[Federal Register Volume 59, Number 54 (Monday, March 21, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-6464]


[[Page Unknown]]

[Federal Register: March 21, 1994]


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NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Part 1845

 

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

AGENCY: Office of Procurement, Procurement Policy Division, National 
Aeronautics and Space Administration (NASA).

ACTION: Interim rule with request for comments.

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SUMMARY: NASA has revised the NASA FAR Supplement (NFS), Part 1845, to 
authorize providing facilities (off-the-shelf, general purpose 
equipment) to contractors under certain limited conditions.

DATES: This interim rule is effective March 21, 1944. Comments are due 
no later than May 20, 1994.

ADDRESSES: Comments should be addressed to Ms. Carol E. Bennett, NASA 
Headquarters, Office of Procurement, Procurement Policy Division (Code 
HP), Washington, DC 20546.

FOR FURTHER INFORMATION CONTACT:
Mr. Larry G. Pendleton, telephone (202) 358-0487.

SUPPLEMENTARY INFORMATION:

Background

    FAR 45.302-1 states Government policy that contractors are required 
to supply all facilities necessary for the performance of Government 
contracts, unless the contracting situation falls under one of the five 
enumerated exceptions to that policy. In a review of NASA property 
practices, the General Accounting Office (GAO) has stated their opinion 
that NASA has not enforced this policy uniformly and that contractor-
held facilities owned by NASA have increased substantially. NASA-owned, 
contractor-held facilities amounted to over $1.9 billion in FY 1993.
    NASA is committed to reversing the practice of providing facilities 
to its contractors. However, since NASA now owns large quantities of 
facilities, a strategy is required to gradually reduce the amount of 
those facilities made available to contractors. This approach will 
maximize NASA's return on investment in facilities and avoid a 
significant short-term impact on NASA contractors. Therefore, where 
NASA-owned facilities exist to support a function being performed under 
contract, it may be in NASA's interest to continue to furnish these 
existing facilities to contractors until the items require replacement. 
At that time, policy compliance requires that contractors provide 
replacement items at their expense if the need for the facilities still 
exist.

Availability of NASA FAR Supplement

    The NASA FAR Supplement, of which this regulation will become a 
part, is codified in 48 CFR, chapter 18, and is available in its 
entirety on a subscription basis from the Superintendent of Documents, 
Government Printing Office, Washington, DC 20402. Cite GPO Subscription 
Stock Number 933-003-00000-1. It is not distributed to the public, 
whether in whole or in part, directly by NASA.

Regulatory Flexibility Act

    NASA certifies that this interim rule will not have significant 
economic impact on a substantial number of small entities within the 
meaning of the Regulatory Flexibility Act (5 U.S.C. 601, et seq.).

Paperwork Reduction Act

    This interim rule does not impose any reporting or record keeping 
requirements subject to the Paperwork Reduction Act.

List of Subjects in 48 CFR Part 1845

    Government procurement.
Thomas S. Leudtke,
Deputy Associate Administrator for Procurement.

    Accordingly, 48 CFR part 1845 is amended as follows:
    1. The authority citation for 48 CFR part 1845 continues to read as 
follows:

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

PART 1845--GOVERNMENT PROPERTY


1845.302-1  [Amended]

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


1845.302-1  Policy.

* * * * *
    (c) In addition to the exceptions listed in FAR 45.302-1(a), 
existing NASA-owned facilities (whether contractor acquired or 
Government furnished) may be retained for the remainder of the contract 
period and furnished under any follow-on contract for the same effort 
if the contracting officer determines that to do so would be in the 
best interest of the Government, provided that: (1) The facilities are 
required to accomplish the purpose of the contract;
    (2) The resulting contract contains a provision requiring the 
contractor to replace any of the facilities that reach the end of their 
useful life during the contract period, or which are beyond economical 
repair, if the facilities are still needed for contract performance. 
Such replacements shall be made with contractor-owned facilities. The 
contract provision shall also expressly prohibit contractor 
acquisitions of facility items for the Government, unless specifically 
authorized by the contract or consent has been obtained in writing from 
the contracting officer pursuant to FAR 45.302-1(a);
    (3) Consideration has been given to any alternative uses by 
Government personnel within the agency, in consultation with the 
Industrial Property Officer; and
    (4) The contracting officer documents the file with a detailed 
explanation of the circumstances which make furnishing of the 
facilities in the best interest of the Government.

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