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)