**PART** **1817**

# SPECIAL CONTRACTING METHODS

**TABLE OF CONTENTS**

**SUBPART [1817.1](#OLE_LINK1) MULTIYEAR CONTRACTING**

1817.105 Policy.

1817.105-1 Uses.

**SUBPART [1817.2](#OLE_LINK2) OPTIONS**

1817.200 Scope of subpart.

1817.203 Solicitations.

1817.204 Contracts.

1817.206 Evaluation.

1817.207 Exercise of options.

1817.207-70 Analysis to support exercise of options.

1817.208 Solicitation provisions and contract clauses.

**SUBPART [1817.4](#OLE_LINK4) LEADER COMPANY** **CONTRACTING**

1817.401 General.

**SUBPART [1817.5](#OLE_LINK5) INTERAGENCY ACQUISITIONS** **UNDER THE
ECONOMY ACT**

1817.500 Scope of subpart.

**SUBPART [1817.70](#OLE_LINK70) INTERAGENCY ACQUISITIONS**

1817.7000 Scope of subpart.

1817.7001 Authorization and policy.

1817.7002 Determinations and findings requirements.

1817.7003 Ordering Procedures.

1817.7004 Acquisitions with Military Departments.

1817.7004-1 Authorization and policy.

1817.7004-2 NASA-Interagency Purchase Request and acceptance.

1817.7004-3 Acceptance by Military Department.

1817.7004-4 Changes in estimated total prices.

1817.7004-5 Payments.

1817.7004-6 Contract clause.

1817.7005 Acquisitions with Civilian Agencies.

1817.7005-1 Authorization and policy.

1817.7005-2 NASA-Interagency Purchase Request and acceptance.

1817.7005-3 Contract clause.

**SUBPART [1817.71](#OLE_LINK71) EXCHANGE OR SALE OF** **PERSONAL
PROPERTY**

1817.7101 Policy.

**SUBPART [1817.73](#OLE_LINK73) 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** []{#OLE_LINK1 .anchor}**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)**](http://www.arnet.gov/far/current/html/Subpart_17_1.html#1046552)
is met by the proposed use of multiyear contracting.

**Subpart** []{#OLE_LINK2 .anchor}**1817.2\--Options**

**1817.200 Scope of subpart.**

**[FAR Subpart
17.2](http://www.arnet.gov/far/current/html/Subpart_17_2.html#1046478)**
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 and other procurement award
instruments. This includes agreements (e.g. basic ordering agreements,
blanket purchase agreements), interagency acquisitions, and orders
placed under agreements or awarded under a Federal Supply Schedule or
other indefinite delivery/indefinite quantity contracts awarded by other
agencies. See 1816.505-71 for limitations on the ordering period of task
and delivery order contracts.

**(ii)** When the performance period exceeds 5 years (exclusive of
options), the program/project office and the contracting officer shall
review the requirement at the mid-point of the performance period to
ensure that the products or services continue to fulfill NASA's mission
needs and that the procurement award instrument continues to provide the
best means of satisfying the requirement.

**(iii)** 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. The
justification shall discuss planned future assessment of continued
performance either prior to exercise of options or at the mid-term of a
basic contract with no options. Evidence shall also be included showing
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.**

(c)(2) In addition to determining the option fulfills an existing need,
the contracting officer shall determine that there is no change in the
scope of the option requirements.

\(f\) 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.

**1817.207-70 Analysis to support exercise of options.**

\(a\) The contracting officer's determination that exercise of the
option is the most advantageous method of fulfilling the requirement
shall be based on input and information from the requiring organization.
The contracting officer and the requiring organization shall ensure that
analysis sufficient to support the determination that option exercise is
the most advantageous method is completed in advance of providing the
notice to the contractor required by FAR 17.207(a). Sufficient time
shall remain in the performance period to allow the acquisition team to
pursue appropriate alternative approaches with minimal impact to the
program or project in terms of technical, cost, or schedule risk should
the analysis conclude that the best programmatic path is not exercising
the option.

