraiser (e.g., certified real property 
appraiser or General Services Administration representative) and 
certified by a responsible official of the recipient.
    (2) The value of donated equipment shall not exceed the fair market 
value of equipment of the same age and condition at the time of 
donation.
    (3) The value of donated space shall not exceed the fair rental 
value of comparable space as established by an independent appraisal of 
comparable space and facilities in a privately-owned building in the 
same locality.

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    (4) The value of loaned equipment shall not exceed its fair rental 
value.
    (5) The following requirements pertain to the recipient's supporting 
records for in-kind contributions from third parties.
    (i) Volunteer services shall be documented and, to the extent 
feasible, supported by the same methods used by the recipient for its 
own employees.
    (ii) The basis for determining the valuation for personal service, 
material, equipment, buildings and land shall be documented.



Sec. 1260.124  Program income.

    (a) The standards set forth in this section shall be used to account 
for program income related to projects financed in whole or in part with 
Federal funds.
    (b) Program income earned during the project period shall be 
retained by the recipient and added to funds committed to the project by 
NASA and the recipient, and used to further eligible project or program 
objectives, unless NASA indicates in the terms and conditions of the 
award another alternative to account for program income or the recipient 
is subject to special award conditions, as indicated in Sec. 1260.114.
    (c) Unless program regulations or the terms and conditions of the 
award provide otherwise, recipients shall have no obligation to the 
Federal Government regarding program income earned after the end of the 
project period.
    (d) Unless program regulations or the terms and conditions of the 
award provide otherwise, costs incident to the generation of program 
income may be deducted from gross income to determine program income, 
provided these costs have not been charged to the award.
    (e) Proceeds from the sale of property shall be handled in 
accordance with the requirements of the Property Standards (See 
Sec. Sec. 1260.130 through 1260.137).
    (f) Unless program regulations or the terms and condition of the 
award provide otherwise, recipients shall have no obligation to the 
Federal Government with respect to program income earned from license 
fees and royalties for copyrighted material, patents, patent 
applications, trademarks, and inventions produced under an award. 
However, Patent and Trademark Amendments (35 U.S.C. 18) apply to 
inventions made under an experimental, developmental, or research award.



Sec. 1260.125  Revision of budget and program plans.

    (a) The budget plan is the financial expression of the project or 
program as approved during the award process. It may include either the 
Federal and non-Federal share, or only the Federal share, depending upon 
requirements in the regulations in this subpart. It shall be related to 
performance for program evaluation purposes whenever appropriate.
    (b) Recipients are required to report deviations from budget and 
program plans, and request prior approvals for budget and program plan 
revisions, in accordance with this section.
    (c) For nonconstruction awards, recipients shall request prior 
approvals from NASA for the following program or budget related reasons, 
except the item in paragraph (c)(5) of this section, which is waived by 
NASA.
    (1) Change in the scope or the objective of the project or program 
(even if there is no associated budget revision requiring prior written 
approval).
    (2) Change in a key person specified in the application or award 
document.
    (3) The absence for more than three months, or a 25 percent 
reduction in time devoted to the project, by the approved project 
director or principal investigator.
    (4) The need for additional Federal funding.
    (5) The transfer of amounts budgeted for indirect costs to absorb 
increases in direct costs, or vice versa.

    Notice: NASA waives prior approval of such revisions.

    (6) The inclusion of costs that require prior approval in accordance 
with OMB Circular A-21, ``Cost Principles for Institutions of Higher 
Education''; OMB Circular A-122, ``Cost Principles for Non-Profit 
Organizations''; 45 CFR part 74 appendix E, ``Principles for Determining 
Costs Applicable to Research and Development under Grants and Contracts 
with Hospitals''; or 48 CFR

[[Page 322]]

part 31, ``Contract Cost Principles and Procedures,'' as applicable.
    (7) The transfer of funds allotted for training allowances (direct 
payment to trainees) to other categories of expense.
    (8) Unless described in the application and funded in the approved 
awards, the subaward, transfer or contracting out of any work under an 
award. This provision does not apply to the purchase of supplies, 
material, equipment or general support services.
    (d) No other prior approval requirements for specific items will be 
imposed unless a deviation has been approved by OMB.
    (e) NASA has determined to waive the following cost-related and 
administrative prior written approvals otherwise required by OMB 
Circulars A-21, A-110 and A-122 to allow recipients to do the following:
    (1) Incur pre-award costs 90 calendar days prior to award or more 
than 90 calendar days with the prior approval of NASA. All pre-award 
costs are incurred at the recipient's risk (i.e., NASA is under no 
obligation to reimburse such costs if for any reason the recipient does 
not receive an award or if the award is less than anticipated and 
inadequate to cover such costs).
    (2) Initiate a one-time extension of the expiration date of the 
award of up to 12 months unless one or more of the following conditions 
apply. For one-time extensions, the recipient must notify NASA in 
writing with the supporting reasons and revised expiration date at least 
10 days before the expiration date specified in the award. This one-time 
extension may not be exercised merely for the purpose of using 
unobligated balances.
    (i) The terms and conditions of award prohibit the extension.
    (ii) The extension requires additional Federal funds.
    (iii) The extension involves any change in the approved objectives 
or scope of the project.
    (3) Unless directed otherwise by the grant officer, carry forward 
unobligated balances to subsequent funding periods.
    (f) Program regulations may restrict the transfer of funds among 
direct cost categories or programs, functions and activities for awards 
in which NASA's share of the project exceeds $100,000 and the cumulative 
amount of such transfers exceeds or is expected to exceed 10 percent of 
the total budget as last approved by NASA. NASA will ensure that any 
such program regulation requirements are announced in program guidelines 
or are incorporated as special conditions in award documents. No program 
regulation shall permit a transfer that would cause any Federal 
appropriation or part thereof to be used for purposes other than those 
consistent with the original intent of the appropriation.
    (g) All other changes to nonconstruction budgets, except for the 
changes described in paragraph (j) of this section, do not require prior 
approval.
    (h) For construction awards, recipients shall request prior written 
approval promptly from NASA for budget revisions whenever the conditions 
in paragraphs (h) (1), (2) or (3) of this section apply.
    (1) The revision results from changes in the scope or the objective 
of the project or program.
    (2) The need arises for additional Federal funds to complete the 
project.
    (3) A revision is desired which involves specific costs for which 
prior written approval requirements may be imposed consistent with 
applicable OMB cost principles listed in Sec. 1260.127.
    (i) No other prior approval requirements for specific items will be 
imposed unless a deviation has been approved by OMB.
    (j) When NASA makes an award that provides support for both 
construction and nonconstruction work, NASA requires the recipient to 
request prior approval from NASA before making any fund or budget 
transfers between the two types of work supported.
    (k) For both construction and nonconstruction awards, NASA requires 
recipients to notify NASA in writing promptly whenever the amount of 
Federal authorized funds is expected to exceed the needs of the 
recipient for the project period by more than $5,000 or five percent of 
the Federal award, whichever is greater. This notification shall not be 
required if an application for additional funding is submitted for a 
continuation award.

[[Page 323]]

    (l) When requesting approval for budget revisions, recipients shall 
use the budget forms that were used in the application unless NASA 
indicates a letter of request suffices.
    (m) Within 30 calendar days from the date of receipt of the request 
for budget revisions, NASA shall review the request and notify the 
recipient whether the budget revisions have been approved. If the 
revision is still under consideration at the end of 30 calendar days, 
NASA shall inform the recipient in writing of the date when the 
recipient may expect the decision.



Sec. 1260.126  Non-Federal audits.

    (a) Recipients and subrecipients that are institutions of higher 
education or other non-profit organizations (including hospitals) shall 
be subject to the audit requirements contained in the Single Audit Act 
Amendments of 1966 (31 U.S.C. 7501-7507) and revised OMB Circular A-133, 
``Audits of States, Local Governments, and Other Non-Profit 
Institutions.''
    (b) State and local governments shall be subject to the audit 
requirements contained in the Single Audit Act Amendments of 1966 (31 
U.S.C. 7501-7507) and revised OMB Circular A-133, ``Audits of States, 
Local Governments, and Non-Profit Organizations.''
    (c) For-profit hospitals not covered by the audit provisions of 
revised OMB Circular A-133 shall be subject to the audit requirements of 
NASA.
    (d) Commercial organizations shall be subject to the audit 
requirements of NASA or the prime recipient as incorporated into the 
award document.



Sec. 1260.127  Allowable costs.

    For each kind of recipient, there is a set of Federal principles for 
determining allowable costs. Allowability of costs shall be determined 
in accordance with the cost principles applicable to the entity 
incurring the costs. Thus, allowability of costs incurred by State, 
local or federally-recognized Indian tribal governments is determined in 
accordance with the provisions of OMB Circular A-87, ``Cost Principles 
for State and Local Governments.'' The allowability of costs incurred by 
non-profit organizations is determined in accordance with the provisions 
of OMB Circular A-122, ``Cost Principles for Non-Profit Organizations.'' 
The allowability of costs incurred by institutions of higher education 
is determined in accordance with the provisions of OMB Circular A-21, 
``Cost Principles for Educational Institutions.'' The allowability of 
costs incurred by hospitals is determined in accordance with the 
provisions of appendix E of 45 CFR part 74, ``Principles for Determining 
Costs Applicable to Research and Development Under Grants and Contracts 
with Hospitals.'' The allowability of costs incurred by commercial 
organizations and those non-profit organizations listed in Attachment C 
to Circular A-122 is determined in accordance with the provisions of the 
Federal Acquisition Regulation (FAR) at 48 CFR part 31.



Sec. 1260.128  Period of availability of funds.

    Where a funding period is specified, a recipient may charge to the 
grant only allowable costs resulting from obligations incurred during 
the funding period and any pre-award costs authorized by NASA.

                           Property Standards



Sec. 1260.130  Purpose of property standards.

    Sections 1260.131 through 1260.137 set forth uniform standards 
governing management and disposition of property furnished by the 
Federal Government whose cost was charged to a project supported by a 
Federal award. Recipients shall observe these standards under awards and 
NASA will not impose additional requirements, unless specifically 
required by Federal statute. The recipient may use its own property 
management standards and procedures provided it observes the provisions 
of Sec. Sec. 1260.131 through 1260.137.



Sec. 1260.131  Insurance coverage.

    Recipients shall, at a minimum, provide the equivalent insurance 
coverage for real property and equipment acquired with Federal funds as 
provided for property owned by the recipient. Federally-owned property 
need not be insured unless required by the terms and conditions of the 
award.

[[Page 324]]



Sec. 1260.132  Real property.

    Unless otherwise provided by statute, the requirements concerning 
the use and disposition of real property acquired in whole or in part 
under awards are as follows:
    (a) Title to real property shall vest in the recipient subject to 
the condition that the recipient shall use the real property for the 
authorized purpose of the project as long as it is needed and shall not 
encumber the property without approval of NASA.
    (b) The recipient shall obtain written approval by NASA for the use 
of real property in other federally-sponsored projects when the 
recipient determines that the property is no longer needed for the 
purpose of the original project. Use in other projects shall be limited 
to those under federally-sponsored projects (i.e., awards) or programs 
that have purposes consistent with those authorized for support by NASA.
    (c) When the real property is no longer needed as provided in 
paragraphs (a) and (b) of this section, the recipient shall request 
disposition instructions from NASA or its successor Federal awarding 
agency. NASA shall observe one or more of the following disposition 
instructions.
    (1) The recipient may be permitted to retain title without further 
obligation to the Federal Government after it compensates the Federal 
Government for that percentage of the current fair market value of the 
property attributable to the Federal participation in the project.
    (2) The recipient may be directed to sell the property under 
guidelines provided by NASA and pay the Federal Government for that 
percentage of the current fair market value of the property attributable 
to the Federal participation in the project (after deducting actual and 
reasonable selling and fix-up expenses, if any, from the sales 
proceeds). When the recipient is authorized or required to sell the 
property, proper sales procedures shall be established that provide for 
competition to the extent practicable and result in the highest possible 
return.
    (3) The recipient may be directed to transfer title to the property 
to the Federal Government or to an eligible third party provided that, 
in such cases, the recipient shall be entitled to compensation for its 
attributable percentage of the current fair market value of the 
property.



Sec. 1260.133  Federally-owned and exempt property.

    (a) Federally-owned property. (1) Title to federally-owned property 
remains vested in the Federal Government. Recipients shall submit 
annually an inventory listing of federally-owned property in their 
custody to NASA. Upon completion of the award or when the property is no 
longer needed, the recipient shall report the property to NASA for 
further Federal agency utilization.
    (2) If NASA has no further need for the property, it shall be 
declared excess and reported to the General Services Administration, 
unless NASA has statutory authority to dispose of the property by 
alternative methods (e.g., the authority provided by the Federal 
Technology Transfer Act (15 U.S.C. 3710 (I)) to donate research 
equipment to educational and non-profit organizations in accordance with 
Executive Order 12821, ``Improving Mathematics and Science Education in 
Support of the National Education Goals.'') Appropriate instructions 
shall be issued to the recipient by NASA.
    (b) Exempt property. Under the authority of the Childs Act, 31 
U.S.C. 6301 to 6308, NASA has determined to vest title to property 
acquired with Federal funds in the recipient without further obligation 
to NASA, including reporting requirements.



Sec. 1260.134  Equipment.

    (a) For grants and cooperative agreements for the purpose of 
research, NASA's policy is to vest title to property acquired with 
Federal funds in the recipient without further obligation to NASA, 
including reporting requirements, as set forth at Sec. 1260.133(b). For 
grants and cooperative agreements for non-research purposes, and in the 
exceptional circumstance where a deviation is requested for a grant or 
cooperative agreement for research to not vest title in the recipient as 
exempt, equipment shall vest in the recipient subject to conditions of 
this section. These policies are not applicable to

[[Page 325]]

grants and cooperative agreements with commercial firms (see Sec. 
1260.74(b)(2) and Sec. 1274.401.)
    (b) The recipient shall not use equipment acquired with Federal 
funds to provide services to non-Federal outside organizations for a fee 
that is less than private companies charge for equivalent services, 
unless specifically authorized by Federal statute, for as long as the 
Federal Government retains an interest in the equipment.
    (c) The recipient shall use the equipment in the project or program 
for which it was acquired as long as needed, whether or not the project 
or program continues to be supported by Federal funds and shall not 
encumber the property without approval of NASA. When no longer needed 
for the original project or program, the recipient shall use the 
equipment in connection with its other federally-sponsored activities, 
in the following order of priority:
    (1) Activities sponsored by NASA, then
    (2) Activities sponsored by other Federal agencies.
    (d) During the time that equipment is used on the project or program 
for which it was acquired, the recipient shall make it available for use 
on other projects or programs if such other use will not interfere with 
the work on the project or program for which the equipment was 
originally acquired. First preference for such other use shall be given 
to other projects or programs sponsored by NASA; second preference shall 
be given to projects or programs sponsored by other Federal agencies. If 
the equipment is owned by the Federal Government, use on other 
activities not sponsored by the Federal Government shall be permissible 
if authorized by NASA. User charges shall be treated as program income.
    (e) When acquiring replacement equipment, the recipient may use the 
equipment to be replaced as trade-in or sell the equipment and use the 
proceeds to offset the costs of the replacement equipment subject to the 
approval of NASA.
    (f) The recipient's property management standards for equipment 
acquired with Federal funds and federally-owned equipment shall include 
all of the following:
    (1) Equipment records shall be maintained accurately and shall 
include the following information.
    (i) A description of the equipment.
    (ii) Manufacturer's serial number, model number, Federal stock 
number, national stock number, or other identification number.
    (iii) Source of the equipment, including the award number.
    (iv) Whether title vests in the recipient or the Federal Government.
    (v) Acquisition date (or date received, if the equipment was 
furnished by the Federal Government) and cost.
    (vi) Information from which one can calculate the percentage of 
Federal participation in the cost of the equipment (not applicable to 
equipment furnished by the Federal Government).
    (vii) Location and condition of the equipment and the date the 
information was reported.
    (viii) Unit acquisition cost.
    (ix) Ultimate disposition data, including date of disposal and sales 
price or the method used to determine current fair market value where a 
recipient compensates NASA for its share.
    (2) Equipment owned by the Federal Government shall be identified to 
indicate Federal ownership.
    (3) A physical inventory of equipment shall be taken and the results 
reconciled with the equipment records at least once every two years. Any 
differences between quantities determined by the physical inspection and 
those shown in the accounting records shall be investigated to determine 
the causes of the difference. The recipient shall, in connection with 
the inventory, verify the existence, current utilization, and continued 
need for the equipment.
    (4) A control system shall be in effect to insure adequate 
safeguards to prevent loss, damage, or theft of the equipment. Any loss, 
damage, or theft of equipment shall be investigated and fully 
documented; if the equipment was owned by the Federal Government, the 
recipient shall promptly notify NASA.
    (5) Adequate maintenance procedures shall be implemented to keep the 
equipment in good condition.
    (6) Where the recipient is authorized or required to sell the 
equipment, proper sales procedures shall be established

[[Page 326]]

which provide for competition to the extent practicable and result in 
the highest possible return.
    (g) When the recipient no longer needs the equipment, the equipment 
may be used for other activities in accordance with the following 
standards. For equipment with a current per unit fair market value of 
$5,000 or more, the recipient may retain the equipment for other uses 
provided that compensation is made to the original Federal awarding 
agency or its successor. The amount of compensation shall be computed by 
applying the percentage of Federal participation in the cost of the 
original project or program to the current fair market value of the 
equipment. If the recipient has no need for the equipment, the recipient 
shall request disposition instructions from NASA. NASA shall determine 
whether the equipment can be used to meet NASA`s requirements. If no 
requirement exists within NASA, the availability of the equipment shall 
be reported to the General Services Administration by NASA to determine 
whether a requirement for the equipment exists in other Federal 
agencies. NASA shall issue instructions to the recipient no later than 
120 calendar days after the recipient's request and the following 
procedures shall govern.
    (1) If so instructed or if disposition instructions are not issued 
within 120 calendar days after the recipient's request, the recipient 
shall sell the equipment and reimburse NASA an amount computed by 
applying to the sales proceeds the percentage of Federal participation 
in the cost of the original project or program. However, the recipient 
shall be permitted to deduct and retain from the Federal share $500 or 
ten percent of the proceeds, whichever is less, for the recipient's 
selling and handling expenses.
    (2) If the recipient is instructed to ship the equipment elsewhere, 
the recipient shall be reimbursed by the Federal Government by an amount 
which is computed by applying the percentage of the recipient's 
participation in the cost of the original project or program to the 
current fair market value of the equipment, plus any reasonable shipping 
or interim storage costs incurred.
    (3) If the recipient is instructed to otherwise dispose of the 
equipment, the recipient shall be reimbursed by NASA for such costs 
incurred in its disposition.
    (4) NASA may reserve the right to transfer the title to the Federal 
Government or to a third party named by NASA when such third party is 
otherwise eligible under existing statutes. Such transfer shall be 
subject to the following standards.
    (i) The equipment shall be appropriately identified in the award or 
otherwise made known to the recipient in writing.
    (ii) NASA shall issue disposition instructions within 120 calendar 
days after receipt of a final inventory. The final inventory shall list 
all equipment acquired with grant funds and federally-owned equipment. 
If NASA fails to issue disposition instructions within the 120 calendar 
day period, the recipient shall apply the standards of this section, as 
appropriate. When NASA exercises its right to take title, the equipment 
shall be subject to the provisions for federally-owned equipment.

[65 FR 62900, Oct. 19, 2000, as amended at 66 FR 54125, Oct. 26, 2001]



Sec. 1260.135  Supplies and other expendable property.

    (a) Title to supplies and other expendable property shall vest in 
the recipient upon acquisition. If there is a residual inventory of 
unused supplies exceeding $5,000 in total aggregate value upon 
termination or completion of the project or program and the supplies are 
not needed for any other federally-sponsored project or program, the 
recipient shall retain the supplies for use on non-Federal sponsored 
activities or sell them, but shall, in either case, compensate the 
Federal Government for its share. The amount of compensation shall be 
computed in the same manner as for equipment.
    (b) The recipient shall not use supplies acquired with Federal funds 
to provide services to non-Federal outside organizations for a fee that 
is less than private companies charge for equivalent services, unless 
specifically authorized by Federal statute as long as the Federal 
Government retains an interest in the supplies.

[[Page 327]]



Sec. 1260.136  Intangible property.

    (a) The recipient may assert copyright in any work that is 
copyrightable and was created, or for which copyright ownership was 
purchased, under an award. NASA is granted a royalty-free, nonexclusive 
and irrevocable right to reproduce, publish, prepare derivative works or 
otherwise use the work for Federal purposes, and to authorize others to 
do so.
    (b) Recipients are subject to applicable regulations governing 
patents and inventions, including government-wide regulations issued by 
the Department of Commerce at 37 CFR part 401, ``Rights to Inventions 
Made by Nonprofit Organizations and Small Business Firms Under 
Government Grants, Contracts and Cooperative Agreements.''
    (c) NASA has the right to:
    (1) Obtain, reproduce, publish, or otherwise use the data first 
produced under an award; and
    (2) Authorize others to receive, reproduce, publish, or otherwise 
use such data for Federal purposes.
    (d)(1) In addition, in response to a Freedom of Information Act 
(FOIA) request for research data relating to published research findings 
produced under an award that were used by the Federal Government in 
developing an agency action that has the force and effect of law, NASA 
shall request, and the recipient shall provide, within a reasonable 
time, the research data so that they can be made available to the public 
through the procedures established under the FOIA. If NASA obtains the 
research data solely in response a FOIA request, NASA may charge the 
requester a reasonable fee equaling the full incremental cost of 
obtaining the research data. This fee should reflect costs incurred by 
NASA, the recipient, and applicable subrecipients. This fee is in 
addition to any fees the agency may assess under the FOIA (5 U.S.C. 
552(a)(4)(A)).
    (2) The following definitions apply for purposes of this paragraph 
(d):
    (i) Research data is defined as the recorded factual material 
commonly accepted in the scientific community as necessary to validate 
research findings, but not any of the following: Preliminary analyses, 
drafts of scientific papers, plans for future research, peer reviews, or 
communications with colleagues. This ``recorded'' material excludes 
physical objects (e.g., laboratory samples). Research data does not 
include:
    (A) Trade secrets, commercial information, materials necessary to be 
held confidential by a researcher until they are published, or similar 
information which is protected under law; and
    (B) Personnel and medical information and similar information the 
disclosure of which would constitute a clearly unwarranted invasion of 
personal privacy, such as information that could be used to identify a 
particular person in a research study.
    (ii) Published is defined as either when:
    (A) Research findings are published in a peer-reviewed scientific or 
technical journal; or
    (B) A Federal agency publicly and officially cites the research 
findings in support of an agency action that has the force and effect of 
law.
    (iii) Used by the Federal Government in developing an agency action 
that has the force and effect of law is defined as when an agency 
publicly and officially cites the research findings in support of an 
agency action that has the force and effect of law.
    (e) Title to intangible property and debt instruments acquired under 
an award or subcontract vests upon acquisition in the recipient. The 
recipient shall use that property for the originally-authorized purpose, 
and the recipient shall not encumber the property without approval of 
NASA. When no longer needed for the originally authorized purpose, 
disposition of the intangible property shall occur in accordance with 
the provisions of Sec. 1260.134(g).
    (f) Due to the substantial involvement on the part of NASA under a 
cooperative agreement, intellectual property may be produced by Federal 
employees and NASA contractors tasked to perform NASA assigned 
activities. Title to intellectual property created under the cooperative 
agreement by NASA or its contractors will initially vest with the 
creating party. Certain rights may be exchanged with the recipient.

[[Page 328]]



Sec. 1260.137  Property trust relationship.

    Real property, equipment, intangible property and debt instruments 
that are acquired or improved with Federal funds shall be held in trust 
by the recipient as trustee for the beneficiaries of the project or 
program under which the property was acquired or improved. NASA may 
require recipients to record liens or other appropriate notices of 
record to indicate that personal or real property has been acquired or 
improved with Federal funds and that use and disposition conditions 
apply to the property.

                          Procurement Standards



Sec. 1260.140  Purpose of procurement standards.

    Sections 1260.141 through 1260.148 set forth standards for use by 
recipients in establishing procedures for the procurement of supplies 
and other expendable property, equipment, real property and other 
services with Federal funds. These standards are furnished to ensure 
that such materials and services are obtained in an effective manner and 
in compliance with the provisions of applicable Federal statutes and 
executive orders. No additional procurement standards or requirements 
shall be imposed by NASA upon recipients, unless specifically required 
by Federal statute or executive order or approved in accordance with the 
deviation procedures of Sec. 1260.6.



Sec. 1260.141  Recipient responsibilities.

    The standards contained in this section do not relieve the recipient 
of the contractual responsibilities arising under its contract(s). The 
recipient is the responsible authority, without recourse to NASA, 
regarding the settlement and satisfaction of all contractual and 
administrative issues arising out of procurements entered into in 
support of an award or other agreement. This includes disputes, claims, 
protests of award, source evaluation or other matters of a contractual 
nature. Matters concerning violation of statute are to be referred to 
such Federal, State or local authority as may have proper jurisdiction.



Sec. 1260.142  Codes of conduct.

    The recipient shall maintain written standards of conduct governing 
the performance of its employees engaged in the award and administration 
of contracts. No employee, officer, or agent shall participate in the 
selection, award, or administration of a contract supported by Federal 
funds if a real or apparent conflict of interest would be involved. Such 
a conflict would arise when the employee, officer, or agent, any member 
of his or her immediate family, his or her partner, or an organization 
which employs or is about to employ any of the parties indicated herein, 
has a financial or other interest in the firm selected for an award. The 
officers, employees, and agents of the recipient shall neither solicit 
nor accept gratuities, favors, or anything of monetary value from 
contractors, or parties to subagreements. However, recipients may set 
standards for situations in which the financial interest is not 
substantial or the gift is an unsolicited item of nominal value. The 
standards of conduct shall provide for disciplinary actions to be 
applied for violations of such standards by officers, employees, or 
agents of the recipient.



Sec. 1260.143  Competition.

    All procurement transactions shall be conducted in a manner to 
provide, to the maximum extent practical, open and free competition. The 
recipient shall be alert to organizational conflicts of interest as well 
as noncompetitive practices among contractors that may restrict or 
eliminate competition or otherwise restrain trade. In order to ensure 
objective contractor performance and eliminate unfair competitive 
advantage, contractors that develop or draft specifications, 
requirements, statements of work, invitations for bids and/or requests 
for proposals shall be excluded from competing for such procurements. 
Awards shall be made to the bidder or offeror whose bid or offer is 
responsive to the solicitation and is most advantageous to the 
recipient, price, quality and other factors considered. Solicitations 
shall clearly set forth all requirements that the bidder or offeror 
shall fulfill in order for the

[[Page 329]]

bid or offer to be evaluated by the recipient. Any and all bids or 
offers may be rejected when it is in the recipient's interest to do so.



Sec. 1260.144  Procurement procedures.

    (a) All recipients shall establish written procurement procedures. 
These procedures shall provide for, at a minimum, that the conditions in 
paragraphs (a)(1), (2) and (3) of this section apply.
    (1) Recipients avoid purchasing unnecessary items.
    (2) Where appropriate, an analysis is made of lease and purchase 
alternatives to determine which would be the most economical and 
practical procurement for the Federal Government.
    (3) Solicitations for goods and services provide for all of the 
following:
    (i) A clear and accurate description of the technical requirements 
for the material, product or service to be procured. In competitive 
procurements, such a description shall not contain features which unduly 
restrict competition.
    (ii) Requirements which the bidder/offeror must fulfill and all 
other factors to be used in evaluating bids or proposals.
    (iii) A description, whenever practicable, of technical requirements 
in terms of functions to be performed or performance required, including 
the range of acceptable characteristics or minimum acceptable standards.
    (iv) The specific features of ``brand name or equal'' descriptions 
that bidders are required to meet when such items are included in the 
solicitation.
    (v) The acceptance, to the extent practicable and economically 
feasible, of products and services dimensioned in the metric system of 
measurement.
    (vi) Preference, to the extent practicable and economically 
feasible, for products and services that conserve natural resources and 
protect the environment and are energy efficient.
    (b) Positive efforts shall be made by recipients to utilize small 
businesses, minority-owned firms, and women's business enterprises, 
whenever possible. Recipients of NASA awards shall take all of the 
following steps to further this goal.
    (1) Ensure that small businesses, minority-owned firms, and women's 
business enterprises are used to the fullest extent practicable.
    (2) Make information on forthcoming opportunities available and 
arrange time frames for purchases and contracts to encourage and 
facilitate participation by small businesses, minority-owned firms, and 
women's business enterprises.
    (3) Consider in the contract process whether firms competing for 
larger contracts intend to subcontract with small businesses, minority-
owned firms, and women's business enterprises.
    (4) Encourage contracting with consortiums of small businesses, 
minority-owned firms and women's business enterprises when a contract is 
too large for one of these firms to handle individually.
    (5) Use the services and assistance, as appropriate, of such 
organizations as the Small Business Administration and the Department of 
Commerce's Minority Business Development Agency in the solicitation and 
utilization of small businesses, minority-owned firms and women's 
business enterprises.
    (c) The type of procuring instruments used (e.g., fixed price 
contracts, cost reimbursable contracts, purchase orders, and incentive 
contracts) shall be determined by the recipient but shall be appropriate 
for the particular procurement and for promoting the best interest of 
the program or project involved. The ``cost-plus-a-percentage-of-cost'' 
or ``percentage of construction cost'' methods of contracting shall not 
be used.
    (d) Contracts shall be made only with responsible contractors who 
possess the potential ability to perform successfully under the terms 
and conditions of the proposed procurement. Consideration shall be given 
to such matters as contractor integrity, record of past performance, 
financial and technical resources or accessibility to other necessary 
resources. In certain circumstances, contracts with certain parties are 
restricted by 14 CFR part 1265, the implementation of Executive Orders 
12549 and 12689, ``Debarment and Suspension.''

[[Page 330]]

    (e) Recipients shall, on request, make available for NASA, pre-award 
review and procurement documents, such as request for proposals or 
invitations for bids, independent cost estimates, etc., when any of the 
following conditions apply.
    (1) A recipient's procurement procedures or operation fails to 
comply with the procurement standards in NASA's implementation of this 
subpart.
    (2) The procurement is expected to exceed the small purchase 
threshold and is to be awarded without competition or only one bid or 
offer is received in response to a solicitation.
    (3) The procurement, which is expected to exceed the small purchase 
threshold, specifies a ``brand name'' product.
    (4) The proposed award over the small purchase threshold is to be 
awarded to other than the apparent low bidder under a sealed bid 
procurement.
    (5) A proposed contract modification changes the scope of a contract 
or increases the contract amount by more than the amount of the small 
purchase threshold.



Sec. 1260.145  Cost and price analysis.

    Some form of cost or price analysis shall be made and documented in 
the procurement files in connection with every procurement action. Price 
analysis may be accomplished in various ways, including the comparison 
of price quotations submitted, market prices and similar indicia, 
together with discounts. Cost analysis is the review and evaluation of 
each element of cost to determine reasonableness, allocability and 
allowability.



Sec. 1260.146  Procurement records.

    Procurement records and files for purchases in excess of the small 
purchase threshold shall include the following at a minimum:
    (a) Basis for contractor selection,
    (b) Justification for lack of competition when competitive bids or 
offers are not obtained, and
    (c) Basis for award cost or price.



Sec. 1260.147  Contract administration.

    A system for contract administration shall be maintained to ensure 
contractor conformance with the terms, conditions and specifications of 
the contract and to ensure adequate and timely follow up of all 
purchases. Recipients shall evaluate contractor performance and 
document, as appropriate, whether contractors have met the terms, 
conditions and specifications of the contract.



Sec. 1260.148  Contract provisions.

    The recipient shall include, in addition to provisions to define a 
sound and complete agreement, the following provisions in all contracts. 
The following provisions shall also be applied to subcontracts.
    (a) Contracts in excess of the small purchase threshold shall 
contain contractual provisions or conditions that allow for 
administrative, contractual, or legal remedies in instances in which a 
contractor violates or breaches the contract terms, and provide for such 
remedial actions as may be appropriate.
    (b) All contracts in excess of the small purchase threshold shall 
contain suitable provisions for termination by the recipient, including 
the manner by which termination shall be effected and the basis for 
settlement. In addition, such contracts shall describe conditions under 
which the contract may be terminated for default as well as conditions 
where the contract may be terminated because of circumstances beyond the 
control of the contractor.
    (c) Except as otherwise required by statute, an award that requires 
the contracting (or subcontracting) for construction or facility 
improvements shall provide for the recipient to follow its own 
requirements relating to bid guarantees, performance bonds, and payment 
bonds unless the construction contract or subcontract exceeds $100,000. 
For those contracts or subcontracts exceeding $100,000, NASA may accept 
the bonding policy and requirements of the recipient, provided the NASA 
has made a determination that the Federal Government's interest is 
adequately protected. If such a determination has not been made, the 
minimum requirements shall be as follows.
    (1) A bid guarantee from each bidder equivalent to five percent of 
the bid

[[Page 331]]

price. The ``bid guarantee'' shall consist of a firm commitment such as 
a bid bond, certified check, or other negotiable instrument accompanying 
a bid as assurance that the bidder shall, upon acceptance of his bid, 
execute such contractual documents as may be required within the time 
specified.
    (2) A performance bond on the part of the contractor for 100 percent 
of the contract price. A ``performance bond'' is one executed in 
connection with a contract to secure fulfillment of all the contractor's 
obligations under such contract.
    (3) A payment bond on the part of the contractor for 100 percent of 
the contract price. A ``payment bond'' is one executed in connection 
with a contract to assure payment as required by statute of all persons 
supplying labor and material in the execution of the work provided for 
in the contract.
    (4) Where bonds are required in the situations described in this 
section, the bonds shall be obtained from companies holding certificates 
of authority as acceptable sureties pursuant to 31 CFR part 223, 
``Surety Companies Doing Business with the United States.''
    (d) All negotiated contracts (except those for less than the small 
purchase threshold) awarded by recipients shall include a provision to 
the effect that the recipient, NASA, the Comptroller General of the 
United States, or any of their duly authorized representatives, shall 
have access to any books, documents, papers and records of the 
contractor which are directly pertinent to a specific program for the 
purpose of making audits, examinations, excerpts and transcriptions.
    (e) All contracts, including small purchases, awarded by recipients 
and their contractors shall contain the procurement provisions of 
appendix A to this subpart, as applicable.

                           Reports and Records



Sec. 1260.150  Purpose of reports and records.

    Sections 1260.151 through 1260.153 set forth the procedures for 
monitoring and reporting on the recipient's financial and program 
performance and the necessary standard reporting forms. They also set 
forth record retention requirements.



Sec. 1260.151  Monitoring and reporting program performance.

    (a) Recipients are responsible for managing and monitoring each 
project, program, subcontract, function or activity supported by the 
award. Recipients shall monitor subcontracts to ensure subcontractors 
have met the audit requirements as delineated in Sec. 1260.126.
    (b) The terms and conditions of the award shall prescribe the 
frequency with which the performance reports shall be submitted. Except 
as provided in 1260.151(f), performance reports shall not be required 
more frequently than quarterly or, less frequently than annually. Annual 
reports shall be due 90 calendar days after the grant year; quarterly or 
semi-annual reports shall be due 30 days after the reporting period. 
NASA may require annual reports before the anniversary dates of multiple 
year awards in lieu of these requirements. The final performance reports 
are due 90 calendar days after the expiration or termination of the 
award.
    (c) If inappropriate, a final technical or performance report shall 
not be required after completion of the project.
    (d) When required, performance reports shall generally contain, for 
each award, brief information on each of the following.
    (1) A comparison of actual accomplishments with the goals and 
objectives established for the period, the findings of the investigator, 
or both. Whenever appropriate and the output of programs or projects can 
be readily quantified, such quantitative data should be related to cost 
data for computation of unit costs.
    (2) Reasons why established goals were not met, if appropriate.
    (3) Other pertinent information including, when appropriate, 
analysis and explanation of cost overruns or high unit costs.
    (e) Recipients shall not be required to submit more than the 
original and two copies of performance reports.
    (f) Recipients shall immediately notify NASA of developments that 
have a significant impact on the award-supported activities. Also, 
notification shall be given in the case of problems,

[[Page 332]]

delays, or adverse conditions which materially impair the ability to 
meet the objectives of the award. This notification shall include a 
statement of the action taken or contemplated, and any assistance needed 
to resolve the situation.
    (g) NASA may make site visits, as needed.
    (h) NASA shall comply with clearance requirements of 5 CFR part 1320 
when requesting performance data from recipients.



Sec. 1260.152  Financial reporting.

    (a) When funds are advanced to recipients, each recipient is 
required to submit the SF 272, Report of Federal Cash Transactions, and, 
when necessary, its continuation sheet, SF 272a. NASA uses this report 
to monitor cash advanced to the recipient and obtain disbursement 
information for each agreement with the recipient.
    (b) Recipients are required to submit the report electronically to 
the Department of Health and Human Services' Payment Management System 
(DHHS/PMS) within 15 working days following the end of each Federal 
fiscal quarter. Reports are required for each quarter whether or not 
advances have been made during that quarter.
    (c) Additionally, recipients shall submit a final SF 272 in paper 
form to the NASA Financial Management Office, and shall furnish a copy 
of the final SF 272 to the appropriate grant officer.

[65 FR 62900, Oct. 19, 2000, as amended at 66 FR 54125, Oct. 26, 2001; 
68 FR 50470, Aug. 21, 2003]



Sec. 1260.153  Retention and access requirements for records.

    (a) This section sets forth requirements for record retention and 
access to records for awards to recipients. NASA shall not impose any 
other record retention or access requirements upon recipients.
    (b) Financial records, supporting documents, statistical records, 
and all other records pertinent to an award shall be retained for a 
period of three years from the date of submission of the final 
expenditure report or, for awards that are renewed quarterly or 
annually, from the date of the submission of the quarterly or annual 
financial report, as authorized by NASA. The only exceptions are the 
following.
    (1) If any litigation, claim, or audit is started before the 
expiration of the three-year period, the records shall be retained until 
all litigation, claims or audit findings involving the records have been 
resolved and final action taken.
    (2) Records for real property and equipment acquired with Federal 
funds shall be retained for 3 years after final disposition.
    (3) When records are transferred to or maintained by NASA, the 3-
year retention requirement is not applicable to the recipient
    (4) Indirect cost rate proposals, cost allocations plans, etc. as 
specified in Sec. 1260.153(g).
    (c) NASA authorizes that copies of original records may be 
substituted for the original records.
    (d) NASA shall request transfer of certain records to its custody 
from recipients when it determines that the records possess long term 
retention value. However, in order to avoid duplicate record keeping, 
NASA may make arrangements for recipients to retain any records that are 
continuously needed for joint use.
    (e) NASA, the Inspector General, Comptroller General of the United 
States, or any of their duly authorized representatives, have the right 
of timely and unrestricted access to any books, documents, papers, or 
other records of recipients that are pertinent to the awards, in order 
to make audits, examinations, excerpts, transcripts and copies of such 
documents. This right also includes timely and reasonable access to a 
recipient's personnel for the purpose of interview and discussion 
related to such documents. The rights of access in this paragraph are 
not limited to the required retention period, but shall last as long as 
records are retained.
    (f) Unless required by statute, NASA shall place no restrictions on 
recipients that limit public access to the records of recipients that 
are pertinent to an award, except when NASA can demonstrate that such 
records shall be kept confidential and would have been exempted from 
disclosure pursuant to the Freedom of Information Act (5

[[Page 333]]

U.S.C. 552) if the records had belonged to NASA.
    (g) Indirect cost rate proposals, cost allocations plans, etc. 
Paragraphs (g)(1) and (g)(2) of this section apply to the following 
types of documents, and their supporting records: Indirect cost rate 
computations or proposals, cost allocation plans, and any similar 
accounting computations of the rate at which a particular group of costs 
is chargeable (such as computer usage chargeback rates or composite 
fringe benefit rates).
    (1) If submitted for negotiation. If the recipient submits to NASA 
or the subrecipient submits to the recipient the proposal, plan, or 
other computation to form the basis for negotiation of the rate, then 
the 3-year retention period for its supporting records starts on the 
date of such submission.
    (2) If not submitted for negotiation. If the recipient is not 
required to submit to NASA or the subrecipient is not required to submit 
to the recipient the proposal, plan, or other computation for 
negotiation purposes, then the 3-year retention period for the proposal, 
plan, or other computation and its supporting records starts at the end 
of the fiscal year (or other accounting period) covered by the proposal, 
plan, or other computation.

                       Termination and Enforcement



Sec. 1260.160  Purpose of termination and enforcement.

    Sections 1260.61 and 1260.62 set forth uniform suspension, 
termination and enforcement procedures.



Sec. 1260.161  Termination.

    (a) Awards may be terminated in whole or in part only if the 
conditions in paragraph (a)(1), (2) or (3) of this section apply.
    (1) By NASA, if a recipient materially fails to comply with the 
terms and conditions of an award.
    (2) By NASA with the consent of the recipient, in which case the two 
parties shall agree upon the termination conditions, including the 
effective date and, in the case of partial termination, the portion to 
be terminated.
    (3) By the recipient upon sending to NASA written notification 
setting forth the reasons for such termination, the effective date, and, 
in the case of partial termination, the portion to be terminated. 
However, if NASA determines in the case of partial termination that the 
reduced or modified portion of the grant will not accomplish the 
purposes for which the grant was made, it may terminate the grant in its 
entirety under either paragraphs (a)(1) or (2) of this section.
    (b) If costs are allowed under an award, the responsibilities of the 
recipient referred to in Sec. 1260.171(a), including those for property 
management as applicable, shall be considered in the termination of the 
award, and provision shall be made for continuing responsibilities of 
the recipient after termination, as appropriate.



Sec. 1260.162  Enforcement.

    (a) Remedies for noncompliance. If a recipient materially fails to 
comply with the terms and conditions of an award, whether stated in a 
Federal statute, regulation, assurance, application, or notice of award, 
NASA may, in addition to imposing any of the special conditions outlined 
in Sec. 1260.114, take one or more of the following actions, as 
appropriate in the circumstances.
    (1) Temporarily withhold cash payments pending correction of the 
deficiency by the recipient or more severe enforcement action by NASA.
    (2) Disallow (that is, deny both use of funds and any applicable 
matching credit for) all or part of the cost of the activity or action 
not in compliance.
    (3) Wholly or partly suspend or terminate the current award.
    (4) Withhold further awards.
    (5) Take other remedies that may be legally available.
    (b) Hearings and appeals. In taking an enforcement action, NASA 
shall provide the recipient an opportunity for hearing, appeal, or other 
administrative proceeding to which the recipient is entitled under any 
statute or regulation applicable to the action involved.
    (c) Effects of suspension and termination. Costs of a recipient 
resulting from obligations incurred by the recipient during a suspension 
or after termination of an award are not allowable unless NASA expressly 
authorizes

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them in the notice of suspension or termination or subsequently. Other 
recipient costs during suspension or after termination which are 
necessary and not reasonably avoidable are allowable if the conditions 
in paragraph (c)(1) and (2) of this section apply.
    (1) The costs result from obligations which were properly incurred 
by the recipient before the effective date of suspension or termination, 
are not in anticipation of it, and in the case of a termination, are 
noncancellable.
    (2) The costs would be allowable if the award were not suspended or 
expired normally at the end of the funding period in which the 
termination takes effect.
    (d) Relationship to debarment and suspension. The enforcement 
remedies identified in this section, including suspension and 
termination, do not preclude a recipient from being subject to debarment 
and suspension under Executive Orders 12549 and 12689 and 14 CFR part 
1265 (see Sec. 1260.113).

                      After-the-Award Requirements



Sec. 1260.170  Purpose.

    Sections 1260.171 through 1260.173 contain closeout procedures and 
other procedures for subsequent disallowances and adjustments.



Sec. 1260.171  Closeout procedures.

    (a) Recipients shall submit, within 90 calendar days after the date 
of completion of the award, all financial, performance, and other 
reports as required by the terms and conditions of the award. NASA may 
approve extensions when requested by the recipient.
    (b) Unless NASA authorizes an extension, a recipient shall liquidate 
all obligations incurred under the award not later than 90 calendar days 
after the funding period or the date of completion as specified in the 
terms and conditions of the award or in agency implementing 
instructions.
    (c) NASA shall make prompt payments to a recipient for allowable 
reimbursable costs under the award being closed out.
    (d) The recipient shall promptly refund any balances of unobligated 
cash that NASA has advanced or paid and that is not authorized to be 
retained by the recipient for use in other projects. OMB Circular A-129 
governs unreturned amounts that become delinquent debts.
    (e) When authorized by the terms and conditions of the award, NASA 
shall make a settlement for any upward or downward adjustments to the 
Federal share of costs after closeout reports are received.
    (f) The recipient shall account for any real and personal property 
acquired with Federal funds or received from the Federal Government in 
accordance with Sec. Sec. 1260.131 through 1260.137.
    (g) In the event a final audit has not been performed prior to the 
closeout of an award, NASA shall retain the right to recover an 
appropriate amount after fully considering the recommendations on 
disallowed costs resulting from the final audit.



Sec. 1260.172  Subsequent adjustments and continuing responsibilities.

    (a) The closeout of an award does not affect any of the following.
    (1) The right of NASA to disallow costs and recover funds on the 
basis of a later audit or other review.
    (2) The obligation of the recipient to return any funds due as a 
result of later refunds, corrections, or other transactions.
    (3) Audit requirements in Sec. 1260.126.
    (4) Property management requirements in Sec. Sec. 1260.131 through 
1260.137.
    (5) Records retention as required in Sec. 1260.153.
    (b) After closeout of an award, a relationship created under an 
award may be modified or ended in whole or in part with the consent of 
the NASA and the recipient, provided the responsibilities of the 
recipient referred to in Sec. 1260.173(a), including those for property 
management as applicable, are considered and provisions made for 
continuing responsibilities of the recipient, as appropriate.



Sec. 1260.173  Collection of amounts due.

    (a) Any funds paid to a recipient in excess of the amount to which 
the recipient is finally determined to be entitled under the terms and 
conditions of the award constitute a debt to the Federal Government. If 
not paid within a

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reasonable period after the demand for payment, NASA may reduce the debt 
by the provisions of paragraph (a)(1), (2) or (3) of this section
    (1) Making an administrative offset against other requests for 
reimbursements.
    (2) Withholding advance payments otherwise due to the recipient.
    (3) Taking other action permitted by statute.
    (b) Except as otherwise provided by law, NASA shall charge interest 
on an overdue debt in accordance with 4 CFR chapter II, ``Federal Claims 
Collection Standards.''

        Appendix A to Subpart B of Part 1260--Contract Provisions

    All contracts awarded by a recipient, including small purchases, 
shall contain the following provisions as applicable:
    1. Equal Employment Opportunity. All contracts shall contain a 
provision requiring compliance with Executive Order 11246, ``Equal 
Employment Opportunity,'' as amended by Executive Order 11375, 
``Amending Executive Order 11246 Relating to Equal Employment 
Opportunity,'' and as supplemented by regulations at 41 CFR part 60, 
``Office of Federal Contract Compliance Programs, Equal Employment 
Opportunity, Department of Labor.''
    2. Copeland ``Anti-Kickback'' Act (18 U.S.C. 874 and 40 U.S.C. 
276c). All contracts in excess of $2,000 for construction or repair 
awarded by recipients shall include a provision for compliance with the 
Copeland ``Anti-Kickback'' Act (18 U.S.C. 874), as supplemented by 
Department of Labor regulations (29 CFR part 3, ``Contractors and 
Subcontractors on Public Building or Public Work Financed in Whole or in 
Part by Loans or Grants from the United States''). The Act provides that 
each contractor shall be prohibited from inducing, by any means, any 
person employed in the construction, completion, or repair of public 
work, to give up any part of the compensation to which he is otherwise 
entitled. The recipient shall report all suspected or reported 
violations to NASA.
    3. Davis-Bacon Act, as amended (40 U.S.C. 276a to a-7). When 
required by Federal program legislation, all construction contracts 
awarded by the recipients of more than $2,000 shall include a provision 
for compliance with the Davis-Bacon Act (40 U.S.C. 276a to a-7) and as 
supplemented by Department of Labor regulations (29 CFR part 5, ``Labor 
Standards Provisions Applicable to Contracts Governing Federally 
Financed and Assisted Construction''). Under this Act, contractors shall 
be required to pay wages to laborers and mechanics at a rate not less 
than the minimum wages specified in a wage determination made by the 
Secretary of Labor. In addition, contractors shall be required to pay 
wages not less than once a week. The recipient shall place a copy of the 
current prevailing wage determination issued by the Department of Labor 
in each solicitation and the award of a contract shall be conditioned 
upon the acceptance of the wage determination. The recipient shall 
report all suspected or reported violations to the NASA.
    4. Contract Work Hours and Safety Standards Act (40 U.S.C. 327-333). 
Where applicable, all contracts awarded by recipients in excess of 
$2,000 for construction contracts and in excess of $2,500 for other 
contracts that involve the employment of mechanics or laborers shall 
include a provision for compliance with sections 102 and 107 of the 
Contract Work Hours and Safety Standards Act (40 U.S.C. 327-333), as 
supplemented by Department of Labor regulations (29 CFR part 5). Under 
subsection 102 of the Act, each contractor shall be required to compute 
the wages of every mechanic and laborer on the basis of a standard work 
week of 40 hours. Work in excess of the standard work week is 
permissible provided that the worker is compensated at a rate of not 
less than 1\1/2\ times the basic rate of pay for all hours worked in 
excess of 40 hours in the work week. Section 107 of the Act is 
applicable to construction work and provides that no laborer or mechanic 
shall be required to work in surroundings or under working conditions 
which are unsanitary, hazardous or dangerous. These requirements do not 
apply to the purchases of supplies or materials or articles ordinarily 
available on the open market, or contracts for transportation or 
transmission of intelligence.
    5. Rights to Inventions Made Under a Contract or Agreement. 
Contracts or agreements for the performance of experimental, 
developmental, or research work shall provide for the rights of the 
Federal Government and the recipient in any resulting invention in 
accordance with 37 CFR part 401, ``Rights to Inventions Made by 
Nonprofit Organizations and Small Business Firms Under Government 
Grants, Contracts and Cooperative Agreements,'' and any implementing 
regulations issued by the awarding agency.
    6. Clean Air Act (42 U.S.C. 7401 et seq.) and the Federal Water 
Pollution Control Act (33 U.S.C. 1251 et seq.), as amended. Contracts of 
amounts in excess of $100,000 shall contain a provision that requires 
the recipient to agree to comply with all applicable standards, orders 
or regulations issued pursuant to the Clean Air Act (42 U.S.C. 7401 et 
seq.) and the Federal Water Pollution Control Act as amended (33 U.S.C. 
1251 et seq.). Violations shall be reported to NASA and the Regional 
Office of the Environmental Protection Agency (EPA).

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    7. Byrd Anti-Lobbying Amendment (31 U.S.C. 1352). Contractors who 
apply or bid for an award of $100,000 or more shall file the required 
certification. Each tier certifies to the tier above that it will not 
and has not used Federal appropriated funds to pay any person or 
organization for influencing or attempting to influence an officer or 
employee of any agency, a member of Congress, officer or employee of 
Congress, or an employee of a member of Congress in connection with 
obtaining any Federal contract, grant or any other award covered by 31 
U.S.C. 1352. Each tier shall also disclose any lobbying with non-Federal 
funds that takes place in connection with obtaining any Federal award. 
Such disclosures are forwarded from tier to tier up to the recipient.
    8. Debarment and Suspension (Executive Orders 12549 and 12689). No 
contract shall be made to parties listed on the General Services 
Administration's List of Parties Excluded from Federal Procurement or 
Nonprocurement Programs in accordance with Executive Orders 12549 and 
12689, ``Debarment and Suspension.'' This list contains the names of 
parties debarred, suspended, or otherwise excluded by agencies, and 
contractors declared ineligible under statutory or regulatory authority 
other than Executive Order 12549. Contractors with awards that exceed 
the small purchase threshold shall provide the required certification 
regarding its exclusion status and that of its principal employees.



PART 1261--PROCESSING OF MONETARY CLAIMS (GENERAL)--Table of Contents




           Subpart 1261.1--Employees' Personal Property Claims

Sec.
1261.100 Scope of subpart.
1261.101 Claimants.
1261.102 Maximum amount.
1261.103 Time limitations.
1261.104 Allowable claims.
1261.105 Unallowable claims.
1261.106 Submission of claims.
1261.107 Evidence in support of claim.
1261.108 Recovery from carriers, insurers, and other third parties.
1261.109 Computation of allowance.
1261.110 Settlement of claims.

Subpart 1261.2 [Reserved]

 Subpart 1261.3--Claims Against NASA or Its Employees for Damage to or 
   Loss of Property or Personal Injury or Death--Accruing On or After 
                            January 18, 1967

1261.300 Scope of subpart.
1261.301 Authority.
1261.302 Claim.
1261.303 Claimant.
1261.304 Place of filing claim.
1261.305 Form of claim.
1261.306 Evidence and information required.
1261.307 Time limitations.
1261.308 NASA officials authorized to act upon claims.
1261.309 Action under the Federal Tort Claims Act.
1261.310 Investigation of claims.
1261.311 Claims requiring Department of Justice approval or 
          consultation.
1261.312 Action on approved claims.
1261.313 Required notification in the event of denial.
1261.314 [Reserved]
1261.315 Procedures for the handling of lawsuits against NASA employees 
          arising within the scope of their office or employment.
1261.316 Policy.
1261.317 Attorney-client privilege.

Subpart 1261.4--Collection of Civil Claims of the United States Arising 
      Out of the Activities of the National Aeronautics and Space 
                          Administration (NASA)

1261.400 Scope of subpart.
1261.401 Definitions.
1261.402 Delegation of authority.
1261.403 Consultation with appropriate officials; negotiation.
1261.404 Services of the Inspector General.
1261.405 Subdivision of claims not authorized; other administrative 
          proceedings.
1261.406 Aggressive collection action; documentation.
1261.407 Demand for payment; limitation periods.
1261.408 Use of consumer reporting agency.
1261.409 Contracting for collection services.
1261.410 Suspension or revocation of license or eligibility; liquidation 
          of collateral.
1261.411 Collection in installments.
1261.412 Interest, penalties, and administrative costs.
1261.413 Analysis of costs; automation; prevention of overpayments, 
          delinquencies, or defaults.
1261.414 Compromise of claims.
1261.415 Execution of releases.
1261.416 Suspending or terminating collection action.
1261.417 Referral to Department of Justice (DJ) or General Accounting 
          Office (GAO).

             Subpart 1261.5--Administrative Offset of Claims

1261.500 Scope of subpart.
1261.501 Definition.
1261.502 Notification procedures.
1261.503 Agency records inspection; hearing or review.
1261.504 Interagency requests.
1261.505 Multiple debts.

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1261.506 Limitation periods.
1261.507 Civil Service Retirement and Disability Fund.
1261.508 Offset against a judgment.

 Subpart 1261.6--Collection by Offset From Indebted Government Employees

1261.600 Purpose of subpart.
1261.601 Scope of subpart.
1261.602 Definitions.
1261.603 Procedures for salary offset.
1261.604 Nonwaiver of rights by involuntary setoff.
1261.605 Refunds.
1261.606 Salary offset request by a creditor agency other than NASA (the 
          current paying agency).
1261.607 Obtaining the services of a hearing official.

    Authority: Subparts 1261.4, 1261.5, and 1261.6 issued under 42 
U.S.C. 2473(c); 31 U.S.C. 3711 et seq.; 5 U.S.C. 5514; 4 CFR parts 101-
105; 5 CFR part 550 subpart K, Sec. Sec. 550.1101-550.1107.

    Source: 45 FR 48104, July 18, 1980, unless otherwise noted.



           Subpart 1261.1--Employees' Personal Property Claims

    Authority: 31 U.S.C. 2371, et seq.



Sec. 1261.100  Scope of subpart.

    This subpart prescribes regulations governing the settlement of 
claims against the National Aeronautics and Space Administration (NASA) 
for damage to, or loss of, personal property incident to service with 
NASA.



Sec. 1261.101  Claimants.

    (a) A claim for damage to, or loss of, personal property incident to 
service with NASA may be made only by:
    (1) An officer or employee of the National Aeronautics and Space 
Administration;
    (2) A member of the uniformed services (Army, Navy, Air Force, 
Marine Corps, Coast Guard, Coast and Geodetic Survey and Public Health 
Service) assigned to duty with or under the jurisdiction of NASA;
    (3) The authorized agent or legal representative of a person named 
in paragraph (a)(1) or (2) of this section; or
    (4) The survivors of a person named in paragraph (a)(1) or (2) of 
this section in the following order of precedence: Spouse; children, 
father or mother, or both; or brothers or sisters, or both. Claims by 
survivors may be allowed whether arising before, concurrently with, or 
after the decedent's death, if otherwise covered by this subpart.
    (b) Employees of contractors with the United States and employees of 
nonappropriated fund activities are not included within the meaning of 
paragraph (a)(1) or (2) of this section.
    (c) Claims may not be made by or for the benefit of a subrogee, 
assignee, conditional vendor, or other third party.



Sec. 1261.102  Maximum amount.

    From October 1, 1982, to October 30, 1988, the maximum amount that 
may be paid under the Military Personnel and Civilian Employees' Claim 
Act of 1964, as amended (31 U.S.C. 3721) is $25,000, and on or after 
October 31, 1988, the maximum amount is $40,000 (Pub. L. 100-565, 102 
Stat. 2833, October 31, 1988).

[54 FR 35456, Aug. 28, 1989]



Sec. 1261.103  Time limitations.

    (a) A claim may be allowed only if the claim is presented in writing 
within 2 years after it accrues. For the purposes of this subpart, a 
claim accrues at the time of the accident or incident causing the loss 
or damage, or at such time as the loss or damage is or should have been 
discovered by the claimant through the exercise of due diligence.
    (b) If a claim accrues in time of war or if an armed conflict 
intervenes within 2 years after it accrues, and if good cause is shown, 
the claim may be presented not later than 2 years after that cause 
ceases to exist, or 2 years after the war or armed conflict is 
terminated, whichever is earlier. The dates of beginning and ending of 
such an armed conflict are the dates established by concurrent 
resolution of the Congress or by a determination of the President.



Sec. 1261.104  Allowable claims.

    (a) A claim may be allowed only if:
    (1) The damage or loss was not caused wholly or partly by the 
negligent or wrongful act of the claimant, the claimant's agent, private 
employee, or family member (the standard to be applied is that of 
reasonable care under the circumstances);

[[Page 338]]

    (2) The possession of the property lost or damaged and the quantity 
is determined to have been reasonable, useful, or proper under the 
circumstances; and
    (3) The claim is substantiated by proper and convincing evidence.
    (b) Claims which are otherwise allowable under this subpart shall 
not be disallowed solely because the property was not in the possession 
of the claimant at the time of the damage or loss, or solely because the 
claimant was not the legal owner of the property for which the claim is 
made. For example, borrowed property may be the subject of a claim.
    (c) Subject to the conditions in paragraph (a) of this section and 
the other provisions of this subpart, any claim for damage to, or loss 
of, personal property incident to service with NASA may be considered 
and allowed. The following are examples of the principal types of claims 
which may be allowed, but these examples are not exclusive and other 
types of claims may be allowed, unless excluded by Sec. 1261.105.
    (1) Property loss or damage in quarters or other authorized places. 
Claims may be allowed for damage to, or loss of, property arising from 
fire, flood, hurricane, other natural disaster, theft, or other unusual 
occurrence, while such property is located at:
    (i) Quarters within the 50 States or the District of Columbia that 
were assigned to the claimant or provided by the United States;
    (ii) Quarters outside the 50 States and the District of Columbia 
that were occupied by the claimant, whether or not they were assigned or 
provided by the United States, except when the claimant is a civilian 
employee who is a local inhabitant; or
    (iii) Any warehouse, office working area, hospital, or other place 
authorized or apparently authorized for the reception or storage of 
property.
    (2) Transportation or travel losses. Claims may be allowed for 
damage to, or loss of, property incident to transportation or storage 
pursuant to orders, or in connection with travel under orders, including 
property in the custody of a carrier, an agent or agency of the 
Government, or the claimant.
    (3) House trailers. Claims may be allowed for damage to, or loss of, 
house trailers and their contents under the provisions of paragraph 
(c)(2) of this section.
    (4) Negligence of the Government. Claims may be allowed for damage 
to, or loss of, property caused by the negligence or wrongful act or 
omission of any employee of the Government while acting within the scope 
of office or employment.
    (5) Enemy action or public service. Claims may be allowed for damage 
to, or loss of, property as a direct consequence of:
    (i) Enemy action or threat of action or combat, guerrilla, 
brigandage, or other belligerent activity, or unjust confiscation by a 
foreign power or its nationals;
    (ii) Action by the claimant to quiet a civil disturbance or to 
alleviate a public disaster; or
    (iii) Efforts by the claimant to save human life or Government 
property.
    (6) Property used for benefit of the Government. Claims may be 
allowed for damage to, or loss of, property when used for the benefit of 
the Government at the request of, or with the knowledge and consent of, 
an authorized official.
    (7) Clothing and accessories. Claims may be allowed for damage to, 
or loss of, clothing or accessories customarily worn on the person, such 
as eyeglasses, hearing aids or dentures.



Sec. 1261.105  Unallowable claims.

    Claims are not allowable for the following:
    (a) Unassigned quarters in United States. Claims may not be allowed 
for property loss or damage in quarters occupied by the claimant within 
the 50 States or the District of Columbia that were not assigned to 
claimant or provided in kind by the United States.
    (b) Money or currency. Claims may not be allowed for loss of money 
or currency, except when lost incident to fire, flood, hurricane, other 
natural disaster, or by theft from quarters (as limited by paragraph 
(a)). Reimbursement for loss of money or currency is limited to an 
amount which is determined reasonable to have been in the

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claimant's possession at the time of the loss.
    (c) Government property. Claims may not be allowed for property 
owned by the United States, except that for which the claimant is 
financially responsible to any agency of the Government other than NASA.
    (d) Business property. Claims may not be allowed for property used 
in a private business enterprise.
    (e) Articles of extraordinary value. Claims may not be allowed for 
valuable articles, such as cameras, watches, jewelry, furs; or other 
articles of extraordinary value, when shipped with household goods or as 
unaccompanied baggage (shipment includes storage). This prohibition does 
not apply to articles in the personal custody of the claimant or 
articles properly checked: Provided, That reasonable protection or 
security measures have been taken by claimant.
    (f) Unserviceable property. Claims may not be allowed for worn-out 
unserviceable property.
    (g) Illegal possession. Claims may not be allowed for property 
acquired, possessed, or transported in violation of law or in violation 
of applicable regulations or directives.
    (h) Estimate fees. Claims may not include fees paid to obtain 
estimates or repair, except when it is clear that an estimate could not 
have been obtained without paying a fee.
    (i) Automobiles and other vehicles. Claims may not be allowed for 
damage to, or loss of, automobiles and other vehicles unless:
    (1) The vehicles were required to be used for official Government 
business (official Government business, as used here, does not include 
travel between quarters and place of duty, parking of vehicles incident 
to such travel, or use of vehicles for the convenience of the owner); or
    (2) Shipment of motor vehicles to, from, or between overseas areas 
was being furnished or provided by the Government; or
    (3) The damage or loss was caused by the negligent or wrongful act 
or omission of any employee of the Government acting within the scope of 
office or employment.



Sec. 1261.106  Submission of claims.

    All claims shall be submitted in duplicate to the Administrator or 
designee on NASA Form 1204, ``Employee's Claim for Damage to, or Loss 
of, Personal Property Incident to Service.''



Sec. 1261.107  Evidence in support of claim.

    (a) General. In addition to the information required on NASA Form 
1204, and any other evidence required by the Administrator or designee, 
the claimant will furnish the following evidence when relevant:
    (1) A corroborating statement from the claimant's supervisor or 
other person or persons having personal knowledge of the facts 
concerning the claim.
    (2) A statement of any property recovered or replaced in kind.
    (3) An itemized bill of repair for property which has been repaired, 
or one or more written estimates of the cost of repairs from competent 
persons if the property is repairable but has not been repaired.
    (b) Specific classes of claims. Claims of the following types shall 
also be accompanied with specific and detailed evidence as indicated:
    (1) Theft, burglary, etc. A statement describing in detail the 
location where the loss occurred and the facts and circumstances 
surrounding the loss, including supporting documentation, e.g., a police 
report.
    (2) Transportation losses. A copy of orders authorizing the travel, 
transportation or shipment, or a certificate explaining the absence of 
such orders and stating their substance; all bills of lading and 
inventories of property shipped; and a statement indicating the 
condition of the property when turned over to the carrier and when 
received from the carrier.



Sec. 1261.108  Recovery from carriers, insurers, and other third parties.

    (a) General. NASA is not an insurer and does not underwrite all 
personal property losses that an employee may sustain. Employees are 
encouraged to carry private insurance to the maximum extent practicable 
to avoid large losses or losses which may not be recoverable from NASA. 
The procedures set forth in this section are designed to

[[Page 340]]

enable the claimant to obtain the maximum amount of compensation for 
personal property loss or damage. Failure of the claimant to comply with 
these procedures may reduce or preclude payment of the claim.
    (b) Demand on carrier, contractor, warehouse owner/operator, or 
insurer. When it appears that property has been damaged or lost under 
circumstances in which a carrier, warehouse owner/operator, contractor 
or insurer may be responsible, the claimant shall make a written demand 
on such party, either before or after submitting a claim against NASA. 
The Administrator or designee, if requested, will assist in making 
demand on the third party. No such demand need be made if, in the 
opinion of the Administrator or designee, it would be impracticable or 
any recovery would be insignificant, or if circumstances preclude the 
claimant from making timely demand.
    (c) Action subsequent to demand. A copy of the demand and of any 
related correspondence shall be submitted to the Administrator or 
designee. If the carrier, insurer, or other third party offers a 
settlement which is less than the amount of the demand, the claimant 
shall consult with the Administrator or designee before accepting the 
amount offered. The claimant shall also notify the Administrator or 
designee promptly of any other action by a third party, including 
settlement, partial settlement, or denial of liability.
    (d) Application of recovery. When the amount recovered from a 
carrier, insurer, or other third party is greater than or equal to the 
claimant's total loss as determined under this subpart, no compensation 
is allowable under this subpart. When the amount recovered is less than 
such total loss, the allowable amount is determined by deducting the 
recovery from the amount of total loss subject to the maximum set forth 
in Sec. 1261.102.
    (e) Transfer of rights. The claimant shall assign to the United 
States, to the extent of any payment accepted on a claim, all rights, 
title, and interest in any claim he/she may have against any carrier, 
insurer, or other party arising out of the accident or incident on which 
the claim against the United States is based. The claimant shall also, 
upon request, furnish such evidence and other cooperation as may be 
required to enable the United States to enforce the claim. After payment 
on the claim by the United States, the claimant shall, upon receipt of 
any payment from a carrier, insurer, or other party, notify the 
Admininstrator or designee and pay the proceeds to the United States to 
the extent required under the provisions of paragraph (d).



Sec. 1261.109  Computation of allowance.

    (a) The amount allowed for damage to or loss of any item of property 
may not exceed the cost of the item (either the price paid in cash or 
property, or the value at the time of acquisition if not acquired by 
purchase or exchange). There will be no allowance for replacement cost 
or for appreciation in the value of the property. Subject to these 
limitations, the amount allowable is either:
    (1) The depreciated value, immediately prior to the loss or damage 
of property lost or damaged beyond economical repair, less any salvage 
value; or
    (2) The reasonable cost of repairs, when property is economically 
repairable: Provided, That the cost of repairs does not exceed the 
amount allowable under paragraph (a)(1) of this section.
    (b) Depreciation in value is determined by considering the type of 
article involved, its cost, its condition when damaged or lost, and the 
time elapsed between the date of acquisition and the date of damage or 
loss, with appropriate recognition of current replacement value.
    (c) Limitation on agent or attorney fees. No more than 10 per centum 
of the amount paid in settlement of each individual claim submitted and 
settled shall be paid or delivered to or received by an agent or 
attorney on account of services rendered in connection with that claim, 
any contract to the contrary notwithstanding (31 U.S.C. 243).



Sec. 1261.110  Settlement of claims.

    (a) Settlement officials. (1) Claims in the amount of $5,000 or more 
will be acted upon by the General Counsel. Claims less than $5,000 will 
be acted upon by the Chief Counsel of the NASA

[[Page 341]]

Field Installation where the employee was assigned at the time of the 
loss or damage or the Assistant General Counsel for Litigation for NASA 
Headquarters claims.
    (2) Claims arising for $5,000 or more shall be investigated by the 
Chief Counsel or Assistant General Counsel for Litigation, as 
appropriate, and a report and recommendation thereon shall be forwarded 
to the General Counsel.
    (b) Action by settlement official. (1) For each claim, the 
settlement official shall complete a report in duplicate on NASA Form 
1204 and retain a claim file consisting of the original claim, the 
report, and any other relevant evidence or documents.
    (2) When a claim is allowed in an amount acceptable to the claimant, 
the settlement official shall prepare a ``Voucher for Payment of 
Employees' Personal Property Claims'' (NASA Form 1220), have it properly 
executed by the claimant, and forward it with a copy of the approved 
claim (NASA Form 1204) to the appropriate NASA fiscal or financial 
management office for payment.
    (3) When a claim is disallowed or is partially allowed in an amount 
unacceptable to the claimant, the settlement official shall notify the 
claimant in writing of the action taken and the reasons therefor. If not 
satisfied with the action taken, the claimant may, within 60 days after 
receipt of such notice, request reconsideration of the claim and may 
submit any new evidence that he/she feels to be pertinent to the claim. 
If such a claim has been disallowed at the field installation level, the 
claimant may request reconsideration by the field installation, or by 
the General Counsel, or both.
    (c) Final and conclusive. The settlement of a claim under this 
subpart, whether by full or partial allowance or disallowance, is final 
and conclusive.

Subpart 1261.2 [Reserved]



 Subpart 1261.3--Claims Against NASA or Its Employees for Damage to or 
   Loss of Property or Personal Injury or Death--Accruing On or After 
                            January 18, 1967

    Authority: 28 U.S.C. 2671-2680, 42 U.S.C. 2473(c)(13), and 28 CFR 
part 14.



Sec. 1261.300  Scope of subpart.

    This subpart sets forth the procedures for:
    (a) The submission of, and action by NASA upon, claims against the 
United States arising out of the activities of NASA for damage to or 
loss of property or personal injury or death, and designates the NASA 
officials authorized to act upon such claims.
    (b) The handling of lawsuits against NASA employee(s) for damage to 
or loss of property or personal injury or death resulting from a NASA 
employee's activities within the scope of his/her office or employment.



Sec. 1261.301  Authority.

    (a) Under the provisions of the Federal Tort Claims Act, as amended 
(see 28 U.S.C. 2671-2680), and subject to its limitations, the 
Administrator or designee is authorized to consider, ascertain, adjust, 
determine, compromise, and settle any claim for money damages against 
the United States for injury or loss of property or personal injury or 
death caused by the negligent or wrongful act or omission of any NASA 
employee while acting within the scope of his/her office or employment, 
under circumstances where the United States, if a private person, would 
be liable to the claimant in accordance with the law of the place where 
the act or omission occurred. In exercising such authority, the 
Administrator or designee is required to act in accordance with 
regulations prescribed by the Attorney General (28 CFR part 14). An 
award, compromise, or settlement in excess of $25,000 may be effected 
only with the prior written

[[Page 342]]

approval of the Attorney General or designee.
    (b) Under sec. 203(c)(13)(A) of the National Aeronautics and Space 
Act of 1958, as amended, 42 U.S.C. 2473(c)(13)(A), NASA is authorized to 
consider, ascertain, adjust, determine, settle, and pay, on behalf of 
the United States, in full satisfaction thereof, any claim for $25,000 
or less against the United States for bodily injury, death or damage to 
or loss of real or personal property resulting from the conduct of 
NASA's functions as specified in 42 U.S.C. 2473(a). At the discretion of 
NASA, a claim may be settled and paid under this authority even though 
the United States could not be held legally liable to the claimant.
    (c) Under 42 U.S.C. 2473(c)(13)(B), if NASA considers that a claim 
in excess of $25,000 is meritorious and would otherwise be covered by 42 
U.S.C. 2473(c)(13)(A), NASA may report the facts and circumstances of 
the claim to the Congress for its consideration or to the Comptroller 
General as provided in the ``Supplemental Appropriations Act, 1978,'' 
Pub. L. 95-240 (92 Stat. 107), 31 U.S.C. 724a.
    (d) Under 28 U.S.C. 2679, the Attorney General of the United States 
shall defend any civil action or proceeding brought in any court against 
a Government employee for injury or loss of property or personal injury 
or death, resulting from the operation of a motor vehicle by the 
Government employee while acting within the scope of office or 
employment. In effect, this legislation is designed to protect an 
employee driving a motor vehicle on Government business by converting 
such a civil court action or proceeding against the employee into a 
claim against the United States: Provided, That the employee was acting 
within the scope of employment at the time of the accident. The remedy 
against the United States provided by 28 U.S.C. 2672 (administrative 
adjustment of claims) and 28 U.S.C. 1346(b) (civil action against the 
United States) then becomes the plaintiff's exclusive remedy.



Sec. 1261.302  Claim.

    Unless the context otherwise requires, claim means a claim for money 
damages against the United States arising out of the activities of NASA, 
for injury or loss of property, or personal injury or death. A claim 
``arises'' at the place where the injury, loss, or death occurs.



Sec. 1261.303  Claimant.

    (a) A claim for damage to or loss of property may be presented by 
the owner of the property, duly authorized agent or legal 
representative.
    (b) A claim for personal injury may be presented by the injured 
person, duly authorized agent, or legal representative.
    (c) A claim based on death may be presented by the executor(rix) or 
administrator(rix) of the decedent's estate, or by any other person 
legally entitled to assert such a claim in accordance with applicable 
State law.
    (d) A claim for loss wholly compensated by an insurer with the 
rights of a subrogee may be presented by the insurer. A claim for loss 
partially compensated by an insurer with the rights of a subrogee may be 
presented by the parties individually as their respective interests 
appear, or jointly.
    (e) A claim presented by an agent or legal representative shall be 
presented in the name of the claimant, be signed by the agent or legal 
representative, show the title or legal capacity of the person signing 
and be accompanied by evidence of the agent's or legal representative's 
authority to present a claim on behalf of the claimant as agent, 
executor(rix), administrator (rix), parent, guardian, or other 
representative.



Sec. 1261.304  Place of filing claim.

    A claim arising in the United States should be submitted to the 
Chief Counsel of the NASA Installation whose activities are believed to 
have given rise to the claimed injury, loss, or death. If the identity 
of such installation is not known, or if the claim arose in a foreign 
country, the claim should be submitted to the General Counsel, National 
Aeronautics and Space Administration, Washington, DC 20546.

[[Page 343]]



Sec. 1261.305  Form of claim.

    (a) The official designated in Sec. 1261.308 shall, prior to acting 
on a claim, require the claimant to submit a completed Standard Form 95-
-``Claim for Damage, Injury or Death.''
    (b) NASA installations will furnish copies of Standard Form 95 upon 
request.



Sec. 1261.306  Evidence and information required.

    (a) The circumstances alleged to have given rise to the claim, and 
the amount claimed, should, so far as possible, be substantiated by 
competent evidence. Supporting statements, estimates, and the like 
should, if possible, be obtained from disinterested parties. For 
specific guidance as to Federal Tort Claims Act claims, see Department 
of Justice regulations on ``Administrative Claims under Federal Tort 
Claims Act'' at 28 CFR part 14.
    (b) In addition to the evidence and information required under 
paragraph (a), any claimant shall be required to submit information as 
to the amount of money or other property received as damages or 
compensation, or which the claimant may be entitled to receive, by 
reason of the claimed injury, loss, or death from persons other than 
NASA or NASA employees. (Such persons include, but are not limited to, 
insurers, employers, and persons whose conduct was a cause of the 
accident or incident.)
    (c) Any document in other than the English language should be 
accompanied by an English translation.



Sec. 1261.307  Time limitations.

    (a) A claim may not be acted upon pursuant to the Federal Tort 
Claims Act unless it is presented to NASA within 2 years after it 
accrued.
    (b) A claim may not be acted upon pursuant to 42 U.S.C. 
2473(c)(13)(A) or (B) unless it is presented to NASA within 2 years 
after the occurrence of the accident or incident out of which the claim 
arose.
    (c) A claim shall be deemed to have been presented to NASA when NASA 
receives from a claimant or duly authorized agent or legal 
representative an executed Standard Form 95 or other written 
notification of an incident or accident, accompanied by a claim in a sum 
certain.



Sec. 1261.308  NASA officials authorized to act upon claims.

    (a) Claims in the amount of $10,000 or more will be acted upon as 
directed by the General Counsel;
    (b) Claims less than $10,000 will be acted upon by the Chief Counsel 
of the NASA Field Installation where the employee was assigned at the 
time of the loss or damage or the Assistant General Counsel for 
Litigation for NASA Headquarters claims.
    (c) Claims of $10,000 or more, pursuant either to the Federal Tort 
Claims Act, or 42 U.S.C. 2473(c)(13), shall be acted upon only with the 
prior approval of the General Counsel. Such claims shall be forwarded to 
the General Counsel for approval, if the Chief Counsel or the Assistant 
General Counsel for Litigation is of the opinion that the claim may be 
meritorious and otherwise suitable for settlement under any authority. A 
claim so forwarded should be accompanied by a report of the facts of the 
claim, based upon such investigation as may be appropriate, and a 
recommendation as to the action to be taken.
    (d) Claims acted upon by NASA officials pursuant to this section 
shall be acted upon pursuant to the Federal Tort Claims Act, or 42 
U.S.C. 2473(c)(13)(A) or (B), as the NASA official deems appropriate.



Sec. 1261.309  Action under the Federal Tort Claims Act.

    Where a claim is to be acted upon pursuant to the Federal Tort 
Claims Act, action shall be taken in accordance with 28 U.S.C. 2672, 
other provisions of the Federal Tort Claims Act as may be applicable 
(e.g., 28 U.S.C. 2680), and regulations prescribed by the Attorney 
General which appear at 28 CFR part 14.



Sec. 1261.310  Investigation of claims.

    The officials designated in Sec. 1261.308 shall conduct such 
investigation of a claim as deemed appropriate. The officials may 
request any NASA office or other Federal agency to assist in the 
investigation.

[[Page 344]]



Sec. 1261.311  Claims requiring Department of Justice approval or consultation.

    (a) When in the opinion of the NASA official designated in Sec. 
1261.308, Department of Justice approval or consultation may be 
required, pursuant to 28 CFR part 14, in connection with a claim being 
acted upon under the Federal Tort Claims Act, the following papers shall 
be forwarded to the General Counsel:
    (1) A short and concise statement of the facts of the claim.
    (2) Copies of all relevant portions of the claim file.
    (3) A statement of the recommendations or views of the forwarding 
official.
    (b) A claim forwarded to the General Counsel in accordance with 
paragraph (a) of this section, or upon which the General Counsel is 
acting pursuant to Sec. 1261.308(c), shall be referred to the 
Department of Justice when, in the opinion of the General Counsel, 
Department of Justice approval or consultation is required or may be 
appropriate.



Sec. 1261.312  Action on approved claims.

    (a) Upon settlement of a claim, the official designated in Sec. 
1261.308 will prepare and have executed by the claimant a Voucher for 
Payment of Tort Claims (NASA Form 616) if the claim has been acted upon 
pursuant to 42 U.S.C. 2473(c)(13), or a Voucher for Payment under 
Federal Tort Claims Act (Standard Form 1145) if the claim has been acted 
upon pursuant to the Federal Tort Claims Act. The form will then be 
referred to the cognizant NASA installation fiscal or financial 
management office for appropriate action.
    (b) When a claimant is represented by an attorney, both the claimant 
and attorney will be designated as ``payees'' on the voucher, and the 
check will be delivered to the attorney whose address shall appear on 
the voucher.
    (c) Acceptance by the claimant, agent, or legal representative, of 
any award, compromise, or settlement made pursuant to this subpart shall 
be final and conclusive on the claimant, agent or legal representative 
and any other person on whose behalf or for whose benefit the claim has 
been presented, and shall constitute a complete release of any claim 
against the United States and against any employee of the Government 
whose act or omission gave rise to the claim, by reason of the same 
subject matter.



Sec. 1261.313  Required notification in the event of denial.

    Final denial of a claim shall be in writing and shall be sent to the 
claimant, the attorney, or legal representative by certified or 
registered mail. The notification of final denial may include a 
statement of the reasons for the denial and shall include a statement 
that if the claimant is dissatisfied with NASA's action, the claimant 
may file suit in an appropriate U.S. District Court not later than 6 
months after the date of mailing the notification.



Sec. 1261.314  [Reserved]



Sec. 1261.315  Procedures for the handling of lawsuits against NASA employees arising within the scope of their office or employment.

    The following procedures shall be followed in the event that a civil 
action or proceeding is brought, in any court, against any employee of 
NASA (or against the estate) for injury or loss of property or personal 
injury or death, resulting from the NASA employee's activities while 
acting within the scope of office or employment:
    (a) After being served with process or pleadings in such an action 
or proceeding, the employee (or the executor(rix) or administrator(rix) 
of the estate) shall immediately deliver all such process and pleadings 
or an attested true copy thereof, together with a fully detailed report 
of the circumstances of the accident giving rise to the court action or 
proceeding, to the following officials:
    (1) The Assistant General Counsel for Litigation insofar as actions 
or proceedings against employees of NASA Headquarters are concerned; or
    (2) The Chief Counsel of the NASA Installation at which the employee 
is employed, insofar as actions against other than NASA Headquarters 
employees are concerned.
    (b) Upon receipt of such process and pleadings, the Assistant 
General Counsel for Litigation or the Chief Counsel

[[Page 345]]

of the NASA Installation receiving the same shall furnish to the U.S. 
Attorney for the district embracing the place where the action or 
proceeding is brought and, if appropriate, the Director, Torts Branch, 
Civil Division, Department of Justice, the following:
    (1) Copies of all such process and pleadings in the action or 
proceeding promptly upon receipt thereof; and
    (2) A report containing a statement of the circumstances of the 
incident giving rise to the action or proceeding, and all data bearing 
upon the question of whether the employee was acting within the scope of 
office or employment with NASA at the time of the incident, at the 
earliest possible date, or within such time as shall be fixed by the 
U.S. Attorney upon request.
    (c) The Assistant General Counsel for Litigation or a Chief Counsel 
acting pursuant to paragraph (b) of this section shall submit the 
following documents to the General Counsel, who is hereby designated to 
receive such documents on behalf of the Administrator:
    (1) Copies of all process and pleadings submitted to a U.S. Attorney 
in accordance with paragraph (b).
    (2) In addition, where the action or proceeding is for damages in 
excess of $25,000, or where (in the opinion of the Chief Counsel) such 
action or proceeding involves a new precedent, a new point of law, or a 
question of policy, copies of reports and all other papers submitted to 
the U.S. Attorney.



Sec. 1261.316  Policy.

    (a) The National Aeronautics and Space Administration may indemnify 
a present or former NASA employee, who is personally named as a 
defendant in any civil suit in state or Federal court, or in an 
arbitration proceeding or other proceeding seeking damages against that 
employee personally, for any verdict, judgment, appeal bond, or other 
monetary award which is rendered against such employee, provided that 
the conduct giving rise to the verdict, judgment, appeal bond, or award 
was taken within the scope of his or her employment and that such 
indemnification is in the interest of the National Aeronautics and Space 
Administration, as determined by the Administration or designee.
    (b) The National Aeronautics and Space Administration may settle or 
compromise a personal damage claim against a present or former NASA 
employee by the payment of available funds, at any time, provided the 
alleged conduct giving rise to the personal damage claim was taken 
within the employee's scope of employment and that such settlement or 
compromise is in the interest of the National Aeronautics and Space 
Administration, as determined by the Administrator or designee.
    (c) Absent exceptional circumstances as determined by the 
Administrator or designee, the agency will not entertain a request 
either to agree to indemnify or to settle a personal damage claim before 
entry of an adverse verdict, judgment, or award.
    (d) A present or past NASA employee may request indemnification to 
satisfy a verdict, judgment, or award entered against that employee. The 
employee shall submit a written request, with appropriate documentation 
including copies of the verdict, judgment, appeal bond, award, or 
settlement proposal to the General Counsel, who shall make a recommended 
disposition of the request. Where appropriate, the agency shall seek the 
views of the Department of Justice. The General Counsel shall forward 
the request, the accompanying documentation, and the General Counsel's 
recommendation to the Administrator for decision.
    (e) Any payment under this section either to indemnify a National 
Aeronautics and Space Administration employee or to settle a personal 
damage claim shall be contingent upon the availability of appropriated 
funds of the National Aeronautics and Space Administration.

[53 FR 27482, July 21, 1988]



Sec. 1261.317  Attorney-client privilege.

    (a) Attorneys employed by the National Aeronautics and Space 
Administration participate in the process utilized for the purpose of 
determining whether the agency should request the Department of Justice 
to provide representation to a present or former agency employee sued, 
subpoenaed, or charged in his/her individual capacity,

[[Page 346]]

and attorneys employed by the National Aeronautics and Space 
Administration provide assistance in obtaining representation of such an 
agency employee. In these roles, agency attorneys undertake a full and 
traditional attorney-client relationship with the employee with respect 
to application of the attorney-client privilege. If representation is 
authorized, National Aeronautics and Space Administration attorneys who 
assist in the representation of a present or former employee also 
undertake a full and traditional attorney-client relationship with that 
employee with respect to the attorney-client privilege.
    (b) Any adverse information communicated by the client-employee to 
an agency attorney during the course of such attorney-client 
relationship shall not be disclosed to anyone, either inside or outside 
the National Aeronautics and Space Administration, other than attorneys 
resonsible for representation of the employee, unless such disclosure is 
authorized by the employee. Such adverse information shall continue to 
be fully protected whether or not representation is provided and even 
though representation may be denied or discontinued.

[53 FR 27483, July 21, 1988]



Subpart 1261.4--Collection of Civil Claims of the United States Arising 
      Out of the Activities of the National Aeronautics and Space 
                          Administration (NASA)

    Source: 52 FR 19487, May 26, 1987, unless otherwise noted.



Sec. 1261.400  Scope of subpart.

    (a) These regulations do the following:
    (1) Prescribe standards for the administrative collection, 
compromise, suspension or termination of collection, and referral to the 
General Accounting Office (GAO), and/or to the Department of Justice 
(DJ) for litigation, of civil claims as defined by 31 U.S.C. 3701(b), 
arising out of the activities of NASA;
    (2) Designate the responsible NASA officials authorized to effect 
actions hereunder; and
    (3) Require compliance with the GAO/DJ joint regulations at 4 CFR 
parts 101 through 105 and the Office of Personnel Management (OPM) 
regulations at 5 CFR part 550, subpart K.
    (b) Failure to comply with any provision of the GAO/DJ or OPM 
regulations shall not be available as a defense to any debtor (4 CFR 
101.8).
    (c) These regulations do not include any claim based in whole or in 
part on violation of the anti-trust laws; any claim as to which there is 
an indication of fraud, the presentation of a false claim, or 
misrepresentation on the part of the debtor or any party having an 
interest in the claim; tax claims; or Federal interagency claims (4 CFR 
101.3).



Sec. 1261.401  Definitions.

    (a) Claim and debt. The terms denote a civil claim arising from the 
activities of NASA for an amount of money, or return or value of 
property (see 4 CFR 101.5), owing to the United States from any person, 
organization, or entity, except another Federal agency. The words claim 
and debt have been used interchangeably and are considered synonymous.
    (b) Delinquent debt. The debt is delinquent if it has not been paid 
by the date specified in the initial written notification (e.g., Sec. 
1261.407) or applicable contractual agreement, unless other acceptable 
(to NASA) payment arrangements have been made by that date, or if, at 
any time thereafter, the debtor fails to satisfy an obligation under the 
payment agreement.
    (c) Referral for litigation. Referral through the NASA 
installation's legal counsel to the Department of Justice (Main Justice 
or the United States Attorney, as appropriate) for legal proceedings.



Sec. 1261.402  Delegation of authority.

    The following NASA officials are delegated authority, as qualified 
by Sec. 1261.403, to take such action as is authorized by these 
regulations to collect, compromise, suspend/terminate collection, and 
upon consultation with and through legal counsel, to refer the claim (as 
applicable) to the GAO or Department of Justice:

[[Page 347]]

    (a) For field installations, with regard to subpart 1261.4 and 
subpart 1261.5: The Director of the Installation or a designee who 
reports directly to the Installation Director. A copy of such 
designation, if any, shall be sent to the Director, Financial Management 
Division, NASA Headquarters.
    (b) For Headquarters, with regard to subpart 1261.4 and subpart 
1261.5: The Associate Administrator for Management or a designee who 
reports directly to the Associate Administrator for Management. A copy 
of such designation, if any, shall be sent to the Director, Financial 
Management Division, NASA Headquarters.
    (c) With respect to the analysis required by Sec. 1261.413: The 
NASA Comptroller or designee.
    (d) NASA wide, with regard to subpart 1261.6: The NASA Comptroller 
or designee.
    (e) NASA wide, for complying with pertinent provisions under these 
regulations for agency hearing or review (see Sec. Sec. 1261.408(b), 
1261.503, and 1261.603(c)): The NASA General Counsel or designee.



Sec. 1261.403  Consultation with appropriate officials; negotiation.

    (a) The authority pursuant to Sec. 1261.402 to determine to forego 
collection of interest, to accept payment of a claim in installments, 
or, as to claims which do not exceed $20,000, exclusive of interest and 
related charges, to compromise a claim or to refrain from doing so, or 
to refrain from, suspend or terminate collection action, shall be 
exercised only after consultation with legal counsel for the particular 
installation and the following NASA officials or designees, who may also 
be requested to negotiate the appropriate agreements or arrangements 
with the debtor:
    (1) With respect to claims against contractors or grantees arising 
in connection with contracts or grants--the contracting officer and the 
financial management officer of the installation concerned.
    (2) With respect to claims against commercial carriers for loss of 
or damage to NASA freight shipment--the cognizant transportation 
officers or the official who determined the amount of the claim, as 
appropriate, and the financial management officers of the installation 
concerned.
    (3) With respect to claims against employees of NASA incident to 
their employment--the personnel officer and the financial management 
officer of the installation concerned.
    (b) The appropriate counsel's office shall review and concur in the 
following:
    (1) All communications to and agreements with debtors relating to 
claims collection.
    (2) All determinations to compromise a claim, or to suspend or 
terminate collection action.
    (3) All referrals of claims, other than referrals to the Department 
of Justice pursuant to Sec. 1261.404(b)(1).
    (4) All documents releasing debtors from liability to the United 
States.
    (5) All other actions relating to the collection of a claim which in 
the opinion of the official designated in or pursuant to Sec. 1261.402 
may affect the rights of the United States.



Sec. 1261.404  Services of the Inspector General.

    (a) At the request of an official designated in or pursuant to Sec. 
1261.402, the Office of the Inspector General will, where practicable, 
conduct such investigations as may assist in the collection, compromise, 
or referral of claims of the United States, including investigations to 
determine the location and financial resources of the debtors.
    (b) Any claim which, in the opinion of an official designated in or 
pursuant to Sec. 1261.402 or Sec. 1261.403, may indicate fraud, 
presentation of a false claim, or misrepresentation, on the part of the 
debtor or any other party having an interest in the claim, shall be 
referred by the designated official to the Inspector General (IG), NASA 
Headquarters, or to the nearest office of the NASA IG. After an 
investigation as may be appropriate, the IG shall:
    (1) Notice the official, from whom the claim was received, of the 
findings and refer the claim to the Department of Justice in accordance 
with the provisions of 4 CFR 101.3; or

[[Page 348]]

    (2) If it were found that there is no such indication of fraud, the 
presentation of a false claim, or misrepresentation, return the claim to 
the official from whom it was received.



Sec. 1261.405  Subdivision of claims not authorized; other administrative proceedings.

    (a) Subdivision of claims. Claims may not be subdivided to avoid the 
$20,000 ceiling, exclusive of interest, penalties, and administrative 
costs, for purposes of compromise (Sec. 1261.414) or suspension or 
termination of collection (Sec. 1261.416). The debtor's liability 
arising from a particular transaction or contract shall be considered a 
single claim (4 CFR 101.6).
    (b) Required administrative proceedings. Nothing contained in these 
regulations is intended to require NASA to omit, foreclose, or duplicate 
administrative proceedings required by contract or other applicable laws 
and implementing regulations (4 CFR 101.7).



Sec. 1261.406  Aggressive collection action; documentation.

    (a) NASA shall take aggressive action, on a timely basis with 
effective followup, to collect all claims of the United States for money 
or property arising out of NASA activities, and to cooperate with the 
other Federal agencies in debt collection activities.
    (b) All administrative collection action shall be documented and the 
bases for compromise, or for termination or suspension of collection 
action, should be set out in detail. Such documentation, including the 
Claims Collection Litigation Report under Sec. 1261.417(e), should be 
retained in the appropriate claims file.



Sec. 1261.407  Demand for payment; limitation periods.

    (a) Appropriate written demands shall be made promptly upon a debtor 
of the United States in terms which inform the debtor of the 
consequences of failure to cooperate. A total of three progressively 
stronger written demands at not more than 30-day intervals will normally 
be made unless a response to the first or second demand indicates that a 
further demand would be futile and the debtor's response does not 
require rebuttal. In determining the timing of demand letters, NASA will 
give due regard to the need to act promptly so that, as a general rule, 
if necessary to refer the debt to the Department of Justice for 
litigation, such referral can be made within one year of the agency's 
final determination of the fact and the amount of the debt. When 
necessary to protect the Government's interests (for example, to prevent 
the statute of limitations, 28 U.S.C. 2415, from expiring), written 
demand may be preceded by other appropriate actions, including immediate 
referral for litigation.
    (b) The initial demand letter should inform the debtor of:
    (1) The basis for the indebtedness and whatever rights the debtor 
may have to seek review within the agency;
    (2) The applicable standards for assessing interest, penalties, and 
administrative costs (Sec. 1261.412); and
    (3) The date by which payment is to be made, which normally should 
be not more than 30 days from the date that the initial demand letter 
was mailed or hand delivered. The responsible official should exercise 
care to ensure that demand letters are mailed or hand delivered on the 
same day that they are actually dated. Apart from these requirements, 
there is no prescribed format for demand letters. However, as 
appropriate to the circumstances, the responsible official may consider 
including, either in the initial demand letter or in subsequent letters, 
such items the NASA's willingness to discuss alternative methods of 
payment, or intentions with respect to referral of the debt to the 
Department of Justice for litigation.
    (c) NASA should respond promptly to communications from the debtor, 
within 30 days whenever feasible, and should advise debtors who dispute 
the debt to furnish available evidence to support their contentions.
    (d) If either prior to the initiation of, any time during, or after 
completion of the demand cycle, a determination to pursue offset is 
made, then the procedures specified in subparts 1261.5 and

[[Page 349]]

1261.6, as applicable, should be followed. The availability of funds for 
offset and NASA's determination to pursue it release the agency from the 
necessity of further compliance with paragraphs (a), (b), and (c) of 
this section. If the agency has not already sent the first demand 
letter, the agency's written notification of its intent to offset must 
give the debtor the opportunity to make voluntary payment, a requirement 
which will be satisfied by compliance with the notice requirements of 
Sec. 1261.502 or Sec. 1261.603(a), as applicable.
    (e) NASA should undertake personal interviews with its debtors 
whenever this is feasible, having regard for the amounts involved and 
the proximity of agency representatives to such debtors; and may attempt 
to effect compromise of the claim in accordance with Sec. 1261.414.
    (f) When a debtor is employed by the Federal government or is a 
member of the military establishment or the Coast Guard, and collection 
by offset cannot be accomplished in accordance with subpart 1261.6, the 
employing agency will be contacted for the purpose of arranging with the 
debtor for payment of the indebtedness by allotment or otherwise in 
accordance with section 206 of Executive Order 11222, May 8, 1965, 30 FR 
6469, which provides that: ``An employee is expected to meet all just 
financial obligations, especially those--such as Federal, State, or 
local taxes--which are imposed by law'' (4 CFR 102.81).



