"Disputes" clause set forth in § 18-7.103-12, shall contain the "Payment of Interest on Contractors' Claims" clause set forth below:

PAYMENT OF INTEREST ON CONTRACTORS'
CLAIMS (AUGUST 1972)

(a) If an appeal is filed by the Contractor from a final decision of the Contracting Officer under the "Disputes" clause of this contract, denying a claim arising under the contract, simple interest on the amount of the claim finally determined owed by the Government shall be payable to the Contractor. Such interest shall be at the rate established by the Secretary of the Treasury pursuant to Public Law 92-41; 85 STAT 97 for the Renegotiation Board, from the date the Contractor furnishes to the Contracting Officer his written appeal pursuant to the "Disputes" clause of this contract, to the date of (1) a final judgment by a court of competent jurisdiction, or (ii) mailing to the Contractor of a supplemental agreement for execution either confirming completed negotiations between the parties or carrying out a decision of a Board of Contract Appeals.

(b) Notwithstanding (a) above, (i) interest shall be applied only from the date payment was due, if such date is later than the filing of appeal; and (ii) interest shall not be paid for any period of time that the Contracting Officer determines the Contractor has unduly delayed in pursuing his remedies before a Board of Contract Appeals or a court of competent jurisdiction.

[39 FR 13075, Apr. 11, 1974]

§ 18-1.350 Nondiscrimination clauseGovernment leases.

§ 18-1.350-1 Policy.

It is NASA policy to include a "Facilities Nondiscrimination" clause in leases on which NASA is the lessee. This policy has been adopted because Federal employees belonging to minority groups and other members of minority groups doing business with the Federal Government in some parts of the country have been denied the use of public facilities located in buildings where the Government leases office space.

§ 18-1.350-2 Use of clause.

The following "Facilities Nondiscrimination" clause shall be incorporated in all future leases where (a) the total rental is in excess of $10,000 per year, or (b) the total rental under the new lease, combined with the total rental under all other NASA leases of space in the same building, exceeds $10,000 per year. FACILITIES NONDISCRIMINATION (MARCH 1969) (1) As used in this clause, the term "facility" means stores, shops, restaurants, cafe

terias, restrooms, and any other facility of a public nature in the building in which the space covered by this lease is located.

(2) The lessor agrees that he will not discriminate by segregation or otherwise against any person or persons because of race, color, religion, or national origin in furnishing, or by refusing to furnish, to such person or persons the use of any facility, including any and all services, privileges, accommodations, and activities provided thereby. Nothing herein shall require the furnishing to the general public of the use of any facility customarily furnished by the lessor solely to tenants, their employees, customers, patients, clients, guests, and invitees.

(3) It is agreed that the lessor's noncompliance with the provisions of this clause shall constitute a material breach of this lease. In the event of such noncompliance, the Government may take appropriate action to enforce compliance, may terminate this lease, or may pursue such other remedies as may be provided by law. In the event of termination, the lessor shall be liable for all excess costs of the Government in acquiring substitute space, including but not limited to the cost of moving to such space. Substitute space shall be obtained in as close proximity. to the lessor's building as is feasible and moving costs will be limited to the actual expenses thereof as incurred.

(4) It is agreed that from and after the date hereof the lessor will, at such time as any agreement is to be entered into or a concession is to be permitted to operate, include or require the inclusion of, the foregoing provisions of this clause in every such agreement or concession pursuant to which any person other than the lessor operates or has the right to operate any facility. Nothing herein contained, however, shall be deemed to require the lessor to include or require the inclusion of the foregoing provisions of this clause in any existing agreement or concession arrangement or one in which the contracting party other than the lessor has the unilateral right to renew or extend the agreement or arrangement, until the expiration of the existing agreement or arrangement and the unilateral right to renew or extend. The lessor also agrees that he will take any and all lawful actions as expeditiously as possible, with respect to any such agreement as NASA may direct as a means of enforcing the intent of this clause, including, but not limited to, termination of the agreement or concession and institution of court action.

§ 18-1.350-3 Lease amendments and renewals.

(a) Prior to executing any amendment to a lease or exercising a lease renewal option, where the total rental exceeds $10,000 per year, the lessor shall be requested to enter into a supplemental agreement to incorporate in the lease as part of the rental consideration, the

"Facilities Nondiscrimination" clause set forth in § 18-1.350-2.

(b) The "Facilities Nondiscrimination" clause shall also be incorporated when the total aggregate rental of multiple NASA leases in a building is in excess of $10,000 per year.

(c) If agreement cannot be reached, the matter shall be submitted to the Director of Procurement, NASA Headquarters, with the recommendations of the head of the installation, at least 30 days prior to the date on which the amendment is to be executed or the notice of renewal must be issued.

