AIR FORCE ACQUISITION CIRCULAR (AFAC) 2006-0515
FOR ADDITIONAL INFORMATION CONTACT:
SAF/AQCP, 1060 Air Force Pentagon, Washington, DC 20330-1060 (703) 588-7060
Summary of Changes
Reason for Change
All changes listed in this AFAC are a result of the incorporation of MAJCOM Supplements into the AFFARS.
AFFARS Sections Revised: 5301, 5302, 5303, 5304, 5305, 5306, 5307, 5309, 5315, 5316, 5317, 5319, 5322, 5325, 5328, 5332, 5333, 5336, 5345, 5347, 5349, 5350, 5352, Appendix CC
Mandatory Procedures Added or Revised: MP5301.602-3, MP5301.9001, MP5303, MP5306.304, MP5315.3, MP5315.407-90, MP5315.606, MP5317, MP5325, MP5328, MP5332.7, MP5333.104
Information Guidance Added or Revised: IG5306, IG5307.104-92, IG5307.104-93, IG5315.406-3, IG5317.9500, IG5336.9201
Templates Added or Revised:
Supplemental information about the change: The MAJCOM Supplements Review was an initiative undertaken by a group of Air Force contracting professionals representing all MAJCOMs and the SAF/AQC Contracting Policy staff. The changes below represent months of concentrated effort whereby each MAJCOM’s AFFARS supplemental policy language was evaluated for inclusion, exclusion or modification into the AFFARS.
AFFARS PART 5301 Changes:
(a) The AFFARS is published on the FARSite by the Contracting Laboratory, Hill AFB, UT. AFMC and AFSPC shall publish their FAR Supplements on the World Wide Web at the FARSite by sending an electronic copy of their FAR Supplement and any subsequent changes to the Contracting Laboratory.
The AFFARS is issued by the DAS(C) based on the authority granted by Secretary of the Air Force Order (SAFO) 101.1 dated 5 Jun 99 and ASAF(A) memorandum regarding “Delegation of Contract and Agreement Authority” dated 30 Nov 99. AFMC is authorized to issue a FAR supplement and AFSPC is authorized to issue a FAR Supplement to support SMC contract activity.
FAR Supplements comply with the control and compliance procedures established in FAR 1.3, as supplemented, and do not restrain the flexibilities found in the FAR, DFARS and/or AFFARS. MAJCOMs and DRUs shall submit procurement policies, regulations, procedures, clauses, and forms that require approval by USD (AT&L) DP to SAF/AQCP. The request shall include a detailed justification using the format in DFARS 201.201-1. SAF/AQCP will arrange for publication in the Federal Register, if necessary. The requesting activity is responsible for evaluating public comments and preparing the final package for SAF/AQCP to submit to USD (AT&L) DP.
(2) Submit requests for deviations which require USD (AT&L) DP approval through the Senior Contracting Official (SCO) to SAF/AQCK for processing.
SCOs are authorized to approve individual deviations except as restricted by DFARS 201.4. Individual deviation approval authority shall not be delegated outside contracting channels and shall not be delegated lower than the SCCO.
(b)(ii) Only MAJCOM SCOs are authorized to approve class deviations except as restricted by DFARS 201.4. Class deviation approval authority shall not be further delegated. Class deviation approval authority for the DRUs has been retained by the DAS(C). DRUs may request a class deviation through SAF/AQCK. These requests must comply with DFARS 201.402(2).
(a)(i) Heads of Contracting Activities (HCAs) Responsibilities.
(A) PEOs are the HCAs for their assigned programs and acquisitions; however, this designation of HCA does not include “Other Contracting” authority -- See paragraph (B) below for the designation of HCAs for “Other Contracting”. PEOs shall not delegate HCA responsibilities unless specifically authorized elsewhere in the AFFARS.
(B) The commanders (and when the commander is absent, the vice commanders) of the following organizations are the HCAs for “Other Contracting”: Air Combat Command (ACC), Air Education and Training Command (AETC), Air Force Reserve Command (AFRC), Air Mobility Command (AMC), Air Force Materiel Command (AFMC), Air Force Space Command (AFSPC), Pacific Air Forces (PACAF), and United States Air Forces in Europe (USAFE). The lowest level that HCA responsibilities may be delegated by the other commands listed above is the SCO, unless specifically stated otherwise in the AFFARS. For AFMC and AFSPC, the lowest level that HCA responsibilities can be delegated is the SCCO, unless specifically stated otherwise in the AFFARS.
(C) The DAS(C) is the HCA for the following organizations: Air Force District of Washington (AFDW), Air Force Special Operations Command (AFSOC), United States Air Force Academy (USAFA), and Air Force Operational Test and Evaluation Center (AFOTEC). The DAS(C) delegates all delegable HCA responsibilities to the commanders of these organizations. All non-delegable HCA responsibilities are retained by the DAS(C). HCA shall not be delegated lower than the level of the staff officer with overall responsibility for contracting in the organization, unless specifically stated otherwise elsewhere in the AFFARS.
(2) Ratification approval authority is as follows except for PEO programs:
(A) The HCA for actions equal to or greater than $25,000.
(B) The chief of the contracting office and SCCOs for actions less than $25,000.
(3) For PEO Programs, follow the approval process established by the HCA (PEO).
The SCO is authorized to select, appoint and terminate contracting officers in accordance with this section. The Contracting Officer Appointment/Termination Request Template, Nov 05 (SAF/ACQP), is recommended for use.
(a) Contracting officer appointments shall be limited to military personnel in Air Force Specialty Codes (AFSC) 64PX or 6C0X1 and civilians in the GS-1102 or equivalent local national occupational series possessing a level 1 or higher Acquisition Professional Development Program (APDP) certification in contracting who occupy a manning authorization listed under these specialty codes, except as otherwise authorized below.
(b) Military personnel in AFSCs 64PX or 6C0X1 and civilians in the GS-1102 or equivalent local national occupational series who occupy a manning authorization listed under these specialty codes but do not possess a level I APDP certification in contracting may only be issued limited warrants for amounts less than or equal to the simplified acquisition threshold (SAT).
(c) Non-contracting personnel, such as transportation personnel, medical supply personnel, librarians, and chiefs of construction management, may only be issued limited warrants for amounts less than or equal to the simplified acquisition threshold (SAT) provided:
(1) The warrant specifies a dollar limit per transaction; the method(s)of award; and the supplies, equipment and/or non-personal services, to include construction, related to the individual’s specialty that may be procured. For example, librarians may buy books, but not construction materials or services; and,
(2) Personnel have completed training appropriate to the type of instrument and level of responsibility delegated.
(a) Except for AFMC and SMC, the SCO shall issue all unlimited contracting officer warrants and termination contracting officer warrants. The SCO may delegate the authority to issue limited contracting officer warrants to the SQ/CC, or equivalent. Limited warrant values shall be assigned by the issuing authority within the maximum clearance thresholds assigned to the squadron/unit as specified by 5301.9001(g).
(b) For AFMC and SMC, in accordance with their supplements.
Contracting Officer warrants shall be terminated upon retirement, reassignment from the position requiring the warrant, or when employment is terminated. Requests for termination of warrants shall be submitted 30 days in advance (or as soon as practicable) of the requested termination date along with the reason for termination. All terminations of warrants shall be in writing and signed by the issuing authority.
(b) Excluded from business or contract clearances are:
(1) actions that create a UCA, undefinitized change order, undefinitized long lead contract;
(2) orders issued against existing contracts in accordance with the terms and conditions of the basic contract;
(3) modifications increasing fund obligations under incrementally funded contracts when modifications do not exceed dollar amounts stated in the original approved clearance; or
(4) modifications solely for changes as a result of Service Contract Act wage rates/fringe benefits or Fair Labor Standards Act minimum wages.
(c) “Business Clearance” means:
(1) For competitive acquisitions, approval to issue the solicitation.
(2) For noncompetitive contract actions, approval to begin negotiations if traditional or commercial pricing is used.
(d) “Begin negotiations” means, for the purpose of noncompetitive contract actions using traditional or commercial pricing, starting discussions with an offeror for the purpose of reaching agreement on all aspects of the proposal. Initiation of audits and fact-finding necessary to evaluate the proposal and develop the Government’s negotiation objective do not constitute negotiations.
(e) “Contract Clearance” means:
(1) For competitive acquisitions, approval by the clearance authority for the SSA to make the decision to award without discussions or to request final proposal revisions in accordance with FAR 15.307.
(2) For noncompetitive contract actions using traditional or commercial pricing, approval by the clearance authority to award a contract or contract modification/contract action.
(3) For actions using Integrated Product Team (IPT)/One Pass pricing method, approval to conclude negotiations and award a contract.
(f) “Traditional Pricing” means, for the purpose of noncompetitive actions, the serial process of the Government (1) defining the requirements; (2) requesting and receiving a proposal; and (3) reviewing and evaluating the proposal in order to establish an objective in preparation for negotiations.
(g) “IPT/One Pass pricing,” means the process of concurrent requirements refinement, proposal development, fact-finding, and preliminary agreement between the Government and contractor in a noncompetitive acquisition. In this process, the Government and contractor IPT members communicate in an ongoing, structured manner from early planning stages through repetitive model contract development and review of related cost or pricing data.
(g) Contract actions meeting the contract value thresholds set below shall not be awarded without obtaining the required business and contract clearance approval(s). Clearance approval authority may not be delegated, however unit specific assignments pursuant to subparagraph (2)(i) are authorized.
(1) For PEO programs supported by SMC, PEO programs supported by AFMC and for AFMC Other Contracting (excluding Operational)
Clearance Approval Authority
$25M - $50M
Wing level PK/A7K/MSK/SPO Chief of Contracts for SMC PEO Programs/or Deputy
$5M - $25M
Group level PK/A7K/MSKor Deputy/at least one level above the CO for SMC PEO Programs
(2) For Operational Contracting (excluding AFRC)
Clearance Approval Authority
SCO or SCCO
$1M - $2M
SQ/CC or DBO
$500K - $1M
At least one level above the CO
(i) The SCO or SCCO may assign a clearance threshold in excess of the $2M identified above for a squadron/unit. The threshold assigned shall not be greater than $10M or in the case of specialized units, $25M. For unit thresholds above $2M, the squadron commander or equivalent will assign subordinate thresholds within their units. The clearance-approving official must be at least one level above the contracting officer.
(ii) On a case-by-case basis, the SCO or SCCO may review a specific contract action below the established threshold in order to ensure compliance with applicable standards and practices. The SCO will notify SAF/AQCP annually (by 1 Nov) if any such reviews (by each specific action) were accomplished. Follow the Mandatory Procedure at MP5301.9001 for submission of this information.
(iii) The SCO may lower the threshold below the $2M identified above or rescind a previously granted increased threshold for a squadron/unit that is not meeting established standards. In those instances, concurrent notification will be made to SAF/AQCP.
(3) For AFRC
Clearance Approval Authority
* Note: Contract value is determined by applying the sum of the value of the basic portion of the instant acquisition, plus any options, sums reserved for provisioning, and the value of any contingencies, such as ceiling, award fees/terms, and performance incentives.
(4) If the SCCO is a SSA, the clearance approving officials for those acquisitions will be their SCO or deputy. When the SCO or their deputy is the SSA, the clearance official for those acquisitions is ADAS(C). Clearance requests shall be sent through SAF/AQCK.
AFFARS PART 5302 Changes:
"Center commander" means, in AFMC, the field activity commander or civilian equivalent of Aeronautical Systems Center, Air Armament Center, Air Force Flight Test Center, Air Force Research Laboratory, Arnold Engineering Development Center, Electronic Systems Center, Oklahoma City Air Logistics Center, Ogden Air Logistics Center, and Warner Robins Air Logistics Center. In AFSPC, “center commander” means the field activity commander of Space and Missile Systems Center (SMC).
"Chief of the contracting office" means any person who has direct managerial responsibility for the operation of a contracting office as defined in FAR 2.1. Unless specifically excepted, this term may include, at the option of the designated official, the deputy chief or acting chief of the contracting office. This term includes the Contracting Squadron Commander (SQ/CC)/Deputy or civilian equivalent.
“Direct Reporting Unit (DRU)” means a subdivision of the Air Force, directly subordinate to the Chief of Staff, US Air Force. DRUs include the Air Force District of Washington (AFDW), United States Air Force Academy (USAFA), and Air Force Operational Test and Evaluation Center (AFOTEC).
“Operational Contracting” is a subset of “Other Contracting” and means those contracting actions (as defined in DFARS 204.670-1) taken to meet the needs of installation commanders, DRUs, deployed commanders, and resident, tenant, and supported units. Operational contracting may be accomplished by contracting squadrons, operational contracting offices, contracting divisions, or another organization entity designed to meet local needs.
“Senior Contracting Official (SCO)” means the MAJCOM/DRU headquarters staff official with overall functional responsibility for contracting. The deputy to an SCO may exercise any SCO authority unless specifically limited by the SCO. The SCO may include the A7K, MSK, or MAJCOM Chief/Director of Contracting.
“Specialized Units” means those operational contracting units/offices that support several installations, specific customer(s), mission(s), or execute contracts for a specific product(s) or service(s). Specialized Units are designated by the SCO.
AFFARS PART 5303 Changes:
Any individuals requiring access to source selection information as a result of participating on a source selection or in the performance of their duties shall sign a Source Selection Information (SSI) Briefing Certificate (See MP5315.3, Attachment 1). The SSI Briefing Certificate may be used on a fiscal year basis for individuals who must have access to SSI in the performance of their official duties throughout the year, whether or not they participate as part of the actual source selection team.
