Federal Register / Vol. 65, No. 114 / Tuesday, June 13, 2000 / Rules and Regulations 37057

facilitate the entry of new competitors to

the provision of these services, many of

whom will be small businesses seeking

to acquire a smaller amount of spectrum

at a reduced cost. Additionally,

allowing disaggregation of spectrum in

any amount will also promote

participation by small businesses who

may seek to acquire a smaller amount of

cellular spectrum tailored to meet the

needs of their proposed service.

E. Significant Alternatives Considered

and Rejected

15. We considered and rejected

several alternative proposals concerning

partitioning and disaggregation:

• We considered and rejected the

option of continuing to disallow

disaggregation of cellular spectrum. We

concluded that permitting

disaggregation would promote

competition and further regulatory

symmetry, and that there were no

technical or other constraints that

would make cellular disaggregation

either impractical or administratively

burdensome.

• We declined to establish any

minimum amount of spectrum that can

be disaggregated. We concluded that

allowing flexibility in disaggregation

would promote more efficient use of

spectrum and permit deployment of a

wider array of services.

• We declined to allow additional

flexibility in our cellular partitioning

rules. We concluded that our existing

rules are sufficiently flexible so as not

to place cellular licensees at a

competitive disadvantage compared to

other CMRS, and that additional

flexibility would be inconsistent with

our cellular unserved area rules.

• We declined to apply a new license

term to partitioned license areas or

disaggregated spectrum. We found that

allowing parties to ‘‘re-start’’ their

license term would effectively allow a

licensee to extend its license term and

could lead to circumvention of our

license term rules.

F. Report to Congress

16. We shall include a copy of this

Final Regulatory Flexibility Analysis,

along with this Second Report and

Order, in a report to be sent to Congress

pursuant to the Small Business

Regulatory Enforcement Fairness Act of

1996, 5 U.S.C. 801(a)(1)(A). A copy of

this Final Regulatory Flexibility

Analysis will also be published in the

Federal Register.

G. Ordering Clauses

17. Accordingly, pursuant to the

authority of sections 4(i), 257, 303(g),

303(r), and 332(a) of the

Communications Act of 1934, as

amended, 47 U.S.C. 154(i), 257, 303(g),

303(r), and 332(a), part 22 of the

Commission’s Rules, 47 CFR 22.1, et

seq., Is Amended as set forth in the rule

changes.

18. The rules adopted herein will

become effective July 13, 2000. This

action is taken pursuant to sections 4(i),

303(r), and 309(j) of the

Communications Act of 1934, as

amended, 47 U.S.C. 154(i), 303(r),

309(j).

List of Subjects in 47 CFR Part 22

Radio.

Federal Communications Commission.

Magalie Roman Salas,

Secretary.

Rule Changes

For the reasons set forth in the

preamble, the Federal Communications

Commission amends 47 CFR part 22 as

follows:

PART 22—PUBLIC MOBILE SERVICES

1. The authority citation for part 22

continues to read:

Authority: 47 U.S.C. 154, 222, 303, 309 and

332.

2. Add § 22.948 to read as follows:

§ 22.948 Partitioning and Disaggregation.

(a) Eligibility. (1) Generally. Parties

seeking approval for partitioning and

disaggregation shall request an

authorization for partial assignment of a

license pursuant to § 1.948 of this

chapter. Cellular licensees may partition

or disaggregate their spectrum to other

qualified entities.

(2) Partitioning. During the five year

build-out period, as defined in § 22.947,

cellular licensees may partition any

portion of their cellular market to other

qualified entities. After the five year

build-out period, cellular licensees and

unserved area licensees may partition

any portion of their Cellular Geographic

Service Area (CGSA), as defined by

§ 22.911, to other qualified entities but

may not partition unserved portions of

their cellular market.

(3) Disaggregation. After the five year

build-out period, as defined in § 22.947,

parties obtaining disaggregated

spectrum may only use such spectrum

in that portion of the cellular market

encompassed by the original licensee’s

CGSA and may not use such spectrum

to provide service to unserved portions

of the cellular market.

(b) Disaggregation. Cellular licensees

and unserved area licensees may

disaggregate spectrum in any amount.

(c) Combined partitioning and

disaggregation. The Commission will

consider requests for partial assignment

of cellular licenses that propose

combinations of partitioning and

disaggregation.

(d) License Term. The license term for

the partitioned license area and for

disaggregated spectrum shall be the

remainder of the original cellular

licensee’s or the unserved area

licensee’s license term provided for in

§ 22.144(a).

[FR Doc. 00–14872 Filed 6–12–00; 8:45 am]

BILLING CODE 6712–01–P

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: Interim rule and request for

comments.

