HQ AFMC/PK

4375 Chidlaw Road, Suite 6

Wright-Patterson AFB OH 45433-5006

Interim Policy Letter (IPL) 96-007

EFFECTIVE DATE/IMPLEMENTATION: The AFMCFARS changes included in this letter are to be incorporated in solicitations issued on or after the date of this IPL. Incorporate these changes in solicitations issued prior to the date of this IPL if such incorporation will not delay award. This Interim Policy Letter will be superseded by AFMCAC 96-3, anticipated publication date Mar 96. Assure distribution to all Contracting Officers.

1. This IPL implements the following approved cases:

a. Additions and revisions to Content, AFMCFAR 5306.303-2; Justification Review Document, AFMCFARS 5306.303-290; Agency Head Responsibilities, AFMCFARS 5307.103; Simplified S&T Acquisition Plan Format, AFMCFARS 5307.105-90 and Broad Agency Announcements, AFMCFARS 5335.016 (Case 95-40. This is not a Lightning Bolt case). The simplified AP/J&A format was created under the auspices of the Laboratory Demonstration Program to specifically address acquisition planning pertinent to S&T projects and to eliminate systems acquisition-related information. It was approved as a three-year deviation to AFFARS and is now being incorporated into the AFMCFARS. The format provides relevant acquisition planning information needed by S&T acquisition decision makers. Use the simplified S&T format for all S&T (6.1, 6.2, 6.3A) acquisitions under $100 million. (Attachment 1)

b. Changes to General Policy, AFMCFARS 5319.201 (Lightning Bolt Case 96-19). Changes delete AFMCFARS coverage of small business coordination levels and rely on the thresholds established by DFARS and AFFARS. Also included is coverage for small business coordination, DD Form 2579, involving Special Access Programs (SAPs). (Attachment 2)

c. Additions to Evidence of Shipment on Foreign Military Sales (FMS) Contracts, AFMCFARS 5325.7390 and 5352.225-9013 (Ligtning Bolt Case 96-95). Due to the problems researching Reports of Discrepancy (RODs), particularly tracking the actual delivery to the customer country, the clause requires a copy of the carrier's receipt be provided to the contracting office for maintenance in the contract file. (Attachment 3)

d. Additions and revisions to Issuing a Solicitation without Certified Funding, AFMCFARS 5325.7300-91, Policy for Funding Contracting Action, AFMCFARS 5332.702-90 and 5352.232-9001 (Lightning Bolt Case 96-93) Originally proposed as an FMS clause, this clause was rewritten to a generic version. The clause advises offerors that funds have not been received for the requirement and that any costs incurred to respond to the solicitation are at the offeror's risk. (Attachment 4)

e. Additions to Commercial Bill of Lading Shipments-Carrier's Rates, AFMCFARS 5347.104-4 and 5352.247-9004 (Lightning Bolt Case 96-92). These changes establish a requirement for contractors to advise the Cognizant Transportation Officer (CTO) of the shipment rates which are proposed for the delivery. The CTO can compare these rates with other known rates and advise the contractor when better rates are available. (Attachment 5)

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 95-40

2. AFMC FAR Case 96-19

3. AFMC FAR Case 96-95

4. AFMC FAR Case 96-93

5. AFMC FAR Case 96-92

5306.303-2 Content.

(a) (92) J&As for less that $10M may utilize local formats and may incorporate information by reference unless specifically prohibited by the approving official. AFMC Form 551, Individual Justification and Approval for Other Than Full and Open Competition (Replenishment Spares up to $10M-Exception 1) may be used for replenishment spares acquisitions of less than $10M in accordance with the instructions contained in AFMCI 23-102, Purchase Request (PR) Operations (IMB)(Oct 94), Chapter 4. For science and technology (S&T) acquisitions under $100M, use the J&A format and cover page at AFMCFARS 5307.105 (91), Figures 5307-2 and 5307-4.

(a) (93) For actions requiring the approval of the Senior Procurement Executive (SPE), the J&A format will be substantially the same as shown in Figure 5306-3. The contracting office shall be OPR for preparation of these documents. For S&T actions under $100M, use the J&A format and cover page at AFMCFARS 5307.105 (91), Figures 5307-2 and 5307-4.

5306.303-290 Justification Review Document.

(91) The JRD will be substantially the same as shown in Figure 5306­4. The J&A cover page at AFMCFARS 5307.105 (91), Figure 5307.4, serves as the JRD for S&T acquisitions under $100M.

5307.103 Agency Head Responsibilities.

(e)(90)(iii) Basic research under budget category 6.1.

