![](media/image1.wmf){width="0.8243055555555555in"
height="0.6888888888888889in"} Procurement Notice

National Aeronautics and

Space Administration

Washington, DC 20546

##  PN 97-71

> **May 22, 2002**

## CONFORMANCE WITH FACS 01-01, 01-02 AND 01-06; AND

## MISCELLANEOUS ADMINISTRATIVE AND TECHNICAL REVISIONS

***BACKGROUND:*** This PN revises the NASA FAR Supplement to conform
with FAR changes made by FAC's 01-01, 01-02, and 01-06; and to make
editorial and miscellaneous changes dealing with NASA internal and
administrative matters.

Item IV of FAC 01-01 amended various FAR subparts and clauses to
implement recent statutory and regulatory changes relating to veterans'
employment opportunities and reporting. Item II of FAC 01-02 amended
various FAR subparts to implement Executive Order 13123 of June 3, 1999,
Greening the Government through Efficient Energy Management. Item III of
FAC 01-02 amended various FAR subparts and clauses to reflect changes to
the Office of Management and Budget (OMB) prompt payment requirements
and clarify existing FAR prompt payment coverage. Item V of FAC 01-06
amended various FAR subparts to rewrite procurement integrity coverage
in plan language. This final rule makes changes to the NFS Parts 1803,
1811, 1822, 1823, and 1832 necessary to conform to the changes in FACs
01-01,01-02, and 01-06. Additional changes dealing with NASA internal
and administrative matters included in this rule clarify the approval
authority for letter contracts; that "instrument" means the award
document when referring to contracts, grants, cooperative agreements, or
other agreements; and that term/level-of-effort, time-and-materials and
labor hour contracts are not considered performance based contracts
(PBC). Changes are made to Subparts 1806.3 and 1819.70 to delete text
duplicative of the FAR. Changes are made to clauses in Part 1852 to
identify optional (though preferable) forms for submission of
information about technology innovations under NASA contracts and to
identify the web site where these forms are available. Editorial changes
are made throughout the NFS to reflect title changes. Lastly, technical
amendments are made to Subpart 1804.74 and Part 1852 to update url
listings.

***ACTION REQUIRED BY CONTRACTING OFFICERS***: All solicitations issued
after

May 22, 2002, must include the revised clauses if applicable.
Solicitations issued before

May 22, 2002, may be amended to include the revised clauses if including
it would not unduly delay the acquisition.

***Clause/PROVISION Changes:*** This PN makes the following clause
changes:

\(a\) 1852.204-74, Central Contractor Registration, in paragraph (d) the
url has been updated;

\(b\) 1852.227-11, Patent Rights\--Retention by the Contractor (Short
Form), the text has been revised for clarity and to indicate NASA's
preference for contractor use of either the electronic or paper version
of NASA Form 1679, Disclosure of Invention and New Technology (Including
Software) to disclose subject inventions;

\(c\) 1852.227-70, New Technology, paragraphs (e)(3) through (e)(5) are
redesignated as

(e)(4) through (e)(6) respectively; and a new paragraph (e)(3) is added
to indicate NASA's preference for contractor use of either the
electronic or paper version of NASA Form 1679, Disclosure of Invention
and New Technology (Including Software) to disclose reportable items;

\(c\) 1852.235-72, Instructions for Responding to NASA Research
Announcements, in the second sentence of paragraph (a)(4), the word
"award" is added immediately after the word "appropriate"; and

\(d\) The title "Associate Administrator" has been changed to "Assistant
Administrator" in 1852.233-70, Protests to NASA.

***PARTS AFFECTED:*** Changes are made in Parts 1801 through 1809, 1811,
1812, 1815 through 1817, 1819, 1822, 1823, 1825, 1828 through 1830,
1832, 1833, 1835, 1837, 1842, 1845, 1848 through 1850, and 1852.

***REPLACEMENT PAGES:*** You may use the enclosed pages to replace Part
1801, Part 1802, Part 1803, 4:3, 4:4, 4:11, 4:12, 4:13, 4:14, 5:3, 5:4,
6:3, 6:4, 6:5 (page 6:6 is removed), 7:5, 7:6, 8:5, 8:6, 9:3, 9:4, 9:5,
9:6, Part 1811, Part 1812, 15:3, 15:4, 15:11, 15:12, 15:29, 15:30, 16:1,
16:2, 16:11, 16:12, 16:13, 17:1, 17:2, 17:3, 17:4, 19:1, 19:2, 19:3,
19:4, 19:5, 19:6, 19:7, 19:8, Part 1822, Part 1823, 25:1, 25:2, 28:3,
28:4, 28:5, Part 1829, 30:1, 30:2, Part 1832, 33:1, 33:2, 35:1, 35:2,
35:3, 35:4, Part 1837, 42:3, 42:4, 45:5, 45:6, 45:7, 45:8, 45:9, 45:10,
Part 1948, 49:3, 49:4, Part 1850, 52:5, 52:6, 52:31, 52:32, 52:33,
52:34, 52:35, 52:36, 52:37, 52:38, 52:39, 52:40, 52:41, 52:42, 52:57,
52:58, 52:61, 52:62, 52-91, 52-92, 52-93, 52-94, 52-95, and 52-96.

***TYPE OF RULE AND PUBLICATION DATE:*** This PN was published as a
final rule in the Federal Register (67 FR 30602 - 30604) on May 7, 2002.

***HEADQUARTERS CONTACT:*** Celeste Dalton, Code HK, (202) 358-1645,
e-mail: [cdalton@hq.nasa.gov](../cdalton@hq.nasa.gov).

R. Scott Thompson

Director, Contract Management Division

Enclosures

PART 1801

**FEDERAL ACQUISITION REGULATIONS SYSTEM**

**TABLE OF CONTENTS**

1801.000 Scope of part.

# SUBPART 1801.1 PURPOSE, AUTHORITY, ISSUANCE

1801.103 Authority.

1801.104 Applicability.

1801.105 Issuance.

1801.105-1 Publication and code arrangement.

1801.105-2 Arrangement of regulations.

1801.106 OMB approval under the Paperwork Reduction Act.

**SUBPART 1801.2 ADMINISTRATION**

1801.270 Amendment of the NFS.

1801.271 NASA procedures for FAR and NFS changes.

1801.272 Procurement Information Circulars.

**SUBPART 1801.3 AGENCY ACQUISITION REGULATIONS**

1801.301 Policy.

1801.303 Publication and codification.

**SUBPART 1801.4 DEVIATIONS FROM THE FAR**

1801.400 Scope of subpart.

1801.471 Procedure for requesting deviations.

**SUBPART 1801.6 CAREER DEVELOPMENT, CONTRACTING AUTHORITY, AND
RESPONSIBILITIES**

1801.601 General.

1801.602-3 Ratification of unauthorized commitments.

1801.603 Selection, appointment, and termination of appointment.

1801.603-2 Selection.

1801.670 Delegations to contracting officer\'s technical representatives

(COTRs).

**SUBPART 1801.7 DETERMINATIONS AND FINDINGS**

1801.707 Signatory authority.

1801.770 Legal review.

**PART 1801**

**FEDERAL ACQUISITION REGULATIONS SYSTEM**

**1801.000 Scope of part.**

This part sets forth general informa­tion about the National Aeronautics
and Space Administration (NASA) Federal Acquisition Regulation (FAR)
Supplement, also referred to as the NFS.

**Subpart** **1801.1\--Purpose, Authority, Issu­ance**

**1801.103 Authority.**

\(a\) Under the following authorities, the Ad­minis­tra­tor has delegated
to the Assistant Administrator for Procurement authori­ty to prepare,
issue, and main­tain the NFS:

**(i)** The National Aeronautics and Space Act of 1958 (Pub. L. 85-568;
42 U.S.C. 2451 et seq.).

**(ii)** 10 U.S.C. chapter 137.

**(iii)** Other statutory authority.

**(iv)** FAR Subpart 1.3.

**1801.104 Applicability.**

The NFS ap­plies to all acquisitions as defined in FAR Part 2 ex­cept
those express­ly excluded by the FAR or this regulation.

**1801.105 Issuance.**

**1801.105-1 Publication and code arrange­ment.**

\(a\) The single official NASA-maintained version of the NFS is on the
Internet (<http://www.hq.nasa.gov/office/procurement/regs/nfstoc.htm>).

\(b\) The NFS is issued as chapter 18 of title 48, CFR.

**1801.105-2** **Arrangement of regulations.**

(b)(1)**(A)** Numbering of NFS text imple­menting the FAR shall be the
same as that of the related FAR text, except when the NFS coverage
exceeds one para­graph. In such case the NFS text is num­bered by skipping
a unit in the FAR 1.105-2(b)(2) pre­scribed numbering sequence. For
exam­ple, two paragraphs implementing FAR 1.105-2(b)(1) are numbered
1801.105-2(b)(1)(A) and (B), rather than (1)(i) and (ii). Further
subdivision of the NFS imple­menting paragraphs would follow the
pre­scribed sequence in FAR 1.105(b)(2).

**(B)** NFS text that supplements the FAR part is num­bered the same as
its FAR counterpart with the addi­tion of a number 70 and up. For
example, NFS supple­ment of FAR subsection 1.105-3 is numbered
1801.105-370. Sup­plemental text ex­ceeding one para­graph is numbered
using the FAR 1.105-2(b)(2) prescribed numbering sequence with­out
skipping a unit.

\(2\) Subdivision numbering below the fourth level repeats the numbering
sequence using itali­cized letters and numbers.

**1801.106 OMB approval under the Paper­work Reduction Act.**

**(1)** *NFS requirements.* The following OMB control numbers apply:

  ---------------------------------- ------------------------------------
  **NFS Segment**                    **OMB Control Number**

  1804.470                           2700-0098

  1804.74                            2700-0097

  1819                               2700-0073

  1819.72                            2700-0078

  1827                               2700-0052

  1831                               2700-0080

  1843                               2700-0054

  1843.71                            2700-0094

  NF 533                             2700-0003

  NF 1018                            2700-0017
  ---------------------------------- ------------------------------------

**(2)** *Solicitations and contracts.* Various require­ments in a
solicitation or contract, generally in the statement of work, are not
tied to specific para­graphs cleared in para­graph (1) of this section,
yet require infor­mation collection or recordkeeping. The following OMB
control numbers ap­ply to these requirements: 2700-0086 (acquisitions up
to \$25,000), 2700-0087 (solicitations that may result in bids or
proposals not exceed­ing \$500,000), 2700-0085 (solicita­tions that may
result in bids or propos­als exceeding \$500,000), 2700-0088 (con­tracts
not exceed­ing \$500,000), and 2700-0089 (contracts exceed­ing \$500,00­0).

**Subpart** **1801.2\--Administration**

**1801.270 Amendment of the NFS.**

\(a\) The NFS is amended by publishing changes in the Federal Register.
These changes are then incorporated into the NASA-maintained Internet
version of the NFS through

Procure­ment Notices (PNs). PNs are numbered consecu­tively, prefixed by
the last two digits of the calendar year of issuance of the current
edition of the NFS.

\(b\) Compliance with a revision to the NFS shall be in accor­dance with
the PN containing the revision. Unless otherwise stated, solicita­tions
that have been issued, and bilateral agree­ments for which negotiations
have been completed, before the receipt of new or revised contract
clauses need not be amend­ed to include the new or revised clauses if
including them would unduly delay the acquisition.

**1801.271 NASA procedures for FAR and NFS changes.**

\(a\) Informal suggestions for improving the NFS, includ­ing correction
of errors, should be directed to the Headquarters Office of Procurement
(Code HK).

(b)(1) Formal requests for changes to the FAR or the NFS should be
written and contain (i) a descrip­tion of the problem the suggested
revision is de­signed to cure, (ii) the revision in the form of a
marked-up copy of the current FAR or NFS lan­guage or the text of any
additional language, (iii) the consequences of making no change and the
benefits to be expected from a change, and (iv) any other information
necessary for understanding the situa­tion, such as relationship between
FAR and NFS cover­age, legal opinions, coordination with other offices,
and existing agreements.

\(2\) Formal requests for FAR and NFS changes should be sent to Code HK.
Re­quests from Headquar­ters offices should originate at the division
level or higher, while installation requests should be signed at the
procurement officer or higher level.

**1801.272 Procurement Information Circulars.**

\(a\) The Procurement Information Cir­cu­lar (PIC) is used for internal
dissemina­tion of procure­ment-related information and direc­tives not
suitable for inclusion in the NFS. Code HK is responsible for issuing
PICs.

\(b\) PICs are numbered on a calendar year basis, beginning with number
1, pre­fixed by the last two digits of the year.

**Subpart** **1801.3\--Agency Acquisi­tion Regu­lations**

**1801.301 Policy.**

(a)(2) Heads of NASA field installations may pre­scribe policies and
procedures that do not have a signifi­cant effect beyond the internal
operating proce­dures of their installations. All other poli­cies,
proce­dures, and solicitation and contract provi­sions and clauses must be
for­warded to the Head­quar­ters Office of Procurement (Code HK) for
approval in accor­dance with 1801.271(b).

\(b\) **(i)** 41 U.S.C. 418b requires publica­tion of NFS changes for
public comment where there will be a significant effect beyond the
internal oper­ating procedures of the agency or a signifi­cant cost or
adminis­trative impact on con­tractors or offerors. Howev­er, it does not
define \"sig­nifi­cant effect beyond the internal operat­ing proce­dures\"
or \"signifi­cant cost or ad­minis­trative im­pact.\" Exam­ples of policies
or procedures that fall in either of these cate­gories are:

**(A)** A contract clause requiring con­trac­tors to take precautions to
avoid injury to Flori­da mana­tees, which have been desig­nated as an
endangered species, has a sig­nificant cost impact for contractors who
must obtain protective devices for boat propel­lers and take other safety
actions.

**(B)** A contract clause requiring con­trac­tors to follow the
Government\'s holiday sched­ule, thereby disallowing premium pay for work
on contractor-designated holidays, will have an effect outside the
internal operating procedures of the agency.

**(C)** A contract clause requiring con­trac­tors to segregate costs by
appropriations will affect the contractor\'s internal accounting system
and have a significant impact.

**(D)** Requiring contractor compliance with NASA\'s Space
Transportation System Per­sonnel Reliability Program will have an effect
outside the internal operating proce­dures of the agency.

**(ii)** In contrast, the following would not have to be publicized for
public comment:

**(A)** Security procedures for identify­ing and badging contractor
personnel to obtain access at a NASA installation.

**(B)** A one-time requirement in a con­struc­tion contract for the
contractor to develop a place­ment plan and for inspection prior to any
concrete being placed. (This is part of the specification or state­ment
of work.)

**(C)** A policy that requires the NASA instal­lation to maintain copies
of unsuccess­ful offers.

**1801.303 Publication and codification.**

\(a\) Part, subpart, and section numbers 70 through 89 are reserved for
NFS supplemen­tary material for which there is no FAR counterpart.

**Subpart** **1801.4\--Deviations from the FAR**

**1801.400 Scope of subpart.**

This subpart prescribes the policies and procedures for authorizing
deviations from the FAR and the NFS.

**1801.471 Procedure for requesting devia­tions.**

\(a\) Requests for authority to deviate from the FAR or the NFS shall be
sub­mitted by the Procurement Officer to the Headquar­ters Office of
Procurement (Code HS).

\(b\) Each request for a deviation shall contain, as a minimum \--

\(1\) Identification of the FAR or the NFS re­quirement from which a
devia­tion is sought;

\(2\) A full description of the deviation, the cir­cum­stances in which it
will be used, and the specific contract action(s) to which it applies;

\(3\) A description of its intended effect;

\(4\) A statement as to whether the devia­tion has been requested
previously and, if so, the circum­stances of the previous re­quest;

\(5\) Identification of the contrac­tor(s) and the con­tract(s) affected,
includ­ing dollar val­ue(s);

\(6\) Detailed reasons supporting the re­quest, including any pertinent
back­ground information; and

\(7\) A copy of counsel\'s concurrence or com­ments.

\(c\) In addition to the information required by 1801.471(b), requests
for individual devi­a­tions from FAR cost prin­ciples under FAR 31.101
should include a copy of the contractor\'s request for cost allowance.

**Subpart** **1801.6\--Career Development, Contracting Authority, and
Responsibili­ties**

**1801.601 General.**

The authority to contract for authorized supplies and services is
delegat­ed to the Assistant Administrator for Procurement and
installation officials by NPD 5101.32.

**1801.602-3 Ratification of unauthorized commit­ments.**

\(b\) *Policy*. Individuals making unautho­rized commitments may be
subject to disci­plinary action, and the issue may be re­ferred to the
Office of Inspector General.

\(c\) (7) The authority in FAR 1.602-3 may be exercised only when ‑‑

**(A)** The Government employee who made the unauthorized commitment, or
his/her supervisor, if appropriate, initiates a pro­curement request in
accordance with 1804.7301.

**(B)** The procurement request and/or ac­compa­nying documentation
iden­tifies the individual who made the unautho­rized commitment, and
includes a statement signed by the individual that explains why normal
acquisition procedures were not fol­lowed, explains why the firm was
select­ed, lists other sources considered, describes the work, and
esti­mates or states the agreed price. If the Govern­ment representative
who made the unautho­rized commit­ment is no longer available, appropriate
program personnel shall provide the information described in this
paragraph.

**(C)** The procurement request is submit­ted through the director of the
cogni­zant program office at the contracting activity, or compara­ble
official. In the procurement request, the director shall describe
measures taken to prevent the recur­rence of the unauthorized commitment.

**1801.603 Selection, appointment, and termi­nation of appointment.**

**1801.603-2 Selection.**

Normally, only GS-1102 and -1105 personnel with the proper training and
experi­ence may be appointed contracting officers and only when a valid
organizational need can be demonstrated.

**1801.670 Delegations to contracting officer\'s techni­cal
representatives (COTRs).**

A COTR delegation may be made only by the con­tracting officer cognizant
of that con­tract at the time the delegation is made. If the cognizant
contracting officer is absent, the delegation letter may be signed by a
war­ranted contracting officer at any level above the cognizant
contracting offi­cer. An individual COTR may have only the duties
specifically identi­fied in a writ­ten delegation to him or her by name
(i.e., COTR duties may not be delegated to a posi­tion) and has no
authority to exceed them. COTRs should be informed that they may be
personally liable for unauthorized commit­ments. Contracting officer
authori­ty to sign or authorize contractual instru­ments shall not be
dele­gated through a COTR designation or by any means other than a
contracting officer warrant.

**Sub­part** **1801.7\--Determinations and Find­ings**

**1801.707 Signatory authority.**

Signatory authority for determinations and findings (D&Fs) is specified
in the FAR or the NFS text for the associat­ed subject matter. The
Administrator may make any of the D&Fs that may be made by the Assistant
Administrator for Procurement or by a contracting officer.

**1801.770 Legal review.**

Each D&F, including class D&Fs, shall be reviewed by counsel for form
and legality before signa­ture by the approving authority.

PART 1802

**DEFINITIONS OF WORDS AND TERMS**

**TABLE OF CONTENTS**

1802.000 Scope of part.

**SUBPART 1802.1 DEFINITIONS**

1802.101 Definitions.

**PART 1802**

**DEFINITIONS OF WORDS AND TERMS**

**1802.000 Scope of part.**

Commonly used words and terms are defined in FAR Subpart 2.1. This Part
1802 gives NASA-specific meanings for some of these words and terms and
defines other words and terms commonly used in the NASA acquisition
process.

**Subpart 1802.1\--Definitions**

**1802.101 Definitions.**

**"Administrator"** means the Administrator or Deputy Administrator of
NASA.

**"Senior Procurement Executive"** means the Assistant Administrator or
Deputy Assistant Administrator for Procurement, Office of Procurement,
NASA Headquarters (Code H).

**"Contracting activity"** in NASA includes the NASA Headquarters
installation and the following field installations: Ames Research
Center, Dryden Flight Research Center, Glenn Research Center at Lewis
Field, Goddard Space Flight Center, Johnson Space Center, Kennedy Space
Center, Langley Research Center, Marshall Space Flight Center and
Stennis Space Center.

**"Head of the agency"** or **"agency head"** means the Administrator or
Deputy Administrator of NASA.

**"Head of the contracting activity"** means, for field installations,
the Director or other head and, for NASA Headquarters, the Director for
Headquarters Operations.

**"Procurement officer"** means the chief of the contracting office, as
defined in FAR 2.101.

**"NASA Acquisition Internet Service (NAIS)"** means the Internet
service (URL: http://procurement.nasa.gov) NASA uses to broadcast its
business opportunities, procurement regulations, and associated
information.

**PART 1803**\
**IMPROPER BUSINESS PRACTICES**\
**AND PERSONAL CONFLICTS OF INTEREST**

**TABLE OF CONTENTS**

**SUBPART 1803.1**     **SAFEGUARDS**\
1803.101                 Standards of conduct.\
1803.101-1             General.\
1803.101-2              Solicitation and acceptance of gratuities by
Government\
                                          personnel.\
1803.104                 Procurement integrity.\
1803.104-1              Definitions.\
1803.104-4              Disclosure, protection, and marking of
contractor bid or proposal

information and source selection information.\
1803.104-7            Violations or possible violations.

**SUBPART 1803.2      CONTRACTOR GRATUITIES TO GOVERNMENT**\
**                                          PERSONNEL**\
1803.203                 Reporting suspected violations of the
Gratuities clause.

**SUBPART 1803.3      REPORTS OF SUSPECTED ANTITRUST**\
**                                          VIOLATIONS**\
1803.303                  Reporting suspected antitrust violations.

**SUBPART 1803.5      OTHER IMPROPER BUSINESS PRACTICES**\
1803.502                  Subcontractor kickbacks.

**SUBPART 1803.6      CONTRACTS WITH GOVERNMENT EMPLOYEES**\
**                                          OR ORGANIZATIONS OWNED OR**\
**                                          CONTROLLED BY THEM**\
1803.602                  Exceptions.

**SUBPART 1803.7      VOIDING AND RESCINDING CONTRACTS**\
1803.704                  Policy.\
1803.705                  Procedures.

**SUBPART 1803.8      LIMITATION ON THE PAYMENT OF FUNDS TO**
**INFLUENCE FEDERAL TRANSACTIONS**\
1803.804                  Policy.\
1803.806                  Processing suspected violations.

**SUBPART 1803.70 IG HOTLINE POSTERS\
**1803.7000 Policy.\
1803.7001 Contract clause.

**PART 1803**\
**IMPROPER BUSINESS PRACTICES**\
**AND PERSONAL CONFLICTS OF INTEREST**

**Subpart ****1803.1\--Safeguards**

**1803.101   Standards of conduct.**

**1803.101-1   General.**\
  The statutory prohibitions and their application to NASA personnel are
discussed in the Standards of Ethical Conduct for Employees of the
Executive Branch, 5 CFR Part 2635, and the Supplemental Standards of
Ethical Conduct for Employees of the National Aeronautics and Space
Administration, 5 CFR Part 6901.  All NASA personnel involved in
acquisitions shall become familiar with these statutory prohibitions.
Any questions concerning them shall be referred to legal counsel.  In
addition to criminal penalties, the statutes provide that transactions
entered into in violation of these prohibitions are voidable (18 U.S.C.
218).

**1803.101-2   Solicitation and acceptance of gratuities by Government**
**personnel.**\
  Any suspected violations shall be reported promptly to the
installation\'s Office of Inspector General.

**1803.104   Procurement integrity.**

**1803.104-1   Definitions.**\
**   \"Agency ethics official\"** means for Headquarters, the General
Counsel and the Associate General Counsel for General Law, and for each
center, the Chief Counsel.

**1803.104-4   Disclosure, protection, and marking of contractor bid or
proposal information and source selection information.**\
   (a)  Government employees serving in the following positions are
authorized access to proprietary or source selection information, but
only to the extent necessary to perform their official duties.\
**            (i)  ** Personnel participating in source evaluation board
(SEB) procedures (see 1815.370) or personnel evaluating an offeror\'s or
bidder\'s technical or cost proposal under other competitive procedures,
and personnel evaluating protests.\
**            (ii)**  Personnel assigned to the contracting office.\
**            (iii)** The initiator of the procurement request (to
include the official having principal technical cognizance over the
requirement).\
**            (iv)** Small business specialists.\
**            (v) ** Personnel assigned to counsel\'s office.\
**            (vi)** Personnel assigned to the Defense Contract Audit
Agency and contract administration offices of the Department of
Defense.\
**            (vii)** Personnel responsible for the review and approval
of documents in accordance with the Master Buy Plan Procedure in Subpart
1807.71.\
**            (viii)** Other Government employees authorized by the
contracting officer.\
**            (ix) ** Supervisors, at any level, of the personnel listed
in paragraphs 1803.104-4(a)(i) through (viii).\
**            (x)  ** Duly designated ombudsman.

(c)**(i) **  The originator of information that may be source selection
information shall consult with the contracting officer or the
procurement officer, who shall determine whether the information is
source selection information. NASA personnel responsible for preparing
source selection information as defined in FAR 2.101 shall assure that
the material is marked with the legend in FAR 3.104-4(c) at the time the
material is prepared.\
**    (ii) ** Unless marked with the legend \"SOURCE SELECTION
INFORMATION \-- SEE FAR 2.101 and 3.104,\" draft specifications,
purchase descriptions, and statements of work are not considered source
selection information and may be released during a market survey in
order to determine the capabilities of potential competitive sources
(see FAR Subpart 7.1). All documents, once released, must remain
available to the public until the conclusion of the acquisition.

**1803.104-7  Violations or possible violations.**\
   (a)(1)  The Procurement Officer is the individual designated to
receive the contracting officer\'s report of violations.\
   (b)  The head of the contracting activity (HCA) or designee shall
refer all information describing an actual or possible violation to the
installation\'s counsel and inspector general staff and to the Assistant
Administrator for Procurement (Code HS).\
   (f)  When the HCA or designee determines that award is justified by
urgent and compelling circumstances or is otherwise in the interest of
the Government, then that official shall submit a copy of the
determination to the Assistant Administrator for Procurement (Code HS)
simultaneous with transmittal to the Administrator.

> **Subpart ****1803.2\--Contract or Gratuities to Government
> Personnel**

**1803.203   Reporting suspected violations of the Gratuities clause.**\
  Any suspected violations of the clause at FAR 52.203-3, Gratuities,
shall be reported to the installation\'s Office of Inspector General.

> **Subpart ****1803.3\--Reports of Suspected Antitrust Violations**

**1803.303   Reporting suspected antitrust violations.**\
  (b)**(i) ** When offers are received that, in the opinion of the
contracting officer, indicate possible antitrust violations, the
contracting officer shall report the circumstances to the General
Counsel, NASA Headquarters, through the Office of Procurement (Code HS).
Reports should not be submitted automatically but only when there is
reason to believe the offers may not have been arrived at independently.
These reports shall be submitted with conformed copies of bids or
proposals, contract documents, and other supporting data, and shall set
forth \--\
**                 (A) ** The noncompetitive pattern or situation under
consideration;\
**                 (B) ** Purchase experience in the same product or
service for a reasonable period (one or more years) preceding receipt of
the offers under consideration, including unit and total contract prices
and abstracts of bids;\
**                 (C) ** Community of financial interest among
offerors, insofar as it is known;\
**                 (D) ** The extent, if any, to which specification
requirements or patents restrict competition;\
**                 (E) ** Any information available about the pricing
system employed in offers believed to reflect noncompetitive practices;
and\
**                 (F) ** Any other pertinent information.\
**           (ii) ** Evidence of practices that, in the opinion of the
General Counsel, NASA Headquarters, may violate the antitrust laws shall
be forwarded to the Attorney General of the United States (see FAR
3.303).\
   (d)  The contracting officer shall submit the identical bid report
required by FAR 3.303(d) to NASA Headquarters, Office of Procurement
(Code HS). The report shall include the reasons for suspecting
collusion. Code HS shall forward a copy to the NASA Office of the
Inspector General.

**Subpart ****1803.5\--Other Improper Business Practices**

**1803.502   Subcontractor kickbacks.**\
   Contracting officers shall report suspected violations of the
Anti-Kickback Act in accordance with 1809.470.

> **Subpart ****1803.6\--Contracts with Government Employees or**\
> **Organizations Owned or Controlled by Them**

**1803.602   Exceptions.**\
   The Assistant Administrator for Procurement has been delegated the
authority to authorize an exception to the policy in FAR 3.601. The
Assistant Administrator for Procurement has redelegated this authority
to the heads of contracting activities (HCAs) for individual actions in
the aggregate of \$100,000 and below, inclusive of follow-on
acquisitions, with concurrence by the HCA\'s Office of Chief Counsel. 
All requests above the HCA\'s authority shall be forwarded to the
Assistant Administrator for Procurement (Code HS) for approval.

> **Subpart ****1803.7\--Voiding and Rescinding Contracts**

**1803.704   Policy.**\
   (a)  The Assistant Administrator for Procurement has been delegated
authority to void or rescind contracts when there is a final conviction
for violation of 18 U.S.C. 201-224 (Bribery, Graft and Conflicts of
Interest) relating to them.

**1803.705   Procedures.**\
  Procurement officers shall make reports to the Assistant Administrator
for Procurement (Code HS). The Assistant Administrator for Procurement
is responsible for the actions, notices, and decisions required by FAR
3.705(c), (d), and (e).

**Subpart ****1803.8\--Limitation on the Payment of Funds\
to Influence Federal Transactions**

**1803.804   Policy.**\
  Procurement officers shall forward one copy of each Disclosure of
Lobbying Activities (SF-LLL) furnished pursuant to FAR 3.803 to the
Office of Procurement (Code HS). The original shall be retained in the
contract file. Forms shall be submitted semi-annually by April 15th for

the six-month period ending March 31st, and by October 15th for the
period ending September 30th.

**1803.806   Processing suspected violations.**\
  The Assistant Administrator for Procurement (Code HS) is the
designated official to whom suspected violations of the Act shall be
referred.

**Subpart** **1803.70\--IG Hotline Posters**

**1803.7000 Policy.**

NASA requires contractors to display NASA hotline posters prepared by
the NASA Office of Inspector General on those contracts specified in
1803.7001, so that employees of the contractor having knowledge of
waste, fraud, or abuse, can readily identify a means to contact NASA\'s
IG.

**1803.7001 Contract clause.**

Contracting officers must insert the clause at 1852.203-70, Display of
Inspector General Hotline Posters, in solicitations and contracts
expected to exceed \$5,000,000 and performed at contractor facilities in
the United States.

1804.7401 Definitions.

1804.7402 Policy

1804.7403 Procedures.

1804.7404 Solicitation provisions and contract clauses.

# PART 1804

# ADMINISTRATIVE MATTERS

## 

## Subpart 1804.1\--Contract Execution

**1804.****103 Contract clause.**

The contracting officer shall include the clause at FAR 52.204-1**,**
Approval of Contract, in solicitations, contracts, and supplemental
agreements that require higher level approval. For actions requiring
Headquarters approval, insert \"NASA Assistant Administrator for
Procurement\" in the clause\'s blank space.

**1804.170 Contract effective date.**

\(a\) **\"Contract effective date\"** means the date agreed upon by the
parties for beginning the period of performance under the contract. In
no case shall the effective date precede the date on which the
contracting officer or designated higher approval authority signs the
document.

\(b\) Costs incurred before the contract effective date are unallowable
unless they qualify as precontract costs (see FAR 31.205-32) and the
clause prescribed at 1831.205-70 is used.

### Subpart 1804.2\--Contract Distribution

**1804.202 Agency distribution requirements.**

In addition to the requirements in FAR 4.201, the contracting officer
shall distribute one copy of each R&D contract, including the Statement
of Work, to the NASA Center for AeroSpace Information (CASI), Attention:
Document Processing Section, 7121 Standard Drive, Hanover, MD
21076-1320.

**1804.203 Taxpayer identification information.**

Instead of using the last page of the contract to provide the
information listed in FAR 4.203, NASA installations may allow
contracting officers to use a different distribution method, such as
annotating the cover page of the payment office copy of the contract.

### Subpart 1804.4\--Safeguarding Classified Information Within Industry

**1804.402 General.**

\(b\) NASA security policies and procedures are prescribed in NPD
1600.2A, NASA Security Policy; NPG 1600.6A, Communications Security
Procedures and Guidelines; NPG 1620.1, Security Procedures and
Guidelines; NPG 2810.1 and NPD 2810.1 Security of Information
Technology.

**1804.404-70  Contract clause.**

The contracting officer shall insert the clause at 1852.204-75, Security
Classification Requirements, in solicitations and contracts if work to
be performed will require security clearances. This clause may be
modified to add instructions for obtaining security clearances and
access to security areas that are applicable to the particular
acquisition and installation.

