NAC Assessment Questions

The NAC assessment is the primary means of raising revenue to pay for the operations of the consortium. These operations include administrative and member support activities, industry days, membership meetings, business development, customer outreach, training, process improvement initiatives, and website management. In addition to the foregoing member benefits, the assessments support member-only access to the growing NAC-DOTC armaments data repository with enhanced data mining and member networking capability.
Per Section 3.3.2 of the NAC Consortium Membership Agreement, “Each NAC Member Organization receiving an Ordnance Technology Initiative Award, or incremental funding for an existing award, is subject to an award assessment. This award assessment shall not exceed one percent (1%) of the authorized contract value. This assessment percentage will be evaluated by the NAC Executive Committee on a periodic basis and may be adjusted by Executive Committee Resolution from time-to-time in order to maintain a reasonable NAC operating reserve.”
Effective October 1, 2018, the NAC Assessment is 0.15% of all awarded funding (not ceiling).
No, per the DOTC Base Agreement, this assessment is not a Government requirement and is not an allowable direct cost on any Ordnance Technology Initiative Agreement.
Yes, the assessment can be included in your profit/fee as the use of an organization’s fee is its own business decision. However, there is no need to break out the proposed fee in order to show the assessment in a cost proposal.
Yes, the assessment may be included as part of your indirect rate structure (e.g. with the G&A pool). Because of organizations’ differing regulations, disclosure practices, and polices, NAC cannot provide advice on the specific calculations or appropriateness of this approach for individual NAC members.
No, because of the mechanics of the Other Transaction Agreement, the CMF is unable to utilize these other methods. The member must pay the assessment directly to the NAC through the CMF per the instructions on the invoice. The invoice will be sent to the NAC member Primary POC, the NAC member Financial POC (if provided), and the Initiative’s Technical and Contractual POCs. Please contact the CMF if additional POCs are required for your initiative.
Yes, the funding generated from the NAC Assessments is used to support the administration and management of NAC affairs, while the DOTC Administration Costs support administration of the Other Transaction Agreement. The DOTC Administration Costs are paid by the government.