TABLE OF CONTENTS
SUBPART 1842.1 CONTRACT AUDIT SERVICES
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
1842.202 Assignment of contract administration.
1842.202-70 Retention of contract administration.
1842.270 Contracting officer technical representative (COTR) delegations.
1842.271 NASA clause.
1842.707 Indirect rate ceiling approval procedures.
1842.7302 Reportable audit disposition documentation.
CONTRACT ADMINISTRATION AND AUDIT SERVICES
1842.101 Contract audit
(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). Contracting officers should direct questions to the Headquarters Office of Procurement (Code HK).
NASA contracting activities shall assess their delegations to DOD semiannually to determine changes in delegation patterns that could result in significant changes in DOD manpower requirements or 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. Contracting activities shall advise the Headquarters Office of Procurement Contract Management Division when an assessment indicates a significant change in required DOD support.
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 services 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 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 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.
(b) Special instructions.
(i) The functions described in 42.302(b)(1) and the
following subparagraphs of 42.302(a) are normally retained: (3), (10), (12),
(13), (14), (15), (17), (18), (19), (20), (21), (22), (23), (24), (29), (32),
(43), (44), (45), (46), (48), (51), (56), (58), (59), (62), (63), (64), (65),
(69), and (70).
(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).
(ii) At time of contract award, prepare and forward NASA Form 1430, Letter of Contract Administration Delegation, General, and appropriate appendices (NASA Form 1430A, 1430B, 1430C, and 1430D) to the contract administration office
(iii) Forward NASA Form 1431, Letter of Acceptance of Contract Administration, with each NASA Form 1430 and appropriate appendices. 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 contact 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 (
(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,
1842.202-70 Retention of contract administration.
(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 periods of performance of 90 days or less.
(3) Contracts with periods of performance of 91 to 180 days that do not include all of the following:
(i) A small business subcontracting plan.
(ii) Government-furnished property.
(iii) Progress payments, if a fixed-price type contract.
(4) Purchase orders without Government source inspection requirements.
(5) Contracts requiring only on-site performance.
(6) Contracts requiring work in the vicinity of the awarding center where DOD contract administration services are not reasonably available.
(b) The determination to assign Quality Assurance, Property Administration or Plant Clearance for administration shall be made after review by the cognizant technical personnel.
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. 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) If necessary, the contracting officer may appoint an alternate COTR to act during short absences of the COTR, such as when the COTR is on leave or travel. When approved by the Procurement Officer and in limited circumstances, warranted by contract scope, workload, and the need to provide adequate oversight, the contracting officer may appoint more than one alternate COTR on a contract. If more than one alternate COTR is appointed, the contracting officer shall provide the COTR, the alternate COTR(s), and the contractor written guidance specifying how the line of succession works to clearly ensure each party knows who is acting as the COTR at any given time.
(c) NASA Form 1634, Contracting Officer
Technical Representative (COTR) Delegation, shall be used to appoint COTRs. The
contracting officer will modify the form to address the specific contract
functions delegated to the COTR or retained by the contracting officer. COTRs cannot redelegate
their duties and responsibilities 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 one individual is appointed as a COTR on more than one
contract, separate delegations shall be issued for each contract. A separate
NASA Form 1634 shall be used to appoint the alternate COTR(s).
(d) 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. The COTR and his or her immediate supervisor are responsible for promptly notifying the contracting officer when the COTR has a change in station, duty assignment, or leaves Government service.
(e) With the exception of delegations made to construction contract COTRs to issue emergency on-site change orders, NASA Form 1634 shall not be used to authorize a COTR to initiate procurement actions or in any way cause a change to the contract or increase the Government's financial obligations. Instead, any delegations of procurement authority to COTRs shall be made in accordance with FAR 1.603-3 and the NASA Procurement Career Development and Training Policy, available at http://prod.nais.nasa.gov/portals/pl/training.html. When delegating the COTR authority to issue emergency on-site change orders, the contracting officers shall specify in NASA Form 1634 a not to exceed limitation on this authority. In no event shall the limitation exceed $25,000.
(f) Each COTR shall acknowledge receipt and accept the delegation by signing the original delegation letter and returning it to the contracting officer. The contracting officer shall file original of the COTR delegation letter 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.
(g) Federal Acquisition Certification for Contracting Officer Technical Representatives (FAC-COTR) Requirements.
(1) These requirements apply to all individuals appointed as COTRs and alternate COTRs on NASA contracts, including Phase II and Phase III awards made under NASA's Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) Programs. These requirements do not apply to individuals managing grants, or Phase I SBIR or Phase I STTR awards.
