Rex T. Elliott, CPCM GSFC Program Procurement Division July 15, 2004

1. NEW PROCUREMENT ORIENTATION Rex T. Elliott, CPCM GSFC Program Procurement Division July 15, 2004

2. Contents • Contract Definition and Elements • Grant and Cooperative Agreement Overview • Laws/regulations/policies • Acquisition Team • Procurement Request and Package • Statements of work/specifications • Types of Contracts • Preaward Acquisition Process • Contract Administration • Summary • Resources

3. Contracts • What is a Contract? • A Contract is a mutually binding legal relationship obligating the seller to furnish supplies or services (including construction), and the buyer to pay for them. • Procedures are described in the Federal Acquisition Regulation (FAR) and the NASA FAR Supplement • http://ec.msfc.nasa.gov/hq/library/v-reg.htm

4. Contract Elements • Offer & Acceptance • Mutual Consideration • Clear Terms • Competent Parties • Lawful Purpose

5. Grants What is a Grant? A legal instrument used to reflect a relationship between NASA and a recipient whenever the principal purpose is the transfer of anything of value to the recipient to accomplish a public purpose of support or stimulation authorized by Federal statute. Grants are a method of Financial Assistance for a given purpose or goal. No deliverables.

6. Cooperative Agreements What is a Cooperative Agreement? A legal instrument used to reflect a relationship between NASA and a recipient whenever the principal purpose is the transfer of anything of value to the recipient to accomplish a public purpose of support or stimulation authorized by Federal statute. + Also, substantial involvement is anticipated between NASA and the recipient during performance of the contemplated activity.

7. Cooperative Agreements What is Substantial Involvement? Involves an active NASA role in collaborative relations: (1) Access to a NASA equipment or sharing NASA facilities and personnel. Ex: A university investigator could work for a substantial amount of time at a NASA Center, a NASA investigator could work at a university. (2) The project, conducted as proposed, would not be possible without extensive NASA/recipient technical collaboration;

8. Defining Differences Grants are distinguished from cooperative agreements in that substantial involvement is not expected between NASA and the recipient when carrying out the activity. Grants are distinguished from contracts in that grants provide financial assistance to the recipient to conduct a fairly autonomous program; contracts entail acquisition. Cooperative Agreements are distinguished from contracts in that NASA collaborates to further an investigation, but does not acquire direct benefit from the research.

9. Grants and CA’s Principal Purpose Test Contract: To acquire, for NASA's direct use or benefit, a well­defined, specific effort clearly required for the accomplishment of a scheduled NASA mission or project. Grant: The transfer of anything of value to the recipient to accomplish a public purpose of support or stimulation authorized by Federal statute. CA: Same as a Grant, but includes substantial involvement by NASA Ask Yourself….What is the Principal Purpose of this effort?

10. Grant Types • Four primary types of grants: • Research • Education • Training • Facilities

11. Procurement Laws/Regulations/Policies • Armed Services Procurement Act of 1947 • Competition in Contracting Act of 1985 • Federal Acquisition Regulation (FAR) • NASA FAR Supplement • NASA Procurement Circulars/Notices • Goddard Procedures & Guidelines (GPGs/Work Instructions • GSFC Procurement Circulars

12. Acquisition Team • Customer/Procurement Request Initiator • Contracting Officer/Contract Specialist • Resource Analyst • Attorney/Advisor • Quality Assurance Representative • Contracting Officer’s Technical Representative (COTR)

13. Procurement Request • SAP Purchase Requisition Form used for purchases over $2500 and administrative actions such as funding, option exercise, task orders, and change orders • Commitment of Funds by R&A of PR • Obligation of Funds by Contracting Officer • Planning Procurement Requests

14. PR Package (Competitive Procurement) • Performance Work Statement/specifications • Market Research • In-House Cost Estimate • Funding Profile • Source List • Initiators Acquisition Checklist (GSFC 23-59) • Security Requirements • Government Property • Evaluation Criteria • Contract Type Indicator • Procurement Library Info • NF 1707 Certificate • SUNS Certificate • Risk Management Planning

