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Barry McVay's FEDERAL CONTRACTS DISPATCH

DATE: June 15, 2000

FROM: Barry McVay, CPCM

SUBJECT: National Aeronautics and Space Administration (NASA); Procurement Information Circular (PIC) 00-07, Use of "Observance of Legal Holidays" Clause

SOURCE: PIC 00-07, June 13, 2000

AGENCIES: NASA

ACTION: Notice

SYNOPSIS: PIC 00-07 provides guidance to contracting officers on the use of Alternates I and II to NASA Federal Acquisition Regulation (FAR) Supplement (NFS) 1852.242-72, Observance of Legal Holidays.

EFFECTIVE DATE: June 13, 2000.

FOR FURTHER INFORMATION CONTACT: Jim Dolvin, Code HK, 202-358-1279, e-mail: jdolvin@hq.nasa.gov.

SUPPLEMENTAL INFORMATION: NFS 1852.242-72, Observance of Legal Holidays, is require to be included in all contracts for work performed at a NASA installation, and it advises the contractor of the ten regular government holidays. Alternate I of the clause is used in cost-reimbursement contracts when contractor employees will not be granted access to the NASA installation during the holidays. Alternate II is used in cost-reimbursement contracts when contractor employees will be dismissed if installation employees are granted administrative leave because of inclement weather or potentially hazardous conditions. The cost of salaries and wages incurred by the contractor during the excused absence is reimbursable under the contract.

Until 1998, the two alternates were linked, so that Alternate II could not be used without Alternate I. Procurement Notice (PN) 97-12, issued June 16, 1998, removed this linkage, allowing the two alternates to be used independently.

If contractor work can be performed on-site without the presence of a government workforce, then Alternate I should not be included in the contract, and the contractor's holiday schedule should be determined by its own holiday policies.

Alternate II should be included in most contracts to inform the contractor about dismissing its employees in the event of emergencies such as extreme weather conditions and power outages.

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

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