NASA Procedural Requirements

NPR 8820.2H Effective Date: September 27, 2022 Expiration Date: September 27, 2027

Subject: Facility Project Requirements (FPR) (Updated w/Change 1)

Responsible Office: Office of Strategic Infrastructure

Chapter 7. Facilities Investments by Others

7.1 Purpose and NASA Goals

7.1.1 Non-NASA Funded Construction. NASA has traditionally allowed other Federal Government agencies and commercial entities to operate in or on NASA facilities under formal real estate agreements. When Federal and commercial entities desire to fund either modifications to existing NASA property or construction of new buildings and facilities on NASA-owned property, these actions need to be documented within the real estate agreement and approved by FRED. This chapter provides references to the appropriate property accounting and real property policies and provides guidance regarding modifications or new construction desired by non-NASA entities. Mission Directorate POCs, Agency Portfolio Managers, Center CoF Program Managers, FPMs, RPAOs , COs, and Real Estate Contracting Officers (RECOs) shall ensure that the requirements of this chapter are included in real estate agreements that include construction activities. In this chapter, the term "others" includes Federal or commercial entities that have established a real estate agreement (e.g., lease, enhanced use lease, license, or permit) to access, use, or alter NASA-owned property.

7.1.2 Compliance to NASA policy. All facilities constructed on NASA-owned or -managed property need to comply with requirements of this NPR regardless of the funding source used for construction.

7.1.3 New facilities constructed by others. The NASA personnel involved in developing real estate agreements shall stipulate that new facilities constructed by tenants on NASA-owned property will be demolished upon expiration of the agreement. In this case, compliance with this NPR ensures that constructed entities will be deconstructed or demolished in a manner that maximizes material recycling and equipment reclaim/reuse to minimize wastes deposited to landfills. However, there are instances where NASA will assume ownership of the new facility upon completion of the interests and term of agreement. Compliance with this NPR ensures that NASA receives property that is energy efficient and sustainable according to current codes and industry standards, environmentally responsible, accessible to all, maintainable, and provides a healthy and safe working environment.

7.1.4 Major modification of existing NASA-owned facilities by others. Real estate agreements typically stipulate that NASA-owned properties that have been modified by the tenant be returned to their original condition upon expiration of the agreement. However, there are instances where the modifications are of benefit to NASA's missions. Compliance with this NPR ensures that modifications are energy efficient and sustainable, environmentally responsible, accessible to all, maintainable, and provide a healthy and safe work environment.

7.2 Real Estate Agreements Involving Construction

7.2.1 Federal Partners/Tenants. Real estate agreements will conform with the requirements of NPR 9090.1, Partnership Agreements - Financial Requirements and Administration. Partners/tenants will establish a reimbursable cost model as required by the Economy Act and use the Estimated Price Report (EPR) to identify facility investments to be executed by any funds source. All modifications and new construction to be capitalized require the submission of form NF-1509 to FRED by the Center's CoF Program Manager.

7.2.2 Non-Federal Partners/Tenants. Real estate agreements will conform to the requirements of NPR 9090.1. Partners/tenants will establish a reimbursable cost model per the Space Act, identifying facility investments to be executed as specified within the Estimated Price Report (EPR) and other accounting and financing methods for all construction executed regardless of funding source. All modifications and new construction to be capitalized require the submission of form NF-1509 to FRED by the Center's CoF Program Manager.

7.2.2.1 Real estate agreements with non-Federal partners/tenants will require acknowledgment that the property, including major modification of existing facilities and the construction of new facilities, is subject to, without limitation, state and Federal laws and regulations and NASA-specific policy directives.

7.2.2.2 Real estate agreements with non-Federal partners/tenants require acknowledgment that said laws, regulations, and policy directives regulate and police, without limitation, physical and cyber security, preservation of designated historical sites, environmental concerns, Federal Aviation Administration compliance, and FEMA compliance. As such, non-Federal partners/tenants exercise of Real Estate Uses and Agreements may sometimes be delayed, limited, modified, or denied due to overriding legal, regulatory, or policy concerns.

