[Federal Register Volume 60, Number 60 (Wednesday, March 29, 1995)]
[Rules and Regulations]
[Pages 16058-16063]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-7612]
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NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
48 CFR Parts 1801, 1804, 1806, 1808, 1813, 1815, 1816, 1832, 1836,
1840, 1841, 1842, 1845, 1851, 1852, and 1870
[NFSD 89-18]
RIN 2700-AB83
NASA FAR Supplement; Miscellaneous Amendments
AGENCY: Office of Procurement, Acquisition Liaison Division, National
Aeronautics and Space Administration (NASA).
ACTION: Final rule.
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SUMMARY: This document amends the NASA Federal Acquisition Regulation
Supplement (NFS) to reflect a number of miscellaneous changes dealing
with NASA internal and administrative matters, such as the NASA FAR
Supplement rewrite, procurement integrity, cost-reimbursement
contracts, architect-engineer services, acquisition of utility
services, and audit tracking and resolution.
EFFECTIVE DATE: March 31, 1995.
FOR FURTHER INFORMATION CONTACT: Mr. David K. Beck, (202) 358-0482; e-
mail: dbeck@proc.hq.nasa.gov.
SUPPLEMENTARY INFORMATION:
Background
A cross-reference is added to 1813.7104(a) due to FAC 90-24. The
FAC allows the head of contracting activity to exclude contracting
officers (with micro-purchase authority only) from the procurement
integrity definition of ``procurement official'' if the HCA determines
that it is unlikely that the contracting officer's acquisitions will
exceed $20,000 in any 12-month period.
Sections 1816.301, 1816.301-3 and 1816.403 are removed due to FAC
90-24's removal of FAR 16.301 and 16.403. [[Page 16059]]
Various changes include: (i) Lowering the selection official level
for A-E contracts from the head of the installation to an executive
level manager in the requirements office; (ii) eliminate 1836.600-70 on
inter-organization acquisition coverage through NASA Headquarters Code
HS; and (iii) upgrade the ethics certificate associated with selection
of A-E contracts.
Subpart 1803.3 is redesignated as Part 1841. NFS clauses on utility
services are removed where new FAR clauses provide adequate coverage.
Changes are necessary for NASA's audit followup system to comply
with Office of Management and Budget (OMB) Circular A-50, ``Audit
Followup.'' In addition, they streamline the coverage on audit tracking
and resolution and relocate the coverage within the NASA FAR
Supplement.
Miscellaneous changes and corrections are found in the following
sections: 1801.104-370; 1801.603-2 (reference to SF 171 deleted);
Subpart 1804.8 (title change of subpart heading); 1804.805 (title
change to section heading); 1806.303-1; 1808.002-71 and -76 (removed
due to fAR coverage); Subpart 1808.7 (title change to subpart heading
and ``workshop'' changed to new FAR terminology ``nonprofit agency'';
1815.613-71; 1819.708-70; 1825.403-70; 1832.402; 1842.202-70; 1845.106-
70; 1845.405; 1845.407; 1845.608-6; 1845.610-2; 1845.7203; 1845.7205;
1845.7213; 1851.102; 1870.103, App. I. Chapter 7, Appendix C; and
1870.303, App. I, Chapter 4.
Availability of NASA FAR Supplement
The NASA FAR Supplement, of which this rule is a part, is available
in its entirety on a subscription basis from the Superintendent of
Documents, Government Printing Office, Washington, DC 20402, telephone
number (202) 783-3238. Cite GPO Subscription Stock Number 933-003-
00000-1. It is not distributed to the public, either in whole or in
part, directly by NASA.
Impact
NASA certifies that this regulation will not have a significant
economic impact on a substantial number of small entities under the
Regulatory Flexibility Act (5 U.S.C. 601 et seq.). This rule does not
impose any reporting or record keeping requirements subject to the
Paperwork Reduction Act.
List of Subjects in 48 CFR Parts 1801, 1804, 1806, 1808, 1813,
1815, 1816, 1832, 1836, 1840, 1841, 1842, 1845, 1851, 1852, and
1870
Government procurement.
