04-19

Procurement Notice


November 13, 2006

EARNED VALUE MANAGEMENT (EVM)

 

BACKGROUND:  This Procurement Notice (PN) revises the NASA FAR Supplement to reflect the interim rule published on November 13, 2006 in the Federal Register.  The interim rule implemented the FAR Earned Value Management (EVM) coverage published in Federal Acquisition Circular (FAC) 2005-11.  The FAC established a Federal-wide requirement for the use of EVM consistent with the EVM requirements set forth in OMB Circular A-11, Part 7, Capital Programming Guide (CPG) (see http://www.whitehouse.gov/OMB/circulars/a11/cpgtoc.html).  The FAC also established EVM coverage at Parts 34 and 52, including provisions and clauses.  The FAC allows agencies to develop their own EVM provisions and clauses that are substantially the same as those in the FAR.  Accordingly, this PN deletes the previous NASA EVM coverage at NFS 1842.74, along with the associated provisions and clauses, and instead provides NASA’s implementation of the new FAR coverage, including NASA’s versions of the FAR EVM provision and clause.  The FAR now requires EVM on all development contracts and subcontracts for major acquisitions, irrespective of contract type.  This PN also provides instructions on which NASA contracts are subject to this EVM requirement.

 

ACQUISITIONS AFFECTED BY CHANGES:  All applicable contracts and subcontracts for major acquisitions and other development and production contracts and subcontracts with values greater than $20 million.

 

ACTION REQUIRED BY CONTRACTING OFFICERS:  Use the NFS EVM provision and clause instead of those prescribed for use in FAR 34.203.

 

PROVISION AND CLAUSE CHANGES:  1.  Deletions:  This PN deletes the following: 1852.242-74, Notice of Earned Value Management System; 1852.242-75, Earned Value Management System; 1852.242-76, Modified Cost Performance Report; and 1852.242-77, Modified Cost Performance Report Plans.  2.  Additions.  This PN adds the following:  1852.234-1, Notice of Earned Value Management System; 1852.234-2, Earned Value Management System, and its Alternate I.

 

PARTS AFFECTED:  Part 1834, 1842, and 1852.

 

REPLACEMENT PAGES:  You may use the enclosed pages to replace Part 1834, Part 1842, 52:3, 52:4, 52:75, 52:76, 52:77, 52:78, 52:79, 52:80, 52:81, 52:82, 52:83, 52:84, 52:84.1, 52:84.2(added), 52:84.3 (added), 52:84.4 (added), 52:91 thru 52:97, and 52-119 thru 52-122 of the NFS.

 

TYPE OF RULE AND PUBLICATION DATE:  The PN was published as an interim rule in the Federal Register (71 FR 66120-66122) on November 13, 2006.

 

CANCELLATION:  PIC 06-06, Interim Instructions for Implementing Earned Value Management on NASA Contracts, is hereby cancelled.

 

HEADQUARTERS CONTACT:  Ken Sateriale, Office of Procurement, Contract Management Division, (202) 358-0491, email: ken.sateriale@nasa.gov

 

 

Tom Luedtke

Assistant Administrator for Procurement

 

Enclosures

 

DISTRIBUTION LIST:

  PN List 


PART 1834

MAJOR SYSTEM ACQUISITION

 

TABLE OF CONTENTS

 

SUBPART     1834.0              GENERAL

1834.003                                 Responsibilities.

 

SUBPART      1834.2             EARNED VALUE MANAGEMENT SYSTEM

1834.201                                 Policy.

1834.202                                 Integrated baseline reviews.

1834.203                                 Solicitation provisions and contract clause.

1834.203-70                            NASA solicitation provision and contract clause.

 

 

PART 1834

MAJOR SYSTEM ACQUISITION

 

Subpart 1834.0--General

 

1834.003    Responsibilities. 

   (a)  NASA's implementation of OMB Circular No. A-109, Major Systems Acquisition, and FAR Part 34 is contained in this Part and in NASA Policy Directive (NPD) 7120.4, "Program/Project Management," and NASA Procedures and Guidelines (NPG) 7120.5, "NASA Program and Project Management Processes and Requirements".

 

Subpart 1834.2--Earned Value Management System

1834.201 Policy.

  (a) Application of an Earned Value Management System (EVMS) is required for all acquisitions for development designated as major in accordance with OMB Circular A-11, and for development or production contracts and subcontracts, including those for flight and ground support requirements, and institutional requirements (facility, IT investment, etc.) as follows:

(i) For contracts and subcontracts valued at $20M or more, and contracts and subcontracts for major acquisitions valued at less than $20M, the EVMS shall comply with the guidelines in the ANSI/EIA-748 Standard.

(ii) For contracts and subcontracts valued at $50M or more, the contractor shall have an EVMS that has been formally validated and accepted by the Government.

(iii) For contracts and subcontracts for other than major acquisitions valued at less than $20M, earned value management application is optional and is a risk-based decision that is at the discretion of the program/project manager. 

(iv) EVM is not required on contracts for non-developmental engineering support services, steady state operations, basic and applied research, and routine services such as janitorial services or grounds maintenance services.  In these cases, application of EVM is at the discretion of the program/project manager.

  (e)  Contracting officers shall request the assistance of the cognizant Defense Contract Management Agency (DCMA) office in determining the adequacy of proposed EVMS plans.

 

1834.202 Integrated baseline reviews.

  (d)  Use of pre-award IBRs is limited to the second or subsequent phases of a phased acquisition (see 1817.73).  When a pre-award IBR is contemplated, the contracting officer shall include the instructions with respect to the schedule and conduct of the IBR in the proposal request.

 

1834.203 Solicitation provisions and contract clause.

  The FAR EVMS solicitation provisions and contract clause are not used in NASA contracts.  See 1834.203-70 for the NASA EVMS solicitation provision and contract clause.

 

1834.203-70  NASA solicitation provision and contract clause.
   Except for the contracts identified in 1834.201(a)(iv), the contracting officer shall insert –

      (a) The provision at 1852.234-1, Notice of Earned Value Management System, in solicitations for contracts for --

            (1) Development or production, including flight and ground support projects, and institutional projects (facility, IT investment, etc.), with a value exceeding $20M; and

            (2) Acquisitions of any value designated as major by the project manager in accordance with OMB Circular A-11; and

      (b) The clause at 1852.234-2, Earned Value Management System, in solicitations and contracts with a value exceeding $50M that include the provision at 1852.234-1.  The contracting officer shall use the clause with its Alternate I when the contract value is less than $50M.



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.

 

 

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.

       (vi) For contracts placed directly with Canadian firms, audits are requested by the contracting officer from the Audit Services Branch, Comptroller of the Treasury, Department of Finance, Ottawa, Ontario, Canada. Invoices are approved by the auditor on a provisional basis pending completion of the contract and final audit. These invoices, accompanied by SF 1034, are forwarded to the contracting officer for further processing and transmittal to the fiscal or financial management officer. Periodic advisory audit reports are furnished directly to the contracting officer.

 

1842.202-70  Retention of contract administration. 

   (a) The assignment of contract administration is optional for the following contracts:

       (1) Research and development study contracts not involving deliverable hardware or Government furnished property.

       (2) Contracts with delivery schedules of 90 days or less.

       (3) Purchase orders without Government source inspection requirements.

       (4) Contracts requiring only on-site performance.

       (5) Contracts requiring work in the vicinity of the awarding center where DOD contract administration services are not reasonably available.

 

1842.270  Contracting officer technical representative (COTR) delegations. 

   (a) The cognizant contracting officer may appoint a qualified Government employee to act as their representative in managing the technical aspects of a particular contract.  If necessary, the contracting officer may appoint an alternate COTR to act during short absences of the COTR.  Technical organizations are responsible for ensuring that the individual they recommend to the contracting officer possesses training, qualifications and experience commensurate with the duties and responsibilities to be delegated and the nature of the contract.

   (b)     NASA Form 1634, Contracting Officer Technical Representative (COTR) Delegation, shall be used to appoint COTRs.  A COTR’s duties and responsibilities may not be redelegated by the COTR and the COTR may be held personally liable for unauthorized acts.  However, this does not prohibit the COTR from receiving assistance for the purpose of monitoring contractor progress and gathering information.  When an individual is appointed as a COTR on more than one contract, separate delegations shall be issued for each contract.  A separate NASA Form 1634 will be used to appoint an alternate COTR.

   (c) A COTR delegation remains in effect throughout the life of the contract unless canceled in writing by the cognizant contracting officer or at any level above that contracting officer.  The contracting officer may modify the delegation only by issuance of a new delegation canceling and superseding the existing delegation.

   (d) A COTR shall not be authorized to initiate procurement actions or in any way cause a change to the contract or increase the Government's financial obligations.  However, delegations may be made to construction contract COTRs to sign emergency on-site change orders with an estimated value not to exceed the value specified in writing by the contracting officer in the NASA Form 1634 but in no event to exceed $25,000.

   (e) Each COTR shall acknowledge receipt and accept the delegation by signing the original delegation letter.  The original of the COTR delegation letter shall be filed in the applicable contract file.  Copies of the signed COTR delegation letter shall be distributed to the COTR, the contractor, and each cognizant contract administration office.  Acknowledgment and distribution for terminations of COTR delegations and COTR delegations which revise authority, duties and responsibilities shall follow the same rules.

   (f)(1)  Mandatory training for COTRs and their alternates shall include the following core topic areas:

            (i) Contracting authority and contract modifications (including non-personal services and inherently governmental functions);

            (ii)   Inspection and surveillance;

            (iii)   Changes and performance-based acquisition;

            (iv)  Contract financial and property management (including "Limitation of Cost" clause, Anti-Deficiency Act, "Limitation of Funds" clause); and

            (v)   Disputes.

       (2) Those COTRs for whom it has been more than five (5) years since they received comprehensive training shall receive refresher training.

       (3) Procurement officers are responsible for assuring that the course(s) utilized by their center address the mandatory core topics in sufficient detail for the purpose of COTR training.  Procurement officers may accept the following training alternative(s) in satisfaction of comparable requirement(s) specified in paragraph (f)(1) of this section:

            (i) Another center's COTR training; or

            (ii)   Annual ethics training.

   (g) The contracting officer shall verify that the COTR has received the mandatory training before signing NASA Form 1634.  If an urgent need arises for the appointment of a COTR and no trained and otherwise qualified individual is available, then the procurement officer may make a temporary COTR appointment not to exceed six months.  Temporary appointments must be so identified and clearly reflect the appointment expiration date.

   (h) No technical direction may be issued by a COTR relative to performance-based acquisition requirements or when serving under a temporary appointment.

 

1842.271  NASA clause.

   Insert the clause at 1852.242-70, Technical Direction, when paragraph 3(m) of the NASA Form 1634 specifically authorizes a COTR to issue technical direction.