[37 FR 14920, July 26, 1972]

§ 18-1.350-4 Invitation for bids or requests for proposals involving leases. The Facilities Nondiscrimination clause, as set forth in § 18-1.350-2, shall be preceded by a paragraph substantially as follows, in all invitations for bids or requests for proposals involving leases:

If the total rental under this lease exceeds $10,000 per year, or if the total rental under this lease combined with the total rental under all other NASA leases of space in the building in which the space covered by this lease is located exceeds $10,000 per year, the lessor agrees to comply with the following provisions: (August 1963)

§ 18-1.351 Procurement of potentially hazardous items.

(a) Many of NASA's procurements involve items which are potentially hazardous; e.g., squibs used in initiating rocket motors. In order to minimize personal injury and property damage, it is the general policy of NASA to acquire detailed design information and drawings for potentially hazardous items for the benefit of users of the equipment on NASA contracts.

(b) Any invitation for bids or request for proposals involving the procurement of potentially hazardous items shall contain as a line item, and the resulting contract shall contain as a line item of the Schedule, a requirement for the contractor or subcontractor to furnish complete design information and drawings showing all details of construction, including materials, for those items or components which are designated as potentially hazardous. NASA has designated the following as "potentially hazardous": Electrosensitive initiating devices (squibs).

(c) The invitation for bids or request for proposals and the contract shall also contain:

(1) Appropriate provisions concerning rights to use the design information, data, etc., in accordance with § 18-9.20452, and

(2) The following clause:

POTENTIALLY HAZARDOUS ITEMS
(NOVEMBER 1964)

(a) The Contractor agrees to furnish complete design information and drawings showing all details of construction, including materials, for the items or components which are designated in the Schedule of this contract as potentially hazardous to employees and subcontractors who are to perform any work in connection with installing such items or components in combination with other equipment, or in testing such items or components either alone or in combination with other components, items or equipment, or in handling such items or components; and to inform such employees or subcontractors of the potentially hazardous nature of such items or components; before requesting or directing the performance of such work.

(b) The Contractor shall include this clause including this paragraph (b) in each subcontract he awards under the contract which calls for the manufacture or handling of the items or components designated in paragraph (a) as potentially hazardous. § 18-1.352 Special considerations in research and development contracts. Research and development contracts shall, when source selection has been substantially predicated upon the possession by a given contractor of special capabilities, as represented by either key personnel or facilities, contain substantially the following clause setting forth the designated personnel and facilities: KEY PERSONNEL AND FACILITIES (JUNE 1967)

The personnel and/or facilities listed below (or as specified in the schedule of this contract) are considered to be essential to the work being performed hereunder. Prior to diverting any of the specified individuals or facilities to other programs the Contractor shall notify the Contracting Officer reasonably in advance and shall submit justification (including proposed substitutions) in sufficient detail to permit evaluation of the impact on the program. No diversion shall be made by the Contractor without the written consent of the Contracting Officer: Provided, That the Contracting Officer may ratify in writing such diversion and such ratification shall constitute the consent of the Contracting Officer required by this clause. The personnel and/or facilities listed below (or as specified in the Schedule of this contract) may, with the consent of the Contracting parties, be amended from time to

time during the course of the contract to either add or delete personnel and/or facilities, as appropriate.

§ 18-1.353 Construction contracts- -disclosure of Government estimate.

(a) Except as provided in paragraph (c) of this section, in contracting for construction, access to or disclosure of information concerning the Government estimate shall be limited to Government personnel whose official duties require knowledge of the estimate.

(b) If the nature of the information contained in the Government estimate requires security classification, it shall be handled in accordance with applicable security regulations.

(c) When the nature of the information contained in the Government estimate does not require security classification, access to or disclosure of information concerning the Government estimate shall be furnished in accordance with the following:

(1) If the procurement is to be made by means of formal advertising, a copy of the Government estimate shall be sealed and kept locked with the bids until bid opening. Immediately after the bids have been opened, read, and recorded, the estimate shall be opened, read, and recorded in the same manner as the bids.

(2) In the case of a negotiated pru curement, after the award has been made, the Government estimate may be furnished to individuals or firms upon their request.

§ 18-1.354 Procurements requiring immediate "on call" contractor performance.

(a) Frequently it becomes essential to the needs of NASA to contract for certain services which require immediate performance by a contractor after a minimum prior notice to proceed. Typical of such requirements are contracts for engineering services; maintenance, repair or overhaul of specialized equipment; and printing or reproduction and data processing services to be furnished on a "call basis" where time is of the essence to meet priority requirements.

