03-14
Procurement
Information Circular
June 3, 2003
CONTRACT MODIFICATIONS FOR
INTERIM PROPERTY INFORMATION
PURPOSE:
To provide guidance on the need to:
1.
Modify the NASA Form (NF) 1018 reporting requirements to provide for more
periodic, detailed and timely submissions, and
2.
Modify a select group of existing contracts.
BACKGROUND:
During the Fiscal Year (FY) 2002 financial statement audit, National Aeronautics
and Space Administration’s (NASA) auditors, PricewaterhouseCoopers LLP (PwC),
identified a material weakness related to NASA’s internal controls over
materials and property, plant and equipment.
PwC recommended that NASA modify its NASA Form (NF) 1018 reporting
requirements for its contractors to provide for more periodic, detailed and
timely submissions. These changes are
necessary to allow for a thorough validation of contractor data, which will in
turn, permit NASA to meet the accelerated FY 2003 financial statement
completion date. To that end,
approximately 55 contracts have been identified that will need to be modified
to require detailed quarterly property reporting. NASA is committed to resolving this weakness and to meeting the
OMB accelerated FY 2003 financial statement completion date of November 14,
2003. In this regard, the Deputy Chief
Financial Officer has advised the Enterprises of the need to incorporate a
change to require quarterly reporting.
The Enterprises have concurred in the additional reporting
requirement. A change to the NASA FAR
Supplement reflecting these new requirements is being pursued.
GUIDANCE: Modify
the contracts listed on Enclosure 1 to reflect the need for quarterly
submission of NF 1018. If any of these
contracts will be completed by September 30, 2003, the follow-on contract
should also include the quarterly reporting requirement. Any contracts not included on the enclosure
that are anticipated to have property in excess of $10 million as of September 30,
2003, should also be modified.
Additionally, contractors should be requested to complete their reports
using the format described in Enclosure 2.
The reports should be submitted electronically.
EFFECTIVE DATE: This PIC is effective as dated and shall remain in effect until
canceled or superseded.
HEADQUARTERS CONTACT:
Lou Becker, Code HK, (202) 358-4593, e-mail: lou.becker@nasa.gov.
R. Scott Thompson Director,
Contract Management Division
Enclosures
Enclosure 2
General Instructions for NF 1018 Quarterly Reporting and
Detailed Spreadsheet
- The NF
1018 report provides financial data on Government-furnished and
contractor-acquired property to which NASA has title. Contractors shall report on all
NASA-owned property, in US dollars, (regardless of location) including
real property and equipment, special test equipment, special tooling, and
agency peculiar property, greater or equal to $100,000, as well as
materials and contract work in process of any value, in their possession
(including subcontractors).
Negative reports are required.
This reporting shall be completed in accordance with the NASA FAR
Supplement (NFS) Subpart 1845.7101 and any supplemental guidance provided
by the Contracting Officer.
Additionally, quarterly reports are also required. The reports shall be electronically
submitted using the format described in Enclosure 2.
- Acquisition
costs shall be developed using actual costs to the greatest extent
possible, especially costs directly related to fabrication such as labor
and materials. Where estimates are
used, there must be a documented basis.
Supporting documentation shall be maintained and available for all
amounts reported.
- Items
that are considered obsolete, in the plant clearance cycle, or heritage
assets must be reported separately.
Obsolete property is property for which there are no current plans
for use in their intended purpose.
Examples of obsolete property are items in configurations which are
no longer required or used by NASA or items held for engineering
evaluation purposes only. NASA may
have approved the retention of these items for programmatic reasons even
though they have no current plans to be used.
- The
due dates for the data required for the quarterly submissions are as follows:
July 21 for the
quarter ending June 30
October 15 for the
quarter ending September 30
January
21 for the quarter ending December 31
April 21 for the
quarter ending March 31
- Due date
for submittal of the annual NF 1018 has been extended to November 30 for
the contracts listed on Enclosure 1.
Complete the attached spreadsheet as follows:
PIC
Attachment Quarterly Property.xls
Enclosure 2 (Cont’d)
TAB ONE - SUMMARY: Complete a summary of property activity
for the reporting period. Normally, the
period would be defined as one quarter (three months). However, for the first data call, the period
is the first three quarters of Fiscal Year (FY) 2003, October 1, 2002 – June
30, 2003. Identify any amounts of
obsolete, plant clearance, or heritage asset items in columns f – h.
TAB TWO – ADJUSTMENTS: List all adjustments (with explanation)
that were reported in column b of the summary.
Complete all fields where applicable.
TAB THREE – EQUIPMENT TRANSACTIONS: List all transactions
(additions, deletions or modifications of equipment (including software)
accountable to this contract). For the purpose of this exercise, equipment
includes general purpose, special test, special tooling and agency peculiar
property greater or equal to $100,000.
Complete all fields. The total
of these items should equal columns C & D for lines 5 – 8 on the summary,
tab one.
TAB FOUR – MATERIALS >=$100k: Provide a listing of all materials with a unit price of $100,000
or more. Complete all fields. The total of these items should equal column
E of line 10 on the summary, tab one.
TAB FIVE – CONTRACT WIP:
Provide a listing (including description of item(s) and related NASA
program) of all Work in Process (WIP) which includes both construction in
progress and contract work in process projects which have accumulated costs of
$100,000 or more. WIP consists of
property items under development (i.e. not complete) and includes the costs of
all WIP regardless of value for all categories of property, including real
property, all types of equipment and material as well as WIP for International
Space Station and Space Shuttle components.
Do not include the costs of WIP for other assets destined for permanent
operation in space such as satellites and space probes and their
components. If WIP amounts are not
calculated by individual project, provide program, types of items and
methodology for determining values. The
total of these items should equal column E of line 11 on the summary, tab
one.
TAB SIX – HERITAGE ASSETS: Include a listing of all heritage
assets (any value) as of the end of the reporting quarter. Include all attributes listed.
TAB SEVEN – EQUIPMENT SEPTEMBER 30, 2002: For the June 30,
2003, submission only. Include a
listing of all equipment (general purpose, special test, special tooling and
agency peculiar) that was greater or equal to $100,000, which you reported as
of September 30, 2002. Totals should be
equal to the beginning balance on column A. of the summary, tab one. Include all attributes listed.
Please e-mail information required by this notification to: NASAContractorProperty@nasa.gov. Questions may be directed to the following:
Darwina
Marks, (202) 358-0989, e-mail: dmarks@hq.nasa.gov
Elaine
Slaugh, (202) 358-2599, e-mail: elaine.m.slaugh@nasa.gov