[Federal Register Volume 64, Number 138 (Tuesday, July 20, 1999)]
[Proposed Rules]
[Pages 38880-38884]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-18414]
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NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
48 CFR Parts 1807, 1811, 1812, 1815, 1816, 1823, 1842, 1846, and
1852
Risk Management
AGENCY: National Aeronautics and Space Administration (NASA).
ACTION: Proposed rule.
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SUMMARY: This proposed rule would change the NASA FAR Supplement (NFS)
to emphasize considerations of risk management, including safety,
security (including information technology security), health, export
control, and damage to the environment, within the acquisition process.
The proposed rule addresses risk management within the context of
acquisition planning, selecting sources, choosing contract type,
structuring award fee incentives, administering contracts, and
conducting contractor surveillance. Additionally, this proposed rule
would require offeror proposals to include a risk management plan
whenever the value of the resulting contract is expected to exceed
$5,000,000, or whenever the contracting officer determines that it
would be appropriate. Furthermore, this proposed rule would allow that
contractors not be paid award fee for any evaluation period in which
there is a major breach of safety or security.
DATES: Comments should be submitted on or before September 20, 1999.
ADDRESSES: Interested parties should submit written comments to Kenneth
A. Sateriale, NASA Headquarters Office of Procurement, Contract
Management Division (Code HK), Washington, DC 20546. Comments may also
be submitted by e-mail to [email protected]
FOR FURTHER INFORMATION CONTACT: Kenneth A. Sateriale, (202) 358-0491.
SUPPLEMENTARY INFORMATION:
A. Background
The NASA Administrator, in a January 11, 1999 message, called upon
NASA to become an agency of informed risk takers. Furthermore, he
emphasized that it is critically important for NASA to achieve mission
success without compromising safety. On February 26, 1999, the
Administrator emphasized the need for NASA contractors, both on-site
and others, to be supportive of, and accountable for safety. Safety, in
this context, is freedom from those conditions that can cause death,
injury, occupational illness, damage to or loss of equipment or
property (including intellectual property), or damage to the
environment. However, given the fact that many of NASA's activities
involve advanced research, aeronautics, and space flight, NASA cannot
completely avoid risk. Therefore, risk must be managed, i.e.,
comprehensively identified, analyzed, planned, tracked, and controlled.
While risk management is not a new acquisition concept, NASA has
initiated a risk-based acquisition management initiative to re-focus on
risk as a core acquisition concern. That initiative will be implemented
through training as well as through revisions to several of NASA's
internal processes and guidelines. This proposed rule only implements
that part of the initiative pertaining directly to the procurement
process. Since NASA's activities often include contractor efforts,
NASA's focus
[[Page 38881]]
on safety and mission success must be conveyed in NASA contracts. (Risk
issues will also be addressed in a separate NFS revision to the NASA
structured approach for developing a fee/profit negotiation objective.)
Sections 1816.405-274(c) and 1852.223-76(a)(1) in this proposed
rule reference definitions in NASA Procedures and Guidelines (NPG)
8621.1, NASA Procedures and Guidelines for Mishap Reporting,
Investigating, and Recordkeeping. NPG 8621.1 is currently in draft and
will soon be published. Until such time, it will not be easy for the
public to obtain access to the definitions. Therefore, draft
definitions are provided below:
Mishap--Any unplanned occurrence or event resulting from any NASA
operation or equipment anomaly, involving injury to or death of any
persons (including the general public, astronauts and pilots, and NASA
employees and contractors), damage to or loss of property or equipment,
or mission failure.
Type A Mishap--A mishap causing death and/or damage to equipment or
property equal to or greater than $1 million. Mishaps resulting in
damage to aircraft, space hardware, or ground support equipment that
meet these criteria are included, as are test failures in which the
damage was unexpected or unanticipated.
Type B Mishap--A mishap resulting in permanent disability to one or
more persons, hospitalization (within a 30-day period from the same
mishap) of three or more persons, and/or damage to equipment, or
property equal to or greater than $250,000, but less than $1 million.
Mishaps resulting in damage to aircraft, space hardware, or ground
support equipment that meet these criteria are included, as are test
failures in which the damage was unexpected or unanticipated.
