PART 1846


1846.000                                 Scope of part.

SUBPART        1846.3           CONTRACT CLAUSES
1846.370                                 NASA contract clauses.

1846.401                                 General.
1846.470                                 Contract clause.

1846.670                                 Introduction.
1846.670-1                              General.
1846.670-2                              Applicability.
1846.670-3                              Use.
1846.670-4                              Multiple shipments.
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.

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.


PART 1846

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" or “oversight.”  Insight requires the monitoring of Government-identified metrics and contracted milestones.  Insight is a continuum that can range from low intensity, such as reviewing quarterly reports, to high intensity, such as performing surveys and reviews.  Oversight occurs in line with the contractor's processes. The Government retains and exercises the right to concur or nonconcur with the contractor’s decisions. Nonconcurrence must be resolved before the contractor can proceed. Oversight is a continuum that can range from low intensity, such as Government concurrence in reviews (e.g., PDR, CDR), to high intensity oversight, in which the Government has day-to-day involvement in the contractor’s decision making process (e.g., hardware inspections).  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 a performance-based acquisition.    

Subpart 1846.3--Contract Clauses

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 are necessary to ensure astronaut safety.

Subpart 1846.4--Government Contract Quality Assurance

1846.401 General.
   (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.

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).
   (b) MIRRs are used to document contract quality assurance (CQA), acceptance and commercial shipping/packing lists used to evidence Government contract quality (CQA). CQA, 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.

1846.670-2 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 indefinite-delivery 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 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.

__________________________ (Signature of Authorized
                                            Government Representative)
__________________________ (Date)
__________________________ (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 (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 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. Reissuance 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.
   (iBlock 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 contract. Enter an alphabetic "O" if the FOB point cited in the contract is other than origin or destination.
   (nBlock 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.
       (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._____  (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       , Quantity       , Estimated Value       , Authority       ."
               (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       , date shipped       ."
               (vii) When shipments involve drums, cylinders, reels, containers, skids, etc., designated as returnable under contract provisions, enter and complete the following: "Return to          , Quantity       , Item         , 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/evaluation 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.
       (3) If a replacement shipment is involved, enter below the first digit of the quantity the letter "A" to 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 or CQA and acceptance are at destination, the authorized 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 activity (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.
   (yBlock 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;
       (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 or 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 Criteria for use of warranties.

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;
   (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.
   (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 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.