Effective Date: March 04, 2020
Expiration Date: March 04, 2025
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1.1.1 This directive establishes financial requirements for agreements as related to the financial management and administrative procedures, such as determining the estimated partner price (based on full cost), monitoring and recording agreement execution, and reporting agreement activity.
1.1.2 Agreements are generally referred to as reimbursable and nonreimbursable. Definitions and additional information are provided in NPD 1050.1 and its implementing instructions. 1
a. Reimbursable agreements require an estimated price report (EPR) unless listed as an exception in section 1.1.4. Reimbursable agreements may be executed as a fully reimbursable agreement or a reimbursable agreement with a price adjustment.
b. Nonreimbursable agreements require an estimated cost report (ECR) 2 unless listed as an exception section 1.1.4.
1.1.3 Agreements require development of an EPR or ECR (EPR/ECR) that is reviewed and approved by the Center CFO. Refer to Appendix C Estimated Price Report and Estimated Cost Report Templates.
a. An EPR is the supporting financial document for a reimbursable agreement that identifies NASA’s estimated resources (cost), any pricing adjustments, and estimated price to the partner for work to be performed by NASA as defined in an agreement.
b. An ECR is the supporting financial document for a nonreimbursable agreement that identifies NASA’s estimated costs and funding source for the work to be performed by NASA as defined in the agreement. The ECR is generated with sufficient detail to align the activity with the appropriate budget item(s).
c. The Center CFO approved EPR/ECR is provided as supporting documentation for the Signing Official in their consideration and determination of whether the balance of the contribution under the Agreement is fair and reasonable compared to NASA resources to be committed, NASA program risks, and corresponding benefits to NASA.
d. The EPR/ECR is an internal NASA planning document used to estimate the services to be provided to the partner. It is not a part of the agreement and should not be provided to the partner. The summary level information may be shared with the partner, where requested by the partner and deemed appropriate given the situation, to the extent that it doesn’t include proprietary data and has been vetted through the Center CFO. Calculations or specific identification to contracts or contractor information should not be provided to the partner. Any summary financial information provided to the partner will include a disclaimer that the information is for planning purpose only, and the estimated amount due from the partner will be based on the final cost of the services provided through the agreement.
1.1.4 Exceptions to the EPR and ECR requirement for agreements are:
a. Travel-only agreements.
b. Assignment of personnel agreements, e.g., Intergovernmental Personnel Act (IPA), 5 U.S.C. §§ 3371-3375, assignments; Intergovernmental Personnel Program (IPP) assignments, 42 U.S.C. ch. 62; Visiting Researcher assignments.
c. Use of personal and real property permits that are loans of property and are zero dollars or contain a gratuitous amount. 3
d. International nonreimbursable agreements with non-private sector partners.
e. Reciprocal aid agreements where NASA and an external organization mutually agree to assist during emergency situations (e.g., 42 U.S.C. § 1856a).
1.1.5 For financial purposes, the types of agreements are: a standalone, an umbrella (with annex(s)), an annex under an umbrella, or an amendment. Regardless of whether executed as reimbursable or nonreimbursable, each requires either an EPR/ECR unless an exception exists per 1.1.4.
a. A standalone provides the legal framework for NASA and a partner to execute a single or specific activity. The activity may be performed by one or multiple Centers. Where more than one Center is involved, refer to section 22.214.171.124.
b. An umbrella provides a mechanism for NASA and a partner to approve and perform a series of related or phased activities using a single governing instrument that contains all common terms and conditions. The umbrella establishes the legal framework for accompanying annexes. Individual tasks are implemented through the annexes which adopt the terms and conditions of the umbrella and include specific details for each task. Refer to NAII 1050-1 for further definition of an umbrella agreement. Each such annex requires an individual EPR/ECR as each is executed and may not exceed the term of the umbrella.
c. An amendment provides for the modification of an agreement, an umbrella, or an annex. An amendment that changes the estimated full cost or the price to the partner requires an EPR/ECR for the amount of the amendment. An amended EPR/ECR has the same vetting and approval requirements as the initial document.
1.1.6 NASA may execute agreements under several statutory authorities. Consult with the Agency Office of General Counsel (OGC)/Center Office of Chief Counsel (OCC) for appropriate authority when performing activities with a partner or for assistance where questions arise. The authority cited may impact NASA’s ability to retain reimbursement and proceeds. Refer to Appendix D Authorities for some commonly used authorities.
1.1.7 In addition to the activity and the authority, the partner is also a consideration for financial purposes when developing the agreement. The partner, whether Federal, non-federal, etc., may impact how funding is received, recorded, and reported in NASA financial accounts and statements.
1.2.1 The Agency Chief Financial Officer (CFO) or Agency Office of the Chief Financial Officer (OCFO) Division designee shall:
a. Develop, update, and issue financial management policies for agreements and interpret laws and other guidance for application.
b. Perform accounting and financial management and reporting related to agreements, such as:
(1) Maintain financial records and prepare internal and external reports.
