16058 Federal Register / Vol. 60, No. 60 / Wednesday, March 29, 1995 / Rules and Regulations

make a decision on the claim. The Carrier

must simultaneously notify the covered

individual of the information requested if it

requests additional information from a

provider. The Carrier has 30 days after the

date the information is received to affirm the

denial in writing to the covered individual or

pay the bill or provide the service. The

Carrier must make its decision based on the

evidence it has if the covered individual or

provider does not respond within 60 days

after the date of the Carrier’s notice

requesting additional information. The

Carrier must then send written notice to the

covered individual of its decision on the

claim. The covered individual may request

OPM review as provided in paragraph (b)(3)

of this clause if the Carrier fails to act within

30 days after the covered individual’s request

for reconsideration or the Carrier’s receipt of

additional information.

(3) The covered individual may write to

OPM and request that OPM review the

Carrier’s decision if the Carrier either affirms

its denial of a claim or fails to respond to a

covered individual’s written request for

reconsideration within 30 days after the date

it receives the request or within 30 days after

the date it receives the additional

information requested. The covered

individual must submit the request for OPM

review within the time limit specified in

paragraph (e)(1) of this clause.

(4) The Carrier may extend the time limit

for a covered individual’s submission of

additional information to the Carrier when

the covered individual shows he or she was

not notified of the time limit or was

prevented by circumstances beyond his or

her control from submitting the additional

information.

(c) Information required to process requests

for reconsideration. (1) The covered

individual must put the request to the Carrier

to reconsider a claim in writing and give the

reasons, in terms of applicable brochure

provisions, that the denied claim should

have been approved.

(2) If the Carrier needs additional

information from the covered individual to

make a decision, it must:

(i) Specifically identify the information

needed;

(ii) State the reason the information is

required to make a decision on the claim;

(iii) Specify the time limit (60 days after

the date of the Carrier’s request) for

submitting the information; and

(iv) State the consequences of failure to

respond within the time limit specified, as

set out in paragraph (b)(2) of this clause.

(d) Carrier determinations. The Carrier

must provide written notice to the covered

individual of its determination. If the Carrier

affirms the initial denial, the notice must

inform the covered individual of:

(1) The specific and detailed reasons for

the denial;

(2) The covered individual’s right to

request a review by OPM; and

(3) The requirement that requests for OPM

review must be received within 90 days after

the date of the Carrier’s denial notice and

include a copy of the denial notice as well

as documents to support the covered

individual’s position.

(e) OPM review. (1) If the covered

individual seeks further review of the denied

claim, the covered individual must make a

request to OPM to review the Carrier’s

decision. Such a request to OPM must be

made:

(i) Within 90 days after the date of the

Carrier’s notice to the covered individual that

the denial was affirmed; or

(ii) If the Carrier fails to respond to the

covered individual as provided in paragraph

(b)(2) of this clause, within 120 days after the

date of the covered individual’s timely

request for reconsideration by the Carrier; or

(iii) Within 120 days after the date the

Carrier requests additional information from

the covered individual, or the date the

covered individual is notified that the Carrier

is requesting additional information from a

provider. OPM may extend the time limit for

a covered individual’s request for OPM

review when the covered individual shows

he or she was not notified of the time limit

or was prevented by circumstances beyond

his or her control from submitting the request

for OPM review within the time limit.

(2) In reviewing a claim denied by the

Carrier, OPM may

(i) Request that the covered individual

submit additional information;

(ii) Obtain an advisory opinion from an

independent physician;

(iii) Obtain any other information as may

in its judgment be required to make a

determination; or

(iv) Make its decision based solely on the

information the covered individual provided

with his or her request for review.

(3) When OPM requests information from

the Carrier, the Carrier must release the

information within 30 days after the date of

OPM’s written request unless a different time

limit is specified by OPM in its request.

(4) Within 90 days after receipt of the

request for review, OPM will either:

(i) Give a written notice of its decision to

the covered individual and the Carrier; or

(ii) Notify the individual of the status of

the review. If OPM does not receive

requested evidence within 15 days after

expiration of the applicable time limit in

paragraph (e)(3) of this clause, OPM may

make its decision based solely on

information available to it at that time and

give a written notice of its decision to the

covered individual and to the Carrier.

(f) Court review. (1) A suit to compel

enrollment under § 890.102 of Title 5, Code

of Federal Regulations, must be brought

against the employing office that made the

enrollment decision.

(2) A suit to review the legality of OPM’s

regulations under this part must be brought

against the Office of Personnel Management.

(3) Federal Employees Health Benefits

(FEHB) carriers resolve FEHB claims under

authority of Federal statute (chapter 89, title

5, United States Code). A covered individual

may seek judicial review of OPM’s final

action on the denial of a health benefits

claim. A legal action to review final action

by OPM involving such denial of health

benefits must be brought against OPM. The

recovery in such a suit will be limited to the

amount of benefits in dispute.