Sec. 1261.408  Use of consumer reporting agency.

    (a) The term consumer reporting agency has the meaning provided in 
the Federal Claims Collection Act of 1966, as amended (31 U.S.C. 
3701(a)(3)):
    (1) A consumer reporting agency as that term is defined in section 
603(f) of the Fair Credit Reporting Act (15 U.S.C. 1681a(f); or
    (2) A person that, for money or on a cooperative basis, regularly--
    (i) Gets information on consumers to give the information to a 
consumer reporting agency; or
    (ii) Serves as a marketing agent under an arrangement allowing a 
third party to get the information from a consumer reporting agency.
    (b) NASA Headquarters Financial Management Division, shall be the 
focal contact between NASA and consumer reporting agencies. The 
following procedures shall apply when such agencies are employed by 
NASA:
    (1) After the appropriate notice pursuant to 5 U.S.C. 552a(e)(4) has 
been published, NASA may disclose, in accordance with 5 U.S.C. 
552a(b)(12), information about a debtor to a consumer reporting agency. 
Such information may include:
    (i) That a claim has been determined to be valid and is overdue 
(including violation by debtor of a repayment plan or other claim 
settlement agreement);
    (ii) The name, address, taxpayer identification number, and any 
other information necessary to establish the identity of the individual 
responsible for the claim;
    (iii) Amount, status, and history of the claim;
    (iv) Program or pertinent activity under which the claim arose.
    (2) Before disclosing the information specified in paragraph (b)(1) 
of this section, NASA shall comply with 31 U.S.C. 3711(f) by:
    (i) Taking reasonable action to locate the individual if a current 
address is not available;
    (ii) If a current address is available, noticing the individual by 
certified mail, return receipt requested, that: The designated NASA 
official has reviewed the claim and determined that it is valid and 
overdue; within not less than 60 days after sending this notice, NASA 
intends to disclose to a consumer reporting agency the specific 
information to be disclosed under paragraph (b)(1) of this section; the 
individual may request a complete explanation of the claim, dispute the 
information in the records of NASA about the claim, and file for an 
administrative review or repeal of the claim or for reconsideration of 
the initial decision on the claim.
    (3) If an administrative review or reconsideration is requested, the 
responsible official or designee shall refer the request to the 
appropriate NASA legal

[[Page 350]]

counsel for an impartial review and determination by counsel or designee 
based on the entire written record. If the reviewer cannot resolve the 
question of indebtedness based upon the available documentary evidence, 
verified written statements by the debtor or the responsible official 
may be requested on any pertinent matter not addressed by the available 
record.
    (c) If the information is to be submitted to a consumer reporting 
agency, the responsible official shall obtain a verified statement from 
such agency which gives satisfactory assurances that the particular 
agency is complying with all laws of the United States related to 
providing consumer credit information; and thereafter ensure that the 
consumer reporting agency is promptly informed of any substantial change 
in the condition or amount of the claim, or, on request of such agency, 
promptly verify or correct information about the claim.



Sec. 1261.409  Contracting for collection services.

    (a) When NASA determines that there is a need to contract for 
collection services, the following conditions must attach:
    (1) The authority to resolve disputes, compromise claims, suspend or 
terminate collection action, and refer the matter for litigation must be 
retained by NASA.
    (2) The contractor shall be subject to the Privacy Act of 1974, as 
amended, to the extent specified in 5 U.S.C. 552a(m), and to applicable 
Federal and State laws and regulations pertaining to debt collection 
practices--for example, the Fair Debt Collection Practices Act (15 
U.S.C. 1692), and 26 U.S.C. 6103(p)(4) and applicable regulations of the 
Internal Revenue Service;
    (3) The contractor must be required to account strictly for all 
amounts collected; and
    (4) The contractor must agree to provide any data contained in its 
files relating to collection actions and related reports, current 
address of debtor, and reasonably current credit information upon 
returning an account to NASA for subsequent referral to the Department 
of Justice for litigation.
    (b) Funding of collection service contracts:
    (1) NASA may fund a collection service contract on a fixed-fee 
basis--that is, payment of a fixed fee determined without regard to the 
amount actually collected under the contract. However, such contract may 
be entered into only if and to the extent provided in the appropriation 
act or other legislation, except that this requirement does not apply to 
the use of a revolving fund authorized by statute. Accordingly, payment 
of the fixed-fee must be charged to available agency appropriations. See 
4 CFR 102.6(b)(1) and (3).
    (2) NASA may also fund a collection service contract on a 
contingent-fee basis--that is, by including a provision in the contract 
permitting the contractor to deduct its fee from amounts collected under 
the contract. The fee should be based on a percentage of the amount 
collected, consistent with prevailing commercial practice. See 4 CFR 
102.6(b)(2).
    (3) Except as authorized under paragraph (b)(2) of this section, or 
unless otherwise specifically provided by law, NASA must deposit all 
amounts recovered under collection service contracts (or by NASA 
employees on behalf of the agency) in the Treasury Department as 
miscellaneous receipts pursuant to 31 U.S.C. 3302. See 4 CFR 
102.6(b)(4).



Sec. 1261.410  Suspension or revocation of license or eligibility; liquidation of collateral.

    (a) In seeking the collection of statutory penalties, forfeitures, 
or debts provided for as an enforcement aid or for compelling 
compliance, NASA will give serious consideration to the suspension or 
revocation of licenses or other privileges for any inexcusable, 
prolonged, or repeated failure of a debtor to pay such a claim. In the 
case of a contractor under 48 CFR chapter 18, NASA will comply with the 
debarment, suspension, and ineligibility requirements of the NASA 
Federal Acquisition Regulation Supplement (NASA/FAR Supplement) at 48 
CFR 1809.4. Likewise, in making, guaranteeing, insuring, acquiring, or 
participating in loans, NASA will give serious

[[Page 351]]

consideration to suspending or disqualifying any lender, contractor, 
broker, borrower, or other debtor from doing further business with it or 
engaging in programs sponsored by it if such a debtor fails to pay its 
debts to the Government within a reasonable time. The failure of any 
surety to honor its obligations in accordance with 31 U.S.C. 9305 must 
be reported to the Treasury Department at once. Notification that a 
surety's certificate of authority to do business with the Federal 
Government has been revoked or forfeited by the Treasury Department will 
be forwarded by that Department to all interested agencies.
    (b) If NASA is holding security or collateral which may be 
liquidated and the proceeds applied on debts due it through the exercise 
of a power of sale in the security instrument or a nonjudicial 
foreclosure, it should do so by such procedures if the debtor fails to 
pay the debt within a reasonable time after demand, unless the cost of 
disposing of the collateral will be disproportionate to its value or 
special circumstances require judicial foreclosure. NASA will provide 
the debtor with reasonable notice of the sale, an accounting of any 
surplus proceeds, and any other procedures required by applicable 
contract or law. Collection from other sources, including liquidation of 
security or collateral, is not a prerequisite to requiring payment by a 
surety or insurance concern unless such action is expressly required by 
statute or contract.



Sec. 1261.411  Collection in installments.

    (a) Whenever feasible, and except as otherwise provided by law, 
debts owed to the United States, together with interest penalties, and 
administrative costs as required by Sec. 1261.412, should be collected 
in full in one lump sum. This is true whether the debt is being 
collected by administrative offset or by another method, including 
voluntary payment. However, if the debtor is financially unable to pay 
the indebtedness in one lump sum, payment may be accepted in regular 
installments. Debtors who represent that they are unable to pay the debt 
in one lump sum must submit financial statements. If NASA agrees to 
accept payment in regular installments, it will obtain a legally 
enforceable written agreement from the debtor which specifies all of the 
terms of the arrangement and which contains a provision accelerating the 
debt in the event the debtor defaults. The size and frequency of 
installment payments should bear a reasonable relation to the size of 
the debt and the debtor's ability to pay. If possible, the installment 
payments should be sufficient in size and frequency to liquidate the 
Government's claim in not more than 3 years. Installment payments of 
less than $50 per month should be accepted only if justifiable on the 
grounds of financial hardship or for some other reasonable cause. If the 
claim is unsecured, an executed confess-judgment note, comparable to the 
Department of Justice Form USA-70a, should be obtained from a debtor 
when the total amount of the deferred installments will exceed $750. 
Such notes may be sought when an unsecured obligation of a lesser amount 
is involved. When attempting to obtain confess-judgment notes, the 
debtor should be provided with written explanation of the consequences 
of signing the note, and documentation should be maintained sufficient 
to demonstrate that the debtor has signed the note knowingly and 
voluntarily. Security for deferred payments other than a confess-
judgment note may be accepted in appropriate cases. NASA, at its option, 
may accept installment payments notwithstanding the refusal of a debtor 
to execute a confess-judgment note or to give other security.
    (b) If the debtor owes more than one debt and designates how a 
voluntary installment payment is to be applied as among those debts, 
that designation must be followed. If the debtor does not designate the 
application of the payment, agencies should apply payments to the 
various debts in accordance with the best interests of the United 
States, as determined by the facts and circumstances of the particular 
case, paying special attention to applicable statutes of limitations.

[[Page 352]]



Sec. 1261.412  Interest, penalties, and administrative costs.

    (a) Pursuant to 31 U.S.C. 3717, NASA shall assess interest, 
penalties, and administrative costs on debts owed to the United States. 
Before assessing these charges, NASA must mail or hand deliver a written 
notice to the debtor explaining the requirements concerning the charges 
(see Sec. 1261.407(b)).
    (b) Interest shall accrue from the date on which notice of the debt 
and the interest requirements is first mailed or hand delivered to the 
debtor (on or after October 25, 1982), using the most current address 
that is available to the agency. If an ``advance billing'' procedure is 
used--that is, a bill is mailed before the debt is actually owed--it can 
include the required interest notification in the advance billing, but 
interest may not start to accrue before the debt is actually owed. 
Designated officials should exercise care to ensure that the notices 
required by this section are dated and mailed or hand delivered on the 
same day.
    (c) The rate of interest assessed shall be the rate of the current 
value of funds to the United States Treasury (i.e., the Treasury tax and 
loan account rate), as prescribed and published by the Secretary of the 
Treasury in the Federal Register and the Treasury Fiscal Requirements 
Manual Bulletins annually or quarterly, in accordance with 31 U.S.C. 
3717. NASA may assess a higher rate of interest if it reasonably 
determines that a higher rate is necessary to protect the interests of 
the United States. The rate of interest, as initially assessed, shall 
remain fixed for the duration of the indebtedness, except that where a 
debtor has defaulted on a repayment agreement and seeks to enter into a 
new agreement, NASA may set a new interest rate which reflects the 
current value of funds to the Treasury Department at the time the new 
agreement is executed. Interest should not be assessed on interest, 
penalties, or administrative costs required by this section. However, if 
the debtor defaults on a previous repayment agreement, charges which 
accrued but were not collected under the defaulted agreement shall be 
added to the principal to be paid under a new repayment agreement.
    (d) NASA shall assess against a debtor charges to cover 
administrative costs incurred as a result of a delinquent debt--that is, 
the additional costs incurred in processing and handling the debt 
because it became delinquent as defined in Sec. 1261.401(b). 
Calculations of administrative costs should be based upon actual costs 
incurred or upon cost analyses establishing an average of actual 
additional costs incurred by the agency in processing and handling 
claims against other debtors in similar stages of delinquency. 
Administrative costs may include costs incurred in obtaining a credit 
report or in using a private debt collector, to the extent they are 
attributable to delinquency.
    (e) NASA shall assess a penalty charge, not to exceed 6 percent a 
year, on any portion of a debt that is delinquent as defined in Sec. 
1261.401(b) for more than 90 days. This charge need not be calculated 
until the 91st day of delinquency, but shall accrue from the date that 
the debt became delinquent.
    (f) When a debt is paid in partial or installment payments, amounts 
received by the agency shall be applied first to outstanding penalty and 
administrative cost charges, second to accrued interest, and third to 
outstanding principal.
    (g) NASA must waive the collection of interest on the debt or any 
portion of the debt which is paid within 30 days after the date on which 
interest began to accrue. NASA may extend this 30-day period, on a case-
by-case basis, if it reasonably determines that such action is 
appropriate. Also, NASA may waive, in whole or in part, the collection 
of interest, penalties, and/or administrative costs (assessed under this 
section) under the criteria specified in Sec. 1261.414 relating to the 
compromise of claims (without regard to the amount of the debt), or if 
NASA determines that collection of these charges would be against equity 
and good conscience or not in the best interests of the United States. 
See 4 CFR 101.13(g). Such optional waivers should be handled on a case-
by-case basis, in consultation with officials designated under Sec. 
1261.403. Examples of situations in which NASA

[[Page 353]]

may consider waiving interest and other related charges are:
    (1) Pending consideration of a request for reconsideration or 
administrative review;
    (2) Acceptance of an installment plan or other compromise agreement, 
where there is no indication of lack of good faith on the part of the 
debtor in not repaying the debt, and the debtor has provided 
substantiating information of inability to pay or other unavoidable 
hardship which reasonably prevented the debt from being repaid.
    (h) Where a mandatory waiver or review statute applies, interest and 
related charges may not be assessed for those periods during which 
collection action must be suspended under Sec. 1261.416(c)(3).
    (i) Exemptions. (1) The provisions of 31 U.S.C. 3717 do not apply:
    (i) To debts owed by any State or local government;
    (ii) To debts arising under contracts which were executed prior to, 
and were in effect on (i.e., were not completed as of) October 25, 1982;
    (iii) To debts where an applicable statute, regulation required by 
statute, loan agreement, or contract either prohibits such charges or 
explicitly fixes the charges that apply to the debts involved; or
    (iv) Debts arising under the Social Security Act, the Internal 
Revenue Code of 1954, or the tariff laws of the United States.
    (2) NASA may, however, assess interest and related charges on debts 
which are not subject to 31 U.S.C. 3717 to the extent authorized under 
the common law or other applicable statutory authority.



Sec. 1261.413  Analysis of costs; automation; prevention of overpayments, delinquencies, or defaults.

    The Office of the NASA Comptroller will:
    (a) Issue internal procedures to provide for periodic comparison of 
costs incurred and amounts collected. Data on costs and corresponding 
recovery rates for debts of different types and in various dollar ranges 
should be used to compare the cost effectiveness of alternative 
collection techniques, establish guidelines with respect to points at 
which costs of further collection efforts are likely to exceed 
recoveries, and assist in evaluating offers in compromise.
    (b) Consider the need, feasibility, and cost effectiveness of 
automated debt collection operation.
    (c) Establish internal controls to identify causes, if any, of 
overpayments, delinquencies, and defaults, and establish procedures for 
corrective actions as needs dictate.



Sec. 1261.414  Compromise of claims.

    (a) Designated NASA officials (see Sec. Sec. 1261.402 and 1261.403) 
may compromise claims for money or property arising out of the 
activities of the agency where the claim, exclusive of interest, 
penalties, and administrative costs, does not exceed $20,000, prior to 
the referral of such claims to the General Accounting Office, or to the 
Department of Justice for litigation. The Comptroller General may 
exercise such compromise authority with respect to claims referred to 
the General Accounting Office (GAO) prior to their further referral for 
litigation. Only the Comptroller General may effect the compromise of a 
claim that arises out of an exception made by the GAO in the account of 
an accountable officer, including a claim against the payee, prior to 
its referral by the GAO for litigation.
    (b) When the claim, exclusive of interest, penalties, and 
administrative costs, exceeds $20,000, the authority to accept the 
compromise rests solely with the Department of Justice. NASA should 
evaluate the offer, using the factors set forth in paragraphs (c) 
through (f) of this section, and may recommend compromise for reasons 
under one, or more than one, of those paragraphs. If NASA then wishes to 
accept the compromise, it must refer the matter to the Department of 
Justice, using the Claims Collection Litigation Report. See Sec. 
1261.417(e) or 4 CFR 105.2(b). Claims for which the gross amount is over 
$200,000 shall be referred to the Commercial Litigation Branch, Civil 
Division, Department of Justice, Washington, DC 20530. Claims for which 
the gross original amount is $200,000 or less shall be referred to the

[[Page 354]]

United States Attorney in whose judicial district the debtor can be 
found. The referral should specify the reasons for the agency's 
recommendation. If NASA has a debtor's firm written offer of compromise 
which is substantial in amount and the agency is uncertain as to whether 
the offer should be accepted, it may refer the offer, the supporting 
data, and particulars concerning the claim to the General Accounting 
Office or to the Department of Justice. The General Accounting Office or 
the Department of Justice may act upon such an offer or return it to the 
agency with instructions or advice. If NASA wishes to reject the 
compromise, GAO or Department of Justice approval is not required.
    (c) A claim may be compromised pursuant to this section if NASA 
cannot collect the full amount because of the debtor's inability to pay 
the full amount within a reasonable time, or the refusal of the debtor 
to pay the claim in full and the Government's inability to enforce 
collection in full within a reasonable time by enforced collection 
proceedings. In determining the debtor's inability or refusal to pay, 
the following factors, among others, may be considered:
    (1) Age and health of the debtor;
    (2) Present and potential income;
    (3) Inheritance prospects;
    (4) The possibility that assets have been concealed or improperly 
transferred by the debtor;
    (5) The availability of assets or income which may be realized by 
enforced collection proceedings; and
    (6) The applicable exemptions available to the debtor under State 
and Federal law in determining the Government's ability to enforce 
collection. Uncertainty as to the price which collateral or other 
property will bring at forced sale may properly be considered in 
determining the Government's ability to enforce collection. The 
compromise should be for an amount which bears a reasonable relation to 
the amount which can be recovered by enforced collection procedures, 
having regard for the exemptions available to the debtor and the time 
which collection will take.
    (d) A claim may be compromised if there is a real doubt concerning 
the Government's ability to prove its case in court for the full amount 
claimed, either because of the legal issues involved or a bona fide 
dispute as to the facts. The amount accepted in compromise in such cases 
should fairly reflect the probability of prevailing on the legal 
question involved, the probabilities with respect to full or partial 
recovery of a judgment, paying due regard to the availability of 
witnesses and other evidentiary support for the Government claim, and 
related pragmatic considerations. In determining the litigative risks 
involved, proportionate weight should be given to the probable amount of 
court costs and attorney fees pursuant to the Equal Access to Justice 
Act which may be assessed against the Government if it is unsuccessful 
in litigation. See 28 U.S.C. 2412.
    (e) A claim may be compromised if the cost of collecting the claim 
does not justify the enforced collection of the full amount. The amount 
accepted in compromise in such cases may reflect an appropriate discount 
for the administrative and litigative costs of collection, paying heed 
to the time which it will take to effect collection. Costs of collecting 
may be a substantial factor in the settlement of small claims, but 
normally will not carry great weight in the settlement of large claims. 
In determining whether the cost of collecting justifies enforced 
collection of the full amount, it is legitimate to consider the positive 
effect that enforced collection of some claims may have on the 
collection of other claims. Since debtors are more likely to pay when 
first requested to do so if an agency has a policy of vigorous 
collection of all claims, the fact that the cost of collection of any 
one claim may exceed the amount of the claim does not necessarily mean 
that the claim should be compromised. The practical benefits of vigorous 
collection of a small claim may include a demonstration to other debtors 
that resistance to payment is not likely to succeed.
    (f) Enforcement policy. Statutory penalties, forfeitures, or debts 
established as an aid to enforcement and to compel

[[Page 355]]

compliance may be compromised pursuant to this part if the agency's 
enforcement policy in terms of deterrence and securing compliance, both 
present and future, will be adequately served by acceptance of the sum 
to be agreed upon. Mere accidental or technical violations may be dealt 
with less severely than willful and substantial violations.
    (g) Compromises payable in installments are to be discouraged. 
However, if payment of a compromise by installments is necessary, a 
legally enforceable agreement for the reinstatement of the prior 
indebtedness less sums paid thereon and acceleration of the balance due 
upon default in the payment of any installment should be obtained, 
together with security in the manner set forth in Sec. 1261.411, in 
every case in which this is possible.
    (h) If the agency's files do not contain reasonably up-to-date 
credit information as a basis for assessing a compromise proposal, such 
information may be obtained from the individual debtor by obtaining a 
statement executed under penalty of perjury showing the debtor's assets 
and liabilities, income, and expenses. Forms such as Department of 
Justice Form OBD-500 or OBD-500B may be used for this purpose. Similar 
data may be obtained from corporate debtors using a form such as 
Department of Justice Form OBD-500C or by resort to balance sheets and 
such additional data as seems required. Samples of the Department of 
Justice forms are available from the Office of the NASA General Counsel. 
Neither a percentage of a debtor's profits nor stock in a debtor 
corporation will be accepted in compromise of a claim. In negotiating a 
compromise with a business concern, consideration should be given to 
requiring a waiver of the tax-loss-carry-back rights of the debtor.
    (i) Joint and several liability. When two or more debtors are 
jointly and severally liable, collection action will not be withheld 
against one such debtor until the other or others pay their 
proportionate shares. NASA will not attempt to allocate the burden of 
paying such claims as between the debtors but will proceed to liquidate 
the indebtedness as quickly as possible. Care should be taken that a 
compromise agreement with one such debtor does not release the agency's 
claim against the remaining debtors. The amount of a compromise with one 
such debtor shall not be considered a precedent or as morally binding in 
determining the amount which will be required from other debtors jointly 
and severally liable on the claim.



Sec. 1261.415  Execution of releases.

    Upon receipt of full payment of a claim, or the amount in compromise 
of a claim as determined pursuant to Sec. 1261.414, the official 
designated in Sec. 1261.402 will prepare and execute, on behalf of the 
United States, an appropriate release, which shall include the provision 
that it shall be void if procured by fraud, misrepresentation, the 
presentation of a false claim, or mutual mistake of fact.



Sec. 1261.416  Suspending or terminating collection action.

    (a) The standards set forth in this section apply to the suspension 
or termination of collection action pursuant to 31 U.S.C. 3711(a)(3) on 
claims which do not exceed $20,000, exclusive of interest, penalties, 
and administrative costs, after deducting the amount of partial payments 
or collections, if any. NASA may suspend or terminate collection action 
under this part with respect to claims for money or property arising out 
of activities of the agency, prior to the referral of such claims to the 
General Accounting Office or to the Department of Justice for 
litigation. The Comptroller General (or designee) may exercise such 
authority with respect to claims referred to the General Accounting 
Office prior to their further referral for litigation.
    (b) If, after deducting the amount of partial payments or 
collections, if any, a claim exceeds $20,000, exclusive of interest, 
penalties, and administrative costs, the authority to suspend or 
terminate rests solely with the Department of Justice. If the designated 
official believes suspension or termination may be appropriate, the 
matter should be evaluated using the factors set forth in paragraphs (c) 
and (d) of this section. If the agency concludes that suspension or 
termination is appropriate,

[[Page 356]]

it must refer the matter, with its reasons for the recommendation, to 
the Department of Justice, using the Claims Collection Litigation 
Report. See Sec. 1261.417(e) or 4 CFR 105.2(b). If NASA decides not to 
suspend or terminate collection action on the claim, Department of 
Justice approval is not required; or if it determines that its claim is 
plainly erroneous or clearly without legal merit, it may terminate 
collection action regardless of the amount involved, without the need 
for Department of Justice concurrence.
    (c) Suspension of collection activity--(1) Inability to locate 
debtor. Collection action may be suspended temporarily on a claim when 
the debtor cannot be located after diligent effort and there is reason 
to believe that future collection action may be sufficiently productive 
to justify periodic review and action on the claim, with due 
consideration for the size and amount which may be realized thereon. The 
following sources may be of assistance in locating missing debtors: 
Telephone directories; city directories; postmasters; drivers' license 
records; automobile title and registration records; state and local 
government agencies; the Internal Revenue Service (see 4 CFR 102.18); 
other Federal agencies; employers, relatives, friends; credit agency 
skip locate reports, and credit bureaus. Suspension as to a particular 
debtor should not defer the early liquidation cf security for the debt. 
Every reasonable effort should be made to locate missing debtors 
sufficiently in advance of the bar of the applicable statute of 
limitations, such as 28 U.S.C. 2415, to permit the timely filing of suit 
if such action is warranted. If the missing debtor has signed a confess-
judgment note and is in default, referral of the note for the entry of 
judgment should not be delayed because of the debtor's missing status.
    (2) Financial condition of debtor. Collection action may also be 
suspended temporarily on a claim when the debtor owns no substantial 
equity in realty or personal property and is unable to make payments on 
the Government's claim or effect a compromise at the time, but the 
debtor's future prospects justify retention of the claim for periodic 
review and action, and:
    (i) The applicable statute of limitations has been tolled or started 
running anew; or
    (ii) Future collection can be effected by offset, notwithstanding 
the statute of limitations, with due regard to the 10-year limitation 
prescribed by 31 U.S.C. 3716(c)(1); or
    (iii) The debtor agrees to pay interest on the amount of the debt on 
which collection action will be temporarily suspended, and such 
temporary suspension is likely to enhance the debtor's ability to fully 
pay the principle amount of the debt with interest at a later date.
    (3) Request for waiver or administrative review. If the statute 
under which waiver or administrative review is sought is ``mandatory,'' 
that is, if it prohibits the agency from collecting the debt prior to 
the agency's consideration of the request for waiver or review (see 
Califano v. Yamasaki, 422 U.S. 682 (1979)), then collection action must 
be suspended until either: The agency has considered the request for 
waiver/review; or the applicable time limit for making the waiver/review 
request, as prescribed in a written notice, has expired and the debtor, 
upon notice, has not made such a request. If the applicable waiver/
review statute is ``permissive,'' that is, if it does not require all 
requests for waiver/review to be considered, and if it does not prohibit 
collection action pending consideration of a waiver/request (for 
example, 5 U.S.C. 5584), collection action may be suspended pending 
agency action on a waiver/review request based upon appropriate 
consideration, on a case-by-case basis, as to whether:
    (i) There is a reasonable possibility that waiver will be granted or 
that the debt (in whole or in part) will be found not owing from the 
debtor;
    (ii) The Government's interests would be protected, if suspension 
were granted, by reasonable assurance that the debt could be recovered 
if the debtor does not prevail; and
    (iii) Collection of the debt will cause undue hardship.
    (4) If the applicable statutes and regulations would not authorize 
refund by the agency to the debtor of amounts collected prior to agency 
consideration of the debtor's waiver/review request

[[Page 357]]

(in the event the agency acts favorably on it), collection action should 
ordinarily be suspended, without regard to the factors specified for 
permissive waivers, unless it appears clear, based on the request and 
the surrounding circumstances, that the request is frivolous and was 
made primarily to delay collection. See 4 CFR 104.2.
    (d) Termination of collection activity. Collection activity may be 
terminated and NASA may close its file on the claim based on the 
following:
    (1) Inability to collect any substantial amount. Collection action 
may be terminated on a claim when it becomes clear that the Government 
cannot collect or enforce collection of any significant sum from the 
debtor, having due regard for the judicial remedies available to the 
Government, the debtor's future financial prospects, and the exemptions 
available to the debtor under State and Federal law. In determining the 
debtor's inability to pay, the following factors, among others, may be 
considered: Age and health of the debtor; present and potential income; 
inheritance prospects; the possibility that assets have been concealed 
or improperly transferred by the debtor; the availability of assets or 
income which may be realized by enforced collection proceedings.
    (2) Inability to locate debtor. Collection action may be terminated 
on a claim when the debtor cannot be located, and either:
    (i) There is no security remaining to be liquidated; or
    (ii) The applicable statute of limitations has run and the prospects 
of collecting by offset, notwithstanding the bar of the statute of 
limitations, are too remote to justify retention of the claim.
    (3) Cost will exceed recovery. Collection action may be terminated 
on a claim when it is likely that the cost of further collection action 
will exceed the amount recoverable thereby.
    (4) Claim legally without merit. Collection action should be 
terminated immediately on a claim whenever it is determined that the 
claim is legally without merit.
    (5) Claim cannot be substantiated by evidence. Collection action 
should be terminated when it is determined that the evidence necessary 
to prove the claim cannot be produced or the necessary witnesses are 
unavailable and efforts to reduce voluntary payment are unavailing.
    (e) Transfer of claim. When NASA has doubt as to whether collection 
action should be suspended or terminated on a claim, it may refer the 
claim to the General Accounting Office for advice. When a significant 
enforcement policy is involved in reducing a statutory penalty or 
forfeiture to judgment, or recovery of a judgment is a prerequisite to 
the imposition of administrative sanctions, such as the suspension or 
revocation of a license or the privilege of participating in a 
Government sponsored program, NASA may refer such a claim for litigation 
even though termination of collection activity might otherwise be given 
consideration under paragraphs (d)(1) and (2) of this section. Claims on 
which NASA holds a judgment by assignment or otherwise will be referred 
to the Department of Justice for further action if renewal of the 
judgment lien or enforced collection proceedings are justified under the 
criteria discussed in this section.



Sec. 1261.417  Referral to Department of Justice (DJ) or General Accounting Office (GAO).

    (a) Prompt referral. Except as provided in paragraphs (b) and (c) of 
this section, claims on which aggressive collection action has been 
taken in accordance with Sec. 1261.406 and which cannot be compromised, 
or on which collection action cannot be suspended or terminated, in 
accordance with Sec. Sec. 1261.414 and 1261.416, shall be promptly 
referred to the Department of Justice for litigation.
    (1) Claims for which the gross original amount is over $200,000 
shall be referred to the Commercial Litigation Branch, Civil Division, 
Department of Justice, Washington, DC 20530.
    (2) Claims for which the gross original amount is $200,000 or less 
shall be referred to the United States Attorney in whose judicial 
district the debtor can be found. Referrals should be made as early as 
possible, consistent with aggressive agency collection action and the 
observance of the regulations contained in this subpart, and in any

[[Page 358]]

event, well within the period for bringing a timely suit aqainst the 
debtor. Ordinarily, referrals should be made within l year of the 
agency's final determination of the fact and the amount of the debt.
    (3) Minimum amount. NASA is not to refer claims of less than $600, 
exclusive of interest, penalties, and administrative costs, for 
litigation unless:
    (i) Referral is important to a significant enforcement policy; or
    (ii) The debtor not only has the clear ability to pay the claim but 
the Government can effectively enforce payment, having due regard for 
the exemptions available to the debtor under State and Federal law and 
the judicial remedies available to the Government.
    (b) Claims arising from audit exceptions taken by the GAO to 
payments made by agencies must be referred to the GAO for review and 
approval prior to referral to the Department of Justice for litigation, 
unless NASA has been granted an exception by the GAO. Referrals shall 
comply with instructions, including monetary limitations, contained in 
the GAO Policy and Procedures Manual for Guidance to Federal Agencies 
and paragraphs (e) and (f) of this section.
    (c) When the merits of the claim, the amount owed on the claim, or 
the propriety of acceptance of a proposed compromise, suspension, or 
termination are in doubt, the designated official should refer the 
matter to the General Accounting Office for resolution and instructions 
prior to proceeding with collection action and/or referral to the 
Department of Justice for litigation.
    (d) Once a claim has been referred to GAO or to the Department of 
Justice pursuant to this section, NASA shall refrain from having any 
contact with the debtor about the pending claim and shall direct the 
debtor to GAO or to the DJ, as appropriate, when questions concerning 
the claim are raised by the debtor. GAO or the DJ, as appropriate, shall 
be immediately notified by NASA of any payments which are received from 
the debtor subsequent to referral of a claim under this section.
    (e) Claims Collection Litigation Report (CCLR). Unless an exception 
has been granted by the Department of Justice in consultation with the 
General Accounting Office, the Claims Collection Litigation Report 
(CCLR), which was officially implemented by NASA, effective March 1, 
1983, shall be used with all referrals of administratively uncollectible 
claims. As required by the CCLR, the following information must be 
included:
    (1) Report of prior collection actions. A checklist or brief summary 
of the actions previously taken to collect or compromise the claim. If 
any of the administrative collection actions have been omitted, the 
reason for their omission must be provided. GAO, the United States 
Attorney, or the Civil Division of the Department of Justice may return 
claims at their option when there is insufficient justification for the 
omission of one or more of the administrative collection actions 
enumerated in this subpart (see 4 CFR part 102).
    (2) Current address of debtor. The current address of the debtor, or 
the name and address of the agent for a corporation upon whom service 
may be made. Reasonable and appropriate steps will be taken to locate 
missing parties in all cases. Referrals to the Department of Justice for 
the commencement of foreclosure of other proceedings, in which the 
current address of any party is unknown, will be accompanied by a 
listing of the prior known addresses of such party and a statement of 
the steps taken to locate that party.
    (3) Credit data. Reasonably current credit data which indicates that 
there is a reasonable prospect of effecting enforced collection from the 
debtor, having due regard for the exemptions available to the debtor 
under State and Federal law and the judicial remedies available to the 
Government. Such credit data may take the form of:
    (i) A commercial credit report;
    (ii) An agency investigative report showing the debtor's assets, 
liabilities, income, and expenses;
    (iii) The individual debtor's own financial statement executed under 
penalty of perjury reflecting the debtor's assets, liabilities, income, 
and expenses; or
    (iv) An audited balance sheet of a corporate debtor.
    (4) Reasons for credit data omissions. The credit data may be 
omitted if:

[[Page 359]]

    (i) A surety bond is available in an amount sufficient to satisfy 
the claim in full;
    (ii) The forced sale value of the security available for application 
to the Government's claim is sufficient to satisfy the claim in full;
    (iii) NASA wishes to liquidate loan collateral through judicial 
foreclosure but does not desire a deficiency judgment;
    (iv) The debtor is in bankruptcy or receivership;
    (v) The debtor's liability to the Government is fully covered by 
insurance, in which case NASA will furnish such information as it can 
develop concerning the identity and address of the insurer and the type 
and amount of insurance coverage; or
    (vi) The status of the debtor is such that credit data is not 
normally available or cannot reasonably be obtained, for example, a unit 
of State or local government.
    (f) Preservation of evidence. Care will be taken to preserve all 
files, records, and exhibits on claims referred or to be referred to the 
Department of Justice for litigation. Under no circumstances should 
original documents be sent to the Department of Justice or the United 
States Attorney without specific prior approval to do so. Copies of 
relevant documents should be sent whenever necessary.



             Subpart 1261.5--Administrative Offset of Claims

    Source: 52 FR 19487, May 26, 1987, unless otherwise noted.



Sec. 1261.500  Scope of subpart.

    (a) This subpart applies to collection of claims by administrative 
offset under section 5 of the Federal Claims Collection Act of 1966 as 
amended by the Debt Collection Act of 1982 (31 U.S.C. 3716), other 
statutory authority, or the common law; it does not include ``Salary 
Offset,'' which is governed by subpart 1261.6, infra. Consistent with 4 
CFR 102.3, collection by administrative offset will be undertaken by 
NASA on all liquidated or certain in amount claims in every instance in 
which such collection is determined to be feasible and not otherwise 
prohibited.
    (b) Whether collection by administrative offset is feasible is a 
determination to be made by NASA on a case-by-case basis, in the 
exercise of sound discretion. NASA will consider not only whether 
administrative offset can be accomplished, both practically and legally, 
but also whether offset is best suited to further and protect all of the 
Government's interests. In appropriate circumstances, NASA may give due 
consideration to the debtor's financial condition; or whether offset 
would tend to substantially interfere with or defeat the purposes of the 
program authorizing the payments against which offset is contemplated. 
For example, under a grant program in which payments are made in advance 
of the grantee's performance, offset will normally be inappropriate.
    (c) NASA is not authorized by 31 U.S.C. 3716 to use administrative 
offset with respect to:
    (1) Debts owed by any State or local Government;
    (2) Debts arising under or payments made under the Social Security 
Act, the Internal Revenue Code of 1954, or the tariff laws of the United 
States; or
    (3) Any case in which collection of the type of debt involved by 
administrative offset is explicitly provided for or prohibited by 
another statute. However, unless otherwise provided by contract or law, 
debts or payments which are not subject to administrative offset under 
31 U.S.C. 3716 may be collected by administrative offset under the 
common law or other applicable statutory authority.



Sec. 1261.501  Definition.

    Administrative offset--the term, as defined in 31 U.S.C. 3701(a)(1), 
means ``withholding money payable by the United States Government to, or 
held by the Government for, a person to satisfy a debt the person owes 
the Government.''



Sec. 1261.502  Notification procedures.

    (a) Before collecting any claims through administrative offset, a 
30-day written notice must be sent to the debtor by certified mail, 
return receipt requested. The notice must include:
    (1) The nature and amount of the debt;

[[Page 360]]

    (2) NASA's intention to collect by administrative offset; and
    (3) An explanation of the debtor's rights under 31 U.S.C. 3716(a), 
or other relied upon statutory authority, which must include a statement 
that the debtor has the opportunity, within the 30-day notice period, 
to:
    (i) Inspect and copy records of NASA with respect to the debt;
    (ii) Request a review by NASA of its decision related to the claim; 
and
    (iii) Enter into a written agreement with the designated official 
(see Sec. 1261.402) to repay the amount of the claim. However, sound 
judgment should be exercised in determining whether to accept a 
repayment agreement in lieu of offset. The determination should balance 
the Government's interest in collecting the debt against fairness to the 
debtor. If the debt is delinquent and the debtor has not disputed its 
existence or amount, NASA should accept a repayment agreement in lieu of 
offset only if the debtor is able to establish that offset would result 
in undue financial hardship or would be against equity and good 
conscience.
    (b) NASA may effect administrative offset against a payment to be 
made to a debtor prior to the completion of the procedures required by 
paragraph (a) of this section if:
    (1) Failure to take the offset would substantially prejudice the 
Government's ability to collect the debt; and
    (2) The time before the payment is to be made does not reasonably 
permit the completion of those procedures. Such prior offset must be 
promptly followed by the completion of those procedures. Amounts 
recovered by offset but later found not to be owed to the Government 
shall be promptly refunded.
    (3) In cases where the procedural requirements of paragraph (a) of 
this section had previously been provided to the debtor in connection 
with the same debt under some other statutory or regulatory authority, 
such as pursuant to a notice of audit disallowance or salary offset 
under Sec. 1261.603, the agency is not required to duplicate those 
requirements before taking administrative offset.



Sec. 1261.503  Agency records inspection; hearing or review.

    (a) NASA shall provide the debtor with a reasonable opportunity for 
an ``oral hearing'' when:
    (1) An applicable statute authorizes or requires the agency to 
consider waiver of the indebtedness involved, the debtor requests waiver 
of the indebtedness, and the waiver determination turns on an issue of 
credibility or veracity; or
    (2) The debtor requests reconsideration of the debt and the agency 
determines that the question of the indebtedness cannot be resolved by 
review of the documentary evidence, for example, when the validity of 
the debt turns on an issue of credibility or veracity. Unless otherwise 
required by law, an oral hearing under this section is not required to 
be a formal evidentiary-type hearing, although significant matters 
discussed at the hearing should be carefully documented. See 4 CFR 
102.3(c)(1). Such hearing may be an informal discussion/interview with 
the debtor, face-to-face meeting between debtor and cognizant NASA 
personnel, or written formal submission by the debtor and response by 
the NASA cognizant personnel with an opportunity for oral presentation. 
The hearing will be conducted before or in the presence of an official 
designated by the NASA General Counsel or designee on a case-by-case 
basis. The decision of the reviewing/hearing official should be 
communicated in writing (no particular form is required) to the affected 
parties, and will constitute the final administrative decision of the 
agency.
    (b) Paragraph (a) of this section does not require an oral hearing 
with respect to debt collection systems in which determinations of 
indebtedness or waiver rarely involve issues of credibility or veracity 
and NASA has determined that review of the written record is ordinarily 
an adequate means to correct prior mistakes. In administering such a 
system, the agency is not required to sift through all of the requests 
received in order to accord oral hearings in those few cases which may 
involve issues of credibility or veracity. See 4 CFR 102.3(c)(2).
    (c) In those cases where an oral hearing is not required or granted, 
NASA

[[Page 361]]

will nevertheless accord the debtor a ``paper hearing''--that is, the 
agency will make its determination on the request for waiver or 
reconsideration based upon a review of the available written record. See 
4 CFR 102.3(c)(3). In such case, the responsible official or designee 
shall refer the request to the appropriate NASA legal counsel for review 
and determination by counsel or designee.
    (d) A request to inspect and/or copy the debtor's own debt records 
or related files, and/or for a hearing or review accompanied by a 
statement of the basis or grounds for such hearing or review, must be 
submitted within 30 calendar days of the receipt of the written notice 
under Sec. 1261.502(a). A reasonable time to inspect and copy records 
will be provided during official working hours, but not to exceed 5 
business days, unless a verified statement showing good cause requires a 
longer period. Any suspension of collection or other charges during the 
period of the inspection, or hearing or review, shall comply with 
Sec. Sec. 1261.412 and 1261.416. Requests for or consideration of 
compromising the debt must comply with Sec. 1261.414.



Sec. 1261.504  Interagency requests.

    (a) Requests to NASA by other Federal agencies for administrative 
offset should be in writing and forwarded to the Office of the NASA 
Comptroller, NASA Headquarters, Washington, DC 20546.
    (b) Requests by NASA to other Federal agencies holding funds payable 
to the debtor should be in writing and forwarded, certified return 
receipt, as specified by that agency in its regulations; however, if 
such rule is not readily available or identifiable, the request should 
be submitted to that agency's office of legal counsel with a request 
that it be processed in accordance with their internal procedures.
    (c) Requests to and from NASA should be processed within 30 calendar 
days of receipt. If such processing is impractical or not feasible, 
notice to extend the time period for another 30 calendar days should be 
forwarded 10 calendar days prior to the expiration of the first 30-day 
period.
    (d) Requests from or to NASA must be accompanied by a certification 
that the debtor owes the debt (including the amount) and that the 
provisions of (or comparable to) subpart 1261.5 or subpart 1261.6, as 
applicable, have been fully complied with. NASA will cooperate with 
other agencies in effecting collection.



Sec. 1261.505  Multiple debts.

    When collecting multiple debts by administrative offset, NASA will 
apply the recovered amounts to those debts in accordance with the best 
interests of the United States, as determined by the facts and 
circumstances of the particular case, paying special attention to 
applicable statutes of limitations.



Sec. 1261.506  Limitation periods.

    NASA may not initiate administrative offset to collect a debt under 
31 U.S.C. 3716 more than 10 years after the Government's right to 
collect the debt first accrued, unless facts material to the 
Government's right to collect the debt were not known and could not 
reasonably have been known by the official or officials of the 
Government who were charged with the responsibility to discover and 
collect such debts. Determination of when the debt first accrued is to 
be made in accordance with existing law regarding the accrual of debts, 
such as under 28 U.S.C. 2415. See 4 CFR 102.3(b)(3).



Sec. 1261.507  Civil Service Retirement and Disability Fund.

    (a) Unless otherwise prohibited by law, NASA may request that moneys 
which are due and payable to a debtor from the Civil Service Retirement 
and Disability Fund be administratively offset in reasonable amounts in 
order to collect in one full payment or a minimal number of payments 
debts owed to the United States by the debtor. Such requests shall be 
made to the appropriate officials of the Office of Personnel Management 
(OPM) in accordance with the OPM regulations (see 5 CFR 831.1801, et 
seq.).
    (b) When making a request for administrative offset under paragraph 
(a) of this section, NASA shall include a written certification that:

[[Page 362]]

    (1) The debtor owes the United States a debt, including the amount 
of the debt;
    (2) NASA has complied with the applicable statutes, regulations, and 
procedures of the Office of Personnel Management; and
    (3) NASA has complied with the requirements of this subpart 1261.5 
which implements 4 CFR 102.3, including any required hearing or review.
    (c) Once NASA has decided to request administrative offset under 
this section, the request should be made as soon as practical after 
completion of the applicable procedures in order that the Office of 
Personnel Management may identify and ``flag'' the debtor's account in 
anticipation of the time when the debtor requests or becomes eligible to 
receive payments from the Fund. This will satisfy any requirement that 
offset be initiated prior to expiration of the applicable statute of 
limitations. At such time as the debtor makes a claim for payments from 
the Fund, if at least a year has elapsed since the offset request was 
originally made, the debtor should be permitted to offer a satisfactory 
repayment plan in lieu of offset upon establishing that changed 
financial circumstances would render the offset unjust.
    (d) If NASA collects part or all of the debt by other means before 
deductions are made or completed pursuant to paragraph (a) of this 
section, the designated official should act promptly to modify or 
terminate the agency's request to OPM for offset.
    (e) OPM is not required or authorized by 4 CFR 102.4 to review the 
merits of NASA's determination with respect to:
    (1) The amount and validity of the debt;
    (2) Waiver under an applicable statute; or
    (3) Provide or not provide an oral hearing.



Sec. 1261.508  Offset against a judgment.

    Collection by offset against a judgment obtained by a debtor against 
the United States shall be accomplished in accordance with 31 U.S.C. 
3728.



 Subpart 1261.6--Collection by Offset From Indebted Government Employees

    Source: 52 FR 19487, May 26, 1987, unless otherwise noted.



Sec. 1261.600  Purpose of subpart.

    This subpart implements 5 U.S.C. 5514 in accordance with the OPM 
regulation and establishes the procedural requirements for recovering 
pre-judgment debts from the current pay account of an employee through 
what is commonly called salary offset, including a situation where NASA 
(the current paying agency) is not the employee's creditor agency. 
Salary offset to satisfy a judgment or a court determined debt is 
governed by section 124 of Pub. L. 97-276 (October 2, 1982), 5 U.S.C. 
5514 note.



Sec. 1261.601  Scope of subpart.

    (a) Coverage. This subpart applies to agencies and employees as 
defined in Sec. 1261.602.
    (b) Applicability. This subpart and 5 U.S.C. 5514 apply in 
recovering certain prejudgment debts by administrative offset except 
where the employee consents to the recovery, from the current pay 
account of an employee. Because it is an administrative offset, debt 
collection procedures for salary offset which are not specified in 5 
U.S.C. 5514 and this subpart should be consistent with subpart 1261.5.
    (1) Excluded debts or claims. The procedures contained in this 
subpart do not apply to debts or claims arising under the Internal 
Revenue Code of 1954 as amended (26 U.S.C. 1 et seq.), the Social 
Security Act (42 U.S.C. 301 et seq.), or the tariff laws of the United 
States; or to any case where collection of a debt by salary offset is 
explicitly provided for or prohibited by another statute (e.g., travel 
advances in 5 U.S.C. 5705, employee training expenses in 5 U.S.C. 4108, 
and debts determined by a court as provided in 5 U.S.C. 5514 note).
    (2) Waiver requests and claims to the General Accounting Office. 
This subpart does not preclude an employee from requesting waiver of a 
salary overpayment under 5 U.S.C. 5584, 10 U.S.C. 2774,

[[Page 363]]

or 32 U.S.C. 716, or in any way questioning the amount or validity of a 
debt by submitting a subsequent claim to the General Accounting Office 
in accordance with procedures prescribed by the General Accounting 
Office. Similarly, in the case of other types of debts, it does not 
preclude an employee from requesting waiver, if waiver is available 
under any statutory provision pertaining to the particular debt being 
collected.



Sec. 1261.602  Definitions.

    For purposes of this subpart:
    (a) Agency means:
    (1) An Executive agency as defined in section 105 of title 5, United 
States Code, including U.S. Postal Service and the U.S. Postal Rate 
Commission;
    (2) A military department as defined in section 102 of Title 5, 
United States Code;
    (3) An agency or court in the judicial branch, including a court as 
defined in section 610 of Title 28, United States Code, the District 
Court for the Northern Mariana Islands, and the Judicial Panel on 
Multidistrict Litigation;
    (4) An agency of the legislative branch, including the U.S. Senate 
and the U.S. House of Representatives; and
    (5) Other independent establishments that are entities of the 
Federal Government.
    (b) Creditor agency means the agency to which the debt is owed.
    (c) Debt means an amount owed to the United States from sources 
which include loans insured or guaranteed by the United States and all 
other amounts due the United States from fees, leases, rents, royalties, 
services, sales of real or personal property, overpayments, penalties, 
damages, interest, fines and forfeitures (except those arising under the 
Uniform Code of Military Justice), and all other similar sources.
    (d) Disposable pay means that part of current basic pay, special 
pay, incentive pay, retired pay, retainer pay, or in the case of an 
employee not entitled to basic pay, other authorized pay remaining after 
the deduction of any amount required by law to be withheld. NASA must 
exclude deductions listed in OPM's garnishment regulations at 5 CFR 
581.105 (b) through (f) to determine disposable pay subject to salary 
offset.
    (e) Employee means a current employee of an agency, including a 
current member of the Armed Forces or a Reserve of the Armed Forces 
(Reserves).
    (f) Paying agency means the agency employing the individual and 
authorizing the payment of his or her current pay.
    (g) Salary offset means an administrative offset to collect a debt 
under 5 U.S.C. 5514 by deduction(s) at one or more officially 
established pay intervals from the current pay account of an employee 
without his or her consent.
    (h) Waiver means the cancellation, remission, forgiveness, or 
nonrecovery of a debt allegedly owed by an employee to an agency as 
permitted or required by 5 U.S.C. 8346(b), or any other law.



Sec. 1261.603  Procedures for salary offset.

    If NASA is both the paying and creditor agency, the following 
requirements must be met before a deduction is made from the current pay 
account of an employee.
    (a) Written notice. The employee must be sent a minimum of 30 days 
written notice, which specifies:
    (1) The origin, nature and amount of the indebtedness, and the 
official to contact within the agency (ordinarily, the designated 
financial management official for the particular installation);
    (2) The intention of the agency to initiate collection of the debt 
through salary offset by deductions from the employee's current 
disposable pay, stating the amount, frequency, proposed beginning date, 
and duration of intended deductions (the amount to be deducted for any 
period, without the consent of the employee, may not exceed 15 percent 
of disposable pay);
    (3) An explanation of any interest, penalties, or administrative 
costs included in the amount, and that such assessment must be made 
unless excused in accordance with 14 CFR 1261.412;
    (4) The right for an opportunity (which does not toll the running of 
the 30-day period) to inspect and copy NASA records relating to the debt 
or to request and receive (if reasonable) a copy of such records, 
provided that

[[Page 364]]

such opportunity must be exercised on or before the 15th day following 
receipt of the notice and can be conducted only during official working 
hours for a reasonable period of time not to exceed 5 working days;
    (5) If not previously provided, the opportunity (under terms 
agreeable to NASA) to establish a schedule for the voluntary repayment 
of the debt or to enter into a written agreement to establish a schedule 
for repayment of the debt in lieu of offset. The agreement must be in 
writing, signed by both the employee and the authorized agency official 
(see 14 CFR 1261.402) and documented in NASA's files (see 14 CFR 
1261.407(d));
    (6) An opportunity for a hearing, as provided in paragraph (c) of 
this section, on the agency's determination concerning the existence and 
amount of the debt, and the terms of the repayment schedule (in the case 
of an employee whose repayment schedule is established other than by 
written agreement);
    (7) The hearing request should be addressed to the Office of the 
NASA General Counsel or to the Office of Chief Counsel of the NASA 
installation involved, as appropriate; counsel's name and address will 
be as stated in the notice.
    (8) Any other rights and remedies available to the employee under 
statutes or regulations governing the program for which the collection 
is being made; and
    (9) Unless there are applicable contractual or statutory provisions 
to the contrary, that amounts paid on or deducted for the debt which are 
later waived or found not owed to the United States will be promptly 
refunded to the employee.
    (b) Exception to entitlement to written notice. NASA is not required 
to comply with paragraph (a) of this section for any adjustment to pay 
arising out of an employee's election of coverage or a change in 
coverage under a Federal benefits program requiring periodic deductions 
from pay, if the amount to be recovered was accumulated over four pay 
periods or less.
    (c) Petition filing; hearing; decision and review. The notice 
described in paragraph (a) of this section should include the following 
provisions, which may be copied and attached to the notice.
    (1) The employee may petition for a hearing, but such petition must 
be in writing and received by NASA on or before the 15th day following 
receipt of the notice, and include a statement of the reasons for such 
hearing. No particular form is required, and a timely, legible letter 
request (with the stated reasons) will suffice; however, the employee 
must sign the petition and include with it, with reasonable specificity, 
all the supporting facts and evidence, including a list of the 
witnesses, if any.
    (2) The petition should be addressed to the agency counsel 
designated in the notice, but the hearing will be conducted by an 
official not under the supervision or control of the NASA Administrator 
or by appointment of an administrative law judge. Notice of the name and 
address of the hearing official will be sent to the employee within 10 
days of receipt of petition. A hearing official will be designated on a 
case-by-case basis under reimbursable arrangements or through direct 
payment as events may warrant.
    (3) The timely filing of the petition will stay the commencement of 
collection; and the final decision on the hearing will be issued at the 
earliest practicable date, but not later than 60 days after the filing 
of the petition requesting the hearing unless the employee requests and 
the hearing official grants a delay in the proceedings.
    (4) Any knowingly false or frivolous statements, representations, or 
evidence may subject the employee to:
    (i) Disciplinary procedures appropriate under Chapter 75 of Title 5, 
United States Code, 5 CFR part 752, or any other applicable statutes or 
regulations;
    (ii) Penalties under the False Claims Act, sections 3729 through 
3731 of Title 31, United States Code, or any other applicable statutory 
authority; or
    (iii) Criminal penalties under sections 286, 287, 1001, and 1002 of 
Title 18, United States Code, or any other applicable statutory 
authority.
    (5) The form and content of the hearing will be determined by the 
hearing official depending on the nature and complexity of the 
transaction giving

[[Page 365]]

rise to the debt. The hearing is not an adversarial adjudication, and 
need not take the form of an evidentiary hearing. However, depending on 
the particular facts and circumstances, the hearing may be analogous to 
a fact- finding proceeding with oral presentations; or an informal 
meeting with or interview of the employee; or formal written 
submissions, with an opportunity for oral presentation, and decision 
based on the available written record. Ordinarily, hearings may consist 
of informal conferences before the hearing official in which the 
employee and agency officials will be given full opportunity to present 
evidence, witnesses, and argument. The employee may represent himself or 
herself or be represented by an individual of his or her choice. The 
hearing official must maintain a summary record of the hearing provided 
under this subpart. For additional guidance, see 14 CFR 1261.503.
    (6) The decision will be in writing and state:
    (i) The facts purported to evidence the nature and origin of the 
alleged debt;
    (ii) The respective positions of the agency and of the employee;
    (iii) The hearing official's analysis (which address the employee's/
agency's grounds, the amount and validity of the alleged debt, and, 
where applicable, the repayment schedule); and
    (iv) The hearing official's findings and conclusions.
    (7) The hearing official will notify the employee, the NASA 
Comptroller or designee, and the designated agency counsel of the 
decision.
    (8) The decision of the hearing official shall constitute the Final 
Administrative Decision of the agency.
    (d) Petition after time expiration. No petition for a hearing is to 
be granted if made after the 15-day period prescribed in paragraph 
(c)(1) of this section, unless the employee can show to the satisfaction 
of the agency official indicated on the notice that the delay was caused 
by circumstances beyond his or her control (for example, proven 
incapacity, illness, or hospitalization), or that the agency did not 
give notice of the time limit and the employee was otherwise unaware of 
such limit.
    (e) Limitation on amount and duration of deductions. Ordinarily, 
debts must be collected in one lump-sum payment. However, if the 
employee is financially unable to pay in one lump sum or if the amount 
of the debt exceeds 15 percent of disposable pay for an officially 
established pay interval, collection must be made in installments. The 
size of installment deductions must bear a reasonable relationship to 
the size of the debt and the employee's ability to pay (see 14 CFR 
1261.411), but the amount deducted for any period must not exceed 15 
percent of the disposable pay from which the deduction is made (unless 
the employee has agreed in writing to the deduction of a greater 
amount). Deduction must commence with the next full pay interval 
(ordinarily, the next biweekly pay period). Such installment deductions 
must be made over a period not greater than the anticipated period of 
active duty or employment, as the case may be, except as provided in 
paragraph (f) of this section.
    (f) Determining ability to pay. An offset may produce an extreme 
financial hardship for an employee if it prevents the employee from 
meeting costs necessarily incurred for essential subsistence expenses 
for food, reasonable housing, clothing, transportation, and medical 
care. In determining whether an offset would prevent the employee from 
meeting the essential subsistence expenses, the employee may be required 
to show income from all sources (including spouse and dependents, if 
applicable), list all known assets, explain exceptional expenses, and 
produce any other relevant factors.
    (g) Liquidation from final check; other recovery. If the employee 
retires or resigns from Federal service, or if his or her employment or 
period of active duty ends before collection of the debt is completed, 
the balance may be deducted from the final salary payment and any 
remaining balance from the lump-sum leave, if applicable. If the debt is 
not fully paid by offset from any final payment due the former employee 
as of the date of separation, offset may be made from later payments of 
any kind due the former employee from the United States (as provided in

[[Page 366]]

14 CFR part 1261 subpart 1261.5, including offset from the Civil Service 
Retirement and Disability Fund under 14 CFR 1261.507).
    (h) Interest, penalties, and administrative costs. Assessment of 
interest, penalties, and administrative costs, on debts being collected 
under this subpart, shall be in accordance with 14 CFR 1261.412 which 
implements 4 CFR 102.13.



Sec. 1261.604  Nonwaiver of rights by involuntary setoff.

    The employee's involuntary payment of all or any portion of the 
debt, being collected under this subpart, must not be construed as a 
waiver of any rights which the employee may have under an existing 
written contract applicable to the specific debt or under any other 
pertinent statutory authority for the collection of claims of the United 
States or the agency.



Sec. 1261.605  Refunds.

    (a) NASA will promptly refund to the employee amounts paid or 
deducted under this subpart when:
    (1) A debt is waived or otherwise found not owing the United States 
(unless expressly prohibited by statute or regulation); or
    (2) The employee's paying agency is directed by an administrative or 
judicial order to refund amounts deducted from his or her current pay.
    (b) Refunds are not to bear any interest unless the law applicable 
to that particular debt specifically requires or permits a stated 
interest amount on refunds.



Sec. 1261.606  Salary offset request by a creditor agency other than NASA (the current paying agency).

    (a) Format of the request. Upon completion of the procedures 
established by the creditor agency under 5 U.S.C. 5514, the creditor 
agency must:
    (1) Certify, in writing, that the employee owes the debt, the amount 
and basis of the debt, the date on which payment(s) is/are due, the date 
the Government's right to collect the debt first accrued, and that the 
creditor agency's regulations implementing 5 U.S.C. 5514 have been 
approved by OPM;
    (2) If the collection must be made in installments, the creditor 
agency must also advise NASA of the number of installments to be 
collected, the amount of each installment, and the commencing date of 
the first installment, if a date other than the next officially 
established pay period is required; and
    (3) Unless the employee has consented to the salary offset in 
writing or signed a statement acknowledging receipt of the required 
procedures and the writing or statement is attached to the debt claim 
request, the creditor agency must also indicate the action(s) taken 
under 5 U.S.C. 5514(a)(2) and give the date(s) the action(s) was/were 
taken.
    (b) Limitation period. The creditor agency may not initiate offset 
to collect a debt more than 10 years after the Government's right to 
collect the debt first accrued, except as provided in 14 CFR 1261.506, 
which implements 4 CFR 102.3(b)(3).
    (c) Employees who are separating or have separated--(1) Employees 
who are in the process of separating. If the employee is in the process 
of separating, the creditor agency must submit its debt claim to the 
employee's paying agency for collection as provided in 5 CFR 550.1104(1) 
of the OPM regulations (14 CFR 1261.603(f)) for ``liquidation from final 
check.'' NASA must then certify the total amount of its collection and 
notify the creditor agency and the employee as provided in paragraph 
(c)(3) of this section. If NASA is aware that the employee is entitled 
to payments from the Civil Service Retirement and Disability Fund, or 
other similar payments, it should notify the creditor agency and forward 
the copy of the debt claim and certification to the agency responsible 
for making such payments as notice that a debt is outstanding. However, 
the creditor agency, not NASA, must submit a properly certified claim to 
the agency responsible for making such payments before collection can be 
made.
    (2) Employees who have already separated. If the employee is already 
separated and all payments due from NASA have been paid, NASA must 
return the claim to the creditor agency for any

[[Page 367]]

further collection, indicating the employee's date of separation and the 
current employment and mailing address(es), if known.
    (3) Employee who transfers from NASA to another Federal agency.
    (i) Certification of amount collected. If, after the creditor agency 
has submitted the debt claim to NASA, the employee transfers to another 
Federal agency before the debt is collected in full, NASA must then 
certify the total amount of the collection made on the debt. A copy of 
the certification should be furnished the employee, and another copy 
furnished to the creditor agency along with notice of the employee's 
transfer.
    (ii) Official personnel folder insertion; new paying agency. 
Information on the debt claim must be inserted in the employee's 
official personnel folder along with a copy of the certification of the 
amount which has been collected. Upon receiving the official personnel 
folder, the new paying agency must resume the collection from the 
employee's current pay account and notify the employee and the creditor 
agency of the resumption. It will not be necessary for the creditor 
agency to repeat the due process procedures described by 5 U.S.C. 5514 
of this subpart in order to resume the collection. However, it will be 
the responsibility of the creditor agency to review the debt upon 
receiving NASA's notice of the employee's transfer to make sure the 
collection is resumed by the new paying agency.
    (d) Processing the debt claim upon receipt--(1) Incomplete claim. If 
NASA receives incomplete debt claim information, it must return the 
request with a notice that procedures under 5 U.S.C. 5514 and this 
subpart must be provided and complete debt claim information received 
before action will be taken to collect from the employee's current pay 
account.
    (2) Complete claim. If NASA receives a properly documented debt 
claim, deductions should be scheduled to begin prospectively at the next 
officially established pay interval. A copy of the debt claim request 
must be given to the debtor, along with notice of the date deductions 
will commence if different from that stated on the debt claim request.
    (3) NASA is not required or authorized to review the merits of the 
creditor agency's determination with respect to the amount or validity 
of the debt as stated in the debt claim request.



Sec. 1261.607  Obtaining the services of a hearing official.

    (a) When the debtor does not work for the creditor agency and the 
creditor agency cannot provide a prompt and appropriate hearing before 
an administrative law judge or before a hearing official furnished 
pursuant to another lawful arrangement, the creditor agency may contact 
an agent of the paying agency designated in appendix A of 5 CFR part 581 
to arrange for a hearing official, and the paying agency must then 
cooperate as provided by 4 CFR 102.1 and provide a hearing official.
    (b) When the debtor works for the creditor agency, the creditor 
agency may contact any agent (of another agency) designated in appendix 
A of 5 CFR part 581 to arrange for a hearing official. Agencies must 
then cooperate as required by 4 CFR 102.1 and provide a hearing 
official.



PART 1262--EQUAL ACCESS TO JUSTICE ACT IN AGENCY PROCEEDINGS--Table of Contents




                   Subpart 1262.1--General Provisions

Sec.
1262.101 Purpose of these rules.
1262.102 When the Act applies.
1262.103 Proceedings covered.
1262.104 Eligibility of applicants.
1262.105 Standards for awards.
1262.106 Allowable fees and expenses.
1262.107 Rulemaking on maximum rates for attorney fees.
1262.108 Awards against other agencies.
1262.109 Delegations of authority.

          Subpart 1262.2--Information Required From Applicants

1262.201 Contents of application.
1262.202 Net worth exhibit.
1262.203 Documentation of fees and expenses.
1262.204 When an application may be filed.

[[Page 368]]

         Subpart 1262.3--Procedures for Considering Applications

1262.301 Filing and service of documents.
1262.302 Answer to application.
1262.303 Reply.
1262.304 Comments by other parties.
1262.305 Settlement.
1262.306 Further proceedings.
1262.307 Decision.
1262.308 Agency review.
1262.309 Judicial review.
1262.310 Payment of award.

    Authority: 5 U.S.C. 504; 42 U.S.C. 2473(c)(1).

    Source: 51 FR 15311, Apr. 23, 1986, unless otherwise noted.



                   Subpart 1262.1--General Provisions



Sec. 1262.101  Purpose of these rules.

    (a) The pertinent provisions of the Equal Access to Justice Act at 5 
U.S.C. 504 (hereinafter ``the Act'') provide for the award of attorney 
fees and other expenses to eligible individuals and entities who are 
parties to certain administrative proceedings (called ``adversary 
adjudications''). An eligible party may receive an award when it 
prevails, unless it has unreasonably protracted the proceedings, or the 
Agency's position in the proceeding was substantially justified, or 
special circumstances make an award unjust. The rules in this part 
describe the parties eligible for awards and the proceedings that are 
covered. They also explain how to apply for awards, and the procedures 
and standards that the National Aeronautics and Space Administration 
(NASA) will use in determining awards.
    (b) As used in this part:
    (1) Adversary adjudication means:
    (i) An adjudication under 5 U.S.C. 554 in which the position of the 
United States is represented by counsel or otherwise, but excludes an 
adjudication for the purpose of establishing or fixing a rate or for the 
purpose of granting or renewing a license;
    (ii) Any appeal of a decision made pursuant to section 6 of the 
Contract Disputes Act (CDA) of 1978, as amended (41 U.S.C. 605) before 
an agency board of contract appeals as provided in section 8 of the CDA 
(41 U.S.C. 607);
    (iii) Any hearing conducted under Chapter 38 of Title 31 (added by 
section 6104 of the Program Fraud Civil Remedies Act of 1986 (Pub. L. 
99-509, 100 Stat. 1948, Oct. 21, 1986), 31 U.S.C. 3801, et seq., as 
amended); and
    (iv) The Religious Freedom Restoration Act (RFRA) of 1993 (added by 
section 4(b), of RFRA (Pub. L. 103-141, 107 Stat. 1489, Nov. 16, 1993), 
42 U.S.C. 2000bb).
    (2) Adjudicative officer means the deciding official, without regard 
to whether the official is designated an administrative law judge, a 
hearing officer or examiner, or otherwise, who presided at the adversary 
adjudication;
    (3) Position of the agency means, in addition to the position taken 
by the agency in the adversary adjudication, the action or failure to 
act by the agency upon which the adversary adjudication is based;
    (4) Party, as defined in 5 U.S.C. 551(3), includes a person or 
agency named or admitted as a party, or properly seeking and entitled as 
of right to be admitted as a party, in an agency proceeding, and a 
person or agency admitted by an agency as a party for limited purposes, 
and who meets the eligibility requirements of Sec. 1262.104; and
    (5) Agency with a capital A denotes the NASA.
    (c) Determination of Substantially justified. Whether or not the 
position of the agency was substantially justified shall be determined 
on the basis of the administrative record, as a whole, which is made in 
the adversary adjudication for which fees and other expenses are sought.

[51 FR 15311, Apr. 23, 1986, as amended at 60 FR 12668, Mar. 8, 1995]



Sec. 1262.102  When the Act applies.

    The Act applies to any adversary adjudication pending or commenced 
before NASA on or after August 5, 1985. It also applies to any adversary 
adjudication commenced on or after October 1, 1984, and finally disposed 
of before August 5, 1985, provided that an application for fees and 
expenses, as described in subpart 1262.2, had been filed with the Agency 
within 30 days after August 5, 1985, and to any adversary adjudication 
pending on or commenced on or after October 1, 1981, in which an 
application for fees and other expenses was timely filed and was 
dismissed for lack of jurisdiction.

[[Page 369]]



Sec. 1262.103  Proceedings covered.

    (a) The Act applies to the following adversary adjudications 
conducted by the Agency:
    (1) Adjudications under 5 U.S.C. 554 in which the position of NASA 
or any other agency of the United States, or any component of an agency, 
is presented by an attorney or other representative who enters an 
appearance and participates in the proceedings;
    (2) Appeals of decisions made pursuant to section 6 of the Contract 
Disputes Act of 1978 (41 U.S.C. 605) before the Board of Contract 
Appeals (BCA) as provided in Section 8 of that Act (41 U.S.C. 607);
    (3) Any hearing conducted under Chapter 38 of Title 31 (31 U.S.C. 
3801, et seq., as amended); and
    (4) Adjudications under the Religious Freedom Restoration Act of 
1993 (42 U.S.C. 2000bb).
    (b) The Act does not apply to:
    (1) Any proceeding in which this Agency may prescribe a lawful 
present or future rate;
    (2) Proceedings to grant or renew licenses (note, however, that 
proceedings to modify, suspend, or revoke licenses are covered if they 
are otherwise adversary adjudications); and
    (3) Proceedings which are covered by a compromise or settlement 
agreement, unless specifically consented to in such agreement.
    (c) NASA may also designate a proceeding as an adversary 
adjudication for purposes of the Act by so stating in an order 
initiating the proceeding or designating the matter for hearing. The 
Agency's failure to designate a proceeding as an adversary adjudication 
shall not preclude the filling of an application by a party who believes 
the proceeding is covered by the Act; whether the proceeding is covered 
will then be an issue for resolution in proceedings on the application.
    (d) If a proceeding includes both matters covered by the Act and 
matters specifically excluded from coverage, any award made will include 
only fees and expenses related to covered issues.

[60 FR 12668, Mar. 8, 1995]



Sec. 1262.104  Eligibility of applicants.

    (a) To be eligible for an award of attorney fees and other expenses, 
the applicant must be a ``party'' to the adversary adjudication for 
which an award is sought. The applicant must show that it meets all 
conditions of eligibility set out in this subpart and in subpart 1262.2.
    (b) The types of eligible applicants are as follows:
    (1) An individual with a net worth of not more than $2 million;
    (2) Any owner of an unincorporated business who has a net worth of 
not more than $7 million, including both personal and business 
interests, and not more than 500 employees;
    (3) A charitable or other tax-exempt organizaiton described in 
section 501(c)(3) of the Internal Revenue Code (26 U.S.C. 501(c)(3)) 
with not more than 500 employees;
    (4) A cooperative association as defined in section 15(a) of the 
Agricultural Marketing Act (12 U.S.C. 1141j(a)) with not more than 500 
employees; and
    (5) Any other partnership, corporation, association, unit of local 
government, or organization with a net worth of not more than $7 million 
and not more than 500 employees.
    (c) For the purpose of eligibility, the net worth and number of 
employees of an applicant shall be determined as of the date the 
proceeding was initiated.
    (d) An applicant who owns an unincorporated business will be 
considered as an ``individual'' rather than as a ``sole owner of an 
unincorporated business'' if the issues on which the applicant prevails 
are related primarily to personal interests rather then to business 
interests.
    (e) The employees of an applicant include all persons who regularly 
perform services for remuneration for the applicant, under the 
applicant's direction and control. Part-time employees shall be included 
on a proportional basis.
    (f) The net worth and number of employees of the applicant and all 
of its affiliates shall be aggregated to determine eligibility. Any 
individual, corporation, or other entity that directly or indirectly 
controls or owns a majority of the voting shares or other interest of 
the applicant, or any corporation

[[Page 370]]

or other entity of which the applicant directly or indirectly owns or 
controls a majority of the voting shares or other interest, will be 
considered an affiliate for purposes of this part, unless the 
adjudicative officer determines that such treatment would be unjust and 
contrary to the purposes of the Act in light of the actual relationship 
between the affiliated entities. In addition, the adjudicative officer 
may determine that financial relationships of the applicant other than 
those described in this paragraph constitute special circumstances that 
would make an award unjust.
    (g) An applicant that participates in a proceeding primarily on 
behalf of one or more other persons or entities that would be ineligible 
is not itself eligible for an award.

[51 FR 15311, Apr. 23, 1986, as amended at 60 FR 12668, Mar. 8, 1995]



Sec. 1262.105  Standards for awards.

    (a) A prevailing applicant may receive an award subject to paragraph 
(b) of this section, for fees and expenses incurred in connection with a 
proceeding, or in a significant and discrete substantive portion of the 
proceeding, unless the position of the agency over which the applicant 
has prevailed was substantially justified. No presumption arises that 
the agency's position was not substantially justified simply because the 
agency did not prevail. The burden of proof that an award should not be 
made to an eligible prevailing applicant is on the agency.
    (b) An award, for any portion of the adversary adjudication, will be 
denied if the applicant has unreasonably protracted the proceedings, or 
denied or reduced if special circumstances make the award sought unjust.



Sec. 1262.106  Allowable fees and expenses.

    (a) Awards will be based on rates customarily charged by persons 
engaged in the business of acting as attorneys, agents, and expert 
witnesses, even if the services were made available without charge or at 
a reduced rate to the applicant.
    (b) No award for the fee of an attorney or agent under these rules 
may exceed $75 per hour. No award to compensate an expert witness may 
exceed the highest rate at which this Agency pays expert witnesses, 
which is $20 an hour (5 hours maximum) or maximum daily rate of $100 (3 
days maximum). However, an award may also include the reasonable 
expenses of the attorney, agent, or witness as a separate item, if the 
attorney, agent, or witness ordinarily charges clients separately for 
such expenses.
    (c) In determining the reasonableness of the fee sought for an 
attorney, agent, or expert witness, the adjudicative officer shall 
consider the following:
    (1) If the attorney, agent, or witness is in private practice, his 
or her customary fee for similar service, or, if an employee of the 
applicant, the fully allocated cost of the services;
    (2) The prevailing rate for similar services in the community in 
which the attorney, agent, or witness ordinarily performs services;
    (3) The time actually spent in the representation of the 
application;
    (4) The time reasonably spent in light of the difficulty or 
complexity of the issues in the proceeding; and
    (5) Such other factors as may bear on the value of the services 
provided.
    (d) The reasonable cost of any study, analysis, engineering report, 
test, project, or similar matter prepared on behalf of a party may be 
awarded, to the extent that the charge for the service does not exceed 
the prevailing rate for similar services, and the study or other matter 
was necessary for preparation of the applicant's case.



Sec. 1262.107  Rulemaking on maximum rates for attorney fees.

    (a) If warranted by an increase in the cost of living or by special 
circumstances (such as limited availability of attorneys qualified to 
handle certain types of proceedings), the Agency may adopt regulations 
providing that attorney fees may be awarded at a rate higher then $75 
per hour in some or all of the types of proceedings covered by this 
part. This Agency will conduct any rulemaking proceedings for this 
purpose under the informal rulemaking procedures of the Administrative 
Procedure Act (5 U.S.C. 553).

[[Page 371]]

    (b) Any person may file with the Agency a petition for rulemaking to 
increase the maximum rate for attorney fees. The petition should be 
addressed to the General Counsel, NASA Headquarters, Washington, DC 
20546; should identify the rate the petitioner believes the Agency 
should establish and the types of proceedings in which the rate should 
be used; and should also explain fully the reasons why the higher rate 
is warranted. The Agency will respond to the petition within 60 days 
after it is filed, by initiating a rulemaking proceeding or denying the 
petition, or taking other appropriate action.



Sec. 1262.108  Awards against other agencies.

    If an applicant is entitled to an award because it prevails over 
another agency of the United States that participates in a proceeding 
before NASA, the award or an appropriate portion of the award shall be 
made against that agency, subject to Sec. 1262.105(b), if it had taken 
a position that is not substantially justified.



Sec. 1262.109  Delegations of authority.

    (a) The NASA Administrator hereby delegates authority to the General 
Counsel or designee to take final action on matters pertaining to the 
Act, other than the authority for final fee determination after Agency 
review pursuant to Sec. 1262.308.
    (b) The NASA Administrator may, in particularly specified matters 
under the Act, delegate authority to officials other than those 
designated in paragraph (a) of this section.



          Subpart 1262.2--Information Required From Applicants



Sec. 1262.201  Contents of application.

    (a) An application for an award of fees and expenses under the Act 
shall identify the applicant and the proceeding for which an award is 
sought. The application shall show that the applicant has prevailed and 
identify the position of an agency or agencies in the proceeding that 
the applicant alleges was not substantially justified. Unless the 
applicant is an individual, the application shall also state the number 
of employees of the applicant and describe briefly the type and purpose 
of its organization or business.
    (b) The application shall also include a statement that the 
applicant's net worth does not exceed $2 million (if an individual) or 
$7 million (for all other applicants, including their affiliates). 
However, an applicant may omit this statement if the applicant:
    (1) Attaches a copy of a ruling by the Internal Revenue Service that 
it qualifies as an organization described in section 501(c)(3) of the 
Internal Revenue Code (26 U.S.C. 501(c)(3)), or, in the case of a tax-
exempt organization not required to obtain a ruling from the Internal 
Revenue Service on its exempt status, a statement that describes the 
basis for the applicant's belief that it qualifies under such section; 
or
    (2) States that it is a cooperative association as defined in 
section 15(a) of the Agricultural Marketing Act (12 U.S.C. 1141j(a)).
    (c) The application shall state the amount of fees and expense for 
which an award is sought.
    (d) The application may also include any other matters that the 
applicant wishes this Agency to consider in determing whether and in 
what amount an award should be made.
    (e) The application shall be signed by the applicant or an 
authorized officer or attorney of the applicant. It shall also contain 
or be accompanied by a written verification under oath or under penalty 
of perjury that the information provided in the application is true and 
correct.



Sec. 1262.202  Net worth exhibit.

    (a) Each applicant except a qualified tax-exempt organization or 
cooperative association must provide with its application a detailed 
exhibit showing the net worth of the applicant and any affiliates (as 
defiined in Sec. 1262.104(f) when the proceeding was initiated. The 
exhibit may be in any form convenient to the applicant that provides 
full disclosure of the applicant's and its affiliates' assets and 
liabilities and is sufficient to determine whether the applicant 
qualifies under the standards in this part. The adjudicative officer may 
require an applicant to file additional

[[Page 372]]

information to determine its eligibility for an award.
    (b) Ordinarily, the net worth exhibit will be included in the public 
records of the proceeding. However, an applicant that objects to public 
disclosure of information in any portion of the exhibit and believes 
there are legal grounds for withholding it from disclosure may submit 
that portion of the exhibit directly to the adjudicative officer in a 
sealed envelope labeled ``Confidential Financial Information,'' 
accompanied by a motion to withhold the information from public 
disclosure. The motion shall describe the information sought to be 
withheld and explain, in detail, why it falls within one or more of the 
specific exemptions from mandatory disclosure under the Freedom of 
Information Act, 5 U.S.C. 552(b)(1)-(9), why public disclosure of the 
information would adversely affect the applicant, and why disclosure is 
not required in the public interest. The materials in question shall be 
served on counsel representing the agency against which the applicant 
seeks an award, but need not be served on any other party to the 
proceeding. If the adjudicative officer finds that the information 
should not be withheld from disclosure, it shall be placed in the public 
record of the proceeding. Otherwise, any request to inspect or copy the 
exhibit shall be disposed of in accordance with the Agency's regulations 
under the Freedom of Information Act, at 14 CFR part 1206.



Sec. 1262.203  Documentation of fees and expenses.

    The application shall be accompanied by full documentation of the 
fees and expenses, including the cost of any study, analysis, 
engineering report, test, project, or similar matter for which an award 
is sought. A separate itemized statement, accompanied by an oath of 
affirmation under penalty of perjury (28 U.S.C. 1746), shall be 
submitted for each professional firm or individual whose services are 
covered by the application, showing the hours spent in connection with 
the proceeding by each individual, a description of the specific 
services performed, the rate at which each fee has been computed, any 
expenses for which reimbursement is sought, the total amount paid or 
payable by the applicant or by any other person or entity for the 
services provided. The adjudicative officer may, in addition, require 
the applicant to provide vouchers, receipts, or other substantiation for 
any expenses claimed.



Sec. 1262.204  When an application may be filed.

    (a) An application may be filed whenever the applicant has prevailed 
in the proceeding or in a significant and discrete substantive portion 
of the proceeding, but in no case later than 30 days after the Agency's 
final disposition of the proceeding.
    (b) If review or reconsideration is sought or taken of a decision as 
to which an applicant believes it has prevailed, proceedings for the 
award of fees shall be stayed pending final disposition of the 
underlying controversy.
    (c) For purposes of this rule, final disposition means the latter 
of:
    (1) The date on which the last ``initial decision'', in a bifurcated 
proceeding, or other recommended disposition of the merits (both as to 
liability and amount, if applicable) of the proceeding, by an 
adjudicative officer or intermediate reviewer, becomes administratively 
final;
    (2) The date on which an order is issued disposing of any petitions 
for reconsideration;
    (3) If no petition for reconsideration is filed, the last date on 
which such a petition could have been filed; or
    (4) The date of a final order or any other final resolution of the 
proceeding, such as a settlement or a voluntary dismissal, which is not 
subject to a petition for reconsideration.



         Subpart 1262.3--Procedures for Considering Applications



Sec. 1262.301  Filing and service of documents.

    Any application for an award or other pleading or document related 
to an application shall be filed and served on all parties to the 
proceeding in the same manner as other pleadings in the proceeding, 
except as provided in Sec. 1262.202(b) for confidential financial 
information.

[[Page 373]]



Sec. 1262.302  Answer to application.

    (a) Within 30 calendar days after service of an application, counsel 
representing the agency against which an award is sought may file an 
answer to the application. Unless agency counsel requests an extension 
of time for filing or files a statement of intent to negotiate under 
paragraph (b) of this section, failure to file an answer within the 30-
day period may be treated as a consent to the award requested.
    (b) If agency counsel and the applicant believe that the issues in 
the fee application can be settled, they may jointly file a statement of 
their intent to negotiate a settlement. The filing of this statement 
shall extend the time for filing an answer for an additional 30 calendar 
days, and further extensions may be granted by the adjudicative officer 
upon request by agency counsel and the applicant.
    (c) The answer shall explain in detail any objections to the award 
requested and identify the facts relied on in support of agency 
counsel's position. If the answer is based on any alleged facts not 
already in the record of the proceeding, agency counsel shall include 
with the answer either supporting affidavits or a request for further 
proceedings under Sec. 1262.306.



Sec. 1262.303  Reply.

    Within 15 calendar days after service of an answer, the applicant 
may file a reply. If the reply is based on any alleged facts not already 
in the record of the proceeding, the applicant shall include with the 
reply either supporting affidavits or a request for further proceedings 
under Sec. 1262.306.



Sec. 1262.304  Comments by other parties.

    Any party to a proceeding other than the applicant and agency 
counsel may file comments about an application within 30 calendar days 
after it is served, or about an answer within 15 calendar days after it 
is served. A commenting party may not participate further in proceedings 
on the application unless the adjudicative officer determines that the 
public interest requires such participation in order to permit full 
exploration of matters raised in the comments.



Sec. 1262.305  Settlement.

    The applicant and agency counsel may agree on a proposed settlement 
of the award before final action on the application, either in 
connection with a settlement of the underlying proceeding, or after the 
underlying proceeding has been concluded. If a prevailing party and 
agency counsel agree on a proposed settlement of an award before an 
application has been filed, the application shall be filed with the 
proposed settlement.



Sec. 1262.306  Further proceedings.

    (a) Ordinarily, the determination of an award will be made on the 
basis of the written record. However, on request of either the applicant 
or agency counsel, or on his or her own initiative, the adjudicative 
officer may order further proceedings, such as an informal conference, 
oral argument, additional written submissions, or, as to issues other 
than substantial justification (such as the applicant's eligibility or 
substantiation of fees and expenses), pertinent discovery or an 
evidentiary hearing. Such further proceedings shall be held only when 
necessary for full and fair resolution of the issues arising from the 
application, and shall be conducted as promptly as possible.
    (b) A request that the adjudicative officer order further 
proceedings under this section shall specifically identify the 
information sought or the disputed issues and shall explain why the 
additional proceedings are necessary to resolve the issues.



Sec. 1262.307  Decision.

    (a) The adjudicative officer shall issue an initial decision on the 
application with 90 calendar days after completion of proceedings on the 
application. The decision shall include written findings and conclusions 
on such of the following as are relevant to the decision:
    (1) The applicant's eligibility and status as a prevailing party;
    (2) Whether the Agency's position was substantially justified;
    (3) Whether the applicant unreasonably protracted the proceedings, 
or whether special circumstances make an award unjust; and

[[Page 374]]

    (4) The amounts, if any, awarded for fees and expenses with an 
explanation of the reasons for any difference between the amount 
requested and the amount awarded. Further, if the applicant has sought 
an award against more than one agency, the decision shall allocate 
responsibility for payment of any award made among the agencies, and 
shall explain the reasons for the allocation made.
    (b) When the Agency appeals the underlying merits of an adversary 
adjudication, no decision on an application for fees and other expenses 
in connection with that adversary adjudication shall be made until a 
final and unreviewable decision is rendered by the court on the appeal 
or until the underlying merits of the case have been finally determined 
pursuant to the appeal.

[51 FR 15311, Apr. 23, 1986, as amended at 60 FR 12669, Mar. 8, 1995]



Sec. 1262.308  Agency review.

    (a) Within 30 calendar days of the receipt of the adjudicative 
officer's initial decision on the fee application, either the applicant 
or agency counsel may seek Agency review of the decision; or, the NASA 
Administrator, upon the recommendation of the General Counsel or other 
designee, may decide to review the decision based on the record. Whether 
to review a decision is solely a matter within the discretion of the 
NASA Administrator. A 15-day notice of such review will be given the 
applicant and agency counsel, and a determination made not later than 45 
days from the date of notice. The Administrator may make a final 
determination concerning the application or remand the application to 
the adjudicative officer for further proceedings.
    (b) If neither the applicant nor agency counsel seek review, and the 
NASA Administrator does not on own initiative take a review, the 
adjudicative officer's initial decision on the fee application shall be 
the final administrative decision of the Agency 45 days after it is 
issued.



Sec. 1262.309  Judicial review.

    Judicial review of final Agency decisions on awards may be sought 
under 5 U.S.C. 504(c)(2), which provides: If a party other than the 
United States is dissatisfied with a determination of fees and other 
expenses made under [this part], that party may, within 30 days after 
the [final administrative] determination is made, appeal the 
determination to the court of the United States having jurisdiction to 
review the merits of the underlying decision of the agency adversary 
adjudication. The court's determination of any appeal heard under this 
[authority] shall be based solely on the factual record made before the 
agency. The court may modify the determination of fees and other 
expenses only if the court finds that the failure to make an award of 
fees and other expenses, or the calculation of the amount of the award, 
was unsupported by the substantial evidence.

[51 FR 15311, Apr. 23, 1986, as amended at 60 FR 12669, Mar. 8, 1995]



Sec. 1262.310  Payment of award.

    (a) An applicant seeking payment of an award shall submit to the 
paying agency a copy of the Agency's final decision granting the award, 
accompanied by a statement that the applicant will not seek review of 
the decision in the United States courts. The submission to NASA should 
be addressed as follows:

Director, Financial Management Division, NASA Headquarters, Washington, 
DC 20546.

    (b) The Agency will pay the amount awarded to the applicant within 
60 days, if feasible, unless judicial review of the award or of the 
underlying decision of the adversary adjudication has been sought by the 
applicant or any other party to the proceeding.



PART 1263--DEMAND FOR INFORMATION OR TESTIMONY SERVED ON AGENCY EMPLOYEES; PROCEDURES--Table of Contents




Sec.
1263.100 Purpose and scope.
1263.101 Definitions.
1263.102 Procedure when a demand is issued in a legal proceeding 
          involving the United States.
1263.103 Procedure when a demand is issued in a legal proceeding not 
          involving the United States.
1263.104 Production, disclosure, or testimony prohibited unless 
          approved.

[[Page 375]]

1263.105 Considerations in determining whether production or disclosure 
          should be made.
1263.106 Final decision of the General Counsel as to production, 
          disclosure, or appearance.
1263.107 Procedure to be followed when response to a demand is required 
          before the General Counsel or designate has reached a final 
          decision.
1263.108 Procedure in the event of an adverse ruling.
1263.109 Considerations in determining whether these procedures should 
          be waived.
1263.110 Intention to provide guidance.

    Authority: 5 U.S.C. 301, 42 U.S.C. 2473(c)(1).

    Source: 55 FR 28370, July 11, 1990, unless otherwise noted.



Sec. 1263.100  Purpose and scope.

    (a) This part sets forth procedures to be followed with respect to 
the production or disclosure of official information or records and/or 
the testimony of present or former employees of the National Aeronautics 
and Space Administration relating to any official information acquired 
by any employee of NASA as part of the performance of that employee's 
official duties or by virtue of that employee's official status, where a 
demand for such production, disclosure, or testimony is issued in a 
federal, state, or other legal proceeding.
    (b) This part does not apply to any legal proceeding in which an 
employee is to testify, while in leave status, as to facts or events 
that are in no way related to the official duties of that employee or to 
the functions of the NASA.



Sec. 1263.101  Definitions.

    (a) Agency--As referred to in this regulation, Agency means the 
National Aeronautics and Space Administration.
    (b) Demand--A subpoena, order, or authorized request for official 
information, or for the appearance and testimony of NASA personnel, 
issued as the result of a legal proceeding.
    (c) Employee--Includes all present and former officers and employees 
of the National Aeronautics and Space Administration who are or have 
been appointed by, or subject to the supervision, jurisdiction, or 
control of the Administrator of the agency.
    (d) Legal proceeding--Includes any proceeding before a court of law 
or equity, administrative board or commission, hearing officer, or other 
body conducting a legal or administrative proceeding.
    (e) Legal proceeding involving the United States--Any proceeding 
before a court of law or equity brought on behalf of, or against the 
United States, NASA or NASA employees, and resulting from alleged NASA 
operations.
    (f) Official information--All information of any kind, however 
stored, that is in the custody and control of NASA or was acquired by 
NASA personnel as part of official duties or because of official status 
while such personnel were employed by or on behalf of the NASA.



Sec. 1263.102  Procedure when a demand is issued in a legal proceeding involving the United States.

    Whenever an employee or former employee of NASA receives a demand 
for production of materials or the disclosure of information, or for 
appearance and testimony as a witness in a legal proceeding in which 
NASA or the United States is a party, the employee shall immediately 
notify in writing the Installation Chief Counsel for Installation 
employees, the General Counsel for Headquarters employees, or the 
Attorney-Adviser to the Inspector General (IG) for IG employees. This 
notice must include copies of all pertinent legal documents and a 
summary of the employee's knowledge concerning the legal proceeding in 
question. When necessary, this information may be reported orally, 
followed by a written confirmation.



Sec. 1263.103  Procedure when a demand is issued in a legal proceeding not involving the United States.

    Whenever an employee or former employee of the Agency receives a 
demand for production or disclosure of official information in a legal 
proceeding not involving the United States, the employee shall 
immediately notify the General Counsel or designate. In addition, the 
party causing the demand to be issued shall furnish the Office of 
General Counsel a written, detailed statement of the information sought 
and its relevance to the proceeding in

[[Page 376]]

connection with which it is requested. The General Counsel or designate 
may waive the requirement that a written summary be furnished where he/
she deems it unnecessary. The election to waive the requirement of a 
written summary in no way constitutes a waiver of any other requirements 
set forth in this section.



Sec. 1263.104  Production, disclosure, or testimony prohibited unless approved.

    If an employee or former employee receives a demand to produce or 
disclose official information, that employee may not disclose such 
materials or information or testify regarding same without the prior 
approval of the General Counsel or designate.



Sec. 1263.105  Considerations in determining whether production or disclosure should be made.

    The General Counsel or designate shall direct employees to honor all 
valid demands. In deciding whether a particular demand is valid, the 
General Counsel or designate may consider:
    (a) Whether such disclosure or appearance is appropriate under the 
rules of procedure governing the legal proceeding in which the demand 
arose.
    (b) Whether disclosure is appropriate under the relevant substantive 
law concerning privilege.
    (c) Whether disclosure might improperly reveal trade secrets, or 
commercial or financial information that is confidential or privileged.
    (d) Whether disclosure might reveal classified information.
    (e) Whether disclosure would violate a specific applicable 
constitutional provision, federal statute or regulation, or executive 
order.
    (f) Whether appearance of the requested employee would seriously 
implicate an interest of the Agency such as conservation of employee 
time for conducting official business, avoidance of expending 
appropriated monies for non-federal purposes, or avoidance of involving 
the agency in controversial issues not related to its mission.



Sec. 1263.106  Final decision of the General Counsel as to production, disclosure, or appearance.

    After consideration of the factors enumerated in Sec. 1263.105 (a) 
through (f), the General Counsel or designate may authorize the 
testimony, disclosure, or production as demanded; limit the subject 
matter or extent of any testimony, disclosure, or production through 
written instruction to the employee; or deny permission for any 
testimony, disclosure, or production. Where appropriate, the General 
Counsel or designate may seek withdrawal of the demand by the 
authorizing party. Any decision of the General Counsel or designate 
shall be final and shall be communicated to the employee and the party 
causing the demand to be issued.



Sec. 1263.107  Procedure to be followed when response to a demand is required before the General Counsel or designate has reached a final decision.

    If a response to a demand is required before the General Counsel or 
designate can render a decision, the employee subpoenaed, or an agency 
attorney or other government attorney designated for that purpose, shall 
appear on behalf of the employee and shall furnish the authority which 
issued the demand a copy of these regulations, and inform the authority 
that the demand has been referred for the prompt consideration of the 
General Counsel, and shall respectfully request the authority to stay 
the demand until the General Counsel or designate has rendered a final 
decision.



Sec. 1263.108  Procedure in the event of an adverse ruling.

    If the court or other authority which caused the demand to be issued 
declines to stay the effect of the demand pending a final decision by 
the General Counsel or designate; or if the General Counsel or designate 
directs that the employee may not comply with the demand, and a court or 
other authority rules that the demand must be complied with irrespective 
of that decision, the employee upon whom the demand has been made, or an 
agency or other

[[Page 377]]

governmental attorney, shall respectfully decline to comply with the 
demand and shall cite, ``United States ex rel. Touhy v. Ragen, et al., 
340 U.S. 462 (1951).''



Sec. 1263.109  Considerations in determining whether these procedures should be waived.

    The General Counsel or designate may grant permission to deviate 
from the policy or procedure established in these regulations. 
Permission to deviate will be granted when the deviation will not 
interfere with matters of operational necessity and when:
    (a) It is necessary to prevent a miscarriage of justice; or
    (b) The deviation is in the best interests of NASA or the United 
States.