\(b\) The analysis required to support the option exercise determination
must include consideration of other factors in addition to price. In
addition to the other factors contained in FAR 17.207(e), the
determination to exercise the option should include, but is not limited
to, consideration of \--

\(1\) The contractor's performance in satisfying contract requirements,
for example, receiving positive performance ratings (see subpart
1842.15) and the contractor's level of success in implementing and
maintaining small business programs (including mentoring arrangements),
which were evaluated as part of the source selection process and
incorporated into the awarded contract; and

\(2\) The results of market research activities to identify any
technical, engineering or scientific advances that offer programmatic
benefits or performance improvements beyond those that are contractually
available under the option to be exercised.

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

(c)(3) The contracting officer shall insert a provision substantially
the same as [**FAR
52.217-5**](http://www.arnet.gov/far/current/html/52_217_221.html#1046520)
in cost reimbursement contracts when the other conditions of [**FAR
17.208(c)**](http://www.arnet.gov/far/current/html/Subpart_17_2.html#1046550)
are met.

**Subpart** []{#OLE_LINK4 .anchor}**1817.4\--Leader Company
Contracting**

**1817.401 General.**

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

**Subpart** []{#OLE_LINK5 .anchor}**1817.5\--Interagency Acquisitions
Under the Economy Act**

**1817.500 Scope of subpart.**

\(b\) See 1817.70.

**Subpart** []{#OLE_LINK70 .anchor}**1817.70 --Interagency
Acquisitions**

**1817.7000 Scope of subpart.**

This subpart contains policies and procedures for the acquisition of
supplies or services by NASA from or through Military Departments (see
1817.7004) and Civilian Agencies (see 1817.7005).

**1817.7001 Authorization and policy.**

\(a\) The National Aeronautics and Space Act of 1958 (42 U.S.C. 2473 et
seq.) applies to NASA interagency acquisitions except those acquisitions
for the NASA Office of Inspector General acquired under the authority of
the Inspector General Act of 1978 (5 U.S.C. APPENDIX Sec.6(a)(9)). NASA
has elected to conform its implementation of the National Aeronautics
and Space Act of 1958 and the Inspector General Act of 1978 to the
requirements of the Economy Act (see FAR 17.5).

\(b\) Individual orders or successive non-competitive interagency orders
for the same requirement with the same servicing agency shall not exceed
five years.

\(c\) Requests for deviation from the five year limitation in paragraph
(b) of this section shall require the approval of the Center Director if
the estimated value of the order is \$5 million or less, or the
Assistant Administrator for Procurement (Program Operations Division) if
the estimated value of the order exceeds \$5 million. Requests for
deviation shall address:

\(1\) Why more than five years is required;

\(2\) Why the work must be performed by the same servicing agency; and

\(3\) How long beyond the current order the requirement is expected to
continue.

1817.7002 Determinations and findings requirements.

\(a\) Interagency acquisitions shall be supported by a Determination and
Finding (D&F) equivalent to that required for Economy Act acquisitions
(see FAR 17.503). This requirement applies to all purchases of goods or
services under contracts entered into or administered by agencies other
than NASA including the Military Departments and Civilian Agencies. The
Space Act shall be cited as authority for all NASA interagency
acquisitions except that the Inspector General Act shall be cited as the
authority for interagency acquisitions for the NASA Office of Inspector
General.

\(b\) To satisfy the D&F requirement identified in FAR 17.503(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.

\(c\) In addition to the requirements in FAR 17.503, the D&F must
identify the period of performance and whether the acquisition is a
non-competitive follow-on for the same services from the same servicing
agency. (See 1817.7001(b).)

\(d\) A D&F is required for each individual contract action (see FAR
1.702) and any increase permitted by options (see FAR 17.2).

\(e\) The determination described in paragraph (a) of this section is
not required for contracts awarded under the Space Act to Government
agencies pursuant to a Broad Agency Announcement when a review of the
acquisition records would make it obvious that the award is not being
used as a method of circumventing regulatory or statutory requirements,
particularly FAR Part 6, Competition Requirements (e.g., when a
significant number and value of awards made under the BAA are made to
entities other than Government agencies).

\(f\) All D&Fs for a servicing agency not covered by the FAR shall be
approved by the Assistant Administrator for Procurement.

