DEPARTMENT OF THE AIR FORCE AFAC 96-1

Headquarters US Air Force

Washington DC 20330 June 13, 1997

AIR FORCE ACQUISITION CIRCULAR

This Air Force Acquisition Circular (AFAC) is issued pursuant to the authority of FAR 1.301 and amends the 1996 Edition of the AFFARS. Reproduction is authorized.

CONTENTS

Item Title Page

I Empowerment 2

II Contingency Contracting 2

III Contracting Officer Representatives 2

IV Limited Contracting Officer Authority 2

V Joint Venture Certificate 2

VI Qualification Requirements Policy 2

VII Market Acceptance 2

VIII Accident Prevention, Health and Safety on Government Installations 2

IX Restrictions on Foreign Purchase 3

X Claim Certification Threshold 3

XI Research and Development Contracting 3

XII Increasing Indefinite-Delivery/Indefinite-Quantity (Architect-Engineer) Contract Options 3

XIII Acquisition of Information Resources 3

XIV Notification and Reporting of Substantial Impact on Employment 3

XV Residual Powers (Indemnification) 3

XVI Provision and Clause Instructions 3

XVII Appendix DD-Simplified Acquisition of Base Engineer Requirements Program 3

Editorial Revisions 4

ITEM SUMMARIES

Item I--Empowerment (AFFARS Case 96-01)

HQ AFMC’s Operation ThunderBoom initiatives resulted in policy changes that were implemented by SAF/AQ memorandum, "Field Empowerment Through Increased Approval Thresholds", dated 18 Jun 96. This memorandum caused changes in AFFARS Parts 5301, 5302, 5306, 5307, 5309, 5315, 5317, Appendix AA, and Appendix BB.

Item II--Contingency Contracting (AFFARS Case 96-02)

AFFARS 5301.601-93 is revised to include policy that will remain in AFFARS after Appendix CC is deleted and rewritten into a new Air Force manual. It adds language on the selection and appointment of contingency contracting officers.

Item III--Contracting Officer Representatives (AFFARS Case 96-03)

Language is added to AFFARS 5301.602-2 inserting alternative names for the contracting officer’s representative. In the first sentence of the paragraph the reference to AFI 64-108 is changed to AFMAN 64-108, Service Contracts, and in the second sentence, the reference to AFI 64-108 is changed to AFI 63-504, Quality Assurance Evaluator Program..

Item IV--Limited Contracting Officer Authority (AFFARS Case 96-04)

AFFARS 5301.603-2-90 is revised to: (1) change the table to allow contracting personnel without a Level I contracting certification to issue pre-priced IDIQ delivery orders (2) change the table to allow transportation personnel to issue orders against transportation BOAs (3) change the table to modify the authority of noncontracting personnel to issue FSS/GSA/VA delivery orders only under $25,000 and pre-priced BPA calls only under $25,000. In addition, delete "or open market (methods of award)" from 5301.603-2-90 (c)(2) since this phrase conflicts with the table (i.e. noncontracting personnel are not allowed to make open market purchases per the table).

Item V--Joint Venture Certificate (AFFARS Case 96-05)

AFFARS 5304.102 (d) is revised to change the word "certificate" to "document" and to modify the prepositional phase at the beginning of coverage to clarify the AFFARS requirement to identify the principal representative of the joint venture. The Federal Acquisition Reform Act (FARA) of 1996 mandated the elimination of nonstatutory certification requirements from regulations. The AFFARS language is changed from "certificate" to "document" to eliminate potential misinterpretation or perceived noncompliance with FARA.

Item VI--Qualification Requirements Policy (AFFARS Case 96-06)

AFFARS 5309.202 (a)(1) is revised to eliminate confusion between the AFFARS and DFARS 209.202(a)(1) by deleting the first two sentences which defaults the approval to the official stated in DFARS.

Item VII--Market Acceptance (AFFARS Case 96-07)

AFFARS 5311.103 is added to permit contracting officers to make the decision when market acceptance criteria should be used. This language was added to counter the erroneous impression (in FAR 11.103(a)) that approval by the head of the agency is required.

Item VIII--Accident Prevention, Health and Safety on Government Installations (AFFARS Case 96-08)

AFFARS 5323.9001 and 5352.223-9001 are revised to delete reference to AFI 91-301 Air Force Occupational and Environmental Safety, Fire Protection, and Health (AFOSH) Program. Per HQ AFSPC/LGCP memo dated 6 Nov 96, AFFARS 5352.223-9001 has caused confusion because the clause refers to AFI 91-301, but AFI-301 (paragraph 9) states that the AFI does not apply to contractor employees. Also corrected are the clause date and a typographical error.

Item IX--Restrictions on Foreign Purchase (AFFARS Case 96-09)

Federal Acquisition Circular (FAC) 90-41 revised FAR Subpart 25.7 and eliminated FAR 25.703, Exceptions. Since AFFARS 5325.703 is the only language in AFFARS Subpart 5325.7, the entire subpart is deleted.

Item X--Claim Certification Threshold (AFFARS Case 96-10)

AFFARS 5333.207 is revised to change the claim certification threshold from $50,000 to $100,000 in accordance with Federal Acquisition Circular (FAC) 90-32, Item II. Additionally, the threshold in AFFARS 5333.211 (b) is revised as well due to Air Force policy to keep the thresholds similar.

