[Federal Register Volume 60, Number 142 (Tuesday, July 25, 1995)]
[Proposed Rules]
[Pages 37983-37986]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-18122]
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NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
48 CFR Parts 1809, 1830, and 1831
NASA FAR Supplement; Rewrite of NASA Policy on Contractor
Qualifications, Cost Accounting Standards Administration, and Contract
Cost Principles and Procedures
AGENCY: Office of Procurement, Contract Management Division, National
Aeronautics and Space Administration (NASA).
ACTION: Proposed rule.
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SUMMARY: This is a proposed revision of the NASA FAR Supplement in
order to rewrite NASA policy on Contractor Qualifications, Cost
Accounting Standards Administration, and Contract Cost Principles and
Procedures. The changes are intended to streamline the regulation.
DATES: Comments are due on or before September 25, 1995.
ADDRESSES: Comments should be addressed to: National Aeronautics and
Space Administration, Contract Management Division (Code HK/Beck),
Washington, DC 20546.
FOR FURTHER INFORMATION CONTACT:
David K. Beck, (202) 358-0482.
SUPPLEMENTARY INFORMATION:
Background
We are rewriting the NASA FAR Supplement in order to streamline the
regulation, delegate authority to the lowest possible level, and
eliminate unnecessary reports and requirements. This rule proposes
revisions to three parts of the NASA FAR Supplement. Although the
revisions are minor, we are publishing these changes for comment
because the parts cover topics of considerable interest to NASA
contractors.
Summary of Changes
The policy on Canadian subcontractors is shortened and relocated to
Sec. 1809.104-4. The policy on contractor use of ``Made in America''
labels is removed because the topic is addressed by FAR 9.406-2(a)(4).
The discussion of conditions for preaward surveys at Sec. 1809.106-1 is
removed because it is unnecessary guidance.
Several changes are made to Sec. 1809.106-70 on preaward surveys.
Paragraphs (d) (2) and (3) are changed in order to remove unnecessary
words and provide additional guidance on requesting surveys.
Unnecessary words are removed from paragraphs (j)(4) and (k)(1).
In paragraph 1809.202(a), the responsibility for justifying
qualification requirements is restated. Paragraphs 1809.203-70(a) and
1809.206-1(b) are changed to indicate current organizational names.
Paragraph 1809.203-70(c) is removed because it is not needed in this
regulation.
Subpart 1809.4 on debarment is revised in order to show
reassignment of this responsibility in NASA's Office of Procurement,
reorganize the material for clarity, and remove redundant or
unnecessary material.
The following sections on cost accounting standards (CAS)
administration are removed because they provide unnecessary guidance:
Sec. 1830.101 on ``national defense'' contracts, Sec. 1830.7000 on
incentive contracts, Sec. 1830.7001-2 on preaward facilities capital
applications, and Secs. 1830.7002 through 1830.7002-2 on facilities
capital employed for facilities under construction. The remaining CAS
sections are revised for clarity.
In subpart 1831 on cost principles, Sec. 1831.205-670 is revised in
order to shorten the section.
Paperwork Reduction Act
The Paperwork Reduction Act does not apply because the proposed
changes to the NASA FAR Supplement do not impose any new recordkeeping
requirements or new collections of information from offerors,
contractors, or members of the public which require the approval of the
Office of Management and Budget (OMB) under 44 U.S.C. 3501, et seq.
Regulatory Flexibility Act
NASA certifies that this regulation will not have a significant
economic impact on a substantial number of small entities under the
Regulatory Flexibility Act (5 U.S.C. 601 et seq.).
[[Page 37984]]
List of Subjects in 48 CFR Parts 1809, 1830, and 1831
Government procurement.
Tom Luedtke,
Deputy Associate Administrator for Procurement.
Accordingly, 48 CFR Parts 1809, 1830, and 1831 are proposed to be
amended as follows:
1. The authority citation for 48 CFR Parts 1809, 1830, and 1831
continues to read as follows:
Authority: 42 U.S.C. 2473 (c)(1).
PART 1809--CONTRACTOR QUALIFICATIONS
2. Sections 1809.102 and 1809.102-70 are removed.
3. Section 1809.104 and 1809.104-4 are added to read as follows:
1809.104 Standards.
1809.104-4 Subcontractor responsibility.
