PART 1843
CONTRACT
MODIFICATIONS
SUBPART 1843.2 CHANGE ORDERS
1843.205 Contract
clauses.
1843.205-70 NASA contract
clauses.
SUBPART 1843.70 UNDEFINITIZED CONTRACT ACTIONS
1843.7001 Definitions.
1843.7002 Policy.
1843.7003 Procedures.
1843.7004 Exceptions.
1843.7005 Definitization.
SUBPART 1843.71 SHARED SAVINGS
1843.7101 Shared Savings Program.
1843.7102
Solicitation provision
and contract clause.
PART 1843
CONTRACT MODIFICATIONS
1843.205 Contract clauses.
As authorized in the prefaces of clauses FAR 52.243-1,
Changes- Fixed Price; FAR
52.243-2, Changes--Cost Reimbursement; and FAR
52.243-4, Changes, and in the prescription at 43.205(c) for FAR 52.243-3,
Changes--Time-and-Material or Labor-Hours, the period within which a contractor
must assert its right to an equitable adjustment may be varied not to exceed 60
calendar days.
1843.205-70 NASA contract clauses.
(a) (1) The contracting
officer may insert in contracts a clause substantially the same as 1852.243-70,
Engineering Change Proposals, when ECPs are expected. Paragraphs (c) and (d) of
the basic clause and Alternate I of the clause shall be changed to reflect the
specific type of contract.
(2) If it is
desirable to preclude a large number of small-dollar, contractor-initiated
engineering changes and to reduce the administrative cost of reviewing them,
the contracting officer shall use the clause with its
(3) If the
contract is a cost-reimbursement type, the contracting officer shall use the
clause with its Alternate II.
(b) The contracting officer may insert a clause
substantially as stated at 1852.243-72,
Equitable Adjustments, in solicitations and contracts for -
(1)
Dismantling, demolishing, or removing improvements; or
(2)
Construction, when the contract amount is expected to exceed the simplified
acquisition threshold and a fixed-price contract is contemplated.
1843.7001 Definitions.
"Undefinitized contract action (UCA)"
means a unilateral or bilateral contract modification or delivery/task order in
which the final price or estimated cost and fee have not been negotiated and
mutually agreed to by NASA and the contractor. (Issuance of letter contracts
and their modifications are governed by Subpart
1816.6.)
(a) Undefinitized contract actions may be issued only on an exception basis, and centers must ensure that NASA liabilities and commitments are minimized. When an undefinitized contract action is justified and program requirements can be severed into smaller, discreet efforts, the work authorized by the undefinitized contract action must be limited to the minimum severable effort required to satisfy the urgent program requirements. The remaining requirements may not be initially included in the undefinitized contract action and must be acquired through a separate fully priced and definitized contract action.
(b) The
contract file for each UCA shall be documented to justify issuance and shall
include a Government estimate for the changed requirements.
(a)(1) Issuance of undefinitized contract actions with a Government estimated cost or price over $100,000 must be approved in writing by the head of the contracting activity.
(2) All other undefinitized contract actions must be approved in writing by the procurement officer.
(3) In emergency
situations, approval may be given orally and subsequently confirmed in writing.
(4) The approval authorities in paragraphs (a)(1) and (2) of this section are not delegable.
(b) (1) Undefinitized contract actions exceeding $100,000 must be issued as bilateral agreements setting forth a ceiling price or "not to exceed" estimated cost figure for the changed contractual requirements. For fixed price contracts the negotiated price for the changed contract requirements shall not exceed the established ceiling price. In the case of cost type contracts any costs eventually negotiated for the changed requirements in excess of the "not to exceed" estimated cost figure shall be non-fee bearing. The ceiling price or "not to exceed" estimated cost figures shall be separately identified in the UCA instrument from the pricing structure of the basic contract.
(2) The head of the contracting
activity may waive the ceiling price or
"not to exceed" estimated cost figure and bilateral agreement requirements
prior to UCA issuance on the basis of urgency. This waiver authority is not
delegable. Any waivers shall be documented in the contract file.
(c) The changed contractual requirements set
forth in the UCA shall be clearly defined and shall be limited to the minimum
effort required to satisfy urgent program requirements while a cost proposal is
prepared, analyzed and negotiated.
(d) For undefinitized contract actions with a
Government estimate greater than $1,000,000 and not excepted under subpart
1843.7004, a 180 day funding profile shall be obtained from the contractor
prior to execution of the undefinitized contract action.
(e) Undefinitized contract actions with a
Government estimated cost or price greater than $1,000,000 shall include a
requirement that the change shall be separately accounted for by the contractor
to the degree necessary to provide the contracting officer visibility into
actual costs incurred pending definitization. The contracting officer may waive
this requirement for individual actions if there is a documented finding that
such accounting procedures would not be cost effective. Any such waiver shall
not affect existing NASA Form 533 or other financial reporting requirements set
forth in the contract.
1843.7004 Exceptions.
(a)
Exceptions to the requirement for head of the contracting activity or procurement officer approval
of undefinitized contract actions are--
(1)
Modifications to facilities contracts;
(2)
Modifications to construction contracts using Construction of Facilities
funding;
(3) Urgent
modifications resulting from Shuttle manifest changes or that involve immediate
issues of safety or damage/loss of property;
(4)
Modifications to decrease the contract value; or
(5)
Modifications to letter contracts.
(b) The contract file for any of the
modifications in paragraph (a) of this section shall cite the exception and
include complete supporting rationale for its applicability.
1843.7005 Definitization.
(a) Undefinitized contract actions should be
sufficiently complete and detailed as to enable the contractor to begin
immediate preparation of a cost proposal for the changed requirement. The NASA
goal is to definitize UCAs within 180 days from date of issuance.
(b) Whenever possible, pre-change study efforts
or engineering change proposals (ECPs) shall be utilized to negotiate and
definitize changes prior to issuance.
1843.7101 Shared Savings Program.
This subpart establishes and describes the methods for
implementing and administering a Shared Savings Program. This program provides
an incentive for contractors to propose and implement, with NASA approval,
significant cost reduction initiatives. NASA will benefit as the more efficient
business practices that are implemented lead to reduced costs on current and
follow-on contracts. In return, contractors are entitled to share in cost
savings subject to limits established in the contract. The contracting officer
may require the contractor to provide periodic reporting, or other
justification, or to require other steps (e.g., cost segregation) to ensure
projected cost savings are being realized.
1843.7102 Solicitation provision and
contract clause.
The contracting officer shall insert the clause
at 1852.243-71,
Shared Savings, in all solicitations and contracts expected to exceed
$1,000,000, except those awarded under FAR
Part 12,
NRA and AO procedures, or the SBIR and STTR programs.