(4) An action under paragraph (f)(3) of this

clause to recover on a claim for health

benefits:

(i) May not be brought prior to exhaustion

of the administrative remedies provided in

paragraphs (a) through (e) of this clause;

(ii) May not be brought later than

December 31 of the third year after the year

in which the care or service was provided;

and

(iii) Will be limited to the record that was

before OPM when it rendered its decision

affirming the Carrier’s denial of benefits.

(End of Clause)

[FR Doc. 95–7792 Filed 3–28–95; 8:45 am]

BILLING CODE 6325–01–M

NATIONAL AERONAUTICS AND

SPACE ADMINISTRATION

48 CFR Parts 1801, 1804, 1806, 1808,

1813, 1815, 1816, 1832, 1836, 1840,

1841, 1842, 1845, 1851, 1852, and 1870

[NFSD 89–18]

RIN 2700–AB83

NASA FAR Supplement; Miscellaneous

Amendments

AGENCY: Office of Procurement,

Acquisition Liaison Division, National

Aeronautics and Space Administration

(NASA).

ACTION: Final rule.

SUMMARY: This document amends the

NASA Federal Acquisition Regulation

Supplement (NFS) to reflect a number of

miscellaneous changes dealing with

NASA internal and administrative

matters, such as the NASA FAR

Supplement rewrite, procurement

integrity, cost-reimbursement contracts,

architect-engineer services, acquisition

of utility services, and audit tracking

and resolution.

EFFECTIVE DATE: March 31, 1995.

FOR FURTHER INFORMATION CONTACT: Mr.

David K. Beck, (202) 358–0482; e-mail:

dbeck@proc.hq.nasa.gov.

SUPPLEMENTARY INFORMATION:

Background

A cross-reference is added to

1813.7104(a) due to FAC 90–24. The

FAC allows the head of contracting

activity to exclude contracting officers

(with micro-purchase authority only)

from the procurement integrity

definition of ‘‘procurement official’’ if

the HCA determines that it is unlikely

that the contracting officer’s

acquisitions will exceed $20,000 in any

12-month period.

Sections 1816.301, 1816.301–3 and

1816.403 are removed due to FAC 90–

24’s removal of FAR 16.301 and 16.403.
Federal Register / Vol. 60, No. 60 / Wednesday, March 29, 1995 / Rules and Regulations 16059

Various changes include: (i) Lowering

the selection official level for A–E

contracts from the head of the

installation to an executive level

manager in the requirements office; (ii)

eliminate 1836.600–70 on interorganization acquisition coverage

through NASA Headquarters Code HS;

and (iii) upgrade the ethics certificate

associated with selection of A–E

contracts.

Subpart 1803.3 is redesignated as Part

1841. NFS clauses on utility services are

removed where new FAR clauses

provide adequate coverage.

Changes are necessary for NASA’s

audit followup system to comply with

Office of Management and Budget

(OMB) Circular A–50, ‘‘Audit

Followup.’’ In addition, they streamline

the coverage on audit tracking and

resolution and relocate the coverage

within the NASA FAR Supplement.

Miscellaneous changes and

corrections are found in the following

sections: 1801.104–370; 1801.603–2

(reference to SF 171 deleted); Subpart

1804.8 (title change of subpart heading);

1804.805 (title change to section

heading); 1806.303–1; 1808.002–71 and

–76 (removed due to fAR coverage);

Subpart 1808.7 (title change to subpart

heading and ‘‘workshop’’ changed to

new FAR terminology ‘‘nonprofit

agency’’; 1815.613–71; 1819.708–70;

1825.403–70; 1832.402; 1842.202–70;

1845.106–70; 1845.405; 1845.407;

1845.608–6; 1845.610–2; 1845.7203;

1845.7205; 1845.7213; 1851.102;

1870.103, App. I. Chapter 7, Appendix

C; and 1870.303, App. I, Chapter 4.

Availability of NASA FAR Supplement

The NASA FAR Supplement, of

which this rule is a part, is available in

its entirety on a subscription basis from

the Superintendent of Documents,

Government Printing Office,

Washington, DC 20402, telephone

number (202) 783–3238. Cite GPO

Subscription Stock Number 933–003–

00000–1. It is not distributed to the

public, either in whole or in part,

directly by NASA.

Impact

NASA certifies that this regulation

will not have a significant economic

impact on a substantial number of small

entities under the Regulatory Flexibility

Act (5 U.S.C. 601 et seq.). This rule does

not impose any reporting or record

keeping requirements subject to the

Paperwork Reduction Act.

List of Subjects in 48 CFR Parts 1801,

1804, 1806, 1808, 1813, 1815, 1816,

1832, 1836, 1840, 1841, 1842, 1845,

1851, 1852, and 1870

Government procurement.

Thomas S. Luedtke,

Deputy Associate Administrator for

Procurement.

