PREFACE

Under the authority of NASA Handbook 1101.3, The NASA Organization,and in accordance the Federal Acquisition Regulation (FAR) Subpart 44.3, “Contractors Purchasing Systems Reviews” and NASA FAR Supplement 1844, the National Aeronautics and Space Administration (NASA), Headquarters Office of Procurement conducted a Contractor Purchasing System Review (CPSR) of the California Institute of Technology, Jet Propulsion Laboratory (JPL), a Federally Funded Research and Development Center (FFRDC).

A contract was awarded between NASA and the California Institute of Technology (Caltech), a private nonprofit educational institution, which establishes the relationship for the operation of the JPL FFRDC.  It serves as the sponsoring agreement between the two parties.  As the operator of JPL, the contractor is responsible for fiduciary responsibilities in managing Government resources in support of NASA Prime Contract, number NAS7-03001.

The objective of this review, in accordance with FAR Subpart 44.301, is to “evaluate the efficiency and effectiveness with which Caltech spends Government funds and complies with Government policy when subcontracting.”  The results of the review, described in this report, were provided to the administrative contracting officer (ACO)/Procurement Officer, at the NASA Management Office.  The review (and subsequent report) “provides the ACO a basis for granting, withholding, or withdrawing approval of the contractor’s purchasing system” in accordance with FAR Subpart 44.301.

An integrated team approach was utilized to conduct the CPSR.  The team was led by NASA Headquarters Office of Procurement representatives and included members from the NMO at JPL; representatives from Center procurement organizations; Defense Contract Management Agency, Dallas, TX; NASA Headquarters Office of Small Business Programs; and NASA Contract Assurance Services contract representatives.  Attachment 1, Office of Small Business Programs Report; Attachment 2, Defense Contract Management Agency Report; and Attachment 3, NASA Contractor Assurance Report are incorporated into this document.

The CPSR was conducted from April 21 through May 1, 2008.  An entrance conference was conducted with CPSR team members, NMO management, key members of the JPL Acquisition Division management, and members of the JPL Audit Liaison and Quality Assurance offices.

An exit briefing was conducted to discuss the CPSR findings at the end of the review. 

This report serves as a basis, in part, for fulfilling internal control requirements in accordance with the Federal Manager’s Financial Integrity Act of 1982  (P.L. 97-255).  Unless permission is received from the ACO, this report shall only be distributed in accordance with FAR Subpart 44.307.  The release of this report is governed under the Freedom of Information Act, 5 U.S.C. 552.

Any findings in this report should not be considered as technical direction from the Government.

Yolande Harden, Program Manager
JPL Contracting Purchasing System Review
NASA Headquarters, Office of Procurement

For information about the findings please contact the Procurement Officer at the NASA Management Office, Rebecca Wilkinson, (818) 354-2595.