(j) After approval of the contractor's purchasing system, periodic examination of the contractor's operations under such system shall be conducted regularly to determine whether any substantial changes in procedures, initiated by the contractor or as a result of recommendations by the Government, have occurred, as well as to evaluate the contractor's performance under the purchasing system.

(k) Surveys of contractors' purchasing systems and the results thereof (including periodic updatings as contemplated by paragraph (j) of this section) conducted by NASA, as well as those conducted by other Government agencies that are being utilized by NASA, shall be distributed to all procurement offices.

§ 18-3.903-4 Review of individual sub

contracts.

(a) In reviewing or consenting to individual subcontracts, the contracting officer should give appropriate consideration to the following:

(1) Whether the decision to enter into the proposed subcontract is consistent with the contractor's approved “makeor-buy" program, if any (see § 18-3.902);

(2) Whether the proposed subcontract will require the use of Governmentfurnished facilities;

(2) Subcontracts are for items for which there is no competition or for which the proposed prices appear unreasonable;

(3) Close working arrangements or business or ownership affiliations exist between the prime and the subcontractor which may preclude the free use of competition or result in higher subcontract prices than would otherwise be obtained;

(4) A subcontract is being proposed at a price less favorable than that which has been given by the subcontractor to the Government, all other factors such as manufacturing period and quantity being comparable; or

(5) A subcontract is to be placed on a cost-reimbursement, time and materials, labor-hour, fixed-price incentive, or fixed-price redeterminable basis. Where subcontracts have been placed on a cost-reimbursement, time and materials, or labor-hour basis, contracting officers should be skeptical of approving the repetitive or unduly protracted use of such types of subcontacts.

(c) Consent to the placement of individual subcontracts will be limited or qualified to the extent deemed appropriate by use of the following statement:

Consent to the placement of this subcontract is hereby given, but such consent shall not relieve the prime Contractor of any

ter);

(4) Basis for selecting proposed subcontractor, including the degree of competition obtained;

(5) Cost or price analysis or price comparisons accomplished, with particular attention to whether cost or pricing data is current, complete, and correct;

(6) Extent of subcontract supervision; (7) Type of contract used (see § 183.400);

(8) Estimated total extent of subcontracting, including procurement of parts and materials; and

(9) The extent to which the prime contractor has assured the adequacy of the subcontractor's purchasing system. (b) In reviewing subcontracts, careful and thorough evaluation is particularly necessary when:

(1) The prime contractor's purchasing system or performance thereunder is considered inadequate;

be without prejudice to any right or claim of the Government thereunder, and shall not create any obligation on the part of the Government to the subcontractor under this subcontract, nor shall it be interpreted to constitute approval for the subcontractor to receive classified information. § 18-3.903-50

Headquarters review of

major subcontracts.

(a) Procurement officers shall furnish advance notification to the Director of Procurement of the placement, under NASA prime contracts, of all first-tier subcontracts, the dollar value of which is either estimated to be $5,000,000 or more, or which may be anticipated to aggregate $5,000,000 or more with add

ons.

(b) Procedures. (1) When a field installation intends to consent to a proposed subcontract of the type described in paragraph (a) of this section, the information prescribed by subparagraph

(4) of this paragraph shall be transmitted to the Director of Procurement by electrical means, immediately subsequent to completion of review and prior to the issuance of consent.

(2) In the case of subcontracts contemplated under a prime contract issued by the Headquarters Contracts Division (Code BC), such information shall be forwarded to the Director of Procurement by the most expeditious means.

(3) Prime contracts shall be advised that no arrangement as to subcontract award is to be made prior to receipt of consent from the NASA contracting officer or his authorized representative.

(4) The following information shall be transmitted to the Director of Procurement:

(1) Identification of the prime contract-contractor, contract number, type of contract, status (definitive or letter contract), price or estimated cost, and brief description of items or services to be provided;

(ii) Identification of the subcontractsubcontractor, type of subcontract, price or estimated cost, brief description of items or services to be provided, and scope of subcontract work (to be described in clear and concise language); (iii) Verification of consistency of subcontracted effort with the "make-orbuy" program of the prime contractor (proposed deviation from such program will be briefly justified);

(iv) Enumeration of sources considered or solicited for the subcontract;

(v) Justification of the selected

source; and

(vi) Brief summarization of installation findings, highlighting unusual or sensitive aspects and commenting on adequacy of pricing.

(5) Immediately upon receipt of the information prescribed above, the Director of Procurement will forward a copy of such information to the appropriate

(6) The Director of the appropriate Headquarters Program Office(s) and the Director of Procurement wil review such information within the purview of their assigned responsibilities. This review will be accomplished with the minimum of delay so that the installation concern may be advised within 7 work days following the transmission of the subcontract data whether there are any limitations or objections to consenting to the placement of the subcontract.

(7) Upon expiration of 7 work days following transmission of the information specified in subparagraph (4) of this paragraph, or upon receipt of notification from the Director of Procurement, whichever is sooner, and unless otherwise advised, the NASA contracting officer or his authorized representative may consent to the placement of the proposed subcontract.

(8) Nothing contained herein is intended to relieve the contracting officer of his primary responsibilities in the review of proposed subcontracts.

(9) The procedures specified herein shall be made equally applicable to Department of Defense contracting officers performing contract administration functions on behalf of NASA in accordance with field service agreements entered into between NASA and the Military Departments. In order to accomplish this objective, requests made pursuant to such agreements for the performance of contract administration functions which include review of subcontracts will specify this requirement. For the agreement with the Department of the Army, see NASA Management Instruction 2-3-9; with the Department of the Navy, see NASA Management Instruction 2-3-6; and with the Department of the Air Force, see NASA Management Instruction 2-3-4.