**1804.470 Security requirements for unclassified information technology
resources.**

**1804.470-1 Scope.**

This section implements NASA\'s acquisition‑related aspects of Federal
policies for assuring the security of unclassified automated information
resources

**1804.470-2 Policy.**

\(a\) NASA policies and procedures on security for automated information
technology are prescribed in [NPD
2810.1](http://nodis.hq.nasa.gov/Library/Directives/NASA-WIDE/Policies/Legal_Policies/N_PD_2810_1.html),
Security of Information Technology, and in NPG 2810.1, Security of
Information Technology. The provision of information technology (IT)
security in accordance with these policies and procedures, is required
in all contracts that include IT resources or services in which a
contractor must have physical or electronic access to NASA\'s sensitive
information contained in unclassified systems that directly support the
mission of the Agency. This includes information technology, hardware,
software, and the management, operation, maintenance, programming, and
system administration of computer systems, networks, and
telecommunications systems. Examples of tasks that require security
provisions include:

\(1\) Computer control of spacecraft, satellites, or aircraft or their
payloads;

\(2\) Acquisition, transmission or analysis of data owned by NASA with
significant replacement costs should the contractor's copy be corrupted;
and

\(3\) Access to NASA networks or computers at a level beyond that
granted the general public, e.g. bypassing a firewall.

\(b\) The contractor must not use or redistribute any NASA information
processed, stored, or transmitted by the contractor except as specified
in the contract.

**1804.470-3 Security plan for unclassified Federal Information
Technology systems.**

\(a\) The requiring activity with the concurrence of the Center Chief
Information Officer (CIO), and the Center Information Technology (IT)
Security Manager, must determine whether an IT Security Plan for
unclassified information is required.

\(b\) IT security plans must demonstrate a thorough understanding of NPG
2810.1 and NPD 2810.1 and must include, as a minimum, the security
measures and program safeguards planned to ensure that the information
technology resources acquired and used by contractor and subcontractor
personnel \--

\(1\) Are protected from unauthorized access, alteration, disclosure, or
misuse of information processed, stored, or transmitted;

\(2\) Can maintain the continuity of automated information support for
NASA missions, programs, and functions;

\(3\) Incorporate management, general, and application controls
sufficient to provide cost-effective assurance of the systems\'
integrity and accuracy;

\(4\) Have appropriate technical, personnel, administrative,
environmental, and access safeguards;

**1804.7101  Policy.**

\(a\) Contractual documents shall be numbered with approved prefixes and
serial numbers as prescribed in this subpart. If other identification is
required for center purposes, it shall be placed on the document in such
a location as to clearly separate it from the identification number.

\(b\) The identification number shall consist of not more than 11
alpha-numeric characters positioned as prescribed in this subpart and
shall be retained unchanged for the life of the particular instrument.

**1804.7102 Prefixes.**

\(a\) Approved prefixes are as follows:

+------------------------------+--------------------+------------------+
| **INSTALLATION**             | **CONTRACT         | **PURCHASE       |
|                              | PREFIX**           | ORDER**          |
|                              |                    |                  |
|                              |                    | **PREFIX**       |
+------------------------------+--------------------+------------------+
| Ames Research Center         | NAS 2              | A                |
+------------------------------+--------------------+------------------+
| Dryden Flight Research       | NAS 4              | E                |
| Center                       |                    |                  |
+------------------------------+--------------------+------------------+
| Glenn Research Center at     | NAS 3              | C                |
| Lewis Field                  |                    |                  |
+------------------------------+--------------------+------------------+
| Goddard Space Flight Center  | NAS 5              | S                |
+------------------------------+--------------------+------------------+
| Headquarters                 | NASW               | W                |
+------------------------------+--------------------+------------------+
| Lyndon B. Johnson Space      | NAS 9              | T                |
| Center                       |                    |                  |
+------------------------------+--------------------+------------------+
| John F. Kennedy Space Center | NAS10              | CC               |
+------------------------------+--------------------+------------------+
| Langley Research Center      | NAS 1              | L                |
+------------------------------+--------------------+------------------+
| George C. Marshall Space     | NAS 8              | H                |
| Flight Center                |                    |                  |
+------------------------------+--------------------+------------------+
| NASA Management Office-JPL   | NAS 7              | WO               |
+------------------------------+--------------------+------------------+
| John C. Stennis Space Center | NAS 13             | NS               |
+------------------------------+--------------------+------------------+

\(b\) The contract prefix shall be used for the following documents:

\(1\) Contracts, including letter contracts, indefinite-delivery
contracts, utilities contracts, leases of real property and renewals.

\(2\) Easements.

\(3\) Basic ordering agreements.

\(4\) Other written agreements involving payment or receipt of funds not
covered by 1804.7102(e).

\(c\) Contracts totally funded under reimbursable arrangements with the
Department of Energy shall use a DEN prefix instead of the NAS prefix
(e.g., DEN 8 for Marshall).

\(d\) Space Act agreements awarded under the authority of Section
203(c)(5) or 203(c)(6) of the Space Act shall use an NCA prefix instead
of the NAS prefix (e.g., NCA 8 for Marshall).

\(e\) The purchase order prefix shall be used for purchase orders
(including blanket purchase agreements) and requests to other Government
agencies to furnish supplies or services.

\(f\) Solicitations shall be numbered in accordance with installation
procedures, except that in all cases the identifying number shall begin
with the portion of the installation\'s contract prefix following "NAS."

\(g\) If a prefix is required for an installation or office not listed
in this subsection, a request for a prefix assignment shall be submitted
to the Headquarters Office of Procurement (Code HS).

**1804.7103 Serial numbers.**

\(a\) Installations shall number contracts and agreements identified in
1804.7102(b) serially by fiscal year. The serial number shall be five
digits beginning with a two-digit fiscal year identifier followed by a
three digits commencing with \"001\" and continuing in succession. For
example, the first contracts awarded by Ames Research Center in fiscal
year 1997 shall be numbered NAS 2 97001 and NAS 2 97002. Fiscal year
identification is optional for Space Act agreements.

\(b\) Serial numbers for purchase orders shall be assigned serially
without fiscal year identification. When the series of numbers exceeds
five digits (over 99,999), a new series shall be used, beginning the
series with number \"1\" and followed by the capital letter \"A.\"
Should additional series become necessary, they will be distinguished by
the capital letters \"B,\" \"C,\" and so forth, as may be required,
except that the letters \"I\" and \"O\" shall not be used.

**1804.7104 Modifications of contracts or agreements.**

\(a\) Modifications of definitive or letter contracts or agreements
shall (1) bear the same identification as the contract or agreement
being modified and (2) be numbered consecutively for each contract or
agreement, beginning with Modification Number 1, regardless of whether
the modification is accomplished by unilateral or bilateral action.
Except for termination notices, modifications shall be effected by the
use of Standard Form 30, Amendment of Solicitation/Modification of
Contract.

\(b\) Definitive contracts superseding letter contracts shall retain the
same contract number as that originally assigned to the letter contract.
Actions definitizing letter contracts are considered modifications and
shall be assigned modification numbers in accordance with paragraph (a)
of this subsection.

**Subpart** **1804.72\--Review and Approval of Contractual Instruments**

**1804.7200 Contract review by Headquarters.**

\(a\) Requests for approval of contracts and supplemental agreements by
the Assistant Administrator for Procurement shall be submitted to the
Headquarters Office of Procurement (Code HS) in sufficient time to allow
a minimum of 15 days for review.

\(b\) Each request for approval shall be accompanied by (1) five copies
of the contractual document, one of which has been executed by the
contractor and contracting officer, and (2) the official contract file
containing the appropriate documentation as set forth in FAR 4.803(a).
However, for the items specified in FAR 4.803(a)10, (11), and (12), the
contracting officer shall provide documentation pertaining only to the
successful offeror; and, in lieu of the items specified in FAR
4.803(a)(26)(ii) and (iii), the contracting officer shall provide an
index briefly describing the content of all previous modifications.

\(c\) The approval required under this section shall be made by
signature of the Assistant Administrator for Procurement on the
contract/supplemental agreement.

### Subpart 1804.73\--Procurement Requests

**1804.7301 General.**

\(a\) Except in unusual circumstances, the contracting office shall not
issue solicitations until an approved procurement request (PR),
containing a certification that funds are available, has been received.
However, the contracting office may take all necessary actions up to the
point of contract obligation before receipt of the PR certifying that
funds are available when -

\(1\) Such action is necessary to meet critical program schedules;

\(2\) Program authority has been issued and funds to cover the
acquisition will be available prior to the date set for contract award
or contract modification;

\(3\) The procurement officer authorizes such action in writing before
solicitation issuance; and

\(4\) The solicitation includes the clause at FAR 52.232-18,
Availability of Funds. The clause shall be deleted from the resultant
contract.

\(b\) The contracting office shall not issue either a draft or final
solicitation until a PR, either planning or final, has been received
that contains an NPG 7120.5 certification. That certification must be
made by the project or program office that initiated the PR, or the PR
approval authority when there is no project or program office. The
certification must state that either -

\(1\) The requested action is not in support of programs and projects
subject to the requirements of NPG 7120.5, or

\(2\) The requested action is in support of programs and projects
subject to the requirements of NPG 7120.5, and -

\(i\) All NPG 7120.5 required documentation is current and has been
approved; or

\(ii\) Authority to proceed without the required documentation has been
granted by the Chair of the Governing Program Management Council or
designee.

**Subpart** **1804.74\--Central Contractor Registration**

**1804.7400 Scope.**

This subpart prescribes policies and procedures for requiring contractor
registration in the DoD Central Contractor Registration (CCR) database.

**1804.7401 Definitions.**

**"Central Contractor Registration (CCR) database," "Data Universal
Numbering System (DUNS) number," "Data Universal Numbering System+4
(DUNS+4) number," "Commercial and Government Entity (CAGE) Code,"** and
**"Registered in the CCR database"** are defined in the clause at
1852.204-74, Central Contractor Registration.

**1804.7402 Policy.**

Prospective contractors must be registered in the CCR database, prior to
any award of a contract, purchase order, basic agreement, basic ordering
agreement, or blanket purchase agreement after March 31, 2001. This
policy applies to all types of awards except the

following:

\(a\) Purchases made with a Government-wide commercial purchase card.

\(b\) Awards made to foreign vendors for work performed outside of the
United States.

\(c\) Purchases under FAR 6.302-2, Unusual and Compelling Urgency.

**1804.7403 Procedures.**

\(a\) (1) The contracting officer must verify that the prospective
awardee is registered in the CCR database using either the Cage Code,
DUNS number or, if applicable, the DUNS+4 number, via the Internet at
http://www.ccr.gov or by calling toll free: 888-CCR-2423 (888-227-2423),
commercial: 616-961-5757.

\(2\) Verification of registration is not required for orders or calls
placed under contracts, basic agreements, basic ordering agreements, or
blanket purchase agreements in which vendor registration was verified at
the time of award of the contract or agreement.

\(b\) If the contracting officer determines that a prospective awardee
is not registered in the CCR database after March 31, 2001, the
contracting officer must \--

\(1\) If delaying the acquisition would not be to the detriment of the
Government, proceed to award after the contractor is registered;

\(2\) If delaying the acquisition would be to the detriment of the
Government, proceed to award to the next otherwise successful registered
offeror, with the written approval of the Procurement Officer; or

\(3\) If the offer results from an invitation for bids, determine the
offer to be non-responsive and proceed to award to the next otherwise
successful registered offeror.

\(c\) The contracting officer must protect against improper disclosure
of contractor CCR information.

**1804.7404 Solicitation provisions and contract clauses.**

Except as provided in 1804.7402, the contracting officer must use the
clause at 1852.204-74, Central Contractor Registration, in all
solicitations and contracts, including those for commercial items.

excluding unexercised options, of \$25 million or greater. This
threshold applies to new awards, contract modifications, and option
exercises, but not to incremental funding or cost overrun modifications.

**(A)** For undefinitized contract actions, the not-to-exceed (NTE) or
ceiling price value is the face value.

**(B)** For indefinite delivery, time and material, labor hour, and
similar contracts, the estimated amount of the basic contract is the
face value. Individual orders up to the face value shall not be
announced regardless of value. However, after the face value is reached,
any subsequent modifications or orders of \$25 million or greater must
be announced.

**(ii)** NASA Headquarters public announcement is also required for
award of a contract action with a value of less than \$25 million if the
contracting officer believes it to have Agency public information
implications.

**(iii)** Contractual instruments requiring Headquarters public
announcement shall not be distributed nor shall any source outside NASA
be notified of their status until the public announcement procedures in
1805.303-70 have been completed.

**1805.303-70 NASA Headquarters public announcement.**

\(a\) For those contract actions requiring Headquarters public
announcement in accordance with 1805.303, the contracting officer shall
furnish a draft news release including the following information,
through the installation Public Affairs Office, via facsimile
transmission to the Headquarters Office of Public Affairs, News and
Imaging Branch (Code PM):

\(1\) A brief description of the work, including identification of the
program and project;

\(2\) Identification of the contract action as either a new contract or
additional work or services under an existing contract;

\(3\) Contract type. For undefinitized contract actions, identify the
planned contract type of the definitized instrument;

\(4\) The dollar amount authorized for the instant action and the
estimated total cost of the contract if this is different. For
undefinitized contract actions, indicate the NTE or ceiling price
amount;

\(5\) Name and address (including zip code) of the contractor;

\(6\) Principal work performance locations;

\(7\) Names and addresses of any unsuccessful offerors.

\(b\) The information in paragraph (a) of this section shall be provided
to Code PM before transmitting a letter contract to a contractor for
signature. For actions other than letter contracts, the information
should be transmitted to Code PM after contractor signature, if
applicable, no later than 48 hours before the planned award.

\(c\) For contract actions requiring Headquarters approval in accordance
with 1804.72, the draft news release required by paragraph (a) of this
section shall be provided to the Headquarters Office of Procurement
(Code HS) with the request for approval. Code HS will forward the
information to Code PM after approval.

\(d\) Code PM will advise the installation Public Affairs Office of the
date public announcement of the contract action will be made.
Installations may proceed with award and local release of the
information no earlier than 4:00 P.M. ET of the date Code PM makes
public announcement. If earlier award is considered appropriate,
installations must request authorization from the Assistant
Administrator for Procurement (Code HS).

**1805.303-71 Administrator's notice of significant contract actions
(ANOSCAs).**

\(a\) In addition to the public announcement requirements described in
1805.303-70, contracting officers shall notify the Administrator of the
following significant actions at least five (5) workdays prior to
planned public announcement of the actions:

\(1\) Planned contract award for competitive acquisitions of \$25
million or more, including all priced options.

\(2\) Planned contract award of non-competitive awards and new work
modifications of \$100 million or more, including all priced options.

\(3\) Planned award of other actions, to include cooperative agreements
resulting from a Cooperative Agreement Notice (CAN), at any dollar value
thought to be of significant interest to Headquarters.

\(b\) To provide notification to the Administrator, the contracting
officer shall send the information listed in paragraphs (b)(1)-(10) of
this section to the Headquarters Office of Procurement (Code HS) via
facsimile transmission (202-358-4065). Immediately prior to
transmission, the contracting officer shall notify Code HS by telephone
of the impending transmission. In accordance with FAR 3.104-5(c), the
contracting officer shall mark all pages that include source selection
information with the legend \"SOURCE SELECTION INFORMATION - SEE FAR
3.104.\" The following information shall be sent:

\(1\) Title and a brief nontechnical description of the work, including
identification of the program or project;

\(2\) Identification of the contract action as either a new contract or
additional supplies or services under an existing contract;

\(3\) Contract type (including whether a cost contract is completion or
level-of-effort). For undefinitized contract actions, identify the
planned contract type of the definitized instrument;

\(4\) The total contract value for the instant action including all
priced options. Also include the Government\'s most probable cost. For
undefinitized contract actions, indicate the NTE or ceiling price
amount;

\(5\) The name, address, and business size status of the prime
contractor and each major (over \$1M) subcontractor;

\(6\) Small business and small disadvantaged business subcontracting
goals both in dollars and percentage of the value of the action
including all options;

\(7\) Principal work performance locations;

\(8\) Brief description of any unusual circumstances;

\(9\) The names and telephone numbers of the contracting officer and
project manager; and

\(10\) [For competitive selections only]{.underline}, provide on a
separate attachment the names and addresses of all unsuccessful offerors
and a brief explanation of the general basis for the selection.

\(c\) The field installation shall not proceed with any awards or
announcements until Code HS has advised that the Administrator has been
notified of the proposed action and the supporting information. Once
this advice is received from Code HS, the field installation shall
proceed with the public announcement procedures described in
1805.303-70.

# Subpart 1805.4\--Release of Information

4\.  The exclusion of this source will increase or maintain competition
and is likely to result in reduction of [    (2)    ]{.underline} in
overall costs for any anticipated acquisition of the supplies or
services being acquired. This estimate is based on
[    (3)   ]{.underline}.

(See Note 4 for the use of Alternates I and II below.)

**Alternate I:**  The exclusion of this source will serve the national
defense interest by having an alternative supplier available for
furnishing the supplies or services being acquired, in case of a
national emergency or industrial mobilization, because
[    (5)   ]{.underline}.

**Alternate II:**  The exclusion of this source will serve the national
defense interest by establishing or maintaining an essential
engineering, research, or development capability of an educational or
other nonprofit institution or a federally funded research and
development center, because [    (5)    ]{.underline} .

## Determination

The exclusion of the source identified above will increase or maintain
competition and is likely to result in reduced overall costs for any
anticipated acquisition of the supplies or services being acquired.

(See Note 4 for the use of Alternates I and II below.)

**Alternate I:** It is in the interest of the national defense to
exclude the source identified above in order to have an alternative
supplier available for furnishing the supplies or services being
acquired, in case of a national emergency or industrial mobilization.

**Alternate II:** It is in the interest of national defense to exclude
the source identified above in order to establish or maintain an
essential engineering, research, or development capability to be
provided by an educational or other nonprofit institution or a federally
funded research and development center.

Date\_\_\_\_\_\_\_\_\_\_\_

**NOTES:**

1\. Name of source to be excluded.

2\. Description of estimated reduction in overall costs.

3\. Description of how estimate was derived.

4\. In paragraph 4 and in the Determination, the basic wording is
appropriate when FAR 6.202(a)(1) applies; Alternate I is appropriate
when FAR 6.202(a)(2) applies; and Alternate II is appropriate when FAR
6.202(a)(3) applies.

5\. Description of circumstances necessitating the exclusion of the
identified source.

**Subpart 1806.3\--Other Than Full and Open Competition**

**1806.302 Circumstances permitting other than full and open
competition.**

**1806.302-4 International agreement.**

**1806.302-470 Documentation.**

Pursuant to 10 U.S.C. 2304(f)(2)(E), an individual justification for
other than full and open competition under the authority of FAR 6.302-4
is not required when the procurement officer signs a Memorandum for the
Record that:

\(a\) describes the specific terms of the international agreement or
treaty that limit acquisitions in support of, or as a result of, the
agreement or treaty to less than full and open competition; and

\(b\) is included in each official contract file in the place for filing
a Justification for Other than Full and Open Competition (see NASA Form
1098).

**1806.302-7 Public interest.**

(c)(2) The notice to Congress shall be made by NASA Headquarters, Office
of Legislative Affairs (Code L). Code HS shall request the notice to be
made immediately upon approval of a D&F and shall advise the contracting
activity of the date upon which the notification period ends.

\(3\) The contracting officer shall prepare the D&F required by FAR
6.302-7(c)(1) in any format that clearly documents the determination and
the supporting findings.

**1806.303  Justifications.**

**1806.303-1 Requirements.**

\(b\) Justifications for using less than full and open competition may
be prepared by the technical office initiating the contract action when
it is recommending the use of the justification authority, or by the
contracting officer if the technical office does not make such a
recommendation.

\(d\) The contracting officer shall send a copy of each approved
justification or D&F that cites the authority of FAR 6.302-3(a)(2)(i) or
FAR 6.302-7 to NASA Headquarters, Office of Procurement (Code HK),
unless one of the exceptions at FAR 25.401 applies to the acquisition.
The transmittal shall indicate that the justification is being furnished
under [FAR 6.303-1(d).]{.underline}

**1806.303-170 Sole-source purchases by contractors.**

The requirements of FAR Part 6 and NFS Part 1806 apply if NASA directs a
prime contractor (by specifications, drawings, parts lists, or
otherwise) to purchase items on a sole-source basis. Accordingly,
procurement officers shall take necessary actions to ensure that such
sole-source acquisitions are properly justified.

**1806.303-2 Content.**

**1806.303-270 Use of unusual and compelling urgency authority.**

If the authority at FAR 6.302-2 is used for extending the performance
period of an existing services contract, the justification shall contain
the information required by FAR 6.303-2 and;

\(a\) Documentation that the acquisition process for the successor
contract was started early enough to allow for adequately planning and
conducting a full and open competition, together with a description of
the circumstances that prevented award in a timely manner; and

\(b\) Documentation of the reasons why no other source could practicably
compete for the interim requirement.

1806.304-70 Approval of NASA justifications.

Concurrences and approvals for justifications of contract actions
conducted in accordance with FAR Subparts 6.2 and 6.3 shall be obtained
as follows:

\(a\) For proposed contracts over \$500,000 but not exceeding
\$10,000,000 -

\(1\) Concurring official: Procurement Officer

\(2\) Approving official: Center or Headquarters Competition Advocate.

\(b\) For proposed contracts over \$10,000,000 but not exceeding
\$50,000,000 -

\(1\) Concurring officials:

\(i\) Procurement Officer

\(ii\) Center or Headquarters Competition Advocate

\(2\) Approving official: Center Director or Director for Headquarters
Operations.

\(c\) For proposed contracts over \$50,000,000 -

\(1\) Concurring officials:

\(i\) Procurement Officer

\(ii\) Center or Headquarters Competition Advocate

\(iii\) Center Director or Director for Headquarters Operations

\(iv\) Agency Competition Advocate

\(2\) Approving Official: Assistant Administrator for Procurement

\(d\) The approval authority of FAR 6.304(a)(3) may not be delegated to
other than the installation\'s Deputy Director.

\(e\) For proposed contract actions requiring approval by the Assistant
Administrator for Procurement, the original justification shall be
forwarded to the Assistant Administrator for Procurement (Code HS).

\(f\) Regardless of dollar value, class justifications shall be approved
by the Assistant Administrator for Procurement.

## Subpart 1806.5\--Competition Advocates

**1806.501 Requirement.**

**(1)** The Deputy Assistant Administrator for Procurement is the agency
competition advocate, reporting to the Associate Deputy Administrator on
issues related to competition of NASA acquisitions.

**(2)** The Center Deputy Directors or Associate Directors are the
competition advocates for their contracting activities.

**(3)** The Headquarters Chief Financial Officer, Code CF, is the
competition advocate for the Headquarters contracting activity.

**1806.502 Duties and Responsibilities.**

(b)**(i)** Center competition advocates shall submit annual reports to
the agency competition advocate (Code HS) on or before November 30.

**(ii)** The agency competition advocate shall submit an annual agency
report on or before January 31.

charts, shall be included in the contract file to document completion of
the acquisition plan required by 1807.103.

\(b\) The ASM is not a requirements definition meeting. It is a meeting
to seek approval for the proposed acquisition approach for requirements
that were previously defined and agreed to by the cognizant offices.

\(c\) Headquarters ASMs will be chaired by the Assistant Administrator
for Procurement or designee. The Headquarters Office of Procurement
(Code HS) will prepare the minutes of Headquarters ASMs and distribute
them to all attendees for review prior to approval by the ASM
chairperson.

\(d\) For field installation ASMs, the minutes shall be approved in
accordance with installation procedures.

**Subpart 1807.2\--Planning for the Purchase of Supplies in Economic
Quantities**

**1807.204** **Responsibilities** **of** **contracting** **officers.**

\(a\) The contracting officer shall transmit in writing to the cognizant
inventory management/requirements office either the actual offeror
responses or a summary of their salient points. The transmittal should
be made within five working days after the closing date for receipt of
offers; however, if a response indicates the potential for a significant
savings, it should be transmitted immediately.

## Subpart 1807.3\--Contractor Versus Government Performance

**1807.307**  **Appeals.**

\(a\) Installations shall establish appeals procedures in accordance
with NMI 7410.3, Delegation of Authority for Acquisition of Commercial
Activities for NASA\'s Use.

**Subpart 1807.5\--Inherently Governmental Functions**

**1807.503 Policy.**

\(e\) The field installation requirements office shall provide the
contracting officer the written determination that none of the statement
of work tasks are inherently governmental. Disagreements regarding the
determination shall be resolved in accordance with installation
procedures.

**Subpart** **1807.70\--Consolidated Contracting**

**1807.7000 General.**

The Consolidated Contracting Initiative (CCI) is NASA's commitment to
the cooperative creation and utilization of contracts, whenever
practicable, to meet common Agency needs. CCI aims at improving
acquisition efficiency by identifying and logically combining similar
requirements. Complete information on the initiative, with its
implementation guidance, is available in the internet
(<http://prod.nais.nasa.gov/cgi-bin/cci/first.cgi>).

## Subpart 1807.71\--Master Buy Plan

**1807.7100 General.**

The Master Buy Plan provides information on planned acquisitions to
enable management to focus its attention on a representative selection
of high-dollar-value and otherwise sensitive acquisitions.

**1807.7101** **Applicability.**

\(a\) The Master Buy Plan applies to each negotiated acquisition,
including supplemental agreements, and acquisitions through or from
other Government agencies, where the dollar value, including the
aggregate amount of options, follow-on acquisitions, or later phases of
multi-phase acquisitions, is expected to equal or exceed \$50,000,000.

\(b\) For initial annual Master Buy Plan submission only, each
installation shall submit its three largest acquisitions regardless of
dollar value and all acquisitions over \$50,000,000.

\(c\) The procedure also applies to:

\(1\) Any supplemental agreement that contains either new work, a debit
change order, or a credit change order (or any combination/
consolidation thereof), if the absolute value of the actions equals or
exceeds \$50,000,000 (e.g., the absolute value of a supplemental
agreement adding \$30,000,000 of new work and deleting \$30,000,000 of
work is \$60,000,000, and is therefore subject to the Master Buy Plan).

\(2\) Any supplement agreement that contains one or more elements (new
work and/or individual change orders) of a sensitive nature that, in the
judgment of the installation or Headquarters, warrants Headquarters
consideration under the Master Buy Plan, even though the value does not
equal or exceed \$50,000,000.

\(3\) Any cooperative agreement notice where the total value (the
Government\'s contribution plus the contribution of the recipient) of
any resulting cooperative agreement is expected to equal or exceed
\$50,000,000.

\(4\) Any acquisition designated by NASA Headquarters regardless of its
value.

\(d\) The Master Buy Plan does not apply to incremental funding actions
or termination settlement agreements.

**1807.7102 Submission, selection, and** **notification procedures.**

**1807.7102-1 Submission of Master Buy** **Plan.**

\(a\) Prior to July 15th of every year, each installation shall submit
to the Headquarters Office of Procurement (Code HS) a Master Buy Plan
(electronically or original and eight copies) for the next fiscal year,
listing every known acquisition that (1) meets the criteria in
1807.7101, (2) is expected to be initiated in that fiscal year, and (3)
has not been included in a previous Master Buy Plan or amendment to a
Master Buy Plan.

\(b\) The fiscal year Master Buy Plan shall list all uncompleted
acquisitions selected for Headquarters review and approval from prior
Master Buy Plans and amendments to Master Buy Plans. These acquisitions
should be listed by the appropriate fiscal year Master Buy Plan and
individual item numbers, and should indicate the current status of the
individual acquisition documents previously selected for Headquarters
review and approval.

Propellant, Hydrogen, Liquid, Type II, Spec MIL-P-27201

Propellant, Hydrogen Peroxide, Spec MIL-P-16005

Propellant, Hydrogen Peroxide, Electrolytic Process, Spec MIL-P-16005

Propellant, Jet Fuel, Grade RJ-1, Spec MIL-F-25558

Propellant, JPX, 50 percent UDMH-50 percent JP-4, Spec MIL-P-26694

Propellant, JPX, 17 percent UDMH-83 percent JP-4, Spec MIL-P-26694

Propellant, Kerosene, Grade RP-1, Spec MIL-P-25576

Propellant, Monomethyl Hydrazine, Spec MIL-P-27404

Propellant, Neon, Liquid, AFPID 9135-16

Propellant, Nitric Acid, Type IIIB, Spec MIL-P-7254

Propellant, Nitric Acid, Type III LS, Spec MIL-P-7254

Propellant, Nitric Acid, Type IV (High Density Acid), Spec MIL-P-7254

Propellant, Nitrogen Tetroxide (NTO) (MON-1) (MON-3), Spec MIL-P-26539

Propellant, Nitrogen Tetroxide (NTO), MIL-P-26539

Propellant, Nitrogen Tetroxide (MON-1), Spec MIL-P-26539

Propellant, Nitrogen Tetroxide (MON-3), Spec MIL-P-26539

Propellant, Oxygen, Grade B, Spec MIL-P-25508

Propellant, Oxygen, Grade A, Spec MIL-P-25508

Propellant, Oxygen, Grade F, Spec MIL-P-25508

Propellant Pressurizing Agent, Helium, Spec MIL-P-27407, 99.995 pct min
assay

Propellant Pressurizing Agent, Nitrogen, Type II, Liquid Grade C, Spec
MIL-P-27401

Propellant Pressurizing Agent, Nitrogen, Type I, Gaseous Grade A, Spec
MIL-P-27401

Propellant Pressurizing Agent, Nitrogen, Type I, Grade B, Spec
MIL-P-27401

Propellant Pressurizing Agent, Nitrogen, Type II, Grade A, Spec
MIL-P-27401

Propellant Pressurizing Agent, Nitrogen, Type II, Grade B, Spec
MIL-P-27401

Propellant, Unsymmetrical Dimethyl-hydrazine, Spec MIL-P-25604

Propellant, Nitrogen Trifluoride Spec MIL-P-87896

Propellant Pressurizing Agent, Argon, Liquid, AFPID 9135-19

**1808.002-75** **Acquisition of mercury.**

\(a\) Requests for mercury by NASA installations for their use or for
use by their cost-reimbursement type contractors shall be made to the
Mercury Contract Specialist, Directorate of Stockpile Contracts, DLA,
Defense National Stockpile Center, 8725 John J. Kingman Rd., #3339, Ft.
Belvoir, VA 22060-6223. DLA will furnish the current fair market value
to NASA. The unit of issue is a 76-pound flask.

\(b\) Requests for clearance to purchase quantities of 76 pounds or more
from sources other than DLA shall be submitted to the office in
paragraph (a) of this section and must be accompanied by a statement of
reasons why the available excess mercury is unsuitable for use by the
requesting field installation.

**Subpart 1808.1\--Excess Personal Property**

**1808.103 Information** **on** **available** **excess** **personal**
**property.**

In addition to the sources identified in FAR 8.103, information on
availability of NASA excess property is maintained by the Installation
Property Disposal Officer and the NASA Equipment Management System
(NEMS) Coordinator.

**Subpart 1808.4\--**Federal Supply Schedules

**1808.404** **Using schedules.**

**1808.404-3** **Requests for waivers.**

\(a\) The head of the NASA office initiating the procurement request or
a designated representative shall furnish the NASA contracting office a
signed statement identifying the supplies or services to be purchased
and explaining why similar items listed in the applicable schedule will
not meet the requirement.

\(b\) If a waiver is not granted, the case shall be referred to the
Assistant Administrator for Procurement (Code HS) for a final decision
as to whether the non-schedule item will be purchased. The Assistant
Administrator for Procurement shall promptly notify the Commissioner,
Federal Supply Service, GSA, and the contracting office of the decision.

**Subpart 1808.6\--Acquisition from Federal Prison Industries, Inc.**

**1808.605** **Clearances.**

\(a\) NASA purchase orders or contracts written pursuant to a general or
blanket clearance need not be supported by a copy of the clearance, but
the clearance number must be cited on the purchase order or contract as
well as on the initial voucher. A copy of the clearance certificate must
be attached to the initial voucher.

\(c\) When disputes occur, the contracting officer shall refer the
matter to the Assistant Administrator for Procurement (Code HS) for
review and any further action. Such referrals shall include a complete
statement of the attempts made to resolve the matter.

**Subpart 1808.7\--Acquisition from Nonprofit Agencies Employing**

**People Who are Blind or Severely Disabled**

**1808.705** **Procedures.**

**1808.705-1 General.**

The Federal Standard Requisitioning and Issue Procedure (Federal
Property Management Regulation, Subpart 101-26.2) shall be used to
obtain nonprofit agency-produced supplies from GSA supply distribution
facilities.

**Subpart** **1808.8\--Acquisition of Printing and Related Supplies**

**1808.802 Policy.**

If the survey will be performed for NASA by a DOD agency, the SF 1403
request is to be sent to the appropriate office shown in the DOD
Directory of Contract Administration Services Components, DLAH 4105.4,
Attn: Preaward Survey Monitor. DOD normally allows seven working days in
which to conduct a full survey and submit the report to the requesting
agency.