Sec. 1263.110  Intention to provide guidance.

    This part is intended to provide guidance for the internal operation 
of NASA and is not intended to, does not, and may not be relied upon to 
create any right of benefit--substantive or procedural--enforceable at 
law against the United States or NASA.



PART 1264--IMPLEMENTATION OF THE PROGRAM FRAUD CIVIL PENALTIES ACT OF 1986--Table of Contents




Sec.
1264.100 Basis and purpose.
1264.101 Definitions.
1264.102 Basis for civil penalties and assessments.
1264.103 Investigation.
1264.104 Review by the reviewing official.
1264.105 Prerequisites for issuing a complaint.
1264.106 Complaint.
1264.107 Service of complaint.
1264.108 Answer.
1264.109 Default upon failure to file an answer.
1264.110 Referral of complaint and answer to the presiding officer.
1264.111 Notice of hearing.
1264.112 Parties to the hearing.
1264.113 Separation of functions.
1264.114 Ex parte contacts.
1264.115 Disqualification of reviewing official or presiding officer.
1264.116 Rights of parties.
1264.117 Authority of the presiding officer.
1264.118 Prehearing conferences.
1264.119 Disclosure of documents.
1264.120 Discovery.
1264.121 Exchange of witness lists, statements, and exhibits.
1264.122 Subpoena for attendance at hearing.
1264.123 Protective order.
1264.124 Fees.
1264.125 Form, filing, and service of papers.
1264.126 Computation of time.
1264.127 Motions.
1264.128 Sanctions.
1264.129 The hearing and burden of proof.
1264.130 Determining the amount of penalties and assessments.
1264.131 Location of hearing.
1264.132 Witnesses.
1264.133 Evidence.
1264.134 The record.
1264.135 Post-hearing briefs.
1264.136 Initial decision.
1264.137 Reconsideration of initial decision.
1264.138 Appeal to authority head.
1264.139 Stays ordered by the Department of Justice.
1264.140 Stay pending appeal.
1264.141 Judicial review.
1264.142 Collection of civil penalties and assessments.
1264.143 Right to administrative offset.
1264.144 Deposit in Treasury of United States.
1264.145 Compromise or settlement.
1264.146 Limitations.

Appendix A to Part 1264--Notice To Consent to the Chairperson, NASA 
          Board of Contract Appeals (BCA), or Designee, as Presiding 
          Officer

    Authority: 31 U.S.C. 3809, 42 U.S.C. 2473(c)(1).

    Source: 52 FR 39498, Oct. 22, 1987, unless otherwise noted.



Sec. 1264.100  Basis and purpose.

    (a) Basis. This part implements the Program Fraud Civil Remedies Act 
of 1986, Pub. L. 99-509, sections 6101-6104, 100 Stat. 1874 (October 21, 
1986), to be codified at 31 U.S.C. 3801-3812. 31 U.S.C. 3809 of the 
statute requires each authority head to promulgate regulations necessary 
to implement the provisions of the statute.
    (b) Purpose. This part does the following:
    (1) Establishes administrative procedures for imposing civil 
penalties and assessments against persons who make, submit, or present, 
or cause to be made, submitted, or presented, false, fictitious, or 
fraudulent claims or written statements to authorities or to their 
agents; and
    (2) Specifies the hearing and appeal rights of persons subject to 
allegations

[[Page 378]]

of liability for such penalties and assessments.



Sec. 1264.101  Definitions.

    (a) ALJ means an Administrative Law Judge in the authority appointed 
pursuant to 5 U.S.C. 3105 or detailed to the authority pursuant to 5 
U.S.C. 3344. For purposes of this part, the ALJ shall be referred to as 
the presiding officer.
    (b) Authority means the National Aeronautics and Space 
Administration (NASA).
    (c) Authority head means the NASA Administrator or Deputy 
Administrator or designee. For purposes of this regulation, the NASA 
General Counsel or Deputy General Counsel is designated legal counsel to 
the Authority head.
    (d) Benefit means, in the context of statement, anything of value, 
including but not limited to any advantage, preference, privilege, 
license, permit, favorable decision, ruling, status, or loan guarantee.
    (e) Claim means any request, demand, or submission--
    (1) Made to the authority for property, services, or money 
(including money representing grants, loans, insurance, or benefits);
    (2) Made to a recipient of property, services, or money from the 
authority or to a party to a contract with the authority--
    (i) For property or services if the United States--
    (A) Provided such property or services;
    (B) Provided any portion of the funds for the purchase of such 
property or services; or
    (C) Will reimburse such recipient or party for the purchase of such 
property or services; or
    (ii) For the payment of money (including money representing grants, 
loans, insurance, or benefits) if the United States--
    (A) Provided any portion of the money requested or demanded; or
    (B) Will reimburse such recipient or party for any portion of the 
money paid on such request or demand; or
    (iii) Made to the authority which has the effect of decreasing an 
obligation to pay or account for property, services, or money.
    (f) Complaint means the administrative complaint served by the 
reviewing official on the defendant under Sec. 1264.106.
    (g) Consent hearing means that the authority and the defendant 
consent, as provided in Sec. 1264.106(c), that the presiding officer be 
the Chairperson of the NASA Board of Contract Appeals (BCA). The 
Chairperson may designate another administrative judge of the NASA BCA 
as presiding officer in a consent hearing.
    (h) Defendant means any person alleged in a complaint under Sec. 
1264.106 to be liable for a civil penalty or assessment under Sec. 
1264.102.
    (i) Government means the United States Government.
    (j) Individual means a natural person.
    (k) Initial decision means the written decision of the ALJ or 
presiding officer required by Sec. 1264.109 or Sec. 1264.136, and 
includes a revised initial decision issued following a remand or a 
motion for reconsideration.
    (l) Investigating official means the NASA Inspector General, or 
designee who is serving in a position for which the rate of basic pay is 
not less than the minimum rate of basic pay for grade GS-16 under the 
General Schedule.
    (m) Knows or has reason to know, means that a person with respect to 
a claim or statement--
    (1) Has actual knowledge that the claim or statement is false, 
fictitious, or fraudulent;
    (2) Acts in deliberate ignorance of the truth or falsity of the 
claim or statement; or
    (3) Acts in reckless disregard of the truth or falsity of the claim 
or statement.
    (n) Makes, wherever it appears, shall include the terms presents, 
submits, and causes to be made, presented, or submitted. As the context 
requires, making or made shall likewise include the corresponding forms 
of such terms.
    (o) Person means any individual, partnership, corporation, 
association, or private organization, and includes the plural of that 
term.
    (p) Presiding officer, except as provided for pursuant to consent 
trial notice, means (if the authority is not subject to the provisions 
of Subchapter II

[[Page 379]]

of Chapter 5, Title 5, U.S.C.) an officer or employee of the authority 
who--
    (1) Is selected under Chapter 33 of Title 5 pursuant to the 
competitive examination process applicable to administrative law judges;
    (2) Is appointed by the authority head to conduct hearings under 
this part;
    (3) Is assigned to cases in rotation so far as practicable;
    (4) May not perform duties inconsistent with the duties and 
responsibilities of a presiding officer;
    (5) Is entitled to pay prescribed by the Office of Personnel 
Management independently of ratings and recommendations made by the 
authority and in accordance with Chapter 51 of such Title and Subchapter 
III of Chapter 53 of such Title;
    (6) Is not subject to performance appraisal pursuant to Chapter 43 
of such Title; and
    (7) May be removed, suspended, furloughed, or reduced in grade or 
pay only for good cause established and determined by the Merit Systems 
Protection Board on the record after opportunity for hearing by such 
Board.
    (q) Representative means an attorney who is in good standing of the 
bar of any State, Territory, or possession of the United States, or of 
the District of Columbia, or of the Commonwealth of Puerto Rico.
    (r) Reviewing official means the NASA Associate Administrator for 
Management. For purposes of this regulation, the Associate General 
Counsel (General) or designee is designated legal counsel to the 
Reviewing official.
    (s) Statement means any representation, certification, affirmation, 
document, record, or accounting or bookkeeping entry made--
    (1) With respect to a claim or to obtain the approval or payment of 
a claim (including relating to eligibility to make a claim); or
    (2) With respect to (including relating to eligibility for)--
    (i) A contract with, or a bid or proposal for a contract with; or
    (ii) A grant, loan, or benefit from the authority, or any State, 
political subdivision of a State, or other party, if the United States 
Government provides any portion of the money or property under such 
contract or for such grant, loan, or benefit, or if the Government will 
reimburse such State, political subdivision, or party for any portion of 
the money or property under such contract or for such grant, loan, or 
benefit.

[52 FR 39498, Oct. 22, 1987, as amended at 54 FR 599, Jan. 9, 1989]



Sec. 1264.102  Basis for civil penalties and assessments.

    (a) Claims. (1) Any person who makes a claim that the person knows 
or has reason to know--
    (i) Is false, fictitious, or fraudulent;
    (ii) Includes or is supported by any written statement which asserts 
a material fact which is false, fictitious, or fraudulent;
    (iii) Includes or is supported by any written statement that--
    (A) Omits a material fact;
    (B) Is false, fictitious, or fraudulent as a result of such 
omission; and
    (C) Is a statement in which the person making such statement has a 
duty to include such material fact; or
    (iv) Is for payment for the provision of property or services which 
the person has not provided as claimed--

Shall be subject, in addition to any other remedy that may be prescribed 
by law, to a civil penalty of not more than $5,000 for each such claim.
    (2) Each voucher, invoice, claim form, or other individual request 
or demand for property, services, or money constitutes a separate claim.
    (3) A claim shall be considered made to the authority, recipient, or 
party when such claim is actually made to an agent, fiscal intermediary, 
or other entity, including any State or political subdivision thereof, 
acting for or on behalf of the authority, recipient, or party.
    (4) Each claim for property, services, or money is subject to a 
civil penalty regardless of whether such property, services, or money is 
actually delivered or paid.
    (5) If the Government has made any payment (including transferred 
property or provided services) on a claim, a person subject to a civil 
penalty under paragraph (a)(1) of this section shall also be subject to 
an assessment of not more than twice the amount of such

[[Page 380]]

claim or that portion thereof that is determined to be in violation. 
Such assessment shall be in lieu of damages sustained by the Government 
because of such claim.
    (b) Statements. (1) Any person who makes a written statement that--
    (i) The person knows or has reason to know--
    (A) Asserts a material fact which is false, fictitious, or 
fraudulent; or
    (B) Is false, fictitious, or fraudulent because it omits a material 
fact that the person making the statement has a duty to include in such 
statement; and
    (ii) Contains or is accompanied by an express certification or 
affirmation of the truthfulness and accuracy of the contents of the 
statement--

Shall be subject, in addition to any other remedy that may be prescribed 
by law, to a civil penalty of not more than $5,000 for each such 
statement.
    (2) Each written representation, certification, or affirmation 
constitutes a separate statement.
    (3) A statement shall be considered made to the authority when such 
statement is actually made to an agent, fiscal intermediary, or other 
entity, including any State or political subdivision thereof, acting for 
or on behalf of the authority.
    (c) No proof of specific intent to defraud is required to establish 
liability under this section.
    (d) In any case in which it is determined that more than one person 
is liable for making a claim or statement under this section, each such 
person may be held liable for a civil penalty under this section.
    (e) In any case in which it is determined that more than one person 
is liable for making a claim under this section on which the Government 
has made payment (including transferred property or provided services), 
an assessment may be imposed against any such person or jointly and 
severally against any combination of such persons.

[52 FR 39498, Oct. 22, 1987, as amended at 54 FR 599, Jan. 9, 1989]



Sec. 1264.103  Investigation.

    (a) If an investigating official concludes that a subpoena pursuant 
to the authority conferred by 31 U.S.C. 3804(a) is warranted--
    (1) The subpoena so issued shall notify the person to whom it is 
addressed of the authority under which the subpoena is issued and shall 
identify the records or documents sought;
    (2) The subpoena may designate the person, to act on the 
investigating official's behalf, to receive the documents sought; and
    (3) The person receiving such subpoena shall be required to tender 
to the investigating official or the person designated to receive the 
documents a certification that the documents sought have been produced, 
or that such documents are not available and the reasons therefor, or 
that such documents, suitably identified, have been withheld based upon 
the assertion of an identified privilege.
    (b) If the investigating official concludes that an action under the 
Program Fraud Civil Remedies Act may be warranted, the investigating 
official shall submit a report containing the findings and conclusions 
of such investigation to the reviewing official.
    (c) Nothing in this section shall preclude or limit the 
investigating official's discretion to refer allegations directly to the 
Department of Justice for suit under the False Claims Act or other civil 
relief, or to defer or postpone a report of referral to the reviewing 
official to avoid interference with a criminal investigation or 
prosecution.
    (d) Nothing in this section modifies any responsibility of the 
investigating official to report violations of criminal law to the 
Attorney General.

[52 FR 39498, Oct. 22, 1987, as amended at 54 FR 599, Jan. 9, 1989]



Sec. 1264.104  Review by the reviewing official.

    (a) If, based on the report of the investigating official under 
Sec. 1264.103(b), the reviewing official determines that there is 
adequate evidence to believe that a person is liable under Sec. 
1264.102 of this part, the reviewing official shall transmit to the 
Attorney General a written notice of the reviewing official's intention 
to issue a complaint under Sec. 1264.106.
    (b) Such notice shall include--

[[Page 381]]

    (1) A statement of the reviewing official's reasons for issuing a 
complaint;
    (2) A statement specifying the evidence that supports the 
allegations of liability;
    (3) A description of the claims or statements upon which the 
allegations of liability are based;
    (4) An estimate of the amount of money or the value of property, 
services, or other benefits requested or demanded in violation of Sec. 
1264.102 of this part;
    (5) A statement of any exculpatory or mitigating circumstances that 
may relate to the claims or statements known by the reviewing official 
or the investigating official; and
    (6) A statement that there is a reasonable prospect of collecting an 
appropriate amount of penalties and assessments. Such a statement may be 
based upon information then known or an absence of any information 
indicating that the person may be unable to pay such an amount.



Sec. 1264.105  Prerequisites for issuing a complaint.

    (a) The reviewing official may issue a complaint under Sec. 
1264.106 only if--
    (1) The Department of Justice approves the issuance of a complaint 
in a written statement described in 31 U.S.C. 3803(b)(1); and
    (2) In the case of allegations of liability under Sec. 1264.102(a) 
with respect to a claim, the reviewing official determines that, with 
respect to such claim or a group of related claims submitted at the same 
time such claim is submitted (as defined in paragraph (b) of this 
section), the amount of money or the value of property or services 
demanded or requested in violation of Sec. 1264.102(a) does not exceed 
$150,000.
    (b) For the purposes of this section, a related group of claims 
submitted at the same time shall include only those claims arising from 
the same transaction (e.g., grant, loan, application, or contract) that 
are submitted simultaneously as part of a single request, demand, or 
submission.
    (c) Nothing in this section shall be construed to limit the 
reviewing official's authority to join in a single complaint against a 
person claims that are unrelated or were not submitted simultaneously, 
regardless of the amount of money or the value of property or services 
demanded or requested.



Sec. 1264.106  Complaint.

    (a) On or after the date the Department of Justice approves the 
issuance of a complaint in accordance with 31 U.S.C. 3803(b)(1), the 
reviewing official may serve a complaint on the defendant, as provided 
in Sec. 1264.107.
    (b) The complaint shall state--
    (1) The allegations of liability against the defendant, including 
the statutory basis for liability, an identification of the claims or 
statements that are the basis for the alleged liability, and the reasons 
why liability allegedly arises from such claims or statements;
    (2) The maximum amount of penalties and assessments for which the 
defendant may be held liable;
    (3) Instructions for filing an answer to request a hearing, 
including a specific statement of the defendant's right to request a 
hearing by filing an answer and to be represented by a representative; 
and
    (4) That failure to file an answer within 30 days of service of the 
complaint will result in the imposition of the maximum amount of 
penalties and assessments without right to appeal as provided in Sec. 
1264.109.
    (c) At the same time the defendant is served with the complaint, he 
or she shall also be served with a--
    (1) Notice to Consent to the Chairperson of the NASA Board of 
Contract Appeals (BCA), or Designee, as presiding officer;
    (2) Copy of this part 1264 of 14 CFR.

[52 FR 39498, Oct. 22, 1987, as amended at 54 FR 599, Jan. 9, 1989]



Sec. 1264.107  Service of complaint.

    (a) Service of a complaint must be made by certified or registered 
mail or by delivery in any manner authorized by Rule 4(d) of the Federal 
Rules of Civil Procedure.
    (b) Proof of service, stating the name and address of the person on 
whom the complaint was served, and the manner and date of service, may 
be made by--
    (1) Affidavit of the individual servicing the complaint by delivery;

[[Page 382]]

    (2) A United States Postal Service return receipt card acknowledging 
receipt; or
    (3) Written acknowledgment of receipt by the defendant or his/her 
representative.

[52 FR 39498, Oct. 22, 1987, as amended at 54 FR 600, Jan. 9, 1989]



Sec. 1264.108  Answer.

    (a) The defendant may request a hearing by filing an answer with the 
reviewing official within 30 days of service of the complaint. An answer 
shall be deemed to be a request for hearing.
    (b) In the answer, the defendant--
    (1) Shall admit or deny each of the allegations of liability made in 
the complaint;
    (2) Shall state any defense on which the defendant intends to rely;
    (3) May state any reasons why the defendant contends that the 
penalties and assessments should be less than the statutory maximum; and
    (4) Shall state the name, address, and telephone number of the 
person authorized by the defendant to act as defendant's representative, 
if any.
    (c) If the defendant is unable to file an answer meeting the 
requirements of paragraph (b) of this section within the time provided, 
the defendant may, before the expiration of 30 days from service of the 
complaint, file with the reviewing official a general answer denying 
liability and requesting a hearing, and a request for an extension of 
time within which to file an answer meeting the requirements of 
paragraph (b) of this section. The reviewing official, as provided in 
Sec. 1264.110, shall file promptly with the presiding officer the 
complaint, the general answer denying liability, and the request for an 
extension of time. For good cause shown, the presiding officer may grant 
the defendant up to 30 additional days within which to file an answer 
meeting the requirements of paragraph (b) of this section.

[52 FR 39498, Oct. 22, 1987, as amended at 54 FR 600, Jan. 9, 1989]



Sec. 1264.109  Default upon failure to file an answer.

    (a) If the defendant does not file an answer within the time 
prescribed in Sec. 1264.108(a), the reviewing official may refer the 
complaint to the presiding officer.
    (b) Upon the referral of the complaint, the presiding officer shall 
promptly serve on defendant, in the manner prescribed in Sec. 1264.107, 
a notice that an initial decision will be issued under this section.
    (c) If the defendant fails to answer, the presiding officer shall 
assume the facts alleged in the complaint to be true and, if such facts 
establish liability under Sec. 1264.102, the presiding officer shall 
issue an initial decision imposing the maximum amount of penalities and 
assessments allowed under the statute.
    (d) Except as otherwise provided in this section, by failing to file 
a timely answer, the defendant waives any right to further review of the 
penalties and assessments imposed under paragraph (c) of this section, 
and the initial decision shall become final and binding upon the parties 
30 days after it is issued.
    (e) If, before such an initial decision becomes final, the defendant 
files a motion with the presiding officer seeking to reopen on the 
grounds that extraordinary circumstances prevented the defendant from 
filing an answer, the initial decision shall be stayed pending the 
presiding officer's decision on the motion.
    (f) If, on such motion, the defendant can demonstrate extraordinary 
circumstances excusing the failure to file a timely answer, the 
presiding officer shall withdraw the initial decision under paragraph 
(c) of this section, if such a decision has been issued, and shall grant 
the defendant an opportunity to answer the complaint.
    (g) A decision of the presiding officer denying a defendant's motion 
under paragraph (e) of this section is not subject to reconsideration 
under Sec. 1264.137.
    (h) The defendant may appeal to the authority head the decision 
denying a motion to reopen by filing a notice of appeal with the 
authority head within

[[Page 383]]

15 days after the presiding officer denies the motion. The timely filing 
of a notice of appeal shall stay the initial decision until the 
authority head decides the issue.
    (i) If the defendant files a timely notice of appeal with the 
authority head, the presiding officer shall forward the record of the 
proceeding to the authority head.
    (j) The authority head shall decide expeditiously whether 
extraordinary circumstances excuse the defendant's failure to file a 
timely answer based solely on the record before the presiding officer.
    (k) If the authority head decides that extraordinary circumstances 
excused the defendant's failure to file a timely answer, the authority 
head shall remand the case to the presiding officer with instructions to 
grant the defendant an opportunity to answer.
    (l) If the authority head decides that the defendant's failure to 
file a timely answer is not excused, the authority head shall reinstate 
the initial decision of the presiding officer, which shall become final 
and binding upon the parties 30 days after the authority head issues 
such decision.



Sec. 1264.110  Referral of complaint and answer to the presiding officer.

    Upon receipt of an answer, the reviewing official shall file the 
complaint and answer with the presiding officer, and include the name 
and address of the attorney who will represent the authority before the 
presiding officer.



Sec. 1264.111  Notice of hearing.

    (a) When the presiding officer receives the complaint and answer, 
the presiding officer shall promptly serve a notice of hearing upon the 
defendant in the manner prescribed by Sec. 1264.107. At the same time, 
the presiding officer shall send a copy of such notice to the 
representative of the authority.
    (b) Such notice shall include--
    (1) The tentative time and place, and the nature of the hearing;
    (2) The legal authority and jurisdiction under which the hearing is 
to be held;
    (3) The matters of fact and law asserted;
    (4) A description of the precedures for the conduct of the hearing;
    (5) The name, address, and telephone number of the representative of 
the authority and of the defendant;
    (6) An opportunity for a settlement conference or proposals of 
adjustment through alternative dispute resolutions, if not already 
explored; and
    (7) Such other matters as the presiding officer deems appropriate.



Sec. 1264.112  Parties to the hearing.

    (a) The parties to the hearing shall be the defendant and the 
authority.
    (b) Pursuant to 31 U.S.C. 3730(c)(5), a private plaintiff under the 
False Claims Act, as amended, may participate in these proceedings to 
the extent authorized by the provisions of that Act. (See section 3 of 
the False Claims Amendments Act of 1986, Pub. L. 99-562, October 27, 
1986.)



Sec. 1264.113  Separation of functions.

    (a) The investigating official, the reviewing official, and any 
employee or agent of the authority who takes part in investigating, 
preparing, or presenting a particular case may not, in such case or a 
factually related case--
    (1) Participate in the hearing as the presiding officer;
    (2) Participate or advise in the initial decision or the review of 
the initial decision by the authority head, except as a witness or as 
the authority representative in the administrative or judicial 
proceedings; or
    (3) Make the collection of penalties and assessments under 31 U.S.C. 
3806.
    (b) The presiding officer shall not be responsible to, or subject to 
the supervision or direction of, the investigating official or the 
reviewing official.
    (c) Except as provided in paragraph (a) of this section, the 
representative for the Government must be a member of the legal staff of 
the authority. Nothing in this paragraph is intended to prevent 
assistance to the Government representative by attorneys in the NASA 
organization or other governmental entities.



Sec. 1264.114  Ex parte contacts.

    No party or person (except employees of the presiding officer's 
office) shall

[[Page 384]]

communicate in any way with the presiding officer on any matter at issue 
in a case, unless on notice and opportunity for all parties to 
participate. This provision does not prohibit a person or party from 
inquiring about the status of a case or asking routine questions 
concerning administrative functions or procedures.

[54 FR 600, Jan. 9, 1989]



Sec. 1264.115  Disqualification of reviewing official or presiding officer.

    (a) A reviewing official or presiding officer in a particular case 
may disqualify himself or herself at any time.
    (b) A party may file with the presiding officer a motion for 
disqualification of a reviewing official or a presiding officer. Such 
motion shall be accompanied by an affidavit alleging personal bias or 
other reason for disqualification.
    (c) Such motion and affidavit shall be filed promptly upon the 
party's discovery of reasons for disqualification, or such objections 
shall be deemed waived.
    (d) Such affidavit shall state specific facts that support the 
party's belief that personal bias or other reason for disqualification 
exists and the time and circumstances of the party's discovery of such 
facts. It shall be accompanied by a certificate of the representative of 
record that it is made in good faith.
    (e) Upon the filing of such a motion and affidavit, the presiding 
officer shall proceed no further in the case until the matter of 
disqualification is resolved in accordance with paragraph (f) of this 
section.
    (f)(1) If the presiding officer determines that a reviewing official 
is disqualified, the presiding officer shall dismiss the complaint 
without prejudice.
    (2) If the presiding officer disqualifies himself or herself, the 
case shall be reassigned promptly to another presiding officer.
    (3) If the presiding officer denies a motion to disqualify, the 
authority head may determine the matter only as part of his or her 
review of the initial decision upon appeal, if any.



Sec. 1264.116  Rights of parties.

    Except as otherwise limited by this part, all parties may--
    (a) Be accompanied, represented, and advised by a representative;
    (b) Paticipate in any conference held by the presiding officer;
    (c) Conduct discovery;
    (d) Agree to stipulations of fact or law, which shall be made part 
of the record;
    (e) Present evidence relevant to the issues at the hearing;
    (f) Present and cross-examine witnesses;
    (g) Present oral arguments at the hearing as permitted by the 
presiding officer; and
    (h) Submit written briefs and proposed findings of fact and 
conclusions of law after the hearing.



Sec. 1264.117  Authority of the presiding officer.

    (a) The presiding officer shall conduct a fair and impartial 
hearing, avoid delay, maintain order, and assure that a record of the 
proceeding is made.
    (b) The presiding officer has the authority to--
    (1) Set and change the date, time, and place of the hearing upon 
reasonable notice to the parties;
    (2) Continue or recess the hearing in whole or in part for a 
reasonable period of time;
    (3) Hold conferences to identify or simplify the issues, or to 
consider other matters, including settlement conferences or other 
alternative dispute resolution, that may aid in the fair and expeditious 
disposition of the proceeding;
    (4) Administer oaths and affirmations;
    (5) Issue subpoenas, requiring the attendance of witnesses and the 
production of documents at depositions or at hearings, which the 
presiding officer considers relevant and material;
    (6) Rule on motions and other procedural matters;
    (7) Regulate the scope and timing of discovery;
    (8) Regulate the course of the hearing and the conduct of 
representatives and parties;
    (9) Examine witnesses;

[[Page 385]]

    (10) Receive, rule on, exclude, or limit evidence;
    (11) Upon motion of a party, take official notice of facts;
    (12) Upon motion of a party, decide cases, in whole or in part, by 
summary judgment where there is no genuine issue as to any material 
fact;
    (13) Conduct any conference, argument, or hearing on motions in 
person or by telephone; and
    (14) Exercise such other authority as is necessary to carry out the 
responsibilities of the presiding officer under this part.
    (c) The presiding officer does not have the authority to find 
Federal statutes or regulations invalid.

[52 FR 39498, Oct. 22, 1987, as amended at 54 FR 600, Jan. 9, 1989]



Sec. 1264.118  Prehearing conferences.

    (a) The presiding officer may schedule prehearing conferences as 
appropriate.
    (b) Upon the motion of any party, the presiding officer shall 
schedule at least one prehearing conference at a reasonable time in 
advance of the hearing.
    (c) The presiding officer may use prehearing conferences to discuss 
the following:
    (1) Simplification of the issues;
    (2) The necessity or desirability of amendments to the pleadings, 
including the need for a more definite statement;
    (3) Stipulations and admissions of fact or as to the contents and 
authenticity of documents;
    (4) Whether the parties can agree to submission of the case on a 
stipulated record;
    (5) Whether a party chooses to waive appearance at an oral hearing 
and to submit only documentary evidence (subject to the objections of 
other parties) and written arguments;
    (6) Limitation of the number of witnesses;
    (7) Scheduling dates for the exchange of witness lists and of 
proposed exhibits;
    (8) Discovery;
    (9) The time and place for the hearing; and
    (10) Such other matters, including settlement, as may tend to 
expedite the fair and just disposition of the proceedings.
    (d) The presiding officer may issue an order containing all matters 
agreed upon by the parties or ordered by the presiding officer at a 
prehearing conference.

[52 FR 39498, Oct. 22, 1987, as amended at 54 FR 600, Jan. 9, 1989]



Sec. 1264.119  Disclosure of documents.

    (a) Upon written request to the reviewing official, the defendant 
may review any relevant and material documents, transcripts, records, 
and other materials that relate to the allegations set out in the 
complaint and upon which the findings and conclusions of the 
investigating official under Sec. 1264.103(b) are based unless such 
documents are subject to a privilege under Federal law. Upon payment of 
a reasonable fee for duplication, the defendant may obtain copies of 
such documents.
    (b) Upon written request to the reviewing official, the defendant 
also may obtain a copy of all exculpatory information in the possession 
of the reviewing official or investigating official relating to the 
allegations in the complaint, even if it is contained in a document that 
would otherwise be privileged. If the document would otherwise be 
privileged, only that portion containing exculpatory information must be 
disclosed.
    (c) The notice sent to the Attorney General from the reviewing 
official as described in Sec. 1264.104 is not discoverable under any 
circumstances.
    (d) The defendant may file a motion to compel disclosure of the 
documents subject to the provisions of this section. Such a motion may 
only be filed with the presiding officer following the filing of an 
answer pursuant to Sec. 1264.108.



Sec. 1264.120  Discovery.

    (a) The following types of discovery are authorized:
    (1) Requests for production of documents for inspection and copying;
    (2) Requests for admissions of the authenticity of any relevant 
document or of the truth of any relevant fact;
    (3) Written interrogatories; and
    (4) Depositions.

[[Page 386]]

    (b) For the purpose of this section and Sec. Sec. 1264.121 and 
1264.122, the term documents includes information, documents, reports, 
answers, records, accounts, papers, and other data and documentary 
evidence which the presiding officer considers relevant and material to 
the hearing. Nothing contained herein shall be interpreted to require 
the creation of a document.
    (c) Unless mutually agreed to by the parties, discovery is available 
only as ordered by the presiding officer. The presiding officer shall 
regulate the timing of discovery.
    (d) Motions for discovery. (1) A party seeking discovery may file a 
motion with the presiding officer. Such a motion shall be accompanied by 
a copy of the discovery request or, in the case of depositions, a 
summary of the scope of the proposed deposition.
    (2) Within 10 days of service, a party may file an opposition to the 
motion and/or a motion for protective order as provided in Sec. 
1264.123.
    (3) The presiding officer may grant a motion for discovery only if 
he/she finds that the discovery sought--
    (i) Is necessary for the expeditious, fair, and reasonable 
consideration of the issues;
    (ii) Is not unduly costly or burdensome;
    (iii) Will not unduly delay the proceeding; and
    (iv) Does not seek privileged information.
    (4) The burden of showing that discovery should be allowed is on the 
party seeking discovery.
    (5) The presiding officer may grant discovery subject to a 
protective order under Sec. 1264.123.
    (e) Depositions. (1) If a motion for deposition is granted, the 
presiding officer shall issue a subpoena for the deponent, which may 
require the deponent to produce documents. The subpoena shall specify 
the time and place at which the deposition will be held.
    (2) The party seeking to depose shall serve the subpoena in the 
manner prescribed in Sec. 1264.107.
    (3) The deponent may file with the presiding officer a motion to 
quash the subpoena or a motion for a protective order within 10 days of 
service.
    (4) The party seeking to depose shall provide for the taking of a 
verbatim transcript of the deposition, which it shall make available to 
all other parties for inspection and copying.
    (f) Each party shall bear its own costs of discovery.



Sec. 1264.121  Exchange of witness lists, statements, and exhibits.

    (a) At least 15 days before the hearing or at such other time as may 
be ordered by the presiding officer, the parties shall exchange witness 
lists, copies of prior statements of proposed witnesses, and copies of 
proposed hearing exhibits, including copies of any written statements 
that the party intends to offer in lieu of live testimony in accordance 
with paragraph (b) of Sec. 1264.132. At the time the above documents 
are exchanged, any party that intends to rely on the transcript of 
deposition testimony in lieu of live testimony at the hearing, if 
permitted by the presiding officer, shall provide each party with a copy 
of the specific pages of the transcript it intends to introduce into 
evidence.
    (b) If a party objects, the presiding officer shall not admit into 
evidence the testimony of any witness whose name does not appear on the 
witness list or any exhibit not provided to the opposing party, in 
accordance with paragraph (a) of this section, unless the presiding 
officer finds goods cause for the failure or that there is no prejudice 
to the objecting party.
    (c) Unless another party objects within the time set by the 
presiding officer, documents exchanged in accordance with paragraph (a) 
of this section shall be deemed to be authentic for the purpose of 
admissibility at the hearing.



Sec. 1264.122  Subpoena for attendance at hearing.

    (a) A party wishing the appearance and testimony of any individual 
at the hearing may request that the presiding officer issue a subpoena.
    (b) A subpoena requiring the attendance and testimony of an 
individual may also require the individual to produce documents at the 
hearing.
    (c) A party seeking a subpoena shall file a written request therefor 
not less than 15 days before the date fixed for

[[Page 387]]

the hearing unless otherwise allowed by the presiding officer for good 
cause shown. Such request shall specify any documents to be produced and 
shall designate the witnesses and describe the address and location 
thereof with sufficient particularity to permit such witnesses to be 
found.
    (d) The subpoena shall specify the time and place at which the 
witness is to appear and any documents the witness is to produce.
    (e) The party seeking the subpoena shall serve it in the manner 
prescribed in Sec. 1264.107. A subpoena on a party or upon an 
individual under the control of a party may be served by first class 
mail.
    (f) A party or the individual to whom the subpoena is directed may 
file with the presiding officer a motion to quash the subpoena within 10 
days after service or on or before the time specified in the subpoena 
for compliance if it is less than 10 days after service.



Sec. 1264.123  Protective order.

    (a) A party or a prospective witness or deponent may file a motion 
for a protective order with respect to discovery sought by an opposing 
party or with respect to the hearing, seeking to limit the availability 
or disclosure of evidence.
    (b) In issuing a protective order, the presiding officer may make 
any order which justice requires to protect a party or person from 
annoyance, embarrassment, oppression, or undue burden or expense, 
including one or more of the following:
    (1) That the discovery not be had;
    (2) That the discovery may be had only on specified terms and 
conditions, including a designation of the time or place;
    (3) That the discovery may be had only through a method of discovery 
other than that requested;
    (4) That certain matters not be inquired into, or that the scope of 
discovery be limited to certain matters;
    (5) That discovery be conducted with no one present except persons 
designated by the presiding officer;
    (6) That the contents of discovery or evidence be sealed;
    (7) That a deposition after being sealed be opened only by order of 
the presiding officer;
    (8) That a trade secret or other confidential research, development, 
commercial information, or facts pertaining to any criminal 
investigation, proceeding, or other administrative investigation not be 
disclosed or be disclosed only in a designated way; or
    (9) That the parties simultaneously file specified documents or 
information enclosed in sealed envelopes to be opened as directed by the 
presiding officer.



Sec. 1264.124  Fees.

    The party requesting a supoena shall pay the cost of the fees and 
mileage of any witness supoenaed in the amounts that would be payable to 
a witness in a proceeding in United States District Court. A check for 
witness fees and mileage shall accompany the subpoena when served, 
except that when a subpoena is issued on behalf of the authority, a 
check for witness fees and mileage need not accompany the subpoena.



Sec. 1264.125  Form, filing, and service of papers.

    (a) Form. (1) Documents filed with the presiding officer shall 
include an original and two copies.
    (2) Every pleading and paper filed in the proceeding shall contain a 
caption setting forth the title of the action, the case number assigned 
by the presiding officer, and a designation of the paper (e.g., motion 
to quash subpoena).
    (3) Every pleading and paper shall be signed by, and shall contain 
the address and telephone number of the party or the person on whose 
behalf the paper was filed, or his or her representative.
    (4) Papers are considered filed when they are mailed. Date of 
mailing may be established by a certificate from the party or its 
representative or by proof that the document was sent by certified or 
registered mail.
    (b) Service. A party filing a document with the presiding officer 
shall, at the time of filing, serve a copy of such document on every 
other party. Service upon any party of any document other

[[Page 388]]

than those required to be served as prescribed in Sec. 1264.107 shall 
be made by delivering a copy or by placing a copy of the document in the 
U.S. mail, postage prepaid, and addressed to the party's last known 
address. When a party is represented by a representative, service shall 
be made upon such representative.
    (c) Proof of service. A certificate of the individual serving the 
document by personal delivery or by mail, setting forth the manner of 
service, shall be proof of service.

[52 FR 39498, Oct. 22, 1987, as amended at 54 FR 600, Jan. 9, 1989]



Sec. 1264.126  Computation of time.

    (a) In computing any period of time under this part or in an order 
issued thereunder, the time begins with the day following the act, 
event, or default, and includes the last day of the period, unless it is 
a Saturday, Sunday, or legal holiday observed by the Federal government, 
in which event it includes the next business day.
    (b) When the period of time allowed is less than 7 days, 
intermediate Saturdays, Sundays, and legal holidays observed by the 
Federal government shall be excluded from the computation.
    (c) Where a document has been served or issued by placing it in the 
mail, an additional 5 days will be added to the time permitted for any 
response.

[52 FR 39498, Oct. 22, 1987, as amended at 54 FR 600, Jan. 9, 1989]



Sec. 1264.127  Motions.

    (a) Any application to the presiding officer for an order or ruling 
shall be by motion. Motions shall state the relief sought, the authority 
relied upon, and the facts alleged, and shall be filed with the 
presiding officer and served on all other parties.
    (b) Except for motions made during a prehearing conference or at the 
hearing, all motions shall be in writing. The presiding officer may 
require that oral motions be reduced to writing.
    (c) Within 15 days after a written motion is served, or such other 
time as may be fixed by the presiding officer, any party may file a 
response to such motion.
    (d) The presiding officer may not grant a written motion before the 
time for filing responses thereto has expired, except upon consent of 
the parties or following a hearing on the motion, but may overrule or 
deny such motion without awaiting a response.
    (e) The presiding officer shall make a reasonable effort to dispose 
of all outstanding motions prior to the beginning of the hearing.



Sec. 1264.128  Sanctions.

    (a) The presiding officer may sanction a person, including any party 
or representative for--
    (1) Failing to comply with an order, rule, or procedure governing 
the proceeding;
    (2) Failing to prosecute or defend an action; or
    (3) Engaging in other misconduct that interferes with the speedy, 
orderly, or fair conduct of the hearing.
    (b) Any such sanction, including but not limited to those listed in 
paragraphs (c), (d), and (e) of this section, shall reasonably relate to 
the severity and nature of the failure or misconduct.
    (c) When a party fails to comply with an order, including an order 
for taking a deposition, the production of evidence within the party's 
control, or a request for admission, the presiding officer may--
    (1) Draw an inference in favor of the requesting party with regard 
to the information sought;
    (2) In the case of requests for admission, deem each matter of which 
an admission is requested to be admitted;
    (3) Prohibit the party failing to comply with such order from 
introducing evidence concerning, or otherwise relying upon testimony 
relating to, the information sought; and
    (4) Strike any part of the pleadings or other submissions of the 
party failing to comply with such request.
    (d) If a party fails to prosecute or defend an action under this 
part commenced by service of a notice of hearing, the presiding officer 
may dismiss the action or may issue an initial decision imposing 
penalties and assessments.

[[Page 389]]

    (e) The presiding officer may refuse to consider any motion, 
request, response, brief, or other document which is not filed in a 
timely fashion.



Sec. 1264.129  The hearing and burden of proof.

    (a) The presiding officer shall conduct a hearing on the record in 
order to determine whether the defendant is liable for a civil penalty 
or assessment under Sec. 1264.102 and, if so, the appropriate amount of 
any such civil penalty or assessment considering any aggravating or 
mitigating factors.
    (b) The authority shall prove defendant's liability and any 
aggravating factors by a preponderance of the evidence.
    (c) The defendant shall prove any affirmative defenses and any 
mitigating factors by a preponderance of the evidence.
    (d) The hearing shall be open to the public unless otherwise ordered 
by the presiding officer for good cause shown.



Sec. 1264.130  Determining the amount of penalties and assessments.

    (a) In determining an appropriate amount of civil penalties and 
assessments, the presiding officer, and the authority head upon appeal, 
should evaluate any circumstances that mitigate or aggravate the 
violation and should articulate in their opinions the reasons that 
support the penalties and assessments they impose. Because of the 
intangible costs of fraud, the expense of investigating such conduct, 
and the need to deter others who might be similarly tempted, ordinarily 
double damages and a significant civil penalty should be imposed.
    (b) Although not exhaustive, the following factors are among those 
that may influence the presiding officer and the authority head in 
determining the amount of penalties and assessments to impose with 
respect to the misconduct (i.e., the false, fictitious, or fraudulent 
claims or statements) charged in the complaint:
    (1) The number of false, fictitious, or fraudulent claims or 
statements;
    (2) The time period over which such claims or statements were made;
    (3) The degree of the defendant's culpability with respect to the 
misconduct;
    (4) The amount of money or the value of the property, services, or 
benefit falsely claimed;
    (5) The value of the Government's actual loss as a result of the 
misconduct, including foreseeable consequential damages and the costs of 
investigation;
    (6) The relationship of the amount imposed as civil penalties to the 
amount of the Government's loss;
    (7) The potential or actual impact of the misconduct upon national 
defense, public health or safety, or public confidence in the management 
of Government programs and operations, including particularly the impact 
on the intended beneficiaries of such programs;
    (8) Whether the defendant has engaged in a pattern of the same or 
similar misconduct;
    (9) Whether the defendant attempted to conceal the misconduct;
    (10) The degree to which the defendant has involved others in the 
misconduct or in concealing it;
    (11) Where the misconduct of employees or agents is imputed to the 
defendant, the extent to which the defendant's practices fostered or 
attempted to preclude such misconduct;
    (12) Whether the defendant cooperated in or obstructed an 
investigation of the misconduct;
    (13) Whether the defendant assisted in identifying and prosecuting 
other wrongdoers;
    (14) The complexity of the program or transaction, and the degree of 
the defendant's sophistication with respect to it, including the extent 
of the defendant's prior participation in the program or in similar 
transactions;
    (15) Whether the defendant has been found, in any criminal, civil, 
or administrative proceeding to have engaged in similar misconduct or to 
have dealt dishonestly with the Government of the United States or of a 
State, directly or indirectly; and
    (16) The need to deter the defendant and others from engaging in the 
same or similar misconduct.
    (c) Nothing in this section shall be construed to limit the 
presiding officer or the authority head from considering any other 
factors that in any given

[[Page 390]]

case may mitigate or aggravate the offense for which penalties and 
assessments are imposed.



Sec. 1264.131  Location of hearing.

    (a) The hearing may be held--
    (1) In any judicial district of the United States in which the 
defendant resides or transacts business;
    (2) In any judicial district of the United States in which the claim 
or statement in issue was made; or
    (3) In such other place as may be agreed upon by the defendant and 
the presiding officer.
    (b) Each party shall have the opportunity to present argument with 
respect to the location of the hearing.
    (c) The hearing shall be held at the place and at the time ordered 
by the presiding officer.



Sec. 1264.132  Witnesses.

    (a) Except as provided in paragraph (b) of this section, testimony 
at the hearing shall be given orally by witnesses under oath or 
affirmation.
    (b) At the discretion of the presiding officer, testimony may be 
admitted in the form of a written statement or deposition. Any such 
written statement must be provided to all other parties along with the 
last known address of such witness, in a manner which allows sufficient 
time for other parties to subpoena such witness for cross-examination at 
the hearing. Prior written statements of witnesses proposed to testify 
at the hearing and deposition transcripts shall be exchanged as provided 
in Sec. 1264.121(a).
    (c) The presiding officer shall exercise reasonable control over the 
mode and order of interrogating witnesses and presenting evidence so as 
to make the interrogation and presentation effective for the 
ascertainment of the truth, avoid needless consumption of time, and 
protect witnesses from harassment or undue embarrassment.
    (d) The presiding officer shall permit the parties to conduct such 
cross-examination as may be required for a full and true disclosure of 
the facts.
    (e) At the discretion of the presiding officer, a witness may be 
cross-examined on matters relevant to the proceeding without regard to 
the scope of his or her direct examination. To the extent permitted by 
the presiding officer, cross-examination on matters outside the scope of 
direct examination shall be conducted in the manner of direct 
examination and may proceed by leading questions only if the witness is 
a hostile witness, an adverse party, or a witness identified with an 
adverse party.
    (f) Upon motion of any party, the presiding officer shall order 
witnesses excluded so that they cannot hear the testimony of other 
witnesses. This rule does not authorize exclusion of--
    (1) A party who is an individual;
    (2) In the case of a party that is not an individual, an officer or 
employee of the party appearing for the entity pro se or designated by 
the party's representative; or
    (3) An individual whose presence is shown by a party to be essential 
to the presentation of its case, including an individual employed by the 
Government engaged in assisting the representative for the Government.

[52 FR 39498, Oct. 22, 1987, as amended at 54 FR 600, Jan. 9, 1989]



Sec. 1264.133  Evidence.

    (a) The presiding officer shall determine the admissibility of 
evidence.
    (b) Except as provided herein, the presiding officer shall not be 
bound by the Federal Rules of Evidence. However, the presiding officer 
may apply the Federal Rules of Evidence where appropriate, e.g., to 
exclude unreliable evidence.
    (c) The presiding officer shall exclude irrelevant and immaterial 
evidence.
    (d) Although relevant, evidence may be excluded if its probative 
value is substantially outweighed by the danger of unfair prejudice, 
confusion of the issues, or by considerations of undue delay or needless 
presentation of cumulative evidence.
    (e) Although relevant, evidence may be excluded if it is privileged 
under Federal law.
    (f) Evidence concerning offers of compromise or settlement shall be 
inadmissible to the extent provided in Rule 408 of the Federal Rules of 
Evidence.
    (g) The presiding officer shall permit the parties to introduce 
rebuttal witnesses and evidence.

[[Page 391]]

    (h) All documents and other evidence offered or taken for the record 
shall be open to examination by all parties, unless otherwise ordered by 
the presiding officer pursuant to Sec. 1264.123.



Sec. 1264.134  The record.

    (a) The hearing will be recorded and transcribed. Transcripts may be 
obtained following the hearing from the presiding officer at a cost not 
to exceed the actual cost of duplication.
    (b) The transcript of testimony, exhibits, and other evidence 
admitted at the hearing, and all papers and requests filed in the 
proceeding constitute the record for the decision by the presiding 
officer and the authority head.
    (c) The record may be inspected and copied (upon payment of a 
reasonable fee) by anyone, unless otherwise ordered by the presiding 
officer pursuant to Sec. 1264.123.



Sec. 1264.135  Post-hearing briefs.

    The presiding officer may require the parties to file post-hearing 
briefs. In any event, upon approval of the presiding officer, any party 
may file a post-hearing brief. The presiding officer shall fix the time 
for filing such briefs, not to exceed 60 days from the date the parties 
receive the transcript of the hearing or, if applicable, the stipulated 
record. Such briefs may be accompanied by proposed findings of fact and 
conclusions of law. The presiding officer may permit the parties to file 
reply briefs, and may grant an extension of the 60-day time period or 
other time for good cause shown.



Sec. 1264.136  Initial decision.

    (a) The presiding officer shall issue an initial decision based 
solely on the record, which shall contain findings of fact, conclusions 
of law, and the amount of any penalties and assessments imposed.
    (b) The findings of fact shall include a finding on each of the 
following issues:
    (1) Whether the claims or statements identified in the complaint, or 
any portions thereof, violate Sec. 1264.102;
    (2) If the person is liable for penalties or assessments, the 
appropriate amount of any such penalties or assessments considering any 
mitigating or aggravating factors found in the case, such as those 
described in Sec. 1264.130.
    (c) The presiding officer shall promptly serve the initial decision 
on all parties within 90 days after the time for submission of post-
hearing briefs and reply briefs (if permitted) has expired or upon 
notification that the record is now closed. The presiding officer shall 
at the same time serve all parties with a statement describing the right 
of any defendant determined to be liable for a civil penalty or 
assessment to file a motion for reconsideration with the presiding 
officer or a notice of appeal with the authority head. If the presiding 
officer fails to meet the deadline contained in this paragraph, he or 
she shall notify the parties of the reason for the delay and shall set a 
new deadline.
    (d) Unless the initial decision of the presiding officer is timely 
appealed to the authority head, or a motion for reconsideration of the 
initial decision is timely filed, the initial decision shall constitute 
the final decision of the authority head and shall be final and binding 
on the parties 30 days after it is issued by the presiding officer.

[52 FR 39498, Oct. 22, 1987, as amended at 54 FR 600, Jan. 9, 1989]



Sec. 1264.137  Reconsideration of initial decision.

    (a) Except as provided in paragraph (d) of this section, any party 
may file a motion for reconsideration of the initial decision within 20 
days of receipt of the initial decision. If service was made by mail, 
receipt will be presumed to be 5 days from the date of mailing in the 
absence of contrary proof.
    (b) Every such motion must set forth the matters claimed to have 
been erroneously decided and the nature of the alleged errors. Such 
motion shall be accompanied by a supporting brief.
    (c) Responses to such motions shall be allowed only upon request of 
the presiding officer.
    (d) No party may file a motion for reconsideration of an initial 
decision that has been revised in response to a previous motion for 
reconsideration.

[[Page 392]]

    (e) The presiding officer may dispose of a motion for 
reconsideration by denying it or by issuing a revised initial decision.
    (f) If the presiding officer denies a motion for reconsideration, 
the initial decision shall constitute the final decision of the 
authority head and shall be final and binding on the parties 30 days 
after the presiding officer denies the motion, unless the initial 
decision is timely appealed to the authority head in accordance with 
Sec. 1264.138.
    (g) If the presiding officer issues a revised initial decision, the 
revised decision shall constitute the final decision of the authority 
head and shall be final and binding on the parties 30 days after it is 
issued, unless it is timely appealed to the authority head in accordance 
with Sec. 1264.138.

[52 FR 39498, Oct. 22, 1987, as amended at 54 FR 600, Jan. 9, 1989]



Sec. 1264.138  Appeal to authority head.

    (a) Any defendant who has filed a timely answer and who is 
determined in an initial decision to be liable for a civil penalty or 
assessment may appeal such decision to the authority head by filing a 
notice of appeal with the authority head in accordance with this 
section.
    (b) The time for appeal to the authority head is as follows:
    (1) A notice of appeal may be filed at any time within 30 days after 
the presiding officer issues an initial decision. However, if any other 
party files a motion for a reconsideration under Sec. 1264.137, 
consideration of the appeal shall be stayed automatically pending 
resolution of the motion for reconsideration.
    (2) If a motion for reconsideration is timely filed, a notice of 
appeal must be filed within 30 days after the presiding officer denies 
the motion or issues a revised initial decision, whichever applies.
    (3) If no motion for reconsideration is timely filed, a notice of 
appeal must be filed within 30 days after the presiding officer issues 
the initial decision.
    (4) The authority head may extend the initial 30-day period for an 
additional 30 days if the defendant files with the authority head a 
request for an extension within the initial 30-day period and shows good 
cause.
    (c) If the defendant files a timely notice of appeal with the 
authority head and the time for filing motions for reconsideration under 
Sec. 1264.137 has expired, the presiding officer shall forward the 
record of the proceeding to the authority head.
    (d) A notice of appeal shall be accompanied by a written brief 
specifying exceptions to the initial decision and reasons supporting the 
exceptions.
    (e) The representative for the Government may file a brief in 
opposition to exceptions within 30 days of receiving the notice of 
appeal and accompanying brief.
    (f) There is no right to appear personally before the authority 
head.
    (g) There is no right to appeal any interlocutory ruling by the 
presiding officer.
    (h) In reviewing the initial decision, the authority head shall not 
consider any objection that was not raised before the presiding officer 
unless a demonstration is made of extraordinary circumstances causing 
the failure to raise the objection.
    (i) If any party demonstrates to the satisfaction of the authority 
head that additional evidence not presented at such hearing is material 
and that there were reasonable grounds for the failure to present such 
evidence at such hearing, the authority head shall remand the matter to 
the presiding officer for consideration of such additional evidence.
    (j) The authority head may affirm, reduce, reverse, compromise, 
remand, or settle any penalty or assessment, determined by the presiding 
officer in any initial decision.
    (k) The authority head shall promptly serve each party to the appeal 
with a copy of the decision of the authority head. At the same time the 
authority head shall serve the defendant with a statement describing the 
defendant's right to seek judicial review.
    (l) Unless a petition for review is filed as provided in 31 U.S.C. 
3805, after a defendant has exhausted all administrative remedies under 
this part and within 60 days after the date on which the authority head 
serves the defendant with a copy of the authority head's

[[Page 393]]

decision, a determination that a defendant is liable under Sec. 
1264.102 is final and is not subject to judicial review.

[52 FR 39498, Oct. 22, 1987, as amended at 54 FR 600, Jan. 9, 1989]



Sec. 1264.139  Stays ordered by the Department of Justice.

    If at any time the Attorney General or an Assistant Attorney General 
designated by the Attorney General transmits to the authority head a 
written finding that continuation of the administrative process 
described in this part with respect to a claim or statement may 
adversely affect any pending or potential criminal or civil action 
related to such claim or statement, the authority head shall stay the 
process immediately. If the process is before the presiding officer, the 
authority head shall promptly transmit the finding to the presiding 
officer, who, in turn, must stay the proceeding and give notice to all 
parties and their representatives. The authority head may order the 
process resumed only upon receipt of the written authorization of the 
Attorney General.



Sec. 1264.140  Stay pending appeal.

    (a) An initial decision is stayed automatically pending disposition 
of a motion for reconsideration or of an appeal to the authority head.
    (b) No administrative stay is available following a final decision 
of the authority head.



Sec. 1264.141  Judicial review.

    Section 3805 of Title 31, United States Code, authorizes judicial 
review by an appropriate United States District Court of a final 
decision of the authority head imposing penalties or assessments under 
this part and specifies the procedures for such review.



Sec. 1264.142  Collection of civil penalties and assessments.

    Sections 3806 and 3808(b) of Title 31, United States Code, authorize 
actions for collection of civil penalties and assessments imposed under 
this part and specify the procedures for such actions.



Sec. 1264.143  Right to administrative offset.

    The amount of any penalty or assessment which has become final, or 
for which a judgment has been entered under Sec. 1264.141 or Sec. 
1264.142, or any amount agreed upon in a compromise or settlement under 
Sec. 1264.145, may be collected by administrative offset under 31 
U.S.C. 3716, except that an administrative offset may not be made under 
this subsection against a refund of an overpayment of Federal taxes, 
then or later owing by the United States to the defendant.



Sec. 1264.144  Deposit in Treasury of United States.

    All amounts collected pursuant to this part shall be deposited as 
miscellaneous receipts in the Treasury of the United States, except as 
provided in 31 U.S.C. 3806(g).



Sec. 1264.145  Compromise or settlement.

    (a) Parties may make offers of compromise or settlement at any time, 
including proposals for alternative dispute resolution.
    (b) The reviewing official has the exclusive authority to compromise 
or settle a case under this part at any time after the date on which the 
reviewing official is permitted to refer allegations of liability to a 
presiding officer and before the date on which the presiding officer 
issues an initial decision.
    (c) The authority head has exclusive authority to compromise or 
settle a case under this part at any time after the date on which the 
presiding officer issues an initial decision, except during the pendency 
of any judicial review under Sec. 1264.141 or during the pendency of 
any civil action to collect penalties and assessments under Sec. 
1264.142.
    (d) The Attorney General has exclusive authority to compromise or 
settle a case under this part during the pendency of any judicial review 
under 31 U.S.C. 3805 or of any civil action to recover penalties and 
assessments under 31 U.S.C. 3806.
    (e) The investigating official may recommend settlement terms to the 
reviewing official, the authority head, or the Attorney General, as 
appropriate. The reviewing official may recommend

[[Page 394]]

settlement terms to the authority head, or the Attorney General, as 
appropriate.
    (f) Any compromise or settlement must be in writing.



Sec. 1264.146  Limitations.

    (a) The notice of hearing with respect to a claim or statement must 
be served in the manner specified in Sec. 1264.107 within 6 years after 
the date on which such claim or statement is made.
    (b) If the defendant fails to file a timely answer, service of a 
notice under Sec. 1264.109(b) shall be deemed a notice of hearing for 
purposes of this section.
    (c) The statute of limitations may be extended by agreement of the 
parties.

  Appendix A to Part 1264--Notice To Consent to the Chairperson, NASA 
   Board of Contract Appeals (BCA), or Designee, as Presiding Officer

    In accordance with the provisions of 14 CFR 1264.106, you are hereby 
notified that the Chairperson, NASA Board of Contract Appeals (BCA), or 
designee, in addition to other duties, upon your consent, may conduct 
any or all proceedings as the presiding officer, pursuant to 14 CFR part 
1264 which implements the Program Fraud Civil Penalties Act of 1986.
    You should be aware that your decision to consent, or not to 
consent, to the referral of this case to the NASA/BCA must be entirely 
voluntary. Only if you and the authority head consent to this reference 
will either the Chairperson or the designee to whom the case may be 
assigned be informed of your decision.
    An appeal from a decision by the presiding officer under this 
consent procedure may be taken in the same manner as an appeal from a 
decision by any other presiding officer, as provided in 14 CFR 
1264.136(d), 1264.137, 1264.138, and 1264.141.
    If you consent, you must sign, date, and return this form within the 
30-day period provided for your answer (see 14 CFR 1264.108, 1264.109).

consent:________________________________________________________________
(Signature of person alleged to be liable)

________________________________________________________________________
(Print name)
________________________________________________________________________
(Date of signature)



PART 1265--GOVERNMENTWIDE DEBARMENT AND SUSPENSION (NONPROCUREMENT)--Table of Contents




Sec.
1265.25 How is this part organized?
1265.50 How is this part written?
1265.75 Do terms in this part have special meanings?

                           Subpart A--General

1265.100 What does this part do?
1265.105 Does this part apply to me?
1265.110 What is the purpose of the nonprocurement debarment and 
          suspension system?
1265.115 How does an exclusion restrict a person's involvement in 
          covered transactions?
1265.120 May we grant an exception to let an excluded person participate 
          in a covered transaction?
1265.125 Does an exclusion under the nonprocurement system affect a 
          person's eligibility for Federal procurement contracts?
1265.130 Does exclusion under the Federal procurement system affect a 
          person's eligibility to participate in nonprocurement 
          transactions?
1265.135 May NASA exclude a person who is not currently participating in 
          a nonprocurement transaction?
1265.140 How do I know if a person is excluded?
1265.145 Does this part address persons who are disqualified, as well as 
          those who are excluded from nonprocurement transactions?

                     Subpart B--Covered Transactions

1265.200 What is a covered transaction?
1265.205 Why is it important to know if a particular transaction is a 
          covered transaction?
1265.210 Which nonprocurement transactions are covered transactions?
1265.215 Which nonprocurement transactions are not covered transactions?
1265.220 Are any procurement contracts included as covered transactions?
1265.225 How do I know if a transaction in which I may participate is a 
          covered transaction?

   Subpart C--Responsibilities of Participants Regarding Transactions

                    Doing Business With Other Persons

1265.300 What must I do before I enter into a covered transaction with 
          another person at the next lower tier?

[[Page 395]]

1265.305 May I enter into a covered transaction with an excluded or 
          disqualified person?
1265.310 What must I do if a Federal agency excludes a person with whom 
          I am already doing business in a covered transaction?
1265.315 May I use the services of an excluded person as a principal 
          under a covered transaction?
1265.320 Must I verify that principals of my covered transactions are 
          eligible to participate?
1265.325 What happens if I do business with an excluded person in a 
          covered transaction?
1265.330 What requirements must I pass down to persons at lower tiers 
          with whom I intend to do business?

            Disclosing Information--Primary Tier Participants

1265.335 What information must I provide before entering into a covered 
          transaction with NASA?
1265.340 If I disclose unfavorable information required under Sec. 
          1265.335, will I be prevented from participating in the 
          transaction?
1265.345 What happens if I fail to disclose the information required 
          under Sec. 1265.335?
1265.350 What must I do if I learn of the information required under 
          Sec. 1265.335 after entering into a covered transaction with 
          NASA?

             Disclosing Information--Lower Tier Participants

1265.355 What information must I provide to a higher tier participant 
          before entering into a covered transaction with that 
          participant?
1265.360 What happens if I fail to disclose the information required 
          under Sec. 1265.355?
1265.365 What must I do if I learn of information required under Sec. 
          1265.355 after entering into a covered transaction with a 
          higher tier participant?

  Subpart D--Responsibilities of NASA Officials Regarding Transactions

1265.400 May I enter into a transaction with an excluded or disqualified 
          person?
1265.405 May I enter into a covered transaction with a participant if a 
          principal of the transaction is excluded?
1265.410 May I approve a participant's use of the services of an 
          excluded person?
1265.415 What must I do if a Federal agency excludes the participant or 
          a principal after I enter into a covered transaction?
1265.420 May I approve a transaction with an excluded or disqualified 
          person at a lower tier?
1265.425 When do I check to see if a person is excluded or disqualified?
1265.430 How do I check to see if a person is excluded or disqualified?
1265.435 What must I require of a primary tier participant?
1265.440 What method do I use to communicate those requirements to 
          participants?
1265.445 What action may I take if a primary tier participant knowingly 
          does business with an excluded or disqualified person?
1265.450 What action may I take if a primary tier participant fails to 
          disclose the information required under Sec. 1265.335?
1265.455 What may I do if a lower tier participant fails to disclose the 
          information required under Sec. 1265.355 to the next higher 
          tier?

                 Subpart E--Excluded Parties List System

1265.500 What is the purpose of the Excluded Parties List System (EPLS)?
1265.505 Who uses the EPLS?
1265.510 Who maintains the EPLS?
1265.515 What specific information is in the EPLS?
1265.520 Who places the information into the EPLS?
1265.525 Whom do I ask if I have questions about a person in the EPLS?
1265.530 Where can I find the EPLS?

   Subpart F--General Principles Relating to Suspension and Debarment 
                                 Actions

1265.600 How do suspension and debarment actions start?
1265.605 How does suspension differ from debarment?
1265.610 What procedures does NASA use in suspension and debarment 
          actions?
1265.615 How does NASA notify a person of a suspension and debarment 
          action?
1265.620 Do Federal agencies coordinate suspension and debarment 
          actions?
1265.625 What is the scope of a suspension or debarment action?
1265.630 May NASA impute the conduct of one person to another?
1265.635 May NASA settle a debarment or suspension action?
1265.640 May a settlement include a voluntary exclusion?
1265.645 Do other Federal agencies know if NASA agrees to a voluntary 
          exclusion?

                          Subpart G--Suspension

1265.700 When may the suspending official issue a suspension?
1265.705 What does the suspending official consider in issuing a 
          suspension?
1265.710 When does a suspension take effect?
1265.715 What notice does the suspending official give me if I am 
          suspended?
1265.720 How may I contest a suspension?

[[Page 396]]

1265.725 How much time do I have to contest a suspension?
1265.730 What information must I provide to the suspending official if I 
          contest a suspension?
1265.735 Under what conditions do I get an additional opportunity to 
          challenge the facts on which the suspension is based?
1265.740 Are suspension proceedings formal?
1265.745 How is fact-finding conducted?
1265.750 What does the suspending official consider in deciding whether 
          to continue or terminate my suspension?
1265.755 When will I know whether the suspension is continued or 
          terminated?
1265.760 How long may my suspension last?

                          Subpart H--Debarment

1265.800 What are the causes for debarment?
1265.805 What notice does the debarring official give me if I am 
          proposed for debarment?
1265.810 When does a debarment take effect?
1265.815 How may I contest a proposed debarment?
1265.820 How much time do I have to contest a proposed debarment?
1265.825 What information must I provide to the debarring official if I 
          contest a proposed debarment?
1265.830 Under what conditions do I get an additional opportunity to 
          challenge the facts on which the proposed debarment is based?
1265.835 Are debarment proceedings formal?
1265.840 How is fact-finding conducted?
1265.845 What does the debarring official consider in deciding whether 
          to debar me?
1265.850 What is the standard of proof in a debarment action?
1265.855 Who has the burden of proof in a debarment action?
1265.860 What factors may influence the debarring official's decision?
1265.865 How long may my debarment last?
1265.870 When do I know if the debarring official debars me?
1265.875 May I ask the debarring official to reconsider a decision to 
          debar me?
1265.880 What factors may influence the debarring official during 
          reconsideration?
1265.885 May the debarring official extend a debarment?

                         Subpart I--Definitions

1265.900 Adequate evidence.
1265.905 Affiliate.
1265.910 Agency.
1265.915 Agent or representative.
1265.920 Civil judgment.
1265.925 Conviction.
1265.930 Debarment.
1265.935 Debarring official.
1265.940 Disqualified.
1265.945 Excluded or exclusion.
1265.950 Excluded Parties List System.
1265.955 Indictment.
1265.960 Ineligible or ineligibility.
1265.965 Legal proceedings.
1265.970 Nonprocurement transaction.
1265.975 Notice.
1265.980 Participant.
1265.985 Person.
1265.990 Preponderance of the evidence.
1265.995 Principal.
1265.1000 Respondent.
1265.1005 State.
1265.1010 Suspending official.
1265.1015 Suspension.
1265.1020 Voluntary exclusion or voluntarily excluded.

Subpart J [Reserved]

Appendix to Part 1265--Covered Transactions

    Authority: Sec. 2455, Pub. L. 103-355, 108 Stat. 3327 (31 U.S.C. 
6101 note); E.O. 11738, 3 CFR, 1973 Comp., p.799; E.O. 12549, 3 CFR, 
1986 Comp., p. 189; E.O. 12689, 3 CFR, 1989 Comp., p. 235; 42 U.S.C. 
2473(c)(1).

    Source:  68 FR 66544, 66573, Nov. 26, 2003, unless otherwise noted.



Sec. 1265.25  How is this part organized?

    (a) This part is subdivided into ten subparts. Each subpart contains 
information related to a broad topic or specific audience with special 
responsibilities, as shown in the following table:

------------------------------------------------------------------------
       In subpart . . .        You will find provisions related to . . .
------------------------------------------------------------------------
A............................  general information about this rule.
B............................  the types of NASA transactions that are
                                covered by the Governmentwide
                                nonprocurement suspension and debarment
                                system.
C............................  the responsibilities of persons who
                                participate in covered transactions.
D............................  the responsibilities of NASA officials
                                who are authorized to enter into covered
                                transactions.
E............................  the responsibilities of Federal agencies
                                for the Excluded Parties List System
                                (Disseminated by the General Services
                                Administration).
F............................  the general principles governing
                                suspension, debarment, voluntary
                                exclusion and settlement.
G............................  suspension actions.
H............................  debarment actions.
I............................  definitions of terms used in this part.
J............................  [Reserved]
------------------------------------------------------------------------


[[Page 397]]

    (b) The following table shows which subparts may be of special 
interest to you, depending on who you are:

------------------------------------------------------------------------
             If you are . . .                   See subpart(s) . . .
------------------------------------------------------------------------
(1) a participant or principal in a         A, B, C, and I.
 nonprocurement transaction.
(2) a respondent in a suspension action...  A, B, F, G and I.
(3) a respondent in a debarment action....  A, B, F, H and I.
(4) a suspending official.................  A, B, D, E, F, G and I.
(5) a debarring official..................  A, B, D, E, F, H and I.
(6) a (n) NASA official authorized to       A, B, D, E and I.
 enter into a covered transaction.
(7) Reserved..............................  J.
------------------------------------------------------------------------



Sec. 1265.50  How is this part written?

    (a) This part uses a ``plain language'' format to make it easier for 
the general public and business community to use. The section headings 
and text, often in the form of questions and answers, must be read 
together.
    (b) Pronouns used within this part, such as ``I'' and ``you,'' 
change from subpart to subpart depending on the audience being 
addressed. The pronoun ``we'' always is NASA.
    (c) The ``Covered Transactions'' diagram in the appendix to this 
part shows the levels or ``tiers'' at which NASA enforces an exclusion 
under this part.



Sec. 1265.75  Do terms in this part have special meanings?

    This part uses terms throughout the text that have special meaning. 
Those terms are defined in Subpart I of this part. For example, three 
important terms are--
    (a) Exclusion or excluded, which refers only to discretionary 
actions taken by a suspending or debarring official under this part or 
the Federal Acquisition Regulation (48 CFR part 9, subpart 9.4);
    (b) Disqualification or disqualified, which refers to prohibitions 
under specific statutes, executive orders (other than Executive Order 
12549 and Executive Order 12689), or other authorities. 
Disqualifications frequently are not subject to the discretion of an 
agency official, may have a different scope than exclusions, or have 
special conditions that apply to the disqualification; and
    (c) Ineligibility or ineligible, which generally refers to a person 
who is either excluded or disqualified.



                           Subpart A--General



Sec. 1265.100  What does this part do?

    This part adopts a governmentwide system of debarment and suspension 
for NASA nonprocurement activities. It also provides for reciprocal 
exclusion of persons who have been excluded under the Federal 
Acquisition Regulation, and provides for the consolidated listing of all 
persons who are excluded, or disqualified by statute, executive order, 
or other legal authority. This part satisfies the requirements in 
section 3 of Executive Order 12549, ``Debarment and Suspension'' (3 CFR 
1986 Comp., p. 189), Executive Order 12689, ``Debarment and Suspension'' 
(3 CFR 1989 Comp., p. 235) and 31 U.S.C. 6101 note (Section 2455, Public 
Law 103-355, 108 Stat. 3327).



Sec. 1265.105  Does this part apply to me?

    Portions of this part (see table at Sec. 1265.25(b)) apply to you 
if you are a(n)--
    (a) Person who has been, is, or may reasonably be expected to be, a 
participant or principal in a covered transaction;
    (b) Respondent (a person against whom NASA has initiated a debarment 
or suspension action);
    (c) NASA debarring or suspending official; or
    (d) NASA official who is authorized to enter into covered 
transactions with non-Federal parties.



Sec. 1265.110  What is the purpose of the nonprocurement debarment and suspension system?

    (a) To protect the public interest, the Federal Government ensures 
the integrity of Federal programs by conducting business only with 
responsible persons.
    (b) A Federal agency uses the nonprocurement debarment and 
suspension system to exclude from Federal programs persons who are not 
presently responsible.
    (c) An exclusion is a serious action that a Federal agency may take 
only to protect the public interest. A Federal agency may not exclude a 
person

[[Page 398]]

or commodity for the purposes of punishment.



Sec. 1265.115  How does an exclusion restrict a person's involvement in covered transactions?

    With the exceptions stated in Sec. Sec. 1265.120, 1265.315, and 
1265.420, a person who is excluded by NASA or any other Federal agency 
may not:
    (a) Be a participant in a(n) NASA transaction that is a covered 
transaction under subpart B of this part;
    (b) Be a participant in a transaction of any other Federal agency 
that is a covered transaction under that agency's regulation for 
debarment and suspension; or
    (c) Act as a principal of a person participating in one of those 
covered transactions.



Sec. 1265.120  May we grant an exception to let an excluded person participate in a covered transaction?

    (a) The Assistant Administrator for Procurement may grant an 
exception permitting an excluded person to participate in a particular 
covered transaction. If the Assistant Administrator for Procurement 
grants an exception, the exception must be in writing and state the 
reason(s) for deviating from the governmentwide policy in Executive 
Order 12549.
    (b) An exception granted by one agency for an excluded person does 
not extend to the covered transactions of another agency.



Sec. 1265.125  Does an exclusion under the nonprocurement system affect a person's eligibility for Federal procurement contracts?

    If any Federal agency excludes a person under its nonprocurement 
common rule on or after August 25, 1995, the excluded person is also 
ineligible to participate in Federal procurement transactions under the 
FAR. Therefore, an exclusion under this part has reciprocal effect in 
Federal procurement transactions.



Sec. 1265.130  Does exclusion under the Federal procurement system affect a person's eligibility to participate in nonprocurement transactions?

    If any Federal agency excludes a person under the FAR on or after 
August 25, 1995, the excluded person is also ineligible to participate 
in nonprocurement covered transactions under this part. Therefore, an 
exclusion under the FAR has reciprocal effect in Federal nonprocurement 
transactions.



Sec. 1265.135  May NASA exclude a person who is not currently participating in a nonprocurement transaction?

    Given a cause that justifies an exclusion under this part, we may 
exclude any person who has been involved, is currently involved, or may 
reasonably be expected to be involved in a covered transaction.



Sec. 1265.140  How do I know if a person is excluded?

    Check the Excluded Parties List System (EPLS) to determine whether a 
person is excluded. The General Services Administration (GSA) maintains 
the EPLS and makes it available, as detailed in subpart E of this part. 
When a Federal agency takes an action to exclude a person under the 
nonprocurement or procurement debarment and suspension system, the 
agency enters the information about the excluded person into the EPLS.



Sec. 1265.145  Does this part address persons who are disqualified, as well as those who are excluded from nonprocurement transactions?

    Except if provided for in Subpart J of this part, this part--
    (a) Addresses disqualified persons only to--
    (1) Provide for their inclusion in the EPLS; and
    (2) State responsibilities of Federal agencies and participants to 
check for disqualified persons before entering into covered 
transactions.
    (b) Does not specify the--
    (1) NASA transactions for which a disqualified person is ineligible. 
Those transactions vary on a case-by-case basis, because they depend on 
the language of the specific statute, Executive order, or regulation 
that caused the disqualification;
    (2) Entities to which the disqualification applies; or
    (3) Process that the agency uses to disqualify a person. Unlike 
exclusion,

[[Page 399]]

disqualification is frequently not a discretionary action that a Federal 
agency takes.



                     Subpart B--Covered Transactions



Sec. 1265.200  What is a covered transaction?

    A covered transaction is a nonprocurement or procurement transaction 
that is subject to the prohibitions of this part. It may be a 
transaction at--
    (a) The primary tier, between a Federal agency and a person (see 
appendix to this part); or
    (b) A lower tier, between a participant in a covered transaction and 
another person.



Sec. 1265.205  Why is it important if a particular transaction is a covered transaction?

    The importance of a covered transaction depends upon who you are.
    (a) As a participant in the transaction, you have the 
responsibilities laid out in Subpart C of this part. Those include 
responsibilities to the person or Federal agency at the next higher tier 
from whom you received the transaction, if any. They also include 
responsibilities if you subsequently enter into other covered 
transactions with persons at the next lower tier.
    (b) As a Federal official who enters into a primary tier 
transaction, you have the responsibilities laid out in subpart D of this 
part.
    (c) As an excluded person, you may not be a participant or principal 
in the transaction unless--
    (1) The person who entered into the transaction with you allows you 
to continue your involvement in a transaction that predates your 
exclusion, as permitted under Sec. 1265.310 or Sec. 1265.415; or
    (2) A(n) NASA official obtains an exception from the Assistant 
Administrator for Procurement to allow you to be involved in the 
transaction, as permitted under Sec. 1265.120.



Sec. 1265.210  Which nonprocurement transactions are covered transactions?

    All nonprocurement transactions, as defined in Sec. 1265.970, are 
covered transactions unless listed in Sec. 1265.215. (See appendix to 
this part.)



Sec. 1265.215  Which nonprocurement transactions are not covered transactions?

    The following types of nonprocurement transactions are not covered 
transactions:
    (a) A direct award to--
    (1) A foreign government or foreign governmental entity;
    (2) A public international organization;
    (3) An entity owned (in whole or in part) or controlled by a foreign 
government; or
    (4) Any other entity consisting wholly or partially of one or more 
foreign governments or foreign governmental entities.
    (b) A benefit to an individual as a personal entitlement without 
regard to the individual's present responsibility (but benefits received 
in an individual's business capacity are not excepted). For example, if 
a person receives social security benefits under the Supplemental 
Security Income provisions of the Social Security Act, 42 U.S.C. 1301 et 
seq., those benefits are not covered transactions and, therefore, are 
not affected if the person is excluded.
    (c) Federal employment.
    (d) A transaction that NASA needs to respond to a national or 
agency-recognized emergency or disaster.
    (e) A permit, license, certificate, or similar instrument issued as 
a means to regulate public health, safety, or the environment, unless 
NASA specifically designates it to be a covered transaction.
    (f) An incidental benefit that results from ordinary governmental 
operations.
    (g) Any other transaction if the application of an exclusion to the 
transaction is prohibited by law.

[[Page 400]]



Sec. 1265.220  Are any procurement contracts included as covered transactions?

    (a) Covered transactions under this part--
    (1) Do not include any procurement contracts awarded directly by a 
Federal agency; but
    (2) Do include some procurement contracts awarded by non-Federal 
participants in nonprocurement covered transactions (see appendix to 
this part).
    (b) Specifically, a contract for goods or services is a covered 
transaction if any of the following applies:
    (1) The contract is awarded by a participant in a nonprocurement 
transaction that is covered under Sec. 1265.210, and the amount of the 
contract is expected to equal or exceed $25,000.
    (2) The contract requires the consent of a(n) NASA official. In that 
case, the contract, regardless of the amount, always is a covered 
transaction, and it does not matter who awarded it. For example, it 
could be a subcontract awarded by a contractor at a tier below a 
nonprocurement transaction, as shown in the appendix to this part.
    (3) The contract is for federally-required audit services.



Sec. 1265.225  How do I know if a transaction in which I may participate is a covered transaction?

    As a participant in a transaction, you will know that it is a 
covered transaction because the agency regulations governing the 
transaction, the appropriate agency official, or participant at the next 
higher tier who enters into the transaction with you, will tell you that 
you must comply with applicable portions of this part.



   Subpart C--Responsibilities of Participants Regarding Transactions

                    Doing Business With Other Persons



Sec. 1265.300  What must I do before I enter into a covered transaction with another person at the next lower tier?

    When you enter into a covered transaction with another person at the 
next lower tier, you must verify that the person with whom you intend to 
do business is not excluded or disqualified. You do this by:
    (a) Checking the EPLS; or
    (b) Collecting a certification from that person if allowed by this 
rule; or
    (c) Adding a clause or condition to the covered transaction with 
that person.



Sec. 1265.305  May I enter into a covered transaction with an excluded or disqualified person?

    (a) You as a participant may not enter into a covered transaction 
with an excluded person, unless NASA grants an exception under Sec. 
1265.120.
    (b) You may not enter into any transaction with a person who is 
disqualified from that transaction, unless you have obtained an 
exception under the disqualifying statute, Executive order, or 
regulation.



Sec. 1265.310  What must I do if a Federal agency excludes a person with whom I am already doing business in a covered transaction?

    (a) You as a participant may continue covered transactions with an 
excluded person if the transactions were in existence when the agency 
excluded the person. However, you are not required to continue the 
transactions, and you may consider termination. You should make a 
decision about whether to terminate and the type of termination action, 
if any, only after a thorough review to ensure that the action is proper 
and appropriate.
    (b) You may not renew or extend covered transactions (other than no-
cost time extensions) with any excluded person, unless NASA grants an 
exception under Sec. 1265.120.



Sec. 1265.315  May I use the services of an excluded person as a principal under a covered transaction?

    (a) You as a participant may continue to use the services of an 
excluded person as a principal under a covered transaction if you were 
using the services of that person in the transaction before the person 
was excluded. However, you are not required to continue using that 
person's services as a principal. You should make a decision

[[Page 401]]

about whether to discontinue that person's services only after a 
thorough review to ensure that the action is proper and appropriate.
    (b) You may not begin to use the services of an excluded person as a 
principal under a covered transaction unless NASA grants an exception 
under Sec. 1265.120.



Sec. 1265.320  Must I verify that principals of my covered transactions are eligible to participate?

    Yes, you as a participant are responsible for determining whether 
any of your principals of your covered transactions is excluded or 
disqualified from participating in the transaction. You may decide the 
method and frequency by which you do so. You may, but you are not 
required to, check the EPLS.



Sec. 1265.325  What happens if I do business with an excluded person in a covered transaction?

    If as a participant you knowingly do business with an excluded 
person, we may disallow costs, annul or terminate the transaction, issue 
a stop work order, debar or suspend you, or take other remedies as 
appropriate.



Sec. 1265.330  What requirements must I pass down to persons at lower tiers with whom I intend to do business?

    Before entering into a covered transaction with a participant at the 
next lower tier, you must require that participant to--
    (a) Comply with this subpart as a condition of participation in the 
transaction. You may do so using any method(s), unless Sec. 1265.440 
requires you to use specific methods.
    (b) Pass the requirement to comply with this subpart to each person 
with whom the participant enters into a covered transaction at the next 
lower tier.

            Disclosing Information--Primary Tier Participants



Sec. 1265.335  What information must I provide before entering into a covered transaction with NASA?

    Before you enter into a covered transaction at the primary tier, you 
as the participant must notify the NASA office that is entering into the 
transaction with you, if you know that you or any of the principals for 
that covered transaction:
    (a) Are presently excluded or disqualified;
    (b) Have been convicted within the preceding three years of any of 
the offenses listed in Sec. 1265.800(a) or had a civil judgment 
rendered against you for one of those offenses within that time period;
    (c) Are presently indicted for or otherwise criminally or civilly 
charged by a governmental entity (Federal, State or local) with 
commission of any of the offenses listed in Sec. 1265.800(a); or
    (d) Have had one or more public transactions (Federal, State, or 
local) terminated within the preceding three years for cause or default.



Sec. 1265.340  If I disclose unfavorable information required under Sec. 1265.335, will I be prevented from participating in the transaction?

    As a primary tier participant, your disclosure of unfavorable 
information about yourself or a principal under Sec. 1265.335 will not 
necessarily cause us to deny your participation in the covered 
transaction. We will consider the information when we determine whether 
to enter into the covered transaction. We also will consider any 
additional information or explanation that you elect to submit with the 
disclosed information.



Sec. 1265.345  What happens if I fail to disclose information required under Sec. 1265.335?

    If we later determine that you failed to disclose information under 
Sec. 1265.335 that you knew at the time you entered into the covered 
transaction, we may--
    (a) Terminate the transaction for material failure to comply with 
the terms and conditions of the transaction; or
    (b) Pursue any other available remedies, including suspension and 
debarment.

[[Page 402]]



Sec. 1265.350  What must I do if I learn of information required under Sec. 1265.335 after entering into a covered transaction with NASA?

    At any time after you enter into a covered transaction, you must 
give immediate written notice to the NASA office with which you entered 
into the transaction if you learn either that--
    (a) You failed to disclose information earlier, as required by Sec. 
1265.335; or
    (b) Due to changed circumstances, you or any of the principals for 
the transaction now meet any of the criteria in Sec. 1265.335.

             Disclosing Information--Lower Tier Participants



Sec. 1265.355  What information must I provide to a higher tier participant before entering into a covered transaction with that participant?

    Before you enter into a covered transaction with a person at the 
next higher tier, you as a lower tier participant must notify that 
person if you know that you or any of the principals are presently 
excluded or disqualified.



Sec. 1265.360  What happens if I fail to disclose the information required under Sec. 1265.355?

    If we later determine that you failed to tell the person at the 
higher tier that you were excluded or disqualified at the time you 
entered into the covered transaction with that person, we may pursue any 
available remedies, including suspension and debarment.



Sec. 1265.365  What must I do if I learn of information required under Sec. 1265.355 after entering into a covered transaction with a higher tier participant?

    At any time after you enter into a lower tier covered transaction 
with a person at a higher tier, you must provide immediate written 
notice to that person if you learn either that--
    (a) You failed to disclose information earlier, as required by Sec. 
1265.355; or
    (b) Due to changed circumstances, you or any of the principals for 
the transaction now meet any of the criteria in Sec. 1265.355.



  Subpart D--Responsibilities of NASA Officials Regarding Transactions



Sec. 1265.400  May I enter into a transaction with an excluded or disqualified person?

    (a) You as an agency official may not enter into a covered 
transaction with an excluded person unless you obtain an exception under 
Sec. 1265.120.
    (b) You may not enter into any transaction with a person who is 
disqualified from that transaction, unless you obtain a waiver or 
exception under the statute, Executive order, or regulation that is the 
basis for the person's disqualification.



Sec. 1265.405  May I enter into a covered transaction with a participant if a principal of the transaction is excluded?

    As an agency official, you may not enter into a covered transaction 
with a participant if you know that a principal of the transaction is 
excluded, unless you obtain an exception under Sec. 1265.120.



Sec. 1265.410  May I approve a participant's use of the services of an excluded person?

    After entering into a covered transaction with a participant, you as 
an agency official may not approve a participant's use of an excluded 
person as a principal under that transaction, unless you obtain an 
exception under Sec. 1265.120.



Sec. 1265.415  What must I do if a Federal agency excludes the participant or a principal after I enter into a covered transaction?

    (a) You as an agency official may continue covered transactions with 
an excluded person, or under which an excluded person is a principal, if 
the transactions were in existence when the person was excluded. You are 
not required to continue the transactions, however, and you may consider 
termination. You should make a decision about whether to terminate and 
the type of termination action, if any, only after a thorough review to 
ensure that the action is proper.

[[Page 403]]

    (b) You may not renew or extend covered transactions (other than no-
cost time extensions) with any excluded person, or under which an 
excluded person is a principal, unless you obtain an exception under 
Sec. 1265.120.



Sec. 1265.420  May I approve a transaction with an excluded or disqualified person at a lower tier?

    If a transaction at a lower tier is subject to your approval, you as 
an agency official may not approve--
    (a) A covered transaction with a person who is currently excluded, 
unless you obtain an exception under Sec. 1265.120; or
    (b) A transaction with a person who is disqualified from that 
transaction, unless you obtain a waiver or exception under the statute, 
Executive order, or regulation that is the basis for the person's 
disqualification.



Sec. 1265.425  When do I check to see if a person is excluded or disqualified?

    As an agency official, you must check to see if a person is excluded 
or disqualified before you--
    (a) Enter into a primary tier covered transaction;
    (b) Approve a principal in a primary tier covered transaction;
    (c) Approve a lower tier participant if agency approval of the lower 
tier participant is required; or
    (d) Approve a principal in connection with a lower tier transaction 
if agency approval of the principal is required.



Sec. 1265.430  How do I check to see if a person is excluded or disqualified?

    You check to see if a person is excluded or disqualified in two 
ways:
    (a) You as an agency official must check the EPLS when you take any 
action listed in Sec. 1265.425.
    (b) You must review information that a participant gives you, as 
required by Sec. 1265.335, about its status or the status of the 
principals of a transaction.



Sec. 1265.435  What must I require of a primary tier participant?

    You as an agency official must require each participant in a primary 
tier covered transaction to--
    (a) Comply with subpart C of this part as a condition of 
participation in the transaction; and
    (b) Communicate the requirement to comply with Subpart C of this 
part to persons at the next lower tier with whom the primary tier 
participant enters into covered transactions.



Sec. 1265.440  What method do I use to communicate those requirements to participants?

    To communicate the requirements to participants, you must include a 
term or condition in the transaction requiring the participant's 
compliance with subpart C of this part and requiring them to include a 
similar term or condition in lower tier covered transactions.

[68 FR 66574, Nov. 26, 2003]



Sec. 1265.445  What action may I take if a primary tier participant knowingly does business with an excluded or disqualified person?

    If a participant knowingly does business with an excluded or 
disqualified person, you as an agency official may refer the matter for 
suspension and debarment consideration. You may also disallow costs, 
annul or terminate the transaction, issue a stop work order, or take any 
other appropriate remedy.



Sec. 1265.450  What action may I take if a primary tier participant fails to disclose the information required under Sec. 1265.335?

    If you as an agency official determine that a participant failed to 
disclose information, as required by Sec. 1265.335, at the time it 
entered into a covered transaction with you, you may--
    (a) Terminate the transaction for material failure to comply with 
the terms and conditions of the transaction; or
    (b) Pursue any other available remedies, including suspension and 
debarment.



Sec. 1265.455  What may I do if a lower tier participant fails to disclose the information required under Sec. 1265.355 to the next higher tier?

    If you as an agency official determine that a lower tier participant

[[Page 404]]

failed to disclose information, as required by Sec. 1265.355, at the 
time it entered into a covered transaction with a participant at the 
next higher tier, you may pursue any remedies available to you, 
including the initiation of a suspension or debarment action.



                 Subpart E--Excluded Parties List System



Sec. 1265.500  What is the purpose of the Excluded Parties List System (EPLS)?

    The EPLS is a widely available source of the most current 
information about persons who are excluded or disqualified from covered 
transactions.



Sec. 1265.505  Who uses the EPLS?

    (a) Federal agency officials use the EPLS to determine whether to 
enter into a transaction with a person, as required under Sec. 
1265.430.
    (b) Participants also may, but are not required to, use the EPLS to 
determine if--
    (1) Principals of their transactions are excluded or disqualified, 
as required under Sec. 1265.320; or
    (2) Persons with whom they are entering into covered transactions at 
the next lower tier are excluded or disqualified.
    (c) The EPLS is available to the general public.



Sec. 1265.510  Who maintains the EPLS?

    In accordance with the OMB guidelines, the General Services 
Administration (GSA) maintains the EPLS. When a Federal agency takes an 
action to exclude a person under the nonprocurement or procurement 
debarment and suspension system, the agency enters the information about 
the excluded person into the EPLS.



Sec. 1265.515  What specific information is in the EPLS?

    (a) At a minimum, the EPLS indicates--
    (1) The full name (where available) and address of each excluded or 
disqualified person, in alphabetical order, with cross references if 
more than one name is involved in a single action;
    (2) The type of action;
    (3) The cause for the action;
    (4) The scope of the action;
    (5) Any termination date for the action;
    (6) The agency and name and telephone number of the agency point of 
contact for the action; and
    (7) The Dun and Bradstreet Number (DUNS), or other similar code 
approved by the GSA, of the excluded or disqualified person, if 
available.
    (b)(1) The database for the EPLS includes a field for the Taxpayer 
Identification Number (TIN) (the social security number (SSN) for an 
individual) of an excluded or disqualified person.
    (2) Agencies disclose the SSN of an individual to verify the 
identity of an individual, only if permitted under the Privacy Act of 
1974 and, if appropriate, the Computer Matching and Privacy Protection 
Act of 1988, as codified in 5 U.S.C. 552(a).



Sec. 1265.520  Who places the information into the EPLS?

    Federal officials who take actions to exclude persons under this 
part or officials who are responsible for identifying disqualified 
persons must enter the following information about those persons into 
the EPLS:
    (a) Information required by Sec. 1265.515(a);
    (b) The Taxpayer Identification Number (TIN) of the excluded or 
disqualified person, including the social security number (SSN) for an 
individual, if the number is available and may be disclosed under law;
    (c) Information about an excluded or disqualified person, generally 
within five working days, after--
    (1) Taking an exclusion action;
    (2) Modifying or rescinding an exclusion action;
    (3) Finding that a person is disqualified; or
    (4) Finding that there has been a change in the status of a person 
who is listed as disqualified.



Sec. 1265.525  Whom do I ask if I have questions about a person in the EPLS?

    If you have questions about a person in the EPLS, ask the point of 
contact for the Federal agency that placed the person's name into the 
EPLS. You may

[[Page 405]]

find the agency point of contact from the EPLS.



Sec. 1265.530  Where can I find the EPLS?

    (a) You may access the EPLS through the Internet, currently at 
http://epls.arnet.gov.
    (b) As of November 26, 2003, you may also subscribe to a printed 
version. However, we anticipate discontinuing the printed version. Until 
it is discontinued, you may obtain the printed version by purchasing a 
yearly subscription from the Superintendent of Documents, U.S. 
Government Printing Office, Washington, DC 20402, or by calling the 
Government Printing Office Inquiry and Order Desk at (202) 783-3238.



   Subpart F--General Principles Relating to Suspension and Debarment 
                                 Actions



Sec. 1265.600  How do suspension and debarment actions start?

    When we receive information from any source concerning a cause for 
suspension or debarment, we will promptly report and investigate it. We 
refer the question of whether to suspend or debar you to our suspending 
or debarring official for consideration, if appropriate.



Sec. 1265.605  How does suspension differ from debarment?

    Suspension differs from debarment in that--

------------------------------------------------------------------------
      A suspending official . . .           A debarring official . . .
------------------------------------------------------------------------
(a) Imposes suspension as a temporary    Imposes debarment for a
 status of ineligibility for              specified period as a final
 procurement and nonprocurement           determination that a person is
 transactions, pending completion of an   not presently responsible.
 investigation or legal proceedings.
(b) Must--.............................  Must conclude, based on a
(1) Have adequate evidence that there     preponderance of the evidence,
 may be a cause for debarment of a        that the person has engaged in
 person; and.                             conduct that warrants
(2) Conclude that immediate action is     debarment.
 necessary to protect the Federal
 interest.
(c) Usually imposes the suspension       Imposes debarment after giving
 first, and then promptly notifies the    the respondent notice of the
 suspended person, giving the person an   action and an opportunity to
 opportunity to contest the suspension    contest the proposed
 and have it lifted.                      debarment.
------------------------------------------------------------------------



Sec. 1265.610  What procedures does NASA use in suspension and debarment actions?

    In deciding whether to suspend or debar you, we handle the actions 
as informally as practicable, consistent with principles of fundamental 
fairness.
    (a) For suspension actions, we use the procedures in this subpart 
and subpart G of this part.
    (b) For debarment actions, we use the procedures in this subpart and 
subpart H of this part.



Sec. 1265.615  How does NASA notify a person of a suspension or debarment action?

    (a) The suspending or debarring official sends a written notice to 
the last known street address, facsimile number, or e-mail address of--
    (1) You or your identified counsel; or
    (2) Your agent for service of process, or any of your partners, 
officers, directors, owners, or joint venturers.
    (b) The notice is effective if sent to any of these persons.



Sec. 1265.620  Do Federal agencies coordinate suspension and debarment actions?

    Yes, when more than one Federal agency has an interest in a 
suspension or debarment, the agencies may consider designating one 
agency as the lead agency for making the decision. Agencies are 
encouraged to establish methods and procedures for coordinating their 
suspension and debarment actions.



Sec. 1265.625  What is the scope of a suspension or debarment?

    If you are suspended or debarred, the suspension or debarment is 
effective as follows:
    (a) Your suspension or debarment constitutes suspension or debarment 
of all of your divisions and other organizational elements from all 
covered

[[Page 406]]

transactions, unless the suspension or debarment decision is limited--
    (1) By its terms to one or more specifically identified individuals, 
divisions, or other organizational elements; or
    (2) To specific types of transactions.
    (b) Any affiliate of a participant may be included in a suspension 
or debarment action if the suspending or debarring official--
    (1) Officially names the affiliate in the notice; and
    (2) Gives the affiliate an opportunity to contest the action.



Sec. 1265.630  May NASA impute conduct of one person to another?