Generally, a Canadian firm proposed by the Canadian Commercial
Corporation (CCC) as its subcontractor shall be accepted as responsible
by the contracting officer. However, when the CCC determination of
responsibility is not consistent with other available information, the
contracting officer shall request from CCC and any other appropriate
sources additional information or plant surveys needed in order to make
the determination of responsibility required by FAR 9.103(b).
1809.104-70 and 1809.106 [Removed]
4. Sections 1809.104-70 and 1809.106-1 are removed.
5. Section 1809.106-70 is amended by revising the section heading,
revising paragraphs (d)(2) and (3), revising paragraph (g), removing
the paragraph headings from paragraphs (j)(4)(i) and (ii), and in
paragraph (k)(1) by revising the paragraph heading and the first
sentence to read as follows:
1809.106-70 NASA preaward surveys.
* * * * *
(d) * * *
(2) Any information indicating previous unsatisfactory contract
performance shall be furnished to the survey activity with the preaward
survey request.
(3) If the survey activity is a DOD agency, the request is to be
sent to the appropriate office shown in the DOD Directory of Contract
Administration Services Components, DLAH 4105.4, Attn: Preaward Survey
Monitor. The date on which the completed survey report is desired
should be indicated. DOD normally allows seven working days in which to
conduct a full survey and submit the report to the requesting agency,
however, more time should be allowed for the particular circumstances
of the survey. For example complex items, new or inexperienced
contractors, and time-consuming requirements, such as, secondary
surveys, accounting system reviews, financial capability analysis, or
purchasing activity participation may require additional time.
* * * * *
(g) Steps for survey performance. Three steps in performing a
preaward survey are--
(1) Preliminary analysis;
(2) Development and evaluation of information; and
(3) Preparation and review of the preaward survey report.
* * * * *
(k) * * *
(1) Findings and recommendations of team. When the required
information has been gathered, each participant shall (i) analyze it
and evaluate the prospective contractor's capability to perform with
respect to the functions or elements investigated and (ii) provide
findings and recommendations to the monitor on one or more of the
appropriate forms (see FAR 9.106-4(a)) or on attachments. * * *
* * * * *
6. Paragraph (a) of section 1809.202 is revised to read as follows:
1809.202 Policy.
(a) The cognizant technical activity is responsible for meeting the
requirements of FAR 9.202(a) with approval by the installation's
competition advocate.
* * * * *
7. Section 1809.203-70 is amended by revising paragraph (a) and
removing paragraph (c) to read as follows:
1809.203-70 General.
(a) The Director, Quality Management Division (QW), is responsible
for justifying, determining, and approving NASA's need for inclusion
and continued use of qualification requirements in specifications under
the NASA Microelectronics Reliability Program.
(b) * * *
8. Paragraph (b) section 1809.206-1 is revised to read as follows:
9.206-1 General.
(a) * * *
(b) Requests not to enforce a qualification requirement in a non-
emergency situation shall be prepared by the cognizant requirements
office and approved by the Headquarters Office of Safety and Mission
Assurance (Code Q).
(c) * * *
9. Section 1809.404 is revised to read as follows:
1809.404 List of Parties Excluded from Federal Procurement and
Nonprocurement Programs.
(a) NASA Headquarters, Office of Procurement, Program Operations
Division (Code HS) is responsible for taking the actions enumerated
under FAR 9.404(c).
(b) In compliance with FAR 9.404(c)(5), contracting officers shall
consult the list entitled Parties Excluded from Procurement Programs,
which is contained in the GSA publication entitled, Lists of Parties
Excluded from Federal Procurement or Nonprocurement Programs, to ensure
that they do not award contracts to or consent to subcontracts with
listed parties, except as provided in FAR 9.405.
(c) For the purpose of obtaining copies of the list, field
installation procurement offices shall notify NASA Headquarters, Office
of Procurement, Program Operations Division (Code HS) of how many
copies they want and provide a single mailing address at the
installation. Code HS will, in turn, place the order for the copies
which will be mailed directly to the installation.
