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Procurement Notice

National Aeronautics and

Space Administration

Washington, DC 20546

**PN 04-16**

**August 15, 2006**

**ACQUISITION PLANNING CHANGES: PROCUREMENT STRATEGY MEETING AND MASTER
BUY PLAN SUBMISSION**

***BACKGROUND:***  This PN revises the NASA FAR Supplement (NFS) to make
two changes related to acquisition planning.

1\. The Acquisition Strategy Meeting (ASM) described in NFS 1807.170 is
re-titled Procurement Strategy Meeting (PSM) as part of a revision in
the NASA planning process into three significant and discrete events:
Acquisition Strategic Planning (ASP), Acquisition Strategy Meeting
(ASM), and the PSM.  The ASP and the ASM occur during the program and
project approval and requirements development processes. The ASP is used
to approve programs and significant projects for execution.  The ASM is
program or project specific, more detailed than the ASP, and is
conducted in accordance with NPR 7120.5.  The PSM is project or contract
specific, and is developed by the project manager, supported by the
contracting officer, and approved as prescribed in the NFS.

2\. The Master Buy Plan threshold is lowered to \$10M for acquisitions
when estimated Exploration Systems Mission Directorate (ESMD) or Space
Operations Mission Directorate (SOMD) funding, or the combined estimated
ESMD/SOMD funding, exceeds 50 percent of the total value of the
acquisition. Centers must enter the acquisition into the Master Buy
Database (electronically) as soon as information becomes available on
the acquisition.

***ACQUISITIONS AFFECTED BY CHANGES:***

**Change 1*.*** All new programs and projects that require a PSM.

**Change 2*.*** All new acquisitions that exceed \$10 million when
estimated ESMD or SOMD funding, or the combined estimated ESMD/SOMD
funding, exceeds 50 percent of the total value of the acquisition.

***ACTIONS REQUIRED BY CONTRACTING OFFICERS:*** Comply with the
acquisition planning changes specified in this PN.

***CLAUSE CHANGES:***  None.

***PARTS AFFECTED:***  Parts 1807, 1815, 1817, and 1819.

***REPLACEMENT PAGES:***  You may use the enclosed pages to replace Part
1807, 15:7, 15:8, 17:9, 17:10, 19:3, and 19:4 of the NFS.

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

***HEADQUARTERS CONTACT:***  Ken Sateriale, Office of Procurement,
Contract Management Division, (202) 358-0491, email:
<ken.sateriale@nasa.gov>.

 

Tom Luedtke

Assistant Administrator for Procurement

Enclosures

 

**DISTRIBUTION:**

**  PN List**

PART 1807

# ACQUISITION PLANNING

# TABLE OF CONTENTS

**SUBPART 1807.1 ACQUISITION PLANS**

1807.103 Agency-head responsibilities.

1807.104 General procedures.

1807.105 Contents of written acquisition plans.

1807.107 Additional requirements for acquisitions involving bundling.

1807.107-70 Orders against Federal Supply Schedule contracts or other

indefinite-delivery contracts awarded by another agency.

1807.170 Procurement Strategy Meeting (PSM).

**SUBPART 1807.2 PLANNING FOR THE** **PURCHASE OF SUPPLIES IN**

#  ECONOMIC QUANTITIES

1807.204 Responsibilities of contracting officers.

**SUBPART 1807.5 INHERENTLY GOVERNMENTAL FUNCTIONS**

1807.503 Policy.

**SUBPART 1807.70 CONSOLIDATED CONTRACTING**

1807.7000 General.

**SUBPART 1807.71 MASTER BUY PLAN**

1807.7100 General.

1807.7101 Applicability.

1807.7102 Submission, selection, and notification procedures.

1807.7102-1 Submission of Master Buy Plan.

1807.7102-2 Submission of amendments to the Master Buy Plan.

1807.7102-3 Selection and notification procedures.

1807.7103 Format of Master Buy Plan.

**SUBPART 1807.72 ACQUISITION FORECASTING**

1807.7200 Policy.

1807.7201 Definitions.

1807.7202 Responsibilities.

1807.7203 Forecast data

.

