June 13, 2000
USE OF "OBSERVANCE OF LEGAL HOLIDAYS" CLAUSE
PURPOSE: To clarify the use of Alternates I and II to the clause.
BACKGROUND: NFS 1852.242-72, Observance of Legal Holidays, advises the contractor of the regular Government holidays. Alternate I of the clause notifies the contractor that it will not have access to the NASA installation during the specified holidays. Alternate II provides that when administrative leave is granted to Government employees because of emergency circumstances, then contractor employees should also be dismissed. The prescription for use of the basic clause and its alternates is at 1842.7001.
Until 1998, the two alternates were linked, so that Alternate II could not be used without Alternate I. PN 97-12, dated June 16, 1998, removed this linkage, allowing the two alternates to be used independently.
GUIDANCE: It is very important that contracts with on-site performance requirements either include or not include Alternate I, depending on whether or not the on-site contractor employees can work without the presence of the Government work force, as on an established Government holiday or other "special" Government holiday. Alternate II should be included in most contracts, to inform the contractor about dismissing its employees in the event of emergencies such as extreme weather conditions and power outages.
For those contracts where work can be performed without a Government presence, Alternate I should not be in the contract, and the contractor's holiday schedule should be determined by its own holiday policies. Alternate I, which directs the contractor not to work on Government holidays, should be used only for on-site contracts where work cannot proceed effectively without the presence of the Government work force.
EFFECTIVE DATE: This PIC is effective as dated and shall remain in effect until cancelled or superseded.
HEADQUARTERS CONTACT: Jim Dolvin, Code HK, (202) 358-1279, e-mail: firstname.lastname@example.org.
R. Scott Thompson
Director, Contract Management Division