(2) FAC-COTR certificates from any civilian agency are equivalent to NASA FAC-COTR certificates. The following certificates, from NASA or any civilian agency, are equivalent to a NASA FAC-COTR certificate:
(i) Federal Acquisition Certification in Contracting (FAC-C) Level I or above; or
(ii) Federal Acquisition Certification for Program and Project Managers (FAC-P/PM) Mid-Level/Journeyman.
(3) An individual with a FAC-COTR does not necessarily meet the requirements for the FAC-C Level I or the FAC-P/PM mid-level/journeyman.
(4) For recordkeeping purposes, individuals with equivalent certificates who will be appointed as COTRs must submit a copy of their equivalent certificate to the ACM to be recorded as meeting NASA FAC-COTR requirements.
(5) Basic COTR Training. To earn a NASA FAC-COTR certificate, individuals must complete 40 hours of basic COTR training approved by the ACM. ACM approved training is available under the NASA Shared Service Center’s Agency-wide COTR Training Blanket Purchase Agreement (BPA).
(6) Continuing Education. COTRs must maintain their skills currency through continuing education. To maintain a FAC-COTR, COTRs are required to earn 40 continuous learning points (CLPs) of skills currency training every two years. The two-year continuous learning cycle is set for all civilian agencies for the following timeframes: October 01, 2009, until September 30, 2011, October 01, 2011 until September 30, 2013, and so forth.
(7) With the exception of the NASA-specific COTR refresher training, there are no specific courses required for COTR continuing education. Supervisors remain responsible for working with COTRs to identify those activities and opportunities of greatest benefit to the professional development of an individual. The training, professional activities, education and experience that are used to meet the continuing education requirements must be job related.
(i) Each two-year cycle shall include NASA-specific COTR refresher training which has been approved by the ACM. ACM approved training is available under NASA Shared Service Center’s Agency-wide COTR Training BPA.
(ii) Appendix A to the Office of Federal Procurement Policy’s memorandum, The Federal Acquisition Certification for Contracting Officer Technical Representatives, dated November 26, 2007, provides additional guidance on determining continuous learning points. The memorandum is available at http://www.fai.gov/pdfs/11-26-COTR-Memo.pdf.
(8) A FAC-COTR will expire if the continuing education requirements are not met and the individual will no longer be eligible to be a COTR.
(9) FAC-COTR training, both basic and continuous, will be tracked in SATERN. COTRs are responsible for ensuring their SATERN learning history is accurate.
(h) The contracting officer shall verify that the proposed COTR has a FAC-COTR before signing NASA Form 1634. The Procurement Officer (PO) may defer, for a period not to exceed six months, all or part of the FAC-COTR requirements in writing, on a case-by-case basis, if granting the deferment is in the best interest of the Agency. This authority shall be used only when necessary. A written justification shall specify the reasons for and conditions of the deferment. A copy of the justification shall be furnished to the ACM and documented in the contract file(s).
(1) If the proposed COTR has not completed basic COTR training, the PO shall ensure the proposed COTR receives appropriate interim training until the required COTR basic training is completed. Interim training is a stop gap measure to ensure the COTR understands his or her authority and responsibilities. It may include a briefing or on-line training. Completion of the interim training shall be documented in the applicable contracts file(s).
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.
1842.302 Contract administration
(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 Guidelines for EVMS, is normally delegated to DCMA.
(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 problems 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 post-award conference shall address action taken and planned to ensure
effective communication with the contract administration office during the performance of the contract.
(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 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).
1842.707 Indirect rate ceiling approval procedures.
(a) The AA for Procurement is the approval authority for use of an indirect rate ceiling provision in a solicitation or contract. Requests for approval shall be submitted through the Headquarters Office of Procurement, Program Operations Division. Such requests shall be constructed in the form of a Determination & Finding (D&F) which shall, at a minimum, contain a copy of the proposed indirect rate ceiling provision, a justification as to why such a provision is necessary, and the associated benefits to the Government. The Program Operations Division analyst shall coordinate all indirect rate ceiling approval requests with Headquarters Legal, the Cognizant Administrative Contracting Officer, and the cognizant Contract Management Division analyst.
(b)(1) Indirect rate ceilings should only be used in those situations described in FAR 42.707(b)(1)(i) and (ii). On competitive procurements, if the situation cited in FAR 42.707(b)(1)(iii) arises during the cost realism evaluation, use of an indirect rate ceiling provision should be proposed as part of the SEB presentation and the above approval procedures initiated at that time.
