NASA FAR Supplement: Proposal Adequacy Checklist
Federal Register, Volume 79 Issue 38 (Wednesday, February 26, 2014)
Federal Register Volume 79, Number 38 (Wednesday, February 26, 2014)
Rules and Regulations
Pages 10687-10691
From the Federal Register Online via the Government Printing Office www.gpo.gov
FR Doc No: 2014-04210
Page 10687
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NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
48 CFR Parts 1815 and 1852
RIN 2700-AE13
NASA FAR Supplement: Proposal Adequacy Checklist
AGENCY: National Aeronautics and Space Administration.
ACTION: Final rule.
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SUMMARY: NASA has adopted as final, without change, a proposed rule amending the NASA FAR Supplement (NFS) to incorporate a proposal adequacy checklist for proposals in response to solicitations that require the submission of certified cost or pricing data.
DATES: Effective Date: March 28, 2014.
FOR FURTHER INFORMATION CONTACT: Bill Roets, NASA, Office of Procurement, Contract Management Division (Suite 5K34); (202) 358-4483; email: william.roets-1@nasa.gov.
SUPPLEMENTARY INFORMATION:
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Background
A proposed rule was published on October 29, 2013 (78 FR 64442) that supported the NASA Assistant Administrator for Procurement's ``Reducing Transaction Costs in NASA Procurements'' initiative by incorporating the requirement for a proposal adequacy checklist into the NFS at 1815.408-70(c), and associated solicitation provision at NFS 1852.215-85, to ensure offerors take responsibility for submitting thorough, accurate, and complete proposals. The provision will be included in solicitations that require the submission of certified cost or pricing data.
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Discussion and Analysis
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Summary of Significant Changes
Based on a review of the public comments discussed below, NASA has concluded that no change to the proposed rule is necessary.
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Analysis of Public Comment
NASA received comments from one respondent on the proposed rule. Comments are discussed below.
a. Overly Burdensome
Comment: Respondent opined that the proposed rule passed the administrative burden and shifted the associated costs directly onto the contractor which was inappropriate. Respondent suggested, as an alternative, that solicitations require standardized table of contents with a proposal.
Response: This rule does not impose additional requirements over what is already required under the conditions when certified cost or pricing data is required. This provision is a single uniform tool that is applicable across NASA to promote consistency in compliance with FAR Table 15-2.
b. Applicability Clarification
Comment: Respondent was concerned that this rule would be applied to programs that have a phased application process (e.g. Phase A, Phase B). Respondent requested clarification that the rule would only apply to the full (Phase B) application.
Response: The checklist is only utilized when certified cost or pricing data is required per FAR 15.403-4. In the example, if the Phase A acquisition did not require certified cost or pricing data, use of the checklist would not be required by this rule.
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Executive Orders 12866 and 13563
Executive Orders (E.O.s) 12866 and 13563 direct agencies to assess all costs and benefits of available regulatory alternatives and, if regulation is necessary, to select regulatory approaches that maximize net benefits (including potential economic, environmental, public health, and safety effects, distributive impacts, and equity). E.O. 13563 emphasizes the importance of quantifying both costs and benefits, of reducing costs, of harmonizing rules, and of promoting flexibility. This is not a significant regulatory action and, therefore, was not subject to review under section 6(b) of E.O. 12866, Regulatory Planning and Review, dated September 30, 1993. This rule is not a major rule under 5 U.S.C. 804.
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Regulatory Flexibility Act
A final regulatory flexibility analysis has been prepared consistent with the Regulatory Flexibility Act, at 5 U.S.C. 601, et. seq., and is summarized as follows:
This final rule amends the NASA FAR Supplement (NFS) to add a checklist for NASA contractors to complete under solicitations that require the submission of certified cost or pricing data. This rule supports the NASA Assistant Administrator for Procurement's ``Reducing Transaction Costs in NASA Procurements'' initiative.
The objective of the rule is to ensure that offerors submit thorough, accurate, and complete proposals. By filling out the checklist, offerors will be able to self-validate their proposals.
No issues were raised by the public in response to the initial regulatory flexibility analysis.
No comments were filed by the Chief Counsel for Advocacy of the Small Business Administration in response to the rule.
