51 U.S.C. § 50503 — Anchor tenancy and termination liability

submitted 16 years ago by Pub. L. 111-314 to r/title-51-NATIONAL-AND-COMMERCIAL-SPACE-PROGRAMS · 386 words · no verdicts yet

in plain englishAI-generated · not legal advice

The Administrator or NOAA's Administrator may sign multiyear anchor tenancy contracts to buy commercial space goods or services, if six conditions are met. These contracts can include termination liability payments, capped at 10 years and fixed prices.

(a) Anchor Tenancy Contracts. Subject to available funding, the Administrator (of NASA) or the Administrator of NOAA may sign multiyear anchor tenancy contracts to buy a good or service, but only if the appropriate Administrator finds all six of these are true: (1) the good or service meets the agency's mission needs; (2) buying it commercially is cost effective; (3) it is bought through a competitive process; (4) customers other than the U.S. Government have been specifically identified; (5) the venture's long-term survival doesn't depend on continued government business or other non-reimbursed government support; and (6) private capital is at risk in the venture. (b) Termination Liability. (1) In general. These contracts may include a payment if the government cancels the contract for its own convenience. (2) Fixed schedule of payments and limitation on liability. If a contract includes such termination payments, it must set a fixed payment schedule. The total payments can never exceed what the government would have paid to buy the good or service if it hadn't cancelled. (3) Use of funds. Subject to available funding, money set aside for termination payments may instead be used to buy the good or service once it's successfully delivered. In that case, enough money must still be kept available to cover any termination liability that remains. (c) Limitations. (1) Duration. These contracts can't last more than 10 years. (2) Fixed price. These contracts must set delivery of the good or service at a firm, fixed price. (3) Performance specifications. Where practical, the contracts should define technical requirements using reasonable performance specifications. (4) Failure to perform. In every such contract, the Administrator keeps the right to end the contract, in whole or in part, without paying termination liability, if the contractor fails or is expected to fail to meet its obligations.

the actual law source: uscode.house.gov ↗public domain

(a)Anchor Tenancy Contracts.—

Subject to appropriations, the Administrator or the Administrator of the National Oceanic and Atmospheric Administration may enter into multiyear anchor tenancy contracts for the purchase of a good or service if the appropriate Administrator determines that—

(1)

the good or service meets the mission requirements of the Administration or the National Oceanic and Atmospheric Administration, as appropriate;

(2)

the commercially procured good or service is cost effective;

(3)

the good or service is procured through a competitive process;

(4)

existing or potential customers for the good or service other than the United States Government have been specifically identified;

(5)

the long-term viability of the venture is not dependent upon a continued Government market or other nonreimbursable Government support; and

(6)

private capital is at risk in the venture.

(b)Termination Liability.—

(1)In general.—

Contracts entered into under subsection (a) may provide for the payment of termination liability in the event that the Government terminates such contracts for its convenience.

(2)Fixed schedule of payments and limitation on liability.—

Contracts that provide for the payment of termination liability, as described in paragraph (1), shall include a fixed schedule of such termination liability payments. Liability under such contracts shall not exceed the total payments which the Government would have made after the date of termination to purchase the good or service if the contract were not terminated.

(3)Use of funds.—

Subject to appropriations, funds available for such termination liability payments may be used for purchase of the good or service upon successful delivery of the good or service pursuant to the contract. In such case, sufficient funds shall remain available to cover any remaining termination liability.

(c)Limitations.—

(1)Duration.—

Contracts entered into under this section shall not exceed 10 years in duration.

(2)Fixed price.—

Such contracts shall provide for delivery of the good or service on a firm, fixed price basis.

(3)Performance specifications.—

To the extent practicable, reasonable performance specifications shall be used to define technical requirements in such contracts.

(4)Failure to perform.—

In any such contract, the appropriate Administrator shall reserve the right to completely or partially terminate the contract without payment of such termination liability because of the contractor’s actual or anticipated failure to perform its contractual obligations.

Source credit: (Pub. L. 111–314, § 3, Dec. 18, 2010, 124 Stat. 3405.)

history & why it existsrecord from the source credit

2010Enacted · Pub. L. 111-314 · 124 Stat. 3405

A history note hasn’t been published yet. The record shows enactment by Pub. L. 111-314 on 2010-12-18.

all 0 arguments · sorted by: best

no arguments yet — make the first case