Mission Failure--A mishap of whatever intrinsic severity that, in
the judgment of the Enterprise Associate Administrator/Institutional
Program Officer, in coordination with the Associate Administrator for
Safety and Mission Assurance, prevents the achievement of primary NASA
mission objectives as described in the Mission Operations Report or
equivalent document.
B. Regulatory Flexibility Act
NASA certifies that this regulation will not have a significant
economic impact on a substantial number of small business entities
under the Regulatory Flexibility Act (5 U.S.C. 601 et seq.) because few
small businesses are awarded contracts valued in excess of the
$5,000,000 threshold established in the proposed rule for submission of
a risk management plan and inclusion of the safety clause.
C. Paperwork Reduction Act
The Paperwork Reduction Act does not apply because the changes to
the NFS do not impose recordkeeping or information collection
requirements, or collections of information from offerors, contractors,
or members of the public which require the approval of the Office of
Management and Budget under 41 U.S.C. 3501, et seq.
List of Subjects in 48 CFR Parts 1807, 1811, 1812, 1815, 1816,
1823, 1842, 1846, and 1852
Government procurement.
Tom Luedtke,
Associate Administrator for Procurement.
Accordingly, 48 CFR Parts 1807, 1811, 1812, 1815, 1816, 1823, 1842,
1846, and 1852 are proposed to be amended as follows:
1. The authority citation for 48 CFR Parts 1807, 1811, 1812, 1815,
1816, 1823, 1842, 1846, and 1852 continues to read as follows:
Authority: 42 U.S.C. 2473(c)(1).
PART 1807--ACQUISITION PLANNING
2. Section 1807.104 is added to read as follows:
1807.104 General procedures. (NASA supplements paragraph (a))
(a) Safety is NASA's highest core value. The acquisition planning
team shall include representatives from the center offices responsible
for matters of safety and mission assurance, occupational health,
environmental protection, information technology, export control, and
security. Their presence on the team shall help to ensure that all NASA
acquisitions are structured in accordance with NASA safety,
occupational health, environmental, export control, and security
policy. As part of this process, the team shall recommend any
appropriate solicitation or contract requirements for implementation of
safety, occupational health, environmental, information technology,
export control, and security concerns. (See NPG 8705.X, Risk Management
Procedures and Guidelines.)
3. In section 1807.105, paragraph (a)(7) is added to read as
follows:
1807.105 Contents of written acquisition plans.
(a)* * *
(7) Discuss project/program risks (see NPG 7120.5, NASA Program and
Project Management Processes and Requirements, and NPG 8705.X, Risk
Management Procedures and Guidelines). These risks include such
considerations as: the security of personnel, information technology,
and property; the NASA Export Control Program and risks of unauthorized
technology transfer; damage to the environment; program test conduct
and schedules; performance incentives and contract management concerns;
and the necessary level of NASA personnel resources required to manage
the project/program, including whether current staffing limitations
require a special plan for surveillance. This discussion should also
identify those areas that have safety risk, and how safety will be
addressed in contract requirements and evaluated in the source
selection, and how safety will be managed and incentivized, where
appropriate. Appropriate planning, i.e., decisions to research, accept,
watch, or mitigate, shall be identified for each risk.
* * * * *
PART 1811--DESCRIBING AGENCY NEEDS
4. Section 1811.101(b) is added to read as follows:
1811.101 Order of precedence for requirements documents. (NASA
supplements paragraph (b))
(b) When establishing product descriptions in either a solicitation
or contract, contracting officers shall include safeguards, as
applicable, to ensure safety and security, and preclude environmental
damage.
PART 1812--ACQUISITION OF COMMERCIAL ITEMS
5. Section 1812.301, paragraph (f)(i) is revised to read as
follows:
1812.301 Solicitation provisions and contract clauses for the
acquisition of commercial items.
(f)(i) The following clauses are authorized for use in acquisitions
of commercial items when required by the clause prescription:
(A) 1852.214-71, Grouping for Aggregate Award.
(B) 1852.214-72, Full Quantities.
(C) 1852.215-84, Ombudsman.
(D) 1852.219-75, Small Business Subcontracting Reporting.
(E) 1852.219-76, NASA Small Disadvantaged Business Goal.
(F) 1852.223-71, Frequency Authorization.
(G) 1852.223-75, Risk Management Plan.
