those described by E.512-1 will not be established initially or by amendment except on the basis of satisfactory cost data and estimates furnished by the contractor. Except as done incident to modification of a profit rate on contracts subject to price redetermination or to incentive price revision, above, contracts may be amended to reduce the progress payment liquidation rate not more frequently than once in each period of 12 months. When a progress payment liquidation rate is changed by contract amendment, appropriate conforming changes will be made in (a) (ii) and (a) (4) of the progress payment clause of the contract, so that the new percentage specified in paragraph (b) of the progress payment clause will also be specified in paragraphs (a) (3) (ii) and (a) (4) of that clause.

(d) To support amendments reducing liquidation rates, there must be submission of satisfactory information by the contractor showing separately (i) the cost of any items that have been delivered, accepted and invoiced, (ii) the cost of work not delivered, accepted and invoiced, (iii) the estimated costs of completion, and (iv) for items that have not been delivered, accepted and invoiced, an applicable profit that is higher than the amount of profit permitted to be released by application of the progress payment liquidation percentage then specified in the contract. These amendments reducing liquidation rates will be for application only to billings for items thereafter to be delivered, and will not adjust for past delivery billings and associated progress payment liquidations.

E.512-3 Liquidation percentages. (a) For the purposes of E.512-2, the minimum liquidation rate has to be enough to recover the full amount of progress payments by way of deductions from delivery billings. The amount of expected progress payments is the product of multiplication of the total estimated contract costs by the progress payment percentage of those costs. This amount of expected progress payments, divided by the contract price, gives the minimum liquidation percentage. For contracts subject to incentive price revision, see E.512-2(b).

Appendices F-H-[Reserved]

Appendix I-Preparation, Reproduction, and Distribution of Material Inspection and Receiving Report (MIRR) (DD Forms 250 and 250c)

SOURCE: The provisions of Appendix I appear at 36 F.R. 15648, Aug. 17, 1971. as amended at 36 FR 21513, Nov. 10, 1971; 37 FR 14981, July 26, 1972.

series) and suppliers commercial shipping/ packing lists used to evidence Government Procurement Quality Assurance (PQA).

(b) MIRR's are used to document Procurement Quality Assurance, acceptance of supplies and services, and shipments; they are used by receiving, status control, technical, contracting, inventory control, requisitioning, and paying activities. MIRR's are not required to be used for:

(1) Shipments by subcontractors where direct shipment is not made to the Government;

(ii) Shipment of contract inventory (see § 18-8.101-5); or

(111) Movement of Government property unless for original acquisition.

(c) To preclude delays in shipments, payments, and avoid multiple corrections, contractors are encouraged to consult with the cognizant Government representative regarding implementation of this appendix. 1.102 Applicability.

(a) The provisions of this appendix are applicable to all deliveries of supplies or services procured by or for the National Aeronautics and Space Administration. Exceptions are as follows:

(1) Procurements effected under Subpart 18-3.6;

(11) Negotiated subsistence procurements; (111) Subcontracts where direct shipment is not made to the Government; and

(iv) Contracts for which the end item is a technical or scientific report.

(b) When the National Aeronautics and Space Administration provides PQA and/or acceptance services for non-NASA activities, the MIRR shall be prepared in accordance with the instructions of this appendix unless otherwise specified in the contract.

I.103 Use.

(a) The DD Form 250 is a multipurpose report used for:

(1) PQA-To provide evidence of PQA at origin or destination;

(ii) Acceptance-To provide evidence of acceptance at origin or destination; (iii) Packing List;

(iv) Receiving;

(v) Shipping;

(vi) Contractor Invoice;

(vii) Contractor Invoice Support; and
(viii) Contractor Internal Use.
1.104 Application.

(a) The DD Form 250 shall be used for delivery of contract line, subline, exhibit line, or exhibit subline items.

(b) If the "Shipped To," "Marked For," "Shipped From," "PQA" and "Acceptance" data are the same for more than one shipment made on the same day under the same contract, one MIRR shall be prepared to cover all such shipments, except that, if the volume of the shipments precludes the use of a single car, truck, or other vehicle, either a copy of the single MIRR or a separate MIRR shall be provided for each vehicle.