SUMMARY: This interim rule changes 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 interim 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. Also, this

interim rule provides that contractors

not be paid award fee for any evaluation

period in which there is a major breach

of safety or security.

DATES: Effective Date: This rule is

effective July 13, 2000.

Applicability Date: This rule applies

to solicitations issued on or after July

13, 2000.

Comment Date: Comments should be

submitted to NASA at the address below

on or before August 14, 2000.

ADDRESSES: Interested parties should

submit written comments to James H.

Dolvin, NASA Headquarters Office of

Procurement, Contract Management

Division (Code HK), Washington, DC

20546. Comments may also be

submitted by e-mail to

jdolvin1@mail.hq.nasa.gov.

FOR FURTHER INFORMATION CONTACT:

James H. Dolvin, (202) 358–1279.

SUPPLEMENTARY INFORMATION:

A. Background

It is critically important for NASA to

achieve mission success without

37058 Federal Register / Vol. 65, No. 114 / Tuesday, June 13, 2000 / Rules and Regulations

compromising safety. However, given

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,

controlled, communicated, and

documented. 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 by

providing training to NASA and

contractor personnel, consultation to

NASA projects and programs, and

updated policy and guidance through

revisions to several of NASA’s internal

processes and guidelines. This interim

rule implements that part of the

initiative pertaining directly to the

procurement process. Since NASA’s

activities often include contractor

efforts, NASA’s focus on safety and

mission success must be conveyed in

NASA contracts.

A proposed rule was published in the

Federal Register at 64 FR 38880–84 on

June 20, 1999. Comments were received

from the Council of Defense and Space

Industry Associations, the United Space

Alliance, and the Jet Propulsion

Laboratory. All comments were

considered in the development of the

interim rule. After reviewing the public

comments, revisions were made to

sections 1807.105, 1812.301, 1815.203–

72, 1815.304.70, 1815.305, 1816.405–

274, 1823.7001, 1852.223–73, and

1852.223–76. Proposed section

1852.223–75 was deleted. The most

important of these revisions were (1)

changes in requirements for written

acquisition plans, (2) elimination of the

requirement for a separate risk

management plan in proposals, (3)

changes in award fee evaluation factors,

and (4) revisions to requirements for the

Safety and Health Plan.

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 this rule simply focuses

attention on risk management, an

existing business practice, and does not

impose any significant new

requirements which might have an

economic impact.

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

collection 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.

D. Determination To Issue an Interim

Rule

In accordance with 41 U.S.C. 418(d),

NASA has determined that urgent and

compelling reasons exist to promulgate

this interim rule. The basis of this

determination is that many ongoing

NASA activities involve significant risk

factors, and that immediate

implementation of the procedures

described in this interim rule is

necessary for identification and

management of these risks. Also, the

substance of this material was

previously published for public

comment in the Federal Register (64 FR

38880–84) on June 29, 1999. Public

comments received in response to this

interim rule will be considered in the

formation of the final rule.

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 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. Add section 1807.104 to read as

follows:

1807.104 General procedures. (NASA

supplements paragraph (a)).

(a) The acquisition planning team

shall obtain input 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 8715.3, NASA Safety

Manual; NPG 7120.5, NASA Program

and Project Management Processes and

Requirements; NPG 2810.1, Security of

Information Technology, and NPG

1620.1, Security Procedures and

Guidelines, all available at

www.nodis.hq.nasa.gov).

3. In section 1807.105, add paragraph

(a)(7) 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). In addition to technical,

schedule, and cost risks, the discussion

shall include such considerations as:

safety and security (including

personnel, information technology, and

facilities/property); the need to involve

foreign sources (contractor and/or

governmental), and risks of

unauthorized technology transfer (see

NPG 2190, NASA Export Control

Program); and resource risk, including

the necessary level and expertise of

NASA personnel resources available to

manage the project/program. For each

area of risk identified, the discussion

shall include a quantification of the

relative magnitude (e.g., high, medium,

low) together with the specific actions

taken to structure the acquisition

approach to manage the risks

throughout the acquisition process. For

example, this discussion would identify

those areas that have safety risk, discuss

how safety is addressed in contract

requirements and evaluated in the

source selection, and how it will be

managed and incentivized during

contract performance. Decisions to

accept, mitigate, track, and/or research

risk factors shall be identified and

documented as part of acquisition

planning.

* * * * *

PART 1811—DESCRIBING AGENCY

NEEDS

4. Add section 1811.101 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, security, and

environmental protection.

PART 1812—ACQUISITION OF

COMMERCIAL ITEMS

5. In section 1812.301, redesignate

paragraph (f)(i)(F) as (G); redesignate

paragraphs (f)(i)(G) through (J) as (f)(i)(J)

through (M), add new paragraphs

(f)(i)(F), (H), and (I), and redesignate

paragraph (f)(i)(F) as (G) to read as

follows:

Federal Register / Vol. 65, No. 114 / Tuesday, June 13, 2000 / Rules and Regulations 37059

1812.301 Solicitation provisions and

contract clauses for the acquisition of

commercial items.

