NASA Federal Acquisition Regulation Supplement: Clarification of Award Fee Evaluations and Payments (NFS Case 2016-N008), 23667-23669 [2016-09356]

Download as PDF Federal Register / Vol. 81, No. 78 / Friday, April 22, 2016 / Proposed Rules SUPPLEMENTARY INFORMATION: NATIONAL AERONAUTICS AND SPACE ADMINISTRATION Public Comment Procedures If you wish to comment, you may submit your comments by any one of several methods listed in the ADDRESSES section above. Please make your comments as specific as possible by confining them to issues directly related to the content of the proposed rule, and explain the basis for your comments. The comments and recommendations that will be most useful and likely to influence agency decisions are: 1. Those supported by quantitative information or studies; and 2. Those that include citations to, and analyses of, the applicable laws and regulations. The BLM is not obligated to consider or include in the Administrative Record for the rule comments received after the close of the comment period (see DATES) or comments delivered to an address other than those listed above (see ADDRESSES). Comments, including names and street addresses of respondents, will be available for public review at the address listed under ADDRESSES during regular hours (7:45 a.m. to 4:15 p.m.), Monday through Friday, except holidays. Before including your address, telephone number, email address, or other personal identifying information in your comment, be advised that your entire comment—including your personal identifying information—may be made publicly available at any time. While you can ask in your comment to withhold from public review your personal identifying information, we cannot guarantee that we will be able to do so. mstockstill on DSK4VPTVN1PROD with PROPOSALS Background The proposed rule was published on February 25, 2016 (81 FR 9674), with a 60-day comment period closing on April 25, 2016. Since publication, the BLM has received requests to extend the comment period on the proposed rule. After considering these requests, the BLM determined that it is appropriate to grant the requests to extend the comment period, and the BLM is hereby extending the comment period on the rule for 30 days. The closing date of the extended comment period is May 25, 2016. Janice M. Schneider, Assistant Secretary, Land and Minerals Management. [FR Doc. 2016–09439 Filed 4–21–16; 8:45 am] BILLING CODE 4310–84–P VerDate Sep<11>2014 17:53 Apr 21, 2016 Jkt 238001 48 CFR Parts 1816 and 1852 RIN 2700–AE31 NASA Federal Acquisition Regulation Supplement: Clarification of Award Fee Evaluations and Payments (NFS Case 2016–N008) National Aeronautics and Space Administration. ACTION: Proposed rule. AGENCY: NASA is proposing to amend the NASA Federal Acquisition Regulation Supplement (NFS) to clarify NASA’s award fee process by incorporating terms used in award fee contracting; guidance relative to final award fee evaluations; release of source selection information; and the calculation of the provisional award fee payment percentage in NASA end-item award fee contracts. DATES: Comments on the proposed rule should be submitted in writing to the address shown below on or before June 21, 2016, to be considered in the formation of a final rule. ADDRESSES: Submit comments identified by NFS Case 2016–N008, using any of the following methods: Æ Regulations.gov: http:// www.regulations.gov. Submit comments via the Federal eRulemaking portal by entering ‘‘NFS Case 2016–N008’’ under the heading ‘‘Enter keyword or ID’’ and selecting ‘‘Search.’’ Select the link ‘‘Submit a Comment’’ that corresponds with ‘‘NFS Case 2016–N008.’’ Follow the instructions provided at the ‘‘Submit a Comment’’ screen. Please include your name, company name (if any), and ‘‘NFS Case 2016–N008’’ on your attached document. Æ Email: william.roets-1@nasa.gov. Include NFS Case 2016–N008 in the subject line of the message. Æ Fax: (202) 358–3082. Æ Mail: NASA Headquarters (HQ), Office of Procurement, Contract and Grant Policy Division, Attn: Mr. William Roets, Suite 5M18, 300 E Street SW., Washington, DC 20546–0001. FOR FURTHER INFORMATION CONTACT: Mr. William Roets, NASA HQ, Office of Procurement, Contract and Grant Policy Division, Suite 5M18, 300 E Street SW., Washington, DC 20456–0001. Telephone 202–358–4483; facsimile 202–358–3082. SUPPLEMENTARY INFORMATION: SUMMARY: I. Background NASA is proposing to revise the NFS to clarify NASA’s award fee process. As PO 00000 Frm 00018 Fmt 4702 Sfmt 4702 23667 part of the NASA Office of Procurement internal reviews and the NASA Office of the Inspector General (OIG) audit entitled ‘‘NASA’s Use of Award Fee Contracts,’’ Report Number IG–14–003, NASA is implementing revisions to NFS 1816.4 and 1852.216–77 to clarify NASA’s award fee evaluation and payment processes. II. Discussion NASA is proposing