## PART 1807

# ACQUISITION PLANNING

## Subpart 1807.1\--Acquisition Plans

**1807.103 Agency-head responsibilities.**

(d)**(i)** Except as provided in paragraph (d)(iii) of this section,
acquisition plans shall be prepared according to the following:

**(A)** For acquisitions requiring Headquarters approval, by an
Procurement Strategy Meeting (PSM) (see 1807.170);

**(B)** For acquisitions not requiring Headquarters approval and
expected to exceed \$10 million, by installation-approved PSMs or
written acquisition plans; and,

**(C)** For acquisitions not expected to exceed \$10 million, in
accordance with installation procedures.

**(ii)** The estimated dollar amounts shall include all options and
later phases of the same program or project.

**(iii)** Acquisition plans are not required for the following
acquisitions:

**(A)** Architect-engineering services;

**(B)** Broad agency announcements (see 1835.016) or unsolicited
proposals;

**(C)** Basic research from nonprofit organizations;

**(D)** Utility services available from only one source;

**(E)** From or through other Government agencies except when the value
of the acquisition meets the Master Buy Plan threshold (see 1807.7101);
or

**(F)** Industrial facilities required in support of related contracts.

**(iv)** Acquisition plans shall be approved before soliciting
proposals.

**(v)** Approval of an acquisition plan does not constitute approval of
any special conditions, or special clauses that may be required unless
the plan so specifies, and the individual having approval authority is a
signatory of the plan. All required deviations shall be approved through
the procedures described in FAR 1.4 and 1801.4.

**(vi)** A single acquisition plan may be used for all phases of a
phased acquisition provided the plan fully addresses each phase, and no
significant changes occur after plan approval to invalidate the
description of the phases. If such significant changes do occur, the
plan shall be amended and approved at the same level as the original
plan.

\(e\) Acquisition plans should be prepared on a program or system basis
when practical. In such cases, the plan should fully address all
component acquisitions of the program or system.

**1807.104 General procedures.**

\(a\) The acquisition planning team shall obtain input from the center
offices responsible for matters of safety and mission assurance,
occupational health, environmental protection, information technology,
export control, and security to ensure that all NASA acquisitions are
structured in accordance with NASA policy in these areas. As part of
this process, the team shall recommend any appropriate solicitation or
contract requirements for implementation of safety, occupational health,
environmental, information technology, export control, and security
concerns. (See NPR 8715.3, NASA Safety Manual; NPR 7120.5, NASA Program
and Project Management Processes and Requirements; NPR 2810.1, Security
of Information Technology, and NPR 1620.1, Security Procedural
Requirements, all available at http://nodis3.gsfc.nasa.gov/).

**1807.105 Contents of written acquisition plans.**

Acquisition plans shall address each applicable topic listed in FAR
7.105, as supplemented by this section. Plans shall be structured by
subject heading using each italicized topic heading in the same sequence
as presented in the FAR. Subheadings should be used when appropriate
(e.g., the separate items under contracting considerations at
7.105(b)(4)). Topics not applicable to a given acquisition (e.g.,
design-to-cost and should-cost are not compatible with service
acquisitions), should be marked N/A. The requirements in FAR 7.105
regarding performance-based acquisition methods shall not be limited to
acquisition plans for service contracts.

(a)(1) Describe in nontechnical terms the supplies or services to be
acquired. Include quantities.

(a)(2) NPR 7120.5 shall be an integral part of acquisition planning for
programs and projects subject to its requirements. If the NPR does not
apply, the acquisition plan shall clearly state that fact. If the NPR
does apply, specify whether all required NPR 7120.5 documentation is
current and approved. If not, describe the approach for obtaining
approval or the authority to proceed without approval before release of
draft or final solicitations. For programs and projects under the NPR,
all draft or final solicitations subject to, or directly or
substantially in support of, those programs or projects shall clearly
identify the program or project of which they are part.

(a)(3) Identify the estimated cost and describe the estimating
methodology.

(a)(5) Specify the delivery or performance period requirements
separately by the basic contract, each option, and the total. Provide
supporting rationale, which describes the relationship between the
technical requirements and the proposed period of performance, including
the basis for the decision regarding duration and the appropriateness of
the inclusion of options.

