Subpart 6-Insurance of Industrial Facilities

10.600 Scope of Subpart. This Subpart sets forth NASA policy with respect to insurance of industrial facilities held by a contractor.

10.601 Responsibility for Liabilities to Third Persons. When industrial facilities are provided by the Government under a facilities contract or a lease, the contract or lease shall require that during the period of construction, installation, alteration, repair, or use, and at any other time as directed by the installation concerned, the contractor or lessee shall insure or otherwise provide approved security for liabilities to third persons (including employees of the contractor or lessee) in the same manner and to the same extent as required in 10.501.

10.602 Responsibility for Loss or Damage to Facilities.

10.602-1 Facilities Contracts. Facilities contracts shall provide that the contractor shall not include the cost of insurance in any contract except to the extent of insurance required or approved by NASA. If a facilities contract does not restrict the use of the facilities to work performed for the Government, provision shall be made that the contractor shall procure and maintain insurance as NASA may require against loss or damage to the industrial facilities (see 13.414).

NASA PROCUREMENT REGULATION

11.203

Supplies and Services for the Exclusive Use of the
United States...

11-2:2

11.402 11.403

Cost-Reimbursement Type Contracts..................................
Foreign Tax Exemption Clauses..

11-4:4

11-4:6

PART 11

TAXES

Subpart 1-Federal Excise Taxes

11.000 Scope of Part. This Part deals with Federal taxes imposed by the Internal Revenue Code upon certain supplies and services procured by NASA, exemptions from such Federal taxes, and policy for obtaining exemptions from State and local taxes. Except as otherwise indicated, references are to the Internal Revenue Code of 1954 (26 U.S.C.). (References to the Internal Revenue Code of 1939 are for convenience in disposing of cases to which the Internal Revenue Code of 1954 is not applicable.)

11.001 Resolution of Tax Problems.

(a) The problems presented in connection with the administration of the tax aspects of a contract or transaction are widely varied. The right to immunity, exemption, refund, credit, or drawback depends upon the nature of the tax, the particular tax law, the party sought to be taxed, the items being procured, and the provisions of the contract. These problems are essentially legal; therefore, when questions arise, contracting officers shall request the assistance of counsel.

(b) It is essential that uniform and consistent tax policies and procedures be maintained throughout NASA and that NASA effectively cooperate with other Government agencies on tax matters of mutual interest. Except as provided in 11.502-3(b), the General Counsel, NASA Headquarters, will represent NASA in all negotiations with Federal, State, or local authorities, for the purpose of determining the applicability of, or for obtaining exemption from, or refund of, any tax. Where the constitutional immunity of the United States from State or local taxation may reasonably be in issue, contracting officers should discourage contractors having cost-reimbursement type contracts or fixed-price type contracts containing a tax escalation clause from undertaking independent negotiations with taxing authorities pending approval as indicated above. The General Counsel shall keep the Assistant Administrator for Procurement fully informed of the status of any such negotiations.

(c) Communications with the Department of Justice for representation or intervention in proceedings concerning taxes shall be made only by the General Counsel.

(d) Matters involving foreign taxes requiring the assistance of other executive departments shall be forwarded to the General Counsel for appropriate action.

(e) Tax problems which cannot be solved readily by reference to this Part shall be forwarded to the General Counsel through the field installation Office of General Counsel. The forwarding of tax problems to the General Counsel is particularly important where:

(i) the amount of tax actually or potentially involved is substantial;

(ii) the legal incidence of a tax appears to be upon the United States or its property, a specific exemption pertinent to the transaction appears to exist, or a State or local tax appears to have a direct effect upon a transaction in interstate commerce;

(iii) judicial or administrative action against a contractor is threatened; (iv) the imposition, or potential imposition, of a tax is the result of an amendment of a tax law or a change of position by the tax authorities; or (v) the possibility exists of obtaining refunds of taxes previously paid.

NASA PROCUREMENT REGULATION

11.001