TABLE OF CONTENTS
SUBPART 1815.4 SOLICITATION AND RECEIPT OF PROPOSALS AND
QUOTATIONS
1815.402 General.
1815.405 Solicitations for information or planning purposes.
1815.405-1 General.
1815.405-71 Procedure.
1815.405-72 Special considerations.
1815.406 Preparing requests for proposals (RFP's) and requests for quotations (RFQ's).
1815.406-2 Part I--The Schedule.
1815.406-4 Part III--List of documents, exhibits, and other
attachments.
1815.406-5 Part IV--Representations and instructions.
1815.406-70 Instructions for technical proposal and business
management proposal submission.
1815.406-71 Solicitation cover page.
1815.407 Solicitation provisions.
1815.407-70 NASA solicitation provisions.
1815.412 Late proposals, modifications, and withdrawals of proposals.
1815.413 Disclosure and use of information before award.
1815.413-2 Alternate II.
SUBPART 1815.5 UNSOLICITED PROPOSALS
1815.502 Policy.
1815.503 General.
1815.504 Advance guidance.
1815.504-70 Unsolicited proposal brochure.
1815.505 Content of unsolicited proposals.
1815.505-70 Unsolicited renewal proposals.
1815.506 Agency procedures.
1815.507 Contracting methods.
1815.508 Prohibitions.
1815.508-70 NASA prohibitions.
1815.509 Limited use of data.
1815.509-70 Limited use of proposals.
1815.570 Foreign proposals.
SUBPART 1815.6 SOURCE SELECTION
1815.608 Proposal evaluation.
1815.608-70 Technical evaluation.
1815.608-71 Automatic data processing equipment.
1815.608-72 Uncompensated overtime.
1815.609 Competitive range.
1815.610 Written or oral discussion.
1815.611 Best and Final Offers.
1815.613 Alternative source selection procedures.
1815.613-70 General.
1815.613-71 Evaluation and negotiation of procurements conducted in accordance with source evaluation board (SEB) procedures.
1815.613-72 NASA solicitation provision.
SUBPART 1815.7 MAKE-OR-BUY PROGRAMS
1815.704 Items and work included.
1815.706 Evaluation, negotiation, and agreement.
1815.708 Contract clause.
1815.708-70 NASA contract clause.
SUBPART 1815.8 PRICE NEGOTIATION
1815.804 Cost or pricing data.
1815.804-3 Exemptions from or waiver of submission of certified cost or pricing data.
1815.805-4 Technical analysis.
1815.805-470 Responsibilities of NASA requirements personnel.
1815.805-5 Field pricing support.
1815.807 Prenegotiation objectives.
1815.807-70 Content of the prenegotiation position memorandum.
1815.807-71 Installation reviews.
1815.807-72 Headquarters reviews.
1815.808 Price negotiation memorandum.
1815.870 Subcontract price redetermination.
1815.870-1 General.
1815.870-2 NASA contract clause.
1815.902 Policy.
1815.903 Contracting officer responsibilities.
1815.903-70 Contracting officer authority for negotiating architect-engineer fees.
1815.970 NASA structured approach for profit or fee objective.
1815.970-1 Contractor effort.
1815.970-2 Other factors.
1815.970-3 Facilities capital cost of money.
1815.971 Payment of profit or fee under letter contracts.
SUBPART 1815.10 PREAWARD, AWARD, AND POSTAWARD
NOTIFICATIONS, PROTESTS, AND MISTAKES
1815.1003 Notification to successful offeror.
1815.1004 Debriefing of unsuccessful offerors.
1815.1004-1 Scope of subpart.
1815.1004-2 Policy.
1815.1004-3 Designated officials.
1815.1004-4 Procedures.
1815.7001 NASA Ombudsman Program.
1815.7002 Commerce Business Daily announcements, solicitations and contracts.
1815.402 General.
Before issuance of the solicitation, NASA procurement officers may, by written determination and without power of redelegation, authorize the use of facsimile proposals for individual procurements.
1815.405 Solicitations for information or planning purposes.
1815.405-1 General.
(a) Solicitations for information or planning purposes are particularly useful when a procurement can be properly negotiated only after potential offerors have had an opportunity to become familiar with a large quantity of data, or when it would be desirable to have industry participation in formulating and reviewing complex specifications or requirements.
(b) Solicitations for information or planning purposes may not be used as a means for prequalifying offerors.
(c) Requirements for automatic data processing equipment or support services to perform specified operations or achieve certain results may be suitable for advance review and comment by the private sector when diverse approaches to accomplishing mission objectives may be feasible. The material made available in advance may vary from a comprehensive draft of a proposed requirement to a partial draft; e.g., statement of work and/or specifications or reports.
1815.405-71 Procedure.
(a) In making advance information available to industry, sufficient time should be allowed to permit potential sources an opportunity, commensurate with the task, to prepare and submit a response to the solicitation for information or planning purposes. Invitations for bids and requests for proposals may not be used for these purposes. Solicitations for information or planning purposes may be issued only with the procurement officer's prior approval (see FAR 15.405-1).
(b) Solicitations for information or planning purposes shall at least (1) request an expression of interest in the contemplated requirement and (2) designate a time and place for submitting responses. Each solicitation shall define, as explicitly as possible, the information the Government desires and indicate whether it is contemplated that the solicitation will be followed by a conference. After approval by the procurement officer, the solicitation shall be forwarded to potential sources and synopsized according to FAR Subpart 5.2.
(c) Each source responding to the solicitation shall be advised of the details of any pending conference. The conference, when provided for, shall be conducted by procurement personnel and should be attended by technical, legal, and other personnel as appropriate. Care must be taken not to prejudice any future competition. All sources shall be furnished identical information in connection with the proposed requirement. Care shall be taken to safeguard any information received in confidence.
1815.405-72 Special considerations.
The procedure in 1815.405-71 does not constitute procurement in the usual sense, where the Government is fully aware of its requirements and has incorporated them in a formal solicitation or firms are invited to make known their interest in a procurement by responding to a presolicitation notice. Under the solicitation for information or planning purposes procedure, interested firms may suggest changes in a proposed specification or statement of work; propose alternatives in concept, method, design, system integration, and the like that might result in lower costs without sacrificing performance; or recommend changes in other requirements regarding the product or service involved. Care should be exercised in this connection to avoid potential conflict of interest situations. (See FAR Subpart 9.5.)
1815.406 Preparing requests for proposals (RFP's) and requests for quotations (RFQ's).
(a) Requests for proposals (RFP's), including amendments to them, shall be prepared by the contracting office, with assistance from technical or other offices as required, and be issued by the contracting officer or an authorized representative. The RFP has a twofold purpose: (1) to convey to prospective offerors the information they need to prepare a proposal properly, and (2) to solicit the information that procurement and technical personnel need to appraise proposals.
(b) When advisable, particularly in the case of research and development, proposals shall be requested in two parts: (1) an unpriced technical proposal, and (2) a cost proposal cross-referenced to the technical proposal (see 1815.406-70).
(c) Technical and contracting personnel will mutually agree on page limitations for their respective portions of an RFP. Unless approved in writing by the Procurement Officer, the page limitation for the contracting portion of an RFP (all sections except Section C, Description/specifica-tions/work statement) shall not exceed 150 pages, and the page limitation for the technical portion (Section C) shall not exceed 200 pages. Attachments to the RFP count as part of the section to which they relate. In determining page counts, a page is defined as one side of a sheet, 8 1/2" x 11", with at least one inch margins on all sides, using not smaller than 12 characters per inch or equivalent type. Foldouts count as an equivalent number of 8 1/2" x 11" pages. The metric standard format most closely approximating the described standard 8 1/2" x 11" size may also be used.
(d) Page limitations shall also be established for proposals submitted in competitive procurements. Accordingly, technical and contracting personnel will mutually agree on page limitations for each portion of the proposal. Unless a different limitation is approved in writing by the Procurement Officer, the total initial proposal, excluding title pages, tables of content, and cost/price information, shall not exceed 500 pages using the page definition of 1815.406(c). Firm page limitations shall also be established for Best and Final Offers (BAFOs), if requested. The appropriate BAFO page limitations should be determined by considering the complexity of the procurement and the extent of any written or oral discussions. The same BAFO page limitations shall apply to all offerors. Pages submitted in excess of the specified limitations for the initial proposal and BAFO will not be evaluated by the Government and will be returned to the offeror.
1815.406-2 Part I - The Schedule.
Section C, Description/specifications/work statement.
(a) In source evaluation board procurements, when detailed program or project support plans will be required as part of the offeror's proposal, but will not be important discriminators in the evaluation process and cover only technical or management support to the primary product or service being offered, describe the requirements for those plans in separate appendices to the statement of work (see 1815.406-70(a)(7)).