[[Page 38882]]
(H) 1852.228-72, Cross-Waiver of Liability for Space Shuttle
Services.
(I) 1852.228-76, Cross-Waiver of Liability for Space Station
Activities.
(J) 1852.228-78, Cross-Waiver of Liability for NASA Expendable
Launch Vehicles.
(K) 1852.232-70, NASA Progress Payment Rates.
(L) 1852.246-72, Material Inspection and Receiving Report.
PART 1815--CONTRACTING BY NEGOTIATION
6. In section 1815.201, paragraph (c)(6)(A) is revised to read as
follows:
1815.201 Exchanges with industry before receipt of proposals.
(c)(6)(A) Except for acquisitions described in 1815.300-70(b),
contracting officers shall issue draft requests for proposals (DRFPs)
for all competitive negotiated acquisitions expected to exceed
$1,000,000 (including all options or later phases of the same project).
DRFPs shall invite comments from potential offerors on all aspects of
the draft solicitation, including the requirements, schedules, proposal
instructions, and evaluation approaches. Potential offerors should be
specifically requested to identify unnecessary or inefficient
requirements, and whether the requirements of any Government-unique
standards may be satisfied by voluntary consensus standards or industry
standards. Comments should also be requested on any perceived safety,
occupational health, security (including information technology
security), environmental, export control, and/or other programmatic
risk issues associated with performance of the work. When considered
appropriate, the statement of work or the specifications may be issued
in advance of other solicitation sections.
* * * * *
7. In section 1815.304-70, paragraphs (b)(5) and (d)(4) are added
to read as follows:
1815.304-70 NASA evaluation factors.
* * * * *
(b) * * *
(5) If the solicitation requires either the submission of a Safety
and Health Plan (see 1823.7001(c)), or a Risk Management Plan (see
1823.7001(d)), then the Mission Suitability factor shall include a
subfactor for safety, occupational health, and mission success.
Otherwise use of that subfactor is optional. (For discussion of risk
management, see NPG 7120.5, NASA Program and Project Management
Processes and Requirements, and NPG 8705.X, Risk Management Procedures
and Guidelines.)
* * * * *
(d) * * *
(4) The contracting officer shall evaluate the offeror's past
performance in occupational health, security, environmental protection,
and safety and mission success (e.g., mishap rates and problems in
delivered hardware and software that resulted in mishaps or failures)
when these areas are germane to the requirement.
8. In section 1815.305, paragraph (a)(vi) is revised to read as
follows:
1815.305 Proposal evaluation.
(a) * * *
(vi) Any programmatic risk, e.g., technical, schedule, cost,
safety, occupational health, security, export control, environmental.
Risks may result from the offeror's technical approach, manufacturing
plan, selection of materials, processes, equipment, or as a result of
the cost, schedule, and performance impacts associated with its
approach. Risk evaluations must consider the probability of success,
the impact of failure, and the alternatives available to meet the
requirements. Risk assessments shall be considered in determining
Mission Suitability strengths, weaknesses, deficiencies, and numerical/
adjectival ratings. Identified risks and the potential for cost impact
shall be considered in the cost or price evaluation. The offeror's Risk
Management Plan, if required, shall be used to support this evaluation.
* * * * *
9. In section 1815.406-170, paragraphs (c)(5) and (c)(6) are
revised and paragraph (c)(7) is added to read as follows:
1815.406-170 Content of the prenegotiation position memorandum.
* * * * *
(c)* * *
(5) Contractor/Government investment in facilities and equipment
(and any modernization to be provided by the contractor/Government);
(6) Any deviations, special clauses, or unusual conditions
anticipated, for example, unusual financing, warranties, EPA clauses
and when approvals were obtained, if required; and
(7) Any risk management issues, e.g., safety, occupational health,
security.
* * * * *
PART 1816--TYPES OF CONTRACTS
10. In section 1816.405-274, paragraphs (c), (d), (e), (f), (g),
and (h) are redesignated as paragraphs (d), (e), (f), (g), (h), and
(i), respectively; and new paragraph (c) is added to read as follows:
1816.405-274 Award fee evaluation factors.