Thomas S. Luedtke,
Deputy Associate Administrator for Procurement.
Accordingly, 48 CFR Chapter 18 is amended as follows:
PART 1801--FEDERAL ACQUISITION REGULATIONS SYSTEM
1. The authority citation for 48 CFR Parts 1801, 1804, 1806, 1808,
1813, 1815, 1816, 1832, 1836, 1842, 1845, 1851, 1852, and 1870
continues to read as follows:
Authority: 42 U.S.C. 2473(c)(1).
1801.104-370 [Amended]
2. In section 1801.104-370, paragraph (a), ``Ms. Joan Brooks (202-
358-2105)'' is revised to read ``Mrs. Cynthia O'Bryant (202-358-
1248)''.
3. In section 1801.104-370, paragraphs (e) and (f), ``Code JBD-4''
is revised to read ``Code JOB-19''.
4. In section 1801.104-370, paragraph (f), ``Code HS, Gloria
Shively (202-358-2080)'' is revised to read ``Code HP, Cynthia O'Bryant
(202-358-1248)'' and ``Code JM-2'' is revised to read ``Code JMS''.
1801.603-2 [Amended]
5. In section 1801.603-2, paragraph (d)(1) introductory text, the
phrase ``(or SF 171)'' is removed.
PART 1804--ADMINISTRATIVE MATTERS
Subpart 1804.8 [Amended]
6. In subpart 1804.8, the title ``Contract Files'' is revised to
read ``Government Contract Files''.
1804.805 [Amended]
7. In section 1804.805, the section heading ``Disposal of contract
files.'' is revised to read ``Storage, handling, and disposal of
contract files.''
PART 1806--COMPETITION REQUIREMENTS
1806.303-1 [Amended]
8. In section 1806.301-1, paragraph (b), ``Code IRD'' is revised to
read ``Code IR''.
PART 1808--REQUIRED SOURCES OF SUPPLIES AND SERVICES
1808.002-71 [Removed]
9. Section 1808.002-71 is removed.
1808.002-76 [Removed]
10. Section 1808.002-76 is removed.
Subpart 1808.3 [Removed]
11. Subpart 1808.3 is removed.
Subpart 1808.7 [Amended]
12. The title of subpart 1808.7 ``Acquisition From The Blind And
Other Severely Handicapped'' is revised to read ``Acquisition From
Nonprofit Agencies Employing People Who Are Blind Or Severely
Disabled''.
1808.705-1 [Amended]
13. In section 1808.705-1, paragraph (b), the phrase ``to obtain
workshop-produced supplies'' is revised to read ``to obtain nonprofit
agency-produced supplies''.
PART 1813--SMALL PURCHASE AND OTHER SIMPLIFIED PURCHASE PROCEDURES
1813.7104 [Amended]
14. In section 1813.7104, the following sentence is added to the
end of paragraph (a) to read as follows:
``See 48 CFR (FAR) 3.104-4(h)(5) for procurement integrity
requirements.''
PART 1815--CONTRACTING BY NEGOTIATION
1815.871 and 1815.872 [Removed]
15. Sections 1815.871 and 1815.872 are removed.
PART 1816--TYPES OF CONTRACTS
1816.301 and 1816.301-3 [Removed]
16. Sections 1816.301 and 1816.301-3 are removed.
1816.403 [Removed]
17. Section 1816.403 is removed.
PART 1832--ADVANCE PAYMENTS
1832.402 [Removed]
18. In section 1832.402, paragraph (a)(1) is amended by removing
the second sentence.
PART 1836--CONSTRUCTION AND ARCHITECT-ENGINEER CONTRACTS
Subpart 1836.6 [Amended]
1836.600 and 1836.600-70 [Removed]
19. and 20. Sections 1836.600 and 1836.600-70 are removed.
1836.602-2 [Amended]
21. Sections 1836.602-2 is revised to read as follows:
1836.602-2
Evaluation boards.