the following revisions to clarify NASA’s award fee process: • Add new definitions section at NFS 1816.001. Definitions for Earned Award Fee and Unearned Award Fee are being added to provide clarity and consistency in how these terms are utilized in NASA’s award fee evaluation process. • Revise NFS 1816.405–273(b) to provide further management review for final award fee determinations that meet certain criteria as outlined in this rule’s revised NFS text. • Revise NFS 1816.405–273(c) to provide clarification regarding the release of source selection information that is included in the Contractor Performance Assessment Reporting System (CPARS). • Revise NFS 1816.405–276(b) and 1852.216–77(c)(3) to clarify how provisional award fee payments are calculated in NASA end-item award fee contracts. The current NFS text describes this calculation as ‘‘limited to a percentage not to exceed 80 percent of the prior interim period’s evaluation score’’ and yet does not address how the first award fee evaluation period should be handled. To address this issue, NFS is being revised to read: ‘‘limited to a percentage not to exceed 80 percent of the prior interim period’s evaluation score, except for the first evaluation period, which is limited to 80 percent of the available award fee for that evaluation period.’’ • In addition, since the FAR removed clause 52.216–13 in Federal Acquisition Circular (FAC) 2005–17, NASA is removing references to this clause contained in NFS 1816.307, 1816.307– 70, and 1852.216–89. 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 E:\FR\FM\22APP1.SGM 22APP1 23668 Federal Register / Vol. 81, No. 78 / Friday, April 22, 2016 / Proposed Rules mstockstill on DSK4VPTVN1PROD with PROPOSALS and benefits, of reducing costs, of harmonizing rules, and of promoting flexibility. This is not a significant regulatory action and, therefore, was not subject to review under section 6(b) of E.O. 12866, Regulatory Planning and Review, dated September 30, 1993. This rule is not a major rule under 5 U.S.C. 804. IV. Regulatory Flexibility Act NASA does not expect this rule to 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 the guidance largely clarifies NASA’s award fee evaluation and payment process, which should result in a more consistent use and administration of award fees within NASA. These revisions should provide all entities, both large and small, with a positive benefit. However, an initial regulatory flexibility analysis (IRFA) has been performed and is summarized as follows: An analysis of data in the Federal Procurement Data System (FPDS) revealed that award fee contracts are primarily awarded to large businesses with large dollar contracts. An analysis of FPDS data over the past three years (Fiscal Year (FY)2013 through FY2015) showed that an average of 157 award fee contracts were awarded at NASA per year, of which 33 (approximately 20%) were awarded to small businesses. Thus, the application of the award fee revisions contained in this rule do not apply to a substantial number of small entities. The rule imposes no reporting, recordkeeping, or other information collection requirements. The rule does not duplicate, overlap, or conflict with any other Federal rules, and there are no known significant alternatives to the rule. NASA invites comments from small business concerns and other interested parties on the expected impact of this rule on small entities. NASA will also consider comments from small entities concerning the existing regulations in subparts affected by this rule in accordance with 5 U.S.C. 610. Interested parties shall submit such comments separately and should cite 5 U.S.C. 610 (NFS Case 2016–N008), in correspondence. V. Paperwork Reduction Act The rule does not contain any information collection requirements that require the approval of the Office of Management and Budget under the Paperwork Reduction Act (44 U.S.C. chapter 35). VerDate Sep<11>2014 17:53 Apr 21, 2016 Jkt 238001 List of Subjects in 48 CFR Part 1816 and 1852 Government procurement. Manuel Quinones, NASA FAR Supplement Manager. Accordingly, 48 CFR parts 1816 and 1852 are proposed to be amended as follows: ■ 1. The authority citation for parts 1816 and 1852 continues to read as follows: Authority: 51 U.S.C. 20113(a) and 48 CFR chapter 1. PART 1816—TYPES OF CONTRACTS 2. Add section 1816.001 to read as follows: ■ 1816.001 Definitions. As used in this part— ‘‘Earned Award Fee’’ means the payment of the full amount of an award fee evaluation period’s score/rating. ‘‘Unearned Award Fee’’ means the difference between the available award fee pool amount for a given award fee evaluation period less the contractor’s earned award fee amount for that same evaluation period. * * * * * 1816.307 [Amended] 3. Amend section 1816.307 by removing paragraph (g)(1) in its entirety. ■ 4. Revise section 