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Barry McVay's FEDERAL CONTRACTS DISPATCH

DATE: September 20, 2000

FROM: Barry McVay, CPCM

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

SOURCE: Federal Register, September 20, 2000, Vol. 65, No. 183, page 56859

AGENCIES: National Aeronautics and Space Administration (NASA)

ACTION: Proposed Rule

SYNOPSIS: NASA is proposing to amend NFS 1811.603, Procedures, to specify that use of a priority rating under the Defense Priorities and Allocations System (DPAS) regulation is not required unless the acquisition is in one of the Schedule L (sic) categories of the DPAS.

EDITOR'S NOTE: The DPAS regulation is in Title 15 of the Code of Federal Regulations, Commerce and Foreign Trade, Part 700, Defense Priorities and Allocations System. It is administered by the Department of Commerce, Bureau of Export Administration, Office of Strategic Industries and Economic Security, and is available on the Internet at http://www.doc-bxa.bmpcoe.org/dpas.html.

Current NFS 1811.603 and the proposed rule both refer to "Schedule L of the DPAS." There is no "Schedule L." However, there is "Schedule 1" to 15 CFR Part 700, Approved Programs and Delegate Agencies, which consists of all the DPAS programs, including those identified as being in "Schedule L."

DATES: Comments should be submitted on or before November 20, 2000.

ADDRESSES: Submit comments to James H. Dolvin, NASA Headquarters, Office of Procurement, Contract Management Division (Code HK), Washington, DC 20546, or by e-mail to: jdolvin1@mail.hq.nasa.gov.

FOR FURTHER INFORMATION CONTACT: James H. Dolvin, Code HK, 202-358-1279, e-mail: jdolvin1@mail.hq.nasa.gov.

SUPPLEMENTAL INFORMATION: The Defense Production Act of 1950 authorizes the president to require "the priority performance of contracts and orders necessary or appropriate to promote the national defense over other contracts or orders; to allocate materials, services, and facilities as necessary or appropriate to promote the national defense; and to require the allocation of, or the priority performance under contracts or orders relating to, supplies of materials, equipment, and services in order to assure domestic energy supplies for national defense needs" (DPAS Section 700.1, Purpose of This Regulation). DPAS is the program which implements the Defense Production Act by requiring that contractors give priority treatment to contracts which have priority ratings.

NFS Subpart 1811.6, Priorities and Allocations, contains NFS 1811.603, and paragraph (e)(i) of NFS 1811.603 states that "the use of priority ratings on NASA contracts and purchase orders is mandatory except as noted in paragraph (e)(ii) of this section." Exceptions in paragraph (e)(ii) include orders against Federal Supply Schedules, petroleum, gas, solid fuel, electric power, production or construction equipment, and several other items.

This proposed rule would change NFS 1811.603(e)(i) so that it states "priority ratings are assigned on individual contracts and purchase orders by the contracting officer." The only other changes, other than some minor editorial changes, would be to reorganize NFS 1811.603 -- the exceptions would remain the same, and so would the authorized programs:

      A1 -- Aircraft
      A2 -- Missiles
      A3 -- Ships
      A5 -- Weapons
      A6 -- Ammunition
      A7 -- Electronic and Communications Equipment
      B1 -- Military Building Supplies
      B8 -- Production Equipment (For Contractor's Account)
      B9 -- Production Equipment (Government-Owned)
      C2 -- Construction
      C3 -- Maintenance, Repair, and Operating Supplies for Facilities
      C9 -- Miscellaneous/Other

EDITOR'S NOTE: The Federal Contracts Bookstore (http://www.FedGovContracts.com/bookstor.htm) has "The Defense Priorities and Allocations System" by Barry McVay. It was revised in 2000, and is $19.95. Since the Commerce Department estimates that 700,000 DPAS rated orders are issued annually, you need to know what DPAS is and your obligations under it!

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

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