[Federal Register Volume 78, Number 209 (Tuesday, October 29, 2013)]
[Proposed Rules]
[Pages 64442-64446]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2013-25287]


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NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Parts 1815 and 1852

RIN 2700-AE13


NASA FAR Supplement: Proposal Adequacy Checklist

AGENCY: National Aeronautics and Space Administration.

ACTION: Proposed rule.

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SUMMARY: NASA is proposing to amend the NASA FAR Supplement (NFS) to 
incorporate a proposal adequacy checklist for proposals in response to 
solicitations that require the submission of certified cost or pricing 
data.

DATES: Interested parties should submit comments to NASA at the address 
below on or before December 30, 2013 to be considered in formulation of 
the final rule.

ADDRESSES: Interested parties may submit comments, identified by RIN 
number 2700-AE13 via the Federal eRulemaking Portal: http://www.regulations.gov. Follow the instructions for submitting comments. 
Comments may also be submitted to William Roets via email at 
[email protected].

FOR FURTHER INFORMATION CONTACT: William Roets, NASA, Office of 
Procurement, email: [email protected], or phone: 202-358-4483.

SUPPLEMENTARY INFORMATION:

A. Background

    This proposed rule supports the NASA Assistant Administrator for 
Procurement's ``Reducing Transaction Costs in NASA Procurements'' 
initiative by incorporating the requirement for a proposal adequacy 
checklist into the NFS at 1815.408-70(c), and associated solicitation 
provision at NFS 1852.215-85, to ensure offerors take responsibility 
for submitting thorough, accurate, and complete proposals. The 
provision will be included in solicitations that require the submission 
of certified cost or pricing data.

B. Executive Orders 12866 and 13563

    Executive Orders (E.O.s) 12866 and 13563 direct agencies to assess 
all costs and benefits of available regulatory alternatives and, if 
regulation is necessary, to select regulatory approaches that maximize 
net benefits (including potential economic, environmental, public 
health and safety effects, distributive impacts, and equity). E.O. 
13563 emphasizes the importance of quantifying both costs and benefits, 
of reducing costs, of harmonizing rules, and of promoting flexibility. 
This proposed rule is not a significant regulatory action under section 
3(f) of Executive Order 12866. This proposed rule is not a major rule 
under 5 U.S.C. 804.

C. Regulatory Flexibility Act

    NASA does not expect this proposed rule to have a significant 
economic impact on a substantial number of small entities within the 
meaning of the Regulatory Flexibility Act, 5 U.S.C. 601, et seq. 
However, an Initial Regulatory Flexibility Analysis has been performed 
and is summarized as follows:
    This proposed rule amends the NFS to add a checklist for NASA 
contractors to complete under solicitations that require the submission 
of certified cost or pricing data. This rule supports the NASA 
Assistant Administrator for Procurement's ``Reducing Transaction Costs 
in NASA Procurements'' initiative by increasing uniformity across NASA 
and minimizing local variations in this area which will decrease 
proposal preparation costs.
    The objective of this proposed rule is to ensure that offerors 
submit thorough, accurate, and complete proposals. By completing the 
checklist, offerors will be able to self-validate the adequacy of their 
proposals which will improve the quality of their initial proposal 
submissions. This will reduce the need for contractors to rework their 
initial proposal submissions which will save the Government time and 
resources in performing the evaluation of the proposal.
    The rule will apply to actions where certified cost or pricing data 
is required. Based on data collected in FPDS-NG for FY2010-2012, there 
are on average 1162

[[Page 64443]]

actions per year that met the criteria where the proposal adequacy 
checklist is to be utilized. On average, 462 of those actions were with 
small business concerns.
    This proposed rule imposes no new reporting requirements. The rule 
does not duplicate, overlap, or conflict with any other Federal rules. 
No alternatives were identified that would meet the objectives of the 
rule. Excluding the small number of small business concerns that may be 
subject to the rule would not be in the best interest of the small 
business concerns or the Government because the proposal adequacy 
checklist was created directly from requirements already in the Federal 
Acquisition Regulation. While the checklist does not add burden, it 
provides a useful tool for ensuring proposal adequacy.
    NASA invites comments from small business concerns and other 
interested parties on the expected impact of this proposed rule on 
small entities. NASA will also consider comments from small entities 
concerning the existing regulations in subparts affected by this 
proposed rule in accordance with 5 U.S.C. 610. Interested parties must 
submit such comments separately and should cite 5 U.S.C. 610 and RIN 
number 2700-AE13 in correspondence.

