HQ AFMC/PK

4375 Chidlaw Road, Suite 6

Wright-Patterson AFB OH 45433-5006

Interim Policy Letter (IPL) 96-006

EFFECTIVE DATE/IMPLEMENTATION: The AFMCFARS changes included in this letter are to be incorporated in solicitations issued on or after 1 Dec 95, and in solicitations and contracts issued before 1 Dec 95 if such incorporation will not delay award. This Interim Policy Letter will be superseded by AFMCAC 96-2, anticipated publication date Feb 96. Assure distribution to all Contracting Officers.

1. This IPL implements the following approved Lightning Bolt (LB) #4 cases:

a. Additions to Incorporation of Contractor Technical Proposal, AFMCFAR 5315.614-90, 5352.215-9019 and 5352.215-9020 (Case 96-110). This a clause, solicitation provision and implementing instructions are for use when incorporation of a contractor's technical proposal in contracts is contemplated. The clause specifies that in the event of conflict between a contractor's own technical proposal and the contractor generated statement of work and specifications, such conflict is resolved by clarifying that nothing contained in the contractor's technical proposal constitutes a waiver of any other requirement of the contract. This clause establishes the contractor's technical proposal in relation to the order of precedence as determined by the PCO. Additionally, this clause provides language to protect the government from having to pay for updating contractor written and contractually incorporated documents which were changed during the negotiations and not updated prior to award of the contract. This clause specifies that such changes are administrative and require no change to contract terms such as cost or price. (Attachment 1)

b. Additions to Placement and Maintenance Responsibility for BOAs, AFMCFAR 5316.703-91 (Case 95-38). This was a case from the previous fiscal year, not a Lightning Bolt case. At present time, the ALCs management of BOAs is still operating under the rules established under rescinded AFLC regulations. When AFLC and AFSC merged to become AFMC, geographical boundaries and maintenance of BOAs were not addressed in AFMCFARS. This change formally establishes the placement and maintenance of BOAs. The ALCs will continue to issue BOAs based on geographical areas as prescribed in Figure 1. Relative to foreign contractors, each ALC shall treat their BOAs as "specialized" and within the management oversight of the ALC issuing the contract. HQ AFMC decided that each ALC will establish its own criteria for issuance of BOAs, as well as length of the ordering period and timing to update BOAs. (Attachment 2)

c. Additions to Clauses for Limitation of Cost and Funds, AFMCFAR 5332.705-2(b) and 5352.232-9000 (Case 96-139). This prescription and clause ensures that when allotting funds to incrementally funded cost-reimbursement contracts the distinction as to which amounts are allotted for payment of costs and which are allotted for the payment of fee is expressed in the schedule of the contract. This implements paragraph (b) of FAR clause 52.232-22, Limitation of Funds, as well as FAR clause 52.216-8, Fixed Fee, which provides for fee withholding after 85% of the fee has been paid. There is no higher coverage which provides this vehicle for specifying cost/fee allotments in the contract schedule. Use of this clause ensures that each allotment to a contract addresses the cost/fee distinction. (Attachment 3)

d. Revisions and additions to AFMC Base Services Acquisitions and AFMC Manpower Support Services, AFMCFARS Part 5337 (Case 96-58). This case makes a minor change to Subpart 5337.91 by eliminating reference to an outdated regulation. This case makes numerous changes of varying significance to Subpart 5337.92. It incorporates eleven of nineteen recommended center cases, which were originally consolidated into Case 96-58. Of the remaining eight center cases, three were eliminated and five were incorporated into other LB#4 cases. This case also incorporates ten changes recommended by the Manpower Support Services (MSS) Process Effectiveness Review (PER) Report (PN 94-30, 20 Jan 95), makes miscellaneous wording improvements, and revises references for a number of updated and changed documents. Note: the AFMC FAR Council noted that Subpart 5332.92 contains more "how to" information than is normally included in the AFMCFARS. It was recommended that another document will be used for this information and it be removed from the AFMCFARS. This follow on effort will be completed during CY96. (Attachment 4)

e. Additions to Acquisition of Information Resources Policy, AFMCFAR 5339.001-90, and 5352.239-9000 through 9011 (Case 96-86). These provisions and clauses are incorporated into the AFMCFAR Supplement to provide guidance on the acquisition of Federal Information Processing (FIP) resources under the Brooks Act and the Nunn-Warner Amendment to the Brooks Act. (Attachment 5)

f. Additions to Government Property Clauses, AFMCFAR 5345.106(90)(h), 5345.205-90(d), 5345.302-6-90(f), 5352.245-9003, 5352.245-9004 and 5352.245-9005 (Case 96-63a). This case establishes three clauses/provisions which impact government furnished property. The first, AFMCFARS 5352.245-9003, "Contractor Responsibility for GFP" with prescription at 5345.106(90)(h), establishes and protects the government's rights when delivered line items are accepted in place at the contractor's facility and returned to the contractor as GFP to be incorporated into a separate deliverable item. The second, AFMCFARS 5352.245-9004, "Elimination of Competitive Advantage in the Use of Government Production and Research Property," with prescription at 5345.205-90(d), implements the guidance in FAR 45.201. The third clause standardizes the language included in solicitations and contracts to specify the facilities which are authorized for acquisition or fabrication under a contract other than a facilities contract. This case originally included a fourth clause, "Government Furnished Information", which has been consolidated under FAR Case 96-63b. (Attachment 6)

