SPECIAL INSTRUCTIONS PERTAINING TO SCHEDULE III ITEMS 1. These instructions are to establish a standard for listing all proposed items of machinery and equipment. In order to properly evaluate such a listing, it is absolutely necessary for items to be described so that they can be easily identified. Also, itemize and give sufficient description to justify cost. However, like items may be combined as a single entry, so long as purpose and justification remain the same. 2. A satisfactory description should include the following data: a. Manufacturer's name. b. Manufacturer's model number. c. Complete nomenclature and description of size and capacity, type (plain universal, knee or bed, vertical, horizontal, etc.) number of spindles, working heads or units, etc. (where applicable), including any special features. d. Electrical characteristics (110 v, 220 v, 440 v, 3 phase, 60-cycle, AC or DC, etc.). e. Any other information necessary to completely identify items desired. f. Possible substitutions in order of desirability. g. Date of delivery for each item as required to meet delivery schedule of the contract in question. h. Estimated delivery cost of each item. i. Full Commodity Classification Code (i.e., PEC, FSC, or SCC, as applicable) as set forth in Appendix A to the NASA Industrial Property Control Manual (NPC 105). J. Give specific nomenclature in all cases. For example: welders-indicate whether spot, arc, butt, flash, the manufacturer, throat size, electrical characteristics, frame size; furnaces-manufacturer, model, size and capacity, electrical specifications, whether gas, oil, or electrically fired, etc. Size and capacity can be given, along with complete nomenclature, even though model may not be applicable, for all items of related production equipment. 3. Purpose and detailed justification. 4. Costs of installatic a, entered parenthetically and excluded from Schedule III Subtotals and Totals, s'ould be entered as Schedule V, Machinery and Equipment Installation Costs. Schedule IV-Portable Tools and Material Handling and Automotive Equipment NOTE: Individual item installation costs as set forth in Schedule III (a, b, c, d, e, and f) are to be excluded from Schedule III subtotals and totals. Such totals should be entered as Schedule V, Machinery and Equipment Installation Costs. (e) Subcontracting. Percentage of subcontracting planned by dollar amount and/ or percent of total effort. Justify, level of § 18-13.5106 Format for presenting planned subcontracting. To the degree pos justification data. sible, identify subcontractors and the items to be subcontracted. Justify reasons for not subcontracting additional work. If facilities are anticipated for subcontractors, so identify. (f) Financial progress. Provide a 5-year summary of the contractor's financial progress as follows (by company division, if appropriate): (a) Except as permitted by § 1814.204, inspection on behalf of the Government shall be conducted in all cases prior to acceptance. Inspection shall be accomplished by or under the supervision of Government personnel. Except as otherwise provided in the contract, test requirements may be performed in the contractor's or subcontractor's laboratory or any other commercial laboratory acceptable to the Government. The contractor may be required under the terms of the contract to establish and maintain an acceptable inspection or quality control system to ensure compliance with contract specifications with a minimum of Government inspection supervision. A manufacturer's certificate or other statement of quality or quantity may be considered in determining whether supplies or services are in conformity with the contract; but no provision of the contract shall preclude the Government from performing inspection. (b) The type and extent of inspection needed depend on the particular procurement. For example, on items which would involve small losses in the event of defects and which would probably be replaced by suppliers without contest, inspection may consist only of checks for identity, quantity, and shipping damage. Detailed requirements for spare systems and elements thereof are contained in "Quality Assurance Provisions for Government Agencies" (NPC 200-1A), and Subpart 18-14.50. § 18-14.102 Activities responsible for inspection. Inspection, or the arrangement therefor, is the responsibility of the installation effecting or administering the procurement. When a NASA installation uses the inspection services of another executive agency, the agency performing § 18-14.105 Places of inspection. (a) In the interest of achieving economy and efficiency in the inspection of contract items, procurement offices shall utilize the inspection services of other executive agencies to ensure the most economical inspection consistent with the best interests of the Government. The purpose of inspection interchange agreements is to eliminate duplication, overlapping, or multiple assignments of inspection activity in any one plant. (b) Agreements have been entered into by NASA with the Departments of the Air Force (see NASA Management Instruction 2-3-4), the Navy (see NASA Management Instruction 2-3-6), and the Army (see NASA Management Instruction 2-3-9), relating to the performance of field service functions, including inspection, test, and acceptance, in support of NASA contracts. The procedures set forth in these agreements shall be observed by all NASA procurement offices in arranging for performance of inspection by these Departments. Inspection agreements may also be used between NASA field installations in order to achieve maximum economy and efficiency. § 18-14.104 Contractor responsibility. The inspection clauses included in NASA contracts require the contractor to maintain an inspection system acceptable to the Government and records of all inspection work performed by the contractor. The contractor's inspection system should be such as to provide reasonable assurance that the supplies and work under the contract will conform to contract requirements and should include any quality control procedures necessary to this end. In any case, when Federal or Military specifications are used to establish requirements in the contract, the supplier shall be required to perform all examinations and