GENERAL PROVISIONS

(i) such action is necessary to meet critical program schedules;

(ii) it has been established that program authority has been issued and that funds to cover the procurement will be available prior to the date set for contract award or contract modification; and

(iii) the Procurement Officer authorizes such action prior to the issuance of the invitation for bids or request for proposals.

(c) The procurement request shall be assigned within the procurement office to a negotiator who will be responsible to the contracting officer for conducting the business aspects of the transaction. The negotiator will review the request to ensure that it complies with NASA Management Instruction 5101.12, this Regulation, and that the information contained in the request is in sufficient detail to prepare the invitation for bids or the request for proposals. Uncertain requirements or inconsistencies in the procurement request will be discussed with the initiator of the request and clarified prior to the initiation of procurement action.

1.357 Procurement of Liquid Hydrogen.

(a) To ensure that adequate supplies of liquid hydrogen are readily available to meet current and future program requirements, NASA has established contractual arrangements with primary supply sources located at Michoud, Louisiana and Sacramento, California. These contracts will be used to the maximum extent practicable in supplying both in-house and contractor requirements for liquid hydrogen.

(b) Responsibility for administration of the sources and management of production and distribution operations have been vested in:

(i) the Marshall Space Flight Center for the Louisiana source and

(ii) the NASA Pasadena Office, for the California sources.

(c) Requests for furnishing liquid hydrogen will be submitted to either the Marshall Space Flight Center or to the NASA Pasadena Office. The supply source used will be the one located nearest the receiving destination.

1.358 Contractor Financing By Letter Of Credit. Any contract with a nonprofit institution (including an educational institution) which, in accordance with the policy established in FMM 9280–1, is to provide advance funding by the Letter of Credit procedure, shall contain the clause set forth below: CONTRACTOR FINANCING BY LETTER OF CREDIT (MARCH 1970)

(a) The advance funds will be provided in accordance with the letter of credit procedure set forth in paragraphs 9280-1 through 9280-8 of the NASA Financial Management Manual. The Contractor shall use these procedures to obtain advance funds for allowable costs under this contract.

(b) In accordance with those procedures, a Letter of Credit will be issued in an amount determined by the Contracting Officer based on the needs of the Contractor. Subsequent amendments to the Letter of Credit will be on the basis of: (i) quarterly NASA Form 1031 reports submitted by the Contractor and as approved by the Contracting Officer, and (ii) amendments to the contract. In no instance will the advance funds provided by the letter of credit procedure exceed the amount of the contract as from time to time amended, less the amount of withholding provided therein.

(c) The funds provided by the letter of credit procedure shall be used by the Contractor solely for the purposes of making payments for items of allowable costs as defined in this contract, or to reimburse the Contractor for such items of allowable cost and for making payments for such other costs as the Contracting Officer otherwise has authority to approve, and does approve in writing.

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GENERAL POLICIES

(d) The Contractor may draw on the Letter of Credit using payment vouchers as follows:

(1) Payment vouchers may be executed only for the purpose of obtaining funds in the minimum amounts necessary for the following purposes: (i) making payments for items of allowable costs as defined in this contract; (ii) reimbursing the Contractor for such items of allowable costs; and (iii) for making payments for such other costs as the Contracting Officer otherwise has authority to approve, and does approve in writing; and the funds so obtained may be used only for such purposes.

(2) Payment vouchers drawn should be timed to be in accordance with the actual cash requirements of the contractor in carrying out the purpose of the contract. (e) NASA Form 1031 shall be submitted by the 20th of the month following the quarter being reported.

(f) The Contractor may at any time repay all or any part of the funds or credit obtained under the Letter of Credit. When so requested in writing by the Contracting Officer, the Contractor shall repay to the Government such part of the unliquidated balance of advance payments as shall, in the opinion of the Contracting Officer, be in excess of the Contractor's current needs or in excess of the contract price or estimated cost as revised from time to time.

(g) If upon completion or termination of this contract all amounts obtained by the Contractor under the Letter of Credit have not been fully liquidated by authorized charges under the contract, the balance thereof shall be deducted from any sums otherwise due or which may be due to the Contractor from the Government, and any excess funds shall be repaid by the Contractor to the Government upon demand.

(h) Notwithstanding any other provisions of this contract, the Contractor shall not transfer, pledge, or otherwise assign this contract or any interest therein, or any claim arising thereunder, to any party or parties, bank, trust company, or other financing institution.

(i) Any and all advance payments made under this contract shall be secured by a lien in favor of the Government, paramount to all other liens, upon the supplies or other things covered by this contract and on all material and other property acquired for or allocated to the performance of this contract, except to the extent that the Government by virtue of any other provision of this contract, or otherwise, shall have valid title to such supplies, materials, or other property as against other creditors of the Contractor. The Contractor shall identify by marking or segregation all property which is subject to a lien in favor of the Government by virtue of any provision of this contract in such a way as to indicate that it is subject to such lien and that it has been acquired for or allocated to the performance of this contract. If for any reason such supplies, materials, or other property are not identified by marking or segregation, the Government shall be deemed to have a lien to the extent of the Government's interest under this contract on any mass of property with which such supplies, materials, or other property are commingled. The Contractor shall maintain adequate accounting control over such property on his books and records. If at any time during the progress of the work on the contract it becomes necessary to deliver any item or items and materials upon which the Government has a lien as aforesaid to a third person, the Contractor shall notify such third person of the lien herein provided and shall obtain from such third person a receipt, in duplicate, acknowledging, inter alia, the existence of such lien. A copy of each receipt shall be delivered by the Contractor to the Contracting Officer. If this contract is terminated in whole or in part and the Contractor is authorized to sell or retain termination inventory acquired for or allocated to this contract, such sale or retention shall be made only if approved by the Contracting Officer, which approval shall constitute a release of the Government's lien hereunder to the extent that such termination inventory is sold or retained, and to the extent that the proceeds of the sale, or the credit allowed for such retention on the Contractor's termination claim, is applied in reduction of advance payments then outstanding hereunder.

