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

National Aeronautics and

Space Administration

Washington, DC 20546

##  PN 97-101

> **July 27, 2004**

REPRESENTATIONS AND CERTIFICATIONS -- OTHER THAN COMMERCIAL ITEMS AND
MISCELLANEOUS ADMINISTRATIVE REVISIONS

***BACKGROUND:*** NASA has modified its current practice for issuance
and maintenance of the NASA FAR Supplement (NFS) by only publishing in
the Federal Register those regulations which may have a significant
effect beyond the internal operating procedures of the Agency or have a
significant cost or administrative impact on contractors or offerors and
are subject to public comment. The NFS will continue to integrate into a
single document both regulations subject to public comment and internal
Agency guidance and procedures that do not require public comment. The
single official NASA-maintained version of the NFS is available on the
Internet. NASA personnel must comply with all regulatory and internal
guidance and procedures contained in the NFS.

The periodic review of the NFS conducted in concert with the above new
practice identified various administrative and editorial changes. In
addition to the changes required for completeness and understanding of
regulatory text, editorial and administrative changes are made to
internal guidance and procedures to update document references and
titles and organizational designations.

Finally, FAC 2001-23 corrected an ambiguity in the definition of
service-disabled veteran-owned small business (SDVOSB) concern.
Consistent with the FAR clarification 1852.213-70 is revised to reflect
the change in definition of SDVOSB.

***ACQUISITIONS AFFECTED BY CHANGES:*** The change to 1852.213-70
affects all non-commercial acquisitions between \$2,500 and \$100,000.

***ACTION REQUIRED BY CONTRACTING OFFICERS:*** Use the revised provision
1852.213-70, Offeror Representations and Certifications---Other Than
Commercial Items, in all non-commercial solicitations between \$2,500
and \$100,000 issued after July 27, 2004.

***CLAUSE CHANGES:*** 1852.213-70, Offeror Representations and
Certifications -- Other Than Commercial Items, is amended by revising
the date to JULY 2004 and in paragraph (a), revising paragraph (1)(ii)
of the definition of "Service-disabled veteran-owned small business
concern.'

***PARTS AFFECTED:*** Parts 1842, 1845, 1846, 1847, 1850, 1851, and
1852.

***REPLACEMENT PAGES:*** You may use the enclosed pages to replace 42:9,
42:10, 42:11, 42:12, 45:5, 45:6, 45:11, 45:12, 46:1, 46:2, 46:9, 46:10,
47:1, 47:2, Part 1850, 51:3, 52:9, and 52:10 of the NFS.

***TYPE OF RULE AND PUBLICATION DATES:*** These changes were published
as final rules in the Federal Register (69 FR 44609 - 44611) on July 27,
2004.

***HEADQUARTERS CONTACT:*** Celeste Dalton, Code HK, (202) 358-1645,
email: Celeste.M.Dalton@nasa.gov.

James A. Balinskas

Director, Contract Management Division

Enclosures

**(*b*)** If deductions are in excess of contractor claims, recovery may
be made through a direct refund from the contractor, in the form of a
check payable to NASA, or by a set-off deduction from the voucher(s)
submitted by the contractor under any other contract, unless those
contracts contain a \"no set-off\" provision. If a set-off is affected,
the voucher(s) from which the deduction is made should be annotated to
identify the contract and appropriation affected and the applicable NASA
Form 456.

**Subpart** **1842.12\--Novation and Change-of-Name Agreements**

**1842.1203**  **Processing** **agreements.**

\(b\) The installation shall immediately notify the Headquarters Office
of Procurement (Code HS) of the request to execute a novation
(successor-in-interest) or change-of-name agreement.

\(h\) The contracting officer shall forward one copy of the agreement to
Code HS.

**1842.1203-70 DOD processing of novation** **and change-of-name
agreements on behalf** **of**

**NASA.**

\(a\) Copies of novation and change-of-name agreements executed by DOD
on behalf of NASA are maintained by the Headquarters Office of
Procurement (Code HS).

\(b\) Code HS is the Agency point of contact for issues related to
proposed novation agreements. With the concurrence of Code HS, an
installation may execute a separate agreement with the contractor.

**Subpart** **1842.13\--Suspension of Work, Stop-Work Orders, and
Government Delay**

**of Work**

**1842.1305 Contract clauses.**

\(b\) FAR 52.242-15, Stop-Work Order, shall not be used in solicitations
or contracts for research performed by educational or other nonprofit
institutions.

**Subpart** **1842.14\--Traffic and Transportation Management**

**1842.1405** **Discrepancies** **incident** **to** **shipment** **of**
**supplies.**

\(a\) NASA personnel shall also report discrepancies and adjust claims
for loss of and damage to Government property in transit in accordance
with NPR 6200.1, NASA Transportation and General Traffic Management.

**Subpart** **1842.15\--Contractor Performance Information**

**1842.1501 General.**

Communications with contractors are vital to improved performance and
this is NASA's primary objective in evaluating past performance. Other
objectives include providing data for future source selections. While
the evaluations must reflect both shortcomings and achievements during
performance, they should also elicit from the contractors their views on
impediments to improved performance emanating from the Government or
other sources.

**1842.1502 Policy.**

\(a\) Within 60 days of every anniversary of the award of a contract
having a term exceeding one year, contracting officers must conduct
interim evaluations of performance on contracts subject to FAR Subpart
42.15 and this subpart. Interim evaluations are not required on
contracts whose award anniversary is within 3 months of the end of the
contract period of performance. The final evaluation will include an
evaluation of the period between the last interim evaluation and the end
of the contract period of performance. Interim performance evaluations
are optional for SBIR/STTR Phase II contracts. A final evaluation
summarizing all performance must be conducted on all contracts.

**1842.1503 Procedures.**

\(a\) The contracting officer shall determine who (e.g., the technical
office or end users of the products or services) evaluates appropriate
portions of the contractor's performance. The evaluations are subjective
in nature. Nonetheless, the contracting officer, who has responsibility

for the evaluations, shall ensure that they are reasonable.