Follow the Mandatory Procedures at MP5303.104-7 for the preparation and processing of contracting officer’s determination of violations or possible violations on specific procurements. FAR 3.104-7 FAR 3.104-7(a)(1)
SUBART 5303.6 — CONTRACTS WITH GOVERNMENT EMPLOYEES OR ORGANIZATIONS OWNED OR CONTROLLED BY THEM
AFFARS PART 5304 Changes:
(b) The contracting officer shall submit requests through their SCO/SCCO to SAF/SB. The request shall address the impact of issuing an advance notice, state why the notice is not appropriate or reasonable and identify alternative actions to optimize opportunities for small business participation.
AFFARS PART 5306 Changes:
The Air Force competition advocacy program is based on the authority provided by SAFO 650.3, Functions of the Air Force Competition Advocate General and Procuring Activity Advocates for Competition, dated 30 Oct 1997. The Deputy Assistant Secretary (Contracting) is designated as the Air Force Competition Advocate General. The following organizations are designated as “procuring activities”: Air Combat Command (ACC), Air Education and Training Command (AETC), Air Mobility Command (AMC), Air Force Materiel Command (AFMC), Air Force Space Command (AFSPC), Pacific Air Forces (PACAF), United States Air Forces in Europe (USAFE), Air Force District of Washington (AFDW), Air Force Reserve Command (AFRC), Air Force Special Operations Command (AFSOC), USAF Academy (USAFA), and Air Force Operational Test and Evaluation Center (AFOTEC). These organizations are authorized to further designate subordinate organizations as “procuring activities” subject to the requirements of FAR 6.501 and AFI 63-301, Air Force Competition and Commercial Advocacy.
AFFARS PART 5307 Changes:
(a) General requirements.
(1) The program manager, or the contracting officer if a program manager is not assigned, shall conduct an ASP for all ACAT programs, CSO acquisitions, and AFPEO/CM acquisitions. The ASP chairperson has the authority to waive the requirement for an ASP.
(2) ASPs should take place as early as possible in the acquisition planning process to develop a systematic and disciplined approach to achieve an efficient/effective acquisition.
(3) For Other Contracting acquisitions, Acquisition Strategy Panels (ASPs) shall be convened for all acquisitions requiring a formal/written Acquisition Plan (AP). The ASP chairperson may establish streamlined ASP procedures and delegation of the ASP. Streamlined ASPs may be convened for acquisitions <$5M.
(b) ASP chairpersons.
(1) For non-space related ACAT I or special designated programs, ASAF (A) is the ASP chairperson.
(2) For space related ACAT I programs, USECAF is the ASP chairperson.
(3) For non-space related ACAT II and III programs, the PEO is the ASP chairperson.
(i) For non-space ACAT II programs, if the PEO wishes to delegate the responsibility for chairing an ASP, obtain concurrence from ASAF (A) and ensure the concurrence is documented in the LCMP/SAMP.
(ii) For non-space ACAT III programs, PEOs may delegate the responsibility for chairing an ASP on a case-by-case basis.
(4) For space related ACAT II and III programs, the PEO is the ASP chairperson.
(5) For AFPEO/CM acquisitions, the PEO is the ASP chairperson.
(6) For Commodity Council acquisitions, the CSO is the ASP chairperson, unless the acquisition is within the PEO/CM Portfolio.
(7) For Other Contracting, ASP Chairperson shall be the SCO, or as delegated.
(b) Approval requirements.
(1) For non-space related programs:
(i) For ACAT ID programs, ASAF (A) is the LCMP/SAMP approval authority. However, the acquisition strategy aspects of the LCMP/SAMP require additional approval by USD (AT&L), as the MDA, in accordance with USD (AT&L) guidance.
(ii) For ACAT IAM programs, ASAF (A) is the LCMP/SAMP approval authority. However, the acquisition strategy aspects of the LCMP/SAMP require additional approval by ASD (NII), as the MDA, in accordance with USD (AT&L) guidance.
(iii) For ACAT IC, IAC and ACAT II programs, ASAF (A) is the LCMP/SAMP approval authority.
(iv) For ACAT III programs, if a LCMP/SAMP is prepared, the MDA is the LCMP/SAMP approval authority.
(2) For space related programs:
(i) For ACAT I programs, coordination and approval of the IPS material occurs as a result of a successful Independent Program Assessment Team review. The DoD Space MDA is the approval authority for the acquisition strategy portion of the IPS.
(ii) For ACAT II and ACAT III programs, the MDA is the acquisition strategy approval authority.
(3) For commodity council acquisitions not in a PEO portfolio, the CSO is the CAMP approval authority.
(a) For non-space related ACAT III programs, if an acquisition plan is prepared in lieu of a LCMP/SAMP, the MDA is the acquisition plan approval authority.
(c) For information technology services acquisitions that are subject to appendix C of USD (AT&L) policy memorandum dated 31 May 02, Acquisition of Services, and thresholds identified for Major Automated Information Systems in DoDI 5000.2, the acquisition plan approval authority is ASD (NII).
(d) For MAJCOM and DRU Other Contracting acquisitions.
(1) For Other Contracting acquisitions with a dollar value above the SAT to $5M, contracting officers shall at a minimum prepare a Streamlined Acquisition Strategy Summary (SASS), which must be approved one level above the contracting officer (See IG5307.104-92). At the discretion of the contracting officer, an AP may be prepared for those actions where it would be more appropriate.
(2) APs are to be prepared for Other Contracting acquisitions with a value >$5M. The AP must be approved by the SCO unless the acquisition is within the AFPEO/CM portfolio (see AFFARS 5337.503-90). Further guidance for APs covered by this subparagraph is provided at IG5307.104-92.
(3) AFMC and AFSPC for SMC may establish alternate Other Contracting AP procedures and thresholds for non-operational contracting actions up to the thresholds in DFARS 207.103(d)(i).
(e) For commodity council acquisitions, the CSO is the acquisition plan approval authority.
(a) The commodity council director shall prepare a commodity council charter which shall at a minimum:
(1) Identify the proposed Commodity Strategy Officials (CSO),
(2) Identify anticipated results of the council activities,
(3) Identify the responsibilities of the primary organizations involved in the commodity council, and
(4) Identify the source of resources necessary to create and sustain the commodity council.
(b) PEO/CM shall coordinate on all charters involving acquisition of services to determine if the acquisition should be conducted within the PEO/CM portfolio.
(c) SAF/AQC shall review and approve all commodity council charters.
Acquisition plans must address whether foreign contractors can be permitted to participate at the prime contractor level in any or all contracts involved in the acquisition.
(a) (4) Capability or Performance. For services acquisitions, the acquisition plan shall:
(13) Logistics Considerations. (S-90) Ensure anti-terrorism/force protection issues are considered as required by AFI 10-245, Air Force Anti-terrorism (AT) Standards. Consult with the local anti-terrorism officer (ATO) as necessary. Describe the extent of integrated logistics support planning to date, including references to approved plans.
AFFARS PART 5309 Changes:
In addition to appropriated fund activities, this subpart applies to Air Force non-appropriated fund activities and activities responsible for non-procurement actions (e.g., grants, cooperative agreements, scholarships, fellowships, loans, loan guarantees, and subsidies).
(a) The contracting officer shall submit a request for a compelling reason exception through command contracting channels to SAF/AQCK, with a copy to SAF/GCR. The request shall include a description of efforts taken to establish alternate sources and the impact if the exception is not granted. SAF/AQCK will forward approved exceptions to GSA.
AFFARS PART 5315 CHANGES:
5315.1 -- SOURCE SELECTION PROCESSES AND TECHNIQUES
(a) (1) The contracting officer is the Source Selection authority (SSA) for acquisitions of $10M or less. Except as provided in paragraph (4) below, contracting officer is the SSA for acquisitions of any dollar value using Performance Price Tradeoff (PPT) or Lowest Price Technically Acceptable (LPTA) procedures, unless the acquisition plan approving authority designates otherwise.
(2) SSAs for ACAT acquisitions and PEO/CM acquisitions greater than $10M and using other than PPT or LPTA procedures are listed below:
(i) For non-space related ACAT I programs, ASAF (A) is the SSA.
(ii) For space related ACAT I programs, USECAF is the SSA.
(iii) For ACAT II and III programs, the PEO is the SSA.
(iv) For acquisitions in the AFPEO/CM portfolio, the PEO is the SSA.
(3) SSAs for Other Contracting are listed below (Except for AFMC):
(i) For Wing-level acquisitions $10M - $100M and non-PEO/CM programs above $100M, the SSA shall be the Wing Commander or comparable Army position (for USAFE), and in the rank of 0-6 or above.
(ii) For MAJCOM Headquarters/DRUs/FOAs acquisitions $10M - $100M and non-PEO/CM programs above $100M, the SSA shall be the Headquarters Director, or DRU/FOA equivalent wing commander, having program responsibility, and in the rank of 0-6/GS15 or above.
(4) SSAs for A-76 competitions are listed below:
(i) AFPEO/CM, for those competitions within the PEO/CM portfolio, unless otherwise designated by the PEO/CM.
(ii) For all other A-76 competitions greater than $10M, the MAJCOM/FOA/DRU Vice Commander (CV) shall appoint the SSA. The MAJCOM/FOA/DRU/CV must be a General Officer or Senior Executive Service Civilian. If the MAJCOM/FOA/DRU/CV does not meet this criterion, the SSA appointment authority is the Component Competitive Sourcing Official (CCSO).
(5) SSAs, if delegated in paragraph 2, 3 or 4 above, shall be no lower than the contracting officer. For those acquisitions for which the SSA is the SCO or SCCO, clearance will be accomplished IAW 5301.9001(g)(4).
(a)(2) If adverse past performance information, to which the contractor has had no opportunity to respond, is the reason an offeror may not receive an award without discussions or be excluded from the competitive range, the offeror shall be provided an opportunity to address the information.
(c)(1) The SSA shall establish the competitive range.
(c)(2)(90) Chief of the Contracting Office may approve written requests for the use of an Alternate Structured Approach. This authority may not be re-delegated.
AFFARS PART 5316 CHANGES:
(a) The HCA or HCA designee is the Fee Determining Official. The HCA or HCA designee may designate this responsibility on an individual contract or class basis. This designation may be made by name, position, or function, without limitation.
(e) The Life Cycle Management Plan (LCMP)/Single Acquisition Management Plan (SAMP)/Acquisition Plan (AP) approval authority has the authority to approve contract periods in excess of five years, unless otherwise restricted by statute. If a LCMP/SAMP/AP is not required, the contracting officer has the authority to approve contract periods in excess of five years, unless otherwise restricted by statue. For space related programs under the purview of National Security Space Acquisition Policy 03-01 (NSS 03-01), the acquisition strategy approval authority has the authority to approve contract periods in excess of five years, unless otherwise restricted by statute.
This policy applies to all orders placed for supplies and services under non-DoD contracts above the simplified acquisition threshold.
Follow the Mandatory Procedures at MP5317.70, Proper Use of Non-DoD Contracts, for procedures for reviewing and approving orders placed for supplies and services under non-DoD contracts, whether through direct acquisition or assisted acquisition.
AFFARS PART 5319 CHANGES:
(d)(10)(B) Small business specialists are required to review all acquisitions expected to exceed $10,000 (to include awards against GSA instruments but excluding awards under the Small Business Innovation Research/Small Business Technology Transfer Programs) prior to accomplishing or advertising the acquisition. Document review on the DD Form 2579, Small Business Coordination Record. Except for AFMC and AFSPC, forward a copy of all completed DD Forms 2579 in excess of $1,000,000 to the MAJCOM/DRU Director of Small Business prior to convening an Acquisition Strategy Panel or prior to finalizing the Acquisition Strategy if an ASP is not convened.
(d)(10) DD Form 2579. Contracting officers shall not make a public release (such as a Federal Biz Opps announcement) indicating the government’s decision on method of acquisition (full and open, small business set-aside, 8(a) program or HUBZone set-aside) until after obtaining small business specialist signature on the DD Form 2579. This does not preclude publishing synopses to facilitate market research such as a sources sought synopsis, prior to DD Form 2579 signature, provided the synopsis does not indicate the government’s decision on method of acquisition.
d)(11) SB specialists/PCRs should be read into programs early in the acquisition planning process whenever possible. In those instances where the Small Business Specialist and the SBA/Procurement Center Representative are precluded from the review process due to security classification, the Contracting Officer shall complete DD Form 2579, Small Business Coordination Record, and the Chief of the Contracting Office shall review and coordinate on the DD Form 2579.
(a)(1) Small Business subcontracting goals will be expressed in terms of percent of contract value in addition to percent of subcontracted amount.
(c) The small business specialist shall review and coordinate in writing on any determination made by the contracting officer that no subcontracting possibilities exist.
(d)(7) The contracting officer shall obtain the written coordination of the small business specialist prior to contractually incorporating a subcontracting plan.
AFFARS PART 5322 CHANGES:
Contracting officers shall involve the Regional Labor Advisors in all labor relation actions outlined in FAR 22, as supplemented. AFI 64-106, Air Force Industrial Labor Relations Activities, identifies the Regional Labor Advisors and their assigned geographical areas.
e) The following contracts require contractors to report actual or potential labor disputes to the contracting activity:
(i) Construction contracts in excess of $100,000
(ii) Service contracts in excess of $100,000
AFFARS PART 5325 CHANGES:
5325.1002-Use of Foreign Currency.