GENERAL PROVISIONS

1.359 Aircraft Noise Research and Development Programs. NASA and the Department of Transportation have executed an agreement (NMI 1052.103A) to coordinate their research and development efforts in aircraft noise reduction, control, prediction techniques and other aircraft noise related problems. Proposed procurement and grant actions relating to this program will be coordinated with the Deputy Associate Administrator (Aeronautics), NASA Headquarters in accordance with the provisions of NASA Management Instruction 1052.103A.

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GENERAL POLICIES

Subpart 4-Appointment and Authority of Contracting Officers

1.400 Scope of Subpart. This Subpart deals with the appointment and procurement authority of contracting officers. It also imposes limitations upon the authority of contracting officers to enter into contracts. For the purpose of this Subpart, the term "contracting officer" does not include representatives of the contracting officer.

1.401 Authority of Contracting Officers. Contracting officers are authorized to enter into or modify contracts for supplies or services, including construction, on behalf of the Government and in the name of the United States of America, by formal advertising, negotiation, or by other authorized method of procurement, and to administer such contracts, in accordance with applicable laws and this Regulation. The foregoing authorization is subject to the requirements prescribed in 1.402 and any further limitations, consistent with this Regulation imposed by the appointing authority.

1.402 Requirements to be Met Before Entering Into Contracts.

(a) General. Whether the procurement is to be effected by formal advertising or by negotiation, a contract or modification may be entered into by a contracting officer only if:

(i) all applicable requirements of law, NASA regulations, and instructions of the installation have been met;

(ii) required approvals have been obtained from the technical and management authorities at the installation concerned; this includes, prior to the incurrence of an obligation, obtaining approval as to the availability of funds;

(iii) the contract is written on a standard or an approved form of contract; and

(iv) approval of deviations from standard or authorized contract clauses has been obtained from the Director of Procurement (see 1.109). (b) Special Requirements for Negotiated Contracts. In addition to the requirements in (a) above, no negotiated contract shall be entered into until the determinations and findings required by Part 3, Subparts 2 and 3, with respect to the circumstances justifying negotiation and with respect to any use of a special method of contracting have been made.

1.403 Selection, Appointment and Termination of Appointment of Contracting Officers. The selection, appointment and termination of the appointment of contracting officers shall be made only by the Administrator or his designees, and by subsequent designees to whom such authority has been redelegated.

(a) Considerations. In selecting contracting officers, the appointing authority shall consider experience, training, education, business acumen, judgement, character, reputation and ethics.

(b) Evaluation of Experience, Training, and Education. In considering experience, training, and education, the following shall be evaluated:

(i) experience in a Government procurement office, commercial procurement, or related fields;

NASA PROCUREMENT REGULATION

¶ 1.403-1

GENERAL PROVISIONS

(ii) formal education or special training in business administration, law, accounting, or related fields;

(iii) completion of specialized courses in the field of Government procurement;

(iv) knowledge of the provisions of this Regulation and of other applicable regulations; and

(v) where the appointment of contracting officers for construction contracts is involved, experience in the construction field, including the administration of construction contracts.

1.403-2 Appointment.

(a) Except for those individuals who are authorized to enter into contracts by virtue of their position, appointment of contracting officers shall be made on NASA Form 1350, Certificate of Appointment, issued by the appointing official. Any limitations on the scope of the authority to be exercised by the contracting officer, other than those contained in this Regulation, shall be entered on the face of the certificate. Certificates may be serially numbered. (b) The office of each appointing authority shall maintain a file of all documents (such as résumés, references, and records of training) considered in the selection of each contracting officer.

1.403-3 Termination of Appointment.

(a) Automatic Termination. Unless the Certificate of Appointment of a contracting officer contains other provision for automatic termination, the appointment shall remain in effect, unless sooner revoked, until the contracting officer is reassigned or his employment is terminated.

(b) Revocation. The appointment of a contracting officer may be revoked at any time by the appointing authority, or higher appointing authority, or any successor to either, but no such revocation shall operate retroactively. Revocation of the appointment shall be made by letter, reading substantially as follows:

TO: (Name, grade and position title)
FROM: (Appointing Authority)

Date

SUBJECT: Termination of Appointment as Contracting Officer, Certificate of

Appointment, Serial No.

Your appointment as Contracting Officer contained in the subject Certificate is
hereby terminated effective

19_.

(Signature and Title)

1.403-4 Modification of Authority. To accomplish modification of a contracting officer's authority, his present appointment shall be revoked, and a new certificate issued.

1.403-5 Assignment of Duties to Contracting Officers. In assignment of duties, including execution and administration of contracts, consideration shall be given to the ability, training and experience of the contracting officer. Duties, involving contracts of large dollar value and complexity, shall be given only to personnel with commensurate experience, training, and ability.