Canceled by PN 97-67

01-16

Procurement Information Circular


June 29, 2001

CLASS DEVIATION TO THE NASA FAR SUPPLEMENT
LOWERING THE THRESHOLD FOR CENTER DIRECTOR APPROVAL
OF UNDEFINITIZED CONTRACT ACTIONS

PURPOSE: To provide a class deviation lowering the threshold set forth at NASA FAR Supplement (NFS) sections 1843.7003(a) and 1843.7003(b) for Center Director approval of undefinitized contract actions (UCAs), and the required use of bilateral agreements.

BACKGROUND: Through a Memorandum issued June 7, 2001, the NASA Administrator has directed that NASA reduce both the number and dollar value of agency UCAs. As part of this effort, the Office of Procurement has been directed to develop additional controls on the UCA process that will ensure that UCAs are used sparingly and for minimum requirements. Pending a comprehensive change to the NASA FAR Supplement implementing additional management controls, a deviation to the NFS is being initiated to lower the threshold for senior level management involvement in evaluating and approving the use of UCAs under center contracts.

GUIDANCE: A class deviation to the NASA FAR Supplement is granted to revise paragraphs 1843.7003(a) and 1843.7003(b)(1) of section 1843.7003 to read as follows:

(a) Issuance of undefinitzed contract actions with a Government estimated cost or price over $100,000 must be approved in writing by the Center Director. In emergency situations, this approval may be given verbally, and subsequently confirmed in writing. This approval authority is not delegable. Issuance of undefinitized contract actions with a Government estimated cost or price less than or equal to $100,000 shall also be minimized but may be approved on an exception basis in accordance with installation procedures.

(b) (1) Undefinitized contract actions exceeding $100,000 approved by the Center Director shall be issued as bilateral agreements setting forth a ceiling price or "not to exceed" estimated cost figure for the changed contractual 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.

 

EFFECTIVE DATE: This PIC is effective as dated and shall remain in effect until canceled or superseded.

HEADQUARTERS CONTACT: Jeff Lupis, Code HS, (202) 358-0462, e-mail: jlupis@hq.nasa.gov.

 

Tom Luedtke
Associate Administrator for Procurement