In compliance with 48 CFR (FAR) 36.602-2, the person designated as
the [[Page 16060]] selection authority, unless Field Installation
Management Instructions designate higher authority, shall establish an
architect-engineer selection board to be composed of at least three
voting members. Membership shall at least include: one currently
registered architect or professional engineer, who shall serve as the
board chairperson; an appropriate official from the requiring office;
and, an appropriate technical official familiar with any unique subject
matter (see 48 CFR (FAR) 36.102, Definitions, ``Architect-engineer
services'') critical to the requirement. Each board shall include an
appropriate procurement official (a contracting officer, if feasible)
as an ad hoc advisor to the board and the selection authority. Where
appropriate, a procurement official may serve as a voting member on
evaluation boards. Appointment of non-Government employees as voting
members is not authorized.
22. Section 1836.602-4 is revised to read as follows:
1836.602-4 Selection authority.
The first level manager above the requirement office who is serving
in grade GS 16 or above under the General Schedule or in a comparable
or higher position under another schedule, or otherwise, is designated
as the selection authority for purposes of 48 CFR (FAR) 36.602.4.
23. Section 1836.602-5 is revised to read as follows:
1836.602-5
Short selection processes for contracts not to exceed the small
purchase limitation.
(a) Use of the procedures at 48 CFR (FAR) 36.602-5 (a) or (b) is at
the discretion of the selection authority specified in 1836.602-4.
(b) The selection authority specified in 1836.602-4 is designated
as the selection authority for purposes of 48 CFR (FAR) 36.602-5(b)(2).
1836.602-70 [Amended]
24. In section 1836.602-70, paragraph (b)(1), ``the Comptroller''
is revised to read ``the Chief Financial Officer (CFO)/Comptroller''.
25. In section 1836.602-71, paragraph (a)(1) is revised to read as
follows:
1836.602-71 Conflict of interest.
(a)(1) All persons participating in an architect-engineer
evaluation, review or selection activity shall have a written
certification on file in NASA stating knowledge of and compliance with
the Office of Government Ethics' Standards of Ethical Conduct for
Employees of the Executive Branch (August 1992) and the NASA Supplement
(September 28, 1994) to the Office of Government Ethics's Standard of
Ethical Conduct for Employees of the Executive Branch (August 1992).
The minimum certification shall be:
Certification
I, the undersigned, hereby certify that I have: (i) read the
Office of Government Ethics' Standard of Ethical Conduct for
Employees of the Executive Branch (August 1992) and the NASA
Supplement (September 28, 1994) to the Office of Government Ethics'
Standard of Ethical Conduct for Employees of the Executive Branch
(August 1992); (ii) filed the relevant [insert ``Standard Form 278''
for any employee who's annual salary is 120 percent above step one
of grade 15 of the General Schedule (GS) or ``Standard Form 450''
for employees whose annual salary is at or below step ten of grade
15 of the General Schedule (GS)]; and, (iii) examined the attached
list of competitors for the [Title] project before the architect-
engineer selection board. I further certify that I have no financial
or other personal interest in these firms.
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(Signature)
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(Date)
(End of certification)
* * * * *
1836.602-71 [Amended]
26. In paragraph (a)(3) of section 1836.602-71, the word ``center''
is revised to read ``installation'' in two occurrences.
PART 1840 [ADDED AND RESERVED]
27. Part 1840 is added and reserved.
PART 1841--ACQUISITION OF UTILITY SERVICES
28. Part 1841 is added as set forth below:
PART 1841--ACQUISITION OF UTILITY SERVICES
Subpart 1841.1--General
1841.101 Definitions.
Subpart 1841.2--Acquiring Utility Services
1841.201 Policy.
1841.204 GSA areawide contracts.
1841.205 Separate contracts.
1841.205-70 Renewal of contracts.
1841.205-71 Headquarters requirement for copies of contracts.
1841.205-72 Contents of a negotiated utility service contract.
1841.205-73 Authorization for procurement of wellhead natural gas.
1841.205-74 Utility service narrative.
1841.205-75 Contracts requiring Headquarters approval.
