Procurement Information Circular
May 5, 2010
CLASS DEVIATION TO NASA FAR SUPPLEMENT 1852.232-70 NASA MODIFICATION OF FAR 52.232-12
PURPOSE: To provide a class deviation that implements use of new Standard Form 425, Federal Financial Report that replaces Standard Form 272, Federal Cash Transactions Report, and Standard Form 272A, Federal Cash Transactions Report Continuation, pending incorporation into the NFS.
BACKGROUND: In Federal Register Volume 73, Number 157, page 47246, dated Wednesday, August 13, 2008, the Office of Federal Financial Management, Office of Management and Budget (OMB) advised that the SF-272 and SF-272A would be replaced by SF-425 no later than October 1, 2009. Agencies were directed to transition from the SF-272 and SF-272A to the SF-425 as soon as possible after October 1, 2008 and no later than October 1, 2009. To meet that requirement and because NASA has converted the reporting of Letter of Credit/Advance Payment accounts from the institutional level to the subaccount level, and utilizes the service of the Department of Health and Human Services (DHHS) which requires electronic submissions, NASA will substitute an electronic version of the SF-425 for the SF-272 and SF-272A in its contracts that contain FAR clause 52.232-12.
GUIDANCE: This deviation authorizes contacting officers to utilize the enclosed, deviated version of NFS 1852.232-70 which includes reference to the new Standard Form 425, Federal Financial Report. Contracting Officers shall modify all existing active contracts that contain clause 52.232-12 to reflect this revision.
EFFECTIVE DATE: This PIC is effective as dated and shall remain in effect until implemented in the NFS or otherwise rescinded.
HEADQUARTERS CONTACT: Bill Roets, Contract Management Division, (202) 358-4483, e-mail: email@example.com.
William P. McNally
NASA MODIFICATION OF FAR 52.232-12
(a) Basic Clause. (1) In paragraph
(e), Maximum Payment, in the sentence that begins "When the sum of,"
change the word "When" to lower case and insert before it:
"Unliquidated advance payments shall not exceed $..... at
any time outstanding. In addition.…"
(2) In paragraph (m)(1), delete "in the form prescribed by the administering office" and substitute "and
Standard Form 272, Federal
Cash Transactions Report, and, if appropriate, Standard Form 272-A, Federal
Cash Transactions Report Continuation."
(b) Alternate II (if incorporated in the contract). In paragraph (e), Maximum Payment, in the sentence that begins "When the sum of," change the word "When" to lower case and insert before it: "Unliquidated advance payments shall not exceed $..... at any time outstanding. In addition.…"
(c) Alternate V (if incorporated in the contract). (1) Substitute the following for paragraph (b): "(b) Use of funds. The Contractor may use advance payment funds only to pay for properly allocable, allowable, and reasonable costs for direct materials, direct labor, indirect costs, or such other costs approved in writing by the administering contracting office. Payments are subject to any restrictions in other clauses of this contract. Determinations of whether costs are properly allocable, allowable, and reasonable shall be in accordance with generally accepted accounting principles, subject to any applicable subparts of Part 31 of the Federal Acquisition Regulation, other applicable regulations referenced in Part 31, or Subpart 1831.2."
(2) In paragraph (d), Maximum Payment, in the sentence that begins "When the sum of," change the word "When" to lower case and insert before it: "Unliquidated advance payments shall not exceed $........ at any time outstanding. In addition....…"
(3) In paragraph (j)(1), insert between "statements," and "and" "together with
Standard Form 272, Federal Cash Transactions
Report, and, if appropriate, Standard Form 272-A, Federal Cash Transactions
(4) If this is a Phase I contract awarded under the SBIR or STTR programs, delete paragraph (a) and substitute the following: "(a) Requirements for payment. Advance payments will be made under this contract upon receipt of invoices from the Contractor. Invoices should be clearly marked "Small Business Innovation Research Contract" or "Small Business Technology Transfer Contract," as appropriate, to expedite payment processing. One-third of the total contract price will be available to be advanced to the contractor immediately after award, another one-third will be advanced three months after award, and the final one-third will be paid upon acceptance by NASA of the Contractor's final report. By law, full payment must be made no later than 12 months after the date that contract requirements are completed. The Contractor shall flow down the terms of this clause to any subcontractor requiring advance payments."
(End of clause)