more written estimates of the cost of repairs from competent persons if the property is repairable but has not been repaired.

Claims

(b) Specific classes of claims. of the following types shall also be accompanied with the specific and detailed evidence listed below:

(1) Theft, burglary, etc. A statement describing in detail the location where the loss occurred and the facts and circumstances surrounding the loss, including evidence of larceny, burglary or housebreaking, such as breaking and entering, capture of the thief, recovery of part of the stolen goods, police report, etc. In addition the statement must contain evidence that the claimant exercised due care in protecting his property prior to the loss. Attention will be given to the degree of care normally exercised in the locale of the loss due to any unusual risks involved.

(2) Transportation losses. A copy of orders authorizing the travel, transportation or shipment, or a certificate explaining the absence of such orders, and stating their substance; all bills of lading and inventories of property shipped; and a statement indicating the condition of the property when turned over to the carrier and when received from the carrier.

§ 1204.208

Recovery from carriers, insurers, and other third parties.

(a) General. NASA is not an insurer and does not underwrite all personal property losses that an employee may sustain. Employees are encouraged to carry private insurance to the maximum extent practicable to avoid large losses or losses which may not be recoverable from NASA. The procedures set forth in this section are designed to enable the claimant to obtain the maximum amount of compensation for his loss or damage. Failure of the claimant to comply with these procedures may reduce or preclude payment of his claim under this Subpart 2.

(b) Demand on carrier, contractor, warehouseman, or insurer. When it appears that property has been damaged or lost under circumstances in which a carrier, warehouseman, contractor, or insurer may be responsible, the claimant shall make a written demand on such party, either befor or after submitting a claim against NASA. The cognizant counsel, if requested, will assist in making demand on the third party. No such

demand need be made if, in the opinion of the appropriate counsel, it would be impracticable or any recovery would be insignificant, or if circumstances preclude the claimant from making timely demand.

(c) Action subsequent to demand. A copy of the demand and of any related correspondence shall be submitted to counsel. If the carrier, insurer, or other third party offers a settlement which is less than the amount of the demand, the claimant shall consult with counsel before accepting the amount so offered. The claimant shall also notify counsel promptly of any other action by such third party, including settlement, partial settlement, or denial of liability.

(d) Application of recovery. When the amount recovered from a carrier, insurer, or other third party is greater than or equal to the claimant's total loss as determined under this Subpart 2, no compensation is allowable under this Subpart 2. When the amount recovered is less than such total loss, the allowable amount is determined by deducting the recovery from the amount of such total loss. For the purpose of this paragraph (d) the claimant's total loss is to be determined without regard to the $6,500 maximum set forth in § 1204.202. However, if the resulting amount, after making this deduction, exceeds $6,500, the claimant will be allowed only $6,500.

(e) Transfer of rights. The claimant shall assign to the United States, to the extent of any payment on his claim accepted by him, all his right, title, and interest in any claim he may have against any carrier, insurer, or other party arising out of the accident or incident on which his claim against the United States is based. He shall also, upon request, furnish such evidence and other cooperation as may be required to enable the United States to enforce the claim. After payment on his claim by the United States, the claimant shall, upon receipt of any payment from a carrier, insurer, or other party, notify counsel and pay the proceeds to the United States to the extent required under the provisions of paragraph (d) of this section.

§ 1204.209 Computation of allowance.

(a) The amount allowed for damage to or loss of any item of property may not exceed the cost of the item (either the price paid in cash or property, or the value at the time of acquisition if not

acquired by purchase or exchange); and there will be no allowance for replacement cost or for appreciation in the value of the property. Subject to these limitations, the amount allowable is either:

(1) The depreciated value, immediately prior to the loss or damage, of property lost or damaged beyond economical repair, less any salvage value;

or

(2) The reasonable cost of repairs, when property is economically repairable, provided that the cost of repairs does not exceed the amount allowable under subparagraph (1) of this paragraph.

(b) Depreciation in value is determined by considering the type of article involved, its cost, its condition when damaged or lost, and the time elapsed between the date of acquisition and the date of damage or loss.

