NASA FAR Sup 1817

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PART 1817
SPECIAL CONTRACTING METHODS
(Revised November 25, 2015)

TABLE OF CONTENTS

SUBPART 1817.1 MULTIYEAR CONTRACTING
1817.105 Policy.
1817.105-1 Uses.

SUBPART 1817.2 OPTIONS
1817.200 Scope of subpart.
1817.203 Solicitations.
1817.204 Contracts.
1817.206 Evaluation.
1817.207 Exercise of options.
1817.207-70 Analysis to support exercise of options.
1817.208 Solicitation provisions and contract clauses.

SUBPART 1817.4 LEADER COMPANY CONTRACTING
1817.401 General.

SUBPART 1817.5 INTERAGENCY ACQUISITIONS
1817.500 Scope of subpart.
1817.502 Procedures.
1817.502-1 General.
1817.502-2 The Economy Act.
1817.503 Ordering procedures.
1817.503-70 Order requirements and provisions.
1817.504 Agency reporting requirements.

SUBPART 1817.70 PHASED ACQUISITION
1817.7000 Definitions.
1817.7001 Down-selections in phased acquisitions.
1817.7001-1 Pre-solicitation planning.
1817.7001-2 Evaluation factors.
1817.7001-3 Down-selection milestones.
1817.7001-4 Synopsis.
1817.7001-5 Progressive competition.
1817.7002 Contract clauses.

PART 1817
SPECIAL CONTRACTING METHODS
(Revised November 25, 2015)

Subpart 1817.1—Multiyear Contracting

1817.105 Policy.

1817.105-1 Uses.

(b) The Assistant Administrator for Procurement, Program Operations Division, is the approval authority for the use of the multiyear contracting technique. Requests for approval shall be signed by the procurement officer and shall include a description of the acquisition, identification of anticipated contract costs and funding, and a determination, with supporting rationale, that each of the criteria in FAR 17.105-1(b) is met by the proposed use of multiyear contracting.

Subpart 1817.2—Options

1817.200 Scope of subpart.
FAR Subpart 17.2 applies to all NASA contracts.

1817.203 Solicitations.

(g)(2) The procurement officer is authorized to approve option quantities greater than 50 percent.

1817.204 Contracts.

(e)(1) The 5-year period of performance limitation (basic plus option periods) applies to all NASA contracts regardless of type and other procurement award instruments, except as stated in (e)(2). This includes agreements (e.g. basic ordering agreements, blanket purchase agreements), interagency acquisitions, and orders placed under agreements or awarded under a Federal Supply Schedule or other indefinite delivery/indefinite quantity contracts awarded by other agencies. See 1816.505-71 for limitations on the ordering period of task and delivery order contracts.
(2) The 5-year period of performance limitation in paragraph (e)(1) does not apply to the following circumstances:
(i) Acquisitions for the design, development, test, and evaluation (DDT&E) of end-item systems development and/or hardware production. The period of performance for DDT&E should be consistent with the time needed to complete system development or for hardware production efforts to perform Phase A (concept studies, concept & technology development phase), Phase B (preliminary design & detailed engineering/technology completion phase), Phase C (final design, components/systems fabrication and testing phase), Phase D (system assembly, integration, testing, and launch phase), Phase E (systems and mission operations, sustaining engineering, maintenance support), and Phase F (close-out/decommissioning efforts). It is NASA policy to procure Phase E and F efforts separately from Phase A through D to allow for the maximum number of industry opportunities to compete for awards so long as awards to different contractors will not pose critical integration risks to NASA. For those acquisitions where it is justified to procure Phases A through D or A through F and the period of performance is expected to exceed 5 years, a deviation is not required if the period of performance is approved as part of the original acquisition plan and the work included in the scope of the contract.
(ii) Phase-in periods of up to 90 days where required for the efficient transition of contracting activities for a period that is concurrent with the predecessor contract in accordance with the use of FAR Clause 52.237-3, Continuity of Services. Phase-in periods may be in addition to the 5-year period of performance limitation.
(iii) Periods of up to 6 months beyond the 5-year period of performance limitation when permitted by FAR Clause 52.217-8, Option to Extend Services, for unplanned, unforeseen circumstances or events that are beyond the control of the Contracting Officer, such as a protest, provided that the option is exercised consistent with the limits outlined in FAR 37.111 and 17.207(f).
(3) Deviations are not required for the aforementioned circumstances provided the entire period of performance, to include options and phase-in periods for the acquisition are justified and approved in the original written acquisition plan or procurement strategy meeting (PSM) by the appropriate approving authority, e.g., Assistant Administrator for Procurement approval is required for PSMs held at Headquarters. For any periods beyond those specifically permitted by (e)(2), an approved deviation addressing the requirements in (e)(5) is required.
(4) The program/project office and the contracting officer shall review the requirement at the mid-point of the performance period to ensure that the products or services continue to fulfill NASA’s mission needs and that the procurement award instrument continues to provide the best means of satisfying the requirement.
(5) Requests for deviations from the 5-year period of performance limitation policy or for periods beyond those permitted by (e)(2) shall be submitted to the cognizant analyst in the Office of Procurement, Program Operations Division for approval by the Assistant Administrator for Procurement. The deviation request shall include justification for exceeding five years or additional periods beyond those permitted by (e)(2). The deviation request and other required documentation, e.g., JOFOC, synopsis, etc. shall identify the specific period of extension to the period of performance. At a minimum, the justification shall discuss planned future assessment of continued performance either prior to exercise of options or at the mid-point of a basic contract with no options. Evidence shall also be included showing that the extended years can be reasonably priced. The justification shall explain why longer than a 5-year period of performance is the most prudent business course of action. The justification shall also address how the longer period of performance will result in obtaining the best value for the Government if the supply or service is readily available in the open market by considering the current market and the uncertainties in future market conditions and by explaining why competition, which acts as a primary guarantor of best value to the Government, is not appropriate for the acquisition.