\(b\) NASA Form 1680, entitled, \"Evaluation of Performance,\" shall be
used to document evaluations. This provides for a five-tiered rating
(using the definitions for award fee evaluation scoring found in
1816.405-275) covering the following attributes: quality, timeliness,
price or control of costs (not required for firm-fixed-price contracts
or firm-fixed-price contracts with economic price adjustment), and other
considerations. Evaluations used in determining award fee payments
satisfy the requirements of this subpart and do not require completion
of NASA Form 1680. In addition, hybrid contracts containing both award
fee and non-award fee portions do not require completion of NASA Form
1680. Contracting Officers shall ensure that the Government discusses
all evaluations with contractors and shall record the date and the
participants on the evaluation form. Contracting officers shall sign and
date the evaluation after considering any comments received from the
contractor within 30 days of the contractor's receipt of the evaluation.
If a contractor in its timely comments disagrees with an evaluation and
requests a review at a level above the contracting officer, it shall be
provided within 30 days. While the FAR forbids use of the evaluations
for source selections more than three years after contract completion,
they shall nevertheless be retained in the contract file as provided in
FAR 4.8, Government Contract Files.

**Subpart** **1842.70\--Additional** **NASA Contract Clauses**

**1842.7001  Observance of legal** **holidays.**

\(a\) The contracting officer shall insert the clause at 1852.242-72,
Observance of Legal Holidays, in contracts when work will be performed
at a NASA installation.

\(b\) The clause shall be used with its Alternate I in
cost-reimbursement contracts when it is desired that contractor
employees not have access to the installation during Government
holidays. This alternate may be appropriately modified for fixed-price
contracts.

\(c\) The clause may be used with its Alternate II in cost-reimbursement
contracts when it is desired that administrative leave be granted
contractor personnel in special circumstances, such as inclement weather
or potentially hazardous conditions. This alternate may be appropriately
modified for fixed-price contracts.

**1842.7002  Travel outside of the United** **States.**

The contracting officer shall insert the clause at 1852.242-71, Travel
Outside of the United States, in cost-reimbursement solicitations and
contracts where a contractor may travel outside of the United States and
it is appropriate to require Government approval of the travel.

**1842.7003 Emergency medical services and evacuation.**

The contracting officer must insert the clause at 1852.242-78, Emergency
Medical Services and Evacuation, in all solicitations and contracts when
employees of the contractor are required to travel outside the United
States or to remote locations in the United States.

### Subpart 1842.71\--Submission of Vouchers

**1842.7101 Submission of vouchers.**

\(a\) Vouchers shall be submitted in accordance with the clause at
1852.216-87, Submission of Vouchers for Payment.

\(b\) The auditor shall retain an unpaid copy of the voucher.

\(c\) When a voucher submitted in accordance with the clause at
1852.216-87 contains one or more individual direct freight charges of
\$100 or more, an additional copy of Standard Form 1034A and Standard
Form 1035A shall be submitted and marked for return to the contractor
after payment. This copy shall be transmitted quarterly by the
contractor with the freight bills to the General Services
Administration. When a voucher is identified as the \"Completion
Voucher,\" an additional copy shall be submitted for transmittal to the
NASA contracting officer.

**Subpart** **1842.72\--NASA Contractor Financial Management Reporting**

**1842.7201 General.**

\(a\) **Contracting officer responsibilities.**

\(1\) Contracting officers must ensure contracts require cost reporting
consistent with both policy requirements and project needs. Contracting
Officers shall monitor contractor cost reports on a regular basis to
ensure cost data reported is accurate and timely. Adverse trends or
discrepancies discovered in cost reports should be pursued through
discussions with financial and project team members.

\(2\) Whenever cost performance threatens contract performance,
contracting officers shall require corrective action plans from the
contractors.

\(b\) **Reporting requirements.**

\(1\) Use of the NASA Contractor Financial Management Reports, the NASA
Form 533 series, is required on cost-type, price redetermination, and
fixed-price incentive contracts when the following dollar, period of
performance, and scope criteria are met:

  ----------------------- ----------------------- ----------- -----------
  **Contract              **Period of             **533M**    **533Q**
  value/scope**           Performance**                       

  \$500K to \$999K        1 year or more          Required    Optional

  \$1,000,000 and over    Less than 1 year        Required    Optional

  \$1,000,000 and over    1 year or more          Required    Required
  ----------------------- ----------------------- ----------- -----------

\(2\) When it is probable that a contract will ultimately meet the
criteria in paragraph (b)(1) of this section through change orders,
supplemental agreements, etc., the reporting requirement must be
implemented in the contract based on the estimated final contract value
at the time of award.

\(3\) NF 533Q reporting may be waived by the contracting officer, with
the concurrence of the center chief financial officer and cognizant
project manager, for support service or task order contracts, when NF
533M reports and other data are sufficient to ensure accurate monthly
cost accruals, evaluation of the contractor's cost performance, and
forecasting of resource requirements.

\(4\) Where a specific contractual requirement differs from the standard
system set forth in NPR 9501.2, NASA Contractor Financial Management
Reporting, but is determined to be in the best interests of the
Government and does not eliminate any of the data elements required by
the standard NF 533 formats, it may be approved by the contracting
officer with the concurrence of the center chief financial officer and
the project manager. Such approval shall be documented and retained,
with the supporting rationale, in the contract file.

\(5\) The contractor\'s internal automated printout reports may be
substituted for the 533 reporting formats only if the substitute reports
contain all the data elements that would be provided by the
corresponding 533\'s. The contracting officer shall coordinate any
proposed substitute with the installation financial management office.

\(c\) **Contract requirements.**

\(1\) Reporting requirements, including a description of reporting
categories, shall be detailed in the procurement request, and reports
shall be required by inclusion of the clause prescribed in 1842.7202.
The contract schedule shall include report addressees and numbers of
copies. Reporting categories shall be coordinated with the center
financial management office to ensure that data required for agency cost
accounting will be provided by the reports. Reporting dates shall be in
accordance with NPR 9501.2, except that earlier submission is encouraged
whenever feasible. No due date shall be permitted which is later than
the date by which the center financial management office needs the data
to enter an accurate monthly cost accrual in the accounting system.