(c) To the extent that he deems it appropriate, the General Counsel is authorized to issue guides for determining the allowable compensation for specific articles, the rates of depreciation to be applied to certain articles, and the maximum amounts allowable for certain types and quantities of property.

(d) Replacement of lost or damaged property may be made in kind whenever appropriate.

The

(a) Settlement officials. (1) General Counsel and the Deputy General Counsel are authorized to settle (consider, ascertain, adjust, determine, and dispose of, whether by full or partial allowance or disallowance) any claim under this Subpart 2.

(2) The Chief Counsel assigned to a Field Installation is authorized to settle any claim under this Subpart 2, not exceeding $1,000, submitted by employees under the jurisdiction of that Installation. In addition, the Chief Counsel, Langley Research Center, is authorized to settle any such claim submitted by employees at the Wallops Station and the Chief Counsel, Western Operations Office, is authorized to settle any such claim submitted by employees at the Flight Research Center, the Pacific Launch Operations Office, and the NASA Resident Office-JPL. Claims arising in the field for more than $1,000 shall be investigated by the Chief Counsel and forwarded, with his report and recommendation thereon,

to the General Counsel or the Deputy General Counsel for settlement.

(3) The General Counsel is authorized to designate counsel to settle claims for other field offices.

(b) Investigation of claims. The cognizant counsel shall conduct such investigation as may be appropriate in order to determine the validity of a claim. The services of the Inspections Division or the Safety Officer, Office of Administration, or other appropriate office may be utilized to assist in such investigation.

(c) Action by settlement official. (1) For each claim the cognizant counsel shall complete a report in duplicate on NASA Form 1204, and retain a claim file consisting of the original claim, his report, and any other relevant evidence or documents.

(2) When a claim is allowed in an amount acceptable to the claimant, the counsel shall prepare a "Voucher for Payment of Employees' Personal Property Claims" (NASA Form 1220), have it properly executed by the claimant, and forward it to the appropriate NASA fiscal or financial management office for payment, with a copy of the approved claim (NASA Form 1204).

(3) When a claim is disallowed, or is partially allowed in an amount unacceptable to the claimant, the counsel shall notify the claimant in writing of the action taken and the reasons therefor. If the claimant is not satisfied with the action taken, he may, within 60 days after receipt of such notice, request reconsideration of his claim and he may submit any new or additional evidence that he feels to be pertinent to his claim. If such a claim has been disallowed by the Chief Counsel of a Field Installation, the claimant may request such reconsideration by either the Chief Counsel or the General Counsel, or both.

(d) Final and conclusive. The settlement of a claim under this Subpart 2, whether by full or partial allowance or disallowance, is final and conclusive. § 1204.211

Annual reports to Congress. Public Law 88-558 provides that the head of each agency shall report once a year to Congress on claims settled under its authority, including in such report for each claim the name of the claimant, the amount claimed, and the amount paid. In order to comply with this requirement, the fiscal or financial management office at each Field Installation

shall, in January of each year, forward to the Office of Financial Management at Headquarters a report containing the information in this section for each claim settled at that Installation during the preceding calendar year; and the Office of Financial Management shall prepare an agency-wide report and forward it to the Office of Legislative Affairs for submission to the Congress.

Subpart 3-Tort Claims Regulations

AUTHORITY: The provisions of this Subpart 3 issued under 28 U.S.C. 2671-2680 and 42 U.S.C. 2473 (b) (13).

SOURCE: The provisions of this Subpart 3 appear at 29 F.R. 177, Jan. 8, 1964.

§ 1204.300 Scope of subpart.

(a) This subpart establishes procedures for the handling of lawsuits against NASA employees for property damage, or personal injury, including death, resulting from the operation of a motor vehicle by a NASA employee in the scope of his employment and designates NASA officials authorized to receive and process relevant documents in such cases.