D. Paperwork Reduction Act

    This proposed rule contains information collection requirements 
that require the approval of the Office of Management and Budget under 
the Paperwork Reduction Act (44 U.S.C. Chapter 35). However, these 
changes to the NFS do not impose additional information collection 
requirements to the paperwork burden previously approved under OMB 
Control Number 9000-0013, entitled ``Cost or Pricing Data Exemption 
Information.''

List of Subjects in 48 CFR 1815 and 1852

    Government procurement.

William P. McNally,
Assistant Administrator for Procurement.
    Accordingly, 48 CFR parts 1815 and 1852 are proposed to be amended 
as follows:

PART 1815--CONTRACTING BY NEGOTIATION ACQUISITION

0
1. The authority citation for part 1815 continues to read as follows:

    Authority:  42 U.S.C. 2473(c)(1).
0
2. In section 1815.408-70, paragraph (c) is added to read as follows:


1815.408-70  NASA solicitation provisions and contract clauses.

* * * * *
    (c) When the solicitation requires the submission of certified cost 
or pricing data, the contracting officer shall include 1815.215-85, 
Proposal Adequacy Checklist, in the solicitation to facilitate 
submission of a thorough, accurate, and complete proposal.

PART 1852--SOLICITATION PROVISIONS AND CONTRACT CLAUSES

0
3. The authority citation for part 1852 continues to read as follows:

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

0
4. Clause 1852.215-85 is added to read as follows:


1852.215-85  Proposal Adequacy Checklist.

    As prescribed in 1815.408-70(c), use the following provision:

PROPOSAL ADEQUACY CHECKLIST

(XX/XX)

    The offeror shall complete and submit as part of their proposal 
the following checklist, providing location of requested 
information, or an explanation of why the requested information is 
not provided. In preparation of the offeror's checklist, offerors 
may elect to have their prospective subcontractors use the same or 
similar checklist as appropriate.

                                           Proposal Adequacy Checklist
----------------------------------------------------------------------------------------------------------------
                                                                                              If not provided
                                                                                              explain (may use
          References                      Submission item             Proposal page No.      continuation pages
                                                                                             traceable to this
                                                                                                 checklist)
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                                              General Instructions
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1. FAR 15.408, Table 15-2,      Is there a properly completed       .....................  .....................
 Section I Paragraph A.          first page of the proposal per
                                 FAR 15.408 Table 15-2 I.A or as
                                 specified in the solicitation?
2. FAR 15.408, Table 15-2,      Does the proposal identify the      .....................  .....................
 Section I Paragraph A(7).       need for Government-furnished
                                 material/tooling/test equipment?
                                 Include the accountable contract
                                 number and contracting officer
                                 contact information if known.
3. FAR 15.408, Table 15-2,      If your organization is subject to  .....................  .....................
 Section I Paragraph A(8).       Cost Accounting Standards (CAS),
                                 does the proposal identify the
                                 current status of your CAS
                                 Disclosure Statement? Does the
                                 proposal identify and explain
                                 notifications of noncompliance
                                 with Cost Accounting Standards
                                 Board or Cost Accounting
                                 Standards (CAS); any proposal
                                 inconsistencies with your
                                 disclosed practices or applicable
                                 CAS; and inconsistencies with
                                 your established estimating and
                                 accounting principles and
                                 procedures?
4. FAR 15.408, Table 15-2,      Does the proposal disclose any      .....................  .....................
 Section I, Paragraph C(1),      other known activity that could
 FAR 2.101, ``Cost or pricing    materially impact the costs?
 data''.                        This may include, but is not
                                 limited to, such factors as--
                                   (1) Vendor quotations;
                                   (2) Nonrecurring costs;          .....................  .....................
                                   (3) Information on changes in    .....................  .....................
                                    production methods and in
                                    production or purchasing
                                    volume;
                                   (4) Data supporting projections  .....................  .....................
                                    of business prospects and
                                    objectives and related
                                    operations costs;
                                   (5) Unit-cost trends such as     .....................  .....................
                                    those associated with labor
                                    efficiency;
                                   (6) Make-or-buy decisions;       .....................  .....................
                                   (7) Estimated resources to       .....................  .....................
                                    attain business goals; and

