INTERIM POLICY NOTICE

97-1

8 Oct 96

EFFECTIVE DATE/IMPLEMENTATION: The AFMCFARS changes included in this notice are to be incorporated in solicitations issued on or after 4 Oct 96. It will be superseded by the next edition of the AFMCFAR Supplement. Ensure distribution to all Contracting Officers.

1. This notice implements the following changes to the AFMCFARS:

a. Acquisition Plan Review and Approval, AFMCFARS 5307.103(h)(90), (91), and (93) (Thunderboom case 96-175). Changes acquisition plan review and approval thresholds to comply with the 18 Jun 96 SAF/AQ Acquisition Policy Memorandum 96A-006, Subject: Field Empowerment Through Increased Approval Thresholds. The AFMCFARS changes provide consistency between 96A-006 and the AFMCFARS. (Atch 1)

b. Source Selection Plan (SSP) Review, Source Selection Authority (SSA) Delegation, AFMCFARS APPENDIX AA, AA203b (Thunderboom case 96-176). This AFMCFARS coverage was eliminated to comply with SAF/AQ Acquisition Policy Memorandum 96A-006 "Field Empowerment Through Increased Approval Thresholds."

c. Individual Deviations, AFMCFARS 5301.403; Clearance Process, AFMCFARS 5301.90; Issuing Solicitations, AFMCFARS 5315.48 (Thunderboom case 96-177). The change to 5301.403 delegates individual deviation authority to the SCCOs pursuant to SAF/AQC Contracting Policy Memo 96-C-02, dated 21 Jun 96 and HQ AFMC/PK memo dated 25 Jun 96. Other changes, i.e., deletions, were made to this section consistent with AFMCFARS Rewrite guidance. The change to 5301.90 reflects the new clearance thresholds for Other Contracting pursuant to SAF/AQ Acquisition Policy Memorandum 96A-006, dated 18 Jun 96. It also reflects cancellation of AFMCI 64-109 on Solicitation Review Boards pursuant to AFMCF Publishing Bulletin 12 dated 7 Jun 96. Finally, it recognizes an alternate preliminary PMN format pursuant to HQ AFMC/PKPC memo dated 6 May 96, and provides guidance when the contract action involves best estimated quantities (BEQs). AFMCFARS 5315.408(90) is deleted as a result of the cancellation of the Solicitation Review Board (SRB) instruction AFMCI 64-109 noted in (b) above.

d. Ratification of Unauthorized Commitments, AFMCFARS 5301.602-3 (Thunderboom case 96-178). SAF/AQ letter, 18 June 1996, signed by Mr. Arthur L. Money, Assistant Secretary of the Air Force (Acquisition), approved changes to the acquisition approval process. It delegated authority to ratify unauthorized commitments for programs to the PEO or DAC. This change to AFMCFARS delegates authority to the center commanders to ratify actions for Other Contracting.

e. Undefinitized Contractual Actions (UCAs) AFMCFARS 5317.7403 (AFMCFARS case 96-184). In accordance with SAF/AQC Memorandum dated 20 Sep 96, Subject: Undefinitized Contractual Actions, AFMCFARS 5317.7403 is amended to delete any requirement for a proposal prior to an issuance of a UCA.

2. Refer questions to Mr. Kenneth Farr, HQ AFMC/PKPB, DSN 787-4657.


1. AFMCFARS Case 96-175

2. AFMCFARS Case 96-176

3. AFMCFARS Case 96-177

4. AFMCFARS Case 96-178

5. AFMCFARS Case 96-184


ATTACHMENT 1

AFMCFARS Case 96-175

5307.103(g)(1)(90)(a) For Other Contracting actions (Non Communications/Computer), all APs from $5 million to $50 million shall be reviewed by and coordinated with the Buying Office Contracting Official (BOCO) or Senior Laboratory Contracting Official (SLCO), and approved by the Single Manager (SM). APs from $50 million to $500 million in this category shall be reviewed by and coordinated with the Senior Center Contracting Official (SCCO) and approved by the center commander. APs $500 million and above in this category shall be reviewed by and coordinated with SAF/AQC and approved by SAF/AQ.