(a)(7) Discuss project/program risks (see NPR 7120.5, NASA Program and
Project Management Processes and Requirements). In addition to
technical, schedule, and cost risks, the discussion shall include such
considerations as: safety and security (including personnel, information
technology, and facilities/property); the need to involve foreign
sources (contractor and/or governmental), and risks of unauthorized
technology transfer (see NPD 2110.1E and Export Control Program
(http://www.hq.nasa.gov/office/oer/nasaecp/Welcome.html)); and resource
risk, including the necessary level and expertise of NASA personnel
resources available to manage the project/program. For each area of risk
identified, the discussion shall include a quantification of the
relative magnitude (e.g., high, medium, low) together with the specific
actions taken to structure the acquisition approach to manage the risks
throughout the acquisition process. For example, this discussion would
identify those areas that have safety risk, discuss how safety is
addressed in contract requirements and evaluated in the source
selection, and how it will be managed and incentivized during contract
performance. Decisions to accept, mitigate, track, and/or research risk
factors shall be identified and documented as part of acquisition
planning.

(a)(8) Streamlining applies to all NASA acquisitions. Describe all
planned streamlining procedures.

(b)(3) Discuss the source selection approach (trade-off, lowest price
technically acceptable, combination of approaches) and the rating method
(numerical scoring, acceptable/unacceptable, adjectival) to be used, how
it will be used and why it is expected to result in the selection of the
best value to NASA. Address how cost realism will be evaluated.

(b)(4)**(A)** If an incentive contract is planned, describe the planned
incentive(s) and the anticipated effects.

**(B)** Describe subcontracting issues, including all applicable
subcontracting goals. (See FAR Part 19 and Part 1819.)

(b)(5)**(A)** Identify the estimated cost separately by the basic
contract, each option and total amount.

**(B)** Identify the funding by fiscal year and NASA Structure
Management project number.

**(C)** Discuss planned approaches to eliminate funding shortfalls (vs.
the estimated cost).

(b)(6) Identify the type of work statement/specification planned.
Specifically address the applicability of performance work statements
and the availability of commercial sources for the supplies/services.

(b)(10) Address contract management issues, including **\--**

**(A)** Planned delegations of administrative functions; and

**(B)** When contract changes are anticipated, the plan to manage such
changes and the specific measures that will be taken to minimize the
issuance of undefinitized contract actions.

\(b\) (20) If the period between release of solicitation to contract
award is more than 120 calendar days (180 days for formal SEB
competitions), explain why that goal cannot be met.

**1807.107 Additional requirements for acquisitions involving
bundling.**

\(c\) Requests for approval of proposed bundlings that do not meet the
thresholds in FAR 7.107(b) must be sent to the Headquarters Office of
Procurement (Code HS).

\(e\) The substantial bundling documentation requirements applies to
each proposed NASA bundling expected to exceed \$5 million or more. The
contracting officer must forward the documentation along with the
measurable benefits analysis required by FAR 7.107(b) to the
Headquarters Office of Procurement (Code HS) in sufficient time to allow
a minimum of 10 days for review.

**1807.107-70 Orders against Federal Supply Schedule contracts or other
indefinite-delivery contracts awarded by another agency.**

The FAR and NFS requirements for justification, review, and approval of
bundling of contract requirements also apply to an order from a Federal
Supply Schedule contract or other indefinite-delivery contract awarded
by another agency if the requirements consolidated under the order meet
the definition of \"bundling\" at FAR 2.101.

**1807.170 Procurement Strategy Meeting (PSM).**

\(a\) The PSM is an acquisition plan conducted through a meeting
attended by all interested NASA offices. The online Guide for Successful
Headquarters Procurement Strategy Meetings (PSMs) can be found at the
following URL: http://ec.msfc.nasa.gov/hq/library/PSMs.html. At the
meeting, the acquisition plan topics and structure specified in 1807.105
are presented in briefing format, and formal written minutes prepared to
summarize the decisions, actions, and conclusions of the PSM members.
The approved minutes, along with the briefing charts, shall be included
in the contract file to document completion of the acquisition plan
required by 1807.103.

