PART 1832
CONTRACT
FINANCING
TABLE OF
CONTENTS
1832.006-2 Definition.
SUBPART 1832.1
NON-COMMERICAL ITEM PURCHASE FINANCING
1832.111 Contractor
clauses for non-commercial purchases.
1832.111-70 NASA contract clause.
SUBPART 1832.2
COMMERCIAL ITEM PURCHASE FINANCING
1832.202-1 Policy.
1832.206 Solicitation
provisions and contract clauses.
SUBPART 1832.4
ADVANCE PAYMENTS FOR NON-COMMERCIAL ITEMS
1832.402 General.
1832.406 Letters of credit.
1832.407 Interest.
1832.409 Contracting officer action.
1832.409-1 Recommendation
for approval.
1832.409-170 NASA procedure for approval.
1832.410 Findings, determination, and authorization.
1832.412 Contract clause.
1832.412-70
NASA contract clauses.
SUBPART 1832.5
PROGRESS PAYMENTS BASED ON COSTS
1832.501 General.
1832.501-1 Customary progress payment rates.
1832.501-2 Unusual progress payments.
1832.502 Preaward matters.
1832.502-2 Contract finance office clearance.
1832.502-4 Contract clauses.
1832.502-470 NASA
contract clause.
1832.503
Postaward matters.
1832.503-5 Administration of progress payments.
1832.504 Subcontracts.
SUBPART 1832.7
CONTRACT FUNDING
1832.702 Policy.
1832.702-70 NASA policy.
1832.704 Limitation
of cost or funds.
1832.704-70 Incrementally funded fixed-price
contracts.
1832.705 Contract
clauses.
1832.705-2 Clauses
for limitation of cost or funds.
1832.705-270 NASA clauses for limitation of
cost or funds.
SUBPART 1832.9
PROMPT PAYMENT
1832.906 Contract
financing payments.
1832.908 Contract
clauses.
SUBPART 1832.10
PERFORMANCE-BASED PAYMENTS
1832.1001 Policy.
1832.1004 Procedure.
1832.1005 Contract
clauses.
1832.1009 Title.
SUBPART
1832.11 ELECTRONIC
FUNDS TRANSFER
1832.1110 Solicitation
provision and contract clauses.
PART 1832
CONTRACT
FINANCING
1832.006-2 Definition.
The
Assistant Administrator for Procurement is the Agency remedy coordination
official.
Subpart 1832.1--Non-Commercial Item Purchase Financing
1832.111 Contract clauses for non-commercial purchases.
1832.111-70 NASA contract clause.
The
contracting officer shall insert the clause at 1852.232-79, Payment for On-Site Preparatory Costs, in solicitations and contracts
for construction on a fixed-price basis when progress payments are contemplated
and pro rata payment of on-site preparatory costs to the contractor is
appropriate.
Subpart 1832.2--Commercial Item Purchase Financing
1832.202-1 Policy.
(b)(6) Advance payment limitations do not apply to
expendable launch vehicle (ELV) service contracts (see 1832.402).
1832.206 Solicitation provisions and contract
clauses.
(g)(2) The installment payment rate shall be that
which is common in the commercial marketplace for the purchased item. If there is no commonly used rate, the
contracting officer shall determine the appropriate rate. In no case shall the rate exceed that
established in the clause at FAR
52.232-30.
Subpart 1832.4--Advance Payments for Non-Commercial Items
1832.402 General.
(e)(1)
The Director of the Headquarters Office of Procurement Contract Management
Division (Code HK) is the approval authority for all advance payments except
the following:
(A) The procurement officer is the approval
authority for non-fee bearing contracts with domestic entities when the
cumulative contract value is $25,000,000 or less, and for all increases to such
contracts over $25,000,000 previously approved by the Headquarters Office of
Procurement as long as the advance payment amount outstanding at any time is
not increased.
(B) The contracting officer is the approval
authority for the following actions. In these cases, a findings and
determination (see FAR 32.410)
is not required.