1817.206 Evaluation.

(a) The contracting officer shall ensure all offers are evaluated, including the basic contract and any option quantities or periods included in the solicitation, as well as any period permitted by FAR 52.217-8 Extension of Services and any other additional options for quantities or services clauses included in the solicitation (See FAR 17.208) except as provided in paragraph (b) of this section.

(b)(i) The procurement officer is the approval authority for determinations by the contracting officer not to evaluate offers for any option quantities or periods.
(ii) Unless a determination has been approved under 1817.206(b)(i), the selection statement for each acquisition involving an option shall address the source selection authority's consideration of the option as part of the initial competition.

1817.207 Exercise of options.

(c)(2) In addition to determining the option fulfills an existing need, the contracting officer shall determine that there is no change in the scope of the option requirements.

(f) Options under cost type contracts shall contain an estimated cost for the option period(s).
(f)(2) Use of the provision (or formula) for determining the price of a fixed price option requires advance approval by the Assistant Administrator for Procurement, Program Operations Division
(f)(3)(ii) Use of a formula to determine the fee of an option in a cost-type contract requires advance approval of the Assistant Administrator for Procurement, Program Operations Division. The formula shall preclude the contractor from increasing costs for the purpose of earning additional fee.

1817.207-70 Analysis to support exercise of options.

(a) The contracting officer’s determination that exercise of the option is the most advantageous method of fulfilling the requirement shall be based on input and information from the requiring organization. The contracting officer and the requiring organization shall ensure that analysis sufficient to support the determination that option exercise is the most advantageous method is completed in advance of providing the notice to the contractor required by FAR 17.207(a). Sufficient time shall remain in the performance period to allow the acquisition team to pursue appropriate alternative approaches with minimal impact to the program or project in terms of technical, cost, or schedule risk should the analysis conclude that the best programmatic path is not exercising the option.

(b) The analysis required to support the option exercise determination must include consideration of other factors in addition to price. In addition to the other factors contained in FAR 17.207(e), the determination to exercise the option should include, but is not limited to, consideration of—
(1) The contractor’s performance in satisfying contract requirements, for example, receiving satisfactory performance ratings (see subpart 1842.15) and the contractor’s level of success in implementing and maintaining small business programs (including mentoring arrangements), which were evaluated as part of the source selection process and incorporated into the awarded contract; and
(2) The results of market research activities to identify any technical, engineering or scientific advances that offer programmatic benefits or performance improvements beyond those that are contractually available under the option to be exercised.

1817.208 Solicitation provisions and contract clauses.

Subpart 1817.4—Leader Company Contracting

1817.401 General.
It is NASA policy not to use the leader company contracting technique.

Subpart 1817.5—Interagency Acquisitions

1817.500 Scope of subpart.

1817.502 Procedures.

1817.502-1 General.

1817.502-2 The Economy Act.

1817.503 Ordering procedures.

1817.503-70 Order requirements and provisions.
In addition to the requirements identified in FAR 17.503 the following information shall be included in the order, as appropriate:

1817.504 Agency reporting requirements.
Upon request, Center Procurement Officers shall submit information on interagency acquisitions to be included in the Agency’s annual report to OMB to the Office of Procurement, Contract and Grant Policy Division.

Subpart 1817.70--Phased Acquisition

1817.7000 Definitions.

1817.7001 Down-selections in phased acquisitions.

1817.7001-1 Pre-solicitation planning.

1817.7001-2 Evaluation factors.
A separate set of evaluation factors must be developed for each phase in a down-selection competition. Since these competitive down-selection strategies anticipate that a preceding phase contractor will be the subsequent phase contractor, the evaluation factors for initial phase award must specifically include evaluation of the offerors’ abilities to perform all phases.

1817.7001-3 Down-selection milestones.

1817.7001-4 Synopsis.

1817.7001-5 Progressive competition.

1817.7002 Contract clauses.

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