\(b\) The PSM 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 PSMs will be chaired by the Assistant Administrator
for Procurement or designee. The Headquarters Office of Procurement
(Program Operations Division) will prepare the minutes of Headquarters
PSMs and distribute them to all attendees for review prior to approval
by the PSM chairperson.

\(d\) For field installation PSMs, 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 1807.5\--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.

\(4\) All new acquisitions excluding supplemental agreements, where the
total value is expected to exceed \$10,000,000, and the estimated
Exploration Systems Mission Directorate (ESMD) or Space Operations
Mission Directorate (SOMD) funding, or the combined estimated ESMD/SOMD
funding, exceeds 50 percent of the total value of the acquisition.

\(5\) 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 (Program Operations Division)
a Master Buy Plan (electronically) 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.

\(c\) Plans shall be prepared in accordance with 1807.7103 and shall
identify the individual acquisition documents involved for every
acquisition listed. Acquisition documents that may require Headquarters
approval will be held in abeyance until receipt of the notification
required by 1807.7102-3. This is not to preclude the planning for or
initiation of such documents up to that point where Headquarters
approval may be required.

**1807.7102-2 Submission of amendments to** **the Master Buy Plan.**

\(a\) Acquisitions identified by installations after submission of their
Master Buy Plan and meeting the criteria in 1807.7102-1(a) shall be
submitted to Headquarters in accordance with 1807.7103 and identified as
an amendment to the fiscal year Master Buy Plan submission.

\(b\) Master Buy Plan submissions should not be accomplished after the
fact. Amendments shall be submitted sufficiently in advance of contract
award date to allow Headquarters to select those acquisition documents
that will be subject to Headquarters review and approval without
creating an unacceptable delay in contract placement.

\(c\) When timely submittal is not possible, the installation shall
provide with the amendment a narrative explaining the circumstances
leading to the late submittal. A Master Buy Plan submission for a
contract change order expected to meet the criteria in 1807.7101 shall
be submitted to Headquarters immediately upon issuance of the change
order.

**1807.7102-3 Selection and notification** **procedures.**

\(a\) The Headquarters Office of Procurement (Program Operations
Division) shall select acquisition documents from the Master Buy Plan
and amendments to Master Buy Plans to receive Headquarters review and
approval and shall designate source selection officials.

\(b\) When, subsequent to document selection or delegation, an
acquisition is changed (for example, increase or decrease in dollar
amount, change in requirement), canceled, superseded, deferred, or
becomes no longer subject to the Master Buy Plan procedures in
accordance with the criteria in 1807.7101, the installation shall
immediately notify the Program Operations Division, giving the reasons.
The Program Operations Division shall notify the installation\'s
procurement office in writing of any further action that may be
required.

\(c\) Acquisition documents not selected for Headquarters review will be
subject to after-the-fact reviews by Headquarters during normal
procurement management surveys or other special reviews. Acquisition
delegations may subsequently be rescinded if a Headquarters review is
deemed appropriate.

**1807.7103 Format of Master Buy Plan.**

\(a\) In accordance with the requirements of 1807.7102-1 and
1807.7102-2, installations must prepare Master Buy Plans and amendments
to Master Buy Plans in accordance with the Master Buy Plan Database
(MBPD) instructions at
http://www.hq.nasa.gov/office/procurement/regs/Table1807.doc and submit
them in accordance with the MBPD User Manual Instructions listed at
http://ec.msfc.nasa.gov/hq/library/masterbuyplan.pdf.

\(b\) For those acquisitions subject to the MBP pursuant to
1807.7101(c)(4), installations must include the following information in
the MBP Record Fields:

HQ Funding Org: "HSFTP"

Status Schedule: SOMD Funded\_\_\_\_\_ percent; ESMD
Funded\_\_\_\_percent

Status Schedule: HCA Authority Recommendation: ESMD, SOMD or Center

In coordination with the Mission Directorates and the cognizant Center,
the HCA authority for the new procurement will be determined and
recorded in the MBP database by the Office of Procurement.