(c) All indirect rate ceiling provisions must address, at a minimum, the indirect rates being capped; the procedures for possible adjustment of ceiling rates if certain circumstances warrant such adjustment; and the elements identified in FAR 42.707(c).
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.
(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 (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 (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 (6) of this section.
(5) The previous year's final rates.
(6) Final rates for another fiscal year closest to the period for which quick-closeout 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.
1842.803 Disallowing costs after
(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.
(D) Authorizing direct submission of interim vouchers for provisional payment to disbursing offices for contractors with approved billing systems.
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 must be forwarded to the fiscal or financial management office for
(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.
(b) The installation shall immediately notify the Headquarters Office of Procurement (Code HS) of the request to execute a novation (successor-in-interest) or change-of-name agreement.
(h) The contracting officer shall forward one copy of the agreement to Code HS.
1842.1203-70 DOD processing
of novation and change-of-name agreements on behalf of NASA.
(a) Copies of novation and change-of-name 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.
1842.1305 Contract clauses.
(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.
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.
(a) Not later than 120 days after the end of the period of performance on contracts having a period of performance 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 anniversary 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) 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) The Contractor Performance Assessment Reporting System (CPARS) shall be used to document evaluations. This provides for a five-tiered rating covering the following attributes: quality, schedule, cost control (not required for firm-fixed-price contracts or firm-fixed-price contracts with economic price adjustment), business relations, management of key personnel, utilization of small business, and other considerations within the CPARS module; Quality, Key Consultants, Design/Engineering, and Construction within the ACASS module; and Quality, Management, Timely Performance, Labor Standards, and Safety Standards within the CCASS module. In accordance with FAR 16.401(f) for Cost Plus Award Fee or Fixed Price Award Fee type contracts, contracting officers shall complete the following evaluation information in the Award Fee Evaluation System module in the NASA Acquisition Internet Service: available award fee amount, amount of award fee earned, award fee rating, how the use of award fee did or did not motivate the contractor’s overall cost, schedule and technical performance as measured against contract requirements in accordance with the criteria stated in the award fee plan and how the objectives were enhanced by using an award fee contract as stated in the determination and findings required at FAR 16.401(d). 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 requires agencies to use contractor performance information that is within three years (six years for construction and architect-engineer contracts) of the completion of contract performance, this information shall nevertheless be retained in the contract file as provided in FAR 4.8, Government Contract Files.
1842.7001 Observance of legal
(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.
1842.7002 Travel outside of the
The contracting officer shall insert the clause at 1852.242-71, Travel Outside of the
The contracting officer must insert the clause at
Emergency Medical Services and Evacuation, in all solicitations and contracts
when employees of the contractor are required to travel outside the
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.
(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 redetermination, and fixed-price incentive contracts when the following dollar, period of performance, and scope criteria are met:
Period of Performance
$500K to $999K
1 year or more
$1,000,000 and over
Less than 1 year
$1,000,000 and over
1 year or more
(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 NPR 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 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 NPR 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.
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.
1842.7301 NASA external audit
(a) This section implements OMB Circular No. A-50 and NASA Policy Directive (NPD) 9910.1, “Government Accountability Office/NASA Office of Inspector General Audit Liaison, Resolution, and Followup”, which provides more detailed guidance. Recommendations from external audits (OMB Circular No.
(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.
(d)(1) All reportable contract audit reports as defined by Chapter 15, Section 6, of the DCAA Contract Audit Manual (CAM) for which NASA has resolution and disposition responsibility shall be entered into NASA’s Corrective Action Tracking System (CATS), with the information updated at least quarterly until the audit recommendations are all resolved and dispositioned (see paragraph (e) (1) of this section). Reportable audits issued to DCMA on actions for which contract administration has been delegated are not subject to this requirement because DOD is required to track and maintain these audit reports; and
(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.
(ii) Audit findings impacting more than one NASA contract are the responsibility of the NASA contracting officer providing the preponderance of funding to the particular contractor for the contractor fiscal year covered by the audit report (lead contracting officer). The lead contracting officer should furnish a copy of the audit report to all NASA contracting officers with contracts impacted by the audit report. Those contracting officers should be provided the opportunity to participate in the negotiations or provide input into the negotiation strategy. At the conclusion of the negotiations, the lead contracting officer is to provide a copy of the negotiation memorandum to the DCAA office that issued the audit report, as well as to the contracting officers for the other impacted NASA contracts.
(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, the Headquarters Office of Procurement Analysis Division, and each Center procurement office that has awards impacted by the dispositioned findings.