Accordingly, 48 CFR Chapter 18 is

amended as follows:

PART 1801—FEDERAL ACQUISITION

REGULATIONS SYSTEM

1. The authority citation for 48 CFR

Parts 1801, 1804, 1806, 1808, 1813,

1815, 1816, 1832, 1836, 1842, 1845,

1851, 1852, and 1870 continues to read

as follows:

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

1801.104–370 [Amended]

2. In section 1801.104–370, paragraph

(a), ‘‘Ms. Joan Brooks (202–358–2105)’’

is revised to read ‘‘Mrs. Cynthia

O’Bryant (202–358–1248)’’.

3. In section 1801.104–370,

paragraphs (e) and (f), ‘‘Code JBD–4’’ is

revised to read ‘‘Code JOB–19’’.

4. In section 1801.104–370, paragraph

(f), ‘‘Code HS, Gloria Shively (202–358–

2080)’’ is revised to read ‘‘Code HP,

Cynthia O’Bryant (202–358–1248)’’ and

‘‘Code JM–2’’ is revised to read ‘‘Code

JMS’’.

1801.603–2 [Amended]

5. In section 1801.603–2, paragraph

(d)(1) introductory text, the phrase ‘‘(or

SF 171)’’ is removed.

PART 1804—ADMINISTRATIVE

MATTERS

Subpart 1804.8 [Amended]

6. In subpart 1804.8, the title

‘‘Contract Files’’ is revised to read

‘‘Government Contract Files’’.

1804.805 [Amended]

7. In section 1804.805, the section

heading ‘‘Disposal of contract files.’’ is

revised to read ‘‘Storage, handling, and

disposal of contract files.’’

PART 1806—COMPETITION

REQUIREMENTS

1806.303–1 [Amended]

8. In section 1806.301–1, paragraph

(b), ‘‘Code IRD’’ is revised to read ‘‘Code

IR’’.

PART 1808—REQUIRED SOURCES OF

SUPPLIES AND SERVICES

1808.002–71 [Removed]

9. Section 1808.002–71 is removed.

1808.002–76 [Removed]

10. Section 1808.002–76 is removed.

Subpart 1808.3 [Removed]

11. Subpart 1808.3 is removed.

Subpart 1808.7 [Amended]

12. The title of subpart 1808.7

‘‘Acquisition From The Blind And

Other Severely Handicapped’’ is revised

to read ‘‘Acquisition From Nonprofit

Agencies Employing People Who Are

Blind Or Severely Disabled’’.

1808.705–1 [Amended]

13. In section 1808.705–1, paragraph

(b), the phrase ‘‘to obtain workshopproduced supplies’’ is revised to read

‘‘to obtain nonprofit agency-produced

supplies’’.

PART 1813—SMALL PURCHASE AND

OTHER SIMPLIFIED PURCHASE

PROCEDURES

1813.7104 [Amended]

14. In section 1813.7104, the

following sentence is added to the end

of paragraph (a) to read as follows:

‘‘See 48 CFR (FAR) 3.104–4(h)(5) for

procurement integrity requirements.’’

PART 1815—CONTRACTING BY

NEGOTIATION

1815.871 and 1815.872 [Removed]

15. Sections 1815.871 and 1815.872

are removed.

PART 1816—TYPES OF CONTRACTS

1816.301 and 1816.301–3 [Removed]

16. Sections 1816.301 and 1816.301–

3 are removed.

1816.403 [Removed]

17. Section 1816.403 is removed.

PART 1832—ADVANCE PAYMENTS

1832.402 [Removed]

18. In section 1832.402, paragraph

(a)(1) is amended by removing the

second sentence.

PART 1836—CONSTRUCTION AND

ARCHITECT-ENGINEER CONTRACTS

Subpart 1836.6 [Amended]

1836.600 and 1836.600–70 [Removed]

19. and 20. Sections 1836.600 and

1836.600–70 are removed.

1836.602–2 [Amended]

21. Sections 1836.602–2 is revised to

read as follows:

1836.602–2 Evaluation boards.

In compliance with 48 CFR (FAR)

36.602–2, the person designated as the
16060 Federal Register / Vol. 60, No. 60 / Wednesday, March 29, 1995 / Rules and Regulations

selection authority, unless Field

Installation Management Instructions

designate higher authority, shall

establish an architect-engineer selection

board to be composed of at least three

voting members. Membership shall at

least include: one currently registered

architect or professional engineer, who

shall serve as the board chairperson; an

appropriate official from the requiring

office; and, an appropriate technical

official familiar with any unique subject

matter (see 48 CFR (FAR) 36.102,

Definitions, ‘‘Architect-engineer

services’’) critical to the requirement.

Each board shall include an appropriate

procurement official (a contracting

officer, if feasible) as an ad hoc advisor

to the board and the selection authority.

Where appropriate, a procurement

official may serve as a voting member

on evaluation boards. Appointment of

non-Government employees as voting

members is not authorized.

22. Section 1836.602–4 is revised to

read as follows:

1836.602–4 Selection authority.

The first level manager above the

requirement office who is serving in

grade GS 16 or above under the General

Schedule or in a comparable or higher

position under another schedule, or

otherwise, is designated as the selection

authority for purposes of 48 CFR (FAR)

36.602.4.