1841.206 Interagency agreements.
Subpart 1841.4--Administration
1841.402 Rate changes and regulatory intervention.
Subpart 1841.5--Solicitation Provision and Contract Clauses
1841.501 Solicitation provision and contract clauses.
Authority: 42 U.S.C. 2473(c)(1).
Subpart 1841.1--General
1841.101 Definitions.
Utility suppliers, as used in this subpart, may be quasi-public
service corporations, private concerns, municipalities, associations,
or cooperatives. They generally operate in a franchised territory
without competition, so they may frequently be in a sole-source
position. Under common law, public utilities must render service at
reasonable rates and without discrimination. Their operations,
management, rates, and profits are usually regulated by Federal, State,
or local regulatory bodies, but absence of a regulatory body does not
necessarily mean a complete lack of control. Administrative remedies
pursuant to enabling statutes may be pursued or complaints may be taken
to a court of competent jurisdiction.
Subpart 1841.2--Acquiring Utility Services
1841.201 Policy.
(a) Requirements for utility services shall be determined by
technically qualified personnel who will assist the contracting officer
as required. Before soliciting technical assistance outside the agency
(see 48 CFR (FAR) 41.203), technical personnel shall contact the
Environmental Management Division (Code JE), NASA Headquarters.
(b) Appropriated funds may not be used to purchase electricity in a
manner inconsistent with state law governing the provision of electric
utility service, including state utility commission rulings and
electric utility franchises or service territories established pursuant
to state statute, state regulation, or state-approved territorial
agreements (Pub. L. 100-202, Sec. 8093, 101 Stat. 1329-79). Before
acquiring electric utility service, the contracting officer shall
determine whether the manner of acquisition, in particular, competitive
acquisition under 48 CFR (FAR) 41.205(b), would be inconsistent with
state law. Section 8093 of Pub. L. 100-202 is not intended to affect
transfers of electricity to agencies from Federal power marketing
agencies or the Tennessee Valley Authority, such as NASA's power
allocation from the Western Area Power Marketing Administration. Such
transfers do not constitute ``purchases'' for purposes of section 8093.
1841.204 GSA Areawide Contracts.
(a) GSA publishes a checklist of utility services available under
its areawide public utility contracts. The checklist specifies contract
numbers, [[Page 16061]] expiration dates, companies, and areas
serviced. Copies of the checklist may be obtained from GSA, Public
Utility Division (PPU), Public Buildings Service, Washington, DC 20405
((202) 501-3994).
(b) In determining whether a GSA area-wide public utility contract
is adequate to meet requirements, procurement officers should consider
(1) the areawide contract rates and volume of service required, (2) any
unusual characteristics of the service required, (3) any special
equipment or facility requirements, (4) any special technical contract
provisions required, and (5) any other special circumstances.
(c) If a procurement officer finds that a separate negotiated
contract would be more advantageous to the Government than the GSA
areawide public utility contract, the procurement officer shall submit
a request to the Associate Administrator for Procurement, NASA
Headquarters (Code HS), for a waiver of the requirement to use the GSA
areawide public utility contract. The request shall explain the merit
of a separately negotiated contract.
1841.205 Separate contracts.
1841.205-70 Renewal of contracts.
(a) A contract may be renewed or extended by option, provided that
the contract is not in effect for more than a total of 5 successive
years.
(b) Contracting officers shall consider selecting an expiration
date for the contract sufficiently after the end of the fiscal year to
ensure that appropriations will be available when the option is
exercised.
1841.205-71 Headquarters requirement for copies of contracts.
The contracting officer shall forward, promptly after execution,
one copy of each contract, service authorization form, memorandum of
understanding, and modification to the Associate Administrator for
Procurement, NASA Headquarters (Code HS) and the Environmental
Management Division, NASA Headquarters (Code JE).
1841.205-72 Contents of a negotiated utility service contract.
(a) All negotiated utility service contracts estimated to exceed
$2,500 annually shall be written in accordance with the directions in
paragraphs (a)(1) through (5) of this section:
(1) SF 26. Use Standard Form 26 (see 48 CFR (FAR) 53.215-1(b)).
