[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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