04-12

Procurement Information Circular

June 9, 2004

CONTRACT MODIFICATIONS FOR MONTHLY PROPERTY FINANCIAL REPORTING

 

PURPOSE:  To provide guidance on the need to modify certain contracts as follows:

   1.  Change quarterly property financial reporting requirements to monthly reporting, with additional data elements;

   2.  Add monthly property financial reporting to follow-on and other existing contracts with $10 million or more in NASA property; and

   3.  Require electronic submission of both NF 1018 and monthly property financial reports.

 

BACKGROUND:  During the Fiscal Year (FY) 2003 financial statement audit, National Aeronautics and Space Administration’s (NASA) auditors reported that NASA still lacks adequate controls to reasonably assure that Property, Plant and Equipment and Materials are presented fairly in the financial statements.  NASA is committed to resolving this weakness and to meeting the OMB accelerated FY 2004 Quarterly financial statement requirement.  The auditors recommended a continued enhancement of NASA Headquarters policies and procedures and property reporting instructions to ensure that all contractor requirements contained therein meet NASA’s needs for financial statement reporting purposes.  To that end, 58 contracts have been initially identified that will need to be modified to require detailed monthly property reporting.  This change is necessary to allow for a more thorough validation of contractor data, which will, in turn, permit NASA to more accurately reflect the value of its assets in its financial statements.

 

GUIDANCE:  No later than June 30, 2004, contracting officers shall modify the contracts listed on Enclosure 1 to reflect the requirement for monthly submission of itemized property data to be used for financial reporting.  If any of the Enclosure 1 contracts will be completed by June 30, 2004, any follow-on contract must include the monthly reporting in addition to the annual NF1018 requirement.  Any other contracts not included on Enclosure 1 that are anticipated to have total NASA property in excess of $10 million as of June 30, 2004, must also be modified.  Additionally, contractors must submit both reports electronically using the existing NF 1018 Electronic Submission System (NESS) for the annual NF1018 and the NASA Contractor-Held Asset Tracking System (CHATS), which is scheduled for rollout by June 30, 2004, for monthly reporting.  If CHATS is not up and running, the report should be submitted via email to nasacontractorproperty@nasa.gov.  Monthly reporting will require contractors to provide additional data elements (Work Breakdown Structure for new acquisitions and Contract Work-in-Process, as well as Fiscal Year affected by an Adjustment).

 

EFFECTIVE DATE:  The first monthly report required by this PIC is for July 2004, and is due NLT August 21.  If CHATS is not up and running, the report must be submitted via email to nasacontractorproperty@nasa.gov.  This PIC shall remain in effect until canceled or superseded.

 

NOTE:  The monthly submittal for July does not relieve the contractor requirement to submit the quarterly report for the period ending June 30, 2004, if one is due.

 

HEADQUARTERS CONTACT:  Lou Becker, Code HK, (202) 358-4593, e-mail: lou.becker@nasa.gov.

 

 

James A. Balinskas

Director, Contract Management Division

 

Enclosures

ENCLOSURE 1

 

 

Center

Contract Number

Contractor

1

ARC

NAS 2 97001

USRA

2

GRC

NAS 3 01135

GENERAL ELECTRIC CO

3

GRC

NAS 3 99155

NORTHROP GRUMMAN INFO TECH INC

4

GSFC

NAS 5 01090

SWALES & ASSOCIATES INC

5

GSFC

NAS 5 03003

NATIONAL SCIENTIFIC BALLOON FAC

6

GSFC

NAS 5 03098

RAYTHEON

7

GSFC

NAS 5 26555

ASSN UNIV RESEARCH & ASTRON SPACE

8

GSFC

NAS 5 32314

NORTHROP GRUMMAN SYSTEMS CORP

9

GSFC

NAS 5 32799

RAYTHEON OPTICAL SYSTEMS INC

10

GSFC

NAS 5 32900

BOEING SATELLITE SYSTEMS INC

11

GSFC

NAS 5 32954

T R W INC

12

GSFC

NAS 5 50000

LOCKHEED MARTIN CORP

13

GSFC

NAS 5 60000

RAYTHEON INFORMATION SYSTEM CO

14

GSFC

NAS 5 97271

JOHNS HOPKINS UNIV

15

GSFC

NAS 5 98009

NEW MEXICO STATE UNIV LAS CRU

16

GSFC

NAS 5 98020

P R C INC

17

GSFC

NAS 5 98040

BALL AEROSPACE & TECH CORP

18

GSFC

NAS 5 99089

BALL AEROSPACE & TECH CORP

19

GSFC

NAS 5 99124

Q S S GROUP INC

20

GSFC

NAS 5 99219

HONEYWELL TECHNOLOGY SOLS INC

21

GSFC

NNG04DA00C

HONEYWELL TECHNOLOGY SOLUTIONS

22

GSFC

NNG04DA01C

HONEYWELL TECHNOLOGY SOLUTIONS

23

JPL

NAS 7 1407

CALIF INSTITUTE TECHNOLOGY

24

JSC

NAS 9 01183

CANADIAN COMMERCIAL CORP

25

JSC

NAS 9 03045

CANADIAN COMMERCIAL CORP

26

JSC

NAS 9 20000

UNITED SPACE ALLIANCE

27

JSC

NAS 9 97001

INDYNE, INC

28

JSC

NAS 9 97150

HAMILTON SUNDSTRAND SPACE SYS

29

JSC

NAS 9 98100

LOCKHEED MARTIN SPACE OPS

30

JSC

NAS 9 99100

HONEYWELL TECHNOLOGY SOLS INC

31

JSC

NAS15 10000

BOEING CO

32

JSC

NNJ04AA03C

LOCKHEED MARTIN CORP

33

KSC

NAS 5 30722

MCDONNELL DOUGLAS CORP

34

KSC

NAS10 02007

BOEING SPACE OPERATIONS CO

35

KSC

NAS10 12215

DELAWARE NORTH PARKS

36

KSC

NAS10 99001

SPACE GATEWAY SUPPORT

37

LARC

NAS 1 19039

T R W INC


 

