[Federal Register Volume 72, Number 125 (Friday, June 29, 2007)]
[Rules and Regulations]
[Pages 35666-35667]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E7-12656]
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NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
48 CFR Part 1816
RIN 2700-AD33
Award Fee Administrative Changes
AGENCY: National Aeronautics and Space Administration.
ACTION: Final rule.
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SUMMARY: This final rule makes administrative changes to the NASA FAR
Supplement (NFS) to clarify the requirements for award fee evaluation
factors and to add a requirement for a documented cost/benefit analysis
when an award fee contract is used.
EFFECTIVE DATE: This rule is effective June 29, 2007.
FOR FURTHER INFORMATION CONTACT: Tom O'Toole, NASA, Office of
Procurement, Contract Management Division (Suite 5J86); (202) 358-0478;
e-mail: [email protected].
SUPPLEMENTARY INFORMATION:
A. Background
The Government Accountability Office (GAO) report entitled ``NASA
Procurement: Use of Award Fees for Achieving Program Outcomes Should Be
Improved'' (GAO-07-58), dated January 2007, included recommendations
for improving NASA award fee policy. The GAO recommended that NASA
require cost/benefit analysis documentation when using an award fee
contract and also recommended that NASA reemphasize the importance of
tying award fee criteria to desired outcomes and limiting the number of
evaluation subfactors. NASA agreed with both GAO recommendations, and
is revising the NFS accordingly.
This is not a significant regulatory action and, therefore, was not
subject to review under Section 6(b) of Executive Order 12866,
Regulatory Planning and Review, dated September 30, 1993. This interim
rule is not a major rule under 5 U.S.C. 804.
B. Regulatory Flexibility Act
The Regulatory Flexibility Act does not apply to this final rule.
This final rule does not constitute a significant revision within the
meaning of FAR 1.501 and Public Law 98-577, and publication for public
comment is not required. However, NASA will consider comments from
small entities concerning the affected NFS coverage in accordance with
5 U.S.C. 610. Interested parties should cite 5 U.S.C. 601, et seq., in
correspondence.
C. Paperwork Reduction Act
The Paperwork Reduction Act (Pub. L. 104-13) is not applicable
because the NFS changes do not impose information collection
requirements that require the approval of the Office of Management and
Budget under 44 U.S.C. 3501, et seq.
List of Subjects in 48 CFR Part 1816
Government procurement.
Sheryl Goddard,
Acting Assistant Administrator for Procurement.
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Accordingly, 48 CFR part 1816 is amended as follows:
PART 1816--TYPES OF CONTRACTS
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1. The authority citation for 48 CFR part 1816 continues to read as
follows:
Authority: 42 U.S.C. 2473(c)(1).
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2. Revise paragraph (a) of section 1816.405-270 to read as follows:
1816.405-270 CPAF contracts.
(a) Use of an award fee incentive shall be approved in writing by
the procurement officer. The procurement officer's approval shall
include a discussion of the other types of
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contracts considered and shall indicate why an award fee incentive is
the appropriate choice, including evidence that any additional
administrative effort and cost required to monitor and evaluate
performance are justified by the expected benefits (see FAR 16.405-
2(b)(1)(iii)). Award fee incentives should not be used on contracts
with a total estimated cost and fee less than $2 million per year. The
procurement officer may authorize use of award fee for lower-valued
acquisitions, but should do so only in exceptional situations, such as
contract requirements having direct health or safety impacts, where the
judgmental assessment of the quality of contractor performance is
critical.
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3. Revise paragraph (a) of section 1816.405-274 to read as follows:
816.405-274 Award fee evaluation factors.
(a) Explicit evaluation factors shall be established for each award
fee period. Factors should be tied to desired outcomes. If used,
subfactors should be limited to the minimum necessary to ensure a
thorough evaluation and an effective incentive.
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[FR Doc. E7-12656 Filed 6-28-07; 8:45 am]
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