(b) When soliciting prospective contractors to perform services of this nature, the NASA policy of obtaining competition to the maximum practicable extent will be observed. Geographic limitations imposed on prospective contrac

tors are apt to appear arbitrary to the business community and therefore are proper only in those cases where such limitations are demonstrably justifiable. Even in those circumstances, however, no firm desiring to compete for the procurement shall be denied the opportunity to do so, merely because it is located outside the geographic area. Such firms will be permitted to submit bids or proposals and will be considered for award, if otherwise qualified, provided they can substantiate their capability to establish a facility in a location which complies with any such required geographical limitation.

(c) A preferred method of obtaining services or supplies, which are required on a prompt response basis, is by clearly setting forth in the request for proposals or invitation for bids such requirement in terms of maximum time which may elapse between placement of the "order” or "call" and delivery date. Such time limitations, when required by the nature of the procurement, will normally meet the needs of NASA for prompt delivery without introducing any unnecessarily restrictive criteria on the competitive field of prospective contractors.

(d) Invitations for bid or requests for proposal which contemplate either a geographical area or time of performance limitation will be reviewed and approved by the Procurement Officer, or his designee, prior to distribution.

§ 18-1.355 Civil Rights Act of 1964— nondiscrimination in federally assisted programs.

(a) Section 602 of the Civil Rights Act of 1964 (Public Law 88-352; 42 U.S.C. 2000d-1) provides that no person in the United States shall on the ground of race, color, or national origin, be excluded from participation in, be denied the benefits of, or be otherwise subjected to discrimination under any program or activity receiving Federal financial assistance. The Act also requires that each Government agency, which is empowered to extend such financial assistance, shall issue rules or regulations effectuating title VI (sections 601-605) with respect to financial assistance programs or activities administered by the agency. NASA's Civil Rights Regulation is published in the FEDERAL REGISTER of January 9, 1965, 30 F.R. 301-305, 14 CFR 1250.

(b) Contracts with nonprofit institutions of higher education or with non

profit organizations whose primary purpose is the conduct of scientific research, where title to equipment purchased with funds under such contracts may be vested in such institutions or organizations under the authority of section 2 of Public Law 85-934 (42 U.S.C. 1892), are within the purview of title VI of the Civil Rights Act.

(c) No contract of the type described in (b) above shall be entered into unless and until an "Assurance of Compliance" (NASA Form 1206) has been obtained, or until proceedings pursuant to section 1250.107(c) of the NASA Civil Rights Regulation have been conducted and terminated in favor of the prospective contractor. NASA shall not be obligated to provide assistance in such a case during the pendency of any administrative proceedings under the NASA Civil Rights Regulation.

(d) Requests for proposals subject to Title VI shall include a copy of the "Assurance of Compliance" (NASA Form 1206) and shall require the proposer either to execute such an assurance as part of his proposal or to identify and refer to a prescribed assurance previously submitted. All assurances will be forwarded promptly to the Headquarters Contracts Division, NASA Headquarters (Code DHC). Copies of the assurance should be retained for the contract file. (e) If a proposal (including unsolicited proposals) relating to a program subject to title VI does not contain or refer to a prescribed assurance and it appears that the proposer is unaware of the requirement for the assurance, prior to entering into any contract with the proposer, the proposer shall be furnished a copy of the desired form of assurance and shall be informed of the requirements of the NASA Civil Rights Regulation and this § 18-1.355.

(f) Further implementation, setting forth procedures and guidance, and assigning responsibilities to NASA officials, is contained in NASA Management Instruction 2090.1, "Civil Rights Act-Nondiscrimination in Federal Assisted Programs of NASA."

[35 F.R. 18803, Dec. 11, 1970, as amended at 36 F.R. 21455, Nov. 10, 1971]

§ 18-1.356 Procurement request.

(a) Procurement requests will be prepared and submitted to the procurement office in accordance with the provisions of NASA Management Instruction

5101.12, "Policy and Procedures Concerning Procurement Requests."

(b) Except in unusual circumstances, the procurement office will not issue invitations for bids or requests for proposals until an approved procurement request, containing a certification that funds are available, has been received. However, the procurement office may take all necessary actions up to the point of contract obligation prior to the receipt of the approved procurement request certifying that funds are available when:

(1) Such action is necessary to meet critical program schedules;

(2) It has been established that program authority has been issued and that funds to cover the procurement will be available prior to the date set for contract award or contract modification; and

(3) The Procurement Officer authorizes such action prior to the issuance of the invitation for bids or request for proposals.

(c) The procurement request shall be assigned within the procurement office to a negotiator who will be responsible to the contracting officer for conducting the business aspects of the transaction. The negotiator will review the request to insure that it complies with NASA Management Instruction 5101.12, this Regulation, and that the information contained in the request is in sufficient detail to prepare the invitation for bids or the request for proposals. Uncertain requirements or inconsistencies in the procurement request will be discussed with the initiator of the request and clarified prior to the initiation of procurement action.