\(2\) The contractor shall be required to submit an initial report in
the NF 533Q format, time phased for the expected life of the contract,
within 30 days after authorization to proceed has been granted. NF 533M
reporting will begin no later than 30 days after incurrence of cost. NF
533Q reporting begins with the initial report.

**1842.7202 Contract clause.**

The contracting officer shall insert the clause at 1852.242-73, NASA
Contractor Financial Management Reporting, in solicitations and
contracts when any of the NASA Form 533 series of reports is required
from the contractor.

## Subpart 1842.73\--Audit Tracking and Resolution

**1842.7301 NASA external audit follow-up system.**

\(a\) This section implements OMB Circular No. A-50 and NASA Policy
Directive (NPD) 1200.10 "Internal Management Controls and Audit Liaison
and Followup", which provide more detailed guidance. Recommendations
from external audits (OMB Circular No. A-133, Audits of States, Local
Governments, and Non-Profit Institutions) shall be resolved by formal
review and approval procedures analogous to those at 1815.406-171.

\(b\) The external audit followup system tracks all contract and OMB
Circular No. A-133 audits where NASA has resolution and disposition
authority. The objective of the tracking system is to

profit is contemplated) for repair, modification, rehabilitation, or
other servicing of Government property, if such property is to be
furnished to a contractor for that purpose and no other Government
property is to be furnished. The contracting officer shall not require
additional insurance under the clause unless the circumstances clearly
indicate advantages to the Government.

\(d\) The contracting officer shall insert the clause at 1852.245-73,
Financial Reporting of NASA Property in the Custody of Contractors, in
cost reimbursement contracts unless all property to be provided is
subject to the clause at 1852.245-71, Installation-Accountable
Government Property. The clause shall also be included in other types of
contracts when it is known at award that property will be provided to
the contractor or that the contractor will acquire property title to
which will vest in the Government prior to delivery.

\(e\) When approved by the Logistics Management Division of the
Headquarters Office of Infrastructure and Management (Code OJG), the
contracting officer shall insert the clause at 1852.245-74, Contractor
Accountable On-Site Government Property, in lieu of the clause at
1852.245-71, in solicitations and contracts when accountability rests
with an on-site contractor. The contracting officer's written request
for approval shall include a determination of costs that will be (1)
avoided (e.g., additional costs to the installation\'s property
management systems and staffing) and (2) incurred (e.g., reimbursable
costs of the contractor to implement, staff, and operate separate
property management systems on-site, and resources needed for
performance of, or reimbursement for, property administration) under
contractor accountability.

\(f\) The contracting officer shall insert the clause at 1852.245-75,
Title to Equipment, in solicitations and contracts where the clause at
[FAR
52.245-2](http://www.arnet.gov/far/current/html/52_245.html#1046483)
with its Alternate II or 52.245-5 with its Alternate I is used.

\(g\) The contracting officer shall insert the clause at 1852.245-76,
List of Government-Furnished Property, in solicitations and contracts if
the contractor is to be accountable under the contract for Government
property.

\(h\) The contracting officer shall insert the clause at 1852.245-77,
List of Installation-Accountable Property and Services, in solicitations
and contracts that require performance at the center and authorize
contractor use of property within the physical borders of the center.

\(i\) The contracting officer shall insert the provision at 1852.245-79,
Use of Government-Owned Property, in all solicitations when Government
property may be used by the contractor.

\(j\) The contracting officer shall insert the clause at 1852.245-80,
Use of Government Production and Research Property on a No-Charge Basis,
in solicitations and contracts when Government property (real property,
commercially available equipment, special test equipment, or special
tooling) accountable under another contract(s) is authorized for use.

**1845.106-71 Plant reconversion and plant clearance.**

The Assistant Administrator for Procurement (Code HS) is the approval
authority for any solicitation provision or contract clause that would
defer negotiation of costs for plant reconversion or plant clearance
until after award.

**Subpart** **1845.3\--Providing Government Property to Contractors**

**1845.301  Definitions.**

**\"Facilities",** as defined in the FAR, also include real property and
commercially available equipment, whether owned or leased by NASA or
reimbursed as a cost under the contract.

**\"Provide\",** as used in this subpart in such phrases as \"Government
property provided to the contractor\" and \"Government-provided
property,\" means either to furnish, as in \"Government-furnished
property,\" or to permit to be acquired, as in \"contractor-acquired
property.\" See FAR 45.101 for definitions of \"contractor-acquired
property\" and \"Government-furnished property.\"

**1845.302  Providing facilities.**

**1845.302-1  Policy.**

\(a\) In addition to the exceptions listed in FAR 45.302-1(a), existing
NASA-owned facilities (whether contractor acquired or Government
furnished) being used by a contractor may be retained for the remainder
of the contract period and furnished under any follow-on contract for
the same effort if the contracting officer determines that to do so
would be in the best interest of the Government, provided that:

**(i)** The facilities are required to accomplish the purpose of the
contract;

**(ii)** The contract contains a provision requiring the contractor to
replace any of the facilities that reach the end of their useful life
during the contract period, or which are beyond economical repair, if
the facilities are still needed for contract performance. Such
replacements shall be made with contractor-owned facilities. The
contract provision shall also expressly prohibit contractor acquisitions
of facility items for the Government, unless specifically authorized by
the contract or consent has been obtained in writing from the
contracting officer pursuant to FAR 45.302-1(a);

**(iii)** Consideration has been given to any alternative uses by
Government personnel within the agency, in consultation with the center
industrial property officer; and

**(iv)** The contracting officer documents the file with a detailed
explanation of why continued furnishing of the facilities is in the best
interest of the Government.

(a)(4)**(A)** The procurement officer is designated to make the
determinations and findings (D&F) authorizing the use of Government
facilities. See 1845.302-71 for D&F format.

