Authority

PART 1733—PROTESTS, DISPUTES,
AND APPEALS

1733.209

Subpart 1733.2—Disputes and Appeals
Sec.
1733.203 Applicability.
1733.203–70 Designation of the Interior
Board of Contract Appeals to decide OPM
appeals.
1733 209 Suspected fraudulent claims.
1733.211 Contracting officer’s decision.
1733.212 Contracting officer’s duties upon
appeal.
1733.214 Contract clause.
AUTHORITY: 40 U.S.C. 486(c); 48 CFR 1.301.
SOURCE: 51 FR 44296, Dec. 9, 1986, unless
otherwise noted.

Subpart 1733.2—Disputes and
Appeals
1733.203

Applicability.

(a) The Office of Personnel Management’s (OPM) procurement executive
shall make the determination prescribed under FAR 33.203(b).
(b) Requests for determinations
under paragraph (a) of this section
shall be submitted by OPM’s contracting officer through OPM’s head of
the contracting activity to the procurement executive for further action.
1733.203–70 Designation of the Interior Board of Contract Appeals to
decide OPM appeals.
(a) The Interior Board of Contract
Appeals (IBCA) has been designated by
the Director of OPM to consider and
determine appeals from decisions of a
contracting officer arising under a contract or relating to a contract made by
OPM. This delegation governs disputes
between OPM and its prime contractors and does not encompass any claim
made by a third party beneficiary of, or
by a subscriber to, a Federal employee
insurance program.
(b) The address of IBCA is 4015 Wilson
Boulevard, Arlington, VA 22203.
(c) IBCA rules of procedure can be
found in 43 CFR part 4.

Suspected fraudulent claims.

If the contractor is unable to support
any part of the claim and there is evidence that the inability is attributable
to misrepresentation of fact or to fraud
on the part of the contractor, the contracting officer shall refer the matter
through the head of the contracting activity to OPM’s Offices of the Inspector
General and the General Counsel.
1733.211

Contracting officer’s decision.

The written decision required by
FAR 33.211(a)(4) shall include, in the
paragraph
listed
under
FAR
33.211(a)(4)(v), specific reference to the
Interior Board of Contract Appeals,
4015 Wilson Boulevard, Arlington, VA
22203, and its procedures under 43 CFR
part 4. The IBCA optional small claims
(expedited) procedures and accelerated
procedures under 43 CFR 4.113 shall
also be referenced as required by the
FAR.
1733.212 Contracting
upon appeal.

officer’s

(a) When a notice of appeal has been
received, the contracting officer shall
endorse on the appeal the date of mailing (or the date of receipt if the notice
was not mailed) and forward it to IBCA
by certified mail within 5 days of receipt. OPM’s Office of the General
Counsel and the Department of the Interior’s (DOI) Office of the Solicitor
shall also be notified of the appeal by
the contracting officer. 43 CFR 4.103.
(b) The contracting officer shall prepare and transmit the documentation
and information required by 43 CFR
4.104 in the form of an appeal file to
IBCA, OPM’s Office of the General
Counsel, DOI’s Office of the Solicitor,
and appellant or appellant’s counsel
within 30 days after receipt of a notice
of appeal or advice that an appeal has
been docketed by IBCA.
1733.214 Contract clause.
The Disputes clause contained in
FAR 52.233–1 shall be used with its Alternate I in all OPM solicitations and
contracts.

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CHAPTER 18—NATIONAL AERONAUTICS AND
SPACE ADMINISTRATION
(Parts 1800 to 1899)

EDITORIAL NOTE: 1. Nomenclature changes to chapter 18 appear at 58 FR 51136, Sept. 30, 1993
and 67 FR 30602, May 7, 2002.

SUBCHAPTER A—GENERAL
Part

Page

1801
1802
1803
1804

Federal acquisition regulations system ..................
Definitions of words and terms ...............................
Improper business practices and personal conflicts
of interest .............................................................
Administrative matters ..........................................

177
181
181
184

SUBCHAPTER B—COMPETITION AND ACQUISITION PLANNING

1805
1806
1807
1808
1809
1811
1812

Publicizing contract actions ...................................
Competition requirements ......................................
Acquisition planning ...............................................
Required sources of supplies and services ...............
Contractor qualifications ........................................
Describing agency ...................................................
Acquisition of commercial items ............................

195
198
201
207
212
216
218

SUBCHAPTER C—CONTRACTING METHODS AND CONTRACT TYPES

1813
1814
1815
1816
1817

Simplified acquisition procedures ...........................
Sealed bidding .........................................................
Contracting by negotiation .....................................
Types of contracts ...................................................
Special contracting methods ...................................

220
222
224
248
258

SUBCHAPTER D—SOCIOECONOMIC PROGRAMS

1819
1822

Small business programs .........................................
Application of labor laws to government acquisitions .....................................................................
175

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266
277

48 CFR Ch. 18 (10–1–02 Edition)
Part

1823

1824
1825

Page

Environment, energy and water efficiency, renewable energy technologies, occupational safety,
and drug–free workplace ......................................
Protection of privacy and freedom of information
Foreign acquisition .................................................

281
284
284

SUBCHAPTER E—GENERAL CONTRACTING REQUIREMENTS

1827
1828
1829
1830
1831
1832
1833

Patents, data, and copyrights .................................
Bonds and insurance ................................................
Taxes .......................................................................
Cost accounting standards administration .............
Contract cost principles and procedures .................
Contract financing ..................................................
Protests, disputes, and appeals ...............................

289
299
302
303
305
307
312

SUBCHAPTER F—SPECIAL CATEGORIES OF CONTRACTING

1834
1835
1836
1837
1839

Major system acquisition ........................................
Research and development contracting ..................
Construction and architect-engineer contracts ......
Service contracting .................................................
Acquisition of information technology ...................

315
315
319
323
324

SUBCHAPTER G—CONTRACT MANAGEMENT

1840
1841
1842
1843
1844
1845
1846
1847
1848
1849
1850
1851

[Reserved]
Acquisition of utility services .................................
Contract administration and audit services ...........
Contract modifications ...........................................
Subcontracting policies and procedures ..................
Government property ..............................................
Quality assurance ....................................................
Transportation ........................................................
Value engineering ...................................................
Termination of contracts ........................................
Extraordinary contractual actions .........................
Use of government sources by contractors ..............

326
327
338
340
342
364
371
372
373
376
378

SUBCHAPTER H—CLAUSES AND FORMS

1852
1853

Solicitation provisions and contract clauses ..........
Forms ......................................................................

380
450

SUBCHAPTER I—AGENCY SUPPLEMENTARY REGULATIONS

1871
1872

Midrange procurement procedures ..........................
Acquisitions of investigations .................................
176

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455
465

SUBCHAPTER A—GENERAL
PART 1801—FEDERAL ACQUISITION
REGULATIONS SYSTEM
Sec.
1801.000

and Space Administration (NASA) Federal Acquisition Regulations (FAR)
Supplement, also referred to as the
NFS.

Scope of part.

Subpart 1801.1—Purpose,
Authority, Issuance

Subpart 1801.1—Purpose, Authority,
Issuance
1801.103 Authority.
1801.104 Applicability.
1801.105 Issuance.
1801.105–1 Publication and code arrangement.
1801.105–2 Arrangement of regulations.
1801.106 OMB approval under the Paperwork
Reduction Act.

Subpart 1801.2—Administration
1801.270 Amendment of the NFS.
1801.271 NASA procedures for FAR and NFS
changes.
1801.272 Procurement Information Circulars.

Subpart 1801.3—Agency Acquisition
Regulations
1801.301
1801.303

Policy.
Publication and codification.

devi-

Subpart 1801.6—Career Development,
Contracting Authority, and Responsibilities
1801.601 General.
1801.602–3 Ratification of unauthorized commitments.
1801.603 Selection, appointment, and termination of appointment.
1801.603–2 Selection.
1801.670 Delegations to contracting officer’s
technical representatives (COTRs).

Subpart 1801.7—Determinations and
Findings
1801.707
1801.770

1801.104 Applicability.
The NFS applies to all acquisitions
as defined in FAR Part 2 except those
expressly excluded by the FAR or this
chapter.
1801.105

Subpart 1801.4—Deviations From the FAR
1801.400 Scope of subpart.
1801.471 Procedure for requesting
ations.

1801.103 Authority.
(NASA
supplements paragraph (a))
(a) Under the following authorities,
the Administrator has delegated to the
Assistant Administrator for Procurement authority to prepare, issue, and
maintain the NFS:
(i) The National Aeronautics and
Space Act of 1958 (Public Law 85–568; 42
U.S.C. 2451 et seq.).
(ii) 10 U.S.C. chapter 137.
(iii) Other statutory authority.
(iv) FAR subpart 1.3.

Signatory authority.
Legal review.

AUTHORITY: 42 U.S.C. 2473(c)(1).
SOURCE: 61 FR 40534, Aug. 5, 1996, unless
otherwise noted.

1801.000 Scope of part.
This part sets forth general information about the National Aeronautics

Issuance.

1801.105–1 Publication and code arrangement.
(NASA
supplements
paragraphs (a) and (b))
(a) The single official NASA-maintained version of the NFS is on the
Internet (http://www.hq.nasa.gov/office/
procurement/regs/nfstoc.htm).
(b) The NFS is issued as chapter 18 of
title 48, Code of Federal Regulations
(CFR).
[61 FR 40534, Aug. 5, 1996, as amended at 64
FR 36606, July 7, 1999]

1801.105–2 Arrangement
of
regulations. (NASA supplements paragraph (b))
(b)(1)(A) Numbering of NFS text implementing the FAR shall be the same
as that of the related FAR text, except
when the NFS coverage exceeds one
paragraph. In such case the NFS text is
numbered by skipping a unit in the
FAR 1.105–2(b)(2) prescribed numbering
sequence. For example, two paragraphs
implementing FAR 1.105–2(b)(1) are
numbered 1801.105–2(b)(1) (A) and (B),

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1801.106

48 CFR Ch. 18 (10–1–02 Edition)

rather than (1) (i) and (ii). Further subdivision of the NFS implementing
paragraphs would follow the prescribed
sequence in FAR 1.105(b)(2).
(B) NFS text that supplements the
FAR is numbered the same as its FAR
counterpart with the addition of a
number 70 and up. For example, NFS
supplement of FAR subsection 1.105–3
is numbered 1801.105–370. Supplemental
text exceeding one paragraph is numbered using the FAR 1.105–2(b)(2) prescribed numbering sequence without
skipping a unit.
(2) Subdivision numbering below the
fourth level repeats the numbering sequence using italicized letters and
numbers.
1801.106 OMB approval under the Paperwork Reduction Act. (NASA
paragraphs (1) and (2))
(1) NFS requirements. The following
OMB control numbers apply:

Subpart 1801.2—Aministration
1801.270

Amendment of the NFS.

(a) The NFS is amended by publishing changes in the FEDERAL REGISTER. These changes are then incorporated into the NASA-maintained
Internet version of the NFS through
Procurement Notices (PNs). PNs are
numbered consecutively, prefixed by
the last two digits of the calendar year
of issuance of the current edition of the
NFS.
(b) Compliance with a revision to the
NFS shall be in accordance with the
PN containing the revision. Unless otherwise stated, solicitations that have
been issued, and bilateral agreements
for which negotiations have been completed, before the receipt of new or revised contract clauses need not be
amended to include the new or revised
clauses if including them would unduly
delay the acquisition.
[64 FR 36606, July 7, 1999]

1801.271 NASA procedures
and NFS changes.

OMB
Control
No.

NFS Segment
1804.470 ............................................................
1804.74 ..............................................................
1819 ...................................................................
1819.72 ..............................................................
1827 ...................................................................
1831 ...................................................................
1843 ...................................................................
1843.71 ..............................................................
NF 533 ...............................................................
NF 1018 .............................................................

2700–0098
2700–0097
2700–0073
2700–0078
2700–0052
2700–0080
2700–0054
2700–0094
2700–0003
2700–0017

(2) Solicitations and contracts. Various
requirements in a solicitation or contract, generally in the statement of
work, are not tied to specific paragraphs cleared in paragraph (1) of this
section, yet require information collection or recordkeeping. The following
OMB control numbers apply to these
requirements: 2700–0086 (acquisitions up
to $25,000), 2700–0087 (solicitations that
may result in bids or proposals not exceeding
$500,000),
2700–0085
(solicitations that may result in bids
or proposals exceeding $500,000), 2700–
0088 (contracts not exceeding $500,000),
and 2700–0089 (contracts exceeding
$500,000).
[61 FR 40534, Aug. 5, 1996, as amended at 63
FR 9953, Feb. 27, 1998; 65 FR 46627, July 31,
2000]

for

(a) Informal suggestions for improving the NFS, including correction of errors, should be directed to the Headquarters Office of Procurement (Code
HK).
(b) (1) Formal requests for changes to
the FAR or the NFS should be written
and contain
(i) A description of the problem the
suggested revision is designed to cure,
(ii) The revision in the form of a
marked-up copy of the current FAR or
NFS language or the text of any additional language,
(iii) The consequences of making no
change and the benefits to be expected
from a change, and
(iv) Any other information necessary
for understanding the situation, such
as relationship between FAR and NFS
coverage, legal opinions, coordination
with other offices, and existing agreements.
(2) Formal requests for FAR and NFS
changes should be sent to Code HK. Requests
from
Headquarters
offices
should originate at the division level or
higher, while installation requests
should be signed at the procurement officer or higher level.

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National Aeronautics and Space Administration
1801.272 Procurement
Information
Circulars.
(a) The Procurement Information
Circular (PIC) is used for internal dissemination of procurement-related information and directives not suitable
for inclusion in the NFS. Code HK is
responsible for issuing PICs.
(b) PICs are numbered on a calendar
year basis, beginning with number 1,
prefixed by the last two digits of the
year.

Subpart 1801.3—Agency
Acquisition Regulations
1801.301 Policy. (NASA supplements
paragraphs (a) and (b))
(a)(2) Heads of NASA field installations may prescribe policies and procedures that do not have a significant effect beyond the internal operating procedures of their installations. All other
policies, procedures, and solicitation
and contract provisions and clauses
must be forwarded to the Headquarters
Office of Procurement (Code HK) for
approval in accordance with 1801.271(b).
(b)(i) 41 U.S.C. 418b requires publication of NFS changes for public comment where there will be a significant
effect beyond the internal operating
procedures of the agency or a significant cost or administrative impact on
contractors or offerors. However, it
does not define ‘‘significant effect beyond the internal operating procedures’’ or ‘‘significant cost or administrative impact.’’ Examples of policies
or procedures that fall in either of
these categories are:
(A) A contract clause requiring contractors to take precautions to avoid
injury to Florida manatees, which have
been designated as an endangered species, has a significant cost impact for
contractors who must obtain protective devices for boat propellers and
take other safety actions.
(B) A contract clause requiring contractors to follow the Government’s
holiday schedule, thereby disallowing
premium pay for work on contractordesignated holidays, will have an effect
outside the internal operating procedures of the agency.
(C) A contract clause requiring contractors to segregate costs by appropriations will affect the contractor’s

1801.471

internal accounting system and have a
significant impact.
(D) Requiring contractor compliance
with NASA’s Space Transportation
System Personnel Reliability Program
will have an effect outside the internal
operating procedures of the agency.
(ii) In contrast, the following would
not have to be publicized for public
comment:
(A) Security procedures for identifying and badging contractor personnel
to obtain access at a NASA installation.
(B) A one-time requirement in a construction contract for the contractor
to develop a placement plan and for inspection prior to any concrete being
placed. (This is a part of the specification or statement of work.)
(C) A policy that requires the NASA
installation to maintain copies of unsuccessful offers.
1801.303 Publication and codification.
(NASA supplements paragraph (a))
(a) Part, subpart, and section numbers 70 through 89 are reserved for NFS
supplementary material for which
there is no FAR counterpart.

Subpart 1801.4—Deviations From
the FAR
1801.400 Scope of subpart.
This subpart prescribes the policies
and procedures for authorizing deviations from the FAR and the NFS.
1801.471 Procedure for requesting deviations.
(a) Requests for authority to deviate
from the FAR or the NFS shall be submitted by the Procurement Officer to
the Headquarters Office of Procurement (Code HS).
(b) Each request for a deviation shall
contain, as a minimum—
(1) Identification of the FAR or the
NFS requirement from which a deviation is sought;
(2) A full description of the deviation,
the circumstances in which it will be
used, and the specific contract action(s) to which it applies;
(3) A description of its intended effect;
(4) A statement as to whether the deviation has been requested previously

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1801.601

48 CFR Ch. 18 (10–1–02 Edition)

and, if so, the circumstances of the previous request;
(5) Identification of the contractor(s)
and the contract(s) affected, including
dollar value(s);
(6) Detailed reasons supporting the
request, including any pertinent background information; and
(7) A copy of counsel’s concurrence or
comments.
(c) In addition to the information required by 1801.471(b), requests for individual deviations from FAR cost principles under FAR 31.101 should include
a copy of the contractor’s request for
cost allowance.

Subpart 1801.6—Career Development, Contracting Authority,
and Responsibilities
1801.601 General.
The authority to contract for authorized supplies and services is delegated
to the Assistant Administrator for Procurement and installation officials by
NPD 5101.32.
1801.602–3 Ratification of unauthorized commitments. (NASA supplements paragraphs (b) and (c))
(b) Policy. Individuals making unauthorized commitments may be subject
to disciplinary action, and the issue
may be referred to the Office of Inspector General.
(c)(7) The authority in FAR 1.602–3
may be exercised only when—
(A) The Government employee who
made the unauthorized commitment,
or his/her supervisor, if appropriate,
initiates a procurement request in accordance with 1804.7301.
(B) The procurement request and/or
accompanying documentation identifies the individual who made the unauthorized commitment, and includes a
statement signed by the individual
that explains why normal acquisition
procedures were not followed, explains
why the firm was selected, lists other
sources considered, describes the work,
and estimates or states the agreed
price. If the Government representative who made the unauthorized commitment is no longer available, appropriate program personnel shall provide
the information described in this paragraph.

(C) The procurement request is submitted through the director of the cognizant program office at the contracting activity, or comparable official. In the procurement request, the
director shall describe measures taken
to prevent the recurrence of the unauthorized commitment.
1801.603 Selection, appointment, and
termination of appointment.
1801.603–2

Selection.

Normally, only GS–1102 and –1105 personnel with the proper training and experience may be appointed contracting
officers and only when a valid organizational need can be demonstrated.
1801.670 Delegations to contracting officer’s technical representatives
(COTRs).
A COTR delegation may be made
only by the contracting officer cognizant of that contract at the time the
delegation is made. If the cognizant
contracting officer is absent, the delegation letter may be signed by a warranted contracting officer at any level
above the cognizant contracting officer. An individual COTR may have
only the duties specifically identified
in a written delegation to him or her
by name (i.e., COTR duties may not be
delegated to a position) and has no authority to exceed them. COTRs should
be informed that they may be personally liable for unauthorized commitments. Contracting officer authority to
sign or authorize contractual instruments shall not be delegated through a
COTR designation or by any means
other than a contracting officer warrant.

Subpart 1801.7—Determinations
and Findings
1801.707

Signatory authority.

Signatory authority for determinations and findings (D&Fs) is specified
in the FAR or the NFS text for the associated subject matter. The Administrator may make any of the D&Fs that
may be made by the Assistant Administrator for Procurement or by a contracting officer.

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National Aeronautics and Space Administration
1801.770 Legal review.
Each D&F, including class D&Fs,
shall be reviewed by counsel for form
and legality before signature by the approving authority.

PART 1802—DEFINITIONS OF
WORDS AND TERMS
Sec.
1802.000

Procurement officer means the chief of
the contracting office, as defined in
FAR 2.101.
Senior Procurement Executive means
the Associate Administrator or Deputy
Assistant Administrator for Procurement, Office of Procurement, NASA
Headquarters (Code H).
[61 FR 40537, Aug. 5, 1996, as amended at 63
FR 9953, Feb. 27, 1998; 64 FR 19926, Apr. 23,
1999]

Scope of part.

PART 1803—IMPROPER BUSINESS
PRACTICES
AND
PERSONAL
CONFLICTS OF INTEREST

Subpart 1802.1—Definitions
1802.101

Pt. 1803

Definitions.

AUTHORITY: 42 U.S.C. 2473(c)(1)
SOURCE: 61 FR 40537, Aug. 5, 1996, unless
otherwise noted.

1802.000 Scope of part.
Commonly used words and terms are
defined in FAR subpart 2.1. This part
1802 gives NASA-specific meanings for
some of these words and terms and defines other words and terms commonly
used in the NASA acquisition process.

Subpart 1802.1—Definitions
1802.101 Definitions.
Administrator means the Administrator or Deputy Administrator of
NASA.
Contracting activity in NASA includes
the NASA Headquarters installation
and the following field installations:
Ames Research Center, Dryden Flight
Research Center, Glenn Research Center at Lewis Field, Goddard Space
Flight Center, Johnson Space Center,
Kennedy Space Center, Langley Research Center, Marshall Space Flight
Center, Space Station Program Office
and Stennis Space Center.
Head of the agency or agency head
means the Administrator or Deputy
Administrator of NASA.
Head of the contracting activity means,
for field installations, the Director or
other head and, for NASA Headquarters, the Director for Headquarters
Operations.
NASA Acquisition Internet Service
(NAIS) means the Internet service
(URL:
hhtp://procurement.nasa.gov)
NASA uses to broadcast its business
opportunities,
procurement
regulations, and associated information.

Subpart 1803.1—Safeguards
Sec.
1803.101 Standards of conduct.
1803.101–1 General.
1803.101–2 Solicitation and acceptance of
gratuities by Government personnel.
1803.104 Procurement integrity.
1803.104–1 Definitions.
1803.104–4 Disclosure, protection, and marking of contractor bid or proposal information and source selection information.
1803.104–7 Violations or possible violations.
(NASA supplements paragraphs (a), (b)
and (f))

Subpart 1803.2—Contract or Gratuities to
Government Personnel
1803.203 Reporting suspected violations of
the Gratuities clause.

Subpart 1803.3—Reports of Suspected
Antitrust Violations
1803.303 Reporting suspected antitrust violations.

Subpart 1803.5—Other Improper Business
Practices
1803.502

Subcontractor kickbacks.

Subpart 1803.6—Contracts With Government Employees or Organizations
Owned or Controlled by Them
1803.602

Exceptions.

Subpart 1803.7—Voiding and Rescinding
Contracts
1803.704
1803.705

Policy.
Procedures.

Subpart 1803.8—Limitation on the Payment
of Funds to Influence Federal Transactions
1803.804

Policy.

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1803.101
1803.806

48 CFR Ch. 18 (10–1–02 Edition)

Processing suspected violations.

1803.104–4 Disclosure, protection, and
marking of contractor bid or proposal information and source selection information.

Subpart 1803.70—IG Hotline Posters
1803.7000
1803.7001

Policy.
Contract clause.

AUTHORITY: 42 U.S.C. 2473(c)(1)
SOURCE: 61 FR 40537, Aug. 5, 1996, unless
otherwise noted.

Subpart 1803.1—Safeguards
1803.101

Standards of conduct.

1803.101–1

General.

The statutory prohibitions and their
application to NASA personnel are discussed in the Standards of Ethical Conduct for Employees of the Executive
Branch, 5 CFR part 2635, and the Supplemental Standards of Ethical Conduct for Employees of the National
Aeronautics and Space Administration,
5 CFR part 6901. All NASA personnel
involved in acquisitions shall become
familiar with these statutory prohibitions. Any questions concerning them
shall be referred to legal counsel. In
addition to criminal penalties, the
statutes provide that transactions entered into in violation of these prohibitions are voidable (18 U.S.C. 218).
[61 FR 40537, Aug. 5, 1996, as amended at 62
FR 14016, Mar. 25, 1997]

1803.101–2 Solicitation and acceptance
of gratuities by Government personnel.
Any suspected violations shall be reported promptly to the installation’s
Office of Inspector General.
[61 FR 40537, Aug. 5, 1996, as amended at 62
FR 14016, Mar. 25, 1997]

1803.104

Procurement integrity.

[62 FR 36704, July 9, 1997]

1803.104–1

Definitions.

Agency ethics official means for Headquarters, the General Counsel and the
Associate General Counsel for General
Law, and for each center, the Chief
Counsel.
[62 FR 36704, July 9, 1997. Redesignated at 67
FR 30603, May 7, 2002]

(a) Government employees serving in
the following positions are authorized
access to proprietary or source selection information, but only to the extent necessary to perform their official
duties:
(i) Personnel participating in source
evaluation board (SEB) procedures (see
1815.370) or personnel evaluating an
offeror’s or bidder’s technical or cost
proposal under other competitive procedures and personnel evaluating protests.
(ii) Personnel assigned to the contracting office.
(iii) The initiator of the procurement
request (to include the official having
principal technical cognizance over the
requirement).
(iv) Small business specialists.
(v) Personnel assigned to counsel’s
office.
(vi) Personnel assigned to the Defense Contract Audit Agency and contract administration offices of the Department of Defense.
(vii) Personnel responsible for the review and approval of documents in accordance with the Master Buy Plan
Procedure in Subpart 1807.71.
(viii) Other Government employees
authorized by the contracting officer.
(ix) Supervisors, at any level, of the
personnel listed in paragraphs 1803.104–
4(a) (i) through (viii).
(x) Duly designated ombudsman.
(c)(i) The originator of information
that may be source selection information shall consult with the contracting
officer or the procurement officer, who
shall determine whether the information is source selection information.
NASA personnel responsible for preparing source selection information as
defined in FAR 2.101 shall assure that
the material is marked with the legend
in FAR 3.104–4(c) at the time the material is prepared.
(ii) Unless marked with the legend
‘‘SOURCE
SELECTION
INFORMATION—SEE FAR 2.101 and 3.104,’’ draft
specifications, purchase descriptions,
and statements of work are not considered source selection information and

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National Aeronautics and Space Administration
may be released during a market survey in order to determine the capabilities of potential competitive sources
(see FAR Subpart 7.1). All documents,
once released, must remain available
to the public until the conclusion of
the acquisition.
[62 FR 36704, July 9, 1997, as amended at 63
FR 9966, Feb. 27, 1998. Redesignated and
amended 67 FR 30603, May 7, 2002]

1803.104–7 Violations or possible violations. (NASA supplements paragraphs (a), (b) and (f))
(a)(1) The Procurement Officer is the
individual designated to receive the
contracting officer’s report of violations.
(b) The head of the contracting activity (HCA) or designee shall refer all information describing an actual or possible violation to the installation’s
counsel and inspector general staff and
to the Assistant Administrator for Procurement (Code HS).
(f) When the HCA or designee determines that award is justified by urgent
and compelling circumstances or is
otherwise in the interest of the Government, then that official shall submit a copy of the determination to the
Assistant Administrator for Procurement (Code HS) simultaneous with
transmittal to the Administrator.
[62 FR 36704, July 9, 1997. Redesignated at 67
FR 30603, May 7, 2002]

Subpart 1803.2—Contract or Gratuities to Government Personnel
1803.203 Reporting suspected violations of the Gratuities clause.
Any suspected violations of the
clause at FAR 52.203–3, Gratuities,
shall be reported to the installation’s
Office of Inspector General.

1803.502

tions, the contracting officer shall report the circumstances to the General
Counsel, NASA Headquarters, through
the Office of Procurement (Code HS).
Reports should not be submitted automatically but only when there is reason to believe the offers may not have
been arrived at independently. These
reports shall be submitted with conformed copies of bids or proposals, contract documents, and other supporting
data, and shall set forth—
(A) The noncompetitive pattern or
situation under consideration;
(B) Purchase experience in the same
product or service for a reasonable period (one or more years) preceding receipt of the offers under consideration,
including unit and total contract
prices and abstracts of bids;
(C) Community of financial interest
among offerors, insofar as it is known;
(D) The extent, if any, to which specification requirements or patents restrict competition;
(E) Any information available about
the pricing system employed in offers
believed to reflect noncompetitive
practices; and
(F) Any other pertinent information.
(ii) Evidence of practices that, in the
opinion of the General Counsel, NASA
Headquarters, may violate the antitrust laws shall be forwarded to the Attorney General of the United States
(see FAR 3.303).
(d) The contracting officer shall submit the identical bid report required by
FAR 3.303(d) to NASA Headquarters,
Office of Procurement (Code HS). The
report shall include the reasons for suspecting collusion. Code HS shall forward a copy to the NASA Office of the
Inspector General.

Subpart 1803.5—Other Improper
Business Practices

Subpart 1803.3—Reports of
Suspected Antitrust Violations

1803.502
1803.303 Reporting suspected antitrust violations. (NASA supplements
paragraphs (b) and (d))
(b)(i) When offers are received that,
in the opinion of the contracting officer, indicate possible antitrust viola-

Subcontractor kickbacks.

Contracting officers shall report suspected violations of the Anti-Kickback
Act in accordance with 1809.470.

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1803.602

48 CFR Ch. 18 (10–1–02 Edition)

Subpart 1803.6—Contracts With
Government Employees or
Organizations Owned or Controlled by Them
1803.602 Exceptions.
The Assistant Administrator for Procurement has been delegated the authority to authorize an exception to
the policy in FAR 3.601. The Assistant
Administrator for Procurement has redelegated this authority to the heads
of contracting activities (HCAs) for individual actions in the aggregate of
$100,000 and below, inclusive of followon acquisitions, with concurrence by
the HCA’s Office of Chief Counsel. All
requests above the HCA’s authority
shall be forwarded to the Assistant Administrator for Procurement (Code HS)
for approval.

Subpart 1803.7—Voiding and
Rescinding Contracts

15th for the period ending September
30th.
1803.806 Processing suspected violations.
The Assistant Administrator for Procurement (Code HS) is the designated
official to whom suspected violations
of the Act shall be referred.

Subpart 1803.70—IG Hotline
Posters
1803.7000 Policy.
NASA requires contractors to display
NASA hotline posters prepared by the
NASA Office of Inspector General on
those contracts specified in 1803.7001, so
that employees of the contractor having knowledge of waste, fraud, or
abuse, can readily identify a means to
contact NASA’s IG.
[66 FR 29727, June 1, 2001]

1803.704 Policy. (NASA supplements
paragraph (a))
(a) The Assistant Administrator for
Procurement has been delegated authority to void or rescind contracts
when there is a final conviction for violation of 18 U.S.C. 201–224 (Bribery,
Graft and Conflicts of Interest) relating to them.
1803.705 Procedures.
Procurement officers shall make reports to the Assistant Administrator
for Procurement (Code HS). The Assistant Administrator for Procurement is
responsible for the actions, notices,
and decisions required by FAR 3.705(c),
(d), and (e).

Subpart 1803.8—Limitation on the
Payment of Funds to Influence
Federal Transactions
1803.804 Policy
Procurement officers shall forward
one copy of each Disclosure of Lobbying Activities (SF–LLL) furnished
pursuant to FAR 3.803 to the Office of
Procurement (Code HS). The original
shall be retained in the contract file.
Forms shall be submitted semi-annually by April 15th for the six-month period ending March 31st, and by October

1803.7001 Contract clause.
Contracting officers must insert the
clause at 1852.203–70, Display of Inspector General Hotline Posters, in solicitations and contracts expected to exceed $5,000,000 and performed at contractor facilities in the United States.
[66 FR 29727, June 1, 2001]

PART 1804—ADMINISTRATIVE
MATTERS
Subpart 1804.1—Contract Executive
Sec.
1804.103
1804.170

Contract clause.
Contract effective date.

Subpart 1804.2—Contract Distribution
1804.202 Agency distribution requirements.
1804.203 Taxpayer identification information.

Subpart 1804.4—Safeguarding Classified
Information Within Industry
1804.402 General.
1804.404–70 Contract clause.
1804.470 Security requirements for unclassified information technology resources.
1804.470–1 Scope.
1804.470–2 Policy.
1804.470–3 Security Plan for Unclassified
Federal Information Technology Systems.
1804.470–4 Contract clauses.

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National Aeronautics and Space Administration
Subpart 1804.5—Electronic Commerce in
Contracting

Subpart 1804.72—Review and Approval of
Contractual Instruments

1804.570 NASA Acquisition Internet Service
(NAIS).
1804.570–1 General.
1804.570–2 Electronic posting system.

1804.7200

1804.601 Record requirements.
1804.602 Federal Procurement Data System.
1804.670 Individual Procurement Action Report (NASA Form 507 series).
1804.671 Committee on Academic Science
and Engineering (C.A.S.E.) Report.

Subpart 1804.8—Government Contract
Files

1804.7301

General.

Subpart 1804.74—Central Contractor
Registration
1804.7400
1804.7401
1804.7402
1804.7403
1804.7404
tract

Scope.
Definitions.
Policy.
Procedures.
Solicitation provisions and conclauses.

AUTHORITY: 42 U.S.C. 2473(c)(1).

1804.802–70 Handling of classified material.
1804.803 Contents of contract files.
1804.803–70 Checklist.
1804.804 Closeout of contract files.
1804.804–2 Closeout of the contracting office
files if another office administers the
contract.
1804.804–5 Procedures for closing out contract files.
1804.805 Storage, handling, and disposal of
contract files.
1804.805–70 Review, separation, and retirement of contract files.

Subpart 1804.9—Taxpayer Identification
Number Information
1804.904 Reporting payment information to
the IRS.

Subpart 1804.70—Transfer of Contracting
Office Responsibility
1804.7000 Scope of subpart.
1804.7001 Definition.
1804.7002 Approval of transfer requests.
1804.7003 Responsibilities of the contracting
officer of the transferring installation.
1804.7003–1 Coordinations.
1804.7003–2 File inventory.
1804.7003–3 Notifications.
1804.7003–4 Transfer.
1804.7003–5 Retention documentation.
1804.7004 Responsibilities of the contracting
officer of the receiving installation.
1804.7004–1 Pre-transfer file review.
1804.7004–2 Post-transfer actions.

Subpart 1804.71—Uniform Acquisition
Instrument Identification

contracts

Contract review by Headquarters.

Subpart 1804.73—Procurement Requests

Subpart 1804.6—Contract Reporting

1804.7100 Scope of subpart.
1804.7101 Policy.
1804.7102 Prefixes.
1804.7103 Serial numbers.
1804.7104 Modifications of
agreements.

1804.202

or

SOURCE: 61 FR 40539, Aug. 5, 1996, unless
otherwise noted.

Subpart 1804.1—Contract
Execution
1804.103 Contract clause.
The contracting officer shall include
the clause at FAR 52.204–1, Approval of
Contract, in solicitations, contracts,
and supplemental agreements that require higher level approval. For actions
requiring Headquarters approval, insert ‘‘NASA Assistant Administrator
for Procurement’’ in the clause’s blank
space.
1804.170 Contract effective date.
(a) Contract effective date means the
date agreed upon by the parties for beginning the period of performance
under the contract. In no case shall the
effective date precede the date on
which the contracting officer or designated higher approval authority
signs the document.
(b) Costs incurred before the contract
effective date are unallowable unless
they qualify as precontract costs (see
FAR 31.205–32) and the clause prescribed at 1831.205–70 is used.

Subpart 1804.2—Contract
Distribution
1804.202 Agency distribution requirements.
In addition to the requirements in
FAR 4.201, the contracting officer shall
distribute one copy of each R&D contract, including the Statement of

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1804.203

48 CFR Ch. 18 (10–1–02 Edition)

Work, to the NASA Center for AeroSpace Information (CASI), Attention:
Document Processing Section, 7121
Standard Drive, Hanover, MD 21076–
1320.
[64 FR 36606, July 7, 1999]

1804.203 Taxpayer identification information.
Instead of using the last page of the
contract to provide the information
listed in FAR 4.203, NASA installations
may allow contracting officers to use a
different distribution method, such as
annotating the cover page of the payment office copy of the contract.
[64 FR 1528, Jan. 11, 1999]

Subpart
1804.4—Safeguarding
Classified Information Within
Industry
1804.402 General.
(b) NASA security policies and procedures are prescribed in NPD 1600.2A,
NASA Security Policy; NPG 1600.6A,
Communications Security Procedures
and Guidelines; NPG 1620.1, Security
Procedures and Guidelines; NPG 2810.1
and NPD 2810.1 Security of Information
Technology.
[66 FR 53546, Oct. 23, 2001]

1804.404–70 Contract clause.
The contracting officer shall insert
the clause at 1852.204–75, Security Classification Requirements, in solicitations and contracts if work is to be performed will require security clearances. This clause may be modified to
add instructions for obtaining security
clearances and access to security areas
that are applicable to the particular
acquisition and installation.
1804.470 Security requirements for unclassified information technology
resources.
1804.470–1 Scope.
This section implements NASA’s acquisition-related aspects of Federal
policies for assuring the security of unclassified automated information resources. Federal policies include, but
are not limited to, the Computer Security Act of 1987 (40 U.S.C. 1441 et seq.),
the Clinger-Cohen Act of 1996 (40 U.S.C.

1401 et seq.), Public Law 106–398, section
1061, Government Information Security
Reform, OMB Circular A–130, Management of Federal Information Resources, and the National Institute of
Standards and Technology security
guidance and standards.
[67 FR 48815, July 26, 2002]

1804.470–2

Policy.

(a) NASA policies and procedures on
security for automated information
technology are prescribed in NPD
2810.1, Security of Information Technology, and in NPG 2810.1, Security of
Information Technology. The provision
of information technology (IT) security
in accordance with these policies and
procedures, is required in all contracts
that include IT resources or services in
which a contractor must have physical
or electronic access to NASA’s sensitive information contained in unclassified systems that directly support the
mission of the Agency. This includes
information
technology,
hardware,
software, and the management, operation, maintenance, programming, and
system administration of computer
systems, networks, and telecommunications systems. Examples of tasks
that require security provisions include:
(1) Computer control of spacecraft,
satellites, or aircraft or their payloads;
(2) Acquisition, transmission or analysis of data owned by NASA with significant replacement costs should the
contractor’s copy be corrupted; and
(3) Access to NASA networks or computers at a level beyond that granted
the general public, e.g. bypassing a
firewall.
(b) The contractor must not use or
redistribute any NASA information
processed, stored, or transmitted by
the contractor except as specified in
the contract.
[66 FR 36491, July 12, 2001]

1804.470–3 Security plan for unclassified Federal Information Technology systems.
(a) The requiring activity with the
concurrence of the Center Chief Information Officer (CIO), and the Center
Information Technology (IT) Security
Manager, must determine whether an

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National Aeronautics and Space Administration
IT Security Plan for unclassified information is required.
(b) IT security plans must demonstrate a thorough understanding of
NPG 2810.1 and NPD 2810.1 and must include, as a minimum, the security
measures and program safeguards
planned to ensure that the information
technology resources acquired and used
by contractor and subcontractor personnel—
(1) Are protected from unauthorized
access, alteration, disclosure, or misuse of information processed, stored, or
transmitted;
(2) Can maintain the continuity of
automated information support for
NASA missions, programs, and functions;
(3) Incorporate management, general,
and application controls sufficient to
provide cost-effective assurance of the
systems’ integrity and accuracy;
(4) Have appropriate technical, personnel, administrative, environmental,
and access safeguards;
(5) Document and follow a virus protection program for all IT resources
under its control; and
(6) Document and follow a network
intrusion detection and prevention program for all IT resources under its control.
(c) The contractor must be required
to develop and maintain an IT System
Security Plan, in accordance with NPG
2810.1, for systems for which the contractor has primary operational responsibility on behalf of NASA.
(d) The contracting officer must obtain the concurrence of the Center
Chief of Security before granting any
contractor requests for waiver of the
screening requirement contained in the
clause at 1852.204–76.
[66 FR 36491, July 12, 2001]

1804.470–4

Contract clauses.

The contracting officer must insert a
clause substantially the same as the
clause at 1852.204–76, Security Requirements for Unclassified Information
Technology Resources, in solicitations
and contracts which require submission of an IT Security Plan.
[66 FR 36491, July 12, 2001]

1804.570–2

Subpart 1804.5—Electronic
Commerce in Contracting
SOURCE: 63 FR 9954, Feb. 27, 1998, unless
otherwise noted.

1804.570 NASA Acquisition
Service (NAIS).
1804.570–1

Internet

General.

The NASA Acquisition Internet Service (NAIS) provides an electronic
means for posting procurement synopses, solicitations, and associated information on the NAIS Internet site
which in turn, automatically posts relevant information onto the Governmentwide point of entry (GPE).
[66 FR 53546, Oct. 23, 2001]

1804.570–2

Electronic Posting System.

(a) The NAIS Electronic Posting System (EPS) enables the NASA procurement staff to—
(1) Electronically create and post
synopses on the NAIS Internet site and
the GPE; and
(2) Post solicitation documents, including solicitation amendments or
cancellations, and other procurement
information on the NAIS Internet site
with linked references on the GPE.
(b) The EPS maintains an on-line
index linking the posted synopses and
solicitations
for
viewing
and
downloading.
(c) The EPS shall be used to—
(1) Create and post all synopses in accordance with FAR part 5 and NFS
1805; and
(2) Post all competitive solicitation
files, excluding large construction and
other drawings, for acquisitions exceeding $25,000.
(d) The NAIS is the official site for
solicitation postings which in turn,
automatically posts relevant information onto the Government-wide point
of entry (GPE). In the event supporting
materials, such as program libraries,
cannot be reasonably accommodated
by the NAIS, Internet sites external to
NAIS may be established after coordination with the contracting officer.
Such sites must be linked from the
NAIS business opportunities index
where the solicitation resides. External

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1804.601

48 CFR Ch. 18 (10–1–02 Edition)

sites should not duplicate any of the
files residing on the NAIS.
[66 FR 53546, Oct. 23, 2001]

Subpart 1804.6—Contract
Reporting
1804.601 Record requirements.
The Headquarters Office of Procurement (Code HC) is responsible for meeting the requirements of FAR 4.601,
based on installation submission of Individual Procurement Action Reports
(NASA Form 507 series) data.
[61 FR 40539, Aug. 5, 1996, as amended at 63
FR 32763, June 16, 1998; 67 FR 50823, Aug. 6,
2002]

1804.602 Federal Procurement Data
System. (NASA supplements paragraph (d))
(d) Code HC is responsible for requesting, obtaining, and reporting Contractor Establishment Codes to the
FPDS.
[61 FR 40539, Aug. 5, 1996, as amended at 63
FR 32763, June 16, 1998; 67 FR 50823, Aug. 6,
2002]

1804.670 Individual Procurement Action Report (NASA Form 507 series).
The Individual Procurement Action
Report and Supplements (NASA Form
507 series) provide essential procurement records and statistics through a
single uniform reporting program as a
basis for required recurring and special
reports to Congress, Federal Procurement Data Center, and other Federal
agencies. The preparation and utilization of the NASA Form 507 series are
integral parts of the agencywide Financial and Contractual Status (FACS)
system. The Headquarters Office of
Procurement issues Procurement Information Circulars (PICs) to—
(a) Identify the procurement actions
subject to reporting; and
(b) Provide instructions on preparation of the NASA Forms 507.
[67 FR 50823, Aug. 6, 2002]

1804.671 Committee
on
Academic
Science and Engineering (C.A.S.E.)
Report.
NASA Form 1356, C.A.S.E. Report on
College and University Projects, shall
be prepared for awards to nonprofit in-

stitutions of higher education or to
nonprofit institutions that are operationally affiliated or integrated with
an educational institution. Information on this form is used to produce reports required by the National Science
Foundation and to respond to inquiries. Submission is required regardless
of instrument type (contract, grant,
cooperative agreement, or funded
Space Act agreement) and type of proposal (solicited or unsolicited). Instructions appear on the form itself and constitute the detailed guidance for preparation and submission. The form,
which is either included with the acquisition package or initiated by the
contracting office, shall be completed,
reviewed, and promptly forwarded upon
award to the Headquarters Office of
Human Resources and Education (Code
FE).
[61 FR 40539, Aug. 5, 1996, as amended at 63
FR 32763, June 16, 1998]

Subpart 1804.8—Government
Contract Files
1804.802–70 Handling of classified material.
When a contract is unclassified, classified material relating to that contract shall be maintained in a separate
file folder and container, and the unclassified folder shall be marked to indicate the location of the classified
material. The front and back of each
folder containing classified material
shall be marked with the highest classification assigned to any document in
the folder.
1804.803

Contents of contract files.

1804.803–70 Checklist.
NASA Form 1098, Checklist for Contract Award File Content, shall be used
as the ‘‘top page’’ in contract files.
1804.804

Closeout of contract files.

1804.804–2 Closeout of the contracting
office files if another office administers the contract. (NASA supplements paragraph (b))
(b) Upon receiving the NASA Form
1611 or DD Form 1594, Contract Completion Statement, from the contract
administration office and complying

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National Aeronautics and Space Administration
with FAR 4.804–2(b), the contracting officer shall complete the form.
1804.804–5 Procedures for closing out
contract files.
(a) When the contracting office retains
contract
administration
(excluding acquisitions under the simplified acquisition threshold), the contracting officer must comply with FAR
4.804–5(a) by completing NASA Form
1612, Contract Closeout Checklist, and
DD Form 1593, Contract Administration Completion Record.
(b) To comply with FAR 4.804–5(b),
the contracting officer must complete
NASA Form 1611 or DD Form 1594, Contract Completion Statement, except
for acquisitions under the simplified
acquisition threshold.
[61 FR 40539, Aug. 5, 1996, as amended at 65
FR 31102, May 16, 2000]

1804.805 Storage, handling, and disposal of contract files. (NASA supplements paragraph (a))
(a) See NPG 1441.1C, Records Retention Schedules.
[61 FR 40539, Aug. 5, 1996, as amended at 64
FR 5620, Feb. 4, 1999]

1804.805–70 Review, separation, and
retirement of contract files.
(a) Upon determination of contract
completion under the procedures outlined in 1804.804, each office shall remove the official contract files from
the active file series, mark each file
folder with ‘‘Completed (Date)’’, and
place the folder in a completed
(inactive) contract file series. Separate
series should be established for contracts of $25,000 or less and for contracts of more than $25,000, to facilitate later disposal. Any original or official file copies of documents contained
in duplicate or ‘‘working’’ contract
files shall be removed and placed in the
appropriate official file; any remaining
material in the duplicate or ‘‘working’’
file shall be destroyed immediately or
segregated and marked for early disposal.
(b) Each office shall review contractor ‘‘general’’ files (i.e., a file containing documents relating generally
to a contractor rather than a specific
contract) at least once annually and
remove documents that—

1804.7002

(1) Are obsolete or superseded documents relating generally to the contractor (e.g., documents no longer pertinent to any aspect of a contractor’s
current or future capability, performance, or programs, and documents relating to a contractor that is no longer
a possible source of supplies, services,
or technical assistance) and dispose of
the documents as authorized in
1804.805; or
(2) Pertain only to completed contracts. Place those files that are not
routine in nature in inactive files for
later disposal, and immediately dispose
of routine documents as authorized in
NPG 1441.1C, Records Retention Schedules.
[61 FR 40539, Aug. 5, 1996, as amended at 64
FR 5620, Feb. 4, 1999]

Subpart 1804.9—Taxpayer
Identification Number Information
1804.904 Reporting payment information to the IRS.
Each NASA installation, that has its
own employer identification number,
may elect to report to the IRS payments under purchase orders and contracts for merchandise and other exempt bills.
[64 FR 1528, Jan. 11, 1999]

Subpart 1804.70—Transfer of
Contracting Office Responsibility
1804.7000

Scope of subpart.

This subpart contains policies and
procedures applicable to the transfer of
contracts between NASA installations.
1804.7001

Definition.

Transfer of a contract, as used in this
subpart, means that process whereby a
contract and all future responsibility
for a contract held by one installation
are transferred or reassigned in writing
to another installation.
1804.7002 Approval
quests.

of

transfer

(a) The approval authority for requests to transfer a contract is the official in charge of the cognizant Headquarters program office or designee.

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1804.7003

48 CFR Ch. 18 (10–1–02 Edition)

Requests for approval shall be submitted by the director of the transferring installation after receiving the
concurrence of the director of the receiving installation. Concurrence of
the Associate Deputy Administrator
(Code AI) is also required for a transfer
where an installation’s roles and missions may be affected.
(b) Approval of a program transfer by
the cognizant Headquarters official
constitutes approval to transfer program-related contracts.
1804.7003 Responsibilities of the contracting officer of the transferring
installation.
1804.7003–1

Coordinations.

The contracting officer of the transferring installation shall take the following steps before transferring the
contract:
(a) Agree on a plan and schedule with
the contracting officer of the receiving
installation for transferring contract
responsibility and contract files.
(b) Coordinate with the following offices:
(1) Financial Management Office, to
determine
the
contract
financial
records to be transferred and the method, timing, and dollar amount of such
transfers.
(2)
Technical
(Engineering
and
Project) Office, to determine the status
of
any
outstanding
engineering
changes.
(3) Reliability and Quality Assurance
Office, to determine status and method
of transferring the reliability and quality assurance functions.
(4) Industrial Property and Facilities
Office, to determine the method of
transferring the Government property
records.
(5) Transportation Office, to determine the status of bills of lading furnished the contractor.
(6) Security Office, to determine
whether any classified material is outstanding and whether special precautions are necessary during the
transfer process.
(7) Other organizational elements, to
determine the status of any other actions such as new technology, materials reports, PERT, and safety.

1804.7003–2

File inventory.

The contracting officer of the transferring installation shall prepare an inventory of the contract file. This inventory shall also include a separate
listing of all outstanding requests for
contract
administration
assistance
issued to other Government agencies,
indicating the name and address of the
agency office, functions requested to be
performed, estimated cost of the services, and estimated reimbursement due
the administration agency for the services yet to be performed for each requested function. Copies of this inventory shall be provided to the contracting officer of the receiving installation.
1804.7003–3

Notifications.

The contracting officer of the transferring installation shall provide written notification of the planned transfer
to the contractor and all agencies performing or requested to perform administration services.
1804.7003–4

Transfer.

(a) Upon completion of the actions
described
in
1804.7003–1
through
1804.7003–3, the contracting officer of
the transferring installation shall issue
a letter to the contractor, agencies performing contract administration functions, contracting officer representatives, and the contracting officer of the
receiving installation. This letter shall
provide notification of the transfer
date, termination of appointment of
the contracting officer’s representatives, and the name, mailing address,
and telephone number of the contracting officer of the receiving installation.
(b) After issuing the letters described
in 1804.7003–4(a), the contracting officer
of the transferring installation shall
send the contract file to the contracting officer of the receiving installation with a letter transferring contract responsibility. This letter shall
contain a provision for acceptance of
the responsibility for the contract and
its related files by the contracting officer of the receiving installation.

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National Aeronautics and Space Administration
1804.7003–5

Retention documentation.

The contracting officer of the transferring installation shall retain for permanent file a copy of the approvals and
concurrences required by 1804.7002, the
transfer acceptance letter of the contracting officer of the receiving installation, and any additional documents
necessary for a complete summary of
the transfer action.
1804.7004 Responsibilities of the contracting officer of the receiving installation.
1804.7004–1

Pre-transfer file review.

The contracting officer of the receiving installation shall review the contract, letters of request, actions in
process, and other related files and to
request corrective action, if necessary,
before the official transfer of the contract. This review may be waived by
written notification to the contracting
officer of the transferring installation.
1804.7004–2

Post-transfer actions.

The contracting officer of the receiving installation shall—
(a) Provide the contracting officer of
the transferring installation written
acceptance of contract responsibility
and receipt of the contract files;
(b) Inform all offices affected within
the installation of the receipt of the
contract;
(c) Appoint new contracting officer’s
technical representatives, as necessary;
(d) Issue a contract modification to
provide for the administrative changes
resulting from the transfer action (e.g.,
identifying offices responsible for performing contract administration and
making payment and the office to
which vouchers, reports, and data are
to be submitted);
(e) Provide copies of the contract
documents to affected installation offices; and
(f) If appropriate, supplement the letter of request to the Government agency providing contract administration
services to reflect the changes resulting from the transfer action. The supplement may terminate or amend an
existing contract administration support arrangement or may request support in additional areas.

1804.7102

Subpart 1804.71—Uniform Acquisition Instrument Identification
1804.7100 Scope of subpart.
This subpart contains the procedures
for uniform numbering of NASA solicitations, contracts (including letter
contracts), purchase orders (including
requests to other Government agencies), basic ordering agreements, other
agreements between the parties involving the payment of appropriated funds
or collection of funds for credit to the
Treasury of the United States, and
modifications or supplements to these
instruments.
1804.7101 Policy.
(a) Contractual documents shall be
numbered with approved prefixes and
serial numbers as prescribed in this
subpart. If other identification is required for center purposes, it shall be
placed on the document in such a location as to clearly separate it from the
identification number.
(b) The identification number shall
consist of not more than 11 alpha-numeric characters positioned as prescribed in this subpart and shall be retained unchanged for the life of the
particular instrument.
1804.7102 Prefixes.
(a) Approved prefixes are as follows:
Installation

Contract
prefix

Ames Research Center ...............
Dryden Flight Research Center ..
Glenn Research Center at Lewis
Field.
Goddard Space Flight Center .....
Headquarters ...............................
Lyndon B. Johnson Space Center.
John F. Kennedy Space Center
Langley Research Center ...........
George C. Marshall Space Flight
Center.
NASA Management Office-JPL ..
John C. Stennis Space Center ...
Space Station Program Office ....

NAS 2 .......
NAS 4 .......
NAS 3 .......

A
E
C

NAS 5 .......
NASW .......
NAS 9 .......

S
W
T

NAS10 ......
NAS 1 .......
NAS 8 .......

CC
L
H

NAS 7 .......
NAS13 ......
NAS15 ......

WO
NS
K

(b) The contract prefix shall be used
for the following documents:
(1) Contracts, including letter contracts, indefinite-delivery contracts,
utilities, leases of real property and renewals.
(2) Easements.
(3) Basic ordering agreements.

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1804.7103

48 CFR Ch. 18 (10–1–02 Edition)

(4) Other written agreements involving payment or receipt of funds not
covered by 1804.7102(e).
(c) Contracts totally funded under reimbursable arrangements with the department of Energy shall use a DEN
prefix instead of the NAS prefix (e.g.,
DEN 8 for Marshall).
(d) Space Act agreements awarded
under the authority of Section 203(c)(5)
or 203(c)(6) of the Space Act shall use
an NCA prefix instead of the NAS prefix (e.g., NCA 8 for Marshall).
(e) The purchase order prefix shall be
used for purchase orders (including
blanket purchase agreements) and requests to other Government agencies
to furnish supplies or services.
(f) Solicitations shall be numbered in
accordance with installation procedures, except that in all cases the identifying number shall begin with the
portion of the installation’s contract
prefix following ‘‘NAS.’’
(g) If a prefix is required for an installation or office not listed in this
section, a request for a prefix assignment shall be submitted to the Headquarters Office of Procurement (Code
HS).
[61 FR 40539, Aug. 5, 1996, as amended at 63
FR 32763, June 16, 1998; 64 FR 19926, Apr. 23,
1999]

1804.7103 Serial numbers.
(a) Installations shall number contracts and agreements identified in
1804.7102(b) serially by fiscal year. The
serial number shall be five digits beginning with a two-digit fiscal year identifier followed by a three digits commencing with ‘‘001’’ and continuing in
succession. For example, the first contracts awarded by Ames Research Center in fiscal year 1997 shall be numbered NAS 2 97001 and NAS 2 97002. Fiscal year identification is optional for
Space Act agreements.
(b) Serial numbers for purchase orders shall be assigned serially without
fiscal year identification. When the series of numbers exceeds five digits
(over 99,999), a new series shall be used,
beginning the series with number ‘‘1’’
and followed by the capital letter ‘‘A.’’
Should additional series become necessary, they will be distinguished by
the capital letters ‘‘B,’’ ‘‘C,’’ and so
forth, as may be required, except that

the letters ‘‘I’’ and ‘‘O’’ shall not be
used.
[61 FR 40539, Aug. 5, 1996, as amended at 66
FR 53546, Oct. 23, 2001]

1804.7104 Modifications
or agreements.

of

contracts

(a) Modifications of definitive or letter contracts or agreements shall (1)
bear the same identification as the
contract or agreement being modified
and (2) be numbered consecutively for
each contract or agreement, beginning
with Modification Number 1, regardless
of whether the modification is accomplished by unilateral or bilateral action. Except for termination notices,
modifications shall be effected by the
use of Standard Form 30, Amendment
of Solicitation/Modification of Contract.
(b) Definitive contracts superseding
letter contracts shall retain the same
contract number as that originally assigned to the letter contract. Actions
definitizing letter contracts are considered modifications and shall be assigned modification numbers in accordance with paragraph (a) of this section.

Subpart 1804.72—Review and Approval of Contractual Instruments
1804.7200 Contact
quarters.

review

by

(a) Requests for approval of contracts
and supplemental agreements by the
Assistant Administrator for Procurement shall be submitted to the Headquarters Office of Procurement (Code
HS) in sufficient time to allow a minimum of 15 days for review.
(b) Each request for approval shall be
accompanied by (1) five copies of the
contractual document, one of which
has been executed by the contractor
and contracting officer, and (2) the official contract file containing the appropriate documentation as set forth in
FAR 4.803(a). However, for the items
specified in FAR 4.803(a) (10), (11), and
(12), the contracting officer shall provide documentation pertaining only to
the successful offeror; and, in lieu of
the items specified in FAR 4.803(a)(26)
(ii) and (iii), the contracting officer

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National Aeronautics and Space Administration

1804.7403

shall provide an index briefly describing the content of all previous modifications.
(c) The approval required under this
section shall be made by signature of
the Assistant Administrator for Procurement on the contract/supplemental
agreement.

granted by the Chair of the Governing
Program Management Council or designee.

Subpart 1804.73—Procurement
Requests

SOURCE: 65 FR 50153, Aug. 17, 2000, unless
otherwise noted.

1804.7301 General.
(a) Except in unusual circumstances,
the contracting office shall not issue
solicitations until an approved procurement request (PR), containing a
certification that funds are available,
has been received. However, the contracting office may take all necessary
actions up to the point of contract obligation before receipt of the PR certifying that funds are available when—
(1) Such action is necessary to meet
critical program schedules;
(2) Program authority has been
issued and funds to cover the acquisition will be available prior to the date
set for contract award or contract
modification;
(3) The procurement officer authorizes such action in writing before solicitation issuance; and
(4) The solicitation includes the
clause at FAR 52.232–18, Availability of
Funds. The clause shall be deleted from
the resultant contract.
(b) The contracting office shall not
issue either a draft or final solicitation
until a PR, either planning or final,
has been received that contains an
NPG 7120.5 certification. That certification must be made by the project or
program office that initiated the PR,
or the PR approval authority when
there is no project or program office.
The certification must state that either—
(1) The requested action is not in support of programs and projects subject
to the requirements of NPG 7120.5, or
(2) The requested action is in support
of programs and projects subject to the
requirements of NPG 7120.5, and
(i) All NPG 7120.5 required documentation is current and has been approved; or
(ii) Authority to proceed without the
required documentation has been

[64 FR 14640, Mar. 26, 1999]

Subpart 1804.74—Central
Contractor Registration

1804.7400

Scope.

This subpart prescribes policies and
procedures for requiring contractor
registration in the DoD Central Contractor Registration (CCR) database.
1804.7401

Definitions.

‘‘Central Contractor Registration
(CCR) database,’’ ‘‘Data Universal
Numbering System (DUNS) number,’’
‘‘Data Universal Numbering System+4
(DUNS+4) number,’’ ‘‘Commercial and
Government Entity (CAGE) Code,’’ and
‘‘Registered in the CCR database’’ are
defined in the clause at 1852.204–74,
Central Contractor Registration.
1804.7402

Policy.

Prospective contractors must be registered in the CCR database, prior to
any award of a contract, purchase
order, basic agreement, basic ordering
agreement, or blanket purchase agreement. This policy applies to all types
of awards except the following:
(a) Purchases made with a Government-wide commercial purchase card.
(b) Awards made to foreign vendors
for work performed outside of the
United States.
(c) Purchases under FAR 6.302–2, Unusual and Compelling Urgency.
[65 FR 50153, Aug. 17, 2000, as amended

1804.7403

Procedures.

(a)(1) The contracting officer shall
verify that the prospective awardee is
registered in the CCR database using
either the Cage Code, DUNS number or,
if applicable, the DUNS+4 number, via
the Internet at http://www.ccr. gov or
by calling toll free: 888–CCR–2423 (888–
227–2423), commercial: 616–961–5757.
(2) Verification of registration is not
required for orders or calls placed
under contracts, basic agreements,

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1804.7404

48 CFR Ch. 18 (10–1–02 Edition)

basic ordering agreements, or blanket
purchase agreements in which vendor
registration was verified at the time of
award of the contract or agreement.
(b) If the contracting officer determines that a prospective awardee is
not registered in the CCR database, the
contracting officer shall —
(1) If delaying the acquisition would
not be to the detriment of the Government, proceed to award after the contractor is registered; or
(2) If delaying the acquisition would
be to the detriment of the Government,
proceed to award to the next otherwise
successful registered offeror, with the

written approval of the Procurement
Officer.
(c) The contracting officer shall protect against improper disclosure of
contractor CCR information.
[65 FR 50153, Aug. 17, 2000, as amended at 67
FR 30603, May 7, 2002; 67 FR 50823, Aug. 6,
2002]

1804.7404 Solicitation provisions and
contract clauses.
Except as provided in 1804.7402, the
contracting officer must use the clause
at 1852.204–74, Central Contractor Registration, in all solicitations and contracts, including those for commercial
items.

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SUBCHAPTER B—COMPETITION AND ACQUISITION
PLANNING
PART 1805—PUBLICIZING
CONTRACT ACTIONS
Subpart 1805.1—Dissemination of
Information
Sec.
1805.101 Methods of disseminating information.

Subpart 1805.2—Synopses of Proposed
Contracts
1805.205 Special situations.
1805.207 Preparation and transmittal of synopses.
1805.207–70 Synopses of Architect-Engineer
Services and Federal Information Processing Resources.

Subpart 1805.3—Synopses of Contract
Awards
1805.303 Announcement of contract awards.
1805.303–70 NASA Headquarters public announcement.
1805.303–71 Administrator’s notice of significant contract actions (ANOSCAs).

Subpart 1805.4—Release of Information
1805.402 General public.
1805.403 Requests from Members of Congress.

Subpart 1805.5—Paid Advertisements
1805.502

Authority.

AUTHORITY: 42 U.S.C. 2473(c)(1).
SOURCE: 61 FR 40543, Aug. 5, 1996, unless
otherwise noted.

Subpart 1805.1—Dissemination of
Information
1805.101 Methods of disseminating information.
(NASA
supplements
paragraph (b))
(b)(4) For NASA policy regarding
paid advertisements, see 1805.502.

Subpart 1805.2—Synopses of
Proposed Contracts
1805.205 Special
situations.
(NASA
supplements paragraph (a))
(a) Potential sources responding to
R&D advance notices shall be added to

the appropriate solicitation mailing
list for the subsequent solicitation and,
if they do not appear on the solicitation mailing lists established in accordance with FAR 14.205–1, shall be requested to submit Standard Form 129,
Solicitation Mailing List Application.
Responding sources on established lists
may be requested to submit amended
applications in order to reflect their
current capabilities.
1805.207 Preparation and transmittal
of synopses.
(a) Synopses shall be transmitted in
accordance with 1804.570.
[61 FR 40543, Aug. 5, 1996, as amended at 63
FR 9954, Feb. 27, 1998]

1805.207–70 Synopses of Architect-Engineer Services and Federal Information Processing Resources.
(a) Architect-engineering services. (1)
Each notice publicizing the acquisition
of architect-engineer services shall be
headed ‘‘C. Architect-Engineer Services.’’
(2) In addition to meeting the requirements of FAR 5.207(c), the project
description shall—
(i) State the relative importance the
Government attaches to the significant
evaluation criteria and the date by
which responses to the notice must be
received, including submission of
Standard Form 255, Architect-Engineer
and Related Services Questionnaire for
Specific Project, if required;
(ii) Describe any specialized qualifications, security classifications, and
limitations on eligibility for consideration;
(iii) Describe qualifications or performance data required from architectengineer firms; and
(iv) If the acquisition is to be set
aside for small business, state this fact,
indicating the specific size standard to
be used and requiring that eligible responding firms submit a small business
representation.
(3) Contracting officers shall add at
the end of the synopsis:

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1805.303

48 CFR Ch. 18 (10–1–02 Edition)

See Note 24. Provisions of Note 24 apply to
this notice except that (a) in the sentence
beginning ‘‘Selection of firms for negotiations,’’ the fourth additional consideration
listed is changed to read: ‘‘(4) past experience, if any, of the firm with respect to performance on contracts with NASA, other
Government agencies, and private industry;’’
and (b) in the last sentence, ‘‘National Aeronautics and Space Administration’’ is substituted for ‘‘Department of Defense.’’

(b) Federal Information Processing
(FIP) Resources. (1) When total requirement quantities are expected to
satisfy the needs of only a single field
installation, each notice publicizing
the acquisition of FIP resources under
an indefinite delivery/idenfinite quantity contract or under a contract that
includes options for additional quantities of such resources shall include
the following:
The ll (identify contracting activity) is
the primary delivery point for the items described in this synopsis. However, NASA
may order delivery to the following alternate locations: ll (List other NASA installations and their locations).

(2) When the contemplated contract
will authorize orders from locations
other than the awarding installation,
the notice shall fully describe the ordering scope.

Subpart 1805.3—Synopses of
Contract Awards
1805.303 Announcement of contract
awards. (NASA supplements paragraph (a))
(a)(i) In lieu of the $3 million threshold cited in FAR 5.303(a), NASA Headquarters public announcement is required for award of contract actions
that have a total anticipated value, excluding unexercised options, of $25 million or greater. This threshold applies
to new awards, contract modifications,
and option exercises, but not to incremental funding or cost overrun modifications.
(A) For undefinitized contract actions, the not-to-exceed (NTE) or ceiling price value is the face value.
(B) For indefinite delivery, time and
material, labor hour, and similar contracts, the estimated amount of the
basic contract is the face value. Individual orders up to the face value shall

not be announced regardless of value.
However, after the face value is
reached, any subsequent modifications
or orders of $25 million or greater must
be announced.
(ii) NASA Headquarters public announcement is also required for award
of a contract action with a value of less
than $25 million if the contracting officer believes it to have Agency public
information implications.
(iii) Contractual instruments requiring Headquarters public announcement
shall not be distributed nor shall any
source outside NASA be notified of
their status until the public announcement procedures in 1805.303–70 have
been completed.
1805.303–70 NASA Headquarters public announcement.
(a) For those contract actions requiring Headquarters public announcement
in accordance with 1805.303, the contracting officer shall furnish a draft
news release including the following
information, through the installation
Public Affairs Office, via facsimile
transmission to the Headquarters Office of Public Affairs, News and Imaging Branch (Code PM):
(1) A brief description of the work,
including identification of the program
and project;
(2) Identification of the contract action as either a new contract or additional work of services under an existing contract;
(3) Contract type. For undefinitized
contract actions, identify the planned
contract type of the definitized instrument;
(4) The dollar amount authorized for
the instant action and the estimated
total cost of the contract if this is different. For undefinitized contract actions, indicate the NTE or ceiling price
amount;
(5) Name and address (including zip
code) of the contractor;
(6) Principal work performance locations;
(7) Names and addresses of any unsuccessful offerors.
(b) The information in paragraph (a)
of this section shall be provided to
Code PM before transmitting a letter
contract to a contractor for signature.

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National Aeronautics and Space Administration
For actions other than letter contracts, the information should be
transmitted to Code PM after contractor signature, if applicable, no
later than 48 hours before the planned
award.
(c) For contract actions requiring
Headquarters approval in accordance
with 1804.72, the draft news release required by paragraph (a) of this section
shall be provided to the Headquarters
Office of Procurement (Code HS) with
the request for approval. Code HS will
forward the information to Code PM
after approval.
(d) Code PM will advise the installation Public Affairs Office of the date
public announcement of the contract
action will be made. Installations may
proceed with award and local release of
the information no earlier than 4:00
p.m. ET of the date Code PM makes
public announcement. If earlier award
is considered appropriate, installations
must request authorization from the
Assistant Administrator for Procurement (Code HS).
1805.303–71 Administrator’s notice of
significant
contract
actions
(ANOSCAs).
(a) In addition to the public announcement requirements described in
1805.303–70, contracting officers shall
notify the Administrator of the following significant actions at least five
(5) workdays prior to planned public
announcement of the actions:
(1) Planned contract award for competitive acquisitions of $25 million or
more, including all priced options.
(2) Planned contract award of noncompetitive awards and new work
modifications of $100 million or more,
including all priced options.
(3) Planned award of other actions, to
include cooperative agreements resulting from a Cooperative Agreement Notice (CAN), at any dollar value thought
to be of significant interest to Headquarters.
(b) To provide notification to the Administrator, the contracting officer
shall send the information listed in
paragraphs (b) (1) through (10) of this
subsection to the Headquarters Office
of Procurement (Code HS) via facsimile

1805.303–71

transmission
(202–358–4065).
Immediately prior to transmission, the contracting officer shall notify Code HS by
telephone of the impending transmission. In accordance with FAR 3.104–
5(c), the contracting officer shall mark
all pages that include source selection
information with the legend ‘‘SOURCE
SELECTION
INFORMATION—SEE
FAR 3.104.’’ The following information
shall be sent:
(1) Title and a brief nontechnical description of the work, including identification of the program or project;
(2) Identification of the contract action as either a new contract or additional supplies or services under an existing contract;
(3) Contract type (including whether
a cost contract is completion or levelof-effort). For undefinitized contract
actions, identify the planned contract
type of the definitized instrument;
(4) The total contract value for the
instant action including all priced options. Also include the Government’s
most probable cost. For undefinitized
contract actions, indicate the NTE or
ceiling price amount;
(5) The name, address, and business
size status of the prime contractor and
each major (over $1M) subcontractor;
(6) Small business and small disadvantaged business subcontracting
goals both in dollars and percentage of
the value of the action including all options;
(7) Principal work performance locations;
(8) Brief description of any unusual
circumstances;
(9) The names and telephone numbers
of the contracting officer and project
manager; and
(10) For competitive selections only,
provide on a separate attachment the
names and addresses of all unsuccessful
offerors and a brief explanation of the
general basis for the selection.
(c) The field installation shall not
proceed with any awards or announcements until Code HS has advised that
the Administrator has been notified of
the proposed action and the supporting

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1805.402

48 CFR Ch. 18 (10–1–02 Edition)

information. Once this advice is received from Code HS, the field installation shall proceed with the public announcement procedures described in
1805.303–70.
[61 FR 40543, Aug. 5, 1996, as amended at 62
FR 4466, Jan. 30, 1997; 63 FR 43099, Aug. 12,
1998]

Subpart 1805.4—Release of
Information
1805.402 General public. (NASA paragraphs (1) and (2)
(1) Unless the head of the contracting
activity determines that disclosure
would be prejudicial to the interests of
NASA, the following information on
NASA acquisitions may be released:
(i) The names of firms invited to submit offers, and
(iii) The names of firms that attended any pre-bid or pre-proposal conferences.
(2) Other requests for information
under the Freedom of Information Act
shall be processed in accordance with
FAR 24.2 and 1824.2.
[62 FR 14016, Mar. 25, 1997]

1805.403 Requests from Members of
Congress. (NASA supplements paragraph (a))
(a) All proposed replies to congressional inquiries shall be prepared and
forwarded, with full documentation, to
the Headquarters Office of Legislative
Affairs (Code L) for approval and release.

Subpart 1805.5—Paid
Advertisements
1805.502 Authority.
Use of paid advertisements for procurement purposes (except CBD announcements) is not authorized in
NASA.

PART 1806—COMPETITION
REQUIREMENTS
Subpart 1806.2—Full and Open
Competition After Exclusion of Sources
Sec.
1806.202 Establishing or maintaining alternative sources.

1806.202–70

Formats.

Subpart 1806.3—Other Than Full and Open
Competition
1806.302 Circumstances permitting other
than full and open competition.
1806.302–4 International agreement.
1806.302–470 Documentation.
1806.302–7 Public interest.
1806.303 Justifications.
1806.303–1 Requirements.
1806.303–170 Sole-source purchases by contractors.
1806.303–2 Content.
1806.303–270 Use of unusual and compelling
urgency authority.
1806.304–70 Approval of NASA justifications.

Subpart 1806.5—Competition Advocates
1806.501
1806.502

Requirement.
Duties and responsibilities.

AUTHORITY: 42 U.S.C. 2473(c)(1).
SOURCE: 61 FR 40545, Aug. 5, 1996, unless
otherwise noted.

Subpart 1806.2—Full and Open
Competition After Exclusion of
Sources
1806.202 Establishing or maintaining
alternative sources. (NASA supplements paragraphs (a) and (b))
(a) The authority of FAR 6.202 is to
be used to totally or partially exclude
a particular source.
(b) The supporting data and the D&F
must name the source to be excluded
and shall include the following information as applicable and any other relevant information:
(i) The specific purpose to be served
in excluding the source as enumerated
in FAR 6.202(a).
(ii) The acquisition history of the
supplies or services, including sources,
prices, quantities, and dates of award.
(iii) The circumstances making it
necessary to exclude a particular
source from the contract action:
(A) Reasons for lack of sources; e.g.,
the technical complexity and criticality of the item.
(B) Current annual requirement and
prospective needs for the supplies and
services.
(C) Projected future requirements.
(iv) Whether the existing source must
be totally excluded from the action or

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National Aeronautics and Space Administration
whether a partial exclusion is sufficient.
(v) The potential effect of exclusion
on the excluded source in terms of any
loss of capability to furnish the supplies or services in subsequent contract
actions.
(vi) When the authority of FAR
6.202(a)(1) is cited, the basis for—
(A) Assumptions regarding future
competition; and
(B) The determination that exclusion
of a particular source will likely result
in reduced overall costs for anticipated
future acquisitions, including (as a
minimum) discussion of start-up costs,
costs associated with facilities, duplicative administration costs (such as for
additional inspection or testing), economic order quantities, and life-cyclecost considerations.
(vii) When an additional source or additional sources must be established to
provide production capacity to meet
current and mobilization requirements—
(A) The current annual and the mobilization requirements for the item, citing the source of, or the basis for, the
planning data;
(B) A comparison of current production capacity with current and mobilization requirements; and
(C) The hazards of relying on the
present source and the time required
for new sources to acquire the necessary facilities and skills and achieve
the production capacity necessary to
meet requirements.
§ 1806.202–70

Formats.

A sample format for D&Fs citing the
authority of FAR 6.202(a) follows:
National Aeronautics and Space
Administration, Washington, DC 20546
Determination and Findings
Authority to Exclude a Source
On the basis of following findings and determination, which I make under the authority of 10 U.S.C. 2304(b)(1) as implemented by
FAR 6.202, the proposed contract action described below may be awarded using full and
open competition after exclusion oflll(1).
FINDINGS
1. It is proposed that the following requirement be acquired using full and open com-

§ 1806.202–70

petition after exclusion of the source identified above.
2. The source identified above can be expected to receive an award for this requirement unless excluded.
3. It is necessary to establish or maintain
an alternative source or sources.
4. The exclusion of this source will increase
or maintain competition and is likely to result in reduction of lll(2) in overall costs
for any anticipated acquisition of the supplies or services being acquired. This estimate is based on lll (3).
(See Note 4 for the use of Alternates I and
II below.)
Alternate I: The exclusion of this source
will serve the national defense interest by
having an alternative supplier available for
furnishing the supplies or services being acquired, in case of a national emergency or industrial mobilization, becauselll(5).
Alternate II: The exclusion of this source
will serve the national defense interest by
establishing or maintaining an essential engineering, research, or development capability of an educational or other nonprofit
institution or a federally funded research
and development center, becauselll(5).
DETERMINATION
The exclusion of the source identified
above will increase or maintain competition
and is likely to result in reduced overall
costs for any anticipated acquisition of the
supplies or services being acquired.
(See Note 4 for the use of Alternates I and
II below.)
Alternate I: It is in the interest of the national defense to exclude the source identified above in order to have an alternative
supplier available for furnishing the supplies
or services being acquired, in case of a national emergency or industrial mobilization.
Alternate II: It is in the interest of national defense to exclude the source identified above in order to establish or maintain
an essential engineering, research, or development capability to be provided by an educational or other nonprofit institution or a
federally funded research and development
center.
Datellllll
NOTES:
1. Name of source to be excluded.
2. Description of estimated reduction in
overall costs.
3. Description of how estimate was derived.
4. In paragraph 4 and in the Determination,
the basic wording is appropriate when FAR
6.202(a)(1) applies; Alternate I is appropriate
when FAR 6.202(a)(2) applies; and Alternate
II is appropriate when FAR 6.202(a)(3) applies.
5. Description of circumstances necessitating the exclusion of the identified source.

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§ 1806.302

48 CFR Ch. 18 (10–1–02 Edition)

Subpart 1806.3—Other Than Full
and Open Competition
§ 1806.302 Circumstances
permitting
other than full and open competition.
§ 1806.302–4

International agreement.

§ 1806.302–470

Documentation.

Pursuant to 10 U.S.C. 2304(f)(2)(E), an
individual justification for other than
full and open competition under the
authority of FAR 6.302–4 is not required
when the procurement officer signs a
Memorandum for the Record that:
(a) Describes the specific terms of the
international agreement or treaty that
limit acquisitions in support of, or as a
result of, the agreement or treaty to
less than full and open competition;
and
(b) Is included in each official contract file in the place for filing a Justification for Other than Full and Open
Competition (see NASA Form 1098).
[61 FR 40545, Aug. 5, 1996, as amended at 63
FR 12997, Mar. 17, 1998; 63 FR 32763, June 16,
1998]

the technical office does not make such
a recommendation.
(d) The contracting officer shall send
a copy of each approved justification or
D&F that cites the authority of FAR
6.302–3(a)(2)(i) or FAR 6.302–7 to NASA
Headquarters, Office of Procurement
(Code HK), unless one of the exceptions
at FAR 25.401 applies to the acquisition. The transmittal shall indicate
that the justification is being furnished
under FAR 6.303–1(d).
[61 FR 40545, Aug. 5, 1996, as amended at 64
FR 48561, Sept. 7, 1999; 65 FR 10031, Feb. 25,
2000; 65 FR 31102, May 16, 2000]

1806.303–170 Sole-source purchases by
contractors.
The requirements of FAR part 6 and
this part 1806 apply if NASA directs a
prime contractor (by specifications,
drawings, parts lists, or otherwise) to
purchase items on a sole-source basis.
Accordingly,
procurement
officers
shall take necessary actions to ensure
that such sole-source acquisitions are
properly justified.
[61 FR 40545, Aug. 5, 1996, as amended at 67
FR 30603, May 7, 2002]

1806.302–7 Public interest. (NASA supplements paragraph (c))

1806.303–2

(c)(2) The notice to Congress shall be
made by NASA Headquarters, Office of
Legislative Affairs (Code L). Code HS
shall request the notice to be made immediately upon approval of a D&F and
shall advise the contracting activity of
the date upon which the notification
period ends.
(3) The contracting officer shall prepare the D&F required by FAR 6.302–
7(c)(1) in any format that clearly documents the determination and the supporting findings.

1806.303–270 Use of unusual and compelling urgency authority.

[61 FR 40545, Aug. 5, 1996, as amended at 65
FR 12484, Mar. 9, 2000]

1806.303

Justifications.

1806.303–1 Requirements. (NASA supplements paragraphs (b) and (d))
(b) Justifications for using less than
full and open competition may be prepared by the technical office initiating
the contract action when it is recommending the use of the justification authority, or by the contracting officer if

Content.

If the authority at FAR 6.302–2 is
used for extending the performance period of an existing services contract,
the justification shall contain the information required by FAR 6.303–2 and;
(a) Documentation that the acquisition process for the successor contract
was started early enough to allow for
adequately planning and conducting a
full and open competition, together
with a description of the circumstances
that prevented award in a timely manner; and
(b) Documentation of the reasons
why no other source could practicably
compete for the interim requirement.
1806.304–70 Approval
tifications.

of

NASA

Concurrences and approvals for justifications of contract actions conducted in accordance with FAR subparts 6.2 and 6.3 shall be obtained as
follows:

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National Aeronautics and Space Administration
(a) For proposed contracts over
$500,000 but not exceeding $10,000,000—
(1) Concurring official: Procurement
Officer
(2) Approving official: Center or
Headquarters Competition Advocate.
(b) For proposed contracts over
$10,000,000
but
not
exceeding
$50,000,000—
(1) Concurring officials:
(i) Procurement Officer
(ii) Center or Headquarters Competition Advocate
(2) Approving official: Center Director or Director for Headquarters Operations.
(c) For proposed contracts over
$50,000,000—
(1) Concurring officials:
(i) Procurement Officer
(ii) Center or Headquarters Competition Advocate
(iii) Center Director or Director for
Headquarters Operations
(iv) Agency Competition Advocate
(2) Approving Official: Assistant Administrator for Procurement
(d) The approval authority of FAR
6.304(a)(3) may not be delegated to
other than the installation’s Deputy
Director.
(e) For proposed contract actions requiring approval by the Assistant Administrator for Procurement, the original justification shall be forwarded to
the Assistant Administrator for Procurement (Code HS).
(f) Regardless of dollar value, class
justifications shall be approved by the
Assistant Administrator for Procurement.

Pt. 1807

vocate for the Headquarters contracting activity.
(4) The Deputy Manager is the contracting activity competition advocate
for the Space Station Program Office.
[61 FR 40545, Aug. 5, 1996, as amended at 64
FR 10571, Mar. 5, 1999]

1806.502 Duties and responsibilities.
(NASA supplements paragraph (b))
(b)(i) Center competition advocates
shall submit annual reports to the
agency competition advocate (Code
HS) on or before November 30.
(ii) The agency competition advocate
shall submit an annual agency report
on or before January 31.

PART 1807—ACQUISITION
PLANNING
Subpart 1807.1—Acquisition Plans
Sec.
1807.103 Agency-head responsibilities.
1807.104 General procedures.
1807.105 Contents of written acquisition
plans.
1807.107 Additional requirements for acquisitions involving bundling.
1807.107–70 Orders against Federal Supply
Schedule contracts, Governmentwide acquisition contracts (GWACs), or other existing indefinite-delivery contracts.
1807.170 Acquisition
Strategy
Meeting
(ASM).

Subpart 1807.2—Planning for the Purchase
of Supplies in Economic Quantities
1807.204 Responsibilities of contracting officers.

Subpart 1807.3—Contractor Versus
Government Performance

Subpart 1806.5—Competition
Advocates

1807.307

1806.501 Requirement. (NASA paragraphs (1), (2), (3) and (4))
(1) The Deputy Assistant Administrator for Procurement is the agency
competition advocate, reporting to the
Associate Deputy Administrator on
issues related to competition of NASA
acquisitions.
(2) The Center Deputy Directors or
Associate Directors are the competition advocates for their contracting activities.
(3) The Headquarters Chief Financial
Officer, Code CF, is the competition ad-

Appeals.

Subpart 1807.5—Inherently Governmental
Functions
1807.503

Policy.

Subpart 1807.70—Consolidated
Contracting
1807.7000

General.

Subpart 1807.71—Master Buy Plan
1807.7100 General.
1807.7101 Applicability.
1807.7102 Submission, selection, and notification procedures.

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1807.103

48 CFR Ch. 18 (10–1–02 Edition)

1807.7102–1 Submission of Master Buy Plan.
1807.7102–2 Submission of amendments to
the Master Buy Plan.
1807.7102–3 Selection and notification procedures.
1807.7103 Format of Master Buy Plan.

Subpart 1807.72—Acquisition Forecasting
1807.7200
1807.7201
1807.7202
1807.7203
1807.7204
1807.7205

Scope of subpart.
Definitions.
Policy.
Responsibilities.
Forecast data.
Public availability.

AUTHORITY: 42 U.S.C. 2473(c)(1).
SOURCE: 61 FR 47068, Sept. 6, 1996, unless
otherwise noted.

Subpart 1807.1—Acquisition Plans
1807.103 Agency-head responsibilities.
(NASA supplements paragraphs (d)
and (e))
(d)(i) Except as provided in paragraph
(d)(iii) of this section, acquisition plans
shall be prepared according to the following:
(A) For acquisitions requiring Headquarters approval, by an Acquisition
Strategy Meeting (ASM) (see 1807.170);
(B) For acquisitions not requiring
Headquarters approval and expected to
exceed $5 million, by installation-approved ASMs or written acquisition
plans; and,
(C) For acquisitions not expected to
exceed $5 million, in accordance with
installation procedures.
(ii) The estimated dollar amounts
shall include all options and later
phases of the same program or project.
(iii) Acquisition plans are not required for the following acquisitions:
(A) Architect-engineering services;
(B) Broad agency announcements (see
1835.016) or unsolicited proposals;
(C) Basic research from nonprofit organizations;
(D) Utility services available from
only one source;
(E) From or through other Government agencies except when the value of
the acquisition meets the Master Buy
Plan threshold (see 1807.7101(a));
(F) Industrial facilities required in
support of related contracts; or
(G) MidRange procedure awards (see
part 1871). However, acquisition plans
are required for commercial item acquisitions that exceed the MidRange

dollar thresholds for noncommercial
items.
(iv) Acquisition plans shall be approved before soliciting proposals.
(v) Approval of an acquisition plan
does not constitute approval of any
special conditions, or special clauses
that may be required unless the plan so
specifies, and the individual having approval authority is a signatory of the
plan. All required deviations shall be
approved through the procedures described in FAR 1.4 and 1801.4.
(vi) A single acquisition plan may be
used for all phases of a phased acquisition provided the plan fully addresses
each phase, and no significant changes
occur after plan approval to invalidate
the description of the phases. If such
significant changes do occur, the plan
shall be amended and approved at the
same level as the original plan.
(e) Acquisition plans should be prepared on a program or system basis
when practical. In such cases, the plan
should fully address all component acquisitions of the program or system.
[61 FR 47068, Sept. 6, 1996, as amended at 65
FR 45306, July 21, 2000]

1807.104 General procedures (NASA
supplements paragraph (a)).
(a) The acquisition planning team
shall obtain input from the center offices responsible for matters of safety
and mission assurance, occupational
health, environmental protection, information technology, export control,
and security. Their presence on the
team shall help to ensure that all
NASA acquisitions are structured in
accordance with NASA safety, occupational health, environmental, export
control, and security policy. As part of
this process, the team shall recommend
any appropriate solicitation or contract requirements for implementation
of safety, occupational health, environmental, information technology, export control, and security concerns
(See NPG 8715.3, NASA Safety Manual;
NPG 7120.5, NASA Program and Project
Management Processes and Requirements; NPG 2810.1, Security of Information Technology, and NPG 1620.1,
Security Procedures and Guidelines, all
available at www.nodis.hq.nasa.gov).
[65 FR 37058, June 13, 2000]

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National Aeronautics and Space Administration
1807.105 Contents of written acquisition plans. (NASA supplements
paragraphs (a) and (b))
Acquisition plans shall address each
applicable topic listed in FAR 7.105, as
supplemented by this section. Plans
shall be structured by subject heading
using each italicized topic heading in
the same sequence as presented in the
FAR. Subheadings should be used when
appropriate (e.g., the separate items
under contracting considerations at
7.105(b)(4)). Topics not applicable to a
given acquisition (e.g., design-to-cost
and should-cost are not compatible
with service acquisitions), should be
marked N/A. The requirements in FAR
7.105 regarding performance-based contracting methods shall not be limited
to acquisition plans for service contracts.
(a)(1) Describe in nontechnical terms
the supplies or services to be acquired.
Include quantities.
(2) NPG 7120.5 shall be an integral
part of acquisition planning for programs and projects subject to its requirements. If the NPG does not apply,
the acquisition plan shall clearly state
that fact. If the NPG does apply, specify whether all required NPG 7120.5 documentation is current and approved
(see 1804.7301(b)(2)(i)). If not, describe
the approach for obtaining approval or
the authority to proceed without approval before release of draft or final
solicitations.
For
programs
and
projects under the NPG, all draft or
final solicitations subject to, or directly or substantially in support of,
those programs or projects shall clearly identify the program or project of
which they are part.
(3) Identify the estimated cost and
describe the estimating methodology.
(5) Specify the delivery or performance period requirements separately by
the basic contract, each option, and
the total.
(7) Discuss project/program risks (see
NPG 7120.5, NASA Program and Project
Management Processes and Requirements). In addition to technical, schedule, and cost risks, the discussion shall
include such considerations as: safety
and security (including personnel, information technology, and facilities/
property); the need to involve foreign
sources (contractor and/or govern-

1807.105

mental), and risks of unauthorized
technology transfer (see NPD 2110.1D
and Export Control Program (http://
www.hq.nasa.gov/office/codei/nasaecp/
ecpolicy.html)); and resource risk, including the necessary level and expertise of NASA personnel resources available to manage the project/program.
For each area of risk identified, the
discussion shall include a quantification of the relative magnitude (e.g.,
high, medium, low) together with the
specific actions taken to structure the
acquisition approach to manage the
risks throughout the acquisition process. For example, this discussion would
identify those areas that have safety
risk, discuss how safety is addressed in
contract requirements and evaluated in
the source selection, and how it will be
managed and incentivized during contract performance. Decisions to accept,
mitigate, track, and/or research risk
factors shall be identified and documented as part of acquisition planning.
(8) Streamlining applies to all NASA
acquisitions. Describe all planned
streamlining procedures.
(b)(3) Address how cost realism will
be evaluated.
(4)(A) If an incentive contract is
planned, describe the planned incentive(s) and the anticipated effects.
(B) Describe subcontracting issues,
including all applicable subcontracting
goals. (See FAR part 19 and part 1819).
(5)(A) Identify the estimated cost
separately by the basic contract, each
option and total amount.
(B) Identify the funding by fiscal
year and unique project number (UPN).
(C) Discuss planned approaches to
eliminate funding shortfalls (vs. the estimated cost).
(6) Identify the type of work statement/specification planned. Specifically address the applicability of performance-based requirement descriptions and the availability of commercial sources for the supplies/services.
(b) (10) Address contract management
issues, including—
(A) Planned delegations of administrative functions; and
(B) When contract changes are anticipated, the plan to manage such
changes and the specific measures that
will be taken to minimize the issuance
of undefinitized contract actions.

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1807.107

48 CFR Ch. 18 (10–1–02 Edition)

(20) If the period between release of
solicitation to contract award is more
than 120 calendar days (180 days for formal SEB competitions), explain why
that goal cannot be met.
[61 FR 47068, Sept. 6, 1996, as amended at 62
FR 36705, July 9, 1997; 62 FR 58687, Oct. 30,
1997; 63 FR 12997, Mar. 17, 1998; 64 FR 14641,
Mar. 26, 1999; 65 FR 37058, June 13, 2000; 65 FR
70315, Nov. 22, 2000; 65 FR 82296, Dec. 28, 2000;
66 FR 53546, Oct. 23, 2001]

1807.107 Additional requirements for
acquisitions involving bundling.
(c) Requests for approval of proposed
bundlings that do not meet the thresholds in FAR 7.107(b) must be sent to the
Headquarters Office of Procurement
(Code HS).
(e) The substantial bundling documentation requirement applies to each
proposed NASA bundling expected to
exceed $5 million or more. The contracting officer must forward the documentation along with the measurable
benefits analysis required by FAR
7.107(b) to the Headquarters Office of
Procurement (Code HS) in sufficient
time to allow a minimum of 10 days for
review.
[65 FR 46876, Aug. 1, 2000]

1807.107–70 Orders against Federal
Supply Schedule contracts, Governmentwide
acquisition
contracts
(GWACs), or other existing indefinite-delivery contracts.
The FAR and NFS requirements for
justification, review, and approval of
bundling of contract requirements also
apply to an order from a Federal Supply Schedule contract, Governmentwide acquisition contract, or other indefinite-delivery contract if the requirements consolidated under the
order meet the definition of ‘‘bundling’’
at FAR 2.101.
[65 FR 46876, Aug. 1, 2000]

1807.170 Acquisition Strategy Meeting
(ASM).
(a) The ASM is an acquisition plan
conducted through a meeting attended
by all interested NASA offices. At the
meeting, the acquisition plan topics
and structure specified in 1807.105 are
presented in briefing format, and formal written minutes prepared to sum-

marize the decision, actions, and conclusions of the ASM members. The approved minutes, along with the briefing
charts, shall be included in the contract file to document completion of
the acquisition plan required by
1807.103.
(b) The ASM is not a requirements
definition meeting. It is a meeting to
seek approval for the proposed acquisition approach for requirements that
were previously defined and agreed to
by the cognizant offices.
(c) Headquarters ASMs will be
chaired by the Assistant Administrator
for Procurement or designee. The
Headquarters Office of Procurement
(Code HS) will prepare the minutes of
Headquarters ASMs and distribute
them to all attendees for review prior
to approval by the ASM chairperson.
(d) For field installation ASMs, the
minutes shall be approved in accordance with installation procedures.

Subpart 1807.2—Planning for the
Purchase of Supplies in Economic Quantities
1807.204 Responsibilities
tracting officers.

of

(NASA supplements paragraph (a))
(a) The contracting officer shall
transmit in writing to the cognizant
inventory
management/requirements
office either the actual offeror responses or a summary of their salient
points. The transmittal should be made
within five working days after the closing date for receipt of offers; however,
if a response indicates the potential for
a significant savings, it should be
transmitted immediately.

Subpart 1807.3—Contractor Versus
Government Performance
1807.307 Appeals. (NASA supplements
paragraph (a))
(a) Installations shall establish appeals procedures in accordance with
NMI 7410.3, Delegation of Authority for
Acquisition of Commercial Activities
for NASA’s Use.

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National Aeronautics and Space Administration

1807.7102–1

[62 FR 36705, July 9, 1997, as amended at 63
FR 32763, June 16, 1998; 65 FR 45306, July 21,
2000]

tions regardless of dollar value and all
acquisitions over $50,000,000.
(c) The procedure also applies to:
(1) Any supplemental agreement that
contains either new work, a debit
change order, or a credit change order
(or
any
combination/consolidation
thereof), if the absolute value of the actions equals or exceeds $50,000,000 (e.g.,
the absolute value of a supplemental
agreement adding $30,000,000 of new
work and deleting $30,000,000 of work is
$60,000,000, and is therefore subject to
the Master Buy Plan).
(2) Any supplement agreement that
contains one or more elements (new
work and/or individual change orders)
of a sensitive nature that, in the judgment of the installation or Headquarters, warrants Headquarters consideration under the Master Buy Plan,
even though the value does not equal
or exceed $50,000,000.
(3) Any cooperative agreement notice
where the total value (the Government’s contribution plus the contribution of the recipient) of any resulting
cooperative agreement is expected to
equal or exceed $50,000,000.
(4) Any acquisition designated by
NASA Headquarters regardless of its
value.
(d) The Master Buy Plan does not
apply to incremental funding actions
or termination settlement agreements.

Subpart 1807.71—Master Buy Plan

[61 FR 47068, Sept. 6, 1996, as amended at 65
FR 45306, July 21, 2000]

Subpart 1807.5—Inherently
Governmental Functions
1807.503 Policy. (NASA supplements
paragraph (e))
(e) The field installation requirements office shall provide the contracting officer the written determination that none of the statement of
work tasks are inherently governmental. Disagreements regarding the
determination shall be resolved in accordance with installation procedures.

Subpart 1807.70—Consolidated
Contracting
1807.7000 General.
The Consolidated Contracting Initiative (CCI) is NASA’s commitment to
the cooperative creation and utilization of contracts, whenever practicable, to meet common Agency
needs. CCI aims at improving acquisition efficiency by identifying and logically combining similar requirements.
Complete information on the initiative, with its implementation guidance, is available on the Internet (http:/
/procurement.nasa.gov/cgi-bin/CCI/
first.cgi).

1807.7100 General.
The Master Buy Plan provides information on planned acquisitions to enable management to focus its attention
on a representative selection of highdollar-value and otherwise sensitive
acquisitions.
1807.7101 Applicability.
(a) The Master Buy Plan applies to
each negotiated acquisition, including
supplemental agreements and acquisitions through or from other Government agencies, where the dollar value,
including the aggregate amount of options, follow-on acquisitions, or later
phases of multi-phase acquisitions, is
expected to equal or exceed $50,000,000.
(b) For initial annual Master Buy
Plan submission only, each installation
shall submit its three largest acquisi-

1807.7102 Submission, selection, and
notification procedures.
1807.7102–1 Submission of Master Buy
Plan.
(a) Prior to July 15th of every year,
each installation shall submit to the
Headquarters Office of Procurement
(Code HS) a Master Buy Plan
(electronically or original and eight
copies) for the next fiscal year, listing
every known acquisition that
(1) Meets the criteria in 1807.7101,
(2) Is expected to be initiated in that
fiscal year, and
(3) Has not been included in a previous Master Buy Plan or amendment
to a Master Buy Plan.
(b) The fiscal year Master Buy Plan
shall list all uncompleted acquisitions
selected for Headquarters review and

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1807.7102–2

48 CFR Ch. 18 (10–1–02 Edition)

approval from prior Master Buy Plans
and amendments to Master Buy Plans.
These acquisitions should be listed by
the appropriate fiscal year Master Buy
Plan and individual item numbers, and
should indicate the current status of
the individual acquisition documents
previously selected for Headquarters
review and approval.
(c) Plans shall be prepared in accordance with 1807.7103 and shall identify
the individual acquisition documents
involved for every acquisition listed.
Acquisition documents that may require Headquarters approval will be
held in abeyance until receipt of the
notification required by 1807.7102–3.
This is not to preclude the planning for
or initiation of such documents up to
that point where Headquarters approval may be required.
1807.7102–2 Submission
of
amendments to the Master Buy Plan.
(a) Acquisitions identified by installations after submission of their Master Buy Plan and meeting the criteria
in 1807.7102–1(a) shall be submitted to
Headquarters
in
accordance
with
1807.7103 and identified as an amendment to the fiscal year Master Buy
Plan submission.
(b) Master Buy Plan submissions
should not be accomplished after the
fact. Amendments shall be submitted
sufficiently in advance of contract
award date to allow Headquarters to
select those acquisition documents
that will be subject to Headquarters review and approval without creating an
unacceptable delay in contract placement.
(c) When timely submittal is not possible, the installation shall provide
with the amendment a narrative explaining the circumstances leading to
the late submittal. A Master Buy Plan
submission for a contract change order
expected to meet the criteria in
1807.7101 shall be submitted to Headquarters immediately upon issuance of
the change order.
1807.7102–3 Selection and notification
procedures.
(a) The Headquarters Office of Procurement (Code HS) shall select acquisition documents from the Master Buy
Plan and amendments to Master Buy

Plans to receive Headquarters review
and approval and shall designate
source selection officials.
(b) When, subsequent to document selection or delegation, an acquisition is
changed (for example, increase or decrease in dollar amount, change in requirement), canceled, superseded, deferred, or becomes no longer subject to
the Master Buy Plan procedures in accordance with the criteria in 1807.7101,
the installation shall immediately notify Code HS, giving the reasons. Code
HS shall notify the installation’s procurement office in writing of any further action that may be required.
(c) Acquisition documents not selected for Headquarters review will be
subject to after-the-fact reviews by
Headquarters during normal procurement management surveys or other
special reviews. Acquisition delegations may subsequently be rescinded if
a Headquarters review is deemed appropriate.
1807.7103

Format of Master Buy Plan.

In accordance with the requirements
of 1807.7102–1 and 1807.7102–2, installations must prepare Master Buy Plans
and amendments to Master Buy Plans
in accordance with the Master Buy
Plan Database (MBPD) instructions at
http://www/hq.nasa.gov/office/ procurement/regs/Table1807.doc and submit
them in accordance with the MBPD
User Manual Instructions listed at
http://ec.msfc.nasa.gov/hq/
library/
mbp.User Guide.html.
[66 FR 53546, Oct. 23, 2001]

Subpart 1807.72—Acquisition
Forecasting
1807.7200

Scope of subpart.

This subpart prescribes the acquisition forecasting procedure required to
comply with the Business Opportunity
Development Reform Act of 1988.
1807.7201

Definitions.

Class of contracts means a grouping of
acquisitions, either by dollar value or
by the nature of supplies and services
to be acquired.
Contract opportunity means planned
new contract awards exceeding $25,000.

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National Aeronautics and Space Administration
1807.7202 Policy.
As required by statute, it is NASA
policy to
(a) Prepare an annual forecast and
semiannual update of expected contract opportunities or classes of contract opportunities for each fiscal year;
(b) Include in the forecast contract
opportunities that small business concerns, including those owned and controlled by socially and economically
disadvantaged individuals, may be capable of performing; and
(c) Make available such forecasts to
the public.
1807.7203 Responsibilities.
(a) NASA Procurement Officers shall
post the data required by 1807.7204 directly to the NASA Acquisition Internet Service not later than October 1 for
the annual forecast and April 15 for the
semiannual update.
(b) Code HS will manage policy and
monitor compliance with the NASA
Acquisition Forecast process.
[64 FR 5620, Feb. 4, 1999]

1807.7204 Forecast data.
(a) The annual forecast shall contain—
(1) Summary historical data (based
on information provided by the Headquarters Office of Procurement (Codes
HC and HS)) on the class of contract
opportunities below the simplified acquisition threshold;
(2) Identification of all known contract opportunities in excess of the
simplified acquisition threshold. Each
such action should be identified as one
of the three broad categories of
acqusition—Research
and
Development, Services, or Supplies and Equipment and shall include the following
information:
(i) A brief description not to exceed
ten typed lines;
(ii) Approximate dollar value within
the following dollar ranges: $100,000 to
$1,000,000; $1,000,000 to $5,000,000; and
over $5,000,000;
(iii) Anticipated time (by fiscal year
quarter) for the issuance of the solicitation;
(iv) Identification if it is reserved for
performance by small business concerns including those owned and con-

Pt. 1808

trolled by socially and economically
disadvantaged individuals;
(v) Identification as competitive or
noncompetitive; and
(vi) Identification and telephone
number of a center point of contact.
(b) The semiannual report shall be an
update of the data provided by the annual forecast. This update should provide information on new requirements
not previously reported and on changes
in data related to actions previously
identified.
1807.7205 Public availability.
The annual forecast and semiannual
update are available on the NASA Acquisition Internet Service (http://
www.hq.nasa.gov/office/procurement/).
[62 FR 58687, Oct. 30, 1997]

PART 1808—REQUIRED SOURCES
OF SUPPLIES AND SERVICES
Sec.
1808.002 Use of other
sources.
1808.002–70 Acquisition
1808.002–71 Acquisition
1808.002–72 Acquisition
1808.002–75 Acquisition

Government supply
of
of
of
of

radioisotopes.
liquid hydrogen.
propellants.
mercury.

Subpart 1808.1—Excess Personal Property
1808.103 Information on
personal property.

available

Subpart 1808.4—Federal Supply Schedules
1808.404 Using schedules.
1808.404–3 Requests for waivers.

Subpart 1808.6—Acquisition From Federal
Prison Industries, Inc.
1808.605

Clearances.

Subpart 1808.7—Acquisition From Nonprofit
Agencies Employing People Who Are
Blind or Severely Disabled
1808.705 Procedures.
1808.705–1 General.

Subpart 1808.8—Acquisition of Printing and
Related Supplies
1808.802
1808.870

Policy.
Contract clause.

Subpart 1808.11—Leasing of Motor
Vehicles
1808.1100

Scope of subpart.

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1808.002

48 CFR Ch. 18 (10–1–02 Edition)

AUTHORITY: 42 U.S.C. 2473(c)(1)
SOURCE: 61 FR 47073, Sept. 6, 1996, unless
otherwise noted.

1808.002 Use of other Government supply sources.
1808.002–70 Acquisition
radioisotopes.

of

(a) U.S. Department of Energy Isotope and Technical Service Order Form
CA–10–90.COM, and U.S. Nuclear Regulatory Commission Application for Material License, NRC Form 313, shall be
used to acquire radioisotopes.
(b) NRC Form 313 shall be filed with
the Chief, Radioisotopes Licensing
Branch, Division of Fuel Cycle and Material Safety, United States Nuclear
Regulatory Commission, Washington,
DC 20555. If the application meets all
regulatory requirements and applicable
standards, the Radioisotopes Licensing
Branch, Nuclear Regulatory Commission, will issue a license to the applicant. After receipt of the license, a
completed DOE Form CA–10–90.COM (in
duplicate, if the contracting office
wants an accepted copy of the form
back from the supplier), the license,
and a Government bill of lading shall
be sent to the appropriate DOE laboratory. If a bill of lading is not furnished,
shipment shall be made collect on a
commercial bill of lading, to be converted at destination.
(c) NRC Form 313 and DOE Form CA–
10–90.COM may be requisitioned directly from the United States Nuclear
Regulatory
Commission,
Attn:
Radioisotopes Licensing Branch, Division of Fuel Cycle and Material Safety,
Washington, DC 20555.
(d) Guidance is available from DOE
at URL http://www.ornl.gov/isotopes/catalog.htm.
[64 FR 5620, Feb. 4, 1999, as amended at 65 FR
12484, Mar. 9, 2000]

1808.002–71 Acquisition of liquid hydrogen.
Requests for liquid hydrogen shall be
submitted to the John F. Kennedy
Space Center, National Aeronautics
and Space Administration, Kennedy
Space Center, FL 32899, Attn: Director
of Logistics Operations.

1808.002–72 Acqusition of propellants.
(a) General. NASA (and its contractors when authorized in accordance
with 1851.1) may acquire the items listed in paragraph (j) of this section
(except for liquid hydrogen; see
1808.002–71) on a reimbursable basis
from the San Antonio Air Logistics
Center (SA–ALC), Kelly Air Force
Base, Texas, under the Air Force Missile Procurement Fund (MPF). The Air
Force MPF shall be used as a supply
source for propellants whenever there
are economic or other advantages to
the Government. Field installations
and offices obtaining supplies from the
MPF shall comply with the reporting
requirements of paragraph (f) of this
section.
(b) Requests for acquisition. To obtain the materials listed in paragraph
(j) of this section from the Air Force
MPF, NASA contracting offices will
execute a NASA-Defense Purchase Request (NASA Form 523) (see 1853.303–
523) and forward it to Headquarters,
SA–ALC, Kelly Air Force Base, TX
78241, Attention: SFS. The following
additional information should be provided on the form:
(1) Contract number (when material
is required for use by a NASA contractor).
(2) Delivery address.
(3) Mode of transportation (rail, trailer, barge, etc.). When the procurement
request covers requirements for materials not previously forecasted or covers significant changes to previously
reported requirements, SA–ALC should
be notified immediately of such requirements.
(c) Delivery requests.
(1) A delivery request is a call on the
Air Force, made against a NASA-Defense Purchase Request (NASA Form
523), specifying the time and place of
delivery. On the basis of the estimated
requirements, the Air Force will notify
NASA field installations and contractors of the name and address of the Air
Force office or producing contractor’s
plant to which requests for delivery of
materials shall be made. Delivery requests may be placed by any means of
communication that time justifies;
however, all verbal requests for delivery must be confirmed in writing within 24 hours. The delivery request,

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National Aeronautics and Space Administration
whether oral or written, must cite the
NASA-Defense Purchase Request number under which the material is being
ordered and contain the following information:
(i) Nomenclature and National Stock
Number.
(ii) Quantity.
(iii) Program, project, and task.
(iv) Contract number (when material
is required for use by a NASA contractor).
(v) Delivery address.
(vi) Dates of delivery.
(vii) Mode of transportation.
(viii) Location of weighting stations
and scales (if weighing of the products
before delivery is required).
(2) Each delivery request shall be
numbered as follows to simplify identification and control: the last two digits
of the calendar year; a dash; and a consecutive number beginning with 1 to
run through the year (e.g., 89–5, for the
fifth request made in 1989). Changes to
a request are identified by adding an
alphabetical designator beginning with
(A) to the number.
(d) Receiving procedures.
(1) Receiving documents. Receipt of
materials shall be evidenced on the receiving document received with the
shipment by the signature of an individual authorized by NASA to receive
materials from the Air Force. Every effort should be made to ensure that the
NASA-Defense Purchase Request number is recorded on the receiving document before signing.
(2) Weighing facilities. Local weighing
facilities
(NASA-owned,
contractor-owned, commercial, or Stateoperated) may be used to determine
quantities of product received. If a discrepancy exists between the quantities
shown on receiving documents and the
quantities actually received—
(i) A certified weighing ticket evidencing actual weight at destination
shall be obtained; and
(ii) A copy of the receiving document
(AF Form 857 or DD Form 250) and the
original weighting ticket shall be forwarded to Headquarters, SA–ALC,
Kelly Air Force Base, TX 78241, Attention: ACFOM, identifying the discrepancy.
(3) Distribution of receipts. Copies of
all receiving documents except the AF

1808.002–72

Form 857 shall be transmitted to the
Headquarters, SA–ALC, Kelly Air
Force Base, TX 78241, Attention:
SACAOM. Receiving documents may be
accumulated and submitted on the
10th, 20th, and last day of each month.
(e) Billing. The costs of materials obtained through the MPF are reimbursable. After delivery, a Standard Form
1080 (Voucher for Transfers Between
Appropriations
and/or
Funds
(Disbursement)), supported by documentary evidence of delivery, will be
submitted by Headquarters, SA–ALC to
the NASA installation designated in
the NASA Form 523.
(f) Reporting requirements.
(1) Field installations shall submit
periodic estimates of requirements for
materials listed in paragraph (j) of this
section for all programs under their
cognizance, including in-house contractor requirements. Reports shall be
submitted in duplicate on AF Form 858,
Forecast of Propellant Requirements.
(2) The reports shall be forwarded no
later than June 1 and December 1 to
reach Headquarters, SA–ALC, Kelly
AFB, TX 78241, Attn: SFS. Supplemental reports advising of additions to
or significant changes in previous reports may be submitted at any time.
The reports, covering all materials
listed in paragraph (j) of this section,
due in June and December, shall begin
with requirements as of the following
July 1 and January 1, respectively, and
shall cover a 3-year period. Requirements shall be shown by month for the
first 6 months, and by quarters for the
remaining 21⁄2-year period.
(3) Estimated requirements and other
pertinent data required from contractors shall be obtained on Air Force
Form 858.
(g) Report content. Reports shall be
made using a separate report form for
each material and shall provide, for
each item of material, the—
(1) Contract number;
(2) Program and/or project;
(3) Specific task within the project;
(4) End use when not associated with
the named program or project;
(5) Contractor’s name;
(6) Specific location of use (shipping
destination); and
(7) Planned source of supply.

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1808.002–72

48 CFR Ch. 18 (10–1–02 Edition)

(h) Basis for developing materials requirements. In computing requirements, consideration shall be given to
such elements as lead time, waste factors, transfer, and storage losses so
that phased requirements reflect the
total gross quantities required to be
delivered to the use or storage site.
Since the requirements estimates are
being used by other Government agencies acting as supply sources to contract for materials, estimates must be
as accurate as possible.
(i) NASA coordination. The Kennedy
Space Center shall coordinate the review of all data and establish NASA
policy and procedures. The data shall
be used as the basis for NASA requirements reports to various Government
agencies for planning and supply support.
(j) Table of reportable materials.
Ammonia, Technical (Anhydrous) (Low
Oil Content) 99.97 percent purity,
Spec 0–A–445
Argon Gas, 6000 PSI, AFPID 6830–5
Propellant, Ammonia, Liquid, Anhydrous 99.5 percent purity, Spec MIL–
P–27406
Propellant, Chlorine Trifluoride, Spec
MIL–P–81399
Propellant,
Deuterium,
Gaseous,
AFPID 9135–20
Propellant, Fluorine, Gaseous, Spec
MIL–P–27405
Propellant, Fluorine, Liquid, Spec
MIL–P–27405
Helium, Technical Grade A, Spec BB–
H–1168
Propellant, Isopropyl Alcohol, AFPID
9135–18
Propellant, Hydrazine, Standard Grade,
Spec MIL–P–26536
Propellant, Hydrazine, Monopropellant
Grade, Spec MIL–P–26536
Propellant, Hydrazine/Unsymmetrical
Dimethylhydrazine, Spec MIL–P–
27402
Propellant, Hydrogen, Gaseous, Type I,
Spec MIL–P–27201
Propellant, Hydrogen, Liquid, Type II,
Spec MIL–P–27201
Propellant, Hydrogen Peroxide, Spec
MIL–P–16005
Propellant, Hydrogen Peroxide, Electrolytic Process, Spec MIL–P–16005
Propellant, Jet Fuel, Grade RJ–1, Spec
MIL–F–25558

Propellant, JPX, 50 percent UDMH–50
percent JP–4, Spec MIL–P–26694
Propellant, JPX, 17 percent UDMH–83
percent JP–4, Spec MIL–P–26694
Propellant, Kerosene, Grade RP–1, Spec
MIL–P–25576
Propellant, Monomethyl Hydrazine,
Spec MIL–P–27404
Propellant, Neon, Liquid, AFPID 9135–
16
Propellant, Nitric Acid, Type IIIB,
Spec MIL–P–7254
Propellant, Nitric Acid, Type III LS,
Spec MIL–P–7254
Propellant, Nitric Acid, Type IV (High
Density Acid), Spec MIL–P–7254
Propellant, Nitrogen Tetroxide (NTO)
(MON–1) (MON–3), Spec MIL–P–26539
Propellant, Nitrogen Tetroxide (NTO),
MIL–P–26539
Propellant, Nitrogen Tetroxide (MON–
1), Spec MIL–P–26539
Propellant, Nitrogen Tetroxide (MON–
3), Spec MIL–P–26539
Propellant, Oxygen, Grade B, Spec
MIL–P–25508
Propellant, Oxygen, Grade A, Spec
MIL–P–25508
Propellant, Oxygen, Grade F, Spec
MIL–P–25508
Propellant Pressurizing Agent, Helium,
Spec MIL–P–27407, 99.995 pct min
assay
Propellant Pressurizing Agent, Nitrogen, Type II, Liquid Grade C, Spec
MIL–P–27401
Propellant Pressurizing Agent, Nitrogen, Type I, Gaseous Grade A, Spec
MIL–P–27401
Propellant Pressurizing Agent, Nitrogen, Type I, Grade B, Spec MIL–P–
27401
Propellant Pressurizing Agent, Nitrogen, Type II, Grade A, Spec MIL–P–
27401
Propellant Pressurizing Agent, Nitrogen, Type II, Grade B, Spec MIL–P–
27401
Propellant, Unsymmetrical Dimethylhydrazine, Spec MIL–P–25604
Propellant, Nitrogen Trifluoride Spec
MIL–P–87896
Propellant, Pressurizing Agent, Argon,
Liquid, AFPID 9135–19
[61 FR 47073, Sept. 6, 1996, as amended at 65
FR 46627, July 31, 2000]

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National Aeronautics and Space Administration
1808.002–75

Acquisition of mercury.

(a) Requests for mercury by NASA
installations for their use or for use by
their cost-reimbursement type contractors shall be made to the Mercury
Contract Specialist, Directorate of
Stockpile Contracts, DLA, Defense National Stockpile Center, 8725 John J.
Kingman Rd., #3339, Ft. Belvoir, VA
22060–6223. DLA will furnish the current
fair market value to NASA. The unit of
issue is a 76-pound flask.
(b) Requests for clearance to purchase quantities of 76 pounds or more
from sources other than DLA shall be
submitted to the office in paragraph (a)
of this section and must be accompanied by a statement of reasons why
the available excess mercury is unsuitable for use by the requesting field installation.

Subpart 1808.1—Excess Personal
Property
1808.103 Information on available excess personal property.
In addition to the sources identified
in FAR 8.103, information on availability of NASA excess property is
maintained by the Installation Property Disposal Officer and the NASA
Equipment
Management
System
(NEMS) Coordinator.

1808.802

for Procurement shall promptly notify
the Commissioner, Federal Supply
Service, GSA, and the contracting office of the decision.

Subpart 1808.6—Acquisition From
Federal Prison Industries, Inc.
1808.605 Clearances. (NASA supplements paragraphs (a) and (c)).
(a) NASA purchase orders or contracts written pursuant to a general or
blanket clearance need not be supported by a copy of the clearance, but
the clearance number must be cited on
the purchase order or contract as well
as on the initial voucher. A copy of the
clearance certificate must be attached
to the initial voucher.
(c) When disputes occur, the contracting officer shall refer the matter
to the Assistant Administrator for Procurement (Code HS) for review and any
further action. Such referrals shall include a complete statement of the attempts made to resolve the matter.

Subpart 1808.7—Acquisition From
Nonprofit Agencies Employing
People Who are Blind or Severely Disabled
1808.705

Procedures.

1808.705–1

Subpart 1808.4—Federal Supply
Schedules
1808.404

Using schedules.

1808.404–3 Requests
for
waivers.
(NASA supplements paragraphs (a)
and (b)).
(a) The head of the NASA office initiating the procurement request or a designated representative shall furnish
the NASA contracting office a signed
statement identifying the supplies or
services to be purchased and explaining
why similar items listed in the applicable schedule will not meet the requirement.
(b) If a waiver is not granted, the
case shall be referred to the Assistant
Administrator for Procurement (Code
HS) for a final decision as to whether
the non-schedule item will be purchased. The Assistant Administrator

General.

The Federal Standard Requisitioning
and Issue Procedure (Federal Property
Management Regulation, Subpart 101–
26.2) shall be used to obtain nonprofit
agency-produced supplies from GSA
supply distribution facilities.

Subpart 1808.8—Acquisition of
Printing and Related Supplies
1808.802

Policy.

(b)(i) The Headquarters Chief Information Officer (Code AO) is the NASA
central printing authority.
(ii) Requests for approval to contract
for printing supplies or services shall
be addressed to Code AO. Approval to
contract for such supplies or services is
restricted to those requirements meeting the following conditions:
(A) An individual order is under
$1,000;

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1808.870

48 CFR Ch. 18 (10–1–02 Edition)

(B) The order is not of a continuing
or repetitive nature; and,
(C) The Public Printer certifies it
cannot be provided more economically
through the GPO.
[66 FR 53546, Oct. 23, 2001]

1808.870

Contract clause.

The contracting officer shall insert
the clause at 1852.208–81, Restrictions
on Printing and Duplicating, in solicitations and contracts where there is a
requirement for any printing, and/or
any duplicating/copying in excess of
that described in paragraph (c) of the
clause.

Subpart 1808.11—Leasing of Motor
Vehicles
1808.1100

Subpart 1809.4—Debarment, Suspension,
and Ineligibility
1809.403 Definitions.
1809.404 List of Parties Excluded from Federal Procurement and Nonprocurement
programs.
1809.405 Effect of listing.
1809.405–1 Continuation of current contracts.
1809.405–2 Restrictions on subcontracting.
1809.406 Debarment.
1809.406–3 Procedures.
1809.407 Suspension.
1809.407–3 Procedures.
1809.408 Certification regarding debarment,
suspension, proposed debarment, and
other responsibility matters.
1809.470 Reporting of suspected evasive actions and causes for debarment or suspension.
1809.470–1 Situations requiring reports.
1809.470–2 Contents of reports.
1809.470–3 Addresses and copies of reports.

Scope of subpart.

NASA procedures for leasing motor
vehicles from GSA or commercial
sources are contained in NPD 6000.1,
Transportation Management.
[61 FR 47073, Sept. 6, 1996, as amended at 65
FR 12484, Mar. 9, 2000]

Subpart 1809.5—Organizational and
Consultant Conflicts of Interest
1809.500 Scope of subpart.
1809.503 Waiver.
1809.506 Procedures.
1809.507 Solicitation provisions
tract clause.
1809.507–2 Contract clause.

and

Subpart 1809.6—Contractor Team
Arrangements

PART 1809—CONTRACTOR
QUALIFICATIONS

1809.670

Subpart 1809.1—Responsible Prospective
Contractors

Contract clause.

AUTHORITY: 42 U.S.C. 2473(c)(1).

Sec.
1809.104–4 Subcontractor responsibility.
1809.106 Preaward surveys.
1809.106–1 Conditions for preaward surveys.
1809.106–2 Requests for preaward surveys.
1809.106–3 Interagency preaward surveys.
1809.106–70 Preaward surveys performed by
NASA installations.

Subpart 1809.2—Qualifications
Requirements
1809.200 Scope of subpart.
1809.202 Policy.
1809.203 QPL’s, QML’s, and QBL’s.
1809.203–70 General.
1809.203–71 Waiver of qualification requirements.
1809.206 Acquisitions subject to qualification requirements.
1809.206–1 General.
1809.206–70 Small businesses.
1809.206–71 Contract clause.

SOURCE: 61 FR 47075, Sept. 6, 1996, unless
otherwise noted.

Subpart 1809.1—Responsible
Prospective Contractors
1809.104–4 Subcontractor
responsibility.
Generally, the Canadian Commercial
Corporation’s (CCC) proposal of a firm
as its subcontractor is sufficient basis
for an affirmative determination of responsibility. However, when the CCC
determination of responsibility is not
consistent with other information
available to the contracting office, the
contracting officer shall request from
the CCC and any other sources whatever information is necessary to make
the responsibility determination.
Upon request, CCC shall be furnished
the rationale for any subsequent determination of nonresponsibility.

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National Aeronautics and Space Administration
1809.106

Preaward surveys.

1809.203–70

1809.106–70 Preaward surveys
formed by NASA installations.

1809.106–1 Conditions for preaward
surveys. (NASA supplements paragraph (a)).
(a)(i) Preaward surveys are used only
to assist the contracting officer to
make determinations of responsibility
under FAR 9.104. They are not to be
used to obtain information useful to
proposal evaluation that does not directly relate to the responsibility determination. Accordingly, preaward
surveys shall not be used except in rare
circumstances when determination of
responsibility cannot be made without
the specific information that can be
provided only in a preaward survey report and only after all other means of
obtaining the required information
have been explored.
(ii) Surveys shall not be performed
for companies of any size performing
study or research contracts.
(iii) The procurement officer shall
approve all preaward survey requests.
1809.106–2 Requests for preaward surveys. (NASA supplements paragraph (a))
(a) The ‘‘Walsh-Healey Public Contracts Act’’ block of Section I is for information purposes only. If information is needed for a determination on
the offeror’s eligibility under the
Walsh-Healey Act, it must be specifically requested in block 20.H. of Section III.
1809.106–3 Interagency preaward surveys. (NASA supplements paragraph (a))
If the survey will be performed for
NASA by a DOD agency, the SF 1403 request is to be sent to the appropriate
office shown in the DOD Directory of
Contract
Administration
Services
Components,
DLAH
4105.4,
Attn:
Preaward Survey Monitor. DOD normally allows seven working days in
which to conduct a full survey and submit the report to the requesting agency.
[61 FR 47075, Sept. 6, 1996, as amended at 62
FR 36705, July 9, 1997]

In discussions with representatives of
the company being surveyed, NASA
preaward survey team members shall
not refer to or comment on the possibility of award to the prospective contractor. This does not preclude discussion with a prospective contractor of
questionable areas that require clarification. Information obtained during
the survey will be treated in strict confidence and divulged only to those Government representatives having a need
to know.

Subpart 1809.2—Qualifications
Requirements
1809.200

Scope of subpart.

This subpart prescribes policies and
procedures to be followed in the use of
qualified products lists for acquisition
of parts consistent with the policies of
NASA Policy Directive 8730.2, NASA
Parts Policy.
[64 FR 36606, July 7, 1999]

1809.202 Policy. (NASA supplements
paragraphs (a) and (e))
(a) Authority regarding agency head
actions under FAR 9.202(a) is delegated
to the cognizant technical activity,
with approval by the installation’s
competition advocate.
(e) The approval authority of FAR
9.202(e) is delegated to the installation’s competition advocate. Requests
shall be prepared by the cognizant requirements office and submitted via
the procurement officer.
1809.203

QPL’s, QML’s and QBL’s.

1809.203–70 General. (NASA
ments paragraph (a))

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(a) The Deputy Associate Administrator for the Office of Safety and Mission Assurance (Code Q), is responsible
for justifying, determining, and approving NASA’s need for inclusion and
continued use of qualification requirements in specifications under the
NASA EEE Parts and Advanced Interconnect Program.

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1809.203–71

48 CFR Ch. 18 (10–1–02 Edition)

1809.203–71 Waiver of qualification requirements.
When acquiring a product under a
specification that includes qualification requirements either for the end
item or for components of the end
item, the NASA installation conducting the acquisition can waive the
qualification requirements. Directing a
waiver of the end item qualification requirement constitutes adequate authorization for waiver of product qualification requirements. When a waiver
has been granted, the solicitation shall
specifically indicate that the qualification requirement is inapplicable. Such
information shall also be included in
any synopsis of the acquisition (see
FAR subpart 5.2).
1809.206 Acquisitions subject to qualification requirements.
1809.206–1 General.
(NASA
supplements paragraph (b) and (c))
(b)(i) The authority to determine
that an emergency exists is delegated
to the installation’s competition advocate. Requests for determination shall
be prepared by the cognizant requirements office and submitted through
the procurement officer.
(ii) Requests not to enforce a qualification
requirement
in
a
nonemergency situation shall be prepared
by the cognizant requirements office
and approved by the Headquarters Office of Safety and Mission Assurance
(Code Q).
(c) If an offeror seeks to demonstrate
its capability, both the product and the
producer must meet the established
standards.
1809.206–70 Small businesses.
If a small business otherwise eligible
for award has been placed in a special
status on a Qualified Products List
(Mil–Bul–103) or the Qualified Manufacturers List (QML–38510) established as
a part of the NASA Microelectronics
Reliability Program and the contracting officer determines that the
small business does not appear to have
the capacity to perform, the certificate
of competency procedures in FAR subpart 19.6 are applicable.

1809.206–71

Contract clause.

When qualified products (end items
or components of end items) are being
procured, the contracting officer shall
insert the clause at 1852.209–70, Product
Removal from Qualified Products List,
in the solicitation and in the resulting
contract.

Subpart 1809.4—Debarment,
Suspension, and Ineligibility
1809.403

Definitions.

For purposes of FAR subpart 9.4 and
this subpart, the Assistant Administrator
for
Procurement
is
the
‘‘debarring official,’’ the ‘‘suspending
official,’’ and the agency head’s
‘‘designee.’’
1809.404 List of parties excluded from
Federal procurement and nonprocurement programs. (NASA supplements paragraphs (c) and (d))
(c) The Office of Procurement (Code
HK) is responsible for taking the actions listed in FAR 9.404(c).
(d)(1) Installation procurement offices shall notify Code HK of how many
copies of the List they want and provide a single mailing address at the installation. Code HK will place the order
for the copies which will be mailed directly to the installation. Electronic
access is also available as described in
the List.
[61 FR 47075, Sept. 6, 1996, as amended at 63
FR 32763, June 16, 1998]

1809.405

Effect of listing

If it is believed that a new contract
or subcontract must be awarded to a
firm on the List of Parties Excluded
from Federal Procurement and Nonprocurement Programs, the procurement officer shall prepare a request for
a determination with all necessary supporting information and forward it to
the Assistant Administrator for Procurement (Code HK) for approval.
[61 FR 47075, Sept. 6, 1996, as amended at 63
FR 32763, June 16, 1998]

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National Aeronautics and Space Administration

1809.470–2

1809.405–1 Continuation of current
contracts. (NASA supplements paragraph (c))

1809.470 Reporting of suspected evasive actions and causes for debarment or suspension.

(c) Approval of contract renewals or
extensions shall be requested in accordance with 1809.405.

1809.470–1
ports.

1809.405–2 Restrictions on subcontracting. NASA supplements paragraph (a)).
(a) Approval of consent to subcontract shall be requested in accordance with 1809.405.
1809.406

Debarment.

1809.406–3 Procedures. (NASA supplements paragraph (a))
(a) The report required by FAR 9.406–
3(a) shall be prepared in accordance
with 1809.470.
1809.407

Situations

requiring

A report incorporating the information required by 1809.470–2 of this subpart shall be forwarded by the procurement officer to the Assistant Administrator for Procurement (Code HK)
when a contractor:
(a) Has committed, or is suspected of
having committed, any of the acts described in FAR 9.406–2 and 9.407–2; or
(b) Is suspected of attempting to
evade the prohibitions of a debarment
or suspension imposed under the FAR
by changes of address, multiple addresses, formation of new companies,
or other devices.
[61 FR 47075, Sept. 6, 1996, as amended at 63
FR 32763, June 16, 1998]

Suspension.

1809.407–3 Procedures. (NASA supplements paragraph (a))
(a) Reports shall be prepared in accordance with 1809.470.
1809.408 Certification regarding debarment, suspension, proposed debarment, and other responsibility
matters. (NASA supplements paragraph (a))
(a)(2) (A) If the offeror indicates that
it has been indicted, charged, convicted, or had a civil judgment rendered against it, the contracting officer
shall immediately notify the Assistant
Administrator for Procurement (Code
HK), providing details as known, and
shall await a response before awarding
the contract.
(B) If the offeror discloses information that indicates a need for a debarment or suspension determination, the
contracting officer shall report the
facts to the Assistant Administrator
for Procurement (Code HK) in accordance with 1809.470.
[61 FR 47075, Sept. 6, 1996, as amended at 63
FR 32763, June 16, 1998]

1809.470–2

Contents of reports.

Each report shall be coordinated with
local counsel and shall include substantially the following information, if
available:
(a) Name and address of the contractor.
(b) Names of the principal officers,
partners, owners, or managers.
(c) All known affiliates, subsidiaries,
or parent firms, and the nature of the
affiliation.
(d) A description of the contract or
contracts concerned, including the contract number and office identifying
numbers or symbols, the amount of
each contract, the amounts paid the
contractor and still due, and the percentage of work completed and to be
completed.
(e) The status of vouchers.
(f) Whether the contract has been assigned pursuant to the Assignment of
Claims Act, and, if so, the name and
address of the assignee and a copy of
the assignment.
(g) Whether any other contracts are
outstanding with the contractor or any
affiliates, and, if so, their amount,
whether they are assigned pursuant to
the Assignment of Claims Act, and the
amounts paid or due on them.

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1809.470–3

48 CFR Ch. 18 (10–1–02 Edition)

(h) A complete summary of all pertinent evidence. If a request for debarment or suspension is based on an indictment or a conviction, provide the
evidence upon which the indictment or
conviction is based.
(i) An estimate of any damages, sustained by the Government as a result
of the contractor’s action, including an
explanation of the method used in
making the estimate.
(j) Recommendation as to
(1) Whether the contractor should be
suspended or debarred,
(2) Whether any limitations should be
applied to such action,
(3) Whether current contracts should
be terminated, and
(4) The period of any debarment.
(k) As an enclosure, a copy of the
contract(s) or pertinent excerpts, appropriate exhibits, testimony or statements of witnesses, copies of assignments, and other relevant documentation.
1809.470–3
ports.

Addresses and copies of re-

Reports, including enclosures, shall
be submitted to the Office of Procurement (Code HK), with an additional
copy to the Headquarters Office of General Counsel (Code G).

1809.506 Procedures. (NASA
ments paragraph (b))

(b) The approving official is the procurement officer when the installation
has source selection authority and the
Assistant Administrator for Procurement (Code HS) when NASA Headquarters has that authority.
1809.507 Solicitation
contract clause.
1809.507–2

1809.500

Scope of subpart.

The Assistant Administrator for Procurement has authorized the procurement officer to take those actions reserved in FAR subpart 9.5 for the head
of the contracting activity. However,
see 1809.503 regarding waivers.
1809.503

Contract clause.

1809.670

Contract clause.

The contracting officer shall insert
the clause at 1852.209–72, Composition
of the Contractor, in all construction
invitations for bids and resulting contracts. The clause may be used in other
solicitations and contracts to clarify a
contractor team arrangement where
the prime contractor consists of more
than one legal entity, such as a joint
venture.

PART 1811—DESCRIBING AGENCY
NEEDS
Sec.
1811.002

Policy.

Subpart 1811.1—Selecting and Developing
Requirements Documents
1811.101 Order of precedence for requirements documents.
1811.107 Solicitation provisions.

Subpart 1811.4—Delivery or Performance
Schedules
1811.403 Supplies or services.
1811.403–70 Packaging, handling, and transportation.
1811.404 Contract clauses.
1811.404–70 NASA contract clauses.

Subpart 1811.5—Liquidated Damages
1811.501

Policy.

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and

Subpart 1809.6—Contractor Team
Arrangements

Waiver.

The Administrator has designated
the Assistant Administrator for Procurement as the approval authority for
waivers under FAR 9.503. The procurement officer shall forward requests for
waivers under FAR 9.503 to the Assistant Administrator for Procurement
(Code HS) for action.

provisions

The contracting officer may insert a
clause substantially the same as the
clause at 1852.209–71, Limitation of Future Contracting, in solicitations and
contracts.

[61 FR 47075, Sept. 6, 1996, as amended at 63
FR 32763, June 16, 1998]

Subpart
1809.5—Organizational
and Consultant Conflicts of Interest

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National Aeronautics and Space Administration
Subpart 1811.6—Priorities and Allocations
1811.602
1811.603

Subpart 1811.4—Delivery or
Performance Schedules

General.
Procedures.