(c) The DD Form 250 may, but is not required for use under: Imprest fund pur

(a) Contractors may obtain from the procurement office upon request and at no cost, MIRR forms required for use in connection with Government contracts.

(b) Contractors may print forms provided that the format and dimensions (DD Forms 250 and 250c-81⁄2 x 11'') are identical to the MIRR forms printed by the Government and that the forms are cast to provide for 78 characters per printed image horizontally and 62 lines vertically border to border for the DD Form 250, and 61 lines vertically border to border for the DD Form 250c.

SUBPART 2-PQA ON SHIPMENTS BETWEEN
CONTRACTORS

1.201 Instructions. The supplies' commercial shipping document/packing list shall be used to indicate performance of required PQA actions at subcontract level. The following entries shall be made on the supplier's commercial shipping document/packing list. Required PQA of listed items has been performed.

(ii) For the Government representative at consignee (via mail); and

(iii) For the Government representative at consignor.

SUBPART 3-PREPARATION OF THE DD FORM 250 AND DD FORM 250c

1.301 Preparation instructions. DD Form 250 (MIRR) and DD Form 250c (Continuation Sheet) shall be prepared as follows:

(a) General. (i) The date, where required, shall utilize seven spaces consisting of the last two digits of the year, three-alphabeticmonth abbreviation, and two digits for the day. For example, 67AUG07, 67SEP24;

(ii) The address, where required, shall consist of the name, street address/Post Office Box, city, State, and ZIP code;

(iii) When the DD Form 250c is used, the data entered in the blocks at the top of the form shall be identical to the comparable entries as shown in Blocks 1, 2, 3, and 6 of the DD Form 250;

(iv) Overflow data of the DD Form 250 shall be entered in Block 16 or in the body of the DD Form 250c with appropriate block cross reference. Additional DD Form 250c sheets, solely for continuation of Block 23

data, shall not be numbered or distributed as part of the MIRR.

(b) Classified information. Classified information shall not be included in or appear on the MIRR, nor shall the MIRR be classified.

Block 1.-Contract number. (a) Enter the contract number as contained in the contractual document, including the applicable call/order number if any.

(b) Enter the name of the procurement office immediately below the contract number. This requirement may be satisfied by inclusion of the approved prefix used in the contract number to identify the procurement office.

Block 2.-Shipment number. (a) The shipment number is composed of a three alpha character prefix and a four-numeric or alphanumeric serial number.

(1) The shipment number prefix shall be controlled and assigned by the prime contractor and shall consist of three alphabetic characters for each "Shipped From" address (Block 11).

(2) The first shipment under a prime contract from each "Shipped From" address shall be numbered 0001; all subsequent shipments under that prime contract shall be consecutively numbered.

a. Alpha-numeric serial numbers shall be used when more than 9,999 numbers are required. Alpha-numeric numbers shall be serially assigned with the alpha in the first position followed by the three position numeric serial number. The following alphanumeric sequence shall be used (the letters I and O shall not be used):

A001 through A999 (10,001 through 10,999) B001 through B999 (11,001 through 11,999) through

Z001 through Z999 (34,001 through 34,999) b. When this series is completely used, numbering shall revert to 0001.

(b) The shipment number of the initial shipment shall be reassigned where a "Replacement Shipment" is involved (Block 16(b) (4)).

(c) The prime contractor shall control deliveries and on the last shipment of the contract shall suffix the shipment number with a "Z" in addition to that required for line items (see Block 17). Where the contract final shipment is from other than the prime contractor's plant, the prime contractor may elect either to direct the subcontractor to suffix the "Z," or, on receipt of the subcontractor final shipment information, to correct the DD Form 250 (see 1.305) covering the last shipment from the prime contractor's plant by addition of a "Z" to that shipment number.

Block 3.-Date shipped. Enter the date the shipment is released to the carrier or the date of completion of services. If the shipment will be released after the date of PQA and/or Acceptance, enter the estimated date of release. When the date is estimated, enter an "E" after the date. Distribution of the

MIRR shall not be delayed for entry of the actual shipping date. Reissuance of the MIRR is not required to show the actual shipping date.

