NASA Federal Acquisition Regulation Supplement: Contractor Financial Reporting of Property (2016-N024), 48726-48728 [2016-17559]
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48726
Federal Register / Vol. 81, No. 143 / Tuesday, July 26, 2016 / Proposed Rules
NATIONAL AERONAUTICS AND
SPACE ADMINISTRATION
48 CFR Parts 1845 and 1852
RIN 2700–AE33
NASA Federal Acquisition Regulation
Supplement: Contractor Financial
Reporting of Property (2016–N024)
National Aeronautics and
Space Administration.
ACTION: Proposed rule.
AGENCY:
NASA is proposing to amend
the NASA Federal Acquisition
Regulation Supplement (NFS) to add a
monthly reporting requirement for
contractors having custody of $10
million or more in NASA-owned
Property, Plant and Equipment (PP&E).
DATES: Interested parties should submit
comments to NASA at the address
below on or before September 26, 2016
to be considered in the formation of a
final rule.
ADDRESSES: Submit comments
identified by NFS Case 2016–N024,
using any of the following methods:
Æ Regulations.gov: https://
www.regulations.gov. Submit comments
via the Federal eRulemaking portal by
entering ‘‘NFS Case 2016–N024’’ under
the heading ‘‘Enter keyword or ID’’ and
selecting ‘‘Search.’’ Select the link
‘‘Submit a Comment’’ that corresponds
with ‘‘NFS Case 2016–N024.’’ Follow
the instructions provided at the ‘‘Submit
a Comment’’ screen. Please include your
name, company name (if any), and
‘‘NFS Case 2016–N024’’ on your
attached document.
Æ Email: andrew.orourke@nasa.gov.
Include NFS Case 2016–N024 in the
subject line of the message.
Æ Fax: (202) 358–3082.
Æ Mail: National Aeronautics and
Space Administration, Headquarters,
Office of Procurement, Contract and
Grant Policy Division, Attn: Andrew
O’Rourke, LP–011 (Suite 5L32), 300 E.
Street SW., Washington, DC 20546–
0001.
SUMMARY:
FOR FURTHER INFORMATION CONTACT:
rmajette on DSK2TPTVN1PROD with PROPOSALS
Andrew O’Rourke, NASA, Office of
Procurement, Contract and Grant Policy
Division, LP–011 (Suite 5L32); (202)
358–4560; email: andrew.orourke@
nasa.gov.
SUPPLEMENTARY INFORMATION:
I. Background
NASA is proposing to revise the NFS
to add a monthly reporting requirement
at 1852.245–73 for contracts in which
the contractor has custody of NASAowned PP&E valued at $10 million or
more to ensure contractor-held PP&E are
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more accurately represented in NASA
financial statements. In accordance with
the Statement of Federal Financial
Accounting Standard (SFFAS) No. 6,
Accounting for Property, Plant, and
Equipment, Federal agencies are—
• Required to record as property and
equipment all items that meet certain
characteristics, such as a useful life of
two (2) years or more; and
• Permitted to establish individual
capitalization thresholds and useful life
policies due to their diverse size and
uses of PP&E.
NASA Procedural Requirement (NPR)
9250.1, Property, Plant, and Equipment
and Operating Materials and Supplies,
which implements SSFAS No. 6,
requires contractors with custody of
NASA-owned PP&E to report financial
property information to NASA on a
yearly basis, and also requires
contractors with custody of $10 million
or more in NASA-owned PP&E to report
financial property information to NASA
on a monthly basis.
NFS subpart 1845.71 requires
contractors in possession of NASA
PP&E to submit annually a NASA Form
(NF) 1018, NASA Property in the
Custody of Contractors. NFS clause
1852.245–73, Financial Reporting of
NASA Property in the Custody of
Contractors, paragraph (a), states the
Contractor shall submit annually a
NASA Form (NF) 1018, NASA Property
in the Custody of Contractors, in
accordance with this clause, the
instructions on the form and NFS
subpart 1845.71, and any supplemental
instructions for the current reporting
period issued by NASA. Currently, if at
any time during performance of the
contract the amount of NASA property
in the custody of the contractor is equal
to or in excess of $10 million, the
contractor has received instructions
from the NASA contracting officer to
submit a monthly report.
