§ 18-3.306-1

Justification required.

(a) When a determination is required to be made in NASA Headquarters pursuant to the provisions of Subparts 183.2 and 18-3.3, and preparation of a procurement plan is not required (see § 18-3.852-2), field installations shall prepare a memorandum setting forth a detailed justification (including supporting documents or information) of the reasons why it is necessary to place a contract by negotiation rather than by formal advertising. The following information shall be included in the justification:

(1) A brief and concise description in nontechnical language of the supplies or services to be procured.

(2) The authority selected for negotiation and a complete statement of the facts and circumstances which clearly illustrates the conditions described for use of this authority.

(3) Identification of the program with which the proposed procurement is associated, name of the project, project approval number, and the date and authority by which the project approval was granted, and the technical office with which this program and project information was coordinated; a statement that the technical office initiating the re

quirement has concurred in the technical description of the work as set forth in the proposed determination and findings; identification of the technical office that will be responsible for technical monitoring of the contract once it is placed.

(4) The names and addresses of all

sources to which requests for proposals will be issued. If negotiation is to be conducted with only one source, a Justification for Noncompetitive Procurement will be prepared in accordance with § 18– 3.802-2(d).

(5) Any pertinent information obtained, where circumstances required preliminary discussions with potential

sources.

(b) When a determination is required to be made in NASA Headquarters pursuant to the provisions of Subparts 183.2 and 18-3.3, and preparation of a procurement plan is also required (see § 18-3.852-2), field installations shall use the procurement plan as the detailed justification required by paragraph (a) of this section.

(c) In addition to the above, an original and one copy of NASA Form 543, "Justification for Negotiation," shall be submitted with the proposed determination and findings. The original shall be returned to the installation with the determination and findings and the copy shall be retained for Headquarters files. § 18-3.306-2 Preparation and submission.

(a) When § 18-3.306-1 (a) is applicable, installations shall submit four copies of the proposed determination and findings with two copies of the justification (and any other supporting documents Procurement for review and signature of considered necessary) to the Director of appropriate authorities.

(b) When § 18–3.306–1(b) is applicable, installations shall submit four copies of the proposed determination and findings with two copies of the procurement

plan to the Director of Procurement for review and signature of appropriate authorities. When approval of the procurement plan by NASA Headquarters is required (see § 18-3.852-4), the submission under the preceding sentence shall be made concurrently with the

submission of the proposed procurement plan for approval by NASA Headquarters, with two copies of the proposed procurement plan designated as the justification for the proposed determination and findings.

§ 18-3.307 Filing of determinations and findings.

A copy of each determination and findings shall be filed with the contract

(7) A detailed statement setting forth those facts and circumstances that clearly and convincingly establish why formal advertising is not feasible and practicable for the particular procurement.

(8) The proposed type of contract.

tion and findings made pursuant to the authority of sections 2304 (a) (11) through (16), 2306(c), and 2307(c) of Title 10 U.S.C. shall be retained in the files of the NASA installation concerned for a period of six years following the date of each respective determination.

§ 18-3.308 Retention of data with respect to negotiation.

In each case where a purchase or contract is negotiated except under §§ 183.202 to 18-3.206 inclusive, data with respect to the negotiation shall be preserved in the files of the NASA installation concerned for a period of six years following final payment on such contract. With respect to the retention of data to support small purchases, see § 18-3.603-2 (c).

Subpart 18-3.4-Types of Contracts § 18-3.400 Application.

The provisions of 32 CFR Part 3 (Subpart D) are incorporated herein by reference except as to the use of incentive type contracts. Policies and procedures to be followed in the use of incentive contracts are set forth in § 18-3.450. Where special approvals are required under the ASPR provisions incorporated herein by reference the approval of the Director of Procurement is required. (See also § 18-3.302 requiring approval by the Administrator of fixed fees in excess of limitations specified therein.) § 18-3.450 Incentive contracts.

(a) Policy. It is NASA policy to make judicious and effective use of incentive contracts of both the cost and the performance type. Particular care and judgment are required in choosing procurements appropriate for incentive contracts, and in framing and negotiating the specific incentive terms. The procedures set forth below in this § 183.450 are established to:

(1) Effectively seek out procurements that lend themselves to the use of contract incentive provisions;

(2) Avoid the use of incentive provisions in situations where they are unsuited and where their use could have adverse results; and

(3) Ensure, in connection with contracts in which incentive provisions are to be included, that the skills necessary to draft and negotiate the appropriate incentive provisions are available to NASA procurement offices.

(b) Responsibilities of the Director of Procurement. In order to implement the policy objectives of paragraph (a) of this section for use of incentive contracts,

the Director of Procurement will perform the following functions:

(1) Review, with Headquarters Program Offices and with NASA field installations, as necessary, forthcoming procurements in order to select, well in advance, those procurements which appear to lend themselves to the inclusion of incentive features;

(2) Provide or arrange for guidance and technical assistance to procurement offices in connection with the drafting and negotiation of incentive provisions in those contracts approved in advance by the Director of Procurement, for application of incentive provisions:

(3) Review and make recommendations to field installations with regard to proposals made by them as to the use of incentive provisions in forthcoming contracts;

(4) Appraise the capability within NASA to select, negotiate, and administer incentive contracting and assist in making required training arrangements;

(5) Study, in conjunction with the Directors of Management Information Systems Division and the Financial Management Division, Office of Administration, NASA Headquarters, the linking of incentive provisions to PERT-Cost;

(6) Maintain close contact with the Department of Defense in the incentives field and keep informed of other studies, literature, or developments within the Government and industry bearing on incentive contracting;

(7) Develop more precise policy guidelines governing use of incentive provisions; and

(8) Report quarterly to the Associate Administrator regarding the progress being made within NASA to utilize incentive provisions.