 

Subpart 1842.3--Contract Administration Office Functions

 

1842.302  Contract administration functions. 

   (a) In addition to the responsibilities listed in FAR 42.302(a), responsibility for reviewing earned value management system (EVMS) plans and verifying initial and continuing contractor compliance with NASA and DoD EVMS criteria and conformity with ANSI/EIA Standard 748, Industry Guidelines for EVMS, is normally delegated to DCMA.

 

Subpart 1842.5--Postaward Orientation

1842.503  Postaward conferences. 

   (1) A postaward conference shall be held with representatives of the contract administration office when --

       (i) A contract is expected to exceed $10,000,000; 

       (ii) Contract performance is required at or near a NASA installation or NASA-controlled launch site;

       (iii) The delegation will impose an abnormal demand on the resources of the contract administration office receiving the delegation; or

       (iv) Complex contract management problems are expected, particularly risk management areas identified during program and acquisition planning, e.g., significant or unusual mission success, technical, cost, schedule, safety, security, occupational health, environmental protection, and export control risks.

   (2) Procurement officer approval is required to waive a post-award planning conference for contracts  meeting any of the criteria in paragraph (1) of this section.  The request for procurement  officer approval to waive a post-award conference shall address action taken and planned to ensure effective communication with the contract administration office during the performance of the contract.

 

Subpart 1842.7--Indirect Cost Rates

 

1842.705  Final indirect cost rates.

 

1842.705-1  Contracting officer determination procedure.

   (b)     Procedures

       (3)(i) When NASA is not the cognizant Federal agency, NASA should participate with the cognizant contracting officer (or cognizant Federal agency official) in the final indirect cost rate determination procedure where the issues involved would have a significant financial impact on the agency.  The NASA participant should be a representative from that installation providing the preponderance of NASA funding.  If a determination is made that NASA’s participation is not warranted, that decision must be communicated to the cognizant contracting officer (or cognizant Federal agency official).

            (ii) When NASA is the cognizant Federal agency, settlement of indirect costs should be conducted by the cognizant NASA contracting officer (normally from the installation providing the preponderance of NASA funding).

 

1842.708  Quick-closeout procedure.  

   (a)(2)(ii) The 15 percent parameter does not apply to NASA contracts.  Instead, perform a risk analysis that takes into consideration the contractor systems identified in FAR 42.708(a)(2)(ii), as well as the concerns of the cognizant contract auditor, and any other pertinent information. 

 

1842.708-70  NASA Quick-closeout procedures.

   After a decision is made that the use of quick closeout is appropriate, the contracting officer shall:

   (a) Obtain a written agreement from the contractor to participate in the quick-closeout process under FAR 42.708 for the selected contract(s).

   (b) Require the contractor to submit a final voucher and a summary of all costs by cost element and fiscal year for the contract(s) in question, as well as a copy of the contractor's final indirect cost rate proposal for each fiscal year quick closeout is involved.

   (c) Notify the cognizant audit activity in writing, identify the contract(s), and request:  (1) the contractor's indirect cost history covering a sufficient number of fiscal years to see the trend of claimed, audit questioned, and disallowed costs; and (2) any other information that could impact the decision to use quick-closeout procedures.  Indirect cost histories should be requested from the contractor only when the cognizant audit activity is unable to provide the information.

   (d) Review the contract(s) for indirect cost rate ceilings and any other contract limitations, as well as the rate history information.

   (e) Establish final indirect cost rates using one of the following rates:

       (1) The contract's ceiling indirect cost rates, if applicable, and if less than paragraphs (e)(2) through (6) of this section.

       (2) The contractor's claimed actual rates adjusted based on the contractor's indirect cost history, if less than paragraphs (e)(3) through (6) of this section.

       (3) Recommended rates from the cognizant audit agency, the local pricing office, another installation pricing office, or other recognized knowledgeable source.

       (4) The contractor's negotiated billing rates, if less than paragraphs (e)(5) or (6) of this section.

       (5) The previous year's final rates.

       (6) Final rates for another fiscal year closest to the period for which quick-closeout rates are being established.

   (f) If an agreement is reached with the contractor, obtain a release of all claims and other applicable closing documents.

   (g) For those contracts where the indirect cost rate negotiation function was delegated or falls under the cognizance of another agency, send a copy of the agreement to that office.

 

Subpart 1842.8--Disallowance of Costs

 

1842.803  Disallowing costs after incurrence. 

(b)  Auditor receipt of vouchers.

       (1) NASA has designated the contract auditor as the contracting officer's representative for --

            (A)  Reviewing vouchers received directly from contractors;

            (B)  Approving vouchers for provisional payment and sending them to the disbursing office;

            (C)  Reviewing completion/final vouchers and sending them to the designated contracting officer for approval.

            (D)  Authorizing direct submission of interim vouchers for provisional payment to disbursing offices for contractors with approved billing systems.

       (2)(A)  When contract costs are questioned, the auditor shall prepare and send to the cognizant contracting officer NASA Form 456, Notice of Contract Costs Suspended and/or Disapproved.

            (B)  After coordination with other NASA and federal agency contracting officers administering contracts with the same contractor under which a NASA Form 456 or a DCAA Form 1 has been issued for the same items of cost, the NASA contracting officer shall take one of the following actions:

                   (a) Assign a notice number and sign the NASA Form 456.

                   (b) Issue a new NASA Form 456 suspending the costs rather than disapproving them pending resolution of the issues.

                   (c) Return the unsigned NASA Form 456 to the auditor with a detailed explanation of why the suspension or disapproval is not being signed, and process the contractor's claim for payment.

            (C)  When more than one NASA contract is affected by a notice, the NASA contracting officer with the largest amount of contract dollars affected is responsible for coordination of the NASA Form 456 with the other contracting officers, including those of other federal agencies, listed in the notice.

            (D)  An original and three copies (which includes two acknowledgment copies, one each for return to the contracting officer and the auditor) of the NASA Form 456 shall be sent to the contractor by certified mail, return receipt requested; one copy shall be attached to the Standard Form 1034 and each copy of the Standard Form 1034A on which the deduction for the suspension/disapproval is made.

            (E)(a)   If the amount of the deduction is more than the amount of the public voucher, the installment method of deduction shall be applied to the current and subsequent public vouchers until the amount is fully liquidated.  The deductions on any voucher may not exceed the voucher amount to avoid processing of a voucher in a credit amount.  Public voucher(s) with zero amounts must be forwarded to the fiscal or financial management office for appropriate action.

                   (b) If deductions are in excess of contractor claims, recovery may be made through a direct refund from the contractor, in the form of a check payable to NASA, or by a set-off deduction from the voucher(s) submitted by the contractor under any other contract, unless those contracts contain a "no set-off" provision.  If a set-off is affected, the voucher(s) from which the deduction is made should be annotated to identify the contract and appropriation affected and the applicable NASA Form 456.

 

Subpart 1842.12--Novation and Change-of-Name Agreements

 

1842.1203  Processing agreements. 

   (b)     The installation shall immediately notify the Headquarters Office of Procurement (Code HS) of the request to execute a novation (successor-in-interest) or change-of-name agreement.

   (h) The contracting officer shall forward one copy of the agreement to Code HS.

 

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

   (a) Copies of novation and change-of-name agreements executed by DOD on behalf of NASA are maintained by the Headquarters Office of Procurement (Code HS).

   (b)     Code HS is the Agency point of contact for issues related to proposed novation agreements.  With the concurrence of Code HS, an installation may execute a separate agreement with the contractor.

 

Subpart 1842.13--Suspension of Work, Stop-Work Orders, and Government Delay

of Work

 

1842.1305  Contract clauses.

   (b) FAR 52.242-15, Stop-Work Order, shall not be used in solicitations or contracts for research performed by educational or other nonprofit institutions.

 

Subpart 1842.14--Traffic and Transportation Management

 

1842.1405  Discrepancies incident to shipment  of supplies. 

   (a) NASA personnel shall also report discrepancies and adjust claims for loss of and damage to Government property in transit in accordance with NPR 6200.1, NASA Transportation and General Traffic Management.

 

Subpart 1842.15--Contractor Performance Information

 

1842.1501  General.

   Communications with contractors are vital to improved performance and this is NASA’s primary objective in evaluating past performance. Other objectives include providing data for future source selections. While the evaluations must reflect both shortcomings and achievements during performance, they should also elicit from the contractors their views on impediments to improved performance emanating from the Government or other sources.

 

1842.1502  Policy.   

   (a) Within 60 days of every anniversary of the award of a contract having a term exceeding one year, contracting officers must conduct interim evaluations of performance on contracts subject to FAR Subpart 42.15 and this subpart.  Interim evaluations are not required on contracts whose award anniversary is within 3 months of the end of the contract period of performance.  The final evaluation will include an evaluation of the period between the last interim evaluation and the end of the contract period of performance.  Interim performance evaluations are optional for SBIR/STTR Phase II contracts.  A final evaluation summarizing all performance must be conducted on all contracts.

 

1842.1503  Procedures.    

   (a) The contracting officer shall determine who (e.g., the technical office or end users of the products or services) evaluates appropriate portions of the contractor’s performance.  The evaluations are subjective in nature.  Nonetheless, the contracting officer, who has responsibility

for the evaluations, shall ensure that they are reasonable.

   (b) NASA Form 1680, entitled, "Evaluation of Performance," shall be used to document evaluations.  This provides for a five-tiered rating (using the definitions for award fee evaluation scoring found in 1816.405-275) covering the following attributes: quality, timeliness, price or control of costs (not required for firm-fixed-price contracts or firm-fixed-price contracts with economic price adjustment), and other considerations.  Evaluations used in determining award fee payments satisfy the requirements of this subpart and do not require completion of NASA Form 1680.  In addition, hybrid contracts containing both award fee and non-award fee portions do not require completion of NASA Form 1680.  Contracting Officers shall ensure that the Government discusses all evaluations with contractors and shall record the date and the participants on the evaluation form.  Contracting officers shall sign and date the evaluation after considering any comments received from the contractor within 30 days of the contractor’s receipt of the evaluation.  If a contractor in its timely comments disagrees with an evaluation and requests a review at a level above the contracting officer, it shall be provided within 30 days.  While the FAR forbids use of the evaluations for source selections more than three years after contract completion, they shall nevertheless be retained in the contract file as provided in FAR 4.8, Government Contract Files.

 

Subpart 1842.70--Additional NASA Contract Clauses

 

1842.7001  Observance of legal holidays.   

   (a) The contracting officer shall insert the clause at 1852.242-72, Observance of Legal Holidays, in contracts when work will be performed at a NASA installation.

   (b)     The clause shall be used with its Alternate I in cost-reimbursement contracts when it is desired that contractor employees not have access to the installation during Government holidays.  This alternate may be appropriately modified for fixed-price contracts.

   (c) The clause may be used with its Alternate II in cost-reimbursement contracts when it is desired that administrative leave be granted contractor personnel in special circumstances, such as inclement weather or potentially hazardous conditions.  This alternate may be appropriately modified for fixed-price contracts.