(b) In solicitations for cost-reimbursement support services contracts requiring price quotations, include available data regarding the quantity and quality of supplies and services required, set forth in terms of work hours of identifiable categories of labor, including experience and related qualifications, and in terms of quantities of supplies, all exclusive of costs (see 1815.406-70(b)(8)).
1815.406-4 Part III--List of documents, exhibits, and other attachments.
Section J, List of attachments. List here all of the documents, exhibits, and other attachments making up the solicitation package; give form number, name, date, and number of pages for each document; give type and identifier (for example, "Exhibit A"), name, and number of pages for each exhibit, appendix, or other attachment (for example: work frequency schedules, work breakdown structures, work statements, specifications, special requirements, or other documents too lengthy to be conveniently written into the solicitation proper).
1815.406-5 Part IV--Representations and instructions.
(a) Section K, Representations, certifications, and other statements of offerors or quoters. See 1845.104(b).
(b) Section L, Instructions, conditions, and notices to offerors or quoters.
(1) Indicate the method and format of price quotation desired (fixed-price or cost-reimbursement, if known at the time), including a reference to the necessity for cost or price breakdown.
(2) Describe the information required to support proposed prices; e.g., subcontract structure, purchasing system, royalty, and cost or price information (see FAR Subparts 15.7 and 15.8, and FAR Part 44).
(3) Include instructions for disposing of drawings and specifications supplied with the solicitation.
(4) Include a statement of information required to facilitate evaluation of technical and financial capabilities and a statement covering special technical capabilities any contractors must possess.
(5) Include an instruction reflecting desirability of a separation between the offeror's business management proposal and technical proposal. For evaluation purposes, separate proposals, if time permits, should be received; therefore the format should be flexible enough to permit separate requirements (see 1815.406-70).
(6) State that the solicitation does not commit the Government to pay any cost incurred in submitting the offer or in making necessary studies or designs for its preparation, nor to contract for services or supplies.
(7) Include a statement that "PROPOSALS MUST SET FORTH FULL, ACCURATE, AND COMPLETE INFORMATION AS REQUIRED BY THE SOLICITATION (INCLUDING ATTACHMENTS). THE PENALTY FOR MAKING FALSE STATEMENTS IN PROPOSALS IS PRESCRIBED IN 18 U.S.C. 1001."
(8) See 1846.470.
1815.406-70 Instructions for technical proposal and business management proposal submission.
When it is contemplated that the contract will exceed $1,000,000 (or, if appropriate, lesser amounts), the solicitation should require submission of the information in paragraphs (a) and (b) of this section, if applicable, in addition to any other information specified elsewhere in this section 1815.406.
(a) Technical proposal. Proposals should include the following:
(1) The method by which the offeror proposes to solve the technical problems of the project, other than information to be furnished elsewhere as a part of program or project support plan summaries (see paragraph (7) of this section).
(2) Any specific exceptions to proposed technical requirements.
(3) A statement of background experience in fields relating to the procurement.
(4) Names and resumes of experience of key technical personnel who will be employed on the project and the extent to which each will participate, together with an organization chart of the segment of the offeror's organization that will be directly assigned to the project, listing names and job categories.
(5) Description and location of the company-owned research, test, and production equipment and facilities available for use on the project, accompanied by a separate list of any additional facilities or equipment required in the performance of the work, and a separate list of existing Government facilities available to the contractor and
required for use on the project.
(6) Hourly time estimates (without pricing information) by labor class for each phase or segment of the project, the extent to which these estimates are based on the use of employees presently on the offeror's payrolls who will be available for the work as required, and an indication of the number and types of personnel necessary to be hired and arrangements made to obtain them.
(7) For procurements described in 1815.406-2(a)--
(i) As part of the original proposal, estimates of the cost and work force to perform major tasks under each requirement separately identified, and a summary of the major task elements to perform each requirement; and
(ii) A statement by each offeror that it is understood that, if selected for negotiations, the offeror will ultimately be required to furnish a detailed program or project support plan that will be negotiated into the contract prior to award.
(b) Business management proposal. Proposals should include the following:
(1) The organization proposed for carrying out the project, including organization charts showing the interrelationship of business, technical, and subcontract management and an indication of all levels of operation and management, from lower levels through intermediate management to top-level management.
(2) A summary of the experience of all key personnel who will conduct the managerial affairs of the project.
(3) Contractual procedures proposed for the project to effect administrative and engineering changes, describing any differences from existing procedures.
(4) The extent to which the offeror has invested corporate funds in research and development work in the project area or directly related areas and plans for future expenditures for such work; and the extent, if any, to which the offeror is willing to participate in the cost of the project.
(5) A statement as to--
(i) The capacity at which company-owned research, test, and production equipment and facilities required to perform the work are currently working;
(ii) The extent to which they could handle the additional workload imposed by this project;
(iii) The cost of any additional facilities (as defined at (FAR) 48 CFR 45.301) required to perform the work and how the costs are to be charged, with information as to whether the facilities will be contractor-furnished or Government-furnished and, if contractor-furnished, the alternatives considered (e.g., short-term lease, long-term lease with option to transfer the lease to a third party, purchase), including the long and short term benefits of each alternative, a description of any unique requirements or arrangements involved with each alternative, as well as the reasons for the alternative selected, a copy of the proposed lease or purchase agreement, identification of all costs included in the lease and ownership alternatives considered; and
(iv) The value of existing Government facilities available to the offeror and required for use on the project, showing the Government agencies and facilities contracts involved.
(6) A statement of past performance and experience, including--
(i) A list of Government contracts in excess of $1,000,000 received in the past three years or currently in negotiation involving mainly research and development work, showing each contract number, the Government agency placing the contract, the type of contract, and a brief description of the work;
(ii) For each cost-reimbursement contract listed pursuant to paragraph (i) of this section, a list of amounts of cost overruns or underruns, reasons for them, and percentage of fixed fee;
(iii) For each contract listed pursuant to paragraph (i) of this section, a record of contract completion as against completion date anticipated at the time of entering into the contract, with explanations for completion delays; and
(iv) An identification and explanation of any terminations for default or convenience.
(7) A balance sheet for the offeror's last fiscal year, accompanied by a profit and loss statement.
(8) A detailed cost or price proposal, furnished as a separate, detachable element of the business management proposal and based on the effort described or estimated in the solicitation. This cost or price proposal is a requirement for the proposal to be responsive. If the offeror believes the work can be accomplished more efficiently with organizational plans, staffing, management, or equipment differing from those indicated in the solicitation, it may also submit an alternative proposal supported by a detailed cost or price proposal (see 1815.406-2, Section C, (b)); this alternative proposal must be in addition to, not in lieu of, the basic proposal.
1815.406-71 Solicitation cover page.
The contracting officer may include a cover page on solicitations if it conforms to the following policies:
(a) The cover should not unnecessarily repeat or paraphrase any part of the solicitation; rather, it should only describe subject material, except as otherwise provided in this section.
(b) The cover may draw the offeror's attention to specific limitations on who may submit offers, such as the Small Business Set-Aside provision.
(c) The cover may include a general reminder that representations and certifications must be carefully read and completed, but should not include specific listings of individual provisions from Section K, Representations and Certifications.
(d) The cover may include specific listings of clauses that are not located in Section K, but which contain boxes or fill-ins that must be completed as part of the offer.
(e) The cover must contain a statement that in the event of a conflict between the cover and the solicitation, the solicitation takes precedence.
(f) The cover may include a very brief description or "executive summary" of the requirement. This summary should be no longer than the CBD synopsis, and preferably shorter; if the project title makes clear what is being procured, that should be sufficient. Generally, only major procurements should utilize a summary.
1815.407 Solicitation provisions.
(a) The provision at FAR 52.215-10, Late Submissions, Modifications, and Withdrawals of Proposals, prescribed in FAR 15.407(c), shall not be used in solicitations for the Small Business Innovation Research (SBIR) program or for broad agency announcements listed in 1835.016. See instead 1815.407-70(b).
(b) The provision at FAR 52.215-12, Restriction on Disclosure and Use of Data, prescribed in FAR 15.407(c), shall not be used in NASA solicitations. See instead 1815.407-70(a).
1815.407-70 NASA solicitation provisions.
(a) The contracting officer shall insert in RFP's and RFQ's (but not in solicitations for information or planning purposes) the provision at 1852.215-72, Restriction on Use and Disclosure of Proposal/Quotation Information (Data). (See also 1815.509-70(a)).
(b) In accordance with 1815.412, the contracting officer shall use the provision at 1852.215-73, Late Submissions, Modifications, and Withdrawals of Proposals (AO and SBIR Programs), in lieu of the provision at FAR 52.215-10 in Announcements of Opportunity issued pursuant to Subpart 1870.1 and in Small Business Innovation Research (SBIR) solicitations. This provision allows the project office to accept late proposals or proposal modifications and late best and final offers if, in the selection official's judgment, to do so is in the Government's best interest.
