NASA Procedural Requirements

NPR 9090.1C Effective Date: February 23, 2023 Expiration Date: February 23, 2028

Subject: Partnership Agreements – Financial Requirements and Administration (Updated with Change 1 on February 9, 2024)

Responsible Office: Office of the Chief Financial Officer

Appendix A. Definitions

Commercial. As defined in the National Space Policy of the United States of America (December 9, 2020), "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 nongovernmental customers."

Commercial Launch or Reentry. The means to place or try to place a launch vehicle or reentry vehicle and any payload or human being from Earth in a suborbital trajectory (from a launch site in the United States); in Earth orbit in outer space; or otherwise in outer space; or to return or attempt to return purposefully, a reentry vehicle and its payload or human beings, if any, from Earth orbit or from outer space to Earth.

Commercial Launch or Reentry Efforts. The activities supporting the commercial launch or reentry of a suborbital or space vehicle, payload, crew (including crew training), government astronaut, or space flight participant. Activities may include, but are not limited to, development of a vehicle or a payload for flight, and associated 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.

Cost Element. The categorical subdivisions of direct and indirect costs used in estimating NASA resources for an agreement activity. Examples of categorized cost elements are civil service labor, civil service travel, contractor costs, costs associated with office space or facilities, and utilities used to support the activity.

Cost Estimate. The calculation of NASA's planned commitment of resources to perform an activity outlined in an agreement. Costs should be identified by direct and indirect cost elements and in enough detail that reviewing and approving officials are aware of and agree to the resources being used to perform the activity.

Direct Cost. The cost 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).

Domestic Partner. A non-government U.S. entity.

Estimated Cost Report. The supporting financial document generally used to capture NASA's estimated costs and funding source for the goods or services to be provided by NASA as defined in a nonreimbursable agreement. The template in Appendix C outlines the minimum requirements for an ECR.

Estimated Price Report. The supporting financial document used to capture NASA's estimated costs, pricing adjustments, and estimated price to the partner for the goods or services to be provided by NASA as defined in a reimbursable agreement. The template in Appendix C outlines the minimum requirements for an EPR.

Excluded Costs. The costs not charged a partner in accordance with statute (e.g., CSLA, other laws) or regulatory policy (e.g., request to Congress, per NPD 9080.1).

Full Cost. The full cost of an output produced by a responsible 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 responsible segments within the reporting entity and by other reporting entities. For purposes of determining estimated cost, full cost means the direct and indirect resources used to provide the specific work.

Funded Agreements. Agreements in which NASA transfers appropriated funds to a domestic partner to accomplish an Agency objective where there is no direct benefit to NASA. Funded agreements may be used when the Agency cannot accomplish its objectives through the use of a procurement contract, grant, or cooperative agreement, and only after full and open competition. (Refer to NPDs 1000.5 and 1050.7.)

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, employee health and recreation facilities, and operating and maintenance costs.

Interagency. Activity between NASA and another Federal agency. An interagency agreement (IAA) documents the performance terms and conditions between the parties.²⁴

International Partner. A non-U.S. entity.

Launch or Reentry Property. Item built for, or used in, the launch preparation, launch, or reentry of a launch vehicle.

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.

Maintenance. The recurring day-to-day work that is required to maintain and preserve property, plant, and equipment in a condition suitable for it to be utilized for its designated purpose.

Market-Based Price. The price for a good, resource, or service that is based on competition in open markets and creates neither a shortage nor a surplus of the good, resource, or service (OMB A 25). It is the estimated amount that can be realized by disposing of an item through arm's length transactions in the marketplace; the price (usually representative) at which bona fide sales have been consummated for products of like kind, quality, and quantity in a particular market at any moment of time.

Nonbinding Arrangement. A type of non-agreement that may be used to outline activities prior to requirements or resources being known or to reach a mutual understanding intended to document programmatic objectives. These arrangements are generally given a title other than an agreement. (Refer to NAII 1050-1.)

Nonreimbursable Agreements. Agreements where NASA and the partner participate in a mutually beneficial activity that furthers the Agency's objectives, wherein each party bears the cost of its participation, and there is no exchange of funds between them. (Refer to NPD 1050.7.)

Out-grant. The non-permanent transfer of rights to NASA real property to others by means of a lease (or any other form of acceptable legal instrument that recognizes NASA as the landlord and the lessee as the tenant), permit, easement, right-of-way, license, SAA, and other agreement. (Refer to NPR 8800.15.)

Partner. The entity receiving services, materials, or support from NASA in accordance with an executed agreement.

Price. The term is used in this document to represent the level of reimbursement the partner is required to provide in return for a specified benefit received.

Pricing Adjustments. Adjustments to the estimated full cost based on laws and other regulations, allowable market-based pricing methodologies, or waived costs.

Reimbursable Agreements. Agreements in which the partner reimburses NASA in accordance with financial policy when NASA has goods, services, facilities, or equipment, that are not being fully utilized to accomplish mission needs, which can be made available to others on a noninterference basis, consistent with the Agency's mission objectives. (Refer to NPD 1050.7.)

Reimbursable Budget Authority. A budgetary resource category, approved on OMB Standard Form (SF) 132, that gives NASA the authority to accept funding from other entities as reimbursement for the cost of services rendered or goods provided. The budgetary resources become available to incur obligations only after reimbursable agreements are executed and, generally, the receipt of an advance (offsetting collection). Monies collected from the reimbursable customer as payment for the services provided are included in the Agency's total budgetary resources.

Space Act Agreements. Agreements executed under NASA's organic statute, 51 U.S.C. § 20101 et seq. NAII 1050-1, describes the types of Space Act Agreements and contains detailed guidance and advice for entering into Space Act Agreements. Space Act Agreements may be used as a broad reference or specific reference with U.S.C. Title 51.

Unfunded Agreements. Agreements in which the Agency provides goods, services, facilities, or equipment on a no-exchange-of-funds basis to a domestic partner to accomplish an Agency objective where there is no direct benefit to NASA and are subject to full and open competition. (Refer to NPD 1050.7.)

Waived Costs. The costs incurred by NASA, but not charged to a partner, and based on benefit received by NASA.

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