(a) Small Business Innovation
Research (SBIR) and Small Business Technology Transfer (STTR) Phase I
contracts. A class deviation has been
signed authorizing use of advance payments on these contracts. The contracting officer shall annotate the
contract file that the deviation is on file at the NASA Headquarters Office of
Procurement (Code HK).
(b)
Expendable launch vehicle (ELV) service contracts. 42 U.S.C. 2459c authorizes
advance payments for these contracts. The contracting officer shall document
the contract file with the rationale for approving the use of advance payments.
(e)(2) All advance payment authorization requests,
except those authorized by 1832.402(e)(1)(B), shall be coordinated with the
installation Deputy Chief Financial Officer.
1832.406 Letters of credit.
(b)(1) Each installation is considered a contracting
agency for the purposes of this requirement.
1832.407 Interest.
(d)(1) Advance payments without interest are
authorized.
1832.409 Contracting officer action.
1832.409-1 Recommendation
for approval.
1832.409-170 NASA procedure for approval.
In
addition to the items listed in FAR
32.409-1, requests for Headquarters approval of advance
payments (see 1832.402(e)(1)) shall include the following information:
(a) Name of the cognizant NASA Headquarters
program or staff office;
(b) Name and phone number of the contracting
officer or negotiator;
(c) A copy of the proposed advance payments
clause;
(d) If a profit/fee is contemplated, the factors
considered in determining the profit/fee (see 1815.404-470);
(e) Information justifying the adequacy of
security to cover the maximum advance payment amount at any time outstanding.
1832.410 Findings, determination, and authorization.
(b) Generally, the format in FAR 32.410 should be used, tailored as follows:
(i) In format subparagraph (a)(2), use the phrase
"Advance payments (in an amount not to exceed $.….... at any time
outstanding)" in all determinations and findings. The phrase means the maximum unliquidated
dollar amount a contractor would need in advance payments at any point in time
for the particular contract. The amount
would not usually be the full contract value.
The amount inserted should be based on an analysis of the contractor's
financing needs (monthly or other appropriate period) for the specific contract
involved.
(ii) In the second sentence of format subparagraph
(a)(4), delete the reference to a special financial institution account if no special financial
institution account is required.
(iii) Use format subparagraph (a)(6),
not (a)(7) or (a)(8).
(iv) At the end of format paragraph
(b), use "is in the public interest."
(v) In format paragraph (c), use the phrase “(the amount at any time outstanding)"
in all determinations and findings.
1832.412 Contract clause.
(e) The
contracting officer shall use Alternates IV and V when advance payments are
provided on Phase I
contracts of the Small Business Innovation Research (SBIR) or Small Business Technology
Transfer (STTR) programs.
(f) See
1832.412(e).
1832.412-70 NASA contract
clauses.
When the clause at FAR 52.232-12
or its Alternates II or V are used, insert the clause at 1852.232-70, NASA Modification of FAR 52.232-12.
Subpart 1832.5--Progress Payments Based on
Costs
1832.501 General.
1832.501-1 Customary progress payment rates.
(a) The customary progress payment rate for all
NASA contracts is 85 percent for large business, 90 percent for small business,
95 percent for small disadvantaged business, and 100 percent for Phase II
contracts in the Small Business Innovation Research (SBIR) and Small Business
Technology Transfer (STTR) programs.
The contracting officer shall insert the applicable percentage in
paragraphs (a) and (b) of the clause at FAR 52.232-16.
1832.501-2 Unusual progress payments.
The Director of the Headquarters Office of
Procurement Contract Management Division (Code HK) is the approval authority
for the use of unusual progress payments.
1832.502 Preaward matters.
1832.502-2 Contract finance office clearance.
The Director of the Headquarters Office of
Procurement Contract Management Division (Code HK) is the approval authority
for the actions at FAR 32.502-2,
except the Assistant Administrator for Procurement (Code HK) is the approval
authority for any deviations addressed in FAR 32.502-2(b).
1832.502-4 Contract clauses.
1832.502-470 NASA contract clause.