(b) For Other Contracting Communication/Computer actions not integral to a weapon system, all APs from $5 million to $15/30 million ($15 million or more in any FY or $30 million or more for all program years) shall be reviewed by and coordinated with the BOCO or SLCO, and approved by the SM. APs from $15/30 million to $100 million in this category shall be reviewed by and coordinated with the SCCO and approved by the center commander. APs from $100 million and above in this category shall be reviewed by and coordinated with SAF/AQC and approved by SAF/AQ.

5307.103(g)(5)(90) For Other Contracting actions, APs requiring SAF/AQ approval shall be signed by the BOCO, SLCO, or SCCO and the center commander before submitting the AP to SAF/AQC for review and coordination and SAF/AQ approval.

ATTACHMENT 2

AFMCFARS Case 96-176

AFMCFARS APPENDIX AA

AA 203b. (deleted)

ATTACHMENT 3

AFMCFARS Case 96-177

SUBPART 5301.4--DEVIATIONS FROM THE FAR

5301.403 Individual deviations.

(90) Authority is redelegated to the SCCO, without power of redelegation, to approve individual deviations from the FAR, DFARS, AFFARS, and this supplement for PEO and DAC Programs and Other Contracting.

(1) Obtain legal coordination on the deviation request prior to submittal to the SCCO for approval.

(2) The SCCO will submit a summary of individual deviations approved and disapproved to HQ AFMC/PK at the end of the fiscal year.

(91) Submit deviation requests for areas set forth in DFARS 201.402(1)(i) directly to SAF/AQCP.

5301.404 Class Deviations.

(90) Submit requests for FAR, DFARS, and AFFARS class deviations directly to SAF/AQCP. Submit requests for AFMCFARS class deviations to HQ AFMC/PKA.

SUBPART 5301.90--CLEARANCE PROCESS

5301.9000 Scope and applicability.

(b) This subpart does not apply to sealed bidding actions. Field activities will establish local review and approval procedures for all sealed bidding actions. AFMC clearance requirements for Other Contracting are established in 5301.9090 and Attachment 5301-90.

5301.9006 General requirements.

5301.9006-4 Determining the value of contract actions.

(90) Compute Attachment 5301-90 and AFFARS Attachment 5301-4 business clearance thresholds using the fully supportable negotiation objective inclusive of any requested settlement range (for noncompetitive actions), or using the highest proposed amount in the competitive range (for competitive actions), calculated in accordance with AFFARS 5301.9006-4. Compute Attachment 5301-90 and AFFARS Attachment 5301-4 contract clearance thresholds using the negotiated contract value, calculated in accordance with AFFARS 5301.9006-4. (Note: This guidance does not apply to defective pricing cases. In the case of post-award audit defective pricing findings, the final position of the auditor on the cost questioned shall be used to determine the value of the contract action for business clearance reviewing and business/contract clearance approving authorities.)

(91) When multiple awards are contemplated in competitive acquisitions, use the cumulative value of all potential contracts to determine the value of the contract action for business clearance. For example, the following multiple award scenarios would exceed a threshold of $50,000,000:

(1) Three individual awards resulting from a single solicitation, where each contract is for a separate item in the solicitation and each contract is valued at $20,000,000. Rather than making a single award for all items, such multiple awards result in the lowest aggregate cost to the Government, including assumed administrative costs.

(2) Two individual awards resulting from a single solicitation, where each contract is for a partial quantity of an item and one award is valued at $20,000,000 and one award is valued at $35,000,000.

(3) Four individual awards resulting from a single solicitation with a value of $100,000,000 (even if a value of $25,000,000 is established for each individual contract), where the purpose is to award identical contracts to all awardees to establish a commercial base that can be tasked to accomplish the required effort.

(92) When use of a Best Estimated Quantity (BEQ) approach is contemplated for evaluation or award purposes, use the sum of the maximum awardable value of the contract and options and other amounts as indicated in AFFARS 5301.9006-4, even if the maximum awardable value is higher than that associated with the BEQ.