10. Section 1809.405 is revised to read as follows:
1809.405 Effect of listing.
If a contract, or subcontract subject to contracting officer
consent, must be awarded, renewed, or otherwise extended with a listed
party, the procurement officer shall prepare a request for a
determination with all necessary supporting documentation and forward
it to the Associate Administrator for Procurement (Code HS) for
approval. Some examples of circumstances that may constitute a
compelling reason under FAR 9.405(a), 9.405-1(b), or 9.405-2(a) for
award, renewal, or extension include the following:
(a) The property or services to be acquired are available only from
the listed party.
(b) The urgency of the requirement dictates that NASA deal with the
listed party.
(c) Other reasons related to the national defense or program
requirements that necessitate continued business dealings with the
listed party.
11. Section 1809.405-1 is revised to read as follows:
[[Page 37985]]
1809.405-1 Continuation of current contracts.
The contracting officer may terminate a contract under FAR 9.405-
1(a) if it is in the best interest of the Government to do so, unless
directed otherwise by the Associate Administrator for Procurement.
12. Sections 1809.405-2, 1809.406, 1809.406-3, 1809.407, and
1809.407-3 are removed.
13. Paragraphs (b), (d), and (e) of section 1809.408 are revised to
read as follows:
1809.408 Certification regarding debarment, suspension, proposed
debarment, and other responsibility matters.
(a) * * *
(b) If the offeror indicates that it is presently debarred,
suspended, or proposed for debarment, the contracting officer may make
a non-responsibility determination without notifying the Associate
Administrator for Procurement. If the contracting officer determines
that award must be made to such firm, follow the procedures set out in
1809.405, FAR 9.405-1(b), 9.405-2, 9.406-1(c) or 9.407-1(d).
(c) * * *
(d) If the offeror indicates that it has been indicted, charged,
convicted, or had a civil judgment rendered against it, the contracting
officer, in accordance with FAR 9.408(a), shall immediately notify the
Associate Administrator for Procurement (Attn: Code HS), providing
details as known, and shall await a response from Code H before
awarding the contract.
(e) If the offeror discloses information that indicates a need for
a debarment or suspension determination by the agency debarring
official, the contracting officer shall report the facts to the
Associate Administrator for Procurement (Code HS) in accordance with
1809.470.
14. Section 1809.470-1 is amended by revising the introductory
text, revising paragraph (b), and adding paragraph (c) to read as
follows:
1809.470-1 Situations requiring reports.
A report incorporating the information required by 1809.470-2 below
shall be forwarded by the procurement officer to the Associate
Administrator for Procurement (Code HS) when a contractor--
(a) * * *
(b) Is suspected of attempting to evade the prohibitions of a
debarment or suspension by change of address, multiple addresses,
formation of new companies, or other devices.
(c) This report is not necessary if the NASA Office of the
Inspector General (OIG) has recommended that the Associate
Administrator for Procurement take debarment or suspension action.
15. Paragraph (h) of section 1809.470-2 is revised to read as
follows:
1809.470-2 Contents of reports.
* * * * *
(h) A complete summary of all pertinent evidence. If a request for
debarment or suspension is based on an indictment or a conviction,
provide copies of those documents.
* * * * *
16. Section 1809.470-3 is revised to read as follows:
1809.470-3 Addresses and copies of reports.
Reports, including enclosures, shall be submitted in duplicate to
the Associate Administrator for Procurement (Code HS).
PART 1830--COST ACCOUNTING STANDARDS ADMINISTRATION
17. Subpart 1830.1 is removed.
18. Section 1830.201-5 is revised to read as follows:
1830.201-5 Waiver.
After the contracting officer has made the determination required
by FAR 30.201-5, the procurement officer shall forward all requests for
waiver of CAS requirements to the Associate Administrator for
Procurement (Code HC) for submittal to the CAS Board.
19. Section 1830.7001 is removed.
20. Section 1830.7001-1 is redesignated as section 1830.7001 and
revised to read as follows:
1830.7001 Contract facilities capital estimates.
(a) After the appropriate Cost Accounting Standards Board-Cost of
Money (CASB-CMF) Forms have been analyzed and cost of money factors
(CMFs) have been developed, the contracting officer can estimate the
facilities capital cost of money and capital employed for a contract
proposal. DD Form 1861 ``Contract Facilities Capital Cost of Money''
shall be used for this purpose and, when properly completed, becomes a
connecting link between the Forms CASB-CMF and any applicable agency
structured approach to determination of profit or fee objectives.
