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Barry McVay's FEDERAL CONTRACTS DISPATCH

DATE: April 25, 2000

FROM: Barry McVay, CPCM

SUBJECT: National Aeronautics and Space Administration Federal Acquisition Regulation (FAR) Supplement (NFS); Partial or Total Immunity from Tort Liability for State Agencies and Charitable Institutions

SOURCE: Federal Register, April 25, 2000, Vol. 65, No. 80, page 24170

AGENCIES: National Aeronautics and Space Administration (NASA)

ACTION: Proposed Rule

SYNOPSIS: NASA is proposing to amend NASA Federal Acquisition Regulation (FAR) Supplement (NFS) Subpart 1828.3, Insurance, and to add a provision and two clauses to NFS Part 1852, to allow state agencies and charitable institutions partial or total immunity from tort liability on NASA contracts. This was permitted in the 1990 version of the FAR but was deleted by Federal Acquisition Circular (FAC) 90-37, dated January 26, 1996. NASA now finds that it needs the provision and clauses.

DATES: Submit comments no later than June 26, 2000.

ADDRESSES: Submit comments to Richard Kall, NASA Headquarters, Office of Procurement, Contract Management Division (Code HK), Washington, DC 20546, or by e-mail to r.kall@hq.nasa.gov.

FOR FURTHER INFORMATION CONTACT: Richard Kall, 202-358-0459.

SUPPLEMENTAL INFORMATION: FAC 90-37 deleted FAR 52.228-6, Insurance -- Immunity from Tort Liability, because it applied only to cost-reimbursement contracts for research and development that were awarded to state agencies or charitable institutions that claimed partial or total immunity from tort liability. In addition, Alternate I and Alternate II of FAR 52.228-7, Insurance -- Liability to Third Persons, were deleted (Alternate I was to be used when a state agency or charitable institution claimed partial immunity, and Alternate II was to be used when a state agency or charitable institution claimed total immunity). FAC 90-37 also deleted what was then FAR 28.311-1, Solicitation Provision, which prescribed the use of FAR 52.228-6, and all references to tort liability in what was then FAR 28.311-2, Contract Clause (specifically, the directions on when to use the alternates to FAR 52.228-7).

NASA has awarded cost-reimbursement contracts to state agencies and charitable institutions that claim partial or total immunity from tort liability. Therefore, NASA is adding to the NFS language similar to the language that was removed from the FAR by FAC 90-37.

The following are the proposed changes to the NFS:

FOR FURTHER INFORMATION CONTACT: Barry McVay at 703-451-5953 or by e-mail to BarryMcVay@FedGovContracts.com.

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