**(B)** The requirements for a D&F and a prospective contractor's
written statement asserting inability to obtain facilities are not
applicable in the circumstances listed under FAR 45.302-1(d). In these
cases, the contracting officer shall document the contract file with the
rationale for providing the facilities, including the reason for not
requiring the contractor to provide them.

**1845.302-2  Facilities contracts.**

Unless termination would be detrimental to the Government\'s interests,
contracting officers shall terminate facilities contracts when the
Government property is no longer required for the performance of
Government contracts or subcontracts. Contracting officers shall not
grant the contractor the unilateral right to extend the time during
which it is entitled to use the property provided under the facilities
contract.

**1845.302-70 Securing approval of facilities projects.**

\(a\) Pursuant to NMI 7330.1, Delegation of Authority - Approval
Authorities for Facility Projects, the contracting officer must approve
facilities projects involving leasing, construction, expansion,
modification, rehabilitation, repair, or replacement of real property.

\(b\) The contracting officer\'s written authorization is required
before any change is made in the scope or estimated cost of any
facilities project.

**1845.302-71 Determination and findings.**

**1845.505-14 Reports of Government property.**

\(b\) When the clause at 1852.245-73, Financial Reporting of NASA
Property in the Custody of Contractors, is included in the contract, the
contractor shall submit NASA Form 1018, NASA Property in the Custody of
Contractors, in accordance with the instructions on the form and
1845.71. Contractor property control systems shall distinguish between
Government furnished and contractor acquired property for purposes of
reporting the acquisition cost in the property classifications shown in
FAR 45.505-14(a)(1) through (5).

**1845.508  Physical inventories.**

NASA contractors shall reconcile inventories with the official property
records and submit reports to the property administrator within 30 days
after inventory completion. The contractor shall investigate all losses
of property and discoveries of unrecorded property to determine the
causes of the discrepancy and actions needed to prevent its recurrence.

**Subpart** **1845.6\--Reporting, Redistribution, and Disposal of
Contractor Inventory**

**1845.604 Restrictions on purchase or retention of contractor
inventory.**

**(1)** No contractor may sell contractor inventory to persons known by
it to be NASA or DOD personnel who have been engaged in administering or
terminating NASA contracts.

**(2)(i)** The contractor\'s or subcontractor\'s authority to approve
the sale, purchase, or retention of Government property on a contract
which is excess to needs after Government reutilization screening at
less than cost by a subcontractor, and the subcontractor\'s authority to
sell, purchase, or retain such property at less than cost with the
approval of the contractor or next higher-tier subcontractor does not
include authority to approve \--

**(A)** A sale by a subcontractor to the contractor, the next
higher-tier subcontractor, or their affiliates; or

**(B)** A sale, purchase, or retention by a subcontractor affiliated
with the contractor or next higher-tier subcontractor.

**(ii)** Each excluded sale, purchase, or retention requires the written
approval of the plant clearance officer.

**1845.606  Inventory schedules.**

**1845.606-1 Submission.**

See 1845.608 for intra-agency screening of excess contractor-held
property.

**1845.607 Scrap.**

**1845.607-1 General.**

**1845.607-170 Contractor\'s approved scrap procedure.**

\(a\) When a contractor has an approved scrap procedure, certain
property may be routinely disposed of in accordance with that procedure
and not processed under this section.

\(b\) The center property administrator is authorized to approve the
contractor's scrap procedure. Before approval, the plant clearance
officer shall review the procedure, particularly regarding sales. The
plant clearance officer shall ensure that the procedure contains
adequate requirements for inspecting and examining items to be disposed
of as scrap. When the contractor\'s procedure does not require physical
segregation of Government-owned scrap from contractor-owned scrap and
separate disposal, care shall be exercised to ensure that a contract
change that generates a large quantity of property does not result in an
inequitable return to the Government. In such a case, the property
administrator shall make a determination as to whether separate
disposition of Government scrap would be appropriate.

\(c\) A plant clearance case shall not be established for property
disposed of through the contractor\'s approved scrap procedure.

\(d\) Property in scrap condition, other than that disposed of through
the contractor\'s approved scrap procedure, shall be reported on
appropriate inventory schedules for disposition in accordance with the
provisions of FAR Part 45 and 1845.

**1845.607-2 Recovering precious metals.**

\(b\) Silver, gold, platinum, palladium, rhodium, iridium, osmium, and
ruthenium; scrap bearing such metals; and items containing recoverable
quantities of them shall be reported to the Defense Reutilization and
Marketing Service, DRMS-R, Federal Center, Battle Creek, MI 49017-3092,
for instructions regarding disposition.

**1845.608 Screening of contractor inventory.**

**1845.608-1 General.**

\(a\) Property Disposal Officers (PDOs) are the center focal points for
intra-agency reutilization screening. PDOs shall acknowledge receipt of
inventory schedules within 30 days and simultaneously provide the plant
clearance officer a NASA screening completion/release date. Screening
shall be accomplished in accordance with NPR 4300.1.

6.  **Waiver of screening requirements.**

The Director of the Logistics Management Office of the Headquarters
Office of Management Systems and Facilities (Code JLG) is designated to
authorize exceptions to intra-agency screening requirements.

**1845.610 Sale of surplus contractor inventory.**

**1845.610-3 Proceeds of sale.**

The plant clearance officer shall maintain an open suspense record until
verifying that credit has been applied, unless another Government
representative has specifically assumed this responsibility.

**1845.610-4 Contractor inventory in foreign countries.**

NASA procedures for disposal are in NPR 4300.1**,** NASA Personal
Property Disposal Procedures and Guidelines.

**1845.613 Property disposal determinations.**

The center property disposal officer (PDO) shall review the
determinations in accordance with NPR 4300.1.

PART 1846

# QUALITY ASSURANCE

**TABLE OF CONTENTS**

1846.000 Scope of part.

**SUBPART 1846.3 CONTRACT CLAUSES**

1846.370 NASA contract clauses.

**SUBPART 1846.4 GOVERNMENT CONTRACT QUALITY ASSURANCE**

1846.401 General.

1846.470 Contract clause.

**SUBPART 1846.6 MATERIAL INSPECTION AND** **RECEIVING REPORTS**

1846.670 Introduction.

1846.670-1 General.