In order to ensure that PP&E are being
presented fairly in the Agency’s
financial statements, independent
auditors recommended to NASA that
the NFS policy regarding property
financial reporting be revised to specify
that the supplemental instructions in
paragraph (a) of the clause specifically
includes the requirement that all
contractors having custody of NASA
PP&E with a value of $10 million or
more are required to report this
information on a monthly basis to
NASA.
II. Discussion
The following sections of the NFS are
being revised relative to PP&E reporting
requirements:
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Sfmt 4702
• NASA is proposing to update NFS
clause 1852.245–73 and the associated
prescription at NFS 1845.107–70
regarding the reporting of NASA-owned
and contractor-held PP&E that equals
$10 million or more on a monthly basis.
• NASA is proposing to update NFS
clause 1852.245–73 to add the cognizant
NASA Center Industrial Property Officer
to the distribution list for the hard copy
NF 1018.
• NASA is proposing to update NFS
clause 1852.245–73 to revise the annual
report submission date from October
15th to October 31st to allow contractors
additional time to develop and submit
this report.
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 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 proposed
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 affected NASA
contractors with custody of NASAowned PP&E valued at $10 million or
greater are primarily large businesses.
However, an initial regulatory flexibility
analysis has been performed and is
summarized as follows:
The objective of this rule is to add a
monthly reporting requirement for
contractors having custody of NASAowned PP&E valued at $10 million or
greater to ensure that contractor-held
PP&E are more accurately represented in
NASA financial statements in
accordance with the Statement of
Federal Financial Accounting Standard
(SFFAS) No. 6, Accounting for Property,
Plant, and Equipment and NASA
Procedural Requirement (NPR) 9250.1,
Property, Plant, and Equipment and
Operating Materials and Supplies.
The requirements under this proposed
rule would apply to any contract award
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Federal Register / Vol. 81, No. 143 / Tuesday, July 26, 2016 / Proposed Rules
(including contracts for supplies,
services, construction, and major
systems) that requires contractors to use
Government property. According to
NASA Property Records in Fiscal Year
(FY) 2015 there were 643 contracts that
required reporting NASA contractors
with custody of Government property to
report that property. Of the 643
contracts, approximately 20% or 129
contracts were with small business
contractors. Of the 643 contracts, 32
contracts had NASA-owned and
contractor-held PP&E with a value of
$10 Million or more and required
monthly reporting. Of those 32
contracts, only three were awarded to
small business contractors.
The rule contains information
collection requirements, however, this
rule does not impose additional
information collection requirements to
the paperwork burden previously
approved under OMB Control Number
2700–0017, titled NASA Property in the
Custody of Contractors and OMB
Control No. 9000–0075, titled
Government Furnished Property
Requirements. The impact of this
reporting requirement is minimal on
small entities based on FY 2015 NASA
property records that show only three
contractors with custody of NASA PP&E
valued at $10 million or more. No
alternatives were identified that would
meet the objectives of this proposed
rule.
NASA invites comments from small
business concerns and other interested
parties on the expected impact of this
proposed rule on small entities. NASA
will also consider comments from small
entities concerning the existing
regulations in subparts affected by this
proposed rule in accordance with 5
U.S.C. 610. Interested parties must
submit such comments separately and
should cite 5 U.S.C. 610 (NFS Case
2016–N024) in correspondence.
rmajette on DSK2TPTVN1PROD with PROPOSALS
V. Paperwork Reduction Act
The rule contains information
collection requirements that require the
approval of the Office of Management
and Budget (OMB) under the Paperwork
Reduction Act (44 U.S.C. chapter 35);
however, these changes to the NFS do
not impose additional information
collection requirements to the
paperwork burden previously approved
under OMB Control Number 2700–0017,
titled NASA Property in the Custody of
Contractors and OMB Control No. 9000–
0075, titled Government Furnished
Property Requirements.