As used in this Subpart 18-4.1, the following terms shall apply:

(a) "Architect-engineer services" consist of services required in connection with:

(1) Preparation of designs, plans, drawings, and specifications for a proposed construction project (referred to as Title I Services); and

(2) Supervision and inspection of the construction work (referred to as Title II Services).

(b) Title I Services include:

(1) Preparation of necessary topographical and other field surveys, test borings, and other subsurface investigations;

(2) Preparation of preliminary studies, sketches, layout plans, and reports, including estimates of cost of the proposed project and of all structures, utilities, and appurtenances thereto;

(3) Adaptation of Government designs, drawings, specifications, and standards for buildings and other structures as necessary;

(4) Preparation of final designs, working drawings, specifications, and cost estimates of the proposed project;

(5) Assistance to the contracting officer in preparing invitations for bids or requests for proposals for the required construction work and in evaluating bids or proposals received;

(6) Review and approval of all shop and working drawings submitted by the construction contractor; and

(7) Advice during the construction period relative to interpreting the plans and specifications in the event inspection of the construction is performed by the Government.

(c) Title II Services include complete supervision and inspection of the construction work and preparation of record drawings to show the construction as actually accomplished.

(a) Except as otherwise provided in § 18-4.203-4, the architect-engineer selection board shall perform the following functions:

(1) Collect and maintain data on architect-engineer firms, including information on the qualifications of their members and key employees, past experience on various types of construction projects, and standing in the profession. (U.S. Government Architect-Engineer Questionnaire-Standard Form 251-will be used for this purpose.)

(2) When procurement by contract of architect-engineer services for a particular project is contemplated, review the qualifications of an adequate number of architect-engineer firms and evaluate the architect-engineer firms in accordance with paragraph (b) below. (In making this review and technical evaluation, correspondence and conferences with architect-engineer firms under consideration shall be conducted to the extent deemed necessary.)

(3) Prepare a report for submission to the director of the field installation, recommending, in the order of preference, a minimum of three firms which, after careful evaluation, are considered the best qualified to perform the required services. (This report shall include sufficient details as to the extent of the evaluation and review made and the considerations upon which the recommendations were based.)

(b) In evaluating architect-engineer firms, the architect-engineer selection board shall consider the following factors:

(1) Specialized experience of the firm in the field or fields required;

(2) Capacity of the firm to perform the work within the required time;

(3) Past record of performance on contracts with NASA, other Government agencies, and private industry including such factors as control of costs, quality of work, and ability to meet schedules; and

(4) Geographic location of the firm and its familiarity with the area in which the project is located.

Since it is NASA policy to encourage additional firms to participate in the performance of architect-engineer services for NASA, the architect-engineer selection board shall, to the fullest extent practicable, give favorable consideration to qualified firms not having prior performance experience with NASA.

§ 18 4.203-3 Action by directors of field installations.

Except as otherwise provided in § 184.203-4, the director of the field installation shall review the recommendations of the architect-engineer selection board and shall:

(a) Approve the recommended list of qualified architect-engineer firms as submitted;

(b) Rearrange the order of preference; or

(c) Return the recommendations to the board for such action as he may consider necessary.

The director of the field installation shall advise the board of the final action and shall furnish the contracting officer with a copy of the report and final action thereon which will serve as authorization

to commence negotiation. The list of qualified firms in order of preference is for internal use of NASA, and such information shall not be made known to the firms under consideration.

§ 18 4.203-4 Simplified procedures for procurement estimated to cost $10,000 or less.

When authorized by the director of the field installation, one of the simplified procedures set forth in this § 18-4.203-4 may be used in selecting architectengineer firms to perform services that are estimated to cost $10,000 or less, in lieu of the architect-engineer selection board performing the functions prescribed by § 18-4.203-2(a) (2) and (3), and actions prescribed by § 18-4.203-3.

(a) Selection by the board. After reviewing and evaluating architect

engineer firms in accordance with §§ 184.203-2(a) (2) and 18-4.203-2(b), the board will prepare a report for submission to the contracting officer listing, in the order of preference, a minimum of three firms which, after careful evaluation, are considered the best qualified to perform the required services. (This report will include sufficient details as to the extent of the evaluation and review made and the considerations upon which the selections were based.) This report will be forwarded to the contracting officer and will serve as authorization to commence negotiation.

board. When, in the judgment of the (b) Selection by the chairman of the chairman of the board, it is considered that board action is not required in connection with a particular selection of architect-engineer firms, the following procedures will be followed:

(1) The chairman of the board will perform the functions required by § 184.203-2(a) (2).

(2) The chairman of the board will prepare a report in the same manner as that prescribed by § 18–4.203-2(a) (3), except that the report will be submitted to the director of the field installation or his designee for concurrence.

(3) The Director of the field installation or his designee will review the report from the chairman of the board, and concur with the selection made by the chairman, or return the report to the chairman for such action as may be considered necessary.

(4) Upon receipt of a concurred report, the chairman of the board will furnish the contracting officer with a copy of the report. Such report will serve as authorization to commence negotiation. § 18-4.203-5 Selection of architectengineers for master planning.

(a) Definition of master plan. A master plan is an integrated series of narrative, and tabular form the present documents which present in graphic, composition of the installation and the plan for its orderly and comprehensive development to perform its various missions in the most efficient and economical manner.

(b) Selection. Where it is proposed to select an architect-engineer to develop a master plan in connection with the establishment of a new NASA activity