(c) The contracting officer may insert a provision substantially as stated at 1852.215-74, Alternate Proposals, in competitive requests for proposals if receipt of alternate proposals would benefit the Government. See FAR 52.215-13(d).
(d) In accordance with 1815.406-5(b)(7), the contracting officer shall insert the provision at 1852.215-75, Expenses Related to Offeror Submissions, in all requests for proposals.
(e) In accordance with 1815.406-5(b)(8), the contracting officer shall insert the provision at 1852.215-76, False Statements, in all requests for proposals to advise offerors of the penalty for making false statements in proposals.
(f) The contracting officer shall insert the provision at 1852.215-77, Preproposal/Pre-bid Conference, in competitive requests for proposals and invitations for bids where the Government intends to conduct a preproposal or pre-bid conference. Insert the appropriate specific information relating to the conference. Supplemental information, such as an agenda summary and whether a tour is included, may be identified in "Other Information."
(g) The contracting officer shall insert the provision at 1852.215-80, Disposal of Unsuccessful Proposals, in competitive requests for proposals.
(h) For grouping items in the solicitation in contemplation of an aggregate award, see 1814.201-670(b).
(i) For requiring full quantities to be proposed, see 1814.201-670(c).
(j) The contracting officer shall insert the provision at 1852.215-81, Proposal Page Limitations, in all competitive requests for proposals.
(k) The contracting officer shall insert the provision at 1852.215-82, Offeror Oral Presentations, in competitive requests for proposals when the Government intends to allow offerors to make oral presentations prior to commencement of the Government's formal evaluation.
1815.412 Late proposals, modifications and withdrawals of proposals.
For broad agency announcements listed in 1835.016 and SBIR Phase I and Phase II solicitations--
(a) Proposals, or modifications to them, received from qualified firms after the latest date specified for receipt may be considered if a significant reduction in cost to the Government is probable or if there are significant technical advantages, as compared with proposals previously received. In such cases, the project office shall investigate the circumstances surrounding the submission of the late proposal or modification, evaluate its content, and submit written recommendations and findings to the selection official or a designee as to whether there is an advantage to the Government in considering the proposal.
(b) The selection official or a designee shall determine whether to consider the proposal.
(c) Offerors may withdraw proposals any time before award, provided the conditions in paragraph (b) of the provision at 1852.215-73, Late Submissions, Modifications, and Withdrawals of Proposals (AO and SBIR Programs), are satisfied.
1815.413 Disclosure and use of information before award.
(a) The alternate procedures at FAR 15.413-2 shall be used for NASA procurements in lieu of those prescribed at FAR 15.413-1. The policies and procedures of FAR 15.413 and NFS 1815.413-2 shall apply both before and after award. The notice at FAR 15.413-2(e) shall be placed on the cover sheet of all proposals, whether solicited or unsolicited. (See 1805.303-70(a)(1)(iii) regarding release of the names of firms submitting offers.)
(b) During evaluation proceedings, whether or not a source evaluation board is used, NASA personnel participating in any way in the evaluation may not reveal any information concerning the evaluation to anyone not also participating, and then only to the extent that the information is required in connection with the evaluation. When non-NASA personnel participate, they shall be instructed to observe these restrictions. (Information shall be provided to unsuccessful offerors in accordance with FAR 15.1004 and 1815.1004. See also 1815.413-2.)
1815.413-2 Alternate II.
(a) General. This section prescribes the policy and procedures pertaining to the use of individuals from outside the Government as participants in the proposal evaluation process. This section does not cover the use of contractors to assist or support the evaluation process. The references in FAR 15.413-2 to the provision at FAR 52.215-12 shall be considered to be references to the provision at 1852.215-72.
(b) Policy. It is NASA policy to have proposals evaluated by the most competent technical and management sources available. Appropriate proposal evaluation resources will normally be available from within the Government. However, from time-to-time it may be necessary to disclose proposal information to non-Government evaluators.
(c) Approval to release proposal outside the Government.
(1) Except as provided in paragraph (c)(2) of this section, only the Associate Administrator for Procurement or a designee, with the concurrence of the Office of General Counsel, is authorized, pursuant to FAR 15.413-2(f)(1), to disclose proposal information outside the Government.
(2) Proposal information contained in the following classes of proposals may be disclosed with the prior written approval of a NASA official one level above the NASA program official responsible for overall conduct of the evaluation:
(i) NASA Announcements of Opportunity proposals;
(ii) unsolicited proposals;
(iii) NASA Research Announcement proposals;
(iv) SBIR and STTR proposals; and
(v) any proposal information released to JPL personnel for evaluation.
(3) The written approvals required by paragraphs (c)(1) and (c)(2) of this section shall be provided to the contracting officer before the actual release of the proposal information. As a minimum, the approval shall:
(i) identify the precise proposal information being released;
(ii) identify the person receiving the proposal information and evidence of their appointment as a special government employee, or a statement of the applicable exception under paragraph (d)(3) of this section;
(iii) provide a justification of the need for disclosure of the proposal information to the non-Government evaluator(s); and
(iv) provide a statement that a signed "Agreement and Conditions for Evaluation of Proposals (August 1993)," in accordance with paragraph (e) of this section, will be obtained prior to release of the proposal to the evaluator.
(4) If JPL personnel, in evaluating proposal information released to them by NASA, must obtain assistance from non-JPL, non-Government evaluators, JPL must obtain written approval from the Associate Administrator for Procurement, in compliance with paragraphs (c)(1) and (c)(3) of this section, before releasing the information; except that information from the following classes of proposals may be disclosed outside JPL with a prior written approval, in compliance with paragraphs (c)(2) and (c)(3) of this section:
(i) NASA Announcements of Opportunity proposals;
(ii) unsolicited proposals;
(iii) NASA Research Announcement proposals; and
(iv) SBIR and STTR proposals.
(d) Appointing non-Government evaluators as special Government employees.
(1) Except as provided in paragraph (d)(3) of this section, non-Government participants in proposal evaluation proceedings, including employees of JPL, shall be appointed as special Government employees.
(2) Appointment as a Special Government employee is a separate action from the approval required by paragraph (c) of this section and may be processed concurrently. Appointment as a special Government employee shall be made by:
(i) the NASA Headquarters personnel office when the release of proposal information is to be made by a NASA Headquarters office; or
(ii) the Field Installation personnel office when the release of proposal information is to be made by the Field Installation.
(3) Non-Government evaluators need not be appointed as special Government employees when they evaluate:
(i) NASA Announcements of Opportunity proposals;
(ii) unsolicited proposals;
(iii) NASA Research Announcement proposals; and
(iv) SBIR and STTR proposals.
(e) Agreements. The NASA official approving the disclosure of any proposal information to a non-Government evaluator, including employees of JPL, shall, prior to such disclosure, require each non-Government evaluator to sign the following "Agreement and Conditions for Evaluation of Proposals (April 1993)," and to complete and sign a "Procurement Integrity Certification for Procurement Officials" (Optional Form 333), in accordance with FAR 3.104-12.
(1) The recipient agrees to use proposal information for NASA evaluation purposes only. This limitation does not apply to information that is otherwise available without restrictions to the Government, another competing contractor, or the public.
(2) The recipient agrees that the NASA proposal cover sheet notice (FAR 15.413-2(e) and NFS 1815.413(a)), and any notice that may have been placed on the proposal by its originator, shall be applied to any reproduction or abstract of any proposal information furnished.
(3) Upon completion of the evaluation, the recipient agrees to return all copies of proposal information or abstracts, if any, to the NASA office that initially furnished the proposal information for evaluation.
(4) Unless authorized in writing by the NASA official releasing the proposal information, the recipient agrees not to contact either the business entities originating the proposals or any of their employees, representatives, or agents concerning any aspect of the proposal information or extracts covered by this agreement.
(5) The recipient agrees to review his or her financial interests relative to the entities whose proposal information NASA furnishes for evaluation. At any time the recipient becomes aware that he or she or a person with a close personal relationship (household family members, business partners, or associates) has or acquires a financial interest in the entities whose proposal information is subject to this agreement, the recipient shall immediately advise the NASA official releasing the proposal information, protect the proposal information, and cease evaluation activities pending a NASA decision resolving the conflict of interest.
(6) I understand that the term "leave the Government" in the last sentence of the Procurement Integrity Certification for Procurement Officials, Optional Form 333, means "cease to function as a procurement official."
Signature:_____________
Name typed or
printed:______________
Date:________________
(f) Affixing of a protection notice. The official authorized to disclose proposal information shall review each proposal or the extracted item of proposal information that is to be released and ensure that the notice at FAR 15.413-2(e) (See 1815.413(a)) is affixed to each proposal or the extracted item of proposal information before it is disclosed.
1815.502 Policy.
NASA will foster and encourage the submission of unique and innovative unsolicited proposals relevant to agency mission requirements by expeditious and equitable handling of all unsolicited proposals.