1846.670-2 Applicability.

1846.670-3 Use.

1846.670-4 Multiple shipments.

1846.670-5 Forms.

1846.671 Contract quality assurance on shipments between contractors.

1846.672 Preparing DD Forms 250 and 250c.

1846.672-1 Preparation instructions.

1846.672-2 Consolidated shipments.

1846.672-3 Multiple consignee instructions.

1846.672-4 Correction instructions.

1846.672-5 Invoice instructions.

1846.672-6 Packing list instructions.

1846.672-7 Receiving instructions.

1846.673 Distribution of DD Forms 250 and 250c.

1846.674 Contract clause.

**SUBPART 1846.7 WARRANTIES**

1846.703 Criteria for use of warranties.

1846.703-70 Additional criteria.

1846.704 Authority for use of warranties.

1846.770 Administration.

**PART 1846**

# QUALITY ASSURANCE

**1846.000 Scope of part.**

The Government has a duty to assure that appropriated funds are spent
wisely. That duty is fulfilled in part through surveillance.
Surveillance may be conducted through \"insight\" (i.e., monitoring of
selected metrics and/or milestones) or \"oversight\" (i.e., Government
review and concurrence with contractor decisions). The decision to use
insight or oversight is based on an assessment of the risk inherent in
the activity being surveilled. Surveillance must be conducted whether or
not the contract effort has been structured as performance-based.

**Subpart 1846.3\--Contract Clauses**

**1846.370 NASA contract clauses.**

\(a\) The contracting officer shall insert the clause at 1852.246-70,
Mission Critical Space System Per­sonnel Reliability Pro­gram, in
solicita­tions and contracts involv­ing critical positions designated in
accordance with 14 CFR 1214.5, Mission Critical Space System Personnel
Reliability Program.

\(b\) The contracting officer shall insert the clause at 1852.246-73,
Human Space Flight Item, in solicita­tions and contracts for human space
flight hardware and flight-related equipment if the highest available
quality standards are necessary to ensure astronaut safety.

**Subpart** **1846.4\--Government Contract Quality Assurance**

**1846.401 General.**

\(a\) The quality assurance surveillance plan (QASP) which the project
office prepares in conjunction with the statement of work is
preliminary. It reflects the Government\'s surveillance approach
relative to the perceived programmatic risk, and is written at a general
rather than specific level because the risks will not be completely
identified at that time. After contract award, contracting officers
shall ensure that the QASP is revised to reflect the risks associated
with the successful proposal. This final QASP shall not be included in
the contract, but should be periodically reviewed to ensure its
currency.

**1846.470 Contract clause.**

The contracting officer may insert a clause substantially as stated at
1852.246-71, Government Contract Quality Assurance Functions, in
solicitations and contracts to specify the location(s) of quality
assurance functions.

**Subpart 1846.6\--Material Inspection and Receiving Reports**

**1846.670  Introduction.**

**1846.670-1 General.**

\(a\) This subpart contains procedures and instruc­tions for use of the
Material Inspection and Receiving Report (MIRR) (DD Form 250 series).

\(b\) MIRRs are used to document CQA, accep­tance and com­mercial
shipping/packing lists used to evidence Government contract quality of
sup­plies and services, and shipments. MIRRs are not used for \--

\(5\) If applicable, bill of lading number and mode of shipment code.

**1846.672-4**  **Correction** **instructions.**

When, because of errors or omissions, it is necessary to correct the
MIRR after distribution, it shall be revised by correct­ing the original
master and distrib­uting the corrected form. The corrections shall be
made as follows:

\(a\) Circle the error and place the cor­rected informa­tion in the same
block. If space is limited, enter the corrected infor­mation in Block 16,
referenc­ing the error page and block.

\(b\) When corrections are made to Blocks 15 or 17, enter the words
***\"CORRECTIONS** **HAVE** **BEEN VERIFIED\"*** on page 1. The
autho­rized Government representa­tive shall date and sign immediately
below the statement. This verification statement and signature are not
required for other corrections.

\(c\) MIRRs shall not be corrected for Block 19 and 20 entries.

\(d\) Clearly mark pages of the MIRR requiring correc­tion with the words
***"CORRECTED COPY"***, avoiding obliteration of any other entries. Even
though corrections are made on continuation sheets only, also mark page
1 ***\"CORRECTED** **COPY\"**.*

\(e\) Page 1 and only those continuation pages marked ***\"CORRECTED**
**COPY\"*** shall be distributed to the initial distribution. A complete
MIRR with correc­tions shall be distributed to new addressee(s) created
by error corrections.

**1846.672-5**  **Invoice** **instructions.**

The Government encourages, but does not require, contractors to use
copies of the MIRR as an invoice in lieu of a commercial form. If the
MIRR is used as an invoice, four copies shall be prepared and forward­ed
to the payment office as follows:

\(a\) Complete Blocks 5, 6, 19, and 20.

\(b\) Mark, in letters approximately one inch high, the first copy
***\"ORIGINAL** **IN­VOICE\"*** and the re­maining three copies
***\"INVOICE** **COPY\"**.*

\(c\) Forward the four copies to the pay­ment office (Block 12 address).

**1846.672-6 Packing list** **instructions.**

Copies of the MIRR may be used as a packing list. The packing list
copies shall be in addition to the copies of the MIRR re­quired for
distribution (see 1846.673) and shall be marked \"PACKING LIST\".

**1846.672-7 Receiving** **instructions.**

When the MIRR is used for receiving purposes, procedures shall be as
prescribed by local directives. If acceptance or CQA and acceptance of
supplies are required upon arrival at destination, see Block 21B for
instructions.

**1846.673** **Distribution** **of** **DD** **Forms 250** **and**
**250c.**

(a) DD Forms 250 and 250c shall be distributed in accordance with
    installation proce­dures.

\(b\) The contractor is responsible for distributing DD Forms 250 and
250c in accordance with the provi­sions of the con­tract or instructions
of the contracting officer.