1816.307–70, in paragraph (f), to read as follows: ■ 1816.307–70 NASA contract clauses. * * * * * (f) When FAR clause 52.216–7, Allowable Cost and Payment, is included in the contract, as prescribed at FAR 16.307(a), the contracting officer should include the clause at 1852.216– 89, Assignment and Release Forms. * * * * * ■ 5. Amend section 1816.405–273 by revising paragraphs (b) and (c) to read as follows: 1816.405–273 Award fee evaluations. * * * * * (b) End Item Contracts. On contracts, such as those for end item deliverables, where the true quality of contractor performance cannot be measured until the end of the contract, only the last evaluation is final. At that point, the total contract award fee pool is available, and the contractor’s total performance is evaluated against the award fee plan to determine total earned award fee. In addition to the final evaluation, interim evaluations are done to monitor performance prior to contract completion, provide feedback to the contractor on the Government’s PO 00000 Frm 00019 Fmt 4702 Sfmt 4702 assessment of the quality of its performance, and establish the basis for making interim award fee payments (see 1816.405–276(a)). These interim evaluations and associated interim award fee payments are superseded by the fee determination made in the final evaluation at contract completion. However, if the final award fee adjectival rating is higher or lower than the average adjectival rating of all the interim award fee periods, or if the final award fee score is eight base percentage points higher or lower than the average award fee score of all interim award fee periods (e.g. 80% to 88%), then the Head of the Contracting Activity (HCA) or the Deputy Chief Acquisition Officer (if the HCA is the Fee Determination Official) shall review and concur in the final award fee determination. The Government will then pay the contractor, or the contractor will refund to the Government, the difference between the final award fee determination and the cumulative interim fee payments. (c) Control of evaluations. Interim and final evaluations may be used to provide past performance information during the source selection process in future acquisitions and should be marked and controlled as ‘‘Source Selection Information—see FAR 3.104’’. See FAR 42.1503(h) regarding the requirements for releasing Source Selection Information included in the Contractor Performance Assessment Reporting System (CPARS). * * * * * ■ 6. Amend section 1816.405–276 by revising the last sentence of paragraph (b) to read as follows: 1816.405–276 limitations. Award fee payments and * * * * * (b) * * * For an end item contract, the total amount of provisional payments in a period is limited to a percentage not to exceed 80 percent of the prior interim period’s evaluation score, except for the first evaluation period which is limited to 80 percent of the available award fee for that evaluation period. * * * * * PART 1852—SOLICITATION PROVISIONS AND CONTRACT CLAUSES 7. Amend section 1852.216–77 by revising the date of the clause and paragraph (c)(3). The revised text reads as follows: ■ 1852.216–77 Contracts. * E:\FR\FM\22APP1.SGM * * 22APP1 Award Fee for End Item * * Federal Register / Vol. 81, No. 78 / Friday, April 22, 2016 / Proposed Rules Award Fee for End Item Contracts (Date) * * * * * (c)(1) * * * (3) Provisional award fee payments will [insert ‘‘not’’ if applicable] be made under this contract pending each interim evaluation. If applicable, provisional award fee payments will be made to the Contractor on a [insert the frequency of provisional payments (not more often than monthly) basis. The amount of award fee which will be provisionally paid in each evaluation period is limited to [Insert a percent not to exceed 80 percent] of the prior interim evaluation score (see [insert applicable cite]), except for the first evaluation period which is limited to [insert a percent not to exceed 80 percent] of the available award fee for that evaluation period. Provisional award fee payments made each evaluation period will be superseded by the interim award fee evaluation for that period. If provisional payments made exceed the interim evaluation score, the Contractor will either credit the next payment voucher for the amount of such overpayment or refund the difference to the Government, as directed by the Contracting Officer. If the Government determines that (i) the total amount of provisional fee payments will apparently substantially exceed the anticipated final evaluation score, or (ii) the prior interim evaluation is ‘‘poor/ unsatisfactory,’’ the Contracting Officer will direct the suspension or reduction of the future payments and/or request a prompt refund of excess payments as appropriate. Written notification of the determination will be provided to the Contractor with a copy to