* * * * *
(c) The technical factor, if used, must include consideration of
risk management (including safety, security, health, export control,
and damage to the environment, as appropriate) unless waived at a level
above the contracting officer, with the concurrence of the project
manager. The rationale for any waiver shall be documented in the
contract file. When safety, export control, or security is considered
under the technical factor, the award fee plan shall allow the
following fee determinations, regardless of contractor performance in
other evaluation factors, when there is a major breach of safety or
security. A major breach of safety consists of either any Type A or
Type B mishap, or Mission Failure, as defined in NPG 8621.1, NASA
Procedures and Guidelines for Mishap Reporting, Investigating, and
Recordkeeping, or any violation cited by the Occupational Safety and
Health Administration that results in either a final order of the
Review Commission assessing a civil penalty, or a criminal conviction.
Security is the condition of safeguarding against espionage, sabotage,
crime (including computer crime), or attack. A major breach of security
results in damage or loss greater than $250,000 to the Government. 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; or theft.
(1) For evaluation of service contracts under 1816.405-273(a), an
overall fee determination of zero for any evaluation period in which
there is a major breach of safety or security; or
(2) For evaluation of end item contracts under 1816.405-273(b), an
overall fee determination of zero for any interim evaluation period in
which there is a major breach of safety or security. To ensure that the
final award fee evaluation at contract completion reflects any major
breach of safety or security in an interim period, the overall award
fee pool shall be reduced by the amount of the fee available for the
period in which the major breach occurred if a zero fee determination
was made because of a major breach of safety or security.
* * * * *
[[Page 38883]]
PART 1823--ENVIRONMENT, CONSERVATION, OCCUPATIONAL SAFETY, AND
DRUG-FREE WORKPLACE
11. 1823.7001 is revised to read as follows:
1823.7001 NASA solicitation provisions and contract clauses.
(a) Except as provided in paragraph (b) of this section, the clause
at 1852.223-70, Safety and Health, shall be included in all
solicitations and contracts for--
(1) Negotiated acquisitions of $1,000,000 or more;
(2) Construction, repair, or alteration in excess of the simplified
acquisition threshold;
(3) Acquisitions having, within their total requirement,
construction, repair, or alteration tasks in excess of the simplified
acquisition threshold; and
(4) Acquisitions regardless of dollar amount when--
(i) Any deliverable contract end item is of a hazardous nature; or
(ii) It can reasonably be expected that hazards will be generated
and controlled within the operational environment during the life of
the contract and the contracting officer determines that they warrant
inclusion of the clause.
(b) The clause prescribed in paragraph (a) of this section may be
excluded--
(1) From any contract subject to the Walsh-Healey Public Contracts
Act (see FAR subpart 22.6) or the Service Contract Act of 1965 (see FAR
subpart 22.10) in which the application of either act and its
implementing regulations constitute adequate safety and occupational
health protection; or
(2) When the contracting officer, with the concurrence of the
installation official(s) responsible for matters of safety and
occupational health, makes a written determination that the clause is
not necessary under the circumstances of the acquisition.
(c) The contracting officer shall insert the provision at 1852.223-
73, Safety and Health Plan, in solicitations containing the clause at
1852.223-70, when a Safety and Health Plan is to be submitted with the
offeror's proposal. This clause may be modified to identify specific
information that is to be included in the plan. After receiving the
concurrence of the center safety and occupational health official(s),
the contracting officer shall include the plan in any resulting
contract.
(d) The contracting officer shall insert the provision at 1852.223-
75, Risk Management Plan, in all solicitations for negotiated
acquisitions of $5,000,000 or more, unless waived at a level above the
contracting officer with the concurrence of the project/program office
and the center safety and occupational health official(s). For other
solicitations, use of the provision is optional. After receiving the
concurrence of the project/program office and the center safety and
occupational health official(s), the contracting officer shall include
the plan in any resulting contract.
(e) The contracting officer shall insert the clause at 1852.223-76,
Major Breach of Safety or Security, in all solicitations and contracts
with estimated values of $500,000 or more, unless waived at a level
above the contracting officer with the concurrence of the project
manager and the installation official(s) responsible for matters of
security, export control, safety and occupational health. For other
contracts, use of the clause is optional.
PART 1842--CONTRACT ADMINISTRATION AND AUDIT SERVICES
12. In section 1842.503, paragraph (1)(iv) is revised to read as
follows:
1842.503 Postaward conferences.
(1) * * *
(iv) Complex contract management issues are expected, e.g., safety,
security, occupational health, environmental protection, export
control, and/or risk management.