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List of Subjects in 48 CFR Parts 1845
and 1852
Government procurement.
Manuel Quinones,
NASA FAR Supplement Manager.
Accordingly, 48 CFR parts 1845 and
1852 are proposed to be amended as
follows:
PART 1845—GOVERNMENT
PROPERTY
1. The authority citation for part 1845
is revised to read as follows:
■
Authority: 51 U.S.C. 20113(a) and 48 CFR
chapter 1.
2. Amend section 1845.107–70 by
revising paragraph (d) to read as
follows:
■
1845.107–70 NASA solicitation provisions
and contract clauses.
*
*
*
*
*
(d) The contracting officer shall insert
the clause at 1852.245–73, Financial
Reporting of NASA Property in the
Custody of Contractors, in cost
reimbursement solicitations and
contracts and in all contracts in which
the contractor has custody of NASA
owned-property with a value of $10
million or more, unless all property to
be provided is subject to the clause at
1852.245–71, Installation-Accountable
Government Property. Insert the clause
1852.245–73 in other types of
solicitations and contracts when it is
known at award that property will be
provided to the contractor or that the
contractor will acquire property title to
which will vest in the Government prior
to delivery.
*
*
*
*
*
PART 1852—SOLICITATION
PROVISIONS AND CONTRACT
CLAUSES
3. The authority citation for part 1852
continues to read as follows:
■
Authority: 51 U.S.C. 20113(a) and 48 CFR
chapter 1.
4. Amend section 1852.245–73 by—
a. Revising the date of the clause;
b. In paragraph (a), removing the
words ‘‘in accordance this clause’’ and
adding ‘‘in accordance with this clause’’
in its place; and
■ c. Revising paragraphs (b)(2) and (c).
The revised text reads as follows:
■
■
■
1852.245–73 Financial Reporting of NASA
Property in the Custody of Contractors.
*
*
*
*
*
Financial Reporting of NASA Property
in the Custody of Contractors (Date)
*
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*
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*
*
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*
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48727
(b)(1) * * *
(2) The Contractor shall mail the original
signed NF 1018 directly to the cognizant
NASA Center Industrial Property Officer and
a copy to the cognizant NASA Center Deputy
Chief Financial Officer, Finance, unless the
Contractor uses the NF 1018 Electronic
Submission System (NESS) for report
preparation and submission.
(c)(1) The annual reporting period shall be
from October 1 of each year through
September 30 of the following year. The
report shall be submitted in time to be
received by October 31st. The information
contained in these reports is entered into the
NASA accounting system to reflect current
asset values for agency financial statement
purposes. Therefore, it is essential that
required reports be received no later than
October 31st.
(2) Some activity may be estimated for the
month in which the report is submitted, if
necessary, to ensure the NF 1018 is received
when due. However, contractors’ procedures
must document the process for developing
these estimates based on planned activity
such as planned purchases or NASA Form
533 (NF 533) Contractor Financial
Management Report cost estimates. It should
be supported and documented by historical
experience or other corroborating evidence,
and be retained in accordance with FAR
Subpart 4.7, Contractor Records Retention.
Contractors shall validate the reasonableness
of the estimates and associated methodology
by comparing them to the actual activity once
that data is available, and adjust them
accordingly. In addition, differences between
the estimated cost and actual cost must be
adjusted during the next reporting period.
Contractors shall have formal policies and
procedures, which address the validation of
NF 1018 data, including data from
subcontractors, and the identification and
timely reporting of errors. The objective of
this validation is to ensure that information
reported is accurate and in compliance with
the NASA FAR Supplement. If errors are
discovered on NF 1018 after submission, the
contractor shall contact the cognizant NASA
Center Industrial Property Officer (IPO)
within 30 days after discovery of the error to
discuss corrective action.
