[Federal Register Volume 59, Number 143 (Wednesday, July 27, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-17490]
[[Page Unknown]]
[Federal Register: July 27, 1994]
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NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
48 CFR Parts 1842 and 1853
Corrections and Clarification to NASA FAR Supplement Coverage on
Disallowance of Costs
AGENCY: Office of Procurement, Procurement Policy Division, National
Aeronautics and Space Administration (NASA).
ACTION: Final rule.
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SUMMARY: This rule clarifies who the responsible NASA contracting
officer is when more than one contract is affected. This action is
necessary to assure compliance with the Federal Acquisition Regulation,
ensure that NASA coordinates internally disallowance of costs and to
make the NFS more understandable. The effect of this action will be
better coordination within NASA.
EFFECTIVE DATE: July 27, 1994.
FOR FURTHER INFORMATION CONTACT:
Mr. Joe Le Cren, Code HC, (202) 358-0444.
SUPPLEMENTARY INFORMATION:
Background
NASA FAR Supplement (NFS) 1842.801(a) requires the contracting
officer to take action after receipt of a NASA Form 456, Notice of
Contract Costs Suspended or Disapproved, or a DCAA Form 1, Notice of
Costs Suspended and/or Disapproved under Cost Reimbursement Contracts.
However, when more than one contract is cited on the notice, the NFS
does not specify which contracting officer has responsibility for the
action. NFS 1842.801 is changed to clarify that the contracting officer
with the most dollars affected is responsible for coordination with the
other affected contracting officers, including those of other federal
agencies. The cross-reference at 1842.801(b) is also revised to
identify the correct cite. In addition, 1853.242-72 is revised to
include the correct prescription cite. Other minor changes have also
been made for efficiency or clarification.
Impact
NASA certifies that this regulation 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.). This rule does not
impose any information collection subject to 44 U.S.C. chapter 35.
List of Subjects in 48 CFR Parts 1842 and 1853
Government procurement.
Thomas S. Luedtke,
Deputy Associate Administrator for Procurement.
Accordingly, 48 CFR Parts 1842 and 1853 are amended as follows:
PART 1842--[AMENDED]
1. The authority citation for part 1842 continues to read as
follows:
Authority: 42 U.S.C. 2473(c)(1).
2. Section 1842.801 is revised to read as follows:
1842.801 Disallowance of costs.
(a) Following a prompt and careful review of the facts and
circumstances leading the auditor to initiate the NASA Form 456, Notice
of Contract Costs Suspended and/or Disapproved, and after coordination
with other NASA and federal agency contracting officers administering
contracts with the same contractor under which a NASA Form 456 or a
DCAA Form 1 has been issued for the same items of cost, the NASA
contracting officer shall take one of the following actions:
(1) Countersign the NASA Form 456 disapproving the costs.
(2) Countersign the NASA Form 456 suspending the costs.
(3) Issue a new NASA Form 456 suspending the costs rather than
disapproving them pending resolution of the issues.
(4) Have the contractor issue a new voucher removing the costs in
question from its claim and return the NASA Form 456 to the auditor
unsigned.
(5) Return the unsigned NASA Form 456 to the auditor with a
detailed explanation of why the suspension or disapproval is not being
countersigned, and process the contractor's claim for payment.
(b) When more than one NASA contract is affected by a notice, the
NASA contracting officer with the largest amount of contract dollars
affected is responsible for coordination on the NASA Form 456 with the
other affected contracting officers, including those of other federal
agencies, listed in the notice.
(c) The NASA contracting officer, when in agreement with the NASA
Form 456 initiated by the auditor, shall assign a notice number and
shall countersign the form. An original and three copies (which
includes two acknowledgement copies, one each for return to the
contracting officer and the auditor) of the form shall be sent to the
contractor by certified mail, return receipt requested; one copy shall
be attached to the Standard Form 1034 and each copy of the Standard
Form 1034A (see 1842.7101(c)) on which the deduction for the
suspension/disapproval is made, and one copy shall be sent to the
auditor.
(d) The total amount suspended or disapproved, as shown on the NASA
Form 456, shall be inserted in the Differences block of the Standard
Form 1034 and 1034A, citing the applicable NASA Form 456.
(e)(1) If the amount of the deduction is more than the amount of
the public voucher, the installment method of deduction shall be
applied to the current and subsequent public vouchers until the amount
is fully liquidated. The deductions on any voucher may not exceed the
voucher amount to avoid processing of a voucher in a credit amount.
Public voucher(s) with zero amounts must be forwarded to the fiscal or
financial management office for appropriate action.
(2) If deductions are in excess of contractor claims, recovery may
be made through a direct refund from the contractor, in the form of a
check payable to NASA, or by a set-off deduction from the voucher(s)
submitted by the contractor under any other contract, unless those
contracts contain a ``no set-off'' provision. If a set-off is affected,
the voucher(s) from which the deduction is made should be annotated to
identify the contract and appropriation affected and the applicable
NASA Form 456.
PART 1853--[AMENDED]
3. The authority citation for part 1853 continues to read as
follows:
Authority: 42 U.S.C. 2473(c)(1).
4. Section 1853.242-72 is revised to read as follows:
1853.242-72 Notifications (NASA Form 456).
NASA Form 456, Notice of Contract Costs Suspended and/or
Disapproved. NASA Form 456, prescribed at 1842.801, will be used to
notify the contractor of any suspended/disallowed contract costs.
[FR Doc. 94-17490 Filed 7-26-94; 8:45 am]
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