Procurement Information Circular
October 26, 2011
PROCUREMENT PLACEMENT CODES
PURPOSE: The purpose of this PIC is to revise the current version of the Procurement Placement Code (PPC) matrix.
REFERENCE: OMB Memorandum M-11-32, dated September 14, 2011, Accelerating Payments to Small Businesses for Goods and Services
BACKGROUND: The Director of the Office of Management and Budget (OMB) signed a memorandum on September 14, 2011, requiring Departments and Agencies to accelerate payments to small business contractors under the authority of the Prompt Payment Act. In an effort to minimize the impact on procurement, the use of the PPC has been determined to be the best means of providing the invoice payment offices with information on the size of contractors. The PPC matrix has been in place for many years as a tool for providing information regarding the extent competed, size and type of business, and solicitation procedures on procurements. Since NASA began reporting to FPDS-NG in 2005, the PPC has not been utilized in the same way, but it is still populated due to financial systems requirements (SAP). The information previously provided through the PPC is now available from FPDS-NG through a combination of fields. The PPC matrix is being remodeled based on the information needs of today.
GUIDANCE: Centers shall enter only one of the following two codes into CMM (PRISM) when making an award:
Procurement Placement Code (PPC):
Small Business* SB
Other than Small Business 99
*In order for a company to be a small business, they must have represented themselves as such for the NAICS code used on the procurement in the On-Line Representations and Certifications Application (ORCA) or there must be a paper-based Representations and Certifications in the contract file.
The PPC will remain the same throughout the duration of the contract unless a re-representation modification is done; if that occurs than the Contracting Officer shall change the PPC from SB to 99.
Contracting Officer’s Business Size Determination Field:
If the PPC used on the procurement is SB, then the Contracting Officer should code the Contracting Officer’s Business Size Determination field in CMM (PRISM)/FPDS-NG as “Small Business”. This applies to all awards that are made to small businesses.
If the PPC used on the procurement is 99, then the Contracting Officer should code the Contracting Officer’s Business Size Determination field in CMM (PRISM)/FPDS-NG as “Other than Small Business”. This applies to all awards made to entities that are not small businesses.
As a short-term solution for the OMB requirement on accelerating payments, SAP will be updated by the NASA Enterprise Applications Competency Center (NEACC) under the direction of the Office of the Chief Financial Officer and the Headquarters Office of Procurement with correct PPC information. At the time of award or the next modification, Contracting Officers should ensure that the PPC used on the award is correct. In addition, Contracting Officers must complete the CO’s Business Size Determination field in PRISM at time of award or modification. The CO’s Business Size Determination entered in CMM (PRISM) will be used in the long-term solution for an interface update and automation to the invoice payments screen in SAP.
EFECTIVE DATE: This PIC is effective as dated and shall remain in effect until cancelled or superseded.
HEADQUARTERS CONTACT: Beverly Smith, Analysis Division (202)358-0472, email: Beverly.Smith@nasa.gov.
Ronald A. Poussard
Director, Contract Management Division