the Deputy Chief Financial Officer (Finance). * * * * * ■ 8. Amend section 1852.216–89 by revising the date of the clause, and the first sentence of the paragraph to read as follows: 1852.216–89 Forms. * * * Assignment and Release * * mstockstill on DSK4VPTVN1PROD with PROPOSALS Assignment and Release Forms ([Date]) The Contractor shall use the following forms to fulfill the assignment and release requirements of FAR clause 52.216–7, Allowable Cost and Payment: * * * * * [FR Doc. 2016–09356 Filed 4–21–16; 8:45 am] BILLING CODE 7510–13–P VerDate Sep<11>2014 17:53 Apr 21, 2016 Jkt 238001 DEPARTMENT OF COMMERCE National Oceanic and Atmospheric Administration 50 CFR Part 300 [Docket No. 160104009–6314–01] RIN 0648–BF65 International Fisheries; Tuna and Tuna-Like Species in the Eastern Pacific Ocean; Fishing Restrictions Regarding Mobulid Rays National Marine Fisheries Service (NMFS), National Oceanic and Atmospheric Administration (NOAA), Commerce. ACTION: Proposed rule; request for comments. AGENCY: NMFS proposes regulations under the Tuna Conventions Act to implement Resolution C–15–04 (Resolution on the Conservation of Mobulid Rays Caught in Association with Fisheries in the IATTC Convention Area) of the Inter-American Tropical Tuna Commission (IATTC). Per the Resolution, this rule would prohibit any part or whole carcass of mobulid rays (i.e., the family Mobulidae, which includes manta rays (Manta spp.) and devil rays (Mobula spp.)) caught in the IATTC Convention Area from being retained on board, transshipped, landed, stored, sold, or offered for sale. In accordance with the Resolution, the proposed rule also includes requirements for release of mobulid rays. This proposed rule would also revise related codified text for consistency with the recent amendments to the Tuna Conventions Act. This action is necessary for the United States to satisfy its obligations as a member of the IATTC. DATES: Comments on the proposed rule and supporting documents must be submitted in writing by May 23, 2016. ADDRESSES: You may submit comments on this document, identified by NOAA– NMFS–2016–0035, by any of the following methods: • Electronic Submission: Submit all electronic public comments via the Federal e-Rulemaking Portal. Go to http://www.regulations.gov/ #!docketDetail;D=NOAA-NMFS-20160035, click the ‘‘Comment Now!’’ icon, complete the required fields, and enter or attach your comments. • Mail: Submit written comments to Rachael Wadsworth, NMFS West Coast Region Long Beach Office, 501 W. Ocean Blvd., Suite 4200, Long Beach, CA 90802. Include the identifier SUMMARY: PO 00000 Frm 00020 Fmt 4702 Sfmt 4702 23669 ‘‘NOAA–NMFS–2016–0035’’ in the comments. Instructions: Comments must be submitted by one of the above methods to ensure they are received, documented, and considered by NMFS. Comments sent by any other method, to any other address or individual, or received after the end of the comment period, may not be considered. All comments received are a part of the public record and will generally be posted for public viewing on www.regulations.gov without change. All personal identifying information (e.g., name, address, etc.) submitted voluntarily by the sender will be publicly accessible. Do not submit confidential business information, or otherwise sensitive or protected information. NMFS will accept anonymous comments (enter ‘‘N/A’’ in the required fields if you wish to remain anonymous). Copies of the draft Regulatory Impact Review and other supporting documents are available via the Federal eRulemaking Portal: http:// www.regulations.gov, docket NOAA– NMFS–2016–0035 or by contacting the Regional Administrator, William W. Stelle, Jr., NMFS West Coast Region, 7600 Sand Point Way NE., Bldg 1, Seattle, WA 98115–0070, or RegionalAdministrator.WCRHMS@ noaa.gov. FOR FURTHER INFORMATION CONTACT: Rachael Wadsworth, NMFS, West Coast Region, 562–980–4036. SUPPLEMENTARY INFORMATION: Background on the IATTC The United States is a member of the IATTC, which was established under the 1949 Convention for the Establishment of an Inter-American Tropical Tuna Commission. In 2003, the IATTC adopted the Convention for the Strengthening of the IATTC Established by the 1949 Convention between the United States of America and the Republic of Costa Rica (Antigua Convention). The Antigua Convention entered into force in 2010. The United States acceded to the Antigua Convention on February 24, 2016. The full text of the Antigua Convention is available at: https://www.iattc.org/ PDFFiles2/Antigua_Convention_Jun_ 2003.pdf. The IATTC consists of 21 member nations and four cooperating nonmember nations and facilitates scientific research into, as well as the conservation and management of, tuna and tuna-like species in the IATTC Convention Area. The IATTC Convention Area is defined as waters of E:\FR\FM\22APP1.SGM 22APP1