**1846.674  Contract clause.**

The contracting officer shall insert the clause at 1852.246-72, Material
Inspection and Receiving Report, in solicitations and contracts, except
those using simplified acquisition procedures or where the only
deliverable items are technical or scientific reports. Insert the number
of copies to be prepared. Para­graph (a) may be changed to specify
advance copies or separate distribution of the DD Form 250.

**Subpart** **1846.7\--Warranties**

**1846.703** **Criteria** **for** **use** **of** **warranties.**

**1846.703-70 Additional** **criteria.**

In deciding whether to use a warranty clause, at least the following
factors shall be considered in addition to those at FAR 46.703:

\(a\) Cost of correction or replacement, either by the contractor or by
another source, in the absence of a warranty;

\(b\) The warranty as a deterrent against the fur­nishing of defective or
nonconform­ing supplies;

\(c\) Whether the contractor\'s quality program is reliable enough to
provide ade­quate protection with­out a warranty, or, if not, whether a
warranty would cause the contractor to institute an effective quality
program;

\(d\) Reliance on \"brand-name\" integrity; and

\(e\) Whether a warranty is regularly given for a commercial component
of a more complex end item.

**1846.704** **Authority** **for** **use** **of** **warranties.**

**(1)** A warranty clause may be used when it is found to be in the best
interests of the Government, after an analysis of the factors listed in
1846.703-70 and FAR 46.703.

**(2)** Except for the warranty of commer­cial items (see FAR 12.404 and
46.709), and warranties con­tained in Federal, military, or construction
specifications, the decision to use a warran­ty clause or to include a
warranty provision in a specification other than a Federal, military, or
construction specification shall be made only upon the written
authoriza­tion of the procure­ment officer or a design­ee. This decision
may be made either for individual acquisitions or classes of
acquisitions.

**(3)** Warranties required by applicable architect-engineer
specifications shall be included in construc­tion contracts.

**1846.770**  **Administration.**

When notified of a defect in warranted items, the con­tracting officer
should ascertain whether the warranty is currently in effect and ensure
that the contractor is given proper and timely notice of the defect.

PART 1847

**TRANSPORTATION**

**TABLE OF CONTENTS**

**SUBPART 1847.2 CONTRACTS FOR TRANSPORTATION OR FOR**

**TRANSPORTATION-RELATED SERVICES**

1847.200 Scope of subpart.

1847.200-70 Charter of aircraft.

**SUBPART 1847.3 TRANSPORTATION IN SUPPLY CONTRACTS**

1847.304 Determination of delivery terms.

1847.304-3 Shipments from CONUS for overseas delivery.

1847.304-370 NASA export privilege.

1847.305 Solicitation provisions, contract clauses, and transportation
factors.

1847.305-10 Packing, marking, and consignment instructions.

1847.305-13 Transit arrangements.

1847.305-70 NASA contract clauses.

**SUBPART 1847.5 OCEAN TRANSPORTATION BY U.S.-FLAG VESSELS**

1847.506 Procedures.

**SUBPART 1847.70 PROTECTION OF THE FLORIDA MANATEE**

1847.7001 Contract clause.

**PART 1847**

# TRANSPORTATION

**Subpart** **1847.2 \--Contracts for Transportation or for**

**Transportation-Related Services**

**1847.200 Scope of subpart.**

**1847.200-70 Charter of aircraft.**

When acquiring aircraft by charter, contracting officers shall comply
with NPR 7900.3, Aircraft Operations Management.

#### Subpart 1847.3\--Transportation in Supply Contracts

**1847.304** **Determination** **of** **delivery** **terms.**

**1847.304-3** **Shipments** **from** **CONUS** **for** **overseas**
**delivery.**

**1847.304-370 NASA export privilege.**

NASA has export licensing privileges for moving commodities to foreign
destinations. Contracting officers shall request the advice of the
Center Export Administrator to ensure full and appropriate use is made
of these privileges.

**1847.305** **Solicitation** **provisions,** **contract** **clauses,**
**and** **transportation** **factors.**

**1847.305-10 Packing,** **marking,** **and** **consignment**
**instructions.**

In contracts providing for delivery f.o.b. origin and shipment under
Government bills of lading, consignment instructions may be limited to
the mail address of the consignee (receiving activity), provided the
contract instructions state: \"Shipment other than mail shall be
consigned as indicated on the Government bill of lading furnished to the
contractor.\"

**1847.305-13 Transit** **arrangements.**

(a)(3)(ii) When the provision at FAR 52.247-56 is used, the solicitation
shall state that offers will be evaluated on the basis of the lowest
overall cost to the Government, including transportation costs to NASA
from point of origin to final destination, taking into account any
applicable transit privileges.

**1847.305-70**  **NASA** **contract** **clauses.**

\(a\) The contracting officer may insert a clause substantially as
stated at 1852.247-72, Advance Notice of Shipment, in solicitations and
contracts when the f.o.b. point is destination and special Government
assistance is required in the delivery or receipt of the items.

\(b\) The contracting officer shall insert a clause substantially as
stated at 1852.247-73, Bills of Lading, in f.o.b. origin solicitations
and contracts.

**Subpart** **1847.5\--Ocean Transportation by U.S.-Flag Vessels**

**1847.506  Procedures.**

(d)**(i)** The transportation officer in each installation shall
establish and maintain a register to reflect adherence to the Cargo
Preference Act. The register shall contain data related to shipments
made by the installation and by NASA contractors. Where no
transportation officer is available, it shall be maintained by the
contracting office. The register shall contain pertinent details of
ocean shipments including, but not limited to, the ports of origin and
destination of shipments, commodity descriptions, gross weight, freight
revenue, name of vessel, operator of vessel, and date of loading. The
register shall be maintained current and organized so that adherence to
the Cargo Preference Act can be ascertained at all times. To the maximum
practicable extent, compliance with the 50-percent minimum requirements
of the Cargo Preference Act shall be maintained on a quarter-year basis;
any deficiencies in maintaining compliance shall be corrected by the end
of the calendar year.