(2) Appendix A.
(i) Include the rate schedule, which shall consist of--
(A) The published rate schedule of the contractor approved or
established by a Federal, State, or other regulatory body; or
(B) The rate schedule negotiated between the contractor and the
Government.
(ii) The rate schedule shall bear the legend ``Appendix A, attached
to and made a part of Contract No. ______,'' and be entitled ``Rate
Schedule.'' Each page shall indicate its number and the total number of
pages comprising Appendix A, as, for example, ``page 1 of 3.'' In
addition to stating the rate applicable to the contract, Appendix A
shall include any applicable rules or regulations (whether established
by the regulatory body, the contractor, or negotiation between the
contractor and the Government) pertaining to the Rate Schedule.
Appendix A may provide for payment to the contractor of a nonrecurring,
nonrefundable fee not exceeding $1,000 for the costs of connecting the
contractor's facilities to, and disconnecting them from, the
Government's facilities, if the contract period is less than 6 months.
In all other instances where a connection charge is involved, the
``Connection Charge'' clause (48 CFR (FAR) 52.241-9) and Appendix C
(see paragraph (a)(4) of this section) shall be included in the
contract.
(3) Appendix B. Include the service specifications applicable to
the contract, which shall consist of a specially drafted attachment to
the contract bearing the legend ``Appendix B, attached to and made a
part of Contract No.______,'' and the title of the appropriate service
specifications. Each page shall indicate its number and the total
number of pages comprising Appendix B, as, for example, ``page 1 of
3.'' Such appendix shall contain as a minimum--
(i) The premises to be served;
(ii) An estimate of the service requirements;
(iii) The point of delivery to the Government;
(iv) A description of the service;
(v) A statement of how the service is to be measured for purposes
of billing; and
(vi) A statement of the capacity and flow of the service.
(4) Appendix C. Include the connection charge schedule required
whenever the contract includes the connection charge clause at 48 CFR
(FAR) 52.241-9 or the termination clause at 48 CFR (FAR) 52.241-10. It
shall bear the legend ``Appendix C, attached to and made a part of
Contract No. ______,'' and be entitled ``Connection Charge Schedule.''
Each page shall indicate its number and the total number of pages
comprising Appendix C, as, for example, ``page 1 of 3.'' The appendix
shall contain as a minimum a detailed description of the new facilities
to be furnished by the contractor.
(5) Include any contract clauses required by 1841.501 or 48 CFR
(FAR) 41.501.
(b) Any negotiated utility service contract estimated not to exceed
$2,500 annually shall consist of--
(1) Standard Form 26 (48 CFR (FAR) 53.215-1(b));
(2) An Appendix A (see paragraph (a)(2) of this section); and
(3) Any contract clauses required by 1841.501 or 48 CFR (FAR)
41.501.
1841.205-73 Authorization for procurement of wellhead natural gas.
(a) Acquisition of wellhead natural gas and interstate
transportation of the natural gas to locally franchised distribution
utility companies' receipt points (city gate) is considered the
procurement of supplies rather than the procurement of public utility
services described in 48 CFR (FAR) part 41. Therefore, wellhead natural
gas and interstate transportation of such gas should be obtained
directly by NASA under applicable authorities and FAR procedures
governing the acquisition of supplies. Redelivery of the gas from the
city gate to the NASA facility is considered a utility service since it
is provided only by the locally franchised utility. GSA is responsible
for obtaining an appropriate contract for the redelivery service in
accordance with 48 CFR (FAR) 41.204.
(b) GSA provides assistance to Federal agencies in the procurement
of natural gas wellhead supplies. Contracting officers requiring
assistance in determining the feasibility of procuring natural gas
supplies on a facility by facility basis may contact General Services
Administration, Public Building Services, Public Utilities Division,
Code PPU ((202) 501-3994). In contacting GSA, contracting officers
should provide data pertaining to present gas usage exceeding 50,000
Mcf per year. GSA has found that 50,000 Mcf is the annual volume below
which wellhead purchases may not be economically feasible.
