PART 1832
CONTRACT FINANCING
SUBPART 1832.1 NON-COMMERICAL ITEM PURCHASE FINANCING
1832.111 Contractor clauses for non-commercial purchases.
1832.111-70 NASA contract clause.
SUBPART 1832.2 COMMERCIAL ITEM PURCHASE FINANCING
1832.202-1 Policy.
1832.206 Solicitation provisions and contract clauses.
SUBPART 1832.4 ADVANCE PAYMENTS FOR NON-COMMERCIAL ITEMS
1832.402 General.
1832.406 Letters of credit.
1832.407 Interest.
1832.409 Contracting officer action.
1832.409-1 Recommendation for approval.
1832.409-170 NASA procedure for approval.
1832.410 Findings, determination, and authorization.
SUBPART 1832.5 PROGRESS PAYMENTS BASED ON COSTS
1832.501 General.
1832.501-1 Customary progress payment rates.
1832.501-2 Unusual progress payments.
1832.502 Preaward matters.
1832.502-2 Contract finance office clearance.
1832.502-4 Contract clauses.
1832.502-470 NASA contract clause.
SUBPART 1832.7 CONTRACT FUNDING
1832.702 Policy.
1832.702-70 NASA policy.
1832.704 Limitation of cost or funds.
1832.704-70 Incrementally funded fixed-price contracts.
1832.705 Contract clauses.
1832.705-2 Clauses for limitation of cost or funds.
1832.705-270 NASA clauses for limitation of cost or funds.
SUBPART 1832.9 PROMPT PAYMENT
1832.906 Contract financing payments.
1832.908 Contract clauses.
1832.970 Payments to Canadian Commercial Corporation.
SUBPART 1832.10 PERFORMANCE-BASED PAYMENTS
1832.1004 Procedure.
1832.1005 Contract clauses.
1832.1006 Agency approvals.
PART 1832
1832.006-2 Definitions.
The Associate Administrator for Procurement is the Agency remedy coordination official.
Subpart 1832.1--Non-Commercial Item Purchase Financing
1832.111 Contract clauses for non-commercial purchases.
1832.111-70 NASA contract clause.
The contracting officer shall insert the clause at 1852.232-79, Payment for On-Site Preparatory Costs, in solicitations and contracts for construction on a fixed-price basis when progress payments are contemplated and pro rata payment of on-site preparatory costs to the contractor is appropriate.
Subpart 1832.2--Commercial Item Purchase Financing
1832.202-1 Policy.
(b)(6) Advance payment limitations do not apply to expendable launch vehicle (ELV) service contracts. (see 1832.402).
1832.206 Solicitation provisions and contract clauses.
(g)(2) The installment payment rate shall be that which is common in the commercial marketplace for the purchased item. If there is no commonly used rate, the contracting officer shall determine the appropriate rate. In no case shall the rate exceed that established in the clause at FAR 52.232-30.
Subpart 1832.4--Advance Payments for Non-Commercial Items
1832.402 General.
(e)(1) The Director of the Headquarters Office of Procurement Analysis Division (Code HC) is the approval authority for all advance payments except the following:
(A) The procurement officer is the approval authority for non-fee bearing contracts with domestic entities when the cumulative contract value is $25,000,000 or less, and for all increases to such contracts over $25,000,000 previously approved by Code HC as long as the advance payment amount outstanding at any time is not increased.
(B) The contracting officer is the approval authority for the following actions. In these cases, a findings and determination (see FAR 32.410) is not required.
(a) Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) Phase I contracts. A class deviation has been signed, effective through September 30, 2000 (for SBIRs) and September 30, 1996 (for STTRs), authorizing use of advance payments on these contracts. The contracting officer shall annotate the contract file that the deviation is on file at the NASA Headquarters Office of Procurement (Code HC).
(b) Expendable launch vehicle (ELV) service contracts. 42 U.S.C. 2459c authorizes advance payments for these contracts. The contracting officer shall document the contract file with the rationale for approving the use of advance payments.
(e)(2) All advance payment authorization requests, except those authorized by 1832.402(e)(1)(B), shall be coordinated with the installation Deputy Chief Financial Officer.
1832.406 Letters of credit.
(b)(1) Each installation is considered a contracting agency for the purposes of this requirement.
1832.407 Interest.
(d)(1) Advance payments without interest are authorized.
1832.409 Contracting officer action.
1832.409-1 Recommendation for approval.
1832.409-170 NASA procedure for approval.
In addition to the items listed in FAR 32.409-1, requests for Headquarters approval of advance payments (see 1832.402(e)(1)) shall include the following information:
(a) Name of the cognizant NASA Headquarters program or staff office;
(b) Name and phone number of the contracting officer or negotiator;
(c) A copy of the proposed advance payments clause;
(d) If a profit/fee is contemplated, the factors considered in determining the profit/fee (see Subpart 1815.9);
(e) Information justifying the adequacy of security to cover the maximum advance payment amount at any time outstanding.
