TABLE OF CONTENTS
1832.006-2 Definition.
1832.007 Contract
financing payments.
SUBPART 1832.1 NON-COMMERICAL ITEM PURCHASE FINANCING
1832.111 Contractor
clauses for non-commercial purchases.
1832.111-70 NASA contract
clause.
SUBPART 1832.2
COMMERCIAL ITEM PURCHASE FINANCING
1832.202-1 Policy.
1832.206 Solicitation
provisions and contract clauses.
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.
1832.704-70 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
1832.906 Contract
financing payments.
1832.908 Contract
clauses.
SUBPART 1832.10 PERFORMANCE-BASED PAYMENTS
1832.1001 Policy.
1832.1004 Procedure.
1832.1005 Contract clauses.
1832.1009 Title.
SUBPART 1832.11 ELECTRONIC FUNDS TRANSFER
1832.1110 Solicitation
provision and contract clauses.
PART 1832
CONTRACT FINANCING
1832.006-2 Definition.
The Director, Acquisition Integrity Program
is the Agency remedy coordination official.
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
consideration and the analysis determining that value.
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.
1832.202-1 Policy.
(b)(6) Advance payment limitations do not apply to expendable launch
vehicle (ELV) service contracts.
1832.206 Solicitation provisions and contract clauses.
(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.
1832.402 General.
(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.
1832.406 Letters of credit.
(b)(1) Each installation is considered a contracting agency for
the purposes of this requirement.
1832.407 Interest.
(d)(1) Advance payments without interest are authorized.
1832.409 Contracting officer action.
1832.409-1 Recommendation for approval.
1832.409-170 NASA
procedure for approval.
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:
(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 1815.404-470);
(e) Information justifying the adequacy of security to cover
the maximum advance payment amount at any time outstanding.
1832.410
Findings, determination, and authorization.
(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), 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.
1832.412 Contract clause.
(e)
The contracting officer shall use Alternates IV and V when advance payments are
provided on Phase I contracts of the Small Business Innovation Research (SBIR)
or Small Business Technology Transfer (STTR) programs.
(f) See 1832.412(e).
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.
1832.501-1 Customary
progress payment rates.
(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
progress payments.
The
Director of the Headquarters Office of Procurement Contract Management Division
(Code HK) is the approval authority for the use of unusual progress payments.
1832.502-2 Contract
finance office clearance.
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).
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.
1832.503-5 Administration
of progress payments.
(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 administation 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.
1832.504 Subcontracts.
(c) Unusual progress payments
to subcontractors shall be approved in accordance with 1832.501-2.
Subpart 1832.7--Contract
Funding
(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 Chief Financial Officer, 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.
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 --
(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.
1832.705-2 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
fixed-price 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.
(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 lieu of "30th" in paragraphs (a)(1)(i)(A),
(a)(1)(i)(B), and (a)(1)(ii).
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 performance-based
payments, as well as the proposed performance-based payments evaluation
approach (see 1832.1004(e)(1)(ii)).
1832.1004 Procedure.
(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 analysing
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 alternate evaluation methods, e.g.,
qualitative evaluation under Mission Suitability or another appropriate factor.
1832.1005 Contract clauses.
(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)).
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.
1832.1110 Solicitation provision
and contract clauses.
(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.