(3) In addition to an annual report, if at any
time during performance of the contract,
NASA-owned property in the custody of the
contractor has a value of $10 million or more,
the contractor shall also submit a report no
later than the 21st of each month in
accordance with the requirements of
paragraph (c)(2) of this clause.
(4) The Contracting Officer may, in NASA’s
interest, withhold payment until a reserve
not exceeding $25,000 or 5 percent of the
amount of the contract, whichever is less, has
been set aside, if the Contractor fails to
submit annual NF 1018 reports in accordance
with NFS subpart 1845.71, any monthly
report in accordance with (c)(3) of this
clause, and any supplemental instructions for
the current reporting period issued by NASA.
Such reserve shall be withheld until the
Contracting Officer has determined that
NASA has received the required reports. The
withholding of any amount or the subsequent
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48728
Federal Register / Vol. 81, No. 143 / Tuesday, July 26, 2016 / Proposed Rules
payment thereof shall not be construed as a
waiver of any Government right.
*
*
*
*
*
[FR Doc. 2016–17559 Filed 7–25–16; 8:45 am]
BILLING CODE 7510–13–P
DEPARTMENT OF COMMERCE
National Oceanic and Atmospheric
Administration
50 CFR Part 622
[Docket No. 160613514–6514–01]
RIN 0648–BG12
Fisheries of the Caribbean, Gulf of
Mexico, and South Atlantic; Reef Fish
Fishery of the Gulf of Mexico; Red
Grouper Management Measures
National Marine Fisheries
Service (NMFS), National Oceanic and
Atmospheric Administration (NOAA),
Commerce.
ACTION: Proposed rule; request for
comments.
AGENCY:
NMFS proposes to implement
management measures described in a
framework action to the Fishery
Management Plan for the Reef Fish
Resources of the Gulf of Mexico (FMP),
as prepared by the Gulf of Mexico
Fishery Management Council (Council).
If implemented, this action would revise
the commercial quota and annual catch
limit (ACL) and the recreational annual
catch target (ACT) and ACL for red
grouper in the Gulf of Mexico (Gulf)
exclusive economic zone. The purpose
of this proposed rule is to adjust the
allowable red grouper harvest to achieve
optimum yield based upon an updated
Gulf red grouper stock assessment.
DATES: Written comments must be
received on or before August 25, 2016.
ADDRESSES: You may submit comments
on the proposed rule, identified by
‘‘NOAA–NMFS–2016–0077’’ by either
of the following methods:
• Electronic Submission: Submit all
electronic public comments via the
Federal e-Rulemaking Portal. Go to
www.regulations.gov/
#!docketDetail;D=NOAA-NMFS-20160077, click the ‘‘Comment Now!’’ icon,
complete the required fields, and enter
or attach your comments.
• Mail: Submit written comments to
Richard Malinowski, Southeast Regional
Office, NMFS, 263 13th Avenue South,
St. Petersburg, FL 33701.
Instructions: 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 by NMFS. All comments
rmajette on DSK2TPTVN1PROD with PROPOSALS
SUMMARY:
VerDate Sep<11>2014
13:47 Jul 25, 2016
Jkt 238001
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.),
confidential business information, or
otherwise sensitive information
submitted voluntarily by the sender will
be publicly accessible. NMFS will
accept anonymous comments (enter
‘‘N/A’’ in the required fields if you wish
to remain anonymous).
Electronic copies of the framework
action, which includes an
environmental assessment, a regulatory
impact review, and a Regulatory
Flexibility Act (RFA) analysis may be
obtained from the Southeast Regional
Office Web site at https://
sero.nmfs.noaa.gov/sustainable_
fisheries/gulf_fisheries/reef_fish/2016/
red_grouper_allowable_harvest/
index.html.
FOR FURTHER INFORMATION CONTACT:
Richard Malinowski, Southeast Regional
Office, NMFS, telephone: 727–824–
5305, email: rich.malinowski@noaa.gov.
