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PART 1844

SUBCONTRACTING POLICIES AND PROCEDURES

TABLE OF CONTENTS

SUBPART 1844.2 CONSENT TO SUBCONTRACTS

1844.201 Consent requirements.

1844.201-1 Fixed-price prime contracts.

1844.201-2 Cost reimbursement and letter prime contracts.

1844.202 Contracting officer’s evaluation.

1844.202-1 Responsibilities.

1844.204 Contract clauses.

1844.204-70 NASA contract clause.

SUBPART 1844.3 CONTRACTORS' PURCHASING SYSTEMS REVIEWS

1844.302 Requirements.

1844.302-70 DCMC-conducted contractor purchasing system reviews

1844.302-71 NASA-conducted contractor purchasing systems reviews.

1844.304 Surveillance.

1844.304-70 Contracting officer surveillance.

1844.305 Granting, withholding, or withdrawing approval.

1844.305-70 Review of CPSR reports.

PART 18-44

SUBCONTRACTING POLICIES AND PROCEDURES

SUBPART 1844.1--

GENERALSubpart 1844.2--Consent to Subcontracts

18-44.102 Policy.

(a) It is NASA policy to retain consent to subcontract authority--

(1) Under fixed-price contracts required to include the clause at FAR 52.244-1;

(2) Under cost reimbursement and letter contracts required to include the clause at FAR 52.244-2;

(3) Under time-and-material and labor-hour contracts required to include the clause at FAR 52.244-3; and

(4) For all subcontracts designated as requiring special surveillance. (See 18-44.102-70 on special surveillance.)

(b) However, if the contracting officer considers it necessary to delegate consent to subcontract authority, the contracting officer shall--

(1) Justify in writing the rationale for such delegation;

(2) Obtain written approval of the justification from the procurement officer or a designee; and

(3) Include the approved justification in the contract file.

18-44.102-70 Contracting officer designated special surveillance and consent requirements.

1844.201 Consent requirements.

1844.201-1 Fixed-price prime contracts.

(b)(2)(A)

(a) Notwithstanding approval of a contractor's purchasing system, the contracting officer may require the contractor to obtain consent for any subcontract or class of subcontracts selected for special surveillance. Such subcontracts shall be identified in the schedule of the contract. In determining making subcontracts subject to special surveillance consent requirements, the contracting officer should consider specific subcontract awards, as well as any individual systems, subsystems, components, technologies, and services that which should have contracting officer consent prior to being subcontracted. Any subcontract for which consent was not provided at the time of contract award, under a cost type prime contract (FAR 44.202-1(c)), for which the Government would have required cost and pricing data in accordance with FAR 15.806-2(a)(1) or (2), shall be identified for special surveillance.

(B)

(b) For each planned contract award expected to exceed $1 million in total estimated value (inclusive of options), the contracting officer should consider such factors as the following , in conjunction with the technical representative, when appropriate, shall review the information available at the time of contract award to determine whether certain subcontracts require special surveillance: . At a minimum, the contracting officer review should consider such factors as--

(a) (1) The degree of subcontract pricing uncertainties at the time of contract award;

(b) (2) The overall quality of the contractor's approach to pricing subcontracts;

(c) (3) The extent of competition achieved, or to be achieved, by the contractor in the award of subcontracts;

(d) (4) Technical complexity and the criticality of specific supplies, services, and technologies on the successful performance of the contract; and

(e) (5) The potential impact of planned subcontracts on source selection or incentive arrangements.

(C)

(c) The contracting officer shall document results of the review in the contract file., and include the requirement to obtain consent for subcontracts identified for special surveillance in the schedule of the contract. For contract modifications and change orders, the contracting officer shall make the determination required by paragraph (b)(2)(B) (b) of this section whenever the value of any subcontract resulting from the change order or modification :

(1) Iis proposed to exceed $100,000; or

(2) I or is one of a number of sub-contracts with a single subcontractor, under the contract, for the same or related supplies or services, that in the aggregate are expected cumulatively to exceed $100,000.

1844.201-2 Cost reimbursement and letter prime contracts.

(c)(2) The policy in 1844.201-1(b)(2) shall be followed to determine whether certain subcontracts require special surveillance. In addition, any subcontract under a cost type prime contract shall be identified for special surveillance if consent was not provided at the time of contract award and cost or pricing data would be required in accordance with FAR 15.806-2(a)(1) or (2).

1844.202 Contracting officer’s evaluation.

1844.202-1 Responsibilities.

(a) NASA contracting officers shall retain consent to subcontract authority unless delegation is approved in writing by the procurement officer.

18-44.102-71 Reserved.

18-44.102-72 New sources of scientific and technical competence.