7.3 Major Modifications and New Construction by Partners/Tenants

7.3.1 General. Major modifications of existing NASA-owned property and the construction of new facilities on NASA-owned land executed by a partner/tenant will be considered a lease-hold improvement. These activities, as clearly defined in the real estate agreement, will comply with Federal, state, and local environmental and cultural resource preservation laws and regulations, as well as NASA environmental and cultural resource preservation policies identified in this NPR. Agreements will include language identifying the roles and responsibilities for NEPA, NHPA (if applicable), and Environmental Due Diligence (EDD) compliance. New construction or major modifications to any NASA-owned real property, with an AFPCE more than the MRC CoF threshold will not be undertaken without prior approval of the Director of FRED or their designee.

7.3.2 Federal Tenant/Partner Funding for Infrastructure. Federal partner/tenant that desire to fund infrastructure projects on NASA-owned property will ensure that Congress has provided appropriations for this purpose and that the Federal partner/tenant has authority to execute the project. Therefore, the FPM or the Center CoF Program Manager should request this information from the Federal partner/tenant and the real estate agreement should include language that clearly identifies the responsibility of the funding agency as related to these appropriations.

7.3.3 Emissions. Real estate agreements will clearly indicate that the partner/tenant may not execute any construction activities that will create, change, or increase any emission of wastewater, air emissions, hazardous wastes, or other uniquely regulated waste streams without the prior written approval of the Center's Environmental Organization.

7.3.4 Property retained by NASA. NASA out-grants may authorize the partner/tenant to make capital modifications to NASA-owned real property assets or construct new assets on NASA-owned property. In these cases, the out-grant should require the partner/tenant to record all costs associated with the modification or new construction. The FPM or the Center CoF Program Manager will then use this information to submit form NF-1509 to FRED and the RPAO. If NASA wishes to retain the modified or newly constructed asset upon expiration of the out-grant, NASA will have to reimburse the partner/tenant for the value of the improvements or, if offered by the partner/tenant as a gift, accept the improvements in accordance with the National Aeronautics and Space Act, 51 U.S.C. 20113 (d). The Center CoF Program Manager should work with the Center's Office of the General Counsel to select the appropriate path. The RPAO will then record the costs in the RPMS as an addition to the net value of a modified existing asset or the value of a newly constructed asset. These costs will then be capitalized in accordance with NPR 9250.1 and require the submission of an NF-1739 for OCFO review.

7.3.4.1 The request for transfer of the modified asset to NASA is to be submitted not less than one year before the end of the out-grant or agreement term and includes an explanation of the benefit of such acceptance in accordance with the acquisition policy described in this and other NASA NPR documents.

7.3.4.2 In most cases, the out-grant will specify that modifications to an existing asset or a newly constructed asset be removed by the tenant, at the tenant's cost, at the end of the lease, out-grant, or other agreement term.

7.4 Waiver Process

7.4.1 The NASA-designated FPM representing a Federal or commercial entity shall submit a waiver request and a supporting business case when the planned project seeks relief from the design and

construction requirements specified in this NPR. This includes, but is not limited to, a request to waive compliance with the Guiding Principles and/or third-party building sustainable certifications.

7.4.2 The submitted waiver will follow the guidelines of NPR 1400.1, NASA Directives and Charters Procedural Requirements, Chapter 5, describing Requesting Waivers from Requirements in NASA Directives. This guidance does not allow for a waiver due to additions to cost or schedule, relief from safety regulations (including consensus building and fire codes), or elimination of the requirement. Along with the justification for a waiver, the requestor shall include the alternative solution proposed to compensate for the relief requested. No construction-related activity can begin during the waiver submittal review nor until a NASA decision has been made and received by the requester in writing.

7.4.3 This waiver process is different than the process of requesting a deviation from the FAR or the NASA FAR Supplement. Those processes are described in FAR 1.4 (Deviations from the FAR) as well as NFS 1.4 (same title).

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