Subpart 20-Limitation of Cost or Funds

1.2000 Scope of Subpart. This Subpart sets forth information for, and the responsibilities of, the contracting officer with respect to the funding of costreimbursement type contracts. It includes material

pertaining to:

(i) availability of funds;

(ii) issuance of a change order, a direction to correct or replace defective items or work, or a termination notice; and

(iii) action to be taken when the limit of the funds allocated or the estimated cost is being approached. 1.2001 Limitation of Cost or Funds

(a) When using a cost-reimbursement type contract, the contracting officer will assure that sufficient funds are available at all times to cover the estimated cost and fee (if any) if the contract is fully funded, or the amount allotted and the corresponding increment of fee (if any) if the contract is incrementally funded.

(q)

Under a cost-reimbursement

type contract,

the

the

contracting officer may, without immediately increasing funds available for the contract, issue a change order, a direction to correct or replace defective items or work, ΟΙ a termination notice.

Note: The contractor is obligated tc comply with such crder, direction or notice as long as funds are available within the estimated cost or amount allotted to the contract. However, the contractor is not obligated to Froceed further once the estimated cost or amount allotted is reached. Therefore, the contracting officer is cautioned

to have funds available to assure compliance with the directed action.

If it is necessary to increase the estimated cost or amount allotted to a contract to cover termination expenses, the contracting officer may direct that such increase is solely for the purpose of funding termination expenses.

(c) The contracting officer shall take prompt and formal action as soon as he is notified or beccres avare that a contractor is approaching the limits of the funds allotted to a contract or is approaching the estimated cost of the contract (see 7.203-3, 7.204-53, 7.304-51, 7.402-2, 7.403-53 and 7.451-2). He shall immediately obtain from the proper activity funding and

NASA PROCUREMENT REGULATION

GENERAL PROVISIONS

programming information pertinent to the continuation of the contract. The contracting officer shall, in addition, Įгcmptly notify the contractor in writing that:

(i) additional funds have been allocated, or the estimated cost increased, in a specified amount;

(ii) the contract is not to be further funded, and instruct the contractor to submit a proposal for an adjustment of fee, if any, based on percentage of completion cf work performed in relation to the total work required under the contract.

(iii) the contract is to be terminated; or

(iv) the Government is considering whether additional funds will be allocated or the estimted cost increased, and that the contractor is entitled by the terms of his contract to stop work when the cost or funding limit has been reached unless and until further funds are allocated the estimated cost increased, and that any work beyond the cost cr funding limit is at his own risk.

or

All government personnel should note that encouraging a contractor to continue work in the absence of funds may result in a violation of Revised Statutes Section 3679 (31 C.S.C.Sec. 665), and may subject the viclator to criminal Fenalties.

CFR TITLE 41 CHAPTER 18

Subpart 23-Environmental Protection

1.2300 Scope of Subpart. This Subpart sets forth policies and procedures for carrying out the requirements of the Clean Air Act, as amended (42 U.S.C. 1857 et seq., as amended by Public Law 91-604, December 31, 1970), the Federal Water Pollution Control Act (33 U.S.C. 1251 et seq., as amended by Public Law 92-500, October 18, 1972), Executive Order 11738, September 10, 1973, and the related regulations of the Environmental Protection Agency (EPA)(40 CFR Part 15).

1.2301 Policy.

(a) Executive Order 11738 provides in Section 1 that "It is the policy of the Federal Government to improve and enhance environmental quality. In furtherance of that policy, the program prescribed in this Order is instituted to assure that each Federal agency empowered to enter into contracts for the procurement of goods, materials, or services and each Federal agency empowered to extend Federal assistance by way of grant, loan, or contract shall undertake such procurement and assistance activities in a manner that will result in effective enforcement of the Clean Air Act (hereinafter referred to as the 'Air Act') and the Federal Water Pollution Control Act (hereinafter referred to as the 'Water Act')."

(b) Except as provided in 1.2302-4, purchasing offices shall not enter into, renew, or extend any contract for the procurement of goods, materials, or services with a firm proposing to use in the performance thereof a facility which is listed in the EPA List of Violating Facilities, pursuant to 40 CFR Part 15.20 as a violating facility under either the Air Act or the Water Act.

1.2302 Administration and Enforcement.

1.2302-1 Solicitation Provision. The provision set forth below shall be included in each solicitation except those involving small purchases (Part 3, Subpart 6).

CLEAN AIR AND WATER CERTIFICATION (OCTOBER 1976)

(Applicable if the bid or offer exceeds $100,000, or the Contracting Officer has determined that orders under an indefinite quantity contract in any year will exceed $100,000, or a facility to be used has been the subject of a conviction under the Clean Air Act (42 US.C. 1857c-8(c)(1)) or the Federal Water Pollution Control Act (33 U.S.C. 1319(c)) and is listed by EPA, or is not otherwise exempt.)

The bidder or offeror certifies as follows:

(a) any facility to be utilized in the performance of this proposed contract (has ......) (has not.....,) been listed on the Environmental Protection Agency List of Violating Facilities.

(b) he will promptly notify the Contracting Officer, prior to award, of the receipt of any communication from the Director, Office of Federal Activities, Environmental Protection Agency, indicating that any facility which he proposes to use for the performance of the contract is under consideration to be listed on the EPA List of Violating Facilities.

(c) he will include substantially this certification, including this paragraph (c), in every nonexempt subcontract.

1.2302-2 Contract Clause. The following clause shall be included in all contracts except those involving small purchases (Part 3, Subpart 6):

CLEAN AIR AND WATER (OCTOBER 1976)

(Applicable only if the contract exceeds $100,000, or the Contracting Officer has determined that orders under an indefinite quantity contract in any one year will exceed

NASA PROCUREMENT REGULATION

1.2302-2