**1809.106-70 Preaward surveys performed by NASA installations.**

In discussions with representatives of the company being surveyed, NASA
preaward survey team members shall not refer to or comment on the
possibility of award to the prospective contractor. This does not
preclude discussion with a prospective contractor of questionable areas
that require clarification. Information obtained during the survey will
be treated in strict confidence and divulged only to those Government
representatives having a need to know.

**Subpart 1809.2\--Qualifications Requirements**

**1809.200 Scope** **of** **subpart.**

This subpart prescribes policies and procedures to be followed in the
use of qualified products lists for acquisition of parts consistent with
the policies of NASA Policy Directive 8730.2, NASA Parts Policy.

**1809.202 Policy.**

\(a\) Authority regarding agency head actions under FAR 9.202(a) is
delegated to the cognizant technical activity, with approval by the
installation\'s competition advocate.

\(e\) The approval authority of FAR 9.202(e) is delegated to the
installation\'s competition advocate. Requests shall be prepared by the
cognizant requirements office and submitted via the procurement officer.

**1809.203 QPL\'s, QML\'s and QBL\'s.**

**1809.203-70 General.**

\(a\) The Deputy Associate Administrator for the Office of Safety and
Mission Assurance (Code Q), is responsible for justifying, determining,
and approving NASA\'s need for inclusion and continued use of
qualification requirements in specifications under the NASA EEE Parts
and Advanced Interconnect Program.

**1809.203-71 Waiver** **of** **qualification** **requirements.**

When acquiring a product under a specification that includes
qualification requirements either for the end item or for components of
the end item, the NASA installation conducting the acquisition can waive
the qualification requirements. Directing a waiver of the end item
qualification requirement constitutes adequate authorization for waiver
of product qualification requirements. When a waiver has been granted,
the solicitation shall specifically indicate that the qualification
requirement is inapplicable. Such information shall also be included in
any synopsis of the acquisition (see FAR Subpart 5.2).

**1809.206  Acquisitions subject to qualification requirements.**

**1809.206-1 General.**

(b)**(i)** The authority to determine that an emergency exists is
delegated to the installation\'s competition advocate. Requests for
determination shall be prepared by the cognizant requirements office and
submitted through the procurement officer.

**(ii)** Requests not to enforce a qualification requirement in a
nonemergency situation shall be prepared by the cognizant requirements
office and approved by the Headquarters Office of Safety and Mission
Assurance (Code Q).

\(c\) If an offeror seeks to demonstrate its capability, both the
product and the producer must meet the established standards.

**1809.206-70**  **Small** **businesses.**

If a small business otherwise eligible for award has been placed in a
special status on a Qualified Products List (Mil-Bul-103) or the
Qualified Manufacturers List (QML-38510) established as a part of the
NASA Microelectronics Reliability Program and the contracting officer
determines that the small business does not appear to have the capacity
to perform, the certificate of competency procedures in FAR Subpart 19.6
are applicable.

**1809.206-71 Contract** **clause.**

When qualified products (end items or components of end items) are being
procured, the contracting officer shall insert the clause at
1852.209-70, Product Removal from Qualified Products List, in the
solicitation and in the resulting contract.

**Subpart 1809.4\--Debarment, Suspension, and Ineligibility**

**1809.403 Definitions.**

For purposes of FAR Subpart 9.4 and this subpart, the Assistant
Administrator for Procurement is the \"debarring official,\" the
\"suspending official,\" and the agency head\'s \"designee.\"

**1809.404 List of Parties Excluded from Federal Procurement and
Nonprocurement Programs.**

\(c\) The Office of Procurement (Code HK) is responsible for taking the
actions listed in FAR 9.404(c).

(d)(1) Installation procurement offices shall notify Code HK of how many
copies of the List they want and provide a single mailing address at the
installation. Code HK will place the order for the copies which will be
mailed directly to the installation. Electronic access is also available
as described in the List.

**1809.405 Effect** **of** **listing.**

If it is believed that a new contract or subcontract must be awarded to
a firm on the List of Parties Excluded from Federal Procurement and
Nonprocurement Programs, the procurement officer shall prepare a request
for a determination with all necessary supporting information and
forward it to the Assistant Administrator for Procurement (Code HK) for
approval.

**1809.405-1** **Continuation** **of** **current** **contracts.**

\(c\) Approval of contract renewals or extensions shall be requested in
accordance with 1809.405.

**1809.405-2 Restrictions on subcontracting.**

\(a\) Approval of consent to subcontract shall be requested in
accordance with 1809.405.

**1809.406 Debarment.**

**1809.406-3 Procedures.**

\(a\) The report required by FAR 9.406-3(a) shall be prepared in
accordance with 1809.470.

**1809.407 Suspension.**

**1809.407-3**  **Procedures.**

\(a\) Reports shall be prepared in accordance with 1809.470.

**1809.408 Certification regarding debarment, suspension, proposed
debarment, and other responsibility matters.**

(a)(2)**(A)** If the offeror indicates that it has been indicted,
charged, convicted, or had a civil judgment rendered against it, the
contracting officer shall immediately notify the Assistant Administrator
for Procurement (Code HK), providing details as known, and shall await a
response before awarding the contract.

**(B)** If the offeror discloses information that indicates a need for a
debarment or suspension determination, the contracting officer shall
report the facts to the Assistant Administrator for Procurement (Code
HK) in accordance with 1809.470.

**1809.470 Reporting of suspected evasive** **actions and causes for
debarment or** **suspension.**

**1809.470-1 Situations requiring reports.**

A report incorporating the information required by 1809.470-2 of this
subpart shall be forwarded by the procurement officer to the Assistant
Administrator for Procurement (Code HK) when a contractor:

\(a\) Has committed, or is suspected of having committed, any of the
acts described in FAR 9.406-2 and 9.407-2; or

\(b\) Is suspected of attempting to evade the prohibitions of a
debarment or suspension imposed under the FAR by changes of address,
multiple addresses, formation of new companies, or other devices.

**1809.470-2 Contents** **of** **reports.**

Each report shall be coordinated with local counsel and shall include
substantially the following information, if available:

\(a\) Name and address of the contractor.

\(b\) Names of the principal officers, partners, owners, or managers.

\(c\) All known affiliates, subsidiaries, or parent firms, and the
nature of the affiliation.

\(d\) A description of the contract or contracts concerned, including
the contract number and office identifying numbers or symbols, the
amount of each contract, the amounts paid the contractor and still due,
and the percentage of work completed and to be completed.

\(e\) The status of vouchers.

\(f\) Whether the contract has been assigned pursuant to the Assignment
of Claims Act, and, if so, the name and address of the assignee and a
copy of the assignment.

\(g\) Whether any other contracts are outstanding with the contractor or
any affiliates, and, if so, their amount, whether they are assigned
pursuant to the Assignment of Claims Act, and the amounts paid or due on
them.

\(h\) A complete summary of all pertinent evidence. If a request for
debarment or suspension is based on an indictment or a conviction,
provide the evidence upon which the indictment or conviction is based.

\(i\) An estimate of any damages, sustained by the Government as a
result of the contractor\'s action, including an explanation of the
method used in making the estimate.

\(j\) Recommendation as to (1) whether the contractor should be
suspended or debarred, (2) whether any limitations should be applied to
such action, (3) whether current contracts should be terminated, and (4)
the period of any debarment.

\(k\) As an enclosure, a copy of the contract(s) or pertinent excerpts,
appropriate exhibits, testimony or statements of witnesses, copies of
assignments, and other relevant documentation.

**1809.470-3** **Addresses** **and** **copies** **of** **reports.**

Reports, including enclosures, shall be submitted to the Office of
Procurement (Code HK), with an additional copy to the Headquarters
Office of General Counsel (Code G).

**Subpart 1809.5\--Organizational and Consultant Conflicts of Interest**

**1809.500 Scope** **of** **subpart.**

The Assistant Administrator for Procurement has authorized the
procurement officer to take those actions reserved in FAR Subpart 9.5
for the head of the contracting activity. However, see 1809.503
regarding waivers.

**1809.503**  **Waiver.**

The Administrator has designated the Assistant Administrator for
Procurement as the approval authority for waivers under FAR 9.503. The
procurement officer shall forward requests for waivers under FAR 9.503
to the Assistant Administrator for Procurement (Code HS) for action.

**1809.506 Procedures.**

\(b\) The approving official is the procurement officer when the
installation has source selection authority and the Assistant
Administrator for Procurement (Code HS) when NASA Headquarters has that
authority.

**1809.507 Solicitation** **provisions** **and** **contract**
**clause.**

**1809.507-2 Contract** **clause.**

The contracting officer may insert a clause substantially the same as
the clause at 1852.209-71, Limitation of Future Contracting, in
solicitations and contracts.

**Subpart** **1809.6\--Contractor Team Arrangements**

**PART 1811**

# DESCRIBING AGENCY NEEDS

# TABLE OF CONTENTS

1811.002 Policy.

**SUBPART 1811.1 SELECTING AND DEVELOPING REQUIREMENTS**

#  DOCUMENTS

# 1811.101 Order of precedence for requirements documents. 

1811.107 Solicitation provisions.

**SUBPART 1811.4 DELIVERY OR PERFORMANCE SCHEDULES**

1811.403 Supplies or services.

1811.403-70 Packaging, handling, and transportation

1811.404 Contract clauses.

1811.404-70 NASA contract clauses

**SUBPART 1811.5 LIQUIDATED DAMAGES**

1811.501 Policy.

**SUBPART 1811.6 PRIORITIES AND ALLOCATIONS**

1811.602 General.

1811.603 Procedures.

**PART 1811**

DESCRIBING AGENCY NEEDS

**1811.002 Policy.**

\(b\) Implementation of the Metric Conversion Act of 1975, as amended,
must be in accordance with NPD 8010­.2B, Use of the Metric System of
Measurements in NASA Programs.

**Subpart 1811.1\--Selecting and Developing Requirements Documents**

**1811.101 Order of precedence for requirements documents.**

\(a\) Safeguards to ensure safety, security, and environmental
protection must be included, as applicable, in requirements documents.

(b)(2) Requirements for the use of environmentally preferable products
will be established in accordance with NPG 8830.1, "Affirmative
Procurement Plan for Environmentally Preferable Products." Requirements
for the use of energy and water efficient products and the use of
renewable energy technology will be established in accordance with NPG
8570.1, "Energy Conservation Technologies and Practices."

**1811.107 Solicitation provisions.**

\(b\) NASA uses the categorical method to report its use of voluntary
consensus standards. Therefore, use of the provisions at 52.211-7 is not
required. However, contracting officers must include in draft RFPs
(DRFPs) the information required by 1815.201(c)(6)(A).

**Subpart 1811.4\--Delivery or Performance Schedules**

**1811.403 Supplies or services.**

(a)(3) Contract delivery or perfor­mance schedules must not be express­ed
in terms of a notice of award. A notice of award as a specific docu­ment,
separate from the award docu­ment itself, is not a contractual document
and shall not be used as a reference point for contract perfor­mance. See
1814.­408 for additional information on notices of award.

**1811.403-70 Packaging, handling, and transportation.**

\(a\) NPG 600.1E, \"Requirements for Packaging, Handling, and
Transportation for Aeronautical and Space Systems, Equipment, and
Associated Components\" provides guidance for shipment of certain NASA
items.

\(b\) Contracting officers, with the advice of the requiring activity
and the Center Transportation Officer, must include a designation of
each deliverable item, or groupings of deliverable items, as Class I,
II, III, or IV for the purposes of contractor compliance with the NPG.

**1811.404 Contract clauses.**

(a)(2) FAR 52.211-8**,** Time of Deliv­ery, Alter­nates II and III, must
not be used in NASA contracts.

\(3\) FAR 52.211-9, Desired and Re­quired Time of Delivery, Alternates II
and III, must not be used in NASA contracts.

**1811.404-70 NASA contract clauses.**

The clause at 1852.211-70, Packaging, Handling, and Transportation, must
be included in solicitations for contracts for deliverable items,
including software, designated as Class I (mission essential), Class II
(delicate or sensitive), or Class III (requires special handling or
monitoring).

## Subpart 1811.5\--Liquidated Damages

**1811.501 Policy.**

\(d\) The procurement officer must forward recom­menda­tions concerning
remission of liquidated damages to the Headquarters Office of
Procure­ment (Code HS).

**Subpart 1811.6\--Priorities and Allocations**

**1811.602  General.**

\(c\) The Department of Defense is the \"Dele­gate Agency\" for NASA. The
Headquarters Office of Procurement (Code HK) must coordi­nate with DOD,
as necessary, to ensure that any DOD require­ments are met.

**1811.603 Procedures.**

(e)**(i)** Rated orders may be used by NASA only as provided in Section
700.17 of the DPAS (15 CFR 700.17) and subject to the limitations
provided in Section 700.18 of the DPAS (15 CFR 700.18). Priority ratings
are assigned on individual contracts and purchase orders by the
contracting officer.

**(ii)** NASA rated orders may only be assigned a DO rating, unless NASA
has obtained a DX rating from the Department of Defense.

**(iii)** The following program identification symbols may be used on
NASA rated con­tracts and purchase orders for equipment and services that
support authorized programs (see Schedule I of the DPAS):

A1 - Aircraft

A2 - Missiles

A3 - Ships

A5 - Weapons

A6 - Ammunition

A7 - Electronic and Communi­cations Equipment

B1 - Military Building Sup­plies

B8 - Production Equipment (For Contractor\'s Account)

B9 - Production Equipment (Government-Owned)

C2 - Construction

C3 - Maintenance, Repair, and Operating Supplies for Facili­ties

C9 - Miscellaneous/Other

\(g\) Installation requests for as­sistance shall be directed to the
Headquarters Office of Procure­ment (Code HK).

PART 1812

## ACQUISITION OF COMMERCIAL ITEMS

# TABLE OF CONTENTS

**SUBPART 1812.1 ACQUISITION OF COMMERCIAL ITEMS\--GENERAL**

1812.102 Applicability.

**SUBPART 1812.3 SOLICITATION PROVISIONS AND CONTRACT CLAUSES**

#  FOR THE ACQUISITION OF COMMERCIAL ITEMS 

1812.301 Solicitation provisions and contract clauses for the
acquisition of commercial items.

1812.302 Tailoring of provisions and clauses for the acquisition of
commercial items.

**SUBPART 1812.4 UNIQUE REQUIREMENTS REGARDING TERMS AND CONDITIONS FOR
COMMERCIAL ITEMS**

1812.404 Warranties.

**SUBPART 1812.70 COMMERCIAL SPACE HARDWARE OR SERVICES**

1812.7000 Prohibition on guaranteed customer bases for new commercial
space hardware or services.

**PART 1812**

## ACQUISITION OF COMMERCIAL ITEMS

## Subpart 1812.1\--Acquisition of Commercial Items\--General

**1812.102 Applicability.**

\(c\) For the acquisition of commercial items of any value, the MidRange
procedures described in NFS Part 1871 may be used to the extent they are
consistent and compliant with FAR Part 12 and NFS Part 1812. Unless
specifically stated, in any conflict between these parts the descending
order of precedence is FAR Part 12, Part 1812, and Part 1871.

**Subpart 1812.3\--Solicitation Provisions and Contract Clauses**

**for the Acquisition of Commercial Items**

**1812.301 Solicitation provisions and contract clauses for the
acquisition of commercial items.**

(f)**(i)** The following clauses are authorized for use in acquisitions
of commercial items when required by the clause prescription:

**(A)** 1852.204-74, Central Contractor Registration.

**(B)** 1852.214-71, Grouping for Aggregate Award.

**(C)** 1852.214-72, Full Quantities.

**(D)** 1852.215-84, Ombudsman.

**(E)** 1852.219-75, Small Business Subcontracting Reporting.

**(F)** 1852.219-76, NASA 8 Percent Goal.

**(G)** 1852.223-70, Safety and Health.

**(H)** 1852.223-71, Frequency Authorization.

**(I)** 1852.223-72, Safety and Health (Short Form).

> **(J)** 1852.223-73, Safety and Health Plan.
>
> **(K)** 1852.223-75, Major Breach of Safety and Security.
>
> **(L)** 1852.228-72, Cross-Waiver of Liability for Space Shuttle
> Services.
>
> **(M)** 1852.228-76, Cross-Waiver of Liability for Space Station
> Activities.
>
> **(N)** 1852.228-78, Cross-Waiver of Liability for NASA Expendable
> Launch Vehicles.
>
> **(O)** 1852.246-72, Material Inspection and Receiving Report.

**(ii)** No other provisions and clauses prescribed in the NFS or center
documents shall be used in acquisitions of commercial items, except as
permitted by FAR 12.302.

**1812.302 Tailoring of provisions and clauses for the acquisition of
commercial items.**

\(c\) The Assistant Administrator for Procurement (Code HS) is the
approval authority for waivers. Requests shall be prepared and submitted
in accordance with 1801.471.

**Subpart 1812.4\--Unique Requirements Regarding Terms and**

**Conditions for Commercial Items**

**1812.404 Warranties.**

\(b\) In acquisitions under the Simplified Acquisition Threshold
specified in FAR Part 13, no express warranty should be required other
than the offeror\'s commercial warranty.

**Subpart 1812.70\--Commercial Space Hardware or Services**

**1812.7000 Prohibition on guaranteed customer bases for new commercial
space**

**hardware or services.**

Public Law 102-139, title III, Section 2459d, prohibits NASA from
awarding a contract with an expected duration of more than one year if
the primary effect of the contract is to provide a guaranteed customer
base for, or establish an anchor tenancy in, new commercial space
hardware or services. Exception to this prohibition may be authorized
only by an appropriations Act specifically providing otherwise.

**CONTRACTING BY NEGOTIATION**

**Subpart 1815. 2\--Solicitation and Receipt of Proposals and
Information**

**1815.201 Exchanges with industry before receipt of proposals.**

\(c\) (6) **(A)** Except for acquisitions described in 1815.300-70(b)
contracting officers shall issue draft requests for proposals (DRFPs)
for all competitive negotiated acquisitions expected to exceed
\$1,000,000 (including all options or later phases of the same project).
DRFPs shall invite comments from potential offerors on all aspects of
the draft solicitation, including the requirements, schedules, proposal
instructions, and evaluation approaches. Potential offerors should be
specifically requested to identify unnecessary or inefficient
requirements. If the DRFP contains Government-unique standards,
potential offerors should be invited to identify voluntary consensus
standards that meet the Government\'s requirements as alternatives to
Government-unique standards cited as requirements, in accordance with
FAR 11.101 and OMB Circular A-119. Comments should also be requested on
any perceived safety, occupational health, security (including
information technology security), environmental, export control, and/or
other programmatic risk issues associated with performance of the work.
When considered appropriate, the statement of work or the specifications
may be issued in advance of other solicitation sections.

**(B)** Contracting officers shall plan the acquisition schedule to
include adequate time for issuance of the DRFP, potential offeror review
and comment, and NASA evaluation and disposition of the comments.

**(C)** When issuing DRFPs, potential offerors should be advised that
the DRFP is not a solicitation and NASA is not requesting proposals.

**(D)** Whenever feasible, contracting officers should include a summary
of the disposition of significant DRFP comments with the final RFP.

**(E)** If performance-based payments are planned to be used in a
competitive negotiated acquisition, the DRFP shall request potential
offerors to suggest terms, including performance events or payment
criteria. Contracting officers shall use that information to establish a
common set of performance-based payments parameters in the formal RFP
when practicable.

**(F)** The procurement officer may waive the requirement for a DRFP
upon written determination that the expected benefits will not be
realized given the nature of the supply or service being acquired. The
DRFP shall not be waived because of poor or inadequate planning.

(f)**(i)** Upon release of the formal RFP, the contracting officer shall
direct all personnel associated with the acquisition to refrain from
communicating with prospective offerors and to refer all inquiries to
the contracting officer or other authorized representative. This
procedure is commonly known as a \"blackout notice\" and shall not be
imposed before release of the RFP. The notice may be issued in any
format (e.g., letter or electronic) appropriate to the complexity of the
acquisition.

**(ii)** Blackout notices are not intended to terminate all
communication with offerors. Contracting officers should continue to
provide information as long as it does not create an unfair competitive
advantage or reveal proprietary data.

**1815.203 Requests for proposals.**

**1815.203-70 Installation reviews.**

\(a\) Installations shall establish procedures to review all RFPs before
release. When appropriate given the complexity of the acquisition or the
number of offices involved in solicitation review, centers should
consider use of a single review meeting called a Solicitation Review
Board (SRB) as a streamlined alternative to the serial or sequential
coordination of the solicitation with reviewing offices. The SRB is a
meeting in which all offices having review and approval responsibilities
discuss the solicitation and their concerns. Actions assigned and
changes required by the SRB shall be documented.

\(b\) When source evaluation board (SEB) procedures are used in
accordance with 1815.370, the SEB shall review and approve the RFP prior
to issuance.

**1815.203-71 Headquarters reviews.**

For RFPs requiring Headquarters review and approval, the procurement
officer shall submit ten copies of the RFP to the Assistant
Administrator for Procurement (Code HS). Any significant information
relating to the RFP or the planned evaluation methodology omitted from
the RFP itself should also be provided.

**1815.203-72 Risk management.**

In all RFPs and RFOs for supplies or services for which a technical
proposal is required, proposal instructions shall require offerors to
identify and discuss risk factors and issues throughout the proposal
where they are relevant, and describe their approach to managing these
risks.

**1815.204 Contract format.**

**1815.204-2 Part I - The Schedule.**

\(c\) To the maximum extent practicable, requirements should be defined
as performance based specifications/statements of work that focus on
required outcomes or results, not methods of performance or processes.

**1815.204-5 Part IV - Representations and instructions.**

\(b\) The information required in proposals should be kept to the
minimum necessary for the source selection decision.

**1815.204-70 Page limitations.**

\(a\) Technical and contracting personnel will agree on page limitations
for their respective portions of an RFP. Unless approved in writing by
the procurement officer, the page limitation for the contracting portion
of an RFP (all sections except Section C, Description/
specifications/work statement) shall not exceed 150 pages, and the page
limitation for the technical portion (Section C) shall not exceed 200
pages. Attachments to the RFP count as part of the section to which they
relate. In determining page counts, a page is defined as one side of a
sheet, 8 1/2\" x 11\", with at least one inch margins on all sides,
using not smaller than 12-point type. Foldouts count as an equivalent
number of 8 1/2\" x 11\" pages. The metric standard format most closely
approximating the described standard 8 1/2\" x 11\" size may also be
used.

\(b\) Page limitations shall also be established for proposals submitted
in competitive acquisitions. Accordingly, technical and contracting
personnel will agree on page limitations for

***(b)*** Use a graduated scale that proportionally adjusts a
proposal\'s Mission Suitability score for its assessed cost realism;

***(c)*** Affect a significant number of points to induce realistic
pricing.

**(*d) ***Calculate a Mission Suitability point adjustment based on the
percentage difference between proposed and probable cost as follows:

+------------------------+-------------------------+-------------------+
| # Services             | **Hardware              | #                 |
|                        | Development**           |  Point Adjustment |
+------------------------+-------------------------+-------------------+
| +/- 5 percent          | +/- 30 percent          | 0                 |
+------------------------+-------------------------+-------------------+
| +/- 6 to 10 percent    | +/- 31 to 40 percent    | -50               |
+------------------------+-------------------------+-------------------+
| +/- 11 to 15 percent   | +/- 41 to 50 percent    | -100              |
+------------------------+-------------------------+-------------------+
| +/- 16 to 20 percent   | +/- 51 to 60 percent    | -150              |
+------------------------+-------------------------+-------------------+
| +/- 21 to 30 percent   | +/- 61 to 70 percent    | -200              |
+------------------------+-------------------------+-------------------+
| +/- more than 30       | +/- more than 70        | -300              |
| percent                | percent                 |                   |
+------------------------+-------------------------+-------------------+

(a)(4) The cost or price evaluation, specifically the cost realism
analysis, often requires a technical evaluation of proposed costs.
Contracting officers may provide technical evaluators a copy of the cost
volume or relevant information from it to use in the analysis.

\(b\) The contracting officer is authorized to make the determination to
reject all proposals received in response to a solicitation.

**1815.305-70 Identification of unacceptable proposals.**

\(a\) The contracting officer shall not complete the initial evaluation
of any proposal when it is determined that the proposal is unacceptable
because:

\(1\) It does not represent a reasonable initial effort to address the
essential requirements of the RFP or clearly demonstrates that the
offeror does not understand the requirements;

\(2\) In research and development acquisitions, a substantial design
drawback is evident in the proposal, and sufficient correction or
improvement to consider the proposal acceptable would require virtually
an entirely new technical proposal; or

\(3\) It contains major deficiencies or omissions or out-of-line costs
which discussions with the offeror could not reasonably be expected to
cure.

\(b\) The contracting officer shall document the rationale for
discontinuing the initial evaluation of a proposal in accordance with
this section.

**1815.305-71 Evaluation of a single proposal.**

\(a\) If only one proposal is received in response to the solicitation,
the contracting officer shall determine if the solicitation was flawed
or unduly restrictive and determine if the single proposal is an
acceptable proposal. Based on these findings, the SSA shall direct the
contracting officer to:

\(1\) Award without discussions provided the contracting officer
determines that adequate price competition exists (see FAR
15.403-1(c)(1)(ii));

\(2\) Award after negotiating an acceptable contract. (The requirement
for submission of cost or pricing data shall be determined in accordance
with FAR 15.403-1); or

\(3\) Reject the proposal and cancel the solicitation.

\(b\) The procedure in 1815.305-71(a) also applies when the number of
proposals equals the number of awards contemplated or when only one
acceptable proposal is received.

**1815.306 Exchanges with offerors after receipt of proposals.**

(c)(2) A total of no more than three proposals shall be a working goal
in establishing the competitive range. Field installations may establish
procedures for approval of competitive range determinations commensurate
with the complexity or dollar value of an acquisition.

(d)(3)**(A)** The contracting officer shall identify any cost/price
elements that do not appear to be justified and encourage offerors to
submit their most favorable and realistic cost/price proposals, but
shall not discuss, disclose, or compare cost/price elements of any other
offeror. The contracting officer should question inadequate,
conflicting, unrealistic, or unsupported cost information; differences
between the offeror\'s proposal and most probable cost assessments; cost
realism concerns; differences between audit findings and proposed costs;
proposed rates that are too high/low; and labor mixes that do not appear
responsive to the requirements. No agreement on cost/price elements or a
\"bottom line \" is necessary.

**(B)** The contracting officer shall discuss contract terms and
conditions so that a \"model\" contract can be sent to each offeror with
the request for final proposal revisions. If the solicitation allows,
any proposed technical performance capabilities above those specified in
the RFP that have value to the Government and are considered proposal
strengths should be discussed with the offeror and proposed for
inclusion in that offeror's \"model\" contract. If the offeror declines
to include these strengths in its \"model\" contract, the Government
evaluators should reconsider their characterization as strengths.

(e)(1) In no case shall the contracting officer relax or amend RFP
requirements for any offeror without amending the RFP and permitting the
other offerors an opportunity to propose against the relaxed
requirements.

**1815.307 Proposal revisions.**

(b)**(i)** The request for final proposal revisions (FPRs) shall also:

**(A)** Instruct offerors to incorporate all changes to their offers
resulting from discussions, and require clear traceability from initial
proposals;

**(B)** Require offerors to complete and execute the \"model\" contract,
which includes any special provisions or performance capabilities the
offeror proposed above those specified in the RFP;

**(C)** Caution offerors against unsubstantiated changes to their
proposals; and

**(D)** Establish a page limit for FPRs.

**(ii)** Approval of the Assistant Administrator for Procurement (Code
HS) is required to reopen discussions for acquisitions of \$50 million
or more. Approval of the procurement officer is required for all other
acquisitions.

**(iii)** Proposals are rescored based on FPR evaluations. Scoring
changes between initial and FPRs shall be clearly traceable.

**1815.308 Source selection decision.**

**(1)** All significant evaluation findings shall be fully documented
and considered in the source selection decision. A clear and logical
audit trail shall be maintained for the rationale for ratings

**1815.504 Award to successful offeror.**

The reference to notice of award in FAR 15.504 on negotiated
acquisitions is a generic one. It relates only to the formal
establishment of a contractual document obligating both the Government
and the offeror. The notice is effected by the transmittal of a fully
approved and executed definitive contract document, such as the award
portion of SF 33, SF 26, SF 1449, or SF 1447, or a letter contract when
a definitized contract instrument is not available but the urgency of
the requirement necessitates immediate performance. In this latter
instance, the procedures in 1816.603 for approval and issuance of letter
contracts shall be followed.

**1815.506 Postaward debriefing of offerors.**

**1815.506-70 Debriefing of offerors - Major System acquisitions.**

\(a\) When an acquisition is conducted in accordance with the Major
System acquisition procedures in Part 1834 and multiple offerors are
selected, the debriefing will be limited in such a manner that it does
not prematurely disclose innovative concepts, designs, and approaches of
the successful offerors that would result in a transfusion of ideas.

\(b\) When Phase B awards are made for alternative system design
concepts, the source selection statements shall not be released to
competing offerors or the general public until the release of the source
selection statement for Phase C/D without the approval of the Assistant
Administrator for Procurement (Code HS).

**Subpart 1815.6\--Unsolicited Proposals**

**1815.602 Policy.**

**(1)** An unsolicited proposal may result in the award of a contract,
grant, cooperative agreement, or other agreement. If a grant or
cooperative agreement is used, the NASA Grant and Cooperative Agreement
Handbook (NPG 5800.1) applies.

**(2)** Renewal proposals, (i.e., those for the extension or
augmentation of current contracts) are subject to the same FAR and NFS
regulations, including the requirements of the Competition in
Contracting Act, as are proposals for new contracts.

**1815.604 Agency points of contact.**

\(a\) Information titled \"Guidance for the Preparation and Submission
of Unsolicited Proposals\" is available on the Internet at
http://ec.msfc.nasa.gov/hq/library/unSol-Prop.html. A deviation is
required for use of any modified or summarized version of the Internet
information or for alternate means of general dissemination of
unsolicited proposal information.

**1815.606 Agency procedures.**

\(a\) NASA will not accept for formal evaluation unsolicited proposals
initially submitted to another agency or to the Jet Propulsion
Laboratory (JPL) without the offeror\'s express consent.

(b)**(i)** NASA Headquarters and each NASA field installation shall
designate a point of contact for receiving and coordinating the handling
and evaluation of unsolicited proposals.

**(ii)** Each installation shall establish procedures for handling
proposals initially received by other offices within the installation.
Misdirected proposals shall be forwarded by the point of contact to the
proper installation. Points of contact are also responsible for
providing guidance to potential offerors regarding the appropriate NASA
officials to contact for general mission-related inquiries or other
preproposal discussions.

**(iii)** Points of contact shall keep records of unsolicited proposals
received and shall provide prompt status information to requesters.
These records shall include, at a minimum, the number of unsolicited
proposals received, funded, and rejected during the fiscal year; the
identity of the offerors; and the office to which each was referred. The
numbers shall be broken out by source (large business, small business,
university, or nonprofit institution).

**1815.606-70 Relationship of unsolicited proposals to NRAs.**

An unsolicited proposal for a new effort or a renewal, identified by an
evaluating office as being within the scope of an open NRA, shall be
evaluated as a response to that NRA (see 1835.016-71), provided that the
evaluating office can either:

\(a\) State that the proposal is not at a competitive disadvantage, or

\(b\) Give the offeror an opportunity to amend the unsolicited proposal
to ensure compliance with the applicable NRA proposal preparation
instructions. If these conditions cannot be met, the proposal must be
evaluated separately.

**1815.609 Limited use of data.**

**1815.609-70 Limited use of proposals.**

Unsolicited proposals shall be evaluated outside the Government only to
the extent authorized by, and in accordance with, the procedures
prescribed in, 1815.207-70.

**1815.670 Foreign proposals.**

Unsolicited proposals from foreign sources are subject to NPD 1360.2,
Initiation and Development of International Cooperation in Space and
Aeronautics Programs.

**Subpart 1815.70\--Ombudsman**

**1815.7001 NASA Ombudsman Program.**

NASA\'s implementation of an ombudsman program is in NPG 5101.33,
Procurement Advocacy Programs.

**1815.7002 Synopses of solicitations and contracts.**

In all synopses announcing competitive acquisitions, the contracting
officer shall indicate that the clause at 1852.215-84, Ombudsman, is
applicable. This may be accomplished by referencing the clause number
and identifying the installation Ombudsman.

**1815.7003 Contract clause.**

The contracting officer shall insert a clause substantially the same as
the one at 1852.215-84, Ombudsman, in all solicitations (including draft
solicitations) and contracts. Use the clause with its Alternate I when a
task or delivery order contract is contemplated.

