[Federal Register: July 21, 2000 (Volume 65, Number 141)]
[Rules and Regulations]               
[Page 45305-45306]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]



48 CFR Parts 1807, 1815, and 1825

Acquisition Planning

AGENCY: National Aeronautics and Space Administration (NASA).

ACTION: Final rule.


SUMMARY: This final rule amends the NASA FAR Supplement (NFS) to: 
include additional circumstances when NASA field installations are 
required to identify certain acquisitions through the Master Buy Plan 
(MBP) process; add NASA's policy regarding the use of the structured 
approach for developing profit or fee when contracting with non-profit 
organizations which was mistakenly removed; and make editorial 
corrections and miscellaneous changes dealing with NASA internal and 
administrative matters.

EFFECTIVE DATE: July 21, 2000.

of Procurement, Program Operations Division (Code HS), Washington, DC 
20546, (202) 358-0461, e-mail: bruce.king@hq.nasa.gov.


A. Background

    Current Master Buy Plan (MBP) submission guidance does not address 
high value acquisitions from or through other government agencies and 
Chiles Act cooperative agreements, and any acquisition deemed to be of 
significant importance to the Agency regardless of its dollar value. 
This final rule provides that NASA field installations identify these 
acquisitions through the MBP process for possible Headquarters review 
and approval. The change to NASA's structured approach for developing a 
profit or fee objective (64 FR 51472-51476, September 23, 1999) 
mistakenly deleted NASA's policy

[[Page 45306]]

regarding the use of the structured approach for non-profit 
organizations and NASA's policy not to pay profit or fee on contracts 
with educational institutions. This final rule corrects this error by 
adding the previous language as section 1815.404-471-6. Additionally, 
editorial corrections and miscellaneous changes are made to correct the 
MBP format instructions, revise Internet reference citations, and 
correct the instructions for completing the Customs Form 7501, Entry 

B. Regulatory Flexibility Act

    NASA certifies that this rule will not have a significant economic 
impact on a substantial number of small business entities under the 
Regulatory Flexibility Act (5U.S.C. 601 et seq.) because it does not 
impose any new requirements.

C. Paperwork Reduction Act

    The Paperwork Reduction Act does not apply because the changes to 
the NFS do not impose any recordkeeping or information collection 
requirements that require the approval of the Office of Management and 
Budget under 44 U.S.C. 3501, et seq.

List of Subparts in 48 CFR Parts 1807, 1815, and 1825

    Government procurement.

Tom Luedtke,
Associate Administrator for Procurement.

    Accordingly, 48 CFR Parts 1807, 1815 and 1825 are amended as 
    1. The authority citation for 48 CFR Parts 1807, 1815 and 1825 
continues to read as follows:

    Authority: 42 U.S.C. 2473(c)(1)


    2. In section 1807.103 revise paragraph (d)(iii)(E) to read as 

1807.103  Agency-head responsibilities.

    (d) * * *
    (iii) * * *
    (E) From or through other Government agencies except when the value 
of the acquisition meets the Master Buy Plan threshold (see 
* * * * *
    3. Amend section 1807.7000 by removing ``(http://ec.msfc.nasa.gov/
hq/cci/first.html)'' and adding ``(http://procurement.nasa.gov/cgi-bin/
CCI/first.cgi)'' in its place.

    4. In section 1807.7101, revise paragraph (a) and add paragraphs 
(c)(3) and (c)(4) to read as follows:

1807.7101  Applicability.

    (a) The Master Buy Plan applies to each negotiated acquisition, 
including supplemental agreements and acquisitions through or from 
other Government agencies, where the dollar value, including the 
aggregate amount of options, follow-on acquisitions, or later phases of 
multi-phase acquisitions, is expected to equal or exceed $50,000,000.
* * * * *
    (c) * * *
    (3) Any cooperative agreement notice where the total value (the 
Government's contribution plus the contribution of the recipient) of 
any resulting cooperative agreement is expected to equal or exceed 
    (4) Any acquisition designated by NASA Headquarters regardless of 
its value.
* * * * *

    5. In Table 1807-1, the second sentence of items (5)-(9) in the 
section titled ``Supplementary instructions by heading number'' is 
amended by removing the words ``column (8)'' and adding ``column (7)'' 
in its place.


    6. Add section 1815.404-471-6 to read as follows:

1815.404-471-6  Modification to structured profit/fee approach for 
nonprofit organizations.

    (a) The structured approach was designed for determining profit or 
fee objectives for commercial organizations. However, the structured 
approach must be used as a basis for arriving at profit/fee objectives 
for nonprofit organizations (FAR subpart 31.7), excluding educational 
institutions (FAR subpart 31.3), in accordance with paragraph (b) of 
this section. It is NASA policy not to pay profit or fee on contracts 
with educational institutions.
    (b) For contracts with nonprofit organizations under which profit 
or fee is involved, an adjustment of up to 3 percent of the costs in 
Block 13 of NASA Form 634 must be subtracted from the total profit/fee 
objective. In developing this adjustment, it is necessary to consider 
the following factors:
    (1) Tax position benefits;
    (2) Granting of financing through letters of credit;
    (3) Facility requirements of the nonprofit organization; and
    (4) Other pertinent factors that may work to either the advantage 
or disadvantage of the contractor in its position as a nonprofit 


    7. Revise section 1825.903 to read as follows:

1825.903  Exempted supplies.

    (a) Through delegation from the Associate Administrator for 
Procurement, procurement officers are authorized to certify duty free 
entry for articles imported into the United States, if those articles 
are procured by NASA or by other U.S. Government agencies, or by U.S. 
Government contractors or subcontractors when title to the articles is 
or will be vested in the U.S. Government in accordance with the terms 
of the contract or subcontract. Procurement officers shall complete the 
certification set forth in 14 CFR 1217.104(a) or 1217.104(c) (http://
www.access.gpo.gov/nara/cfr/cfr-retrieve.html#page1). Upon arrival of 
foreign supplies at a port of entry, the consignee, generally the 
commercial carrier or its agent (import broker), will file Customs Form 
7501, Entry Summary. This form is available from Service Ports 
(http://www.customs.ustreas.gov/location/ports/index.htm) or from NASA 
Headquarters' forms library (https://extranet.hq.nasa.gov/nef/user/
form_search.cfm). All duty-free certificates must be coordinated with 
the center Chief Counsel. Procurement officers must maintain a record 
of each certification and make this record available for periodic 
review by NASA Headquarters and the U.S. Customs Service.

[FR Doc. 00-18390 Filed 7-20-00; 8:45 am]