 

1842.7002  Travel  outside of the United States.

   The contracting officer shall insert the clause at 1852.242-71, Travel Outside of the United States, in cost-reimbursement solicitations and contracts where a contractor may travel outside of the United States and it is appropriate to require Government approval of the travel.

 

1842.7003  Emergency medical services and evacuation.

   The contracting officer must insert the clause at 1852.242-78, Emergency Medical Services and Evacuation, in all solicitations and contracts when employees of the contractor are required to travel outside the United States or to remote locations in the United States.

 

Subpart 1842.71--Submission of Vouchers

 

1842.7101  Submission of vouchers. 

   (a) Vouchers shall be submitted in accordance with the clause at 1852.216-87, Submission of Vouchers for Payment.

   (b) The auditor shall retain an unpaid copy of the voucher.

   (c) When a voucher submitted in accordance with the clause at 1852.216-87 contains one or more individual direct freight charges of $100 or more, an additional copy of Standard Form 1034A and Standard Form 1035A shall be submitted and marked for return to the contractor after payment.  This copy shall be transmitted quarterly by the contractor with the freight bills to the General Services Administration. When a voucher is identified as the "Completion Voucher," an additional copy shall be submitted for transmittal to the NASA contracting officer.

 

Subpart 1842.72--NASA Contractor Financial Management Reporting

 

1842.7201  General. 

   (a) Contracting officer responsibilities.

       (1) Contracting officers must ensure contracts require cost reporting consistent with both policy requirements and project needs.  Contracting Officers shall monitor contractor cost reports on a regular basis to ensure cost data reported is accurate and timely.  Adverse trends or discrepancies discovered in cost reports should be pursued through discussions with financial and project team members.

       (2) Whenever cost performance threatens contract performance, contracting officers shall require corrective action plans from the contractors.

   (b) Reporting requirements.

       (1) Use of the NASA Contractor Financial Management Reports, the NASA Form 533 series, is required on cost-type, price redetermination, and fixed-price incentive contracts when the following dollar, period of performance, and scope criteria are met:

 

Contract value/scope

Period of Performance

  533M

  533Q

$500K to $999K

1 year or more

Required  

Optional

$1,000,000 and over

Less than 1 year

Required

Optional

$1,000,000 and over

1 year or more

Required  

Required

 

       (2) When it is probable that a contract will ultimately meet the criteria in paragraph (b)(1) of this section through change orders, supplemental agreements, etc., the reporting requirement must be implemented in the contract based on the estimated final contract value at the time of award.

       (3) NF 533Q reporting may be waived by the contracting officer, with the concurrence of the center chief financial officer and cognizant project manager, for support service or task order contracts, when NF 533M reports and other data are sufficient to ensure accurate monthly cost accruals, evaluation of the contractor’s cost performance, and forecasting of resource requirements.

       (4) Where a specific contractual requirement differs from the standard system set forth in NPR 9501.2, NASA Contractor Financial Management Reporting, but is determined to be in the best interests of the Government and does not eliminate any of the data elements required by the standard NF 533 formats, it may be approved by the contracting officer with the concurrence of the center chief financial officer and the project manager.  Such approval shall be documented and retained, with the supporting rationale, in the contract file.

       (5) The contractor's internal automated printout reports may be substituted for the 533 reporting formats only if the substitute reports contain all the data elements that would be provided by the corresponding 533's.  The contracting officer shall coordinate any proposed substitute with the installation financial management office.

   (c) Contract requirements.

       (1) Reporting requirements, including a description of reporting categories, shall be detailed in the procurement request, and reports shall be required by inclusion of the clause prescribed in 1842.7202.  The contract schedule shall include report addressees and numbers of copies.  Reporting categories shall be coordinated with the center financial management office to ensure that data required for agency cost accounting will be provided by the reports.  Reporting dates shall be in accordance with NPR 9501.2, except that earlier submission is encouraged whenever feasible. No due date shall be permitted which is later than the date by which the center financial management office needs the data to enter an accurate monthly cost accrual in the accounting system.

       (2) The contractor shall be required to submit an initial report in the NF 533Q format, time phased for the expected life of the contract, within 30 days after authorization to proceed has been granted.  NF 533M reporting will begin no later than 30 days after incurrence of cost.  NF 533Q reporting begins with the initial report.      

 

1842.7202  Contract clause.

   The contracting officer shall insert the clause at 1852.242-73, NASA Contractor Financial Management Reporting, in solicitations and contracts when any of the NASA Form 533 series of reports is required from the contractor.

 

Subpart 1842.73--Audit Tracking and Resolution

 

1842.7301  NASA external audit follow-up system.

   (a) This section implements OMB Circular No. A-50 and NASA Policy Directive (NPD) 1200.10  “Internal Management Controls and Audit Liaison and Followup”, which provide more detailed guidance.  Recommendations from external audits (OMB Circular No. A-133, Audits of States, Local Governments, and Non-Profit Institutions) shall be resolved by formal review and approval procedures analogous to those at 1815.406-171.

   (b) The external audit followup system tracks all contract and OMB Circular No. A-133 audits where NASA has resolution and disposition authority.  The objective of the tracking system is to ensure that audit recommendations are resolved within 6 months after receipt of the audit report and corrected as expeditiously as possible.

   (c)(1) The identification and tracking of contract audit reports under NASA cognizance are accomplished in cooperation with the DCAA.

       (2) Identification and tracking of OMB Circular No. A-133 audit reports are accomplished in cooperation with the NASA Office of the Inspector General (OIG).

   (d)(1) All reportable contract audit reports as defined by Chapter 15, Section 6, of the DCAA Contract Audit Manual (CAM) shall be reported quarterly to the Headquarters Office of Procurement (Code HK); and

       (2) Only OMB Circular No. A-133 audit reports involving the following shall be reported quarterly to Code HK:

            (i)    A significant management control issue; or

            (ii)   Questioned costs of $10,000 or more due to an audit finding (see Subpart E-Auditor, paragraph 510 of OMB Circular No. A-133).

       (3) NASA contracting officers will maintain a dialogue with DOD Administrative Contracting Officers (ACO) who have been delegated activities on NASA contracts.  A review will be conducted no less frequently than semiannually, and the status and disposition of significant audit findings will be documented in the contract file.  During this review, NASA contracting officers should discuss with the ACO both prime and subcontract audit reports that have been delegated to DOD.  Should these reports contain any findings or recommendations, the NASA contracting officer should obtain their status and document the contract file accordingly.

   (e)(1) The terms “resolution” and “corrective action/disposition” are defined as follows:

            (i)    Resolution - The point at which the IG and Management agree on the action to be taken on audit report findings and recommendations.

            (ii)   Corrective action/disposition - Management action responsive to an agreed upon audit recommendation.

       (2) The resolution and disposition of OMB Circular No. A-133 audits are handled as follows:

            (i)    Audit findings pertaining to an individual NASA award are the responsibility of the procurement officer administering that award.

            (ii)   Audit findings having a Governmentwide impact are the responsibility of the cognizant Federal agency responsible for oversight.  For organizations subject to OMB Circular No. A-133, there is either a cognizant agency or an oversight agency.  The cognizant agency is the Federal agency that provides the predominant amount of direct funding to the recipient organization unless OMB makes a specific cognizant agency for audit assignment.  To provide for the continuity of cognizance, the determination of the predominant amount of direct funding will be based on the direct Federal awards expended in the recipient’s fiscal years ending in 1995, 2000, 2005, and every fifth year thereafter.  When there is no direct funding, the Federal agency with the predominant indirect funding is to assume the oversight responsibilities.  In cases where NASA is the cognizant or oversight Federal agency, audit resolution and disposition is the responsibility of the procurement officer for the Center having the largest amount of direct funding, or, if there is no direct funding, the largest amount of indirect funding for the audited period.  A copy of the memorandum dispositioning the findings shall be provided by each Center having resolution responsibility for the particular report to the Headquarters OIG office and Code HK.



1852.228-75                                     Minimum Insurance Coverage.

1852.228-76                                     Cross-Waiver of Liability for Space Station Activities.

1852.228-78                                     Cross-Waiver of Liability for NASA Expendable Launch

                                                            Vehicle Launches.

1852.228-80                                     Insurance — Immunity From Tort Liability.

1852.228-81                                     Insurance — Partial Immunity From Tort Liability.

1852.228-82                                     Insurance — Total Immunity From Tort Liability.

1852.231-70                                     Precontract Costs.

1852.231-71                                     Determination of Compensation Reasonableness.

1852.232-70                                     NASA Modification of FAR 52.232-12.

1852.232-77                                     Limitation of Funds (Fixed-Price Contract).

1852.232-79                                     Payment for On-Site Preparatory Costs.

1852.232-81                                     Contract Funding.

1852.232-82                                     Submission of Requests for Progress Payments.

1852.233-70                                     Protests to NASA.

1852.234-1                                       Notice of Earned Value Management System.

1852.234-2                                       Earned Value Management System.

1852.235-70                                     Center for AeroSpace Information Technical Reports.

1852.235-71                                     Key Personnel and Facilities.

1852.235-72                                     Instructions for Responding to NASA Research

                                                            Announcements.

1852.235-73                                     Final Scientific and Technical Reports.

1852.235-74                                     Additional Reports of Work -- Research and Development.

1852.236-71                                     Additive or Deductive Items.

1852.236-72                                     Bids with Unit Prices.

1852.236-73                                     Hurricane Plan.

1852.236-74                                     Magnitude of Requirement.

1852.236-75                                     Partnering for Construction Contracts.

1852.237-70                                     Emergency Evacuation Procedures.

1852.237-71                                     Pension Portability.

1852.237-72                                     Access to Sensitive Information. 

1852.237-73                                     Release of Sensitive Information.

1852.239-70                                     Alternate Delivery Points.

1852.241-70                                     Renewal of Contract.

1852.242-70                                     Technical Direction.

1852.242-71                                     Travel Outside of the United States.

1852.242-72                                     Observance of Legal Holidays.

1852.242-73                                     NASA Contractor Financial Management Reporting.

1852.242-78                                     Emergency Medical Services and Evacuation.

1852.243-70                                     Engineering Change Proposals.

1852.243-71                                     Shared Savings.

1852.243-72                                     Equitable Adjustments.

1852.244-70                                     Geographic Participation in the Aerospace Program.

1852.245-70                                     Contractor Requests for Government-Owned Equipment.

1852.245-71                                     Installation-Accountable Government Property.

1852.245-72                                     Liability for Government Property Furnished for Repair or

  Other Services.

1852.245-73                                     Financial Reporting of NASA Property in the Custody of

                                                            Contractors.

1852.245-74                                     Contractor Accountable On-Site Government Property.

1852.245-75                                     Title to Equipment.

1852.245-76                                     List of Government-Furnished Property.

1852.245-77                                     List of Installation-Accountable Property and Services.