AUTHORITY: 42 U.S.C. 2473(c)(1).
SOURCE: 61 FR 47078, Sept. 6, 1996, unless
otherwise noted.

1811.002 Policy. (NASA
paragraph (b))

1811.404–70

supplements

(b) Implementation of the Metric
Conversion Act of 1975, as amended,
must be in accordance with NPD
8010.2B, Use of the Metric System of
Measurements in NASA Programs.
[61 FR 47078, Sept. 6, 1996, as amended at 65
FR 37061, June 13, 2000]

Subpart 1811.1—Selecting and
Developing
Requirements
Documents
1811.101 Order of precedence for requirements documents.
(a) Safeguards to ensure safety, security, and environmental protection
must be included, as applicable, in requirements documents.
(b)(2) Requirements for the use of environmentally preferable products will
be established in accordance with NPG
8830.1, ‘‘Affirmative Procurement Plan
for Environmentally Preferable Products.’’ Requirements for the use of energy and water efficient products and
the use of renewable energy technology
will be established in accordance with
NPG 8570.1, ‘‘Energy Conservation
Technologies and Practices.’’
[67 FR 30603, May 7, 2002]

1811.107 Solicitation
provisions.
(NASA supplements paragraph (b))
(b) NASA uses the categorical method to report its use of voluntary consensus standards.
Therefore, use of the provision at
52.211–7 is not required. However, contracting officers must include in draft
RFPs (DRFPs) the information required by 1815.201(c)(6)(A).
[65 FR 12484, Mar. 9, 2000]

1811.403 Supplies or services. (NASA
supplements paragraph (a))
(a)(3) Contract delivery or performance schedules must not be expressed
in terms of a notice of award. A notice
of award as a specific document, separate from the award document itself, is
not a contractual document and must
not be used as a reference point for
contract performance. See 1814.408 for
additional information on notices of
award.
[61 FR 47078, Sept. 6, 1996, as amended at 65
FR 37062, June 13, 2000]

1811.403–70 Packaging, handling, and
transportation.
(a) NPG 6000.1E, ‘‘Requirements for
Packaging, Handling, and Transportation for Aeronautical and Space Systems, Equipment, and Associated Components’’ provides guidance for shipment of certain NASA items.
(b) Contracting officers, with the advice of the requiring activity and the
Center Transportation Officer, must include a designation of each deliverable
item, or groupings of deliverable items,
as Class I, II, III, or IV for purposes of
contractor compliance with the NPG.
[65 FR 37062, June 13, 2000]

811.404 Contract clauses. (NASA supplements paragraph (a))
(a)(2) FAR 52.211–8, Time of Delivery,
Alternates II and III, must not be used
in NASA contracts.
(3) FAR 52.211–9, Desired and Required Time of Delivery, Alternates II
and III, must not be used in NASA contracts.
[61 FR 47078, Sept. 6, 1996, as amended at 65
FR 37062, June 13, 2000]

1811.404–70 NASA contract clauses.
The clause at 1852.211–70, Packaging,
Handling, and Transportation, must be
included in solicitations and contracts
for deliverable items, including software, designated as Class I (mission essential), Class II (delicate or sensitive),
or Class III (requires special handling
or monitoring).
[65 FR 37062, June 13, 2000]

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1811.501

48 CFR Ch. 18 (10–1–02 Edition)

Subpart 1811.5—Liquidated
Damages
1811.501

Policy.

(d) The procurement officer must forward recommendations concerning remission of liquidated damages to the
Headquarters Office of Procurement
(Code HS).
[65 FR 58931, Oct. 3, 2000]

B9—Production
Equipment
(Government-Owned)
C2—Construction
C3—Maintenance, Repair, and Operating Supplies for Facilities
C9—Miscellaneous/Other
(g) Installation requests for assistance shall be directed to the Headquarters Office of Procurement (Code
HK).
[66 FR 29727, June 1, 2001]

Subpart 1811.6—Priorities and
Allocations

PART 1812—ACQUISITION OF
COMMERCIAL ITEMS

1811.602 General. (NASA supplements
paragraph (c))
(c) The Department of Defense is the
‘‘Delegate Agency’’ for NASA. The
Headquarters Office of Procurement
(Code HK) must coordinate with DOD,
as necessary, to ensure that any DOD
requirements are met.
[61 FR 47078, Sept. 6, 1996, as amended at 65
FR 37062, June 13, 2000; 66 FR 29727, June 1,
2001]

1811.603

Procedures.

(NASA supplements paragraphs (e)
and (g).)
(e)(i) Rated orders may be used by
NASA only as provided in Section
700.17 of the DPAS (15 CFR 700.17) and
subject to the limitations provided in
Section 700.18 of the DPAS (15 CFR
700.18). Priority ratings are assigned on
individual contracts and purchase orders by the contracting officer.
(ii) NASA rated orders may only be
assigned a DO rating, unless NASA has
obtained a DX rating from the Department of Defense.
(iii) The following program identification symbols may be used on NASA
rated contracts and purchase orders for
equipment and services that support
authorized programs (see Schedule I of
the DPAS):
A1—Aircraft
A2—Missiles
A3—Ships
A5—Weapons
A6—Ammunition
A7—Electronic and Communications
Equipment
B1—Military Building Supplies
B8—Production Equipment (For Contractor’s Account)

Subpart 1812.1—Acquisition of
Commercial Items—General
Sec.
1812.102

Applicability.

Subpart 1812.3—Solicitation Provisions and
Contract Clauses for the Acquisition of
Commercial Items
1812.301 Solicitation provisions and contract clauses for the acquisition of commercial items.
1812.302 Tailoring of provisions and clauses
for the acquisition of commercial items.

Subpart 1812.4—Unique Requirements Regarding Terms and Conditions for
Commerical Items
1812.404

Warranties.

Subpart 1812.70—Commercial Space
Hardware or Services
1812.7000 Prohibition on guaranteed customer bases for new commercial space
hardware or services.
AUTHORITY: 42 U.S.C. 2473(c)(1).
SOURCE: 61 FR 47079, Sept. 6, 1996, unless
otherwise noted.

Subpart 1812.1—Acquisition of
Commercial Items—General
1812.102 Applicability. (NASA supplements paragraph (c))
(c) For the acquisition of commercial
items of any value, the MidRange procedures described in part 1871 may be
used to the extent they are consistent
and compliant with FAR part 12 and
part 1812. Unless specifically stated, in
any conflict between these parts the
descending order of precedence is FAR
part 12, part 1812, and part 1871.

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National Aeronautics and Space Administration

Subpart 1812.3—Solicitation Provisions and Contract Clauses
for the Acquisition of Commercial Items
1812.301 Solicitation provisions and
contract clauses for the acquisition
of commercial items. (NASA supplements paragraph (f))
(f)(i) The following clauses are authorized for use in acquisitions of commercial items when required by the
clause prescription:
(A) 1852.204–74, Central Contractor
Registration.
(B) 1852.214–71, Grouping for Aggregate Award.
(C) 1852.214–72, Full Quantities.
(D) 1852.215–84, Ombudsman.
(E) 1852.219–75, Small Business Subcontracting Reporting.
(F) 1852.219–76, NASA 8 Percent Goal.
(G) 1852.223–70, Safety and Health.
(H) 1852.223–71, Frequency Authorization.
(I) 1852.223–72, Safety and Health
(Short Form).
(J) 1852.223–73, Safety and Health
Plan.
(K) 1852.223–75, Major Breach of Safety and Security.
(L) 1852.228–72, Cross-Waiver of Liability for Space Shuttle Services.
(M) 1852.228–76, Cross-Waiver of Liability for Space Station Activities.
(N) 1852.228–78, Cross-Waiver of Liability for NASA Expendable Launch
Vehicles.
(O) 1852.246–72, Material Inspection
and Receiving Report.
[64 FR 19926, Apr. 23, 1999, as amended at 64
FR 51078, Sept. 21, 1999; 65 FR 37058, June 13,
2000; 65 FR 50153, Aug. 17, 2000; 66 FR 18052,
Apr. 5, 2001]

1812.7000

1812.302 Tailoring of provisions and
clauses for the acquisition of commercial items. (NASA supplements
paragraph (c))
(c) The Assistant Administrator for
Procurement (Code HS) is the approval
authority for waivers. Requests shall
be prepared and submitted in accordance with 1801.471.

Subpart 1812.4—Unique Requirements Regarding Terms and
Conditions for Commercial
Items
1812.404

Warranties.

(b) In acquisitions under the Simplified Acquisition Threshold specified
in FAR part 13, no express warranty
should be required other than the
offeror’s commercial warranty.

Subpart 1812.70—Commercial
Space Hardware or Services
1812.7000 Prohibition on guaranteed
customer bases for new commercial
space hardware or services.
Public Law 102–139, title III, Section
2459d, prohibits NASA from awarding a
contract with an expected duration of
more than one year if the primary effect of the contract is to provide a
guaranteed customer base for, or establish an anchor tenancy in, new commercial space hardware or services. Exception to this prohibition may be authorized only by an appropriations Act
specifically providing otherwise.
[63 FR 40189, July 28, 1998]

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SUBCHAPTER C—CONTRACTING METHODS AND CONTRACT
TYPES
tor’s acceptance of the order is necessary (see FAR 13.302–3(a)).

PART 1813—SIMPLIFIED
ACQUISITION PROCEDURES

[65 FR 46628, July 31, 2000]
Sec.
1813.000
1813.003

Scope of part.
Policy.

Subpart 1813.1 Procedures
1813.106 Soliciting competition, evaluation
of quotations or offers, award and documentation.
1813.106–3 Award and documentation.

Subpart 1813.3 Simplified Acquisition
Methods

1813.003 Policy. (NASA supplements
paragraph (g))
(g) Acquisitions under these simplified acquisition procedures shall be
fixed-price, except as provided under
the unpriced purchase order method in
FAR 13.302–2.
[63 FR 40189, July 28, 1998, as amended at 64
FR 5620, Feb. 4, 1999]

Subpart 1813.1—Procedures

1813.301 Governmentwide commercial purchase card.
1813.301–70 Purchase card documentation.
1813.301–71 Training.
1813.301–72 Approving official.
1813.301–73 Program officials.
1813.302 Purchase orders.
1813.302–1 General.
1813.302–70 Purchase orders under section
8(a) of the Small Business Act.
1813.302–570 NASA solicitation provisions.
1813.303 Blanket
Purchase
Agreements
(BPAs).
1813.303–3 Preparation of BPAs.
1813.307 Forms.

1813.106 Soliciting competition, evaluation of quotations or offers,
award and documentation.
1813.106–3 Award and documentation.
(NASA supplements paragraph (b))
(b)(3)(ii) For purchases up to $50,000,
documentation shall be limited to a
brief notation in the file indicating the
rationale for selecting other than the
lowest priced offer.

Subpart 1813.3—Simplified
Acquisition Methods

AUTHORITY: 42 U.S.C. 2473(c)(1).
SOURCE: 63 FR 40189, July 28, 1998, unless
otherwise noted.

1813.000

Scope of part.

FAR Part 13 and 1813 do not apply to
NASA Research Announcements (NRA)
and Announcements of Opportunity
(AO). These acquisitions shall be conducted in accordance with the procedures in 1835.016–71 and 1872, respectively. However, awards resulting from
NRAs or AOs that are to be made as
procurement instruments, can be made
as either a contract or a purchase
order. When a purchase order is used, it
must not exceed the simplified acquisition threshold and must include the appropriate clauses pertaining to data
rights, key personnel requirements,
and any other requirements determined necessary by the contracting officer. Contracting officers must determine whether obtaining the contrac-

1813.301 Governmentwide commercial
purchase card. (NASA supplements
paragraphs (a), (b), and (c))
(a) The procurement officer or deputy
procurement officer shall designate individual cardholders in accordance
with center procedures, subject to the
following limitations:
(i) Personnel other than contracting
officers may be designated as cardholders for micro-purchases and for individual orders under BPAs up to $5,000
(see 1813.303–3(a)(4)), provided they
complete training adequate to ensure
appropriate use of the purchase card.
(ii) The procurement officer’s designation shall be in writing and shall
specify the scope of the cardholder’s
authority.
(iii) The center shall establish and
maintain administrative procedures
and management controls required by
the General Services Administration

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National Aeronautics and Space Administration
(GSA). Purchases made with the Governmentwide
commercial
purchase
card shall comply with the instructions
and procedures issued by GSA as well
as applicable parts of the FAR and
NFS.
(b) The Governmentwide commercial
purchase card may be used to order and
pay for purchases under contracts established under FAR Part 8 procedures,
up to the simplified acquisition threshold (except see paragraph (a)(i) of this
section for dollar limitations for personnel other than contracting officers).
(c) The Governmentwide commercial
purchase card may be used to order and
pay for purchases in the circumstances
described in FAR 13.301(c) up to the
simplified
acquisition
threshold
(except see paragraph (a)(i) of this section for limitations for personnel other
than contracting officers). Except as
authorized in paragraphs (b) and (c) of
this section, the Governmentwide commercial purchase card may not be used
for purchases in excess of $25,000. Purchases
above
the
micro-purchase
threshold shall comply with all applicable statutory and regulatory requirements, including the following:
(i) Small business set-aside (see FAR
13.003(b)).
(ii) Representations and certifications. The applicable items from the
provision at FAR 52.212–3, Offeror Representations and Certifications—Commercial Items, shall be obtained for
commercial or noncommercial purchases. This information may be obtained orally from vendors.
(iii) Maximum practicable competition (see FAR 13.106–1).
(iv) Implementation of the applicable
contract clauses. This requirement
may be satisfied by forwarding a completed SF 1449, appropriately modified
to reflect purchase card terms, to the
awardee after placing the order via the
card, provided that the awardee must
be notified of, and agree to, the applicability of the SF 1449 clauses when the
order is placed.

1813.302–70

micro-purchase threshold, the card
holder shall maintain a brief log of purchases and a file of monthly purchase
card statements indicating whether
item receipt has occurred. For purchases
above
the
micro-purchase
threshold, see 1813.106–3(b)(3)(ii).
1813.301–71

Training.

All cardholders and approving officials must complete training prior to
receiving a purchase card. Training
will address the responsibilities of the
cardholder and approving official, prohibited purchases, purchase limitations, and sources of supply.
[65 FR 82296, Dec. 28, 2000]

1813.301–72

Approving official.

The approving official is the individual who reviews and approves a
cardholder’s monthly statement of purchases. The approving official shall be
the cardholder’s immediate or higher
level supervisor; in no case shall cardholders approve their own statement of
purchases. Unless center procedures
otherwise provide for their designation,
the procurement officer shall designate
approving officials.
1813.301–73

Program officials.

(a) The Langley Research Center, Office of Procurement (Code AG), is the
agency program coordinator.
(b) The procurement officer shall
identify the center program coordinator and the center billing office
point of contact, and provide their
names to the agency program coordinator.
[63 FR 40189, July 28, 1998, as amended at 64
FR 51079, Sept. 21, 1999]

1813.302

Purchase orders.

1813.302–1

General.

(a) See 1813.003(g).
[67 FR 50823, Aug. 6, 2002]

[63 FR 40189, July 28, 1998, as amended at 65
FR 12484, Mar. 9, 2000]

1813.302–70 Purchase orders under
section 8(a) of the Small Business
Act.

1813.301–70 Purchase card documentation.
Documentation of purchases shall be
minimized. For transactions below the

Purchase orders made using simplified acquisition procedures are authorized for 8(a) acquisitions under the
simplified acquisition threshold.

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1813.302–570

48 CFR Ch. 18 (10–1–02 Edition)

1813.302–570 NASA solicitation provisions.
(a)(1) The contracting officer may
use the provision at 1852.213–70, Offeror
Representations and Certifications—
Other Than Commercial Items, in simplified acquisitions exceeding the
mircro-purchase threshold that are for
other than commercial items. This provision shall not be used for acquisition
of commercial items as defined in FAR
2.101.
(2) This provision provides a single,
consolidated list of certifications and
representations for the acquisition of
other than commercial items using
simplified acquisition procedures and
is attached to the solicitation for
offerors to complete and return with
their offer.
(i) Use the provision with its Alternate I in solicitations for acquisitions
that are for, or specify the use of recovered materials (see FAR 23.4).
(ii) Use the provision with its Alternate II in solicitations for the acquisition of research, studies, supplies, or
services of the type normally acquired
from higher education institutions (see
FAR 26.3).
(iii) Use the provision with its Alternate III in solicitation which include
the clause at FAR 52.227–14, Rights in
Data—General (see FAR 27.404(d)(2) and
1827.404(d)).
(b) The contracting officer may insert a provision substantially the same
as the provision at 1852.213–71, Evaluation—Other than Commercial Items, in
solicitations using simplified acquisition procedures for other than commercial items when a trade-off source selection process will be used, that is,
factors in addition to technical acceptability and price will be considered.
(See FAR 13.106.)
[67 FR 38904, June 6, 2002, as amended at 67
FR 50823, Aug. 6, 2002]

1813.303 Blanket
ments (BPAs).

Purchase

Agree-

1813.303–3 Preparation
of
BPAs.
(NASA supplements paragraph (a))
(a)(4) Non-GS–1102 or –1105 personnel
shall not be authorized to place individual orders under a BPA in an
amount greater than $5,000. For sole
source orders above $2,500, a con-

tracting officer’s determination is required in accordance with FAR 13.106–
1(b)(1).
1813.307 Forms. (NASA supplements
paragraphs (b), (c), and (d))
(b) Installations may use locally prescribed forms.
(c) Installations may use locally prescribed forms.
(d) The SF 44 may be used for purchases of aviation fuel and oil of $10,000
or less.

PART 1814—SEALED BIDDING
Subpart 1814.2—Solicitation of Bids
Sec.
1814.201 Preparation of invitations for bids.
1814.201–5 Part IV—Representations and instructions.
1814.201–6 Solicitation provisions.
1814.201–670 NASA solicitation provisions.

Subpart 1814.3—Submission of Bids
1814.302

Bid submission.

Subpart 1814.4—Opening of Bids and
Award of Contract
1814.404 Rejection of bids.
1814.404–1 Cancellation of invitations after
opening.
1814.407 Mistakes in bids.
1814.407–3 Other mistakes disclosed before
award.
1814.407–4 Mistakes after award.
1814.408 Award.
1814.408–1 General.
AUTHORITY: 42 U.S.C. 2473(c)(1).
SOURCE: 61 FR 47079, Sept. 6, 1996, unless
otherwise noted.

Subpart 1814.2—Solicitation of
Bids
1814.201 Preparation of invitations for
bids.
1814.201–5 Part
IV—Representations
and instructions. (NASA supplements paragraph (c))
(c) Section M, Evaluation factors for
award.
(i) The contracting officer shall state
if award is to be made in the aggregate
(all-or-non basis) or by specified groups
of items.
(ii) if bidders are required to have
special technical qualifications because

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National Aeronautics and Space Administration
of the complexity of the equipment
being purchased or for some other reason, the contracting officer shall state
those qualifications.
1814.201–6

Solicitation provisions.

1814.201–670 NASA solicitation provisions.
(a) The contracting officer shall insert the provision at 1852.214–70, Caution to Offerors Furnishing Descriptive
Literature, in invitations for bids. See
FAR 52.214–21, Descriptive Literature.
(b) The contracting officer shall insert the provision at 1852.214–71, Grouping for Aggregate Award, in invitations
for bids, except for construction, when
it is in the Government’s best interest
not to make award for less than specified quantities solicited for certain
items or groupings of certain items. Insert the item numbers and/or descriptions applicable for the particular procurement.
(c) The contracting officer shall insert the provision at 1852.214–72, Full
Quantities, in invitations for bids, except for construction, when it is in the
Government’s best interest not to
make award for less than the full quantities solicited.
(d) If a pre-bid conference is planned,
the contracting officer shall insert the
provision at 1852.215–77, Preproposal/
Pre-bid Conference. See 1815.209–70(a).
[61 FR 47079, Sept. 6, 1996, as amended at 63
FR 9966, Feb. 27, 1998]

Subpart 1814.3—Submission of
Bids
1814.302 Bid submission. (NASA supplements paragraph (b))
(b) NASA contracting officers shall
not consider telegraphic bids communicated by the telephone.

Subpart 1814.4—Opening of Bids
and Award of Contract
1814.404

Rejection of bids.

1814.404–1 Cancellation of invitations
after opening. (NASA supplements
paragraphs (c) and (e))
(c) The authority to make the determination at FAR 14.404–1(c) is delegated to the contracting officer, except

1814.408–1

as provided in paragraph (e)(1) of this
subsection.
(e)(1) A determination that includes
an authorization to complete the acquisition through negotiation shall be
made by the procurement officer, in
consultation with the chief counsel.
1814.407

Mistakes in bids.

1814.407–3 Other mistakes disclosed
before award. (NASA supplements
paragraph (e))
(e) Procurement officers are authorized to make the determinations under
14.407–3 (a), (b), (c) and (d).
1814.407–4 Mistakes
after
award.
(NASA supplements paragraph (d))
(d) Determinations shall be made by
the procurement officer.
1814.408

Award.

1814.408–1 General.
(1) A notice of award as a specific
document is used when the contracting
officer needs to inform a responsible
bidder that its offer was determined to
be the most advantageous to the Government (considering only price and
price-related factors) and that the formal award will be made upon satisfaction of specified pre-performance conditions.
(2) The notice of award is not a contractual instrument. It does not authorize the successful bidder to perform and, in itself, does not obligate
the Government to award a contractual document. Its limited purpose is
to provide: evidence of the Government’s selection of the successful bidder; instruction to that bidder to satisfy specified pre-performance conditions; and a statement that the Government intends to award the contract
to the successful bidder upon satisfaction of these conditions if a contract is
awarded as a result of the invitation
for bids.
(3) Use of a notice of award is optional. The contracting officer may
issue the award document itself without first issuing a notice of award.
However, there are instances when a
notice of award should be considered,
for example, in construction contracts
where performance or payment bonds
are required. In such cases, the most

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Pt. 1815

48 CFR Ch. 18 (10–1–02 Edition)

cost effective technique is to require
only the successful bidder to provide
the necessary bonds. The notice of
award advises the successful bidder to
provide the bonds, and it also serves as
formal evidence from the Government
of the impending award if such evidence is required to secure the bonds.
(4) The notice of award shall not be
issued unless bids have been evaluated
and a selection made, and a definitive
contract document is ready for execution upon satisfaction of the conditions
specified in the notice. Upon satisfaction of these conditions, the approved
and executed contract instrument shall
be provided to the successful bidder.
(5) Since the notice of award is not a
contractual document authorizing performance, the period of performance of
the resultant contract shall not be
based on the date of issuance or receipt
of the notice of award. The period of
performance specified in the contract
shall be based on some other reference
point, such as the date the contract is
provided to the successful bidder, a mutually agreeable effective date of a
later authorization to proceed date.
(6) The notice of award can be issued
by any formal written means such as a
letter, telegram or electronic means.
The notice should be substantially the
same as the following format.

ument are at your own risk and are not recoverable under any Government contract
should the Government fail, for whatever
reason, to award you a contract in response
to the subject IFB.
If a contract is awarded after evidence of
satisfaction of the pre-performance conditions listed above is provided to the contracting officer by the specified due date, the
date of commencement of work will be provided with the formal award. This date will
be based on (g).
NOTES.—The contracting officer shall insert, where shown, the following information:
(a) Identification of the IFB by number and
title.
(b) Identification of the contractor’s bid.
(c) The award price.
(d) The preperformance conditions (e.g.,
any required payment and performance
bonds).
(e) The evidence required to satisfy the
pre-performance conditions (e.g., the actual
payment and performance bonds).
(f) The date by which the evidence must be
provided to the contracting officer.
(g) Identification of the date for commencement of performance. The period of
performance of the contract shall not be
based on the date of issuance or receipt of
the notice of award. It shall be based on the
date the contract is provided to the successful bidder, a mutually agreeable effective
date, or a later authorization to proceed
date.

PART 1815—CONTRACTING BY
NEGOTIATION

Format
Subject: Notice of Award—Invitation for
Bids (IFB) (a). This notice is to advise you
that your bid (b) in response to the subject
IFB has been determined to be the most advantageous to the Government (considering
only price and price-related factors). It is the
Government’s intention to award you a contract in the amount of (c) for this effort
pending satisfaction of the following pre-performance conditions: (d)
Evidence (e) of satisfaction of these conditions must be provided to the contracting officer by (f). In the event these conditions are
not satisfied by this date, the Government
reserves the right to award the contract to
the bidder who submitted the next most advantageous bid.
Please note that this notice of award is not
a contractual document. It does not obligate
the Government to award you, or any other
bidder, a contract relative to the subject
IFB, and it does not authorize you to proceed
with contract performance or incur costs
pursuant to such performance. Any costs incurred for contract performance prior to
your receipt of a fully executed contract doc-

Subpart 1815.2—Solicitation and Receipt of
Proposals and Information
Sec.
1815.201 Exchanges with industry before receipt of proposals.
1815.203 Requests for proposals.
1815.203–70 Installation reviews.
1815.203–71 Headquarters reviews.
1815.203–72 Risk Management.
1815.204 Contract format.
1815.204–2 Part I—The Schedule.
1815.204–5 Part IV—Representations and instructions.
1815.204–70 Page limitations.
1815.207 Handling proposals and information.
1815.207–70 Release of proposal information.
1815.207–71 Appointing
non-Government
evaluators as special Government employees.
1815.208 Submission, modification, revision,
and withdrawal of proposals.
1815.209 Solicitation provisions and contract clauses.
1815.209–70 NASA solicitation provisions.

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National Aeronautics and Space Administration

1815.201

Subpart 1815.3—Source Selection

Subpart 1815.6—Unsolicited Proposals

1815.300 Scope of subpart.
1815.300–70 Applicability of subpart.
1815.303 Responsibilities.
1815.304 Evaluation factors and significant
subfactors.
1815.304–70 NASA evaluation factors.
1815.305 Proposal evaluation.
1815.305–70 Identification of unacceptable
proposals.
1815.305–71 Evaluation of a single proposal.
1815.306 Exchanges with offerors after receipt of proposals.
1815.307 Proposal revisions.
1815.308 Source selection decision.
1815.370 NASA source evaluation boards.

1815.602 Policy.
1815.604 Agency points of contact.
1815.606 Agency procedures.
1815.606–70 Relationship of unsolicited proposals to NRAs.
1815.609 Limited use of data.
1815.609–70 Limited use of proposals.
1815.670 Foreign proposals.

Subpart 1815.70—Ombudsman
1815.7001 NASA Ombudsman Program.
1815.7002 Synopses of solicitations and contracts.
1815.7003 Contract clause.

Subpart 1815.4—Contract Pricing

AUTHORITY: 42 U.S.C. 2473(c)(1).

1815.403 Obtaining cost or pricing data.
1815.403–1 Prohibition on obtaining cost or
pricing data.
1815.403–170 Waivers of cost or pricing data.
1815.403–3 Requiring information other than
cost or pricing data.
1815.403–4 Requiring cost or pricing data.
1815.404 Proposal analysis.
1815.404–2 Information to support proposal
analysis.
1815.404–4 Profit.
1815.404–470 NASA Form 634.
1815.404–471 NASA structured approach for
profit or fee objective.
1815.404–471–1 General
1815.404–471–2 Performance risk.
1815.404–471–3 Contract type risk and working capital adjustment.
1815.404–471–4 Other considerations.
1815.404–471–5 Facilities capital cost of
money.
1815.404–471–6 Modification to structured
profit/fee approach for nonprofit organizations.
1815.404–472 Payment of profit or fee under
letter contracts.
1815.406 Documentation.
1815.406–1 Prenegotiation objectives.
1815.406–170 Content of the prenegotiation
position memorandum.
1815.406–171 Installation reviews.
1815.406–172 Headquarters reviews.
1815.406–3 Documenting the negotiation.
1815.407 Special cost or pricing areas.
1815.407–2 Make-or-buy programs.
1815.408 Solicitation provisions and contract clauses.
1815.408–70 NASA solicitation provisions
and contract clauses.

Subpart 1815.5—Preaward, Award, and
Postaward Notifications, Protests, and
Mistakes
1815.504 Award to successful offeror.
1815.506 Postaward debriefing of offerors.
1815.506–70 Debriefing of offerors—Major
System acquisitions.

SOURCE: 63 FR 9954, Feb. 27, 1998, unless
otherwise noted.

Subpart 1815.2—Solicitation and
Receipt of Proposals and Information
1815.201 Exchanges with industry before receipt of proposals. (NASA
supplements paragraphs (c) and (f))
(c)(6)(A) Except for acquisitions described in 1815.300–70(b), contracting officers shall issue draft requests for proposals (DRFPs) for all competitive negotiated acquisitions expected to exceed $1,000,000 (including all options or
later phases of the same project).
DRFPs shall invite comments from potential offerors on all aspects of the
draft solicitation, including the requirements, schedules, proposal instructions, and evaluation approaches.
Potential offerors should be specifically requested to identify unnecessary
or inefficient requirements. If the
DRFP contains Government-unique
standards, potential offerors should be
invited to identify voluntary consensus
standards that meet the Government’s
requirements as alternatives to Government-unique standards cited as requirements, in accordance with FAR
11.101 and OMB Circular A–119. Comments should also be requested on any
perceived safety, occupational health,
security (including information technology security), environmental, export
control,
and/or
other
programmatic risk issues associated with
performance of the work. When considered appropriate, the statement of
work or the specifications may be

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1815.203

48 CFR Ch. 18 (10–1–02 Edition)

issued in advance of other solicitation
sections.
(B) Contracting officers shall plan
the acquisition schedule to include
adequate time for issuance of the
DRFP, potential offeror review and
comment, and NASA evaluation and
disposition of the comments.
(C) When issuing DRFPs, potential
offerors should be advised that the
DRFP is not a solicitation and NASA is
not requesting proposals.
(D) Whenever feasible, contracting
officers should include a summary of
the disposition of significant DRFP
comments with the final RFP.
(E) If performance-based payments
are planned to be used in a competitive
negotiated acquisition, the DRFP shall
request potential offerors to suggest
terms, including performance events or
payment criteria. Contracting officers
shall use that information to establish
a common set of performance-based
payments parameters in the formal
RFP when practicable.
(F) The procurement officer may
waive the requirement for a DRFP
upon written determination that the
expected benefits will not be realized
given the nature of the supply or service being acquired. The DRFP shall not
be waived because of poor or inadequate planning.
(f)(i) Upon release of the formal RFP,
the contracting officer shall direct all
personnel associated with the acquisition to refrain from communicating
with prospective offerors and to refer
all inquiries to the contracting officer
or other authorized representative.
This procedure is commonly known as
a ‘‘blackout notice’’ and shall not be
imposed before release of the RFP. The
notice may be issued in any format
(e.g., letter or electronic) appropriate
to the complexity of the acquisition.
(ii) Blackout notices are not intended
to terminate all communication with
offerors. Contracting officers should
continue to provide information as
long as it does not create an unfair
competitive advantage or reveal proprietary data.
[63 FR 9954, Feb. 27, 1998, as amended at 63
FR 44408, Aug. 19, 1998; 65 FR 12484, Mar. 9,
2000; 65 FR 31102, May 16, 2000; 65 FR 37059,
June 13, 2000]

1815.203

Requests for proposals.

1815.203–70

Installation reviews.

(a) Installations shall establish procedures to review all RFPs before release. When appropriate given the complexity of the acquisition or the number of offices involved in solicitation
review, centers should consider use of a
single review meeting called a Solicitation Review Board (SRB) as a streamlined alternative to the serial or sequential coordination of the solicitation with reviewing offices. The SRB is
a meeting in which all offices having
review and approval responsibilities
discuss the solicitation and their concerns. Actions assigned and changes required by the SRB shall be documented.
(b) When source evaluation board
(SEB) procedures are used in accordance with 1815.370, the SEB shall review and approve the RFP prior to
issuance.
1815.203–71

Headquarters reviews.

For RFPs requiring Headquarters review and approval, the procurement officer shall submit ten copies of the
RFP to the Assistant Administrator
for Procurement (Code HS). Any significant information relating to the
RFP or the planned evaluation methodology omitted from the RFP itself
should also be provided.
[65 FR 12485, Mar. 9, 2000]

1815.203–72

Risk management.

In all RFPs and RFOs for supplies or
services for which a technical proposal
is required, proposal instructions shall
require offerors to identify and discuss
risk factors and issues throughout the
proposal where they are relevant, and
describe their approach to managing
these risks.
[65 FR 70316, Nov. 22, 2000]

1815.204

Contract format.

1815.204–2 Part
I—The
Schedule.
(NASA supplements paragraph (c))
(c) To the maximum extent practicable, requirements should be defined
as performance based specifications/

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statements of work that focus on required outcomes or results, not methods of performance or processes.
1815.204–5 Part
IV—Representations
and instructions. (NASA supplements paragraph (b))
(b) The information required in proposals should be kept to the minimum
necessary for the source selection decision.
1815.204–70 Page limitations.
(a) Technical and contracting personnel will agree on page limitations
for their respective portions of an RFP.
Unless approved in writing by the procurement officer, the page limitation
for the contracting portion of an RFP
(all sections except Section C, Description/specifications/work
statement)
shall not exceed 150 pages, and the page
limitation for the technical portion
(Section C) shall not exceed 200 pages.
Attachments to the RFP count as part
of the section to which they relate. In
determining page counts, a page is defined as one side of a sheet, 81⁄2″ × 11″,
with at least one inch margins on all
sides, using not smaller than 12-point
type. Foldouts count as an equivalent
number of 81⁄2″ × 11″ pages. The metric
standard format most closely approximating the described standard 81⁄2″ × 11″
size may also be used.
(b) Page limitations shall also be established for proposals submitted in
competitive acquisitions. Accordingly,
technical and contracting personnel
will agree on page limitations for each
portion of the proposal. Unless a different limitation is approved in writing
by the procurement officer, the total
initial proposal, excluding title pages,
tables of content, and cost/price information, shall not exceed 500 pages
using the page definition of 1815.204–
70(a). Firm page limitations shall also
be established for final proposal revisions, if requested. The appropriate
page limitations for final proposal revisions should be determined by considering the complexity of the acquisition
and the extent of any discussions. The
same page limitations shall apply to
all offerors. Pages submitted in excess
of specified limitations will not be
evaluated by the Government and will
be returned to the offeror.

1815.207–70

1815.207 Handling proposals and information.
1815.207–70 Release of proposal information.
(a) NASA personnel participating in
any way in the evaluation may not reveal any information concerning the
evaluation to anyone not also participating, and then only to the extent
that the information is required in connection with the evaluation. When nonNASA personnel participate, they shall
be instructed to observe these restrictions.
(b)(1) Except as provided in paragraph (b)(2) of this section, the procurement officer is the approval authority to disclose proposal information outside the Government. If outside
evaluators are involved, this authorization may be granted only after compliance with FAR 37.2 and 1837.204, except
that the determination of unavailability of Government personnel required by FAR 37.2 is not required for
disclosure of proposal information to
JPL employees.
(2) Proposal information in the following classes of proposals may be disclosed with the prior written approval
of a NASA official one level above the
NASA program official responsible for
the overall conduct of the evaluation.
If outside evaluators are involved, the
determination of unavailability of Government personnel required by FAR
37.2 is not required for disclosure in
these instances.
(i) Proposals submitted in response
to broad agency announcements such
as Announcements of Opportunity and
NASA Research Announcements;
(ii) Unsolicited proposals; and
(iii) SBIR and STTR proposals.
(3) If JPL personnel, in evaluating
proposal information released to them
by NASA, require assistance from nonJPL, non-Government evaluators, JPL
must obtain written approval to release the information in accordance
with paragraphs (b)(1) and (b)(2) of this
section.
[63 FR 9954, Feb. 27, 1998, as amended at 63
FR 44408, Aug. 19, 1998]

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48 CFR Ch. 18 (10–1–02 Edition)

1815.207–71 Appointing
non-Government evaluators as special Government employees.
(a) Except as provided in paragraph
(c) of this section, non-Government
evaluators, except employees of JPL,
shall be appointed as special Government employees.
(b) Appointment as a special Government employee is a separate action
from the approval required by paragraph 1815.207–70(b) and may be processed concurrently. Appointment as a
special Government employee shall be
made by:
(1) The NASA Headquarters personnel office when the release of proposal information is to be made by a
NASA Headquarters office; or
(2) The installation personnel office
when the release of proposal information is to be made by the installation.
(c) Non-Government evaluators need
not be appointed as special Government employees when they evaluate:
(1) Proposals submitted in response
to broad agency announcements such
as Announcements of Opportunity and
NASA Research Announcements;
(2) Unsolicited proposals; and
(3) SBIR and STTR proposals.
[63 FR 9954, Feb. 27, 1998, as amended at 63
FR 44408, Aug. 19, 1998]

1815.208 Submission, modification, revision, and withdrawal of proposals. (NASA supplements paragraph (b))
(b) The FAR late proposal criteria do
not apply to Announcements of Opportunity (see 1872.705–1 paragraph VII),
NASA Research Announcements (see
1852.235–72), and Small Business Innovative Research (SBIR) Phase I and
Phase II solicitations, and Small Business Technology Transfer (STTR) solicitations. For these solicitations, proposals or proposal modifications received from qualified firms after the
latest date specified for receipt may be
considered if a significant reduction in
cost to the Government is probable or
if there are significant technical advantages, as compared with proposals
previously received. In such cases, the
project office shall investigate the circumstances surrounding the late submission, evaluate its content, and submit written recommendations and find-

ings to the selection official or a designee as to whether there is an advantage to the Government in considering
it. The selection official or a designee
shall determine whether to consider
the late submission.
1815.209 Solicitation provisions and
contract clauses. (NASA supplements paragraph (a))
(a) The contracting officer shall insert FAR 52.215–1 in all competitive negotiated solicitations.
1815.209–70
sions.

NASA

solicitation

(a) The contracting officer shall insert the provision at 1852.215–77,
Preproposal/Pre-bid
Conference,
in
competitive requests for proposals and
invitations for bids where the Government intends to conduct a prepoposal
or pre-bid conference. Insert the appropriate specific information relating to
the conference.
(b) When it is not in the Government’s best interest to make award for
less than the specified quantities solicited for certain items or groupings of
items, the contracting officer shall insert the provision at 1852.214–71, Grouping for Aggregate Award. See 1814.201–
670(b).
(c) When award will be made only on
the full quantities solicited, the contracting officer shall insert the provision at 1852.214–72, Full Quantities. See
1814.201–670(c).
(d) The contracting officer shall insert the provision at 1852.215–81, Proposal Page Limitations, in all competitive requests for proposals.
[63 FR 9954, Feb. 27, 1998, as amended at 67
FR 50824, Aug. 6, 2002]

Subpart 1815.3—Source Selection
1815.300

Scope of subpart.

1815.300–70

Applicability of subpart.

(a)(1) Except as indicated in paragraph (b) of this section, NASA competitive negotiated acquisitions shall
be conducted as follows:
(i) Acquisitions of $50 million or
more—in accordance with FAR 15.3 and
this subpart.

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National Aeronautics and Space Administration
(ii) Other acquisitions—in accordance
with FAR 15.3 and this subpart except
section 1815.370.
(2) Estimated dollar values of acquisitions shall include the values of multiple awards, options, and later phases
of the same project.
(b) FAR 15.3 and this subpart are not
applicable to acquisitions conducted
under the following procedures:
(1) MidRange (see part 1871).
(2) Announcements of Opportunity
(see part 1872).
(3) NASA Research Announcements
(see 1835.016–71).
(4) The Small Business Innovative
Research (SBIR) program and the
Small Business Technology Transfer
(STTR) pilot program under the authority of the Small Business Act (15
U.S.C. 638).
(5) Architect and Engineering (A&E)
services (see FAR 36.6 and 1836.6).
[63 FR 9954, Feb. 27, 1998, as amended at 64
FR 48561, Sept. 7, 1999]

1815.303 Responsibilities. (NASA supplements paragraphs (a) and (b))
(a) The SSA shall be established at
the lowest reasonable level for each acquisition. Notwithstanding the FAR
designation of the contracting officer
as SSA, the SSA for center acquisitions shall be established in accordance
with center procedures. For acquisitions designated as Headquarters selections, the SSA will be identified as part
of the Master Buy Plan process (see
1807.71).
(b)(i) The source selection authority
(SSA) is the Agency official responsible
for proper and efficient conduct of the
source selection process and for making the final source selection decision.
The SSA has the following responsibilities in addition to those listed in the
FAR:
(A) Approve the evaluation factors,
subfactors, the weight of the evaluation factors and subfactors, and any
special standards of responsibility (see
FAR 9.104–2) before release of the RFP,
or delegate this authority to appropriate management personnel;
(B) Appoint the source selection
team. However, when the Administrator will serve as the SSA, the Official-in-Charge of the cognizant Head-

1815.304–70

quarters Program Office will appoint
the team; and
(C) Provide the source selection team
with appropriate guidance and special
instructions to conduct the evaluation
and selection procedures.
(b)(2) Approval authorities for Acquisition Plans and Acquisition Strategy
Meetings are in accordance with
1807.103.
[63 FR 9954, Feb. 27, 1998, as amended at 63
FR 44408, Aug. 19, 1998; 65 FR 30013, May 10,
2000]

1815.304 Evaluation factors and significant subfactors. (NASA supplements paragraph (c))
(c)(4)(A) The extent of participation
of small disadvantaged business (SDB)
concerns shall be evaluated as a subfactor under the Mission Suitability
factor. If a Mission Suitability factor is
not used, the SDB participation shall
be evaluated as a separate factor or
subfactor, as appropriate.
(B) SDB concerns that choose the
FAR 19.11 price evaluation adjustment
shall receive the lowest possible score/
rating under the FAR 15.304(c)(4) evaluation.
[64 FR 25214, May 11, 1999]

1815.304–70 NASA evaluation factors.
(a) Typically, NASA establishes three
evaluation factors: Mission Suitability,
Cost/Price, and Past Performance.
Evaluation factors may be further defined by subfactors. Evaluation subfactors should be structured to identify
significant discriminators, or ‘‘key
swingers’’—the essential information
required to support a source selection
decision. Too many subfactors undermine effective proposal evaluation. All
evaluation subfactors should be clearly
defined to avoid overlap and redundancy.
(b) Mission Suitability factor. (1)
This factor indicates the merit or excellence of the work to be performed or
product to be delivered. It includes, as
appropriate, both technical and management subfactors. Mission Suitability shall be numerically weighted
and scored on a 1000-point scale.
(2) The Mission Suitability factor
may identify evaluation subfactors to
further define the content of the factor. Each Mission Suitability subfactor

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1815.305

48 CFR Ch. 18 (10–1–02 Edition)

shall be weighted and scored. The adjectival
rating
percentages
in
1815.305(a)(3)(A) shall be applied to the
subfactor weight to determine the
point score. The number of Mission
Suitability subfactors is limited to
five. The Mission Suitability evaluation subfactors and their weights shall
be identified in the RFP.
(3) For cost reimbursement acquisitions, the Mission Suitability evaluation shall also include the results of
any cost realism analysis. The RFP
shall notify offerors that the realism of
proposed costs may significantly affect
their Mission Suitability scores.
(4) If the solicitation requires the
submission of a Safety and Health Plan
(see 1823.7001(c) and NPG 8715.3, NASA
Safety Manual, Appendix H), safety
and health must be a consideration in
the evaluation. For acquisitions valued
at $10 million or more, or $25 million or
more for commercial items, then the
Mission Suitability factor, if used,
shall include a subfactor for safety and
health. Otherwise, use of that subfactor is optional.
(c) Cost/Price factor. This factor
evaluates the reasonableness and, if
necessary, the cost realism, of proposed
costs/prices. The Cost/Price factor is
not numerically weighted or scored.
(d) Past Performance factor. (1) This
factor indicates the relevant quantitative and qualitative aspects of each
offeror’s record of performing services
or delivering products similar in size,
content, and complexity to the requirements of the instant acquisition.
(2) The RFP shall instruct offerors to
submit data (including data from relevant Federal, State, and local governments and private contracts) that can
be used to evaluate their past performance. Typically, the RFP will require:
(i) A list of contracts similar in size,
content, and complexity to the instant
acquisition, showing each contract
number, the type of contract, a brief
description of the work, and a point of
contact from the organization placing
the contract. Normally, the requested
contracts are limited to those received
in the last three years. However, in acquisitions that require longer periods
to demonstrate performance quality,
such as hardware development, the

time period should be tailored accordingly.
(ii) The identification and explanation of any cost overruns or
underruns, completion delays, performance problems, and terminations.
(3) The contracting officer may start
collecting past performance data before proposal receipt. One method for
early evaluation of past performance is
to request offerors to submit their past
performance information in advance of
the proposal due date. The RFP could
also include a past performance questionnaire for offerors to send their previous customers with instructions to
return the completed questionnaire to
the Government. Failure of the offeror
to submit its past performance information early or of the customers to
submit the completed questionnaires
shall not be a cause for rejection of the
proposal nor shall it be reflected in the
Government’s
evaluation
of
the
offeror’s past performance.
(4) The contracting officer shall
evaluate the offeror’s past performance
in occupational health, security, safety, and mission success (e.g., mishap
rates and problems in delivered hardware and software that resulted in mishaps or failures) when these areas are
germane to the requirement.
[63 FR 9954, Feb. 27, 1998, as amended at 64
FR 25215, May 11, 1999; 65 FR 30013, May 10,
2000; 65 FR 37059, June 13, 2000]

1815.305 Proposal evaluation. (NASA
supplements paragraphs (a) and
(b))
(a) Each proposal shall be evaluated
to identify and document:
(i) Any deficiencies;
(ii) All strengths and significant
weaknesses;
(iii) The numerical score and/or adjectival rating of each Mission Suitability subfactors and for the Mission
Suitability factor in total;
(iv) Cost realism, if appropriate;
(v) The Past Performance evaluation
factor; and
(vi) Any programmatic risk to mission success, e.g., technical, schedule,
cost, safety, occupational health, security, export control, or environmental.
Risks may result from the offeror’s
technical
approach,
manufacturing
plan, selection of materials, processes,

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National Aeronautics and Space Administration
equipment, or as a result of the cost,
schedule, and performance impacts associated with its approach. Risk evaluations must consider the probability
of the risk occurring, the impact and
severity of the risk, the timeframe
when the risk should be addressed, and
the alternatives available to meet the
requirements. Risk assessments shall
be considered in determining Mission
Suitability strengths, weaknesses, deficiencies, and numerical or adjectival
ratings. Identified risks and the potential for cost impact shall be considered
in the cost or price evaluation.
(a)(1) Cost or price evaluation.
(A) Cost or pricing data shall not be
requested in competitive acquisitions.
See 1815.403–1(b)(1) and 1815.403–3(b).
(B) When contracting on a basis
other than firm-fixed-price, the contracting officer shall perform price and
cost realism analyses to assess the reasonableness and realism of the proposed costs. A cost realism analysis
will determine if the costs in an
offeror’s proposal are realistic for the
work to be performed, reflect a clear
understanding of the requirements, and
are consistent with the various elements of the offeror’s technical proposal. The analysis should include:
(a) The probable cost to the Government of each proposal, including any
recommended additions or reductions
in materials, equipment, labor hours,
direct rates, and indirect rates. The
probable cost should reflect the best estimate of the cost of any contract
which might result from that offeror’s
proposal.

1815.305

(b) The differences in business methods, operating procedures, and practices as they affect cost.
(c) A level of confidence in the probable cost assessment for each proposal.
(C) The cost realism analysis may result in adjustments to Mission Suitability scores in accordance with the
procedure described in 1815.305(a)(3)(B).
(a)(2) Past performance evaluation.
(A) The Past Performance evaluation
assesses the contractor’s performance
under previously awarded contracts.
(B) The evaluation may be limited to
specific areas of past performance considered most germane for the instant
acquisition. It may include any or all
of the items listed in FAR 42.1501, and/
or any other aspects of past performance considered pertinent to the solicitation requirements or challenges. Regardless of the areas of past performance selected for evaluation, the same
areas shall be evaluated for all offerors
in that acquisition.
(C) Questionnaires and interviews
may be used to solicit assessments of
the offerors’s performance, as either a
prime or subcontractor, from the
offeror’s previous customers.
(D) All pertinent information, including customer assessments and any offeror rebuttals, will be made part of
the source selection records and included in the evaluation.
(a)(3) Technical Evaluation.
(A) Mission Suitability subfactors
and the total Mission Suitability factor shall be evaluated using the following adjectival ratings, definitions,
and percentile ranges.
Percentile
range

Adjectival rating

Definitions

Excellent ..........................

A comprehensive and thorough proposal of exceptional merit with one or more significant strengths. No deficiency or significant weakness exists.
A proposal having no deficiency and which demonstrates over-all competence. One
or more significant strengths have been found, and strengths outbalance any
weaknesses that exist.
A proposal having no deficiency and which shows a reasonably sound response.
There may be strengths or weaknesses, or both. As a whole, weaknesses not offset by strengths do not significantly detract from the offeror’s response.
A proposal having no deficiency and which has one or more weaknesses. Weaknesses outbalance any strengths.
A proposal that has one or more deficiencies or significant weaknesses that demonstrate a lack of overall competence or would require a major proposal revision
to correct.

Very Good .......................

Good ...............................

Fair ..................................
Poor .................................

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91–100
71–90

51–70

31–50
0–30

1815.305–70

48 CFR Ch. 18 (10–1–02 Edition)

(B) When contracting on a cost reimbursement basis, the Mission Suitability evaluation shall reflect the results of any required cost realism analysis performed under the cost/price factor. A structured approach shall be
used to adjust Mission Suitability
scores based on the degree of assessed
cost realism. An example of such an approach would:
(a) Establish a threshold at which
Mission Suitability adjustments would
start. The threshold should reflect the
acquisition’s estimating uncertainty

(i.e., the higher the degree of estimating uncertainty, the higher the
threshold);
(b) Use a graduated scale that proportionally adjusts a proposal’s Mission
Suitability score for its assessed cost
realism;
(c) Affect a significant number of
points to induce realistic pricing;
(d) Calculate a Mission Suitability
point adjustment based on the percentage difference between proposed and
probable cost as follows:
Point adjustment

Services

Hardware development

±5 percent .......................................................................
±6 to 10 percent ..............................................................
±11 to 15 percent ............................................................
±16 to 20 percent ............................................................
±21 to 30 percent ............................................................
±more than 30 percent ....................................................

±30 percent .....................................................................
±31 to 40 percent ............................................................
±41 to 50 percent ............................................................
±51 to 60 percent ............................................................
±61 to 70 percent ............................................................
±more than 70 percent ....................................................

(a)(4) The cost or price evaluation,
specifically the cost realism analysis,
often requires a technical evaluation of
proposed costs. Contracting officers
may provide technical evaluators a
copy of the cost volume or relevant information from it to use in the analysis.
(b) The contracting officer is authorized to make the determination to reject all proposals received in response
to a solicitation.
[63 FR 9954, Feb. 27, 1998, as amended at 63
FR 44408, Aug. 19, 1998; 65 FR 37059, June 13,
2000]

1815.305–70 Identification of unacceptable proposals.
(a) The contracting officer shall not
complete the initial evaluation of any
proposal when it is determined that the
proposal is unacceptable because:
(1) It does not represent a reasonable
initial effort to address the essential
requirements of the RFP or clearly
demonstrates that the offeror does not
understand the requirements;
(2) In research and development acquisitions, a substantial design drawback is evident in the proposal, and
sufficient correction or improvement
to consider the proposal acceptable
would require virtually an entirely new
technical proposal; or

(3) It contains major eficiencies or
omissions or out-of-line costs which
discussions with the offeror could not
reasonably be expected to cure.
(b) The contracting officer shall document the rationale for discontinuing
the initial evaluation of a proposal in
accordance with this section.
[63 FR 9954, Feb. 27, 1998, as amended at 63
FR 44408, Aug. 19, 1998]

1815.305–71 Evaluation of a single proposal.
(a) If only one proposal is received in
response to the solicitation, the contracting officer shall determine if the
solicitation was flawed or unduly restrictive and determine if the single
proposal is an acceptable proposal.
Based on these findings, the SSA shall
direct the contracting officer to:
(1) Award without discussions provided for contracting officer determines that adequate price competition
exists (see FAR 15.403–1(c)(1)(ii));
(2) Award after negotiating an acceptable contract. (The requirement
for submission of cost or pricing data
shall be determined in accordance with
FAR 15.403–1); or
(3) Reject the proposal and cancel the
solicitation.
(b) The procedure in 1815.305–71(a)
also applies when the number of proposals equals the number of awards

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National Aeronautics and Space Administration
contemplated or when only one acceptable proposal is received.
1815.306 Exchanges with offerors after
receipt of proposals. (NASA supplements paragraphs (c), (d), and (e))
(c)(2) A total of no more than three
proposals shall be a working goal in establishing the competitive range. Field
installations may establish procedures
for approval of competitive range determinations commensurate with the
complexity or dollar value of an acquisition.
(d)(3)(A) The contracting officer shall
identify any cost/price elements that
do not appear to be justified and encourage offerors to submit their most
favorable and realistic cost/price proposals, but shall not discuss, disclose,
or compare cost/price elements of any
other offeror. The contracting officer
shall question inadequate, conflicting,
unrealistic, or unsupported cost information;
differences
between
the
offeror’s proposal and most probable
cost assessments; cost realism concerns; differences between audit findings and proposed costs; proposed rates
that are too high/low; and labor mixes
that do not appear responsive to the requirements. No agreement on cost/
price elements or a ‘‘bottom line’’ is
necessary.
(B) The contracting officer shall discuss contract terms and conditions so
that a ‘‘model’’ contract can be sent to
each offeror with the request for final
proposal revisions. If the solicitation
allows, any proposed technical performance capabilities above those specified in the RFP that have value to the
Government and are considered proposal strengths should be discussed
with the offeror and proposed for inclusion in that offeror’s ‘‘model’’ contract.
If the offeror declines to include these
strengths in its ‘‘model’’ contract, the
Government evaluators should reconsider
their
characterization
as
strengths.
(e)(1) In no case shall the contacting
officer relax or amend RFP requirements for any offeror without amending the RFP and permitting the other
offerors an opportunity to propose
against the relaxed requirements.
[63 FR 9954, Feb. 27, 1998, as amended at 63
FR 44408, Aug. 19, 1998]

1815.308

1815.307 Proposal revisions. (NASA
supplements paragraph (b))
(b)(i) The request for final proposal
revisions (FPRs) shall also:
(A) Instruct offerors to incorporate
all changes to their offers resulting
from discussions, and require clear
traceability from initial proposals;
(B) Require offerors to complete and
execute the ‘‘model’’ contract, which
includes any special provisions or performance capabilities the offeror proposed above those specified in the RFP;
(C) Caution offerors against unsubstantiated changes to their proposals;
and
(D) Establish a page limit for FPRs.
(ii) Approval of the Assistant Administrator for Procurement (Code HS) is
required to reopen discussions for acquisitions of $50 million or more. Approval of the procurement officer is required for all other acquisitions.
(iii) Proposals are rescored based on
FPR evaluations. Scoring changes between initial and FPRs shall be clearly
traceable.
[63 FR 9954, Feb. 27, 1998, as amended at 63
FR 44409, Aug. 19, 1998]

1815.308 Source selection decision.
(NASA paragraphs (1), (2) and (3))
(1) All significant evaluation findings
shall be fully documented and considered in the source selection decision. A
clear and logical audit trail shall be
maintained for the rationale for ratings and scores, including a detailed
account of the decisions leading to the
selection. Selection is made on the
basis of the evaluation criteria established in the RFP.
(2) Before aware, the SSA shall sign a
source selection statement that clearly
and succinctly justifies the selection.
Source selection statements must describe: the acquisition; the evaluation
procedures; the substance of the Mission Suitability evaluation; and the
evaluation of the Cost/Price and Past
Performance factors. The statement
also addresses unacceptable proposals,
the competitive range determination,
late proposals, or any other considerations pertinent to the decision. The
statement shall not reveal any confidential business information. Except
for certain major system acquisition
competitions (see 1815.506–70), source

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1815.370

48 CFR Ch. 18 (10–1–02 Edition)

selection statements shall be releasable to competing offerors and the general public upon request. The statement shall be available to the Debriefing Official to use in postaward
debriefings of unsuccessful offerors and
shall be provided to debriefed offerors
upon request.
(3) Once the selection decision is
made, the contracting officer shall
award the contract.
1815.370 NASA
source
evaluation
boards.
(a) The source evaluation board
(SEB) procedures shall be used for
those
acquisitions
identified
in
1815.300–700(a)(1)(i).
(b) The SEB assists the SSA by providing expert analyses of the offerors’
proposals in relation to the evaluation
factors and subfactors contained in the
solicitation. The SEB will prepare and
present its findings to the SSA, avoiding trade-off judgments among either
the individual offerors or among the
evaluation factors. The SEB will not
make recommendations for selection
to the SSA.
(c) Designation. (1) The SEB shall be
comprised of competent individuals
fully
qualified
to
identify
the
strengths, weaknesses, and risks associated with proposals submitted in response to the solicitation. The SEB
shall be appointed as early as possible
in the acquisition process, but not
later than acquisition plan or acquisition strategy meeting approval.
(2) While SEB participants are normally drawn from the cognizant installation, personnel from other NASA installations or other Government agencies may participate. When it is necessary to disclose the proposal (in
whole or in part) outside the Government, approval shall be obtained in accordance with 1815.207–70.
(3) When Headquarters retains SSA
authority, the Headquarters Office of
Procurement (Code HS) must concur on
the SEB appointments. Qualifications
of voting members, including functional title, grade level, and related
SEB experience, shall be provided.
(d) Organization. (1) The organization
of an SEB is tailored to the requirements of the particular acquisition.
This can range from the simplest situa-

tion, where the SEB conducts the evaluation and factfinding without the use
of committees or panels/consultants (as
described in paragraphs (d)(4) and (5) of
this section) to a highly complex situation involving a major acquisition
where two or more committees are
formed and these, in turn, are assisted
by special panels or consultants in particular areas. The number of committees or panels/consultants shall be kept
to a minimum.
(2) The SEB Chairperson is the principal operating executive of the SEB.
The Chairperson is expected to manage
the team efficiently without compromising the validity of the findings provided to the SSA as the basis for a
sound selection decision.
(3) The SEB Recorder functions as
the principal administrative assistant
to the SEB Chairperson and is principally responsible for logistical support and recordkeeping of SEB activities.
(4) An SEB committee functions as a
factfinding arm of the SEB, usually in
a broad grouping of related disciplines
(e.g., technical or management). The
committee evaluates in detail each
proposal, or portion thereof, assigned
by the SEB in accordance with the approved evaluation factors and subfactors and summarizes its evaluation in a
written report to the SEB. The committee will also respond to requirements assigned by the SEB, including
further justification or reconsideration
of its findings. Committee chairpersons
shall manage the administrative and
procedural matters of their committees.
(5) An SEB panel or consultant functions as a factfinding arm of the committee in a specialized area of the committee’s responsibilities. Panels are established or consultants named when a
particular area requires deeper analysis than the committee can provide.
(6) The total of all such evaluators
(committees, panels, consultants, etc.
excluding SEB voting members and ex
officio members) shall be limited to a
maximum of 20, unless approved in
writing by the procurement officer.
(e) Voting members. (1) Voting members of the SEB shall include people
who will have key assignments on the

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National Aeronautics and Space Administration
project to which the acquisition is directed. However, it is important that
this should be tempered to ensure objectivity and to avoid an improper balance. It may even be appropriate to
designate a management official from
outside the project as SEB Chairperson.
(2) Non-government personnel shall
not serve as voting members of an
SEB.
(3) The SEB shall review the findings
of committees, panels, or consultants
and use its own collective judgment to
develop the SEB evaluation findings
reported to the SSA. All voting members of the SEB shall have equal status
as rating officials.
(4) SEB membership shall be limited
to a maximum of 7 voting individuals.
Wherever feasible, an assignment to
SEB membership as a voting member
shall be on a full-time basis. When not
feasible, SEB membership shall take
precedence over other duties.
(5) The following people shall be voting members of all SEBs:
(i) Chairperson.
(ii) A senior, key technical representative for the project.
(iii) An experienced procurement representative.
(iv) A senior Safety & Mission Assurance (S&MA) representative, as appropriate.
(v) Committee chairpersons (except
where this imposes an undue workload).
(f) Ex officio members. (1) The number
of nonvoting ex officio (advisory) members shall be kept as small as possible.
Ex officio members should be selected
for the experience and expertise they
can provide to the SEB. Since their advisory role may require access to highly sensitive SEB material and findings,
ex officio membership for persons other
than those identified in paragraph (f)(3)
of this section is discouraged.
(2) Nonvoting ex officio members
may state their views and contribute
to the discussions in SEB deliberations, but they may not participate in
the actual rating process. However, the
SEB recorder should be present during
rating sessions.
(3) For field installation selections,
the following shall be nonvoting ex
officio members on all SEBs:

1815.370

(i) Chairpersons of SEB committees,
unless designated as voting members.
(ii) The procurement officer of the installation, unless designated a voting
member.
(iii) The contracting officer responsible for the acquisition, unless designated a voting member.
(iv) The Chief Counsel and/or designee of the installation.
(v) The installation small business
specialist.
(vi) The SEB recorder.
(g) Evaluation. (1) If committees are
used, the SEB Chairperson shall send
them the proposals or portions thereof
to be evaluated, along with instructions regarding the expected function
of each committee, and all data considered necessary or helpful.
(2) While oral reports may be given to
the SEB, each committee shall submit
a written report which should include
the following:
(i) Copies of individual worksheets
and supporting comments to the lowest
level evaluated;
(ii) An evaluation sheet summarized
for the committee as a whole; and
(iii) A statement for each proposal
describing any strengths, deficiencies,
or significant weaknesses which significantly affected the evaluation and
stating any reservations or concerns,
together with supporting rationale,
which the committee or any of its
members want to bring to the attention of the SEB.
(3) The SEB process must be adequately documented. Clear traceability
must exist at all levels of the SEB
process. All reports submitted by committees or panels will be retained as
part of the SEB records.
(4) Each voting SEB member shall
thoroughly review each proposal and
any committee reports and findings.
The SEB shall rate or score the proposals for each evaluation factor and
subfactor according to its own collective judgment. SEB minutes shall reflect this evaluation process.
(h) SEB presentation. (1) The SEB
Chairperson shall brief the SSA on the
results of the SEB deliberations to permit an informed and objective selection of the best source(s) for the particular acquisition.

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1815.370

48 CFR Ch. 18 (10–1–02 Edition)

(2) The presentation shall focus on
the significant strengths, deficiencies,
and significant weaknesses found in
the proposals, the probable cost of each
proposal, and any significant issues
and problems identified by the SEB.
This presentation must explain any applicable special standards of responsibility; evaluation factors and subfactors; the significant strengths and significant weaknesses of the offerors; the
Government cost estimate, if applicable; the offerors’ proposed cost/price;
the probable cost; the proposed fee arrangements; and the final adjectival
ratings and scores to the subfactor
level.
(3) Attendance at the presentation is
restricted to people involved in the selection process or who have a valid
need to know. The designated individuals attending the SEB presentation(s)
shall:
(i) Ensure that the solicitation and
evaluation processes complied with all
applicable agency policies and that the
presentation accurately conveys the
SEB’s activities and findings;
(ii) Not change the established evaluation factors, subfactors, weights, or
scoring systems; or the substance of
the SEB’s findings. They may, however, advise the SEB to rectify procedural omissions, irregularities or inconsistencies, substantiate its findings,
or revise the presentation.
(4) The SEB recorder will coordinate
the formal presentation including arranging the time and place of the presentation, assuring proper attendance,
and distributing presentation material.
(5) For Headquarters selections, the
Headquarters Office of Procurement
(Code HS) will coordinate the presentation, including approval of attendees.
When the Administrator is the SSA, a
preliminary presentation should be
made to the center director and to the
Official-in-Charge of the cognizant
Headquarters Program Office.
(i) Recommended SEB presentation format. (1) Identification of the acquisition.
Identifies the installation, the nature
of the services or hardware to be acquired, some quantitative measure including the Government cost estimate
for the acquisition, and the planned
contractual arrangement. Avoids detailed objectives of the acquisition.

(2) Background. Identifies any earlier
phases of a phased acquisition or, as in
the case of continuing support services,
identifies the incumbent and any consolidations or proposed changes from
the existing structure.
(3) Evaluation factors, and subfactors.
Explains the evaluation factors, subfactors, and any special standards of
responsibility. Lists the relative order
of importance of the evaluation factors
and the numerical weights of the Mission Suitability subfactors. Presents
the adjectival scoring system used in
the Mission Suitability and Past Performance evaluations.
(4) Sources. Indicates the number of
offerors solicited and the number of
offerors expressing interest (e.g., attendance at a preproposal conference).
Identifies the offerors submitting proposals, indicating any small businesses,
small disadvantaged businesses, and
women-owned businesses.
(5) Summary of findings. Lists the initial and final Mission Suitability ratings and scores, the offerors’ proposed
cost/prices, and any assessment of the
probable costs. Introduces any clear
discriminator, problem, or issue which
could affect the selection. Addresses
any competitive range determination.
(6) Significant strengths, deficiencies,
and significant weaknesses of offerors.
Summarizes the SEB’s findings, using
the following guidelines:
(i) Present only the significant
strengths, deficiencies, and significant
weaknesses of individual offerors.
(ii) Directly relate the significant
strengths, deficiencies, and significant
weaknesses to the evaluation factors
and subfactors.
(iii) Indicate the results and impact,
if any, of discussions and FPRs on ratings and scores.
(7) Final Mission Suitability Ratings
and Scores. Summarizes the evaluation
subfactors,
the
maximum
points
achievable, and the scores of the
offerors in the competitive range.
(8) Final cost/price evaluation. Summarizes proposed cost/prices and any probable costs associated with each offeror
including proposed fee arrangements.
Presents the data as accurately as possible, showing SEB adjustments to
achieve comparability. Identifies the
SEB’s confidence in the probable costs

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National Aeronautics and Space Administration
of the individual offerors, noting the
reasons for low or high confidence.
(9) Past performance. Reflects the
summary conclusions, supported by
specific case data.
(10) Special interest. Includes only information of special interest to the
SSA that has not been discussed elsewhere, e.g., procedural errors or other
matters that could affect the selection
decision.
(j) A source selection statement shall
be prepared in accordance with 1815.308.
For installation selections, the installation Chief Counsel or designee will
prepare the source selection statement.
For Headquarters selections, the Office
of General Counsel or designee will prepare the statement.
[63 FR 9954, Feb. 27, 1998, as amended at 63
FR 44409, Aug. 19, 1998; 65 FR 30013, May 10,
2000; 65 FR 38777, June 22, 2000]

Subpart 1815.4—Contract Pricing
1815.403 Obtaining
data.

cost

or

pricing

1815.403–1 Prohibition on obtaining
cost or pricing data. (NASA supplements paragraphs (b) and (c))
(b)(1) The adequate price competition
exception is applicable to both fixedprice and cost-reimbursement type acquisitions. Contracting officers shall
assume that all competitive acquisitions qualify for this exception.
(c)(4) Waivers of the requirement for
submission of cost or pricing data shall
be prepared in accordance with FAR
1.704. A copy of each waiver shall be
sent to the Headquarters Office of Procurement (Code HK).
1815.403–170 Waivers of cost or pricing
data.
(a) NASA has waived the requirement
for the submission of cost or pricing
data when contracting with the Canadian Commercial Corporation (CCC).
This waiver applies to the CCC and its
subcontractors. The CCC will provide
assurance of the fairness and reasonableness of the proposed price. This assurance should be relied on; however,
contracting officers shall ensure that
the appropriate level of information
other than cost or pricing data is submitted by subcontractors to support

1815.404–2

any required proposal analysis, including a technical analysis and a cost realism analysis. The CCC also will provide for follow-up audit activity to ensure that any excess profits are found
and refunded to NASA.
(b) NASA has waived the requirement
for the submission of cost or pricing
data when contracting for Small Business Innovation Research (SBIR) program Phase II contracts. However, contracting officers shall ensure that the
appropriate level of information other
than cost or pricing data is submitted
to determine price reasonableness and
cost realism.
[64 FR 10573, Mar. 5, 1999]

1815.403–3 Requiring
information
other than cost or pricing data.
(b) As indicated in 1815.403–1(b)(1), the
adequate price competition exception
applies to all competitive acquisitions.
For other than firm-fixed price competitions, only the minimum information other than cost or pricing data
necessary to ensure price reasonableness and assess cost realism should be
requested. For firm-fixed price competitions, the contracting officer shall
not request any cost information, except as required by FAR 22.1103, unless
proposed prices appear unreasonable or
unrealistically low given the offeror’s
proposed approach and there are concerns that the contractor may default.
[64 FR 69416, Dec. 13, 1999]

1815.403–4 Requiring cost or pricing
data. (NASA supplements paragraph (b))
(b)(2) If a certificate of current cost
or pricing data is made applicable as of
a date other than the date of price
agreement, the agreed date should generally be within two weeks of the date
of that agreement.
1815.404

Proposal analysis.

1815.404–2 Information to support proposal analysis. (NASA supplements
paragraph (a))
(a)(1)(A) A field pricing report consists of a technical report and an audit
report by the cognizant contract audit
activity. Contracting officers should
request a technical report from the

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1815.404–4

48 CFR Ch. 18 (10–1–02 Edition)

ACO only if NASA resources are not
available.
(B) When the required participation
of the ACO or auditor involves merely
a verification of information, contracting officers should obtain this
verification from the cognizant office
by telephone rather than formal request of field pricing support.
(C) When the cost proposal is for a
product of a follow-on nature, contracting officers shall ensure that the
following items, at a minimum are
considered: actuals incurred under the
previous contract, learning experience,
technical and production analysis, and
subcontract proposal analysis. This information may be obtained through
NASA resources or the cognizant
DCMA ACO or DCAA.
(D) Requests for field pricing assistance may be made on NASA Form 1434,
Letter of Request for Pricing-AuditTechnical Evaluation Services.

(2) Use the structured approach
method in developing profit or fee objectives for negotiated subcontracts.
(ii) The use of the NASA structured
approach for profit or fee is not required for:
(a) Architect-engineer contracts;
(b) Management contracts for operation and/or maintenance of Government facilities;
(c) Construction contracts;
(d) Contracts primarily requiring delivery of materials supplied by subcontractors;
(e) Termination settlements; and
(f) Contracts having unusual pricing
situations when the procurement officer determines in writing that the
structured approach is unsuitable.
(c)(2) Contracting officers shall document the profit or fee analysis in the
contract file.

[63 FR 9954, Feb. 27, 1998, as amended at 67
FR 53547, Oct. 23, 2001]

1815.404–470 NASA Form 634.
NASA Form (NF) 634 shall be used in
performing the analysis necessary to
develop profit or fee objectives.

1815.404–4 Profit. (NASA supplements
paragraphs (b) and (c))
(b)(1)(i)(a) The NASA structured approach for determining profit or fee objectives, described in 1815.404–471 shall
be used to determine profit or fee objectives in the negotiation of contracts
greater than or equal to $100,000 that
use cost analysis and are:
(1) Awarded on the basis of other
than full and open competition (see
FAR 6.3);
(2) Awarded under NASA Research
Announcements (NRAs) and Announcements of Opportunity (AO’s); or
(3) Awarded under the Small Business
Innovative Research (SBIR) or the
Small Business Technology Transfer
Research (STTR) programs.
(b) The rate calculated for the basic
contract may only be used on actions
under a negotiated contract when the
conditions affecting profit or fee do not
change.
(c) Although specific agreement on
the applied weights or values for individual profit or fee factors shall not be
attempted, the contracting officer may
encourage the contractor to—
(1) Present the details of its proposed
profit amounts in the structured approach format or similar structured approach; and

[64 FR 51472, Sept. 23, 1999]

[64 FR 51473, Sept. 23, 1999]

1815.404–471 NASA
structured
approach for profit or fee objective.
1815.404–471–1 General.
(a) The structured approach for determining profit or fee objectives (NF
634) focuses on three profit factors:
(1) Performance risk;
(2) Contract type risk including
working capital adjustment; and
(3) Other Considerations which may
be considered by the contracting officer to account for special circumstances that are not adequately addressed in the performance risk and
contract type risk factors.
(b) The contracting officer assigns
values to each profit or fee factor; the
value multiplied by the base results in
the profit/fee objective for that factor.
Each factor has a normal value and a
designated range of values. The normal
value is representative of average conditions on the prospective contract
when compared to all goods and services acquired by NASA. The designated
range provides values based on above
normal or below normal conditions.
Values outside the designated range

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National Aeronautics and Space Administration
must not be used. In the negotiation
documentation, the contracting officer
need not explain assignment of the normal value, but must address conditions
that justify assignment of other than
the normal value.
[64 FR 51473, Sept. 23, 1999, as amended at 65
FR 12485, Mar. 9, 2000]

1815.404–471–2 Performance risk.
(a) Risk factors. Performance risk addresses the contractor’s degree of risk
in fulfilling the contract requirements.
It consists of three risk factors:
(1) Technical—the technical uncertainties of performance;
(2) Management—the degree of management effort necessary to ensure
that contract requirements are met;
and
(3) Cost control—the contractor’s efforts to reduce and control costs.
(b) Risk factor weighting, values and
calculations. A weighting and value is
assigned to each of the risk factors to
determine a profit/fee objective.
(c) Values. The normal value is 6 percent and the designated range is 4 percent to 8 percent.
(d) Evaluation criteria for technical risk
factor. (1) In determining the appropriate value for the technical risk factor, the contracting officer shall review
the contract requirements and focus on
the critical performance elements in
the statement of work or specifications. Contracting officers shall consider the—
(i) Technology being applied or developed by the contractor;
(ii) Technical complexity;
(iii) Program maturity;
(iv) Performance specifications and
tolerances;
(v) Delivery schedule; and
(vi) Extent of a warranty or guarantee.
(2) Above normal conditions indicating
substantial technical risk. (i) The contracting officer may assign a higher
than normal value in those cases where
there is a substantial technical risk,
such as when—
(A) The contractor is either developing or applying advanced technologies;
(B) Items are being manufactured
using specifications with stringent tolerance limits;

1815.404–471–2

(C) The efforts require highly skilled
personnel or require the use of state-ofthe-art machinery;
(D) The services or analytical efforts
are extremely important to the government and must be performed to exacting standards;
(E) The contractor’s independent development and investment has reduced
the Government’s risk or cost;
(F) The contractor has accepted an
accelerated delivery schedule to meet
the Government’s requirements; or
(G) The contractor has assumed additional risk through warranty provisions.
(ii) The contracting officer may assign a value significantly above normal. A maximum value may be assigned when the effort involves—
(A) Extremely complex, vital efforts
to overcome difficult technical obstacles that require personnel with exceptional abilities, experience, and professional credentials;
(B) Development or initial production of a new item, particularly if performance or quality specifications are
tight; or
(C) A high degree of development or
production concurrency.
(3) Below normal conditions indicating
lower than normal technical risk. (i) The
contracting officer may assign a lower
than normal value in those cases where
the technical risk is low, such as when
the—
(A) Acquisition is for off-the-shelf
items;
(B) Requirements are relatively simple;
(C) Technology is not complex;
(D) Efforts do not require highly
skilled personnel;
(E) Efforts are routine; or
(F) Acquisition is a follow-on effort
or a repetitive type acquisition.
(ii) The contracting officer may assign a value significantly below normal. A minimum value may be justified when the effort involves—
(A) Routine services;
(B) Production of simple items;
(C) Rote entry or routine integration
of Government-furnished information;
or
(D) Simple operations with Government-furnished property.

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1815.404–471–2

48 CFR Ch. 18 (10–1–02 Edition)

(e) Evaluation criteria for management
risk factor. (1) In determining the appropriate value for the management
risk factor, the contracting officer
shall review the contract requirements
and focus on the critical performance
elements in the statement of work or
specifications.
Contracting
officers
shall—
(i) Assess the contractor’s management and internal control systems
using contracting office information
and reviews made by contract administration offices;
(ii) Assess the management involvement expected on the prospective contract action; and
(iii) Consider the degree of cost mix
as an indication of the types of resources applied and value added by the
contractor.
(2) Above normal conditions indicating
substantial management risk. (i) The contracting officer may assign a higher
than normal value when the management effort is intense, such as when—
(A) The contractor’s value added is
both considerable and reasonably difficult; or
(B) The effort involves a high degree
of integration and coordination.
(ii) The contracting officer may justify a maximum value when the effort—
(A) Requires large-scale integration
of the most complex nature;
(B) Involves major international activities with significant management
coordination; or
(C) Has critically important milestones.
(3) Below normal conditions indicating
lower than normal management risk. (i)
The contracting officer may assign a
lower than normal value when the
management effort is minimal, such as
when—
(A) The program is mature and many
end item deliveries have been made;
(B) The contractor adds minimum
value to an item;
(C) The efforts are routine and require minimal supervision;
(D) The contractor fails to provide an
adequate analysis of subcontractor
costs; or
(E) The contractor does not cooperate in the evaluation and negotiation
of the proposal.

(ii) The contracting officer may assign a value significantly below normal. A minimum value may be assigned when—
(A) Reviews performed by the field
administration offices disclose unsatisfactory management and internal control systems (e.g., quality assurance,
property control, safety, security); or
(B) The effort requires an unusually
low degree of management involvement.
(f) Evaluation criteria for cost control
risk factor. (1) In determining the appropriate value for the cost control
risk factor, the contracting officer
shall—
(i) Evaluate the expected reliability
of the contractor’s cost estimates
(including the contractor’s cost estimating system);
(ii) Evaluate the contractor’s cost reduction initiatives (e.g., competition
advocacy programs);
(iii) Assess the adequacy of the contractor’s management approach to controlling cost and schedule; and
(iv) Evaluate any other factors that
affect the contractor’s ability to meet
the cost targets (e.g., foreign currency
exchange rates and inflation rates).
(2) Above normal conditions indicating
substantial cost control risk. (i) The contracting officer may assign a value
higher than normal value if the contractor can demonstrate a highly effective cost control program, such as
when—
(A) The contractor has an aggressive
cost reduction program that has demonstrable benefits;
(B) The contractor uses a high degree
of subcontract competition; or
(C) The contractor has a proven
record of cost tracking and control.
(3) Below normal conditions indicating
lower than normal cost control risk. (i)
The contracting officer may assign a
lower than normal value in those cases
where the contractor demonstrates
minimal concern for cost control, such
as when—
(A) The contractor’s cost estimating
system is marginal;
(B) The contractor has made minimal
effort to initiate cost reduction programs;
(C) The contractor’s cost proposal is
inadequate; or

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National Aeronautics and Space Administration
(D) The contractor has a record of
cost overruns or the indication of unreliable cost estimates and lack of cost
control.
[64 FR 51473, Sept. 23, 1999]

1815.404–471–3 Contract type risk and
working capital adjustment.
(a) Risk factors. The contract type
risk factor focuses on the degree of
cost risk accepted by the contractor
under varying contract types. The
working capital adjustment is an adjustment added to the profit objective
for contract type risk. It applies to
fixed-price type contracts that provide
for progress payments. Though it uses
a formula approach, it is not intended
to be an exact calculation of the cost of

1815.404–471–3

working capital. Its purpose is to give
general recognition to the contractor’s
cost of working capital under varying
contract circumstances, financing policies, and the economic environment.
This adjustment is limited to a maximum of 2 percent.
(b) Risk factor values and calculations.
A risk value is assigned to calculate
the profit or fee objective for contract
type. A contract length factor is assigned and applied to costs financed
when a working capital adjustment is
appropriate. This calculation is only
performed when the prospective contract is a fixed-price contract containing provisions for progress payments.
(c) Values: Normal and designated
ranges.

Contract Type

Note

Firm-fixed-price, no financing ......................................................................................
Firm-fixed-price with performance-based payments ...................................................
Firm-fixed-price with progress payments ....................................................................
Fixed-price-incentive, no financing ..............................................................................
Fixed-price-incentive, with performance-based payments ..........................................
Fixed-price, redeterminable .........................................................................................
Fixed-price-incentive, with progress payments ...........................................................
Cost-plus-incentive-fee ................................................................................................
Cost-plus-award fee ....................................................................................................
Cost-plus-fixed fee ......................................................................................................
Time-and-materials ......................................................................................................
Labor-hour ...................................................................................................................
Firm-fixed-price, level-of-effort, term ...........................................................................

(1) No financing, means that the contract either does not provide progress
or performance based payments, or provides them only on a limited basis. Do
not compute a working capital adjustment.
(2) When progress payments are
present, compute a working capital adjustment.
(3) For purposes of assigning profit
values, treat a fixed-price redeterminable contract as if it were a fixedprice-incentive contract with below
normal provisions.
(4) Cost-plus contracts shall not receive the working capital adjustment.
(5) These types of contracts are considered cost-plus-fixed-fee contracts for
the purposes of assigning profit values.
Do not compute the working capital
adjustment. However, higher than normal values may be assigned within the

Normal value
(Percent)

(1)
(6)
(2)
(1)
(6)
(3)
(2)
(4)
(4)
(4)
(5)
(5)
(5)

Designated
range
(Percent)

5
4
3
3
2

4 to 6
2.5 to 5.5
2 to 4
2 to 4
.5 to 3.5

1
1
.75
.5
.5
.5
.5

0 to 2
0 to 2
.5 to 1.5
0 to 1
0 to 1
0 to 1
0 to 1

designated range to the extent that
portions of cost are fixed.
(6) When performance-based payments are used, do not compute a
working capital adjustment.
(d) Evaluation criteria. (1) General. The
contracting officer shall consider elements that affect contract type risk
such as—
(i) Length of contract;
(ii) Adequacy of cost projection data;
(iii) Economic environment;
(iv) Nature and extent of subcontracted activity;
(v) Protection provided to the contractor under contract provisions (e.g.,
economic price adjustment clauses);
(vi) The ceilings and share lines contained in the incentive provisions; and
(vii) The rate, frequency, and risk to
the contractor of performance-based
payments, if provided.

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1815.404–471–3

48 CFR Ch. 18 (10–1–02 Edition)

(2) Mandatory. The contracting officer shall assess the extent to which
costs have been incurred prior to
definitization of the contract. When
costs have been incurred prior to
definitization, generally regard the
contract type risk to be in the low end
of the designated range. If a substantial portion of the costs have been incurred prior to definitization, the contracting officer may assign a value as
low as 0 percent regardless of contract
type.
(3) Above normal conditions. The contracting officer may assign a higher
than normal value when there is substantial contract type risk. Conditions
indicating higher than normal contract
type risk are—
(i) Efforts where there is minimal
cost history;
(ii) Long-term contracts without provisions protecting the contractor, particularly when there is considerable
economic uncertainty;
(iii) Incentive provisions that place a
high degree of risk on the contractor;
(iv) Performance-based payments totaling less than the maximum allowable amount(s) specified at FAR
32.1004(b)(2); or
(v) An aggressive performance-based
payment schedule that increases risk.
(4) Below normal conditions. The contracting officer may assign a lower
than normal value when the contract
type risk is low. Conditions indicating
lower than normal contract type risk
are:
(i) Very mature product line with extensive cost history;
(ii) Relatively short-term contracts;
(iii) Contractual provisions that substantially reduce the contractor’s risk,
e.g. economic price adjustment provisions; and
(iv) Incentive provisions that place a
low amount of risk on the contractor.
(v) A performance-based payment
schedule that is routine with minimal
risk.
(e) Costs financed. (1) Costs financed
equal the total costs multiplied by the
percent of costs financed by the contractor.
(2) Total costs may be reduced as appropriate when—
(i) The contractor has little cash investment (e.g., subcontractor progress

payments are liquidated late in the period of performance);
(ii) Some costs are covered by special
funding arrangements, such as advance
payments;
(3) The portion financed by the contractor is generally the portion not
covered by progress payments. (i.e.—
for progress payments: 100 percent
minus the customary progress payments rate. For example, if a contractor receives progress payments at
75 percent, the portion financed by the
contractor is 25 percent. On contracts
that provide progress payments to
small business, use the customary
progress payment rate for large businesses.)
(f) Contract length factor. (1) This is
the period of time that the contractor
has a working capital investment in
the contract. It—
(i) Is based on the time necessary for
the contractor to complete the substantive portion of the work;
(ii) Is not necessarily the period of
time between contract award and final
delivery, as periods of minimal effort
should be excluded;
(iii) Should not include periods of
performance contained in option provisions when calculating the objective
for the base period; and
(iv) Should not, for multiyear contracts, include periods of performance
beyond that required to complete the
initial year’s requirements.
(2) The contracting officer—
(i) Should use the following to select
the contract length factor:
Period to perform substantive portion
(in months)
21
22
28
34
40

Contract length
factor

or less .....................................................
to 27 .......................................................
to 33 .......................................................
to 39 .......................................................
or more ...................................................

(ii) Should develop a weighted average contract length when the contract
has multiple deliveries; and
(iii) May use sampling techniques
provided they produce a representative
result.
(3) Example: A prospective contract
has a performance period of 40 months
with end items being delivered in the
34th, 36th, 38th and 40th months of the
contract. The average period is 37

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National Aeronautics and Space Administration
months and the contract length factor
is 1.15.
[64 FR 51474, Sept. 23, 1999]

1815.404–471–4 Other considerations.
(a) Other Considerations may be included by the contracting officer to account for special circumstances, such
as contractor efficiencies or unusual
acceptance of contractual or program
risks that are not adequately addressed
in the structured approach calculations
described in 1815.404–471–2 or 1815.404–
4713. The total adjustment resulting
from Other Considerations may be
positive or negative but in no case
should the total adjustment exceed +/
¥5 percent.
(b) The contracting officer shall analyze and verify information provided by
the contractor that demonstrates that
the special circumstances being recognized under this section—
(1) Provide substantial benefits to
the Government under the contract
and/or overall program;
(2) Have not been recognized in the
structured approach calculations; and
(3) Represent unusual and innovative
actions or acceptance of risk by the
contractor.
(c)
Examples
of
special
circumstances include, but are not limited to the following:
(1) Consistent demonstration by the
contractor of excellent past performance within the last three years, with a
special emphasis on excellence in safety, may merit an upward adjustment of
as much as 1 percent. Similarly, an assessment of poor past performance, especially in the area of safety, may
merit a downward adjustment of as
much -1 percent. This consideration is
especially important when negotiating
modifications or changes to an ongoing
contract.
(2) Extraordinary steps to achieve
the Government’s socioeconomic goals,
environmental goals, and public policy
goals established by law or regulation
that are sufficiently unique or unusual
may merit an upward adjustment of as
much as .5 percent. Similarly, for nonparticipation in or violation of Federal
programs, the contracting officer may
adjust the objective by as much as -.5
percent. However, this consideration
does not apply to the utilization of

1815.404–471–5

small disadvantaged businesses. Incentives for use of these firms may only be
structured according to FAR 19.1203
and 19.1204(c).
(3) Consideration of up to 1 percent
should be given when contract performance requires the expenditure of significant corporate capital resources.
(4) Unusual requests for use of government facilities and property may
merit a downward adjustment of as
much as—1 percent.
(5) Cost efficiencies arising from innovative product design, process improvements, or integration of a life
cycle cost approach for the design and
development of systems that minimize
maintenance and operations costs, that
have not been recognized in Performance Risk or Contract Type Risk, may
merit an upward adjustment. This factor is intended to recognize and reward
improvements resulting from better
ideas and management that will benefit the Government in the contract
and/or program.
(d) Other considerations need not be
limited to situations that increase
profit/fee levels. A negative consideration may be appropriate when there is
a significant expectation of near-term
spin-off benefits as a direct result of
the contract.
[64 FR 51475, Sept. 23, 1999]

1815.404–471–5
of money.

Facilities capital cost

(a) When facilities capital cost of
money is included as an item of cost in
the contractor’s proposal, it shall not
be included in the cost base for calculating profit/fee. In addition, a reduction in the profit/fee objective shall be
made in the amount equal to the facilities capital cost of money allowed in
accordance with FAR 31.205–10(a)(2) or
1 percent of the cost base, whichever is
less.
(b) CAS 417, cost of money as an element of the cost of capital assets under
construction, should not appear in contract proposals. These costs are included in the initial value of a facility
for purposes of calculating depreciation under CAS 414.
[64 FR 51476, Sept. 23, 1999]

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1815.404–471–6

48 CFR Ch. 18 (10–1–02 Edition)

1815.404–471–6 Modification to structured profit/fee approach for nonprofit organizations.

1815.406–170 Content
of
prenegotiation
position
randum.

(a) The structured approach was designed for determining profit or fee objectives for commercial organizations.
However, the structured approach must
be used as a basis for arriving at profit/
fee objectives for nonprofit organizations (FAR subpart 31.7), excluding
educational institutions (FAR subpart
31.3), in accordance with paragraph (b)
of this section. It is NASA policy not
to pay profit or fee on contracts with
educational institutions.
(b) For contracts with nonprofit organizations under which profit or fee is
involved, an adjustment of up to 3 percent of the costs in Block 13 of NASA
Form 634 must be subtracted from the
total profit/fee objective. In developing
this adjustment, it is necessary to consider the following factors:
(1) Tax position benefits;
(2) Granting of financing through letters of credit;
(3) Facility requirements of the nonprofit organization; and
(4) Other pertinent factors that may
work to either the advantage or disadvantage of the contractor in its position as a nonprofit organization.

The prenegotiation position memorandum (PPM) should fully explain the
contractor and Government positions.
Since the PPM will ultimately become
the basis for negotiation, it should be
structured to track to the price negotiation memorandum (see FAR 15.406–3
and 1815.406–3). In addition to the information described in FAR 15.406–1 and,
as appropriate, 15.406–3(a), the PPM
should address the following subjects,
as applicable, in the order presented:
(a) Introduction. Include a description of the acquisition and a history of
prior acquisitions for the same or similar items. Address the extent of competition and its results. Identify the
contractor and place of performance (if
not evident from the description of the
acquisition). Document compliance
with law, regulations and policy, including JOFOC, synopsis, EEO compliance, and current status of contractor
systems (see FAR 15.406–3(a)(4)). In addition, the negotiation schedule should
be addressed and the Government negotiation team members identified by
name and position.
(b) Type of contract contemplated.
Explain the type of contract contemplated and the reasons for its suitability.
(c) Special features and requirements. In this area, discuss any special
features (and related cost impact) of
the acquisition, including such items
as—
(1) Letter contract or precontract
costs authorized and incurred;
(2) Results of preaward survey;
(3) Contract option requirements;
(4) Government property to be furnished;
(5) Contractor/Government investment in facilities and equipment (and
any modernization to be provided by
the contractor/Government);
(6) Any deviations, special clauses, or
unusual conditions anticipated, for example, unusual financing, warranties,
EPA clauses and when approvals were
obtained, if required; and
(7) Any risk management issues, e.g.,
mission success, safety, occupational
health, information technology, export

[65 FR 45306, July 21, 2000]

1815.404–472 Payment of profit or fee
under letter contracts.
NASA’s policy is to pay profit or fee
only on definitized contracts.
[65 FR 12485, Mar. 9, 2000]

1815.406

Documentation.

1815.406–1 Prenegotiation objectives.
(NASA supplements paragraph (b))
(b)(i) Before conducting negotiations
requiring installation or Headquarters
review, contracting officers or their
representatives
shall
prepare
a
prenegotiation position memorandum
setting forth the technical, business,
contractual, pricing, and other aspects
to be negotiated.
(ii) A prenegotiation position memorandum is not required for contracts
awarded under the competitive negotiated procedures of FAR 15.3 and
1815.3.

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the
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National Aeronautics and Space Administration
control, security, and environmental
risks.
(d) Cost analysis. For the basic requirement, and any option, include—
(1) A parallel tabulation, by element
of cost and profit/fee, of the contractor’s proposal and the Government’s
negotiation objective. The negotiation
objective represents the fair and reasonable price the Government is willing to pay for the supplies/services. For
each element of cost, compare the contractor’s proposal and the Government
position, explain the differences and
how the Government position was developed, including the estimating assumptions and projection techniques
employed, and how the positions differ
in approach. Include a discussion of excessive wages found (if applicable) and
their planned resolution. Explain how
historical costs, including costs incurred under a letter contract (if applicable), were used in developing the negotiation objective.
(2) Significant differences between
the field pricing report (including any
audit reports) and the negotiation objectives and/or contractor’s proposal
shall be highlighted and explained. For
each proposed subcontract meeting the
requirement of FAR 15.404–3(c), there
shall be a discussion of the price and,
when appropriate, cost analyses performed by the contracting officer, including the negotiation objective for
each such subcontract. The discussion
of each major subcontract shall include
the type of subcontract, the degree of
competition achieved by the prime
contractor, the price and, when appropriate, cost analyses performed on the
subcontractor’s proposal by the prime
contractor, any unusual or special pricing or finance arrangements, and the
current status of subcontract negotiations.
(3) The rationale for the Government’s profit/fee objectives and, if appropriate, a completed copy of the
NASA Form 634, Structured Approach—Profit/Fee Objective, and DD
Form 1861, Contract Facilities Capital
Cost of Money, should be included. For
incentive and award fee contracts, describe the planned arrangement in
terms of share lines, ceilings, and cost
risk.

1815.406–3

(e) Negotiation approval sought. The
PPM represents the Government’s realistic assessment of the fair and reasonable price for the supplies and services
to be acquired. If negotiations subsequently demonstrate that a higher dollar amount (or significant term or condition) is reasonable, the contracting
officer shall document the rationale for
such a change and request approval to
amend the PPM from the original approval authority.
[63 FR 9954, Feb. 27, 1998, as amended at 65
FR 37059, June 13, 2000]

1815.406–171 Installation reviews.
Each contracting activity shall establish procedures to review all
prenegotiation position memoranda.
The scope of coverage, exact procedures to be followed, levels of management review, and contract file documentation requirements should be directly related to the dollar value and
complexity of the acquisition. The primary purpose of these reviews is to ensure that the negotiator, or negotiation team, is thoroughly prepared to
enter into negotiations with a wellconceived, realistic, and fair plan.
1815.406–172 Headquarters reviews.
(a) When a prenegotiation position
has been selected for Headquarters review and approval, the contracting activity shall submit to the Office of Procurement (Code HS) one copy each of
the prenegotiation position memorandum, the contractor’s proposal, the
Government technical evaluations, and
all pricing reports (including any audit
reports).
(b) The required information described in paragraph (a) of this section
shall be furnished to Headquarters as
soon as practicable and sufficiently in
advance of the planned commencement
of negotiations to allow a reasonable
period of time for Headquarters review.
Electronic submittal is acceptable.
1815.406–3 Documenting the negotiation. (NASA supplements paragraph
(a))
(a)(i) The price negotiation memorandum (PNM) serves as a detailed
summary of: the technical, business,
contractual, pricing (including price
reasonableness), and other elements of

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1815.407

48 CFR Ch. 18 (10–1–02 Edition)

the contract negotiated; and the methodology and rationale used in arriving
at the final negotiated agreement.
(ii) A PNM is not required for a contract awarded under competitive negotiated procedures. However, the information required by FAR 15.406–3 shall
be reflected in the evaluation and selection documentation to the extent
applicable.
(iii) When the PNM is a ‘‘standalone’’ document, it shall contain the
information required by the FAR and
NFS for both PPMs and PNMs. However, when a PPM has been prepared
under 1815.406–1, the subsequent PNM
need only provide any information required by FAR 15.406–3 that was not
provided in the PPM, as well as any
changes in the status of factors affecting cost elements (e.g., use of different
rates, hours, or subcontractors; wage
rate determinations; or the current
status of the contractor’s systems).

Subpart
1815.5—Preaward,
Award, and Postaward Notifications, Protests, and Mistakes

1815.407

1815.506 Postaward
offerors.

Special cost or pricing areas.

1815.407–2 Make-or-buy
programs.
(NASA supplements paragraph (e))
(e)(1) Make-or-buy programs should
not include items or work efforts estimated to cost less than $500,000.
1815.408 Solicitation
contract clauses.

provisions

1815.408–70 NASA solicitation
sions and contract clauses.

and

provi-

(a) The contracting officer shall insert the provision at 1852.215–78, Makeor-Buy Program Requirements, in solicitations requiring make-or-buy programs as provided in FAR 15.407–2(c).
This provision shall be used in conjunction with the clause at FAR 52.215–9,
Changes or Additions to Make-or-Buy
Program. The contracting officer may
add additional paragraphs identifying
any other information required in
order to evaluate the program.
(b) The contracting officer shall insert the clause at 1852.215–79, Price Adjustment for ‘‘Make-or-Buy’’ Changes,
in contracts that include FAR 52.215–9
with its Alternate I or II. Insert in the
appropriate columns the items that
will be subject to a reduction in the
contract value.

1815.504

Award to successful offeror.

The reference to notice of award in
FAR 15.504 on negotiated acquisitions
is a generic one. It relates only to the
formal establishment of a contractual
document obligating both the Government and the offeror. The notice is effected by the transmittal of a fully approved and executed definitive contract document, such as the award portion of SF 33, SF 26, SF 1449, or SF 1447,
or a letter contract when a definitized
contract instrument is not available
but the urgency of the requirement necessitates immediate performance. In
this latter instance, the procedures in
1816.603 for approval and issuance of
letter contracts shall be followed.
debriefing

1815.506–70 Debriefing of offerors—
Major System acquisitions.
(a) When an acquisition is conducted
in accordance with the Major System
acquisition procedures in part 1834 and
multiple offerors are selected, the debriefing will be limited in such a manner that it does not prematurely disclose innovative concepts, designs, and
approaches of the successful offerors
that would result in a transfusion of
ideas.
(b) When Phase B awards are made
for alternative system design concepts,
the source selection statements shall
not be released to competing offerors
or the general public until the release
of the source selection statement for
Phase C/D without the approval of the
Assistant Administrator for Procurement (Code HS).

Subpart 1815.6—Unsolicited
Proposals
1815.602 Policy. (NASA paragraphs (1)
and (2))
(1) An unsolicited proposal may result in the award of a contract, grant,

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National Aeronautics and Space Administration

1815.7001

cooperative agreement, or other agreement. If a grant or cooperative agreement is used, the NASA Grant and Cooperative Agreement Handbook (NPG
5800.1) applies.
(2) Renewal proposals (i.e., those for
the extension or augmentation of current contracts) are subject to the same
FAR and NFS regulations, including
the requirements of the Competition in
Contracting Act, as are proposals for
new contracts.

records shall include, at a minimum,
the number of unsolicited proposals received, funded, and rejected during the
fiscal year; the identity of the offerors;
and the office to which each was referred. The numbers shall be broken
out by source (large business, small
business, university, or nonprofit institution).

1815.604 Agency points of contact.
(NASA supplements paragraph (a))
(a) Information titled ‘‘Guidance for
the Preparation and Submission of Unsolicited Proposals’’ is available on the
Internet at http://ec.msfc.nasa.gov/hq/
library/unSol-Prop.html . A deviation
is required for use of any modified or
summarized version of the Internet information or for alternate means of
general dissemination of unsolicited
proposal information.

An unsolicited proposal for a new effort or a renewal, identified by an evaluating office as being within the scope
of an open NRA, shall be evaluated as
a response to that NRA (see 1835.016–
71), provided that the evaluating office
can either:
(a) State that the proposal is not at
a competitive disadvantage, or
(b) Give the offeror an opportunity to
amend the unsolicited proposal to ensure compliance with the applicable
NRA proposal preparation instructions.
If these conditions cannot be met, the
proposal must be evaluated separately.

[63 FR 9954, Feb. 27, 1998, as amended at 63
FR 44409, Aug. 19, 1998; 66 FR 53546, Oct. 23,
2001]

1815.606 Agency procedures. (NASA
supplements paragraphs (a) and
(b))
(a) NASA will not accept for formal
evaluation unsolicited proposals initially submitted to another agency or
to the Jet Propulsion Laboratory
(JPL) without the offeror’s express
consent.
(b)(i) NASA Headquarters and each
NASA field installation shall designate
a point of contact for receiving and coordinating the handling and evaluation
of unsolicited proposals.
(ii) Each installation shall establish
procedures for handling proposals initially received by other offices within
the installation. Misdirected proposals
shall be forwarded by the point of contact to the proper installation. Points
of contact are also responsible for providing guidance to potential offerors
regarding the appropriate NASA officials to contact for general mission-related inquiries or other preproposal
discussions.
(iii) Points of contact shall keep
records of unsolicited proposals received and shall provide prompt status
information
to
requesters.
These

1815.606–70 Relationship of
ited proposals to NRAs.

[63 FR 9954, Feb. 27, 1998, as amended at 64
FR 48561, Sept. 7, 1999]

1815.609

Limited use of data.

1815.609–70

Limited use of proposals.

Unsolicited proposals shall be evaluated outside the Government only to
the extent authorized by, and in accordance with, the procedures prescribed in, 1815.207–70.
1815.670

Foreign proposals.

Unsolicited proposals from foreign
sources are subject to NPD 1360.2, Initiation and Development of International Cooperation in Space and Aeronautics Programs.
[64 FR 36606, July 7, 1999]

Subpart 1815.70—Ombudsman
1815.7001

NASA Ombudsman Program.

NASA’s implementation of an ombudsman program is in NPG 5101.33,
Procurement Advocacy Programs.
[63 FR 9954, Feb. 27, 1998, as amended at 65
FR 58931, Oct. 3, 2000]

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1815.7002

48 CFR Ch. 18 (10–1–02 Edition)

1815.7002 Synopses of solicitations
and contracts.
In all synopses announcing competitive acquisitions, the contracting officer shall indicate that the clause at
1852.215–84, Ombudsman, is applicable.
This may be accomplished by referencing the clause number and identifying the installation Ombudsman.
1815.7003 Contract clause.
The contracting officer shall insert a
clause substantially the same as the
one at 1852.215–84, Ombudsman, in all
solicitations (including draft solicitations) and contracts. Use the clause
with its Alternate I when a task or delivery order contract is contemplated.
[65 FR 38777, June 22, 2000]

1816.405–275 Award fee evaluation scoring.
1816.405–276 Award fee payments and limitations.
1816.406 Contract clauses.
1816.406–70 NASA contract clauses.

Subpart 1816.5—Indefinite-Delivery
Contracts
1816.504 Indefinite quantity contracts.
1816.505 Ordering.
1816.505–70 Task ordering.
1816.506–70 NASA contract clause.

Subpart 1816.6—Time-and-Materials,
Labor-House, and Letter Contracts
1816.603 Letter contracts.
1816.603–2 Application.
1816.603–370 Approvals.
AUTHORITY: 42 U.S.C. 2473(c)(1).
SOURCE: 62 FR 3478, Jan. 23, 1997, unless
otherwise noted.

PART 1816—TYPES OF CONTRACTS
Subpart 1816.1—Selecting
Contract Types

Subpart 1816.1—Selecting Contract Types
Sec.
1816.104 Factors in selecting contract types.
1816.104–70 Contract type for performancebased contracting (PBC).

1816.104 Factors in selecting contract
types.

Subpart 1816.2—Fixed-Price Contracts
1816.202 Firm-fixed-price contracts.
1816.202–70 NASA contract clause.
1816.203 Fixed-price contracts with
nomic price adjustment.
1816.203–4 Contract clauses.

SOURCE: 63 FR 12997, Mar. 17, 1998, unless
otherwise noted.

eco-

Subpart 1816.3—Cost-Reimbursement
Contracts
1816.303–70 Cost-sharing contracts.
1816.306 Cost-plus-fixed-fee contracts.
1816.307 Contract clauses.
1816.307–70 NASA contract clauses.

Subpart 1816.4—Incentive Contracts
1816.402 Application of predetermined, formula-type incentives. (NASA paragraphs
1,2 and 3).
1816.402–2 Performance incentives.
1816.402–270 NASA technical performance
incentives.
1816.404 Fixed–price contracts with award
fees.
1816.405 Cost-reimbursement incentive contracts.
1816.405–2 Cost-plus-award-fee (CPAF) contracts.
1816.405–270 CPAF contracts.
1816.405–271 Base fee.
1816.405–272 Award fee evaluation periods.
1816.405–273 Award fee evaluations.
1816.405–274 Award fee evaluation factors.

1816.104–70 Contract type for performance-based contracting (PBC).
(a) PBC is defined in FAR 2.101 and
discussed in FAR 37.6. Although FAR
part 37 primarily addresses services
contracts, PBC is not limited to these
contracts. PBC is the preferred way of
contracting for all supplies and services at NASA. Generally, when contract performance risk under a PBC
specification can be fairly shifted to
the contractor to allow for the operation of objective incentives, a contract type with objectively measurable
incentives (e.g., FFP, FPIF, or CPIF) is
appropriate. However, when contractor
performance (e.g., cost control, schedule, or quality/technical) is best evaluated subjectively using quantitative
measures, a CPAF contract may be
used.
(b) A PBC is a completion form of
contract (something is accomplished).
Term/level-of-effort,
time-and-materials and labor hour contracts are not
PBC.
[63 FR 12997, Mar. 17, 1998, as amended at 67
FR 30603, May 7, 2002]

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National Aeronautics and Space Administration

Subpart 1816.2—Fixed-Price
Contracts
1816.202

Firm-fixed-price contracts.

1816.202–70 NASA contract clause.
The contracting officer shall insert
the clause at 1852.216–78, Firm-FixedPrice, in firm-fixed-price solicitations
and contracts. Insert the appropriate
amount in the resulting contract.
1816.203 Fixed-price contracts
economic price adjustment.

with

1816.203–4 Contract clauses. (NASA
supplements paragraphs (a) and
(d)).
(a) In addition to the approval requirements in the prescriptions at FAR
52.216–2 through 52.216–4, the contracting officer shall coordinate with
the installation’s Deputy Chief Financial Officer (Finance) before exceeding
the ten-percent limit in paragraph
(c)(1) of the clauses at FAR 52.216–2 and
52.216–3 and paragraph (c)(4) of the
clause at 52.216–4.
(d)(2) Contracting officers shall contact the Office of Procurement, Code
HK, for specific guidance on preparing
clauses using cost indexes. Such
clauses require advance approval by
the Assistant Administrator for Procurement. Requests for approval shall
be submitted to the Headquarters Office of Procurement (Code HS).
[62 FR 3478, Jan. 23, 1997, as amended at 64
FR 5620, Feb. 4, 1999; 65 FR 82296, Dec. 28,
2000]

Subpart 1816.3—CostReimbursement Contracts
1816.303–70 Cost-sharing contracts.
(a) Cost-sharing with for-profit organizations. (1) Cost sharing by for-profit
organizations is mandatory in any contract for basic or applied research resulting from an unsolicited proposal,
and may be accepted in any other contract when offered by the proposing organization. The requirement for costsharing may be waived when the contracting officer determines in writing
that the contractor has no commercial,
production, education, or service activities that would benefit from the results of the research, and the con-

1816.307

tractor has no means of recovering its
shared costs on such projects.
(2) The contractor’s cost-sharing may
be any percentage of the project cost.
In determining the amount of costsharing, the contracting officer shall
consider the relative benefits to the
contractor and the Government. Factors that should be considered include—
(i) The potential for the contractor
to recover its contribution from nonFederal sources;
(ii) The extent to which the particular area of research requires special stimulus in the national interest;
and
(iii) The extent to which the research
effort or result is likely to enhance the
contractor’s capability, expertise, or
competitive advantage.
(b) Cost-sharing with not-for-profit organizations. (1) Costs to perform research stemming from an unsolicited
proposal by universities and other educational or not-for-profit institutions
are usually fully reimbursed. When the
contracting officer determines that
there is a potential for significant benefit to the institution cost-sharing will
be considered.
(2) The contracting officer will normally limit the institution’s share to
no more than 10 percent of the
project’s cost.
(c) Implementation. Cost-sharing shall
be stated as a minimum percentage of
the total allowable costs of the project.
The contractor’s contributed costs may
not be charged to the Government
under any other contract or grant, including allocation to other contracts
and grants as part of an independent
research and development program.
1816.306 Cost-plus-fixed-fee contracts.
(NASA supplements paragraph (d)).
(d) Completion and term forms.
(4) Term form contracts are incompatible with performance base contracting (PBC) and should not be used
with PBC requirements.
1816.307 Contract clauses. (NASA supplements paragraphs (a), (b), (d),
and (g)).
(a) In paragraph (h)(2)(ii)(B) of the
Allowable Cost and Payment clause at
FAR 52.216–7, the period of years may

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48 CFR Ch. 18 (10–1–02 Edition)

be increased to correspond with any
statutory period of limitation applicable to claims of third parties against
the contractor; provided, that a corresponding increase is made in the period for retention of records required in
paragraph (f) of the clause at FAR
52.215–2, Audit and Records—Negotiation.
(b) In solicitations and contracts containing the clause at FAR 52.216–8,
Fixed Fee, the Schedule shall include
appropriate terms, if any, for provisional billing against fee.
(d) In solicitations and contracts containing the clause at FAR 52.216–10, Incentive Fee, the Schedule shall include
appropriate terms, if any, for provisional billing against fee.
(g) In paragraph (g)(2)(ii) of the Allowable Cost and Payment—Facilities
clause at FAR 52.216–13, the period of
years may be increased to correspond
with any statutory period of limitation
applicable to claims of third parties
against the contractor; provided, that
a corresponding increase is made in the
period for retention of records required
in paragraph (f) of the clause at FAR
52.215–2, Audit and Records—Negotiation.
1816.307–70

NASA contract clauses.

(a) The contracting officer shall insert the clause at 1852.216–73, Estimated Cost and Cost Sharing, in each
contract in which costs are shared by
the contractor pursuant to 1816.303–70.
(b) The contracting officer shall insert the clause substantially as stated
at 1852.216–74, Estimated Cost and
Fixed Fee, in cost-plus-fixed-fee contracts.
(c) The contracting officer may insert the clause at 1852.216–75, Payment
of Fixed Fee, in cost-plus-fixed-fee contracts. Modifications to the clause are
authorized.
(d) The contracting officer may insert the clause at 1852.216–81, Estimated Cost, in cost-no-fee contracts
that are not cost sharing or facilities
contracts.
(e) The contracting officer may insert a clause substantially as stated at
1852.216–87, Submission of Vouchers for
Payment, in cost-reimbursement solicitations and contracts.

(f) When either FAR clause 52.216–7,
Allowable Cost and Payment, or FAR
clause 52.216–13, Allowable Cost and
Payment—Facilities, is included in the
contract, as prescribed at FAR 16.307
(a) and (g), the contracting officer
should include the clause at 1852.216–89,
Assignment and Release Forms.

Subpart 1816.4—Incentive
Contracts
1816.402 Application
of
predetermined,
formula-type
incentives.
(NASA paragraphs 1, 2 and 3).
When considering the use of a quality, performance, or schedule incentive, the following guidance applies.
(1) A positive incentive is generally
not appropriate unless—
(i) Performance above the target (or
minimum, if there are no negative incentives) level is of significant value to
the Government;
(ii) The value of the higher level of
performance is worth the additional
cost/fee;
(iii) The attainment of the higher
level of performance is clearly within
the control of the contractor; and
(iv) An upper limit is identified, beyond which no further incentive is
earned.
(2) A negative incentive is generally
not appropriate unless—
(i) A target level of performance can
be established, which the contractor
can reasonably be expected to reach
with a diligent effort, but a lower level
of performance is also minimally acceptable;
(ii) The value of the negative incentive is commensurate with the lower
level of performance and any additional administrative costs; and
(iii) Factors likely to prevent attainment of the target level of performance
are clearly within the control of the
contractor.
(3) When a negative incentive is used,
the contract must indicate a level
below which performance is not acceptable.
[63 FR 12997, Mar. 17, 1998]

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National Aeronautics and Space Administration
1816.402–2

Performance incentives.

1816.402–270 NASA technical performance incentives.
(a) Pursuant to the guidelines in
1816.402, NASA has determined that a
performance incentive shall be included in all contracts based on performance-oriented documents (see FAR
11.101(a)), except those awarded under
the commercial item procedures of
FAR part 12, where the primary deliverable(s) is (are) hardware with a total
value (including options) greater than
$25 million. Any exception to this requirement shall be approved in writing
by the Center Director. Performance
incentives may be included in hardware
contracts valued under $25 million acquired under procedures other than
FAR Part 12 at the discretion of the
procurement officer upon consideration
of the guidelines in 1816.402. Performance incentives, which are objective
and measure hardware performance
after delivery and acceptance, are separate from other incentives, such as cost
or delivery incentives.
(b) When a performance incentive is
used, it shall be structured to be both
positive and negative based on hardware performance after delivery and
acceptance, unless the contract type
requires complete contractor liability
for product performance (e.g., fixed
price). In this latter case, a negative
incentive is not required. In structuring the incentives, the contract
shall establish a standard level of performance based on the salient hardware performance requirement. This
standard performance level is normally
the contract’s minimum performance
requirement. No incentive amount is
earned at this standard performance
level. Discrete units of measurement
based on the same performance parameter shall be identified for performance
above and, when a negative incentive is
used, below the standard. Specific incentive amounts shall be associated
with each performance level from maximum
beneficial
performance
(maximum positive incentive) to, when
a negative incentive is included, minimal beneficial performance or total
failure (maximum negative incentive).
The relationship between any given incentive, either positive and negative,

1816.402–270

and its associated unit of measurement
should reflect the value to the Government of that level of hardware performance. The contractor should not be
rewarded for above-standard performance levels that are of no benefit to the
Government.
(c) The final calculation of the performance incentive shall be done when
hardware performance, as defined in
the contract, ceases or when the maximum positive incentive is reached.
When hardware performance ceases
below the standard established in the
contract and a negative incentive is included, the Government shall calculate
the amount due and the contractor
shall pay the Government that
amount. Once hardware performance
exceeds the standard, the contractor
may request payment of the incentive
amount associated with a given level of
performance, provided that such payments shall not be more frequent than
monthly. When hardware performance
ceases above the standard level of performance, or when the maximum positive incentive is reached, the Government shall calculate the final performance incentive earned and unpaid and
promptly remit it to the contractor.
(d) When the deliverable hardware
lends itself to multiple, meaningful
measures of performance, multiple performance incentives may be established. When the contract requires the
sequential delivery of several hardware
items (e.g. multiple spacecraft), separate performance incentive structures
may be established to parallel the sequential delivery and use of the
deliverables.
(e) In determining the value of the
maximum
performance
incentives
available, the contracting officer shall
follow the following rules.
(1) For a CPFF contract, the sum of
the maximum positive performance incentive and fixed fee shall not exceed
the limitations in FAR 15.404–4(c)(4)(i).
(2) For an award fee contract.
(i) The individual values of the maximum positive performance incentive
and the total potential award fee
(including any base fee) shall each be
at least one-third of the total potential
contract fee. The remaining one-third
of the total potential contract fee may
be divided between award fee and the

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1816.404

48 CFR Ch. 18 (10–1–02 Edition)

maximum performance incentive at
the discretion of the contracting officer.
(ii) The maximum negative performance incentive for research and development hardware (e.g., the first and
second units) shall be equal in amount
to the total earned award fee (including
any base fee). The maximum negative
performance incentives for production
hardware (e.g., the third and all subsequent units of any hardware items)
shall be equal in amount to the total
potential award fee (including any base
fee). Where one contract contains both
cases described above, any base fee
shall be allocated reasonably among
the items.
(3) For cost reimbursement contracts
other than award fee contracts, the
maximum negative performance incentives shall not exceed the total earned
fee under the contract.

mated cost and fee less than $2 million
per year. The procurement officer may
authorize use of award fee for lowervalued acquisitions, but should do so
only in exceptional situations, such as
contract requirements having direct
health or safety impacts, where the
judgmental assessment of the quality
of contractor performance is critical.
(b) Except as provided in paragraph
(c) of this section, an award fee incentive may be used in conjunction with
other contract types for aspects of performance that cannot be objectively
assessed. In such cases, the cost incentive is based on objective formulas inherent in the other contract types
(e.g., FPI, CPIF), and the award fee
provision
should
not
separately
incentivize cost performance.
(c) Award fee incentives shall not be
used with a cost-plus-fixed-fee (CPFF)
contract.

[62 FR 3478, Jan. 23, 1997, as amended at 62
FR 58687, Oct. 30, 1997; 63 FR 9965, Feb. 27,
1998; 63 FR 12997, Mar. 17, 1998; 63 FR 28285,
May 22, 1998]

[63 FR 12998, Mar. 17, 1998]

1816.404 Fixed-price contracts with
award fees.
Section 1816.405–2 applies to the use
of FPAF contracts as if they were
CPAF contracts. However, neither base
fee (see 1816.405–271) nor evaluation of
cost control (see 1816.405–274) apply to
FPAF contracts.
[62 FR 58687, Oct. 30, 1997]

1816.405 Cost-reimbursement
tive contracts.

incen-

[62 FR 3478, Jan. 23, 1997. Redesignated at 62
FR 36706, July 9, 1997]

1816.405–2 Cost-plus-award-fee (CPAF)
contracts.
[62 FR 3478, Jan. 23, 1997. Redesignated at 62
FR 36706, July 9, 1997]

1816.405–270 CPAF contracts.
(a) Use of an award fee incentive
shall be approved in writing by the procurement officer. The procurement officer’s approval shall include a discussion of the other types of contracts
considered and shall indicate why an
award fee incentive is the appropriate
choice. Award fee incentives should not
be used on contracts with a total esti-

1816.405–271

Base fee.

(a) A base fee shall not be used on
CPAF contracts for which the periodic
award
fee
evaluations
are
final
(1816.405–273(a)).
In
these
circumstances, contractor performance
during any award fee period is independent of and has no effect on subsequent performance periods or the final
results at contract completion. For
other contracts, such as those for hardware or software development, the procurement officer may authorize the use
of a base fee not to exceed 3 percent.
Base fee shall not be used when an
award fee incentive is used in conjunction with another contract type (e.g.,
CPIF/AF).
(b) When a base fee is authorized for
use in a CPAF contract, it shall be paid
only if the final award fee evaluation is
‘‘satisfactory’’ or better. (See 1816.405–
273 and 1816.405–275) Pending final evaluation, base fee may be paid during the
life of the contract at defined intervals
on a provisional basis. If the final
award fee evaluation is ‘‘poor/unsatisfactory’’, all provisional base fee payments shall be refunded to the Government.
[62 FR 3478, Jan. 23, 1997. Redesignated and
amended at 62 FR 36706, July 9, 1997; 63 FR
13133, Mar. 18, 1998]

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National Aeronautics and Space Administration
1816.405–272 Award fee evaluation periods.
(a) Award fee evaluation periods, including those for interim evaluations,
should be at least 6 months in length.
When appropriate, the procurement officer may authorize shorter evaluation
periods after ensuring that the additional administrative costs associated
with the shorter periods are offset by
benefits accruing to the Government.
Where practicable, such as developmental contracts with defined performance milestones (e.g., Preliminary Design Review, Critical Design Review,
initial system test), establishing evaluation periods at conclusion of the
milestones rather than calendar dates,
or in combination with calendar dates
should be considered. In no case shall
an evaluation period be longer than 12
months.
(b) A portion of the total available
award fee contract shall be allocated to
each of the evaluation periods. This allocation may result in an equal or unequal distribution of fee among the periods. The contracting officer should
consider the nature of each contract
and the incentive effects of fee distribution in determining the appropriate allocation structure.
[62 FR 3478, Jan. 23, 1997. Redesignated at 62
FR 36706, July 9, 1997, as amended at 63 FR
13133, Mar. 18, 1998]

1816.405–273 Award fee evaluations.
(a) Service contracts. On contracts
where the contract deliverable is the
performance of a service over any
given time period, contractor performance is often definitively measurable
within each evaluation period. In these
cases, all evaluations are final, and the
contractor keeps the fee earned in any
period regardless of the evaluations of
subsequent periods. Unearned award
fee in any given period in a service contract is lost and shall not be carried
forward, or ‘‘rolled-over,’’ into subsequent periods.
(b) End item contracts. On contracts,
such as those for end item deliverables,
where the true quality of contractor
performance cannot be measured until
the end of the contract, only the last
evaluation is final. At that point, the
total contract award fee pool is available, and the contractor’s total per-

1816.405–274

formance is evaluated against the
award fee plan to determine total
earned award fee. In addition to the
final evaluation, interim evaluations
are done to monitor performance prior
to contract completion, provide feedback to the contractor on the Government’s assessment of the quality of its
performance, and establish the basis
for making interim award fee payments (see 1816.405–276(a)). These interim evaluations and associated interim award fee payments are superseded by the fee determination made in
the final evaluation at contract completion. The Government will then pay
the contractor, or the contractor will
refund to the Government, the difference between the final award fee determination and the cumulative interim fee payments.
(c) Control of evaluations. Interim and
final evaluations may be used to provide past performance information during the source selection process in future acquisitions and should be marked
and controlled as ‘‘Source Selection Information—See FAR 3.104’’.
[63 FR 13133, Mar. 18, 1998]

1816.405–274 Award fee evaluation factors.
(a) Explicit evaluation factors shall
be established for each award fee period.
(b) Evaluation factors will be developed by the contracting officer based
upon the characteristics of an individual procurement. Normally, technical and schedule considerations will
be included in all CPAF contracts as
evaluation factors. Cost control shall
be included as an evaluation factor in
all CPAF contracts. When explicit
evaluation factor weightings are used,
cost control shall be no less than 25
percent of the total weighted evaluation factors. The predominant consideration of the cost control evaluation
should be a measurement of the contractor’s performance against the negotiated estimated cost of the contract. This estimated cost may include
the value of undefinitized change orders when appropriate.
(c)(1) The technical factor, if used,
must include consideration of risk
management (including mission success, safety, security, health, export

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1816.405–274

48 CFR Ch. 18 (10–1–02 Edition)

control, and damage to the environment, as appropriate) unless waived at
a level above the contracting officer,
with the concurrence of the project
manager. The rationale for any waiver
shall be documented in the contract
file. When safety, export control, or security are considered under the technical factor, the award fee plan shall
allow the following fee determinations,
regardless of contractor performance in
other evaluation factors, when there is
a major breach of safety or security.
(i) For evaluation of service contracts under 1816.405–273(a), an overall
fee determination of zero for any evaluation period in which there is a major
breach of safety or security.
(ii) For evaluation of end item contracts under 1816.405–273(b), an overall
fee determination of zero for any interim evaluation period in which there
is a major breach of safety or security.
To ensure that the final award fee evaluation at contract completion reflects
any major breach of safety or security,
in an interim period, the overall award
fee pool shall be reduced by the amount
of the fee available for the period in
which the major breach occurred if a
zero fee determination was made because of a major breach of safety or security.
(2) A major breach of safety must be
related directly to the work on the
contract. A major breach of safety is
an act or omission of the Contractor
that consists of an accident, incident,
or exposure resulting in a fatality or
mission failure; or in damage to equipment or property equal to or greater
than $1 million; or in any ‘‘willful’’ or
‘‘repeat’’ violation cited by the Occupational Safety and Health Administration (OSHA) or by a state agency operating under an OSHA approved plan.
(3) A major breach of security may
occur on or off Government installations, but must be directly related to
the work on the contract. A major
breach of security is an act or omission
by the contractor that results in compromise of classified information, illegal technology transfer, workplace violence resulting in criminal conviction,
sabotage, compromise or denial of information technology services, equipment or property damage from van-

dalism greater than $250,000, or theft
greater than $250,000.
(4) The Assistant Administrator for
Procurement (Code HS) shall be notified prior to the determination of a
zero award fee because of a major
breach of safety or security.
(d) In rare circumstances, contract
costs may increase for reasons outside
the contractor’s control and for which
the contractor is not entitled to an equitable adjustment. One example is a
weather-related launch delay on a
launch support contract. The Government shall take such situations into
consideration when evaluating contractor cost control.
(e) Emphasis on cost control should
be balanced against other performance
requirement objectives. The contractor
should not be incentivized to pursue
cost control to the point that overall
performance is significantly degraded.
For example, incentivizing an underrun
that results in direct negative impacts
on technical performance, safety, or
other critical contract objectives is
both
undesirable
and
counterproductive. Therefore, evaluation of
cost control shall conform to the following guidelines:
(1) Normally, the contractor should
be given a score of 0 for cost control
when there is a significant overrun
within its control. However, the contractor may receive higher scores for
cost control if the overrun is insignificant. Scores should decrease sharply as
the size of the overrun increases. In
any evaluation of contractor overrun
performance, the Government shall
consider the reasons for the overrun
and assess the extent and effectiveness
of the contractor’s efforts to control or
mitigate the overrun.
(2) The contractor should normally
be rewarded for an underrun within its
control, up to the maximum score allocated for cost control, provided the average numerical rating for all other
award fee evaluation factors is 81 or
greater (see 1816.405–275). An underrun
shall be rewarded as if the contractor
has met the estimated cost of the contract (see 1816.405–274(d)(3)) when the
average numerical rating for all other
factors is less than 81 but greater than
60.

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National Aeronautics and Space Administration
(3) The contractor should be rewarded for meeting the estimated cost
of the contract, but not to the maximum score allocated for cost control,
to the degree that the contractor has
prudently managed costs while meeting contract requirements. No award
shall be given in this circumstance unless the average numerical rating for
all other award fee evaluation factors
is 61 or greater.
(f) When an AF arrangement is used
in conjunction with another contract
type, the award fee’s cost control factor will only apply to a subjective assessment of the contractor’s efforts to
control costs and not the actual cost
outcome incentivized under the basic
contract type (e.g. CPIF, FPIF).
(g)(1) The contractor’s performance
against the subcontracting plan incorporated in the contract shall be evaluated. Emphasis may be placed on the
contractor’s accomplishment of its
goals for subcontracting with small
business, HUBZone small business,
women-owned small business, veteranowned small business, and service-disabled veteran-owned small business
concerns.
(2) The contractor’s performance
against the contract target for participation as subcontractors by small disadvantaged business concerns in the
NAICS Major Groups designated by the
Department of Commerce (see FAR
19.201(c)) shall also be evaluated if the
clause at FAR 52.219–26, Small Disadvantaged Business Participation—Incentive Subcontracting, is not included
in the contract (see FAR 19.1204(c)).
(3) The contractor’s achievements in
subcontracting high technology efforts
as well as the contractor’s performance
under the Mentor-Prote´ ge´ Program, if
applicable, may also be evaluated.
(4) The evaluation weight given to
the contractor’s performance against
the considerations in paragraphs (g)(1)
through (g)(3) of this section should be
significant (up to 15 percent of available award fee). The weight should motivate the contractor to focus management attention to subcontracting with
small, HUBZone, women-owned, veteran-owned, and service-disabled veteran-owned small business concerns,
and with small disadvantaged business
concerns in designated NAICS Major

1816.405–275

Groups to the maximum extent practicable, consistent with efficient contract performance.
(h) When contract changes are anticipated, the contractor’s responsiveness
to requests for change proposals should
be evaluated. This evaluation should
include the contractor’s submission of
timely, complete proposals and cooperation in negotiating the change.
(i) Only the award fee performance
evaluation factors set forth in the performance evaluation plan shall be used
to determine award fee scores.
(j) The Government may unilaterally
modify the applicable award fee performance evaluation factors and performance evaluation areas prior to the
start of an evaluation period. The contracting officer shall notify the contractor in writing of any such changes
30 days prior to the start of the relevant evaluation period.
[62 FR 3478, Jan. 23, 1997. Redesignated and
amended at 62 FR 36706, 36707, July 9, 1997; 63
FR 12998, Mar. 17, 1998; 64 FR 25215, May 11,
1999; 65 FR 37059, June 13, 2000; 65 FR 46628,
July 31, 2000; 65 FR 58932, Oct. 3, 2000; 65 FR
70316, Nov. 22, 2000; 66 FR 53547, Oct. 23, 2001;
67 FR 7618, Feb. 20, 2002]

1816.405–275
scoring.

Award

fee

evaluation

(a) A scoring system of 0–100 shall be
used for all award fee ratings. Award
fee earned is determined by applying
the numerical score to the award fee
pool. For example, a score of 85 yields
an award fee of 85 percent of the award
fee pool. No award fee shall be paid unless the total score is 61 or greater.
(b) The following standard adjectival
ratings and the associated numerical
scores shall be used on all award fee
contracts.
(1) Excellent (100–91): Of exceptional
merit; exemplary performance in a
timely, efficient, and economical manner; very minor (if any) deficiencies
with no adverse effect on overall performance.
(2) Very good (90–81): Very effective
performance, fully responsive to contract requirements; contract requirements accomplished in a timely, efficient, and economical manner for the
most part; only minor deficiencies.

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1816.405–276

48 CFR Ch. 18 (10–1–02 Edition)

(3) Good (80–71): Effective performance; fully responsive to contract requirements; reportable deficiencies,
but with little identifiable effect on
overall performance.
(4) Satisfactory (70–61): Meets or
slightly exceeds minimum acceptable
standards; adequate results; reportable
deficiencies with identifiable, but not
substantial, effects on overall performance.
(5) Poor/Unsatisfactory (less than 61):
Does not meet minimum acceptable
standards in one or more areas; remedial action required in one or more
areas; deficiencies in one or more areas
which adversely affect overall performance.
(c) As a benchmark for evaluation, in
order to be rated ‘‘Excellent,’’ the contractor must be under cost, on or ahead
of schedule, and have provided excellent technical performance.
(d) A scoring system appropriate for
the circumstances of the individual
contract requirement should be developed.
Weighted
scoring
is
recommended. In this system, each evaluation factor (e.g., technical, schedule,
cost control) is assigned a specific percentage weighting with the cumulative
weightings of all factors totaling 100.
During the award fee evaluation, each
factor is scored from 0–100 according to
the ratings defined in 1816.405–275(b).
The numerical score for each factor is
then multiplied by the weighting for
that factor to determine the weighted
score. For example, if the technical
factor has a weighting of 60 percent
and the numerical score for that factor
is 80, the weighted technical score is 48
(80×60 percent). The weighted scores for
each evaluation factor are then added
to determine the total award fee score.
[62 FR 3478, Jan. 23, 1997. Redesignated and
amended at 62 FR 36706, 36707, July 9, 1997; 63
FR 13134, Mar. 18, 1998]

1816.405–276 Award fee payments and
limitations.
(a) Interim award fee payments. The
amount of an interim award fee payment (see 1816.405–273(b)) is limited to
the lesser of the interim evaluation
score or 80 percent of the fee allocated
to that interim period less any provisional payments (see paragraph (b) of

this subsection) made during the period.
(b) Provisional award fee payments.
Provisional award fee payments are
payments made within evaluation periods prior to an interim or final evaluation for that period. Provisional payments may be included in the contract
and should be negotiated on a case-bycase basis. For a service contract, the
total amount of award fee available in
an evaluation period that may be provisionally paid is the lesser of a percentage stipulated in the contract (but
not exceeding 80 percent) or the prior
period’s evaluation score. For an end
item contract, the total amount of provisional payments in a period is limited to a percentage not to exceed 80
percent of the prior interim period’s
evaluation score.
(c) Fee payment. The Fee Determination Official’s rating for both interim
and final evaluations will be provided
to the contractor within 45 calendar
days of the end of the period being
evaluated. Any fee, interim or final,
due the contractor will be paid no later
than 60 calendar days after the end of
the period being evaluated.
[63 FR 13134, Mar. 18, 1998]

1816.406

Contract clauses.

[62 FR 3478, Jan. 23, 1997. Redesignated at 62
FR 36706, July 9, 1997]

1816.406–70 NASA contract clauses.
(a) As authorized by FAR 16.406(e),
the contracting officer shall insert the
clause at 1852.216–76, Award Fee for
Service Contracts, in solicitations and
contracts when an award fee contract
is contemplated and the contract deliverable is the performance of a service.
(b) As authorized by FAR 16.406(e),
the contracting officer shall insert the
clause at 1852.216–77, Award Fee for End
Item Contracts, in solicitations and
contracts when an award fee contract
is contemplated and the contract
deliverables are hardware or other end
items for which total contractor performance cannot be measured until the
end of the contract. When the clause is
used in a fixed-price award fee contract, it shall be modified by deleting
references to base fee in paragraphs (a),
and by deleting paragraph (c)(1), the

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National Aeronautics and Space Administration
last sentence of (c)(4), and the first sentence of (c)(5).
(c) The contracting officer may insert a clause substantially as stated at
1852.216–83, Fixed Price Incentive, in
fixed-price-incentive solicitations and
contracts utilizing firm or successive
targets. For items subject to incentive
price revision, identify the target cost,
target profit, target price, and ceiling
price for each item.
(d) The contracting officer shall insert the clause at 1852.216–84, Estimated Cost and Incentive Fee, in costplus-incentive-fee
solicitations
and
contracts.
(e) The contracting officer may insert the clause at 1852.216–85, Estimated Cost and Award Fee, in cost an
award fee solicitations and contracts.
When the contract includes performance incentives, use Alternate I. When
the clause is used in a fixed-price
award fee contract, it shall be modified
to delete references to base fee and to
reflect the contract type.
(f) As provided at 1816.402–270, the
contracting officer shall insert a clause
substantially as stated at 1852.216–88,
Performance Incentive, when the primary deliverable(s) is (are) hardware
and total estimated cost and fee is
greater than $25 million. A clause substantially as stated at 1852.216–88 may
be included in lower dollar value hardware contracts with the approval of the
procurement officer.
[62 FR 3478, Jan. 23, 1997. Redesignated and
amended at 62 FR 36706, 36707, July 9, 1997; 62
FR 58687, Oct. 30, 1997; 63 FR 13134, Mar. 18,
1998]

Subpart 1816.5—IndefiniteDelivery Contracts
1816.504 Indefinite quantity contracts.
(NASA supplements paragraph (a))
(a)(4)(ii) ID/IQ service contract values
and task order values shall be expressed only in dollars.
(a)(4)(v) See 1815.7003.
[62 FR 3478, Jan. 23, 1997, as amended at 65
FR 38777, June 22, 2000]

1816.505 Ordering.
(NASA
supplements paragraphs (a) and (b))
(a)(2) Task and delivery orders shall
be issued by the contracting officer.