The contracting officer shall insert the provision at 5352.225-9004, Submission of Offers in other than United States Currency, when offers are given a choice of submitting offers in United States dollars or in a currency other than United States dollars. When purchase requests and contracts are expressed in foreign currency, the rate of exchange to be used in determining any applicable acquisition thresholds and authorities will be the current Foreign Currency Fluctuation Defense (FCFD) budget rate for the applicable currency.
(b) Contracting Officers shall notify their MAJCOM/DRU upon making the determination that a domestic article cannot be acquired as and when needed in a satisfactory quality and sufficient quantity at U.S. market prices. The MAJCOM shall then contact SAF/AQCK who will confer with the Department of Commerce (DOC) and request a list of possible domestic sources. Upon notification from SAF/AQCK that domestic source(s) have not been identified by DOC, the contracting officer shall submit a determination and finding following the format in the Mandatory Procedures at MP5325.7002-2, including the market research report, to SAF/AQCK. The authority of the Secretary of the Air Force to make determinations in accordance with DFARS 225.7002-2 is not delegable.
AFFARS PART 5328 CHANGES:
5328.106-2 Substitution of surety bonds.
(a) The Chief of the Contracting Office is the authority to approve substitution of a new surety bond in accordance with FAR 28.106-2(a).
(c) The contracting officer is authorized to provide certified copies of payment bonds and contracts in accordance with FAR 28.106-6(c).
(d) When submitting requests for waiver, follow the procedures at MP5328.305(d).
(a) See MP5328.310 for mandatory procedures for contracts that include FAR 52.228-5, Insurance-Work on a Government Installation.
(b) Contracts performed in Spain. The contracting officer shall insert the clause at 5352.228-
9101, Spanish Insurance Certificate, in all service solicitations and contracts to be performed in Spain by other than United States or Spanish contractors, a Third Country National (TCN) contractor.
AFFARS PART 5332 CHANGES:
AFFARS PART 5333 CHANGES:
(d) No text.
(3) An agency protest is usually filed with the contracting officer. Offerors are encouraged to file at the lowest level to resolve the issues concerned. In all cases, a copy of an agency protest must be provided to the contracting officer regardless of the level at which the protest is filed. The contracting officer shall prepare the protest file following an agency protest (including a protest of a non-appropriated funds procurement) regardless of the level at which the protest is filed. The contracting officer shall request guidance from SAF/AQCK for any protest likely to generate significant Congressional interest.
(4) When an agency protest is denied, an offeror may request an independent review at a level above the contracting officer.
(h) The decision to deny a protest shall be made at a level no lower than that at which the protest was filed. Protests may be sustained at any level in the review process, with the concurrence of the cognizant legal office.
(a) The Commercial Litigation Division of the Air Force Legal Services Agency (AFLSA/JACN) serves as the Air Force agency counsel to the Department of Justice (DoJ) for protests at the USCFC and assists the assigned DoJ attorney in defending Air Force interests.
(b) The contracting officer shall inform AFLSA/JACN of any notice of protest at the USCFC and provide support as requested by AFLSA/JACN. Also notify the SCO or the SCCO and the cognizant legal office.
(c) The contracting officer shall prepare a “Rule 4 file” for any appeal to the ASBCA in accordance with Rule 4 of the ASBCA rules (see DFARS Appendix A, Part 2). The contracting officer shall consult with AFMCLO/JAB before including in the Rule 4 file any legal opinions or intra-governmental or inter-governmental documents as described in DoD Regulation 5400.7, DoD Freedom of Information Act Program; the Air Force Supplement to DoD 5400.7-R; and FAR 24.2.
AFFARS PART 5336 CHANGES:
When the clause at FAR 52.236-7, Permits and Responsibilities, is used in solicitations and contracts OCONUS, the clause shall be modified to reflect “host government and political subdivisions” in lieu of “Federal, State, and Municipal.”
AFFARS PART 5345 CHANGES:
(c) Selection, appointment, and termination of Property Administrators and Plant Clearance Officers shall be accomplished in accordance with DFARS 245.7001. Head of the contract administration office shall include Contracting Office Commanders, or civilian equivalents, or the SCCO in cases where the Property Administrator and/or Plant Clearance officer resides within the contracting office. The Property Administrators and Plant Clearance Officers will be certified at Level II in the Acquisition Professional Development Program function of Industrial/Contract Property Management. Refer to DoD 5000.52-M for details pertaining to certification.
AFFARS PART 5347 CHANGES:
5347.4 Policy. The following clauses and provisions are prescribed for use solely by the Air Mobility Command (AMC) for airlift transportation contracts.
5347.4-100 Contract clauses.
(a) The contracting officer shall insert the clause at 5352.247-9000, Air Safety, in all solicitations and contracts for airlift transportation. When contracting with a foreign carrier, modify subparagraph (a) of the clause as appropriate to identify the regulatory authority, which has jurisdiction over the contractor’s operations.
(b) The contracting officer shall insert the clause at 5352.247-9001, Requirement for Authorization to Engage in Air Transportation, in solicitations and contracts for airlift transportation, as required in the following situations:
(1) When using FAR Part 15 procedures for airlift transportation to be obtained from air carriers holding an Air Carrier’s Operating Certificate issued by the FAA under Part 121 of the Federal Aviation Regulations or a comparable air carrier’s operating certificate issued by a foreign governmental body. When contracting with a foreign carrier, modify subparagraph (a) of the clause as appropriate to identify the applicable certificate and issuing authority.
(2) With Alternate I when using FAR Part 15 procedures for airlift transportation to be obtained from air carriers holding a current Air Carrier Operating Certificate issued by the FAA under a part other than Part 121 of the Federal Aviation Regulations or a comparable air carrier operating certificate issued by a foreign governmental body. Alternate I sets forth requirements for a commercial air taxi operator certified under Part 127/135 of the Federal Aviation Regulations. When contracting with an air carrier operating under a different FAA authority or a foreign carrier, modify subparagraph (a) of the clause as appropriate to identify the applicable certificate and issuing authority.
(3) With Alternate II when using FAR Part 12 procedures for airlift transportation. When contracting with an air carrier operating under a different FAA authority or a foreign carrier, modify subparagraph (a) of the clause as appropriate to identify the applicable certificate and issuing authority.
(c) The contracting officer shall insert the clause at 5352.247-9002, Contractor’s Failure to Provide Service, in solicitations and contracts for airlift transportation, as required by the following situations:
(1) When using FAR Part 15 procedures for international charter airlift transportation.
(2) With Alternate I when using FAR Part 15 procedures for domestic charter airlift transportation.
AFFARS PART 5349 CHANGES:
Except for AFMC and AFSPC, authority to terminate contracts for default or cause requires approval by the SCO or command appointed terminations contracting officer (TCO). When requesting approval, the contracting officer will provide all relevant documents to include a chronology of key events, cure/show cause notices and responses thereto.
AFFARS PART 5350 CHANGES:
The authority to deny any request for contract adjustment under FAR 50 and take any action pursuant to FAR 50.302-2 or FAR 50.302-3, including the authority to modify or release unaccrued obligations of any sort and to extend delivery and performance dates, is delegated to:
(1) the commanders or vice commanders of ACC, AETC, AMC, AFSPC, PACAF, AFDW, USAFE, USAFA, and AFRC for actions that obligate less than or equal to $5,000. This authority cannot be redelegated.
(2) the AFMC commander or vice commander for actions that obligate less than or equal to $50,000. This authority may be delegated to the commanders/directors of the air logistics and product centers and AFMC SCO for other AFMC organizations for actions that obligate less than or equal to $5,000.
(3) The DAS(C) for actions for DRUs that obligate less than or equal to $50,000 and for actions for MAJCOMs in paragraph (1) above that obligate more than $5,000 but less than or equal to $50,000.
(b) All requests for relief and all related documents, certifications, correspondence, reports, files and a proposed memorandum of decision shall be forwarded through the appropriate SCO to the approving official.
Upon completion of all buying activity and/or SCO coordination, the contracting officer shall forward the indemnification request to SAF/AQCK for staffing to the SECAF.
(a) Secretary of the Air Force indemnification is limited to the unusually hazardous risks (UHR) defined in the Secretary’s approval and covers CRAF missions or missions substantially similar to or in lieu of those ordered under formal CRAF activation (CRAF-like missions). Each contract must include FAR clause 52.250-1, Indemnification Under Public Law 85-804, the definition of UHR, and a notice restricting application to missions in support of the designated contingency. The contracting officer shall ensure that all provisions of the Secretary’s approval are satisfied.
(b) Absent a formal CRAF activation, indemnification applies only in cases when the Commander, AMC determines in writing that a situation exists which requires CRAF-like missions. The contracting officer will request the determination in coordination with AMC/A3, JA, and A7. When a contractor requires indemnification because the cost of insurance is unaffordable, the contracting officer must document why the increased cost is prohibitive.
(c) If the Secretary’s approval authorizes the contracting officer to extend indemnification to additional contractors and subcontractors, they must meet the same conditions as those in the approval. This includes formally requesting indemnification and providing all the information required by FAR 50.403-1. The contracting officer must conduct and document the same analysis as accomplished for contractors already included in the Secretary’s approval and coordinate all additional approvals with AMC/A3, JA and SCO.
(d) The contracting officer is responsible for providing notification to contractors upon formal CRAF activation or when the Commander, AMC determines that CRAF-like missions are required. When ordering missions, the contracting officer must identify in writing those missions meeting the definition of UHR so there is no misunderstanding regarding indemnification coverage.
AFFARS PART 5352 CHANGES:
As prescribed in 5325.1002, insert the following provision in solicitations:
SUBMISSION OF OFFERS IN OTHER THAN UNITED STATES CURRENCY (JAN 2006)
(a) Offers may be submitted in United States dollars or the currency accepted at the place of performance.
(b) All offers shall be evaluated for determination of contract award by converting all foreign currencies to equivalent United States dollars by using the Foreign Currency Fluctuation Defense (FCFD) budget rate for the applicable currency in affect on the date set for the receipt of initial proposals.
(c) When a "Final Proposal Revision" is requested and received, in accordance with the applicable solicitation's terms and conditions, offers shall be evaluated by converting all foreign currencies to equivalent United States dollars by using the Foreign Currency Fluctuation Defense (FCFD) budget rate for the applicable currency in affect on the date set for the receipt of initial proposals.
(End of Provision)
SPANISH INSURANCE CERTIFICATE (USAFE) (Feb 2002)
(a) Below follows the Insurance Certificate required for any Third Country National Contractor (TCN), other than U.S. or Spanish, required for use under this contract. The certificate is provided to standardize base access procedures. It must be completed and signed by the policyholder and the insurer.
(b) The amount of coverage minimum is 90,151.82 Euros per insured party (personal injury), 60,101.21 Euros per accident (property damage), and 6, 010.12 Euros security deposit for legal fees. In all cases the amount of coverage, if different from the above amounts, will be determined by the insurer, except situations where the minimum coverage applies.
(c) The request for base access and the insurance certificate should be processed to the Spanish authorities 15 days prior to the actual time of arrival for contract performance.
(d) Complete the following certification:
SPANISH INSURANCE CERTIFICATION
CERTIFICATE OF INSURANCE COVERAGE OF THE CIVIL LIABILITY REFERRED TO UNDER ARTICLE 5 OF ANNEX 6 TO THE AGREEMENT BETWEEN THE KINGDOM OF SPAIN AND THE UNITED STATES OF AMERICA ON COOPERATION FOR THE DEFENSE, SIGNED THE 1st OF DECEMBER 1988.
The insurance Company_______________________________________________with legal domicile in _______________________________________________________________ Tel: __________________________
of Spanish/US nationality, registered in the Mercantile Registry of_______________________________________
Date: ____________________, Number________, Book: _______, Section _____, Volume________, Page_______.
That Mr./Mrs. ____________________of_____________________ nationality, with passport number_______________, has contracted with this company Policy Number_____________of civil liability against damages to persons or property which could arise from his/her actions or omissions in the performance of his/her official functions/professional activities in Spain because of the contract of______________________________________________________for the U.S. forces, and during the visit which, in respect of such contract, he/she may make to the_______________ Military Base, according to the general conditions in force for this type of insurance and also to the special conditions created for this purpose in the Spanish-U.S. Permanent Committee; that he/she has paid the premium according to the agreed conditions; and that such Policy is in force.
The Policy establishes as coverage of the mentioned risks the following amounts:
- For casualty: -------------------------- 601,012.10 Euros
With the following sub-limits for each injured person:
- For personal liability: ----------------- 90,151.82 Euros
- For property damage: ----------------- 60,101.21 Euros
- For Judiciary Bond: -------------------- 6, 010.12 Euros
The granted coverage is effective from ________________ through________________, and does not include any type of franchise, or similar limitation, to be deducted from the mentioned guarantees or any clause that requires the submission to any type of arbitration. The underwriting insurance company considers that the established amounts adequately cover the insured risks.
The policy sets forth the following clauses:
1. “The insurance company waives any right of subrogation against the United States of America which may arise by reason of any payment under this Policy.”
2. “The parties hereto explicitly agree to submit to the jurisdiction of the Spanish Courts of Law and to the Spanish Laws to settle any matter related to the construction or enforcement of the clauses and conditions of this Policy.”
