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Procurement Notice

(July 7, 1997)


PURPOSE: To delete the contract value dollar threshold for when quick-closeout may be used without the prior approval of the installation procurement officer and replaces it with a requirement to perform a risk assessment.

BACKGROUND: NFS 1842.708(a)(2)(ii) limits the use of quick-closeout to contracts with a value, excluding fee, not greater than $2 million unless the prior approval of the installation procurement officer is obtained. This entails the preparation of a deviation package for each contract above the threshold for which quick-closeout is to be used. Several NASA installations have processed a number of such deviations over the last few years. In addition, one installation has twice requested and been granted a class deviation to the NFS $2 million threshold in order to handle the number of contracts above that amount for which the use of quick-closeout procedures was desired. We believe the performance of a risk assessment is a better tool than a limitation on the contract value for ensuring that quick-closeout is properly used.

REGULATION: Section 1842.708 is revised as set forth in the enclosed replacement pages to the NFS.

REPLACEMENT PAGES: You may use the enclosed pages to replace pages 42:5 and 42:6 of the NFS.

REGULATORY COMPLIANCE: This PN was published as a final rule in the Federal Register (62 FR 36227-36228, July 7, 1997).

EFFECTIVE DATE: This PN is effective as dated and shall remain in effect until canceled or superseded.

HEADQUARTERS CONTACT: Joseph Le Cren, Code HK, (202) 358-0444; e-mail

Laura Layton, Director

Contract Management Division