SUPPLEMENTARY INFORMATION: The Gulf
reef fish fishery, which includes red
grouper, is managed under the FMP.
The FMP was prepared by the Council
and is implemented through regulations
at 50 CFR part 622 under the authority
of the Magnuson-Stevens Fishery
Conservation and Management Act
(Magnuson-Stevens Act).
Background
The Magnuson-Stevens Act requires
NMFS and regional fishery management
councils to achieve on a continuing
basis the optimum yield from federally
managed fish stocks. This mandate is
intended to ensure that fishery
resources are managed for the greatest
overall benefit to the nation, particularly
with respect to providing food
production and recreational
opportunities, while also protecting
marine ecosystems.
The 2015 Southeast Data Assessment
Review (SEDAR 42) for Gulf red grouper
determined that the stock is not
overfished or undergoing overfishing
based upon the assessment’s terminal
year of 2013. As a result of SEDAR 42,
the Council’s Science and Statistical
Committee (SSC) recommended
increasing the Gulf red grouper
overfishing limit (OFL) and acceptable
biological catch (ABC). The SSC
provided two alternative OFL and ABC
recommendations: (1) As a declining
yield stream for the 2016 through 2020
fishing years; and (2) as a constant
catch. The Council chose the constant
catch OFL and ABC (14.16 million lb
(6.42 million kg) and 13.92 million lb
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Frm 00005
Fmt 4702
Sfmt 4702
(6.31 million kg), respectively), but
chose a more conservative approach in
setting the ACLs and ACTs, basing these
catch levels on the minimum ABC of
10.77 million lb (4.89 million kg) from
the declining yield stream. The
Council’s decision was based on
testimony from the general public and
commercial fishermen, who suggested
the Council use caution when setting
the catch levels. Thus, through this
framework action, the Council is
increasing the red grouper commercial
and recreational ACTs and ACLs. The
commercial ACT is codified as the
commercial quota.
Management Measures Contained in
This Proposed Rule
The proposed rule would revise the
commercial quota and ACL, and the
recreational ACT and ACL for Gulf red
grouper. All weights described in this
proposed rule are in gutted weight.
Commercial and Recreational Catch
Limits
The current red grouper commercial
quota and ACL, and recreational ACT
and ACL were implemented through
Amendment 32 to the FMP (77 FR 6988,
February 10, 2012). The current
commercial quota is 5,720,000 lb
(2,590,000 kg) and the commercial ACL
is 6,030,000 lb (2,735,000 kg). The
current recreational ACT is 1,730,000 lb
(785,000 kg) and the recreational ACL is
1,900,000 lb (862,000 kg).
This proposed rule would increase
catch levels for both sectors. The
commercial quota would be revised to
7,780,000 lb (3,528,949 kg) and the
commercial ACL would be revised to
8,190,000 lb (3,714,922 kg).
Additionally, the recreational ACT
would be revised to 2,370,000 lb
(1,075,014 kg) and the recreational ACL
to 2,580,000 lb (1,170,268 kg).
For Gulf red grouper, 76 percent of
the stock ACL is allocated to the
commercial sector and 24 percent of the
ACL is allocated to the recreational
sector. The commercial quota is set by
applying a 5 percent buffer to the
commercial ACL to account for
management uncertainty and the
recreational ACT is set by applying a
buffer to the recreational ACL of 8
percent to account for management
uncertainty.
The revised commercial quota in this
proposed rule would provide the
commercial sector additional harvest
opportunities as a result of the increased
commercial quota beginning in 2016.
The increase in the recreational ACL is
expected to allow the recreational sector
to remain open for the entire fishing
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]]>Agencies
[Federal Register Volume 81, Number 143 (Tuesday, July 26, 2016)]
[Proposed Rules]
[Pages 48726-48728]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-17559]
[[Page 48726]]
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NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
48 CFR Parts 1845 and 1852
RIN 2700-AE33
NASA Federal Acquisition Regulation Supplement: Contractor
Financial Reporting of Property (2016-N024)
AGENCY: National Aeronautics and Space Administration.