IN WITNESS HEREOF, the present document is signed in______________________________,
For the Insured Company (signature) For the Insurance (signature)
CERTIFICADO DE COBERTURA DE SEGURO DE LA RESPONSABILIDAD CIVIL A QUE SE REFIERE EL ARTICULO 5 DEL ANEXO 6 AL CONVENIO ENTRE EL REINO DE ESPAÑA Y LOS ESTADOS UNIDOS DE AMERICA SOBRE COOPERACION PARA LA DEFENSA, FIRMADO EL DIA 1 DE DICIEMBRE DE 1988.
La Compañia de Seguros ______________________________________ con domicilio social en la Calle/Avda./Pla. ____________________________________________________________________, Tlfo.: _________________, de nacionalidad española/norteamericana, inscrita en el Registro Mercantil de______________________________, fecha _________________, Número ________, Libro _________, Sección ______, Tomo _______, Folio_______.
Que D. __________________________, de nacionalidad _________________________, provisto del pasaporte número _______________________, tiene suscrita con esta Compañia la Póliza número ____________________________, de responsabilidad civil contra daños a personas y cosas que pudieran derivarse de acciones u omisiones realizadas en el desempeño de sus funciones oficiales/actividades profesionales en España con ocasión del contrato de __________________________________________, para las Fuerzas de los EE.UU. y con la visita que en relación con dicho contrato realice a la Base Militar de ___________________________, según las condiciones generales vigentes para este tipo de seguros y además las condiciones especiales elaboradas a este fin en el Comité Permanente Hispano-Norteamericano; habiéndose satisfecho la prima según las condiciones pactadas, y encontrándose dicha Póliza en vigor.
La Póliza establece como cobertura de los riesgos mencionados las siguientes cuantías:
LIMITES DE INDEMNIZACION:
- Por siniestro: -------------------------- 601.012,10 Euros
Con los siguientes sublímites por perjudicado:
- Por daños personales: ---------------- 90.151,82 Euros
- Por daños materiales: ----------------- 60.101,21 Euros
- Por fianzas judiciales: _--------------- 6.010,12 Euros
Las coberturas otorgadas son efectivas desde el ___________________________, hasta el _________________________, no incluyéndose en las mismas ningún tipo de franquicia o limitación similar a deducir de las garantías indicadas ni ninguna disposición que requiera la sumisión a cualquier tipo de arbitraje. La Compañia aseguradora que suscribe considera que las cuantías establecidas cubren adecuadamente los riesgos asegurados.
La Póliza establece las siguientes cláusulas:
1. “La Compañia Aseguradora renuncia a cualquier derecho de subrogación contra los Estados Unidos de América que pueda provenir por razones diferentes a pago, bajo la Póliza epígrafiada.”
2. “Las partes se someten expresamente a la jurisdicción de los tribunales españoles y al derecho español para resolver cualquier cuestión relativa a la interpretación o aplicación de las cláusulas y condiciones de la Póliza.”
Y para que conste a los efectos oportunos, se firma el presente en __________________ a _______________ de _____________ 2.0___. _______________________________________
(END OF CERTIFICATE)
(End of Clause)
5352.247-9000 Air Safety.
As prescribed in 5347.4-100(a) insert the following clause in solicitations and contracts:
AIR SAFETY (MAR 2006)
(a) Contractor is obligated to comply with generally accepted standards of airmanship, training, and maintenance practices and procedures. Contractor must also satisfy Department of Defense (DOD) quality and safety requirements as described in 32 CFR Part 861, Section 861.4. In addition, contractor shall comply with all provisions of applicable statutes, tenders of service, and contract terms as such may affect flight safety, as well as with all applicable Federal Aviation Administration (FAA) Regulations, Airworthiness Directives, Orders, rules, and standards promulgated under the Federal Aviation Act of 1958, as amended. Compliance with published standards may not, standing alone, constitute compliance with generally accepted standards of airmanship, training, or maintenance.
(b) The cleanliness and orderliness of an aircraft, including the visible components and surfaces thereof affect the ability to inspect an aircraft, may be valid indicators of the overall maintenance level of an aircraft, and may have a direct effect on the security and confidence of passengers. Therefore, contractor's failure to keep and maintain all such components and surfaces of the aircraft used in performance of this contract clean, orderly, and in good state of repair may be deemed a failure to comply with generally accepted standards of maintenance to the extent the failure goes beyond mere cosmetic or housekeeping deficiencies and relates in some manner to confidence in the safety, maintenance, or airworthiness of the aircraft.
(c) Should the government determine that any of the following conditions exist, it may suspend or place in temporary nonuse status contractor's further performance of airlift transportation services for the DOD:
(1) Contractor's failure to meet any of the obligations imposed by the preceding two paragraphs.
(2) Involvement of one of contractor's aircraft in a serious or fatal accident, incident, or operational occurrence (regardless of whether or not such aircraft is being used in the performance of this contract).
(3) Any other condition that affects the safe operation of contractor's flights hereunder.
(d) Such suspension shall be accomplished pursuant to the Department of Defense Commercial Air Transportation Quality and Safety Review Program (32 CFR Part 861), which is hereby incorporated in this contract by reference, or any procedures that supersede same which may be adopted by the Commander (Air Mobility Command) from time to time. The suspension procedures, including the temporary nonuse, reinstatement and appeals processes, set out therein, are binding, final, and conclusive. In no event shall suspension or temporary nonuse proceedings, regardless of outcome, give rise to any liability on the part of the government.
(e) Suspension or temporary nonuse hereunder resulting in unavailability of contractor aircraft to perform service under this contract shall be treated as failure to maintain authorization to engage in air transportation under the clause of the contract entitled, "Requirement for Authorization to Engage in Air Transportation."
(End of Clause)
REQUIREMENT FOR AUTHORIZATION TO ENGAGE IN AIR TRANSPORTATION (MAR 2006)
(a) This contract is conditioned upon the Contractor (if the contractor is a team arrangement, applies to each team member) being an air carrier and holding a Certificate of Public Convenience and Necessity issued under Section 401 of the Federal Aviation Act (FAA of 1958, as amended), or otherwise authorized by the Department of Transportation (DOT) to engage in direct air transportation services, holding an Air Carrier's Operating Certificate issued by the FAA under Part 121 of the Federal Aviation Regulations (14 CFR 121) for airlift operated by the offeror, and participating in the CRAF, if applicable. Furthermore, the Contractor shall not be in a suspension or temporary nonuse status in accordance with the clause entitled "AIR SAFETY."
(b) If at any time during the performance period of this contract the contractor is not in compliance with the requirements of paragraph a above, including, but not limited to, instances when the certificate demonstrating compliance with paragraph a above is (i) suspended by the pertinent regulatory body for any period of time even though the effect of the suspension is stayed pending review by a court of competent jurisdiction, (ii) canceled or revoked in its entirety by the pertinent regulatory body even though the effect of the cancellation or revocation is stayed pending review by a court of competent jurisdiction, or (iii) such certificate or interim operating authority has expired and has not been renewed, then the contracting officer may elect any one or a combination of the following courses of action:
(1) Suspend the contractor from further performance of all or any part of this contract until such time as the suspension/temporary nonuse imposed by the pertinent regulatory body shall have expired or until such time as the suspension, temporary nonuse, cancellation, or revocation shall have been finally set aside, removed, or otherwise terminated. The period of suspension of this contract will begin at the time that notice thereof is given by the contracting officer to the contractor's designee named in accordance with paragraph of Section ____ of this contract. All flights which were scheduled to be flown during the time any such suspension is in effect will be canceled. A unilateral modification reflecting the cancellation and reducing the government's obligation accordingly will be issued by the contracting officer at the termination of the period during which this contract is suspended or after the expiration of the period of performance of this contract. Any such cancellation is not for the convenience of the government and is not a termination within the meaning of the clause entitled "Termination for Convenience of the Government (Fixed-Price)." Such cancellation will be accomplished at no cost to either party, and the substitute service provisions of this contract will not apply to such canceled flights.
(2) Exercise the government's rights under the clause of the contract entitled "Contractor's Failure to Provide Service."
(3) Terminate this contract in whole or in part under the procedures of the clause entitled "Default." If this contract is terminated for default pursuant to paragraph b, and if it is subsequently determined that termination for default is not appropriate, this contract shall then be considered to have been canceled pursuant to subparagraph b(4) below.
(4) Cancel this contract in whole or in part. Any such cancellation will be accomplished by the issuance of a unilateral modification and will not be a termination under the provisions of the clause entitled "Termination for Convenience of the Government (Fixed-Price)," and neither party will be liable to the other party for costs incurred as a result of such cancellation.
(End of Clause)
ALTERNATE I (MAR 2006). When using FAR Part 15 procedures and the air carriers hold a current Air Carrier Operating Certificate issued by the Federal Aviation Agency under a part other than Part 121 of the Federal Aviation Regulation, or a comparable foreign carrier operating certificate issued by a foreign government body, insert substantially the same paragraph (a) to the basic clause.
(a) This contract is conditioned upon the contractor being a commercial air taxi operator within the meaning of the Federal Aviation Act (FAA of 1958, as amended) and holding a current Air Carrier Operating Certificate in accordance with Part 127/135 of the Federal Aviation Regulations and holding a registration under Part 298 of the Department of Transportation (DOT) Regulations. Furthermore, the contractor shall not be in a suspension or temporary nonuse status in accordance with the clause entitled "Air Safety."
(End of Clause)
ALTERNATE II (MAR 2006). When using FAR Part 12 procedures, insert substantially the same paragraph (b) to the basic clause. When contracting with an air carrier modify subparagraph (a) of the clause as appropriate to identify the applicable certificate and issuing authority.
(b) If at any time during the performance period of this contract the contractor is not in compliance with the requirements of paragraph (a) above, including, but not limited to, instances when the certificate demonstrating compliance with paragraph (a) above is (i) suspended by the pertinent regulatory body for any period of time even though the effect of the suspension is stayed pending review by a court of competent jurisdiction, (ii) canceled or revoked in its entirety by the pertinent regulatory body even though the effect of the cancellation or revocation is stayed pending review by a court of competent jurisdiction, or (iii) such certificate or interim operating authority has expired and has not been renewed, then the contracting officer may elect any one or a combination of the following courses of action:
(1) Suspend the contractor from further performance of all or any part of this contract until such time as the suspension, temporary nonuse, cancellation, or revocation shall have been finally set aside, removed, or otherwise terminated. The period of suspension of this contract will begin when the contracting officer notifies the contractor. Any flights that were scheduled to be flown during the time any such suspension is in effect will be canceled and the government’s obligation reduced by all costs directly attributable to the canceled flights. Any such cancellation is not for the convenience of the government and will be accomplished at no cost to either party, and the substitute service provisions of this contract will not apply to such canceled flights.
(2) Exercise the government’s rights under the contract clause entitled “Contractor’s Failure to Provide Service.”
(3) Terminate this contract for cause in whole or in part under FAR clause 52.212-4, “Contract Terms and Conditions—Commercial Items.”
(End of Clause)
CONTRACTOR’S FAILURE TO PROVIDE SERVICE (MAR 2006)
(a) In the event that contractor's aircraft is unable to depart from any station, the government may invoke remedies which are set forth in this paragraph which will neither constitute a termination within the meaning of the clause entitled "Termination for Convenience of the Government," nor in any way diminish the government's rights under the clause entitled "Default." The rights and remedies of the government provided for in this paragraph are not exclusive and do not give rise to government liability for costs incurred and are in addition to any other government rights and remedies provided for by law or by this contract.
(b) Substitute Service. This term, as used herein, applies to the substitution of an aircraft to replace contractor's aircraft, which is unable to proceed from the departure station or from any en route station short of destination in accordance with schedules established pursuant to this contract. If the contractor fails to make an aircraft available for departure within 16 hours subsequent to scheduled departure time for a passenger flight or a mixed flight from an originating station or an en route station, or within 4 hours of a scheduled departure time for a passenger flight or a mixed flight from an en route station where no holding facilities for passengers are available, or within 24 hours of a scheduled departure time for a cargo flight from either the originating station or an en route station, or for any flight within such lesser time as may be agreed to by the contractor's designee, the government may: (1) cancel the requirement for further movement of the defaulted flight; (2) require the contractor to transport the defaulted passengers or cargo by substitute service within such additional time as the contracting officer may allow; (3) acquire substitute service from commercial sources; or (4) reschedule the defaulted flight or transport the defaulted passengers or cargo, or any portion thereof, itself. The exercise of any of these options will be in accordance with the following:
(1) In the event that the requirement for further movement of the defaulted flight is canceled, the number of passengers equal to the Guaranteed Allowable Cabin Load (GACL) for the flight involved, or the number of pounds of cargo equal to the GACL of the flight involved, or the number of miles for the flight involved, will be subtracted from the government's guarantee. Any canceled requirement will be deleted from the contract by unilateral modification. If the failure to depart was from the originating station, contractor will not be paid any amount for the flight involved. If the failure to depart was from an en route station, the contractor will be paid at the AMC negotiated uniform rate for that portion of the trip over which he did transport the passengers or cargo.
