§ 5806. — Anchor tenancy and termination liability.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 15USC5806]
TITLE 15--COMMERCE AND TRADE
CHAPTER 84--COMMERCIAL SPACE COMPETITIVENESS
Sec. 5806. Anchor tenancy and termination liability
(a) Anchor tenancy contracts
Subject to appropriations, the Administrator \1\ 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\ See ``Administrator'' Defined note below.
---------------------------------------------------------------------------
(1) the good or service meets the mission requirements of the
National Aeronautics and Space 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) Contracts entered into under subsection (a) of this section may
provide for the payment of termination liability in the event that the
Government terminates such contracts for its convenience.
(2) 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) 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) Contracts entered into under this section shall not exceed 10
years in duration.
(2) Such contracts shall provide for delivery of the good or service
on a firm, fixed price basis.
(3) To the extent practicable, reasonable performance specifications
shall be used to define technical requirements in such contracts.
(4) 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.
(Pub. L. 102-588, title V, Sec. 507, Nov. 4, 1992, 106 Stat. 5127.)
``Administrator'' Defined
Administrator means Administrator of the National Aeronautics and
Space Administration, see section 102(f) of Pub. L. 102-588, 106 Stat.
5110.