The
contracting officer may insert a clause substantially as stated at 1852.232-82, Submission of Requests for Progress Payments, in
fixed-price solicitations and contracts that provide for progress
payments. The recipient of the requests
and number of copies may be changed as required.
1832.503 Postaward matters.
1832.503-5 Administration of progress payments.
(c)(i) If the contractor requests it and the
contracting officer approving individual progress payments agrees, the
administration of progress payments may be based on the overall contract
agreement. Under this method, the
contractor must include a supporting schedule with each request for a progress
payment. The schedule should identify
the costs applicable to each order.
(ii) The contracting officer may treat a group of
orders as a single unit for administration of progress payments if each order
in the group is subject to a uniform liquidation rate and under the
jurisdiction of the same payment office.
1832.504 Subcontracts.
(c) Unusual progress payments to subcontractors
shall be approved in accordance with 1832.501-2.
Subpart 1832.7--Contract Funding
1832.702 Policy.
1832.702-70 NASA policy.
(a)
Cost-reimbursement contracts may be incrementally funded only if all the
following conditions are met:
(1)
The total value of the contract (including options as defined in FAR Subpart
17.2) is--
(i) $500,000
or more for R&D contracts under which no supplies are deliverable; or
(ii) $1,000,000
or more for all other contracts.
(2)
The period of performance exceeds one year.
(3) The funds are not available to fund
the total contract value fully at award.
(4)
Initial funding of the contract is $100,000 or more.
(b) Fixed-price contracts, other than those
for research and development, shall not be incrementally funded.
(c) (1) Fixed-price contracts for research and
development may be incrementally funded if the conditions of 1832.702-70(a)(1)
through (4) are met and the initial funding of the contract is at least 50
percent of the total fixed price.
(2) Incrementally funded fixed-price
contracts shall be fully funded as soon as adequate funding becomes available.
(d) Except
for a modification issued to fully fund a contract, incremental funding
modifications shall not be issued for amounts totaling less than $25,000.
(e) Except for a modification issued to close out
a contract, modifications deobligating funds shall not be issued for amounts
totaling less than $25,000.
(f)
The procurement officer, with the concurrence of the installation Comptroller,
may waive any of the conditions set forth in paragraphs 1832.702-70(a) through
(e). The procurement officer shall
maintain a record of all such approvals during the fiscal year.
(g) A
class deviation from the conditions set forth in paragraphs 1832.702-70(a)
through (e) exists to permit incremental funding of contracts under Phase II of
the Small Business Innovation Research (SBIR) and Small Business Technology
Transfer (STTR) programs. This
deviation exists with the understanding that the contracts will be fully funded
when funds become available.
1832.704 Limitation of cost or funds.
1832.704-70 Incrementally funded fixed-price contracts.
(a) Upon
receipt of the contractor's notice under paragraph (c)(1) of the clause at 1852.232-77,
Limitation of Funds (Fixed-Price Contract), the contracting officer shall
promptly provide written notice to the contractor that the Government is
--
(1) Allotting additional funds in a specified
amount for continued performance;
(2)
Terminating the contract; or
(3) Considering
whether to allot additional funds; and
(i) The contractor is entitled to stop work in
accordance with paragraph (b) of the clause at 1852.232-77, Limitation of
Funds; and
(ii)
Any costs expended beyond the amount specified in paragraph (a) of the clause
at 1852.232-77, Limitation of Funds, are incurred at the contractor's
risk.
(b) Upon determining that the contract will
receive no further funds, the contracting officer shall promptly give notice of
the Government's decision and terminate for the convenience of the Government.
1832.705 Contract clauses.
1832.705-2 Clauses for limitation of cost or funds.
1832.705-270 NASA clauses for limitation
of cost or funds.
(a) The contracting officer shall insert the
clause at 1852.232-77, Limitation of Funds (Fixed-Price Contract), in
solicitations and contracts for fixed-price incrementally funded research and
development.