1832.410 Findings, determination, and authorization.
(b) Generally, the format in FAR 32.410 should be used, tailored as follows:
(i) In format subparagraph (a)(2), use the phrase "Advance payments (in an amount not to exceed $..... at any time outstanding)" in all determinations and findings. The phrase means the maximum unliquidated dollar amount a contractor would need in advance payments at any point in time for the particular contract. The amount would not usually be the full contract value. The amount inserted should be based on an analysis of the contractor's financing needs (monthly or other appropriate period) for the specific contract involved.
(ii) In the second sentence of format subparagraph (a)(4), delete the reference to a special bank account if no special bank account is required.
(iii) Use format subparagraph (a)(6), not (a)(7) or (a)(8).
(iv) At the end of format paragraph (b), use "is in the public interest."
(v) in format paragraph (c), use the phrase "(the amount at any time outstanding)" in all determinations and findings.
1832.412 Contract clause.
(a) When the clause at FAR 52.232-12, Advance Payments, is used, make the following modifications:
(i) In the "Maximum Payment" paragraph (either paragraph (e) of the basic clause and Alternate II, or paragraph (d) of Alternate V), in the sentence that begins "When the sum of", change the word "When" to lower case and insert before it:
"Unliquidated advance payments shall not exceed $..... at any time outstanding. In addition...".
(ii) In paragraph (m)(1) delete "in the form prescribed by the administering office" and substitute "on Standard Form 272, Federal Cash Transactions Report, and, if appropriate, Standard Form 272-A, Federal Cash Transactions Report Continuation".
(iii) Annotate the clause "as modified by NASA (October 1996)".
(e) See 1832.412(f).
(f) The contracting officer shall use Alternates IV and V when advance payments are provided on Phase I contracts of the Small Business Innovation Research (SBIR) or Small Business Technology Transfer (STTR) programs. Annotate the clause "as modified by NASA (October 1996)", delete paragraph (a) of Alternate V, and substitute the following:
(a) Requirements for payment. Advance payments will be made under this contract upon receipt of invoices from the Contractor. Invoices should be clearly marked "Small Business Innovation Research Contract" or "Small Business Technology Transfer Contract," as appropriate, to expedite payment processing. One-third of the total contract price will be available to be advanced to the contractor immediately after award, another one-third will be advanced three months after award, and the final one-third will be paid upon acceptance by NASA of the Contractor's final report. By law, full payment must be made no later than 12 months after the date that contract requirements are completed. The Contractor shall flow down the terms of this clause to any subcontractor requiring advance payments.
Subpart 1832.5--Progress Payments Based on Costs
1832.501-1 Customary progress payment rates.
(a) The customary progress payment rate for all NASA contracts is 85 percent for large business, 90 percent for small business, 95 percent for small disadvantaged business, and 100 percent for Phase II contracts in the Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs. The contracting officer shall insert the applicable percentage in paragraphs (a) and (b) of the clause at FAR 52.232-16.
1832.501-2 Unusual progress payments.
The Director of the Headquarters Office of Procurement Analysis Division (Code HC) is the approval authority for the use of unusual progress payments.
1832.502-2 Contract finance office clearance.
The Director of the Headquarters Office of Procurement Analysis Division (Code HC) is the approval authority for the actions in 32.502-2, except the Associate Administrator for Procurement (Code HC) is the approval authority for any deviations addressed in FAR 32.502-2(b).
1832.502-470 NASA contract clause.
The contracting officer may insert a clause substantially as stated at 1852.232-82, Submission of Requests for Progress Payments, in fixed-price solicitations and contracts that provide for progress payments. The recipient of the requests and number of copies may be changed as required.
1832.504 Subcontracts.
(c) Unusual progress payments to subcontractors shall be approved in accordance with 1832.501-2.
Subpart 1832.7--Contract Funding
1832.702-70 NASA policy.
(a) Cost-reimbursement contracts may be incrementally funded only if all the following conditions are met (except that, for cost-reimbursement R&D contracts under which no supplies are deliverable, only the condition in subparagraph (a)(3) of this subsection applies):
(1) The total value of the contract (including options as defined in FAR Subpart 17.2) is $1,000,000 or more.
(2) The period of performance under the contract overlaps the succeeding fiscal year.
(3) The funds are not available to fund the total contract value fully at award.
(b) Fixed-price contracts, other than those for research and development, shall not be incrementally funded.
(c)(1) Fixed-price contracts for research and development may be incrementally funded if the conditions in 1832.702-70(a)(1)-(3) are met and the initial funding of the contract is not less than 50 percent of the total fixed price.
(2) Incrementally funded fixed-price contracts shall be fully funded as soon as adequate funding becomes available.
