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

National Aeronautics and

Space Administration

Washington, DC 20546

##  PN 97-83

### March 20, 2003 

# INTERAGENCY ACQUISITIONS \-- AUTHORITY FOR USE

***BACKGROUND:*** This PN revises the NASA FAR Supplement to specify
that the Space Act (42 U.S.C. 2473) is the authority for all NASA
interagency acquisitions except those acquired under the authority of
the Inspector General Act of 1978 for the NASA Office of the Inspector
General. This rule further specifies that the requirements of the
Economy Act will be applied to these acquisitions as a matter of policy.
These changes will ensure greater clarity regarding the source and
application of NASA's authority for interagency acquisitions.

***ACQUISITIONS AFFECTED BY CHANGES:*** All NASA interagency
acquisitions.

***ACTION REQUIRED BY CONTRACTING OFFICERS:*** Effective March 20, 2003,
cite the Space Act (42 U.S.C. 2473) as the authority on all interagency
agreements and the corresponding determination and findings except those
acquired under the authority of the Inspector General Act of 1978.
Interagency acquisitions for the NASA Office of Inspector General must
cite the authority of the Inspector General Act of 1978.

***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 17:1, 17:2,
17:3, 17:4, 17:5, and 17:6.

***TYPE OF RULE AND PUBLICATION DATE:*** The PN was published as a final
rule in the Federal Register (68 FR 13634) on March 20, 2003.

***HEADQUARTERS CONTACT:*** Lou Becker, Code HK, (202) 358-4593, email:
louis.g.becker@nasa.gov.

R. Scott Thompson

Director, Contract Management Division

Enclosures

**PART** **1817**

## SPECIAL CONTRACTING METHODS

**TABLE OF CONTENTS**

**SUBPART 1817.1 MULTIYEAR CONTRACTING**

1817.105 Policy.

1817.105-1 Uses.

**SUBPART 1817.2 OPTIONS**

1817.200 Scope of subpart.

1817.203 Solicitations.

1817.204 Contracts.

1817.206 Evaluation.

1817.207 Exercise of options.

1817.208 Solicitation provisions and contract clauses.

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

1817.401 General.

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

1817.500 Scope of subpart.

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

1817.7000 Scope of subpart.

1817.7001 Authorization and policy.

1817.7002 NASA-Defense Purchase Request and acceptance.

1817.7002-1 Acceptance by Military Department.

1817.7002-2 Changes in estimated total prices.

1817.7002-3 Payments.

1817.7002-4 Contract clause.

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

1817.7101 Policy.

**SUBPART 1817.72 INTERAGENCY TRANSACTIONS**

1817.7201 Policy.

1817.7202 Determinations and findings requirements.

1817.7203 Ordering procedures.

**SUBPART 1817.73 PHASED ACQUISITION**

1817.7300 Definitions.

1817.7301 Down-selections in phased acquisitions.

1817.7301-1 Pre-solicitation planning.

1817.7301-2 Evaluation factors.

1817.7301-3 Down-selection milestones.

1817.7301-4 Synopsis.

1817.7301-5 Progressive competition.

1817.7302 Contract clauses.

**PART** **1817**

**SPECIAL CONTRACTING METHODS**

**Subpart 1817.1\--Multiyear Contracting**

**1817.105 Policy.**

**1817.105-1 Uses.**

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

**Subpart** **1817.2\--Options**

**1817.200 Scope of subpart.**

FAR Subpart 17.2 applies to all NASA contracts.

**1817.203 Solicitations.**

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

**1817.204 Contracts.**

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

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

**1817.206 Evaluation.**

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

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

**1817.207 Exercise of options.**

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

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

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

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

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

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

**1817.401 General.**

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

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

**1817.500** **Scope of** **subpart.**

\(b\) See 1817.72.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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 Defense Purchase Request.

**1817.7002-3 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-Defense Purchase Request upon receipt
of Standard Form 1080. Billings will be supported in the same manner as
billings between Military Departments.

**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.**

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).

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.

\(c\) 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).

\(d\) 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.