tests called for by the specifications except those which the Government is expressly required to make. Each contract shall designate the place or places of inspection. Inspection of supplies and services shall be made at such times and places (including any stage during the period of manufacture and including subcontractors' plants) as are necessary to determine that the supplies and services conform to contract requirements. When the contract provides for inspection at source, shipment prior to inspection may be authorized if it is determined to be in the best interest of the Government. In such cases, to the extent appropriate, the contract should be modified prior to shipment with respect to (a) risk of loss in transit and (b) shipping and other expenses incurred in the event of rejection at destination. § 18-14.105-2 Inspection at source. Supplies and services shall be inspected at source when: (a) Inspection at any other point would require uneconomical disassembly or destructive testing; (b) Considerable loss would result from the manufacture and shipment of unacceptable supplies or from the delay in making necessary corrections; (c) Special instruments, gauges, or facilities required for inspection are available only at source; (d) Inspection at any other point would destroy or require the replacement of costly special packing and packaging; (e) Quality control and inspection are closely related to production methods; (f) Supplies requiring technical inspection are destined for points of embarkation for overseas shipment; or (g) Otherwise determined to be in the best interest of the Government. § 18-14.105-3 Inspection at destination. Supplies and services shall be inspected at destination when: (a) Deliveries of supplies purchased "off the shelf" are made from a point other than that of manufacture; (b) Necessary testing equipment is located only at destination; (c) Biologicals being purchased are processed under direct control of the National Institutes of Health or the Federal Food and Drug Administration; (d) The volume of procurement at a given plant is not sufficient to warrant the increased cost of inspection at origin; or cost to the Government. Notices of rejection of nonconforming supplies or services need not be in writing unless (a) the supplies have been delivered to a (e) Otherwise determined to be in the point other than the contractor's plant, best interest of the Government. § 18-14.106 Inspection of small purchases ($2,500 or less). (a) This § 18-14.106 applies to all small purchases, including items described in Federal and Military specifications, and qualified products. In determining the type and extent of Government inspection to be required on small purchases, the smallness of possible losses and the likelihood of uncontested replacement of defective articles shall be considered. (b) Generally, inspection of small purchases shall be at destination. Purchasers, users, and installers may be considered inspectors for small purchase inspection purposes. (c) Unless detailed technical inspection is necessary, inspection shall consist of examination of (1) type and kind; (2) quantity; (3) damage; (4) operability, if readily determinable; and (5) packaging and marking, if applicable. (d) Detailed technical inspection shall be performed if special specifications are involved or if defective supplies can harm personnel or equipment. (e) Detailed technical inspection may be limited to a check of characteristics that require separate specifications and of those likely to cause harm. Such inspection may be limited to inspection of occasional purchases of the same item from the same manufacturing source when there is good reason to rely upon the integrity of the manufacturer because of known safeguards and a significant history of defect-free purchases. (f) Adjustments for short shipments or defective supplies shall be requested from suppliers when recovery will benefit the Government. § 18-14.107 Rejection of nonconforming supplies or services. Contractors ordinarily shall be given an opportunity to correct or replace nonconforming supplies or services if this can be done within the required delivery schedule. Unless the contract provides otherwise, such correction or replacement shall be without additional (b) the contractor persists in offering nonconforming supplies or services for acceptance, or (c) delivery or performance is overdue without excusable cause. The reasons for rejection normally shall be stated, and the contractor may be given any suggestions that might help in eliminating the cause of rejection. If timely notice of rejection is not furnished to the contractor, acceptance may, in certain cases, be implied as a matter of law from such omission. Therefore, notices of rejection should be furnished promptly to contractors whenever rejection is intended. § 18-14.108 Government inspection under subcontracts. Government inspection of subcontracted supplies or services shall be made only when required in the interest of the Government. The primary purpose of subcontract inspection is to assist the Government inspector at the prime contractor's plant in determining the conformance of supplies or services with contract requirements. It does not relieve the prime contractor of any of his responsibilities under the contract. Supplies and services that do not qualify under the criteria in § 18-14.105-2 for Government inspection at source shall not be inspected by the Government at the subcontractor's plant. Supplies and workmanship for which certificates, records, reports, and similar evidence of quality are available at the prime contractor's plant shall not be Governmentinspected at the subcontractor's plant except occasionally to verify such evidence. However, Government inspection shall be performed at a subcontractor's plant whenever the Government contract requires. All oral and written statements and contract provisions relating to the inspection of subcontracted supplies shall be so worded as not to (a) affect the contractual relationship between the prime contractor and the Government or between the prime contractor and the subcontractor, (b) establish a contractual relationship between the Government and the subcontractor, or (c) constitute a waiver of |