(2) If the contractor is required to transport the passengers or cargo of the defaulted flight by substitute service within such additional time as the contracting officer may allow, the contractor shall arrange and pay directly all costs involved in the transportation by the substitute aircraft. In this event, the contractor will be paid the full contract price for the flight involved, irrespective of the amount paid by him for this transportation by substitute aircraft. The substitute aircraft provided by the contractor must be of like type, configured in accordance with the applicable specifications, and must be approved by the contracting officer. In lieu of, or in addition to, providing the above type substitute service, the contractor may, at his own expense, purchase the amount of space, by common carriage or otherwise, needed for the movement of the passengers or cargo of the defaulted flight. The purchase of such space must be approved by the contracting officer and must be obtained only from American Flag carriers, except that in the event an American Flag carrier is unavailable or not reasonably available for point-to-point substitute service within an overseas area, upon prior authorization of the contracting officer, the contractor may use a Foreign Flag schedule carrier for substitute service on an exception basis only and provided the requirements of the clause entitled "Preference for United States Flag Air Carriers," are complied with. In such event, contractor would be paid the contract price for the involved transportation. If contractor transports by purchase of common carriage only a part of the number of passengers or amount of cargo of the defaulted flight, he will only be paid for those passengers or cargo so transported, and the passengers or cargo not transported shall be deducted from the government's guarantee.
(3) The government may purchase substitute service from commercial sources. This can be by a substitute commercial aircraft or by the purchase from commercial sources of sufficient space to transport by common carriage or otherwise, the number of passengers or amount of cargo involved in the defaulted flight. In either event, the substitute service shall be deducted from the government's guarantee and the contractor would be charged by the government, any amount that the government had to pay to commercial sources which is in excess of the contract price for the transportation of the passengers or cargo involved for the distance involved. (If this substitute service is obtained for only a portion of a trip as provided in the contract, the contract price will be prorated for the distance involved in determining the amount due to the government.) Contractor will not be paid any amount for the defaulted flight except that he will be paid at the AMC negotiated uniform rate for that portion of the trip, if any, over which he did transport the passengers or cargo on the flight involved. The contractor shall provide all services normally provided in connection with flights operating under this contract. In the event the defaulted flight was to be performed between military bases and the government procures common carriage substitute service, the defaulting contractor shall be responsible for the transportation between the military bases and the commercial terminal.
(4) The government may, in its discretion, elect to either reschedule the defaulted flight to a later time within the performance period of the contract or may move these passengers and/or this cargo, or any portion thereof. In this event, the number of passengers equal to the GACL for the flight involved, or the number of pounds of cargo to the GACL of the flight involved, or the number of miles for the flight involved will be subtracted from the government's guarantee and the contractor will be charged, by the government, the excess, if any, of the charge for this movement as computed under the provisions of DOD Rates (http://public.amc.af.mil/Business/fm/rates.htm) over the contract price. If this movement is utilized for only a portion of a trip as provided in the contract, the contract price will be prorated for the distance involved in determining the amount due the government. Contractor will not be paid any amount for transportation of the passengers or cargo of the defaulted flight except that he will be paid at the AMC negotiated uniform rate for that portion of the trip, if any, over which he did transport said passengers or cargo in the flight involved.
(c) The contracting officer may permit the contractor to provide services with substitute aircraft having a lower Allowable Cabin Load (ACL). When such substitution of aircraft is permitted, the contractor shall be reimbursed at the rate per ton/pax mile established in the original award times the lesser ACL with a corresponding reduction in the government's guarantee. In addition or as an alternative to providing substitute aircraft having a lower ACL, the contracting officer may permit the contractor to acquire, at his own expense, the amount of space, by common carriage, needed for movement of the pax or cargo equal to the ACL of the aircraft originally scheduled for the flight, in which event the contractor will be paid at the contract rate for the pax and/or cargo within the GACL which are actually transported. The contracting officer may also permit the contractor to provide services with substitute aircraft having a higher ACL than the aircraft required for performance of services under the contract. In this event, the contractor will be reimbursed only the contract price for the flight as originally awarded.
(d) The contracting officer, in making his decisions and selections for substitute service, will use his discretion in such a manner as to mitigate contractor's liability for excess costs when reasonably possible. However, military needs and urgency will be the prime consideration in the exercise of this discretion.
(e) The provisions of Section C, Performance Work Statement, relative to contractor's responsibility for care of passengers, and for providing meals and billets, apply to all situations discussed in this clause, wherein the contractor failed to depart as scheduled. Contractor shall retain responsibility for passengers until such time as they are moved by the contractor or the government, or the requirement is canceled by the government.
(f) In the event the contractor fails to deliver any part of the GACL (pax or cargo) to manifested destination due to an accident, contractor will be paid at AMC negotiated uniform rate only for that amount of pax or cargo delivered to manifested destination.
(End of Clause)
ALTERNATE I (MAR 2006). When using FAR Part 15 procedures for domestic charter airlift transportation, replace paragraphs (b) through (f) of the basic clause by inserting paragraph (b) to the basic clause.
(b) Substitute Service. This term, as used herein, applies to the substitution of an aircraft to replace contractor's aircraft, which is unable to proceed from the departure station or from any en route station short of destination in accordance with schedules established pursuant to this contract. If the contractor fails to make an aircraft available for departure as required by the flight schedules, the government may: (1) cancel the requirement for further movement of the defaulted flights; (2) require the contractor to transport the defaulted passengers or cargo by substitute service within such additional time as the contracting officer may allow; (3) acquire substitute service from commercial sources; or (4) reschedule the defaulted flight or transport the defaulted passengers or cargo, or any portion thereof, itself. The exercise of any of these options will be in accordance with the following:
(1) In the event that the requirement for further movement of the defaulted flights is canceled, the number of miles/trips for the flight involved, and directed landings (if applicable) will be subtracted from the government's guarantee. Any canceled requirement will be deleted from the contract by unilateral modification.
(2) If the contractor is required to transport the passengers or cargo of the defaulted flights by substitute service within such additional time as the contracting officer may allow, the contractor shall arrange and pay directly all cost involved in the transportation by the substitute aircraft. Contractor will be paid, in this event, the full contract price for the flight involved, irrespective of the amount paid by him for this transportation by substitute aircraft. The substitute aircraft provided by the contractor must be of like type, configured in accordance with the applicable specifications, and must be approved by the contracting officer. In lieu of, or in addition to, providing the above type substitute service, the contractor may, at his own expense, purchase the amount of space, by common carriage or otherwise, needed for the movement of passengers or cargo of the defaulted flight. The purchase of such space must be approved by the contracting officer. In such event, contractor would be paid the contract price for the involved transportation.
(3) The government may purchase substitute service from commercial sources. This can be by a substitute commercial aircraft or by the purchase from commercial sources of sufficient space to transport by common carriage or otherwise, the number of passengers or amount of cargo involved in the defaulted flight. In either event, the substitute service shall be deducted from the government's guarantee and the contractor would be charged by the government, any amount that the government had to pay to commercial sources which is in excess of the contract price for the transportation of the passengers or cargo involved for the distance involved. Contractor will not be paid any amount for this defaulted flight. The contractor shall provide all services normally provided in connection with flights operating under this contract.
(4) The government may, in its discretion, elect to either reschedule the defaulted flight to a later time within the performance period of the contract or may move these passengers and/or this cargo, or any portion thereof. In this event, the number of miles/trips for the flight involved will be subtracted from the government's guarantee and the contractor will be charged, by the government, the excess, if any, of the charge for this movement over the contract price. Contractor will not be paid any amount for transportation of passengers or cargo of the defaulted flight.
(End of Clause)
ALTERNATE II (MAR 2006). When using FAR Part 12 procedures, replace paragraphs (a) through (f) of the basic clause and insert paragraphs (a) and (b) to the basic clause.
(a) In the event the contractor’s aircraft is unable to depart from any station, the government may invoke the remedies set forth in this clause, which will not constitute a termination under FAR clause 52.212-4, “Contract Terms and Conditions—Commercial Items.” The rights and remedies provided in this clause are not exclusive, do not give rise to government liability for costs incurred, and are in addition to government rights and remedies provided by law or by this contract.
(b) Substitute Service. This term means substitution of an aircraft to replace contractor’s aircraft, which is unable to perform the required services. If the contractor fails to make an aircraft available to perform services under the terms of the contract, the government may:
(1) Cancel the requirement for further performance of the defaulted flight or services. In that event, the government’s obligation will be reduced by the costs directly attributable to the canceled flight or services.
(2) Require the contractor to obtain substitute service from another DOD-approved carrier to perform the services within such additional time as the contracting officer may allow. The contractor shall arrange for and pay directly all costs involved in performing the services by substitute aircraft. The government will pay the contractor the contract price for the services, irrespective of the amount the contractor pays for the substitute service. The substitute aircraft provided by the contractor must be of like type, must be configured in accordance with the applicable specifications, and must be approved by the contracting officer. In lieu of, or in addition to, providing the above substitute service, the contractor may, at his own expense, purchase the amount of space by common carriage or otherwise needed to transport the passengers or cargo from the defaulted flight. The contracting officer must approve purchase of such space. The government will pay the contractor the contract price for the services, irrespective of the amount the contractor pays for the space.
(3) Purchase substitute service from commercial sources. This may include use of substitute commercial aircraft or purchase of sufficient space to transport by common carriage or otherwise the passengers or cargo from the defaulted flight. In either event, the value of the service will be deducted from the contract minimum (if applicable). The contractor will not be paid for the defaulted flight but will be charged any amount in excess of the contract price that the government had to pay for the substitute service.
(4) Elect to either reschedule the defaulted flight to a later time or move the passengers and/or cargo, or any portion thereof, itself. In the latter event, the value of the service will be deducted from the contract minimum (if applicable). The contractor will not be paid for the defaulted flight but will be charged any amount in excess of the contract price that the government had to pay to transport the passengers and/or cargo.
(End of Clause)
(b) Each MAJCOM SCO shall:
(1) Designate a command focal point to coordinate all contingency planning within the MAJCOM and to facilitate implementation of contracting support of exercises and actual contingency operations;
(2) Ensure the focal point attends the Contingency Wartime Planning Course (CWPC) as soon as possible after assuming duties;
(3) Develop, review, and manage the MAJCOM COCSP;
(a) Contingency support for military operations: Contracting activities will make appropriate contracting inputs to OPLANs and dedicate a section of local support plans to contracting support for military operations.
(1) Review of OPLANs. The chief of the contracting office or contracting squadron commander is responsible for reviewing all OPLANs that task contracting support. When a MAJCOM SCO tasks a contracting office with specific deployment support responsibilities, that MAJCOM will ensure the office includes such tasking in its local plans. The chief of the contracting office or contracting squadron commander will consider the following:
(c) For Secretary of Defense declared contingency operations, it may also be possible to request relief from FAR, DFARS, and AFFARS requirements established as a result of statutes, Executive Orders, or other Executive Agency regulations (e.g., Department of Labor, Small Business Administration, etc.). Relief from these requirements could take considerable time to obtain, so their identification prior to declaration of a contingency operation is essential. SAF/AQC will be responsible for drafting legislative packages for relief in periods of National Emergency from statutes, Executive Orders, and Executive Agency regulations. MAJCOM SCOs are encouraged to make recommendations for FAR, DFARS, and AFFARS requirements for which relief should be requested in support of contingency operations.
(2) Contract action reporting and disposition: Report all contract actions and dollar amounts to the contracting activity that issued the PIINs used during the deployment; total actions and dollars will be reported by office chiefs to the supported CINC/MAJCOM SCO prior to departure.
(3) After-action report. Within 30 days after redeployment, each CCO shall submit an electronic after-action report to their parent MAJCOM Superintendent who will in turn forward the report to the theater MAJCOM SCO supporting the AOR. MAJCOM Superintendents will also forward reports to SAF/AQCK. After-action reports shall specifically address:
MP 5301.602-3 Changes:
1. The contracting officer initiates an investigation by requesting the office(s) involved to provide documentation and evidence concerning the unauthorized commitment.
2. The commander of the organization in which the unauthorized commitment occurred ensures the following are provided to the contracting officer within 30 days of the request:
a. A report on the circumstances surrounding the unauthorized commitment, to include a statement on corrective actions taken to prevent a recurrence of the event and a description of disciplinary action taken, or an explanation why no action was taken.
b. A signed statement from the individual who made the unauthorized commitment detailing the incident. If a statement is unavailable, the commander explains in the report the reason for not providing the individual's statement.
c. Relevant documentation and records, (e.g., evidence the supplies or services were received, accepted, and were of benefit to the government, contractor correspondence and invoice, funds availability statement, etc.).
3. The contracting officer analyzes the documentation and, if ratification is appropriate, prepares a file. The file contains the following:
b. Legal opinion.
c. Contractor's invoice with relevant correspondence.
d. The report by the organization in which the unauthorized commitment occurred--prepared in accordance with paragraph 2 above. Include any attachments to the report.
4. The ratification statement reads substantially as follows:
“Pursuant to the authority vested in me by AFFARS 5301.602-3(b)(3), I hereby ratify the act of (name, title, grade, and organization), who on or about (date) authorized (company name) to (commitment). The dollar value of the transaction is (dollar amount). Ratification is deemed to be in the best interest of the government and is within the authority and limitations of FAR 1.6 and supplements thereto.”
5. With the exception of PEO programs, for ratification of unauthorized commitments equal to or greater than $25, 000 of appropriated funds, the contracting officer shall forward the file through the wing commander for review by the SCO. For organizations that do not have a wing commander, forward the file to the Center technology/functional director for review. The contracting officer should include words substantially as follows:
"Attached is the ratification file concerning the unauthorized contracting act of (name) for your review. If you concur ratification of this act is appropriate, this file will be forwarded to the Head of the Contracting Activity (HCA) or designee (if delegated) for final approval."