(e)(91) For basic research (6.1) acquisitions under $100M requiring SPE approval, and for science and technology (S&T) acquisitions under $100M using 6.2 or 6.3 funds, prepare acquisition plans in accordance with the simplified format under AFMCFARS 5307.105 (91). The simplified format (with cover pages) provides for all signatures, coordinations, and approvals required for S&T acquisition plans under $100M.

(g) (1) (90) For Other Contracting, except S&T actions under $100M, all APs exceeding $15 million shall be coordinated with the Senior Center Contracting Official (SCCO). S&T APs under $100M shall be prepared and coordinated in accordance with AFMCFARS 5307.105 (91).

(g) (1) (91) For Other Contracting actions, except S&T actions under $100M, the Center Commander shall approve all APs below the SPE threshold but may redelegate approval authority below $25 million. The PCO shall forward a copy of the approved AP to HQ AFMC/PKA for informational purposes. S&T APs under $100M shall be prepared and coordinated IAW AFMCFARS 5307.105 (91).

(g) (5) (90) For Other Contracting actions, except S&T actions under $100M, APs requiring SPE approval shall also be signed by the SCCO. In addition, the Center Commander shall also sign the AP before submitting the AP for SPE approval. S&T APs under $100M shall be prepared and coordinated IAW AFMCFARS 5307.105 (91).

5307.105 Contents of Written Acquisition Plans.

5307.105-90 Simplified S&T Acquisition Plan Format.

(a) Use the simplified format under Figure 5307-2 for all S&T acquisition plans and combined AP/J&As under $100M. The simplified format includes two cover pages--one for full and open competition (Figure 5307-3) and one for other than full and open competition (Figure 5307-4). When other than full and open competition applies, the cover page under Figure 5307-4 also serves as the justification review document (JRD) (see AFMCFARS 5306.303-2 (a) (92) and (93) and 5306.303-290 (91)). For acquisitions requiring SPE approval, the Technology Executive Officer (TEO) must sign the AP (or combined AP/J&A) after Laboratory Commander/Director coordination. For actions under the SPE threshold, the Laboratory Commander/Director may delegate AP/J&A signature authority to the two-letter Technical Director, or lower, in accordance with




Atch 1 local procedures. If the action is a combined AP/J&A between $1M and $10M, the cover page must be signed by a general officer or a member of the Senior Executive Service (SES) (see FAR 6.304). All signature/coordination blocks should include name, rank/grade, office symbol, and DSN telephone number.

(b) Send all simplified S&T APs and combined AP/J&As (and updates and amendments) requiring SPE approval to HQ AFMC/PKT for review. HQ AFMC/PKT will coordinate with HQ AFMC/PKA and obtain TEO signature before forwarding to SAF/AQCS for further processing.

5335.016 Broad Agency Announcements

(90) (b) In the laboratories and AFOSR the Contracting Officer must document the file that the requirement is appropriate. For other than a laboratory or AFOSR, the Program Director, or a designee (not below a Colonel or GS-15), and the Senior Center Contracting Official (SCCO), or a designee, shall coordinate on the requirements and document in the file that the announcement is appropriate.



Simplified S&T Acquisition Plan and Combined AP/J&A Format

(For S&T actions under $100M)

A. ACQUISITION BACKGROUND AND OBJECTIVES

1. BACKGROUND

a. Program Name:_______________________________________________________

b. Laboratory:_________________________________________________________
c. Program Management Directive No. and date:__________________________

Other program direction (e.g., TAP, TIP, Roadmap):________________ d. Basic contract period of performance _______________________________

Option(s)_________________________________________________________

e. Estimated total program/project cost: $____________________________

f. Acquisition Strategy Panel (Attach minutes):

Chairperson_______________________________

Date______________________________________

2. PROGRAM/PROJECT INFORMATION

a. Statement of need: Include a brief statement of the requirement for this effort.

b. Effort Description: Provide a brief general description of project/program including the technical objectives, approach, and duration of the effort. Summarize the technical and contractual history of the acquisition. What is the relationship of this effort to Air Force operational and mission requirements? What is the expected application of this technology? When applied, how will the technology improve current capabilities?

c. Acquisition Alternatives: Discuss feasible acquisition alternatives and related in-house efforts.

d. Applicable Conditions

(1) Effort to be acquired is (check one):

____ Research (normally 6.1 funded)

____ Exploratory Development (normally 6.2 funded)

____ Advanced Development (normally 6.3A funded)

(2) Highest security classification is _________________________

(3) Will research involve human or animal subject usage?________

(4) Identify government furnished property, base support or

contractor acquired property associated with this

acquisition:_______________________________________________

(5) Identify regulated hazardous materials or significant/

controversial environmental issues associated with this

project:___________________________________________________

(6) Will a final technical report be required?_________________

(7) Identify computer hardware/software to be delivered under

the contract(s):_____________________

3. RISK

a. Risk Assessment. Indicate with an X.