1816.506–70

(b)(5) The Agency and installation
ombudsmen designated in accordance
with 1815.7001 shall review complaints
from contractors on task order contracts and delivery order contracts.
[62 FR 3478, Jan. 23, 1997, as amended at 64
FR 51079, Sept. 21, 1999; 65 FR 38777, June 22,
2000; 65 FR 46628, July 31, 2000]

1816.505–70

Task ordering.

(a) The contracting officer shall, to
the maximum extent possible, state
task order requirements in terms of
functions and the related performance
and quality standards such that the
standards may be objectively measured.
(b) To the maximum extent possible,
contracting officers shall solicit contractor task plans to use as the basis
for finalizing task order requirements
and enable evaluation and pricing of
the contractor’s proposed work on a
performance based approach as described in 1816.104–70(a).
(c) Task order contract type shall be
individually determined, based on the
nature of each task order’s requirements.
(1) Task orders may be grouped by
contract type for administrative convenience (e.g., all CPIF orders, all FFP
orders, etc.) for contractor progress
and cost reporting.
(2) Under multiple awards, solicitations for individual task plans shall request the same pricing structure from
all offerors.
(d) Any undefinitized task order
issued under paragraph (f) of the clause
at 1852.216–80, Task Ordering Procedure, shall be treated and reported as
an undefinitized contract action in accordance with 1843–70.
[62 FR 3478, Jan. 23, 1997, as amended at 65
FR 46628, July 31, 2000]

1816.506–70

NASA contract clause.

Insert the clause at 1852.216–80, Task
Ordering Procedure, in solicitations
and contracts when an indefinite-delivery, task order contract is contemplated. The clause is applicable to
both fixed-price and cost-reimbursement type contracts. If the contract
does not require 533M reporting (See

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1816.603

48 CFR Ch. 18 (10–1–02 Edition)

NPG 9501.2, NASA Contractor Financial Management Reporting System),
use the clause with its Alternate I.
[62 FR 3478, Jan. 23, 1997, as amended at 64
FR 51079, Sept. 21, 1999]

Subpart 1816.6—Time-and-Materials, Labor-Hour, and Letter
Contracts
1816.603

Letter contracts.

1816.603–2

Application.

(a) Centers must ensure that NASA
liabilities and commitments are minimized under letter contracts. When a
letter contract is justified and program
requirements can be severed into
smaller, discreet efforts, the work authorized by the letter contract must be
limited to the minimum severable effort required to satisfy the urgent program requirements. The remaining requirements may not be initially included in the letter contract and must
be acquired through a separate fully
priced and definitized contract action.
[66 FR 53547, Oct. 23, 2001]

1816.603–370

(b) All requests for authority to issue
a letter contract must include the following:
(1) Contractor name and address.
(2) Place of performance.
(3) Contract number, including modification number, if applicable.
(4) Brief description of the work or
services to be performed.
(5) Performance period or delivery
schedule for both the letter contract
and definitized contract.
(6) Estimated value of the work authorized by the letter contract.
(7) Estimated value of the definitized
contract.
(8) Contract type of the definitized
contract.
(9) A statement that the definitized
contract will contain all required
clauses or identification of approved
specific clause deviations.
(10) Complete justification of the necessity for the letter contract, including the advantages to the Government
and a description of the efforts to avoid
its issuance or to minimize its scope.
(11) The definitization schedule described in FAR 16.603–2(c) expected to
be negotiated with the contractor.
[67 FR 30603, May 7, 2002]

Approvals.

(a)(1) The approval authority to issue
a letter contract is—
(i) The Assistant Administrator for
Procurement when the estimated value
of the definitized contract is equal to
or greater than the Master Buy Plan
(MBP)
submission
threshold
of
1807.7101;
(ii) The procurement officer when the
estimated value of the definitized contract is below the MBP submission
threshold; and
(iii) The Assistant Administrator for
Procurement for any modification of
an undefinitized letter contract approved by the procurement officer that
increases the estimated value of the
definitized contract to an amount
equal to or above the MBP submission
threshold. This approval must be obtained prior to issuing the modification.
(2) The procurement officer must sign
all requests for approval by the Assistant Administrator for Procurement
and submit them to Code HS.

PART 1817—SPECIAL
CONTRACTING METHODS
Subpart 1817.1—Multiyear Contracting
Sec.
1817.105 Policy.
1817.105–1 Uses.

Subpart 1817.2—Options
1817.200 Scope of subpart.
1817.203 Solicitations.
1817.204 Contracts.
1817.206 Evaluation.
1817.207 Exercise of options.
1817.208 Solicitation provisions
tract clauses.

and

Subpart 1817.4—Leader Company
Contracting
1817.401

General.

Subpart 1817.5—Interagency Acquisitions
Under the Economy Act
1817.503 Determinations and
quirements.
1817.504 Ordering procedures.

findings

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National Aeronautics and Space Administration
Subpart 1817.70—Acquisitions With Military
Departments
1817.7000 Scope of subpart.
1817.7001 Authorization and policy.
1817.7002 NASA-Defense Purchase Request
and acceptance.
1817.7002–1 Acceptance by Military Department.
1817.7002–2 Changes in estimated total
prices.
1817.7002–3 Payments.
1817.7002–4 Contract clause.

Policy.

Subpart 1817.72—Interagency Transactions
1817.7201

Policy.

Subpart 1817.730—Phased Acquisition
1817.7300 Definitions.
1817.7301 Down-selctions in phased acquisitions.
1817.7301–1 Pre-solicitation planning.
1817.7301–2 Evaluation factors.
1817.7301–3 Down-selection milestones.
1817.7301–4 Synopsis.
1817.7301–5 Progressive competition.
1817.7302 Contract clauses.
AUTHORITY: 42 U.S.C. 2473(c)(1)
SOURCE: 61 FR 55753, Oct. 29, 1996, unless
otherwise noted.

Subpart 1817.1—Multiyear
Contracting
1817.105

Subpart 1817.2—Options
1817.200

Scope of subpart.

FAR subpart 17.2 applies to all NASA
contracts.
1817.203 Solicitations. (NASA supplements paragraph (g))
(g)(2) The procurement officer is authorized to approve option quantities
greater than 50 percent.
1817.204 Contracts.
(NASA
ments paragraph (e))

Subpart 1817.71—Exchange or Sale of
Personal Property
1817.7101

1817.207

Policy.

1817.105–1 Uses. (NASA supplements
paragraph (b))
(b) The Assistant Administrator for
Procurement (Code HS) is the approval
authority for the use of the multiyear
contracting technique. Requests for approval shall be signed by the procurement officer and shall include a description of the acquisition, identification of anticipated contract costs and
funding, and a determination, with
supporting rationale, that each of the
criteria in FAR 17.105–1(b) (1) through
(5) is met by the proposed use of
multiyear contracting.

(e)(i) The 5-year limitation (basic
plus option periods) does not apply
when the time needed to complete system development or hardware production is greater than five years.
(ii) Requests for deviations from the
5-year limitation policy shall be sent
to the Assistant Administrator for Procurement (Code HS) and shall include
justification for exceeding five years
and evidence that the extended years
can be reasonably priced.
1817.206 Evaluation. (NASA
ments paragraph (b))

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(b)(i) The procurement officer is the
approval authority for determinations
by the contracting officer not to evaluate offers for any option quantities or
periods.
(ii) Unless a determination has been
approved under 1817.206(b)(i), the selection statement for each acquisition involving an option shall address the
source selection authority’s consideration of the option as part of the initial competition.
1817.207 Exercise of options. (NASA
supplements paragraph (f))
(f) Options under cost type contracts
shall contain an estimated cost for the
option period(s).
(f)(2) Use of the provision (or formula) for determining the price of a
fixed price option requires advance approval by the Assistant Administrator
for Procurement (Code HS).
(f)(3)(ii) Use of a formula to determine the fee of an option in a cost-type
contract requires advance approval of
the Assistant Administrator for Procurement (Code HS). The formula shall

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1817.208

48 CFR Ch. 18 (10–1–02 Edition)

preclude the contractor from increasing costs for the purpose of earning additional fee.
1817.208 Solicitation provisions and
contract clauses. (NASA supplements paragraph (c))
(c)(3) The contracting officer shall insert a provision substantially the same
as FAR 52.217–5 in cost reimbursement
contracts when the other conditions of
FAR 17.208(c) are met.

Subpart 1817.4—Leader Company
Contracting
1817.401 General.
It is NASA policy not to use the leader company contracting technique.

Subpart 1817.5—Interagency Acquisitions Under the Economy
Act
1817.503 Determinations and findings
requirements. (NASA supplements
paragraph (a))
(a) See 1817.72 for additional information on interagency transaction requirements.
(2) Current market prices, recent acquisition prices, or prices obtained by
informational submissions as provided
in FAR 15.201 may be used to ascertain
whether the acquisition can be accomplished more economically from commercial sources.
(c) The Assistant Administrator for
Procurement as the agency senior procurement executive will approve all
D&F’s for a servicing agency not covered by the Federal Acquisition Regulations. This approval may not be delegated below the senior procurement executive level.
[61 FR 55753, Oct. 29, 1996, as amended at 62
FR 58687, Oct. 30, 1997; 63 FR 9967, Feb. 27,
1998; 66 FR 53547, Oct. 23, 2001]

1817.504 Ordering procedures. (NASA
supplements paragraph (b))
(b)(4) All payment provisions shall
require the servicing agency or department to submit a final voucher, invoice, or other appropriate payment
document within six months after the
completion date of the order. A different period may be specified by mu-

tual agreement if six months is not sufficient. The rationale for a longer period shall be documented in the contract file.

Subpart 1817.70—Acquisitions
With Military Departments
1817.7000

Scope of subpart.

This subpart contains policies and
procedures, developed jointly by NASA
and DOD, for acquisition of supplies or
services by NASA from or through the
Military Departments.
1817.7001

Authorization and policy.

(a) NASA is authorized by the National Aeronautics and Space Act of
1958 (42 U.S.C. 2451 et seq.) to use the
acquisition services, personnel, equipment, and facilities of the Military Departments, with their consent and with
or without reimbursement, and, on a
similar basis, to cooperate with the
Military Departments in the use of acquisition services, equipment, and facilities.
(b) The Military Departments have
agreed to cooperate fully with NASA in
making their acquisition services,
equipment, personnel, and facilities
available on the basis of mutual agreement.
(c) The Military Departments have
agreed not to claim reimbursement for
administrative costs incident to acquisitions for NASA, except as may be
otherwise agreed before the services
are performed.
(d) When procuring supplies or services for NASA or performing field service functions in support of NASA contracts, the Military Departments have
agreed to use their own methods, except when otherwise required by the
terms of the agreement involved.
(e) The Military Departments normally will use their own funds when
procuring supplies or services or performing services for NASA, and will
not cite NASA funds on any Defense
obligation or payment document.
[61 FR 55753, Oct. 29, 1996, as amended at 62
FR 58687, Oct. 30, 1997]

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National Aeronautics and Space Administration
1817.7002 NASA-Defense Purchase Request and acceptance.
(a) The NASA-Defense Purchase Request (NASA Form 523) shall be used by
NASA contracting offices for requesting acquisition of supplies or services
from all activities of the Military Departments. Individual NASA-Defense
Purchase Requests shall be prepared in
accordance with the instructions on
the reverse of NASA Form 523 and shall
be numbered in accordance with subpart 1804.71. The form shall not be used
for requesting—
(1) Block transfers of excess property
between NASA and the Military Departments;
(2) Performance by the Military Departments of field service functions related to NASA contracts; or
(3) Items that the Military Departments normally purchase and stock for
military use or in-house service, except
when a DOD activity is willing to accept the form for these purposes. Supplies and services of this nature may be
requisitioned using appropriate DOD
forms when they are provided by and
are acceptable to or preferred by the
Military Department supplying activity or as otherwise mutually agreed
upon by the parties.
(b) The contracting officer shall include a provision in the order in accordance with 1817.504(b)(4).
(c) To obtain materials from the Air
Force Missile Procurement Fund, the
contracting officer shall follow the procedures of 1808.002–72.
1817.7002–1 Acceptance by Military
Department.
(a) Except as provided in paragraph
(c) of this section, the Military Department concerned will, within 30 days
after receipt of a NASA-Defense Purchase Request, forward to the initiator
of the request an Acceptance of MIPR,
DD Form 448–2. Each DD Form 448–2
will show the action being taken to fill
the requirement and the name and
complete address of the DOD contracting activity.
(b) To the extent feasible, all documents (including acceptances, contracts, correspondence, shipping documents, work or project orders, and
Standard Form 1080 (Voucher for
Transfer between Appropriations and/

1817.7101

or Funds) billings) will reference the
NASA-Defense Purchase Request number and the item number.
(c) Acceptance by the Military Department is not required for NASA-Defense Purchase Requests covering deliveries of common-use standard-stock
items that the supplying agency has on
hand or on order for prompt delivery at
published prices.
1817.7002–2
prices.

Changes in estimated total

When a Military Department determines that the estimated total price
(Block 7, NASA Form 523) of the items
to be acquired for NASA is not sufficient to cover the required reimbursement or is in excess of the amount required, a request for an amendment
will be forwarded to the NASA originating office. The request will indicate
a specific dollar amount, rather than a
percentage, and will include justification for any upward adjustment requested. Upon approval of the request,
the cognizant NASA contracting office
shall forward to the DOD contracting
activity an amendment to the NASA
Defense Purchase Request.
1817.7002–3

Payments.

Except when agreements provide that
reimbursement is not required, payments to the Military Departments
shall be made by that NASA office designated in block 9 of the NASA-Defense
Purchase Request upon receipt of
Standard Form 1080. Billings will be
supported in the same manner as billings between Military Departments.
1817.7002–4

Contract clause.

The contracting officer shall insert
the clause at 1852.217–70, Property Administration and Reporting, in any
NASA-Defense Purchase Request when
property will be involved.

Subpart 1817.71—Exchange or
Sale of Personal Property
1817.7101

Policy.

(a) Section 201(c) of the Federal Property and Administrative Services Act
of 1949, 63 Stat. 384, as amended (40
U.S.C. 481(c)), authorizes the exchange

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1817.7201

48 CFR Ch. 18 (10–1–02 Edition)

or sale of Government personal property and the application of the exchange allowance or proceeds from the
sale to the acquisition of similar property for replacement purposes. The
transaction must be evidenced in writing.
(b) NASA installations and contractors are authorized to conduct exchange/sale transactions as long as the
requirements and restrictions of NPG
4300.1 and the Federal Property Management Regulations, Subchapter H,
part 101–46, are followed. In conducting
such exchanges/sales, NASA contractors must obtain the contracting officer’s prior written approval and must
report the transactions to the cognizant NASA installation Property
Disposal Officer (PDO).
[61 FR 55753, Oct. 29, 1996, as amended at 65
FR 58932, Oct. 3, 2000]

Subpart 1817.72—Interagency
Transactions
1817.7201

Policy.

(a) Although the Space Act provides
interagency
transaction
authority
nearly equivalent to the Economy Act,
NASA has elected to conform its implementation of the Space Act to the requirements of the Economy Act. Therefore, unless exempt from the Economy
Act for reasons other than the general
authority of the Space Act, interagency acquisitions shall be supported
by a Determination and Findings
equivalent to that required for Economy Act transactions (see FAR 17.503
and 1817.503). This requirement applies
to all purchases of goods or services
under contracts entered into or administered by the Military Departments or
other agencies. The Space Act may be
cited as authority for a transaction
where appropriate, but that does not
provide relief from this D&F requirement.
(b) The determination described in
paragraph (a) of this section is not required for contracts awarded under the
Space Act to Government agencies pursuant to a Broad Agency Announcement when a review of the acquisition
records would make it obvious that the
award is nor being used as a method of
circumventing regulatory or statutory

requirements, particularly FAR part 6,
Competition Requirements (e.g., when
a significant number and value of
awards made under the BAA are made
to entities other than Government
agencies).
[62 FR 58687, Oct. 30, 1997]

Subpart 1817.73—Phased
Acquisition
SOURCE: 63 FR 56091, Oct. 21, 1998, unless
otherwise noted.

1817.7300

Definitions.

(a) Down-selection. In a phased acquisition, the process of selecting contractors for later phases from among the
preceding phase contractors.
(b) Phased Acquisition. An incremental acquisition implementation
comprised of several distinct phases
where the realization of program/
project objectives requires a planned,
sequential acquisition of each phase.
The phases may be acquired separately,
in combination, or through a down-selection strategy.
(c) Progressive Competition. A type of
down-selection strategy for a phased
acquisition. In this method, a single solicitation is issued for all phases of the
program. The initial phase contracts
are awarded, and the contractors for
subsequent phases are expected to be
chosen through a down-selection from
among the preceding phase contractors. In each phase, progressively fewer
contracts are awarded until a single
contractor is chosen for the final
phase. Normally, all down-selections
are accomplished without issuance of a
new, formal solicitation.
1817.7301 Down-selections in phased
acquisitions.
1817.7301–1

Pre-solicitation planning.

(a) The rationale for the use of the
down-selection technique shall be thoroughly justified in the acquisition
planning requirement. Because the initial phase solicitation will also lead to
subsequent phase award(s), the decision
to use a down-selection strategy must
be made prior to release of the initial
solicitation. Accordingly, all phases

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National Aeronautics and Space Administration
must be addressed in the initial acquisition strategy planning and documented in the acquisition plan or ASM
minutes.
(b) If there is no direct link between
successful performance in the preceding phase and successful performance in a subsequent phase, down-selection is inappropriate. In this case, the
phases should be contracted for separately without a down-selection.
(c) With one exception, both the initial and subsequent phase(s) of an acquisition down-selection process are
considered to be full and open competition if the procedures in 1817.7301–4 and
1817.7301–5 (if using the progressive
competition technique) are followed. If
only one contractor successfully completed a given phase and no other offers
are solicited for the subsequent phase,
award of the subsequent phase may be
made only if justified by one of the exceptions in FAR 6.302 or one of the exclusions in FAR 6.2, and only after
compliance with the synopsis requirements of FAR 5.202 and 5.205 and
1804.570–2.
1817.7301–2 Evaluation factors.
A separate set of evaluation factors
must be developed for each phase in a
down-selection
competition.
Since
these
competitive
down-selection
strategies anticipate that a preceding
phase contractor will be the subsequent phase contractor, the evaluation
factors for initial phase award must
specifically include evaluation of the
offerors’ abilities to perform all phases.
1817.7301–3 Down-selection
milestones.
(a) When sufficient programmatic
and technical information is available
to all potential offerors, proposal evaluation and source selection activities
need not be delayed until completion of
a given phase. These activities should
commence as early as practicable. The
initial phase contracts should be structured to allow for down-selection at a
discrete performance milestone (e.g., a
significant design review or at contract
completion) of a design maturity sufficient to allow for an informed selection
decision. This will avoid time gaps between phases and eliminate unnecessary duplication of effort.

1817.7301–4

(b) The appropriate contract structure must reflect program technical
objectives as well as schedule considerations. For example, if a two-phased
acquisition strategy calls for formal
completion of initial phase effort at
Preliminary Design Review (PDR), but
it is not financially practical or technically necessary for subsequent phase
award and performance to carry all initial phase contractors through PDR,
the initial phase contracts should be
structured with a basic period of performance through a significant, discrete milestone before PDR with a
priced option for effort from that milestone to PDR. The down-selection
would occur at the earlier milestone,
the PDR option exercised only for the
down-selection winner, and the subsequent phase performance begun at the
completion of the PDR option.
1817.7301–4

Synopsis.

(a) Each phase of a phased acquisition not performed in-house must be
synopsized in accordance with FAR
5.201 and must include all the information required by FAR 5.207. Time gaps
between phases should be minimized by
early synopsis of subsequent phase
competition. The synopsis for the initial competitive phase should also
state the following:
(1) The Government plans to conduct
a phased acquisition involving a competitive
down-selection
process.
(Include a description of the process
and the phases involved.)
(2) Competitions for identified subsequent phases will build on the results
of previous phases.
(3) The award criteria for subsequent
phases will include demonstrated completion of specified previous phase requirements.
(4) The Government expects that
only the initial phase contractors will
be capable of successfully competing
for the subsequent phase(s). Proposals
for the subsequent phase(s) will be requested from these contractors.
(5) The Government intends to issue
(or not issue) a new, formal solicitation(s) for subsequent phase(s). If new
solicitations are not planned, the acquisition must be identified as a
‘‘progressive
competition’’
(see

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1817.7301–5

48 CFR Ch. 18 (10–1–02 Edition)

1817.7301–5), and the mechanism for providing pertinent subsequent phase proposal information (e.g., statements of
work, specifications, proposal preparation instructions, and evaluation factors for award) must be described.
(6) Each subsequent phase of the acquisition will be synopsized in accordance with FAR 5.201 and 5.203.
(7) Notwithstanding the expectation
that only the initial phase contractors
will be capable of successfully competing for the subsequent phase(s), proposals from all responsible sources submitted by the specified due date will be
considered. In order to contend for subsequent phase awards, however, such
prospective offerors must demonstrate
a design maturity equivalent to that of
the prior phase contractors. Failure to
fully and completely demonstrate the
appropriate level of design maturity
may render the proposal unacceptable
with no further consideration for contract award.
(b) In addition to the information in
paragraph (a) of this section, the synopsis for the subsequent phase(s) must
identify the current phase contractors.
1817.7301–5 Progressive competition.
(a) To streamline the acquisition
process, the preferred approach for
NASA phased acquisitions is the
‘‘progressive competition’’ down-selection technique in which new, formal solicitations are not issued for phases
subsequent to the initial phase. Subsequent phase proposals are requested by
less formal means, normally by a letter
accompanied by the appropriate proposal preparation and evaluation information.
(b) When using the progressive competition technique, if a prospective offeror other than one of the preceding
phase contractors responds to the synopsis for a subsequent phase and indicates an intention to submit a proposal, the contracting officer shall provide to that offeror all the material
furnished to the preceding phase contractors necessary to submit a proposal. This information includes the
preceding phase solicitation, contracts,
and system performance and design requirements, as well as all proposal
preparation instructions and evaluation factors. In addition, the prospec-

tive offeror must be advised of all requirements necessary for demonstration of a design maturity equivalent to
that of the preceding phase contractors.
(c) A key feature of the progressive
competition technique is that a formal
solicitation is normally not required.
However, when the Government requirements or evaluation procedures
change so significantly after release of
the initial phase solicitation that a
substantial portion of the information
provided in the initial phase synopsis,
solicitation, or contracts is no longer
valid, a new solicitation shall be issued
for the next phase.
(d)
Subsequent
phase
proposals
should be requested by a letter including the following:
(1) A specified due date for the proposals along with a statement that the
late proposal information in paragraph
(c)(3) of FAR 52.215–1, Instructions to
Offerors—Competitive Acquisition, applies to the due date.
(2) Complete instructions for proposal preparation, including page limitations, if any.
(3) Final evaluation factors.
(4) Any statement of work, specifications, or other contract requirements
that have changed since the initial solicitation.
(5) All required clause changes applicable to new work effective since the
preceding phase award.
(6) Any representations or certifications, if required.
(7) Any other required contract updates (e.g., small and small disadvantaged business goals).
(e) Certain factors may clearly dictate that the progressive competition
technique should not be used. For example, if it is likely that NASA may
introduce a design concept independent
of those explored by the preceding
phase contractors, it is also likely that
a new, formal solicitation is necessary
for the subsequent phase and all potential offerors should be solicited. In this
circumstance, progressive competition
is inappropriate.
1817.7302

Contract clauses.

(a) The contracting officer shall insert the clause at 1852.217–71, Phased

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National Aeronautics and Space Administration
Acquisition Using Down-Selection Procedures, in solicitations and contracts
for phased acquisitions using down-selection procedures other than the progressive competition technique described in 1817.7301–5. The clause may
be modified as appropriate if the acquisition has more than two phases. The
clause shall be included in the solicitation for each phase and in all contracts
except that for the final phase.
(b) The contracting officer shall insert the clause at 1852.217–72, Phased

1817.7302

Acquisition Using Progressive Competition Down-Selection Procedures, in
solicitations and contracts for phased
acquisitions using the progressive competition
technique
described
in
1817.7301–5. The clause may be modified
as appropriate if the acquisition has
more than two phases. The clause shall
be included in the initial phase solicitation and all contracts except that for
the final phase.

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SUBCHAPTER D—SOCIOECONOMIC PROGRAMS
Subpart 1819.10—Small Business
Competitiveness Demonstration Program

PART 1819—SMALL BUSINESS
PROGRAMS

1819.1005
Sec.
1819.001

Subpart 1819.70—NASA 8 Percent Goal

Definitions.

1819.7000
1819.7002
1819.7003

Subpart 1819.2—Policies
1819.201

Applicability.

General policy.

Subpart 1819.71—NASA Rural Area Small
Business Plan

Subpart 1819.3—Determination of Small
Business Status for Small Business Programs
1819.302 Protesting a small business representation.

Subpart 1819.5—Set-Asides for Small
Business
1819.502 Setting aside acquisitions.
1819.502–70 Non-initiation of set-asides.
1819.502–3 Partial set-asides.
1819.502–370 NASA reporting requirements.
1819.505 Rejecting Small Business Administration recommendations.
1819.506 Withdrawing or modifying small
business set-asides.

Subpart 1819.6—Certificates of Competency and Determinations of Responsibility
1819.602 Procedures.
1819.602–1 Referral.
1819.602–3 Resolving differences between the
agency and the Small Business Administration.
1819.602–370 NASA procedures.

Subpart 1819.7—The Small Business
Subcontracting Program
1819.705–2 Determining the need for a subcontracting plan.
1819.705–4 Reviewing the subcontracting
plan.
1819.705–470 Acquisition-specific
subcontracting goals.
1819.708 Contract clauses.
1819.708–70 NASA solicitation provision and
contract clause.

Subpart 1819.8—Contracting With the
Small Business Administration (the 8(a)
Program)
1819.804 Evaluation, offering, and acceptance.
1819.804–1 Agency evaluation.

General.
Contracting officer responsibility.
Contract clause.

1819.7101
1819.7102
1819.7103
tract

Definition.
General.
Solicitation
clause.

provision

and

´ ge
´
Subpart 1819.72—NASA Mentor-Prote
Program
1819.7201 Scope of subpart.
1819.7202 Definitions.
1819.7203 Non-affiliation.
1819.7204 Transportability of features from
the Department of Defense (DOD) Mentor-Prote´ ge´ program to NASA contractors.
1819.7205 General policy.
1819.7206 Incentives for prime contractor
participation.
1819.7207 Measurement of Program success.
1819.7208 Mentor firms.
1819.7209 Prote´ ge´ firms.
1819.7210 Selection of prote´ ge´ firms.
1819.7211 Application process for mentor
firms to participate in the Program.
1819.7212 OSDBU review and approval process of agreement.
1819.7213 Agreement contents.
1819.7214 Developmental assistance.
1819.7215 Obligation.
1819.7216 Internal controls.
1819.7217 Reports.
1819.7218 Program review.
1819.7219 Solicitation provision and contract clauses.
AUTHORITY: 42 U.S.C. 2473(c)(1).
SOURCE: 62 FR 36707, July 9, 1997, unless
otherwise noted.

1819.001 Definitions.
High-Tech as used in this part means
research and/or development efforts
that are within or advance the state-ofthe-art in a technology discipline and
are performed primarily by professional engineers, scientists, and highly
skilled and trained technicians or specialists.

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National Aeronautics and Space Administration

Subpart 1819.2—Policies
1819.201 General policy. (NASA supplements paragraphs (a), (c), (d),
and (f))
(a)(i) NASA is committed to providing to small, veteran-owned small
business,
service-disabled
veteranowned small business, HUBZone, small
disadvantaged,
and
women-owned
small business concerns, maximum
practicable opportunities to participate in Agency acquisitions at the
prime contract level. The participation
of NASA prime contractors in providing subcontracting opportunities to
such entities is also an essential part
of the Agency’s commitment. The participation of these entities is particularly emphasized in high-technology
areas where they have not traditionally dominated.
(ii) NASA annually negotiates Agency small, service-disabled veteranowned small business, HUBZone, small
disadvantaged,
and
women-owned
small business prime and subcontracting goals with the Small Business
Administration pursuant to section
15(g) of the Small Business Act (15
U.S.C. 644). In addition, NASA has the
following statutory goals based on the
total value of prime and subcontract
awards:
(A) Under Public Laws 101–144, 101–
507, and 102–389, an annual goal of at
least 8 percent for prime and subcontract awards to small disadvantaged business (SDB) concerns, Historically Black Colleges and Universities
(HBCUs), minority institutions (MIs),
and women-owned small businesses
(WOSBs) (see 1819.7000); and
(B) Under 10 U.S.C. 2323, an annual
goal of 5 percent for prime and subcontract awards to SDBs, HBCUs, and
WOSBs.
(c) The Associate Administrator for
Small and Disadvantaged Business Utilization (Code K) is the Agency official
responsible for carrying out the duties
in FAR 19.201(c).
(d)(i) The center director shall designate a qualified individual in the
contracting office as a small business
specialist to provide a central point of
contact to which small business concerns may direct inquiries concerning
small business matters and participa-

1819.201

tion in NASA acquisitions. The small
business specialist shall also perform
other functions specifically set forth in
this section 1819.201 or that the procurement officer may prescribe, with
the concurrence of the Associate Administrator for Small and Disadvantaged Business Utilization, for implementing the Small Business Program.
When the center director considers
that the volume of acquisitions or the
functions relating to acquisitions at
the center do not warrant a full-time
small business specialist, these duties
may be assigned to procurement personnel on a part-time basis.
(ii) Small business specialists appointed under paragraph (d)(i) of this
subsection shall perform the following
duties, as the procurement officer determines appropriate to the installation:
(A) Maintain a program designed to
locate capable small business sources,
including those located in labor surplus
areas, for current and future acquisitions.
(B) Coordinate inquiries and requests
for advice from small business concerns on acquisition matters.
(C) Before issuance of solicitations or
contract modifications for additional
supplies or services, determine that
small business concerns will receive
adequate
consideration,
including
making recommendations for initiation of set-asides (see FAR 19.5 and
19.8) and for taking action in accordance with FAR 19.506(b) and 1819.502–70.
Participate and provide input early in
the acquisition planning phase of proposed acquisitions, including acquisition strategy meetings.
(D) If small business concerns cannot
be given an opportunity to compete because adequate specifications or drawings are not available, work with appropriate technical and contracting
personnel to ensure that necessary
specifications or drawings for current
or future acquisitions will be available.
(E) Review acquisitions for possible
breakout of items suitable for acquisition from small business concerns.
(F) Advise small business concerns
regarding financial assistance available under laws and regulations, assist

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1819.302

48 CFR Ch. 18 (10–1–02 Edition)

such concerns in applying for such assistance, and ensure that small business concerns’ requests for financial assistance are not treated as a handicap
in securing the award of contracts.
(G) Participate in responsibility determinations (see FAR 9.103) when
small business concerns are involved.
(H) Participate in the evaluation of
prime contractors’ small business subcontracting programs (see FAR 19.705–
4).
(I) Review and make appropriate recommendations to the contracting officer on any proposal to furnish Government-owned facilities to a contractor if
such action may hurt the Small Business Program.
(J) Ensure that participation of small
business concerns is accurately reported.
(K) Make available to SBA copies of
solicitations when requested.
(L) Act as liaison between contracting officers and SBA area offices
and representatives in connection with
set-asides, certificates of competency,
and any other matters in which the
Small Business Program may be involved.
(M) In cooperation with contracting
officers and technical personnel, seek
and develop information on the technical competence of small business
concerns for research and development
contracts. Regularly bring to the attention of contracting officers and
technical personnel descriptive data,
brochures, and other information regarding small business concerns that
are apparently competent to perform
research and development work in
fields in which NASA is interested.
(N) When a small business concern’s
offer has been rejected for nonresponsiveness or nonresponsibility, assist that concern, upon its request, in
understanding such requirements for
future awards.
(O) Advise center personnel, as necessary, on new Governmentwide and
Agency-approved small business programs and initiatives.
(f)(1) The NASA Ombudsman, the Director of the Contract Management Division (Code HK), is the designated official for determining whether the use of
the SDB mechanism in FAR subpart
19.11 has resulted in an undue burden

on non-SDB firms in the Department of
Commerce designated NAICS Major
Groups, or is otherwise inappropriate.
[62 FR 36707, July 9, 1997, as amended at 64
FR 25215, May 11, 1999; 65 FR 38777, June 22,
2000; 65 FR 58932, Oct. 3, 2000; 67 FR 53547 Oct.
23, 2001]

1819.302 Protesting a small business
representation. (NASA supplements
paragraph (d))
(d)(1) The contracting officer shall
not make awards of small business setaside acquisitions before the expiration
of the period for receipt of a size standard protest.

Subpart 1819.5—Set-Asides for
Small Business
1819.502

Setting aside acquisitions.

1819.502–70 Non-initiation
of
setasides.
(a) All cases involving the non-initiation of a set-aside, whether resulting
from a joint decision of the small business specialist and the contracting officer or a decision by the contracting officer alone, require referral to the SBA
representative (if one is assigned and
available) for review.
(b) If the small business specialist
recommends that an individual acquisition or a class of acquisition, or a
portion thereof, be set aside, the contracting officer shall promptly either
concur in or disapprove the recommendation, stating in writing the
reasons for disapproval.
(c) When an SBA representative is assigned and available and the contracting officer disapproves the small
business specialist’s recommendation,
the contracting officer shall promptly
refer the case to the SBA representative for review. The small business specialist shall take no further appeal action. The SBA representative must either concur with the decision or appeal
the case to the procurement officer
under FAR 19.505. If the procurement
officer approves the contracting officer’s decision and the SBA appeals
under FAR 19.505(c), the procurement
officer shall forward the required written justification, including a history of
discussions between the center and the
SBA and rationale for the decision, to

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National Aeronautics and Space Administration

1819.602–370

the Headquarters Office of Procurement (HS).
(d) When an SBA representative is
not assigned or available and the contracting officer disapproves the small
business specialist’s recommendation,
the small business specialist may appeal in writing to the procurement officer. The procurement officer’s decision
shall be final. The contracting officer
shall place a memorandum of the procurement officer’s decision in the contract file. If the procurement officer’s
decision approves the contracting officer’s action, the small business specialist shall forward complete documentation of the case to the Headquarters Office of Small and Disadvantaged Business Utilization (Code K).
(e) The contracting officer shall prepare, sign, and retain in the contract
file a memorandum of nonconcurrence
in a recommended set-aside action.

Subpart 1819.6—Certificates of
Competency and Determinations of Responsibility

§ 1819.502–3

1819.602–3 Resolving differences between the agency and the Small
Business Administration.

Partial set-asides.

§ 1819.502–370 NASA
quirements.

reporting

re-

The contracting officer shall separately report, in accordance with Subpart 1804.6, awards of the non-set-aside
portions of small business set-aside acquisitions.
1819.505 Rejecting Small Business Administration recommendations.
See 1819.502–70.
1819.506 Withdrawing or modifying
small business set-asides. (NASA
supplements paragraph (b))
(b) If an SBA representative is not
assigned or available, and the small
business specialist disagrees with the
contracting officer’s written decision
of withdrawal or modification of a setaside determination, the small business
specialist may appeal to the procurement officer in accordance with the
procedures in 1819.502–70(d).

1819.602

Procedures.

1819.602–1 Referral. (NASA
ments paragraph (a))

(a) On proposed awards exceeding the
simplified acquisition threshold, the
contracting officer should consider requesting a preaward survey (see FAR
9.106) before determining that a responsive small business firm is not responsible. The scope of the preaward survey
request should be limited to those elements of responsibility that are questioned.
(2) The contracting officer shall forward a copy of the referral to SBA
through the procurement officer to the
Headquarters Office of Small and Disadvantaged Business Utilization (Code
K).

1819.602–370

NASA procedures.

(a) When agreement cannot be
reached between the contracting officer and the SBA Area Office, the contracting officer shall forward to the
Headquarters Office of Procurement
(Code HS) on an expedited basis, a complete case file with a request that the
case be considered for appeal to SBA
Headquarters. The contracting officer
shall include the data already furnished to SBA, SBA’s rationale for proposing to issue a COC, and the contracting officer’s comments. The contracting officer shall suspend acquisition action until informed by Code HS
of the final decision in the case.
(b) If the Office of Procurement concludes that the referral to SBA should
be withdrawn and a contract awarded
without benefit of a COC, Code HS
shall inform the contracting officer.
(c) If the Office of Procurement
agrees with the contracting officer’s

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1819.705–2

48 CFR Ch. 18 (10–1–02 Edition)

recommended appeal action, the Assistant Administrator for Procurement
shall forward the appeal through the
Office of Small and Disadvantaged
Business Utilization (Code K) to SBA
Headquarters.

Subpart 1819.7—The Small
Business Subcontracting Program

the

(b)(1) The contracting officer shall
use the clause at FAR 52.219–9 with its
Alternate II when contracting by negotiation.
1819.708–70 NASA solicitation
sion and contract clause.

1819.705–2 Determining the need for a
subcontracting plan. (NASA supplements paragraph (d))
(d) Solicitations for competitive negotiated acquisitions shall require proposed subcontracting plans with initial
proposals (see 1819.708(b)(1)). For sole
source negotiated acquisitions, the
contractor shall be required to submit
a proposed subcontracting plan with
the proposal.
1819.705–4 Reviewing
tracting plan.

1819.708 Contract clauses. (NASA supplements paragraph (b))

subcon-

1819.705–470 Acquisition-specific subcontracting goals.
Section 1819.201 addresses Agencywide goals at the combined prime and
subcontract levels. Appropriate subcontracting goals for an individual acquisition, however, are to be independently determined on the basis of the
specific circumstances of the acquisition, consistent with FAR 19.705–4 and
1819.7002(b), and not on the basis of an
Agencywide or center goal. Acquisition-specific
subcontracting
goals
should reflect maximum practicable
opportunities for all categories of
small business concerns to participate
in NASA programs, consistent with efficient performance. The methods outlined in NASA Policy Directive (NPD)
5000.2, Uniform Methodology for Determination of Small Disadvantaged Subcontracting Goals, may also be useful
in establishing reasonable subcontracting goals for small, veteran-owned
small business, service-disabled veteran-owned small business, HUBZone,
and women-owned small business concerns.
[62 FR 36707, July 9, 1997, as amended at 64
FR 25215, May 11, 1999; 66 FR 53547, Oct. 23,
2001]

(a) The contracting officer shall insert the provision at 1852.219–73, Small
Business Subcontracting Plan, in invitations for bids containing the clause
at FAR 52.219–9 with its Alternate I. Insert in the last sentence the number of
calendar days after request that the offeror must submit a complete plan.
(b) The contracting officer shall insert the clause at 1852.21975, Small
Business Subcontracting Reporting, in
solicitations and contracts containing
the clause at FAR 52.219–9, except for
contracts covered by an approved commercial plan.
[64 FR 25215, May 11, 1999]

Subpart 1819.8—Contracting With
the Small Business Administration (the 8(a) Program)
1819.804 Evaluation, offering, and acceptance.
1819.804–1

Agency evaluation.

The small business specialist shall
review and evaluate all acquisition requirements to determine their suitability for offering to SBA for 8(a) acceptance and make a recommendation
to the contracting officer concerning
award to SBA.

Subpart 1819.10—Small Business
Competitiveness Demonstration Program
1819.1005

Applicability.

(b) The targeted industry categories
for NASA and their North American
Industry
Classification
System
(NAICS) codes are:

NAICS code

Industry category

334111 ..............................

Electronic Computer Manufacturing.

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National Aeronautics and Space Administration

1819.7103

NAICS code

Industry category

334418 ..............................
334613 ..............................
334119 ..............................
33422 ................................
336415 ..............................
336419 ..............................
334511 ..............................

Printed Circuit Assembly (Electronic Assembly) Manufacturing.
Magnetic and Optical Recording Media Manufacturing.
Other Computer Peripheral Equipment Manufacturing.
Radio and Television Broadcasting and Wireless Communication Equipment Manufacturing.
Guided Missile and Space Vehicle Propulsion Unit and Propulsion Unit Parts Manufacturing.
Other Guided Missile and Space Vehicle Parts and Auxiliary Equipment Manufacturing.
Search, Detection, Navigation, Guidance, Aeronautical, and Nautical Systems and Instrument Manufacturing.
Optical Instrument and Lens Manufacturing.
Custom Computer Programming Services.
Computer Systems Design Services.
Data Processing Services.
Other Computer Related Services.

333314 ..............................
541511 ..............................
541512 ..............................
51421 ................................
541519 ..............................

[65 FR 58932, Oct. 3, 2000, as amended at 67 FR 50824, Aug. 6, 2002]

Subpart 1819.70—NASA 8 Percent
Goal
1819.7000 General.
Public Laws 101–144, 101–507, and 102–
389 require the NASA Administrator to
ensure, to the fullest extent possible,
that at least 8% of Federal funding for
prime and subcontracts awarded in
support of authorized programs, including the space station by the time operational status is obtained, be made
available to small disadvantaged business concerns, Historically Black Colleges and Universities, minority institutions, and women-owned small business concerns.
1819.7002 Contracting officer responsibility.
(a) Contracting officers must seek
out as potential sources entities identified in 1819.7001 and give full consideration to these entities to satisfy NASA
requirements. The participation of
NASA prime contractors is also essential to meeting the Agency’s 8 percent
goal.
(b) NASA Policy Directive (NPD)
5000.2, Uniform Methodology for Determination of Small Disadvantaged Subcontracting Goals, contains guidance
on developing realistic goals. It is applicable to acquisitions expected to exceed $50 million, including options. The
methodology may be used for lesser
value acquisitions.
1819.7003 Contract clause.
The contracting officer shall insert
the clause at 1852.219–76, NASA 8 Percent Goal, in all solicitations and contracts other than those below the sim-

plified acquisition threshold or when
the contract, together with all its subcontracts, is to be performed entirely
outside of any State, territory, or possession of the United States, the District of Columbia, the Commonwealth
of Puerto Rico, and the Trust Territory
of the Pacific Islands.

Subpart 1819.71—NASA Rural
Area Small Business Plan
1819.7101 Definition.
Rural area means a county with a
population of fewer than twenty thousand individuals.
1819.7102 General.
Pursuant to Public Law 100–590,
NASA established a Rural Area Business Enterprise Development Plan, including methods for encouraging prime
and subcontractors to use small business concerns located in rural areas as
subcontractors and suppliers. One
method is to encourage the contractor
to use its best efforts to comply with
the intent of the statute.
1819.7103 Solicitation provision and
contract clause.
The contracting officer shall insert
the clause at 1852.219–74, Use of Rural
Area Small Businesses, in solicitations
and contracts that offer subcontracting
possibilities or that are expected to exceed $500,000 ($1,000,000 for construction
of public facility) unless the contract,
together with all its subcontracts, is to
be performed entirely outside of any
State, territory, or possession of the
United States, the District of Columbia, the Commonwealth of Puerto Rico,

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§ 1819.7201

48 CFR Ch. 18 (10–1–02 Edition)

and the Trust Territory of the Pacific
Islands.

Subpart 1819.72—NASA Mentor´ ge
´ Program
Prote
§ 1819.7201

Scope of subpart.

The NASA Mentor-Prote´ ge´ Program
is designed to incentivize NASA prime
contractors to assist small disadvantaged business (SDB) concerns, Historically Black Colleges and Universities
(HBCUs), minority institutions (MIs),
and women-owned small business
(WOSB) concerns, in enhancing their
capabilities to perform NASA contracts and subcontracts, foster the establishment of long-term business relationships between these entities and
NASA prime contractors, and increase
the overall number of these entities
that receive NASA contract and subcontract awards.
[64 FR 10571, Mar. 5, 1999]

1819.7202

Definitions.

High-Tech is defined in 1819.001.
1819.7203

Non-affiliation.

For purposes of the Small Business
Act, a prote´ ge´ firm may not be considered an affiliate of a mentor firm solely on the basis that the prote´ ge´ firm is
receiving developmental assistance referred to in 1819.7214 from such mentor
firm under the Program. In addition,
NASA shall not consider partial ownership, up to 10 percent, of a Department
of Defense (DOD)-sanctioned prote´ ge´
firm by its DOD mentor to constitute
affiliation.
1819.7204 Transportability of features
from the Department of Defense
(DOD) Mentor-Prote´ ge´ program to
NASA contractors.
(a) In accordance with the benefits
authorized by the DOD Mentor-Prote´ ge´
Program (Public Law 101–510, Section
831, as amended by Public Law 102–190,
Section 814), a NASA contractor who is
also an approved DOD mentor can
transfer credit features to their NASA
contracts.
(b) NASA prime contractors, who are
approved DOD mentors, can award subcontracts noncompetitively under their
NASA contracts to the prote´ ge´ s which

they are assisting under the DOD Program (Public Law 101–510, Section
831(f)(2)).
(c) NASA prime contractors may
count the costs of developmental assistance provided of prote´ ge´ s being assisted under the DOD Program toward
meeting the goals in their subcontracting plans under their NASA prime
contracts (Public Law 102–190, Section
814). Limitations which may reduce the
value of this benefit include:
(1) Credit toward attaining subcontracting goals is available only to the
extent that the developmental assistance costs have not been reimbursed to
the contractor by DOD as direct or indirect costs; or
(2) The credit is available to meet the
goals of a NASA subcontracting plan
only to the extent that it has not been
applied to a DOD subcontracting plan.
The same unreimbursed developmental
assistance costs cannot be counted toward meeting the subcontracting goals
of more than one prime contract. These
costs would accrue from credit for the
multiples attributed to assistance provided by Small Business Development
Centers, Historically Black Colleges
and Universities and minority institutions.
(d) The features identified in paragraphs (a), (b) and (c) of this section
point out the portability of features
from the DOD Mentor-Prote´ ge´ Program to NASA prime contractors.
NASA mentors will be held to show
‘‘good faith’’ by providing actual developmental assistance beyond transferring credit from activity in the DOD
Program to NASA subcontracting
plans.
1819.7205 General policy.
(a) Eligible large business prime contractors, not included on the ‘‘List of
Parties Excluded from Federal Procurement and Nonprocurement Programs’’, who have at least one active
subcontracting plan, and who are approved as mentor firms may enter into
agreements with eligible entities (as
defined in 1819.7209) as prote´ ge´ s to provide appropriate developmental assistance to enhance the capabilities of
prote´ ge´ s to perform as subcontractors
and suppliers. Eligible small business
prime contractors, not included on the

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National Aeronautics and Space Administration
‘‘List of Parties Excluded from Federal
Procurement and Nonprocurement Programs’’, and that are capable of providing developmental assistance to
prote´ ge´ s, may also be approved as mentors. An active mentor-prote´ ge´ arrangement requires the prote´ ge´ to be a
subcontractor under the mentor’s
prime contract with NASA.
(b) The Mentor-Prote´ ge´ program may
be used in cost reimbursement type
contracts and contracts that include
an award fee incentive. Costs incurred
by a mentor to provide the developmental assistance described in 1819.7214
are allowable. Except for cost-plusaward-fee contracts, such proposed
costs shall not be included in the cost
base used to develop a fee objective or
to negotiate fee. On contracts with an
award fee incentive, a contractor’s
Mentor-Prote´ ge´ efforts shall be evaluated under the award fee evaluations.
[62 FR 36707, July 9, 1997, as amended at 64
FR 10571, Mar. 5, 1999]

§ 1819.7206 Incentives for prime contractor participation.
(a) Proposed mentor-prote´ ge´ efforts,
except for the extent of participation
of prote´ ge´ s as subcontractors, shall be
evaluated under the Mission Suitability factor. The participation of
SDB prote´ ge´ s as subcontractors shall
be evaluated separately as a Mission
Suitability
subfactor
(see
FAR
15.304(c)(4) and 19.1202). The participation of other categories of prote´ ge´ s as
subcontractors may be evaluated separately as part of the evaluation of proposed subcontracted efforts.
(b) Under contracts with award fee
incentives, approved mentor firms
shall be eligible to earn award fee associated with their performance as a
mentor by performance evaluation period. For purposes of earning award fee,
the mentor firm’s performance shall be
evaluated against the criteria described in the clause at 1852.219–79,
Mentor Requirements and Evaluation.
This award fee evaluation shall not include assessment of the contractor’s
achievement of FAR 52.219–9 subcontracting plan SDB goals or proposed

1819.7208

monetary targets for SDB
tracting (see FAR 19.1203).

subcon-

[64 FR 10571, Mar. 5, 1999, as amended at 65
FR 30013, May 10, 2000; 65 FR 46628, July 31,
2000]

1819.7207 Measurement
success.

of

Program

The overall success of the NASA
Mentor-Prote´ ge´
Program
encompassing all participating mentors and
prote´ ge´ s will be measured by the extent to which it results in:
(a) An increase in the number, dollar
value and percentage of subcontractors
awarded to prote´ ge´ s by mentor firms
under NASA contracts since the date of
entry into the Program;
(b) An increase in the number and
dollar value of contract and subcontract awards to prote´ ge´ firms since
the time of their entry into the Program (under NASA contracts, contracts awarded by other Federal agencies and under commercial contracts);
(c) An increase in the number and
dollar value of subcontracts awarded to
a prote´ ge´ firm by its mentor firm; and
(d) An increase in subcontracting
with prote´ ge´ firms in industry categories where they have not traditionally participating within the mentor
firm’s activity.
1819.7208

Mentor firms.

(a) Eligibility:
(1) Contractors eligible for receipt of
government contracts;
(2) Large prime contractors performing under contracts with at least
one negotiated subcontracting plan as
required by FAR 19.7; and
(3) Small business prime contractors
that can provide developmental assistance to enhance the capabilities of
prote´ ge´ s to perform as subcontractors
and suppliers.
(b) Mentors will be encouraged to
identify and select as prote´ ge´ s:
(1) A broad base of firms including
those defined as emerging firms (e.g., a
prote´ ge´ whose size is no greater than 50
percent of the size standard applicable
to the NAICS code assigned to a contracting opportunity);
(2) Firms in addition to those with
whom they have established business
relationships; and

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1819.7209

48 CFR Ch. 18 (10–1–02 Edition)

(3) High-tech firms.
[62 FR 36707, July 9, 1997, as amended at 65
FR 58932, Oct. 3, 2000]

1819.7209

[62 FR 36707, July 9, 1997, as amended at 64
FR 10572, Mar. 5, 1999]

Prote´ ge´ firms.

(a) For selection as a prote´ ge´ , a firm
must be:
(1) An SDB in the NAICS Major
Groups as determined by the Department of Commerce (see FAR 19.201(b)),
HBCU, MI, or WOSB;
(2) Certified as small in the NAICS
code for the services or suppliers to be
provided by the prote´ ge´ under its subcontract to the mentor; and
(3) Eligible for receipt of government
contracts.
(b) Except for SDBs, a prote´ ge´ firm
may self-certify to a mentor firm that
it meets the requirements set forth in
paragraph (a) of this section. Mentors
may rely in good faith on written representations by potential prote´ ge´ s that
they meet the specified eligibility requirements. SDB status eligibility and
documentation requirements are determined according to FAR 19.304.
(c) Prote´ ge´ s may have multiple mentors. Prote´ ge´ s participating in mentorprote´ ge´ programs in addition to the
NASA Program should maintain a system for preparing separate reports of
mentoring activity for each agency’s
program.
[62 FR 36707, July 9, 1997, as amended at 64
FR 10571, Mar. 5, 1999; 65 FR 58932, Oct. 3,
2000]

1819.7210

ness Utilization (OSDBU) (Code K) of
the protest.

Selection of prote´ ge´ firms.

(a) Mentor firms will be solely responsible for selecting prote´ ge´ firms.
The mentor is encouraged to identify
and select the types of prote´ ge´ firms
listed in 1819.7208(b).
(b) Mentor firms may have more than
one prote´ ge´ .
(c) The selection of prote´ ge´ firms by
mentor firms may not be protested, except for a protest regarding the size or
eligibility status of an entity selected
by a mentor to be a prote´ ge´ . Such protests shall be handled in accordance
with FAR 19.703(b). The contracting officer shall notify the Headquarters Office of Small and Disadvantaged Busi-

1819.7211 Application process for mentor firms to participate in the Program.
(a) Prime contractors interested in
becoming a mentor firm must submit a
request to the NASA OSDBU to be approved under the Program. The application will be evaluated on the extent
to which the company plans to provide
developmental assistance. The information required in paragraph (b) of
this section must be submitted to be
considered for approval as a mentor
firm.
(b) A proposed mentor must submit
the following information to the NASA
OSDBU:
(1) A statement that the mentor firm
is currently performing under at least
one active approved subcontracting
plan (small business exempted) and
that they are eligible, as of the date of
application, for the award of Federal
contracts;
(2) The cognizant NASA contract
number(s), type of contract, period of
performance (including options), title
of technical program effort, name of
NASA Program Manager (including
contact information) and name of the
NASA field center where support is
provided;
(3) The number of proposed mentorprote´ ge´ arrangements;
(4) Data on all current NASA contracts and subcontracts to include the
contract/subcontract number(s), period
of performance, awarding NASA installation or contractor and contract/subcontract value(s) including options;
(5) Data on total number and dollar
value of subcontracts awarded under
NASA prime contracts within the past
2 years and the number and dollar
value of such subcontracts awarded to
entities defined as prote´ ge´ s.
(6) Information on the proposed types
of developmental assistance. For each
proposed mentor-prote´ ge´ relationship
include information on the company’s
ability to provide developmental assistance to the identified prote´ ge´ firm

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National Aeronautics and Space Administration
and how that assistance will potentially increase subcontracting opportunities for the prote´ ge´ firm, including
subcontracting opportunities in industry categories where these entities are
not dominant in the company’s current
subcontractor base; and
(7) A Letter of Intent signed by both
parties. At a minimum, the Letter of
Intent must include the stated commitment that the parties intend to
enter into a mentor-prote´ ge´ agreement
under the NASA Program, that they
intend to cooperate in the establishment of a suitable developmental assistance program to meet their respective needs, and that they agree to comply with the obligations in 1819.7215
and all other provisions governing the
Program.
1819.7212 OSDBU review and approval
process of agreement.
(a) The information specified in
1819.7211(b) is reviewed by the NASA
OSDBU. This review will be completed
no later than 30 days after receipt by
the OSDBU. The OSDBU will provide a
copy of the submitted information to
the cognizant NASA technical program
manager and contracting officer for a
parallel review and concurrence.
(b) If OSDBU approves the application, then the mentor
(1) Negotiates an agreement with the
prote´ ge´ ; and
(2) Submits an original and two (2)
copies of the agreement to the OSDBU
for approval by the NASA Mentorprote´ ge´ program manager, the NASA
technical program manager, and the
contracting officer.
(c) Upon agreement approval, the
mentor may implement a developmental assistance program.
(d) An approved agreement will be incorporated into the mentor’s contract
with NASA. It should be added to the
subcontracting plan in contracts which
contain such a plan.
(e) If OSDBU disapproves the application, then the mentor may provide additional information for reconsideration. The review of any supplemental
material will be completed within 30
days after receipt by the OSDBU. Upon
finding deficiencies that NASA considers correctable, the OSDBU will notify the mentor and request informa-

1819.7214

tion to be provided within 30 days that
may correct the deficiencies.
1819.7213

Agreement contents.

The contents of the agreement must
contain:
(a) Names and addresses of mentor
and prote´ ge´ firms and a point of contact within both firms who will oversee
the agreement;
(b) Procedures for the mentor firm to
notify the prote´ ge´ firm, OSDBU, and
the contracting officer, in writing, at
least 30 days in advance of the mentor
firm’s intent to voluntarily withdraw
from the Program;
(c) Procedures for a prote´ ge´ firm to
notify the mentor firm in writing at
least 30 days in advance of the prote´ ge´
firm’s intent to voluntarily terminate
the mentor-prote´ ge´ agreement. The
mentor shall notify the OSDBU and the
contracting officer immediately upon
receipt of such notice from the prote´ ge´ ;
(d) A description of the type of developmental program that will be provided by the mentor firm to the
prote´ ge´ firm, to include a description
of the subcontract work, and a schedule for providing assistance and criteria for evaluation of the prote´ ge´ developmental success;
(e) A listing of the number and types
of subcontracts to be awarded to the
prote´ ge´ firm;
(f) Program participation term;
(g) Termination procedures;
(h) Plan for accomplishing work
should the agreement be terminated;
and
(i) Other terms and conditions, as appropriate.
1819.7214

Developmental assistance.

The forms of developmental assistance a mentor can provide to a prote´ ge´
include:
(a) Management guidance relating
to—
(1) Financial management,
(2) Organizational management,
(3) Overall business management/
planning, and
(4) Business development;
(b) Engineering and other technical
assistance;
(c) Noncompetitive award of subcontracts under NASA contracts;

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1819.7215

48 CFR Ch. 18 (10–1–02 Edition)

(d) Progress payments based on costs.
The customary progress payment rate
for all NASA contracts with small disadvantaged businesses is 95 percent.
This customary progress payment rate
for small disadvantaged businesses
may be used by prime contractors;
(e) Advance payments. While a mentor can make advance payments to its
prote´ ge´ s who are performing as subcontractors, the mentor will only be
reimbursed by NASA for these costs if
advance payments have been authorized in accordance with 1832.409–170;
(f) Loans;
(g) Rent-free use of facilities and/or
equipment; and
(h) Temporary assignment of personnel to the prote´ ge´ for purpose of
training.
[62 FR 36707, July 9, 1997, as amended at 64
FR 10572, Mar. 5, 1999]

1819.7215

Obligation.
(a) The mentor or prote´ ge´ may voluntarily withdraw from the Program as
mutually agreed by both mentor and
prote´ ge´ .
(b) Mentor and prote´ ge´ firms will
submit a ‘‘lessons learned’’ evaluation
to the NASA OSDBU at the conclusion
of each NASA contract subject to the
approved Mentor-Prote´ ge´ agreement.
[62 FR 36707, July 9, 1997, as amended at 64
FR 10572, Mar. 5, 1999]

1819.7216 Internal controls.
(a) The NASA OSDBU will manage
the Program. Internal controls will be
established by the OSDBU to achieve
the stated program objectives (by serving as checks and balances against
undesired actions or consequences)
such as:
(1) Reviewing and evaluating mentor
applications for realism, validity and
accuracy of provided information;
(2)
Reviewing
any
semi-annual
progress reports submitted by mentors
and prote´ ge´ s on prote´ ge´ development
to measure prote´ ge´ progress against
the master plan contained in the approved agreement.
(3) Site visits to NASA installation
where mentor-prote´ ge´ activity is occurring.
(b) NASA may terminate mentorprote´ ge´ agreements for good cause and

exclude mentor or prote´ ge´ firms from
participating in the NASA program.
These actions shall be approved by the
NASA OSDBU. NASA shall terminate
an agreement by delivering to the contractor a Notice specifying the reason
for termination and the effective date.
Termination of an agreement does not
constitute a termination of the subcontract between the mentor and the
prote´ ge´ . A plan for accomplishing the
subcontract effort should the agreement be terminated shall be submitted
with the agreement as required in NFS
1819.7213(h).
[62 FR 36707, July 9, 1997, as amended at 64
FR 10572, Mar. 5, 1999]

1819.7217

Reports.

(a) Semi-annual reports shall be submitted by the mentor to the NASA
Mentor-Prote´ ge´ program manager, the
NASA OSDBU, to include information
as outlined in 1852.219–79(b).
(b) Prote´ ge´ s are encouraged to submit semi-annual reports to the OSDBU
on Program progress pertaining to
their mentor-prote´ ge´ agreement. However, costs associated with the preparation of these reports are unallowable
costs under Government contracts and
will not be reimbursed by the Government.
(c) The NASA technical program
manager shall include an assessment of
the prime contractor’s (mentor’s) performance in the Mentor-Prote´ ge´ Program in a quarterly ‘Strengths and
Weaknesses’ evaluation report. A copy
of this assessment will be provided to
the OSDBU and the contracting officer.
(d) The NASA Mentor-Prote´ ge´ program manager will submit semi-annual
reports to the cognizant contracting
officer regarding the participating
prime contractor’s performance in the
Program for use in the award fee determination process.
[62 FR 36707, July 9, 1997, as amended at 64
FR 10572, Mar. 5, 1999]

1819.7218

Program review.

At the conclusion of each year in the
Mentor-Prote´ ge´ Program, the prime
contractor and prote´ ge´ , as appropriate,
will formally brief the NASA OSDBU,
the technical program manager, and

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National Aeronautics and Space Administration
the contracting officer regarding Program accomplishments pertaining to
the approved agreement. This review
will be incorporated into the normal
program review, where applicable. A
separate review will be scheduled for
other contracts to be held at the NASA
work site location.
1819.7219 Solicitation
contract clauses.

provision

and

(a) The contracting officer shall insert the clause at 1852.219–77, NASA
Mentor-Prote´ ge´ Program, in:
(1) Cost reimbursement solicitations
and contracts, or solicitations and contracts with award fee incentives, that
include the clause at FAR 52.219–9,
Small Business Subcontracting Plan;
(2) Small business set-asides of the
contract types in (a)(1) of this section
with
values
exceeding
$500,000
($1,000,000 for construction) that offer
subcontracting opportunities.
(b) The contracting officer shall insert the clause at 1852.219–79, Mentor
Requirements and Evaluation, in contracts where the prime contractor is a
participant in the NASA MentorProte´ ge´ Program.
[62 FR 36707, July 9, 1997, as amended at 64
FR 10572, Mar. 5, 1999]

PART
1822—APPLICATION
OF
LABOR LAWS TO GOVERNMENT
ACQUISITIONS
Sec.
1822.000–70

Pt. 1822

Subpart 1822.4—Labor Standards for
Contracts Involving Construction
1822.400–70 Contacts with the Department of
Labor.
1822.404–3 Procedures for requesting wage
determinations.
1822.406–8 Investigations.
1822.406–9 Withholding from or suspension
of contract payments.
1822.406–13 Semiannual
enforcement
reports.

Subpart 1822.6—Walsh-Healey Public
Contracts Act
1822.604 Exemptions.
1822.604–2 Regulatory exemptions.

Subpart 1822.8—Equal Employment
Opportunity
1822.804 Affirmative action programs.
1822.804–2 Construction.
1822.807 Exemptions.
1822.810 Solicitation provisions and
tract clauses.

con-

Subpart 1822.10—Service Contract Act of
1965
1822.1001 Definitions.
1822.1008 Procedures for preparing and submitting Notice (SF 98/98a).
1822.1008–7 Required time of submission of
notice.
1822.1008–270 Additional information for the
preparation of SF 98/98a.

Subpart 1822.13—Special Disabled Veterans, Veterans of the Vietnam ERA,
and Other Eligible Veterans
1822.1305
1822.1308

Scope of part.

Waivers.
Complaint procedures.

Subpart 1822.14—Employment of Workers
with Disabilities

Subpart 1822.1—Basic Labor Policies
1822.101 Labor relations.
1822.101–1 General.
1822.101–3 Reporting labor disputes.
1822.101–4 Removal of items from contractors’ facilities affected by work stoppages.
1822.101–70 Admission of labor representatives to contract sites.
1822.103 Overtime.
1822.103–4 Approvals.
1822.103–5 Contract clauses.

1822.1403 Waivers.
1822.1406 Complaint procedures.

Subpart 1822.15—Prohibition of Acquisition
of Products Produced by Forced or Indentured Child Labor
1822.1503 Procedures for acquiring end products on the List of Products Requiring
Contractor Certification as to Forced or
Indentured Child Labor. (NASA supplements paragraph (e))
AUTHORITY: 42 U.S.C. 2473(c)(1).

Subpart 1822.3—Contract Work Hours and
Safety Standards Act

SOURCE: 61 FR 55755, Oct. 29, 1996, unless
otherwise noted.

1822.302 Liquidated damages and overtime
pay.

EDITORIAL NOTE: Nomenclature changes to
part 1822 appear at 66 FR 53547, Oct. 23, 2001.

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1822.000–70

48 CFR Ch. 18 (10–1–02 Edition)

1822.000–70 Scope of part.
(a) Contracting officers shall consult
with the installation labor relations
advisor or designee when taking any of
the actions prescribed or authorized in
FAR part 22 or part 1822.
(b) Proposed actions having a substantial impact on the activities of
NASA or other Government agencies
shall be approved by the Headquarters
Contractor Industrial Relations Office
(Code JR).

Subpart 1822.1—Basic Labor
Policies
1822.101

Labor relations.

1822.101–1 General.
(NASA
supplements paragraph (d))
(d) When a strike that may have an
adverse effect on NASA programs is
imminent or in progress at a prime
contractor’s or subcontractor’s plant,
contracting officers shall:
(i) Advise both the prime contractor
and the head of the union local in writing of the expected impact of the strike
on NASA programs and of the actions
NASA is considering to protect the
Government’s interest and prevent
delay in the accomplishment of
NASA’s mission. If the strike is in a
subcontractor’s plant, the subcontractor may be approached only
through the prime contractor;
(ii) Explore the possibility of locating other sources for the supplies or
services to have been provided by the
strike-threatened plant; and
(iii) Consider taking the actions described in FAR 22.101–4.
(e) Programs or requirements that
result in contracts in excess of the simplified acquisition threshold shall require contractors to notify NASA of
actual or potential labor disputes that
are delaying or threaten to delay timely contract performance.
[61 FR 55755, Oct. 29, 1996, as amended at 64
FR 14148, Mar. 24, 1999]

1822.101–3 Reporting labor disputes.
Reports of potential or actual labor
disputes affecting NASA acquisitions,
operations, or services shall be submitted to the Headquarters Contractor
Industrial Relations Office (Code JR).

These reports shall be made as early as
possible and shall include immediately
available information. Supplemental
reports shall be made to provide appropriate additional information. Reports
shall described at a minimum:
(1) The nature of the potential or actual dispute, including whether a
strike, lockout, slow-down, shut-down,
or picketing is involved and the degree
of emergency presented;
(2) The character, quantity, and importance of the supplies, operations, or
services involved, including scheduled
performance and delivery dates and
their relationship to the total acquisition program;
(3) The identity and location of the
parties to the dispute and their representatives, including the approximate number of employees involved;
(4) The need for and availability of
alternative resources to furnish the
items involved within the time required;
(5) Any critical items that should be
removed from the plant or work site or
should continue to be processed there
with the consent of the parties to the
dispute; and
(6) Recommended action to be taken
by NASA.
1822.101–4 Removal of items from contractors’ facilities affected by work
stoppages.
(NASA
supplements
paragraph (a))
(a) (3) The contracting officer shall
obtain approval from Code JR for any
contemplated action.
1822.101–70 Admission of labor representatives to contract sites.
NASA activities may not prevent the
access of labor union representatives to
contract sites for the conduct of union
business if their activities are compatible with safety and security regulations and performance of the contract
work involved.
1822.103

Overtime.

1822.103–4 Approvals. (NASA supplements paragraph (a))
(a) The contracting officer is authorized to approve overtime premiums at
Government expense. If two or more
contracting offices have current contracts at a single facility and approval

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National Aeronautics and Space Administration
of overtime by one will affect the performance or cost of contracts of another, the approving official shall obtain the concurrence of other appropriate approving officials and seek
agreement as to the contracts under
which premiums will be approved. In
the absence of evidence to the contrary, a contracting officer may rely
on the contractor’s statement that approval will not affect performance or
payments under any contract of another contracting office.
1822.103–5 Contract clauses.
supplements paragraph (a))

(NASA

1822.604–2

Relations Office—GSFC, Code 201,
Greenbelt, Maryland 20771 (GSFC).
[63 FR 32763, June 16, 1998]

1822.404–3 Procedures for requesting
wage determinations.
Contracting officers shall submit requests for project wage determinations
to GSFC at least 55 days (70 days if possible) before issuing the solicitation.
[61 FR 55755, Oct. 29, 1996, as amended at 63
FR 32763, June 16, 1998]

1822.406–8 Investigations. (NASA supplements paragraphs (a) and (d))
(a) The contracting officer is responsible for conducting investigations of
labor violations relative to contracts
under their cognizance.
(d) Reports of violations shall be sent
to Code JR.

(a) See 1822.101–1(e).
[64 FR 14149, Mar. 24, 1999]

Subpart 1822.3—Contract Work
Hours and Safety Standards Act
1822.302 Liquidated
damages
and
overtime pay. (NASA supplements
paragraphs (c) and (d))
(c) The Director of the Headquarters
Contractor Industrial Relations Office
(Code JR) is the agency head designee.
(d) Disposal of funds withheld or collected for liquidated damages shall be
in accordance with direction of the Director of Code JR.

Subpart 1822.4—Labor Standards
for Contracts Involving Construction

[61 FR 55755, Oct. 29, 1996, as amended at 63
FR 32763, June 16, 1998]

1822.406–9 Withholding from or suspension of contract payments.
(NASA supplements paragraph (c))
(c)(4) Code JR shall determine the
disposal of funds.
1822.406–13 Semiannual enforcement
reports.
Procurement officers shall submit
semiannual enforcement data within 20
days after the end of the specified reporting periods to the Headquarters Office of Procurement (Code HK). Negative statements are required.

1822.400–70 Contacts with the Department of Labor.
All contacts with the Department of
Labor required by FAR subpart 22.4, except for wage determinations, shall be
conducted through the Headquarters
Contractor Industrial Relations Office
(Code JR). Contracting officers shall
submit all pertinent information to
Code JR in support of Code JR for contacts. For wage determinations, contracting officers shall submit all requests directly to Goddard Space
Flight Center, Contractor Industrial

Subpart 1822.6—Walsh-Healey
Public Contracts Act
1822.604

Exemptions.

1822.604–2 Regulatory
exemptions.
(NASA supplements paragraph (c))
(b) Requests for exemptions shall be
submitted in writing through the contracting officer to the Headquarters
Contractor Industrial Relations Office
(Code JR).
[61 FR 55755, Oct. 29, 1996, as amended at 62
FR 36713, July 9, 1997]

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1822.804

48 CFR Ch. 18 (10–1–02 Edition)

Subpart 1822.8—Equal
Employment Opportunity
1822.804

Affirmative action programs.

1822.804–2 Construction. (NASA supplements paragraph (b))
(b) The Headquarters Office of Procurement (Code HK) will furnish each
procurement officer the listing.
1822.807

Exemptions.

Requests for exemption pursuant to
FAR 22.807(a)(1), (a)(2), or (b)(5) shall be
sent to the Headquarters Office of Procurement (Code HS).
1822.810 Solicitation provisions and
contract clauses. (NASA supplements paragraph (e))
(e) If an offeror completes a negative
representation under FAR 52.222–22, the
contracting officer shall obtain the information required by FAR 52.222–
26(b)(7) within 30 days of contract
award. The information shall be held in
confidence as privileged information in
accordance with 32 CFR 286.6(b)(4).

Subpart 1822.10—Service
Contract Act of 1965
1822.1001

Definitions.

Agency labor advisor is the Director of
the Headquarters Contractor Industrial
Relations Office (Code JR). All contacts with other agencies required by
FAR subpart 22.10 shall be conducted
through Code JR. Contracting officers
shall submit all pertinent information
to Code JR in support of the required
contacts.
1822.1008 Procedures for preparing
and submitting Notice (SF 98/98a).
1822.1008–7 Required time of submission of notice.
(a) Contracting officers shall submit
the notices to Goddard Space Flight
Center, Contract Industrial Relations
Office—GSFC, Code 201, Greenbelt,
Maryland 20771 (GSFC) at least 70 days
before initiating the associated contract actions.
(b) When the circumstances in FAR
22.1008–7(b) apply, contracting officers
shall submit the required notices to

GSFC at least 40 days before initiating
the associated contract actions.
(c) Contracting officers shall contact
GSFC before initiating any action
when the circumstances in FAR
22.1008–7(c) and (d) apply.
[63 FR 32763, June 16, 1998]

1822.1008–270 Additional information
for the preparation of SF 98/98a.
The information listed in this section
by item number shall be furnished, in
addition to that required by the SF 98/
98a:
(a) Item 6. Insert on the far left side
of the block the code identifying the
type of proposed action:
Code
I
II
III
IV
V

Proposed action
New contract (use only when services are not
presently being performed).
Recompetition of services.
Contract modifications affecting the scope of
the work.
Extension of contract performance through exercise of an option or otherwise.
Other. When a multiple year contract (funding
is not subject to annual appropriation) is to
be entered into, specify ‘‘multiple year R&D
funded’’ on the SF 98.

(b) Item 8. (1) If the proposed contract will be awarded under Section
8(a) of the Small Business Act, insert
both the Small Business Administration and the name of the subcontractor.
(2) If no wage determination is available for the particular contract, insert
‘‘None’’ in Item 8.b.
(c) Item 10. Add the solicitation number.
(d) Item 12. (1) When entering into a
new service contract, list all classes of
work expected to be performed under
the contract under this item, regardless of whether the class of employees
is considered professional, executive,
administrative, or hourly. However, if
submission of the SF 98/98a is in connection with any action other than a
new contract (Code I in paragraph (a)
of this subsection), list only the classes
of work that the incumbent indicates
are ‘‘nonexempt.’’
(2) When classifications include both
categories of employees covered by a
collective bargaining agreement and
those not represented by a union, mark
the classifications that are unionized
with an asterisk.

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National Aeronautics and Space Administration

Pt. 1823

(3) If the classification of work is not
known, use the most descriptive job
title available for the work to be performed under the contract.
(e) Item 13. If the number of employees is not known, the estimated hours
required to perform the tasks should be
indicated so that staffing estimates
can be determined and listed.
(f) Item 14. Include in this item the
wage rates that would be paid if the
employees were subject to 5 U.S.C. 5332
(GS grades).

Subpart 1822.15—Prohibition of
Acquisition of Products Produced by Forced or Indentured Child Labor

Subpart
1822.13—Special
Disabled Veterans, Veterans of
the Vietnam ERA, and Other
Eligible Veterans

[66 FR 41805, Aug. 9, 2001]

1822.1305

Waivers.

(c) Requests for waivers shall be submitted to the Assistant Administrator
for Equal Opportunity Programs (Code
E).
[67 FR 30603, May 7, 2002]

1822.1308

1822.1503 Procedures for acquiring
end products on the List of Products Requiring Contractor Certification as to Forced or Indentured
Child Labor. (NASA supplements
paragraph (e))
(e) All investigations under FAR
Subpart 22.15 shall be referred to
NASA’s Office of Inspector General.

PART 1823—ENVIRONMENT, ENERGY AND WATER EFFICIENCY,
RENEWABLE
ENERGY
TECHNOLOGIES,
OCCUPATIONAL
SAFETY, AND DRUG–FREE WORKPLACE
Sec.
1823.106 Delaying award.
1823.107 Compliance responsibilities.

Complaint procedures.

Contracting officers shall submit all
complaints to the Assistant Administrator for Equal Opportunity Programs
(Code E).

Subpart 1823.2—Energy and Water
Efficiency and Renewable Energy
1823.203

Energy-efficient products.

Subpart 1823.3—Hazardous Material
Identification and Material Safety Data

[67 FR 30603, May 7, 2002]

Subpart 1822.14—Employment of
Workers with Disabilities

1823.370 Acquisition of potentially hazardous items from or through another
Government agency.

1822.1403 Waivers. (NASA supplements
paragraph (c))

Subpart 1823.4—Use of Recovered
Materials

(c) Requests for waivers shall be submitted to the Assistant Administrator
for Equal Opportunity Programs (Code
E).
1822.1406

Complaint procedures.

Contracting officers shall submit all
complaints to the Assistant Administrator for Equal Opportunity Programs
(Code E).

1823.404 Agency
programs.

affirmative

procurement

Subpart 1823.5—Drug-Free Workplace
1823.570 Drug- and alcohol-free workforce.
1823.570–1 Scope.
1823.570–2 Definitions.
1823.570–3 Contract clause.
1823.570–4 Suspension of payments, termination of contract, and debarment and
suspension actions.

Subpart 1823.7—Contracting for Environmentally Preferable Products and
Services
1823.703

Policy.

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1823.203

48 CFR Ch. 18 (10–1–02 Edition)

Subpart 1823.70—Safety and Health
1823.7001 NASA solicitation provisions and
contract clauses.

Subpart 1823.71—Frequency Authorization
1823.7101
1823.7102

1823.570 Drug- and alcohol-free workforce.
1823.570–1

Contract clause.
Procedures.

AUTHORITY: 42 U.S.C. 2473(c)(1)
SOURCE: 61 FR 55757, Oct. 29, 1996, unless
otherwise noted.

Subpart
1823.2—Energy
and
Water Efficiency and Renewable Energy
1823.203

Subpart 1823.5—Drug-Free
Workplace

Energy-efficient products.

Responsibility, policy and procedures
for NASA’s implementation of FAR
23.203, including cost-effectiveness, are
described in NPG 8570.1, ‘‘Energy Efficiency and Water Conservation Technologies and Practices.’’
[67 FR 30603, May 7, 2002]

Subpart 1823.3—Hazardous Material Identification and Material
Safety Data
1823.370 Acquisition
of
potentially
hazardous items from or through
another Government agency.
When acquiring supplies or services
from or through another Government
agency (e.g., see FAR part 8 and FAR
subpart 17.5), NASA shall request that
agency to furnish NASA the data required by FAR subpart 23.3.

Subpart 1823.4—Use of Recovered
Materials
1823.404 Agency affirmative procurement programs.
NASA’s affirmative procurement program is described in the Affirmative
Procurement Plan for Environmentally
Preferable Products (NPG 8830.1)
[67 FR 30603, May 7, 2002]

Scope.

Sections 1823.570 through 1823.570–4
set forth NASA requirements for mandatory drug and alcohol testing of certain contractor personnel under section 203, National Aeronautics and
Space Act of 1958, as amended, 42
U.S.C. 2473, 72 Stat. 429; and Civil Space
Employee Testing Act of 1991, Public
Law 102–195, sec. 21, 105 Stat. 1616 to
1619.
1823.570–2

Definitions.

As used in this subpart employee and
controlled substance are as defined in
FAR 23.503. The use of a controlled substance in accordance with the terms of
a valid prescription, or other uses authorized by law shall not be subject to
the requirements of 1823.570 through
1823.570–4 and the clause at 1852.223–74.
Employee in a sensitive position means
a contractor or subcontractor employee who has been granted access to
classified information; a contractor or
subcontractor employee in other positions that the contractor or subcontractor determines could reasonably be
expected to affect safety, security, National security, or functions other than
the foregoing requiring a high degree of
trust and confidence; and includes any
employee performing in a position designated ‘‘mission critical’’ pursuant to
the clause at 1852.246–70. The term also
includes any applicant who is interviewed for a position described in this
paragraph.
Use, in violation of applicable law or
Federal regulation, of alcohol includes
having, while on duty or during a preemployment interview, an alcohol concentration of 0.04 percent by weight or
more in the blood, as measured by
chemical test of the individual’s breath
or blood. An individual’s refusal to submit to such test is presumptive evidence of use, in violation of applicable
law or Federal regulation, of alcohol.

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National Aeronautics and Space Administration
1823.570–3

1823.570–4 Suspension of payments,
termination of contract, and debarment and suspension actions.
The contracting officer shall comply
with the procedures of FAR 23.506 regarding the suspension of contract payments, the termination of the contract
for default, and debarment and suspension of a contractor relative to failure
to comply with the clause at 1852.223–
74. Causes for suspension of contract
payments, termination of the contract
for default, and debarment and suspension of the contractor are the following:
(a) The contractor fails to comply
with paragraph (b), (c), or (d) of the
clause at 1852.223–74; or
(b) Such a number of contractor employees in sensitive positions having
been convicted of violations of criminal drug statutes or substantial evidence of drug or alcohol abuse or misuse occurring in the workplace, as to
indicate that the contractor has failed
to make a good faith effort to provide
a drug- and alcohol-free workforce.

Subpart 1823.7—Contracting for
Environmentally
Preferable
Products and Services
1823.703

Subpart 1823.70—Safety and
Health

Contract clause.

The contracting officer shall insert
the clause at 1852.223–74, ‘‘Drug- and Alcohol-Free Workforce,’’ in all solicitations and contracts containing the
clause at 1852.246–70, ‘‘Mission Critical
Space Systems Personnel Reliability
Program,’’ and in other solicitations
and contracts exceeding $5 million in
which work is performed by an employee in a sensitive position. However,
the contracting officer shall not insert
the clause at 1852.223–74 in solicitations
and contracts for commercial items
(see FAR parts 2 and 12).

Policy.

Responsibility, policy and procedures
for NASA’s implementation of FAR
23.703 is described in NPG 8570.1, ‘‘Energy Efficiency and Water Conservation Technologies and Practices’’.
[67 FR 30603, May 7, 2002]

1823.7001

1823.7001 NASA solicitation provisions
and contract clauses.
(a) The clause at 1852.223–70, Safety
and Health, shall be included in all solicitations and contracts when one or
more of the following conditions exist:
(1) The work will be conducted completely or partly on premises owned or
controlled by the Government.
(2) The work includes construction,
alteration, or repair of facilities in excess of the simplified acquisition
threshold.
(3) The work, regardless of place of
performance, involves hazards that
could endanger the public, astronauts
and pilots, the NASA workforce (including contractor employees working
on NASA contracts), or high value
equipment or property, and the hazards
are not adequately addressed by Occupational Safety and Health Administration (OSHA) or Department of
Transportation (DOT) regulations (if
applicable).
(4) When the assessed risk and consequences of a failure to properly manage and control the hazard(s) warrants
use of the clause.
(b) The clause prescribed in paragraph (a) of this section may be excluded, regardless of place of performance, when the contracting officer,
with the approval of the installation
official(s) responsible for matters of
safety and occupational health, determines that the application of OSHA
and DOT regulations constitutes adequate safety and occupational health
protection.
(c) The contracting officer shall insert the provision at 1852.223–73, Safety
and Health Plan, in solicitations containing the provision at 1852.223–70.
This provision may be modified to
identify specific information that is to
be included in the plan. After receiving
the concurrence of the center safety
and occupational health official(s), the
contracting officer shall include the
plan in any resulting contract. Insert
the provision with its Alternate I, in
Invitations for Bid containing the
clause at 1852.223–70.
(d) The contracting officer shall insert the clause at 1852.223–75, Major

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1823.7101

48 CFR Ch. 18 (10–1–02 Edition)

Breach of Safety or Security, in all solicitations and contracts with estimated values of $500,000 or more, unless
waived at a level above the contracting
officer with the concurrence of the
project manager and the installation
official(s) responsible for matters of security, export control, safety, and occupational health. For other contracts,
use of the clause is optional.
(e) For all solicitations and contracts
exceeding the micro-purchase threshold that do not include the clause at
1852.223–70, Safety and Health, the contracting officer shall insert the clause
at 1852.223–72, Safety and Health (Short
Form).
[65 FR 37059, June 13, 2000, as amended at 65
FR 70316, Nov. 22, 2000; 66 FR 18052, Apr. 5,
2001; 66 FR 48361, Sept. 20, 2001; 67 FR 17016,
Apr. 9, 2002]

Subpart 1823.71—Frequency
Authorization
1823.7101

Contract clause.

The contracting officer shall insert
the clause at 1852.223–71, Frequency Authorization, in solicitations and contracts calling for developing, producing, constructing, testing, or operating a device for which a radio frequency authorization is required.
1823.7102

Procedures.

The contracting officer shall obtain
the necessary frequency authorization
and other procedural details from the
installation’s spectrum manager.

PART 1824—PROTECTION OF PRIVACY AND FREEDOM OF INFORMATION
Subpart 1824.1—Protection of Individual
Privacy
Sec.
1824.102

General.

1824.102

General.

(1) For NASA rules and regulations
implementing the Privacy Act, see Privacy—NASA Regulations, (14 CFR
1212). The Act applies to any contractor maintaining a system of
records to accomplish a NASA mission.
(2) Systems of records to which the
Privacy Act does not apply include—
(i) Records maintained by a contractor on individuals employed by the
contractor on its own behalf for the
purpose of providing supplies and services to the Federal Government; and
(ii) Records that—
(A) Are maintained under contracts
with educational institutions to provide training;
(B) Are generated on students working under the contract relative to their
attendance (admission forms, grade reports, etc.);
(C) Are similar to those maintained
on other students; and
(D) Are commingled with their
records on other students.

Subpart 1824.2—Freedom of
Information Act
1824.203 Policy. (NASA supplements
paragraphs (a) and (b))
(a) For NASA implementation of the
Freedom of Information Act, see Availability of Agency Records to Members
of the Public (14 CFR part 1206).
(b) When receiving any Freedom of
Information Act request from the public, the contracting officer shall immediately refer the request to the Freedom of Information Act Officer, NASA
Information Center, or other responsible point of contact as set forth in installation procedures.
[61 FR 55758, Oct. 29, 1996. Redesignated at 62
FR 36713, July 9, 1997]

Subpart 1824.2—Freedom of Information
Act
1824.203

Subpart 1824.1—Protection of
Individual Privacy

PART 1825 FOREIGN ACQUISITION

Policy.

AUTHORITY: 42 U.S.C. 2473(c)(1).
SOURCE: 61 FR 55758, Oct. 29, 1996, unless
otherwise noted.

Sec.
1825.003 Definitions.
1825.003–70 NASA definitions.

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National Aeronautics and Space Administration
Subpart 1825.1 Buy American Act—
Supplies
1825.103

Subpart 1825.1— Buy American
Act—Supplies

Exceptions.

1825.103

Subpart 1825.4 Trade Agreements
1825.400

Scope of subpart.

Subpart 1825.9 Customs and Duties
1825.901
1825.903

Policy.
Exempted supplies.

Subpart 1825.10 Additional Foreign
Acquisition Regulations
1825.1001 Waiver of right to examination of
records.
1825.1002 Use of foreign currency.

Subpart 1825.11 Solicitation Provisions and
Contract Clauses
1825.1101 Acquisition of supplies.
1825.1103 Other provisions and clauses.
1825.1103–70 Export control.

Subpart 1825.70 Foreign Contract and
International Agreement Clearances
1825.7000
1825.7001
1825.7002
1825.7003

1825.400

AUTHORITY: 42 U.S.C. 2473(c)(1).

Scope of subpart.

(b) The Buy American Act applies to
all acquisitions of Japanese end products or services in excess of $2,500.
[65 FR 10031, Feb. 25, 2000, as amended at 67
FR 50824, Aug. 6, 2002]

Definitions.

1825.003–70

Exceptions.

(a)(i) The procurement officer must
send proposed public interest determinations to the Assistant Administrator for Procurement (Code HS) for
approval.
(ii) The Assistant Administrator for
Procurement has determined that it is
inconsistent with the public interest to
apply restrictions of the Buy American
Act to Canadian end products with estimated values of $25,000 or less as defined in 1825.003–70. Accordingly, contracting officers must evaluate all offers for such Canadian end products on
a parity with offers for domestic end
products, except that applicable duty
(whether or not a duty free entry certificate may be issued) must be included in evaluating offers for Canadian end products.

Subpart 1825.4—Trade
Agreements

Scope of subpart.
Definition.
Foreign Contracts.
International Agreements.

SOURCE: 65 FR 10031, Feb. 25, 2000, unless
otherwise noted.

1825.003

1825.901

NASA definitions.

‘‘Canadian end product’’, for an item
with an estimated value of $25,000 or
less, means an unmanufactured end
product mined or produced in Canada
or an end product manufactured in
Canada, if the cost of its components
mined, produced, or manufactured in
Canada or the United States exceeds 50
percent of the cost of all its components. The cost of components includes
transportation costs to the place of incorporation into the end product. For
an end product with an estimated value
in excess of $25,000, the definition at
FAR 25.003 applies.

Subpart 1825.9—Customs and
Duties
1825.901

Policy.

NASA has statutory authority to exempt certain articles from import duties, including articles that will be
launched into space, spare parts for
such articles, ground support equipment, and unique equipment used in
connection with an international program or launch service agreement.
This authority is fully described in 14
CFR part 1217.

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1825.903

48 CFR Ch. 18 (10–1–02 Edition)

1825.903 Exempted supplies.
(a) Through delegation from the Assistant Administrator for Procurement, procurement officers are authorized to certify duty free entry for articles imported into the United States, if
those articles are procured by NASA or
by other U.S. Government agencies, or
by U.S. Government contractors or
subcontractors when title to the articles is or will be vested in the U.S.
Government in accordance with the
terms of the contract or subcontract.
Procurement officers shall complete
the certification set forth in 14 CFR
1217.104(a)
or
1217.104(c)
(http://
www.access.gpo.gov/nara/cfr/cfr-retrieve.html#page1). Upon arrival of foreign supplies at a port of entry, the
consignee, generally the commercial
carrier or its agent (import broker),
will file Customs Form 7501, Entry
Summary. This form is available from
Service
Ports
(http://
www.customs.ustreas.gov/location/
ports/index.htm) or from NASA Headquarters’
forms
library
(https://
extranet.hq.nasa.gov/nef/user/
form_search.cfm). All duty-free certificates must be coordinated with the
center Chief Counsel. Procurement officers must maintain a record of each
certification and make this record
available for periodic review by NASA
Headquarters and the U.S. Customs
Service.
[65 FR 45306, July 21, 2000]

Subpart 1825.10—Additional
Foreign Acquisition Regulations
1825.1001 Waiver of right to examination of records.
(b) The Administrator is the approval
authority for waivers. The contracting
officer must submit the waiver request,
consisting of the determination and
findings prescribed in FAR 25.1001(b)
and any relevant supporting information, to the Headquarters Office of Procurement (Code HS).
1825.1002 Use of foreign currency.
(a) The NASA Headquarters Comptroller (Code B) is the designated official for making the determination of
the feasibility of using excess or nearexcess currency.

Subpart 1825.11—Solicitation
Provisions and Contract Clauses
1825.1101

Acquisition of supplies.

(e) The contracting officer must add
paragraph (k) as set forth in 1852.225–8,
Duty-Free Entry of Space Articles, in
solicitations and contracts when the
supplies that will be accorded duty-free
entry are identifiable before award. Insert the supplies determined in accordance with FAR subpart 25.9 and
1825.903.
1825.1103 Other
clauses.
1825.1103–70

provisions

Export control.

(a) Background. (1) NASA contractors and subcontractors are subject to
U.S. export control laws and regulations, including the International Traffic in Arms Regulations (ITAR), 22 CFR
parts 120 through 130, and the Export
Administration Regulations (EAR), 15
CFR parts 730 through 799. The contractor is responsible for obtaining the
appropriate licenses or other approvals
from the Department of State or the
Department of Commerce when it exports hardware, technical data, or software, or provides technical assistance
to a foreign destination or ‘‘foreign
person’’, as defined in 22 CFR 120.16,
and there are no applicable or available
exemptions/exceptions to the ITAR/
EAR, respectively. A person who is
lawfully admitted for permanent residence in the United States is not a
‘‘foreign person’’. (See 22 CFR 120.16
and 15 CFR 734.2(b)(2)(ii))
(2) The exemption at 22 CFR
125.4(b)(3) of the ITAR provides that a
contractor may export technical data
without a license if the contract between the agency and the exporter provides for the export of the data. The
clause at 1852.225–70, Alternate I, provides contractual authority for the exemption, but the exemption is available only after the contracting officer,
or designated representative, provides
written authorization or direction enabling its use. It is NASA policy that
the exemption at 22 CFR 125.4(b)(3)
may only be used when technical data
(including software) is exchanged with
a NASA foreign partner pursuant to

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National Aeronautics and Space Administration
the terms of an international agreement in furtherance of an international collaborative effort. The contracting officer must obtain the approval of the Center Export Administrator before granting the contractor
the authority to use this exemption.
(b) Contract clause. Insert the clause
at 1852.225–70, Export Licenses, in all
solicitations and contracts, except in
contracts with foreign entities. Insert
the clause with its Alternate I when
the NASA project office indicates that
technical data (including software) is
to be exchanged by the contractor with
a NASA foreign partner pursuant to an
international agreement.

Subpart 1825.70—Foreign Contract and International Agreement Clearances
1825.7000

Scope of subpart.

This subpart prescribes policy and
procedures for pre-award clearance of
foreign contracts, and for coordination
of international agreements that contemplate award of contracts using appropriated funds.
1825.7001

Definition.

Foreign contract acquisition, as used in
this subpart, means the acquisition by
negotiation of supplies or services, including construction and research and
development when the work is to be
performed outside the United States,
its possessions, and Puerto Rico by a
foreign government or instrumentality
thereof or by a foreign private contractor. The term does not include—
(a) Negotiation of contracts with domestic concerns involving work to be
performed outside the United States,
its possessions, and Puerto Rico; or
(b) Contracts with the Canadian
Commercial Corporation.
1825.7002

Foreign contracts.

(a) Policy. Following the procedure in
paragraph (b) of this section, the Acquisition Team must coordinate with
Headquarters before initiating any foreign contract acquisition if the acquisition is valued above $100,000 or involves export control issues. An acquisition involves export control issues if
it entails—

1825.7002

(1) Importing or exporting goods or
technical data from or to a country
listed in 22 CFR 126.1(a) or 126.1(d)
(Subchapter M, the International Traffic in Arms Regulations) (http://
www.pmdtc.org/itar2.htm);
(2) Importing or exporting Defense
Articles or Defense Services on the
United States Munitions List at 22
CFR part 121 which would require
NASA to obtain a license from the
State Department’s Office of Defense
Trade Controls;
(3) Exporting goods or technical data
on the Commerce Control List at 15
CFR part 774 and that require NASA to
obtain either a Special or an Individual
Validated License;
(4) Importing and/or exporting goods
or technical data from or to an entity
listed in 15 CFR part 740, Supplement 1,
Country Group D; or
(5) Exporting and/or importing of
goods, technology, or services to or
from any entity subject to transaction
control, embargo, or sanctions pursuant to 31 CFR Chapter V.
(b) Procedure. (1) The Headquarters or
field installation technical office requiring a foreign contract acquisition
meeting any of the criteria listed in
paragraph (a) of this section must submit the following information to the
Headquarters Office of External Relations (Code I) through the contracting
officer and the Headquarters Office of
Procurement (Code HS)—
(i) The name of the foreign entity,
the country or countries involved, and
the purpose of the contract;
(ii) The Space Act agreement(s) involved, if any;
(iii) A description of the goods or
technical data requiring prior written
approval or the issuance of the license
for their import or export from the Departments of Commerce, State, or
Treasury; and
(iv) The reason why the acquisition is
being placed with a foreign entity.
(2) All coordination required between
NASA and the Departments of Commerce, State, and Treasury regarding
foreign contract acquisitions shall be
accomplished
through
the
Headquarters Office of External Relations
(Code I).
(3) The lead-time for obtaining an export license is 60 to 90 days. Requests

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1825.7003

48 CFR Ch. 18 (10–1–02 Edition)

for Headquarters clearance should be
initiated as early as possible.
1825.7003 International agreements.
Office of Procurement (Code HS) concurrence is required for all Memoranda
of Understanding with foreign entities

and for other types of international
agreements which contemplate the procurement of goods or services using
U.S. appropriated funds. No Code H
concurrence is required for agreements
which are done solely on a cooperative
basis.

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SUBCHAPTER E—GENERAL CONTRACTING REQUIREMENTS
acquisitions unless
cepted in this part.

PART 1827—PATENTS, DATA, AND
COPYRIGHTS
Sec.
1827.000

specifically

Subpart 1827.3—Patent Rights
Under Government Contracts

Scope of part.

Subpart 1827.3—Patent Rights Under
Government Contracts

1827.301

1827.301 Definitions.
1827.302 Policy.
1827.303 Contract clauses.
1827.303–70 NASA solicitation provisions
and contract clauses.
1827.304 Procedures.
1827.304–1 General.
1827.304–2 Contracts placed by or for other
Government agencies.
1827.304–3 Contracts for construction work
or architect-engineer services.
1827.304–4 Subcontracts.
1827.304–5 Appeals.
1827.305 Administration of the patent rights
clauses.
1827.305–3 Follow-up by Government.
1827.305–370 NASA patent rights and new
technology follow-up procedures.
1827.305–371 New technology reporting plan.
1827.305–4 Conveyance of invention rights
acquired by the Government.

Subpart 1827.4—Rights in Data and
Copyrights
1827.404 Basic rights in data clause.
1827.405 Other data rights provisions.
1827.406 Acquisition of data.
1827.406–70 Reports of work.
1827.408 Cosponsored research and development activities.
1827.409 Solicitation provisions and contract clauses.
1827.409–70 NASA contract clause.

Subpart 1827.6—Foreign License and
Technical Assistance Agreements
1827.670 Space Station technical data and
goods.
1827.670–1 Policy.
1827.670–2 Contract clause.
AUTHORITY: 42 U.S.C. 2473(c)(1).
SOURCE: 62 FR 36715, July 9, 1997, unless
otherwise noted.

1827.000 Scope of part.
This part prescribes NASA policies,
procedures, and clauses pertaining to
patents, data, and copyrights. The provisions of FAR Part 27 apply to NASA

Definitions.

Administrator, as used in this subpart,
means the Administrator of NASA or a
duly authorized representative.
Contract, as used in this subpart,
means any actual or proposed contract,
agreement, understanding, or other arrangement, and includes any assignment, substitution of parties, or subcontract executed or entered into
thereunder.
Made, in lieu of the definition in FAR
27.301, as used in this subpart, means
conceived or first actually reduced to
practice; provided that in the case of a
variety of plant, the date of determination (as defined in Section 41(d) of the
Plant Variety Protection Act, 7 U.S.C.
2401(d)) must also occur during the period of contract performance.
Reportable item, as used in this subpart, means any invention, discovery,
improvement, or innovation of the contractor, whether or not patentable or
otherwise protectible under Title 35 of
the United States Code, made in the
performance of any work under any
NASA contract or in the performance
of any work that is reimbursable under
any clause in any NASA contract providing for reimbursement of costs incurred before the effective date of the
contract. Reportable items include, but
are not limited to, new processes, machines, manufactures, and compositions of matter, and improvements to,
or new applications of, existing processes, machines, manufactures, and
compositions of matter. Reportable
items also include new computer programs, and improvements to, or new
applications of, existing computer programs, whether or not copyrightable or
otherwise protectible under Title 17 of
the United States Code.
Subject invention, in lieu of the definition in FAR 27.301, as used in this subpart, means any reportable item that is
or may be patentable or otherwise

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1827.302

48 CFR Ch. 18 (10–1–02 Edition)

protectible under Title 35 of the United
States Code, or any novel variety of
plant that is or may be protectible
under the Plant Variety Protection
Act (7 U.S.C. 2321 et seq.).
[62 FR 36715, July 9, 1997, as amended at 62
FR 58688, Oct. 30, 1997; 63 FR 63209, Nov. 12,
1998]

1827.302 Policy. (NASA supplements
paragraphs (a), (b), (c), (d), (e), (f),
(g), and (i)).
(a) Introduction.
(i) NASA policy with respect to any
invention, discovery, improvement, or
innovation made in the performance of
work under any NASA contract or subcontract with other than a small business firm or a nonprofit organization
and the allocation to related property
rights is based upon Section 305 of the
National Aeronautics and Space Act of
1958, as amended (42 U.S.C. 2457) (the
Act); and, to the extent consistent with
this statute, the Presidential Memorandum or Government Patent Policy
to the Heads of Executive Departments
and Agencies, dated February 18, 1983,
and Section 1(d)(4) of Executive Order
12591. NASA policy with respect to any
invention made in the performance of
experimental, developmental, or research work with a small business firm
or a nonprofit organization is based on
35 U.S.C. Chapter 18, as amended.
(ii) NASA contracts subject to Section 305 of the Act shall ensure the
prompt reporting of reportable items in
other to protect the Government’s interest and to provide widest practicable and appropriate dissemination,
early utilization, expeditious development, and continued availability for
the benefit of the scientific, industrial,
and commercial communities and the
general public.
(b) Contractor right to elect title.
(i) For NASA contracts, the contractor right to elect title only applies
to contracts with small businesses and
non-profit organizations. For other
business entities, see subdivision (ii) of
this paragraph.
(ii) Contractor right to request a
waiver of title. For NASA contracts
with other than a small business firm
or a nonprofit organization (contracts
subject to Section 305 of the Act), it is
the policy of NASA to waive the rights

(to acquire title) of the United States
(with the reservation of a Government
license set forth in FAR 27.302(c) and
the march-in rights of FAR 27.302(f)
and 1827.302(f)) in and to any subject invention if the Administrator determines that the interests of the United
States will be served. This policy, as
well as the procedures and instructions
for such waiver of rights, is stated in
the NASA Patent Waiver Regulations,
14 CFR Section 1245, Subpart 1. Waiver
may be requested in advance of contract award for any or all of the subject inventions, or for individually
identified subject inventions reported
under the contract. When waiver of
rights is granted, the contractor’s
right to title, the rights reserved by
the Government, and other conditions
and obligations of the waiver shall be
included in an Instrument of Waiver
executed by NASA and the party receiving the waiver.
(iii) It is also a policy of NASA to
consider for a monetary award, when
referred to the NASA Inventions and
Contributions Board, any subject invention reported to NASA in accordance with this subpart, and for which
an application for patent has been
filed.
(c) Government license. For each subject invention made in the performance
of work under a NASA contract with
other than a small business firm or
nonprofit organization and for which
waiver of rights has been granted in accordance with 14 CFR Section 1245,
Subpart 1, the Administrator shall reserve an irrevocable, nonexclusive,
nontransferable, royalty-free license
for the practice of such invention
throughout the world by or on behalf of
the United States or any foreign Government in accordance with any treaty
or agreement of the United States.
(d) Government right to receive title.
Under any NASA contract with other
than a small business or nonprofit organization (i.e., those contracts subject
to Section 305(a) of the Act), title to
subject inventions vests in NASA when
the determinations of Section 305(a)(1)
or 305(a)(2) have been made. The Administrator may grant a waiver of title
in accordance with 14 CFR Section
1245.

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National Aeronautics and Space Administration
(e) Utilization reports. For any
NASA contract with other than a small
business firm or a nonprofit organization, the requirements for utilization
reports shall be as set forth in the
NASA Patent Waiver Regulations, 14
CFR Section 1245, Subpart 1, and any
Instrument of Waiver executed under
those Regulations.
(f) March-in rights. For any NASA
contract with other than a small business firm or a nonprofit organization,
the march-in rights shall be as set
forth in the NASA Patent Waiver Regulations, 14 CFR Section 1245, Subpart
1, and any Instrument of Waiver executed under those Regulations.
(g) Preference for United States industry. Waiver of the requirement for
the agreement for any NASA contract
with other than a small business firm
or a nonprofit organization shall be in
accordance with the NASA Patent
Waiver Regulations, 14 CFR Section
1245, Subpart 1.
(i) Minimum rights to contractor.
(1) For NASA contracts with other
than a small business firm or a nonprofit organization (i.e., those contracts subject to Section 305(a) of the
Act), where title to any subject inventions vests in NASA, the contractor is
normally granted, in accordance with
14 CFR 1245, a revocable, nonexclusive,
royalty-free license in each patent application filed in any country and in
any resulting patent. The license extends to any of the contractor’s domestic subsidiaries and affiliates within
the corporate structure, and includes
the right to grant sublicenses of the
same scope to the extent the contractor was legally obligated to do so
at the time the contract was awarded.
The license and right are transferable
only with the approval of the Administrator, except when transferred to the
successor of that part of the contractor’s business to which the invention
pertains.
(2) The Administrator is the approval
authority for revoking or modifying a
license. The procedures for revocation
or modification are described in 37 CFR
404.10 and 14 CFR 1245.108.

1827.303–70

1827.303 Contract clauses. (NASA supplements paragraphs (a), (b), (c)
and (d))
(a)(1)(A) See 1827.303–70(a).
(B) To qualify for the clause at FAR
52.227–11, a prospective contractor may
be required to represent itself as either
a small business firm or a nonprofit organization. If there is reason to question the status of the prospective contractor, the contracting officer may
file a protest in accordance with FAR
19.302 if small business firm status is
questioned, or require the prospective
contractor to furnish evidence of its
status as nonprofit organization.
(5) Alternate IV to 52.227–11 is not
used in NASA contracts. See instead
1827.303–70(a).
(b)(1)(ii) FAR 52.227–12 is not used in
NASA contracts. See instead 1827.303–
70(b).
(c)(1)(ii) When work is to be performed outside the United States, its
possessions, and Puerto Rico by contractors that are not domestic firms,
see 1827.303–70(f).
(2) See 1827.303–70 (b) and (f).
(d)(1) When one of the conditions in
FAR 27.303(d)(1) (i) through (iv) is met,
the contracting officer shall consult
with the installation intellectual property counsel to determine the appropriate clause.
[62 FR 36715, July 9, 1997, as amended at 64
FR 36606, July 7, 1999]

1827.303–70 NASA solicitation provisions and contract clauses.
(a) When the clause at FAR 52.227–11
is included in a solicitation or contract, it shall be modified as set forth
at 1852.227–11.
(b) The contracting officer shall insert the clause at 1852.227–70, New
Technology, in all NASA solicitations
and contracts with other than a small
business firm or a nonprofit organization (i.e., those subject to section 305(a)
of the Act), if the contract is to be performed in the United States, its possessions, or Puerto Rico and has as a purpose the performance of experimental,
developmental, research, design, or engineering work. Contracts for any of
the following purposes may be considered to involve the performance of

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1827.304

48 CFR Ch. 18 (10–1–02 Edition)

work of the type described above (these
examples are illustrative and not limiting):
(1) Conduct of basic or applied research.
(2) Development, design, or manufacture for the first time of any machine,
article of manufacture, or composition
of matter to satisfy NASA’s specifications or special requirements.
(3) Development of any process or
technique for attaining a NASA objective not readily attainable through the
practice of a previously developed process or technique.
(4) Testing of, evaluation of, or experimentation with a machine, process,
concept, or technique to determine
whether it is suitable or could be made
suitable for a NASA objective.
(5) Construction work or architectengineer services having as a purpose
the performance of experimental, developmental, or research work or test
and evaluation studies involving such
work.
(6) The operation of facilities or the
coordination and direction of the work
of others, if these activities involve
performing work of any of the types described in paragraphs (b)(1) through (5)
of this section.
(c) The contracting officer shall insert the provision at 1852.227–71, Requests for Waiver of Rights to Inventions, in all solicitations that include
the clause at 1852.227–70, New Technology (see paragraph (b) of this section).
(d) The contracting officer shall insert the clause at 1852.227–72, Designation of New Technology Representative
and Patent Representative, in all solicitations and contracts containing either of the clauses at FAR 52.227–11,
Patent Rights—Retention by the Contractor (Short Form) or 1852.227–70,
New Technology (see paragraph (c) of
this section). It may also be inserted,
upon consultation with the installation
intellectual property counsel, in solicitations and contracts using another
patent rights clause. The New Technology Representative shall be the
Technology Utilization Officer or the
Staff member (by titled position) having cognizance of technology utilization matters for the installation concerned. The Patent Representative

shall be the intellectual property counsel (by titled position) having cognizance of patent matters for the installation concerned.
(e) The contracting officer shall insert the provision at 1852.227–84, Patent
Rights Clauses, in solicitations for experimental, developmental, or research
work to be performed in the United
States, its possessions, or Puerto Rico
when the eventual awardee may be a
small business or a nonprofit organization.
(f) As authorized in FAR 27.303(c)(2),
when work is to be performed outside
the United States, its possessions, and
Puerto Rico by contractors that are
not domestic firms, the clause at
1852.227–85, Invention Reporting and
Rights—Foreign, shall be used unless
the contracting officer determines,
with concurrence of the installation intellectual property counsel, that the
objectives of the contract would be better served by use of the clause at FAR
52.227–13, Patent Rights—Acquisition
by the Government. For this purpose,
the contracting officer may presume
that a contractor is not a domestic
firm unless it is known that the firm is
not foreign owned, controlled, or influenced. (See FAR 27.304–4(a) regarding
subcontracts with U.S. firms.)
[62 FR 36715, July 9, 1997, as amended at 62
FR 58688, Oct. 30, 1997]

1827.304

Procedures.

1827.304–1 General.
(NASA
supplements paragraphs (a), (b), (c), (f),
(g), and (h))
(a) Contractor appeals of exceptions. In
any contract with other than a small
business firm or nonprofit organization, the NASA Patent Waiver Regulations, 14 CFR Section 1245, Subpart 1,
shall apply.
(b) Greater rights determinations. In
any contract with other than a small
business firm or a nonprofit organization and with respect to which advance
waiver of rights has not been granted
(see 1827.302(b)), the contractor (or an
employee-inventor of the contractor
after consultation with the contractor)

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National Aeronautics and Space Administration
may request waiver of title to an individual identified subject invention pursuant to the NASA Patent Waiver Regulations, 14 CFR Section 1245, Subpart
1.
(c) Retention of rights by inventor. The
NASA Patent Waiver Regulations, 14
CFR Section 1245, Subpart 1, apply for
any invention made in the performance
of work under any contract with other
than a small business firm or a nonprofit organization.
(f) Revocation or modification of contractor’s minimum rights. Revocation or
modification of the contractor’s license
rights (see 1827.302–(i)(2)) shall be in accordance with 37 CFR 404.10, for subject
inventions made and reported under
any contract with other than a small
business firm or a nonprofit organization.
(g) Exercise of march-in rights. For
contracts with other than a small business firm or a nonprofit organization,
the procedures for the exercise of
march-in rights shall be as set forth in
the NASA Patent Waiver Regulations,
14 CFR Section 1245, Subpart 1.
(h) Licenses and assignments under
contracts with nonprofit organizations.
The Headquarters Associate General
Counsel (Intellectual Property) (Code
GP) is the approval authority for assignments. Contractor requests should
be made to the Patent Representative
designated in the clause at 1852.227–72
and forwarded, with recommendation,
to Code GP for approval.
1827.304–2 Contracts placed by or for
other Government agencies. (NASA
supplements paragraph (a))
(a)(3) When a contract is placed for
another agency and the agency does
not request the use of a specific patent
rights clause, the contracting officer,
upon consultation with the installation
intellectual property counsel, may use
the clause at FAR 52.227–11, Patent
Rights—Retention by the Contractor
(Short Form) as modified by 1852.227–11
(see 1827.303–70(a)) or 1852.227–70, New
Technology (see 1827.303–70(b)).
1827.304–3 Contracts for construction
work or architect-engineer services.
(NASA supplements paragraph (a))
(a) For construction or architect-engineer services contracts with other

1827.305–370

than a small business or nonprofit organization, see 1827.303–70(b).
1827.304–4 Subcontracts. (NASA supplements paragraph (a))
(a)(i) Unless the contracting officer
otherwise authorizes or directs, contractors awarding subcontracts and
subcontractors awarding lower-tier
subcontracts shall select and include
one of the following clauses, suitably
modified to identify the parties, in the
indicated subcontracts:
(A) The clause at 1852.227–70, New
Technology, in any subcontract with
other than a small business firm or a
nonprofit organization if a purpose of
the subcontract is the performance of
experimental, developmental, research,
design, or engineering work of any of
the types described in 1827.303–70(b) (1)–
(6).
(B) The clause at FAR 52.227–11, Patent Rights—Retention by the Contractor (Short Form), modified by
1852.227–11 (see 1827.303–70(a)), in any
subcontract with a small business firm
or a nonprofit organization if a purpose
of the subcontract is the performance
of experimental, developmental, or research work.
(ii) Whenever a prime contractor or a
subcontractor considers it inappropriate to include one of the clauses discussed in paragraph (a) of this section
in a particular subcontract, or a subcontractor refuses to accept the clause,
the matter shall be resolved by the
contracting officer in consultation
with the intellectual property counsel.
1827.304–5 Appeals.
FAR 27.304–5 shall apply unless otherwise provided in the NASA Patent
Waiver Regulations, 14 CFR Section
1245, Subpart 1.
1827.305 Administration of the patent
rights clauses.
1827.305–3

Follow-up by Government.

1827.305–370 NASA patent rights and
new technology follow-up procedures.
(a) For each contract containing a
patent rights clause or the clause at
1852.227–70, New Technology, the contracting officer shall take the following actions:

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1827.305–370

48 CFR Ch. 18 (10–1–02 Edition)

(1) Furnish, or require the contractor
or furnish directly, the New Technology Representative and the Patent
Representative a copy of each contract
(and modifications thereto), and copies
of the final technical report, interim
technical progress reports, and other
pertinent material provided under the
contract, unless the representatives indicate otherwise; and
(2) Notify the New Technology Representative as to which installation organizational element has technical
cognizance of the contract.
(b) The New Technology Representative shall take the following actions:
(1) Review the technical progress of
work performed under the contract to
ascertain whether the contractor and
its subcontractors are complying with
the clause’s reporting and recordkeeping requirements;
(2) Forward to the Patent Representative copies of all contractor and subcontractor written reports of reportable items and disclosures of subject
inventions, and a copy of the written
statement, if any, submitted with the
reports.
(3) Consult with the Patent Representative whenever a question arises
as to whether a given reportable item
is to be considered a subject invention
and whether it was made in the performance of work under the contract.
(4) Forward to the Patent Representative all correspondence relating to inventions and waivers under the New
Technology clause or election of title
under the Patent Rights—Retention by
the Contractor (Short Form) clause.
(5) Upon receipt of any final report
required by the clause, and upon determination that the contract work is
complete, determine whether the contractor has complied with the clause’s
reporting requirements. If so, the New
Technology Representative shall certify compliance, obtain the Patent
Representative’s concurrence, and forward the certification to the contracting officer.
(c) The Patent Representative shall
review each reportable item to ascertain whether it is to be considered a
subject invention, obtain any determinations required by paragraph (b) of
the clause at 1852.227–70, New Technology, and notify the contractor. As

to any subject invention, the Patent
Representative shall:
(1) Ensure that the contractor has
provided sufficient information to protect the Government’s rights and interests in it and to permit the preparation, filing, and prosecution of patent
applications;
(2) Determine inventorship;
(3) Ensure the preparation of instruments establishing the Government’s
rights’ and
(4) Conduct selected reviews to ensure that subject inventions are identified, adequately documented, and timely reported or disclosed.
(d) Either the New Technology Representative or the Patent Representative, in consultation with the other,
may prepare opinions, make determinations, and otherwise advise the
contracting officer with respect to any
withholding of payment under paragraph (g) of the clause at 1852.227–70,
New Technology. Either the New Technology Representative or the Patent
Representative may represent the contracting officer for the purpose of examining
the
contractor’s
books,
records, and other documents in accordance with paragraph (f) of the
clause and take corrective action as
appropriate. However, no action may
be taken by either the New Technology
Representative or the Patent Representative that would constitute a
final decision under the Disputes
clause, involve any change or increase
in the work required to be performed
under the contact that is inconsistent
with any right of appeal provided in
FAR 27.304–5 or 14 CFR 1245, Subpart 1,
or otherwise be outside the scope of the
contract.
(e) The contracting officer shall not
approve release of final payment under
the contract and, if applicable, any reserve set aside under the withholding
provisions of the clause for deficiencies
and delinquent reporting not corrected
as of the time of the submission of the
final report by the contractor until receipt of the New Technology Representative’s certification of compliance, and the Patent Representative’s
concurrence.

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National Aeronautics and Space Administration
1827.305–371 New technology reporting plan.
In contracts with an estimated cost
in excess of $2,500,000 (or less when appropriate) that contain the clause at
1852.227–70, New Technology, the contracting officer may require the contractor to submit for post-award Government approval a detailed plan for
new technology reporting that demonstrates an adequate understanding of
and commitment to the reporting requirements of the clause.
1827.305–4 Conveyance of invention
rights acquired by the Government.
(NASA supplements paragraph (a))
(a) When the Government acquires
the entire right to, title to, and interest in an invention under the clause at
1852.227–70, New Technology, a determination of title is to be made in accordance with Section 305(a) of the National Aeronautics and Space Act of
1958, as amended (42 U.S.C. 2457(a)), and
reflected in appropriate instruments
executed by NASA and forwarded to
the contractor.

Subpart 1827.4—Rights in Data
and Copyrights
1827.404 Basic rights in data clause.
(NASA supplements paragraphs (d),
(e), (f), (g), (h), and (i))
(d) Protection of limited rights data
specified for delivery. The contracting
officer shall consult with the installation patent or intellectual property
counsel regarding any questions concerning the delivery of limited rights
data and/or the use of Alternate II that
may arise from an offeror’s response to
the provision at FAR 52.227–15, Representation of Limited Rights Data and
Restricted Computer Software, or during negotiations.
(e) Protection of restricted computer
software specified for delivery. The contracting officer shall consult with the
installation patent or intellectual
property counsel regarding any questions concerning the delivery of restricted computer software and/or the
use of Alternate III that may arise
from an offeror’s response to the provision at FAR 52.227–15, Representation
of Limited Rights Data and Restricted

1827.404

Computer Software, or during negotiations.
(f) Copyrighted data.—(1)(ii) The contracting officer shall consult with the
installation patent or intellectual
property counsel before granting permission for a contractor to claim copyright subsisting in data, other than
computer software, first produced
under the contract.
(iv) The contracting officer, with the
concurrence of the installation intellectual property counsel, is the approval authority for obtaining a copyright license of a different scope than
set forth in subparagraph (c)(1) of the
clause at FAR 52.227–14, Rights in
Data—General, for any contract or
class of contracts.
(2)(i) The procurement officer is the
approval authority for obtaining a
copyright license of a different scope
than that set forth in subparagraph(c)(2) of the clause at FAR 52.227–
14 for any contract or class of contracts.
(g) Release, publication, and use of
data.
(3)(A) NASA’s intent is to ensure the
most expeditious dissemination of
computer software developed by it or
its contractor. Accordingly, when the
clause at FAR 52.227–14, Rights in
Data-General, is modified by 1852.227–14
(see 1827.409(a)), the contractor may
not assert claim to copyright, publish,
or release to others computer software
first produced in the performance of a
contract without the contracting officer’s prior written permission.
(B) The contracting officer may, in
consultation with the installation patent or intellectual property counsel,
grant the contractor permission to
copyright, publish, or release to others
computer software first produced in
the performance of a contract if:
(a) The contractor has identified an
existing commercial computer software product line or proposes a new
one and states a positive intention of
incorporating any computer software
first produced under the contract into
that line, either directly itself or
through a licensee;
(b) The contractor has made, or will
be required to make, significant contributions to the development of the
computer software by co-funding or by

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§ 1827.405

48 CFR Ch. 18 (10–1–02 Edition)

cost-sharing, or by contributing resources (including but not limited to
agreement to provide continuing maintenance and update of the software at
no cost for Governmental use); or
(c) The concurrence of the Headquarters Office of Aeronautics Commercial Technology Division (Code
RW) is obtained.
(C)(a) The contractor’s request for
permission
in
accordance
with
1827.404(g)(3)(A) may be made either before contract award or during contract
performance.
(b) Any permission granted in accordance with 1827.404(g)(3)(B) (a) or (b)
shall be by express contract provision
(or amendment) overriding subparagraph (d)(3) or FAR 52.227–14, Rights in
Data—General,
(as
modified
by
1852.227–14), rather than by deleting it.
The contract provision may contain
appropriate assurances that the computer software will be incorporated
into an existing or proposed new commercial computer software product
line within a reasonable time and/or
that the agreed contributions to the
Government are fulfilled, with contingencies enabling the Government to
obtain the right to distribute the software for commercial use, including the
right to obtain assignment of copyright where applicable, in order to prevent the computer software from being
suppressed or abandoned by the contractor.
(c) Any permission granted in accordance with 1827.404(g)(3)(B)(c) may be either by deleting subparagraph (d)(3) or
by special contract provision, as appropriate.
(d) When any permission to copyright
is granted, any copyright license retained by the Government shall be of
the same scope as set forth in subparagraph (c)(1) of the clause at FAR 52.227–
14 and without any obligation of confidentiality on the part of the Government, unless in accordance with
1827.404(g)(3)(B)(b) the contributions of
the Contractor may be considered
‘‘substantial’’ for the purposes of FAR
27.408 (i.e., approximately 50 percent),
in which case rights consistent with
FAR 27.408 may be negotiated for the
computer software in question.
(D) If the contractor has not been
granted permission to copyright, para-

graph (d)(3)(ii) of the clause at FAR
52.227–14, Rights in Data—General (as
modified by 1852.227–14) enables NASA
to direct the contractor to assert claim
to copyright in computer software first
produced under the contract and to assign, or obtain the assignment of, such
copyright to the Government or its
designee. The contracting officer may,
in consultation with the installation
intellectual property counsel, so direct
the contractor in situations where
copyright protection is considered necessary in furtherance of Agency mission objectives, needed to support specific Agency programs, or necessary to
meet statutory requirements.
(h) Unauthorized marking of data. The
contracting officer shall consult with
the installation patent or intellectual
property counsel before taking any action regarding unauthorized markings
of data under paragraph (e) of the
clause at FAR 52.227–14, Rights in
Data—General.
(i) Omitted or incorrect notices. The
contracting officer shall consult with
the installation patent or intellectual
property counsel before agreeing to add
or correct any markings on data under
paragraph (f) of the clause at FAR
52.227–14, Rights in Data—General.
§ 1827.405 Other data rights provisions. (NASA supplements paragraphs (b) and (c))
(b)(2) Acquisition of existing computer
software. See 1827.409(k) (i)–(ii) and
1827.409–70 for modifications and alternatives to the clause at 52.227–19.
(c) Contracts awarded under the Small
Business Innovative Research (SBIR) Program. If, during the performance of an
SBIR contract (Phase I or Phase II),
the need arises for NASA to obtain delivery of restricted computer software
as defined in the clause at FAR 52.227–
20, Rights in Data—SBIR Program, and
the contractor agrees to such delivery,
the restricted computer software may
be required with restricted rights by
modification of the contract or under
an agreement incorporated in and
made part of the contract, using the restricted rights set forth in FAR
27.404(e) and the related restrictions as
a guide.

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National Aeronautics and Space Administration
1827.406 Acquisition of data. (NASA
supplements paragraph (a))
(a) General. Requirements for delivering technical data relating to standard commercial items, components, or
processes should be kept to the absolute minimum consistent with the purpose for which they are being procured.
Normally, a vendor’s manuals for installation, operation, or maintenance
and repair and/or form, fit, and function data are adequate.
1827.406–70 Reports of work.
(a) When considered necessary for
monitoring contract performance, contracting officers must require contractors to furnish reports of work performed under research and development contracts (fixed-price and cost reimbursement),
interagency
agreements, or in cost-reimbursement supply contracts. This purpose may be
achieved by including the following
general requirements, modified as
needed to meet the particular requirements of the contract, in the section of
the contract specifying data delivery
requirements:
(1) Monthly progress reports. Reports
should be in narrative form, brief, and
informal. They should include a quantitative description of progress, an indication of any current problems that
may impede performance, proposed
corrective action, and a discussion of
the work to be performed during the
next
monthly
reporting
period.
(Normally, this requirement should not
be used in contracts with nonprofit organizations.)
(2) Quarterly progress reports. In addition to factual data, these reports
should include a separate analysis section interpreting the results obtained,
recommending further action, and relating occurrences to the ultimate objectives of the contract. Sufficient diagrams, sketches, curves, photographs,
and drawings should be included to
convey the intended meaning.
(3) Final report. This report should
summarize the results of the entire
contract, including recommendations
and conclusions based on the experience and results obtained. The final report should include tables, graphs, diagrams, curves, sketches, photographs,
and drawings in sufficient detail to ex-

1827.408

plain comprehensively the results
achieved under the contract. The final
report must comply with NPG 2200.2A,
Guidelines for Documentation, Approval, and Dissemination of NASA
Scientific and Technical Information.
(4) Report Documentation Page. The
final report must include a completed
Report Documentation Page, Standard
Form (SF) 298 as the final page of the
report.
(b) The contracting officer must consider the desirability of providing reports on the completion of significant
units or phases of work, in addition to
periodic reports and reports on the
completion of the contract.
(c) Submission of final report. In addition to the original of the final report
submitted to the contracting officer,
contracts containing the clause at
1852.235–70, Center for AeroSpace Information—Final Scientific and Technical
Reports (see 1835.070(a)), must require
the concurrent submission of a reproducible copy and a printed or reproduced copy of the final report to the
NASA Center for AeroSpace Information (CASI).
(d) NASA review of final report. When
required by the contract, final reports
submitted to NASA for review, shall be
reviewed for technical accuracy, conformance with applicable law, policy
and publication standards, and to determine the availability and distribution of NASA-funded documents containing scientific and technical information (STI) (NASA Form 1676, NASA
Scientific and Technical Document
Availability Authorization (DAA)). The
final report must not be released outside of NASA until NASA’s DAA review
has been completed and the availability of the document has been determined. The document is considered
available when it is accessible through
CASI.
[65 FR 45307, July 21, 2000]

1827.408 Cosponsored research
development activities.

The contracting officer shall consult
with the installation patent or intellectual property counsel before limiting the acquisition of or acquiring
less than unlimited rights to any data
developed under contracts involving

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1827.409

48 CFR Ch. 18 (10–1–02 Edition)

cosponsored research and development
activities.
1827.409 Solicitation provisions and
contract clauses. (NASA supplements paragraph (a), (b), (c), (d), (e),
(i), and (k))
(a) The contracting officer shall add
subparagraph (3) set forth in 1852.277–14
to paragraph (d) of the clause at FAR
52.227–14, Rights in Data—General, except in solicitations and contracts for
basic or applied research with universities or colleges.
(b) The contracting officer, with the
concurrence of the installation intellectual property counsel, is the approval authority for use of Alternate I.
An example of its use is where the principal purpose of the contract (such as a
contract for basic or applied research)
does not involve the development, use,
or delivery of items, components, or
processes that are intended to be acquired for use by or for the Government (either under the contract in
question or under any anticipated follow-on contracts relating to the same
subject matter).
(c) The contracting officer shall normally add the disclosure purposes listed in FAR 27.404(d)(1) (i)–(v) to subparagraph (g)(2). However, the contracting
officer may, upon consultation with
the installation patent or intellectual
property counsel, make deletions from
the specific purposes listed. If all are
deleted, the word ‘‘None’’ must be inserted. Additions to those specific purposes listed may be made only with the
approval of the procurement officer
and concurrence of the installation
patent or intellectual property counsel.
(d) The contracting officer shall consult with the installation patent or intellectual property counsel regarding
the acquisition of restricted computer
software with greater or lesser rights
than those set forth in Alternate III.
Where it is impractical to actually
modify the notice of Alternate III, this
may be done by express reference in a
separate clause in the contract or by a
collateral agreement that addresses
the change in the restricted rights.
(e) The contracting officer, with the
concurrence of the installation intellectual property counsel, is the approval authority for the use of Alter-

nate IV in any contract other than a
contract for basic or applied research
to be performed solely by a college or
university on campus (but not for the
management or operation of Government facilities).
(i) The contract officer shall modify
the clause at FAR 52.227–17, Rights in
Data—Special Works by adding paragraph (f) as set forth in 1852.227–17.
(k)(i) The contracting officer shall
add paragraph (e) as set forth in
1852.227–19(a) to the clause at FAR
52.227–19, Commercial Computer Software—Restricted Rights, when it is
contemplated that updates, correction
notices, consultation information, and
other similar items of information relating to commercial computer software delivered under a purchase order
or contract are available and their receipt can be facilitated by signing a
vendor supplied agreement, registration forms, or cards and returning
them directly to the vendor.
(ii) The contracting officer shall add
paragraph (f) as set forth at 1852.227–
19(b) to the clause at FAR 52.227–19,
Commercial Computer Software—Restricted Rights, when portions of a contractor’s standard commercial license
or lease agreement consistent with the
clause, Federal laws, standard industry
practices, and the FAR are to be incorporated into the purchase order or contract.
(iii) See 1827.409–70.
1827.409–70

NASA contract clause.

The contracting officer shall use the
clause at 1852.227–86, Commercial Computer Software—Licensing, in lieu of
FAR 52.227–19, Commercial Computer
Software—Restricted Rights, when it is
considered appropriate for the acquisition of existing computer software in
accordance with FAR 27.405(b)(2).

Subpart 1827.6—Foreign License
and
Technical
Assistance
Agreements
1827.670 Space Station technical data
and goods.
1827.670–1

Policy.

NASA and its contractors shall comply will all applicable export control

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National Aeronautics and Space Administration
laws, including the International Traffic in Arms Regulations (ITAR), 22 CFR
Parts 120–130, and the Export Administration Regulations (EAR), 15 CFR
Parts 730–799, with respect to the transfer of technical data and goods to any
International Space Station program
multilateral partner or contractor.
When authorized, certain technical
data in support of the International
Space Station program may be exported to a foreign recipient specified
in writing by the contracting officer.
Contracting officers, or designees, will
assure that any transfer of data to a
foreign recipient will be in compliance
with all applicable directives, including the NASA Export Control Program.
1827.670–2

Contract clause.

The contracting officer shall insert
the clause at 1852.227–87, Transfer of
Technical Data Under Space Station
International Agreements, in all solicitations, contracts, and purchase orders
in support of Space Station program
activities that may involve transfer of
technical data subject to the International Traffic in Arms Regulations,
22 CFR Parts 120–130, or the Export Administration Regulations (EAR), 15
CFR Parts 730–799 in accordance with
the NASA Export Control Program.

PART 1828—BONDS AND
INSURANCE
Subpart 1828.1—Bonds
Sec.
1828.101 Bid guarantees.
1828.101–70 NASA solicitation provision.
1828.103 Performance and payment bonds
and alternative payment protections for
other than construction contracts.
1828.103–70 Subcontractors performing construction work under nonconstruction
contracts.
1828.103–71 Solicitation requirements and
contract clauses.
1828.106 Administration.
1828.106–6 Furnishing information.

Subpart 1828.2—Sureties
1828.202
1828.203

Acceptability of corporate sureties.
Acceptability of individual sureties.

1828.103–70

Subpart 1828.3—Insurance
1828.307 Insurance under cost-reimbursement contracts.
1828.307–1 Group insurance plans.
1828.307–2 Liability.
1828.307–70 Insurance of industrial facilities.
1828.311 Solicitation provision and contract
clause on liability insurance under costreimbursement contracts.
1828.311–1 Contract clause.
1828.311–2 Agency solicitation provisions
and contract clauses.
1828.311–270 NASA solicitation provisions
and contract clauses.
1828.370 Fixed-price contract clauses.
1828.371 Clauses for cross-waivers of liability for Space Shuttle services, Expendable Launch Vehicle (ELV) launches, and
Space Station activities.
1828.372 Clause for minimum insurance coverage.
AUTHORITY: 42 U.S.C. 2473(c)(1).
SOURCE: 61 FR 55765, Oct. 29, 1996, unless
otherwise noted.

Subpart 1828.1—Bonds
1828.101

Bid guarantees.

1828.101–70
sion.

NASA

solicitation

The contracting officer shall insert
the provision at 1852.228–73, Bid Bond,
in construction solicitations where offers are expected to exceed $100,000 and
a performance bond or a performance
and payment bond is required (see FAR
28.102 and 28.103). The contracting officer may increase the amount of the bid
bond to protect the Government from
loss, as long as the amount does not exceed $3 million.
1828.103 Performance and payment
bonds and alternative payment protections for other than construction
contracts.
1828.103–70 Subcontractors
performing construction work under
nonconstruction contracts.
(a) The contracting officer shall require prime contractors on nonconstruction contracts to obtain the
following performance and/or payment
protection from subcontractors performing construction work:
(1) Performance and payment bonds
when the subcontract construction

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1828.103–71

48 CFR Ch. 18 (10–1–02 Edition)

work is in excess of $1000,000 and is determined by NASA to be subject to the
Miller Act.
(2) An appropriate payment protection determined according to FAR
28.102–1(b)(1) when the subcontract construction work is greater than $25,000
but not greater than $100,000.
(b) The contracting officer shall establish the penal amount in accordance
with FAR 28.102–2 based on the subcontract value.
(c) The bonds shall be provided on SF
25, Performance Bond, and SF 25A,
Payment Bond. These forms shall be
modified to name the NASA prime contractor as well as the United States of
America as obligees.
1828.103–71 Solicitation requirements
and contract clauses.
When performance and payment
bonds or alternative payment protections are required from subcontractors
performing construction work under
nonconstruction prime contracts, the
contracting officer shall follow the procedures in FAR 28.102–3. When alternative payment protections are required, insert a clause substantially
the same as FAR 52.228–13, Alternative
Payment Protections, appropriately
modified.
1828.106

Administration.

1828.106–6 Furnishing
information.
(NASA supplements paragraph (c))
(c) The contracting officer is the
agency head’s designee.

