[Federal Register Volume 67, Number 34 (Wednesday, February 20, 2002)]
[Rules and Regulations]
[Pages 7617-7618]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-4077]


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NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Parts 1816 and 1852

RIN 2700-AC33


Major Breach of Safety or Security

AGENCY: National Aeronautics and Space Administration (NASA).

ACTION: Final rule.

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SUMMARY: This final rule amends the NASA FAR Supplement (NFS) by 
revising the Major Breach of Safety or Security clause to more clearly 
state that a major breach of security is an act or omission by the 
contractor that results in various outcomes (compromise of classified 
information; illegal technology transfer, etc.); to clarify that two of 
the outcomes are equipment or property damage from vandalism greater 
than $250,000, or theft greater than $250,000; and to correctly 
identify the Occupational Safety and Health Administration (OSHA). In 
addition, the guidance for award fee evaluation factors is revised to 
be consistent with the Major Breach of Safety or Security clause.

EFFECTIVE DATE: February 20, 2002.

FOR FURTHER INFORMATION CONTACT: Jeff Cullen, NASA Headquarters Office 
of Procurement, Contract Management Division (Code HK), Washington, DC 
20546; 202-358-1784; e-mail: [email protected].

SUPPLEMENTARY INFORMATION:

A. Background

    This final rule revises 1852.223-75, Major Breach of Safety or 
Security. The current major breach of security description contained in 
paragraph (b) of the clause includes outcomes that

[[Page 7618]]

may result in a major breach of security. However, the description does 
not clearly state that to be a major breach of security, the outcomes 
must result from an act or omission by the contractor. Revising the 
clause to clearly state that a major breach of security is an act or 
omission by the contractor that results in the various outcomes 
(compromise of classified information, illegal technology transfer, 
etc.) would make the major breach of security paragraph consistent with 
paragraph (a) (major breach of safety) of the clause.
    Additionally, the clause states that a major breach of security may 
arise from damage or loss greater than $250,000 to the Government, but 
it is not clear if this outcome is a standalone provision or if it 
applies to other outcomes in the clause (e.g., does a major breach 
occur if illegal technology transfer or theft occurs, and the result is 
damage or loss greater than $250,000 to the Government). This revision 
will remove the reference to damage or loss greater than $250,000 to 
the Government, but also clarify that two of the outcomes are equipment 
or property damage from vandalism greater than $250,000, or theft 
greater than $250,000.
    Also, the definition of major breach of safety or security in 
1816.405-274, Award Fee Evaluation Factors, will be revised to make it 
consistent with the revised 1852.223-75, Major Breach of Safety or 
Security definition.
    Lastly, OSHA is corrected to read as the Occupational Safety and 
Health Administration in 1852.223-75, Major Breach of Safety or 
Security clause and in 1816.405-274, Award Fee Evaluation Factors.

B. Regulatory Flexibility Act

    This final rule does not constitute a significant revision within 
the meaning of FAR 1.501 and Public Law 98-577, and publication for 
public comment is not required. However, NASA will consider comments 
from small entities concerning the affected NFS Parts 1816 and 1852 in 
accordance with 5 U.S.C. 610.

C. Paperwork Reduction Act

    The Paperwork Reduction Act does not apply because the changes to 
the NFS do not impose recordkeeping or information collection 
requirements, or collections of information from offerors, contractors, 
or members of the public which require the approval of the Office of 
Management and Budget under 44 U.S.C. 3501, et seq.

List of Subjects in 48 CFR Parts 1816 and 1852

    Government procurement.

Tom Luedtke,
 Assistant Administrator for Procurement.

    Accordingly, 48 CFR parts 1816 and 1852 are amended as follows:
    1. The authority citation for 48 CFR parts 1816 and 1852 continues 
to read as follows:

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

PART 1816--TYPES OF CONTRACTS

    2. In section 1816.405-274, revise paragraphs (c)(2) and (c)(3) to 
read as follows:


1816.405-274  Award fee evaluation factors.

* * * * *
    (c) * * *
    (2) A major breach of safety must be related directly to the work 
on the contract. A major breach of safety is an act or omission of the 
Contractor that consists of an accident, incident, or exposure 
resulting in a fatality or mission failure; or in damage to equipment 
or property equal to or greater than $1 million; or in any ``willful'' 
or ``repeat'' violation cited by the Occupational Safety and Health 
Administration (OSHA) or by a state agency operating under an OSHA 
approved plan.
    (3) A major breach of security may occur on or off Government 
installations, but must be directly related 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.
* * * * *

PART 1852--SOLICITATION PROVISIONS AND CONTRACT CLAUSES

    3. Section 1852.223-75 is amended by revising the clause date; 
deleting ``Occupational Health and Safety Administration'' and adding 
``Occupational Safety and Health Administration'' in its place in the 
last sentence of paragraph (a); and revising paragraph (b) to read as 
follows:


1852.223-75  Major Breach of Safety or Security.

* * * * *

Major Breach of Safety or Security (February 2002)

* * * * *
    (b) 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.
* * * * *

[FR Doc. 02-4077 Filed 2-19-02; 8:45 am]
BILLING CODE 7510-01-P