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 E. Market-Based Pricing

E.1 Market-based pricing is discussed in Chapter 4. This Appendix provides additional guidance regarding this pricing procedure. See also section 4.2.3.

E.1.1 When a competitive demand exists, the market price is determined by market rates from commercial providers.

E.1.2 In the absence of competitive demand, the market price is determined by considering the price for goods, resources, or services comparable to those provided by the Government and adjusting for the supply being made available, so neither a shortage nor a surplus is created. Where a comparable supply is considered, NASA may find it beneficial to consult an appraiser or other person knowledgeable of what potential partners generally would pay for such goods or services prior to negotiating an agreement with a potential partner. This situation is comparable to a house appraisal where a professional appraiser takes into consideration both comparable prices and also the unique features and condition of the house involved.

a. Adjustments to consider in computing market price would involve the unique security, emergency, and institutional services associated with a property on a NASA installation. The costs of providing these services should be part of the calculation of market price if a comparison is made with facilities outside the Center's secured area.

b. Adjustments from a market survey will be supportable and documented and involve participation from persons independent of the negotiation with the partner and who are knowledgeable in the pricing of the good or service. There should be reasonable support for a price to ensure that NASA would obtain fair reimbursement.

E.2 Market Survey. In the absence of commercial providers of similar services, an objective and reasonably independent market survey analysis should be conducted. The pricing should result in attracting partners, but it should not place competitors at a disadvantage. If a survey for comparable goods or services has been conducted within the last year, the Center may use the results of that survey.

E.2.1 An example of a market survey may be obtained by interviewing a representative sample of commercial providers and analyzing the results to provide a reasonable assurance that a comparable pricing structure can be determined.

E.2.2 Surveys may be conducted through interviews, reviewing published rates, or other appropriate alternative methods, such as through knowledgeable industry representatives or associations. Information obtained and determined to be classified or sensitive (controlled unclassified information) will be protected and labeled in accordance with current NASA standards. Minimum documentation should include:

a. Name of the commercial service provider.

b. Date of the information received.

c. Pricing information.

E.3 Interim Pricing Adjustments between Scheduled Market Surveys. During the period between scheduled market surveys, new pricing-related information may be discovered that should be reviewed and analyzed for possible interim adjustments to the Center's pricing structure. These adjustments should be kept to a minimum to maintain pricing consistency and fairness to partners. Pricing changes should not be influenced by "negotiations" with individual partners. The pricing strategy is market-based, not partner-based. When an interim pricing adjustment is necessary, the adjustment should be well documented and supporting evidence maintained for three years. Interim pricing adjustments do not affect signed and executed reimbursable agreements unless the agreement contains a provision for a change. Interim pricing adjustments may not be applied retroactively.

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