As a Government agency whose mission involves substantial Federal expenditures and use of national resources, NASA has a

strong interest in helping accomplish collateral national economic goals within the framework of applicable statutory and administrative authority in a way that will not impair program effectiveness. Utilization in the space program and the accompanying development of the potential of all geographical regions will effectively contribute to achieving national goals. To advance the further development of competence and capacity of sources, NASA encourages the placing of subcontracts over wider geographic areas. To carry out these objectives, the clause at 18-52.244-70, Geographic Participation in the Aerospace Program, shall be used as prescribed at 18-44.170.

18-44.170 NASA contract clause.

1844.204 Contract clauses.

1844.204-70 NASA contract clause.

The contracting officer shall insert the clause at 18-52.244-70, Geographic Participation in the Aerospace Program, in all research and development solicitations and contractsanticipated to exceed $500,000 and in resulting contracts of $500,000 or over that willo be performed within the United States.

Subpart 18-44.3--

Contractors' Purchasing

Systems Reviews

18-44.302 Requirements.

18-44.302-70 DCMC-conducted contractor purchasing system reviews.

For contracts within their cognizance, NASA contracting officers shall be aware of purchasing system approval status and shouldare encouraged to become actively involved with the Defense Contract Management Command (DCMC) in the Contractor Purchasing System Review (CPSR) process. Involvement should include the following:

(a) Verifying that CPSRs are being conducted as required for each contractor meeting the thresholds in FAR 44.302.

(b) Ensuring that purchasing system review specifically includes the business unit performing the NASA contract.

(c) Actively participating as a team member, or arranging NASA representation, on DCMC CPSRs to review areas of NASA-specific interest. At a minimum, such participation or representation shall be arranged when the DCMC CPSR review involves--

(1) Contractors with major NASA programs;

(2) Contractors' business units where the total dollar value of NASA contracts is substantial; or

(3) Any contractor system where the contracting officer has special concerns.

Participation should be oriented towards reviewing those areas of NASA-specific interest within the contractor's procurement operation.

(d) Ensuring that the selected CPSR sample to be reviewed reflects the level of NASA business in the contractor's purchasing organization.

(e) Providing to the cognizant DCMC CPSR team leader any areas of special emphasis regarding the contractor's purchasing system procurement operation, to ensure that the review is tailored to address any NASA concerns., in addition to complying with FAR requirements for the review format.

18-44.302-71 NASA-conducted contractor purchasing system reviews.

If a NASA activity is the cognizant contract administration office, or after coordination with the cognizant DCMC CPSR office, it is determined that a CPSR is required but cannot be accomplished by DCMC, then a CPSR should be conducted by NASA personnel. The NASA CPSR team leader:

(a) May use the DOD FAR Supplement, Contractor Purchasing System Review (CPSR) guidance, as a general guide to conducting the CPSR.

(b) May vary the scope of review depending on the contractor and contracts involved.

(c) Shall maintain close coordination with the cognizant ACO during CPSRs at contractors under DOD cognizance.

1844.304 Surveillance.

18-44.304-70 Contracting officer s Surveillance.

(a) In the period between complete CPSRs, NASA contracting officers shall maintain a sufficient level of surveillance to ensure contractor purchasing efforts in support of NASA contracts are accomplished in an appropriate manner and protect the interests of the Agency.

(b) Surveillance shall be accomplished primarily through performance of subcontract consent-to-subcontract reviews (see FAR 44.202). Other methods of surveillance, including periodic reviews of contractor purchasing records, may also be conducted. Contracting officers shall document the results of subcontract consent -to-subcontract reviews and periodic reviews, maintaining a record of contractor subcontract or purchase order award performance on NASA contracts. Contractor performance shall be summarized on an annual basis and provided to the ACO cognizant of the contractor's purchasing system. Annual reports should summarize the number of consent reviews and other reviews conducted during the year by NASA representatives, and summarize the types and quantity of deficiencies identified during reviews, the need for special reviews, and recommended areas of emphasis during future CPSRs.

18-44.305 Granting, withholding, or withdrawing approval.

1844.305-70 Review of CPSR reports.

ACO actions related to purchasing system approval have a potential impact on NASA

contracting officer consent requirements. Accordingly, NASA contracting officers shalould review system deficiencies documented in CPSR reports and when results of consent reviews and other sources conflict with CPSR or DOD surveillance conclusions, formally communicate such concerns to the ACO having cognizance of purchasing procurement system approval. Significant issues or significant conflicts with DOD CPSR results should be formally referred to the Office of Procurement (Code HS).Headquarters, Code HK.

18-44.307-70 Reporting.

NASA contracting officers, when delegating contract administration to a DOD contract administration office under FAR 42.202 and 42.302(a)(50), are required by 18-42.202-70(f) to include in the letter of delegation of contract administration functions a requirement for the contract administration office to provide the NASA contracting officer with adequate advance notification of scheduled CPSRs and a copy of each CPSR report.

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