15. PR Package (Non-Competitive) • Performance Work Statement/specifications • Market Research • In-House Cost Estimate • Funding Profile • Source • Initiators Acquisition Checklist (GSFC 23-59) • Security Requirements • Government Property • Justification for Other than Full & Open Competition • Contract Type Indicator • NF 1707 Certificate • SUNS Certificate • Risk Management Planning

16. Stating Requirements • Statement of Work (SOW)/Specifications • Function—describes a broad need • Performance—how the item must work • Essential physical characteristics—states required attributes • Defines Requirements to enable and encourage vendors to supply commercial items or nondevelopmental items

17. SOW/Specifications • Do • Write functional or performance specifications • Use active verbs and clear, concise sentences • Spell out acronyms or abbreviations the first time used • Keep technical jargon to a minimum • Use “shall” and “will” appropriately • Do Not • Use design or level-of-effort specifications inappropriately • Include proprietary or restrictive information • “Gold plate” your requirement • Create or continue personal services arrangements

18. Fixed Price Contractor guarantees performance of the work as a condition of being paid Price is fixed at the outset or a formula is established to determine it later Provides for a lower cost risk to the Government with higher risk to the Contractor Cost Reimbursement Contractor uses “best efforts” to perform work as a condition for being paid costs plus established fee Contains estimated cost that Contractor exceeds at its own risk Provides for a higher cost risk to the Government with lower risk on the Contractor Types of Contracts

19. Fixed Price Contracts • Firm-fixed-price (FFP) • Fixed-price incentive (FPI) • Fixed-price with economic price adjustment • Fixed-price with prospective or retroactive price redetermination • Fixed-price award fee (FPAF)

20. Cost Reimbursement Contracts • Cost No Fee • Cost Sharing (CS) • Cost-plus-fixed-fee (CPFF) • Cost-plus-incentive-fee (CPIF) • Cost-plus-award-fee (CPAF)

21. Other Contract Types • Indefinite-quantity • Requirements • Definite-Quantity • Time & Materials • Labor Hours

22. Preaward Acquisition Process • Acquisition Planning • Preparation of procurement request and package • Synopsize (advertise) the requirement • Develop & issue draft solicitation, address comments, and finalize solicitation • Issue Solicitation (IFP, RFP, RFO) • Bid/Proposal/Offer Receipt • Technical/cost/business evaluation • Negotiations/discussions, if applicable • Contract Award

23. Contract Administration • Goal: To receive supplies and services on time and in accordance with the Statement of Work, specifications, and other contract terms and conditions

24. Contract Administration Activities • Post award orientation • Monitor technical/schedule/cost performance • Inspection • Contact Modifications • Unilateral (funding, option exercise, urgent change orders, etc.) • Bilateral (change order settlement, delivery schedule extension, changes to contract terms, etc.) • Delivery & Acceptance • Payment • Contract Closeout

25. Internet Resources • NASA Grant and Cooperative Agreement Handbook (NPG 5800.1) • http://ec.msfc.nasa.gov/hq/grcover.htm • FAR and NASA FAR Supplement • http://procurement.nasa.gov/cgi-bin/NAIS/nasa_ref.cgi • Procurement Library • http://ec.msfc.nasa.gov/hq/library/library.html • Virtual Procurement Office • http://nais.msfc.nasa.gov/VPO/images/vpokb.gif • NASA Research Opportunities Online (all programs) • http://www.nasa.gov/research.html • Business Opportunities with NASA • http://ec.msfc.nasa.gov/hq/common/biz.html

26. Backup Charts

27. Grant Types Research Grant shall be used to to accomplish a NASA objective: 1) Through stimulating or supporting the acquisition of knowledge or understanding of the subject or phenomena under study, 2) or attempting to determine and exploit the potential of scientific discoveries or improvements in technology, materials, processes, methods, devices, or techniques and advance the state of the art. 3) The recipient is responsible for the conduct of research, and exercises judgment and original thought toward attaining the scientific goals within broad parameters of the research areas proposed and the resources provided.