Subpart 1828.2—Sureties
1828.202 Acceptability of corporate
sureties. (NASA supplements paragraph (d))
(d) Contracting officers may obtain
access to Department of Treasury Circular 570 through the internet at http:/
/www.ustreas.gov/treasury/bureaus/
finman/c570.html.
1828.203 Acceptability of individual
sureties. (NASA supplements paragraph (g))
(g) Notification of suspected criminal
or fraudulent activities, with all supporting documentation, shall be sub-

mitted to the Headquarters Office of
Procurement (Code HS).

Subpart 1828.3—Insurance
1828.307 Insurance under
bursement contracts.

cost-reim-

1828.307–1 Group
insurance
plans.
(NASA supplements paragraph (a))
(a) The procurement officer is the approval authority.
1828.307–2 Liability. (NASA supplements paragraph (b))
(b)(2)(A) The procurement officer
may approve a requirement for property damage liability insurance when:
(a) A commingling of operations permits property damage coverage at a
nominal cost to NASA under insurance
carried by the contractor in the course
of its commercial operations; or
(b) The contractor is engaged in the
handling of high explosives or in extra
hazardous research and development
activities undertaken in populated
areas.
(B) In all other circumstances, the
Assistant Administrator for Procurement (Code HS) is the approval authority.
1828.307–70 Insurance of industrial facilities.
When industrial facilities are provided by the Government under a facilities contract or a lease, the contract or lease shall require that during
the period of construction, installation, alteration, repair, or use, and at
any other time as directed by the contracting officer, the contractor or lessee shall ensure or otherwise provide
approved security for liabilities to
third persons (including employees of
the contractor or lessee) in the manner
and to the same extent as required in
FAR 28.307–2.
1828.311 Solicitation provision and
contract clause on liability insurance
under
cost-reimbursement
contracts.
1828.311–1 Contract clause.
The contracting officer must insert
the clause at FAR 52.228–7, Insurance—
Liability to Third Persons, as prescribed in FAR 28.311–1, unless—

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National Aeronautics and Space Administration
(a) Waived by the procurement officer; or
(b) The successful offeror represents
in its offer that it is totally immune
from tort liability as a State agency or
as a charitable institution.
[65 FR 54440, Sept. 8, 2000]

1828.311–2 Agency solicitation provisions and contract clauses.
1828.311–270 NASA solicitation provisions and contract clauses.
(a) The contracting officer must insert the clause at 1852.228–71, Aircraft
Flight Risks, in all cost-reimbursement contracts for the development,
production,
modification,
maintenance, or overhaul of aircraft, or otherwise involving the furnishing of aircraft to the contractor, except when
the aircraft are covered by a separate
bailment.
(b) The contracting officer must insert the provision at 1852.228–80, Insurance—Immunity from Tort Liability,
in solicitations for research and development when a cost-reimbursement
contract is contemplated.
(c) The contracting officer must insert FAR clause 52.228–7 and the associated clause at 1852.228–81, Insurance—
Partial Immunity From Tort Liability,
when the successful offeror represents
in its offer that the offeror is partially
immune from tort liability as a State
agency or as a charitable institution.
(d) The contracting officer must insert the clause at 1852.228–82, Insurance—Total Immunity From Tort Liability, when the successful offeror represents in its offer that the offeror is
totally immune from tort liability as a
State agency or as a charitable institution.
[65 FR 54440, Sept. 8, 2000]

1828.370 Fixed-price contract clauses.
(a) The contracting officer shall insert the clause at 1852.228–70, Aircraft
Ground and Flight Risk, in all negotiated fixed-price contracts for the development, production, modification,
maintenance, or overhaul of aircraft,
or otherwise involving the furnishing
of aircraft to the contractor, except as
provided in paragraph (b) of this section, unless the aircraft are covered by
a separate bailment. See the clause

1828.371

preface for directions for modifying the
clause to accommodate various circumstances.
(b) The Government need not assume
the risk of aircraft damage, loss, or destruction as provided by the clause at
1852.228–70 if the best estimate of premium costs that would be included in
the contract price for insurance coverage for such damage, loss, or destruction at any plant or facility is less
than $500. If it is determined not to assume this risk, the clause at 1852.228–70
shall not be made a part of the contract, and the cost of necessary insurance to be obtained by the contractor
to cover this risk shall be considered in
establishing the contract price. In such
cases, however, if performance of the
contract is expected to involve the
flight of Government-furnished aircraft, the substance of the clause at
1852.228–71, Aircraft Flight Risks, suitably adapted for use in a fixed-price
contract, shall be used.
(c) When the clause at 1852.228–70 is
used, the term ‘‘Contractor’s premises’’
shall be expressly defined in the contract Schedule and shall be limited to
places where aircraft may be located
during the performance of the contract. Contractor’s premises may include, but are not limited to, those
owned or leased by the contractor or
those for which the contractor has a
permit, license, or other right of use either exclusively or jointly with others,
including Government airfields.
1828.371 Clauses for cross-waivers of
liability for Space Shuttle services,
Expendable Launch Vehicle (ELV)
launches, and Space Station activities.
(a) In agreements covering Space
Shuttle
services,
certain
ELV
launches, and Space Station activities,
NASA and other signatories (the parties) agree not to bring claims against
each other for any damage to property
or for injury or death of employees
that occurs during the time such a
cross-waiver is in effect. These agreements involving NASA and other parties include, but are not limited to,
Memoranda of Understanding with foreign Governments, Launch Services
Agreements, and other agreements for
the use of NASA facilities. These
agreements require the parties to flow

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1828.372

48 CFR Ch. 18 (10–1–02 Edition)

down the cross-waiver provisions to
their related entities so that contractors, subcontractors, customers, and
other users of each party also waive
their right to bring claims against
other parties and their similarly related entities for damages arising out
of activities conducted under the
agreements. The purpose of the clauses
prescribed in this section is to flow
down the cross-waivers to NASA contractors and subcontractors.
(b) The contracting officer shall insert the clause 1852.228–72, Cross-waiver
of Liability for Space Shuttle Services,
in solicitations and contracts of
$100,000 or more when the work to be
performed involves ‘‘Protected Space
Operations’’ (applicable to the Space
Shuttle) as that term is defined in the
clause. If Space Shuttle services under
the contract are being conducted in
support of the Space Station program,
the contracting officer shall insert the
clause prescribed by paragraph (d) of
this section and designate application
of the clause to those particular activities.
(c) The contracting officer shall insert the clause at 1852.228–78, CrossWaiver of Liability for NASA Expendable Launch Vehicle (ELV) Launches,
in solicitations and contracts of
$100,000 or more for the acquisition of
ELV launch services when the service
is being acquired by NASA pursuant to
an agreement described in paragraph
(a) of this section. If, under a contract
that covers multiple launches, only
some of the launches are for payloads
provided pursuant to such agreements,
an additional clause shall be inserted
in the contract to designate the particular launches to which this clause
applies. If a payload is being launched
by use of an ELV in support of the
Space Station program, the contracting officer shall insert the clause
prescribed by paragraph (d) of this section and designate application of the
clause to that particular launch.
(d) The contracting officer shall insert the clause at 1852.228–76, CrossWaiver of Liability for Space Station
Activities, in solicitations and contracts of $100,000 or more when the
work is to be performed involves
‘‘Protected
Space
Operations’’

(relating to the Space Station) as that
term is defined in the clause.
(e) At the contracting officer’s discretion, the clauses prescribed by paragraphs (b), (c), and (d) of this section
may be used in solicitations, contracts,
new work modifications, or extensions,
to existing contracts under $100,000 involving Space Shuttle activities, ELV
launch services, or Space Station activities, respectively, in appropriate
circumstances. Examples of such circumstances are when the value of contractor property on a Government installation used in performance of the
contract is significant, or when it is
likely that the contractor or subcontractor will have its valuable property
exposed to risk or damage caused by
other participants in the Space Shuttle
services, ELV launches, or Space Station activities.
1828.372 Clause for minimum insurance coverage.
In accordance with FAR 28.306(b) and
28.307, the contracting officer may insert a clause substantially as stated at
1852.228–75, Minimum Insurance Coverage, in fixed-price solicitations and
in cost-reimbursement contracts. The
contracting officer may modify the
clause to require additional coverage,
such as vessel liability, and higher limits if appropriate for a particular acquisition.

PART 1829—TAXES
Subpart 1829.1—General
Sec.
1829.101

Resolving tax problems.

Subpart 1829.2 Federal Excise Taxes
1829.203 Other Federal tax exemptions.
1829.203–70 NASA Federal tax exemptions.
AUTHORITY: 42 U.S.C. 2473(c)(1).
SOURCE: 61 FR 55767, Oct. 29, 1996, unless
otherwise noted.

Subpart 1829.1—General
1829.101 Resolving
tax
problems.
(NASA supplements paragraph (a))
(a)(i) The Headquarters Office of the
General Counsel (Code G) is the designated legal counsel for all external

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National Aeronautics and Space Administration
contacts on FAR part 29 tax issues, including communications with the Department of Justice, other Federal
agencies, and any taxing authority.
(ii) Tax problems that cannot be
solved readily by reference to FAR
Part 29 shall be forwarded to Code G
through the installation’s Office of
Chief Counsel. The following material,
as applicable, shall be forwarded to
Code G with a copy to the Assistant
Administrator for Procurement (Code
HS):
(A) A comprehensive statement of
pertinent facts, including documents
and correspondence.
(B) A copy of the contract.
(C) A thorough review of the legal
issues involved and recommended action.
(D) If appropriate, a statement of the
problem’s effects on acquisition policies and procedures, with recommendations.

Subpart 1829.2—Federal Excise
Taxes
1829.203 Other
tions.

Federal

tax

exemp-

1829.203.70 NASA Federal tax exemptions.
(a) The Assistant Administrator for
Procurement has obtained a permit
from the Bureau of Alcohol, Tobacco,
and Firearms (Treasury Department)
enabling NASA and its contractors to
purchase spirits (e.g., specially denatured spirits) tax-free for nonbeverage
Government use. Installations can obtain copies of the permit from the
Headquarters Office of Procurement
(Code HS).
(b) When purchasing spirits for use
by NASA personnel, the contracting officer shall attach a copy of the permit
to the contract. Upon receipt of the
spirits, the permit shall be returned to
the contracting officer unless future
orders are anticipated.
(c) When a NASA contractor requires
spirits to perform a NASA contract,
the contracting officer shall furnish
the contractor a copy of the permit to
provide its vendor. Upon receipt of the
spirits, the contractor shall return the
permit to the contracting officer unless
future orders are anticipated. In any

1830.201–5

event, the permit shall be returned
upon completion of the contract.
(d) The contracting officer shall post
a copy of the permit for inspection.

PART 1830—COST ACCOUNTING
STANDARDS ADMINISTRATION
Subpart 1830.2—CAS Program
Requirements
Sec.
1830.201–5

Waiver.

Subpart 1830.70—Facilities Capital Employed for Facilities in Use and For Facilities Under Construction
1830.7001 Facilities capital employed for facilities in use.
1830.7001–1 Contract facilities capital estimates.
1830.7001–2 DD Form 1861 completion instructions.
1830.7001–3 Preaward FCCOM applications.
1830.7001–4 Postaward FCCOM applications.
1830.7002 Facilities capital employed for facilities under construction.
1830.7002–1 Definitions.
1830.7002–2 Cost of money calculations.
1830.7002–3 Representative investment calculations.
1830.7002–4 Determining imputed cost of
money.
AUTHORITY: 42 U.S.C. 2473(c)(1).
SOURCE: 61 FR 55767, Oct. 29, 1996, unless
otherwise noted.

Subpart 1830.2—CAS Program
Requirements
1830.201–5 Waiver. (NASA supplements
paragraphs (a) and (e))
(a)(2) The Assistant Administrator
for Procurement is the only individual
authorized to approve CAS waivers. Requests for waivers that meet the conditions in FAR 30.201–5(b) must be submitted to the Headquarters Office of
Procurement (Code HK) at least 30 days
before the anticipated contract award
date.
(e) The Assistant Administrator for
Procurement will submit NASA’s report to the CAS Board.
[65 FR 49206, Aug. 11, 2000]

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1830.7001

48 CFR Ch. 18 (10–1–02 Edition)

1830.7001 Facilities capital employed
for facilities in use.
1830.7001–1 Contract facilities capital
estimates.
To estimate facilities capital cost of
money (FCCOM), the contracting officer shall use DD Form 1861, Contract
Facilities Capital Cost of Money, after
evaluating the contractor’s cost proposal, establishing cost of money factors, and developing a prenegotiation
cost objective.
1830.7001–2 DD For 1861 completion
instructions.
(a) List overhead pools and directcharging services centers (if used) in
the same structure as they appear on
the contractor’s cost proposal and
Form CASB–CMF. The structure and
allocation base units-of-measure must
be compatible on all three displays.
(b) Extract appropriate contract
overhead allocation base data, by year,
from the evaluated cost breakdown or
prenegotiation cost objective, and list
them against each overhead pool and
direct-charging service center.
(c) Multiply each allocation base by
its corresponding cost of money factor
to compute the FCCOM estimated to be
incurred each year. The sum of these
products represents the estimated contract FCCOM for the year’s effort.
(d) Add the yearly estimates to calculate the total contract FCCOM.
1830.7001–3 Preaward FCCOM applications.
Apply FCCOM in establishing cost
and price objectives as follows:
(a) Cost objective. Us the FCCOM with
normal, booked costs in establishing a
cost objective or the target cost of an
incentive type contract. Do not subsequently adjust these target costs when
actual cost of money rates become
available during the contract performance period.
(b) Profit/fee objective. Do not include
FCCOM in the cost base when establishing a prenegotiation profit/fee objective. Use only normal, booked costs
in this cost base.

1830.7001–4 Postaward FCCOM applications.
(a) Interim billings based on costs incurred. (1) The contractor may include
FCCOM in cost reimbursement and
progress payment invoices. To determine the amount that qualifies as cost
incurred, multiply the incurred portions of the overhead pool allocation
bases by the latest available cost of
money factors. These FCCOM calculations are interim estimates subject to
adjustment.
(2) As actual cost of money factors
are finalized, use the new factors to
calculate FCCOM for the next accounting period.
(b) Final settlements. (1) Contract
FCCOM for final cost determination or
repricing is based on each year’s final
cost of money factors determined
under CAS 414 and supported by separate Forms CASB–CMF.
(2) Separately compute contract
FCCOM in a manner similar to yearly
final overhead rates. As in overhead
rates, include in the final settlement
an adjustment from interim to final
contract FCCOM. Do not adjust the
contract estimated or target cost.
1830.7002 Facilities capital employed
for facilities under construction.
1830.7002–1

Definitions.

(a) Cost of money rate is either—
(1) The interest rate determined by
the Secretary of the Treasury under
Public Law 92–41 (85 Stat. 97); or
(2) The time-weighted average of
such rates for each cost accounting period during which the capital asset is
being constructed, fabricated, or developed.
(b) Representative investment is the
calculated amount considered invested
by the contractor during the cost accounting period to construct, fabricate,
or develop the capital asset.
1830.7002–2
tions.

Cost

of

money

(a) The interest rate referenced in
1830.7002–1(a)(1) is established semi-annually and published in the FEDERAL
REGISTER during the fourth week of December and June.

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National Aeronautics and Space Administration
(b) To calculate the time-weighted
average interest rate referenced in
1830.7002–1(a)(2), multiply the rates in
effect during the months of construction by the number of months each
rate was in effect, and then divide the
sum of the products by the total number of months.
1830.7002–3 Representative
investment calculations.
(a) The calculation of the representative investment requires consideration
of the rate or expenditure pattern of
the costs to construct, fabricate, or develop a capital asset.
(b) If the majority of the costs were
incurred toward the beginning, middle,
or end of the cost accounting period,
the contractor shall either:
(1) Determine a representative investment for the cost accounting period by calculating the average of the
month-end balances for that cost accounting period; or
(2) Treat month-end balances as individual representative investments.
(c) If the costs were incurred in a
fairly uniform expenditure pattern
throughout the construction, fabrication, or development period, the contractor may either:
(1) Determine a representative investment for the cost accounting period by averaging the beginning and
ending balances of the construction,
fabrication, or development cost account for the cost accounting period;
or
(2) Treat month-end balances as individual representative investments.
(d) The method chosen by the contractor to determine the representative
investment amount may be different
for each capital asset being constructed, fabricated, or developed, provided the method fits the expenditure
pattern of the costs incurred.
1830.7002–4 Determining imputed cost
of money.
(a) Determine the imputed cost of
money for an asset under construction,
fabrication, or development by applying a cost of money rate (see 1830.7002–
2) to the representative investment
(see 1830.7002–3).
(1) When a representative investment
is determined for a cost accounting pe-

1831.205–32

riod in accordance with 1830.7002–3(b)(1)
or 1830.7002–3(c)(1), the cost of money
rate shall be the time-weighted average rate.
(2) When a monthly representative
investment is used in accordance with
1830.7002–3(b)(2) or 1830.7002–3(c)(2), the
cost of money rate shall be that in effect each month. Under this method,
the FCCOM is determined monthly,
and the total for the cost accounting
period is the sum of the monthly calculations.
(b) The imputed cost of money will be
capitalized only once in any cost accounting period, either at the end of
the accounting period or the end of the
construction, fabrication, or development period, whichever comes first.
(c) When the construction, fabrication, or development of an asset takes
more than one accounting period, the
cost of money capitalized for the first
accounting period will be included in
determining the representative investment for any future cost accounting
periods.

PART 1831—CONTRACT COST
PRINCIPLES AND PROCEDURES
Subpart 1831.2—Contracts With
Commercial Organizations
Sec.
1831.205 Selected costs.
1831.205–32 Precontract costs.
1831.205–70 Contract clause.
1831.205–670 Evaluation of contractor and
subcontractor compensation for service
contracts.
1831.205–671 Solicitation provision.
AUTHORITY: 42 U.S.C. 2473(c)(1).
SOURCE: 61 FR 55768, Oct. 29, 1996, unless
otherwise noted.

Subpart 1831.2—Contracts with
Commercial Organizations
1831.205

Selected costs.

1831.205–32

Precontract costs.

(1) Precontract costs are applicable
only to—
(i) Sole source awards, except those
resulting in firm-fixed price or fixedprice with economic price adjustment
contracts; or

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1831.205–70

48 CFR Ch. 18 (10–1–02 Edition)

(ii) Awards resulting from broad
agency announcements.
(2) The procurement officer is the approval authority for the use of
precontract costs. Authorization shall
be in writing and must address the following:
(i) The necessity for the contractor
to initiate work prior to contract
award;
(ii) The start date of such contractor
effort;
(iii) The total estimated time of the
advanced effort; and
(iv) The cost limitation.
(3)
Authorization
to
incur
precontract costs must be provided to
the contractor in writing and must include the following:
(i) The start date for incurrence of
such costs;
(ii) The limitation on the total
amount of precontract costs which
may be incurred;
(iii) A statement that the costs are
allowable only to the extent they
would have been if incurred after formal contract award; and
(iv) A statement that the Government is under no obligation to reimburse the contractor for any costs unless a contract is awarded.
[61 FR 55768, Oct. 29, 1996, as amended at 65
FR 38777, June 22, 2000; 65 FR 46628, July 31,
2000]

1831.205–70 Contract clause.
The contracting officer must insert
the clause at 1852.231–70, Precontract
Costs, in contracts for which specific
coverage of precontract costs is authorized under 1831.205–32.
[61 FR 55768, Oct. 29, 1996, as amended at 65
FR 46628, July 31, 2000]

1831.205–670 Evaluation of contractor
and subcontractor compensation
for service contracts.
(a) The contracting officer must
evaluate the reasonableness of compensation for service contracts:
(1) Prior to the award of a cost reimbursement or non-competitive fixedprice type contract which has a total
potential value in excess of $500,000,
and
(2) Periodically after award for cost
reimbursement contracts, but at least
every three years.

(b) The contracting officer must ensure the reasonableness of compensation is evaluated for cost reimbursement or non-competitive fixed-price
type service subcontracts under a
prime contract meeting the criteria in
paragraph (a)(1) of this section where:
(1) The subcontract has a total potential value in excess of $500,000; and
(2) The cumulative value of all of a
subcontractor’s service subcontracts
under the prime contract is in excess of
10 percent of the prime contract’s total
potential value.
(c)(1) Offerors must be required to
submit as part of their proposals a
compensation plan addressing all proposed labor categories. Offerors also
shall demonstrate in writing that their
proposed compensation is reasonable.
(2) Subcontractors meeting the criteria in paragraph (b) of this section
must be required to comply with paragraph (c)(1).
(d)
The
contracting
officer’s
preaward evaluation of each offeror’s
and their subcontractors’ compensation should be done as part of, or in addition to DCAA audits, price analyses,
or any other means deemed to be necessary.
(e) The results of the contracting officer’s evaluation, including any excessive compensation found and its
planned resolution, must be addressed
in the prenegotiation position memorandum, with the final resolution discussed in the price negotiation memorandum.
(f) The contracting officer must ensure that the reasonableness of compensation for cost reimbursement subcontracts meeting the criteria in paragraphs (b) (1) and (2) of this section is
periodically reviewed after award, but
at least every three years.
(g) The results of the periodic evaluations of contractor and subcontractor
compensation after contract award
must be documented in the contract
file.
[62 FR 4467, Jan. 30, 1997, as amended at 65
FR 46628, July 31, 2000]

1831.205–671 Solicitation provision.
The contracting officer must insert a
provision substantially the same as the
provision at 1852.231–71, Determination
of Compensation, in solicitations for

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National Aeronautics and Space Administration
services which contemplate the award
of a cost reimbursement or non-competitive fixed-price type service contract having a total potential value in
excess of $500,000.
[62 FR 4467, Jan. 30, 1997, as amended at 65
FR 46628, July 31, 2000]

1832.007

1832.704–70 Incrementally funded fixed-price
contracts.
1832.705 Contract clauses.
1832.705–2 Clauses for limitation of cost or
funds.
1832.705–270 NASA clauses for limitation of
cost or funds.

Subpart 1832.9—Prompt Payment

PART 1832—CONTRACT
FINANCING

1832.908

Subpart 1832.10—Performance-Based
Payments

Sec.
1832.006–2 Definition.
1832.007 Contract financing payments.

1832.1001
1832.1004
1832.1005
1832.1009

Subpart 1832.1—Non-Commercial Item
Purchase Financing
1832.111 Contract clauses for non-commercial purchases.
1832.111–70 NASA contract clause.

Policy.
Procedures.
Contract clauses.
Title.

Subpart 1832.11—Electronic Funds Transfer
1832.1110 Solicitation
tract clauses.

Subpart 1832.2—Commercial Item
Purchase Financing
1832.202–1 Policy.
1832.206 Solicitation
tract clauses.

Contract clauses.

provision

and

AUTHORITY: 42 U.S.C. 2473(c)(1).
SOURCE: 61 FR 55768, Oct. 29, 1996, unless
otherwise noted.

provisions

and

con-

1832.006–2

Definition.

The Assistant Administrator for Procurement is the Agency remedy coordination official.

Subpart 1832.4—Advance Payments For
Non-Commercial Items
1832.402 General.
1832.406 Letters of credit.
1832.407 Interest.
1832.409 Contracting officer action.
1832.409–1 Recommendation for approval.
1832.409–170 NASA procedure for approval.
1832.410 Findings, determination, and authorization.
1832.412 Contract clause.
1832.412–70 NASA Contract clauses.

Subpart 1832.5—Progress Payments Based
on Costs
1832.501 General.
1832.501–1 Customary
progress
payment
rates.
1832.501–2 Unusual progress payments.
1832.502 Preaward matters.
1832.502–2 Contract finance office clearance.
1832.502–4 Contract clauses.
1832.502–470 NASA contract clause.
1832.503 Postaward matters.
1832.503–5 Administration of progress payments.
1832.504 Subcontracts.

Subpart 1832.7—Contract Funding
1832.702 Policy.
1832.702–70 NASA policy.
1832.704 Limitation of cost or funds.

1832.007

Contract financing payments.

(a)(1) Except as authorized in 1832.908,
it is NASA’s policy to make contract
financing payments on the 30th day
after the designated billing office has
received a proper request. However, the
due date for making contract financing
payments for a specific contract may
be earlier than the 30th day, but not
earlier than 7 days, after the designated billing office has received a
proper request, provided that:
(i) The contractor provides consideration whose value is determined to be
greater than the cost to the United
States Treasury of interest on funds
paid prior to the 30th day, calculated
using the Current Value of Funds Rate
published annually in the FEDERAL
REGISTER (subject to quarterly revision);
(ii) The contracting officer approves
the payment date change, with the
concurrence of the installation Financial Management Officer; and
(iii) The contract file includes documentation regarding the value of the

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1832.111

48 CFR Ch. 18 (10–1–02 Edition)

consideration and the analysis determining that value.
[67 FR 30604, May 7, 2002]

Subpart 1832.1—Non-Commercial
Item Purchase Financing
1832.111 Contract clauses for non-commercial purchases.
1832.111–70 NASA contract clause.
The contracting officer shall insert
the clause at 1852.232–79, Payment for
On-Site Preparatory Costs, in solicitations and contracts for construction on
a fixed-price basis when progress payments are contemplated and pro rata
payment of on-site preparatory costs
to the contractor is appropriate.

Subpart 1832.2—Commercial Item
Purchase Financing
1832.202–1 Policy. (NASA supplements
paragraph (b))
(b)(6) Advance payment limitations
do not apply to expendable launch vehicle (ELV) service contracts. (see
1832.402).
1832.206 Solicitation provisions and
contract clauses. (NASA supplements paragraph (g))
(g)(2) The installment payment rate
shall be that which is common in the
commercial marketplace for the purchased item. If there is no commonly
used rate, the contracting officer shall
determine the appropriate rate. In no
case shall the rate exceed that established in the clause at FAR 52.232–30.

Subpart 1832.4—Advance Payments for Non-Commercial
Items
1832.402 General. (NASA supplements
paragraph (e))
(e)(1) The Director of the Headquarters Office of Procurement Contract Management Division (Code HK)
is the approval authority for all advance payments except the following:
(A) The procurement officer is the
approval authority for non-fee bearing
contracts with domestic entities when
the cumulative contract value is
$25,000,000 or less, and for all increases

to such contracts over $25,000,000 previously approved by the Headquarters
Office of Procurement as long as the
advance payment amount outstanding
at any time is not increased.
(B) The contracting officer is the approval authority for the following actions. In these cases, a findings and determination (see FAR 32.410) is not required.
(a) Small Business Innovation Research (SBIR) and Small Business
Technology Transfer (STTR) Phase I
contracts. A class deviation has been
signed authorizing use of advance payments on these contracts. The contracting officer shall annotate the contract file that the deviation is on file
at the NASA Headquarters Office of
Procurement (Code HK).
(b) Expendable launch vehicle (ELV)
service contracts. 42 U.S.C. 2459c authorizes advance payments for these
contracts. The contracting officer shall
document the contract file with the rationale for approving the use of advance payments.
(e)(2) All advance payment authorization requests, except those authorized
by 1832.402(e)(1)(B), shall be coordinated
with the installation Deputy Chief Financial Officer.
[61 FR 55768, Oct. 29, 1996, as amended at 63
FR 14040, Mar. 24, 1998; 66 FR 29728, June 1,
2001]

1832.406 Letters of credit. (NASA supplements paragraph (b))
(b)(1) Each installation is considered
a contracting agency for the purposes
of this requirement.
1832.407 Interest. (NASA supplements
paragraph (d))
(d)(1) Advance payments without interest are authorized.
1832.409

Contracting officer action.

1832.409–1 Recommendation
proval.
1832.409–170
proval.

for

NASA procedure for ap-

In addition to the items listed in
FAR 32.409–1, requests for Headquarters
approval of advance payments (see
1832.402(e)(1)) shall include the following information:

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National Aeronautics and Space Administration

1832.502–2

(a) Name of the cognizant NASA
Headquarters program or staff office;
(b) Name and phone number of the
contracting officer or negotiator;
(c) A copy of the proposed advance
payments clause;
(d) If a profit/fee is contemplated, the
factors considered in determining the
profit/fee (see subpart 1815.404–470);
(e) Information justifying the adequacy of security to cover the maximum advance payment amount at any
time outstanding.

tracts of the Small Business Innovation Research (SBIR) or Small Business Technology Transfer (STTR) programs.
(f) See 1832.412(e).

[61 FR 55769, Oct. 29, 1996, as amended at 62
FR 36721, July 9, 1997; 63 FR 9967, Feb. 27,
1998]

[63 FR 14040, Mar. 24, 1998]

1832.410 Findings, determination, and
authorization. (NASA supplements
paragraph (b))
(b) Generally, the format in FAR
32.410 should be used, tailored as follows:
(i) In format subparagraph (a)(2), use
the phrase ‘‘Advance payments (In an
amount not to exceed $* * * at any
time outstanding)’’ in all determinations and findings. The phrase means
the maximum unliquidated dollar
amount a contractor would need in advance payments at any point in time
for the particular contract. The
amount would not usually be the full
contract value. The amount inserted
should be based on an analysis of the
contractor’s financing needs (monthly
or other appropriate period) for the
specific contract involved.
(ii) In the second sentence of format
subparagraph (a)(4), delete the reference to a special financial institution
account if no special financial institution account is required.
(iii) Use format subparagraph (a)(6),
and not (a)(7) or (a)(8).
(iv) At the end of format paragraph
(b), use ‘‘is in the public interest.’’
(v) In format paragraph (c), use the
phrase ‘‘(the amount at any time outstanding)’’ in all determinations and
findings.
[61 FR 55768, Oct. 29, 1996, as amended at 66
FR 53547, Oct. 23, 2001]

1832.412 Contract clause. (NASA supplement paragraphs (e) and (f))
(e) The contracting officer shall use
Alternates IV and V when advance payments are provided on Phase I con-

[63 FR 14040, Mar. 24, 1998]

1832.412–70

NASA Contract clauses.

When the clause at FAR 52.232–12 or
its Alternates II or V are used, insert
the clause at 1852.232–70, NASA Modification of FAR 52.232–12.

Subpart 1832.5—Progress
Payments Based on Costs
1832.501

General.

1832.501–1 Customary progress payment rates. (NASA supplements
paragraph (a))
(a) The customary progress payment
rate for all NASA contracts is 85 percent for large business, 90 percent for
small business, 95 percent for small disadvantaged business, and 100 percent
for Phase II contracts in the Small
Business Innovation Research (SBIR)
and Small Business Technology Transfer (STTR) programs. The contracting
officer shall insert the applicable percentage in paragraphs (a) and (b) of the
clause at FAR 52.232–16.
1832.501–2 Unusual
ments.

progress

The Director of the Headquarters Office of Procurement Contract Management Division (Code HK) is the approval authority for the use of unusual
progress payments.
[63 FR 14040, Mar. 24, 1998]

1832.502

Preaward matters.

1832.502–2 Contract
clearance.

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The Director of the Headquarters Office of Procurement Contract Management Division (Code HK) is the approval authority for the actions at
FAR 32.502–2, except the Assistant Administrator for Procurement (Code HK)
is the approval authority for any deviations addressed in FAR 32.502–2(b).
[63 FR 14040, Mar. 24, 1998]

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1832.502–4
1832.502–4

48 CFR Ch. 18 (10–1–02 Edition)
Contract clauses.

1832.502–470 NASA contract clause.
The contracting officer may insert a
clause substantially as stated at
1852.232–82, Submission of Requests for
Progress Payments, in fixed-price solicitations and contracts that provide
for progress payments. The recipient of
the requests and number of copies may
be changed as required.
1832.503

Postaward matters.

1832.503–5 Administration of progress
payments.
(NASA
supplements
paragraph (c).)
(c)(i) If the contractor requests it and
the contracting officer approving individual progress payments agrees, the
administration of progress payments
may be based on the overall contract
agreement. Under this method, the
contractor must include a supporting
schedule with each request for a
progress payment. The schedule should
identify the costs applicable to each
order.
(ii) The contracting officer may treat
a group of orders as a single unit for
administration of progress payments if
each order in the group is subject to a
uniform liquidation rate and under the
jurisdiction of the same payment office.
[65 FR 31102, May 16, 2000]

1832.504 Subcontracts. (NASA supplements paragraph (c))
(c) Unusual progress payments to
subcontractors shall be approved in accordance with 1832.501–2.

Subpart 1832.7—Contract Funding
1832.702

Policy.

1832.702–70 NASA policy.
(a) Cost-reimbursement contracts
may be incrementally funded only if
all the following conditions are met:
(1) The total value of the contract
(including options as defined in FAR
Subpart 17.2) is—
(i) $500,000 or more for R&D contracts
under which no supplies are deliverable; or
(ii) $1,000,000 or more for all other
contracts.

(2) The period of performance exceeds
one year.
(3) The funds are not available to
fund the total contract value fully at
award.
(4) Initial funding of the contract is
$100,000 or more.
(b) Fixed-price contracts, other than
those for research and development,
shall not be incrementally funded.
(c)(1) Fixed-price contracts for research and development may be incrementally funded if the conditions of
1832.702–70(a)(1) through (4) are met and
the initial funding of the contract is at
least 50 percent of the total fixed price.
(2) Incrementally funded fixed-price
contracts shall be fully funded as soon
as adequate funding becomes available.
(d) Except for a modification issued
to fully fund a contract, incremental
funding modifications shall not be
issued for amounts totaling less than
$25,000.
(e) Except for a modification issued
to close out a contract, modifications
deobligating funds shall not be issued
for amounts totaling less than $25,000.
(f) The procurement officer, with the
concurrence of the installation Comptroller, may waive any of the conditions set forth in paragraphs 1832.702–
70(a) through (e). The procurement officer shall maintain a record of all such
approvals during the fiscal year.
(g) A class deviation from the conditions set forth in paragraphs 1832.702–
70(a) through (e) exists to permit incremental funding of contracts under
Phase II of the Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs. This deviation exists with the
understanding that the contracts will
be fully funded when funds become
available.
[67 FR 7619, Feb. 20, 2002]

1832.704

Limitation of cost or funds.

1832.704–70 Incrementally
funded
fixed-price contracts.
(a) Upon receipt of the contractor’s
notice under paragraph (c)(1) of the
clause at 1852.232–77, Limitation of
Funds (Fixed Price Contract), the contracting officer shall promptly provide
written notice to the contractor that
the Government is—

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National Aeronautics and Space Administration
(1) Allotting additional funds in a
specified amount for continued performance;
(2) Terminating the contract; or
(3) Considering whether to allot additional funds; and
(i) The contractor is entitled to stop
work in accordance with paragraph (b)
of the clause at 1852.232–77, Limitation
of Funds; and
(ii) Any costs expended beyond the
amount specified in paragraph (a) of
the clause at 1852.232–77, Limitation of
Funds, are incurred at the contractor’s
risk.
(b) Upon determining that the contract will receive no further funds, the
contracting officer shall promptly give
notice of the Government’s decision
and terminate for the convenience of
the Government.
1832.705

Contract clauses.

1832.705–2 Clauses for limitation of
cost or funds.
1832.705–270 NASA clauses for limitation of cost or funds.
(a) The contracting officer shall insert the clause at 1852.232–77, Limitation of Funds (Fixed-Price Contract),
in solicitations and contracts for fixedprice incrementally funded research
and development.
(b) The contracting officer shall insert a clause substantially as stated at
1852.232–81, Contract Funding, in Section B of solicitations and contracts
containing the clause at FAR 52.232–22,
Limitation of Funds. Insert the
amounts of funds available for payment, the items covered, and the applicable period of performance. The
amount obligated for fee in paragraph
(b) of the clause should always be sufficient to pay fee anticipated to be
earned for the work funded by the
amount in paragraph (a) of the clause.

Subpart 1832.9—Prompt Payment
1832.908 Contract clauses. (NASA supplements paragraph (c).)
(c)(2) When the clause at FAR 52.232–
25, Prompt Payment, is used in such
contracts with the Canadian Commercial Corporation (CCC), insert ‘‘17th’’ in

1832.1004

lieu of ‘‘30th’’ in paragraphs (a)(1)(i)(A),
(a)(1)(i)(B), and (a)(1)(ii).
[64 FR 5621, Feb. 4, 1999, as amended at 67 FR
30604, May 7, 2002]

Subpart 1832.10—PerformanceBased Payments
1832.1001

Policy.

(a)(i) In determining whether performance-based payments are practical
in competitive negotiated acquisitions,
the contracting officer should consider
the procedural impacts (e.g., proposal
evaluation complications, longer evaluations, elimination of the potential
for award without discussions, increased proposal information requirements) and the impact on small business competitiveness.
(ii) The contracting officer must obtain approval from the Director of the
Headquarters Office of Procurement
Contract Management Division (Code
HK) to use performance-based payments in competitive negotiated solicitations under $50M. The request for approval must include an assessment of
the practicality of using performancebased payments, as well as the proposed
performance-based
payments
evaluation
approach
(see
1832.1004(e)(1)(ii)).
[65 FR 31102, May 16, 2000]

1832.1004

Procedures.

(a) See 1815.201(c)(6)(E) for establishing performance bases and payment
terms in competitive negotiated acquisitions.
(e)(1)(ii) Use of the price adjustment
evaluation technique may require obtaining and analyzing proposal information that is normally not required
in NASA firm-fixed-price competitions
(see 1815.403–3). When using performance-based payments in competitive
negotiated acquisitions under $50 million, contracting officers should consider the use of alternative evaluation
methods, e.g., qualitative evaluation
under Mission Suitability or another
appropriate factor.
[65 FR 31103, May 16, 2000]

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1832.1005

48 CFR Ch. 18 (10–1–02 Edition)

1832.1005 Contract
clauses.
(NASA
supplements paragraph (a))
(a) If the contract is for launch services, the contracting officer shall delete paragraph (f) of the clause at FAR
52.232–32 in accordance with 1832.1009.
(b)(2) Contracting officers shall not
use Alternate I in competitive negotiated acquisitions under $50 million,
unless approval has been obtained to
use performance-based payments (see
1832.1001(a)(ii)).
[61 FR 55768, Oct. 29, 1996, as amended at 65
FR 31103, May 16, 2000]

1832.1009 Title.
In accordance with 42 U.S.C. 2465d,
NASA shall not take title to launch vehicles under contracts for launch services unless one of the exceptions in the
law applies. However, the law does not
eliminate NASA’s right to take title to
other property acquired or produced by
the contractor under a contract containing a title provision.

Subpart 1832.11—Electronic Funds
Transfer
1832.1110 Solicitation provision and
contract clauses. (NASA supplements paragraphs (a), (b), and (c)).
(a)(1) NASA does not use the Central
Contractor
Registration.
Use
the
clause at FAR 52.232–34, Payment by
Electronic Funds Transfer—Other than
Central Contractor Registration.
(b) In accordance with FAR 32.1106(b),
the use of a nondomestic EFT mechanism is authorized. When a nondomestic EFT mechanism is used, the
contracting officer shall replace the
paragraph at FAR 52.232–34(c) with a
description of the EFT mechanism that
will be used for the contract.
(c) The payment office shall be the
designated office for receipt of contractor EFT information for all NASA
contracts.
[64 FR 18373, Apr. 14, 1999]

PART 1833—PROTESTS, DISPUTES,
AND APPEALS
Subpart 1833.1—Protests
Sec.
1833.103

Protests to the agency.

1833.104 Protest to GAO.
1833.106 Solicitation provision and contract
clause.
1833.106–70 Solicitation provision.

Subpart 1833.2—Disputes and Appeals
1833.209
1833.210
1833.211
1833.215

Suspected fraudulent claims.
Contracting officer’s authority.
Contracting officer’s decision.
Contract clause.

AUTHORITY: 42 U.S.C. 2473(c)(1).
SOURCE: 61 FR 55771, Oct. 29, 1996, unless
otherwise noted.

Subpart 1833.1—Protests
1833.103 Protests to the agency. (NASA
supplements paragraphs (c), (d) and
(f).)
(c) An independent review under the
provision at 1852.233–70 is available as
an alternative to a protest to the contracting officer, but not as an appeal of
a protest decision. All independent reviews shall be conducted by the Associate Administrator for Procurement
or designee. Such reviews are different
from the Ombudsman Program described at 1815.7001.
(d) NASA shall summarily dismiss
and take no further action upon any
protest to the Agency if the substance
of the protest is pending in judicial
proceedings or the protester has filed a
protest on the same acquisition with
the United States GeneralAccounting
Office prior to receipt of an Agency
protest decision.
(4) When a potential bidder or offeror
submits an Agency protest to NASA to
the contracting officer or alternatively
requests an independent review, the decision of the contracting officer or the
independent review official shall be
final and is not subject to any appeal
or reconsideration within NASA.
(f) Protests received at NASA offices
or locations other than that of the cognizant contracting officer shall be immediately referred to the contracting
officer for disposition (see 1833.106(a)).
The contracting officer shall advise the
Headquarters Offices of Procurement
(Code HS) and the General Counsel
(Code GK) of the receipt of the protest
and the planned and actual disposition.
This paragraph does not apply when

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National Aeronautics and Space Administration
the protester has requested an independent review under the provision at
1852.233–70.
(1) The Assistant Administrator for
Procurement (Code HS) is the approval
authority for contract award.
(3) The Assistant Administrator for
Procurement (Code HS) is the approval
authority for authorizing continued
contract performance.
[62 FR 11108, Mar. 11, 1997, as amended at 64
FR 36607, July 7, 1999; 67 FR 61519, Oct. 1,
2002]

1833.104 Protests to GAO. (NASA supplements paragraphs (a), (b), (c),
and (f))
The Assistant Administrator for Procurement is the sole authority for deciding whether to defend a protest to
GAO or to direct remedial action.
NASA personnel shall take no action
to respond to or resolve any protest
filed with GAO other than in accordance with this part and other guidance
provided by NASA Headquarters.
(a)(2) The Headquarters Office of Procurement (Code HS) shall notify the
contracting officer of protest receipt,
and the contracting officer shall immediately give notice of the protest to all
interested parties. Oral contracting officer notices shall be subsequently confirmed in writing, and the contracting
officer shall also send a copy of the
written confirmation to Code HS, the
Headquarters Office of the General
Counsel (Code GK), and the installation
Chief Counsel.
(3)(i) The contracting officer shall
send four copies of the protest report,
consisting of the protest file, the contracting officer’s statement of facts,
and a draft memorandum of law to
Code GK within 20 days after GAO notification of protest receipt. Also include
a copy of the file index in electronic
format. The contracting officer shall
retain a minimum of two copies of the
protest file.
(ii) When an actual or prospective offeror requests access to a protest file,
the contracting officer shall take the
following actions, except the actions
defined in paragraph (a)(3)(ii) (a) and

1833.106–70

(b) are not required if already accomplished:
(a) Send a copy of the protest file
index to Code GK within 10 days of receipt of the request.
(b) Send a copy of the protest file to
Code GK within 15 days of receipt of
the request.
(c) With Code GK concurrence, send
the protest file and index to the requesting party to ensure delivery within 20 days after receipt of the request.
(iv) Code GK shall submit the protest
file to GAO.
(4)(i) Code GK shall provide copies of
the report to the protestor(s), any intervenors, and the installation Chief
Counsel.
(b)(1) The Assistant Administrator
for Procurement (Code HS) is the approval authority for contract award.
(c)(1) The contracting officer shall
consult Code HS before terminating a
protested contract.
(2) The Assistant Administrator for
Procurement
(Code
HS)
is
the
appproval authority for authorizing
contract performance.
(f) The Agency may request GAO reconsideration of its decision within 10
days of issuance. If reconsideration is
appropriate, the installation Chief
Counsel shall forward a draft request
for reconsideration, with any additional supporting documentation, to
Code GK within 6 days of issuance of
the GAO decision.
[61 FR 55771, Oct. 29, 1996, as amended at 63
FR 32763, June 16, 1998; 64 FR 5621, Feb. 4,
1999]

1833.106 Solicitation provision and
contract clause. (NASA supplements
paragraph (a))
(a) The contracting officer shall be
the designated recipient of Agency protests in paragraph (a) of the provision
at FAR 52.233–2.
1833.106–70

Solicitation provision.

Contracting officers shall insert the
provision at 1852.233–70 in all solicitations.
[62 FR 11108, Mar. 11, 1997]

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1833.209

48 CFR Ch. 18 (10–1–02 Edition)

Subpart 1833.2—Disputes and
Appeals
1833.209 Suspected fraudulent claims.
The contracting officer shall report
suspected fraudulent claims to the
Headquarters Officers of Inspector General (Code W) and the General Counsel
(Code G).
1833.210 Contracting officer’s authority.
See NASA Policy Directive 2010.2 on
use of Alternative Dispute Resolution.
[63 FR 14041, Mar. 24, 1998]

1833.211 Contracting officer’s decision.
(NASA supplements paragraph (a))
(a)(4)(v) The Armed Services Board of
Contract Appeals is the NASA Administrator’s authorized representative for
hearing appeals of contracting officer

final decisions. Accordingly, contracting officers shall cite that fact in
the final decision letter, provide the
Board’s mailing address (Armed Services Board of Contract Appeals, Skyline Six, 5109 Leesburg Pike, Falls
Church, VA 22041–3208), and include a
notification that the Board’s operating
procedures appear in Title 48, Code of
Federal Regulations, Chapter 2, Appendix A.
1833.215

Contract clause.

The contracting officer shall use the
clause at FAR 52.233–1, Disputes, with
its Alternate I whenever continued performance is vital to national security,
the public health and welfare, important agency programs, or other essential supplies or services whose timely
reprocurement from other sources
would be impracticable.

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SUBCHAPTER F—SPECIAL CATEGORIES OF CONTRACTING
PART 1834—MAJOR SYSTEM
ACQUISITION

1835.015 Contracts for research with
educational institutions and nonprofit organizations. (NASA supplements paragraph (a))

Subpart 1834.0—General
Sec.
1834.003

Responsibilities.

AUTHORITY: 42 U.S.C. 2473(c)(1).
SOURCE: 62 FR 4467, Jan. 30, 1997, unless
otherwise noted.

Subpart 1834.0—General
1834.003

Responsibilities.

(a) NASA’s implementation of OMB
Circular No. A–109, Major System Acquisition, and FAR Part 34 is contained
in this part and in NASA Policy Directive (NPD) 7120.4, ‘‘Program/Project
Management,’’ and NASA Procedures
and Guidelines (NPG) 7120.5, ‘‘ NASA
Program and Project Management
Processes and Requirements’’.
[65 FR 58932, Oct. 3, 2000]

PART 1835—RESEARCH AND
DEVELOPMENT CONTRACTING
Sec.
1835.003 Policy.
1835.015 Contracts for research with educational institutions and nonprofit organizations.
1835.016 Broad agency announcements.
1835.016–70 Foreign
participation
under
broad agency announcements (BAAs).
1835.016–71 NASA Research Announcements.
1835.016–72 Foreign participation in NRA
proposals.
1835.070 NASA contract clauses and solicitation provision.
AUTHORITY: 42 U.S.C. 2473(c)(1).
SOURCE: 62 FR 4469, Jan. 30, 1997, unless
otherwise noted.

1835.003

Policy.

See NPG 5800.1, Grant and Cooperative Agreement Handbook, for policy
regarding the use of grants and cooperative agreements.

(a)(1)(iv) The research contract shall
include a requirement that the contractor obtain the contracting officer’s
approval when it plans to continue the
research work during a continuous period in excess of 3 months without the
participation of an approved principal
investigator or project leader.
1835.016 Broad
agency
announcements. (NASA supplements paragraphs (a) and (c))
(a)(i) The following forms of broad
agency announcements (BAAs) are authorized for use:
(A) Announcements of Opportunity
(see 1872).
(B) NASA Research Announcements
(see 1835.016–71).
(C) Other forms of announcements
approved by the Assistant Administrator for Procurement (Code HS).
(ii) Other program announcements,
notices, and letters not authorized by
paragraph (a)(i) of this section shall
not be used to solicit proposals that
may result in contracts.
(iii) Draft or final versions of any
form of BAA that directly or substantially supports a program subject to
NASA Procedures and Guidelines
(NPG) 7120.5 shall not be released unless—
(A) All applicable NPG 7120.5 required
documentation (see 1804.7301(b)(2)(i)) is
current and has been approved (e.g.,
Formulation Authorization Document,
Program
Commitment
Agreement,
Program Plan, or Project Plan); or
(B) Authority to proceed without the
required documentation has been
granted by the Chair of the Governing
Program Management Council or designee.
(c) BAAs may not preclude the participation of any offeror capable of satisfying the Government’s needs unless
a justification for other than full and

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1835.016–70

48 CFR Ch. 18 (10–1–02 Edition)

open competition is approved under
FAR 6.304.
[62 FR 4469, Jan. 30, 1997, as amended at 64
FR 14641, Mar. 26, 1999; 64 FR 48561, Sept. 7,
1999]

1835.016–70 Foreign
participation
under broad agency announcements (BAAs).
(a) Policy. (1) NASA seeks the broadest participation in response to broad
agency announcements, including foreign proposals or proposals including
foreign participation. NASA’s policy is
to conduct research with foreign entities on a cooperative, no-exchange-offunds basis (see NPD 1360.2, Initiation
and Development of International Cooperation in Space and Aeronautics
Programs). NASA does not normally
fund foreign research proposals or foreign research efforts that are part of
U.S. research proposals. Rather, cooperative research efforts are implemented via international agreements
between NASA and the sponsoring foreign agency or funding/sponsoring institution under which the parties agree
to each bear the cost of discharging
their respective responsibilities.
(2) In accordance with the National
Space Transportation Policy, use of a
non-U.S. manufactured launch vehicle
is permitted only on a no-exchange-offunds basis.
(3) NASA funding may not be used for
subcontracted foreign research efforts.
The direct purchase of supplies and/or
services, which do not constitute research, from non-U.S. sources by U.S.
award recipients is permitted.
(b) Procedure. When a foreign proposal or a U.S. proposal with foreign
participation is received in response to
a BAA, the NASA sponsoring office
shall determine whether the proposal
conforms to the no-exchange-of-funds
policy in 1835.016–70(a).
(1) If the proposal conforms to the
policy in 1835.016-70(a), the NASA sponsoring office shall evaluate the proposal and make selection in accordance
with 1835.016–71(d). In conjunction with
the notification of successful foreign
proposers, the NASA sponsoring office
shall notify the Headquarters Office of
External Relations, Code I. Code I will
negotiate the agreement with the spon-

soring foreign agency or funding institution for the proposed participation.
(2) If the proposal does not conform
to the policy in 1835.016–70(a), the
NASA sponsoring office shall:
(i) Determine whether the proposal
merits further consideration;
(ii) If further consideration is warranted, refer the proposal to Code I;
and
(iii) Complete the evaluation of the
proposal. However, no notification of
selection, whether tentative or final,
shall be made without Code I approval.
(3) Notification to Code I required by
paragraphs (b)(1) and (b)(2)(ii) of this
section, shall address the items contained in 1872.504(c), and shall be coordinated through the Office of Procurement, Code HS.
[64 FR 48561, Sept. 7, 1999]

1835.016–71 NASA
Research
Announcements.
(a) Scope. An NRA is used to announce research interests in support of
NASA’s programs, and, after peer or
scientific review using factors in the
NRA, select proposals for funding. Unlike an RFP containing a statement of
work or specification to which offerors
are to respond, an NRA provides for the
submission of competitive project
ideas, conceived by the offerors, in one
or more program areas of interest. An
NRA shall not be used when the requirement is sufficiently defined to
specify an end product or service.
(b) Issuance. (1) Before issuance, each
field-generated NRA shall be approved
by the installation director or designee, with the concurrence of the procurement officer, and each Headquarters-generated NRA shall be approved by the cognizant Program Associate Administrator or designee, with
the concurrence of the Headquarters
Offices of General Counsel (Code GK)
and Procurement (Code HS). In addition, the issuing office shall obtain
input from the cognizant offices responsible for matters of safety and mission assurance, occupational health,
environmental protection, information
technology, export control, and security. Input shall also be obtained from
the appropriate systems safety organization for NRA’s that may involve potentially hazardous operations such as

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National Aeronautics and Space Administration
those related to flight and/or mission
critical ground systems. The NRA approval authority shall designate the selection official.
(2) The selecting official shall assure
that the NRA is synopsized prior to
issuance in accordance with FAR 5.201.
The synopsis shall be brief, and the
technical section describing the area of
interest should not exceed 50 words.
(3) If a Headquarters-generated NRA
may result in awards by a NASA field
installation, the issuing office shall notify the installation procurement officer and provide a copy of the NRA.
(4) The selecting official is responsible for the preparation and distribution of the NRA.
(5) NRAs normally shall remain open
for at least 90 days.
(c) Content. The NRA shall consist of
the following sections and items. The
entire package shall be provided in response to requests.
(1) Cover. The cover shall display:
(i) ‘‘OMB Approval Number 2700–0087’’
in the upper right corner.
(ii) Title.
(iii) ‘‘NASA Research Announcement
Soliciting Research Proposals for the
Period Ending
(iv) NRA number.
(v) Official address for the office
issuing the NRA.
(2) Summary and Supplemental Information. (i) The Summary and Supplemental Information should not exceed two pages and shall include:
(A) Title and NRA number.
(B) The following statement concerning safety:
‘‘Safety is the freedom from those conditions that can cause death, injury, occupational illness, damage to or loss of equipment or property, or damage to the environment. NASA’s safety priority is to protect:
(1) The public, (2) astronauts and pilots, (3)
the NASA workforce (including employees
working under NASA award instruments),
and (4) high-value equipment and property.

(C) Introductory paragraphs describing the purpose of the NRA and the period for receipt of proposals.
(D) Address for submitting proposals.
(E) Number of copies required.
(F) Selecting official’s title.
(G) Names, addresses, and telephone
numbers for the technical and contracting points of contact.

1835.016–71

(H) The following statement when
the NRA is to be issued before funds
are available:
Funds are not currently available for
awards under this NRA. The Government’s
obligation to make award(s) is contingent
upon the availability of appropriated funds
from which payment can be made and the receipt of proposals that NASA determines are
acceptable for award under this NRA.

(ii) The Summary and Supplemental
Information may include estimates of
the amount of funds that will be available and the number of anticipated
awards. A breakdown of the estimates
by research area may also be shown.
(3) Technical Description. The first
page shall contain the NRA number
and title at the top. A brief description
not exceeding two pages is preferable,
but it should be detailed enough to enable ready comprehension of the research areas of interest. Specifications
containing detailed statements of work
should be avoided. Any program management information included must be
limited to matters that are essential
for proposal preparation.
(4) Instructions for Responding to
NASA Research Announcements. The
NRA shall contain instructions as stated in 1852.235–72 (see 1835.070(c)).
(d) Receipt of proposals, evaluation,
and selection. (1) Proposals shall be
protected as provided in FAR 15.608,
FAR 15.609, and 1815.609–70.
(2) Late proposals and modifications
shall be treated in accordance with
1815.208.
(3) The selection decision shall be
made following peer or scientific review of a proposal. Peer or scientific
review shall involve evaluation by an
in-house specialist, a specialist outside
NASA, or both. Evaluation by specialists outside NASA shall be conducted
subject to the conditions in 1815.207.
After receipt of a proposal and before
selection, scientific or engineering personnel shall communicate with an offeror only for the purpose of clarification (as defined in FAR 15.306), or to
understand the meaning of some aspect
of the proposal that is not clear, or to
obtain confirmation or substantiation
of a proposed approach, solution, or
cost estimate.

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1835.016–71

48 CFR Ch. 18 (10–1–02 Edition)

(4) Competitive range determinations
shall not be made, and final proposal
revisions shall not be requested.
(5) Part of a proposal may be selected
unless the offeror requests otherwise.
In addition, changes to a selected proposal may be sought if (i) the ideas or
other aspects of the proposal on which
selection is based are contained in the
proposal as originally submitted, and
are not introduced by the changes; and
(ii) the changes sought would not involve a material alteration to the requirements stated in the NRA. Changes
that would affect a proposal’s selection
shall not be sought. When changes are
desired, the selecting official may request revisions from the offeror or request the contracting officer to implement them during negotiations with
the successful offeror(s). The changes
shall not transfer information from one
offeror’s proposal to another offeror
(see FAR 15.306(e)). When collaboration
between offerors would improve proposed research programs, collaboration
may be suggested to the offerors.
(6) The basis for selection of a proposal shall be documented in a selection statement applying the evaluation
factors in the NRA. The selection
statement represents the conclusions
of the selecting official and must be
self-contained. It shall not incorporate
by reference the evaluations of the reviewers.
(7) The selecting official shall notify
each offeror whose proposal was not selected for award and explain generally
why the proposal was not selected. If
requested, the selecting official shall
arrange a debriefing under FAR 15.5,
with the participation of a contracting
officer.
(8) The selecting official shall forward to the contracting officer the following information:
(i) A copy of the NRA (This requirement may be waived in the case of a
grant award at the discretion of the
grant officer);
(ii) The results of the technical evaluation, including the total number of
proposals received, the selection statement, and the listing of proposal(s) selected for funding (These requirements
may be waived in the case of a grant
award at the discretion of the grant officer if the purchase request specifi-

cally references the NRA number and
states that the proposal forwarded for
funding was selected under the NRA.);
(iii) A description of any changes desired in any offeror’s statement of
work, including the reasons for the
changes and any effect on level of funding;
(iv) If a contract will be used to fund
the
proposal,
a
description
of
deliverables, including technical reports, and delivery dates, consistent
with the requirements of the NRA;
(v) A procurement request;
(vi) Comments on the offeror’s cost
proposal (either the selecting official’s
comments, which may be based on the
reviewer’s comments, or copies of the
reviewers’ comments with any different conclusions of the selecting official); these comments shall address the
need for and reasonableness of travel,
computer time, materials, equipment,
subcontracted items, publication costs,
labor hours, labor mix, and other costs;
and
(vii) A copy of the selected proposal
as originally submitted, any revisions,
and any correspondence from the successful offeror.
(9) The selecting official may provide
to the contracting officer copies of the
reviewers’
evaluations.
Reviewers’
names and institutions may be omitted.
(10) The selecting official may provide each offeror whose proposal was
selected for negotiation a notification
stating:
(i) The proposal has been selected for
negotiation;
(ii) The offeror’s business office will
be contacted by a contracting officer,
who is the only official authorized to
obligate the Government; and
(iii) Any costs incurred by the offeror
in anticipation of an award are at the
offeror’s risk.
(e) Award. The contracting officer
shall choose the appropriate award instrument. If a contract is selected, the
contracting officer shall——
(1) Advise the offeror that the Government contemplates entering into
negotiations; the type of contract contemplated; and the estimated award
date, anticipated effort, and delivery
schedule;

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National Aeronautics and Space Administration
(2) Send the offeror a model contract,
if necessary, including modifications
contemplated in the offeror’s statement of work, and request agreement
or identification of any exceptions (the
contract statement of work may summarize the proposed research, state
that the research shall be conducted in
accordance with certain technical sections of the proposal (which shall be
identified by incorporating them into
the contract by reference), and identify
any changes to the proposed research);
(3) Request the offeror to complete
and return certifications and representations and Standard Form 33, Solicitation, Offer, and Award, or other appropriate forms. If FAR 52.219–9, Small
Business Subcontracting Plan, is required for the resultant contract, request the offeror to provide a subcontracting plan.
(4) Conduct negotiations in accordance with FAR subparts 15.3 and 15.4,
as applicable;
(5) Award a contract; and
(6) Comply with FAR subparts 4.6 and
5.3 on contract reporting and synopses
of contract awards.
(f) Cancellation of an NRA. when program changes, program funding, or any
other reasons require cancellation of
an NRA, the office issuing the NRA
shall notify potential offerors by using
the mailing list of the NRA.
[62 FR 4469, Jan. 30, 1997, as amended at 62
FR 14017, Mar. 25, 1997; 63 FR 9967, Feb. 27,
1998. Redesignated and amended at 64 FR
48561, Sept. 7, 1999; 65 FR 12485, Mar. 9, 2000;
65 FR 46628, July 31, 2000; 65 FR 82297, Dec. 28,
2000; 66 FR 53547, Oct. 23, 2001; 67 FR 30604,
May 7, 2002]

1835.016–72 Foreign participation in
NRA proposals.
Foreign proposals or U.S. proposals
with foreign participation shall be
treated in accordance with 1835.016–70.
Additional guidelines applicable to foreign proposers are contained in the
provision at 1852.235–72, Instructions
for responding to NASA Research Announcements.
[64 FR 48561, Sept. 7, 1999]

1835.070 NASA contract clauses and
solicitation provision.
(a) The contracting officer must insert the clause at 1852.235–70, Center for

Pt. 1836

AeroSpace
Information—Final
Scientific and Technical Reports, in all research and development contracts,
interagency agreements, and in costreimbursement supply contracts involving research and development
work.
(b) The contracting officer shall insert the clause at 1852.235–71, Key Personnel and Facilities, in contracts
when source selection has been substantially predicated upon the possession by a given offer or of special capabilities, as represented by key personnel or facilities.
(c) The contracting officer shall ensure that the provision at 1852.235–72,
Instructions for Responding to NASA
Research Announcements, is inserted
in all NRAs. The instructions may be
supplemented, but only to the minimum extent necessary.
[62 FR 4469, Jan. 30, 1997, as amended at 65
FR 45307, July 21, 2000]

PART 1836—CONSTRUCTION AND
ARCHITECT-ENGINEER CONTRACTS
Subpart 1836.2—Special Aspects of
Contracting for Construction
Sec.
1836.203 Government estimate of construction costs.
1836.209 Construction contracts with architect-engineer firms.
1836.213 Special procedures for sealed bidding in construction contracting.
1836.213–3 Invitations for bids.
1836.213–4 Notice of Award. (NASA supplements paragraph (e))
1836.213–370 Additive and deductive items.

Subpart 1836.5—Contract Clauses
1836.513 Accident prevention.
1836.570 NASA solicitation provisions and
contract clause.

Subpart 1836.6—Architect-Engineer
Services
1836.602 Selection of firms for architect-engineer contracts.
1836.602–1 Selection criteria.
1836.602–2 Evaluation boards.
1836.602–4 Selection authority.
1836.602–5 Short selection process for contracts not to exceed the simplified acquisition threshold.
1836.602–70 Selection of architect-engineers
for master planning.

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1836.203

48 CFR Ch. 18 (10–1–02 Edition)

1836.603 Collecting data on and appraising
firms’ qualifications.
1836.605 Government cost estimate for architect-engineer work.

Subpart 1836.7—Standard and Optional
Forms for Contracting for Construction,
Architect-Engineer Services, and Dismantling, Demolition, or Removal of
Improvements
1836.702 Forms for use in contracting for architect-engineer services.

(3) In no case shall the firm that prepared the drawings and specifications
supervise and inspect, on behalf of the
Government, the construction of the
facility involved.
1836.213 Special procedures for sealed
bidding
in
construction
contracting.
[62 FR 36721, July 9, 1997]

1836.213–3

Invitations for bids.

Subpart 1836.70—Partnering
1836.7001 Definition.
1836.7002 General.
1836.7003 Policy.
1836.7004 NASA solicitation provision and
contract clause.
AUTHORITY: 42 U.S.C. 2473(c)(1)
SOURCE: 62 FR 4471, Jan. 30, 1997, unless
otherwise noted.

Subpart 1836.2—Special Aspects
of Contracting for Construction

[62 FR 36721, July 9, 1997]

1836.213–4 Notice of Award.
supplements paragraph (e))

(e) Contract delivery or performance
schedules, commencement of work, or
notices to proceed shall not be expressed in terms of a notice of award.
(See 1814.408–1).
[62 FR 36721, July 9, 1997]

1836.203 Government estimate of construction costs.(NASA supplements
paragraph (c))
(c)(i) If the acquisition is by sealed
bidding, the contracting officer shall
file a sealed copy of the detailed Government estimate with the bids until
bid opening. After the bids are read and
recorded, the contracting officer shall
read the estimate, and record it in the
same detail as the bids.
(ii) If the acquisition is by negotiation, the contracting officer may disclose the overall amount of the Government estimate after award upon request of offerors.
1836.209 Construction contracts with
architect-engineer firms.
(1) Except as indicated in paragraph
(2) of this section, the Assistant Administrator for Procurement (Code HS)
is the approval authority.
(2) A construction contract may be
awarded to the firm that designed the
project (or its subsidiaries or affiliates)
if the contract is awarded on the basis
of performance specifications for the
construction of a facility, and it requires the contractor to furnish construction drawings, specifications, or
site adaptation drawings of the facility.

1836.213–370
items.

Additive and deductive

When it appears that funds available
for a project may be insufficient for all
the desired features of construction,
the contracting officer may provide in
the invitation for bids for a first or
base bid item covering the work generally as specified and one or more additive or deductive bid items progressively adding or omitting specified features of the work in a stated order of
priority. In such case, the contracting
officer, before the opening of bids, shall
record in the contract file the amount
of funds available for the project and
determine the low bidder and the items
to be awarded in accordance with the
provision at 1852.236–71, Additive or Deductive Items.
[62 FR 36721, July 9, 1997. Redesignated at 64
FR 5621, Feb. 4, 1999]

Subpart 1836.5—Contract Clauses
1836.513

Accident prevention.

The contracting officer must insert
the clause at 1852.223–70, Safety and
Health, in lieu of FAR clause 52.236–13,
Accident Prevention, and its Alternate
I.
[67 FR 17016, Apr. 9, 2002]

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National Aeronautics and Space Administration
1836.570 NASA solicitation provisions
and contract clause.
(a) The contracting officer shall insert the provision at 1852.236–71, Additive or Deductive Items, in invitations
for bids for construction when it is desired to add or deduct bid items to
meet available funding.
(b) The contracting officer shall insert the provision at 1852.236–72, Bids
with Unit Prices, in invitations for bids
for construction when the invitation
contemplates unit prices of items.
(c) The contracting officer shall insert the clause at 1852.236–73, Hurricane
Plan, in solicitations and contracts for
construction at sites that experience
hurricanes.
(d) The contracting officer shall insert the provision at 1852.236–74, Magnitude of Requirement, in solicitations
for construction. Insert the appropriate
estimated dollar range in accordance
with FAR 36.204.

Subpart 1836.6—ArchitectEngineer Services
1836.602 Selection of firms for architect-engineer contracts.
1836.602–1 Selection criteria. (NASA
supplements paragraph (a))
(a)(2) The evaluation of specialized
experience and technical competence
shall be limited to the immediately
preceding ten years.
(4) The evaluation of past performance shall be limited to the immediately preceding ten years.
(6) The architect-engineer selection
board may also establish evaluation
criteria regarding the volume of work
previously awarded to the firm by
NASA, with the object of effecting an
equitable distribution of contracts
among
qualified
architect-engineer
firms, including minority-owned firms
and firms that have not had prior
NASA contracts.
[62 FR 4471, Jan. 30, 1997, as amended at 66
FR 53548, Oct. 23, 2001]

1836.602–2 Evaluation boards. (NASA
supplements paragraph (a))
(a) Installations shall establish an architect-engineer selection board to be
composed of the selection authority
and at least three voting members.

1836.602–70

Membership shall at least include: one
currently registered architect or professional engineer, who shall serve as
the board chairperson; an official from
the requiring office; if appropriate, a
technical official familiar with any
unique subject matter critical to the
requirement; and a procurement official (a contracting officer, if feasible)
as an ad hoc advisor to the board.
Where appropriate, the procurement
official may serve as a voting member.
Non-Government employees shall not
be appointed as voting members.
1836.602–4 Selection authority. (NASA
supplements paragraph (a))
(a) The selection authority shall be
appointed in accordance with installation procedures.
1836.602–5 Short selection process for
contracts not to exceed the simplified acquisition threshold.
The procedures at FAR 36.602–5 (a) or
(b) may be used at the discretion of the
selection authority.
1836.602–70 Selection of architect-engineers for master planning. (NASA
supplements paragraphs (a) and
(b))
(a) Definition of master plan. A master
plan is an integrated series of documents presenting in graphic, narrative,
and tabular form the present composition of the installation and the plan for
its orderly and comprehensive development to perform its various missions in
the most efficient and economical
manner.
(b) Selection.
(1) Selection of an Architect-Engineer for the development of a master
plan in connection with the establishment of a new NASA activity or installation shall be made by the Associate
Administrator having institutional responsibility. The report of the architect-engineer selection board will be
concurred in at NASA Headquarters by
the Assistant Administrator for Management Systems, the Assistant Administrator for Procurement, the Chief
Financial Officer, and the General
Counsel.
(2) The Assistant Administrator for
Management Systems shall be responsible for the architect-engineer selection board report required by FAR

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1836.603

48 CFR Ch. 18 (10–1–02 Edition)

36.602–3(d) before presentation to the
Associate Administrator having institutional responsibility.
1836.603 Collecting data on and appraising firms’ qualifications.
The
architect-engineer
selection
boards (see 1836.602–2) are designated as
NASA’s evaluation boards for the purposes of FAR 36.603.
1836.605 Government cost estimate for
architect-engineer work. (NASA
supplements paragraph (b))
(b) The contracting officer may disclose the overall amount of the Government estimate after award upon request of offerors.

Subpart 1836.7—Standard and
Optional Forms for Contracting for Construction, Architect-Engineer
Services,
and Dismantling, Demolition,
or Removal of Improvements
1836.702 Forms for use in contracting
for
architect-engineer
services.
(NASA supplements paragraph (a))
(a)(i) Instructions for completing
Standard Form 252, Architect-Engineer
Contract, are as follows:
(a) Block 5-Project Title and Location. Include a short description of the
construction project and the estimated
cost of constructing the facilities for
the project. If the space provided is insufficient, include a more detailed description in the contract’s specification/work statement and identify the
location of the more detailed description in Block 10.
(b) Block 6-Contract For (General description of services to be provided).
Include a brief description of the services and state that the are fully set out
in the specification/work statement.
Clearly specify the date by which design services must be completed. If supervision and inspection services during construction are to be acquired,
clearly specify the date by which they
must be completed and add a statement that the Government may extend
the period for their performance as provided in the Changes clause of the contract.
(c) Block 7-Contract Amount. If the
contract is for both design and super-

vision and inspection services, set out
the amounts for each effort separately.
(ii) The services to be furnished by an
architect-engineer should be carefully
defined during negotiation of the contract and a statement of them inserted
in the contract’s specification/work
statement. The statement should clearly and concisely set forth the nature
and extent of the services and include
any special services, such as the nature
and extent of subsurface exploration
prior to designing foundations. A similar statement of supervision and inspection services should be inserted in
the specification/work statement if supervision and inspection services are to
be acquired.

Subpart 1836.70—Partnering
SOURCE: 63 FR 44170, Aug. 18, 1998, unless
otherwise noted.

1836.7001

Definition.

Partnering means a relationship of
open communication and close cooperation that involves both Government and Contractor personnel working together for the purpose of establishing
a
mutually
beneficial,
proactive, cooperative environment
within which to achieve contract objectives and resolve issues and implementing actions as required.
1836.7002

General.

(a) The establishment of a partnering
environment usually leads to higher
quality products completed more
quickly at lower overall costs and with
fewer accidents and litigation.
(b) The use of partnering is encouraged as it has been shown to reduce the
average contract cost and schedule
growth and to reduce contract claims
and litigation.
(c) Partnering is a voluntary contract relationship within the management process that is not to be used to
unofficially alter terms of the contract.
1836.7003

Policy.

(a) Partnering should be used on a
contract when the contracting officer,
in coordination with the project manager, determines that the benefits to be

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National Aeronautics and Space Administration
achieved from its use are expected to
be greater than the costs.
(b) In determining whether the benefits of partnering are greater than the
costs, the following factors should be
considered:
(1) The estimated dollar value of the
contract;
(2) The complexity of the work to be
performed;
(3) The contemplated length of the
contract; and
(4) The estimated costs to be incurred
in conducting the partnership development and team building initial and follow-up workshops.
1836.7004 NASA solicitation provision
and contract clause.
The contracting officer may insert a
clause substantially the same as stated
at 1852.236–75, Partnering for Construction Contracts, in solicitations and
contracts for construction, when it has
been determined in accordance with
1836.7003 that the benefits to be derived
from partnering exceed the costs.

1837.170

service contract employees’ pension
rights and benefits.
1837.104 Personal services contracts.
(NASA supplements paragraph (b))
(b) Section 203(c)(9) of the National
Aeronautics and Space Act of 1958 (42
U.S.C. 2473(c)(9)) authorizes NASA ‘‘to
obtain services as authorized by Section 3109 of Title 5, United States
Code.’’ It is NASA policy to obtain the
personal services of experts and consultants by appointment rather than
by contract. The policies, responsibilities, and procedures pertaining to the
appointment of experts and consultants are in NPG 3300.1, Appointment of
Personnel To/From NASA, Chapter 4,
Employment of Experts and Consultants.
[62 FR 4472, Jan. 30, 1997, as amended at 64
FR 12485, Mar. 9, 2000; 66 FR 53548, Oct. 23,
2001]

1837.110 Solicitation
contract clauses.

provisions

1837.110–70 NASA solicitation
sion and contract clauses.

PART 1837—SERVICE
CONTRACTING
Subpart 1837.1—Service Contracts—
General
Sec.
1837.101 Definitions.
1837.104 Personal services contracts.
1837.110 Solicitation provisions and contract clauses.
1837.110–70 NASA solicitation provision and
contract clauses.
1837.170 Pension portability.

Subpart 1837.2—Advisory and Assistance
Services
1837.203 Policy.
1837.204 Guidelines for determining availability of personnel.
AUTHORITY: 42 U.S.C. 2473(c)(1).
SOURCE: 62 FR 4472, Jan. 30, 1997, unless
otherwise noted.

1837.101 Definitions.
Pension portability means the recognition and continuation in a successor
service contract of the predecessor

[62 FR 4472, Jan. 30, 1997, as amended at 62
FR 36721, July 9, 1997; 62 FR 58688, Oct. 30,
1997]

Pension portability.

(a) It is NASA’s policy not to require
pension portability in service contracts. However, pension portability requirements may be included in solicitations, contracts, or contract modifications for additional work under the
following conditions:

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(a) The contracting officer shall insert the clause at 1852.237–70, Emergency Evacuation Procedures, in solicitations and contracts for on-site support services where emergency evacuations of the NASA installation may
occur, e.g., snow, hurricanes, tornadoes, earthquakes, or other emergencies.
(b) The contracting officer shall insert the clause at 1852.237–71, Pension
Portability, in solicitations, contracts
or negotiated contract modifications
for additional work when the procurement officer makes the determination
in 1837.170(a)(2).

1837.170

Subpart 1837.1—Service
Contracts—General

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1837.203

48 CFR Ch. 18 (10–1–02 Edition)

(1)(i) There is a continuing need for
the same or similar services for a minimum of five years (inclusive of options), and, if the contractor changes, a
high percentage of the predecessor contractor’s employees are expected to remain with the program; or
(ii) The employees under a predecessor contract were covered by a portable pension plan, a follow-on contract
or a contract consolidating existing
services is awarded, and the total contract period covered by the plan covers
a minimum of five years (including
both the predecessor and successor contracts); and
(2) The procurement officer determines in writing, with full supporting
rationale, that such a requirement is in
the Government’s best interest. The
procurement officer shall maintain a
record of all such determinations.
(b) When pension portability is required, the plan shall comply with the
requirements of the clause at 1852.237–
71, Pension Portability, (see 1837.110–
70(b)), and the contract shall also include a clear description of the plan,
including service, pay, liabilities, vesting, termination, and benefits from
prior contracts.

Subpart 1837.2—Advisory and
Assistance Services
1837.203 Policy. (NASA
paragraph (c))

1837.204 Guidelines for determining
availability of personnel. (NASA
supplements paragraphs (a), (b), (c),
and (e))
(a)(i) Outside peer review evaluators
may be used to evaluate SBIR, STTR,
NRA, AO, and unsolicited proposals
without making the determination of
non-availability.
(ii) For all other actions, the NASA
official one level above the NASA program official responsible for the evaluation shall make the determination,
with the concurrence of the legal office. The contracting officer shall ensure that a copy of the determination
is in the contract file prior to issuance
of a solicitation.
(b) The official designated in paragraph (a)(ii) of this section is responsible for the actions required in FAR
37.204(b).
(c) The agreement shall be made by
the program official responsible for the
evaluation and the contracting officer.
(e) The Assistant Administrator for
Procurement (Code HS) is the approval
authority for class determinations. The
class determination request shall include the assessment required by FAR
37.204(b).

PART 1839—ACQUISITION OF
INFORMATION TECHNOLOGY

supplements

(c) Advisory and assistance services
of individual experts and consultants
shall normally be obtained by appointment rather than by contract (see NPG
3300.1, Appointment of Personnel To/
From NASA, Chapter 4, Employment of
Experts and Consultants).
[62 FR 4472, Jan. 30, 1997, as amended at 64
FR 51079, Sept. 21, 1999; 66 FR 53548, Oct. 23,
2001]

Subpart 1829.1—General
Sec.
1839.105 Privacy.
1839.107 Contract clause.
1839.107–70 NASA contract clause.
AUTHORITY: 42 U.S.C. 2473(c)(1)
SOURCE: 62 FR 4473, Jan. 30, 1997, unless
otherwise noted.

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National Aeronautics and Space Administration

Subpart 1839.1—General
1839.105

Privacy.

See 1804.470.
1839.107

Contract clause.

[62 FR 4473, Jan. 30, 1997. Redesignated at 62
FR 36721, July 9, 1997]

1839.107–70

NASA contract clause.

(a)(1) The contracting officer shall
insert the clause substantially as stated at 1852.239–70, Alternate Delivery

1839.107–70

Points, in solicitations and contracts
for information technology when:
(i) An indefinite delivery/indefinite
quantity contract will be used or when
the contract will include options for
additional quantities; and
(ii) Delivery is F.O.B. destination to
the contracting activity.
(2) When delivery is F.O.B. origin and
Government bills of lading (GBL) are
used, the contracting officer shall use
the clause with its Alternate I.
[62 FR 4473, Jan. 30, 1997. Redesignated at 62
FR 36721, July 9, 1997]

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SUBCHAPTER G—CONTRACT MANAGEMENT
PART 1840 [RESERVED]
PART 1841—ACQUISITION OF
UTILITY SERVICES
Subpart 1841.2—Acquiring Utility Services
Sec.
1841.203 GSA assistance.
1841.205 Separate contracts.
1841.205–70 Authorization for acquisition of
wellhead natural gas.

Subpart 1841.3—Requests for Assistance
1841.301

Requirements.

governing the acquisition of supplies.
Redelivery of the gas from the city
gate to the NASA facility is considered
a utility service since it is provided
only by the locally franchised utility.
GSA is responsible for obtaining an appropriate contract for the redelivery
service in accordance with FAR 41.204.
(b) GSA provides assistance to Federal agencies in the acquisition of natural gas wellhead supplies. Contracting
officers may obtain assistance from
GSA in the acquisition of wellhead natural gas by contacting GSA at the address specified in FAR 41.301(a).

Subpart 1841.4—Administration
1841.402 Rate changes and regulatory intervention.

Subpart 1841.3—Requests for
Assistance

Subpart 1841.5—Solicitation Provision and
Contract Clauses

1841.301 Requirements. (NASA supplements paragraph (a))

1841.501 Solicitation provision and contract
clauses.
1841.501–70 NASA contract clause.

(a) Procurement officers shall submit
requests for delegation of contracting
authority directly to the cognizant
GSA regional office after coordinating
with the cognizant center technical office.

AUTHORITY: 42 U.S.C. 2473(c)(1).
SOURCE: 62 FR 4474, Jan. 30, 1997, unless
otherwise noted.

Subpart 1841.4—Administration

Subpart 1841.2—Acquiring Utility
Services
1841.203 GSA assistance. (NASA supplements paragraph (a))
(a) Before soliciting technical assistance, technical personnel shall contact
the Headquarters Environmental Management Division (Code JE).
1841.205

Separate contracts.

1841.205–70 Authorization for acquisition of wellhead natural gas.
(a) Acquisition of wellhead natural
gas and interstate transportation of
the natural gas to locally franchised
distribution utility companies’ receipt
points (city gate) is considered the acquisition of supplies rather than the
acquisition of public utility services
described in FAR Part 41. Therefore,
wellhead natural gas and interstate
transportation of such gas should be
obtained directly by NASA under applicable authorities and FAR procedures

1841.402 Rate changes and regulatory
intervention. (NASA supplements
paragraph (b))
(b) A copy of all correspondence with
GSA shall be provided to the Headquarters Office of Procurement (Code
HS) at the time of its submittal to the
GSA regional office.

Subpart 1841.5—Solicitation
Provision and Contract Clauses
1841.501 Solicitation
contract clauses.
1841.501–70

provision

NASA contract clause.

The contracting officer shall insert
the clause at 1852.241–70, Renewal of
Contract, in solicitations and contracts
for utility services if it is desirable
that the utility service be provided
under the same terms and conditions
for more than 1 year.

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National Aeronautics and Space Administration

Subpart 1842.15—Contractor Performance
Information

PART 1842—CONTRACT ADMINISTRATION AND AUDIT SERVICES
Subpart 1842.1—Contract Audit Services
Sec.
1842.101 Contract audit responsibilities.
1842.102 Assignment of contract audit services.
1842.102–70 Review of administration and
audit services.
1842.170 Assignment of NASA personnel at
contractor plants.

Subpart 1842.2—Contract Administration
Services

1842.1501
1842.1502
1842.1503

General.
Policy.
Procedures.

Subpart 1842.70—Additional NASA
Contract Clauses
1842.7001 Observance of legal holidays.
1842.7002 Travel outside of the United
States.
1842.7003 Emergency medical services and
evacuation.

Subpart 1842.71—Submission of Vouchers

1842.202 Assignment of contract administration.
1842.202–70 Retention of contract administration.
1842.270 Contracting officer technical representative (COTR) delegations.
1842.271 NASA clause.

1842.7101

Submission of vouchers.

Subpart 1842.72—NASA Contractor
Financial Management Reporting
1842.7201
1842.7202

Subpart 1842.3—Contract Administration
Office Functions
1842.302

1842.101

General.
Contract clause.

Subpart 1842.73—Audit Tracking and
Resolution

Contract administration functions.
1842.7301 NASA
system.

Subpart 1842.5—Postaward Orientation
1842.503

Postaward conferences.

Subpart 1842.7—Indirect Cost Rates

Subpart 1842.8—Disallowance of Costs

follow-up

1842.7401 Earned Value Management Systems (EVMS).
1842.7402 Solicitation provisions and contract clauses.
AUTHORITY: 42 U.S.C. 2473(c)(1).
SOURCE: 62 FR 14017, Mar. 25, 1997, unless
otherwise noted.

Disallowing costs after incurrence.

Subpart 1842.1—Contract Audit
Services

Subpart 1842.12—Novation and Changeof-Name Agreements
1842.1203 Processing agreements.
1842.1203–70 DOD processing of novation and
change-of-name agreements on behalf of
NASA.

Subpart 1842.13—Suspension of Work,
Stop-Work Orders, and Government
Delay of Work
1842.1305

audit

Subpart 1842.74—Earned Value
Management

1842.705 Final indirect cost rates.
1842.705–1 Contracting officer determination
procedure.
1842.708 Quick–closeout procedure.
1842.708–70 NASA
quick-closeout
procedures.

1842.803

external

Contract clauses.

Subpart 1842.14—Traffic and Transportation
Management
1842.1405 Discrepancies incident to shipment
of supplies.

1842.101 Contract
ities.

audit

responsibil-

(a)(i) The Defense Contract Audit
Agency (DCAA) has been designated as
the DOD agency responsible for the
performance of audit functions for
NASA contracts, except those awarded
to educational institutions for which
other agencies have audit cognizance
under OMB Circular No. A–133, those
with Canadian contractors, and those
for which NASA will perform audits.
(ii) Cross-servicing arrangements are
the responsibility of the Headquarters
Office of External Relations (Code ID).

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1842.102

48 CFR Ch. 18 (10–1–02 Edition)

Contracting officers should direct questions to the Headquarters Office of Procurement (Code HK).
[62 FR 14017, Mar. 25, 1997, as amended at 63
FR 3652, Jan. 26, 1998]

1842.102 Assignment of contract audit
services.
1842.102–70 Review of administration
and audit services.
(a) NASA installations shall assess
their delegations to DOD semiannually
to determine changes in delegation
patterns that could (1) result in significant changes in DOD manpower requirements or (2) have other important
impacts on DOD contract administration activities. Events such as major
program
cutbacks
or
expansions,
changes in locations of major programs, and sizable new acquisitions
should be considered in the assessment.
(b) A summary, including a negative
summary, of the Center’s assessment
shall be submitted by the procurement
officer to the Headquarters Office of
Procurement (Code HK) by not later
than January 15 and June 15 of the fiscal year. The summary shall include—
(1) A description of the change in
work requirements or delegation pattern;
(2) The estimated duration of the impact;
(3) The results of discussions with affected DOD contract administration offices including agreement and disagreements on the predicted impact on DOD
in terms of changes in manpower requirements or other costs; and
(4) Any other significant impact on
DOD or NASA resources or contract
performance risk.
[62 FR 14017, Mar. 25, 1997, as amended at 63
FR 3652, Jan. 26, 1998]

1842.170 Assignment of NASA personnel at contractor plants.
(a)(1) NASA personnel normally shall
not be assigned at or near a contractor’s facility to perform any contract
administration functions listed in FAR
42.302(a). Before such an assignment is
made, a written request shall be forwarded to the cognizant program director for approval with the concurrence
of the Assistant Administrator for Procurement (Code HS). The following

supporting information shall be forwarded with the request to make the
assignment:
(i) A statement of the special circumstances that necessitate the assignment.
(ii) The contract administration
serves to be performed.
(iii) A summary of any discussions
held with the cognizant contract administration organization.
(iv) A staffing plan covering three
years or such shorter period as may be
appropriate.
(2) The provisions of this paragraph
(a) do not apply to NASA audit personnel assigned to the field installations, to NASA technical personnel
covered by 1842.101 and paragraph (b) of
this section, unless they are performing any contract administration
functions listed in FAR 42.302(a), or to
personnel assigned to contractors’
plants on NASA or other Federal installations.
(b) NASA may assign technical personnel (such as quality assurance, reliability, or engineering representatives)
to contractors’ plants or laboratories
to provide direct liaison with NASA
and technical assistance and guidance
to the contractor and DOD. The duties
and responsibilities of these technical
representatives shall be clearly defined
and shall not conflict with, duplicate,
or overlap with functions delegated to
DOD personnel. NASA shall advise appropriate DOD and contractor organizations of the duties and responsibilities of NASA technical personnel.
(c) When a NASA resident office, including any assigned technical personnel, and a DOD contract administration office are performing contract
administration functions for NASA
contracts at the same contractor’s facility, the two offices shall execute a
written agreement clearly establishing
the relationship between the two organizations and the contractor. The
agreement should eliminate duplication in the performance of contract administration functions and minimize
procedural misunderstandings between
the two organizations. Such agreements shall be consistent with existing
delegations to the contract administration offices concerned and shall specify

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National Aeronautics and Space Administration
the relationship of NASA nonprocurement resident personnel to their DOD
and contractor counterparts if such
personnel will be involved in any aspect of contract administration.

Subpart 1842.2—Contract
Administration Services
1842.202 Assignment of contract administration. (NASA supplements
paragraphs (b) and (d))
(b) Withholding normal functions. (i)
The following functions are normally
retained by the contracting office.
(A) Approval of the final voucher
(FAR 42.302(a)(7)).
(B) Countersigning NASA Form 456,
Notice of Contract Costs Suspended
and/or Disapproved (FAR 42.302(a)(8)).
(C) Issuance of decisions under the
disputes clause (FAR 42.302(a)(10)).
(D)
Contract
payment
(FAR
42.302(a)(13)).
(E) Execution of supplement agreements involving spare parts or other
items selected through provisioning
procedures. However, delegation of the
negotiation of supplemental agreements for spare parts and other items
and forwarding for approval and signature of the NASA contracting officer is
permitted (FAR 42.302(a)(22)).
(F) Executive of supplemental agreements definitizing change orders (see
FAR 42.302(b)(1)).
(G) Issuing termination notices and
executing supplemental agreements for
settlement of termination for default
or for convenience of the Government.
However, delegation of the negotiation
of termination settlements and forwarding for approval and signature of
the NASA contracting officer is permitted using NASA Form 1432 (FAR
42.302(a)(23)).
(H) Consent to placement of subcontracts under FAR 42.302(a)(51). (See
1844.202–1(a)).
(d) Transmittal and documentation.
In addition to the instructions at FAR
42.202(d) (1) through (4), contracting officers shall—
(i) Send delegations to DOD contract
administration offices in accordance
with the instructions in the DOD Directory of Contract Administration
Services Components (DLAH 4105.4).

1842.202

(ii) At time of contract award, prepared and forward NASA Form 1430,
Letter of Contract Administration Delegation, General, to the contract administration office. NASA Form 1430A,
Letter of Contract Administration,
Special Instructions, will supplement
the NASA Form 1430, to modify previously delegated functions and provide additional or particular information considered necessary to ensure
clear understanding of all delegated
functions.
(iii) Forward NASA Form 1431, Letter
of Acceptance of Contract Administration, with each NASA Form 1430 or
1430A. Contracting officers shall use
the returned NASA Form 1431 as contract file documentation that the delegation has been accepted, modified or
rejected by the contract administration office and as a reference for points
of contract for each of the functional
areas delegated.
(iv) Use NASA Form 1433, Letter of
Audit Delegation, to delegate the audit
function and to amend previous delegations. Distribute copies of the contract
and NASA Form 1433 as follows:
(A) Audit office: One copy of the contract and three NASA Forms 1433.
When the Department of Health and
Human Services is designated as the
audit office, item 12 on NASA Form
1433 shall be marked ‘‘Not applicable.’’
(B) Contractor: One NASA Form 1433.
(C) Cognizant NASA fiscal or financial
management office: One NASA Form
1433.
(v) For contracts with the Canadian
Commercial Corporation (CCC), audits
are automatically arranged by the Department
of
Defense
Production
(Canada) (DDP) in accordance with
agreements between NASA and DDP.
Upon advice from DDP, CCC will certify the invoice and forward it with
Standard Form 1034, Public Voucher,
to the contracting officer for further
processing and transmittal to the fiscal
or financial management officer.
(vi) For contracts placed directly
with Canadian firms, audits are requested by the contracting officer from
the Audit Services Branch, Comptroller of the Treasury, Department of
Finance, Ottawa, Ontario, Canada. Invoices are approved by the auditor on a
provisional basis pending completion of

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1842.202–70

48 CFR Ch. 18 (10–1–02 Edition)

the contract and final audit. These invoices, accompanied by SF 1034, are
forwarded to the contracting officer for
further processing and transmittal to
the fiscal or financial management officer. Periodic advisory audit reports
are furnished directly to the contracting officer.
[62 FR 14017, Mar. 25, 1997, as amended at 64
FR 51079, Sept. 21, 1999]

1842.202–70 Retention of contract administration. (NASA supplements
paragraph (a))
(a) The assignment of contract administration is optional for the following contracts:
(1) Research and development study
contracts not involving deliverable
hardware or Government furnished
property.
(2) Contracts with delivery schedules
for 90 days or less.
(3) Purchase orders without Government source inspection requirements.
(4) Contracts requiring only on-site
performance.
(5) Contracts requiring work in the
vicinity of the awarding center where
DOD contract administration services
are not reasonably available.
[62 FR 14017, Mar. 25, 1997. Redesignated and
amended at 63 FR 15320, Mar. 31, 1998]

1842.270 Contracting officer technical
representative (COTR) delegations.
(a) The cognizant contracting officer
may appoint a qualified Government
employee to act as their representative
in managing the technical aspects of a
particular contract. If necessary, the
contracting officer may appoint an alternate COTR to act during short absences of the COTR. Technical organizations are responsible for ensuring
that the individual they recommend to
the contracting officer possesses training, qualifications and experience commensurate with the duties and responsibilities to be delegated and the nature of the contract.
(b) NASA Form 1634, Contracting Officer Technical Representative (COTR)
Delegation, shall be used to appoint
COTRs. A COTR’s duties and responsibilities may not be redelegated by
the COTR and the COTR may be held
personally liable for unauthorized acts.
However, this does not prohibit the

COTR from receiving assistance for the
purpose of monitoring contractor
progress and gathering information.
When an individual is appointed as a
COTR on more than one contract, separate delegations shall be issued for
each contract. A separate NASA Form
1634 will be used to appoint an alternate COTR.
(c) A COTR delegation remains in effect throughout the life of the contract
unless canceled in writing by the cognizant contracting officer or at any
level above that contracting officer.
The contracting officer may modify
the delegation only by issuance of a
new delegation canceling and superseding the existing delegation.
(d) A COTR shall not be authorized to
initiate procurement actions or in any
way cause a change to the contract or
increase the Government’s financial
obligations. However, delegations may
be made to construction contract
COTRs to sign emergency on-site
change orders with an estimated value
not to exceed the value specified in
writing by the contracting officer in
the NASA Form 1634 but in no event to
exceed $25,000.
(e) Each COTR shall acknowledge receipt and accept the delegation by
signing the original delegation letter.
The original of the COTR delegation
letter shall be filed in the applicable
contract file. Copies of the signed
COTR delegation letter shall be distributed to the COTR, the contractor,
and each cognizant contract administration office. Acknowledgment and
distribution for terminations of COTR
delegations and COTR delegations
which revise authority, duties and responsibilities shall follow the same
rules.
(f)(1) Mandatory training for COTRs
and their alternates shall include the
following core topic areas:
(i) Contracting authority and contract modifications (including non-personal services and inherently governmental functions);
(ii) Inspection and surveillance;
(iii) Changes and performance-based
contracting;
(iv) Contract financial and property
management (including ‘‘Limitation of
Cost’’ clause, Anti-Deficiency Act,
‘‘Limitation of Funds’’ clause); and

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National Aeronautics and Space Administration
(v) Disputes.
(2) Procurement officers are responsible for assuring that the course(s)
utilized by their center address the
mandatory core topics in sufficient detail for the purpose of COTR training.
Procurement officers may accept the
following training alternative(s) in satisfaction of comparable requirement(s)
specified in paragraph (f)(1) of this section:
(i) Another center’s COTR training;
or
(ii) Annual ethics training.
(g) The contracting officer shall
verify that the COTR has received the
mandatory training before signing
NASA Form 1634. If an urgent need
arises for the appointment of a COTR
and no trained and otherwise qualified
individual is available, then the procurement officer may make a temporary COTR appointment not to exceed six months. Temporary appointments must be so identified and clearly
reflect the appointment expiration
date.
(h) No technical direction may be
issued by a COTR relative to performance-based contract requirements or
when serving under a temporary appointment.
[62 FR 14017, Mar. 25, 1997, as amended at 64
FR 19928, Apr. 23, 1999; 65 FR 12485, Mar. 9,
2000]

1842.271

NASA clause.

Insert the clause at 1852.242–70, Technical Direction, when paragraph 3(m)
of the NASA Form 1634 specifically authorizes a COTR to issue technical direction.

Subpart 1842.3—Contract
Administration Office Functions

1842.705–1

Guidelines for EVMS, is normally delegated to DCMA.
[64 FR 10574, Mar. 5, 1999, as amended at 66
FR 53548, Oct. 23, 2001]

Subpart 1842.5—Postaward
Orientation
1842.503 Postaward
conferences.
(NASA paragraphs (1) and (2))
(1) A postaward conference shall be
held with representatives of the contract administration office when—
(i) A contract is expected to exceed
$10,000,000;
(ii) Contract performance is required
at or near a NASA installation or
NASA-controlled launch site;
(iii) The delegation will impose an
abnormal demand on the resources of
the contract administration office receiving the delegation; or
(iv) Complex contract management
issues are expected, particularly risk
management areas identified during
program and acquisition planning, e.g.,
significant or unusual mission success,
technical, cost, schedule, safety, security, occupational health, environmental protection, and export control
risks.
(2) Procurement officer approval is
required to waive a post-award planning conference for contracts meeting
any of the criteria in paragraph (1) of
this section. The request for procurement officer approval to waive a postaward conference shall address action
taken and planned to ensure effective
communication with the contract administration office during the performance of the contract.
[62 FR 14017, Mar. 25, 1997, as amended at 65
FR 37060, June 13, 2000]

Subpart 1842.7—Indirect Cost
Rates

1842.302 Contract
administration
functions. (NASA supplements paragraph (a))

1842.705

(a) In addition to the responsibilities
listed in FAR 42.302(a), responsibility
for reviewing earned value management system (EVMS) plans and
verifying initial and continuing contractor compliance with NASA and
DoD EVMS criteria and conformity
with ANSI/EIA Standard 748, Industry

1842.705–1 Contracting officer determination procedure.
(b) Procedures.
(3)(i) When NASA is not the cognizant Federal agency, NASA should
participate with the cognizant contracting officer (or cognizant Federal
agency official) in the final indirect

Final indirect cost rates.

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1842.708

48 CFR Ch. 18 (10–1–02 Edition)

cost rate determination procedure
where the issues involved would have a
significant financial impact on the
agency. The NASA participant should
be a representative from that installation providing the preponderance of
NASA funding. If a determination is
made that NASA’s participation is not
warranted, that decision must be communicated to the cognizant contracting officer (or cognizant Federal
agency official).
(ii) When NASA is the cognizant Federal agency, settlement of indirect
costs should be conducted by the cognizant
NASA
contracting
officer
(normally from the installation providing the preponderance of NASA
funding).
[65 FR 63807, Oct. 25, 2000]

1842.708 Quick–closeout procedure.
(a)(2)(ii) The 15 percent parameter
does not apply to NASA contracts. Instead, perform a risk analysis that
takes into consideration the contractor
systems
identified
in
FAR
42.708(a)(2)(ii), as well as the concerns
of the cognizant contract auditor, and
any other pertinent information.
[62 FR 36228, July 7, 1997]

1842.708–70 NASA quick-closeout procedures.
After a decision is made that the use
of quick closeout is appropriate, the
contracting officer shall:
(a) Obtain a written agreement from
the contractor to participate in the
quick-closeout process under FAR
42.708 for the selected contract(s).
(b) Require the contractor to submit
a final voucher and a summary of all
costs by cost element and fiscal year
for the contract(s) in question, as well
as a copy of the contractor’s final indirect cost rate proposal for each fiscal
year quick closeout is involved.
(c) Notify the cognizant audit activity in writing, identify the contract(s),
and request: (1) the contractor’s indirect cost history covering a sufficient
number of fiscal years to see the trend
of claimed, audit questioned, and disallowed costs; and (2) any other information that could impact the decision
to use quick-closeout procedures. Indirect cost histories should be requested

from the contractor only when the cognizant audit activity is unable to provide the information.
(d) Review the contract(s) for indirect cost rate ceilings and any other
contract limitations, as well as the
rate history information.
(e) Establish final indirect cost rates
using one of the following rates:
(1) The contract’s ceiling indirect
cost rates, if applicable, and if less
than paragraphs (e)(2) through (e)(6) of
this section.
(2) The contractor’s claimed actual
rates adjusted based on the contractor’s indirect cost history, if less than
paragraphs (e)(3) through (e)(6) of this
section.
(3) Recommended rates from the cognizant audit agency, the local pricing
office, another installation pricing office, or other recognized knowledgeable
source.
(4) The contractor’s negotiated billing rates, if less than paragraphs (e)(5)
or (e)(6) of this section.
(5) The previous year’s final rates.
(6) Final rates for another fiscal year
closest to the period for which quickcloseout rates are being established.
(f) If an agreement is reached with
the contractor, obtain a release of all
claims and other applicable closing
documents.
(g) For those contracts where the indirect cost rate negotiation function
was delegated or falls under the cognizance of another agency, send a copy
of the agreement to that office.

Subpart 1842.8—Disallowance of
Costs
1842.803 Disallowing
costs
after
incurrance. (NASA supplements
paragraph (b))
(b) Auditor receipt of vouchers. (1)
NASA has designated the contract
auditor as the contracting officer’s representative for—
(A) Reviewing vouchers received directly from contractors;
(B) Approving vouchers for provisional payment and sending them to
the disbursing office;
(C)
Reviewing
completion/final
vouchers and sending them to the designated contracting officer for approval.

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National Aeronautics and Space Administration
(D) Authorizing direct submission of
interim vouchers for provisional payment to disbursing offices for contractors with approved billing systems.
(2)(A) When contract costs are questioned, the auditor shall prepare and
send to the cognizant contracting officer NASA Form 456, Notice of Contract
Costs Suspended and/or Disapproved.
(B) After coordination with other
NASA and Federal agency contracting
officers administering contracts with
the same contractor under which a
NASA Form 456 or a DCAA Form 1 has
been issued for the same items of cost,
the NASA contracting officer shall
take one of the following actions:
(a) Assign a notice number and sign
the NASA Form 456.
(b) Issue a new NASA Form 456 suspending the costs rather than disapproving them pending resolution of
the issues.
(c) Return the unsigned NASA Form
456 to the auditor with a detailed explanation of why the suspension or disapproval is not being signed, and process the contractor’s claim for payment.
(C) When more than one NASA contract is affected by a notice, the NASA
contracting officer with the largest
amount of contract dollars affected is
responsible for coordination of the
NASA Form 456 with the other contracting officers, including those of
other Federal agencies, listed in the
notice.
(D) An original and three copies
(which includes two acknowledgment
copies, one each for return to the contracting officer and the auditor) of the
NASA Form 456 shall be sent to the
contractor by certified mail, return receipt requested; one copy shall be attached to the Standard Form 1034 and
each copy of the Standard Form 1034A
on which the deduction for the suspension/disapproval is made.
(E)(a) If the amount of the deduction
is more than the amount of the public
voucher, the installment method of deduction shall be applied to the current
and subsequent public vouchers until
the amount is fully liquidated. The deductions on any voucher may not exceed the voucher amount to avoid processing of a voucher in a credit amount.
Public voucher(s) with zero amounts

1842.1203–70

must be forwarded to the fiscal or financial management office for appropriate action.
(b) If deductions are in excess of contractor claims, recovery may be made
through a direct refund from the contractor, in the form of a check payable
to NASA, or by a set-off deduction
from the voucher(s) submitted by the
contractor under any other contract
unless those contracts contain a ‘‘no
set-off’’ provision. If a set-off is affected, the voucher(s) from which the
deduction is made should be annotated
to identify the contract and appropriation affected and the applicable NASA
Form 456.
[62 FR 14017, Mar. 25, 1997, as amended at 62
FR 58688, Oct. 30, 1997]

Subpart 1842.12—Novation and
Change-of-Name Agreements
1842.1203 Processing
agreements.
(NASA supplements paragraphs (b)
and (h))
(b) The installation shall immediately notify the Headquarters Office
of Procurement (Code HS) of the request to execute a novation (successorin-interest) or change-of-name agreement.
(h) The contracting officer shall forward one copy of the agreement to the
Code HS.
[62 FR 14017, Mar. 25, 1997, as amended at 63
FR 32764, June 16, 1998]

1842.1203–70 DOD processing of novation and change-of-name agreements on behalf of NASA.
(a) Copies of novation and change-ofname agreements executed by DOD on
behalf of NASA are maintained by the
Headquarters Office of Procurement
(Code HS).
(b) Code HS is the Agency point of
contact for issues related to proposed
novation agreements. With the concurrence of Code HS, an installation may
execute a separate agreement with the
contractor.
[62 FR 14017, Mar. 25, 1997, as amended at 63
FR 32764, June 16, 1998]

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1842.1305

48 CFR Ch. 18 (10–1–02 Edition)

Subpart 1842.13—Suspension of
Work, Stop-Work Orders, and
Government Delay of Work
1842.1305 Contract
clauses.
(NASA
supplements paragraph (b))
(b) FAR 52.242–15, Stop-Work Order,
shall not be used in solicitations or
contracts for research performed by
educational or other nonprofit institutions.

versary is within 3 months of the end
of the contract period of performance.
The final evaluation will include an
evaluation of the period between the
last interim evaluation and the end of
the contract period of performance. Interim performance evaluations are optional for SBIR/STTR Phase II contracts. A final evaluation summarizing
all performance must be conducted on
all contracts.
[67 FR 44777, July 5, 2002]

Subpart 1842.14—Traffic and
Transportation Management

§ 1842.1503 Procedures (NASA Supplement paragraphs (a) and (b)).

1842.1405 Discrepancies incident to
shipment of supplies. (NASA supplements paragraph (a))
(a) NASA personnel shall also report
discrepancies and adjust claims for loss
of and damage to Government property
in transit in accordance with NPG
6200.1, NASA Transportation and General Traffic Management.
[62 FR 14017, Mar. 25, 1997, as amended at 65
FR 12485, Mar. 9, 2000]

Subpart 1842.15—Contractor
Performance Information
SOURCE: 63 FR 42756, Aug. 11, 1998, unless
otherwise noted.

1842.1501 General.
Communications with contractors
are vital to improved performance and
this is NASA’s primary objective in
evaluating past performance. Other objectives include providing data for future source selections. While the evaluations must reflect both shortcomings
and achievements during performance,
they should also elicit from the contractors their views on impediments to
improved performance emanating from
the Government or other sources.
[65 FR 82297, Dec. 28, 2000]

1842.1502 Policy.
(a) Within 60 days of every anniversary of the award of a contract having
a term exceeding one year, contracting
officers must conduct interim evaluations of performance on contracts subject to FAR Subpart 42.15 and this subpart. Interim evaluations are not required on contracts whose award anni-

(a) The contracting officer shall determine who (e.g., the technical office
or end users of the products or services) evaluates appropriate portions of
the contractor’s performance. The
evaluations are subjective in nature.
Nonetheless, the contracting officer,
who has responsibility for the evaluations, shall ensure that they are reasonable.
(b) NASA Form 1680, entitled,
‘‘Evaluation of Performance,’’ shall be
used to document evaluations. This
provides for a five-tiered rating (using
the definitions for award fee evaluation
scoring found in 1816.405–275) covering
the following attributes: quality, timeliness, price or control of costs (not required for firm-fixed-price contracts or
firm-fixed-price contracts with economic price adjustment), and other
considerations. Evaluations used in determining award fee payments satisfy
the requirements of this subpart and do
not require completion of NASA Form
1680. In addition, hybrid contracts containing both award fee and non-award
fee portions do not require completion
of NASA Form 1680. Contracting Officers shall ensure that the Government
discusses all evaluations with contractors and shall record the date and the
participants on the evaluation form.
Contracting officers shall sign and date
the evaluation after considering any
comments received from the contractor within 30 days of the contractor’s receipt of the evaluation. If a contractor in its timely comments disagrees with an evaluation and requests
a review at a level above the contracting officer, it shall be provided
within 30 days. While the FAR forbids

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National Aeronautics and Space Administration
use of the evaluations for source selections more than three years after contract completion, they shall nevertheless be retained in the contract file as
provided in FAR 4.8, Government Contract Files.

Subpart 1842.70—Additional NASA
Contract Clauses
1842.7001
days.

Observance

of

legal

holi-

(a) The contracting officer shall insert the clause at 1852.242–72, Observance of Legal Holidays, in contracts
when work will be performed at a
NASA installation.
(b) The clause shall be used with its
Alternate I in cost-reimbursement contracts when it is desired that contractor employees not have access to
the installation during Government
holidays. This alternate may be appropriately modified for fixed-price contracts.
(c) The clause may be used with its
Alternate II in cost-reimbursement
contracts when it is desired that administrative leave be granted contractor personnel in special circumstances, such as inclement weather
or potentially hazardous conditions.
This alternate may be appropriately
modified for fixed-price contracts.
[62 FR 14017, Mar. 25, 1997, as amended at 63
FR 32764, June 16, 1998; 65 FR 46628, July 31,
2000]

1842.7002 Travel outside of the United
States.
The contracting officer shall insert
the clause at 1852.242–71, Travel Outside
of the United States, in cost-reimbursement solicitations and contracts
where a contractor may travel outside
of the United States and it is appropriate to require Government approval
of the travel.
1842.7003 Emergency medical services
and evacuation.
The contracting officer must insert
the clause at 1852.242–78, Emergency
Medical Services and Evacuation, in all
solicitations and contracts when employees of the contractor are required
to travel outside the United States or

1842.7201

to remote locations in the United
States.
[66 FR 18054, Apr. 5, 2001]

Subpart 1842.71—Submission of
Vouchers
1842.7101

Submission of vouchers.

(a) Vouchers shall be submitted in
accordance with the clause at 1852.216–
87, Submission of Vouchers for Payment.
(b) The auditor shall retain an unpaid
copy of the voucher.
(c) When a voucher submitted in accordance with the clause at 1852.216–87
contains one or more individual direct
freight charges of $100 or more, an additional copy of Standard Form 1034A
and Standard Form 1035A shall be submitted and marked for return to the
contractor after payment. This copy
shall be transmitted quarterly by the
contractor with the freight bills to the
General Services Administration. When
a voucher is identified as the
‘‘Completion Voucher,’’ an additional
copy shall be submitted for transmittal
to the NASA contracting officer.

Subpart
1842.72—NASA
Contractor Financial Management
Reporting
1842.7201

General.

(a) Contracting officer responsibilities. (1) Contracting officers must ensure contracts require cost reporting
consistent with both policy requirements and project needs. Contracting
Officers shall monitor contractor cost
reports on a regular basis to ensure
cost data reported is accurate and
timely.
Adverse trends or discrepancies discovered in cost reports should be pursued through discussions with financial
and project team members.
(2)
Whenever
cost
performance
threatens contract performance, contracting officers shall require corrective action plans from the contractors.
(b) Reporting requirements. (1) Use of
the NASA Contractor Financial Management Reports, the NASA form 533
series, is required on cost-type, price

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1842.7202

48 CFR Ch. 18 (10–1–02 Edition)

redetermination, and fixed-price incentive contracts when the following dol-

lar, period of performance, and scope
criteria are met:

Contract value/scope

Period of performance

533M

$500K to $999K .........................................
$1,000,000 and over .................................
$1,000,000 and over .................................

1 year or more ..........................................
Less than 1 year .......................................
1 year or more ..........................................

Required ..............
Required ..............
Required ..............

(2) When it is probable that a contract will ultimately meet the criteria
in paragraph (b)(1) of this section
through change orders, supplemental
agreements, etc., the reporting requirement must be implemented in the contract based on the estimated final contract value at the time of award.
(3) NF 533Q reporting may be waived
by the contracting officer, with the
concurrence of the center chief financial officer and cognizant project manager, for support service or task order
contracts, when NF 533M reports and
other data are sufficient to ensure accurate monthly cost accruals, evaluation of the contractor’s cost performance, and forecasting of resource requirements.
(4) Where a specific contractual requirement differs from the standard
system set forth in NPG 9501.2, NASA
Contractor Financial Management Reporting, but is determined to be in the
best interests of the Government and
does not eliminate any of the data elements required by the standard NF 533
formats, it may be approved by the
contracting officer with the concurrence of the center chief financial officer and the project manager. Such approval shall be documented and retained, with the supporting rationale,
in the contract file.
(5) The contractor’s internal automated printout reports may be substituted for the 533 reporting formats
only if the substitute reports contain
all the data elements that would be
provided by the corresponding 533’s.
The contracting officer shall coordinate any proposed substitute with the
installation financial management office.
(c) Contract requirements. (1) Reporting requirements, including a description of reporting categories, shall
be detailed in the procurement request,
and reports shall be required by inclusion of the clause prescribed in

533Q
Optional.
Optional.
Required.

1842.7202. The contract schedule shall
include report addressees and numbers
of copies. Reporting categories shall be
coordinated with the center financial
management office to ensure that data
required for agency cost accounting
will be provided by the reports. Reporting dates shall be in accordance with
NPG 9501.2, except that earlier submission is encouraged whenever feasible.
No due date shall be permitted which is
later than the date by which the center
financial management office needs the
data to enter an accurate monthly cost
accrual in the accounting system.
(2) The contractor shall be required
to submit an initial report in the NF
533Q format, time phased for the expected life of the contract, within 30
days after authorization to proceed has
been granted. NF 533M reporting will
begin no later than 30 days after incurrence of cost. NF 533Q reporting begins
with the initial report.
1842.7202

Contract clause.

The contracting officer shall insert
the clause at 1852.242–73, NASA Contractor Financial Management Reporting, in solicitations and contracts
when any of the NASA Form 533 series
of reports is required from the contractor.
[62 FR 36721, July 9, 1997]

Subpart 1842.73—Audit Tracking
and Resolution
1842.7301 NASA external audit followup system.
(a) This section implements OMB
Circular No. A–50 and NASA Policy Directive (NPD) 1200.10 ‘‘Internal Management Controls and Audit Liaison
and Followup’’, which provide more detailed
guidance.
Recommendations
from external audits (OMB Circular No.
A–133, Audits of States, Local Governments, and Non-Profit Institutions)

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National Aeronautics and Space Administration
shall be resolved by formal review and
approval procedures analogous to those
at 1815.406–171.
(b) The external audit followup system tracks all contract and OMB Circular No. A–133 audits where NASA has
resolution and disposition authority.
The objective of the tracking system is
to ensure that audit recommendations
are resolved within 6 months after receipt of the audit report and corrected
as expeditiously as possible.
(c)(1) The identification and tracking
of contract audit reports under NASA
cognizance are accomplished in cooperation with the DCAA.
(2) Identification and tracking of
OMB Circular No. A–133 audit reports
are accomplished in cooperation with
the NASA Office of the Inspector General (OIG).
(d)(1) All reportable contract audit
reports as defined by Chapter 15, Section 6, of the DCAA Contract Audit
Manual (CAM) shall be reported quarterly to the Headquarters Office of Procurement (Code HK); and
(2) Only OMB Circular No. A–133
audit reports involving the following
shall be reported quarterly to Code HK:
(i) A significant management control
issue; or
(ii) Questioned costs of $10,000 or
more due to an audit finding (see Subpart E-Auditor, paragraph 510 of OMB
Circular No. A–133).
(3) NASA contracting officers will
maintain a dialogue with DOD Administrative Contracting Officers (ACO)
who have been delegated activities on
NASA contracts. A review will be conducted no less frequently than semiannually, and the status and disposition of significant audit findings will
be documented in the contract file.
During this review, NASA contracting
officers should discuss with the ACO
both prime and subcontract audit reports that have been delegated to DOD.
Should these reports contain any findings or recommendations, the NASA
contracting officer should obtain their
status and document the contract file
accordingly.
(e)(1) The terms ‘‘resolution’’ and
‘‘corrective action/disposition’’ are defined as follows:
(i) Resolution—The point at which
the IG and Management agree on the

1842.7301

action to be taken on audit report findings and recommendations.
(ii) Corrective action/disposition—
Management action responsive to an
agreed upon audit recommendation.
(2) The resolution and disposition of
OMB Circular No. A–133 audits are handled as follows:
(i) Audit findings pertaining to an individual NASA award are the responsibility of the procurement officer administering that award.
(ii) Audit findings having a Governmentwide impact are the responsibility
of the cognizant Federal agency responsible for oversight. For organizations subject to OMB Circular No. A–
133, there is either a cognizant agency
or an oversight agency. The cognizant
agency is the Federal agency that provides the predominant amount of direct funding to the recipient organization unless OMB makes a specific cognizant agency for audit assignment. To
provide for the continuity of cognizance, the determination of the predominant amount of direct funding will
be based on the direct Federal awards
expended in the recipient’s fiscal years
ending in 1995, 2000, 2005, and every
fifth year thereafter. When there is no
direct funding, the Federal agency with
the predominant indirect funding is to
assume the oversight responsibilities.
In cases where NASA is the cognizant
or oversight Federal agency, audit resolution and disposition is the responsibility of the procurement officer for
the Center having the largest amount
of direct funding, or, if there is no direct funding, the largest amount of indirect funding for the audited period. A
copy
of
the
memorandum
dispositioning the findings shall be provided by each Center having resolution
responsibility for the particular report
to the Headquarters OIG office and
Code HK.
[65 FR 82297, Dec. 28, 2000, as amended at 66
FR 53548, Oct. 23, 2001]

Subpart 1842.74—Earned Value
Management
SOURCE: 64 FR 10574, Mar. 5, 1999, unless
otherwise noted.

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1842.7401

48 CFR Ch. 18 (10–1–02 Edition)

1842.7401 Earned Value Management
Systems (EVMS).
When an offeror or contractor is required to provide an EVMS plan to the
Government in accordance with NASA
Policy Directive (NPD) 9501.3, Earned
Value Management, the contracting officer shall forward a copy of the plan to
the cognizant administrative contracting officer (ACO) to obtain the assistance of the ACO in determining the
adequacy of the proposed EVMS plan.
1842.7402 Solicitation provisions and
contract clauses.
(a) When the Government requires
Earned Value Management, the contracting officer shall insert:
(1) The provision at 1852.242–74, Notice of Earned Value Management System, in solicitations; and
(2) The clause at 1852.242–75, Earned
Value Management System, in solicitations and contracts.
(b) The contracting officer shall insert the clause at 1852.242–76, Modified
Cost Performance Report, in solicitations and contracts requiring modified
cost performance reporting (see NPD
9501.3, Earned Value Management).
(c) The contracting officer shall insert the provision at 1852.242–77, Modified Cost Performance Report Plans, in
solicitations for contracts requiring
modified cost performance reporting
(see NPD 9501.3).

PART 1843—CONTRACT
MODIFICATIONS
Subpart 1843.2—Change Orders
Sec.
1843.205 Contract clauses.
1843.205–70 NASA contract clauses.

Subpart 1843.70—Undefinitized Contract
Actions
1843.7001
1843.7002
1843.7003
1843.7004
1843.7005

Definitions.
Policy.
Procedures.
Exceptions.
Definitization.

Subpart 1843.71—Shared Savings
1843.7101 Shared Savings Program.
1843.7102 Solicitation provision and
tract clause.

con-

AUTHORITY: 42 U.S.C. 2473(c)(1).
SOURCE: 62 FR 14022, Mar. 25, 1997, unless
otherwise noted.

Subpart 1843.2—Change Orders
1843.205

Contract clauses.

As authorized in the prefaces of
clauses FAR 52.243–1, Changes—Fixed
Price; FAR 52.243–2, Changes—Cost Reimbursement;
and
FAR
52.243–4,
Changes; and in the prescription at
43.205(c) for FAR 52.243–3, Changes—
Time-and-Material or Labor-Hours, the
period within which a contractor must
assert its right to an equitable adjustment may be varied not to exceed 60
calendar days.
[65 FR 58932, Oct. 3, 2000]

1843.205–70

NASA contract clauses.

(a)(1) The contracting officer may insert in contracts a clause substantially
the same as 1852.243–70, Engineering
Change Proposals, when ECPs are expected. Paragraphs (c) and (d) of the
basic clause and Alternate I of the
clause shall be changed to reflect the
specific type of contract.
(2) If it is desirable to preclude a
large number of small-dollar, contractor-initiated engineering changes
and to reduce the administrative cost
of reviewing them, the contracting officer shall use the clause with its Alternate I.
(3) If the contract is a cost-reimbursement type, the contracting officer
shall use the clause with its Alternate
II.
(b) The contracting officer may insert a clause substantially as stated at
1852.243–72, Equitable Adjustments, in
solicitations and contracts for—
(1) Dismantling, demolishing, or removing improvements; or
(2) Construction, when the contract
amount is expected to exceed the simplified acquisition threshold and a
fixed-price contract is contemplated.
[62 FR 14022, Mar. 25, 1997, as amended at 63
FR 17339, Apr. 9, 1998; 66 FR 53548, Oct. 23,
2001]

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Subpart 1843.70—Undefinitized
Contract Actions
1843.7001 Definitions.
Undefinitized contract action (UCA)
means a unilateral or bilateral contract modification or delivery/task
order in which the final price or estimated cost and fee have not been negotiated and mutually agreed to by
NASA and the contractor. (Issuance of
letter contracts and their modifications are governed by subpart 1816.6.)
1843.7002 Policy.
(a) Undefinitized contract actions
may be issued only on an exception
basis, and centers must ensure that
NASA liabilities and commitments are
minimized. When an undefinitized contract action is justified and program
requirements can be severed into
smaller, discreet efforts, the work authorized by the undefinitized contract
action must be limited to the minimum severable effort required to satisfy the urgent program requirements.
The remaining requirements may not
be
initially
included
in
the
undefinitized contract action and must
be acquired through a separate fully
priced and definitized contract action.
(b) The contract file for each UCA
shall be documented to justify issuance
and shall include a Government estimate for the changed requirements.
[66 FR 53548, Oct. 23, 2001]

1843.7003 Procedures.
(a)(1) Issuance of undefinitized contract actions with a Government estimated cost or price over $100,000 must
be approved in writing by the Center
Director.
(2) All other undefinitized contract
actions must be approved in writing by
the procurement officer.
(3) In emergency situations, approval
may be given orally and subsequently
confirmed in writing.
(4) The approval authorities in paragraphs (a)(1) and (2) of this section are
not delegable.
(b) (1) Undefinitized contract actions
exceeding $100,000 must be issued as bilateral agreements setting forth a ceiling price or ‘‘not to exceed’’ estimated
cost figure for the changed contractual

1843.7004

requirements. For fixed price contracts
the negotiated price for the changed
contract requirements shall not exceed
the established ceiling price. In the
case of cost type contracts any costs
eventually negotiated for the changed
requirements in excess of the ‘‘not to
exceed’’ estimated cost figure shall be
non-fee bearing. The ceiling price or
‘‘not to exceed’’ estimated cost figures
shall be separately identified in the
UCA instrument from the pricing
structure of the basic contract.
(2) The Center Director may waive
the ceiling price or ‘‘not to exceed’’ estimated cost figure and bilateral agreement requirements prior to UCA
issuance on the basis of urgency. This
waiver authority is not delegable. Any
waivers shall be documented in the
contract file.
(c) The changed contractual requirements set forth in the UCA shall be
clearly defined and shall be limited to
the minimum effort required to satisfy
urgent program requirements while a
cost proposal is prepared, analyzed and
negotiated.
(d) For undefinitized contract actions
with a Government estimate greater
than $1,000,000 and not excepted under
subpart 1843.7004, a 180 day funding profile shall be obtained from the contractor prior to execution of the
undefinitized contract action.
(e) Undefinitized contract actions
with a Government estimated cost or
price greater than $1,000,000 shall include a requirement that the change
shall be separately accounted for by
the contractor to the degree necessary
to provide the contracting officer visibility into actual costs incurred pending definitization. The contracting officer may waive this requirement for individual actions if there is a documented finding that such accounting
procedures would not be cost effective.
Any such waiver shall not affect existing NASA Form 533 or other financial
reporting requirements set forth in the
contract.
[62 FR 14022, Mar. 25, 1997, as amended at 66
FR 53548, Oct. 23, 2001]

1843.7004

Exceptions.

(a) Exceptions to the requirement for
Center Director or procurement officer

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1843.7005

48 CFR Ch. 18 (10–1–02 Edition)

approval of undefinitized contract actions are—
(1) Modifications to facilities contracts;
(2) Modifications to construction contracts using Construction of Facilities
funding;
(3) Urgent modification resulting
from Shuttle manifest changes or that
involve immediate issues of safety or
damage/loss of property;
(4) Modifications to decrease the contract value; or
(5) Modification to letter contracts.
(b) The contract file for any of the
modifications in paragraph (a) of this
section shall cite the exception and include complete supporting rational for
its applicability.
[62 FR 14022, Mar. 25, 1997, as amended at 66
FR 53548, Oct. 23, 2001]

1843.7005

PART 1844—SUBCONTRACTING
POLICIES AND PROCEDURES
Subpart 1844.2—Consent to Subcontracts
Sec.
1844.201 Consent and advance notification
requirements.
1844.201–1 Consent requirements.
1844.202 Contracting officer’s evaluation.
1844.202–1 Responsibilties.
1844.204 Contract clauses.
1844.204–70 NASA contract clause.

Definitization.

(a) Undefinitized contract actions
should be sufficiently complete and detailed as to enable the contractor to
begin immediate preparation of a cost
proposal for the changed requirement.
The NASA goal is to definitive UCAs
within 180 from date of issuance.
(b) Whenever possible, pre-change
study efforts or engineering change
proposals (ECPs) shall be utilized to
negotiate and definitize changes prior
to issuance.

Subpart 1844.3—Contractors’ Purchasing
Systems Reviews
1844.302 Requirements.
1844.302–70 DCMA-conducted contractor purchasing system reviews.
1844.302–71 NASA-conducted contractor purchasing system reviews.
1844.304 Surveillance.
1844.304–70 Contracting officer surveillance.
1844.305 Granting, withholding, or withdrawing approval.
1844.305–70 Review of CPSR reports.
AUTHORITY: 42 U.S.C. 2473(a)(1).
SOURCE: 62 FR 14023, Mar. 25, 1997, unless
otherwise noted.

Subpart 1843.71—Shared Savings
1843.7101

1843.7102 Solicitation provision and
contract clause.
The contracting officer shall insert
the clause at 1852.243–71, Shared Savings, in all solicitations and contracts
expected to exceed $1,000,000, except
those awarded under FAR part 12, NRA
and AO procedures, or the SBIR and
STTR programs.

Shared Savings Program.

This subpart establishes and describes the methods for implementing
and administering a Shared Savings
Program. This program provides an incentive for contractors to propose and
implement, with NASA approval, significant cost reduction initiatives.
NASA will benefit as the more efficient
business practices that are implemented lead to reduced costs on current and follow-on contracts. In return,
contractors are entitled to share in
cost savings subject to limits established in the contract. The contracting
officer may require the contractor to
provide periodic reporting, or other
justification, or to require other steps
(e.g., cost segregation) to ensure projected cost savings are being realized.

Subpart 1844.2—Consent to
Subcontracts
1844.201 Consent and advance notification requirements.
1844.201–1 Consent
requirements.
(NASA supplements paragraph (a))
(a)(i) In determining special surveillance consent requirements, the contracting officer should consider specific
subcontract awards, as well as any individual systems, subsystems, components, technologies, and services that
should have contracting officer consent
prior to being subcontracted.
(ii) For each planned contract award
expected to exceed $1 million in total
estimated value (inclusive of options),
the contracting officer should consider

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National Aeronautics and Space Administration
such factors as the following to determine whether certain subcontracts require special surveillance:
(A) The degree of subcontract pricing
uncertainties at the time of contract
award;
(B) The overall quality of the contractor’s approach to pricing subcontracts;
(C) The extent of competition
achieved, or to be achieved, by the contractor in the award of subcontracts;
(D) Technical complexity and the
criticality of specific supplies, services,
and technologies on the successful performance of the contract; and
(E) The potential impact of planned
subcontracts on source selection or incentive arrangements.
(iii) The contracting officer shall
document results of the review in the
contract file. For contract modifications and change orders, the contracting officer shall make the determination required by paragraph (a)(ii)
of this section whenever the value of
any subcontract resulting from the
change order or modification is proposed to exceed the dollar threshold for
obtaining cost or pricing data (see FAR
15.403–4(a)(1)) or is one of a number of
subcontracts with a single subcontractor for the same or related supplies
or services that are expected cumulatively to exceed the dollar threshold
for obtaining cost or pricing data.
(iv) In addition, any subcontract
under a cost type prime contract shall
be identified for special surveillance if
consent was not provided at the time of
contract award and cost or pricing data
would be required in accordance with
FAR 15.404–3(c).
[63 FR 43099, Aug. 12, 1998, as amended at 64
FR 5621, Feb. 4, 1999]

1844.202 Contracting officer’s evaluation.
1844.202–1 Responsibilities.
supplements paragraph (a))

(NASA

(a) NASA contracting officers shall
retain consent to subcontract authority unless delegation is approved in
writing by the procurement officer.

1844.302–70

1844.204

Contract clauses.

1844.204–70

NASA contract clause.

The contracting officer shall insert
the clause at 1852.244–70, Geographic
Participation in the Aerospace Program, in all research and development
solicitations and contracts of $500,000
or over that will be performed within
the United States.

Subpart 1844.3—Contractors’
Purchasing Systems Reviews
1844.302

Requirements.

1844.302–70 DCMA-conducted
contractor purchasing system reviews.
For contracts within their cognizance, NASA contracting officers
shall be aware of purchasing system
approval status and should become actively involved with the Defense Contract Management Agency (DCMA) in
the Contractor Purchasing System Review (CPSR) process. Involvement
should include the following:
(a) Verifying that CPSRs are being
conducted in accordance with FAR
44.302.
(b) Ensuring that purchasing system
review specifically includes the business unit performing the NASA contract.
(c) Actively participating as a team
member, or arranging NASA representation, on DCMA CPSRs to review
areas of NASA-specific interest. At a
minimum, such participation or representation shall be arranged when the
DCMA CPSR review involves—
(1) Contractors with major NASA
programs;
(2) Contractors’ business units where
the total dollar value of NASA contracts is substantial; or
(3) Any contractor system where the
contracting officer has special concerns.
(d) Ensuring that the selected CPSR
sample to be reviewed reflects the level
of NASA business in the contractor’s
purchasing organization.
(e) Providing to the cognizant DCMA
CPSR team leader any areas of special
emphasis regarding the contractor’s
purchasing system to ensure that the

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1844.302–71

48 CFR Ch. 18 (10–1–02 Edition)

review is tailored to address any NASA
concerns.
[62 FR 14023, Mar. 25, 1997, as amended at 62
FR 36721, July 9, 1997; 66 FR 53548, Oct. 23,
2001]

1844.302–71 NASA-conducted
contractor purchasing system reviews.
If a NASA activity is the cognizant
contract administration officer, or
after coordination with the cognizant
DCMA CPSR office it is determined
that a CPSR is required but cannot be
accomplished by DCMA, then a CPSR
should be conducted by NASA personnel. The NASA CPSR team leader:
(a) May use the DOD FAR Supplement, Contractor Purchasing System
Review (CPSR) guidance, as a general
guide to conducting the CPSR.
(b) May vary the scope of review depending on the contractor and contracts involved.
(c) Shall maintain close coordination
with the cognizant ACO during CPSRs
at contractors under DOD cognizance.
[62 FR 14023, Mar. 25, 1997, as amended at 66
FR 53548, Oct. 23, 2001]

1844.304

ducted during the year by NASA representatives, and summarize the types
and quantity of deficiencies identified
during reviews, the need for special reviews, and recommended areas of emphasis during future CPSRs.
1844.305 Granting, withholding,
withdrawing approval.

1844.305–70 Review of CPSR reports.
ACO actions related to purchasing
system approval have a potential impact on NASA contracting officer consent requirements. Accordingly, NASA
contracting officers shall review system deficiencies documented in CPSR
reports and when results of consent reviews and other sources conflict with
CPSR or DOD surveillance conclusions,
formally communicate such concerns
to the ACO having cognizance of purchasing system approval. Significant
issues or significant conflicts with
DOD CPSR results should be formally
referred to the Office of Procurement
(Code HS).

PART 1845—GOVERNMENT
PROPERTY

Surveillance.

1844.304–70 Contracting officer surveillance.
(a) In the period between complete
CPSRs, NASA contracting officers
shall maintain a sufficient level of surveillance to ensure contractor purchasing efforts in support of NASA
contracts are accomplished in an appropriate manner and protect the interests of the Agency.
(b) Surveillance shall be accomplished primarily through performance
of subcontract consent reviews. Other
methods of surveillance, including
periodic reviews of contractor purchasing records, may also be conducted. Contracting officers shall document the results of subcontract consent reviews and periodic reviews,
maintaining a record of contractor subcontract or purchase order award performance on NASA contracts. Contractor performance shall be summarized on an annual basis and provided
to the ACO cognizant of the contractor’s purchasing system. Annual reports should summarize the number of
consent reviews and other reviews con-

Subpart 1845.1—General
Sec.
1845.102 Policy.
1845.102–70 NASA policy.
1845.102–71 Solicitation and review procedures.
1845.104 Review and correction of contractors’ property control systems.
1845.106 Government property clauses.
1845.106–70 NASA contract clauses and solicitation provision.
1845.106–71 Plant reconversion and plant
clearance.

Subpart 1845.3—Providing Government
Property to Contractors
1845.301 Definitions.
1845.302 Providing facilities.
1845.302–1 Policy.
1845.302–2 Facilities contracts.
1845.302–70 Securing approval of facilities
projects.
1845.302–71 Determination and findings.

Subpart 1845.4—Contractor Use and Rental
of Government Property
1845.402 Authorizing use of Government production and research property.
1845.403 Rental—Use and Charges clause.

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National Aeronautics and Space Administration
1845.405 Contracts with foreign governments
or international organizations.
1845.405–70 NASA procedures.
1845.406 Use of Government production and
research property on independent research and development programs.
1845.406–70 NASA policy.
1845.407 Non-Government use of plant equipment.

Subpart 1845.5—Management of Government Property in the Possession of
Contractors
1845.502 Contractor responsibility.
1845.502–1 Receipts for Government property.
1845.502–70 Contractor-acquired property.
1845.505 Records and reports of Government
property.
1845.505–14 Reports of Government property.
1845.508 Physical inventories.