* * * * *
PART 1846--QUALITY ASSURANCE
13. Section 1846.000 is added to read as follows:
1846.000 Scope of part.
The Government has a duty to assure that appropriated funds are
spent wisely. That duty is fulfilled in part through surveillance.
Surveillance may be conducted through ``insight'' (i.e., monitoring of
selected metrics and/or milestones) or ``oversight'' (i.e., Government
review and concurrence with contractor decisions). The decision to use
insight or oversight is based on an assessment of the risk inherent in
the activity being surveilled. Surveillance must be conducted whether
or not the contract effort has been structured as performance-based.
14. Section 1846.401 is added to read as follows:
1846.401 General. (NASA supplements paragraph (a)).
(a) The quality assurance surveillance plan (QASP) which the
project office prepares in conjunction with the statement of work is
preliminary. It reflects the Government's surveillance approach
relative to the perceived programmatic risk, and is written at a
general rather than specific level because the risks will not be
completely identified at that time. After contract award, contracting
officers shall ensure that the QASP is revised to reflect the risks
associated with the successful proposal. This final QASP shall not be
included in the contract, but should be periodically reviewed to ensure
its currency.
PART 1852--SOLICITATION PROVISIONS AND CONTRACT CLAUSES
15. Section 1852.223-70 is revised to read as follows:
1852.223-70 Safety and Health.
As prescribed in 1823.7004(c), insert the following clause:
Safety and Health
(Date)
(a) The Contractor shall take all reasonable safety and
occupational health measures in performing this contract. The
Contractor shall comply with all Federal, State, and local laws
applicable to safety and occupational health and with the safety and
occupational health standards, specifications, reporting
requirements, and any other relevant requirements of this contract.
(b) The Contractor shall take, or cause to be taken, any other
safety and occupational health measures the Contracting Officer may
reasonably direct. To the extent that the Contractor may be entitled
to an equitable adjustment for those measures under the terms and
conditions of this contract, the equitable adjustment shall be
determined pursuant to the procedures of the changes clause of this
contract; provided, that no adjustment shall be made under this
Safety and Health clause for any change for which an equitable
adjustment is expressly provided under any other provision of the
contract.
(c) The Contractor shall immediately notify and promptly report
to the Contracting Officer or a designee any accident, incident, or
exposure resulting in fatality, lost-time occupational injury,
occupational disease, contamination of property beyond any stated
acceptable limits set forth in the contract Schedule, or property
loss of $25,000 or more arising out of work performed under this
contract. The Contractor is not required to include in any report an
expression of opinion as to the fault or negligence of any employee.
(d) Service contractors (excluding construction contracts) shall
provide quarterly reports specifying lost-time frequency rate,
number of lost-time injuries, exposure, and accident/incident dollar
losses as specified in the contract Schedule. The Contractor shall
investigate all work-related incidents or accidents to the extent
necessary to determine their causes and furnish the Contracting
Officer a report, in such form as
[[Page 38884]]
the Contracting Officer may require, of the investigative findings
and proposed or completed corrective actions.
(e)(1) The Contracting Officer may notify the Contractor in
writing of any noncompliance with this clause and specify corrective
actions to be taken. The Contractor shall promptly take and report
any necessary corrective action.
(2) If the Contractor fails or refuses to institute prompt
corrective action in accordance with subparagraph (e)(1) of this
clause, the Contracting Officer may invoke the stop-work order
clause in this contract or any other remedy available to the
Government in the event of such failure or refusal.
(f) The Contractor (or subcontractor or supplier) shall insert
the substance of this clause, including this paragraph (f) and any
applicable Schedule provisions, with appropriate changes of
designations of the parties, in subcontracts of every tier that--
(1) Amount to $1,000,000 or more (unless the Contracting Officer
makes a written determination that this is not required);
(2) Require construction, repair, or alteration in excess of
$25,000; or
(3) Regardless of dollar amount, involve the use of hazardous
materials or operations.
(g) Authorized Government representatives of the Contracting
Officer shall have access to and the right to examine the sites or
areas where work under this contract is being performed in order to
determine the adequacy of the Contractor's safety and occupational
health measures under this clause.