\(g\) Each D&F, including class D&Fs shall be reviewed by legal (see NFS
1801.770).

1817.7003 Ordering procedures.

To satisfy the ordering procedures in FAR 17.504(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.

**1817.7004 Acquisitions with Military Departments**

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

**1817.7004-1 Authorization** **and** **policy.**

\(a\) NASA is authorized by the [**National Aeronautics and Space Act of
1958**](http://www.hq.nasa.gov/ogc/spaceact.html) (42 U.S.C. 2473 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.

**1817.7004-2 NASA-Interagency** **Purchase** **Request** **and**
**acceptance.**

\(a\) The NASA-Interagency 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-Interagency 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](http://www.hq.nasa.gov/office/procurement/regs/1804.htm#P318_24503).
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 1817.7003.

\(c\) To obtain materials from the Air Force Missile Procurement Fund,
the contracting officer shall follow the procedures of
[**1808.003-72**](http://www.hq.nasa.gov/office/procurement/regs/1808.htm#1808.002-72).

**1817.7004-3 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-Interagency 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-Interagency Purchase
Request number and the item number.

\(c\) Acceptance by the Military Department is not required for
NASA-Interagency 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.

**1817.7004-4 Changes** **in** **estimated** **total** **prices.**

When a Military Department determines that the estimated total price
(Block 7, NASA Form 523) of the items to be acquired for NASA is not
sufficient to cover the required reimbursement or is in excess of the
amount required, a request for an amendment will be forwarded to the
NASA originating office. The request will indicate a specific dollar
amount, rather than a percentage, and will include justification for any
upward adjustment requested. Upon approval of the request, the Cognizant
NASA contracting office shall forward to the DOD contracting activity an
amendment to the NASA-Interagency Purchase Request.

**1817.7004-5 Payments.**

Except when agreements provide that reimbursement is not required,
payments to the Military Departments shall be made by NASA office
designated in block 9 of the NASA-Interagency Purchase Request upon
receipt of Standard Form 1080. Billings will be supported in the same
manner as billings between Military Departments.

**1817.7004-6 Contract** **clause.**

The contracting officer shall insert the clause at
[1852.217-70](http://www.hq.nasa.gov/office/procurement/regs/5217-25.htm),
Property Administration and Reporting, in any NASA-Interagency Purchase
Request when property will be involved.

**1817.7005 Acquisitions with Civilian Agencies**

This section contains policies and procedures for the acquisition of
supplies or services by NASA from or through Civilian Agencies.

**1817.7005-1 Authorization and policy.**

NASA is authorized by the National Aeronautics and Space Act of 1958 (42
U.S.C. 2473 et seq.) to acquire supplies or services of Civilian
Agencies, with their consent and with or without reimbursement on the
basis of mutual agreement with Civilian Agencies. Contracting Officer
shall complete and execute a Determination and Finding (D&F) before
placing an order for supplies or services with another Government agency
in accordance with NFS 1817.70.

**1817.7005-2 NASA-Interagency Purchase Request (NF-523) and
Acceptance.**

\(a\) The NASA-Interagency Purchase Request (NF-523) shall be used by
all NASA Contracting Offices for requesting acquisition of supplies or
services from all activities of Civilian Agencies under the National
Aeronautics and Space Act of 1958 (42 U.S.C. 2473 et seq.). Individual
NF-523's shall be prepared in accordance with the instructions contained
in the NF-523 and shall be numbered in accordance with Subpart NFS
1804.71.

\(b\) Include a provision for ordering procedures in accordance with
1817.7003.

\(c\) Include a provision for acceptance by Civilian Agencies, such as:
the servicing agency shall provide acceptance of this order no later
than 30 days after receipt of the order. The acceptance shall be sent
to: Insert NASA installation, office code, and address. The acceptance
shall cite the order number and have a typed name, title, and signature
of the accepting official, including address, phone number, email
address, and facsimile number.

