FedGovContracts.com

Panoptic Enterprises' FEDERAL CONTRACTS DISPATCH

DATE: February 20, 2002

SUBJECT: National Aeronautics and Space Administration Federal Acquisition Regulation (FAR) Supplement (NFS); Major Breach of Security

SOURCE: Federal Register, February 20, 2002, Vol. 67, No. 34, page 7617

AGENCIES: National Aeronautics and Space Administration (NASA)

ACTION: Final Rule

SYNOPSIS: NASA is amending NFS 1852.223-75, Major Breach of Safety or Security, to more clearly state that a major breach of security is an act or omission by the contractor that results in various outcomes (such as compromise of classified information, illegal technology transfer, etc.); and to clarify that two of the outcomes that are considered major breaches of security are equipment or property damage from vandalism greater than $250,000, and theft greater than $250,000.

EFFECTIVE DATE: February 20, 2002.

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: This final rule revises paragraph (b) of NFS 1852.223-75, Major Breach of Safety or Security, to read as follows:

"Security is the condition of safeguarding against espionage, sabotage, crime (including computer crime), or attack. A major breach of security 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. A major breach of security may occur on or off government installations, but must be related directly to the work on the contract. A major breach of security is an act or omission by the contractor that results in compromise of classified information, illegal technology transfer, workplace violence resulting in criminal conviction, sabotage, compromise or denial of information technology services, equipment or property damage from vandalism greater than $250,000, or theft greater than $250,000."

The words "is an act or omission by the contractor that" and "equipment or property damage from vandalism greater than $250,000, or theft greater than $250,000" are added to paragraph (b). Previously, paragraph (b) stated that a major breach of security may arise from damage or loss greater than $250,000, but it was unclear whether this outcome was separate or had to be combined with other outcomes -- for example, did an illegal technology transfer have to produce damage that was greater than $250,000 to be considered a major security breach, or was any illegal technology transfer considered a major security breach, and damage or loss greater than $250,000 considered a major security breach?

In addition, paragraph (c)(3) of NFS 1816.405-274, Award Fee Evaluation Factors, which addresses major breaches of security in award fee determinations, is revised to be consistent with the revised NFS 1852.223-75.

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.

Return to the Dispatches Library.

Return to the Main Page.