10-18
Procurement Information Circular
November 15,
2010
CLASS DEVIATION TO NASA FAR SUPPLEMENT 1819.202,
1831.205-670,
1831.205-671, AND 1843.7003, ADJUSTMENT OF PROCUREMENT THRESHOLDS
PURPOSE: To
align NASA FAR Supplement thresholds
with revised FAR acquisition-related thresholds which went into effect on Oct.
1, 2010. As a result of the
changes to some FAR acquisition-related thresholds, the NASA FAR supplement, on
October 1, 2010, became inconsistent with the FAR. This deviation is issued to eliminate the
inconsistencies until permanent changes can be made to the NFS.
BACKGROUND: The FAR Council
issued a final rule on Aug 30, 2010 which adjusts various FAR thresholds, as
required by Section 807 of the Ronald W. Reagan National Defense Authorization
Act for Fiscal Year 2005. Section 807
requires an adjustment, every 5 years, of acquisition-related thresholds for
inflation using the Consumer Price Index (CPI) in a complex formula. All
thresholds are evaluated for adjustment, but not every threshold is changed
every five years, as application of the adjustment formula may indicate that a
change is not required. The Davis-Bacon
Act, Service Contract Act, and trade agreements thresholds are exempt from
adjustment. Likewise, non-acquisition
thresholds are not adjusted as part of this exercise. They include, but are not limited to, small
business size standards, claims, penalties, and required levels of insurance.
GUIDANCE: This deviation authorizes contacting officers to utilize
the enclosed, deviated version of NFS 1819.202, 1831.205-671/672, and
1843.7003, which include the new thresholds.
EFFECTIVE DATE: This PIC is effective as dated
and shall remain in effect until implemented in the NFS.
HEADQUARTERS CONTACT: Leigh
Pomponio, Contract Management Division, (202) 358-0592, e-mail: leigh.pomponio@nasa.gov.
/s/
William P. McNally
Assistant Administrator for Procurement
Enclosure
DISTRIBUTION:
PIC LIST
1819.202
Specific policies
The contracting officer shall complete a NASA
Form 1787 for the following:
- all acquisitions,
$100,000 and below the
simplified acquisition threshold, not set aside for small
business;
- all acquisitions
over $100,000 at or above the
simplified acquisition threshold, to include:
- those restricted for small
business participation,
- orders against Federal Supply Schedule contracts (notification
only),
- modifications adding new work,
- orders against Basic Ordering Agreements and Blanket Purchase
Agreements
- any
other acquisition, at the option of the contracting officer, for
acquisitions that do not meet the criteria in paragraphs 1 and 2.
*********
1831.205-670 Evaluation of
contractor and subcontractor compensation for service contracts.
(a) The contracting officer must evaluate the
reasonableness of compensation for service contracts:
(1) Prior to the award of a cost reimbursement or
non-competitive fixed-price type contract which has a total potential value in
excess of $500,000 the threshold for obtaining
certified cost or pricing data (FAR 15.403-4),
and
(2)
Periodically after award for cost reimbursement contracts, but at least every
three years.
(b) The contracting officer must ensure the
reasonableness of compensation is evaluated for cost reimbursement or
non-competitive fixed-price type service subcontracts under a prime contract
meeting the criteria in paragraph (a)(1) of this section where:
(1) The
subcontract has a total potential value in excess of $500,000 the
threshold for obtaining certified cost or pricing data (FAR 15.403-4);
and
(2) The
cumulative value of all of a subcontractor's service subcontracts under the
prime contract is in excess of 10 percent of the prime contract's total
potential value.
(c) (1) Offerors must be required to submit as part of their
proposals a compensation plan addressing all proposed labor categories. Offerors also must demonstrate in writing that their
proposed compensation is reasonable.
(2)
Subcontractors meeting the criteria in paragraph (b) of this section must be
required to comply with paragraph (c)(1).
(d) The contracting officer's preaward evaluation of each offeror's
and their subcontractors' compensation should be done as part of, or in
addition to DCAA audits, price analyses, or any other means deemed to be
necessary.
(e) The results of the contracting officer's
evaluation, including any excessive compensation found and its planned resolution, must be addressed in the prenegotiation
position memorandum, with the final resolution discussed in the price
negotiation memorandum.
(f) The contracting officer must ensure that the
reasonableness of compensation for cost reimbursement subcontracts meeting the
criteria in paragraphs (b)(1) and (2) of this section
is periodically reviewed after award, but at least every three years.
(g) The results of the periodic evaluations of
contractor and subcontractor compensation after contract award must be
documented in the contract file.
1831.205-671 Solicitation
provision.
The contracting officer must insert a provision
substantially the same as the provision at 1852.231-71, Determination of Compensation, in solicitations for
services which contemplate the award of a cost reimbursement or non-competitive
fixed-price type service contract having a total potential value in excess of $500,000 the
threshold for obtaining certified cost or pricing data (FAR 15.403-4).
*********
1843.7003 Procedures.
(a)(1) Issuance of undefinitized
contract actions with a Government estimated cost or price over $100,000 must
be approved in writing by the head of
the contracting activity.
(2) All other undefinitized
contract actions must be approved in writing by the procurement officer.
(3) In emergency situations,
approval may be given orally and subsequently confirmed in writing.
(4) The approval authorities in
paragraphs (a)(1) and (2) of this section are not
delegable.
(b) (1) Undefinitized
contract actions exceeding $100,000 must 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.
(2) The head of the contracting activity may waive the ceiling price or "not to
exceed" estimated cost figure and bilateral agreement requirements prior
to UCA issuance on the basis of urgency. This waiver authority is not
delegable. Any waivers shall be documented in the contract file.
(c) The changed contractual requirements set
forth in the UCA shall be clearly defined and shall be limited to the minimum
effort required to satisfy urgent program requirements while a cost proposal is
prepared, analyzed and negotiated.
(d) For undefinitized
contract actions with a Government estimate greater than $1,000,000 and not
excepted under subpart 1843.7004, a 180 day funding profile shall be obtained
from the contractor prior to execution of the undefinitized
contract action.
(e) Undefinitized
contract actions with a Government estimated cost or price greater than
$1,000,000 shall include a requirement that the change shall be separately
accounted for by the contractor to the degree necessary to provide the
contracting officer visibility into actual costs incurred pending definitization. The contracting officer may waive this
requirement for individual actions if there is a documented finding that such
accounting procedures would not be cost effective. Any such waiver shall not
affect existing NASA Form 533 or other financial reporting requirements set
forth in the contract.