(b) The structure and allocation base units-of-measure must be
compatible on the DD 1861, the proposal, and the CASB-CMF. Overhead
pools, for example, engineering, manufacturing, and G&A, are listed by
year in the first column of the DD Form 1861 labeled POOL. The
allocation base figure for each overhead pool objective is extracted
from the evaluated cost breakdown or pre-negotiation cost objective and
listed by year in the second column. Each allocation base is then
multiplied by the recommended facilities capital cost of money factor
calculated on the CASB-CMF for that base. The total facilities capital
cost of money amounts appearing in the last column labeled AMOUNT are
totaled in the space provided in the line labeled TOTAL. This total
represents the estimated facilities capital cost of money amount for
the contract and is the figure to be used to calculate the
prenegotiation position memorandum objective cost and to reduce the
profit objective in accordance with 1815.970-3(a). The lines labeled
TREASURY RATE and FACILITIES CAPITAL EMPLOYED (TOTAL DIVIDED BY
TREASURY RATE) and Section 7 of the form labeled DISTRIBUTION OF
FACILITIES CAPITAL EMPLOYED do not apply to NASA and should be ignored.
1830.7001-2 [Removed]
21. Sections 1830.7001-2 is removed.
22. Section 1830.7002 is removed and Section 1830.7001-3 is
redesignated as section 1830.7002 and revised to read as follows:
1830.7002 Payments for facilities capital.
(a) Interim billings based on costs incurred. Contract Facilities
Capital Cost of Money may be included in cost reimbursement and
progress payment invoices. The amount that qualifies as cost incurred
for purposes of the Allowable Cost and Payment or Progress Payment
clause of the contract is the result of multiplying the incurred
portions of the indirect cost pool allocation bases by the latest
available CMFs. Like applied overhead at forecasted overhead rates,
such computations are interim estimates subject to adjustment. As each
year's data are finalized by computation of the actual CFMs under CAS
414 and FAR 31.205-10, the new factors should be used to calculate
contract facilities cost of money for the next accounting period.
(b) Final settlement. Contract Facilities Capital Cost of Money for
final cost determination or repricing is based on each year's final
CMFs determined under CAS 414 and supported by separate Forms CASB-CMF.
Contract cost must be separately computed in a manner similar to yearly
final overhead rates. Also like overhead costs, the final settlement
will include an adjustment from interim to final contract cost of
[[Page 37986]]
money. However, estimated or target cost will not be adjusted.
23. Sections 1830.7002-1 through 1830.7002-2 are removed.
PART 1831--CONTRACT COST PRINCIPLES AND PROCEDURES
24. Section 1831.205-670 is revised to read as follows:
1831.205-670 Evaluation of contractor and subcontractor compensation
for service contracts.
(a) The contracting officer shall evaluate the reasonableness of
employee compensation in service contracts:
(1) Prior to the award of a cost reimbursement or noncompetitive
fixed-price type contract which has a total potential value in excess
of $500,000, and
(2) Periodically after award for cost reimbursement contracts and
subcontracts, but at least every three years.
(b) The contracting officer shall ensure the reasonableness of
compensation is evaluated for cost reimbursement and non-competitive
fixed-price type service subcontracts under a prime contract meeting
the criteria in paragraph (a)(1) of this section if:
(1) The subcontract has a total potential value in excess of
$500,000; and
(2) The cumulative value of all of a subcontractor's service
subcontracts under the prime contract is in excess of 10 percent of the
prime contract's total potential value.
(c) The results of the contracting officer's evaluation, including
any excessive compensation found and its planned resolution, shall be
addressed in the prenegotiation position memorandum, with the final
resolution discussed in the price negotiation memorandum. The results
of the periodic evaluations of contractor and subcontractor
compensation after contract award shall be documented in the contract
file.
[FR Doc. 95-18122 Filed 7-24-95; 8:45 am]
BILLING CODE 7510-01-M