**(ii)** On the basis of the registers maintained under paragraph (d)(i)
of this section, the official maintaining the register shall submit
quarterly reports reflecting ocean shipments to the Division of

PART 1850

**EXTRAORDINARY CONTRACTUAL ACTIONS**

**TABLE OF CONTENTS**

**SUBPART 1850.2 DELEGATION OF AND LIMITATIONS ON EXERCISE OF**

**AUTHORITY**

1850.202 Contract adjustment boards.

**SUBPART 1850.3 CONTRACT ADJUSTMENTS**

1850.305 Processing cases.

1850.305-70 Submission of request to the Contract Adjustment Board.

1850.306 Disposition.

1850.306-70 Implementation of the Contract Adjustment Board\'s decision.

**SUBPART 1850.4 RESIDUAL POWERS**

1850.403 Special procedures for unusually hazardous or nuclear risks.

1850.403-1 Indemnification requests.

1850.403-170 Subcontractor indemnification requests.

1850.403-2 Action on indemnification requests.

1850.470 Lead NASA installation.

**PART 1850**

**EXTRAORDINARY CONTRACTUAL ACTIONS**

**Subpart 1850.2\--Delegation of and Limitations on Exercise of
Authority**

**1850.202** **Contract** **adjustment boards.**

14 CFR Part 1209, Subpart 3, Contract Adjustment Board, establishes the
Contract Adjustment Board (CAB) as the approving authority to consider
and dispose of requests from NASA contractors for extraordinary
contractual actions.

**Subpart 1850.3\--Contract Adjustments**

**1850.305**  **Processing** **cases.**

**1850.305-70 Submission** **of** **request** **to** **the**
**Contract** **Adjustment** **Board.**

\(a\) After investigating the facts and issues relevant to the
contractor\'s request, the contracting officer shall forward the request
to the Associate General Counsel for General Law (Code GG), including in
the forwarding letter \--

\(1\) The nature of the case;

\(2\) The recommended disposition; and,

\(3\) If contractual action is recommended, the contracting officer\'s
opinion that the action will facilitate the national defense.

\(b\) The forwarding letter shall enclose the contractor\'s request, all
supporting material submitted by the contractor, and any material the
contracting officer has obtained while investigating the facts and
issues relevant to the request. Any classified information in the
material forwarded shall be so identified.

\(c\) Electronic submittal is preferred for unclassified material.

**1850.306  Disposition.**

**1850.306-70 Implementation of the Contract Adjustment Board\'s**
**decision.**

\(a\) The contracting officer shall take action authorized in the CAB's
decision.

\(b\) Immediately upon execution, including any required Headquarters
approval, of a contract or contract modification or amendment
implementing the CAB decision, the contracting officer shall forward a
copy of the contractual document to the Associate General Counsel for
General Law (Code GG).

**Subpart 1850.4\--Residual Powers**

**1850.403 Special** **procedures** **for** **unusually hazardous**
**or** **nuclear** **risks.**

**1850.403-1 Indemnification** **requests.**

\(a\) Contractor indemnification requests must be submitted to the
cognizant contracting officer for the contract for which the
indemnification clause is requested. Contractors shall submit a single
request and shall ensure that duplicate requests are not submitted by
associate divisions, subsidiaries, or central offices of the contractor.

\(b\) The contractor shall also provide evidence, such as a certificate
of insurance or other customary proof of insurance, that such insurance
is either in force or is available and will be in force during the
indemnified period.

**1850.403-170 Subcontractor indemnification requests.**

Subcon­tractors shall submit requests for indemni­fication to the prime
contractor and through higher tier subcontractor(s), as applicable. If
the prime contractor agrees an indemnity clause should be flowed down to
the subcontractor, the prime contractor shall forward its written
request for subcontrac­tor indemnification to the cognizant con­tracting
officer for approval in accordance with FAR 50.403-1. The prime
contractor\'s request shall provide informa­tion responsive to
1850.403-1, FAR 50.403-1, and FAR 50.403-2(a)(1), (2), (4), (5) and (7).
The agreed upon definition of the unusually hazardous risk to be
incorpo­rated into the subcontract shall be the same as that incor­porated
in the prime contract.

**1850.403-2** **Action** **on** **indemnification** **requests.**

\(a\) If recommending approval, the contracting officer shall forward
the required information to the Assistant Administrator for Procurement
(Code HS), along with the following:

**(i)** For contracts of five years duration or longer, a determina­tion,
with supporting rationale, whether the indemnification ap­proval and
insurance coverage and premi­ums should be reviewed for adequacy and
continued validity at points in time within the extended contract
period.

**(ii)** A recommended Memorandum of Decision. In addition to the
applicable requirements of FAR 50.306, the Memorandum of Decision shall
contain the following:

**(A)** The specific definition of the unusu­ally hazardous risk to which
the contractor is exposed in the performance of the con­tract(s);

**(B)** A complete discussion of the contrac­tor\'s financial protection
program; and

**(C)** The extent to, and conditions under, which indemnification is
being approved for subcontracts.

\(d\) If approving subcontractor indemnification, the contracting
officer shall docu­ment the file with a memorandum for record addressing
the items set forth in FAR 50.403-2(a) and include an analysis of the
subcont­ractor\'s financial protection program. In performing this
analysis, the contracting officer shall take into consideration the
availability, cost, terms and conditions of insurance in relation to the
unusually haz­ardous risk.

**1850.470 Lead** **NASA installation.**

\(a\) Contractors applying for indemnification shall determine which
NASA installation has the highest dollar amount of contracts for which
indemnification is requested. The indemnification request should be
submitted to the procurement officer for that installation, who will
then designate a cognizant contracting officer. Contractors shall submit
a single request and ensure duplicate requests are not submitted by
associate divisions, subsidiaries, or central offices of the contractor.

\(b\) The receiving installation will become the lead installation and
will remain so indefinitely. Lead installation designation may change to
another installation if the affected procurement officers agree to the
change. Should a change occur in the lead installation, all records
related to indemnification of that contractor shall be transferred to
the gain­ing installation.

