[Federal Register Volume 69, Number 42 (Wednesday, March 3, 2004)]
[Rules and Regulations]
[Pages 9963-9964]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-4760]


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NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Part 1817

RIN 2700-AC94


Performance Period Limitations

AGENCY: National Aeronautics and Space Administration.

ACTION: Final rule.

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SUMMARY: This final rule amends the NASA FAR Supplement (NFS) by 
clarifying that the five-year limitation on contracts applies to all 
procurement award instruments including agreements, orders under a 
Federal Supply Schedule, or other indefinite delivery/indefinite 
quantity contracts awarded by other agencies. The current NFS language 
has been interpreted to exclude certain types of award instruments, 
such as basic ordering agreements or blanket purchase agreements, from 
the five-year limitation. This change will ensure consistent 
application of the five-year performance period limitation and the 
waiver process for all award instruments.

EFFECTIVE DATE: March 3, 2004.

FOR FURTHER INFORMATION CONTACT: Eugene Johnson, NASA, Office of 
Procurement, Program Operations Division (Code HS), Washington, DC 
20546; (202) 358-4703; e-mail: [email protected].

SUPPLEMENTARY INFORMATION:

A. Background

    The NFS at 1817.204(e)(i) currently states that the five-year 
limitation (basic plus option periods) applies to all NASA contracts 
regardless of type. This has been interpreted to mean that the 
limitation does not apply to agreements such as basic ordering 
agreements and blanket purchase agreements. This interpretation is not 
consistent with the intent of the limitation and does not support 
NASA's efforts to maximize opportunities for competition. This final 
rule clarifies that the limitation is applicable to all award 
instruments. This change to the NFS is being issued as a final rule 
since it does not have a significant effect beyond the internal 
operating procedures of NASA. Comments may be submitted to the above 
address.

B. Regulatory Flexibility Act

    This final rule does not constitute a significant revision within 
the meaning of FAR 1.501 and Public Law 98-577, and publication for 
public comment is not required. However, NASA will consider comments 
from small entities concerning the affected NFS Part 1817 in accordance 
with 5 U.S.C. 610.

C. Paperwork Reduction Act

    The Paperwork Reduction Act does not apply because the changes do 
not impose recordkeeping or information collection requirements which 
require the approval of the Office of Management and Budget under 44 
U.S.C. 3501, et seq.

List of Subjects in 48 CFR Part 1817

    Government procurement.

Tom Luedtke,
Assistant Administrator for Procurement.

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Accordingly, 48 CFR Part 1817 is amended as follows:
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1. The authority citation for 48 CFR Part 1817 continues to read as 
follows:

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

[[Page 9964]]

PART 1817--SPECIAL CONTRACTING METHODS

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2. Revise section 1817.204 to read as follows:


1817.204  Contracts.

    (e)(i) The 5-year limitation (basic plus option periods) applies to 
all NASA contracts regardless of type and other procurement award 
instruments. This includes agreements (e.g. basic ordering agreements, 
blanket purchase agreements), interagency acquisitions, and orders 
placed under agreements or awarded under a Federal Supply Schedule or 
other indefinite delivery/indefinite quantity contracts awarded by 
other agencies.
    (ii) When the performance period exceeds 5 years (exclusive of 
options), the program/project office and the contracting officer shall 
review the requirement at the mid-point of the performance period to 
ensure that the products or services continue to fulfill NASA's mission 
needs and that the procurement award instrument continues to provide 
the best means of satisfying the requirement.
    (iii) Requests for deviations from the 5-year limitation policy 
shall be sent to the Assistant Administrator for Procurement (Code HS) 
and shall include justification for exceeding five years. The 
justification shall discuss planned future assessment of continued 
performance either prior to exercise of options or at the mid-term of a 
basic contract with no options. Evidence shall also be included showing 
that the extended years can be reasonably priced.

[FR Doc. 04-4760 Filed 3-2-04; 8:45 am]
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