ACTION: Proposed rule.
-----------------------------------------------------------------------
SUMMARY: NASA is proposing to amend the NASA Federal Acquisition
Regulation Supplement (NFS) to add a monthly reporting requirement for
contractors having custody of $10 million or more in NASA-owned
Property, Plant and Equipment (PP&E).
DATES: Interested parties should submit comments to NASA at the address
below on or before September 26, 2016 to be considered in the formation
of a final rule.
ADDRESSES: Submit comments identified by NFS Case 2016-N024, using any
of the following methods:
[cir] Regulations.gov: https://www.regulations.gov. Submit comments
via the Federal eRulemaking portal by entering ``NFS Case 2016-N024''
under the heading ``Enter keyword or ID'' and selecting ``Search.''
Select the link ``Submit a Comment'' that corresponds with ``NFS Case
2016-N024.'' Follow the instructions provided at the ``Submit a
Comment'' screen. Please include your name, company name (if any), and
``NFS Case 2016-N024'' on your attached document.
[cir] Email: andrew.orourke@nasa.gov. Include NFS Case 2016-N024 in
the subject line of the message.
[cir] Fax: (202) 358-3082.
[cir] Mail: National Aeronautics and Space Administration,
Headquarters, Office of Procurement, Contract and Grant Policy
Division, Attn: Andrew O'Rourke, LP-011 (Suite 5L32), 300 E. Street
SW., Washington, DC 20546-0001.
FOR FURTHER INFORMATION CONTACT: Andrew O'Rourke, NASA, Office of
Procurement, Contract and Grant Policy Division, LP-011 (Suite 5L32);
(202) 358-4560; email: andrew.orourke@nasa.gov.
SUPPLEMENTARY INFORMATION:
I. Background
NASA is proposing to revise the NFS to add a monthly reporting
requirement at 1852.245-73 for contracts in which the contractor has
custody of NASA-owned PP&E valued at $10 million or more to ensure
contractor-held PP&E are more accurately represented in NASA financial
statements. In accordance with the Statement of Federal Financial
Accounting Standard (SFFAS) No. 6, Accounting for Property, Plant, and
Equipment, Federal agencies are--
Required to record as property and equipment all items
that meet certain characteristics, such as a useful life of two (2)
years or more; and
Permitted to establish individual capitalization
thresholds and useful life policies due to their diverse size and uses
of PP&E.
NASA Procedural Requirement (NPR) 9250.1, Property, Plant, and
Equipment and Operating Materials and Supplies, which implements SSFAS
No. 6, requires contractors with custody of NASA-owned PP&E to report
financial property information to NASA on a yearly basis, and also
requires contractors with custody of $10 million or more in NASA-owned
PP&E to report financial property information to NASA on a monthly
basis.
NFS subpart 1845.71 requires contractors in possession of NASA PP&E
to submit annually a NASA Form (NF) 1018, NASA Property in the Custody
of Contractors. NFS clause 1852.245-73, Financial Reporting of NASA
Property in the Custody of Contractors, paragraph (a), states the
Contractor shall submit annually a NASA Form (NF) 1018, NASA Property
in the Custody of Contractors, in accordance with this clause, the
instructions on the form and NFS subpart 1845.71, and any supplemental
instructions for the current reporting period issued by NASA.
Currently, if at any time during performance of the contract the amount
of NASA property in the custody of the contractor is equal to or in
excess of $10 million, the contractor has received instructions from
the NASA contracting officer to submit a monthly report.
In order to ensure that PP&E are being presented fairly in the
Agency's financial statements, independent auditors recommended to NASA
that the NFS policy regarding property financial reporting be revised
to specify that the supplemental instructions in paragraph (a) of the
clause specifically includes the requirement that all contractors
having custody of NASA PP&E with a value of $10 million or more are
required to report this information on a monthly basis to NASA.