The final rule will apply to solicitations, for which certified cost or pricing data are required. Based on data collected in the Federal Procurement Data System for FY2010-2012, there are on average 1162 actions per year that met the criteria where the proposal adequacy checklist is to be utilized. On average, 462 of those actions are with small business concerns.
No alternatives were determined; the proposal adequacy checklist was created directly from requirements already in the FAR.
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Paperwork Reduction Act
This final rule contains information collection requirements that require the approval of the Office of Management and Budget under the Paperwork Reduction Act (44 U.S.C. Chapter 35). However, these changes to the NFS do not impose additional information collection requirements to the paperwork burden previously approved under OMB Control Number 9000-0013, entitled ``Cost or Pricing Data Exemption Information.''
List of Subjects in 48 CFR 1815 and 1852
Government Procurement.
William P. McNally,
Assistant Administrator for Procurement.
Accordingly, 48 CFR Parts 1815 and 1852 are amended as follows:
PART 1815--CONTRACTING BY NEGOTIATION
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The authority citation for Part 1815 continues to read as follows:
Authority: 42 U.S.C. 2473(c)(1).
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In section 1815.408-70, paragraph (c) is added to read as follows:
1815.408-70 NASA solicitation provisions and contract clauses.
* * * * *
(c) When the solicitation requires the submission of certified cost or pricing data, the contracting officer shall include 1815.215-85, Proposal Adequacy Checklist, in the solicitation to facilitate submission of a thorough, accurate, and complete proposal.
Page 10688
PART 1852--SOLICITATION PROVISIONS AND CONTRACT CLAUSES
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The authority citation for Part 1852 continues to read as follows:
Authority: 42 U.S.C. 2473(c)(1).
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Section 1852.215-85 is added to read as follows:
1852.215-85 Proposal adequacy checklist.
As prescribed in 1815.408-70(c), use the following provision:
PROPOSAL ADEQUACY CHECKLIST (MAR 2014)
The offeror shall complete the following checklist, providing location of requested information, or an explanation of why the requested information is not provided. In preparation of the offeror's checklist, offerors may elect to have their prospective subcontractors use the same or similar checklist as appropriate.
Proposal Adequacy Checklist
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If not provided explain (may use
References Submission item Proposal page No. continuation pages traceable to
this checklist)
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GENERAL INSTRUCTIONS
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FAR 15.408, Table 15-2, Section Is there a properly completed first page of the
I Paragraph A. proposal per FAR 15.408 Table 15-2 I.A or as
specified in the solicitation?
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FAR 15.408, Table 15-2, Section Does the proposal identify the need for
I Paragraph A(7). Government-furnished material/tooling/test
equipment? Include the accountable contract
number and contracting officer contact
information if known.
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FAR 15.408, Table 15-2, Section If your organization is subject to Cost
I Paragraph A(8). Accounting Standards (CAS), does the proposal
identify the current status of your CAS
Disclosure Statement? Does the proposal
identify and explain notifications of
noncompliance with Cost Accounting Standards
Board or Cost Accounting Standards (CAS); any
proposal inconsistencies with your disclosed
practices or applicable CAS; and
inconsistencies with your established
estimating and accounting principles and
procedures?
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FAR 15.408, Table 15-2, Section Does the proposal disclose any other known
I, Paragraph C(1). activity that could materially impact the
costs?
FAR 2.101, ``Cost or pricing data'' This may include, but is not limited to, such
factors as--
(1) Vendor quotations;
(2) Nonrecurring costs;
(3) Information on changes in production
methods and in production or purchasing
volume;
(4) Data supporting projections of business
prospects and objectives and related
operations costs;
(5) Unit-cost trends such as those associated
with labor efficiency;
(6) Make-or-buy decisions;
(7) Estimated resources to attain business
goals; and
(8) Information on management decisions that
could have a significant bearing on costs.
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FAR 15.408, Table 15-2, Section Is an Index of all certified cost or pricing
I Paragraph B. data and information accompanying or
identified in the proposal provided and
appropriately referenced?
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FAR 15.403-1(b)................. Are there any exceptions to submission of
certified cost or pricing data pursuant to FAR
15.403-1(b)? If so, is supporting
documentation included in the proposal? (Note
questions 18-20.)