\(d\) Include a provision and instructions for submission of
invoices/billing and payments to be made by Civilian Agencies. Identify
the address of the Agency location for the servicing agency to submit
invoices to, provide detailed instructions for transmitting the funds,
and whether the servicing agency shall submit invoices via the online
Intra-Governmental Payment and Collection (IPAC) System or SF1080/SF1081
or equivalent form to be utilized. Information about IPAC is available
at http://fms.treas.gov/goals/ipac/index.html.

\(e\) Include provisions for contract administration, property
accountability, and reporting requirements (if property is provided to
the Civilian servicing agency or will be acquired and requires
reporting). Complete contract administration requirements and contract
audit responsibilities appropriate for the type of contract and scope of
work on all interagency orders. The requiring activity should also
provide provisions for any special contract terms or other applicable
requirements for funding. This includes information such as special
funds tracking and reporting requirements, additional contract
administration requirements, special delivery or packaging instructions,
a copy of the executed determination, and any other supporting
documents;

\(f\) Include a provision for data rights, patent rights, and reportable
new technology, if applicable;

\(g\) Identify the technical representative and identify roles,
responsibilities, and limitations;

\(h\) Identify the scope of work/deliverables. Include a complete
description of the supply or service to be delivered and include
reference to any proposal received from the servicing civilian agency;

\(i\) Cite the Authority. Cite the National Aeronautics and Space Act of
1958 (42 U.S.C. 2473 et seq.) as the authority unless the order is for
the NASA Office of Inspector General (See NFS 1817.7001);

\(j\) Amount of the Order. Include funding (incremental or fully-funded)
amount and accounting and appropriation data (i.e. procurement request
number).

**1817.7005-3 Contract clause**.

The contracting officer shall insert the clause at
[**1852.217-70**](http://www.hq.nasa.gov/office/procurement/regs/5217-25.htm),
Property Administration and Reporting, in any NASA-Interagency Purchase
Request when property will be involved.

**Subpart** []{#OLE_LINK71 .anchor}**1817.71\--Exchange or Sale of
Personal Property**

**1817.7101 Policy.**

\(a\) Section 201(c) of the Federal Property and Administrative Services
Act of 1949, 63 Stat. 384, as amended (40 U.S.C. 481(c)), authorizes the
exchange or sale of Government personal property and the application of
the exchange allowance or proceeds from sale to the acquisition of
similar property for replacement purposes. The transaction must be
evidenced in writing.

\(b\) NASA installations and contractors are authorized to conduct
exchange/sale transactions as long as the requirements and restrictions
of [**NPR
4300.1**](http://nodis.hq.nasa.gov/Library/Directives/NASA-WIDE/Procedures/Property_Supply_and_Equipment/N_PG_4300_1A/contents.html)
and the Federal Property Management Regulations, Subchapter H, part
101-46, are followed. In conducting such exchanges/sales, NASA
contractors must obtain the contracting officer\'s prior written
approval and must report the transactions to the cognizant NASA
installation Property Disposal Officer (PDO).

**Subpart** []{#OLE_LINK73 .anchor}**1817.73\--Phased Acquisition**

**1817.7300 Definitions.**

\(a\) **Down-selection.** In a phased acquisition, the process of
selecting contractors for later phases from among the preceding phase
contractors.

\(b\) **Phased Acquisition*.*** An incremental acquisition
implementation comprised of several distinct phases where the
realization of program/project objectives requires a planned, sequential
acquisition of each phase. The phases may be acquired separately, in
combination, or through a down-selection strategy.

\(c\) **Progressive Competition.** A type of down-selection strategy for
a phased acquisition. In this method, a single solicitation is issued
for all phases of the program. The initial phase contracts are awarded,
and the contractors for subsequent phases are expected to be chosen
through a down-selection from among the preceding phase contractors. In
each phase, progressively fewer contracts are awarded until a single
contractor is chosen for the final phase. Normally, all down-selections
are accomplished without issuance of a new, formal solicitation.

**1817.7301 Down-selections in phased acquisitions.**

**1817.7301-1 Pre-solicitation planning.**

\(a\) The rationale for the use of the down-selection technique shall be
thoroughly justified in the acquisition planning requirement. Because
the initial phase solicitation will also lead to subsequent phase
award(s), the decision to use a down-selection strategy must be made
prior to release of the initial solicitation. Accordingly, all phases
must be addressed in the initial acquisition strategy planning and
documented in the acquisition plan or PSM minutes.