1841.205-74 Utility service narrative.
(a) Before initiating negotiations, the contracting officer shall
submit a Utility Service Narrative for proposed procurements for new
utilities services, renegotiations or extensions of existing utility
services, or existing contracts that require a negotiation for change
of rate schedules, to the Associate Administrator for Procurement (Code
[[Page 16062]] HS), NASA Headquarters. The Utility Service Narrative
shall include--
(1) A brief technical description of the service required or being
furnished;
(2) Justification of the reasonableness of the proposed rate;
(3) An outline of the field installation's proposed negotiation
tactics, basis for position, and any alternative position;
(4) An estimate of the annual cost of service; and
(5) Other related items, as applicable, such as connection charges,
termination liability, facilities charges, requirement for Government
capital costs, or any unusual factors affecting the procurement.
(b) The Associate Administrator for Procurement (Code HS), with the
coordination of the Environmental Management Division (Code JE), will
review the information submitted under paragraph (a) of this section.
If NASA Headquarters desires to participate in the negotiations, the
Associate Administrator for Procurement (Code HS), NASA Headquarters,
shall inform the contracting officer within 30 days after receipt of
the Utility Service Narrative.
1841.205-75 Contracts requiring Headquarters approval.
Contracts and supplemental agreements for utility services shall be
submitted to the Associate Administrator for Procurement, NASA
Headquarters (Code HS), for approval as required by 48 CFR 1804.7203
and 1807.71.
1841.206 Interagency agreements.
(a) The Department of Defense (DOD) enters into areawide fuel oil
and other energy-service contracts. DOD areawide contracts provide that
the contractor shall, upon receipt of an order in the form prescribed
by the contract, furnish the service involved without further
negotiations as to rates and charges, in accordance with the
established and field rate schedules applicable to the service.
(b) When procuring utility services from another Government agency
by cross-servicing, the procurement office shall use a memorandum of
understanding specifying the services to be provided and the conditions
under which they will be supplied. A Utility Service Narrative shall be
submitted in accordance with 1841.205-74.
Subpart 1841.4--Administration
1841.402 Rate changes and regulatory intervention.
(a) When the contractor notifies the contracting officer as
provided in the change of rates clause at 48 CFR (FAR) 52.241-7, or
whenever the contractor requests that rate changes be negotiated, as
provided in the change in rates clause at 48 CFR (FAR) 52.241-8, the
contracting officer shall notify the Associate Administrator for
Procurement, NASA Headquarters (Code HS) and the Environmental
Management Division, NASA Headquarters (Code JE). The notification
shall include sufficient information to permit a determination of the
monetary effect of the proposed changes, a recommendation under
paragraph (a) (1) or (2) of this section, and the basis for the
recommendation.
(1) When notice is received that the contractor has filed an
application for rate changes before the local regulatory body, the
contracting officer shall recommend whether or not the Government
should intervene at the hearing on the application. If it is
recommended that the Government intervene, the recommendation shall be
accompanied by a statement containing the basis for intervention and
the extent to which the installation can support intervention by
presenting testimony, preparing exhibits, and furnishing legal counsel.
(2) When notice is received that the contractor requests that rate
changes be negotiated, the contracting officer shall recommend the
position to be taken by the Government regarding the rate changes and
state the extent to which installation personnel are available to
support this position.
(b) The Associate Administrator for Procurement, NASA Headquarters,
with the technical assistance of the Environmental Management Division
(Code JE), NASA Headquarters, shall furnish the contracting officer a
recommendation concerning the proposed rate changes and the extent to
which NASA Headquarters will participate in the intervention before the
local regulatory body or in negotiations with the contractor. Before
recommending any action, the Associate Administrator for Procurement,
NASA Headquarters shall, as necessary, coordinate with other staff
offices or divisions, or other Government agencies. The contracting
officer shall await the instructions of the Associate Administrator for
Procurement, NASA Headquarters, for at least 30 calendar days before
submitting the matter to GSA (see 48 CFR (FAR) 41.402(b)) or taking
other action concerning the proposed rate changes.