6. For PEO programs, follow the approval process established by the HCA (PEO).
7. When an unauthorized commitment occurs within a tenant organization and the tenant organization has its own contracting authority, the ratification shall be processed through the tenant’s chain of command. For tenant organizations without contracting authority, the host command shall investigate, process, and, if appropriate, approve the ratification. The host command shall provide copies of the ratification to the tenant’s parent organization.
8. After execution of the ratification statement by the appropriate authority, the contracting officer processes the ratification action. A copy of the ratification statement is included in the contract file. A copy of the contract is placed in the ratification file. Files are maintained in the contracting office in accordance with AFMAN 37-123. A copy of the signed contract action executing the approved ratification shall be sent to the SCO.
MP 5301.9001 Changes:
MAJCOM/DRU Review of Contracts Below the Clearance Thresholds
MP5301.9001 Agency Procedures
(a) The SCO will e-mail SAF/AQCP by 1 Nov, describing the number of occasions that they requested clearance review of acquisitions below the established thresholds for each installation or unit during the previous fiscal year. If none were requested, submit a negative reply for the command and no other action is required. This e-mail will include as a minimum, the following information:
(1) Unit Identifier
(2) Number of occurrences listed by Contract or Order
(3) Value of the action
(4) Unit Threshold
(5) Description of the contract action
(6) Reason(s) for requesting the review
(7) Results of the review to include any action taken
(b) The SCO will send an e-mail notification to SAF/AQCP concurrent to the units’ notification when a threshold has been lowered below the $2M standard or was lowered from a previously increased threshold.
MP 5303 Changes:
Improper Business Practices and Personal Conflicts of Interest
(a) An employee who becomes aware of the need to disqualify themselves from participation in an acquisition to which they have been assigned should in accordance with DoD 5500.7-R paragraph 2-204c, 5 CFR 2635.604(b), and FAR 3.104-6 provide a written request for disqualification to their supervisor. This request should be routed through the servicing contracting office and staff judge advocate offices. The request will include the following data:
(1) Name of requestor;
(2) Current position/job title;
(3) Projected retirement date;
(4) Description of current or projected involvement with ongoing programs or new acquisitions for sought disqualification;
(5) Impact on program/unit mission if disqualification is granted;
(6) Proposed replacement individual for official acquisition duties; and
(7) Commander/Director recommendation.
(b) If the individual is serving as the chair of a source selection advisory council, under an active source selection, their “supervisor” for this purpose is the source selection authority.
(c) If the source selection authority is the MAJCOM/FOA/DRU/CC or CV, the request for disqualification shall be coordinated through the MAJCOM/FOA/DRU JA and the SCO/SCCO.
Requests for exception to FAR 3.601 shall be signed by the SCO/SCCO and submitted for approval to their respective Head of the Contracting Activity (HCA) for approval. The SCO/SCCO should review each contract action on a case-by-case basis to ensure no viable alternatives exist and that every effort is made to avoid any conflict of interest between the employees' interests and their government duties. Requests shall address the following:
(1) Description of requirement;
(2) Amount of the proposed contract and period of performance or delivery date;
(3) Contracting officer’s basis for determining the price fair and reasonable;
(4) Apparent contract awardee—Government employee’s name, grade/rank, duty/position title, organization and Date Of Expected Return From Oversees (DEROS);
(5) Determination that there is no conflict of interest;
(6) Explanation of the compelling reason why Government’s needs cannot otherwise reasonably be met (include description of efforts to obtain services from non-government personnel); and
(7) For recurring requirements, describe the steps that will be taken to avoid future awards to a Government employee.
(a) The contracting officer shall forward the facts concerning a final conviction, to include a copy of the conviction, to SAF/GCR within 30 days after learning of the conviction. The contracting officer shall forward the report to the SCO within 10 calendar days after the contracting activity learns of the conviction.
MP 5306.304 Changes:
Other Than Full and Open Competition
MP5306.304 Approval for the Justification
(a)(1) The Chief of the Contracting Office will approve J&As not exceeding $500K. This authority may be delegated to the contracting officer, consistent with the warrant level of the contracting officer.
(a)(2) J&As for proposed contract actions over $500K but not exceeding $10M will be approved by the competition advocate except as follows:
(i) ACC: For Air Intelligence Agency (AIA) Special Access Programs not exceeding $10M, the AIA Contracts Division Chief will approve as competition advocate. For all other actions HQ ACC SCO will approve the J&A.
(ii) AFSPC: For SMC, SMC SCO is the approval authority. For all other AFSPC organizations HQ AFSPC SCO is the approval authority.
(a)(3) J&As for actions over $10M but not exceeding $75M will be approved by the head of the procuring activity or designee, except as follows:
(i) ACC: For AIA Special Access Programs, the AIA Commander will approve the J&A.
(ii) For PEO programs and acquisitions, the PEO, or their designated alternate is the J&A approval authority.
(a)(4) J&As for actions exceeding $75M will be approved by the Senior Procurement Executive (SPE)(ASAF(A)). The contracting officer should submit justifications requiring approval by the SPE to SAF/AQCK. Allow 30 days for staffing and SPE approval after receipt by SAF/AQCK. The HCA or an HCA-designated official may authorize solicitation release after the justification is reviewed for adequacy and forwarded to SAF/AQCK. Questions or concerns with regard to processing a J&A for SPE approval should be referred to SAF/AQCK. For additional solicitation release requirements, see AFFARS 5307.104(iv).
MP 5315.3 Changes:
4.2. Protection of Source Selection Documentation
4.2.1. The source selection authority shall --
126.96.36.199. Ensure all involved in the source selection are briefed and knowledgeable of Subsection 27(a) of the Office of Federal Procurement Policy Act (41 USC Sec. 423 and FAR 3.104) regarding unauthorized disclosure of source selection information.
188.8.131.52. Ensure that all persons receiving source selection information are instructed to comply with applicable standards of conduct (including procedures to prevent the improper disclosure of source selection information), and sign the Source Selection Information (SSI) Briefing Certificate
(Attachment 1). Included with the certificate, is a sample source selection cover sheet.
MP5315.306 -- Exchanges With Offerors After Receipt of Proposals.
184.108.40.206. Review all necessary information prior to entering discussions to determine if award without discussions is appropriate.45
5.6.6. Final Proposal Revision and Evaluation.51 The contracting officer shall obtain contract clearance approval in accordance with AFFARS 5301.9000. The Source Selection Authority shall then review all material and approve release of the Final Proposal Revision Request. The Source Selection Evaluation Team shall complete the proposal evaluation, incorporating the information provided through discussions and in the Final Proposal Revisions, as set forth in the evaluation criteria (Section M or equivalent provisions of the solicitation).
SOURCE SELECTION INFORMATION BRIEFING AND DEBRIEFING CERTIFICATES
Source Selection Information Briefing Certificate
Job Title: Organization:
1. I acknowledge I have been assigned to the source selection/position indicated above. I am aware that unauthorized disclosure of source selection or proprietary information could damage the integrity of this procurement and that the transmission or revelation of such information to unauthorized persons could subject me to prosecution under the Procurement Integrity Laws or under other applicable laws.
45INFORMATIONAL GUIDANCE: The Source Selection Evaluation Team may recommend award without discussions at the Decision Briefing. In this instance a competitive range determination is not required. However, when awarding without discussions, the team should obtain approval from the SSA first, then obtain contract clearance. This is more efficient than performing contract clearance first, and subsequently having the SSA determine that discussions are necessary.
Contract Audit Follow-up (CAFU)
MP5315.407-90 Contract Audit Follow-up (CAFU).
(a) This mandatory procedure implements OMB Circular No. A-50, Audit Follow-up, DODD 7640.2, Policy for Follow-up on Contract Audit Reports, and DODD 7650.3, Follow-up on GAO, DoD/IG, and Internal Audit Reports. These directives establish responsibilities, reporting requirements, and follow-up procedures for contract audit reports issued by the General Accounting Office (GAO), Department of Defense Inspector General (DoD/IG), Defense Contract Audit Agency (DCAA), and the other internal audit agencies (such as the Air Force Audit Agency (AFAA)).
(c) Contract Audit Follow-Up (CAFU) requirements for DCAA audit reports:
(1) MAJCOM RESPONSIBILITIES: MAJCOM Directors of Contracting shall –
(A) Monitor and ensure proper and timely resolution and disposition of contract audit reports within their commands.
(B) Maintain current records on all reportable audits, from receipt through disposition. For open reports, this includes written milestone plans comprised, as a minimum, of target resolution and disposition dates.
(C) Ensure that acquisition personnel within their command are properly trained in the use of contract audit reports and the requirements of the contract audit follow-up program.
(D) In accordance with DODD 7640.2, ensure that the MAJCOM’s semi-annual contract audit follow-up status report is prepared in accordance with these procedures using the web-based CAFU tool located on the DCMA website. (Note: The CAFU User’s Manual and Guide can be accessed via the AFMC CAFU website.)
(E) Direct periodic evaluations of the command’s CAFU program to determine whether they are adequate and result in timely, appropriate resolution and disposition of audit reports.
Review of Unsolicited Proposals
MP5315.606 Agency Procedures
(a) Headquarters Air Force (HAF) organizations that receive submissions from interested parties that are considered unsolicited proposals (UPs) as defined at FAR 15.6 shall forward them to SAF/AQCK for disposition. SAF/AQCK shall forward the submission to the proper contracting activity within the Air Force to evaluate and process the proposal.
(1) Unless otherwise directed by SAF/AQC, the cognizant point of contact responsible for receipt and disposition of UPs described in paragraph (b) below shall provide the Air Force’s response to offerors.
(b) MAJCOMs/DRUs and their contracting units, are considered contact points for UPs received at their respective base/activity. Contact points will:
(2) Notify the MAJCOM/DRU contracting office about any UP that requires command-wide consideration.
(3) Maintain an accurate and complete record of the disposition of all UPs received.
(4) Ensure the appropriate evaluation office is aware of the FAR guidance for evaluating UPs and the prohibitions and rules regarding copying, disclosing, and using restricted data contained in the proposal.
(5) Ensure evaluators provide supporting rationale for their conclusions and recommendations. If the recommendation is to accept the UP, ensure evaluators indicate whether funds are currently available or programmed.
(6) Notify the offeror concerning results of the evaluation within 30 working days from receipt of the UP. When the evaluation cannot be completed within 30 working days, send the offeror an interim reply to include an estimated completion date.
(7) If the UP is acceptable, advise the offeror that the favorable evaluation does not, in itself, contractually bind the government.
MP 5317 Changes:
Special Contracting Methods
MP5317.70 Proper Use of Non-DoD Contracts
(a) Applicability and Definitions:
(1) These procedures apply to the use of non-DoD contract vehicles for all acquisitions of supplies or services above the Simplified Acquisition Threshold (SAT), other than procurements of the following services:
(A) Printing, binding, or blank-book work to which 44 U.S.C. 502 applies: and
(B) Services available under programs pursuant to 2 U.S.C. 182c (section 103 of the Library of Congress Fiscal Operations Improvement Act of 2000 (Public Law 106-481)).
(2) Direct Acquisition - a task or delivery order placed by an Air Force official against a contract vehicle established outside the DoD.
(3) Assisted Acquisition - a contract awarded or task or delivery order placed on behalf of DoD by an official of the United States outside DoD.
(b) Direct Acquisition of Supplies - For all direct acquisition orders of supplies placed against non-DoD contracts (including GSA Federal Supply Schedule (FSS) Orders), and for each Blanket Purchase Agreement issued against a GSA FSS, the Program Manager, Project Manager (for Medical Treatment Facilities (MTF), the Medical Logistics Flight Commander, requirement initiator (as appropriate), or the Contracting Officer must document the contract file to reflect:
(1) The order is in the best interest of the Air Force. Consider such factors as satisfying customer requirements, cost effectiveness and price, delivery schedule, non-availability of a suitable contract within DoD, contract administration, small business opportunities, and any other factors as applicable.
(2) The supplies to be provided are within the scope of the basic contract.
(3) Funding is available and appropriate for the acquisition. The financial management organization shall validate that the funds are appropriate for the acquisition.
(4) Any terms, conditions and requirements unique to DoD or the Air Force are incorporated into the order to comply with applicable statutes, regulations and directives (e.g. the requirement that the items listed in DFARS 225.7002-1 and procured with DoD funds be of domestic origin, unique identification requirements, etc.).
(5) Certify that procedures above have been followed.
(c) Assisted Acquisition of Supplies - The requiring organization (for the Air Force medical service at local level the Medical Logistics Flight Commander, and at Air Staff level, the Chief, Procurement Services at the Air Force Medical Logistics Office) shall coordinate with their servicing Air Force contracting and financial management organization on all supplies requirements proposed for award by non-DoD organizations using Air Force funds. The contracting organization shall advise the requiring organization as to the various contractual options available to obtain the supplies and any DoD terms and conditions that must be incorporated into the resultant order or contract. The requiring organization shall document the following:
(1) Use of a non-DoD contract is in the best interest of the Air Force considering the factors of satisfying customer requirements, cost effectiveness and price, delivery schedule, non-availability of a contract within DoD, contract administration, and any other factors as applicable.
(2) The supplies to be provided are within the scope of the contract to be used. Coordinate with the non-DoD Contracting Officer to verify the requirement is within the scope of the assisting agency’s selected contract.
(3) Funding is available and appropriate for the acquisition. The financial management organization shall validate that the funds are appropriate for the acquisition.