1815.503 General.
(a) Submission to other agencies or JPL. NASA will not accept for formal evaluation unsolicited proposals initially submitted to another agency or to the Jet Propulsion Laboratory (JPL) without the offeror's express consent.
(b) Transferring proposals. When a reviewing official determines that an unsolicited proposal is not related to NASA's mission or may be of interest to other agencies or to JPL in addition to NASA, the proposal control officer may identify for the offeror other agencies whose missions may bear a relationship to the subject matter of the unsolicited proposal. NASA shall not respond to an unsolicited proposal by transferring it to another agency or JPL for action without the offeror's written consent.
(c) Relationship to award. An unsolicited proposal may result in the award of a contract, a grant, a cooperative agreement, or other agreement. If a grant or cooperative agreement is used, the NASA Grant and Cooperative Agreement Handbook (NHB 5800.1) applies.
1815.504 Advance guidance.
1815.504-70 Unsolicited proposal brochure.
The Office of Procurement (Code HK) is responsible for preparing for public use a brochure titled "Guidance for the Preparation and Submission of Unsolicited Proposals," which shall be provided without charge by procurement and other NASA officials in response to requests for proposal submission information. The brochure, issued pursuant to FAR 15.504, constitutes NASA's single, official, general-purpose guidance document for public use in submitting unsolicited proposals. A deviation is required for use of any modified or summarized version of the brochure or for alternate means of general dissemination of unsolicited proposal information. The Headquarters Office of Procurement (Code HK) is responsible for internal distribution of the brochure.
1815.505 Content of unsolicited proposals.
1815.505-70 Unsolicited renewal proposals.
Renewal proposals, (i.e., those for the extension or augmentation of current contracts) are subject to the same FAR and NFS regulations, including the requirements of the Competition in Contracting Act, as are proposals for new contracts. Unsolicited renewal proposals within the scope of an open NASA Research Announcement (NRA) shall be evaluated in the same manner as unsolicited proposals described in 1815.506(b).
1815.506 Agency procedures.
(a) NASA unsolicited-proposal coordinating offices.
(1) NASA Headquarters and each NASA field installation shall designate an organizational entity as its unsolicited-proposal coordinating office for receiving and coordinating the handling and evaluation of unsolicited proposals in accordance with the policies and procedures of FAR Subpart 15.5, this Subpart 1815.5, and NHB 5800.1.
(2) Each installation shall establish procedures for handling proposals initially received by other offices within the installation. Misdirected proposals shall be forwarded by the coordinating office to the proper installation. Field installation coordinating offices are also responsible for providing guidance to potential offerors regarding the appropriate NASA officials to contact for general mission-related inquiries or other preproposal discussions.
(b) Relationship to open NRAs. An unsolicited proposal for a new effort, identified by an evaluating office as being within the scope of an open NRA, shall be evaluated as a response to that NRA under 1835.016-70(e), provided that the evaluating office can either (i) state that the proposal is not at a competitive disadvantage or (ii) give the offeror an opportunity to amend the unsolicited proposal to ensure compliance with the applicable NRA proposal preparation instructions. If these conditions cannot be met, the proposal must be evaluated separately.
(c) Reconsideration. An appropriately revised submission that is responsive to comments contained in an initial determination of inadequacy under FAR 15.506-1 shall be reconsidered by NASA officials.
(d) Information requirements. Coordinating offices shall keep records of unsolicited proposals received and shall provide prompt status information to requestors. These records shall include, at a minimum, the number of unsolicited proposals received, funded, and rejected during the fiscal year; the identity of the offerors; and the office to which each was referred. The numbers shall be broken out by source (large business, small business, university, or nonprofit institution).
1815.508 Prohibitions.
FAR 15.508(b) shall not apply to NASA; see instead 1815.508-70.
1815.508-70 NASA prohibitions.
Information (data) in unsolicited proposals furnished to the Government is to be used for evaluation purposes only. Disclosure outside the Government for evaluation is permitted only to the extent authorized by, and in accordance with procedures in, FAR 15.413-2 and 1815.413.
1815.509 Limited use of data.
FAR 15.509 shall not apply to NASA. See instead 1815.509-70.
1815.509-70 Limited use of proposals.
(a) The provision at 1852.215-72, Restriction on Use and Disclosure of Proposal/Quotation Information (Data), is applicable to unsolicited proposals.
(b) If an unsolicited proposal is received with a more restrictive legend than made applicable by paragraph (a) of this section, the procedures of FAR 15.413-2(c) apply.
(c) Upon receipt in the coordinating office, the Government notice in FAR 15.413-2(e) shall be placed on the cover sheet of all unsolicited proposals.
(d) Unsolicited proposals shall be evaluated outside the Government only to the extent authorized by, and in accordance with the procedures prescribed in, FAR 15.413-2(f) and 1815.413.
(e) If a request is made under the Freedom of Information Act for any information contained in an unsolicited proposal, the procedures of FAR 15.413-2(g) apply.
1815.570 Foreign proposals.
Unsolicited proposals from foreign sources are subject to NMI 1362.1, Initiation and Development of International Cooperation in Space and Aeronautical Programs.
1815.608 Proposal evaluation.
The authority in FAR 15.608(b) to determine in writing that rejection of all proposals received in response to a solicitation is in the public interest is delegated to the contracting officer.
1815.608-70 Technical evaluation.
(a) Technical evaluation should include consideration of--
(1) The offeror's understanding of the scope of the work as shown by the scientific and technical approach proposed;
(2) The availability and competence of experienced engineering, scientific, or other technical personnel;
(3) The availability of necessary research, test, and production facilities;
(4) Experience or pertinent novel ideas in the specific branch of science or technology involved;
(5) The offeror's willingness to devote its resources to the proposed work with appropriate diligence; and
(6) The offeror's proposed method of achieving the reliability required.
(b) In making this evaluation, technical personnel may be given access to portions of the business proposals upon request. After evaluation and preparation of written findings by the technical personnel, proposals shall be returned to the negotiator. The contracting officer shall review the documentation supporting the written findings of the technical personnel to determine that such documentation is adequate and complete.
1815.608-71 Automatic data processing equipment.
In evaluating proposals containing a significant amount of cost for automatic data processing equipment (ADPE), the contracting officer should obtain from the offeror a feasibility study and a lease-versus-purchase study covering the acquisition of such equipment or service. The contracting officer shall obtain the recommendations of the price analyst and appropriate ADPE technical personnel as to the adequacy of the studies and the offeror's determinations resulting from the studies. Particular attention should be given to proposals containing a high dollar amount for renting ADPE or complete systems to be used solely for performing the contract. Current Office of Management and Budget criteria (NHB 2410.1, Information Processing Resources Management) should be used, when applicable, as a guide in evaluating the offeror's studies. Contractors should be encouraged to--
(a) Use ADPE machine time available within a reasonable geographic distance;
(b) Use telecommunications links to remote Government-owned or -leased ADPE systems; and
(c) Purchase ADPE in preference to leasing the equipment when financial advantage is the sole or overriding factor.
1815.608-72 Uncompensated overtime.
(a) The contracting officer shall conduct a risk assessment of any proposal received for technical and professional services that includes unrealistically low labor rates, or uses a high level of uncompensated overtime (as defined in the provision at 48 CFR 1852.237-72, Identification of Uncompensated Overtime). Such practices on the part of the contractor may jeopardize its ability to successfully perform contract requirements due, for example, to its inability to hire or retain qualified personnel. Such a risk assessment shall be performed as part of the technical evaluation and considered in proposal evaluation (see 48 CFR (FAR) 22.11 and 48 CFR 1837.102(b)).
(b) The risk assessment should consider factors such as --
(1) the number of hours that current employees have been accustomed to working, and the normal number of work hours for the local industry;
(2) the turnover rates for the firm and for the industry in the firm's geographical area;
(3) whether employees involved in uncompensated overtime share directly in the firm's profits; e.g., through employee-ownership or a profit-sharing plan;
(4) whether the contract period of performance is short, or whether uncompensated overtime will be used for only a relatively short period of time;
(5) whether the firm uses approximately the same level of uncompensated overtime in its non-government business;
(6) any potential for decline in quality or safety both during performance and in any deliverable produced; and
(7) the ability of the contractor to respond to an emergency requiring additional effort.
1815.609 Competitive range.
For competitive range determinations under formal source selection procedures, see 1815.613-71(b)(4) and 1870.303, App. I, subparagraph 406.7.a.
1815.610 Written or oral discussion.
FAR 15.610(c)(2) is not applicable to NASA competitive negotiated procurements. The limited discussion procedures described in FAR 15.613 and 1815.613 shall be used instead.
1815.611 Best and Final Offers.
For competitive procurements of $25 million or more, approval of the Associate Administrator for Procurement (Code HS) is required before reopening discussions and requesting additional best and final offers. For competitive procurements with values less than $25 million, approval of the Procurement Officer is required.
