Procurement Information Circular

August 25, 2010




PURPOSE:  To provide guidance on notification to contractors of funding availability to ensure continuity of severable services funded with the CAS Appropriation.


BACKGROUND:  The NASA FY 2010 Appropriation Bill provides that NASA’s Cross-Agency Support Funds (CASX) are limited to a one-year period of availability. The funds will expire on September 30, 2010.  For FY 2010 CAS funds, NASA does not have contractual authority to write contracts across fiscal years for severable services nor fund them across fiscal years.  This limitation means contractors cannot use CAS funds obligated in FY 2010 for performance in FY 2011.  Therefore, the FY 2011 Continuing Resolution (CR) Authority and appropriations process can significantly impact the CAS-funded contracts. 


PIC 10-07 was issued to describe the preliminary steps contracting officers must take to determine contracts affected by the 2010 CAS funds limitation, and prepare those contracts and contractors for end-of-fiscal-year funding procedures.  This PIC supplements PIC 10-07; the two PICs should be considered jointly in the administration of affected contracts. 


GUIDANCE:    Notification of funds availability for severable work funded with FY 2011 CASX must be provided to the contractor by the Contracting Officer (CO) using the instruction below.  Notification to contractors shall take place only after the CO receives funding certifications for the FY 2011 CASX appropriation or after the Agency CFO provides authorization to proceed. 


The agency is in the process of developing the Critical Contract Funding Template (“the template”) which will identify critical service contracts with priority designations, center points of contact, contract numbers, contracting officers, and other important information.  The Agency may be required to fund critical services using a priority selection process depending upon the limitations of any continuing resolution, and consequently, the Agency may not be able to fund all of the contracts identified on the template.  Although this template will be used in the notification processes described below, COs cannot assume that all contracts will be funded and instead, shall proceed with contractor notification only upon receipt of contract-specific certification from the Center Funds Control team, or the OCFO or designee.  Detailed procedures are documented in the OCFO Memorandum entitled System Availability and Funds Distribution Actions for Start Up of FY 2011, which is enclosure 2 to this PIC and is available at: http://www.nasa.gov/pdf/473977main_SystemAvailabilityandFundsDistribution091410.pdf.


Significant CO activities include:


        i.            If the CR or appropriation is signed before 3:00 PM EDT on September 30, 2010, the Center Funds Control Team will notify contracting officers identified on the template by email, no later than 5:00 PM EDT on September 30, 2010, certifying availability of FY 2011 CR funds.  This notice shall include contract number, funding amounts at the appropriate level within the contract (i.e., contract, project, task order) as well as the number of days for which COs may fund FY 2011 performance.


Contracting officers shall then inform contractors that funds are available for performance in FY 2011 using the letter “Notice to Contractors:  FY 2011 CR Funding Availability for Severable Activity” (enclosure 1 to this PIC).  Centers are authorized to utilize alternative notification methods, consistent with the time available to ensure timely receipt by contractors, including e-mail and fax. The letter shall include dollar amounts authorized and the number of days the contractor is authorized to proceed in FY 2011. This interim method of notification is designed to prevent a break in contract performance until the Government opens its systems on October 1, 2010, and the CO issues a formal funding modification.   Depending upon the language in the CR, multiple interim notifications may be utilized until passage of an appropriations act for FY 2011.


      ii.            If the CR is signed after 3:00PM EDT, but before midnight EDT, on September 30, 2010, the Agency CFO or designee will notify the contracting officers identified on the template that funds are available for specified CAS-funded contracts to continue on October 1, 2010.  Once Contracting Officers receive the notification that funds are available from the Agency CFO or designee, then Contracting Officers shall notify those CAS contractors that they are authorized to proceed to work on October 1, 2010, and that further information will be provided to the contractors on that date.  The Centers have the option to follow the process in paragraph (i) if the CR is signed later than 3:00PM EDT.


    iii.            The Contracting Officers shall work with resource personnel on October 1, 2010 to issue modifications to obligate funds on the CAS contracts identified for funding, in order of their priority designation on the template.   The executed contract modifications shall supersede the letter notifications provided to the contractors (enclosure 1).  The contracting officer shall include the following statement in the modification: This contract modification supersedes the letter “Notice to Contractors:  FY 2011 CR Funding Availability for Severable Activity,” dated ________.”


    iv.            If the modification described in (iii) cannot be issued by October 1, 2010, Contracting officers shall send (enclosure 1) on October 1, 2010 to those CAS contractors who received an informal notice to proceed permitted in (ii).


REFERENCES:   Enclosure 1, Notice to Contractors: FY 2011 Funds Availability for Severable Activities; Enclosure 2, System Availability and Funds Distribution Actions for Start Up of FY 2011.


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


HEADQUARTERS CONTACT:  Michael L. Powers, Office of Procurement, Contract Management Division, (202) 358-2346, email: michael.l.powers@nasa.gov.


William P. McNally

Assistant Administrator for Procurement




   1. Notice to Contractors:  FY2011 CR Funding Availability for Severable Activity

   2. System Availability and Funds Distribution Actions for Start Up of FY 2011





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