\(b\) If there is no direct link between successful performance in the
preceding phase and successful performance in a subsequent phase,
down-selection is inappropriate. In this case, the phases should be
contracted for separately without a down-selection.

\(c\) With one exception, both the initial and subsequent phase(s) of an
acquisition down-selection process are considered to be full and open
competition if the procedures in 1817.7301-4 and 1817.7301-5 (if using
the progressive competition technique) are followed. If only one
contractor successfully completed a given phase and no other offers are
solicited for the subsequent phase, award of the subsequent phase may be
made only if justified by one of the exceptions in [**FAR
6.302**](http://www.acquisition.gov/far/current/html/Subpart 6_3.html#wp1086841)
or one of the exclusions in [**FAR
6.2**](http://www.acquisition.gov/far/current/html/Subpart 6_2.html#wp1086973),
and only after compliance with the synopsis requirements of [**FAR
5.202**](http://www.acquisition.gov/far/current/html/Subpart 5_2.html#wp1107980)
and
[**5.205**](http://www.acquisition.gov/far/current/html/Subpart 5_2.html#wp1107980)
and
[**1804.570-2**](http://www.hq.nasa.gov/office/procurement/regs/1804.htm#P162_8513).

**1817.7301-2 Evaluation factors.**

A separate set of evaluation factors must be developed for each phase in
a down-selection competition. Since these competitive down-selection
strategies anticipate that a preceding phase contractor will be the
subsequent phase contractor, the evaluation factors for initial phase
award must specifically include evaluation of the offerors' abilities to
perform all phases.

**1817.7301-3 Down-selection milestones.**

\(a\) When sufficient programmatic and technical information is
available to all potential offerors, proposal evaluation and source
selection activities need not be delayed until completion of a given
phase. These activities should commence as early as practicable. The
initial phase contracts should be structured to allow for down-selection
at a discrete performance milestone (e.g., a significant design review
or contract completion) of a design maturity sufficient to allow for an
informed selection decision. This will avoid time gaps between phases
and eliminate unnecessary duplication of effort.

\(b\) The appropriate contract structure must reflect program technical
objectives as well as schedule considerations. For example, if a
two-phased acquisition strategy calls for formal completion of initial
phase effort at Preliminary Design Review (PDR), but it is not
financially practical or technically necessary for subsequent phase
award and performance to carry all initial phase contractors through
PDR, the initial phase contracts should be structured with a basic
period of performance through a significant, discrete milestone before
PDR with a priced option for effort from that milestone to PDR. The
down-selection would occur at the earlier milestone, the PDR option
exercised only for the down-selection winner, and the subsequent phase
performance begun at the completion of the PDR option.

**1817.7301-4 Synopsis.**

\(a\) Each phase of a phased acquisition not performed in-house must be
synopsized in accordance with [**FAR
5.201**](http://www.arnet.gov/far/current/html/Subpart_5_2.html#1046480)
and must include all the information required by [**FAR
5.207**](http://www.arnet.gov/far/current/html/Subpart_5_2.html#1046553).
Time gaps between phases should be minimized by early synopsis of
subsequent phase competition. The synopsis for the initial competitive
phase should also state the following:

\(1\) The Government plans to conduct a phased acquisition involving a
competitive down-selection process. (Include a description of the
process and the phases involved).

\(2\) Competitions for identified subsequent phases will build on the
results of previous phases.

\(3\) The award criteria for subsequent phases will include demonstrated
completion of specified previous phase requirements.

\(4\) The Government expects that only the initial phase contractors
will be capable of successfully competing for the subsequent phase(s).
Proposals for the subsequent phase(s) will be requested from these
contractors.

\(5\) The Government intends to issue (or not issue) a new, formal
solicitation(s) for subsequent phase(s). If new solicitations are not
planned, the acquisition must be identified as a \"progressive
competition\" (see 1817.7301-5), and the mechanism for providing
pertinent subsequent phase proposal information (e.g., statements of
work, specifications, proposal preparation instructions, and evaluation
factors for award) must be described.