Subpart 1845.6—Reporting, Redistribution,
and Disposal of Contractor Inventory
1845.604 Restrictions on purchase or retention of contractor inventory.
1845.606 Inventory schedules.
1845.606–1 Submission.
1845.607 Scrap.
1845.607–1 General.
1845.607–170 Contractor’s approved scrap
procedure.
1845.607–2 Recovering precious metals.
1845.608 Screening of contractor inventory.
1845.608–1 General.
1845.608–6 Waiver of screening requirements.
1845.610 Sale of surplus contractor inventory.
1845.610–3 Proceeds of sale.
1845.610–4 Contractor inventory in foreign
countries.
1845.613 Property disposal determinations.
1845.615 Accounting for contractor inventory.

Subpart 1845.70 [Reserved]
Subpart 1845.71—Forms Preparation
1845.7101 Instructions for preparing NASA
Form 1018.
1845.7101–1 Property classification.
1845.7101–2 Transfers of property.
1845.7101–3 Unit acquisition cost.
1845.7101–4 Types of deletions from contractor property records.
1845.7101–5 Contractor’s privileged financial
and business information.
1845.7102 Instructions for preparing DD
Form 1419.

Subpart 1845.72—Contract Property
Management
1845.7201

Definitions.

1845.102–70

1845.7202 General.
1845.7203 Delegations of property administration and plant clearance.
1845.7204 Retention of property administration and plant clearance.
1845.7205 Functional oversight of property
administration and plant clearance.
1845.7206 Responsibilities of property administrators and plant clearance officers.
1845.7206–1 Property administrators.
1845.7206–2 Plant clearance officers.
1845.7207 Declaration of excess property.
1845.7208 Closure of contracts.
1845.7208–1 Completion or termination.
1845.7208–2 Final review and closing of contracts.
1845.7209 Special subjects.
1845.7209–1 Government property at alternate locations of the prime contractor
and subcontractor plants.
1845.7209–2 Loss, damage, or destruction of
Government property.
1845.7209–3 Loss, damage, or destruction of
Government property while in contractor’s possession or control.
1845.7209–4 Financial reports.
1845.7210 Contractor utilization of Government property.
1845.7210–1 Utilization surveys.
1845.7210–2 Records of surveys.
AUTHORITY: 42 U.S.C. 2473(c)(1).
SOURCE: 62 FR 36722, July 9, 1997, unless
otherwise noted.

Subpart 1845.1—General
1845.102

Policy.

1845.102–70

NASA policy.

Government property shall not be
provided to contractors unless all other
alternatives are not feasible. The decision to provide Government property
to contractors (whether Governmentfurnished or contractor-acquired) shall
be made only after careful consideration of all relevant factors. Among
these factors are the following:
(a) Providing Government property
to contractors increases the Government’s administrative burden and requires recordkeeping and personnel.
(b) Providing property may dilute the
contractor’s overall responsibility and
weaken guarantees, end-item delivery
requirements, and other contract
terms.
(c) Providing property may make
NASA responsible for delays in that
the Agency assumes responsibility for
scheduling delivery of the property.

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1845.102–71

48 CFR Ch. 18 (10–1–02 Edition)

1845.102–71 Solicitation and review
procedures.
(a) Each solicitation, as applicable,
shall include the following:
(1) A list of any Government property
available to be furnished, quantities,
locations, conditions, and any related
information.
(2) A requirement that offerors identify any Government property in their
possession proposed for use during contract performance. The items, quantities, locations, acquisition costs, and
proposed rental terms must be provided, along with identification of the
Government contract under which the
property is accountable.
(3) A requirement that requested
Government provided facilities be described and identified by the classifications in 1845.7101–1.
(4) A requirement that offerors provide, if applicable, the date of the last
Government property control system
review, a summary of the findings and
recommendations, and contractor corrective actions taken.
(b) The contracting officer shall provide a copy of the solicitation (or contract if no solicitation is used) to the
center supply and equipment management officer (SEMO) for review for acquisitions with an estimated cost
greater than $1,000,000, or for acquisitions over $50,000 when work is to be
performed at the center, existing Government property is being furnished, or
contract acquisition of Government
property is required or permitted.
1845.104 Review and correction of
contractors’ property control systems. (NASA supplements paragraph (a))
(a) Property administration is normally delegated to DOD. When property administration is not delegated to
DOD, NASA shall conduct the review of
the contractor’s property administration system in accordance with DOD
4161.2–M, Manual for the Performance
of Contract Property Administration.
1845.106 Government
property
clauses. (NASA supplements paragraph (b))
(b) If NASA contemplates taking
title to contractor acquired property
under paragraph (c) of the clause at

FAR 52.245–2, Government Property
(Fixed-Price
Contracts),
the
contracting officer shall list the applicable
property in the contract as deliverable
items.
1845.106–70 NASA contract
and solicitation provision.

(a) The contracting officer shall insert the clause at 1852.245–70, Contractor Requests for GovernmentOwned Equipment, in all solicitations
and contracts that have the potential
for contractor acquisition of equipment for the account of the Government that is not listed as a specific
contract deliverable. See 1845.7102 for
instructions on preparing DD Form
1419.
(b)(1) The contracting officer shall
insert the clause at 1852.245–71, Installation-Accountable Government Property, in solicitations and contracts
when Government property is to be
made available to a contractor working
on a NASA installation, and the Government will maintain accountability
for the property. The contracting officer shall list in the clause the applicable property user responsibilities. For
purposes of this clause, NASA installations include local off-site buildings
owned or directly leased by NASA
when the contractor does not have authority to acquire property for the account of the Government.
(2) Use of this clause is subject to the
SEMO’s concurrence that adequate installation property management resources are available for oversight of
the property in accordance with all applicable NASA installation property
management directives.
(3) The contracting officer shall identify in the contract the nature, quantity, and acquisition cost of such property and make the property available
on a no-charge basis.
(4) The contracting officer shall use
the clause with its Alternate I if the
SEMO requests that the contractor be
restricted from use of the center central receiving facility for the purposes
of receiving contractor-acquired property.
(5) Contracting officers shall list separately in the contract any property

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National Aeronautics and Space Administration
provided under a FAR 52.245 Government property clause that remains accountable to the contractor during its
use on the contract (such as property
used at the contractor’s or a subcontractor’s off-site facility) and which
is not also subject to the clause at
1852.245–71. The contracting officer
shall address any specific maintenance
considerations (e.g., requiring or precluding use of an installation calibration or repair facility) elsewhere in the
contract.
(6) See 1845.106–70(e).
(c) The contracting officer shall insert the clause at 1852.245–72, Liability
for Government Property Furnished for
Repair and Services, in fixed-price solicitations and contracts (except for
experimental, developmental, or research work with educational or nonprofit institutions, where no profit is
contemplated) for repair, modification,
rehabilitation, or other servicing of
Government property, if such property
is to be furnished to a contractor for
that purpose and no other Government
property is to be furnished. The contracting officer shall not require additional insurance under the clause unless the circumstances clearly indicate
advantages to the Government.
(d) The contracting officer shall insert the clause at 1852.245–73, Financial
Reporting of NASA Property in the
Custody of Contractors, in cost reimbursement contracts unless all property to be provided is subject to the
clause at 1852.245–71, Installation-Accountable Government Property. The
clause shall also be included in other
types of contracts when it is known at
award that property will be provided to
the contractor or that the contractor
will acquire property title to which
will vest in the Government prior to
delivery.
(e) When approved by the Logistics
Management Office of the Headquarters Office of Management Systems and Facilities (Code JLG), the
contracting officer shall insert the
clause at 1852.245–74, Contractor Accountable On-Site Government Property, in lieu of the clause at 1852.245–71,
in solicitations and contracts when accountability rests with an on-site contractor. The contracting officer’s written request for approval shall include a

1845.106–71

determination of costs that will be (1)
avoided (e.g., additional costs to the installation’s property management systems and staffing) and (2) incurred
(e.g., reimbursable costs of the contractor to implement, staff, and operate separate property management systems on-site, and resources needed for
performance of, or reimbursement for,
property administration) under contractor accountability.
(f) The contracting officer shall insert the clause at 1852.245–75, Title to
Equipment, in solicitations and contracts where the clause at FAR 52.245–
2 with its Alternate II or 52.245–5, with
its Alternate I is used.
(g) The contracting officer shall insert the clause at 1852.245–76, List of
Government-Furnished Property, in solicitations and contracts if the contractor is to be accountable under the
contract for Government property.
(h) The contracting officer shall insert the clause at 1852.245–77, List of Installation-Accountable Property and
Services, in solicitations and contracts
that require performance at the center
and authorize contractor use of property within the physical borders of the
center.
(1) The contracting officer shall insert the provision at 1852.245–79, Use of
Government-Owned Property, in all solicitations when Government property
may be used by the contractor.
(j) The contracting officer shall insert the clause at 1852.245–80, Use of
Government Production and Research
Property on a No-Charge Basis, in solicitations and contracts when government property (real property, commercially available equipment, special test
equipment, or special tooling) accountable under another contract(s) is authorized for use.
1845.106–71 Plant reconversion
plant clearance.

The Assistant Administrator for Procurement (Code HS) is the approval authority for any solicitation provision
or contract clause that would defer negotiation of costs for plant reconversion plant clearance until after award.

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48 CFR Ch. 18 (10–1–02 Edition)

Subpart 1845.3—Providing Government Property to Contractors
1845.301 Definitions.
Facilities, as defined in the FAR, also
include real property and commercially available equipment, whether
owned or leased by NASA or reimbursed as a cost under the contract.
Provide, as used in this subpart in
such phrases as ‘‘Government property
provided to the contractor’’ and
‘‘Government-provided
property,’’
means either to furnish, as in
‘‘Government-furnished property,’’ or
to permit to be acquired, as in
‘‘contractor-acquired property.’’ See
FAR
45.101
for
definitions
of
‘‘contractor-acquired property’’ and
‘‘Government-furnished property.’’
1845.302

sultation with the center industrial
property officer; and
(iv) The contracting officer documents the file with a detailed explanation of why continued furnishing of
the facilities is in the best interest of
the Government.
(a)(4)(A) The procurement officer is
designated to make the determinations
and findings (D&F) authorizing the use
of Government facilities. See 1845.302–
71 for D&F format.
(B) The requirements for a D&F and
a prospective contractor’s written
statement asserting inability to obtain
facilities are not applicable in the circumstances listed under FAR 45.302–
1(d). In these cases, the contracting officer shall document the contract file
with the rationale for providing the facilities, including the reason for not requiring the contractor to provide them.

Providing facilities.

1845.302–1 Policy. (NASA supplements
paragraph (a))
(a) In addition to the exceptions listed in FAR 45.302–1(a), existing NASAowned facilities (whether contractor
acquired or government furnished)
being used by a contractor may be retained for the remainder of the contract period and furnished under any
follow-on contract for the same effort
if the contracting officer determines
that to do so would be in the best interest of the Government, provided
that:
(i) The facilities are required to accomplish the purpose of the contract;
(ii) The contract contains a provision
requiring the contractor to replace any
of the facilities that reach the end of
their useful life during the contract period, or which are beyond economical
repair, if the facilities are still needed
for contract performance. Such replacements shall be made with contractor-owned facilities. The contract
provision shall also expressly prohibit
contractor acquisitions of facility
items for the Government, unless specifically authorized by the contract or
consent has been obtained in writing
from the contracting officer pursuant
to FAR 45.302–1(a);
(iii) Consideration has been given to
any alternative uses by Government
personnel within the agency, in con-

1845.302–2

Facilities contracts.

Unless termination would be detrimental to the Government’s interests,
contracting officers shall terminate facilities contracts when the Government property is no longer required for
the performance of Government contracts or subcontracts. Contracting officers shall not grant the contractor
the unilateral right to extend the time
during which it is entitled to use the
property provided under the facilities
contract.
1845.302–70 Securing approval of facilities projects.
(a) Pursuant to NMI 7330.1, Delegation of Authority—Approval Authorities for Facility Projects, the contracting officer must approve facilities
projects involving leasing, construction, expansion, modification, rehabilitation, repair, or replacement of real
property.
(b) The contracting officer’s written
authorization is required before any
change is made in the scope or estimated cost of any facilities project.
1845.302–71
ings.

Determination

and

(a) Procedure. Determination and
findings (D&F) required under FAR
45.302–1(a)(4) and 1845.302–1(a)(4) shall
be prepared by the contracting officer

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National Aeronautics and Space Administration
and approved by the procurement officer. Prior to approval, concurrence
must be obtained from the SEMO to
ensure agreement on the use of the
government facilities by the contractor. D&Fs shall address individual
types of facilities to be provided to the
contractor. Reference to specific variations in quantities of items to be provided should be included in the D&F if
additional requirements are anticipated. A separate D&F is required before adding new types of items or significant changes in quantity or before
adding any new work to the contract
that requires additional Government
facilities.
(b) Format. A sample format follows:
National Aeronautics and Space
Administration, Washington, DC 20546

1845.405–70

scope of work to be completed. State that
the contract cannot be accomplished without
the specified facility items being provided.
Include an estimate of the value of the facilities and a statement that no facilities items
under $10,000 unit cost will be provided unless the contractor is a nonprofit, on-site, or
the facilities are only available from the
Government.
5. (Indicate whether the property will be
accountable under this contract or a separate facilities contract.)
Determination
For the reasons set forth above, it is hereby determined that the Government-owned
facilities identified herein will be provided to
the contractor.
Procurement Officer lllll
Date lllll

Subpart 1845.4—Contractor Use
and Rental of Government
Property

Determination and Findings
Decision To Provide Government Facilities
On the basis of the following findings and
determinations, Government-owned facilities may be provided to [insert the name of
the contractor] pursuant to the authority of
FAR 45.302–1(a)(4).
FINDINGS
1. The [insert the name of the contracting
activity] and the contractor (have entered)/
(proposed to enter) into Contract No. [Insert
the contract number]. (Include the following
information: Type of contract, contract
value, and a brief description of the scope of
work performed under the contract.)
2. (Justify that Government facilities are
needed for performance under the contract.
The justification shall demonstrate either (i)
that the contract cannot be fulfilled by any
other means, or (ii) that it is in the public
interest to provide the facilities. It is imperative that the justification be fully substantiated by evidence.)
3. (If the contract effort cannot be fulfilled
by any other means, indicate why the contractor cannot provide the facilities. For example, due to financial constraints, the contractor will replace the Government facilities with contractor-owned facilities. Address leadtime, validate the contractor’s
claims, and state that private financing was
sought and either not available or not advantageous to the Government. If private financing was not advantageous to the Government, provide justification. Indicate
other alternatives considered and reasons for
rejection.)
4. (Describe the types of facilities to be
provided and any variation in quantities of
items based on functional requirements. Explain how these facilities pertain to the

1845.402 Authorizing use of Government production and research
property. (NASA supplements paragraph (a))
(a)(i) A NASA contracting officer desiring to authorize use of Government
property under the cognizance of another contracting officer shall obtain
that contracting officer’s concurrence.
(ii) NASA contracting officers having
cognizance over NASA property may
authorize its use on contracts of other
agencies if such use will not interfere
with NASA’s primary purpose for the
property and will not extend beyond
the expected expiration or completion
date of the NASA contract.
1845.403 Rental—Use
and
Charges
clause. (NASA supplements paragraph (a))
(a) The Center Director is designated
as the authority to make the determinations on modified rental rates.
1845.405 Contracts with foreign governments or international organizations.
1845.405–70

NASA procedures.

(a) NASA policy is to recover a fair
share of the cost of Government production and research property if such
property is used in performing services
or manufacturing articles for foreign

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1845.406

48 CFR Ch. 18 (10–1–02 Edition)

countries or for international organizations.
(b) The prior written approval of the
Assistant Administrator for Procurement (Code H) is required for the use of
Government production and research
property on work for foreign countries
or for international organizations. The
Logistics Management Office of the
Headquarters Office of Management
Systems (Code JG), the Office of General Counsel (Code G), and the Headquarters Office of External Relations
(Code I) are required concurrences.
(c) Contracting officers shall forward
requests for approval to Code HS, along
with a summary of the circumstances
involved, including as a minimum—
(1) The name of the requesting contractor;
(2) The number of the contract under
which the equipment is controlled;
(3) A description of the equipment;
(4) The name of the foreign contractor and the relationship of the foreign contractor to its government or to
any international organization;
(5) A description of the articles to be
manufactured or services to be performed;
(6) A statement that the intended use
will not interfere with the current or
foreseeable requirements of the United
States or require use of the equipment
beyond the expected expiration or completion date of the NASA contract;
(7) A statement that the use of Government property is consistent with
the best interests of the United States;
(8) A statement that such use is legally authorized; and
(9) Any evidence of endorsement by
another agency of the U.S. Government
based on national security or foreign
policy of the United States (e.g., an approved license or agreement from the
Department of State or Department of
Commerce).
(d) Use, if approved, shall be subject
to rent in accordance with FAR 45.403.
[62 FR 36722, July 9, 1997, as amended at 65
FR 31103, May 16, 2000]

1845.406 Use of Government production and research property on independent research and development
programs.
1845.406–70

NASA policy.

The contracting officer should not
authorize contractor use of Government property for independent research and development on a rent-free
basis except in unusual circumstances
when it has been determined by the
contracting officer that—
(a) Such use is clearly in the best interests of the Government (for example, the project can reasonably be expected to be of value in specific Government programs); and
(b) No competitive advantage will accrue to the contractor through such
use (see FAR 45.201).
1845.407 Non-Government use of plant
equipment.
(NASA
supplements
paragraph (a)).
For NASA, the coverage in FAR
45.407, applies to all equipment, not
just plant equipment.
(a)(i) The Assistant Administrator
for Procurement (Code HS) is the approval authority for non-Government
use of equipment exceeding 25 percent.
(ii) The percentage of Government
and non-Government use shall be computed on the basis of time available for
use. For this purpose, the contractor’s
normal work schedule, as represented
by scheduled production shift hours,
shall be used. All equipment having a
unit acquisition cost of less than
$25,000 at any single location may be
averaged over a quarterly period.
Equipment having a unit acquisition
cost of $25,000 or more shall be considered on an item-by-item basis.
(iii) Approval for non-Government
use of less than 25 percent shall be for
a period not exceeding 1 year. Approval
for non-Government use in excess of 25
percent shall not be for less than 3
months.
(iv) Requests for the approval shall
be submitted to Code HS at least 6
weeks in advance of the projected use
and shall include—

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National Aeronautics and Space Administration
(A) The number of equipment items
involved and their total acquisition
cost; and
(B) An itemized listing of equipment
having an acquisition cost of $25,000 or
more, showing for each item the nomenclature, year of manufacture, and
acquisition cost.
62 FR 36722, July 9, 1997. Redesignated at 64
FR 36606, July 7, 1999]

Subpart 1845.5—Management of
Government Property in the
Possession of Contractors
1845.502

Contractor responsibility.

1845.502–1 Receipts for Government
property.
Receipts for Government property
shall comply with the instructions for
preparing NASA Form 1018, NASA
Property in the Custody of Contractors
(see 1845.7101).
1845.502–70 Contractor-acquired property.
All
contractor-acquired
property
must be authorized by the contract and
is subject to a determination by the
contracting officer that it is allocable
to the contract and reasonably necessary. The acquisition (and fabrication) of Government property is further subject to the following conditions, depending on category of property:
(a) Facilities.
(1) Prior contracting officer approval,
if the facilities are not already specifically described in the contract as contractor-acquired.
(2) Submission of DD Form 1419, DOD
Industrial Plant Requisition, or equivalent format, and return of Certificate
of Nonavailability.
(3) Submission of the written statement prescribed by FAR 45.302–1(a)(4).
(b) Special test equipment.
(1) Contracting officer approval 30
days in advance if the equipment is not
identified in the solicitation or contract.
(2) Submission of DD Form 1419, or
equivalent format, and return of Certificate of Nonavailability.
(c) Special tooling.
(1) If the contract contains a Subcontracts clause, advance notification

1845.508

to the contracting officer and contracting officer consent if required by
that clause.
(2) If the contract is a fixed-price
contract, submission of the list to the
contracting officer within 60 days after
delivery of the first production end
items (or later as prescribed by the
contracting officer), unless the tooling
is already identified in the solicitation.
(3) Submission of DD Form 1419 or
equivalent format and return of Certificate of Nonavailability.
(d) Material. If the contract contains
a Subcontracts clause, advance notification to the contracting officer and
contracting office consent if required
by that clause.
(e) Agency-peculiar property.
(1) If the contract contains a Subcontracts clause, advance notification
to the contracting officer and contracting officer consent if required by
that clause.
(2) Submission of DD Form 1419, or
equivalent format, and return of Certificate of Nonavailability.
1845.505 Records and reports of Government property.
1845.505–14 Reports of Government
property. (NASA supplements paragraphs (b))
(b) When the clause at 1852.245–73, Financial Reporting of NASA Property in
the Custody of Contractors, is included
in the contract, the contractor shall
submit NASA Form 1018, NASA Property in the Custody of Contractors, in
accordance with the instructions on
the form and 1845.71. Contractor property control systems shall distinguish
between Government furnished and
contractor acquired property for purposes of reporting the acquisition cost
in the property classifications shown in
FAR 45.505–14(a) (1) through (5).
1845.508 Physical inventories.
NASA contractors shall reconcile inventories with the official property
records and submit reports to the property administrator within 30 days after
inventory completion. The contractor
shall investigate all losses of property
and discoveries of unrecorded property
to determine the causes of the discrepancy and actions needed to prevent its
recurrence.

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1845.604

48 CFR Ch. 18 (10–1–02 Edition)

Subpart 1845.6—Reporting, Redistribution, and Disposal of Contractor Inventory
1845.604 Restrictions on purchase or
retention of contractor inventory.
(1) No contractor may sell contractor
inventory to persons known by it to be
NASA or DOD personnel who have been
engaged in administering or terminating NASA contracts.
(2)(i) The contractor’s or subcontractor’s authority to approve the sale,
purchase, or retention of Government
property on a contract which is excess
to needs after Government reutilization screening at less than cost by a
subcontractor, and the subcontractor’s
authority to sell, purchase, or retain
such property at less than cost with
the approval of the contractor or next
higher-tier subcontractor does not include authority to approve—
(A) A sale by a subcontractor to the
contractor, the next higher-tier subcontractor, or their affiliates; or
(B) A sale, purchase, or retention by
a subcontractor affiliated with the contractor or next higher-tier subcontractor.
(ii) Each excluded sale, purchase, or
retention requires the written approval
of the plant clearance officer.
1845.606

Inventory schedules.

1845.606–1 Submission.
See 1845.608 for intra-agency screening of excess contractor-held property.
1845.607

specting and examining items to be disposed of as scrap. When the contractor’s procedure does not require physical segregation of Government-owned
scrap from contractor-owned scrap and
separate disposal, care shall be exercised to ensure that a contract change
that generates a large quantity of
property does not result in an inequitable return to the Government. In
such a case, the property administrator
shall make a determination as to
whether separate disposition of Government scrap would be appropriate.
(c) A plant clearance case shall not
be established for property disposed of
through the contractor’s approved
scrap procedure.
(d) Property in scrap condition, other
than that disposed of through the contractor’s approved scrap procedure,
shall be reported on appropriate inventory schedules for disposition in accordance with the provisions of FAR
Part 45 and 1845.
1845.607–2 Recovering precious metals. (NASA supplements paragraph
(b)).
(b) Silver, gold, platinum, palladium,
rhodium, iridium, osmium, and ruthenium; scrap bearing such metals; and
items containing recoverable quantities of them shall be reported to the
Defense Reutilization and Marketing
Service, DRMS–R, Federal Center, Battle Creek, MI 49017–3092, for instructions regarding disposition.

Scrap.

1845.607–1

1845.608 Screening of contractor inventory.

General.

1845.607–170 Contractor’s
approved
scrap procedure.
(a) When a contractor has an approved scrap procedure, certain property may be routinely disposed of in
accordance with that procedure and
not processed under this section.
(b) The center property administrator is authorized to approve the contractor’s scrap procedure. Before approval, the plant clearance officer shall
review the procedure, particularly regarding sales. The plant clearance officer shall ensure that the procedure
contains adequate requirements for in-

1845.608–1 General.
(NASA
ments paragraphs (a))

(a) Property Disposal Officers (PDOs)
are the center focal points for intraagency reutilization screening. PDOs
shall acknowledge receipt of inventory
schedules within 30 days and simultaneously provide the plant clearance officer a NASA screening completion/release date. Screening shall be accomplished in accordance with NPG 4300.1.
[62 FR 36722, July 9, 1997, as amended at 65
FR 58932, Oct. 3, 2000]

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National Aeronautics and Space Administration
1845.608–6 Waiver of screening requirements.
The Director of the Logistics Management Office of the Headquarters Office of Management Systems and Facilities (Code JLG) is designated to authorize exceptions to intra-agency
screening requirements.
1845.610 Sale of surplus contractor inventory.
1845.610–3 Proceeds of sale.
The plant clearance officer shall
maintain an open suspense record until
verifying that credit has been applied,
unless another Government representative has specifically assumed this responsibility.
1845.610–4 Contractor inventory in
foreign countries.
NASA procedures for disposal are in
NPG 4300.1.
[62 FR 36722, July 9, 1997, as amended at 65
FR 58932, Oct. 3, 2000]

1845.613 Property disposal determinations.
The center property disposal officer
(PDO) shall review the determinations
in accordance with NPG 4300.1.
[62 FR 36722, July 9, 1997, as amended at 65
FR 58932, Oct. 3, 2000]

1845.615 Accounting for contractor inventory.
A copy of Standard Form 1424, Inventory Disposal Report, shall be provided
to the center industrial property officer or the PDO.

Subpart 1845.70 [Reserved]
Subpart 1845.71—Forms
Preparation
1845.7101 Instructions for preparing
NASA Form 1018.
NASA must account for and report
assets in accordance with 31 U.S.C. 3512
and 31 U.S.C. 3515, Federal Accounting
Standards, and Office of Management
and Budget (OMB) instructions. Since
contractors maintain NASA’s official
records for its assets in their possession, NASA must obtain annual data
from those records to meet these re-

1845.7101–1

quirements. Changes in Federal Accounting Standards and OMB reporting
requirements may occur from year to
year, requiring contractor submission
of supplemental information with the
NASA Form (NF) 1018. Contractors
shall retain documentation that supports data reported on NF 1018 in accordance with FAR subpart 4.7, Contractor Records Retention. Classifications of property, related costs to be
reported, and other reporting requirements are discussed in this subpart.
NASA Form 1018 (see 1853.3) provides
critical information for NASA financial statements and property management. Accuracy and timeliness of the
report are very important. If errors are
discovered on NF 1018 after submission,
the contractor shall contact the cognizant NASA Center Industrial Property Officer (IPO) to discuss corrective
action. IPO’s shall work with NASA
Center finance personnel to determine
appropriate corrective action and provide guidance to contractors.
[66 FR 41805, Aug. 9, 2001]

1845.7101–1

Property classification.

(a) General. Contractors shall report
costs in the classifications on NF 1018,
as described in this section.
(b) Land. Includes costs of land and
improvements to land. Contractors
shall report land with a unit acquisition cost of $100,000 or more.
(c) Buildings. Includes costs of buildings, improvements to buildings, and
fixed equipment required for the operation of a building which is permanently attached to and a part of the
building and cannot be removed without cutting into the walls, ceilings, of
floors. Contractors shall report buildings with a unit acquisition cost of
$100,000 or more. Examples of fixed
equipment required for functioning of a
building include plumbing, heating and
lighting equipment, elevators, central
air conditioning systems, and built-in
safes and vaults.
(d) Other Structures and Facilities. Includes costs of acquisitions and improvements of real property (i.e. structures and facilities other than buildings); for example, airfield pavements,

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1845.7101–1

48 CFR Ch. 18 (10–1–02 Edition)

harbor and port facilities, power production facilities and distribution systems, reclamation and irrigation facilities, flood control and navigation aids,
utility systems (heating, sewage, water
and electrical) when they serve several
buildings or structures, communication systems, traffic aids, roads and
bridges, railroads, monuments and memorials, and nonstructural improvements such as sidewalks, parking
areas, and fences. Contractors shall report other structures and facilities
with a unit acquisition cost of $100,000
or more and a useful life of two years
or more.
(e) Leasehold improvements. Includes
NASA-funded costs of improvements to
leased buildings, structures, and facilities, as well as easements and right-ofway, where NASA is the lessee or the
cost is charged to a NASA contract.
Contractors shall report leasehold improvements with a unit acquisition
cost of $100,000 or more and a useful life
of two years or more.
(f) Construction in progress. Includes
costs of work in process for the construction of Buildings, Other Structures and Facilities, and Leasehold Improvements to which NASA has title,
regardless of value.
(g) Equipment. Includes costs of commercially available personal property
capable of stand-alone use in manufacturing supplies, performing services, or
any general or administrative purpose
(for example, machine tools, furniture,
vehicles, computers, software, test
equipment, including their accessory
or auxiliary items). Contractors shall
separately report:
(1) The amount for all items with a
unit acquisition cost of $100,000 or more
and a useful life of two years or more;
and
(2) All other items.
(h) Special tooling. Includes costs of
equipment and manufacturing aids
(and their components and replacements) of such a specialized nature
that, without substantial modification
or alteration, their use is limited to development or production of particular
supplies or parts, or performance of
particular services. Examples include
jigs, dies, fixtures, molds, patterns,
taps and gauges. Contractors shall separately report:

(1) The amount for all items with a
unit acquisition cost of $100,000 or more
and a useful life of two years or more;
and
(2) All other items.
(i) Special test equipment. Includes
costs of equipment used to accomplish
special purpose testing in performing a
contract, and items or assemblies of
equipment. Contractors shall separately report:
(1) The amount for all items with a
unit acquisition cost of $100,000 or more
and a useful life of two years or more;
and
(2) All other items.
(j) Material. Includes costs of NASAowned property held in inventory that
may become a part of an end item or be
expended in performing a contract. Examples include raw and processed material, parts, assemblies, small tools
and supplies. Material that is part of
work-in-process is not included. Contractors shall report the amount for all
Materials in inventory, regardless of
unit acquisition cost.
(k) Agency-Peculiar Property. Includes
costs of completed items, systems and
subsystems, spare parts and components unique to NASA aeronautical
and space programs. Examples include
research aircraft, reusable space vehicles, ground support equipment, prototypes, and mock-ups. The amount of
property, title to which vests in NASA
as a result of progress payments to
fixed price subcontractors, shall be included to reflect the pro rata cost of
undelivered agency-peculiar property.
Completed end items which otherwise
meet the definition of Agency-Peculiar
Property, but are destined for permanent operation in space, such as satellites and space probes, shall be reported as Contract Work in Process.
Contractors shall separately report:
(1) The amount for all items with a
unit acquisition cost of $100,000 or more
and a useful life of two years or more;
and
(2) All other items.
(l) Contract work-in-process. Includes
costs of all work-in-process regardless
of value; excludes costs of completed
items reported in other categories. Includes completed end items of property
which otherwise meet the definition of

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National Aeronautics and Space Administration
Agency-Peculiar Property, but are destined for permanent operation in space,
such as satellites and space probes.
[65 FR 54814, Sept. 11, 2000, as amended at 65
FR 82297, Dec. 28, 2000; 66 FR 41806, Aug. 9,
2001]

1845.7101–2 Transfers of property.
A transfer is a change in accountability between and among prime contracts, NASA Centers, and other Government agencies (e.g., between contracts of the same NASA Center, contracts of different NASA Centers, a
contract of one NASA Center to another, a NASA Center to a contract of
another NASA Center, and a contract
to another Government agency or its
contract). To enable NASA to properly
control and account for transfers, they
shall
be
adequately
documented.
Therefore, procurement, property, and
financial organizations at NASA Centers must effect all transfers of accountability, although physical shipment and receipt of property may be
made directly by contractors. The procedures described in this section shall
be followed to provide an administrative and audit trail, even if property is
physically shipped directly from one
contractor
to
another.
Property
shipped between September 1 and September 30, inclusively, shall be accounted for and reported by the shipping contractor, regardless of the
method of shipment, unless written
evidence of receipt at destination has
been received. Repairables provided
under fixed price repair contracts that
include the clause at 1852.245–72, Liability for Government Property Furnished for Repair or Other Services, remain accountable to the cognizant
NASA Center and are not reportable on
NF 1018; repairables provided under a
cost-reimbursement contract, however,
are accountable to the contractor and
reportable on NF 1018. All materials
provided to conduct repairs are reportable, regardless of contract type.
(a) Approval and notification. The contractor must obtain approval of the
contracting officer or designee for
transfers of property before shipment.
Each shipping document must contain
contract numbers, shipping references,
property classifications in which the
items are recorded (including Federal

1845.7101–2

Supply Classification group (FSC)
codes for equipment), unit acquisition
costs (as defined in 1845.7101–3, Unit Acquisition Cost), original acquisition
dates for items with a unit acquisition
cost of $100,000 or more and a useful life
of two years or more, and any other appropriate identifying or descriptive
data. Where the DD Form 250, Material
Inspection and Receiving Report, is
used, the FSC code will be part of the
national stock number (NSN) entered
in Block 16 or, if the NSN is not provided, the FSC alone shall be shown in
Block 16. The original acquisition date
shall be shown in Block 23, by item.
Other formats, such as the DD Form
1149, Requisition and Invoice/Shipping
Document, should be clearly annotated
with the required information. Unit acquisition costs shall be obtained from
records maintained pursuant to FAR
Part 45 and this Part 1845, or, for
uncompleted items where property
records have not yet been established,
from such other record systems as are
appropriate such as manufacturing or
engineering records used for work control and billing purposes. Shipping contractors shall furnish a copy of the
shipping document to the cognizant
property administrator. Shipping and
receiving contractors shall promptly
notify the financial management office
of the NASA Center responsible for
their respective contracts when accountability for NASA property is
transferred to, or received from, other
contracts, contractors, NASA Centers,
or Government agencies. Copies of
shipping or receiving documents will
suffice as notification in most instances.
(b) Reclassification. If property is
transferred to another contract or contractor, the receiving contractor shall
record the property in the same property classification and amount appearing on the shipping document. For example, when a contractor receives an
item from another contractor that is
identified on the shipping document as
equipment, but that the recipient intends to incorporate into special test
equipment, the recipient shall first
record the item in the equipment account and subsequently reclassify it as

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1845.7101–3

48 CFR Ch. 18 (10–1–02 Edition)

special test equipment. Reclassification of equipment, special tooling, special test equipment, or agency-peculiar
property requires prior approval of the
contracting officer or a designee.
(c) Incomplete documentation. If contractors receive transfer documents
having insufficient detail to properly
record the transfer (e.g., omission of
property classification, FSC, unit acquisition cost, acquisition date, etc.)
they shall request the omitted data directly from the shipping contractor or
through the property administrator as
provided in FAR 45.505–2. The contracting officer shall assist the Government Property Administrator and the
receiving contractor to obtain all required information for the receiving
contractor to establish adequate property records.
[65 FR 54815, Sept. 11, 2000, as amended at 66
FR 41806, Aug. 9, 2001]

1845.7101–3 Unit acquisition cost.
(a) The unit acquisition cost shall include all costs incurred to bring the
property to a form and location suitable for its intended use. The following
is representative of the types of costs
that shall be included, when applicable:
(1) Amounts paid to vendors or other
contractors.
(2) Transportation charges to the
point of initial use.
(3) Handling and storage charges.
(4) Labor and other direct or indirect
production costs (for assets produced
or constructed).
(5) Engineering, architectural, and
other outside services for designs,
plans, specifications, and surveys.
(6) Acquisition and preparation costs
of buildings and other facilities.
(7) An appropriate share of the cost
of the equipment and facilities used in
construction work.
(8) Fixed equipment and related installation costs required for activities
in a building or facility.
(9) Direct costs of inspection, supervision, and administration of construction contracts and construction work.
(10) Legal and recording fees and
damage claims.
(11) Fair values of facilities and
equipment donated to the Government.
(b) Acquisition cost shall include,
where appropriate, for contractor ac-

quired Special Test Equipment, Special
Tooling, Agency-Peculiar Property and
Contract Work-In-Process, related fees,
or a pro rata portion of fees, paid by
NASA to the contractor. Situations
where inclusion of fees in the acquisition cost would be appropriate are
those in which the contractor designs,
develops, fabricates or purchases property for NASA and part of the fees paid
to the contractor by NASA are related
to that effort.
(c) The use of weighted average
methodologies is acceptable for valuation of Material.
(d) Contractors shall report unit acquisition costs using records that are
part of the prescribed property or financial control system as provided in
this section. Fabrication costs shall be
based on approved systems or procedures and include all direct and indirect costs of fabrication.
(e) Only modifications that improve
an item’s capacity or extend its useful
life two years or more and that cost
$100,000 or more shall be reported on
the NF 1018 on the $100,000 & Over line.
The costs of any other modifications,
excluding routine maintenance, will be
reported on the Under $100,000 line. If
an item’s original unit acquisition cost
is less than $100,000, but a single subsequent modification costs $100,000 or
more, that modification only will be
reported as an item $100,000 or more on
subsequent NF 1018s. The original acquisition cost of the item will continue
to be included in the under $100,000
total. The quantity for the modified
item will remain ‘‘1’’ and be reported
with the original acquisition cost of
the item. If an item’s acquisition cost
is reduced by removal of components so
that its remaining acquisition cost is
under $100,000, it shall be reported as
under $100,000.
(f) The computation of work in process shall include all direct and indirect
costs of fabrication, including associated systems, subsystems, and spare
parts and components furnished or acquired and charged to work in process
pending incorporation into a finished
item. These types of items make up
what is sometimes called production
inventory and include programmed
extra units to cover replacement during the fabrication process (production

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National Aeronautics and Space Administration
spares). Also included are deliverable
items on which the contractor or a subcontractor has begun work, and materials issued from inventory. Work in
Process shall include the unit acquisition cost of completed end items of
property which otherwise meet the definition of Agency-Peculiar Property,
but which are destined for permanent
operation in space, such as satellites
and space probes.
[65 FR 54815, Sept. 11, 2000, as amended at 66
FR 41806, Aug. 9, 2001]

1845.7101–4 Types of deletions from
contractor property records.
Contractors shall report the types of
deletions
from
contract
property
records as described in this section.
(a) Lost, damaged or destroyed. Deletion amounts that result from relief
from responsibility under FAR 45.503
granted during the reporting period.
(b) Transferred in Place. Deletion
amounts that result from transfer of
property to a follow-on prime contract
or other prime contract with the same
contractor.
(c) Transferred to NASA Center accountability. Deletion amounts that result from transfer of accountability to
the NASA Center responsible for the
contract, whether or not items are
physically moved.
(d) Transferred to another NASA Center. Deletion amounts that result from
transfer of accountability to a NASA
Center other than the one responsible
for the contract, whether or not items
are physically moved.
(e) Transferred to another Government
agency. Deletion amounts that result
from transfer of property to another
Government agency.
(f) Purchased at cost/returned for credit.
Deletion amounts that result from contractor purchase or retention of contractor acquired property as provided
in FAR 45.605–1, or from contractor returns to suppliers under FAR 45.605–2.
(g) Disposed of through plant clearance
process. Deletions other than transfers
within the Federal Government, e.g.,
donations to eligible recipients, sold at
less than cost, or abandoned/directed
destruction.
(h) Other. Types of deletion other
than those reported in paragraph (a)
through (g) of this section such as

1845.7102

those resulting from reclassifications
(e.g. from equipment to agency-peculiar property).
[65 FR 54816, Sept. 11, 2000, as amended at 66
FR 41806, Aug. 9, 2001]

1845.7101–5 Contractor’s privileged financial and business information.
If a transfer of property between contractors involves disclosing costs of a
proprietary nature, the contractor
shall furnish unit acquisition costs
only on copies of shipping documents
sent to the shipping and receiving
NASA Centers.
[65 FR 54816, Sept. 11, 2000, as amended at 66
FR 41806, Aug. 9, 2001]

1845.7102 Instructions for preparing
DD Form 1419.
(a) The contractor shall enter the essential information covering Sections I
and II before submission of DD Form
1419, DOD Industrial Plant Equipment
Requisition, to the Industrial Property
Officer (IPO). The IPO shall review
each submission for completeness and
authenticity. Incomplete or invalid requests shall be returned for correction.
(b) When a suitable item is allocated
in Section IV, inspection of the equipment is recommended. Notification of
acceptance or rejection of the item offered must reach NASA within 30 days
after allocation. A copy of the DD
Form 1419, or equivalent format, will
serve as the clearance document to inspect the equipment at the storage
site. Note acceptance or rejection of
the item, without inspection or after
inspection in Section VI. If the item is
acceptable, execute Section VII. Cite
the NASA appropriation symbol where
applicable in Section VII.
(c) The IPO shall assign a requisition
number to each DD Form 1419, or
equivalent format request.
(d) Next will be a four-digit entry
comprised of the last digit of the current calendar year and the Julian date
of the year. For example, April 15, 1997,
would be written as 7095 (April 15 being
the 95th day of the year). The last
entry will be a four-digit number from
0001 to 9999 to sequentially number requisition forms prepared on the same
date. For example, the ninth requisition prepared on April 15, 1997, would
be
7095–0009,
preceded
by
the

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1845.7102

48 CFR Ch. 18 (10–1–02 Edition)

FEDSTRIP/MILSTRIP Activity Address Code. When submitting subsequent DD Forms 1419, or equivalent
format, related to the item requested,
the IPO shall use the same requisition
number and add the alpha code to the
end of the requisition number to indicate a second or third action on the
basic request. Alpha ‘‘A’’ would indicate a second request, ‘‘B’’ a third, etc.
In this manner, all actions, correspondence, etc., relative to a given request
can be identified at all levels of processing by the use of the requisition
number.
(e) Detailed directions for completing
the DD Form 1419 follow. The contractor may elect to provide the required data in an equivalent format,
which complies with these directions.
Section I
Item Description. To ensure adequate
screening, the item description must be
complete. For single-purpose equipment or general-purpose equipment
with special features, requests must
contain detailed descriptive data as to
size and capacities, setting forth special operating features or particular
operations required to be performed by
the item.
Block 1. Not applicable.
Block 2. Enter the manufacturer’s
name and Federal Supply Code for
manufacturer (Cataloging Handbook
H4–1) of the item requested.
Block 3. Enter the manufacturer’s
model style, or catalog number assigned to the equipment being requisitioned. Always use the model number, if available. The style number is
the next preference. Enter ‘‘None’’ in
this block if the model, style or catalog
number is not known.
Block 4. Enter the first four digits of
the National Stock Number, if known.
Block 5. Not applicable.
Block 6. Self-explanatory.
Block 7. Place an ‘‘X’’ in the applicable block to indicate whether you desire to physically inspect the item before acceptance.
Block 8. Self-explanatory.
Block 9. Enter the complete description of the item. Continue the description in Block 53 if additional space is
needed.

Section II
Block 10. Enter the contractor’s
name, street address, city, state, and
zip code from which the requisition is
being initiated. The address should be
the one to which inquiries of a technical nature will be referred. Specify
the telephone number of an individual
who will respond to inquiries concerning the request.
Block 11. Enter the contract number
or document number authorizing acquisition of the items shown in Section
I. This normally will be a facility contract number. Otherwise, it should be a
purchase order or procurement request
number.
Block 12. Self-explanatory.
Block 13. Not applicable.
Block 14. Disregard the ‘‘Military’’
block. Show the NASA contract number and program for which the item is
to be used.
Block 15. Enter the specific function
to be performed by the equipment.
When applicable, enter the tolerances,
capacities, specifications, etc., that the
equipment must satisfy.
Block 16. Determine the date the item
must be installed to meet production
requirements. From this date deduct
the estimated number of days required
for installation. Enter the adjusted
date in this block.
Block 17. Enter the date by which
NASA must issue a Certificate of Nonavailability. Determine the date by
subtracting the acquisition lead time
and 30 days administrative lead time
from the date shown in Block 16.
Block 18. Enter the Defense Priority
and Allocations System (DPAS) rating
assigned to the contract or anticipated
purchase order, if applicable.
Block 19. Place an ‘‘X’’ in the appropriate box. If for replacement, identify
the item being replaced and the reason
for replacement.
Block 20. Place an ‘‘X’’ in the appropriate box. Show the appropriate symbol if the answer is ‘‘yes.’’
Block 21. Not applicable.
Blocks 22 and 23. In addition to the official’s title and signature, type the
signing official’s name, office symbol
or name, and telephone number plus
extension. The company representative

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National Aeronautics and Space Administration
who prepares and submits the requirement to the cognizant NASA certifying
office should sign.
Block 24. Self-explanatory.
Block 25a. Not applicable.
Block 25b. Enter the name and address of the installation certifying the
requirement.
Block 25c. This block is for signature
of the property administrator or contracting officer at plant level.
Block 25d. Self-explanatory.
Block 25e. This block is for the signature of NASA installation official certifying the requirement.
Block 25f. Self-explanatory.
Section III
Blocks 26–29. Self-explanatory.
Section IV
N/A
Section V
Complete this section if equipment is
unavailable.
Section VI
Blocks 44–47. The requesting official
signing Section II, Block 23, shall complete Section VI and shall list reasons
for non-acceptance in Section VIII, Remarks, or on a separate document attached to the DD Form 1419.
Section VII
Block 48. Enter the complete name,
street address, city, state, and zip code
of the contractor or installation to
which the item is to be shipped. Indicate railhead and truck delivery points
when other than the address named.
Blocks 49 and 50. Self-explanatory.
Blocks 51 a. and b. Ensure that NASA
appropriation symbols are included
with the work order number.
Block 51c. Enter the NASA appropriation symbol chargeable for any special
work ordered (e.g., rebuild, repair, or
accessory replacement).
Block 51d. Enter the NASA installation and office symbol for the organization that will make payment for transportation and packing, crating, and
handling.
Block 52. Self-explanatory.

1845.7202
Section VIII

Block 53. This block can be used to
expand or explain entries made in
Blocks 1 through 52. When requisitioning equipment from excess listings,
identify the issuing office, list number,
date, control number, and item number
assigned to the equipment. When requesting equipment from DOD inventories, refer to DOD instructions.

Subpart 1845.72—Contract
Property Management
1845.7201

Definitions.

Supporting responsibility, as used in
this subpart, relates to the assignment
of a subcontract, or a portion of a
prime contract being performed at a
secondary location of the prime contractor, to a property administrator
other than the individual assigned to
the prime location.
Property control system, as used in this
subpart, identifies a contractor’s internal management program encompassing the protection of, preservation
of, accounting for, and control of property from its acquisition through disposition.
1845.7202

General.

This subpart describes major elements of the NASA Contract Property
Management Program. It provides
guidance to NASA installation personnel responsible for NASA contract
property (NASA personal property in
the possession of contractors). It applies to all NASA installation personnel charged with this responsibility,
including industrial property officers
and specialists, property administrators, and plant clearance officers. It
also provides detailed procedures for
property administration. The NASA
Contract Property Management Program includes the following three
major elements:
(a) Performance of property administration and plant clearance by DOD
under delegations from NASA, pursuant to 1842.101.
(b) Performance of property administration and plant clearance by NASA
under certain situations, pursuant to
1842.203.

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1845.7203

48 CFR Ch. 18 (10–1–02 Edition)

(c) Maintenance of property administration and plant clearance functional
oversight, regardless of delegations.
1845.7203 Delegations of property administration and plant clearance.
When delegated to DOD, property administration and plant clearance are
performed in accordance with DOD’s
regulations and procedures, as amended by the NASA Letter of Contract Administration Delegation, Special Instructions on Property Administration
and Plant Clearance. These Special Instructions are developed by the Headquarters Office of Management Systems and Facilities Logistics Management Office (Code JLG), and are available from that office upon request. The
contracting officer shall issue the Special Instructions with delegations
whenever Government property will be
involved. Additional or more tailored
property instructions are not proscribed but must be coordinated with
Code JLG before issuance.
1845.7204 Retention of property administration and plant clearance.
NASA may occasionally retain the
property administration and plant
clearance function, such as for contract work performed at the installation awarding the contract and not
subject to the clause at 1852.245–71, Installation-Accountable
Government
Property. In these cases, property administration shall be performed in accordance with 1845.3 through 1845.6, and
plant clearance shall be performed in
accordance with FAR Subpart 45.6 and
1845.6. Under the clause at 1852.245–71,
property administration and plant
clearance are neither delegated nor retained; they are simply not required
because the property is treated as installation rather than contract property.
1845.7205 Functional
oversight
of
property administration and plant
clearance.
NASA contracting officers retain
functional management responsibility
for their contracts. Utilization of the
contract administration services of another Government agency in no way relieves NASA contracting officers of
their ultimate responsibility for the

proper and effective management of
contracts. The functional management
responsibility for contract property is
described in this section. Beyond individual contracting officers, each NASA
installation has designated an industrial property officer to manage and
coordinate property matters among the
various contracting officers, technical
officials, contractor officials, and delegated property administrators and
plant clearance officers. Generally,
that individual is responsible for the
entire contract property management
function outlined below; the installation is responsible for the entire function regardless of how it is organized
and distributed. The responsibilities
are:
(a) Provide a focal point for all management of contract property, including
Government
property
(Government-furnished and contractoracquired) provided to universities as
well as to industry.
(b) Provide guidance to contracting
and other personnel on the NASA property provisions.
(c) To the extent feasible, review
property provisions of acquisition
plans, solicitations, contracts, and
modifications for potential problems.
Propose changes as necessary.
(d) To the extent feasible, participate
in pre-award surveys/post-award orientations when significant amounts of
Government property will be involved.
(e) Ensure that vesting-of-title determinations are made and documented
pursuant to FAR 35.014(b).
(f) Maintain effective communications with delegated property administrators and plant clearance officers to
keep fully informed about contractor
performance and progress on any property control problems.
(1) Obtain and review property control system survey summaries for all
contracts for which property administration has been delegated. Advise
Code JLG of any severe or continuing
problems.
(2) Provide property administrators
copies of all pertinent contract property documentation.
(g) Review and analyze NASA Form
1018, NASA Property in the Custody of
Contractors.

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National Aeronautics and Space Administration
(h) Negotiate, or ensure the negotiation of, facilities contracts when required by FAR 45.302 and 1845.302. Advise Code JLG annually of new and
completed facilities contracts.
(i) Review property administrators’
approvals of relief of responsibility for
lost, damaged, and destroyed property
and question any excessive or repetitive approvals.
(j) When appropriate, make recommendations to source and performance evaluation boards regarding property management and award fee criteria and evaluations regarding property management.
(k) Monitor plant clearance status to
preclude delays in contract closeout.
(l) Maintain contract property files
for all transactions and correspondence
associated with each contract. Upon receipt of Standard Form 1424, Inventory
Disposal Report, and DD Form 1593,
Contract Administration Completion
Record, or equivalents, merge all property records for the contract and forward for inclusion with the official
completed file.
(m) Perform on-site property administration and plant clearance when
they are not delegated to DOD and the
property is not subject to the clause at
1852.245–71.
1845.7206 Responsibilities of property
administrators and plant clearance
officers.
1845.7206–1 Property administrators.
(a) When property administration is
not delegated to DOD, the property administrator shall evaluate the contractor’s management and control of Government property and ascertain whether the contractor is effectively complying with the contract provisions.
The property administrator’s responsibilities include—
(1) Developing and applying a system
survey program for each contractor
under the property administrator’s
cognizance;
(2) Evaluating the contractor’s property control system and approving or
recommending disapproval;
(3) Advising the contracting officer of
any (i) contractor noncompliance with
approved procedures and (ii) other significant problems the property administrator cannot resolve, and recom-

1845.7206–2

mending appropriate action, which
may include disapproval of the contractor’s property control system;
(4) Resolving property administration matters as necessary with the contractor’s management, personnel from
Government procurement and logistics
activities, and representatives of the
NASA Headquarters Office of the Inspector General, the Defense Contract
Audit Agency (DCAA), and other Government agencies; and
(5) Recognizing the functions of other
Government personnel having cognizance of Government property and
obtaining their assistance when required. (These functions include, but
are not limited to, contract audit,
quality assurance, engineering, pricing,
and other technical areas. Assistance
and advice on matters involving analyses of the contractor’s books and accounting records and on any other
audit matters deemed appropriate shall
be obtained from the cognizant auditor.)
(b) The participation of property administrators (or other Government industrial property personnel) in preaward surveys/post-award orientations
is
required
whenever
significant
amounts of Government property will
be involved, in order to reveal and resolve property management problems
early in the acquisition cycle.
1845.7206–2 Plant clearance officers.
When plant clearance is not delegated to DOD, NASA plant clearance
officers shall be responsible for—
(a) Providing the contractor with instructions and advice regarding the
proper preparation of inventory schedules;
(b) Accepting or rejecting inventory
schedules;
(c) Conducting or arranging for inventory verification;
(d) Initiating prescribed screening
and effecting resulting actions;
(e) Final plant clearance of contractor inventory;
(f) Pre-inventory scrap determinations, as appropriate;
(g) Evaluating the adequacy of the
contractor’s procedures for property
disposal;
(h) Determining the method of disposal;

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1845.7207

48 CFR Ch. 18 (10–1–02 Edition)

(i) Surveillance of any contractorconducted sales;
(j) Accounting for all contractor inventory reported by the contractor;
(k) Advising and assisting, as appropriate, the contractor, the Supply and
Equipment
Management
Officer
(SEMO) and other Federal agencies in
all actions relating to the proper and
timely disposal of contractor inventory;
(l) Approving the method of sale,
evaluating bids, and approving sale
prices for any contractor-conducted
sales;
(m) Recommending the reasonableness of selling expenses related to any
contractor-conducted sales;
(n) Securing antitrust clearance, as
required; and
(o) Advising the contracting officer
on all property disposal matters.
1845.7207
erty.

Declaration of excess prop-

A problem often disclosed by system
analysis is the failure of a contractor
to report Government property not
needed in performance of the contract
(excess). The property administrator
shall fully document and report any
such finding to the administrative contracting officer. After a report of excess received from a contractor has
been referred to the plant clearance officer for screening and ultimate disposition, the property administrator
shall ensure prompt disposition. For
centrally reportable plant equipment,
the property administrator shall—
(a) Assure the preparation and submission of individual reports required
of the contractor;
(b) Verify the permit certifications
required by the forms; and
(c) Transmit the report to the NASA
Industrial Property Officer.
1845.7208

Closure of contracts.

1845.7208–1
nation.

Completion

or

termi-

Upon completion or termination of a
contract, the property administrator
shall—
(a) Monitor the actions of the contractor in returning excess Government property not referred to the plant
clearance officer; and

(b) Advise the cognizant plant clearance officer as to the existence at a
contractor’s plant of residual property
requiring disposal.
1845.7208–2 Final review and closing
of contracts.
(a) When informed that disposition of
Government property under a contract
has been completed, the property administrator shall perform a final review and sign a determination that—
(1) Disposition of Government property has been properly accomplished
and documented;
(2) Adjustment documents, including
any request of the contractor for relief
from responsibility, have been processed to completion;
(3) Proceeds from disposals or other
property transactions, including adjustments, have been properly credited
to the contract or paid to the Government as directed by the contracting officer;
(4) All questions regarding title to
property fabricated or acquired under
the contract have been resolved and appropriately documented; and
(5) The contract property control
record file is complete and ready for retirement.
(b) When final review pursuant to
paragraph (a) of this section reveals
that such action is proper, the property
administrator shall accomplish and
sign a DD Form 1593, Contract Administration Completion Record, or equivalent.
(c) The executed DD Form 1593 shall
be forwarded to the contracting officer,
the Property Summary Data Record
shall be so annotated, and the contracting officer shall include it in the
contract file.
1845.7209

Special subjects.

1845.7209–1 Government property at
alternate locations of the prime
contractor
and
subcontractor
plants.
(a) Government property provided to
a prime contractor may be located at
other plants of the prime contractor or
at subcontractor locations. The prime
contractor is accountable and responsible to the Government for this property.

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National Aeronautics and Space Administration
(b) A Government property administrator cognizant of the location of the
property shall normally be designated
to (1) perform required surveys of the
property control system and (2) exercise surveillance over the property as a
supporting responsibility.
(c) If the property administrator determines that supporting property administration is required, he or she
shall write the cognizant contract administration office asking that a property administrator be assigned. The request for supporting property administration shall include—
(1) The name and address of the
prime contractor;
(2) The prime contract number;
(3) The name and address of the alternate location of the prime contractor,
or of the subcontractor where the property will be located;
(4) A listing of the property being
furnished, or, if property is being acquired locally, a statement to this effect; and
(5) A copy of the subcontract or other
document under which the property
will be furnished or acquired.
(d) Concurrent with the action cited
in paragraph (c) of this section, the
property administrator shall ascertain
whether the prime contractor will perform the necessary reviews and surveillance with the contractor’s own personnel, or elect to rely upon the system approval and continuing surveillance by a supporting property administrator of the property control system
at the alternate location or subcontractor plant. If the prime contractor
advises that it will accept the findings
of a supporting property administrator,
a statement in writing to that effect
shall be obtained. If the prime contractor does not so elect, it will be required to perform the requisite reviews
and surveillance and document its actions and findings.
(e) If a single item or limited quantities of property will be located at an
alternate location or subcontractor
plant, the property administrator may
determine that supporting property administration is unnecessary, provided—
(1) The prime contractor’s records
adequately reflect the location and use
of the property;

1845.7209–2

(2) The nature of the property is such
that the possibility of its use for unauthorized purposes is unlikely; and
(3) The nature of the property is such
that a program of preventive maintenance is not required.
(f) When supporting property administration will not be requested, the
services of a property administrator in
the contract administration office cognizant of the site where the property is
located may be requested on an occasional basis of special reviews or such
other support as may be necessary. Repeated requests for assistance indicate
a requirement for requesting supporting property administration.
1845.7209–2 Loss, damage, or destruction of Government property.
(a) Normally, contract provisions
provide for assumption of risk of loss,
damage, or destruction of Government
property as described by the following:
(1) Sealed-bid and certain negotiated
fixed-price contracts provide that the
contractor assumes the risk for all
Government property provided under
the contract (see the clause at FAR
52.245–2, Government Property (FixedPrice Contracts)).
(2) Other negotiated fixed-price contracts provide that the contractor assumes the risk for all Government
property provided under the contract,
with the exceptions set forth in the
clause at FAR 52.245–2, Alternate I and
Alternate II.
(3) Cost-reimbursement contracts
(see the clause at FAR 52.245–5, Government Property (Cost-Reimbursement,
Time-and-Material,
or
Labor-Hour
Contracts)) provide that the Government assumes the risk for all Government property provided under the contract when there is no willful misconduct or lack of good faith of any of
the contractor’s managerial personnel
as defined in the contract.
(4) There are certain events for which
the Government does not assume the
risk of loss, damage, or destruction of
Government property, such as risks the
contract expressly requires the contractor to insure against. Therefore,
before reaching a conclusion or making
a determination, the contracting officer shall obtain property administrator
review of the contract clause and shall

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48 CFR Ch. 18 (10–1–02 Edition)

obtain advice from appropriate legal
counsel on questions of legal meaning
or intent.
(5) ‘‘Willful misconduct’’ may involve
any intentional or deliberate act or
failure to act causing, or resulting in,
loss, damage, or destruction of Government property.
(6) ‘‘Lack of good faith’’ may involve
gross neglect or disregard of the terms
of the contract or of appropriate directions of the contracting officer or the
contracting officer’s authorized representatives. Examples of lack of good
faith may be demonstrated by the failure of the contractor’s managerial personnel to establish and maintain proper training and supervision of employees and proper application of controls
in compliance with instructions issued
by authorized Government personnel.
(b) If part of the contractor’s system
is found to be unsatisfactory, the property administrator shall increase surveillance of that part to prevent, to the
extent possible, any loss, damage, or
destruction of Government property.
The property administrator shall give
special attention to reasonably ensuring that any loss, damage, or destruction occurring during a period when a
contractor’s system is not approved is
identified before approval or reinstatement of approval.
1845.7209–3 Loss, damage, or destruction of Government property while
in contractor’s possession or control.
(a) The property administrator shall
require the contractor to report any
loss, damage, or destruction of Government property in its possession or control (including property in the possession or control of subcontractors) as
soon as it becomes known.
(b) When physical inventories, consumption analyses, or other actions
disclose consumption of Government
property considered unreasonable by
the property administrator or loss,
damage, or destruction of Government
property not reported by the contractor, the property administrator
shall prepare a statement of the items
and amount involved. This statement
shall be furnished to the contractor for
investigation and submission of a written report to the property adminis-

trator relative to the incidents reported.
(c) The contractor’s reports referenced in paragraphs (a) and (b) of
this section shall contain factual data
as to the circumstances surrounding
the loss, damage, destruction, or excessive consumption, including—
(1) The contractor’s name and the
contract number;
(2) A description of items lost, damaged, destroyed, or unreasonably consumed;
(3) The cost of property lost, damaged, destroyed, or unreasonably consumed and cost of repairs in instances
of damage (in event actual cost is not
known, use a reasonable estimate);
(4) The date, time (if pertinent), and
cause or origin of the loss, damage, destruction, or consumption;
(5) Known interests in any commingled property of which the Government
property lost, damaged, destroyed, or
unreasonably consumed is (or was) a
part;
(6) Insurance, if any, covering the
Government property or any part or interest in any commingled property;
(7) Actions taken by the contractor
to prevent further loss, damage, destruction, or unreasonable consumption and to prevent repetition of similar incidents; and
(8) Other facts or circumstances relevant to determining liability and responsibility for repair or replacement.
(d) The property administrator shall
investigate the incident to the degree
required to reach a valid and supportable conclusion as to the contractor’s
liability for the loss, damage, destruction, or unreasonable consumption
under the terms of the contract, and
the course of action required to conclude the adjustment action. When required, the assistance of the quality assurance representative, industrial specialist, insurance officer, legal counsel,
or other technician will be secured.
When the contractor acknowledges liability, the property administrator
shall forward a copy of the credit
memorandum or other adjusting document to the administrative contracting
officer and auditor, if appropriate, to

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National Aeronautics and Space Administration
assure proper credit. If analysis of contract provisions and circumstances establishes that the loss, damage, destruction, or consumption constitutes
a risk assumed by the Government, the
property administrator shall so advise
the contractor in writing, thereby relieving the contractor of responsibility
for the property. A copy of the documentation and notification to the contractor shall be retained in the Contract Property Control Data File for
the contract.
(e)(1) If the property administrator
concludes that the contractor is liable
for the loss, damage, destruction, or
unreasonable consumption of Government property, he or she shall forward
the complete file with conclusions and
recommendations to the contracting
officer for review and determination.
The file shall contain—
(i) A statement of facts as supported
by investigation;
(ii) Recommendations as to the contractor’s liability and its amount;
(iii) Recommendations as to action
to be taken with regard to third party
liability, if appropriate;
(iv) Requirements for disposition, repair, or replacement of damaged property; and
(v) Other pertinent comments.
(2) A copy of the contracting officer’s
determination shall be furnished to the
contractor and the property administrator, and a copy shall be retained in
the contracting officer’s files. The
property administrator’s copy shall be
filed in the Contract Property Control
Data File for the contract when all pertinent actions, such as compensation
to the Government or repair or replacement of the property, have been completed.
1845.7209–4

Financial reports.

The property administrator is responsible for obtaining financial reports as prescribed in 1845.505–14 for all
assigned contracts. Reports shall be accumulated, reviewed and distributed as
required. Contractors are required to
submit separate reports on each contract that contains the property reporting clause (see 1852.245–73) except
as noted in 1845.7101–4(c).

1845.7210–1

1845.7210 Contractor utilization
Government property.

1845.7210–1 Utilization surveys.
(a) The property administrator is responsible for ensuring that the contractor has effective procedures for
evaluating Government property utilization. However, when necessary, the
contract administration office shall
provide specialists qualified to perform
the technical portion of utilization surveys to assist the property administrator in determining the adequacy of
these procedures.
(b) Upon assignment of an initial
contract under which Governmentowned plant equipment in particular
will be provided to a contractor, the
property administrator shall ensure
that the contractor has established effective procedures and techniques for
controlling its utilization. The property administrator, with the assistance
of technical specialists, if necessary,
shall evaluate these procedures. A
record of the evaluation shall be prepared and become a part of the property administration file. If the procedures are determined inadequate, the
record shall identify the deficiencies
and the corrective actions necessary. If
the deficiencies are not corrected by
the contractor, the property administrator shall promptly refer the matter
to the contracting officer.
(c) The property administrator shall
perform annual surveys of the contractor’s procedures related to utilization
of Government-owned plant equipment.
At contractor facilities having a substantial quantity of plant equipment,
the surveys should normally be conducted on a continual basis, reviewing
equipment utilization records and
physically observing a group of
preselected items during each portion
of the survey. Surveys shall be conducted to the degree determined necessary, considering the findings of
prior surveys and the contractor’s performance history in identifying and declaring equipment excess to authorized
requirements. The contractor shall be
required to justify, by specific Government programs, the retention of all
Government-owned plant equipment.
The property administrator shall make
maximum use of contractor’s machine

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48 CFR Ch. 18 (10–1–02 Edition)

loading data, order boards, production
planning
records,
machine
time
records, and other production control
methods.
(d) The property administrator shall
conduct a special survey when a significant change occurs in the contractor’s production schedules, such as a
termination, completion of a contract,
or a major adjustment in a program.
Special surveys may be limited to a
given department, activity, or division
of a contractor’s operation.
(e) In the absence of adequate justification for retention, the contractor
shall identify and report Governmentowned plant equipment in accordance
with FAR 45.502(g) and 45.509–2(b)(4).
Items that are part of approved inactive package plants or standby lines
are exempted from utilization surveys.
The contracting officer shall ascertain
periodically whether existing authorizations for standby or lay-away requirements are current.
1845.7210–2 Records of surveys.
The property administrator shall prepare a record incorporating written
findings,
conclusions,
and
recommendations at the conclusion of
each survey. If appropriate, the property administrator’s record may be
limited to a statement expressing concurrence with the reports of other specialists. The property administrator
shall retain one copy of each record in
the property administration file.

PART 1846—QUALITY ASSURANCE
Sec.
1846.000

AUTHORITY: U.S.C. 2473(c)(1).
SOURCE: 62 FR 14024, Mar. 25, 1997, unless
otherwise noted.

1846.000 Scope of part.
The Government has a duty to assure
that appropriated funds are spent wisely. That duty is fulfilled in part
through surveillance. Surveillance may
be conducted through ‘‘insight’’ (i.e.,
monitoring of selected metrics and/or
milestones) or ‘‘oversight’’ (i.e., Government review and concurrence with
contractor decisions). The decision to
use insight or oversight is based on an
assessment of the risk inherent in the
activity being surveilled. Surveillance
must be conducted whether or not the
contract effort has been structured as
performance-based.

Subpart 1846.3—Contract Clauses

Scope of part.

1846.370 NASA contract clauses.
(a) The contracting officer shall insert the clause at 1852.246–70, Mission
Critical Space System Personnel Reliability Program, in solicitations and
contracts involving critical positions
designated in accordance with 14 CFR
1214.5, Mission Critical Space System
Personnel Reliability Program.
(b) The contracting officer shall insert the clause at 1852.246–73, Human
Space Flight Item, in solicitations and
contracts for human space flight hardware and flight-related equipment if
the highest available quality standards

NASA contract clauses.

Subpart 1846.4—Government Contract
Quality Assurance
1846.401
1846.470

Subpart 1846.7—Warranties
1846.703 Criteria for use of warranties.
1846.703–70 Additional criteria.
1846.704 Authority for use of warranties.
1846.770 Administration.

[65 FR 37060, June 13, 2000]

Subpart 1846.3—Contract Clauses
1846.370

1846.670–5 Forms.
1846.671 Contract quality assurance on shipments between contractors.
1846.672 Preparing DD Forms 250 and 250c.
1846.672–1 Preparation instructions.
1846.672–2 Consolidated shipments.
1846.672–3 Multiple consignee instructions.
1846.672–4 Correction instructions.
1846.672–5 Invoice instructions.
1846.672–6 Packing list instructions.
1846.672–7 Receiving instructions.
1846.673 Distribution of DD Forms 250 and
250c.
1846.674 Contract clause.

General.
Contract clause.

Subpart 1846.6—Material Inspection and
Receiving Reports
1846.670 Introduction.
1846.670–1 General.
1846.670–2 Applicability.
1846.670–3 Use.
1846.670–4 Multiple shipments.

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National Aeronautics and Space Administration
are necessary to ensure astronaut safety.

Subpart 1846.4—Government
Contract Quality Assurance
1846.401 General. (NASA supplements
paragraph (a))
(a) The quality assurance surveillance plan (QASP) which the project office prepares in conjunction with the
statement of work is preliminary. It
reflects the Government’s surveillance
approach relative to the perceived programmatic risk, and is written at a
general rather than specific level because the risks will not be completely
identified at that time. After contract
award, contracting officers shall ensure
that the QASP is revised to reflect the
risks associated with the successful
proposal. This final QASP shall not be
included in the contract, but should be
periodically reviewed to ensure its currency.
[65 FR 37060, June 13, 2000]

1846.470 Contract clause.
The contracting officer may insert a
clause substantially as stated at
1852.246–71, Government Contract Quality Assurance Functions, in solicitations and contracts to specify the location(s) of quality assurance functions.

Subpart 1846.6—Material
Inspection and Receiving Reports
1846.670

Introduction.

1846.670–1 General.
(a) This Subpart contains procedures
and instructions for use of the Material
Inspection
and
Receiving
Report
(MIRR) (DD Form 250 series) and commercial shipping/packing lists used to
evidence Government contract quality
assurance (CQA).
(b) MIRRs are used to document
CQA, acceptance of supplies and services, and shipments. MIRRs are not
used for—
(1) Shipments by subcontractors not
made to the Government;
(2) Shipment of contractor inventory
(see FAR 45.601); or
(3) Movement of Government property unless for original acquisition.

1846.670–5

1846.670–2 Applicability.
(a) This subpart applies to all deliveries of supplies or services acquired by
or for NASA except:
(1) Acquisitions under FAR part 13;
(2) Negotiated subsistence acquisitions; or
(3) Contracts for which the end item
is a technical or scientific report.
(b) The DD Form 250 may be used for
imprest fund purchases, purchase orders, delivery orders placed against
Federal Supply Schedule contracts, delivery orders placed against indefinitedelivery contracts, or delivery orders
placed against blanket purchase agreements, or when the purchasing, requisitioning, or ordering document provides
for inspection and/or acceptance.
(c) When NASA provides CQA and/or
acceptance services for non-NASA activities, the MIRR shall be prepared in
accordance with the instructions of
this subpart unless the contract specifies otherwise.
1846.670–3 Use.
The DD Form 250 is a multipurpose
report used for—
(a) Providing evidence of CQA at origin or destination;
(b) Providing evidence of acceptance
at origin or destination;
(c) Packing list documentation;
(d) Receiving;
(e) Shipping;
(f) Contractor invoice; and
(g) Contractor invoice support.
1846.670–4 Multiple shipments.
(a) If the ‘‘shipped to,’’ ‘‘marked for,’’
‘‘shipped
from,’’
‘‘CQA,’’
and
‘‘acceptance’’ data are the same for
more than one shipment made on the
same day under the same contract in a
single car, truck, or other vehicle, one
MIRR shall be prepared to cover all
such shipments.
(b) If the volume of the shipments
precludes the use of a single car, truck,
or other vehicle, a separate MIRR shall
be provided for each vehicle.
1846.670–5 Forms.
(a) Contractors may obtain MIRR
forms from the contracting office at no
cost.
(b) Contractors may print forms, provided their format and dimensions are

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48 CFR Ch. 18 (10–1–02 Edition)

identical to the MIRR forms printed by
the Government.
1846.671 Contract quality assurance
on shipments between contractors.
(a) The supplier’s commercial shipping document/packing list shall indicate performance of required CQA actions at subcontract level.
The following entries shall be made
on the document/packing list:
Required CQA of items has been performed.
llllllllllllllllllllllll
(Signature of Authorized Government Representative)
llllllllllllllllllllllll
(Date)
llllllllllllllllllllllll
(Typed Name and Office)

(b) Distribution for Government purposes shall be one copy each—
(1) With shipment;
(2) For the Government representative at consignee (via mail); and
(3) For the Government representative at consignor.
1846.672 Preparing DD Forms 250 and
250c.
1846.672–1

Preparation instructions.

(a) General. (1) Dates shall utilize
seven spaces consisting of the last two
digits of the year, three-alpha month
abbreviation, and two digits for the
day (e.g., 96SEP24).
(2) Addresses shall consist of the
name, street address/P.O. box, city,
State, and ZIP code.
(3) The data entered in the blocks at
the top of DD Form 250C shall be identical to the comparable entries in
Blocks 1, 2, 3, and 6 of the DD Form 250.
(4) Overflow data of the DD Form 250
shall be entered in Block 16 or in the
body of the DD Form 250c with block
cross reference. Additional DD Form
250c sheets solely for continuation of
Block 23 data shall not be numbered or
distributed as part of the MIRR.
(b) Classified information. Classified
information shall not appear on the
MIRR, nor shall the MIRR be classified.
(c) Block 1—PROC. INSTRUMENT
IDEN. (CONTRACT). Enter the contract
number, with its identifying center
prefix, as contained in the contractual

document, including any call/order
number.
(d) Block 2—SHIPMENT NO. (1) The
shipment number is a three-alpha character prefix and a four-character numeric or alpha-numeric serial number.
(i) The prefix shall be controlled and
assigned by the prime contractor and
shall consist of three alpha characters
for each ‘‘shipped from’’ address (Block
11). The prefix shall be different for
each ‘‘Shipped From’’ address and shall
remain constant throughout the contract period.
(ii) The serial number for the first
shipment under a prime contract from
each ‘‘shipped from’’ address shall be
0001; subsequent shipments under that
prime contract shall be consecutively
numbered. Alpha-numerics shall be
used when more than 9,999 numbers are
required. Alpha-numerics shall be serially assigned, with the alpha in the
first position, followed by the three-position numeric serial number. The
alpha-numeric sequence shall be (the
letters I and O shall not be used) A001
through A999 (10,001 through 10,999);
B001 through B999 (11,001 through
11,999); to Z999. When this series is
completely used, numbering shall revert to 0001.
(2) The shipment number of the initial shipment shall be reassigned when
a ‘‘replacement shipment’’ is involved
(see paragraph (r)(4)(iv) of this section).
(3) The prime contractor shall control deliveries and on the last shipment
of the contract shall suffix the shipment number with a ‘‘Z’’ in addition to
that required for line items (see Block
17). If the contract final shipment is
from other than the prime contractor’s
plant, the prime contractor may elect
(i) To direct the subcontractor to suffix the ‘‘Z’’ or
(ii), On receipt of the subcontractor
final shipment information, to correct
the DD Form 250 covering the last shipment from the prime contractor’s plant
by adding a ‘‘Z’’ to that shipment number.
(e) Block 3—DATE SHIPPED. Enter
the date the shipment is released to
the carrier or the date of completion of
services. If the shipment will be released after the date of CQA and/or acceptance, enter the estimated date of

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National Aeronautics and Space Administration
release. When the date is estimated,
enter an ‘‘E’’ after it. Distribution of
the MIRR shall not be delayed for
entry of the actual shipping date.
Reissurance of the MIRR is not required to show the actual shipping
date.
(f) Block 4—B/L TCN. When applicable, enter the commercial or Government bill of lading number after ‘‘B/L’’;
and the Transportation Control Number after ‘‘TCN.’’
(g) Block 5—DISCOUNT TERMS. (1)
The Contractor may enter the discount
in terms of percentages on all copies of
the MIRR.
(2) When the MIRR is used as an invoice, see 1846.672–5.
(h) Block 6—INVOICE. (1) The contractor may enter the invoice number
and actual or estimated date on all
copies of the MIRR. When the date is
estimated, enter an ‘‘E’’ after the date.
Do not correct MIRRs other than invoice copies to reflect the actual date
of invoice submission.
(2) When the MIRR is used as an invoice, see 1846.672–5.
(i) Block 7—PAGE/OF. Consecutively
number the pages comprising the
MIRR. On each page, enter the total
number of pages of the MIRR.
(j) Block 8—ACCEPTANCE POINT.
Enter an ‘‘S’’ for origin or ‘‘D’’ for destination as specified in the contract as
the point of acceptance. Enter an alphabetic ‘‘O’’ for other if the point of
acceptance is not specified in the contract.
(k) Block 9—PRIME CONTRACTOR.
Enter the code and address.
(l) Block 10—ADMINISTERED BY.
Enter the code and address of the contracting office cited in the contract.
(m) Block 11—SHIPPED FROM/CODE/
FOB. (1) Enter the code and address of
the ‘‘shipped from’’ location. If identical to Block 9, enter ‘‘See Block 9.’’
(2) For performance of services that
do not require delivery of items upon
completion, enter the code and address
of the location at which the services
were performed. If the DD Form 250
covers performance at multiple locations or if identical to Block 9, enter
‘‘See Block 9.’’
(3) Enter on the same line and to the
right of ‘‘FOB’’ an ‘‘S’’ for origin or
‘‘D’’ for destination as specified in the

1846.672–1

contract. Enter an alphabetic ‘‘O’’ if
the FOB point cited in the contract is
other than origin or destination.
(n) Block 12—PAYMENT WILL BE
MADE BY. Enter the address of the
payment office cited in the contract.
(o) Block 13—SHIPPED TO/CODE.
Enter the code and address from the
contract or shipping instructions.
(p) Block 14—MARKED FOR/CODE.
Enter the code and address from the
contract or shipping instructions.
(q) Block 15—ITEM NO. Enter the
item number used in the contract. If
four or fewer digits are used, position
them to the left of the vertical dashed
line. Where a six-digit identification is
used, enter the last two digits to the
right of the vertical dashed line.
(r) Block 16—STOCK/PART NO./DESCRIPTION. (1) Enter, as applicable,
for each item, using single spacing between each line item, the following:
(i) The Federal Stock Number (FSN)
or noncatalog number and, if applicable, prefix or suffix. When a number is
not provided or it is necessary to supplement the number, include other
identification such as the manufacturer’s name or Federal Supply Code (as
published in Cataloging Handbook H4–
1), and part numbers. Additional part
numbers may be shown in parentheses.
Also enter the descriptive noun of the
item nomenclature and, if provided,
the Government-assigned management/
material control code. In the case of
equal-kind supply items, the first entry
shall be the description without regard
to kind (e.g., ‘‘Resistor’’). Below this
description, enter the contract item
number in Block 15 and stock/part
number followed by the size or type in
Block 16.
(ii) On the next printing line, if required by the contract for control purposes, enter the make, model, serial
number, lot, batch, hazard indicator,
and/or similar description.
(iii) On the next printing line, enter
the FEDSTRIP requisition number(s)
when provided in the contract or shipping instructions.
(2) For service items, enter the word
‘‘SERVICE’’ followed by a short description of less than 20 characters. Do
not complete items 4, 13, and 14 when
material is not shipped.

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48 CFR Ch. 18 (10–1–02 Edition)

(3) For all contracts administered by
the Defense Contract Management
Command, with the exception of fast
pay procedures, enter and complete the
following:
Gross Shipping Wt.ll(State weight in
pounds only).
(4) Enter on the next line the following as appropriate (entries may be
extended through Block 20). When entries apply to more than one item in
the MIRR, enter them only once after
the last item and reference the applicable item numbers.
(i) Enter in capital letters any special handling instructions/limits for
material environmental control (e.g.,
temperature, humidity, aging, freezing,
and shock).
(ii) When an FSN is required by, but
not cited in, a contract and has not
been furnished by the Government,
shipment may be made at the direction
of the contracting officer. Enter the
authority for the shipment.
(iii)
When
Government-furnished
property (GFP) is included with or incorporated into the line item, enter
‘‘GFP’’.
(iv) When the shipment consists of
replacements for supplies previously
furnished, enter in capital letters
‘‘REPLACEMENT SHIPMENT’’ (see
paragraph (s)(3) of this section for replacement indicators.)
(v) For items shipped with missing
components, enter and complete the
following: ‘‘Item(s) shipped short of the
following component(s): FSN or comparable identification llll, Quantity llll, Estimated Value llll,
Authority llll.’’
(vi) When shipment is made of components that were short on a prior
shipment, enter and complete the following: ‘‘These components were listed
as shortages on Shipment Number
llll, date shippedllll.’’
(vii) When shipments involve drums,
cylinders, reels, containers, skids, etc.,
designated as returnable under contract provisions, enter and complete
the following: ‘‘Return to llll,
Quantity llll, Item llll, Ownership (Government/contractor).’’
(viii) Enter shipping container number(s), the type, and the total number

of the shipping container(s) included in
the shipment.
(ix) The MIRR shall be used to record
and report the waivers and deviations
from contract specifications, including
the source and authority for the waiver
or deviation (e.g., the contracting office authorizing the waiver or deviation and the identification of the authorizing document).
(x) For shipments involving discount
terms, enter ‘‘DISCOUNT EXPEDITE’’
in at least one-inch outline-type letters.
(xi) When test/evaluation results are
a condition of acceptance and are not
available before shipment, the following note shall be entered if the shipment is approved by the contracting officer: ‘‘Note: Acceptance and payment
are contingent upon receipt of approved test/evalution results.’’ The
contracting officer shall advise (A) the
consignee of the results (approval/disapproval) and (B) the contractor to
withhold invoicing pending attachment
to its invoice of the approved test/evaluation results.
(xii) The copy of the DD Form 250 required to support payment for destination acceptance (top copy of the four
with shipment) or Alternative Release
Procedure (ARP) origin acceptance
(additional copy furnished to the Quality Assurance Representative (QAR))
shall
be
identified
by
entering
‘‘PAYMENT COPY’’ in approximately
one-half-inch outline-type letters with
‘‘FORWARD TO BLOCK 12 ADDRESS’’
in approximately one-quarter-inch letters immediately below. Do not obliterate any other entries.
(xiii) A double line shall be drawn
completely across the form following
the last entry.
(s) Block 17—QUANTITY SHIP/REC’D.
(1) Enter the quantity shipped, using
the unit of measure indicated in the
contract for payment. When a second
unit of measure is used for purposes
other than payment, enter the appropriate quantity directly below in parentheses.
(2) Enter a ‘‘Z’’ below the first digit
of the quantity when the total quantity of the item is delivered, including
variations within contract terms; and
all shortages on items previously
shipped short are delivered.

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National Aeronautics and Space Administration
(3) If a replacement shipment is involved, enter below the first digit of
the quantity the letter ‘‘A’’ top designate first replacement, ‘‘B’’ for second replacement, and so forth. The
final shipment indicator ‘‘Z’’ shall not
be used when a final line item shipment is replaced.
(t) Block 18 UNIT. Enter the abbreviation of the unit of measure indicated in
the contract for payment. When a second unit of measure is indicated in the
contract for purposes other than payment or is used for shipping purposes,
enter the abbreviation of the second
unit of measure directly below in parentheses. Authorized abbreviations
are listed in MIL–STD–129, Marking for
Shipping and Storage.
(u) Block 19—UNIT PRICE. Enter the
unit price on all NASA copies whenever
the MIRR is used for voucher or receiving purposes.
(v) Block 20—AMOUNT. Enter the extended amount when the unit price is
entered in Block 19.
(w) Block 21—CONTRACT QUALITY
ASSURANCE. The words ‘‘conform to
contract’’ contained in the printed
statements in Blocks A and B relate to
contract obligations pertaining to
quality and to the quantity of the
items on the report. The statements
shall not be modified. Notes taking exception shall be entered in Block 16 or
on attached supporting documents
with block cross reference.
(1) ‘‘A. ORIGIN.’’
(i) The authorized Government representative shall—
(A) Place an ‘‘X’’ when applicable in
the appropriate CQA and/or acceptance
box(es) to evidence origin CQA and/or
acceptance. When the contract requires
CQA at destination in addition to origin CQA, an asterisk shall be entered
at the end of the statement and an explanatory note in Block 16;
(B) Sign and date; and
(C) Enter the typed, stamped, or
printed name of the signer and office
code.
(2) ‘‘B. DESTINATION.’’
(i) When acceptance at origin is indicated in Block 21A, no entries shall be
made in Block 21B.
(ii) When acceptance of CQA and acceptance are at destination, the au-

1846.672–3

thorized Government representative
shall—
(A) Place an ‘‘X’’ in the appropriate
box(es);
(B) Sign and date; and
(C) Enter the typed, stamped, or
printed name of the signer and office
code.
(x) Block 22—RECEIVER’S USE. This
block shall be used by the receiving authority (Government or contractor) to
denote receipt, quantity, and condition. The receiving activity shall enter
in this block the date the supplies arrived. For example, when off-loading or
in-checking occurs subsequent to the
day of arrival of the carrier at the installation, the date of the carrier’s arrival is the date received for purposes
of this block.
(y) Block 23—CONTRACTOR USE
ONLY. This block is provided and reserved for contractor use.
1846.672–2 Consolidated shipments.
When individual shipments are held
at the contractor’s plant for authorized
transportation consolidation to a single destination on a single bill of lading, the applicable DD Forms 250 may
be prepared at the time of CQA or acceptance prior to the time of actual
shipment (see Block 3).
1846.672–3 Multiple consignee instructions.
The contractor may prepare one
MIRR when the identical item(s) of a
contract is to be shipped to more than
one consignee, with the same or varying quantities, and the shipment requires origin acceptance. Prepare the
MIRR using the procedures in this subpart with the following changes:
(a) Blocks 2, 4, 13, and, if applicable,
14—Enter ‘‘See Attached Distribution
List.’’
(b) Block 15—The contractor may
group item numbers for identical
stock/part number and description.
(c) Block 17—Enter the ‘‘total’’ quantity shipped by item or, if applicable,
grouped identical items.
(d) Use the DD Form 250c to list each
individual ‘‘Shipped To’’ and ‘‘Marked
For’’ with—
(1) Code(s) and complete shipping address and a sequential shipment number for each;

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1846.672–4

48 CFR Ch. 18 (10–1–02 Edition)

(2) Item number(s);
(3) Quantity;
(4) The FEDSTRIP requisition number and quantity for each when provided in the contract or shipping instructions; and
(5) If applicable, bill of lading number
and mode of shipment code.
1846.672–4

Correction instructions.

When, because of errors or omissions,
it is necessary to correct the MIRR
after distribution, it shall be revised by
correcting the original master and distributing the corrected form. The corrections shall be made as follows:
(a) Circle the error and place the corrected information in the same block.
If space is limited, enter the corrected
information in Block 16, referencing
the error page and block.
(b) When corrections are made to
Blocks 15 and 17, enter the words
‘‘CORRECTIONS
HAVE
BEEN
VERIFIED’’ on page 1. The authorized
Government representative shall date
and sign immediately below the statement. This verification statement and
signature are not required for other
corrections.
(c) MIRRs shall not be corrected for
Block 19 and 20 entries.
(d) Clearly mark pages of the MIRR
requiring correction with the words
‘‘CORRECTED COPY’’, avoiding obliteration of any other entries. Even
though corrections are made on continuation sheets only, also mark page 1
‘‘CORRECTED COPY’’.
(e) Page 1 and only those continuation pages marked ‘‘CORRECTED
COPY’’ shall be distributed to the initial distribution. A complete MIRR
with corrections shall be distributed to
new addressee(s) created by error corrections.
1846.672–5

Invoice instructions.

The Government encourages, but
does not require, contractors to use
copies of the MIRR as an invoice in
lieu of a commercial form. If the MIRR
is used as an invoice, four copies shall
be prepared and forwarded to the payment office as follows:
(a) Complete Blocks 5, 6, 19, and 20.
(b) Mark, in letters approximately
one
inch
high,
the
first
copy

‘‘ORIGINAL INVOICE’’ and the remaining three copies ‘‘INVOICE COPY’’.
(c) Forward the four copies to the
payment office (Block 12 address).
1846.672–6

Packing list instructions.

Copies of the MIRR may be used as a
packing list. The packing list copies
shall be in addition to the copies of the
MIRR required for distribution (see
1846.673)
and
shall
be
marked
‘‘PACKING LIST’’.
1846.672–7

Receiving instructions.

When the MIRR is used for receiving
purposes, procedures shall be as prescribed by local directives. If acceptance or CQA and acceptance of supplies
are required upon arrival at destination, see Block 21B for instructions.
1846.673 Distribution of DD Forms 250
and 250c.
(a) DD Forms 250 and 250c shall be
distributed in accordance with installation procedures.
(b) The contractor is responsible for
distributing DD Forms 250 and 250c in
accordance with the provisions of the
contract or instructions of the contracting officer.
1846.674

Contract clause.

The contracting officer shall insert
the clause at 1852.246–72, Material Inspection and Receiving Report, in solicitations and contracts, except those
using simplified acquisition procedures
or where the only deliverable items are
technical or scientific reports. Insert
the number of copies to be prepared.
Paragraph (a) may be changed to specify advance copies or separate distribution of the DD Form 250.

Subpart 1846.7—Warranties
1846.703
ties.

Criteria for use of warran-

1846.703–70

Additional criteria.

In deciding whether to use a warranty clause, at least the following factors shall be considered in addition to
those at FAR 46.703:
(a) Cost of correction or replacement,
either by the contractor or by another
source, in the absence of a warranty;

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National Aeronautics and Space Administration
(b) The warranty as a deterrent
against the furnishing of defective or
nonconforming supplies;
(c) Whether the contractor’s quality
program is reliable enough to provide
adequate protection without a warranty, or, if not, whether a warranty
would cause the contractor to institute
an effective quality program;
(d) Reliance on ‘‘brand-name’’ integrity; and
(e) Whether a warranty is regularly
given for a commercial component of a
more complex end item.
1846.704 Authority for use of warranties. (NASA paragraphs (1), (2) and
(3))
(1) A warranty clause may be used
when it is found to be in the best interests of the Government, after an analysis of the factors listed in 1846.703–70
and FAR 46.703.
(2) Except for the warranty of commercial items (see FAR 12.404 and
46.709), and warranties contained in
Federal, military, or construction
specifications, the decision to use a
warranty clause or to include a warranty provision in a specification other
than a Federal, military, or construction specification shall be made only
upon the written authorization of the
procurement officer or a designee. This
decision may be made either for individual acquisitions or classes of acquisitions.
(3) Warranties required by applicable
architect-engineer specifications shall
be included in construction contracts.
1846.770

Subpart 1847.3—Transportation in Supply
Contracts
1847.304 Determination of delivery terms.
1847.304–3 Shipments from CONUS for overseas delivery.
1847.304–370 NASA export privilege.
1847.305 Solicitation provisions, contract
clauses, and transportation factors.
1847.305–10 Packing, marking, and consignment instructions.
1847.305–13 Transit arrangements.
1847.305–70 NASA contract clauses.

Subpart 1847.5—Ocean Transportation by
U.S.-Flag Vessels
1847.506

PART 1847—TRANSPORTATION

Procedures.

Subpart 1847.70—Protection of the Florida
Manatee
1847.7001

Contract clause.

AUTHORITY: 42 U.S.C. 2473(c)(1).
SOURCE: 62 FR 14028, Mar. 25, 1997, unless
otherwise noted.

Subpart
1847.2—Contracts
for
Transportation or for Transportation-Related Services
1847.200

Scope of subpart.

1847.200–70

[64 FR 51079, Sept. 21, 1999]

Subpart 1847.3—Transportation in
Supply Contracts
1847.304 Determination
terms.

Sec.
1847.200 Scope of subpart.
1847.200–70 Charter of aircraft.

of

delivery

1847.304–3 Shipments from CONUS for
overseas delivery.
1847.304–370

Subpart 1847.2—Contracts for Transportation or for Transportation-Related
Services

Charter of aircraft.

When acquiring aircraft by charter,
contracting officers shall comply with
NPG 7900.3, Aircraft Operations Management.

Administration.

When notified of a defect in warranted items, the contracting officer
should ascertain whether the warranty
is currently in effect and ensure that
the contractor is given proper and
timely notice of the defect.

1847.304–370

NASA export privilege.

NASA has export licensing privileges
for moving commodities to foreign destinations. Contracting officers shall request the advice of the Center Export
Administrator to ensure full and appropriate use is made of these privileges.

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1847.305

48 CFR Ch. 18 (10–1–02 Edition)

1847.305 Solicitation provisions, contract clauses, and transportation
factors.
1847.305–10 Packing, marking, and
consignment instructions.
In contracts providing for delivery
f.o.b. origin and shipment under Government bills of lading, consignment
instructions may be limited to the
mail
address
of
the
consignee
(receiving activity), provided the contract instructions state: ‘‘Shipment
other than mail shall be consigned as
indicated on the Government bill of
lading furnished to the contractor.’’
1847.305–13 Transit
arrangements.
(NASA supplements paragraph (a))
(a)(3)(ii) When the provision at FAR
52.247–56 is used, the solicitation shall
state that offers will be evaluated on
the basis of the lowest overall cost to
the Government, including transportation costs to NASA from point of origin to final destination, taking into account any applicable transit privileges.
1847.305–70 NASA contract clauses.
(a) The contracting officer may insert a clause substantially as stated at
1852.247–72, Advance Notice of Shipment, in solicitations and contracts
when the f.o.b. point is destination and
special Government assistance is required in the delivery or receipt of the
items.
(b) The contracting officer shall insert a clause substantially as stated at
1852.247–73, Bills of Lading, in f.o.b. origin solicitations and contracts.
[62 FR 14028, Mar. 25, 1997, as amended at 67
FR 38908, June 6, 2002]

nent details of ocean shipments including, but not limited to, the ports of origin and destination of shipments, commodity descriptions, gross weight,
freight revenue, name of vessel, operator of vessel, and date of loading. The
register shall be maintained current
and organized so that adherence to the
Cargo
Preference
Act
can
be
ascertained at all times. To the maximum practicable extent, compliance
with the 50-percent minimum requirements of the Cargo Preference Act
shall be maintained on a quarter-year
basis; any deficiencies in maintaining
compliance shall be corrected by the
end of the calendar year.
(ii) On the basis of the registers
maintained under paragraph (d)(i) of
this section, the official maintaining
the register shall submit quarterly reports reflecting ocean shipments to the
Division of National Cargo, Office of
Market Development, Maritime Administration, Department of Transportation, Washington, DC, 20590. Negative
reports are required when applicable.

Subpart 1847.70—Protection of the
Florida Manatee
1847.7001

Contract clause.

The contracting officer shall insert
the clause at 1852.247–71, Protection of
the Florida Manatee, in solicitations
and contracts when deliveries or vessel
operations, dockside work, or disassembly functions under the contract
will involve use of waterways inhabited
by manatees. The clause shall also be
included in applicable subcontracts
(including vendor deliveries).

PART 1848—VALUE ENGINEERING

Subpart 1847.5—Ocean
Transportation by U.S.-Flag Vessels

Subpart 1848.1—Policies and Procedures
1847.506 Procedures. (NASA supplements paragraph (d))
(d)(i) The transportation officer in
each installation shall establish and
maintain a register to reflect adherence to the Cargo Preference Act. The
register shall contain data related to
shipments made by the installation
and by NASA contractors. Where no
transportation officer is available, it
shall be maintained by the contracting
office. The register shall contain perti-

Sec.
1848.102 Policies.
1848.103 Processing
value
engineering
change proposals.
1848.104 Sharing arrangements.
1848.104–3 Sharing collateral savings.

Subpart 1848.2—Contract Clauses
1848.201 Clauses for supply or service contracts.
AUTHORITY: 42 U.S.C. 2473(c)(1).

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SOURCE: 62 FR 14029, Mar. 25, 1997, unless
otherwise noted.

collateral savings will exceed the benefits to be derived.
[65 FR 12485, Mar. 9, 2000]

Subpart 1848.1—Policies and
Procedures

Subpart 1848.2—Contract Clauses

1848.102 Policies. (NASA supplements
paragraphs (a) and (f))
(a) The Assistant Administrator for
Procurement (Code HS) is the approval
authority for exemptions.
(f) In calculating instant or future
contract savings on firm-fixed-price
contracts when the parties have not set
out a specific figure for profit, the contracting officer shall use the total contract price as the basis for calculating
the savings.
1848.103 Processing value engineering
change proposals. (NASA supplements paragraph (a))
(a) Upon receipt of a VECP, the contracting officer shall promptly forward
it to the technical officer responsible
for the contract with the following information:
(i) Date of VECP receipt;
(ii) Date for notifying the contractor
of VECP acceptance or rejection;
(iii) Notification of the potential for
awarding concurrent, future, or collateral savings to the contractor if the
VECP is accepted;
(iv) Request for a technical evaluation, with complete rationale for recommended acceptance or rejection, to
include if acceptance is recommended:
(A) An estimate of the type of savings, Government costs, etc., that can
be expected from its acceptance;
(B) A procurement request setting
forth the specification changes to be
used in any contract modification accepting the VECP in whole or in part;
and
(C) Additional funds if acceptance of
the VECP results in negative instant
contract savings.
(v) Technical evaluation due date.
1848.104

Pt. 1849

Sharing arrangements.

1848.104–3 Sharing collateral savings.
(NASA supplements paragraph (a))
(a) The contracting officer is authorized to make the determination that
the cost of calculating and tracking

1848.201 Clauses for supply or service
contracts. (NASA supplements paragraphs (a), (b), (c), and (d))
(a)(6) The Assistant Administrator
for Procurement (Code HS) is the approval authority for exemptions.
(b) The contracting officer shall not
insert the clause at FAR 52.248–1, Value
Engineering, either with or without its
Alternates, in an R&D contract where
the statement of work is essentially an
incorporation by reference of the prospective contractor’s proposal. If any
other part of the statement of work in
such a contract reflects a Government
specification that might benefit from
application of VE techniques, the contracting officer shall consider inserting
the VE incentive clause at FAR 52.248–
1 with any applicable Alternate(s), and
establish the applicability of the clause
to that part.
(c) Except as prescribed in paragraph
(b) of this section, the contracting officer shall insert the clause at FAR
52.248–1 with its Alternate I in initial
production contracts for major systems, and major systems R&D contracts for full-scale development, unless the contracting officer determines
in writing that its use is inappropriate.
Use of Alternate I is appropriate for an
R&D major systems contract only if
the contract specifications contain detailed requirements that lend themselves to VE.
(d) The contracting officer shall insert the clause at FAR 52.248–1 with its
Alternate II under the conditions prescribed in paragraph (c) of this section

PART 1849—TERMINATION OF
CONTRACTS
Subpart 1849.1—General Principles
Sec.
1849.101 Authorities and responsibilities.
1849.101–70 NASA authorities and responsibilities.
1849.101–71 Termination authority.
1849.102 Notice of termination.
1849.102–70 Prior clearance of significant
contract terminations.

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1849.101

48 CFR Ch. 18 (10–1–02 Edition)

1849.102–71 Prior clearance of contract terminations resulting from a major breach
of safety or security.
1849.105 Duties of termination contracting
officer after issuance of notice of termination.
1849.105–70 Termination docket checklist.
1849.110 Settlement
negotiation
memorandum.
1849.110–70 Memorandum contents.
1849.111 Review of proposed settlements.

Subpart 1849.5—Contract Termination
Clauses
1849.505 Other termination clause.
1849.505–70 NASA contract clause.
AUTHORITY: 42 U.S.C. 2473(c)(1).
SOURCE: 62 FR 14030, Mar. 25, 1997, unless
otherwise noted.

Subpart 1849.1—General
Principles
1849.101 Authorities and responsibilities.
1849.101–70 NASA authorities and responsibilities.
(a) Installations shall appoint a termination contracting officer (TCO) (see
FAR 2.101) to perform specific duties
relating to contract termination as one
of that individual’s primary functions.
In addition to the responsibilities described in this part and FAR part 49,
such duties should include—
(1) Reviewing NASA Forms 1412, Termination Authority;
(2) Reviewing the contract and related documents before issuing the notice of termination, to ensure protection of the Government’s rights under
the contract; and
(3) Issuing notices of termination, reinstatement, and recision to contractors;
(b) Contracting offices shall utilize
the services of the Department of Defense and other Government agencies
whenever possible to administer and
negotiate settlement of terminated
contracts. Delegation of the negotiation of termination settlement function shall be made in accordance with
FAR subpart 42.2 and 1842.2.
1849.101–71 Termination authority.
NASA Form 1412, Termination Authority, is prescribed for use by NASA
installations when initiating action to

terminate a contract for convenience
or default. The project manager or the
activity initiating the procurement request should initiate the action by
completing NASA Form 1412 and submitting it to the contracting officer.
1849.102

Notice of termination.

1849.102–70 Prior clearance of significant contract terminations.
(a) Congressional notification is required for any termination involving a
reduction in employment of 100 or
more contractor employees. Proposed
terminations must be cleared through
the Headquarters Office of Legislative
Affairs (Code LB) before release of the
termination notice, or any information
on the proposed termination, to the
contractor. Proposed terminations expected to result in a reduction of fewer
than 100 should be similarly cleared if
the installation believes it to be significant.
(b) The contracting officer shall submit the following information to Code
LB, and a copy to the Office of Procurement (Code HS), as soon as possible after the decision to terminate is
made. Until clearance is obtained, this
information shall be treated as ‘‘For
Official Use Only’’ unless the information is classified.
(1) Contract number.
(2) Date of award.
(3) Type of award.
(4) Name of company.
(5) Nature of contract or end item.
(6) Reasons for the termination.
(7) Contract price of items terminated.
(8) Total number of contractor employees involved, including the Government’s estimate of the number that
may be discharged.
(9) Anticipated impact on the company and the community.
(10) Name of the community affected.
(11) Area labor category.
(12) Whether contractor is large or
small business.
(13) Any known impact on disadvantaged employment programs.
(14) Total number of subcontractors
involved and the impact in this area, if
known.
(15) Unclassified draft of suggested
press release.

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National Aeronautics and Space Administration
(c) To minimize termination costs,
Code LB shall act promptly on the request and provide a response not later
than two working days after receipt of
the information in paragraph (b) of this
section.
1849.102–71 Prior clearance of contract terminations resulting from a
major breach of safety or security.
The Assistant Administrator for Procurement (Code HS) must be notified
prior to taking any action to terminate
because of a major breach of safety or
security.
[65 FR 70316, Nov. 22, 2000]

1849.105 Duties of termination contracting officer after issuance of notice of termination.
1849.105–70 Termination
docket
checklist.
The termination contracting officer
shall complete NASA Form 1413, Termination Docket Checklist.
1849.110 Settlement
memorandum.

negotiation

1849.110–70 Memorandum contents.
The TCO shall include the following
information in the settlement negotiation memorandum. Contractors and
subcontractors are encouraged to use
this format appropriately modified for
subcontract settlements submitted for
review and approval.
(a) General information—(1) Identification. (i) Name and address of the
contractor and any pertinent affiliation between prime contractors and
subcontractors relative to the overall
settlement.
(ii) Names and titles of contractor
and Government personnel who participated in the negotiation.
(2) Description of terminated contract.
(i) Contract number;
(ii) Date of award;
(iii) Contract type;
(iv) General description of contract
items;
(v) Total contract price; and
(vi) Applicable contract termination
provisions and clause.
(3) Termination notice.
(i) Date of the termination notice;
(ii) Effective date of termination;

1849.110–70

(iii) Scope and nature of termination
(complete or partial);
(iv) Items terminated;
(v) Unit prices;
(vi) Total price of items terminated
for fixed-price contracts or the estimated cost and fee applicable to items
terminated for cost-reimbursement
type contracts;
(vii) Whether the termination notice
was amended and, if so, why;
(viii) Whether the contractor stopped
work on the termination effective date
(if it did not, furnish details) and
whether subcontracts were terminated
promptly;
(ix) Any redirection of common items
and return of goods to the contractor’s
suppliers; and
(x) Extent of contract performance
and timely deliveries by the contractor.
(b) Contractor’s settlement proposal—(1) Date and amount. Date and
location where the claim was filed and
its gross amount (if interim settlement
proposals were filed, information shall
be furnished for each claim).
(2) Basis of claim. E.g., inventory,
total cost, or other basis, including an
explanation of any approvals granted
in connection with submission on other
than an inventory basis.
(3) Examination of proposal. Types of
reviews made and by whom (audit, engineering, legal, or other).
(c) Tabular summary of contractor’s
claim and the settlement. The cost elements/items, the amounts claimed, the
Government recommended position
(including auditor, field, and technical
personnel recommendations), and the
negotiated settlement amounts. This
summary shall include, if appropriate,
previously reimbursed and unreimbursed costs applicable to the prime
contractor and subcontractor, previous
profit/fees paid and unpaid; settlement
cost less disposal credit or other credits, and a recapitulation of previous
settlements. The summary of the negotiated settlement shall include the
amount claimed and allowed for contractor and/or subcontractor changes,
disposal, prior payment credits, and
contract price.
(d) Settlement narrative summary.
(1) Contractor’s cost.
(2) Profit/Fee.

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1849.111

48 CFR Ch. 18 (10–1–02 Edition)

(3) Settlement expenses not included
in the audit.
(4) Number and dollar amount of any
subcontractor settlements approved by
the TCO and concluded by the contractor under delegation of authority.
(5) Total amount of any partial payments.
(6) Total of unliquidated progress or
advance payments.
(7) Claims of the Government against
the contractor included in settlement
agreement reservations.
(8) Assignments, including the name
and address of each assignee.
(9) Disposal credits.
(10) Status of plant clearance actions
and all inventory sold, retained, or otherwise properly disposed of in accordance with applicable plant clearance
regulations, including a consolidated
closing plant clearance report, if applicable.
(11) Status of Government property
accountability.
(12) Disposition of any special tooling, if applicable.
(13) Proposed reservations of rights
to the Government or to the contractor.
(e) Recommendation. Amount of the
gross settlement recommended and
TCO statement that it is fair and reasonable to the Government and the
contractor.
(f) TCO Signature and date.
1849.111 Review of proposed settlements. (NASA paragraphs (1) and
(2))
(1) Settlements shall be reviewed in
accordance with center-prescribed procedures.
(2) The TCO may authorize the contract administration office cognizant
of a lower-tier subcontractor grant approval or ratification of proposed subcontractor settlements described in
FAR 49.108–3(c) that are first reviewed
and referred by the prime contractor to
the TCO. This procedure is not applicable to settlements between the contractor and its first tier subcontractors.

Subpart 1849.5—Contract
Termination Clauses
1849.505

Other termination clause.

1849.505–70

NASA contract clause.

The contracting officer shall insert
the clause at 1852.249–72, Termination
(Utilities), in all solicitations and contracts for utilities services.

PART 1850—EXTRAORDINARY
CONTRACTUAL ACTIONS
Subpart 1850.2—Delegation of and
Limitations on Exercise of Authority
Sec.
1850.202

Contract adjustment boards.

Subpart 1850.3—Contract Adjustments
1850.305 Processing cases.
1850.305–70 Submission of request to the
Contract Adjustment Board.
1850.306 Disposition.
1850.306–70 Implementation of the Contract
Adjustment Board’s decision.

Subpart 1850.4—Residual Powers
1850.403 Special procedures for unusually
hazardous or nuclear risks.
1850.403–1 Indemnification requests.
1850.403–170 Subcontractor indemnification
requests.
1850.403–2 Action on indemnification requests.
1850.470 Lead NASA installation.
AUTHORITY: 42 U.S.C. 2473(c)(1).
SOURCE: 62 FR 14031, Mar. 25, 1997, unless
otherwise noted.

Subpart 1850.2—Delegation of
and Limitations on Exercise of
Authority
1850.202

Contract adjustment boards.

14 CFR part 1209, subpart 3, Contract
Adjustment Board, establishes the Contract Adjustment Board (CAB) as the
approving authority to consider and
dispose of requests from NASA contractors for extraordinary contractual
actions.

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National Aeronautics and Space Administration

ance or other customary proof of insurance, that such insurance is either in
force or is available and will be in force
during the indemnified period.

Subpart 1850.3—Contract
Adjustments
1850.305

Processing cases.

1850.305–70 Submission of request to
the Contract Adjustment Board.
(a) After investigating the facts and
issues relevant to the contractor’s request, the contracting officer shall forward the request to the Associate General Counsel for General Law (Code
GG), including in the forwarding letter—
(1) The nature of the case;
(2) The recommended disposition;
and,
(3) If contractual action is recommended, the contracting officer’s
opinion that the action will facilitate
the national defense.
(b) The forwarding letter shall enclose the contractor’s request, all supporting material submitted by the contractor, and any material the contracting officer has obtained while investigating the facts and issues relevant to the request. Any classified information in the material forwarded
shall be so identified.
(c) Electronic submittal is preferred
for unclassified material.
1850.306

1850.403–2

Disposition.

1850.306–70 Implementation
of
the
Contract Adjustment Board’s decision.
(a) The contracting officer shall take
action authorized in the CAB’s decision.
(b) Immediately upon execution, including any required Headquarters approval, of a contract or contract modification or amendment implementing
the CAB decision, the contracting officer shall forward a copy of the contractual document to the Associate General Counsel for General Law (Code
GG).

Subpart 1850.4—Residual Powers
1850.403 Special procedures for unusually hazardous or nuclear risks.
1850.403–1 Indemnification
requests.
(NASA supplements paragraph (a))
(a) The contractor shall also provide
evidence, such as a certificate of insur-

1850.403–170 Subcontractor
nification requests.

Subcontractors shall submit requests
for indemnification to the prime contractor and through higher tier subcontractor(s), as applicable. If the prime
contractor agrees an indemnity clause
should be flowed down to the subcontractor, the prime contractor shall forward its written request for subcontractor indemnification to the cognizant contracting officer for approval
in accordance with FAR 50.403–1. The
prime contractor’s request shall provide information responsive to 1850.403–
1, FAR 50.403–1, and FAR 50.403–2(a) (1),
(2), (4), (5) and (7). The agreed upon definition of the unusually hazardous risk
to be incorporated into the subcontract
shall be the same as that incorporated
in the prime contract.
1850.403–2 Action on indemnification
requests. (NASA supplements paragraphs (a) and (d))
(a) If recommending approval, the
contracting officer shall forward the
required information to the Assistant
Administrator for Procurement (Code
HS), along with the following:
(i) For contracts of five years duration or longer, a determination, with
supporting rationale, whether the indemnification approval and insurance
coverage and premiums should be reviewed for adequacy and continued validity at points in time within the extended contract period.
(ii) A recommended Memorandum of
Decision. In addition to the applicable
requirements of FAR 50.306, the Memorandum of Decision shall contain the
following:
(A) The specific definition of the unusually hazardous risk to which the
contractor is exposed in the performance of the contract(s);
(B) A complete discussion of the contractor’s financial protection program;
and
(C) The extent to, and conditions
under, which indemnification is being
approved for subcontracts.

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1850.470

48 CFR Ch. 18 (10–1–02 Edition)

(d) If approving subcontractor indemnification, the contracting officer shall
document the file with a memorandum
for record addressing the items set
forth in FAR 50.403–2(a) and include an
analysis of the subcontractor’s financial protection program. In performing
this analysis, the contracting officer
shall take into consideration the availability, cost, terms and conditions of
insurance in relation to the unusually
hazardous risk.
1850.470

Lead NASA installation.

(a) Contractors applying for indemnification shall determine which NASA
installation has the highest dollar
amount of contracts for which indemnification is requested. The indemnification request should be submitted
to the procurement officer for that installation, who will then designate a
cognizant contracting officer. Contractors shall submit a single request and
ensure duplicate requests are not submitted by associate divisions, subsidiaries, or central offices of the contractor.
(b) The receiving installation will become the lead installation and will remain so indefinitely. Lead installation
designation may change to another installation if the affected procurement
officers agree to the change. Should a
change occur in the lead installation,
all records related to indemnification
of that contractor shall be transferred
to the gaining installation.

PART 1851—USE OF GOVERNMENT
SOURCES BY CONTRACTORS
Subpart 1851.1—Contractor Use of
Government Supply Sources
Sec.
1851.102 Authorization to use Government
supply sources.
1851.102–70 Contractor acquisition of filing
cabinets.
AUTHORITY: 42 U.S.C. 2473(c)(1).
SOURCE: 62 FR 14032, Mar. 25, 1997, unless
otherwise noted.

Subpart 1851.1—Contractor Use of
Government Supply Sources
1851.102 Authorization to use Government supply sources. (NASA supplements paragraph (e)).
(e) The contracting officer shall use
substantially the following format for
letters authorizing contractor use of
Government supply sources:
SUBJECT: Authorization to Lease, Rent, or
Purchase from General Services Administration (GSA) Supply Sources
(Contractor’s name) lllllllllllll
(Address) llllllllllllllllll

(1) You are hereby authorized to act
for the Government in the following
matters:
(i) The acquisition of supplies and/or
services under Contract No. llll
available for purchase by Government
agencies either directly from GSA
stock or under Federal Supply Schedules, including GSA nonmandatory
ADTS/ADP schedule contracts and
GSA ADP requirements contracts, subject to the limitations set forth in this
authorization.
(ii) The leasing or rental of equipment for use on Contract No. llll
available for lease or rental by Government agencies under Federal Supply
Schedules, including GSA nonmandatory ADTS/ADP schedule contracts and
GSA ADP requirements contracts, subject to the limitations set forth in this
authorization.
(iii) The issuance of tax exemption
certificates in lieu of the payment of
State or other taxes for which the government is not liable on supplies or
services purchased under this authorization.
(2)(i) Purchase orders under GSA
schedules and contracts shall be placed
in accordance with the terms and conditions of the GSA schedule or contract
and this authorization. A copy of this
authorization shall be attached to the
order (unless a copy was previously furnished to the GSA contractor) and
shall contain the following statement:
‘‘This order is placed on behalf of the
National Aeronautics and Space Administration in furtherance of United

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National Aeronautics and Space Administration
States
Government
Contract
No.
llll, pursuant to written authorization dated llll, a copy of which (is
attached) (you have on file). In the
event of any inconsistency between the
terms and conditions of this order and
those of the applicable GSA schedule/
contract, the latter will govern.’’
(ii) Orders for items in the GSA Supply Catalog shall be placed in accordance with the Catalog and this authorization and shall include the address to
which billings are to be sent. Bills are
not issued by GSA until after shipment
has been made and should therefore be
paid promptly. Any necessary adjustments will be made by GSA subsequent
to payment. All orders shall contain
the following statement:
‘‘This order is placed on behalf of the
National Aeronautics and Space Administration in furtherance of United
States
Government
Contract
No.
llll, pursuant to written authorization dated llll, a copy of which (is
attached) (you have on file).’’
(3) (Insert any other provisions and
restrictions.)
(4) The authority hereby granted is
not transferable or assignable.
llllllllllllllllllllllll
(Contracting Officer)

(e)(3) Contracting officers shall use
NPG 4100.1, NASA Materials Inventory
Management Manual, to obtain activity address codes to enable use of
FEDSTRIP and MILSTRIP.
62 FR 14032, Mar. 25, 1997, as amended at 65
FR 46628, July 31, 2000]

1851.102–70 Contractor acquisition of
filing cabinets.
(a) The Contractor officer must approve any planned contractor acquisi-

1851.102–70

tion of filing cabinets whose title will
vest in the Government. The contracting officer shall ensure that the
contractor takes the following actions
before submitting a request for approval:
(1) Transfer inactive records to contractor storage areas;
(2) Dispose of unnecessary records in
accordance with corporate procedures;
(3) Use less expensive shelf filing
methods; and
(4) Take other actions to reduce the
need for filing cabinets.
(b) If after taking the actions in
paragraphs (a)(1) through (4) of this
section, the contractor requires additional filing capacity, it shall submit
for contracting officer approval a request to order filing cabinets. This request shall include a discussion of why
sufficient additional filing capacity is
necessary and shall address the results
of the actions in paragraphs (a) (1)
through (4) of this section. The contracting officer shall review the request in consultation with the Records
Management Officer, the Property and
Supply Officer, and the project officer,
is appropriate.
(c) If the need for filing cabinets is
approved, the contracting officer shall
attempt to fill the need by providing
any available excess items of the type
required through appropriate property
accountability channels. Approved requests that cannot be filled from excess
shall be returned to the contractor
with an authorization to obtain file
cabinets, preferably through GSA.

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SUBCHAPTER H—CLAUSES AND FORMS
PART 1852—SOLICITATION PROVISIONS AND CONTRACT CLAUSES
Sec.
1852.000

Scope of part.

Subpart 1852.1—Instructions for Using
Provisions and Clauses
1852.101 Using FAR part 52.
1852.103 Identification of provisions and
clauses.
1852.103–70 Identification of modified provisions and clauses.
1852.104 Procedures for modifying and completing provisions and clauses.

Subpart 1852.2—Texts of Provisions and
Clauses
1852.203–70 Display of Inspector General
Hotline Posters.
1852.204–74 Central Contractor Registration.
1852.204–75 Security classification requirements.
1852.204–76 Security Requirements for Unclassified Information Technology Resources.
1852.208–81 Restrictions on printing and duplicating.
1852.209–70 Product removal from Qualified
Products List.
1852.209–71 Limitation
of
future
contracting.
1852.209–72 Composition of the contractor.
1852.210–70 Brand name or equal.
1852.211–70 Packaging, handling, and transportation.
1852.212–70 Notice of delay.
1852.212–74 Period of performance.
1852.213–70 Offeror Representations and Certifications—Other
Than
Commercial
Items.
1852.213–71 Evaluation—Other Than Commercial Items.
1852.214–70 Caution to offerors furnishing
descriptive literature.
1852.214–71 Grouping for aggregate award.
1852.214–72 Full quantities.
1852.215–77 Preproposal/pre-bid conference.
1852.215–78 Make or buy program requirements.
1852.215–79 Price adjustment for ‘‘Make- orBuy’’ changes.
1852.215–81 Proposal page limitations.
1852.215–84 Ombudsman.
1852.216–73 Estimated cost and cost sharing.
1852.216–74 Estimated cost and fixed fee.
1852.216–75 Payment of fixed fee.
1852.216–76 Award fee for service contracts.
1852.216–77 Award fee for end item contracts.

1852.216–78 Firm fixed price.
1852.216–80 Task ordering procedure.
1852.216–81 Estimated cost.
1852.216–83 Fixed price incentive.
1852.216–84 Estimated cost and incentive fee.
1852.216–85 Estimated cost and award fee.
1852.216–87 Submission of vouchers for payment.
1852.216–88 Performance incentive.
1852.216–89 Assignment and release forms.
1852.217–70 Property administration and reporting.
1852.217–71 Phased acquisition using downselection procedures.
1852.217–72 Phased acquisition using progressive competition down-selection procedures.
1852.219–73 Small business subcontracting
plan.
1852.219–74 Use of Rural Area Small Businesses.
1852.219–75 Small business subcontracting
reporting.
1852.219–76 NASA 8 percent goal.
1852.219–77 NASA Mentor-Prote´ ge´ program.
1852.219–79 Mentor requirements and evaluation.
1852.223–70 Safety and health.
1852.223–71 Frequency authorization.
1852.223–72 Safety and Health (Short Form).
1852.223–73 Safety and health plan.
1852.223–74 Drug– and alcohol–free workforce.
1852.223–75 Major breach of safety or security.
1852.225–8 Duty-free entry of space articles.
1852.225–70 Export Licenses.
1852.225–72 [Reserved]
1852.227–11 Patent Rights—Retention by the
Contractor (Short Form).
1852.227–14 Rights in data—General.
1852.227–17 Rights in data–Special works.
1852.227–19 Commercial computer software—
Restricted rights.
1852.227–70 New technology.
1852.227–71 Requests for waiver of rights to
inventions.
1852.227–72 Designation of new technology
representative and patent representative.
1852.227–84 Patent rights clauses.
1852.227–85 Invention reporting and rights—
Foreign.
1852.227–86 Commercial computer software—
Licensing.
1852.227–87 Transfer of technical data under
Space Station International Agreements.
1852.228–70 Aircraft ground and flight risk.
1852.228–71 Aircraft flight risks.
1852.228–72 Cross–waiver of liability for
space shuttle services.
1852.228–73 Bid bond.
1852.228–75 Minimum insurance coverage.

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National Aeronautics and Space Administration
1852.228–76 Cross-waiver of liability for
Space Station Activities.
1852.228–78 Cross–waiver of liability for
NASA
Expendable
Launch
Vehicle
launches.
1852.228–80 Insurance—Immunity From Tort
Liability.
1852.228–81 Insurance—Partial
Immunity
From Tort Liability.
1852.228–82 Insurance—Total
Immunity
From Tort Liability.
1852.231–70 Precontract costs.
1852.231–71 Determination of compensation
reasonableness.
1852.232–70 NASA Modification of FAR
52.232–12.
1852.232–77 Limitation of funds (Fixed-Price
Contract).
1852.232–79 Payment for on-site preparatory
costs.
1852.232–81 Contract funding.
1852.232–82 Submission
of
requests
for
progress payments.
1852.233–70 Protests to NASA.
1852.235–70 Center for AeroSpace Information—final scientific and technical reports.
1852.235–71 Key personnel and facilities.
1852.235–72 Instructions for responding to
NASA Research Announcements.
1852.236–71 Additive or deductive items.
1852.236–72 Bids with unit prices.
1852.236–73 Hurricane plan.
1852.236–74 Magnitude of requirement.
1852.236–75 Partnering for construction contracts.
1852.237–70 Emergency evacuation procedures.
1852.237–71 Pension portability.
1852.239–70 Alternate delivery points.
1852.241–70 Renewal of contract.
1852.242–70 Technical direction.
1852.242–71 Travel outside of the United
States.
1852.242–72 Observance of legal holidays.
1852.242–73 NASA contractor financial management reporting.
1852.242–74 Notice of Earned Value Management System.
1852.242–75 Earned Value Management Systems.
1852.242–76 Modified Cost Performance Report.
1852.242–77 Modified Cost Performance Report plans.
1852.242–78 Emergency medical services and
evacuation.
1852.243–70 Engineering change proposals.
1852.243–71 Shared savings.
1852.243–72 Equitable adjustments.
1852.244–70 Geographic participation in the
aerospace program.
1852.245–70 Contractor requests for government-owned equipment.
1852.245–71 Installation-accountable government property.

1852.000

1852.245–72 Liability for Government property furnished for repair or other services.
1852.245–73 Financial reporting of NASA
property in the custody of contractors.
1852.245–74 Contractor accountable on-site
Government property.
1852.245–75 Title to equipment.
1852.245–76 List of Government-furnished
property.
1852.245–77 List of installation-accountable
property and services.
1852.245–79 Use of Government-owned property.
1852.245–80 Use of Government production
and research property on a no-charge
basis.
1852.246–70 Mission Critical Space System
Personnel Reliability Program.
1852.246–71 Government contract quality assurance functions.
1852.246–72 Material Inspection and Receiving Report.
1852.246–73 Human space flight item.
1852.247–71 Protection of the Florida manatee.
1852.247–72 Advance notice of shipment.
1852.247–73 Bills of Lading.
1852.249–72 Termination (utilities).

Subpart 1852.3—Provision and Clause
Matrix
1852.300 Scope of subpart.
1852.301 Solicitation provisions
tract clauses (Matrix).

and

AUTHORITY: 42 U.S.C. 2473 (c)(1).
SOURCE: 54 FR 28340, July 5, 1989, unless
otherwise noted.

1852.000

Scope of part.

This part, in conjunction with FAR
Part 52—
(a) Sets forth the provisions and
clauses prescribed in the NFS,
(b) Gives instructions for their use,
and
(c) Presents a matrix listing the provisions and clauses applicable to each
principal contract type and/or purpose
(e.g., fixed-price supply, cost-reimbursement research and development).
[61 FR 40547, Aug. 5, 1996]

Subpart 1852.1—Instructions for
Using Provisions and Clauses
SOURCE: 61 FR 40547, Aug. 5, 1996, unless
otherwise noted.

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1852.101

48 CFR Ch. 18 (10–1–02 Edition)

1852.101 Using FAR part 52. (NASA
supplements paragraphs (b) and
(e))
(b)(2)(i)(B) NASA contracting offices
prescribing or developing clauses shall
ensure that the requirements of subpart 1801.3 are met.
(e)(1) The NFS matrix in subpart
1852.3 is formatted similarly to that in
the FAR. The first page of the NFS matrix contains a key to column headings, a dollar threshold chart, and requirement symbols. To fully determine
the applicability of a provision or
clause in the ‘‘required-when-applicable’’ and ‘‘optional’’ categories, Contracting Officers shall refer to the NFS
text (cited in the matrix) that prescribes its use.
(4) The NFS matrix may be reproduced by field installations for the purpose of supplementing it with installation-developed provisions and clauses.
1852.103 Identification of provisions
and clauses. (NASA supplements
paragraphs (b) and (c))
(b) Provisions and clauses prescribed
by a field installation to satisfy its
needs shall be identified as stated in
paragraphs (b) (i) and (ii) of this section. Articles, formats, and similar language shall be treated as provisions
and clauses for purposes of this section
1852.103.
(i) A provision or clause shall be
numbered using a prefix, a base, and a
suffix. The prefix shall be an alphabetical abbreviation of the installation
name (e.g., ARC, DFRC, GRC, GSFC,
JSC, KSC, LARC, MSFC, SSC, or
SSPO). The base shall be a numeric
value beginning with ‘‘52.2,’’ with the
next two digits corresponding to the
number of the FAR or NFS subject
part to which the provision or clause
relates. The suffix shall be a hyphen
and sequential number assigned within
each part. NASA installations shall use
suffix numbers from ¥90 to ¥199. For
example, the first Johnson Space Center (JSC) provision or clause relating
to part 36 of the FAR or NFS shall be
JSC 52.236–90, the second JSC 52.236–91,
and so forth. Provisions and clauses
shall be dated in accordance with FAR
52.101(f).

(ii) Contracting officers shall identify
provisions and clauses as in the following examples:
(A) I.2 BID ENVELOPES (GSFC
52.214–90) (AUGUST 1987) This example
is applicable when identifying the title
of provisions and clauses in solicitations and contracts using the uniform
contract format (UCF). The first number (‘‘I.2’’) designates the UCF section
and the sequential clause within that
section ‘‘GSFC 52.214–90’’ specifies the
clause number.
(B) GSFC 52.214–90—Bid Envelopes
(AUGUST 1987) This example is applicable in all instances in which the provision or clause citation is not associated with the UCF number.
(C) Contracting officers shall not
number provisions and clauses developed for individual acquisitions only.
For example, ‘‘F.3 Delivery Procedures
for Special Hardware’’ cites the third
clause in Section F of a contract using
the UCF, but has no clause number or
date identified with it, indicating that
the clause was developed for the particular contract it appears in.
[61 FR 40547, Aug. 5, 1996, as amended at 64
FR 19926, Apr. 23, 1999]

1852.103–70 Identification of modified
provisions and clauses.
When a FAR clause or provision is included in a solicitation or contract and
the NFS prescribes a modification, the
title line shall identify the modification as shown in this subsection. This
format shall be used both for incorporation by reference and when using full
text.
‘‘52.232–28 Electronic Funds Transfer Payment Methods (APR 1989)—as modified by
NASA FAR Supplement 1832.908(a)’’

1852.104 Procedures
and completing
clauses.

for modifying
provisions and

NFS provisions and clauses shall not
be modified unless authorized by the
NFS. When authorized, contracting officers must comply with the procedures
in FAR 52.104.

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National Aeronautics and Space Administration

Subpart 1852.2—Texts of Provisions
and Clauses
1852.203–70 Display of Inspector General Hotline Posters.
As prescribed in 1803.7001, insert the
following clause:
DISPLAY OF INSPECTOR GENERAL HOTLINE
POSTERS (JUN 2001)
(a) The Contractor shall display prominently in common work areas within business segments performing work under this
contract, Inspector General Hotline Posters
available under paragraph (b) of this clause.
(b) Inspector General Hotline Posters may
be obtained from NASA Office of Inspector
General, Code W, Washington, DC, 20546–0001,
(202) 358–1220.
[66 FR 29727, June 1, 2001]

1852.204–74 Central
istration.

Contractor

Reg-

As prescribed in 1804.7404, insert the
following clause:
CENTRAL CONTRACTOR REGISTRATION (MAY
2002)
(a) Definitions. As used in this clause—
(1) ‘‘Central Contractor Registration (CCR)
database’’ means the primary DoD repository for contractor information required for
the conduct of business with NASA.
(2) ‘‘Data Universal Number System
(DUNS) number’’ means the 9-digit number
assigned by Dun and Bradstreet Information
Services to identify unique business entities.
(3) ‘‘Data Universal Numbering System +4
(DUNS+4) number’’ means the DUNS number
assigned by Dun and Bradstreet plus a 4-digit
suffix that may be assigned by a parent
(controlling) business concern. This 4-digit
suffix may be assigned at the discretion of
the parent business concern for such purposes as identifying sub-units or affiliates of
the parent business concern.
(4) ‘‘Commercial and Government Entity
Code (CAGE Code)’’ means—
(i) A code assigned by the Defense Logistics Information Service (DLIS) to identify a
commercial or Government entity; or
(ii) A code assigned by a member of the
North Atlantic Treaty Organization (NATO)
that is recorded and maintained by DLIS in
the CAGE master file.
(5) ‘‘Registered in the CCR database’’
means that all mandatory information, including the DUNS number or the DUNS+4
number, if applicable, and the corresponding
CAGE code, is in the CCR database; the
DUNS number and the CAGE code have been
validated; and all edits have been successfully completed.

1852.204–75

(b)(1) By submission of an offer, the offeror
acknowledges the requirement that a prospective awardee must be registered in the
CCR database prior to award, during performance, and through final payment of any
contract resulting from this solicitation, except for awards to foreign vendors performing work outside of the United States.
(2) The Contracting Officer will verify that
the offeror is registered in the CCR database.
(3) Lack of registration in the CCR database will make an offeror ineligible for
award after March 31, 2001.
(4) DoD has established a goal of registering an applicant in the CCR database
within 48 hours after receipt of a complete
and accurate application via the Internet.
However, registration of an applicant submitting an application through a method
other than the Internet may take up to 30
days. Therefore, offerors that are not registered should consider applying for registration immediately upon receipt of this solicitation.
(c) The Contractor is responsible for the
accuracy and completeness of the data within the CCR, and for any liability resulting
from the Government’s reliance on inaccurate or incomplete data. To remain registered in the CCR database after the initial
registration, the Contractor is required to
confirm on an annual basis that its information in the CCR database is accurate and
complete.
(d) Offerors and contractors may obtain information on registration and annual confirmation requirements via the Internet at
http://www.ccr.gov or by calling 888-CCR–2423
(888–227–2423).

(End of clause)
[65 FR 50153, Aug. 17, 2000, as amended at 66
FR 53548, Oct. 23, 2001; 67 FR 30604, May 7,
2002]

1852.204–75 Security classification requirements.
As prescribed in 1804.404–70, insert the
following clause:
SECURITY CLASSIFICATION REQUIREMENTS
(SEP 1989)
Performance under this contract will involve access to and/or generation of classified information, work in a security area, or
both,
up
to
the
level
of
llllllllllll [insert the applicable
security clearance level]. See Federal Acquisition Regulation clause 52.204–2 in this contract and DD Form 254, Contract Security
Classification Specification, Attachment
llll [Insert the attachment number of
the DD Form 254].

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1852.204–76

48 CFR Ch. 18 (10–1–02 Edition)
(End of clause)

[61 FR 40548, Aug. 5, 1996]

1852.204–76 Security Requirements for
Unclassified
Information
Technology Resources.
As prescribed in 1804.470–4, insert a
clause substantially as follows:
SECURITY REQUIREMENTS FOR UNCLASSIFIED
TECHNOLOGY
RESOURCES,
INFORMATION
(JUL 2002)
(a) The Contractor shall be responsible for
Information Technology security for all systems connected to a NASA network or operated by the Contractor for NASA, regardless
of location. This clause is applicable to all or
any part of the contract that includes information technology resources or services in
which the Contractor must have physical or
electronic access to NASA’s sensitive information contained in unclassified systems
that directly support the mission of the
Agency. This includes information technology, hardware, software, and the management, operation, maintenance, programming, and system administration of computer systems, networks, and telecommunications systems. Examples of tasks that require security provisions include:
(1) Computer control of spacecraft, satellites, or aircraft or their payloads;
(2) Acquisition, transmission or analysis of
data owned by NASA with significant replacement cost should the contractor’s copy
be corrupted; and
(3) Access to NASA networks or computers
at a level beyond that granted the general
public, e.g. bypassing a firewall.
(b) The Contractor shall provide, implement, and maintain an IT Security Plan.
This plan shall describe the processes and
procedures that will be followed to ensure
appropriate security of IT resources that are
developed, processed, or used under this contract. The plan shall describe those parts of
the contract to which this clause applies.
The Contractor’s IT Security Plan shall be
compliant with Federal laws that include,
but are not limited to, the Computer Security Act of 1987 (40 U.S.C. 1441 et seq.) and the
Government Information Security Reform
Act of 2000. The plan shall meet IT security
requirements in accordance with Federal and
NASA policies and procedures that include,
but are not limited to:
(1) OMB Circular A–130, Management of
Federal Information Resources, Appendix III,
Security of Federal Automated Information
Resources;
(2) NASA Procedures and Guidelines (NPG)
2810.1, Security of Information Technology;
and
(3) Chapter 3 of NPG 1620.1, NASA Security
Procedures and Guidelines.

