Acquisition regulations: Construction contract partnering,

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Federal Register: August 18, 1998 (Volume 63, Number 159)Rules and RegulationsPage 44170-44171From the Federal Register Online via GPO Access [wais.access.gpo.gov]

DOCID:fr18au98-18

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Parts 1836 and 1852

Partnering for Construction Contracts

AGENCY: Office of Procurement, Contract Management Division, National Aeronautics and Space Administration (NASA).

ACTION: Final rule.

SUMMARY: This final rule amends NASA's Federal Acquisition Regulation Supplement (NFS) to set forth a clause to be used to promote partnering under construction contracts when it is determined that the benefits to be derived exceed the costs.

EFFECTIVE DATE: August 18, 1998.

FOR FURTHER INFORMATION CONTACT: Mr. Joseph Le Cren, Telephone: (202) 358-0444.

SUPPLEMENTARY INFORMATION:

Background

On April 29, 1998, a proposed rule to amend the NFS to establish a clause to promote the use of partnering under construction contracts was published in the Federal Register (63 FR 23414-23415) for comment. The clause is to be included in construction contracts when a determination is made that the benefits to be derived exceed the costs. Comments were submitted by only one commenter. The commenter believes the proposed rule is not strong enough since it neither makes partnering mandatory for construction contracts, nor does it make mandatory participation by all subcontractors and the architect and design contractor under a construction contract. The comments were reviewed and considered; however, no changes were made to the proposed rule.

Impact

NASA certifies that this regulation will not have a significant economic effect on a substantial number of small entities under the Regulatory Flexibility Act (5 U.S.C. 601 et. seq.) because it establishes a voluntary communication program applicable only to construction contracts. This rule does not impose any reporting or record keeping requirements subject to the Paperwork Reduction Act.

List of Subjects in 48 CFR Parts 1836 and 1852

Government procurement. Tom Luedtke, Deputy Associate Administrator for Procurement.

Accordingly, 48 CFR 1836 and 1852 are amended as follows:

1. The authority citation for 48 CFR Parts 1836 and 1852 continues to read as follows:

Authority: 42 U.S.C. 2473(c)(1).

PART 1836--CONSTRUCTION AND ARCHITECT-ENGINEER CONTRACTS

1836.70 [Added]

2. Subpart 1836.70 is added to read as follows:

Subpart 1836.70 Partnering

1836.7001 Definition. 1836.7002 General. 1836.7003 Policy. 1836.7004 NASA solicitation provision and contract clause.

1836.70 Partnering.

1836.7001 Definition.

Partnering means a relationship of open communication and close cooperation that involves both Government and Contractor personnel working together for the purpose of establishing a mutually beneficial, proactive, cooperative environment within which to achieve contract objectives and resolve issues and implementing actions as required.

1836.7002 General.

  (a) The establishment of a partnering environment usually leads to higher quality products completed more

[Page 44171]quickly at lower overall costs and with fewer accidents and litigation.

  (b) The use of partnering is encouraged as it has been shown to reduce the average contract cost and schedule growth and to reduce contract claims and litigation.

  (c) Partnering is a voluntary contract relationship within the management process that is not to be used to unofficially alter terms of the contract.

1836.7003 Policy.

  (a) Partnering should be used on a contract when the contracting officer, in coordination with the project manager, determines that the benefits to be achieved from its use are expected to be greater than the costs.

  (b) In determining whether the benefits of partnering are greater than the costs, the following factors should be considered:

  (1) The estimated dollar value of the contract;

  (2) The complexity of the work to be performed;

  (3) The contemplated length of the contract; and

  (4) The estimated costs to be incurred in conducting the partnership development and team building initial and follow-up workshops.

1836.7004 NASA solicitation provision and contract clause.

The contracting officer may insert a clause substantially the same as stated at 1852.236-75, Partnering for Construction Contracts, in solicitations and contracts for construction, when it has been determined in accordance with 1836.7003 that the benefits to be derived from partnering exceed the costs.

PART 1852--SOLICITATION PROVISIONS AND CONTRACT CLAUSES

1852.236-75 [Added]

3. Section 1852.236-75 is added to read as follows:

1852.236-75 Partnering for construction contracts.

As prescribed in 1836.7004, insert the following clause:

Partnering for Construction Contracts--August 1998

  (a) The terms ``partnering'' and ``partnership'' used herein shall mean a relationship of open communication and close cooperation that involves both Government and Contractor personnel working together for the purpose of establishing a mutually beneficial, proactive, cooperative environment within which to achieve contract objectives and resolve issues and implementing actions as required.

  (b) Partnering will be a voluntary commitment mutually agreed upon by at least NASA and the prime contractor, and preferably the subcontractors and the A&E design contractor, if applicable. Sustained commitment to the process is essential to assure success of the relationship.

  (c) NASA intends to facilitate contract management by encouraging the foundation of a cohesive partnership with the Contractor, its subcontractors, the A&E design contractor, and NASA's contract management staff. This partnership will be structured to draw on the strengths of each organization to identify and achieve mutual objectives. The objectives are intended to complete the contract requirements within budget, on schedule, and in accordance with the plans and specifications.

  (d) To implement the partnership, it is anticipated that within 30 days of the Notice to Proceed the prime Contractor's key personnel, its subcontractors, the A&E design contractor, and NASA personnel will attend a partnership development and team building workshop. Follow-up team building workshops will be held periodically throughout the duration of the contract as agreed to by the Government and the Contractor.

  (e) Any cost with effectuating the partnership will be agreed to in advance by both parties and will be shared with no change in the contract price. The contractor's share of the costs are not recoverable under any other Government award.

(End of clause)

FR Doc. 98-22023Filed8-17-98; 8:45 amBILLING CODE 7510-01-P

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