[Federal Register Volume 63, Number 159 (Tuesday, August 18, 1998)]
[Rules and Regulations]
[Pages 44170-44171]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-22023]
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NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
48 CFR Parts 1836 and 1852
Partnering for Construction Contracts
AGENCY: Office of Procurement, Contract Management Division, National
Aeronautics and Space Administration (NASA).
ACTION: Final rule.
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SUMMARY: This final rule amends NASA's Federal Acquisition Regulation
Supplement (NFS) to set forth a clause to be used to promote partnering
under construction contracts when it is determined that the benefits to
be derived exceed the costs.
EFFECTIVE DATE: August 18, 1998.
FOR FURTHER INFORMATION CONTACT: Mr. Joseph Le Cren, Telephone: (202)
358-0444.
SUPPLEMENTARY INFORMATION:
Background
On April 29, 1998, a proposed rule to amend the NFS to establish a
clause to promote the use of partnering under construction contracts
was published in the Federal Register (63 FR 23414-23415) for comment.
The clause is to be included in construction contracts when a
determination is made that the benefits to be derived exceed the costs.
Comments were submitted by only one commenter. The commenter believes
the proposed rule is not strong enough since it neither makes
partnering mandatory for construction contracts, nor does it make
mandatory participation by all subcontractors and the architect and
design contractor under a construction contract. The comments were
reviewed and considered; however, no changes were made to the proposed
rule.
Impact
NASA certifies that this regulation will not have a significant
economic effect on a substantial number of small entities under the
Regulatory Flexibility Act (5 U.S.C. 601 et. seq.) because it
establishes a voluntary communication program applicable only to
construction contracts. This rule does not impose any reporting or
record keeping requirements subject to the Paperwork Reduction Act.
List of Subjects in 48 CFR Parts 1836 and 1852
Government procurement.
Tom Luedtke,
Deputy Associate Administrator for Procurement.
Accordingly, 48 CFR 1836 and 1852 are amended as follows:
1. The authority citation for 48 CFR Parts 1836 and 1852 continues
to read as follows:
Authority: 42 U.S.C. 2473(c)(1).
PART 1836--CONSTRUCTION AND ARCHITECT-ENGINEER CONTRACTS
1836.70 [Added]
2. Subpart 1836.70 is added to read as follows:
Subpart 1836.70 Partnering
1836.7001 Definition.
1836.7002 General.
1836.7003 Policy.
1836.7004 NASA solicitation provision and contract clause.
1836.70 Partnering.
1836.7001 Definition.
Partnering means a relationship of open communication and close
cooperation that involves both Government and Contractor personnel
working together for the purpose of establishing a mutually beneficial,
proactive, cooperative environment within which to achieve contract
objectives and resolve issues and implementing actions as required.
1836.7002 General.
(a) The establishment of a partnering environment usually leads to
higher quality products completed more
[[Page 44171]]
quickly at lower overall costs and with fewer accidents and litigation.
(b) The use of partnering is encouraged as it has been shown to
reduce the average contract cost and schedule growth and to reduce
contract claims and litigation.
(c) Partnering is a voluntary contract relationship within the
management process that is not to be used to unofficially alter terms
of the contract.
1836.7003 Policy.
(a) Partnering should be used on a contract when the contracting
officer, in coordination with the project manager, determines that the
benefits to be achieved from its use are expected to be greater than
the costs.
(b) In determining whether the benefits of partnering are greater
than the costs, the following factors should be considered:
(1) The estimated dollar value of the contract;
(2) The complexity of the work to be performed;
(3) The contemplated length of the contract; and
(4) The estimated costs to be incurred in conducting the
partnership development and team building initial and follow-up
workshops.
1836.7004 NASA solicitation provision and contract clause.
The contracting officer may insert a clause substantially the same
as stated at 1852.236-75, Partnering for Construction Contracts, in
solicitations and contracts for construction, when it has been
determined in accordance with 1836.7003 that the benefits to be derived
from partnering exceed the costs.
PART 1852--SOLICITATION PROVISIONS AND CONTRACT CLAUSES
1852.236-75 [Added]
3. Section 1852.236-75 is added to read as follows:
1852.236-75 Partnering for construction contracts.
As prescribed in 1836.7004, insert the following clause:
Partnering for Construction Contracts--August 1998
(a) The terms ``partnering'' and ``partnership'' used herein
shall mean a relationship of open communication and close
cooperation that involves both Government and Contractor personnel
working together for the purpose of establishing a mutually
beneficial, proactive, cooperative environment within which to
achieve contract objectives and resolve issues and implementing
actions as required.
(b) Partnering will be a voluntary commitment mutually agreed
upon by at least NASA and the prime contractor, and preferably the
subcontractors and the A&E design contractor, if applicable.
Sustained commitment to the process is essential to assure success
of the relationship.
(c) NASA intends to facilitate contract management by
encouraging the foundation of a cohesive partnership with the
Contractor, its subcontractors, the A&E design contractor, and
NASA's contract management staff. This partnership will be
structured to draw on the strengths of each organization to identify
and achieve mutual objectives. The objectives are intended to
complete the contract requirements within budget, on schedule, and
in accordance with the plans and specifications.
(d) To implement the partnership, it is anticipated that within
30 days of the Notice to Proceed the prime Contractor's key
personnel, its subcontractors, the A&E design contractor, and NASA
personnel will attend a partnership development and team building
workshop. Follow-up team building workshops will be held
periodically throughout the duration of the contract as agreed to by
the Government and the Contractor.
(e) Any cost with effectuating the partnership will be agreed to
in advance by both parties and will be shared with no change in the
contract price. The contractor's share of the costs are not
recoverable under any other Government award.
(End of clause)
[FR Doc. 98-22023 Filed 8-17-98; 8:45 am]
BILLING CODE 7510-01-P
