warehousemen, distributors, or manufacturers of aluminum products or other items containing aluminum in any form.

(b) Except as provided in (c) below, the Contractor (or subcontractor or supplier, where applicable) shall purchase from the General Services Administration (GSA) a quantity of aluminum pig or ingot equal in weight to the gross weight of aluminum products constituting, or used in the production of, the items to be delivered under this contract. Such purchase shall be in accordance with the terms and conditions of sale prescribed therefor by GSA. Each order placed with GSA pursuant to this clause shall state that it is placed in accordance therewith and shall be sent to:

Director, Industry Materials Division, Defense Materials Service, General Services Administration, Washington, D.C. 20405. Aluminum purchased pursuant to this clause may be used in any manner the Contractor desires and need not be earmarked in any way after delivery to the Contractor, nor physically incorporated in the items to be delivered hereunder.

(c) To the extent the Contractor (or subcontractor or supplier, where applicable) places subcontracts or purchase orders for aluminum products or for items other than aluminum products and containing aluminum in any form, he is not required with respect to such subcontracts or purchase orders to purchase aluminum from the GSA. However, he agrees to incorporate this clause, except paragraph (d):

(1) In any such subcontract or purchase order for aluminum products in the total amount of $500 or more; or

(11) In any such subcontract or purchase order in the total amount of $25,000 or more for any items containing aluminum in any form where the quantity of aluminum products used in the production of such items is estimated to be 10,000 pounds or more.

(d) The Contractor shall furnish to the GSA, calendar quarter summaries (within 30 days following the close of the applicable quarter) of all subcontracts and purchase orders placed by him pursuant to (c) (i) above that will identify (1) each aluminum product supplier involved, (ii) the quantity (by weight) of aluminum products, and (iii) the contract number applicable to specific quantities. The requirements of this paragraph (d) are applicable only to the prime Contractor and not to any subcontractor or other supplier hereunder. This reporting requirement has been approved by the Bureau of the Budget in accordance with the Federal Reports Act of 1942.

(e) The requirements of this clause are not intended to preclude basic agreements or other arrangements between the parties to any contracts (subcontracts or purchase orders) subject to this clause that will permit reference in such contracts to the applicability of the requirements of this clause, without the need for physically incorporating

this clause in its entirety in each affected subcontract or purchase order.

(f) In placing subcontracts and purchase orders subject to the clause, the Contractor and all subcontractors and suppliers are authorized and encouraged to consolidate aluminum product purchases hereunder with other rated order purchases (ACM, DO, or DX) and other identifiable Government orders so as to apply the requirements of this clause to the total purchase. Otherwise, it is required either that aluminum product purchases subject to this clause be separately made, or, if consolidated with other aluminum product purchases, that the quantities (by weights) of aluminum products subject to this clause be separately set forth in the purchase document and identified as subject to this clause.

(g) Required purchases of aluminum from GSA by Contractors, subcontractors, or suppliers, shall be made within 90 days from the date (1) of final delivery pursuant to a contract, subcontract, or purchase order containing the requirements of this clause, or (11) when the Contractor, subcontractor, or supplier, has completed deliveries of aluminum products aggregating 100,000 pounds, whichever is earlier: Provided, however, That any Contractor, subcontractor, or supplier, may defer required purchases of aluminum for the purpose of consolidating purchases to meet the requirement of two or more contracts, subcontracts, or purchase orders containing this clause until 90 days after the aggregate purchase requirements of such contracts, subcontracts, or purchase orders equal the minimum order quantities established by GSA (approximately 10,000 pounds or more). Successive consolidated purchases thereafter may be made at any time within 90-day intervals. The 90-day limitations may be extended upon approval in writing by the GSA.

(h) Certain producers of aluminum have entered into contracts with GSA effective as of November 1965 under which they have made long term commitments to purchase certain minimum and maximum quantities of aluminum from that Agency. The obligations of such producers under this clause shall be governed by the provisions of those contracts to the extent of any inconsistency.

(i) All purchases made pursuant to this clause, other than from GSA, which are rated (ACM, DO, or DX) in accordance with DMS Regulation 1, NPA Order M-5A and BDSA Regulation 2, and are subject to the provisions of those regulations concerning the maintenance of records, rights of inspection and audit, and the penalty provisions contained therein for willful noncompliance. § 18-1.327-3

Construction.