28. Grant Types Education Grant is an agreement that provides funds to an educational institution or other nonprofit organizations within one or more of the following areas: 1) Capturing student interest and/or improving student performance in science, mathematics, technology, or related fields; 2) Enhancing the skill, knowledge, or ability of teachers or faculty members in science, mathematics, or technology; 3) Supporting national educational reform movements; 4) Conducting pilot programs or research to increase participation and/or to enhance performance in science, mathematics, or technology education at all levels; and 5) Developing instructional materials (e.g., teacher guides, printed publications, computer software, and videotapes) or networked information services for education.

29. Grant Types Training Grant is an agreement that provides funds primarily for scholarships, fellowships, or stipends to students, teachers, and/or faculty. 1) Awarded to colleges, universities, or other non-profit organizations; not to individual students, teachers, or faculty members. 2) Institution selects participants. 3) Any participant receiving support under a NASA training grant may not concurrently hold another Federal fellowship or traineeship. 4) The use of training grant funds to acquire equipment, land, etc.

30. Grant Types Facilities Grant is used to provide for the acquisition, construction, use, maintenance, and disposition of facilities. Facilities, as used herein, means property used for production, maintenance, research, development, or testing. Approval by the Associate Administrator of Procurement is required. It is unlikely an award will be approved unless specifically authorized by Congress. A review by legal counsel to assure legal sufficiency is also required.

31. Research Program Areas • NASA Strategic Plan (http://www.hq.nasa.gov/office/codez/plans/pl2000.pdf) • Space Science (Code S) • How did the universe, galaxies, stars and planets form and evolve? • How can our exploration of the universe and our solar system revolutionize our understanding of physics, chemistry and biology? • Does life in any form, however simple or complex, carbon-based or other, exist elsewhere than on planet Earth? • Earth Science (Code Y) • How can we utilize the knowledge of the sun, Earth and other planetary bodies to develop predictive environmental, climatic, natural disaster and natural resource models to help ensure sustainable development and improve the quality of life on Earth?

32. Research Program Areas(continued) • Biological & Physical Research (Code U) • What is the fundamental role of gravity and cosmic radiation in vital biological, physical and chemical systems in space, on other planetary bodies, and on Earth, and how do we apply this fundamental knowledge to the establishment of permanent human presence in space to improve life on Earth? • Aeronautics and Space Transportation Technology (Code R) • How do we enable revolutionary technological advances that provide air and space travel for anyone, anytime, anywhere more safely, more affordably and with less impact on the environment and improve business opportunities and global security?

33. Obtaining Research Proposals • NASA Research Announcement (NRA) • Solicits research proposals in program areas of interest to NASA • Described in NASA FAR Supplement Part 1835 • May result in award of grant, cooperative agreement or contract • Announcement of Opportunity (AO) • Solicits a scientific investigation, historically mission related, procured by and delivered to NASA • Described in NASA FAR Supplement 1872 • Envisions award of contract(s) • Cooperative Agreement Notice (CAN) • Used to solicit commercial firms (NPG 5800.1, Section D) or non-profit and educational institutions (NPG 5800.1, Sections A & B) • Focuses on technology transfer, commercial development, usually requiring recipient cost sharing (for commercial firms) • Envisions award of a cooperative agreement

34. Obtaining Research Proposals(continued) • Request for Proposal (RFP) • Procurement of research for the direct benefit of NASA • Governed by the Federal Acquisition Regulation (FAR) and the NASA FAR Supplement • Results in the award of contract(s) with specified requirements and/or deliverables • Unsolicited Proposals • Initiated and submitted at the discretion of the proposer • Subject to peer review, programmatic priorities, funding constraints • May result in award of grant, cooperative agreement or contract • Procedures and requirements are on the Internet: • (http://ec.msfc.nasa.gov/hq/library/unSol-Prop.html)