PART 1816

**TYPES OF CONTRACTS**

**TABLE OF CONTENTS**

**SUBPART 1816.1 SELECTING CONTRACT TYPES**

1816.104 Factors in selecting contract types.

1816.104-70 Contract type of performance-based contracting (PBC).

**SUBPART 1816.2 FIXED-PRICE CONTRACTS**

1816.202 Firm-fixed-price contracts.

1816.202-70 NASA contract clause.

1816.203 Fixed-price contracts with economic price adjustment.

1816.203-4 Contract clauses.

**SUBPART 1816.3 COST-REIMBURSEMENT CONTRACTS**

1816.303-70 Cost-sharing contracts.

1816.306 Cost-plus-fixed-fee contracts.

1816.307 Contract clauses.

1816.307-70 NASA contract clauses.

**SUBPART 1816.4 INCENTIVE CONTRACTS**

1816.402 Application of pre-determined, formula-type incentives.

1816.402-2 Performance incentives.

1816.402-270 NASA technical performance incentives.

1816.404 Fixed-price contracts with award fees.

1816.405 Cost-reimbursement incentive contracts.

1816.405-2 Cost-plus-award-fee (CPAF) contracts.

1816.405-270 CPAF contracts.

1816.405-271 Base fee.

1816.405-272 Award fee evaluation periods.

1816.405-273 Award fee evaluations.

1816.405-274 Award fee evaluation factors.

1816.405-275 Award fee evaluation scoring.

1816.405-276 Award fee payments and limitations.

1816.406 Contract clauses.

1816.406-70 NASA contract clauses.

**SUBPART 1816.5 INDEFINITE-DELIVERY CONTRACTS**

1816.504 Indefinite quantity contracts.

1816.505 Ordering.

1816.505-70 Task Ordering.

1816.506-70 NASA contract clause.

**SUBPART 1816.6 TIME-AND-MATERIALS,** **LABOR-HOUR, AND LETTER
CONTRACTS**

1816.603 Letter contracts.

1816.603-2 Application.

1816.603-370 Approvals.

**PART 1816**

## TYPES OF CONTRACTS

**Subpart 1816.1\--Selecting Contract Types**

**1816.104 Factors in selecting contract types.**

**1816.104-70 Contract type for performance-based contracting (PBC).**

\(a\) PBC is defined in FAR 2.101 and discussed in FAR 37.6. Although
FAR Part 37 primarily addresses services contracts, PBC is not limited
to these contracts. PBC is the preferred way of contracting for all
supplies and services at NASA. Generally, when contract performance risk
under a PBC specification can be fairly shifted to the contractor to
allow for the operation of objective incentives, a contract type with
objectively measurable incentives (e.g., FFP, FPIF, or CPIF) is
appropriate. However, when contractor performance (e.g., cost control,
schedule, or quality/technical) is best evaluated subjectively using
quantitative measures, a CPAF contract may be used.

\(b\) A PBC is a completion form of contract (something is
accomplished). Term/level-of-effort, time-and-materials and labor hour
contracts are not PBC.

**Subpart 1816.2\--Fixed-Price Contracts**

**1816.202 Firm-fixed-price contracts.**

**1816.202-70 NASA contract clause.**

The contracting officer shall insert the clause at 1852.216-78,
Firm-Fixed-Price, in firm-fixed-price solicitations and contracts.
Insert the appropriate amount in the resulting contract.

**1816.203 Fixed-price contracts with** **economic price adjustment.**

**1816.203-4 Contract clauses.**

\(a\) In addition to the approval requirements in the prescriptions at
FAR 52.216-2 through 52.216-4, the contracting officer shall coordinate
with the installation\'s Deputy Chief Financial Officer (Finance) before
exceeding the ten-percent limit in paragraph (c)(1) of the clauses at
FAR 52.216-2 and 52.216-3 and paragraph (c)(4) of the clause at
52.216-4.

(d)(2) Contracting officers shall contact the Office of Procurement,
Code HK, for specific guidance on preparing clauses using cost indexes.
Such clauses require advance approval by the Assistant Administrator for
Procurement. Requests for approval shall be submitted to the
Headquarters Office of Procurement (Code HS).

**Subpart 1816.3\--Cost-Reimbursement Contracts**

provisionally paid is the lesser of a percentage stipulated in the
contract (but not exceeding 80 percent) or the prior period\'s
evaluation score. For an end item contract, the total amount of
provisional payments in a period is limited to a percentage not to
exceed 80 percent of the prior interim period's evaluation score.

\(c\) *Fee Payment*. The Fee Determination Official\'s rating for both
interim and final evaluations will be provided to the contractor within
45 calendar days of the end of the period being evaluated. Any fee,
interim or final, due the contractor will be paid no later than 60
calendar days after the end of the period being evaluated.

**1816.406 Contract clauses.**

**1816.406-70 NASA contract clauses.**

\(a\) As authorized by FAR 16.406(e), the contracting officer shall
insert the clause at 1852.216-76, Award Fee for Service Contracts, in
solicitations and contracts when an award-fee contract is contemplated
and the contract deliverable is the performance of a service.

\(b\) As authorized by FAR 16.406(e), the contracting officer shall
insert the clause at 1852.216-77, Award Fee for End Item Contracts, in
solicitations and contracts when an award fee contract is contemplated
and the contract deliverables are hardware or other end items for which
total contractor performance cannot be measured until the end of the
contract. When the clause is used in a fixed-price award-fee contract,
it shall be modified by deleting references to base fee in paragraphs
(a), and by deleting paragraph (c)(1), the last sentence of (c)(4), and
the first sentence of (c)(5).

\(c\) The contracting officer may insert a clause substantially as
stated at 1852.216-83, Fixed Price Incentive, in fixed-price-incentive
solicitations and contracts utilizing firm or successive targets. For
items subject to incentive price revision, identify the target cost,
target profit, target price, and ceiling price for each item.

\(d\) The contracting officer shall insert the clause at 1852.216-84,
Estimated Cost and Incentive Fee, in cost-plus-incentive-fee
solicitations and contracts.

\(e\) The contracting officer may insert the clause at 1852.216-85,
Estimated Cost and Award Fee, in award-fee solicitations and contracts.
When the contract includes performance incentives, use Alternate I. When
the clause is used in a fixed-price award fee contract, it shall be
modified to delete references to base fee and to reflect the contract
type.

\(f\) As provided at 1816.402-270, the contracting officer shall insert
a clause substantially as stated at 1852.216-88, Performance Incentive,
when the primary deliverable(s) is (are) hardware and total estimated
cost and fee is greater than \$25 million. A clause substantially as
stated at 1852.216-88 may be included in lower dollar value hardware
contracts with the approval of the procurement officer.

**Subpart 1816.5\--Indefinite-Delivery Contracts**

**1816.504 Indefinite quantity contracts.**

(a)(4)(ii) ID/IQ service contract values and task order values shall be
expressed only in dollars.

(a)(4)(v) See 1815.7003.

**1816.505 Ordering.**

(a)(2) Task and delivery orders shall be issued by the contracting
officer.

(b)(5) The Agency and installation ombudsmen designated in accordance
with 1815.7001 shall review complaints from contractors on task order
contracts and delivery order contracts.

**1816.505-70 Task ordering.**

\(a\) The contracting officer shall, to the maximum extent possible,
state task order requirements in terms of functions and the related
performance and quality standards such that the standards may be
objectively measured.

\(b\) To the maximum extent possible, contracting officers shall solicit
contractor task plans to use as the basis for finalizing task order
requirements and enable evaluation and pricing of the contractor\'s
proposed work on a performance based approach as described in
1816.104-70(a).

\(c\) Task order contract type shall be individually determined, based
on the nature of each task order\'s requirements.

\(1\) Task orders may be grouped by contract type for administrative
convenience (e.g., all CPIF orders, all FFP orders, etc.) for contractor
progress and cost reporting.

\(2\) Under multiple awards, solicitations for individual task plans
shall request the same pricing structure from all offerors.

\(d\) Any undefinitized task order issued under paragraph (f) of the
clause at 1852.216-80, Task Ordering Procedure, shall be treated and
reported as an undefinitized contract action in accordance with 1843.70.

**1816.506-70 NASA contract clause.**

Insert the clause at 1852.216-80, Task Ordering Procedure, in
solicitations and contracts when an indefinite-delivery, task order
contract is contemplated. The clause is applicable to both fixed-price
and cost-reimbursement type contracts. If the contract does not require
533M reporting (see NPG 9501.2, NASA Contractor Financial Management
Reporting System), use the clause with its Alternate I.

**Subpart 1816.6\--Time-and-Materials, Labor-Hour, and Letter
Contracts**

**1816.603 Letter contracts.**

**1816.603-2 Application.**

\(a\) Centers must ensure that NASA liabilities and commitments are
minimized under letter contracts. When a letter contract is justified
and program requirements can be severed into smaller, discreet efforts,
the work authorized by the letter contract must be limited to the
minimum severable effort required to satisfy the urgent program
requirements. The remaining requirements may not be initially included
in the letter contract and must be acquired through a separate fully
priced and definitized contract action.

**1816.603-370 Approvals.**

(a)(1) The approval authority to issue a letter contract is \--

\(i\) The Assistant Administrator for Procurement when the estimated
value of the definitized contract is equal to or greater than the Master
Buy Plan (MBP) submission threshold of 1807.7101;

\(ii\) The procurement officer when the estimated value of the
definitized contract is below the MBP submission threshold; and

\(iii\) The Assistant Administrator for Procurement for any modification
of an undefinitized letter contract approved by the procurement officer
that increases the estimated value of the definitized contract to an
amount equal to or above the MBP submission threshold. This approval
must be obtained prior to issuing the modification.

\(2\) The procurement officer must sign all requests for approval by the
Assistant Administrator for Procurement and submit them to Code HS.

\(b\) All requests for authority to issue a letter contract must include
the following:

\(1\) Contractor name and address.

\(2\) Place of performance.

\(3\) Contract number, including modification number, if applicable.

\(4\) Brief description of the work or services to be performed.

\(5\) Performance period or delivery schedule for both the letter
contract and definitized contract.

\(6\) Estimated value of the work authorized by the letter contract.

\(7\) Estimated value of the definitized contract.

\(8\) Contract type of the definitized contract.

\(9\) A statement that the definitized contract will contain all
required clauses or identification of approved specific clause
deviations.

\(10\) Complete justification of the necessity for the letter contract,
including the advantages to the Government and a description of the
efforts to avoid its issuance or to minimize its scope.

\(11\) The definitization schedule described in FAR 16.603-2(c) expected
to be negotiated with the contractor.

**PART** **1817**

# SPECIAL CONTRACTING METHODS

**TABLE OF CONTENTS**

**SUBPART 1817.1 MULTIYEAR CONTRACTING**

1817.105 Policy.

1817.105-1 Uses.

**SUBPART 1817.2 OPTIONS**

1817.200 Scope of subpart.

1817.203 Solicitations.

1817.204 Contracts.

1817.206 Evaluation.

1817.207 Exercise of options.

1817.208 Solicitation provisions and contract clauses.

**SUBPART 1817.4 LEADER COMPANY** **CONTRACTING**

1817.401 General.

**SUBPART 1817.5 INTERAGENCY ACQUISITIONS** **UNDER THE ECONOMY ACT**

1817.503 Determinations and findings requirements.

1817.504 Ordering procedures.

**SUBPART 1817.70 ACQUISITIONS WITH** **MILITARY DEPARTMENTS**

1817.7000 Scope of subpart.

1817.7001 Authorization and policy.

1817.7002 NASA-Defense Purchase Request and acceptance.

1817.7002-1 Acceptance by Military Department.

1817.7002-2 Changes in estimated total prices.

1817.7002-3 Payments.

1817.7002-4 Contract clause.

**SUBPART 1817.71 EXCHANGE OR SALE OF** **PERSONAL PROPERTY**

1817.7101 Policy.

# SUBPART 1817.72 INTERAGENCY TRANSACTIONS

1817.7201 Policy.

**SUBPART 1817.73 PHASED ACQUISITION**

1817.7300 Definitions.

1817.7301 Down-selections in phased acquisitions.

1817.7301-1 Pre-solicitation planning.

1817.7301-2 Evaluation factors.

1817.7301-3 Down-selection milestones.

1817.7301-4 Synopsis.

1817.7301-5 Progressive competition.

1817.7302 Contract clauses.

**PART** **1817**

**SPECIAL CONTRACTING METHODS**

**Subpart 1817.1\--Multiyear Contracting**

**1817.105 Policy.**

**1817.105-1 Uses.**

\(b\) The Assistant Administrator for Procurement (Code HS) is the
approval authority for the use of the multiyear contracting technique.
Requests for approval shall be signed by the procurement officer and
shall include a description of the acquisition, identification of
anticipated contract costs and funding, and a determination, with
supporting rationale, that each of the criteria in FAR 17.105-1(b) is
met by the proposed use of multiyear contracting.

**Subpart 1817.2\--Options**

**1817.200 Scope of subpart.**

FAR Subpart 17.2 applies to all NASA contracts.

**1817.203** **Solicitations.**

(g)(2) The procurement officer is authorized to approve option
quantities greater than 50 percent.

**1817.204  Contracts.**

\(e\) **(i)** The 5-year limitation (basic plus option periods) applies
to all NASA contracts regardless of type, except when the time needed to
complete system development or hardware production is greater than five
years.

**(ii)** Requests for deviations from the 5-year limitation policy shall
be sent to the Assistant Administrator for Procurement (Code HS) and
shall include justification for exceeding five years and evidence that
the extended years can be reasonably priced.

**1817.206 Evaluation.**

(b)**(i)** The procurement officer is the approval authority for
determinations by the contracting officer not to evaluate offers for any
option quantities or periods.

**(ii)** Unless a determination has been approved under 1817.206(b)(i),
the selection statement for each acquisition involving an option shall
address the source selection authority\'s consideration of the option as
part of the initial competition.

**1817.207 Exercise of options.**

\(f\) Options under cost type contracts shall contain an estimated cost
for the option period(s).

(f)(2) Use of the provision (or formula) for determining the price of a
fixed price option requires advance approval by the Assistant
Administrator for Procurement (Code HS).

(f (3) (ii) Use of a formula to determine the fee of an option in a
cost-type contract requires advance approval of the Assistant
Administrator for Procurement (Code HS). The formula shall preclude the
contractor from increasing costs for the purpose of earning additional
fee.

**1817.208 Solicitation provisions and** **contract clauses.**

(c)(3) The contracting officer shall insert a provision substantially
the same as FAR 52.217-5 in cost reimbursement contracts when the other
conditions of FAR 17.208(c) are met.

**Subpart 1817.4\--Leader Company Contracting**

**1817.401** **General.**

It is NASA policy not to use the leader company contracting technique.

**Subpart 1817.5\--Interagency Acquisitions Under the Economy Act**

**1817.503 Determinations and findings requirements.**

\(a\) See 1817.72 for additional information on interagency transaction
requirements.

(a)(2) Current market prices, recent acquisition prices, or prices
obtained by informational submissions as provided in FAR 15.201 may be
used to ascertain whether the acquisition can be accomplished more
economically from commercial sources.

\(c\) The Assistant Administrator for Procurement as the agency senior
procurement executive will approve all D&F's for a servicing agency not
covered by the Federal Acquisition Regulations. This approval may not be
delegated below the senior procurement executive level.

**1817.504 Ordering procedures.**

(b)(4) All payment provisions shall require the servicing agency or
department to submit a final voucher, invoice, or other appropriate
payment document within six months after the completion date of the
order. A different period may be specified by mutual agreement if six
months is not sufficient.

**Subpart 1817.70 \--Acquisitions with Military Departments**

**1817.7000** **Scope** **of** **subpart.**

This subpart contains policies and procedures, developed jointly by NASA
and DOD, for acquisition of supplies or services by NASA from or through
the Military Departments.

**1817.7001** **Authorization** **and** **policy.**

\(a\) NASA is authorized by the National Aeronautics and Space Act of
1958 (42 U.S.C. 2451 et seq.) to use the acquisition services,
personnel, equipment, and facilities of the Military Departments, with
their consent and with or without reimbursement, and, on a similar
basis, to cooperate with the Military Departments in the use of
acquisition services, equipment, and facilities.

\(b\) The Military Departments have agreed to cooperate fully with NASA
in making their acquisition services, equipment, personnel, and
facilities available on the basis of mutual agreement.

\(c\) The Military Departments have agreed not to claim reimbursement
for administrative costs incident to acquisitions for NASA, except as
may be otherwise agreed before the services are performed.

\(d\) When procuring supplies or services for NASA or performing field
service functions in support of NASA contracts, the Military Departments
have agreed to use their own methods, except when otherwise required by
the terms of the agreement involved.

\(e\) The Military Departments normally will use their own funds when
procuring supplies or services or performing services for NASA, and will
not cite NASA funds on any Defense obligation or payment document.

**1817.7002** **NASA-Defense** **Purchase** **Request** **and**
**acceptance.**

\(a\) The NASA-Defense Purchase Request (NASA Form 523) shall be used by
NASA contracting offices for requesting acquisition of supplies or
services from all activities of the Military Departments. Individual
NASA-Defense Purchase Requests shall be prepared in accordance with the
instructions on the reverse of NASA Form 523 and shall be numbered in
accordance with Subpart 1804.71. The form shall not be used for
requesting \--

\(1\)  Block transfers of excess property between NASA and the Military
Departments;

\(2\)  Performance by the Military Departments of field service
functions related to NASA contracts; or

\(3\)  Items that the Military Departments normally purchase and stock
for military use or in-house services, except when a DOD activity is
willing to accept the form for these purposes. Supplies and services of
this nature may be requisitioned using appropriate DOD forms when they
are provided by and are acceptable to or preferred by the Military
Department supplying activity or as otherwise mutually agreed upon by
the parties.

\(b\) Include a provision in accordance with 1817.504(b)(4).

\(c\) To obtain materials from the Air Force Missile Procurement Fund,
the contracting officer shall follow the procedures of 1808.002-72.

**1817.7002-1 Acceptance** **by** **Military** **Department.**

\(a\) Except as provided in paragraph (c) of this section, the Military
Department concerned will, within 30 days after receipt of a
NASA-Defense Purchase Request, forward to the initiator of the request
an Acceptance of MIPR, DD Form 448-2. Each DD Form 448-2 will show the
action being taken to fill the requirement and the name and complete
address of the DOD contracting activity.

\(b\) To the extent feasible, all documents (including acceptances,
contracts, correspondence, shipping documents, work or project orders,
and Standard Form 1080 (Voucher for Transfer between Appropriations
and/or Funds) billings) will reference the NASA-Defense Purchase Request
number and the item number.

\(c\) Acceptance by the Military Department is not required for
NASA-Defense Purchase Requests covering deliveries of common-use
standard-stock items that the supplying agency has on hand or on order
for prompt delivery at published prices.

**1817.7002-2** **Changes** **in** **estimated** **total** **prices.**

**PART 1819**

**SMALL BUSINESS PROGRAMS**

# TABLE OF CONTENTS

1819.001 Definitions.

**SUBPART 1819.2 POLICIES**

1819.201 General policy.

**SUBPART 1819.3 DETERMINATION OF SMALL BUSINESS STATUS**

**FOR SMALL BUSINESS PROGRAMS**

1819.302 Protesting a small business representation.

**SUBPART 1819.5 SET-ASIDES FOR SMALL** **BUSINESS**

1819.502 Setting aside acquisitions.

1819.502-70 Non-initiation of set-asides.

1819.502-3 Partial set-asides.

1819.502-370 NASA reporting requirements.

1819.505 Rejecting Small Business Administration recommendations.

1819.506 Withdrawing or modifying small business set-asides.

**SUBPART 1819.6 CERTIFICATES OF** **COMPETENCY AND**

**DETERMINATIONS OF RESPONSIBILITY**

1819.602 Procedures.

1819.602-1 Referral.

1819.602-3 Resolving differences between the agency and the Small
Business

Administration.

1819.602-370 NASA procedures.

**SUBPART 1819.7 THE SMALL BUSINESS SUBCONTRACTING PROGRAM**

1819.705-2 Determining the need for a subcontracting plan.

1819.705-4 Reviewing the subcontracting plan.

1819.705-470 Acquisition-specific subcontracting goals.

1819.708 Contract clauses.

1819.708-70 NASA solicitation provision and contract clause.

**SUBPART 1819.8 CONTRACTING WITH THE** **SMALL BUSINESS**

**ADMINISTRATION** **(THE** **8(a) PROGRAM)**

1819.804 Evaluation, offering, and acceptance.

1819.804-1 Agency evaluation.

**SUBPART   1819.10 SMALL BUSINESS COMPETITIVENESS**

**DEMONSTRATION PROGRAM**

1819.1005 Applicability.

**SUBPART 1819.70 NASA 8 PERCENT GOAL**

1819.7000 General.

1819.7002 Contracting officer responsibility.

1819.7003 Contract clause.

**SUBPART 1819.71 NASA RURAL AREA SMALL BUSINESS PLAN**

1819.7101 Definition.

1819.7102 General.

1819.7103 Solicitation provision and contract clause.

**SUBPART 1819.72 NASA MENTOR-PROTÉGÉ PROGRAM**

1819.7201 Scope of subpart.

1819.7202 Definitions.

1819.7203 Non-affiliation.

1819.7204 Transportability of features from the Department of Defense

(DOD) Mentor-Protégé program to NASA contractors.

1819.7205 General policy.

1819.7206 Incentives for prime contractor participation.

1819.7207 Measurement of Program success.

1819.7208 Mentor firms.

1819.7209 Protégé firms.

1819.7210 Selection of protégé firms.

1819.7211 Application process for mentor firms to participate in the
Program.

1819.7212 OSDBU review and approval process of agreement.

1819.7213 Agreement contents.

1819.7214 Developmental assistance.

1819.7215 Obligation.

1819.7216 Internal controls.

1819.7217 Reports.

1819.7218 Program review.

1819.7219 Solicitation provision and contract clauses.

## PART 1819

**SMALL BUSINESS PROGRAMS**

**1819.001  Definitions.**

**"High-Tech"** as used in this part means research and/or development
efforts that are within or advance the state-of-the-art in a technology
discipline and are performed primarily by professional engineers,
scientists, and highly skilled and trained technicians or specialists.

**Subpart 1819.2\--Policies**

**1819.201 General policy.**

(a)**(i)** NASA is committed to providing to small, veteran-owned small
business, service-disabled veteran-owned small business, HUBZone, small
disadvantaged, and women-owned small business concerns, maximum
practicable opportunities to participate in Agency acquisitions at the
prime contract level. The participation of NASA prime contractors in
providing subcontracting opportunities to such entities is also an
essential part of the Agency\'s commitment. The participation of these
entities is particularly emphasized in high-technology areas where they
have not traditionally dominated.

**(ii)** NASA annually negotiates Agency small, service-disabled
veteran-owned small business, HUBZone, small disadvantaged, and
women-owned small business prime and subcontracting goals with the Small
Business Administration pursuant to section 15(g) of the Small Business
Act (15 U.S.C. 644). In addition, NASA has the following statutory goals
based on the total value of prime and subcontract awards:

**(A)** Under Public Laws 101-144, 101-507, and 102-389, an annual goal
of at least 8 percent for prime and subcontract awards to small
disadvantaged business (SDB) concerns, Historically Black Colleges and
Universities (HBCUs), minority institutions (MIs), and women-owned small
businesses (WOSBs) (see 1819.7000); and

**(B)** Under 10 U.S.C. 2323, an annual goal of 5 percent for prime and
subcontract awards to SDBs, HBCUs, and WOSBs.

\(c\) The Assistant Administrator for Small and Disadvantaged Business
Utilization (Code K) is the Agency official responsible for carrying out
the duties in FAR 19.201(c)**.**

(d)**(i)** The center director shall designate a qualified individual in
the contracting office as a small business specialist to provide a
central point of contact to which small business concerns may direct
inquiries concerning small business matters and participation in NASA
acquisitions. The small business specialist shall also perform other
functions specifically set forth in this section 1819.201 or that the
procurement officer may prescribe, with the concurrence of the Assistant
Administrator for Small and Disadvantaged Business Utilization, for
implementing the Small Business Program. When the center director
considers that the volume of acquisitions or the functions relating to
acquisitions at the center do not warrant a full-time small business
specialist, these duties may be assigned to procurement personnel on a
part-time basis.

**(ii)** Small business specialists appointed under paragraph (d)(i) of
this section shall perform the following duties, as the procurement
officer determines appropriate to the installation:

**(A)** Maintain a program designed to locate capable small business
sources, including those located in labor surplus areas, for current and
future acquisitions.

**(B)**  Coordinate inquiries and requests for advice from small
business concerns on acquisition matters.

**(C)**  Before issuance of solicitations or contract modifications for
additional supplies or services, determine that small business concerns
will receive adequate consideration, including making recommendations
for initiation of set-asides (see FAR 19.5 and 19.8) and for taking
action in accordance with FAR 19.506(b) and 1819.502-70. Participate and
provide input early in the acquisition planning phase of proposed
acquisitions, including acquisition strategy meetings.

**(D)** If small business concerns cannot be given an opportunity to
compete because adequate specifications or drawings are not available,
work with appropriate technical and contracting personnel to ensure that
necessary specifications or drawings for current or future acquisitions
will be available.

**(E)**  Review acquisitions for possible breakout of items suitable for
acquisition from small business concerns.

**(F)**  Advise small business concerns regarding financial assistance
available under laws and regulations, assist such concerns in applying
for such assistance, and ensure that small business concerns\' requests
for financial assistance are not treated as a handicap in securing the
award of contracts.

**(G)**  Participate in responsibility determinations (see FAR 9.103)
when small business concerns are involved.

**(H)**  Participate in the evaluation of prime contractors\' small
business subcontracting programs (see FAR 19.705-4).

**(I)**  Review and make appropriate recommendations to the contracting
officer on any proposal to furnish Government-owned facilities to a
contractor if such action may hurt the Small Business Program.

**(J)**  Ensure that participation of small business concerns is
accurately reported.

**(K)** Make available to SBA copies of solicitations when requested.

**(L)** Act as liaison between contracting officers and SBA area offices
and representatives in connection with set-asides, certificates of
competency, and any other matters in which the Small Business Program
may be involved.

**(M)** In cooperation with contracting officers and technical
personnel, seek and develop information on the technical competence of
small business concerns for research and development contracts.
Regularly bring to the attention of contracting officers and technical
personnel descriptive data, brochures, and other information regarding
small business concerns that are apparently competent to perform
research and development work in fields in which NASA is interested.

**(N)**  When a small business concern\'s offer has been rejected for
nonresponsiveness or nonresponsibility, assist that concern, upon its
request, in understanding such requirements for future awards.

**(O)** Advise center personnel, as necessary, on new Governmentwide and
Agency-approved small business programs and initiatives.

(f)(1) The NASA Ombudsman, the Director of the Contract Management
Division (Code HK), is the designated official for determining whether
the use of the SDB mechanism in FAR Subpart 19.11 has resulted in an
undue burden on non-SDB firms in the Department of Commerce designated
NAICS Major Groups, or is otherwise inappropriate.

**Subpart 1819.3\--Determination of Small Business Status for Small
Business Programs**

**1819.302** **Protesting** **a** **small** **business**
**representation.**

(d)(1) The contracting officer shall not make awards of small business
set-aside acquisitions before the expiration of the period for receipt
of a size standard protest.

**Subpart 1819.5\--Set-Asides for Small Business**

**1819.502**  **Setting** **aside** **acquisitions.**

**1819.502-70 Non-initiation of set-asides.**

\(a\) All cases involving the non-initiation of a set-aside, whether
resulting from a joint decision of the small business specialist and the
contracting officer or a decision by the contracting officer alone,
require referral to the SBA representative (if one is assigned and
available) for review.

\(b\) If the small business specialist recommends that an individual
acquisition or a class of acquisitions, or a portion thereof, be set
aside, the contracting officer shall promptly either concur in or
disapprove the recommendation, stating in writing the reasons for
disapproval.

\(c\) When an SBA representative is assigned and available and the
contracting officer disapproves the small business specialist\'s
recommendation, the contracting officer shall promptly refer the case to
the SBA representative for review. The small business specialist shall
take no further appeal action. The SBA representative must either concur
with the decision or appeal the case to the procurement officer under
FAR 19.505. If the procurement officer approves the contracting
officer's decision and the SBA appeals under FAR 19.505(c), the
procurement officer shall forward the required written justification,
including a history of discussions between the center and the SBA and
rationale for the decision, to the Headquarters Office of Procurement
(HS).

\(d\) When an SBA representative is not assigned or available and the
contracting officer disapproves the small business specialist\'s
recommendation, the small business specialist may appeal in writing to
the procurement officer. The procurement officer's decision shall be
final. The contracting officer shall place a memorandum of the
procurement officer\'s decision in the contract file. If the procurement
officer's decision approves the contracting officer\'s action, the small
business specialist shall forward complete documentation of the case to
the Headquarters Office of Small and Disadvantaged Business Utilization
(Code K).

\(e\) The contracting officer shall prepare, sign, and retain in the
contract file a memorandum of nonconcurrence in a recommended set-aside
action.

**1819.502-3 Partial set-asides.**

**1819.502-370 NASA Reporting Requirements.**

The contracting officer shall separately report, in accordance with
Subpart 1804.6, awards of the non-set-aside portions of small business
set-aside acquisitions.

**1819.505 Rejecting Small Business Administration recommendations**.

See 1819.502-70.

**1819.506 Withdrawing or modifying small business set-asides.**

\(b\) If an SBA representative is not assigned or available, and the
small business specialist disagrees with the contracting officer's
written decision of withdrawal or modification of a set-aside
determination, the small business specialist may appeal to the
procurement officer in accordance with the procedures in 1819.502-70(d).

**Subpart 1819.6\--Certificates of Competency and Determinations of
Responsibility**

**1819.602 Procedures.**

**1819.602-1 Referral.**

\(a\) On proposed awards exceeding the simplified acquisition threshold,
the contracting officer should consider requesting a preaward survey
(see FAR 9.106) before determining that a responsive small business firm
is not responsible. The scope of the preaward survey request should be
limited to those elements of responsibility that are questioned.

\(2\) The contracting officer shall forward a copy of the referral to
SBA through the procurement officer to the Headquarters Office of Small
and Disadvantaged Business Utilization (Code K).

**1819.602-3 Resolving** **differences** **between** **the** **agency**
**and** **the Small Business** **Administration.**

**1819.602-370 NASA Procedures.**

\(a\) When agreement cannot be reached between the contracting officer
and the SBA Area Office, the contracting officer shall forward to the
Headquarters Office of Procurement (Code HS) on an expedited basis, a
complete case file with a request that the case be considered for appeal
to SBA Headquarters. The contracting officer shall include the data
already furnished to SBA, SBA\'s rationale for proposing to issue a COC,
and the contracting officer\'s comments. The contracting officer shall
suspend acquisition action until informed by Code HS of the final
decision in the case.

\(b\) If the Office of Procurement concludes that the referral to SBA
should be withdrawn and a contract awarded without benefit of a COC,
Code HS shall inform the contracting officer.

\(c\) If the Office of Procurement agrees with the contracting
officer\'s recommended appeal action, the Assistant Administrator for
Procurement shall forward the appeal through the Office of Small and
Disadvantaged Business Utilization (Code K) to SBA Headquarters.

**Subpart 1819.7\--The Small Business Subcontracting Program**

**1819.705-2 Determining the need for a subcontracting plan.**

\(d\) Solicitations for competitive negotiated acquisitions shall
require proposed subcontracting plans with initial proposals (see
1819.708(b)(1)). For sole source negotiated acquisitions, the contractor
shall be required to submit a proposed subcontracting plan with the
proposal.

**1819.705-4 Reviewing the subcontracting plan.**

**1819.705-470 Acquisition-specific subcontracting goals.**

Section 1819.201 addresses Agencywide goals at the combined prime and
subcontract levels. Appropriate subcontracting goals for an individual
acquisition, however, are to be independently determined on the basis of
the specific circumstances of the acquisition, consistent with FAR
19.705-4 and 1819.7002(b), and not on the basis of an Agencywide or
center goal. Acquisition-specific subcontracting goals should reflect
maximum practicable opportunities for all categories of small business
concerns to participate in NASA programs, consistent with efficient
performance. The methods outlined in NASA Policy Directive (NPD) 5000.2,
Uniform Methodology for Determination of Small Disadvantaged
Subcontracting Goals, may also be useful in establishing reasonable
subcontracting goals for small, veteran-owned small business,
service-disabled veteran-owned small business, HUBZone, and women-owned
small business concerns.

**1819.708 Contract clauses.**

(b)(1) The contracting officer shall use the clause at FAR 52.219-9 with
its Alternate II when contracting by negotiation.