The clause contained in § 18-1.327-2 shall be modified by deletion of paragraph (c) thereof and substitution of the following paragraph in all contracts for construction:

(c) To the extent the Contractor or subcontractor or supplier, where applicable places subcontracts or purchase orders for aluminum products, or for items other than aluminum products and containing aluminum in any form, or for construction where the subcontractor is to furnish materials containing aluminum in any form, he is not required with respect to such subcontracts or purchase orders to purchase aluminum from the GSA, However, he agrees to incorporate this clause, except paragraph (d):

(1) In any such subcontract or purchase order for aluminum products in the total amount of $500 or more; or

(ii) In any such subcontract or purchase order in the total amount of $25,000 or more for any items containing aluminum in any form where the quantity of aluminum products used in the production of such items is estimated to be 10,000 pounds or more; or (iii) Construction, where the materials are to be supplied by the subcontractor and the total value of such materials containing aluminum (in any form) is estimated to be $25,000 or more, and where the quantity, of aluminum products used in the production of such items is estimated to be 10,000 pounds

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 (AUGUST 1963) (1) As used in this clause, the term "facility" means stores, shops, restaurants, cafeterias, 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, creed, color, 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 buildings 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.

(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 with the recommendations of the Director 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.

§ 18-1.350-4 Invitation for bids or request 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)

§ 18-1.350-5 Deviations.

Any proposed deletions or changes in the foregoing provisions required by this section shall be processed as deviations in accordance with § 18-1.109.

§ 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 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 (SEPTEMBER 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-dis

closure 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 procurement, 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 contractors are apt to appear arbitrary to the business community and therefore are proper only in those cases where such Hmitations 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 (see § 18-1.903-1(c)).

(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. 2000 d-1) requires that each Government agency which is empowered to extend Federal financial assistance shall issue rules or regulations effectuating Title VI (sec. 601-605) of the Act with respect to the Federal financial assistance programs or activities administered by the agency. NASA's Regulation is published in the FEDERAL REGISTER of January 9, 1965 (30 F.R. 301-305, 14 CFR Part 1250). (b) The following NASA Grants and Contracts are within the purview of Title VI of the Act:

(1) Grants made under the authority of Public Law 85-934, approved September 6, 1958 (42 U.S.C. 1891-1893).

(2) Contracts with nonprofit institutions of higher education or with nonprofit organizations whose primary purpose is the conduct of scientific research wherein 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, approved September 6, 1958 (42 U.S.C. 1892).

(3) Training grants made under the authority of the National Aeronautics and Space Act of 1958, as amended (42 U.S.C. 2451-2460, 2472-2473).

(4) Facilities grants made under authority in annual NASA authorization and appropriation acts.

(c) Further implementation, setting forth procedures and guidance, and assigning responsibilities to NASA officials, is contained in NASA Management Instruction 2090.1. For requirements for obtaining an Assurance of Compliance (NASA Form 1206), see §§ 18-3.501(e) and 18-4.5103(c).

§ 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.

(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 ensure that it complies with NASA Management Instruction 5101.12, this chapter, 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 at Michoud, La., and Sacramento, Calif. 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 sources.

(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.

[32 F.R. 17002, Dec. 2, 1967, as amended at 33 F.R. 17950, Dec. 4, 1968]

§ 18-1.358 Funding by letter of credit.

Any contract with a nonprofit institution (including an educational institution) which, in accordance with the policy established in FMM 9280, is to provide for letter of credit funding and the use of a special bank account, shall contain the clause set forth in § 181.358-1. When deemed desirable, this clause may be modified to give the Government security other than that provided therein. The form of "Agreement for Special Bank Account," set forth in § 18-1.358-2 shall be used to establish the special bank account to cover funds provided by Letter of Credit.

§ 18-1.358-1 Contractor financing by letter of credit.

Except as provided in § 18-1.358, the following clause shall be used when a contract is to provide for advance funding by the Letter of Credit Method. CONTRACTOR FINANCING BY LETTER OF CREDIT (MARCH 1967)

(a) The letter of credit procedures set forth in paragraphs 9280-1 through 9280-8 of the NASA Financial Management Manual