1852.245-79                                     Use of Government-Owned Property.

1852.245-80                                     Use of Government Production and Research Property on a No-Charge Basis.

1852.246-70                                     Mission Critical Space System Personnel Reliability  

                                                             Program.

1852.246-71                                     Government Contract Quality Assurance.

1852.246-72                                     Material Inspection and Receiving Report.

1852.246-73                                     Human Space Flight Item.

1852.247-71                                     Protection of the Florida Manatee.

1852.247-72                                     Advance Notice of Shipment.

1852.247-73                                     Bills of Lading.

1852.249-72                                     Termination (Utilities).

 

SUBPART               1852.3             PROVISION AND CLAUSE MATRIX

1852.300                                           Scope of Subpart.

1852.301                                           Solicitation Provisions and Contract Clauses (Matrix).

 

 

PART 1852

                         SOLICITATION PROVISIONS AND CONTRACT CLAUSES

 

1852.000 Scope of part.

  This part, in conjunction with FAR Part 52, (a) sets forth the provisions and clauses prescribed in the NFS, (b) gives instructions for their use, and (c) presents a matrix listing the provisions and clauses applicable to each principal contract type and/or purpose (e.g., fixed-price supply, cost-reimbursement research and development).

 

                           Subpart 1852.1--Instructions for Using Provisions and Clauses

 

1852.101 Using Part 52.

  (b)(2)(i)(B) NASA contracting offices prescribing or developing clauses shall ensure that the requirements of Subpart 1801.3 are met.

  (e)(1) The NFS matrix in Subpart 1852.3 is formatted similarly to that in the FAR.  The first page of the NFS matrix contains a key to column headings, a dollar threshold chart, and requirement symbols.  To fully determine the applicability of a provision or clause in the "required-when-applicable" and "optional" categories, Contracting Officers shall refer to the NFS text (cited in the matrix) that prescribes its use.



   (a)  For purposes of payment of cost, exclusive of fee, in accordance with the Limitation of Funds clause, the total amount allotted by the Government to this contract is $         .  This allotment is for [Insert applicable item number(s), task(s), or work description]            and covers the following estimated period of performance:           .

   (b)  An additional amount of $         is obligated under this contract for payment of fee.

(End of clause)

 

1852.232-82 Submission of Requests for Progress Payments.

  As prescribed in 1832.502-470, insert the following clause:

SUBMISSION OF REQUESTS FOR PROGRESS PAYMENTS

(MARCH 1989)

  The Contractor shall request progress payments in accordance with the Progress Payments clause by submitting to the Contracting Officer an original and two copies of Standard Form (SF) 1443, Contractor's Request for Progress Payment, and the contractor's invoice (if applicable).  The Contracting Officer's office is the designated billing office for progress payments for purposes of the Prompt Payment clause.

 (End of clause)

 

1852.233-70  Protests to NASA.

   As prescribed in 1833.106-70, insert the following provision:

PROTESTS TO NASA

(OCTOBER 2002)

  Potential bidders or offerors may submit a protest under 48 CFR Part 33 (FAR Part 33) directly to the Contracting Officer. As an alternative to the Contracting Officer's consideration of a protest, a potential bidder or offeror may submit the protest to the Assistant Administrator for Procurement, who will serve as or designate the official responsible for conducting an independent review.  Protests requesting an independent review shall be addressed to Assistant Administrator for Procurement, NASA Code H, Washington, DC 20546-0001.

(End of provision)

 

1852.234-1 Notice of Earned Value Management System.

As prescribed in 1834.203-70(a), insert the following provision:

NOTICE OF EARNED VALUE MANAGEMENT SYSTEM
(NOVEMBER 2006)

  (a) The offeror shall provide documentation that its proposed Earned Value Management System (EVMS) complies with the EVMS guidelines in the American National Standards Institute (ANSI)/Electronic Industries Alliance (EIA)-748 Standard, Earned Value Management Systems.

  (b) If the offeror proposes to use a system that currently does not meet the requirements of paragraph (a) of this provision, the offeror shall submit its comprehensive plan for compliance with the EVMS guidelines to the Government for approval.

              (1) The plan shall—

                     (i)   Describe the EVMS the offeror intends to use in performance of the contract;

      (ii)  Distinguish between the offeror's existing management system and modifications proposed to meet the EVMS guidelines in ANSI/EIA-748;

      (iii) Describe the management system and its application in terms of the EVMS guidelines;

     (iv) Describe the proposed procedure for application of the EVMS requirements to subcontractors;

     (v)  Describe how the offeror will ensure EVMS compliance for each subcontractor subject to the flowdown requirement in paragraph (c) whose EVMS has not been recognized by the Cognizant Federal Agency as compliant according to paragraph (a);

     (vi) Provide documentation describing the process and results, including Government participation, of any third-party or self-evaluation of the system’s compliance with the EVMS guidelines; and

     (vii)  If the value of the offeror’s proposal, including options, is $50 million or more, provide a schedule of events leading up to formal validation and Government acceptance of the Contractor’s EVMS.  This schedule should include progress assistance visits, the first visit occurring no later than 30 days after contract award, and a compliance review as soon as practicable.  The Department of Defense Earned Value Management Implementation Guide (https://acc.dau.mil/CommunityBrowser.aspx?id=19557) outlines the requirements for conducting a progress assistance visit and validation compliance review.

              (2)  The offeror shall provide information and assistance as required by the Contracting Officer to support review of the plan.

              (3)  The Government will review the offeror’s EVMS implementation plan prior to contract award.

   (c)  The offeror shall identify in its offer the major subcontractors, or major subcontracted effort if major subcontractors have not been selected, planned for application of the EVMS requirement.  Prior to contract award, the offeror and NASA shall agree on the subcontractors, or subcontracted effort, subject to the EVMS requirement.

  (d) The offeror shall incorporate its compliance evaluation factors for subcontractors into the plan required by paragraph (b) of this provision.

(End of provision)

 

1852.234-2  Earned Value Management System.

   As prescribed in 1834.203-70(b) insert the following clause:

EARNED VALUE MANAGEMENT SYSTEM

(NOVEMBER 2006)

   (a)  In the performance of this contract, the Contractor shall use--

         (1)  An Earned Value Management System (EVMS) that has been determined by the Cognizant Federal Agency to be compliant with the EVMS guidelines specified in the American National Standards Institute (ANSI)/Electronic Industries Alliance (EIA) – 748 Standard, Industry Guidelines for Earned Value Management Systems (current version at the time of award) to manage this contract; and

         (2) Earned Value Management procedures that provide for generation of timely, accurate, reliable, and traceable information for the Contract Performance Report (CPR) required by the contract.

  (b)  If, at the time of award, the Contractor’s EVMS has not been determined by the Cognizant Federal Agency to be compliant with the EVMS guidelines, or the Contractor does not have an existing cost/schedule control system that is compliant with the guidelines in the ANSI/EIA-748 Standard (current version at the time of award), the Contractor shall apply the system to the contract and shall take timely action to implement its plan to obtain compliance/validation. The Contractor shall follow and implement the approved compliance/validation plan in a timely fashion.  The Government will conduct a Compliance Review to assess the contactor’s compliance with its plan, and if the Contractor does not follow the approved implementation schedule or correct all resulting system deficiencies identified as a result of the compliance review within a reasonable time, the Contracting Officer may take remedial action, that may include, but is not limited to, a reduction in fee.

  (c)  The Government will conduct Integrated Baseline Reviews (IBRs).  Such reviews shall be scheduled and conducted as early as practicable, and if a pre-award IBR has not been conducted, a post-award IBR should be conducted within 180 calendar days after contract award, or the exercise of significant contract options, or within 60 calendar days after distribution of a supplemental agreement that implements a significant funding realignment or effects a significant change in contractual requirements (e.g., incorporation of major modifications).  The objective of IBRs is for the Government and the Contractor to jointly assess the Contractor’s baseline to be used for performance measurement to ensure complete coverage of the statement of work, logical scheduling of the work activities, adequate resourcing, and identification of inherent risks.

  (d)  Unless a waiver is granted by the Cognizant Federal Agency, Contractor proposed EVMS changes require approval of the Cognizant Federal Agency prior to implementation.  The Cognizant Federal Agency shall advise the Contractor of the acceptability of such changes within 30 calendar days after receipt of the notice of proposed changes from the Contractor.  If the advance approval requirements are waived by the Cognizant Federal Agency, the Contractor shall disclose EVMS changes to the Cognizant Federal Agency at least 14 calendar days prior to the effective date of implementation.

  (e)  The Contractor agrees to provide access to all pertinent records and data requested by the Contracting Officer or a duly authorized representative.  Access is to permit Government surveillance to ensure that the Contractor’s EVMS complies, and continues to comply, with the EVMS guidelines referenced in paragraph (a) of this clause, and to demonstrate—

         (1)  Proper implementation of the procedures generating the cost and schedule information being used to satisfy the contract data requirements;

         (2)  Continuing application of the accepted company procedures in satisfying the CPR required by the contract through recurring program/project and contract surveillance; and

         (3)  Implementation of any corrective actions identified during the surveillance process.

   (f)  The Contractor shall be responsible for ensuring that its subcontractors, identified below, comply with the EVMS requirements of this clause as follows:

         (1)  For subcontracts with an estimated dollar value of $50M or more, the following subcontractors shall comply with the requirements of this clause.

         (Contracting Officer to insert names of subcontractors or subcontracted effort).

 

 

 

 

 

         (2)  For subcontracts with an estimated dollar value of less than $50M, the following subcontractors shall comply with the requirements of this clause except for the requirement in paragraph (b), if applicable, to obtain compliance/validation.

         (Contracting Officer to insert names of subcontractors or subcontracted effort.)

 

 

 

 

 

  (g)  If the contractor identifies a need to deviate from the agreed baseline by working against an Over Target Baseline (OTB) or Over Target Schedule (OTS), the contractor shall submit to the Contracting Officer a request for approval to begin implementation of an OTB or OTS.  This request shall include a top-level projection of cost and/or schedule growth, whether or not performance variances will be retained, and a schedule of implementation for the reprogramming adjustment.  The Government will approve or deny the request within 30 calendar days after receipt of the request.  Failure of the Government to respond within this 30-day period constitutes approval of the request.  Approval of the deviation request does not constitute a change, or the basis for a change, to the negotiated cost or price of this contract, or the estimated cost of any undefinitized contract actions.

(End of clause)

 

(ALTERNATE I)

(NOVEMBER 2006)

   As prescribed in 1834.203-70(b), substitute the following paragraph (b) for paragraph (b) of the basic clause:

  (b) If, at the time of award, the Contractor’s EVMS has not been determined by the Cognizant Federal Agency to be compliant with the EVMS guidelines, or the Contractor does not have an existing cost/schedule control system that is compliant with the guidelines in the ANSI/EIA-748 Standard (current version at the time of ward), the Contractor shall apply the system to the contract and shall take timely action to implement its plan to be compliant with the guidelines.  The Government will not formally validate/accept the Contractor’s EVMS with respect to this contract.  The use of the Contractor’s EVMS for this contract does not imply Government acceptance of the Contractor’s EVMS for application to future contracts.  The Government will monitor compliance through routine surveillance.

