Incorporated in the NFS

 

NASA logo

96-9

Procurement Information Circular


(September 27, 1996)

FUNDING WHICH PROVIDES A CUSTOMER BASE

PURPOSE: To provide guidance on funding grants or contracts that would establish a customer base for new commercial space hardware or services.

BACKGROUND: NASA wants to avoid underwriting a commercial venture, e.g., a company's being created solely because the owners expect NASA to provide a guaranteed customer base. The law specifies a one-year time limit on funding any grant or contract which would have the effect of providing this guaranteed customer base. The one-year time limit makes creating such a company financially infeasible.

GUIDANCE: Public Law 102-139, title III, Section 2459d prohibits NASA from funding any grant or contract for longer than one year if the effect is to provide a guaranteed customer base for new commercial space hardware or services. The only exception would be if an appropriations Act specifies the new commercial space hardware or services to be used.

EFFECTIVE DATE: This PIC is effective as dated and will remain in effect until canceled.

HEADQUARTERS CONTACT: Valerie Stucky, Code HK, (202) 358-0503.

Anne Guenther
Director, Contract

Management Division

 


[FAR] [NASA FAR Supplement] [NASA Procurement Library]