Subpart 1841.5--Solicitation Provision and Contract Clauses
1841.501 Solicitation provision and contract clauses.
The contracting officer shall insert the clause at 48 CFR 1852.241-
70, Renewal of Contract, whenever it is desirable that the utility
service be provided under the same terms and conditions for more than 1
year (see 1841.205-70).
PART 1842--CONTRACT ADMINISTRATION
1842.202-70 [Amended]
29. In section 1842.202-70, paragraph (d), ``Headquarters Supply
and Equipment Management Office, Code JLE'' is revised to read
``Headquarters Logistics Management Office, Code JLG''.
Subpart 1842.73 [Added]
30. Subpart 1842.73 is added as set forth below:
Subpart 1842.73--Audit Tracking and Resolution
1842.7301 NASA external audit followup system.
(a) This section implements OMB Circular No. A-50, NASA Management
Instruction (NMI) 9970.1A, Audit Followup, and NASA Audit Followup
Handbook 9970.2, which provide more detailed guidance. Recommendations
for external audits (contracts and OMB Circulars No. A-128, Audits of
State and Local Governments, and A-133, Audits of Institutions of
Higher Learning and Other Non-Profit Institutions) shall be resolved by
formal review and approval procedures analogous to those at 48 CFR
1815.807-71.
(b) The external audit followup system tracks all contract and OMB
Circular A-128 or A-133 audits where NASA has resolution and
disposition authority. The objective of the tracking system is to
ensure that audit recommendations are resolved as expeditiously as
possible, but at a maximum, within 6 months of the date of the audit
report.
(c) (1) The identification and tracking of contract audit reports
under NASA cognizance are accomplished in cooperation with DCAA by
means of the DCAA form, Contract Audit Followup Summary Sheet. The use
of this form by DCAA and NASA is covered in Chapter 6 of the NASA Audit
Followup Handbook.
(2) Identification and tracking of A-128 and A-133 audit reports
are accomplished in cooperation with the [[Page 16063]] NASA Office of
the Inspector General (OIG) by means of a transmittal memorandum. A
transmittal memorandum is sent by the OIG to the procurement officer of
each NASA field installation having an award (contract, grant, or other
agreement) covered by the audit report. The transmittal memorandum will
identify whether there were any audit findings.
(d) (1) Chapter 6 of the NASA Audit Followup Handbook identifies
which contract audit reports are reportable semiannually to Code HC.
(2) Only trackable A-128 and A-133 audit reports involving the
following shall be reported semiannually to Code HC--
(i) A significant management control issue; or
(ii) For an individual NASA award, either the lower of 10 percent
or $10,000 of the costs incurred in the period covered by the audit are
questioned; or for institution-wide issues, the lower of 10 percent or
$10,000 of the total costs incurred involving Government funds for the
period covered by the audit are questioned.
(e) (1) The resolution and disposition of contract audits is
covered by Chapter 6 of the NASA Audit Followup Handbook.
(2) The resolution and disposition of A-128 and A-133 are handled
as follows:
(i) Audit findings pertaining to an individual NASA award are the
responsiblility of the procurement officer administering that award.
(ii) Audit findings having an institution-wide impact are the
responsibility of the cognizant Federal agency. OMB's January 6, 1986,
Federal Register Notice (51 FR 552), titled ``Federal Agencies
Responsible for Cost Negotiation and Audit of State and Local
Governments,'' provides cognizant agency assignments for OMB Circular
A-128. For organizations subject to OMB Circular A-133, the cognizant
agency is either assigned pursuant to OMB Circular A-88, ``Indirect
Cost Rates, Audit, and Audit Followup at Educational Institutions,'' or
if not formally assigned, it is based on which Federal agency provided
the largest amount of funds for the audited period. In such cases where
NASA is the cognizant Federal agency, audit resolution and disposition
is the responsibility of the procurement officer for the ``cognizant
field installation,'' i.e., the field installation having the largest
total award dollar amount for the audited period. A copy of the
memorandum dispositioning the findings shall be provided by each field
installation having resolution responsibility for the particular report
to the OIG Center office within whose geographic area of responsibility
the audited organization is located.
