NFS part 1843

PART 1843

CONTRACT MODIFICATIONS

SUBPART 1843.2

CHANGE ORDERS

1843.205 Contract clauses.

As authorized in the preface of clauses FAR 52.243-1--Changes-Fixed Price; FAR 52.243-2--Changes-Cost Reimbursement; and FAR 52.243-3--Changes-Time-and-Material or Labor-Hours, the period within which a contractor must assert its rights to an equitable adjustment may be varied not to exceed 60 calendar days.

1843.205-70 NASA contract clause.

(a) The contracting officer may insert in contracts a clause substantially the same as 1852.243-70, Engineering Change Proposals (ECP), when impact evaluation information is required. Paragraphs (c) and (d) of the basic clause and Alternate I of the clause shall be changed to reflect the specific type of contract. A local format may be substituted for the MIL-STD-973 format.

(b) If it is desirable to preclude a large number of small-dollar, contractor-initiated engineering changes and to reduce the administrative cost of reviewing them, the contracting officer shall use the clause with its Alternate I.

(c) If the contract is a cost-reimbursement contract, the contracting officer shall use the clause with its Alternate II.

1843.270 Originating and accepting engineering change proposals.

(a) Either party to the contract may originate engineering changes. The originator must submit to the contracting officer detailed technical, cost, and schedule information documenting the proposed change. This information will be used by the Government project manager in deciding whether or not to implement the change and by the contracting officer to price the change in advance, when possible.

(b) Contractual implementation of an approved ECP may occur by either a supplemental agreement or, if appropriate, as a written change order to the contract.

SUBPART 1843.3

FORMS

1843.301 Use of forms.

(a) FAR 43.301(a)(1) requires the use of Standard Form 30, Amendment of Solicitation/Modification of Contract, for administrative changes such as changes in accounting and appropriation data. Contract modifications should include only fund citations (i.e., accounting and appropriations data) applicable to the particular modification. The cumulative inception-to-date listing of funding citations for previous modifications is discouraged unless there is a contractual need requiring such a listing. Modifications

should include, as a minimum, the prior total funding, the change taking place, and a new total value.

(b) When an internal administrative change of funding citations relative to a contract is required, the official determining the need for the change shall request it, obtain applicable installation approvals, and then forward documentation to the financial management officer and the contracting officer to facilitate it. An administrative modification of the contract is not required unless it affects the billing or reporting requirements placed upon the contractor.

(c) These procedures do not reduce the contracting officer's responsibility for ensuring that obligations are made only on the basis of appropriated funds.

SUBPART 1843.70

UNDEFINITIZED CONTRACT ACTION

1843.7001 Definitions.

"Undefinitized contract action (UCA)" means a unilateral or bilateral contract modification or work/task order in which the final price or estimated cost and fee have not been negotiated and mutually agreed to by NASA and the contractor. (Issuance of letter contracts and modifications to letter contracts are governed by subpart 1816.6.)

1843.7002 Policy.

Undefinitized contract actions shall be executed by contracting officers on an exception basis and shall be limited to the Agency's minimum urgent requirements. The contract file for all UCAs shall be documented to justify issuance and shall include a Government estimate for the changed requirements.

1843.7003 Procedures

(a) Issuance of undefinitized contract actions with a Government estimated cost or price over $1,000,000 must be approved in writing by the Center Director, except that Space Station undefinitized contract actions with a Government estimate over $10,000,000 must be approved in writing by the Deputy Associate Administrator for Space Flight (Space Station). These approval authorities are not delegable. Issuance of undefinitized contract actions with a Government estimated cost or price less than or equal to $1,000,000 shall also be minimized but may be approved on an exception basis in accordance with Center procedures.

(b)(1) Undefinitized contract actions exceeding $1,000,000 approved by the Center Director shall be issued as bilateral agreements duly executed by an authorized representative of the contractor. These bilateral agreements shall set forth a ceiling price or "not to exceed" estimated cost figure for the changed contractual requirements. For fixed price contracts the negotiated price for the changed contract requirements shall not exceed the established ceiling price. In the case of cost type contracts any costs eventually negotiated for the changed requirements in excess of the "not to exceed" estimated cost figure shall be non-fee bearing. The ceiling price or "not to exceed" estimated cost figures shall be separately identified in the UCA instrument from any increases in the estimated cost or Limitation of Government Liability.

(2) The Center Director or Deputy Associate Administrator for Space Flight (Space Station) may waive the ceiling price or "not to exceed" estimated cost figure and bilateral agreement requirements prior to UCA issuance on the basis of urgency. This waiver authority is not delegable. Any waivers shall be documented in the contract file.

(c) The changed contractual requirements set forth in the UCA shall be clearly defined and shall be limited to the minimum effort required to satisfy urgent program requirements while a cost proposal is prepared, analyzed and negotiated.

(d) For undefinitized contract actions with a Government estimate greater than $1,000,000 and not excepted under subpart 1843.7004, a 180 day funding profile shall be obtained from the contractor and reviewed by the cognizant NASA personnel prior to execution of the undefinitized contract action.

(e) Undefinitized contract actions with a Government estimated cost or price greater than $1,000,000 shall include a requirement that the change shall be separately accounted for by the contractor to the degree necessary to provide the Contracting Officer visibility into actual costs incurred pending definitization. The Contracting Officer may waive this requirement for individual actions if there is a documented finding that such accounting procedures would not be cost effective. Any such waiver shall not affect existing NASA Form 533 or other financial reporting requirements set forth in the contract.

1843.7004 Exceptions

(a) Exceptions to the requirement for Center Director or Deputy Associate Administrator for Space Flight (Space Station) approval for issuance of undefinitized contract actions as specified in paragraph 1843.7003(a) are--

(1) Modifications to facilities contracts;

(2) Modifications to construction contracts using Construction of Facilities funding;

(3) Urgent modifications resulting from Shuttle manifest changes or that involve immediate issues of safety or damage/loss of property;

(4) Modifications to decrease the contract value; or

(5) Modifications to letter contracts.

(b) The contract file for any of the above modifications shall be documented to justify UCA issuance in addition to citing the appropriate exception to Center Director or Deputy Associate Administrator for Space Flight (Space Station) approval.

1843.7005 Definitization

(a) Undefinitized contract actions should be sufficiently complete and detailed as to enable the contractor to begin immediate preparation of a cost proposal for the changed requirement. The NASA goal is to definitize UCAs within 180 days from date of issuance. This goal in no way compromises the Agency's continuing requirement for sound cost analysis, arms-length negotiations, and fair and reasonable settlements.

(b) Whenever possible, pre-change study efforts or engineering change proposals (ECPs) shall be utilized to negotiate and definitize changes prior to issuance.