35. Announcements Other Announcements Broad Agency Announcements NASA Research Announcement Cooperative Agreement Notice Announcement of Opportunity Grant Contract Cooperative Agreement

36. NRA Proposal Evaluation • Evaluation Factors (unless otherwise specified) • Relevance to NASA's objectives, • Intrinsic merit, and • Cost • Peer Review • Scientific review by discipline specialists in the area of the proposal • May be in-house, external, or combination (with due regard for conflict-of-interest and protection of proposal information) • Selection Decision • NASA program representative serves as the selecting official in determining whether to fund proposals

37. Project Management • Recipients of NASA research awards largely manage their own research projects with minimal oversight by the Agency. • An Award is monitored by the NASA Technical Officer or the Contract Officer’s Technical Representative, who serves as an official resource to the NASA Grants or Contracting Officer. • NASA sees itself as a partner with the science, engineering, and educational communities in making its programs relevant and productive.

38. New Awards NRA Drafting Guide START OF PROCESS Release Solicitation On-line Announce Solicitation via email Update Proposers Mailing Lists CBD Synopsis NRA Development Formulate Research Topics NPG-7120.5Certification Develop Solicitation Review & Approval Begin RecruitingMail/Panel Reviewers Recruit Panel Chairpersons Start Panel Set-up Based on NOIs Check for Non- Disclosure Agreement Forms on File Receive/Process Notices of Intent (NOIs) Proposal Processing Receive Proposals Sort Proposals & Finalize Panel Composition Distribute Proposal Packages to Mail/ Panel Reviewers Scientific Peer Review Meeting Held When applicable NASA Sol. Manager Recommendations to Source Selection Authority Reviewers Submit Individual Reviews Proposal Scores Summarized Peer Panel Meetings NASA Source Selection Decision Completed Award Packages sent to Procurement Selection Announcement On-going Administration Award Processing Grants Cooperative Agreements Contracts Procurement Office Negotiations Special Steps for HQ NRA Process Overview Metrics See Chapter 5

39. Grant and Co-Operative Agreement Process Overview Unsolicited (NFS) Selection Award Package Hand Off Admin Grant Office Center/HQ (HNBK) Proposals Award (NFS) • Solicitation • (NFS) • NRA • CAN • BAA • AO • Choice of Award Instrument (HNBK) • Contract, Grant, Cooperative Agreement, or Contract? Performance By Recipient Progress Reports Technical Office (Center, or HQ) • Technical Office (Enterprise) • S, Y, U, M, • R (LaRC, GRC, ARC) Functional Oversight As Needed (HQ/Center) Office of Naval Research (ONR) Delegation As Needed

40. Different Types of Solicitations CAN Cooperative Agreement Notice (NFS 1274) NRA NASA Research Announcement (NFS 1835.016) BAA Broad Agency Announcement (NFS 1835.016) AO Announcement of Opportunity (NFS 1872) Unsolicited proposal (NFS 1815.6) (NFS 1872) Ideas which contribute to broad objectives. Example: Microgravity Flight Research Opportunities for ISS Advancing state of the art or increase knowledge of understanding. Example: Fundamental Tech for Bimolecular Sensors Research interest in a NASA program Example: FUSE Guest Investigator Program Relationship between NASA and a recipient, not possible without collaboration, substantial NASA involvement anticipated. Example: X-33 Any of the previous AO tend to be large detailed documents with specific objectives NRA tend to be short documents BAA tend to be large detailed documents with broad objectives Usually result in a single award (Co-Op Agreement). Usually result in multiple awards, source of most Grants. Usually result in multiple awards. Usually result in multiple awards.

41. NASA FY 2003 Research Obligations to Educationals and Non-Profits