23. Section 1836.602–5 is revised to

read as follows:

1836.602–5 Short selection processes for

contracts not to exceed the small purchase

limitation.

(a) Use of the procedures at 48 CFR

(FAR) 36.602–5 (a) or (b) is at the

discretion of the selection authority

specified in 1836.602–4.

(b) The selection authority specified

in 1836.602–4 is designated as the

selection authority for purposes of 48

CFR (FAR) 36.602–5(b)(2).

1836.602–70 [Amended]

24. In section 1836.602–70, paragraph

(b)(1), ‘‘the Comptroller’’ is revised to

read ‘‘the Chief Financial Officer (CFO)/

Comptroller’’.

25. In section 1836.602–71, paragraph

(a)(1) is revised to read as follows:

1836.602–71 Conflict of interest.

(a)(1) All persons participating in an

architect-engineer evaluation, review or

selection activity shall have a written

certification on file in NASA stating

knowledge of and compliance with the

Office of Government Ethics’ Standards

of Ethical Conduct for Employees of the

Executive Branch (August 1992) and the

NASA Supplement (September 28,

1994) to the Office of Government

Ethics’s Standard of Ethical Conduct for

Employees of the Executive Branch

(August 1992). The minimum

certification shall be:

Certification

I, the undersigned, hereby certify that I

have: (i) read the Office of Government

Ethics’ Standard of Ethical Conduct for

Employees of the Executive Branch (August

1992) and the NASA Supplement (September

28, 1994) to the Office of Government Ethics’

Standard of Ethical Conduct for Employees of

the Executive Branch (August 1992); (ii) filed

the relevant [insert ‘‘Standard Form 278’’ for

any employee who’s annual salary is 120

percent above step one of grade 15 of the

General Schedule (GS) or ‘‘Standard Form

450’’ for employees whose annual salary is at

or below step ten of grade 15 of the General

Schedule (GS)]; and, (iii) examined the

attached list of competitors for the [Title]

project before the architect-engineer selection

board. I further certify that I have no

financial or other personal interest in these

firms.

lllllllllllllllllllll

(Signature)

lllllllllllllllllllll

(Date)

(End of certification)

* * * * *

1836.602–71 [Amended]

26. In paragraph (a)(3) of section

1836.602–71, the word ‘‘center’’ is

revised to read ‘‘installation’’ in two

occurrences.

PART 1840 [ADDED AND RESERVED]

27. Part 1840 is added and reserved.

PART 1841—ACQUISITION OF UTILITY

SERVICES

28. Part 1841 is added as set forth

below:

PART 1841—ACQUISITION OF UTILITY

SERVICES

Subpart 1841.1—General

1841.101 Definitions.

Subpart 1841.2—Acquiring Utility Services

1841.201 Policy.

1841.204 GSA areawide contracts.

1841.205 Separate contracts.

1841.205–70 Renewal of contracts.

1841.205–71 Headquarters requirement for

copies of contracts.

1841.205–72 Contents of a negotiated utility

service contract.

1841.205–73 Authorization for procurement

of wellhead natural gas.

1841.205–74 Utility service narrative.

1841.205–75 Contracts requiring

Headquarters approval.

1841.206 Interagency agreements.

Subpart 1841.4—Administration

1841.402 Rate changes and regulatory

intervention.

Subpart 1841.5—Solicitation Provision and

Contract Clauses

1841.501 Solicitation provision and

contract clauses.

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

Subpart 1841.1—General

1841.101 Definitions.

Utility suppliers, as used in this

subpart, may be quasi-public service

corporations, private concerns,

municipalities, associations, or

cooperatives. They generally operate in

a franchised territory without

competition, so they may frequently be

in a sole-source position. Under

common law, public utilities must

render service at reasonable rates and

without discrimination. Their

operations, management, rates, and

profits are usually regulated by Federal,

State, or local regulatory bodies, but

absence of a regulatory body does not

necessarily mean a complete lack of

control. Administrative remedies

pursuant to enabling statutes may be

pursued or complaints may be taken to

a court of competent jurisdiction.

Subpart 1841.2—Acquiring Utility

Services

1841.201 Policy.

(a) Requirements for utility services

shall be determined by technically

qualified personnel who will assist the

contracting officer as required. Before

soliciting technical assistance outside

the agency (see 48 CFR (FAR) 41.203),

technical personnel shall contact the

Environmental Management Division

(Code JE), NASA Headquarters.

(b) Appropriated funds may not be

used to purchase electricity in a manner

inconsistent with state law governing

the provision of electric utility service,

including state utility commission

rulings and electric utility franchises or

service territories established pursuant

to state statute, state regulation, or stateapproved territorial agreements (Pub. L.

100–202, Sec. 8093, 101 Stat. 1329–79).