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FAR 15.408, Table 15-2, Section Does the proposal disclose the judgmental
I Paragraph C(2)(i). factors applied and the mathematical or other
methods used in the estimate, including those
used in projecting from known data?
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FAR 15.408, Table 15-2, Section Does the proposal disclose the nature and
I Paragraph C(2)(ii). amount of any contingencies included in the
proposed price?
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FAR 15.408 Table 15-2, Section Does the proposal explain the basis of all cost
II, Paragraph A or B. estimating relationships (labor hours or
material) proposed on other than a discrete
basis?
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FAR 15.408, Table 15-2, Section Is there a summary of total cost by element of
I Paragraphs D and E. cost and are the elements of cost cross-
referenced to the supporting cost or pricing
data? (Breakdowns for each cost element must
be consistent with your cost accounting
system, including breakdown by year.)
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FAR 15.408, Table 15-2, Section If more than one Contract Line Item Number
I Paragraphs D and E. (CLIN) or sub Contract Line Item Number (sub-
CLIN) is proposed as required by the RFP, are
there summary total amounts covering all line
items for each element of cost and is it cross-
referenced to the supporting cost or pricing
data?
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FAR 15.408, Table 15-2, Section Does the proposal identify any incurred costs
I Paragraph F. for work performed before the submission of
the proposal?
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FAR 15.408, Table 15-2, Section Is there a Government forward pricing rate
I Paragraph G. agreement (FPRA)? If so, the offeror shall
identify the official submittal of such rate
and factor data. If not, does the proposal
include all rates and factors by year that are
utilized in the development of the proposal
and the basis for those rates and factors?
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COST ELEMENTS
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MATERIALS AND SERVICES
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FAR 15.408, Table 15-2, Section Does the proposal include a consolidated
II Paragraph A. summary of individual material and services,
frequently referred to as a Consolidated Bill
of Material (CBOM), to include the basis for
pricing? The offeror's consolidated summary
shall include raw materials, parts,
components, assemblies, subcontracts and
services to be produced or performed by
others, identifying as a minimum the item,
source, quantity, and price.
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SUBCONTRACTS (Purchased materials or services)
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FAR 15.404-3(c)................ Per the thresholds of FAR 15.404-3(c),
FAR 52.244-2....................... Subcontract Pricing Considerations, does the
proposal include a copy of the applicable
subcontractor's certified cost or pricing
data?
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FAR 15.408, Table 15-2, Note 1; Is there a price/cost analysis establishing the
Section II Paragraph A. reasonableness of each of the proposed
subcontracts included with the proposal?
If the offeror's price/cost analyses are not
provided with the proposal, does the proposal
include a matrix identifying dates for receipt
of subcontractor proposal, completion of fact
finding for purposes of price/cost analysis,
and submission of the price/cost analysis?
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EXCEPTIONS TO CERTIFIED COST OR PRICING DATA
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FAR 52.215-20.................. Has the offeror submitted an exception to the
FAR 2.101, ``commercial item''..... submission of certified cost or pricing data
for commercial items proposed either at the
prime or subcontractor level, in accordance
with provision 52.215-20?
a. Has the offeror specifically identified the
type of commercial item claim (FAR 2.101
commercial item definition, paragraphs (1)
through (8)), and the basis on which the item
meets the definition?
b. For modified commercial items (FAR 2.101
commercial item definition paragraph (3)); did
the offeror classify the modification(s) as
either--
i. A modification of a type customarily
available in the commercial marketplace
(paragraph (3)(i)); or
ii. A minor modification (paragraph (3)(ii))
of a type not customarily available in the
commercial marketplace made to meet Federal
Government requirements not exceeding the
thresholds in FAR 15.403-1(c)(3)(iii)(B)?
c. For proposed commercial items ``of a
type'', or ``evolved'' or modified (FAR
2.101 commercial item definition paragraphs
(1) through (3)), did the contractor
provide a technical description of the
differences between the proposed item and
the comparison item(s)?
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FAR 15.408, Table 15-2, Section Does the proposal support the degree of
II Paragraph A(1). competition and the basis for establishing the
source and reasonableness of price for each
subcontract or purchase order priced on a
competitive basis exceeding the threshold for
certified cost or pricing data?
