SPECIAL INSTRUCTIONS PERTAINING TO

SCHEDULE III ITEMS

1. These instructions are to establish a standard for listing all proposed items of machinery and equipment. In order to properly evaluate such a listing, it is absolutely necessary for items to be described so that they can be easily identified. Also, itemize and give sufficient description to justify cost. However, like items may be combined as a single entry, so long as purpose and justification remain the same.

2. A satisfactory description should include the following data:

a. Manufacturer's name.

b. Manufacturer's model number.

c. Complete nomenclature and description of size and capacity, type (plain universal, knee or bed, vertical, horizontal, etc.) number of spindles, working heads or units, etc. (where applicable), including any special features.

d. Electrical characteristics (110 v., 220 v., 440 v., 3 phase, 60-cycle, a.c. or d.c., etc.).

e. Any other information necessary to completely identify items desired.

Estimated cost

Date

required

f. Possible substitutions in order of desirability.

g. Date of delivery for each item as required to meet delivery schedule of the contract in question.

h. Estimated delivery cost of each item.

i. Full Commodity Classification Code (i.e., PEC, FSC, or SCC, as applicable) as set forth in Appendix A to the NASA Industrial Property Control Manual (NPC 105).

j. Give specific nomenclature in all cases. For example: welders-indicate whether spot, arc, butt, flash, the manufacturer, throat size, electrical characteristics, frame size; furnaces-manufacturer, model, size and capacity, electrical specifications, whether gas, oil or electrically fired, etc. Size and capacity can be given, along with complete nomenclature, even though model may not be applicable, for all items of related production equipment.

3. Purpose and detailed justification.

4. Costs of installation, entered parenthetically and excluded from Schedule III Subtotals and Totals, should be entered as Schedule V, Machinery and Equipment Installation Costs.

Schedule V-Machinery and Equipment Installation Costs

Schedule III(a).

Schedule III (b)

Schedule III (c)

Schedule III (d)

Schedule III(e)

Schedule III (f)

Total Schedule V-----

NOTE: Individual item installation costs as set forth in Schedule III (a, b, c, d, e, and f) are to be excluded from Schedule III subtotals and totals. Such totals should be entered as Schedule V, Machinery and Equipment Installation Costs.

§ 18-13.5106 Format for presenting justification data.

(a) Contractor. Contractor (or subcontractor) name (legal name), and address, company representative to contact, telephone number and extension; type of company organization (corporation, partnership, etc.); state in which incorporated, if applicable.

(b) Location. Location of proposed facilities expansion; indicate whether site is privately-owned or Government-owned; if Government-owned, list the Government agency that has jurisdiction. Describe briefly the availability of labor, power, fuel, water, sewage disposal, housing, transportation, etc.

(c) Purpose of Expansion. Identify item or system to be developed, tested and/or produced.

(d) Basis of Need. Reference approved NASA program from which need for facilities directly arises. Also cite the relationship of this project to other elements of the approved program.

(e) Subcontracting. Percentage of subcontracting planned by dollar amount and/ or percent of total effort. Justify level of planned subcontracting. To the degree possible identify subcontractors and the items to be subcontracted. Justify reasons for not subcontracting additional work. If facilities are anticipated for subcontractors, so identify.

(f) Financial Progress. Provide a 5-year summary of the contractor's financial progress as follows (by company division, if appropriate):

Guidelines for use in arranging for quality assurance

shall be conducted in all cases prior to acceptance. Inspection shall be accomplished by or under the supervision of Government personnel. Except as otherwise provided in the contract, test requirements may be performed in the contractor's or subcontractor's laboratory or any other commercial laboratory acceptable to the Government. The contractor may be required under the terms of the contract to establish and maintain an acceptable inspection or quality control system to ensure compliance with contract specifications with a minimum of Government inspection supervision. A manufacturer's certificate or other statement of quality or quantity may be considered in determining whether suppies or services are in conformity with the contract; but no provision of the contract shall preclude the Government from performing inspection.

(b) The type and extent of inspection needed depend on the particular procurement. For example, on items which would involve small losses in the event of defects and which would probably be replaced by suppliers without contest, inspection may consist only of checks for identity, quantity, and shipping damage. Detailed requirements for space systems and elements thereof are contained in "Quality Assurance Provisions for Government Agencies," NPC 200-1A and Subpart 18-14.50.

[31 F.R. 672, Jan. 18, 1966]

plants.

contract items, procurement offices shall utilize the services of other executive agencies to ensure the most economical and effective inspection consistent with the best interests of the Government. The purpose of inspection interchange agreements is to eliminate duplication, overlapping, or multiple assignments of Government inspection activity in any one plant.

(b) Agreements have been entered into by NASA with the Departments of the Air Force (see NASA Management Instruction 1052.12), the Navy (see NASA Management Instruction 1052.15), the Army (see NASA Management Instruction 1052.18), and the DOD for the Philadelphia Contract Administration Services Region (see NASA Management Instruction 1052.38) relating to the performance of field service functions, including quality assurance, inspection, test, and acceptance, in support of NASA contracts. The procedures set forth in these agreements shall be observed by all NASA procurement offices in arranging for field services. Inspection agreements may also be used between NASA field installations in order to achieve maximum economy and efficiency.

[31 F.R. 673, Jan. 18, 1966]

§ 18-14.104 Contractor responsibility.

The inspection clauses included in NASA contracts require the contractor to maintain an inspection system acceptable to the Government and records of all inspection work performed by the contractor. See also § 18-1.5000. The contractor's inspection system should be such as to provide reasonable assurance that the supplies and work under the contract will conform to contract requirements and should include any quality control procedures necessary to this end. In any case, when Federal or Military specifications are used to establish requirements in the contract, the supplier shall be required to perform all examinations and tests called for by the specifications except those which the Government is expressly required to make.

[31 F.R. 673, Jan. 18, 1966]

§ 18-14.105 Places of inspection. § 18-14.105-1 General.

Each contract shall designate the place or places of inspection. Inspection of supplies and services shall be made at

such times and places (including any stage during the period of manufacture and including subcontractors' plants) as are necessary to determine that the supplies and services conform to contract requirements. When the contract provides for inspection at source, shipment prior to inspection may be authorized if it is determined to be in the best interest of the Government. In such cases, to the extent appropriate, the contract should be modified prior to shipment with respect to (a) risk of loss in transit and (b) shipping and other expenses incurred in the event of rejection at destination.

§ 18-14.105-2 Inspection at source.

Supplies and services shall be inspected at source when:

(a) Inspection at any other point would require uneconomical disassembly or destructive testing;

(b) Considerable loss would result from the manufacture and shipment of unacceptable supplies or from the delay in making necessary corrections;

(c) Special instruments, gauges, or facilities required for inspection are available only at source;

(d) Inspection at any other point would destroy or require the replacement of costly special packing and packaging; (e) Quality control and inspection are closely related to production methods;

(f) Supplies requiring technical inspection are destined for points of embarkation for overseas shipment; or

(g) Otherwise determined to be in the best interest of the Government.

§ 18-14.105-3 Inspection at destination. Supplies and services shall be inspected at destination when:

(a) Deliveries of supplies purchased "off the shelf" are made from a point other than that of manufacture;

(b) Necessary testing equipment is located only at destination;

(c) Biologicals being purchased are processed under direct control of the National Institutes of Health or the Federal Food and Drug Administration;

(d) The volume of procurement at a given plant is not sufficient to warrant the increased cost of inspection at origin; or

(e) Otherwise determined to be in the best interest of the Government.