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Panoptic Enterprises' FEDERAL CONTRACTS DISPATCH

DATE: June 27, 2002

SUBJECT: National Aeronautics and Space Administration Federal Acquisition Regulation (FAR) Supplement (NFS) Class Deviation to Major Breach of Safety or Security Clause

SOURCE: Procurement Information Circular (PIC) 02-11, June 24, 2002

AGENCIES: NASA

ACTION: Class Deviation

SYNOPSIS: NASA is issuing a class deviation that adds an Alternate I to NFS 1852.223-75, Major Breach of Safety or Security, for use in contracts with educational or other non-profit institutions and contracts for commercial items. Also, this provides guidance on the use of NFS 1852.223-75.

EDITOR'S NOTE: For more on the initial adoption of NFS 1852.223-75, see the June 13, 2000, FEDERAL CONTRACTS DISPATCH "National Aeronautics and Space Administration Federal Acquisition Regulation Supplement (NFS); Risk Management."

For more on recent changes to NFS 1852.223-75, see the February 20, 2002, FEDERAL CONTRACTS DISPATCH "National Aeronautics and Space Administration Federal Acquisition Regulation (FAR) Supplement (NFS); Major Breach of Security."

EFFECTIVE DATE: PIC 02-11 is effective June 24, 2002, and it will remain in effect until canceled or superseded.

FOR FURTHER INFORMATION CONTACT: Jeff Cullen, NASA Headquarters Office of Procurement, Contract Management Division (Code HK), Washington, DC 20546; telephone: 202-358-1784; or by e-mail: jcullen@hq.nasa.gov.

SUPPLEMENTAL INFORMATION: Since July 13, 2000, NFS 1852.223-75 has been required in solicitations and contracts with an estimated value of $500,000 or more. Paragraph (a) of the clause states, "A major breach of safety may constitute a breach of contract that entitles the government to exercise any of its rights and remedies applicable to material parts of this contract, including termination for default." Paragraph (b) makes the same statement about "a major breach of security". However, contracts with educational or other nonprofit institutions and contracts for commercial items do not include a "termination for default" clause - they include either a "termination for convenience" or a "termination for cause" clause. Therefore, a NFS class deviation has been developed for use in contracts with educational or other nonprofit institutions and contracts for commercial items that removes "for default" from these two paragraphs.

In addition, PIC 02-11 provides guidance on the applicability and implementation of NFS 1852.223-75. Among the more noteworthy guidance provide are the following:

FOR FURTHER INFORMATION CONTACT: Panoptic Enterprises at 703-451-5953 or by e-mail to Panoptic@FedGovContracts.com.

Copyright 2002 by Panoptic Enterprises. All Rights Reserved.

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