g. Additions to Government Property Clauses, AFMCFAR 5345.106(90)(i) through (l), 5345.310-92 and 5352.245-9006 through 9007 (Case 96-63b). Clauses 5352.245-9006 and associated Alternates I and II were derived from clauses used by WR-ALC, AFDTC, ESC, ASC, SA-ALC, WL, 38 LS/LGC, and SMC. They include contract and solicitation language for Government Furnished Property lists as permitted by FAR 52.245-2, Government Property (Fixed-Price Contracts), 52.245-4, Government Furnished Property (Short Form), and 52.245-5, Government Property (Cost-Reimbursement, Time-and-Material, or Labor-Hour Contracts). They also include provisions to specify Free on Board (F.O.B.) points for GFP, as permitted by FAR 52.247-55, F.O.B. Point for Delivery of Government Property. AFMCFARS Case 96-53, prepared by SA-ALC is consolidated into this case. Clause 5352.245-9006 and associated Alternate III, was derived from a clause used by ESC. It provides for listing Government Furnished Information to contractors. Clause 5352.245-9007 is used by SA-ALC and is intended for use when lots of materials are included in a contract line item price but are not fully consumed into the deliverable production items. It provides a means for the Government to recover that material already paid for under the contract but not otherwise deliverable to the Government.(Attachment 7)

h. Additions to Providing Government Property to Contractors, AFMCFAR 5345.306-5-90, 5345.307-3-90, 5352.245-9010 through 5352.245-9014 (Case 96-63c). These clauses deal with special tooling and/or test equipment. Clause 5352.245-9010 provides for the consideration of costs associated with the providing of special tooling during the evaluation of bids or proposals; clause 5352.245-9011 provides the means to allow contractors to use special tooling or test equipment, already accountable to them on a contract, on another contract; clause 5352.245-9012 provides for the inclusion of costs associated with special test equipment in the contact price or target cost; clause 5352.245-9013 allows the Government the option to provide items to contractors as GFP rather than pay the contractor to acquire or fabricate the same items; and clause 5352.245-9014 provides a means to specify contract requirements for "master tooling" and other special requirements. (Attachment 8)

i. Additions to Contractor Use and Rental of Government Property, AFMCFAR 5345.403-90, 5345.404-90, 5352.245-9008 and 5352.245-9009 (Case 96-63d). This AFMC FAR Case adds/elevates previous center MADES GFP clauses to the AFMC FARS to effect recommend-ations of DMR. These clauses provide Contracting Officer authorizations for use of any type Government owned property (including facilities) by contractors or their subs either on a rent-free or rental basis, as appropriate. Although FAR provides for these authorizations, there are no such clauses found in FAR. (Attachment 9)

j. Additions to AFMC Maintenance, Overhaul and Modification Contracting Provisions and Clauses, AFMCFAR 5392.203-90(a) through (c), 5352.292-9012, 5352.292-9013 and 5352.292-9014 (Cases 96-40a, b & c). The provision at 5352.292-9012 assists in the evaluation of offers for maintenance, overhaul and modification in indefinite quantity and requirements solicitations. The provision is used to notify offerors of the quantity to be used for evaluation when a Best Estimated Quantity (BEQ) will be employed. The provision at 5352.292-9013 assists in the evaluation of offers for maintenance, overhaul, and modification in indefinite quantity and requirements solicitations when the cost of relocating government furnished property from the incumbent contractor facilities to another source is to be evaluated. The provision notifies offerors of the cost factor to be used for evaluation of relocation of the government furnished property. The provision at 5352.292-9014 assists in the evaluation of offers for maintenance, overhaul and modification in indefinite quantity and requirements solicitations when assets may generate from multiple locations and the cost of transportation is to be evaluated. The provision notifies offerors that transportation will be evaluated based on probable points of generation from the field and return to the point of generation and/or supply point. (Attachment 10)

k. Additions to Foreign Disclosure Reviews, AFMCFAR Part 5393 (Case 96-106). Foreign Disclosure is moved from Part 25 (5325.91) to its own AFMCFARS part. It is now Part 5393. This action combines 15 Lightning Bolt #4 actions submitted by various AFMC contracting offices and a HQ AFMC effort to rewrite the material and move it to its own part. The primary areas of new material are subparagraphs 5393.003(a)(1), (e), (f), 5393.004, and the provisions and clauses. Other areas were rewritten in an effort to clarify the material. (Attachment 11)

2. If you have any questions, please call me or have your staff call either of my action officers, Ms. Chris Shockey or Mr. Wm. Michael Thompson, HQ AFMC/PKP, DSN 787-6757.



MILTON C. ROSS, SES

Acting Deputy Director of Contracting

1. AFMC FAR Case 96-110

2. AFMC FAR Case 95-38

3. AFMC FAR Case 96-139

4. AFMC FAR Case 96-58

5. AFMC FAR Case 96-86

6. AFMC FAR Case 96-63a

7. AFMC FAR Case 96-63b

8. AFMC FAR Case 96-63c

9. AFMC FAR Case 96-63d

10. AFMCFAR Case 96-40a,b & c

11. AFMCFAR Case 96-106