Block 4.-B/L TCN. When applicable enter: (a) The commercial or Government bill of lading number after "B/L”; and

(b) The Transportation Control Number after "TCN."

Block 5.-Discount terms. The discount, in terms of percentages and corresponding days allowed, shall be entered as described below:

(a) The contractor may, at his option, enter the discount terms on all copies of the MIRR.

(b) When the MIRR is used as an invoice, see 1.306.

Block 6.-Invoice No./date. Enter the invoice number and date as described below:

(a) The contractor may, at his option, enter the invoice number and date on all copies of the MIRR.

(b) When the MIRR is used as an invoice, see 1.306.

Block 7.-Page/of. Consecutively number the pages comprising the MIRR. On each page enter the total number of pages of the MIRR.

Block 8.-Acceptance point. Enter an "S" for Origin or "D" for Destination as specified in the contract as the point of acceptance. Enter an alphabetic "O" for Other if the point of acceptance is not specified in the contract. Block address.

9.-Prime contractor. Enter the

Block 10.-Administered by. Enter the address of the procurement office cited in the contract.

Block 11.-Shipped from/code/FOB.

(a) Enter the code and address of the "Shipped From" location. If identical to Block 9, enter "See Block 9."

(b) For performance of services line items which do not require delivery of items upon completion of services, enter the code and address of the location at which the services were performed. If the DD Form 250 covers performance at multiple locations, or if identical to Block 9, enter "See Block 9."

(c) Enter on the same line and to the right of "FOB" an "S" for origin or "D" for destination as specified in the contract. Enter an alphabetic "O" if the "FOB" point cited in the contract is other than origin or

destination.

Block 12-Payment will be made by. Enter the address of the payment office cited in the contract.

Block 13.-Shipped to. Enter the address of the consignee as contained in the contract or shipping instructions.

Block 14.-Marked for. Enter the "Mark For" address and/or other designation as contained in the contract or shipping instructions.

Block 15.-Item No. Enter the contrast line item, subline line, exhibit line or exhibit subline identification as set forth in the contract. If four or less digits are used, they

will be positioned to the left of the vertical dashed line. Where a six-digit identification is used, enter the last two digits to the right of the vertical dashed line.

Block 16.-Stock/part No./description. (a) Enter, as applicable, for each line item, using single spacing between each line item:

(1) The Federal Stock Number (FSN) or noncatalog number and, if applicable, prefix or suffix; when a number is not provided or it is necessary to supplement the number, include other identification, e.g., manufacturer's name or Federal Supply Code, as published in Cataloging Handbook H4-1, and part number; additional part numbers may be shown in parentheses; the descriptive noun of the item nomenclature and, if provided, the Government assigned management/material control code.

The following technique may be used in the case of equal kind supply items: The first entry shall be the description without regard to kind. For example: "Resistor," "Vacuum Tube," etc. Below this description, enter the contract line item number in Block 15 and stock/part number followed by the size or type in Block 16.

(2) On the next printing line if required by the contract for control purposes enter: The make, model, serial number, lot, batch, hazard indicator, and/or similar description.

(3) On the next printing line; the FED STRIP requisition number(s) when provided in the contract or shipping instructions.

(b) In addition to entries required above, enter on the next line the following as appropriate. Where applicable to all line item numbers identified in the MIRR, enter such data only once after the last line item entry. Entries may be extended through Block 20.

(1) Enter in capital letters any special handling instructions/limits for material environmental control, e.g., temperature, humidity, aging, freezing, shock, etc.

(2) When an FSN is required by but not cited in a contract and has not been furnished by the Government, shipment may be made without such FSN at the direction of the contracting officer. Enter the authority for such shipment.

(3) When Government furnished property (GFP) is included with or incorporated into the line item, enter the letters "GFP".

(4) When shipment consists of replacements for supplies previously furnished, enter in capital letters "REPLACEMENT SHIPMENT." (See 1.301, Block 17 for replacement indicators.)

(5) For items shipped with missing components, enter and complete the following: "Item(s) shipped short of the following component(s): FSN or comparable Identification Quantity

Esti

"

(8) Enter shipping container number(s), the type, and the total number of the shipping container(s) included in the shipment.