**1819.708-70** **NASA solicitation provision** **and contract clause.**

\(a\) The contracting officer shall insert the provision at 1852.219-73,
Small Business Subcontracting Plan, in invitations for bids containing
the clause at FAR 52.219-9 with its Alternate I. Insert in the last
sentence the number of calendar days after request that the offeror must
submit a complete plan.

\(b\) The contracting officer shall insert the clause at 1852.219-75,
Small Business Subcontracting Reporting, in solicitations and contracts
containing the clause at FAR 52.219-9, except for contracts covered by
an approved commercial plan.

**Subpart 1819.8\--Contracting with the Small Business Administration**

**(The 8(a) Program)**

**1819.804** **Evaluation, offering, and** **acceptance.**

**1819.804-1 Agency evaluation.**

The small business specialist shall review and evaluate all acquisition
requirements to determine their suitability for offering to SBA for 8(a)
acceptance and make a recommendation to the contracting officer
concerning award to SBA.

**Subpart** **1819.10\--Small Business Competitiveness Demonstration
Program**

**1819.1005 Applicability.**

\(b\) The targeted industry categories for NASA and their North American
Industry Classification System (NAICS) codes are:

  -------------- --------------------------------------------------------
  **NAICS Code** **Industry Category**

  334111         Electronic Computer Manufacturing

  334418         Printed Circuit Assembly (Electronic Assembly)
                 Manufacturing

  334613         Magnetic and Optical Recording Media Manufacturing

  334119         Other Computer Peripheral Equipment Manufacturing

  33422          Radio and Television Broadcasting and Wireless
                 Communication Equipment Manufacturing

  336415         Guided Missile and Space Vehicle Propulsion Unit and
                 Propulsion Unit Parts Manufacturing

  54171          Research and Development in the Physical Engineering and
                 Life Sciences

  336419         Other Guided Missile and Space Vehicle Parts and
                 Auxiliary Equipment Manufacturing

  334511         Search, Detection, Navigation, Guidance, Aeronautical,
                 and Nautical Systems and Instrument Manufacturing

  333314         Optical Instrument and Lens Manufacturing

  541511         Custom Computer Programming Services

  541512         Computer Systems Design Services

  51421          Data Processing Services

  541519         Other Computer Related Services
  -------------- --------------------------------------------------------

**Subpart 1819.70\--NASA 8 Percent Goal**

**1819.7000 General.**

Public Laws 101-144, 101-507, and 102-389 require the NASA Administrator
to ensure, to the fullest extent possible, that at least 8 percent of
Federal funding for prime and subcontracts awarded in support of
authorized programs, including the space station by the time operational
status is obtained, be made available to small disadvantaged business
concerns, Historically Black Colleges and Universities, minority
institutions, and women-owned small business concerns.

**1819.7002 Contracting officer responsibility.**

\(a\) Contracting officers must seek out as potential sources entities
identified in 1819.7001 and give full consideration to these entities to
satisfy NASA requirements. The participation of NASA prime contractors
is also essential to meeting the Agency's 8 percent goal.

\(b\) NASA Policy Directive (NPD) 5000.2, Uniform Methodology for
Determination of Small Disadvantaged Subcontracting Goals, contains
guidance on developing realistic goals. It is applicable to acquisitions
expected to exceed \$50 million, including options. The methodology may
be used for lesser value acquisitions.

**1819.7003 Contract clause.**

The contracting officer shall insert the clause at 1852.219-76, NASA 8
Percent Goal, in all solicitations and contracts other than those below
the simplified acquisition threshold or when the contract, together with
all its subcontracts, is to be performed entirely outside of any State,
territory, or possession of the United States, the District of Columbia,
the Commonwealth of Puerto Rico, and the Trust Territory of the Pacific
Islands.

**Subpart 1819.71\--NASA Rural Area Small Business Plan**

**1819.7101 Definition.**

**\"Rural area\"** means a county with a population of fewer than twenty
thousand individuals.

**1819.7102 General.**

Pursuant to Public Law 100-590, NASA established a Rural Area Business
Enterprise Development Plan, including methods for encouraging prime and
subcontractors to use small business concerns located in rural areas as
subcontractors and suppliers. One method is to encourage the contractor
to use its best efforts to comply with the intent of the statute.

**1819.7103 Solicitation provision and** **contract clause.**

The contracting officer shall insert the clause at 1852.219-74, Use of
Rural Area Small Businesses, in solicitations and contracts that offer
subcontracting possibilities or that are expected to exceed \$500,000
(\$1,000,000 for construction of public facility) unless the contract,
together with all its subcontracts, is to be performed entirely outside
of any State, territory, or possession of

## PART 1822

**APPLICATION OF LABOR LAWS TO GOVERNMENT ACQUISITIONS**

**TABLE OF CONTENTS**

1822.000-70 Scope of part.

**SUBPART 1822.1 BASIC LABOR POLICIES**

1822.101 Labor relations.

1822.101-1 General.

1822.101-3 Reporting labor disputes.

1822.101-4 Removal of items from contractors\' facilities affected
by work

stoppages.

1822.101-70 Admission of labor representatives to contract sites.

1822.103 Overtime.

1822.103-4 Approvals.

1822.103-5 Contract clauses.

**SUBPART 1822.3 CONTRACT WORK HOURS AND SAFETY STANDARDS ACT**

1822.302 Liquidated damages and overtime pay.

**SUBPART 1822.4 LABOR STANDARDS FOR CONTRACTS INVOLVING CONSTRUCTION**

1822.400-70 Contacts with the Department of Labor.

1822.404-3 Procedures for requesting wage determinations.

1822.406-8 Investigations.

1822.406-9 Withholding from or suspension of contract payments.

1822.406-13 Semiannual enforcement reports.

**SUBPART 1822.6 WALSH-HEALEY PUBLIC** **CONTRACTS ACT**

1822.604 Exemptions.

1822.604-2 Regulatory exemptions.

**SUBPART 1822.8 EQUAL EMPLOYMENT** **OPPORTUNITY**

1822.804 Affirmative action programs.

1822.804-2 Construction.

1822.807 Exemptions.

1822.810 Solicitation provisions and contract clauses.

**SUBPART 1822.10 SERVICE CONTRACT ACT** **OF 1965**

1822.1001 Definitions.

1822.1008 Procedures for preparing and submitting Notice (SF 98/98a).

1822.1008-270 Additional information for the preparation of SF 98/98a.

1822.1008-7 Required time of submission of Notice.

**SUBPART 1822.13 SPECIAL DISABLED VETERANS, VETERANS OF THE VIETNAM
ERA, AND OTHER ELIGIBLE VETERANS**

1822.1305 Waivers.

1822.1308 Complaint procedures.

**SUBPART 1822.14 EMPLOYMENT OF WORKERS WITH DISABILITIES**

1822.1403 Waivers.

1822.1406 Complaint procedures.

**SUBPART 1822.15 PROHIBITION OF ACQUISITION OF PRODUCTS**

#  PRODUCED BY FORCED OR INDENTURED CHILD

#  LABOR

1822.1503 Procedures for acquiring end products on the List of Products

Requiring Contractor Certification as to Forced or Indentured

Child Labor.

**PART 1822**

**APPLICATION OF LABOR LAWS TO GOVERNMENT ACQUISITIONS**

**1822.000-70 Scope of part.**

\(a\) Contracting officers shall consult with the installation labor
relations advisor or designee when taking any of the actions prescribed
or authorized in FAR Part 22 or NFS Part 1822.

\(b\) Proposed actions having a substantial impact on the activities of
NASA or other Government agencies shall be approved by the Headquarters
Contractor Industrial Relations Office (Code JR).

**Subpart 1822.1\--Basic Labor Policies**

**1822.101 Labor** **relations.**

**1822.101-1 General.**

\(d\) When a strike that may have an adverse effect on NASA programs is
imminent or in progress at a prime contractor\'s or subcontractor\'s
plant, contracting officers shall:

**(i)** Advise both the prime contractor and the head of the union local
in writing of the expected impact of the strike on NASA programs and of
the actions NASA is considering to protect the Government\'s interest
and prevent delay in the accomplishment of NASA\'s mission. If the
strike is in a subcontractor\'s plant, the subcontractor may be
approached only through the prime contractor;

**(ii)** Explore the possibility of locating other sources for the
supplies or services to have been provided by the strike-threatened
plant; and

**(iii)** Consider taking the actions described in FAR 22.101-4.

\(e\) Programs or requirements that result in contracts in excess of the
simplified acquisition threshold shall require contractors to notify
NASA of actual or potential labor disputes that are delaying or threaten
to delay timely contract performance.

**1822.101-3**  **Reporting** **labor** **disputes.**

Reports of potential or actual labor disputes affecting NASA
acquisitions, operations, or services shall be submitted to the
Headquarters Contractor Industrial Relations Office (Code JR). These
reports shall be made as early as possible and shall include immediately
available information. Supplemental reports shall be made to provide
appropriate additional information. Reports shall describe at a minimum:

**(1)** The nature of the potential or actual dispute, including whether
a strike, lockout, slow-down, shut-down, or picketing is involved and
the degree of emergency presented;

**(2)** The character, quantity, and importance of the supplies,
operations, or services involved, including scheduled performance and
delivery dates and their relationship to the total acquisition program;

**(3)** The identity and location of the parties to the dispute and
their representatives, including the approximate number of employees
involved;

**(4)** The need for and availability of alternative resources to
furnish the items involved within the time required;

**(5)** Any critical items that should be removed from the plant or work
site or should continue to be processed there with the consent of the
parties to the dispute; and

**(6)** Recommended action to be taken by NASA.

**1822.101-4** **Removal** **of** **items** **from** **contractors\'**
**facilities** **affected** **by** **work** **stoppages.**

(a)(3) The contracting officer shall obtain approval from Code JR for
any contemplated action.

**1822.101-70 Admission of labor representatives to contract sites.**

NASA activities may not prevent the access of labor union
representatives to contract sites for the conduct of union business if
their activities are compatible with safety and security regulations and
performance of the contract work involved.

**1822.103  Overtime.**

**1822.103-4  Approvals.**

\(a\) The contracting officer is authorized to approve overtime premiums
at Government expense. If two or more contracting offices have current
contracts at a single facility and approval of overtime by one will
affect the performance or cost of contracts of another, the approving
official shall obtain the concurrence of other appropriate approving
officials and seek agreement as to the contracts under which premiums
will be approved. In the absence of evidence to the contrary, a
contracting officer may rely on the contractor\'s statement that
approval will not affect performance or payments under any contract of
another contracting office.

**1822.103-5 Contract clauses.**

(a) See 1822.101-1(e).

**Subpart 1822.3\--Contract Work Hours and Safety Standards Act**

**1822.302  Liquidated damages and** **overtime pay.**

\(c\) The Director of the Headquarters Contractor Industrial Relations
Office (Code JR) is the agency head designee.

\(d\) Disposal of funds withheld or collected for liquidated damages
shall be in accordance with direction of the Director of Code JR.

**Subpart 1822.4\--Labor Standards for Contracts Involving
Construction**

**1822.400-70 Contacts with the Department of Labor.**

All contacts with the Department of Labor required by FAR Subpart 22.4,
except for wage determinations, shall be conducted through the
Headquarters Contractor Industrial Relations Office (Code JR).
Contracting officers shall submit all pertinent information to Code JR
in support of Code JR for contacts. For wage determinations, contracting
officers shall submit all requests directly to Goddard Space Flight
Center, Contractor Industrial Relations Office - GSFC, Code 201,
Greenbelt, Maryland 20771 (GSFC).

**1822.404-3  Procedures for requesting** **wage determinations.**

Contracting officers shall submit requests for project wage
determinations to GSFC at least 55 days (70 days if possible) before
issuing the solicitation.

**1822.406-8 Investigations.**

\(a\) The contracting officer is responsible for conducting
investigations of labor violations relative to contracts under their
cognizance.

\(d\) Reports of violations shall be sent to Code JR.

**1822.406-9 Withholding from or suspension of contract payments.**

(c)(4) Code JR shall determine the disposal of funds.

**1822.406-13  Semiannual enforcement** **reports.**

Procurement officers shall submit semiannual enforcement data within 20
days after the end of the specified reporting periods to the
Headquarters Office of Procurement (Code HK). Negative statements are
required.

**Subpart 1822.6\--Walsh-Healey Public Contracts Act**

**1822.604 Exemptions.**

**1822.604-2**  **Regulatory exemptions.**

\(b\) Requests for exemptions shall be submitted in writing through the
contracting officer to the Headquarters Contractor Industrial Relations
Office (Code JR).

**Subpart 1822.8\--Equal Employment Opportunity**

**1822.804 Affirmative** **action** **programs.**

**1822.804-2 Construction.**

\(b\) The Headquarters Office of Procurement (Code HK) will furnish each
procurement officer the listing.

**1822.807 Exemptions.**

Requests for exemption pursuant to FAR 22.807(a)(1), (a)(2), or (b)(5)
shall be sent to the Headquarters Office of Procurement (Code HS).

**1822.810 Solicitation provisions and contract clauses.**

\(e\) If an offeror completes a negative representation under FAR
52.222-22, the contracting officer shall obtain the information required
by FAR 52.222-26(b)(7) within 30 days of contract award. This
information shall be held in confidence as privileged information in
accordance with 32 CFR 286.6(b)(4).

**Subpart 1822.10\--Service Contract Act of 1965**

**1822.1001 Definitions.**

**\"Agency labor advisor\"** is the Director of the Headquarters
Contractor Industrial Relations Office (Code JR). All contacts with
other agencies required by FAR Subpart 22.10 shall be conducted through
Code JR. Contracting officers shall submit all pertinent information to
Code JR in support of the required contacts.

**1822.1008 Procedures for preparing and** **submitting Notice (SF
98/98a).**

**1822.1008-270 Additional information for the preparation of SF
98/98a.**

The information listed below by item number shall be furnished, in
addition to that required by the SF 98/98a:

\(a\) **Item 6***.* Insert on the far left side of the block the code
identifying the type of proposed action:

+-----+----------------------------------------------------------------+
| **  | # Proposed Action                                              |
| Cod |                                                                |
| e** |                                                                |
+-----+----------------------------------------------------------------+
| **  | New contract (use [only]{.underline} when services are not     |
| I** | presently being performed).                                    |
+-----+----------------------------------------------------------------+
| **I | Recompetition of services.                                     |
| I** |                                                                |
+-----+----------------------------------------------------------------+
| *   | Contract modifications affecting the scope of the work.        |
| *II |                                                                |
| I** |                                                                |
+-----+----------------------------------------------------------------+
| **I | Extension of contract performance through exercise of an       |
| V** | option or otherwise.                                           |
+-----+----------------------------------------------------------------+
| **  | Other. When a multiple year contract (funding is not subject   |
| V** | to annual appropriation) is to be entered into, specify        |
|     | \"multiple year R&D funded\" on the SF 98.                     |
+-----+----------------------------------------------------------------+

\(b\) **Item 8.**

\(1\) If the proposed contract will be awarded under Section 8(a) of the
Small Business Act, insert both the Small Business Administration and
the name of the subcontractor.

\(2\) If no wage determination is available for the particular contract,
insert \"None\" in Item 8.b.

\(c\) **Item 10***.*  Add the solicitation number.

\(d\) **Item 12.**

\(1\) When entering into a new service contract, list all classes of
work expected to be performed under the contract under this item,
regardless of whether the class of employees is considered professional,
executive, administrative, or hourly. However, if submission of the SF
98/98a is in connection with any action other than a new contract (Code
I in paragraph (a) of this subsection), list only the classes of work
that the incumbent indicates are \"nonexempt.\"

\(2\) When classifications include both categories of employees covered
by a collective bargaining agreement and those not represented by a
union, mark the classifications that are unionized with an asterisk.

\(3\) If the classification of work is not known, use the most
descriptive job title available for the work to be performed under the
contract.

\(e\) **Item 13***.* If the number of employees is not known, the
estimated hours required to perform the tasks should be indicated so
that staffing estimates can be determined and listed.

\(f\) **Item 14.** Include in this item the wage rates that would be
paid if the employees were subject to 5 U.S.C. 5332 (GS grades).

**1822.1008-7 Required time of submission of notice.**

\(a\) Contracting officers shall submit the notices to Goddard Space
Flight Center, Contract Industrial Relations Office - GSFC, Code 201,
Greenbelt, Maryland 20771 (GSFC) at least 70 days before initiating the
associated contract actions.

\(b\) When the circumstances in FAR 22.1008-7(b) apply, contracting
officers shall submit the required notices to GSFC at least 40 days
before initiating the associated contract actions.

\(c\) Contracting officers shall contact GSFC before initiating any
action when the circumstances in FAR 22.1008-7(c) and (d) apply.

**Subpart 1822.13\--Special Disabled Veterans, Veterans of the Vietnam
ERA,**

**and Other Eligible Veterans**

**1822.1305 Waivers.**

\(c\) Requests for waivers shall be submitted to the Assistant
Administrator for Equal Opportunity Programs (Code E).

**1822.1308** **Complaint** **procedures.**

Contracting officers shall submit all complaints to the Assistant
Administrator for Equal Opportunity Programs (Code E).

**Subpart** **1822.14\--Employment of Workers with Disabilities**

**1822.1403 Waivers.**

\(c\) Requests for waivers shall be submitted to the Assistant
Administrator for Equal Opportunity Programs (Code E).

**1822.1406**  **Complaint** **procedures.**

Contracting officers shall submit all complaints to the Assistant
Administrator for Equal Opportunity Programs (Code E).

**Subpart 1822.15\--Prohibition of Acquisition of Products Produced by
Forced or**

**Indentured Child Labor**

**1822.1503 Procedures for acquiring end products on the List of
Products Requiring Contractor Certification as to Forced or Indentured
Child Labor.**

\(e\) All investigations under FAR Subpart 22.15 shall be referred to
NASA's Office of Inspector General.

**PART 1823\
ENVIRONMENT, ENERGY AND WATER EFFICIENCY, RENEWABLE ENERGY TECHNOLOGIES,
OCCUPATIONAL SAFETY, AND DRUG-FREE WORKPLACE**

**TABLE OF CONTENTS**

## 

## SUBPART 1823.2 ENERGY AND WATER EFFICIENT AND

##  RENEWABLE ENERGY

1823.203 Energy-efficient products.

**SUBPART 1823.3** **HAZARDOUS MATERIAL IDENTIFICATION AND**\
**                                          MATERIAL SAFETY DATA**\
1823.370                Acquisition of potentially hazardous items from
or through\
                                          another Government agency.

##  SUBPART 1823.4 USE OF RECOVERED MATERIALS

1823.404 Agency affirmative procurement programs.

**SUBPART 1823.5  DRUG-FREE WORKPLACE**\
1823.570 Drug-and alcohol-free workforce.\
1823.570-1             Scope.\
1823.570-2             Definitions.\
1823.570-3             Contract clause.\
1823.570-4             Suspension of payments, termination of contract,
and\
                                          debarment and suspension
actions.

## SUBPART 1823.7 CONTRACTING FOR ENVIRONMENTALLY

##  PREFERABLE PRODUCTS AND SERVICES 

1823.703 Policy.

**SUBPART 1823.70   SAFETY AND HEALTH**\
1823.7001 NASA solicitation provisions and contract clauses.

**SUBPART 1823.71  FREQUENCY AUTHORIZATION**\
1823.7101              Contract clause.\
1823.7102              Procedures.

**PART 1823\
ENVIRONMENT, ENERGY AND WATER EFFICIENCY, RENEWABLE ENERGY TECHNOLOGIES,
OCCUPATIONAL SAFETY, AND DRUG-FREE WORKPLACE**

## Subpart 1823.2\--Energy and Water Efficiency and Renewable Energy

1823.203 Energy-efficient products.

Responsibility, policy and procedures for NASA's implementation of FAR
23.203, including cost-effectiveness, are described in NPG 8570.1,
"Energy Efficiency and Water Conservation Technologies and Practices."

**Subpart ****1823.3\--Hazardous Material Identification and Material
Safety Data**

**1823.370**  **Acquisition of** **potentially** **hazardous** **items**
**from or through another** **Government** **agency.**\
When acquiring supplies or services from or through another Government
agency (e.g., see FAR Part 8 and FAR Subpart 17.5), NASA shall request
that agency to furnish NASA the data required by FAR Subpart 23.3.

##  Subpart 1823.4\--Use of Recovered Materials

**1823.404 Agency affirmative procurement programs.**

NASA's affirmative procurement program is described in the Affirmative
Procurement Plan for Environmentally Preferable Products (NPG 8830.1).

**Subpart ****1823.5\--Drug-Free Workplace**

**1823.570  Drug-and alcohol-free workforce.**

**1823.570-1  Scope.**\
Sections 1823.570 to 1823.570-4 set forth NASA requirements for
mandatory drug and alcohol testing of certain contractor personnel under
section 203, National Aeronautics and Space Act of 1958, as amended, 42
U.S.C. 2473, 72 Stat. 429; and Civil Space Employee Testing Act of 1991,
Public Law 102-195, sec. 21, 105 Stat. 1616 to 1619.

**1823.570-2  Definitions.**\
As used in this subpart **employee** and **controlled substance** are as
defined in FAR 23.503. The use of a controlled substance in accordance
with the terms of a valid prescription, or other uses authorized by law
shall not be subject to the requirements of 1823.570 to 1823.570-4 and
the clause at 1852.223-74.\
**  \"Employee in a sensitive position\"** means a contractor or
subcontractor employee who has been granted access to classified
information; a contractor or subcontractor employee in other positions
that the contractor or subcontractor determines could reasonably be
expected to affect safety, security, National security, or functions
other than the foregoing requiring a high degree of trust and
confidence; and includes any employee performing in a position
designated \"mission critical\" pursuant to the clause at 1852.246-70.
The term also includes any applicant who is interviewed for a position
described in this paragraph.\
**  \"Use, in violation of applicable law or Federal regulation, of
alcohol\"** includes having, while on duty or during a preemployment
interview, an alcohol concentration of 0.04 percent by weight or more in
the blood, as measured by chemical test of the individual\'s breath or
blood. An individual\'s refusal to submit to such test is presumptive
evidence of use, in violation of applicable law or Federal regulation,
of alcohol.

**1823.570-3  Contract clause.**\
  The contracting officer shall insert the clause at 1852.223-74,
\"Drug- and Alcohol-Free Workforce,\" in all solicitations and contracts
containing the clause at 1852.246-70, \"Mission Critical Space Systems
Personnel Reliability Program,\" and in other solicitations and
contracts exceeding \$5 million in which work is performed by an
employee in a sensitive position. However, the contracting officer shall
not insert the clause at 1852.223-74 in solicitations and contracts for
commercial items (see FAR Parts 2 and 12).

**1823.570-4  Suspension of payments, termination of contract, and
debarment** **and suspension actions.**\
The contracting officer shall comply with the procedures of FAR 23.506
regarding the suspension of contract payments, the termination of the
contract for default, and debarment and suspension of a contractor
relative to failure to comply with the clause at 1852.223-74. Causes for
suspension of contract payments, termination of the contract for
default, and debarment and suspension of the contractor are the
following:

(a) The contractor fails to comply with paragraph (b), (c), or (d) of
the clause at 1852.223-74; or\
  (b) Such a number of contractor employees in sensitive positions
having been convicted of violations of criminal drug statutes or
substantial evidence of drug or alcohol abuse or misuse occurring in the
workplace, as to indicate that the contractor has failed to make a good
faith effort to provide a drug- and alcohol-free workforce.

## Subpart 1823.7\--Contracting for Environmentally Preferable Products and Services

**1823.703 Policy.**

Responsibility, policy and procedures for NASA's implementation of FAR
23.703 is described in NPG 8570.1, "Energy Efficiency and Water
Conservation Technologies and Practices".

**Subpart ****1823.70\--Safety and Health**

**1823.7001  NASA solicitation provisions and contract clauses.**\
(a) The clause at 1852.223-70, Safety and Health, shall be included in
all solicitations and contracts when one or more of the following
conditions exist:

\(1\) The work will be conducted completely or partly on premises owned
or controlled by the Government.

\(2\) The work includes construction, alteration, or repair of
facilities in excess of the simplified acquisition threshold.

\(3\) The work, regardless of place of performance, involves hazards
that could endanger the public, astronauts and pilots, the NASA
workforce (including contractor employees working on NASA contracts), or
high value equipment or property, and the hazards are not adequately
addressed by Occupational Safety and Health Administration (OSHA) or
Department of Transportation (DOT) regulations (if applicable).

\(4\) When the assessed risk and consequences of a failure to properly
manage and control the hazard(s) warrants use of the clause.

\(b\) The clause prescribed in paragraph (a) of this section may be
excluded, regardless of place of performance, when the contracting
officer, with the approval of the installation official(s) responsible
for matters of safety and occupational health, determines that the
application of OSHA and DOT regulations constitutes adequate safety and
occupational health protection.

\(c\) The contracting officer shall insert the provision at 1852.223-73,
Safety and Health Plan, in solicitations containing the clause at
1852.223-70. This provision may be modified to identify specific
information that is to be included in the plan. After receiving the
concurrence of the center safety and occupational health official(s),
the contracting officer shall include the plan in any resulting
contract. Insert the provision with its Alternate I, in Invitations for
Bid containing the clause at 1852.223-70.

\(d\) The contracting officer shall insert the clause at 1852.223-75,
Major Breach of Safety or Security, in all solicitations and contracts
with estimated values of \$500,000 or more, unless waived at a level
above the contracting officer with the concurrence of the project
manager and the installation official(s) responsible for matters of
security, export control, safety, and occupational health.  For other
contracts, use of the clause is optional.

\(e\) For all solicitations and contracts exceeding the micro-purchase
threshold that do not include the clause at 1852.223-70, Safety and
Health, the contracting officer shall insert the clause at 1852.223-72,
Safety and Health (Short Form).

**Subpart ****1823.71\--Frequency Authorization**

**1823.7101**  **Contract clause.**\
  The contracting officer shall insert the clause at 1852.223-71,
Frequency Authorization, in solicitations and contracts calling for
developing, producing, constructing, testing, or operating a device for
which a radio frequency authorization is required.

**1823.7102  Procedures.**\
  The contracting officer shall obtain the necessary frequency
authorization and other procedural details from the installation\'s
spectrum manager.

PART 1825

**FOREIGN ACQUISITION**

**TABLE OF CONTENTS**

1825.000 Definitions.

1825.003-70 NASA definitions.

**SUBPART 1825.1 BUY AMERICAN ACT\--SUPPLIES**

1825.103 Exceptions

**SUBPART 1825.4 TRADE AGREEMENTS**

1825.400 Scope of subpart.

**SUBPART 1825.9 CUSTOMS AND DUTIES**

1825.901 Policy.

1825.903 Exempted supplies.

**SUBPART 1825.10 ADDITIONAL FOREIGN ACQUISITION**

**REGULATIONS**

1825.1001 Waiver of right to examination of records.

1825.1002 Use of foreign currency.

**SUBPART 1825.11 SOLICITATION PROVISIONS AND CONTRACT**

**CLAUSES**

1825.1101 Acquisition of Supplies.

1825.1103 Other provisions and clauses.

1825.1103-70 Export control.

**SUBPART 1825.70 FOREIGN CONTRACTS AND INTERNATIONAL**

**AGREEMENT CLEARANCES**

1825.7000 Scope of subpart.

1825.7001 Definition.

1825.7002 Foreign Contracts.

1825.7003 International Agreements.

**PART 1825**

**FOREIGN ACQUISITION**

**1825.003 Definitions.**

**1825.003-70 NASA definitions.**

**\"Canadian end product",** for an item with an estimated value of
\$25,000 or less, means an unmanufactured end product mined or produced
in Canada or an end product manufactured in Canada, if the cost of its
components mined, produced, or manufactured in Canada or the United
States exceeds 50 percent of the cost of all its components. The cost of
components includes transportation costs to the place of incorporation
into the end product. For an end product with an estimated value in
excess of \$25,000, the definition at FAR 25.401 applies.

**Subpart 1825.1\--Buy American Act\--Supplies**

**1825.103 Exceptions.**

(a)**(i)** The procurement officer shall send proposed public interest
determinations to the Assistant Administrator for Procurement (Code HS)
for approval.

**(ii)** The Assistant Administrator for Procurement has determined that
it is inconsistent with the public interest to apply restrictions of the
Buy American Act to Canadian end products with estimated values of
\$25,000 or less as defined in 1825.003-70. Accordingly, contracting
officers must evaluate all offers for such Canadian end products on a
parity with offers for domestic end products, except that applicable
duty (whether or not a duty free entry certificate may be issued) must
be included in evaluating offers for Canadian end products.

**Subpart 1825.4\--Trade Agreements**

**1825.400 Scope of subpart.**

\(b\) The Buy American Act and the Balance of Payments Program apply to
all acquisitions of Japanese end products or services in excess of
\$2,500.

**Subpart** **1825.9\--Customs and Duties**

**1825.901 Policy.**

NASA has statutory authority to exempt certain articles from import
duties, including articles that will be launched into space, spare parts
for such articles, ground support equipment, and unique equipment used
in connection with an international program or launch service agreement.
This authority is fully described in 14 CFR 1217.

**1825.903 Exempted supplies.**

\(a\) Through delegation from the Assistant Administrator for
Procurement, Procurement Officers are authorized to certify duty free
entry for articles imported into the United States, if those articles
are procured by NASA or by other U.S. Government agencies, or by U.S.
Government contractors or subcontractors when title to the articles is
or will be vested in the U.S. Government in accordance with the terms of
the contract or subcontract. Procurement officers shall complete the
certification set forth in 14 CFR 1217.104(a) or 1217.104(c)

(http://www.access.gpo.gov/nara/cfr/cfr-retrieve.html - page1). Upon
arrival of foreign supplies at a port of entry, the consignee, generally
the commercial carrier or its agent (import broker), will file Customs
Form 7501, Entry Summary. This form is available from Service Ports
(http://www.customs.ustreas.gov/location/ports/index.htm) or from NASA
Headquarters\' forms library
(https://extranet.hq.nasa.gov/nef/user/form_search.cfm). All duty-free
certificates must be coordinated with the center Chief Counsel.
Procurement officers must maintain a record of each certification and
make this record available for periodic review by NASA Headquarters and
the U.S. Customs Service.

**Subpart 1828.3\--Insurance**

**1828.307** **Insurance** **under** **cost-reimbursement**
**contracts.**

**1828.307-1 Group insurance plans**.

\(a\) The procurement officer is the approval authority.

**1828.307-2**  **Liability.**

(b)(2)**(A)** The procurement officer may approve a requirement for
property damage liability insurance when:

***(a)*** A commingling of operations permits property damage coverage
at a nominal cost to NASA under insurance carried by the contractor in
the course of its commercial operations; or

***(b)*** The contractor is engaged in the handling of high explosives
or in extra hazardous research and development activities undertaken in
populated areas.

**(B)** In all other circumstances, the Assistant Administrator for
Procurement (Code HS) is the approval authority.

**1828.307-70** **Insurance** **of** **industrial** **facilities.**

When industrial facilities are provided by the Government under a
facilities contract or a lease, the contract or lease shall require that
during the period of construction, installation, alteration, repair, or
use, and at any other time as directed by the contracting officer, the
contractor or lessee shall insure or otherwise provide approved security
for liabilities to third persons (including employees of the contractor
or lessee) in the manner and to the same extent as required in FAR
28.307-2.

**1828.311 Solicitation provision and** **contract clause on liability
insurance** **under cost-reimbursement contracts.**

**1828.311-1  Contract clause.**

The contracting officer must insert the clause at FAR 52.228-7,
Insurance-Liability to Third Persons, as prescribed in FAR 28.311-1
unless \--

\(a\) Waived by the procurement officer: or

\(b\) The successful offeror represents in its offer that it is totally
immune from tort liability as a State agency or as a charitable
institution.

**1828.311-2 Agency solicitation provisions and**
**contract** **clauses.**

**1828.311-270  NASA solicitation provisions and contract clauses.**

\(a\) The contracting officer must insert the clause at 1852.228-71,
Aircraft Flight Risks, in all cost-reimbursement contracts for the
development, production, modification, maintenance, or overhaul of
aircraft, or otherwise involving the furnishing of aircraft to the
contractor, except when the aircraft are covered by a separate bailment.

\(b\) The contracting officer must insert the provision at 1852.228-80,
Insurance\--Immunity from Tort Liability, in solicitations for research
and development when a cost-reimbursement contract is contemplated.

\(c\) The contracting officer must insert FAR clause 52.228-7 and the
associated clause at 1852.228-81, Insurance \-- Partial Immunity From
Tort Liability, when the successful offeror represents in its offer that
the offeror is partially immune from tort liability as a State agency or
as a charitable institution.

\(d\) The contracting officer must insert the clause at 1852.228-82,
Insurance\--Total Immunity From Tort Liability, when the successful
offeror represents in its offer that the offeror is totally immune from
tort liability as a State agency or as a charitable institution.

