[Federal Register Volume 76, Number 131 (Friday, July 8, 2011)]
[Rules and Regulations]
[Pages 40280-40281]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-17116]
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NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
48 CFR Parts 1834
RIN 2700-AD29
Major System Acquisition; Earned Value Management
AGENCY: National Aeronautics and Space Administration (NASA).
ACTION: Final rule.
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SUMMARY: NASA is issuing a final rule to delete the requirement in the
NASA FAR Supplement (NFS) for contractors to establish and maintain an
Earned Value Management System (EVMS) for firm-fixed-price (FFP)
contracts. The final rule recognizes the reduction in risk associated
with FFP contracts and intends to relieve contractors of an unnecessary
reporting burden.
DATES: Effective Date: July 8, 2011.
FOR FURTHER INFORMATION CONTACT: Carl Weber, NASA, Office of
Procurement, Contract Management Division (Suite 5K80); (202) 358-1784;
e-mail: [email protected].
SUPPLEMENTARY INFORMATION:
I. Background
NASA published a proposed rule in the Federal Register at 76 FR
7526 on February 10, 2011. The sixty day comment period expired April
11, 2011. Three comments were received from two respondents. No changes
are made to the proposed rule as a result of public comments.
II. Discussion and Analysis of the Public Comments
Comment: The respondent suggested that the policy should more
clearly define in house and external Earned Value Management
Requirements.
Response: The regulation in the NASA FAR Supplement, 1834.201, is
only directed toward contractor external efforts. Internal Government
requirements are included but are not regulatory and not a part of this
rulemaking.
Comment: The respondent suggested including a statement requiring
any additional reporting requirements for FFP contracts to be
identified in the solicitation or subsequent contract modification.
Response: NASA will collect the necessary data for project
management and oversight. The rule states: ``The contracting officer
shall collaborate with the government's program/project manager to
ensure the appropriate data can be obtained or generated to fulfill
program management needs''. There are various methods to obtain the
appropriate data, and the CO will include Data Requirements in the
solicitation and/or contract as needed on a case-by-case basis.
Comment: The respondent stated that NASA should consider
implementing the change to existing contracts providing additional cost
savings to NASA and the industry.
Response: NASA will not require, but may consider, implementing the
change on existing contracts, on a case-by-case basis.
III. 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 rule is not a major rule under 5 U.S.C. 804.
IV. Regulatory Flexibility Act
This final rule will not have a significant economic impact on a
substantial number of small entities within the meaning of the
Regulatory Flexibility Act, 5 U.S.C. 601 et seq., because it relaxes
previous requirements in the NASA FAR Supplement and does not impose a
significant economic impact beyond that previously required.
V. Paperwork Reduction Act
This final rule does not impose any new information collection
requirements that require the approval of the Office of Management and
Budget (OMB) under 44 U.S.C. 3501, et seq.
List of Subjects in 48 CFR Parts 1834
Government procurement.
William P. McNally,
Assistant Administrator for Procurement.
Accordingly, 48 CFR Part 1834 is amended as follows:
PART 1834--MAJOR SYSTEM ACQUISITION
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1. The authority citation for 48 CFR Part 1834 continues to read as
follows:
Authority: 42 U.S.C. 2455(a), 2473(c)(1)
[[Page 40281]]
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2. Section 1834.201 is revised to read as follows:
1834.201 Policy.
(a) NASA requires use of an Earned Value Management System (EVMS)
on acquisitions for development or production work, including
development or production work for flight and ground support systems
and components, prototypes, and institutional investments (facilities,
IT infrastructure, etc.) as specified below:
(1) For cost or fixed-price incentive contracts and subcontracts
valued at $50 Million or more the contractor shall have an EVMS that
has been determined by the cognizant Federal agency to be in compliance
with the guidelines in the American National Standards Institute/
Electronic Industries Alliance Standard 748, Earned Value Management
Systems (ANSI/EIA-748).
(2) For cost or fixed-price incentive contracts and subcontracts
valued at $20 Million or more but less than $50 Million, the contractor
shall have an EVMS that complies with the guidelines in ANSI/EIA-748,
as determined by the cognizant Contracting Officer.
(3) For cost or fixed-price incentive contracts and subcontracts
valued at less than $20 Million the application of EVM is optional and
is a risk-based decision at the discretion of the program/project
manager.
(b) Requiring earned value management for firm-fixed-price (FFP)
contracts and subcontracts of any dollar value is discouraged; however,
a schedule management system and adequate reporting shall be required
to plan and track schedule performance for development or production
contracts valued at $20 Million or more. In addition, for FFP contracts
that are part of a program/project of $50 Million or more, the
contracting officer shall collaborate with the government's program/
project manager to ensure the appropriate data can be obtained or
generated to fulfill program management needs and comply with NASA
Procedural Requirements (NPR) 7120.5.
(c) An EVMS is not required on non-developmental contracts for
engineering support services, steady state operations, basic and
applied research, and routine services such as janitorial services or
grounds maintenance services.
(d) Contracting officers shall request the assistance of the
cognizant Defense Contract Management Agency (DCMA) office in
determining the adequacy of proposed EVMS plans and procedures and
system compliance.
(e) Notwithstanding the EVMS requirements above, if an offeror
proposes to use a system that has not been determined to be in
compliance with the American National Standards Institute/Electronics
Industries Alliance (ANSI/EIA) Standard-748, Earned Value Management
Systems, the offeror shall submit a comprehensive plan for compliance
with these EVMS standards, as specified in 1852.234-1, Notice of Earned
Value Management System. Offerors shall not be eliminated from
consideration for contract award because they do not have an EVMS that
complies with these standards.
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3. In section 1834.203-70, the introductory text is revised to read as
follows:
1834.203-70 NASA solicitation provision and contract clause.
Except for firm-fixed price contracts and the contracts identified
in 1834.201(a)(3), the contracting officer shall insert--
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[FR Doc. 2011-17116 Filed 7-7-11; 8:45 am]
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