NASA Procedures and Guidelines

This Document is Obsolete and Is No Longer Used.
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NPR 9060.1A

Eff. Date: May 02, 2016

Cancellation Date:

Accrual Accounting - Revenues, Expenses, and Program Costs

| TOC | Preface | Chapter1 | Chapter2 | Chapter3 | AppendixA | AppendixB | AppendixC | AppendixD | AppendixE | ALL |

Appendix D. Procurement Instrument, Description, and Accrual Recognition

The table below provides procurement instruments, descriptions, and guidance on when to record accruals for each procurement instrument.

Description of Procurement Instruments	Accrual Recognition
Cost Type (Cost-Reimbursement and Incentive) Cost-reimbursement types of contracts provide for payment of allowable incurred costs, to the extent prescribed in the contract. The cost-plus-incentive-fee contract is a cost-reimbursement contract that provides for the initially negotiated fee to be adjusted later by a formula based on the relationship of total allowable costs to total target costs. Appropriate for services or development and test programs. A cost-plus-award-fee contract is a cost-reimbursement contract that provides for a fee consisting of: (1) a base amount fixed at inception of the contract, if applicable and at the discretion of the Contracting Officer, and (2) an award amount that the contractor may earn in whole or in part during performance.	Monthly - the constructive receipt as work is performed. Based upon Contractor Financial Management Reports (NF 533), technical personnel providing the value of work performed or the percentage of work completed and/or historical data previously reported. See NPR 9501.2.
Fixed-Price with Prospective Price Redetermination A fixed-price contract with prospective price redetermination may be used in acquisitions of quantity production or services for which it is possible to negotiate a fair and reasonable firm fixed price for an initial period, but not for subsequent periods of contract performance.	Monthly - the constructive receipt as work is performed. Based upon Contractor Financial Management Reports (NF 533), technical personnel providing the value of work performed or the percentage of work completed and/or historical data previously reported. See NPR 9501.2.
Fixed-Price Incentive Contracts A fixed-price incentive contract is a fixed-price contract that provides for adjusting profit and establishing the final contract price by a formula based on the relationship of final negotiated total cost to total target cost.	Monthly - the constructive receipt as work is performed. Based upon Contractor Financial Management Reports (NF 533), technical personnel providing the value of work performed or the percentage of work completed and/or historical data previously reported. See NPR 9501.2.
Fixed-Price Contracts and Purchase Orders A firm-fixed-price contract provides for a price that is not subject to any adjustment on the basis of the contractor's cost experience in performing the contract. May be used to acquire commercial items. A purchase order is an offer by the Federal Government to buy supplies or services, including construction and research and development, upon specified terms and conditions, using simplified acquisition procedures.	Monthly - as a straight-line calculation over a specific period per agreements, orders, or contracts. Monthly - as goods or services are received. Monthly - the constructive receipt as work is performed. Based upon receiving reports, inspection slips, or approved invoices.
Interagency Agreements An interagency agreement documents the procedure by which an agency needing supplies or services (the requesting agency) obtains them from another agency (the servicing agency).	Monthly - as goods or services are received per receiving reports, inspection slips, Minimum Accounting Data Elements (MADE) Forms, approved invoice or other instruments. (MADE forms per TFM 2-4700, Appendix 10, IGT Guide) Monthly - as a straight-line calculation over a specific period per agreements, orders, or contracts.
Government-wide Commercial Purchase Cards Government-wide commercial purchase card is a purchase card, similar in nature to a commercial credit card, issued to authorized agency personnel to use to acquire and to pay for supplies and services.	Monthly - as goods or services are received.
Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) Contracts SBIR contracts are designed to foster technological innovation by small businesses with 500 or fewer employees. STTR contracts provide opportunities in Federal innovation research and development that include joint venture opportunities for small business and the Nation's premier nonprofit research institutions. Stable cost patterns are inherent to both programs.	Monthly - as a straight-line calculation over a specific period per agreements, orders, or contracts. Monthly - the constructive receipt as work is performed. Based upon Contractor Financial Management Reports (NF 533), technical personnel providing the value of work performed or the percentage of work completed and/or historical data previously reported. See NPR 9501.2.

| TOC | Preface | Chapter1 | Chapter2 | Chapter3 | AppendixA | AppendixB | AppendixC | AppendixD | AppendixE | ALL |

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This Document is Obsolete and Is No Longer Used.
Check the NODIS Library to access the current version:
http://nodis3.gsfc.nasa.gov