**1828.370**  **Fixed-price** **contract** **clauses.**

\(a\) The contracting officer shall insert the clause at 1852.228-70,
Aircraft Ground and Flight Risk, in all negotiated fixed-price contracts
for the development, production, modification, maintenance, or overhaul
of aircraft, or otherwise involving the furnishing of aircraft to the
contractor, except as provided in paragraph (b) of this section, unless
the aircraft are covered by a separate bailment. See the clause preface
for directions for modifying the clause to accommodate various
circumstances.

\(b\) The Government need not assume the risk of aircraft damage, loss,
or destruction as provided by the clause at 1852.228-70 if the best
estimate of premium costs that would be included in the contract price
for insurance coverage for such damage, loss, or destruction at any
plant or facility is less than \$500. If it is determined not to assume
this risk, the clause at 1852.228-70 shall not be made a part of the
contract, and the cost of necessary insurance to be obtained by the
contractor to cover this risk shall be considered in establishing the
contract price. In such cases, however, if performance of the contract
is expected to involve the flight of Government-furnished aircraft, the
substance of the clause at 1852.228-71, Aircraft Flight Risks, suitably
adapted for use in a fixed-price contract, shall be used.

\(c\) When the clause at 1852.228-70 is used, the term \"Contractor\'s
premises\" shall be expressly defined in the contract Schedule and shall
be limited to places where aircraft may be located during the
performance of the contract. Contractor\'s premises may include, but are
not limited to, those owned or leased by the contractor or those for
which the contractor has a permit, license, or other right of use either
exclusively or jointly with others, including Government airfields.

**1828.371 Clauses for cross-waivers of liability for Space Shuttle
services, Expendable Launch Vehicle (ELV) launches, and Space Station
activities.**

\(a\) In agreements covering Space Shuttle services, certain ELV
launches, and Space Station activities, NASA and other signatories (the
parties) agree not to bring claims against each other for any damage to
property or for injury or death of employees that occurs during the time
such a cross-waiver is in effect. These agreements involving NASA and
other parties include, but are not limited to, Memoranda of
Understanding with foreign Governments, Launch Services Agreements, and
other agreements for the use of NASA facilities. These agreements
require the parties to flow down the cross-waiver provisions to their
related entities so that contractors, subcontractors, customers, and
other users of each party also waive their right to bring claims against
other parties and their similarly related entities for damages arising
out of activities conducted under the agreements. The purpose of the
clauses prescribed in this section is to flow down the cross-waivers to
NASA contractors and subcontractors.

\(b\) The contracting officer shall insert the clause 1852.228-72,
Cross-waiver of Liability for Space Shuttle Services, in solicitations
and contracts of \$100,000 or more when the work to be performed
involves \"Protected Space Operations\" (applicable to the Space
Shuttle) as that term is

defined in the clause. If Space Shuttle services under the contract are
being conducted in support of the Space Station program, the contracting
officer shall insert the clause prescribed by paragraph (d) of this
section and designate application of that clause to those particular
activities.

\(c\) The contracting officer shall insert the clause at 1852.228-78,
Cross-Waiver of Liability for NASA Expendable Launch Vehicle (ELV)
Launches, in solicitations and contracts of \$100,000 or more for the
acquisition of ELV launch services when the service is being acquired by
NASA pursuant to an agreement described in paragraph (a) of this
section. If, under a contract that covers multiple launches, only some
of the launches are for payloads provided pursuant to such agreements,
an additional clause shall be inserted in the contract to designate the
particular launches to which this clause applies. If a payload is being
launched by use of an ELV in support of the Space Station program, the
contracting officer shall insert the clause prescribed by paragraph (d)
of this section and designate its application to that particular launch.

\(d\) The contracting officer shall insert the clause at 1852.228-76,
Cross-Waiver of Liability for Space Station Activities, in solicitations
and contracts of \$100,000 or more when the work is to be performed
involves \"Protected Space Operations\" (relating to the Space Station)
as that term is defined in the clause.

\(e\) At the contracting officer\'s discretion, the clauses prescribed
by paragraphs (b), (c), and (d) of this section may be used in
solicitations, contracts, new work modifications, or extensions, to
existing contracts under \$100,000 involving Space Shuttle activities,
ELV launch services, or Space Station activities, respectively, in
appropriate circumstances. Examples of such circumstances are when the
value of contractor property on a Government installation used in
performance of the contract is significant, or when it is likely that
the contractor or subcontractor will have its valuable property exposed
to risk or damage caused by other participants in the Space Shuttle
services, ELV launches, or Space Station activities.

**1828.372** **Clause for minimum insurance** **coverage.**

In accordance with FAR 28.306(b) and 28.307, the contracting officer may
insert a clause substantially as stated at 1852.228-75, Minimum
Insurance Coverage, in fixed-price solicitations and contracts requiring
performance on a government installation and in cost-reimbursement
contracts. The contracting officer may modify the clause to require
additional coverage, such as vessel liability, and higher limits if
appropriate for a particular acquisition.

PART 1829

**TAXES**

**TABLE OF CONTENTS**

**SUBPART 1829.1 GENERAL**

1829.101 Resolving tax problems.

**SUBPART 1829.2 FEDERAL EXCISE TAXES**

1829.203 Other Federal tax exemptions.

1829.203-70 NASA Federal tax exemptions.

**PART 1829**

**TAXES**

**Subpart 1829.1\--General**

**1829.101 Resolving tax problems.**

(a)**(i)** The Headquarters Office of the General Counsel (Code G) is
the designated legal counsel for all external contacts on FAR Part 29
tax issues, including communications with the Department of Justice,
other Federal agencies, and any taxing authority.

**(ii)** Tax problems that cannot be solved readily by reference to FAR
Part 29 shall be forwarded to Code G through the installation\'s Office
of Chief Counsel. The following material, as applicable, shall be
forwarded to Code G with a copy to the Assistant Administrator for
Procurement (Code HS):

**(A)**  A comprehensive statement of pertinent facts, including
documents and correspondence.

**(B)**  A copy of the contract.

**(C)**  A thorough review of the legal issues involved and recommended
action.

**(D)**  If appropriate, a statement of the problem\'s effects on
procurement policies and procedures, with recommendations.

**Subpart 1829.2\--Federal Excise Taxes**

**1829.203 Other Federal tax exemptions.**

**1829.203-70 NASA Federal tax exemptions.**

\(a\) The Assistant Administrator for Procurement has obtained a permit
from the Bureau of Alcohol, Tobacco, and Firearms (Treasury Department)
enabling NASA and its contractors to purchase spirits (e.g., specially
denatured spirits) tax-free for nonbeverage Government use.
Installations can obtain copies of the permit from the Headquarters
Office of Procurement (Code HS).

\(b\) When purchasing spirits for use by NASA personnel, the contracting
officer shall attach a copy of the permit to the contract. Upon receipt
of the spirits, the permit shall be returned to the contracting officer
unless future orders are anticipated.

\(c\) When a NASA contractor requires spirits to perform a NASA
contract, the contracting officer shall furnish the contractor a copy of
the permit to provide its vendor. Upon receipt of the spirits, the
contractor shall return the permit to the contracting officer unless
future orders are anticipated. In any event, the permit shall be
returned upon completion of the contract.

\(d\) The contracting officer shall post a copy of the permit for
inspection.

**PART 1830**

# COST ACCOUNTING STANDARDS ADMINISTRATION

# TABLE OF CONTENTS

**SUBPART 1830.2 CAS PROGRAM REQUIREMENTS**

1830.201-5 Waiver.

**SUBPART 1830.70 FACILITIES CAPITAL EMPLOYED FOR FACILITIES IN USE OR
FOR FACILITIES UNDER CONSTRUCTION**

1830.7001 Facilities capital employed for facilities in use.

1830.7001-1 Contract facilities capital estimates.

1830.7001-2 DD Form 1861 completion instructions.

1830.7001-3 Preaward FCCOM applications.

1830.7001-4 Postaward FCCOM applications.

1830.7002 Facilities capital employed for facilities under construction.

1830.7002-1 Definitions.

1830.7002-2 Cost of money calculations.

1830.7002-3 Representative investment calculations.

1830.7002-4 Determining imputed cost of money.

**PART 1830**

## COST ACCOUNTING STANDARDS ADMINISTRATION

**Subpart 1830.2\--CAS Program Requirements**

**1830.201-5  Waiver.**

(a)(2) The Assistant Administrator for Procurement is the only
individual authorized to approve CAS waivers. Requests for waivers that
meet the conditions in FAR 30.201-5(b) must be submitted to the
Headquarters Office of Procurement (Code HK) at least 30 days before the
anticipated contract award date.

\(e\) The Assistant Administrator for Procurement will submit NASA\'s
report to the CAS Board.

**Subpart 1830.70\--Facilities Capital Employed for**

**Facilities in Use and for Facilities Under Construction**

**1830.7001 Facilities capital employed for facilities in use.**

**1830.7001-1 Contract facilities capital estimates.**

To estimate facilities capital cost of money (FCCOM), the contracting
officer shall use DD Form 1861, Contract Facilities Capital Cost of
Money, after evaluating the contractor's cost proposal, establishing
cost of money factors, and developing a prenegotiation cost objective.

**1830.7001-2 DD Form 1861 completion instructions.**

\(a\) List overhead pools and direct-charging services centers (if used)
in the same structure as they appear on the contractor's cost proposal
and Form CASB-CMF. The structure and allocation base units-of-measure
must be compatible on all three displays.

\(b\) Extract appropriate contract overhead allocation base data, by
year, from the evaluated cost breakdown or prenegotiation cost
objective, and list them against each overhead pool and direct-charging
service center.

\(c\) Multiply each allocation base by its corresponding cost of money
factor to compute the FCCOM estimated to be incurred each year. The sum
of these products represents the estimated contract FCCOM for that
year's effort.

\(d\) Add the yearly estimates to calculate the total contract FCCOM.

**1830.7001-3 Preaward FCCOM applications.**

Apply FCCOM in establishing cost and price objectives as follows:

\(a\) **Cost objective.** Use the FCCOM with normal, booked costs in
establishing a cost objective or the target cost of an incentive type
contract. Do not subsequently adjust these target costs when actual cost
of money rates become available during the contract performance period.

\(b\) **Profit/fee objective.** Do not include FCCOM in the cost base
when establishing a prenegotiation profit/fee objective. Use only
normal, booked costs in this cost base.

**1830.7001-4 Postaward FCCOM applications.**

\(a\) **Interim billings based on costs incurred.**

\(1\) The contractor may include FCCOM in cost reimbursement and
progress payment invoices. To determine the amount that qualifies as
cost incurred, multiply the incurred portions of the overhead pool
allocation bases by the latest available cost of money factors. These
FCCOM calculations are interim estimates subject to adjustment.

\(2\) As actual cost of money factors are finalized, use the new factors
to calculate FCCOM for the next accounting period.

\(b\) **Final settlements.**

\(1\) Contract FCCOM for final cost determination or repricing is based
on each year's final cost of money factors determined under CAS 414 and
supported by separate Forms CASB-CMF.

\(2\) Separately compute contract FCCOM in a manner similar to yearly
final overhead rates. As in overhead rates, include in the final
settlement an adjustment from interim to final contract FCCOM. Do not
adjust the contract estimated or target cost.

**1830.7002 Facilities capital employed for facilities under
construction.**

**1830.7002-1 Definitions.**

\(a\) **"Cost of money rate"** is either \--

\(1\) The interest rate determined by the Secretary of the Treasury
under Public Law 92-41 (85 Stat 97); or

\(2\) The time-weighted average of such rates for each cost accounting
period during which the capital asset is being constructed, fabricated,
or developed.

\(b\) **"Representative investment"** is the calculated amount
considered invested by the contractor during the cost accounting period
to construct, fabricate, or develop the capital asset.

**PART 1832**

# CONTRACT FINANCING

**TABLE OF CONTENTS**

1832.006-2 Definition.

1832.007 Contract financing payments.

**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**

1832.908 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.

**1832.007 Contract financing payments.**

(a)(1) Except as authorized in 1832.908, it is NASA's policy to make
contract financing payments on the 30^th^ 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.

**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.**

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**

**1832.908 Contract clauses.**

(c)(2) When the clause at FAR 52.232-25, Prompt Payment, is used in such
contracts with the Canadian Commercial Corporation (CCC), insert
\"17^th^\" in lieu of \"30^th^\" 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.

**PART 1833**

# PROTESTS, DISPUTES, AND APPEALS

**TABLE OF CONTENTS**

**SUBPART 1833.1 PROTESTS**

1833.103 Protests to the agency.

1833.104 Protests to GAO.

1833.106 Solicitation provision and contract clause.

1833.106-70 Solicitation provision.

**SUBPART 1833.2 DISPUTES AND APPEALS**

1833.209 Suspected fraudulent claims.

1833.210 Contracting officer's authority.

1833.211 Contracting officer's decision.

1833.215 Contract clause.

**PART 1833**

# PROTESTS, DISPUTES, AND APPEALS

**Subpart 1833.1\--Protests**

**1833.103 Protests to the agency.**

\(c\) An independent review under the provision at 1852.233-70 is
available as an alternative to a protest to the contracting officer, but
not as an appeal of a protest decision. All independent reviews shall be
conducted by the Deputy Assistant Administrator for Procurement or
designee. Such reviews are different from the Ombudsman Program
described at 1815.7001.

\(d\) NASA shall summarily dismiss and take no further action upon any
protest to the Agency if the substance of the protest is pending in
judicial proceedings or the protester has filed a protest on the same
acquisition with the United States General Accounting Office prior to
receipt of an Agency protest decision.

\(4\) When a potential bidder or offeror submits an Agency protest to
NASA to the contracting officer or alternatively requests an independent
review, the decision of the contracting officer or the independent
review official shall be final and is not subject to any appeal or
reconsideration within NASA.

\(f\) Protests received at NASA offices or locations other than that of
the cognizant contracting officer shall be immediately referred to the
contracting officer for disposition (see 1833.106(a)). The contracting
officer shall advise the Headquarters Office of the General Counsel
(Code GK) of the receipt of the protest and the planned and actual
disposition. This paragraph does not apply when the protester has
requested an independent review under the provision at 1852.233-70.

**1833.104**  **Protests** **to** **GAO.**

The Assistant Administrator for Procurement is the sole authority for
deciding whether to defend a protest to GAO or to direct remedial
action. NASA per­son­nel shall take no action to respond to or resolve any
protest filed with GAO other than in accordance with this part and other
guidance provided by NASA Headquarters.

(a)(2) The Headquarters Office of Pro­curement (Code HS) shall notify the
con­tracting officer of protest receipt, and the contracting officer
shall immediately give notice of the protest to all interested parties.
Oral contracting officer notices shall be subsequently confirmed in
writing, and the contracting officer shall also send a copy of the
written confir­mation to Code HS, the Head­quar­ters Office of the General
Coun­sel (Code GK), and the instal­lation Chief Counsel.

(3)(i) The contracting officer shall send four copies of the protest
report, consisting of the protest file, the contracting officer's
state­ment of facts, and a draft memoran­dum of law to Code GK within 20
days after GAO notifi­cation of protest receipt. Also include a copy of
the file index in electronic format. The contracting officer shall
retain a minimum of two copies of the protest file.

\(ii\) When an actual or prospective offeror requests access to a
protest file, the contracting officer shall take the following actions,
except **(*a*)** and **(*b*)** are not required if already accomplished:

**(*a*)** Send a copy of the protest file index to Code GK within 10
days of receipt of the request.

**(*b*)** Send a copy of the protest file to Code GK within 15 days of
receipt of the request.

**(*c*)** With Code GK concurrence, send the protest file and index to
the requesting party to ensure delivery within 20 days after receipt of
the request.

\(iv\) Code GK shall submit the protest file to GAO.

(4)(i) Code GK shall provide copies of the report to the protestor(s),
any intervenors, and the installation Chief Counsel.

(b)(1) The Assistant Administrator for Procurement (Code HS) is the
approval authority for contract award.

(c)(1) The contracting officer shall consult Code HS before terminating
a protested contract.

\(2\) The Assistant Administrator for Procurement (Code HS) is the
approval authority for authorizing contract performance.

\(f\) The Agency may request GAO reconsi­deration of its decision within
10 days of issuance. If reconsideration is appropriate, the installation
Chief Counsel shall forward a draft request for reconsideration, with
any additional supporting documentation, to Code GK within 6 days of
issuance of the GAO decision.

**1833.106 Solicitation provision and contract clause.**

\(a\) The contracting officer shall be the designated recipient of
Agency protests in paragraph (a) of the provision at FAR 52.233-2.

**1833.106-70 Solicitation provision.**

Contracting officers shall insert the provision at 1852.233-70 in all
solicitations.

**Subpart 1833.2\--Disputes and Appeals**

**1833.209** **Suspected** **fraudulent** **claims.**

PART 1835

**RESEARCH AND DEVELOPMENT CONTRACTING**

**TABLE OF CONTENTS**

1835.003 Policy.

1835.015 Contracts for research with educational institutions and
nonprofit

organizations.

1835.016 Broad agency announcements.

1835.016-70 Foreign participation under broad agency announcements
(BAAs).

1835.016-71 NASA Research Announcements.

1835.016-72 Foreign participation in NRA proposals.

1835.070 NASA contract clauses and solicitation provision.

**PART 1835**

**RESEARCH AND DEVELOPMENT CONTRACTING**

**1835.003 Policy.**

See NPG 5800.1**,** Grant and Cooperative Agreement Handbook, for policy
regarding the use of grants and cooperative agreements.

**1835.015** **Contracts** **for** **research** **with** **educational**
**institutions** **and** **nonprofit** **organizations.**

(a)(1)(iv) The research contract shall include a requirement that the
contractor obtain the contracting officer\'s approval when it plans to
continue the research work during a continuous period in excess of 3
months without the participation of an approved principal investigator
or project leader.

**1835.016 Broad agency announcements.**

(a)**(i)** The following forms of broad agen­cy announcements (BAAs) are
authorized for use:

**(A)** Announcements of Opportunity (see 1872).

**(B)** NASA Research Announcements (see 1835.016-71).

**(C)**  Other forms of announcements ap­proved by the Assistant
Administrator for Procurement (Code HS).

**(ii)** Other program announcements, notic­es, and letters not
authorized by para­graph (a)(i) of this section shall not be used to
solicit propos­als that may result in contracts.

**(iii)** Draft or final versions of any form of BAA that directly or
substantially supports a program subject to NASA Procedures and
Guidelines (NPG) 7120.5 shall not be released unless \--

**(A)** All applicable NPG 7120.5 required documentation (see
1804.7301(b)(2)(i)) is current and has been approved (e.g., Formulation
Authorization Document, Program Commitment Agreement, Program Plan, or
Project Plan); or

**(B)** Authority to proceed without the required documentation has been
granted by the Chair of the Governing Program Management Council or
designee.

\(c\) BAAs may not preclude the participation of any offer­or capable of
satisfying the Government\'s needs unless a justification for other than
full and open competition is approved under FAR 6.304.

**1835.016-70 Foreign participation under broad agency announcements
(BAAs).**

\(a\) *Policy*.

> \(1\) NASA seeks the broadest participation in response to broad
> agency announcements, including foreign proposals or proposals
> including foreign participation. NASA's policy is to conduct research
> with foreign entities on a cooperative, no-exchange-of-funds basis
> (see NPD 1360.2, Initiation and Development of International
> Cooperation in Space and Aeronautics Programs). NASA does not normally
> fund foreign research proposals or foreign research efforts that are
> part of U.S. research proposals. Rather, cooperative research efforts
> are implemented via international agreements between NASA and the
> spon­soring foreign agency or funding/sponsoring institution under
> which the parties agree to each bear the cost of discharging their
> respective responsibilities.

\(2\) 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.

\(3\) NASA funding may not be used for subcontracted foreign research
efforts. 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.

\(b\) *Procedure*. When a foreign proposal or a U.S. proposal with
foreign participation is received in response to a BAA, the NASA
sponsoring office shall determine whether the proposal conforms to the
no-exchange-of-funds policy in 1835.016-70(a).

\(1\) If the proposal conforms to the policy in 1835.016-70(a), the NASA
sponsoring office shall evaluate the proposal and make selection in
accordance with 1835.016-71(d). In conjunction with the notification of
successful foreign proposers, the NASA sponsoring office shall notify
the Headquarters Office of External Relations, Code I. Code I will
negotiate the agreement with the sponsoring foreign agency or funding
institution for the proposed participation.

\(2\) If the proposal does not conform to the policy in 1835.016-70(a),
the NASA sponsoring office shall:

\(i\) Determine whether the proposal merits further consideration;

\(ii\) If further consideration is warranted, refer the proposal to Code
I; and

\(iii\) Complete the evaluation of the proposal. However no notification
of selection, whether tentative or final, shall be made without Code I
approval.

\(3\) Notification to Code I required by paragraphs (b)(1) and
(b)(2)(ii) of this section, shall address the items contained in
1872.504(c), and shall be coordinated through the Office of Procurement,
Code HS.

**1835.016-71 NASA Research Announcements.**

\(a\) *Scope.* An NRA is used to announce research interests in support
of NASA's programs, and, after peer or scientific review using factors
in the NRA, select proposals for funding. Unlike an RFP containing a
statement of work or specification to which offerors are to respond, an
NRA provides for the sub­mission of competitive project ideas, con­ceived
by the offerors, in one or more program areas of interest. An NRA shall
not be used when the requirement is sufficiently defined to specify an
end product or service.

\(b\) *Issuance.*

\(1\) Before issuance, each field-generat­ed NRA shall be approved by the
installa­tion director or designee, with the concurrence of the
procure­­ment officer, and each Headquarters-generated NRA shall be
approved by the cognizant Program Associate Administrator or designee,
with the concurrence of the Headquarters Offices of General Counsel
(Code GK) and Procurement (Code HS). In addition, the issuing office
shall obtain input from the cognizant offices responsible for matters of
safety and mission assurance, occupational health, environmental
protection, information technology, export control, and security. Input
shall also be obtained from the appropriate systems safety organization
for NRA\'s that may involve potentially hazardous operations such as
those related to flight and/or mission critical ground systems. The NRA
approval authority shall designate the selection official.

\(2\) The selection official shall assure that the NRA is synopsized
prior to issuance in accordance with FAR 5.201. The synopsis shall be
brief, and the technical section describing the area of interest should
not exceed 50 words.

\(3\) If a Headquarters-generated NRA may result in awards by a NASA
field installation, the issuing office shall notify the installation
procurement officer and provide a copy of the NRA.

\(4\) The selecting official is responsible for the preparation and
distribution of the NRA.

\(5\) NRAs normally shall remain open for at least 90 days.

\(c\) *Content.* The NRA shall consist of the following sections and
items. The entire package shall be provided in response to requests.

\(1\) *Cover.*  The cover shall display:

\(i\) \"OMB Approval Number 2700-0087\" in the upper right corner.

\(ii\) Title.

\(iii\) \"NASA Research Announcement Soliciting Research Proposals for
the Peri­od Ending \_ \".

\(iv\) NRA number.

\(v\) Official address for the office issuing the NRA.

\(2\) *Summary and Supplemental Infor­mation.*

\(i\) The Summary and Supplemental Information should not exceed two
pages and shall include:

\(A\) Title and NRA number.

\(B\) The following statement concerning safety:

\" Safety is the freedom from those conditions that can cause death,
injury, occupational illness, damage to or loss of equipment or
property, or damage to the environment. NASA\'s safety priority is to
protect: (1) the public, (2) astronauts and pilots, (3) the NASA
workforce (including employees working under NASA award instruments),
and (4) high-value equipment and property.

\(C\) Introductory paragraphs describ­ing the purpose of the NRA and the
period for receipt of proposals.

\(D\) Address for submitting proposals.

\(E\) Number of copies required.

\(F\) Selecting official\'s title.

\(G\) Names, addresses, and tele­phone num­bers for the technical and
contracting points of contact.

\(H\) The following statement when the NRA is to be issued before funds
are available:

\"Funds are not currently available for awards under this NRA. The
Government\'s obligation to make award(s) is contingent upon the
avail­ability of appropriated funds from which payment can be made and
the receipt of pro­posals that NASA de­ter­mines are accept­able for award
un­der this NRA.\"

\(ii\) The Summary and Supplemental Information may include estimates of
the amount of funds that will be avail­able and the number of anticipated
awards. A breakdown of the estimates by research area may also be shown.

\(3\) *Technical Description.* The first page shall contain the NRA
number and title at the top. A brief description not exceeding two pages
is preferable, but it should be detailed enough to enable ready
comprehen­sion of the research areas of interest. Speci­fications
containing detailed state­ments of work should be avoid­ed. Any program
manage­ment information included must be limited to matters that are
essential for proposal preparation.

\(4\) *Instructions for Responding to NASA Research Announcements.* The
NRA shall contain instructions as stated in 1852.235-72 (see
1835.070(c)).

\(d\) *Receipt of proposals, evaluation, and selection.*

\(1\) Proposals shall be protected as pro­vided in FAR 15.608, FAR
15.609, and 1815.609-70.

> \(2\) Late propos­als and modifications shall be treated in accordance
> with 1815.208.

\(3\) The selection decision shall be made following peer or scientific
review of a proposal. Peer or scientific review shall involve evaluation
by an in-house special­ist, a specialist outside NASA, or both.
Evaluation by specialists outside NASA shall be conducted subject to the
conditions in 1815.207. After receipt of a proposal and before
selection, scientific or engineering personnel shall communicate with an
offeror only for the purpose of clarifica­tion (as defined in FAR
15.306), or to understand the meaning of some aspect of the proposal
that is not clear, or to obtain confirmation or substantiation of a
proposed approach, solution, or cost esti­mate.

\(4\) Competitive range determinations shall not be made, and final
proposal revisions shall not be requested.

\(5\) Part of a proposal may be selected unless the offeror requests
other­wise. In addition, changes to a selected proposal may be sought if
(i) the ideas or other aspects of the proposal on which selection is
based are contained in the proposal as originally submitted, and are not
intro­duced by the changes; and (ii) the changes sought would not involve
a material alter­ation to the requirements stated in the NRA. Changes
that would affect a proposal\'s selection shall not be sought. When
changes are desired, the selecting official may request revi­sions from
the offeror or request the contracting officer to implement them during
negotiations with the successful offeror(s). The changes shall not
transfer information from one offeror\'s proposal to another offeror
(see FAR 15.306(e). When collaboration between offerors would improve
proposed research programs, collaboration may be suggested to the
offerors.

\(6\) The basis for selection of a proposal shall be documented in a
selection state­ment applying the evaluation factors in the NRA. The
selection statement represents the conclusions of the selecting official
and must be self-contained. It shall not incorpo­rate by reference the
evaluations of the reviewers.

PART 1837

**SERVICE CONTRACTING**

# TABLE OF CONTENTS

**SUBPART 1837.1 SERVICE CONTRACTS \-- GENERAL**

1837.101 Definitions.

1837.104 Personal services contracts.

1837.110 Solicitation provisions and contract clauses.

1837.110-70 NASA solicitation provision and contract clauses.

1837.170 Pension portability.

**SUBPART 1837.2 ADVISORY AND ASSISTANCE SERVICES**

1837.203 Policy.

1837.204 Guidelines for determining availability of personnel.

**PART 1837**

**SERVICE CONTRACTING**

**Subpart 1837.1\--Service Contracts\--General**

**1837.101 Definitions.**

**"Pension portability\"** means the recognition and continuation in a
successor service contract of the predecessor service contract
employees\' pension rights and benefits.

**1837.104 Personal services contracts.**

\(b\) Section 203(c)(9) of the National Aeronautics and Space Act of
1958 (42 U.S.C. 2473(c)(9)) authorizes NASA \"to obtain services as
authorized by Section 3109 of Title 5, United States Code.\" It is NASA
policy to obtain the personal services of experts and consultants by
appointment rather than by contract. The policies, responsibilities, and
procedures pertaining to the appointment of experts and consultants are
in NPG 3300.1, Appointment of Personnel To/From NASA, Chapter 4,
Employment of Experts and Consultants.

**1837.110 Solicitation provisions and contract clauses.**

**1837.110-70 NASA solicitation provision and contract clauses.**

\(a\) The contracting officer shall insert the clause at 1852.237-70,
Emergency Evacuation Procedures, in solicitations and contracts for
on-site support services where emergency evacuations of the NASA
installation may occur, e.g., snow, hurricanes, tornadoes, earthquakes,
or other emergencies.

\(b\) The contracting officer shall insert the clause at 1852.237-71,
Pension Portability, in solicitations, contracts or negotiated contract
modifications for additional work when the procurement officer makes the
determination in 1837.170(a)(2).

\(c\) The contracting officer shall insert the provision 1852.237-72,
Identification of Uncompensated Overtime, in cost reimbursement
contracts expected to exceed \$1, 000,000.

**1837.170 Pension portability.**

\(a\) It is NASA\'s policy not to require pension portability in service
contracts. However, pension portability requirements may be included in
solicitations, contracts, or contract modifications for additional work
under the following conditions:

(1)(i) There is a continuing need for the same or similar services for a
minimum of five years (inclusive of options), and, if the contractor
changes, a high percentage of the predecessor contractor\'s employees
are expected to remain with the program; or

\(ii\) The employees under a predecessor contract were covered by a
portable pension plan, a follow-on contract or a contract consolidating
existing services is awarded, and the total contract period covered by
the plan covers a minimum of five years (including both the predecessor
and successor contracts); and

\(2\) The procurement officer determines in writing, with full
supporting rationale, that such a requirement is in the Government\'s
best interest. The procurement officer shall maintain a record of all
such determinations.

\(b\) When pension portability is required, the plan shall comply with
the requirements of the clause at 1852.237-71, Pension Portability, (see
1837.110-70(b)), and the contract shall also include a clear description
of the plan, including service, pay, liabilities, vesting, termination,
and benefits from prior contracts.

**Subpart 1837.2\--Advisory and Assistance Services**

**1837.203**  **Policy.**

\(c\) Advisory and assistance services of individual experts and
consultants shall normally be obtained by appointment rather than by
contract (see NPG 3300.1, Appointment of Personnel To/From NASA, Chapter
4, Employment of Experts and Consultants).

**1837.204 Guidelines for determining availability of personnel.**

(a)**(i)** Outside peer review evaluators may be used to evaluate SBIR,
STTR, NRA, AO, and unsolicited proposals without making the
determination of non-availability.

**(ii)** For all other actions, the NASA official one level above the
NASA program official responsible for the evaluation shall make the
determination, with the concurrence of the legal office. The contracting
officer shall ensure that a copy of the determination is in the contract
file prior to issuance of a solicitation.

\(b\) The official designated in paragraph (a)(ii) of this section is
responsible for the actions required in FAR 37.204(b).

\(c\) The agreement shall be made by the program official responsible
for the evaluation and the contracting officer.

\(e\) The Assistant Administrator for Procurement (Code HS) is the
approval authority for class determinations. The class determination
request shall include the assessment required by FAR 37.204(b).

major program cutbacks or expansions, changes in locations of major
programs, and sizable new acquisitions should be considered in the
assessment.

\(b\) A summary, including a negative summary, of the Center's
assessment shall be submitted by the procurement officer to the
Headquarters Office of Procurement (Code HK) by not later than January
15 and June 15 of the fiscal year. The summary shall include\--

\(1\) A description of the change in work requirements or delegation
pattern;

\(2\) The estimated duration of the impact;

\(3\) The results of discussions with affected DOD contract
administration offices including agreement and disagreements on the
predicted impact on DOD in terms of changes in manpower requirements or
other costs; and

\(4\) Any other significant impact on DOD or NASA resources or contract
performance risk.

**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.

profit is contemplated) for repair, modification, rehabilitation, or
other servicing of Government property, if such property is to be
furnished to a contractor for that purpose and no other Government
property is to be furnished. The contracting officer shall not require
additional insurance under the clause unless the circumstances clearly
indicate advantages to the Government.

\(d\) The contracting officer shall insert the clause at 1852.245-73,
Financial Reporting of NASA Property in the Custody of Contractors, in
cost reimbursement contracts unless all property to be provided is
subject to the clause at 1852.245-71, Installation-Accountable
Government Property. The clause shall also be included in other types of
contracts when it is known at award that property will be provided to
the contractor or that the contractor will acquire property title to
which will vest in the Government prior to delivery.

\(e\) When approved by the Logistics Management Office of the
Headquarters Office of Management Systems and Facilities (Code JLG), the
contracting officer shall insert the clause at 1852.245-74, Contractor
Accountable On-Site Government Property, in lieu of the clause at
1852.245-71, in solicitations and contracts when accountability rests
with an on-site contractor. The contracting officer's written request
for approval shall include a determination of costs that will be (1)
avoided (e.g., additional costs to the installation\'s property
management systems and staffing) and (2) incurred (e.g., reimbursable
costs of the contractor to implement, staff, and operate separate
property management systems on-site, and resources needed for
performance of, or reimbursement for, property administration) under
contractor accountability.