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INTERORGANIZATIONAL TRANSFERS
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FAR 15.408, Table 15-2, Section For inter-organizational transfers proposed at
II Paragraph A.(2). cost, does the proposal include a complete
cost proposal in compliance with Table 15-2?
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FAR 15.408, Table 15-2, Section For inter-organizational transfers proposed at
II Paragraph A(1). price in accordance with FAR 31.205-26(e),
does the proposal provide an analysis by the
prime that supports the exception from
certified cost or pricing data in accordance
with FAR 15.403-1?
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DIRECT LABOR
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FAR 15.408, Table 15-2, Section Does the proposal include a time phased (i.e.;
II Paragraph B. monthly, quarterly) breakdown of labor hours,
rates and costs by category or skill level? If
labor is the allocation base for indirect
costs, the labor cost must be summarized in
order that the applicable overhead rate can be
applied.
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FAR 15.408, Table 15-2, Section For labor Basis of Estimates (BOEs), does the
II Paragraph B. proposal include labor categories, labor
hours, and task descriptions, (e.g.; Statement
of Work reference, applicable CLIN, Work
Breakdown Structure, rationale for estimate,
applicable history, and time-phasing)?
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FAR subpart 22.10.............. If covered by the Service Contract Labor
Standards statute (41 U.S.C. chapter 67), are
the rates in the proposal in compliance with
the minimum rates specified in the statute?
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INDIRECT COSTS
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FAR 15.408, Table 15-2, Section Does the proposal indicate the basis of
II Paragraph C. estimate for proposed indirect costs and how
they are applied? (Support for the indirect
rates could consist of cost breakdowns,
trends, and budgetary data.)
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OTHER COSTS
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FAR 15.408, Table 15-2, Section Does the proposal include other direct costs
II Paragraph D. and the basis for pricing? If travel is
included does the proposal include number of
trips, number of people, number of days per
trip, locations, and rates (e.g. airfare, per
diem, hotel, car rental, etc)?
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FAR 15.408, Table 15-2, Section If royalties exceed $1,500 does the proposal
II Paragraph E. provide the information/data identified by
Table 15-2?
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FAR 15.408, Table 15-2, Section When facilities capital cost of money is
II Paragraph F. proposed, does the proposal include submission
of Form CASB-CMF or reference to an FPRA/FPRP
and show the calculation of the proposed
amount?
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FORMATS FOR SUBMISSION OF LINE ITEM SUMMARIES
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FAR 15.408, Table 15-2, Section Are all cost element breakdowns provided using
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the applicable format prescribed in FAR
15.408, Table 15-2 III? (or alternative format
if specified in the request for proposal).
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FAR 15.408, Table 15-2, Section If the proposal is for a modification or change
III Paragraph B. order, have cost of work deleted (credits) and
cost of work added (debits) been provided in
the format described in FAR 15.408, Table 15-
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III.B?
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FAR 15.408, Table 15-2, Section For price revisions/redeterminations, does the
III Paragraph C. proposal follow the format in FAR 15.408,
Table 15-2.III.C?
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OTHER
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FAR 16.4....................... If an incentive contract type, does the
proposal include offeror proposed target cost,
target profit or fee, share ratio, and, when
applicable, minimum/maximum fee, ceiling
price?
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FAR 16.203-4 and FAR 15.408 If Economic Price Adjustments are being
Table 15-2, Section II, Paragraphs proposed, does the proposal show the rationale
A, B, C, and D. and application for the economic price
adjustment?
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FAR 52.232-28.................. If the offeror is proposing Performance-Based
Payments--did the offeror comply with FAR
52.232-28?
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FAR 15.408(n).................. Excessive Pass-through Charges--Identification
FAR 52.215-22...................... of Subcontract Effort: If the offeror intends
FAR 52.215-23...................... to subcontract more than 70% of the total cost
of work to be performed, does the proposal
identify: (i) the amount of the offeror's
indirect costs and profit applicable to the
work to be performed by the proposed
subcontractor(s); and (ii) a description of
the added value provided by the offeror as
related to the work to be performed by the
proposed subcontractor(s)?
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(End of provision)
FR Doc. 2014-04210 Filed 2-25-14; 8:45 am
BILLING CODE 7510-01-P
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