(c) Within lldays after contract award,
the contractor shall submit for NASA approval an IT Security Plan. This plan must
be consistent with and further detail the approach contained in the offeror’s proposal or
sealed bid that resulted in the award of this
contract and in compliance with the requirements stated in this clause. The plan, as approved by the Contracting Officer, shall be
incorporated into the contract as a compliance document.
(d)(1) Contractor personnel requiring privileged access or limited privileged access to
systems operated by the Contractor for
NASA or interconnected to a NASA network
shall be screened at an appropriate level in
accordance with NPG 2810.1, Section 4.5; NPG
1620.1, Chapter 3; and paragraph (d)(2) of this
clause. Those Contractor personnel with
non-privileged access do not require personnel screening. NASA shall provide screening using standard personnel screening National Agency Check (NAC) forms listed in
paragraph (d)(3) of this clause, unless contractor screening in accordance with paragraph (d)(4) is approved. The Contractor
shall submit the required forms to the NASA
Center Chief of Security (CCS) within fourteen (14) days after contract award or assignment of an individual to a position requiring
screening. The forms may be obtained from
the CCS. At the option of the government,
interim access may be granted pending completion of the NAC.
(2) Guidance for selecting the appropriate
level of screening is based on the risk of adverse impact to NASA missions. NASA defines three levels of risk for which screening
is required (IT–1 has the highest level of
risk):
(i) IT–1—Individuals having privileged access or limited privileged access to systems
whose misuse can cause very serious adverse
impact to NASA missions. These systems include, for example, those that can transmit
commands directly modifying the behavior
of spacecraft, satellites or aircraft.
(ii) IT–2—Individuals having privileged access or limited privileged access to systems
whose misuse can cause serious adverse impact to NASA missions. These systems include, for example, those that can transmit
commands directly modifying the behavior
of payloads on spacecraft, satellites or aircraft; and those that contain the primary
copy of ‘‘level 1’’ data whose cost to replace
exceeds one million dollars.
(iii) IT–3—Individuals having privileged access or limited privileged access to systems
whose misuse can cause significant adverse
impact to NASA missions. These systems include, for example, those that interconnect
with a NASA network in a way that exceeds
access by the general public, such as bypassing firewalls; and systems operated by the
contractor for NASA whose function or data
has substantial cost to replace, even if these

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National Aeronautics and Space Administration
systems are not interconnected with a NASA
network.
(3) Screening for individuals shall employ
forms appropriate for the level of risk as follows:
(i) IT–1: Fingerprint Card (FC) 258 and
Standard Form (SF) 85P, Questionnaire for
Public Trust Positions;
(ii) IT–2: FC 258 and SF 85, Questionnaire
for Non-Sensitive Positions; and
(iii) IT–3: NASA Form 531, Name Check,
and FC 258.
(4) The Contracting Officer may allow the
Contractor to conduct its own screening of
individuals requiring privileged access or
limited privileged access provided the Contractor can demonstrate that the procedures
used by the Contractor are equivalent to
NASA’s personnel screening procedures. As
used here, equivalent includes a check for
criminal history, as would be conducted by
NASA, and completion of a questionnaire
covering the same information as would be
required by NASA.
(5) Screening of contractor personnel may
be waived by the Contracting Officer for
those individuals who have proof of—
(1) Current or recent national security
clearances (within last three years);
(ii) Screening conducted by NASA within
last three years; or
(iii) Screening conducted by the Contractor, within last three years, that is
equivalent to the NASA personnel screening
procedures as approved by the Contracting
Officer under paragraph (d)(4) of this clause.
(e) The Contractor shall ensure that its
employees, in performance of the contract,
receive annual IT security training in NASA
IT Security policies, procedures, computer
ethics, and best practices in accordance with
NPG 2810.1, Section 4.3 requirements. The
contractor may use web-based training available from NASA to meet this requirement.
(f) The Contractor shall afford NASA, including the Office of Inspector General, access to the Contractor’s and subcontractors’
facilities, installations, operations, documentation, databases and personnel used in
performance of the contract. Access shall be
provided to the extent required to carry out
a program of IT inspection, investigation
and audit to safeguard against threats and
hazards to the integrity, availability and
confidentiality of NASA data or to the function of computer systems operated on behalf
of NASA, and to preserve evidence of computer crime.
(g) The Contractor shall incorporate the
substance of this clause in all subcontracts
that meet the conditions in paragraph (a) of
this clause.

(End of clause)
[66 FR 36491, July 12, 2001, as amended at 67
FR 48815, July 26, 2002]

1852.208–81

1852.208–81 Restrictions on Printing
and Duplicating.
As prescribed in 1808.870, insert the
following clause:
RESTRICTIONS ON PRINTING AND DUPLICATING
OCTOBER 2001
(a) The Contractor may duplicate or copy
any documentation required by this contract
in accordance with the provisions of the Government Printing and Binding Regulations,
No. 26, S. Pub 101–9, U.S. Government Printing Office, Washington, DC, 20402, published
by the Joint Committee on Printing, U.S.
Congress.
(b) The Contractor shall not perform, or
procure from any commercial source, any
printing in connection with the performance
of work under this contract. The term
‘‘printing’’ includes the processes of composition, platemaking, presswork, duplicating, silk screen processes, binding,
microform, and the end items of such processes and equipment.
(c) The Contractor is authorized to duplicate or copy production units provided the
requirement does not exceed 5,000 production
units of any one page or 25,000 units in the
aggregate of multiple pages. Such pages may
not exceed a maximum image size of 10–3⁄4 by
14–1⁄4 inches. A ‘‘production unit’’ is one
sheet, size 8–1⁄2×11 inches (215×280 mm), one
side only, and one color ink.
(d) This clause does not preclude writing,
editing, preparation of manuscript copy, or
preparation of related illustrative material
as a part of this contract, or administrative
duplicating/copying (for example, necessary
forms and instructional materials used by
the Contractor to respond to the terms of the
contract).
(e) Costs associated with printing, duplicating, or copying in excess of the limits in
paragraph (c) of this clause are unallowable
without prior written approval of the Contracting Officer. If the Contractor has reason
to believe that any activity required in fulfillment of the contract will necessitate any
printing or substantial duplicating or copying, it immediately shall provide written notice to the Contracting Officer and request
approval prior to proceeding with the activity. Requests will be processed by the Contracting Officer in accordance with the provisions of the Government Printing and
Binding Regulations, NFS 1808.802, and NPG
1490.5, NASA Procedures and Guidelines for
Printing, Duplicating, and Copying Management.
(f) The Contractor shall include in each
subcontract which may involve a requirement for any printing, duplicating, and copying in excess of the limits specified in paragraph (c) of this clause, a provision substantially the same as this clause, including this
paragraph (f).

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1852.209–70

48 CFR Ch. 18 (10–1–02 Edition)
(End of clause)

[66 FR 53548, Oct. 23, 2001]

1852.209–70 Product
removal
from
Qualified Products List.
As prescribed in 1809.206–71, insert the
following clause:

companies, and as long as these data remain
proprietary or confidential, the Contractor
shall protect these data from unauthorized
use and disclosure and agrees not to use
them to complete with those other companies.

(End of clause)
[61 FR 40549, Aug. 5, 1996]

PRODUCT REMOVAL FROM QUALIFIED
PRODUCTS LIST (DEC 1988)
If, during the performance of this contract,
the product being furnished is removed from
the Qualified Products List for any reason,
the Government may terminate the contract
for Default pursuant to the default clause of
the contract.

1852.209–72 Composition of the contractor.
As prescribed in 1809.670, insert the
following clause:
COMPOSITION OF THE CONTRACTOR (DEC 1988)
If the Contractor is comprised of more
than one legal entity, each entity shall be
jointly and severally liable under this contract.

(End of clause)
[61 FR 40549, Aug. 5, 1996]

1852.209–71 Limitation of future contracting.
As prescribed in 1809.507–2, the contracting officer may insert a clause
substantially as follows in solicitations
and contracts, in compliance with FAR
9.507–2:

(End of clause)
[61 FR 40549, Aug. 5, 1996]

1852.210–70

Brand name or equal.

As prescribed in 1810.011–70(a), insert
the following provision:
BRAND NAME OR EQUAL (DEC 1988)

LIMITATION OF FUTURE CONTRACTING (DEC
1988)
(a) The Contracting Officer has determined
that this acquisition may give rise to a potential organizational conflict of interest.
Accordingly, the attention of prospective
offerors is invited to FAR Subpart 9.5—Organizational Conflicts of Interest.
(b) The nature of this conflict is [describe
the conflict].
(c) The restrictions upon future contracting are as follows:
(1) If the Contractor, under the terms of
this contract, or through the performance of
tasks pursuant to this contract, is required
to develop specifications or statements or
work that are to be incorporated into a solicitation, the Contractor shall be ineligible to
perform the work described in that solicitation as a prime of first-tier subcontractor
under an ensuing NASA contract. This restriction shall remain in effect for a reasonable time, as agreed to by the Contracting
Officer and the Contractor, sufficient to
avoid unfair competitive advantage or potential bias (this time shall in no case be less
than the duration of the initial production
contract). NASA shall not unilaterally require the Contractor to prepare such specifications or statements of work under this
contract.
(2) To the extent that the work under this
contract requires access to proprietary, business confidential, or financial data of other

(a) As used in this provision, ‘‘brand name’’
means identification of products by make
and model. The term ‘‘bid’’ means ‘‘offer’’ if
this is a negotiated acquisition.
(b) If items called for by this solicitation
are identified in the Schedule by a ‘‘brand
name or equal’’ description, that identification is intended to be descriptive, not restrictive, and is to indicate the quality and
characteristics of products that will be satisfactory. Bids offering ‘‘equal’’ products, including products of the brand name manufacturer other than the one described by brand
name, will be considered for award if the
products are clearly identified in the bids
and are determined by the Government to
meet fully the salient characteristics requirements referenced in the solicitation.
(c) Unless the offeror clearly indicates in
the bid that it is offering an ‘‘equal’’ product, the bid shall be considered as offering a
brand-name product referenced in the solicitation.
(d)(1) If the offeror proposes to furnish an
‘‘equal’’ product, the brand name, if any, of
the product to be furnished shall be inserted
in the space provided in the solicitation, or
that product shall be otherwise clearly identified in the bid. The evaluation of bids and
the determination as to equality of the product offered shall be the responsibility of the
Government and will be based on information furnished by the offeror or identified in

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National Aeronautics and Space Administration

1852.213–70

its bid, as well as on other information reasonably available to the contracting activity.
(2) Caution to Offerors: The contracting office is not responsible for locating or securing any information not identified in the bid
and reasonably available to the contracting
office. Accordingly, to ensure that sufficient
information is available, the offeror must
furnish as a part of its bid all descriptive material (such as cuts, illustrations, drawings,
or other information) necessary for the contracting office to (i) determine whether the
product offered meets the salient characteristics requirements of the solicitation and
(ii) establish exactly what the offeror proposes to furnish and what the Government
would be binding itself to purchase by making an award. The information furnished
may include specific references to information previously furnished or to information
otherwise available to the contracting office.
(3) If the offeror proposes to modify a product so as to make it conform to the requirements of the solicitation, it shall (i) include
in the bid a clear description of the proposed
modifications and (ii) clearly mark any descriptive material to show them.
(4) If this is a sealed-bid acquisition, modifications proposed after bid opening to make
a product conform to a brand name product
referenced in the solicitation will not be considered.

If, because of technical difficulties, the
Contractor becomes unable to complete the
contract work at the time specified, notwithstanding the exercise of good faith and diligent efforts in performing the work called
for under this contract, the Contractor shall
give the Contracting Officer written notice
of the anticipated delay and the reasons for
it. The notice and reasons shall be delivered
promptly after the condition creating the
anticipated delay becomes known to the
Contractor but in no event less than 45 days
before the completion date specified in this
contract, unless otherwise permitted by the
Contracting Officer. When notice is given,
the Contracting Officer may extend the time
specified in the Schedule for such period as
is deemed advisable.

(End of provision)

(End of clause)

[54 FR 28340, July 5, 1989, as amended at 56
FR 12460, Mar. 26, 1991]

1852.211–70 Packaging, handling, and
transportation.

(c) The Contractor must place the requirements of this clause in all subcontracts for
items that will become components of deliverable Class I, II, or III items.

(End of clause)
[65 FR 37062, June 13, 2000]

1852.212–70

Notice of delay.

As prescribed at 1812.104–70(a), insert
the following clause:
NOTICE OF DELAY (DEC 1988)

1852.212–74

Period of performance.

As prescribed in 1812.104–70(e), insert
the following clause:
PERIOD OF PERFORMANCE (DEC 1988)

As prescribed in 1811.404–70, insert the
following clause:

The period of performance of this contract
shall be [Insert period of performance dates].

PACKAGING, HANDLING, AND TRANSPORTATION
(JUN 2000)

(End of clause)

(a) The Contractor shall shall comply with
NPG 6000.1E, ‘‘Requirements for Packaging,
Handling, and Transportation for Aeronautical and Space Systems, Equipment, and
Associated Components’’, dated April 26,
1999, as may be supplemented by the statement of work or specifications of this contract, for all items designated as Class I, II,
or III.
(b) The Contractor’s packaging, handling,
and transportation procedures may be used,
in whole or in part, subject to the written
approval of the Contracting Officer, provided
(1) the Contractor’s procedures are not in
conflict with any requirements of this contract, and (2) the requirements of this contract shall take precedence in the event of
any conflict with the Contractor’s procedures.

1852.213–70 Offeror
Representations
and
Certifications—Other
Than
Commercial Items.
As prescribed in 1813.302–570, insert
the following provision:
OFFEROR

REPRESENTATIONS AND CERTIFICATIONS—OTHER THAN COMMERCIAL ITEMS—
(JUL 2002)

(a) Definitions. As used in this provision—
‘‘Emerging small business’’ means a small
business concern whose size is no greater
than 50 percent of the numerical size standard for the NAICS code designated.
‘‘Forced or indentured child labor’’ means
all work or service—
(1) Exacted from any person under the age
of 18 under the menace of any penalty for its

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1852.213–70

48 CFR Ch. 18 (10–1–02 Edition)

nonperformance and for which the worker
does not offer himself voluntarily; or
(2) Performed by any person under the age
of 18 pursuant to a contract the enforcement
of which can be accomplished by process or
penalties.
Service-disabled veteran means a veteran,
as defined in 38 U.S.C. 101(2), with a disability that is service-connected, as defined
in 38 U.S.C. 101(16).
‘‘Service-disabled
veteran-owned
small
business concern’’—Means a small business
concern—
(1) Not less than 51 percent of which is
owned by one or more service-disabled veterans or, in the case of any publicly owned
business, not less than 51 percent of the
stock of which is owned by one or more service-disabled veterans; and
(2) The management and daily business operations of which are controlled by one or
more service-disabled veterans or, in the
case of a veteran with permanent and severe
disability, the spouse or permanent caregiver of such veteran.
‘‘Small business concern’’ means a concern, including its affiliates, that is independently owned and operated, not dominant
in the field of operation in which it is bidding on Government contracts, and qualified
as a small business under the criteria in 13
CFR part 121 and size standards in this solicitation.
‘‘Veteran-owned small business concern’’
means a small business concern—
(1) Not less than 51 percent of which is
owned by one or more veterans (as defined at
38 U.S.C. 101(2)) or, in the case of any publicly owned business, not less than 51 percent
of the stock of which is owned by one or
more veterans; and
(2) The management and daily business operations of which are controlled by one or
more veterans.
‘‘Women-owned small business concern’’
means a small business concern—
(1) That is at least 51 percent owned by one
or more women; or, in the case of any publicly owned business, at least 51 percent of
the stock of which is owned by one or more
women; and
(2) Whose management and daily business
operations are controlled by one or more
women.
(b) Taxpayer Identification Number (TIN)
(26 U.S.C. 6109, 31 U.S.C. 7701).
(1) All offerors must submit the information required in paragraphs (b)(3) through
(b)(5) of this provision to comply with debt
collection requirements of 31 U.S.C. 7701(c)
and 3325(d), reporting requirements of 26
U.S.C. 6041, 6041A, and 6050M, and implementing regulations issued by the Internal
Revenue Service (IRS).
(2) The TIN may be used by the Government to collect and report on any delinquent
amounts arising out of the offeror’s relation-

ships with the Government (31 U.S.C.
7701(c)(3)). If the resulting contract is subject
to the payment reporting requirements described in FAR 4.904, the TIN provided hereunder may be matched with IRS records to
verify the accuracy of the offeror’s TIN.
(3) Taxpayer Identification Number (TIN).
[ ] TIN:lllll.
[ ] TIN has been applied for.
[ ] TIN is not required because:
[ ] Offeror is a nonresident alien, foreign
corporation, or foreign partnership that
does not have income effectively connected with the conduct of a trade or
business in the United States and does
not have an office or place of business or
a fiscal paying agent in the United
States;
[ ] Offeror is an agency or instrumentality of a foreign government;
[ ] Offeror is an agency or instrumentality of the Federal Government.
(4) Type of organization.
[ ] Sole proprietorship;
[ ] Partnership;
[ ] Corporate entity (not tax-exempt);
[ ] Corporate entity (tax-exempt);
[ ] Government entity (Federal, State, or
local);
[ ] Foreign government;
[ ] International organization per 26 CFR
1.6049–4;
[ ] Other lllll.
(5) Common parent.
[ ] Offeror is not owned or controlled by a
common parent;
[ ] Name and TIN of common parent:
Name lllll.
TINlllll.
(c) Offerors must complete the following
representations when the resulting contract
is to be performed inside the United States,
its territories or possessions, Puerto Rico,
the Trust Territory of the Pacific Islands, or
the District of Columbia. Check all that
apply.
(1) Small business concern. The offeror represents as part of its offer that it [ ] is, [ ]
is not a small business concern.
(2) Veteran-owned small business concern.
[Complete only if the offeror represented
itself as a small business concern in paragraph (c)(1) of this provision.] The offeror
represents as part of its offer that it [ ] is,
[ ] is not a veteran-owned small business
concern.
(3) Service-disabled veteran-owned small
business concern. [Complete only if the offeror represented itself as a veteran-owned
small business concern in paragraph (c)(2) of
this provision.] The offeror represents as
part of its offer that it [ ] is, [ ] is not a
service-disabled veteran-owned small business concern.
(4) Small disadvantaged business concern.
[Complete only if the offeror represented

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National Aeronautics and Space Administration
itself as a small business concern in paragraph (c)(1) of this provision.] The offeror
represents, for general statistical purposes,
that it [ ] is, [ ] is not a small disadvantaged business concern as defined in 13 CFR
124.1002.
(5) Women-owned small business concern.
[Complete only if the offeror represented
itself as a small business concern in paragraph (c)(1) of this provision.] The offeror
represents that it [ ] is, [ ] is not a womenowned small business concern.
(6) Small Business Size for the Small Business Competitiveness
Demonstration Program and for the Targeted Industry Categories under the Small
Business Competitiveness Demonstration
Program. [Complete only if the offeror has
represented itself to be a small business concern under the size standards for this solicitation.]
(i) [Complete only for solicitations indicated as being set-aside for emerging small
businesses in one of the four designated industry groups (DIGs).] The offeror represents
as part of its offer that it [ ] is, [ ] is not
an emerging small business.
(ii) [Complete only for solicitations indicated as being for one of the targeted industry categories (TICs) or four designated industry groups (DIGs).] Offeror represents as
follows:
(A) Offeror’s number of employees for the
past 12 months (check the Employees column
if size standard stated in the solicitation is
expressed in terms of number of employees);
or
(B) Offeror’s average annual gross revenue
for the last 3 fiscal years (check the Average
Annual Gross Number of Revenues column if
size standard stated in the solicitation is expressed in terms of annual receipts).
(Check one of the following):
Number of
employees
l50 or fewer
l51–100
l101–250
l251–500
l501–750
l751–1000
lOver 1000

Average annual
gross revenues
l$1 million or less.
l$1,000,001–$2 million.
l$2,000,001–$3.5 million.
l$3,500,001–$5 million.
l$5,000,001–$10 million.
l$10,000,001–$17 million.
lOver $17 million.

(7) HUBZone small business concern.
[Complete only if the offeror represented
itself as a small business concern in paragraph (c)(1) of this provision.] The offeror
represents as part of its offer that—
(i) It [ ] is, [ ] is not a HUBZone small
business concern listed, on the date of this
representation, on the List of Qualified
HUBZone Small Business Concerns maintained by the Small Business Administration, and no material change in ownership
and control, principal office, or HUBZone
employee percentage has occurred since it
was certified by the Small Business Adminis-

1852.213–70

tration in accordance with 13 CFR part 126;
and
(ii) It [ ] is, [ ] is not a joint venture that
complies with the requirements of 13 CFR
part 126, and the representation in paragraph
(c)(11)(i) of this provision is accurate for the
HUBZone small business concern or concerns
that are participating in the joint venture.
[The offeror shall enter the name or names
of the HUBZone small business concern or
concerns that are participating in the joint
venture: lllll.] Each HUBZone small
business concern participating in the joint
venture shall submit a separate signed copy
of the HUBZone representation.
(8) (Complete if dollar value of the resultant contract is expected to exceed $25,000 and
the offeror has represented itself as disadvantaged in paragraph (c)(4) of this provision.) [The offeror shall check the category
in which its ownership falls]:
l Black American.
l Hispanic American.
l Native American (American Indians, Eskimos, Aleuts, or Native Hawaiians).
l Asian-Pacific American (persons with origins from Burma, Thailand, Malaysia, Indonesia, Singapore, Brunei, Japan, China,
Taiwan, Laos, Cambodia (Kampuchea),
Vietnam, Korea, The Philippines, U.S.
Trust Territory of the Pacific Islands
(Republic of Palau), Republic of the Marshall Islands, Federated States of Micronesia, the Commonwealth of the Northern
Mariana Islands, Guam, Samoa, Macao,
Hong Kong, Fiji, Tonga, Kiribati, Tuvalu,
or Nauru).
l Subcontinent Asian (Asian-Indian) American (persons with origins from India,
Pakistan, Bangladesh, Sri Lanka, Bhutan,
the Maldives Islands, or Nepal).
l Individual/concern, other than one of the
preceding.
(d) Representations required to implement
provisions of Executive Order 11246—
(1) Previous contracts and compliance. The
offeror represents that—
(i) It [ ] has, [ ] has not participated in a
previous contract or subcontract subject to
the Equal Opportunity clause of this solicitation; and
(ii) It [ ] has, [ ] has not filed all required
compliance reports.
(2) Affirmative Action Compliance. The offeror represents that—
(i) It [ ] has developed and has on file, [ ]
has not developed and does not have on file,
at each establishment, affirmative action
programs required by rules and regulations
of the Secretary of Labor (41 CFR parts 60–1
and 60–2), or
(ii) It [ ] has not previously had contracts
subject to the written affirmative action
programs requirement of the rules and regulations of the Secretary of Labor.

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1852.213–70

48 CFR Ch. 18 (10–1–02 Edition)

(e) Buy American Act Certificate. (Applies
only if the clause at Federal Acquisition
Regulation (FAR) 52.225–1, Buy American
Act—
Supplies, is included in this solicitation.)
(1) The offeror certifies that each end product, except those listed in paragraph (e)(2) of
this provision, is a domestic end product as
defined in the clause of this solicitation entitled ‘‘Buy American Act—Supplies’’ and that
the offeror has considered components of unknown origin to have been mined, produced,
or manufactured outside the United States.
The offeror shall list as foreign end products
those end products manufactured in the
United States that do not qualify as domestic end products.
(2) Foreign End Products:
Line Item No. and Country of Origin
llllllllllllllllllllllll
llllllllllllllllllllllll
llllllllllllllllllllllll
[List as necessary]
(3) The Government will evaluate offers in
accordance with the policies and procedures
of FAR part 25.
(f)(1) Buy American Act—North American
Free Trade Agreement— Israeli Trade Act
Certificate. (Applies only if the clause at
FAR 52.225–3, Buy American Act— North
American Free Trade Agreement—Israeli
Trade Act, is included in this solicitation.)
(i) The offeror certifies that each end product, except those listed in paragraph (f)(1)(ii)
or (f)(1)(iii) of this provision, is a domestic
end product as defined in the clause of this
solicitation entitled ‘‘Buy American Act—
North American Free Trade Agreement—
Israeli Trade Act’’ and that the offeror has
considered components of unknown origin to
have been mined, produced, or manufactured
outside the United States.
(ii) The offeror certifies that the following
supplies are NAFTA country end products or
Israeli end products as defined in the clause
of this solicitation entitled ‘‘Buy American
Act—North American Free Trade Agreement—Israeli Trade Act: NAFTA Country or
Israeli End Products:
Line Item No. and Country of Origin
llllllllllllllllllllllll
llllllllllllllllllllllll
llllllllllllllllllllllll
[List as necessary]
(iii) The offeror shall list those supplies
that are foreign end products (other than
those listed in paragraph (f)(1)(ii) of this provision) as defined in the clause of this solicitation entitled ‘‘Buy American Act—North
American Free Trade Agreement— Israeli
Trade Act.’’ The offeror shall list as other
foreign end products those end products

manufactured in the United States that do
not qualify as domestic end products.
Other Foreign End Products:
Line Item No. and Country of Origin
llllllllllllllllllllllll
llllllllllllllllllllllll
llllllllllllllllllllllll
[List as necessary]
(iv) The Government will evaluate offers in
accordance with the policies and procedures
of FAR part 25.
(2) Buy American Act—North American
Free Trade Agreements—Israeli Trade Act
Certificate, Alternate I. If Alternate I to the
clause at FAR 52.225–3 is included in this solicitation, substitute the following paragraph (f)(1)(ii) for paragraph (f)(1)(ii) of the
basic provision:
(f)(1)(ii) The offeror certifies that the following supplies are Canadian end products as
defined in the clause of this solicitation entitled ‘‘Buy American Act—North American
Free Trade Agreement—Israeli Trade Act’’:
Canadian End Products:
Line Item No.
llllllllllllllllllllllll
llllllllllllllllllllllll
llllllllllllllllllllllll
(List as necessary)
(3) Buy American Act—North American
Free Trade Agreements—Israeli Trade Act
Certificate, Alternate II. If Alternate II to
the clause at FAR 52.225–3 is included in this
solicitation, substitute the following paragraph (f)(1)(ii) for paragraph (f)(1)(ii) of the
basic provision:
(f)(1)(ii) The offeror certifies that the following supplies are Canadian end products or
Israeli end products as defined in the clause
of this solicitation entitled ‘‘Buy American
Act—North American Free Trade Agreement—Israeli Trade Act’’:
Canadian or Israeli End Products:
Line Item No. and Country of Origin
llllllllllllllllllllllll
llllllllllllllllllllllll
llllllllllllllllllllllll
[List as necessary]
(4) Trade Agreements Certificate. (Applies
only if the clause at FAR 52.225–5, Trade
Agreements, is included in this solicitation.)
(i) The offeror certifies that each end product, except those listed in paragraph (f)(4)(ii)
of this provision, is a U.S.-made, designated
country, Caribbean Basin country, or
NAFTA country end product, as defined in
the clause of this solicitation entitled
‘‘Trade Agreements.’’
(ii) The offeror shall list as other end products those end products that are not U.S.-

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National Aeronautics and Space Administration
made, designated country, Caribbean Basin
country, or NAFTA country end products.
Other End Products:
Line Item No. and Country of Origin
llllllllllllllllllllllll
llllllllllllllllllllllll
llllllllllllllllllllllll
[List as necessary]
(iii) The Government will evaluate offers
in accordance with the policies and procedures of FAR part 25. For line items subject
to the Trade Agreements Act, the Government will evaluate offers of U.S.-made, designated country, Caribbean Basin country,
or NAFTA country end products without regard to the restrictions of the Buy American
Act. The Government will consider for award
only offers of U.S.-made, designated country,
Caribbean Basin country, or NAFTA country
end products unless the Contracting Officer
determines that there are no offers for such
products or that the offers for such products
are insufficient to fulfill the requirements of
the solicitation.
(g) Certification Regarding Knowledge of
Child Labor for Listed End Products
(Executive Order 13126). [The Contracting Officer must list in paragraph (g)(1) any end
products being acquired under this solicitation that are included in the List of Products
Requiring Contractor Certification as to
Forced or Indentured Child Labor, unless excluded at FAR 22.1503(b).]
(1) Listed end products.
Listed End Product and Listed Countries of
Origin
llllllllllllllllllllllll
llllllllllllllllllllllll
llllllllllllllllllllllll
(2) Certification. [If the Contracting Officer has identified end products and countries
of origin in paragraph (g)(1) of this provision,
then the offeror must certify to either
(g)(2)(i) or (g)(2)(ii) by checking the appropriate block.]
[ ] (i) The offeror will not supply any end
product listed in paragraph (g)(1) of this provision that was mined, produced, or manufactured in the corresponding country as
listed for that product.
[ ] (ii) The offeror may supply an end
product listed in paragraph (g)(1) of this provision that was mined, produced, or manufactured in the corresponding country as
listed for that product. The offeror certifies
that it has made a good faith effort to determine whether forced or indentured child
labor was used to mine, produce, or manufacture any such end product furnished under
this contract. On the basis of those efforts,
the offeror certifies that it is not aware of
any such use of child labor.

1852.213–70

(End of provision)
ALTERNATE I—JUN 2002
As prescribed in 1813.302–570(a)(2), add the
following paragraph to the end of the basic
provision and identify appropriately:
( ) Recovered Material Certification. As
required by the Resource Conservation and
Recovery
Act
of
1976
(42
U.S.C.
6962(c)(3)(A)(i)), the offeror certifies, that the
percentage of recovered materials to be used
in the performance of the contract will be at
least the amount required by the applicable
contract specifications.
ALTERNATE II—JUN 2002
As prescribed in 1813.302–570(a)(2), add the
following paragraph to the end of the basic
provision and identify appropriately:
(

) Historically Black College or University
and Minority Institution Representation

(1) Definitions. As used in this provision—
‘‘Historically black college or university’’
means an institution determined by the Secretary of Education to meet the requirements of 34 CFR 608.2. For the Department of
Defense, the National Aeronautics and Space
Administration, and the Coast Guard, the
term also includes any nonprofit research institution that was an integral part of such a
college or university before November 14,
1986.
‘‘Minority institution’’ means an institution of higher education meeting the requirements of Section 1046(3) of the Higher Education Act of 1965 (20 U.S.C. 1067k, including
a Hispanic-serving institution of higher education, as defined in Section 316(b)(1) of the
Act (20 U.S.C. 1101a)).
(2) Representation. The offeror represents
that it—
( ) is ( ) is not a historically black college or university;
( ) is ( ) is not a minority institution.
ALTERNATE III—JUN 2002
As prescribed in 1813.302–570(a)(2), add the
following paragraph to the end of the basic
provision and identify appropriately:
( ) Representation of Limited Rights Data
and Restricted Computer Software
(1) This solicitation sets forth the work to
be performed if a contract award results, and
the Government’s known delivery requirements for data (as defined in FAR 27.401).
Any resulting contract may also provide the
Government the option to order additional
data under the Additional Data Requirements clause at FAR 52.227–16, if included in
the contract. Any data delivered under the
resulting contract will be subject to the
Rights in Data-General clause at FAR 52.227–
14 that is to be included in this contract.
Under the latter clause, a Contractor may
withhold from delivery data that qualify as

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1852.213–71

48 CFR Ch. 18 (10–1–02 Edition)

limited rights data or restricted computer
software, and deliver form, fit, and function
data in lieu thereof. The latter clause also
may be used with its Alternates II and/or III
to obtain delivery of limited rights data or
restricted computer software, marked with
limited rights or restricted rights notices, as
appropriate. In addition, use of Alternate V
with this latter clause provides the Government the right to inspect such data at the
Contractor’s facility.
(2) As an aid in determining the Government’s need to include Alternate II or Alternate III in the clause at FAR 52.227–14,
Rights in Data-General, the offeror shall
complete paragraph (3) of this provision to
either state that none of the data qualify as
limited rights data or restricted computer
software, or identify, to the extent feasible,
which of the data qualifies as limited rights
data or restricted computer software. Any
identification of limited rights data or restricted computer software in the offeror’s
response is not determinative of the status
of such data should a contract be awarded to
the offeror.
(3) The offeror has reviewed the requirements for the delivery of data or software
and states [offeror check appropriate
block]—
( ) None of the data proposed for fulfilling
such requirements qualifies as limited rights
data or restricted computer software.
( ) Data proposed for fulfilling such requirements qualify as limited rights data or
restricted computer software and are identified as follows:
llllllllllllllllllllllll
llllllllllllllllllllllll
llllllllllllllllllllllll
NOTE: ‘‘Limited rights data’’ and ‘‘Restricted computer software’’ are defined in
the contract clause entitled ‘‘Rights in DataGeneral.’’
[67 FR 38905, June 6, 2002, as amended at 67
FR 50824, Aug. 6, 2002]

1852.213–71 Evaluation—Other
Than
Commercial Items.
As prescribed in 1813.302–570(b) insert
the following provision:

[Contracting Officer shall insert the evaluation factors, such as (i) technical capability
of the item offered to meet the Government
requirement; (ii) price; (iii) past performance
(see FAR 15.304).]
(b) Options. The Government will evaluate
offers for award purposes by adding the total
price for all options to the total price for the
basic requirement. The Government may determine that an offer is unacceptable if the
option prices are significantly unbalanced.
Evaluation of options shall not obligate the
Government to exercise the option(s).
(End of provision)
[67 FR 38905, June 6, 2002]

1852.214–70 Caution to offerors furnishing descriptive literature.
As prescribed in 1814.201–670(a), insert
the following provision:
CAUTION TO OFFERORS FURNISHING
Descriptive Literature
(Dec 1988)
Bidders are cautioned against furnishing as
a part of their bids descriptive literature
that includes language reserving to the bidder the right to deviate from the requirements of the invitation for bids. Statements
that ‘‘Data are subject to change without notice,’’ ‘‘Prices subject to change without notice,’’ or words having a similar effect are
examples of such reservation. The Government will reject as nonresponsive any bid
that incorporates literature containing such
language or any bid that must be evaluated
by using literature containing such language. Bidders should clearly label any submissions of descriptive literature not intended to form a part of a bid as such in
order to preclude any need for the Government to interpret the bidder’s intent in submitting descriptive literature. [See FAR
14.202–5.]

(End of provision)
[61 FR 47082, Sept. 6, 1996]

1852.214–71
Award.

EVALUATION—OTHER THAN COMMERCIAL
ITEMS—JUN 2002
(a) The Government will award a contract
resulting from this solicitation to the responsible offeror whose offer conforming to
the solicitation will be most advantageous to
the Government, price and other factors considered. The following factors shall be used
to evaluate offers:
llllllllllllllllllllllll
llllllllllllllllllllllll
llllllllllllllllllllllll

Grouping

for

Aggregate

As prescribed in 1814.201–670(c), insert
the following provision:
GROUPING FOR AGGREGATE AWARD (MAR 1989)
(a) The Government will evaluate offers
and make award on a basis of the aggregate
offers for items
[Insert the item numbers and/or descriptions].
The Government will not consider an offer
for quantities less than those specified for
these items.

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National Aeronautics and Space Administration
(b) If this is an invitation for bids, the Government will reject as nonresponsive a bid
that is not made on the total quantities for
all of the items specified in paragraph (a) of
this section.

(End of provision)
[61 FR 47082, Sept. 6, 1996]

1852.214–72

Full quantities.

As prescribed in 1814.201–670(b), insert
the following provision:
FULL QUANTITIES (DEC 1988)
The Government will not consider an offer
for quantities of items less than those specified. If this is an invitation for bids, the Government will reject as nonresponsive a bid
that is not made on full quantities.

(End of provision)
[61 FR 47082, Sept. 6, 1996]

1852.215–77 Preproposal/pre-bid
ference.

con-

As prescribed in 1815.209–70(a), insert
the following provision:

1852.215–81

following supporting documentation with its
proposal:
(a) A description of each major item or
work effort.
(b) Categorization of each major item or
work effort as ‘‘must make,’’ ‘‘must buy,’’ or
‘‘can either make or buy.’’
(c) For each item or work effort categorized as ‘‘can either make or buy,’’ a proposal either to ‘‘make’’ or ‘‘buy.’’
(d) Reasons for (i) categorizing items and
work effort as ‘‘must make’’ or ‘‘must buy’’
and (ii) proposing to ‘‘make’’ or ‘‘buy’’ those
categorized as ‘‘can either make or buy.’’
The reasons must include the consideration
given to the applicable evaluation factors described in the solicitation and be in sufficient detail to permit the Contracting Officer to evaluate the categorization and proposal.
(e) Designation of the offeror’s plant or division proposed to make each item or perform each work effort and a statement as to
whether the existing or proposed new facility
is in or near a labor surplus area.
(f) Identification of proposed subcontractors, if known, and their location and size
status.
(g) Any recommendations to defer makeor-buy decisions when categorization of some
items or work efforts is impracticable at the
time of submission.

PREPROPOSAL/PRE-BID CONFERENCE (DEC
1988)

(End of provision)

(a) A preproposal/pre-bid conference will be
held as indicated below:
Date:
Time:
Location:
Other Information, as applicable:
[Insert the applicable conference information.]
(b) Attendance at the preproposal/pre-bid
conference is recommended; however, attendance is neither required nor a prerequisite for proposal/bid submission and
will not be considered in the evaluation.

(End of provision)

[62 FR 3483, Jan. 23, 1997, as amended at 63
FR 9965, Feb. 27, 1998; 63 FR 32764, June 16,
1998]

1852.215–79 Price
adjustment
‘‘Make- or-Buy’’ changes.

As prescribed in 1815.407–70(b), insert
the following clause:
PRICE ADJUSTMENT FOR ‘‘MAKE-OR-BUY’’
CHANGES (DEC 1988)
The following make-or-buy items are subject to the provisions of paragraph (d) of the
clause at FAR 52.215–21, Change or Additions
to Make-or-Buy Program, of this contract:

[62 FR 3483, Jan. 23, 1997, as amended at 63
FR 9965, Feb. 27, 1998]

Item Description

1852.215–78 Make or buy program requirements.

Make-or-Buy
Determination

As prescribed in 1815.408–70(a), insert
the following provision:

(End of clause)

MAKE OR BUY PROGRAM REQUIREMENTS (FEB
1998)

[62 FR 3483, Jan. 23, 1997, as amended at 63
FR 9966, Feb. 27, 1998]

The offeror shall submit a Make-or-Buy
Program in accordance with the requirements of Federal Acquisition Regulation
(FAR) 15.407–2. The offeror shall include the

1852.215–81

Proposal page limitations.

As prescribed in 1815.209–70(d), insert
the following provision:

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1852.215–84

48 CFR Ch. 18 (10–1–02 Edition)

PROPOSAL PAGE LIMITATIONS (FEB 1998)
(a) The following page limitations are established for each portion of the proposal
submitted in response to this solicitation.
Proposed Section
(List each volume or
section)
lllllllll
lllllllll
lllllllll
lllllllll

Page Limit (Specify
limit)
lllllllll
lllllllll
lllllllll
lllllllll

(b) A page is defined as one side of sheet,
81⁄2’’ x 11’’, with at least one inch margins on
all sides, using not smaller than 12 point
type. Foldouts count as an equivalent number of 81⁄2’’ x 11’’ pages. The metric standard
format most closely approximating the described standard 81⁄2’’ x 11’’ size may also be
used.
(c) Title pages and tables of contents are
excluded from the page counts specified in
paragraph (a) of this provision. In addition,
the Cost section of your proposal is not page
limited. However, this section is to be strictly limited to cost and price information. Information that can be construed as belonging in one of the other sections of the proposal will be so construed and counted
against that section’s page limitation.
(d) If final proposal revisions are requested, separate page limitations will be
specified in the Government’s request for
that submission.
(e) Pages submitted in excess of the limitations specified in this provision will not be
evaluated by the Government and will be returned to the offeror.

(End of provision)

budsman, interested parties must first address their concerns, issues, disagreements,
and/or recommendations to the contracting
officer for resolution.
(b) If resolution cannot be made by the
contracting officer, interested parties may
contact
the
installation
ombudsman,
llllll [Insert name, address, telephone
number, facsimile number, and e-mail address]. Concerns, issues, disagreements, and
recommendations which cannot be resolved
at the installation may be referred to the
NASA ombudsman, the Director of the Contract Management Division, at 202–358–0422,
facsimile
202–358–3083,
e-mail
[email protected]. Please do not contact the ombudsman to request copies of the
solicitation, verify offer due date, or clarify
technical requirements. Such inquiries shall
be directed to the Contracting Officer or as
specified elsewhere in this document.

(End of clause)
Alternate I (JUN 2000) As prescribed
in 1815.7003, insert the following paragraph (c):
(c) If this is a task or delivery order contract, the ombudsman shall review complaints from contractors and ensure they are
afforded a fair opportunity to be considered,
consistent with the procedures of the contract.
[62 FR 3484, Jan. 23, 1997, as amended at 65
FR 38777, June 22, 2000]

1852.216–73 Estimated cost and cost
sharing.
As prescribed in 1816.307–70(a), insert
the following clause:

[62 FR 3483, Jan. 23, 1997, as amended at 63
FR 9966, Feb. 27, 1998]

1852.215–84 Ombudsman.
As prescribed in 1815.7003, insert the
following clause:
OMBUDSMAN (JUN 2000)
(a) An ombudsman has been appointed to
hear and facilitate the resolution of concerns
from offerors, potential offerors, and contractors during the preaward and postaward
phases of this acquisition. When requested,
the ombudsman will maintain strict confidentiality as to the source of the concern.
The existence of the ombudsman is not to diminish the authority of the contracting officer, the Source Evaluation Board, or the selection official. Further, the ombudsman
does not participate in the evaluation of proposals, the source selection process, or the
adjudication of formal contract disputes.
Therefore, before consulting with an om-

ESTIMATED COST AND COST SHARING (DEC
1991)
(a) It is estimated that the total cost of
performing the work under this contract will
be $lllll.
(b) For performance of the work under this
contract, the Contractor shall be reimbursed
for not more than lll percent of the costs
of performance determined to be allowable
under the Allowable Cost and Payment
clause. The remaining lll percent or more
of the costs of performance so determined
shall constitute the Contractor’s share, for
which it will not be reimbursed by the Government.
(c) For purposes of the lllllll
[insert ‘‘Limitation of Cost’’ or ‘‘Limitation
of Funds’’] clause, the total estimated cost
to the Government is hereby established as
$llll (insert estimated Government
share); this amount is the maximum Government liability.

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National Aeronautics and Space Administration
(d) The Contractor shall maintain records
of all contract costs claimed by the Contractor as constituting part of its share.
Those records shall be subject to audit by
the Government. Costs contributed by the
Contractor shall not be charged to the Government under any other grant, contract, or
agreement (including allocation to other
grants, contracts, or agreements as part of
an independent research and development
program).

(End of clause)
[62 FR 3484, Jan. 23, 1997]

1852.216–74 Estimated cost and fixed
fee.
As prescribed in 1816.307–70(b), insert
the following clause:
ESTIMATED COST AND FIXED FEE (DEC 1991)
The estimated cost of this contract is
llllll exclusive of the fixed fee of
llllll. The total estimated cost and
fixed fee is llllll.

(End of clause)
[62 FR 3484, Jan. 23, 1997]

1852.216–75 Payment of fixed fee.
As prescribed in 1816.307–70(c), insert
the following clause:
PAYMENT OF FIXED FEE (DEC 1988)
The fixed fee shall be paid in monthly installments based upon the percentage of
completion of work as determined by the
Contracting Officer.

(End of clause)
[62 FR 3484, Jan. 23, 1997]

1852.216–76 Award Fee for service contracts.
As prescribed in 1816.406–70(a), insert
the following clause:
AWARD FEE FOR SERVICE CONTRACTS (JUN
2000)
(a) The contractor can earn award fee from
a minimum of zero dollars to the maximum
stated in NASA FAR Supplement clause
1852.216–85, ‘‘Estimated Cost and Award Fee’’
in this contract.
(b) Beginning 6* months after the effective
date of this contract, the Government shall
evaluate the Contractor’s performance every
6* months to determine the amount of award
fee earned by the contractor during the period. The Contractor may submit a self-eval-

1852.216–76

uation of performance for each evaluation
period under consideration. These self-evaluations will be considered by the Government in its evaluation. The Government’s
Fee Determination Official (FDO) will determine the award fee amounts based on the
Contractor’s performance in accordance with
[identify performance evaluation plan]. The
plan may be revised unilaterally by the Government prior to the beginning of any rating
period to redirect emphasis.
(c) The Government will advise the Contractor in writing of the evaluation results.
The [insert payment office] will make payment
based on [Insert method of authorizing award
fee payment, e.g., issuance of unilateral modification by contracting officer].
(d) After 85 percent of the potential award
fee has been paid, the Contracting Officer
may direct the withholding of further payment of award fee until a reserve is set aside
in an amount that the Contracting Office
considers necessary to protect the Government’s interest. This reserve shall not exceed 15 percent of the total potential award
fee.
(e) The amount of award fee which can be
awarded in each evaluation period is limited
to the amounts set forth at [identify location
of award fee amounts]. Award fee which is not
earned in an evaluation period cannot be reallocated to future evaluation periods.
(f)(1) Provisional award fee payments
[insert ‘‘will’’ or ‘‘will not’’, as applicable] be
made under this contract pending the determination of the amount of fee earned for an
evaluation period. If applicable, provisional
award fee payments will be made to the Contractor on a [insert the frequency of provisional payments (not more often than monthly)]
basis. The total amount of award fee available in an evaluation period that will be provisionally paid is the lesser of [Insert a percent not to exceed 80 percent] or the prior
period’s evaluation score.
(2) Provisional award fee payments will be
superseded by the final award fee evaluation
for that period. If provisional payments exceed the final evaluation score, the Contractor will either credit the next payment
voucher for the amount of such overpayment
or refund the difference to the Government,
as directed by the Contracting Officer.
(3) If the Contracting Officer determines
that the Contractor will not achieve a level
of performance commensurate with the provisional rate, payment of provisional award
fee will be discontinued or reduced in such
amounts as the Contracting Officer deems
appropriate. The Contracting Officer will notify the Contractor in writing if it is determined that such discontinuance or reduction
is appropriate.
(4) Provisional award fee payments [insert
‘‘will’’ or ‘‘will not’’, as appropriate] be made
prior to the first award fee determination by
the Government.

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1852.216–77

48 CFR Ch. 18 (10–1–02 Edition)

(g) Award fee determinations are unilateral decisions made solely at the discretion
of the Government.
*[A period of time greater or lesser than 6
months may be substituted in accordance
with 1816.405–272(a).]

(End of clause)
[62 FR 3484, Jan. 23, 1997, as amended at 62
FR 36733, July 9, 1997; 63 FR 13134, Mar. 18,
1998; 65 FR 38777, June 22, 2000]

1852.216–77 Award fee for end item
contracts.
As prescribed in 1816.406–70(b), insert
the following clause:
AWARD FEE FOR END ITEM CONTRACTS (JUN
2000)
(a) The contractor can earn award fee, or
base fee, if any, from a minimum of zero dollars to the maximum stated in NASA FAR
Supplement clause 1852.216–85, ‘‘Estimated
Cost and Award Fee’’ in this contract. All
award fee evaluations, with the exception of
the last evaluation, will be interim evaluations. At the last evaluation, which is final,
the Contractor’s performance for the entire
contract will be evaluated to determine total
earned award fee. No award fee or base fee
will be paid to the Contractor if the final
award fee evaluation is ‘‘poor/unsatisfactory.’’
(b) Beginning 6* months after the effective
date of this contract, the Government will
evaluate the Contractor’s interim performance every 6* months to monitor Contractor
performance prior to contract completion
and to provide feedback to the Contractor.
The evaluation will be performed in accordance with [identify performance evaluation
plan] to this contract. The Contractor may
submit a self-evaluation of performance for
each period under consideration. These selfevaluations will be considered by the Government in its evaluation. The Government
will advise the Contractor in writing of the
evaluation results. The plan may be revised
unilaterally by the Government prior to the
beginning of any rating period to redirect
emphasis.
(c)(1) Base fee, if applicable, will be paid in
[Insert ‘‘monthly’’, or less frequent period] installments based on the percent of completion of
the work as determined by the Contracting Officer.
(2) Interim award fee payments will be
made to the Contractor based on each interim evaluation. The amount of the interim
award fee payment is limited to the lesser of
the interim evaluation score or 80 percent of
the fee allocation to that period less any provisional payments made during the period.
All interim award fee payments will be su-

perseded by the final award fee determination.
(3) Provisional award fee payments will
[insert ‘‘not’’ if applicable] be made under this
contract pending each interim evaluation. If
applicable, provisional award fee payments
will be made to the Contractor on a [insert
the frequency of provisional payments (not more
often than monthly)] basis. The amount of
award fee which will be provisionally paid in
each evaluation period is limited to [Insert a
percent not to exceed 80 percent] of the prior
interim evaluation score (see [insert applicable cite]). Provisional award fee payments
made each evaluation period will be superseded by the interim award fee evaluation
for that period. If provisional payments
made exceed the interim evaluation score,
the Contractor will either credit the next
payment voucher for the amount of such
overpayment or refund the difference to the
Government, as directed by the Contracting
Officer. If the Government determines that
(i) the total amount of provisional fee payments will apparently substantially exceed
the anticipated final evaluation score, or (ii)
the prior interim evaluation is ‘‘poor/unsatisfactory,’’ the Contracting Officer will direct the suspension or reduction of the future payments and/or request a prompt refund of excess payments as appropriate.
Written notification of the determination
will be provided to the Contractor with a
copy to the Deputy Chief Financial Officer
(Finance).
(4) All interim (and provisional, if applicable) fee payments will be superseded by the
fee determination made in the final award
fee evaluation. The Government will then
pay the Contractor, or the Contractor will
refund to the Government the difference between the final award fee determination and
the cumulative interim (and provisional, if
applicable) fee payments. If the final award
fee evaluation is ‘‘poor/unsatisfactory’’, any
base fee paid will be refunded to the Government.
(5) Payment of base fee, if applicable, will
be made based on submission of an invoice
by the Contractor. Payment of award fee will
be made by the [insert payment office] based
on [Insert method of making award fee payment, e.g., issuance of a unilateral modification
by the Contracting Officer].
(d) Award fee determinations are unilateral decisions made solely at the discretion
of the Government.
* [A period of time greater or lesser than 6
months may be substituted in accordance
with 1816.405–272(a).]

(End of clause)
[62 FR 3485, Jan. 23, 1997, as amended at 62
FR 36733, July 9, 1997; 65 FR 38778, June 22,
2000]

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National Aeronautics and Space Administration
1852.216–78 Firm fixed price.
As prescribed in 1816.202–70, insert the
following clause:
FIRM FIXED PRICE (DEC 1988)
The total firm fixed price of this contract
is $
[Insert the appropriate amount].

(End of clause)
[62 FR 3485, Jan. 23, 1997]

1852.216–80 Task ordering procedure.
As prescribed in 1816.506–70, insert the
following clause:
TASK ORDERING PROCEDURES (OCT 1996)
(a) Only the Contracting Officer may issue
task orders to the Contractor, providing specific authorization or direction to perform
work within the scope of the contract and as
specified in the schedule. The Contractor
may incur costs under this contract in performance of task orders and task order modifications issued in accordance with this
clause. No other costs are authorized unless
otherwise specified in the contract or expressly authorized by the Contracting Officer.
(b) Prior to issuing a task order, the Contracting Officer shall provide the Contractor
with the following date:
(1) A functional description of the work
identifying the objectives or results desired
from the contemplated task order.
(2) Proposed performance standards to be
used as criteria for determining whether the
work requirements have been met.
(3) A request for a task plan from the Contractor to include the technical approach,
period of performance, appropriate cost information, and any other information required to determine the reasonableness of
the Contractor’s proposal.
(c) Within ll calendar days after receipt
of the Contracting Officer’s request, the Contractor shall submit a task plan conforming
to the request.
(d) After review and any necessary discussions, the Contracting Officer may issue a
task order to the Contractor containing, as a
minimum, the following:
(1) Date of the order.
(2) Contract number and order number.
(3) Functional description of the work
identifying the objectives or results desired
from the task order, including special instructions or other information necessary
for performance of the task.
(4) Performance standards, and where appropriate, quality assurance standards.
(5) Maximum dollar amount authorized
(cost and fee or price). This includes allocation of award fee among award fee periods, if
applicable.

1852.216–83

(6) Any other resources (travel, materials,
equipment, facilities, etc.) authorized.
(7) Delivery/performance schedule including start and end dates.
(8) If contract funding is by individual task
order, accounting and appropriation data.
(e) The Contractor shall provide acknowledgement of receipt to the Contracting Officer within ll calendar days after receipt of
the task order.
(f) If time constraints do not permit
issuance of a fully defined task order in accordance with the procedures described in
paragraphs (a) through (d), a task order
which includes a ceiling price may be issued.
(g) The Contracting officer may amend
tasks in the same manner in which they are
issued.
(h) In the event of a conflict between the
requirements of the task order and the Contractor’s approved task plan, the task order
shall prevail.

(End of clause)
Alternate I (OCT 1996). As prescribed
in 1816.506–70, insert the following paragraph (i) if the contract does not include 533M reporting:
(i) Contractor shall submit monthly task
order progress reports. As a minimum, the
reports shall contain the following information:
(1) Contract number, task order number,
and date of the order.
(2) Task ceiling price.
(3) Cost and hours incurred to date for each
issued task.
(4) Costs and hours estimated to complete
each issued task.
(5) Significant issues/problems associated
with a task.
(6) Cost summary of the status of all tasks
issued under the contract.
[62 FR 3485, Jan. 23, 1997]

1852.216–81 Estimated cost.
As prescribed in 1816.307–70(d), insert
the following clause:
ESTIMATED COST (DEC 1988)
The total estimated cost for complete performance of this contract is $
[Insert
total estimated cost of the contract]. See
FAR clause 52.216–11, Cost Contract—No Fee,
of this contract.

(End of clause)
[62 FR 3486, Jan. 23, 1997]

1852.216–83 Fixed price incentive.
As prescribed in 1816.406–70(c), insert
the following clause:

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1852.216–84

48 CFR Ch. 18 (10–1–02 Edition)

FIXED PRICE INCENTIVE (OCT 1996)
The target cost of this contract is $lll.
The Target profit of this contract is $lll.
The target price (target cost plus target
profit) of this contract is $lll. [The ceiling price is $lll.]
The cost sharing for target cost underruns
is: Government lllpercent; Contractor
lllpercent.
The cost sharing for target cost overruns
is: Government lllpercent; Contractor
lllpercent.

(End of clause)
[62 FR 3486, Jan. 23, 1997, as amended at 62
FR 36733, July 9, 1997]

1852.216–84 Estimated cost and incentive fee.
As prescribed in 1816.406–70(d), insert
the following clause:
ESTIMATED COST AND INCENTIVE FEE (OCT
1996)
The target cost of this contract is $lll.
The target fee of this contract is $lll. The
total target cost and target fee as contemplated by the Incentive Fee clause of this
contract are $lll.
The maximum fee is $lll.
The minimum fee is $lll.
The cost sharing for cost underruns is:
Government
lllpercent;
Contractor
lllpercent.
The cost sharing for cost overruns is: Government
lllpercent;
Contractor
lllpercent.

(End of clause)
[62 FR 3486, Jan. 23, 1997, as amended at 62
FR 36733, July 9, 1997]

1852.216–85
fee.

Estimated cost and award

As prescribed in 1816.406–70(e), insert
the following clause:
ESTIMATED COST AND AWARD FEE (SEP 1993)
The estimated cost of this contract is
$lll. The maximum available award fee,
excluding base fee, if any, is $lll. The base
fee is $lll. Total estimated cost, base fee,
and maximum award fee are $lll.

(End of clause)
Alternate I (SEP 1993) As prescribed in
1816.405–70(e), insert the following sentence at the end of the clause:

The maximum positive performance incentive is $lll. The maximum negative performance incentive is (1).
(1) For research development hardware
contracts, insert [equal to total earned
award fee (including any base fee)]. For production hardware contracts, insert [$total potential award fee amount, including any base
fee)].

(End of clause)
[62 FR 3486, Jan. 23, 1997, as amended at 62
FR 36733, July 9, 1997]

1852.216–87 Submission
for payment.

of

vouchers

As prescribed in 1816.307–70(e), insert
the following clause:
SUBMISSION FOR VOUCHERS FOR PAYMENT
(MAR 1998)
(a) The designated billing office for cost
vouchers for purposes of the Prompt Payment clause of this contract is indicated
below. Public vouchers for payment of costs
shall include a reference to the number of
this contract.
(b)(1) If the contractor is authorized to
submit interim cost vouchers directly to the
NASA paying office, the original voucher
should be submitted to: [Insert the mailing
address for submission of cost vouchers]
(2) For any period that the Defense Contract Audit Agency has authorized the Contractor to submit interim cost vouchers directly to the Government paying office, interim vouchers are not required to be sent to
the Auditor, and are considered to be provisionally approved for payment, subject to
final audit.
(3) Copies of vouchers should be submitted
as directed by the Contracting Officer. (c) If
the contractor is not authorized to submit
interim cost vouchers directly to the paying
office as described in paragraph (b), the contractor shall prepare and submit vouchers as
follows:
(1) One original Standard Form (SF) 1034,
SF 1035, or equivalent Contractor’s attachment to: [Insert the appropriate NASA or
DCAA mailing office address for submission
of cost vouchers]
(2) Five copies of SF 1034, SF 1035A, or
equivalent Contractor’s attachment to the
following offices by insertion in the memorandum block of their names and addresses:
(i) Copy 1 NASA Contracting Officer;
(ii) Copy 2 Auditor;
(iii) Copy 3 Contractor;
(iv) Copy 4 Contract administration office;
and
(v) Copy 5 Project management office.
(3) The Contracting Officer may designate
other recipients as required.

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National Aeronautics and Space Administration
(d) Public vouchers for payment of fee
shall be prepared similarly to the procedures
in paragraphs (b) or (c) of this clause, whichever is applicable, and be forwarded to:
[insert the mailing address for submission of
fee vouchers] This is the designated billing
office for fee vouchers for purposes of the
Prompt Payment clause of this contract.
(e) In the event that amounts are withheld
from payment in accordance with provisions
of this contract, a separate voucher for the
amount withheld will be required before payment for that amount may be made.

(End of clause)
[63 FR 15321, Mar. 31, 1998]

1852.216–88

Performance incentive.

As prescribed in 1816.406–70(f), insert
the following clause:
PERFORMANCE INCENTIVE (JAN 1997)
(a) A performance incentive applies to the
following hardware item(s) delivered under
this contract: (1).
The performance incentive will measure
the performance of those items against the
salient hardware performance requirement,
called ‘‘unit(s) of measurement,’’ e.g.,
months in service or amount of data transmitted, identified below. The performance
incentive becomes effective when the hardware is put into service. It includes a standard performance level, a positive incentive,
and a negative incentive, which are described in this clause.
(b) Standard performance level. At the
standard performance level, the Contractor
has met the contract requirement for the
unit of measurement. Neither positive nor
negative incentives apply when this level is
achieved but not exceeded. The standard performance level for (1) ll is established as
follows: (2).
(c) Positive incentive. The Contractor
earns a separate positive incentive amount
for each hardware item listed in paragraph
(a) of this clause when the standard performance level for that item is exceeded. The
amount earned for each item varies with the
units of measurement achieved, up to a maximum
positive
performance
incentive
amount of $ (3) ll per item. The units of
measurement and the incentive amounts associated with achieving each unit are shown
below: (4).
(d) Negative incentive. The Contractor will
pay to the Government a negative incentive
amount for each hardware item that fails to
achieve the standard performance level. The
amount to be paid for each item varies with
the units of measurement achieved, up to the
maximum negative incentive amount of $ (5)
ll. The units of measurement and the in-

1852.216–89

centive amounts associated with achieving
each unit are shown below: (6).
(e) The final calculation of positive or negative performance incentive amounts shall
be done when performance (as defined by the
unit of measurement) ceases or when the
maximum positive incentive is reached.
(1) When the Contracting Officer determines that the performance level achieved
fell below the standard performance level,
the Contractor will either pay the amount
due the Government or credit the next payment voucher for the amount due, as directed by the Contracting Officer.
(2) When the performance level exceeds the
standard level, the Contractor may request
payment of the incentive amount associated
with a given level of performance, provided
that such payments shall not be more frequent than monthly. When performance
ceases or the maximum positive incentive is
reached, the Government shall calculate the
final performance incentive earned and unpaid and promptly remit it to the contractor.
(f) If performance cannot be demonstrated,
through no fault of the Contractor, within
[insert number of months or years] after the
date of hardware acceptance by the Government, the Contractor will be paid [insert percentage] of the maximum performance incentive.
(g) The decisions made as to the amount(s)
of positive or negative incentives are subject
to the Disputes clause.
(1) Insert applicable item number(s) and/or
nomenclature.
(2) Insert a specific unit of measurement
for each hardware item listed in (1) and each
salient characteristic, if more than one.
(3) Insert the maximum positive performance incentive amount (see 1816.402–270(e) (1)
and (2)).
(4) Insert all units of measurement and associated dollar amounts up to the maximum
performance incentive.
(5) Insert the appropriate amount in accordance with 1816.402–270(e).
(6) Insert all units of measurement and associated dollar amounts up to the maximum
negative performance incentive.

(End of clause)
[62 FR 3486, Jan. 23, 1997, as amended at 62
FR 36733, July 9, 1997]

1852.216–89
forms.

Assignment

and

As prescribed in 1816.307–70(f), insert
the following clause:
ASSIGNMENT AND RELEASE FORMS (JUL 1997)
The Contractor shall use the following
forms to fulfill the assignment and release

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1852.217–70

48 CFR Ch. 18 (10–1–02 Edition)

requirements of FAR clause 52.216–7, Allowable Cost and Payment, and FAR clause
52.216–13, Allowable Cost and Payment
(Facilities):
NASA Form 778, Contractor’s Release;
NASA Form 779, Assignee’s Release;
NASA Form 780, Contractor’s Assignment
of Refunds, Rebates, Credits, and Other
Amounts; and
NASA Form 781, Assignee’s Assignment of
Refunds, Rebates, Credits, and Other
Amounts.
Computer generated forms are acceptable,
provided that they comply with FAR clause
52.253–1, Computer Generated Forms.

(End of clause)
[62 FR 36733, July 9, 1997; 62 FR 40309, July 28,
1997]

1852.217–70 Property
administration
and reporting.
As prescribed in 1817.7002–4 insert the
following clause:
PROPERTY ADMINISTRATION AND REPORTING
(DEC 1988)
All property acquired for, and reimbursed
by, NASA or transferred by NASA for use
under this NASA-Defense Purchase Request
shall be controlled and accounted for in accordance with the Military Department’s
normal procedures. All excess items, however, costing $500 or more and in condition
Code 7 or better (GSA Condition Codes) shall
be reported to the NASA originating office
for possible reutilization before disposition.

(End of clause)
1852.217–71 Phased acquisition using
down-selection procedures.
As prescribed in 1817.7302(a), insert
the following clause:
PHASED ACQUISITION USING DOWN-SELECTION
PROCEDURES (MAY 2000)
(a) This solicitation is for the acquisition
of llll [insert Program title]. The acquisition will be conducted as a two-phased procurement using a competitive down-selection technique between phases. In this technique, two or more contractors will be selected for Phase 1. It is expected that the
single contractor for Phase 2 will be chosen
from among these contractors after a competitive down-selection.
(b) Phase 1 is for the llll [insert purpose of phase]. Phase 2 is for llll [insert
general Phase 2 goals].
(c) The competition for Phase 2 will be
based on the results of Phase 1, and the
award criteria for Phase 2 will include successful completion of Phase 1 requirements.

(d) NASA will issue a separate, formal solicitation for Phase 2 that will include all information required for preparation of proposals, including the final evaluation factors.
(e) Phase 2 will be synopsized in the Commerce Business Daily (CBD) in accordance
with FAR 5.201 and 5.203 unless one of the exceptions in FAR 5.202 applies. Notwithstanding NASA’s expectation that only the
Phase 1 contractors will be capable of successfully competing for Phase 2, all proposals
will be considered. Any other responsible
source may indicate its desire to submit a
proposal by responding to the Phase 2 synopsis, and NASA will provide that source a
solicitation.
(f) To be considered for Phase 2 award,
offerors must demonstrate a design maturity
equivalent to that of the Phase 1 contractors. This, demonstration shall include the
following Phase 1 deliverables upon which
Phase 2 award will be based: llll [(insert
the specific Phase 1 deliverables]. Failure to
fully and completely demonstrate the appropriate level of design maturity may render
the proposal unacceptable with no further
consideration for contract award.
(g) The following draft Phase 2 evaluation
factors are provided for your information.
Please note that these evaluation factors are
not final, and NASA reserves the right to
change them at any time up to and including
the date upon which Phase 2 proposals are
solicited.
[Insert draft Phase 2 evaluation factors
(and subfactors, if available), including demonstration of successful completion of Phase
1 requirements.]
(h) Although NASA will request Phase 2
proposals from Phase contractors, submission of the Phase 2 proposal is not a requirement of the Phase 1 contract. Accordingly,
the costs of preparing these proposals shall
not be a direct charge to the Phase 1 contract or any other Government contract.
(i) The anticipated schedule for conducting
this phased procurement is provided for your
information. These dates are projections
only and are not intended to commit NASA
to complete a particular action at a given
time. [Insert dates below].
Phase
Phase
Phase
Phase
Phase

1
2
2
2
2

award—
synopsis—
proposal requested—
proposal receipt—
award—

(End of clause)
[63 FR 56093, Oct. 21, 1998, as amended at 65
FR 30013, May 10, 2000]

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National Aeronautics and Space Administration
1852.217–72 Phased acquisition using
progressive competition down-selection procedures.
As prescribed in 1817.7302(b), insert
the following clause:
PHASED ACQUISITION USING PROGRESSIVE
COMPETITION DOWN-SELECTION PROCEDURES
(MAY 2000)
(a) This solicitation is for the acquisition
of llll [insert Program title]. The acquisition will be conducted as a two-phased procurement using a progressive competition
down-selection technique between phases. In
this technique, two or more contractors will
be selected for Phase
1. It is expected that the single contractor
for Phase 2 will be chosen from among these
contractors after a competitive down-selection.
(b) Phase 1 is for the llll [insert purpose of phase]. Phase 2 is for llll [insert
general Phase 2 goals].
(c) The competition for Phase 2 will be
based on the results of Phase 1, and the
award criteria for Phase 2 will include successful completion of Phase 1 requirements.
(d) NASA does not intend to issue a separate, formal solicitation for Phase 2. Instead,
Phase 2 proposals will be requested from the
Phase 1 contractors by means of llll
[indicate method of requesting proposals,
e.g., by a letter]. All information required
for preparation of Phase 2 proposals, including the final evaluation criteria and factors,
will be provided at that time.
(e) Phase 2 will be synopsized in the Commerce Business Daily (CBD) in accordance
with FAR 5.201 and 5.203 unless one of the exceptions in FAR 5.202 applies. Notwithstanding NASA’s expectation that only the
Phase 1 contractors will be capable of successfully competing for Phase 2, all proposals
will be considered. Any other responsible
source may indicate its desire to submit a
proposal by responding to the Phase 2 synopsis, and NASA will provide that source to
all the material furnished to the Phase 1
contractors that is necessary to submit a
proposal.
(f) To be considered for Phase 2 award,
offerors must demonstrate a design maturity
equivalent to that of the Phase 1 contractors. This, demonstration shall include the
following Phase 1 deliverables upon which
Phase 2 award will be based: llll [insert
the specific Phase 1 deliverables]. Failure to
fully and completely demonstrate the appropriate level of design maturity may render
the proposal unacceptable with no further
consideration for contract award.
(g) The following draft Phase 2 evaluation
factors are provided for your information.
Please note that these evaluation factors are
not final, and NASA reserves the right to
change them at any time up to and including

1852.219–74

the date upon which Phase 2 proposals are
requested. Any such changes in evaluation
factors will not necessitate issuance of a
new, formal solicitation for Phase 2.
[Insert draft Phase 2 evaluation factors
(and subfactors, if available), including demonstration of successful completion of Phase
1 requirements.]
(h) Although NASA will request Phase 2
proposals from Phase 1 contractors, submission of the Phase 2 proposal is not a requirement of the Phase 1 contract. Accordingly,
the costs of preparing these proposals shall
not be a direct charge to the Phase 1 contract or any other Government contract.
(i) The anticipated schedule for conducting
this phased procurement is provided for your
information. These dates are projections
only and are not intended to commit NASA
to complete a particular action at a given
time. [Insert dates below].
Phase
Phase
Phase
Phase
Phase

1
2
2
2
2

award—
synopsis—
proposal requested—
proposal receipt—
award—

(End of clause)
[63 FR 56093, Oct. 21, 1998, as amended at 65
FR 30013, May 10, 2000]

1852.219–73 Small
tracting plan.

business

As prescribed in 1819.708–70(a), insert
the following provision:
SMALL BUSINESS SUBCONTRACTING PLAN
(MAY 1999)
(a) This provision is not applicable to
small business concerns.
(b) The contract expected to result from
this solicitation will contain FAR clause
52.219–9, ‘‘Small Business Subcontracting
Plan.’’ The apparent low bidder must submit
the complete plan within [Insert number of
days] calendar days after request by the Contracting Officer.

(End of provision)
[62 FR 36733, July 9, 1997; 62 FR 40309, July 28,
1997, as amended at 64 FR 25215, May 11, 1999]

1852.219–74 Use of rural area small
businesses.
As prescribed in 1819.7103, insert the
following clause:
USE OF RURAL AREA SMALL BUSINESS (SEP
1990)
(a) Definitions.

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1852.219–75

48 CFR Ch. 18 (10–1–02 Edition)

Rural area means any county with a population of fewer than twenty thousand individuals.
Small business concern, as used in this
clause, means a concern, including its affiliates, that is independently owned and operated, not dominant in the field of operation
in which it is bidding under this contract,
and qualified as a small business under the
criteria and size standards in 13 CFR part
121.
(b) NASA prime and subcontractors are encouraged to use their best efforts to award
subcontracts to small business concerns located in rural areas.
(c) Contractors acting in good faith may
rely on written representations by their subcontractors regarding their status as small
business concerns located in rural areas.
(d) The Contractor agrees to insert the provisions of this clause, including this paragraph (d), in all subcontracts hereunder that
offer subcontracting possibilities.

(End of clause)
[55 FR 47479, Nov. 14, 1990]

1852.219–75 Small business subcontracting reporting.
As prescribed in 1819.708–70(b), insert
the following clause:
SMALL BUSINESS SUBCONTRACTING REPORTING
(MAY 1999)
(a) The Contractor shall submit the Summary Subcontract Report (Standard Form
(SF) 295) semiannually for the reporting periods specified in block 4 of the form. All other
instructions for SF 295 remain in effect.
(b) The Contractor shall include this clause
in all subcontracts that include the clause at
FAR 52.219–9.

(End of clause)
[62 FR 36733, July 9, 1997; 62 FR 40309, July 28,
1997, as amended at 64 FR 25216, May 11, 1999]

1852.219–76 NASA 8 percent goal.
As prescribed in 1819.7003 insert the
following clause:
NASA 8 PERCENT GOAL (JUL 1997)
(a) Definitions.
Historically Black Colleges or University, as
used in this clause means an institution determined by the Secretary of Education to
meet the requirements of 34 CFR Section
608.2. The term also includes any nonprofit
research institution that was an integral
part of such a college or university before
November 14, 1986.
Minority institutions, as used in this clause,
means an institution of higher education

meeting the requirements of section 1046(3)
of the Higher Education Act of 1965 (20 U.S.C.
1135d–5(3)) which for the purposes of this
clause includes a Hispanic-serving institution of higher education as defined in section
316(b)(1) of the Act (20 U.S.C. 1059c(b)(1)).
Small disadvantaged business concern, as
used in this clause, means a small business
concern that (1) is at least 51 percent unconditionally owned by one or more individuals
who are both socially and economically disadvantaged, or a publicly owned business
having at least 51 percent of its stock unconditionally owned by one or more socially and
economically disadvantaged individuals, and
(2) has its management and daily business
controlled by one or more such individuals.
This term also means a small business concern that is at least 51 percent unconditionally owned by an economically disadvantaged Indian tribe or Native Hawaiian Organization, or a publicly owned business having
at least 51 percent of its stock unconditionally owned by one or more of these entities,
which has its management and daily business controlled by members of an economically disadvantaged Indian tribe or Native
Hawaiian Organization, and which meets the
requirements of 13 CFR 124.
Women-owned small business concern, as
used in this clause, means a small business
concern (1) which is at least 51 percent
owned by one or more women or, in the case
of any publicly owned business, at least 51
percent of the stock of which is owned by
one or more women, and (2) whose management and daily business operations are controlled by one or more women.
(b) The NASA Administrator is required by
statute to establish annually a goal to make
available to small disadvantaged business
concerns, Historically Black Colleges and
Universities, minority institutions, and
women-owned small business concerns, at
least 8 percent of NASA’s procurement dollars under prime contracts or subcontracts
awarded in support of authorized programs,
including the space station by the time operational status is obtained.
(c) The contractor hereby agrees to assist
NASA in achieving this goal by using its
best efforts to award subcontracts to such
entities to the fullest extent consistent with
efficient contract performance.
(d) Contractors acting in good faith may
rely on written representations by their subcontractors regarding their status as small
disadvantaged business concerns, Historically Black Colleges and Universities, minority institutions, and women-owned small
business concerns.

(End of clause)
[62 FR 36733, July 9, 1997; 62 FR 40309, July 28,
1997]

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National Aeronautics and Space Administration
1852.219–77 NASA Mentor-Prote´ ge´ program.
As prescribed in 1819.7219(a), insert
the following clause:
NASA MENTOR-PROTE´ GE´ PROGRAM (MAY
1999)
(a) Prime contractors, including certain
small businesses, are encouraged to participate in the NASA Mentor-Prote´ ge´ Program
for the purpose of providing developmental
assistance to eligible prote´ ge´ entities to enhance their capabilities and increase their
participation in NASA contracts.
(b) The Program consists of:
(1) Mentor firms, which are large prime
contractors with at least one active subcontracting plan or eligible small businesses;
(2) Prote´ ge´ s, which are subcontractors to
the prime contractor, include small disadvantaged business concerns, women-owned
small business concerns, Historically Black
Colleges and Universities, and minority institutions meeting the qualifications specified in NASA FAR Supplement (NFS)
1819.7209.
(3) Mentor-prote´ ge´ agreements, approved
by the NASA Office of Small and Disadvantaged Business Utilization (OSDBU);
(4) In contracts with award fee incentives,
potential for payment of additional fee for
voluntary participation and successful performance in the Mentor-Prote´ ge´ Program.
(c) Mentor participation in the Program,
described in NFS 1819.72, means providing
technical, managerial and financial assistance to aid prote´ ge´ s in developing requisite
high-tech expertise and business systems to
compete for and successfully perform NASA
contracts and subcontracts.
(d) Contractors interested in participating
in the program are encouraged to contact
the NASA OSDBU, Washington, DC 20546,
(202) 358–2088, for further information.

(End of clause)
[62 FR 36734, July 9, 1997; 62 FR 40309, July 28,
1997, as amended at 64 FR 10572, Mar. 5, 1999;
64 FR 25216, May 11, 1999]

1852.219–79 Mentor requirements and
evaluation.
As prescribed in 1819.7219(b), insert
the following clause:
MENTOR REQUIREMENTS AND EVALUATION
(JUL 1997)
(a) The purpose of the NASA MentorProte´ ge´ Program is for a NASA prime contractor to provide developmental assistance
to certain subcontractors qualifying as
prote´ ge´ s. Eligible prote´ ge´ s include small disadvantaged business concerns, women-owned
small business concerns, Historically Black

1852.219–79

Colleges and Universities, and minority institutions meeting the qualifications specified in NASA FAR Supplement (NFS)
1819.7209.
(b) NASA will evaluate the contractor’s
performance on the following factors. If this
contract includes an award fee incentive,
this assessment will be accomplished as part
of the fee evaluation process.
(1) Specific actions taken by the contractor, during the evaluation period, to increase the participation of prote´ ge´ s as subcontractors and suppliers;
(2) Specific actions taken by the contractor during this evaluation period to develop the technical and corporate administrative expertise of a prote´ ge´ as defined in
the agreement;
(3) To what extent the prote´ ge´ has met the
developmental objectives in the agreement;
and
(4) To what extent the firm’s participation
in the Mentor-Prote´ ge´ Program resulted in
the prote´ ge´ receiving competitive contract(s) and subcontract(s) from private
firms and agencies other than the mentor.
(c) Semi-annual reports shall be submitted
by the mentor to the NASA Mentor-Prote´ ge´
program manager, NASA Headquarters
OSDBU, to include information as outlined
in paragraph (b).
(d) The mentor will notify the OSDBU and
the contracting officer, in writing, as least 30
days in advance of the mentor firm’s intent
to voluntarily withdraw from the program or
upon receipt of a prote´ ge´ ’s notice to withdraw from the Program;
(e) Mentor and prote´ ge´ firms will submit a
‘‘lessons learned’’ evaluation to the NASA
OSDBU at the conclusion of the contract. At
the end of each year in the Mentor-Prote´ ge´
Program, the mentor and prote´ ge´ , as appropriate, will formally brief the NASA MentorProte´ ge´ program manager, the technical program manager, and the contracting officer
during a formal program review regarding
Program accomplishments as pertains to the
approved agreement.
(f) NASA may terminate mentor-prote´ ge´
agreements for good cause and exclude mentor or prote´ ge´ firms from participating in
the NASA program. These actions shall be
approved by the NASA OSDBU. NASA shall
terminate an agreement by delivering to the
contractor a Notice specifying the reason for
termination and the effective date. Termination of an agreement does not constitute a
termination of the subcontract between the
mentor and the prote´ ge´ . A plan for accomplishing the subcontract effort should the
agreement be terminated shall be submitted
with the agreement as required in NFS
1819.7213(h).

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1852.223–70

48 CFR Ch. 18 (10–1–02 Edition)
(End of clause)

[62 FR 36734, July 9, 1997; 62 FR 40309, July 28,
1997, as amended at 64 FR 10572, Mar. 5, 1999]

1852.223–70 Safety and health.
As prescribed in 1823.7004(c), insert
the following clause:
SAFETY AND HEALTH (APR 2002)
(a) Safety is the freedom from those conditions that can cause death, injury, occupational illness, damage to or loss of equipment or property, or damage to the environment. NASA’s safety priority is to protect:
(1) The public, (2) astronauts and pilots, (3)
the NASA workforce (including contractor
employees working on NASA contracts), and
(4) high-value equipment and property.
(b) The Contractor shall take all reasonable safety and occupational health measures in performing this contract. The Contractor shall comply with all Federal, State,
and local laws applicable to safety and occupational health and with the safety and occupational health standards, specifications,
reporting requirements, and any other relevant requirements of this contract.
(c) The Contractor shall take, or cause to
be taken, any other safety, and occupational
health measures the Contracting Officer may
reasonably direct. To the extent that the
Contractor may be entitled to an equitable
adjustment for those measures under the
terms and conditions of this contract, the
equitable adjustment shall be determined
pursuant to the procedures of the changes
clause of this contract; provided, that no adjustment shall be made under this Safety
and Health clause for any change for which
an equitable adjustment is expressly provided under any other clause of the contract.
(d) The Contractor shall immediately notify and promptly report to the Contracting
Officer or a designee any accident, incident,
or exposure resulting in fatality, lost-time
occupational injury, occupational disease,
contamination of property beyond any stated acceptable limits set forth in the contract
Schedule; or property loss of $25,000 or more,
or Close Call (a situation or occurrence with
no injury, no damage or only minor damage
(less than $1,000) but possesses the potential
to cause any type mishap, or any injury,
damage, or negative mission impact) that
may be of immediate interest to NASA, arising out of work performed under this contract. The Contractor is not required to include in any report an expression of opinion
as to the fault or negligence of any employee. In addition, service contractors
(excluding construction contracts) shall provide quarterly reports specifying lost-time
frequency rate, number of lost-time injuries,
exposure, and accident/incident dollar losses
as specified in the contract Schedule.

(e) The Contractor shall investigate all
work-related incidents, accidents, and Close
Calls, to the extent necessary to determine
their causes and furnish the Contracting Officer a report, in such form as the Contracting Officer may require, of the investigative findings and proposed or completed
corrective actions.
(f)(1) The Contracting Officer may notify
the Contractor in writing of any noncompliance with this clause and specify corrective
actions to be taken. When the Contracting
Officer becomes aware of noncompliance
that may pose a serious or imminent danger
to safety and health of the public, astronauts
and pilots, the NASA workforce (including
contractor employees working on NASA contracts), or high value mission critical equipment or property, the Contracting Officer
shall notify the Contractor orally, with written confirmation. The Contractor shall
promptly take and report any necessary corrective action.
(2) If the Contractor fails or refuses to institute prompt corrective action in accordance with subparagraph (f)(1) of this clause,
the Contracting Officer may invoke the stopwork order clause in this contract or any
other remedy available to the Government in
the event of such failure or refusal.
(g) The Contractor (or subcontractor or
supplier) shall insert the substance of this
clause, including this paragraph (g) and any
applicable Schedule provisions and clauses,
with appropriate changes of designations of
the parties, in all solicitations and subcontracts of every tier, when one or more of
the following conditions exist:
(1) The work will be conducted completely
or partly on premises owned or controlled by
the Government.
(2) The work includes construction, alteration, or repair of facilities in excess of the
simplified acquisition threshold.
(3) The work, regardless of place of performance, involves hazards that could endanger the public, astronauts and pilots, the
NASA workforce (including Contractor employees working on NASA contracts), or high
value equipment or property, and the hazards are not adequately addressed by Occupational Safety and Health Administration
(OSHA) or Department of Transportation
(DOT) regulations (if applicable).
(4) When the Contractor (or subcontractor
or supplier) determines that the assessed
risk and consequences of a failure to properly manage and control the hazard(s) warrants use of the clause.
(h) The Contractor (or subcontractor or
supplier) may exclude the provisions of paragraph (g) from its solicitation(s) and subcontract(s) of every tier when it determines
that the clause is not necessary because the
application of the OSHA and DOT (if applicable) regulations constitute adequate safety
and occupational health protection. When a

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National Aeronautics and Space Administration
determination is made to exclude the provisions of paragraph (g) from a solicitation and
subcontract, the Contractor must notify and
provide the basis for the determination to
the Contracting Officer. In subcontracts of
every tier above the micro-purchase threshold for which paragraph (g) does not apply,
the Contractor (or subcontractor or supplier)
shall insert the substance of paragraphs (a),
(b), (c), and (f) of this clause).
(i) Authorized Government representatives
of the Contracting Officer shall have access
to and the right to examine the sites or
areas where work under this contract is
being performed in order to determine the
adequacy of the Contractor’s safety and occupational health measures under this
clause.
(j) The contractor shall continually update
the safety and health plan when necessary.
In particular, the Contractor shall furnish a
list of all hazardous operations to be performed, and a list of other major or key operations required or planned in the performance of the contract, even though not
deemed hazardous by the Contractor. NASA
and the Contractor shall jointly decide
which operations are to be considered hazardous, with NASA as the final authority.
Before hazardous operations commence, the
Contractor shall submit for NASA concurrence—
(1) Written hazardous operating procedures
for all hazardous operations; and/or
(2) Qualification standards for personnel
involved in hazardous operations.

(End of clause)
[54 FR 28340, July 5, 1989, as amended at 56
FR 12460, Mar. 26, 1991; 58 FR 51142, Sept. 30,
1993; 61 FR 5315, Feb. 12, 1996; 62 FR 14033,
Mar. 25, 1997; 65 FR 37060, June 13, 2000; 65 FR
70316, Nov. 22, 2000; 66 FR 18052, Apr. 5, 2001;
67 FR 17016, Apr. 9, 2002]

1852.223–71

Frequency authorization.

As prescribed in 1823.7101, insert the
following clause:
FREQUENCY AUTHORIZATION (DEC 1988)
(a) Authorization of radio frequencies required in support of this contract shall be
obtained by the Contractor or subcontractor
in need thereof.
(b) For any experimental, developmental,
or operational equipment for which the appropriate frequency allocation has not been
made, the Contractor or subcontractor shall
provide the technical operating characteristics of the proposed electromagnetic radiating device to the Contracting Officer during the initial planning, experimental, or developmental phase of contractual performance. Procedures furnished by the Con-

1852.223–72

tracting Officer shall be followed in obtaining radio frequency authorization.
(c) This clause, including this paragraph
(c), shall be included in all subcontracts that
call for developing, producing, testing, or operating a device for which a radio frequency
authorization is required.

(End of clause)
1852.223–72 Safety and Health (Short
Form).
As prescribed in 1823.7001(e), insert
the following clause:
SAFETY AND HEALTH (SHORT FORM) (APR
2002)
(a) Safety is the freedom from those conditions that can cause death, injury, occupational illness; damage to or loss of equipment or property, or damage to the environment. NASA’s safety priority is to protect:
(1) The public, (2) astronauts and pilots, (3)
the NASA workforce (including contractor
employees working on NASA contracts), and
(4) high-value equipment and property.
(b) The Contractor shall take all reasonable safety and occupational health measures consistent with standard industry practice in performing this contract. The Contractor shall comply with all Federal, State,
and local laws applicable to safety and occupational health and with the safety and occupational health standards, specifications,
reporting requirements, and any other relevant requirements of this contract.
(c) The Contractor shall take, or cause to
be taken, any other safety, and occupational
health measures the Contracting Officer may
reasonably direct. To the extent that the
Contractor may be entitled to an equitable
adjustment for those measures under the
terms and conditions of this contract, the
equitable adjustment shall be determined
pursuant to the procedures of the Changes
clause of this contract; provided, that no adjustment shall be made under this Safety
and Health clause for any change for which
an equitable adjustment is expressly provided under any other clause of the contract.
(d) The Contracting Officer may notify the
Contractor in writing of any noncompliance
with this clause and specify corrective actions to be taken. In situations where the
Contracting Officer becomes aware of noncompliance that may pose a serious or imminent danger to safety and health of the public, astronauts and pilots, the NASA workforce (including Contractor employees working on NASA contracts), or high value mission critical equipment or property, the Contracting Officer shall notify the Contractor
orally, with written confirmation. The Contractor shall promptly take and report any
necessary corrective action. The Government may pursue appropriate remedies in

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1852.223–73

48 CFR Ch. 18 (10–1–02 Edition)

the event the Contractor fails to promptly
take the necessary corrective action.
(e) The Contractor (or subcontractor or
supplier) shall insert the substance of this
clause, including this paragraph (d) and any
applicable Schedule provisions, with appropriate changes of designations of the parties,
in subcontracts of every tier that exceed the
micro-purchase threshold.

(End of clause)
[66 FR 18052, Apr. 5, 2001, as amended at 67
FR 17017, Apr. 9, 2002]

1852.223–73 Safety and Health Plan.
As prescribed in 1823.7001(c), insert
the following provision:
Safety and Health Plan (April 2002)
(a) The offeror shall submit a detailed safety and occupational health plan as part of its
proposal (see NPG 8715.3, NASA Safety Manual, Appendices). The plan shall include a detailed discussion of the policies, procedures,
and techniques that will be used to ensure
the safety and occupational health of Contractor employees and to ensure the safety
of all working conditions throughout the
performance of the contract.
(b) When applicable, the plan shall address
the policies, procedures, and techniques that
will be used to ensure the safety and occupational health of the public, astronauts and
pilots, the NASA workforce (including Contractor employees working on NASA contracts), and high-value equipment and property.
(c) The plan shall similarly address subcontractor employee safety and occupational
health for those proposed subcontracts that
contain one or more of the following conditions:
(1) The work will be conducted completely
or partly on premises owned or controlled by
the government.
(2) The work includes construction, alteration, or repair of facilities in excess of the
simplified acquisition threshold.
(3) The work, regardless of place of performance, involves hazards that could endanger the public, astronauts and pilots, the
NASA workforce (including Contractor employees working on NASA contracts), or high
value equipment or property, and the hazards are not adequately addressed by Occupational Safety and Health Administration
(OSHA) or Department of Transportation
(DOT) regulations (if applicable).
(4) When the assessed risk and consequences of a failure to properly manage
and control the hazards warrants use of the
clause.
(d) This plan, as approved by the Contracting Officer, will be included in any resulting contract.

(End of provision)

Alternate I (April 2002)
As prescribed in 1823.7001(c), delete
the first sentence in paragraph (a) of
the basic provision and substitute the
following:
The apparent low bidder, upon request by
the Contracting Officer, shall submit a detailed safety and occupational health plan
(see NPG 8715.3, NASA Safety Manual, Appendices). The plan shall be submitted within the time specified by the Contracting Officer. Failure to submit an acceptable plan
shall make the bidder ineligible for the
award of a contract.
[66 FR 48361, Sept. 20, 2001, as amended at 67
FR 17017, Apr. 9, 2002]

1852.223–74 Drug- and alcohol-free
workforce.
As prescribed in 1823.570–3, insert the
following clause:
DRUG- AND ALCOHOL-FREE WORKFORCE (MAR
1996)
(a) Definitions. As used in this clause the
terms ‘‘employee,’’ ‘‘controlled substance,’’
‘‘employee in a sensitive position,’’ and ‘‘use,
in violation of applicable law or Federal regulation, of alcohol’’ are as defined in 48 CFR
1823.570–2.
(b) (1) The Contractor shall institute and
maintain a program for achieving a drugand alcohol-free workforce. As a minimum,
the program shall provide for preemployment, reasonable suspicion, random, post-accident, and periodic recurring (follow-up)
testing of contractor employees in sensitive
positions for use, in violation of applicable
law or Federal regulation, of alcohol or a
controlled substance. The Contractor may
establish its testing or rehabilitation program in cooperation with other contractors
or organizations.
(2) This clause neither prohibits nor requires the Contractor to test employees in a
foreign country. If the Contractor chooses to
conduct such testing, this does not authorize
the Contractor to violate foreign law in conducting such testing.
(3) The Contractor’s program shall test for
the use of marijuana and cocaine. The Contractor’s program may test for the use of
other controlled substances.
(4) The Contractor’s program shall conform
to the ‘‘Mandatory Guidelines for Federal
Workplace Drug Testing Programs’’ published by the Department of Health and
Human Services (59 FR 29908, June 9, 1994)
and the procedures in 49 CFR part 40, ‘‘Procedures for Transportation Workplace Drug
Testing Programs,’’ in which references to
‘‘DOT’’ shall be read as ‘‘NASA’’, and the

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National Aeronautics and Space Administration
split sample method of collection shall be
used.
(c) (1) The Contractor’s program shall provide, where appropriate, for the suspension,
disqualification, or dismissal of any employee in a sensitive position in any instance
where a test conducted and confirmed under
the Contractor’s program indicates that such
individual has used, in violation of applicable law or Federal regulation, alcohol or a
controlled substance.
(2) The Contractor’s program shall further
prohibit any such individual from working in
a sensitive position on a NASA contract, unless such individual has completed a program of rehabilitation described in paragraph (d) of this clause.
(3) The Contractor’s program shall further
prohibit any such individual from working in
any sensitive position on a NASA contract if
the individual is determined under the Contractor’s program to have used, in violation
of applicable law or Federal regulation, alcohol or a controlled substance and the individual meets any of the following criteria:
(i) The individual had undertaken or completed a rehabilitation program described in
paragraph (d) of this clause prior to such use;
(ii) Following such determination, the individual refuses to undertake such a rehabilitation program;
(iii) Following such determination, the individual fails to complete such a rehabilitation program; or
(iv) The individual used a controlled substance or alcohol while on duty.
(d) The Contractor shall institute and
maintain an appropriate rehabilitation program which shall, as a minimum, provide for
the identification and opportunity for treatment of employees whose duties include responsibility for safety-sensitive, security, or
National security functions who are in need
of assistance in resolving problems with the
use of alcohol or controlled substances.
(e) The requirements of this clause shall
take precedence over any state or local Government laws, rules, regulations, ordinances,
standards, or orders that are inconsistent
with the requirements of this clause.
(f) For any collective bargaining agreement, the Contractor will negotiate the
terms of its program with employee representatives, as appropriate, under labor relations laws or negotiated agreements. Such
negotiation, however, cannot change the requirements of this clause. Employees covered under collective bargaining agreements
will not be subject to the requirements of
this clause until those agreements have been
modified, as necessary; provided, however,
that if one year after commencement of negotiation the parties have failed to reach
agreement, an impasse will be determined to
have been reached and the Contractor will
unilaterally implement the requirements of
this clause.

1852.223–75

(g) The Contractor shall insert a clause
containing all the terms of this clause, including this paragraph (g), in all subcontracts in which work is performed by an
employee in a sensitive position, except subcontracts for commercial items (see FAR
parts 2 and 12).

(End of clause)
[61 FR 7226, Feb. 27, 1996]

1852.223–75 Major breach of safety or
security.
As prescribed in 1823.7001(d), insert
the following clause:
MAJOR BREACH OF SAFETY OR SECURITY (FEB
2002)
(a) Safety is the freedom from those conditions that can cause death, injury, occupational illness, damage to or loss of equipment or property, or damage to the environment. Safety is essential to NASA and is a
material part of this contract. NASA’s safety priority is to protect: (1) The public; (2)
astronauts and pilots; (3) the NASA workforce (including contractor employees working on NASA contracts); and (4) high-value
equipment and property. A major breach of
safety may constitute a breach of contract
that entitles the Government to exercise any
of its rights and remedies applicable to material parts of this contract, including termination for default. A major breach of safety
must be related directly to the work on the
contract. A major breach of safety is an act
or omission of the Contractor that consists
of an accident, incident, or exposure resulting in a fatality or mission failure; or in
damage to equipment or property equal to or
greater than $1 million; or in any ‘‘willful’’
or ‘‘repeat’’ violation cited by the Occupational Safety and Health Administration
(OSHA) or by a state agency operating under
an OSHA approved plan.
(b) Security is the condition of safeguarding against espionage, sabotage, crime
(including computer crime), or attack. A
major breach of security may constitute a
breach of contract that entitles the Government to exercise any of its rights and remedies applicable to material parts of this
contract, including termination for default.
A major breach of security may occur on or
off Government installations, but must be
related directly to the work on the contract.
A major breach of security is an act or omission by the Contractor that results in compromise of classified information, illegal
technology transfer, workplace violence resulting in criminal conviction, sabotage,
compromise or denial of information technology services, equipment or property damage from vandalism greater than $250,000, or
theft greater than $250,000.

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1852.225–8

48 CFR Ch. 18 (10–1–02 Edition)

(c) In the event of a major breach of safety
or security, the Contractor shall report the
breach to the Contracting Officer. If directed
by the Contracting Officer, the Contractor
shall conduct its own investigation and report the results to the Government. The
Contractor shall cooperate with the Government investigation, if conducted.

(End of clause)
[65 FR 37061, June 13, 2000, as amended at 65
FR 70316, Nov. 22, 2000; 66 FR 18053, Apr. 5,
2001; 67 FR 7618, Feb. 20, 2002]

1852.225–8
ticles.

Duty-free entry of space ar-

As prescribed in 1825.1101(e), add the
following paragraph (k) to the basic
clause at FAR 52.225–8:
(k) The following supplies will be given
duty-free entry:
[Insert the supplies that are to be accorded
duty-free entry.]

(End of addition)
[65 FR 10033, Feb. 25, 2000]

1852.225–70

Export Licenses.

As prescribed in 1825.1103–70(b), insert
the following clause:
EXPORT LICENSES (FEB 2000)
(a) The Contractor shall comply with all
U.S. export control laws and regulations, including the International Traffic in Arms
Regulations (ITAR), 22 CFR Parts 120–130,
and the Export Administration Regulations
(EAR), 15 CFR Parts 730–799, in the performance of this contract. In the absence of available license exemptions/exceptions, the Contractor shall be responsible for obtaining the
appropriate licenses or other approvals, if required, for exports of hardware, technical
data, and software, or for the provision of
technical assistance.
(b) The Contractor shall be responsible for
obtaining export licenses, if required, before
utilizing foreign persons in the performance
of this contract, including instances where
the work is to be performed on-site at [insert
name of NASA installation], where the foreign person will have access to export-controlled technical data or software.
(c) The Contractor shall be responsible for
all regulatory record keeping requirements
associated with the use of licenses and license exemptions/exceptions.
(d) The Contractor shall be responsible for
ensuring that the provisions of this clause
apply to its subcontractors.

(End of clause)
Alternate I (FEB 2000) As prescribed
in 1825.1103–70(b), add the following
paragraph (e) as Alternate I to the
clause:
(e) The Contractor may request, in writing,
that the Contracting Officer authorizes it to
export
ITAR-controlled
technical
data
(including software) pursuant to the exemption at 22 CFR 125.4(b)(3). The Contracting
Officer or designated representative may authorize or direct the use of the exemption
where the data does not disclose details of
the design, development, production, or
manufacture of any defense article.
[65 FR 6916, Feb. 11, 2000, as amended at 65
FR 10033, Feb. 25, 2000]

1852.225–72

[Reserved]

1852.227–11 Patent Rights—Retention
by the Contractor (Short Form).
As prescribed at 1827.303–70(a), modify
the clause at FAR 52.227–11 by adding
the following subparagraph (5) to paragraph (c) of the basic clause; adding the
following subparagraph (5) to paragraph (f); and using the following subparagraph (2) in lieu of subparagraph
(g)(2) of the basic clause:
(c)(5) The Contractor may use whatever
format is convenient to disclose subject inventions required in subparagraph (c)(1).
NASA prefers that the contractor use either
the electronic or paper version of NASA
Form 1679, Disclosure of Invention and New
Technology (Including Software) to disclose
subject inventions. Both the electronic and
paper versions of NASA Form 1679 may be
accessed at the electronic New Technology
Reporting Web site http://invention.nasa.gov.
(End of addition)
(f)(5) The Contractor shall provide the Contracting Officer the following:
(i) A listing every 12 months (or such
longer period as the Contracting Officer may
specify) from the date of the contract, of all
subject inventions required to be disclosed
during the period.
(ii) A final report prior to closeout of the
contract listing all subject inventions or certifying that there were none.
(iii) Upon request, the filing date, serial
number and title, a copy of the patent application, and patent number and issue date for
any subject invention in any country in
which the contractor has applied for patents.
(iv) An irrevocable power to inspect and
make copies of the patent application file,
by the Government, when a Federal Government employee is a coinventor.
(End of addition)

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National Aeronautics and Space Administration
(g)(2) The Contractor shall include the
clause in the NASA FAR Supplement at
1852.227–70, New Technology, suitably modified to identify the parties, in all subcontracts, regardless of tier, for experimental, developmental, research, design, or
engineering work to be performed by other
than a small business firm or nonprofit organization.
(End of substitution)
[67 FR 30604, May 7, 2002]

1852.227–14

Rights in data—General.

As prescribed in 1827.409(a), add the
following subparagraph (3) to paragraph (d) of the basic clause at FAR
52.227–14:
(3)(i) The Contractor agrees not to establish claims to copyright, publish or release
to others any computer software first produced in the performance of this contract
without the Contracting Officer’s prior written permission.
(ii) If the Government desires to obtain
copyright in computer software first produced in the performance of this contract
and permission has not been granted as set
forth in paragraph (d)(3)(i) of this clause, the
Contracting Officer may direct the contractor to assert, or authorize the assertion
of, claim to copyright in such data and to assign, or obtain the assignment of, such copyright to the Government or its designated
assignee.
(iii) Whenever the word ‘‘establish’’ is used
in this clause, with reference to a claim to
copyright, it shall be construed to mean
‘‘assert’’.

[55 FR 27089, June 29, 1990, as amended at 60
FR 47312, Sept. 12, 1995; 62 FR 36734, July 9,
1997]

Rights

in

1852.227–19 Commercial
computer
software—Restricted rights.
(a) As prescribed in 1827.409(k)(i), add
the following paragraph (e) to the basic
clause at FAR 52.227–19:
(e) For the purposes of receiving updates,
correction notices, consultation information, or other similar information regarding
any computer software delivered under this
contract/purchase order, the NASA Contracting Officer or the NASA Contracting Officer’s Technical Representative/User may
sign any vendor supplied agreements, registration forms, or cards and return them directly to the vendor; however, such signing
shall not alter any of the rights or obligations of either NASA or the vendor set forth
in this clause or elsewhere in this contract/
purchase order.

(End of addition)
(b) As prescribed in 1827.409(k)(ii), add
the following paragraph (f) to the basic
clause at FAR 52.227–19:
(f) Subject to paragraphs (a) through (e)
above, those applicable portions of the Contractor’s standard commercial license or
lease agreement pertaining to any computer
software delivered under this purchase order/
contract that are consistent with Federal
laws, standard industry practices, and the
Federal Acquisition Regulation (FAR) shall
be incorporated into and made part of this
purchase order/contract.

(End of addition)
[55 FR 27090, June 29, 1990, as amended at 55
FR 47480, Nov. 14, 1990; 55 FR 53153, Dec. 27,
1990; 62 FR 36734, July 9, 1997]

(End of addition)

1852.227–17
works.

1852.227–70

data—Special

1852.227–70

New technology.

As prescribed in 1827.303–70(b), insert
the following clause:
NEW TECHNOLOGY (NOV 1998)

As prescribed in 1827.409(i), add the
following paragraph (f) to the basic
clause at FAR 52.227–17:
(f) Whenever the words ‘‘establish’’ and
‘‘establishment’’ are used in this clause, with
reference to a claim to copyright, they shall
be construed to mean ‘‘assert’’ and
‘‘assertion’’, respectively.

(End of addition)
[60 FR 47312, Sept. 12, 1995. Redesignated at
61 FR 5315, Feb. 12, 1996, as amended at 62 FR
36734, July 9, 1997]

(a) Definitions.
Administrator, as used in this clause, means
the Administrator of the National Aeronautics and Space Administration (NASA) or
duly authorized representative.
Contract, as used in this clause, means any
actual or proposed contract, agreement, understanding, or other arrangement, and includes any assignment, substitution of parties, or subcontract executed or entered into
thereunder.
Made, as used in this clause, means conception or first actual reduction to practice;
provided, that in the case of a variety of
plant, the date of determination (as defined

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1852.227–70

48 CFR Ch. 18 (10–1–02 Edition)

in section 41(d) of the Plant Variety Protection Act, 7 U.S.C. 2401(d)) must also occur
during the period of contract performance.
Nonprofit organization, as used in this
clause, means a domestic university or other
institution of higher education or an organization of the type described in section
501(c)(3) of the Internal Revenue Code of 1954
(26 U.S.C. 501(c)) and exempt from taxation
under section 501(a) of the Internal Revenue
Code (26 U.S.C. 501(a)), or any domestic nonprofit scientific or educational organization
qualified under a State nonprofit organization statute.
Practical application, as used in this clause,
means to manufacture, in the case of a composition or product; to practice, in the case
of a process or method; or to operate, in case
of a machine or system; and, in each case,
under such conditions as to establish that
the invention is being utilized and that its
benefits are, to the extent permitted by law
or Government regulations, available to the
public on reasonable terms.
Reportable item, as used in this clause,
means any invention, discovery, improvement, or innovation of the contractor,
whether or not patentable or otherwise
protectible under Title 35 of the United
States Code, made in the performance of any
work under any NASA contract or in the performance of any work that is reimbursable
under any clause in any NASA contract providing for reimbursement of costs incurred
before the effective date of the contract. Reportable items include, but are not limited
to, new processes, machines, manufactures,
and compositions of matter, and improvements to, or new applications of, existing
processes, machines, manufactures, and compositions of matter. Reportable items also
include new computer programs, and improvements to, or new applications of, existing computer programs, whether or not
copyrightable or otherwise protectible under
Title 17 of the United States Code.
Small business firm, as used in this clause,
means a domestic small business concern as
defined at 15 U.S.C. 632 and implementing
regulations of the Administrator of the
Small Business Administration. (For the
purpose of this definition, the size standard
contained in 13 CFR 121.3–8 for small business contractors and in 13 CFR 121.3–12 for
small business subcontractors will be used.)
Subject invention, as used in this clause,
means any reportable item which is or may
be patentable or otherwise protectible under
Title 35 of the United States Code, or any
novel variety of plant that is or may be
protectible under the Plant Variety Protection Act (7 U.S.C. 2321, et seq.).
(b) Allocation of principal rights—(1)
Presumption of title. (i) Any reportable item
that the Administrator considers to be a subject invention shall be presumed to have
been made in the manner specified in para-

graph (1) or (2) of section 305(a) of the National Aeronautics and Space Act of 1958 (42
U.S.C. 2457(a)) (hereinafter called ‘‘the Act’’),
and the above presumption shall be conclusive unless at the time of reporting the reportable item the Contractor submits to the
Contracting Officer a written statement,
containing
supporting
details,
demonstrating that the reportable item was not
made in the manner specified in paragraph
(1) or (2) of section 305(a) of the Act.
(ii) Regardless of whether title to a given
subject invention would otherwise be subject
to an advance waiver or is the subject of a
petition for waiver, the Contractor may nevertheless file the statement described in
paragraph (b)(1)(i) of this clause. The Administrator will review the information furnished by the Contractor in any such statement and any other available information
relating to the circumstances surrounding
the making of the subject invention and will
notify the Contractor whether the Administrator has determined that the subject invention was made in the manner specified in
paragraph (1) or (2) of section 305(a) of the
Act.
(2) Property rights in subject inventions. Each
subject invention for which the presumption
of paragraph (b)(1)(i) of this clause is conclusive or for which there has been a determination that it was made in the manner specified in paragraph (1) or (2) of section 305(a) of
the Act shall be the exclusive property of the
United States as represented by NASA unless the Administrator waives all or any part
of the rights of the United States, as provided in paragraph (b)(3) of this clause.
(3) Waiver of rights. (i) Section 305(f) of the
Act provides for the promulgation of regulations by which the Administrator may waive
the rights of the United States with respect
to any invention or class of inventions made
or that may be made under conditions specified in paragraph (1) or (2) of section 305(a) of
the Act. The promulgated NASA Patent
Waiver Regulations, 14 CFR part 1245, subpart 1, have adopted the Presidential Memorandum on Government Patent Policy of
February 18, 1983, as a guide in acting on petitions (requests) for such waiver of rights.
(ii) As provided in 14 CFR part 1245, subpart 1, Contractors may petition, either
prior to execution of the contract or within
30 days after execution of the contract, for
advance waiver of rights to any or all of the
inventions that may be made under a contract. If such a petition is not submitted, or
if after submission it is denied, the Contractor (or an employee inventor of the Contractor) may petition for waiver of rights to
an identified subject invention within eight
months of first disclosure of invention in accordance with paragraph (e)(2) of this clause,
or within such longer period as may be authorized in accordance with 14 CFR 1245.105.

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National Aeronautics and Space Administration
(c) Minimum rights reserved by the Government. (1) With respect to each subject invention for which a waiver of rights is applicable in accordance with 14 CFR part 1245, subpart 1, the Government reserves—
(i) An irrevocable, nonexclusive, nontransferable, royalty-free license for the
practice of such invention throughout the
world by or on behalf of the United States or
any foreign government in accordance with
any treaty or agreement with the United
States; and
(ii) Such other rights as stated in 14 CFR
1245.107.
(2) Nothing contained in this paragraph (c)
shall be considered to grant to the Government any rights with respect to any invention other than a subject invention.
(d) Minimum rights to the Contractor. (1) The
Contractor is hereby granted a revocable,
nonexclusive, royalty-free license in each
patent application filed in any country on a
subject invention and any resulting patent
in which the Government acquires title, unless the Contractor fails to disclose the subject invention within the times specified in
paragraph (e)(2) of this clause. The Contractor’s license extends to its domestic subsidiaries and affiliates, if any, within the corporate structure of which the Contractor is a
party and includes the right to grant sublicenses of the same scope to the extent the
Contractor was legally obligated to do so at
the time the contract was awarded. The license is transferable only with the approval
of the Administrator except when transferred to the successor of that part of the
Contractor’s business to which the invention
pertains.
(2) The Contractor’s domestic license may
be revoked or modified by the Administrator
to the extent necessary to achieve expeditious practical application of the subject invention pursuant to an application for an exclusive license submitted in accordance with
37 CFR part 404, Licensing of Government
Owned Inventions. This license will not be
revoked in that field of use or the geographical areas in which the Contractor has
achieved practical application and continues
to make the benefits of the invention reasonably accessible to the public. The license in
any foreign country may be revoked or modified at the discretion of the Administrator to
the extent the Contractor, its licensees, or
its domestic subsidiaries or affiliates have
failed to achieve practical application in
that foreign country.
(3) Before revocation or modification of the
license, the Contractor will be provided a
written notice of the Administrator’s intention to revoke or modify the license, and the
Contractor will be allowed 30 days (or such
other time as may be authorized by the Administrator for good cause shown by the
Contractor) after the notice to show cause
why the license should not be revoked or

1852.227–70

modified. The Contractor has the right to appeal to the Administrator any decision concerning the revocation or modification of its
license.
(e) Invention identification, disclosures, and
reports. (1) The Contractor shall establish
and maintain active and effective procedures
to assure that reportable items are promptly
identified and disclosed to Contractor personnel responsible for the administration of
this New Technology clause within six
months of conception and/or first actual reduction to practice, whichever occurs first in
the performance of work under this contract.
These procedures shall include the maintenance of laboratory notebooks or equivalent
records and other records as are reasonably
necessary to document the conception and/or
the first actual reduction to practice of the
reportable items, and records that show that
the procedures for identifying and disclosing
reportable items are followed. Upon request,
the Contractor shall furnish the Contracting
Officer a description of such procedures for
evaluation and for determination as to their
effectiveness.
(2) The Contractor will disclose each reportable item to the Contracting Officer
within two months after the inventor discloses it in writing to Contractor personnel
responsible for the administration of this
New Technology clause or, if earlier, within
six months after the Contractor becomes
aware that a reportable item has been made,
but in any event for subject inventions before any on sale, public use, or publication of
such invention known to the Contractor. The
disclosure to the agency shall be in the form
of a written report and shall identify the
contract under which the reportable item
was made and the inventor(s) or innovator(s). It shall be sufficiently complete in
technical detail to convey a clear understanding, to the extent known at the time of
the disclosure, of the nature, purpose, operation, and physical, chemical, biological, or
electrical characteristics of the reportable
item. The disclosure shall also identify any
publication, on sale, or public use of any subject invention and whether a manuscript describing such invention has been submitted
for publication and, if so, whether it has
been accepted for publication at the time of
disclosure. In addition, after disclosure to
the agency, the Contractor will promptly notify the agency of the acceptance of any
manuscript describing a subject invention
for publication or of any on sale or public
use planned by the Contractor for such invention.
(3) The Contractor may use whatever format is convenient to disclose reportable
items required in subparagraph (e)(2). NASA
prefers that the Contractor use either the
electronic or paper version of NASA Form

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1852.227–70

48 CFR Ch. 18 (10–1–02 Edition)

1679, Disclosure of Invention and New Technology (Including Software) to disclose reportable items. Both the electronic and
paper versions of NASA Form 1679 may be
accessed at the electronic New Technology
Reporting Web site http://invention.nasa.gov.
(4) The Contractor shall furnish the Contracting Officer the following:
(i) Interim reports every 12 months (or
such longer period as may be specified by the
Contracting Officer) from the date of the
contract, listing reportable items during
that period, and certifying that all reportable items have been disclosed (or that there
are no such inventions) and that the procedures required by paragraph (e)(1) of this
clause have been followed.
(ii) A final report, within 3 months after
completion of the contracted work, listing
all reportable items or certifying that there
were no such reportable items, and listing all
subcontracts at any tier containing a patent
rights clause or certifying that there were no
such subcontracts.
(5) The Contractor agrees, upon written request of the Contracting Officer, to furnish
additional technical and other information
available to the Contractor as is necessary
for the preparation of a patent application
on a subject invention and for the prosecution of the patent application, and to execute all papers necessary to file patent applications on subject inventions and to establish the Government’s rights in the subject
inventions.
(6) The Contractor agrees, subject to section 27.302(i), of the Federal Acquisition Regulation (FAR), that the Government may duplicate and disclose subject invention disclosures and all other reports and papers furnished or required to be furnished pursuant
to this clause.
(f) Examination of records relating to inventions. (1) The Contracting Officer or any
authorized representative shall, until 3 years
after final payment under this contract,
have the right to examine any books
(including laboratory notebooks), records,
and documents of the Contractor relating to
the conception or first actual reduction to
practice of inventions in the same field of
technology as the work under this contract
to determine whether—
(i) Any such inventions are subject inventions;
(ii) The Contractor has established and
maintained the procedures required by paragraph (e)(1) of this clause; and
(iii) The Contractor and its inventors have
complied with the procedures.
(2) If the Contracting Officer learns of an
unreported Contractor invention that the
Contracting Officer believes may be a subject invention, the Contractor may be required to disclose the invention to the agency for a determination of ownership rights.

(3) Any examination of records under this
paragraph will be subject to appropriate conditions to protect the confidentiality of the
information involved.
(g) Withholding of payment (this paragraph
does not apply to subcontracts). (1) Any time
before final payment under this contract, the
Contracting Officer may, in the Government’s interest, withhold payment until a
reserve not exceeding $50,000 or 5 percent of
the amount of this contract, whichever is
less, shall have been set aside if, in the Contracting Officer’s opinion, the Contractor
fails to—
(i) Establish, maintain, and follow effective procedures for identifying and disclosing
reportable items pursuant to paragraph (e)(1)
of this clause;
(ii) Disclose any reportable items pursuant
to paragraph (e)(2) of this clause;
(iii) Deliver acceptable interim reports
pursuant to paragraph (e)(3)(i) of this clause;
or
(iv) Provide the information regarding subcontracts pursuant to paragraph (h)(4) of
this clause.
(2) Such reserve or balance shall be withheld until the Contracting Officer has determined that the Contractor has rectified
whatever deficiencies exist and has delivered
all reports, disclosures, and other information required by this clause.
(3) Final payment under this contract shall
not be made before the Contractor delivers
to the Contracting Officer all disclosures of
reportable items required by paragraph (e)(2)
of this clause, and an acceptable final report
pursuant to paragraph (e)(3)(ii) of this
clause.
(4) The Contracting Officer may decrease
or increase the sums withheld up to the maximum authorized above. No amount shall be
withheld under this paragraph while the
amount specified by this paragraph is being
withheld under other provisions of the contract. The withholding of any amount or the
subsequent payment thereof shall not be
construed as a waiver of any Government
rights.
(h) Subcontracts. (1) Unless otherwise authorized or directed by the Contracting Officer, the Contractor shall—
(i) Include this clause (suitably modified to
identify the parties) in any subcontract hereunder (regardless of tier) with other than a
small business firm or nonprofit organization for the performance of experimental, developmental, or research work; and
(ii) Include the clause at FAR 52.227–11
(suitably modified to identify the parties) in
any subcontract hereunder (regardless of
tier) with a small business firm or nonprofit
organization for the performance of experimental, developmental, or research work.
(2) In the event of a refusal by a prospective subcontractor to accept such a clause
the Contractor—

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National Aeronautics and Space Administration
(i) Shall promptly submit a written notice
to the Contracting Officer setting forth the
subcontractor’s reasons for such refusal and
other pertinent information that may expedite disposition of the matter; and
(ii) Shall not proceed with such subcontract without the written authorization
of the Contracting Officer.
(3) In the case of subcontracts at any tier,
the agency, subcontractor, and Contractor
agree that the mutual obligations of the parties created by this clause constitute a contract between the subcontractor and NASA
with respect to those matters covered by
this clause.
(4) The Contractor shall promptly notify
the Contracting Officer in writing upon the
award of any subcontract at any tier containing a patent rights clause by identifying
the subcontractor, the applicable patent
rights clause, the work to be performed
under the subcontract, and the dates of
award and estimated completion. Upon request of the Contracting Officer, the Contractor shall furnish a copy of such subcontract, and, no more frequently than annually, a listing of the subcontracts that
have been awarded.
(5) The subcontractor will retain all rights
provided for the Contractor in the clause of
paragraph (h)(1)(i) or (ii) of this clause,
whichever is included in the subcontract,
and the Contractor will not, as part of the
consideration for awarding the subcontract,
obtain rights in the subcontractor’s subject
inventions.
(i) Preference for United States industry.
Unless provided otherwise, no Contractor
that receives title to any subject invention
and no assignee of any such Contractor shall
grant to any person the exclusive right to
use or sell any subject invention in the
United States unless such person agrees that
any products embodying the subject invention will be manufactured substantially in
the United States. However, in individual
cases, the requirement may be waived by the
Administrator upon a showing by the Contractor or assignee that reasonable but unsuccessful efforts have been made to grant licenses on similar terms to potential licensees that would be likely to manufacture substantially in the United States or that under
the circumstances domestic manufacture is
not commercially feasible.

(End of clause)
[54 FR 28340, July 5, 1989, as amended at 54
FR 53631, Dec. 29, 1989; 60 FR 40521, Aug. 9,
1995; 62 FR 36734, July 9, 1997; 63 FR 63209,
Nov. 12, 1998; 67 FR 30604, May 7, 2002]

1852.227–71

1852.227–71 Requests for waiver of
rights to inventions.
As prescribed in 1827.30–70(c), insert
the following provision in all solicitations that include the clause at
1852.227–70, New Technology:
REQUESTS FOR WAIVER OF RIGHTS TO
INVENTIONS (APR 1984)
(a) In accordance with the NASA Patent
Waiver Regulations, 14 CFR part 1245, subpart 1, waiver of rights to any or all inventions made or that may be made under a
NASA contract or subcontract with other
than a small business firm or a domestic
nonprofit organization may be requested at
different time periods. Advance waiver of
rights to any or all inventions that may be
made under a contract or subcontract may
be requested prior to the execution of the
contract or subcontract, or within 30 days
after execution by the selected contractor.
In addition, waiver of rights to an identified
invention made and reported under a contract or subcontract may be requested, even
though a request for an advance waiver was
not made or, if made, was not granted.
(b) Each request for waiver of rights shall
be by petition to the Administrator and shall
include an identification of the petitioner;
place of business and address; if petitioner is
represented by counsel, the name, address
and telephone number of the counsel; the
signature of the petitioner or authorized representative; and the date of signature. No
specific forms need be used, but the request
should contain a positive statement that
waiver of rights is being requested under the
NASA Patent Waiver Regulations; a clear indication of whether the request is for an advance waiver or for a waiver of rights for an
individual identified invention; whether foreign rights are also requested and, if so, the
countries, and a citation of the specific section or sections of the regulations under
which such rights are requested; and the
name, address, and telephone number of the
party with whom to communicate when the
request is acted upon. Requests for advance
waiver of rights should, preferably, be included with the proposal, but in any event in
advance of negotiations.
(c) Petitions for advance waiver, prior to
contract execution, must be submitted to
the Contracting Officer. All other petitions
will be submitted to the Patent Representative designated in the contract.
(d) Petitions submitted with proposals selected for negotiation of a contract will be
forwarded by the Contracting Officer to the
installation Patent Counsel for processing
and then to the Inventions and Contributions
Board. The Board will consider these petitions and where the Board makes the findings to support the waiver, the Board will

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1852.227–72

48 CFR Ch. 18 (10–1–02 Edition)

recommend to the Administrator that waiver be granted, and will notify the petitioner
and the Contracting Officer of the Administrator’s determination. The Contracting Officer will be informed by the Board whenever
there is insufficient time or information or
other reasons to permit a decision to be
made without unduly delaying the execution
of the contract. In the latter event, the petitioner will be so notified by the Contracting
Officer. All other petitions will be processed
by installation Patent Counsel and forwarded to the Board. The Board shall notify
the petitioner of its action and if waiver is
granted, the conditions, reservations, and
obligations thereof will be included in the
Instrument of Waiver. Whenever the Board
notifies a petitioner of a recommendation
adverse to, or different from, the waiver requested, the petitioner may request reconsideration under procedures set forth in the
Regulations.

(End of provision)
[54 FR 28340, July 5, 1989, as amended at 62
FR 36734, July 9, 1997]

1852.227–72 Designation of new technology representative and patent
representative.
As prescribed in 1827.303–70(d), insert
the following clause:
DESIGNATION

OF NEW TECHNOLOGY REPRESENTATIVE AND PATENT REPRESENTATIVE

(JUL 1997)
(a) For purposes of administration of the
clause of this contract entitled ‘‘New Technology’’ or ‘‘Patent Rights—Retention by
the Contractor (Short Form),’’ whichever is
included, the following named representatives are hereby designated by the Contracting Officer to administer such clause:
Title

Address
(including
zip code)

Office code
New Technology Representative
Patent Representative

(b) Reports of reportable items, and disclosure of subject inventions, interim reports,
final reports, utilization reports, and other
reports required by the clause, as well as any
correspondence with respect to such matters,
should be directed to the New Technology
Representative unless transmitted in response to correspondence or request from the
Patent Representative. Inquiries or requests
regarding disposition of rights, election of
rights, or related matters should be directed
to the Patent Representative. This clause
shall be included in any subcontract hereunder requiring a ‘‘New Technology’’ clause
or ‘‘Patent Rights—Retention by the Con-

tractor (Short Form)’’ clause, unless otherwise authorized or directed by the Contracting Officer. The respective responsibilities and authorities of the above-named representatives are set forth in 1827.305–370 of
the NASA FAR Supplement.

(End of clause)
[54 FR 28340, July 5, 1989, as amended at 62
FR 36734, July 9, 1997; 62 FR 40309, July 28,
1997]

1852.227–84

Patent rights clauses.

The contracting officer shall insert
the following provision as prescribed in
1827.303–70(e):
PATENT RIGHTS CLAUSES (DEC 1989)
This solicitation contains the patent
rights clauses of FAR 52.227–11 (as modified
by the NFS) and NFS 1852.227–70. If the contract resulting from this solicitation is
awarded to a small business or nonprofit organization, the clause at NFS 1852.227–70
shall not apply. If the award is to other than
a small business or nonprofit organization,
the clause at FAR 52.227–11 shall not apply.

(End of Provision)
[54 FR 53631, Dec. 29, 1989, as amended at 62
FR 36735, July 9, 1997]

1852.227–85 Invention
rights—Foreign.

reporting

As prescribed in 1827.303–70(f), insert
the following clause:
INVENTION REPORTING AND RIGHTS—FOREIGN
(APR 1986)
(a) As used in this clause, the term
‘‘invention’’ means any invention, discovery
or improvement, and ‘‘made’’ means the conception or first actual demonstration that
the invention is useful and operable.
(b) The Contractor shall report promptly
to the Contracting Officer each invention
made in the performance of work under this
contract. The report of each such invention
shall:
(1) Identify the inventor(s) by full name;
and
(2) Include such full and complete technical information concerning the invention
as is necessary to enable an understanding of
the nature and operation thereof.
(c) The Contractor hereby grants to the
Government of the United States of America
as represented by the Administrator of the
National Aeronautics and Space Administration the full right, title and interest in and
to each such invention throughout the

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National Aeronautics and Space Administration
world, except for the State in which this contract is to be performed. As to such State,
Contractor hereby grants to the Government
of the United States of America as represented by the Administrator of the National Aeronautics and Space Administration only an irrevocable, nontransferable,
nonexclusive, royalty-free license to practice
each such invention by or on behalf of the
United States of America or any foreign government pursuant to any treaty or agreement with the United States of America,
provided that Contractor within a reasonable
time files a patent application in that State
for each such invention. Where Contractor
does not elect to file such patent application
for any such invention in that State, full
right, title and interest in and to such invention in that State shall reside in the Government of the United States of America as represented by the Administrator of the National Aeronautics and Space Administration.
(d) The Contractor agrees to execute or to
secure the execution of such legal instruments as may be necessary to confirm and to
protect the rights granted by paragraph (c)
of this clause, including papers incident to
the filing and prosecution of patent applications.
(e) Upon completion of the contract work,
and prior to final payment, Contractor shall
submit to the Contracting Officer a final report listing all inventions reportable under
this contract or certifying that no such inventions have been made.
(f) In each subcontract, the Contractor
awards under this contract where the performance of research, experimental design,
engineering, or developmental work is contemplated, the Contractor shall include this
clause and the name and address of the Contracting Officer.

(End of clause)
[54 FR 28340, July 5, 1989, as amended at 62
FR 36735, July 9, 1997]

1852.227–86 Commercial
computer
software—Licensing.
As prescribed in 1827.409–70, insert the
following clause:
COMMERCIAL COMPUTER SOFTWARE—
LICENSING (DEC 1987)
(a) Any delivered commercial computer
software (including documentation thereof)
developed at private expense and claimed as
proprietary shall be subject to the restricted
rights in paragraph (d) of this clause. Where
the vendor/contractor proposes its standard
commercial software license, those applicable portions thereof consistent with Federal
laws, standard industry practices, the Federal Acquisition Regulations (FAR) and the

1852.227–86

NASA FAR Supplement, including the restricted rights in paragraph (d) of this
clause, are incorporated into and made a
part of this purchase order/contract.
(b) Although the vendor/contractor may
not propose its standard commercial software license until after this purchase order/
contract has been issued, or at or after the
time the computer software is delivered,
such license shall nevertheless be deemed incorporated into and made a part of this purchase order/contract under the same terms
and conditions as in paragraph (a) of this
clause. For purposes of receiving updates,
correction notices, consultation, and similar
activities on the computer software, the
NASA Contracting Officer or the NASA Contracting Officer’s Technical Representative/
User may sign any agreement, license, or
registration form or card and return it directly to the vendor/contractor; however,
such signing shall not alter any of the terms
and conditions of this clause.
(c) The vendor’s/contractor’s acceptance is
expressly limited to the terms and conditions of this purchase order/contract. If the
specified computer software is shipped or delivered to NASA, it shall be understood that
the vendor/contractor has unconditionally
accepted the terms and conditions set forth
in this clause, and that such terms and conditions (including the incorporated license)
constitute the entire agreement between the
parties concerning rights in the computer
software.
(d) The following restricted rights shall
apply:
(1) The commercial computer software
may not be used, reproduced, or disclosed by
the Government except as provided below or
otherwise expressly stated in the purchase
order/contract.
(2) The commercial computer software
may be—
(i) Used, or copied for use, in or with any
computer owned or leased by, or on behalf of,
the Government; provided, the software is
not used, nor copied for use, in or with more
than one computer simultaneously, unless
otherwise permitted by the license incorporated under paragraph (a) or (b) of this
clause;
(ii) Reproduced for safekeeping (archives)
or backup purposes;
(iii) Modified, adapted, or combined with
other computer software, provided that the
modified, combined, or adapted portions of
the derivative software incorporating restricted computer software shall be subject
to the same restricted rights; and
(iv) Disclosed and reproduced for use by
Government contractors or their subcontractors in accordance with the restricted rights
in paragraphs (d)(2) (i), (ii), and (iii) of this
clause; provided they have the Government’s
permission to use the computer software and
have also agreed to protect the computer

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1852.227–87

48 CFR Ch. 18 (10–1–02 Edition)

software from unauthorized use and disclosure.
(3) If the incorporated vendor’s/contractor’s software license contains provisions or
rights that are less restrictive than the restricted rights in paragraph (d)(2) of this
clause, then the less restrictive provisions or
rights shall prevail.
(4) If the computer software is published,
copyrighted computer software, it is licensed
to the Government, without disclosure prohibitions, with the rights in paragraphs (d)
(2) and (3) of this clause.
(5) The computer software may be marked
with any appropriate proprietary notice that
is consistent with the rights in paragraphs
(d) (2), (3), and (4) of this clause.

End of clause)

which NASA specifically identifies and directs the Contractor to transfer in accordance with paragraph 2 of this clause, and
that all other transfers of technical data to
foreign entities are subject to the requirements of the U.S. export control laws and
regulations.
4. Nothing contained in this clause affects
the allocation of technical data rights between NASA and the Contractor or any subcontractors as set forth in the Rights in
Data clause of this Contract, nor the protection of any proprietary technical data which
may be available to the Contractor or any
subcontractor under that clause.
5. The Contractor agrees to include this
clause, including this paragraph 5, in all subcontracts hereunder, appropriately modified
to reflect the relationship of the parties.

[54 FR 28340, July 5, 1989, as amended at 55
FR 27090, June 29, 1990; 62 FR 36735, July 9,
1997]

1852.227–87 Transfer of technical data
under Space Station International
Agreements.
As prescribed at 1827.670–2, insert the
following clause:
TRANSFER OF TECHNICAL DATA UNDER SPACE
STATION INTERNATIONAL AGREEMENT (APR
1989)
1. In the cooperative Space Station Freedom program, NASA has the authority to
provide to the international partners all information necessary to implement the multilateral Space Station Intergovernmental
Agreement and the Space Station Memoranda of Understanding. NASA is committed
under these Space Station agreements to
provide its international Space Station partners with certain technical data which are
subject to the U.S. export control laws and
regulations. NASA will have obtained any
necessary approvals from the Department of
State for the transfer of any such technical
data. Space Station contractors, acting as
agents of NASA under the specific written
direction of the Contracting Officer, or designated representative, require no other separate approval under the International Traffic in Arms Regulations (ITAR) to transfer
such data.
2. The Contractor agrees, when specifically
directed in writing by the Contracting Officer, or designated representative, to transfer
identified technical data to a named foreign
recipient, in the manner directed. No export
control marking should be affixed to the
data unless so directed. If directed, the text
of the marking to be affixed will be furnished
by the Contracting Officer or designated representative.
3. It should be emphasized that the transfer is limited solely to those technical data

(End of clause)
[54 FR 39375, Sept. 26, 1989]

1852.228–70
risk.

Aircraft ground and flight

As prescribed in 1828.370(a), insert the
following clause. The purpose of this
clause is to have the Government assume risks that generally entail unusually high insurance premiums and are
not covered by the contractor’s contents, work-in-process, and similar insurance. Since the definitions in the
clause may not cover every situation
that should be covered to achieve this
purpose, the clause may be modified as
follows: If the contract covers helicopters, vertical take-off aircraft,
lighter-than-air airships, or other nonconventional types of aircraft, the definition of ‘‘aircraft’’ should be modified
to specify that the aircraft has reached
a point of manufacture comparable to
that specified in the standard definition, which is written for conventional
winged aircraft. The definition of ‘‘in
the open’’ may be modified to include
‘‘hush houses,’’ test hangars, comparable structures, and other designated areas. In addition, clause paragraph (d)(3) may be modified to provide
for Government assumption of risk of
transportation
by
conveyance
on
streets or highways if the contracting
officer determines that this transportation is limited to the vicinity of the
contractor’s premises and is merely incident to work being performed under
the contract.

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National Aeronautics and Space Administration
AIRCRAFT GROUND AND FLIGHT RISK (OCT
1996)
(a) Notwithstanding any other provisions
of this contract, except as may be specifically provided in the Schedule as an exception to this clause, the Government, subject
to the definitions and limitations of this
clause, assumes the risk of damage to, or
loss or destruction of, aircraft in the open,
during operation, or in flight and agrees that
the Contractor shall not be liable to the Government for any such damage, loss, or destruction.
(b) For the purposes of this clause, the following definitions apply:
(1) Unless otherwise specifically provided
in the Schedule, ‘‘aircraft’’ includes—
(i) Aircraft (including both complete aircraft and aircraft in the course of being manufactured, disassembled, or reassembled; provided that an engine, wing, or a portion of a
wing is attached to the fuselage) to be furnished to the Government under this contract (whether before or after Government
acceptance); and
(ii) Aircraft (regardless of whether in a
state of disassembly or reassembly) furnished by the Government to the Contractor
under this contract, including all property
installed in, being installed in, or temporarily removed from them, unless the aircraft and property are covered by a separate
bailment agreement.
(2) ‘‘In the open’’ means located wholly
outside of buildings on the Contractor’s
premises, or at such other places as may be
described in the Schedule as being in the
open for the purposes of this clause, except
that aircraft furnished by the Government
are considered to be in the open at all times
while in the Contractor’s possession, care,
custody, or control.
(3) ‘‘Flight’’ includes any flight demonstration, flight test, taxi test, or other flight
made in the performance of this contract, or
for the purpose of safeguarding the aircraft,
or previously approved in writing by the
Contracting Officer.
(i) With respect to land-based aircraft,
flight commences with the taxi roll from a
flight line on the Contractor’s premises and
continues until the aircraft has completed
the taxi roll in returning to a flight line on
the Contractor’s premises.
(ii) With respect to seaplanes, flight commences with the launching from a ramp on
the Contractor’s premises and continues
until the aircraft has completed its landing
run upon return and is beached at a ramp on
the Contractor’s premises.
(iii) With respect to helicopters, flight
commences upon engagement of the rotors
for the purpose of take-off from the Contractor’s premises and continues until the aircraft has returned to the ground on the Con-

1852.228–70

tractor’s premises and the rotors are disengaged.
(iv) With respect to vertical take-off aircraft, flight commences upon disengagement
from any launching platform or device on
the Contractor’s premises and continues
until the aircraft has been re-engaged to any
launching platform or device on the Contractor’s premises; provided, however, that aircraft off the Contractor’s premises shall be
deemed to be in flight when on the ground or
water only during periods of reasonable duration following emergency landing, other
landings made in the performance of this
contract, or landings approved by the Contracting Officer in writing.
(4) ‘‘Contractor’s premises’’ means those
premises designated as such in the Schedule
or in writing by the Contracting Officer, and
any other place to which aircraft are moved
for the purpose of safeguarding the aircraft.
(5) ‘‘Operation’’ means operations and
tests, other than on any production line, of
aircraft not in flight, whether or not the aircraft is in the open or in motion. It includes
operations and tests of equipment, accessories, and power plants only when installed
in aircraft.
(6) ‘‘Flight crew members’’ means the
pilot, copilot, and, unless otherwise specifically provided in the Schedule, the flight engineer and navigator when requirement or
assigned to their respective crew positions to
conduct any flight on behalf of the Contractor.
(7) ‘‘Contractor’s managerial personnel’’
means the Contractor’s directors, officers,
and any managers, superintendents, or
equivalent representatives who have supervision or direction of all or substantially all
of the Contractor’s business or of the Contractor’s operations at any one plant, a separate location at which this contract is performed, or a separate and complete major industrial operation in connection with the
performance of this contract.
(c)(1) The Government’s assumption of risk
under this clause, as to aircraft in the open,
shall continue in effect unless terminated
pursuant to paragraph (c)(3) of this clause. If
the Contracting Officer finds that an aircraft
is in the open under unreasonable conditions,
the Contracting Officer shall notify the Contractor in writing of the conditions found to
be unreasonable and require the Contractor
to correct them within a reasonable time.
(2) Upon receipt of this notice, the Contractor shall act promptly to correct these
conditions, regardless of whether it agrees
that they are in fact unreasonable. To the
extent that the Contracting Officer may
later determine that they were not in fact
unreasonable, an equitable adjustment shall
be made in the contract price to compensate
the Contractor for any additional costs incurred in correcting them, and the contract
shall be modified in writing accordingly.