1815.613 Alternative source selection procedures.
1815.613-70 General.
The source selection procedures in FAR 15.610, as modified by FAR 15.613 and 1815.613 to limit discussions with offerors, apply to all NASA competitive negotiated procurements except those conducted under the following procedures:
(a) Announcements of Opportunity (see 1870.102, App. I).
(b) NASA Research Announcements (see 1835.016-70 and 1870.203, App. I).
(c) The Small Business Innovative Research (SBIR) program and the Small Business Technology Transfer (STTR) pilot program under the authority of the Small Business Act (15 U.S.C. 638).
(d) Architect and Engineering (A&E) services (see FAR 36.6 and 1836.6).
1815.613-71 Evaluation and negotiation of procurements conducted in accordance with source evaluation board (SEB) procedures.
Unless one of the exceptions in 1815.613-70(a) - (d) applies, the formal SEB procedures of 1870.303, App. I, shall be followed in all competitive negotiated procurements of $25 million or more (including the value of multiple awards, options, and later phases of the same project). The formal SEB procedures may be used in lesser valued procurements at the discretion of the Procurement Officer.
1815.613-72 NASA solicitation provisions.
(a) The provision at 1852.215-70, Increases in Estimated Costs, shall be included in all RFP's to be evaluated pursuant to SEB procedures, if award of a cost-reimbursement contract (with or without incentive arrangements) is contemplated. The purpose of this provision is to advise offerors selected for final negotiation that they may not unilaterally increase their estimated costs except for the reasons cited in the provision. Government negotiators are cautioned that when the second exception in the provision applies, there may be instances in which such increases in costs do not warrant additional fee.
(b) The contracting officer shall insert the provision at 1852.215-83, Alternate Method of Scoring Proposals, in all solicitations using formal SEB procedures.
1815.704 Items and work included.
Make-or-buy programs should not include items or work efforts estimated to cost less than $500,000.
1815.706 Evaluation, negotiation, and agreement.
The make-or-buy program review by the installation's small and disadvantaged business utilization specialist and the SBA representative (see FAR 15.706(b)) should be concurrent with the contracting officer's review. When urgent circumstances preclude this or if the small and disadvantaged business specialist or SBA representative fails to respond on a timely basis, the contracting officer shall include an explanatory statement in the contract file and transmit copies to the specialist and the representative.
1815.708 Contract clause.
1815.708-70 NASA contract clause.
(a) The contracting officer shall insert the provision at 1852.215-78, Make-or-Buy Program Requirements, in solicitations requiring make-or-buy programs as provided in FAR 15.703. This provision shall be used in conjunction with the clause at FAR 52.215-21, Changes or Additions to Make-or-Buy Program. The contracting officer may add an additional paragraph(s) identifying any other information required in order to evaluate the program.
(b) The contracting officer shall insert the clause at 1852.215-79, Price Adjustment for "Make-or-Buy" Changes, in contracts that include FAR 52.215-21 with its Alternate I or II. Insert in the appropriate columns the items that will be subject to a reduction in the contract value.
1815.804 Cost or pricing data.
1815.804-3 Exemptions from or waiver of submission of certified cost or pricing data.
(a)(1) The term "lowest evaluated price," as used in FAR 15.804-3(b), is defined to include all of the factors (for example, mission suitability, cost, past performance, etc.) used in the evaluation of proposals (but see paragraph (a)(2) of this section).
(2) In order for adequate price competition to exist, cost or price must be a substantial factor in the evaluation of proposals. Cost or price shall be considered a substantial factor if the source selection will be based on the most advantageous offer to the Government, price or cost or other factors considered, and cost or price, although not necessarily the determinative factor, will contribute significantly to the source selection decision.
(3) The adequate price competition exemption is applicable to both fixed-price and cost-reimbursement type procurements.
(i) The use of this exemption for a cost-reimbursement procurement requires the careful exercise of judgment on the part of the contracting officer based on the application of the guidance in FAR 15.804-3(b) and the NFS to the facts of each procurement. The instances when its use under cost-reimbursement procurements would be appropriate should be limited. One reason is that, unlike fixed-price type contracts, where the final cost to the Government is set at the negotiated contract amount, in cost-reimbursement contracts, the contract amount is only an estimate of the Government's final cost. As a consequence, the failure to obtain certified cost or pricing data could result in a competing contractor intentionally underestimating its costs for the purpose of winning the award, which could then cause the actual contract costs to significantly exceed those proposed.
(ii) If and when negotiations conducted with a successful offeror after receipt of Best and Final Offers result in a substantial change in that offeror's price, the validity of any adequate price competition exemption which previously applied could be nullified, regardless of contract type.
(4) When the decision is made to apply the adequate price competition exemption, that decision shall be documented in the contract file. In addition, for cost-reimbursement procurements, that document shall be signed by the procurement officer and a copy provided to the Analysis Division, Code HC.
(b) When an exemption is granted under FAR 15.804-3(e)(2) for repetitive submissions of catalog items, Government approval of the exemption claim shall state the effective period, usually not more than one year, and require the contractor to furnish any later information that might raise a question as to the exemption's continuation.
(c) When exempting submission under FAR 15.804-3(e)(3), the contracting officer shall document the reasons for the exemption. For example, if the item being procured is similar to a commercial item, only an explanation of a price differential may be needed. If the fact of substantial sales to the general public is well known, the actual sales prices, but not the quantity of sales, may be required.
(d) The authority in FAR 15.804-3(i) to waive the requirement for cost or pricing data is delegated to the Associate Administrator for Procurement, without power of redelegation. Set forth below is a sample format for the determination and findings to be made by the Assistant Administrator for Procurement to waive the requirement for submission and certification of cost or pricing data as required by 10 U.S.C. 2306a(b). Requests for waivers shall be addressed to NASA Headquarters, Analysis Division, Code HC, and shall include the name and telephone number of the contracting officer, a copy of the contractor's refusal to submit and/or certify cost or pricing data, a discussion of the contracting officer's efforts to obtain the data and/or certification, and the basis for the contracting officer's determination of price reasonableness.
On the basis of the following findings and determination, the requirement for submitting certified cost or pricing data described below may be waived pursuant to the authority of 10 U.S.C. 2306a(b), as implemented by NASA FAR Supplement 1815.804-3(d).
1. The (1) proposes to enter into a contract with (2) for the procurement of (3) .
2. Pursuant to FAR 15.804-2, the proposed contractor is required to submit certified cost or pricing data. However, waiver of submission of the certified cost or pricing data described below is justified for the reasons indicated: (4)
The requirement for submission of certified cost or pricing data described in the above findings for the proposed procurement is hereby waived.
Associate Administrator
for Procurement
Date
NOTES --
(1) Name of installation.
(2) Name of proposed contractor.
(3) Brief description of supplies or services.
(4) Identification of the cost or pricing data requirements to be waived. The waiver may be partial, for example, limited to a particular subcontractor. Also describe the circumstances and conditions that make the proposed procurement an exceptional case, and state the reasons justifying the proposed waiver.
(e)(1) NASA and the Canadian Department of Defense Production (DDP) have agreed that a letter of agreement between DDP and the U.S. Military Departments will also apply to NASA contracts with the Canadian Commercial Corporation (CCC), an agency of the Government of Canada.
(2) The CCC, in the letter of agreement, provides its assurance of the fairness and reasonableness of the proposed prices, and also provides for follow-up audit activity where appropriate to help insure that excess profits are found and refunded to NASA. The integrity of the representations of assurance made by the agents of the Canadian Government can be assumed.
(3) The review and audit practices of the Government of Canada, the price assurance representations, and the adjustments rendered where profits are excessive are considered to satisfy the requirements of 10 U.S.C. 2306a. Therefore, NASA has waived the requirement for certification of cost or pricing data submitted by the CCC during the period April 1, 1990 through March 31, 1996. This waiver applies only to the certification and does not waive the requirement for submission of cost or pricing data.
1815.805-4 Technical analysis.
1815.805-470 Responsibilities of NASA requirements personnel.
NASA requirements personnel are responsible for conducting a technical evaluation of proposals to determine whether the supplies or services offered will meet specifications. In addition, when a cognizant contract administration office is not requested to perform the technical analysis portion of a field pricing report in accordance with FAR 15.805-5, the analysis will be the responsibility of NASA requirements personnel.
1815.805-5 Field pricing support.
(a) A field pricing report shall be requested and obtained in accordance with FAR 15.805-5(a)(1), except that for cost-reimbursement contracts, the threshold for obtaining a field pricing report is $1,000,000. A field pricing report is a technical report (prepared by either the cognizant DCMC ACO or NASA requirements person, except see 1815.805-5(e)) and an audit report by the cognizant contract audit activity.
(b) Whenever a field pricing report is required and a technical report or audit report is not obtained because available data are considered adequate for a determination of price reasonableness, the contracting officer shall document the contract file with the basis of the decision.
