[Federal Register Volume 59, Number 47 (Thursday, March 10, 1994)]
[Unknown Section]
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From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-5145]
[[Page Unknown]]
[Federal Register: March 10, 1994]
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NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
48 CFR Part 1807
Procurement Plan Contents Regarding Strategies to Encourage Cost
Realism
AGENCY: Office of Procurement, Procurement Policy Division, National
Aeronautics and Space Administration (NASA).
ACTION: Interim rule with request for comments.
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SUMMARY: NASA has revised the NASA FAR Supplement to address how cost
realism will be included in procurement plans. Procurement plans should
included how the offeror will be advised of the importance of cost
realism, how cost realism will factor into the evaluation and selection
decision, how cost realism will be monitored, and how incentives will
be offered through contract provisions.
DATES: Effective Date: This interim rule is effective March 31, 1994.
Comments: Comments are due no later than May 9, 1994.
ADDRESSES: Comments should be addressed to Ms. Deborah O'Neill, NASA
Headquarters, Office or Procurement, Procurement Policy Division (Code
HP), Washington, DC 20546.
FOR FURTHER INFORMATION CONTACT: Ms. Deborah O'Neill, telephone: (202)
358-0440.
SUPPLEMENTARY INFORMATION:
Background
Submission by competing proposers of unrealistically low estimated
costs in proposals is a common occurrence in acquisitions where cost is
a factor in the selection decision. Proposers may hope to gain
selection over others by submitting cost proposals which are
unrealistically low. This results in probable cost adjustments being
made, during the source selection process, to the offeror's proposal
based on assumptions by the Government which may or may not be totally
accurate. The probable cost estimate is included in the report to the
Source Selection Official for consideration in making a selection
decision. Subsequently, selected proposals are negotiated upward based
upon the cost adjustments, or else cost overruns are experienced on the
ensuing contracts. The additional guidance on procurement plan
preparation is provided to encourage NASA acquisition planners to
address efforts to promote the submission of realistic cost proposals.
Availability of NASA FAR Supplement
The NASA FAR Supplement, of which this proposed coverage will
become a part, is codified in 48 CFR, chapter 18, and is available in
its entirety on a subscription basis from the Superintendent of
Documents, Government Printing Office, Washington, DC 20402. Cite GPO
Subscription Stock Number 933-003-00000-1. It is not distributed to the
public, wither in whole or in part, directly by NASA.
Regulatory Flexibility Act
NASA certifies that this interim rule will not have significant
economic impact on a substantial number of small entities within the
meaning of the Regulatory Flexibility Act (5 U.S.C. 601, et seq.).
Paperwork Reduction Act
This interim rule does not impose any reporting or record keeping
requirements subject to the Paperwork Reduction Act.
List of Subjects in 48 CFR 1807
Government procurement.
Thomas S. Luedtke,
Deputy Associate Administrator for Procurement.
Accordingly, 48 CFR part 1807 is amended as follows:
1. The authority citation for 48 CFR part 1807 continues to read as
follows:
Authority: 42 U.S.C. 2373 (c)(1).
PART 1807--ACQUISITION PLANNING
1807.170-1 [Amended]
2. In section 1807.170-1, paragraph (d)(4) is added to read as
follows:
1807.170-1 Procurement plans requiring approval by NASA Headquarters.
* * * * *
(d) * * *
(4) Cost realism. To promote the submission of realistic cost
proposals, discuss the following factors--
(i) How the offeror will be advised of the importance of cost
realism (e.g., address cost realism in solicitation provisions);
(ii) How cost realism will factor into the evaluation and selection
decision (e.g., include cost realism in evaluation factors and
evaluation plan (reduce mission suitability scores));
(iii) How cost realism will be monitored and how incentives will be
offered through contract provisions (e.g., recognize cost realism in
award fee provisions).
[FR Doc. 94-5145 Filed 3-9-94; 8:45 am]
BILLING CODE 7510-01-M