Before acquiring electric utility service,

the contracting officer shall determine

whether the manner of acquisition, in

particular, competitive acquisition

under 48 CFR (FAR) 41.205(b), would

be inconsistent with state law. Section

8093 of Pub. L. 100–202 is not intended

to affect transfers of electricity to

agencies from Federal power marketing

agencies or the Tennessee Valley

Authority, such as NASA’s power

allocation from the Western Area Power

Marketing Administration. Such

transfers do not constitute ‘‘purchases’’

for purposes of section 8093.

1841.204 GSA Areawide Contracts.

(a) GSA publishes a checklist of

utility services available under its

areawide public utility contracts. The

checklist specifies contract numbers,
Federal Register / Vol. 60, No. 60 / Wednesday, March 29, 1995 / Rules and Regulations 16061

expiration dates, companies, and areas

serviced. Copies of the checklist may be

obtained from GSA, Public Utility

Division (PPU), Public Buildings

Service, Washington, DC 20405 ((202)

501–3994).

(b) In determining whether a GSA

area-wide public utility contract is

adequate to meet requirements,

procurement officers should consider

(1) the areawide contract rates and

volume of service required, (2) any

unusual characteristics of the service

required, (3) any special equipment or

facility requirements, (4) any special

technical contract provisions required,

and (5) any other special circumstances.

(c) If a procurement officer finds that

a separate negotiated contract would be

more advantageous to the Government

than the GSA areawide public utility

contract, the procurement officer shall

submit a request to the Associate

Administrator for Procurement, NASA

Headquarters (Code HS), for a waiver of

the requirement to use the GSA

areawide public utility contract. The

request shall explain the merit of a

separately negotiated contract.

1841.205 Separate contracts.

1841.205–70 Renewal of contracts.

(a) A contract may be renewed or

extended by option, provided that the

contract is not in effect for more than a

total of 5 successive years.

(b) Contracting officers shall consider

selecting an expiration date for the

contract sufficiently after the end of the

fiscal year to ensure that appropriations

will be available when the option is

exercised.

1841.205–71 Headquarters requirement for

copies of contracts.

The contracting officer shall forward,

promptly after execution, one copy of

each contract, service authorization

form, memorandum of understanding,

and modification to the Associate

Administrator for Procurement, NASA

Headquarters (Code HS) and the

Environmental Management Division,

NASA Headquarters (Code JE).

1841.205–72 Contents of a negotiated

utility service contract.

(a) All negotiated utility service

contracts estimated to exceed $2,500

annually shall be written in accordance

with the directions in paragraphs (a)(1)

through (5) of this section:

(1) SF 26. Use Standard Form 26 (see

48 CFR (FAR) 53.215–1(b)).

(2) Appendix A.

(i) Include the rate schedule, which

shall consist of—

(A) The published rate schedule of the

contractor approved or established by a

Federal, State, or other regulatory body;

or

(B) The rate schedule negotiated

between the contractor and the

Government.

(ii) The rate schedule shall bear the

legend ‘‘Appendix A, attached to and

made a part of Contract No. lll,’’

and be entitled ‘‘Rate Schedule.’’ Each

page shall indicate its number and the

total number of pages comprising

Appendix A, as, for example, ‘‘page 1 of

3.’’ In addition to stating the rate

applicable to the contract, Appendix A

shall include any applicable rules or

regulations (whether established by the

regulatory body, the contractor, or

negotiation between the contractor and

the Government) pertaining to the Rate

Schedule. Appendix A may provide for

payment to the contractor of a

nonrecurring, nonrefundable fee not

exceeding $1,000 for the costs of

connecting the contractor’s facilities to,

and disconnecting them from, the

Government’s facilities, if the contract

period is less than 6 months. In all other

instances where a connection charge is

involved, the ‘‘Connection Charge’’

clause (48 CFR (FAR) 52.241–9) and

Appendix C (see paragraph (a)(4) of this

section) shall be included in the

contract.

(3) Appendix B. Include the service

specifications applicable to the contract,

which shall consist of a specially

drafted attachment to the contract

bearing the legend ‘‘Appendix B,

attached to and made a part of Contract

No.lll,’’ and the title of the

appropriate service specifications. Each

page shall indicate its number and the

total number of pages comprising

Appendix B, as, for example, ‘‘page 1 of

3.’’ Such appendix shall contain as a

minimum—

(i) The premises to be served;

(ii) An estimate of the service

requirements;

(iii) The point of delivery to the

Government;

(iv) A description of the service;

(v) A statement of how the service is

to be measured for purposes of billing;

and

(vi) A statement of the capacity and

flow of the service.

(4) Appendix C. Include the

connection charge schedule required

whenever the contract includes the

connection charge clause at 48 CFR

(FAR) 52.241–9 or the termination

clause at 48 CFR (FAR) 52.241–10. It

shall bear the legend ‘‘Appendix C,

attached to and made a part of Contract

No. lll,’’ and be entitled

‘‘Connection Charge Schedule.’’ Each

page shall indicate its number and the

total number of pages comprising

Appendix C, as, for example, ‘‘page 1 of

3.’’ The appendix shall contain as a

minimum a detailed description of the

new facilities to be furnished by the

contractor.

