[Federal Register Volume 61, Number 208 (Friday, October 25, 1996)]
[Proposed Rules]
[Pages 55264-55266]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-26336]
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NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
48 CFR Parts 1842 and 1852
Revision to NASA FAR Supplement Coverage on Contractor Financial
Management Reporting
AGENCY: Office of Procurement, Contract Management Division, National
Aeronautics and Space Administration (NASA).
ACTION: Notice of Proposed rulemaking.
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SUMMARY: Changes are proposed to update the NASA FAR Supplement (NFS)
coverage on contractor financial management reporting to make it
compatible with current NASA reporting policy, including accounting
requirements imposed by the Chief Financial Officers Act of 1990, the
need for complete, timely and accurate project cost information and
reassessment of the appropriate level of responsibility and authority
in accordance with Government downsizing initiatives.
The revised NFS coverage eliminates requirements for use of the
Monthly Contractor Financial Management Performance Analysis Report,
NASA Form 533P, and the clause included in 1852.242-74. NASA no longer
uses the NF 533P format and is revising its approach to performance
measurement reporting as a result of discussions with other Government
agencies and industry. Revisions to the NASA performance measurement
requirements will be published at a later date. The revised coverage
gives regulatory effect to the publication of revised guidance on NASA
Contractor Financial Management Reporting in NASA Procedures and
Guidelines (NPG) 9501.2; provides for approval of exceptions from the
standard reporting requirements set forth in the NPG at NASA Centers,
rather than at Headquarters; permits waiver of NF 533Q reporting for
certain contracts where NF 533M reporting provides adequate
information; encourages the submission of reports earlier than the
required due dates whenever feasible; and permits the use of
alternative due dates, but only when data will be received in time for
use in NASA's monthly cost accrual process. The time period for
submission of the initial report is extended from 10 to 30 days after
authorization to proceed has been granted. Contracting officers are
given additional options to direct the contractor to report only when
actual cost changes occur or suspend reporting altogether when the
contract effort is completed and NASA has accepted all contract line
items. Prime contractors are no longer required to use NASA Forms 533
for subcontractor reporting, but must ensure that their NF 533 reports
include accurate and timely subcontractor cost data. The revised
procedures will be required to be used on all new contracts issued
after the proposed regulations are adopted as a final rule. Existing
contracts at that time will not require modification to incorporate the
changes unless: requested by the contractor; there is a demonstrated
cost savings; or there will be no cost for implementation.
DATES: Comments must be received on or before November 25, 1996.
ADDRESSES: Submit comments to Larry G. Pendleton, Contract Management
Division (Code HK), Office of Procurement, NASA Headquarters,
Washington, DC 20546. Comments on the paperwork burden should be
addressed to the Office of Information and Regulatory Affairs, Office
of Management and Budget, Attention: Desk Officer for NASA, Washington,
DC 20503.
FOR FURTHER INFORMATION CONTACT: Mr. Larry G. Pendleton, NASA
Headquarters, Code HK, (202) 358-0487.
SUPPLEMENTARY INFORMATION:
Background
NASA is updating its requirements for contractor financial
management reporting in order to comply with the Chief Financial
Officers Act of 1990, obtain complete, timely and accurate project cost
information, and implement changes in the responsibilities and
authorities of both NASA Headquarters and subordinate organizational
elements.
The Chief Financial Officers Act of 1990 requires that NASA publish
audited annual financial statements. This requirement has placed
additional emphasis on the need for timely and accurate contract cost
data to ensure the accuracy of NASA accounting information.
NASA's guidance for contractor financial management reporting, NPG
9501.2, has been revised to clarify reporting requirements, address
problems and questions that have arisen over time, and reassign
responsibilities and authorities to permit more effective operations in
today's environment. Training on NASA's expectations for contractor
financial management reporting has been presented to all NASA
contractors holding cost-reimbursement contracts over the past two
years, and contractors have informally reviewed and commented upon the
revised guidance. These changes to the NFS recognize the modified NPG
9501.2 and provide complimentary coverage.
Based upon discussions with other Government agencies and industry
representatives, NASA has eliminated the Monthly Contractor Financial
Management Performance Report, NF 533P, from the NASA Contractor
Financial Management Reporting system. The agency is revising its
approach to performance measurement, or earned value, reporting to make
it more consistent with Department of Defense requirements and existing
contractor systems.
Change Highlights
The following revisions eliminate the use of the Monthly Contractor
Financial Management Performance Analysis Report, NASA Form 533P. The
contract clause at 1852.242-74 which required use of NF 533P is
deleted. Exceptions from the standard reporting requirements are
authorized to be approved at NASA Centers rather than at NASA
Headquarters. The time period for submission of the initial report is
extended from 10 to 30 days after contract authorization to proceed has
been granted. Prime contractors are no
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longer required to use NASA Forms 533 for subcontractor reporting, but
must ensure that their NF 533 reports include accurate and timely
subcontractor cost data.