(f)(i) * * *

(F) 1852.223–70, Safety and Health.

* * * * *

(H) 1852.223–73, Safety and Health

Plan.

(I) 1852.223–75, Major Breach of

Safety and Security.

* * * * *

PART 1815—CONTRACTING BY

NEGOTIATION

6. In section 1815.201, amend

paragraph (c)(6)(A) by adding the

following sentence immediately before

the last sentence to read as follows:

1815.201 Exchanges with industry before

receipt of proposals.

(c)(6)(A) * * * 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. * * *

* * * * *

7. Add section 1815.203–72 to read as

follows:

1815.203–72 Risk Management.

In all RFPs for supplies or services for

which a technical proposal is required,

proposal instructions shall require

offerors to identify and discuss risk

factors and issues throughout the

proposal where they are relevant, and

describe their approach to managing

these risks.

8. In section 1815.304–70, paragraphs

(b)(4) and (d)(4) are added to read as

follows:

1815.304–70 NASA evaluation factors.

* * * * *

(b) * * *

(4) If the solicitation requires the

submission of a Safety and Health Plan

(see 1823.7001(c) and NPG 8715.3,

NASA Safety Manual, Appendix H),

safety and health must be a

consideration in the evaluation. For

acquisitions valued at $10 million or

more, or $25 million or more for

commercial items, then the Mission

Suitability factor, if used, shall include

a subfactor for safety and health.

Otherwise, use of that subfactor is

optional.

* * * * *

(d) * * *

(4) The contracting officer shall

evaluate the offeror’s past performance

in occupational health, security, 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.

9. In section 1815.305, revise

paragraph (a)(vi) to read as follows:

1815.305 Proposal evaluation.

(a) * * *

(vi) Any programmatic risk to mission

success, e.g., technical, schedule, cost,

safety, occupational health, security,

export control, or 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 the risk

occurring, the impact and severity of the

risk, the timeframe when the risk should

be addressed, and the alternatives

available to meet the requirements. Risk

assessments shall be considered in

determining Mission Suitability

strengths, weaknesses, deficiencies, and

numerical or adjectival ratings.

Identified risks and the potential for

cost impact shall be considered in the

cost or price evaluation.

* * * * *

10. In section 1815.406–170, delete

the ‘‘and’’ at the end of paragraph (c)(5);

remove the period at the end of

paragraph (c)(6) and add ‘‘; and’’ in its

place; and add paragraph (c)(7) to read

as follows:

1815.406–170 Content of the

prenegotiation position memorandum.

* * * * *

(c) * * *

(7) Any risk management issues, e.g.,

mission success, safety, occupational

health, information technology, export

control, security, and environmental

risks.

* * * * *

PART 1816—TYPES OF CONTRACTS

11. In section 1816.405–274,

paragraphs (c) through (h) are

redesignated as paragraphs (d) through

(i), and a new paragraph (c) is added to

read as follows:

1816.405–274 Award fee evaluation

factors.

* * * * *

(c)(1) The technical factor, if used,

must include consideration of risk

management (including mission

success, 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 are

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.

(i) 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.

(ii) 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.

(2) A major breach of safety consists

of an accident, incident, or exposure

resulting in a fatality or mission failure;

or in damage to equipment or property

equal to or greater than $1 million; or

in any ‘‘willful’’ or ‘‘repeat’’ violation

cited by the Occupational Health and

Safety Administration (OSHA) or by a

state agency operating under an OSHA

approved plan.

(3) Security is the condition of

safeguarding against espionage,

sabotage, crime (including computer

crime), or attack. 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; damage or loss greater than

$250,000 to the Government; or theft.

* * * * *

PART 1823—ENVIRONMENT,

CONSERVATION, OCCUPATIONAL

SAFETY, AND DRUG-FREE

WORKPLACE

12. Revise section 1823.7001 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—

37060 Federal Register / Vol. 65, No. 114 / Tuesday, June 13, 2000 / Rules and Regulations

(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.

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 clause at 1852.223–75, 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

13. In section 1842.503, revise

paragraph (1)(iv) to read as follows:

1842.503 Postaward conferences.

(1) * * *

(iv) Complex contract management

issues are expected, particularly risk

management areas identified during

program and acquisition planning, e.g.,

significant or unusual mission success,

technical, cost, schedule, safety,

security, occupational health,

environmental protection, and export

control risks.