 

1852.235-70 Center for AeroSpace Information.

As prescribed in 1835.070(a), insert the following clause:

CENTER FOR AEROSPACE INFORMATION

(FEBRUARY 2003)

(a) The Contractor should register with and avail itself of the services provided by the NASA

Center for AeroSpace Information (CASI) (http://www.sti.nasa.gov) for the conduct of research or research and development required under this contract.  CASI provides a variety of services and products as a NASA repository and database of research information, which may enhance contract performance.

   (b) Should the CASI information or service requested by the Contractor be unavailable or not

in the exact form necessary by the Contractor, neither CASI nor NASA is obligated to search for or change the format of the information.  A failure to furnish information shall not entitle the Contractor to an equitable adjustment under the terms and conditions of this contract.

   (c) Information regarding CASI and the services available can be obtained at the Internet address contained in paragraph (a) of this clause or at the following address.

Center for AeroSpace Information (CASI)

            7121 Standard Drive

            Hanover, Maryland  21076-1320

            Email:  help@sti.nasa.gov

            Phone: 301-621-0390

            FAX:  301-621-0134

(End of clause)

 

1852.235-71  Key Personnel and Facilities.

  As prescribed in 1835.070(b), insert the following clause:

KEY PERSONNEL AND FACILITIES

(MARCH 1989)

  (a)   The personnel and/or facilities listed below (or specified in the  contract Schedule)  are considered essential to the work being performed under this contract.  Before removing, replacing, or diverting any of the listed or specified personnel or facilities, the Contractor shall (1) notify the Contracting Officer reasonably in advance and (2) submit justification (including proposed substitutions) in sufficient detail to permit evaluation of the impact on this contract.

   (b)   The Contractor shall make no diversion without the Contracting Officer's written consent; provided, that the Contracting Officer may ratify in writing the proposed change, and that ratification shall constitute the Contracting Officer's consent required by this clause.

   (c)   The list of personnel and/or facilities (shown below or as specified in the contract Schedule) may, with the consent of the contracting parties, be amended from time to time during the course of the contract to add or delete personnel and/or facilities.

 

   [List here the personnel and/or facilities considered essential, unless they are specified in the contract Schedule.]

(End of clause)

 

1852.235-72 Instructions for Responding to NASA Research Announcements.

As prescribed in 1835.070(c), insert the following provision:

INSTRUCTIONS FOR RESPONDING TO NASA RESEARCH ANNOUNCEMENTS

(NOVEMBER 2004)

  (a) General.

       (1) Proposals received in response to a NASA Research Announcement (NRA) will be used only for evaluation pur­poses.  NASA does not allow a proposal, the contents of which are not available without restriction from another source, or any unique ideas submitted in response to an NRA to be used as the basis of a solicitation or in negotiation with other organizations, nor is a pre-award synop­sis published for individual proposals.

       (2) A solicited proposal that results in a NASA award becomes part of the record of that transaction and may be available to the public on specific request; however, infor­mation or material that NASA and the awardee mutually agree to be of a privi­leged nature will be held in confidence to the extent permitted by law, including the Freedom of Information Act.

       (3) NRAs contain programmatic information and certain requirements which apply only to proposals prepared in response to that particular announcement.  These in­structions contain the general proposal preparation information which applies to responses to all NRAs.

       (4) A contract, grant, cooperative agree­ment, or other agreement may be used to accomplish an effort funded in response to an NRA.  ­NASA will determine the appropriate award instrument.  Contracts resulting from NRAs are subject to the Federal Acquisition Regulation and the NASA FAR Supplement.  Any resultant grants or cooperative agreements will be awarded and administered in accor­dance with the NASA Grant and Coopera­tive Agreement Handbook (NPR 5800.1).

       (5) NASA does not have mandatory forms or formats for re­sponses to NRAs; however, it is requested that proposals conform to the guidelines in these instructions.  NASA may accept proposals without discussion; hence, proposals should initially be as complete as possible and be submitted on the proposers' most favorable terms.

       (6) To be considered for award, a submission must, at a minimum, present a specific project within the areas delineated by the NRA; contain sufficient technical and cost information to permit a meaningful evalu­ation; be signed by an official autho­rized to legally bind the submitting organization; not merely offer to perform standard services or to just provide computer facilities or services; and not significantly duplicate a more specific current or pending NASA solicitation.

  (b) NRA-Specific Items.  Several proposal submission items appear in the NRA itself:  the unique NRA identifier; when to submit proposals; where to send proposals; number of copies required; and sources for more information.  Items included in these instructions may be supplemented by the NRA.

  (c) The following information is needed to permit consideration in an objective manner.  NRAs will generally specify topics for which additional information or greater detail is desirable.  Each proposal copy shall contain all submitted material, including a copy of the transmittal letter if it contains substantive information.

       (1) Transmittal Letter or Prefatory Materi­al.

            (i) The legal name and address of the organization and specific division or cam­pus identification if part of a larger organi­zation;

            (ii) A brief, scientifically valid project title intelligible to a scientifically literate reader and suitable for use in the public press;

            (iii) Type of organization: e.g., profit, nonprofit, educational, small business, minority, women-owned, etc.;

            (iv) Name and telephone number of the principal investigator and business person­nel who may be contacted during evalua­tion or negotiation;

            (v) Identification of other organi­zations that are currently evaluating a proposal for the same efforts;

            (vi) Identification of the NRA, by number and title, to which the proposal is responding;

            (vii) Dollar amount requested, desired starting date, and duration of pro­ject;

            (viii) Date of submission; and

            (ix) Signature of a responsible official or authorized representative of the organi­zation, or any other person authorized to legally bind the organization (unless the signature appears on the proposal itself).

       (2) Restriction on Use and Disclosure of Proposal Information.  Information con­tained in proposals is used for evaluation purposes only.  Offerors or quoters should, in order to maximize protection of trade secrets or other information that is confidential or privileged, place the following notice on the title page of the proposal and specify the information subject to the notice by inserting an appropri­ate identification in the notice.  In any event, information contained in proposals will be protected to the extent permitted by law, but NASA assumes no liability for use and disclosure of information not made subject to the notice.

Notice

Restriction on Use and Disclosure of Proposal Information

   The information (data) contained in [insert page numbers or other identification] of this proposal constitutes a trade secret and/or information that is commercial or financial and confidential or privileged.  It is furnished to the Government in confi­dence with the understanding that it will not,

without permission of the offeror, be used or disclosed other than for evaluation purposes; provided, however, that in the event a contract (or other agreement) is awarded on the basis of this proposal the Government shall have the right to use and disclose this information (data) to the ex­tent provided in the contract (or other agreement).  This restriction does not limit the Government's right to use or disclose this information (data) if obtained from another source without restriction.

       (3) Abstract.  Include a concise (200-300 word if not otherwise specified in the NRA) abstract describing the objective and the method of approach.

       (4) Project Description.

            (i) The main body of the proposal shall be a detailed statement of the work to be undertaken and should include objectives and expected significance; relation to the present state of knowledge; and relation to previous work done on the pro­ject and to related work in progress else­where.  The statement should outline the plan of work, including the broad design of experiments to be undertaken and a description of experimental methods and procedures.  The project de­scription should address the evaluation factors in these instructions and any spe­cific factors in the NRA.  Any substantial collaboration with individuals not referred to in the budget or use of consultants should be described.  Subcontracting significant portions of a research project is discouraged.

            (ii) When it is expected that the effort will require more than one year, ­the proposal should cover the complete project to the extent that it can be reason­ably anticipated.  Principal emphasis should be on the first year of work, and the description should distin­guish clearly between the first year's work and work planned for subsequent years.

       (5) Management Approach.  For large or complex efforts involving interactions among numerous individuals or other organizations, plans for distri­bution of responsibilities and ­ar­rangements for ensuring a coordi­nated effort should be described.

       (6) Personnel.  The principal investigator is responsible for supervision of the work and partici­pates in the conduct of the re­search regard­less of whether or not compensated under the award.  A short bio­graphical sketch of the prin­cipal investiga­tor, a list of principal publications and any exceptional qualifi­cations should be includ­ed.  Omit social security number and other personal items which do not merit consider­ation in evaluation of the proposal.  Give similar biographical information on other senior professional personnel who will be di­rectly associated with the project.  Give the names and titles of any other scien­tists and technical personnel associated substan­tially with the project in an advisory capac­ity.  Universities should list the approxi­mate number of students or other assistants, together with information as to their level of academic attainment.  Any special industry-university cooperative arrange­ments should be described.

       (7) Facilities and Equipment.

            (i) Describe available facilities and major items of equipment especially adapt­ed or suited to the proposed project, and any additional major equipment that will be required.  Identify any Government-owned facilities, industrial plant equip­ment, or special tooling that are proposed for use.  Include evidence of its availability and the cognizant Government points of contact.

            (ii) Before requesting a major item of capital equipment, the proposer should determine if sharing or loan of equipment already within the organization is a feasible alternative.  Where such ar­rangements cannot be made, the proposal should so state.  The need for items that typically can be used for research and non-research purposes should be explained.

       (8) Proposed Costs (U.S. Proposals Only).

            (i) Proposals should contain cost and technical parts in one volume: do not use separate "confidential" salary pages.  As applicable, include separate cost estimates for salaries and wages; fringe benefits; equipment; expendable materials and sup­plies; services; domestic and foreign travel; ADP expenses; publication or page charges; consultants; subcontracts; other miscella­neous identifiable direct costs; and indirect costs.  List salaries and wages in appropri­ate organizational categories (e.g., principal investigator, other scientific and engineer­ing professionals, graduate students, re­search assistants, and technicians and other non-professional personnel).  Estimate all staffing data in terms of staff-months or fractions of full-time.

            (ii) Explanatory notes should accompa­ny the cost proposal to provide identifica­tion and estimated cost of major capital equipment items to be acquired; purpose and estimated number and lengths of trips planned; basis for indirect cost computation (including date of most recent negotiation and cognizant agency); and clarification of other items in the cost proposal that are not self-evident.  List estimated expenses as yearly requirements by major work phases.

            (iii) Allowable costs are governed by FAR Part 31 and the NASA FAR Supplement Part 1831 (and OMB Circulars A-21 for educational institutions and A-122 for nonprofit organizations).

(iv) Use of NASA funds--NASA funding may not be used for foreign research efforts at any level, whether as a collaborator or a subcontract.  The direct purchase of supplies and/or services, which do not constitute research, from non-U.S. sources by U.S. award recipients  is permitted.  Additionally, in accordance with the National Space Transportation Policy, use of a non-U.S. manufactured launch vehicle is permitted only on a no-exchange-of-funds basis.