[[Page 64444]]

 
                                   (8) Information on management    .....................  .....................
                                    decisions that could have a
                                    significant bearing on costs.
5. FAR 15.408, Table 15-2,      Is an Index of all certified cost   .....................  .....................
 Section I Paragraph B.          or pricing data and information
                                 accompanying or identified in the
                                 proposal provided and
                                 appropriately referenced?
6. FAR 15.403-1(b)............  Are there any exceptions to         .....................  .....................
                                 submission of certified cost or
                                 pricing data pursuant to FAR
                                 15.403-1(b)? If so, is supporting
                                 documentation included in the
                                 proposal? (Note questions 18-20.)
7. FAR 15.408, Table 15-2,      Does the proposal disclose the      .....................  .....................
 Section I Paragraph C(2)(i).    judgmental factors applied and
                                 the mathematical or other methods
                                 used in the estimate, including
                                 those used in projecting from
                                 known data?
8. FAR 15.408, Table 15-2,      Does the proposal disclose the      .....................  .....................
 Section I Paragraph C(2)(ii).   nature and amount of any
                                 contingencies included in the
                                 proposed price?
9. FAR 15.408 Table 15-2,       Does the proposal explain the       .....................  .....................
 Section II, Paragraph A or B.   basis of all cost estimating
                                 relationships (labor hours or
                                 material) proposed on other than
                                 a discrete basis?
10. FAR 15.408, Table 15-2,     Is there a summary of total cost    .....................  .....................
 Section I Paragraphs D and E.   by element of cost and are the
                                 elements of cost cross-referenced
                                 to the supporting cost or pricing
                                 data? (Breakdowns for each cost
                                 element must be consistent with
                                 your cost accounting system,
                                 including breakdown by year.)
11. FAR 15.408, Table 15-2,     If more than one Contract Line      .....................  .....................
 Section I Paragraphs D and E.   Item Number (CLIN) or sub
                                 Contract Line Item Number (sub-
                                 CLIN) is proposed as required by
                                 the RFP, are there summary total
                                 amounts covering all line items
                                 for each element of cost and is
                                 it cross-referenced to the
                                 supporting cost or pricing data?
12. FAR 15.408, Table 15-2,     Does the proposal identify any      .....................  .....................
 Section I Paragraph F.          incurred costs for work performed
                                 before the submission of the
                                 proposal?
13. FAR 15.408, Table 15-2,     Is there a Government forward       .....................  .....................
 Section I Paragraph G.          pricing rate agreement (FPRA)? If
                                 so, the offeror shall identify
                                 the official submittal of such
                                 rate and factor data. If not,
                                 does the proposal include all
                                 rates and factors by year that
                                 are utilized in the development
                                 of the proposal and the basis for
                                 those rates and factors?
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                                                  Cost Elements
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                                             Materials and Services
----------------------------------------------------------------------------------------------------------------
14. FAR 15.408, Table 15-2,     Does the proposal include a         .....................  .....................
 Section II Paragraph A.         consolidated summary of
                                 individual material and services,
                                 frequently referred to as a
                                 Consolidated Bill of Material
                                 (CBOM), to include the basis for
                                 pricing? The offeror's
                                 consolidated summary shall
                                 include raw materials, parts,
                                 components, assemblies,
                                 subcontracts and services to be
                                 produced or performed by others,
                                 identifying as a minimum the
                                 item, source, quantity, and
                                 price.
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                                 Subcontracts (Purchased materials or services)
----------------------------------------------------------------------------------------------------------------
15. FAR 15.404-3(c), FAR        Per the thresholds of FAR 15.404-   .....................  .....................
 52.244-2.                       3(c), Subcontract Pricing
                                 Considerations, does the proposal
                                 include a copy of the applicable
                                 subcontractor's certified cost or
                                 pricing data?
16. FAR 15.408, Table 15-2,     Is there a price/cost analysis      .....................  .....................
 Note 1; Section II Paragraph    establishing the reasonableness
 A.                              of each of the proposed
                                 subcontracts included with the
                                 proposal?
                                If the offeror's price/cost         .....................  .....................
                                 analyses are not provided with
                                 the proposal, does the proposal
                                 include a matrix identifying
                                 dates for receipt of
                                 subcontractor proposal,
                                 completion of fact finding for
                                 purposes of price/cost analysis,
                                 and submission of the price/cost
                                 analysis?
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                                  Exceptions to Certified Cost or Pricing Data
----------------------------------------------------------------------------------------------------------------
17. FAR 52.215-20, FAR 2.101,   Has the offeror submitted an        .....................  .....................
 ``commercial item''.            exception to the submission of
                                 certified cost or pricing data
                                 for commercial items proposed
                                 either at the prime or
                                 subcontractor level, in
                                 accordance with provision 52.215-
                                 20?
                                   a. Has the offeror specifically  .....................  .....................
                                    identified the type of
                                    commercial item claim (FAR
                                    2.101 commercial item
                                    definition, paragraphs (1)
                                    through (8)), and the basis on
                                    which the item meets the
                                    definition?