Agencies

[Federal Register Volume 81, Number 78 (Friday, April 22, 2016)]
[Proposed Rules]
[Pages 23667-23669]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-09356]


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NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Parts 1816 and 1852

RIN 2700-AE31


NASA Federal Acquisition Regulation Supplement: Clarification of 
Award Fee Evaluations and Payments (NFS Case 2016-N008)

AGENCY: National Aeronautics and Space Administration.

ACTION: Proposed rule.

-----------------------------------------------------------------------

SUMMARY: NASA is proposing to amend the NASA Federal Acquisition 
Regulation Supplement (NFS) to clarify NASA's award fee process by 
incorporating terms used in award fee contracting; guidance relative to 
final award fee evaluations; release of source selection information; 
and the calculation of the provisional award fee payment percentage in 
NASA end-item award fee contracts.

DATES: Comments on the proposed rule should be submitted in writing to 
the address shown below on or before June 21, 2016, to be considered in 
the formation of a final rule.

ADDRESSES: Submit comments identified by NFS Case 2016-N008, using any 
of the following methods:
    [cir] Regulations.gov: http://www.regulations.gov. Submit comments 
via the Federal eRulemaking portal by entering ``NFS Case 2016-N008'' 
under the heading ``Enter keyword or ID'' and selecting ``Search.'' 
Select the link ``Submit a Comment'' that corresponds with ``NFS Case 
2016-N008.'' Follow the instructions provided at the ``Submit a 
Comment'' screen. Please include your name, company name (if any), and 
``NFS Case 2016-N008'' on your attached document.
    [cir] Email: william.roets-1@nasa.gov. Include NFS Case 2016-N008 
in the subject line of the message.
    [cir] Fax: (202) 358-3082.
    [cir] Mail: NASA Headquarters (HQ), Office of Procurement, Contract 
and Grant Policy Division, Attn: Mr. William Roets, Suite 5M18, 300 E 
Street SW., Washington, DC 20546-0001.

FOR FURTHER INFORMATION CONTACT: Mr. William Roets, NASA HQ, Office of 
Procurement, Contract and Grant Policy Division, Suite 5M18, 300 E 
Street SW., Washington, DC 20456-0001. Telephone 202-358-4483; 
facsimile 202-358-3082.

SUPPLEMENTARY INFORMATION:

I. Background

    NASA is proposing to revise the NFS to clarify NASA's award fee 
process. As part of the NASA Office of Procurement internal reviews and 
the NASA Office of the Inspector General (OIG) audit entitled ``NASA's 
Use of Award Fee Contracts,'' Report Number IG-14-003, NASA is 
implementing revisions to NFS 1816.4 and 1852.216-77 to clarify NASA's 
award fee evaluation and payment processes.