       (9) Security.  Proposals should not contain security classi­fied material.  If the research requires access to or may generate security classified informa­tion, the submit­ter will be required to comply with ­Government securi­ty regulations.

       (10) Current Support.  For other current projects being con­ducted by the principal investigator, provide title of project, sponsoring agency, and ending date.

       (11) Special Matters.

             (i) Include any required statements of environmental impact of the research, human subject or animal care provisions, conflict of interest, or on such other topics as may be required by the nature of the effort and current statutes, executive or­ders, or other current Government-wide guidelines.

 (ii) Identify and discuss risk factors and issues throughout the proposal where they are relevant, and your approach to managing these risks.

             (iii) Proposers should include a brief description of the organization, its facili­ties, and previous work experience in the field of the proposal.  Identify the cogni­zant Government audit agency, inspection agency, and administrative contracting officer, when applicable.

  (d) Renewal Proposals.

       (1) Renewal proposals for existing awards will be considered in the same manner as proposals for new endeavors.  A renewal proposal should not repeat all of the information that was in the original proposal.  The renewal proposal should refer to its predecessor, update the parts that are no longer current, and indicate what elements of the research are expected to be covered during the period for which support is desired.  A description of any significant findings since the most recent progress report should be included.  The renewal proposal should treat, in rea­sonable detail, the plans for the next period, contain a cost estimate, and otherwise ad­here to these instructions.

       (2) NASA may renew an effort either through amendment of an existing contract or by a new award.

  (e) Length.  Unless otherwise specified in the NRA, effort should be made to keep propos­als as brief as possible, concentrating on substantive material.  F­­ew proposals need exceed 15-20 pages.  Necessary detailed infor­mation, such as reprints, should be included as attachments.  A complete set of attach­ments is necessary for each copy of the proposal.  As proposals are not returned, avoid use of "one-of-a-kind" attachments.

  (f) Joint Proposals.

       (1) Where multiple organizations are involved, the proposal may be submitted by only one of them.  It should clearly describe the role to be played by the other organizations and indicate the legal and managerial arrangements contem­plated.  In other instances, simultaneous submission of related proposals from each organization might be appropriate, in which case parallel awards would be made.

       (2) Where a project of a cooperative nature with NASA is contemplated, describe the contributions expect­ed from any participating NASA investiga­tor and agency facilities or equipment which may be required.  The proposal must be confined only to that which the proposing organization can com­mit itself.  "Joint" proposals which specify the internal arrangements NASA will actually make are not acceptable as a means of establishing an agency commit­ment.

  (g) Late Proposals.  Proposals or proposal modifications received after the latest date specified for receipt may be considered if a significant reduction in cost to the Government is probable or if there are significant technical advantages, as compared with proposals previously received.

  (h) Withdrawal.  Proposals may be withdrawn by the propos­er at any time before award.  Offerors are requested to notify NASA if the proposal is funded by another organization or of other changed circumstances which dictate termination of evaluation.

  (i) Evaluation Factors.

       (1) Unless otherwise specified in the NRA, the principal elements (of approximately equal weight) considered in evaluating a proposal are its relevance to NASA's objec­tives, intrinsic merit, and cost.

       (2) Evaluation of a proposal's relevance to NASA's objectives includes the consider­ation of the potential contribution of the effort to NASA's mission.

       (3) Evaluation of its intrinsic merit includes the consideration of the following factors of equal importance:

            (i) Overall scientific or technical merit of the proposal or unique and innovative methods, approaches, or concepts demon­strated by the proposal.

            (ii) Offeror's capabilities, related experience, facilities, techniques, or unique combinations of these which are integral factors for achieving the proposal objec­tives.

            (iii) The qualifications, capabilities, and experience of the proposed principal investigator, team leader, or key personnel critical in achieving the proposal objectives.

            (iv) Overall standing among similar proposals and/or evaluation against the state-of-the-art.

       (4) Evaluation of the cost of a proposed effort may include the realism and reasonableness of the proposed cost and available funds.

  (j) Evaluation Techniques.  Selection decisions will be made follow­ing peer and/or scientific review of the propos­als.  Several evaluation techniques are regularly used within NASA.  In all cases proposals are subject to scientific review by discipline special­ists in the area of the proposal. Some proposals are reviewed entirely in-house, others are evaluated by a combination of in-house and selected external reviewers, while yet others are subject to the full external peer review tech­nique (with due regard for conflict-of-interest and protection of proposal informa­tion), such as by mail or through assembled panels.  The final decisions are made by a NASA selecting official.  A proposal which is scientifically and programmati­cally meritorious, but not selected for award

during its initial review, may be included in subsequent reviews unless the proposer requests other­wise.

  (k) Selection for Award.

        (1) When a proposal is not selected for award, the proposer will be  noti­fied.  NASA will explain generally why the proposal was not selected.  Proposers desir­ing additional information may contact the selecting official who will arrange a de­briefing.

        (2) When a proposal is selected for award, negotiation and award will be handled by the procurement office in the funding installation.  The proposal is used as the basis for negotiation.  The con­tracting officer may re­quest certain busi­ness data and may for­ward a model award instrument and other informa­tion pertinent to negotiation.

  (l)  Additional Guidelines Applicable to Foreign Proposals and Proposals Including Foreign Participation.

      (1) NASA welcomes proposals from outside the U.S.  However, foreign entities are generally not eligible for funding from NASA. Therefore, unless otherwise noted in the NRA, proposals from foreign entities should not include a cost plan unless the proposal involves collaboration with a U.S. institution, in which case a cost plan for only the participation of the U.S. entity must be included.  Proposals from foreign entities and proposals from U.S. entities that include foreign participation must be endorsed by the respective government agency or funding/sponsoring institution in the country from which the foreign entity is proposing.  Such endorsement should indicate that the proposal merits careful consideration by NASA, and if the proposal is selected, sufficient funds will be made available to undertake the activity as proposed.

      (2)  All foreign proposals must be typewritten in English and comply with all other submission requirements stated in the NRA.  All foreign proposals will undergo the same evaluation and selection process as those originating in the U.S.  All proposals must be received before the established closing date.  Those received after the closing date will be treated in accordance with paragraph (g) of this provision.  Sponsoring foreign government agencies or funding institutions may, in exceptional situations, forward a proposal without endorsement if endorsement is not possible before the announced closing date.  In such cases, the NASA sponsoring office should be advised when a decision on endorsement can be expected.

      (3)  Successful and unsuccessful foreign entities will be contacted directly by the NASA sponsoring office.  Copies of these letters will be sent to the foreign sponsor.  Should a foreign proposal or a U.S. proposal with foreign participation be selected, NASA's Office of External


Relations will arrange with the foreign sponsor for the proposed participation on a no-exchange-of-funds basis, in which NASA and the non-U.S. sponsoring agency or funding institution will each bear the cost of discharging their respective responsibilities.

      (4)  Depending on the nature and extent of the proposed cooperation, these arrangements may entail:

            (i)  An exchange of letters between NASA and the foreign sponsor; or

           (ii)  A formal Agency-to-Agency Memorandum of Understanding (MOU).

 (m) Cancellation of NRA.  NASA reserves the right to make no awards under this NRA and to cancel this NRA.  NASA assumes no liability for canceling the NRA or for anyone's failure to receive actual notice of cancellation.

(End of provision)

 

1852.235-73 Final Scientific and Technical Reports.

As prescribed in 1835.070(d) insert the following clause:

Final Scientific and Technical Reports

(JANUARY 2005)

   (a) The Contractor shall submit to the Contracting Officer a final report that summarizes the

results of the entire con­tract, including recom­menda­tions and conclusions based on the experience and results obtained.  The final report should include tables, graphs, diagrams, curves, sketches, photo­graphs, and drawings in sufficient detail to explain comprehensively the results achieved under the contract.

   (b) The final report shall be of a quality suitable for publication and shall follow the formatting and stylistic guidelines contained in NPR 2200.2A, Guidelines for Documentation, Approval, and Dissemination of NASA Scientific and Technical Information.  Electronic formats for submission of reports should be used to the maximum extent practical.  Before electronically submitting reports containing scientific and technical information (STI) that is export-controlled or limited or restricted, contact the Contracting Officer to determine the requirements to electronically transmit these forms of STI.  If appropriate electronic safeguards are not available at the time of submission, a paper copy or a CD-ROM of the report shall be required.  Information regarding appropriate electronic formats for final reports is available at http://www.sti.nasa.gov under “Publish STI – Electronic File Formats.”

   (c) The last page of the final report shall be a completed Standard Form (SF) 298, Report Documentation Page.

   (d) In addition to the final report submitted to the Contracting Officer, the Contractor shall concurrently provide to the Center STI/Publication Manager and the NASA Center for AeroSpace Information (CASI) a copy of the letter transmitting the final report to the Contracting Officer.  The copy of the letter shall be submitted to CASI at the following address:

Center for AeroSpace Information (CASI)

Attn: Acquisitions Collections Development Specialist

            7121 Standard Drive

            Hanover, Maryland  21076-1320

   (e) In accordance with paragraph (d) of the Rights in Data --General clause (52.227-14) of this contract, the Contractor may publish, or otherwise disseminate, data produced during the performance of this contract, including data contained in the final report, and any additional reports required by 1852.235-74 when included in the contract, without prior review by NASA.  The Contractor is responsible for reviewing publication or dissemination of the data for conformance with laws and regulations governing its distribution, including intellectual property rights, export control, national security and other requirements, and to the extent the contractor receives or is given access to data necessary for the performance of the contract which contain restrictive markings, for complying with such restrictive markings.  Should the Contractor seek to publish or otherwise disseminate the final report, or any additional reports required by 1852.235-74 if applicable, as delivered to NASA under this contract, the Contractor may do so once NASA has completed its document availability authorization review, and availability of the report has been determined.

(End of clause)

 

Alternate I 

(FEBRUARY 2003)

   As prescribed by 1835.070(d)(1), insert the following as paragraph (e) of the basic clause:

   (e) The data resulting from this research activity is “fundamental research” which will be broadly shared within the scientific community.  No foreign national access or dissemination restrictions apply to this research activity.   The Contractor may publish, release, or otherwise disseminate data produced during the performance of this contract, including the final report, without prior review by NASA for export control or national security purposes.  However, NASA retains the right to review the final report to ensure that proprietary information, which may have been provided to the Contractor, is not released without authorization and for consistency with NASA publication standards.  Additionally, the Contractor is responsible for reviewing any publication, release, or dissemination of the data for conformance with other restrictions expressly set forth in this contract, and to the extent it receives or is given access to data necessary for the performance of the contract which contain restrictive markings, for compliance with such restrictive markings.