Item XI--Research and Development Contracting (AFFARS Case 96-11)

AFFARS 5335.002 is deleted to comply with P.L. 104-106 (National Defense Act for Fiscal Year 1996) which removed the requirement to notify Congress when a department or agency intended to perform a research and development contract exceeding ten years.

Item XII--Increasing Indefinite-Delivery/Indefinite-Quantity(Architect-Engineer) Contract Options (AFFARS Case 96-12)

AFFARS 5336.691 (f) is changed to allow four, one-year contract options instead of two, one-year options for architect-engineer (A-E) indefinite-delivery/indefinite-quantity (IDIQ) contracts. Field inputs identified the previous restriction of two option years as an inefficient use of resources; contracting officers now have the same flexibility in architect-engineer (A-E) indefinite-delivery/indefinite-quantity (IDIQ) contracts as for other type IDIQ contracts.

Item XIII--Acquisition of Information Resources (AFFARS Case 96-13)

AFFARS 5339, Acquisition of Information Resources, is deleted. The 1996 AFFARS language was obsolete due to the Information Technology Management Reform Act of 1996 (ITMRA) which was incorporated in the FAR via Federal Acquisition Circular (FAC) 90-41 (Item 1), effective 8 Aug 96. This item incorporates Contracting Policy Memo 97-C-06 into the AFFARS.

Item XIV--Notification and Reporting of Substantial Impact on Employment (AFFARS Case 96-14)

AFFARS 5349.7002 is deleted. Section 825 of the FY-97 Defense Authorization Act deleted a requirement for contractors to notify the contracting officer if program reduction or termination would result in substantial impact on employment and for this information to be reported to DOD Office of Economic Adjustment. The DAR Council has agreed to a final rule to delete the DFARS coverage at DFARS 249.7002 and 252.249-7001 (DFARS Case 96-D321).

Item XV--Residual Powers (Indemnification) (AFFARS Case 96-15)

AFFARS 5350.4 is deleted and replaced with a revised AFFARS 5350.4. The Air Force Indemnification PAT has developed an Indemnification Guide which sets forth the recommended procedures for preparing, evaluating, and processing indemnification requests. With the existence of this Guide, it is no longer necessary to include procedural information in the AFFARS. However, policy issues are retained.

Item XVI--Provision and Clause Instructions (AFFARS Case 96-16)

AFFARS 5352.1 is added to require MAJCOM supplemental provisions and clauses to insert the MAJCOM name in the title. This will eliminate confusion between Air Force and MAJCOM FAR Supplements.

Item XVII--Appendix DD-Simplified Acquisition of Base Engineer Requirements Program (AFFARS Case 96-17)

Appendix DD-104 and DD-301 are amended to comply with Contracting Policy Memo 97-C-01 that changed the delivery order limitation from $300,000 to $500,000.

Editorial Revisions

(1) AFFARS 5345.304-90 (b) and (d) and 5345.310-90 (c)(2) and (c)(7)(i), (ii), and (iii) are changed to reflect updated publication cites.

REPLACEMENT PAGES

Remove the Following Pages Insert the Following Pages

1996 Edition Foreword i and ii 1996 Edition Foreword i and ii

Part 5301 Table of Contents Part 5301 Table of Contents

1-1 through 1-32 1-1 through 1-30

2-1 through 2-4 2-1 through 2-4

4-1 and 4-2 4-1 and 4-2

Part 5306 Table of Contents Part 5306 Table of Contents

6-1 through 6-10 6-1 through 6-10

Part 5307 Table of Contents Part 5307 Table of Contents

7-1 through 7 -4 7-1 through 7-4

9-1 and 9-2 9-1 and 9-2

Part 5311 Table of Contents Part 5311 Table of Contents

11-1 and 11-2 11-1 and 11-2

15-3 and 15-4 15-3 and 15-4

17-7 and 17-8 17-7 and 17-8

23-3 and 23-4 23-3 and 23-4

Part 5325 Table of Contents Part 5325 Table of Contents

25-3 and 23-5 25-3 and 25-4

Part 5333 Table of Contents Part 5333 Table of Contents

33-5 through 33-8 33-5 through 33-8

Part 5335 Table of Contents Part 5335 Table of Contents

35-1 and 35-2 35-1 and 35-2

36-3 and 36-4 36-3 and 36-4

Part 5339 Table of Contents 39-i and 39-ii

39-1 and 39-2 -------

45-1 and 45-2 45-1 and 45-2

Part 5349 Table of Contents Part 5349 Table of Contents

49-7 and 49-8 49-7 and 49-8

Part 5350 Table of Contents Part 5350 Table of Contents

50-3 and 50-4 50-3 and 50-4

Part 5352 Table of Contents Part 5352 Table of Contents

52-1 through 52-6 52-1 through 52-6

Appendix AA Table of Contents Appendix AA Table of Contents

Appendix AA-1 through AA-26 Appendix AA-1 through AA-26

Appendix AA-29 and AA-30 Appendix AA-29 and AA-30

Appendix BB Table of Contents Appendix BB Table of Contents

Appendix BB-1 through BB-28 Appendix BB-1 through BB-28

Appendix BB-39 and BB-40 Appendix BB-39 and BB-40

Appendix DD-1 and DD-2 Appendix DD-1 and DD-2

Appendix DD-7 and DD-8 Appendix DD-7 and DD-8

Appendix DD-15 and DD-16 Appendix DD-15 and DD-16

EFFECTIVITY INSTRUCTIONS: This AFAC is effective June 13, 1997.