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When entering into a partnership, it is essential to carefully evaluate the financial aspects to ensure the successful completion of SAA's and other agreement types. Financial considerations encompass various factors such as investment requirements, EPRs, full costs, Fair Market Values (FMV), waived costs and other commonly used authorities and financial provisions.
Click here to view more on financial considerations.
What is a Waived Cost?
Waived Costs refer to expenses incurred for the execution of work outlined in a reimbursable agreement. However, in cases where the partner does not reimburse NASA due to a clear and demonstrated NASA benefit, these costs are considered waived. The NASA benefit should be quantifiable, allowing for a reasonable estimation and comparison with the unreimbursed costs. Appropriated funds from NASA are then utilized to cover the waived costs, resulting in a price adjustment.
It's important to note that waivers will not be granted solely based on perceived intangible benefits, such as goodwill, community relations, or philanthropic reasons. NASA considers cost waivers only when its appropriated funds align with the specific activity in question. To make this determination, the agreement initiator should collaborate closely with the funding organization, Center OCFO, and Center Chief Counsel's office.
Agreements requiring waived costs must be accompanied by an Estimated Price Report (EPR), serving as the official waiver request and approval document. The EPR includes a justification for the NASA benefit and outlines the estimated cost elements of the reimbursable activity. (For more detailed information, refer to NPR 9090.1 Reimbursable Agreements, Section 2.3.4 Estimated Price Reports).
Any agreement with Waived Cost requires an Abstract to be approved by Headquarters Partnership Office.
Agreement Managers
How Do I Know If My Agreement has Waived Costs?
To determine whether your agreement involves waived costs, inquire with your NASA Technical Point of Contact (TPOC) who can investigate and provide relevant information.
For more information on the Waived Cost Process, please refer to the Costs page.
My Agreement Has a Waived Cost, What Is the Next Step?
If you've determined the need for a waived cost, consult with both your NASA TPOC and Resource Analyst.
For additional questions or concerns reach out to a member of the agreements team!
Resource Analyst
Executing EPR for Direct Cost Waiver
Executing EPR for Direct Cost Waiver
Once the Agreement Manager/NASA TPOC confirms the approval to waive direct costs, execute the EPR in the AEPR system. Consult with the LA4 office for additional questions or concerns.
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