[[Page 64445]]

 
                                   b. For modified commercial       .....................  .....................
                                    items (FAR 2.101 commercial
                                    item definition paragraph
                                    (3)); did the offeror classify
                                    the modification(s) as either--
 
                                     i. A modification of a type    .....................  .....................
                                      customarily available in the
                                      commercial marketplace
                                      (paragraph (3)(i)); or
                                     ii. A minor modification       .....................  .....................
                                      (paragraph (3)(ii)) of a
                                      type not customarily
                                      available in the commercial
                                      marketplace made to meet
                                      Federal Government
                                      requirements not exceeding
                                      the thresholds in FAR 15.403-
                                      1(c)(3)(iii)(B)?
                                   c. For proposed commercial       .....................  .....................
                                    items ``of a type'', or
                                    ``evolved'' or modified (FAR
                                    2.101 commercial item
                                    definition paragraphs (1)
                                    through (3)), did the
                                    contractor provide a technical
                                    description of the differences
                                    between the proposed item and
                                    the comparison item(s)?
18. FAR 15.408, Table 15-2,     Does the proposal support the       .....................  .....................
 Section II Paragraph A(1).      degree of competition and the
                                 basis for establishing the source
                                 and reasonableness of price for
                                 each subcontract or purchase
                                 order priced on a competitive
                                 basis exceeding the threshold for
                                 certified cost or pricing data?
----------------------------------------------------------------------------------------------------------------
                                          Interorganizational Transfers
----------------------------------------------------------------------------------------------------------------
19. FAR 15.408, Table 15-2,     For inter-organizational transfers  .....................  .....................
 Section II Paragraph A.(2).     proposed at cost, does the
                                 proposal include a complete cost
                                 proposal in compliance with Table
                                 15-2?
20. FAR 15.408, Table 15-2,     For inter-organizational transfers  .....................  .....................
 Section II Paragraph A(1).      proposed at price in accordance
                                 with FAR 31.205-26(e), does the
                                 proposal provide an analysis by
                                 the prime that supports the
                                 exception from certified cost or
                                 pricing data in accordance with
                                 FAR 15.403-1?
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                                                  Direct Labor
----------------------------------------------------------------------------------------------------------------
21. FAR 15.408, Table 15-2,     Does the proposal include a time    .....................  .....................
 Section II Paragraph B.         phased (i.e.; monthly, quarterly)
                                 breakdown of labor hours, rates
                                 and costs by category or skill
                                 level? If labor is the allocation
                                 base for indirect costs, the
                                 labor cost must be summarized in
                                 order that the applicable
                                 overhead rate can be applied.
22. FAR 15.408, Table 15-2,     For labor Basis of Estimates        .....................  .....................
 Section II Paragraph B.         (BOEs), does the proposal include
                                 labor categories, labor hours,
                                 and task descriptions, (e.g.;
                                 Statement of Work reference,
                                 applicable CLIN, Work Breakdown
                                 Structure, rationale for
                                 estimate, applicable history, and
                                 time-phasing)?
23. FAR subpart 22.10.........  If covered by the Service Contract  .....................  .....................
                                 Labor Standards statute (41
                                 U.S.C. chapter 67), are the rates
                                 in the proposal in compliance
                                 with the minimum rates specified
                                 in the statute?
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                                                 Indirect Costs
----------------------------------------------------------------------------------------------------------------
24. FAR 15.408, Table 15-2,     Does the proposal indicate the      .....................  .....................
 Section II Paragraph C.         basis of estimate for proposed
                                 indirect costs and how they are
                                 applied? (Support for the
                                 indirect rates could consist of
                                 cost breakdowns, trends, and
                                 budgetary data.)
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                                                   Other Costs
----------------------------------------------------------------------------------------------------------------
25. FAR 15.408, Table 15-2,     Does the proposal include other     .....................  .....................
 Section II Paragraph D.         direct costs and the basis for
                                 pricing? If travel is included
                                 does the proposal include number
                                 of trips, number of people,
                                 number of days per trip,
                                 locations, and rates (e.g.
                                 airfare, per diem, hotel, car
                                 rental, etc.)?
26. FAR 15.408, Table 15-2,     If royalties exceed $1,500 does     .....................  .....................
 Section II Paragraph E.         the proposal provide the
                                 information/data identified by
                                 Table 15-2?
27. FAR 15.408, Table 15-2,     When facilities capital cost of     .....................  .....................
 Section II Paragraph F.         money is proposed, does the
                                 proposal include submission of
                                 Form CASB-CMF or reference to an
                                 FPRA/FPRP and show the
                                 calculation of the proposed
                                 amount?
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                                  Formats for Submission of Line Item Summaries
----------------------------------------------------------------------------------------------------------------
28. FAR 15.408, Table 15-2,     Are all cost element breakdowns     .....................  .....................
 Section III.                    provided using the applicable
                                 format prescribed in FAR 15.408,
                                 Table 15-2 III? (or alternative
                                 format if specified in the
                                 request for proposal)

