11-02

Procurement Information Circular


May 18, 2011

CLASS DEVIATION TO NASA FAR SUPPLEMENT

1806.304-70 and 1819.7103, ADJUSTMENT OF PROCUREMENT THRESHOLDS

 

PURPOSE:  To align NASA FAR Supplement thresholds with revised FAR acquisition-related thresholds which went into effect on October 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.  PIC 10-18 was issued and addressed several of these changes. This PIC addresses the remaining threshold changes. 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 August 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 five (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 (5) 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 process.  They include, but are not limited to, small business size standards, claims, penalties, and required levels of insurance.  On November 15, 2010, PIC 10-18 was issued addressing several threshold changes. This PIC addresses the remaining threshold items.

 

GUIDANCE:  This deviation authorizes contacting officers to utilize the enclosed, deviated version of NFS1806.304-70 and 1819.7103, which includes the new thresholds.  

  

EFFECTIVE DATE:  This PIC is effective as dated and shall remain in effect until implemented in the NFS. 

 

HEADQUARTERS CONTACT:  Craig Bowers, Contract Management Division, (202) 358-2235, e-mail: craig.w.bowers@nasa.gov.

 

 

William P. McNally

Assistant Administrator for Procurement

Enclosure

 

DISTRIBUTION:

  PIC LIST



1806.304-70 Approval of NASA justifications.

   Concurrences and approvals for justifications of contract actions conducted in accordance with FAR Subparts 6.2 and 6.3 shall be obtained as follows:

   (a) For proposed contracts over $650,000 but not exceeding $12,500,000 -

       (1) Concurring official: Procurement Officer

       (2) Approving official: Center or Headquarters Competition Advocate.

   (b)  For proposed contracts over $12,500,000 but not exceeding $85,500,000 -

       (1) Concurring officials:

            (i) Procurement Officer

            (ii) Center or Headquarters Competition Advocate

       (2) Approving official: Head of the contracting activity.

   (c) For proposed contracts over $85,500,000-

       (1) Concurring officials:

            (i) Procurement Officer

            (ii) Center or Headquarters Competition Advocate

            (iii) Head of the contracting activity.

            (iv) Agency Competition Advocate

       (2) Approving Official: Assistant Administrator for Procurement

   (d) The approval authority of FAR 6.304(a)(3) may not be delegated to other than the installation's Deputy Director.

   (e) For proposed contract actions requiring approval by the Assistant Administrator for Procurement, the original justification shall be forwarded to the Assistant Administrator for Procurement, Office of Procurement, Program Operations Division.

   (f) Regardless of dollar value, class justifications shall be approved by the Assistant Administrator for Procurement.

 

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Subpart 1819.71--NASA Rural Area Small Business Plan

 

1819.7101 Definition.

   "Rural area" means a county with a population of fewer than twenty thousand individuals.

 

1819.7102 General.

   Pursuant to Public Law 100-590, NASA established a Rural Area Business Enterprise Development Plan, including methods for encouraging prime and subcontractors to use small business concerns located in rural areas as subcontractors and suppliers.  One method is to encourage the contractor to use its best efforts to comply with the intent of the statute. 

 

1819.7103 Solicitation provision and contract clause.

   The contracting officer shall insert the clause at 1852.219-74, Use of Rural Area Small Businesses, in solicitations and contracts that offer subcontracting possibilities or that are expected to exceed $650,000 ($1,500,000 for construction of public facility) unless the contract, together with all its subcontracts, is to be performed entirely outside of any State, territory, or possession of the United States, the District of Columbia, the Commonwealth of Puerto Rico, and the Trust Territory of the Pacific Islands.