NASA Performance Period Limitations 48 CFR Part 1817

[Federal Register: March 3, 2004 (Volume 69, Number 42)]
[Rules and Regulations]
[Page 9963-9964]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr03mr04-17]

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Part 1817

RIN 2700-AC94

Performance Period Limitations

AGENCY: National Aeronautics and Space Administration.

ACTION: Final rule.

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: eugene.johnson-1@nasa.gov.

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.

Accordingly, 48 CFR Part 1817 is amended as follows:

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

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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