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1852.228–70

48 CFR Ch. 18 (10–1–02 Edition)

(3)(i) If the Contracting Officer finds that
the Contractor has failed to act promptly to
correct unreasonable conditions or has failed
to correct them within a reasonable time,
the Contracting Officer may by written notice terminate the Government’s assumption
of risk under this clause for any aircraft
which is in the open under those conditions.
This termination shall be effective at 12:01
A.M. on the 15th day following the day of receipt by the Contractor of the notice.
(ii) If the Contracting Officer later determines that the Contractor acted promptly to
correct the conditions or that the time
taken by the Contractor was not in fact unreasonable, an equitable adjustment shall,
notwithstanding paragraph (g) of this clause,
be made to compensate the Contractor for
any additional costs incurred as a result of
the termination, and the contract shall be
modified in writing accordingly.
(4) If the Government’s assumption of risk
under this clause is terminated in accordance with paragraph (c)(3) of this clause, the
risk of loss with respect to Government-furnished property shall be determined in accordance with the Government property
clause of this contract, if any, until the Government’s assumption of risk is reinstated in
accordance with paragraph (c)(5) of this
clause.
(5)(i) When unreasonable conditions have
been corrected, the Contractor shall promptly notify the Government. The Government
may or may not elect to reassume the risks
and relieve the Contractor of liabilities as
provided in this clause, and the Contracting
Officer shall notify the Contractor of the
Government’s election.
(ii) If, after correction of the conditions,
the Government elects to reassume the risks
and relieve the Contractor of liabilities, the
Contractor shall be entitled to an equitable
adjustment for any costs of insurance extending from the end of the third working
day after the Contractor notifies the Government of the correction until the Government
notifies the Contractor of that election.
(iii) If the Government elects not to reassume the risks and the conditions have in
fact been corrected, the Contractor shall be
entitled to an equitable adjustment for any
costs of insurance extending after the third
working day referred to in paragraph
(c)(5)(ii) of this clause.
(d) The Government’s assumption of risk
shall not extend to damage to, or loss or destruction of aircraft—
(1) Resulting from failure of the Contractor, due to willful misconduct or lack of
good faith of any of the Contractor’s managerial personnel, to maintain and administer
a program for protecting and preserving aircraft in the open and during operation, in accordance with sound industrial practice;
(2) Sustained during flight if the flight
crew members conducting the flight have not

been approved in writing by the Contracting
Officer;
(3) While in the course of transportation by
rail or by conveyance on public streets, highways, or waterways, except for Governmentfurnished property;
(4) The extent that the damage, loss, or destruction is in fact covered by insurance;
(5) Consisting of wear and tear, deterioration (including rust and corrosion), freezing,
or mechanical, structural, or electrical
breakdown or failure, unless this damage is
the result of other loss, damage, or destruction covered by this clause (except that, in
the case of Government-furnished property,
if the damage consists of reasonable wear
and tear or deterioration or results from an
inherent defect in such property, this exclusion shall not apply); or
(6) Sustained while the aircraft is being
worked upon and directly resulting from the
work, including but not limited to any repairing, adjusting, servicing, or maintenance
operation, unless the damage, loss, or destruction is of a type that would be covered
by insurance that would customarily have
been maintained by the Contractor at the
time of the damage, loss, or destruction, but
for the Government’s assumption of risk
under this clause.
(e)(1) With the exception of damage to, or
loss or destruction of, aircraft in flight, the
Government’s assumption of risk under this
clause shall not extend to the first $1,000 of
loss or damage resulting from each separately occurring event. The Contractor assumes the risk of and shall be responsible for
the first $1,000 of loss of or damage to aircraft in the open or during operation resulting from each separately occurring event,
except for reasonable wear and tear and except to the extent the loss or damage is
caused by negligence of Government personnel.
(2) If the Government elects to require that
the aircraft be replaced or restored by the
Contractor to its condition immediately
prior to the damage, the equitable adjustment in the price authorized by paragraph (i)
of this clause shall not include the dollar
amount of the risk assumed by the Contractor under this paragraph (e). If the Government does not elect repair or replacement, the Contractor agrees to credit the
contract price or pay the Government $1,000
(or the amount of the loss if smaller) as directed by the Contracting Officer.
(f) No subcontractor may be relieved from
liability for damage to, or loss or destruction
of, aircraft while in its possession or control,
except to the extent that the subcontract,
with the Contracting Officer’s prior written
approval, provides for relief of the subcontractor from that liability. In the absence of
such approval, the subcontract shall require
the return of the aircraft in as good condition as when received, except for reasonable

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National Aeronautics and Space Administration
wear and tear or for the utilization of the
property in accordance with the provisions
of this contract. If a subcontractor has not
been relieved from liability and any damage,
loss, or destruction occurs, the Contractor
shall enforce the liability of the subcontractor for that damage to, or loss or destruction of, the aircraft for the benefit of
the Government.
(g) The Contractor warrants that the contract price does not and will not include, except as this clause may otherwise authorize,
any charge or contingency reserve for insurance (including self-insurance funds or reserves) covering any damage to, or loss or
destruction of, aircraft while in the open,
during operation, or in flight, the risk of
which has been assumed by the Government
under this clause, whether or not such assumption may be terminated as to aircraft
in the open.
(h)(1) In the event of damage to, or loss or
destruction of, aircraft in the open, during
operation, or in flight, the Contractor shall
take all reasonable steps to protect the aircraft from further damage, separate damaged and undamaged aircraft, and put all aircraft in the best possible order. Further, except in cases covered by paragraph (e) of this
clause, the Contractor should furnish to the
Contracting Officer a statement of—
(i) The damaged, lost, or destroyed aircraft;
(ii) The time and origin of the damage,
loss, or destruction;
(iii) All known interests in commingled
property of which aircraft are a part; and
(iv) Any insurance covering any part of the
interest in the commingled property.
(2) Except in cases covered by paragraph
(e) of this clause, an equitable adjustment
shall be made in the amount due under this
contract for expenditures made by the Contractor in performing its obligations under
this paragraph (h), and this contract shall be
modified in writing accordingly.
(i)(1) If, before delivery and acceptance by
the Government, any aircraft is damaged,
lost, or destroyed and the Government has
under this clause assumed the risk of that
damage, loss, or destruction, the Government shall either
(i) Require that the aircraft be replaced or
restored by the Contractor to its condition
immediately prior to the damage or
(ii) Terminate this contract with respect
to that aircraft.
(2) If the Government requires that the aircraft be replaced or restored, an equitable
adjustment shall be made in the amount due
under this contract and in the time required
for its performance, and the contract shall
be modified in writing accordingly.
(3) If this contract is terminated under this
paragraph (i)(1)(ii) with respect to the aircraft, and under this clause the Government
has assumed the risk of the damage, loss, or

1852.228–71

destruction, the Contractor shall be paid the
contract price for the aircraft (or, if applicable, any work to be performed on the aircraft) less any amounts the Contracting Officer determines (i) that it would have cost the
Contractor to complete the aircraft (or any
work to be performed on it), together with
any anticipated profit on the uncompleted
work and (ii) to be the value, if any, of the
damaged aircraft or any remaining portion
of it retained by the Contractor. The Contracting Officer shall have the right to prescribe the manner of disposition of the damaged, lost, or destroyed aircraft or any remaining parts of it, and, if the Contractor incurs additional costs as a result of such disposition, a further equitable adjustment
shall be made in the amount due to the Contractor.
(j)(1) If the Contractor is at any time reimbursed or compensated by any third person
for any damage, loss, or destruction of any
aircraft, the risk of which has been assumed
by the Government under this clause and for
which the Contractor has been compensated
by the Government, it shall equitably reimburse the Government.
(2) The Contractor shall do nothing to prejudice the Government’s rights to recover
against third parties for any such damage,
loss, or destruction and, upon the request of
the Contracting Officer, shall at the Government’s expense furnish to the Government
all reasonable assistance and cooperation
(including the prosecution of suits and the
execution of instruments of assignment or
subrogation in favor of the Government) in
obtaining recovery.
[61 FR 55772, Oct. 29, 1996]

1852.228–71 Aircraft flight risks.
(a) As prescribed in 1828.311–2, insert
the following clause:
AIRCRAFT FLIGHT RISKS (DEC 1988)
(a) Notwithstanding any other provision of
this contract (particularly paragraph (g) of
the Government Property (Cost-Reimbursement, Time-and-Materials, or Labor-Hour
Contracts) clause and paragraph (c) of the
Insurance—Liability
to
Third
Persons
clause), the Contractor shall not: (1) Be relieved of liability for damage to, or loss or
destruction of, aircraft sustained during
flight or (2) be reimbursed for liabilities to
third persons for loss of or damage to property or for death or bodily injury caused by
aircraft during flight, unless the flight crew
members have previously been approved in
writing by the Contracting Officer.
(b) For the purposes of this clause—
(1) Unless otherwise specifically provided
in the Schedule, ‘‘aircraft’’ includes any aircraft, whether furnished by the Contractor
under this contract (either before or after

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1852.228–72

48 CFR Ch. 18 (10–1–02 Edition)

Government acceptance) or furnished by the
Government to the Contractor under this
contract, including all Government property
placed or installed or attached to the aircraft, unless the aircraft and property are
covered by a separate bailment agreement.
(2) ‘‘Flight’’ includes any flight demonstration, flight test, taxi test, or other flight
made in the performance of this contract, or
for the purpose of safeguarding the aircraft,
or previously approved in writing by the
Contracting Officer.
(i) With respect to land-based aircraft,
flight commences with the taxi roll from a
flight line and continues until the aircraft
has completed the taxi roll to a flight line.
(ii) With respect to seaplanes, flight commences with the launching from a ramp and
continues until the aircraft has completed
its landing run and is beached at a ramp.
(iii) With respect to helicopters, flight
commences upon engagement of the rotors
for the purpose of take-off and continues
until the aircraft has returned to the ground
and rotors are disengaged.
(iv) With respect to vertical take-off aircraft, flight commences upon disengagement
from any launching platform or device and
continues until the aircraft has been re-engaged to any launching platform or device.
(3) ‘‘Flight crew members’’ means the
pilot, copilot, and, unless otherwise specifically provided in the Schedule, the flight engineer and navigator when required or assigned to their respective crew positions to
conduct any flight on behalf of the Contractor.
(c) (1) If any aircraft is damaged, lost, or
destroyed during flight and the amount of
the damage, loss, or destruction exceeds
$100,000 or 20 percent of the estimated cost,
exclusive of any fee, of this contract, whichever is less, and if the Contractor is not liable for the damage, loss, or destruction
under the Government Property (Cost-Reimbursement, Time-and-Materials, or LaborHour Contracts) clause of this contract or
under paragraph (a) of this clause, an equitable adjustment for any resulting repair,
restoration, or replacement required under
this contract shall be made: (i) In the estimated cost, the delivery schedule, or both
and (ii) in the amount of any fee to be paid
to the Contractor, and the contract shall be
modified in writing accordingly.
(2) In determining the amount of adjustment in the fee that is equitable, any fault of
the Contractor, its employees, or any subcontractor that materially contributed to
the damage, loss, or destruction shall be
taken into consideration.

(End of clause)
[54 FR 28340, July 5, 1989, as amended at 61
FR 55774, Oct. 29, 1996]

1852.228–72 Cross-waiver of
for space shuttle services.

As prescribed in 1828.371 (b) and (e),
insert the following clause:
CROSS-WAIVER OF LIABILITY FOR SPACE
SHUTTLE SERVICES (SEP 1993)
(a) As prescribed by regulation (14 CFR
part 1266), NASA agreements involving Space
Shuttle flights are required to contain broad
cross-waivers of liability among the parties
and the parties related entities to encourage
participation in space exploration, use, and
investment. The purpose of this clause is to
extend this cross-waiver requirement to Contractors and related entities under their contracts. This cross-waiver of liability shall be
broadly construed to achieve the objective of
encouraging participation in space activities.
(b) As used in this clause, the term:
(1) Contractors and Subcontractors include
suppliers of any kind.
(2) Damage means:
(i) Bodily injury to, or other impairment of
health of, or death of, any person;
(ii) Damage to, loss of, or loss of use of any
property;
(iii) Loss of revenue or profits; or
(iv) Other direct, indirect, or consequential
damage;
(3) Party means a person or entity that
signs an agreement involving a Space Shuttle service;
(4) Payload means all property to be flown
or used on or in the Space Shuttle; and
(5) Protected Space Operations means all
Space Shuttle and payload activities on
Earth, in outer space, or in transit between
Earth and outer space performed in furtherance of an agreement involving Space Shuttle services or performed under this contract. ‘‘Protected Space Operations’’ excludes activities on Earth which are conducted on return from space to develop further a payload’s product or process except
when such development is for Space Shuttlerelated activities necessary to implement an
agreement involving Space Shuttle services
or to perform this contract. It includes, but
is not limited to:
(i) Research, design, development, test,
manufacture, assembly, integration, operation, or use of the Space Shuttle, transfer
vehicles, payloads, related support equipment, and facilities and services;
(ii) All activities related to ground support, test, training, simulation, or guidance
and control equipment and related facilities
or services.
(6) Related entity means:
(i) A party’s Contractors or subcontractors
at any tier;
(ii) A party’s users or customers at any
tier; or

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National Aeronautics and Space Administration
(iii) A Contractor or subcontractor of a
party’s user or customer at any tier.
(c) (1) The Contractor agrees to a waiver of
liability pursuant to which the Contractor
waives all claims against any of the entities
or persons listed in paragraph (c)(1)(i)
through (c)(1)(iii) of this clause based on
damage arising out of Protected Space Operations. This waiver shall apply only if the
person, entity, or property causing the damage is involved in Protected Space Operations and the person, entity, or property
damaged is damaged by virtue of its involvement in Protected Space Operations. This
waiver shall apply to any claims for damage,
whatever the legal basis for such claims, including but not limited to delict (a term
used in civil law countries to denote a class
of cases similar to tort) and tort (including
negligence of every degree and kind) and
contract, against:
(i) Any party other than the Government;
(ii) A related entity of any party other
than the Government; and
(iii) The employees of any of the entities
identified in (c)(1)(i) and (c)(1)(ii) of this
clause.
(2) The Contractor agrees to extend the
waiver of liability as set forth in paragraph
(c)(1) of this clause to subcontractors at any
tier by requiring them, by contract or otherwise, to agree to waive all claims against the
entities or persons identified in paragraphs
(c)(1)(i) through (c)(1)(iii) of this clause.
(3) For avoidance of doubt, this cross-waiver includes a cross-waiver of liability arising
from the Convention on International Liability for Damage Caused by Space Objects,
(March 29, 1972, 24 United States Treaties and
other International Agreements (U.S.T.)
2389, Treaties and Other International Acts
Series (T.I.A.S.) No. 7762 in which the person,
entity, or property causing the damage is involved in Protection Space Operations, and
the person, entity, or property damaged is
damaged by virtue of its involvement in Protected Space Operations.
(4) Notwithstanding the other provisions of
this clause, this waiver of liability shall not
be applicable to:
(i) Claims between any party and its related entities or claims between the Government’s related entities (e.g., claims between
the Government and the Contractor are included within this exception);
(ii) Claims made by a natural person, his/
her estate, survivors, or subrogees for injury
or death of such natural person;
(iii) Claims for damage caused by willful
misconduct; and
(iv) Intellectual property claims.
(5) Nothing in this clause shall be construed to create the basis for a claim or suit
where none would otherwise exist.

1852.228–75
(End of clause)

[59 FR 65730, Dec. 21, 1994]

1852.228–73

Bid bond.

As prescribed in 1828.101–70, insert the
following provision:
BID BOND (OCT 1988)
(a) Each bidder shall submit with its bid a
bid bond (Standard Form 24) with good and
sufficient surety or sureties acceptable to
the Government, or other security as provided in Federal Acquisition Regulation
clause 52.228–1, in the amount of twenty percent (20%) of the bid price, or $3 million,
whichever is the lower amount.
(b) Bid bonds shall be dated the same date
as the bid or earlier.

(End of provision)
1852.228–75
erage.

Minimum insurance cov-

As prescribed in 1828.372, insert the
following clause:
MINIMUM INSURANCE COVERAGE (OCT 1988)
The Contractor shall obtain and maintain
insurance coverage as follows for the performance of this contract:
(a) Worker’s compensation and employer’s
liability insurance as required by applicable
Federal and state workers’ compensation
and occupational disease statutes. If occupational diseases are not compensable under
those statutes, they shall be covered under
the employer’s liability section of the insurance policy, except when contract operations
are so commingled with the Contractor’s
commercial operations that it would not be
practical. The employer’s liability coverage
shall be at least $100,000, except in States
with exclusive or monopolistic funds that do
not permit workers’ compensation to be
written by private carriers.
(b) Comprehensive general (bodily injury)
liability insurance of at least $500,000 per occurrence.
(c) Motor vehicle liability insurance written on the comprehensive form of policy
which provides for bodily injury and property damage liability covering the operation
of all motor vehicles used in connection with
performing the contract. Policies covering
motor vehicles operated in the United States
shall provide coverage of at least $200,000 per
person and $500,000 per occurrence for bodily
injury liability and $20,000 per occurrence for
property damage. The amount of liability
coverage on other policies shall be commensurate with any legal requirements of the locality and sufficient to meet normal and customary claims.

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1852.228–76

48 CFR Ch. 18 (10–1–02 Edition)

(d) Comprehensive general and motor vehicle liability policies shall contain a provision worded as follows:
‘‘The insurance company waives any right
of subrogation against the United States of
America which may arise by reason of any
payment under the policy.’’
(e) When aircraft are used in connection
with performing the contract, aircraft public
and passenger liability insurance of at least
$200,000 per person and $500,000 per occurrence for bodily injury, other than passenger
liability, and $200,000 per occurrence for
property damage. Coverage for passenger liability bodily injury shall be at least $200,000
multiplied by the number of seats or passengers, whichever is greater.

(End of clause)
1852.228–76 Cross-waiver of liability
for space station activities.
As prescribed in 1828.371(d) and (e),
insert the following clause:
CROSS-WAIVER OF LIABILITY FOR SPACE
STATION ACTIVITIES (DEC 1994)
(a) The Intergovernmental Agreement for
the Space Station contains a broad crosswaiver provision to encourage participation
in the exploration and use of outer space
through the Space Station. The purpose of
this clause is to extend this cross-waiver requirement to Contractors and subcontractors as related entities of NASA. This crosswaiver of liability shall be broadly construed
to achieve this objective of encouraging participation in space activities.
(b) As used in this clause, the term:
(1) Damage means:
(i) Bodily injury to, or other impairment of
health of, or death of, any person;
(ii) Damage to, loss of, or loss of use of any
property;
(iii) Loss of revenue or profits; or
(iv) Other direct, indirect, or consequential
damage.
(2) Launch Vehicle means an object (or any
part thereof) intended for launch, launched
from Earth, or returning to Earth which carries payloads or persons, or both.
(3) Partner State means each contracting
party for which the ‘‘Agreement among the
Government of the United States of America, Governments of Member States of the
European Space Agency, Government of
Japan, and the Government of Canada on Cooperation in the Detailed Design, Development, Operation, and Utilization of the Permanently Manned Civil Space Station’’ (the
‘‘Intergovernmental Agreement’’) has entered into force, in accordance with Article
25 of the Intergovermental Agreement, and
also includes any future signatories of the
Intergovernmental Agreement. It includes
the Cooperating Agency of a Partner State.

The National Aeronautics and Space Administration (NASA) for the United States, the
Canadian Space Agency (CSA) for the Government of Canada, the European Space
Agency (ESA) and the Science and Technology Agency of Japan (STA) are the Cooperating Agencies responsible for implementing Space Station cooperation. A Partner State also includes any entity specified
to the Memorandum of Understanding (MOU)
between NASA and the Government of Japan
to assist the Government of Japan Cooperating Agency in the implementation of that
MOU.
(4) Payload means all property to be flown
or used on or in a launch vehicle or the
Space Station.
(5) Protected Space Operations means all
launch vehicle activities, space station activities, and payload activities on Earth, in
outer space, or in transit between Earth and
outer space performed in furtherance of the
Intergovernmental Agreement or performed
under this contract. ‘‘Protected Space Operations’’ also includes all activities related to
evolution of the Space Station as provided
for in Article 14 of the Intergovernmental
Agreement. ‘‘Protected Space Operations’’
excludes activities on Earth which are conducted on return from the Space Station to
develop further a payload’s product or process except when such development is for
Space Station-related activities in implementation of the Intergovernmental Agreement or in performance of this contract. It
includes, but is not limited to:
(i) Research, design, development, test,
manufacture, assembly, integration, operation, or use of launch or transfer vehicles,
payloads, related support equipment, and facilities and services;
(ii) All activities related to ground support, test, training, simulation, or guidance
and control equipment and related facilities
or services.
(6) Related entity means:
(i) A Partner State’s Contractors or subcontractors at any tier;
(ii) A Partner State’s users or customers at
any tier; or
(iii) A Contractor or subcontractor of a
Partner States’s user or customer at any
tier.
(7) Contractors and Subcontractors include
suppliers of any kind.
(c) (1) The Contractor agrees to a crosswaiver of liability pursuant to which the
Contractor waives all claims against any of
the entities or persons listed in paragraphs
(c)(1)(i) through (c)(1)(iii) of this clause based
on damage arising out of Protected Space
Operations. This waiver shall apply only if
the person, entity, or property causing the
damage is involved in Protected Space Operations and the person, entity, or property
damaged is damaged by virtue of its involvement in Protected Space Operations. The

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National Aeronautics and Space Administration
cross-waiver shall apply to any claims for
damage, whatever the legal basis for such
claims, including but not limited to delict (a
term used in civil law countries to denote a
class of cases similar to tort) and tort
(including negligence of every degree and
kind) and contract against:
(i) Any Partner State other than the
United States;
(ii) A related entity of any Partner State
other than the United States; and
(iii) The employee of any of the entities
identified in paragraphs (c)(1) (i) and (ii) of
this clause.
(2) The Contractor agrees to extend the
waiver of liability as set forth in paragraph
(c)(1) of this clause to subcontractors at any
tier by requiring them, by contract or otherwise, to agree to waive all claims against the
entities or persons identified in paragraphs
(c)(1)(i) through (c)(1)(iii) of this clause.
(3) For avoidance of doubt, this cross-waiver includes a cross-waiver of liability arising
from the Convention on International Liability for Damage Caused by Space Objects,
(March 29, 1972, 24 United States Treaties and
other International Agreements (U.S.T.)
2389, Treaties and other International Acts
Series (T.I.A.S.) No. 7762) in which the person, entity, or property causing the damage
is involved in Protected Space Operations.
(4) Notwithstanding the other provisions of
this clause, this cross-waiver of liability
shall not be applicable to:
(i) Claims between the United States and
its related entities or claims between the related entities of any Partner State (e.g.,
claims between the Government and the
Contractor are included within this exception);
(ii) Claims made by a natural person, his/
her estate, survivors, or subrogees for injury
or death of such natural person;
(iii) Claims for damage caused by willful
misconduct; and
(iv) Intellectual property claims.
(5) Nothing in this clause shall be construed to create the basis for a claim or suit
where none would otherwise exist.

(End of clause)
[59 FR 65730, Dec. 21, 1994]

1852.228–78 Cross-waiver of liability
for NASA expendable launch vehicle launches.
As prescribed in 1828.371 (c) and (e),
insert the following clause:
CROSS-WAIVER OF LIABILITY FOR NASA EXPENDABLE
LAUNCH
VEHICLE
(ELV)
LAUNCHES (SEP 1993)
(a) As prescribed by regulation (14 CFR
part 1266), NASA agreements involving ELV

1852.228–78

launches are required to contain broad crosswaivers of liability among the parties and
the parties related entities to encourage participation in space exploration, use, and investment. The purpose of this clause is to extend this cross-waiver requirement to contractors and subcontractors as related entities of NASA. This cross-waiver of liability
shall be broadly construed to achieve the objective of encouraging participation in space
activities.
(b) As used in this clause, the term:
(1) Contractors and Subcontractors include
suppliers of any kind.
(2) Damage means:
(i) Bodily injury to, or other impairment of
health of, or death of, any person;
(ii) Damage to, loss of, or loss of use of any
property;
(iii) Loss of revenue or profits; or
(iv) Other direct, indirect, or consequential
damage;
(3) Party means a person or entity that
signs an agreement involving an ELV
launch;
(4) Payload means all property to be flown
or used on or in the ELV; and
(5) Protected Space Operations means all
ELV and payload activities on Earth, in
outer space, or in transit between Earth and
outer space performed in furtherance of an
agreement involving an ELV launch or performed under the contract. ‘‘Protected Space
Operations’’ excludes activities on Earth
which are conducted on return from space to
develop further a payload’s product or process except when such development is for
ELV-related activities necessary to implement an agreement involving an ELV launch
or to perform this contract. It includes, but
is not limited to:
(i) Research, design, development, test,
manufacture, assembly, integration, operation, or use of ELVs, transfer vehicles, payloads, related support equipment, and facilities and services;
(ii) All activities related to ground support, test, training, simulation, or guidance
and control equipment and related facilities
or services.
(6) Related entity means:
(i) A party’s Contractors or subcontractors
at any tier;
(ii) A party’s users or customers at any
tier; and
(iii) A Contractor or subcontractor of a
party’s user or customer at any tier.
(c) (1) The Contractor agrees to a waiver of
liability pursuant to which the Contractor
waives all claims against any of the entities
or persons listed in paragraphs (c)(1)(i)
through (c)(1)(iii) of this clause based on
damage arising out of Protected Space Operations. This waiver shall apply only if the
person, entity, or property causing the damage is involved in Protected Space Operations and the persons, entity, or property

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1852.228–80

48 CFR Ch. 18 (10–1–02 Edition)

damaged is damaged by virtue of its involvement in Protected Space Operations. The
waiver shall apply to any claims for damage,
whatever the legal basis for such claims, including but not limited to delict (a term
used in civil law countries to denote a class
of cases similar to tort) and tort (including
negligence of every degree and kind) and
contract, against:
(i) Any party other than the Government;
(ii) A related entity of any party other
than the Government; and
(iii) The employees of any of the entities
identified in (c)(1) (i) and (ii) of this clause.
(2) The Contractor agrees to extend the
waiver of liability as set forth in paragraph
(c)(1) of this clause to subcontractors at any
tier by requiring them, by contract or otherwise, to agree to waive all claims against the
entities or persons identified in paragraphs
(c)(1)(i) through (c)(1)(iii) of this clause.
(3) For avoidance of doubt, this cross-waiver includes a cross-waiver of liability arising
from the Convention on International Liability for Damage Caused by Space Objects,
(March 29, 1972, 24 United States Treaties and
other International Agreements (U.S.T.)
2389, Treaties and other International Acts
Series (T.I.A.S.) No. 7762) in which the person, entity, or property causing the damage
is involved in Protected Space Operations.
(4) Notwithstanding the other provisions of
this clause, this cross-waiver of liability
shall not be applicable to:
(i) Claims between any party and its related entities or claims between any party’s
related entities (e.g., claims between the
Government and the Contractor are included
within this exception);
(ii) Claims made by a natural person, his/
her estate, survivors, or subrogees for injury
or death of such natural person;
(iii) Claims for damage caused by willful
misconduct; and
(iv) Intellectual property claims.
(5) Nothing in this clause shall be construed to create the basis for a claim or suit
where none would otherwise exist.
(6) This cross-waiver shall not be applicable when the Commercial Space Launch Act
cross-waiver (49 U.S.C. App. 2615) is applicable.

(End of clause)
[59 FR 56731, Dec. 21, 1994]

1852.228–80 Insurance—Immunity
From Tort Liability.
As prescribed in 1828.311–270(b), insert
the following provision:
INSURANCE—IMMUNITY FROM TORT LIABILITY
(SEP 2000)
If the offeror is partially or totally immune from tort liability to third persons as

a State agency or as a charitable institution,
the offeror will include in its offer a representation to that effect. When the successful offeror represented in its offer that it is
immune from tort liability, the following
clause(s) will be included in the resulting
contract:
(a) When the offeror represents that it is
partially immune from tort liability to third
persons as a State agency or as a charitable
institution, the clause at FAR 52.228–7, Insurance—Liability To Third Persons, and the
associated NFS clause 1852.228–81, Insurance—Partial Immunity From Tort Liability, will be included in the contract.
(b) When the offeror represents that it is
totally immune from tort liability to third
persons as a State agency or as a charitable
institution. the clause at NFS 1852.228–82 Insurance—Total Immunity From Tort Liability, will be included in the contract.

(End of provision)
[65 FR 54440, Sept. 8, 2000]

1852.228–81 Insurance—Partial Immunity From Tort Liability.
As prescribed in 1828.311–270(c), insert
the following clause:
INSURANCE—PARTIAL IMMUNITY FROM TORT
LIABILITY (SEP 2000)
(a) Except as provided for in paragraph (b)
of this clause, the Government does not assume any liability to third persons, nor will
the Government reimburse the contractor
for its liability to third persons, with respect
to loss due to death, bodily injury, or damage to property resulting in any way from
the performance of this contract; and
(b) The contractor need not provide or
maintain insurance coverage as required by
paragraph (a) of FAR clause 52.228–7, Insurance—Liability To Third Persons, provided
that the contractor may obtain any insurance coverage deemed necessary, subject to
approval by the Contracting Officer as to
form, amount, and duration. The Contractor
shall be reimbursed for the cost of such insurance and, to the extent provided in paragraph (c) of FAR clause 52.228–7, for liabilities to third person for which the contractor
has obtained insurance coverage as provided
in this paragraph, but for which such coverage is insufficient in amount.

(End of clause)
[65 FR 54440, Sept. 8, 2000]

1852.228–82 Insurance—Total
Immunity From Tort Liability.
As prescribed in 1828.311–270(d), insert
the following clause:

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National Aeronautics and Space Administration
INSURANCE—TOTAL IMMUNITY FROM TORT
LIABILITY (SEP 2000)
(a) The Government does not assume any
liability to third persons, nor will the Government reimburse the Contractor for its liability to third persons, with respect to loss
due to death, bodily injury, or damage to
property resulting in any way from the performance of this contract or any subcontract
under this contract.
(b) If any suit or action is filed, or if any
claim is made against the Contractor, the
cost and expense of which may be reimbursable to the contractor under this contract,
the Contractor will immediately notify the
contracting officer and promptly furnish
copies of all pertinent papers received by the
contractor. The Contractor will, if required
by the Government, authorize Government
representatives to settle or defend the claim
and to represent the contractor in or take
charge of any litigation. The Contractor
may, at its own expense, be associated with
the Government representatives in any such
claim or litigation.

(End of clause)

1852.232–70

labor being proposed. Differences between
benefits offered professional and non-professional employees shall be highlighted. The
requirements of this plan may be combined
with that required by the clause at FAR
52.222–46, ‘‘Evaluation of Compensation for
Professional Employees.’’
(b) The offeror shall provide written support to demonstrate that its proposed compensation is reasonable.
(c) The offeror shall include the rationale
for any conformance procedures used or
those Service Contract Act employees proposed that do not fail within the scope of any
classification listed in the applicable wage
determination.
(d) The offeror shall require all service subcontractors (1) with proposed cost reimbursement or non-competitive fixed-price type
subcontracts having a total potential value
in excess of $500,000 and (2) the cumulative
value of all their service subcontracts under
the proposed prime contract in excess of 10
percent of the prime contract’s total potential value, provide as part of their proposals
the information identified in (a) through (c)
of this provision.

(End of provision)
[65 FR 54440, Sept. 8, 2000]

1852.231–70 Precontract costs.
As prescribed in 1831.205–70, insert the
following clause:
PRECONTRACT COSTS (JUN 1995)
The contractor shall be entitled to reimbursement for costs incurred on or after
llllllll in an amount not to exceed
$llll that, if incurred after this contract
had been entered into, would have been reimbursable under this contract.

(End of clause)
[60 FR 29505, June 5, 1995]

1852.231–71 Determination of compensation reasonableness.
As prescribed at 1831.205–671, insert
the following provision.
DETERMINATION OF COMPENSATION
REASONABLENESS (MAR 1994)
(a) The proposal shall include a total compensation plan. This plan shall address all
proposed labor categories, including those
personnel subject to union agreements, the
Service Contract Act, and those exempt from
both of the above. The total compensation
plan shall include the salaries/wages, fringe
benefits and leave programs proposed for
each of these categories of labor. The plan
also shall include a discussion of the consistency of the plan among the categories of

[62 FR 4474, Jan. 30, 1997]

1852.232–70 NASA modification of FAR
52.232–12.
As prescribed at 1832.412–70, make the
following modifications:
NASA MODIFICATION OF FAR 52.232–12, (MAR
1998)
(a) Basic Clause. (1) In paragraph (e), Maximum Payment, in the sentence that begins
‘‘When the sum of,’’ change the word ‘‘When’’
to lower case and insert before it:
‘‘Unliquidated advance payments shall not
exceed $ll at any time outstanding. In addition. * * *.’’
(2) In paragraph (m)(1), delete ‘‘in the form
prescribed by the administering office’’ and
substitute ‘‘and Standard Form 272, Federal
Cash Transactions Report, and, if appropriate, Standard Form 272–A, Federal Cash
Transactions Report Continuation.’’
(b) Alternate II (if incorporated in the contract). In paragraph (e), Maximum Payment,
in the sentence that begins ‘‘When the sum
of,’’ change the word ‘‘When’’ to lower case
and insert before it: ‘‘Unliquidated advance
payments shall not exceed $ll at any time
outstanding. In addition. * * *.’’
(c) Alternate V (if incorporated in the contract). (1) Substitute the following for paragraph (b): ‘‘(b) Use of funds. The Contractor
may use advance payment funds only to pay
for properly allocable, allowable, and reasonable costs for direct materials, direct labor,
indirect costs, or such other costs approved

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1852.232–77

48 CFR Ch. 18 (10–1–02 Edition)

in writing by the administering contracting
office. Payments are subject to any restrictions in other clauses of this contract. Determinations of whether costs are properly allocable, allowable, and reasonable shall be in
accordance with generally accepted accounting principles, subject to any applicable subparts of Part 31 of the Federal Acquisition
Regulation, other applicable regulations referenced in Part 31, or subpart 1831.2.’’
(2) In paragraph (d), Maximum Payment, in
the sentence that begins ‘‘When the sum of,’’
change the word ‘‘When’’ to lower case and
insert before it: ‘‘Unliquidated advance payments shall not exceed $ll at any time outstanding. In addition. * * *.’’
(3) In paragraph (j)(1), insert between
‘‘statements,’’ and ‘‘and’’ ‘‘together with
Standard Form 272, Federal Cash Transactions Report, and, if appropriate, Standard
Form 272–A, Federal Cash Transactions Report Continuation’’
(4) If this is a Phase I contract awarded
under the SBIR or STTR programs, delete
paragraph (a) and substitute the following:
‘‘(a) Requirements for payment. Advance
payments will be made under this contract
upon receipt of invoices from the Contractor.
Invoices should be clearly marked ‘‘Small
Business Innovation Research Contract’’ or
‘‘Small Business Technology Transfer Contract,’’ as appropriate, to expedite payment
processing. One-third of the total contract
price will be available to be advanced to the
contractor immediately after award, another
one-third will be advanced three months
after award, and the final one-third will be
paid upon acceptance by NASA of the Contractor’s final report. By law, full payment
must be made no later than 12 months after
the date that contract requirements are
completed. The Contractor shall flow down
the terms of this clause to any subcontractor
requiring advance payments.’’

(End of clause)
[63 FR 14040, Mar. 24, 1998]

1852.232–77 Limitation of funds (fixedprice contract).
As prescribed in 1832.705–270(a), insert
the following clause. Contracting officers are authorized, in appropriate
cases, to revise clause paragraphs (a),
(b), and (g) to specify the work required
under the contract, in lieu of using
contract item numbers. The 60-day period may be varied from 30 to 90 days,
and the 75 percent from 75 to 85 percent:

LIMITATION OF FUNDS (FIXED-PRICE
CONTRACT) (MAR 1989)
(a) Of the total price of items ll through
ll, the sum of $ll is presently available
for payment and allotted to this contract. It
is anticipated that from time to time additional funds will be allocated to the contract
in accordance with the following schedule,
until the total price of said items is allotted:
SCHEDULE FOR ALLOTMENT OF FUNDS
Date
Amounts
(b) The Contractor agrees to perform or
have performed work on the items specified
in paragraph (a) of this clause up to the
point at which, if this contract is terminated
pursuant to the Termination for Convenience of the Government clause of this contract, the total amount payable by the Government (including amounts payable for subcontracts and settlement costs) pursuant to
paragraphs (f) and (g) of that clause would,
in the exercise of reasonable judgment by
the Contractor, approximate the total
amount at the time allotted to the contract.
The Contractor is not obligated to continue
performance of the work beyond that point.
The Government is not obligated in any
event to pay or reimburse the Contractor
more than the amount from time to time allotted to the contract, anything to the contrary in the Termination for Convenience of
the Government clause notwithstanding.
(c) (1) It is contemplated that funds presently allotted to this contract will cover the
work to be performed until ll.
(2) If funds allotted are considered by the
Contractor to be inadequate to cover the
work to be performed until that date, or an
agreed date substituted for it, the Contractor shall notify the Contracting Officer
in writing when within the next 60 days the
work will reach a point at which, if the contract is terminated pursuant to the Termination for Convenience of the Government
clause of this contract, the total amount
payable by the Government (including
amounts payable for subcontracts and settlement costs) pursuant to paragraphs (f) and
(g) of that clause will approximate 75 percent
of the total amount then allotted to the contract.
(3) (i) The notice shall state the estimated
date when the point referred to in paragraph
(c)(2) of this clause will be reached and the
estimated amount of additional funds required to continue performance to the date
specified in paragraph (c)(1) of this clause, or
an agreed date substituted for it.
(ii) The Contractor shall, 60 days in advance of the date specified in paragraph
(c)(1) of this clause, or an agreed date substituted for it, advise the Contracting Officer
in writing as to the estimated amount of additional funds required for the timely performance of the contract for a further period

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National Aeronautics and Space Administration
as may be specified in the contract or otherwise agreed to by the parties.
(4) If, after the notification referred to in
paragraph (c)(3)(ii) of this clause, additional
funds are not allotted by the date specified
in paragraph (c)(1) of this clause, or an
agreed date substituted for it, the Contracting Officer shall, upon the Contractor’s
written request, terminate this contract on
that date or on the date set forth in the request, whichever is later, pursuant to the
Termination for Convenience of the Government clause.
(d) When additional funds are allotted from
time to time for continued performance of
the work under this contract, the parties
shall agree on the applicable period of contract performance to be covered by these
funds. The provisions of paragraphs (b) and
(c) of this clause shall apply to these additional allotted funds and the substituted
date pertaining to them, and the contract
shall be modified accordingly.
(e) If, solely by reason of the Government’s
failure to allot additional funds in amounts
sufficient for the timely performance of this
contract, the Contractor incurs additional
costs or is delayed in the performance of the
work under this contract, and if additional
funds are allotted, an equitable adjustment
shall be made in the price or prices
(including appropriate target, billing, and
ceiling prices where applicable) of the items
to be delivered, or in the time of delivery, or
both.
(f) The Government may at any time before termination, and, with the consent of
the Contractor, after notice of termination,
allot additional funds for this contract.
(g) The provisions of this clause with respect to termination shall in no way be
deemed to limit the rights of the Government under the default clause of this contract. The provisions of this Limitation of
Funds clause are limited to the work on and
allotment of funds for the items set forth in
paragraph (a). This clause shall become inoperative upon the allotment of funds for the
total price of said work except for rights and
obligations then existing under this clause.
(h) Nothing in this clause shall affect the
right of the Government to terminate this
contract pursuant to the Termination for
Convenience of the Government clause of
this contract.

1852.233–70

PAYMENT FOR ON-SITE PREPARATORY COSTS
(SEP 1987)
Costs associated with on-site preparatory
work (start-up or set-up costs) will be prorated over all work activities of a Critical
Path Method (CPM) network or Progress
Chart against which progress payments will
be sought. Separate payment for on-site preparatory costs will not be made by the Government.

(End of clause)
1852.232–81

CONTRACT FUNDING (JUN 1990)
(a) For purposes of payment of cost, exclusive of fee, in accordance with the Limitation of Funds clause, the total amount allotted by the Government to this contract is
$llll. This allotment is for [Insert applicable item number(s), task(s), or work description] lllll and covers the following
estimated period of performance: lllll.
(b) An additional amount of $ lll is obligated under this contract for payment of fee.

(End of clause)
[54 FR 28340, July 5, 1989, as amended at 55
FR 27090, June 29, 1990; 57 FR 40856, Sept. 8,
1992]

1852.232–82 Submission of requests for
progress payments.
As prescribed in 1832.502–470, insert
the following clause:
SUBMISSION OF REQUESTS FOR PROGRESS
PAYMENTS (MAR 1989)
The Contractor shall request progress payments in accordance with the Progress Payments clause by submitting to the Contracting Officer an original and two copies of
Standard Form (SF) 1443, Contractor’s Request for Progress Payment, and the contractor’s invoice (if applicable). The Contracting Officer’s office is the designated
billing office for progress payments for purposes of the Prompt Payment clause.

(End of clause)
1852.233–70

(End of clause)
1852.232–79 Payment for on-site preparatory costs.
As prescribed in 1832.111–70, insert the
following clause:

Contract funding.

As prescribed in 1832.705–270(b), insert
the following clause:

Protests to NASA.

As prescribed in 1833.106–70, insert the
following provision:
PROTESTS TO NASA (OCT 2002)
Potential bidders or offerors may submit a
protest under 48 CFR part 33 (FAR Part 33)

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1852.235–70

48 CFR Ch. 18 (10–1–02 Edition)

directly to the Contracting Officer. As an alternative to the Contracting Officer’s consideration of a protest, a potential bidder or offeror may submit the protest to the Assistant Administrator for Procurement, who will
serve as or designate the official responsible
for conducting an independent review. Protests requesting an independent review shall
be addressed to Assistant Administrator for
Procurement, NASA Code H, Washington, DC
20546–0001.

availability of the report has been determined.

(End of clause)
[65 FR 45307, July 21, 2000]

1852.235–71 Key personnel and facilities.
As prescribed in 1835.070(b), insert the
following clause:

[62 FR 11108, Mar. 11, 1997, as amended at 67
FR 61519, Oct. 1, 2002]

1852.235–70 Center for AeroSpace Information—final scientific and technical reports.
As prescribed in 1835.070(a), insert the
following clause:
CENTER FOR AEROSPACE INFORMATION—FINAL
SCIENTIFIC AND TECHNICAL REPORTS (JUL
2000)
(a) The Contractor should register with
and avail itself of the services provided by
the NASA Center for AeroSpace Information
(CASI) (http://www.sti.nasa.gov) for the conduct of research or research and development
required under this contract. CASI provides
a variety of services and products as a central NASA repository of research information, which may enhance contract performance. The address is set out in paragraph (d)
of this clause.
(b) Should the CASI information or service
requested by the Contractor be unavailable
or not in the exact form necessary by the
Contractor, neither CASI nor NASA is obligated to search for or change the format of
the information. A failure to furnish information shall not entitle the Contractor to an
equitable adjustment under the terms and
conditions of this contract.
(c) In addition to the final report, as defined at 1827.406–70(a)(3), submitted to the
contracting officer, a reproducible copy and
a printed or reproduced copy of the final report or data shall be concurrently submitted
to: Center for AeroSpace Information
(CASI), Attn: Document Processing Section,
7121 Standard Drive, Hanover, Maryland
21076–1320, Phone: 301–621–0390, FAX: 301–621–
0134.
(d) The last page of the final report submitted to CASI shall be a completed Standard Form (SF) 298, Report Documentation
Page. In addition to the copy of the final report, the contractor shall provide, to CASI, a
copy of the letter transmitting the final report to NASA for its Document Availability
Authorization (DAA) review.
(e) The contractor shall not release the
final report, outside of NASA, until the DAA
review has been completed by NASA and

KEY PERSONNEL AND FACILITIES (MAR 1989)
(a) The personnel and/or facilities listed
below (or specified in the contract Schedule)
are considered essential to the work being
performed under this contract. Before removing, replacing, or diverting any of the
listed or specified personnel or facilities, the
Contractor shall (1) notify the Contracting
Officer reasonably in advance and (2) submit
justification (including proposed substitutions) in sufficient detail to permit evaluation of the impact on this contract.
(b) The Contractor shall make no diversion
without the Contracting Officer’s written
consent; provided, that the Contracting Officer may ratify in writing the proposed
change, and that ratification shall constitute the Contracting Officer’s consent required by this clause.
(c) The list of personnel and/or facilities
(shown below or as specified in the contract
Schedule) may, with the consent of the contracting parties, be amended from time to
time during the course of the contract to add
or delete personnel and/or facilities.
[List here the personnel and/or facilities considered essential, unless they are specified in
the contract Schedule.]

(End of clause)
1852.235–72 Instructions for responding to NASA Research Announcements.
As prescribed in 1835.070(c), insert the
following provision:
INSTRUCTIONS FOR RESPONDING TO NASA
RESEARCH ANNOUNCEMENTS (OCT 2002)
(a) General.
(1) Proposals received in response to a
NASA Research Announcement (NRA) will
be used only for evaluation purposes. NASA
does not allow a proposal, the contents of
which are not available without restriction
from another source, or any unique ideas
submitted in response to an NRA to be used
as the basis of a solicitation or in negotiation with other organizations, nor is a preaward synopsis published for individual proposals.
(2) A solicited proposal that results in a
NASA award becomes part of the record of

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National Aeronautics and Space Administration
that transaction and may be available to the
public on specific request; however, information or material that NASA and the awardee
mutually agree to be of a privileged nature
will be held in confidence to the extent permitted by law, including the Freedom of Information Act.
(3) NRAs contain programmatic information and certain requirements which apply
only to proposals prepared in response to
that particular announcement. These instructions contain the general proposal preparation information which applies to responses to all NRAs.
(4) A contract, grant, cooperative agreement, or other agreement may be used to accomplish an effort funded in response to an
NRA. NASA will determine the appropriate
award instrument. Contracts resulting from
NRAs are subject to the Federal Acquisition
Regulation and the NASA FAR Supplement.
Any resultant grants or cooperative agreements will be awarded and administered in
accordance with the NASA Grant and Cooperative Agreement Handbook (NPG 5800.1).
(5) NASA does not have mandatory forms
or formats for responses to NRAs; however,
it is requested that proposals conform to the
guidelines in these instructions. NASA may
accept proposals without discussion; hence,
proposals should initially be as complete as
possible and be submitted on the proposers’
most favorable terms.
(6) To be considered for award, a submission must, at a minimum, present a specific
project within the areas delineated by the
NRA; contain sufficient technical and cost
information to permit a meaningful evaluation; be signed by an official authorized to
legally bind the submitting organization; not
merely offer to perform standard services or
to just provide computer facilities or services; and not significantly duplicate a more
specific current or pending NASA solicitation.
(b) NRA-Specific Items. Several proposal
submission items appear in the NRA itself:
the unique NRA identifier; when to submit
proposals; where to send proposals; number
of copies required; and sources for more information. Items included in these instructions may be supplemented by the NRA.
(c) The following information is needed to
permit consideration in an objective manner.
NRAs will generally specify topics for which
additional information or greater detail is
desirable. Each proposal copy shall contain
all submitted material, including a copy of
the transmittal letter if it contains substantive information.
(1) Transmittal Letter or Prefatory Material.
(i) The legal name and address of the organization and specific division or campus
identification if part of a larger organization;

1852.235–72

(ii) A brief, scientifically valid project title
intelligible to a scientifically literate reader
and suitable for use in the public press;
(iii) Type of organization: e.g., profit, nonprofit, educational, small business, minority,
women-owned, etc;
(iv) Name and telephone number of the
principal investigator and business personnel
who may be contacted during evaluation or
negotiation;
(v) Identification of other organizations
that are currently evaluating a proposal for
the same efforts;
(vi) Identification of the NRA, by number
and title, to which the proposal is responding;
(vii) Dollar amount requested, desired
starting date, and duration of project;
(viii) Date of submission; and
(ix) Signature of a responsible official or
authorized representative of the organization, or any other person authorized to legally bind the organization (unless the signature appears on the proposal itself).
(2) Restriction on Use and Disclosure of
Proposal Information. Information contained in proposals is used for evaluation
purposes only. Offerors or quoters should, in
order to maximize protection of trade secrets
or other information that is confidential or
privileged, place the following notice on the
title page of the proposal and specify the information subject to the notice by inserting
an appropriate identification in the notice.
In any event, information contained in proposals will be protected to the extent permitted by law, but NASA assumes no liability for use and disclosure of information not
made subject to the notice.
NOTICE—RESTRICTION ON USE AND DISCLOSURE
OF PROPOSAL INFORMATION
The information (data) contained in [insert
page numbers or other identification] of this
proposal constitutes a trade secret and/or information that is commercial or financial
and confidential or privileged. It is furnished
to the Government in confidence with the
understanding that it will not, without permission of the offeror, be used or disclosed
other than for evaluation purposes; provided,
however, that in the event a contract (or
other agreement) is awarded on the basis of
this proposal the Government shall have the
right to use and disclose this information
(data) to the extent provided in the contract
(or other agreement). This restriction does
not limit the Government’s right to use or
disclose this information (data0 if obtained
from another source without restriction.
(3) Abstract. Include a concise (200–300
word if not otherwise specified in the NRA)
abstract describing the objective and the
method of approach.
(4) Project Description.

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1852.235–72

48 CFR Ch. 18 (10–1–02 Edition)

(i) The main body of the proposal shall be
a detailed statement of the work to be undertaken and should include objectives and
expected significance; relation to the present
state of knowledge; and relation to previous
work done on the project and to related work
in progress elsewhere. The statement should
outline the plan of work, including the broad
design of experiments to be undertaken and
a description of experimental methods and
procedures. The project description should
address the evaluation factors in these instructions and any specific factors in the
NRA. Any substantial collaboration with individuals not referred to in the budget or use
of consultants should be described. Subcontracting significant portions of a research
project is discouraged.
(ii) When it is expected that the effort will
require more than one year, the proposal
should cover the complete project to the extent that it can be reasonably anticipated.
Principal emphasis should be on the first
year of work, and the description should distinguish clearly between the first year’s
work and work planned for subsequent years.
(5) Management Approach. For large or
complex
efforts
involving
interactions
among numerous individuals or other organizations, plans for distribution of responsibilities and arrangements for ensuring a coordinated effort should be described.
(6) Personnel. The principal investigator is
responsible for supervision of the work and
participates in the conduct of the research
regardless of whether or not compensated
under the award. A short biographical sketch
of the principal investigator, a list of principal publications and any exceptional qualifications should be included. Omit social security number and other personal items
which do not merit consideration in evaluation of the proposal. Give similar biographical information on other senior professional
personnel who will be directly associated
with the project. Give the names and titles
of any other scientists and technical personnel associated substantially with the
project in an advisory capacity. Universities
should list the approximate number of students or other assistants, together with information as to their level of academic attainment. Any special industry-university
cooperative arrangements should be described.
(7) Facilities and Equipment.
(i) Describe available facilities and major
items of equipment especially adapted or
suited to the proposed project, and any additional major equipment that will be required. Identify any Government-owned facilities, industrial plant equipment, or special tooling that are proposed for use. Include evidence of its availability and the
cognizant Government points of contact.
(ii) Before requesting a major item of capital equipment, the proposer should deter-

mine if sharing or loan of equipment already
within the organization is a feasible alternative. Where such arrangements cannot be
made, the proposal should so state. The need
for items that typically can be used for research and non-research purposes should be
explained.
(8) Proposed Costs (U.S. Proposals Only).
(i) Proposals should contain cost and technical parts in one volume: do not use separate ‘‘confidential’’ salary pages. As applicable, include separate cost estimates for salaries and wages; fringe benefits; equipment;
expendable materials and supplies; services;
domestic and foreign travel; ADP expenses;
publication or page charges; consultants;
subcontracts; other miscellaneous identifiable direct costs; and indirect costs. List salaries and wages in appropriate organizational categories (e.g., principal investigator, other scientific and engineering professionals, graduate students, research assistants, and technicians and other non-professional personnel). Estimate all staffing
data in terms of staff-months or fractions of
full-time.
(ii) Explanatory notes should accompany
the cost proposal to provide identification
and estimated cost of major capital equipment items to be acquired; purpose and estimated number and lengths of trips planned;
basis
for
indirect
cost
computation
(including date of most recent negotiation
and cognizant agency); and clarification of
other items in the cost proposal that are not
self-evident. List estimated expenses as
yearly requirements by major work phases.
(iii) Allowable costs are governed by FAR
Part 31 and the NASA FAR Supplement Part
1831 (and OMB Circulars A–21 for educational
institutions and A–122 for nonprofit organizations).
(iv) Use of NASA funds—NASA funding
may not be used for foreign research efforts
at any level, whether as a collaborator or a
subcontract. The direct purchase of supplies
and/or services, which do not constitute research, from non-U.S. sources by U.S award
recipients is permitted. Additionally, in accordance with the National Space Transportation Policy, use of a non-U.S. manufactured launch vehicle is permitted only on a
no-exchange-of-funds basis.
(9) Security. Proposals should not contain
security classified material. If the research
requires access to or may generate security
classified information, the submitter will be
required to comply with Government security regulations.
(10) Current Support. For other current
projects being conducted by the principal investigator, provide title of project, sponsoring agency, and ending date.
(11) Special Matters.
(i) Include any required statements of environmental impact of the research, human
subject or animal care provisions, conflict of

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National Aeronautics and Space Administration
interest, or on such other topics as may be
required by the nature of the effort and current statutes, executive orders, or other current Government-wide guidelines.
(iii) Proposers should include a brief description of the organization, its facilities,
and previous work experience in the field of
the proposal. Identify the cognizant Government audit agency, inspection agency, and
administrative contracting officer, when applicable.
(ii) Identify and discuss risk factors and
issues throughout the proposal where they
are relevant, and your approach to managing
these risks.
(d) Renewal Proposals.
(1) Renewal proposals for existing awards
will be considered in the same manner as
proposals for new endeavors. A renewal proposal should not repeat all of the information that was in the original proposal. The
renewal proposal should refer to its predecessor, update the parts that are no longer
current, and indicate what elements of the
research are expected to be covered during
the period for which support is desired. A description of any significant findings since
the most recent progress report should be included. The renewal proposal should treat, in
reasonable detail, the plans for the next period, contain a cost estimate, and otherwise
adhere to these instructions.
(2) NASA may renew an effort either
through amendment of an existing contract
or by a new award.
(e) Length. Unless otherwise specified in
the NRA, effort should be made to keep proposals as brief as possible, concentrating on
substantive material. Few proposals need exceed 15–20 pages. Necessary detailed information, such as reprints, should be included as
attachments. A complete set of attachments
is necessary for each copy of the proposal. As
proposals are not returned, avoid use of
‘‘one-of-a-kind’’ attachments.
(f) Joint Proposals.
(1) Where multiple organizations are involved, the proposal may be submitted by
only one of them. It should clearly describe
the role to be played by the other organizations and indicate the legal and managerial
arrangements contemplated. In other instances, simultaneous submission of related
proposals from each organization might be
appropriate, in which case parallel awards
would be made.
(2) Where a project of a cooperative nature
with NASA is contemplated, describe the
contributions expected from any participating NASA investigator and agency facilities or equipment which may be required.
The proposal must be confined only to that
which the proposing organization can commit itself. ‘‘Joint’’ proposals which specify
the internal arrangements NASA will actually make are not acceptable as a means of
establishing an agency commitment.

1852.235–72

(g) Late Proposals. Proposals or proposal
modifications received after the latest date
specified for receipt may be considered if a
significant reduction in cost to the Government is probable or if there are significant
technical advantages, as compared with proposals previously received.
(h) Withdrawal. Proposals may be withdrawn by the proposer at any time before
award. Offerors are requested to notify
NASA if the proposal is funded by another
organization or of other changed circumstances which dictate termination of
evaluation.
(i) Evaluation Factors
(1) Unless otherwise specified in the NRA,
the principal elements (of approximately
equal weight) considered in evaluating a proposal are its relevance to NASA’s objectives,
intrinsic merit, and cost.
(2) Evaluation of a proposal’s relevance to
NASA’s objectives includes the consideration of the potential contribution of the effort to NASA’s mission.
(3) Evaluation of its intrinsic merit includes the consideration of the following factors of equal importance:
(i) Overall scientific or technical merit of
the proposal or unique and innovative methods, approaches, or concepts demonstrated
by the proposal.
(ii) Offeror’s capabilities, related experience, facilities, techniques, or unique combinations of these which are integral factors
for achieving the proposal objectives.
(iii) The qualifications, capabilities, and
experience of the proposed principal investigator, team leader, or key personnel critical
in achieving the proposal objectives.
(iv) Overall standing among similar proposals and/or evaluation against the state-ofthe-art.
(4) Evaluation of the cost of a proposed effort may include the realism and reasonableness of the proposed cost and available funds.
(j) Evaluation Techniques. Selection decisions will be made following peer and/or scientific review of the proposals. Several evaluation techniques are regularly used within
NASA. In all cases proposals are subject to
scientific review by discipline specialists in
the area of the proposal. Some proposals are
reviewed entirely in-house, others are evaluated by a combination of in-house and selected external reviewers, while yet others
are subject to the full external peer review
technique (with due regard for conflict-of-interest and protection of proposal information), such as by mail or through assembled
panels. The final decisions are made by a
NASA selecting official. A proposal which is
scientifically and programmatically meritorious, but not selected for award during its
initial review, may be included in subsequent reviews unless the proposer requests
otherwise.
(k) Selection for Award.

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1852.236–71

48 CFR Ch. 18 (10–1–02 Edition)

(1) When a proposal is not selected for
award, the proposer will be notified. NASA
will explain generally why the proposal was
not selected. Proposers desiring additional
information may contact the selecting official who will arrange a debriefing.
(2) When a proposal is selected for award,
negotiation and award will be handled by the
procurement office in the funding installation. The proposal is used as the basis for negotiation. The contracting officer may request certain business data and may forward
a model award instrument and other information pertinent to negotiation.
(l) Additional Guidelines Applicable to
Foreign Proposals and Proposals Including
Foreign Participation
(1) NASA welcomes proposals from outside
the U.S. However, foreign entities are generally not eligible for funding from NASA.
Therefore, unless otherwise noted in the
NRA, proposals from foreign entities should
not include a cost plan unless the proposal
involves collaboration with a U.S. institution, in which case a cost plan for only the
participation of the U.S. entity must be included. Proposals from foreign entities and
proposals from U.S. entities that include foreign participation must be endorsed by the
respective government agency or funding/
sponsoring institution in the country from
which the foreign entity is proposing. Such
endorsement should indicate that the proposal merits careful consideration by NASA,
and if the proposal is selected, sufficient
funds will be made available to undertake
the activity as proposed.
(2) All foreign proposals must be typewritten in English and comply with all other
submission requirements stated in the NRA.
All foreign proposals will undergo the same
evaluation and selection process as those
originating in the U.S. All proposals must be
received before the established closing date.
Those received after the closing date will be
treated in accordance with paragraph (g) of
this provision. Sponsoring foreign government agencies or funding institutions may,
in exceptional situations, forward a proposal
without endorsement if endorsement is not
possible before the announced closing date.
In such cases, the NASA sponsoring office
should be advised when a decision on endorsement can be expected.
(3) Successful and unsuccessful foreign entities will be contacted directly by the NASA
sponsoring office. Copies of these letters will
be sent to the foreign sponsor. Should a foreign proposal or a U.S. proposal with foreign
participation be selected, NASA’s Office of
External Relations will arrange with the foreign sponsor for the proposed participation
on a no-exchange-of-funds basis, in which
NASA and the non-U.S. sponsoring agency or
funding institution will each bear the cost of
discharging their respective responsibilities.

(4) Depending on the nature and extent of
the proposed cooperation, these arrangements may entail:
(i) An exchange of letters between NASA
and the foreign sponsor; or
(ii) A formal Agency-to-Agency Memorandum of Understanding (MOU).
(m) Cancellation of NRA. NASA reserves
the right to make no awards under this NRA
and to cancel this NRA. NASA assumes no liability for canceling the NRA or for anyone’s
failure to receive actual notice of cancellation.
[62 FR 4475, Jan. 30, 1997, as amended at 64
FR 48561, Sept. 7, 1999; 65 FR 3153, Jan. 20,
2000; 67 FR 30604, May 7, 2002; 67 FR 61520,
Oct. 1, 2002]

1852.236–71
items.

Additive

or

deductive

As prescribed in 1836.570(a), insert the
following provision:
ADDITIVE OR DEDUCTIVE ITEMS (MAR 1989)
(a) The low bidder for purposes of award
shall be the conforming responsible bidder
offering the low aggregate amount for the
first or base bid item, plus or minus (in order
of priority listed in the Schedule) those additive or deductive bid items providing the
most features of the work within the funds
determined by the Government to be available before bids are opened. If addition of another bid item in the listed order of priority
would make the award exceed those funds for
all bidders, it shall be skipped and the next
subsequent additive bid item in a lower
amount shall be added for each bid if award
on it can be made within the funds.
(b) An example for one bid is an amount
available of $100,000, a bidder’s base bid of
$85,000, and four successive additives of
$10,000, $8,000, $6,000, and $4,000. In this example, the aggregate amount of the bid for purposes of award would be $99,000 for the base
bid plus the first and fourth additives, the
second and third additives being skipped because either of them would cause the aggregate bid to exceed $100,000.
(c) All bids shall be evaluated on the basis
of the same additive or deductive bid items.
The listed order of priority must be followed
only for determining the low bidder. After
determination of the low bidder, award in
the best interests of the Government may be
made to that bidder on its base bid and any
combination of its additive or deductive bid
items for which funds are determined to be
available at the time of the award, provided
that award of the combination of bid items
does not exceed the amount offered by any
other conforming responsible bidder for the
same combination of bid items.

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National Aeronautics and Space Administration

1852.236–75

(End of provision)

(End of provision)

[54 FR 28340, July 5, 1989, as amended at 62
FR 4476, Jan. 30, 1997]

[54 FR 28340, July 5, 1989, as amended at 62
FR 4476, Jan. 30, 1997]

1852.236–72

1852.236–75 Partnering for construction contracts.

Bids with unit prices.

As prescribed in 1836.570(b), insert the
following provision:
BIDS WITH UNIT PRICES (MAR 1989)
(a) All extensions of the unit prices bid will
be subject to verification by the Government. If there is variation between the unit
price and any extended amounts, the unit
price will be considered to be the bid.
(b) If a modification to a bid based on unit
prices that provides for a lump-sum adjustment to the total estimated cost is submitted, the application of the lump sum adjustment to each unit price in the bid must
be stated. If it is not stated, the lump-sum
adjustment shall be applied on a pro rata
basis to every unit price in the bid.

(End of provision)
[54 FR 28340, July 5, 1989, as amended at 62
FR 4476, Jan. 30, 1997]

1852.236–73

Hurricane plan.

As prescribed in 1836.570(c), insert the
following clause:
HURRICANE PLAN (DEC 1988)
In the event of a hurricane warning, the
Contractor shall—
(a) Inspect the area and place all materials
possible in a protected location;
(b) Tie down, or identify and store, all outside equipment and materials;
(c) Clear all surrounding areas and roofs of
buildings, or tie down loose material, equipment, debris, and any other objects that
could otherwise be blown away or blown
against existing buildings; and
(d) Ensure that temporary erosion controls
are adequate.

(End of clause)
[54 FR 28340, July 5, 1989, as amended at 62
FR 4476, Jan. 30, 1997]

1852.236–74
ment.

Magnitude

of

require-

As prescribed in 1836.570(d), insert the
following provision:

As prescribed in 1836.7004, insert the
following clause:
PARTNERING FOR CONSTRUCTION CONTRACTS
(AUG 1998)
(a)
The
terms
‘‘partnering’’
and
‘‘partnership’’ used herein shall mean a relationship of open communication and close
cooperation that involves both Government
and Contractor personnel working together
for the purpose of establishing a mutually
beneficial, proactive, cooperative environment within which to achieve contract objectives and resolve issues and implementing
actions as required.
(b) Partnering will be a voluntary commitment mutually agreed upon by at least
NASA and the prime contractor, and preferably the subcontractors and the A&E design contractor, if applicable. Sustained
commitment to the process is essential to
assure success of the relationship.
(c) NASA intends to facilitate contract
management by encouraging the foundation
of a cohesive partnership with the Contractor, its subcontractors, the A&E design
contractor, and NASA’s contract management staff. This partnership will be structured to draw on the strengths of each organization to identify and achieve mutual objectives. The objectives are intended to complete the contract requirements within budget, on schedule, and in accordance with the
plans and specifications.
(d) To implement the partnership, it is anticipated that within 30 days of the Notice to
Proceed the prime Contractor’s key personnel, its subcontractors, the A&E design
contractor, and NASA personnel will attend
a partnership development and team building workshop. Follow-up team building
workshops will be held periodically throughout the duration of the contract as agreed to
by the Government and the Contractor.
(e) Any cost with effectuating the partnership will be agreed to in advance by both
parties and will be shared with no change in
the contract price. The contractor’s share of
the costs are not recoverable under any
other Government award.

MAGNITUDE OF REQUIREMENT (DEC 1988)

(End of clause)

The Government estimated price range of
this project is between $llll and
$llll. [Insert the estimated dollar range.]

[63 FR 44171, Aug. 18, 1998]

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1852.237–70

48 CFR Ch. 18 (10–1–02 Edition)

1852.237–70 Emergency
evacuation
procedures.
As prescribed at 1837.110–70(a), insert
the following clause:
EMERGENCY EVACUATION PROCEDURES (DEC
1988)
The contractor shall assure that its personnel at Government facilities are familiar
with the functions of the Government’s
emergency evacuation procedures. If requested by the Contracting Officer, the Contractor shall designate an individual or individuals as contact points to provide for efficient and rapid evacuation of the facility if
and when required.

(End of clause)
[54 FR 28340, July 5, 1989, as amended at 54
FR 39376, Sept. 26, 1989; 62 FR 4476, Jan. 30,
1997]

1852.237–71 Pension portability.
As prescribed at 1837.110–70(b), insert
the following clause:
PENSION PORTABILITY (JAN 1997)
(a) In order for pension costs attributable
to employees assigned to this contract to be
allowable costs under this contract, the
plans covering such employees must:
(1) Comply with all applicable Government
laws and regulations;
(2) Be a defined contribution plan, or a
multiparty defined benefit plan operated
under a collective bargaining agreement. In
either case, the plan must be portable, i.e.,
the plan follows the employee, not the employer;
(3) Provide for 100 percent employee vesting at the earlier of one year of continuous
employee service or contract termination;
and
(4) Not be modified, terminated, or a new
plan adopted without the prior written approval of the cognizant NASA Contracting
Officer.
(b) The Contractor shall include paragraph
(a) of this clause in subcontracts for continuing services under a service contract if:
(1) The prime contract requires pension
portability;
(2) The subcontracted labor dollars
(excluding any burdens or profit/fee) exceed
$2,500,000 and ten percent of the total prime
contract labor dollars (excluding any burdens or profit/fee); and
(3) Either of the following conditions exists:
(i) There is a continuing need for the same
or similar subcontract services for a minimum of five years (inclusive of options), and
if the subcontractor changes, a high percentage of the predecessor subcontractor’s em-

ployees are expected to remain with the program; or
(ii) The employees under a predecessor subcontract were covered by a portable pension
plan, a follow-on subcontract or a subcontract consolidating existing services is
awarded, and the total subcontract period
covered by the plan covers a minimum of
five years (including both the predecessor
and successor subcontracts).

(End of clause)
[62 FR 4477, Jan. 30, 1997]

§ 1852.239–70 Alternate
delivery
points.
As prescribed in 1839.106–70(a)(1), insert the following clause:
ALTERNATE DELIVERY POINTS (NOV 1993)
(a) The first priority of this contract is to
satisfy the anticipated requirements of ll
(identify contracting activity). However,
should the actual requirements of ll
(contracting activity) be less than the maximum quantities/values specified in section
B of this contract, ll (contracting activity)
may order the remaining available quantities/values to satisfy the requirements of
other installations. The other installations
at which delivery may be required are:
(List installations and their locations)
(b) The prices of the deliverables in section
B are F.O.B. destination to ll (contracting
activity). If delivery to an alternate location
is ordered, an equitable adjustment may be
negotiated to recognize any variances in
transportation costs associated with delivery
to that alternate location.

(End of clause)
Alternate I (NOV 1993). As prescribed
in 1839.7008(b), delete paragraph (b) and
substitute the following:
(b) The prices of the deliverables in section
B are F.O.B. origin with delivery to NASA
via Government bill of lading (GBL). If delivery to an alternate location is ordered, the
same delivery procedures will be used and no
equitable adjustment to any price, term, or
condition of this contract will be made as a
result of such order.

(End of clause)
[58 FR 59189, Nov. 8, 1993; 58 FR 62556, Nov. 29,
1993, as amended at 62 FR 4477, Jan. 30, 1997;
62 FR 36735, July 9, 1997]

1852.241–70 Renewal of contract.
As prescribed in 48 CFR 1841.501–70,
insert the following clause:

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National Aeronautics and Space Administration
RENEWAL OF CONTRACT (DEC 1988)
This contract is renewable on an annual
basis at the option of the Government, by
the Contracting Officer giving written notice
of renewal to the Contractor at least
lllll days before expiration. If the Government exercises this option for renewal,
the contract as renewed shall be deemed to
include this option provision. However, the
total duration of this contract, including the
exercise of any options under this clause,
shall not exceed lllll years.

(End of clause)
[54 FR 28340, July 5, 1989, as amended at 56
FR 12460, Mar. 26, 1991. Redesignated and
amended at 60 FR 16063, Mar. 29, 1995; 62 FR
4477, Jan. 30, 1997]

1852.242–70 Technical direction.
As prescribed in 1842.271, insert the
following clause:
TECHNICAL DIRECTION (SEP 1993)
(a) Performance of the work under this
contract is subject to the written technical
direction of the Contracting Officer Technical Representative (COTR), who shall be
specifically appointed by the Contracting Officer in writing in accordance with NASA
FAR Supplement 1842.270. ‘‘Technical direction’’ means a directive to the Contractor
that approves approaches, solutions, designs,
or refinements; fills in details or otherwise
completes the general description of work or
documentation items; shifts emphasis among
work areas or tasks; or furnishes similar instruction to the Contractor. Technical direction includes requiring studies and pursuit of
certain lines of inquiry regarding matters
within the general tasks and requirements in
Section C of this contract.
(b) The COTR does not have the authority
to, and shall not, issue any instruction purporting to be technical direction that—
(1) Constitutes an assignment of additional
work outside the statement of work;
(2) Constitutes a change as defined in the
changes clause;
(3) Constitutes a basis for any increase or
decrease in the total estimated contract
cost, the fixed fee (if any), or the time required for contract performance;
(4) Changes any of the expressed terms,
conditions, or specifications of the contract;
or
(5) Interferes with the contractor’s rights
to perform the terms and conditions of the
contract.
(c) All technical direction shall be issued
in writing by the COTR.
(d) The Contractor shall proceed promptly
with the performance of technical direction
duly issued by the COTR in the manner pre-

1852.242–71

scribed by this clause and within the COTR’s
authority. If, in the Contractor’s opinion,
any instruction or direction by the COTR
falls within any of the categories defined in
paragraph (b) of this clause, the Contractor
shall not proceed but shall notify the Contracting Officer in writing within 5 working
days after receiving it and shall request the
Contracting Officer to take action as described in this clause. Upon receiving this
notification, the Contracting Officer shall either issue an appropriate contract modification within a reasonable time or advise the
Contractor in writing within 30 days that the
instruction or direction is—
(1) Rescinded in its entirety; or
(2) Within the requirements of the contract
and does not constitute a change under the
Changes clause of the contract, and that the
Contractor should proceed promptly with its
performance.
(e) A failure of the Contractor and the Contracting Officer to agree that the instruction
or direction is both within the requirements
of the contract and does not constitute a
change under the Changes clause, or a failure
to agree upon the contract action to be
taken with respect to the instruction or direction, shall be subject to the Disputes
clause of this contract.
(f) Any action(s) taken by the contractor
in response to any direction given by any
person other than the Contracting Officer or
the COTR shall be at the Contractor’s risk.

(End of clause)
[54 FR 28340, July 5, 1989, as amended at 56
FR 32119, July 15, 1991; 59 FR 21668, Apr. 26,
1994; 62 FR 36735, July 9, 1997]

1852.242–71 Travel
United States.

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the

As prescribed in 1842.7002, insert the
following clause:
TRAVEL OUTSIDE OF THE UNITED STATES (DEC
1988)
(a) The Contracting Officer must authorize
in advance and in writing travel to locations
outside of the United States by Contractor
employees that is to be charged as a cost to
this contract. This approval may be granted
when the travel is necessary to the efforts
required under the contract and it is otherwise in the best interest of NASA.
(b) The Contractor shall submit requests to
the Contracting Officer at least 30 days in
advance of the start of the travel.
(c) The Contractor shall submit a travel report at the conclusion of the travel. The
Contracting Officer’s approval of the travel
will specify the required contents and distribution of the travel report.

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1852.242–72

48 CFR Ch. 18 (10–1–02 Edition)
(End of clause)

work on-site, unless otherwise instructed by
the Contracting Officer.

[54 FR 28340, July 5, 1989, as amended at 55
FR 27090, June 29, 1990; 56 FR 12460, Mar. 26,
1991]

Alternate II (OCT 2000). As prescribed
in 1842.7001(c), add the following as
paragraphs (e) and (f) if Alternate I is
used, or as paragraphs (c) and (d) if Alternate I is not used. If added as paragraphs (c) and (d), amend the first sentence of paragraph (d) by deleting ‘‘(e)’’
and adding ‘‘(c)’’ in its place.

1852.242–72
days.

Observance of legal holi-

As prescribed in 1842.7001(a), insert
the following clause:
OBSERVANCE OF LEGAL HOLIDAYS (AUG 1992)
(a) The on-site Government personnel observe the following holidays:
New Year’s Day
Labor Day
Martin Luther King, Jr.’s Birthday
Columbus Day
President’s Birthday
Veterans Day
Memorial Day
Thanksgiving Day
Independence Day
Christmas Day
Any other day designated by Federal statute, Executive Order, or the President’s
proclamation.
(b) When any holiday falls on a Saturday,
the preceding Friday is observed. When any
holiday falls on a Sunday, the following
Monday is observed. Observance of such days
by Government personnel shall not by itself
be cause for an additional period of performance or entitlement of compensation except
as set forth within the contract.

(End of clause)
Alternate I (SEP 1989). As prescribed
in 1842.7001(b), add the following paragraphs (c) and (d) as Alternate I to the
clause.
(c) On-site personnel assigned to this contract shall not be granted access to the installation during the holidays in paragraph
(a) of the clause, except as follows: the Contractor shall provide sufficient on-site personnel to perform round-the-clock requirements of critical work already in process,
unless otherwise instructed by the Contracting Officer or authorized representative. If the Contractor’s on-site personnel
work during a holiday other than those in
paragraph (a) of the clause, no form of holiday or other premium compensation shall be
reimbursed as either a direct or indirect
cost. However, this does not preclude reimbursement for authorized overtime work
that would have been overtime regardless of
the status of the day as a holiday.
(d) The Contractor shall place identical requirements, including this paragraph, in all
subcontracts that require performance of

(e) When the NASA installation grants administrative leave to its Government employees (e.g., as a result of inclement weather, potentially hazardous conditions, or
other special circumstances), Contractor
personnel working on-site should also be dismissed. However, the contractor shall provide sufficient onsite personnel to perform
round-the-clock requirements of critical
work already in process, unless otherwise instructed by the Contracting Officer or authorized representative.
(f) Whenever administrative leave is granted to Contractor personnel pursuant to paragraph (e) of this clause, it shall be without
loss to the Contractor. The cost of salaries
and wages to the Contractor for the period of
any such excused absence shall be a reimbursable item of cost under this contract for
employees in accordance with the Contractor’s established accounting policy.
[54 FR 39376, Sept. 26, 1989, as amended at 57
FR 40856, Sept. 8, 1992; 62 FR 36735, July 9,
1997; 63 FR 32764, June 16, 1998; 65 FR 58932,
Oct. 3, 2000]

1852.242–73 NASA contractor financial
management reporting.
As prescribed in 1842.7202, insert the
following clause:
NASA CONTRACTOR FINANCIAL MANAGEMENT
REPORTING (JUL 2000)
(a) The Contractor shall submit NASA
Contractor Financial Management Reports
on NASA Forms 533 in accordance with the
instructions in NASA Procedures and Guidelines (NPG) 9501.2, NASA Contractor Financial Management Reporting, and on the reverse side of the forms, as supplemented in
the Schedule of this contract. The detailed
reporting categories to be used, which shall
correlate with technical and schedule reporting, shall be set forth in the Schedule. Contractor implementation of reporting requirements under this clause shall include NASA
approval of the definitions of the content of
each reporting category and give due regard
to the Contractor’s established financial
management information system.
(b) Lower level detail used by the Contractor for its own management purposes to

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National Aeronautics and Space Administration
validate information provided to NASA shall
be compatible with NASA requirements.
(c) Reports shall be submitted in the number of copies, at the time, and in the manner
set forth in the Schedule or as designated in
writing by the Contractor Officer. Upon completion and acceptance by NASA of all contract line items, the Contracting Officer may
direct the Contractor to submit Form 533 reports on a quarterly basis only, report only
when changes in actual cost incur, or suspend reporting altogether.
(d) The Contractor shall ensure that its
Form 533 reports include accurate subcontractor cost data, in the proper reporting
categories, for the reporting period.
(e) If during the performance of this contract NASA requires a change in the information or reporting requirements specified
in the Schedule, or as provided for in paragraph (a) or (c) of this clause, the Contracting Officer shall effect that change in
accordance with the Changes clause of this
contract.

1852.242–75

(iv) Describe the proposed procedure for
administration of the criteria as applied to
subcontractors; and
(v) Provide documentation describing the
process and results of any third-party or selfevaluation of the system’s compliance with
EVMS criteria.
(2) The Government will review the
offeror’s plan for EVMS before contract
award. The offeror shall provide information
and assistance as required by the Contracting Officer to support review of the
plan.
(c) Offerors shall identify in their proposals the major subcontractors, or major
subcontracted efforts if major subcontractors have not been selected, planned for application of EVMS. The prime contractor
and the Government shall agree to subcontractors selected for application of
EVMS.

(End of provision)
[64 FR 10574, Mar. 5, 1999]

(End of clause)
[62 FR 36735, July 9, 1997; 62 FR 40309, July 28,
1997, as amended at 65 FR 46628, July 31, 2000]

1852.242–74 Notice of Earned Value
Management System.
As prescribed in 1842.7402(a)(1), insert
the following provision:
NOTICE OF EARNED VALUE MANAGEMENT
SYSTEM (MAR 1999)
(a) The offeror shall provide documentation that the cognizantAdministrative Contracting Officer (ACO) has recognized that:
(1) The proposed earned value management
system (EVMS) complies with the EVMS criteria of NASA Policy Directive (NPD) 9501.3,
Earned Value Management, or DoD 5000.2–R,
Mandatory Procedures for Major Defense Acquisition Programs and Major Automated Information Systems Acquisition Programs; or
(2) The company EVM system conforms
with the full intentions of the guidelines presented in ANSI/EIA Standard 748, Industry
Guidelines for Earned Value Management
Systems.
(b) If the offeror proposes to use a system
that does not meet the requirements of paragraph (a) of this provision, the successful offeror shall submit a plan for compliance with
the NASA EVM criteria as described in NPD
9501.3.
(1) The plan shall—
(i) Describe the EVMS the offeror intends
to use in performance of the contract;
(ii) Distinguish between the offeror’s existing management system and modifications
proposed to meet the criteria;
(iii) Describe the management system and
its application in terms of the criteria;

1852.242–75 Earned Value Management Systems.
As prescribed at 1842.7402(a)(2), insert
the following clause:
EARNED VALUE MANAGEMENT SYSTEM (MAR
1999)
(a) In the performance of this contract, the
Contractor shall use:
(1) An earned value management system
(EVMS) that has been recognized by the cognizant Administrative Contracting Officer
(ACO) as complying with the criteria provided in NASA Policy Directive 9501.3,
Earned Value Management, or DoD 5000.2-R,
Mandatory Procedures for Major Defense Acquisition Programs and Major Automated Information Systems Acquisition Programs; or
(2) A company EVMS that the ACO has
recognized as conforming with the full intentions of the guidelines presented in ANSI/
EIA Standard 748, Industry Guidelines for
Earned Value Management Systems.
(b) If, at the time of award, the Contractor’s EVMS has not been recognized by the
cognizant ACO per paragraph (a) of this
clause or the Contractor does not have an existing cost schedule control system (C/SCS)
that has been accepted by the Government,
the Contractor shall apply the Contractor’s
EVMS to the contract and be prepared to
demonstrate to the ACO that its system
complies with the EVMS criteria referenced
in paragraph (a) of this clause.
(c) The Government may require integrated baseline reviews. Such reviews shall
be scheduled as early as practicable and
should be conducted within 180 calendar days
after contract award, exercise of significant
contract options, or incorporation of major

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1852.242–76

48 CFR Ch. 18 (10–1–02 Edition)

contract modifications. The objective of the
integrated baseline review is for the Government and the Contractor to jointly assess
areas, such as the Contractor’s planning, to
ensure complete coverage of the statement
of work, logical scheduling of the work activities, adequate resourcing, and identification of inherent risks.
(d) Unless a waiver is granted by the ACO,
Contractor proposed EVMS changes require
approval of the ACO prior to implementation.
The ACO shall advise the Contractor of the
acceptability of such changes within 30 calendar days after receipt of the notice of proposed changes from the Contractor. If the advance approval requirements are waived by
the ACO, the Contractor shall disclose EVMS
changes to the ACO and provide an information copy to the NASA Contracting Officer
at least 14 calendar days prior to the effective date of implementation.
(e) The Contractor agrees to provide access
to all pertinent records and data requested
by the ACO or a duly authorized representative. Access is to permit Government surveillance to ensure that the EVMS complies,
and continues to comply, with the criteria
referenced in paragraph (a) of this clause.
(f) The Contractor shall require the subcontractors specified below to comply with
the requirements of this clause: (Insert list
of applicable subcontractors)

(End of clause)
[64 FR 10575, Mar. 5, 1999]

1852.242–76 Modified
ance Report.

Cost

Perform-

As prescribed in 1842.7402(b), insert
the following clause:
MODIFIED COST PERFORMANCE REPORT (MAR
1999)
(a) The Contractor shall use management
procedures in the performance of this contract that provide for:
(1) Planning and control of costs;
(2) Measurement of performance (value for
completed tasks); and
(3) Generation of timely and reliable information for the Modified Cost Performance
Report (M/CPR).
(b) As a minimum, these procedures must
provide for:
(1) Establishing the time-phase budgeted
cost of work scheduled (including work authorization, budgeting, and scheduling), the
budgeted cost for work performed, the actual
cost of work performed, the budget at completion, the estimate at completion, and provisions for subcontractor performance measurement and reporting;

(2) Applying all direct and indirect costs
and provisions for use and control of management reserve and undistributed budget;
(3) Incorporating changes to the contract
budget base for both Government directed
changes and internal replanning;
(4) Establishing constraints to preclude
subjective adjustment of data to ensure performance measurement remains realistic.
The total allocated budget may exceed the
contract budget base only after consultation
with the Contracting Officer. For cost-reimbursement contracts, the contract budget
base shall exclude changes for cost growth
increases, other than for authorized changes
to the contract scope; and
(5) Establishing the capability to accurately identify and explain significant cost
and schedule variances, both on a cumulative basis and a projected-at-completion
basis.
(c) The Contractor may use a cost/schedule
control system that has been recognized by
the cognizant Administrative Contracting
Officer (ACO) as:
(1) Complying with the earned value management system criteria provided in NASA
Policy Directive 9501.3, Earned Value Management, or DoD 5000.2–R, Mandatory Procedures for Major Defense Acquisition Programs and Major Automated Information
Systems Acquisition Programs; or
(2) Conforming with the full intentions of
the guidelines presented in ANSI/EIA Standard 748, Industry Guidelines for Earned
Value Management Systems.
(d) The Government may require integrated baseline reviews. Such reviews shall
be scheduled as early as practicable and
should be conducted within 180 calendar days
after contract award, exercise of significant
contract options, or incorporation of major
modifications. The objective of the integrated baseline review is for the Government
and the Contractor to jointly assess areas,
such as the Contractor’s planning, to ensure
complete coverage of the statement of work,
logical scheduling of the work activities,
adequate resourcing, and identification of inherent risks.
(e) The Contractor shall provide access to
all pertinent records, company procedures,
and data requested by the ACO, or authorized representative, to:
(1) Show proper implementation of the procedures generating the cost and schedule information being used to satisfy the M/CPR
contractual data requirements to the Government; and
(2) Ensure continuing application of the accepted company procedures in satisfying the
M/CPR data item.
(f) The Contractor shall submit any substantive changes to the procedures and their
impact to the ACO for review.
(g) The Contractor shall require a subcontractor to furnish M/CPR in each case where

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National Aeronautics and Space Administration
the subcontract is other than firm-fixedprice, time-and-materials, or labor-hour; is
12 months or more in duration; and has critical or significant tasks related to the prime
contract. Critical or significant tasks shall
be defined by mutual agreement between the
Government and Contractor. Each subcontractor’s reported cost and schedule information shall be incorporated into the
Contractor’s M/CPR.

(End of clause)
[64 FR 10575, Mar. 5, 1999]

1852.242–77 Modified Cost
ance Report Plans.

1852.243–70

EMERGENCY MEDICAL SERVICES AND
EVACUATION—APRIL 2001
The Contractor shall, at its own expense,
be responsible for making all arrangements
for emergency medical services and evacuation, if required, for its employees while
performing work under this contract outside
the United States or in remote locations in
the United States. If necessary to deal with
certain emergencies, the Contractor may request the Government to provide medical or
evacuation services. If the Government provides such services, the Contractor shall reimburse the Government for the costs incurred.

Perform-

As prescribed in 1842.7402(c), insert
the following provision;

(End of clause)
[66 FR 18054, Apr. 5, 2001]

1852.243–70
posals.

MODIFIED COST PERFORMANCE PLANS (MAR
1999)
(a) The offeror shall submit in its proposal
a written summary of the management procedures it will establish, maintain, and use
in the performance of any resultant contract
to comply with the requirements of the
clause at 1852.242–76, Modified Cost Performance Report.
(b) The offeror may propose to use a cost/
schedule control system that has been recognized by the cognizant Administrative Contracting Officer as:
(1) Complying with the earned value management system criteria of NASA Policy Directive 9501.3, Earned Value Management, or
DoD 5000.2–R, Mandatory Procedures for
Major Defense Acquisition Programs and
Major Automated Information Systems Acquisition Programs; or
(2) Conforming with the full intentions of
the guidelines presented in ANSI/EIA Standard 748, Industry Guidelines for Earned
Value Management Systems. In such cases,
the offeror may submit a copy of the documentation of such recognition instead of the
written summary required by paragraph (a)
of this provision.

(End of provision)
[64 FR 10575, Mar. 5, 1999]

1852.242–78 Emergency Medical Services and Evacuation.
As prescribed in 1842.7003, insert the
following clause:

Engineering change pro-

As prescribed in 1843.205–70(a)(1), insert the following clause, modified to
suit contract type:
ENGINEERING CHANGE PROPOSALS (FEB 1998)
(a) Definitions.
‘‘ECP’’ means an Engineering Change Proposal (ECP) which is a proposed engineering
change and the documentation by which the
change is described, justified, and submitted
to the procuring activity for approval or disapproval.
(b) Either party to the contract may originate ECPs. Implementation of an approved
ECP may occur by either a supplemental
agreement or, if appropriate, as a written
change order to the contract
(c) Any ECP submitted to the Contracting
Officer shall include a ‘‘not-to-exceed’’ lll
[price or estimated cost] increase or decrease
adjustment amount, if any, and the required
[time of delivery or period of performance]
adjustment, if any, acceptable to the originator of the ECP. If the change is originated
within the Government, the Contracting Officer shall obtain a written agreement with
the Contractor regarding the ‘‘not-to-exceed’’ lll [price or estimated cost] and
[delivery or period of performance] adjustments, if any, prior to issuing an order for
implementation of the change.
(d) After submission of a Contractor initiated ECP, the Contracting Officer may require the Contractor to submit the following
information:
(1) Cost or pricing data in accordance with
FAR 15.403–5 if the proposed change meets
the criteria for its submission under FAR
15.403–4; or

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1852.243–71

48 CFR Ch. 18 (10–1–02 Edition)

(2) Information other than cost or pricing
data adequate for Contracting Officer determination of price reasonableness or cost realism. The Contracting Officer reserves the
right to request additional information if
that provided by the Contractor is considered inadequate for that purpose. If the Contractor claims applicability of one of the exceptions to submission of cost or pricing
data, it shall cite the exception and provide
rationale for its applicability.
(e) If the ECP is initiated by NASA, the
Contracting Officer shall specify the cost information requirements, if any.

(End of clause)
Alternate I (JUL 1997). As prescribed
in 1843.205–70(a)(2), add the following
paragraph (f), modified to suit contract
type, to the basic clause:
(f) If the ll [price or estimated cost] adjustment proposed for any contractor-originated ECP is ll [insert a percent or dollar
amount of the contract price or estimated
cost] or less, the ECP shall be executed with
no adjustment to the contract ll [price or
estimated cost].

Alternate II (SEPT 1990). As prescribed in 1843.205–70(a)(3), add the following sentence at the end of paragraph (c) of the basic clause:
An ECP accepted in accordance with the
Changes clause of this contract shall not be
considered an authorization to the Contractor to exceed the estimated cost in the
contract Schedule, unless the estimated cost
is increased by the change order or other
contract modification.
[62 FR 14033, Mar. 25, 1997, as amended at 62
FR 36735, July 9, 1997; 62 FR 40309, July 28,
1997; 63 FR 9966, Feb. 27, 1998; 63 FR 11480,
Mar. 9, 1998; 63 FR 17339, Apr. 9, 1998]

1852.243–71 Shared savings.
As prescribed in 1843.7102, insert the
following clause:
SHARED SAVINGS (MAR 1997)
(a) The Contractor is entitled, under the
provisions of this clause, to share in cost
savings resulting from the implementation
of cost reduction projects which are presented to the Government in the form of
Cost Reduction Proposals (CRP) and approved by the Contracting Officer. These
cost reduction projects may require changes
to the terms, conditions or statement of
work of this contract. Any cost reduction
projects must not change the essential function of any products to be delivered or the
essential purpose of services to be provided
under the contract.

(b) Definitions:
(1) Cost savings, as contemplated by this
clause mean savings that result from instituting changes to the covered contract, as
identified in an approved Cost Reduction
Proposal.
(2) Cost Reduction Proposal—For the purposes of this clause, a Cost Reduction Proposal means a proposal that recommends alternatives to the established procedures and/
or organizational support of a contract or
group of contracts. These alternatives must
result in a net reduction of contract cost and
price to NASA. The proposal will include
technical and cost information sufficient to
enable the Contracting Officer to evaluate
the CRP and approve or disapprove it.
(3) Covered contract—As used in this provision, covered contract means the contract,
including unexercised options but excluding
future contracts, whether contemplated or
not, against which the CRP is submitted.
(4) Contractor implementation costs—As used
in this provision, Contractor implementation costs, or ‘‘implementation costs’’, shall
mean those costs which the Contractor incurs on covered contracts specifically in developing, preparing, submitting, and negotiating a CRP, as well as those costs the Contractor will incur on covered contracts to
make any structural or organizational
changes in order to implement an approved
CRP.
(5) Government costs—As used in this provision, the term Government costs means internal costs of NASA, or any other Government agency, which result directly from development and implementation of the CRP.
These may include, but are not limited to,
costs associated with the administration of
the contract or with such contractually related functions such as testing, operations,
maintenance and logistics support. These
costs also include costs associated with
other Agency contracts (including changes
in contract price or cost and fee) that may
be affected as a result of the implementation
of a CRP. They do not include the normal administrative costs of reviewing and processing the Cost Reduction Proposal.
(c) General. The Contractor will develop,
prepare and submit CRP’s with supporting
information as detailed in paragraph (e) of
this clause, to the Contracting Officer. The
CRP will describe the proposed cost reduction activity in sufficient detail to enable
the Contracting Officer to evaluate it and to
approve or disapprove it. The Contractor
shall share in any net cost savings realized
from approved and implemented CRPs in accordance with the terms of this clause. The
Contractor’s actual percentage share of the
cost savings shall be a matter for negotiation with the Contracting Officer, but shall
not, in any event, exceed 50 percent of the

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National Aeronautics and Space Administration
total cost savings recognized by the Contracting Officer. The Contractor may propose changes in other activities that impact
performance on its contract, including Government and other Contractor operations, if
such changes will optimize cost savings. A
Contractor shall not be entitled to share,
however, in any cost savings that are internal to the Government, or which result from
changes made to any contracts to which it is
not a party even if those changes were proposed as a part of its CRP. Early communication between the Contractor and Government is encouraged. The communication
may be in the form of a concept paper or preliminary proposal. The Government is not
committed to accepting any proposal as a result of these early discussions.
(d) Computation of cost savings. The cost
savings to be shared between the Government and the Contractor will be computed
by the Contracting Officer by comparing a
current estimate to complete (ETC) for the
covered contract, as structured before implementation of the proposed CRP, to a revised
ETC which takes into account the implementation of that CRP. The cost savings to be
shared shall be reduced by any cost overrun,
whether experienced or projected, that is
identified on the covered contract before implementation of the CRP. Although a CRP
may result in cost savings that extend far
into the future, the period in which the Contractor may share in those savings will be
limited to no more than five years. Implementation costs of the Contractor must be
considered and specifically identified in the
revised ETC. The Contracting Officer shall
offset Contractor cost savings by any increased costs (whether implementing or recurring) to the Government when computing
the total cost savings to be shared. The Contractor shall not be entitled, under the provisions of this clause, to share in any cost reductions to the contract that are the result
of changes stemming from any action other
than an approved CRP. However, this clause
does not limit recovery of any such reimbursements that are allowed as a result of
other contract provisions.
(e) Supporting Information. As a minimum, the Contractor shall provide the following supporting information with each
CRP:
(1) Identification of the current contract
requirements or established procedures and/
or organizational support which are proposed
to be changed.
(2) A description of the difference between
the current process or procedure and the proposed change. This description shall address
how proposed changes will meet NASA requirements and discuss the advantages and
disadvantages of the existing practice and
the proposed changes.
(3) A list of contract requirements which
must be revised, if any, if the CRP is ap-

1852.243–71

proved, along with proposed revisions. Any
changes to NASA or delegated contract management processes should also be addressed.
(4) Detailed cost estimates which reflect
the implementation costs of the CRP.
(5) An updated ETC for the covered contract, unchanged, and a revised ETC for the
covered contract which reflects changes resulting from implementing the CRP. If the
CRP proposes changes to only a limited
number of elements of the contract, the
ETCs need only address those portions of the
contract that have been impacted. Each ETC
shall depict the level of costs incurred or to
be incurred by year, or to the level of detail
required by the Contracting Officer. If other
CRPs have been proposed or approved on a
contract, the impact of these CRPs must be
addressed in the computation of the cost savings to ensure that the cost savings identified are attributable only to the CRP under
consideration in the instant case.
(6) Identification of any other previous
submissions of the CRP, including the dates
submitted, the agencies and contracts involved, and the disposition of those submittals.
(f) Administration.
(1) The Contractor shall submit proposed
CRPs to the Contracting Officer who shall be
responsible for the review, evaluation and
approval. Normally, CRP’s should not be entertained for the first year of performance to
allow the Contracting Officer to assess performance against the basic requirements. If
a cost reduction project impacts more than a
single contract, the Contractor may, upon
concurrence of the Contracting Officers responsible for the affected contracts, submit a
single CRP which addresses fully the cost
savings projected on all affected contracts
that contain this Shared Savings Clause. In
the case of multiple contracts affected, responsibility for the review and approval of
the CRP will be a matter to be decided by
the affected Contracting Officers.
(2) Within 60 days of receipt, the Contracting Officer shall complete an initial
evaluation of any proposed cost reduction
plan to determine its feasibility. Failure of
the Contracting Officer to provide a response
within 60 days shall not be construed as approval of the CRP. The Government shall
promptly notify the Contractor of the results of its initial evaluation and indicate
what, if any, further action will be taken. If
the Government determines that the proposed CRP has merit, it will open discussions
with the Contractor to establish the cost
savings to be recognized, the Contractor’s
share of the cost savings, and a payment
schedule. The Contractor shall continue to
perform in accordance with the terms and
conditions of the existing contract until a
contract modification is executed by the
Contracting Officer. The modification shall

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1852.243–72

48 CFR Ch. 18 (10–1–02 Edition)

constitute approval of the CRP and shall incorporate the changes identified by the CRP,
adjust the contract cost and/or price, establish the Contractor’s share of cost savings,
and incorporate the agreed to payment
schedule.
(3) The Contractor will receive payment by
submitting invoices to the Contracting Officer for approval. The amount and timing of
individual payments will be made in accordance with the schedule to be established with
the Contracting Officer. Notwithstanding the
overall savings recognized by the Contracting Officer as a result of an approved
CRP, payment of any portion of the Contractor’s share of savings shall not be made until
NASA begins to realize a net cost savings on
the contract (i.e., implementation, startup
and other increased costs resulting from the
change have been offset by cumulative cost
savings).
Savings
associated
with
unexercised options will not be paid unless
and until the contract options are exercised.
It shall be the responsibility of the Contractor to provide such justification as the
Contracting Officer deems necessary to substantiate that cost savings are being
achieved.
(4) Any future activity, including a merger
or acquisition undertaken by the Contractor
(or to which the Contractor becomes an involved party), which has the effect of reducing or reversing the cost savings realized
from an approved CRP for which the Contractor has received payment may be cause
for recomputing the net cost savings associated with any approved CRP. The Government reserves the right to make an adjustment to the Contractor’s share of cost savings and to receive a refund of moneys paid
if necessary. Such adjustment shall not be
made without notifying the Contractor in
advance of the intended action and affording
the Contractor an opportunity for discussion.
(g) Limitations. Contract requirements
that are imposed by statute shall not be targeted for cost reduction exercises. The Contractor is precluded from receiving reimbursements under both this clause and other
incentive provisions of the contract, if any,
for the same cost reductions.

(h) Disapproval of, or failure to approve,
any proposed cost reduction proposal shall
not be considered a dispute subject to remedies under the Disputes clause.
(i) Cost savings paid to the Contractor in
accordance with the provisions of this clause
do not constitute profit or fee within the
limitations imposed by 10 U.S.C. 2306(d) and
41 U.S.C. 254(b).

(End of clause)
[62 FR 14033, Mar. 25, 1997]

1852.243–72 Equitable adjustments.
As prescribed in 1843.205–70(b), insert
the following clause.
EQUITABLE ADJUSTMENTS (APR 1998)
(a) The provisions of all other clauses contained in this contract which provide for an
equitable
adjustment,
including
those
clauses incorporated by reference with the
exception of the ‘‘Suspension of Work’’
clause (FAR 52.242–14), are supplemented as
follows:
Upon written request, the Contractor shall
submit a proposal for review by the Government. The proposal shall be submitted to the
contracting officer within the time limit indicated in the request or any extension
thereto subsequently granted. The proposal
shall provide an itemized breakdown of all
increases and decreases in the contract for
the Contractor and each subcontractor in at
least the following detail: material quantities and costs; direct labor hours and rates
for each trade; the associated FICA, FUTA,
SUTA, and Workmen’s Compensation Insurance; and equipment hours and rates.
(b) The overhead percentage cited below
shall be considered to include all indirect
costs including, but not limited to, field and
office supervisors and assistants, incidental
job burdens, small tools, and general overhead allocations. ‘‘Commission’’ is defined as
profit on work performed by others. The percentages for overhead, profit, and commission are negotiable according to the nature,
extent, and complexity of the work involved,
but in no case shall they exceed the following ceilings:
Overhead
(percent)

To Contractor on work performed by other than its own forces ...................................
To first tier subcontractor on work performed by its subcontractors ............................
To Contractor and/or subcontractors on work performed with their own forces ..........

(c) Not more than four percentages for
overhead, profit, and commission shall be allowed regardless of the number of subcontractor tiers.

Profit
(percent)

--------10

Commission

--------10

(d) The Contractor or subcontractor shall
not be allowed overhead or commission on
the overhead, profit, and/or commission received by its subcontractors.

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National Aeronautics and Space Administration
(e) Equitable adjustments for deleted work
shall include credits, limited to the same
percentages for overhead, profit, and commission in paragraph (b) of this clause.
(f) On proposals covering both increases
and decreases in the amount of the contract,
the application of the overhead, profit, and
commission shall be on the net change in direct costs for the Contractor or the subcontractor performing the work.
(g) After receipt of the Contractor’s proposal, the contracting officer shall act within a reasonable period, provided that when
the necessity to proceed with a change does
not permit time to properly check the proposal, or in the event of a failure to reach an
agreement on a proposal, the contracting officer may order the Contractor to proceed on
the basis of the price being determined at
the earliest practicable date. In such a case,
the price shall not be more than the increase
or less than the decrease proposed.

(End of clause)
[63 FR 17339, Apr. 9, 1998]

1852.244–70 Geographic participation
in the aerospace program.
As prescribed in 1844.204–70, insert the
following clause:
GEOGRAPHIC PARTICIPATION IN THE AEROSPACE
PROGRAM (APR 1985)
(a) It is the policy of the National Aeronautics and Space Administration to advance a broad participation by all geographic regions in filling the scientific, technical, research and development, and other
needs of the aerospace program.
(b) The Contractor agrees to use its best efforts to solicit subcontract sources on the
broadest feasible geographic basis consistent
with efficient contract performance and
without impairment of program effectiveness or increase in program cost.
(c) The Contractor further agrees to insert
this clause in all subcontracts of $100,000 and
over.

(End of clause)

1852.245–71

quired for incorporation into special test
equipment or special tooling.
(b)(1) Upon determination of need for any
Government-owned equipment item for performance of this contract, the contractor
shall provide to the contracting officer a
written request justifying the need for the
equipment and the reasons why contractorowned property cannot be used, citing the
applicable FAR or contract authority for use
of Government-owned equipment. Equipment
being acquired as a deliverable end item listed in the contract or as a component for incorporation into a deliverable end item listed in the contract is exempt from this requirement.
(2) The contractor’s request shall include a
description of the item in sufficient detail to
enable the Government to screen its inventories for available equipment or to purchase
equipment. For this purpose, the contractor
shall (i) prepare a separate DD Form 1419,
DOD Industrial Plant Equipment Requisition, or equivalent format, for each item requested and (ii) forward it through the contracting officer to the Industrial Property
Officer at the cognizant NASA installation
at least 30 days in advance of the date the
contractor intends to acquire the item. Multiple units of identical items may be requested on a single form. Instructions for
preparing the DD Form 1419 are contained in
NASA FAR Supplement 1845.7102. If a certificate of nonavailability is not received within
that period, the contractor may proceed to
acquire the item, subject to having obtained
contracting officer consent, if required, and
having complied with any other applicable
provisions of this contract.
(c) Contractors who are authorized to conduct their own screening using the NASA
Equipment Management System (NEMS) and
other Government sources of excess property
shall provide the evidence of screening results with their request for contracting officer consent. Requests to purchase based on
unsuitability of items found shall include rationale for the determined unsuitability.

(End of clause)
[62 FR 36735, July 9, 1997; 62 FR 40309, July 28,
1997]

[54 FR 28340, July 5, 1989, as amended at 62
FR 14034, Mar. 25, 1997]

1852.245–70 Contractor requests for
Government-owned equipment.
As prescribed in 1845.106–70(a), insert
the following clause:
CONTRACTOR REQUESTS FOR GOVERNMENTOWNED EQUIPMENT (JUL 1997)
(a) ‘‘Equipment,’’ as used in this clause,
means commercially available items capable
of stand-alone use, including those to be ac-

1852.245–71 Installation-accountable
Government property.
As prescribed in 1845.106–70(b), insert
the following clause:
INSTALLATION-ACCOUNTABLE GOVERNMENT
PROPERTY (JUN 1998)
(a) The Government property described in
the clause at 1852.245–77, List of InstallationAccountable Property and Services, shall be
made available to the contractor on a nocharge basis for use in performance of this

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1852.245–72

48 CFR Ch. 18 (10–1–02 Edition)

contract. This property shall be utilized only
within the physical confines of the NASA installation that provided the property. Under
this clause, the Government retains accountability for, and title to, the property, and
the contractor assumes the following user
responsibilities: [Insert contractor user responsibilities].
The contractor shall establish and adhere
to a system of written procedures for compliance with these user responsibilities. Such
procedures must include holding employees
liable, when appropriate, for loss, damage, or
destruction of Government property.
(b)(1) The official accountable recordkeeping, physical inventory, financial control, and reporting of the property subject to
this clause shall be retained by the Government and accomplished by the installation
Supply and Equipment Management Officer
(SEMO) and Financial Management Officer.
If this contract provides for the contractor
to acquire property, title to which will vest
in the Government, the following additional
procedures apply:
(i) The contractor’s purchase order shall
require the vendor to deliver the property to
the installation central receiving area;
(ii) The contractor shall furnish a copy of
each purchase order, prior to delivery by the
vendor, to the installation central receiving
area;
(iii) The contractor shall establish a record
of the property as required by FAR 45.5 and
1845.5 and furnish to the Industrial Property
Officer a DD Form 1149 Requisition and Invoice/Shipping Document (or installation
equivalent) to transfer accountability to the
Government within 5 working days after receipt of the property by the contractor. The
contractor is accountable for all contractoracquired property until the property is
transferred to the Government’s accountability.
(iv) Contractor use of Government property at an off-site location and off-site subcontractor use require advance approval of
the contracting officer and notification of
the SEMO. The contractor shall assume accountability and financial reporting responsibility for such property. The contractor
shall establish records and property control
procedures and maintain the property in accordance with the requirements of FAR Part
45.5 until its return to the installation.
(2) After transfer of accountability to the
Government, the contractor shall continue
to maintain such internal records as are necessary to execute the user responsibilities
identified in paragraph (a) and document the
acquisition, billing, and disposition of the
property. These records and supporting documentation shall be made available, upon request, to the SEMO and any other authorized
representatives of the contracting officer.

(End of clause)
Alternate I (MAR 1989). As prescribed
in 1845.106–70(b)(2), insert the following
as subparagraph (b)(3) of the basic
clause:
(3) The contractor shall not utilize the installation’s central receiving facility for receipt of Contractor-acquired property. However, the Contractor shall provide listings
suitable for establishing accountable records
of all such property received, on a quarterly
basis, to the Contracting Officer and the
Supply and Equipment Management Officer.
[62 FR 36735, July 9, 1997; 62 FR 40309, July 28,
1997, as amended at 63 FR 32764, June 16, 1998]

1852.245–72 Liability for Government
property furnished for repair or
other services.
As prescribed in 1845.106–70(c), insert
the following clause:
LIABILITY FOR GOVERNMENT PROPERTY FURNISHED FOR REPAIR OR OTHER SERVICES
(MAR 1989)
(a) This clause shall govern with respect to
any Government property furnished to the
Contractor for repair or other services that
is to be returned to the Government. Such
property,
hereinafter
referred
to
as
‘‘Government property furnished for servicing,’’ shall not be subject to any clause of
this contract entitled Government-Furnished Property or Government Property.
(b) The official accountable recordkeeping
and financial control and reporting of the
property subject to this clause shall be retained by the Government. The Contractor
shall maintain adequate records and procedures to ensure that the Government property furnished for servicing can be readily
accounted for and identified at all times
while in its custody or possession or in the
custody or possession of any subcontractor.
(c) The Contractor shall be liable for any
loss or destruction of or damage to the Government property furnished for servicing: (1)
Caused by the Contractor’s failure to exercise such care and diligence as a reasonable
prudent owner of similar property would exercise under similar circumstances, or (2)
sustained while the property is being worked
upon and directly resulting from that work,
including, but not limited to, any repairing,
adjusting, inspecting, servicing, or maintenance operation. The Contractor shall not be
liable for loss or destruction of or damage to
Government property furnished for servicing
resulting from any other cause except to the
extent that the loss, destruction, or damage
is covered by insurance (including self-insurance funds or reserves).
(d) In addition to any insurance (including
self-insurance funds or reserves) carried by

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National Aeronautics and Space Administration
the Contractor and in effect on the date of
this contract affording protection in whole
or in part against loss or destruction of or
damage to such Government property furnished for servicing, the amount and coverage of which the Contractor agrees to
maintain, the Contractor further agrees to
obtain any additional insurance covering
such loss, destruction, or damage that the
Contracting Officer may from time to time
require. The requirements for this additional
insurance shall be effected under the procedures established by the FAR 52.243 changes
clause of this contract.
(e) The Contractor shall hold the Government harmless and shall indemnify the Government against all claims for injury to persons or damage to property of the Contractor
or others arising from the Contractor’s possession or use of the Government property
furnished for servicing or arising from the
presence of that property on the Contractor’s premises or property.

(End of clause)
1852.245–73 Financial
reporting
of
NASA property in the custody of
contractors.
As prescribed in 1845.106–70(d), insert
the following clause:
FINANCIAL REPORTING OF NASA PROPERTY IN
THE CUSTODY OF CONTRACTORS (AUG 2001)
(a) The Contractor shall submit annually a
NASA Form (NF) 1018, NASA Property in the
Custody of Contractors, in accordance with
the provisions of 1845.505–14, the instructions
on the form, subpart 1845.71, and any supplemental instructions for the current reporting period issued by NASA.
(b)(1) Subcontractor use of NF 1018 is not
required by this clause; however, the Contractor shall include data on property in the
possession of subcontractors in the annual
NF 1018.
(2) The Contractor shall mail the original
signed NF 1018 directly to the cognizant
NASA Center Deputy Chief Financial Officer,
Finance, unless the Contractor uses the NF
1018 Electronic Submission System (NESS)
for report preparation and submission.
(3) One copy shall be submitted (through
the Department of Defense (DOD) Property
Administrator if contract administration
has been delegated to DOD) to the following
address: [Insert name and address of appropriate NASA Center office.], unless the Contractor uses the NF 1018 Electronic Submission System (NESS) for report preparation
and submission.
(c) The annual reporting period shall be
from October 1 of each year through September 30 of the following year. The report
shall be submitted in time to be received by
October 31. The information contained in

1852.245–74

these reports is entered into the NASA accounting system to reflect current asset values for agency financial statement purposes.
Therefore, it is essential that required reports be received no later than October 31.
The Contracting Officer may, in NASA’s interest, withhold payment until a reserve not
exceeding $25,000 or 5 percent of the amount
of the contract, whichever is less, has been
set aside, if the Contractor fails to submit
annual NF 1018 reports in accordance with
1845.505–14 and any supplemental instructions for the current reporting period issued
by NASA. Such reserve shall be withheld
until the Contracting Officer has determined
that the required reports have been received
by NASA. The withholding of any amount or
the subsequent payment thereof shall not be
construed as a waiver of any Government
right.
(d) A final report shall be submitted within
30 days after disposition of all property subject to reporting when the contract performance period is complete in accordance with
(b)(1) through (3) of this clause.

(End of clause)
[65 FR 54816, Sept. 11, 2000, as amended at 66
FR 41806, Aug. 9, 2001]

1852.245–74 Contractor
accountable
on-site Government property.
As prescribed in 1845.106–70(e), insert
the following clause:
CONTRACTOR ACCOUNTABLE ON-SITE
GOVERNMENT PROPERTY (MAR 1989)
(a) In performance of work under this contract, certain Government property identified in the contract shall be provided to the
Contractor on a no-charge-for-use basis by
the installation’s Supply and Equipment
Management Officer. That property shall be
utilized in the performance of this contract
at the installation that provided the property or at such other installations or locations as may be specified elsewhere in this
contract. The Contractor assumes accountability and user responsibilities for the property.
(b) Government property provided shall in
every respect be subject to the provisions of
the FAR 52.245 Government property clause
of this contract. In addition, the contractor
is responsible for managing this property in
accordance with the guidelines provided by
the installation’s Supply and Equipment
Management Officer or any other formally
designated representatives of the Contracting Officer. The guidelines include but
are not limited to requiring the Contractor
to—
(1) Use economic order quantity (EOQ)
methods for routine stock replenishment;
(2) Utilize the Federal Cataloging System;

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1852.245–75

48 CFR Ch. 18 (10–1–02 Edition)

(3) Comply with shelf-life requirements;
(4) Provide for accountability and control
(using the NASA Equipment Management
System (NEMS)) of all equipment costing
$1000 and over, plus that equipment designated as ‘‘sensitive’’;
(5) Provide for physical inventory of all
controlled equipment at least every 3 years;
(6) Provide for sample inventories of materials plus complete inventories every 5 years;
(7) Conduct walk-through utilization inspections;
(8) Screen NEMS before acquiring any
equipment costing $1000 or over, plus equipment designated by the installation as sensitive and costing $500 and over;
(9) Support the Equipment Acquisition
Document (EAD) process; and
(10) Use Government sources as the first
source of supply.
(c) Data requirements relating to the
guidelines in paragraph (b) of this clause are
specified under section F, Deliveries or performance.

(End of clause)
1852.245–75

Title to equipment.

As prescribed in 1845.106–70(f), insert
the following clause:
TITLE TO EQUIPMENT (MAR 1989)
(a) In accordance with the FAR 52.245 Government property clause of this contract,
title to equipment and other tangible personal property acquired by the Contractor
with funds provided for conducting research
under this contract and having an acquisition cost less than $llll [Insert a dollar
value not less than $5,000] shall vest in the
Contractor upon acquisition, provided that
the Contractor has complied with the requirements of the FAR 52.245 Government
property clause.
(b) Upon completion or termination of this
contract, the Contractor shall submit to the
Contracting Officer a list of all equipment
with an acquisition cost of $llll [Insert
the dollar value specified in paragraph (a)] or
more acquired under the contract during the
contract period. The list shall include a description, manufacturer and model number,
date acquired, cost, and condition information, and shall be submitted within 30 calendar days after completion or termination
of the contract, in accordance with Federal
Acquisition Regulation subsection 45.606–5.
(c) Title to the property specified in paragraph (b) of this clause vests in the Contractor, but the Government retains the
right to direct transfer of title to property
specified in paragraph (b) of this clause to
the Government or to a third party within
180 calendar days after completion or termination of the contract. Such transfer shall

not be the basis for any claim by the Contractor.
(d) Title to all Government-furnished property remains vested with the Government
(see the FAR 52.245 Government property
clause).
(e) Title to the contractor-acquired property listed below shall vest with the Government.
[List any contractor-acquired property for
which vesting of title with the Government
is appropriate or insert ‘‘None’’].

(End of clause)
1852.245–76 List of
nished property.

Government-fur-

As prescribed in 1845.106–70(g), insert
the following clause:
LIST OF GOVERNMENT-FURNISHED PROPERTY
(OCT 1988)
For performance of work under this contract, the Government will make available
Government property identified below or in
Attachment
llll [Insert
attachment
number or ‘‘not applicable’’] of this contract
on a no-charge-for-use basis. The Contractor
shall use this property in the performance of
this contract at llll[Insert applicable
site(s) where property will be used] and at
other location(s) as may be approved by the
Contracting Officer. Under the FAR 52.245
Government property clause of this contract,
the Contractor is accountable for the identified property.

Item

Quantity

Acquisition cost

Date to be
furnished to
the contractor

..................
..................
..................

..............
..............
..............

....................
....................
....................

[Insert a description of the item(s), quantity, acquisition cost, and date the property
will be furnished to the Contractor]

(End of clause)
1852.245–77 List
of
installation-accountable property and services.
As prescribed in 1845.106–70(h), insert
the following clause:
LIST OF INSTALLATION-ACCOUNTABLE
PROPERTY AND SERVICES (JUL 1997)
In accordance with the clause at 1852.245–
71, Installation-Accountable Government
Property, the Contractor is authorized use of
the types of property and services listed
below, to the extent they are available, in
the performance of this contract within the
physical borders of the installation which

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National Aeronautics and Space Administration
may include buildings and space owned or directly leased by NASA in close proximity to
the installation, if so designated by the Contracting Officer.
(a) Office space, work area space, and utilities. Government telephones are available
for official purposes only; pay telephones are
available for contractor employees for unofficial calls.
(b) General- and special-purpose equipment, including office furniture.
(1) Equipment to be made available is listed in Attachment ll [Insert attachment
number or ‘‘not applicable’’ if no equipment
is provided]. The Government retains accountability for this property under the
clause at 1852.245–71, Installation-Accountable Government Property, regardless of its
authorized location.
(2) If the Contractor acquires property,
title to which vests in the Government pursuant to other provisions of this contract,
this property also shall become accountable
to the Government upon its entry into Government records as required by the clause at
1852.245–71, Installation-Accountable Government Property.
(3) The Contractor shall not bring to the
installation for use under this contract any
property owned or leased by the Contractor,
or other property that the Contractor is accountable for under any other Government
contract, without the Contracting Officer’s
prior written approval.
(c) Supplies from stores stock.
(d) Publications and blank forms stocked
by the installation.
(e) Safety and fire protection for Contractor personnel and facilities.
(f) Installation service facilities: lll
[Insert the name of the facilities or ‘‘None’’]
(g) Medical treatment of a first-aid nature
for Contractor personnel injuries or illnesses
sustained during on-site duty.
(h) Cafeteria privileges for Contractor employees during normal operating hours.
(i) Building maintenance for facilities occupied by Contractor personnel.
(j) Moving and hauling for office moves,
movement of large equipment, and delivery
of supplies. Moving services shall be provided
on-site, as approved by the Contracting Officer.
(k) The user responsibilities of the Contractor are defined in paragraph (a) of the
clause at 1852.245–71, Installation-Accountable Government Property.

(End of clause)
[62 FR 36736, July 9, 1997; 62 FR 40309, July 28,
1997]

1852.245–79

1852.245–79 Use of Government-owned
property.
As prescribed in 1845.106–70(i), insert
the following provision:
USE OF GOVERNMENT-OWNED PROPERTY (JUL
1997)
(a) The offeror ( ) does, ( ) does not intend to use in performance of any contract
awarded as a result of this solicitation existing Government-owned facilities (real property or plant equipment), special test equipment, or special tooling (including any property offered by this solicitation). The offeror
shall identify any offered property not intended to be used. If the offeror does intend
to use any of the above items, the offeror
must furnish the following information required by Federal Acquisition Regulation
(FAR) 45.205(b), and NASA FAR Supplement
(NFS) 1845.102–71:
(1) Identification and quantity of each
item. Include the item’s acquisition cost if it
is not property offered by this solicitation.
(2) For property not offered by this solicitation, identification of the Government
contract under which the property is accountable and written permission for its use
from the cognizant Contracting Officer.
(3) Amount of rent, calculated in accordance with FAR 45.403 and the clause at FAR
52.245–9, Use and Charges, unless the property has been offered on a rent-free basis by
this solicitation.
(4) The dates during which the property
will be available for use, and if it is to be
used in more than one contract, the amounts
of respective uses in sufficient detail to support proration of the rent. This information
is not required for property offered by this
solicitation.
(b) The offeror ( ) does, ( ) does not request additional Government-provided property for use in performing any contract
awarded as a result of this solicitation. If the
offeror requests additional Government-provided property, the offeror must furnish—
(1) Identification of the property, quantity,
and estimated acquisition cost of each item;
and
(2) The offeror’s written statement of its
inability to obtain facilities as prescribed by
FAR 45.302–1(a)(4).
(c) If the offeror intends to use any Government property (paragraph (a) or (b) of
this provision), the offer must also furnish
the following:
(1) The date of the last Government review
of the offeror’s property control and accounting system, actions taken to correct
any deficiencies found, and the name and
telephone number of the cognizant property
administrator.
(2) A statement that the offeror has reviewed, understands, and can comply with
all property management and accounting

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1852.245–80

48 CFR Ch. 18 (10–1–02 Edition)

procedures in the solicitation, FAR Subpart
45.5, and NFS Subparts 1845.5 and 1845.71.
(3) A statement indicating whether or not
the costs associated with paragraph (c)(2) of
this provision, including plant clearance and/
or plant reconversion costs, are included in
its cost proposal.

(End of provision)
[62 FR 36736, July 9, 1997; 62 FR 40309, July 28,
1997, as amended at 63 FR 32764, June 16, 1998]

1852.245–80 Use of Government production and research property on a
no-charge basis.
As prescribed in 1845.106–70(k), insert
the following clause:
USE OF GOVERNMENT PRODUCTION AND RESEARCH PROPERTY ON A NO-CHARGE BASIS
(MAR 1989)
In performing this contract, the Contractor is authorized to use on a no-charge,
noninterference basis the Government-owned
production and research property provided to
the Contractor under the contract(s) specified below and identified in the cognizant
Contracting Officer’s letter approving use of
the property. Use is authorized on the basis
that it will not interfere with performance of
the Government contract(s) under which the
property was originally furnished. Use shall
be in accordance with the terms and conditions of these contracts and the cognizant
Contracting Officer’s approval letter.
Contract No(s): [Insert the contract number(s) under which the Government property
is accountable].

plicable law, assist the Government by furnishing personal data and medical records.
(b) The standard that will be used in certifying individuals for a mission-critical position is that they must be determined to be
suitable, competent, and reliable in the performance of their assigned duties in accordance with the screening requirements 14 CFR
1214.5. If the Government determines that a
Contractor employee occupying or nominated to occupy a mission-critical position
will not be certified for such duty, the Contracting Officer shall (1) furnish to the employee the specific reasons for its action; (2)
advise the employee that he/she may avail
himself/herself of the review procedures that
are a part of the certification system; and (3)
furnish him/her a copy of those procedures
upon request.
(c) If a Contractor employee who has been
nominated for (but has not yet filled) a mission-critical position is not certified, the
Contractor agrees to defer the appointment
to the position until the employee has had
an opportunity to pursue the referenced procedures. If the employee is an incumbent to
the position, the Contractor agrees, upon the
request of the Government, to remove him/
her from the position temporarily pending
an appeal of the action under the review procedures. If any employee not certified elects
not to take action under the procedures, or,
if having taken action, is not successful in
obtaining a reversal of the determination,
the Contractor agrees not to appoint the employee to the position, or if already appointed, to promptly remove the employee.

(End of clause)

(End of clause)
1852.246–70 Mission Critical Space
System Personnel Reliability Program.
As prescribed in 1846.370(a), insert the
following clause:

[62 FR 14034, Mar. 25, 1997]

1852.246–71 Government
contract
quality assurance functions.
As prescribed in 1846.470, insert the
following clause:

MISSION CRITICAL SPACE SYSTEM PERSONNEL
RELIABILITY PROGRAM (MAR 1997)
(a) In implementation of the Mission Critical Space System Personnel Reliability Program, described in 14 CFR 1214.5, the Government shall identify personnel positions that
are mission critical. Some of the positions as
identified may now or in the future be held
by employees of the Contractor. Upon notification by the Contracting Officer that a mission-critical position is being or will be filled
by one or more of the Contractor’s employees, the Contractor shall (1) provide the affected employees with a clear understanding
of the investigative and medical requirements and, (2) to the extent permitted by ap-

GOVERNMENT CONTRACT QUALITY ASSURANCE
FUNCTIONS (OCT 1988)
In accordance with the inspection clause of
this contract, the Government intends to
perform the following functions at the locations indicated:
Item

Quality Assurance Function

Location

[Insert the items involving quality assurance, the quality assurance functions, and
where the functions will be performed]

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National Aeronautics and Space Administration

1852.247–72

BRING THIS FACT TO THE IMMEDIATE
ATTENTION OF THE PURCHASER.’’

(End of clause)
[54 FR 28340, July 5, 1989, as amended at 55
FR 27090, June 19, 1990; 62 FR 14035, Mar. 25,
1997]

(End of clause)
[62 FR 14035, Mar. 25, 1997]

1852.246–72 Material
receiving report.

inspection

and

As prescribed in 1846.674, insert the
following clause:

1852.247–71 Protection of the Florida
manatee.
As prescribed in 1847.7001, insert the
following clause:

MATERIAL INSPECTION AND RECEIVING REPORT
(JUN 1995)
(a) At the time of each delivery to the Government under this contract, the Contractor
shall furnish a Material Inspection and Receiving Report (DD Form 250 series) prepared
in ll [Insert number of copies, including
original] copies, an original and ll copies
[Insert number of copies].
(b) The Contractor shall prepare the DD
Form 250 in accordance with NASA FAR
Supplement 1846.672–1. The Contractor shall
enclose the copies of the DD Form 250 in the
package or seal them in a waterproof envelope, which shall be securely attached to the
exterior of the package in the most protected location.
(c) When more than one package is involved in a shipment, the Contractor shall
list on the DD Form 250, as additional information, the quantity of packages and the
package numbers. The Contractor shall forward the DD Form 250 with the lowest numbered package of the shipment and print the
words ‘‘CONTAINS DD FORM 250’’ on the
package.

(End of clause)
[54 FR 28340, July 5, 1989, as amended at 60
FR 40521, Aug. 9, 1995; 62 FR 14035, Mar. 25,
1997]

1852.246–73

Human space flight item.

As prescribed in 1845.370(b), insert the
following clause:
HUMAN SPACE FLIGHT ITEM (MAR 1997)
The Contractor shall include the following
statement in all subcontracts and purchase
orders placed by it in support of this contract, without exception as to amount or
subcontract level:
‘‘FOR USE IN HUMAN SPACE FLIGHT;
MATERIALS,
MANUFACTURING,
AND
WORKMANSHIP OF HIGHEST QUALITY
STANDARDS ARE ESSENTIAL TO ASTRONAUT SAFETY.
IF YOU ARE ABLE TO SUPPLY THE DESIRED ITEM WITH A HIGHER QUALITY
THAN THAT OF THE ITEMS SPECIFIED
OR PROPOSED, YOU ARE REQUESTED TO

PROTECTION OF THE FLORIDA MANATEE (MAR
1989)
(a) Pursuant to the Endangered Species
Act of 1973 (Pub. L. 93–205), as amended, and
the Marine Mammals Protection Act of 1972
(Pub. L. 92–522), the Florida Manatee
(Trichechus Manatus) has been designated an
endangered species, and the Banana and Indian Rivers within and adjacent to NASA’s
Kennedy Space Center (KSC) have been designated as a critical habitat of the Florida
Manatee.
(b) Contractor personnel involved in vessel
operations, dockside work, and selected disassembly functions shall be provided training relative to (1) habits and characteristics
of the Florida Manatee, (2) provisions of the
applicable laws, (3) personal liability of
workers under the laws, and (4) operational
restrictions imposed by KSC.
(c) All vessel operations shall be conducted
within the posted speed restrictions, and vessels shall be operated at minimum controllable speeds in all KSC waters. Shallowwater operations are prohibited.
(d) Training will be conducted by personnel
of the U.S. Fish and Wildlife Service
(USFWS). The contractor agrees to cooperate with the USFWS by allowing access at
reasonable times and places (including shipboard) to USFWS personnel, and by making
available such contractor personnel as are
required to have the training. Arrangements
for training will be made as follows:
(1) For personnel involved in tug, barge, or
marine operations, through the Lockheed
Space Operations Contractor, Transportation Coordination Center, Kennedy Space
Center, Florida, telephone (407) 867–5330.
(2) For all other personnel, through the
Systems Training and Employee Development Branch, Code PM–TNG, telephone (407)
867–2737.
(e) The contractor shall incorporate the
provisions of this clause in applicable subcontracts (including vendor deliveries).

(End of clause)
1852.247–72 Advance notice of shipment.
As prescribed in 1847.305–70(a), insert
the following clause:

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1852.247–73

48 CFR Ch. 18 (10–1–02 Edition)

ADVANCE NOTICE OF SHIPMENT (OCT 1988)
lll[Insert number of work days] work
days prior to shipping item(s)lll[Insert
items to be shipped], the Contractor shall
furnish the anticipated shipment date, bill of
lading number (if applicable), and carrier
identity to llll[Insert individual(s) to receive notification] and to the Contracting
Officer.

(End of clause)
[54 FR 28340, July 5, 1989, as amended at 62
FR 14035, Mar. 25, 1997]

(iii) Individual and total weights.
(iv) Dimensional Weight.
(v) Dimensions and total cubic footage.
(vi) Total number of pieces.
(vii) Total dollar value.
(viii) Other pertinent data.
(End of clause)
[67 FR 38908, June 6, 2002]

1852.249–72 Termination (utilities).
As prescribed in 1849.505–70, insert the
following clause. The period of 30 days
may be varied not to exceed 90 days.
TERMINATION (UTILITIES) (MAR 1989)

1852.247–73 Bills of Lading.
As prescribed in 1847.305–70(b), insert
a clause substantially as follows:

The Government, at its option, may terminate this contract by giving written notice
not less than 30 days in advance of the termination’s effective date.

BILLS OF LADING (JUN 2002)

(End of clause)

The purpose of this clause is to define
when a commercial bill of lading or a government bill of lading is to be used when
shipments of deliverable items under this
contract are f.o.b. origin.
(a) Commercial Bills of Lading. All domestic
shipments shall be made via commercial
bills of lading (CBLs). The Contractor shall
prepay domestic transportation charges. The
Government shall reimburse the Contractor
for these charges if they are added to the invoice as a separate line item supported by
the paid freight receipts. If paid receipts in
support of the invoice are not obtainable, a
statement as described below must be completed, signed by an authorized company representative, and attached to the invoice.
‘‘I certify that the shipments identified
below have been made, transportation
charges have been paid by (company name),
and paid freight or comparable receipts are
not obtainable.
Contract or Order Number: lll
Destination: lll’’.
(b) Government Bills of Lading. (1) International (export) and domestic overseas
shipments of items deliverable under this
contract shall be made by Government bills
of lading (GBLs). As used in this clause,
‘‘domestic overseas’’ means non-continental
United States, i.e. Hawaii, Commonwealth of
Puerto Rico, and possessions of the United
States.
(2) At least 15 days before shipment, the
Contractor shall request in writing GBLs
from: lll [Insert name, title, and mailing
address of designated transportation officer
or other official delegated responsibility for
GBLs]. If time is limited, requests may be by
telephone: lll [Insert appropriate telephone number]. Requests for GBLs shall include the following information.
(i) Item identification/ description.
(ii) Origin and destination.

Subpart 1852.3—Provision and
Clause Matrix
1852.300 Scope of subpart.
The matrix in this subpart contains a
column for each principal type and/or
purpose of contract. See the first page
of the matrix for the key to column
headings, the dollar threshold chart,
and requirement symbols.
[57 FR 40856, Sept. 8, 1992]

1852.301 Solicitation provisions
contract clauses (Matrix).

PART 1853—FORMS
Subpart 1853.1—General
Sec.
1853.100 Scope of subpart.
1853.101 Requirements for use of forms.
1853.103 Exceptions.
1853.105 Computer generation.
1853.107 Obtaining forms.
1853.108 Recommendations
concerning
forms.

