04-15

Procurement Notice


June 7, 2006

ELIMINATION OF DOD DELEGATION ASSESSMENT REPORT

BACKGROUND:  This PN revises the NASA FAR Supplement to eliminate the requirement in 1842.102-70(b) for the semiannual report on the center assessment of DOD contract administration delegations.  Please note that while the standing report is eliminated, the semiannual assessment of DOD delegations is still required by 1842.102-70, but centers need only advise the Office of Procurement when significant changes are expected.

ACQUISITIONS AFFECTED BY CHANGES:  None.

ACTION REQUIRED BY CONTRACTING OFFICERS:  Discontinue submission of the report previously required by 1842.102-70(b).

CLAUSE CHANGES:  None.

PARTS AFFECTED:  Part 1842.

REPLACEMENT PAGES:  You may use the enclosed pages to replace 42:3 and 42:4 of the NFS.

TYPE OF RULE AND PUBLICATION DATE:  This change does not have a significant impact beyond the internal operating procedures of NASA and does not have a significant cost or administrative impact on contractors or offerors, and therefore does not require codification in the Code of Federal Regulations (CFR) or publication for public comment.

HEADQUARTERS CONTACT:  Lou Becker, Office of Procurement, Contract Management Division, (202) 358-04593, email: lou.becker@nasa.gov.

 

 

Tom Luedtke

Assistant Administrator for Procurement

 

Enclosures

 

DISTRIBUTION:

  PN List


  PART 1842

CONTRACT ADMINISTRATION AND AUDIT SERVICES

 

TABLE OF CONTENTS

 

SUBPART      1842.1             CONTRACT AUDIT SERVICES

1842.101                                 Contract audit responsibilities.

1842.102                                 Assignment of contract audit services.

1842.102-70                            Review of administration and audit services.

1842.170                                 Assignment of NASA personnel at contractor plants.

 

SUBPART      1842.2             CONTRACT ADMINISTRATION SERVICES

1842.202                                 Assignment of contract administration.

1842.202-70                            Retention of contract administration.

1842.270                                 Contracting officer technical representative (COTR) delegations.

1842.271                                 NASA clause.

 

SUBPART      1842.3             CONTRACT ADMINISTRATION OFFICE FUNCTIONS

1842.302                                 Contract administration functions.

 

SUBPART      1842.5             POSTAWARD ORIENTATION

1842.503                                 Postaward conferences.

 

SUBPART      1842.7             INDIRECT COST RATES

1842.705                                 Final indirect cost rates.

1842.705-1                              Contracting officer determination procedure.

1842.708                                 Quick-closeout procedure.

1842.708-70                            NASA Quick-closeout procedure.

 

SUBPART      1842.8             DISALLOWANCE OF COSTS

1842.803                                 Disallowing costs after incurrence.

 

SUBPART      1842.12           NOVATION AND CHANGE-OF-NAME AGREEMENTS

1842.1203                               Processing agreements.

1842.1203-70                          DOD processing of novation and change-of-name agreements on

                                                  behalf of NASA.

 

SUBPART      1842.13           SUSPENSION OF WORK, STOP-WORK ORDERS,                                                                                                                                            AND GOVERNMENT DELAY OF WORK

1842.1305                               Contract clauses.

 

SUBPART      1842.15           CONTRACTOR PERFORMANCE INFORMATION

1842.1501                               General.

1842.1502                               Policy.

1842.1503                               Procedures.

 

SUBPART      1842.70           ADDITIONAL NASA CONTRACT CLAUSES

1842.7001                               Observance of legal holidays.

1842.7002                               Travel outside of the United States.

1842.7003                               Emergency medical services and evacuation.

 

SUBPART      1842.71           SUBMISSION OF VOUCHERS

1842.7101                               Submission of vouchers.

 

SUBPART      1842.72           NASA CONTRACTOR FINANCIAL MANAGEMENT

                                                  REPORTING

1842.7201                               General.

1842.7202                               Contract clause.

 

SUBPART      1842.73           AUDIT TRACKING AND RESOLUTION

1842.7301                               NASA external audit follow-up system.

 

SUBPART      1842.74           EARNED VALUE MANAGEMENT

1842.7401                              Earned Value Management Systems (EVMS).

1842.7402                               Solicitation provisions and contract clauses.

 

 

PART 1842

CONTRACT ADMINISTRATION AND AUDIT SERVICES

Subpart 1842.1--Contract Audit Services

 

1842.101  Contract audit responsibilities. 

   (a)(i)  The Defense Contract Audit Agency (DCAA) has been designated as the DOD agency responsible for the performance of audit functions for NASA contracts, except those awarded to educational institutions for which other agencies have audit cognizance under OMB Circular No. A-133, those with Canadian contractors, and those for which NASA will perform audits.

       (ii) Cross-servicing arrangements are the responsibility of the Headquarters Office of External Relations (Code ID).  Contracting officers should direct questions to the Headquarters Office of Procurement (Code HK).

 

1842.102  Assignment of contract audit services.

 

1842.102-70  Review of administration and audit services. 

   NASA contracting activities shall assess their delegations to DOD semiannually to determine changes in delegation patterns that could result in significant changes in DOD manpower requirements or have other important impacts on DOD contract administration activities.  Events such as major program cutbacks or expansions, changes in locations of major programs, and sizable new acquisitions should be considered in the assessment.  Contracting activities shall advise the Headquarters Office of Procurement Contract Management Division when an assessment indicates a significant change in required DOD support.