(93) Guidance in paragraph (91) above does not apply to awards resulting from Small Business Innovation Research (SBIR), Broad Agency Announcements (BAA), or Program Research and Development Announcements (PRDA) solicitations. For these actions, use the individual contract value to determine the value of the contract action for business clearance.

5301.9006-8 Post-award review.

The SCCO or SLCO shall establish a post-award review program for contracts awarded by their activity, including offices supporting PEO and DAC Programs.

5301.9007 Solicitation review.

(a)(90) Solicitation review is not required for BAAs, PRDAs, and SBIR program procurements or Fast Track and High Gear Contracting (Subpart 5317.94).

(b) The supporting file consists of a copy of the approved Acquisition Plan, with a copy of the approved J&A and/or Source Selection Plan as applicable.

5301.9008 Content of the Request for Business Clearance (RBC).

(b)(2) If there is adequate price competition, and clearance is required to award without discussions, a Price Competition Memorandum (PCM) shall satisfy the AFFARS requirement. If low price is the only specified factor to be considered for award, the abstract may be used in lieu of a PCM.

(3) If the proposed contract or contractual document is not available at the time of business clearance as required by AFFARS 5301.9008(b)(3), coordinate with the reviewing authority's staff to determine if the business clearance can proceed without the document.

(90) For contract actions where HQ AFMC/PK is the BCRA, when the acquisition is a contract modification, provide a "conformed working copy" of the contract, up to the modification submitted for approval. A "conformed working copy" of the contract is a copy that incorporates all modifications to the contract and cross references the modification number.

(91) For contract actions where HQ AFMC/PK is the BCRA, a Business Clearance Retention File, consisting of a separate copy of the following "related documents" required by AFFARS 5301.9008(b), shall accompany the RBC:

(1) The final RFP (with amendments, unless it was reviewed by (and a copy furnished) headquarters under AFFARS 5301.9007, as supplemented;

(2) The preliminary PNM (PCM or abstract, as applicable, if required);

(3) The proposed BAFO request (as applicable);

(4) The business clearance session charts (as applicable); and

(5) The model contract or contract modification,(as applicable).

(92) Ensure that the request for business clearance documentation (e.g., briefing charts, paragraph 6 of the business clearance format, or contract file) contains budget/funding information on the availability of sufficient funds to cover the Government's anticipated present and contingent liabilities for the contract action under review.

(93) The preliminary PNM may be documented in either standard PNM format (portrait format, structured similar to the final PNM), or in presentation-style format (landscape, briefing chart format). If documented in presentation-style format, it shall combine the required content of the briefing requirements of AFFARS 5301.9010-5(b) and the content for establishing prenegotiation objectives at FAR 15.807 and AFFARS 5301.9008(b)(2).

5301.9009 NO CHANGE

5301.9011 NO CHANGE

5301.9012 NO CHANGE

5301.9012-1 NO CHANGE

5301.9012-3 NO CHANGE

5301.9090 AFMC Clearance Process for Other Contracting.

5301.9090-1 AFFARS applicability. The following AFFARS sections/subsections, as supplemented, apply to AFMC Other Contracting:

(a) AFFARS 5301.9001, Policy.

(b) AFFARS 5301.9002, Definitions.

(c) AFFARS 5301.9004, Business clearance standards.

(d) AFFARS 5301.9005, Contract clearance standards.

(e) AFFARS 5301.9006-3, Contracts requiring review and approval.

(f) AFFARS 5301.9006-4, Determining the value of contract actions.

(g) AFFARS 5301.9006-7, Relationship between the business clearance and source selection processes.

(h) AFFARS 5301.9006-8, Post-award review.

5301.9090-2 RESERVED.

5301.9090-3 Reviewing and approving authorities.

Clearance authorities are delegated to the individuals occupying the positions designated as reviewing or approving authorities in Attachment 5301-90. These authorities may not be redelegated except as specifically indicated in Attachment 5301-90.

5301.9090-4 Clearance procedures.