II. Discussion
The following sections of the NFS are being revised relative to
PP&E reporting requirements:
NASA is proposing to update NFS clause 1852.245-73 and the
associated prescription at NFS 1845.107-70 regarding the reporting of
NASA-owned and contractor-held PP&E that equals $10 million or more on
a monthly basis.
NASA is proposing to update NFS clause 1852.245-73 to add
the cognizant NASA Center Industrial Property Officer to the
distribution list for the hard copy NF 1018.
NASA is proposing to update NFS clause 1852.245-73 to
revise the annual report submission date from October 15th to October
31st to allow contractors additional time to develop and submit this
report.
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 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 proposed 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 affected NASA contractors with custody of NASA-owned PP&E
valued at $10 million or greater are primarily large businesses.
However, an initial regulatory flexibility analysis has been performed
and is summarized as follows:
The objective of this rule is to add a monthly reporting
requirement for contractors having custody of NASA-owned PP&E valued at
$10 million or greater to ensure that contractor-held PP&E are more
accurately represented in NASA financial statements in accordance with
the Statement of Federal Financial Accounting Standard (SFFAS) No. 6,
Accounting for Property, Plant, and Equipment and NASA Procedural
Requirement (NPR) 9250.1, Property, Plant, and Equipment and Operating
Materials and Supplies.
The requirements under this proposed rule would apply to any
contract award
[[Page 48727]]
(including contracts for supplies, services, construction, and major
systems) that requires contractors to use Government property.
According to NASA Property Records in Fiscal Year (FY) 2015 there were
643 contracts that required reporting NASA contractors with custody of
Government property to report that property. Of the 643 contracts,
approximately 20% or 129 contracts were with small business
contractors. Of the 643 contracts, 32 contracts had NASA-owned and
contractor-held PP&E with a value of $10 Million or more and required
monthly reporting. Of those 32 contracts, only three were awarded to
small business contractors.
The rule contains information collection requirements, however,
this rule does not impose additional information collection
requirements to the paperwork burden previously approved under OMB
Control Number 2700-0017, titled NASA Property in the Custody of
Contractors and OMB Control No. 9000-0075, titled Government Furnished
Property Requirements. The impact of this reporting requirement is
minimal on small entities based on FY 2015 NASA property records that
show only three contractors with custody of NASA PP&E valued at $10
million or more. No alternatives were identified that would meet the
objectives of this proposed rule.
NASA invites comments from small business concerns and other
interested parties on the expected impact of this proposed rule on
small entities. NASA will also consider comments from small entities
concerning the existing regulations in subparts affected by this
proposed rule in accordance with 5 U.S.C. 610. Interested parties must
submit such comments separately and should cite 5 U.S.C. 610 (NFS Case
2016-N024) in correspondence.
V. Paperwork Reduction Act
The rule contains information collection requirements that require
the approval of the Office of Management and Budget (OMB) under the
Paperwork Reduction Act (44 U.S.C. chapter 35); however, these changes
to the NFS do not impose additional information collection requirements
to the paperwork burden previously approved under OMB Control Number
2700-0017, titled NASA Property in the Custody of Contractors and OMB
Control No. 9000-0075, titled Government Furnished Property
Requirements.
List of Subjects in 48 CFR Parts 1845 and 1852
Government procurement.
Manuel Quinones,
NASA FAR Supplement Manager.
Accordingly, 48 CFR parts 1845 and 1852 are proposed to be amended
as follows:
PART 1845--GOVERNMENT PROPERTY
0
1. The authority citation for part 1845 is revised to read as follows:
Authority: 51 U.S.C. 20113(a) and 48 CFR chapter 1.
0
2. Amend section 1845.107-70 by revising paragraph (d) to read as
follows:
1845.107-70 NASA solicitation provisions and contract clauses.