\(f\) The contracting officer shall insert the clause at 1852.245-75,
Title to Equipment, in solicitations and contracts where the clause at
[FAR
52.245-2](http://www.arnet.gov/far/current/html/52_245.html#1046483)
with its Alternate II or 52.245-5 with its Alternate I is used.

\(g\) The contracting officer shall insert the clause at 1852.245-76,
List of Government-Furnished Property, in solicitations and contracts if
the contractor is to be accountable under the contract for Government
property.

\(h\) The contracting officer shall insert the clause at 1852.245-77,
List of Installation-Accountable Property and Services, in solicitations
and contracts that require performance at the center and authorize
contractor use of property within the physical borders of the center.

\(i\) The contracting officer shall insert the provision at 1852.245-79,
Use of Government-Owned Property, in all solicitations when Government
property may be used by the contractor.

\(j\) The contracting officer shall insert the clause at 1852.245-80,
Use of Government Production and Research Property on a No-Charge Basis,
in solicitations and contracts when Government property (real property,
commercially available equipment, special test equipment, or special
tooling) accountable under another contract(s) is authorized for use.

**1845.106-71 Plant reconversion and plant clearance.**

The Assistant Administrator for Procurement (Code HS) is the approval
authority for any solicitation provision or contract clause that would
defer negotiation of costs for plant reconversion or plant clearance
until after award.

**Subpart 1845.3\--Providing Government Property to Contractors**

**1845.301  Definitions.**

**\"Facilities",** as defined in the FAR, also include real property and
commercially available equipment, whether owned or leased by NASA or
reimbursed as a cost under the contract.

**\"Provide\",** as used in this subpart in such phrases as \"Government
property provided to the contractor\" and \"Government-provided
property,\" means either to furnish, as in \"Government-furnished
property,\" or to permit to be acquired, as in \"contractor-acquired
property.\" See FAR 45.101 for definitions of \"contractor-acquired
property\" and \"Government-furnished property.\"

**1845.302  Providing facilities.**

**1845.302-1  Policy.**

\(a\) In addition to the exceptions listed in FAR 45.302-1(a), existing
NASA-owned facilities (whether contractor acquired or Government
furnished) being used by a contractor may be retained for the remainder
of the contract period and furnished under any follow-on contract for
the same effort if the contracting officer determines that to do so
would be in the best interest of the Government, provided that:

**(i)** The facilities are required to accomplish the purpose of the
contract;

**(ii)** The contract contains a provision requiring the contractor to
replace any of the facilities that reach the end of their useful life
during the contract period, or which are beyond economical repair, if
the facilities are still needed for contract performance. Such
replacements shall be made with contractor-owned facilities. The
contract provision shall also expressly prohibit contractor acquisitions
of facility items for the Government, unless specifically authorized by
the contract or consent has been obtained in writing from the
contracting officer pursuant to FAR 45.302-1(a);

**(iii)** Consideration has been given to any alternative uses by
Government personnel within the agency, in consultation with the center
industrial property officer; and

**(iv)** The contracting officer documents the file with a detailed
explanation of why continued furnishing of the facilities is in the best
interest of the Government.

(a)(4)**(A)** The procurement officer is designated to make the
determinations and findings (D&F) authorizing the use of Government
facilities. See 1845.302-71 for D&F format.

**(B)** The requirements for a D&F and a prospective contractor's
written statement asserting inability to obtain facilities are not
applicable in the circumstances listed under FAR 45.302-1(d). In these
cases, the contracting officer shall document the contract file with the
rationale for providing the facilities, including the reason for not
requiring the contractor to provide them.

**1845.302-2  Facilities contracts.**

Unless termination would be detrimental to the Government\'s interests,
contracting officers shall terminate facilities contracts when the
Government property is no longer required for the performance of
Government contracts or subcontracts. Contracting officers shall not
grant the contractor the unilateral right to extend the time during
which it is entitled to use the property provided under the facilities
contract.

**1845.302-70 Securing approval of facilities projects.**

\(a\) Pursuant to NMI 7330.1, Delegation of Authority - Approval
Authorities for Facility Projects, the contracting officer must approve
facilities projects involving leasing, construction, expansion,
modification, rehabilitation, repair, or replacement of real property.

\(b\) The contracting officer\'s written authorization is required
before any change is made in the scope or estimated cost of any
facilities project.

**1845.302-71 Determination and findings.**

\(a\) **Procedure.** Determination and findings (D&F) required under FAR
45.302-1(a)(4) and 1845.302-1(a)(4) shall be prepared by the contracting
officer and approved by the procurement officer. Prior to approval,
concurrence must be obtained from the SEMO to ensure agreement on the
use of the Government facilities by the contractor. D&Fs shall address
individual types of facilities to be provided to the contractor.
Reference to specific variations in quantities of items to be provided
should be included in the D&F if additional requirements are
anticipated. A separate D&F is required before adding new types of items
or significant changes in quantity or before adding any new work to the
contract that requires additional Government facilities.

\(b\) **Format.** A sample format follows:

**(Format)**

National Aeronautics and Space

Administration

Washington, DC 20546

Determination and Findings

Decision to Provide Government Facilities

On the basis of the following findings and determinations,
Government-owned facilities may be provided to    \[insert the name of
the contractor\]    pursuant to the authority of FAR 45.302-1(a)(4).

Findings

1\. The    \[insert the name of the contracting activity\]    and the
contractor (have entered)/(proposed to enter) into Contract No.
   \[insert the contract number\]   . (Include the following
information: Type of contract, contract value, and a brief description
of the scope of work performed under the contract.)

2\. (Justify that Government facilities are needed for performance under
the contract. The justification shall demonstrate either (i) that the
contract cannot be fulfilled by any other means, or (ii) that it is in
the public interest to provide the facilities. It is imperative that the
justification be fully substantiated by evidence.)

3\. (If the contract effort cannot be fulfilled by any other means,
indicate why the contractor cannot provide the facilities. For example,
due to financial constraints, the contractor has demonstrated inability
to acquire the facilities; or, even though the contractor is willing and
financially able to acquire these facilities for its own account, the
contractor has stated that time will not permit making arrangements to
obtain timely delivery to meet NASA requirements. If timely delivery is
the problem, state when the contractor will replace the Government
facilities with contractor-owned facilities. Address leadtime, validate
the contractor\'s claims, and state that private financing was sought
and either not available or not advantageous to the Government. If
private financing was not advantageous to the Government, provide
justification. Indicate other alternatives considered and reasons for
rejection.)

4\. (Describe the types of facilities to be provided and any variation
in quantities of items based on functional requirements. Explain how
these facilities pertain to the scope of work to be completed. State
that the contract cannot be accomplished without the specified facility
items being provided. Include an estimate of the value of the facilities
and a statement that no facilities items under \$10,000 unit cost will
be provided unless the contractor is a nonprofit, on-site, or the
facilities are only available from the Government.)

5\. (Indicate whether the property will be accountable under this
contract or a separate facilities contract.)

Determination

For the reasons set forth above, it is hereby determined that the
Government-owned facilities identified herein will be provided to the
contractor.

                                   

## Procurement Officer Date

**(End of format)**

**Subpart 1845.4\--Contractor Use and Rental of Government Property**

**1845.402 Authorizing use of Government production and research
property.**

(a)**(i)** A NASA contracting officer desiring to authorize use of
Government property under the cognizance of another contracting officer
shall obtain that contracting officer\'s concurrence.

**(ii)** NASA contracting officers having cognizance over NASA property
may authorize its use on contracts of other agencies if such use will
not interfere with NASA\'s primary purpose for the property and will not
extend beyond the expected expiration or completion date of the NASA
contract.

**1845.403 Rental\--Use and Charges clause.**

\(a\) The Center Director is designated as the authority to make the
determinations on modified rental rates.

**1845.405 Contracts with foreign governments or international
organizations.**

**1845.405-70 NASA procedures.**

\(a\) NASA policy is to recover a fair share of the cost of Government
production and research property if such property is used in performing
services or manufacturing articles for foreign countries or for
international organizations.

\(b\) The prior written approval of the Assistant Administrator for
Procurement (Code H) is required for the use of Government production
and research property on work for foreign countries or for international
organizations. The Logistics Management Office of the Headquarters
Office of Management Systems (Code JG), the Office of General Counsel
(Code G), and the Headquarters Office of External Relations (Code I) are
required concurrences.

\(c\) Contracting officers shall forward requests for approval to Code
HS, along with a summary of the circumstances involved, including as a
minimum \--

\(1\) The name of the requesting contractor;

\(2\) The number of the contract under which the equipment is
controlled;

\(3\) A description of the equipment;

\(4\) The name of the foreign contractor and the relationship of the
foreign contractor to its government or to any international
organization;

\(5\) A description of the articles to be manufactured or services to be
performed;

\(6\) A statement that the intended use will not interfere with the
current or foreseeable requirements of the United States or require use
of the equipment beyond the expected expiration or completion date of
the NASA contract;

\(7\) A statement that the use of Government property is consistent with
the best interests of the United States;

\(8\) A statement that such use is legally authorized; and

\(9\) Any evidence of endorsement by another agency of the U.S.
Government based on national security or foreign policy of the United
States (e.g., an approved license or agreement from the Department of
State or Department of Commerce).

\(d\) Use, if approved, shall be subject to rent in accordance with FAR
45.403.

**1845.406 Use of Government production and research property on
independent research and development programs.**

**1845.406-70 NASA policy.**

The contracting officer should not authorize contractor use of
Government property for independent research and development on a
rent-free basis except in unusual circumstances when it has been
determined by the contracting officer that \--

\(a\) Such use is clearly in the best interests of the Government (for
example, the project can reasonably be expected to be of value in
specific Government programs); and

\(b\) No competitive advantage will accrue to the contractor through
such use (see FAR 45.201).

**1845.407 Non-Government use of plant equipment.**

For NASA, the coverage in FAR 45.407, applies to all equipment, not just
plant equipment.

(a)**(i)** The Assistant Administrator for Procurement (Code HS) is the
approval authority for non-Government use of equipment exceeding 25
percent.

**(ii)** The percentage of Government and non-Government use shall be
computed on the basis of time available for use. For this purpose, the
contractor\'s normal work schedule, as represented by scheduled
production shift hours, shall be used. All equipment having a unit
acquisition cost of less than \$25,000 at any single location may be
averaged over a quarterly period. Equipment having a unit acquisition
cost of \$25,000 or more shall be considered on an item-by-item basis.

**(iii)** Approval for non-Government use of less than 25 percent shall
be for a period not exceeding 1 year. Approval for non-Government use in
excess of 25 percent shall not be for less than 3 months.

**(iv)** Requests for the approval shall be submitted to Code HS at
least 6 weeks in advance of the projected use and shall include\--

**(A)** The number of equipment items involved and their total
acquisition cost; and

**(B)** An itemized listing of equipment having an acquisition cost of
\$25,000 or more, showing for each item the nomenclature, year of
manufacture, and acquisition cost.

**Subpart 1845.5\--Management of Government Property in the Possession
of Contractors**

**1845.502 Contractor responsibility.**

**1845.502-1 Receipts for Government property.**

Receipts for Government property shall comply with the instructions for
preparing NASA Form 1018, NASA Property in the Custody of Contractors
(see 1845.7101).

**1845.502-70 Contractor-acquired property.**

All contractor-acquired property must be authorized by the contract and
is subject to a determination by the contracting officer that it is
allocable to the contract and reasonably necessary. The acquisition (and
fabrication) of Government property is further subject to the following
conditions, depending on category of property:

\(a\) Facilities.

\(1\) Prior contracting officer approval, if the facilities are not
already specifically described in the contract as contractor-acquired.

\(2\) Submission of DD Form 1419, DOD Industrial Plant Requisition, or
equivalent format, and return of Certificate of Nonavailability.

\(3\) Submission of the written statement prescribed by FAR
45.302-1(a)(4).

\(b\) Special test equipment.

\(1\) Contracting officer approval 30 days in advance if the equipment
is not identified in the solicitation or contract.

\(2\) Submission of DD Form 1419, or equivalent format, and return of
Certificate of Nonavailability.

\(c\) Special tooling.

\(1\) If the contract contains a Subcontracts clause, advance
notification to the contracting officer and contracting officer consent
if required by that clause.

\(2\) If the contract is a fixed-price contract, submission of the list
to the contracting officer within 60 days after delivery of the first
production end items (or later as prescribed by the contracting
officer), unless the tooling is already identified in the solicitation.

\(3\) Submission of DD Form 1419 or equivalent format and return of
Certificate of Nonavailability.

\(d\) Material. If the contract contains a Subcontracts clause, advance
notification to the contracting officer and contracting officer consent
if required by that clause.

\(e\) Agency-peculiar property.

\(1\) If the contract contains a Subcontracts clause, advance
notification to the contracting officer and contracting officer consent
if required by that clause.

\(2\) Submission of DD Form 1419, or equivalent format, and return of
Certificate of Nonavailability.

**1845.505 Records and reports of Government property.**

PART 1848

VALUE ENGINEERING

**TABLE OF CONTENTS**

**SUBPART 1848.1 POLICIES AND PROCEDURES**

1848.102 Policies.

1848.103 Processing value engineering change proposals.

1848.104 Sharing arrangements.

1848-104-3 Sharing collateral savings.

**SUBPART 1848.2 CONTRACT CLAUSES**

1848.201 Clauses for supply or service contracts.

PART 1848

VALUE ENGINEERING

**Subpart 1848.1\--Policies and Procedures**

**1848.102** **Policies.**

\(a\) The Assistant Administrator for Procurement (Code HS) is the
approval authority for exemptions.

\(f\) In calculating instant or future contract savings on
firm-fixed-price contracts when the parties have not set out a specific
figure for profit, the contracting officer shall use the total contract
price as the basis for calculating the savings.

**1848.103 Processing value engineering** **change proposals.**

\(a\) Upon receipt of a VECP, the contracting officer shall promptly
forward it to the technical officer responsible for the contract with
the following information:

**(i)** Date of VECP receipt;

**(ii)** Date for notifying the contractor of VECP acceptance or
rejection;

**(iii)** Notification of the potential for awarding concurrent, future,
or collateral savings to the contractor if the VECP is accepted;

**(iv)** Request for a technical evaluation, with complete rationale for
recommended acceptance or rejection, to include if acceptance is
recommended:

**(A)** An estimate of the type of savings, Government costs, etc., that
can be expected from its acceptance;

**(B)** A procurement request setting forth the specification changes to
be used in any contract modification accepting the VECP in whole or in
part; and

**(C)** Additional funds if acceptance of the VECP results in negative
instant contract savings.

**(v)** Technical evaluation due date.

**1848.104 Sharing arrangements.**

**1848.104-3** **Sharing collateral savings.**

\(a\) The contracting officer is authorized to make the determination
that the cost of calculating and tracking collateral savings will exceed
the benefits to be derived.

**Subpart 1848.2\--Contract Clauses**

**1848.201 Clauses for supply or service** **contracts.**

(a)(6) The Assistant Administrator for Procurement (Code HS) is the
approval authority for exemptions.

\(b\) The contracting officer shall not insert the clause at FAR
52.248-1, Value Engineering, either with or without its Alternates, in
an R&D contract where the statement of work is essentially an
incorporation by reference of the prospective contractor\'s proposal. If
any other part of the statement of work in such a contract reflects a
Government specification that might benefit from application of VE
techniques, the contracting officer shall consider inserting the VE
incentive clause at FAR 52.248-1 with any applicable Alternate(s), and
establish the applicability of the clause to that part.

\(c\) Except as prescribed in paragraph (b) of this section, the
contracting officer shall insert the clause at FAR 52.248-1 with its
Alternate I in initial production contracts for major systems, and major
systems R&D contracts for full-scale development, unless the contracting
officer determines in writing that its use is inappropriate. Use of
Alternate I is appropriate for an R&D major systems contract only if the
contract specifications contain detailed requirements that lend
themselves to VE.

\(d\) The contracting officer shall insert the clause at FAR 52.248-1
with its Alternate II under the conditions prescribed in paragraph (c)
of this section.

The Assistant Administrator for Procurement (Code HS) must be notified
prior to taking any action to terminate because of a major breach of
safety or security.

**1849.105 Duties of termination** **contracting officer after issuance
of** **notice of termina­tion.**

**1849.105-70 Termination docket checklist.**

The termination contracting officer shall complete NASA Form 1413,
Termina­tion Docket Checklist.

**1849.110 Settlement negotiation memorandum.**

**1849.110-70 Memorandum contents.**

The TCO shall include the following information in the settlement
negotiation memorandum. Contractors and subcontractors are encouraged to
use this format appropriately modified for subcontract settlements
submitted for review and approval.

\(a\) *General information.*

\(1\) *Identification.*

\(i\) Name and address of the contractor and any pertinent affiliation
between prime contractors and subcontractors rela­tive to the overall
settlement.

\(ii\) Names and titles of contractor and Govern­ment person­nel who
participated in the negotiation.

\(2\) *Description of terminated contract.*

\(i\) Contract number

\(ii\) Date of award;

\(iii\) Contract type;

\(iv\) General description of con­tract items;

\(v\) Total contract price; and

\(vi\) Applicable contract termi­nation provisions and clause.

\(3\) *Termination notice.*

\(i\) Date of the termination notice;

\(ii\) Effective date of termi­na­tion;

\(iii\) Scope and nature of termi­na­tion (complete or partial);

\(iv\) Items terminated;

\(v\) Unit prices;

\(vi\) Total price of items termi­nated for fixed-price contracts or the
estimated cost and fee applicable to items terminated for
cost-reimbursement type contracts;

\(vii\) Whether the termination no­tice was amended and, if so, why;

\(viii\) Whether the contractor stopped work on the termination
effective date (if it did not, furnish details) and whether subcontracts
were terminated promptly;

\(ix\) Any redirection of common items and return of goods to the
contractor\'s suppliers; and

\(x\) Extent of contract perfor­mance and timely deliveries by the
contractor.

\(b\) *Contractor\'s settlement proposal.*

\(1\) *Date and amount.* Date and location where the claim was filed and
its gross amount (if interim settlement proposals were filed,
information shall be furnished for each claim).

\(2\) *Basis of claim.* E.g., inventory, total cost, or other basis,
including an explanation of any approvals granted in connec­tion with
submission on other than an inventory basis.

\(3\) *Examination of proposal.* Types of reviews made and by whom
(audit, engineering, legal, or other).

\(c\) *Tabular summary of contractor\'s claim and the settlement.* The
cost elements/items, the amounts claimed, the Government recom­mended
position (includ­ing auditor, field, and technical personnel
recommendations), and the negotiated settlement amounts. This summary
shall include, if appropriate, previously reimbursed and unreimbursed
costs applicable to the prime contractor and subcontractor, previous
profit/fees paid and unpaid; settlement cost less disposal credit or
other credits, and a recapitulation of previous settlements. The summary
of the negotiated settlement shall include the amount claimed and
allowed for contractor and/or subcontractor changes, disposal, prior
pay­ment credits, and contract price.

\(d\) *Settlement narrative summary.*

\(1\) Contractor\'s cost.

\(2\) Profit/Fee*.*

\(3\) Settlement expenses not included in the audit.

\(4\) Number and dollar amount of any subcontractor settlements approved
by the TCO and concluded by the contractor under delegation of
authority.

\(5\) Total amount of any partial payments.

\(6\) Total of unliquidated progress or advance payments.

\(7\) Claims of the Government against the contractor included in
settlement agree­ment reservations.

\(8\) Assignments, including the name and ad­dress of each assignee.

\(9\) Disposal credits.

\(10\) Status of plant clearance actions and all inventory sold,
retained, or otherwise properly dis­posed of in accordance with
applicable plant clear­ance regulations, including a consoli­dated closing
plant clearance report, if applicable.

\(11\) Status of Government property accountability.

\(12\) Disposition of any special tool­ing, if applicable.

\(13\) Proposed reservations of rights to the Government or to the
contractor.

\(e\) *Recommendation.* Amount of the gross settlement rec­ommended and
TCO statement that it is fair and reason­able to the Government and the
contractor.

\(f\) *TCO Signature and date.*

**1849.111 Review of proposed settlements.**

**(1)** Settlements shall be reviewed in accordance with
center-prescribed procedures.

**(2)** The TCO may authorize the contract adminis­tration office
cognizant of a lower-tier subcontractor to grant approval or
ratifica­tion of proposed subcontractor settle­ments de­scribed in FAR
49.108-3(c) that are first reviewed and referred by the prime contractor
to the TCO. This proce­dure is not applicable to settlements be­tween the
con­tractor and its first tier subcontractors.

**Subpart 1849.5\--Contract** **Termination Clauses**

**1849.505**  **Other** **termination** **clauses.**

**PART 1850**

**EXTRAORDINARY CONTRACTUAL ACTIONS**

**TABLE OF CONTENTS**

**SUBPART 1850.2 DELEGATION OF AND LIMITATIONS ON EXERCISE OF**

**AUTHORITY**

1850.202 Contract adjustment boards.

**SUBPART 1850.3 CONTRACT ADJUSTMENTS**

1850.305 Processing cases.

1850.305-70 Submission of request to the Contract Adjustment Board.

1850.306 Disposition.

1850.306-70 Implementation of the Contract Adjustment Board\'s decision.

**SUBPART 1850.4 RESIDUAL POWERS**

1850.403 Special procedures for unusually hazardous or nuclear risks.

1850.403-1 Indemnification requests.

1850.403-170 Subcontractor indemnification requests.

1850.403-2 Action on indemnification requests.

1850.470 Lead NASA installation.

**PART 1850**

**EXTRAORDINARY CONTRACTUAL ACTIONS**

**Subpart 1850.2\--Delegation of and Limitations on Exercise of
Authority**

**1850.202** **Contract** **adjustment boards.**

14 CFR part 1209, subpart 3, Contract Adjustment Board, establishes the
Contract Adjustment Board (CAB) as the approving authority to consider
and dispose of requests from NASA contractors for extraordinary
contractual actions.

**Subpart 1850.3\--Contract Adjustments**

**1850.305**  **Processing** **cases.**

**1850.305-70 Submission** **of** **request** **to** **the**
**Contract** **Adjustment** **Board.**

\(a\) After investigating the facts and issues relevant to the
contractor\'s request, the contracting officer shall forward the request
to the Associate General Counsel for General Law (Code GG), including in
the forwarding letter \--

\(1\) The nature of the case;

\(2\) The recommended disposition; and,

\(3\) If contractual action is recommended, the contracting officer\'s
opinion that the action will facilitate the national defense.

\(b\) The forwarding letter shall enclose the contractor\'s request, all
supporting material submitted by the contractor, and any material the
contracting officer has obtained while investigating the facts and
issues relevant to the request. Any classified information in the
material forwarded shall be so identified.

\(c\) Electronic submittal is preferred for unclassified material.

**1850.306  Disposition.**

**1850.306-70 Implementation of the Contract Adjustment Board\'s**
**decision.**

\(a\) The contracting officer shall take action authorized in the CAB's
decision.

\(b\) Immediately upon execution, including any required Headquarters
approval, of a contract or contract modification or amendment
implementing the CAB decision, the contracting officer shall forward a
copy of the contractual document to the Associate General Counsel for
General Law (Code GG).

**Subpart 1850.4\--Residual Powers**

**1850.403 Special** **procedures** **for** **unusually hazardous**
**or** **nuclear** **risks.**

**1850.403-1 Indemnification** **requests.**

\(a\) The contractor shall also provide evidence, such as a certificate
of insurance or other customary proof of insurance, that such insurance
is either in force or is available and will be in force during the
indemnified period.

**1850.403-170 Subcontractor indemnification requests.**

Subcon­tractors shall submit requests for indemni­fication to the prime
contractor and through higher tier subcontractor(s), as applicable. If
the prime contractor agrees an indemnity clause should be flowed down to
the subcontractor, the prime contractor shall forward its written
request for subcontrac­tor indemnification to the cognizant con­tracting
officer for approval in accordance with FAR 50.403-1. The prime
contractor\'s request shall provide informa­tion responsive to
1850.403-1, FAR 50.403-1, and FAR 50.403-2(a)(1), (2), (4), (5) and (7).
The agreed upon definition of the unusually hazardous risk to be
incorpo­rated into the subcontract shall be the same as that incor­porated
in the prime contract.

**1850.403-2** **Action** **on** **indemnification** **requests.**

\(a\) If recommending approval, the contracting officer shall forward
the required information to the Assistant Administrator for Procurement
(Code HS), along with the following:

**(i)** For contracts of five years duration or longer, a determina­tion,
with supporting rationale, whether the indemnification ap­proval and
insurance coverage and premi­ums should be reviewed for adequacy and
continued validity at points in time within the extended contract
period.

**(ii)** A recommended Memorandum of Decision. In addition to the
applicable requirements of FAR 50.306, the Memorandum of Decision shall
contain the following:

**(A)** The specific definition of the unusu­ally hazardous risk to which
the contractor is exposed in the performance of the con­tract(s);

**(B)** A complete discussion of the contrac­tor\'s financial protection
program; and

**(C)** The extent to, and conditions under, which indemnification is
being approved for subcontracts.

\(d\) If approving subcontractor indemnification, the contracting
officer shall docu­ment the file with a memorandum for record addressing
the items set forth in FAR 50.403-2(a) and include an analysis of the
subcont­ractor\'s financial protection program. In performing this
analysis, the contracting officer shall take into consideration the
availability, cost, terms and conditions of insurance in relation to the
unusually haz­ardous risk.

**1850.470 Lead** **NASA installation.**

\(a\) Contractors applying for indemnification shall determine which
NASA installation has the highest dollar amount of contracts for which
indemnification is requested. The indemnification request should be
submitted to the procurement officer for that installation, who will
then designate a cognizant contracting officer. Contractors shall submit
a single request and ensure duplicate requests are not submitted by
associate divisions, subsidiaries, or central offices of the contractor.

\(b\) The receiving installation will become the lead installation and
will remain so indefinitely. Lead installation designation may change to
another installation if the affected procurement officers agree to the
change. Should a change occur in the lead installation, all records
related to indemnification of that contractor shall be transferred to
the gain­ing installation.

**(A)** *I.2 **BID ENVELOPES (GSFC 52.214-90) (AUGUST 1987)*** This
example is applicable when identifying the title of provisions and
clauses in solicitations and contracts using the uniform contract format
(UCF). The first number (\"I.2\") designates the UCF section and the
sequential clause within that section. \"GSFC 52.214-90\" specifies the
clause number.

**(B)** ***GSFC 52.214-90\--Bid Envelopes (AUGUST 1987)*** This example
is applicable in all instances in which the provision or clause citation
is not associated with the UCF number.

\(c\) Contracting officers shall not number provisions and clauses
developed for individual acquisitions only. For example, \"F.3 Delivery
Procedures for Special Hardware\" cites the third clause in Section F of
a contract using the UCF, but has no clause number or date identified
with it, indicating that the clause was developed for the particular
contract it appears in.

**1852.103-70 Identification of modified provisions and clauses.**

When a FAR clause or provision is included in a solicitation or contract
and the NFS prescribes a modification, the title line shall identify the
modification as shown below. This format shall be used both for
incorporation by reference and when using full text.

\"52.232-28 Electronic Funds Transfer Payment Methods (APR 1989)\--as
modified by NASA FAR Supplement 1832.908(a)\"

**1852.104 Procedures for modifying and completing provisions and
clauses.**

NFS provisions and clauses shall not be modified unless authorized by
the NFS. When authorized, contracting officers must comply with the
procedures in FAR 52.104.

**Subpart 1852.2\--Text of Provisions and Clauses**

**1852.203-70 Display of Inspector General Hotline Posters.**

As prescribed in 1803.7001, insert the following clause:

**DISPLAY OF INSPECTOR GENERAL HOTLINE POSTERS**

**(JUNE 2001)**

\(a\) The Contractor shall display prominently in common work areas
within business segments performing work under this contract, Inspector
General Hotline Posters available under paragraph (b) of this clause.

\(b\) Inspector General Hotline Posters may be obtained from NASA Office
of Inspector General, Code W, Washington, DC, 20546-0001, (202)
358-1220.

**(End of clause)**

**1852.204-74 Central Contractor Registration.**

As prescribed in 1804.7404, insert the following clause:

**CENTRAL CONTRACTOR REGISTRATION**

**(MAY 2002)**

\(a\) *Definitions.* As used in this clause\--

\(1\) **"Central Contractor Registration (CCR) database"** means the
primary DoD repository for contractor information required for the
conduct of business with NASA.

\(2\) **"Data Universal Number System (DUNS) number"** means the 9-digit
number assigned by Dun and Bradstreet Information Services to identify
unique business entities.

\(3\) **"Data Universal Numbering System +4 (DUNS+4) number"** means the
DUNS number assigned by Dun and Bradstreet plus a 4-digit suffix that
may be assigned by a parent (controlling) business concern. This 4-digit
suffix may be assigned at the discretion of the parent business concern
for such purposes as identifying sub-units or affiliates of the parent
business concern.

\(4\) **"Commercial and Government Entity Code (CAGE Code)"** means --

\(i\) A code assigned by the Defense Logistics Information Service
(DLIS) to identify a commercial or Government entity; or

\(ii\) A code assigned by a member of the North Atlantic Treaty
Organization (NATO) that is recorded and maintained by DLIS in the CAGE
master file.

\(5\) **"Registered in the CCR database"** means that all mandatory
information, including the DUNS number or the DUNS+4 number, if
applicable, and the corresponding CAGE code, is in the CCR database; the
DUNS number and the CAGE code have been validated; and all edits have
been successfully completed.

(b)(1) By submission of an offer, the offeror acknowledges the
requirement that a prospective awardee must be registered in the CCR
database prior to award, during performance, and through final payment
of any contract resulting from this solicitation, except for awards to
foreign vendors performing work outside of the United States.

\(2\) The Contracting Officer will verify that the offeror is registered
in the CCR database.

\(3\) Lack of registration in the CCR database will make an offeror
ineligible for award after March 31, 2001.

\(4\) DoD has established a goal of registering an applicant in the CCR
database within 48

hours after receipt of a complete and accurate application via the
Internet. However, registration of an applicant submitting an
application through a method other than the Internet may take up to 30
days. Therefore, offerors that are not registered should consider
applying for registration immediately upon receipt of this solicitation.

\(c\) The Contractor is responsible for the accuracy and completeness of
the data within the CCR, and for any liability resulting from the
Government's reliance on inaccurate or incomplete data. To remain
registered in the CCR database after the initial registration, the
Contractor is required to confirm on an annual basis that its
information in the CCR database is accurate and complete.

\(d\) Offerors and contractors may obtain information on registration
and annual confirmation requirements via the Internet at
http://www.ccr.gov or by calling 888-CCR-2423 (888-227-2423).

**(End of clause)**

**1852.204-75 Security Classification Requirements.**

As prescribed in 1804.404-70, insert the following clause:

**SECURITY** **CLASSIFICATION REQUIREMENTS**

**(SEPTEMBER 1989)**

Performance under this contract will involve access to and/or generation
of classified information, work in a security area, or both, up to the
level of [                           ]{.underline} \[insert the
applicable security clearance level\]. See Federal Acquisition
Regulation clause 52.204-2 in this contract and DD Form 254, Contract
Security Classification Specification, Attachment [     ]{.underline}
\[Insert the attachment number of the DD Form 254\].

**(End of clause)**

**1852.227-11 Patent Rights\--Retention by the Contractor (Short
Form).**

As prescribed at 1827.303-70(a), modify the clause at FAR 52.227-11 by
adding the following subparagraph (5) to paragraph (c) of the basic
clause; adding the following subparagraph (5) to paragraph (f); and
using the following subparagraph (2) in lieu of subparagraph (g)(2) of
the basic clause:

(c)(5) The Contractor may use whatever format is convenient to disclose
subject inventions requireD in subparagraph (c)(1). NASA prefers that
the contractor use either the electronic or paper version of NASA Form
1679, Disclosure of Invention and New Technology (Including Software) to
disclose subject inventions. Both the electronic and paper versions of
NASA Form 1679 may be accessed at the electronic New Technology
Reporting Web site http://invention.nasa.gov.

**(End of addition)**

(f)(5) The Contractor shall provide the Contracting Officer the
following:

\(i\) A listing every 12 months (or such longer period as the
Contracting Officer may specify) from the date of the contract, of all
subject inventions required to be disclosed during the period.

\(ii\) A final report prior to closeout of the contract listing all
subject inventions or certifying that there were none.

\(iii\) Upon request, the filing date, serial number and title, a copy
of the patent application, and patent number and issue date for any
subject invention in any country in which the contractor has applied for
patents.

\(iv\) An irrevocable power to inspect and make copies of the patent
application file, by the Government, when a Federal Government employee
is a coinventor.

