PART 1850
EXTRAORDINARY
CONTRACTUAL ACTIONS
TABLE OF CONTENTS
SUBPART 1850.2 DELEGATION OF AND LIMITATIONS ON EXERCISE
OF AUTHORITY
1850.202 Contract
adjustment boards.
SUBPART 1850.3 CONTRACT ADJUSTMENTS
1850.305 Processing
cases.
1850.305-70 Submission of
request to the Contract Adjustment Board.
1850.306 Disposition.
1850.306-70 Implementation of
the Contract Adjustment Board's decision.
SUBPART 1850.4 RESIDUAL POWERS
1850.403 Special
procedures for unusually hazardous or nuclear risks.
1850.403-1 Indemnification
requests.
1850.403-170 Subcontractor
indemnification requests.
1850.403-2 Action on
indemnification requests.
1850.470 Lead NASA
installation.
PART 1850
EXTRAORDINARY CONTRACTUAL ACTIONS
1850.202
Contract adjustment boards.
14
CFR part 1209, subpart 3, Contract Adjustment Board, establishes the Contract
Adjustment Board (CAB) as the approving authority to consider and dispose of
requests from NASA contractors for extraordinary contractual actions.
Subpart 1850.3--Contract Adjustments
1850.305-70 Submission of request to the
Contract Adjustment Board.
(a) After
investigating the facts and issues relevant to the contractor's request, the
contracting officer shall forward the request to the Associate General Counsel
for General Law (Code GG), including in the forwarding letter--
(1) The
nature of the case;
(2) The
recommended disposition; and,
(3) If
contractual action is recommended, the contracting officer's opinion that the
action will facilitate the national defense.
(b)
The forwarding letter shall enclose the contractor's request, all supporting
material submitted by the contractor, and any material the contracting officer
has obtained while investigating the facts and issues relevant to the request.
Any classified information in the material forwarded shall be so identified.
(c)
Electronic submittal is preferred for unclassified material.
1850.306-70 Implementation of the Contract Adjustment
Board's decision.
(a) The
contracting officer shall take action authorized in the CAB's decision.
(b) Immediately
upon execution, including any required Headquarters approval, of a contract or
contract modification or amendment implementing the CAB decision, the
contracting officer shall forward a copy of the contractual document to the
Associate General Counsel for General Law (Code GG).
1850.403 Special procedures for unusually hazardous or nuclear risks.
1850.403-1 Indemnification requests.
(a) Contractor indemnification requests must
be submitted to the cognizant contracting officer for
the contract for which the indemnification clause is requested. Contractors shall submit a single request and
shall ensure that duplicate requests are not submitted by associate divisions,
subsidiaries, or central offices of the contractor.
(b) The contractor shall also provide evidence, such as a certificate of insurance or other customary proof of insurance, that such insurance is either in force or is available and will be in force during the indemnified period.
1850.403-170 Subcontractor indemnification requests.
Subcontractors
shall submit requests for indemnification to the prime contractor and through
higher tier subcontractor(s), as applicable. If the prime contractor agrees an
indemnity clause should be flowed down to the subcontractor, the prime
contractor shall forward its written request for subcontractor indemnification
to the cognizant contracting officer for approval in
accordance with FAR 50.403-1. The prime contractor's request shall
provide information responsive to 1850.403-1, FAR 50.403-1, and FAR
50.403-2(a)(1), (2), (4), (5) and (7). The agreed upon
definition of the unusually hazardous risk to be incorporated into the
subcontract shall be the same as that incorporated in the prime contract.
1850.403-2 Action on indemnification requests.
(a)
If recommending approval, the contracting officer shall forward the required
information to the Assistant Administrator
for Procurement (Code HS), along with the following:
(i) For contracts of five years duration or longer,
a determination, with supporting rationale, whether the indemnification
approval and insurance coverage and premiums should be reviewed for adequacy
and continued validity at points in time within the extended contract period.
(ii)
A recommended Memorandum of Decision. In addition to the applicable
requirements of FAR 50.306, the Memorandum of Decision shall
contain the following:
(A)
The specific definition of the unusually hazardous risk to which the
contractor is exposed in the performance of the contract(s);
(B)
A complete discussion of the contractor's financial protection program; and
(C)
The extent to, and conditions under, which indemnification is being approved
for subcontracts.
(d)
If approving subcontractor indemnification, the contracting officer shall
document the file with a memorandum for record addressing the items set forth
in FAR 50.403-2(a) and include an analysis of the
subcontractor's financial protection program. In performing this analysis, the
contracting officer shall take into consideration the availability, cost, terms
and conditions of insurance in relation to the unusually hazardous risk.
1850.470 Lead
NASA installation.
(a)
Contractors applying for indemnification shall determine which NASA
installation has the highest dollar amount of contracts for which
indemnification is requested. The indemnification request should be submitted
to the procurement officer for that installation, who will then designate a cognizant contracting officer. Contractors shall submit a
single request and ensure duplicate requests are not submitted by associate
divisions, subsidiaries, or central offices of the contractor.
(b)
The receiving installation will become the lead installation and will remain so
indefinitely. Lead installation designation may change to another installation
if the affected procurement officers agree to the change. Should a change occur
in the lead installation, all records related to indemnification of that
contractor shall be transferred to the gaining installation.