* * * * *
(d) The contracting officer shall insert the clause at 1852.245-73,
Financial Reporting of NASA Property in the Custody of Contractors, in
cost reimbursement solicitations and contracts and in all contracts in
which the contractor has custody of NASA owned-property with a value of
$10 million or more, unless all property to be provided is subject to
the clause at 1852.245-71, Installation-Accountable Government
Property. Insert the clause 1852.245-73 in other types of solicitations
and contracts when it is known at award that property will be provided
to the contractor or that the contractor will acquire property title to
which will vest in the Government prior to delivery.
* * * * *
PART 1852--SOLICITATION PROVISIONS AND CONTRACT CLAUSES
0
3. The authority citation for part 1852 continues to read as follows:
Authority: 51 U.S.C. 20113(a) and 48 CFR chapter 1.
0
4. Amend section 1852.245-73 by--
0
a. Revising the date of the clause;
0
b. In paragraph (a), removing the words ``in accordance this clause''
and adding ``in accordance with this clause'' in its place; and
0
c. Revising paragraphs (b)(2) and (c).
The revised text reads as follows:
1852.245-73 Financial Reporting of NASA Property in the Custody of
Contractors.
* * * * *
Financial Reporting of NASA Property in the Custody of Contractors
(Date)
* * * * *
(b)(1) * * *
(2) The Contractor shall mail the original signed NF 1018
directly to the cognizant NASA Center Industrial Property Officer
and a copy to the cognizant NASA Center Deputy Chief Financial
Officer, Finance, unless the Contractor uses the NF 1018 Electronic
Submission System (NESS) for report preparation and submission.
(c)(1) The annual reporting period shall be from October 1 of
each year through September 30 of the following year. The report
shall be submitted in time to be received by October 31st. The
information contained in these reports is entered into the NASA
accounting system to reflect current asset values for agency
financial statement purposes. Therefore, it is essential that
required reports be received no later than October 31st.
(2) Some activity may be estimated for the month in which the
report is submitted, if necessary, to ensure the NF 1018 is received
when due. However, contractors' procedures must document the process
for developing these estimates based on planned activity such as
planned purchases or NASA Form 533 (NF 533) Contractor Financial
Management Report cost estimates. It should be supported and
documented by historical experience or other corroborating evidence,
and be retained in accordance with FAR Subpart 4.7, Contractor
Records Retention. Contractors shall validate the reasonableness of
the estimates and associated methodology by comparing them to the
actual activity once that data is available, and adjust them
accordingly. In addition, differences between the estimated cost and
actual cost must be adjusted during the next reporting period.
Contractors shall have formal policies and procedures, which address
the validation of NF 1018 data, including data from subcontractors,
and the identification and timely reporting of errors. The objective
of this validation is to ensure that information reported is
accurate and in compliance with the NASA FAR Supplement. If errors
are discovered on NF 1018 after submission, the contractor shall
contact the cognizant NASA Center Industrial Property Officer (IPO)
within 30 days after discovery of the error to discuss corrective
action.
(3) In addition to an annual report, if at any time during
performance of the contract, NASA-owned property in the custody of
the contractor has a value of $10 million or more, the contractor
shall also submit a report no later than the 21st of each month in
accordance with the requirements of paragraph (c)(2) of this clause.
(4) The Contracting Officer may, in NASA's interest, withhold
payment until a reserve not exceeding $25,000 or 5 percent of the
amount of the contract, whichever is less, has been set aside, if
the Contractor fails to submit annual NF 1018 reports in accordance
with NFS subpart 1845.71, any monthly report in accordance with
(c)(3) of this clause, and any supplemental instructions for the
current reporting period issued by NASA. Such reserve shall be
withheld until the Contracting Officer has determined that NASA has
received the required reports. The withholding of any amount or the
subsequent
[[Page 48728]]
payment thereof shall not be construed as a waiver of any Government
right.
* * * * *
[FR Doc. 2016-17559 Filed 7-25-16; 8:45 am]
BILLING CODE 7510-13-P