\(6\) Each subsequent phase of the acquisition will be synopsized in
accordance with FAR 5.201 and 5.203.

\(7\) Notwithstanding the expectation that only the initial phase
contractors will be capable of successfully competing for the subsequent
phase(s), proposals from all responsible sources submitted by the
specified due date will be considered. In order to contend for
subsequent phase awards, however, such prospective offerors must
demonstrate a design maturity equivalent to that of the prior phase
contractors. Failure to fully and completely demonstrate the appropriate
level of design maturity may render the proposal unacceptable with no
further consideration for contract award.

\(b\) In addition to the information in paragraph (a) of this section,
the synopsis for the subsequent phase(s) must identify the current phase
contractors.

**1817.7301-5 Progressive competition.**

\(a\) To streamline the acquisition process, the preferred approach for
NASA phased acquisitions is the \"progressive competition\"
down-selection technique in which new, formal solicitations are not
issued for phases subsequent to the initial phase. Subsequent phase
proposals are requested by less formal means, normally by a letter
accompanied by the appropriate proposal preparation and evaluation
information.

\(b\) When using the progressive competition technique, if a prospective
offeror other than one of the preceding phase contractors responds to
the synopsis for a subsequent phase and indicates an intention to submit
a proposal, the contracting officer shall provide to that offeror all
the material furnished to the preceding phase contractors necessary to
submit a proposal. This information includes the preceding phase
solicitation, contracts, and system performance and design requirements,
as well as all proposal preparation instructions and evaluation factors.
In addition, the prospective offeror must be advised of all requirements
necessary for demonstration of a design maturity equivalent to that of
the preceding phase contractors.

\(c\) A key feature of the progressive competition technique is that a
formal solicitation is normally not required. However, when the
Government requirements or evaluation procedures change so significantly
after release of the initial phase solicitation that a substantial
portion of the information provided in the initial phase synopsis,
solicitation, or contracts is no longer valid, a new solicitation shall
be issued for the next phase.

\(d\) Subsequent phase proposals should be requested by a letter
including the following:

\(1\) A specified due date for the proposals along with a statement that
the late proposal information in paragraph (c)(3) of [**FAR
52.215-1**](http://www.arnet.gov/far/current/html/52_215.html#1063712),
Instructions to Offerors \-- Competitive Acquisition, applies to the due
date.

\(2\) Complete instructions for proposal preparation, including page
limitations, if any.

\(3\) Final evaluation factors.

\(4\) Any statement of work, specifications, or other contract
requirements that have changed since the initial solicitation.

\(5\) All required clause changes applicable to new work effective since
the preceding phase award.

\(6\) Any representations or certifications, if required.

\(7\) Any other required contract updates (e.g., small and small
disadvantaged business goals).

\(e\) Certain factors may clearly dictate that the progressive
competition technique should not be used. For example, if it is likely
that NASA may introduce a design concept independent of those explored
by the preceding phase contractors, it is also likely that a new, formal
solicitation is necessary for the subsequent phase and all potential
offerors should be solicited. In this circumstance, progressive
competition is inappropriate.

**1817.7302 Contract clauses.**

\(a\) The contracting officer shall insert the clause at
[**1852.217-71**](http://www.hq.nasa.gov/office/procurement/regs/5217-25.htm#1852.217-71%231852.217-71),
Phased Acquisition Using Down-Selection Procedures, in solicitations and
contracts for phased acquisitions using down-selection procedures other
than the progressive competition technique. The clause may be modified
as appropriate if the acquisition has more than two phases. The clause
shall be included in the solicitation for each phase and in all
contracts except that for the final phase.

\(b\) The contracting officer shall insert the clause at
[**1852.217-72**](http://www.hq.nasa.gov/office/procurement/regs/5217-25.htm#1852.217-72%231852.217-72),
Phased Acquisition Using Progressive Competition Down-Selection
Procedures, in solicitations and contracts for phased acquisitions using
the progressive competition technique. The clause may be modified as
appropriate if the acquisition has more than two phases. The clause
shall be included in the initial phase solicitation and all contracts
except that for the final phase.