(9) The MIRR shall be used to record and report the waivers and deviations from contract specifications, including the source and authority for the waiver or deviation. For example, the procuring installation authorizing the waiver or deviation and the identification of the authorizing document.

(10) For shipments involving discount terms, enter "Discount Expedite" in at least 1-inch outline type style letters.

(11) When test/evaluation results are a condition of acceptance and are not available prior to shipment, the following note shall be entered if the shipment is approved by the contracting officer: "NOTE: Acceptance and payment are contingent upon receipt of approved test/evaluation results." The contracting officer shall advise (a) the consignee of the results (approval/disapproval) and (b) the contractor to withhold invoicing pending attachment to his invoice of the approved test/evaluation results.

(12) The copy of the DD Form 250 required to support payment for destination acceptance (top copy of the four with shipment) or ARP origin acceptance (additional copy furnished to the QAR) shall be identified as follows: Enter "Payment Copy" in approximately 21⁄2-inch outline type style letters with "Forward to Block 12 Address" in approximately 4-inch letters immediately below. Do not obliterate any other entries.

(13) A double line shall be drawn completely across the form following the last entry.

Block 17-Quantity shipped/received. (a) Enter the quantity shipped, using the unit of measure indicated in the contract for payment. When a second unit of measure is used for purposes other than payment, enter the appropriate quantity directly below in parentheses.

(b) Enter a "Z" below the first digit of the quantity when:

(1) the total quantity of the line item is delivered, including variations within contract terms.

(2) all shortages on items previously shipped short are delivered.

(c) If a replacement shipment is involved, enter below the first digit of the quantity, the letter "A" to designate first replacement, "B" for second replacement, etc. The final shipment indicator "Z" shall not be used when a final line item shipment is replaced.

Block 18.-Unit. Enter the abbreviation of the unit of measure as indicated in the contract for payment. Where a second unit of measure is indicated in the contract for purposes other than payment or used for ship

ping purposes, enter the second unit of measure directly below in parenthesis. Authorized abbreviations are listed in MILSTD-129 (Marketing and Storage). For example: LB for pound; SH for sheet.

Block 19.-Unit price. The contractor may, at his option, enter unit prices on all MIRR copies when the MIRR is used as an invoice. Block 20.-Amount. Enter the extended amount when the unit price is entered in Block 19.

Block 21.-Procurement quality assurance. The words "conform to contract" contained in the printed statements in Blocks A and B relate to contract obligations pertaining to quality, and to the quantity of the items on the report. The statements shall not be modified. Notes taking exception shall be entered in Block 16 or on attached supporting documents with appropriate block cross reference.

"A. Origin”—(1) The authorized Government representative shall:

a. Place an "X" when applicable in the appropriate PQA and/or Acceptance box(es) to evidence origin Procurement Quality Assurance and/or Acceptance. When the contract requires PQA at destination in addition to origin PQA, an asterisk will be entered at the end of the statement and an explanatory note entered in Block 16;

b. Enter the date of signature;

c. Sign; and

d. Enter the typed, stamped, or printed name of the signer and office code.

"B. Destination"-(1) When acceptance at origin is indicated in Block 21A, no entries shall be made in Block 21B.

(2) When PQA and Acceptance or Acceptance is at destination, the authorized Government representative shall: (a) Place an box(es);

"X" in the appropriate

(b) Enter the date of signature;
(c) Sign; and

(d) Enter typed, stamped, or printed name and title.

Block 22.-Receiver's use. This block shall be used by the receiving activity (Government or contractor) to denote receipt, quantity and condition. The receiving activity shall enter in this block the date the supplies arrived. For example, when off-loading or inchecking occurs subsequent to the day of arrival of the carrier at the installation, the date of the carrier's arrival is the date received for purposes of this block.