    For purposes of actions taken under this rule, we may impute conduct 
as follows:
    (a) Conduct imputed from an individual to an organization. We may 
impute the fraudulent, criminal, or other improper conduct of any 
officer, director, shareholder, partner, employee, or other individual 
associated with an organization, to that organization when the improper 
conduct occurred in connection with the individual's performance of 
duties for or on behalf of that organization, or with the organization's 
knowledge, approval or acquiescence. The organization's acceptance of 
the benefits derived from the conduct is evidence of knowledge, approval 
or acquiescence.
    (b) Conduct imputed from an organization to an individual, or 
between individuals. We may impute the fraudulent, criminal, or other 
improper conduct of any organization to an individual, or from one 
individual to another individual, if the individual to whom the improper 
conduct is imputed either participated in, had knowledge of, or reason 
to know of the improper conduct.
    (c) Conduct imputed from one organization to another organization. 
We may impute the fraudulent, criminal, or other improper conduct of one 
organization to another organization when the improper conduct occurred 
in connection with a partnership, joint venture, joint application, 
association or similar arrangement, or when the organization to whom the 
improper conduct is imputed has the power to direct, manage, control or 
influence the activities of the organization responsible for the 
improper conduct. Acceptance of the benefits derived from the conduct is 
evidence of knowledge, approval or acquiescence.



Sec. 1265.635  May NASA settle a debarment or suspension action?

    Yes, we may settle a debarment or suspension action at any time if 
it is in the best interest of the Federal Government.



Sec. 1265.640  May a settlement include a voluntary exclusion?

    Yes, if we enter into a settlement with you in which you agree to be 
excluded, it is called a voluntary exclusion and has governmentwide 
effect.



Sec. 1265.645  Do other Federal agencies know if NASA agrees to a voluntary exclusion?

    (a) Yes, we enter information regarding a voluntary exclusion into 
the EPLS.
    (b) Also, any agency or person may contact us to find out the 
details of a voluntary exclusion.



                          Subpart G--Suspension



Sec. 1265.700  When may the suspending official issue a suspension?

    Suspension is a serious action. Using the procedures of this subpart 
and subpart F of this part, the suspending official may impose 
suspension only when that official determines that--
    (a) There exists an indictment for, or other adequate evidence to 
suspect, an offense listed under Sec. 1265.800(a), or
    (b) There exists adequate evidence to suspect any other cause for 
debarment listed under Sec. 1265.800(b) through (d); and
    (c) Immediate action is necessary to protect the public interest.



Sec. 1265.705  What does the suspending official consider in issuing a suspension?

    (a) In determining the adequacy of the evidence to support the 
suspension, the suspending official considers how much information is 
available, how credible it is given the circumstances, whether or not 
important allegations are corroborated, and what inferences

[[Page 407]]

can reasonably be drawn as a result. During this assessment, the 
suspending official may examine the basic documents, including grants, 
cooperative agreements, loan authorizations, contracts, and other 
relevant documents.
    (b) An indictment, conviction, civil judgment, or other official 
findings by Federal, State, or local bodies that determine factual and/
or legal matters, constitutes adequate evidence for purposes of 
suspension actions.
    (c) In deciding whether immediate action is needed to protect the 
public interest, the suspending official has wide discretion. For 
example, the suspending official may infer the necessity for immediate 
action to protect the public interest either from the nature of the 
circumstances giving rise to a cause for suspension or from potential 
business relationships or involvement with a program of the Federal 
Government.



Sec. 1265.710  When does a suspension take effect?

    A suspension is effective when the suspending official signs the 
decision to suspend.



Sec. 1265.715  What notice does the suspending official give me if I am suspended?

    After deciding to suspend you, the suspending official promptly 
sends you a Notice of Suspension advising you--
    (a) That you have been suspended;
    (b) That your suspension is based on--
    (1) An indictment;
    (2) A conviction;
    (3) Other adequate evidence that you have committed irregularities 
which seriously reflect on the propriety of further Federal Government 
dealings with you; or
    (4) Conduct of another person that has been imputed to you, or your 
affiliation with a suspended or debarred person;
    (c) Of any other irregularities in terms sufficient to put you on 
notice without disclosing the Federal Government's evidence;
    (d) Of the cause(s) upon which we relied under Sec. 1265.700 for 
imposing suspension;
    (e) That your suspension is for a temporary period pending the 
completion of an investigation or resulting legal or debarment 
proceedings;
    (f) Of the applicable provisions of this subpart, Subpart F of this 
part, and any other NASA procedures governing suspension decision 
making; and
    (g) Of the governmentwide effect of your suspension from procurement 
and nonprocurement programs and activities.



Sec. 1265.720  How may I contest a suspension?

    If you as a respondent wish to contest a suspension, you or your 
representative must provide the suspending official with information in 
opposition to the suspension. You may do this orally or in writing, but 
any information provided orally that you consider important must also be 
submitted in writing for the official record.



Sec. 1265.725  How much time do I have to contest a suspension?

    (a) As a respondent you or your representative must either send, or 
make rrangements to appear and present, the information and argument to 
the suspending official within 30 days after you receive the Notice of 
Suspension.
    (b) We consider the notice to be received by you--
    (1) When delivered, if we mail the notice to the last known street 
address, or five days after we send it if the letter is undeliverable;
    (2) When sent, if we send the notice by facsimile or five days after 
we send it if the facsimile is undeliverable; or
    (3) When delivered, if we send the notice by e-mail or five days 
after we send it if the e-mail is undeliverable.



Sec. 1265.730  What information must I provide to the suspending official if I contest a suspension?

    (a) In addition to any information and argument in opposition, as a 
respondent your submission to the suspending official must identify--
    (1) Specific facts that contradict the statements contained in the 
Notice of Suspension. A general denial is insufficient to raise a 
genuine dispute over facts material to the suspension;

[[Page 408]]

    (2) All existing, proposed, or prior exclusions under regulations 
implementing E.O. 12549 and all similar actions taken by Federal, state, 
or local agencies, including administrative agreements that affect only 
those agencies;
    (3) All criminal and civil proceedings not included in the Notice of 
Suspension that grew out of facts relevant to the cause(s) stated in the 
notice; and
    (4) All of your affiliates.
    (b) If you fail to disclose this information, or provide false 
information, NASA may seek further criminal, civil or administrative 
action against you, as appropriate.



Sec. 1265.735  Under what conditions do I get an additional opportunity to challenge the facts on which the suspension is based?

    (a) You as a respondent will not have an additional opportunity to 
challenge the facts if the suspending official determines that--
    (1) Your suspension is based upon an indictment, conviction, civil 
judgment, or other finding by a Federal, State, or local body for which 
an opportunity to contest the facts was provided;
    (2) Your presentation in opposition contains only general denials to 
information contained in the Notice of Suspension;
    (3) The issues raised in your presentation in opposition to the 
suspension are not factual in nature, or are not material to the 
suspending official's initial decision to suspend, or the official's 
decision whether to continue the suspension; or
    (4) On the basis of advice from the Department of Justice, an office 
of the United States Attorney, a State attorney general's office, or a 
State or local prosecutor's office, that substantial interests of the 
government in pending or contemplated legal proceedings based on the 
same facts as the suspension would be prejudiced by conducting fact-
finding.
    (b) You will have an opportunity to challenge the facts if the 
suspending official determines that--
    (1) The conditions in paragraph (a) of this section do not exist; 
and
    (2) Your presentation in opposition raises a genuine dispute over 
facts material to the suspension.
    (c) If you have an opportunity to challenge disputed material facts 
under this section, the suspending official or designee must conduct 
additional proceedings to resolve those facts.



Sec. 1265.740  Are suspension proceedings formal?

    (a) Suspension proceedings are conducted in a fair and informal 
manner. The suspending official may use flexible procedures to allow you 
to present matters in opposition. In so doing, the suspending official 
is not required to follow formal rules of evidence or procedure in 
creating an official record upon which the official will base a final 
suspension decision.
    (b) You as a respondent or your representative must submit any 
documentary evidence you want the suspending official to consider.



Sec. 1265.745  How is fact-finding conducted?

    (a) If fact-finding is conducted--
    (1) You may present witnesses and other evidence, and confront any 
witness presented; and
    (2) The fact-finder must prepare written findings of fact for the 
record.
    (b) A transcribed record of fact-finding proceedings must be made, 
unless you as a respondent and NASA agree to waive it in advance. If you 
want a copy of the transcribed record, you may purchase it.



Sec. 1265.750  What does the suspending official consider in deciding whether to continue or terminate my suspension?

    (a) The suspending official bases the decision on all information 
contained in the official record. The record includes--
    (1) All information in support of the suspending official's initial 
decision to suspend you;
    (2) Any further information and argument presented in support of, or 
opposition to, the suspension; and
    (3) Any transcribed record of fact-finding proceedings.
    (b) The suspending official may refer disputed material facts to 
another official for findings of fact. The suspending official may 
reject any resulting findings, in whole or in part, only after

[[Page 409]]

specifically determining them to be arbitrary, capricious, or clearly 
erroneous.



Sec. 1265.755  When will I know whether the suspension is continued or terminated?

    The suspending official must make a written decision whether to 
continue, modify, or terminate your suspension within 45 days of closing 
the official record. The official record closes upon the suspending 
official's receipt of final submissions, information and findings of 
fact, if any. The suspending official may extend that period for good 
cause.



Sec. 1265.760  How long may my suspension last?

    (a) If legal or debarment proceedings are initiated at the time of, 
or during your suspension, the suspension may continue until the 
conclusion of those proceedings. However, if proceedings are not 
initiated, a suspension may not exceed 12 months.
    (b) The suspending official may extend the 12 month limit under 
paragraph (a) of this section for an additional 6 months if an office of 
a U.S. Assistant Attorney General, U.S. Attorney, or other responsible 
prosecuting official requests an extension in writing. In no event may a 
suspension exceed 18 months without initiating proceedings under 
paragraph (a) of this section.
    (c) The suspending official must notify the appropriate officials 
under paragraph (b) of this section of an impending termination of a 
suspension at least 30 days before the 12 month period expires to allow 
the officials an opportunity to request an extension.



                          Subpart H--Debarment



Sec. 1265.800  What are the causes for debarment?

    We may debar a person for--
    (a) Conviction of or civil judgment for--
    (1) Commission of fraud or a criminal offense in connection with 
obtaining, attempting to obtain, or performing a public or private 
agreement or transaction;
    (2) Violation of Federal or State antitrust statutes, including 
those proscribing price fixing between competitors, allocation of 
customers between competitors, and bid rigging;
    (3) Commission of embezzlement, theft, forgery, bribery, 
falsification or destruction of records, making false statements, tax 
evasion, receiving stolen property, making false claims, or obstruction 
of justice; or
    (4) Commission of any other offense indicating a lack of business 
integrity or business honesty that seriously and directly affects your 
present responsibility;
    (b) Violation of the terms of a public agreement or transaction so 
serious as to affect the integrity of an agency program, such as--
    (1) A willful failure to perform in accordance with the terms of one 
or more public agreements or transactions;
    (2) A history of failure to perform or of unsatisfactory performance 
of one or more public agreements or transactions; or
    (3) A willful violation of a statutory or regulatory provision or 
requirement applicable to a public agreement or transaction;
    (c) Any of the following causes:
    (1) A nonprocurement debarment by any Federal agency taken before 
October 1, 1988, or a procurement debarment by any Federal agency taken 
pursuant to 48 CFR part 9, subpart 9.4, before August 25, 1995;
    (2) Knowingly doing business with an ineligible person, except as 
permitted under Sec. 1265.120;
    (3) Failure to pay a single substantial debt, or a number of 
outstanding debts (including disallowed costs and overpayments, but not 
including sums owed the Federal Government under the Internal Revenue 
Code) owed to any Federal agency or instrumentality, provided the debt 
is uncontested by the debtor or, if contested, provided that the 
debtor's legal and administrative remedies have been exhausted;
    (4) Violation of a material provision of a voluntary exclusion 
agreement entered into under Sec. 1265.640 or of any settlement of a 
debarment or suspension action; or
    (5) Violation of the provisions of the Drug-Free Workplace Act of 
1988 (41 U.S.C. 701); or

[[Page 410]]

    (d) Any other cause of so serious or compelling a nature that it 
affects your present responsibility.



Sec. 1265.805  What notice does the debarring official give me if I am proposed for debarment?

    After consideration of the causes in Sec. 1265.800 of this subpart, 
if the debarring official proposes to debar you, the official sends you 
a Notice of Proposed Debarment, pursuant to Sec. 1265.615, advising 
you--
    (a) That the debarring official is considering debarring you;
    (b) Of the reasons for proposing to debar you in terms sufficient to 
put you on notice of the conduct or transactions upon which the proposed 
debarment is based;
    (c) Of the cause(s) under Sec. 1265.800 upon which the debarring 
official relied for proposing your debarment;
    (d) Of the applicable provisions of this subpart, Subpart F of this 
part, and any other NASA procedures governing debarment; and
    (e) Of the governmentwide effect of a debarment from procurement and 
nonprocurement programs and activities.



Sec. 1265.810  When does a debarment take effect?

    A debarment is not effective until the debarring official issues a 
decision. The debarring official does not issue a decision until the 
respondent has had an opportunity to contest the proposed debarment.



Sec. 1265.815  How may I contest a proposed debarment?

    If you as a respondent wish to contest a proposed debarment, you or 
your representative must provide the debarring official with information 
in opposition to the proposed debarment. You may do this orally or in 
writing, but any information provided orally that you consider important 
must also be submitted in writing for the official record.



Sec. 1265.820  How much time do I have to contest a proposed debarment?

    (a) As a respondent you or your representative must either send, or 
make arrangements to appear and present, the information and argument to 
the debarring official within 30 days after you receive the Notice of 
Proposed Debarment.
    (b) We consider the Notice of Proposed Debarment to be received by 
you--
    (1) When delivered, if we mail the notice to the last known street 
address, or five days after we send it if the letter is undeliverable;
    (2) When sent, if we send the notice by facsimile or five days after 
we send it if the facsimile is undeliverable; or
    (3) When delivered, if we send the notice by e-mail or five days 
after we send it if the e-mail is undeliverable.



Sec. 1265.825  What information must I provide to the debarring official if I contest a proposed debarment?

    (a) In addition to any information and argument in opposition, as a 
respondent your submission to the debarring official must identify--
    (1) Specific facts that contradict the statements contained in the 
Notice of Proposed Debarment. Include any information about any of the 
factors listed in Sec. 1265.860. A general denial is insufficient to 
raise a genuine dispute over facts material to the debarment;
    (2) All existing, proposed, or prior exclusions under regulations 
implementing E.O. 12549 and all similar actions taken by Federal, State, 
or local agencies, including administrative agreements that affect only 
those agencies;
    (3) All criminal and civil proceedings not included in the Notice of 
Proposed Debarment that grew out of facts relevant to the cause(s) 
stated in the notice; and
    (4) All of your affiliates.
    (b) If you fail to disclose this information, or provide false 
information, NASA may seek further criminal, civil or administrative 
action against you, as appropriate.



Sec. 1265.830  Under what conditions do I get an additional opportunity to challenge the facts on which a proposed debarment is based?

    (a) You as a respondent will not have an additional opportunity to 
challenge the facts if the debarring official determines that--
    (1) Your debarment is based upon a conviction or civil judgment;

[[Page 411]]

    (2) Your presentation in opposition contains only general denials to 
information contained in the Notice of Proposed Debarment; or
    (3) The issues raised in your presentation in opposition to the 
proposed debarment are not factual in nature, or are not material to the 
debarring official's decision whether to debar.
    (b) You will have an additional opportunity to challenge the facts 
if the debarring official determines that--
    (1) The conditions in paragraph (a) of this section do not exist; 
and
    (2) Your presentation in opposition raises a genuine dispute over 
facts material to the proposed debarment.
    (c) If you have an opportunity to challenge disputed material facts 
under this section, the debarring official or designee must conduct 
additional proceedings to resolve those facts.



Sec. 1265.835  Are debarment proceedings formal?

    (a) Debarment proceedings are conducted in a fair and informal 
manner. The debarring official may use flexible procedures to allow you 
as a respondent to present matters in opposition. In so doing, the 
debarring official is not required to follow formal rules of evidence or 
procedure in creating an official record upon which the official will 
base the decision whether to debar.
    (b) You or your representative must submit any documentary evidence 
you want the debarring official to consider.



Sec. 1265.840  How is fact-finding conducted?

    (a) If fact-finding is conducted--
    (1) You may present witnesses and other evidence, and confront any 
witness presented; and
    (2) The fact-finder must prepare written findings of fact for the 
record.
    (b) A transcribed record of fact-finding proceedings must be made, 
unless you as a respondent and NASA agree to waive it in advance. If you 
want a copy of the transcribed record, you may purchase it.



Sec. 1265.845  What does the debarring official consider in deciding whether to debar me?

    (a) The debarring official may debar you for any of the causes in 
Sec. 1265.800. However, the official need not debar you even if a cause 
for debarment exists. The official may consider the seriousness of your 
acts or omissions and the mitigating or aggravating factors set forth at 
Sec. 1265.860.
    (b) The debarring official bases the decision on all information 
contained in the official record. The record includes--
    (1) All information in support of the debarring official's proposed 
debarment;
    (2) Any further information and argument presented in support of, or 
in opposition to, the proposed debarment; and
    (3) Any transcribed record of fact-finding proceedings.
    (c) The debarring official may refer disputed material facts to 
another official for findings of fact. The debarring official may reject 
any resultant findings, in whole or in part, only after specifically 
determining them to be arbitrary, capricious, or clearly erroneous.



Sec. 1265.850  What is the standard of proof in a debarment action?

    (a) In any debarment action, we must establish the cause for 
debarment by a preponderance of the evidence.
    (b) If the proposed debarment is based upon a conviction or civil 
judgment, the standard of proof is met.



Sec. 1265.855  Who has the burden of proof in a debarment action?

    (a) We have the burden to prove that a cause for debarment exists.
    (b) Once a cause for debarment is established, you as a respondent 
have the burden of demonstrating to the satisfaction of the debarring 
official that you are presently responsible and that debarment is not 
necessary.



Sec. 1265.860  What factors may influence the debarring official's decision?

    This section lists the mitigating and aggravating factors that the 
debarring

[[Page 412]]

official may consider in determining whether to debar you and the length 
of your debarment period. The debarring official may consider other 
factors if appropriate in light of the circumstances of a particular 
case. The existence or nonexistence of any factor, such as one of those 
set forth in this section, is not necessarily determinative of your 
present responsibility. In making a debarment decision, the debarring 
official may consider the following factors:
    (a) The actual or potential harm or impact that results or may 
result from the wrongdoing.
    (b) The frequency of incidents and/or duration of the wrongdoing.
    (c) Whether there is a pattern or prior history of wrongdoing. For 
example, if you have been found by another Federal agency or a State 
agency to have engaged in wrongdoing similar to that found in the 
debarment action, the existence of this fact may be used by the 
debarring official in determining that you have a pattern or prior 
history of wrongdoing.
    (d) Whether you are or have been excluded or disqualified by an 
agency of the Federal Government or have not been allowed to participate 
in State or local contracts or assistance agreements on a basis of 
conduct similar to one or more of the causes for debarment specified in 
this part.
    (e) Whether you have entered into an administrative agreement with a 
Federal agency or a State or local government that is not governmentwide 
but is based on conduct similar to one or more of the causes for 
debarment specified in this part.
    (f) Whether and to what extent you planned, initiated, or carried 
out the wrongdoing.
    (g) Whether you have accepted responsibility for the wrongdoing and 
recognize the seriousness of the misconduct that led to the cause for 
debarment.
    (h) Whether you have paid or agreed to pay all criminal, civil and 
administrative liabilities for the improper activity, including any 
investigative or administrative costs incurred by the government, and 
have made or agreed to make full restitution.
    (i) Whether you have cooperated fully with the government agencies 
during the investigation and any court or administrative action. In 
determining the extent of cooperation, the debarring official may 
consider when the cooperation began and whether you disclosed all 
pertinent information known to you.
    (j) Whether the wrongdoing was pervasive within your organization.
    (k) The kind of positions held by the individuals involved in the 
wrongdoing.
    (l) Whether your organization took appropriate corrective action or 
remedial measures, such as establishing ethics training and implementing 
programs to prevent recurrence.
    (m) Whether your principals tolerated the offense.
    (n) Whether you brought the activity cited as a basis for the 
debarment to the attention of the appropriate government agency in a 
timely manner.
    (o) Whether you have fully investigated the circumstances 
surrounding the cause for debarment and, if so, made the result of the 
investigation available to the debarring official.
    (p) Whether you had effective standards of conduct and internal 
control systems in place at the time the questioned conduct occurred.
    (q) Whether you have taken appropriate disciplinary action against 
the individuals responsible for the activity which constitutes the cause 
for debarment.
    (r) Whether you have had adequate time to eliminate the 
circumstances within your organization that led to the cause for the 
debarment.
    (s) Other factors that are appropriate to the circumstances of a 
particular case.



Sec. 1265.865  How long may my debarment last?

    (a) If the debarring official decides to debar you, your period of 
debarment will be based on the seriousness of the cause(s) upon which 
your debarment is based. Generally, debarment should not exceed three 
years. However, if circumstances warrant, the debarring official may 
impose a longer period of debarment.
    (b) In determining the period of debarment, the debarring official 
may

[[Page 413]]

consider the factors in Sec. 1265.860. If a suspension has preceded 
your debarment, the debarring official must consider the time you were 
suspended.
    (c) If the debarment is for a violation of the provisions of the 
Drug-Free Workplace Act of 1988, your period of debarment may not exceed 
five years.



Sec. 1265.870  When do I know if the debarring official debars me?

    (a) The debarring official must make a written decision whether to 
debar within 45 days of closing the official record. The official record 
closes upon the debarring official's receipt of final submissions, 
information and findings of fact, if any. The debarring official may 
extend that period for good cause.
    (b) The debarring official sends you written notice, pursuant to 
Sec. 1265.615 that the official decided, either--
    (1) Not to debar you; or
    (2) To debar you. In this event, the notice:
    (i) Refers to the Notice of Proposed Debarment;
    (ii) Specifies the reasons for your debarment;
    (iii) States the period of your debarment, including the effective 
dates; and
    (iv) Advises you that your debarment is effective for covered 
transactions and contracts that are subject to the Federal Acquisition 
Regulation (48 CFR chapter 1), throughout the executive branch of the 
Federal Government unless an agency head or an authorized designee 
grants an exception.



Sec. 1265.875  May I ask the debarring official to reconsider a decision to debar me?

    Yes, as a debarred person you may ask the debarring official to 
reconsider the debarment decision or to reduce the time period or scope 
of the debarment. However, you must put your request in writing and 
support it with documentation.



Sec. 1265.880  What factors may influence the debarring official during reconsideration?

    The debarring official may reduce or terminate your debarment based 
on--
    (a) Newly discovered material evidence;
    (b) A reversal of the conviction or civil judgment upon which your 
debarment was based;
    (c) A bona fide change in ownership or management;
    (d) Elimination of other causes for which the debarment was imposed; 
or
    (e) Other reasons the debarring official finds appropriate.



Sec. 1265.885  May the debarring official extend a debarment?

    (a) Yes, the debarring official may extend a debarment for an 
additional period, if that official determines that an extension is 
necessary to protect the public interest.
    (b) However, the debarring official may not extend a debarment 
solely on the basis of the facts and circumstances upon which the 
initial debarment action was based.
    (c) If the debarring official decides that a debarment for an 
additional period is necessary, the debarring official must follow the 
applicable procedures in this subpart, and subpart F of this part, to 
extend the debarment.



                         Subpart I--Definitions



Sec. 1265.900  Adequate evidence.

    Adequate evidence means information sufficient to support the 
reasonable belief that a particular act or omission has occurred.



Sec. 1265.905  Affiliate.

    Persons are affiliates of each other if, directly or indirectly, 
either one controls or has the power to control the other or a third 
person controls or has the power to control both. The ways we use to 
determine control include, but are not limited to--
    (a) Interlocking management or ownership;
    (b) Identity of interests among family members;
    (c) Shared facilities and equipment;
    (d) Common use of employees; or
    (e) A business entity which has been organized following the 
exclusion of a person which has the same or similar management, 
ownership, or principal employees as the excluded person.

[[Page 414]]



Sec. 1265.910  Agency.

    Agency means any United States executive department, military 
department, defense agency, or any other agency of the executive branch. 
Other agencies of the Federal government are not considered ``agencies'' 
for the purposes of this part unless they issue regulations adopting the 
governmentwide Debarment and Suspension system under Executive orders 
12549 and 12689.



Sec. 1265.915  Agent or representative.

    Agent or representative means any person who acts on behalf of, or 
who is authorized to commit, a participant in a covered transaction.



Sec. 1265.920  Civil judgment.

    Civil judgment means the disposition of a civil action by any court 
of competent jurisdiction, whether by verdict, decision, settlement, 
stipulation, other disposition which creates a civil liability for the 
complained of wrongful acts, or a final determination of liability under 
the Program Fraud Civil Remedies Act of 1988 (31 U.S.C. 3801-3812).



Sec. 1265.925  Conviction.

    Conviction means--
    (a) A judgment or any other determination of guilt of a criminal 
offense by any court of competent jurisdiction, whether entered upon a 
verdict or plea, including a plea of nolo contendere; or
    (b) Any other resolution that is the functional equivalent of a 
judgment, including probation before judgment and deferred prosecution. 
A disposition without the participation of the court is the functional 
equivalent of a judgment only if it includes an admission of guilt.



Sec. 1265.930  Debarment.

    Debarment means an action taken by a debarring official under 
subpart H of this part to exclude a person from participating in covered 
transactions and transactions covered under the Federal Acquisition 
Regulation (48 CFR chapter 1). A person so excluded is debarred.



Sec. 1265.935  Debarring official.

    (a) Debarring official means an agency official who is authorized to 
impose debarment. A debarring official is either--
    (1) The agency head; or
    (2) An official designated by the agency head.
    (b) [Reserved]



Sec. 1265.940  Disqualified.

    Disqualified means that a person is prohibited from participating in 
specified Federal procurement or nonprocurement transactions as required 
under a statute, Executive order (other than Executive Orders 12549 and 
12689) or other authority. Examples of disqualifications include persons 
prohibited under--
    (a) The Davis-Bacon Act (40 U.S.C. 276(a));
    (b) The equal employment opportunity acts and Executive orders; or
    (c) The Clean Air Act (42 U.S.C. 7606), Clean Water Act (33 U.S.C. 
1368) and Executive Order 11738 (3 CFR, 1973 Comp., p. 799).



Sec. 1265.945  Excluded or exclusion.

    Excluded or exclusion means--
    (a) That a person or commodity is prohibited from being a 
participant in covered transactions, whether the person has been 
suspended; debarred; proposed for debarment under 48 CFR part 9, subpart 
9.4; voluntarily excluded; or
    (b) The act of excluding a person.



Sec. 1265.950  Excluded Parties List System

    Excluded Parties List System (EPLS) means the list maintained and 
disseminated by the General Services Administration (GSA) containing the 
names and other information about persons who are ineligible. The EPLS 
system includes the printed version entitled, ``List of Parties Excluded 
or Disqualified from Federal Procurement and Nonprocurement Programs,'' 
so long as published.



Sec. 1265.955  Indictment.

    Indictment means an indictment for a criminal offense. A 
presentment, information, or other filing by a competent authority 
charging a criminal offense shall be given the same effect as an 
indictment.

[[Page 415]]



Sec. 1265.960  Ineligible or ineligibility.

    Ineligible or ineligibility means that a person or commodity is 
prohibited from covered transactions because of an exclusion or 
disqualification.



Sec. 1265.965  Legal proceedings.

    Legal proceedings means any criminal proceeding or any civil 
judicial proceeding, including a proceeding under the Program Fraud 
Civil Remedies Act (31 U.S.C. 3801-3812), to which the Federal 
Government or a State or local government or quasi-governmental 
authority is a party. The term also includes appeals from those 
proceedings.



Sec. 1265.970  Nonprocurement transaction.

    (a) Nonprocurement transaction means any transaction, regardless of 
type (except procurement contracts), including, but not limited to the 
following:
    (1) Grants.
    (2) Cooperative agreements.
    (3) Scholarships.
    (4) Fellowships.
    (5) Contracts of assistance.
    (6) Loans.
    (7) Loan guarantees.
    (8) Subsidies.
    (9) Insurances.
    (10) Payments for specified uses.
    (11) Donation agreements.
    (b) A nonprocurement transaction at any tier does not require the 
transfer of Federal funds.



Sec. 1265.975  Notice.

    Notice means a written communication served in person, sent by 
certified mail or its equivalent, or sent electronically by e-mail or 
facsimile. (See Sec. 1265. 615.)



Sec. 1265.980  Participant.

    Participant means any person who submits a proposal for or who 
enters into a covered transaction, including an agent or representative 
of a participant.



Sec. 1265.985  Person.

    Person means any individual, corporation, partnership, association, 
unit of government, or legal entity, however organized.



Sec. 1265.990  Preponderance of the evidence.

    Preponderance of the evidence means proof by information that, 
compared with information opposing it, leads to the conclusion that the 
fact at issue is more probably true than not.



Sec. 1265.995  Principal.

    Principal means--
    (a) An officer, director, owner, partner, principal investigator, or 
other person within a participant with management or supervisory 
responsibilities related to a covered transaction; or
    (b) A consultant or other person, whether or not employed by the 
participant or paid with Federal funds, who--
    (1) Is in a position to handle Federal funds;
    (2) Is in a position to influence or control the use of those funds; 
or,
    (3) Occupies a technical or professional position capable of 
substantially influencing the development or outcome of an activity 
required to perform the covered transaction.



Sec. 1265.1000  Respondent.

    Respondent means a person against whom an agency has initiated a 
debarment or suspension action.



Sec. 1265.1005  State.

    (a) State means--
    (1) Any of the states of the United States;
    (2) The District of Columbia;
    (3) The Commonwealth of Puerto Rico;
    (4) Any territory or possession of the United States; or
    (5) Any agency or instrumentality of a state.
    (b) For purposes of this part, State does not include institutions 
of higher education, hospitals, or units of local government.



Sec. 1265.1010  Suspending official.

    (a) Suspending official means an agency official who is authorized 
to impose suspension. The suspending official is either:
    (1) The agency head; or
    (2) An official designated by the agency head.
    (b) [Reserved]

[[Page 416]]



Sec. 1265.1015  Suspension.

    Suspension is an action taken by a suspending official under subpart 
G of this part that immediately prohibits a person from participating in 
covered transactions and transactions covered under the Federal 
Acquisition Regulation (48 CFR chapter 1) for a temporary period, 
pending completion of an agency investigation and any judicial or 
administrative proceedings that may ensue. A person so excluded is 
suspended.



Sec. 1265.1020  Voluntary exclusion or voluntarily excluded.

    (a) Voluntary exclusion means a person's agreement to be excluded 
under the terms of a settlement between the person and one or more 
agencies. Voluntary exclusion must have governmentwide effect.
    (b) Voluntarily excluded means the status of a person who has agreed 
to a voluntary exclusion.

Subpart J [Reserved]

               Appendix to Part 1265--Covered Transactions
[GRAPHIC] [TIFF OMITTED] TR26NO03.000


[[Page 417]]





PART 1266--CROSS-WAIVER OF LIABILITY--Table of Contents




Sec.
1266.100 Purpose.
1266.101 Scope.
1266.102 Cross-waiver of liability for Space Station Freedom activities.
1266.103 Cross-waiver of liability during Shuttle operations.
1266.104 Cross-waiver of liability for NASA expendable launch vehicle 
          (ELV) program launches.

    Authority: 42 U.S.C. 2473 (c)(1) and (c)(5).

    Source: 56 FR 48430, Sept. 25, 1991, unless otherwise noted.



Sec. 1266.100  Purpose.

    The purpose of this regulation is to ensure that consistent cross-
waivers of liability are included in NASA agreements for Space Station 
Freedom activities, Shuttle launch services, and NASA Expendable Launch 
Vehicle (ELV) program launches.



Sec. 1266.101  Scope.

    These provisions at Sec. 1266.102, contained in Article 16 of the 
``Intergovernmental Agreement among the United States, the Governments 
of Member States of the European Space Agency, the Government of Japan, 
and the Government of Canada on Cooperation in the Detailed Design, 
Development, Operation and Utilization of the Permanently Manned Civil 
Space Station,'' form the regulatory basis for cross-waivers to be 
incorporated in NASA agreements implementing the Intergovernmental 
Agreement and the memoranda of understanding between the U.S. and its 
respective international partners on Space Station Freedom. The 
provisions at Sec. 1266.103 of this part provide the regulatory basis 
for cross-waiver clauses to be incorporated in agreements for Shuttle 
launch services that do not involve activities in connection with Space 
Station Freedom. The provisions at Sec. 1266.104 of this part provide 
the regulatory basis for cross-waiver clauses to be incorporated in 
agreements for NASA ELV program launches that do not involve activities 
in connection with Space Station Freedom.



Sec. 1266.102  Cross-waiver of liability for Space Station Freedom activities.

    (a) The objective of this section is to establish a cross-waiver of 
liability (``cross-waiver'') by the Partner States and related entities 
in the interest of encouraging participation in exploration, 
exploitation, and use of outer space through the Space Station. This 
cross-waiver of liability shall be broadly construed to achieve this 
objective.
    (b) For the purposes of this section:
    (1)(i) A Partner State is each contracting Party for which the 
``Agreement among the Government of the United States of America, 
Governments of Member States of the European Space Agency, the 
Government of Japan, and the Government of Canada on Cooperation in the 
Detailed Design, Development, Operation, and Utilization of the 
Permanently Manned Civil Space Station'' (the ``Intergovernmental 
Agreement'') has entered into force, in accordance with Article 25 of 
the Intergovernmental Agreement.
    (ii) A Partner State includes its Cooperating Agency. The National 
Aeronautics and Space Administration (NASA) for the United States, the 
European Space Agency (ESA) for the European Governments, the Canadian 
Space Agency (CSA) for the Government of Canada, and the Science and 
Technology Agency of Japan (STA) are the Cooperating Agencies 
responsible for implementing Space Station cooperation. A Partner State 
also includes any entity specified in the Memorandum of Understanding 
(MOU) between NASA and the Government of Japan to assist the Government 
of Japan's Cooperating Agency in the implementation of that MOU.
    (2) The term related entity means:
    (i) A contractor or subcontractor of a Partner State at any tier;
    (ii) A user or customer of a Partner State at any tier; or
    (iii) A contractor or subcontractor of a user or customer of a 
Partner State at any tier. ``Contractors'' and ``subcontractors'' 
include suppliers of any kind.
    (3) The term damage means:
    (i) Bodily injury to, or other impairment of health of, or death of, 
any person;

[[Page 418]]

    (ii) Damage to, loss of, or loss of use of any property;
    (iii) Loss of revenue or profits; or
    (iv) Other direct, indirect, or consequential damage.
    (4) The term launch vehicle means an object (or any part thereof) 
intended for launch, launched from Earth, or returning to Earth which 
carries payloads or persons, or both.
    (5) The term payload means all property to be flown or used on or in 
a launch vehicle or the Space Station.
    (6) The term Protected Space Operations means all launch vehicle 
activities, Space Station Freedom activities, and payload activities on 
Earth, in outer space, or in transit between Earth and outer space done 
in implementation of this Agreement, the MOU's, and implementing 
arrangements. It includes, but is not limited to:
    (i) Research, design, development, test, manufacture, assembly, 
integration, operation, or use of launch or transfer vehicles (for 
example, the Orbital Maneuvering Vehicle), the Space Station, or a 
payload, as well as related support equipment and facilities and 
services;
    (ii) All activities related to ground support, test, training, 
simulation, or guidance and control equipment, and related facilities or 
services. Protected Space Operations also includes all activities 
related to evolution of the Space Station, as provided for in Article 14 
of the Intergovernmental Agreement. Protected Space Operations excludes 
activities on Earth which are conducted on return from the Space Station 
to develop further a payload's product or process for use other than for 
Space Station-related activities in implementation of this Agreement.
    (c)(1) Each Partner State agrees to a cross-waiver of liability 
pursuant to which each Partner State waives all claims against any of 
the entities or persons listed in paragraphs (c)(1)(i) through 
(c)(1)(iii) of this section based on damage arising out of Protected 
Space Operations. This cross-waiver shall apply only if the person, 
entity, or property causing the damage is involved in Protected Space 
Operations and the person, entity, or property is damaged by virtue of 
its involvement in Protected Space Operations. The cross-waiver shall 
apply to any claims for damage, whatever the legal basis for such 
claims, including but not limited to delict and tort (including 
negligence of every degree and kind) and contract, against:
    (i) Another Partner State;
    (ii) A related entity of another Partner State;
    (iii) The employees of any of the entities identified in paragraphs 
(c)(1)(i) and (c)(1)(ii) of this section.
    (2) In addition, each Partner State shall extend the cross-waiver of 
liability as set forth in paragraph (c)(1) of this section to its own 
related entities by requiring them, by contract or otherwise, to agree 
to waive all claims against the entities or persons identified in 
paragraphs (c)(1)(i) through (c)(1)(iii) of this section.
    (3) For avoidance of doubt, this cross-waiver of liability includes 
a cross-waiver of liability arising from the Liability Convention where 
the person, entity, or property causing the damage is involved in 
Protected Space Operations, and the person, entity, or property damaged 
is damaged by virtue of its involvement in Protected Space Operations.
    (4) Notwithstanding the other provisions of this section, this 
cross-waiver of liability shall not be applicable to:
    (i) Claims between a Partner State and its own related entity or 
between its own related entities;
    (ii) Claims made by a natural person, his/her estate, survivors, or 
subrogees for injury or death of such natural person;
    (iii) Claims for damage caused by willful misconduct;
    (iv) Intellectual property claims.
    (5) Nothing in this section shall be construed to create the basis 
for a claim or suit where none would otherwise exist.



Sec. 1266.103  Cross-waiver of liability during Shuttle operations.

    (a) The purpose of this section is to establish a cross-waiver of 
liability between the parties to Shuttle launch services agreements and 
to other NASA agreements that involve Shuttle

[[Page 419]]

flights, and the parties' related entities, in the interest of 
encouraging participation in space exploration, exploitation, and 
investment. The cross-waiver of liability shall be broadly construed to 
achieve this objective.
    (b) As used in this cross-waiver, the term:
    (1) Party means a person or entity that signs an agreement involving 
a Shuttle flight;
    (2) Related Entity means:
    (i) A contractor or subcontractor of a Party at any tier;
    (ii) A user or customer of a Party at any tier; or
    (iii) A contractor or subcontractor of a user or customer of a Party 
at any tier. Contractors and Subcontractors include suppliers of any 
kind;
    (3) Damage means:
    (i) Bodily injury to, or other impairment of health of, or death of, 
any person;
    (ii) Damage to, loss of, or loss of use of any property;
    (iii) Loss of revenue or profits; or
    (iv) Other direct, indirect, or consequential damage;
    (4) Payload means any property to be flown or used on or in the 
Shuttle; and
    (5) Protected Space Operations means all Space Shuttle and payload 
activities on Earth, in outer space, or in transit between Earth and 
outer space done in implementation of an agreement for Shuttle launch 
services. Protected Space Operations begin at the signature of the 
agreement and ends when all activities done in implementation of the 
agreement are completed. It includes, but is not limited to:
    (i) Research, design, development, test, manufacture, assembly, 
integration, operation, or use of: the Space Shuttle, transfer vehicles, 
payloads, related support equipment, and facilities and services;
    (ii) All activities related to ground support, test, training, 
simulation, or guidance and control equipment and related facilities or 
services. Protected Space Operations excludes activities on Earth which 
are conducted on return from space to develop further a payload's 
product or process for use other than for Shuttle-related activities 
necessary to complete implementation of the agreement.
    (c)(1) Each Party agrees to a cross-waiver of liability pursuant to 
which each Party waives all claims against any of the entities or 
persons listed in paragraphs (c)(1)(i) through (c)(1)(iv) of this 
section based on damage arising out of Protected Space Operations. This 
cross-waiver shall apply only if the person, entity, or property causing 
the damage is involved in Protected Space Operations and the person, 
entity, or property damaged is damaged by virtue of its involvement in 
Protected Space Operations. The cross-waiver shall apply to any claims 
for damage, whatever the legal basis for such claims, including but not 
limited to delict and tort (including negligence of every degree and 
kind) and contract, against:
    (i) Another Party;
    (ii) Any Party who has signed a NASA agreement that includes a 
Shuttle flight;
    (iii) A related entity of any party in paragraph (c)(1)(ii) of this 
section;
    (iv) The employees of any of the entities identified in (c)(1)(i) 
through (c)(1)(iii) of this section.
    (2) In addition, each Party shall extend the cross-waiver of 
liability as set forth in paragraph (c)(1) of this section to its own 
related entities by requiring them, by contract or otherwise, to agree 
to waive all claims against the entities or persons identified in 
paragraphs (c)(1)(i) through (c)(1)(iv) of this section.
    (3) For avoidance of doubt, this cross-waiver includes a cross-
waiver of liability arising from the Convention on International 
Liability for Damage Caused by Space Objects, (Mar. 29, 1972, 24 United 
States Treaties and other International Agreements (U.S.T.) 2389, 
Treaties and Other International Acts Series (T.I.A.S.) No. 7762) where 
the person, entity, or property causing the damage is involved in 
Protected Space Operations and the person, entity, or property damaged 
is damaged by virtue of its involvement in Protected Space Operations.
    (4) Notwithstanding the other provisions of this section, this 
cross-waiver of liability shall not be applicable to:
    (i) Claims between a Party and its own related entity or between its 
own related entities;

[[Page 420]]

    (ii) Claims made by a natural person, his/her estate, survivors, or 
subrogees for injury or death of such natural person;
    (iii) Claims for damage caused by willful misconduct;
    (iv) Intellectual property claims;
    (v) Contract claims between the Parties based on the express 
contractual provisions of the agreement;
    (vi) Claims for damage based on a failure of the Parties or their 
related entities to flow down the cross-waiver.
    (5) Nothing in this section shall be construed to create the basis 
for a claim or suit where none would otherwise exist.



Sec. 1266.104  Cross-waiver of liability for NASA expendable launch vehicle (ELV) program launches.

    (a) The purpose of this section is to establish a cross-waiver of 
liability between the parties to agreements for NASA ELV program 
launches, and the parties' related entities, in the interest of 
encouraging space exploration and investment. The cross-waiver of 
liability shall be broadly construed to achieve this objective.
    (b) As used in this section, the term:
    (1) Party means a person or entity that signs an agreement involving 
an ELV launch;
    (2) Related Entity means:
    (i) A contractor or subcontractor of a Party at any tier;
    (ii) A user or customer of a Party at any tier; or
    (iii) a contractor or subcontractor of a user or customer of a Party 
at any tier. Contractors and ``Subcontractors'' include suppliers of any 
kind.
    (3) Damage means:
    (i) Bodily injury to, or other impairment to health of, or death of, 
any person;
    (ii) Damage to, loss of, or loss of use of any property;
    (iii) Loss of revenue or profits; or
    (iv) Other direct, indirect, or consequential damage;
    (4) Payload means any property to be flown or used on or in an ELV; 
and
    (5) Protected Space Operations means all expendable launch vehicle 
and payload activities on Earth, in outer space, or in transit between 
Earth and outer space in implementation of the agreement. Protected 
Space Operations begins at the signature of the agreement and ends when 
all activities done in implementation of the agreement are completed. It 
includes, but is not limited to:
    (i) Research, design, development, test, manufacture, assembly, 
integration, operation, or use of: expendable launch vehicles (ELV), 
transfer vehicles, payloads, related support equipment, and facilities 
and services;
    (ii) All activities related to ground support, test, training, 
simulation, or guidance and control equipment, and related facilities or 
services. Protected Space Operations excludes activities on Earth which 
are conducted on return from space to develop further a payload's 
product or process for use other than for ELV-related activities 
necessary to complete implementation of the agreement.
    (c)(1) Each Party agrees to a cross-waiver of liability pursuant to 
which each Party waivers all claims against any of the entities or 
persons listed in paragraphs (c)(1)(i) through (c)(1)(iii) of this 
section based on damage arising out of Protected Space Operations. This 
cross-waiver shall apply only if the person, entity, or property causing 
the damage is involved in Protected Space Operations and the person, 
entity, or property damaged is damaged by virtue of its involvement in 
Protected Space Operations. The cross-waiver shall apply to any claims 
for damage, whatever the legal basis for such claims, including but not 
limited to delict and tort (including negligence of every degree and 
kind) and contract, against:
    (i) Another Party;
    (ii) A related entity of another Party;
    (iii) The employees of any of the entities identified in paragraphs 
(c)(1)(i) and (ii) of this section.
    (2) In addition, each Party shall extend the cross-waiver of 
liability as set forth in paragraph (c)(1) of this section to its own 
related entities by requiring them, by contract or otherwise, to agree 
to waive all claims against the entities or persons identified in 
paragraphs (c)(1)(i) through (c)(1)(iii) of this section.
    (3) For avoidance of doubt, this cross-waiver of liability includes 
a cross-

[[Page 421]]

waiver of liability arising from the Convention on International 
Liability for Damage Caused by Space Objects (Mar. 29, 1972, 24 United 
States Treaties and other International Agreements (U.S.T.) 2389, 
Treaties and other International Acts Series (T.I.A.S.) No. 7762) where 
the person, entity, or property causing the damage is involved in 
Protected Space Operations and the person, entity, or property damaged 
is damaged by virtue of its involvement in Protected Space Operations.
    (4) Notwithstanding the other provisions of this section, this 
cross-waiver shall not be applicable to:
    (i) Claims between a Party and its own related entity or between its 
own related entities;
    (ii) Claims made by a natural person, his/her estate, survivors, or 
subrogees for injury or death of such natural person;
    (iii) Claims for damage caused by willful misconduct;
    (iv) Intellectual property claims;
    (v) Contract claims between the Parties based on the express 
contractual provisions of the agreement;
    (vi) Claims for damage based on a failure of the Parties or their 
related entities to flow-down the cross-waiver.
    (5) Nothing in this section shall be construed to create the basis 
for a claim or suit where none would otherwise exist.
    (6) This cross-waiver shall not be applicable when the Commercial 
Space Launch Act cross-waiver (49 U.S.C. app. 2615) is applicable.



PART 1267--GOVERNMENTWIDE REQUIREMENTS FORDRUG-FREE WORKPLACE (FINANCIAL ASSISTANCE)--Table of Contents




                     Subpart A--Purpose and Coverage

Sec.
1267.100 What does this part do?
1267.105 Does this part apply to me?
1267.110 Are any of my Federal assistance awards exempt from this part?
1267.115 Does this part affect the Federal contracts that I receive?

      Subpart B--Requirements for Recipients Other Than Individuals

1267.200 What must I do to comply with this part?
1267.205 What must I include in my drug-free workplace statement?
1267.210 To whom must I distribute my drug-free workplace statement?
1267.215 What must I include in my drug-free awareness program?
1267.220 By when must I publish my drug-free workplace statement and 
          establish my drug-free awareness program?
1267.225 What actions must I take concerning employees who are convicted 
          of drug violations in the workplace?
1267.230 How and when must I identify workplaces?

       Subpart C--Requirements for Recipients Who Are Individuals

1267.300 What must I do to comply with this part if I am an individual 
          recipient?
1267.301 [Reserved]

         Subpart D--Responsibilities of NASA Awarding Officials

1267.400 What are my responsibilities as a NASA awarding official?

           Subpart E--Violations of This Part and Consequences

1267.500 How are violations of this part determined for recipients other 
          than individuals?
1267.505 How are violations of this part determined for recipients who 
          are individuals?
1267.510 What actions will the Federal Government take against a 
          recipient determined to have violated this part?
1267.515 Are there any exceptions to those actions?

                         Subpart F--Definitions

1267.605 Award.
1267.610 Controlled substance.
1267.615 Conviction.
1267.620 Cooperative agreement.
1267.625 Criminal drug statute.
1267.630 Debarment.
1267.635 Drug-free workplace.
1267.640 Employee.
1267.645 Federal agency or agency.
1267.650 Grant.
1267.655 Individual.
1267.660 Recipient.
1267.665 State.
1267.670 Suspension.

    Authority: 41 U.S.C. 701 et seq.; 42 U.S.C. 2473c.

    Source:  68 FR 66557, 66575, Nov. 26, 2003, unless otherwise noted.

[[Page 422]]



                     Subpart A--Purpose and Coverage



Sec. 1267.100  What does this part do?

    This part carries out the portion of the Drug-Free Workplace Act of 
1988 (41 U.S.C. 701 et seq., as amended) that applies to grants. It also 
applies the provisions of the Act to cooperative agreements and other 
financial assistance awards, as a matter of Federal Government policy.



Sec. 1267.105  Does this part apply to me?

    (a) Portions of this part apply to you if you are either--
    (1) A recipient of an assistance award from NASA; or
    (2) A(n) NASA awarding official. (See definitions of award and 
recipient in Sec. Sec. 1267.605 and 1267.660, respectively.)
    (b) The following table shows the subparts that apply to you:

------------------------------------------------------------------------
            If you are . . .                    see subparts . . .
------------------------------------------------------------------------
(1) A recipient who is not an            A, B and E.
 individual.
(2) A recipient who is an individual...  A, C and E.
(3) A(n) NASA awarding official........  A, D and E.
------------------------------------------------------------------------



Sec. 1267.110  Are any of my Federal assistance awards exempt from this part?

    This part does not apply to any award that the Assistant 
Administrator for Procurement determines that the application of this 
part would be inconsistent with the international obligations of the 
United States or the laws or regulations of a foreign government.



Sec. 1267.115  Does this part affect the Federal contracts that I receive?

    It will affect future contract awards indirectly if you are debarred 
or suspended for a violation of the requirements of this part, as 
described in Sec. 1267. 510(c). However, this part does not apply 
directly to procurement contracts. The portion of the Drug-Free 
Workplace Act of 1988 that applies to Federal procurement contracts is 
carried out through the Federal Acquisition Regulation in chapter 1 of 
Title 48 of the Code of Federal Regulations (the drug-free workplace 
coverage currently is in 48 CFR part 23, subpart 23.5).



      Subpart B--Requirements for Recipients Other Than Individuals



Sec. 1267.200  What must I do to comply with this part?

    There are two general requirements if you are a recipient other than 
an individual.
    (a) First, you must make a good faith effort, on a continuing basis, 
to maintain a drug-free workplace. You must agree to do so as a 
condition for receiving any award covered by this part. The specific 
measures that you must take in this regard are described in more detail 
in subsequent sections of this subpart. Briefly, those measures are to--
    (1) Publish a drug-free workplace statement and establish a drug-
free awareness program for your employees (see Sec. Sec. 1267.205 
through 1267.220); and
    (2) Take actions concerning employees who are convicted of violating 
drug statutes in the workplace (see Sec. 1267.225).
    (b) Second, you must identify all known workplaces under your 
Federal awards (see Sec. 1267.230).



Sec. 1267.205  What must I include in my drug-free workplace statement?

    You must publish a statement that--
    (a) Tells your employees that the unlawful manufacture, 
distribution, dispensing, possession, or use of a controlled substance 
is prohibited in your workplace;
    (b) Specifies the actions that you will take against employees for 
violating that prohibition; and
    (c) Lets each employee know that, as a condition of employment under 
any award, he or she:
    (1) Will abide by the terms of the statement; and
    (2) Must notify you in writing if he or she is convicted for a 
violation of a criminal drug statute occurring in the workplace and must 
do so no more

[[Page 423]]

than five calendar days after the conviction.



Sec. 1267.210  To whom must I distribute my drug-free workplace statement?

    You must require that a copy of the statement described in Sec. 
1267.205 be given to each employee who will be engaged in the 
performance of any Federal award.



Sec. 1267.215  What must I include in my drug-free awareness program?

    You must establish an ongoing drug-free awareness program to inform 
employees about--
    (a) The dangers of drug abuse in the workplace;
    (b) Your policy of maintaining a drug-free workplace;
    (c) Any available drug counseling, rehabilitation, and employee 
assistance programs; and
    (d) The penalties that you may impose upon them for drug abuse 
violations occurring in the workplace.



Sec. 1267.220  By when must I publish my drug-free workplace statement and establish my drug-free awareness program?

    If you are a new recipient that does not already have a policy 
statement as described in Sec. 1267.205 and an ongoing awareness 
program as described in Sec. 1267.215, you must publish the statement 
and establish the program by the time given in the following table:

------------------------------------------------------------------------
                If . . .                          then you . . .
------------------------------------------------------------------------
(a) The performance period of the award  must have the policy statement
 is less than 30 days.                    and program in place as soon
                                          as possible, but before the
                                          date on which performance is
                                          expected to be completed.
(b) The performance period of the award  must have the policy statement
 is 30 days or more.                      and program in place within 30
                                          days after award.
(c) You believe there are extraordinary  may ask the NASA awarding
 circumstances that will require more     official to give you more time
 than 30 days for you to publish the      to do so. The amount of
 policy statement and establish the       additional time, if any, to be
 awareness program.                       given is at the discretion of
                                          the awarding official.
------------------------------------------------------------------------



Sec. 1267.225  What actions must I take concerning employees who are convicted of drug violations in the workplace?

    There are two actions you must take if an employee is convicted of a 
drug violation in the workplace:
    (a) First, you must notify Federal agencies if an employee who is 
engaged in the performance of an award informs you about a conviction, 
as required by Sec. 1267.205(c)(2), or you otherwise learn of the 
conviction. Your notification to the Federal agencies must--
    (1) Be in writing;
    (2) Include the employee's position title;
    (3) Include the identification number(s) of each affected award;
    (4) Be sent within ten calendar days after you learn of the 
conviction; and
    (5) Be sent to every Federal agency on whose award the convicted 
employee was working. It must be sent to every awarding official or his 
or her official designee, unless the Federal agency has specified a 
central point for the receipt of the notices.
    (b) Second, within 30 calendar days of learning about an employee's 
conviction, you must either--
    (1) Take appropriate personnel action against the employee, up to 
and including termination, consistent with the requirements of the 
Rehabilitation Act of 1973 (29 U.S.C. 794), as amended; or
    (2) Require the employee to participate satisfactorily in a drug 
abuse assistance or rehabilitation program approved for these purposes 
by a Federal, State or local health, law enforcement, or other 
appropriate agency.



Sec. 1267.230  How and when must I identify workplaces?

    (a) You must identify all known workplaces under each NASA award. A 
failure to do so is a violation of your drug-free workplace 
requirements. You may identify the workplaces--
    (1) To the NASA official that is making the award, either at the 
time of application or upon award; or
    (2) In documents that you keep on file in your offices during the 
performance of the award, in which case you

[[Page 424]]

must make the information available for inspection upon request by NASA 
officials or their designated representatives.
    (b) Your workplace identification for an award must include the 
actual address of buildings (or parts of buildings) or other sites where 
work under the award takes place. Categorical descriptions may be used 
(e.g., all vehicles of a mass transit authority or State highway 
department while in operation, State employees in each local 
unemployment office, performers in concert halls or radio studios).
    (c) If you identified workplaces to the NASA awarding official at 
the time of application or award, as described in paragraph (a)(1) of 
this section, and any workplace that you identified changes during the 
performance of the award, you must inform the NASA awarding official.



       Subpart C--Requirements for Recipients Who Are Individuals



Sec. 1267.300  What must I do to comply with this part if I am an individual recipient?

    As a condition of receiving a(n) NASA award, if you are an 
individual recipient, you must agree that--
    (a) You will not engage in the unlawful manufacture, distribution, 
dispensing, possession, or use of a controlled substance in conducting 
any activity related to the award; and
    (b) If you are convicted of a criminal drug offense resulting from a 
violation occurring during the conduct of any award activity, you will 
report the conviction:
    (1) In writing.
    (2) Within 10 calendar days of the conviction.
    (3) To the NASA awarding official or other designee for each award 
that you currently have, unless Sec. 1267.301 or the award document 
designates a central point for the receipt of the notices. When notice 
is made to a central point, it must include the identification number(s) 
of each affected award.



Sec. 1267.301  [Reserved]



         Subpart D--Responsibilities of NASA Awarding Officials



Sec. 1267.400   What are my responsibilities as a(n) NASA awarding official?

    As a(n) NASA awarding official, you must obtain each recipient's 
agreement, as a condition of the award, to comply with the requirements 
in--
    (a) Subpart B of this part, if the recipient is not an individual; 
or
    (b) Subpart C of this part, if the recipient is an individual.



           Subpart E--Violations of this Part and Consequences



Sec. 1267.500  How are violations of this part determined for recipients other than individuals?

    A recipient other than an individual is in violation of the 
requirements of this part if the Assistant Administrator for Procurement 
determines, in writing, that--
    (a) The recipient has violated the requirements of subpart B of this 
part; or
    (b) The number of convictions of the recipient's employees for 
violating criminal drug statutes in the workplace is large enough to 
indicate that the recipient has failed to make a good faith effort to 
provide a drug-free workplace.



Sec. 1267.505  How are violations of this part determined for recipients who are individuals?

    An individual recipient is in violation of the requirements of this 
part if the Assistant Administrator for Procurement determines, in 
writing, that--
    (a) The recipient has violated the requirements of subpart C of this 
part; or
    (b) The recipient is convicted of a criminal drug offense resulting 
from a violation occurring during the conduct of any award activity.



Sec. 1267.510  What actions will the Federal Government take against a recipient determined to have violated this part?

    If a recipient is determined to have violated this part, as 
described in

[[Page 425]]

Sec. 1267.500 or Sec. 1267.505, NASA may take one or more of the 
following actions--
    (a) Suspension of payments under the award;
    (b) Suspension or termination of the award; and
    (c) Suspension or debarment of the recipient under 14 CFR Part 1265, 
for a period not to exceed five years.



Sec. 1267.515  Are there any exceptions to those actions?

    The Assistant Administrator for Procurement may waive with respect 
to a particular award, in writing, a suspension of payments under an 
award, suspension or termination of an award, or suspension or debarment 
of a recipient if the Assistant Administrator for Procurement determines 
that such a waiver would be in the public interest. This exception 
authority cannot be delegated to any other official.



                         Subpart F--Definitions



Sec. 1267.605  Award.

    Award means an award of financial assistance by NASA or other 
Federal agency directly to a recipient.
    (a) The term award includes:
    (1) A Federal grant or cooperative agreement, in the form of money 
or property in lieu of money.
    (2) A block grant or a grant in an entitlement program, whether or 
not the grant is exempted from coverage under the Governmentwide rule 14 
CFR Part 1273 that implements OMB Circular A-102 (for availability, see 
5 CFR 1310.3) and specifies uniform administrative requirements.
    (b) The term award does not include:
    (1) Technical assistance that provides services instead of money.
    (2) Loans.
    (3) Loan guarantees.
    (4) Interest subsidies.
    (5) Insurance.
    (6) Direct appropriations.
    (7) Veterans' benefits to individuals (i.e., any benefit to 
veterans, their families, or survivors by virtue of the service of a 
veteran in the Armed Forces of the United States).



Sec. 1267.610  Controlled substance.

    Controlled substance means a controlled substance in schedules I 
through V of the Controlled Substances Act (21 U.S.C. 812), and as 
further defined by regulation at 21 CFR 1308.11 through 1308.15.



Sec. 1267.615  Conviction.

    Conviction means a finding of guilt (including a plea of nolo 
contendere) or imposition of sentence, or both, by any judicial body 
charged with the responsibility to determine violations of the Federal 
or State criminal drug statutes.



Sec. 1267.620  Cooperative agreement.

    Cooperative agreement means an award of financial assistance that, 
consistent with 31 U.S.C. 6305, is used to enter into the same kind of 
relationship as a grant (see definition of grant in Sec. 1267.650), 
except that substantial involvement is expected between the Federal 
agency and the recipient when carrying out the activity contemplated by 
the award. The term does not include cooperative research and 
development agreements as defined in 15 U.S.C. 3710a.



Sec. 1267.625  Criminal drug statute.

    Criminal drug statute means a Federal or non-Federal criminal 
statute involving the manufacture, distribution, dispensing, use, or 
possession of any controlled substance.



Sec. 1267.630  Debarment.

    Debarment means an action taken by a Federal agency to prohibit a 
recipient from participating in Federal Government procurement contracts 
and covered nonprocurement transactions. A recipient so prohibited is 
debarred, in accordance with the Federal Acquisition Regulation for 
procurement contracts (48 CFR part 9, subpart 9.4) and the common rule, 
Government-wide Debarment and Suspension (Nonprocurement), that 
implements Executive Order 12549 and Executive Order 12689.



Sec. 1267.635  Drug-free workplace.

    Drug-free workplace means a site for the performance of work done in 
connection with a specific award at which employees of the recipient are 
prohibited from engaging in the unlawful manufacture, distribution, 
dispensing,

[[Page 426]]

possession, or use of a controlled substance.



Sec. 1267.640  Employee.

    (a) Employee means the employee of a recipient directly engaged in 
the performance of work under the award, including--
    (1) All direct charge employees;
    (2) All indirect charge employees, unless their impact or 
involvement in the performance of work under the award is insignificant 
to the performance of the award; and
    (3) Temporary personnel and consultants who are directly engaged in 
the performance of work under the award and who are on the recipient's 
payroll.
    (b) This definition does not include workers not on the payroll of 
the recipient (e.g., volunteers, even if used to meet a matching 
requirement; consultants or independent contractors not on the payroll; 
or employees of subrecipients or subcontractors in covered workplaces).



Sec. 1267.645  Federal agency or agency.

    Federal agency or agency means any United States executive 
department, military department, government corporation, government 
controlled corporation, any other establishment in the executive branch 
(including the Executive Office of the President), or any independent 
regulatory agency.



Sec. 1267.650  Grant.

    Grant means an award of financial assistance that, consistent with 
31 U.S.C. 6304, is used to enter into a relationship--
    (a) The principal purpose of which is to transfer a thing of value 
to the recipient to carry out a public purpose of support or stimulation 
authorized by a law of the United States, rather than to acquire 
property or services for the Federal Government's direct benefit or use; 
and
    (b) In which substantial involvement is not expected between the 
Federal agency and the recipient when carrying out the activity 
contemplated by the award.



Sec. 1267.655  Individual.

    Individual means a natural person.



Sec. 1267.660  Recipient.

    Recipient means any individual, corporation, partnership, 
association, unit of government (except a Federal agency) or legal 
entity, however organized, that receives an award directly from a 
Federal agency.



Sec. 1267.665  State.

    State means any of the States of the United States, the District of 
Columbia, the Commonwealth of Puerto Rico, or any territory or 
possession of the United States.



Sec. 1267.670  Suspension.

    Suspension means an action taken by a Federal agency that 
immediately prohibits a recipient from participating in Federal 
Government procurement contracts and covered nonprocurement transactions 
for a temporary period, pending completion of an investigation and any 
judicial or administrative proceedings that may ensue. A recipient so 
prohibited is suspended, in accordance with the Federal Acquisition 
Regulation for procurement contracts (48 CFR part 9, subpart 9.4) and 
the common rule, Government-wide Debarment and Suspension 
(Nonprocurement), that implements Executive Order 12549 and Executive 
Order 12689. Suspension of a recipient is a distinct and separate action 
from suspension of an award or suspension of payments under an award.



PART 1271--NEW RESTRICTIONS ON LOBBYING--Table of Contents




                           Subpart A--General

Sec.
1271.100 Conditions on use of funds.
1271.105 Definitions.
1271.110 Certification and disclosure.

                 Subpart B--Activities by Own Employees

1271.200 Agency and legislative liaison.
1271.205 Professional and technical services.
1271.210 Reporting.

            Subpart C--Activities by Other Than Own Employees

1271.300 Professional and technical services.

[[Page 427]]

                  Subpart D--Penalties and Enforcement

1271.400 Penalties.
1271.405 Penalty procedures.
1271.410 Enforcement.

                          Subpart E--Exemptions

1271.500 Secretary of Defense.

                        Subpart F--Agency Reports

1271.600 Semi-annual compilation.
1271.605 Inspector General report.

Appendix A to Part 1271--Certification Regarding Lobbying
Appendix B to Part 1271--Disclosure Form to Report Lobbying

    Authority: Section 319, Pub. L. 101-121 (31 U.S.C. 1352); Pub. L. 
97-258 (31 U.S.C. 6301 et seq.)

    Cross Reference: See also Office of Management and Budget notice 
published at 54 FR 52306, December 20, 1989.

    Source: 55 FR 6737, 6748, Feb. 26, 1990, unless otherwise noted.



                           Subpart A--General



Sec. 1271.100  Conditions on use of funds.

    (a) No appropriated funds may be expended by the recipient of a 
Federal contract, grant, loan, or cooperative ageement to pay any person 
for influencing or attempting to influence an officer or employee of any 
agency, a Member of Congress, an officer or employee of Congress, or an 
employee of a Member of Congress in connection with any of the following 
covered Federal actions: the awarding of any Federal contract, the 
making of any Federal grant, the making of any Federal loan, the 
entering into of any cooperative agreement, and the extension, 
continuation, renewal, amendment, or modification of any Federal 
contract, grant, loan, or cooperative agreement.
    (b) Each person who requests or receives from an agency a Federal 
contract, grant, loan, or cooperative agreement shall file with that 
agency a certification, set forth in appendix A, that the person has not 
made, and will not make, any payment prohibited by paragraph (a) of this 
section.
    (c) Each person who requests or receives from an agency a Federal 
contract, grant, loan, or a cooperative agreement shall file with that 
agency a disclosure form, set forth in appendix B, if such person has 
made or has agreed to make any payment using nonappropriated funds (to 
include profits from any covered Federal action), which would be 
prohibited under paragraph (a) of this section if paid for with 
appropriated funds.
    (d) Each person who requests or receives from an agency a commitment 
providing for the United States to insure or guarantee a loan shall file 
with that agency a statement, set forth in appendix A, whether that 
person has made or has agreed to make any payment to influence or 
attempt to influence an officer or employee of any agency, a Member of 
Congress, an officer or employee of Congress, or an employee of a Member 
of Congress in connection with that loan insurance or guarantee.
    (e) Each person who requests or receives from an agency a commitment 
providing for the United States to insure or guarantee a loan shall file 
with that agency a disclosure form, set forth in appendix B, if that 
person has made or has agreed to make any payment to influence or 
attempt to influence an officer or employee of any agency, a Member of 
Congress, an officer or employee of Congress, or an employee of a Member 
of Congress in connection with that loan insurance or guarantee.



Sec. 1271.105  Definitions.

    For purposes of this part:
    (a) Agency, as defined in 5 U.S.C. 552(f), includes Federal 
executive departments and agencies as well as independent regulatory 
commissions and Government corporations, as defined in 31 U.S.C. 
9101(1).
    (b) Covered Federal action means any of the following Federal 
actions:
    (1) The awarding of any Federal contract;
    (2) The making of any Federal grant;
    (3) The making of any Federal loan;
    (4) The entering into of any cooperative agreement; and,
    (5) The extension, continuation, renewal, amendment, or modification 
of any Federal contract, grant, loan, or cooperative agreement.

Covered Federal action does not include receiving from an agency a 
commitment providing for the United States to insure or guarantee a 
loan.

[[Page 428]]

Loan guarantees and loan insurance are addressed independently within 
this part.
    (c) Federal contract means an acquisition contract awarded by an 
agency, including those subject to the Federal Acquisition Regulation 
(FAR), and any other acquisition contract for real or personal property 
or services not subject to the FAR.
    (d) Federal cooperative agreement means a cooperative agreement 
entered into by an agency.
    (e) Federal grant means an award of financial assistance in the form 
of money, or property in lieu of money, by the Federal Government or a 
direct appropriation made by law to any person. The term does not 
include technical assistance which provides services instead of money, 
or other assistance in the form of revenue sharing, loans, loan 
guarantees, loan insurance, interest subsidies, insurance, or direct 
United States cash assistance to an individual.
    (f) Federal loan means a loan made by an agency. The term does not 
include loan guarantee or loan insurance.
    (g) Indian tribe and tribal organization have the meaning provided 
in section 4 of the Indian Self-Determination and Education Assistance 
Act (25 U.S.C. 450B). Alaskan Natives are included under the definitions 
of Indian tribes in that Act.
    (h) Influencing or attempting to influence means making, with the 
intent to influence, any communication to or appearance before an 
officer or employee or any agency, a Member of Congress, an officer or 
employee of Congress, or an employee of a Member of Congress in 
connection with any covered Federal action.
    (i) Loan guarantee and loan insurance means an agency's guarantee or 
insurance of a loan made by a person.
    (j) Local government means a unit of government in a State and, if 
chartered, established, or otherwise recognized by a State for the 
performance of a governmental duty, including a local public authority, 
a special district, an intrastate district, a council of governments, a 
sponsor group representative organization, and any other instrumentality 
of a local government.
    (k) Officer or employee of an agency includes the following 
individuals who are employed by an agency:
    (1) An individual who is appointed to a position in the Government 
under title 5, U.S. Code, including a position under a temporary 
appointment;
    (2) A member of the uniformed services as defined in section 101(3), 
title 37, U.S. Code;
    (3) A special Government employee as defined in section 202, title 
18, U.S. Code; and,
    (4) An individual who is a member of a Federal advisory committee, 
as defined by the Federal Advisory Committee Act, title 5, U.S. Code 
appendix 2.
    (l) Person means an individual, corporation, company, association, 
authority, firm, partnership, society, State, and local government, 
regardless of whether such entity is operated for profit or not for 
profit. This term excludes an Indian tribe, tribal organization, or any 
other Indian organization with respect to expenditures specifically 
permitted by other Federal law.
    (m) Reasonable compensation means, with respect to a regularly 
employed officer or employee of any person, compensation that is 
consistent with the normal compensation for such officer or employee for 
work that is not furnished to, not funded by, or not furnished in 
cooperation with the Federal Government.
    (n) Reasonable payment means, with respect to perfessional and other 
technical services, a payment in an amount that is consistent with the 
amount normally paid for such services in the private sector.
    (o) Recipient includes all contractors, subcontractors at any tier, 
and subgrantees at any tier of the recipient of funds received in 
connection with a Federal contract, grant, loan, or cooperative 
agreement. The term excludes an Indian tribe, tribal organization, or 
any other Indian organization with respect to expenditures specifically 
permitted by other Federal law.
    (p) Regularly employed means, with respect to an officer or employee 
of a

[[Page 429]]

person requesting or receiving a Federal contract, grant, loan, or 
cooperative agreement or a commitment providing for the United States to 
insure or guarantee a loan, an officer or employee who is employed by 
such person for at least 130 working days within one year immediately 
preceding the date of the submission that initiates agency consideration 
of such person for receipt of such contract, grant, loan, cooperative 
agreement, loan insurance commitment, or loan guarantee commitment. An 
officer or employee who is employed by such person for less than 130 
working days within one year immediately preceding the date of the 
submission that initiates agency consideration of such person shall be 
considered to be regularly employed as soon as he or she is employed by 
such person for 130 working days.
    (q) State means a State of the United States, the District of 
Columbia, the Commonwealth of Puerto Rico, a territory or possession of 
the United States, an agency or instrumentality of a State, and a multi-
State, regional, or interstate entity having governmental duties and 
powers.



Sec. 1271.110  Certification and disclosure.

    (a) Each person shall file a certification, and a disclosure form, 
if required, with each submission that initiates agency consideration of 
such person for:
    (1) Award of a Federal contract, grant, or cooperative agreement 
exceeding $100,000; or
    (2) An award of a Federal loan or a commitment providing for the 
United States to insure or guarantee a loan exceeding $150,000.
    (b) Each person shall file a certification, and a disclosure form, 
if required, upon receipt by such person of:
    (1) A Federal contract, grant, or cooperative agreement exceeding 
$100,000; or
    (2) A Federal loan or a commitment providing for the United States 
to insure or guarantee a loan exceeding $150,000,

Unless such person previously filed a certification, and a disclosure 
form, if required, under paragraph (a) of this section.
    (c) Each person shall file a disclosure form at the end of each 
calendar quarter in which there occurs any event that requires 
disclosure or that materially affects the accuracy of the information 
contained in any disclosure form previously filed by such person under 
paragraphs (a) or (b) of this section. An event that materially affects 
the accuracy of the information reported includes:
    (1) A cumulative increase of $25,000 or more in the amount paid or 
expected to be paid for influencing or attempting to influence a covered 
Federal action; or
    (2) A change in the person(s) or individual(s) influencing or 
attempting to influence a covered Federal action; or,
    (3) A change in the officer(s), employee(s), or Member(s) contacted 
to influence or attempt to influence a covered Federal action.
    (d) Any person who requests or receives from a person referred to in 
paragraphs (a) or (b) of this section:
    (1) A subcontract exceeding $100,000 at any tier under a Federal 
contract;
    (2) A subgrant, contract, or subcontract exceeding $100,000 at any 
tier under a Federal grant;
    (3) A contract or subcontract exceeding $100,000 at any tier under a 
Federal loan exceeding $150,000; or,
    (4) A contract or subcontract exceeding $100,000 at any tier under a 
Federal cooperative agreement,

Shall file a certification, and a disclosure form, if required, to the 
next tier above.
    (e) All disclosure forms, but not certifications, shall be forwarded 
from tier to tier until received by the person referred to in paragraphs 
(a) or (b) of this section. That person shall forward all disclosure 
forms to the agency.
    (f) Any certification or disclosure form filed under paragraph (e) 
of this section shall be treated as a material representation of fact 
upon which all receiving tiers shall rely. All liability arising from an 
erroneous representation shall be borne solely by the tier filing that 
representation and shall not be shared by any tier to which the 
erroneous representation is forwarded. Submitting an erroneous 
certification or disclosure constitutes a failure to

[[Page 430]]

file the required certification or disclosure, respectively. If a person 
fails to file a required certification or disclosure, the United States 
may pursue all available remedies, including those authorized by section 
1352, title 31, U.S. Code.
    (g) For awards and commitments in process prior to December 23, 
1989, but not made before that date, certifications shall be required at 
award or commitment, covering activities occurring between December 23, 
1989, and the date of award or commitment. However, for awards and 
commitments in process prior to the December 23, 1989 effective date of 
these provisions, but not made before December 23, 1989, disclosure 
forms shall not be required at time of award or commitment but shall be 
filed within 30 days.
    (h) No reporting is required for an activity paid for with 
appropriated funds if that activity is allowable under either subpart B 
or C.



                 Subpart B--Activities by Own Employees



Sec. 1271.200  Agency and legislative liaison.

    (a) The prohibition on the use of appropriated funds, in Sec. 
1271.100 (a), does not apply in the case of a payment of reasonable 
compensation made to an officer or employee of a person requesting or 
receiving a Federal contract, grant, loan, or cooperative agreement if 
the payment is for agency and legislative liaison activities not 
directly related to a covered Federal action.
    (b) For purposes of paragraph (a) of this section, providing any 
information specifically requested by an agency or Congress is allowable 
at any time.
    (c) For purposes of paragraph (a) of this section, the following 
agency and legislative liaison activities are allowable at any time only 
where they are not related to a specific solicitation for any covered 
Federal action:
    (1) Discussing with an agency (including individual demonstrations) 
the qualities and characteristics of the person's products or services, 
conditions or terms of sale, and service capabilities; and,
    (2) Technical discussions and other activities regarding the 
application or adaptation of the person's products or services for an 
agency's use.
    (d) For purposes of paragraph (a) of this section, the following 
agencies and legislative liaison activities are allowable only where 
they are prior to formal solicitation of any covered Federal action:
    (1) Providing any information not specifically requested but 
necessary for an agency to make an informed decision about initiation of 
a covered Federal action;
    (2) Technical discussions regarding the preparation of an 
unsolicited proposal prior to its official submission; and,
    (3) Capability presentations by persons seeking awards from an 
agency pursuant to the provisions of the Small Business Act, as amended 
by Public Law 95-507 and other subsequent amendments.
    (e) Only those activities expressly authorized by this section are 
allowable under this section.



Sec. 1271.205  Professional and technical services.

    (a) The prohibition on the use of appropriated funds, in Sec. 
1271.100(a), does not apply in the case of a payment of reasonable 
compensation made to an officer or employee of a person requesting or 
receiving a Federal contract, grant, loan, or cooperative agreement or 
an extension, continuation, renewal, amendment, or modification of a 
Federal contract, grant, loan, or cooperative agreement if payment is 
for professional or technical services rendered directly in the 
preparation, submission, or negotiation of any bid, proposal, or 
application for that Federal contract, grant, loan, or cooperative 
agreement or for meeting requirements imposed by or pursuant to law as a 
condition for receiving that Federal contract, grant, loan, or 
cooperative agreement.
    (b) For purposes of paragraph (a) of this section, ``professional 
and technical services'' shall be limited to advice and analysis 
directly applying any professional or technical discipline. For example, 
drafting of a legal document accompanying a bid or proposal by a lawyer 
is allowable. Similarly,

[[Page 431]]

technical advice provided by an engineer on the performance or 
operational capability of a piece of equipment rendered directly in the 
negotiation of a contract is allowable. However, communications with the 
intent to influence made by a professional (such as a licensed lawyer) 
or a technical person (such as a licensed accountant) are not allowable 
under this section unless they provide advice and analysis directly 
applying their professional or technical expertise and unless the advice 
or analysis is rendered directly and solely in the preparation, 
submission or negotiation of a covered Federal action. Thus, for 
example, communications with the intent to influence made by a lawyer 
that do not provide legal advice or analysis directly and solely related 
to the legal aspects of his or her client's proposal, but generally 
advocate one proposal over another are not allowable under this section 
because the lawyer is not providing professional legal services. 
Similarly, communications with the intent to influence made by an 
engineer providing an engineering analysis prior to the preparation or 
submission of a bid or proposal are not allowable under this section 
since the engineer is providing technical services but not directly in 
the preparation, submission or negotiation of a covered Federal action.
    (c) Requirements imposed by or pursuant to law as a condition for 
receiving a covered Federal award include those required by law or 
regulation, or reasonably expected to be required by law or regulation, 
and any other requirements in the actual award documents.
    (d) Only those services expressly authorized by this section are 
allowable under this section.



Sec. 1271.210  Reporting.

    No reporting is required with respect to payments of reasonable 
compensation made to regularly employed officers or employees of a 
person.



            Subpart C--Activities by Other Than Own Employees



Sec. 1271.300  Professional and technical services.

    (a) The prohibition on the use of appropriated funds, in Sec. 
1271.100(a), does not apply in the case of any reasonable payment to a 
person, other than an officer or employee of a person requesting or 
receiving a covered Federal action, if the payment is for professional 
or technical services rendered directly in the preparation, submission, 
or negotiation of any bid, proposal, or application for that Federal 
contract, grant, loan, or cooperative agreement or for meeting 
requirements imposed by or pursuant to law as a condition for receiving 
that Federal contract, grant, loan, or cooperative agreement.
    (b) The reporting requirements in Sec. 1271.110 (a) and (b) 
regarding filing a disclosure form by each person, if required, shall 
not apply with respect to professional or technical services rendered 
directly in the preparation, submission, or negotiation of any 
commitment providing for the United States to insure or guarantee a 
loan.
    (c) For purposes of paragraph (a) of this section, ``professional 
and technical services'' shall be limited to advice and analysis 
directly applying any professional or technical discipline. For example, 
drafting or a legal document accompanying a bid or proposal by a lawyer 
is allowable. Similarly, technical advice provided by an engineer on the 
performance or operational capability of a piece of equipment rendered 
directly in the negotiation of a contract is allowable. However, 
communications with the intent to influence made by a professional (such 
as a licensed lawyer) or a technical person (such as a licensed 
accountant) are not allowable under this section unless they provide 
advice and analysis directly applying their professional or technical 
expertise and unless the advice or analysis is rendered directly

[[Page 432]]

and solely in the preparation, submission or negotiation of a covered 
Federal action. Thus, for example, communications with the intent to 
influence made by a lawyer that do not provide legal advice or analysis 
directly and solely related to the legal aspects of his or her client's 
proposal, but generally advocate one proposal over another are not 
allowable under this section because the lawyer is not providing 
professional legal services. Similarly, communications with the intent 
to influence made by an engineer providing an engineering analysis prior 
to the preparation or submission of a bid or proposal are not allowable 
under this section since the engineer is providing technical services 
but not directly in the preparation, submission or negotiation of a 
covered Federal action.
    (d) Requirements imposed by or pursuant to law as a condition for 
receiving a covered Federal award include those required by law or 
regulation, or reasonably expected to be required by law or regulation, 
and any other requirements in the actual award documents.
    (e) Persons other than officers or employees of a person requesting 
or receiving a covered Federal action include consultants and trade 
associations.
    (f) Only those services expressly authorized by this section are 
allowable under this section.



                  Subpart D--Penalties and Enforcement



Sec. 1271.400  Penalties.

    (a) Any person who makes an expenditure prohibited herein shall be 
subject to a civil penalty of not less than $10,000 and not more than 
$100,000 for each such expenditure.
    (b) Any person who fails to file or amend the disclosure form (see 
appendix B) to be filed or amended if required herein, shall be subject 
to a civil penalty of not less than $10,000 and not more than $100,000 
for each such failure.
    (c) A filing or amended filing on or after the date on which an 
administrative action for the imposition of a civil penalty is commenced 
does not prevent the imposition of such civil penalty for a failure 
occurring before that date. An administrative action is commenced with 
respect to a failure when an investigating official determines in 
writing to commence an investigation of an allegation of such failure.
    (d) In determining whether to impose a civil penalty, and the amount 
of any such penalty, by reason of a violation by any person, the agency 
shall consider the nature, circumstances, extent, and gravity of the 
violation, the effect on the ability of such person to continue in 
business, any prior violations by such person, the degree of culpability 
of such person, the ability of the person to pay the penalty, and such 
other matters as may be appropriate.
    (e) First offenders under paragraphs (a) or (b) of this section 
shall be subject to a civil penalty of $10,000, absent aggravating 
circumstances. Second and subsequent offenses by persons shall be 
subject to an appropriate civil penalty between $10,000 and $100,000, as 
determined by the agency head or his or her designee.
    (f) An imposition of a civil penalty under this section does not 
prevent the United States from seeking any other remedy that may apply 
to the same conduct that is the basis for the imposition of such civil 
penalty.



Sec. 1271.405  Penalty procedures.

    Agencies shall impose and collect civil penalties pursuant to the 
provisions of the Program Fraud and Civil Remedies Act, 31 U.S.C. 
sections 3803 (except subsection (c)), 3804, 3805, 3806, 3807, 3808, and 
3812, insofar as these provisions are not inconsistent with the 
requirements herein.



Sec. 1271.410  Enforcement.

    The head of each agency shall take such actions as are necessary to 
ensure that the provisions herein are vigorously implemented and 
enforced in that agency.

[[Page 433]]



                          Subpart E--Exemptions



Sec. 1271.500  Secretary of Defense.

    (a) The Secretary of Defense may exempt, on a case-by-case basis, a 
covered Federal action from the prohibition whenever the Secretary 
determines, in writing, that such an exemption is in the national 
interest. The Secretary shall transmit a copy of each such written 
exemption to Congress immediately after making such a determination.
    (b) The Department of Defense may issue supplemental regulations to 
implement paragraph (a) of this section.



                        Subpart F--Agency Reports



Sec. 1271.600  Semi-annual compilation.

    (a) The head of each agency shall collect and compile the disclosure 
reports (see appendix B) and, on May 31 and November 30 of each year, 
submit to the Secretary of the Senate and the Clerk of the House of 
Representatives a report containing a compilation of the information 
contained in the disclosure reports received during the six-month period 
ending on March 31 or September 30, respectively, of that year.
    (b) The report, including the compilation, shall be available for 
public inspection 30 days after receipt of the report by the Secretary 
and the Clerk.
    (c) Information that involves intelligence matters shall be reported 
only to the Select Committee on Intelligence of the Senate, the 
Permanent Select Committee on Intelligence of the House of 
Representatives, and the Committees on Appropriations of the Senate and 
the House of Representatives in accordance with procedures agreed to by 
such committees. Such information shall not be available for public 
inspection.
    (d) Information that is classified under Executive Order 12356 or 
any successor order shall be reported only to the Committee on Foreign 
Relations of the Senate and the Committee on Foreign Affairs of the 
House of Representatives or the Committees on Armed Services of the 
Senate and the House of Representatives (whichever such committees have 
jurisdiction of matters involving such information) and to the 
Committees on Appropriations of the Senate and the House of 
Representatives in accordance with procedures agreed to by such 
committees. Such information shall not be available for public 
inspection.
    (e) The first semi-annual compilation shall be submitted on May 31, 
1990, and shall contain a compilation of the disclosure reports received 
from December 23, 1989 to March 31, 1990.
    (f) Major agencies, designated by the Office of Management and 
Budget (OMB), are required to provide machine-readable compilations to 
the Secretary of the Senate and the Clerk of the House of 
Representatives no later than with the compilations due on May 31, 1991. 
OMB shall provide detailed specifications in a memorandum to these 
agencies.
    (g) Non-major agencies are requested to provide machine-readable 
compilations to the Secretary of the Senate and the Clerk of the House 
of Representatives.
    (h) Agencies shall keep the originals of all disclosure reports in 
the official files of the agency.



Sec. 1271.605  Inspector General report.

    (a) The Inspector General, or other official as specified in 
paragraph (b) of this section, of each agency shall prepare and submit 
to Congress each year, commencing with submission of the President's 
Budget in 1991, an evaluation of the compliance of that agency with, and 
the effectiveness of, the requirements herein. The evaluation may 
include any recommended changes that may be necessary to strengthen or 
improve the requirements.
    (b) In the case of an agency that does not have an Inspector 
General, the agency official comparable to an Inspector General shall 
prepare and submit the annual report, or, if there is no such comparable 
official, the head of the agency shall prepare and submit the annual 
report.
    (c) The annual report shall be submitted at the same time the agency 
submits its annual budget justifications to Congress.
    (d) The annual report shall include the following: All alleged 
violations relating to the agency's covered Federal actions during the 
year covered by the

[[Page 434]]

report, the actions taken by the head of the agency in the year covered 
by the report with respect to those alleged violations and alleged 
violations in previous years, and the amounts of civil penalties imposed 
by the agency in the year covered by the report.

        Appendix A to Part 1271--Certification Regarding Lobbying

 Certification for Contracts, Grants, Loans, and Cooperative Agreements

    The undersigned certifies, to the best of his or her knowledge and 
belief, that:
    (1) No Federal appropriated funds have been paid or will be paid, by 
or on behalf of the undersigned, to any person for influencing or 
attempting to influence an officer or employee of an agency, a Member of 
Congress, an officer or employee of Congress, or an employee of a Member 
of Congress in connection with the awarding of any Federal contract, the 
making of any Federal grant, the making of any Federal loan, the 
entering into of any cooperative agreement, and the extension, 
continuation, renewal, amendment, or modification of any Federal 
contract, grant, loan, or cooperative agreement.
    (2) If any funds other than Federal appropriated funds have been 
paid or will be paid to any person for influencing or attempting to 
influence an officer or employee of any agency, a Member of Congress, an 
officer or employee of Congress, or an employee of a Member of Congress 
in connection with this Federal contract, grant, loan, or cooperative 
agreement, the undersigned shall complete and submit Standard Form-LLL, 
``Disclosure Form to Report Lobbying,'' in accordance with its 
instructions.
    (3) The undersigned shall require that the language of this 
certification be included in the award documents for all subawards at 
all tiers (including subcontracts, subgrants, and contracts under 
grants, loans, and cooperative agreements) and that all subrecipients 
shall certify and disclose accordingly.
    This certification is a material representation of fact upon which 
reliance was placed when this transaction was made or entered into. 
Submission of this certification is a prerequisite for making or 
entering into this transaction imposed by section 1352, title 31, U.S. 
Code. Any person who fails to file the required certification shall be 
subject to a civil penalty of not less than $10,000 and not more than 
$100,000 for each such failure.

            Statement for Loan Guarantees and Loan Insurance

    The undersigned states, to the best of his or her knowledge and 
belief, that:
    If any funds have been paid or will be paid to any person for 
influencing or attempting to influence an officer or employee of any 
agency, a Member of Congress, an officer or employee of Congress, or an 
employee of a Member of Congress in connection with this commitment 
providing for the United States to insure or guarantee a loan, the 
undersigned shall complete and submit Standard Form-LLL, ``Disclosure 
Form to Report Lobbying,'' in accordance with its instructions.
    Submission of this statement is a prerequisite for making or 
entering into this transaction imposed by section 1352, title 31, U.S. 
Code. Any person who fails to file the required statement shall be 
subject to a civil penalty of not less than $10,000 and not more than 
$100,000 for each such failure.

[[Page 435]]

       Appendix B to Part 1271--Disclosure Form to Report Lobbying
[GRAPHIC] [TIFF OMITTED] TC09SE91.013


[[Page 436]]


[GRAPHIC] [TIFF OMITTED] TC09SE91.014


[[Page 437]]


[GRAPHIC] [TIFF OMITTED] TC09SE91.015


[[Page 438]]





PART 1273--UNIFORM ADMINISTRATIVE REQUIREMENTS FOR GRANTS AND COOPERATIVE AGREEMENTS TO STATE AND LOCAL GOVERNMENTS--Table of Contents




                           Subpart A--General

Sec.
1273.1 Purpose and scope of this part.
1273.2 Scope of subpart.
1273.3 Definitions.
1273.4 Applicability.
1273.5 Effect on other issuances.
1273.6 Additions and exceptions.

                    Subpart B--Pre-Award Requirements

1273.10 Forms for applying for grants.
1273.11 State plans.
1273.12 Special grant or subgrant conditions for ``high-risk'' grantees.

                   Subpart C--Post-Award Requirements

                        Financial Administration

1273.20 Standards for financial management systems.
1273.21 Payment.
1273.22 Allowable costs.
1273.23 Period of availability of funds.
1273.24 Matching or cost sharing.
1273.25 Program income.
1273.26 Non-Federal audit.

                    Changes, Property, and Subawards

1273.30 Changes.
1273.31 Real property.
1273.32 Equipment.
1273.33 Supplies.
1273.34 Copyrights.
1273.35 Subawards to debarred and suspended parties.
1273.36 Procurement.
1273.37 Subgrants.

              Reports, Records, Retention, and Enforcement

1273.40 Monitoring and reporting program performance.
1273.41 Financial reporting.
1273.42 Retention and access requirements for records.
1273.43 Enforcement.
1273.44 Termination for convenience.

                 Subpart D--After-the-Grant Requirements

1273.50 Closeout.
1273.51 Later disallowances and adjustments.
1273.52 Collection of amounts due.

Subpart E--Entitlements [Reserved]

    Authority: 31 U.S.C. 6301 to 6308; 42 U.S.C. 2451, et seq.

    Source: 60 FR 33694, June 29, 1995, unless otherwise noted.



                           Subpart A--General



Sec. 1273.1  Purpose and scope of this part.

    This subpart establishes uniform administrative rules for Federal 
grants and cooperative agreements and subawards to State, local and 
Indian tribal governments.



Sec. 1273.2  Scope of subpart.

    This subpart contains general rules pertaining to this part and 
procedures for control of exceptions from this part.



Sec. 1273.3  Definitions.

    As used in this part:
    Accrued expenditures mean the charges incurred by the grantee during 
a given period requiring the provision of funds for:
    (1) Goods and other tangible property received;
    (2) Services performed by employees, contractors, subgrantees, 
subcontractors, and other payees; and
    (3) Other amounts becoming owed under programs for which no current 
services or performance is required, such as annuities, insurance 
claims, and other benefit payments.
    Accrued income means the sum of:
    (1) Earnings during a given period from services performed by the 
grantee and goods and other tangible property delivered to purchasers, 
and
    (2) Amounts becoming owed to the grantee for which no current 
services or performance is required by the grantee.
    Acquisition cost of an item of purchased equipment means the net 
invoice unit price of the property including the cost of modifications, 
attachments, accessories, or auxiliary apparatus necessary to make the 
property usable for the purpose for which it was acquired. Other charges 
such as the cost of installation, transportation, taxes, duty or 
protective in-transit insurance, shall be included or excluded

[[Page 439]]

from the unit acquisition cost in accordance with the grantee's regular 
accounting practices.
    Administrative requirements mean those matters common to grants in 
general, such as financial management, kinds and frequency of reports, 
and retention of records. These are distinguished from ``programmatic'' 
requirements, which concern matters that can be treated only on a 
program-by-program or grant-by-grant basis, such as kinds of activities 
that can be supported by grants under a particular program.
    Awarding agency means:
    (1) With respect to a grant, the Federal agency, and
    (2) With respect to a subgrant, the party that awarded the subgrant.
    Cash contributions means the grantee's cash outlay, including the 
outlay of money contributed to the grantee or subgrantee by other public 
agencies and institutions, and private organizations and individuals. 
When authorized by Federal legislation, Federal funds received from 
other assistance agreements may be considered as grantee or subgrantee 
cash contributions.
    Contract means (except as used in the definitions for ``grant'' and 
``subgrant'' in this section and except where qualified by ``Federal'') 
a procurement contract under a grant or subgrant, and means a 
procurement subcontract under a contract.
    Cost sharing or matching means the value of the third party in-kind 
contributions and the portion of the costs of a federally assisted 
project or program not borne by the Federal Government.
    Cost-type contract means a contract or subcontract under a grant in 
which the contractor or subcontractor is paid on the basis of the costs 
it incurs, with or without a fee.
    Equipment means tangible, nonexpendable, personal property having a 
useful life of more than one year and an acquisition cost of $5,000 or 
more per unit. A grantee may use its own definition of equipment 
provided that such definition would at least include all equipment 
defined above.
    Expenditure report means:
    (1) For nonconstruction grants, the SF-269 ``Financial Status 
Report'' (or other equivalent report);
    (2) For construction grants, the SF-271 ``Outlay Report and Request 
for Reimbursement'' (or other equivalent report).
    Federally recognized Indian tribal government means the governing 
body or a governmental agency of any Indian tribe, band, nation, or 
other organized group or community (including any Native village as 
defined in section 3 of the Alaska Native Claims Settlement Act, 85 
Stat. 688) certified by the Secretary of the Interior as eligible for 
the special programs and services provided by him through the Bureau of 
Indian Affairs.
    Government means a State or local government or a federally 
recognized Indian tribal government.
    Grant means an award of financial assistance, including cooperative 
agreements, in the form of money, or property in lieu of money, by the 
Federal Government to an eligible grantee. The term does not include 
technical assistance which provides services instead of money, or other 
assistance in the form of revenue sharing, loans, loan guarantees, 
interest subsidies, insurance, or direct appropriations. Also, the term 
does not include assistance, such as a fellowship or other lump sum 
award, which the grantee is not required to account for.
    Grantee means the government to which a grant is awarded and which 
is accountable for the use of the funds provided. The grantee is the 
entire legal entity even if only a particular component of the entity is 
designated in the grant award document.
    Local government means a county, municipality, city, town, township, 
local public authority (including any public and Indian housing agency 
under the United States Housing Act of 1937) school district, special 
district, intrastate district, council of governments (whether or not 
incorporated as a nonprofit corporation under state law), any other 
regional or interstate government entity, or any agency or 
instrumentality of a local government.
    Obligations means the amounts of orders placed, contracts and 
subgrants awarded, goods and services received,

[[Page 440]]

and similar transactions during a given period that will require payment 
by the grantee during the same or a future period.
    OMB means the United States Office of Management and Budget.
    Outlays (expenditures) mean charges made to the project or program. 
They may be reported on a cash or accrual basis. For reports prepared on 
a cash basis, outlays are the sum of actual cash disbursement for direct 
charges for goods and services, the amount of indirect expense incurred, 
the value of in-kind contributions applied, and the amount of cash 
advances and payments made to contractors and subgrantees. For reports 
prepared on an accrued expenditure basis, outlays are the sum of actual 
cash disbursements, the amount of indirect expense incurred, the value 
of inkind contributions applied, and the new increase (or decrease) in 
the amounts owed by the grantee for goods and other property received, 
for services performed by employees, contractors, subgrantees, 
subcontractors, and other payees, and other amounts becoming owed under 
programs for which no current services or performance are required, such 
as annuities, insurance claims, and other benefit payments.
    Percentage of completion method refers to a system under which 
payments are made for construction work according to the percentage of 
completion of the work, rather than to the grantee's cost incurred.
    Prior approval means documentation evidencing consent prior to 
incurring specific cost.
    Real property means land, including land improvements, structures 
and appurtenances thereto, excluding movable machinery and equipment.
    Share, when referring to the awarding agency's portion of real 
property, equipment or supplies, means the same percentage as the 
awarding agency's portion of the acquiring party's total costs under the 
grant to which the acquisition cost of the property was charged. Only 
costs are to be counted--not the value of third-party in-kind 
contributions.
    State means any of the several States of the United States, the 
District of Columbia, the Commonwealth of Puerto Rico, any territory or 
possession of the United States, or any agency or instrumentality of a 
State exclusive of local governments. The term does not include any 
public and Indian housing agency under United States Housing Act of 
1937.
    Subgrant means an award of financial assistance in the form of 
money, or property in lieu of money, made under a grant by a grantee to 
an eligible subgrantee. The term includes financial assistance when 
provided by contractual legal agreement, but does not include 
procurement purchases, nor does it include any form of assistance which 
is excluded from the definition of ``grant'' in this subpart.
    Subgrantee means the government or other legal entity to which a 
subgrant is awarded and which is accountable to the grantee for the use 
of the funds provided.
    Supplies means all tangible personal property other than 
``equipment'' as defined in this part.
    Suspension means depending on the context, either
    (1) Temporary withdrawal of the authority to obligate grant funds 
pending corrective action by the grantee or subgrantee or a decision to 
terminate the grant; or
    (2) An action taken by a suspending official in accordance with 
agency regulations implementing E.O. 12549 to immediately exclude a 
person from participating in grant transactions for a period, pending 
completion of an investigation and such legal or debarment proceedings 
as may ensue.
    Termination means permanent withdrawal of the authority to obligate 
previously-awarded grant funds before that authority would otherwise 
expire. It also means the voluntary relinquishment of that authority by 
the grantee or subgrantee. ``Termination'' does not include:
    (1) Withdrawal of funds awarded on the basis of the grantee's 
underestimate of the unobligated balance in a prior period;
    (2) Withdrawal of the unobligated balance as of the expiration of a 
grant;
    (3) Refusal to extend a grant or award additional funds, to make a 
competing or noncompeting continuation, renewal, extension, or 
supplemental award; or

[[Page 441]]

    (4) Voiding of a grant upon determination that the award was 
obtained fraudulently, or was otherwise illegal or invalid from 
inception.
    Terms of a grant or subgrant mean all requirements of the grant or 
subgrant, whether in statute, regulations, or the award document.
    Third party in-kind contributions mean property or services which 
benefit a federally assisted project or program and which are 
contributed by non-Federal third parties without charge to the grantee, 
or a cost-type contractor under the grant agreement.
    Unliquidated obligations for reports prepared on a cash basis mean 
the amount of obligations incurred by the grantee that has not been 
paid. For reports prepared on an accrued expenditure basis, they 
represent the amount of obligations incurred by the grantee for which an 
outlay has not been recorded.
    Unobligated balance means the portion of the funds authorized by the 
Federal agency that has not been obligated by the grantee and is 
determined by deducting the cumulative obligations from the cumulative 
funds authorized.