(b) This subpart establishes procedures for the submission and settlement of claims against the United States Government for bodily injury, death and property damage or loss cognizable under the Federal Tort Claims Act (28 U.S.C. 2671-2680) or the National Aeronautics and Space Act of 1958 (42 U.S.C. 2473 (b) (13)) and designates NASA officials authorized to act upon such claims.

§ 1204.301

Lawsuits against NASA em. ployees arising out of their operation of motor vehicles in the course of their employment.

28 U.S.C. 2679, as amended September 21, 1961, provides that the Attorney General of the United States shall defend any civil action which is brought in any court against a Government employee for damage to property or for personal injury, including death, resulting from the operation of a motor vehicle by such Government employee while acting within the scope of his office or employment. In effect, this legislation is designed to protect an employee driving a motor vehicle on Government business by converting such a civil court action against the employee into an action against the United States, provided that the employee was acting within the

The following procedures shall be followed in the event that a civil action or proceeding is brought, in any court, against any employee of NASA (or against his estate), for damage to property, or for personal injury or death, resulting from the employee's operation of a motor vehicle while acting within the scope of his office or employment:

(a) After being served with process or pleadings in such an action, the employee (or his personal representative if the action is brought against his estate) shall immediately deliver all such process and pleadings (or an attested true copy thereof) together with a fully detailed report of the circumstances of the accident giving rise to the court action, to the following officials:

(1) The General Counsel of NASA insofar as actions against employees of NASA Headquarters are concerned; or

(2) The Chief Counsel of the NASA installation at which the employee is employed, insofar as actions against other than NASA Headquarters employees are concerned.

(b) Upon receipt of such process and pleadings, the General Counsel or the Chief Counsel of the NASA installation receiving the same shall furnish to the United States attorney for the district embracing the place where the action or proceeding is brought and the Chief of the Torts Section, Civil Division, Department of Justice, the following:

(1) Copies of all such process and pleadings in the action or proceeding, promptly upon receipt thereof; and

(2) A report containing a statement of the circumstances of the incident giving rise to the action, and all data bearing upon the question of whether the employee was acting within the scope of his office or employment with NASA at the time of the incident, at the earliest possible date, or within such time as shall be fixed by the United States Attorney upon request.

In addition, the Chief Counsels shall submit copies of all such process, pleadings, reports and other documents submitted by them to the United States Attorney to the General Counsel, NASA Headquarters, who is hereby designated

to receive all such documents on behalf of the Administrator, NASA.

§ 1204.303

Other claims-claims against the United States or the National Aeronautics and Space Administration.

Under the authority of 28 U.S.C. 26712680 and 42 U.S.C. 2473(b) (13), the National Aeronautics and Space Administration has authority, within specified limits, to settle claims for bodily injury, death and property damage, arising out of the activities of the National Aeronautics and Space Administration. Claims shall be submitted in accordance with the provisions of this subpart.

§ 1204.304 Claimant.

(a) If the property was insured and the insurer has a right of subrogation, in whole or in part, and if both the owner and the insurer desire to file a claim for their respective losses, they should join in one claim.

(b) Claims for bodily injury may be filed by the injured person or his agent or attorney.

(c) Claims for death may be filed by the personal representative of the decedent or by the administrator, executor, or guardian. When filed by an agent or attorney, the claim must show the title or capacity of the person representing the claimant and be accompanied with evidence of the appointment of such person as agent, legal representative, executor, administrator, guardian, or other fiduci

(a) General. The amount claimed on account of damage to or loss of property, or on account of bodily injury or death should, so far as possible, be substantiated by competent evidence. Supporting statements, estimates and the like should, if possible, be obtained from disinterested parties. All evidence should be submitted in duplicate. The original evidence or certified copies thereof should be attached to the original and copy of the claim.

(b) Personal injury or death. In support of claims for personal injury or death, the claimant should submit itemized bills for medical, hospital or burial expenses actually incurred; a statement from the claimant's or decedent's employer as to time and income lost from work; and a written report by the attending physician with respect to the nature and extent of treatment, the degree of disability, the period of hospitalization or incapacitation, and the prognosis as to future treatment, hospitalization, and other relevant matters.