(a) Clearance procedures set forth in AFFARS 5301.9007 through 5301.9012, as supplemented, apply to contract actions of $50,000,000 or more.

(b) The Center Commander, through the Senior Center Contracting Official, shall establish appropriate internal business clearance and contract clearance procedures, consistent with AFFARS 5301.9006-6(a)(1) through (3) for actions less than $50,000,000.

ATTACHMENT 5301-90

REVIEW/APPROVAL AUTHORITIES

OTHER CONTRACTING

AUTHORITY LEVEL

ESTIMATED VALUE RFP/BCRA/CCAA BCAA

COMP NON-COMP

>$500M AFMC/PK(1) SSA(2) Center/CC(3)

>$50M & <$500M SCCO(4) SSA(2) Center/CC(3)

<$50M BOCO(5)/SLCO (6) SSA(2) SM(6)


NOTES:

(1) AFMC/PK may delegate these authorities to the Senior Center Contracting Official (SCCO) on a case-by-case basis. AFMC/PK shall notify the Center/CC of such delegation.

(2) In formal source selection actions (AFFARS Appendix AA/ Appendix BB), this is the individual designated as the source selection authority and responsible for the conduct of the entire source selection process. For other competitive actions, this is the individual responsible for selecting the source, e.g., the contracting officer.

(3) The Center/CC may delegate this authority to the SM.

(4) The SCCO may delegate these authorities to the BOCO/SLCO on a case-by-case basis.

(5) The term BOCO denotes the chief of a center 3-letter contracting office for clearance purposes only.

(6) These authorities may be delegated down one level except that actions below $5M may be delegated to a level no lower than the contracting officer.

SUBPART 5315.4--SOLICITATION AND RECEIPT OF PROPOSALS AND QUOTATIONS

5315.408 Issuing solicitations.

(90) Deleted

ATTACHMENT 4

AFMCFARS Case 96-178

5301.602-3 Ratification of unauthorized commitments.

(b)(3)(ii)(90) (deleted)

(b)(3)(ii)(91) (deleted)

(b)(3)(iii) (deleted)

(90) AFMC Center Commanders have the authority to ratify an unauthorized commitment involving Other Contracting without the power of redelegation. The authority may be exercised by the AFMC Center Vice Commander or the AFMC Center Executive Director in the absence of the Center Commander.

(91) (deleted)

(92) (deleted)

(93) (deleted)

(c)(7)(90) (deleted)

(c)(7)(91) (deleted)

(c)(7)(92) (deleted)

(c)(7)(93) (deleted)

ATTACHMENT 5

AFMCFARS Case 96-184

5317.7403 Policy.

(a) General. Undefinitized Contractual Action is defined in DFARS 217.7401. Funds are obligated and a not­to­exceed price established upon UCA issuance. Carefully consider initial funds obligation to ensure the ability of the contractor to pursue required effort without restraint, and to provide the impetus for timely definitization. Limit the use of UCAs to situations requiring immediate action to meet mission requirements. Advance planning can often result in reduction of the dollar size of UCAs or even eliminate the need to use them. The use of methods to reduce the potential for undefinitized actions is encouraged. The following are examples of techniques which may reduce the need for UCAs:

(1) Advance Change Adjustment Agreement. This clause provides for the incorporation of changes not exceeding an agreed upon monetary value under the "Advance Change Adjustment Agreement" procedure in 5343.205­90.

(2) Priced Options. Establishing priced options for anticipated changes can reduce the need for change orders.

(3) Management Emphasis on Timely Receipt of Proposals. Encouraging, requiring, or otherwise incentivizing contractors to submit proposals on a timely basis can reduce the need to issue undefinitized documents.

(4) Segregation of Initial Effort. A requirement that would otherwise require issuance of an undefinitized document may be segregable into an initial, firmly priced labor intensive effort subject to bilateral agreement and a residual effort. Negotiation of a definitive document for the residual effort may be possible during the initial effort, obviating the need to issue an undefinitized action, or greatly reducing its size, or reducing the definitization time that might otherwise adversely impact price or delivery.

(b) (deleted)