In carrying out the functions specified in this paragraph (b), the Director of Procurement will utilize the assistance of the Headquarters Program Offices, the General Counsel, and the Audit Division.

(c) Approvals required before selection of contracts for inclusion of incentive provisions.

(1) No procurement will be selected for the inclusion of an incentive provision until such inclusion has been recommended or approved in advance by the Director of Procurement. However, such advance recommendation or ap

(a) Reasonable competition means obtaining a sufficient number of quotations from qualified sources of supply so as to assure that the procurement is fair to the Government, price and other factors considered, including the administrative cost of the purchase. In arriving at the number of quotations to be solicited, due consideration will be given to the cost of the proposed solicitation in relation to the potential benefits to be derived by the Government consistent with good business.

(b) Reasonable coverage of the market for small purchases does not ordinarily require going outside the trade area in which the procurement office is located to obtain quotations. However, competition shall not be limited to suppliers of well-known and widely distributed

makes or brands, nor shall quotations be solicited purely on a selective personal preference basis. New supply sources, disclosed through trade journals

or other media, shall be continuously

reviewed and, when appropriate, added

to the list of available sources.

(c) The following factors influence the number of quotations required in connection with any particular purchase:

(1) The nature of the article or service to be procured, and whether highly competitive and readily available in several makes or brands, or relatively noncompetitive;

(2) Information obtained in making recent purchases of the same or similar item;

(3) The urgency of the proposed purchase;

(5) Past experience concerning specific dealers' prices.

(d) Solicitation of quotations may be effected orally or in writing. Written solicitation should be used only in circumstances where:

(1) The suppliers are located outside the local area;

(2) Special specifications are involved; (3) A large number of items is included in a single proposed procurement;

or

(4) Obtaining oral quotations is not considered efficient.

(e) Where it is the practice for suppliers to furnish standing price quotations on supplies or services required on an intermittent and recurring basis, this information may be used in lieu of obtaining individual quotations each time a purchase is contemplated. In such cases, the purchaser shall assure that the price information is current and that the Government obtains the benefit of maximum discounts.

§ 18-3.603-2 Data to support small purchases.

(a) The manner of securing quotations and the nature and extent of inforshould be limited to only that deemed mation to be required for small purchases necessary to conclude purchase action.

(b) The following are illustrative of the extent to which quotation information should be recorded:

(1) Oral solicitations-When

oral

price quotations are obtained, informal records should be established which will reflect clearly the propriety of placing the order at the price paid with the supplier concerned. In most cases, this

will consist merely of showing the names of the suppliers contacted and the prices

and other terms and conditions quoted by each. Handwritten notations on the Government purchase action request form, or whatever medium the purchaser is using as his basis for making the purchase, are satisfactory for this purpose.

(2) Written solicitations-Retention in the purchase files of written quotations received, or references to printed price lists used, will usually suffice as the record supporting the price paid.

and issuing the appropriate purchase document. The retention of such data in the purchase files for use in subsequent reference, or as administratively required for management review, should be limited in time and quantity to the minimum necessary for such use.

§ 18-3.604 Imprest Fund.

For use of Imprest Funds, see NASA Management Instruction 7-3-4.

§ 18-3.605

Purchase order forms.

§ 18-3.605-1 Standard Form 44.

(a) General. Purchase Order-Invoice-Voucher (Standard Form 44) consists of four copies; i.e., a seller's invoice, seller's copy of invoice, receiving report, and memorandum copy. The use of an additional copy is authorized when essential to operating procedures.

(b) Limitations on use. Standard Form 44 is authorized for accomplishing small purchases only when all of the following conditions are satisfied:

(1) The transaction is not in excess of $2,500;

(2) The supplies or services are immediately available from the local trade

and are for use when, in the judgment of the procuring office, the use of a combined order-invoice, receiving report, and voucher will simplify the procurement process. Primary uses of Standard Form 147 are (1) as a purchase order for small purchases and (2) as a delivery order for ordering or scheduling delivery against an established contract. The use of Standard Form 147 as a delivery order against a blanket purchase order is in keeping with its intended use.

(b) Availability of form. (1) Standard Form 147 is available in 6-part sets from General Services Administration regional offices, where overprinting is not required and may be ordered in the same manner as other standard forms.

(2) Standard Forms 147 and 148 may be ordered overprinted with agency name, address, and serial number; and with special weight paper, length of carbons, or other items as specified by the ordering agency. The format of the form, the color of the paper, and the number of copies shall not be changed.

(c) Special instructions. (1) The use of the forms contemplates that the vendor will utilize copy 1 (original) as his invoice in billing the Government. However, in furtherance of the policy of encouraging vendors to make consolidated periodic billings in instances where several orders have been placed with the same dealer in the same billing period, agencies are requested to instruct vendors to make consolidated periodic billings on their own invoices or statement forms supported by originals of the Standard Forms.

(2) When procurement documented on the forms is paid for in cash, copy 1 of Standard Form 147 should be marked paid and signed and dated by the vendor or agent on the face thereof in the usual commercial manner. The vendor's certificate need not be signed when the form is receipted for cash payment. Cash register receipts or other commercial receipts may be attached in lieu of signature by the vendor.

§ 18-3.605-3 NASA Form 177.

NASA Form 177 may be used to make small purchases in lieu of Standard Form 44 or 147 where its use is determined to be more efficient or economical by the procuring installation.