Sec. 1273.4  Applicability.

    (a) General. Subparts A through D of this part apply to all grants 
and subgrants to governments, except where inconsistent with Federal 
statutes or with regulations authorized in accordance with the exception 
provision of Sec. 1273.6 or:
    (1) Grants and subgrants to State and local institutions of higher 
education or State and local hospitals.
    (2) The block grants authorized by the Omnibus Budget Reconciliation 
Act of 1981 (Community Services; Preventive Health and Health Services; 
Alcohol, Drug Abuse, and Mental Health Services; Maternal and Child 
Health Services; Social Services; Low-Income Home Energy Assistance; 
States' Program of Community Development Block Grants for Small Cities; 
and Elementary and Secondary Education other than programs administered 
by the Secretary of Education under Title V, Subtitle D, Chapter 2, 
Section 583--the Secretary's discretionary grant program) and titles I-
III of the Job Training Partnership Act of 1982 and under the Public 
Health Services Act (Section 1921), Alcohol and Drug Abuse Treatment and 
Rehabilitation Block Grant and Part C of title V, Mental Health Service 
for the Homeless Block Grant).
    (3) Entitlement grants to carry out the following programs of the 
Social Security Act:
    (i) Aid to Needy Families with Dependent Children (Title IV-A of the 
Act, not including the Work Incentive Program (WIN) authorized by 
section 402(a)19(G); HHS grants for WIN are subject to this part);
    (ii) Child Support Enforcement and Establishment of Paternity (Title 
IV-D of the Act);
    (iii) Foster Care and Adoption Assistance (Title IV-E of the Act);
    (iv) Aid to the Aged, Blind, and Disabled (Titles I, X, XIV, and 
XVI-AABD of the Act); and
    (v) Medical Assistance (Medicaid) (Title XIX of the Act) not 
including the State Medicaid Fraud Control program authorized by section 
1903(a)(6)(B).
    (4) Entitlement grants under the following programs of The National 
School Lunch Act:
    (i) School Lunch (section 4 of the Act),
    (ii) Commodity Assistance (section 6 of the Act),
    (iii) Special Meal Assistance (section 11 of the Act),
    (iv) Summer Food Service for Children (section 13 of the Act), and
    (v) Child Care Food Program (section 17 of the Act).
    (5) Entitlement grants under the following programs of The Child 
Nutrition Act of 1966:
    (i) Special Milk (section 3 of the Act), and
    (ii) School Breakfast (section 4 of the Act).
    (6) Entitlement grants for State Administrative expenses under The 
Food Stamp Act of 1977 (section 16 of the Act).
    (7) A grant for an experimental, pilot, or demonstration project 
that is also supported by a grant listed in paragraph (a)(3) of this 
section;
    (8) Grant funds awarded under subsection 412(e) of the Immigration 
and Nationality Act (8 U.S.C. 1522(e)) and

[[Page 442]]

subsection 501(a) of the Refugee Education Assistance Act of 1980 (Pub. 
L. 96-422, 94 Stat. 1809), for cash assistance, medical assistance, and 
supplemental security income benefits to refugees and entrants and the 
administrative costs of providing the assistance and benefits;
    (9) Grants to local education agencies under 20 U.S.C. 236 through 
241-1(a), and 242 through 244 (portions of the Impact Aid program), 
except for 20 U.S.C. 238(d)(2)(c) and 240(f) (Entitlement Increase for 
Handicapped Children); and
    (10) Payments under the Veterans Administration's State Home Per 
Diem Program (38 U.S.C. 641(a)).
    (b) Entitlement programs. Entitlement programs enumerated above in 
Sec. 1273.4(a)(3) through (8) are subject to subpart E.



Sec. 1273.5  Effect on other issuances.

    All other grants administration provisions of codified program 
regulations, program manuals, handbooks and other nonregulatory 
materials which are inconsistent with this part are superseded, except 
to the extent they are required by statute, or authorized in accordance 
with the exception provision in Sec. 1273.6.



Sec. 1273.6  Additions and exceptions.

    (a) For classes of grants and grantees subject to this part, Federal 
agencies may not impose additional administrative requirements except in 
codified regulations published in the Federal Register.
    (b) Exceptions for classes of grants or grantees may be authorized 
only by OMB.
    (c) Exceptions on a case-by-case basis and for subgrantees may be 
authorized by the affected Federal agencies.



                    Subpart B--Pre-Award Requirements



Sec. 1273.10  Forms for applying for grants.

    (a) Scope. (1) This section prescribes forms and instructions to be 
used by governmental organizations (except hospitals and institutions of 
higher education operated by a government) in applying for grants. This 
section is not applicable, however, to formula grant programs which do 
not require applicants to apply for funds on a project basis.
    (2) This section applies only to applications to Federal agencies 
for grants, and is not required to be applied by grantees in dealing 
with applicants for subgrants. However, grantees are encouraged to avoid 
more detailed or burdensome application requirements for subgrants.
    (b) Authorized forms and instructions for governmental 
organizations. (1) In applying for grants, applicants shall only use 
standard application forms or those prescribed by the granting agency 
with the approval of OMB under the Paperwork Reduction Act of 1980.
    (2) Applicants are not required to submit more than the original and 
two copies of preapplications or applications.
    (3) Applicants must follow all applicable instructions that bear OMB 
clearance numbers. Federal agencies may specify and describe the 
programs, functions, or activities that will be used to plan, budget, 
and evaluate the work under a grant. Other supplementary instructions 
may be issued only with the approval of OMB to the extent required under 
the Paperwork Reduction Act of 1980. For any standard form, except the 
SF-424 factsheet, Federal agencies may shade out or instruct the 
applicant to disregard any line item that is not needed.
    (4) When a grantee applies for additional funding (such as a 
continuation or supplemental award) or amends a previously submitted 
application, only the affected pages need be submitted. Previously 
submitted pages with information that is still current need not be 
resubmitted.



Sec. 1273.11  State plans.

    (a) Scope. The statutes for some programs require States to submit 
plans before receiving grants. Under regulations implementing Executive 
Order 12372, ``Intergovernmental Review of Federal Programs,'' States 
are allowed to simplify, consolidate and substitute plans. This section 
contains additional provisions for plans that are subject to regulations 
implementing the Executive Order.

[[Page 443]]

    (b) Requirements. A State need meet only Federal administrative or 
programmatic requirements for a plan that are in statutes or codified 
regulations.
    (c) Assurances. In each plan the State will include an assurance 
that the State shall comply with all applicable Federal statutes and 
regulations in effect with respect to the periods for which it receives 
grant funding. For this assurance and other assurances required in the 
plan, the State may:
    (1) Cite by number the statutory or regulatory provisions requiring 
the assurances and affirm that it gives the assurances required by those 
provisions,
    (2) Repeat the assurance language in the statutes or regulations, or
    (3) Develop its own language to the extent permitted by law.
    (d) Amendments. A State will amend a plan whenever necessary to 
reflect:
    (1) New or revised Federal statutes or regulations; or
    (2) A material change in any State law, organization, policy, or 
State agency operation. The State will obtain approval for the amendment 
and its effective date but need submit for approval only the amended 
portions of the plan.



Sec. 1273.12  Special grant or subgrant conditions for ``high-risk'' grantees.

    (a) A grantee or subgrantee may be considered ``high risk'' if an 
awarding agency determines that a grantee or subgrantee:
    (1) Has a history of unsatisfactory performance, or
    (2) Is not financially stable, or
    (3) Has a management system which does not meet the management 
standards set forth in this part, or
    (4) Has not conformed to terms and conditions of previous awards, or
    (5) Is otherwise not responsible; and if the awarding agency 
determines that an award will be made, special conditions and/or 
restrictions shall correspond to the high risk condition and shall be 
included in the award.
    (b) Special conditions or restrictions may include:
    (1) Payment on a reimbursement basis;
    (2) Withholding authority to proceed to the next phase until receipt 
of evidence of acceptable performance within a given funding period;
    (3) Requiring additional, more detailed financial reports;
    (4) Additional project monitoring;
    (5) Requiring the grantee or subgrantee to obtain technical or 
management assistance; or
    (6) Establishing additional prior approvals.
    (c) If an awarding agency decides to impose such conditions, the 
awarding official will notify the grantee or subgrantee as early as 
possible, in writing, of:
    (1) The nature of the special conditions/restrictions;
    (2) The reason(s) for imposing them;
    (3) The corrective actions which must be taken before they will be 
removed and the time allowed for completing the corrective actions; and
    (4) The method of requesting reconsideration of the conditions/
restrictions imposed.



                   Subpart C--Post-Award Requirements

                        Financial Administration



Sec. 1273.20  Standards for financial management systems.

    (a) A State must expand and account for grant funds in accordance 
with State laws and procedures for expending and accounting for its own 
funds. Fiscal control and accounting procedures of the State, as well as 
its subgrantees and cost-type contractors, must be sufficient to--
    (1) Permit preparation of reports required by this part and the 
statutes authorizing the grant, and
    (2) Permit the tracing of funds to a level of expenditures adequate 
to establish that such funds have not been used in violation of the 
restrictions and prohibitions of applicable statutes.
    (b) The financial management systems of other grantees and 
subgrantees must meet the following standards:
    (1) Financial reporting. Accurate, current, and complete disclosure 
of the financial results of financially assisted activities must be made 
in accordance

[[Page 444]]

with the financial reporting requirements of the grant or subgrant.
    (2) Accounting records. Grantees and subgrantees must maintain 
records which adequately identify the source and application of funds 
provided for financially-assisted activities. These records must contain 
information pertaining to grant or subgrant awards and authorizations, 
obligations, unobligated balances, assets, liabilities, outlays or 
expenditures, and income.
    (3) Internal control. Effective control and accountability must be 
maintained for all grant and subgrant cash, real and personal property, 
and other assets. Grantees and subgrantees must adequately safeguard all 
such property and must assure that it is used solely for authorized 
purposes.
    (4) Budget control. Actual expenditures or outlays must be compared 
with budgeted amounts for each grant or subgrant. Financial information 
must be related to performance or productivity data, including the 
development of unit cost information whenever appropriate or 
specifically required in the grant or subgrant agreement. If unit cost 
data are required, estimates based on available documentation will be 
accepted whenever possible.
    (5) Allowable cost. Applicable OMB cost principles, agency program 
regulations, and the terms of grant and subgrant agreements will be 
followed in determining the reasonableness, allowability, and 
allocability of costs.
    (6) Source documentation. Accounting records must be supported by 
such source documentation as cancelled checks, paid bills, payrolls, 
time and attendance records, contract and subgrant award documents, etc.
    (7) Cash management. Procedures for minimizing the time elapsing 
between the transfer of funds from the U.S. Treasury and disbursement by 
grantees and subgrantees must be followed whenever advance payment 
procedures are used. Grantees must establish reasonable procedures to 
ensure the receipt of reports on subgrantees' cash balances and cash 
disbursements in sufficient time to enable them to prepare complete and 
accurate cash transactions reports to the awarding agency. When advances 
are made by letter-of-credit or electronic transfer of funds methods, 
the grantee must make drawdowns as close as possible to the time of 
making disbursements. Grantees must monitor cash drawdowns by their 
subgrantees to assure that they conform substantially to the same 
standards of timing and amount as apply to advances to the grantees.
    (c) An awarding agency may review the adequacy of the financial 
management system of any applicant for financial assistance as part of a 
preaward review or at any time subsequent to award.



Sec. 1273.21  Payment.

    (a) Scope. This section prescribes the basic standard and the 
methods under which a Federal agency will make payments to grantees, and 
grantees will make payments to subgrantees and contractors.
    (b) Basic standard. Methods and procedures for payment shall 
minimize the time elapsing between the transfer of funds and 
disbursement by the grantee or subgrantee, in accordance with Treasury 
regulations at 31 CFR part 205.
    (c) Advances. Grantees and subgrantees shall be paid in advance, 
provided they maintain or demonstrate the willingness and ability to 
maintain procedures to minimize the time elapsing between the transfer 
of the funds and their disbursement by the grantee or subgrantee.
    (d) Reimbursement. Reimbursement shall be the preferred method when 
the requirements in paragraph (c) of this section are not met. Grantees 
and subgrantees may also be paid by reimbursement for any construction 
grant. Except as otherwise specified in regulation, Federal agencies 
shall not use the percentage of completion method to pay construction 
grants. The grantee or subgrantee may use that method to pay its 
construction contractor, and if it does, the awarding agency's payments 
to the grantee or subgrantee will be based on the grantee's or 
subgrantee's actual rate of disbursement.
    (e) Working capital advances. If a grantee cannot meet the criteria 
for

[[Page 445]]

advance payments described in paragraph (c) of this section, and the 
Federal agency has determined that reimbursement is not feasible because 
the grantee lacks sufficient working capital, the awarding agency may 
provide cash on a working capital advance basis. Under this procedure 
the awarding agency shall advance cash to the grantee to cover its 
estimated disbursement needs for an initial period generally geared to 
the grantee's disbursing cycle. Thereafter, the awarding agency shall 
reimburse the grantee for its actual cash disbursements. The working 
capital advance method of payment shall not be used by grantees or 
subgrantees if the reason for using such method is the unwillingness or 
inability of the grantee to provide timely advances to the subgrantee to 
meet the subgrantee's actual cash disbursements.
    (f) Effect of program income, refunds, and audit recoveries on 
payment. (1) Grantees and subgrantees shall disburse repayments to and 
interest earned on a revolving fund before requesting additional cash 
payments for the same activity.
    (2) Except as provided in paragraph (f)(1) of this section, grantees 
and subgrantees shall disburse program income, rebates, refunds, 
contract settlements, audit recoveries and interest earned on such funds 
before requesting additional cash payments.
    (g) Withholding payments. (1) Unless otherwise required by Federal 
statute, awarding agencies shall not withhold payments for proper 
charges incurred by grantees or subgrantees unless-
    (i) The grantee or subgrantee has failed to comply with grant award 
conditions or
    (ii) The grantee or subgrantee is indebted to the United States.
    (2) Cash withheld for failure to comply with grant award condition, 
but without suspension of the grant, shall be released to the grantee 
upon subsequent compliance. When a grant is suspended, payment 
adjustments will be made in accordance with Sec. 1273.43(c).
    (3) A Federal agency shall not make payment to grantees for amounts 
that are withheld by grantees or subgrantees from payment to contractors 
to assure satisfactory completion of work. Payments shall be made by the 
Federal agency when the grantees or subgrantees actually disburse the 
withheld funds to the contractors or to escrow accounts established to 
assure satisfactory completion of work.
    (h) Cash depositories. (1) Consistent with the national goal of 
expanding the opportunities for minority business enterprises, grantees 
and subgrantees are encouraged to use minority banks (a bank which is 
owned at least 50 percent by minority group members). A list of minority 
owned banks can be obtained from the Minority Business Development 
Agency, Department of Commerce, Washington, DC 20230.
    (2) A grantee or subgrantee shall maintain a separate bank account 
only when required by Federal-State agreement.
    (i) Interest earned on advances. Except for interest earned on 
advances of funds exempt under the Intergovernmental Cooperation Act (31 
U.S.C. 6501 et seq.) and the Indian Self-Determination Act (23 U.S.C. 
450), grantees and subgrantees shall promptly, but at least quarterly, 
remit interest earned on advances to the Federal agency. The grantee or 
subgrantee may keep interest amounts up to $100 per year for 
administrative expenses.



Sec. 1273.22  Allowable costs.

    (a) Limitation on use of funds. Grant funds may be used only for:
    (1) The allowable costs of the grantees, subgrantees and cost-type 
contractors, including allowable costs in the form of payments to fixed-
price contractors; and
    (2) Reasonable fees or profit to cost-type contractors but not any 
fee or profit (or other increment above allowable costs) to the grantee 
or subgrantee.
    (b) Applicable cost principles. For each kind of organization, there 
is a set of Federal principles for determining allowable costs. 
Allowable costs will be determined in accordance with the cost 
principles applicable to the organization incurring the costs. The 
following chart lists the kinds of organizations and the applicable cost 
principles.

[[Page 446]]



------------------------------------------------------------------------
           For the costs of a                 Use the principles in:
------------------------------------------------------------------------
State, local or Indian tribal            OMB Circular A-87.
 government.
Private nonprofit organization other     OMB Circular A-122.
 than an (1) institution of higher
 education, (2) hospital, or (3)
 organization named in OMB Circular A-
 122 as not subject to that circular.
Educational institutions...............  OMB Circular A-21.
For-profit organization other than a     48 CFR part 31, Contract Cost
 hospital and an organization named in    Principles and Procedures, or
 OMB Circular A-122 as not subject to     uniform cost accounting
 that circular.                           standards that comply with
                                          cost principles acceptable to
                                          the Federal agency.
------------------------------------------------------------------------



Sec. 1273.23  Period of availability of funds.

    (a) General. Where a funding period is specified, a grantee may 
charge to the award only costs resulting from obligations of the funding 
period unless carryover of unobligated balances is permitted, in which 
case the carryover balances may be charged for costs resulting from 
obligations of the subsequent funding period.
    (b) Liquidation of obligations. A grantee must liquidate all 
obligations incurred under the award not later than 90 days after the 
end of the funding period (or as specified in a program regulation) to 
coincide with the submission of the annual Financial Status Report (SF-
269). The Federal agency may extend this deadline at the request of the 
grantee.



Sec. 1273.24  Matching or cost sharing.

    (a) Basic rule: Costs and contributions acceptable. With the 
qualifications and exceptions listed in paragraph (b) of this section, a 
matching or cost sharing requirement may be satisfied by either or both 
of the following:
    (1) Allowable costs incurred by the grantee, subgrantee or a cost-
type contractor under the assistance agreement. This includes allowable 
costs borne by non-Federal grants or by others cash donations from non-
Federal third parties.
    (2) The value of third party in-kind contributions applicable to the 
period to which the cost sharing or matching requirements applies.
    (b) Qualifications and exceptions--(1) Costs borne by other Federal 
grant agreements. Except as provided by Federal statute, a cost sharing 
or matching requirement may not be met by costs borne by another Federal 
grant. This prohibition does not apply to income earned by a grantee or 
subgrantee from a contract awarded under another Federal grant.
    (2) General revenue sharing. For the purpose of this section, 
general revenue sharing funds distributed under 31 U.S.C. 6702 are not 
considered Federal grant funds.
    (3) Cost or contributions counted towards other Federal costs-
sharing requirements. Neither costs nor the values of third party in-
kind contributions may count towards satisfying a cost sharing or 
matching requirement of a grant agreement if they have been or will be 
counted towards satisfying a cost sharing or matching requirement of 
another Federal grant agreement, a Federal procurement contract, or any 
other award of Federal funds.
    (4) Costs financed by program income. Costs financed by program 
income, as defined in Sec. 1273.25, shall not count towards satisfying 
a cost sharing or matching requirement unless they are expressly 
permitted in the terms of the assistance agreement. (This use of general 
program income is described in Sec. 1273.25(g).)
    (5) Services or property financed by income earned by contractors. 
Contractors under a grant may earn income from the activities carried 
out under the contract in addition to the amounts earned from the party 
awarding the contract. No costs of services or property supported by 
this income may count toward satisfying a cost sharing or matching 
requirement unless other provisions of the grant agreement expressly 
permit this kind of income to be used to meet the requirement.
    (6) Records. Costs and third party in-kind contributions counting 
towards satisfying a cost sharing or matching requirement must be 
verifiable from the records of grantees and subgrantee or cost-type 
contractors. These records must show how the value placed on third party 
in-kind contributions was

[[Page 447]]

derived. To the extent feasible, volunteer services will be supported by 
the same methods that the organization uses to support the allocability 
of regular personnel costs.
    (7) Special standards for third party in-kind contributions. (i) 
Third party in-kind contributions count towards satisfying a cost 
sharing or matching requirement only where, if the party receiving the 
contributions were to pay for them, the payments would be allowable 
costs.
    (ii) Some third party in-kind contributions are goods and services 
that, if the grantee, subgrantee, or contractor receiving the 
contribution had to pay for them, the payments would have been an 
indirect costs. Costs sharing or matching credit for such contributions 
shall be given only if the grantee, subgrantee, or contractor has 
established, along with its regular indirect cost rate, a special rate 
for allocating to individual projects or programs the value of the 
contributions.
    (iii) A third party in-kind contribution to a fixed-price contract 
may count towards satisfying a cost sharing or matching requirement only 
if it results in:
    (A) An increase in the services or property provided under the 
contract (without additional cost to the grantee or subgrantee) or
    (B) A cost savings to the grantee or subgrantee.
    (iv) The values placed on third party in-kind contributions for cost 
sharing or matching purposes will conform to the rules in the succeeding 
sections of this part. If a third party in-kind contribution is a type 
not treated in those sections, the value placed upon it shall be fair 
and reasonable.
    (c) Valuation of donated services--(1) Volunteer services. Unpaid 
services provided to a grantee or subgrantee by individuals will be 
valued at rates consistent with those ordinarily paid for similar work 
in the grantee's or subgrantee's organization. If the grantee or 
subgrantee does not have employees performing similar work, the rates 
will be consistent with those ordinarily paid by other employers for 
similar work in the same labor market. In either case, a reasonable 
amount for fringe benefits may be included in the valuation.
    (2) Employees of other organizations. When an employer other than a 
grantee, subgrantee, or cost-type contractor furnishes free of charge 
the services of an employee in the employee's normal line of work, the 
services will be valued at the employee's regular rate of pay exclusive 
of the employee's fringe benefits and overhead costs. If the services 
are in a different line of work, paragraph (c)(1) of this section 
applies.
    (d) Valuation of third party donated supplies and loaned equipment 
or space. (1) If a third party donates supplies, the contribution will 
be valued at the market value of the supplies at the time of donation.
    (2) If a third party donates the use of equipment or space in a 
building but retains title, the contribution will be valued at the fair 
rental rate of the equipment or space.
    (e) Valuation of third party donated equipment, buildings, and land. 
If a third party donates equipment, buildings, or land, and title passes 
to a grantee or subgrantee, the treatment of the donated property will 
depend upon the purpose of the grant or subgrant, as follows:
    (1) Awards for capital expenditures. If the purpose of the grant or 
subgrant is to assist the grantee or subgrantee in the acquisition of 
property, the market value of that property at the time of donation may 
be counted as cost sharing or matching,
    (2) Other awards. If assisting in the acquisition of property is not 
the purpose of the grant or subgrant, paragraphs (e)(2)(i) and (ii) of 
this section apply:
    (i) If approval is obtained from the awarding agency, the market 
value at the time of donation of the donated equipment or buildings and 
the fair rental rate of the donated land may be counted as cost sharing 
or matching. In the case of a subgrant, the terms of the grant agreement 
may require that the approval be obtained from the Federal agency as 
well as the grantee. In all cases, the approval may be given only if a 
purchase of the equipment or rental of the land would be approved as an 
allowable direct cost. If any part of the donated property was acquired

[[Page 448]]

with Federal funds, only the non-federal share of the property may be 
counted as cost-sharing or matching.
    (ii) If approval is not obtained under paragraph (e)(2)(i) of this 
section, no amount may be counted for donated land, and only 
depreciation or use allowances may be counted for donated equipment and 
buildings. The depreciation or use allowances for this property are not 
treated as third party in-kind contributions. Instead, they are treated 
as costs incurred by the grantee or subgrantee. They are computed and 
allocated (usually as indirect costs) in accordance with the cost 
principles specified in Sec. 1273.22, in the same way as depreciation 
or use allowances for purchased equipment and buildings. The amount of 
depreciation or use allowances for donated equipment and buildings is 
based on the property's market value at the time it was donated.
    (f) Valuation of grantee or subgrantee donated real property for 
construction/acquisition. If a grantee or subgrantee donates real 
property for a construction or facilities acquisition project, the 
current market value of that property may be counted as cost sharing or 
matching. If any part of the donated property was acquired with Federal 
funds, only the non-federal share of the property may be counted as cost 
sharing or matching.
    (g) Appraisal of real property. In some cases under paragraphs (d), 
(e) and (f) of this section, it will be necessary to establish the 
market value of land or a building or the fair rental rate of land or of 
space in a building. In these cases, the Federal agency may require the 
market value or fair rental value be set by an independent appraiser, 
and that the value or rate be certified by the grantee. This requirement 
will also be imposed by the grantee on subgrantees.



Sec. 1273.25  Program income.

    (a) General. Grantees are encouraged to earn income to defray 
program costs. Program income includes income from fees for services 
performed, from the use or rental of real or personal property acquired 
with grant funds, from the sale of commodities or items fabricated under 
a grant agreement, and from payments of principal and interest on loans 
made with grant funds. Except as otherwise provided in regulations of 
the Federal agency, program income does not include interest on grant 
funds, rebates, credits, discounts, refunds, etc. and interest earned on 
any of them.
    (b) Definition of program income. Program income means gross income 
received by the grantee or subgrantee directly generated by a grant 
supported activity, or earned only as a result of the grant agreement 
during the grant period. ``During the grant period'' is the time between 
the effective date of the award and the ending date of the award 
reflected in the final financial report.
    (c) Cost of generating program income. If authorized by Federal 
regulations or the grant agreement, costs incident to the generation of 
program income may be deducted from gross income to determine program 
income.
    (d) Governmental revenues. Taxes, special assessments, levies, 
fines, and other such revenues raised by a grantee or subgrantee are not 
program income unless the revenues are specifically identified in the 
grant agreement or Federal agency regulations as program income.
    (e) Royalties. Income from royalties and license fees for 
copyrighted material, patents, and inventions developed by a grantee or 
subgrantee is program income only if the revenues are specifically 
identified in the grant agreement or Federal agency regulations as 
program income. (See Sec. 1273.34).
    (f) Property. Proceeds from the sale of real property or equipment 
will be handled in accordance with the requirements of Sec. Sec. 
1273.31 and 1273.32.
    (g) Use of program income. Program income shall be deducted from 
outlays which may be both Federal and non-Federal as described below, 
unless the Federal agency regulations or the grant agreement specify 
another alternative (or a combination of the alternatives). In 
specifying alternatives, the Federal agency may distinguish between 
income earned by the grantee and income earned by subgrantees and 
between the sources, kinds, or amounts of income. When Federal agencies 
authorize the alternatives in paragraphs (g)(2) and (3) of this section, 
program

[[Page 449]]

income in excess of any limits stipulated shall also be deducted from 
outlays.
    (1) Deduction. Ordinarily program income shall be deducted from 
total allowable costs to determine the net allowable costs. Program 
income shall be used for current costs unless the Federal agency 
authorizes otherwise. Program income which the grantee did not 
anticipate at the time of the award shall be used to reduce the Federal 
agency and grantee contributions rather than to increase the funds 
committed to the project.
    (2) Addition. When authorized, program income may be added to the 
funds committed to the grant agreement by the Federal agency and the 
grantee. The program income shall be used for the purposes and under the 
conditions of the grant agreement.
    (3) Cost sharing or matching. When authorized, program income may be 
used to meet the cost sharing or matching requirement of the grant 
agreement. The amount of the Federal grant award remains the same.
    (h) Income after the award period. There are no Federal requirements 
governing the disposition of program income earned after the end of the 
award period (i.e., until the ending date of the final financial report, 
see paragraph (a) of this section), unless the terms of the agreement or 
the Federal agency regulations provide otherwise.



Sec. 1273.26  Non-Federal audit.

    (a) Basic rule. Grantees and subgrantees are responsible for 
obtaining audits in accordance with the Single Audit Act Amendments of 
1996 (31 U.S.C. 7501-7507) and revised OMB Circular A-133, ``Audits of 
States, Local Governments, and Non-Profit Organizations.'' The audits 
shall be made by an independent auditor in accordance with generally 
accepted government auditing standards covering financial audits.
    (b) Subgrantees. State or local governments, as those terms are 
defined for purposes of the Single Audit Act Amendments of 1996, that 
provide Federal awards to a subgrantee, which expends $300,000 or more 
(or other amount as specified by OMB) in Federal awards in a fiscal 
year, shall:
    (1) Determine whether State or local subgrantees have met the audit 
requirements of the Act and whether subgrantees covered by OMB Circular 
A-110, ``Uniform Administrative Requirements for Grants and Agreements 
with Institutions of Higher Education, Hospitals, and Other Non-Profit 
Organizations,'' have met the audit requirements of the Act. Commercial 
contractors (private for-profit and private and governmental 
organizations) providing goods and services to State and local 
governments are not required to have a single audit performed. State and 
local governments should use their own procedures to ensure that the 
contractor has complied with laws and regulations affecting the 
expenditure of Federal funds;
    (2) Determine whether the subgrantee spent Federal assistance funds 
provided in accordance with applicable laws and regulations. This may be 
accomplished by reviewing an audit of the subgrantee made in accordance 
with the Act, Circular A-110, or through other means (e.g., program 
reviews) if the subgrantee has not had such an audit;
    (3) Ensure that appropriate corrective action is taken within six 
months after receipt of the audit report in instance of noncompliance 
with Federal laws and regulations;
    (4) Consider whether subgrantee audits necessitate adjustment of the 
grantee's own records; and
    (5) Require each subgrantee to permit independent auditors to have 
access to the records and financial statements.
    (c) Auditor selection. In arranging for audit services, Sec. 
1273.36 shall be followed.

[60 FR 33694, June 29, 1995, as amended at 62 FR 45939, 45940, Aug. 29, 
1997]

                    Changes, Property, and Subawards



Sec. 1273.30  Changes.

    (a) General. Grantees and subgrantees are permitted to rebudget 
within the approved direct cost budget to meet unanticipated 
requirements and may make limited program changes to the approved 
project. However, unless waived by the awarding agency, certain types of 
post-award changes in budgets and projects shall require the prior

[[Page 450]]

written approval of the awarding agency.
    (b) Relation to cost principles. The applicable cost principles (see 
Sec. 1273.22) contain requirements for prior approval of certain types 
of costs. Except where waived, those requirements apply to all grants 
and subgrants even if paragraphs (c) through (f) of this section do not.
    (c) Budget changes--(1) Nonconstruction projects. Except as stated 
in other regulations or an award document, grantees or subgrantees shall 
obtain the prior approval of the awarding agency whenever any of the 
following changes is anticipated under a nonconstruction award:
    (i) Any revision which would result in the need for additional 
funding.
    (ii) Unless waived by the awarding agency, cumulative[dagger] 
transfers among direct cost categories, or, if applicable, among 
separately budgeted programs, projects, functions, or activities which 
exceed or are expected to exceed ten percent of the current total 
approved budget, whenever the awarding agency's share exceeds $100,000.
    (iii) Transfer of funds allotted for training allowances (i.e., from 
direct payments to trainees to other expense categories).
    (2) Construction projects. Grantees and subgrantees shall obtain 
prior written approval for any budget revision which would result in the 
need for additional funds.
    (3) Combined construction and nonconstruction projects. When a grant 
or subgrant provides funding for both construction and nonconstruction 
activities, the grantee or subgrantee must obtain prior written approval 
from the awarding agency before making any fund or budget transfer from 
nonconstruction to construction or vice versa.
    (d) Programmatic changes. Grantees or subgrantees must obtain the 
prior approval of the awarding agency whenever any of the following 
actions is anticipated:
    (1) Any revision of the scope or objectives of the project 
(regardless of whether there is an associated budget revision requiring 
prior approval).
    (2) Need to extend the period of availability of funds.
    (3) Changes in key persons in cases where specified in an 
application or a grant award. In research projects, a change in the 
project director or principal investigator shall always require approval 
unless waived by the awarding agency.
    (4) Under nonconstruction projects, contracting out, subgranting (if 
authorized by law) or otherwise obtaining the services of a third party 
to perform activities which are central to the purposes of the award. 
This approval requirement is in addition to the approval requirements of 
Sec. 1273.36 but does not apply to the procurement of equipment, 
supplies, and general support services.
    (e) Additional prior approval requirements. The awarding agency may 
not require prior approval for any budget revision which is not 
described in paragraph (c) of this section.
    (f) Requesting prior approval. (1) A request for prior approval of 
any budget revision will be in the same budget format the grantee used 
in its application and shall be accompanied by a narrative justification 
for the proposed revision.
    (2) A request for a prior approval under the applicable Federal cost 
principles (see Sec. 1273.22) may be made by letter.
    (3) A request by a subgrantee for prior approval will be addressed 
in writing to the grantee. The grantee will promptly review such request 
and shall approve or disapprove the request in writing. A grantee will 
not approve any budget or project revision which is inconsistent with 
the purpose or terms and conditions of the Federal grant to the grantee. 
If the revision, requested by the subgrantee would result in a change to 
the grantee's approved project which requires Federal prior approval, 
the grantee will obtain the Federal agency's approval before approving 
the subgrantee's request.



Sec. 1273.31  Real property.

    (a) Title. Subject to the obligations and conditions set forth in 
this section, title to real property acquired under a grant or subgrant 
will vest upon acquisition in the grantee or subgrantee respectively.

[[Page 451]]

    (b) Use. Except as otherwise provided by Federal statutes, real 
property will be used for the originally authorized purposes as long as 
needed for that purpose, and the grantee or subgrantee shall not dispose 
of or encumber its title or other interests.
    (c) Disposition. When real property is no longer needed for the 
originally authorized purpose, the grantee or subgrantee will request 
disposition instructions from the awarding agency. The instructions will 
provide for one of the following alternatives:
    (1) Retention of title. Retain after compensating the awarding 
agency. The amount paid to the awarding agency will be computed by 
applying the awarding agency's percentage of participation in the cost 
of the original purchase to the fair market value of the property. 
However, in those situations where a grantee or subgrantee is disposing 
of real property acquired with grant funds and acquiring replacement 
real property under the same program, the net proceeds from the 
disposition may be used as an offset to the cost of the replacement 
property.
    (2) Sale of property. Sell the property and compensate the awarding 
agency. The amount due to the awarding agency will be calculated by 
applying the awarding agency's percentage of participation in the cost 
of the original purchase to the proceeds of the sale after deduction of 
any actual and reasonable selling and fixing-up expenses. If the grant 
is still active, the net proceeds from sale may be offset against the 
original cost of the property. When a grantee or subgrantee is directed 
to sell property, sales procedures shall be followed that provide for 
competition to the extent practicable and result in the highest possible 
return.
    (3) Transfer of title. Transfer title to the awarding agency or to a 
third-party designated/approved by the awarding agency. The grantee or 
subgrantee shall be paid an amount calculated by applying the grantee or 
subgrantee's percentage of participation in the purchase of the real 
property to the current fair market value of the property.



Sec. 1273.32  Equipment.

    (a) Title. Subject to the obligations and conditions set forth in 
this section, title to equipment acquired under a grant or subgrant will 
vest upon acquisition in the grantee or subgrantee respectively.
    (b) States. A State will use, manage, and dispose of equipment 
acquired under a grant by the State in accordance with State laws and 
procedures. Other grantees and subgrantees will follow paragraphs (c) 
through (e) of this section.
    (c) Use. (1) Equipment shall be used by the grantee or subgrantee in 
the program or project for which it was acquired as long as needed, 
whether or not the project or program continues to be supported by 
Federal funds. When no longer needed for the original program or 
project, the equipment may be used in other activities currently or 
previously supported by a Federal agency.
    (2) The grantee or subgrantee shall also make equipment available 
for use on other projects or programs currently or previously supported 
by the Federal Government, providing such use will not interfere with 
the work on the projects or program for which it was originally 
acquired. First preference for other use shall be given to other 
programs or projects supported by the awarding agency. User fees should 
be considered if appropriate.
    (3) Notwithstanding the encouragement in Sec. 1273.25(a) to earn 
program income, the grantee or subgrantee must not use equipment 
acquired with grant funds to provide services for a fee to compete 
unfairly with private companies that provide equivalent services, unless 
specifically permitted or contemplated by Federal statute.
    (4) When acquiring replacement equipment, the grantee or subgrantee 
may use the equipment to be replaced as a trade-in or sell the property 
and use the proceeds to offset the cost of the replacement property, 
subject to the approval of the awarding agency.
    (d) Management requirements. Procedures for managing equipment 
(including replacement equipment), whether acquired in whole or in part 
with grant funds, until disposition takes place

[[Page 452]]

will, as a minimum, meet the following requirements:
    (1) Property records must be maintained that include a description 
of the property, a serial number or other identification number, the 
source of property, who holds title, the acquisition date, and cost of 
the property, percentage of Federal participation in the cost of the 
property, the location, use and condition of the property, and any 
ultimate disposition data including the date of disposal and sale price 
of the property.
    (2) A physical inventory of the property must be taken and the 
results reconciled with the property records at least once every two 
years.
    (3) A control system must be developed to ensure adequate safeguards 
to prevent loss, damage, or theft of the property. Any loss, damage or 
theft shall be investigated.
    (4) Adequate maintenance procedures must be developed to keep the 
property in good condition.
    (5) If the grantee or subgrantee is authorized or required to sell 
the property, proper sales procedures must be established to ensure the 
highest possible return.
    (e) Disposition. When original or replacement equipment acquired 
under a grant or subgrant is no longer needed for the original project 
or program or for other activities currently or previously supported by 
a Federal agency, disposition of the equipment will be made as follows:
    (1) Items of equipment with a current per-unit fair market value of 
less than $5,000 may be retained, or sold or otherwise disposed of with 
no further obligation to the awarding agency.
    (2) Items of equipment with a current per unit fair market value in 
excess of $5,000 may be retained or sold and the awarding agency shall 
have a right to an amount calculated by multiplying the current market 
value or proceeds from sale by the awarding agency's share of the 
equipment.
    (3) In cases where a grantee or subgrantee fails to take appropriate 
disposition actions, the awarding agency may direct the grantee or 
subgrantee to take excess and disposition actions.
    (f) Federal equipment. In the event a grantee or subgrantee is 
provided federally-owned equipment:
    (1) Title will remain vested in the Federal Government.
    (2) Grantees or subgrantees will manage the equipment in accordance 
with Federal agency rules and procedures, and submit an annual inventory 
listing.
    (3) When the equipment is no longer needed, the grantee or 
subgrantee will request disposition instructions from the Federal 
agency.
    (g) Right to transfer title. The Federal awarding agency may reserve 
the right to transfer title to the Federal Government or a third party 
named by the awarding agency when such a third party is otherwise 
eligible under existing statutes. Such transfers shall be subject to the 
following standards:
    (1) The property shall be identified in the grant or otherwise made 
known to the grantee in writing.
    (2) The Federal awarding agency shall issue disposition instruction 
within 120 calendar days after the end of the Federal support of the 
project for which it was acquired. If the Federal awarding agency fails 
to issue disposition instructions within the 120 calendar-day period the 
grantee shall follow Sec. 1273.32(e).
    (3) When title to equipment is transferred, the grantee shall be 
paid an amount calculated by applying the percentage of participation in 
the purchase to the current fair market value of the property.



Sec. 1273.33  Supplies.

    (a) Title. Title to supplies acquired under a grant or subgrant will 
vest, upon acquisition, in the grantee or subgrantee respectively.
    (b) Disposition. If there is a residual inventory of unused supplies 
exceeding $5,000 in total aggregate fair market value upon termination 
or completion of the award, and if the supplies are not needed for any 
other federally sponsored programs or projects, the grantee or 
subgrantee shall compensate the awarding agency for its share.

[[Page 453]]



Sec. 1273.34  Copyrights.

    The Federal awarding agency reserves a royalty-free, nonexclusive, 
and irrevocable license to reproduce, publish or otherwise use, and to 
authorize others to use, for Federal Government purposes:
    (a) The copyright in any work developed under a grant, subgrant, or 
contract under a grant or subgrant; and
    (b) Any rights of copyright to which a grantee, subgrantee or a 
contractor purchases ownership with grant support.



Sec. 1273.35  Subawards to debarred and suspended parties.

    Grantees and subgrantees must not make any award or permit any award 
(subgrant or contract) at any tier to any party which is debarred or 
suspended or is otherwise excluded from or ineligible for participation 
in Federal assistance programs under Executive Order 12549, ``Debarment 
and Suspension.''



Sec. 1273.36  Procurement.

    (a) States. When procuring property and services under a grant, a 
State will allow the same policies and procedures it uses for 
procurements from its non-Federal funds. The State will ensure that 
every purchase order or other contract includes any clauses required by 
Federal statutes and executive orders and their implementing 
regulations. Other grantees and subgrantees will follow paragraphs (b) 
through (i) in this section.
    (b) Procurement standards. (1) Grantees and subgrantees will use 
their own procurement procedures which reflect applicable State and 
local laws and regulations, provided that the procurements conform to 
applicable Federal law and the standards identified in this section.
    (2) Grantees and subgrantees will maintain a contract administration 
system which ensures that contractors perform in accordance with the 
terms, conditions, and specifications of their contracts or purchase 
orders.
    (3) Grantees an subgrantees will maintain a written code of 
standards of conduct governing the performance of their employees 
engaged in the award and administration of contracts. No employee, 
officer or agent of the grantee or subgrantee shall participate in 
selection, or in the award or administration of a contract supported by 
Federal funds if a conflict of interest, real or apparent, would be 
involved. Such a conflict would arise when:
    (i) The employee, officer or agent,
    (ii) Any member of his immediate family,
    (iii) His or her partner, or
    (iv) An organization which employs, or is about to employ, any of 
the above, has a financial or other interest in the firm selected for 
award. The grantee's or subgrantee's officers, employees or agents will 
neither solicit nor accept gratuities, favors or anything of monetary 
value from contractors, potential contractors, or parties to 
subagreements. Grantee and subgrantees may set minimum rules where the 
financial interest is not substantial or the gift is an unsolicited item 
or nominal intrinsic value. To the extent permitted by State or local 
law or regulations, such standards or conduct will provide for 
penalties, sanctions, or other disciplinary actions for violations of 
such standards by the grantee's and subgrantee's officers, employees, or 
agents, or by contractors or their agents. The awarding agency may in 
regulation provide additional prohibitions relative to real, apparent, 
or potential conflicts of interest.
    (4) Grantee and subgrantee procedures will provide for a review of 
proposed procurements to avoid purchase of unnecessary or duplicative 
items. Consideration should be given to consolidating or breaking out 
procurements to obtain a more economical purchase. Where appropriate, an 
analysis will be made of lease versus purchase alternatives, and any 
other appropriate analysis to determine the most economical approach.
    (5) To foster greater economy and efficiency, grantees and 
subgrantees are encouraged to enter into State and local 
intergovernmental agreements for procurement or use of common goods and 
services.
    (6) Grantees and subgrantees are encouraged to use Federal excess 
and surplus property in lieu of purchasing new equipment and property 
whenever such

[[Page 454]]

use is feasible and reduces project costs.
    (7) Grantees and subgrantees are encouraged to use value engineering 
clauses in contracts for construction projects of sufficient size to 
offer reasonable opportunities for cost reductions. Value engineering is 
a systematic and creative analysis of each contract item or task to 
ensure that its essential function is provided at the overall lower 
cost.
    (8) Grantees and subgrantees will make awards only to responsible 
contractors possessing the ability to perform successfully under the 
terms and conditions of a proposed procurement. Consideration will be 
given to such matters as contractor integrity, compliance with public 
policy, record of past performance, and financial and technical 
resources.
    (9) Grantees and subgrantees will maintain records sufficient to 
detail the significant history of a procurement. These records will 
include, but are not necessarily limited to the following: rationale for 
the method of procurement, selection of contract type, contractor 
selection or rejection, and the basis for the contract price.
    (10) Grantees and subgrantees will use time and material type 
contracts only--
    (i) After a determination that no other contract is suitable, and
    (ii) If the contract includes a ceiling price that the contractor 
exceeds at its own risk.
    (11) Grantees and subgrantees alone will be responsible, in 
accordance with good administrative practice and sound business 
judgment, for the settlement of all contractual and administrative 
issues arising out of procurements. These issues include, but are not 
limited to source evaluation, protests, disputes, and claims. These 
standards do not relieve the grantee or subgrantee of any contractual 
responsibilities under its contracts. Federal agencies will not 
substitute their judgment for that of the grantee or subgrantee unless 
the matter is primarily a Federal concern. Violations of law will be 
referred to the local, State, or Federal authority having proper 
jurisdiction.
    (12) Grantees and subgrantees will have protest procedures to handle 
and resolve disputes relating to their procurements and shall in all 
instances disclose information regarding the protest to the awarding 
agency. A protestor must exhaust all administrative remedies with the 
grantee and subgrantee before pursuing a protest with the Federal 
agency. Reviews of protests by the Federal agency will be limited to:
    (i) Violations of Federal law or regulations and the standards of 
this section (violations of State or local law will be under the 
jurisdiction of State or local authorities) and
    (ii) Violations of the grantee's or subgrantee's protest procedures 
for failure to review a complaint or protest. Protests received by the 
Federal agency other than those specified above will be referred to the 
grantee or subgrantee.
    (c) Competition. (1) All procurement transactions will be conducted 
in a manner providing full and open competition consistent with the 
standards of Sec. 1273.36. Some of the situations considered to be 
restrictive of competition include but are not limited to:
    (i) Placing unreasonable requirements on firms in order for them to 
qualify to do business,
    (ii) Requiring unnecessary experience and excessive bonding,
    (iii) Noncompetitive pricing practices between firms or between 
affiliated companies,
    (iv) Noncompetitive awards to consultants that are on retainer 
contracts,
    (v) Organizational conflicts of interest,
    (vi) Specifying only a ``brand name'' product instead of allowing 
``an equal'' product to be offered and describing the performance of 
other relevant requirements of the procurement, and
    (vii) Any arbitrary action in the procurement process.
    (2) Grantees and subgrantees will conduct procurements in a manner 
that prohibits the use of statutorily or administratively imposed in-
State or local geographical preferences in the evaluation of bids or 
proposals, except in those cases where applicable Federal statutes 
expressly mandate or encourage geographic preference. Nothing in this 
section preempts State licensing laws. When contracting for 
architectural and engineering (A/E) services,

[[Page 455]]

geographic location may be a selection criteria provided its application 
leaves an appropriate number of qualified firms, given the nature and 
size of the project, to compete for the contract.
    (3) Grantees will have written selection procedures for procurement 
transactions. These procedures will ensure that all solicitations:
    (i) Incorporate a clear and accurate description of the technical 
requirements for the material, product, or service to be procured. Such 
description shall not, in competitive procurements, contain features 
which unduly restrict competition. The description may include a 
statement of the qualitative nature of the material, product or service 
to be procured, and when necessary, shall set forth those minimum 
essential characteristics and standards to which it must conform if it 
is to satisfy its intended use. Detailed product specifications should 
be avoided if at all possible. When it is impractical or uneconomical to 
make a clear and accurate description of the technical requirements, a 
``brand name or equal'' description may be used as a means to define the 
performance or other salient requirements of a procurement. The specific 
features of the named brand which must be met by offerors shall be 
clearly stated; and
    (ii) Identify all requirements which the offerors must fulfill and 
all other factors to be used in evaluating bids or proposals.
    (4) Grantees and subgrantees will ensure that all prequalified lists 
of persons, firms, or products which are used in acquiring goods and 
services are current and include enough qualified sources to ensure 
maximum open and free competition. Also, grantees and subgrantees will 
not preclude potential bidders from qualifying during the solicitation 
period.
    (d) Methods of procurement to be followed--(1) Procurement by small 
purchase procedures. Small purchase procedures are those relatively 
simple and informal procurement methods for securing services, supplies, 
or other property that do not cost more than the simplified acquisition 
threshold fixed at 41 U.S.C. 403(11) (currently set at $100,000). If 
small purchase procurements are used, price or rate quotations shall be 
obtained from an adequate number of qualified sources.
    (2) Procurement by sealed bids (formal advertising). Bids are 
publicly solicited and a firm-fixed-price contract (lump sum or unit 
price) is awarded to the responsible bidder whose bid, conforming with 
all the material terms and conditions of the invitation for bids, is the 
lowest in price. The sealed bid method is the preferred method for 
procuring construction, if the conditions in Sec. 1273.36(d)(2)(i) 
apply.
    (i) In order for sealed bidding to be feasible, the following 
conditions should be present:
    (A) A complete, adequate, and realistic specification or purchase 
description is available;
    (B) Two or more responsible bidders are willing and able to compete 
effectively for the business; and
    (C) The procurement lends itself to a firm fixed price contract and 
the selection of the successful bidder can be made principally on the 
basis of price.
    (ii) If sealed bids are used, the following requirements apply:
    (A) The invitation for bids will be publicly advertised and bids 
shall be solicited from an adequate number of known suppliers, providing 
them sufficient time prior to the date set for opening the bids;
    (B) The invitation for bids, which will include any specifications 
and pertinent attachments, shall define the items or services in order 
for the bidder to properly respond;
    (C) All bids will be publicly opened at the time and place 
prescribed in the invitation for bids;
    (D) A firm fixed-price contract award will be made in writing to the 
lowest responsive and responsible bidder. Where specified in bidding 
documents, factors such as discounts, transportation cost, and life 
cycle costs shall be considered in determining which bid is lowest. 
Payment discounts will only be used to determine the low bid when prior 
experience indicates that such discounts are usually taken advantage of: 
and
    (E) Any or all bids may be rejected if there is a sound documented 
reason.
    (3) Procurement by competitive proposals. The technique of 
competitive proposals is normally conducted with

[[Page 456]]

more than one source submitting an offer, and either a fixed-price or 
cost-reimbursement type contract is awarded. It is generally used when 
conditions are not appropriate for the use of sealed bids. If this 
method is used, the following requirements apply:
    (i) Requests for proposals will be publicized and identify all 
evaluation factors and their relative importance. Any response to 
publicized requests for proposals shall be honored to the maximum extent 
practical;
    (ii) Proposals will be solicited from an adequate number of 
qualified sources;
    (iii) Grantees and subgrantees will have a method for conducting 
technical evaluations of the proposals received and for selecting 
awardees;
    (iv) Awards will be made to the responsible firm whose proposal is 
most advantageous to the program, with price and other factors 
considered; and
    (v) Grantees and subgrantees may use competitive proposal procedures 
for qualifications-based procurement of architectural/engineering (A/E) 
professional services whereby competitors' qualifications are evaluated 
and the most qualified competitor is selected, subject to negotiation of 
fair and reasonable compensation. The method, where price is not used as 
a selection factor, can only be used in procurement of A/E professional 
services. It cannot be used to purchase other types of services though 
A/E firms are a potential source to perform the proposed effort.
    (4) Procurement by noncompetitive proposals is procurement through 
solicitation of a proposal from only one source, or after solicitation 
of a number of sources, competition is determined inadequate.
    (i) Procurement by noncompetitive proposals may be used only when 
the award of a contract is infeasible under small purchase procedures, 
sealed bids or competitive proposals and one of the following 
circumstances applies:
    (A) The item is available only from a single source;
    (B) The public exigency or emergency for the requirement will not 
permit a delay resulting from competitive solicitation;
    (C) The awarding agency authorizes noncompetitive proposals; or
    (D) After solicitation of a number of sources, competition is 
determined inadequate.
    (ii) Cost analysis, i.e., verifying the proposed cost data, the 
projections of the data, and the evaluation of the specific elements of 
costs and profit, is required.
    (iii) Grantees and subgrantees may be required to submit the 
proposed procurement to the awarding agency for pre-award review in 
accordance with paragraph (g) of this section.
    (e) Contracting with small and minority firms, women's business 
enterprise and labor surplus area firms. (1) The grantee and subgrantee 
will take all necessary affirmative steps to assure that minority firms, 
women's business enterprises, and labor surplus area firms are used when 
possible.
    (2) Affirmative steps shall include:
    (i) Placing qualified small and minority businesses and women's 
business enterprises on solicitation lists;
    (ii) Assuring that small and minority businesses, and women's 
business enterprises are solicited whenever they are potential sources;
    (iii) Dividing total requirements, when economically feasible, into 
smaller tasks or quantities to permit maximum participation by small and 
minority business, and women's business enterprises;
    (iv) Establishing delivery schedules, where the requirement permits, 
which encourage participation by small and minority business, and 
women's business enterprises;
    (v) Using the services and assistance of the Small Business 
Administration, and the Minority Business Development Agency of the 
Department of Commerce; and
    (vi) Requiring the prime contractor, if subcontracts are to be let, 
to take the affirmative steps listed in paragraphs (e)(2)(i) through (v) 
of this section.
    (f) Contract cost and price. (1) Grantees and subgrantees must 
perform a cost or price analysis in connection with every procurement 
action including contract modifications. The method and degree of 
analysis is dependent on the facts surrounding the particular

[[Page 457]]

procurement situation, but as a starting point, grantees must make 
independent estimates before receiving bids or proposals. A cost 
analysis must be performed when the offeror is required to submit the 
elements of his estimated cost, e.g., under professional, consulting, 
and architectural engineering services contracts. A cost analysis will 
be necessary when adequate price competition is lacking, and for sole 
source procurements, including contract modifications or change orders, 
unless price reasonableness can be established on the basis of a catalog 
or market price of a commercial product sold in substantial quantities 
to the general public or based on prices set by law or regulation. A 
price analysis will be used in all other instances to determine the 
reasonableness of the proposed contract price.
    (2) Grantees and subgrantees will negotiate profit as a separate 
element of the price for each contract in which there is no price 
competition and in all cases where cost analysis is performed. To 
establish a fair and reasonable profit, consideration will be given to 
the complexity of the work to be performed, the risk borne by the 
contractor, the contractor's investment, the amount of subcontracting, 
the quality of its record of past performance, and industry profit rates 
in the surrounding geographical area for similar work.
    (3) Costs or prices based on estimated costs for contracts under 
grants will be allowable only to the extent that costs incurred or cost 
estimates included in negotiated prices are consistent with Federal cost 
principles (see Sec. 1273.22). Grantees may reference their own cost 
principles that comply with the applicable Federal cost principles.
    (4) The cost plus a percentage of cost and percentage of 
construction cost methods of contracting shall not be used.
    (g) Awarding agency review. (1) Grantees and subgrantees must make 
available, upon request of the awarding agency, technical specifications 
on proposed procurements where the awarding agency believes such review 
is needed to ensure that the item and/or service specified is the one 
being proposed for purchase. This review generally will take place prior 
to the time the specification is incorporated into a solicitation 
document. However, if the grantee or subgrantee desires to have the 
review accomplished after a solicitation has been developed, the 
awarding agency may still review the specifications, with such review 
usually limited to the technical aspects of the proposed purchase.
    (2) Grantees and subgrantees must on request make available for 
awarding agency pre-award review procurement documents, such as requests 
for proposals or invitations for bids, independent cost estimates, etc., 
when:
    (i) A grantee's or subgrantee's procurement procedures or operation 
fails to comply with the procurement standards in this section; or
    (ii) The procurement is expected to exceed the simplified 
acquisition threshold and is to be awarded without competition or only 
one bid or offer is received in response to a solicitation; or
    (iii) The procurement, which is expected to exceed the simplified 
acquisition threshold, specifies a ``brand name'' product; or
    (iv) The proposed award is more than the simplified acquisition 
threshold and is to be awarded to other than the apparent low bidder 
under a sealed bid procurement; or
    (v) A proposed contract modification changes the scope of a contract 
or increases the contract amount by more than the simplified acquisition 
threshold.
    (3) A grantee or subgrantee will be exempt from the pre-award review 
in paragraph (g)(2) of this section if the awarding agency determines 
that its procurement systems comply with the standards of this section.
    (i) A grantee or subgrantee may request that its procurement system 
be reviewed by the awarding agency to determine whether its system meets 
these standards in order for its system to be certified. Generally, 
these reviews shall occur where there is a continuous high-dollar 
funding, and third-party contracts are awarded on a regular basis;
    (ii) A grantee or subgrantee may self-certify its procurement 
system. Such self-certification shall not limit the

[[Page 458]]

awarding agency's right to survey the system. Under a self-certification 
procedure, awarding agencies may wish to rely on written assurances from 
the grantee or subgrantee that it is complying with these standards. A 
grantee or subgrantee will cite specific procedures, regulations, 
standards, etc., as being in compliance with these requirements and have 
its system available for review.
    (h) Bonding requirements. For construction or facility improvement 
contracts or subcontracts exceeding the simplified acquisition 
threshold, the awarding agency may accept the bonding policy and 
requirements of the grantee or subgrantee provided the awarding agency 
has made a determination that the awarding agency's interest is 
adequately protected. If such a determination has not been made, the 
minimum requirements shall be as follows:
    (1) A bid guarantee from each bidder equivalent to five percent of 
the bid price. The ``bid guarantee'' shall consist of a firm commitment 
such as a bid bond, certified check, or other negotiable instrument 
accompanying a bid as assurance that the bidder will, upon acceptance of 
his bid, execute such contractual documents as may be required within 
the time specified.
    (2) A performance bond on the part of the contractor for 100 percent 
of the contract price. A ``performance bond'' is one executed in 
connection with a contract to secure fulfillment of all the contractor's 
obligations under such contract.
    (3) A payment bond on the part of the contractor for 100 percent of 
the contract price. A ``payment bond'' is one executed in connection 
with a contract to assure payment as required by law of all persons 
supplying labor and material in the execution of the work provided for 
in the contract.
    (i) Contract provisions. A grantee's and subgrantee's contracts must 
contain provisions in paragraph (i) of this section. Federal agencies 
are permitted to require changes, remedies, changed conditions, access 
and records retention, suspension of work, and other clauses approved by 
the Office of Federal Procurement Policy.
    (1) Administrative, contractual, or legal remedies in instances 
where contractors violate or breach contract terms, and provide for such 
sanctions and penalties as may be appropriate. (Contracts more than the 
simplified acquisition threshold)
    (2) Termination for cause and for convenience by the grantee or 
subgrantee including the manner by which it will be effected and the 
basis for settlement. (All contracts in excess of $10,000)
    (3) Compliance with Executive Order 11246 of September 24, 1965, 
entitled ``Equal Employment Opportunity,'' as amended by Executive Order 
11375 of October 13, 1967, and as supplemented in Department of Labor 
regulations (41 CFR part 60). (All construction contracts awarded in 
excess of $10,000 by grantees and their contractors or subgrantees)
    (4) Compliance with the Copeland ``Anti-Kickback'' Act (18 U.S.C. 
874) as supplemented in Department of Labor regulations (29 CFR part 3). 
(All contracts and subgrants for construction or repair)
    (5) Compliance with the Davis-Bacon Act (40 U.S.C. 276a to 276a-7) 
as supplemented by Department of Labor regulations (29 CFR part 5). 
(Construction contracts in excess of $2000 awarded by grantees and 
subgrantees when required by Federal grant program legislation)
    (6) Compliance with Sections 103 and 107 of the Contract Work Hours 
and Safety Standards Act (40 U.S.C. 327-330) as supplemented by 
Department of Labor regulations (29 CFR part 5). (Construction contracts 
awarded by grantees and subgrantees in excess of $2000, and in excess of 
$2500 for other contracts which involve the employment of mechanics or 
laborers)
    (7) Notice of awarding agency requirements and regulations 
pertaining to reporting.
    (8) Notice of awarding agency requirements and regulations 
pertaining to patent rights with respect to any discovery or invention 
which arises or is developed in the course of or under such contract.
    (9) Awarding agency requirements and regulations pertaining to 
copyrights and rights in data.

[[Page 459]]

    (10) Access by the grantee, the subgrantee, the Federal grantor 
agency, the Comptroller General of the United States, or any of their 
duly authorized representatives to any books, documents, papers, and 
records of the contractor which are directly pertinent to that specific 
contract for the purpose of making audit, examination, excerpts, and 
transcriptions.
    (11) Retention of all required records for three years after 
grantees or subgrantees make final payments and all other pending 
matters are closed.
    (12) Compliance with all applicable standards, orders, or 
requirements issued under section 306 of the Clear Air Act (42 U.S.C. 
1857(h)), section 508 of the Clean Water Act (33 U.S.C. 1368), Executive 
Order 11738, and Environmental Protection Agency regulations (40 CFR 
part 15). (Contracts, subcontracts, and subgrants of amounts in excess 
of $100,000)
    (13) Mandatory standards and policies relating to energy efficiency 
which are contained in the state energy conservation plan issued in 
compliance with the Energy Policy and Conservation Act (Pub. L. 94-163, 
89 Stat. 871).



Sec. 1273.37  Subgrants.

    (a) States. States shall follow state law and procedures when 
awarding and administering subgrants (whether on a cost reimbursement or 
fixed amount basis) of financial assistance to local and Indian tribal 
governments. States shall:
    (1) Ensure that every subgrant includes any clauses required by 
Federal statute and executive orders and their implementing regulations;
    (2) Ensure that subgrantees are aware of requirements imposed upon 
them by Federal statute and regulation;
    (3) Ensure that a provision for compliance with Sec. 1273.42 is 
placed in every cost reimbursement subgrant; and
    (4) Conform any advances of grant funds to subgrantees substantially 
to the same standards of timing and amount that apply to cash advances 
by Federal agencies.
    (b) All other grantees. All other grantees shall follow the 
provisions of this part which are applicable to awarding agencies when 
awarding and administering subgrants (whether on a cost reimbursement or 
fixed amount basis) of financial assistance to local and Indian tribal 
governments. Grantees shall:
    (1) Ensure that every subgrant includes a provision for compliance 
with this part;
    (2) Ensure that every subgrant includes any clauses required by 
Federal statute and executive orders and their implementing regulations; 
and
    (3) Ensure that subgrantees are aware of requirements imposed upon 
them by Federal statutes and regulations.
    (c) Exceptions. by their own terms, certain provisions of this part 
do not apply to the award and administration of subgrants:
    (1) Section 1273.10;
    (2) Section 1273.11;
    (3) The letter-of-credit procedures specified in Treasury 
Regulations at 31 CFR part 205, cited in Sec. 1273.21; and
    (4) Section 1273.50.

              Reports, Records, Retention, and Enforcement



Sec. 1273.40  Monitoring and reporting program performance.

    (a) Monitoring by grantees. Grantees are responsible for managing 
the day-to-day operations of grant and subgrant supported activities. 
Grantees must monitor grant and subgrant activities to assure compliance 
with applicable Federal requirements and that performance goals are 
being achieved. Grantee monitoring must cover each program, function or 
activity.
    (b) Nonconstruction performance reports. The Federal agency may, if 
it decides that performance information available from subsequent 
applications contains sufficient information to meet its programmatic 
needs, require the grantee to submit a performance report only upon 
expiration or termination of grant support. Unless waived by the Federal 
agency this report will be due on the same date as the final Financial 
Status Report.
    (1) Grantees shall submit annual performance reports unless the 
awarding agency requires quarterly or semi-annual reports. However, 
performance reports will not be required more frequently than quarterly. 
Annual reports

[[Page 460]]

shall be due 90 days after the grant year, quarterly or semi-annual 
reports shall be due 30 days after the reporting period. The final 
performance report will be due 90 days after the expiration or 
termination of grant support. If a justified request is submitted by a 
performance report. Additionally, requirements for unnecessary 
performance reports may be waived by the Federal agency.
    (2) Performance reports will contain, for each grant, brief 
information on the following:
    (i) A comparison of actual accomplishments to the objectives 
established for the period. Where the output of the project can be 
quantified, a computation of the cost per unit of output may be required 
if that information will be useful.
    (ii) The reasons for slippage if established objectives were not 
met.
    (iii) Additional pertinent information including, when appropriate, 
analysis and explanation of cost overruns or high unit costs.
    (3) Grantees will not be required to submit more than the original 
and two copies of performance reports.
    (4) Grantees will adhere to the standards in this section in 
prescribing performance reporting requirements for subgrantees.
    (c) Construction performance reports. For the most part, on-site 
technical inspections and certified percentage-of-completion data are 
relied on heavily by Federal agencies to monitor progress under 
construction grants and subgrants. The Federal agency will require 
additional formal performance reports only when considered necessary, 
and never more frequently than quarterly.
    (d) Significant developments. Events may occur between the scheduled 
performance reporting dates which have significant impact upon the grant 
or subgrant supported activity. In such cases, the grantee must inform 
the Federal agency as soon as the following types of conditions become 
known:
    (1) Problems, delays, or adverse conditions which will materially 
impair the ability to meet the objective of the award. This disclosure 
must include a statement of the action taken, or contemplated, and any 
assistance needed to resolve the situation.
    (2) Favorable developments which enable meeting time schedules and 
objectives sooner or at less cost than anticipated or producing more 
beneficial results than originally planned.
    (e) Federal agencies may make site visits as warranted by program 
needs.
    (f) Waivers, extensions. (1) Federal agencies may waive any 
performance report required by this part if not needed.
    (2) The grantee may waive any performance report from a subgrantee 
when not needed. The grantee may extend the due date for any performance 
report from a subgrantee if the grantee will still be able to meet its 
performance reporting obligations to the Federal agency.



Sec. 1273.41  Financial reporting.

    (a) General. (1) Except as provided in paragraphs (a)(2) and (5) of 
this section, grantees will use only the forms specified in paragraphs 
(a) through (e) of this section, and such supplementary or other forms 
as may from time to time be authorized by OMB, for:
    (i) Submitting financial reports to Federal agencies, or
    (ii) Requesting advances or reimbursements when letters or credit 
are not used.
    (2) Grantees need not apply the forms prescribed in this section in 
dealing with their subgrantees. However, grantees shall not impose more 
burdensome requirements on subgrantees.
    (3) Grantees shall follow all applicable standard and supplemental 
Federal agency instructions approved by OMB to the extent required under 
the Paperwork Reduction Act of 1980 for use in connection with forms 
specified in paragraphs (b) through (e) of this section. Federal 
agencies may issue substantive supplementary instructions only with the 
approval of OMB. Federal agencies may shade out or instruct the grantee 
to disregard any line item that the Federal agency finds unnecessary for 
its decisionmaking purposes.
    (4) Grantees will not be required to submit more than the original 
and two copies of forms required under this part.

[[Page 461]]

    (5) Federal agencies may provide computer outputs to grantees to 
expedite or contribute to the accuracy of reporting. Federal agencies 
may accept the required information from grantees in machine usable 
format or computer printouts instead of prescribed forms.
    (6) Federal agencies may waive any report required by this section 
if not needed.
    (7) Federal agencies may extend the due date of any financial report 
upon receiving a justified request from a grantee.
    (b) Financial Status Report--(1) Form. Grantees will use Standard 
Form 269 or 269A, Financial Status Report, to report the status of funds 
for all nonconstruction grants and for construction grants when required 
in accordance with paragraph Sec. 1273.41(e)(2)(iii) of this section.
    (2) Accounting basis. Each grantee will report program outlays and 
program income on a cash or accrual basis as prescribed by the awarding 
agency. If the Federal agency requires accrual information and the 
grantee's accounting records are not normally kept on the accrual basis, 
the grantee shall not be required to convert its accounting system but 
shall develop such accrual information through and analysis of the 
documentation on hand.
    (3) Frequency. The Federal agency may prescribe the frequency of the 
report for each project or program. However, the report will not be 
required more frequently than quarterly. If the Federal agency does not 
specify the frequency of the report, it will be submitted annually. A 
final report will be required upon expiration or termination of grant 
support.
    (4) Due date. When reports are required on a quarterly or semiannual 
basis, they will be due 30 days after the reporting period. When 
required on an annual basis, they will be due 90 days after the grant 
year. Final reports will be due 90 days after the expiration or 
termination of grant support.
    (c) Federal Cash Transactions Report--(1) Form. (i) For grants paid 
by letter or credit, Treasury check advances or electronic transfer of 
funds, the grantee will submit the Standard Form 272, Federal Cash 
Transactions Report, and when necessary, its continuation sheet, 
Standard Form 272a, unless the terms of the award exempt the grantee 
from this requirement.
    (ii) These reports will be used by the Federal agency to monitor 
cash advanced to grantees and to obtain disbursement or outlay 
information for each grant from grantees. The format of the report may 
be adapted as appropriate when reporting is to be accomplished with the 
assistance of automatic data processing equipment provided that the 
information to be submitted is not changed in substance.
    (2) Forecasts of Federal cash requirements. Forecasts of Federal 
cash requirements may be required in the ``Remarks'' section of the 
report.
    (3) Cash in hands of subgrantees. When considered necessary and 
feasible by the Federal agency, grantees may be required to report the 
amount of cash advances in excess of three days' needs in the hands of 
their subgrantees or contractors and to provide short narrative 
explanations of actions taken by the grantee to reduce the excess 
balances.
    (4) Frequency and due date. Grantees must submit the report no later 
than 15 working days following the end of each quarter. However, where 
an advance either by letter of credit or electronic transfer of funds is 
authorized at an annualized rate of one million dollars or more, the 
Federal agency may require the report to be submitted within 15 working 
days following the end of each month.
    (d) Request for advance or reimbursement--(1) Advance payments. 
Requests for Treasury check advance payments will be submitted on 
Standard Form 270, Request for Advance or Reimbursement. (This form will 
not be used for drawdowns under a letter of credit, electronic funds 
transfer or when Treasury check advance payments are made to the grantee 
automatically on a predetermined basis.)
    (2) Reimbursements. Requests for reimbursement under nonconstruction 
grants will also be submitted on Standard Form 270. (For reimbursement 
requests under construction grants, see paragraph (e)(1) of this 
section.)
    (3) The frequency for submitting payment requests is treated in 
Sec. 1273.41(b)(3).

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    (e) Outlay report and request for reimbursement for construction 
programs. (1) Grants that support construction activities paid by 
reimbursement method.
    (i) Requests for reimbursement under construction grants will be 
submitted on Standard Form 271, Outlay Report and Request for 
Reimbursement for Construction Programs. Federal agencies may, however, 
prescribe the Request for Advance or Reimbursement form, specified in 
Sec. 1273.41(d), instead of this form.
    (ii) The frequency for submitting reimbursement requests is treated 
in Sec. 1273.41(b)(3).
    (2) Grants that support construction activities paid by letter of 
credit, electronic funds transfer or Treasury check advance.
    (i) When a construction grant is paid by letter of credit, 
electronic funds transfer or Treasury check advances, the grantee will 
report its outlays to the Federal agency using Standard Form 271, Outlay 
Report and Request for Reimbursement for Construction Programs. The 
Federal agency will provide any necessary special instruction. However, 
frequency and due date shall be governed by Sec. 1273.41(b)(3) and (4).
    (ii) When a construction grant is paid by Treasury check advances 
based on periodic requests from the grantee, the advances will be 
requested on the form specified in Sec. 1273.41(d).
    (iii) The Federal agency may substitute the Financial Status Report 
specified in Sec. 1273.41(b) for the Outlay Report and Request for 
Reimbursement for Construction Programs.
    (3) Accounting basis. The accounting basis for the Outlay Report and 
Request for Reimbursement for Construction Programs shall be governed by 
Sec. 1273.41(b)(2).



Sec. 1273.42  Retention and access requirements for records.

    (a) Applicability. (1) This section applies to all financial and 
programmatic records, supporting documents, statistical records, and 
other records of grantees or subgrantees which are:
    (i) Required to be maintained by the terms of this part, program 
regulations or the grant agreement, or
    (ii) Otherwise reasonably considered as pertinent to program 
regulations or the grant agreement.
    (2) This section does not apply to records maintained by contractors 
or subcontractors. For a requirement to place a provision concerning 
records in certain kinds of contracts, see Sec. 1273.36(i)(10).
    (b) Length of retention period. (1) Except as otherwise provided, 
records must be retained for three years from the starting date 
specified in paragraph (c) of this section.
    (2) If any litigation, claim, negotiation, audit or other action 
involving the records has been started before the expiration of the 3-
year period, the records must be retained until completion of the action 
and resolution of all issues which arise from it, or until the end of 
the regular 3-year period, whichever is later.
    (3) To avoid duplicate recordkeeping, awarding agencies may make 
special arrangements with grantees and subgrantees to retain any records 
which are continuously needed for joint use. The awarding agency will 
request transfer of records to its custody when it determines that the 
records possess long-term retention value. When the records are 
transferred to or maintained by the Federal agency, the 3-year retention 
requirement is not applicable to the grantee or subgrantee.
    (c) Starting date of retention period-- (1) General. When grant 
support is continued or renewed at annual or other intervals, the 
retention period for the records of each funding period starts on the 
day the grantee or subgrantee submits to the awarding agency its single 
or last expenditure report for that period. However, if grant support is 
continued or renewed quarterly, the retention period for each year's 
records starts on the day the grantee submits its expenditure report for 
the last quarter of the Federal fiscal year. In all other cases, the 
retention period starts on the day the grantee submits its final 
expenditure report. If an expenditure report has been waived, the 
retention period starts on the day the report would have been due.
    (2) Real property and equipment records. The retention period for 
real property and equipment records starts

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from the date of the disposition or replacement or transfer at the 
direction of the awarding agency.
    (3) Records for income transactions after grant or subgrant support. 
In some cases grantees must report income after the period of grant 
support. Where there is such a requirement, the retention period for the 
records pertaining to the earning of the income starts from the end of 
the grantee's fiscal year in which the income is earned.
    (4) Indirect cost rate proposals, cost allocations plans, etc. This 
paragraph applies to the following types of documents, and their 
supporting records: indirect cost rate computations or proposals, cost 
allocation plans, and any similar accounting computations of the rate at 
which a particular group of costs is chargeable (such as computer usage 
chargeback rates or composite fringe benefit rates).
    (i) If submitted for negotiation. If the proposal, plan, or other 
computation is required to be submitted to the Federal Government (or to 
the grantee) to form the basis for negotiation of the rate, then the 3-
year retention period for its supporting records starts from the date of 
such submission.
    (ii) If not submitted for negotiation. If the proposal, plan, or 
other computation is not required to be submitted to the Federal 
Government (or to the grantee) for negotiation purposes, then the 3-year 
retention period for the proposal plan, or computation and its 
supporting records starts from end of the fiscal year (or other 
accounting period) covered by the proposal, plan, or other computation.
    (d) Substitution of microfilm. Copies made by microfilming, 
photocopying, or similar methods may be substituted for the original 
records.
    (e) Access to records--(1) Records of grantees and subgrantees. The 
awarding agency and the Comptroller General of the United States, or any 
of their authorized representatives, shall have the right of access to 
any pertinent books, documents, papers, or other records of grantees and 
subgrantees which are pertinent to the grant, in order to make audits, 
examinations, excerpts, and transcripts.
    (2) Expiration of right of access. The rights of access in this 
section must not be limited to the required retention period but shall 
last as long as the records are retained.
    (f) Restrictions on public access. The Federal Freedom of 
Information Act (5 U.S.C. 552) does not apply to records unless required 
by Federal, State, or local law, grantees and subgrantees are not 
required to permit public access to their records.



Sec. 1273.43  Enforcement.

    (a) Remedies for noncompliance. If a grantee or subgrantee 
materially fails to comply with any term of an award, whether stated in 
a Federal statute or regulation, an assurance, in a State plan or 
application, a notice of award, or elsewhere, the award agency may take 
one or more of the following actions, as appropriate in the 
circumstances:
    (1) Temporarily withhold cash payments pending correction of the 
deficiency by the grantee or subgrantee or more severe enforcement 
action by the awarding agency.
    (2) Disallow (that is, deny both use of funds and matching credit 
for) all or part of the cost of the activity or action not in 
compliance,
    (3) Wholly or partly suspend or terminate the current award for the 
grantee's or subgrantee's program,
    (4) Withhold further awards for the program, or
    (5) Take other remedies that may be legally available.
    (b) Hearings, appeals. In taking an enforcement action, the awarding 
agency will provide the grantee or subgrantee an opportunity for such 
hearing, appeal, or other administrative proceeding to which the grantee 
or subgrantee is entitled under any statute or regulation applicable to 
the action involved.
    (c) Effects of suspension and termination. Costs of grantee or 
subgrantee resulting from obligations incurred by the grantee or 
subgrantee during a suspension or after termination of an award are not 
allowable unless the awarding agency expressly authorizes them in the 
notice of suspension or termination or subsequently. Other grantee or 
subgrantee costs during suspension or after termination which are

[[Page 464]]

necessary and not reasonably avoidable are allowable if:
    (1) The costs result from obligations which were properly incurred 
by the grantee or subgrantee before the effective date of suspension or 
termination, are not in anticipation of it, and, in the case of a 
termination, are noncancellable, and,
    (2) The costs would be allowable if the award were not suspended or 
expired normally at the end of the funding period which the termination 
takes effect.
    (d) Relationship to debarment and suspension. The enforcement 
remedies identified in this section, including suspension and 
termination, do not preclude grantee or subgrantee from being subject to 
``Debarment and Suspension'' under E.O. 12549 (see Sec. 1273.35).



Sec. 1273.44  Termination for convenience.

    Except as provided in Sec. 1273.43 awards may be terminated in 
whole or in part only as follows:
    (a) By the awarding agency with the consent of the grantee or 
subgrantee in which case the two parties shall agree upon the 
termination conditions, including the effective date and in the case of 
partial termination, the portion to be terminated, or
    (b) By the grantee or subgrantee upon written notification to the 
awarding agency, setting forth the reasons for such termination, the 
effective date, and in the case of partial termination, the portion to 
be terminated. However, if, in the case of a partial termination, the 
awarding agency determines that the remaining portion of the award will 
not accomplish the purposes for which the award was made, the awarding 
agency may terminate the award in its entirety under either Sec. 
1273.43 or paragraph (a) of this section.



                 Subpart D--After-the-Grant Requirements



Sec. 1273.50  Closeout.

    (a) General. The Federal agency will close out the award when it 
determines that all applicable administrative actions and all required 
work of the grant has been completed.
    (b) Reports. Within 90 days after the expiration or termination of 
the grant, the grantee must submit all financial, performance, and other 
reports required as a condition of the grant. Upon request by the 
grantee, Federal agencies may extend this timeframe. These may include 
but are not limited to:
    (1) Final performance or progress report.
    (2) Financial Status Report (SF 269) or Outlay Report and Request 
for Reimbursement for Construction Programs (SF-271) (as applicable).
    (3) Final request for payment (SF-270) (if applicable).
    (4) Invention disclosure (if applicable).
    (5) Federally-owned property report: In accordance with Sec. 
1273.32(f), a grantee must submit an inventory of all federally owned 
property (as distinct from property acquired with grant funds) for which 
it is accountable and request disposition instructions from the Federal 
agency of property no longer needed.
    (c) Cost adjustment. The Federal agency will, within 90 days after 
receipt of reports in paragraph (b) of this section, make upward or 
downward adjustments to the allowable costs.
    (d) Cash adjustments. (1) The Federal agency will make prompt 
payment to the grantee for allowable reimbursable costs.
    (2) The grantee must immediately refund to the Federal agency any 
balance of unobligated (unencumbered) cash advanced that is not 
authorized to be retained for use on other grants.



Sec. 1273.51  Later disallowances and adjustments.

    The closeout of a grant does not affect:
    (a) The Federal agency's right to disallow costs and recover funds 
on the basis of a later audit or other review;
    (b) The grantee's obligation to return any funds due as a result of 
later refunds, corrections, or other transactions;
    (c) Records retention as required in Sec. 1273.42;
    (d) Property management requirements in Sec. Sec. 1273.31 and 
1273.32; and
    (e) Audit requirements in Sec. 1273.26.

[[Page 465]]



Sec. 1273.52  Collection of amounts due.

    (a) Any funds paid to a grantee in excess of the amount to which the 
grantee is finally determined to be entitled under the terms of the 
award constitute a debt to the Federal Government. If not paid within a 
reasonable period after demand, the Federal agency may reduce the debt 
by:
    (1) Making an administrative offset against other requests for 
reimbursement,
    (2) Withholding advance payments otherwise due to the grantee, or
    (3) Other action permitted by law.
    (b) Except where otherwise provided by statutes or regulations, the 
Federal agency will charge interest on an overdue debt in accordance 
with the Federal Claims Collection Standards (4 CFR ch. II). The date 
from which interest is computed is not extended by litigation or the 
filing of any form of appeal.

Subpart E--Entitlements [Reserved]



PART 1274--COOPERATIVE AGREEMENTS WITH COMMERCIAL FIRMS--Table of Contents




                         Subpart 1274.1--General

Sec.
1274.101 Purpose.
1274.102 Scope.
1274.103 Definitions.
1274.104 Effect on other issuances.
1274.105 Review requirements.
1274.106 Deviations.
1274.107 Publication of requirements.

                 Subpart 1274.2--Pre-Award Requirements

1274.201 Purpose.
1274.202 Methods of award.
1274.203 Solicitations/Cooperative Agreement Notices.
1274.204 Costs and payments.
1274.205 Consortia as recipients.
1274.206 Metric Conversion Act.
1274.207 Extended agreements.
1274.208 Intellectual property.
1274.209 Evaluation and selection.
1274.210 Unsolicited proposals.
1274.211 Award procedures.
1274.212 Document format and numbering.
1274.213 Distribution of cooperative agreements.
1274.214 Inquiries and release of information.
1274.215 Federal and federally funded construction projects.

                     Subpart 1274.3--Administration

1274.301 Delegation of administration.
1274.302 Transfers, novations, and change of name agreements.

                        Subpart 1274.4--Property

1274.401 Government furnished property.
1274.402 Contractor acquired property.

                  Subpart 1274.5--Procurement Standards

1274.501 Purpose of procurement standards.
1274.502 Recipient responsibilities.
1274.503 Codes of conduct.
1274.504 Competition.
1274.505 Procurement procedures.
1274.506 Cost and price analysis.
1274.507 Procurement records.
1274.508 Contract administration.
1274.509 Contract provisions.
1274.510 Subcontracts.

                   Subpart 1274.6--Reports and Records

1274.601 Retention and access requirements for records.

                Subpart 1274.7--Suspension or Termination

1274.701 Suspension or termination.

         Subpart 1274.8--Post-Award/Administrative Requirements

1274.801 Adjustments to performance costs.
1274.802 Modifications.
1274.803 Closeout procedures.
1274.804 Subsequent adjustments and continuing responsibilities.

         Subpart 1274.9--Other Provisions and Special Conditions

1274.901 Other provisions and special conditions.
1274.902 Purpose.
1274.903 Responsibilities.
1274.904 Resource sharing requirements.
1274.905 Rights in data.
1274.906 Designation of new technology representative and patent 
          representative.
1274.907 Disputes.
1274.908 Milestone payments.
1274.909 Term of agreement.
1274.910 Authority.
1274.911 Patent rights.
1274.912 Patent rights--retention by the recipient (large business).
1274.913 Patent rights--retention by the recipient (small business).
1274.914 Requests for waiver of rights--large business.

[[Page 466]]

1274.915 Restrictions on sale or transfer of technology to foreign firms 
          or institutions.
1274.916 Liability and risk of loss.
1274.917 Additional funds.
1274.918 Incremental funding.
1274.919 Cost principles and accounting standards.
1274.920 Responsibilities of the NASA Technical Officer.
1274.921 Publications and reports: non-proprietary research results.
1274.922 Suspension or termination.
1274.923 Equipment and other property.
1274.924 Civil rights.
1274.925 Subcontracts.
1274.926 Clean Air-Water Pollution Control Acts.
1274.927 Debarment and suspension and Drug-Free Workplace.
1274.928 Foreign national employee investigative requirements.
1274.929 Restrictions on lobbying.
1274.930 Travel and transportation.
1274.931 Electronic funds transfer payment methods.
1274.932 Retention and examination of records.
1274.933 Summary of recipient reporting.
1274.934 Safety.
1274.935 Security classification requirements.
1274.936 Breach of safety or security.
1274.937 Security requirements for unclassified information technology 
          resources.
1274.938 Modifications.
1274.939 Application of Federal, State, and Local laws and regulations.
1274.940 Changes in recipient's membership.
1274.941 Insurance and indemnification.
1274.942 Export licenses.

               Appendix to Part 1274--Listing of Exhibits

Exhibit A to Part 1274--Contract provisions
Exhibit B to Part 1274--Reports

    Authority: 31 U.S.C. 6301 to 6308; 42 U.S.C. 2451 et seq.

    Source: 67 FR 45790, July 10, 2002, unless otherwise noted.



                         Subpart 1274.1--General



Sec. 1274.101  Purpose.

    The following policy guidelines establish uniform requirements for 
NASA cooperative agreements awarded to commercial firms.



Sec. 1274.102  Scope.

    (a) The business relationship between NASA and the recipient of a 
cooperative agreement differs from the relationship that exists between 
NASA and the recipient of a grant. Under the auspices of a grant, there 
is very little involvement and interaction between NASA and the grantee 
(other than a few administrative, funding, and reporting requirements, 
or in some cases matching of funds). Under a cooperative agreement, 
because of its substantial involvement, NASA assumes a higher degree of 
responsibility for the technical performance outcomes and associated 
financial costs of research activities. In some cooperative agreement 
projects, NASA may be required to indemnify the recipient (to the extent 
authorized by Congress). While the principal purpose of NASA's 
involvement and commitment of resources is to stimulate or support 
research activity, a major incentive for involvement by commercial firms 
(particularly where costs are shared) is the profit potential from 
marketable products expected to result from the cooperative agreement 
project.
    (b) Cooperative agreements (in areas or research relevant to NASA's 
mission) are ordinarily entered into with commercial firms to--
    (1) Support research and development;
    (2) Provide technology transfer from the Government to the 
recipient; or
    (3) Develop a capability among U.S. firms to potentially enhance 
U.S. competitiveness.
    (c) Projects that normally result in a cooperative agreement award 
to a commercial entity are projects that:
    (1) Are not intended for the direct benefit of NASA;
    (2) Are expected to benefit the general public;
    (3) Require substantial cost sharing; and
    (4) Have commercial applications and profit generating potential.
    (d) The principal purpose of cooperative agreements is to stimulate 
research to benefit the general public through the criteria stated in 
paragraphs (a) through (c) of this section. Since all research 
activities must be within NASA's authorized expenditure of 
appropriations, there may be instances where NASA can derive incidental 
use or benefits while preserving

[[Page 467]]

the principal purpose of the cooperative agreement. However, a careful 
balance must be established and maintained in the cooperative 
agreement's technical and business objectives, so that the principal 
purpose of the project serves to benefit the general public (i.e., 
technology will transfer from the Government to the public and the 
commercial partner expects a marketable product to result). If a 
cooperative agreement is awarded when the proper award instrument should 
have been a contract (because the primary purpose of the award is for 
the direct benefit of NASA), the cooperative agreement award can be 
protested. Thus, before pursuing any incidental benefits that 
materialize under a cooperative agreement, NASA Centers should ensure 
that the advice of legal counsel is obtained.



Sec. 1274.103  Definitions.

    Administrator. The Administrator or Deputy Administrator of NASA.
    Agreement officer. A Government employee (usually a Contracting 
Officer or Grant Officer) who has been delegated the authority to 
negotiate, award, or administer the cooperative agreement. Most often 
Contracting Officers are delegated this authority for the more complex 
cooperative agreement projects.
    Assistant Administrator for Procurement. The head of the Office of 
Procurement, NASA Headquarters (Code H).
    Cash contributions. The cash invested in a given program or project 
by the Federal Government and/or recipient. The recipient's cash 
contributions may include money contributed by third parties.
    Closeout. The process by which NASA determines that all applicable 
administrative actions and all required work of the award have been 
completed by the recipient and NASA.
    Commercial item. The definition in FAR 2.101 is applicable.
    Consortium. A consortium is a group of organizations that enter into 
an agreement to collaborate for the purposes of the cooperative 
agreement with NASA. The agreement to collaborate can take the form of a 
legal entity such as a partnership or joint venture but it is not 
necessary that such an entity be created. A consortium may be made up of 
firms that normally compete for commercial or Government business or may 
be made up of firms that perform complementary functions in a given 
industry.
    Cooperative agreement. As defined by 31 U.S.C. 6305, cooperative 
agreements are financial assistance instruments used to stimulate or 
support activities for authorized purposes and in which the Government 
participates substantially in the performance of the effort. This Part 
1274 covers only cooperative agreements with commercial firms where 
resource sharing is involved. Cooperative agreements with other types of 
organizations are covered by 14 CFR Part 1260.
    Cooperative agreement notice (CAN). Publication on Federal Business 
Opportunities (FedBizOpps) or NASA Acquisition Internet Service (NAIS) 
websites advertising the solicitation of competitive proposals for the 
award of a cooperative agreement.
    Cost sharing. Arrangement whereby the Government and the recipient 
share the funding requirements of a program or project at an agreed upon 
ratio or percentage (normally 50/50). Normally, the Government's payment 
of its share of the costs is contingent upon the accomplishment of 
tangible milestones (preferred method). Any payment arrangement that is 
based on a method other than the accomplishment of tangible milestones 
(e.g., a reimbursable arrangement where NASA pays a share of incurred 
costs, regardless of the accomplishment of tangible milestones) must be 
approved through the deviation process discussed in 1274.106.
    Date of completion. The date on which all work under an award is 
completed or the date on the award document, or any supplement or 
amendment thereto, on which NASA sponsorship ends.
    Days. Calendar days, unless otherwise indicated.
    General purpose equipment. Equipment which is usable for other than 
research, medical, scientific, or technical activities, whether or not 
special modifications are needed to make them suitable for a particular 
purpose. Examples of general purpose equipment include office equipment 
and furnishings, air

[[Page 468]]

conditioning equipment, reproduction and printing equipment, motor 
vehicles, and automatic data processing equipment.
    Government furnished equipment. Equipment in the possession of, or 
acquired directly by, the Government and subsequently delivered, or 
otherwise made available, to a recipient and equipment procured by the 
recipient with Government funds under a cooperative agreement. In most 
cases, Government furnished equipment will be counted as part of the 
Government's in-kind or non-cash contributions to the cooperative 
agreement for the purpose of determining the share ratio.
    Incremental funding. A method of funding a cooperative agreement 
where the funds initially allotted to the cooperative agreement are less 
than the award amount. Additional funding is added as described in Sec. 
1274.918.
    Non-cash or in-kind contributions. May be in the form of personnel 
resources (where cost accounting methods allow accumulation of such 
costs), real property, equipment, supplies and other expendable 
property, and the value of goods and services directly benefiting and 
specifically identifiable to the project or program. Costs incurred by 
NASA to provide the services of one of its support contractors to 
perform part of NASA's requirements under a cooperative agreement shall 
be included as part of NASA's cost share, and will be counted as an in-
kind contribution to the cooperative agreement.
    Recipient. An organization receiving financial assistance under a 
cooperative agreement to carry out a project or program. A recipient may 
be an individual firm, including sole proprietor, partnership, 
corporation, or a consortium of business entities.
    Resource contributions. The total value of resources provided by 
either party to the cooperative agreement including both cash and non-
cash contributions.
    Subcontracting dollar threshold. The dollar amount of the 
cooperative agreement subject to the small business subcontracting 
policies (includes small business, veteran-owned small business, 
service-disabled veteran-owned small business, historically 
underutilized small business, small disadvantaged business, women-owned 
business concerns, Historically Black Colleges and Universities, and 
minority educational institutions). For cooperative agreements, the 
dollar threshold to which the small business subcontracting policies 
apply, is established by the total amount of NASA's cash contributions.
    Suspension. An action by NASA or the recipient that temporarily 
discontinues efforts under an award, pending corrective action or 
pending a decision to terminate the award.
    Technical officer. The official of the cognizant NASA office who is 
responsible for monitoring the technical aspects of the work under a 
cooperative agreement. A Contracting Officer's Technical Representative 
may serve as a Technical Officer.
    Termination. The cancellation of a cooperative agreement in whole or 
in part, by either party at any time prior to the date of completion.



Sec. 1274.104  Effect on other issuances.

    For awards subject to this part, all administrative requirements of 
codified program regulations, program manuals, handbooks and other non-
regulatory materials which are inconsistent with the requirements of 
this part shall be superseded, except to the extent they are required by 
statute, or authorized in accordance with the deviations provision in 
Sec. 1274.106.