(4) Any terms, conditions and requirements unique to DoD or the Air Force that must be incorporated into the resultant order or contract to comply with applicable statutes, regulations and directives (e.g. the requirement that the items listed in DFARS 225.7002-1 and procured with DoD funds be of domestic origin, unique identification requirements, etc.)
(5) Certify that procedures above have been followed.
(d) For interagency acquisitions subject to Economy Act (31 U.S.C. 1535), comply with the D&F requirements at FAR 17.503. A sample D & F template for Economy Act transactions is contained at AFFARS IG5317.5. Note - Assisted Acquisitions by GSA are authorized by other statutes, e.g. Federal Property and Administrative Services Act, Clinger-Cohen Act, Etc, and are not subject to the Economy Act, so no Economy Act D & F is needed. Similarly, health care supplies and equipment purchased under sharing agreements between the Air Force and the Veterans Administration pursuant to 38 U.S.C. 8111 are not subject to the Economy Act and no Economy Act D & F is needed (although other procurement laws and regulations still apply.)
(e) Direct Acquisition of Services - The Contracting Officer must ensure compliance with AFFARS 5337.170-3(a), Approval Requirements, for all orders of services placed against non-DoD contracts. The Program Manager, Project Manager (for Medical Treatment Facilities (MTFs), the Medical Logistics Flight Commander), requirement initiator (as appropriate) or the Contracting Officer must document the contract file to reflect:
(1) The order is in the best interest of the Air Force. Consider such factors as satisfying customer requirements, cost effectiveness and price, delivery schedule, non-availability of a suitable contract within DoD, contract administration, small business opportunities, and any other factors as applicable.
(2) The services to be provided are within the scope of the basic contract.
(3) Funding is available and appropriate for the acquisition. The financial management organization shall validate that the funds are appropriate for the acquisition.
(4) Any terms, conditions and/or requirements unique to DoD are incorporated into the order to comply with applicable statutes, regulations and directives (e.g. the requirement that the items listed in DFARS 225.7002-1 and procured with DoD funds be of domestic origin, unique identification requirements, etc.)
(5) Certify that procedures above have been followed.
(f) Assisted Acquisition of Services - Ensure compliance with AFFARS 5337.170-3, Approval Requirements, for all services requirements that are proposed for award by non-DoD organizations using Air Force funds. AFFARS 5337.170-3 (b) requires the Services Designated Official (SDO) to approve any services acquisition request to be purchased using a contract or task order being awarded by an agency other than DoD. Additionally, the requiring organization shall coordinate with their servicing Air Force contracting and financial management organization. The contracting organization shall advise the requiring organization as to the various contractual options available to obtain the services and any DoD terms and conditions that must be incorporated into the resultant order or contract. The requiring organization shall then document the following in the acquisition plan or in a MFR:
(1) Use of a non-DoD contract is in the best interest of the Air Force considering the factors of satisfying customer requirements, cost effectiveness and price, delivery schedule, non-availability of a contract within DoD, contract administration, and any other factors as applicable.
(2) The services to be provided are within the scope of the contract to be used. Coordinate with the non-DoD Contracting Officer to verify the requirement is within the scope of the assisting agency’s selected contract.
(4) Any terms, conditions and/or requirements unique to DoD that must be incorporated into the resultant order or contract to comply with applicable statutes, regulations and directives (e.g. the requirement that the items listed in DFARS 225.7002-1 and procured with DoD funds be of domestic origin, unique identification requirements, etc.)
(5) Certify that procedures above have been followed.
The Program Manager, Project Manager or requirement initiator (as appropriate) for the acquisition must sign the MFR or acquisition plan. The financial management organization shall then accomplish a validation review to ensure the appropriation is correct for the acquisition. The SDO must approve the MFR or acquisition plan prior to transmittal of the requirement and funding document outside the Air Force to the non-DoD agency. Provide a copy of the MFR to the assisting agency.
For interagency acquisitions subject to Economy Act (31 U.S.C. 1535), comply with the D&F requirements at FAR 17.503. Assisted acquisitions by GSA are authorized by other statutes and are not subject to the Economy Act. A sample D&F template is contained at AFFARS IG5317.5. Note - this template could also be modified for use as a MFR to document the proper use of non-DoD contracts.
MP 5325 Changes:
MP5325.103 Exceptions to Buy American Act – Supplies
(a) When a determination of nonavailability is required by FAR 25.103 and DFARS 225.103(b)(i), the contracting officer should prepare a request for nonavailability determination, substantially in the form described this section, and process for approval in accordance with DFARS 225.103(b)(ii) . Each request should identify the proposed acquisition by applicable purchase request or contract number and include:
MP 5328 Changes:
Bonds and Insurance
MP5328.305 Overseas workers’ compensation and war-hazard insurance
(d) Submit requests for waiver through the SAF/AQC Field Labor Advisor.
MP5328.310 Contract Clauses
(a) Proof of Insurance. When FAR 52.228-5, Insurance-Work on a Government Installation, is included in a contract, contracting officers shall request and receive proof of insurance from prime contractors before the contractor begins work on the installation. Retain proof of insurance in the contract file. Alternatively, the contracting officer may use the Notification of Compliance with Contract Insurance Requirements template to request and receive the contractor’s notification of insurance coverage in lieu of proof of insurance.
Funding Exemptions. Contracting activities shall not issue a solicitation for supplies or services without a funding document or a written statement of funds availability unless the purchase request is for:
(a) A requirement chargeable to the Air Force Stock Fund and the local primary stock fund manager (of a stock fund division that is exempt from apportionment control) furnishes the following signed certificate to the contracting office:
“I certify that all purchase requests for [insert stock fund item names] stock fund items for fiscal year [insert fiscal year] are provided for in the approved [insert name] operating program for fiscal year [insert fiscal year]. The proper accounting classification to be cited for the entire fiscal year is [insert classification].”
(c) A requirements type contract, which does not require a firm funded order at the time of contract execution;
(e) Requirements procured pursuant to the Special Acquisition Provisions below.
Special Acquisition Provisions. When a purchase request is for one of the requirements listed in (a) through (d) below, the base contracting activity may issue a solicitation, receive and open offers, and prepare final award documents (including contract clearance, if required). However, the contract shall not be signed by the contracting officer; delivered to the contractor; nor will the contractor be notified that it has been awarded a contract until funds have been certified by the accountable Air Force Official. Since contract award will not be made subject to the availability of funds, the procedure and clause prescribed in FAR 32.703-2 (a) shall not be used. If additive or deductive items are included in the bid schedule, the contracting officer shall determine the amount of available funds before bid opening/RFP closing:
(a) A project in connection with family housing and/or mobile home parks, upon direction by AF/CE;
(b) O&M funded minor construction to commence in the next fiscal year, if the approving authority certifies that the requirement has a high enough priority to ensure that it will not be canceled when the next fiscal year funds become available. Current fiscal year funds may be used if they become available before the end of the fiscal year, a significant portion of the work is initiated/completed by the end of the calendar year, and the contract is obligated;
(c) A military construction program (MCP) project when the contracting office receives written notification that the Air Force has responsibility for the acquisition, that the project has been approved for acquisition, and funds are available and being forwarded through channels. This exception still applies when the purchase request funding is limited to the amount of the initial Government estimate and the latest estimate, based on actual design and engineering information, exceeds the amount of the purchase request. In such cases, solicit bids or proposals before requesting additional funds; and
(d) A minor construction project supported by a statement that funds are being held in reserve at HQ USAF or MAJCOM and will be made available when needed to award the contract.
Facility Project Requirements. The MAJCOM Civil Engineer, Director of Contracting, and Comptroller may jointly agree in writing to authorize base contracting activities to issue solicitations for facility project requirements when it is anticipated that the contract will be awarded in the current fiscal year but funds are not yet available. Use of this authority is subject to the following:
(a) MAJCOMs should carefully consider the use of this authority. It should only be used for non-complex projects for which estimated bid or proposal preparation costs are relatively low in relation to the estimated cost of the project. Also, MAJCOMs should consider imposing a limit on either the project value or the aggregate value of all projects solicited using this procedure;
(b) Projects that may be solicited under this authority include those for maintenance, repair and minor construction, facility O&M projects, and environmental restoration and compliance projects, which the MAJCOM civil engineer has reviewed, verified as a bona fide need, and determined that there is a reasonable likelihood that the project will be funded in the annual year-end program.
(c) MAJCOM Civil Engineering and Comptroller officer will identify to contracting the projects selected to be solicited under this authority, in adequate time to permit solicitation and processing. MAJCOM Contracting, Comptroller, and Civil Engineering shall establish a reasonable cut-off date for cancellation of solicitations, in order to have time to open the offers and process the contract award before the end of the fiscal year;
(d) Offers should not be opened until the funds certifying official either certifies that funds are available, or notifies the contracting officer that there is a reasonable assurance that funds will be available before award. If a reasonable assurance notification is received from the funds certifying official, the offers may be opened and processed up to the point of award. However, the contract shall not be signed by the contracting officer, delivered to the contractor, nor will the contractor be notified that it has been awarded a contract until funds have been certified by the accountable Accounting and Finance Officer. If funds or a “reasonable assurance” notification cannot be provided by the established cut-off date, the solicitation will be cancelled before opening of offers; and
(e) Solicitations issued under this authority shall contain a notice on the cover sheet and in Section L as follows:
“Notice to Offerors: Funds are not presently available for this project. No award will be made under this solicitation until funds are available. The Government reserves the right to cancel this solicitation, either before or after the closing date.”
MP 5333.104 Changes:
Protests to the GAO
MP5333.104 Protests to the GAO.
(2) SAF/AQCK serves as the contact point with the GAO for protests where an attorney does not represent the protester. SAF/AQCK’s overnight delivery address is: SAF/AQCK, Attn: Protest Element, 1500 Wilson Blvd, Suite 700, Arlington VA 22209. The phone number is (703) 588-7040 and the facsimile number is (703) 5881055.
(3) The Commercial Litigation Division, Air Force Legal Services Agency (AFLSA/JACN) represents the Air Force when an attorney represents a protester. AFLSA/JACN’s overnight delivery address is: AFLSA/JACN, Attn: Carolyn Smith, 1501 Wilson Blvd., Suite 606, Arlington, VA 22209-2403. The main phone number is (703) 696-9063 and the facsimile number is (703) 696-9084.
(4) The contracting officer shall send any communication to the GAO through SAF/AQCK or AFLSA/JACN and forward any inquiry received from an attorney representing a protestor or interested party to SAF/AQCK or AFLSA/JACN.
(5) The focal point is the designated individual at each MAJCOM, DRU, or AFMC Center who receives communication from SAF/AQCK concerning protests against Air Force solicitations or awards.
(6) The cognizant legal office is the office that provides legal support to the contracting activity that received the protest. An attorney from the cognizant legal office will draft the memorandum of law and otherwise support the defense of the protest. AFLSA/JACN will provide protest guidance to attorneys.
(b) Initial Actions upon Receipt of Protest
(1) SAF/AQCK will:
(i) Notify the focal point when a protest has been lodged with the GAO. The focal point shall immediately notify its cognizant legal office and the contracting activity.
(ii) Inform the focal point whether AFLSA/JACN or SAF/AQCK will represent the Air Force in the protest.
(2) The contracting officer shall, within one business day of receiving the protest:
(i) Forward a copy of the protest to the cognizant legal office.
(ii) Provide a copy of the protest (or a redacted copy if the protest is designated as containing protected material) to the awardee, or if no award has been made, to all offerors who appear to have a reasonable prospect of receiving award. Provide to SAF/AQCK or AFLSA/JACN any responses received from the awardee or these offerors.
(iii) Email to email@example.com (recipients are SAF/AQCK and AFLSA/JACN) the name, phone number, fax number, and e-mail address of the contracting officer and the local attorney assisting in the protest defense.
(3) The contracting officer shall, within three business days of receiving the protest, consult with the cognizant legal office to determine:
(iii) If a stay is not required, whether a suspension of performance or termination of the contract is in the best interests of the Air Force.
(iv) Whether corrective action should be taken.
(v) Whether summary dismissal should be requested.
(A) The GAO may summarily dismiss a protest that on its face is untimely, fails to set forth a detailed statement of the legal and factual grounds of protest, or involves a matter outside of GAO’s jurisdiction (4 CFR 21.5).
(B) At the request of SAF/AQCK or AFLSA/JACN, the contracting officer shall prepare and forward documents supporting a summary dismissal request.
(C) SAF/AQCK or AFLSA/JACN may authorize the contracting activity to delay preparation of the agency report while the GAO considers a summary dismissal request.
(4) The contracting officer shall, within ten days after the Air Force receives the protest, provide the statement of facts and table of contents to the cognizant legal office.
(5) The contracting officer shall e-mail drafts of the initial legal memorandum, statement of facts, and table of contents (including a listing of any requested documents deemed irrelevant and being provided in a separate binder) to firstname.lastname@example.org (SAF/AQCK and AFLSA/JACN) (copying the focal point) as soon as practicable, but not later than 15 days after the Air Force is notified of the protest (or seven days from the date the express option is invoked by the GAO).
(c) Preparation of Agency Report
(i) The contracting officer shall prepare the agency report as a stand-alone report that can be submitted, “as is” by SAF/AQCK or AFLSA/JACN to the GAO.
(ii) The contracting officer shall prepare complete copies of the agency report for the GAO, the protester, each interested party, and either SAF/AQCK or AFLSA/JACN. In addition, except for DRUs and AFMC Centers, a copy of the agency report should be prepared for the focal point. The contracting officer shall ship all copies of the agency report to SAF/AQCK or AFLSA/JACN as directed; never to the GAO and other parties.
