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Procurement Notice

National Aeronautics and

Space Administration

Washington, DC 20546

**PN 04-15**

**June 7, 2006**

**ELIMINATION OF DOD DELEGATION ASSESSMENT REPORT**

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

***ACQUISITIONS AFFECTED BY CHANGES***:  None.

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

***CLAUSE CHANGES***:  None.

***PARTS AFFECTED***:  Part 1842.

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

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

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

 

 Tom Luedtke

Assistant Administrator for Procurement

 

Enclosures

 

**DISTRIBUTION:**

**PN List**

PART 1842

CONTRACT ADMINISTRATION AND AUDIT SERVICES

**TABLE OF CONTENTS**

**SUBPART 1842.1 CONTRACT AUDIT SERVICES**

1842.101 Contract audit responsibilities.

1842.102 Assignment of contract audit services.

1842.102-70 Review of administration and audit services.

1842.170 Assignment of NASA personnel at contractor plants.

**SUBPART 1842.2 CONTRACT ADMINISTRATION SERVICES**

1842.202 Assignment of contract administration.

1842.202-70 Retention of contract administration.

1842.270 Contracting officer technical representative (COTR)
delegations.

1842.271 NASA clause.

**SUBPART 1842.3 CONTRACT ADMINISTRATION OFFICE FUNCTIONS**

1842.302 Contract administration functions.

**SUBPART 1842.5 POSTAWARD ORIENTATION**

1842.503 Postaward conferences.

**SUBPART 1842.7** **INDIRECT COST RATES**

1842.705 Final indirect cost rates.

1842.705-1 Contracting officer determination procedure.

1842.708 Quick-closeout procedure.

1842.708-70 NASA Quick-closeout procedure.

**SUBPART 1842.8 DISALLOWANCE OF COSTS**

1842.803 Disallowing costs after incurrence.

**SUBPART 1842.12 NOVATION AND CHANGE-OF-NAME AGREEMENTS**

1842.1203 Processing agreements.

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

behalf of NASA.

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

1842.1305 Contract clauses.

**SUBPART 1842.15 CONTRACTOR PERFORMANCE INFORMATION**

1842.1501 General.

1842.1502 Policy.

1842.1503 Procedures.

**SUBPART 1842.70 ADDITIONAL NASA CONTRACT CLAUSES**

1842.7001 Observance of legal holidays.

1842.7002 Travel outside of the United States.

1842.7003 Emergency medical services and evacuation.

**SUBPART 1842.71 SUBMISSION OF VOUCHERS**

1842.7101 Submission of vouchers.

**SUBPART 1842.72 NASA CONTRACTOR FINANCIAL MANAGEMENT**

**REPORTING**

1842.7201 General.

1842.7202 Contract clause.

**SUBPART 1842.73 AUDIT TRACKING AND RESOLUTION**

1842.7301 NASA external audit follow-up system.

**SUBPART 1842.74 EARNED VALUE MANAGEMENT**

1842.7401 Earned Value Management Systems (EVMS).

1842.7402 Solicitation provisions and contract clauses.

PART 1842

**CONTRACT ADMINISTRATION AND AUDIT SERVICES**

## Subpart 1842.1\--Contract Audit Services

**1842.101** **Contract audit responsibilities.**

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

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

**1842.102 Assignment of contract audit services.**

**1842.102-70 Review of administration and audit services.**

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

**1842.170 Assignment** **of** **NASA** **personnel** **at**
**contractor** **plants.**

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

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

\(ii\) The contract administration services to be performed.

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

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

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

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

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

## Subpart 1842.2\--Contract Administration Services

**1842.202 Assignment** **of** **contract** **administration.**

\(b\) *Withholding normal functions*.

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

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

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

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

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

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

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

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

**(H)** Consent to placement of subcontracts under FAR 42.302(a)(51).
(See
[1844.202-1(a)](http://www.hq.nasa.gov/office/procurement/regs/1844.htm#1844.202)).

[(d)](http://www.hq.nasa.gov/office/procurement/regs/1844.htm#1844.202)
*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.