(d) The procurement officer, with the concurrence of the installation Comptroller, may waive any of the conditions set forth in paragraphs 1832.702-70(a)-(c). The procurement officer shall maintain a record of all such approvals during the fiscal year.
(e) A class deviation from the conditions set forth in paragraphs 1832.702-70(a)-(c) exists to permit incremental funding of contracts under Phase II of the Small Business Innovation Research (SBIR) Program (through September 30, 2000) and Phase II of the Small Business Technology Transfer (STTR) program (through September 30, 1996). This deviation exists with the understanding that the contracts will be fully funded when funds become available.
1832.704 Limitation of cost or funds.
1832.704-70 Incrementally funded fixed-price contracts.
(a) Upon receipt of the contractor's notice under paragraph (c)(1) of the clause at 1852.232-77, Limitation of Funds (Fixed-Price Contract), the contracting officer shall promptly provide written notice to the contractor that the Government is --
(1) Allotting additional funds in a specified amount for continued performance;
(2) Terminating the contract; or
(3) Considering whether to allot additional funds; and
(i) The contractor is entitled to stop work in accordance with paragraph (b) of the clause at 1852.232-77, Limitation of Funds; and
(ii) Any costs expended beyond the amount specified in paragraph (a) of the clause at 1852.232-77, Limitation of Funds, are incurred at the contractor's risk.
(b) Upon determining that the contract will receive no further funds, the contracting officer shall promptly give notice of the Government's decision and terminate for the convenience of the Government.
1832.705-2 Clauses for limitation of cost or funds.
1832.705-270 NASA clauses for limitation of cost or funds.
(a) The contracting officer shall insert the clause at 1852.232-77, Limitation of Funds (Fixed-Price Contract), in solicitations and contracts for fixed-price incrementally funded research and development.
(b) The contracting officer shall insert a clause substantially as stated at 1852.232-81, Contract Funding, in Section B of solicitations and contracts containing the clause at FAR 52.232-22, Limitation of Funds. Insert the amounts of funds available for payment, the items covered, and the applicable period of performance. The amount obligated for fee in paragraph (b) of the clause should always be sufficient to pay fee anticipated to be earned for the work funded by the amount in paragraph (a) of the clause.
Subpart 1832.9--Prompt Payment
1832.906 Contract financing payments.
(a) Except as authorized in 1832.970, is NASA's policy to make contract financing payments on the 30th day after the designated billing office has received a proper request. However, the due date for making contract financing payments for a specific contract may be earlier than the 30th day, but not earlier than 7 days, after the designated billing office has received a proper request, provided that:
(i) The contractor provides consideration whose value is determined to be greater than the cost to the United States Treasury of interest on funds paid prior to the 30th day, calculated using the Current Value of Funds Rate published annually in the Federal Register (subject to quarterly revision);
(ii) The contracting officer approves the payment date change, with the concurrence of the installation Financial Management Officer; and
(iii) The contract file includes documentation regarding the value of the consideration and the analysis determining that value.
1832.908 Contract clauses.
(c) When the clause at FAR 52.232-25, Prompt Payment, is used in contracting with the CCC subject to the conditions at 1832.970, make the following modifications:
(i) Insert "17th" in lieu of "30th" in paragraphs (a)(1)(i)(A), (a)(1)(i)(B), and (a)(1)(ii); and
(ii) Annotate the clause "as modified by NASA (DATE)".
1832.970 Payments to Canadian Commercial Corporation.
Pursuant to the authority of FAR 32.904(a)(3), invoice and contractor financing payments for contracts (other than Fixed-Price Architect-Engineer Contracts, Construction Contracts, and contracts for meats, perishables and dairy products) with the Canadian Commercial Corporation (CCC) shall be made earlier than the standard contract payment due dates. Accordingly, the phrase "the 17th day" shall be used in lieu of the "the 30th day" at FAR 32.905(a)(1) and 32.906(a).
Subpart 1832.10--Performance-Based Payments
1832.1004 Procedure.
(b)(2) In determining the amount of performance-based payments, contracting officers shall ensure that the payments will not result in an unreasonably low or negative level of contractor investment. To make this assessment, contracting officers shall request the contractor to submit with its proposal a numeric and graphic funding profile showing the cash flow and contractor investment in the contract.
1832.1005 Contract clauses.
(a) If the contract is for launch services, the contracting officer shall delete paragraph (f) of the clause at FAR 52.232-32 in accordance with 1832.1009.
1832.1006 Agency approvals.
Performance-based payments shall be approved in accordance with field installation procedures.
1832.1009 Title.
In accordance with 42 U.S.C. 2465d, NASA shall not take title to launch vehicles under contracts for launch services unless one of the exceptions in the law applies. However, the law does not eliminate NASA's right to take title to other property acquired or produced by the contractor under a contract containing a title provision.