Regulatory Flexibility Act
NASA certifies that these regulation changes 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.).
Paperwork Reduction Act
This rule proposes to eliminate the following report that was
approved by the Office of Management and Budget (OMB) and assigned OMB
Control Number 2700-0003.
Title: Monthly Contractor Financial Management Performance Analysis
Report.
Summary: This report provided NASA project management with a timely
and comprehensive assessment of the contractor's performance over the
reporting period, including cost, technical and schedule status.
Notice: Comments on the elimination of this report may be submitted
to the OMB address shown under ADDRESSEES.
List of Subjects in 48 CFR Parts 1842 and 1852
Government procurement.
Tom Luedtke,
Deputy Associate Administrator for Procurement.
Accordingly, 48 CFR 1842 and 1852 are proposed to be amended as
follows:
1. The authority citation for 48 CFR Parts 1842 and 1852 continues
to read as follows:
Authority: U.S.C. 2473(c)(1).
PART 1842--CONTRACT ADMINISTRATION
Subpart 1842.72--NASA Contractor Financial Management Reporting
1842.7201 [Amended]
2. In paragraph (b)(1) to section 1842.7201, the graphics box
containing reporting criteria and report format is revised to read as
follows:
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Criteria Report Format
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Period of
Contract Value/Scope Performance 533M 533Q
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$500K to $999K............... 1 Year or More...... Required......................... Optional.
$1,000,000 and Over.......... 1 Less than 1 Year.. Required......................... Optional.
$1,000,000 and Over.......... 1 Year or More...... Required......................... Required.
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3. In paragraph (b)(2) to section 1842.7201, the phrase ``as
initially awarded.'' is revised to read ``, based on the estimated
final contract value at the time of award.''
4. In section 1842.7201, paragraph (b)(3) is revised and a new
paragraph (b)(4) is added to read as follows:
1842.7201 General.
(a) * * *
(b) * * *
(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, evaluate the contractor's cost performance and
forecast resource requirements.
(4) Where a specific contractual requirement differs from the
standard system set forth in NPG 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
cognizant Project Manager. Such approval shall be documented and
retained, with the supporting rationale, in the contract file.
* * * * *
5. In section 1842.7201, the existing paragraph (c) is redesignated
as a new paragraph (b)(5), and paragraphs (d) and (e) are redesignated
as paragraphs (c) and (d) and are revised to read as follows:
(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 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 NPG 9501.2, except
that earlier submission is encouraged wherever 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.
(d) Deviations. Deviations from the financial management reporting
clause require approval in accordance with 1801.471, and the
concurrence of the Director, Financial Management Division and the
official-in-charge of the cognizant Headquarters Program Office.
6. Section 1842.7202 is revised to read as follows:
1842.7202 Contract clauses.
The clause at 1852.242-73, NASA Contractor Financial Management
Reporting, shall be used when any of the NASA Form 533 reports are
required from the contractor.
1852--SOLICITATION PROVISIONS AND CONTRACT CLAUSES
7. Section 1852.242-73 is revised to read as follows:
1852.242-73 NASA Contractor Financial Management Reporting.
As prescribed in 1842.7202, insert the following clause in
contracts that require submission of NASA Form 533M or 533Q reports.
NASA Contractor Financial Management Reporting
August 1996.
(a) The Contractor shall submit NASA Contractor Financial
Management Reports on NASA Forms 533 in accordance with the
instructions in NASA Contractor Financial Management Reporting (NPG
9501.2) and on the reverse side of the forms, as supplemented in the
Schedule of this contract. The detailed reporting categories to be
used, which shall correlate with technical
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and schedule reporting, shall be set forth in the Schedule.
Contractor implementation of reporting requirements under this
clause shall include NASA approval of the definitions of the content
of each reporting category and give due regard to the Contractor's
established financial management information system.
(b) Lower level detail used by the Contractor for its own
management purposes to validate information provided to NASA shall
be compatible with NASA requirements.
(c) Reports shall be submitted in the number of copies, at the
time, and in the manner set forth in the Schedule or as directed in
writing by the Contracting Officer. Upon completion and acceptance
by NASA of all contract line items, the Contracting Officer may
direct the Contractor to submit Form 533 reports on a quarterly
basis only, report only when changes in actual cost occur, or
suspend reporting altogether.
(d) The Contractor shall ensure that its NF 533 reports include
accurate subcontractor cost data, in the proper reporting
categories, for the reporting period.
(e) If, during the performance of this contract, NASA requires a
change in the information or reporting requirements specified in the
Schedule, or as provided for in paragraph (a) or (c) of this clause,
the Contracting Officer shall effect that change in accordance with
the Changes clause of this contract.
(End of clause)
1852.242-74 [Removed]
8. Section 1852.242-74 is removed.
[FR Doc. 96-26336 Filed 10-24-96; 8:45 am]
BILLING CODE 7510-01-M