§ 18-3.605-4 Ship and quote form. The NASA Ship and Quote form may be used to make small purchases in lieu of Standard Form 44, 147, or NASA Form 177 where the following conditions apply: (a) The material or supplies to be ordered to not exceed $250, except that the procurement officer may authorize use of this form for small purchases in excess of $250 where he determines in writing that its use is more efficient or economical than other methods; (b) The current price can be established with reasonable accuracy by reference to catalogs, price lists, recent purchases, or advertisements; (c) The specifications are clear and capable of only one interpretation; and (d) The order is for supplies or minor equipment (tools, etc.) or for minor services, and the supplier's standard commercial guarantee is acceptable. § 18-3.606 Blanket purchase agreement method. § 18-3.606-1 General. The blanket purchase agreement method provides a means of establishing "charge accounts" with qualified sources of supply to cover anticipated small purchases, as required, of readily available items of the same general category. It obviates the need for the issuance of a multiplicity of individual purchase instruments for small quantities of supplies. To the extent practicable, blanket purchase agreements for like items should be placed concurrently with more than one supplier. All potential sources in the local trades area shall be given an equal opportunity to furnish supplies or services under blanket purchase agreements. In carrying out this policy, the following procedures should be followed: (a) Generally, not less than three or more than four blanket purchase agreements should be placed concurrently for like items; and (b) Requests exceeding $250 should be placed after negotiating with each blanket purchase agreement holder, unless special circumstances do not permit. In such instances the file should indicate the nature of these special circumstances. § 18-3.606-2 Establishment of blanket purchase agreement. Blanket purchase agreements may be established by the issuance of a purchase order which shall provide that: (a) The supplier shall furnish the supplies or services, described therein in general terms, if and when requested by the contracting officer or his authorized representative during a specified period and within a stipulated aggregate amount: Provided, However, that no individual request shall exceed $2,500; (b) The Government is obligated only to the extent of such requests as are actually made against the blanket purchase agreement; (c) The supplier's established price lists and discounts shall apply to all requests issued against the blanket purchase agreement; (d) Requests shall generally be made orally, except that informal correspondence may be used when more convenient; (e) All delivery tickets issued by the supplier shall fully identify the blanket purchase agreement, the date the request was made, the items, the prices, and Government employee who received the other relevant data, and be signed by the items; and (f) The supplier shall submit an itemized invoice not less frequently than once each month, or upon expiration of the blanket purchase agreement, whichever occurs first, covering all deliveries made under the blanket purchase agreement not previously invoiced and paid for, with payment to be made on the basis of this invoice. § 18-3.606-3 Conditions for use. Blanket purchase agreements are authorized when: (a) There is a repetitive need for small quantities of supplies or services of closely related types, such as electrical supplies, plumbing supplies, repair parts or services, or miscellaneous items of hardware; (b) The maximum period of time covered by one blanket purchase agreement shall not exceed 3 months or extend beyond the fiscal quarter in which issued and the maximum aggregate amount of requests to be issued against one blanket purchase agreement shall not exceed $15,000; (c) No individual request issued against one blanket purchase agreement shall exceed $2,500; and (d) The use of individual purchase instruments is deemed administratively costly to the Government. § 18-3.606-4 Fiscal control. The contracting officer shall maintain informal records of the requests made against each blanket purchase agreement, so as to ensure that the value of requests made does not exceed available funds and that the designated monetary limitations are not exceeded. § 18-3.606-5 Further guidance. For further guidance in connection with the use of blanket purchase agreements, see FPR 1-3.606. § 18-3.607 Use of other NASA forms. Where necessary, small purchases may also be effected by the use of a negotiated (two-party) formal contract, as, for example, where the procurement is (a) classified or (b) requires specific contract provision relating to technical inspection or test, specifications changes, Government-furnished property, insurance, patents, price adjustments, or the like. Subpart 18-3.7-Negotiated § 18-3.700 Scope of subpart. This subpart prescribes policy and procedures with respect to the establishment and use of negotiated overhead rates in NASA cost-reimbursement type contracts and subcontracts. The term negotiated final overhead rate as used in this Part 18-3, means a percentage or dollar factor which expresses the ratio mutually agreed upon by NASA and the contractor, at the close of a regularly stated