§ 18-1.357 Procurement of liquid hydrogen.

(a) To ensure that adequate supplies of liquid hydrogen are readily available to meet current and future program requirements, NASA has established contractual arrangements with primary supply sources located in Louisiana and in California. These contracts will be used to the maximum extent practicable in supplying both in-house and contractor requirements for liquid hydrogen.

(b) Responsibility for administration of the sources and management of production and distribution operations have been vested in:

(1) The Marshall Space Flight Center for the Louisiana source, and

(2) The NASA Pasadena Office, for the California source.

(c) Requests for furnishing liquid hydrogen will be submitted to either the Marshall Space Flight Center or to the NASA Pasadena Office. The supply source used will be the one located nearest the receiving destination. [37 FR 14920, July 26, 1972]

§ 18-1.358 Contractor financing by letter of credit.

Any contract with a nonprofit institution (including an educational institution) which, in accordance with the policy established in FMM 9280-1, is to provide advance funding by the Letter of Credit procedure, shall contain the clause set forth below:

CONTRACTOR FINANCING BY LETTER OF CREDIT (MARCH 1970)

(a) The advance funds will be provided in accordance with the letter of credit procedure set forth in paragraphs 9280-1 through 9280-8 of the NASA Financial Management Manual. The Contractor shall use these procedures to obtain advance funds for allowable costs under this contract.

(b) In accordance with those procedures, a Letter of Credit will be issued in an amount determined by the Contracting Officer based on the needs of the Contractor. Subsequent amendments to the Letter of Credit will be on the basis of: (1) Quarterly NASA Form 1031 reports submitted by the Contractor and as approved by the Contracting Officer, and (11) amendments to the contract. In no instance will the advance funds provided by the letter of credit procedure exceed the amount of the contract as from time to time amended, less the amount of withholding provided therein.

(c) The funds provided by the letter of credit procedure shall be used by the Contractor solely for the purposes of making payments for items of allowable costs as defined in this contract, or to reimburse the Contractor for such items of allowable cost and for making payments for such other costs as the Contracting Officer otherwise has authority to approve, and does approve in writing.

(d) The Contractor may draw on the Letter of Credit using payment vouchers as follows:

(1) Payment vouchers may be executed only for the purpose of obtaining funds in the minimum amounts necessary for the following purposes: (1) Making payments for items of allowable costs as defined in this contract; (11) reimbursing the Contractor for such items of allowable costs; and (111) for making payments for such other costs as the Contracting Officer otherwise has authority to approve, and does approve in writing; and

the funds so obtained may be used only for such purposes.

(2) Payment vouchers drawn should be timed to be in accordance with the actual cash requirements of the contractor in carrying out the purpose of the contract.

(e) NASA Form 1031 shall be submitted by the 20th of the month following the quarter being reported.

(f) The Contractor may at any time repay all or any part of the funds or credit obtained under the Letter of Credit. When so requested in writing by the Contracting Officer, the Contractor shall repay to the Government such part of the unliquidated balance of advance payments as shall, in the opinion of the Contracting Officer, be in excess of the Contractor's current needs or in excess of the contract price or estimated cost as revised from time to time.

(g) If upon completion or termination of this contract all amounts obtained by the Contractor under the Letter of Credit have not been fully liquidated by authorized charges under the contract, the balance thereof shall be deducted from any sums otherwise due or which may be due to the Contractor from the Government, and any excess funds shall be repaid by the Contractor to the Government upon demand.

(h) Notwithstanding any other provisions of this contract, the Contractor shall not transfer, pledge, or otherwise assign this contract or any interest therein, or any claim arising thereunder, to any party or parties, bank, trust company, or other financing institution.

(1) Any and all advance payments made under this contract shall be secured by a lien in favor of the Government, paramount to all other liens, upon the supplies or other things covered by this contract and on all material and other property acquired for or allocated to the performance of this contract, except to the extent that the Government by virtue of any other provision of this contract, or otherwise, shall have valid title to such supplies, materials, or other property as against other creditors of the Contractor. The Contractor shall identify by marking or segregation all property which is subject to lien in favor of the Government by virtue of any provision of this contract in such a way as to indicate that it is suject to such lien and that it has been acquired for or allocated to the performance of this contract. If for any reason such supplies, materials, or other property are not identified by marking or segregation, the Government shall be deemed to have a lien to the extent of the Government's interest under this contract on any mass of property with which such supplies, materials, or other property are commingled. The Contractor shall maintain adequate accounting control over such property on his books and records. If at any time during the progress of the work on the contract it becomes necessary to deliver any item or items and materials upon which the Government has a lien as aforesaid to a third person, the