(5) Include any contract clauses

required by 1841.501 or 48 CFR (FAR)

41.501.

(b) Any negotiated utility service

contract estimated not to exceed $2,500

annually shall consist of—

(1) Standard Form 26 (48 CFR (FAR)

53.215–1(b));

(2) An Appendix A (see paragraph

(a)(2) of this section); and

(3) Any contract clauses required by

1841.501 or 48 CFR (FAR) 41.501.

1841.205–73 Authorization for

procurement of wellhead natural gas.

(a) Acquisition of wellhead natural

gas and interstate transportation of the

natural gas to locally franchised

distribution utility companies’ receipt

points (city gate) is considered the

procurement of supplies rather than the

procurement of public utility services

described in 48 CFR (FAR) part 41.

Therefore, wellhead natural gas and

interstate transportation of such gas

should be obtained directly by NASA

under applicable authorities and FAR

procedures governing the acquisition of

supplies. Redelivery of the gas from the

city gate to the NASA facility is

considered a utility service since it is

provided only by the locally franchised

utility. GSA is responsible for obtaining

an appropriate contract for the

redelivery service in accordance with 48

CFR (FAR) 41.204.

(b) GSA provides assistance to Federal

agencies in the procurement of natural

gas wellhead supplies. Contracting

officers requiring assistance in

determining the feasibility of procuring

natural gas supplies on a facility by

facility basis may contact General

Services Administration, Public

Building Services, Public Utilities

Division, Code PPU ((202) 501–3994). In

contacting GSA, contracting officers

should provide data pertaining to

present gas usage exceeding 50,000 Mcf

per year. GSA has found that 50,000 Mcf

is the annual volume below which

wellhead purchases may not be

economically feasible.

1841.205–74 Utility service narrative.

(a) Before initiating negotiations, the

contracting officer shall submit a Utility

Service Narrative for proposed

procurements for new utilities services,

renegotiations or extensions of existing

utility services, or existing contracts that

require a negotiation for change of rate

schedules, to the Associate

Administrator for Procurement (Code
16062 Federal Register / Vol. 60, No. 60 / Wednesday, March 29, 1995 / Rules and Regulations

HS), NASA Headquarters. The Utility

Service Narrative shall include—

(1) A brief technical description of the

service required or being furnished;

(2) Justification of the reasonableness

of the proposed rate;

(3) An outline of the field

installation’s proposed negotiation

tactics, basis for position, and any

alternative position;

(4) An estimate of the annual cost of

service; and

(5) Other related items, as applicable,

such as connection charges, termination

liability, facilities charges, requirement

for Government capital costs, or any

unusual factors affecting the

procurement.

(b) The Associate Administrator for

Procurement (Code HS), with the

coordination of the Environmental

Management Division (Code JE), will

review the information submitted under

paragraph (a) of this section. If NASA

Headquarters desires to participate in

the negotiations, the Associate

Administrator for Procurement (Code

HS), NASA Headquarters, shall inform

the contracting officer within 30 days

after receipt of the Utility Service

Narrative.

1841.205–75 Contracts requiring

Headquarters approval.

Contracts and supplemental

agreements for utility services shall be

submitted to the Associate

Administrator for Procurement, NASA

Headquarters (Code HS), for approval as

required by 48 CFR 1804.7203 and

1807.71.

1841.206 Interagency agreements.

(a) The Department of Defense (DOD)

enters into areawide fuel oil and other

energy-service contracts. DOD areawide

contracts provide that the contractor

shall, upon receipt of an order in the

form prescribed by the contract, furnish

the service involved without further

negotiations as to rates and charges, in

accordance with the established and

field rate schedules applicable to the

service.

(b) When procuring utility services

from another Government agency by

cross-servicing, the procurement office

shall use a memorandum of

understanding specifying the services to

be provided and the conditions under

which they will be supplied. A Utility

Service Narrative shall be submitted in

accordance with 1841.205–74.

Subpart 1841.4—Administration

1841.402 Rate changes and regulatory

intervention.

(a) When the contractor notifies the

contracting officer as provided in the

change of rates clause at 48 CFR (FAR)

52.241–7, or whenever the contractor

requests that rate changes be negotiated,

as provided in the change in rates clause

at 48 CFR (FAR) 52.241–8, the

contracting officer shall notify the

Associate Administrator for

Procurement, NASA Headquarters

(Code HS) and the Environmental

Management Division, NASA

Headquarters (Code JE). The notification

shall include sufficient information to

permit a determination of the monetary

effect of the proposed changes, a

recommendation under paragraph (a) (1)

or (2) of this section, and the basis for

the recommendation.

(1) When notice is received that the

contractor has filed an application for

rate changes before the local regulatory

body, the contracting officer shall

recommend whether or not the

Government should intervene at the

hearing on the application. If it is

recommended that the Government

intervene, the recommendation shall be

accompanied by a statement containing

the basis for intervention and the extent

to which the installation can support

intervention by presenting testimony,

preparing exhibits, and furnishing legal

counsel.