(c) When the contracting officer requires an audit report by the auditor but has determined that a technical report by the cognizant ACO is not required, the contracting officer should address the request directly to the cognizant audit office. The ACO shall be provided an information copy of this request.
(d) When input from the ACO or auditor involves merely a verification of information, contracting officers are encouraged to obtain this verification by direct telephone contact with the cognizant office and shall record it in the contract file.
(e) When the thresholds at 1815.805-5(a) are met and the cost proposal is for a product of a follow-on nature, notwithstanding any other provision of subsection 1815.805-5, a complete field pricing report shall be requested from the cognizant contract administration office. The report will include, but not be limited to, actuals incurred under the previous contract, learning experience, technical and production analysis, and subcontract proposal analysis.
1815.807 Prenegotiation objectives.
Before conducting negotiations requiring installation or Headquarters review, contracting officers or their representatives shall prepare a prenegotiation position memorandum setting forth the technical, business, contractual, pricing, and other aspects to be negotiated.
1815.807-70 Content of the prenegotiation position memorandum.
The prenegotiation position memorandum (PPM) should fully explain the contractor and Government positions. Since the PPM will ultimately become the basis for negotiation, it should be structured to track to the price negotiation memorandum (see FAR 15.808 and 1815.808). In addition to the information described in FAR 15.807 and, as appropriate, 15.808(a), the PPM should address the following subjects, as applicable, in the order presented:
(a) Introduction. Include a description and a history of the procurement and a history of prior procurements for the same or similar items. Address the extent of competition and its results. Identify the contractor and place of performance (if not evident from the description of the procurement). Document compliance with law, regulations and policy, including JOFOC, synopsis, method of contracting D&F, EEO compliance, and current status of contractor systems (see FAR 15.808(a)(4)). In addition, the negotiation schedule should be addressed and the Government negotiating team members identified by name and position.
(b) Type of contract contemplated. Explain the type of contract contemplated and the reasons for its suitability.
(c) Special features and requirements. In this area, discuss any special features (and related cost impact) of the procurement, including such items as--
(1) Letter contract or precontract costs authorized and incurred;
(2) Results of preaward survey;
(3) Contract option requirements;
(4) Government property to be furnished;
(5) Contractor/Government investment in facilities and equipment (and any modernization to be provided by the contractor/Government). Although not all inclusive, the following are to be covered:
(i) The facilities needed by the contractor;
(ii) How the facilities are to be provided (Government or contractor);
(iii) If to be provided by the contractor, the alternatives considered (operating lease, capital lease, contractor purchase or construction, or other alternatives);
(iv) Whether a financial guarantee has been requested by the offeror;
(v) The reasons for the alternative selected; and
(vi) How the costs are to be charged;
(6) Plant reconversion or plant clearance (see 1845.106-71); and
(7) Any deviations, special clauses, or unusual conditions anticipated, for example, unusual financing, warranties, EPA clauses and when approvals were obtained, if required.
(d) Cost analysis. (1) Include a parallel tabulation, by element of cost and profit/fee, of the contractor's proposal, the Government's negotiation objective, and the Government's maximum position, if applicable. For each element of cost, compare the contractor's proposal and each Government position, explain the differences and how the Government position(s) were developed, including the estimating assumptions and projection techniques employed, and how the positions differ in approach. Include a discussion of excessive wages found (if applicable) and their planned resolution (see 1831.205-670). Explain how historical costs, including costs incurred under a letter contract (if applicable), were used in developing the negotiation objective.
(2) Significant differences between the field pricing report (including any audit reports) and the negotiation objectives and/or contractor's proposal shall be highlighted and explained, as shall technical evaluation results that caused the Government's cost negotiation objectives to differ significantly from the contractor's proposed cost (such as differences in staffing). For each proposed subcontract meeting the requirement of FAR 15.806-2(a), there shall be a discussion of the price and, when appropriate, cost analyses performed by the contracting officer, including the negotiation objective for each such subcontract. The discussion of each major subcontract shall include the type of subcontract, the degree of competition achieved by the prime contractor, the price and, when appropriate, cost analyses performed on the subcontractor's proposal by the prime contractor, any unusual or special pricing or finance arrangements, and the current status of subcontract negotiations.
(3) The rationale for the Government's profit/fee objectives and, if appropriate, a completed copy of the NASA Form 634, Structured Approach--Profit/Fee Objective, and DD Form 1861, Contract Facilities Capital Cost of Money, should be included. For incentive and award fee contracts, describe the planned arrangement in terms of share lines, ceilings, cost risk, and so forth, as applicable.
(e) Negotiation approval sought. Indicate the specific approvals sought, for example, dollar parameters, special clauses/conditions and fee objectives.
1815.807-71 Installation reviews.
Each contracting activity shall establish a formal system for the prenegotiation review of any proposal over $250,000 ($100,000 at Dryden Flight Research Center, Stennis Space Center, Jet Propulsion Laboratory, Space Station Program Office, and Headquarters Acquisition Division). The scope of coverage, exact procedures to be followed, levels of management review, and contract file documentation requirements should be directly related to the dollar value and complexity of the procurement. The primary purpose of these reviews is to ensure that the negotiator, or negotiating team, is thoroughly prepared to enter into negotiations with a well-conceived, realistic, and fair plan.
1815.807-72 Headquarters reviews.
Approval of the prenegotiation position by the Associate Administrator for Procurement is required before negotiations are entered into on any procurement action selected for Headquarters review. Generally, at the time a procurement is processed as a Master Buy Plan (MBP) action under Subpart 1807.71, a decision will have been made as to whether the prenegotiation position will be subject to Headquarters review and approval. However, prenegotiation positions on any procurement actions may be selected for Headquarters review and approval at any point in the acquisition cycle prior to actual negotiations.
(a)(1) Advance information to be provided to Headquarters. The installation shall provide Code HS with the following:
(i) Five copies of the PPM.
(ii) One copy each of the contractor's proposal, the Government technical evaluation, and all pricing reports (including any audit reports).
(2) The required information described in paragraphs (a)(1)(i) and (a)(1)(ii) of this section shall be furnished to Headquarters as soon as practicable and sufficiently in advance of the planned commencement of negotiations to allow a reasonable period of time for Headquarters review.
(b) Safeguarding prenegotiation material. Prenegotiation data are very sensitive and should be handled accordingly. Close coordination with Code HS personnel should be maintained to ensure that prenegotiation material is not compromised during transit. Distribution of prenegotiation data shall be made on a need-to-know basis.
1815.808 Price negotiation memorandum.
(a) The price negotiation memorandum (PNM) serves as a detailed summary of (1) the technical, business, contractual, pricing (including price reasonableness), and other elements of the contract negotiated, and (2) the methodology and rationale used in arriving at the final negotiated agreement.
(b) When the PNM is a "stand-alone" document, it shall contain the information required by the FAR and NFS for both PPM's and PNM's. However, when a PPM has been prepared under 1815.807, the subsequent PNM need only provide any information required by FAR 15.808 that was not provided in the PPM. The FAR 15.808(a)(4) requirement, that the current status of the contractor's systems be included, must be addressed in the PNM. If any of these systems do not apply to a particular procurement, the reasons for not including their status must be explained. Also, explain the differences between the prenegotiation objective position and the final negotiated settlement, including each proposed subcontract that meets the requirement of FAR 15.806-2(a). If, at
the time of negotiated settlement for cost-reimbursement type prime contracts, there remain significant pricing uncertainties with respect to any proposed subcontract that meets the requirement of FAR 15.806-2(a), each such subcontract shall be discussed in the PNM, identified in the contract Schedule for special surveillance, and set aside for subcontract consent by the NASA contracting officer in accordance with FAR 44.2 and NFS 1844.102-70.
1815.870 Subcontract price redetermination.
1815.870-1 General.
(a) When subcontracts have been placed on a price-redetermination or fixed-price-incentive basis and the prime contract is a fixed-price type redeterminable contract as described in FAR 16.205, 16.206 and 16.403-2 which is to be finally priced, it may be appropriate to negotiate a firm prime contract price, even though the contractor has not yet established final subcontract prices. The contracting officer may do this when convinced that the amount included for subcontracting is reasonable, for example, when realistic cost or pricing data on subcontract efforts are available.
(b) However, even though the available cost data are highly indefinite and there is a distinct chance that one or more of the subcontracts eventually may be redetermined at prices lower than those predicted in redetermining the prime contract price, other circumstances may require prompt negotiation of the final contract price. In such a case, the contract modification evidencing the revised contract price shall provide for adjustment of the total amount paid or to be paid under the contract on account of subsequent
redetermination of the specified subcontracts. This may be done by including in the contract modification the clause prescribed at 1815.870-2.
1815.870-2 NASA contract clause.
