CONTRACT
NASI-98108
(Financial
Reports)
The Monthly Financial Management Report (NASA Form 533M) is exempt from
disclosure except for the total or “bottom line” hours and direct
labor cost figures
and descriptive
information at the top of the form.
The deleted material
is exempt from disclosure under 14 C.F.R. 1206.300 (b) (4)
which covers trade secrets and commercial
or financial
information obtained
from a person and privileged
or confidential.
It has been held that commercial
or financial matter
is “confidential”
for purposes of this exemption
if its disclosure
would be likely to have either of the following effects:
(1) impair the
Government’s
ability to obtain necessary
information
in the future; or (2) cause
substantial
harm to the competitive position of the person from whom the
information was obtained, National Parks and Conservation
v. Morton, 498 F2d
765 (D.C. Cir. 1974).
If NASA should release the negotiated
financial
information, which is
considered
to be company “confidential, ” the result could be that contractors
would refuse to negotiate such agreements on the basis that the firm’s pricing
structure and sub-elements
of cost would be made available
to its competitors.
Furthermore,
disclosure would discourage other companies
from participating
in the negotiation of similar advance agreements
regarding
the limitation of
certain cost items and billing rates.
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