(2) When notice is received that the

contractor requests that rate changes be

negotiated, the contracting officer shall

recommend the position to be taken by

the Government regarding the rate

changes and state the extent to which

installation personnel are available to

support this position.

(b) The Associate Administrator for

Procurement, NASA Headquarters, with

the technical assistance of the

Environmental Management Division

(Code JE), NASA Headquarters, shall

furnish the contracting officer a

recommendation concerning the

proposed rate changes and the extent to

which NASA Headquarters will

participate in the intervention before the

local regulatory body or in negotiations

with the contractor. Before

recommending any action, the Associate

Administrator for Procurement, NASA

Headquarters shall, as necessary,

coordinate with other staff offices or

divisions, or other Government

agencies. The contracting officer shall

await the instructions of the Associate

Administrator for Procurement, NASA

Headquarters, for at least 30 calendar

days before submitting the matter to

GSA (see 48 CFR (FAR) 41.402(b)) or

taking other action concerning the

proposed rate changes.

Subpart 1841.5—Solicitation Provision

and Contract Clauses

1841.501 Solicitation provision and

contract clauses.

The contracting officer shall insert the

clause at 48 CFR 1852.241–70, Renewal

of Contract, whenever it is desirable that

the utility service be provided under the

same terms and conditions for more

than 1 year (see 1841.205–70).

PART 1842—CONTRACT

ADMINISTRATION

1842.202–70 [Amended]

29. In section 1842.202–70, paragraph

(d), ‘‘Headquarters Supply and

Equipment Management Office, Code

JLE’’ is revised to read ‘‘Headquarters

Logistics Management Office, Code

JLG’’.

Subpart 1842.73 [Added]

30. Subpart 1842.73 is added as set

forth below:

Subpart 1842.73—Audit Tracking and

Resolution

1842.7301 NASA external audit followup

system.

(a) This section implements OMB

Circular No. A–50, NASA Management

Instruction (NMI) 9970.1A, Audit

Followup, and NASA Audit Followup

Handbook 9970.2, which provide more

detailed guidance. Recommendations

for external audits (contracts and OMB

Circulars No. A–128, Audits of State

and Local Governments, and A–133,

Audits of Institutions of Higher

Learning and Other Non-Profit

Institutions) shall be resolved by formal

review and approval procedures

analogous to those at 48 CFR 1815.807–

71.

(b) The external audit followup

system tracks all contract and OMB

Circular A–128 or A–133 audits where

NASA has resolution and disposition

authority. The objective of the tracking

system is to ensure that audit

recommendations are resolved as

expeditiously as possible, but at a

maximum, within 6 months of the date

of the audit report.

(c) (1) The identification and tracking

of contract audit reports under NASA

cognizance are accomplished in

cooperation with DCAA by means of the

DCAA form, Contract Audit Followup

Summary Sheet. The use of this form by

DCAA and NASA is covered in Chapter

6 of the NASA Audit Followup

Handbook.

(2) Identification and tracking of A–

128 and A–133 audit reports are

accomplished in cooperation with the
Federal Register / Vol. 60, No. 60 / Wednesday, March 29, 1995 / Rules and Regulations 16063

NASA Office of the Inspector General

(OIG) by means of a transmittal

memorandum. A transmittal

memorandum is sent by the OIG to the

procurement officer of each NASA field

installation having an award (contract,

grant, or other agreement) covered by

the audit report. The transmittal

memorandum will identify whether

there were any audit findings.

(d) (1) Chapter 6 of the NASA Audit

Followup Handbook identifies which

contract audit reports are reportable

semiannually to Code HC.

(2) Only trackable A–128 and A–133

audit reports involving the following

shall be reported semiannually to Code

HC—

(i) A significant management control

issue; or

(ii) For an individual NASA award,

either the lower of 10 percent or $10,000

of the costs incurred in the period

covered by the audit are questioned; or

for institution-wide issues, the lower of

10 percent or $10,000 of the total costs

incurred involving Government funds

for the period covered by the audit are

questioned.

(e) (1) The resolution and disposition

of contract audits is covered by Chapter

6 of the NASA Audit Followup

Handbook.

(2) The resolution and disposition of

A–128 and A–133 are handled as

follows:

(i) Audit findings pertaining to an

individual NASA award are the

responsiblility of the procurement

officer administering that award.