The contracting officer shall insert the clause at 1852.215-71, Adjustment for Subcontract Price Redetermination, in contract modifications that reflect a repricing of the prime contract, but provide for future adjustment of the repriced contract upon subsequent redetermination of specified subcontract(s).
1815.902 Policy.
As authorized by FAR 15.902, NASA has established a structured approach for determining profit or fee objectives. This approach, described in 1815.970, is based on the profit-analysis factors appearing in FAR 15.905 and shall be used to determine profit or fee objectives for conducting negotiations in those acquisitions that require cost analysis, except in the case of--
(a) Architect-engineer contracts;
(b) Management contracts for operation and/or maintenance of Government facilities;
(c) Construction contracts;
(d) Contracts primarily requiring delivery of material supplied by subcontractors;
(e) Termination settlements;
(f) Cost-plus-award-fee contracts (however, contracting officers may find it advantageous to perform a structured profit analysis as an aid in arriving at an appropriate fee arrangement); and
(g) Contracts having unusual pricing situations when the structured approach is determined unsuitable and the exemption is (1) justified in writing, and (2) authorized by the procurement officer.
1815.903 Contracting officer responsibilities.
1815.903-70 Contracting officer authority for negotiating architect-engineer fees.
It is NASA policy that if a contract involving architect-engineer services covers any services other than the production and delivery of designs, plans, drawings, and specifications, the part of the contract price for these other services is not subject to the 6 percent fee limitation set forth in FAR 15.903(d)(1).
1815.970 NASA structured approach for profit or fee objective.
(a) The factors in 1815.970-1 through 1815.970-3 shall be considered in all cases in which profit is to be specifically negotiated. The weight ranges listed after each category and factor on NASA Form 634, Structured Approach Profit/Fee Objective, shall be used whenever the structured approach is used.
(b) The contracting officer shall first measure Contractor Effort by assigning a profit percentage in column 1.(c), within the designated weight ranges, to each element of contract cost recognized by the contracting officer. The amount calculated for the cost of money for facilities capital is not to be included as part of the cost base in column 1.(a) in the computation of profit.
(c) The suggested cost categories under Contractor Effort are for reference purposes only. The format of individual proposals will vary, but these broad and basic categories provide a sample structure for the evaluation of all categories of cost.
(d) After computing a total dollar profit in line 1.A for Contractor Effort, the contracting officer shall calculate the specific profit dollars for cost risk, investment, performance, subcontract program management, socioeconomic programs, and special situations. (Inventive and developmental contributions, unusual pricing agreements and additional factors shall be combined under special situations.)
(e) In making a judgment of the weight assigned to each cost category and factor, the contracting officer should be governed by the description and purpose of each category and factor and the considerations for evaluating them as set forth in 1815.970-1, -2, and -3. The rationale supporting the assigned weights shall be documented in the PPM in accordance with 1815.807-70(d)(3).
(f)(1) The structured approach was designed for arriving at profit or fee objectives for commercial organizations. However, as modified in accordance with paragraph (f)(2) of this section, the structured approach shall be used as a basis for arriving at fee objectives for nonprofit organizations (FAR Subpart 31.7), excluding educational institutions (FAR Subpart 31.3). It is NASA policy not to pay profit or fee on contracts with educational institutions.
(2) For contracts with nonprofit organizations under which fees are involved, an adjustment of up to 3 percent shall be subtracted from the total profit/fee objective. In developing this adjustment, it will be necessary to consider--
(i) Tax position benefits;
(ii) Granting of financing through letters of credit;
(iii) Facility requirements of the nonprofit organization; and
(iv) Other pertinent factors that may work to either the advantage or disadvantage of the contractor in its position as a nonprofit organization. The adjustments should not be applied as deductions against historical fee levels, but rather to the fee objective as calculated under the structured approach.
1815.970-1 Contractor effort.
This factor takes into account what resources are necessary and what the contractor must do to meet the contract performance requirements. Evaluation of this factor requires analyzing the cost content of the proposed contract as follows:
(a) Material acquisition (subcontracted items, purchased parts, and other material).
(1) Consider the managerial and technical efforts necessary for the prime contractor to select subcontractors and administer subcontracts, including efforts to introduce and maintain competition. These evaluations shall be performed for purchases of raw materials or basic commodities; purchases of processed material, including all types of components of standard or near-standard characteristics; and purchases of pieces, assemblies, subassemblies, special tooling, and other products special to the end item. In performing the evaluation, also consider whether the contractor's purchasing program makes a substantial contribution to the performance of a contract through the use of subcontracting programs involving many sources, new complex components and instrumentation, incomplete specifications, and close surveillance by the prime contractor.
(2) Recognized costs proposed as direct material costs, s as scrap charges, shall be treated as material for profit evaluation. If intracompany transfers are accepted at price in accordance with FAR 31.205-26(e), they shall be evaluated as material. Other intracompany transfers shall be evaluated by individual components of costs, i.e., material, labor, and overhead.
(b) Direct labor (engineering, service, manufacturing, and other labor).
(1) Analysis of the various items of cost should include evaluation of the comparative quality and level of the engineering talents, service contract labor, manufacturing skills, and experience to be employed. In evaluating engineering labor for the purpose of assigning profit weights, consideration should be given to the amount of notable scientific talent or unusual or scarce engineering talent needed, in contrast to journeyman engineering effort or supporting personnel.
(2) Evaluate service contract labor in a like manner by assigning higher weights to engineering, professional, or highly technical skills and lower weights to semiprofessional or other skills required for contract performance.
(3) Similarly, the variety of engineering, manufacturing and other types of labor skills required and the contractor's manpower resources for meeting these requirements should be considered. For purposes of evaluation, subtypes of labor (for example, quality control, and receiving and inspection) proposed separately from engineering, service, or manufacturing labor should be included in the most appropriate labor type. However, the same evaluation considerations as outlined above will be applied.
(c) Overhead and general management (G&A). Analysis of individual items of cost within overhead and G&A includes the evaluation of the makeup of these expenses, how much they contribute to contract performance, and the degree of substantiation provided for rates proposed in future years.
(1) The composite of the weights assigned to the individual elements of the overhead pools will be the profit consideration given the pools as a whole.
(2) The contracting officer, in an evaluation of the overhead rate of a contractor using a single indirect cost rate, should break out the applicable sections of the composite rate which could be classified as engineering overhead, manufacturing overhead, other overhead pools, and G&A expenses, and apply the appropriate weight.
(d) Other costs. Include all other direct costs associated with contractor performance under this item, for example, travel and relocation, direct support, and consultants. Analysis of these items of cost should include their nature and how much they contribute to contract performance.
1815.970-2 Other factors.
(a) Cost risk. The degree of risk assumed by the contractor should influence the amount of profit or fee a contractor is entitled to anticipate. For example, if a portion of the risk has been shifted to the Government through cost-reimbursement or price redetermination provisions, unusual contingency provisions, or other risk reducing measures, the amount of profit or fee should be less than for arrangements under which the contractor assumes all the risk. This factor is one of the most important in arriving at prenegotiation profit objectives.
(1) Other risks on the part of the contractor, such as loss of reputation, losing a commercial market, or losing potential profits in other fields, shall not be considered in this factor. Similarly, any risk on the part of the contracting office, such as the risk of not acquiring an effective space vehicle, is not within the scope of this factor.
(2) The degree of cost responsibility assumed by the contractor is related to the share of total contract cost risk assumed by the contractor through the selection of contract type. The weight for risk by contract type would usually fall within the 0-to-3 percent range for cost-reimbursement contracts and 3-to-7 percent range for fixed-price contracts.
(i) Within the ranges set forth in paragraph (a)(2) of this section, a cost-plus-fixed-fee contract normally would not justify a reward for risk in excess of 0 percent, unless the contract contains cost risk features such as ceilings on overheads, etc. In such cases, up to 0.5 percent may be justified. Cost-plus-incentive-fee contracts fill the remaining portion of the range, with weightings directly related to such factors as confidence in target cost, share ratio of fees, etc.
(ii) The range for fixed-price type contracts is wide enough to accommodate the various types of fixed-price arrangements. Weighting should be indicative of the price risk assumed and the end item required, with only firm-fixed-price contracts with requirements for prototypes or hardware reaching the top end of the range.
(3) The cost risk arising from contract type is not the only form of cost risk to consider.
(i) The contractor's subcontracting program may have a significant impact on the contractor's acceptance of risk under a particular contract type. This consideration should be a part of the contracting officer's overall evaluation in selecting a weight to apply for cost risk. It may be determined, for instance, that the prime contractor has effectively transferred real cost risk to a subcontractor, and the contract cost risk weight may, as a result, be below the range that would otherwise apply for the contract type proposed. The contract cost risk weight should not be lowered, however, merely on the basis that a substantial portion of the contract costs represents subcontracts unless those subcontract costs represent a substantial transfer of the contractor's risk.