Sec. 1274.105  Review requirements.

    (a) Once the decision is made by a Headquarters program office or 
Center procurement personnel, to pursue the Cooperative Agreement Notice 
(CAN) process, for which the total NASA resources to be expended equal 
or exceed $10 million (cash plus non-cash contributions), a notification 
shall immediately be provided to the Assistant Administrator for 
Procurement (Code HS). The notification(s) shall be forwarded by the 
cognizant Headquarters program office or the Center procurement office 
(as applicable). For any CAN where NASA's cash contributions are 
expected to equal or exceed $10 million, Headquarters program office or 
Center procurement personnel shall also notify the Assistant 
Administrator for Small and Disadvantaged

[[Page 469]]

Business Utilization (Code K). All such notifications, as described in 
paragraph (b) of this section, shall evidence concurrence by the 
cognizant Center Procurement Officer. These review requirements also 
apply where an unsolicited proposal is received from a commercial firm 
(or from a team of recipients where one of more team members is a 
commercial firm), and the planned award document is a cooperative 
agreement.
    (b) The notification shall be accomplished by sending an electronic 
mail (e-mail) message to the following address at NASA Headquarters: 
[email protected]. The notification must include the following 
information, as a minimum--
    (1) Identification of the cognizant Center and program office;
    (2) Description of the proposed program for which proposals are to 
be solicited;
    (3) Rationale for decision to use a CAN rather than other types of 
solicitations;
    (4) The amount of Government funding to be available for award(s);
    (5) Estimate of the number of cooperative agreements to be awarded 
as a result of the CAN;
    (6) The percentage of cost-sharing to be required;
    (7) Tentative schedule for release of CAN and award of cooperative 
agreements;
    (8) If the term of the cooperative agreement is anticipated to 
exceed 3 years and/or if the Government cash contribution is expected to 
exceed $20M, address anticipated changes, if any, to the provisions (see 
Sec. 1274.207); and
    (9) If the cooperative agreement is for programs/projects that 
provide aerospace products or capabilities, (e.g., provision of space 
and aeronautics systems, flight and ground systems, technologies and 
operations), a statement that the requirements of NASA Policy Directive 
(NPD) 7120.4 and NASA Policy Guidance (NPG) 7120.5 have been met. This 
affirmative statement will include a specific reference to the signed 
Program Commitment Agreement.
    (c) Code HS will respond by e-mail message to the sender, with a 
copy of the message to the Procurement Officer and the Office of Small 
and Disadvantaged Business Utilization, within five (5) working days of 
receipt of this initial notification. The response will address the 
following:
    (1) Whether Code HS agrees or disagrees with the appropriateness for 
using a CAN for the effort described,
    (2) Whether Code HS will require review and approval of the CAN 
before its issuance,
    (3) Whether Code HS will require review and approval of the selected 
offeror's cost sharing arrangement (e.g., cost sharing percentage; type 
of contribution (cash, labor, etc.)).
    (4) Whether Code HS will require review and approval of the 
resulting cooperative agreement(s).
    (d) If a response from Code HS is not received within 5 working days 
of notification, the program office or Center may proceed with release 
of the CAN and award of the cooperative agreements as described.
    (e) Before issuance, each field-generated CAN shall be approved by 
the installation director or designee, with the concurrence of the 
procurement officer. Each Headquarters generated CAN shall be approved 
by the cognizant Program Associate Administrator or designee, with 
concurrence of the Headquarters Offices of General Counsel (Code GK), 
External Relations (Code I), Safety & Mission Assurance (Code Q), and 
Procurement (Code HS).



Sec. 1274.106  Deviations.

    (a) The Assistant Administrator for Procurement may grant exceptions 
for classes of, or individual cooperative agreements and deviations from 
the requirements of this Regulation when exceptions are not prohibited 
by statute.
    (b) A deviation is required for any of the following:
    (1) When a prescribed provision set forth in this regulation for use 
verbatim is modified or omitted.
    (2) When a provision is set forth in this regulation, but not 
prescribed for use verbatim, and the installation substitutes a 
provision which is inconsistent with the intent, principle, and 
substance of the prescribed provision.
    (3) When a NASA form or other form is prescribed by this regulation, 
and

[[Page 470]]

that form is altered or another form is used in its place.
    (4) When limitations, imposed by this regulation upon the use of a 
provision, form, procedure, or any other action, are not adhered to.
    (c) Requests for authority to deviate from this regulation will be 
forwarded to Headquarters, Program Operations Division (Code HS). Such 
requests, signed by the Procurement Officer, shall contain as a minimum-
-
    (1) A full description of the deviation and identification of the 
regulatory requirement from which a deviation is sought;
    (2) Detailed rationale for the request, including any pertinent 
background information;
    (3) The name of the recipient and identification of the cooperative 
agreement affected, including the dollar value.
    (4) A statement as to whether the deviation has been re quested 
previously, and, if so, circumstances of the previous request(s); and
    (5) A copy of legal counsel's concurrence or comments.



Sec. 1274.107  Publication of requirements.

    Cooperative agreements may result from recipient proposals submitted 
in response to the publication of a NASA Research Announcement (NRA), a 
Cooperative Agreement Notice (CAN), or other Broad Agency Announcement 
(BAA). BAA's, NRA's and CAN's are normally promulgated through publicly 
accessible Government-wide announcements such as those published under 
the Federal Business Opportunities (FedBizOpps), and/or the NASA 
Acquisition Internet Service (NAIS). Prior to publicizing the CAN, see 
Sec. 1274.105.



                 Subpart 1274.2--Pre-Award Requirements



Sec. 1274.201  Purpose.

    This subpart provides pre-award guidance, prescribes forms and 
instructions, and addresses other pre-award matters.



Sec. 1274.202  Methods of award.

    (a) Competitive agreements. Consistent with 31 U.S.C. 6301(3), NASA 
uses competitive procedures to award cooperative agreements whenever 
possible.
    (b) Awards using other than competitive procedures. Solicitations 
for award of a Cooperative Agreement shall not be issued to, nor 
negotiations conducted with a single source unless--
    (1) Use of such actions is documented in writing; and
    (2) Concurrence and approvals are obtained. The dollar thresholds 
will be determined by the total value of the resources committed to the 
Cooperative Agreement (cash and quantifiable in-kind contributions).



Sec. 1274.203  Solicitations/cooperative agreement notices.

    (a) Agreement officers should use every effort to issue draft pre-
award cooperative agreement information. Any draft documentation 
released for comment shall contain all factors/subfactors. Draft 
documents should be as close to the final product as possible. Draft 
Cooperative Agreement Notices (CAN's) or Cooperative Agreements (CA) 
should include terms and conditions, special requirements and expected 
cash and non-cash (in-kind) contributions.
    (1) Publication of draft documentation may serve to prevent 
unnecessary expenditure of resources and unproductive time that may be 
spent by NASA and potential recipients. Release of draft documentation 
also serves to assist NASA in refining program objectives and 
requirements, and maximizes the quality of research proposals submitted 
for formal evaluation and source selection.
    (2) During the information gathering process, comments may be 
invited from potential recipients on all aspects of the draft 
documentation, including the requirements, schedules, proposal 
instructions and evaluation approaches. Potential recipients should be 
specifically requested to identify unnecessary or inefficient 
requirements. Comments should also be requested on any perceived safety, 
occupational health, security (including information technology 
security), environmental, export control, and/or other

[[Page 471]]

programmatic risk issues associated with performance of the CA.
    (3) Agreement officers should include in the award schedule adequate 
time for the process to include industry review and comments, and NASA's 
evaluation and disposition of comments received.
    (4) When providing draft documents for comment, the draft CAN shall 
advise interested parties that any issued draft documentation shall not 
be considered as a solicitation for award, and that NASA is not 
requesting proposals in response to the draft publication.
    (5) Whenever feasible, agreement officers should include a summary 
of the disposition of significant comments when issuing the final CAN 
and/or CA.
    (b) The evaluation section of the CAN shall notify potential 
recipients of the relative importance of factors, and any subfactors or 
other criteria that will be evaluated during the selection process.
    (c) For its research projects, NASA may publish the expected project 
goals and objectives in terms of ``What'' the commercial recipient is 
expected to accomplish. The commercial recipient may be required to 
submit a proposed statement of work with its proposal stating ``How'' 
the recipient will accomplish the task(s). Depending on its importance 
to the success of the project, for some projects the recipient's 
statement of work may be included as an evaluation criterion for award. 
In these instances, the requirement for submission of the recipient's 
statement of work will be clearly identified as a subfactor or criterion 
that will be evaluated, and its relative weight or ranking in relation 
to other evaluation criteria shall be stated. In all cases, where the 
recipient submits a statement of work in response to NASA project 
objectives, NASA shall have final approval of the acceptability of the 
statement of work.
    (d) Where performance-based milestone payments are planned, the 
potential recipient should be encouraged to suggest in its statement of 
work (which incorporates the project goals and objectives), or elsewhere 
in its proposal, terms and/or performance events upon which milestone 
payments can be negotiated.
    (e) The CAN should provide a description and value for any 
quantifiable non-cash or in-kind Government resources (personnel, 
equipment, facilities, etc.), in addition to any cash funds that will be 
offered by the Government as part of its contributions to the 
cooperative agreement. As part of its proposal package, the recipient 
may also identify additional non-cash or in-kind resources it wishes 
NASA to contribute. The recipient shall verify the suitability of the 
requested resource(s) to the work to be performed under the cooperative 
agreement. Any additional verifiable and suitable non-cash or in-kind 
resources requested, shall be added to NASA's shared cost of performing 
the cooperative agreement, and may require increased cash or in-kind 
contributions from the recipient to meet its percentage of the cost 
share.
    (f) To protect the integrity of the competitive process, upon 
release of the formal CAN the agreement officer shall direct that all 
personnel associated with the source selection refrain from 
communicating with prospective recipients and to refer all inquiries to 
the agreement officer or other authorized representative. The 
notification to potential recipients may be sent in any format (e.g., 
letter or electronic) appropriate to the complexity of the acquisition. 
It is not intended that all communication with potential recipients be 
terminated. Agreement officers should continue to provide information as 
long as it does not create an unfair competitive advantage or reveal 
proprietary data.



Sec. 1274.204  Costs and payments.

    (a) Cost allowability. (1) Cooperative agreements awarded to 
commercial firms are subject to the cost accounting standards and 
principles of 48 CFR Chapter 99, as implemented by FAR Parts 30 and 31.
    (2) If the recipient is a consortium which includes non-commercial 
entities as members, cost allowability for those members will be 
determined as follows:
    (i) Allowability of costs incurred by state, local or federally-
recognized Indian tribal governments is determined in accordance with 
the provisions of

[[Page 472]]

OMB Circular A-87, ``Cost Principles for State and Local Governments.''
    (ii) The allowability of costs incurred by non-profit organizations 
is determined in accordance with the provisions of OMB Circular A-122, 
``Cost Principles for Non-Profit Organizations.''
    (iii) The allowability of costs incurred by institutions of higher 
education is determined in accordance with the provisions of OMB 
Circular A-21, ``Cost Principles for Educational Institutions.''
    (iv) The allowability of costs incurred by hospitals is determined 
in accordance with the provisions of Appendix E of 45 CFR part 74, 
``Principles for Determining Costs Applicable to Research and 
Development Under Grants and Contracts with Hospitals.''
    (3) A recipient's method for accounting for the expenditure of funds 
must be consistent with generally accepted accounting principles.
    (b) Cost sharing. (1) Given the mutually beneficial nature of, in 
particular, potential commercially marketable products expected to 
result from the research activities of the cooperative agreement, 
resource contributions are required from the recipient. The commercial 
recipient is expected to contribute at least 50 percent of the total 
resources necessary to accomplish the cooperative agreement effort. 
Recipient contributions may be cash, non-cash (in-kind) or both. 
Acceptable non-cash or in-kind resources include such items as 
equipment, facilities, labor, office space, etc. In determining the 
incentive to the recipient to share costs, agreement officers must 
consider a variety of factors. For example, while the future 
profitability of intellectual property may serve as an incentive for 
involvement of the commercial firm in the cooperative agreement, the 
actual or imputed value of such items as patent rights, data rights, 
trade secrets, etc., included in intellectual property is generally not 
considered a reliable source for computation of the recipient's 
contributions.
    (2) In most cases these costs are not readily quantifiable. Thus, 
although the value of intellectual property rights should be factored 
into the incentive for the recipient to share at least 50 percent of 
costs, intellectual property rights do not serve as quantifiable amounts 
to determine the equitable dollar amounts of costs to be shared.
    (3) As is expected from the commercial partner, the Government's 
cost share should reflect certain non-cash as well as cash contributions 
to the most practicable extent possible. Where quantifiable, NASA will 
include in the calculation of the Government's cost share, non-cash or 
in-kind contributions, which includes the value of equipment, personnel, 
and facilities. Costs incurred by NASA to provide the services of one or 
more support contractors to perform part of NASA's requirements under a 
cooperative agreement will be counted as part of NASA's in-kind 
contributions. This approach is also supported by the initiative to 
implement full cost accounting methods within the Federal Government.
    (4) When other Government agencies act as partners along with NASA 
(e.g., Department of Defense or Federal Aviation Administration), the 
resources contributed by any Government agency shall be counted as part 
of the Government's total cost share under the cooperative agreement.
    (5) For every cooperative agreement, there should be evidence of the 
recipient's strong commitment and self-interest in the success of the 
research project. A very strong indicator of a recipient's self-interest 
is the willingness to commit to a meaningful level of cost sharing 
(i.e., 50 percent). Before considering whether it is impracticable for 
the recipient to share at least 50% of the performance costs, agreement 
officers should also consider whether other factors exist that 
demonstrate the recipient's financial stake or self-interest in the 
success of the cooperative agreement.
    (6) In cases where a contribution of less than 50 percent is 
anticipated from the commercial recipient, approval of the Assistant 
Administrator for Procurement (Code HS) is required prior to award. The 
request for approval should address the evaluation factor in the 
solicitation and how the proposal accomplishes those objectives to such 
a degree that a share ratio of less than 50 percent is warranted.

[[Page 473]]

    (7) Once accepted for application to costs shared under the 
cooperative agreement, cash and in-kind contributions including 
Independent Research and Development (IR&D) costs, may not be included 
as contributions for any other federally assisted project or program.
    (c) Fixed funding. (1) Cooperative agreements are funded by NASA 
through the disbursement of agreed upon fixed payment amounts to the 
recipient. NASA makes disbursement of funds to the recipient as 
``Milestone payments'' discussed in paragraph (d) of this section. If 
the recipient achieves the final milestone, final payment is made, which 
completes NASA's financial responsibilities under the agreement.
    (2) Fixed payments on a cooperative agreement are made by NASA based 
on the accomplishment by the recipient of predetermined tangible 
milestones. Any arrangement where payments are made on a basis other 
than accomplished tangible milestones must be approved in accordance 
with the requirements of Sec. 1274.106 Deviations.
    (3) If the cooperative agreement is terminated prior to achievement 
of all milestones, NASA's funding is limited to milestone payments 
already made plus NASA's share of costs incurred to meet commitments of 
the recipient, which had in the judgment of NASA become firm prior to 
the effective date of termination. In no event, however, shall the 
amount of NASA's share of these additional costs exceed the amount of 
the next scheduled milestone payment.
    (d) Milestone obligations and payments. Agreement officers, 
technical officers, accounting and finance officials, and all other 
responsible NASA personnel shall ensure that funds for milestone 
payments are obligated, billed and expended in accordance with the 
guidance set forth by the NASA Financial Management Manual (FMM 9000).
    (1) There must always be sufficient funds obligated to cover the 
next milestone payment. In addition, funds must be made available (but 
not necessarily obligated) to cover all milestone payments expected to 
be made during the current fiscal year of performance.
    (2) Disbursement of funds to the recipient is based on the 
achievement of milestones or performance-related benchmarks. The 
milestone must represent the accomplishment of verifiable, significant 
event(s) and may not be based upon the mere passage of time or the 
performance of a particular level of effort. The Government technical 
officer must verify to and advise the agreement officer that each 
milestone has been achieved prior to authorizing the corresponding 
payment.
    (3) The amount of funds to be disbursed by NASA in recognition of 
the achievement of milestones (``milestone payments'') shall be 
established consistent with the ratio of resource sharing agreed upon 
under the cooperative agreement (see paragraph (e)(2) of this section). 
While the schedule for milestone achievement must reflect the project 
being undertaken, the frequency should not be greater than one payment 
per month. For many projects, scheduling milestones to be accomplished 
about every 60 to 90 days appears to be most workable. Partial or 
interim milestone payments may not be made.
    (4) The final milestone payment should be structured so that the 
associated payment is large enough to provide incentive to the recipient 
to complete its responsibilities under the cooperative agreement. 
Alternatively, funds may be reserved for disbursement after completion 
of the effort.
    (e) Incremental funding. Whenever the period of performance for the 
cooperative agreement crosses fiscal years, the agreement shall be 
incrementally funded using appropriations from different fiscal years. 
In other circumstances, incremental funding may be appropriate. The 
total amount of funds obligated during the course of a fiscal year must 
be sufficient to cover the Government's share of the costs anticipated 
to be incurred by the recipient during that fiscal year. NASA may allot 
funds to an agreement at various times during a fiscal year in 
anticipation of the occurrence of costs. However, there must always be 
sufficient funds obligated to cover all milestone payments expected to 
be made during the current fiscal year.

[[Page 474]]

    (f) Profit applicability. Recipients shall not be paid a profit 
under cooperative agreements. Profit may be paid by the recipient to 
subcontractors, if the subcontractor is not part of the offering team 
and the subcontract is an arms-length relationship. All entities that 
are involved in performing the research and development effort that is 
the purpose of the cooperative agreement shall be part of the 
recipient's consortium and not subcontractors.
    (g) Independent Research and Development (IR&D) costs. When 
determining the applicable dollar amounts or reasonableness of proposed 
IR&D costs to be included as part of the recipient's cost share, 
agreement officers should seek assistance from DCAA or the cognizant 
audit agency.
    (1) In accordance with FAR 31.205-18(e), IR&D costs may include 
costs contributed by contractors in performing cooperative research and 
development agreements or similar arrangements, entered into under 
sections 203(c)(5) and (6) of the National Aeronautics and Space Act of 
1958, as amended (42.U.S.C. 2473(c)(5) and (6)). IR&D costs incurred by 
a contractor pursuant to these types of cooperative agreements should be 
considered as allowable IR&D costs if the work performed would have been 
allowed as contractor IR&D had there been no cooperative arrangement.
    (2) IR&D costs (or an agreed upon portion of IR&D costs) incurred by 
the recipient's organization and deemed by NASA as the same type of 
research being undertaken by the cooperative agreement between NASA and 
the recipient may serve as part of the recipient's contribution of 
shared costs under the cooperative agreement. When considering the use 
of IR&D costs as part of the recipient's cost share, the IR&D costs 
offered by the recipient shall meet the requirements of FAR 31.205-18. 
Any IR&D costs incurred in a prior period, and offered as part of the 
recipient's cost share shall meet the criteria established by FAR 
31.205-18(d), Deferred IR&D Costs.



Sec. 1274.205  Consortia as recipients.

    (a) The use of consortia as recipients for cooperative agreements is 
encouraged. Such arrangements tend to bring a broader range of 
capabilities and resources to the cooperative agreement. In addition, 
consortium members can better share the projects financial costs (e.g., 
the 50 percent recipient's cost share or other costs of performance).
    (b) NASA enters into an agreement with only one entity (as 
identified by the consortium members). (Also see Sec. 1274.940.) The 
inclusion of non-profit or educational institutions, small businesses, 
or small disadvantaged businesses in the consortium could be 
particularly valuable in ensuring that the results of the consortium's 
activities are disseminated.
    (c) Key to the success of the cooperative agreement with a 
consortium is the consortium's Articles of Collaboration, which is a 
definitive description of the roles and responsibilities of the 
consortium's members. The Articles of Collaboration must designate a 
lead firm to represent the consortium and authority to sign on the 
consortium's behalf. It should also address to the extent appropriate--
    (1) Commitments of financial, personnel, facilities and other 
resources;
    (2) A detailed milestone chart of consortium activities;
    (3) Accounting requirements;
    (4) Subcontracting procedures;
    (5) Disputes;
    (6) Term of the agreement;
    (7) Insurance and liability issues;
    (8) Internal and external reporting requirements;
    (9) Management structure of the consortium;
    (10) Obligations of organizations withdrawing from the consortia;
    (11) Allocation of data and patent rights among the consortia 
members
    (12) Agreements, if any, to share existing technology and data;
    (13) The firm that is responsible for the completion of the 
consortium's responsibilities under the cooperative agreement and has 
the authority to commit the consortium and receive payments from NASA, 
and address employee policy or other personnel issues.
    (d) The consortium's charter or by-laws may be substituted for the 
Articles of Collaboration only if they are inclusive of all of the 
required information.

[[Page 475]]

    (e) An outline of the Articles of Collaboration should be required 
as part of the proposal and evaluated during the source selection 
process. Articles of Collaboration do not become part of the resulting 
cooperative agreement.



Sec. 1274.206  Metric Conversion Act.

    The Metric Conversion Act, as amended by the Omnibus Trade and 
Competitiveness Act (15 U.S.C. 205) declares that the metric system is 
the preferred measurement system for U.S. trade and commerce. NASA`s 
policy with respect to the metric measurement system is stated in NPD 
8010.2, Use of the Metric System of Measurement in NASA Programs.



Sec. 1274.207  Extended agreements.

    (a) Multiple year cooperative agreements are encouraged, but 
normally they should span no more than three years.
    (b) Cooperative agreements that will exceed $5 million and have a 
period of performance in excess of 5 years shall require the approval of 
the Assistant Administrator for Procurement prior to award. Requests for 
approval shall include a justification for exceeding 5 years and 
evidence that the extended years can be reasonably priced. Requests for 
approval are not required when the 5-year limitation is exceeded due to 
a no cost extension.
    (c) Cooperative agreement renewals provide for the continuation of 
research beyond the original scope, period of performance and funding 
levels; therefore, new proposals, certifications, and technical 
evaluations are required prior to the execution of a cooperative 
agreement renewal. Renewals will be awarded as new cooperative 
agreements. Continued performance within a period specified under a 
multiple year cooperative agreement provision does not constitute a 
renewal.
    (d) The provisions set forth in Sec. 1274.901 are generally 
considered appropriate for agreements not exceeding 3 years and/or a 
Government cash contribution not exceeding $20M. For cooperative 
agreements expected to be longer than 3 years and/or involve Government 
cash contributions exceeding $20M, consideration should be given to 
provisions which place additional restrictions on the recipient in terms 
of validating performance and accounting for funds expended.

[67 FR 45790, July 10, 2002, as amended at 68 FR 14535, Mar. 26, 2003]



Sec. 1274.208  Intellectual property.

    (a) Intellectual property rights. A cooperative agreement covers the 
disposition of rights to intellectual property between NASA and the 
recipient. If the recipient is a consortium or partnership, rights 
flowing between multiple organizations in a consortium must be 
negotiated separately and formally documented, preferably in the 
Articles of Collaboration.
    (b) Rights in patents. Patent rights clauses are required by statute 
and regulation. The clauses exist for recipients of the agreement 
whether they are--
    (1) Other than small business or nonprofit organizations (generally 
referred to as large businesses) or
    (2) Small businesses or nonprofit organizations.
    (c) Inventions. There are five situations in which inventions may 
arise under a cooperative agreement--
    (1) Recipient Inventions;
    (2) Subcontractor Inventions;
    (3) NASA Inventions;
    (4) NASA Support Contractor Inventions; and
    (5) Joint Inventions with Recipient.
    (d) Recipient inventions. (1) A recipient, if a large business, is 
subject to section 305 of the National Aeronautics and Space Act of 1958 
(42 U.S.C. 2457) relating to property rights in inventions. The term 
``invention'' includes any invention, discovery, improvement, or 
innovation. Title to an invention made under a cooperative agreement by 
a large business recipient initially vests with NASA. The recipient may 
request a waiver under the NASA Patent Waiver Regulations to obtain 
title to inventions made under the agreement. Such a request may be made 
in advance of the agreement (or 30 days thereafter) for all inventions 
made under the agreement. Alternatively, requests may be made on a case-
by-case basis any time an individual invention is made. Such waivers are 
liberally and expeditiously granted after review by NASA's Invention and 
Contribution Board and approval by

[[Page 476]]

NASA's General Counsel. When a waiver is granted, any inventions made in 
the performance of work under the agreement are subject to certain 
reporting, election and filing requirements, a royalty-free license to 
the Government, march-in rights, and certain other reservations.
    (2) A recipient, if a small business or nonprofit organization, may 
elect to retain title to its inventions. The term ``nonprofit 
organization'' is defined in 35 U.S.C. 201(i) and includes universities 
and other institutions of higher education or an organization of the 
type described in section 501(c)(3) of the Internal Revenue Code. The 
Government obtains an irrevocable, nonexclusive, royalty-free license.
    (e) Subcontractor inventions--(1) Large business. If a recipient 
enters into a subcontract (or similar arrangement) with a large business 
organization for experimental, developmental, research, design or 
engineering work in support of the agreement to be performed in the 
United States, its possessions, or Puerto Rico, section 305 of the Space 
Act applies. The clause applicable to large business organizations is to 
be used (suitably modified to identify the parties) in any subcontract. 
The subcontractor may request a waiver under the NASA Patent Waiver 
Regulations to obtain rights to inventions made under the subcontract 
just as a large business recipient can (see paragraph (d)(1) of this 
section). It is strongly recommended that a prospective large business 
subcontractor contact the NASA installation Patent Counsel or 
Intellectual Property Counsel to assure that the right procedures are 
followed. Just like the recipient, any inventions made in the 
performance of work under the agreement are subject to certain 
reporting, election and filing requirements, a royalty-free license to 
the Government, march-in rights, and certain other reservations.
    (2) Non-profit organization or small business. In the event the 
recipient enters into a subcontract (or similar arrangement) with a 
domestic nonprofit organization or a small business firm for 
experimental, developmental, or research work to be performed under the 
agreement, the requirements of 35 U.S.C. 200 et seq. regarding ``Patent 
Rights in Inventions Made With Federal Assistance,'' apply. The 
subcontractor has the first option to elect title to any inventions made 
in the performance of work under the agreement, subject to specific 
reporting, election and filing requirements, a royalty-free license to 
the Government, march-in rights, and certain other reservations that are 
specifically set forth.
    (3) Work outside the United States. If the recipient subcontracts 
for work to be done outside the United States, its possessions or Puerto 
Rico, the NASA installation Patent Counsel or Intellectual Property 
Counsel should be contacted for the proper patent rights clause to use 
and the procedures to follow.
    (4) Notwithstanding paragraphs (e)(1), (2), and (3) of this section, 
and in recognition of the recipient's substantial contribution, the 
recipient is authorized, subject to rights of NASA set forth elsewhere 
in the agreement, to:
    (i) Acquire by negotiation and mutual agreement rights to a 
subcontractor's subject inventions as the recipient may deem necessary; 
or
    (ii) If unable to reach agreement pursuant to paragraph (e)(4)(i) of 
this section, request that NASA invoke exceptional circumstances as 
necessary pursuant to 37 CFR 401.3(a)(2) if the prospective 
subcontractor is a small business firm or nonprofit organization, or for 
all other organizations, request that such rights for the recipient be 
included as an additional reservation in a waiver granted pursuant to 14 
CFR 1245.1. The exercise of this exception does not change the flow down 
of the applicable patent rights clause to subcontractors. Applicable 
laws and regulations require that title to inventions made under a 
subcontract must initially reside in either the subcontractor or NASA, 
not the recipient. This exception does not change that. The exception 
does authorize the recipient to negotiate and reach mutual agreement 
with the subcontractor for the grant-back of rights. Such grant-back 
could be an option for an exclusive license or an assignment, depending 
on the circumstances.
    (f) NASA inventions. NASA will use reasonable efforts to report 
inventions

[[Page 477]]

made by its employees as a consequence of, or which bear a direct 
relation to, the performance of specified NASA activities under an 
agreement. Upon timely request, NASA will use its best efforts to a 
grant recipient first option to acquire either an exclusive or 
partially-exclusive, revocable, royalty-bearing license, on terms to be 
negotiated, for any patent applications and patents covering such 
inventions. This exclusive or partially-exclusive license to the 
recipient will be subject to the retention of rights by or on behalf of 
the Government for Government purposes.
    (g) NASA support contractor inventions. It is preferred that NASA 
support contractors be excluded from performing any of NASA's 
responsibilities under an agreement since the rights obtained by a NASA 
support contractor could work against the rights needed by the 
recipient. In the event NASA support contractors are tasked by NASA to 
work under the agreement and inventions are made by support contractor 
employees, the support contractor will normally retain title to its 
employee inventions in accordance with 35 U.S.C. 202, 14 CFR part 1245, 
and E.O. 12591. In the event the recipient decides not to pursue right 
to title in any such invention and NASA obtains title to such 
inventions, upon timely request, NASA will use its best efforts to grant 
the recipient first option to acquire either an exclusive or partially 
exclusive, revocable, royalty-bearing license, upon terms to be 
negotiated, for any patent applications and patents covering such 
inventions. This exclusive or partially-exclusive license to the 
recipient will be subject to the retention of rights by or on behalf of 
the Government for Government purposes.
    (h) Joint inventions. (1) NASA and the recipient agree to use 
reasonable efforts to identify and report to each other any inventions 
made jointly between NASA employees (or employees of NASA support 
contractors) and employees of Recipient. For large businesses, the 
Associate General Counsel (Intellectual Property) may agree that the 
United States will refrain, for a specified period, from exercising its 
undivided interest in a manner inconsistent with the recipient's 
commercial interest. For small business firms and nonprofit 
organizations, the Associate General Counsel (Intellectual Property) may 
agree to assign or transfer whatever rights NASA may acquire in a 
subject invention from its employee to the recipient as authorized by 35 
U.S.C. 202(e). The agreement officer negotiating the agreement with 
small business firms and nonprofit organizations can agree, up front, 
that NASA will assign whatever rights it may acquire in a subject 
invention from its employee to the small business firm or nonprofit 
organization. Requests under this paragraph shall be made through the 
Center Patent Counsel.
    (2) NASA support contractors may be joint inventors. If a NASA 
support contractor employee is a joint inventor with a NASA employee, 
the same provisions apply as those for NASA support contractor 
inventions (see paragraph (g) of this section). The NASA support 
contractor will retain or obtain nonexclusive licenses to those 
inventions in which NASA obtains title. If a NASA support contractor 
employee is a joint inventor with a recipient employee, the NASA support 
contractor and recipient will become joint owners of those inventions in 
which they have elected to retain title or requested and have been 
granted waiver of title. Where the NASA support contractor has not 
elected to retain title or has not been granted waiver of title, NASA 
will jointly own the invention with the Recipient.
    (i) Licenses to recipient(s). (1) Any exclusive or partially 
exclusive commercial licenses are to be royalty-bearing consistent with 
Government-wide policy in licensing its inventions. It also provides an 
opportunity for royalty-sharing with the employee-inventor, consistent 
with Government-wide policy under the Federal Technology Transfer Act.
    (2) Upon application in compliance with 37 CFR Part 404--Licensing 
of Government Owned Inventions, all recipients shall be granted a 
revocable, nonexclusive, royalty-free license in each patent application 
filed in any country on a subject invention and any

[[Page 478]]

resulting patent in which the Government obtains title. Because 
cooperative agreements are cost sharing cooperative arrangements with a 
purpose of benefiting the public by improving the competitiveness of the 
recipient and the Government receives an irrevocable, nonexclusive, 
royalty-free license in each recipient subject invention, it is only 
equitable that the recipient receive, at a minimum, a revocable, 
nonexclusive, royalty-free license in NASA inventions and NASA 
contractor inventions where NASA has acquired title.
    (3) Once a recipient has exercised its option to apply for an 
exclusive or partially exclusive license, a notice, identifying the 
invention and the recipient, is published in the Federal Register, 
providing the public opportunity for filing written objections for 60 
days.
    (j) Preference for United States manufacture. Despite any other 
provision, the recipient agrees that any products embodying subject 
inventions or produced through the use of subject inventions shall be 
manufactured substantially in the United States. ``Manufactured 
substantially in the United States'' means the product must have over 50 
percent of its components manufactured in the United States. This 
requirement is met if the cost to the recipient of the components mined, 
produced, or manufactured in the United States exceeds 50 percent of the 
cost of all components required to make the product. In making this 
determination, only the product and its components shall be considered. 
The cost of each component includes transportation costs to the place of 
incorporation into the product and any applicable duty whether or not a 
duty-free entry certificate is issued. Components of foreign origin of 
the same class or kind for which determinations have been made in 
accordance with FAR 25.101(a) are treated as domestic. Scrap generated, 
collected, and prepared for processing in the United States is 
considered domestic. The intent of this provision is to support 
manufacturing jobs in the United States regardless of the status of the 
recipient as a domestic or foreign controlled company. However, in 
individual cases, the requirement to manufacture substantially in the 
United States, may be waived by the Assistant Administrator for 
Procurement (Code HS) upon a showing by the recipient that under the 
circumstances domestic manufacture is not commercially feasible.
    (k) Space Act agreements. Invention and patent rights in cooperative 
agreements must comply with statutory and regulatory provisions. Where 
circumstances permit, a Space Act Agreement is available as an 
alternative instrument which can be more flexible in the area of 
invention and patent rights.
    (l) Data rights. Data rights provisions can and should be tailored 
to best achieve the needs and objectives of the respective parties 
concerned.
    (1) The data rights clause at Sec. 1274.905 assumes a substantially 
equal cost sharing relationship where collaborative research, 
experimental, developmental, engineering, demonstration, or design 
activities are to be carried out, such that it is likely that 
``proprietary'' information will be developed and/or exchanged under the 
agreement. If cost sharing is unequal or no extensive research, 
experimental, developmental, engineering, demonstration, or design 
activities are likely, a different set of clauses may be appropriate.
    (2) The primary question that must be answered when developing data 
clauses is what does each party need or intend to do with the data 
developed under the agreement. Accordingly, the data rights clauses may 
be tailored to fit the circumstances. Where conflicting goals of the 
parties result in incompatible data provisions, agreement officers for 
the Government must recognize that private companies entering into 
cooperative agreements bring resources to that relationship and must be 
allowed to reap an appropriate benefit for the expenditure of those 
resources. However, since serving a public purpose is a major objective 
of a cooperative agreement, care must be exercised to ensure the 
recipient is not established as a long term sole source supplier of an 
item or service and is not in a position to take unfair advantage of the 
results of the cooperative agreement. Therefore, a reasonable time 
period (i.e., depending on the technology, two to five years after 
production of the data) may be established

[[Page 479]]

after which the data first produced by the recipient in the performance 
of the agreement will be made public.
    (3) Data can be generated from different sources and can have 
various restrictions placed on its dissemination. Recipient data 
furnished to NASA can exist prior to, or be produced outside of, the 
agreement or be produced under the agreement. NASA can also produce data 
in carrying out its responsibilities under the agreement. Each of these 
areas must be covered.
    (4) For data, including software, first produced by the recipient 
under the agreement, the recipient may assert copyright. Data exchanged 
with a notice showing that the data is protected by copyright must 
include appropriate licenses in order for NASA to use the data as 
needed.
    (5) Recognizing that the dissemination of the results of NASA's 
activities is a primary objective of a cooperative agreement, the 
parties should specifically delineate what results will be published and 
under what conditions. This should be set forth in the clause of the 
cooperative agreement entitled ``Publication and Reports: Non-
Proprietary Research Results.'' Any such agreement on the publication of 
results should be stated to take precedence over any other clause in the 
cooperative agreement.
    (6) Section 1274.905(b)(3) requires the recipient to provide NASA a 
government purpose license for data first produced by the Recipient that 
constitutes trade secrets or confidential business or financial 
information. NASA and the recipient shall determine the scope of this 
license at the time of award of the cooperative agreement. In addition 
to the purposes given as examples in Sec. 1274.905(b)(3), the license 
should provide NASA the right to use this data under a separate 
cooperative agreement or contract issued to a party other than the 
recipient for the purpose of continuing the project in the event the 
cooperative agreement is terminated by either party.
    (7) In accordance with section 303(b) of the Space Act, any data 
first produced by NASA under the agreement which embodies trade secrets 
or financial information that would be privileged or confidential if it 
had been obtained from a private participant, will be marked with an 
appropriate legend and maintained in confidence for an agreed to period 
of up to five years (the maximum allowed by law). This does not apply to 
data other than that for which there has been agreement regarding 
publication or distribution. The period of time during which data first 
produced by NASA is maintained in confidence should be consistent with 
the period of time determined in accordance with paragraph (h)(2) of 
this section, before which data first produced by the recipient will be 
made public. Also, NASA itself may use the marked data (under suitable 
protective conditions) for agreed-to purposes.



Sec. 1274.209  Evaluation and selection.

    (a) Factor development. The agreement officer, along with the NASA 
evaluation team has discretion to determine the relevant evaluation 
criteria based upon the project requirements, and the goals and 
objectives of the cooperative agreement.
    (b) Communications during non-competitive awards. For cooperative 
agreements awarded non-competitively (see Sec. 1274.202(b)), there are 
no restrictions on communications between NASA and the recipient. In 
addition, there is no requirement for the development and publication of 
formal evaluation or source selection criteria.
    (c) Communications during competitive awards. As discussed in Sec. 
1274.203(c), when a competitive source selection process will be 
followed to select the recipient, an appropriate level of care shall be 
taken by NASA personnel in order to protect the integrity of the source 
selection process. Therefore, upon release of the formal cooperative 
agreement notice (CAN), the agreement officer shall direct all 
procurement personnel associated with the source selection to refrain 
from communicating with prospective recipients and that all inquiries be 
referred to the agreement officer, or other authorized representative.
    (d) Selection factors and subfactors. (1) At a minimum, the 
selection process for the competitive award of cooperative agreements to 
commercial entities shall include evaluation of potential

[[Page 480]]

recipients' proposals for merit and relevance to NASA's mission 
requirements through their responses to the publication of NASA 
evaluation factors. The evaluation factors should include technical and 
management capabilities (mission suitability), past performance, and 
proposed costs (including proposed cost share).
    (2) For programs that may involve potentially hazardous operations 
related to flight, and/or mission critical ground systems, NASA's 
selection factors and subfactors shall provide for evaluation of the 
recipient's proposed approach to managing risk (e.g., technology being 
applied or developed, technical complexity, performance specifications 
and tolerances, delivery schedule, etc.).
    (3) As part of the evaluation process, the factors, subfactors, or 
other criteria should be tailored to properly address the requirements 
of the cooperative agreement.
    (e) Other factors and subfactors. Other factors and subfactors may 
include--
    (1) The composition or appropriateness of the business relationship 
of proposed team members or consortium, articles of collaboration, 
participation of an appropriate mix of small business, veteran-owned 
small business, service-disabled veteran-owned small business, 
historically underutilized small business, small disadvantaged business, 
and women-owned business concerns, as well as non-profits and 
educational institutions, including historically black colleges and 
universities and minority institutions).
    (2) Other considerations may include enhancing U.S. competitiveness, 
developing a capability among U.S. firms, identification of potential 
markets, appropriateness of business risks.
    (f) Proposal evaluation. The proposals shall be evaluated in 
accordance with the criteria published in the CAN. Proposals selected 
for award will be supported by documentation as described in 
1274.211(b). When evaluation results in a proposal not being selected, 
the proposer will be notified in accordance with the CAN.
    (g) Technical evaluation. The technical evaluation of proposals may 
include peer reviews. Because the business sense of a cooperative 
agreement proposal is critical to its success, NASA may reserve the 
right to utilize appropriate outside evaluators to assist in the 
evaluation of such proposal elements as the business base projections, 
the market for proposed products, and/or the impact of anticipated 
product price reductions.
    (h) Cost/price evaluation. (1) Prior to award of a cooperative 
agreement, agreement officers shall ensure that proposed costs are 
accurate and reasonable. In order to do so, cost and pricing data may be 
required. The level of cost and pricing data to be requested shall be 
commensurate with the analysis necessary to reach agreement on overall 
proposed project costs. The evaluation of costs shall lead to the 
determination and verification of total project costs to be shared by 
NASA and the recipient, as well as establishment of NASA's milestone 
payment schedule based on its 50 percent cost share. The guidance at FAR 
15.4 and NFS 1815.4 can assist in determining whether cost and pricing 
data are necessary and the level of analysis required. While competition 
may be present (i.e., more than one proposal is received), in most cases 
companies are proposing competing technologies and varying approaches 
that reflect very different methods (and accompanying costs) to satisfy 
NASA's project objectives. Consequently, this type of competitive 
environment is very different from an environment where competitive 
proposals are submitted in response to a request for proposals leading 
to award of a contract for relatively well-defined program or project 
requirements.
    (2) During evaluation of the cost proposal, the agreement officer, 
along with other NASA evaluation team members and/or pricing support 
personnel, shall determine the reasonableness of the overall proposed 
project costs, including verifying the value of the recipient's proposed 
non-cash and in-kind contributions. Commitments should be obtained and 
verified to the extent practicable from the recipient or any associated 
team members, from which proposed contributions will be made.
    (3) If the recipient's proposed contributions include application of 
IR&D costs, see Sec. 1274.204(g).

[[Page 481]]

    (i) Awards to foreign governments and firms. (1) An award may not be 
made to a foreign government. However, if selected as the best available 
source, an award may be made to a foreign firm. If a proposal is 
selected from a foreign firm sponsored by their respective government 
agency, or from entities considered quasi-governmental, approval must be 
obtained from Headquarters, Program Operations Division (Code HS). Such 
requests must include detailed rationale for the selection, to include 
the funding source of the foreign participant. The approval of the 
Assistant Administrator for Procurement is required to exclude foreign 
firms from submitting proposals. Award to a foreign firm shall be on a 
no-exchange-of-funds basis (see NPD 1360.2).
    (2) The Office of External Affairs (Code I), shall be notified prior 
to any announcement of intent to award to a foreign firm. Additionally, 
pursuant to section 126 of Pub. L. 106-391, as part of the evaluation of 
costs and benefits of entering into an obligation to conduct a space 
mission in which a foreign entity will participate as a supplier of the 
spacecraft, spacecraft system, or launch system, NASA shall solicit 
comment on the potential impact of such participation, through notice 
published in the FedBizOpps or NAIS.
    (j) Safe-guarding proposals. Competitive proposal information shall 
be protected in accordance with FAR 15.207, Handling proposals and 
information. Unsolicited proposals shall be protected in accordance with 
FAR 15.608, Prohibitions, and FAR 15.609, Limited use of data.
    (1) Evaluation team members, the source selection authority, and 
agreement officers are responsible for protecting sensitive information 
on the award of a grant or cooperative agreement and for determining who 
is authorized to receive such information. Sensitive information 
includes: information contained in proposals; information prepared for 
NASA's evaluation of proposals; the rankings of proposals for an award; 
reports and evaluations of source selection panels, boards, or advisory 
councils; and other information deemed sensitive by the source selection 
authority or by the agreement officer.
    (2) No sensitive information shall be disclosed to persons not on 
the evaluation team or evaluation panel, unless the Selecting Official 
or the agreement officer has approved disclosure based upon an 
unequivocal ``need-to-know'' and the individual receiving the 
information has signed a Non-Disclosure Certificate. All attendees at 
formal source selection presentations and briefings shall be required to 
sign an Attendance Roster and a Disclosure Certificate. The attendance 
rosters and certificates shall be maintained in official files for a 
minimum of six months after award.
    (3) The improper disclosure of sensitive information could result in 
criminal prosecution or an adverse action.
    (k) Controls on the use of outside evaluators. The use of outside 
evaluators shall be approved in accordance with NFS 1815.207-70(b). A 
cover sheet with the following legend shall be affixed to data provided 
to outside evaluators:

                Government Notice for Handling Proposals

    This proposal shall be used and disclosed for evaluation purposes 
only, and a copy of this Government notice shall be applied to any 
reproduction or abstract thereof. Any authorized restrictive notices 
which the submitter places on this proposal shall also be strictly 
complied with.
    (l) Printing, binding, and duplicating. Proposals for efforts that 
involve printing, binding, and duplicating in excess of 25,000 pages are 
subject to the regulations of the Congressional Joint Committee on 
Printing. The technical office will refer such proposals to the 
Installation Central Printing Management Officer (ICPMO) to ensure 
compliance with NPD 1490.1. The Agreement Officer will be advised in 
writing of the results of the ICPMO review.



Sec. 1274.210  Unsolicited proposals.

    (a) For a proposal to be considered a valid unsolicited proposal, 
the submission must--
    (1) Be innovative and unique;
    (2) Be independently originated and developed by the recipient;

[[Page 482]]

    (3) Be prepared without Government supervision, endorsement, 
direction or direct Government involvement;
    (4) Include sufficient technical and cost detail to permit a 
determination that Government support could be worthwhile and the 
proposed work could benefit the agency's research and development or 
other mission responsibilities; and
    (5) Not be an advance proposal for a known agency requirement that 
can be acquired by competitive methods.
    (b) For each unsolicited proposal selected for award, the cognizant 
technical office will prepare and furnish to the Agreement Officer, a 
justification for acceptance of an unsolicited proposal (JAUP). The JAUP 
shall be submitted for the approval of the agreement officer after 
review and concurrence at a level above the technical officer. The 
evaluator shall consider the following factors, in addition to any 
others appropriate for the particular proposal:
    (1) Unique and innovative methods, approaches or concepts 
demonstrated by the proposal.
    (2) Overall scientific or technical merits of the proposal.
    (3) The offeror's capabilities, related experience, facilities, 
techniques, or unique combinations of these which are integral factors 
for achieving the proposal objectives.
    (4) The qualifications, capabilities, and experience of the proposed 
key personnel who are critical in achieving the proposal objectives.
    (5) Current, open solicitations under which the unsolicited proposal 
could be evaluated.
    (c) Unsolicited proposals shall be handled in accordance with NFS 
1815.606, ``Agency Procedures''.
    (d) Unsolicited proposals from foreign sources are subject to NPD 
1360.2, ``Development of International Cooperation in Space and 
Aeronautics Programs''.
    (e) There is no requirement for a public announcement of the award 
of a cooperative agreement. In addition, there is no requirement for 
announcement of awards resulting from unsolicited proposals. However, in 
those instances where a public announcement is planned and the award is 
the result of an unsolicited proposal, in addition to the requirements 
of NFS 1805.303-71(a)(3), NASA personnel must take measures that ensure 
protection of the data and intellectual property rights of submitters of 
unsolicited proposals as provided by FAR 5.202(a)(8).
    (f) Additional information regarding unsolicited proposals is 
available in the handbook entitled, ``Guidance for the Preparation and 
Submission of Unsolicited Proposals'', which is available on the NASA 
Acquisition Internet Service Website at: http://ec.msfc.nasa.gov/hq/
library/unSol-Prop.html.



Sec. 1274.211  Award procedures.

    (a) In accordance with NFS 1805.303-71(a)(3), the NASA Administrator 
shall be notified at least five (5) workdays prior to a planned public 
announcement for award of a cooperative agreement (regardless of dollar 
value), if it is thought the agreement may be of significant interest to 
Headquarters.
    (b) For awards that are the result of a competitive source 
selection, the technical officer will prepare and furnish to the 
agreement officer a signed selection statement based on the selection 
criteria stated in the solicitation.
    (1) Bilateral award. All cooperative agreements shall be awarded on 
a bilateral basis.
    (2) Consortium awards. If the cooperative agreement is to be awarded 
to a consortium, a completed, formally executed Articles of 
Collaboration is required prior to award.
    (c) Central Contractor Registration (CCR). Prior to implementation 
of the Integrated Financial Management (IFM) System at each center, all 
grant and cooperative agreement recipients are required to register in 
the Department of Defense (DOD) Central Contractor Registration (CCR) 
database. Registration is required in order to obtain a Commercial and 
Government Entity (CAGE) code, which will be used as a grant and 
cooperative agreement identification number for the new system. The 
agreement officer shall verify that the prospective awardee is 
registered in the CCR database using the DUNS number or, if applicable, 
the DUNS+4 number, via the Internet at http://www.ccr2000.com or by 
calling

[[Page 483]]

toll free: 888-227-2423, commercial: 616-961-5757.
    (d) Certifications, Disclosures, and Assurances. (1) Agreement 
officers are required to ensure that all necessary certifications, 
disclosures, and assurances have been obtained prior to awarding a 
cooperative agreement.
    (2) Each new proposal shall include a certification for debarment 
and suspension under the requirements of 14 CFR 1265.510 and 1260.117.
    (3) Each new proposal for an award exceeding $100,000 shall include 
a certification, and a disclosure form (SF LLL) if required, on Lobbying 
under the requirements of 14 CFR 1271.110 and 1260.117.
    (4) Unless a copy is on file at the NASA center, recipients must 
furnish an assurance on NASA Form (NF) 1206 on compliance with Civil 
Rights statutes specified in 14 CFR parts 1250 through 1253.



Sec. 1274.212  Document format and numbering.

    (a) Formats. Agreement officers shall use NF 1687A (available via 
the Internet at https://extranet.hq.nasa.gov/nef/user/form--search.cfm), 
with minimum modification, as the standard cooperative agreement cover 
page for the award of all cooperative agreements.
    (b) Cooperative agreement numbering system. Cooperative agreement 
numbering may be changed once the Integrated Financial Management (IFM) 
is implemented. Until IFM is implemented, cooperative agreement 
numbering shall conform to NFS 1804.7102, except that a NCC prefix will 
be used in lieu of the NAS prefix. Along with the prefix NCC, a one or 
two digit Center Identification Number, and a sequence number of up to 
five digits will be used. Inclusive of the prefix and fiscal year, the 
total number of characters, digits, and spaces cannot exceed 11.



Sec. 1274.213  Distribution of cooperative agreements.

    Copies of cooperative agreements and modifications will be provided 
to: payment office, technical officer, administrative agreement officer 
when delegation has been made (particularly when administrative 
functions are delegated to DOD or another agency), NASA Center for 
Aerospace Information (CASI), Attn: Document Processing Section, 7121 
Standard Drive, Hanover, MD 21076, and any other appropriate recipient. 
Copies of the statement of work, contained in the recipient's proposal 
and accepted by NASA, will be provided to the administrative agreement 
officer and CASI. The cooperative agreement file will contain a record 
of the addresses for distributing agreements and supplements.



Sec. 1274.214  Inquiries and release of information.

    NASA personnel shall follow the procedures established in NFS 
1805.402 prior to releasing information to the news media or the general 
public. The procedures established by NFS 1805.403 shall be followed 
when responding to inquiries from members of Congress.



Sec. 1274.215  Federal and federally funded construction projects.

    (a) In accordance with E.O. 13202 of February 17, 2001, 
``Preservation of Open Competition and Government Neutrality Towards 
Government Contractors' Labor Relations on Federal and Federally Funded 
Construction Projects'', as amended on April 6, 2001, the Government, or 
any construction manager acting on behalf of the Government, shall not--
    (1) Require or prohibit recipients, potential recipients or 
subrecipients to enter into or adhere to agreements with one or more 
labor organizations (as defined in 42 U.S.C. 2000e(d)) on the same or 
other related construction projects; or
    (2) Otherwise discriminate against recipients, potential recipients 
or subrecipients for becoming, refusing to become, or remaining 
signatories or otherwise adhering to agreements with one or more 
organizations, on the same or other related construction projects.
    (b) Nothing in this section prohibits the recipient, potential 
recipients or subrecipients from voluntarily entering into project labor 
agreements.
    (c) The Assistant Administrator for Procurement may exempt a 
construction project from this policy if, as of February 17, 2001--

[[Page 484]]

    (1) The agency or a construction manager acting on behalf of the 
Government had issued or was party to bid specifications, project 
agreements, agreements with one or more labor organizations, or other 
controlling documents with respect to that particular project, which 
contained any of the requirements or prohibitions in paragraph (d)(1) of 
this section; and
    (2) One or more construction contracts (includes any contract 
awarded by the recipient) subject to such requirements or prohibitions 
had been awarded.
    (d) The Assistant Administrator for Procurement may exempt a 
particular project, contract, or subcontract from this policy upon a 
finding that special circumstances require an exemption in order to 
avert an imminent threat to public health or safety, or to serve the 
national security. A finding of ``special circumstances'' may not be 
based on the possibility or presence of a labor dispute concerning the 
use of contractors or subcontractors who are nonsignatories to, or 
otherwise do not adhere to, agreements with one or more labor 
organizations, or concerning employees on the project who are not 
members of, or affiliated with, a labor organization.

[67 FR 77668, Dec. 19, 2002]



                     Subpart 1274.3--Administration



Sec. 1274.301  Delegation of administration.

    Cooperative agreements may be administered by the awarding activity 
or the awarding activity may obtain additional administration services 
in accordance with the procedures provided by NFS 1842.202. NASA Form 
1678, NASA Technical Officer Delegation for Cooperative Agreements with 
Commercial Firms, will be used to delegate responsibilities to the NASA 
Technical Officer.



Sec. 1274.302  Transfers, novations, and change of name agreements.

    (a) Transfer of cooperative agreements. Novation is the only means 
by which a cooperative agreement may be transferred from one recipient 
to another.
    (b) Novation and change of name. NASA legal counsel shall review, 
for legal sufficiency, all novation agreements or change of name 
agreements of the recipient, prior to formal execution by the agreement 
officer.



                        Subpart 1274.4--Property



Sec. 1274.401  Government furnished property.

    Property or equipment owned by the Government that will be used in 
the performance of a cooperative agreement shall be included as part of 
the Government's percentage (usually 50 percent) of shared costs. In 
most cases the property or equipment will be categorized as non-cash 
contributions. Agreement officers may use the procedures promulgated by 
FAR Subpart 45.2, as guidelines to calculate the value of the property 
or equipment.



Sec. 1274.402  Contractor acquired property.

    As provided in Sec. 1274.923(c), title to property acquired with 
government funds vests in the government. Under a cost shared 
cooperative agreement, joint ownership of property equal to the cost-
sharing ratio will result if the parties make no specific arrangements 
regarding such property. The disposition of acquired property should be 
addressed in the cooperative agreement at the time of award. The 
cooperative agreement may provide that all such property be contributed 
by the recipient as a non-cash contribution. A reasonable dollar value 
must be specified and adequately supported. In this case, title will 
vest in the recipient. Alternatively, NASA and the recipient may include 
in the cooperative agreement any other appropriate arrangement for the 
disposition of acquired property upon completion of the effort.



                  Subpart 1274.5--Procurement Standards



Sec. 1274.501  Purpose of procurement standards.

    (a) The procurement standards stated in Sec. Sec. 1274.502 through 
1274.510, may not apply to or may supplement the procedures of a 
commercial recipient that has a purchasing system approved in accordance 
with the requirements of FAR Subpart 44.3 and NFS 1844.3.

[[Page 485]]

    (b) Sections 1274.502 through 1274.510 set forth standards for use 
by recipients in establishing procedures for the procurement of supplies 
and other expendable property, equipment, real property and other 
services with Federal funds. These standards are furnished to ensure 
that such materials and services are obtained in an effective manner and 
in compliance with the provisions of applicable Federal statutes and 
executive orders.



Sec. 1274.502  Recipient responsibilities.

    The standards contained in this section do not relieve the recipient 
of the contractual responsibilities arising under its contract(s). The 
recipient is the responsible authority, without recourse to NASA, 
regarding the settlement and satisfaction of all contractual and 
administrative issues arising out of procurements entered into in 
support of an award or other agreement. This includes disputes, claims, 
protests of award, source evaluation or other matters of a contractual 
nature. Matters concerning violation of statute are to be referred to 
such Federal, State or local authority as may have proper jurisdiction.



Sec. 1274.503  Codes of conduct.

    The recipient shall maintain written standards of conduct governing 
the performance of its employees engaged in the award and administration 
of contracts. No employee, officer, or agent shall participate in the 
selection, award, or administration of a contract supported by Federal 
funds if a real or apparent conflict of interest would be involved. Such 
a conflict would arise when the employee, officer, or agent, any member 
of his or her immediate family, his or her partner, or an organization 
which employs or is about to employ any of the parties indicated herein, 
has a financial or other interest in the firm selected for an award. The 
officers, employees, and agents of the recipient shall neither solicit 
nor accept gratuities, favors, or anything of monetary value from 
contractors, or parties to subagreements. However, recipients may set 
standards for situations in which the financial interest is not 
substantial or the gift is an unsolicited item of nominal value. The 
standards of conduct shall provide for disciplinary actions to be 
applied for violations of such standards by officers, employees, or 
agents of the recipient.



Sec. 1274.504  Competition.

    All procurement transactions shall be conducted in a manner to 
provide, to the maximum extent practical, open and free competition. The 
recipient shall be alert to organizational conflicts of interest as well 
as noncompetitive practices among contractors that may restrict or 
eliminate competition or otherwise restrain trade. In order to ensure 
objective contractor performance and eliminate unfair competitive 
advantage, contractors that develop or draft specifications, 
requirements, statements of work, invitations for bids and/or requests 
for proposals shall normally be excluded from competing for such 
procurements, unless conflicts or apparent conflicts of interest issues 
have been resolved. Awards shall be made to the bidder or offeror whose 
bid or offer is responsive to the solicitation and is most advantageous 
to the recipient, price, quality and other factors considered. 
Solicitations shall clearly set forth all requirements that the bidder 
or offeror shall fulfill in order for the bid or offer to be evaluated 
by the recipient. Any and all bids or offers may be rejected when it is 
in the recipient's interest to do so.



Sec. 1274.505  Procurement procedures.

    (a) All recipients shall establish written procurement procedures. 
These procedures shall provide at a minimum, that the conditions in 
paragraphs (a)(1), (2) and (3) of this section apply.
    (1) Recipients avoid purchasing unnecessary items.
    (2) Where appropriate, an analysis is made of lease and purchase 
alternatives to determine which would be the most economical and 
practical procurement for the Federal Government.
    (3) Solicitations for goods and services provide for all of the 
following:
    (i) A clear and accurate description of the technical requirements 
for the material, product or service to be procured. In competitive 
procurements, such a description shall not contain

[[Page 486]]

features that unduly restrict competition.
    (ii) Requirements that the bidder/offeror must fulfill and all other 
factors to be used in evaluating bids or proposals.
    (iii) A description, whenever practicable, of technical requirements 
in terms of functions to be performed or performance required, including 
the range of acceptable characteristics or minimum acceptable standards.
    (iv) The specific features of ``brand name or equal'' descriptions 
that bidders are required to meet when such items are included in the 
solicitation.
    (v) The acceptance, to the extent practicable and economically 
feasible, of products and services dimensioned in the metric system of 
measurement.
    (vi) Preference, to the extent practicable and economically 
feasible, for products and services that conserve natural resources and 
protect the environment and are energy efficient.
    (b) Positive efforts shall be made by recipients to utilize small 
business, veteran-owned small business, service-disabled veteran-owned 
small business, historically underutilized small business, small 
disadvantaged business, women-owned business concerns, Historically 
Black Colleges and Universities, and minority educational institutions 
as subcontractors to the maximum extent practicable. Recipients of NASA 
awards shall take all of the following steps to further this goal.
    (1) Make information on forthcoming opportunities available and 
arrange time frames for purchases and contracts.
    (2) Consider in the contract process whether firms competing for 
larger contracts intend to subcontract with these businesses and 
institutions.
    (3) Encourage contracting with consortiums or teams of these 
businesses and institutions when a contract is too large for one of 
these firms to handle individually.
    (4) Use the services and assistance, as appropriate, of such 
organizations as the Small Business Administration and the Department of 
Commerce's Minority Business Development Agency in the solicitation and 
utilization of small businesses, minority-owned firms and women's 
business enterprises.
    (c) The type of procuring instruments used (e.g., fixed price 
contracts, cost reimbursable contracts, purchase orders, and incentive 
contracts) shall be determined by the recipient but shall be appropriate 
for the particular procurement and for promoting the best interest of 
the program or project involved. The ``cost-plus-a-percentage-of-cost'' 
or ``percentage of construction cost'' methods of contracting shall not 
be used.
    (d) Contracts shall be made only with responsible contractors who 
possess the potential ability to perform successfully under the terms 
and conditions of the proposed procurement. Consideration shall be given 
to such matters as contractor integrity, record of past performance, 
financial and technical resources or accessibility to other necessary 
resources. In certain circumstances, contracts with certain parties are 
restricted by 14 CFR part 1265, the implementation of Executive Orders 
12549 and 12689, Debarment and Suspension.
    (e) Recipients shall, on request, make available for NASA, pre-award 
review and procurement documents, such as request for proposals or 
invitations for bids, independent cost estimates, etc., when any of the 
following conditions apply:
    (1) A recipient's procurement procedures or operation fails to 
comply with the procurement standards in NASA's implementation of this 
subpart.
    (2) The procurement is expected to exceed the simplified acquisition 
threshold and is to be awarded without competition or only one bid or 
offer is received in response to a solicitation.
    (3) The procurement, which is expected to exceed the simplified 
acquisition threshold, specifies a ``brand name'' product.
    (4) The proposed award over the simplified acquisition threshold is 
to be awarded to other than the apparent low bidder under a sealed bid 
procurement.
    (5) A proposed contract modification changes the scope of a contract 
or increases the contract amount by more than the amount of the 
simplified acquisition threshold.

[[Page 487]]



Sec. 1274.506  Cost and price analysis.

    Some form of cost or price analysis shall be made and documented in 
the procurement files in connection with every procurement action. Price 
analysis may be accomplished in various ways, including the comparison 
of price quotations submitted, market prices and similar indicies, 
together with discounts. Cost analysis is the review and evaluation of 
each element of cost to determine reasonableness, allocability and 
allowability.



Sec. 1274.507  Procurement records.

    Procurement records and files for purchases in excess of the 
simplified acquisition threshold shall include the following at a 
minimum:
    (a) Basis for contractor selection.
    (b) Justification for lack of competition when competitive bids or 
offers are not obtained.
    (c) Basis for award cost or price.



Sec. 1274.508  Contract administration.

    A system for contract administration shall be maintained to ensure 
contractor conformance with the terms, conditions and specifications of 
the contract and to ensure adequate and timely follow-up of all 
purchases. Recipients shall evaluate contractor performance and 
document, as appropriate, whether contractors have met the terms, 
conditions and specifications of the contract.



Sec. 1274.509  Contract provisions.

    The recipient shall include, in addition to provisions to define a 
sound and complete agreement, the following provisions in all contracts. 
The following provisions shall also be applied to subcontracts:
    (a) Contracts in excess of the simplified acquisition threshold 
(currently $100,000) shall contain contractual provisions or conditions 
that allow for administrative, contractual, or legal remedies in 
instances in which a contractor violates or breaches the contract terms, 
and provide for such remedial actions as may be appropriate.
    (b) All contracts in excess of the simplified acquisition threshold 
shall contain suitable provisions for termination by the recipient, 
including the manner by which termination shall be effected and the 
basis for settlement. In addition, such contracts shall describe 
conditions under which the contract may be terminated for default as 
well as conditions where the contract may be terminated because of 
circumstances beyond the control of the contractor.
    (c) All negotiated contracts (except those for less than the 
simplified acquisition threshold) awarded by recipients shall include a 
provision to the effect that the recipient, NASA, the Comptroller 
General of the United States, or any of their duly authorized 
representatives, shall have access to any books, documents, papers and 
records of the contractor which are directly pertinent to a specific 
program for the purpose of making audits, examinations, excerpts and 
transcriptions.
    (d) For Construction and facility improvements, except as otherwise 
required by statute, an award that requires the contracting (or 
subcontracting) for construction or facility improvements shall provide 
for the recipient to follow its own requirements relating to bid 
guarantees, performance bonds, and payment bonds unless the construction 
contract or subcontract exceeds $100,000. For those contracts or 
subcontracts exceeding $100,000, NASA may accept the bonding policy and 
requirements of the recipient, provided NASA has made a determination 
that the Federal Government's interest is adequately protected. If such 
a determination has not been made, the minimum requirements shall be as 
follows:
    (1) A bid guarantee from each bidder equivalent to five percent of 
the bid price. The ``bid guarantee'' shall consist of a firm commitment 
such as a bid bond, certified check, or other negotiable instrument 
accompanying a bid as assurance that the bidder shall, upon acceptance 
of his bid, execute such contractual documents as may be required within 
the time specified.
    (2) A performance bond on the part of the contractor for 100 percent 
of the contract price. A ``performance bond'' is one executed in 
connection with a contract to secure fulfillment of all the

[[Page 488]]

contractor's obligations under such contract.
    (3) A payment bond on the part of the contractor for 100 percent of 
the contract price. A ``payment bond'' is one executed in connection 
with a contract to assure payment as required by statute of all persons 
supplying labor and material in the execution of the work provided for 
in the contract.
    (4) Where bonds are required in the situations described in this 
section, the bonds shall be obtained from companies holding certificates 
of authority as acceptable sureties pursuant to 31 CFR part 223, 
``Surety companies doing business with the United States.''



Sec. 1274.510  Subcontracts.

    Recipients (individual firms or consortia) are not authorized to 
issue grants or cooperative agreements to subrecipients. All entities 
that are involved in performing the research and development effort that 
is the purpose of the cooperative agreement shall be part of the 
recipient's consortium and not subcontractors. All contracts, including 
small purchases, awarded by recipients and their contractors shall 
contain the procurement provisions of Exhibit A to this part, as 
applicable and may be subject to approval requirements cited in Sec. 
1274.925.



                   Subpart 1274.6--Reports and Records



Sec. 1274.601  Retention and access requirements for records.

    (a) This subpart sets forth requirements for record retention and 
access to records for awards to recipients.
    (b) Financial records, supporting documents, statistical records, 
and all other records pertinent to an award shall be retained for a 
period of three years from the date of submission of the final invoice. 
The only exceptions are the following:
    (1) If any litigation, claim, or audit is started before the 
expiration of the 3-year period, the records shall be retained until all 
litigation, claims or audit findings involving the records have been 
resolved and final action taken.
    (2) Records for real property and equipment acquired with Federal 
funds shall be retained for 3 years after final disposition.
    (3) When records are transferred to or maintained by NASA, the 3-
year retention requirement is not applicable to the Recipient.
    (4) Indirect cost rate proposals, cost allocations plans, etc., as 
specified in paragraph (g) of this section.
    (c) Copies of original records may be substituted for the original 
records if authorized by NASA.
    (d) NASA shall request transfer of certain records to its custody 
from recipients when it determines that the records possess long term 
retention value. However, in order to avoid duplicate record keeping, 
NASA may make arrangements for recipients to retain any records that are 
continuously needed for joint use.
    (e) NASA, the Inspector General, Comptroller General of the United 
States, or any of their duly authorized representatives, have the right 
of timely and unrestricted access to any books, documents, papers, or 
other records of Recipients that are pertinent to the awards, in order 
to make audits, examinations, excerpts, transcripts and copies of such 
documents. This right also includes timely and reasonable access to a 
recipient's personnel for the purpose of interview and discussion 
related to such documents. The rights of access in this paragraph are 
not limited to the required retention period, but shall last as long as 
records are retained.
    (f) Unless required by statute, NASA shall not place restrictions on 
recipients that limit public access to the records of recipients that 
are pertinent to an award, except when NASA can demonstrate that such 
records shall be kept confidential and would have been exempted from 
disclosure pursuant to the Freedom of Information Act (5 U.S.C. 552) if 
the records had belonged to NASA.
    (g) Indirect cost rate proposals, cost allocations plans, etc., 
applies to the following types of documents, and their supporting 
records: indirect cost rate computations or proposals, cost allocation 
plans, and any similar accounting computations of the rate at which a 
particular group of costs is chargeable (such as computer usage 
chargeback

[[Page 489]]

rates or composite fringe benefit rates).
    (1) If submitted for negotiation. If the recipient submits to NASA 
or the subrecipient submits to the recipient the proposal, plan, or 
other computation to form the basis for negotiation of the rate, then 
the 3-year retention period for its supporting records starts on the 
date of such submission.
    (2) If not submitted for negotiation. If the recipient is not 
required to submit to NASA or the subrecipient is not required to submit 
to the recipient the proposal, plan, or other computation for 
negotiation purposes, then the 3-year retention period for the proposal, 
plan, or other computation and its supporting records starts at the end 
of the fiscal year (or other accounting period) covered by the proposal, 
plan, or other computation.



                Subpart 1274.7--Suspension or Termination



Sec. 1274.701  Suspension or termination.

    (a) Suspension. NASA or the recipient may suspend the cooperative 
agreement for a mutually agreeable period of time, if an assessment is 
required to determine whether the agreement should be terminated.
    (b) Termination. (1) A cooperative agreement provides both NASA and 
the recipient the ability to terminate the Agreement if it is in their 
best interests to do so, by giving the other party prior written notice. 
Upon receipt of a notice of termination, the receiving party shall take 
immediate steps to stop the accrual of any additional obligations, which 
might require payment.
    (2) NASA may, for example, terminate the Agreement if the recipient 
is not making anticipated technical progress, if the recipient 
materially changes the objectives of the agreement, or if appropriated 
funds are not available to support the program.
    (3) Similarly, the recipient may terminate the agreement if, for 
example, technical progress is not being made, if the commercial 
recipient shifts its technical emphasis, or if other technological 
advances have made the effort obsolete.
    (4) If the cooperative agreement is terminated by either NASA or the 
recipient and NASA elects to continue the project with a party other 
than the recipient, the right of the government to use data first 
produced by either NASA or the recipient in the performance of this 
agreement is covered by 1274.905(b). See Sec. 1274.208(l)(6) to assure 
that appropriate language is contained in Sec. 1274.905(b).



         Subpart 1274.8--Post-Award/Administrative Requirements



Sec. 1274.801   Adjustments to performance costs.

    In order to accomplish program objectives, there may be occasions 
where additional contributions (cash and/or in-kind contributions) by 
NASA and the recipient beyond the initial agreement may be needed. There 
may also be occasions where actual costs of NASA and the recipient may 
be less than initially agreed. In cases where program costs are 
adjusted, prior to execution of a modification to the agreement, mutual 
agreement between NASA and the recipient shall also be reached on the 
corresponding changes in program requirements such as schedule, work 
statements and milestone payments. Funding for any work required beyond 
the initial funding level of the cooperative agreement, shall require 
submission by the recipient of a detailed proposal to the agreement 
officer. Prior to execution of a modification increasing NASA's initial 
cost share or funding levels, detailed cost analysis techniques may be 
applied, which may include requests for audits services and/or 
application of other pricing support techniques. Any adjustments or 
modifications that result in a change to the performance costs of the 
cooperative agreement shall continue to maintain the share ratio 
requirements (normally 50/50) stated in Sec. 1274.204(b).



Sec. 1274.802  Modifications.

    Modifications to the cooperative agreement in particular, 
modifications that affect funding, milestone payments, program schedule 
and statement of work requirements shall be executed on a bilateral 
basis.

[[Page 490]]



Sec. 1274.803  Closeout procedures.

    (a) Recipients shall submit, within 90 calendar days after the date 
of completion of the cooperative agreement, all financial, performance, 
and other reports as required by the terms and conditions of the award. 
Extensions may be approved when requested by the recipient.
    (b) The recipient shall account for any real and personal property 
acquired with Federal funds or received from the Federal Government in 
accordance with Sec. 1274.923.



Sec. 1274.804  Subsequent adjustments and continuing responsibilities.

    The closeout of an award does not affect any of the following:
    (a) Audit requirements in Sec. 1274.932.
    (b) Government Furnished and Contractor Acquired Property 
requirements in Sec. Sec. 1274.401 and 1274.402.
    (c) Records retention as required in Sec. 1274.601.



         Subpart 1274.9--Other Provisions and Special Conditions



Sec. 1274.901  Other provisions and special conditions.

    Where applicable, the provisions set forth in this subpart are to be 
incorporated in and made a part of all cooperative agreements with 
commercial firms. When included, the provisions at Sec. 1274.902 
through Sec. 1274.909 and the provisions at Sec. 1274.933 through 
Sec. 1274.942 are to be incorporated in full text substantially as 
stated in this regulation. When required, the provisions at Sec. 
1274.910 through Sec. 1274.932, may be incorporated by reference in an 
enclosure to each cooperative agreement. For inclusion of provisions in 
subcontracts, see Exhibit A of this part, and Sec. 1274.925.



Sec. 1274.902  Purpose.

                                 Purpose

                                July 2002

    The purpose of this cooperative agreement is to conduct a shared 
resource project that will lead to------. This cooperative agreement 
will advance the technology developments and research which have been 
performed on------. The specific objective is to------. This work will 
culminate in------.

                           [End of provision]



Sec. 1274.903  Responsibilities.

                            Responsibilities

                                July 2002

    (a) This Cooperative Agreement will include substantial NASA 
participation during performance of the effort. NASA and the Recipient 
agree to the following Responsibilities, a statement of cooperative 
interactions to occur during the performance of this effort. NASA and 
the Recipient shall exert all reasonable efforts to fulfill the 
responsibilities stated below.
    (b) NASA Responsibilities. The following NASA responsibilities are 
hereby set forth effective upon the start date, which unless stated 
otherwise, shall be the execution date of this bilateral Cooperative 
Agreement. The end date stated below, may be changed by a written 
bilateral modification:

Responsibilities Start Date End Date

    (c) Recipient Responsibilities. The Recipient shall be responsible 
for particular aspects of project performance as set forth in the 
technical proposal dated------, attached hereto (or Statement of Work 
dated------, attached hereto). The following responsibilities are hereby 
set forth effective upon the start date, which unless stated otherwise, 
shall be the execution date of this bilateral Cooperative Agreement. The 
end date stated below, may be changed by a written bilateral 
modification:

Responsibilities Start Date End Date

    (d) Since NASA contractors may obtain certain intellectual property 
rights arising from work for NASA in support of this agreement, NASA 
will inform Recipient whenever NASA intends to use NASA contractors to 
perform technical engineering services in support of this agreement.
    (e) Unless the Cooperative Agreement is terminated by the parties, 
end date can only be changed by execution of a bilateral modification.

                           [End of provision]



Sec. 1274.904  Resource sharing requirements.

                      Resource Sharing Requirements

                                July 2002

    Where NASA and other Government agencies are involved in the 
cooperative agreement, ``NASA'' shall also mean ``Federal Government''.
    (a) NASA and the Recipient will share in providing the resources 
necessary to perform the agreement. NASA funding and non-cash

[[Page 491]]

contributions (personnel, equipment, facilities, etc.) and the dollar 
value of the Recipient's cash and/or non-cash contribution will be on 
a------ (NASA)-------- (Recipient) basis. Criteria and procedures for 
the allowability and allocability of cash and non-cash contributions 
shall be governed by FAR Parts 30 and 31, and NFS Parts 1830 and 1831.
    (b) The Recipient's share shall not be charged to the Government 
under this Agreement or under any other contract, grant, or cooperative 
agreement, except to the extent that the Recipient's contribution may be 
allowable IR&D costs pursuant to FAR 31.205-18(e).

                           [End of provision]



Sec. 1274.905  Rights in data.

    As noted in Sec. 1274.208(l)(1), the following provision assumes a 
substantially equal cost sharing relationship where collaborative 
research, experimental, developmental, engineering, demonstration, or 
design activities are to be carried out, such that it is likely that 
``proprietary'' information will be developed and/or exchanged under the 
agreement. If cost sharing is unequal or no extensive research, 
experimental, developmental, engineering, demonstration, or design 
activities are likely, a different set of provisions may be appropriate. 
The Agreement Officer is expected to complete and/or select the 
appropriate bracketed language under the provision for those paragraphs 
dealing with data first produced under the cooperative agreement. In 
addition, the Agreement Officer may, in consultation with the Center's 
Patent or Intellectual Property Counsel, tailor the provision to fit the 
particular circumstances of the program and/or the recipient's need to 
protect specific proprietary information.

                             Rights in Data

                                July 2002

    (a) Definitions.
    ``Data,'' means recorded information, regardless of form, the media 
on which it may be recorded, or the method of recording. The term 
includes, but is not limited to, data of a scientific or technical 
nature, computer software and documentation thereof, and data comprising 
commercial and financial information.
    (b) Data categories.
    (1) General. Data exchanged between NASA and Recipient under this 
cooperative agreement will be exchanged without restriction as to its 
disclosure, use or duplication except as otherwise provided below in 
this provision.
    (2) Background Data. In the event it is necessary for Recipient to 
furnish NASA with Data which existed prior to, or produced outside of, 
this cooperative agreement, and such Data embodies trade secrets or 
comprises commercial or financial information which is privileged or 
confidential, and such Data is so identified with a suitable notice or 
legend, the Data will be maintained in confidence and disclosed and used 
by NASA and its contractors (under suitable protective conditions) only 
for the purpose of carrying out NASA's responsibilities under this 
cooperative agreement. Upon completion of activities under this 
agreement, such Data will be disposed of as requested by Recipient.
    (3) Data first produced by Recipient. In the event Data first 
produced by Recipient in carrying out Recipient's responsibilities under 
this cooperative agreement is furnished to NASA, and Recipient considers 
such Data to embody trade secrets or to comprise commercial or financial 
information which is privileged or confidential, and such Data is so 
identified with a suitable notice or legend, the Data will be maintained 
in confidence for a period of [insert ``two'' to ``five''] years after 
development of the data and be disclosed and used by [``NASA'' or ``the 
Government,'' as appropriate] and its contractors (under suitable 
protective conditions) only for [insert appropriate purpose; for 
example: experimental; evaluation; research; development, etc.] by or on 
behalf of [``NASA'' or ``the Government'' as appropriate] during that 
period. In order that [``NASA'' or the ``Government'', as appropriate] 
and its contractors may exercise the right to use such Data for the 
purposes designated above, NASA, upon request to the Recipient, shall 
have the right to review and request delivery of Data first produced by 
Recipient. Delivery shall be made within a time period specified by 
NASA.
    (4) Data first produced by NASA. As to data first produced by NASA 
in carrying out NASA's responsibilities under this cooperative agreement 
and which Data would embody trade secrets or would comprise commercial 
or financial information that is privileged or confidential if it had 
been obtained from the Recipient, will be marked with an appropriate 
legend and maintained in confidence for an agreed to period of up to ( ) 
years [INSERT A PERIOD UP TO 5 YEARS] after development of the 
information, with the express understanding that during the aforesaid 
period such Data may be disclosed and used (under suitable protective 
conditions) by or on behalf of the Government for Government purposes 
only, and thereafter for any purpose whatsoever without restriction on 
disclosure and use. Recipient agrees not to disclose such Data to any 
third party

[[Page 492]]

without NASA's written approval until the aforementioned restricted 
period expires. Use of this data under a separate cooperative agreement 
or contract issued to a party other than the Recipient for the purpose 
of continuing the project in the event this cooperative agreement is 
terminated by either party shall constitute a government purpose.
    (5) Copyright. (i) In the event Data is exchanged with a notice 
indicating the Data is protected under copyright as a published 
copyrighted work, or are deposited for registration as a published work 
in the U.S. Copyright Office, the following paid-up licenses shall 
apply:
    (A) If it is indicated on the Data that the Data existed prior to, 
or was produced outside of, this agreement, the receiving party and 
others acting on its behalf, may reproduce, distribute, and prepare 
derivative works for the purpose of carrying out the receiving party's 
responsibilities under this cooperative agreement; and
    (B) If the furnished Data does not contain the indication of 
paragraph (b)(5)(i)(A) of this section, it will be assumed that the Data 
was first produced under this agreement, and the receiving party and 
others acting on its behalf, shall be granted a paid up, nonexclusive, 
irrevocable, world-wide license for all such Data to reproduce, 
distribute copies to the public, prepare derivative works, distribute 
copies to the public, and perform publicly and display publicly, by or 
on behalf of the receiving party. For Data that is computer software, 
the right to distribute shall be limited to potential users in the 
United States.
    (ii) When claim is made to copyright, the Recipient shall affix the 
applicable copyright notice of 17 U.S.C. 401 or 402 and acknowledgment 
of Government sponsorship to the data when and if the data are delivered 
to the Government.
    (6) Oral and visual information. If information which the Recipient 
considers to embody trade secrets or to comprise commercial or financial 
information which is privileged or confidential is disclosed orally or 
visually to NASA, such information must be reduced to tangible, recorded 
form (i.e., converted into Data as defined herein), identified and 
marked with a suitable notice or legend, and furnished to NASA within 10 
days after such oral or visual disclosure, or NASA shall have no duty to 
limit or restrict, and shall not incur any liability for, any disclosure 
and use of such information.
    (7) Disclaimer of liability. Notwithstanding the above, NASA shall 
not be restricted in, nor incur any liability for, the disclosure and 
use of:
    (i) Data not identified with a suitable notice or legend as set in 
paragraph (b)(2) of this section; nor
    (ii) Information contained in any Data for which disclosure and use 
is restricted under paragraphs (b)(2) or (3) of this section, if such 
information is or becomes generally known without breach of the above, 
is known to or is generated by NASA independently of carrying out 
responsibilities under this agreement, is rightfully received from a 
third party without restriction, or is included in data which 
Participant has, or is required to furnish to the U.S. Government 
without restriction on disclosure and use.
    (c) Marking of data. Any Data delivered under this cooperative 
agreement, by NASA or the Recipient, shall be marked with a suitable 
notice or legend indicating the data was generated under this 
cooperative agreement.
    (d) Lower tier agreements. The Recipient shall include this 
provision, suitably modified to identify the parties, in all 
subcontracts or lower tier agreements, regardless of tier, for 
experimental, developmental, or research work.

                           [End of provision]



Sec. 1274.906  Designation of New Technology Representative and Patent Representative.

 Designation of New Technology Representative and Patent Representative

                                July 2002

    (a) For purposes of administration of the clause of this cooperative 
agreement entitled ``PATENT RIGHTS--RETENTION BY THE CONTRACTOR (LARGE 
BUSINESS)'' or ``PATENT RIGHTS--RETENTION BY THE CONTRACTOR (SMALL 
BUSINESS)'' the following named representatives are hereby designated by 
the Agreement Officer to administer such clause:

------------------------------------------------------------------------
         Title                Office code                Address
------------------------------------------------------------------------
New Technology
Representative
Patent
Representative
------------------------------------------------------------------------

    (b) Reports of reportable items, and disclosure of subject 
inventions, interim reports, final reports, utilization reports, and 
other reports required by the clause, as well as any correspondence with 
respect to such matters, should be directed to the New Technology 
Representative unless transmitted in response to correspondence or 
request from the Patent Representative. Inquiries or requests regarding 
disposition of rights, election of rights, or related matters should be 
directed to the Patent Representative. This clause shall be included in 
any subcontract hereunder requiring ``PATENT RIGHTS--RETENTION BY THE 
CONTRACTOR (LARGE BUSINESS)'' clause or ``PATENT RIGHTS--RETENTION BY 
THE CONTRACTOR

[[Page 493]]

(SMALL BUSINESS)'' clause, unless otherwise authorized or directed by 
the Agreement Officer. The respective responsibilities and authorities 
of the above-named representatives are set forth in NFS 1827.305-370.

                           [End of provision]



Sec. 1274.907  Disputes.

                                Disputes

                                July 2002

    (a) In the event that a disagreement arises, representatives of the 
parties shall enter into discussions in good faith and in a timely and 
cooperative manner to seek resolution. If these discussions do not 
result in a satisfactory solution, the aggrieved party may seek a 
decision from the Dispute Resolution Official under paragraph (b) of 
this provision. This request must be presented no more than (3) three 
months after the events giving rise to the disagreement have occurred.
    (b) The aggrieved party may submit a written request for a decision 
to the Center Ombudsman, who is designated as the Dispute Resolution 
Official. The written request shall include a statement of the relevant 
facts, a discussion of the unresolved issues, and a specification of the 
clarification, relief, or remedy sought. A copy of this written request 
and all accompanying materials must be provided to the other party at 
the same time. The other party shall submit a written position on the 
matters in dispute within thirty (30) calendar days after receiving this 
notification that a decision has been requested. The Dispute Resolution 
Official shall conduct a review of the matters in dispute and render a 
decision in writing within thirty (30) calendar days of receipt of such 
written position.

                           [End of provision]



Sec. 1274.908  Milestone payments.

                           Milestone Payments

                                July 2002

    (a) By submission of the first invoice, the Recipient is certifying 
that it has an established accounting system which complies with 
generally accepted accounting principles, with the requirements of this 
agreement, and that appropriate arrangements have been made for 
receiving, distributing, and accounting for Federal funds received under 
this agreement.
    (b) Payments will be made upon the following milestones: [The 
schedule for payments may be based upon the Recipient's completion of 
specific tasks, submission of specified reports, or whatever is 
appropriate.]

Date                Payment                         Amount
                    Milestone
 

    (c) Upon submission by the recipient of invoices in accordance with 
the provisions of the agreement and upon certification by NASA of 
completion of the payable milestone, the Agreement Officer shall 
authorize payment. Payment shall be made within 30 calendar days after 
receipt of proper invoice. Payment shall be considered as being made on 
the date of electronic funds transfer. A proper invoice must include the 
following:
    (i) Name and address of the recipient.
    (ii) Invoice date (The Recipient is encouraged to date invoices as 
close as possible to the date of the mailing or transmission).
    (iii) Cooperative agreement number.
    (iv) Description, milestone, and extended price of efforts/tasks 
performed.
    (v) Payment terms.
    (vi) Name and address of Recipient official to whom payment is to be 
sent. (Must be the same as that in the cooperative agreement or in a 
proper notice of assignment).
    (vii) Name (where practicable), title, phone number, and mailing 
address of the person to be notified in the event of a defective 
invoice.
    (viii) Any other information or documentation required by the 
cooperative agreement.
    (ix) Taxpayer identification number (TIN).
    (x) While not required, the recipient is strongly encouraged to 
assign an identification number to each invoice.
    (d) A payment milestone may be successfully completed in advance of 
the date appearing in paragraph (b) of this section. However, payment 
shall not be made prior to that date without the written consent of the 
Agreement Officer.
    (e) The recipient is not entitled to partial payment for partial 
completion of a payment milestone.
    (f) Unless approved by the Agreement Officer, all preceding payment 
milestones must be completed before payment can be made for the next 
payment milestone.
    (g) (i) If the Recipient is authorized to submit invoices directly 
to the NASA paying office, the original invoice should be submitted to:
    [Insert the mailing address for submission of cost vouchers]
    (ii) If the Recipient is not authorized to submit invoices directly 
to the NASA paying office, the original invoice should be submitted to 
the Agreement Officer for certification.
    (iii) Copies of the recipient's invoice should be submitted to the 
following offices:
    (A) Copy 1--NASA Agreement Officer.
    (B) Copy 2--Auditor.
    (C) Copy 3--Contract administration office.
    (D) Copy 4--Project management office.
    (E) Copy 5--Other recipients as designated by the Agreement Officer.

[[Page 494]]

                           [End of provision]



Sec. 1274.909  Term of agreement.

                            Term of Agreement

                                July 2002

    (a) The agreement commences on the effective date indicated on the 
attached cover sheet and continues until the expiration date indicated 
on the attached cover sheet unless terminated by either party. If all 
resources are expended prior to the expiration date of the agreement, 
the parties have no obligation to continue performance and may elect to 
cease at that point. The parties may extend the expiration date if 
additional time is required to complete the milestones at no increase in 
Government resources. Requests for approval for no-cost extensions must 
be forwarded to the NASA Agreement Officer no later than ten days prior 
to the expiration of the award to be considered.
    (b) Provisions of this Agreement, which, by their express terms or 
by necessary implication, apply for periods of time other than that 
specified as the agreement term, shall be given effect, notwithstanding 
expiration of the term of the agreement.

                           [End of provision]



Sec. 1274.910  Authority.

                                Authority

                                July 2002

    This is a cooperative agreement as defined in 31 U.S.C. 6305 (the 
Chiles Act) and is entered into pursuant to the authority of 42 U.S.C. 
2451, et seq. (the Space Act).

                           [End of provision]



Sec. 1274.911  Patent rights.

                              Patent Rights

                                July 2002

    (a) Definitions. (1) Administrator means the Administrator or Deputy 
Administrator of NASA.
    (2) Invention means any invention or discovery which is or may be 
patentable or otherwise protectable under Title 35 of the United States 
Code.
    (3) Made when used in relation to any invention means the conception 
or first actual reduction to practice such invention.
    (4) Nonprofit organization means a domestic university or other 
institution of higher education or an organization of the type described 
in Section 501(c)(3) of the Internal Revenue Code of 1954 (26 U.S.C. 
501(c)) and exempt from taxation under Section 501(a) of the Internal 
Revenue Code (26 U.S.C. 501(a)), or any domestic nonprofit scientific or 
educational organization qualified under a State nonprofit organization 
statute.
    (5) Practical application means to manufacture, in the case of a 
composition or product; to practice, in the case of a process or method; 
or to operate, in the case of a machine or system; and, in each case, 
under such conditions as to establish that the invention is being 
utilized and that its benefits are, to the extent permitted by law or 
Government regulations, available to the public on reasonable terms.
    (6) Recipient means:
    (i) The signatory Recipient party or parties or;
    (ii) The Consortium, where a Consortium has been formed for carrying 
out Recipient responsibilities under this agreement.
    (7) Small Business Firm means a domestic small business concern as 
defined at 15 U.S.C. 632 and implementing regulations of the 
Administrator of the Small Business Administration. (For the purpose of 
this definition, the size standard contained in 13 CFR 121.901 through 
121.911 will be used.)
    (8) Subject Invention means any invention of a Recipient and/or 
Government employee conceived or first actually reduced to practice in 
the performance of work under this Agreement.
    (9) Manufactured substantially in the United States means the 
product must have over 50 percent of its components manufactured in the 
United States. This requirement is met if the cost to the Recipient of 
the components mined, produced, or manufactured in the United States 
exceeds 50 percent of the cost of all components required to make the 
product. (In making this determination only the product and its 
components shall be considered.) The cost of each component includes 
transportation costs to the place of incorporation into the product and 
any applicable duty (whether or not a duty-free entry certificate is 
issued). Components of foreign origin of the same class or kind for 
which determinations have been made in accordance with FAR 25.102(a)(3) 
and (4) are treated as domestic. Scrap generated, collected, and 
prepared for processing in the United States is considered domestic.
    (b) Allocation of principal rights.--(1) Recipient Inventions. For 
other than Small Business Firm or Nonprofit organization Recipients, the 
``PATENT RIGHTS--RETENTION BY RECIPIENT (LARGE BUSINESS)'' provision 
applies. For Small Business Firm and Nonprofit organization Recipients, 
the ``PATENT RIGHTS--RETENTION BY RECIPIENT (SMALL BUSINESS)'' provision 
applies.
    (2) NASA Inventions. NASA will use reasonable efforts to report 
inventions made by NASA employees as a consequence of, or which bear a 
direct relation to, the performance of specified NASA activities under 
this

[[Page 495]]

cooperative agreement and, upon timely request, NASA will use its best 
efforts to grant the Recipient or designated Consortium Member (if 
applicable) the first option to acquire either an exclusive or partially 
exclusive, revocable, royalty-bearing license, on terms to be 
subsequently negotiated, for any patent applications and patents 
covering such inventions, and subject to the license reserved in 
paragraph (b)(5)(i) of this section. Upon application in compliance with 
37 CFR Part 404--Licensing of Government Owned Inventions, the Recipient 
or each Consortium Member (if applicable), shall be granted a revocable, 
nonexclusive, royalty-free license in each patent application filed in 
any country on a subject invention and any resulting patent in which the 
Government acquires title. Each nonexclusive license may extend to 
subsidiaries and affiliates, if any, within the corporate structure of 
the licensee and includes the right to grant sublicenses of the same 
scope to the extent the licensee was legally obligated to do so at the 
time the cooperative agreement was signed.
    (3) NASA Contractor Inventions. In the event NASA contractors are 
tasked to perform work in support of specified NASA activities under 
this cooperative agreement and inventions are made by contractor 
employees, the recipient will normally retain title to its employee 
inventions in accordance with 35 U.S.C. 202, 14 CFR Part 1245, and E.O. 
12591. In the event the recipient decides not to pursue right to title 
in any such invention and NASA obtains title to such inventions, NASA 
will use reasonable efforts to report such inventions and, upon timely 
request, NASA will use its best efforts to grant the Recipient or 
designated Consortium Member (if applicable) the first option to acquire 
either an exclusive or partially exclusive, revocable, royalty-bearing 
license, upon terms to be subsequently negotiated, for any patent 
applications and patents covering such inventions, and subject to the 
license reserved in paragraph (b)(5)(ii) of this section. Upon 
application in compliance with 37 CFR Part 404--Licensing of Government 
Owned Inventions, the Recipient or each Consortium Member (if 
applicable), shall be granted a revocable, nonexclusive, royalty-free 
license in each patent application filed in any country on a subject 
invention and any resulting patent in which the Government acquires 
title. Each nonexclusive license may extend to subsidiaries and 
affiliates, if any, within the corporate structure of the licensee and 
includes the right to grant sublicenses of the same scope to the extent 
the licensee was legally obligated to do so at the time the cooperative 
agreement was signed.
    (4) Joint NASA and Recipient Inventions. NASA and Recipient agree to 
use reasonable efforts to identify and report to each other any 
inventions made jointly between NASA employees (or employees of NASA 
contractors) and employees of Recipient.
    (i) For other than small business firms and nonprofit organizations 
the Administrator may agree that the United States will refrain from 
exercising its undivided interest in a manner inconsistent with 
Recipient's commercial interest and to cooperate with Recipient in 
obtaining patent protection on its undivided interest on any waived 
inventions subject, however, to the condition that Recipient makes its 
best efforts to bring the invention to the point of practical 
application at the earliest practicable time. In the event that the 
Administrator determines that such efforts are not undertaken, the 
Administrator may void NASA's agreement to refrain from exercising its 
undivided interest and grant licenses for the practice of the invention 
so as to further its development. In the event that the Administrator 
decides to void NASA's agreement to refrain from exercising its 
undivided interest and grant licenses for this reason, notice shall be 
given to the Inventions and Contributions Board as to why such action 
should not be taken. Either alternative will be subject to the 
applicable license or licenses reserved in paragraph (b)(5) of this 
section.
    (ii) For small business firms and nonprofit organization, NASA may 
assign or transfer whatever rights it may acquire in a subject invention 
from its employee to the Recipient as authorized by 35 U.S.C. 202(e).
    (5) Minimum rights reserved by the Government. Any license or 
assignment granted Recipient pursuant to paragraphs (b)(2), (b)(3), or 
(b)(4) of this section will be subject to the reservation of the 
following licenses:
    (i) As to inventions made solely or jointly by NASA employees, the 
irrevocable, royalty-free right of the Government of the United States 
to practice and have practiced the invention by or on behalf of the 
United States; and
    (ii) As to inventions made solely by, or jointly with, employees of 
NASA contractors, the rights in the Government of the United States as 
set forth in paragraph (b)(5)(i) of this section, as well as the 
revocable, nonexclusive, royalty-free license in the contractor as set 
forth in 14 CFR 1245.108.
    (6) Preference for United States manufacture. The Recipient agrees 
that any products embodying subject inventions or produced through the 
use of subject inventions shall be manufactured substantially in the 
United States. However, in individual cases, the requirement to 
manufacture substantially in the United States may be waived by the 
Assistant Administrator for Procurement (Code HS) with the concurrence 
of the Associate General Counsel for Intellectual Property upon a 
showing by the Recipient that under the circumstances domestic 
manufacture is not commercially feasible.