(ii) Audit findings having an

institution-wide impact are the

responsibility of the cognizant Federal

agency. OMB’s January 6, 1986, Federal

Register Notice (51 FR 552), titled

‘‘Federal Agencies Responsible for Cost

Negotiation and Audit of State and

Local Governments,’’ provides

cognizant agency assignments for OMB

Circular A–128. For organizations

subject to OMB Circular A–133, the

cognizant agency is either assigned

pursuant to OMB Circular A–88,

‘‘Indirect Cost Rates, Audit, and Audit

Followup at Educational Institutions,’’

or if not formally assigned, it is based

on which Federal agency provided the

largest amount of funds for the audited

period. In such cases where NASA is

the cognizant Federal agency, audit

resolution and disposition is the

responsibility of the procurement officer

for the ‘‘cognizant field installation,’’

i.e., the field installation having the

largest total award dollar amount for the

audited period. A copy of the

memorandum dispositioning the

findings shall be provided by each field

installation having resolution

responsibility for the particular report to

the OIG Center office within whose

geographic area of responsibility the

audited organization is located.

PART 1845—GOVERNMENT

PROPERTY

1845.106–70 [Amended]

31. In section 1845.106–70, paragraph

(e), ‘‘Supply and Equipment

Management Office (Code JLE)’’ is

revised to read ‘‘Logistics Management

Office (Code JLG)’’.

1845.405 [Amended]

32. In section 1845.405, paragraph (b),

‘‘Supply and Equipment Management

Office (Code JLE)’’ is revised to read

‘‘Logistics Management Office (Code

JLG)’’ and ‘‘Code IRD’’ is revised to read

‘‘Code IR’’.

1845.407 [Amended]

33. In section 1845.407, paragraph (a),

‘‘Supply and Equipment Management

Office (Code JLE)’’ is revised to read

‘‘Logistics Management Office (Code

JLG)’’.

1845.608–6 [Amended]

34. In section 1845.608–6, ‘‘Supply

and Equipment Management Office

(Code JLE)’’ is revised to read ‘‘Logistics

Management Office (Code JLG)’’.

1845.610–2 [Amended]

35. In section 1845.610–2, ‘‘Supply

and Equipment Management Office

(Code JLE)’’ is revised to read ‘‘Logistics

Management Office (Code JLG)’’.

1845.7203 [Amended]

36. In section 1845.7203, ‘‘Supply and

Equipment Management Office is

revised to read ‘‘Logistics Management

Office’’ and ‘‘Code JLE’’ is revised to

read ‘‘Code JLG’’ in two occurrences.

1845.7205 [Amended]

37. In section 1845.7205, paragraph

(f)(1), ‘‘Code JLE’’ is revised to read

‘‘Code JLG’’.

38. In section 1845.7205, paragraph

(i), ‘‘Code JLE’’ is revised to read ‘‘Code

JLG’’.

1845.7213 [Amended]

39. In section 1845.7213, paragraph

(c)(1) introductory text, ‘‘Supply and

Equipment Management Office (Code

JLE)’’ is revised to read ‘‘Logistics

Management Office (Code JLG)’’.

PART 1851—USE OF GOVERNMENT

SOURCES BY CONTRACTORS

40. In section 1851.102, the first

sentence of paragraph (b) is revised to

read as follows:

1851.102 Authorization to use Government

supply sources.

(a) * * *

(b) The contracting officer shall

forward letters of authorization to the

installation’s Logistics Management

Officer, Attention: Activity Address

Code Coordinator, who will forward

them to the Logistics Management

Office, NASA Headquarters (Code JLG),

for verification and transmittal to 

GSA. * * *

* * * * *

PART 1852—SOLICITATION

PROVISIONS AND CONTRACT

CLAUSES

1852.208–70, 1852.208–71, 1852.208–72,

1852.208–73, 1852.208–74, 1852.208–76,

1852.208–77, 1852.208–78, 1852.208–79,

1852.208–80, 1852.208–83 [Removed]

41. Sections 1852.208–70, 1852.208–

71, 1852.208–72, 1852.208–73,

1852.208–74, 1852.208–76, 1852.208–

77, 1852.208–78, 1852.208–79,

1852.208–80, and 1852.208–83 are

removed.

1852.208–75 [Redesignated as 1852.241–

70]

42. Section 1852.208–75 is

redesignated as section 1852.241–70

and the introductory text is revised to

read as follow:

1852.241–70 Renewal of Contract.

As prescribed in 48 CFR 1841.501(b),

insert the following clause:

* * * * *

PART 1870—NASA SUPPLEMENTARY

REGULATIONS

1870.103 NASA acquisition of

investigations.

43. In Appendix C to Appendix I of

section 1870.103, Section II, paragraph

A.3.a., ‘‘Office of Policy Coordination

and International Relations, Code IRD’’

is revised to read ‘‘Office of External

Relations, Code IR’’ and in paragraph

A.3.d., ‘‘Code IRD’’ is revised to read

‘‘Code IR’’ and ‘‘Office of Policy

Coordination and International

Relations’’ is revised to read ‘‘Office of

External Relations’’.

[FR Doc. 95–7612 Filed 3–28–95; 8:45 am]

BILLING CODE 7510–01–M

48 CFR Parts 1815, 1837 and 1852

RIN 2700–AB40

Revision to NASA FAR Supplement;

Uncompensated Overtime

AGENCY: Office of Procurement,

Analysis Division, National Aeronautics

and Space Administration (NASA).