Government Contracts NASA Issues Two Procurement Notices Adding Policy Guidance
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Thursday, June 20, 2019

NASA Issues Two Procurement Notices Adding Policy Guidance

By Government Contracts Editorial Staff

The National Aeronautics and Space Administration has issued two procurement notices revising the NASA Federal Acquisition Regulation Supplement. The changes impact NASA’s internal operating procedures and do not have a significant cost or administrative impact on contractors or offerors.

Award Fee Policy. PN 19-01 (¶70,049.284) adds guidance to ensure independence in the award fee determination process and greater focus on the timely evaluation of contractor performance. The changes apply to NASA’s most significant contracts for design and development programs and projects. The revisions to NFS 1816.405-272, Award fee evaluation periods, address contracts with a life-cycle cost of $250 million or more, or that are otherwise designated by the NASA Associate Administrator. The revisions limit the award fee evaluation period to six months for contracts in the implementation phase. The revisions to NFS 1816.405-273, Award fee evaluations, address contracts with a life-cycle cost of at least $1 billion, or that are otherwise designated by the NASA Associate Administrator. These revisions require the Fee Determining Official to provide an executive summary presentation to a NASA Headquarters independent panel. Finally, the notice revises the NASA Award Fee Contracting Guide to include the enhanced award fee policy. This PN went into effect May 14, 2019.

Indemnification. PN 19-02 (¶70,049.285) adds new NFS 1850.104-371, Indemnification for NASA Launch Services and Reentry Services. The new section provides policy guidance for contracting officers on contractor requests for indemnification in accordance with section 305 of the NASA Transition Authorization Act of 2017 (PL 115-10). Section 305 grants NASA discretion to indemnify contractors providing launch services and re-entry services against successful claims by third parties for death, bodily injury, or loss of or damage to property. Claims may include reasonable expenses of litigation or settlement. The new NFS section requires indemnification requests to be submitted to the cognizant, Contracting Officer, and the CO to process the requests, in accordance with NFS 1850.104-3 and FAR 50.104-3. The effective date of this PN is May 15, 2019.

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