**Subpart 1851.2\--Contractor Use of Interagency Fleet Management System
(IFMS)**

**Vehicles**

**1851.202 Authorization.**

\(a\) In accordance with NPR 6200.1, "NASA Transportation and General
Traffic Management", the contracting officer shall obtain concurrence
from the Transportation Officer before authorizing a contractor to
obtain Government-owned or -leased vehicles and related services.

**1851.205 Contract clause.**

When the clause at FAR 52.251-2 is included in a solicitation or
contract, also include the clause set forth at 1852.223-76.

**1852.213-70 Offeror Representations and Certifications--Other Than
Commercial Items.**

As prescribed in 1813.302-570, insert the following provision:

OFFEROR REPRESENTATIONS AND CERTIFICATIONS---OTHER THAN COMMERCIAL ITEMS

(JULY 2004)

\(a\) *Definitions.* As used in this provision\--

*\"Emerging small business\"* means a small business concern whose size
is no greater than 50 percent of the numerical size standard for the
NAICS code designated.

*\"Forced or indentured child labor\"* means all work or service\--

\(1\) Exacted from any person under the age of 18 under the menace of
any penalty for its nonperformance and for which the worker does not
offer himself voluntarily; or

\(2\) Performed by any person under the age of 18 pursuant to a contract
the enforcement of which can be accomplished by process or penalties.

> *\"Service-disabled veteran-owned small business concern\"* **\--**

\(1\) Means a small business concern\--

\(i\) Not less than 51 percent of which is owned by one or more
service-disabled veterans or, in the case of any publicly owned
business, not less than 51 percent of the stock of which is owned by one
or more service-disabled veterans; and

\(ii\) The management and daily business operations of which are
controlled by one or more service-disabled veterans or, in the case of a
service- disabled veteran with permanent and severe disability, the
spouse or permanent caregiver of such veteran.

\(2\) Service-disabled veteran means a veteran, as defined in 38 U.S.C.
101(2), with a disability that is service-connected, as defined in 38
U.S.C. 101(16).

*\"Small business concern\"* means a concern, including its affiliates,
that is independently owned and operated, not dominant in the field of
operation in which it is bidding on Government contracts, and qualified
as a small business under the criteria in 13 CFR Part 121 and size
standards in this solicitation.

*\"Veteran-owned small business concern\"* means a small business
concern\--

\(1\) Not less than 51 percent of which is owned by one or more veterans
(as defined at 38 U.S.C. 101(2)) or, in the case of any publicly owned
business, not less than 51 percent of the stock of which is owned by one
or more veterans; and

\(2\) The management and daily business operations of which are
controlled by one or more veterans.

*\"Women-owned small business concern\"* means a small business
concern\--

\(1\) That is at least 51 percent owned by one or more women; or, in the
case of any publicly owned business, at least 51 percent of the stock of
which is owned by one or more women; and

\(2\) Whose management and daily business operations are controlled by
one or more women.

\(b\) Taxpayer Identification Number (TIN) (26 U.S.C. 6109, 31 U.S.C.
7701).

\(1\) All offerors must submit the information required in paragraphs
(b)(3) through (b)(5) of this provision to comply with debt collection
requirements of 31 U.S.C. 7701(c) and 3325(d), reporting requirements of
26 U.S.C. 6041, 6041A, and 6050M, and implementing regulations issued by
the Internal Revenue Service (IRS).

\(2\) The TIN may be used by the Government to collect and report on any
delinquent amounts arising out of the offeror\'s relationships with the
Government (31 U.S.C. 7701(c)(3)). If the resulting contract is subject
to the payment reporting requirements described in FAR 4.904, the TIN
provided hereunder may be matched with IRS records to verify the
accuracy of the offeror\'s TIN.

\(3\) *Taxpayer Identification Number (TIN).*

\[ \] TIN: \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_.

\[ \] TIN has been applied for.

\[ \] TIN is not required because:

\[ \] Offeror is a nonresident alien, foreign corporation, or foreign
partnership that does not have income effectively connected with the
conduct of a trade or business in the United States and does not have an
office or place of business or a fiscal paying agent in the United
States;

\[ \] Offeror is an agency or instrumentality of a foreign government;

\[ \] Offeror is an agency or instrumentality of the Federal Government.

\(4\) *Type of organization.*

\[ \] Sole proprietorship;

\[ \] Partnership;

\[ \] Corporate entity (not tax-exempt);

\[ \] Corporate entity (tax-exempt);

\[ \] Government entity (Federal, State, or local);

\[ \] Foreign government;

\[ \] International organization per 26 CFR 1.6049-4;

\[ \] Other \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_.

\(5\) *Common parent.*

\[ \] Offeror is not owned or controlled by a common parent;

\[ \] Name and TIN of common parent:

Name \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_.

TIN \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_.

\(c\) Offerors must complete the following representations when the
resulting contract will be performed in the United States or its
outlying areas. Check all that apply.

\(1\) *Small business concern.* The offeror represents as part of its
offer that it \[ \] is, \[ \] is not a small business concern.

\(2\) *Veteran-owned small business concern.* \[Complete only if the
offeror represented itself as a small business concern in paragraph
(c)(1) of this provision.\] The offeror represents as part of its offer
that it \[ \] is, \[ \] is not a veteran-owned small business concern.

\(3\) *Service-disabled veteran-owned small business concern.*
\[Complete only if the offeror represented itself as a veteran-owned
small business concern in paragraph (c)(2) of this provision.\] The
offeror represents as part of its offer that it \[ \] is, \[ \] is not a
service-disabled veteran-owned small business concern.

\(4\) *Small disadvantaged business concern.* \[Complete only if the
offeror represented itself as a small business concern in paragraph
(c)(1) of this provision.\] The offeror represents, for general
statistical purposes, that it \[ \] is, \[ \] is not a small
disadvantaged business concern as defined in 13 CFR 124.1002.

\(5\) *Women-owned small business concern.* \[Complete only if the
offeror represented itself as a small business concern in paragraph
(c)(1) of this provision.\] The offeror represents that it \[ \] is, \[
\] is not a women-owned small business concern.