NASA to Contractors: Hey, Do You Have $10M Worth of Our Stuff?
Edwin Verin/Shutterstock.com
By
Frank Konkel
The U.S. space agency wants to make sure its government property is accurately accounted for.
This week, NASA proposed a new acquisition regulation that would require contractors with custody of $10 million or more in NASA-owned property, plant and equipment to report so monthly.
According to the Federal Register notice, NASA’s move to a monthly reporting requirement is to “ensure contractor-held [property, plant and equipment] are more accurately represented” in NASA’s financial statements. Ultimately, the recommendation came from third-party auditors.
“In order to ensure that PP&E are being presented fairly in the agency's financial statements, independent auditors recommended to NASA that the NFS policy regarding property financial reporting be revised,” the notice states.
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NASA property records from fiscal 2015 indicate 643 contracts include contractors that currently use NASA property, though only 32 feature NASA-owned and contractor-held PP&E of more than $10 million. Three such contracts with $10 million or more in PP&E are held by small businesses.
As such, it will be mostly large contractors that experience any increase in net paperwork, although NASA contends the impact should be minimal.
NASA will accept public feedback on the proposed rule change through Sept. 26.