**(End of addition)**

(g)(2) The Contractor shall include the clause in the NASA FAR
Supplement at 1852.227-70, New Technology, suitably modified to identify
the parties, in all subcontracts, regardless of tier, for experimental,
developmental, research, design, or engineering work to be performed by
other than a small business firm or nonprofit organization.

**(End of substitution)**

**1852.227-14 Rights In Data\--General.**

As prescribed in 1827.409(a), add the following subparagraph (3) to
paragraph (d) of the basic clause at FAR 52.227-14:

(3)(i) The Contractor agrees not to estab­lish claim to copyright,
publish or release to others any computer soft­ware first pro­duced in the
performance of this contract without the Contracting Officer\'s prior
written permission.

\(ii\) If the Government desires to obtain copyright in computer
soft­ware first pro­duced in the performance of this con­tract and
permission has not been granted as set forth in paragraph (d)(3)(i) of
this clause, the Contracting Officer may direct the contractor to
assert, or authorize the asser­tion of, claim to copyright in such data
and to assign, or obtain the assignment of, such copyright to the
Government or its desig­nated assignee.

\(iii\) Whenever the word \"establish\" is used in this clause, with
reference to a claim to copyright, it shall be con­strued to mean
\"assert\".

**(End of addition)**

**1852.227-17 Rights in Data\--Special Works**

As prescribed in 1827.409(i), add the following paragraph (f) to the
basic clause at FAR 52.227-17:

\(f\) Whenever the words \"establish\" and \"establishment\" are used in
this clause, with reference to a claim to copyright, they shall be
construed to mean \"assert\" and \"asser­tion\", respective­ly.

**(End of addition)**

**1852.227-19 Commercial Computer** **Software\--Restricted Rights.**

\(a\) As prescribed in 1827.409(k)(i), add the following paragraph (e)
to the basic clause at FAR 52.227-19:

\(e\) For the purposes of receiving updates, correction notices,
consultation information, or other similar information regarding any
computer software delivered under this contract/purchase order, the NASA
Contracting Officer or the NASA Contracting Officer\'s Technical
Representative/User may sign any vendor-supplied agreements,
registration forms, or cards and return them directly to the vendor;
however, such signing shall not alter any of the rights or obligations
of either NASA or the vendor set forth in this clause or elsewhere in
this contract/purchase order.

**(End of addition)**

\(b\) As prescribed in 1827.409(k)(ii), add the following paragraph (f)
to the basic clause at FAR 52.227-19:

\(f\) Subject to paragraphs (a) through (e) above, those applicable
portions of the Contractor\'s standard commercial license or lease
agreement pertaining to any computer software delivered under this
purchase order/contract that are consistent with Federal laws, standard
industry practices, and the Federal Acquisition Regulation (FAR) shall
be incorporated into and made part of this purchase order/contract.

**(End of addition)**

**1852.227-70** **New** **Technology.**

As prescribed in 1827.303-70(b), insert the following clause:

**NEW TECHNOLOGY**

**(MAY 2002)**

\(a\) **Definitions.**

**\"Administrator,\"** as used in this clause, means the Administrator
of the National Aeronautics and Space Administration (NASA) or duly
authorized representative.

**\"Contract,\"** as used in this clause, means any actual or proposed
contract, agreement, understanding, or other arrangement, and includes
any assignment, substitution of parties, or subcontract executed or
entered into thereunder.

**\"Made,\"** as used in this clause, means conception or first actual
reduction to practice; [provided]{.underline}, that in the case of a
variety of plant, the date of determination (as defined in Section 41(d)
of the Plant Variety Protection Act, 7 U.S.C. 2401(d)) must also occur
during the period of contract performance.

**\"Nonprofit organization,\"** as used in this clause, means a domestic
university or other institution of higher education or an organization
of the type described in section 501(c)(3) of the Internal Revenue Code
of 1954 (26 U.S.C. 501(c)) and exempt from taxation under section 501(a)
of the Internal Revenue Code (26 U.S.C. 501(a)), or any domestic
nonprofit scientific or educational organization qualified under a State
nonprofit organization statute.

**\"Practical application,\"** as used in this clause, means to
manufacture, in the case of a composition or product; to practice, in
the case of a process or method; or to operate, in case of a machine or
system; and, in each case, under such conditions as to establish that
the invention is being utilized and that its benefits are, to the extent
permitted by law or Government regulations, available to the public on
reasonable terms.

**\"Reportable item,\"** as used in this clause, means any invention,
discovery, improvement, or innovation of the contractor, whether or not
patentable or otherwise protectible under Title 35 of the United States
Code, made in the performance of any work under any NASA contract or in
the performance of any work that is reimbursable under any clause in any
NASA contract providing for reimbursement of costs incurred before the
effective date of the contract. Reportable items include, but are not
limited to, new processes, machines, manufactures, and compositions of
matter, and improvements to, or new applications of, existing processes,
machines, manufactures, and compositions of matter. Reportable items
also include new computer programs, and improvements to, or new
applications of, existing computer programs, whether or not
copyrightable or otherwise protectible under Title 17 of the United
States Code.

**\"Small business firm,\"** as used in this clause, means a domestic
small business concern as defined at 15 U.S.C. 632 and implementing
regulations of the Administrator of the Small Business Administration.
(For the purpose of this definition, the size standard contained in 13
CFR 121.3-8 for small business contractors and in 13 CFR 121.3-12 for
small business subcontractors will be used.)

**\"Subject invention,\"** as used in this clause, means any reportable
item which is or may be patentable or otherwise protectible under Title
35 of the United States Code, or any novel variety of plant that is or
may be protectible under the Plant Variety Protection Act (7 U.S.C.
2321, [et]{.underline} [seq]{.underline}.).

\(b\) **Allocation** **of** **principal** **rights.**

\(1\) ***Presumption** **of title.***

\(i\) Any reportable item that the Administrator considers to be a
subject invention shall be presumed to have been made in the manner
specified in paragraph (1) or (2) of Section 305(a) of the National
Aeronautics and Space Act of 1958 (42 U.S.C. 2457(a)) (hereinafter
called \"the Act\"), and the above presumption shall be conclusive
unless at the time of reporting the reportable item the Contractor
submits to the Contracting Officer a written statement, containing
supporting details, demonstrating that the reportable item was not made
in the manner specified in paragraph (1) or (2) of Section 305(a) of the
Act.

\(ii\) Regardless of whether title to a given subject invention would
otherwise be subject to an advance waiver or is the subject of a
petition for waiver, the Contractor may nevertheless file the statement
described in paragraph (b)(1)(i) of this clause. The Administrator will
review the information furnished by the Contractor in any such statement
and any other available information relating to the circumstances
surrounding the making of the subject invention and will notify the
Contractor whether the Administrator has determined that the subject
invention was made in the manner specified in paragraph (1) or (2) of
Section 305(a) of the Act.

\(2\) ***Property** **rights** **in** **subject inventions. *** Each
subject invention for which the presumption of paragraph (b)(1)(i) of
this clause is conclusive or for which there has been a determination
that it was made in the manner specified in paragraph (1) or (2) of
Section 305(a) of the Act shall be the exclusive property of the United
States as represented by NASA unless the Administrator waives all or any
part of the rights of the United States, as provided in paragraph (b)(3)
of this clause.

\(3\) ***Waiver** **of rights.***

\(i\) Section 305(f) of the Act provides for the promulgation of
regulations by which the Administrator may waive the rights of the
United States with respect to any invention or class of inventions made
or that may be made under conditions specified in paragraph (1) or (2)
of Section 305(a) of the Act. The promulgated NASA Patent Waiver
Regulations, 14 CFR Section 1245, Subpart 1, have adopted the
Presidential Memorandum on Government Patent Policy of February 18,
1983, as a guide in acting on petitions (requests) for such waiver of
rights.

\(ii\) As provided in 14 CFR 1245, Subpart 1, Contractors may petition,
either prior to execution of the contract or within 30 days after
execution of the contract, for advance waiver of rights to any or all of
the inventions that may be made under a contract. If such a petition is
not submitted, or if after submission it is denied, the Contractor (or
an employee inventor of the Contractor) may petition for waiver of
rights to an identified subject invention within eight months of first
disclosure of invention in accordance with paragraph (e)(2) of this
clause, or within such longer period as may be authorized in accordance
with 14 CFR 1245.105.

\(c\) **Minimum** **rights** **reserved** **by** **the** **Government.**

(1)  With respect to each subject invention for which a waiver of rights
is applicable in accordance with 14 CFR Section 1245, Subpart 1, the
Government reserves\--

\(i\) An irrevocable, nonexclusive, nontransferable, royalty-free
license for the practice of such invention throughout the world by or on
behalf of the United States or any foreign government in accordance with
any treaty or agreement with the United States; and

\(ii\) Such other rights as stated in 14 CFR 1245.107.

(2)  Nothing contained in this paragraph (c) shall be considered to
grant to the Government any rights with respect to any invention other
than a subject invention.

\(d\) **Minimum** **rights** **to** **the** **Contractor.**

\(1\) The Contractor is hereby granted a revocable, nonexclusive,
royalty-free license in each patent application filed in any country on
a subject invention and any resulting patent in which the Government
acquires title, unless the Contractor fails to disclose the subject
invention within the times specified in paragraph (e)(2) of this clause.
The Contractor\'s license extends to its domestic subsidiaries and
affiliates, if any, within the corporate structure of which the
Contractor is a party and includes the right to grant sublicenses of the
same scope to the extent the Contractor was legally obligated to do so
at the time the contract was awarded. The license is transferable only
with the approval of the Administrator except when transferred to the
successor of that part of the Contractor\'s business to which the
invention pertains.

(2)  The Contractor\'s domestic license may be revoked or modified by
the Administrator to the extent necessary to achieve expeditious
practical application of the subject invention pursuant to an
application for an exclusive license submitted in accordance with 37 CFR
Part 404, Licensing of Government Owned Inventions. This license will
not be revoked in that field of use or the geographical areas in which
the Contractor has achieved practical application and continues to make
the benefits of the invention reasonably accessible to the public. The
license in any foreign country may be revoked or modified at the
discretion of the Administrator to the extent the Contractor, its
licensees, or its domestic subsidiaries or affiliates have failed to
achieve practical application in that foreign country.

\(3\) Before revocation or modification of the license, the Contractor
will be provided a written notice of the Administrator\'s intention to
revoke or modify the license, and the Contractor will be allowed 30 days
(or such other time as may be authorized by the Administrator for good
cause shown by the Contractor) after the notice to show cause why the
license should not be revoked or modified. The Contractor has the right
to appeal to the Administrator any decision concerning the revocation or
modification of its license.

\(e\) **Invention** **identification,** **disclosures,** **and**
**reports.**

\(1\) The Contractor shall establish and maintain active and effective
procedures to assure that reportable items are promptly identified and
disclosed to Contractor personnel responsible for the administration of
this New Technology clause within six months of conception and/or first
actual reduction to practice, whichever occurs first in the performance
of work under this contract. These procedures shall include the
maintenance of laboratory notebooks or equivalent records and other
records as are reasonably necessary to document the conception and/or
the first actual reduction to practice of the reportable items, and
records that show that the procedures for identifying and disclosing
reportable items are followed. Upon request, the Contractor shall
furnish the Contracting Officer a description of such procedures for
evaluation and for determination as to their effectiveness.

\(2\) The Contractor will disclose each reportable item to the
Contracting Officer within two months after the inventor discloses it in
writing to Contractor personnel responsible for the administration of
this New Technology clause or, if earlier, within six months after the
Contractor becomes aware that a reportable item has been made, but in
any event for subject inventions before any on sale, public use, or
publication of such invention known to the Contractor. The disclosure to
the agency shall be in the form of a written report and shall identify
the contract under which the reportable item was made and the
inventor(s) or innovator(s). It shall be sufficiently complete in
technical detail to convey a clear understanding, to the extent known at
the time of the disclosure, of the nature, purpose, operation, and
physical, chemical, biological, or electrical characteristics of the
reportable item. The disclosure shall also identify any publication, on
sale, or public use of any subject invention and whether a manuscript
describing such invention has been submitted for publication and, if so,
whether it has been accepted for publication at the time of disclosure.
In addition, after disclosure to the agency, the Contractor will
promptly notify the agency of the acceptance of any manuscript
describing a subject invention for publication or of any on sale or
public use planned by the Contractor for such invention.

> \(3\) The Contractor may use whatever format is convenient to disclose
> reportable items required in subparagraph (e)(2). NASA prefers that
> the Contractor use either the electronic or paper version of NASA Form
> 1679, Disclosure of Invention and New Technology (Including Software)
> to disclose reportable items. Both the electronic and paper versions
> of NASA Form 1679 may be accessed at the electronic New Technology
> Reporting Web site http://invention.nasa.gov.
>
> (4) The Contractor shall furnish the Contracting Officer the
> following:

\(i\) Interim reports every 12 months (or such longer period as may be
specified by the Contracting Officer) from the date of the contract,
listing reportable items during that period, and certifying that all
reportable items have been disclosed (or that there are no such
inventions) and that the procedures required by paragraph (e)(1) of this
clause have been followed.

\(ii\) A final report, within 3 months after completion of the
contracted work, listing all reportable items or certifying that there
were no such reportable items, and listing all subcontracts at any tier
containing a patent rights clause or certifying that there were no such
subcontracts.

\(5\) The Contractor agrees, upon written request of the Contracting
Officer, to furnish additional technical and other information available
to the Contractor as is necessary for the preparation of a patent
application on a subject invention and for the prosecution of the patent
application, and to execute all papers necessary to file patent
applications on subject inventions and to establish the Government\'s
rights in the subject inventions.

\(6\) The Contractor agrees, subject to paragraph 27.302(i), of the
Federal Acquisition Regulation (FAR), that the Government may duplicate
and disclose subject invention disclosures and all other reports and
papers furnished or required to be furnished pursuant to this clause.

\(f\) **Examination** **of** **records** **relating** **to**
**inventions.**

\(1\) The Contracting Officer or any authorized representative shall,
until 3 years after final payment under this contract, have the right to
examine any books (including laboratory notebooks), records, and
documents of the Contractor relating to the conception or first actual
reduction to practice of inventions in the same field of technology as
the work under this contract to determine whether\--

\(i\) Any such inventions are subject inventions;

\(ii\) The Contractor has established and maintained the procedures
required by paragraph (e)(1) of this clause; and

\(iii\) The Contractor and its inventors have complied with the
procedures.

\(2\) If the Contracting Officer learns of an unreported Contractor
invention that the Contracting Officer believes may be a subject
invention, the Contractor may be required to disclose the invention to
the agency for a determination of ownership rights.

(3)  Any examination of records under this paragraph will be subject to
appropriate conditions to protect the confidentiality of the information
involved.

\(g\) **Withholding of payment (this** **paragraph does not apply to**
**subcontracts).**

\(1\) Any time before final payment under this contract, the Contracting
Officer may, in the Government\'s interest, withhold payment until a
reserve not exceeding \$50,000 or 5 percent of the amount of this
contract, whichever is less, shall have been set aside if, in the
Contracting Officer\'s opinion, the Contractor fails to\--

\(i\) Establish, maintain, and follow effective procedures for
identifying and disclosing reportable items pursuant to paragraph (e)(1)
of this clause;

\(ii\) Disclose any reportable items pursuant to paragraph (e)(2) of
this clause;

\(iii\) Deliver acceptable interim reports pursuant to paragraph
(e)(3)(i) of this clause; or

\(iv\) Provide the information regarding subcontracts pursuant to
paragraph (h)(4) of this clause.

(2)  Such reserve or balance shall be withheld until the Contracting
Officer has determined that the Contractor has rectified whatever
deficiencies exist and has delivered all reports, disclosures, and other
information required by this clause.

\(3\) Final payment under this contract shall not be made before the
Contractor delivers to the Contracting Officer all disclosures of
reportable items required by paragraph (e)(2) of this clause, and an
acceptable final report pursuant to paragraph (e)(3)(ii) of this clause.

(4) The Contracting Officer may decrease or increase the sums withheld
up to the maximum authorized above. No amount shall be withheld under
this paragraph while the amount specified by this paragraph is being
withheld under other provisions of the contract. The withholding of any
amount or the subsequent payment thereof shall not be construed as a
waiver of any Government rights.

\(h\) **Subcontracts.**

\(1\) Unless otherwise authorized or directed by the Contracting
Officer, the Contractor shall\--

\(i\) Include this clause (suitably modified to identify the parties) in
any subcontract hereunder (regardless of tier) with other than a small
business firm or nonprofit organization for the performance of
experimental, developmental, or research work; and

\(ii\) Include the clause at FAR 52.227-11 (suitably modified to
identify the parties) in any subcontract hereunder (regardless of tier)
with a small business firm or nonprofit organization for the performance
of experimental, developmental, or research work.

\(2\) In the event of a refusal by a prospective subcontractor to accept
such a clause the Contractor\--

\(i\) Shall promptly submit a written notice to the Contracting Officer
setting forth the subcontractor\'s reasons for such refusal and other
pertinent information that may expedite disposition of the matter; and

\(ii\) Shall not proceed with such subcontract without the written
authorization of the Contracting Officer.

(3)  In the case of subcontracts at any tier, the agency, subcontractor,
and Contractor agree that the mutual obligations of the parties created
by this clause constitute a contract between the subcontractor and NASA
with respect to those matters covered by this clause.

(4)  The Contractor shall promptly notify the Contracting Officer in
writing upon the award of any subcontract at any tier containing a
patent rights clause by identifying the subcontractor, the applicable
patent rights clause, the work to be performed under the subcontract,
and the dates of award and estimated completion. Upon request of the
Contracting Officer, the Contractor shall furnish a copy of such
subcontract, and, no more frequently than annually, a listing of the
subcontracts that have been awarded.

(5)  The subcontractor will retain all rights provided for the
Contractor in the clause of subparagraph (h)(1)(i) or (ii) of this
clause, whichever is included in the subcontract, and the Contractor
will not, as part of the consideration for awarding the subcontract,
obtain rights in the subcontractor\'s subject inventions.

\(i\) **Preference** **for** **United** **States** **industry.** Unless
provided otherwise, no Contractor that receives title to any subject
invention and no assignee of any such Contractor shall grant to any
person the exclusive right to use or sell any subject invention in the
United States unless such person agrees that any products embodying the
subject invention will be manufactured substantially in the United
States. However, in individual cases, the requirement may be waived by
the Administrator upon a showing by the Contractor or assignee that
reasonable but unsuccessful efforts have been made to grant licenses on
similar terms to potential licensees that would be likely to manufacture
substantially in the United States or that under the circumstances
domestic manufacture is not commercially feasible.

**(End of clause)**

**1852.227-71** **Requests** **for** **Waiver** **of** **Rights** **to**
**Inventions.**

As prescribed in 1827.303-70(c), insert the following provision in all
solicitations that include the clause at 1852.227-70, New Technology:

**REQUESTS FOR** **WAIVER OF RIGHTS TO INVENTIONS**

**(APRIL 1984)**

\(a\) In accordance with the NASA Patent Waiver Regulations, 14 CFR
Section 1245, Subpart 1, waiver of rights to any or all inventions made
or that may be made under a NASA contract or subcontract with other than
a small business firm or a domestic nonprofit organization may be
requested at different time periods. Advance waiver of rights to any or
all inventions that may be made under a contract or subcontract may be
requested prior to the execution of the contract or subcontract, or
within 30 days after execution by the selected contractor. In addition,
waiver of rights to an identified invention made and reported under a
contract or subcontract may be requested, even though a request for an
advance waiver was not made or, if made, was not granted.

\(b\) Each request for waiver of rights shall be by petition to the
Administrator and shall include an identification of the petitioner;
place of business and address; if petitioner is represented by counsel,
the name, address and telephone number of the counsel; the signature of
the petitioner or authorized representative; and the date of signature.
No specific forms need be used, but the request should contain a
positive statement that waiver of rights is being requested under the
NASA Patent Waiver Regulations; a clear indication of whether the
request is for an advance waiver or for a waiver of rights for an
individual identified invention; whether foreign rights are also
requested and, if so, the countries, and a citation of the specific
section or sections of the regulations under which such rights are
requested; and the name, address, and telephone number of the party with
whom to communicate when the request is acted upon. Requests for advance
waiver of rights should, preferably, be included with the proposal, but
in any event in advance of negotiations.

\(c\) Petitions for advance waiver, prior to contract execution, must be
submitted to the Contracting Officer. All other petitions will be
submitted to the Patent Representative designated in the contract.

\(d\) Petitions submitted with proposals selected for negotiation of a
contract will be forwarded by the Contracting Officer to the
installation Patent Counsel for processing and then to the Inventions
and Contributions Board. The Board will consider these petitions and
where the Board makes the findings to support the waiver, the Board will
recommend to the Administrator that waiver be granted, and will notify
the petitioner and the Contracting Officer of the Administrator\'s
determination. The Contracting Officer will be informed by the Board
whenever there is insufficient time or information or other reasons to
permit a decision to be made without unduly delaying the execution of
the contract. In the latter event, the petitioner will be so notified by
the Contracting Officer. All other petitions will be processed by
installation Patent Counsel and forwarded to the Board. The Board shall
notify the petitioner of its action and if waiver is granted, the
conditions, reservations, and obligations thereof will be included in
the Instrument of Waiver. Whenever the Board notifies a petitioner of a
recommendation adverse to, or different from, the waiver requested, the
petitioner may request reconsideration under procedures set forth in the
Regulations.

**(End of provision)**

**1852.227-72** **Designation** **of** **New** **Technology**
**Representative** **and** **Patent** **Representative.**

As prescribed in 1827.303-70(d), insert the following clause:

**DESIGNATION OF NEW TECHNOLOGY REPRESENTATIVE**

**AND PATENT REPRESENTATIVE**

**(JULY 1997)**

\(a\) For purposes of administration of the clause of this contract
entitled \"New Technology\" or \"Patent Rights\--Retention by the
Contractor (Short Form),\" whichever is included, the following named
representatives are hereby designated by the Contracting Officer to
administer such clause:

+--------------------+---------------+---------------------------------+
| # Title            | **O           | **Address (including zip        |
|                    | ffice Code ** | code)**                         |
+--------------------+---------------+---------------------------------+
| New Technology     |               |                                 |
|                    |               |                                 |
| Representative     |               |                                 |
+--------------------+---------------+---------------------------------+
| Patent             |               |                                 |
|                    |               |                                 |
| Representative     |               |                                 |
+--------------------+---------------+---------------------------------+

\(b\) Reports of reportable items, and disclosure of subject inventions,
interim reports, final reports, utilization reports, and other reports
required by the clause, as well as any correspondence with respect to
such matters, should be directed to the New Technology Representative
unless transmitted in response to correspondence or request from the
Patent Representative. Inquires or requests regarding disposition of
rights, election of rights, or related matters should be directed to the
Patent Representative. This clause shall be included in any subcontract
hereunder requiring a \"New Technology\" clause or \"Patent
Rights\--Retention by the Contractor (Short Form)\" clause, unless
otherwise authorized or directed by the Contracting Officer. The
respective responsibilities and authorities of the above-named
representatives are set forth in 1827.305-370 of the NASA FAR
Supplement.

**(End of clause)**

**1852.227-84** **Patent** **Rights** **Clauses.**

The contracting officer shall insert the following provision as
prescribed in 1827.303-70(e):

**PATENT RIGHTS CLAUSES**

**(DECEMBER 1989)**

This solicitation contains the patent rights clauses of FAR 52.227-11
(as modified by the NFS) and NFS 1852.227-70. If the contract resulting
from this solicitation is awarded to a small business or nonprofit
organization, the clause at NFS 1852.227-70 shall not apply. If the
award is to other than a small business or nonprofit organization, the
clause at FAR 52.227-11 shall not apply.

**(End of Provision)**

**1852.227-85** **Invention** **Reporting** **and**
**Rights\--Foreign.**

As prescribed in 1827.303-70(f), insert the following clause:

**INVENTION REPORTING AND RIGHTS\--FOREIGN**

**(APRIL 1986)**

\(a\) As used in this clause, the term \"invention\" means any
invention, discovery or improvement, and \"made\" means the conception
or first actual demonstration that the invention is useful and operable.

\(b\) The Contractor shall report promptly to the Contracting Officer
each invention made in the performance of work under this contract. The
report of each such invention shall:

\(1\) Identify the inventor(s) by full name; and

\(2\) Include such full and complete technical information concerning
the invention as is necessary to enable an understanding of the nature
and operation thereof.

\(c\) The Contractor hereby grants to the Government of the United
States of America as represented by the Administrator of the National
Aeronautics and Space Administration the full right, title and interest
in and to each such invention throughout the world, except for the State
in which this contract is to be performed. As to such State, Contractor
hereby grants to the Government of the United States of America as
represented by the Administrator of the National Aeronautics and Space
Administration only an irrevocable, nontransferable, nonexclusive,
royalty-free license to practice each such invention by or on behalf of
the United States of America or any foreign government pursuant to any
treaty or agreement with the United States of America, provided that
Contractor within a reasonable time files a patent application in that
State for each such invention. Where Contractor does not elect to file
such patent application for any such invention in that State, full
right, title and interest in and to such invention in that State shall
reside in the Government of the United States of America as represented
by the Administrator of the National Aeronautics and Space
Administration.

\(d\) The Contractor agrees to execute or to secure the execution of
such legal instruments as may be necessary to confirm and to protect the
rights granted by paragraph (c) of this clause, including papers
incident to the filing and prosecution of patent applications.

\(e\) Upon completion of the contract work, and prior to final payment,
Contractor shall submit to the Contracting Officer a final report
listing all inventions reportable under this contract or certifying that
no such inventions have been made.

\(f\) In each subcontract, the Contractor awards under this contract
where the performance of research, experimental design, engineering, or
developmental work is contemplated, the Contractor shall include this
clause and the name and address of the Contracting Officer.

**(End of Clause)**

**1852.227-86  Commercial Computer Software\--Licensing.**

As prescribed in 1827.409-70, insert the following clause:

**COMMERCIAL COMPUTER SOFTWARE\--LICENSING**

**(DECEMBER 1987)**

\(a\) Any delivered commercial computer software (including
documentation thereof) developed at private expense and claimed as
proprietary shall be subject to the restricted rights in paragraph (d)
of this clause. Where the vendor/contractor proposes its standard
commercial software license, those applicable portions thereof
consistent with Federal laws, standard industry practices, the Federal
Acquisition Regulations (FAR) and the NASA FAR Supplement, including the
restricted rights in paragraph (d) of this clause, are incorporated into
and made a part of this purchase order/contract.

\(b\) Although the vendor/contractor may not propose its standard
commercial software license until after this purchase order/contract has
been issued, or at or after the time the computer software is delivered,
such license shall nevertheless be deemed incorporated into and made a
part of this purchase order/contract under the same terms and conditions
as in paragraph (a) of this clause. For purposes of receiving updates,
correction notices, consultation, and similar activities on the computer
software, the NASA Contracting Officer or the NASA Contracting
Officer\'s Technical Representative/User may sign any agreement,
license, or registration form or card and return it directly to the
vendor/contractor; however, such signing shall not alter any of the
terms and conditions of this clause.

\(c\) The vendor\'s/contractor\'s acceptance is expressly limited to the
terms and conditions of this purchase order/contract. If the specified
computer software is shipped or delivered to NASA, it shall be
understood that the vendor/contractor has unconditionally accepted the
terms and conditions set forth in this clause, and that such terms and
conditions (including the incorporated license) constitute the entire
agreement between the parties concerning rights in the computer
software.

\(d\) The following restricted rights shall apply:

\(1\) The commercial computer software may not be used, reproduced, or
disclosed by the Government except as provided below or otherwise
expressly stated in the purchase order/contract.

\(2\) The commercial computer software may be\--

\(i\) Used, or copied for use, in or with any computer owned or leased
by, or on behalf of, the Government; provided, the software is not used,
nor copied for use, in or with more than one computer simultaneously,
unless otherwise permitted by the license incorporated under paragraphs
(a) or (b) of this clause;

\(ii\) Reproduced for safekeeping (archives) or backup purposes;

\(iii\) Modified, adapted, or combined with other computer software,
provided that the modified, combined, or adapted portions of the
derivative software incorporating restricted computer software shall be
subject to the same restricted rights; and

\(iv\) Disclosed and reproduced for use by Government contractors or
their subcontractors in accordance with the restricted rights in
subparagraphs (d)(2)(i), (ii), and (iii) of this clause; provided they
have the Government\'s permission to use the computer software and have
also agreed to protect the computer software from unauthorized use and
disclosure.

\(3\) If the incorporated vendor\'s/contractor\'s software license
contains provisions or rights that are less restrictive than the
restricted rights in paragraph (d)(2) of this clause, then the less
restrictive provisions or rights shall prevail.

\(4\) If the computer software is published, copyrighted computer
software, it is licensed to the Government, without disclosure
prohibitions, with the rights in paragraphs (d)(2) and (3) of this
clause.

\(5\) The computer software may be marked with any appropriate
proprietary notice that is consistent with the rights in paragraphs
(d)(2), (3), and (4) of this clause.

**(End of clause)**

**1852.227-87  Transfer of Technical Data** **Under Space Station
International** **Agreements.**

As prescribed at 1827.670-2, insert the following clause:

**TRANSFER OF TECHNICAL DATA UNDER SPACE STATION**

**INTERNATIONAL AGREEMENTS**

**(APRIL 1989)**

1\. In the cooperative Space Station Freedom program, NASA has the
authority to provide to the international partners all information
necessary to implement the multilateral Space Station Intergovernmental
Agreement and the Space Station Memoranda of Understanding. NASA is
committed under these Space Station agreements to provide its
international Space Station partners with certain technical data which
are subject to the U.S. export control laws and regulations. NASA will
have obtained any necessary approvals from the Department of State for
the transfer of any such technical data. Space Station contractors,
acting as agents of NASA under the specific written direction of the
Contracting Officer, or designated representative, require no other
separate approval under the International Traffic in Arms Regulations
(ITAR) to transfer such data.

2\. The Contractor agrees, when specifically directed in writing by the
Contracting Officer, or designated representative, to transfer
identified technical data to a named foreign recipient, in the manner
directed. No export control marking should be affixed to the data unless
so directed. If directed, the text of the marking to be affixed will be
furnished by the Contracting Officer or designated representative.

3\. It should be emphasized that the transfer is limited solely to those
technical data which NASA specifically identifies and directs the
Contractor to transfer in accordance with 2, above, and that all other
transfers of technical data to foreign entities are subject to the
requirements of the U.S. export control laws and regulations.

4\. Nothing contained in this clause affects the allocation of technical
data rights between NASA and the Contractor or any subcontractors as set
forth in the Rights in Data clause of this Contract, nor the protection
of any proprietary technical data which may be available to the
Contractor or any subcontractor under that clause.

5\. The Contractor agrees to include this clause, including this
paragraph 5, in all subcontracts hereunder, appropriately modified to
reflect the relationship of the parties.

**(End of clause)**

**1852.232-81  Contract Funding.**

As prescribed in 1832.705-270(b), insert the following clause:

**CONTRACT FUNDING**

**(JUNE 1990)**

\(a\) 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 \$ [        ]{.underline}. This allotment
is for \[Insert applicable item number(s), task(s), or work
description\] [         ]{.underline} and covers the following estimated
period of performance: [          ]{.underline}.

\(b\) An additional amount of \$[        ]{.underline} 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**

**(MAY 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 Deputy 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 Deputy Assistant
Administrator for Procurement, NASA Code H, Washington, DC 20546-0001.

**(End of provision)**

**1852.235-70 Center for AeroSpace Information - Final Scientific and
Technical Reports.**

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

# CENTER FOR AEROSPACE INFORMATION - FINAL SCIENTIFIC AND TECHNICAL REPORTS

**(JULY 2000)**

\(a\) 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 central NASA repository of research
information, which may enhance contract performance. The address is set
out in paragraph (d) of this clause.

\(b\) 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.

\(c\) In addition to the final report, as defined at 1827.406-70(a)(3),
submitted to the contracting officer, a reproducible copy and a printed
or reproduced copy of the final report or data shall be concurrently
submitted to:

> Center for AeroSpace Information (CASI)
>
> Attn: Document Processing Section

7121 Standard Drive

Hanover, Maryland 21076-1320

Phone: 301-621-0390

FAX: 301-621-0134

\(d\) The last page of the final report submitted to CASI shall be a
completed Standard Form (SF) 298, Report Documentation Page. In addition
to the copy of the final report, the contractor shall provide, to CASI,
a copy of the letter transmitting the final report to NASA for its
Document Availability Authorization (DAA) review.

\(e\) The contractor shall not release the final report, outside of
NASA, until the DAA review has been completed by NASA and availability
of the report has been determined.

**(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]{.underline}, 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**

**(MAY 2002)**

\(a\) **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 (NPG 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 \[[insert page numbers or other
identification]{.underline}\] 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,