Subpart 1853.2—Prescription of Forms
1853.200 Scope of subpart.
1853.204 Administrative matters.
1853.204–70 General (NASA Forms 507, 507A,
507B, 507G, 507M, 531, 533M, 533Q, 1098,
1356, 1611, 1612, and Department of Defense Form 1593).
1853.208 Required sources of supplies and
services.
1853.208–70 Other
Government
sources
(Standard Form 1080, Air force Form 858,
Department of Energy Form CA–10–

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National Aeronautics and Space Administration
90.COM, Nuclear Regulatory Commission
Form 313).
1853.215 Contracting by negotiation.
1853.215–70 Price negotiation (NASA Form
634 and Department of Defense Form
1861).
1853.216 Types of contracts.
1853.216–70 Assignees under cost-reimbursement contracts (NASA Forms 778, 779,
780, and 781).
1853.217 Special contracting methods (NASA
Form 523).
1853.225 Foreign Acquisition (Customs Form
7501).
1853.232–70 Contract financing (Standard
Forms 272, 272A).
1853.242 Contract administration.
1853.242–70 Delegation (NASA Forms 1430,
1430A, 1431, 1432, 1433, and 1634) and service request (NASA Form 1434).
1853.242–71 Notifications (NASA Form 456).
1853.242–72 Evaluation
of
performance
(NASA Form 1680).
1853.245–70 Property (NASA Form 1018, Department of Defense Form 1419).
1853.246 Quality assurance (Department of
Defense Forms 250 and 250c).
1853.249–70 Termination of contracts (NASA
Forms 1412, 1413).
1853.271 MidRange procurement procedures
(NASA Forms 1667 and 1668).

warded through the center forms manager to the Headquarters Office of Procurement (Code HK).
(2) Alteration of any form in this
part is prohibited unless prior approval
has been obtained from the Headquarters Office of Management Systems and Facilities, Information Resources Management Division (Code
JT). Requests for alteration shall be
coordinated with the center forms
manager before transmittal to Code
JT.
(3) Use for the same purpose of any
form other than one prescribed by this
Regulation requires prior approval of
Code HK.
1853.105

Computer generation.

Forms prescribed by this Regulation
may be adapted for computer preparation providing there is no change to
the name, content, or sequence of the
data elements, and the form carries the
form number and edition date.
1853.107 Obtaining forms. (NASA supplements paragraph (c))

Subpart 1853.3—Illustrations of Forms
1853.300
1853.301
1853.303

1853.200

Scope of subpart.
Standard forms.
Agency forms.

AUTHORITY: 42 U.S.C. 2473(c)(1).
SOURCE: 62 FR 36737, July 9, 1997, unless
otherwise noted.

Subpart 1853.1—General
1853.100 Scope of subpart.
This subpart contains information
regarding the forms prescribed in this
Regulation. Unless specified otherwise,
the policies in FAR Part 53 apply to
NASA-prescribed forms.
1853.101 Requirements for use of
forms.
The requirements for use of the
forms in this part are contained in
Parts 1801 through 1852 where the subject matter applicable to each form is
addressed. The specific location of each
form’s prescription is identified in subpart 1853.2.
1853.103 Exceptions.
(1) Requests for exceptions to standard or optional forms shall be for-

(c)(i) NASA centers and offices may
obtain forms prescribed in the FAR or
in this Regulation from Goddard Space
Flight Center, Code 239. Orders should
be placed on a NASA Form 2, Request
for Blank Forms, Publications and
Issuances.
(ii) Contracting officers, at the time
of contract award, shall ensure that
contractors are notified of the procedures for obtaining NASA forms required for performance under the contract.
1853.108 Recommendations
cerning forms.

Code HK is the office responsible for
submitting form recommendations.

Subpart 1853.2—Prescription of
Forms
1853.200

Scope of subpart.

This subpart summarizes the prescriptions of NASA forms and other
forms adopted by NASA for use in acquisition.

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1853.204
1853.204

48 CFR Ch. 18 (10–1–02 Edition)
Administrative matters.

1853.204–70 General (NASA Forms 507,
507A, 507B, 507G, 507M, 531, 533M,
533Q, 1098, 1356, 1611, 1612 and Department of Defense Form 1593).
(a) The following forms are prescribed in 1804.670–3:
(1) NASA Form 507, Individual Procurement Action Report (New Awards).
(2) NASA Form 507A, Individual Procurement Action Report (New Awards)
Supplement A.
(3) NASA Form 507B, Individual Procurement Action Report Supplement B.
(4) NASA Form 507G, Individual Procurement Action Report (Grants/Orders).
(5) NASA Form 507M, Individual Procurement
Action
Report
(Modifications).
(b) NASA Form 531, Name Check Request. Prescribed in 1852.204–76.
(c) The following forms are prescribed in 1842.72:
(1) NASA Form 533M, Monthly Contractor Financial Management Report.
(2) NASA Form 533Q, Quarterly Contractor Financial Management Report.
(d) NASA Form 1098, Checklist for Contract Award File Content. Prescribed in
1804.803–70.
(e) NASA Form 1356, C.A.S.E. Report on
College and University Projects. Prescribed in 1804.671.
(f) NASA Form 1611, Contract Completion Statement. Prescribed in 1804.804–2
and 1804.804–5.
(g) The following forms are prescribed in 1804.804–5:
(1) NASA Form 1612, Contract Closeout Checklist.
(2) DD Form 1593, Contract Administration Completion Record.
1853.208 Required sources of supplies
and services.
1853.208–70 Other
Government
sources (Standard Form 1080, Air
force Form 858, Department of Energy Form CA–10–90.COM, Nuclear
Regulatory Commission Form 313).
(a) SF 1080, Voucher for Transfers Between Appropriations and/or Funds
(Disbursement). Prescribed in 1808.002–
72(e).
(b) Air Force Form 858, Forecast of Requirements (Missile Propellants and

Pressurants). Prescribed in 1808.002–
72(f).
(c) U.S. Department of Energy Isotope and Technical Service Order Form
CA–10–90.COM. Prescribed in 1808.002–
70(a).
(d) Nuclear Regulatory Commission
Form 313, Application for Material License. Prescribed in 1808.002–70(a).
[62 FR 36737, July 9, 1997, as amended at 64
FR 5621, Feb. 4, 1999]

1853.215

Contracting by negotiation.

1853.215–70 Price negotiation (NASA
Form 634 and Department of Defense Form 1861).
(a) NASA Form 634, Structured Approach—Profit/Fee Objective. Prescribed
in 1815.404–470.
(b) DD Form 1861, Contract Facilities
Capital Cost of Money. Prescribed in
1830.70, and instructions for completion
are in 1830.7001–2.
[62 FR 36737, July 9, 1997. Redesignated and
amended at 63 FR 9966, Feb. 27, 1998]

1853.216

Types of contracts.

1853.216–70 Assignees under cost-reimbursement contracts (NASA Forms
778, 779, 780, and 781).
The following forms are prescribed in
1852.216–89:
(a) NASA Form 778, Contractor’s Release.
(b) NASA Form 779, Assignee’s Release.
(c) NASA Form 780, Contractor’s Assignment of Refunds, Rebates, Credits,
and Other Amounts.
(d) NASA Form 781, Assignee’s Assignment of Refunds, Rebates, Credits,
and Other Amounts.
1853.217 Special contracting methods
(NASA Forms 523).
NASA Form 523, NASA-Defense Purchase Request. Prescribed in 1808.002–
72(b) and 1817.7002.
1853.225 Foreign Acquisition (Customs
Form 7501).
Customs Form 7501, Entry Summary.
Prescribed in 1825.903 and 14 CFR
1217.104.
[65 FR 10033, Feb. 25, 2000]

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National Aeronautics and Space Administration

1853.271

1853.232–70 Contract
financing
(Standard Forms 272, 272A).

1853.242–72 Evaluation of
ance (NASA Form 1680).

The following forms are prescribed in
1832.412(a)(ii):
(a) SF 272, Federal Cash Transactions
Report.
(b) SF 272A, Federal Cash Transactions Report Continuation.

NASA Form 1680, Evaluation of Performance. Prescribed in 1842.1503.

[62 FR 36737, July 9, 1997. Redesignated at 63
FR 9966, Feb. 27, 1998]

(a) NASA Form 1018, NASA Property in
the Custody of Contractors. Prescribed in
1845.505–14. Instructions for form completion are in 1845.7101.
(b) DD Form 1419, DOD Industrial
Plant Equipment Requisition. Prescribed in 1852.245–70. Instructions for
form completion are in 1845.7102.

1853.242

Contract administration.

1853.242–70 Delegation (NASA Forms
1430, 1430A, 1431, 1432, 1433, and
1634) and service request (NASA
Form 1434).
(a) NASA Form 1430, Letter of Contract
Administration Delegation, General. Prescribed in 1842.202(d)(ii).
(b) NASA Form 1430A, Letter of Contract Administration Delegation, Special
Instructions.
Prescribed
in
1842.202(d)(ii).
(c) NASA Form 1431, Letter of Acceptance of Contract Administration Delegation. Prescribed in 1842.202(d)(iii).
(d) NASA Form 1432, Letter of Contract
Administration Delegation, Termination.
Prescribed in 1842.202(b)(1)(G).
(e) NASA Form 1433, Letter of Audit
Delegation. Prescribed in 1842.202(d)(iv).
(f) NASA Form 1634, Contracting Officer
Technical Representative (COTR) Delegation. Prescribed in 1842.270(b).
(g) NASA Form 1434, Letter of Request
for Pricing-Audit Technical Evaluation
Services.
Prescribed
in
1815.404–
2(a)(1)(D).
[62 FR 36737, July 9, 1997, as amended at 63
FR 9967, Feb. 27, 1998]

1853.242–71
456).

Notifications (NASA Form

NASA Form 456, Notice of Contract
Costs Suspended and/or Disapproved.
Prescribed in 1842.803(b)(2).

Perform-

[63 FR 27860, May 21, 1998]

1853.245–70 Property
(NASA
Form
1018, Department of Defense Form
1419).

[62 FR 36737, July 9, 1997. Redesignated at 63
FR 9966, Feb. 27, 1998]

1853.246 Quality
assurance
(Department of Defense Forms 250
and 250c).
The following forms are prescribed in
1846.670. Instructions for form completion are in 1846.670:
(a) DD Form 250, Material Inspection
and Receiving Report
(b) DD Form 250c, Material Inspection and Receiving Report-Continuation Sheet.
1853.249–70 Termination of contracts
(NASA Forms 1412, 1413).
(a) NASA Form 1412, Termination Authority. Prescribed in 1849.101–71.
(b) NASA Form 1413, Termination Docket Checklist. Prescribed in 1849.105–70.
[62 FR 36737, July 9, 1997. Redesignated at 63
FR 9966, Feb. 27, 1998]

1853.271 MidRange procurement procedures (NASA Forms 1667 and
1668).
The following forms are prescribed in
1871.105(f):
(a) NASA Form 1667, Request for
Offer.
(b) NASA Form 1668, Contract.
[64 FR 19926, Apr. 23, 1999]

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1853.300

48 CFR Ch. 18 (10–1–02 Edition)

Subpart 1853.3—Illustrations of
Forms
1853.300

1853.301

Standard forms.

This section illustrates standard
forms (SFs) specified for use in acquisitions.

Scope of subpart.

This subpart contains illustrations of
NASA forms and others forms used by
NASA in acquisitions and not prescribed in the FAR.

1853.303

Agency forms.

This section illustrates NASA and
other agency forms specified for use in
acquisitions. The other agency forms
are arranged numerically by agency
following the NASA forms.

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SUBCHAPTER I—AGENCY SUPPLEMENTARY REGULATIONS
1871.604–3 Discussions with ‘‘Finalists’’.
1871.604–4 Selection of ‘‘Best Value’’ Offer.

PART 1871—MIDRANGE
PROCUREMENT PROCEDURES

AUTHORITY: 42 U.S.C. 2473(c)(1).
Sec.
1871.000

1871.101
1871.102
1871.103
1871.104

Scope of part.

SOURCE: 61 FR 55758, Oct. 29, 1996, unless
otherwise noted.

Subpart 1871.1—General

1871.000

Purpose.
Applicability.
Definitions.
Policy.

This part prescribes policies and procedures for the acquisition of supplies,
including commercial items, and services.

Subpart 1871.2—Planning and
Requirements Process

Scope of part.

Subpart 1871.1—General

1871.201 Use of buying team.
1871.202 Organizational responsibilities.
1871.202–1 Requiring organization.
1871.202–2 Procurement organization.
1871.202–3 Supporting organizations.
1871.202–4 Center management.
1871.203 Buying team responsibilities.
1871.204 Small business set-asides.

SOURCE: 64 FR 19926, Apr. 23, 1999, unless
otherwise noted.

1871.101

Purpose.

The purpose of this part is to establish policies and procedures that implement the MidRange procurement process.

Subpart 1871.4—Request for Offer (RFO)
1871.400 General.
1871.401 Types of RFO’s.
1871.401–1 Sealed offers.
1871.401–2 Two-step competitive acquisition.
1871.401–3 Competitive negotiated acquisition not using qualitative criteria.
1871.401–4 Competitive negotiations using
qualitative criteria (Best Value Selection).
1871.401–5 Noncompetitive negotiations.
1871.401–6 Commercial items.
1871.402 Preparation of the RFO.
1871.404 Protection of offers.

Subpart 1871.5—Award
1871.501 Representations and certifications.
1871.502 Determination of responsible contractor.
1871.503 Negotiation documentation.
1871.504 Award documents.
1871.505 Notifications
to
unsuccessful
offerors.
1871.506 Publication of award.
1871.507 Debriefing of unsuccessful offerors.

Subpart 1871.6—‘‘Best Value Selection’’
1871.601 General.
1871.602 Specifications for MidRange procurements.
1871.603 Establishment of evaluation criteria.
1871.604 Evaluation phases.
1871.604–1 Initial evaluation.
1871.604–2 Determination of ‘‘Finalists’’.

1871.102

Applicability.

(a) This part applies to all acquisitions at NASA, except as provided in
1871.401–4(a)(3), the aggregate amount
of which is not more than $10,000,000 including options, and for commercial
items (FAR Part 12) not more than
$25,000,000 including options. This part
may be used for commercial item contracts above $25,000,000 at the installation’s discretion.
(b) For other than commercial items,
if the Government estimate exceeds
the limits of paragraph (a) of this section, the acquisition will be processed
under FAR and NFS procedures applicable to large acquisitions (see FAR
Parts 14 and 15). When the estimate is
within the threshold of paragraph (a) of
this section and the acquisition was
started using these procedures but the
offered prices/costs exceed the MidRange ceiling, the acquisition may
continue under MidRange procedures,
provided that—
(1) The price/cost can be determined
to be fair and reasonable;
(2) The successful offeror accepts incorporation of required FAR and NFS
clauses applicable to large acquisitions; and

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1871.103

48 CFR Ch. 18 (10–1–02 Edition)

(3) The acquisition does not exceed
$15,000,000 for the total requirement.
1871.103 Definitions.
The following terms are used
throughout part 1871 as defined in this
subpart.
(a) MidRange procurement procedure
means a set of procedures contained in
this part and within the applicability
of 1871.102.
(b) Request for Offer (RFO) means
the solicitation used to request offers
for all authorized MidRange procurements.
(c) Clarification and Discussion are
used as defined in FAR 15.306.
(d) Commercial item is used as defined in FAR 2.101.
1871.104 Policy.
(a) Unless stated otherwise, acquisitions conducted using MidRange procedures shall comply with all applicable
parts of the FAR and NFS (e.g. FAR
15.4 and 1815.4—Contract Pricing, and
FAR 19.7 and 1819.7—The Small Business Subcontracting Program).
(b) Acquisitions conducted under
Part 1871, unless otherwise properly restricted under the provisions of FAR
Part 6, are considered to be full and
open competition after exclusion of
sources when set aside for competitions
among small business concerns (FAR
6.203), 8(a) concerns (FAR 6.204), or
HUBZone small businesses (FAR 6.205).
(c) Options may be included in the
acquisition provided they conform to
1871.102(a).
(d) The appropriate part 1871 post-selection processes (negotiation, award,
and publication of award) may be used
to the extent applicable for Small
Business Innovation Research (SBIR),
broad agency announcements, unsolicited proposals, and Small Business Administration 8(a) acquisitions within
the applicability of 1871.102(a).
(e) The NASA Acquisition Internet
Service (NAIS) will be used to the maximum extent practicable to disseminate advance acquisition information
and conduct part 1871 acquisitions.
(f) Use of locally generated forms is
encouraged where their use will contribute to the efficiency and economy
of the process. NASA Forms 1667, Request for Offer, and 1668, Contract, or

computer generated versions of these
forms, may be used as the solicitation
and contract cover sheets, respectively,
except that the SF1442, Solicitation,
Offer, and Award (Construction, Alteration, or Repair), shall be used for construction acquisitions and the SF1449,
Solicitation/Contract/Order for Commercial Items, shall be used for commercial item acquisitions. Contractor
generated forms or formats for solicitation response should be allowed
whenever possible. There is no requirement for uniform formats (see FAR
15.204).

Subpart 1871.2—Planning and
Requirements Process
1871.201 Use of buying team.
MidRange procedures are based on
the use of a buying team to conduct
the procurement. The concept is to designate individuals who are competent
in their respective functional areas,
provide those individuals with the
basic authority to conduct the procurement and hold them accountable for
the results. The buying team will normally consist of one technical member
and one procurement member, but may
be augmented with additional members
as necessary, Personnel providing normal functional assistance to the team
(e.g., legal, financial) will not be considered a part of the team unless so
designated. To function properly, the
team should be given the maximum decision authority in matters related to
the procurement. When higher level
management approvals remain essential, it will be incumbent upon the
functional team member to obtain such
approvals.
1871.202 Organizatonal
ities.

responsibil-

1871.202–1 Requiring organization.
The requirements organization shall
appoint, by name, the technical member of the buying team. This individual
will normally be an end user or the one
most familiar with the technical aspects of the requirement. The individual appointed, whatever the relationship with the procured item, is expected to totally fulfill the responsibilities to the buying team.

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National Aeronautics and Space Administration

1871.204

The procurement organization shall
appoint the procurement member of
the buying team. This individual shall
be a warranted contracting officer or a
contract specialist with broad latitude
to act for the contracting officer. The
procurement member shall be the team
leader with the ultimate responsibility
to conduct the procurement.

(4) Finalize the evaluation criteria;
(5) Develop the RFO and model contract; and
(6) Evaluate offers and determine the
awardee.
(b) The procurement member of the
buying team shall lead clarifications,
discussions, and negotiations; shall be
the source selection official; and shall
conduct debriefings.

1871.202–3

1871.204

1871.202–2

Procurement organization.

Supporting organizations.

Buying team members may require
additional team members to perform
specialized functions or to assist in the
evaluation of offers. Requests for supporting members shall be made by the
organization identifying the need for
the support and directed to the appropriate management level in the supporting organization. Supporting team
members, once designated for the
team, shall fulfill all applicable responsibilities to the team as other members.
1871.202–4

Center management.

Center managers shall, to the maximum extent practical and consistent
with their responsibilities to manage
the Center mission, convey sufficient
authority to members of the buying
team to conduct the procurement. Administrative or technical approvals
should be minimized, and where
deemed essential, facilitated to the
maximum extent practicable. Center
managers should lend their full support
to the buying team should problems
arise from the procurement.
1871.203

Buying team responsibilities.

(a) The buying team shall conduct
the procurement in a manner that best
satisfies the user requirements and
meets the norms expected of a Government procurement. Team members
should develop open communications,
rely on decisions of other responsible
functional team members and meet
their obligations to the team. The
team will typically—
(1) Refine the final specifications for
the solicitation;
(2) Decide the most appropriate solicitation method;
(3) Establish milestones for the procurement;

Small business set-asides.

(a) Except as provided in paragraphs
(b) through (f) of this section, each
MidRange acquisition shall be reserved
exclusively for small business concerns. (See FAR subparts 19.5 and 19.13.
See FAR 19.1305(a) regarding priority
considerations).
(b) The requirement for small business MidRange set-asides does not relieve the buying office of its responsibility to procure from required sources
of supply, such as Federal Prison Industries, Industries for the Blind and
Other Severely Handicapped, and multiple award Federal Supply Schedule
contracts.
(c) Procurements not conducted as
small business set-asides and under less
than full and open competition require
a Justification for Other than Full and
Open Competition pursuant to FAR
Part 6.
(d) If the buying team procurement
member determines that the conditions
for a HUBZone set-aside, HUBZone sole
source, or small business set-aside cannot be satisfied, the buying team may
purchase on an unrestricted basis utilizing MidRange procedures. The buying team procurement member shall
document the contract file with the
reason for the unrestricted acquisition.
(e) Acquisitions required to be conducted under Full and Open Competition by the Small Business Competitiveness Demonstration Program, FAR
subpart 19.10, will not be set aside for
small business.
(f) If the buying team proceeds with a
small business MidRange set-aside and
receives an offer from only one responsible small business concern at a reasonable price, the contracting officer
will normally make an award to that
concern. However, if the buying team
does not receive a reasonable offer

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1871.400

48 CFR Ch. 18 (10–1–02 Edition)

from a responsible small business concern, the buying team procurement
member may cancel the small business
set-aside and complete the acquisition
on an unrestricted basis utilizing MidRange procedures. If the acquisition is
a HUBZone set-aside and only one acceptable offer is received, the buying
team should proceed with the award in
accordance with FAR 19.1305(d). The
buying team procurement members
shall document in the file the reason
for the unrestricted purchase.
(g) Each model contract under a
small business MidRange set-aside
shall contain the clause at FAR 52.219–
6, Notice of Total Small Business SetAside.
(h) Each model contract under a
HUBZone MidRange set-aside shall
contain the clause at FAR 52.219–3, Notice of Total HUBZone Set-Aside.
[63 FR 71604, Dec. 29, 1998, as amended at 64
FR 19927, Apr. 23, 1999]

Subpart 1871.4—Request for Offer
(RFO)
1871.400

General.

In MidRange procedures, solicitation
of sources shall be accomplished by use
of an RFO. The RFO will be solely a solicitation document incorporating only
those elements of information required
to solicit the offer. Offers will be provided on a model contract furnished
with the RFO.
1871.401

Types of RFO’S.

The RFO may be used for all types of
procurements to which MidRange is applicable. The distinguishing difference
will be the evaluation and award criteria specified in the RFO. This, in
turn, will be driven by the buying
team’s decisions on the extent of discussion required, the amount of nonprice factors that will influence the
award and the amount of competition
available. If the conditions in FAR
6.401(a) are met, the RFO’s described in
1871.401–1 and 1871.401–2 shall be used;
otherwise, RFO’s described in 1871.401–
3, 1871.401–4, 1871.401–5, or 1871.401–6
may be used. Once the evaluation and
award criteria have been specified in
the RFO, the procurement must conform to the procedures applicable to

these criteria, unless changed by formal amendment to the RFO.
1871.401–1

Sealed offers.

(a) Policy. RFO’s may specify that
award will be made to the low, responsive, responsible offeror providing the
most advantageous offer considering
only price and price-related factors.
This method shall be used when (1)
time permits the solicitation, submission, and evaluation of sealed offers; (2)
award will be made on the basis of
price and other price-related factors;
(3) conducting discussions with the
offerors is not necessary; and (4) a reasonable expectation of receiving more
than one offer exists. The RFO shall be
in compliance with the requirements of
FAR part 14 relating to Sealed Bidding.
(b) Procedures. (1) The RFO shall request offerors to provide a complete
offer by the closing date specified.
(2) In accordance with FAR part 14,
offers (whether received by facsimile or
sealed envelope delivery) shall be publicly opened at the designated time and
place. Interested members of the public
will be permitted to attend the opening. Offers shall be abstracted pursuant
to FAR part 14 and be available for
public inspection. The abstract shall be
included in the contract file.
(3) All offers shall be examined for
mistakes in accordance with FAR
14.407–1 and 14.407–2. The buying team
shall determine that a prospective contractor is responsible and that the
prices offered are reasonable (see FAR
14.408–2).
(4) The Government will award a contract to the low, responsive, responsible offeror, whose offer conforms to
the RFO and will be most advantageous to the Government, considering only price and the price-related
factors included in the solicitation.
(5) When proceeding with an unrestricted acquisition see—
(i) FAR Subpart 19.11 regarding use
of the price evaluation adjustment for
small disadvantaged business (SDB)
concerns; and
(ii) FAR Subpart 19.13 regarding use
of the price evaluation preference for
HUBZone small business concerns.
[61 FR 55758, Oct. 29, 1996, as amended at 64
FR 19927, Apr. 23, 1999]

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National Aeronautics and Space Administration
1871.401–2 Two-step competitive acquisition.
(a) Policy. (1) RFO’s may specify that
evaluation and award may be conducted in two distinct steps, similar in
concept to ‘‘Two Step Sealed Bidding.’’
The MidRange Two Step process should
be used when it is desirable to award to
the lowest, responsive, responsible offeror after determining that the initial
technical offer, or the revised technical
offer, is acceptable.
(2) The procedures of FAR 14.503–2(a)
shall be used once Step Two of this
process begins.
(b) Procedures. (1) The RFO shall request offerors to provide both a technical and a price offer by the closing
date specified. Price offers are requested to ensure that they are accomplished in a timely manner and to reduce the time required for Step Two.
(2) Step One. The technical offer will
be evaluated to determine if the product or service offered is acceptable.
The buying team may proceed directly
to Step Two if there are sufficient acceptable offers to ensure adequate
price competition, and if further time,
effort and delay to make additional offers acceptable and thereby increase
competition would not be in the Government’s interest. If this is not the
case, the buying team procurement
member shall enter into discussions
and request offeror(s) whose offer(s) is
susceptible to being made acceptable
to submit additional clarifying or
supplementing information to make it
acceptable (see FAR 14.503–1). It is expected that these discussions will be
conducted on an informal basis. After
completion of discussions, the buying
team shall proceed to Step Two.
(3) Step Two. If discussions were
held, the buying team shall afford all
offerors who have submitted acceptable
offers and those offers with whom discussions were conducted, an opportunity, by a common date, to revise
their price offers. No changes to technical offers will be permitted during
this process. A reasonable amount of
time (normally less than 5 working
days) will be afforded for the revision.
The amount of time given shall be the
same for each offeror. The procedures
at 1871.401–1(b) (2) and (3) shall then be
followed.

1871.401–3

(4) The Government will award a contract to the low, responsive, responsible offeror, whose offer conforms to
the RFO and will be most advantageous to the Government, considering only price and the price-related
factors included in the solicitation.
(5) When proceeding with an unrestricted acquisition see—
(i) FAR Subpart 19.11 regarding use
of the price evaluation adjustment for
SDB concerns; and
(ii) FAR Subpart 19.13 regarding use
of the price evaluation preference for
HUBZone small business concerns.
[61 FR 55758, Oct. 29, 1996, as amended at 64
FR 19927, Apr. 23, 1999]

1871.401–3 Competitive negotiated acquisition not using qualitative criteria.
(a) Policy. (1) RFO’s may provide for
discussion of all aspects of the offer but
award is based on the technically acceptable offer having the lowest price
(if fixed price) or the lowest most probable cost (if cost reimbursable). This
method should be used when qualitative factors are not material in the
award decision, but it is important to
assure that technical offers and contract terms are fully compliant with
the Government’s needs. This method
also permits direct discussion of price
with offerors and is particularly appropriate when different approaches can
be offered to satisfy the Government’s
need.
(2) The RFO should reserve the right
to award without discussion based on
the initial offers submitted. FAR
52.215–1, will be included in all RFO’s
for competitive negotiated procurements not using qualitative criteria except for solicitations for commercial
item acquisitions.
(3) See FAR 15.304, FAR 15.305(a)(2),
and 1815.305(a)(2) regarding the evaluation of past performance.
(4) When proceeding with an unrestricted acquisition see—
(i) FAR Subpart 19.11 regarding use
of the price evaluation adjustment for
SDB concerns; and
(ii) FAR Subpart 19.13 regarding use
of the price evaluation preference for
HUBZone small business concerns.

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1871.401–4

48 CFR Ch. 18 (10–1–02 Edition)

(b) Procedures. (1) The RFO shall request offerors to provide both a technical and a price offer by the closing
date specified.
(2) Initial evaluation. The buying team
shall review each offer to determine if
all required information has been provided. No further evaluation shall be
made of any offer that is deemed unacceptable because it does not meet the
technical requirements of the RFO and
is not reasonably susceptible to being
made so. Offerors may be contacted for
clarification purposes only during the
initial evaluation. Offerors determined
not to be acceptable shall be notified of
their rejection and the reasons therefore and excluded from further consideration. Documentation for such rejection should consist of one or more succinct statements of fact that show the
offer is not acceptable. No documentation is required if all offers are deemed
to be acceptable or reasonably susceptible to being made so.
(3) Determination of finalists. From
among the acceptable offers and those
susceptible to being made acceptable,
the buying team shall rank the offers
based on price (or most probable cost)
and exclude any whose price/most probable cost precludes any reasonable
chance of being selected for final
award. The remaining offers constitute
the ‘‘finalists’’ for the contract. Only
in exceptional cases will this number
be less than two offers. The procurement buying team member shall succinctly record the basis for the decision.
(4) Discussions. The procurement buying team member shall lead discussions
with each finalist. The discussions are
intended to assist the buying team in
fully understanding each finalist’s offer
and to assure that all finalists are competing equally on the basis intended.
Care must be exercised to ensure these
discussions adhere, to the extent applicable, to the guidelines set forth in
FAR 15.306. It is expected that discussions will be conducted on an informal
basis with each finalist. After completion of discussions, each finalist shall
be afforded an opportunity to revise its
offer to support and clarify its offer. A
reasonable amount of time (Normally
less than 5 working days) will be afforded for the revision. The amount of

time given shall be the same for each
finalist. Such discussions are not required if there are sufficient acceptable
offers to ensure adequate price competition, and if further time, effort and
delay to make additional proposals acceptable and thereby increase competition, would not be in the Government’s
interest.
(5) Selection. The procurement team
member shall be the source selection
official. The source selection official
may elect to make selection in lieu of
determining finalists provided that it
can be demonstrated that (i) selection
of an initial offer(s) will result in the
lowest price/cost to the Government
and (ii) discussions with other acceptable offerors are not anticipated to
change the outcome of the initial evaluation relative to evaluated price/cost.
It is expected that the source selection
statement will not ordinarily exceed
one page and that the basis for the decision will be apparent upon review of
the informal worksheets used in the
evaluation process. These informal
worksheets shall be included in the
contract file.
(6) The names of offerors determined
to be finalists or the name of the offeror selected for contract award will be
electronically
transmitted
to
all
offerors. This will serve as notification
to those offers that were not selected
for further evaluation (see 1871.505).
[61 FR 55758, Oct. 29, 1996, as amended at 63
FR 9966, 9967, Feb. 27, 1998; 64 FR 19927, Apr.
23, 1999]

1871.401–4 Competitive
negotiations
using qualitative criteria (Best
Value Selection).
(a) Policy. (1) MidRange procurements shall normally use the BVS
source selection method, prescribed in
part 1871, subpart 1871.6, when it is desirable to base evaluation and award on
a combination of price and non-price
qualitative criteria.
(2) The RFO should reserve the right
to award without discussion based on
the initial offers submitted. FAR
52.215–1, will be included in all RFO’s
for competitive negotiated procurements using qualitative criteria except
for solicitations for commercial item
acquisitions.

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National Aeronautics and Space Administration
(3) In exceptionally complex procurements, a source selection method other
than MidRange Best Value Selection
may be more appropriate. This may be
appropriate in cases in which the following factors cannot be accommodated within the MidRange/BVS selection methodology:
(i) The ability to predefine the value
characteristics that will constitute the
discriminators among the offers;
(ii) The complexity of the interrelationships that must be evaluated;
(iii) The number of evaluators required to address the disciplines that
will be involved in the offers; or
(iv) The impact that the procurement
may have on higher level mission management (level of selection official) or
future procurements.
(4) See FAR 15.304, FAR 15.305(a)(2),
and 1815.305(a)(2) regarding the evaluation of past performance.
(5) When proceeding with an unrestricted acquisition see—
(i) FAR Subpart 19.11 regarding use
of the price evaluation adjustment for
SDB concerns. SDB concerns that
choose the FAR 19.11 price evaluation
adjustment shall receive no consideration under a MidRange BVS value
characteristic that addresses the FAR
19.1202 SDB participation evaluation;
(ii) FAR 19.1202 regarding the evaluation of the participation of SDB concerns in performance of the contract.
For BVS MidRange acquisitions, SDB
participation shall be evaluated as a
BVS
value
characteristic
(see
1871.603(b)); and
(iii) FAR Subpart 19.13 regarding use
of the price evaluation preference for
HUBZone small business concerns.
(b) Procedures. (1) The buying team
will determine which of the source selection methodologies is most appropriate to the specific procurement.
(2) The team shall record its rationale for selecting a methodology rather
than BVS. Once this decision is made,
the team shall no longer function as a
MidRange buying team, but shall follow the instructions prescribed in the
local procedures for the source selection method.
[61 FR 55758, Oct. 29, 1996, as amended at 63
FR 9966, 9967, Feb. 27, 1998; 64 FR 19928, Apr.
23, 1999]

1871.402

1871.401–5 Noncompetitive
negotiations.
(a) Policy. (1) The RFO may be used
as the solicitation method for noncompetitive procurements.
(2) MidRange procedures may be used
in noncompetitive acquisitions to the
extent they are applicable.
(b) Procedures.
(1) The buying team shall request
pricing information in accordance with
FAR 15.402 and 15.403.
(2) The technical member of the buying team shall provide technical assistance to the procurement member during evaluation and negotiation of the
contractor’s offer.
[61 FR 55758, Oct. 29, 1996, as amended at 64
FR 19928, Apr. 23, 1999]

1871.401–6 Commercial items.
(a) Policy. (1) MidRange procedures
are considered consistent with the requirements of FAR part 12, Acquisition
of Commercial Items. In the event of a
conflict, however, FAR part 12 takes
precedence.
(2) MidRange procedures may also be
used, to the extent applicable, for commercial item acquisitions accomplished under FAR subpart 13.5, Text
Program for Certain Commercial
Items.
(3) Contract type shall be in accordance with FAR 12.207.
(b) Procedures. The offices will be
evaluated in accordance with applicable procedures, and shall include consideration of technical, past performance, and price.
[61 FR 55758, Oct. 29, 1996, as amended at 62
FR 4477, Jan. 30, 1997; 63 FR 71604, Dec. 29,
1998]

1871.402 Preparation of the RFO.
(a) The RFO shall provide all standard information required for the offeror
to submit an offer.
(b) The RFO shall contain space for
all necessary additional instructions to
offerors. As a minimum, the RFO shall
contain the following:
(1) Incorporation by reference of all
required standard provisions.
(2) A provision notifying offerors that
standard Representations and Certifications will be required.
(3) Evaluation and award criteria.

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1871.404

48 CFR Ch. 18 (10–1–02 Edition)

(4) A provision requiring offerors to
submit offers on an attached model
contract.
(c) Requirements for the content and
format of the offer should be the minimum required to provide for proper
evaluation. Offerors’ formats should be
allowed to the maximum extent possible.
(d) Facsimile offers, defined by FAR
14.202–7 and FAR 15.203(d), are authorized for MidRange procurements.

1871.502 Determination of responsible
contractor.

[61 FR 55758, Oct. 29, 1996, as amended at 63
FR 9967, Feb. 27, 1998]

1871.504

1871.404 Protection of offers.
A facsimile machine(s) shall be dedicated for receipt of offers and placed in
a secure location where offers received
on it can be safeguarded. All offers submitted shall be recorded, sealed in an
envelope marked with the RFO number
and taken to the buying team procurement member. Facsimile attendants
shall make a good faith effort to inspect the document for completeness
and legibility. If the attendant believes
there are missing or illegible pages, the
document will be promptly referred to
the buying team procurement member
for notification to the offeror that it
should resubmit the offer. The Government shall not assume responsibility
for proper transmission.

Subpart 1871.5—Award

Contractor responsibility shall be determined in accordance with FAR part
9.
1871.503

Negotiation documentation.

The prenegotiation memorandum, if
required, and the results of negotiation
will be in abbreviated form and will be
approved by the buying team.
Award documents.

Contract award shall be accomplished by contracting officer execution of the contract document and providing a paper copy to the successful
offeror. If facsimile documents were
used in the evaluation process, the successful offeror may be required to execute original copies of the contract to
facilitate legibility during the administration phase of the contract.
1871.505 Notifications to unsuccessful
offerors.
For solicitations that were posted on
the NAIS, a preaward notice shall be
electronically transmitted to the
offerors. In addition, contracting officers shall comply with the preaward
notices for small business programs in
FAR 15.503(a)(2).
[64 FR 19928, Apr. 23, 1999]

1871.501 Representations and certifications.
Upon determination of the successful
offeror, the buying team procurement
member will determine if the offeror
has on file valid Representations and
Certifications. If the offeror has not
completed the required forms, or they
have expired, the offeror will be requested to provide the forms promptly.
Should the offeror refuse to provide the
required Representations and Certifications or fail to meet a required condition, the buying team shall reject the
offer and proceed to the next highest
ranked offeror who is responsive and
responsible.

1871.506

Publication of award.

An award notice shall be posted on
the NAIS for 7 calendar days after
posting, if the contract offers subcontracting opportunities or if it is subject
to the Trade Agreements Act. The information required by FAR 5.207 shall
be included in the award notice in abbreviated form.
1871.507 Debriefing
offerors.

of

unsuccessful

The procurement buying team member shall conduct debriefings if requested.

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National Aeronautics and Space Administration

Subpart 1871.6—‘‘Best Value
Selection’’
1871.601

General.

(a) Best Value Selection (BVS) seeks
to select an offer based on the best
combination of price and qualitative
merit of the offers submitted and reduce the administrative burden on the
offerors and the Government.
(b) BVS takes advantage of the lower
complexity of MidRange procurements
and predefines the value characteristics which will serve as the discriminators among offers. It eliminates the use
of area evaluation factors and the highly structured scoring.
1871.602 Specifications for MidRange
procurements.
BVS refines the traditional approach
to preparing specifications. BVS envisions that the requirement will focus
on the end result that is to be achieved
and will serve as a statement of the
Government’s baseline requirements.
The offeror will be guided in meeting
the Government’s needs by a separate
set of value characteristics which establish what the Government considers
to be valuable in an offer beyond the
baseline requirement. These value
characteristics will be performance
based and will permit the selection of
the offer which provides better results
for a reasonable marginal increase in
price.
[64 FR 36606, July 7, 1999]

1871.603 Establishment of evaluation
criteria.
(a) The requiring organization will
provide, along with the requirement, a
list of value characteristics against
which the offers will be judged. There
is no limit to the number or the type of
characteristics that may be specified.
The only standard will be whether the
characteristic is rationally related to
the need specified in the specification.
Characteristics may include such factors as improved reliability, innovativeness of ideas, speed of service, demonstrated delivery performance, higher
speeds, ease of use, qualifications of
personnel, solutions to operating problems, level of service provided on previous similar contracts, or any of nu-

1871.604–1

merous other characteristics that may
be of value to the Government in satisfying its needs.
(b) For unrestricted acquisitions,
small disadvantaged business (SDB)
participation shall be evaluated as a
BVS value characteristic (see FAR
19.1202–3). In order to receive consideration under the value characteristic,
the offeror must propose a target for
SDB participation greater than the
baseline requirement. The baseline requirement for SDB participation is
zero or no SDB participation. SDB concerns that choose the price evaluation
adjustment under FAR 19.11 shall receive no consideration under this MidRange BVS value characteristic. Like
other value characteristics, offerors
meeting the baseline, but proposing no
value above the baseline, and which are
otherwise acceptable, are to be considered for award if they are finalists.
(c) Past performance may be included
as a value characteristic or considered
as a separate evaluation criteria. If
considered as a separate criterion, the
relative importance of past performance in relation to cost and technical
must be defined in the solicitation.
(d) Cost and technical will be considered equal in importance. The value
characteristics will not be assigned
weights.
(e) All subsequent evaluations will
consider these characteristics when determining the finalists or making the
final selection for award.
[61 FR 55758, Oct. 29, 1996, as amended at 64
FR 19928, Apr. 23, 1999]

1871.604

Evaluation phases.

1871.604–1

Initial evaluation.

(a) Offers will be reviewed to determine if all required information has
been provided and the offeror has made
a reasonable attempt to present an acceptable offer. Offerors may be contacted only for clarification purposes
during the initial evaluation. No further evaluation shall be made of any
offer that is deemed unacceptable because:
(1) It does not represent a reasonable
effort to address itself to the essential
requirements of the RFO or clearly
demonstrates that the offeror does not

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1871.604–2

48 CFR Ch. 18 (10–1–02 Edition)

understand the requirements of the
RFO;
(2) It contains major technical or
business deficiencies or omissions or
out-of-line costs which discussions
with the offeror could not reasonably
be expected to cure; or
(3) In R&D procurement, a substantial design drawback is evident in the
offer and sufficient correction or improvement to consider the offer acceptable would require virtually an entirely new offer.
(b) Offerors determined not to be acceptable shall be notified of their rejection and the reasons therefor and excluded from further consideration.
(c) Documentation. If it is concluded
that all offers are acceptable, then no
documentation is required and evaluation proceeds. If one or more offers are
not acceptable, the procurement member of the team will notify the offeror
of the rejection and the reasons therefor. The documentation should consist
of one or more succinct statements of
fact that show the offer is not acceptable.
1871.604–2 Determination
‘‘Finalists’’.

of

(a) All acceptable offers will be evaluated against the requirement and the
value characteristics. Based on this
evaluation, the team will identify the
finalists from among the offers submitted. Finalists will include the most
highly rated offerors in accordance
with FAR 15.306(c)(1) and 1815.306(c)(2).
Generally, finalists will include the
offer having the best price (or lowest
most probable cost) and the offer having the highest qualitative merit, plus
those determined to have the best combination of price and merit. Offers not
qualifying as finalists will be excluded
from the balance of the evaluation
process.
(b) The selection official may elect to
make selection in lieu of determining
finalists, provided it can be clearly
demonstrated that
(1) Selection of an initial offer(s) will
result in the best value for the Government, considering both price and nonprice qualitative criteria;
(2) Discussions with other acceptable
offerors are not anticipated to change

the outcome of the initial evaluation
relative to the best value offer(s), and
(3) The solicitation contains a provision permitting award without discussions.
(c) Documentation. If finalists are
identified as discussed in paragraph (a)
of this section, the documentation expected and required to result from this
phase of evaluation is approximately
one-quarter of a page for each finalist.
The documentation shall succinctly describe how the value characteristics in
the RFO were provided by the offeror
and cost/price considerations that
caused the offer to qualify as a finalist.
The evaluator(s) shall not be required
to justify why other offers provided
less qualitative merit. It is expected
that, should the decision be challenged,
the documented reason for selection,
when compared with the non-selected
offer, shall clearly demonstrate the difference that resulted in non-selection.
It is expected and recommended that
all informal worksheets used in the
evaluation process be included in the
contract file. When selection of the
successful offeror(s) is made, the buying team shall document the selection
in accordance with 1871.604–4(c).
(d) Offerors determined not to be finalists or not selected for contract
award will be electronically notified.
[61 FR 55758, Oct. 29, 1996, as amended at 63
FR 9966, Feb. 27, 1998]

1871.604–3 Discussions
‘‘Finalists’’.

with

(a) The procurement team member
shall lead discussions with each finalist. Care must be exercised to ensure
these discussions adhere, to the extent
applicable, to the guidelines set forth
in FAR 15.306. It is expected that these
discussions will be conducted on an informal basis with each finalist.
(b) After completion of discussions,
each finalist shall be afforded an opportunity to revise its offer. A reasonable
amount of time (normally less than 5
working days) will be afforded for the
revision. The amount of time given
shall be the same for each finalist.
[61 FR 55758, Oct. 29, 1996, as amended at 63
FR 9967, Feb. 27, 1998]

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National Aeronautics and Space Administration
1871.604–4 Selection of ‘‘Best Value’’
Offer.
(a) The procurement team member
shall be the source selection official.
(b) The BVS source selection is based
on the premise that, if all offers are of
approximately equal qualitative merit,
award will be made to the offer with
the lowest evaluated price (fixed-price
contracts) or the lowest most probable
cost (cost type contracts). However,
the Government will consider awarding
to an offeror with higher qualitative
merit if the difference in price is commensurate with added value. Conversely, the Government will consider
making award to an offeror whose offer
has lower qualitative merit if the price
(or cost) differential between it and
other offers warrant doing so.
(c) Documentation. Rationale for selection of the successful offeror shall
be recorded in a selection statement
which succinctly records the value
characteristics upon which selection
was made. The statement need not and
should not reveal details of the successful offer that are proprietary or
business sensitive. Since the value
characteristics are expressed in performance terms, the reasons for selection can focus on results to be
achieved, rather than the detailed approach the offeror will use. The statement shall also comment on the rationale used to equate cost and qualitative merit. Little or no additional
analysis is required when the selected
offeror possessed the highest merit and
lowest price. When a marginal analysis
is made between value characteristics
and price (or cost)—in most cases this
will be a subjective, integrated assessment of all pertinent factors—specific
rationale should be provided to the extent possible. It is expected that the
statement will not ordinarily exceed
one page. Where the procurement is
closely contested, it would be prudent
to expand on the rationale provided in
the statement.
(d) The name of the offeror(s) selected for award shall be electronically
transmitted to the offerors which will
serve as a notification to those offerors
that were not selected (see 1871.505).
The selection statement may be made
available at the buying team’s discretion.

Pt. 1872

PART 1872—ACQUISITIONS OF
INVESTIGATIONS
Sec.
1872.000

Scope of part.

Subpart 1872.1—The Investigation
Acquisition System
1872.101
1872.102
1872.103

General.
Key features of the system.
Management responsibilities.

Subpart 1872.2—Applicability of the
Process
1872.201 General.
1872.202 Criteria for determining applicability.
1872.203 Applicable programs and activities.
1872.204 Approval.

Subpart 1872.3—The Announcement of
Opportunity
1872.301 General.
1872.302 Preparatory effort.
1872.303 Responsibilities.
1872.304 Proposal opportunity period.
1872.305 Guidelines for Announcement of
Opportunity.
1872.306 Announcement of opportunity soliciting foreign participation.
1872.307 Guidelines for proposal preparation.

Subpart 1872.4—Evaluation of Proposals
1872.401 General.
1872.402 Criteria for evaluation.
1872.403 Methods of evaluation.
1872.403–1 Advisory subcommittee evaluation process.
1872.403–2 Contractor evaluation process.
1872.403–3 Government evaluation process.
1872.404 Engineering, integration, and management evaluation.
1872.405 Program office evaluation.
1872.406 Steering committee review.
1872.407 Principles to apply.

Subpart 1872.5—The Selection Process
1872.501
1872.502
1872.503
1872.504
1872.505

General.
Decisions to be made.
The selection statement.
Notification of proposers.
Debriefing.

Subpart 1872.6—Payload Formulation
1872.601

Payroll formulation.

Subpart 1872.7—Acquisition and Other
Considerations
1872.701

Early involvement essential.

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1872.000

48 CFR Ch. 18 (10–1–02 Edition)

1872.702 Negotiation, discussions, and contract award.
1872.703 Application of the Federal Acquisition Regulation (FAR) and the NASA
FAR Supplement.
1872.704 Other administrative and functional requirements.
1872.705 Format of Announcement of Opportunity (AO).
1872.705–1 Appendix A: General Instructions
and Provisions.
1872.705–2 Appendix B: Guidelines for Proposal Preparation.
1872.705–3 Appendix C: Glossary of Terms
and Abbreviations Associated with Investigations.
AUTHORITY: 42 U.S.C. 2473(c)(1).
SOURCE: 62 FR 4477, Jan. 30, 1997, unless
otherwise noted.

1872.000 Scope of part.
This part prescribes policies and procedures for the acquisition of investigations.

Subpart 1872.1—The Investigation
Acquisition System
1872.101 General.
The investigation acquisition system
encourages the participation of investigators and the selection of investigations which contribute most effectively
to the advancement of NASA’s scientific and technological objectives. It
is a system separate from the acquisition process, but requiring the same
management and discipline to assure
compliance with statutory requirements and considerations of equity.
1872.102 Key features of the system.
(a)(1) Use of the system commences
with the Enterprise Associate Administrator’s determination that the investigation acquisition process is appropriate for a program. An Announcement of Opportunity (AO) is disseminated to the interested scientific and
technical communities. The AO is a
form of broad agency announcement
(BAA) (see FAR 35.016 and 1835.016 for
general BAA requirements). This solicitation does not specify the investigations to be proposed but solicits investigative ideas which contribute to
broad objectives. In order to determine
which of the proposals should be selected, a formal competitive evaluation
process is utilized. The evaluation for

merit is normally made by experts in
the fields represented by the proposals.
Care should be taken to avoid conflicts
of interest. These evaluators may be
from NASA, other Government agencies, universities, or the commercial
sector. Along with or subsequent to the
evaluation for merit, the other factors
of the proposals, such as engineering,
cost, and integration aspects, are reviewed by specialists in those areas.
The evaluation conclusions as well as
considerations of budget and other factors are used to formulate a complement of recommended investigations. A steering committee, serving as
staff to the Enterprise Associate Administrator or designee when source
selection authority is delegated, reviews the proposed payload or program
of investigation, the iterative process,
and the selection recommendations.
The steering committee serves as a
forum where different interests, such
as flight program, discipline management, and administration, can be
weighed.
(2) The Program AA, or designee, selects the proposals that will participate in the program. Once selected, an
investigator is assigned appropriate responsibilities relating to the investigation through a contract with the institution. For foreign investigators, these
responsibilities will usually be outlined
in an agreement between NASA and
the sponsoring governmental agency in
the investigator’s country.
(b) The AO process provides a disciplined approach to investigation acquisition. The following major steps
must be followed in each case:
(1) The AO shall be signed by the Program AA and shall be widely distributed to the scientific, technological,
and applications user communities, as
appropriate.
(2) An evaluation team shall be
formed including recognized peers of
the investigators.
(3) A project office will be assigned to
assess the engineering, cost, integration, and management aspects of the
proposals.
(4) A program office will be responsible to formulate a complement of investigations consistent with the objectives stated in the AO, cost, and schedule constraints.

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National Aeronautics and Space Administration
(5) A steering committee appointed
by the appropriate Program AA shall
review the proposed investigations for
relevance and merit, will assure compliance with the system as described in
this Handbook, and make selection recommendations.
(6) The Source Selection Official
shall be the Program AA or the Program AA’s designee.
(c) Payloads will be formulated consisting
of
investigations
selected
through the AO process and/or other
authorized methods.
[62 FR 4477, Jan. 30, 1997, as amended at 64
FR 14641, Mar. 26, 1999]

1872.103

Management responsibilities.

(a) Program AAs are responsible for
overseeing the process and for making
key decisions essential to the process
including:
(1) Determination to use the investigation acquisition system.
(2) Appointment of the steering committee members.
(3) Designation of a staff to assure
uniformity in the issuance of the AO
and conformity with the required procedures in the evaluation and selection.
(4) Reuse, to the maximum extent
practicable, of space hardware and support equipment.
(5) Determination to use advisory
subcommittees, contractor, or fulltime Government employees only in
the evaluation process.
(6) Issuance of the AO.
(7) Selection of investigations and investigators, determination of need of a
definition phase, determination of the
role of the investigator with regard to
providing essential investigation hardware and services, and determination
of the need for payload specialists.
(8) Assure consideration is given to
minorities in the establishment of peer
groups, distribution of the AO and in
the selection of investigations.
(9) Provide a framework for cooperative foreign participation in Space
Shuttle, Spacelab, and Space Station
missions.
(b) The Program AA should call upon
any required experts throughout the
process.

1872.203

Subpart 1872.2—Applicability of
the Process
1872.201 General.
The system used for acquisition of investigations is separate from the agency procedures for acquisition of known
requirements. A decision to use this
special acquisition process will be
based on a determination that it is the
most suitable to meet program needs.
The decision-making official will consider the criteria for use of the system.
The project plan or other documentation should discuss the proposed mode
of investigations selection.
1872.202 Criteria for determining applicability.
(a) The decision to use the investigations acquisition process as an alternative to the normal planning and acquisition process can only be made
after consideration of the conditions
which require its use. All of the following conditions should exist before
deciding that the system is applicable:
(1) NASA has a general objective
which can be furthered through novel
experimental approaches. To develop
such approaches, NASA wishes to draw
upon the broadest possible reservoir of
ideas.
(2) Choices must be made among
competing ideas in expanding knowledge.
(3) Individual participation of an investigator is essential to exploitation
of the opportunity.
(b) The investigations acquisition
process shall not be used when any of
the
following
characteristics
are
present:
(1) The requiring office can define a
requirement sufficiently to allow for
normal acquisition.
(2) The program is extremely complex, requiring specialized integration,
coordination, or other special handling,
or extending over a lengthy period
wherein individual participation is not
essential.
1872.203 Applicable programs and activities.
The investigation acquisition process
is most suitable for investigations
aimed at exploration requiring several
unique sensors or instruments, but it

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1872.204

48 CFR Ch. 18 (10–1–02 Edition)

has been used successfully in the following types of activities:
(a) Exploration and space research
flights. (1) Examples include Space
Transportation System (STS) flights
with attached payloads, generally
Spacelab payloads; and free-flying
spacecraft, such as Explorers, Pioneers,
Space Telescope, Landsats, and Long
Duration Exposure Facilities.
(2) Types of opportunity include:
(i) Participation as a Principal Investigator (PI) responsible for conceiving
and conducting a space investigation
(This may involve a major piece of instrumentation. In the case of a
‘‘facility’’ or ‘‘multiuser’’ payload,
each PI’s responsibilities would ordinarily involve a relatively minor portion of the total instrument.);
(ii) An opportunity to serve on a PI’s
team as a member or Co-Investigator;
(iii) An opportunity that generally
involves the use of data from another
investigator’s instrument as a guest investigator or guest observer (Guest investigators usually participate after
the primary objectives have been satisfied for the investigations involved.);
and
(iv) A team formed from selected investigators to assist in defining
planned mission objectives and/or to
determine, in a general manner, the
most meaningful instruments to accomplish the mission objectives.
(3) The investigation acquisition
process may be applicable to all types
of opportunities. The supposition common in these opportunities is that the
best ideas and approaches are likely to
result from the broadest possible involvement of the scientific, technological or applications user communities.
(b) Minor missions. (1) Examples include research aircraft, sounding rockets, balloons, and minor missions that
are generally of short duration, small
in size, often single purpose, and subject to repetition. Many investigations
are follow-on to past-flight investigations.
(2) Types of opportunity include:
(i) PIs responsible for investigation;
and
(ii) Data use or analysis.
(3) Opportunities for participation on
minor missions are generally suitable

for normal acquisition procedures. The
use of an announcement describing the
general nature and schedule of flights
may be appropriate when considered
necessary to broaden participation by
requesting investigator-initiated research proposals. Normal acquisition
procedures shall be used for follow-on
repeat flights. Although NASA seeks
unique, innovative ideas for these missions, the prospect of reflight and the
latitude in determining number and
schedule of flights argue against the
need for the use of the investigations
acquisition process to force dissimilar
proposals into an annual or periodic
competitive structure. On the other
hand, there are some minor missions
addressed to specific limited opportunities; for example, a solar eclipse. When
such limitations indicate that the special competitive structure is needed, it
should be authorized.
(c) Operational and operational prototype spacecraft. (1) Examples include
spacecraft built for NASA and other
agencys’ missions.
(2) The user agency can be expected
to specify performance parameters.
Payload definition will be the responsibility of the user agency and NASA.
Specifications sufficient for normal acquisition procedures can be produced.
Use of data from the mission is the responsibility of the user agency. Thus,
the investigation acquisition process is
not required.
(d) Supporting Research and Technology (SR&T). (1) Examples include
studies, minor developments, instrument conceptualization, ground-based
observations, laboratory and theoretical supporting research, and data
reduction and analysis which is unconstrained by a specific opportunity.
(2) Programs in these areas tend to
go forward on a continuing basis, rather than exploiting unique opportunities. Normal acquisition procedures
should be used. A general announcement of area of interest could be made
when greater participation is deemed
advisable.
1872.204 Approval.
The Program AA is responsible for
determining whether or not to use the
investigations acquisition process. Normally on major projects, or when a

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National Aeronautics and Space Administration
project plan is required, use of the investigation acquisition system will be
justified and recommended in the
project planning documentation and
will be coordinated with staff offices
and discussed in the planning presentation to the Deputy Administrator or
designee.

Subpart 1872.3—The
Announcement of Opportunity
1872.301

General.

An announcement of opportunity
(AO) is characterized by its generality.
However, it is essential that the AO
contains sufficient data in order to obtain meaningful proposals. To a considerable extent, the detail and depth of
the AO will depend on the objective.
The purpose is to get adequate information to assess the relevance, merit,
cost, and management requirements
without overburdening the proposer.
1872.302

Preparatory effort.

(a) Headquarters offices and the responsible project installation must
consult prior to release of the AO.
(b) The program office shall:
(1) Synopsize the AO in the Commerce Business Daily and on the NAIS
prior to release.
(2) Determine if there is instrumentation or support equipment available
which may be appropriate to the AO
with all necessary background data
considered essential for use by a proposer;
(3) Determine mailing lists, including
the mailing list maintained by the
International Affairs Division, Office of
External Relations, for broad dissemination of the AO; and
(4) Assure mandatory provisions are
contained in the AO.
(c) Other methods of dissemination of
the AO may also be used, such as the
use of press releases, etc. When possible, the AO should be widely publicized through publications of appropriate professional societies; however,
NASA policy does not allow payment
for the placement of advertisements.
[62 FR 4477, Jan. 30, 1997, as amended at 63
FR 9966, Feb. 27, 1998]

1872.304

1872.303

Responsibilities.

(a) The program office originator is
responsible for the content of the AO
and coordination with concerned Headquarters offices and field installations.
All personnel involved in the evaluation of proposals are responsible for familiarizing themselves and complying
with this part and other applicable regulations. To this end, they are expected
to seek the advice and guidance of appropriate Headquarters program and
staff offices, and Project Installation
management.
(b) The Program Office is also responsible for coordinating the AO with the
International Affairs, Educational Affairs, Management Support Divisions,
Office of External Relations, Office of
General Counsel, Office of Safety and
Mission Assurance, and Office of Procurement prior to issuance (see NPD
1360.2, Initiation and Development of
International Cooperation in Space and
Aeronautical Programs).
(c) Concurrence of the Office of Procurement is required before issuance of
an AO.
[62 FR 4477, Jan. 30, 1977, as amended at 63
FR 32764, June 16, 1998; 64 FR 36606, July 7,
1999; 67 FR 61520, Oct. 1, 2002]

1872.304

Proposal opportunity period.

(a) The AO must accommodate to the
maximum extent practicable opportunities afforded by the Shuttle/Spacelab
flights. The following methods may be
used to enable an AO to be open for an
extended period of time and/or to cover
a series or range of flight possibilities
or disciplines:
(1) The AO may be issued establishing a number of proposal submission dates. Normally, no more than
three proposal submission dates should
be established. The submittal dates
may be spread over the number of
months most compatible with the possible flight opportunities and the availability of resources necessary to evaluate and fund the proposals.
(2) The AO may be issued establishing a single proposal submission
date. However, the AO could provide
that NASA amend the AO to provide
for subsequent dates for submission of
proposals, if additional investigations
are desired within the AO objectives.

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1872.305

48 CFR Ch. 18 (10–1–02 Edition)

(3) The AO may provide for an initial
submission date with the AO to remain
open for submission of additional proposals up to a final cutoff date. This
final date should be related to the
availability of resources necessary to
evaluate the continuous flow of proposals, the time remaining prior to the
flight opportunity(s) contemplated by
the AO, and payload funding and availability.
(b) Generally, a core payload of investigations would be selected from the
initial submission of proposals under
the above methods of open-ended AOs.
These selections could be final or tentative recognizing the need for further
definition. Proposals received by subsequent submission dates would be considered in the scope of the original AO
but would be subject to the opportunities and resources remaining available
or the progress being made by prior selected investigations.
(c) Any proposal, whether received on
the initial submission or subsequent
submission, requires notification to the
investigator and the investigator’s institution of the proposal disposition.
Some of the proposals will be rejected
completely and the investigators immediately notified. The remaining
unselected proposals may, if agreeable
with the proposers, be held for later
consideration and funding and the investigator so notified. However, if an
investigator’s proposal is considered at
a later date, the investigator must be
given an opportunity to validate the
proposal with the investigator’s institution and for updating the cost and
other data contained in the original
submission prior to a final selection. In
summary, NASA may retain proposals,
receiving Category I, II, or III classifications (see 1872.403–1(e)), for possible
later sponsorship until no longer feasible to consider the proposal. When
this final stage is reached, the investigator must be promptly notified. Proposing investigators not desiring their
proposals be held for later consideration should be given the opportunity
to so indicate in their original submissions.

1872.305 Guidelines for Announcement
of Opportunity.
(a) The AO should be tailored to the
particular needs of the contemplated
investigations and be complete in
itself. Each AO will identify the originating program office and be numbered
consecutively by calendar year, e.g.,
OA–1–95, OA–2–95; OLMSA–1–95; OSS–1–
95; etc. The required format and detailed instructions regarding the contents of the AO are contained in
1872.705.
(b) The General Instructions and Provisions, (see 1872.705–1) are necessary to
accommodate the unique aspects of the
AO process. Therefore, they must be
appended to each AO.
(c) At the time of issuance, copies of
the AO must be furnished to Headquarters, Office of Procurement (Code
HS) and Office of General Counsel
(Code GK).
(d) Proposers should be informed of
significant departures from scheduled
dates for activities related in the AO.
[62 FR 4477, Jan. 30, 1997, as amended at 64
FR 36606, July 7, 1999; 65 FR 82297, Dec. 28,
2000]

1872.306 Announcement
of
opportunity soliciting foreign participation.
Foreign proposals or U.S. proposals
with foreign participation shall be
treated in accordance with 1835.016–70.
Additional guidelines applicable to foreign proposers are contained in the
Management Plan Section of 1872.705–2
and must be included in any Guidelines
for Proposal Preparation or otherwise
furnished to foreign proposers.
[64 FR 48562, Sept. 7, 1999, as amended at 65
FR 82297, Dec. 28, 2000]

1872.307 Guidelines for proposal preparation.
While not all of the guidelines outlined in 1872.705–2 will be applicable in
response to every AO, the investigator
should be informed of the relevant information required. The proposal may
be submitted on a form supplied by the
Program Office. However, the proposal
should be submitted in at least two
sections:

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(a) Investigation and Technical Plan;
and
(b) Management and Cost Plan as described in 1872.705–2. Investigators shall
be required to identify and discuss risk
factors and issues throughout the proposal where they are relevant, and describe their approach to managing
these risks.
[65 FR 82297, Dec. 28, 2000, as amended at 67
FR 61520, Oct. 1, 2002]

Subpart 1872.4—Evaluation of
Proposals
1872.401

General.

(a) The evaluation process considers
the aspects of each proposal by the following progressive sorting:
(1) A review resulting in a categorization is performed by using one of the
methods or combination of the methods outlined in 1872.403. The purpose of
this initial review is to determine the
scientific and/or technological merit of
the proposals in the context of the AO
objectives.
(2) Those proposals which are considered to have the greatest scientific or
technological merit are then reviewed
in detail for the engineering, management, and cost aspects, usually by the
project office at the installation responsible for the project.
(3) Final reviews are performed by
the program office and the steering
committee and are aimed at developing
a group of investigations which represent an integrated payload or a wellbalanced program of investigation
which has the best possibility for meeting the AO’s objectives within programmatic constraints.
(b) The importance of considering the
interrelationship of the several aspects
of the proposals to be reviewed in the
process and the need for carefully planning their treatment should not be
overlooked. An evaluation plan should
be developed before issuance of the AO.
It should cover the recommended staffing for any subcommittee or contractor support, review guidelines as
well as the procedural flow and schedule of the evaluation. While not mandatory, such a plan should be considered for each AO. A fuller discussion of
the evaluation and selection process is

1872.402

included in the following sections of
this subpart.
1872.402 Criteria for evaluation.
(a) Each AO must indicate those criteria which the evaluators will apply in
evaluating a proposal. The relative importance of each criterion must also be
stated. This information will allow investigators to make informed judgments in formulating proposals that
best meet the stated objectives.
(b) Following is a list of general evaluation criteria appropriate for inclusion in most AOs:
(1) The scientific, applications, and/
or technological merit of the investigation.
(2) The relevance of the proposed investigation to the AO’s stated scientific, applications, and/or technological objectives.
(3) The competence and experience of
the investigator and any investigative
team.
(4) Adequacy of whatever apparatus
may be proposed with particular regard
to its ability to supply the data needed
for the investigation.
(5) The reputation and interest of the
investigator’s institution, as measured
by the willingness of the institution to
provide the support necessary to ensure that the investigation can be completed satisfactorily.
(6) Cost and management aspects will
be considered in all selections.
(7) The proposed approach to managing risk (e.g., level of technology maturity being applied or developed, technical complexity, performance specifications and tolerances, delivery
schedule, etc.).
(8) Other or additional criteria may
be used, but the evaluation criteria
must be germane to the accomplishment of the stated objectives.
(c) Once the AO is issued, it is essential that the evaluation criteria be applied in a uniform manner. If it becomes apparent, before the date set for
receipt of proposals, that the criteria
or their relative importance should be
changed, the AO will be amended, and
all known recipients will be informed
of the change and given an adequate
opportunity to consider it in submission of their proposals. Evaluation criteria and/or their relative importance

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48 CFR Ch. 18 (10–1–02 Edition)

will not be changed after the date set
for receipt of proposals.
[62 FR 4472, Jan. 30, 1997, as amended at 67
FR 61520 Oct. 1, 2002]

1872.403 Methods of evaluation.
Alternative methods are available to
initiate the evaluation of proposals received in response to an AO. These are
referred to as the Advisory Subcommittee Evaluation Process, the
Contractor Evaluation Process, and the
Government Evaluation Process. In all
processes, a subcommittee of the appropriate Program Office Steering
Committee will be formed to categorize
the proposals. Following categorization, those proposals still in consideration will be processed to the selection
official.
1872.403–1 Advisory
subcommittee
evaluation process.
(a) Evaluation of scientific and/or
technological merit of proposed investigations is the responsibility of an advisory subcommittee of the Steering
Committee. The subcommittee constitutes a peer group qualified to judge
the scientific and technological aspects
of all investigation proposals. One or
more subcommittees may be established depending on the breadth of the
technical or scientific disciplines inherent in the AO’s objectives. Each
subcommittee represents a discipline
or grouping of closely related disciplines. To maximize the quality of
the subcommittee evaluation and categorization, the following conditions of
selection and appointment should be
considered.
(1) The subcommittee normally
should be established on an ad hoc
basis.
(2) Qualifications and acknowledgment of the professional abilities of the
subcommittee members are of primary
importance. Institutional affiliations
are not sufficient qualifications.
(3) The executive secretary of the
subcommittee must be a full-time
NASA employee.
(4) Subcommittee members should
normally be appointed as early as possible and prior to receipt of proposals.
(5) Care must be taken to avoid conflicts of interest. These include financial interests, institutional affili-

ations, professional biases and associations, as well as familiar relationships.
Conflicts could further occur as a result of imbalance between Government
and non-Government appointees or
membership from institutions representing a singular school of thought
in discipline areas involving competitive theories in approach to an investigation.
(6) The subcommittee should convene
as a group in closed sessions for proposal evaluation to protect the proposer’s proprietary ideas and to allow
frank discussion of the proposer’s
qualifications and the merit of the proposer’s ideas. Lead review responsibility for each proposal may be assigned to members most qualified in
the involved discipline. It is important
that each proposal be considered by the
entire subcommittee.
(b) It may not be possible to select a
subcommittee fully satisfying all of
the conditions described in paragraph
(a) of this section. It is the responsibility of the nominating and appointing officials to make trade-offs, where
necessary, among the criteria in paragraph (a) of this section. This latitude
permits flexibility in making decisions
in accord with circumstances of each
application. In so doing, however, it is
emphasized that recognized expertise
in evaluating dissimilar proposals is
essential to the continued workability
of the investigation acquisition process.
(c) Candidate subcommittee members
should be nominated by the office having responsibility for the evaluation.
Nominations should be approved in accordance with NMI 1150.2, ‘‘Establishment, Operation, and Duration of
NASA Advisory Committees.’’ The notification of appointment should specify the duration of assignment on the
subcommittee, provisions concerning
conflicts of interest, and arrangements
regarding honoraria, per diem, and
travel when actually employed.
(d) It is important that members of
the subcommittee be formally instructed as to their responsibilities
with respect to the investigation acquisition process, even where several or
all of the members have served previously. This briefing of subcommittee
members should include:

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National Aeronautics and Space Administration
(1) Instruction of subcommittee
members on agency policies and procedures pertinent to acquisition of investigations.
(2) Review of the program goals, AO
objectives, and evaluation criteria, including relative importance, which
provide the basis for evaluation.
(3) Instruction on the use of preliminary proposal evaluation data furnished by the Installation Project Office. The subcommittee should examine
these data to gain a better understanding of the proposed investigations, any associated problems, and to
consider cost in relation to the value of
the investigations’ objectives.
(4) Definition of responsibility of the
subcommittee for evaluation and categorization with respect to scientific
and/or technical merit in accordance
with the evaluation criteria.
(5) Instruction for documentation of
deliberations and categorizations of
the subcommittee.
(6) Inform the chairperson of the subcommittee and all members that they
should familiarize themselves with the
provisions of the Standards of Ethical
Conduct for Employees of the Executive Branch, 5 CFR part 2635, and the
Supplemental Standards of Ethical
Conduct for employees of the National
Aeronautics and Space Administration,
5 CFR part 6901, regarding conflicts of
interest. Members should inform the
appointing authority if their participation presents a real or apparent conflict of interest situation. In addition,
all participants should inform the selection official in the event they are
subjected to pressure or improper contacts.
(7) Inform members that prior to the
selection and announcement of the successful investigators and investigations, subcommittee members and
NASA personnel shall not reveal any
information concerning the evaluation
to anyone who is not also participating
in the same evaluation proceedings,
and then only to the extent that such
information is required in connection
with such proceedings. Also, inform
members that subsequent to selection
of an investigation and announcement
of negotiations with the investigator’s
institution, information concerning
the proceedings of the subcommittee

1872.403–1

and data developed by the subcommittee will be made available to
others within NASA only when the requestor demonstrates a need to know
for a NASA purpose. Such information
will be made available to persons outside NASA including other Government
agencies, only when such disclosure is
concurred in by the Office of General
Counsel. In this connection, reference
is made to 18 U.S.C. 1905 which provides
criminal sanctions if any officer or employee (including special employees) of
the United States discloses or divulges
certain kinds of business confidential
and trade secret information unless authorized by law.
(e) The product of an advisory subcommittee is the classification of proposals into four categories. The categories are:
(1) Category I—Well conceived and
scientifically and technically sound investigations pertinent to the goals of
the program and the AO’s objectives
and offered by a competent investigator from an institution capable of
supplying the necessary support to ensure that any essential flight hardware
or other support can be delivered on
time and that data can be properly reduced, analyzed, interpreted, and published in a reasonable time. Investigations in Category I are recommended
for acceptance and normally will be
displaced only by other Category I investigations.
(2) Category II—Well conceived and
scientifically or technically sound investigations which are recommended
for acceptance, but at a lower priority
than Category I.
(3) Category III—Scientifically and
technically sound investigations which
require further development. Category
III investigations may be funded for development and may be reconsidered at
a later time for the same or other opportunities.
(4) Category IV—Proposed investigations which are recommended for rejection for the particular opportunity
under consideration, whatever the reason.
(f) A record of the deliberations of
the subcommittee shall be prepared by
the assigned executive secretary and
shall be signed by the Chairperson. The

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1872.403–2

48 CFR Ch. 18 (10–1–02 Edition)

minutes shall contain the categorizations with basic rationale for such ratings and the significant strengths and
weaknesses of the proposals evaluated.
1872.403–2 Contractor evaluation process.
(a) The use of the contractor method
for obtaining support for evaluation
purposes of proposals received in response to an AO requires the approval
of the Program AA. Prior to the use of
this method, discussion should be held
with the Office of Acquisition.
(b) It is NASA policy to avoid situations in the acquisition process where,
by virtue of the work or services performed for NASA, or as a result of data
acquired from NASA or from other entities, a particular company:
(1) Is given an unfair competitive advantage over other companies with respect to future NASA business;
(2) Is placed in position to affect Government actions under circumstances
in which there is potential that the
company’s judgment may be biased; or
(3) Otherwise finds that a conflict exists between the performance of work
or services for the Government in an
impartial manner and the company’s
own self-interest.
(c) To reduce the possibility of an organizational conflict of interest problem arising, the following minimum restrictions will be incorporated into the
contract:
(1) No employee of the contractor
will be permitted to propose in response to the AO;
(2) The ‘‘Limitation on Future Contracting’’ clause contained in 1852.209–
71 will be included in all such contracts; and
(3) Unless authorized by the NASA
contracting officer, the contractor
shall not contact the originator of any
proposal concerning its contents.
(d) The scope of work for the selected
contractor will provide for an identification of strengths and weaknesses
and a summary of the proposals. The
contractor will not make selections
nor recommend investigations.
(e) The steps to be taken in establishing evaluation panels and the responsibilities of NASA and the contractor in relation to the panels will be
as follows:

(1) The contractor will be required to
establish and provide support to panels
of experts for review of proposals to
evaluate their scientific and technical
merit;
(2) These panels will be composed of
scientists and specialists qualified to
evaluate the proposals;
(3) The agency may provide to the
contractor lists of scientist(s) and specialist(s) in the various disciplines it
believes are qualified to serve on the
panels;
(4) The contractor will report each
panel’s membership to NASA for approval; and
(5) The contractor must make all the
necessary arrangements with the panel
members.
(f) The evaluation support by the
contractor’s panels of experts will be
accomplished as follows:
(1) The panels will review the scientific and technical merit of the proposals in accordance with the evaluation criteria in the AO and will record
their strengths and weaknesses;
(2) The contractor will make records
of each panel’s deliberations which will
form the basis for a report summarizing the results of the evaluations.
Upon request, the contractor shall provide all such records to NASA;
(3) The chairperson of each panel
shall certify that the evaluation report
correctly represents the findings of the
review panel; and
(4) A final report will be submitted as
provided in the contract.
(g) A subcommittee of the Program
Office Steering Committee will be established on an ad hoc basis. Utilizing
furnished data, the subcommittee will
classify the proposals into the four categories enumerated in 1872.403–1(e)(1),
Advisory Subcommittee Evaluation
Process. A record of the deliberations
of the subcommittee should be prepared by an assigned executive secretary and signed by the chairperson.
The minutes should contain the categorizations with the basic rationale
for such ratings and the significant
strengths and weaknesses of the proposals evaluated.
[62 FR 4477, Jan. 30, 1997, as amended at 63
FR 9966, Feb. 27, 1998]

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National Aeronautics and Space Administration
1872.403–3 Government
process.

evaluation

(a) The Program AA may, in accordance with NMI 1150.2, appoint one or
more full-time Government employees
as subcommittee members of the Program Office Steering Committee to
evaluate and categorize the proposals.
(b) Each subcommittee member
should be qualified and competent to
evaluate the proposals in accordance
with the AO evaluation criteria. It is
important that a subcommittee’s evaluation not be influenced by others either within or outside of NASA.
(c) The subcommittee members will
not contact the proposers for additional information.
(d) The subcommittee members will
classify the proposals in accordance
with the four categories indicated in
1872.403–1(e)(1). Each categorization
will be supported by an appropriate rationale including a narrative of each
proposal’s strengths and weaknesses.
1872.404 Engineering, integration, and
management evaluation.
(a) The subcommittee responsible for
categorization of each proposal in
terms of its scientific applications, or
technical merit should receive information on probable cost, technical status, developmental risk, integration
and safety problems, and management
arrangements in time for their deliberations.
(b) This information should be provided at the discretion of the Headquarters Program Office by the Project
Office at the installation. This information can be in general terms and
should reflect what insights the
Project Office can provide without requesting additional details from the
proposers. This limited Project Office
review will not normally give the subcommittees information of significant
precision. The purpose is to give the
subcommittee sufficient information
so it can review the proposals in conjunction with available cost, integration, and management considerations
to gain an impression of each investigator’s understanding of the problems of the experiment and to permit
gross trade-offs of cost versus value of
the investigation objective.

1872.404

(c) Following categorization, the
Project Office shall evaluate proposals
in contention, in depth, including a
thorough review of each proposal’s engineering, integration, management,
and cost aspects. This review should be
accomplished by qualified engineering,
cost, and business analysts at the
project center.
(d) In assessing proposed costs, the
evaluation must consider:
(1) The investigation objective.
(2) Comparable, similar or related investigations.
(3) Whether NASA or the investigator
should procure the necessary supporting instrumentation or services
and the relative cost of each mode.
(4) Total overall or probable costs to
the Government including integration
and data reduction and analysis. In the
case of investigations proposed by Government investigators, this includes all
associated direct and indirect cost.
With respect to cooperative investigations, integration, and other applicable
costs should be considered.
(e) The Project Office, as part of the
in-depth evaluation of proposals that
require instrumentation or support
equipment, will survey all potential
sources for Government-owned instrumentation or support equipment that
may be made available, with or without modifications, to the potential investigator. Such items contributed by
foreign cooperating groups which are
still
available
under
cooperative
project agreements will also be considered for use under the terms and conditions specified in the agreements. As
part of the evaluation report to the
Program Office, the availability or
nonavailability of instrumentation or
support equipment will be indicated.
(f) Proposals which require instrumentation should be evaluated by
project personnel. This evaluation
should cover the inter-faces and the assessment of development risks. This
evaluation should furnish the selection
official with sufficient data to contribute to the instrument determinations. Important among these are:
(1) Whether the instrument requires
further definition;
(2) Whether studies and designs are
necessary to provide a reasonably accurate appreciation of the cost;

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1872.405

48 CFR Ch. 18 (10–1–02 Edition)

(3) Whether the investigation can be
carried out without incurring undue
cost, schedule, or risk of failure penalties; and
(4) Whether integration of the instrument is feasible.
(g) In reviewing an investigator’s
management plan, the Project Office
should evaluate the investigator’s approach for efficiently managing the
work, the recognition of essential management functions, and the effective
overall integration of these functions.
Evaluation of the proposals under final
consideration should include, but not
be limited to: workload—present and
future related to capacity and capability; past experience; management
approach and organization; e.g.:
(1) With respect to workload and its
relationship to capacity and capability, it is important to ascertain the
extent to which the investigator is capable of providing facilities and personnel skills necessary to perform the
required effort on a timely basis. This
review should reveal the need for additional facilities or people, and provide
some indication of the Government
support the investigator will require.
(2) A review should be made of the investigator, the investigator’s institution, and any supporting contractor’s
performance on prior investigations.
This should assist in arriving at an assessment of the investigator and the
institution’s ability to perform the effort within the proposed cost and time
constraints.
(3) The proposed investigator’s management arrangements should be reviewed, including make or buy choices,
support of any co-investigator, and
preselected subcontractors or other instrument fabricators to determine
whether such arrangements are justified. The review should determine if
the proposed management arrangements enhance the investigator’s ability to devote more time to the proposed experiment objectives and still
effectively employ the technical and
administrative support required for a
successful investigation. In making
these evaluations, the Project Office
should draw on the installation’s engineering, business, legal, and other staff
resources, as necessary, as well as its
scientific resources. If further informa-

tion is needed from the proposers, it
should be obtained through the proper
contacts.
1872.405 Program office evaluation.
(a) A Program Office responsible for
the project or program at Headquarters
will receive the evaluation of the proposals, and weigh the evaluative data
to determine an optimum payload or
program of investigation. This determination will involve recommendations concerning individual investigations; but, more importantly, should
result in a payload or program which is
judged to optimize total mission return
within schedule, engineering, and budgetary constraints. The recommendations should facilitate sound selection
decisions by the Program AA. Three
sets of recommendations result from
the Program Office evaluation:
(1) Optimum payload or program of
investigations, or options for alternative payloads or programs.
(2) Recommendation for final or tentative selection based on a determination of the degree of uncertainty associated with individual investigations.
A tentative selection may be considered step one of a two-step selection
technique.
(3) Upon consideration of the guidelines contained in 1872.502(a)(3), recommending responsibility for instrument
development.
(b) The Installation Project Office
evaluation is principally concerned
with ensuring that the proposed investigation can be managed, developed, integrated, and executed with an appropriate probability of technical success
within the estimated probable cost.
The Headquarters Program Director,
drawing upon these inputs, should be
mainly concerned with determining a
payload or program from the point of
view of programmatic goals and budgetary constraints. Discipline and cost
trade-offs are considered at this level.
The Headquarters Program Office
should focus on the potential contribution to program objectives that can be
achieved under alternative feasible
payload integration options.
(c) It may be to NASA’s advantage to
consider certain investigations for tentative selection pending resolution of
uncertainties in their development.

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National Aeronautics and Space Administration
Tentative selections should be reconsidered after a period of time for final
selection in a payload or program of investigations. This two-step selection
process should be considered when:
(1) The potential return from the investigation is sufficient, relative to
that of the other investigations under
consideration, and that its further development appears to be warranted before final selection.
(2) The investigation potential is of
such high priority to the program that
the investigation should be developed
for flight if at all possible.
(3) The investigative area is critical
to the program and competitive approaches need to be developed further
to allow selection of the optimum
course.
(d) Based on evaluation of these considerations associated with the investigations requiring further development of hardware, the following information should be provided to the
Steering Committee and the Program
AA responsible for selection:
(1) The expected gain in potential return associated with the eventual incorporation
of
tentatively
recommended investigations in the payload(s) or program.
(2) The expected costs required to develop instrumentation to the point of
‘‘demonstrated capability.’’
(3) The risk involved in added cost,
probability of successfully developing
the required instrument capability,
and the possibility of schedule impact.
(4) Identification of opportunities, if
any, for inclusion of such investigations in later missions.
(e) In those cases where investigations are tentatively selected, an explicit statement should be made of the
process to be followed in determining
the final payload or program of investigations and the proposers so informed. The two-phase selection approach provides the opportunity for additional assurance of development potential and probable cost prior to a
final commitment to the investigation.
(f) As instruments used in investigations become increasingly complex and
costly, the need for greater control of
their development by the responsible
Headquarters Program Office also
grows. Accordingly, as an integral part

1872.405

of the evaluation process, a deliberate
decision should be made regarding the
role of the Principal Investigator with
respect to the provision of the major
hardware associated with that person’s
investigation. The guidelines for the
hardware acquisition determination
are discussed in 1872.502(a)(3).
(g) The range of options for responsibility for the instrumentation consists
of:
(1) Assignment of full responsibility
to the Principal Investigator. The responsibility includes all in-house or
contracted activity to provide the instrumentation for integration.
(2) Retention of developmental responsibility by the Government with
participation by the Principal Investigator in key events defined for the program. In all cases the right of the Principal Investigator to counsel and recommend is paramount. Such involvement of the Principal Investigator may
include:
(i) Provision of instrument specifications.
(ii) Approval of specifications.
(iii) Independent monitorship of the
development and advice to the Government on optimization of the instrumentation for the investigation.
(iv) Participation in design reviews
and other appropriate reviews.
(v) Review and concurrence in
changes resulting from design reviews.
(vi) Participation in configuration
control board actions.
(vii) Advice in definition of test program.
(viii) Review and approval of test
program and changes thereto.
(ix) Participation in conduct of the
test program.
(x) Participation in calibration of instrument.
(xi) Participation in final inspection
and acceptance of the instrument.
(xii) Participation in subsequent test
and evaluation processes incident to
integration and flight preparation.
(xiii) Participation in the development and support of the operations
plan.
(xiv) Analysis and interpretation of
data.
(h) The Principal Investigator should
as a minimum:

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48 CFR Ch. 18 (10–1–02 Edition)

(1) Approve the instrument specification.
(2) Advise the project manager in development and fabrication.
(3) Participate in final calibration.
(4) Develop and support the operations plan.
(5) Analyze and interpret the data.
(i) The Project Installation is responsible for implementing the program or
project and should make recommendations concerning the role for the Principal Investigators. The Program AA
will determine the role, acting upon
the advice of the Headquarters Program Office and the Steering Committee. The Principal Investigator’s
desires will be respected in the negotiation of the person’s role allowing an
appeal to the Program AA and the
right to withdraw from participation.
(j) The Program Office should make a
presentation to the Steering Committee with supporting documentation
on the decisions to be made by the responsible Program AA.
1872.406

Steering committee review.

(a) The most important role of the
Steering Committee is to provide a
substantive review of a potential payload or program of investigations and
to recommend a selection to the Program AA. The Steering Committee applies the collective experience of representatives from the program and discipline communities and offers a forum
for discussing the selection from those
points of view. In addition to this mission-specific evaluation function, the
Steering Committee provides guidance
to subcommittee chairpersons and
serves as a clearinghouse for problems
and complaints regarding the process.
The Steering Committee is responsible
for assuring adherence to required procedures. Lastly, it is the forum where
discipline
objectives
are
weighed
against program objectives and constraints.
(b) The Steering Committee represents the means for exercising three
responsibilities in the process of selecting investigations to:
(1) Review compliance with procedures governing application of the AO
process.

(2) Ensure that adequate documentation has been made of the steps in the
evaluation process.
(3) Review the results of the evaluation by the subcommittee, Project, and
Program Offices and prepare an assessment or endorsement of a recommended payload or program of investigations to the Program AA.
(c) The Purpose in exercising the
first of the responsibilities in paragraph (b) of this section is to ensure equity and consistency in the application
of the process. The Steering Committee is intended to provide the necessary reviews and coordination inherent in conventional acquisition practices.
(d) The second and third responsibilities of the Steering Committee in
paragraph (b) are technical. They require that the Steering Committee review the evaluations by subcommittee,
the Project Office, and the Program Office for completeness and appropriateness before forwarding to the Program
AA. Most important in this review are:
(1) Degree to which results of evaluations and recommendations follow logically from the criteria in the AO.
(2) Consistency with objectives and
policies generally beyond the scope of
Project/Program Offices.
(3) Sufficiency of reasons stated for
tentative recommendations of those investigations requiring further instrument research and development.
(4) Sufficiency of reasons stated for
determining responsibilities for instrument development.
(5) Sufficiency of consideration of reusable space flight hardware and support equipment for the recommended
investigations.
(6)
Sufficiency
of
reasons
for
classifying proposed investigations in
their respective categories.
(7) Fair treatment of all proposals.
(e) The Steering Committee makes
recommendations to the selection official on the payload or program of investigations and notes caveats or provisions important for consideration of
the selection official.
1872.407 Principles to apply.
(a) 1872.406 contains a description of
the evaluation function appropriate for
a major payload or very significant

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National Aeronautics and Space Administration
program of investigation. The levels of
review, evaluation, and refinement described should be applied in those selections where warranted but could be
varied for less significant selection situations. It is essential to consider the
principles of the several evaluative
steps, but it may not be essential to
consider the principles of the several
evaluative steps, but it may not be essential to maintain strict adherence to
the sequence and structure of the evaluation system described. The selection
official is responsible for determining
the evaluation process most appropriate for the selection situation using
this subpart 1872.4 as a guide.

1872.502

(b) Significant deviations from the
provisions of this part 1872 must be
fully documented and be approved by
the Program AA after concurrence by
the Office of General Counsel and Office of Acquisition.

Subpart 1872.5—The Selection
Process
1872.501

Evaluation stage

Principal emphasis

Contractor (when authorized) .............

Summary evaluation (strengths and
weaknesses).
Science and technological relevance,
value, and feasibility.
Engineering/cost/integration/management
assessment.
Consistency with Announcement and program objectives, and cost and schedule constraints.
Logic of proposed selections and compliance with proper procedures.

Subcommittee individual ....................
Project Office ......................................
Program Office ...................................

Steering Committee ............................

1872.502

Decisions to be made.

(a) The selection decisions by the
Program AA constitute management
judgments balancing individual and aggregate scientific or technological
merit, the contribution of the recommended investigations to the AO’s
objectives, and their consonance with
budget constraints to make the following decisions:
(1) Determination of the adequacy of
scientific/technical analysis supporting
the recommended selections. This supporting rationale should involve considerations including:
(i) Assurance that the expected return contributes substantially to program objectives and is likely to be realized.
(ii) Assurance that the evaluation
criteria were applied consistently to
all proposed investigations.
(iii) Assurance that the set of recommended investigations constitutes
the optimum program or payload considering potential value and constraints.

General.

The Program AA is responsible for
selecting investigations for contract
negotiation. This decision culminates
the evaluations and processes that can
be summarized as follows:
Results
Report to Subcommittee.
Categorization of proposals.
Reports to Subcommittee and Program Office.
Recommendations to Steering Committee of
payload or program of investigations.
Recommendations to Program Associate
Administrator.

(iv) Assurance that only one investigator is assigned as the Principal Investigator to each investigation and
that the Principal Investigator will assume the associated responsibilities
and be the single point of contact and
leader of any other investigators selected for the same investigation.
(2) Determination as to whether
available returned space hardware or
support equipment, with or without
modification, would be adequate to
meet or support investigation objectives.
(3) Determination as to whether the
proposed instrument fabricator qualifies and should be accepted as a sole
source or whether the requirement
should be competitively procured. The
following guidelines apply:
(i) The hardware required should be
subjected to competitive solicitation
where it is clear that the capability is
not sufficiently unique to justify sole
source acquisition.
(ii) The hardware requirement should
be purchased from the fabricator proposed by the investigator, which may
be the investigator’s own institution,

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1872.503

48 CFR Ch. 18 (10–1–02 Edition)

(A) When the fabricator’s proposal
contains technical data that are not
available from another source, and it is
not feasible or practicable to define the
fabrication requirement in such a way
as to avoid the necessity of using the
technical data contained in the proposal;
(B) When the fabricator offers unique
capabilities that are not available from
another source;
(C) When the selection official determines that the proposed hardware contributes so significantly to the value of
the investigator’s proposal as to be an
integral part of it.
(iii) If a producer other than the one
proposed by the investigator offers
unique capabilities to produce the
hardware requirement, NASA may buy
the hardware from the qualified fabricator.
(iv) If a NASA employee submits a
proposal as a principal investigator,
any requirement for hardware necessary to perform the investigation
must either be competed by the installation acquisition office or a justification must be written, synopsized, and
approved in accordance with the requirements of FAR and the NASA FAR
Supplement.
(4) Determination of the desirability
for tentative selection of investigations. This determination involves considerations including:
(i) Assessment of the state of development of the investigative hardware,
the cost and schedule for development
in relation to the gain in potential benefits at the time of final selection.
(ii) Assurance that there is adequate
definition of investigation hardware to
allow parallel design of other project
hardware.
(iii) Assurance that appropriate management procedures are contained in
the project plan for reevaluation and
final selection (or rejection) on an appropriate time scale.
(5) Determination of the acceptability of the proposer’s management
plan, including the proposed hardware
development plan, and the necessity, if
any, of negotiating modifications to
that plan.
(b) In the process of making the determinations described in paragraph (a)
(1) of this section, the Program AA

may request additional information or
evaluations. In most instances, this information can be provided by the Program Office responsible for the mission, project, or program. However, the
Program AA may reconvene the subcommittee or poll the members individually or provide for additional analysis or require additional data from
evaluators or proposers as considered
necessary to facilitate the Program
AA’s decision.
1872.503

The selection statement.

Upon completion of deliberations,
the responsible Program AA shall issue
a selection statement. Ordinarily this
statement will, upon request, be releasable to the public. As a minimum, the
selection statement should include:
(a) The general and specific evaluation criteria and relative importance
used for the selection.
(b) The categorizations provided by
the subcommittee and the rationale for
accepting or not accepting each Category I proposal and a succinct statement concerning the nonacceptance of
all other proposals.
(c) A concise description of each investigation accepted including an indication as to whether the selection is a
partial acceptance of a proposal and/or
a combination with other investigators.
(d) The role of the Principal Investigator with regard to hardware essential to the investigation and whether
the Principal Investigator will be responsible for hardware acquisition and
the basis therefor.
(e) An indication of the plan and acquisition using the regular acquisition
processes, if the Principal Investigator
is not to acquire the hardware.
(f) A statement indicating whether
the selection is final or tentative, recognizing the need for better definition
of the investigation and its cost.
(g) A statement indicating use of
Government-owned space flight hardware and/or support equipment.
1872.504

Notification of proposers.

(a) It is essential that investigators
whose proposals have no reasonable
chance for selection be so apprised as
soon as practicable. The responsible

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National Aeronautics and Space Administration
Program Office will, upon such determination, notify investigators of that
fact with the major reason(s) why the
proposals were so considered. The notification letter should also inform such
investigators that they may obtain a
detailed oral debriefing provided they
request it in writing.
(b) Letters of notification will be
sent to those Principal Investigators
selected to participate. This letter
should not commit the agency to more
than negotiations for the selected investigation, but it should indicate the
decision made and contain:
(1) A concise description of the Principal Investigator’s investigation as selected, noting substantive changes, if
any, from the investigation originally
proposed by the Principal Investigator.
(2) The nature of the selection, i.e.,
whether it should be considered final or
tentative requiring additional hardware or cost definition.
(3) A description of the role of the
Principal Investigator including the responsibility for the provision of instruments for flight experiments.
(3) Identification of the principal
technical and management points to be
treated in subsequent negotiations.
(5) Any rights to be granted on use of
data, publishing of data, and duration
of use of the data.
(6) Where applicable, indication that
a foreign selectee’s participation in the
program will be arranged between the
Office of External Relations, and the
foreign government agency which endorsed the proposal.
(c) In conjunction with the notification of successful foreign proposers, the
Program Office shall forward a letter
to the responsible Office of External
Relations, addressing the following:
(1) The scientific technological objective of the effort.
(2) The period of time for the effort.
(3) The responsibilities of NASA and
of the sponsoring governmental agency; these may include:
(i) Provision and disposition of hardware and software.
(ii) Responsibilities for reporting, reduction and dissemination of data.
(iii) Responsibilities for transportation of hardware.
(4) Any additional information pertinent to the conduct of the experiment.

1872.505

(d) Using the information provided
above, the Office of External Relations
will negotiate an agreement with the
sponsoring foreign agency.
(e) Notices shall also be sent to those
proposers not notified pursuant to
paragraphs (a) through (d) of this section, and, as applicable, a copy to the
sponsoring foreign government agency.
It is important that these remaining
proposers be informed at the same time
as those selected. Other agency notifications and press release procedures
will apply, as appropriate.
[62 FR 4477, Jan. 30, 1997, as amended at 48562,
Sept. 7, 1999]

1872.505

Debriefing.

It is the policy to debrief, if requested, unsuccessful proposers of investigations in accordance with FAR
15.5. The following shall be considered
in
arranging
and
conducting
debriefings:
(a) Debriefing shall be done by an official designated by the responsible
Program AA. Any other personnel receiving requests for information concerning the rejection of a proposal
shall refer to the designated official.
(b)
Debriefing
of
unsuccessful
offerors shall be made at the earliest
possible time; debriefing will generally
be scheduled subsequent to selection
but prior to award of contracts to the
successful proposers.
(c) Material discussed in debriefing
shall be factual and consonant with the
documented findings of several stages
of the evaluation process and the selection statement.
(d) The debriefing official shall advise of weak or deficient areas in the
proposal, indicate whether those weaknesses were factors in the selection,
and advise of the major considerations
in selecting the competing successful
proposer where appropriate.
(e) The debriefing official shall not
discuss other unsuccessful proposals,
rankings, votes of members, or attempt
to make a point-by-point comparison
with successful proposals.
(f) A memorandum of record of the
debriefing shall be provided the Chairperson of the Steering Committee.
[62 FR 4477, Jan. 30, 1997, as amended at 63
FR 9967, Feb. 27, 1998]

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1872.601

48 CFR Ch. 18 (10–1–02 Edition)

Subpart 1872.6—Payload
Formulation
1872.601

Payroll formulation.

(a) Payload elements for Space
Transportation System (STS) missions
can come from many sources. These include those selected through AOs,
those generated by in-house research,
unsolicited proposals and those derived
from agreements between NASA and
external entities. However, it is anticipated that the primary source of NASA
payload elements will be the AO process. Generally, proposals for payload
elements submitted outside the AO
process will not be selected if they
would have been responsive to an AO
objective.
(b) Payload elements for STS flights
fall into two major categories. ‘‘NASA
or NASA-related’’ payload elements
are those which are developed by a
NASA Program Office or by another
party with which NASA has a shared
interest. ‘‘Non-NASA’’ payload elements are those which require only
STS operation services from NASA and
interface with NASA through the Office of Space Flight.
(c) In general, a Program Office will
be designated responsibility for formulating the ‘‘NASA or NASA-related’’
portion of an STS payload. The Office
of Space Flight will be responsible for
formulating the ‘‘non-NASA’’ portion
of an STS payload. Flights may, of
course, consist wholly of payload elements of either type. Resource allocation for mixed missions will be determined by the Program Office and the
Office of Space Flight.

Subpart 1872.7—Acquisition and
Other Considerations
1872.701

Early involvement essential.

(a) The distinctive feature of the AO
process is that it is both a program
planning system and an acquisition
system in one procedure. The choice of
what aeronautical and space phenomena to investigate is program planning. Acquisition is involved with the
purchase of property and services to
carry out the selected investigations.
(b) Because of both the programmatic
and multi-functional aspects of the AO

process, early involvement of external
program office elements is essential.
Success of the process requires that it
proceed in a manner that meets program goals and complies with statutory requirements and acquisition policy.
(c) The planning, preparation and selection schedule for the investigation
should commence early enough to meet
statutory and regulatory requirements.
Chief of these are the requirements for
soliciting maximum feasible competition and for conducting discussions
with offerors within the competitive
range by the Project Office and/or any
other evaluation group or office authorized by the selection official.
1872.702 Negotiation, discussions, and
contract award.
(a) The AO shall be synopsized in the
Commerce Business Daily. Responses
to the synopsis must be added to the
AO mailing list. Every effort should be
made to publish opportunities far
enough in advance to encourage a
broad response. (In no case less than 45
days before the date set for receipt of
proposals).
(b) Significant items for consideration after receipt of proposals:
(1) Late proposals—The policy on late
proposals contained in 1815.208 is applicable. Potential investigators should
be informed of this policy. In the AO
context, the selection official or designee will determine whether a late
proposal will be considered.
(2) Competitive considerations. (i)
The proposals submitted in response to
the AOs are not necessarily fully comparable. However, all proposals within
the scope of an opportunity must be
evaluated in accordance with the criteria in the AO.
(ii) Cost must be considered in the
evaluation if costs are involved in the
investigation. General cost information should be given to the subcommittee by the Installation Project
Office for use in determining the categories into which the subcommittee
places proposals.
(iii) Further information should be
obtained, as necessary, by the Installation Project Office and/or any other

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National Aeronautics and Space Administration
evaluation group authorized by the selection official and from the investigators whose proposals are being considered. This is similar to the acquisition
procedure for conducting written and
oral discussions. A major consideration
during discussions is to avoid unfairness and unequal treatment. Good
judgment is required by in the extent
and content of the discussions. There
should be no reluctance in obtaining
the advice and guidance of management and staff offices during the discussion phase. A summary should be
prepared of the primary points covered
in the written and oral discussions and
show the effect of the discussions on
the evaluation of proposals. This summary should also contain general information about the questions submitted
to the investigators, the amount of
time spent in oral discussion, and revisions in proposals, if any, resulting
from the discussions.
(iv) During the conduct of discussions, all proposers being considered
shall be offered an equitable opportunity to submit cost, technical, or
other revisions in their proposals as
may result from the discussions. All
proposers shall be informed that any
revisions to their proposals must be
submitted by a common cut-off date in
order to be considered. The record
should note compliance of the investigators with that cut-off date.
(c) Significant items for consideration before award:
(1) Issuance of a Request for Proposal
(RFP)—A formal RFP should not be
issued to obtain additional information
on proposals accepted under the AO
process. Additional technical, cost, or
other data received should be considered as a supplement to the original
proposal.
(2) Selection of Investigator/Contractor—The selection decision of the
Program AA approves the selected investigators and their institutions as
the only satisfactory sources for the
investigations. The selection of the investigator does not constitute the selection of that person’s proposed supporting hardware fabricator unless the
selection official specifically incor-

1872.705

porates the fabricator in the selection
decision.
[62 FR 4477, Jan. 30, 1997, as amended at 63
FR 9967, Feb. 27, 1998]

1872.703 Application of the Federal
Acquisition Regulation (FAR) and
the NASA FAR Supplement.
The AO process supplants normal acquisition procedures only to the extent
necessary to meet the distinctive features of the process. This process is not
intended to conflict with any established statutory requirements.
1872.704 Other
administrative
functional requirements.

After selection, all other applicable
administrative and functional requirements will be complied with or incorporated in any resultant contract.
1872.705 Format of Announcement of
Opportunity (AO).
Use the following format instructions
when drafting AOs:
OMB APPROVAL NUMBER 2700–0085
NATIONAL AERONAUTICS AND SPACE
ADMINISTRATION
Washington, DC 20546
Announcement of Opportunity
AO No. llllllll (Issuance Date)
(Descriptive Heading)
I. DESCRIPTION OF THE OPPORTUNITY
This section should set forth the
basic purpose of the AO and describe
the opportunity in terms of NASA’s desire to obtain proposals which will
meet the stated scientific, applications
and/or technological objectives. These
objectives may be directed to the generation of proposals for investigations
and/or they may pertain to the acquisition of dissimilar ideas leading to selection of investigators, guest observers, guest investigators, or theorists.
In those instances where proposals for
investigations are sought, this section
should describe the requirement, if
any, for selected investigators to serve
on advisory or working groups. In
those instances where the project or
program has not yet been approved, a

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1872.705

48 CFR Ch. 18 (10–1–02 Edition)

qualifying statement should be included to indicate that this AO does
not constitute an obligation for the
Government to carry the effort to completion.
II. NASA’S SAFETY PRIORITY
Safety is the freedom from those conditions that can cause death, injury,
occupational illness, damage to or loss
of equipment or property, or damage to
the environment. NASA’s safety priority is to protect:
(1) The public,
(2) Astronauts and pilots,
(3) The NASA workforce (including
NASA employees working under NASA
instruments), and
(4) High-value equipment and property.
III. AO OBJECTIVES
This section will give a succinct
statement of the specific scientific, applications, and/or technological objective(s) for the opportunity(s) for which
proposals are sought.
IV. BACKGROUND
This section should provide an explanation of the context of the opportunity, i.e., information which will
help the reader understand the relevance of the opportunity.
V. PROPOSAL OPPORTUNITY PERIOD
This section should provide the proposal opportunity period(s). The following methods may be used individually or in conjunction for establishing
the proposal opportunity period(s):
(a) The AO may be issued establishing a single date by which proposals may be received. However, the
AO could provide that the agency may
amend the AO to provide for subsequent dates for submission of proposals, if additional investigations are
desired.
(b) The AO may be issued to provide
for an initial submission date with the
AO to remain open for submission of
additional proposals up to a final cutoff
date. This final date should be related
to the availability of resources necessary to evaluate the continuous flow
of proposals and the time remaining

prior to the flight opportunities contemplated by the AO.
(c) The AO may be issued establishing a number of dates by which proposals may be received. Normally no
more than three proposal submission
dates should be established. The submittal dates may be spread over the
number of months most compatible
with the possible flight opportunities
and the availability of resources necessary to evaluate and fund the proposal. If desired, this section should
further inform the reader that if a proposal receives a Category I, II, or III
rating but is not selected for immediate support, the proposal may, if desired by the proposer, be held by NASA
for later consideration within the
ground rules set forth in paragraphs 1
and 2. The section should inform the
reader that if the person wishes the
proposal to be so treated, it should be
indicated in the proposal. This section
should further indicate that offerors
whose proposals are to be considered at
a later time will be given the opportunity to revalidate their proposals
with their institution and update cost
data.
VI. REQUIREMENTS AND CONSTRAINTS
(a) This section will include technical, programmatic, cost, and schedule requirements or constraints, as applicable, and will specify performance
limits such as lifetime, flight environment, safety, reliability, and quality
assurance provisions for flight-worthiness. It will specify the requirements
and constraints related to the flight
crew and the ground support. It will
also include requirements for data
analysis, estimated schedule of data
shipment to user for observer, need for
preliminary or raw data analysis and
interim reports. It will specify the
planned period (time) for data analysis
to be used for budgeting. It will provide
any additional information necessary
for a meaningful proposal.
(b) When NASA determines that instrumentation, ground support equipment, or NASA supporting effort will
be required or may be expected to be
required by the contemplated investigations, the AO should indicate to
the potential investigators that they

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National Aeronautics and Space Administration
must submit specific information regarding this requirement to allow an
in-depth evaluation of the technical aspects, cost, management, and other
factors by the Installation Project Office.
VII. PROPOSAL SUBMISSION
INFORMATION
(a) Preproposal Activities—In this
section, the AO will indicate requirements and activities such as the following:
(1) Submittal of ‘‘Notice of Intent’’ to
propose (if desired), date for submission, and any additional required data
to be submitted. Indicate whether
there are information packages which
will only be sent to those who submit
‘‘Notice of Intent.’’
(2) Attendance at the preproposal
conference
(if
held).
Information
should be provided as to time, place,
whether attendance will be restricted
in number from each institution, and
whether prior notice of intention to attend is required. If desired, a request
may be included that questions be submitted in writing several days before
the conference in order to prepare replies.
(3) The name and address of the scientific or technical contact for questions or inquiries.
(4) Any other preproposal data considered necessary.
(b) Format of Proposals—This section should provide the investigator
with the information necessary to enable an effective evaluation of the proposal. The information is as follows:
(1) Proposal—The AO should indicate
how the proposal should be submitted
to facilitate evaluation. The proposal
should be submitted in at least two
sections; (i) Investigation and Technical Section; and (ii) Management and
Cost Section.
(2) Signatory—The proposal must be
signed by an institutional official authorized to ensure institutional support, sponsorship of the investigation,
management, and financial aspects of
the proposal.
(3) Quantity—The number of copies
of the proposal should be specified. One
copy should be clear black and white,
and on white paper of quality suitable
for reproduction.

1872.705

(4)
Submittal
Address—Proposals
from domestic sources should be
mailed to arrive not later than the
time indicated for receipt of proposals
to:
NATIONAL AERONAUTICS AND SPACE
ADMINISTRATION, OFFICE OF (PROGRAM)
Code lllllllllllllllllllll
AO No. lllllllllllllllllll
Washington, DC 20546

(5) Format—To aid in proposal evaluation, and to facilitate comparative
analysis, a uniform proposal format
will be required for each AO. The number of pages, page size, and restriction
on photo reduction, etc., may be included. The format contained in Appendix B can be used as a guide. Proposers
may be requested to respond to all of
the items or the AO may indicate that
only selected items need be addressed.
Using the Appendix format as a guide,
specific guidelines may be prepared for
the AO or an appropriate form developed.
(c) Additional Information—This section may be used to request or furnish
data necessary to obtain clear proposals that should not require further
discussions with the proposer by the
evaluators. Other pertinent data could
also be included, such as significant
milestones.
(d) Foreign Proposals—The procedures for submission of proposals from
outside the U.S. are contained in Appendix B, ‘‘Guidelines for Proposal
Preparation.’’ This section will describe any additional requirements, for
example, if information copies of proposals are required to be furnished by
the proposer to other organizations at
the same time the proposal is submitted.
(e) Cost Proposals (U.S. Investigators
Only)—This section defines any special
requirements regarding cost proposals
of domestic investigators. Reference
than should be made to the cost proposal certifications indicated in Appendix B, ‘‘Guidelines for Proposal Preparation.’’
VIII. PROPOSAL EVALUATION,
SELECTION, AND IMPLEMENTATION
(a) Evaluation and Selection Procedure.

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1872.705–1

48 CFR Ch. 18 (10–1–02 Edition)

(1) This section should notify the proposers of the evaluation process.
(2) For example, a statement similar
to the following should be included:
‘‘Proposals received in response to
this AO will be reviewed by a subcommittee
appointed
by
the
(appropriate Program AA). The purpose
of the review is to determine the scientific/technical merit of the proposals
in the context of this AO and so categorize the proposals. Those proposals
with are considered to have the greatest scientific/technical merit are further reviewed for engineering, integration, management, and cost aspects by
the Project Office at the installation
responsible for the project. On the
basis of these reviews, and the reviews
of the responsible Program Office and
the
Steering
Committee,
the
(appropriate Program Associate Administrator) will appoint/select the investigators/investigations.’’
(b) Evaluation Criteria.
(1) This section should indicate that
the selection proposals which best
meet the specific scientific, applications, and/or technological objectives,
stated in the AO, is the aim of the solicitation. This section should list the
criteria to be used in the evaluation of
proposals and indicate their relative
importance. See NASA FAR Supplement 1872.402 for a listing of criteria
generally appropriate.
(2) This section will also inform the
proposers that cost and management
factors, e.g., proposed small business
participation in instrumentation fabrication or investigation support, will
be separately considered.
IX. SCHEDULE
This section should include the following, as applicable:
(a) Preproposal conference date.
(b) Notice of Intent submittal date.
(c) Proposal submittal date(s).
(d) Target date for announcement of
selections.
X. APPENDICES
(a) General Instructions and Provisions (must be attached to each AO).
(b) Other Pertinent Data, e.g., Spacelab Accommodations Data.
/s/ Associate Administrator

for (Program)
[62 FR 4477, Jan. 30, 1997, as amended at 65
FR 82298, Dec. 28, 2000; 67 FR 61520, Oct. 1,
2002]

1872.705–1 Appendix A: General Instructions and Provisions.
Include the following in
nouncements of Opportunity:

all

I. INSTRUMENTATION AND/OR GROUND
EQUIPMENT
By submitting a proposal, the investigator and institution agree that
NASA has the option to accept all or
part of the offeror’s plan to provide the
instrumentation or ground support
equipment required for the investigation or NASA may furnish or obtain
such instrumentation or equipment
from any other source as determined
by the selecting official. In addition,
NASA reserves the right to require use,
by the selected investigator, of Government instrumentation or property that
becomes available, with or without
modification, that will meet the investigative objectives.
II. TENTATIVE SELECTIONS, PHASED DEVELOPMENT, PARTIAL SELECTIONS, AND
PARTICIPATION WITH OTHERS
By submitting a proposal, the investigator and the organization agree that
NASA has the option to make a tentative selection pending a successful
feasibility or definition effort. NASA
has the option to contract in phases for
a proposed experiment, and to discontinue the investigative effort at the
completion of any phase. The investigator should also understand that
NASA may desire to select only a portion of the proposed investigation and/
or that NASA may desire the individual’s participation with other investigators in a joint investigation, in
which case the investigator will be
given the opportunity to accept or decline such partial acceptance or participation with other investigators
prior to a selection. Where participation with other investigators as a team
is agreed to, one of the team members
will normally be designated as its team
leader or contact point.

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National Aeronautics and Space Administration
III. SELECTION WITHOUT DISCUSSION
The Government reserves the right
to reject any or all proposals received
in response to this AO when such action shall be considered in the best interest of the Government. Notice is
also given of the possibility that any
selection may be made without discussion (other than discussions conducted
for the purpose of minor clarification).
It is therefore emphasized that all proposals should be submitted initially on
the most favorable terms that the offeror can submit.
IV. FOREIGN PROSPOSALS
See Appendix B, Management Plan
and Cost Plan, paragraph (a)(3).

1872.705–1

or quotation the Government shall
have the right to use and disclose this
information (data) to the extent provided in the contract. This restriction
does not limit the Government’s right
to use or disclose this information
(data) if obtained from another source
without restriction.
VI. STATUS OF COST PROPOSALS (U.S.
PROPOSALS ONLY)
The investigator’s institution agrees
that the cost proposal is for proposal
evaluation and selection purposes, and
that following selection and during negotiations leading to a definitive contract, the institution may be required
to resubmit cost information in accordance with FAR 15.403–5.

V. TREATMENT OF PROPOSAL DATA
It is NASA policy to use information
contained in proposals and quotations
for evaluation purposes only. While
this policy does not require that the
proposal or quotation bear a restrictive
notice, offerors or quoters should place
the following notice on the title page
of the proposal or quotation and specify the information, subject to the notice by inserting appropriate identification, such as page numbers, in the
notice. Information (data) contained in
proposals and quotations will be protected to the extent permitted by law,
but NASA assumes no liability for use
and disclosure of information not made
subject to the notice. To prevent inadvertent disclosure, proposal data shall
not be included in submissions (e.g.
final reports) that are routinely released to the public.
RESTRICTION ON USE AND DISCLOSURE OF
PROPOSAL AND QUOTATION INFORMATION (DATA)
The information (data) contained in
[insert page numbers or other identification] of this proposal or quotation
constitutes a trade secret and/or information that is commercial or financial
and confidential or privileged. It is furnished to the Government in confidence with the understanding that it
will not, without permission of the offeror, be used or disclosed for other
than evaluation purposes; provided,
however, that in the event a contract
is awarded on the basis of this proposal

VII. LATE PROPOSALS
Proposals or proposal modifications
received after the latest date specified
for receipt may be considered if a significant reduction in cost to the Government is probable or if there are significant technical advantages, as compared with proposals previously received.
VIII.

SOURCE OF SPACE TRANSPORTATION SYSTEM INVESTIGATIONS

Investigators are advised that candidate investigations for Space Transportation System (STS) missions can
come from many sources.
IX. DISCLOSURE OF PROPOSALS OUTSIDE
GOVERNMENT
NASA may find it necessary to obtain proposal evaluation assistance
outside the Government. Where NASA
determines it is necessary to disclose a
proposal outside the Government for
evaluation purposes, arrangements will
be made with the evaluator for appropriate handling of the proposal information. Therefore, by submitting a
proposal the investigator and institution agree that NASA may have the
proposal evaluated outside the Government. If the investigator or institution
desire to preclude NASA from using an
outside evaluation, the investigator or
institution should so indicate on the
cover. However, notice is given that if
NASA is precluded from using outside

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1872.705–1

48 CFR Ch. 18 (10–1–02 Edition)

evaluation, it may be unable to consider the proposal.
X. EQUAL OPPORTUNITY (U.S.
PROPOSALS ONLY)
By submitting a proposal, the investigator and institution agree to accept
the following clause in any resulting
contract:
EQUAL OPPORTUNITY
During the performance of this contract, the Contractor agrees as follows:
(a) The Contractor will not discriminate against any employee or applicant
for employment because of race, color,
religion, sex, or national origin.
(b) The Contractor will take affirmative action to ensure that applicants
are employed, and that employees are
treated during employment without regard to their race, color, religion, sex,
or national origin. This shall include,
but not be limited to, (1) employment,
(2) upgrading, (3) demotion, (4) transfer, (5) recruitment or recruitment advertising, (6) layoff or termination, (7)
rates of pay or other forms of compensation, and (8) selection for training, including apprenticeship.
(c) The Contractor shall post in conspicuous places available to employees
and applicants for employment the notices to be provided by the Contracting
Officer that explain this clause.
(d) The Contractor shall, in all solicitations or advertisements for employees placed by or on behalf of the Contractor, state that all qualified applicants will receive consideration for employment without regard to race, color,
religion, sex, or national origin.
(e) The Contractor shall send to each
labor union or representative of workers with which it has a collective bargaining agreement or other contract or
understanding the notice to be provided by the Contracting Officer, advising the labor union or workers’ representative of the Contractor’s commitments under this clause, and post
copies of the notice in conspicuous
places available to employees and applicants for employment.
(f) The Contractor shall comply with
Executive Order 11246, as amended, and
the rules, regulations, and orders of the
Secretary of Labor.

(g) The Contractor shall furnish to
the contracting agency all information
required by Executive Order 11246, as
amended, and by the rules, regulations,
and orders of the Secretary of Labor.
Standard Form 100 (EEO–1), or any successor form, is the prescribed form to
be filed within 30 days following the
award, unless filed within 12 months
preceding the date of award.
(h) The Contractor shall permit access to its books, records, and accounts
by the contracting agency or the Office
of Federal Contract Compliance Programs (OFCCP) for the purposes of investigation to ascertain the Contractor’s compliance with the applicable
rules, regulations, and orders.
(i) If the OFCCP determines that the
Contractor is not in compliance with
this clause or any rule, regulation, or
order of the Secretary of Labor, the
contract may be canceled, terminated,
or suspended in whole or in part, and
the Contractor may be declared ineligible for further Government contracts, under the procedures authorized
in Executive Order 11246, as amended.
In addition, sanctions may be imposed
and remedies invoked against the Contractor as provided in Executive Order
11246, as amended, the rules, regulations, and orders of the Secretary of
Labor, or as otherwise provided by law.
(j) The Contractor shall include the
terms and conditions of subparagraph 1
through 9 of this clause in every subcontract or purchase order that is not
exempted by the rules, regulations, or
orders of the Secretary of Labor issued
under Executive Order 11246, as amended, so that these terms and conditions
will be binding upon each subcontractor or vendor.
(k) The Contractor shall take such
action with respect to any subcontract
or purchase order as the contracting
agency may direct as a means of enforcing these terms and conditions, including sanctions for non-compliance;
provided, that if the Contractor becomes involved in, or is threatened
with, litigation with a subcontractor
or vendor as a result of direction, the
Contractor may request the United
States to enter into the litigation to
protect the interests of the United
States.

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National Aeronautics and Space Administration

1872.705–2

XI. PATENT RIGHTS

INVESTIGATION AND TECHNICAL PLAN

(a) For any contract resulting from
this solicitation awarded to other than
a small business firm or nonprofit organization, the clause at 1852.227–70,
‘‘New Technology,’’ shall apply. Such
contractor may, in advance of contract, request waiver of rights as set
forth in the provision at 1852.227–71,
‘‘Request for Waiver of Rights to Inventions.’’
(b) For any contract resulting from
this solicitation awarded to a small
business firm or nonprofit organization, the clause at FAR 52.227–11,
‘‘Patent Rights—Retention by the Contractor (Short Form)’’ (as modified by
1852.227–11), shall apply.

(a) Investigation and Technical Plan

[62 FR 4477, Jan. 30, 1997, as amended at 63
FR 9967, Feb. 27, 1998; 64 FR 48562, Sept. 7,
1999]

1872.705–2 Appendix B: Guidelines for
Proposal Preparation.
The following guidelines apply to the
preparation of proposals in response to
an AO. The material is a guide for the
proposer and not intended to be encompassing or directly applicable to the
various types of proposals which can be
submitted. The proposer should provide
information relative to those items applicable or as required by the AO.
I. COVER LETTER
A letter or cover page should be forwarded with the proposal signed by the
investigator and an official by title of
the investigator’s organization who is
authorized to commit the organization
responsible for the proposal.
II. TABLE OF CONTENTS
The proposal should contain a table
of contents.
III. IDENTIFYING INFORMATION
The proposal should contain a short
descriptive title for the investigation,
the names of all investigators, the
name of the organization or institution
and the full name, address, and telephone number of the Principal Investigator.

The investigation and technical plan
generally will contain the following:
(1) Summary. A concise statement
about the investigation, its conduct,
and the anticipated results.
(2) Objective and Significant Aspects.
A brief definition of the objectives,
their value, and their relationships to
past, current, and future effort. The
history and basis for the proposal and a
demonstration of the need for such an
investigation. A statement of present
development in the discipline field.
(3) Investigation Approach.
(i) Fully describe the concept of the
investigation.
(ii) Detail the method and procedure
for carrying out the investigation.
(b) Instrumentation
This section should describe all information necessary to plan for experiment development, integration, ground
operations, and flight operations. This
section must be complete in itself
without need to request additional
data. Failure to furnish complete data
may preclude evaluation of the proposal.
(1) Instrument Description—This section should fully describe the instrument and indicate items which are proposed to be developed as well as any existing instrumentation. Performance
characteristics should be related to the
experiment objectives as stated in the
proposal.
(2) Instrument Integration—This section should describe all parameters of
the instrument pertinent to the accommodation of the instrument in the
spacecraft, Spacelab, Shuttle Orbiter,
Space Station, etc. These include, but
are not limited to, volumetric envelope; weight; power requirements; thermal requirements; telemetry requirement; sensitivity to or generation of
contamination (e.g., EMI gaseous effluent); data processing requirements.
(3) Ground Operations—This section
should identify requirements for prelaunch or post-launch ground operations support.
(4) Flight Operations—This section
should identify any requirements for
flight operations support including

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1872.705–2

48 CFR Ch. 18 (10–1–02 Edition)

mission planning. Operational constraints, viewing requirements, and
pointing requirements should also be
identified. Details of communications
needs, tracking needs, and special techniques, such as extravehicular activity
or restrictions in the use of control
thrusters at stated times should be delineated. Special communications facilities that are needed must be described. Any special orbital requirements, such as time of month, of day,
phase of moon, and lighting conditions
are to be given in detail. Describe realtime ground support requirements and
indicate any special equipment or
skills required of ground personnel.
(c) Data Reduction and Analysis
A discussion of the data reduction
and analysis plan including the method
and format. A section of the plan
should include a schedule for the submission of reduced data to the receiving point. In the case of Space Science
programs, the National Space Science
Data Center, Greenbelt, MD, will be
the repository for such data and the
Department of Interior, Sioux Falls,
SD, for earth observations data.
(d) Orbiter Crew and/or Payload
Specialist Training Requirement
A description of the tasks required of
each crew member (Commander, Pilot,
Mission Specialist) or payload specialist should be provided, including
the task duration and equipment involved. Indicate special training necessary to provide the crew members or
payload specialist(s) with the capability for performing the aforementioned tasks.
MANAGEMENT PLAN AND COST PLAN
(a) Management Plan
The management plan should summarize the management approach and
the facilities and equipment required.
Additional guidelines applicable to
non-U.S. proposers are contained herein:
(1) Management
(i) The management plan sets forth
the approach for managing the work,
the recognition of essential manage-

ment functions, and the overall integration of these functions.
(ii) The management plan gives insight into the organization proposed
for the work, including the internal operations and lines of authority with
delegations, together with internal
interfaces and relationships with the
NASA major subcontractors and associated investigators. Likewise, the
management plan usually reflects various schedules necessary for the logical
and timely pursuit of the work accompanied by a description of the investigator’s work plan and the responsibilities of the co-investigators.
(iii) The plan should describe the proposed method of instrument acquisition. It should include the following, as
applicable.
(A) Rationale for the investigator to
obtain the instrument through or by
the investigator’s institution.
(B) Method and basis for the selection of the instrument fabricator.
(C) Unique capabilities of the instrument fabricator that are not available
from any other source.
(D) Characteristics of the proposed
fabricator’s instrument that make it
an inseparable part of the investigation.
(E) Availability of personnel to administer the instrument contract and
technically monitor the fabrication.
(F) Status of development of the instrument.
(G) Method by which the investigator
proposes to:
(a) Prepare instrument specifications.
(b) Review development progress.
(c) Review design and fabrication
changes.
(d) Participate in testing program.
(e) Participate in final checkout and
calibration.
(f) Provide for integration of instrument.
(g) Support the flight operations.
(h) Coordinate with co-investigators,
other related investigations, and the
payload integrator.
(i) Assure safety, reliability, and
quality.
(j) Provide required support for Payload Specialist(s), if applicable.

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National Aeronautics and Space Administration
(H) Planned participation by small
and/or minority business in any subcontracting for instrument fabrication
or investigative support functions.
(2) Facilities and Equipment
All
major
facilities,
laboratory
equipment, and ground-support equipment (GSE) (including those of the investigator’s proposed contractors and
those of NASA and other U.S. Government agencies) essential to the experiment in terms of its system and subsystems are to be indicated, distinguishing insofar as possible between
those already in existence and those
that will be developed in order to execute the investigation. The outline of
new facilities and equipment should
also indicate the lead time involved
and the planned schedule for construction, modification, and/or acquisition
of the facilities.
(3) Additional Guidelines Applicable to
Non-U.S. Proposers Only
The following guidelines are established for foreign responses to NASA’s
AO. Unless otherwise indicated in a
specific announcement, these guidelines indicate the appropriate measures
to be taken by foreign proposers, prospective foreign sponsoring agencies,
and NASA leading to the selection of a
proposal and execution of appropriate
arrangements. They include the following:
(i) Where a ‘‘Notice of Intent’’ to propose is requested, prospective foreign
proposers should write directly to the
NASA official designated in the AO.
(ii) Unless otherwise indicated in the
AO, proposals will be submitted in accordance with this Appendix. Proposals
should be typewritten and written in
English. Foreign entities are generally
not eligible for funding from NASA.
Therefore, proposals from foreign entities should not include a cost plan unless the proposal involves collaboration
with a U.S. institution, in which case a
cost plan for only the participation of
the U.S. entity must be included
(unless otherwise noted in the AO).
(iii) Persons planning to submit a
proposal should arrange with an appropriate foreign governmental agency for
a review and endorsement of the proposed activity. Such endorsement by a

1872.705–2

foreign organization indicates that the
proposal merits careful consideration
by NASA and that, if the proposal is selected, sufficient funds will be available to undertake the activity envisioned.
(iv) Proposals including the requested number of copies and letters of
endorsement from the foreign governmental agency must be forwarded to
NASA in time to arrive before the
deadline established for each AO.
(v) Those proposals received after the
closing date will be treated in accordance with NASA’s provisions for late
proposals. Sponsoring foreign government agencies may, in exceptional situations, forward a proposal directly to
the above address if review and endorsement is not possible before the
announced closing date. In such cases,
NASA should be advised when a decision on endorsement can be expected.
(vi) Shortly after the deadline for
each AO, the Program Office will advise the appropriate sponsoring agency
which proposals have been received and
when the selection process should be
completed. A copy of this acknowledgment will be provided to each proposer.
(vii) Successful and unsuccessful proposers will be contacted directly by the
NASA Program Officer coordinating
the AO. Copies of these letters will be
sent to the sponsoring Government
agency.
(viii) NASA’s Office of External Relations will then begin making the arrangements to provide for the selectee’s participation in the appropriate
NASA program. Depending on the nature and extent of the proposed cooperation, these arrangements may entail:
(A) An exchange of letters between
NASA and the sponsoring foreign governmental agency.
(B) An agreement or Memorandum of
Understanding between NASA and the
sponsoring foreign governmental agency.
(b) Cost Plan (U.S. Investigations Only)
The cost plan should summarize the
total investigation cost by major categories of cost as well as by function.
(1) The categories of cost should include the following:

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48 CFR Ch. 18 (10–1–02 Edition)

(i) Director Labor—List by labor category, with labor hours and rates for
each. Provide actual salaries of all personnel and the percentage of time each
individual will devote to the effort.
(ii) Overhead—Include indirect costs.
Usually this is in the form of a percentage of the direct labor costs.
(iii) Materials—This should give the
total cost of the bill of materials including estimated cost of each major
item. Include lead time of critical
items.
(iv) Subcontracts—List those over
$25,000, specify the vendor and the basis
for estimated costs. Include any baseline or supporting studies.
(v) Special Equipment—Include a list
of special equipment with lead and/or
development time.
(vi) Travel—List estimated number
of trips, destinations, duration, purpose, number of travelers, and anticipated dates.
(vii) Other Costs—Costs not covered
elsewhere.
(viii) General and Administrative Expense—This includes the expenses of
the institution’s general and executive
offices and other miscellaneous expenses related to the overall business.
(ix) Fee (if applicable).
(2) Separate schedules, in the above
format, should be attached to show
total cost allocable to the following:
(i) Principal Investigator and other
Investigators’ costs.
(ii) Instrument costs.
(iii) Integration costs.
(iv) Data reduction and analysis including the amount and cost of computer time.
(3) If the effort is sufficiently known
and defined, a funding obligation plan
should provide the proposed funding requirements of the investigations by
quarter and/or annum keyed to the
work schedule.
(4) Use of NASA funds. NASA funding
may not be used for foreign research efforts at any level, whether as a collaborator or a subcontract. The direct purchase of supplies and/or services, which
do not constitute research, from nonU.S. sources by U.S award recipients is
permitted. Additionally, in accordance
with the National Space Transportation Policy, use of a non-U.S. manu-

factured launch vehicle is permitted
only on a no-exchange-of-funds basis.
[62 FR 4477, Jan. 30, 1997, as amended at 64
FR 48562, Sept. 7, 1999; 65 FR 3154, Jan. 20,
2000]

1872.705–3 Appendix C: Glossary of
Terms and Abbreviations Associated with Investigations.
Advisory
Committee
Subcommittee—Any committee, board,
commission, council, conference, panel,
task force; or other similar group, or
any subcommittee or other subgroup
thereof, that is not wholly composed of
full-time Federal Government employees, and that is established or utilized
by NASA in the interest of obtaining
advice or recommendations.
Announcement of Opportunity (AO)—
A document used to announce opportunities to participate in NASA programs.
AO Process—A term used to describe
the program planning and acquisition
procedure used to acquire investigative
effort, initiated by an AO.
Categorization—The process whereby
proposed investigations are classified
into four categories: synopsized here as
Category I—recommended for immediate acceptance; Category II—recommended for acceptance but at a
lower priority than Category I proposals; Category III—sound investigations requiring further development;
Category IV—rejected.
Co-Investigator (Co-I)—Associate of a
Principal Investigator, responsible to
the Principal Investigator for discrete
portions or tasks of the investigation.
A NASA employee can participate as a
Co-I on an investigation proposed by a
private organization.
Data Users—Participants in NASA
programs, selected to perform investigations utilizing data from NASA
payloads or facilities.
Experiments—Activities or effort
aimed at the generation of data.
NASA-sponsored experiments generally
concern generation of data obtained
through measurement of aeronautical
and space phenomena or use of space to
observe earth phenomena.
Federal
Acquisition
Regulation
(FAR)—The regulations governing the
conduct of acquisition.

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Flight—That portion of the mission
encompassing the period from launch
to landing or launch to termination of
the active life of spacecraft. The term
shuttle ‘‘flight’’ means a single shuttle
round trip—its launch, orbital activity,
and return; one flight might deliver
more than one payload. More than one
flight might be required to accomplish
one mission.
Flight
Investigaton—Investigation
conducted utilizing aeronautical or
space instrumentation.
Flight Opportunity—A flight mission
designed to accommodate one or more
experiments or investigations.
Guest
Investigators—Investigators
selected to conduct observations and
obtain data within the capability of a
NASA mission, which are additional to
the mission’s primary objectives.
Sometimes referred to as Guest Observers
Investigaton—Used interchangeably
with ‘‘Experiments.’’
Investigation Team—A group of investigators collaborating on a single
investigation.
Investigator—A participant in an investigation. May refer to the Principal
Investigator, Co-Investigator, or member of an investigation team.
Mission—The performance of a coherent set of investigations or operations
in space to achieve program goals.
(Example: Measure detailed structure
of Sun’s chromosphere; survey mineral
resources of North America.)
NASA FAR Supplement—Acquisition
regulations promulgated by NASA in
addition to the FAR.
NMI—NASA Management Instruction.
Notice of Intent—A notice or letter
submitted by a potential investigator
indicating the intent to submit a proposal in response to an AO.
Payload—A specific complement of
instruments, space equipment, and support hardware carried to space to accomplish a mission or discrete activity
in space.
Peer Group—A gathering of experts
in related disciplinary areas convened
as a subcommittee of the Program Office Steering Committee to review proposals for flight investigations.
Peer Review—The process of proposal
review utilizing a group of peers in ac-

1872.705–3

cordance with the categorization criteria as outlined in this Handbook.
Principal Investigator (PI)—A person
who conceives an investigation and is
responsible for carrying it out and reporting its results. A NASA employee
can participate as a PI only on a government-proposed investigation.
Program—An
activity
involving
human resources, materials, funding,
and scheduling necessary to achieve desired goals.
Project—Within a program, an undertaking with a scheduled beginning and
ending, which normally involves the
design, construction, and operation of
one or more aeronautical or space vehicles and necessary ground support in
order to accomplish a scientific or
technical objective.
Project Office—An office generally
established at a NASA field installation to manage a project.
Selection Official—The NASA official
designated to determine the source for
award of a contract or grant.
Space Facility—An instrument or series of instruments in space provided
by NASA to satisfy a general objective
or need.
Steering
Committee—A
standing
NASA sponsored committee providing
advice to the Program Associate Administrators and providing procedural
review over the investigation selection
process. Composed wholly of full-time
Federal Government employees.
Study Office—An office established
at a NASA field installation to manage
a potential undertaking which has not
yet developed into project status.
Subcommittee—An arm of the Program Office Steering Committee consisting of experts in relevant disciplines to review and categorize proposals for investigations submitted in
response to an AO.
Supporting Research and Technology
(SR&T)—The programs devoted to the
conduct of research and development
necessary to support and sustain NASA
programs.
Team—A group of investigators responsible for carrying out and reporting the results of an investigation or
group of investigations.
Team Leader—The person appointed
to manage and be the point of contact
for the team and who is responsible for

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assigning respective roles and privileges to the team members and reporting the results of the investigation.
Team Member—A person appointed
to a team who is an associate of the

other members of the team and is responsible to the team leader for assigned tasks or portions of the investigation.

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