NASA Procedures and Guidelines
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NPR 9090.1A Eff. Date: February 25, 2013 Cancellation Date:	Reimbursable Agreements
| TOC | Preface | Chapter1 | Chapter2 | Chapter3 | Chapter4 | Chapter5 | AppendixA | AppendixB | AppendixC | AppendixD | AppendixE | ALL |

Appendix A. Definitions

Commercial. As defined in the National Space Policy of the United States of America (June 28, 2010), "The term "commercial" for purposes of this policy, refers to space goods, services, or activities provided by private sector enterprises that bear a reasonable portion of the investment risk and responsibility for the activity, operate in accordance with typical market-based incentives for controlling cost and optimizing return on investment, and have the legal capacity to offer these goods or services to existing or potential non-governmental customers."

Commercial Launch or Reentry. For purposes of this policy, a commercial launch or reentry is any launch or reentry which is anticipated to be subject to a license or permit by the Federal Aviation Administration (FAA). These include FAA licensed or permitted launch and reentry activities carrying a NASA payload pursuant to a contract or other arrangement between NASA and the commercial launch provider.

Commercial Launch or Reentry Effort. Activities supporting the commercial launch or reentry of a suborbital or space vehicle, payload, or persons. Such activities may include, but are not limited to, development of a vehicle or a payload, activities for flight, and ground safety; engineering activities; acceptance of a vehicle or a payload (or their components) by the provider, associated handling, transportation, and storage; processing a vehicle, a payload, or support for crew and spaceflight participants (including training) for launch or reentry; integrating a launch vehicle and a payload; activities at a launch or reentry site; and conducting a launch or reentry.

Direct Budget Authority. Direct Budget Authority is the authority provided by law to incur financial obligations that will result in outlays. The term direct budget authority is used in this document to identify the authority NASA receives as the result of Congressionally enacted appropriations and apportionments issued by OMB. As used in this document, direct budget authority does not include reimbursable budget authority.

Direct Costs. Direct costs are costs that can be specifically identified with an output. All direct costs should be included in the full cost of outputs. Typical direct costs in the production of an output include: (a) salaries and other benefits for employees who work directly on the output (b) materials and supplies used in the work; (c) various costs associated with office space, equipment, facilities, and utilities that are used exclusively to produce the output; (d) costs of goods or services received from other segments or entities that are used to produce the output; and (e) other costs related to the production of the output (e.g., travel).

Full Cost. The full cost of an output produced by a responsibility segment is the sum of (1) the costs of resources consumed by the segment that directly or indirectly contributes to the output and (2) the costs of identifiable supporting services provided by other responsibility segments within the reporting entity and by other reporting entities. For purposes of reimbursable work, full cost means the direct and indirect resources used to provide the specific work. It would include CMO, except in the cases of HQ agreements and agreements involving NMO for work to be performed by JPL, (an FFRDC). Generally, it would not include Agency Management and Operation (AM&O) unless determined otherwise, as discussed in Section 3.2.3.1. The level of HQ expenses resulting from reimbursable agreements generally cannot be clearly identified with a specific customer's work and are so minimal that the collection of corporate charges from individual reimbursable agreements is not warranted. The full cost of HQ and NMO (for work to be performed by JPL, (an FFRDC)) reimbursable agreements would include an administrative fee. See the discussion of the "Administrative Fee for Reimbursable Agreements Involving Headquarters or the NMO for work to be performed by JPL, (an FFRDC)" in Section 3.2.3.1. Imputed rents (e.g., depreciation) are generally excluded from a reimbursable agreement full cost calculation for administrative considerations (See OMB Circular A-25, Section 7, as costs of administering such collection may exceed the amount of such imputed rents). See SFFAS 2 and 4 for a general discussion on responsibility segments and costing.

Indirect Costs. Indirect costs are costs of resources that are jointly or commonly used to produce two or more types of outputs but are not specifically identifiable with any of the outputs. Typical examples of indirect costs include costs of general and administrative services, general research and technical support, security, rent, employee health and recreation facilities, and operating and maintenance costs for buildings, equipment, and utilities. There are two levels of indirect costs: (1) Indirect costs incurred within a responsibility segment. These indirect costs should be assigned to outputs on a cause-and-effect basis, if such an assignment is economically feasible, or through reasonable allocations; (2) Costs of support services that a responsibility segment receives from other segments or entities. The support costs should be first traced or assigned to various segments that receive the support services. They should then be assigned to outputs.

Interagency Agreements (IA). Interagency Agreements are agreements between NASA and another Federal agency that document the performance terms and conditions between the parties.

Launch or Reentry Property. Real and personal property constructed for, or to be used in, commercial launch and reentry efforts. Launch or Reentry Property includes consumable items, such as propellants.

Launch or Reentry Services. Services supporting commercial launch or reentry efforts.

Marginal Cost. The increase in total cost as a result of producing an additional unit or undertaking an additional activity. Mathematically, the marginal cost function is expressed as the first derivative of the total cost function with respect to quantity. In the context of this NPR, the marginal cost is the increase in total cost as a result of performing the work on a reimbursable agreement versus total costs that would be incurred in the absence of that agreement. That would exclude allocations of fixed costs. Incremental cost can be considered equivalent to marginal cost in the context of this NPR.

Reimbursable Agreement Price. The term "price" is used in this document to represent the level of reimbursement the customer is required to provide in return for a specified benefit the customer will receive.

Reimbursable Budget Authority. Reimbursable budget authority is provided by Congress annually. This is not the same as direct budget authority. By itself, reimbursable budget authority does not permit the Agency to incur obligations. Instead, reimbursable budget authority is authority to perform work on a reimbursable basis for other entities. Authority to incur obligations is recorded when signed reimbursable agreements are recognized. Monies collected from the reimbursable customer as payment for the services provided are included in the Agency's total budgetary resources.

Space Act Agreements. NASA's "Space Act Agreements Manual," NAII 1050-1, describes the types of Space Act Agreements and contains detailed guidance and advice for entering into Space Act Agreements.

Domestic Space Act Agreements. Agreements between NASA and a non-government U.S. entity.

International Space Act Agreements. Agreements between NASA and a non-U.S. entity. International reimbursable agreements are established and negotiated by NASA HQ. The Assistant Administrator for Office of International and Interagency Relations is responsible for the negotiation, execution, amendment, and termination of International Agreements.

Space-Related Facilities. Those facilities whose use at the time are directly related to gaining access and return from space or the conduct of activities in space. The determination of whether a facility is space related is based on the nature of the use of the facility and not on its purpose for existing. Some facilities may be dual use, that is, some uses are space related and some are not.

Total Project Cost. Total project cost is the sum of the agreement's full cost and NASA's cost to support the collaboration.

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