II. Discussion

    NASA is proposing the following revisions to clarify NASA's award 
fee process:
     Add new definitions section at NFS 1816.001. Definitions 
for Earned Award Fee and Unearned Award Fee are being added to provide 
clarity and consistency in how these terms are utilized in NASA's award 
fee evaluation process.
     Revise NFS 1816.405-273(b) to provide further management 
review for final award fee determinations that meet certain criteria as 
outlined in this rule's revised NFS text.
     Revise NFS 1816.405-273(c) to provide clarification 
regarding the release of source selection information that is included 
in the Contractor Performance Assessment Reporting System (CPARS).
     Revise NFS 1816.405-276(b) and 1852.216-77(c)(3) to 
clarify how provisional award fee payments are calculated in NASA end-
item award fee contracts. The current NFS text describes this 
calculation as ``limited to a percentage not to exceed 80 percent of 
the prior interim period's evaluation score'' and yet does not address 
how the first award fee evaluation period should be handled. To address 
this issue, NFS is being revised to read: ``limited to a percentage not 
to exceed 80 percent of the prior interim period's evaluation score, 
except for the first evaluation period, which is limited to 80 percent 
of the available award fee for that evaluation period.''
     In addition, since the FAR removed clause 52.216-13 in 
Federal Acquisition Circular (FAC) 2005-17, NASA is removing references 
to this clause contained in NFS 1816.307, 1816.307-70, and 1852.216-89.

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

[[Page 23668]]

and benefits, of reducing costs, of harmonizing rules, and of promoting 
flexibility. This is not a significant regulatory action and, 
therefore, was not subject to review under section 6(b) of E.O. 12866, 
Regulatory Planning and Review, dated September 30, 1993. This rule is 
not a major rule under 5 U.S.C. 804.

IV. Regulatory Flexibility Act

    NASA does not expect this rule to 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 the 
guidance largely clarifies NASA's award fee evaluation and payment 
process, which should result in a more consistent use and 
administration of award fees within NASA. These revisions should 
provide all entities, both large and small, with a positive benefit. 
However, an initial regulatory flexibility analysis (IRFA) has been 
performed and is summarized as follows:
    An analysis of data in the Federal Procurement Data System (FPDS) 
revealed that award fee contracts are primarily awarded to large 
businesses with large dollar contracts. An analysis of FPDS data over 
the past three years (Fiscal Year (FY)2013 through FY2015) showed that 
an average of 157 award fee contracts were awarded at NASA per year, of 
which 33 (approximately 20%) were awarded to small businesses. Thus, 
the application of the award fee revisions contained in this rule do 
not apply to a substantial number of small entities.
    The rule imposes no reporting, recordkeeping, or other information 
collection requirements. The rule does not duplicate, overlap, or 
conflict with any other Federal rules, and there are no known 
significant alternatives to the rule.
    NASA invites comments from small business concerns and other 
interested parties on the expected impact of this rule on small 
entities.
    NASA will also consider comments from small entities concerning the 
existing regulations in subparts affected by this rule in accordance 
with 5 U.S.C. 610. Interested parties shall submit such comments 
separately and should cite 5 U.S.C. 610 (NFS Case 2016-N008), in 
correspondence.

V. Paperwork Reduction Act

    The rule does not contain any information collection requirements 
that require the approval of the Office of Management and Budget under 
the Paperwork Reduction Act (44 U.S.C. chapter 35).

List of Subjects in 48 CFR Part 1816 and 1852

    Government procurement.

Manuel Quinones,
NASA FAR Supplement Manager.

    Accordingly, 48 CFR parts 1816 and 1852 are proposed to be amended 
as follows:

0
1. The authority citation for parts 1816 and 1852 continues to read as 
follows:

    Authority:  51 U.S.C. 20113(a) and 48 CFR chapter 1.

PART 1816--TYPES OF CONTRACTS

0
2. Add section 1816.001 to read as follows:


1816.001  Definitions.

    As used in this part--
    ``Earned Award Fee'' means the payment of the full amount of an 
award fee evaluation period's score/rating.
    ``Unearned Award Fee'' means the difference between the available 
award fee pool amount for a given award fee evaluation period less the 
contractor's earned award fee amount for that same evaluation period.
* * * * *


1816.307  [Amended]

0
3. Amend section 1816.307 by removing paragraph (g)(1) in its entirety.
0
4. Revise section 1816.307-70, in paragraph (f), to read as follows:


1816.307-70  NASA contract clauses.

* * * * *
    (f) When FAR clause 52.216-7, Allowable Cost and Payment, is 
included in the contract, as prescribed at FAR 16.307(a), the 
contracting officer should include the clause at 1852.216-89, 
Assignment and Release Forms.
* * * * *
0
5. Amend section 1816.405-273 by revising paragraphs (b) and (c) to 
read as follows:


1816.405-273  Award fee evaluations.

