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

National Aeronautics and

Space Administration

Washington, DC 20546

##  PN 97-88

###  October 6, 2003

# INTERAGENCY ACQUISITION APPROVALS

***BACKGROUND:*** This PN revises the NASA FAR Supplement (NFS) to
establish a five-year limitation on interagency acquisitions, and
requires determinations and findings (D&Fs) for interagency acquisitions
to identify the period of performance and whether the acquisition is for
a non-competitive follow-on for the same requirement with the same
servicing agency.

***ACQUISITIONS AFFECTED BY CHANGES:*** Interagency acquisitions.

***ACTION REQUIRED BY CONTRACTING OFFICERS:*** Whenever an individual or
successive non-competitive interagency orders will exceed five years the
approval of a deviation by either the Center Director or the Assistant
Administrator for Procurement will be required. In addition, D&Fs for
all interagency acquisitions will require the identification of the
period of performance and whether the acquisition is for a
non-competitive follow-on for the same requirement with the same
servicing agency.

***CLAUSE CHANGES:*** This PN makes no changes to clauses or provisions.

***PARTS AFFECTED:*** Changes are made in Part 1817.

***REPLACEMENT PAGES:*** You may use the enclosed pages to replace 17:5
through 17:9.

***TYPE OF RULE AND PUBLICATION DATE:*** The PN was published as a final
rule in the Federal Register (68 FR 57629) on October 6, 2003.

***HEADQUARTERS CONTACT:*** Joseph LeCren HS, (202) 358-0431, email:
jlecren@nasa.gov.

James A. Balinskas

Director, Contract Management Division

Enclosures

**1817.7002-4 Contract** **clause.**

The contracting officer shall insert the clause at 1852.217-70, Property
Administration and Reporting, in any NASA-Defense Purchase Request when
property will be involved.

**Subpart 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 NPG 4300.1 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 1817.72\--Interagency Transactions**

**1817.7201 Policy.**

\(a\) The Space Act (42 U.S.C. 2473) applies to NASA interagency
acquisitions except those for the NASA Office of Inspector General
acquired under the authority of the Inspector General Act of 1978 (5
US.C. Appendix III). NASA has elected to conform its implementation of
the Space Act and the Inspector General Act 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 (Code HS) 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.

1817.7202 Determinations and findings requirements.

\(a\) Interagency acquisitions shall be supported by a Determination and
Finding (D&F) equivalent to that required for Economy Act transactions
(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. 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 1817.7201(b).)

\(d\) 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).

\(e\) All D&F's for a servicing agency not covered by the FAR shall be
approved by the Assistant Administrator for Procurement.

1817.7203 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.

**Subpart 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 ASM 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 or one of
the exclusions in FAR 6.2, and only after compliance with the synopsis
requirements of FAR 5.202 and 5.205 and 1804.570-2.

**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 and must include all the
information required by FAR 5.207. 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,
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,
Phased Acquisition Using Down-Selection Procedures, in solicitations and
contracts for phased acquisitions using down-selection procedures other
than the progressive competition technique described in 1817.7301-5. 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,
Phased Acquisition Using Progressive Competition Down-Selection
Procedures, in solicitations and contracts for phased acquisitions using
the progressive competition technique described in 1817.7301-5. 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.