Alternate II

(FEBRUARY 2003)

   As prescribed by 1835.070(d)(2), insert the following as paragraph (e) of the basic clause:

   (e) Data resulting from this research activity may be subject to export control, national security restrictions or other restrictions designated by NASA; or, to the extent the Contractor receives or is given access to data necessary for the performance of the contract which contain restrictive markings, may include proprietary information of others.  Therefore, the Contractor shall not publish, release, or otherwise disseminate, except to NASA, data produced during the performance of this contract, including data contained in the final report and any additional reports required by 1852.235-74 when included in the contract, without prior review by NASA.  Should the Contractor seek to publish, release, or otherwise disseminate data produced during the performance of this contract, the Contractor may do so once NASA has completed its document availability authorization review and the availability of the data has been determined.

 (End of clause)

 

ALTERNATE III

(JANUARY 2005)

As prescribed by 1835.070(d)(3), insert the following as paragraph (e) of the basic clause:

    (e) The Contractor’s rights in data are defined in FAR 52.227-20, Rights In Data – SBIR Program.  The Contractor may publish, or otherwise disseminate, such data without prior review by NASA.  The Contractor is responsible for reviewing publication or dissemination of the data for conformance with laws and regulations governing its distribution, including intellectual property rights, export control, national security and other requirements, and to the extent the Contractor receives or is given access to data necessary for the performance of the contract which contain restrictive markings, for complying with such restrictive markings.  In the event the Contractor has established its claim to copyright data produced under this contract and has affixed a copyright notice and acknowledgement of Government sponsorship, or has affixed the SBIR Rights Notice contained in paragraph (d) of FAR 52.227-20, the Government shall comply with such Notices.

 

1852.235-74  Additional Reports of  Work -- Research and Development.

   As prescribed in 1835.070(e), insert a clause substantially the same as the following:

ADDITIONAL REPORTS OF WORK -- RESEARCH AND DEVELOPMENT

(FEBRUARY 2003)

   In addition to the final report required under this contract, the Contractor shall submit the following report(s) to the Contracting Officer:

   (a) Monthly progress reports.  The Contractor shall submit separate monthly reports of all work accomplished during each month of contract performance.  Re­ports shall be in narrative form, brief, and informal.  They shall include a quantitative descrip­tion of progress, an indication of any current prob­lems that may impede performance, proposed correc­tive action, and a discussion of the work to be performed during the next monthly reporting period

   (b) Quarterly progress reports.  The Contractor shall submit separate quarterly reports of all work accomplished during each three-month period of contract performance.  In addition to factual data, these reports should include a separate analysis section interpreting the results obtained, recommend­ing further action, and relating occurrences to the ulti­mate objectives of the contract.  Sufficient dia­grams, sketches, curves, photographs, and drawings should be included to convey the intended meaning.

   (c) Submission dates.  Monthly and quarterly reports shall be submitted by the 15th day of the month following the month or quarter being reported.  If the contract is awarded beyond the middle of a month, the first monthly report shall cover the period from award until the end of the following month.  No monthly report need be submitted for the third month of contract effort for which a quarterly report is required.  No quarterly report need be submitted for the final three months of contract effort since that period will be covered in the final report.  The final report shall be submitted within ____days after the completion of the effort under the contract.

(End of clause)

 

1852.236-71 Additive or Deductive Items.

  As prescribed in 1836.570(a), insert the following provision:

ADDITIVE OR DEDUCTIVE ITEMS

(MARCH 1989)

  (a)   The low bidder for purposes of award shall be the conforming responsible bidder offering the low aggregate amount for the first or base bid item, plus or minus (in order of priority listed in the Schedule) those additive or deductive bid items providing the most features of the work within the funds determined by the Government to be available before bids are opened. If addition of another bid item in the listed order of priority would make the award exceed those funds for all bidders, it shall be skipped and the next subsequent additive bid item in a lower amount shall be added for each bid if award on it can be made within the  funds.

   (b)   An example for one bid is an amount available of $100,000, a bidder's base bid of $85,000, and four successive additives of $10,000, $8,000, $6,000, and $4,000.  In this example,



Contractor's on-site personnel work during a holiday other than those in paragraph (a) of this clause, no form of holiday or other premium compensation shall be reimbursed as either a direct or indirect cost.  However, this does not preclude reimbursement for authorized overtime work that would have been overtime regardless of the status of the day as a holiday.

  (d)  The Contractor shall place identical requirements, including this paragraph, in all subcontracts that require performance of work on-site, unless otherwise instructed by the Contracting Officer.

 

ALTERNATE II

(OCTOBER 2000)

  As prescribed in 1842.7001(c), add the following as paragraphs (e) and (f) if Alternate I is used, or as paragraphs (c) and (d) if Alternate I is not used.  If added as paragraphs (c) and (d), amend the first sentence of paragraph (d) by deleting "(e)" and adding "(c)" in its place.

 

  (e) When the NASA installation grants administrative leave to its Government employees (e.g., as a result of inclement weather, potentially hazardous conditions, or other special circumstances), Contractor personnel working on-site should also be dismissed.  However, the contractor shall provide sufficient on-site personnel to perform round-the-clock requirements of critical work already in process, unless otherwise instructed by the Contracting Officer or authorized representative.

  (f)  Whenever administrative leave is granted to Contractor personnel pursuant to paragraph (e) of this clause, it shall be without loss to the Contractor.  The cost of salaries and wages to the Contractor for the period of any such excused absence shall be a reimbursable item of cost under this contract for employees in accordance with the Contractor's established accounting policy.

 

1852.242-73 NASA Contractor Financial Management Reporting.

  As prescribed in 1842.7202, insert the following clause:

NASA CONTRACTOR FINANCIAL MANAGEMENT REPORTING

(NOVEMBER 2004)

  (a)  The Contractor shall submit NASA Contractor Financial Management Reports on NASA Forms 533 in accordance with the instructions in NASA Procedures and Guidelines (NPR) 9501.2, NASA Contractor Financial Management Reporting, and on the reverse side of the forms, as supplemented in the Schedule of this contract.  The detailed reporting categories to be used, which shall correlate with technical and schedule reporting, shall be set forth in the Schedule.  Contractor implementation of reporting requirements under this clause shall include NASA approval of the definitions of the content of each reporting category and give due regard to the Contractor's established financial management information system.

  (b)  Lower level detail used by the Contractor for its own management purposes to validate information provided to NASA shall be compatible with NASA requirements.

  (c)  Reports shall be submitted in the number of copies, at the time, and in the manner set forth in the Schedule or as designated in writing by the Contracting Officer.  Upon completion and acceptance by NASA of all contract line items, the Contracting Officer may direct the Contractor to submit Form 533 reports on a quarterly basis only, report only when changes in actual cost occur, or suspend reporting altogether.

  (d)  The Contractor shall ensure that its Form 533 reports include accurate subcontractor cost data, in the proper reporting categories, for the reporting period.

  (e)  If during the performance of this contract NASA requires a change in the information or reporting requirements specified in the Schedule, or as provided for in paragraph (a) or (c) of this clause, the Contracting Officer shall effect that change in accordance with the Changes clause of this contract.

(End of clause)

 

1852.242-78 Emergency Medical Services and Evacuation.

  As prescribed in 1842.7003, insert the following clause:

EMERGENCY MEDICAL SERVICES AND EVACUATION

(APRIL 2001)

  The Contractor shall, at its own expense, be responsible for making all arrangements for emergency medical services and evacuation, if required, for its employees while performing work under this contract outside the United States or in remote locations in the United States.  If necessary to deal with certain emergencies, the Contractor may request the Government to provide medical or evacuation services.  If the Government provides such services, the Contractor shall reimburse the Government for the costs incurred.

(End of clause)

 

1852.243-70  Engineering Change Proposals.

  As prescribed in 1843.205-70(a)(1), insert the following clause, modified to suit contract type:

  ENGINEERING CHANGE PROPOSALS

(OCTOBER 2001)

  (a)  Definitions.

            “ECP” means an Engineering Change Proposal (ECP) which is a proposed engineering change and the documentation by which the change is described, justified, and submitted to the procuring activity for approval or disapproval.

  (b)  Either party to the contract may originate ECPs.  Implementation of an approved ECP may occur by either a supplemental agreement or, if appropriate, as a written change order to the contract.

  (c)  Any ECP submitted to the Contracting Officer shall include a "not-to-exceed"        [price or estimated cost] increase or decrease adjustment amount, if any, and the required [time of delivery or period of performance]  adjustment,  if  any,  acceptable  to the originator of the ECP.  If the change is originated within the Government, the Contracting Officer shall obtain a written agreement with the contractor regarding the "not-to-exceed"        [price or estimated cost] and  [delivery or period of performance]  adjustments, if any, prior to issuing an order for implementation of the change.

  (d)  After submission of a contractor initiated ECP, the contracting officer may require the contractor to submit the following information:

     (1) Cost or pricing data in accordance with FAR 15.403-5 if the proposed change meets the criteria for its submission under FAR 15.403-4; or

     (2) Information other than cost or pricing data adequate for contracting officer determination of  price reasonableness or cost realism.  The contracting officer reserves the right to request additional information if that provided by the contractor is considered inadequate for that purpose.  If the contractor claims applicability of one of the exceptions to submission of cost or pricing data, it shall cite the exception and provide rationale for its applicability.

 (e) If the ECP is initiated by NASA, the contracting officer shall specify the cost information requirements, if any.

(End of clause)

 

ALTERNATE I

(JULY 1997)

  As prescribed in 1843.205-70(a)(2), add the following paragraph (f), modified to suit contract type, to the basic clause:

  (f)  If the ___ [price or estimated cost] adjustment proposed for any Contractor-originated ECP is ___ [insert a percent or dollar amount of the contract price or estimated cost] or less, the ECP shall be executed with no adjustment to the contract ___ [price or estimated cost].

 

ALTERNATE II

(SEPTEMBER 1990)

  As prescribed in 1843.205-70(a)(3), add the following sentence at the end of paragraph (c) of the basic clause:

          An ECP accepted in accordance with the Changes clause of this contract shall not be considered an authorization to the Contractor to exceed the estimated cost in the contract Schedule, unless the estimated cost is increased by the change order or other contract modification.

 

1852.243-71 Shared Savings.

  As prescribed in 1843.7102, insert the following clause:

                                                             SHARED SAVINGS

(MARCH 1997)

 (a) The Contractor is entitled, under the provisions of this clause, to share in cost savings resulting from the implementation of cost reduction projects which are presented to the Government in the form of Cost Reduction Proposals (CRP) and approved by the Contracting Officer.  These cost reduction projects may require changes to the terms, conditions or statement of work of this contract.  Any cost reduction projects must not change the essential function of any products to be delivered or the essential purpose of services to be provided under the contract.

  (b) Definitions:

       (1) Cost savings, as contemplated by this clause mean savings that result from instituting changes to the covered contract, as identified in an approved Cost Reduction Proposal. 