(2) Request and receive apportionments of reimbursable authority from the OMB and distribute authority to Centers.
(3) Provide oversight of internal controls, including those to prevent over-obligation of reimbursable funds.
(4) Establish conventions for accounting classifications supporting reimbursable work (e.g., Work Breakdown Structure (WBS) codes) in accordance with NASA policy.
c. Review agreement abstracts or proposed agreements, in accordance with Agency policy, and provide comments or concurrence. 4
d. Review and approve cost waiver requests for reimbursable agreements in which the estimated price to the partner is less than the estimated direct cost of the activity. Provide disapproved cost waivers and reasoning to the Center CFO. Revised cost waivers may be resubmitted for reconsideration.
1.2.2 Agency Associate Administrators for the Mission Directorates, Officials-in-Charge of Headquarters (HQs) Offices, NASA Center Directors, and the Director, NMO, or their designees, within their areas of jurisdiction, shall:
a. Develop budget estimates in conjunction with Agency OCFO for reimbursable activity based on budget requests and guidance.
b. Manage negotiation, approvals, and execution of agreements as outlined in NASA policy and guidance, such as NPD 1050.1 and its implementing instructions.
c. Ensure an approved EPR/ECR and required waivers or pricing adjustment justifications are included with an agreement as supporting documentation prior to final agreement signature.
d. Monitor the financial status of reimbursable agreements, internal controls, and other actions to ensure NASA receives the proper level of reimbursement for work performed by NASA.
1.2.3 The Associate Administrator for the Office of International and Interagency Relations (OIIR) or their designee shall implement their responsibilities, as outlined in NPD 1050.1 and its implementing instructions and this NPR. Responsibilities include the negotiation, conclusion, amendment, and termination of international agreements; the review of agreements with other Federal Agencies; and the review, coordination, and archiving of classified interagency activities.
1.2.4 Center CFO and equivalent positions in the MSD RPMO and the Director, NMO, or their designee (Center CFO), shall:
a. Ensure the overall accounting and financial management of agreements is in accordance with this NPR and other relevant financial policy and procedures.
b. Review and approve Center agreements as part of the overall approval process.
c. Review and approve EPRs/ECRs for Center-related activity on agreements prior to final agreement approval, to include the amount, funding source, and purpose. 5
d. Review and approve applicable waivers (such as cost waivers, other pricing adjustments, or waivers of advance payment) and ensure the appropriate approvals have been obtained for the direct funding source.
e. Review and approve Center-specific or alternative indirect cost rates in accordance with section 3.2 Agreement Cost and Rates.
1.2.5 Center Office of Chief Financial Officer (Center OCFO) and equivalent offices at HQs shall:
a. Perform the accounting and financial management of agreements is in accordance with this NPR and other relevant financial policy and procedures.
b. Prepare an agreement-level EPR/ECR when designated as the responsible or managing (lead) Center of a multi-Center agreement, i.e., other Centers are designated for a portion of the work. (Refer to section 126.96.36.199.)
c. Ensure a market survey is provided when Center reimbursable work is comparable to a market equivalent and that the results of the survey are consolidated, evaluated, and analyzed, with the objective of reaching a pricing structure for the Center. Refer to Appendix E Market-Based Pricing.
d. Monitor agreement execution in coordination with the Agreement Managers and the performing organization to ensure financial issues are managed and resolved, e.g., low funding notification, expiration notification.
e. Reconcile reimbursable agreement financial records and disposition the related funding.
f. Notify the NASA Shared Services Center (NSSC) of refunds or bill of collections.
1.2.6 The NSSC shall:
a. Receive advances and notify the responsible Center OCFO for proper posting.
b. Execute monthly billings and collections.
c. Process refunds or bill of collections.
1.2.7 Agreement Managers shall:
a. Ensure approved EPR/ECR and supporting documentation are included in the agreement routing package and uploaded to the official agreement system of record.
b. Administer agreements, in coordination with the Center OCFO and the performing organization, to include notifying the Center OCFO of issues that may impact the financial management of an agreement.
1.2.8 The performing organization, 6 in coordination with the Agreement Manager and supporting Center OCFO, staff shall:
a. Ensure agreement routing package contains financial information, such as:
(1) Approved EPR/ECR, for the agreement, including the identification of a direct funding source and justification for pricing adjustments. (Refer to section 188.8.131.52.)
(2) Center CFO-approved waiver of advance payment (based upon need).
b. Monitor the financial activity and internal controls, in coordination with the Center OCFO, to ensure partners are properly charged for reimbursable activities and costs do not exceed the obligation when conditions necessitate finance action such as a change in price (increase or decrease) or termination of work.
c. Develop budget estimates in conjunction with Center OCFO for reimbursable activity in accordance with budget request and guidance.
d. Ensure reimbursable work is not initiated until an agreement is fully executed and advance funds are received, unless a waiver for advance payment is approved.
1.2.9 The Center OCC and/or the Agency OGC shall review, provide legal guidance, and comment/concur on agreements in accordance with applicable fiscal and financial laws, regulations, and NASA policies.
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