[Federal Register Volume 63, Number 56 (Tuesday, March 24, 1998)]
[Rules and Regulations]
[Pages 14039-14041]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-7595]


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NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Parts 1832 and 1852


Contract Financing

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

ACTION: Final rule.

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SUMMARY: This final rule revises several subparts in NASA's Federal 
Acquisition Regulation Supplement (NFS). This rule updates the 
designated points of responsibility to reflect the transfer of the 
finance policy function within the Headquarters Office of Procurement. 
This rule also provides clarification to ease the use of the NFS and 
reflects the extension of certain Agency class deviations.

EFFECTIVE DATE: March 24, 1998.

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

SUPPLEMENTARY INFORMATION:

Background

    The NASA Office of Procurement has undergone reorganization, 
resulting in the transfer of the policy responsibility

[[Page 14040]]

for contract financing from the Analysis Division (HC) to the Contract 
Management Division (HK). This rule revises the NFS to reflect this 
transfer of responsibility. Also, the coverage at 1832.412 concerning 
the FAR Advance Payments clause was found to be difficult to follow. 
The revision of that section and the creation of NASA clause 1852.232-
70 are aimed at providing greater clarity as to the modifications that 
should be made to the FAR clause. That clause also clarifies that 
Standard Form 272 and 272-A are to be submitted with the other 
information enumerated in the FAR 52.232-12 clause and its Alternate V, 
and that those forms are not just the means by which that information 
is to be submitted. In addition, the Small Business Technology Transfer 
(STTR) program was extended by Congress through September 30, 2001. 
This rule reflects the extension of the advance payments and 
incremental funding class deviations for that program to coincide with 
the period of Congress' extension.

Impact

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

List of Subjects in 48 CFR Parts 1832 and 1852

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

    Accordingly, 48 CFR 1832 and 1852 are amended as follows:
    1. The authority citation for 48 CFR Parts 1832 and 1852 continues 
to read as follows:

    Authority: 42 U.S.C. 2743(c)(1).

PART 1832--CONTRACT FINANCING


1832.402  [Amended]

    2. In section 1832.402, paragraph (e)(1) is revised to read as 
follows:


1832.402 General. (NASA supplements paragraph (e))

    (e)(1) The Director of the Headquarters Office of Procurement 
Contract Management Division (Code HK) is the approval authority for 
all advance payments except the following:
    (A) The procurement officer is the approval authority for non-fee 
bearing contracts with domestic entities when the cumulative contract 
value is $25,000,000 or less, and for all increases to such contracts 
over $25,000,000 previously approved by the Headquarters Office of 
Procurement as long as the advance payment amount outstanding at any 
time is not increased.
    (B) The contracting officer is the approval authority for the 
following actions. In these cases, a findings and determination (see 
FAR 32.410) is not required.
    (a) Small Business Innovation Research (SBIR) and Small Business 
Technology Transfer (STTR) Phase I contracts. A class deviation has 
been signed, effective through September 30, 2000 (for SBIRs) and 
September 30, 2001 (for STTRs), authorizing use of advance payments on 
these contracts. The contracting officer shall annotate the contract 
file that the deviation is on file at the NASA Headquarters Office of 
Procurement (Code HK).
    (b) Expendable launch vehicle (ELV) service contracts. 42 U.S.C. 
2459c authorizes advance payments for these contracts. The contracting 
officer shall document the contract file with the rationale for 
approving the use of advance payments.
* * * * *


1832.412  [Amended]

    3. Section 1832.412 is revised to read as follows:


1832.412  Contract clause. (NASA supplement paragraphs (e) and (f))

    (e) The contracting officer shall use Alternates IV and V when 
advance payments are provided on Phase I contracts of the Small 
Business Innovation Research (SBIR) or Small Business Technology 
Transfer (STTR) programs.
    (f) See 1832.412(e).


1832.412-70  [Added]

    4. Section 1832.412-70 is added to read as follows:


1832.412-70  NASA Contract clauses.

    When the clause at FAR 52.232-12 or its Alternates II or V are 
used, insert the clause at 1852.232-70, NASA Modification of FAR 
52.232-12.


1832.501-2  [Amended]

    5. Section 1832.501-2 is revised to read as follows:


1832.501-2  Unusual progress payments.