(c) Damage to property. In support of claims for damage to property, the claimant should submit:

(1) An itemized receipt in the case of property which has been repaired.

(2) Itemized estimates of the cost of repairs from two reliable parties who specialize in such work, in the case of unrepaired property, or

(3) Corroborative statements from two reliable, qualified persons with respect to the cost, age of the property, and salvage value in the case where the property is not economically reparable. § 1204.308 Investigation of claims.

When a claim is received, the official designated in § 1204.312 shall conduct such investigation as may be appropriate for a determination of the validity of the claim. The services of an investigatory group or official at any NASA installation may be obtained to assist in such investigations.

1145), as appropriate. The properly prepared form will be referred to the appropriate NASA installation fiscal or financial management office.

§ 1204.310 Acceptance of award or settlement by claimant.

The acceptance by the claimant of an award, adjustment, or settlement is final and conclusive on the claimant, and constitutes a complete release of any claim against the United States and against the employee of the Government whose act or omission gave rise to the claim. § 1204.311 Attorney's fees.

As part of any award or settlement, reasonable attorney's fees may be allowed out of, but not in addition to, the amount of the award or settlement. If the award or settlement is $500 or more, the fee shall not exceed 10 percent of the amount of the award or settlement. § 1204.312

NASA officials authorized to settle tort claims.

The following NASA officials are authorized to consider, ascertain, adjust, determine, and settle claims within the limits and to the extent permitted by the provisions of 28 U.S.C. 2671-2680 and 42 U.S.C. 2473(b) (13):

(a) The General Counsel and Deputy General Counsel, NASA Headquarters, are authorized to consider, ascertain, adjust, determine, and settle any such claim.

(b) The Chief Counsel assigned to a NASA field installation is authorized to consider, ascertain, adjust, determine, and settle any such claim not exceeding $1,000 arising from the activities of that installation.

(c) In addition, authority to act on claims not exceeding $1,000 arising at:

(1) The Wallops Station is vested in the Chief Counsel, Langley Research Center.

(2) The Flight Research Center is vested in the Chief Counsel, Western Operations Office.

Subpart 4-Small Business Policy

AUTHORITY: The provisions of this Subpart 4 issued under 28 U.S.C. 2671-2680 and 42 U.S.C. 2473.

SOURCE: The provisions of this Subpart 4 appear at 24 F.R. 6086, July 30, 1959. § 1204.400 Scope of subpart.

This subpart establishes the small business policy and program of the Na

(a) Consistent with the requirements of the Small Business Act (15 U.S.C. 631650) and the National Aeronautics and Space Act of 1958 (42 U.S.C. 2473 (b) (5)), it is the policy of NASA to place a fair proportion of its total purchases and contracts with small business concerns.

(b) In carrying out the NASA procurement program, the primary consideration shall be that of securing contract performance, including obtaining deliveries of required items or services at the time, in the quantity and of the quality prescribed. In the area of research and development contracts, the general policy of NASA is to award such contracts to those organizations determined by responsible personnel to have a high degree of competence in the specific branch of science or technology required for the successful conduct of the work. It is in the interest of the civilian space program that the number of firms engaged in research and development work for NASA be expanded and that there be an increase in the extent of participation in such work by competent small business firms.

§ 1204.402 Responsibility.

§ 1204.402-1 Division of Procurement and Supply, NASA Headquarters. The Director of Procurement and Supply, NASA Headquarters, is responsible for the development, supervision, and coordination of the NASA Small Business Program. A senior member serves on the Director's staff as Advisor on Small Business, with responsibility for formulating policies and procedures relating to small business, and representing the Director before other Government agencies on matters primarily affecting small business.

§ 1204.402-2 NASA field installations.

The head of each NASA field installation will designate a qualified individual in the procurement office as a "small business specialist," to provide a central point of contact to which small business concerns may direct inquiries concerning participation in the NASA procurement program, or secure assistance in submitting bids or proposals as well as performance of contracts. Where the head of a field installation considers that the