Risk ____Low___________________ Moderate___________________High_______

Technical |____________|____________|____________|____________|____________|

Cost |____________|____________|____________|____________|____________|

Schedule |____________|____________|____________|____________|____________|

Other |____________|____________|____________|____________|____________|

b. Main Risk Driver(s). Identify overall program risk and briefly discuss what drives it and why (see above chart).

B. PLAN OF ACTION

1. BUDGET/COST INFORMATION

a. Budget. For Air Force funds, provide the following totals for the project. If more than one type of funding is used (e.g., 3600 and 3400), provide the information for each type in separate tables.

FYXX FYXX FYXX

Type Money/Program Element ID

Approved Funding Amount

Required Funding Amount

Difference

Identify any shortfall in available or programmed funding, including a description of actions to resolve the shortfall. Also, show by appropriation and year when each type of funds will be obligated, liquidated, and canceled. In addition, discuss contingent liabilities (GFP repair costs, patent indemnity, data rights infringement, contract close-out costs, etc.) and proposed actions to identify and fund unexpected shortfalls.

If more than one type of funding is to be used, briefly describe the reasons why.

b. Funding Sources:

(1) Air Force: $____________________

(2) Other Services: $____________________

(3) Other (Identify): $____________________

(4) Will contract be incrementally funded? ___________________

c. Cost

(1) Estimated Total Contract Cost(s): $____________________

(2) Estimated Other Costs (provide

brief description): $____________________

(3) Total Program/Project Cost: $____________________

2. MILESTONES FOR THE ACQUISITION CYCLE

Indicate the date for the following milestones: acquisition plan/J&A approval, solicitation release, proposal receipt, proposal evaluation complete, negotiation conclusion, contract award, significant performance milestones, and contract completion.

3. BUSINESS

a. Potential source(s). List each source and indicate whether it is: small business, large business, small disadvantaged business, nonprofit, not-for-profit, educational, or labor surplus area concern. (If list is lengthy, include as an attachment.)

b. Competition. Full and open competition: Yes______ No______

(1) If full and open competition, check as appropriate:

(a)_____Source selection IAW AFMCFARS Appendix BB,

Section F. SSA:___________________

(b)_____BAA

(c)_____PRDA

(d)_____Other source selection procedure (identify)_________

(2) If other than full and open competition:

(a) FAR 6.302 authority:___________________________________

(b) Required due to contractor's unique qualifications, as

follows:____________________________ or due to the

nature of the acquisition, as follows: ________________

(c) CBD Notice (IAW Subpart 5.2): Publication date

______________________or FAR 5.202 exception___________

(d) Indicate how market survey was accomplished:

i. Commerce Business Daily notice publication date

________________________________

ii. Other market survey_____________________________

iii. Firms indicating interest (include reasons for

excluding them): _____________________

(e) Provide the following information when using one of the

exceptions below:

i. FAR 6.302-1(a)(ii): An estimated duplicate cost

to the government is $_______________ (include how

estimate was derived), or unacceptable delays

are______________________

ii. FAR 6.302-2: The estimated extent of harm to the

government is $___________________ and rationale

as to nature of harm is___________________________

(f) Briefly describe the basis for determining the

estimated price to be fair and reasonable.

(g) Briefly describe any efforts to remove or overcome

barriers to competition for subsequent acquisitions.

c. Contract/Business Information

(1) Number of contracts to be awarded___________________________

(2) For each contract, provide:

(a) Contract description__________________________________

(b) Estimated value $____________________________________

(c) Will a letter contract or other undefinitized action

be used?____________________________

(d) Anticipated BAA/PRDA CBD publication date_________

N/A_________

(e) Contract type: CR_____ CPFF _____ CPIF _____

CPAF _____ Other___________________

Contract form: completion _____ term _____

combination _____

(f) Incentives (or award fee) will be related to:

Cost_____ Technical Performance_____ Schedule______

Other _____ N/A _____

(g) Share ratio(s) will be________________N/A_____________

(h) Number of options and estimated value, if applicable:

_________________________________

(i) Will this be a task order contract?___________________

(j) Other significant contract features or requirements

are________________________________

(k) Technical data rights desired: Unlimited_____

Limited_____

Government Purpose License Rights_____ N/A_____

(l) Noncommercial computer software (NCS) rights desired:

Unlimited______ Restricted______

Government Purpose License Rights______ N/A______

(m) NCS documentation rights desired: Unlimited ______

N/A _____

(n) Commercial computer software rights desired:

Customary license ______ N/A ______

Figure 5307-2

SCIENCE AND TECHNOLOGY (S&T) ACQUISITION PLAN COVER SHEET

(For Full and Open Competition)

(For S&T actions under $100M)

Laboratory (or other S&T location):

Program Name:

Program Element:

Acquisition Plan Number:

Date:

Prepared by: Program Manager:

Name: Name:

Rank/Grade: Rank/Grade:

Office Symbol: Office Symbol:

Phone Number: Phone Number:

I have reviewed this document and believe it is accurate and complete. I agree with the proposed acquisition approach.


_______________________ ______________________________

Contracting Officer Technical Director

(or other title as appropriate)

If greater than $25M--

Coordination: Approval:

_______________________ ______________________________

Director of Contracting Assistant Secretary of the Air Force (Acquisition)

_____________________________

Laboratory Commander/Director


____________________________

Technology Executive Officer


Figure 5307-3

SCIENCE AND TECHNOLOGY (S&T) ACQUISITION PLAN COVER SHEET

(Acquisition Plan/Justification for Other than Full and Open Competition)

(For S&T actions under $100M)


Laboratory (or other S&T location):

Program Name:

Program Element:

Acquisition Plan Number:

Date:

Prepared by: Program Manager:

Name: Name:

Rank/Grade: Rank/Grade:

Office Symbol: Office Symbol:

Phone Number: Phone Number:

I have reviewed this document and believe it is accurate and complete. I agree with the proposed acquisition approach.

The Contracting Officer hereby determines that the anticipated cost of the proposed acquisition is fair and reasonable and certifies that the justification for this action is accurate and complete.

The Technology Director hereby certifies that the data provided by the technical office in support of the justification for this proposed acquisition is accurate and complete.

_________________________ _________________________

Contracting Officer Local Legal Reviewer

__________________________ ______________________________

Local Competition Advocate Technical Director

(or other title as appropriate)

If greater than $10M--

Coordination:

____________________________

Technology Executive Officer

_________________________

Director of Contracting

Approval:

_____________________________ ____________________________________

Laboratory Commander/Director Assistant Secretary of the Air Force

(Acquisition)

Figure 5307-4

5319.201 General policy.

(c)(9)(A) The Small Business Specialist (SBS) shall review all small business, small purchase set-aside acquisitions in excess of $10,000 except operational acquisitions. For special access programs (SAPs), the cognizant buyer and PCO must complete DD Form 2579, Small Business Coordination Record. The Buying Office Contracting Official (BOCO) will review and coordinate on the DD Form 2579 in those instances where the Small Business Specialist and the SBA/PCR are precluded from the review process due to Security Classification. Disagreements on the suitability of SAP requirements for small business will be elevated to the Senior Center Contracting Official (SCCO) for resolution.


















































Atch 2

5325.7390 Evidence of shipment on Foreign Military Sales (FMS) contracts.

(90) The contracting officer shall insert the clause at 5352.225-9013, Evidence of Shipment for Foreign Military Sales (FMS) Contracts - Carrier's Receipt, in Section I of all solicitations and contracts for FMS requirements. The copy of the carrier's receipt shall be placed in the official contract file.

5352.225-9013 Evidence of Shipment for Foreign Military Sales (FMS) Contracts - Carrier's Receipt

As prescribed at 5325.7390(90), insert the following clause in Section I of FMS solicitations and contracts:

EVIDENCE OF SHIPMENT FOR FOREIGN MILITARY SALES (FMS)

CONTRACTS - CARRIER'S RECEIPT (JAN 1996)

The contractor shall send a copy of the carrier's receipt to (insert the contracting office and_address).

(End of Clause)









































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Part 5325 -- FOREIGN ACQUISITION

SUBPART 5325.73 -- ACQUISITIONS FOR FOREIGN MILITARY SALES

5325.7300-91 Issuing a solicitation without certified funding.

