[Federal Register Volume 79, Number 38 (Wednesday, February 26, 2014)]
[Rules and Regulations]
[Pages 10687-10691]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-04210]



[[Page 10687]]

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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: Final rule.

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SUMMARY: NASA has adopted as final, without change, a proposed rule 
amending 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: Effective Date: March 28, 2014.

FOR FURTHER INFORMATION CONTACT: Bill Roets, NASA, Office of 
Procurement, Contract Management Division (Suite 5K34); (202) 358-4483; 
email: [email protected].

SUPPLEMENTARY INFORMATION:

A. Background

    A proposed rule was published on October 29, 2013 (78 FR 64442) 
that supported 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. Discussion and Analysis

I. Summary of Significant Changes

    Based on a review of the public comments discussed below, NASA has 
concluded that no change to the proposed rule is necessary.

II. Analysis of Public Comment

    NASA received comments from one respondent on the proposed rule. 
Comments are discussed below.
a. Overly Burdensome
    Comment: Respondent opined that the proposed rule passed the 
administrative burden and shifted the associated costs directly onto 
the contractor which was inappropriate. Respondent suggested, as an 
alternative, that solicitations require standardized table of contents 
with a proposal.
    Response: This rule does not impose additional requirements over 
what is already required under the conditions when certified cost or 
pricing data is required. This provision is a single uniform tool that 
is applicable across NASA to promote consistency in compliance with FAR 
Table 15-2.
b. Applicability Clarification
    Comment: Respondent was concerned that this rule would be applied 
to programs that have a phased application process (e.g. Phase A, Phase 
B). Respondent requested clarification that the rule would only apply 
to the full (Phase B) application.
    Response: The checklist is only utilized when certified cost or 
pricing data is required per FAR 15.403-4. In the example, if the Phase 
A acquisition did not require certified cost or pricing data, use of 
the checklist would not be required by this rule.

C. 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 is not a significant regulatory action and, therefore, was not 
subject to review under section 6(b) of E.O. 12866, Regulatory Planning 
and Review, dated September 30, 1993. This rule is not a major rule 
under 5 U.S.C. 804.

D. Regulatory Flexibility Act

    A final regulatory flexibility analysis has been prepared 
consistent with the Regulatory Flexibility Act, at 5 U.S.C. 601, et. 
seq., and is summarized as follows:
    This final rule amends the NASA FAR Supplement (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.
    The objective of the rule is to ensure that offerors submit 
thorough, accurate, and complete proposals. By filling out the 
checklist, offerors will be able to self-validate their proposals.
    No issues were raised by the public in response to the initial 
regulatory flexibility analysis.
    No comments were filed by the Chief Counsel for Advocacy of the 
Small Business Administration in response to the rule.
    The final rule will apply to solicitations, for which certified 
cost or pricing data are required. Based on data collected in the 
Federal Procurement Data System for FY2010-2012, there are on average 
1162 actions per year that met the criteria where the proposal adequacy 
checklist is to be utilized. On average, 462 of those actions are with 
small business concerns.
    No alternatives were determined; the proposal adequacy checklist 
was created directly from requirements already in the FAR.

E. Paperwork Reduction Act

    This final 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 amended as follows:

PART 1815--CONTRACTING BY NEGOTIATION

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.

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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. Section 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 (MAR 2014)

    The offeror shall complete 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
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                                                                                                                        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, Section   Is there a properly completed first page of the
 I Paragraph A.                       proposal per FAR 15.408 Table 15-2 I.A or as
                                      specified in the solicitation?
2. FAR 15.408, Table 15-2, Section   Does the proposal identify the need for
 I Paragraph A(7).                    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, Section   If your organization is subject to Cost
 I Paragraph A(8).                    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, Section   Does the proposal disclose any other known
 I, Paragraph C(1).                   activity that could materially impact the
                                      costs?
FAR 2.101, ``Cost or pricing 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
                                     (8) Information on management decisions that
                                      could have a significant bearing on costs.
5. FAR 15.408, Table 15-2, Section   Is an Index of all certified cost or pricing
 I Paragraph B.                       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, Section   Does the proposal disclose the judgmental
 I Paragraph C(2)(i).                 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, Section   Does the proposal disclose the nature and
 I Paragraph C(2)(ii).                amount of any contingencies included in the
                                      proposed price?
9. FAR 15.408 Table 15-2, Section    Does the proposal explain the basis of all cost
 II, Paragraph A or B.                estimating relationships (labor hours or
                                      material) proposed on other than a discrete
                                      basis?
10. FAR 15.408, Table 15-2, Section  Is there a summary of total cost by element of
 I Paragraphs D and E.                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.)

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11. FAR 15.408, Table 15-2, Section  If more than one Contract Line Item Number
 I Paragraphs D and E.                (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, Section  Does the proposal identify any incurred costs
 I Paragraph F.                       for work performed before the submission of
                                      the proposal?
13. FAR 15.408, Table 15-2, Section  Is there a Government forward pricing rate
 I Paragraph G.                       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
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14. FAR 15.408, Table 15-2, Section  Does the proposal include a consolidated
 II Paragraph A.                      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)
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15. FAR 15.404-3(c)................  Per the thresholds of FAR 15.404-3(c),
FAR 52.244-2.......................   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, Note 1;  Is there a price/cost analysis establishing the
 Section II Paragraph A.              reasonableness 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
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17. FAR 52.215-20..................  Has the offeror submitted an exception to the
FAR 2.101, ``commercial item''.....   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?
                                     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)?

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18. FAR 15.408, Table 15-2, Section  Does the proposal support the degree of
 II Paragraph A(1).                   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?
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                                                              INTERORGANIZATIONAL TRANSFERS
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19. FAR 15.408, Table 15-2, Section  For inter-organizational transfers proposed at
 II Paragraph A.(2).                  cost, does the proposal include a complete
                                      cost proposal in compliance with Table 15-2?
20. FAR 15.408, Table 15-2, Section  For inter-organizational transfers proposed at
 II Paragraph A(1).                   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
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21. FAR 15.408, Table 15-2, Section  Does the proposal include a time phased (i.e.;
 II Paragraph B.                      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, Section  For labor Basis of Estimates (BOEs), does the
 II Paragraph B.                      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
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24. FAR 15.408, Table 15-2, Section  Does the proposal indicate the basis of
 II Paragraph C.                      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
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25. FAR 15.408, Table 15-2, Section  Does the proposal include other direct costs
 II Paragraph D.                      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, Section  If royalties exceed $1,500 does the proposal
 II Paragraph E.                      provide the information/data identified by
                                      Table 15-2?
27. FAR 15.408, Table 15-2, Section  When facilities capital cost of money is
 II Paragraph F.                      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
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28. FAR 15.408, Table 15-2, Section  Are all cost element breakdowns provided using
 III.                                 the applicable format prescribed in FAR
                                      15.408, Table 15-2 III? (or alternative format
                                      if specified in the request for proposal).
29. FAR 15.408, Table 15-2, Section  If the proposal is for a modification or change
 III Paragraph B.                     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, Section  For price revisions/redeterminations, does the
 III Paragraph C.                     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 15.408      If Economic Price Adjustments are being
 Table 15-2, Section II, Paragraphs   proposed, does the proposal show the rationale
 A, B, C, and D.                      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)..................  Excessive Pass-through Charges--Identification
FAR 52.215-22......................   of Subcontract Effort: If the offeror intends
FAR 52.215-23......................   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. 2014-04210 Filed 2-25-14; 8:45 am]
BILLING CODE 7510-01-P