* * * * *
    (b) End Item Contracts. On contracts, such as those for end item 
deliverables, where the true quality of contractor performance cannot 
be measured until the end of the contract, only the last evaluation is 
final. At that point, the total contract award fee pool is available, 
and the contractor's total performance is evaluated against the award 
fee plan to determine total earned award fee. In addition to the final 
evaluation, interim evaluations are done to monitor performance prior 
to contract completion, provide feedback to the contractor on the 
Government's assessment of the quality of its performance, and 
establish the basis for making interim award fee payments (see 
1816.405-276(a)). These interim evaluations and associated interim 
award fee payments are superseded by the fee determination made in the 
final evaluation at contract completion. However, if the final award 
fee adjectival rating is higher or lower than the average adjectival 
rating of all the interim award fee periods, or if the final award fee 
score is eight base percentage points higher or lower than the average 
award fee score of all interim award fee periods (e.g. 80% to 88%), 
then the Head of the Contracting Activity (HCA) or the Deputy Chief 
Acquisition Officer (if the HCA is the Fee Determination Official) 
shall review and concur in the final award fee determination. The 
Government will then pay the contractor, or the contractor will refund 
to the Government, the difference between the final award fee 
determination and the cumulative interim fee payments.
    (c) Control of evaluations. Interim and final evaluations may be 
used to provide past performance information during the source 
selection process in future acquisitions and should be marked and 
controlled as ``Source Selection Information--see FAR 3.104''. See FAR 
42.1503(h) regarding the requirements for releasing Source Selection 
Information included in the Contractor Performance Assessment Reporting 
System (CPARS).
* * * * *
0
6. Amend section 1816.405-276 by revising the last sentence of 
paragraph (b) to read as follows:


1816.405-276  Award fee payments and limitations.

* * * * *
    (b) * * * For an end item contract, the total amount of provisional 
payments in a period is limited to a percentage not to exceed 80 
percent of the prior interim period's evaluation score, except for the 
first evaluation period which is limited to 80 percent of the available 
award fee for that evaluation period.
* * * * *

PART 1852--SOLICITATION PROVISIONS AND CONTRACT CLAUSES

0
7. Amend section 1852.216-77 by revising the date of the clause and 
paragraph (c)(3). The revised text reads as follows:


1852.216-77  Award Fee for End Item Contracts.

* * * * *

[[Page 23669]]

    Award Fee for End Item Contracts (Date)
* * * * *
    (c)(1) * * *
    (3) Provisional award fee payments will [insert ``not'' if 
applicable] be made under this contract pending each interim 
evaluation. If applicable, provisional award fee payments will be made 
to the Contractor on a [insert the frequency of provisional payments 
(not more often than monthly) basis. The amount of award fee which will 
be provisionally paid in each evaluation period is limited to [Insert a 
percent not to exceed 80 percent] of the prior interim evaluation score 
(see [insert applicable cite]), except for the first evaluation period 
which is limited to [insert a percent not to exceed 80 percent] of the 
available award fee for that evaluation period. Provisional award fee 
payments made each evaluation period will be superseded by the interim 
award fee evaluation for that period. If provisional payments made 
exceed the interim evaluation score, the Contractor will either credit 
the next payment voucher for the amount of such overpayment or refund 
the difference to the Government, as directed by the Contracting 
Officer. If the Government determines that (i) the total amount of 
provisional fee payments will apparently substantially exceed the 
anticipated final evaluation score, or (ii) the prior interim 
evaluation is ``poor/unsatisfactory,'' the Contracting Officer will 
direct the suspension or reduction of the future payments and/or 
request a prompt refund of excess payments as appropriate. Written 
notification of the determination will be provided to the Contractor 
with a copy to the Deputy Chief Financial Officer (Finance).
* * * * *
0
8. Amend section 1852.216-89 by revising the date of the clause, and 
the first sentence of the paragraph to read as follows:


1852.216-89  Assignment and Release Forms.

* * * * *
Assignment and Release Forms ([Date])
    The Contractor shall use the following forms to fulfill the 
assignment and release requirements of FAR clause 52.216-7, Allowable 
Cost and Payment:
* * * * *
[FR Doc. 2016-09356 Filed 4-21-16; 8:45 am]
 BILLING CODE 7510-13-P