Center

Contract Number

Contractor

38

MSFC

NAS 8 00016

LOCKHEED MARTIN CORP

39

MSFC

NAS 8 01140

BOEING NORTH AMERICAN INC

40

MSFC

NAS 8 02070

BOEING CO. – HUNTINGTON BEACH

41

MSFC

NAS 8 02074

NORTHROP GRUMMMAN SPACE TECH

42

MSFC

NAS 8 03060

SMITHSONIAN INSTITUTION

43

MSFC

NAS 8 36801

UNITED TECHNOLOGIES CORP.

44

MSFC

NAS 8 37710

T R W INC.

45

MSFC

NAS 8 38100

THIOKOL CORP

46

MSFC

NAS 8 38680F

THIOKOL CORP

47

MSFC

NAS 8 39225

STANFORD UNIV

48

MSFC

NAS 8 39236F

BOEING NORTH AMERICAN

49

MSFC

NAS 8 39243F

LOCKHEED MARTIN CORP

50

MSFC

NAS 8 50000

BOEING CO

51

MSFC

NAS 8 60000

COMPUTER SCIENCES CORP

53

MSFC

NAS 8 97238

THIOKOL CORP

53

MSFC

NAS 8 98053

UNITED TECHNOLOGIES CORP

54

MSFC

NNM04AA01C

BOEING NORTH AMERICAN INC

55

MSFC

NNM04AA02C

SCIENCE APPLICATION INTL CORP

56

MSFC

NNM04AA02F

LOCKHEED MARTIN

57

MSFC

NNM04AA03F

BOEING NORTH AMERICAN

ENCLOSURE 2

 

General Instructions for Contractor-Held  Property Reporting

 

   1.  NF 1018 Reports.  The NASA Form (NF) 1018 report provides annual summary-level property management and financial data on Government-furnished and contractor-acquired NASA property.  Contractors shall report all NASA-owned property in US dollars, regardless of location.  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.  NASA Form (NF) 1018 reports shall be submitted using the NF 1018 Electronic Submission System (NESS) (http://ness.gsfc.nasa.gov).

 

   2.  Monthly Property Financial Reports.

         a. Additionally, monthly property financial reports are required with item level supporting data. This data shall be submitted for all items with an acquisition cost of $100,000 or more, in the contractor’s and its subcontractors’ possession, in the following classifications: real property, equipment, special test equipment, special tooling, and agency peculiar property.  Monthly reporting is not required for property in the above classifications with an acquisition cost under $100,000.  Monthly data shall also be submitted for items of any acquisition cost in the classifications of materials and contract work-in-process (WIP).  Itemized monthly data is required for materials and WIP line items of $100,000 and over.  Summary monthly data is required for materials and WIP line items under $100,000.  The monthly reports shall be electronically submitted using the Contractor-Held Asset Tracking System (CHATS) (http://nasachats.gsfc.nasa.gov) using the format described in the CHATS user’s manual. 

         b.  Acquisition costs shall be developed using actual costs to the greatest extent possible, especially costs directly related to fabrication such as labor and materials.  Supporting documentation shall be maintained and available for all amounts reported, including any amounts developed using estimating techniques.

         c. All Adjustments shall be thoroughly explained and directly related to a specific fiscal year.  If the fiscal year cannot be determined, the default shall be the previous fiscal year.  

         d. Work Breakdown Structures (WBS) shall be provided for all Contractor acquired property (CAP), WIP, and any new materials acquired.  The format shall be a five digit numerical level. (i.e. 803-10).  If the WBS is not identifiable, contact the NASA CFO Property Branch for further guidance, as outlined below.

         e. The data required for the monthly submission is due the 21st day after the close of the month.

e.g. August 21 for the month ending July 31

        September 21 for the month ending August 31

        October 21 for the month ending September 30   

NOTE:  The monthly submittal for July does not relieve the contractor requirement to submit the quarterly report for the period ending June 30, 2004, if one is due.

   3. The monthly property financial reports required by this PIC are separate from, and in addition to the annual NF 1018 reports.  Due date for submittal of the annual NF 1018 is extended to November 30 for the contracts listed on Enclosure 1. 

   4. Both the NF 1018 report data and the September monthly report data are as of September 30.  Corrections in monthly report data shall be handled as adjustments in the next monthly report after discovery of the error.  (e.g. Errors in the September monthly report shall be reported as adjustments in the October monthly report.  The NF 1018 shall reflect the corrected numbers and the contractor shall provide a note regarding the corrected monthly report error under Comments in the NF 1018.)  Errors in the NF1018 found after the November 30 submission shall be reported as adjustments in the 2005 NF 1018, unless immediate correction and resubmission are directed by NASA.

Questions may be directed to the following individuals of the NASA CFO Property Branch Office:

         Lynne Carey, (202) 358-4552, e-mail: lynne.carey@nasa.gov

         Elaine Slaugh, (202) 358-2599, e-mail: elaine.m.slaugh@nasa.gov