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Barry McVay's FEDERAL CONTRACTS DISPATCH

DATE: August 1, 2000

FROM: Barry McVay, CPCM

SUBJECT: National Aeronautics and Space Administration Federal Acquisition Regulation (FAR) Supplement (NFS); Contract Bundling

SOURCE: Federal Register, August 1, 2000, Vol. 65, No. 148, page 46875

AGENCIES: National Aeronautics and Space Administration (NASA)

ACTION: Final Rule

SYNOPSIS: NASA is revising NFS to eliminate contract bundling coverage that duplicates coverage in the FAR, and to supplement the FAR coverage to establish internal administrative procedures for justifying contract bundling.

EDITOR'S NOTE: For more on Federal Acquisition Circular (FAC) 97-15, which contained the FAR interim rule that implemented the contract bundling rules, see the January 2000 Federal Contracts Perspective article "FAC 97-15 Addresses Foreign Acquisition, Contract Bundling, Award Fee Determinations." For more on FAC 97-19, which finalized the FAR interim rule with changes, see the July 26, 2000, FEDERAL CONTRACTS DISPATCH "Federal Acquisition Circular (FAC) 97-19, Miscellaneous Amendments."

EFFECTIVE DATE: August 1, 2000.

FOR FURTHER INFORMATION CONTACT: Tom O'Toole, NASA, Office of Procurement, Contract Management Division (Code HK), 202-358-0478.

SUPPLEMENTAL INFORMATION: On December 27, 1999, FAC 97-15 was published, and it included revisions to the FAR to implement Sections 411 through 417 of the Small Business Reauthorization Act of 1997 (Public Law 105-135), which require agencies to avoid unnecessary contract bundling. On July 26, 2000, FAC 97-19 was published, and it finalized the interim rule with several changes, none of which affect this final rule.

NFS 1819.202-170, Contract Consolidations, required the contracting officer to prepare and submit an "impact assessment" on all proposed contract consolidations of $5 million or more that are not reserved for small or 8(a) firms. This requirement overlaps those added to the FAR as FAR 7.107, Additional Requirements for Acquisitions Involving Bundling of Contract Requirements, by FAC 97-15 and finalized by FAC 97-19. Therefore, to conform the NFS to the FAR, NASA is eliminating its separate coverage on consolidations. However, NASA is supplementing FAR 7.107 by adding internal administrative procedures in the following new NFS sections:

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

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