[Federal Register Volume 63, Number 82 (Wednesday, April 29, 1998)]
[Proposed Rules]
[Pages 23414-23415]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-11387]


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NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Parts 1836 and 1852


Partnering for Construction Contracts

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

ACTION: Notice of proposed rulemaking.

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SUMMARY: This is a proposed rule amending the NASA Federal Acquisition 
Regulation Supplement (NFS) to set forth a clause to be used to promote 
partnering under construction contracts when it has been determined 
that the benefits to be derived exceed the costs.

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

ADDRESSES: Submit comments to Mr. Joseph Le Cren, NASA Headquarters, 
Code HK, Washington, DC 20546.

FOR FURTHER INFORMATION CONTACT: Mr. Joseph Le Cren, Telephone: (202) 
358-0444.

SUPPLEMENTARY INFORMATION:

Background

    Several NASA field installations have used clauses promoting the 
use of partnering for construction contracts. Although those clauses 
have been similar, it was considered to be beneficial to have a 
standard Agency-wide clause. The proposed rule would provide a standard 
clause which would establish an Agency policy to endorse the use of 
partnering where it is determined to be cost effective. The use of 
partnering only would be used if voluntarily agreed to by the parties.
    The use of partnering clauses in construction contracts by NASA and 
other agencies has been demonstrated to reduce the average contract 
cost and schedule growth, as well as reduce the amount of contract 
claims and litigation. These results have been achieved because the use 
of partnering has promoted a relationship of open communication and 
close cooperation between the contractor and the Government, creating a 
mutually beneficial environment within which to achieve contract 
objectives and resolve issues.

Impact

    NASA certifies that this proposed regulation will not have a 
significant economic effect on a substantial number of small entities 
under the Regulatory Flexibility Act (5 U.S.C. 601 et. seq.). This rule 
does not impose any reporting or record keeping requirements subject to 
the Paperwork Reduction Act.

List of Subjects in 48 CFR Parts 1836 and 1852

    Government procurement.
Deidre Lee,
Associate Administrator for Procurement.

    Accordingly, 48 CFR Parts 1836 and 1852 are proposed to be amended 
as follows:
    1. The authority citation for 48 CFR Parts 1836 and 1852 continues 
to read as follows:

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

PART 1836--CONSTRUCTION AND ARCHITECT-ENGINEER CONTRACTS


1836.70  [Added]

    2. Subpart 1836.70 is added to read as follows:

Subpart 1836.70--Partnering


1836.7001  Definition.

    Partnering means a relationship of open communication and close 
cooperation that involves both Government and Contractor personnel 
working together for the purpose of establishing a mutually beneficial, 
proactive, cooperative environment within which to achieve contract 
objectives and resolve issues and implementing actions as required.


1836.7002  General.

    (a) The establishment of a partnering environment usually leads to 
higher quality products completed more quickly at lower overall costs 
and with fewer accidents and litigation.

[[Page 23415]]

    (b) The use of partnering is encouraged as it has been shown to 
reduce the average contract cost and schedule growth and to reduce 
contract claims and litigation.
    (c) Partnering is a voluntary contract relationship within the 
management process that is not to be used to unofficially alter terms 
of the contract.


1836.7003  Policy.

    (a) Partnering should be used on a contract when the contracting 
officer, in coordination with the project manager, determines that the 
benefits to be achieved from its use are expected to be greater than 
the costs.
    (b) In determining whether the benefits of partnering are greater 
than the costs, the following factors should be considered:
    (1) The estimated dollar value of the contract;
    (2) The complexity of the work to be performed;
    (3) The contemplated length of the contract; and
    (4) The estimated costs to be incurred in conducting the 
partnership development and team building initial and follow-up 
workshops


1836.7004  NASA solicitation provision and contract clause.

    The contracting officer may insert a clause substantially the same 
as stated at 1852.236-75, Partnering for Construction Contracts, in 
solicitations and contracts for construction, when it has been 
determined in accordance with 1836.7003 that the benefits to be derived 
from partnering exceed the costs.

PART 1852--SOLICITATION PROVISIONS AND CONTRACT CLAUSES


1852.236-75  [Added]

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


1852.236-75  Partnering for Construction Contracts.

    As prescribed in 1836.7004, insert the following clause:

Partnering for Construction Contracts April 1998

    (a) The terms ``partnering'' and ``partnership'' used herein 
shall mean a relationship of open communication and close 
cooperation that involves both Government and Contractor personnel 
working together for the purpose of establishing a mutually 
beneficial, proactive, cooperative environment within which to 
achieve contract objectives and resolve issues and implementing 
actions as required.
    (b) Partnering will be a voluntary commitment mutually agreed 
upon by at least NASA and the prime contractor, and preferably the 
subcontractors and the A&E design contractor, if applicable. 
Sustained commitment to the process is essential to assure success 
of the relationship.
    (c) NASA intends to facilitate contract management by 
encouraging the foundation of a cohesive partnership with the 
Contractor, its subcontractors, the A&E design contractor, and 
NASA's contract management staff. This partnership will be 
structured to draw on the strengths of each organization to identify 
and achieve mutual objectives. The objectives are intended to 
complete the contract requirements within budget, on schedule, and 
in accordance with the plans and specifications.
    (d) To implement the partnership, it is anticipated that within 
30 days of the Notice to Proceed the prime Contractor's key 
personnel, its subcontractors, the A&E design contractor, and NASA 
personnel will attend a partnership development and team building 
workshop. Follow-up team building workshops will be held 
periodically throughout the duration of the contract as agreed to by 
the Government and the Contractor.
    (e) Any cost with effectuating the partnership will be agreed to 
in advance by both parties and will be shared with no change in the 
contract price. The contractor's share of the costs are not 
recoverable under any other Government award.

(End of clause)

[FR Doc. 98-11387 Filed 4-28-98; 8:45 am]
BILLING CODE 7510-01-P