period (preferably the contractor's fiscal year), of allowable indirect expense incurred in the period to direct labor, manufacturing cost, cost of sales, or other appropriate base of this same period. Such rates are used as a means of determining the amount of reimbursement under a contract for the applicable indirect cost and are designated "postdetermined" overhead rates. In certain circumstances involving educational institutions, negotiated final overhead rates may be used as a means of determining the amount of reimbursement for the applicable indirect costs to be incurred during a future period of contract performance; in such cases, they are termed "predetermined" overhead rates. (See § 18-3.7042(b).) § 18-3.701-2 Provisional overhead rate. The term provisional overhead rate as used in this Part 18–3, means a tentative overhead rate established for interim billing purposes pending negotiation of the final overhead rate. Provisional overhead rates are incorporated in the contract and require an amendment to change. § 18-3.701-3 Overhead (indirect costs). The term overhead (indirect costs) as used in this Part 18-3, includes, but is not limited to, the general groups of indirect expenses such as those generated in manufacturing departments, engineering departments, tooling departments, general and administrative departments, and, if applicable, indirect costs accumulated by cost centers within these general groups. In the case of contractors using fund accounting systems (e.g., educational institutions), the term includes, but is not limited to, the general groups of expenses, such as general administration and general expense, maintenance and operation of physical plant, library expenses, and use charges for buildings and equipment. § 18-3.701-50 Negotiating authority. The term negotiating authority as used in this Part 18-3, means the office designated by the Office of Procurement to conduct the negotiation of final overhead rates with a contractor. § 18-3.702 Purpose. The major purposes of negotiated final overhead rates are: (a) to effect uniformity of approach in cases where more than one contract or one or more field installations and the Department of Defense are involved with the same contractor; (b) to effect economy in administrative effort; and (c) to promote timely settlement of reimbursement claims. § 18-3.703 Primary use. Negotiated final overhead rates are authorized for use primarily in cost-reimbursement type contracts for research and development with commercial organizations and non-profit or educational institutions. They may also be used in other cost-reimbursement type contracts after a determination is made by the procurement officer that their use is advantageous to the Government. Where it is not apparent that any one of the major purposes enumerated in § 18-3.702 results, or will result, by the use of negotiated final overhead rates, indirect costs will be negotiated on the basis of an advisory audit report. § 18-3.704 Contract clauses. NEGOTIATED OVERHEAD RATES (a) Notwithstanding the provisions of the clause of this contract entitled "Allowable Cost, Fixed Fee, and Payment," the allowable indirect costs under this contract shall be obtained by applying negotiated overhead rates to bases agreed upon by the parties as specified below. (b) The contractor, as soon as possible but not later than ninety (90) days after the expiration of each period specified in the Schedule, shall submit to the Contracting Officer, with a copy to the cognizant audit activity and the Office of Procurement, NASA Headquarters, a proposed final overhead rate or rates for that period based on the contractor's actual cost experience during that period, together with supporting cost data. Negotia tion of final overhead rates by the contractor and the negotiating authority shall be undertaken as promptly as practicable after receipt of the contractor's proposal. (c) Allowability of costs and acceptability of cost allocation methods shall be determined in accordance with Part 15, Subpart 2, of the NASA Procurement Regulation as in effect on the date of this contract. (d) The results of each negotiation shall be set forth in a modification to this contract which shall specify (1) the agreed final rates, (11) the bases to which the rates apply, and (111) the periods for which the rates apply. (e) Pending establishment of final overhead rates for any period, the contractor shall be reimbursed either at negotiated provisional rates as provided in the Schedule or at billing rates acceptable to the Contracting Officer subject to appropriate adjustment when the final rates for that period are established. To prevent substantial over or under payment, the provisional or billing rates may, at the request of either party, be revised by mutual agreement, either retroactively or prospectively. Any such revision of negotiated provisional rates provided in the Schedule shall be set forth in an amendment to this contract. (f) Any failure by the parties to agree on any final rate or rates under this clause shall be considered a dispute concerning a question of fact for decision by the Contracting Officer within the meaning of the "Disputes" clause of this contract. § 18-3.704-2 Contracts with educational institutions. (a) Insert the following clause in contracts with educational institutions where postdetermined overhead rates