[[Page 496]]

    (7) Work performed by the Recipient under this cooperative agreement 
is considered undertaken to carry out a public purpose of support and/or 
stimulation rather than for acquiring property or services for the 
direct benefit or use of the Government. Accordingly, such work by the 
Recipient is not considered ``by or for the United States'' and the 
Government assumes no liability for infringement by the Recipient under 
28 U.S.C. 1498.

                           [End of provision]



Sec. 1274.912  Patent rights--retention by the recipient (large business).

       Patent Rights--Retention by the Recipient (Large Business)

                                July 2002

    (a) Definitions.
    (1) Administrator, as used in this clause, means the Administrator 
of the National Aeronautics and Space Administration (NASA) or duly 
authorized representative.
    (2) Invention, as used in this clause, means any invention or 
discovery which is or may be patentable or otherwise protectable under 
title 35 of the U.S.C.
    (3) Made, as used in relation to any invention, means the conception 
or first actual reduction to practice such invention.
    (4) Nonprofit organization, as used in this clause, means a domestic 
university or other institution of higher education or an organization 
of the type described in section 501(c)(3) of the Internal Revenue Code 
of 1954 (26 U.S.C. 501(c)) and exempt from taxation under section 501(a) 
of the Internal Revenue Code (26 U.S.C. 501(a)), or any domestic 
nonprofit scientific or educational organization qualified under a State 
nonprofit organization statute.
    (5) Practical application, as used in this clause, means to 
manufacture, in the case of a composition or product; to practice, in 
the case of a process or method; or to operate, in case of a machine or 
system; and, in each, case, under such conditions as to establish that 
the invention is being utilized and that its benefits are, to the extent 
permitted by law or Government regulations, available to the public on 
reasonable terms.
    (6) Reportable item, as used in this clause, means any invention, 
discovery, improvement, or innovation of the Recipient, whether or not 
the same is or may be patentable or otherwise protectable under Title 35 
of the United States Code, conceived or first actually reduced to 
practice in the performance of any work under this contract or in the 
performance of any work that is reimbursable under any clause in this 
contract providing for reimbursement of costs incurred prior to the 
effective date of this contract.
    (7) Small business firm, as used in this clause, means a domestic 
small business concern as defined at 15 U.S.C. 632 and implementing 
regulations of the Administrator of the Small Business Administration. 
(For the purpose of this definition, the size standard contained in 13 
CFR 121.901 through 121.911 will be used.)
    (8) Subject invention, as used in this clause, means any reportable 
item which is or may be patentable or otherwise protectable under Title 
35 of the United States Code, or any novel variety of plant that is or 
may be protectable under the Plant Variety Protection Act (7 U.S.C. 
2321, et seq).
    (9) Manufactured substantially in the United States means the 
product must have over 50 percent of its components manufactured in the 
United States. This requirement is met if the cost to the Recipient of 
the components mined, produced, or manufactured in the United States 
exceeds 50 percent of the cost of all components required to make the 
product. (In making this determination only the product and its 
components shall be considered.) The cost of each component includes 
transportation costs to the place of incorporation into the product and 
any applicable duty (whether or not a duty-free entry certificate is 
issued). Components of foreign origin of the same class or kind for 
which determinations have been made in accordance with Federal 
Acquisition Regulation 25.102(a)(3) and (4) are treated as domestic. 
Scrap generated, collected, and prepared for processing in the United 
States is considered domestic.
    (b) Allocation of principal rights--(1) Presumption of title.
    (i) Any reportable item that the Administrator considers to be a 
subject invention shall be presumed to have been made in the manner 
specified in paragraph (1) or (2) of section 305(a) of the National 
Aeronautics and Space Act of 1958 (42 U.S.C. 2457(a)) (hereinafter 
called ``the Act''), and the above presumption shall be conclusive 
unless at the time of reporting the reportable item the Recipient 
submits to the Agreement Officer a written statement, containing 
supporting details, demonstrating that the reportable item was not made 
in the manner specified in paragraph (1) or (2) of section 305(a) of the 
Act.
    (ii) Regardless of whether title to a given subject invention would 
otherwise be subject to an advance waiver or is the subject of a 
petition for waiver, the Recipient may nevertheless file the statement 
described in paragraph (b)(1)(i) of this section. The Administrator will 
review the information furnished by the Recipient in any such statement 
and any other available information relating to the circumstances 
surrounding the making of the subject invention and will notify the 
Recipient whether the Administrator has determined that the subject 
invention was

[[Page 497]]

made in the manner specified in paragraph (1) or (2) of section 305(a) 
of the Act.
    (2) Property rights in subject inventions. Each subject invention 
for which the presumption of paragraph (b)(1)(i) of this section is 
conclusive or for which there has been a determination that it was made 
in the manner specified in paragraph (1) or (2) of section 305(a) of the 
Act shall be the exclusive property of the United States as represented 
by NASA unless the Administrator waives all or any part of the rights of 
the United States, as provided in paragraph (b)(3) of this section.
    (3) Waiver of rights. (i) Section 305(f) of the Act provides for the 
promulgation of regulations by which the Administrator may waive the 
rights of the United States with respect to any invention or class of 
inventions made or that may be made under conditions specified in 
paragraph (1) or (2) of section 305(a) of the Act. The promulgated NASA 
Patent Waiver Regulations, 14 CFR part 1245, subpart 1, have adopted the 
Presidential memorandum on Government Patent Policy of February 18, 
1983, as a guide in acting on petitions (requests) for such waiver of 
rights.
    (ii) As provided in 14 CFR part 1245, subpart 1, Recipients may 
petition, either prior to execution of the Agreement or within 30 days 
after execution of the Agreement, for advance waiver of rights to any or 
all of the inventions that may be made under an Agreement. If such a 
petition is not submitted, or if after submission it is denied, the 
Recipient (or an employee inventor of the Recipient may petition for 
waiver of rights to an identified subject invention within eight months 
of first disclosure of invention in accordance with paragraph (e)(2) of 
this section or within such longer period as may be authorized in 
accordance with 14 CFR 1245.105. Further procedures are provided in the 
REQUESTS FOR WAIVER OF RIGHTS--LARGE BUSINESS provision.
    (c) Minimum rights reserved by the Government. (1) With respect to 
each Recipient subject invention for which a waiver of rights is 
applicable in accordance with 14 CFR part 1245, subpart 1, the 
Government reserves--
    (i) An irrevocable, royalty-free license for the practice of such 
invention throughout the world by or on behalf of the United States or 
any foreign government in accordance with any treaty or agreement with 
the United States; and
    (ii) Such other rights as stated in 14 CFR 1245.107.
    (2) Nothing contained in this paragraph shall be considered to grant 
to the Government any rights with respect to any invention other than a 
subject invention.
    (d) Minimum rights to the Recipient. (1) The Recipient is hereby 
granted a revocable, nonexclusive, royalty-free license in each patent 
application filed in any country on a Recipient subject invention and 
any resulting patent in which the Government acquires title, unless the 
Recipient fails to disclose the subject invention within the times 
specified in paragraph (e)(2) of this section. The Recipient's license 
extends to its domestic subsidiaries and affiliates, if any, within the 
corporate structure of which the Recipient is a party and includes the 
right to grant sublicenses of the same scope to the extent the Recipient 
was legally obligated to do so at the time the contract was awarded. The 
license is transferable only with the approval of the Administrator 
except when transferred to the successor of that part of the Recipient's 
business to which the invention pertains.
    (2) The Recipient's domestic license may be revoked or modified by 
the Administrator to the extent necessary to achieve expeditious 
practical application of the subject invention pursuant to an 
application for an exclusive license submitted in accordance with 14 CFR 
part 1245, subpart 3, Licensing of NASA Inventions. This license will 
not be revoked in that field of use or the geographical areas in which 
the Recipient has achieved practical application and continues to make 
the benefits of the invention reasonably accessible to the public. The 
license in any foreign country may be revoked or modified at the 
discretion of the Administrator to the extent the Recipient, its 
licensees, or its domestic subsidiaries or affiliates have failed to 
achieve practical application in that foreign country.
    (3) Before revocation or modification of the license, the Recipient 
will be provided a written notice of the Administrator's intention to 
revoke or modify the license, and the Recipient will be allowed 30 days 
(or such other time as may be authorized by the Administrator for good 
cause shown by the Recipient) after the notice to show cause why the 
license should not be revoked or modified. The Recipient has the right 
to appeal, in accordance with 14 CFR 1245.112, any decision concerning 
the revocation or modification of its license.
    (e) Invention identification, disclosures, and reports. (1) The 
Recipient shall establish and maintain active and effective procedures 
to assure that reportable items are promptly identified and disclosed to 
Recipient personnel responsible for the administration of this clause 
within six months of conception and/or first actual reduction to 
practice, whichever occurs first in the performance of work under this 
contract. These procedures shall include the maintenance of laboratory 
notebooks or equivalent records and other records as are reasonably 
necessary to document the conception and/or the first actual reduction 
to practice of the reportable items, and records that show that the 
procedures for identifying and disclosing reportable items are followed. 
Upon request, the

[[Page 498]]

Recipient shall furnish the Agreement Officer a description of such 
procedures for evaluation and for determination as to their 
effectiveness.
    (2) The Recipient will disclose each reportable item to the 
Agreement Officer within two months after the inventor discloses it in 
writing to Recipient personnel responsible for the administration of 
this clause or, if earlier, within six months after the Recipient 
becomes aware that a reportable item has been made, but in any event for 
subject inventions before any on sale, public use, or publication of 
such invention known to the Recipient. The disclosure to the agency 
shall be in the form of a written report and shall identify the 
Agreement under which the reportable item was made and the inventor(s) 
or innovator(s). It shall be sufficiently complete in technical detail 
to convey a clear understanding, to the extent known at the time of the 
disclosure, of the nature, purpose, operation, and physical, chemical, 
biological, or electrical characteristics of the reportable item. The 
disclosure shall also identify any publication, on sale, or public use 
of any subject invention and whether a manuscript describing such 
invention has been submitted for publication and, if so, whether it has 
been accepted for publication at the time of disclosure. In addition, 
after disclosure to the agency, the Recipient will promptly notify the 
agency of the acceptance of any manuscript describing a subject 
invention for publication or of any on sale or public use planned by the 
Recipient for such invention.
    (3) The Recipient shall furnish the Agreement Officer the following:
    (i) Interim reports every 12 months (or such longer period as may be 
specified by the Agreement Officer) from the date of the Agreement, 
listing reportable items during that period, and certifying that all 
reportable items have been disclosed (or that there are no such 
inventions) and that the procedures required by paragraph (e)(1) of this 
section have been followed.
    (ii) A final report, within three months after completion of the 
work, listing all reportable items or certifying that there were no such 
reportable items, and listing all subcontracts at any tier containing a 
patent rights clause or certifying that there were no such subcontracts.
    (4) The Recipient agrees, upon written request of the Agreement 
Officer, to furnish additional technical and other information available 
to the Recipient as is necessary for the preparation of a patent 
application on a subject invention and for the prosecution of the patent 
application, and to execute all papers necessary to file patent 
applications on subject inventions and to establish the Government's 
rights in the subject inventions.
    (5) The Recipient agrees, subject to 48 CFR (FAR) 27.302(j), that 
the Government may duplicate and disclose subject invention disclosures 
and all other reports and papers furnished or required to be furnished 
pursuant to this clause.
    (f) Examination of records relating to inventions. (1) The Agreement 
Officer or any authorized representative shall, pursuant to the 
Retention and Examination of Records provision of this cooperative 
agreement, have the right to examine any books (including laboratory 
notebooks), records, and documents of the Recipient relating to the 
conception or first actual reduction to practice of inventions in the 
same field of technology as the work under this contract to determine 
whether--
    (i) Any such inventions are subject inventions;
    (ii) The Recipient has established and maintained the procedures 
required by paragraph (e)(1) of this section; and
    (iii) The Recipient and its inventors have complied with the 
procedures.
    (2) If the Agreement Officer learns of an unreported Recipient 
invention that the Agreement Officer believes may be a subject 
inventions, the Recipient may be required to disclose the invention to 
the agency for a determination of ownership rights.
    (3) Any examination of records under this paragraph will be subject 
to appropriate conditions to protect the confidentiality of the 
information involved.
    (g) Subcontracts. (1) Unless otherwise authorized or directed by the 
Agreement Officer, the Recipient shall--
    (i) Include this Clause Patent Rights--Retention by the Recipient--
(Large Business) (suitably modified to identify the parties) in any 
subcontract hereunder (regardless of tier) with other than a small 
business firm or nonprofit organization for the performance of 
experimental, developmental, or research work; and
    (ii) Include the clause Patent Right--Retention by the Recipient--
(Small Business) (suitably modified to identify the parties) in any 
subcontract hereunder (regardless of tier) with a small business firm or 
nonprofit organization for the performance of experimental, 
developmental, or research work.
    (2) In the event of a refusal by a prospective subcontractor to 
accept such a clause the Recipient--
    (i) Shall promptly submit a written notice to the Agreement Officer 
setting forth the subcontractor's reasons for such refusal and other 
pertinent information that may expedite disposition of the matter; and
    (ii) Shall not proceed with such subcontract without the written 
authorization of the Agreement Officer.
    (3) The Recipient shall promptly notify the Agreement Officer in 
writing upon the award of any subcontract at any tier containing a 
patent rights clause by identifying the subcontractor, the applicable 
patent rights

[[Page 499]]

clause, the work to be performed under the subcontract, and the dates of 
award and estimated completion. Upon request of the Agreement Officer, 
the Recipient shall furnish a copy of such subcontract, and, no more 
frequently than annually, a listing of the subcontracts that have been 
awarded.
    (4) The subcontractor will retain all rights provided for the 
Recipient in the clause of paragraph (g)(1)(i) or (1)(ii) of this 
section, whichever is included in the subcontract, and the Recipient 
will not, as part of the consideration for awarding the subcontract, 
obtain rights in the subcontractor's subject inventions.
    (5) Notwithstanding paragraph (g)(4) of this section, and in 
recognition of the contractor's substantial contribution of funds, 
facilities and/or equipment to the work performed under this cooperative 
agreement, the Recipient is authorized, subject to the rights of NASA 
set forth elsewhere in this clause, to:
    (i) Acquire by negotiation and mutual agreement rights to a 
subcontractor's subject inventions as the Recipient may deem necessary 
to obtaining and maintaining of such private support; and
    (ii) Request, in the event of inability to reach agreement pursuant 
to paragraph (g)(5)(i) of this section, that NASA invoke exceptional 
circumstances as necessary pursuant to 37 CFR 401.3(a)(2) if the 
prospective subcontractor is a small business firm or organization, or 
for all other organizations, request that such rights for the Recipient 
be included as an additional reservation in a waiver granted pursuant to 
14 CFR part 1245, subpart 1. Any such requests to NASA should be 
prepared in consideration of the following guidance and submitted to the 
contract officer.
    (A) Exceptional circumstances. A request that NASA make an 
``exceptional circumstances'' determination pursuant to 37 CFR 
401.3(a)(2) must state the scope of rights sought by the Recipient 
pursuant to such determination; identify the proposed subcontractor and 
the work to be performed under the subcontract; and state the need for 
the determination.
    (B) Waiver petition. The subcontractor should be advised that unless 
it requests a waiver of title pursuant to the NASA Patent Waiver 
Regulations (14 CFR part 1245, subpart 1), NASA will acquire title to 
the subject invention (42 U.S.C. 2457, as amended, sec. 305). If a 
waiver is not requested or granted, the Recipient may request a license 
from NASA (see licensing of NASA inventions, 14 CFR part 1245, subpart 
3). A subcontractor requesting a waiver must follow the procedures set 
forth in the attached clause REQUESTS FOR WAIVER OF RIGHTS--LARGE 
BUSINESS.
    (h) Preference for United States manufacture. The Recipient agrees 
that any products embodying subject inventions or produced through the 
use of subject inventions shall be manufactured substantially in the 
United States. However, in individual cases, the requirement to 
manufacture substantially in the United States may be waived by the 
Assistant Administrator for Procurement (Code HS) with the concurrence 
of the Associate General Counsel for Intellectual Property upon a 
showing by the Recipient that under the circumstances domestic 
manufacture is not commercially feasible.
    (i) March-in rights. The Recipient agrees that, with respect to any 
subject invention in which it has acquired title, NASA has the right in 
accordance with the procedures in 37 CFR 401.6 and any supplemental 
regulations of the agency to require the Recipient, an assignee or 
exclusive licensee of a subject invention to grant a nonexclusive, 
partially exclusive, or exclusive license in any field of use to a 
responsible applicant or applicants, upon terms that are reasonable 
under the circumstances, and if the Subcontractor, assignee, or 
exclusive licensee refuses such a request NASA has the right to grant 
such a license itself if the Federal agency determines that--
    (1) Such action is necessary because the Recipient or assignee has 
not taken, or is not expected to take within a reasonable time, 
effective steps to achieve practical application of the subject 
invention in such field of use;
    (2) Such action is necessary to alleviate health or safety needs 
which are not reasonably satisfied by the Recipient, assignee, or their 
licensees;
    (3) Such action is necessary to meet requirements for public use 
specified by Federal regulations and such requirements are not 
reasonably satisfied by the Recipient, assignee, or licensees; or
    (4) Such action is necessary because the agreement required by 
paragraph (i) of this clause has not been obtained or waived or because 
a licensee of the exclusive right to use or sell any subject invention 
in the United States is in breach of such agreement.

                           [End of provision]



Sec. 1274.913  Patent rights--retention by the recipient (small business).

       Patent Rights--Retention by the Recipient (Small Business)

                                July 2002

    (a) Definitions.
    (1) Invention, as used in this clause, means any invention or 
discovery which is or may be patentable or otherwise protectable under 
title 35 of the U.S.C.

[[Page 500]]

    (2) Made, as used in this clause, when used in relation to any 
invention means the conception or first actual reduction to practice 
such invention.
    (3) Nonprofit organization, as used in this clause, means a 
university or other institution of higher education or an organization 
of the type described in section 501(c)(3) of the Internal Revenue Code 
of 1954 (26 U.S.C. 501(c)) and exempt from taxation under section 501(a) 
of the Internal Revenue Code (26 U.S.C. 501(a)) or any nonprofit 
scientific or educational organization qualified under a state nonprofit 
organization statute.
    (4) Practical application, as used in this clause, means to 
manufacture, in the case of a composition of product; to practice, in 
the case of a process or method, or to operate, in the case of a machine 
or system; and, in each case, under such conditions as to establish that 
the invention is being utilized and that its benefits are, to the extent 
permitted by law or Government regulations, available to the public on 
reasonable terms.
    (5) Small business firm, as used in this clause, means a small 
business concern as defined at Section 2 of Pub. L. 85-536 (15 U.S.C. 
632) and implementing regulations of the Administrator of the Small 
Business Administration. For the purpose of this clause, the size 
standards for small business concerns involved in Government procurement 
and subcontracting at 13 CFR 121.901 through 121.911 will be used.
    (6) Subject invention, as used in this clause, means any invention 
of the Subcontractor conceived or first actually reduced to practice in 
the performance of work under this Agreement.
    (7) Manufactured substantially in the United States means the 
product must have over 50 percent of its components manufactured in the 
United States. This requirement is met if the cost to the Recipient of 
the components mined, produced, or manufactured in the United States 
exceeds 50 percent of the cost of all components required to make the 
product. (In making this determination only the product and its 
components shall be considered.) The cost of each component includes 
transportation costs to the place of incorporation into the product and 
any applicable duty (whether or not a duty-free entry certificate is 
issued). Components of foreign origin of the same class or kind for 
which determinations have been made in accordance with FAR 25.102(a)(3) 
and (4) are treated as domestic. Scrap generated, collected, and 
prepared for processing in the United States is considered domestic.
    (b) Allocation of principal rights. The Recipient may retain the 
entire right, title, and interest throughout the world to each subject 
invention subject to the provisions of this clause and 35 U.S.C. 203. 
With respect to any subject invention in which the Recipient retains 
title, the Federal Government shall have a nonexclusive, 
nontransferable, irrevocable, paid-up license to practice or have 
practiced for or on behalf of the United States the subject invention 
throughout the world.
    (c) Invention disclosure, election of title, and filing of patent 
application by Recipient.
    (1) The Recipient will disclose each subject invention to NASA 
within two months after the inventor discloses it in writing to 
Recipient personnel responsible for patent matters. The disclosure to 
the agency shall be in the form of a written report and shall identify 
the contract under which the invention was made and the inventor(s). It 
shall be sufficiently complete in technical detail to convey a clear 
understanding to the extent known at the time of the disclosure, of the 
nature, purpose, operation, and the physical, chemical, biological or 
electrical characteristics of the invention. The disclosure shall also 
identify any publication, on sale or public use of the invention and 
whether a manuscript describing the invention has been submitted for 
publication and, if so, whether it has been accepted for publication at 
the time of disclosure. In addition, after disclosure to the agency, the 
Recipient will promptly notify the agency of the acceptance of any 
manuscript describing the invention for publication or of any sale or 
public use planned by the Recipient.
    (2) The Recipient will elect in writing whether or not to retain 
title to any such invention by notifying NASA within two years of 
disclosure to the Federal agency. However, in any case where 
publication, on sale or public use has initiated the one-year statutory 
period wherein valid patent protection can still be obtained in the 
United States, the period for election of title may be shortened by the 
agency to a date that is no more than 60 days prior to the end of the 
statutory period.
    (3) The Recipient will file its initial patent application on a 
subject invention to which it elects to retain title within one year 
after election of title or, if earlier, prior to the end of any 
statutory period wherein valid patent protection can be obtained in the 
United States after a publication, on sale, or public use. The Recipient 
will file patent applications in additional countries or international 
patent offices within either 10 months of the corresponding initial 
patent application of six months from the date permission is granted by 
the Commissioner of Patents and Trademarks to file foreign patent 
applications where such filing has been prohibited by a Secrecy Order.
    (4) Requests for extension of the time for disclosure election, and 
filing under paragraphs (c)(1), (2), and (3) of this section may, at the 
discretion of the agency, be granted.
    (d) Conditions when the Government may obtain title. The Recipient 
will convey to

[[Page 501]]

NASA, upon written request, title to any subject invention--
    (1) If the Recipient fails to disclose or elect title to the subject 
invention within the times specified in paragraph (c) of this section, 
or elects not to retain title; provided, that the agency may only 
request title within 60 days after learning of the failure of the 
Recipient to disclose or elect within the specified times.
    (2) In those countries in which the Recipient fails to file patent 
applications within the times specified in paragraph (c) of this 
section; provided, however, that if the Recipient has filed a patent 
application in a country after the times specified in paragraph (c) of 
this section, but prior to its receipt of the written request of the 
Federal agency, the Recipient shall continue to retain title in that 
country.
    (3) In any country in which the Recipient decides not to continue 
the prosecution of any application for, to pay the maintenance fees on, 
or defend in reexamination or opposition proceeding on, a patent on a 
subject invention.
    (e) Minimum rights to Recipient and protection of the Recipient 
right to file.
    (1) The Recipient will retain a nonexclusive, royalty-free license 
throughout the world in each subject invention to which the Government 
obtains title, except if the Recipient fails to disclose the invention 
within the times specified in paragraph (c) of this section. The 
Recipient's license extends to its domestic subsidiary and affiliates, 
if any, within the corporate structure of which the Recipient is a party 
and includes the right to grant sublicenses of the same scope to the 
extent the Recipient was legally obligated to do so at the time the 
agreement was awarded. The license is transferable only with the 
approval of NASA, except when transferred to the successor of that part 
of the Recipient's business to which the invention pertains.
    (2) The Contractor's domestic license may be revoked or modified by 
NASA to the extent necessary to achieve expeditious practical 
application of subject invention pursuant to an application for an 
exclusive license submitted in accordance with applicable provisions at 
37 CFR Part 404 and agency licensing regulations (if any). This license 
will not be revoked in that field of use or the geographical areas in 
which the Subcontractor has achieved practical application and continues 
to make the benefits of the invention reasonable accessible to the 
public. The license in any foreign country may be revoked or modified at 
the discretion of NASA to the extent the Subcontractor, its licensees, 
or the domestic subsidiaries or affiliates have failed to achieve 
practical application in that foreign country.
    (3) Before revocation or modification of the license, NASA will 
furnish the Recipient a written notice of its intention to revoke or 
modify the license, and the Recipient will be allowed 30 days (or such 
other time as may be authorized by NASA for good cause shown by the 
Recipient) after the notice to show cause why the license should not be 
revoked or modified. The Recipient has the right to appeal, in 
accordance with applicable regulations in 37 CFR Part 404 and 14 CFR 
Subpart 1245.1, concerning the licensing of Government-owned inventions, 
any decision concerning the revocation or modification of the license.
    (f) Recipient action to protect the Government's interest. (1) The 
Recipient agrees to execute or to have executed and promptly deliver to 
NASA all instruments necessary to:
    (i) establish or confirm the rights the Government has throughout 
the world in those subject inventions to which the Subcontractor elects 
to retain title, and,
    (ii) convey title to the Federal agency when requested under 
paragraph (d) of this section and to enable the Government to obtain 
patent protection throughout the world in that subject invention.
    (2) The Recipient agrees to require, by written agreement, its 
employees, other than clerical and nontechnical employees, to disclose 
promptly in writing to personnel identified as responsible for the 
administration of patent matters and in a format suggested by the 
Recipient each subject invention made under contract in order that the 
Recipient can comply with the disclosure provisions of paragraph (c) of 
this section, and to execute all papers necessary to file patent 
applications on subject inventions and to establish the Government's 
rights in the subject inventions. This disclosure format should require, 
as a minimum, the information required by paragraph (c)(1) of this 
section. The Recipient shall instruct such employees, through employee 
agreements or other suitable educational programs, on the importance of 
reporting inventions in sufficient time to permit the filing of patent 
applications prior to U.S. or foreign statutory bars.
    (3) The Recipient will notify NASA of any decisions not to continue 
the prosecution of a patent application, pay maintenance fees, or defend 
in a reexamination or opposition proceeding on a patent, in any country, 
not less than 30 days before the expiration of the response period 
required by the relevant patent office.
    (4) The Recipient agrees to include, within the specification of any 
United States patent application and any patent issuing thereon covering 
a subject invention the following statement, ``This invention was made 
with Government support under (identify the agreement) awarded by NASA. 
The Government has certain rights in the invention.''

[[Page 502]]

    (5) The Recipient shall provide the Agreement Officer the following:
    (i) A listing every 12 months (or such longer period as the 
Agreement Officer may specify) from the date of the Agreement, of all 
subject inventions required to be disclosed during the period.
    (ii) A final report prior to closeout of the Agreement listing all 
subject inventions or certifying that there were none.
    (iii) Upon request, the filing date, serial number, and title, a 
copy of the patent application, and patent number and issue date for any 
subject invention in any country in which the Recipient has applied for 
patents.
    (iv) An irrevocable power to inspect and make copies of the patent 
application file, by the Government, when a Federal Government employee 
is a co-inventor.
    (g) Subcontracts. (1) Unless otherwise authorized or directed by the 
Agreement Officer, the Recipient shall--
    (i) Include this clause (Patent Rights--Retention by the Recipient 
(Small Business)), suitably modified to identify the parties, in all 
subcontracts, regardless of tier, for experimental, developmental, or 
research work to be performed by a small business firm or domestic 
nonprofit organization; and
    (ii) Include in all other subcontracts, regardless of tier, for 
experimental, developmental, or research work the patent rights clause 
(Patent Rights--Retention by the Recipient (Large Business).
    (2) In the event of a refusal by a prospective subcontractor to 
accept such a clause the Recipient--
    (i) Shall promptly submit a written notice to the Agreement Officer 
setting forth the subcontractor's reasons for such refusal and other 
pertinent information that may expedite disposition of the matter; and
    (ii) Shall not proceed with such subcontract without the written 
authorization of the Agreement Officer.
    (3) The Recipient shall promptly notify the Agreement Officer in 
writing upon the award of any subcontract at any tier containing a 
patent rights clause by identifying the subcontractor, the applicable 
patent rights clause, the work to be performed under the subcontract, 
and the dates of award and estimated completion. Upon request of the 
Agreement Officer, the Recipient shall furnish a copy of such 
subcontract, and, no more frequently than annually, a listing of the 
subcontracts that have been awarded.
    (4) The subcontractor will retain all rights provided for the 
Recipient in the clause under paragraph (g)(1)(i) or (g)(1)(ii) of this 
section, whichever is included in the subcontract, and the Recipient 
will not, as part of the consideration for awarding the subcontract, 
obtain rights in the subcontractor's subject inventions.
    (5) Notwithstanding paragraph (g)(4) of this section, and in 
recognition of the contractor's substantial contribution of funds, 
facilities and/or equipment to the work performed under this cooperative 
agreement, the Recipient is authorized, subject to the rights of NASA 
set forth elsewhere in this clause, to--
    (i) Acquire by negotiation and mutual agreement rights to a 
subcontractor's subject inventions as the Recipient may deem necessary 
to obtaining and maintaining of such private support; and
    (ii) Request, in the event of inability to reach agreement pursuant 
to paragraph (g)(5)(i) of this section that NASA invoke exceptional 
circumstances as necessary pursuant to 37 CFR 401.3(a)(2) if the 
prospective subcontractor is a small business firm or organization, or 
for all other organizations, request that such rights for the Recipient 
be included as an additional reservation in a waiver granted pursuant to 
14 CFR part 1245, subpart 1. Any such requests to NASA should be 
prepared in consideration of the following guidance and submitted to the 
contract office:
    (A) Exceptional circumstances. A request that NASA make an 
``exceptional circumstances'' determination pursuant to 37 CFR 
401.3(a)(2) must state the scope of rights sought by the Recipient 
pursuant to such determination; identify the proposed subcontractor and 
the work to be performed under the subcontract; and state the need for 
the determination.
    (B) Waiver petition. The subcontractor should be advised that unless 
it requests a waiver of title pursuant to the NASA Patent Waiver 
Regulations (14 CFR part 1245, subpart 1), NASA will acquire title to 
the subject invention (42 U.S.C. 2457, as amended, sec. 305). If a 
waiver is not requested or granted, the Recipient may request a license 
from NASA (see licensing of NASA inventions, 14 CFR part 1245, subpart 
3). A subcontractor requesting a waiver must follow the procedures set 
forth in the REQUESTS FOR WAIVER OF RIGHTS--LARGE BUSINESS provision.
    (h) Reporting on utilization of subject inventions. The Recipient 
agrees to submit, on request, periodic reports no more frequently than 
annually on the utilization of a subject invention or on efforts at 
obtaining such utilization that are being made by the Recipient or its 
licensees or assignees. Such reports shall include information regarding 
the status of development, date of first commercial sale or use, gross 
royalties received by the Recipient, and such other data and information 
as the agency may reasonably specify. The Recipient also agrees to 
provide additional reports as may be requested by the agency in 
connection with any march-in proceeding under-taken by the agency in 
accordance with paragraph (i) of this section. As required by 35 U.S.C. 
202(c)(5), the agency agrees it will not disclose such information

[[Page 503]]

to persons outside the Government without permission of the Recipient.
    (i) Preference for United States manufacture. The Recipient agrees 
that any products embodying subject inventions or produced through the 
use of subject inventions shall be manufactured substantially in the 
United States. However, in individual cases, the requirement to 
manufacture substantially in the United States may be waived by the 
Assistant Administrator for Procurement (Code HS) with the concurrence 
of the Associate General Counsel for Intellectual Property upon a 
showing by the Recipient that under the circumstances domestic 
manufacture is not commercially feasible.
    (j) March-in rights. The Recipient agrees that, with respect to any 
subject invention in which it has acquired title, NASA has the right in 
accordance with the procedures in 37 CFR 401.6 and any supplemental 
regulations of the agency to require the Recipient, an assignee or 
exclusive licensee of a subject invention to grant a nonexclusive, 
partially exclusive, or exclusive license in any field of use to a 
responsible applicant or applicants, upon terms that are reasonable 
under the circumstances, and if the Subcontractor, assignee, or 
exclusive licensee refuses such a request NASA has the right to grant 
such a license itself if the Federal agency determines that--
    (1) Such action is necessary because the Recipient or assignee has 
not taken, or is not expected to take within a reasonable time, 
effective steps to achieve practical application of the subject 
invention in such field of use;
    (2) Such action is necessary to alleviate health or safety needs 
which are not reasonably satisfied by the Recipient, assignee, or their 
licensees;
    (3) Such action is necessary to meet requirements for public use 
specified by Federal regulations and such requirements are not 
reasonably satisfied by the Recipient, assignee, or licensees; or
    (4) Such action is necessary because the agreement required by 
paragraph (i) of this section has not been obtained or waived or because 
a licensee of the exclusive right to use or sell any subject invention 
in the United States is in breach of such agreement.
    (k) Special provisions for Agreements with nonprofit organizations. 
If the Recipient is a nonprofit organization, it agrees that--
    (1) Rights to a subject invention in the United States may not be 
assigned without the approval of NASA, except where such assignment is 
made to an organization which has one of its primary functions the 
management of inventions; provided, that such assignee will be subject 
to the same provisions as the Recipient;
    (2) The Recipient will share royalties collected on a subject 
invention with the inventor, including Federal employee co-inventors 
(when NASA deems it appropriate) when the subject invention is assigned 
in accordance with 35 U.S.C. 202(e) and 37 CFR 401.10;
    (3) The balance of any royalties or income earned by the Recipient 
with respect to subject inventions, after payment of expenses (including 
payments to inventors) incidental to the administration of subject 
inventions will be utilized for the support of scientific research or 
education; and
    (4) It will make efforts that are reasonable under the circumstances 
to attract licensees of subject inventions that are small business 
firms, and that it will give a preference to a small business firm when 
licensing a subject invention if the Recipient determines that the small 
business firm has a plan or proposal for marketing the invention which, 
if executed, is equally as likely to bring the invention to practical 
application as any plans or proposals from applicants that are not small 
business firms; provided that the Recipient is also satisfied that the 
small business firm has the capability and resources to carry out its 
plan or proposal. The decision whether to give a preference in any 
specific case will be at the discretion of the Recipient. However, the 
Recipient agrees that the Secretary of Commerce may review the 
Contractor's licensing program and decisions regarding small business 
applicants, and the Recipient will negotiate changes to its licensing 
policies, procedures, or practices with the Secretary of Commerce when 
the Secretary's review discloses that the Recipient could take 
reasonable steps to more effectively implement the requirements of this 
paragraph.
    (l) Documentation submissions. A copy of all submissions or requests 
required by this clause, plus a copy of any reports, manuscripts, 
publications, or similar material bearing on patent matters, shall be 
sent to the installation Patent Counsel in addition to any other 
submission requirements in the cooperative agreement. If any reports 
contain information describing a ``subject invention'' for which the 
Recipient has elected or may elect title, NASA will use reasonable 
efforts to delay public release by NASA or publication by NASA in a NASA 
technical series, in order for a patent application to be filed, 
provided that the Recipient identify the information and the ``subject 
invention'' to which it relates at the time of submittal. If required by 
the Agreement Officer, the Recipient shall provide the filing date, 
serial number and title, a copy of the patent application, and a patent 
number and issue date for any ``subject invention'' in any country in 
which the Recipient has applied for patents.

[[Page 504]]

                           [End of provision]



Sec. 1274.914  Requests for waiver of rights--large business.

              Requests for Waiver of Rights--Large Business

                                July 2002

    (a) In accordance with the NASA Patent Waiver Regulations, 14 CFR 
part 1245, subpart 1, waiver of rights to any or all inventions made or 
that may be made under a NASA agreement, contract or subcontract with 
other than a small business firm or a domestic nonprofit organization 
may be requested at different time periods. Advance waiver of rights to 
any or all inventions that may be made under a contract or subcontract 
may be requested prior to the execution of the agreement, contract or 
subcontract, or within 30 days after execution by the selected 
Recipient. In addition, waiver of rights to an identified invention made 
and reported under a agreement, contract or subcontract may be 
requested, even though a request for an advance waiver was not made or, 
if made, was not granted.
    (b) Each request for waiver of rights shall be by petition to the 
Administrator and shall include an identification of the petitioner; 
place of business and address; if petitioner is represented by counsel, 
the name, address, and telephone number of the counsel; the signature of 
the petitioner or authorized representative; and the date of signature. 
No specific forms need be used, but the request should contain a 
positive statement that waiver of rights is being requested under the 
NASA Patent Waiver Regulations; a clear indication of whether the 
request is for an advance waiver or for a waiver of rights for an 
individual identified invention; whether foreign rights are also 
requested and, if so, the countries, and a citation of the specific 
Section or Sections of the regulations under which such rights are 
requested; and the name, address, and telephone number of the party with 
whom to communicate when the request is acted upon. Requests for advance 
waiver of rights should, preferably, be included with the proposal, but 
in any event in advance of negotiations.
    (c) Petitions for advance waiver, prior to agreement execution, must 
be submitted to the Agreement Officer. All other petitions will be 
submitted to the Patent Representative designated in the contract.
    (d) Petitions submitted with proposals selected for negotiation of a 
agreement will be forwarded by the Contracting or Officer to the 
installation Patent Counsel for processing and then to the Inventions 
and Contributions Board. The Board will consider these petitions and 
where the Board makes the findings to support the waiver, the Board will 
recommend to the Administrator that waiver be granted, and will notify 
the petitioner and the Agreement Officer of the Administrator's 
determination. The Agreement Officer will be informed by the Board 
whenever there is insufficient time or information or other reasons to 
permit a decision to be made without unduly delaying the execution of 
the agreement. In the latter event, the petitioner will be so notified 
by the Agreement Officer. All other petitions will be processed by 
installation Patent Counsel and forwarded to the Board. The Board shall 
notify the petitioner of its action and if waiver is granted, the 
conditions, reservations, and obligations thereof will be included in 
the Instrument of Waiver. Whenever the Board notifies a petitioner of a 
recommendation adverse to, or different from, the waiver requested, the 
petitioner may request reconsideration under procedures set forth in the 
Regulations.

                           [End of provision]



Sec. 1274.915  Restrictions on sale or transfer of technology to foreign firms or institutions.

   Restrictions on Sale or Transfer of Technology to Foreign Firms or 
                              Institutions

                                July 2002

    (a) The parties agree that access to technology developments under 
this Agreement by foreign firms or institutions must be carefully 
controlled. For purposes of this clause, a transfer includes a sale of 
the company, or sales or licensing of the technology. Transfers include:
    (1) Sales of products or components,
    (2) Licenses of software or documentation related to sales of 
products or components, or
    (3) Transfers to foreign subsidiaries of the Recipient for purposes 
related to this Agreement.
    (b) The Recipient shall provide timely notice to the Agreement 
Officer in writing of any proposed transfer of technology developed 
under this Agreement. If NASA determines that the transfer may have 
adverse consequences to the national security interests of the United 
States, or to the establishment of a robust United States industry, NASA 
and the Recipient shall jointly endeavor to find alternatives to the 
proposed transfer which obviate or mitigate potential adverse 
consequences of the transfer.

                           [End of provision]



Sec. 1274.916  Liability and risk of loss.

    The following provision is applicable to all cooperative agreements 
with commercial firms, except programs or projects that are subject to 
Section 431

[[Page 505]]

of Public Law 105-276, which addresses insurance for, or indemnification 
of, developers of experimental aerospace vehicles.

                       Liability and Risk of Loss

                                July 2002

    (a) With regard to activities undertaken pursuant to this agreement, 
neither party shall make any claim against the other, employees of the 
other, the other's related entities (e.g., contractors, subcontractors, 
etc.), or employees of the other's related entities for any injury to or 
death of its own employees or employees of its related entities, or for 
damage to or loss of its own property or that of its related entities, 
whether such injury, death, damage or loss arises through negligence or 
otherwise, except in the case of willful misconduct.
    (b) To the extent that a risk of damage or loss is not dealt with 
expressly in this agreement, each party's liability to the other party 
arising out of this Agreement, whether or not arising as a result of an 
alleged breach of this Agreement, shall be limited to direct damages 
only, and shall not include any loss of revenue or profits or other 
indirect or consequential damages.

                           [End of provision]



Sec. 1274.917  Additional funds.

                            Additional Funds

                                July 2002

    Pursuant to this Agreement, NASA is providing a fixed amount of 
funding for activities to be undertaken under the terms of this 
cooperative agreement. NASA is under no obligation to provide additional 
funds. Under no circumstances shall the Recipient undertake any action 
which could be construed to imply an increased commitment on the part of 
NASA under this cooperative agreement.

                           [End of provision]



Sec. 1274.918  Incremental funding.

                           Incremental Funding

                                July 2002

    (a) Of the award amount indicated on the cover page of this 
Agreement, only the obligated amount indicated on the cover page of this 
agreement is available for payment. NASA may supplement the Agreement, 
as required, until it is fully funded. Any work beyond the funding limit 
will be at the recipient's risk.
    (b) These funds will be obligated as appropriated funds become 
available without any action required of the Recipient. NASA is not 
obligated to make payments in excess of the total funds obligated.

                           [End of provision]



Sec. 1274.919  Cost principles and accounting standards.

                Cost Principles and Accounting Standards

                                July 2002

    The expenditure of Government funds by the Recipient and the 
allowability of costs recognized as a resource contribution by the 
Recipient (See clause entitled ``Resource Sharing Requirements'') shall 
be governed by the FAR cost principles implemented by FAR Parts 30, 31, 
and 48 CFR part 99. (If the Recipient is a consortium which includes 
non-commercial firm members, cost allowability for those members will be 
determined as follows: Allowability of costs incurred by State, local or 
federally-recognized Indian tribal governments is determined in 
accordance with the provisions of OMB Circular A-87, ``Cost Principles 
for State and Local Governments.'' The allowability of costs incurred by 
non-profit organizations is determined in accordance with the provisions 
of OMB Circular A-122, ``Cost Principles for Non-Profit Organizations.'' 
The allowability of costs incurred by institutions of higher education 
is determined in accordance with the provisions of OMB Circular A-21, 
``Cost Principles for Educational Institutions.'' The allowability of 
costs incurred by hospitals is determined in accordance with the 
provisions of Appendix E of 45 CFR part 74, ``Principles for Determining 
Costs Applicable to Research and Development Under Grants and Contracts 
with Hospitals.'')

                           [End of provision]



Sec. 1274.920  Responsibilities of the NASA technical officer.

             Responsibilities of the NASA Technical Officer

                                July 2002

    (a) The NASA Agreement Officer and Technical Officer for this 
cooperative agreement are identified on the cooperative agreement cover 
sheet.
    (b) The Agreement Officer shall serve as NASA's authorized 
representative for the administrative elements of all work to be 
performed under the agreement.
    (c) The Technical Officer shall have the authority to issue written 
Technical Advice which suggests redirecting the project work (e.g., by 
changing the emphasis among different tasks), or pursuing specific lines 
of inquiry likely to assist in accomplishing the effort. The Technical 
Officer shall have the authority to approve or disapprove those

[[Page 506]]

technical reports, plans, and other technical information the Recipient 
is required to submit to NASA for approval. The Technical Officer is not 
authorized to issue and the Recipient shall not follow any Technical 
Advice which constitutes work which is not contemplated under this 
agreement; which in any manner causes an increase or decrease in the 
resource sharing or in the time required for performance of the project; 
which has the effect of changing any of the terms or conditions of the 
cooperative agreement; or which interferes with the Recipient's right to 
perform the project in accordance with the terms and conditions of this 
cooperative agreement. In the event of perceived interference, dispute 
resolution procedures apply as set forth in 1274.907.

                           [End of provision]



Sec. 1274.921  Publications and reports: non-proprietary research results.

    The requirements set forth under this provision may be modified by 
the Agreement Officer based on specific report needs for the particular 
grant or cooperative agreement.

       Publications and Reports: Non-Proprietary Research Results

                                July 2002

    (a) NASA encourages the widest practicable dissemination of research 
results at all times during the course of the investigation consistent 
with the other terms of this agreement.
    (b) All information disseminated as a result of the cooperative 
agreement shall contain a statement which acknowledges NASA's support 
and identifies the cooperative agreement by number.
    (c) Prior approval by the NASA Technical Officer is required only 
where the Recipient requests that the results of the research be 
published in a NASA scientific or technical publication. Two copies of 
each draft publication shall accompany the approval request.
    (d) Reports shall contain full bibliographic references, abstracts 
of publications and lists of all other media in which the research was 
discussed. The Recipient shall submit the following technical reports:
    (1) A progress report for every year of the cooperative agreement 
(except the final year). Each report is due 60 days before the 
anniversary date of the cooperative agreement and shall describe 
research accomplished during the report period.
    (2) A summary of research is due by 90 days after the expiration 
date of the cooperative agreement, regardless of whether or not support 
is continued under another cooperative agreement. This report is 
intended to summarize the entire research accomplished during the 
duration of the cooperative agreement.
    (e) Progress reports and summaries of research shall display the 
following on the first page:
    (1) Title of the cooperative agreement.
    (2) Type of report.
    (3) Period covered by the report.
    (4) Name and address of the Recipient's organization.
    (5) Cooperative agreement number.
    (f) An original and two copies, one of which shall be of suitable 
quality to permit micro-reproduction, shall be sent as follows:
    (1) Original--Agreement Officer.
    (2) Copy--Technical Officer
    (3) Micro-reproducible copy--NASA Center for Aerospace Information 
(CASI), Parkway Center, Attn: Document Processing Section, 7121 Standard 
Drive, Hanover, MD 21076.

                           [End of provision]



Sec. 1274.922  Suspension or termination.

                        Suspension or Termination

                                July 2002

    (a) This cooperative agreement may be suspended or terminated in 
whole or in part by the Recipient or by NASA after consultation with the 
other party. With prior written notice, NASA may terminate the 
agreement, for example, if the Recipient is not making anticipated 
technical progress, if the Recipient materially fails to comply with the 
terms of the agreement, if the Recipient materially changes the 
objective of the agreement, or if appropriated funds are not available 
to support the program.
    (b) Upon fifteen (15) days written notice to the other party, either 
party may temporarily suspend the cooperative agreement, pending 
corrective action or a decision to terminate the cooperative agreement. 
The notice should express the reasons why the agreement is being 
suspended.
    (c) In the event of termination by either party, the Recipient shall 
not be entitled to additional funds or payments except as may be 
required by the Recipient to meet NASA`s share of commitments which had 
in the judgment of NASA become firm prior to the effective date of 
termination and are otherwise appropriate. In no event, shall these 
additional funds or payments exceed the amount of the next payable 
milestone billing amount.

[[Page 507]]

                           [End of provision]



Sec. 1274.923  Equipment and other property.

                      Equipment and Other Property

                                July 2002

    (a) Under no circumstances shall cooperative agreement funds be used 
to acquire land or any interest therein, to acquire or construct 
facilities (as defined in 48 CFR (FAR) 45.301), or to procure passenger 
carrying vehicles.
    (b) Contractor acquired equipment or property used in performance of 
the Cooperative Agreement shall be controlled in accordance with 48 CFR 
(FAR) 45.6.
    (c) The government shall have title to equipment and other personal 
property acquired with government funds. Such property shall be disposed 
of pursuant to 48 CFR (FAR) 45.603. The Recipient shall have title to 
equipment and other personal property acquired with Recipient funds. 
Such property shall remain with the Recipient at the conclusion of the 
cooperative agreement. Under a shared cost arrangement, the Government 
and the Recipient have joint ownership of acquired property in 
accordance with the cost share ratio. Jointly owned property shall be 
disposed of as agreed to by the parties.
    (d) Title to Government furnished equipment (including equipment, 
title to which has been transferred to the Government prior to 
completion of the work) will remain with the Government.
    (e) The Recipient shall establish and maintain property management 
standards for Government property and otherwise manage such property as 
set forth in 48 CFR (FAR) 45.5 and 48 CFR (NFS) 1845.5.
    (f) Recipients shall submit annually a NASA Form 1018, NASA Property 
in the Custody of Contractors, in accordance with the instructions on 
the form, the provisions of 48 CFR (NFS) 1845.71 and any supplemental 
instructions that may be issued by NASA for the current reporting 
period. The original NF 1018 shall be submitted to the center Deputy 
Chief Financial Officer, Finance, with three copies sent concurrently to 
the center Industrial Property Officer. The annual reporting period 
shall be from October 1 of each year through September 30 of the 
following year. The report shall be submitted in time to be received by 
October 31. Negative reports (i.e. no reportable property) are required. 
The information contained in the reports in entered into the NASA 
accounting system to reflect current asset values for agency financial 
statement purposes. Therefore, it is essential that required reports be 
received no later than October 31. A final report is required within 30 
days after expiration of the agreement.
    (g) As of the date of this rewrite, process changes have been made 
to facilitate electronic submission of NF 1018. Recipients may use the 
procedures established by NASA Procurement Notice (PN) 97-64, issued on 
August 9, 2001.

                           [End of provision]



Sec. 1274.924  Civil rights.

                              Civil Rights

                                July 2002

    Work on NASA cooperative agreements is subject to the provisions of 
Title VI of the Civil Rights Act of 1964 (Public Law 88-352; 42 U.S.C. 
2000d-l), Title IX of the Education Amendments of 1972 (20 U.S.C. 1680 
et seq.), section 504 of the Rehabilitation Act of 1973, as amended (29 
U.S.C. 794), the Age Discrimination Act of 1975 (42 U.S.C. 6101 et 
seq.), and the NASA implementing regulations (14 CFR parts 1250, 1251, 
1252 and 1253).

                           [End of provision]



Sec. 1274.925  Subcontracts.

                              Subcontracts

                                July 2002

    (a) Recipients are not authorized to issue grants or cooperative 
agreements.
    (b) NASA Agreement Officer consent is required for subcontracts 
over[dollar threshold inserted by Agreement Officer] and/or subcontracts 
for [critical systems, subsystems, components, or services inserted by 
Agreement Officer and Cognizant NASA Project Office]------.
    (c) If not submitted by the Recipient and accepted by NASA in the 
original proposal. The Recipient shall provide the following information 
to the Agreement Officer:
    (1) A copy of the proposed subcontract.
    (2) Basis for subcontractor selection.
    (3) Justification for lack of competition when competitive bids or 
offers are not obtained.
    (4) Basis for award cost or award price.
    (d) The Recipient shall utilize small business, veteran-owned small 
business, service-disabled veteran-owned small business, historically 
underutilized small business, small disadvantaged business, women-owned 
business concerns, Historically Black Colleges and Universities, and 
minority educational institutions as subcontractors to the maximum 
extent practicable.
    (e) All entities that are involved in performing the research and 
development effort that is the purpose of the cooperative agreement 
shall be part of the Recipient's consortium and not subcontractors.

[[Page 508]]

                           [End of provision]



Sec. 1274.926  Clean Air-Water Pollution Control Acts.

                 Clean Air-Water Pollution Control Acts

                                July 2002

    If this cooperative agreement or supplement thereto is in excess of 
$100,000, the Recipient agrees to notify the Agreement Officer promptly 
of the receipt, whether prior or subsequent to the Recipient's 
acceptance of this cooperative agreement, of any communication from the 
Director, Office of Federal Activities, Environmental Protection Agency 
(EPA), indicating that a facility to be utilized under or in the 
performance of this cooperative agreement or any subcontract thereunder 
is under consideration to be listed on the EPA ``List of Violating 
Facilities'' published pursuant to 40 CFR 15.20. By acceptance of a 
cooperative agreement in excess of $100,000, the Recipient--
    (a) Stipulates that any facility to be utilized thereunder is not 
listed on the EPA ``List of Violating Facilities'' as of the date of 
acceptance;
    (b) Agrees to comply with all requirements of section 114 of the 
Clean Air Act, as amended (42 U.S.C. 1857 et seq. as amended by Public 
Law 91-604) and section 308 of the Federal Water Pollution Control Act, 
as amended (33 U.S.C. 1251 et seq. as amended by Public Law 92-500) 
relating to inspection, monitoring, entry, reports and information, and 
all other requirements specified in the aforementioned sections, as well 
as all regulations and guidelines issued thereunder after award of and 
applicable to the cooperative agreement; and
    (c) Agrees to include the criteria and requirements of this clause 
in every subcontract hereunder in excess of $100,000, and to take such 
action as the Contracting or Grant Officer may direct to enforce such 
criteria and requirements.

                           [End of provision]



Sec. 1274.927  Debarment and suspension and drug-free workplace.

            Debarment and Suspension and Drug-Free Workplace

                                July 2002

    NASA cooperative agreements are subject to the provisions of 14 CFR 
part 1265, Government-wide Debarment and Suspension (Nonprocurement) and 
14 CFR part 1267, Government-wide requirements for Drug-Free Workplace, 
unless excepted by 14 CFR 1265.110 or 1265.610.

                           [End of provision]



Sec. 1274.928  Foreign national employee investigative requirements.

          Foreign National Employee Investigative Requirements

                                July 2002

    (a) The Recipient shall submit a properly executed Name Check 
Request (NASA Form 531) and a completed applicant fingerprint card 
(Federal Bureau of Investigation Card FD-258) for each foreign national 
employee requiring access to a NASA Installation. These documents shall 
be submitted to the Installation's Security Office at least 75 days 
prior to the estimated duty date. The NASA Installation Security Office 
will request a National Agency Check (NAC) for foreign national 
employees requiring access to NASA facilities. The NASA Form 531 and 
fingerprint card may be obtained from the NASA Installation Security 
Office.
    (b) The Installation Security Office will request from NASA 
Headquarters, Code I, approval for each foreign national's access to the 
Installation prior to providing access to the Installation. If the 
access approval is obtained from NASA Headquarters prior to completion 
of the NAC and performance of the cooperative agreement requires a 
foreign national to be given access immediately, the Technical Officer 
may submit an escort request to the Installation's Chief of Security.

                           [End of provision]



Sec. 1274.929  Restrictions on lobbying.

                        Restrictions on Lobbying

                                July 2002

    This award is subject to the provisions of 14 CFR part 1271 ``New 
Restrictions on Lobbying.''

                           [End of provision]



Sec. 1274.930  Travel and transportation.

                        Travel and Transportation

                                July 2002

    (a) For travel funded by the government under this agreement, 
section 5 of the International Air Transportation Fair Competitive 
Practices Act of 1974 (49 U.S.C. 40118) (Fly America Act) requires the 
Recipient to use U.S.-flag air carriers for international air 
transportation of personnel and property to the extent that service by 
those carriers is available.
    (b) Department of Transportation regulations, 49 CFR part 173, 
govern Recipient shipment of hazardous materials and other items.

[[Page 509]]

                           [End of provision]



Sec. 1274.931  Electronic funds transfer payment methods.

                Electronic Funds Transfer Payment Methods

                                July 2002

    Payments under this cooperative agreement will be made by the 
Government by electronic funds transfer through the Treasury Fedline 
Payment System (FEDLINE) or the Automated Clearing House (ACH), at the 
option of the Government. After award, but no later than 14 days before 
an invoice is submitted, the Recipient shall designate a financial 
institution for receipt of electronic funds transfer payments, and shall 
submit this designation to the Agreement Officer or other Government 
official, as directed.
    (a) For payment through FEDLINE, the Recipient shall provide the 
following information:
    (1) Name, address, and telegraphic abbreviation of the financial 
institution receiving payment.
    (2) The American Bankers Association 9-digit identifying number for 
wire transfers of the financing institution receiving payment if the 
institution has access to the Federal Reserve Communication System.
    (3) Payee's account number at the financial institution where funds 
are to be transferred.
    (4) If the financial institution does not have access to the Federal 
Reserve Communications System, name, address, and telegraphic 
abbreviation of the correspondent financial institution through which 
the financial institution receiving payment obtains wire transfer 
activity. Provide the telegraphic abbreviation and American Bankers 
Association identifying number for the correspondent institution.
    (b) For payment through ACH, the Recipient shall provide the 
following information:
    (1) Routing transit number of the financial institution receiving 
payment (same as American Bankers Association identifying number used 
for FEDLINE).
    (2) Number of account to which funds are to be deposited.
    (3) Type of depositor account (``C'' for checking, ``S'' for 
savings).
    (4) If the Recipient is a new enrollee to the ACH system, a 
``Payment Information Form,'' SF 3881, must be completed before payment 
can be processed.
    (c) In the event the Recipient, during the performance of this 
cooperative agreement, elects to designate a different financial 
institution for the receipt of any payment made using electronic funds 
transfer procedures, notification of such change and the required 
information specified above must be received by the appropriate 
Government official 30 days prior to the date such change is to become 
effective.
    (d) The documents furnishing the information required in this clause 
must be dated and contain the signature, title, and telephone number of 
the Recipient official authorized to provide it, as well as the 
Recipient's name and contract number.
    (e) Failure to properly designate a financial institution or to 
provide appropriate payee bank account information may delay payments of 
amounts otherwise properly due.

                           [End of provision]



Sec. 1274.932  Retention and examination of records.

                  Retention and Examination of Records

                                July 2002

    Financial records, supporting documents, statistical records, and 
all other records (or microfilm copies) pertinent to this cooperative 
agreement shall be retained for a period of 3 years, except that records 
for nonexpendable property acquired with cooperative agreement funds 
shall be retained for 3 years after its final disposition and, if any 
litigation, claim, or audit is started before the expiration of the 3-
year period, the records shall be retained until all litigation, claims, 
or audit findings involving the records have been resolved. The 
retention period starts from the date of the submission of the final 
invoice. The Administrator of NASA and the Comptroller General of the 
United States, or any of their duly authorized representatives, shall 
have access to any pertinent books, documents, papers, and records of 
the Recipient and of subcontractors to make audits, examinations, 
excerpts, and transcripts. All provisions of this clause shall apply to 
any subcontractor performing substantive work under this cooperative 
agreement.

                           [End of provision]



Sec. 1274.933  Summary of recipient reporting responsibilities.

             Summary of Recipient Reporting Responsibilities

                                July 2002

    This cooperative agreement requires the recipient to submit a number 
of reports. These reporting requirements are summarized below. In the 
event of a conflict between this provision and other provisions of the 
cooperative agreement requiring reporting, the other provisions take 
precedence.
    [The Agreement Officer may add/delete reporting requirements as 
appropriate.]

[[Page 510]]



------------------------------------------------------------------------
           Report                   Frequency             Reference
------------------------------------------------------------------------
Report of Joint NASA/         As required.........  1274.911 Patent
 Recipient Inventions.                               Rights
                                                    (Paragraph (b)(4))
Interim Report of Reportable  Every 12 months.....  1274.912 Patent
 Items.                                              Rights--Retention
                                                     by the Recipient
                                                     (Large Business)
                                                    (Paragraph
                                                     (e)(3)(i))
Final Report of Reportable    3 months after        1274.912 Patent
 Items.                        completion.           Rights--Retention
                                                     by the Recipient
                                                     (Large Business)
                                                     (Paragraph
                                                     (e)(3)(ii))
Disclosure of Subject         Within 2 months       1274.912 Patent
 Inventions.                   after inventor        Rights Retention by
                               discloses it to       the Recipient
                               Recipient.            (Large Business)
                                                     (Paragraph (e)(2))
                                                     or
                                                    1274.913 Patent
                                                     Rights--Retention
                                                     by the Recipient
                                                     (Small Business)
                                                    (Paragraph (c)(1))
Election of Title to a        1 year after          1274.913 Patent
 Subject Invention.            disclosure of the     Rights--Retention
                               subject invention     by the Recipient
                               if a statutory bar    (Small Business)
                               exists, otherwise    (Paragraph (c)(2))
                               within 2 years.
Listing of Subject            Every 12 months from  1274.913 Patent
 Inventions.                   the date of the       Rights--Retention
                               agreement.            by the Recipient
                                                     (Small Business)
                                                    (Paragraph
                                                     (f)(5)(i))
Subject Inventions Final      Prior to close-out    1274.913 Retention
 Report.                       of the agreement.     by the Recipient
                                                     (Small Business)
                                                    (Paragraph
                                                     (f)(5)(ii))
Notification of Decision to   30 days before        1274.913 Patent
 Forego Patent Protection.     expiration of the     Rights--Retention
                               response period.      by the Recipient
                                                     (Small Business)
                                                    (Paragraph (f)(3))
Notification of a             Promptly upon award   1274.912 Patent
 Subcontract Award.            of a subcontract.     Rights--Retention
                                                     by the Recipient
                                                     (Large
                                                     Business)(Paragraph
                                                     (g)(3))
                                                    or 1274.913 Patent
                                                     Rights--Retention
                                                     by the Recipient
                                                     (Small Business)
                                                    (Paragraph (g)(3))
Utilization of Subject        Annually............  1274.913 Patent
 Invention.                                          Rights--Retention
                                                     by the Recipient
                                                     (Small Business)
                                                    (Paragraph (h))
Notice of Proposed Transfer   Prior to              1274.915
 of Technology.                transferring          Restrictions on
                               technology to         Sale or Transfer of
                               foreign firm or       Technology to
                               institution.          Foreign Firms or
                                                     Institutions
                                                    (Paragraph (b))
Progress Report.............  60 days prior to the  1274.921
                               anniversary date of   Publications and
                               the agreement         Reports: Non-
                               (except final year).  Proprietary
                                                     Research Results
                                                    (Paragraph (d)(1))
Summary of Research.........  90 days after         1274.921
                               completion of         Publications and
                               agreement.            Reports: Non-
                                                     Proprietary
                                                     Research Results
                                                    (Paragraph (d)(2))
NASA Form 1018 Property in    Annually by October   1274.923 Equipment
 the Custody of Contractors.   31.                   and Other Property
                                                    (Paragraph (f))
NASA Form 1018 Property in    60 days after         1274.923 Equipment
 the Custody of Contractors.   expiration date of    and Other Property
                               agreement.           (Paragraph (f))
------------------------------------------------------------------------



Sec. 1274.934  Safety.

                                 Safety

                                July 2002

    NASA's safety priority is to protect: (1) The public, (2) astronauts 
and pilots, (3) the NASA workforce (including contractor employees 
working on NASA contracts), and (4) high-value equipment and property.
    (a) The Recipient shall act responsibly in matters of safety and 
shall take all reasonable safety measures in performing under this 
cooperative agreement. The recipient shall comply with all applicable 
federal, state, and local laws relating to safety. The Recipient shall 
maintain a record of, and will notify the NASA Agreement Officer 
immediately (within one workday) of any accident involving death, 
disabling injury or substantial loss of property. The Recipient will 
immediately (within one workday) advise NASA of hazards that come to its 
attention as a result of the work performed.
    (b) Where the work under this cooperative agreement involves flight 
hardware, the hazardous aspects, if any, of such hardware will be 
identified, in writing, by the Recipient. Compliance with this provision 
by subcontractors shall be the responsibility of the Recipient.

[[Page 511]]

                           [End of provision]



Sec. 1274.935  Security classification requirements.

                  Security Classification Requirements

                                July 2002

    Performance under this Cooperative Agreement will involve access to 
and/or generation of classified information, work in a secure area, or 
both, up to the level of [insert the applicable security clearance 
level]. Federal Acquisition Regulation clause 52.204-2 shall apply to 
this Agreement and DD Form 254, Contract Security Classification 
Specification Attachment ------ [Insert the attachment number of the DD 
Form 254.]

                           [End of provision]



Sec. 1274.936  Breach of safety or security.

                      Breach of Safety or Security

                                July 2002

    Safety is the freedom from those conditions that can cause death, 
injury, occupational illness, damage to or loss of equipment or 
property, or damage to the environment. Safety is essential to NASA and 
is a material part of this contract. NASA's safety priority is to 
protect: The public; astronauts and pilots; the NASA workforce 
(including contractor employees working on NASA contracts); and high-
value equipment and property. A major breach of safety by the Recipient 
entitles the Government to remedies (pending corrective measures by the 
Recipient) which includes, suspension or termination of the Cooperative 
Agreement, require removal or change of Recipient's personnel from 
performing under the Agreement. A major breach of safety must be related 
directly to the work on the Agreement. A major breach of safety is an 
act or omission of the Recipient that consists of an accident, incident, 
or exposure resulting in a fatality or mission failure; or in damage to 
equipment or property equal to or greater than $1 million; or in any 
``willful'' or ``repeat'' violation cited by the Occupational Safety and 
Health Administration (OSHA) or by a state agency operating under an 
OSHA approved plan.
    (a) Security is the condition of safeguarding against espionage, 
sabotage, crime (including computer crime), or attack. A major breach of 
security by the Recipient entitles the Government to remedies (pending 
corrective measures by the Recipient) which includes, suspension or 
termination of the Cooperative Agreement, require removal or change of 
Recipient's personnel from performing under the Cooperative Agreement. A 
major breach of security may occur on or off Government installations, 
but must be related directly to the work on the Cooperative Agreement. A 
major breach of security may arise from any of the following: compromise 
of classified information; illegal technology transfer; workplace 
violence resulting in criminal conviction; sabotage; compromise or 
denial of information technology services; damage or loss greater than 
$250,000 to the Government; or theft.
    (b) In the event of a major breach of safety or security, the 
Recipient shall report the breach to the Agreement Officer. If directed 
by the Agreement Officer, the Recipient shall conduct its own 
investigation and report the results to the Government. The Recipient 
shall cooperate with the Government investigation, if conducted.

                           [End of provision]



Sec. 1274.937  Security requirements for unclassified information technology resources.

 Security Requirements for Unclassified Information Technology Resources

                                July 2002

    (a) The Recipient shall be responsible for Information Technology 
security for all systems connected to a NASA network or operated by the 
Recipient for NASA, regardless of location. This provision is applicable 
to all or any part of the cooperative agreement that includes 
information technology resources or services in which the Recipient must 
have physical or electronic access to NASA's sensitive information 
contained in unclassified systems that directly support the mission of 
the Agency. This includes information technology, hardware, software, 
and the management, operation, maintenance, programming, and system 
administration of computer systems, networks, and telecommunications 
systems. Examples of tasks that require security provisions include:
    (1) Computer control of spacecraft, satellites, or aircraft or their 
payloads;
    (2) Acquisition, transmission or analysis of data owned by NASA with 
significant replacement cost should the Recipient's copy be corrupted; 
and
    (3) Access to NASA networks or computers at a level beyond that 
granted the general public, e.g. bypassing a firewall.
    (b) The Recipient shall provide, implement, and maintain an IT 
Security Plan. This plan shall describe the processes and procedures 
that will be followed to ensure appropriate security of IT resources 
that are developed, processed, or used under this cooperative agreement. 
The plan shall describe those parts of the cooperative agreement to 
which this provision applies. The Recipient's IT Security Plan shall be 
compliant with

[[Page 512]]

Federal laws that include, but are not limited to, the Computer Security 
Act of 1987 (40 U.S.C. 1441 et seq.) and the Government Information 
Security Reform Act of 2000. The plan shall meet IT security 
requirements in accordance with Federal and NASA policies and procedures 
that include, but are not limited to:
    (1) OMB Circular A-130, Management of Federal Information Resources, 
Appendix III, Security of Federal Automated Information Resources;
    (2) NASA Procedures and Guidelines (NPG) 2810.1, Security of 
Information Technology; and
    (3) Chapter 3 of NPG 1620.1, NASA Security Procedures and 
Guidelines.
    (c) Within ---- days after cooperative agreement award, the 
Recipient shall submit for NASA approval an IT Security Plan. This plan 
must be consistent with and further detail the approach contained in the 
Recipient's proposal that resulted in the award of this cooperative 
agreement and in compliance with the requirements stated in this 
provision. The plan, as approved by the Agreement Officer, shall be 
incorporated into the cooperative agreement as a compliance document.
    (d)(1) Recipient personnel requiring privileged access or limited 
privileged access to systems operated by the Recipient for NASA or 
interconnected to a NASA network shall be screened at an appropriate 
level in accordance with NPG 2810.1, Section 4.5; NPG 1620.1, Chapter 3; 
and paragraph (d)(2) of this provision. Those Recipient personnel with 
non-privileged access do not require personnel screening. NASA shall 
provide screening using standard personnel screening National Agency 
Check (NAC) forms listed in paragraph (d)(3) of this provision, unless 
Recipient screening in accordance with paragraph (d)(4) is approved. The 
Recipient shall submit the required forms to the NASA Center Chief of 
Security (CCS) within fourteen (14) days after cooperative agreement 
award or assignment of an individual to a position requiring screening. 
The forms may be obtained from the CCS. At the option of the government, 
interim access may be granted pending completion of the NAC.
    (2) Guidance for selecting the appropriate level of screening is 
based on the risk of adverse impact to NASA missions. NASA defines three 
levels of risk for which screening is required (IT-1 has the highest 
level of risk):
    (i) IT-1--Individuals having privileged access or limited privileged 
access to systems whose misuse can cause very serious adverse impact to 
NASA missions. These systems include, for example, those that can 
transmit commands directly modifying the behavior of spacecraft, 
satellites or aircraft.
    (ii) IT-2--Individuals having privileged access or limited 
privileged access to systems whose misuse can cause serious adverse 
impact to NASA missions. These systems include, for example, those that 
can transmit commands directly modifying the behavior of payloads on 
spacecraft, satellites or aircraft; and those that contain the primary 
copy of ``level 1'' data whose cost to replace exceeds one million 
dollars.
    (iii) IT-3--Individuals having privileged access or limited 
privileged access to systems whose misuse can cause significant adverse 
impact to NASA missions. These systems include, for example, those that 
interconnect with a NASA network in a way that exceeds access by the 
general public, such as bypassing firewalls; and systems operated by the 
Recipient for NASA whose function or data has substantial cost to 
replace, even if these systems are not interconnected with a NASA 
network.
    (3) Screening for individuals shall employ forms appropriate for the 
level of risk as follows:
    (i) IT-1: Fingerprint Card (FC) 258 and Standard Form (SF) 85P, 
Questionnaire for Public Trust Positions;
    (ii) IT-2: FC 258 and SF 85, Questionnaire for Non-Sensitive 
Positions; and
    (iii) IT-3: NASA Form 531, Name Check, and FC 258.
    (4) The Agreement Officer may allow the Recipient to conduct its own 
screening of individuals requiring privileged access or limited 
privileged access provided the Recipient can demonstrate that the 
procedures used by the Recipient are equivalent to NASA's personnel 
screening procedures. As used here, equivalent includes a check for 
criminal history, as would be conducted by NASA, and completion of a 
questionnaire covering the same information as would be required by 
NASA.
    (5) Screening of Recipient personnel may be waived by the Agreement 
Officer for those individuals who have proof of--
    (i) Current or recent national security clearances (within last 
three years);
    (ii) Screening conducted by NASA within last three years; or
    (iii) Screening conducted by the Recipient, within last three years, 
that is equivalent to the NASA personnel screening procedures as 
approved by the Agreement Officer under paragraph (d)(4) of this 
provision.
    (e) The Recipient shall ensure that its employees, in performance of 
the cooperative agreement, receive annual IT security training in NASA 
IT Security policies, procedures, computer ethics, and best practices in 
accordance with NPG 2810.1, Section 4.3 requirements. The Recipient may 
use web-based training available from NASA to meet this requirement.
    (f) The Recipient shall afford NASA, including the Office of 
Inspector General, access to the Recipient's, subcontractors' or

[[Page 513]]

subawardees' facilities, installations, operations, documentation, 
databases and personnel used in performance of the cooperative 
agreement. Access shall be provided to the extent required to carry out 
a program of IT inspection, investigation and audit to safeguard against 
threats and hazards to the integrity, availability and confidentiality 
of NASA data or to the function of computer systems operated on behalf 
of NASA, and to preserve evidence of computer crime.
    (g) The Recipient shall incorporate the substance of this clause in 
all subcontracts or subagreements that meet the conditions in paragraph 
(a) of this provision.

                           [End of provision]



Sec. 1274.938  Modifications.

                              Modifications

                                July 2002

    During the term of this agreement and in the interest of achieving 
program objectives, the parties may agree to changes that affect the 
responsibility statements, milestones, or other provisions of this 
agreement. Any changes to this agreement will be accomplished by a 
written bilateral modification.

                           [End of provision]



Sec. 1274.939  Application of Federal, State, and Local laws and regulations.

      Application of Federal, State, and Local Laws and Regulations

                                July 2002

    (a) Federal Laws and Regulations. This Cooperative Agreement shall 
be governed by the Federal Laws, regulations, policies, and related 
administrative practices applicable to this Cooperative Agreement on the 
date the Agreement is executed. The Recipient understands that such 
Federal laws, regulations, policies, and related administrative 
practices may be modified from time to time. The Recipient agrees to 
consider modifying this Agreement to be governed by those later modified 
Federal laws, regulations, policies, and related administrative 
practices that directly affect performance of the Project.
    (b) State or Territorial Law and Local Law. Except to the extent 
that a Federal statute or regulation preempts State or territorial law, 
nothing in the Cooperative Agreement shall require the Recipient to 
observe or enforce compliance with any provision thereof, perform any 
other act, or do any other thing in contravention of any applicable 
State or territorial law; however, if any of the provisions of the 
Cooperative Agreement violate any applicable State or territorial law, 
or if compliance with the provisions of the Agreement would require the 
Recipient to violate any applicable State or territorial law, the 
Recipient agrees to notify the Government (NASA) immediately in writing 
in order that the Government and the Recipient may make appropriate 
arrangements to proceed with the Project as soon as possible.
    (c) Changed Conditions of Performance (Including Litigation). The 
Recipient agrees to notify the Government (NASA) immediately of any 
change in State or local law, conditions, or any other event that may 
significantly affect its ability to perform the Project in accordance 
with the terms of this Cooperative Agreement. In addition, the Recipient 
agrees to notify the Government (NASA) immediately of any decision 
pertaining to the Recipient's conduct of litigation that may affect the 
Government's interests in the Project or the Government's administration 
or enforcement of applicable Federal laws or regulations. Before the 
Recipient may name the Government as a party to litigation for any 
reason, the Recipient agrees to inform the Government; this proviso 
applies to any type of litigation whatsoever, in any forum.
    (d) No Government Obligations to Third Parties. Absent the 
Government's express written consent, and notwithstanding any 
concurrence by the Government in or approval of the award of any 
Agreement of the Recipient (third party contract) or subcontract of the 
Recipient (third party subcontract) or the solicitation thereof, the 
Government shall not be subject to any obligations or liabilities to 
third party contractors or third party subcontractors or any other 
person(s).

                           [End of provision]



Sec. 1274.940  Changes in recipient's membership.

                    Changes in Recipient's Membership

                                July 2002

    The Recipient shall notify the cognizant Agreement Officer within 
seven (7) days of any change in the corporate membership (ownership) 
structure of the Recipient, including the addition or withdrawal of any 
of the Recipient's affiliated members (e.g., Consortium Member). If NASA 
reasonably determines that any change in the corporate membership 
(ownership) of Recipient will conflict with NASA's objectives for the --
---- Project or any statutory or regulatory restriction applicable to 
the agency, NASA may terminate this Agreement after giving the Agreement 
Recipient at least ninety (90) days prior written notice of such 
perceived conflict and a reasonable opportunity to cure such conflict.

[[Page 514]]

                           [End of provision]



Sec. 1274.941  Insurance and indemnification.

    The following provision is applicable to all cooperative agreements 
with commercial firms that involve programs or projects that are subject 
to Section 431 of Public Law 105-276, which addresses insurance for, or 
indemnification of, developers of experimental aerospace vehicles.

                      Insurance and Indemnification

                                July 2002

    (a) General. The Recipient has applied, under the provisions of 
Section 431 of Public Law 105-276 (Section 431), for indemnification by 
the Government against certain third party damage claims that might 
arise under the Agreement. Under Section 431, a necessary prerequisite 
to, and consideration for, the Government's granting such 
indemnification is the Recipient's obtaining insurance against an 
initial increment of such damages arising from certain third party 
claims. This provision sets forth the requirements for this insurance 
prerequisite to a Government grant of indemnification.
    (b) Definitions. The definitions at 14 CFR 1266, Cross-Waivers and 
Indemnification, apply to this provision.
    (c) Insurance. The Recipient shall obtain, as part of its financial 
contribution, insurance that meets the following parameters:
    (1) The insurance policy or policies shall insure against damages 
incurred by third parties arising from covered activities;
    (2) The amount of insurance applicable to each launch shall be 
[Amount to be inserted by the contracting officer]. The Government may 
subsequently increase the amount of insurance the Recipient is required 
to maintain to qualify for indemnification, for one or more launches, 
and the Recipient shall pay the additional cost of such increases from 
its financial contribution; and
    (3) The insurance policy or policies shall name the parties and 
their related entities, and the employees of the parties and their 
related entities, as named insureds.
    Nothing in this provision precludes the Recipient from obtaining, at 
no cost to the Government, such other insurance as the Recipient 
determines advisable to protect its business interests.
    (d) Proof of Insurance. The Recipient shall provide proof of 
insurance that meets the parameters in paragraph (c) of this provision 
and that is acceptable to the Agreement Officer:
    (1) Within 30/60 days after the execution of the modification adding 
this provision to the Agreement;
    (2) No later than 30 days before each launch; and
    (3) Within 7 days after a request by the Agreement Officer.
    Moreover, the Recipient shall promptly notify the Agreement Officer 
of any termination, or of any change to the terms or conditions of an 
insurance policy or policies for which proof of insurance was provided.
    (e) Notification of Claims. The Recipient shall--
    (1) Promptly notify the Agreement Officer of any third party claim 
or suit against the Recipient, one of its related entities, any employee 
of the Recipient or its related entities, or any insurer of the 
Recipient for damages resulting from covered activities;
    (2) Furnish evidence or proof of any such claim, suit or damages, in 
the form required by NASA; and
    (3) Immediately furnish to NASA, or its designee, copies of all 
information received by the Recipient, or by any related entity, 
employee or insurer that is pertinent to such claim, suit or damages.
    (f) NASA Concurrence in Settlements. NASA shall concur or not concur 
in each settlement of a third party claim by the Recipient's insurer(s). 
For purposes of determining the amount of indemnification under this 
cooperative agreement. Adjudicated claims shall be deemed concurred in 
by NASA.

                           [End of provision]



Sec. 1274.942  Export licenses.

                             Export Licenses

                                July 2002

    (a) The Recipient shall comply with all U.S. export control laws and 
regulations, including the International Traffic in Arms Regulations 
(ITAR), 22 CFR Parts 120 through 130, and the Export Administration 
Regulations (EAR), 15 CFR parts 730 through 799, in the performance of 
this Cooperative Agreement. In the absence of available license 
exemptions/exceptions, the Recipient shall be responsible for obtaining 
the appropriate licenses or other approvals, if required, for exports of 
hardware, technical data, and software, or for the provision of 
technical assistance.
    (b) The Recipient shall be responsible for obtaining export 
licenses, if required, before utilizing foreign persons in the 
performance of this Cooperative Agreement, including instances where the 
work is to be performed on-site at [insert name of NASA installation], 
where the foreign person will have access to export-controlled technical 
data or software.
    (c) The Recipient shall be responsible for all regulatory record 
keeping requirements associated with the use of licenses and license 
exemptions/exceptions.

[[Page 515]]

    (d) The Recipient shall be responsible for ensuring that the 
requirements of this provision apply to its subcontractors.
    (e) The Recipient may request, in writing, that the Agreement 
Officer authorize it to export ITAR-controlled technical data (including 
software) pursuant to the exemption at 22 CFR 125.4(b)(3). The Agreement 
Officer or designated representative may authorize or direct the use of 
the exemption where the data does not disclose details of the design, 
development, production, or manufacture of any defense article.

                           [End of provision]

               Appendix to Part 1274--Listing of Exhibits

               Exhibit A to Part 1274--Contract Provisions

    All contracts awarded by a recipient, including small purchases, 
shall contain the following provisions if applicable:
    1. Equal Employment Opportunity--All contracts shall contain a 
provision requiring compliance with E.O. 11246, ``Equal Employment 
Opportunity,'' as amended by E.O. 11375, ``Amending Executive Order 
11246 Relating to Equal Employment Opportunity,'' and as supplemented by 
regulations at 41 CFR Part 60, ``Office of Federal Contract Compliance 
Programs, Equal Employment Opportunity, Department of Labor.''
    2. Copeland ``Anti-Kickback'' Act (18 U.S.C. 874 and 40 U.S.C. 
276c)--All contracts in excess of $50,000 for construction or repair 
awarded by Recipients and subrecipients shall include a provision for 
compliance with the Copeland ``Anti-Kickback'' Act (18 U.S.C. 874), as 
supplemented by Department of Labor regulations (29 CFR part 3, 
``Contractors and Subcontractors on Public Building or Public Work 
Financed in Whole or in Part by Loans or Grants from the United 
States''). The Act provides that each recipient or subrecipient shall be 
prohibited from inducing, by any means, any person employed in the 
construction, completion, or repair of public work, to give up any part 
of the compensation to which he is otherwise entitled. The recipient 
shall report all suspected or reported violations to NASA.
    3. Contract Work Hours and Safety Standards Act (40 U.S.C. 327-333)-
-Where applicable, all contracts awarded by recipients in excess of 
$2,000 for construction contracts and in excess of $50,000 for other 
contracts, other than contracts for commercial items, that involve the 
employment of mechanics or laborers shall include a provision for 
compliance with sections 102 and 107 of the Contract Work Hours and 
Safety Standards Act (40 U.S.C. 327-333), as supplemented by Department 
of Labor regulations (29 CFR part 5). Under Subsection 102 of the Act, 
each recipient shall be required to compute the wages of every mechanic 
and laborer on the basis of a standard work week of 40 hours. Work in 
excess of the standard work week is permissible provided that the worker 
is compensated at a rate of not less than 1\1/2\ times the basic rate of 
pay for all hours worked in excess of 40 hours in the work week. Section 
107 of the Act is applicable to construction work and provides that no 
laborer or mechanic shall be required to work in surroundings or under 
working conditions which are unsanitary, hazardous or dangerous. These 
requirements do not apply to the purchases of supplies or materials or 
articles ordinarily available on the open market, or contracts for 
transportation or transmission of intelligence.
    4. Rights to Inventions Made Under a Contract or Agreement--
    Contracts or agreements for the performance of experimental, 
developmental, or research work shall provide for the rights of the 
Federal Government and the Recipient in any resulting invention in 
accordance with 37 CFR part 401, ``Rights to Inventions Made by 
Nonprofit Organizations and Small Business Firms Under Government 
Grants, Contracts and Cooperative Agreements,'' and any implementing 
regulations issued by the awarding agency.
    5. Clean Air Act (42 U.S.C. 7401 et seq.) and the Federal Water
    Pollution Control Act (33 U.S.C. 1251 et seq.), as amended --
Contracts, other than contracts for commercial items, of amounts in 
excess of $100,000 shall contain a provision that requires the Recipient 
to agree to comply with all applicable standards, orders or regulations 
issued pursuant to the Clean Air Act (42 U.S.C. 7401 et seq.) and the 
Federal Water Pollution Control Act as amended (33 U.S.C. 1251 et seq.). 
Violations shall be reported to NASA and the Regional Office of the 
Environmental Protection Agency (EPA).
    6. Byrd Anti-Lobbying Amendment (31 U.S.C. 1352)--Contractors who 
apply or bid for an award of $100,000 or more shall file the required 
certification. Each tier certifies to the tier above that it will not 
and has not used Federal appropriated funds to pay any person or 
organization for influencing or attempting to influence an officer or 
employee of any agency, a member of Congress, officer or employee of 
Congress, or an employee of a member of Congress in connection with 
obtaining any Federal contract, grant or any other award covered by 31 
U.S.C. 1352. Each tier shall also disclose any lobbying with non-Federal 
funds that takes place in connection with obtaining any Federal award. 
Such disclosures are forwarded from tier to tier up to the Recipient.

[[Page 516]]

    7. Debarment and Suspension (E.O.s 12549 and 12689)--No contract 
shall be made to parties listed on the General Services Administration's 
List of Parties Excluded from Federal Procurement or Nonprocurement 
Programs in accordance with E.O.s 12549 and 12689, ``Debarment and 
Suspension.'' This list contains the names of parties debarred, 
suspended, or otherwise excluded by agencies, and contractors declared 
ineligible under statutory or regulatory authority other than E.O. 
12549. Contractors with awards that exceed the simplified acquisition 
threshold shall provide the required certification regarding its 
exclusion status and that of its principal employees.

                     Exhibit B to Part 1274--Reports

         1. Individual Procurement Action Report (NASA Form 507)

    The Agreement Officer is responsible for submitting NASA Form 507 
for all cooperative agreement actions.

                         2. Property Reporting.

    As provided in paragraph (f) of Sec. 1274.923, an annual NASA Form 
(NF) 1018, NASA Property in the Custody of Contractors, will be 
submitted by October 31 of each year. Negative annual reports are 
required. A final report is required within 30 days after expiration of 
the agreement (also see paragraph (g) of 1274.923 for electronic 
submission guidance).

              3. Disclosure of Lobbying Activities (SFLLL)

    (a) Agreement Officers shall provide one copy of each SF LLL 
furnished under 14 CFR 1271.110 to the Procurement Officer for 
transmittal to the Director, Analysis Division (Code HC).
    (b) Suspected violations of the statutory prohibitions imple mented 
by 14 CFR part 1271 shall be reported to the Director, Contract 
Management Division (Code HK).

                       PARTS 1275-1299 [RESERVED]

[[Page 517]]



           CHAPTER VI--AIR TRANSPORTATION SYSTEM STABILIZATION




  --------------------------------------------------------------------
Part                                                                Page
              SUBCHAPTER A--OFFICE OF MANAGEMENT AND BUDGET
1300            Aviation disaster relief--air carrier 
                    guarantee loan program..................         519
          SUBCHAPTER B--AIR TRANSPORTATION STABILIZATION BOARD
1310            Air carrier guarantee loan program 
                    administrative regulations..............         527

[[Page 519]]



              SUBCHAPTER A--OFFICE OF MANAGEMENT AND BUDGET





PART 1300--AVIATION DISASTER RELIEF--AIR CARRIER GUARANTEE LOAN PROGRAM--Table of Contents




                           Subpart A--General

Sec.
1300.1 Purpose.
1300.2 Definitions.
1300.3 Supplementary regulations of the Air Transportation Stabilization 
          Board.

       Subpart B--Minimum Requirements and Application Procedures

1300.10 General standard for Board issuance of Federal credit 
          instruments.
1300.11 Eligible borrower.
1300.12 Eligible lender.
1300.13 Guarantee amount.
1300.14 Guarantee percentage.
1300.15 Loan terms.
1300.16 Application process.
1300.17 Application evaluation.
1300.18 Issuance of the guarantee.
1300.19 Assignment or transfer of loans.
1300.20 Lender responsibilities.
1300.21 Guarantee.
1300.22 Termination of obligations.
1300.23 Participation in guaranteed loans.

    Authority: Title I of Pub. L. 107-42, 115 Stat. 230 (49 U.S.C. 40101 
note).

    Source: 66 FR 52272, Oct. 12, 2001, unless otherwise noted.



                           Subpart A--General



Sec. 1300.1  Purpose.

    This part is issued by the Office of Management and Budget, (OMB) 
pursuant to Title I of the Air Transportation Safety and System 
Stabilization Act, Public Law 107-42, 115 Stat. 230 (``Act''). 
Specifically, Section 102(c)(2)(B) directs OMB to issue regulations 
setting forth procedures for application and minimum requirements for 
the issuance of Federal credit instruments under section 101(a)(1) of 
the Act.



Sec. 1300.2  Definitions.

    (a) Act means the Air Transportation Safety and System Stabilization 
Act, Public Law 107-42, 115 Stat. 230 (49 U.S.C. 40101 note).
    (b) Administer, administering and administration, mean the lender's 
actions in making, disbursing, servicing (including, but not limited to 
care, preservation and maintenance of collateral), monitoring, 
collecting, and liquidating a loan and security.
    (c) Agent means that lender authorized to take such actions, 
exercise such powers, and perform such duties on behalf and in 
representation of all lenders party to a guarantee of a single loan, as 
is required by, or necessarily incidental to, the terms and conditions 
of the guarantee.
    (d) Air carrier means an air carrier as defined in 49 U.S.C. 40102.
    (e) Applicant means one or more air carriers applying for a Federal 
credit instrument issued by the Board under the program.
    (f) The Board, for purposes of any operational and decisionmaking 
functions in connection with individual loan guarantees, means the 
voting members of the Air Transportation Stabilization Board established 
under Section 102 of the Act. The voting members of the Board are the 
Chairman of the Board of Governors of the Federal Reserve System (who is 
the Chairman of the Board), the Secretary of the Treasury and the 
Secretary of Transportation, or their designees. The Comptroller 
General, who is a nonvoting member, will not participate in the review, 
operations, or deliberations of the Board in connection with individual 
loan guarantees, or otherwise participate in the Board's exercise of any 
executive power, but may provide such audit, evaluation and other 
support to the Board as the Board may request, consistent with 
applicable auditing standards.
    (g) Borrower means an ``Obligor,'' as defined in Section 102(a)(4) 
of the Act, and includes an air carrier that is primarily liable for 
payment of the principal of and interest on a Federal credit instrument, 
which party may be a corporation, partnership, joint venture, trust, or 
governmental entity, agency, or instrumentality.
    (h) Federal credit instrument, as defined in Section 107(2) of the 
Act, means any guarantee or other pledge by the Board issued under the 
program to pledge the full faith and credit of

[[Page 520]]

the United States to pay all or part of any of the principal of and 
interest on a loan issued by a borrower and funded by a lender.
    (i) Financial obligation, as defined in Section 102(a)(2) of the 
Act, means any note, bond, debenture, or other debt obligation issued by 
a borrower in connection with financing under the program.
    (j) Guarantee means the written agreement between the Board and one 
or more lenders, pursuant to which the Federal government guarantees 
repayment of a specified percentage of the principal of and/or interest 
on the loan. Unless otherwise specified, guarantee includes any other 
pledge issued under a Federal credit instrument.
    (k) Lender means any non-Federal qualified institutional buyer, as 
defined in Section 102(a)(3) of the Act, that funds a financial 
obligation subject to a guarantee issued by the Board. With respect to a 
guarantee of a single loan to which more than one lender is a party, the 
term lender means agent.
    (l) Loan, unless otherwise specified, includes any financial 
obligation (i.e., note, bond, debenture, or other debt obligation) 
issued by a borrower.
    (m) Loan documents mean the loan agreement and all other 
instruments, and all documentation between the lender and the borrower 
evidencing the making, disbursing, securing, collecting, or otherwise 
administering of the loan. (References to loan documents also include 
comparable agreements, instruments, and documentation for other 
financial obligations for which a guarantee is requested or issued.)
    (n) Program means the air carrier guarantee loan program established 
by section 101(a)(1) and the related provisions of Title I of the Act.
    (o) Security means all property, real or personal, required by the 
provisions of the guarantee or by the loan documents to secure repayment 
of any indebtedness of the borrower under the loan documents or 
guarantee.



Sec. 1300.3  Supplementary regulations of the Air Transportation Stabilization Board.

    (a) The regulations in this part are supplemented by the regulations 
of the Air Transportation Stabilization Board in part 1310 of this 
chapter in accordance with section 102(c)(2)(B) of the Act.
    (b) This part and part 1310 of this chapter jointly govern the 
application procedures and the requirements for issuance of Federal 
credit instruments under section 101(a)(1) of the Act.

[67 FR 17258, Apr. 9, 2002]



       Subpart B--Minimum Requirements and Application Procedures



Sec. 1300.10  General standards for Board issuance of Federal credit instruments.

    (a) In accordance with section 102(c)(1) of the Act, the Board may 
enter into agreements with one or more borrowers to issue Federal credit 
instruments only if the Board determines, in its discretion and in 
accordance with the minimum requirements set forth in this part, that--
    (1) The borrower is an air carrier for which credit is not 
reasonably available at the time of the transaction;
    (2) The intended obligation by the borrower is prudently incurred; 
and
    (3) Such agreement is a necessary part of maintaining a safe, 
efficient, and viable commercial aviation system in the United States.
    (b) In accordance with section 102(c)(2)(A) of the Act, the Board 
shall enter into an agreement to issue a Federal credit instrument in 
such form and on such terms and conditions and subject to such 
covenants, representations, warranties, and requirements (including 
requirements for audits) as the Board determines are appropriate for 
satisfying the requirements of this part and any supplemental 
requirements issued by the Board under section 102(c)(2)(B) of the Act.
    (c) In accordance with section 102(d)(1) of the Act, in entering 
into

[[Page 521]]

agreements to issue Federal credit instruments, the Board shall, to the 
extent feasible and practicable and in accordance with the requirements 
in this part, ensure that the Federal Government is compensated for the 
risk assumed in making guarantees.
    (d) In accordance with Section 102(d)(2) of the Act, the Board is 
authorized to enter into contracts under which the Federal Government, 
contingent on the financial success of the air carrier, would 
participate in the gains of the air carrier or its security holders 
through the use of such instruments as warrants, stock options, common 
or preferred stock, or other appropriate equity instruments, except that 
the Board shall not accept an equity interest in an air carrier that 
gives the Federal Government voting rights.
    (e) In accordance with Section 104(a) of the Act, the Board may only 
issue a Federal credit instrument to an air carrier after the air 
carrier enters into a legally binding agreement with the Board regarding 
certain employee compensation.



Sec. 1300.11  Eligible borrower.

    (a) An eligible borrower must be an air carrier that can 
demonstrate, to the satisfaction of the Board, that:
    (1) It has incurred (or is incurring) losses as a result of the 
terrorist attacks on the United States that occurred on September 11, 
2001, which may include losses due to the unavailability of credit or 
the decrease in demand for that air carrier's services;
    (2) It is not under bankruptcy protection or receivership when the 
application is submitted or when the Board issues the guarantee, unless 
the guarantee and the underlying financial obligation is to be part of a 
bankruptcy court-certified reorganization plan;
    (3) It has agreed to permit such audits and reviews prior to the 
issuance of a guarantee, as the Board may deem appropriate, by an 
independent auditor acceptable to the Board;
    (4) It has agreed to permit such audits and reviews during the 
period the loan is outstanding and three years after payment in full of 
the guaranteed loan, as the Board may deem appropriate, by an 
independent auditor acceptable to the Board or by the Comptroller 
General;
    (5) In conducting audits and reviews pursuant to paragraphs (a) (3) 
and (4) of this section, it has agreed to provide access to the officers 
and employees, books, records, accounts, documents, correspondence, and 
other information of the borrower, its subsidiaries, affiliates, 
financial advisers, consultants, and independent certified accountants 
that the Board or the Comptroller General consider necessary.
    (b) Status as an eligible borrower under this section does not 
ensure that the Board will issue the guarantee sought or preclude the 
Board from declining to issue a guarantee.



Sec. 1300.12  Eligible lender.