Block 23.-Contractor use only. This block is provided and reserved for Contractor use. 1.302 [Reserved]

1.303 Consolidated Shipments. When individual shipments are held at the contractor's plant for authorized transportation consolidation to a single destination on a single bill of lading, the applicable DD Forms 250 may be prepared at the time of Procurement Quality Assurance or Acceptance prior to the time of actual shipment. (See Block 3.) 1.304 [Reserved]

1.305 Correction Instructions. When, because of errors or omissions, it is necessary

to correct the MIRR after distribution has been made, a revised MIRR shall be effected by correcting the original master and distributing the corrected form. The corrections shall be made as follows:

(1) Circle the error and place the corrected information in the same block; if space is limited, enter the corrected information in Block 16 referencing the error page and block.

(ii) The words "Corrections Have Been Verified" shall be entered on page 1. The authorized Government representative shall place the date and sign immediately below the statement.

(iii) MIRRs shall not be corrected for Blocks 19 and 20 entries.

(iv) Pages of the MIRR requiring correction shall be clearly marked "Corrected Copy", avoiding obliteration of any other entries. Where corrections are made only on continuation sheets, page number 1 shall also be marked "Corrected Copy."

(v) Page 1 and only those continuation pages marked "Corrected Copy" shall be distributed to the initial distribution. A complete MIRR with corrections shall be distributed to new addressee(s) created by error corrections.

1.306 Invoice Instructions. Contractors are encouraged to use copies of the MIRR as an invoice, in lieu of a commercial form, but are not required to do so. When used as an invoice, four copies shall be prepared and forwarded to the payment office as follows:

(1) Complete Blocks 5, 6, 19, and 20.

(ii) Mark in letters approximately 1 inch high, first copy: "Original Invoice"; three copies: "Invoice Copy".

(iii) Forward the four copies to the payment office (Block 12 address).

1.307 Packing List Instructions. Copies of the MIRR may be used as a packing list. When they are used, the packing list copies shall be in addition to the copies of the MIRR required for distribution (1.401) and shall be marked "Packing List".

1.308 Receiving Instructions. When the MIRR is used for receiving purposes, procedures shall be as prescribed by local directives. If PQA and Acceptance or Acceptance of supplies is required upon arrival at destination, see Block 21B for instructions. SUBPART 4-DISTRIBUTION OF DD FORM 250 AND DD FORM 250C

Appendix K-Preaward Survey
Procedures

SOURCE: The provisions of Appendix K appear at 36 F.R. 21515, Nov. 10, 1971.

SUBPART 1-INTRODUCTION

K.100 Scope of Appendix. This appendix establishes procedures for requesting and accomplishing preaward surveys. It includes preaward surveys conducted by NASA, those conducted by another agency for NASA, and those jointly conducted.

K.101 Applicability of Appendix. This appendix is applicable to all activities of the National Aeronautics and Space Administration concerned with preaward surveys.

K.102 Definitions. As used in this appendix, the following terms have the meanings set forth below.

K.102-1 Monitor means the person designated to administer the preaward survey from the receipt of the request through the issuance of the final report.

K.102-2 Team Coordinator means the person designated by the monitor to coordinate the onsite survey, make arrangements for plant visits, and conduct team conferences as necessary before, during, or after the plant visit.

K.102-3 Preaward Survey Review Board means a board established to review and approve or disapprove preaward survey reports.

Subpart 2-GENERAL PROVISIONS

K.200 Scope of Subpart. This subpart sets forth the procedure for requesting and conducting a preaward survey, and applicable administrative controls.

K.201 Procedure for Requesting Preaward Survey.

(a) A preaward survey shall be requested on "Preaward Survey of Prospective Contractor" (DD Form 1524) indicating in section III thereof, the scope of the survey desired. Factors requiring emphasis not. enumerated in section III should be listed under item "14" of that section. A survey may be requested by telegraphic communication containing the data required by sections I, II, and III of the Form. A survey may be requested by telephone but shall be immediately confirmed on DD Form 1524. Unless previously furnished, a copy of the solicitation, and such drawings and specifications as deemed necessary by the procurement office, shall be supplied with the preaward survey request.

(b) Any information indicating previous unsatisfactory contract performance shall be furnished the survey activity with the preaward survey request, except where it is known that the survey activity already has this information.

(c) The request for preaward survey shall be forwarded in an original and three copies to the responsible survey activity. If the survey activity is a DOD agency, the request is to be sent to the appropriate office shown in the DOD Directory of Contract Ad