11-02
Procurement
Information Circular
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:
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.
*****************************************************************
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.