    (a) A lender eligible to receive a Federal credit instrument 
approved by the Board must be a non-Federal qualified institutional 
buyer as defined in Section 102(a)(3) of the Act.
    (b) If more than one institution participates as a lender in a 
single loan for which a Federal credit instrument is requested, each one 
of the institutions on the application must meet the requirements to be 
an eligible lender. An application for a guarantee of a single loan, for 
which there is more than one lender, must identify one of the 
institutions to act as agent for all. This agent is responsible for 
administering the loan and shall have those duties and responsibilities 
required of an agent, as set forth in the guarantee.
    (c) Each lender, irrespective of any indemnities or other agreements 
between the lenders and the agent, shall be bound by all actions, and/or 
failures to act, of the agent. The Board shall be entitled to rely upon 
such actions and/or failures to act of the agent as binding the lenders.
    (d) Status as an eligible lender under this section does not assure 
that the Board will issue the guarantee sought, or otherwise preclude 
the Board from declining to issue a guarantee.



Sec. 1300.13  Guarantee amount.

    (a) Under Section 101(a)(1) of the Act, the Board is authorized to 
enter into agreements to issue Federal credit instruments that, in the 
aggregate, do not exceed $10 billion.

[[Page 522]]

    (b) The loan amount guaranteed to a single air carrier may not 
exceed that amount that, in the Board's sole discretion, the air carrier 
(or its successor) needs in order for it to provide commercial air 
services.



Sec. 1300.14  Guarantee percentage.

    A guarantee issued by the Board must be less than 100 percent of the 
amount of principal and accrued interest of the loan guaranteed.



Sec. 1300.15  Loan terms.

    (a) A loan guaranteed under the program shall be due and payable in 
full no later than seven years from the date on which the first 
disbursement of the loan is made.
    (b) Loans guaranteed under the program must bear a rate of interest 
determined by the Board to be reasonable. In determining the 
reasonableness of an interest rate, the Board shall consider the 
percentage of the guarantee, any collateral, other loan terms, and 
current average yields on outstanding obligations of the United States 
with maturity comparable to the term of the loan guaranteed. The Board 
may reject an application to guarantee a loan if it determines the 
interest rate on such loan to be unreasonable.
    (c) An eligible lender may assess and collect from the borrower such 
other fees and costs associated with the application and origination of 
the loan as are reasonable and customary, taking into consideration the 
amount and complexity of the credit. The Board may take such other fees 
and costs into consideration when determining whether to offer a 
guarantee to the lender.



Sec. 1300.16  Application process.

    (a) Applications are to be submitted by the borrower. Borrowers may 
submit applications to the Board any time after October 12, 2001 through 
June 28, 2002. All applications must be received by the Board no later 
than 5 p.m. EDT, June 28, 2002, in the Board's offices. Borrowers should 
submit an original application and four copies. Applications will not be 
accepted via facsimile machine transmission or electronic mail. No 
application will be accepted for review if it is not received by the 
Board on or before June 28, 2002.
    (b) Applications shall contain the following:
    (1) A completed Form ``Application for Air Carrier Guaranteed Loan';
    (2) All loan documents that will be signed by the lender and the 
borrower, if the application is approved, including all terms and 
conditions of, and security or additional security (if any), to assure 
the borrower's performance under, the loan;
    (3) A certification by the borrower that the borrower meets each of 
the requirements of the program as set forth in the Act, the regulations 
in this part, and any supplemental requirements issued by the Board;
    (4) A certification by the lender that the lender meets each of the 
requirements of the program as set forth in the Act, the regulations in 
this part, and any supplemental requirements issued by the Board, and 
that the lender will provide the loan under the terms outlined in the 
loan documents if the Board approves the requested guarantee;
    (5) A statement that the borrower is not under bankruptcy protection 
or receivership when the application is submitted, unless the guarantee 
and the underlying financial obligation is to be part of a bankruptcy 
court-certified reorganization plan;
    (6) Consolidated financial statements of the borrower for the 
previous five years that have been audited by an independent certified 
public accountant, including any associated notes, as well as any 
interim financial statements and associated notes for the current fiscal 
year;
    (7) Copies of the financial evaluations and forecasts concerning the 
air carrier's air service operations that were prepared by or for the 
air carrier within the three months prior to September 11, 2001;
    (8) The borrower's business plan on which the loan is based that 
includes the following:
    (i) A description of how the loan fits within the borrower's 
business plan, the purposes for which the borrower will use the loan, 
and an analysis showing that the loan is prudently incurred. If loan 
funds are to be used to purchase

[[Page 523]]

an existing firm (or the substantial assets of an existing firm), the 
business plan of the combined entity shall contain a discussion of the 
way in which any required regulatory or judicial approvals will be 
obtained, including antitrust approval for any proposed acquisition;
    (ii) A discussion of a complete cost accounting and a range of 
revenue, operating cost, and credit assumptions;
    (iii) A discussion of the financing plan on which the loan is based, 
showing that the operational needs of the borrower will be met during 
the term of the plan;
    (iv) An analysis demonstrating that, at the time of the application, 
there is a reasonable assurance that the borrower will be able to repay 
the loan according to its terms, and a complete description of the 
operational and financial assumptions on which this demonstration is 
based;
    (v) A discussion of the borrower's five-year history and five-year 
projection for revenue, cash flow, average realized prices, and average 
realized operating costs and a demonstration that the borrower will be 
able to continue operations if the requested guarantee is approved; and
    (vi) If appropriate, a description of a plan to restructure the 
borrower's obligations, contracts, and costs. In preparing this 
description, the borrower shall jointly develop, with its existing 
secured and unsecured creditors, employees, or vendors, an agreed-upon 
plan to restructure the borrower's obligations, contracts and costs and 
incorporate this into the business plan submitted;
    (9) A description of the losses that the borrower incurred (or is 
incurring) as a result of the terrorist attacks on the United States 
that occurred on September 11, 2001, including losses due to the 
unavailability of credit on reasonable terms or a decrease in demand for 
the air carrier's services;
    (10) An analysis that demonstrates that the issuance of the 
guaranteed loan is a necessary part of maintaining a safe, efficient, 
and viable commercial aviation system in the United States and that 
credit is not reasonably available at the time of the transaction;
    (11) A description of all security (if any) for the loan, including, 
as applicable, current appraisals of real and personal property, copies 
of any appropriate environmental site assessments, and current personal 
and corporate financial statements of any guarantors for the same period 
as required for the borrower. Appraisals of real property shall be 
prepared by State licensed or certified appraisers, and be consistent 
with the ``Uniform Standards of Professional Appraisal Practice,'' 
promulgated by the Appraisal Standards Board of the Appraisal 
Foundation. Financial statements of guarantors shall be prepared by 
independent certified public accountants;
    (12) If appropriate, a description of the Federal government's 
ability to participate, contingent on the financial success of the 
borrower, in the gains of the borrower or its security holders through 
the use of such instruments as warrants, stock options, common or 
preferred stock, or other appropriate equity instruments; and
    (13) Any other information requested by the Board.
    (c) The collections of information in this section and elsewhere in 
this part that are subject to the Paperwork Reduction Act (44 U.S.C. 
3501 et seq.) have been approved by OMB and assigned control number 
0348-0059. Under the Paperwork Reduction Act, an agency may not conduct 
or sponsor, and a person is not required to respond to, a collection of 
information unless it displays a currently valid OMB control number.



Sec. 1300.17  Application evaluation.

    (a) Eligibility screening. Applications will be reviewed to 
determine whether the lender and borrower are eligible, the information 
required under Sec. 1300.16(b) is complete, and the proposed loan 
complies with applicable statutes and regulations. The Board may at any 
time reject an application that does not meet these requirements.
    (b) Evaluation criteria. Applications that are determined to be 
eligible pursuant to paragraph (a) of this section shall be subject to a 
substantive review by the Board. In addition to the general standards 
for Board issuance of Federal credit instruments set forth in

[[Page 524]]

Sec. 1300.10, the Board shall consider the following evaluation 
factors:
    (1) Reasonable assurance that the borrower will be able to repay the 
loan by the date specified in the loan document, which shall be no later 
than seven years from the date on which the first disbursement of the 
loan is made;
    (2) The adequacy of the proposed provisions to protect the Federal 
Government, including sufficiency of any security provided by the 
borrower and the percentage of guarantee requested;
    (3) The ability of the lender to administer the loan in full 
compliance with the requisite standard of care. In making this 
determination, the Board will assess:
    (i) The lender's level of regulatory capital, in the case of banking 
institutions, or net worth, in the case of other institutions;
    (ii) Whether the lender possesses the ability to administer the 
loan, including its experience with loans to air carriers; and
    (iii) Any other matter the Board deems material to its assessment of 
the lender; and
    (4) The ability of the borrower to demonstrate, to the Board's 
satisfaction, one or more of the following criteria. The Board shall 
give preference to applications that satisfy one or more of these 
criteria, giving greater preference to those applications that meet the 
greatest number of these criteria, as follows:
    (i) A demonstration that the air carrier has presented a plan 
demonstrating that its business plan is financially sound;
    (ii) A demonstration of greater participation in the loan by non-
Federal entities;
    (iii) A demonstration of greater participation in the loan by 
private entities, as opposed to public non-Federal entities;
    (iv) A demonstration that the proposed instruments would ensure that 
the Federal Government will, contingent on the financial success of the 
air carrier, participate in the gains of the air carrier and its 
security holders;
    (v) A demonstration of concessions by the air carrier's security 
holders, other creditors, or employees that will improve the financial 
condition of the air carrier in a manner that will enable it to repay 
the loan in accordance with its terms and provide commercial air 
services on a financially sound basis after repayment;
    (vi) A demonstration that guaranteed loan proceeds will be used for 
a purpose other than the payment or refinancing of existing debt;
    (vii) A demonstration that the proposed instruments contain 
financial structures that minimize the Federal government's risk and 
cost associated with making loan guarantees. Examples include, but are 
not limited to, requests for guarantees that contain the following:
    (A) A maturity period that is less than the maximum permitted under 
the rules in this part;
    (B) Pledges of collateral;
    (C) Agreements by the borrower's parent or other entities to 
reimburse the Federal government for any payments that the Federal 
government may make under the guarantee;
    (D) A grant to the Federal government of favorable priority in the 
event of bankruptcy reflecting other creditors' agreement to subordinate 
their debts as a condition of the loan guarantee;
    (E) Limitation of the borrower's issuance of dividends and/or the 
borrower's payments to its parent or subsidiaries or related companies;
    (F) Limitation of the borrower's ability to incur additional debt, 
and/or the borrower's ability to incur capital expenditures, beyond that 
set forth in the business and financial plans that the Borrower 
submitted with the application;
    (G) A demonstration of reasonable liquidity;
    (H) A demonstration of favorable debt ratios; and
    (I) A demonstration that any proceeds raised from private sector 
financing subsequent to disbursement of the federally guaranteed loan be 
used to repay the federally guaranteed loan.
    (c) No guarantee will be made if either the borrower or lender has 
an outstanding delinquent Federal debt, including tax liabilities, 
until:
    (1) The delinquent debt has been paid in full;

[[Page 525]]

    (2) A negotiated repayment schedule is established; or
    (3) Other arrangements, satisfactory to the agency responsible for 
collecting the debt are made.
    (d) Decisions by the Board. The Board shall approve or deny 
applications received on or before June 28, 2002, in a timely manner as 
such applications are received. The Board may limit the amount of a loan 
guarantee made to initial applicants to ensure that sufficient funds 
remain available for subsequent applicants. The Board shall notify the 
borrower in writing of the approval or denial of an application. 
Approvals for loan guarantees shall be conditioned upon compliance with 
Sec. 1300.18.



Sec. 1300.18  Issuance of the guarantee.

    (a) The Board's decisions to approve any application for a guarantee 
under Sec. 1300.17 is conditioned upon:
    (1) The lender and borrower obtaining any required regulatory or 
judicial approvals;
    (2) Evidence showing, to the Board's satisfaction, that the lender 
and borrower are legally authorized to enter into the loan under the 
terms and conditions submitted to the Board in the application;
    (3) The Board's receipt of the loan documents and any related 
instruments, in form and substance satisfactory to the Board, and the 
guarantee, all properly executed by the lender, borrower, and any other 
required party other than the Board; and
    (4) No material adverse change in the borrower's ability to repay 
the loan or any of the representations and warranties made in the 
application between the date of the Board's approval and the date the 
guarantee is to be issued.
    (b) The Board may withdraw its approval of an application and 
rescind its offer of guarantee if the Board determines that the lender 
or the borrower cannot, or is unwilling to, provide adequate 
documentation and proof of compliance with paragraph (a) of this section 
within the time provided for in the offer.
    (c) Only after receipt of all the documentation required by this 
section, will the Board sign and deliver the guarantee.
    (d) A borrower receiving a loan guaranteed by the Board under this 
program shall pay an annual fee, in an amount and payable as determined 
by the Board. At the time that the guarantee is issued, the Board shall 
ensure that this annual fee will escalate for each year that the loan is 
outstanding and that such annual escalation reflects the borrower's 
potential ability to obtain credit in the private credit markets, in 
addition to any other factors the Board may deem appropriate.



Sec. 1300.19  Assignment or transfer of loans.

    Neither the loan documents nor the guarantee of the Board, or any 
interest therein, may be modified, assigned, conveyed, sold or otherwise 
transferred by the lender, in whole or in part, without the prior 
written approval of the Board.



Sec. 1300.20  Lender responsibilities.

    The lender shall have such obligations and duties to the Board as 
are set forth in the guarantee.



Sec. 1300.21  Guarantee.

    The Board shall adopt a form of guarantee to be used by the Board 
under the program. Modifications to the provisions of the form of 
guarantee must be approved and adopted by the Board.



Sec. 1300.22  Termination of obligations.

    The Board shall have such rights to terminate the guarantee as are 
set forth in the guarantee.



Sec. 1300.23  Participation in guaranteed loans.

    (a) Subject to paragraph (b) of this section, a lender may 
distribute the risk of a portion of a loan guaranteed under the program 
by sale of participations therein if:
    (1) Neither the loan note nor the guarantee is assigned, conveyed, 
sold, or transferred in whole or in part;
    (2) The lender remains solely responsible for the administration of 
the loan; and
    (3) The Board's ability to assert any and all defenses available to 
it under the guarantee and the law is not adversely affected.

[[Page 526]]

    (b) The following categories of entities may purchase participations 
in loans guaranteed under the program:
    (1) Eligible lenders;
    (2) Private investment funds and insurance companies that do not 
usually invest in commercial loans;
    (3) Air Carrier company suppliers or customers, who are interested 
in participating as a means of commencing or solidifying the supplier or 
customer relationship with the borrower; or
    (4) Any other entity approved by the Board on a case-by-case basis.

[[Page 527]]



          SUBCHAPTER B--AIR TRANSPORTATION STABILIZATION BOARD





PART 1310--AIR CARRIER GUARANTEE LOAN PROGRAM ADMINISTRATIVE REGULATIONS--Table of Contents




Sec.
1310.1 Purpose and scope.
1310.2 Composition of the Board.
1310.3 Authority of the Board.
1310.4 Offices.
1310.5 Meetings and actions of the Board.
1310.6 Staff.
1310.7 Communications with the Board.
1310.8 Freedom of Information Act.
1310.9 Restrictions on lobbying.
1310.10 Government-wide debarment and suspension.
1310.11 Regulations of the Office of Management and Budget.
1310.20 Amendments.

    Authority: Title I of Pub. L. 107-42, 115 Stat. 230 (49 U.S.C. 40101 
note).

    Source: 67 FR 17259, Apr. 9, 2002, unless otherwise noted.



Sec. 1310.1  Purpose and scope.

    This part is issued by the Air Transportation Stabilization Board 
pursuant to Section 102(c)(2)(B) of the Air Transportation Safety and 
System Stabilization Act, Public Law 107-42, 115 Stat. 230 (Act). This 
part describes the Board's authorities, organizational structure, the 
rules by which the Board takes actions, and procedures for public access 
to Board records.



Sec. 1310.2  Composition of the Board.

    The Board consists of the Chairman of the Board of Governors of the 
Federal Reserve System or the designee of the Chairman, who acts as 
Chairman of the Board, the Secretary of the Treasury or the designee of 
the Secretary, the Secretary of Transportation or the designee of the 
Secretary, and the Comptroller General of the United States or the 
designee of the Comptroller General, who serves as a nonvoting member. 
The Comptroller General of the United States or the designee of the 
Comptroller General, who serves as a nonvoting member, shall not be 
involved in any of the Board's discussions or deliberations in 
connection with individual loan guarantee applications.



Sec. 1310.3  Authority of the Board.

    Pursuant to the provisions of the Act, the Board is authorized to 
guarantee loans provided to airlines by eligible lenders in accordance 
with the procedures, rules, and regulations established by the Board, to 
make the determinations authorized by the Act, and to take such other 
actions as necessary to carry out its functions specified in the Act.



Sec. 1310.4  Offices.

    The principal offices of the Board are at 1120 Vermont Avenue, NW., 
Suite 970, Washington, DC 20005.



Sec. 1310.5  Meetings and actions of the Board.

    (a) Place and frequency. The Board meets, on the call of the 
Chairman, in order to consider matters requiring action by the Board. 
The time and place for any such meeting shall be determined by the 
members of the Board.
    (b) Quorum and voting. Two voting members of the Board constitute a 
quorum for the transaction of business. All decisions and determinations 
of the Board shall be made by a majority vote of the voting members. All 
votes on determinations of the Board required by the Act shall be 
recorded in the minutes. A Board member may request that any vote be 
recorded according to individual Board members.
    (c) Agenda of meetings. As a general rule, an agenda for each 
meeting shall be distributed to members of the Board at least 48 hours 
in advance of the date of the meeting, together with copies of materials 
relevant to the agenda items.
    (d) Minutes. The Chief Administrative Officer shall keep minutes of 
each Board meeting and of action taken without a meeting, a draft of 
which is to be distributed to each member of the Board as soon as 
practicable after each

[[Page 528]]

meeting or action. To the extent practicable, the minutes of a Board 
meeting shall be corrected and approved at the next meeting of the 
Board.
    (e) Use of conference call communications equipment. Any member may 
participate in a meeting of the Board through the use of conference 
call, telephone or similar communications equipment, by means of which 
all persons participating in the meeting can simultaneously speak to and 
hear each other. Any member so participating in a meeting shall be 
deemed present for all purposes, except that the Comptroller General of 
the United States or the designee of the Comptroller General, who serves 
as a nonvoting member, shall not participate in any of the Board's 
discussions or deliberations in connection with individual loan 
guarantee applications. Actions taken by the Board at meetings conducted 
through the use of such equipment, including the votes of each member, 
shall be recorded in the usual manner in the minutes of the meetings of 
the Board.
    (f) Actions between meetings. When, in the judgment of the Chairman, 
it is desirable for the Board to consider action without holding a 
meeting, the relevant information and recommendations for action may be 
transmitted to the members by the Chief Administrative Officer and the 
voting members may communicate their votes to the Chairman in writing 
(including an action signed in counterpart by each Board member), 
electronically, or orally (including telephone communication). Any 
action taken under this paragraph has the same effect as an action taken 
at a meeting. Any such action shall be recorded in the minutes. If a 
voting member believes the matter should be considered at a meeting, the 
member may so notify the Chief Administrative Officer and the matter 
will be scheduled for consideration at a meeting.
    (g) Delegations of authority. The Board may delegate authority, 
subject to such terms and conditions as the Board deems appropriate, to 
the Executive Director, the Legal Counsel, or the Chief Administrative 
Officer, to take certain actions not required by the Act to be taken by 
the Board. All delegations shall be made pursuant to resolutions of the 
Board and recorded in writing, whether in the minutes of a meeting or 
otherwise. Any action taken pursuant to delegated authority has the 
effect of an action taken by the Board.



Sec. 1310.6  Staff.

    (a) Executive Director. The Executive Director advises and assists 
the Board in carrying out its responsibilities under the Act, provides 
general direction with respect to the administration of the Board's 
actions, directs the activities of the staff, and performs such other 
duties as the Board may require.
    (b) Legal Counsel. The Legal Counsel provides legal advice relating 
to the responsibilities of the Board and performs such other duties as 
the Executive Director may require.
    (c) Chief Administrative Officer. The Chief Administrative Officer 
sends notice of all meetings, prepares minutes of all meetings, 
maintains a complete record of all votes and actions taken by the Board, 
has custody of all records of the Board and performs such other duties 
as the Executive Director may require.



Sec. 1310.7  Communications with the Board.

    Communications with the Board shall be conducted through the staff 
of the Board.



Sec. 1310.8  Freedom of Information Act.

    While the Board is not part of the Department of the Treasury, the 
Board follows the regulations promulgated by the Department of the 
Treasury at subpart A (``Freedom of Information Act'') of part 1 
(``Disclosure of Records'') of title 31 (``Money and Finance: 
Treasury'') of the Code of Federal Regulations (CFR). The procedures of 
31 CFR 1.1 through 1.7 shall be followed for requesting access to 
records maintained by the Board, and processing such requests. Any 
reference in 31 CFR 1.1 through 1.7 to the ``Department of the 
Treasury,'' the ``Department'' or to a ``bureau,'' shall be construed to 
refer to the Board. In the event that the regulations at subpart A of 
part 1 of title 31 of the CFR subsequently are amended by the Department 
of the Treasury, the

[[Page 529]]

Board will follow those amended regulations. The following additional 
information is provided to implement 31 CFR 1.1 through 1.7 with respect 
to the Board.
    (a) Public reading room. The public reading room for the Board is 
the Treasury Department Library. The Library is located in the Main 
Treasury Building, 1500 Pennsylvania Avenue, NW., Washington, DC 20220. 
For building security purposes, visitors are required to make an 
appointment by calling 202-622-0990.
    (b) Requests for records. Initial determinations under 31 CFR 1.5(h) 
as to whether to grant requests for records of the Board will be made by 
the Chief Administrative Officer or the designate of such official. 
Requests for records should be addressed to: Freedom of Information 
Request, Air Transportation Stabilization Board, Assistant Director, 
Disclosure Services, Department of the Treasury, 1500 Pennsylvania 
Avenue, NW., Washington, DC 20220.
    (c) Administrative appeal of initial determination to deny records. 
(1) Appellate determinations under 31 CFR 1.5(i) with respect to records 
of the Board will be made by the Executive Director, or the delegate of 
such official.
    (2) Appellate determinations with respect to requests for expedited 
processing shall be made by the Executive Director or the delegate of 
such official.
    (3) Appeals should be addressed to: Freedom of Information Appeal, 
Air Transportation Stabilization Board, Assistant Director, Disclosure 
Services, Department of the Treasury, 1500 Pennsylvania Avenue, NW., 
Washington, DC 20220.
    (d) Delivery of process. Service of process will be received by the 
Legal Counsel of the Board or the delegate of such official and shall be 
delivered to the following location: Legal Counsel, Air Transportation 
Stabilization Board, 1120 Vermont Avenue, NW., Suite 970, Washington, DC 
20005.



Sec. 1310.9  Restrictions on lobbying.

    (a) While the Board is not part of the Department of the Treasury, 
the regulations promulgated by the Department of the Treasury at part 21 
(``New Restrictions on Lobbying'') of title 31 (``Money and Finance: 
Treasury'') of the Code of Federal Regulations (CFR), including the 
appendices thereto, are applicable in connection with any of the 
following covered Federal actions: the awarding of any Federal contract, 
the making of any Federal grant, the making of any Federal loan, the 
entering into of any cooperative agreement, and the extension, 
continuation, renewal, amendment, or modification of any Federal 
contract, grant, loan, or cooperative agreement. The regulations 
promulgated by the Department of the Treasury at 31 CFR part 21 also are 
applicable to a request for, or receipt of, any Federal contract, grant, 
loan or cooperative agreement; and to a request for, or receipt of, a 
commitment providing for the United States to insure or guarantee a 
loan. These terms are defined in 31 CFR 21.105.
    (b) In the event that the regulations at part 21 of title 31 of the 
CFR subsequently are amended by the Department of the Treasury, the 
Board will follow those amended regulations.



Sec. 1310.10  Governmentwide debarment and suspension.

    While the Board is not part of the Department of the Treasury, the 
regulations promulgated by the Department of the Treasury at subpart A 
(``General''), subpart B (``Effect of Action''), subpart C 
(``Debarment''), subpart D (``Suspension''), and subpart E 
(``Responsibilities of GSA, Agency and Participants'') of part 19 
(``Governmentwide Debarment and Suspension (Nonprocurement) and 
Governmentwide Requirements For Drug-Free Workplace (Grants)'') of title 
31 (``Money and Finance: Treasury'') of the Code of Federal Regulations 
(CFR) are applicable to the Board. Any reference in 31 CFR part 19 to 
the ``Department of the Treasury'' or the ``Department'' shall be 
construed to refer to the Board. In the event that the regulations at 
subpart A, B, C, D or E of part 19 of title 31 of the CFR subsequently 
are amended by the Department of the Treasury, the Board will follow 
those amended regulations.

[[Page 530]]



Sec. 1310.11  Regulations of the Office of Management and Budget.

    (a) The regulations in this part supplement the regulations of the 
Office of Management and Budget in part 1300 of this chapter in 
accordance with section 102(c)(2)(B) of the Act.
    (b) This part and part 1300 of this chapter jointly govern the 
application procedures and the requirements for issuance of Federal 
credit instruments under section 101(a)(1) of the Act.



Sec. 1310.20  Amendments.

    The procedures in this part may be adopted or amended, or new 
procedures may be adopted, only by majority vote of the Board. Authority 
to adopt or amend these procedures may not be delegated.


[[Page 531]]



                              FINDING AIDS




  --------------------------------------------------------------------

  A list of CFR titles, subtitles, chapters, subchapters and parts and 
an alphabetical list of agencies publishing in the CFR are included in 
the CFR Index and Finding Aids volume to the Code of Federal Regulations 
which is published separately and revised annually.

  Table of CFR Titles and Chapters
  Alphabetical List of Agencies Appearing in the CFR
  List of CFR Sections Affected

[[Page 533]]



                    Table of CFR Titles and Chapters




                     (Revised as of January 1, 2004)

                      Title 1--General Provisions

         I  Administrative Committee of the Federal Register 
                (Parts 1--49)
        II  Office of the Federal Register (Parts 50--299)
        IV  Miscellaneous Agencies (Parts 400--500)

                          Title 2 [Reserved]

                        Title 3--The President

         I  Executive Office of the President (Parts 100--199)

                           Title 4--Accounts

         I  General Accounting Office (Parts 1--99)

                   Title 5--Administrative Personnel

         I  Office of Personnel Management (Parts 1--1199)
        II  Merit Systems Protection Board (Parts 1200--1299)
       III  Office of Management and Budget (Parts 1300--1399)
         V  The International Organizations Employees Loyalty 
                Board (Parts 1500--1599)
        VI  Federal Retirement Thrift Investment Board (Parts 
                1600--1699)
      VIII  Office of Special Counsel (Parts 1800--1899)
        IX  Appalachian Regional Commission (Parts 1900--1999)
        XI  Armed Forces Retirement Home (Part 2100)
       XIV  Federal Labor Relations Authority, General Counsel of 
                the Federal Labor Relations Authority and Federal 
                Service Impasses Panel (Parts 2400--2499)
        XV  Office of Administration, Executive Office of the 
                President (Parts 2500--2599)
       XVI  Office of Government Ethics (Parts 2600--2699)
       XXI  Department of the Treasury (Parts 3100--3199)
      XXII  Federal Deposit Insurance Corporation (Part 3201)
     XXIII  Department of Energy (Part 3301)
      XXIV  Federal Energy Regulatory Commission (Part 3401)
       XXV  Department of the Interior (Part 3501)
      XXVI  Department of Defense (Part 3601)

[[Page 534]]

    XXVIII  Department of Justice (Part 3801)
      XXIX  Federal Communications Commission (Parts 3900--3999)
       XXX  Farm Credit System Insurance Corporation (Parts 4000--
                4099)
      XXXI  Farm Credit Administration (Parts 4100--4199)
    XXXIII  Overseas Private Investment Corporation (Part 4301)
      XXXV  Office of Personnel Management (Part 4501)
        XL  Interstate Commerce Commission (Part 5001)
       XLI  Commodity Futures Trading Commission (Part 5101)
      XLII  Department of Labor (Part 5201)
     XLIII  National Science Foundation (Part 5301)
       XLV  Department of Health and Human Services (Part 5501)
      XLVI  Postal Rate Commission (Part 5601)
     XLVII  Federal Trade Commission (Part 5701)
    XLVIII  Nuclear Regulatory Commission (Part 5801)
         L  Department of Transportation (Part 6001)
       LII  Export-Import Bank of the United States (Part 6201)
      LIII  Department of Education (Parts 6300--6399)
       LIV  Environmental Protection Agency (Part 6401)
        LV  National Endowment for the Arts (Part 6501)
       LVI  National Endowment for the Humanities (Part 6601)
      LVII  General Services Administration (Part 6701)
     LVIII  Board of Governors of the Federal Reserve System (Part 
                6801)
       LIX  National Aeronautics and Space Administration (Part 
                6901)
        LX  United States Postal Service (Part 7001)
       LXI  National Labor Relations Board (Part 7101)
      LXII  Equal Employment Opportunity Commission (Part 7201)
     LXIII  Inter-American Foundation (Part 7301)
       LXV  Department of Housing and Urban Development (Part 
                7501)
      LXVI  National Archives and Records Administration (Part 
                7601)
     LXVII  Institute of Museum and Library Services (Part 7701)
      LXIX  Tennessee Valley Authority (Part 7901)
      LXXI  Consumer Product Safety Commission (Part 8101)
    LXXIII  Department of Agriculture (Part 8301)
     LXXIV  Federal Mine Safety and Health Review Commission (Part 
                8401)
     LXXVI  Federal Retirement Thrift Investment Board (Part 8601)
    LXXVII  Office of Management and Budget (Part 8701)

                      Title 6--Homeland Security

         I  Department of Homeland Security, Office of the 
                Secretary (Parts 0--99)

[[Page 535]]

                         Title 7--Agriculture

            Subtitle A--Office of the Secretary of Agriculture 
                (Parts 0--26)
            Subtitle B--Regulations of the Department of 
                Agriculture
         I  Agricultural Marketing Service (Standards, 
                Inspections, Marketing Practices), Department of 
                Agriculture (Parts 27--209)
        II  Food and Nutrition Service, Department of Agriculture 
                (Parts 210--299)
       III  Animal and Plant Health Inspection Service, Department 
                of Agriculture (Parts 300--399)
        IV  Federal Crop Insurance Corporation, Department of 
                Agriculture (Parts 400--499)
         V  Agricultural Research Service, Department of 
                Agriculture (Parts 500--599)
        VI  Natural Resources Conservation Service, Department of 
                Agriculture (Parts 600--699)
       VII  Farm Service Agency, Department of Agriculture (Parts 
                700--799)
      VIII  Grain Inspection, Packers and Stockyards 
                Administration (Federal Grain Inspection Service), 
                Department of Agriculture (Parts 800--899)
        IX  Agricultural Marketing Service (Marketing Agreements 
                and Orders; Fruits, Vegetables, Nuts), Department 
                of Agriculture (Parts 900--999)
         X  Agricultural Marketing Service (Marketing Agreements 
                and Orders; Milk), Department of Agriculture 
                (Parts 1000--1199)
        XI  Agricultural Marketing Service (Marketing Agreements 
                and Orders; Miscellaneous Commodities), Department 
                of Agriculture (Parts 1200--1299)
       XIV  Commodity Credit Corporation, Department of 
                Agriculture (Parts 1400--1499)
        XV  Foreign Agricultural Service, Department of 
                Agriculture (Parts 1500--1599)
       XVI  Rural Telephone Bank, Department of Agriculture (Parts 
                1600--1699)
      XVII  Rural Utilities Service, Department of Agriculture 
                (Parts 1700--1799)
     XVIII  Rural Housing Service, Rural Business-Cooperative 
                Service, Rural Utilities Service, and Farm Service 
                Agency, Department of Agriculture (Parts 1800--
                2099)
        XX  Local Television Loan Guarantee Board (Parts 2200--
                2299)
      XXVI  Office of Inspector General, Department of Agriculture 
                (Parts 2600--2699)
     XXVII  Office of Information Resources Management, Department 
                of Agriculture (Parts 2700--2799)
    XXVIII  Office of Operations, Department of Agriculture (Parts 
                2800--2899)
      XXIX  Office of Energy, Department of Agriculture (Parts 
                2900--2999)
       XXX  Office of the Chief Financial Officer, Department of 
                Agriculture (Parts 3000--3099)

[[Page 536]]

      XXXI  Office of Environmental Quality, Department of 
                Agriculture (Parts 3100--3199)
     XXXII  Office of Procurement and Property Management, 
                Department of Agriculture (Parts 3200--3299)
    XXXIII  Office of Transportation, Department of Agriculture 
                (Parts 3300--3399)
     XXXIV  Cooperative State Research, Education, and Extension 
                Service, Department of Agriculture (Parts 3400--
                3499)
      XXXV  Rural Housing Service, Department of Agriculture 
                (Parts 3500--3599)
     XXXVI  National Agricultural Statistics Service, Department 
                of Agriculture (Parts 3600--3699)
    XXXVII  Economic Research Service, Department of Agriculture 
                (Parts 3700--3799)
   XXXVIII  World Agricultural Outlook Board, Department of 
                Agriculture (Parts 3800--3899)
       XLI  [Reserved]
      XLII  Rural Business-Cooperative Service and Rural Utilities 
                Service, Department of Agriculture (Parts 4200--
                4299)

                    Title 8--Aliens and Nationality

         I  Department of Homeland Security (Immigration and 
                Naturalization) (Parts 1--499)
         V  Executive Office for Immigration Review, Department of 
                Justice (Parts 1000--1399)

                 Title 9--Animals and Animal Products

         I  Animal and Plant Health Inspection Service, Department 
                of Agriculture (Parts 1--199)
        II  Grain Inspection, Packers and Stockyards 
                Administration (Packers and Stockyards Programs), 
                Department of Agriculture (Parts 200--299)
       III  Food Safety and Inspection Service, Department of 
                Agriculture (Parts 300--599)

                           Title 10--Energy

         I  Nuclear Regulatory Commission (Parts 0--199)
        II  Department of Energy (Parts 200--699)
       III  Department of Energy (Parts 700--999)
         X  Department of Energy (General Provisions) (Parts 1000-
                -1099)
      XVII  Defense Nuclear Facilities Safety Board (Parts 1700--
                1799)
     XVIII  Northeast Interstate Low-Level Radioactive Waste 
                Commission (Part 1800)

[[Page 537]]

                      Title 11--Federal Elections

         I  Federal Election Commission (Parts 1--9099)

                      Title 12--Banks and Banking

         I  Comptroller of the Currency, Department of the 
                Treasury (Parts 1--199)
        II  Federal Reserve System (Parts 200--299)
       III  Federal Deposit Insurance Corporation (Parts 300--399)
        IV  Export-Import Bank of the United States (Parts 400--
                499)
         V  Office of Thrift Supervision, Department of the 
                Treasury (Parts 500--599)
        VI  Farm Credit Administration (Parts 600--699)
       VII  National Credit Union Administration (Parts 700--799)
      VIII  Federal Financing Bank (Parts 800--899)
        IX  Federal Housing Finance Board (Parts 900--999)
        XI  Federal Financial Institutions Examination Council 
                (Parts 1100--1199)
       XIV  Farm Credit System Insurance Corporation (Parts 1400--
                1499)
        XV  Department of the Treasury (Parts 1500--1599)
      XVII  Office of Federal Housing Enterprise Oversight, 
                Department of Housing and Urban Development (Parts 
                1700--1799)
     XVIII  Community Development Financial Institutions Fund, 
                Department of the Treasury (Parts 1800--1899)

               Title 13--Business Credit and Assistance

         I  Small Business Administration (Parts 1--199)
       III  Economic Development Administration, Department of 
                Commerce (Parts 300--399)
        IV  Emergency Steel Guarantee Loan Board, Department of 
                Commerce (Parts 400--499)
         V  Emergency Oil and Gas Guaranteed Loan Board, 
                Department of Commerce (Parts 500--599)

                    Title 14--Aeronautics and Space

         I  Federal Aviation Administration, Department of 
                Transportation (Parts 1--199)
        II  Office of the Secretary, Department of Transportation 
                (Aviation Proceedings) (Parts 200--399)
       III  Commercial Space Transportation, Federal Aviation 
                Administration, Department of Transportation 
                (Parts 400--499)
         V  National Aeronautics and Space Administration (Parts 
                1200--1299)
        VI  Air Transportation System Stabilization (Parts 1300--
                1399)

[[Page 538]]

                 Title 15--Commerce and Foreign Trade

            Subtitle A--Office of the Secretary of Commerce (Parts 
                0--29)
            Subtitle B--Regulations Relating to Commerce and 
                Foreign Trade
         I  Bureau of the Census, Department of Commerce (Parts 
                30--199)
        II  National Institute of Standards and Technology, 
                Department of Commerce (Parts 200--299)
       III  International Trade Administration, Department of 
                Commerce (Parts 300--399)
        IV  Foreign-Trade Zones Board, Department of Commerce 
                (Parts 400--499)
       VII  Bureau of Industry and Security, Department of 
                Commerce (Parts 700--799)
      VIII  Bureau of Economic Analysis, Department of Commerce 
                (Parts 800--899)
        IX  National Oceanic and Atmospheric Administration, 
                Department of Commerce (Parts 900--999)
        XI  Technology Administration, Department of Commerce 
                (Parts 1100--1199)
      XIII  East-West Foreign Trade Board (Parts 1300--1399)
       XIV  Minority Business Development Agency (Parts 1400--
                1499)
            Subtitle C--Regulations Relating to Foreign Trade 
                Agreements
        XX  Office of the United States Trade Representative 
                (Parts 2000--2099)
            Subtitle D--Regulations Relating to Telecommunications 
                and Information
     XXIII  National Telecommunications and Information 
                Administration, Department of Commerce (Parts 
                2300--2399)

                    Title 16--Commercial Practices

         I  Federal Trade Commission (Parts 0--999)
        II  Consumer Product Safety Commission (Parts 1000--1799)

             Title 17--Commodity and Securities Exchanges

         I  Commodity Futures Trading Commission (Parts 1--199)
        II  Securities and Exchange Commission (Parts 200--399)
        IV  Department of the Treasury (Parts 400--499)

          Title 18--Conservation of Power and Water Resources

         I  Federal Energy Regulatory Commission, Department of 
                Energy (Parts 1--399)
       III  Delaware River Basin Commission (Parts 400--499)
        VI  Water Resources Council (Parts 700--799)

[[Page 539]]

      VIII  Susquehanna River Basin Commission (Parts 800--899)
      XIII  Tennessee Valley Authority (Parts 1300--1399)

                       Title 19--Customs Duties

         I  Bureau of Customs and Border Protection, Department of 
                Homeland Security; Department of the Treasury 
                (Parts 0--199)
        II  United States International Trade Commission (Parts 
                200--299)
       III  International Trade Administration, Department of 
                Commerce (Parts 300--399)
        IV  Bureau of Immigration and Customs Enforcement, 
                Department of Homeland Security (Parts 400--599)

                     Title 20--Employees' Benefits

         I  Office of Workers' Compensation Programs, Department 
                of Labor (Parts 1--199)
        II  Railroad Retirement Board (Parts 200--399)
       III  Social Security Administration (Parts 400--499)
        IV  Employees' Compensation Appeals Board, Department of 
                Labor (Parts 500--599)
         V  Employment and Training Administration, Department of 
                Labor (Parts 600--699)
        VI  Employment Standards Administration, Department of 
                Labor (Parts 700--799)
       VII  Benefits Review Board, Department of Labor (Parts 800-
                -899)
      VIII  Joint Board for the Enrollment of Actuaries (Parts 
                900--999)
        IX  Office of the Assistant Secretary for Veterans' 
                Employment and Training, Department of Labor 
                (Parts 1000--1099)

                       Title 21--Food and Drugs

         I  Food and Drug Administration, Department of Health and 
                Human Services (Parts 1--1299)
        II  Drug Enforcement Administration, Department of Justice 
                (Parts 1300--1399)
       III  Office of National Drug Control Policy (Parts 1400--
                1499)

                      Title 22--Foreign Relations

         I  Department of State (Parts 1--199)
        II  Agency for International Development (Parts 200--299)
       III  Peace Corps (Parts 300--399)
        IV  International Joint Commission, United States and 
                Canada (Parts 400--499)
         V  Broadcasting Board of Governors (Parts 500--599)
       VII  Overseas Private Investment Corporation (Parts 700--
                799)
        IX  Foreign Service Grievance Board Regulations (Parts 
                900--999)

[[Page 540]]

         X  Inter-American Foundation (Parts 1000--1099)
        XI  International Boundary and Water Commission, United 
                States and Mexico, United States Section (Parts 
                1100--1199)
       XII  United States International Development Cooperation 
                Agency (Parts 1200--1299)
       XIV  Foreign Service Labor Relations Board; Federal Labor 
                Relations Authority; General Counsel of the 
                Federal Labor Relations Authority; and the Foreign 
                Service Impasse Disputes Panel (Parts 1400--1499)
        XV  African Development Foundation (Parts 1500--1599)
       XVI  Japan-United States Friendship Commission (Parts 1600-
                -1699)
      XVII  United States Institute of Peace (Parts 1700--1799)

                          Title 23--Highways

         I  Federal Highway Administration, Department of 
                Transportation (Parts 1--999)
        II  National Highway Traffic Safety Administration and 
                Federal Highway Administration, Department of 
                Transportation (Parts 1200--1299)
       III  National Highway Traffic Safety Administration, 
                Department of Transportation (Parts 1300--1399)

                Title 24--Housing and Urban Development

            Subtitle A--Office of the Secretary, Department of 
                Housing and Urban Development (Parts 0--99)
            Subtitle B--Regulations Relating to Housing and Urban 
                Development
         I  Office of Assistant Secretary for Equal Opportunity, 
                Department of Housing and Urban Development (Parts 
                100--199)
        II  Office of Assistant Secretary for Housing-Federal 
                Housing Commissioner, Department of Housing and 
                Urban Development (Parts 200--299)
       III  Government National Mortgage Association, Department 
                of Housing and Urban Development (Parts 300--399)
        IV  Office of Housing and Office of Multifamily Housing 
                Assistance Restructuring, Department of Housing 
                and Urban Development (Parts 400--499)
         V  Office of Assistant Secretary for Community Planning 
                and Development, Department of Housing and Urban 
                Development (Parts 500--599)
        VI  Office of Assistant Secretary for Community Planning 
                and Development, Department of Housing and Urban 
                Development (Parts 600--699) [Reserved]
       VII  Office of the Secretary, Department of Housing and 
                Urban Development (Housing Assistance Programs and 
                Public and Indian Housing Programs) (Parts 700--
                799)

[[Page 541]]

      VIII  Office of the Assistant Secretary for Housing--Federal 
                Housing Commissioner, Department of Housing and 
                Urban Development (Section 8 Housing Assistance 
                Programs, Section 202 Direct Loan Program, Section 
                202 Supportive Housing for the Elderly Program and 
                Section 811 Supportive Housing for Persons With 
                Disabilities Program) (Parts 800--899)
        IX  Office of Assistant Secretary for Public and Indian 
                Housing, Department of Housing and Urban 
                Development (Parts 900--1699)
         X  Office of Assistant Secretary for Housing--Federal 
                Housing Commissioner, Department of Housing and 
                Urban Development (Interstate Land Sales 
                Registration Program) (Parts 1700--1799)
       XII  Office of Inspector General, Department of Housing and 
                Urban Development (Parts 2000--2099)
        XX  Office of Assistant Secretary for Housing--Federal 
                Housing Commissioner, Department of Housing and 
                Urban Development (Parts 3200--3899)
       XXV  Neighborhood Reinvestment Corporation (Parts 4100--
                4199)

                           Title 25--Indians

         I  Bureau of Indian Affairs, Department of the Interior 
                (Parts 1--299)
        II  Indian Arts and Crafts Board, Department of the 
                Interior (Parts 300--399)
       III  National Indian Gaming Commission, Department of the 
                Interior (Parts 500--599)
        IV  Office of Navajo and Hopi Indian Relocation (Parts 
                700--799)
         V  Bureau of Indian Affairs, Department of the Interior, 
                and Indian Health Service, Department of Health 
                and Human Services (Part 900)
        VI  Office of the Assistant Secretary-Indian Affairs, 
                Department of the Interior (Parts 1000--1199)
       VII  Office of the Special Trustee for American Indians, 
                Department of the Interior (Part 1200)

                      Title 26--Internal Revenue

         I  Internal Revenue Service, Department of the Treasury 
                (Parts 1--899)

           Title 27--Alcohol, Tobacco Products and Firearms

         I  Alcohol and Tobacco Tax and Trade Bureau, Department 
                of the Treasury (Parts 1--399)
        II  Bureau of Alcohol, Tobacco, Firearms, and Explosives, 
                Department of Justice (Parts 400--699)

                   Title 28--Judicial Administration

         I  Department of Justice (Parts 0--299)

[[Page 542]]

       III  Federal Prison Industries, Inc., Department of Justice 
                (Parts 300--399)
         V  Bureau of Prisons, Department of Justice (Parts 500--
                599)
        VI  Offices of Independent Counsel, Department of Justice 
                (Parts 600--699)
       VII  Office of Independent Counsel (Parts 700--799)
      VIII  Court Services and Offender Supervision Agency for the 
                District of Columbia (Parts 800--899)
        IX  National Crime Prevention and Privacy Compact Council 
                (Parts 900--999)
        XI  Department of Justice and Department of State (Parts 
                1100--1199)

                            Title 29--Labor

            Subtitle A--Office of the Secretary of Labor (Parts 0-
                -99)
            Subtitle B--Regulations Relating to Labor
         I  National Labor Relations Board (Parts 100--199)
        II  Office of Labor-Management Standards, Department of 
                Labor (Parts 200--299)
       III  National Railroad Adjustment Board (Parts 300--399)
        IV  Office of Labor-Management Standards, Department of 
                Labor (Parts 400--499)
         V  Wage and Hour Division, Department of Labor (Parts 
                500--899)
        IX  Construction Industry Collective Bargaining Commission 
                (Parts 900--999)
         X  National Mediation Board (Parts 1200--1299)
       XII  Federal Mediation and Conciliation Service (Parts 
                1400--1499)
       XIV  Equal Employment Opportunity Commission (Parts 1600--
                1699)
      XVII  Occupational Safety and Health Administration, 
                Department of Labor (Parts 1900--1999)
        XX  Occupational Safety and Health Review Commission 
                (Parts 2200--2499)
       XXV  Employee Benefits Security Administration, Department 
                of Labor (Parts 2500--2599)
     XXVII  Federal Mine Safety and Health Review Commission 
                (Parts 2700--2799)
        XL  Pension Benefit Guaranty Corporation (Parts 4000--
                4999)

                      Title 30--Mineral Resources

         I  Mine Safety and Health Administration, Department of 
                Labor (Parts 1--199)
        II  Minerals Management Service, Department of the 
                Interior (Parts 200--299)
       III  Board of Surface Mining and Reclamation Appeals, 
                Department of the Interior (Parts 300--399)
        IV  Geological Survey, Department of the Interior (Parts 
                400--499)

[[Page 543]]

       VII  Office of Surface Mining Reclamation and Enforcement, 
                Department of the Interior (Parts 700--999)

                 Title 31--Money and Finance: Treasury

            Subtitle A--Office of the Secretary of the Treasury 
                (Parts 0--50)
            Subtitle B--Regulations Relating to Money and Finance
         I  Monetary Offices, Department of the Treasury (Parts 
                51--199)
        II  Fiscal Service, Department of the Treasury (Parts 200-
                -399)
        IV  Secret Service, Department of the Treasury (Parts 400-
                -499)
         V  Office of Foreign Assets Control, Department of the 
                Treasury (Parts 500--599)
        VI  Bureau of Engraving and Printing, Department of the 
                Treasury (Parts 600--699)
       VII  Federal Law Enforcement Training Center, Department of 
                the Treasury (Parts 700--799)
      VIII  Office of International Investment, Department of the 
                Treasury (Parts 800--899)
        IX  Federal Claims Collection Standards (Department of the 
                Treasury--Department of Justice) (Parts 900--999)

                      Title 32--National Defense

            Subtitle A--Department of Defense
         I  Office of the Secretary of Defense (Parts 1--399)
         V  Department of the Army (Parts 400--699)
        VI  Department of the Navy (Parts 700--799)
       VII  Department of the Air Force (Parts 800--1099)
            Subtitle B--Other Regulations Relating to National 
                Defense
       XII  Defense Logistics Agency (Parts 1200--1299)
       XVI  Selective Service System (Parts 1600--1699)
     XVIII  National Counterintelligence Center (Parts 1800--1899)
       XIX  Central Intelligence Agency (Parts 1900--1999)
        XX  Information Security Oversight Office, National 
                Archives and Records Administration (Parts 2000--
                2099)
       XXI  National Security Council (Parts 2100--2199)
      XXIV  Office of Science and Technology Policy (Parts 2400--
                2499)
     XXVII  Office for Micronesian Status Negotiations (Parts 
                2700--2799)
    XXVIII  Office of the Vice President of the United States 
                (Parts 2800--2899)

               Title 33--Navigation and Navigable Waters

         I  Coast Guard, Department of Homeland Security (Parts 1-
                -199)
        II  Corps of Engineers, Department of the Army (Parts 200-
                -399)

[[Page 544]]

        IV  Saint Lawrence Seaway Development Corporation, 
                Department of Transportation (Parts 400--499)

                          Title 34--Education

            Subtitle A--Office of the Secretary, Department of 
                Education (Parts 1--99)
            Subtitle B--Regulations of the Offices of the 
                Department of Education
         I  Office for Civil Rights, Department of Education 
                (Parts 100--199)
        II  Office of Elementary and Secondary Education, 
                Department of Education (Parts 200--299)
       III  Office of Special Education and Rehabilitative 
                Services, Department of Education (Parts 300--399)
        IV  Office of Vocational and Adult Education, Department 
                of Education (Parts 400--499)
         V  Office of Bilingual Education and Minority Languages 
                Affairs, Department of Education (Parts 500--599)
        VI  Office of Postsecondary Education, Department of 
                Education (Parts 600--699)
        XI  National Institute for Literacy (Parts 1100--1199)
            Subtitle C--Regulations Relating to Education
       XII  National Council on Disability (Parts 1200--1299)

                        Title 35--Panama Canal

         I  Panama Canal Regulations (Parts 1--299)

             Title 36--Parks, Forests, and Public Property

         I  National Park Service, Department of the Interior 
                (Parts 1--199)
        II  Forest Service, Department of Agriculture (Parts 200--
                299)
       III  Corps of Engineers, Department of the Army (Parts 300-
                -399)
        IV  American Battle Monuments Commission (Parts 400--499)
         V  Smithsonian Institution (Parts 500--599)
       VII  Library of Congress (Parts 700--799)
      VIII  Advisory Council on Historic Preservation (Parts 800--
                899)
        IX  Pennsylvania Avenue Development Corporation (Parts 
                900--999)
         X  Presidio Trust (Parts 1000--1099)
        XI  Architectural and Transportation Barriers Compliance 
                Board (Parts 1100--1199)
       XII  National Archives and Records Administration (Parts 
                1200--1299)
        XV  Oklahoma City National Memorial Trust (Part 1501)
       XVI  Morris K. Udall Scholarship and Excellence in National 
                Environmental Policy Foundation (Parts 1600--1699)

[[Page 545]]

             Title 37--Patents, Trademarks, and Copyrights

         I  United States Patent and Trademark Office, Department 
                of Commerce (Parts 1--199)
        II  Copyright Office, Library of Congress (Parts 200--299)
        IV  Assistant Secretary for Technology Policy, Department 
                of Commerce (Parts 400--499)
         V  Under Secretary for Technology, Department of Commerce 
                (Parts 500--599)

           Title 38--Pensions, Bonuses, and Veterans' Relief

         I  Department of Veterans Affairs (Parts 0--99)

                       Title 39--Postal Service

         I  United States Postal Service (Parts 1--999)
       III  Postal Rate Commission (Parts 3000--3099)

                  Title 40--Protection of Environment

         I  Environmental Protection Agency (Parts 1--1099)
        IV  Environmental Protection Agency and Department of 
                Justice (Parts 1400--1499)
         V  Council on Environmental Quality (Parts 1500--1599)
        VI  Chemical Safety and Hazard Investigation Board (Parts 
                1600--1699)
       VII  Environmental Protection Agency and Department of 
                Defense; Uniform National Discharge Standards for 
                Vessels of the Armed Forces (Parts 1700--1799)

          Title 41--Public Contracts and Property Management

            Subtitle B--Other Provisions Relating to Public 
                Contracts
        50  Public Contracts, Department of Labor (Parts 50-1--50-
                999)
        51  Committee for Purchase From People Who Are Blind or 
                Severely Disabled (Parts 51-1--51-99)
        60  Office of Federal Contract Compliance Programs, Equal 
                Employment Opportunity, Department of Labor (Parts 
                60-1--60-999)
        61  Office of the Assistant Secretary for Veterans' 
                Employment and Training Service, Department of 
                Labor (Parts 61-1--61-999)
            Subtitle C--Federal Property Management Regulations 
                System
       101  Federal Property Management Regulations (Parts 101-1--
                101-99)
       102  Federal Management Regulation (Parts 102-1--102-299)
       105  General Services Administration (Parts 105-1--105-999)
       109  Department of Energy Property Management Regulations 
                (Parts 109-1--109-99)
       114  Department of the Interior (Parts 114-1--114-99)
       115  Environmental Protection Agency (Parts 115-1--115-99)

[[Page 546]]

       128  Department of Justice (Parts 128-1--128-99)
            Subtitle D--Other Provisions Relating to Property 
                Management [Reserved]
            Subtitle E--Federal Information Resources Management 
                Regulations System
       201  Federal Information Resources Management Regulation 
                (Parts 201-1--201-99) [Reserved]
            Subtitle F--Federal Travel Regulation System
       300  General (Parts 300-1--300-99)
       301  Temporary Duty (TDY) Travel Allowances (Parts 301-1--
                301-99)
       302  Relocation Allowances (Parts 302-1--302-99)
       303  Payment of Expenses Connected with the Death of 
                Certain Employees (Part 303-70)
       304  Payment of Travel Expenses from a Non-Federal Source 
                (Parts 304-1--304-99)

                        Title 42--Public Health

         I  Public Health Service, Department of Health and Human 
                Services (Parts 1--199)
        IV  Centers for Medicare & Medicaid Services, Department 
                of Health and Human Services (Parts 400--499)
         V  Office of Inspector General-Health Care, Department of 
                Health and Human Services (Parts 1000--1999)

                   Title 43--Public Lands: Interior

            Subtitle A--Office of the Secretary of the Interior 
                (Parts 1--199)
            Subtitle B--Regulations Relating to Public Lands
         I  Bureau of Reclamation, Department of the Interior 
                (Parts 200--499)
        II  Bureau of Land Management, Department of the Interior 
                (Parts 1000--9999)
       III  Utah Reclamation Mitigation and Conservation 
                Commission (Parts 10000--10010)

             Title 44--Emergency Management and Assistance

         I  Federal Emergency Management Agency, Department of 
                Homeland Security (Parts 0--399)
        IV  Department of Commerce and Department of 
                Transportation (Parts 400--499)

                       Title 45--Public Welfare

            Subtitle A--Department of Health and Human Services 
                (Parts 1--199)
            Subtitle B--Regulations Relating to Public Welfare

[[Page 547]]

        II  Office of Family Assistance (Assistance Programs), 
                Administration for Children and Families, 
                Department of Health and Human Services (Parts 
                200--299)
       III  Office of Child Support Enforcement (Child Support 
                Enforcement Program), Administration for Children 
                and Families, Department of Health and Human 
                Services (Parts 300--399)
        IV  Office of Refugee Resettlement, Administration for 
                Children and Families, Department of Health and 
                Human Services (Parts 400--499)
         V  Foreign Claims Settlement Commission of the United 
                States, Department of Justice (Parts 500--599)
        VI  National Science Foundation (Parts 600--699)
       VII  Commission on Civil Rights (Parts 700--799)
      VIII  Office of Personnel Management (Parts 800--899)
         X  Office of Community Services, Administration for 
                Children and Families, Department of Health and 
                Human Services (Parts 1000--1099)
        XI  National Foundation on the Arts and the Humanities 
                (Parts 1100--1199)
       XII  Corporation for National and Community Service (Parts 
                1200--1299)
      XIII  Office of Human Development Services, Department of 
                Health and Human Services (Parts 1300--1399)
       XVI  Legal Services Corporation (Parts 1600--1699)
      XVII  National Commission on Libraries and Information 
                Science (Parts 1700--1799)
     XVIII  Harry S. Truman Scholarship Foundation (Parts 1800--
                1899)
       XXI  Commission on Fine Arts (Parts 2100--2199)
     XXIII  Arctic Research Commission (Part 2301)
      XXIV  James Madison Memorial Fellowship Foundation (Parts 
                2400--2499)
       XXV  Corporation for National and Community Service (Parts 
                2500--2599)

                          Title 46--Shipping

         I  Coast Guard, Department of Homeland Security (Parts 1-
                -199)
        II  Maritime Administration, Department of Transportation 
                (Parts 200--399)
       III  Coast Guard (Great Lakes Pilotage), Department of 
                Homeland Security (Parts 400--499)
        IV  Federal Maritime Commission (Parts 500--599)

                      Title 47--Telecommunication

         I  Federal Communications Commission (Parts 0--199)
        II  Office of Science and Technology Policy and National 
                Security Council (Parts 200--299)

[[Page 548]]

       III  National Telecommunications and Information 
                Administration, Department of Commerce (Parts 300-
                -399)

           Title 48--Federal Acquisition Regulations System

         1  Federal Acquisition Regulation (Parts 1--99)
         2  Department of Defense (Parts 200--299)
         3  Department of Health and Human Services (Parts 300--
                399)
         4  Department of Agriculture (Parts 400--499)
         5  General Services Administration (Parts 500--599)
         6  Department of State (Parts 600--699)
         7  United States Agency for International Development 
                (Parts 700--799)
         8  Department of Veterans Affairs (Parts 800--899)
         9  Department of Energy (Parts 900--999)
        10  Department of the Treasury (Parts 1000--1099)
        12  Department of Transportation (Parts 1200--1299)
        13  Department of Commerce (Parts 1300--1399)
        14  Department of the Interior (Parts 1400--1499)
        15  Environmental Protection Agency (Parts 1500--1599)
        16  Office of Personnel Management, Federal Employees 
                Health Benefits Acquisition Regulation (Parts 
                1600--1699)
        17  Office of Personnel Management (Parts 1700--1799)
        18  National Aeronautics and Space Administration (Parts 
                1800--1899)
        19  Broadcasting Board of Governors (Parts 1900--1999)
        20  Nuclear Regulatory Commission (Parts 2000--2099)
        21  Office of Personnel Management, Federal Employees 
                Group Life Insurance Federal Acquisition 
                Regulation (Parts 2100--2199)
        23  Social Security Administration (Parts 2300--2399)
        24  Department of Housing and Urban Development (Parts 
                2400--2499)
        25  National Science Foundation (Parts 2500--2599)
        28  Department of Justice (Parts 2800--2899)
        29  Department of Labor (Parts 2900--2999)
        30  Department of Homeland Security, Homeland Security 
                Acquisition Regulation (HSAR) (Parts 3000--3099)
        34  Department of Education Acquisition Regulation (Parts 
                3400--3499)
        35  Panama Canal Commission (Parts 3500--3599)
        44  Federal Emergency Management Agency (Parts 4400--4499)
        51  Department of the Army Acquisition Regulations (Parts 
                5100--5199)
        52  Department of the Navy Acquisition Regulations (Parts 
                5200--5299)
        53  Department of the Air Force Federal Acquisition 
                Regulation Supplement (Parts 5300--5399)

[[Page 549]]

        54  Defense Logistics Agency, Department of Defense (Parts 
                5400--5499)
        57  African Development Foundation (Parts 5700--5799)
        61  General Services Administration Board of Contract 
                Appeals (Parts 6100--6199)
        63  Department of Transportation Board of Contract Appeals 
                (Parts 6300--6399)
        99  Cost Accounting Standards Board, Office of Federal 
                Procurement Policy, Office of Management and 
                Budget (Parts 9900--9999)

                       Title 49--Transportation

            Subtitle A--Office of the Secretary of Transportation 
                (Parts 1--99)
            Subtitle B--Other Regulations Relating to 
                Transportation
         I  Research and Special Programs Administration, 
                Department of Transportation (Parts 100--199)
        II  Federal Railroad Administration, Department of 
                Transportation (Parts 200--299)
       III  Federal Motor Carrier Safety Administration, 
                Department of Transportation (Parts 300--399)
        IV  Coast Guard, Department of Homeland Security (Parts 
                400--499)
         V  National Highway Traffic Safety Administration, 
                Department of Transportation (Parts 500--599)
        VI  Federal Transit Administration, Department of 
                Transportation (Parts 600--699)
       VII  National Railroad Passenger Corporation (AMTRAK) 
                (Parts 700--799)
      VIII  National Transportation Safety Board (Parts 800--999)
         X  Surface Transportation Board, Department of 
                Transportation (Parts 1000--1399)
        XI  Bureau of Transportation Statistics, Department of 
                Transportation (Parts 1400--1499)
       XII  Transportation Security Administration, Department of 
                Homeland Security (Parts 1500--1599)

                   Title 50--Wildlife and Fisheries

         I  United States Fish and Wildlife Service, Department of 
                the Interior (Parts 1--199)
        II  National Marine Fisheries Service, National Oceanic 
                and Atmospheric Administration, Department of 
                Commerce (Parts 200--299)
       III  International Fishing and Related Activities (Parts 
                300--399)
        IV  Joint Regulations (United States Fish and Wildlife 
                Service, Department of the Interior and National 
                Marine Fisheries Service, National Oceanic and 
                Atmospheric Administration, Department of 
                Commerce); Endangered Species Committee 
                Regulations (Parts 400--499)

[[Page 550]]

         V  Marine Mammal Commission (Parts 500--599)
        VI  Fishery Conservation and Management, National Oceanic 
                and Atmospheric Administration, Department of 
                Commerce (Parts 600--699)

                      CFR Index and Finding Aids

            Subject/Agency Index
            List of Agency Prepared Indexes
            Parallel Tables of Statutory Authorities and Rules
            List of CFR Titles, Chapters, Subchapters, and Parts
            Alphabetical List of Agencies Appearing in the CFR

[[Page 551]]





           Alphabetical List of Agencies Appearing in the CFR




                     (Revised as of January 1, 2004)

                                                  CFR Title, Subtitle or 
                     Agency                               Chapter

Administrative Committee of the Federal Register  1, I
Advanced Research Projects Agency                 32, I
Advisory Council on Historic Preservation         36, VIII
African Development Foundation                    22, XV
  Federal Acquisition Regulation                  48, 57
Agency for International Development, United      22, II
     States
  Federal Acquisition Regulation                  48, 7
Agricultural Marketing Service                    7, I, IX, X, XI
Agricultural Research Service                     7, V
Agriculture Department                            5, LXXIII
  Agricultural Marketing Service                  7, I, IX, X, XI
  Agricultural Research Service                   7, V
  Animal and Plant Health Inspection Service      7, III; 9, I
  Chief Financial Officer, Office of              7, XXX
  Commodity Credit Corporation                    7, XIV
  Cooperative State Research, Education, and      7, XXXIV
       Extension Service
  Economic Research Service                       7, XXXVII
  Energy, Office of                               7, XXIX
  Environmental Quality, Office of                7, XXXI
  Farm Service Agency                             7, VII, XVIII
  Federal Acquisition Regulation                  48, 4
  Federal Crop Insurance Corporation              7, IV
  Food and Nutrition Service                      7, II
  Food Safety and Inspection Service              9, III
  Foreign Agricultural Service                    7, XV
  Forest Service                                  36, II
  Grain Inspection, Packers and Stockyards        7, VIII; 9, II
       Administration
  Information Resources Management, Office of     7, XXVII
  Inspector General, Office of                    7, XXVI
  National Agricultural Library                   7, XLI
  National Agricultural Statistics Service        7, XXXVI
  Natural Resources Conservation Service          7, VI
  Operations, Office of                           7, XXVIII
  Procurement and Property Management, Office of  7, XXXII
  Rural Business-Cooperative Service              7, XVIII, XLII
  Rural Development Administration                7, XLII
  Rural Housing Service                           7, XVIII, XXXV
  Rural Telephone Bank                            7, XVI
  Rural Utilities Service                         7, XVII, XVIII, XLII
  Secretary of Agriculture, Office of             7, Subtitle A
  Transportation, Office of                       7, XXXIII
  World Agricultural Outlook Board                7, XXXVIII
Air Force Department                              32, VII
  Federal Acquisition Regulation Supplement       48, 53
Air Transportation Stabilization Board            14, VI
Alcohol and Tobacco Tax and Trade Bureau          27, I
Alcohol, Tobacco, Firearms, and Explosives,       27, II
     Bureau of
AMTRAK                                            49, VII
American Battle Monuments Commission              36, IV
American Indians, Office of the Special Trustee   25, VII
Animal and Plant Health Inspection Service        7, III; 9, I
Appalachian Regional Commission                   5, IX

[[Page 552]]

Architectural and Transportation Barriers         36, XI
     Compliance Board
Arctic Research Commission                        45, XXIII
Armed Forces Retirement Home                      5, XI
Army Department                                   32, V
  Engineers, Corps of                             33, II; 36, III
  Federal Acquisition Regulation                  48, 51
Benefits Review Board                             20, VII
Bilingual Education and Minority Languages        34, V
     Affairs, Office of
Blind or Severely Disabled, Committee for         41, 51
     Purchase From People Who Are
Broadcasting Board of Governors                   22, V
  Federal Acquisition Regulation                  48, 19
Census Bureau                                     15, I
Centers for Medicare & Medicaid Services          42, IV
Central Intelligence Agency                       32, XIX
Chief Financial Officer, Office of                7, XXX
Child Support Enforcement, Office of              45, III
Children and Families, Administration for         45, II, III, IV, X
Civil Rights, Commission on                       45, VII
Civil Rights, Office for                          34, I
Coast Guard                                       33, I; 46, I; 49, IV
Coast Guard (Great Lakes Pilotage)                46, III
Commerce Department                               44, IV
  Census Bureau                                   15, I
  Economic Affairs, Under Secretary               37, V
  Economic Analysis, Bureau of                    15, VIII
  Economic Development Administration             13, III
  Emergency Management and Assistance             44, IV
  Federal Acquisition Regulation                  48, 13
  Fishery Conservation and Management             50, VI
  Foreign-Trade Zones Board                       15, IV
  Industry and Security, Bureau of                15, VII
  International Trade Administration              15, III; 19, III
  National Institute of Standards and Technology  15, II
  National Marine Fisheries Service               50, II, IV, VI
  National Oceanic and Atmospheric                15, IX; 50, II, III, IV, 
       Administration                             VI
  National Telecommunications and Information     15, XXIII; 47, III
       Administration
  National Weather Service                        15, IX
  Patent and Trademark Office, United States      37, I
  Productivity, Technology and Innovation,        37, IV
       Assistant Secretary for
  Secretary of Commerce, Office of                15, Subtitle A
  Technology, Under Secretary for                 37, V
  Technology Administration                       15, XI
  Technology Policy, Assistant Secretary for      37, IV
Commercial Space Transportation                   14, III
Commodity Credit Corporation                      7, XIV
Commodity Futures Trading Commission              5, XLI; 17, I
Community Planning and Development, Office of     24, V, VI
     Assistant Secretary for
Community Services, Office of                     45, X
Comptroller of the Currency                       12, I
Construction Industry Collective Bargaining       29, IX
     Commission
Consumer Product Safety Commission                5, LXXI; 16, II
Cooperative State Research, Education, and        7, XXXIV
     Extension Service
Copyright Office                                  37, II
Corporation for National and Community Service    45, XII, XXV
Cost Accounting Standards Board                   48, 99
Council on Environmental Quality                  40, V
Court Services and Offender Supervision Agency    28, VIII
     for the District of Columbia
Customs and Border Protection Bureau              19, I
Defense Contract Audit Agency                     32, I
Defense Department                                5, XXVI; 32, Subtitle A; 
                                                  40, VII

[[Page 553]]

  Advanced Research Projects Agency               32, I
  Air Force Department                            32, VII
  Army Department                                 32, V; 33, II; 36, III, 
                                                  48, 51
  Defense Intelligence Agency                     32, I
  Defense Logistics Agency                        32, I, XII; 48, 54
  Engineers, Corps of                             33, II; 36, III
  Federal Acquisition Regulation                  48, 2
  National Imagery and Mapping Agency             32, I
  Navy Department                                 32, VI; 48, 52
  Secretary of Defense, Office of                 32, I
Defense Contract Audit Agency                     32, I
Defense Intelligence Agency                       32, I
Defense Logistics Agency                          32, XII; 48, 54
Defense Nuclear Facilities Safety Board           10, XVII
Delaware River Basin Commission                   18, III
District of Columbia, Court Services and          28, VIII
     Offender Supervision Agency for the
Drug Enforcement Administration                   21, II
East-West Foreign Trade Board                     15, XIII
Economic Affairs, Under Secretary                 37, V
Economic Analysis, Bureau of                      15, VIII
Economic Development Administration               13, III
Economic Research Service                         7, XXXVII
Education, Department of                          5, LIII
  Bilingual Education and Minority Languages      34, V
       Affairs, Office of
  Civil Rights, Office for                        34, I
  Educational Research and Improvement, Office    34, VII
       of
  Elementary and Secondary Education, Office of   34, II
  Federal Acquisition Regulation                  48, 34
  Postsecondary Education, Office of              34, VI
  Secretary of Education, Office of               34, Subtitle A
  Special Education and Rehabilitative Services,  34, III
       Office of
  Vocational and Adult Education, Office of       34, IV
Educational Research and Improvement, Office of   34, VII
Elementary and Secondary Education, Office of     34, II
Emergency Oil and Gas Guaranteed Loan Board       13, V
Emergency Steel Guarantee Loan Board              13, IV
Employee Benefits Security Administration         29, XXV
Employees' Compensation Appeals Board             20, IV
Employees Loyalty Board                           5, V
Employment and Training Administration            20, V
Employment Standards Administration               20, VI
Endangered Species Committee                      50, IV
Energy, Department of                             5, XXIII; 10, II, III, X
  Federal Acquisition Regulation                  48, 9
  Federal Energy Regulatory Commission            5, XXIV; 18, I
  Property Management Regulations                 41, 109
Energy, Office of                                 7, XXIX
Engineers, Corps of                               33, II; 36, III
Engraving and Printing, Bureau of                 31, VI
Environmental Protection Agency                   5, LIV; 40, I, IV, VII
  Federal Acquisition Regulation                  48, 15
  Property Management Regulations                 41, 115
Environmental Quality, Office of                  7, XXXI
Equal Employment Opportunity Commission           5, LXII; 29, XIV
Equal Opportunity, Office of Assistant Secretary  24, I
     for
Executive Office of the President                 3, I
  Administration, Office of                       5, XV
  Environmental Quality, Council on               40, V
  Management and Budget, Office of                5, III, LXXVII; 14, VI; 
                                                  48, 99
  National Drug Control Policy, Office of         21, III
  National Security Council                       32, XXI; 47, 2
  Presidential Documents                          3
  Science and Technology Policy, Office of        32, XXIV; 47, II

[[Page 554]]

  Trade Representative, Office of the United      15, XX
       States
Export-Import Bank of the United States           5, LII; 12, IV
Family Assistance, Office of                      45, II
Farm Credit Administration                        5, XXXI; 12, VI
Farm Credit System Insurance Corporation          5, XXX; 12, XIV
Farm Service Agency                               7, VII, XVIII
Federal Acquisition Regulation                    48, 1
Federal Aviation Administration                   14, I
  Commercial Space Transportation                 14, III
Federal Claims Collection Standards               31, IX
Federal Communications Commission                 5, XXIX; 47, I
Federal Contract Compliance Programs, Office of   41, 60
Federal Crop Insurance Corporation                7, IV
Federal Deposit Insurance Corporation             5, XXII; 12, III
Federal Election Commission                       11, I
Federal Emergency Management Agency               44, I
  Federal Acquisition Regulation                  48, 44
Federal Employees Group Life Insurance Federal    48, 21
     Acquisition Regulation
Federal Employees Health Benefits Acquisition     48, 16
     Regulation
Federal Energy Regulatory Commission              5, XXIV; 18, I
Federal Financial Institutions Examination        12, XI
     Council
Federal Financing Bank                            12, VIII
Federal Highway Administration                    23, I, II
Federal Home Loan Mortgage Corporation            1, IV
Federal Housing Enterprise Oversight Office       12, XVII
Federal Housing Finance Board                     12, IX
Federal Labor Relations Authority, and General    5, XIV; 22, XIV
     Counsel of the Federal Labor Relations 
     Authority
Federal Law Enforcement Training Center           31, VII
Federal Management Regulation                     41, 102
Federal Maritime Commission                       46, IV
Federal Mediation and Conciliation Service        29, XII
Federal Mine Safety and Health Review Commission  5, LXXIV; 29, XXVII
Federal Motor Carrier Safety Administration       49, III
Federal Prison Industries, Inc.                   28, III
Federal Procurement Policy Office                 48, 99
Federal Property Management Regulations           41, 101
Federal Railroad Administration                   49, II
Federal Register, Administrative Committee of     1, I
Federal Register, Office of                       1, II
Federal Reserve System                            12, II
  Board of Governors                              5, LVIII
Federal Retirement Thrift Investment Board        5, VI, LXXVI
Federal Service Impasses Panel                    5, XIV
Federal Trade Commission                          5, XLVII; 16, I
Federal Transit Administration                    49, VI
Federal Travel Regulation System                  41, Subtitle F
Fine Arts, Commission on                          45, XXI
Fiscal Service                                    31, II
Fish and Wildlife Service, United States          50, I, IV
Fishery Conservation and Management               50, VI
Food and Drug Administration                      21, I
Food and Nutrition Service                        7, II
Food Safety and Inspection Service                9, III
Foreign Agricultural Service                      7, XV
Foreign Assets Control, Office of                 31, V
Foreign Claims Settlement Commission of the       45, V
     United States
Foreign Service Grievance Board                   22, IX
Foreign Service Impasse Disputes Panel            22, XIV
Foreign Service Labor Relations Board             22, XIV
Foreign-Trade Zones Board                         15, IV
Forest Service                                    36, II
General Accounting Office                         4, I
General Services Administration                   5, LVII; 41, 105
  Contract Appeals, Board of                      48, 61
  Federal Acquisition Regulation                  48, 5

[[Page 555]]

  Federal Management Regulation                   41, 102
  Federal Property Management Regulations         41, 101
  Federal Travel Regulation System                41, Subtitle F
  General                                         41, 300
  Payment From a Non-Federal Source for Travel    41, 304
       Expenses
  Payment of Expenses Connected With the Death    41, 303
       of Certain Employees
  Relocation Allowances                           41, 302
  Temporary Duty (TDY) Travel Allowances          41, 301
Geological Survey                                 30, IV
Government Ethics, Office of                      5, XVI
Government National Mortgage Association          24, III
Grain Inspection, Packers and Stockyards          7, VIII; 9, II
     Administration
Harry S. Truman Scholarship Foundation            45, XVIII
Health and Human Services, Department of          5, XLV; 45, Subtitle A
  Centers for Medicare & Medicaid Services        42, IV
  Child Support Enforcement, Office of            45, III
  Children and Families, Administration for       45, II, III, IV, X
  Community Services, Office of                   45, X
  Family Assistance, Office of                    45, II
  Federal Acquisition Regulation                  48, 3
  Food and Drug Administration                    21, I
  Human Development Services, Office of           45, XIII
  Indian Health Service                           25, V; 42, I
  Inspector General (Health Care), Office of      42, V
  Public Health Service                           42, I
  Refugee Resettlement, Office of                 45, IV
Homeland Security, Department of                  6, I
  Coast Guard                                     33, I; 46, I; 49, IV
  Coast Guard (Great Lakes Pilotage)              46, III
  Customs and Border Protection Bureau            19, I
  Federal Emergency Management Agency             44, I
  Immigration and Customs Enforcement Bureau      19, IV
  Immigration and Naturalization                  8, I
  Transportation Security Administration          49, XII
Housing and Urban Development, Department of      5, LXV; 24, Subtitle B
  Community Planning and Development, Office of   24, V, VI
       Assistant Secretary for
  Equal Opportunity, Office of Assistant          24, I
       Secretary for
  Federal Acquisition Regulation                  48, 24
  Federal Housing Enterprise Oversight, Office    12, XVII
       of
  Government National Mortgage Association        24, III
  Housing--Federal Housing Commissioner, Office   24, II, VIII, X, XX
       of Assistant Secretary for
  Housing, Office of, and Multifamily Housing     24, IV
       Assistance Restructuring, Office of
  Inspector General, Office of                    24, XII
  Public and Indian Housing, Office of Assistant  24, IX
       Secretary for
  Secretary, Office of                            24, Subtitle A, VII
Housing--Federal Housing Commissioner, Office of  24, II, VIII, X, XX
     Assistant Secretary for
Housing, Office of, and Multifamily Housing       24, IV
     Assistance Restructuring, Office of
Human Development Services, Office of             45, XIII
Immigration and Customs Enforcement Bureau        19, IV
Immigration and Naturalization                    8, I
Immigration Review, Executive Office for          8, V
Independent Counsel, Office of                    28, VII
Indian Affairs, Bureau of                         25, I, V
Indian Affairs, Office of the Assistant           25, VI
     Secretary
Indian Arts and Crafts Board                      25, II
Indian Health Service                             25, V; 42, I
Industry and Security, Bureau of                  15, VII
Information Resources Management, Office of       7, XXVII
Information Security Oversight Office, National   32, XX
     Archives and Records Administration
Inspector General

[[Page 556]]

  Agriculture Department                          7, XXVI
  Health and Human Services Department            42, V
  Housing and Urban Development Department        24, XII
Institute of Peace, United States                 22, XVII
Inter-American Foundation                         5, LXIII; 22, X
Interior Department
  American Indians, Office of the Special         25, VII
       Trustee
  Endangered Species Committee                    50, IV
  Federal Acquisition Regulation                  48, 14
  Federal Property Management Regulations System  41, 114
  Fish and Wildlife Service, United States        50, I, IV
  Geological Survey                               30, IV
  Indian Affairs, Bureau of                       25, I, V
  Indian Affairs, Office of the Assistant         25, VI
       Secretary
  Indian Arts and Crafts Board                    25, II
  Land Management, Bureau of                      43, II
  Minerals Management Service                     30, II
  National Indian Gaming Commission               25, III
  National Park Service                           36, I
  Reclamation, Bureau of                          43, I
  Secretary of the Interior, Office of            43, Subtitle A
  Surface Mining and Reclamation Appeals, Board   30, III
       of
  Surface Mining Reclamation and Enforcement,     30, VII
       Office of
Internal Revenue Service                          26, I
International Boundary and Water Commission,      22, XI
     United States and Mexico, United States 
     Section
International Development, United States Agency   22, II
     for
  Federal Acquisition Regulation                  48, 7
International Development Cooperation Agency,     22, XII
     United States
International Fishing and Related Activities      50, III
International Investment, Office of               31, VIII
International Joint Commission, United States     22, IV
     and Canada
International Organizations Employees Loyalty     5, V
     Board
International Trade Administration                15, III; 19, III
International Trade Commission, United States     19, II
Interstate Commerce Commission                    5, XL
James Madison Memorial Fellowship Foundation      45, XXIV
Japan-United States Friendship Commission         22, XVI
Joint Board for the Enrollment of Actuaries       20, VIII
Justice Department                                5, XXVIII; 28, I, XI; 40, 
                                                  IV
  Alcohol, Tobacco, Firearms, and Explosives,     27, II
       Bureau of
  Drug Enforcement Administration                 21, II
  Federal Acquisition Regulation                  48, 28
  Federal Claims Collection Standards             31, IX
  Federal Prison Industries, Inc.                 28, III
  Foreign Claims Settlement Commission of the     45, V
       United States
  Immigration Review, Executive Office for        8, V
  Offices of Independent Counsel                  28, VI
  Prisons, Bureau of                              28, V
  Property Management Regulations                 41, 128
Labor Department                                  5, XLII
  Benefits Review Board                           20, VII
  Employee Benefits Security Administration       29, XXV
  Employees' Compensation Appeals Board           20, IV
  Employment and Training Administration          20, V
  Employment Standards Administration             20, VI
  Federal Acquisition Regulation                  48, 29
  Federal Contract Compliance Programs, Office    41, 60
       of
  Federal Procurement Regulations System          41, 50
  Labor-Management Standards, Office of           29, II, IV
  Mine Safety and Health Administration           30, I
  Occupational Safety and Health Administration   29, XVII
  Public Contracts                                41, 50
  Secretary of Labor, Office of                   29, Subtitle A

[[Page 557]]

  Veterans' Employment and Training Service,      41, 61; 20, IX
       Office of the Assistant Secretary for
  Wage and Hour Division                          29, V
  Workers' Compensation Programs, Office of       20, I
Labor-Management Standards, Office of             29, II, IV
Land Management, Bureau of                        43, II
Legal Services Corporation                        45, XVI
Library of Congress                               36, VII
  Copyright Office                                37, II
Local Television Loan Guarantee Board             7, XX
Management and Budget, Office of                  5, III, LXXVII; 14, VI; 
                                                  48, 99
Marine Mammal Commission                          50, V
Maritime Administration                           46, II
Merit Systems Protection Board                    5, II
Micronesian Status Negotiations, Office for       32, XXVII
Mine Safety and Health Administration             30, I
Minerals Management Service                       30, II
Minority Business Development Agency              15, XIV
Miscellaneous Agencies                            1, IV
Monetary Offices                                  31, I
Morris K. Udall Scholarship and Excellence in     36, XVI
     National Environmental Policy Foundation
National Aeronautics and Space Administration     5, LIX; 14, V
  Federal Acquisition Regulation                  48, 18
National Agricultural Library                     7, XLI
National Agricultural Statistics Service          7, XXXVI
National and Community Service, Corporation for   45, XII, XXV
National Archives and Records Administration      5, LXVI; 36, XII
  Information Security Oversight Office           32, XX
National Bureau of Standards                      15, II
National Capital Planning Commission              1, IV
National Commission for Employment Policy         1, IV
National Commission on Libraries and Information  45, XVII
     Science
National Council on Disability                    34, XII
National Counterintelligence Center               32, XVIII
National Credit Union Administration              12, VII
National Crime Prevention and Privacy Compact     28, IX
     Council
National Drug Control Policy, Office of           21, III
National Foundation on the Arts and the           45, XI
     Humanities
National Highway Traffic Safety Administration    23, II, III; 49, V
National Imagery and Mapping Agency               32, I
National Indian Gaming Commission                 25, III
National Institute for Literacy                   34, XI
National Institute of Standards and Technology    15, II
National Labor Relations Board                    5, LXI; 29, I
National Marine Fisheries Service                 50, II, IV, VI
National Mediation Board                          29, X
National Oceanic and Atmospheric Administration   15, IX; 50, II, III, IV, 
                                                  VI
National Park Service                             36, I
National Railroad Adjustment Board                29, III
National Railroad Passenger Corporation (AMTRAK)  49, VII
National Science Foundation                       5, XLIII; 45, VI
  Federal Acquisition Regulation                  48, 25
National Security Council                         32, XXI
National Security Council and Office of Science   47, II
     and Technology Policy
National Telecommunications and Information       15, XXIII; 47, III
     Administration
National Transportation Safety Board              49, VIII
National Weather Service                          15, IX
Natural Resources Conservation Service            7, VI
Navajo and Hopi Indian Relocation, Office of      25, IV
Navy Department                                   32, VI
  Federal Acquisition Regulation                  48, 52
Neighborhood Reinvestment Corporation             24, XXV
Northeast Interstate Low-Level Radioactive Waste  10, XVIII
   Commission
[[Page 558]]

Nuclear Regulatory Commission                     5, XLVIII; 10, I
  Federal Acquisition Regulation                  48, 20
Occupational Safety and Health Administration     29, XVII
Occupational Safety and Health Review Commission  29, XX
Offices of Independent Counsel                    28, VI
Oklahoma City National Memorial Trust             36, XV
Operations Office                                 7, XXVIII
Overseas Private Investment Corporation           5, XXXIII; 22, VII
Panama Canal Commission                           48, 35
Panama Canal Regulations                          35, I
Patent and Trademark Office, United States        37, I
Payment From a Non-Federal Source for Travel      41, 304
     Expenses
Payment of Expenses Connected With the Death of   41, 303
     Certain Employees
Peace Corps                                       22, III
Pennsylvania Avenue Development Corporation       36, IX
Pension Benefit Guaranty Corporation              29, XL
Personnel Management, Office of                   5, I, XXXV; 45, VIII
  Federal Acquisition Regulation                  48, 17
  Federal Employees Group Life Insurance Federal  48, 21
       Acquisition Regulation
  Federal Employees Health Benefits Acquisition   48, 16
       Regulation
Postal Rate Commission                            5, XLVI; 39, III
Postal Service, United States                     5, LX; 39, I
Postsecondary Education, Office of                34, VI
President's Commission on White House             1, IV
     Fellowships
Presidential Documents                            3
Presidio Trust                                    36, X
Prisons, Bureau of                                28, V
Procurement and Property Management, Office of    7, XXXII
Productivity, Technology and Innovation,          37, IV
     Assistant Secretary
Public Contracts, Department of Labor             41, 50
Public and Indian Housing, Office of Assistant    24, IX
     Secretary for
Public Health Service                             42, I
Railroad Retirement Board                         20, II
Reclamation, Bureau of                            43, I
Refugee Resettlement, Office of                   45, IV
Regional Action Planning Commissions              13, V
Relocation Allowances                             41, 302
Research and Special Programs Administration      49, I
Rural Business-Cooperative Service                7, XVIII, XLII
Rural Development Administration                  7, XLII
Rural Housing Service                             7, XVIII, XXXV
Rural Telephone Bank                              7, XVI
Rural Utilities Service                           7, XVII, XVIII, XLII
Saint Lawrence Seaway Development Corporation     33, IV
Science and Technology Policy, Office of          32, XXIV
Science and Technology Policy, Office of, and     47, II
     National Security Council
Secret Service                                    31, IV
Securities and Exchange Commission                17, II
Selective Service System                          32, XVI
Small Business Administration                     13, I
Smithsonian Institution                           36, V
Social Security Administration                    20, III; 48, 23
Soldiers' and Airmen's Home, United States        5, XI
Special Counsel, Office of                        5, VIII
Special Education and Rehabilitative Services,    34, III
     Office of
State Department                                  22, I; 28, XI
  Federal Acquisition Regulation                  48, 6
Surface Mining and Reclamation Appeals, Board of  30, III
Surface Mining Reclamation and Enforcement,       30, VII
     Office of
Surface Transportation Board                      49, X
Susquehanna River Basin Commission                18, VIII
Technology Administration                         15, XI
Technology Policy, Assistant Secretary for        37, IV

[[Page 559]]

Technology, Under Secretary for                   37, V
Tennessee Valley Authority                        5, LXIX; 18, XIII
Thrift Supervision Office, Department of the      12, V
     Treasury
Trade Representative, United States, Office of    15, XX
Transportation, Department of                     5, L
  Commercial Space Transportation                 14, III
  Contract Appeals, Board of                      48, 63
  Emergency Management and Assistance             44, IV
  Federal Acquisition Regulation                  48, 12
  Federal Aviation Administration                 14, I
  Federal Highway Administration                  23, I, II
  Federal Motor Carrier Safety Administration     49, III
  Federal Railroad Administration                 49, II
  Federal Transit Administration                  49, VI
  Maritime Administration                         46, II
  National Highway Traffic Safety Administration  23, II, III; 49, V
  Research and Special Programs Administration    49, I
  Saint Lawrence Seaway Development Corporation   33, IV
  Secretary of Transportation, Office of          14, II; 49, Subtitle A
  Surface Transportation Board                    49, X
  Transportation Statistics Bureau                49, XI
Transportation, Office of                         7, XXXIII
Transportation Security Administration            49, XII
Transportation Statistics Bureau                  49, XI
Travel Allowances, Temporary Duty (TDY)           41, 301
Treasury Department                               5, XXI; 12, XV; 17, IV; 
                                                  31, IX
  Alcohol and Tobacco Tax and Trade Bureau        27, I
  Community Development Financial Institutions    12, XVIII
       Fund
  Comptroller of the Currency                     12, I
  Customs and Border Protection Bureau            19, I
  Engraving and Printing, Bureau of               31, VI
  Federal Acquisition Regulation                  48, 10
  Federal Law Enforcement Training Center         31, VII
  Fiscal Service                                  31, II
  Foreign Assets Control, Office of               31, V
  Internal Revenue Service                        26, I
  International Investment, Office of             31, VIII
  Monetary Offices                                31, I
  Secret Service                                  31, IV
  Secretary of the Treasury, Office of            31, Subtitle A
  Thrift Supervision, Office of                   12, V
Truman, Harry S. Scholarship Foundation           45, XVIII
United States and Canada, International Joint     22, IV
     Commission
United States and Mexico, International Boundary  22, XI
     and Water Commission, United States Section
Utah Reclamation Mitigation and Conservation      43, III
     Commission
Veterans Affairs Department                       38, I
  Federal Acquisition Regulation                  48, 8
Veterans' Employment and Training Service,        41, 61; 20, IX
     Office of the Assistant Secretary for
Vice President of the United States, Office of    32, XXVIII
Vocational and Adult Education, Office of         34, IV
Wage and Hour Division                            29, V
Water Resources Council                           18, VI
Workers' Compensation Programs, Office of         20, I
World Agricultural Outlook Board                  7, XXXVIII

[[Page 561]]



List of CFR Sections Affected



All changes in this volume of the Code of Federal Regulations which were 
made by documents published in the Federal Register since January 1, 
2001, are enumerated in the following list. Entries indicate the nature 
of the changes effected. Page numbers refer to Federal Register pages. 
The user should consult the entries for chapters and parts as well as 
sections for revisions.
For the period before January 1, 2001, see the ``List of CFR Sections 
Affected, 1949-1963, 1964-1972, 1973-1985, and 1986-2000'' published in 
11 separate volumes.

                                  2001

14 CFR
                                                                   66 FR
                                                                    Page
Chapter V
1207 Authority citation revised....................................59137
1207.102 Revised...................................................59137
1207.103 Added.....................................................59138
1214.900--1214.912 (Subpart 1214.9) Added..........................37411
1260.10 (c)(1) and (4) revised.....................................54121
1260.11 (b) amended................................................54121
1260.22 Introductory text amended..................................54121
1260.26 Amended....................................................54121
1260.1--1260.77 (Subpart A) Appendix amended.......................54121
1260.134 (a) amended...............................................54125
1260.152 (b) removed; (c) redesignated as new (b)..................54125
Chapter VI
Chapter VI Established.............................................52272

                                  2002

14 CFR
                                                                   67 FR
                                                                    Page
Chapter V
1204.500--1204.509 (Subpart 5) Authority citation revised; 
        1204.506 added.............................................47257
1204.506 Added to Subpart 5........................................47257
1240 Revised.......................................................31120
1260 Technical correction..........................................38855
1260.10 (d) added..................................................77667
1260.11 (h) introductory text revised; (h)(3) and (4) added........30544
1260.20 (a), (d), (e), (f) and (h) amended.........................45790
1260.39 Added......................................................45790
1260.70 (a) introductory text, (3), (4) and (b) revised............30544
1260.77 (b), (c), (d) introductory text, (1), (2) and (3) revised 
                                                                   30545
1274 Revised.......................................................45790
1274.215 Added.....................................................77668
Chapter VI
Chapter VI Heading revised.........................................17258
1300 (Subchapter A) Added..........................................17258
1300.3 Added.......................................................17258
1310 (Subchapter B) Added..........................................17259

                                  2003

14 CFR
                                                                   68 FR
                                                                    Page
Chapter V
1204.1600 (Subpart 16) Added.......................................60847
1214 Authority citation revised....................................19948
1214.1101 (a) amended; (c) removed; (d), and (e) redesignated as 
        (c), and (d)...............................................19948
1214.1102 (a), and (d) amended; (b), and (c) revised...............19948
1214.1103 (b) amended..............................................19948
1214.1104 (a) revised..............................................19948
1250.101 (a)(1), (2), (b)(2), (3), (5) and (6) amended.............51350
1250.102 (f) and (i) amended; (h) revised..........................51350
1250.103-2 (a) introductory text amended...........................51350
1250.103-3 (b) amended.............................................51350
1250.103-4 (a) amended; (b) revised................................51350

[[Page 562]]

1250.103-5 Amended; heading revised................................51350
1250.104 (a) and (e) amended; (c)(2) revised; (d)(1) designation 
        and (2) removed............................................51350
1250.105 (b) and (d) amended.......................................51350
1250.108 (e) amended...............................................51350
1250.109 (f) amended...............................................51350
1250.111 (a) amended...............................................51350
1251.101 Amended...................................................51351
1251.102 (k) added.................................................51351
1251.103 (a), (b)(1)(v), (3), (4), (5)(ii), (6)(i), (7) and (c) 
        amended....................................................51351
1251.104 (a) amended...............................................51351
1251.105 (a)(3)(i), (ii) and (iii) amended.........................51351
1251.107 (a) amended...............................................51351
1251.200 (a)(2), (4), (b)(8) and (d) amended.......................51351
1251.201 (a), (c) introductory text and (1) amended................51351
1251.300--1251.302 (Subpart 1251.3) Heading revised................51351
1251.301 (a) heading revised; (a), (b) and (d)(3) amended..........51351
1252 Heading revised...............................................51351
1252.100 Amended...................................................51352
1252.102 Heading revised...........................................51351
    (a) amended....................................................51352
1252.103 (n) added.................................................51351
1252.203 Amended...................................................51352
1252.300 Amended...................................................51352
1252.403 (a)(2) amended............................................51352
1252.405 (b) and (c)(2) amended....................................51352
1252.409 (b)(2) amended............................................51352
1260.10 (a)(2) revised.............................................35290
1260.11 (h) revised................................................28709
    (d) revised....................................................35290
1260.13 (a)(2) amended.............................................14535
1260.15 (c) introductory text and (1) amended; (d) removed.........28709
    (c) revised....................................................54655
1260.17 Added......................................................35290
1260.20 (a) revised; (d) amended...................................28709
1260.22 Amended....................................................67364
1260.26 Revised....................................................50469
1260.39 Amended....................................................28709
1260.56 Revised....................................................50469
1260.75 (b)(1) and (c)(2) revised..................................50469
1260.76 (d) and (e) revised; (f), (g) and (h) added................50469
1260.152 (b) revised; (c) added....................................50470
1265 Revised................................................66544, 66573
1265.440 Added.....................................................66574
1267 Added..................................................66557, 66575
1267.510 (c) amended...............................................66575
1267.605 (a)(2) amended............................................66575
1274.207 (b) redesignated as (d); new (b) and (c) added............14535


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