[Federal Register Volume 62, Number 129 (Monday, July 7, 1997)]
[Rules and Regulations]
[Pages 36227-36228]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-17309]


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NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Part 1842


Quick-Closeout Procedures

AGENCY: Office of Procurement, Contract Management Division, National 
Aeronautics and Space Administration (NASA).

ACTION: Final rule.

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SUMMARY: In the interest of streamlining and to better determine the 
applicability of quick-closeout procedures, this action amends the NASA 
FAR Supplement (NFS) rule at 1842.708(a)(2)(ii). The amended rule 
deletes the contract value dollar threshold for when quick-closeout may 
be used without the prior approval of the installation procurement 
officer and replaces it with a requirement to perform a risk 
assessment.

EFFECTIVE DATE: July 7, 1997.


[[Page 36228]]


FOR FURTHER INFORMATION CONTACT:
Mr. Joseph Le Cren, (202) 358-0444.

SUPPLEMENTARY INFORMATION:

Background

    NFS 1842.708(a)(2)(ii) limits the use of quick-closeout to 
contracts with a value, excluding fee, not greater than $2 million 
unless the prior approval of the installation procurement officer is 
obtained. This entails the preparation of a deviation package for each 
contract above the threshold for which quick-closeout is to be used. 
Several NASA installations have processed a number of such deviations 
over the last few years. In addition, one installation has twice 
requested and been granted a class deviation to the NFS $2 million 
threshold in order to handle the number of contracts above that amount 
for which the use of quick-closeout procedures was desired. We believe 
the performance of a risk assessment is a better tool than a limitation 
on the contract value for ensuring that quick-closeout is properly 
used.

Impact

    NASA certifies that this change to its regulations will have 
significant economic impact on a substantial number of small entities 
under the Regulatory Flexibility Act (5 U.S.C. 601 et seq.). This 
change does not impose any reporting or record keeping requirements 
subject to the Paperwork Reduction Act.

List of Subjects in 48 CFR Part 1842

    Government procurement.
Tom Luedtke,
Deputy Associate Administrator for Procurement.

    Accordingly, 48 CFR Part 1842 is amended as follows:
    1. The authority citation for 48 CFR Part 1842 continues to read as 
follows:

    Authority: 42 U.S.C. 2473(c)(1).

PART 1842--CONTRACT ADMINISTRATION


1842.708  [Amended]

    2. Section 1842.708 is revised to read as follows:


1842.708  Quick-closeout procedure.

    (a)(2)(ii) The 15 percent parameter does not apply to NASA 
contracts. Instead, perform a risk analysis that takes into 
consideration the contractor systems identified in FAR 
42.708(a)(2)(ii), as well as the concerns of the cognizant contract 
auditor, and any other pertinent information.

[FR Doc. 97-17309 Filed 7-3-97; 8:45 am]
BILLING CODE 7510-01-M