99-18414. Risk Management  

  • [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 kenneth.sateriale@hq.nasa.gov
    
    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.
    * * * * *
    
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    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
    
    
    

Document Information

Published:
07/20/1999
Department:
National Aeronautics and Space Administration
Entry Type:
Proposed Rule
Action:
Proposed rule.
Document Number:
99-18414
Dates:
Comments should be submitted on or before September 20, 1999.
Pages:
38880-38884 (5 pages)
PDF File:
99-18414.pdf
CFR: (9)
48 CFR 1807
48 CFR 1811
48 CFR 1812
48 CFR 1815
48 CFR 1816
More ...