* * * * *

PART 1846—QUALITY ASSURANCE

14. Add section 1846.000 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.

15. Add section 1846.401 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

16. The clause in section 1852.223–70

is revised to read as follows:

1852.223–70 Safety and Health.

* * * * *

Safety and Health (July 2000)

(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 clause 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, or Close Call (a situation or occurrence

with no injury, no damage, or only minor

damage (less than $1,000) but possesses the

potential to cause any category of mishap, or

any injury, damage, or negative mission

impact) that may be of immediate interest to

NASA, 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. In addition, 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.

(d) The Contractor shall investigate all

work-related incidents, accidents, and Close

Calls, to the extent necessary to determine

their causes and furnish the Contracting

Officer a report, in such form as 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, after consultation with

installation safety and health representatives,

that this is not required);

Federal Register / Vol. 65, No. 114 / Tuesday, June 13, 2000 / Rules and Regulations 37061

(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)

17. In section 1852.223–73, remove

Alternate I and revise the clause to read

as follows:

1852.223–73 Safety and health plan.

* * * * *

Safety and Health Plan (July 2000)

The offeror shall submit a detailed safety

and occupational health plan as part of its

proposal (see NPG 8715.3, NASA Safety

Manual, Appendix H). 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.

(End of provision)

18. Add section 1852.223–75 to read

as follows:

1852.223–75 Major breach of safety or

security.

As prescribed in 1823.7001(d), insert

the following clause:

Major Breach of Safety or Security (July

2000)

(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 must be related directly to

the work on the contract. A major breach of

safety is an act or omission of the contractor

that consists of an accident, incident, or

exposure resulting in a fatality; or in damage

to equipment or property equal to or greater

than $1 million; or in any ‘‘willful’’ or

‘‘repeat’’ violation cited by the Occupational

Health and Safety Administration (OSHA) or

by a state agency operating under an OSHA

approved plan.

(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 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; damage

or loss greater than $250,000 to the

Government; or theft.

(c) In the event of a major breach of safety

or security, the Contractor shall report the

breach to the Contracting Officer. If directed

by the Contracting Officer, the Contractor

shall conduct its own investigation and

report the results to the Government. The

Contractor shall cooperate with the

Government investigation, if conducted.

(End of clause)

[FR Doc. 00–14752 Filed 6–12–00; 8:45 am]

BILLING CODE 7501–01–P

NATIONAL AERONAUTICS AND

SPACE ADMINISTRATION

48 CFR Parts 1811 and 1852

Packaging, Handling, and

Transportation

AGENCY: National Aeronautics and

Space Administration (NASA).

ACTION: Final rule.

SUMMARY: This is a final rule amending

the NASA FAR Supplement (NFS) to

add guidance for packaging, handling,

and transportation of certain kinds of

aeronautical and space equipment. A

NASA policy directive containing these

policies already exists, and the new NFS

material adds a contract clause which

directs the contractor to perform

packaging and handling as provided in

the policy directive.

EFFECTIVE DATE: June 13, 2000.

FOR FURTHER INFORMATION CONTACT:

James H. Dolvin, NASA Headquarters,

Office of Procurement, Contract

Management Division (Code HK), (202)

358–1279, email:

jdolvin1@mail.hq.nasa.gov.

SUPPLEMENTARY INFORMATION:

A. Background

Some NASA programs require the

development of aeronautical and space

equipment which, when transported

from one place to another, require the

use of special kinds of packaging,

handling methods, and transportation

procedures. At present, there is a NASA

policy directive which has instructions

for these procedures, but there is no

contract clause in the NFS to require the

contractor to perform packaging and

handling as provided in the directive.

This final rule adds such a clause to the

NFS.

B. Regulatory Flexibility Act

NASA certifies that this final rule will

not have a significant economic impact

on a substantial number of small

business entities within the meaning of

the Regulatory Flexibility Act (5 U.S.C.

601, et seq.), because it only applies in

those instances when a small business

entity is providing either Class I , II, or

III items.

C. Paperwork Reduction Act

The Paperwork Reduction Act does

not apply because the changes to the

NFS do not impose any recordkeeping

or information collection requirements,

or collection of information from

offerors, contractors, or members of the

public that require the approval of the

Office of Management and Budget under

44 U.S.C. 3501, et seq.

List of Subjects in 48 CFR Parts 1811

and 1852

Government Procurement.

Tom Luedtke,

Associate Administrator for Procurement.

Acccordingly, 48 CFR Parts 1811 and

1852 is amended as follows:

1. The authority citation for 48 CFR

Parts 1811 and 1852 continues to read

as follows:

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

PART 1811—DESCRIBING AGENCY

NEEDS

2. Amend paragraph (b) of section

1811.002 by removing the word ‘‘shall’’

and adding ‘‘must’’ in its place.