are to be used pursuant to this Part 18-3. NEGOTIATED OVERHEAD RATES (a) Notwithstanding the provisions of the clause of this contract entitled "Allowable Cost and Payment," the allowable indirect costs under this contract shall be obtained by applying negotiated overhead rates to bases agreed upon by the parties, as specified below. (b) The contractor, as soon as possible but not later than six (6) months after the expiration of each period specified in the Schedule shall submit to the Contracting Officer, with a copy to the cognizant audit activity and the Office of Procurement, NASA Headquarters, a proposed final overhead rate or rates for that period based on the contractor's actual cost experience during that period, together with supporting cost data. Negotiation of final overhead rates by the contractor and the negotiating authority shall be undertaken as promptly as practicable after receipt of the contractor's proposal. (c) Allowability of costs and acceptability of cost allocation methods shall be determined in accordance with Part 15, Subpart 3, of the NASA Procurement Regulation as in effect on the date of this contract. (d) The results of each negotiation shall be set forth in a modification to this contract which shall specify (1) the agreed final rates, (11) the bases to which the rates apply, and (iii) the periods for which the rates apply. (e) Pending establishment of final overhead rates for any period, the contractor shall be reimbursed either at negotiated provisional rates as provided in the Schedule or at billing rates acceptable to the Contracting Officer subject to appropriate adjustment when the final rates for that period are es tablished. To prevent substantial over- or under-payment, the provisional or billing rates may, at the request of either party, be revised by mutual agreement either retroactively or prospectively. Any such revision of negotiated provisional rates provided in the Schedule shall be set forth in an amendment to this contract. (f) Any failure by the parties to agree on any final rate or rates under this clause shall be considered a dispute concerning a question of fact for decision by the Contracting Officer within the meaning of the "Disputes" clause of this contract. (b) Provision may be made in cost reimbursement type research and development contracts with educational institutions for payment of reimbursable indirect costs on the basis of predetermined overhead rates, provided that this basis is used with respect to all contracts with an institution. Insert the following clause in contracts with educational institutions where such negotiated overhead rates are to be used pursuant to this Part 18-3. NEGOTIATED OVERHEAD RATES (a) Notwithstanding the provisions of the clause of this contract entitled "Allowable Cost and Payment," the allowable indirect costs under this contract shall be obtained by applying predetermined overhead rates to bases agreed upon by the parties as specified below. (b) The contractor, as soon as possible but not later than three (3) months after the expiration of his fiscal year, shall submit to the Contracting Officer, with a copy to the cognizant audit activity and the Office of Procurement, NASA Headquarters, a proposed predetermined overhead rate or rates based on the contractor's actual cost ex perience during that fiscal year, together with supporting cost data. Negotiation of predetermined overhead rates by the contractor and the negotiating authority shall be undertaken as promptly as practicable after receipt of the contractor's proposal. (c) Allowability of cost and acceptability of cost allocation methods shall be determined in accordance with Part 15, Subpart 3, of the NASA Procurement Regulation. (d) The results of each negotiation shall be set forth in an amendment to this contract, which shall specify (1) the agreed predetermined overhead rates, (ii) the bases to which the rates apply, (iii) the fiscal year unless the parties agree to a different period for which the rates apply, and (iv) the specific items treated as direct costs or any changes in the items previously agreed to be direct costs. (e) Pending establishment of predetermined overhead rates for any fiscal year or different period agreed to by the parties, the contractor shall be reimbursed either at the rates fixed for the previous fiscal year or other period or at billing rates acceptable to the Contracting Officer, subject to appropriate adjustment when the final rates for that fiscal year or other period are established. (f) Any failure by the parties to agree on any predetermined overhead rate or rates under this clause shall not be considered a dispute concerning a question of fact for decision by the Contracting Officer within the meaning of the "Disputes" clause of this contract. If for any fiscal year or other period specified in the Schedule of this contract the parties fail to agree to a predetermined overhead rate or rates, it is agreed that the allowable indirect costs under this contract shall be obtained by applying negotiated final overhead rates in accordance with the terms of the "Negotiated Overhead Rates (Postdetermined)" clause set forth in 3.704-2 of the NASA Procurement Regulation as in effect on the date of this contract. (g) Allowable indirect costs for the period until the end of the contractor's fiscal year during which performance begins shall