When a solicitation for an FMS requirement is to be issued in advance of a firm and funded requirement, including receipt of a signed Letter of Offer and Acceptance (LOA) from the country, the contracting officer shall insert the provision at 5352.232-9001, Notice of Funding Status, in the solicitation.




















































Atch 4

PART 5332--CONTRACT FINANCING

SUBPART 5332.7--CONTRACT FUNDING

5332.702 Policy.

5332.702­90 Policy for funding contracting actions (other than Operational Contracting ­ see AFFARS 5332.790).

(a) Contracting activities will not sign and distribute any contractual instruments which obligate funds until sufficient funds are certified as available by the Accounting and Finance Office (AFO) or any other appropriate funds control manager.

(b) One of the conditions in (1) through (5) below must be satisfied before a solicitation is issued. Include the provision 5352.232-9001, Notice of Funding Status, in Section L of the solicitation when applicable.

(1) Funds have been certified as being available.

(2) Funds will be obligated by delivery orders and not by a contract resulting from the solicitation.

(3) The solicitation is for an incrementally funded R&D or O&M contract before assurance of funds availability and the initiating and approving authorities determine that the requirement will probably not be canceled. However, issue no solicitation until a purchase request (PR) is received with the comptroller or designee's signature along with the following statement: "FY (Year/Dollar value) funds apply to this requirement. No obligation may be incurred until FY (Year/Dollar value) funds availability has been certified. Request solicitation contain the appropriate offer expiration legend."

(4) The solicitation is for an FMS requirement and issued in advance of a firm and funded requirement, including Letter of Acceptance.

(5) The PEO for major or selected programs, or the DAC or designee for other programs and major programs not assigned to a PEO, has approved an exceptional situation before program approval or formal funding requirement.

(c) Consider the Government solicitation preparation administrative expense and the offerors' bid/proposal expense when issuing solicitations under (2) through (5) above. These authorities shall not permit indiscriminate solicitations subject to the availability of funds; nor will they permit soliciting subject to the availability of "windfall" or "hoped for" funds. These authorities are to be used only in those cases where the requirements, (2) above, and availability of funds for obligation within the offer acceptance time, (3) through (5) above, are reasonably assured.

(d) Except as authorized in (b)(5) above, fully fund all urgent PRs sent to any other Air Force activity, regardless of dollar amount.

5332.703. Requirements for contract funding.

5332.703­90. Committing funds and processing purchase requests (PRs and MIPRs).

This subsection prescribes funding procedures for all contracting actions other than Operational Contracting. Procedures for funding PRs and MIPRs before release to the contracting office are contained in AFMCR 57­7. Other related detailed funding procedures are in respective procedures for requirements management, comptroller, etc., areas of responsibility (AFR 177­120 and AFMCM 172­1).

5352.232-9001 Notice of Funding Status.

As prescribed at 5325.7300-91 and 5332.702-90, insert the following provision in Section L of the solicitation:

Notice of Funding Status (JAN 1996)

Funds are not currently available for this requirement. Offerors are advised that the cost of any response to, or other cost incurred as a result of, this solicitation is at the offeror's own risk. Unless funds are made available for this requirement, no contract will be awarded.

(End of Provision)

PART 5347--TRANSPORTATION

SUBPART 5347.1--GENERAL

Paragraph Title Page

5347.104-4 Contract Clauses 47.1-1


PART 5347--TRANSPORTATION

SUBPART 5347.1--GENERAL

5347.104-4 Contract Clauses

(a) The Contracting Officer shall insert the clause at 5352.247-9004, Commercial Bill of Lading Shipments - Carrier's Rates, in Section F of all cost-reimbursement and fixed-price with F.O.B. origin solicitations and contracts incorporating FAR 52.247-1, Commercial Bill of Lading Notations. (see FAR 47.104-4(b)).

5352.247-9004 Commercial Bill of Lading Shipments - Carrier's Rates.

As prescribed in 5347.104-4(a), insert the following in Section F of the solicitation and resultant contract:

Commercial Bill of Lading Shipments -

Carrier's Rates (DEC 1995)

Before making any shipment, the contractor shall ensure that the proposed carrier offers acceptable service at reduced rates under Interstate Commerce Commission Section 10721, if available, or other rate schedule of equal or lower rates. In order to comply with this requirement, the contractor shall contact the transportation officer for this contract, as identified by the Administrative Contracting Officer, for confirmation that the proposed carrier's rates are no higher than those otherwise available to the government. The contractor shall separately list the shipping costs on the invoice to the government and attach a copy of the carrier's billing. Failure to properly annotate the invoice and provide a copy of the carrier's billing may result in those costs not being reimbursed or only partially reimbursed.

(End of Clause)






Atch 5