## 

## Subpart 1807.72\--Acquisition Forecasting

**1807.7200  Policy.**

\(a\) As required by the Business Opportunity Development Reform Act of
1988, it is NASA

policy to --

\(1\) Prepare an annual forecast and semiannual update of expected
contract opportunities or classes of contract opportunities for each
fiscal year;

\(2\) Include in the forecast contract opportunities that small business
concerns, including those owned and controlled by socially and
economically disadvantaged individuals, may be capable of performing;
and

\(3\) Make available such forecasts to the public.

\(b\) The annual forecast and semiannual update are available on the
NASA Acquisition Internet

Service (http://www.hq.nasa.gov/office/procurement/).

**1807.7201  Definitions.**

**\"Class of contracts\"** means a grouping of acquisitions, either by
dollar value or by the nature of supplies and services to be acquired.

**\"Contract opportunity\"** means planned new contract awards exceeding
\$25,000.

**1807.7202  Responsibilities.**

\(a\) NASA Procurement Officers shall post the data required by
1807.7203 directly to the NASA Acquisition Internet Service not later
than October 1 for the annual forecast and April 15 for the semiannual
update.

\(b\) The Program Operations Division will manage policy and monitor
compliance with the NASA Acquisition Forecast process.

**1807.7203  Forecast data.**

\(a\) The annual forecast shall contain \--

\(1\) Summary historical data (based on information provided by the
Headquarters Office of Procurement (Analysis Division and Program
Operations Division) on the class of contract opportunities below the
simplified acquisition threshold;

\(2\) Identification of all known contract opportunities in excess of
the simplified acquisition threshold. Each such action should be
identified as one of the three broad categories of acquisition \--
Research and Development, Services, or Supplies and Equipment and shall
include the following information:

\(i\) A brief description not to exceed ten typed lines;

\(ii\) Approximate dollar value within the following dollar ranges:
\$100,000 to \$1,000,000; \$1,000,000 to \$5,000,000; and over
\$5,000,000;

\(iii\) Anticipated time (by fiscal year quarter) for the issuance of
the solicitation;

\(iv\) Identification if it is reserved for performance by small
business concerns including those owned and controlled by socially and
economically disadvantaged individuals;

\(v\) Identification as competitive or noncompetitive; and

\(vi\) Identification and telephone number of a center point of contact.

\(b\) The semiannual report shall be an update of the data provided by
the annual forecast. This update should provide information on new
requirements not previously reported and on changes in data related to
actions previously identified.

**1815.300-70 Applicability of subpart.**

(a)(1) Except as indicated in paragraph (b) of this section, NASA
competitive negotiated acquisitions shall be conducted as follows:

\(i\) Acquisitions of \$50 million or more \-- in accordance with FAR
15. 3 and this subpart.

\(ii\) Other acquisitions \-- in accordance with FAR 15.3 and this
subpart except section 1815.370 and use of a mission suitability factor
and numerical scoring is optional.

\(2\) Estimated dollar values of acquisitions shall include the values
of multiple awards, options, and later phases of the same project.

\(b\) FAR 15. 3 and this subpart are not applicable to acquisitions
conducted under the following procedures:

\(1\) Announcements of Opportunity (see Part 1872).

\(2\) NASA Research Announcements (see 1835.016-71).

\(3\) The Small Business Innovative Research (SBIR) program and the
Small Business Technology Transfer (STTR) pilot program under the
authority of the Small Business Act (15 U.S.C. 638).

\(4\) Architect and Engineering (A&E) services (see FAR 36.6 and
1836.6).

**1815.303 Responsibilities.**

\(a\) The SSA shall be established at the lowest reasonable level for
each acquisition. Notwithstanding the FAR designation of the contracting
officer as SSA, the SSA for center acquisitions shall be established in
accordance with center procedures. For acquisitions designated

as Headquarters selections, the SSA will be identified as part of the
Master Buy Plan process (see 1807.71).

