SPACE SHUTTLE PROGRAM

1. SPACE SHUTTLE PROGRAM TRANSITION AND RETIREMENT

2. SSP Focus Area

3. Characterization of Assets • Space Shuttle Program occupies 640 facilities • Over 1.3 million line items of government property • More that 2,000 civil servants and 15,000 contractor employees • Total equipment value over 12 billion dollars • Total facility value over 5.7 billion dollars

4. Defining the Challenge • Big • Complex • Uncharted • Emotional • Expensive

5. Challenges • Big – How do we get our arms around it? • Uncharted – NASA has never closed a program this large. • Expensive – Initial costs to disposition property $600 Million!

6. Big – How do we get our arms around it? • TPA – Transition Property Assessment • Space Shuttle Program was requested to create a line item tool to: • Identify property classification • Annotate transfer or excess – partner with ISS and Cx • Identify last need date • Identify whether potential artifact • Provide data relative to oversized, export controlled, hazardous

7. Uncharted – NASA has never closed a program this large. • Pursue waivers where advantageous • Address normal day-to-day processes for streamlining • Flow out to SSP contractors • Flow out to NASA/DCMA Property Disposal Officers and Property Administrators

8. Expensive – How do we limit cost? • Procurement Information Circular (PIC) 09-02 - January 14, 2009 • DEVIATION AND SPECIAL PROPERTY DISPOSITION INSTRUCTIONS FOR SPACE SHUTTLE RELATED CONTRACTS

9. PIC 09-02 cont’d • PURPOSE: This PIC provides Deviations to Federal Acquisition Regulation (FAR) property clauses and instructions, and provides special delegation of property administration instructions for use on Space Shuttle Program (SSP) related contracts holding Government Property. • BACKGROUND: NASA expects to process hundreds of thousands of individual items through the disposition process as a result of the phase-out of the SSP. With the significant numbers of assets to be dispositioned as a result of that phase-out, there is a risk that property disposition costs could become excessive and those costs could have a deleterious effect on ongoing NASA programs. As a result, Space Shuttle Transition Teams at Headquarters and at the affected centers have been considering alternative methods which could be employed to avoid cost, when appropriate, during the process. Several of those methods require action by Contracting Officers in consultation with Property Administrators and SSP personnel.

10. PIC 09-02 cont’d • MARKINGS: • One costly process required by the FAR and NFS property rules involves the requirement to remove all Government markings from property being dispositioned. The removal of NASA markings from individual items of NASA property undergoing disposition has been identified as a task that is likely to result in increased cost during the disposition process. This action increases cost because it requires that disposal activities or contractors process items on an individual item basis and precludes processing like items in quantity or in bulk. • In addition, it is likely that the removal of identification markings from NASA property may lower the reutilization potential and the value of the property. Removal of NASA identification makes it more difficult for museums or collectors to identify specific items of property that had been used for significant agency activities. Removal of NASA identification also makes it more difficult to determine whether or not the items were appropriately dispositioned, since removal often severs the link to the property records. Further, removal of decals that are deliberately designed and manufactured to be difficult to remove can damage the property, potentially reducing its value at disposition.

11. PIC 09-02 cont’d • GUIDANCE: • Modify existing Space Shuttle related contracts to replace old, standard, FAR property clauses with the clause from FAC 2005-17. • Modify the new FAR clause 52.245-1, as a “Deviation” and modify paragraph (j)(8)(ii) to read: “The Contractor shall prepare for shipment, deliver f.o.b. origin, or dispose of Contractor inventory as directed by the Plant Clearance Officer. The Contractor shall remove and destroy any markings identifying the property as U.S. Government-owned property only when instructed by the Contracting Officer or Plant Clearance Officer. “ • If the Contracting Officer does not modify the contract to include the newer FAR property clause and deviation as above, and retains an earlier FAR property clause, the Contracting Officers shall modify the contract to instruct the contractor that the requirement imposed by the clause’s reference to FAR 45.506(d) (the FAR version in effect prior to FAC 2005-17) regarding the removal of Government markings, is no longer applicable unless otherwise instructed by the Plant Clearance Officer. • In addition, the requirement for performance of a final physical inventory, as also required by the clause’s reference to FAR 45.508-1, may be waived by the Property Administrator.

12. PIC 09-02 cont’d • Another potential cost saving measure identified by Space Shuttle Transition Teams relates to an efficient process of dispositioning Space Shuttle property. Inasmuch as the Defense Contract Management Agency (DCMA) provides property administration support on most of NASA’s major contracts, changing property administration delegation instructions to authorize and encourage streamlined procedures will facilitate prompt plant clearance action. NASA Headquarters has developed modifications for DCMA property administration and plant clearance delegation instructions, specifically related to the disposition of property on Space Shuttle related contracts. These delegation instruction modifications are provided in the enclosure and provide the following: • Direction to property administration personnel instructing them to encourage contractors to report similar bulk materials in lots and identical description, non-capital equipment items (valued under $100,000) in quantity; to exempt contractors from the final physical inventory requirement unless the records, physical inventory, or property disposition portions of a contractor’s property management system have been determined to be unsatisfactory. • Instruction to the Plant Clearance Officer to accept inventory schedules when contractors report similar, bulk material in lots and identical-description, non-capital (valued under $100,000) equipment is reported in multiple quantities to the greatest degree possible.

13. Exchange Sale Background • Under the Exchange Sale authority authorized in 40 USC 503 and 41 CFR 102-39, NASA may retain proceeds from exchange sale and apply the proceeds to acquisition of similar replacement items • NASA intends to use the exchange sale authority to retain proceeds from sale of personal property associated with SSP and use the proceeds to acquire similar assets for CxP • GSA confirmed that transition from SSP to CxP meets the 41 CFR 102-39 requirement for acquisition of similar property

14. Exchange Sale • Potentially up to 500,000 line items of Space Shuttle Program are eligible for exchange/sale. • Exceptions are historic items, donated property, and some items requiring special handling due to security or export control or hazardous considerations.

15. What does this mean to you….Joe or Josephine Citizen? • $ savings in the SSP disposition process • Greater exposure to SSP artifacts through museums, displays, etc • Chance to obtain a piece of space history?

16. Questions?