      (2) Cost Reduction Proposal - For the purposes of this clause, a Cost Reduction Proposal means a proposal that recommends alternatives to the established procedures and/or organizational support of a contract or group of contracts.  These alternatives must result in a net reduction of contract cost and price to NASA.  The proposal will include technical and cost information sufficient to enable the Contracting Officer to evaluate the CRP and approve or disapprove it.

     (3) Covered contract - As used in this provision, covered contract means the contract, including unexercised options but excluding future contracts, whether contemplated or not, against which the CRP is submitted.

     (4) Contractor implementation costs - As used in this provision, Contractor implementation costs, or "implementation costs", shall mean those costs which the Contractor incurs on covered contracts specifically in developing, preparing, submitting, and negotiating a CRP, as well as those costs the Contractor will incur on covered contracts to make any structural or organizational changes in order to implement an approved CRP.

     (5) Government costs - As used in this provision, the term Government costs means internal costs of NASA, or any other Government agency, which result directly from development and implementation of the CRP.  These may include, but are not limited to, costs associated with the administration of the contract or with such contractually related functions such as testing, operations, maintenance and logistics support.  These costs also include costs associated with other Agency contracts (including changes in contract price or cost and fee) that may be affected as a result of the implementation of a CRP.  They do not include the normal administrative costs of reviewing and processing the Cost Reduction Proposal.

  (c) General.  The Contractor will develop, prepare and submit CRP's with supporting information as detailed in paragraph (e) of this clause, to the Contracting Officer.  The CRP will describe the proposed cost reduction activity in sufficient detail to enable the Contracting Officer to evaluate it and to approve or disapprove it.   The Contractor shall share in any net cost savings realized from approved and implemented CRPs in accordance with the terms of this clause.  The Contractor's actual percentage share of the cost savings shall be a matter for negotiation with the Contracting Officer, but shall not, in any event, exceed 50 percent of the total cost savings recognized by the Contracting Officer.  The Contractor may propose changes in other activities that impact performance on its contract, including Government and other Contractor operations, if such changes will optimize cost savings.  A Contractor shall not be entitled to share, however, in any cost savings that are internal to the Government, or which result from changes made to any contracts to which it is not a party even if those changes were proposed as  a part of its CRP.  Early communication between the Contractor and Government is encouraged.  The communication may be in the form of a concept paper or preliminary proposal.  The Government is not committed to accepting any proposal as a result of these early discussions.

  (d) Computation of cost savings.  The cost savings to be shared between the Government and the Contractor will be computed by the Contracting Officer by comparing a current estimate to complete (ETC) for the covered contract, as structured before implementation of the proposed CRP, to a revised ETC which takes into account the implementation of that CRP.  The cost savings to be shared shall be reduced by any cost overrun, whether experienced or projected, that is identified on the covered contract before implementation of the CRP.  Although a CRP may result in cost savings that extend far into the future, the period in which the Contractor may share in those savings will be limited to no more than five years.  Implementation costs of the Contractor must be considered and specifically identified in the revised ETC.  The Contracting Officer shall offset Contractor cost savings by any increased costs (whether implementing or recurring) to the Government when computing the total cost savings to be shared.  The Contractor shall not be entitled, under the provisions of this clause, to share in any cost reductions to the contract that are the result of changes stemming from any action other than an approved CRP.  However, this clause does not limit recovery of any such reimbursements that are allowed as a result of other contract provisions.

  (e) Supporting Information.  As a minimum, the Contractor shall provide the following supporting information with each CRP:

      (1) Identification of the current contract requirements or established procedures and/or organizational support which are proposed to be changed.

      (2) A description of the difference between the current process or procedure and the proposed change.  This description shall address how proposed changes will meet NASA requirements and discuss the advantages and disadvantages of the existing practice and the proposed changes.

      (3) A list of contract requirements which must be revised, if any, if the CRP is approved, along with proposed revisions.  Any changes to NASA or delegated contract management processes should also be addressed.

      (4) Detailed cost estimates which reflect the implementation costs of the CRP.

      (5) An updated ETC for the covered contract, unchanged, and a revised ETC for the covered contract which reflects changes resulting from implementing the CRP.  If the CRP proposes changes to only a limited number of elements of the contract, the ETCs need only address those portions of the contract that have been impacted.  Each ETC shall depict the level of costs incurred or to be incurred by year, or to the level of detail required by the Contracting Officer.  If other CRPs have been proposed or approved on a contract, the impact of these CRPs must be addressed in the computation of the cost savings to ensure that the cost savings identified are attributable only to the CRP under consideration in the instant case.

      (6) Identification of any other previous submissions of the CRP, including the dates submitted, the agencies and contracts involved, and the disposition of those submittals.

  (f) Administration.

      (1) The Contractor shall submit proposed CRPs to the Contracting Officer who shall be responsible for the review, evaluation and approval.  Normally, CRP's should not be entertained for the first year of performance to allow the Contracting Officer to assess performance against the basic requirements.  If a cost reduction project impacts more than a single contract, the Contractor may, upon concurrence of the Contracting Officers responsible for the affected contracts,  submit a single CRP which addresses fully the cost savings projected on all affected contracts that contain this Shared Savings Clause.  In the case of multiple contracts affected, responsibility for the review and approval of the CRP will be a matter to be decided by the affected Contracting Officers.

      (2) Within 60 days of receipt, the Contracting Officer shall complete an initial evaluation of any proposed cost reduction plan to determine its feasibility.  Failure of the Contracting Officer to provide a response within 60 days shall not be construed as approval of the CRP.  The Government shall promptly notify the Contractor of the results of its initial evaluation and indicate what, if any, further action will be taken.  If the Government determines that the proposed CRP has merit, it will open discussions with the Contractor to establish the cost savings to be recognized, the Contractor’s share of the cost savings, and a payment schedule.  The Contractor shall continue to perform in accordance with the terms and conditions of the existing contract until a contract modification is executed by the Contracting Officer.  The modification shall constitute approval of the CRP and shall incorporate the changes identified by the CRP, adjust the contract cost and/or price, establish the Contractor’s share of cost savings, and incorporate the agreed to payment schedule.

      (3) The Contractor will receive payment by submitting invoices to the Contracting Officer for approval.  The amount and timing of individual payments will be made in accordance with the schedule to be established with the Contracting Officer.  Notwithstanding the overall savings recognized by the Contracting Officer as a result of an approved CRP, payment of any portion of the Contractor’s share of savings shall not be made until NASA begins to realize a net cost savings on the contract (i.e., implementation, startup and other increased costs resulting from the change have been offset by cumulative cost savings).  Savings associated with unexercised options will not be paid unless and until the contract options are exercised.  It shall be the responsibility of the Contractor to provide such justification as the Contracting Officer deems necessary to substantiate that cost savings are being achieved.  

      (4) Any future activity, including a merger or acquisition undertaken by the Contractor (or to which the Contractor becomes an involved party), which has the effect of reducing or reversing the cost savings realized from an approved CRP for which the Contractor has received payment may be cause for recomputing the net cost savings associated with any approved CRP.  The Government reserves the right to make an adjustment to the Contractor's share of cost savings and to receive a refund of moneys paid if necessary.  Such adjustment shall not be made without notifying the Contractor in advance of the intended action and affording the Contractor an opportunity for discussion.

  (g) Limitations.  Contract requirements that are imposed by statute shall not be targeted for cost reduction exercises.  The Contractor is precluded from receiving reimbursements under both this clause and other incentive provisions of the contract, if any, for the same cost reductions.

  (h) Disapproval of, or failure to approve, any proposed cost reduction proposal shall not be considered a dispute subject to remedies under the Disputes clause.    

  (i) Cost savings paid to the Contractor in accordance with the provisions of this clause do not constitute profit or fee within the limitations imposed by 10 U.S.C. 2306(d) and 41 U.S.C. 254(b).

(End of clause)

 

1852.243-72  Equitable Adjustments.

  As prescribed in 1843.205-70(b), insert the following clause.

EQUITABLE ADJUSTMENTS

 (APRIL 1998)

  (a)  The provisions of all other clauses contained in this contract which provide for an equitable adjustment, including those clauses incorporated by reference with the exception of the “Suspension of Work” clause (FAR 52.242-14), are supplemented as follows:

 

Upon written request, the Contractor shall submit a proposal for review by the Government.  The proposal shall be submitted to the contracting officer within the time limit indicated in the request or any extension thereto subsequently granted.  The proposal shall provide an itemized breakdown of all increases and decreases in the contract for the Contractor and each subcontractor in at least the following detail: material quantities and costs; direct labor hours and rates for each trade; the associated FICA, FUTA, SUTA, and Workmen’s Compensation  Insurance; and equipment hours and rates.

 

  (b)  The overhead percentage cited below shall be considered to include all indirect costs including, but not limited to, field and office supervisors and assistants, incidental job burdens, small tools, and general overhead allocations.  “Commission” is defined as profit on work performed by others.  The percentages for overhead, profit, and commission are negotiable


according to the nature, extent, and complexity of the work involved, but in no case shall they exceed the following ceilings:

 

 

Overhead

(Percent)

Profit

(Percent)

Commission

To Contractor on work performed by other than its own forces

-----

-----

10 percent

To first tier subcontractor on work performed by its subcontractors           

-----

-----    

10 percent

To Contractor and/or subcontractors on work  performed with their own forces

10 percent

10 percent

-----

 

  (c)  Not more than four percentages for overhead, profit, and commission shall be allowed regardless of the number of subcontractor tiers. 

  (d)  The Contractor or subcontractor shall not be allowed overhead or commission on the overhead, profit, and/or commission received by its subcontractors.

  (e)  Equitable adjustments for deleted work shall include credits, limited to the same percentages for overhead, profit, and commission in paragraph (b) of this clause.

  (f)  On proposals covering both increases and decreases in the amount of the contract,  the application of the overhead, profit, and commission shall be on the net change in direct costs for the Contractor or the subcontractor performing the work.

  (g)  After receipt of the Contractor’s proposal, the contracting officer shall act within a reasonable period, provided that when the necessity to proceed with a change does not permit time to properly check the proposal, or in the event of a failure to reach an agreement on a proposal, the contracting officer may order the Contractor to proceed on the basis of the price being determined at the earliest practicable date.  In such a case, the price shall not be more than the increase or less than the decrease proposed.

 (End of clause)

 

1852.244-70  Geographic Participation in the Aerospace Program.

  As prescribed in 1844.204-70, insert the following clause:

GEOGRAPHIC PARTICIPATION IN THE AEROSPACE PROGRAM

(APRIL 1985)

  (a)  It is the policy of the National Aeronautics and Space Administration to advance a broad participation by all geographic regions in filling the scientific, technical, research and development, and other needs of the aerospace program.

  (b)  The Contractor agrees to use its best efforts to solicit subcontract sources on the broadest feasible geographic basis consistent with efficient contract performance and without impairment of program effectiveness or increase in program cost.

  (c)  The Contractor further agrees  to  insert  this clause in  all subcontracts of $100,000 and over.

(End of clause)