    The Director of the Headquarters Office of Procurement Contract 
Management Division (Code HK) is the approval authority for the use of 
unusual progress payments.


1832.502-2  [Amended]

    6. Section 1832.502-2 is revised to read as follows:


1832.502-2  Contract finance office clearance.

    The Director of the Headquarters Office of Procurement Contract 
Management Division (Code HK) is the approval authority for the actions 
at FAR 32.502-2, except the Associate Administrator for Procurement 
(Code HK) is the approval authority for any deviations addressed in FAR 
32.502-2(b).


1832.702-70  [Amended]

    7. In section 1832.702-70, paragraph (e) is revised to read as 
follows:


1832.702-70  NASA policy.

* * * * *
    (e) A class deviation from the conditions set forth in paragraphs 
1832.702-70 (a), (b) and (c) exists to permit incremental funding of 
contracts under Phase II of the Small Business Innovation Research 
(SBIR) Program (through September 30, 2000) and Phase II of the Small 
Business Technology Transfer (STTR) program (through September 30, 
2001). This deviation exists with the understanding that the contracts 
will be fully funded when funds become available.

PART 1852--SOLICITATION PROVISIONS AND CONTRACT CLAUSES


1852.232-70  [Added]

    8. Section 1852.232-70 is added to read as follows:


1852.232-70  NASA Modification of FAR 52.232-12.

    As prescribed at 1832.412-70, make the following modifications:

NASA Modification of FAR 52.232-12, March 1998

    (a) Basic Clause. (1) In paragraph (e), Maximum Payment, in the 
sentence that begins ``When the sum of,'' change the word ``When'' 
to lower case and insert before it: ``Unliquidated advance payments 
shall not exceed $____ at any time outstanding. In addition. * * 
*.''
    (2) In paragraph (m)(1), delete ``in the form prescribed by the 
administering office'' and substitute ``and Standard Form 272, 
Federal Cash Transactions Report, and, if appropriate, Standard Form 
272-A, Federal Cash Transactions Report Continuation.''
    (b) Alternate II (if incorporated in the contract). In paragraph 
(e), Maximum Payment, in the sentence that begins ``When the sum 
of,'' change the word ``When'' to lower case and insert before it: 
``Unliquidated advance payments shall not exceed $____ at any time 
outstanding. In addition. * * *.''
    (c) Alternate V (if incorporated in the contract). (1) 
Substitute the following for

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paragraph (b): ``(b) Use of funds. The Contractor may use advance 
payment funds only to pay for properly allocable, allowable, and 
reasonable costs for direct materials, direct labor, indirect costs, 
or such other costs approved in writing by the administering 
contracting office. Payments are subject to any restrictions in 
other clauses of this contract. Determinations of whether costs are 
properly allocable, allowable, and reasonable shall be in accordance 
with generally accepted accounting principles, subject to any 
applicable subparts of Part 31 of the Federal Acquisition 
Regulation, other applicable regulations referenced in Part 31, or 
subpart 1831.2.''
    (2) In paragraph (d), Maximum Payment, in the sentence that 
begins ``When the sum of,'' change the word ``When'' to lower case 
and insert before it: ``Unliquidated advance payments shall not 
exceed $____ at any time outstanding. In addition. * * *.''
    (3) In paragraph (j)(1), insert between ``statements,'' and 
``and'' ``together with Standard Form 272, Federal Cash Transactions 
Report, and, if appropriate, Standard Form 272-A, Federal Cash 
Transactions Report Continuation''
    (4) If this is a Phase I contract awarded under the SBIR or STTR 
programs, delete paragraph (a) and substitute the following: ``(a) 
Requirements for payment. Advance payments will be made under this 
contract upon receipt of invoices from the Contractor. Invoices 
should be clearly marked ``Small Business Innovation Research 
Contract'' or ``Small Business Technology Transfer Contract,'' as 
appropriate, to expedite payment processing. One-third of the total 
contract price will be available to be advanced to the contractor 
immediately after award, another one-third will be advanced three 
months after award, and the final one-third will be paid upon 
acceptance by NASA of the Contractor's final report. By law, full 
payment must be made no later than 12 months after the date that 
contract requirements are completed. The Contractor shall flow down 
the terms of this clause to any subcontractor requiring advance 
payments.''

(End of clause)

[FR Doc. 98-7595 Filed 3-23-98; 8:45 am]
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