PART 1845--GOVERNMENT PROPERTY
1845.106-70 [Amended]
31. In section 1845.106-70, paragraph (e), ``Supply and Equipment
Management Office (Code JLE)'' is revised to read ``Logistics
Management Office (Code JLG)''.
1845.405 [Amended]
32. In section 1845.405, paragraph (b), ``Supply and Equipment
Management Office (Code JLE)'' is revised to read ``Logistics
Management Office (Code JLG)'' and ``Code IRD'' is revised to read
``Code IR''.
1845.407 [Amended]
33. In section 1845.407, paragraph (a), ``Supply and Equipment
Management Office (Code JLE)'' is revised to read ``Logistics
Management Office (Code JLG)''.
1845.608-6 [Amended]
34. In section 1845.608-6, ``Supply and Equipment Management Office
(Code JLE)'' is revised to read ``Logistics Management Office (Code
JLG)''.
1845.610-2 [Amended]
35. In section 1845.610-2, ``Supply and Equipment Management Office
(Code JLE)'' is revised to read ``Logistics Management Office (Code
JLG)''.
1845.7203 [Amended]
36. In section 1845.7203, ``Supply and Equipment Management Office
is revised to read ``Logistics Management Office'' and ``Code JLE'' is
revised to read ``Code JLG'' in two occurrences.
1845.7205 [Amended]
37. In section 1845.7205, paragraph (f)(1), ``Code JLE'' is revised
to read ``Code JLG''.
38. In section 1845.7205, paragraph (i), ``Code JLE'' is revised to
read ``Code JLG''.
1845.7213 [Amended]
39. In section 1845.7213, paragraph (c)(1) introductory text,
``Supply and Equipment Management Office (Code JLE)'' is revised to
read ``Logistics Management Office (Code JLG)''.
PART 1851--USE OF GOVERNMENT SOURCES BY CONTRACTORS
40. In section 1851.102, the first sentence of paragraph (b) is
revised to read as follows:
1851.102 Authorization to use Government supply sources.
(a) * * *
(b) The contracting officer shall forward letters of authorization
to the installation's Logistics Management Officer, Attention: Activity
Address Code Coordinator, who will forward them to the Logistics
Management Office, NASA Headquarters (Code JLG), for verification and
transmittal to GSA. * * *
* * * * *
PART 1852--SOLICITATION PROVISIONS AND CONTRACT CLAUSES
1852.208-70, 1852.208-71, 1852.208-72, 1852.208-73, 1852.208-74,
1852.208-76, 1852.208-77, 1852.208-78, 1852.208-79, 1852.208-80,
1852.208-83 [Removed]
41. Sections 1852.208-70, 1852.208-71, 1852.208-72, 1852.208-73,
1852.208-74, 1852.208-76, 1852.208-77, 1852.208-78, 1852.208-79,
1852.208-80, and 1852.208-83 are removed.
1852.208-75 [Redesignated as 1852.241-70]
42. Section 1852.208-75 is redesignated as section 1852.241-70 and
the introductory text is revised to read as follow:
1852.241-70 Renewal of Contract.
As prescribed in 48 CFR 1841.501(b), insert the following clause:
* * * * *
PART 1870--NASA SUPPLEMENTARY REGULATIONS
1870.103 NASA acquisition of investigations.
43. In Appendix C to Appendix I of section 1870.103, Section II,
paragraph A.3.a., ``Office of Policy Coordination and International
Relations, Code IRD'' is revised to read ``Office of External
Relations, Code IR'' and in paragraph A.3.d., ``Code IRD'' is revised
to read ``Code IR'' and ``Office of Policy Coordination and
International Relations'' is revised to read ``Office of External
Relations''.
[FR Doc. 95-7612 Filed 3-28-95; 8:45 am]
BILLING CODE 7510-01-M