[[Page 64446]]

 
29. FAR 15.408, Table 15-2,     If the proposal is for a            .....................  .....................
 Section III Paragraph B.        modification or change order,
                                 have cost of work deleted
                                 (credits) and cost of work added
                                 (debits) been provided in the
                                 format described in FAR 15.408,
                                 Table 15-2.III.B?
30. FAR 15.408, Table 15-2,     For price revisions/                .....................  .....................
 Section III Paragraph C.        redeterminations, does the
                                 proposal follow the format in FAR
                                 15.408, Table 15-2.III.C?
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                                                      Other
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31. FAR 16.4..................  If an incentive contract type,      .....................  .....................
                                 does the proposal include offeror
                                 proposed target cost, target
                                 profit or fee, share ratio, and,
                                 when applicable, minimum/maximum
                                 fee, ceiling price?
32. FAR 16.203-4 and FAR        If Economic Price Adjustments are   .....................  .....................
 15.408 Table 15-2, Section      being proposed, does the proposal
 II, Paragraphs A, B, C, and D.  show the rationale and
                                 application for the economic
                                 price adjustment?
33. FAR 52.232-28.............  If the offeror is proposing         .....................  .....................
                                 Performance-Based Payments did
                                 the offeror comply with FAR
                                 52.232-28?
34. FAR 15.408(n), FAR 52.215-  Excessive Pass-through Charges-     .....................  .....................
 22, FAR 52.215-23.              Identification of Subcontract
                                 Effort: If the offeror intends to
                                 subcontract more than 70% of the
                                 total cost of work to be
                                 performed, does the proposal
                                 identify: (i) the amount of the
                                 offeror's indirect costs and
                                 profit applicable to the work to
                                 be performed by the proposed
                                 subcontractor(s); and (ii) a
                                 description of the added value
                                 provided by the offeror as
                                 related to the work to be
                                 performed by the proposed
                                 subcontractor(s)?
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    (End of provision)

[FR Doc. 2013-25287 Filed 10-28-13; 8:45 am]
BILLING CODE 7510-01-P