(ii) In making a contract cost risk evaluation in a procurement action that involves definitization of a letter contract, unpriced change orders, or unpriced orders under BOAs, consideration should be given to the effect on total contract cost risk as a result of having partial performance before definitization. Under some circumstances it may be reasoned that the total amount of cost risk has been effectively reduced. Under other circumstances it may be apparent that the contractor's cost risk is substantially unchanged. To be equitable, determination of a profit weight for application to the total of all recognized costs, both incurred and yet to be expended, must be made with consideration of all attendant circumstances and should not be based solely on the portion of costs incurred, or percentage of work completed, before definitization.
(b) Investment. NASA encourages its contractors to perform their contracts with a minimum of financial, facilities, or other assistance from the Government. As such, it is the purpose of this factor to encourage the contractor to acquire and use its own resources to the maximum extent possible. Evaluation of this factor should include an analysis of the contractor's facilities and the frequency of payments.
(1) To evaluate how facilities contribute to the profit objective requires knowledge of the level of facilities utilization needed for contract performance, the source and financing of the required facilities, and the overall cost effectiveness of the facilities offered. Contractors furnishing their own facilities that significantly contribute to lower total contract costs should be provided additional profit. On the other hand, contractors that rely on the Government to provide or finance needed facilities should receive a correspondingly lower profit. Cases between the above examples should be evaluated on their merits, with either a positive or negative adjustment, as appropriate, in the profit objective. However, where a highly facilitized contractor is to perform a contract that does not benefit from this facilitization, or when a contractor's use of its facilities has a minimum cost impact on the contract, profit need not be adjusted.
(2) In analyzing payments, consider the frequency of payments by the Government to the contractor and unusual payments, for example, advance payments or milestone payments. The key to this weighting is proper consideration of the impact the contract will have on the contractor's cash flow. Generally, negative consideration should be given for payments more frequent than monthly, with maximum reduction being given as the contractor's working capital approaches zero. Positive consideration should be given for payments less frequent than monthly.
(c) Performance. The contractor's past and present performance should be evaluated in such areas as product quality, meeting performance schedules, efficiency in cost control (including the need for and reasonableness of costs incurred), accuracy and reliability of previous cost estimates, degree of cooperation by the contractor (both business and technical), timely processing of changes and compliance with other contractual provisions.
(d) Subcontract program management. Subcontract program management includes evaluation of the contractor's commitment to its competition program and its past and present performance in competition in subcontracting. If a contractor has consistently achieved excellent results in these areas in comparison with other contractors in similar circumstances, such performance merits a proportionately greater opportunity for profit or fee. Conversely, a poor record in this regard should result in a lower profit or fee.
(e) Federal socioeconomic programs. In addition to rewarding contractors for unusual initiative in supporting Government socioeconomic programs, failure or unwillingness on the part of the contractor to support these programs should be viewed as evidence of poor performance for the purpose of establishing this profit objective factor.
(f) Special situations.
(1) Unusual pricing agreements. Occasionally, unusual contract pricing arrangements are made with the contractor under which it agrees to accept a lower profit or fee for changes or modifications within a prescribed dollar value. In such circumstances, the contractor should receive favorable consideration in developing the profit objective.
(2) This factor need not be limited to situations that increase profit/fee levels. A negative consideration may be appropriate when the contractor is expected to obtain spin-off benefits as a direct result of the contract, for example, products with commercial application.
1815.970-3 Facilities capital cost of money.
(a) When facilities capital cost of money (CAS 414, cost of money as an element of the cost of facilities capital) is included as an item of cost in the contractor's proposal, it shall not be included in the cost base for the purpose of calculating profit/fee (see 1815.970(b)). In addition, a reduction in the profit objective shall be made in an amount equal to the amount of facilities capital cost of money allowed in accordance with FAR 31.205-10(a)(2).
(b) Facilities capital cost of money shall be calculated using the format of DD Form 1861, Contract Facilities Capital Cost of Money. Overhead pools, for example, engineering, manufacturing, and G&A, are listed by year in the first column of the DD Form 1861 labeled POOL. The allocation base figure for each overhead pool objective is listed by year in the second column. Each allocation base is then multiplied by the recommended facilities capital cost of money factor for that base. The total facilities capital cost of money amounts appearing in the last column labeled AMOUNT are totaled in the space provided in the line labeled TOTAL. This total represents the estimated facilities capital cost of money amount for the contract and is the figure to be used to calculate the prenegotiation position memorandum objective cost and to reduce the profit objective in accordance with 1815.970-3(a). The lines labeled TREASURY RATE and FACILITIES CAPITAL EMPLOYED (TOTAL DIVIDED BY TREASURY RATE) and Section 7 of the form labeled DISTRIBUTION OF FACILITIES CAPITAL EMPLOYED do not apply to NASA and should be ignored.
(c) If a contractor proposes CAS 417, cost of money as an element of the cost of capital assets under construction, as a separate cost element, a reduction in the profit objective shall be made similar to that made for CAS 414, facilities capital cost of money.
1815.971 Payment of profit or fee under letter contracts.
NASA's policy is to pay profit or fee only on definitized contracts.
1815.1003 Notification to successful offeror.
The reference to notice of award in FAR 15.1003 on negotiated procurements is a generic one. It relates only to the formal establishment of a contractual document obligating both the Government and the offeror. The notice is effected by the transmittal of a fully approved and executed definitive contract document, such as the award portion of SF 33, SF 26, or SF 1447, or a letter contract when a definitized contract instrument is not available but the urgency of the requirement necessitates immediate performance. In this latter instance, the procedures in NFS 1816.603 for approval and issuance of letter contracts shall be followed.
1815.1004 Debriefing of unsuccessful offerors.
1815.1004-1 Scope of Subpart.
This subpart sets forth NASA policy and procedures for debriefing unsuccessful offerors in all competitive negotiated procurements. (See also, paragraph 504 of 1870.103, App. I, for debriefing procedures applicable to Announcements of Opportunity.)
1815.1004-2 Policy.
(a) NASA shall debrief an unsuccessful competitor in accordance with FAR 15.1004. Debriefings shall be consistent with--
(1) The findings of the Source Evaluation Board (SEB) and the basis on which the Selection Official made the decision; or
(2) The findings of the technical and contracting officers and the basis on which the contracting officer made the decision if SEB procedures were not employed.
(b) Unless authorized by the Associate Administrator for Procurement, the Source Selection Statement for alternative system design concepts under the Major System Acquisitions process is not to be released to competing offerors or the general public until the release of the Source Selection Statements for full-scale development.
1815.1004-3 Designated Officials.
Debriefings are to be conducted by senior NASA officials. When the selection has been made by the Administrator, the Administrator will designate an official familiar with the rationale for the selection to conduct the debriefings, with participation by cognizant field installation personnel, if deemed necessary. When the selection has been made by the Field Installation Director or a Headquarters Staff or Program Office head, the Center Director or Official-in-Charge of the Headquarters office shall designate an official and necessary supporting staff to perform the debriefing. When SEB procedures were not applied, the installation Procurement Officer, or designee, shall perform the debriefing.
1815.1004-4 Procedures.
(a) The recipient of a written or oral debriefing request shall immediately refer the request to the installation procurement officer.
(b) The procurement officer, upon receipt of a debriefing request, shall inform the designated official and other concerned officials at the installation and, in the case of procurement actions where an Associate Administrator or the Administrator was the Selection Official, the cognizant NASA Headquarters personnel.
(c)(1) If an unsuccessful offeror in a negotiated procurement submits, prior to the award of the contract, a written request for a debriefing, such a debriefing will be provided at the earliest feasible time. Except as provided in paragraph (c)(2) of this section, debriefings shall be conducted after announcement of the selection decision and prior to award of the contract. ("Selection decision" means the final selection of the one successful contractor, or the contractors where more than one contract is to be awarded). If the selection decision involves more than one contractor pursuant to the Major System Acquisition process, the debriefing will be limited in such a manner that it does not prematurely disclose innovative concepts, designs, and approaches of the successful contractor(s) that would result in a transfusion of ideas which also could inhibit contractors during the early phase from offering their best and most promising ideas for meeting the mission need.
(2) When the exigency of the situation will not permit delaying the award in order to debrief unsuccessful offerors, such debriefings may be conducted after award.
(d) A summary of the results of each debriefing, signed by the conducting NASA official, shall be placed in the contract file.
1815.7001 NASA Ombudsman Program.
NASA's implementation of an ombudsman program is in NMI 1210.3, NASA Ombudsman Program.
1815.7002 Commerce Business Daily announcements, solicitations and contracts.
The contracting officer shall include a statement similar to that contained in the clause at 1852.215-84, Ombudsman, in Commerce Business Daily announcements of competitive procurements. Also, a clause substantially the same as the one at 1852.215-84 shall be included in Section L of solicitations, including draft solicitations, and in all contracts.