be obtained by applying the predetermined overhead rate set forth in the Schedule to the bases set forth therein. predetermined (c) When overhead rates are to be used and no such rate or rates have been established for the contractor's current fiscal year, the contracting officer shall obtain from the contractor during the contract negotiations a proposal for a predetermined overhead rate or rates to be applied until the end of such fiscal year. As far as practicable, such proposal should be based on the contractor's cost experience under similar contracts together with supporting cost data. The overhead rate or rates for such initial period shall be predetermined by negotiation and set forth in the contract schedule. The schedule shall also include the bases to which the rates apply and the period for which the rates apply. Pending establishment of predetermined overhead rates for the initial period, the contractor shall be reimbursed at billing rates acceptable to the contracting officer subject to appropriate adjustment when the final rates for that period are established. § 18-3.705 Policy. Since many NASA contractors are under the negotiated overhead rate pro cedure with the Department of Defense, it is the policy of NASA to participate in joint negotiations with the Department of Defense. The NASA participant will be the Office of Procurement (Code KDC), or the NASA procurement office designated by the Office of Procurement, NASA Headquarters. (a) NASA contractors not under the Department of Defense negotiated overhead rate procedure will be under NASA cognizance and the negotiations will be conducted by the Office of Procurement, or by the procurement office designated as the negotiating authority by the Office of Procurement (Code KDC), with selected field installations participating. (b) A contractor currently under Department of Defense cognizance may eventually be transferred to NASA cognizance because of the shift in procurement predominance. Such transfer will be arranged by the Office of Procurement (Code KDC) which will designate the negotiating authority. (a) When a contractor is under NASA cognizance, the procedure for the establishment and use of negotiated final overhead rates will generally consist of submission by the contractor of an overhead rate proposal, obtaining an advisory audit report from the cognizant auditor, holding a prenegotiation conference for review of the contractor's pro posal and the advisory audit report, conduct of negotiation, preparation of a negotiation report or summary, and execution of contract amendments. (b) The contractor shall submit a copy of his proposal to the contracting officers of each NASA installation with which he has contracts, with a copy to the cognizant audit activity and the Office of Procurement (Code KDC). (c) The cognizant audit activity will review the contractor's overhead rate proposal using Part 18-15 of this chapter as a basis for determining allowable costs. An advisory audit report will be submitted to the Procurement Officer of each NASA field installation having a contract with the contractor and a copy to the cognizant NASA Regional Audit Office and to the Office of Procurement (Code KDC). Such report shall set forth the findings of the audit activity including the results of discussion of such findings with the contractor. (d) A prenegotiation conference will be held by the negotiating authority with attendance by the auditor, representatives of NASA field installations, as designated by the Office of Procurement, and other Government procurement and audit activities interested in/or planning to attend the negotiations. This conference will relate to the areas of difference between the advisory audit report and the contractor's proposal, any other factors pertaining to the negotiations, decide upon the approach to the negotiations and establish a consolidated negotiation position. As a further aid to the negotiating authority, a representative of the audit activity and/or a representative of the NASA Audit Division will, upon request, attend the negotiation conference. (e) The negotiation conference will be conducted by the negotiating authority designated by the Office of Procurement (Code KDC). The allowability of costs and methods of cost allocation will be governed by Part 18-15 of this chapter. An agreement will be negotiated on final overhead rates, the specific items treated as direct charges and the provisional overhead rates if such rates are to be specified in the contract. (f) At the completion of the negotia tion, the NASA negotiating authority will prepare a negotiation report listing the names, titles, and organizations of those in attendance, the rates negotiated, the reasons for variation from the audit report, if any, the period of rate applicability, the basis for the determination of such rates and, where applicable, the provisional rates agreed upon for application in the succeeding period. Such report shall become the basis for amending the affected contracts and shall become a part of the contract file. Sufficient copies of the report shall be forwarded by the negotiating authority to the Office of Procurement (Code KDC), for distribution to all interested activities. (g) Contract amendments will incorporate the negotiated final overhead rates, the bases to which they apply, and the period of rate applicability. |