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Procurement Information Circular

May 21, 1998



PURPOSE: To establish a standard approach to address Year 2000 compliance in solicitations and new contracts.

BACKGROUND: The Year 2000 problem is recognized throughout the Federal Government and industry as a threat to information technology (IT) applications of an unprecedented magnitude. Dates and date-related data are stored, manipulated and exchanged by virtually all hardware, software and firmware applications. The Office of Management and Budget (OMB), the Federal Acquisition Regulation (FAR), Section 39.106, and NASA Policy require all IT, acquired and/or in use, to be Year 2000 compliant.

GUIDANCE: Contracting officers shall insert the clause "Year 2000 Compliance (May 1998)," in its entirety, in all solicitations and new contracts above the micro-purchase threshold, unless it is determined that IT will not be acquired. This includes solicitations and new contracts for commercial items using Part 12 of the FAR. Contracting officers should consult their COTR or requiring organization for assistance in making this determination.

The clause "Year 2000 Compliance (May 1998)," included herein, requires following:

(i) the contractor shall provide, operate, and/or maintain IT under the contract that is Year 2000 compliant;
(ii) the contractor shall demonstrate, through documentation, that IT provided to NASA is Year 2000 compliant; and
(iii) the contractor shall warrant that provided IT is Year 2000 compliant.

Paragraph (b) of the clause concerns the type of documentation contractors must provide to demonstrate that IT is Year 2000 compliant. The contracting officer, in conjunction with the contracting officer’s technical representative (COTR), shall determine the level of documentation commensurate with the complexity of the IT. Compliance documentation shall be retained in the contract file.

Paragraph (d) of the clause defines the duration of the warranty in terms of a notification period. In no case shall the notification period be less than 90 days. The contracting should specify a longer notification period, as necessary, to be commensurate with a solicitation or contract that involves the delivery of complex IT.

If a new solicitation or contract that involves the operation and/or maintenance of existing IT systems, the contracting officer shall include the following Statement of Work requirement:

Milestones for Renovation, Validation and Implementation: Any IT determined to be non-Year 2000 compliant shall be replaced, retired, or repaired in accordance with the following schedule:

o        "Validation" includes unit, integration, system, and end-to-end testing for Year 2000 compliance. The Contractor must complete validation and testing of converted or replaced systems by January 31, 1999.

o        "Implementation" includes acceptance testing and integration of converted and replaced systems into a production environment. The Contractor must complete implementation by March 31, 1999.

At a minimum, the Contractor shall provide documentation, including project plans and status reports, which demonstrate that the Contractor is meeting the milestones listed above.

Finally, if applicable, contracting officers should structure any Award Fee provision in solicitations or contracts to incentivize the contractor to achieve Year 2000 compliance requirements and milestones. As such, the administration of award fee should address achieving Year 2000 compliance as a performance metric, including any cooperative efforts where more that one contractor shares responsibilities and/or interfaces with a system(s).


(MAY 1998)

(a) Definition: "Year 2000 compliant", as used in this clause, means that the information technology (hardware, software and firmware, including embedded systems or any other electro-mechanical or processor-based systems used in accordance with its associated documentation) accurately processes date and date-related data (including, but not limited to, calculating, comparing, and sequencing) from, into, and between the twentieth and twenty-first centuries, and the years 1999 and 2000 and leap year calculations, to the extent that other information technology, used in combination with the information technology being acquired, properly exchanges date and date-related data with it.

(b) Any information technology provided, operated and/or maintained under this contract is required to be Year 2000 compliant. To ensure this result, the Contractor shall provide documentation describing how the IT items or services demonstrate Year 2000 compliance, consisting of: [List required documentation commensurate with the complexity of the information technology being acquired, e.g., standard product literature or test reports for commercial items, test procedures, and/or certification for complex systems.]

(c) The Contractor warrants that any IT items or services provided under this contact that involve the processing of date and date-related data are Year 2000 compliant. If the contract requires that specific listed products must perform as a system in accordance with the foregoing warranty, then that warranty shall apply to those listed products as a system.

(d) The remedies available under this warranty shall include repair or replacement, at no additional cost to the Government, of any provided items or services whose non-compliance is discovered and made known to the Contractor in writing within 90 days after acceptance. In addition, all other the terms and limitations of the Contractor’s standard commercial warranty or warranties shall be available to the Government for the IT items or services acquired under this contract. Nothing in this warranty shall be construed to limit any rights or remedies the Government may otherwise have under this contract with respect to defects other than Year 2000 performance.

(end of clause)

CANCELLATION: This PIC, in conjunction with PIC 98-9, supersedes and cancels the NASA letter of March 31, 1998 (subject Information Technology and the Year 2000), signed by the Chief Information Officer and the Associate Administrator for Procurement.

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

HEADQUARTERS CONTACT: Steven Parker, Code HC, (202) 358-0462, e-mail:

Deidre A. Lee
Associate Administrator for Procurement

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