(h) The contractor shall continually update the safety and
health plan when necessary. In particular, the Contractor shall
furnish a list of all hazardous operations to be performed, and a
list of other major or key operations required or planned in the
performance of the contract, even though not deemed hazardous by the
Contractor. NASA and the Contractor shall jointly decide which
operations are to be considered hazardous, with NASA as the final
authority. Before hazardous operations commence, the Contractor
shall submit for NASA concurrence--
(1) Written hazardous operating procedures for all hazardous
operations; and/or
(2) Qualification Standards for personnel involved in hazardous
operations.
(End of clause)
16. In section 1852.223-73, Alternate I is removed and the basic
clause is revised to read as follows:
1852.223-73 Safety and health plan.
* * * * *
Safety and Health Plan
(Date)
NASA requires that the contractor furnish supplies and services
in a safe and healthful manner and develops, produces, and/or
delivers products to NASA that will be safe and successful for their
intended use. The offeror shall submit a detailed safety and
occupational health plan, as part of its proposal. The plan must
include a detailed discussion of the policies, procedures, and
techniques that will be used to ensure the safety and occupational
health of contractor employees and to ensure the safety of all
working conditions throughout the performance of the contract. The
plan must similarly address safety and occupational health for
subcontractor employees for any proposed subcontract whose value is
expected to exceed $500,000, including commercial services and
services provided in support of a commercial item. Also, when
applicable, the plan must address the policies, procedures, and
techniques that will be used to ensure the safety and occupational
health of NASA employees and the public. This plan, as approved by
the Contracting Officer, will be included in any resulting contract.
(For additional detail on content for the Safety and Health Plan,
see NPG 8715.1, NASA Safety Manual Procedures and Guidelines,
Appendix H.)
(End of provision)
17. Section 1852.223-75 is added to read as follows:
1852.223-75 Risk Management Plan.
As prescribed in 1823.7001(d), insert the following provision:
Risk Management Plan
(Date)
The offeror shall submit a detailed Risk Management Plan, as
part of the offeror's proposal. The plan must include a detailed
description of the offeror's plan to use risk management techniques
to manage programmatic risks (e.g., safety, technical, cost,
schedule, security, export control, and damage to the environment)
throughout the performance of the contract. The plan must conform to
NASA's guidance on risk as described in NASA Procedures and
Guidelines 8705.X, Risk Management Procedures and Guidelines. The
plan must similarly address risk management for subcontracted effort
whose value is expected to exceed $500,000. Costs solely
attributable to risk management must be clearly identifiable in the
offeror's proposal. This plan, as approved by the Contracting
Officer, will be included in any resulting contract.
(End of provision)
18. Section 1852.223-76 is added to read as follows:
1852.223-76 Safety.
As prescribed in 1823.7001(e), insert the following clause:
Major Breach of Safety or Security
(Date)
(a) 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. A major breach of
safety may constitute a breach of contract that entitles the
Government to exercise any of its rights and remedies applicable to
material parts of this contract, including termination for default.
A major breach of safety may occur on or off Government
installations, but must be related directly to the work on the
contract. A major breach of safety is an act or omission of the
contractor that results in either--
(1) Any Type A or Type B mishap, or Mission Failure as defined
in NPG 8621.1, NASA Procedures and Guidelines for Mishap Reporting,
Investigating, and Recordkeeping; or
(2) Any violation cited by the Occupational Safety and Health
Administration that results in a final order of the Review
Commission assessing a civil penalty, or a criminal conviction.
(b) Security is the condition of safeguarding against espionage,
sabotage, crime (including computer crime), or attack. A major
breach of security may constitute a breach of contract that entitles
the Government to exercise any of its rights and remedies applicable
to material parts of this contract, including termination for
default. A major breach of security may occur on or off Government
installations, but must be related directly to the work on the
contract. A major breach of security results in damage or loss
greater than $250,000 to the Government. 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; or theft.
(c) In the event of a major breach of safety or security, the
Contractor shall, if directed by the Contracting Officer, conduct
its own investigation and report the results to the Government, and
the Contractor shall cooperate with the Government investigation, if
conducted.
(End of clause)
[FR Doc. 99-18414 Filed 7-19-99; 8:45 am]
BILLING CODE 7510-01-P