(b) The contracting officer shall insert a clause
substantially as stated at 1852.232-81, Contract Funding, in Section B of
solicitations and contracts containing the clause at FAR 52.232-22,
Limitation of Funds. Insert the amounts
of funds available for payment, the items covered, and the applicable period of
performance. The amount obligated for
fee in paragraph (b) of the clause should always be sufficient to pay fee
anticipated to be earned for the work funded by the amount in paragraph (a) of
the clause.
Subpart 1832.9--Prompt
Payment
1832.906 Contract
financing payments.
(a) Except
as authorized in 1832.908, it is NASA’s policy to make contract financing
payments on the 30th day after the designated billing office has
received a proper request. However, the due date for making contract
financing payments for a specific contract may be earlier than the 30th day,
but not earlier than 7 days, after the designated billing office has received a
proper request, provided that:
(i) The contractor provides consideration whose value
is determined to be greater than the cost to the United States Treasury of
interest on funds paid prior to the 30th day, calculated using the Current Value of Funds Rate published annually in the Federal Register
(subject to quarterly revision);
(ii)
The contracting officer approves
the payment date change, with the concurrence of the installation Financial
Management Officer; and
(iii)
The contract file includes
documentation regarding the value of the consideration and the analysis
determining that value.
1832.908 Contract clauses.
(c)(3)
When the clause at FAR 52.232-25, Prompt Payment, is used in such
contracts with the Canadian Commercial Corporation (CCC), insert "17th"
in lieu of "30th" in paragraphs (a)(1)(i)(A), (a)(1)(i)(B), and (a)(1)(ii).
Subpart 1832.10--Performance-Based
Payments
1832.1001 Policy.
(a)(i) In determining whether performance-based
payments are practical in competitive negotiated acquisitions, the contracting
officer should consider the procedural impacts
(e.g., proposal evaluation complications, longer evaluations,
elimination of the potential for award without discussions, increased proposal
information requirements) and the impact on small business competitiveness.
(ii) The contracting officer must obtain approval
from the Director of the Headquarters Office of Procurement Contract Management
Division (Code HK) to use performance-based payments in competitive negotiated
solicitations under $50M. The request
for approval must include an assessment of the practicality of using
performance-based payments, as well as the proposed performance-based payments
evaluation approach (see
1832.1004(e)(1)(ii)).
1832.1004 Procedures.
(a) See 1815.201(c)(6)(E) for
establishing performance bases and payment terms in competitive negotiated
acquisitions.
(e)(1)(ii) Use of the price adjustment evaluation
technique may require obtaining and analyzing proposal information that is
normally not required in NASA firm-fixed-price competitions (see 1815.403-3). When
using performance-based payments in competitive negotiated acquisitions under
$50 million, contracting officers should consider the use of alternative
evaluation methods, e.g., qualitative evaluation under Mission Suitability or
another appropriate factor.
1832.1005 Contract clauses.
(a) If the contract is for launch services, the
contracting officer shall delete paragraph (f) of the clause at FAR 52.232-32 in accordance with 1832.1009.
(b)(2) Contracting officers shall not use Alternate I
in competitive negotiated acquisitions under $50 million, unless approval has
been obtained to use performance-based payments (see 1832.1001(a)(ii)).
1832.1009 Title.
In
accordance with 42 U.S.C. 2465d, NASA shall not take title to launch vehicles
under contracts for launch services unless one of the exceptions in the law
applies. However, the law does not
eliminate NASA's right to take title to other property acquired or produced by
the contractor under a contract containing a title provision.
Subpart 1832.11--Electronic Funds Transfer
1832.1110 Solicitation
provision and contract clauses.
(a)(1)
NASA does not use the Central Contractor Registration. Use the clause at FAR 52.232-34, Payment by
Electronic Funds Transfer--Other than Central Contractor Registration.
(b) In
accordance with FAR 32.1106(b), the use of
a nondomestic EFT mechanism is authorized.
When a nondomestic EFT mechanism is used, the contracting officer shall
replace the paragraph at FAR 52.232-34(c) with a
description of the EFT mechanism that will be used for the contract.
(c) The
payment office shall be the designated office for receipt of contractor EFT
information for all NASA contracts.
