[Federal Register Volume 63, Number 159 (Tuesday, August 18, 1998)]
[Rules and Regulations]
[Pages 44170-44171]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-22023]


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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: Final rule.

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

EFFECTIVE DATE: August 18, 1998.

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

SUPPLEMENTARY INFORMATION:

Background

    On April 29, 1998, a proposed rule to amend the NFS to establish a 
clause to promote the use of partnering under construction contracts 
was published in the Federal Register (63 FR 23414-23415) for comment. 
The clause is to be included in construction contracts when a 
determination is made that the benefits to be derived exceed the costs. 
Comments were submitted by only one commenter. The commenter believes 
the proposed rule is not strong enough since it neither makes 
partnering mandatory for construction contracts, nor does it make 
mandatory participation by all subcontractors and the architect and 
design contractor under a construction contract. The comments were 
reviewed and considered; however, no changes were made to the proposed 
rule.

Impact

    NASA certifies that this 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.) because it 
establishes a voluntary communication program applicable only to 
construction contracts. 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.
Tom Luedtke,
Deputy Associate Administrator for Procurement.

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

    Authority: 42 U.S.C. 2473(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.
1836.7002  General.
1836.7003  Policy.
1836.7004  NASA solicitation provision and contract clause.


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

[[Page 44171]]

quickly at lower overall costs and with fewer accidents and litigation.
    (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--August 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. 98-22023 Filed 8-17-98; 8:45 am]
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