 

1842.170  Assignment of NASA personnel at contractor plants.

   (a)(1)  NASA personnel normally shall not be assigned at or near a contractor's facility to perform any contract administration functions listed in FAR 42.302(a). Before such an assignment is made, a written request shall be forwarded to the cognizant program director for approval with the concurrence of the Assistant Administrator for Procurement (Code HS). The following supporting information shall be forwarded with the request to make the assignment:

             (i)    A statement of the special circumstances that necessitate the assignment.

            (ii)   The contract administration services to be performed.

            (iii)   A summary of any discussions held with the cognizant contract administration organization.

            (iv)  A staffing plan covering three years or such shorter period as may be appropriate.

       (2) The provisions of this paragraph do not apply to NASA audit personnel assigned to the field installations, to NASA technical personnel covered by 1842.101 and paragraph (b) of this section, unless they are performing any contract administration functions listed in FAR 42.302(a), or to personnel assigned to contractors' plants on NASA or other Federal installations.

   (b) NASA may assign technical personnel (such as quality assurance, reliability, or engineering representatives) to contractors' plants or laboratories to provide direct liaison with NASA and technical assistance and guidance to the contractor and DOD.  The duties and responsibilities of these technical representatives shall be clearly defined and shall not conflict with, duplicate, or overlap with functions delegated to DOD personnel. NASA shall advise appropriate DOD and contractor organizations of the duties and responsibilities of NASA technical personnel.

   (c) When a NASA resident office, including any assigned technical personnel, and a DOD contract administration office are performing contract administration functions for NASA contracts at the same contractor's facility, the two offices shall execute a written agreement clearly establishing the relationship between the two organizations and the contractor.  The agreement should eliminate duplication in the performance of contract administration functions and minimize procedural misunderstandings between the two organizations.  Such agreements shall be consistent with existing delegations to the contract administration offices concerned and shall specify the relationship of NASA nonprocurement resident personnel to their DOD and contractor counterparts if such personnel will be involved in any aspect of contract administration.

 

Subpart 1842.2--Contract Administration Services

 

1842.202  Assignment of contract administration. 

   (b) Withholding normal functions.

       (i) The following functions are normally retained by the contracting office.

            (A)  Approval of the final voucher (FAR 42.302(a)(7)).

            (B)  Countersigning NASA Form 456, Notice of Contract Costs Suspended and/or Disapproved (FAR 42.302(a)(8)).

            (C)  Issuance of decisions under the disputes clause (FAR 42.302(a)(10)).

            (D)  Contract payment (FAR 42.302(a)(13)).

            (E)  Execution of supplemental agreements involving spare parts or other items selected through provisioning procedures.  However, delegation of the negotiation of supplemental agreements for spare parts and other items and forwarding for approval and signature of the NASA contracting officer is permitted (FAR 42.302(a)(22)). 

            (F)   Execution of supplemental agreements definitizing change orders (see FAR 42.302(b)(1)).        

            (G)  Issuing termination notices and executing supplemental agreements for settlement of termination for default or for convenience of the Government.  However, delegation of the negotiation of termination settlements and forwarding for approval and signature of the NASA contracting officer is permitted using NASA Form 1432 (FAR 42.302(a)(23)).

            (H)  Consent to placement of subcontracts under FAR 42.302(a)(51).  (See 1844.202-1(a)).

(d) Transmittal and documentation.  In addition to the instructions at FAR 42.202(d)(1) through (4), contracting officers shall --

       (i) Send delegations to DOD contract administration offices in accordance with the instructions in the DOD Directory of Contract Administration Services Components (DLAH 4105.4).

       (ii) At time of contract award, prepare and forward NASA Form 1430, Letter of Contract Administration Delegation, General, to the contract administration office.  NASA Form 1430A, Letter of Contract Administration, Special Instructions, will supplement the NASA Form 1430, to modify previously delegated functions and provide additional or particular information considered necessary to ensure clear understanding of all delegated functions.

       (iii) Forward NASA Form 1431, Letter of Acceptance of Contract Administration, with each NASA Form 1430 or 1430A.  Contracting officers shall use the returned NASA Form 1431 as contract file documentation that the delegation has been accepted, modified or rejected by the contract administration office and as a reference for points of contact for each of the functional areas delegated.

       (iv) Use NASA Form 1433, Letter of Audit Delegation, to delegate the audit function and to amend previous delegations.  Distribute copies of the contract and NASA Form 1433 as follows:

            (A)  Audit office:  One copy of the contract and three NASA Forms 1433. When the Department of Health and Human Services is designated as the audit office, item 12 on NASA Form 1433 shall be marked "Not applicable."

            (B)  Contractor:  One NASA Form 1433.

            (C)  Cognizant NASA fiscal or financial management office:  One NASA Form 1433.

       (v) For contracts with the Canadian Commercial Corporation (CCC), audits are automatically arranged by the Department of Defense Production (Canada) (DDP) in accordance with agreements between NASA and DDP.  Audit reports are furnished to DDP.  Upon advice from DDP, CCC will certify the invoice and forward it with Standard Form 1034, Public Voucher, to the contracting officer for further processing and transmittal to the fiscal or financial management officer.