(b)**(i)** The source selection authority (SSA) is the Agency official
responsible for proper and efficient conduct of the source selection
process and for making the final source selection decision. The SSA has
the following responsibilities in addition to those listed in the FAR:

**(A)** Approve the source selection approach, rating method, evaluation
factors, subfactors, the weight of the evaluation factors and subfactors
when used, and any special standards of responsibility (see FAR 9.104-2)
before release of the RFP, or delegate this authority to appropriate
management personnel;

**(B)** Appoint the source selection team. However, when the
Administrator will serve as the SSA, the Official-in-Charge of the
cognizant Headquarters Program Office will appoint the team; and

**(C)** Provide the source selection team with appropriate guidance and
special instructions to conduct the evaluation and selection procedures.

(b)(2) Approval authorities for Acquisition Plans and Procurement
Strategy Meetings are in accordance with 1807.103.

**1815.304 Evaluation factors and significant subfactors.**

(c)(4)**(A)** The extent of participation of small disadvantaged
business (SDB) concerns shall be evaluated as a subfactor under the
Mission Suitability factor. If a Mission Suitability factor is not used,
the SDB participation shall be evaluated as a separate factor or
subfactor, as appropriate.

**(B)** SDB concerns that choose the FAR 19.11 price evaluation
adjustment shall receive the lowest possible score/rating under the FAR
15.304(c)(4) evaluation.

**1815.304-70 NASA evaluation factors.**

\(a\) Typically, NASA establishes three evaluation factors: Mission
Suitability, Cost/Price, and Past Performance. Evaluation factors may be
further defined by subfactors. Evaluation subfactors should be
structured to identify significant discriminators, or \"key swingers\" -
the essential information required to support a source selection
decision. Too many subfactors undermine effective proposal evaluation.
All evaluation subfactors should be clearly defined to avoid overlap and
redundancy.

\(b\) Mission Suitability factor.

\(1\) This factor indicates the merit or excellence of the work to be
performed or product to be delivered. It includes, as appropriate, both
technical and management subfactors. Mission Suitability shall be
numerically weighted and scored on a 1000-point scale. (See
1815.300-70(a)(1)(ii).)

\(2\) The Mission Suitability factor may identify evaluation subfactors
to further define the content of the factor. Each Mission Suitability
subfactor shall be weighted and scored. The adjectival rating
percentages in 1815.305(a)(3)(A) shall be applied to the subfactor
weight to determine the point score. The number of Mission Suitability
subfactors is limited to five. The Mission Suitability evaluation
subfactors and their weights shall be identified in the RFP.

\(3\) For cost reimbursement acquisitions, the Mission Suitability
evaluation shall also include the results of any cost realism analysis.
The RFP shall notify offerors that the realism of proposed costs may
significantly affect their Mission Suitability scores.

\(4\) If the solicitation requires the submission of a Safety and Health
Plan (see 1823.7001(c) and NPR 8715.3, NASA Safety Manual, Appendix H),
safety and health must be a consideration in the evaluation. The Mission
Suitability factor, if used, shall include a subfactor for safety and
health.

\(c\) Cost/Price factor. This factor evaluates the reasonableness and,
if necessary, the cost realism, of proposed costs/prices. The Cost/Price
factor is not numerically weighted or scored.

\(d\) Past Performance factor.

\(1\) This factor indicates the relevant quantitative and qualitative
aspects of each offeror\'s record of performing services or delivering
products similar in size, content, and complexity to the requirements of
the instant acquisition.

\(2\) The RFP shall instruct offerors to submit data (including data
from relevant Federal, State, and local governments and private
contracts) that can be used to evaluate their past performance.
Typically, the RFP will require:

\(i\) A list of contracts similar in size, content, and complexity to
the instant acquisition, showing each contract number, the type of
contract, a brief description of the work, and a point of contact from
the organization placing the contract. Normally, the requested contracts
are limited to those received in the last three years. However, in
acquisitions that require longer periods to demonstrate performance
quality, such as hardware development, the time period should be
tailored accordingly.

\(ii\) The identification and explanation of any cost overruns or
underruns, completion delays, performance problems, and terminations.

\(3\) The contracting officer may start collecting past performance data
before proposal receipt. One method for early evaluation of past
performance is to request offerors to submit their past performance
information in advance of the proposal due date. The RFP could also
include a past performance questionnaire for offerors to send their
previous customers with instructions to return the completed
questionnaire to the Government. Failure of the offeror to

**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 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.

**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 procurement 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, 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**