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Panoptic Enterprises' FEDERAL CONTRACTS DISPATCH

DATE: April 14, 2004

SUBJECT: National Aeronautics and Space Administration Federal Acquisition Regulation (FAR) Supplement (NFS); Five-Year Limitation on Task and Delivery Order Contracts

SOURCE: Procurement Information Circular (PIC) 04-09, April 9, 2004

AGENCIES: National Aeronautics and Space Administration (NASA)

ACTION: Guidance

SYNOPSIS: PIC 04-09 implements Section 843 of the National Defense Authorization Act for Fiscal Year 2004 (Public Law 108-136) by specifying that task or delivery order contracts entered into under that section may cover a total period of not more than five years.

EDITOR'S NOTE: For more on NASA's recent clarification on its five-year limitation on all its contracts regardless of type, see the March 3, 2004, FEDERAL CONTRACTS DISPATCH "Performance Period Limitations."

For more on the acquisition-related provisions of the National Defense Authorization Act for Fiscal Year 2004, see the November 25, 2003, FEDERAL CONTRACTS DISPATCH "Enactment of the National Defense Authorization Act for Fiscal Year 2004."

For more on the Department of Defense's implementation of Section 843 of the National Defense Authorization Act for Fiscal Year 2004 (Public Law 108-136), see the March 23, 2004, FEDERAL CONTRACTS DISPATCH "Defense Federal Acquisition Regulation Supplement (DFARS); Contract Period for Task and Delivery Order Contracts."

EFFECTIVE DATE: April 9, 2004.

FOR FURTHER INFORMATION CONTACT: Tom O'Toole, Code HK, 202-358-0478, e-mail: thomas.otoole@nasa.gov.

SUPPLEMENTAL INFORMATION: Section 843 of Public Law 108-136 amends the general authority for task and delivery order contracts at 10 U.S.C. 2304a to specify that task or delivery order contacts may cover a total period of not more than 5 years, and that the total period includes all options or modifications. This limitation applies to contracts awarded by NASA, the Department of Defense, and the Coast Guard.

PIC 04-09 implements Section 843 by stating that the five year limitation includes options, modifications, or any other ordering period extensions (for example, subsequent award term periods), and that Section 843 does not permit deviations. However, "the five year limitation does not apply to task and delivery order contracts awarded pursuant to other statutory authority, and the following awards are not subject to the Section 843 limitations:

      "a. Advisory and assistance service task order contracts (authorized by 10. U.S.C. 2304b). These contracts are limited by statute to five years, with the authority to extend an additional six months (see FAR 16.505(c) [Ordering]).
      "b. Definite quantity contracts.
      "c. GSA [General Services Administration] schedule contracts.
      "d. Multi-agency contracts awarded by agencies other than NASA, DOD, or the Coast Guard."

PIC 04-09 goes on to state, "Performance of orders placed within the ordering period may extend for up to one year past the end of the ordering period if the contracting officer determines that performance of the order cannot reasonably be deferred to any planned follow-on contract. Orders that require performance of more than one year past the end of the ordering period must be approved by Code H [Assistant Administrator or Deputy Assistant Administrator for Procurement, Office of Procurement, NASA Headquarters] prior to issuance. Centers shall submit approval requests, with full rationale for the necessity of placing the order, to Code HS [Headquarters Office of Procurement] at least two weeks before the planned issuance of the order."

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

Copyright 2004 by Panoptic Enterprises. All Rights Reserved.

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