(iii) The contracting officer shall submit copies of the agency report in 3-ring binders, not contract folders. Label each binder with protester’s name, B-number, and name of intended recipient.
(iv) Documents shall be numbered, tabbed, and identified in the table of contents.
(v) Tabs 1 and 2 contain the legal memorandum and contracting officer’s statement of facts.
(vi) Tab 3 contains a copy of the protest.
(vii) The table of contents has five columns.
(A) The first column is labeled “TAB” and lists the tabs using whole numbers, without letters or decimals.
(B) The second column is labeled “DOCUMENT” and provides a brief description of the document or documents under the corresponding tab.
(C) The third column is labeled “DATE” and provides the date the document was generated, if known.
(D) The fourth column is labeled “WITHHELD FROM” and lists the name of any party not receiving the document under the corresponding tab (either because the party already has a copy of the document (e.g., solicitation) or because the document contains protected information and the party does not have counsel admitted under a protective order).
(E) The fifth column is labeled “PROTECTED” and indicates whether the document contains protected information.
(i) Legal Memorandum. The cognizant legal office will prepare the initial legal memorandum, which will include a legal analysis of each ground of protest.
(ii) Contracting Officer’s Statement of Facts
(A) While coordination with others involved in the procurement is essential, the actual drafting of the document is the responsibility of the contracting officer.
(B) The statement of facts is written in narrative form and contains three sections.
(1) The first section provides a one paragraph overview of the procurement including the type of solicitation protested; solicitation number and date issued; a description of goods or services being acquired; a description of the decision protested; the name of the successful contractor, if known; the amount of contract, as awarded and with options; the amount protester bid for basic contract and options; and other pertinent background information.
(2) The second section provides a chronology of events that includes the date and a brief description of significant events in the procurement. The chronology may include the date bids or proposals were originally due; the date final proposal revisions were requested; the date final proposal revisions were received; the date of award; and other pertinent dates.
(3) The third section describes and responds to all allegations raised in the protest. The contracting officer shall address each allegation separately and should cite specific language or facts relied upon by the protest allegation and relevant language or facts supporting the Air Force position. Appropriate references to the FAR should also be made.
(C) References to documents contained elsewhere in the agency report shall be followed by citations, including tab number and page number.
(iii) Other Documents
(A) The agency report includes, as appropriate: the bid or proposal submitted by the protester; the bid or proposal of the firm which is being considered for award, or whose bid or proposal is being protested; all evaluation documents (including individual evaluator ratings, scores, analyses, worksheets, and interim and final ratings); the solicitation, including amendments; source selection and technical plans; abstracts of bids or offers; and any other relevant documents that would tend to explain the award decision or the adverse action taken with respect to the offeror’s proposal.
(B) In addition to the documents in (A), the contracting officer shall forward all documents requested by the protester to SAF/AQCK or AFLSA/JACN unless otherwise instructed.
(C) Documents requested by the protester but deemed not relevant shall be forwarded to SAF/AQCK or AFLSA/JACN in a tabbed binder separate from the agency report. The contracting officer should consult the cognizant legal office when the relevancy of a document is in question.
(iv) Proprietary or Source Selection Sensitive Information
(A) The contracting officer shall review all documents for proprietary or source selection sensitive information. Any document containing such information must be designated as “protected” in the table of contents. The contracting officer should consult the cognizant legal office if questions arise during this process.
(B) Protected documents include, among other things: any proposal or document submitted by an offeror (including the protester) containing confidential commercial or financial information; interim or final ratings of any offeror (including those contained in summary documents such as a competitive range determinations, source selection decision documents, or proposal assessment reports); past performance information of any offeror (including the protester); and other “source selection information” and “contractor bid and proposal information” as defined in FAR 3.104-3.
(C) The GAO will usually issue a protective order in a protest involving protected information when the protester has an attorney. Although a document designated as protected will not be released directly to the protester, a protester’s attorney admitted to a GAO protective order must be provided a copy of any protected document filed at the GAO.
(D) When an attorney represents the protester, AFLSA/JACN will forward the protester’s copy of the agency report directly to the attorney. The terms of the protective order prohibit the protester’s attorney from forwarding or otherwise disclosing any protected information to the protester.
(E) In the absence of a protective order, the contracting officer may include protected documents in agency reports or subsequent filings by redacting the material considered proprietary or source selection sensitive. In such cases, both the original and redacted versions of such documents are provided to SAF/AQCK (or AFLSA/JACN) and GAO. The contracting officer will consult with SAF/AQCK or AFLSA/JACN before preparing redacted copies of the agency report.
(d) Transmission of Agency Report
(1) The contracting activity shall transmit all copies of the agency report (including one for the protester, one for each intervenor, one for the GAO, and one for either SAF/AQCK or AFLSA/JACN) using overnight delivery so that SAF/AQCK or AFLSA/JACN receives them not later than 20 days after the Air Force is notified of the protest. If GAO uses the express option procedures, SAF/AQCK or AFLSA/JACN must receive the agency report within 10 days from the date the express option is invoked. Only SAF/AQCK or AFLSA/JACN will distribute agency reports to the GAO and other parties.
(2) The GAO may request production of the agency report prior to the deadlines described above. The contracting activity shall work with SAF/AQCK or AFLSA/JACN to ensure that these time frames are met.
(3) When requested by SAF/AQCK or AFLSA/JACN, the contracting activity shall submit an electronic version of the agency report.
(4) The focal point shall work in concert with the contracting activity and review the contracting officer’s statement of facts prior to its submission to SAF/AQCK or AFLSA/JACN. The focal point shall ensure that the contracting officer’s statement of facts is in the proper format and addresses all protest allegations and that the agency report is otherwise complete.
(e) Process after Agency Report is filed
(1) Comments on the Agency Report
(i) The protester and all interested parties may file written comments on the agency report within ten days of receiving the report.
(ii) The protester may request additional documents after the agency report has been filed if the existence or relevance of documents first becomes evident from the agency report. At the request of AFLSA/JACN or SAF/AQCK, the contracting officer must provide additional documents within two days.
(iii) Based on the agency report and comments from the protester, the GAO may require additional submissions from the Air Force. When requested, the contracting officer shall provide responses directly to AFLSA/JACN or SAF/AQCK in order to ensure a timely response to the GAO. The focal point shall be copied on any response provided to AFLSA/JACN or SAF/AQCK. The focal point makes comments or suggestions on supplemental responses directly to AFLSA/JACN or SAF/AQCK.
(2) Supplemental Protests
(i) Based on the information contained in the agency report, the protester may assert supplemental grounds of protest. Unless it can be dismissed, a supplemental protest will require an additional response from the agency. However, this response is usually more narrow than the original agency report and will normally not require as much documentation.
(ii) At the request of AFLSA/JACN or SAF/AQCK, the contracting officer shall provide additional documents and information in support of a response to the supplemental grounds of protest.
(iii) Technically, a supplemental protest triggers a new 100-day clock for the resolution of the protest. As a matter of practice, the GAO will usually try to resolve the entire matter within the original 100 days.
(i) The GAO or any party to a protest may request a hearing in the protest. Hearings are usually held at the GAO in Washington D.C.
(ii) AFLSA/JACN will represent the Air Force at any hearing.
(iii) The contracting activity shall provide the requested witnesses and other support required by AFLSA/JACN. The contracting activity is responsible for funding witness travel and TDY costs.
(iv) At the request of AFLSA/JACN, the contracting activity shall obtain and fund court reporter services to transcribe the hearing.
(v) AFLSA/JACN will submit comments on the hearing to GAO. The contracting officer shall produce additional information as requested by AFLSA/JACN.
(f) Resolving the Protest
(1) GAO Decision. If the protest goes to a written decision, the GAO will usually issue the decision within 100 days of the filing of the original protest. A protest decision involving protected information will be released to the parties under the protective order. A protected decision may be viewed within the government, but may not be released to, or discussed with, non-government personnel. The GAO will issue a public redacted version of the decision at a later date.
(i) Denial or Dismissal. If the GAO denies or dismisses a protest, the protest is closed. The Air Force can proceed with all contractual actions upon notification of denial or dismissal.
(ii) Sustain. If the GAO sustains a protest, the GAO will also recommend corrective action and payment of protest costs. In unusual cases, the GAO will also recommend payment of proposal preparation costs.
(A) Corrective action should be accomplished pursuant to paragraph (g) below. A decision not to comply with a GAO recommendation for corrective action may only be made by SAF/AQC. Any recommendation not to comply with GAO’s corrective action recommendation must be coordinated with the focal point and forwarded to SAF/AQC through SAF/AQCK and AFLSA/JACN within 15 days of the date of the decision.
(B) Potential costs may include attorney fees and in-house costs related to pursuit of the protest. Costs must be paid by the base or procuring activity. A protester must submit a cost claim to the agency within 60 days of a decision or recommendation to award costs. Any cost claim received should be forwarded immediately to AFLSA/JACN. GAO has established a body of law around the payment of cost claims, and AFLSA/JACN will analyze the claim for reimbursable and unallowable expenses. AFLSA/JACN may offer a settlement to the protester, subject to the approval of the contracting officer. If a settlement cannot be reached, the GAO may decide the claim in a written decision. Once a final figure is determined (either through settlement or by the GAO), the contracting officer arranges for payment to the protester.
(2) Alternative Dispute Resolution (ADR). ADR is a flexible way to resolve litigation quickly. In the GAO bid protest process, ADR allows the Air Force to resolve protests weeks and even months before a decision is due. Air Force policy is to use ADR to the maximum extent practicable; however, the feasibility of ADR depends on the facts and circumstances of the protest.
(3) Outcome Prediction. Outcome prediction is a common form of ADR in which the GAO advises the parties of its likely position if the protest were resolved in a written decision. The viability of outcome prediction depends on the nature of the protest (usually a few discrete issues for which there is clearly established precedent) and the GAO attorney assigned to the case. Outcome prediction is not binding on the parties, but Air Force policy is to follow the outcome prediction recommendations.
(4) Settlement. The Air Force may decide to settle a protest. A settlement shall be a formal, written agreement signed by the contracting officer or, if appropriate, by the cognizant Air Force attorney. A settlement shall include the actions the Air Force agrees to such as to take corrective action, pay certain protest costs, produce selected documents, or take other fact-specific actions. In exchange, the protester agrees to withdraw its protest and may waive certain cost entitlements. Settlement of a protest is not a “payoff” to the protester, and is only pursued when doing so is in the best interests of the Air Force considering cost factors and litigation risk. If a settlement is negotiated, the contracting officer shall fax a copy of the signed settlement agreement to SAF/AQCK and AFLSA/JACN.
(5) Withdrawal. The protester may withdraw the protest, either because of corrective action taken by the Air Force or for other reasons. Once the protester gives notice of withdrawal to the GAO, the contracting activity can resume all contractual actions.
(g) Corrective Action
(1) Corrective action may be taken by the Air Force at any time during the protest process or upon the recommendation of the GAO when a protest is sustained.
(2) Corrective action is appropriate when a significant flaw in the procurement process has been discovered or when GAO precedent suggests that the protest will likely be sustained.
(3) Prompt corrective action shall be taken to minimize costs to the Air Force. Corrective action taken prior to submission of the agency report will usually prevent the agency from having to pay protest costs. In contrast, corrective action taken after submission of the agency report will often result in the agency having to pay costs.
(4) Reporting. Within five days of a decision to take corrective action (either voluntary or as recommended by the GAO), the contracting officer shall provide a corrective action plan to SAF/AQCK and AFLSA/JACN. The contracting officer shall notify SAF/AQCK and AFLSA/JACN if there are any significant changes to the corrective action plan, if the corrective action will not be completed within 60 days, and when the corrective action is complete. The focal point should be copied on these messages.
(i) The Air Force must stay award or performance of a contract when notified of a protest within 10 days after the date of contract award or within 5 days after the debriefing date offered to an unsuccessful offeror for any debriefing that is requested and, when requested, is required.
(ii) The Air Force can override a stay in appropriate circumstances when it can show a requisite level of harm resulting from a delay of contract award or performance.
(iii) HCA Override
(A) A request to override a stay of award or performance must be signed by a general officer/member of the senior executive service or, if not available, by the installation commander or deputy. The request shall include the findings required by FAR 33.104(b) or (c) and the information listed in paragraph (h)(4)(i) below. The request shall be forwarded concurrently to the HCA (via Contracts staff) and SAF/AQCK within seven days of the protest notification by SAF/AQCK.
(B) The HCA shall make a decision with respect to authorizing award or continued performance within ten days of the protest notification by SAF/AQCK. If circumstances change after suspension of contract performance, the contracting officer may initiate a request to continue performance.
(2) Overriding Stay of Award (protest filed before award)
(i) A stay of award may only be overridden by “urgent and compelling circumstances that significantly affect interests of the United States.” These circumstances may include delays, work stoppages, or performance degradations that severely impact mission-critical operations.
(ii) All requests shall include facts that establish the urgent and compelling circumstances that significantly affect the interests of the United States. The request shall explain why the incumbent’s contract cannot be extended.
(3) Overriding Stay of Performance (protest filed after award)
(i) A stay of performance may be overridden either by “urgent and compelling circumstances which significantly affect interests of the United States” or when “performance of the contract is in the best interests of the United States.”
(ii) Urgent and compelling circumstances may include delays, work stoppages, or performance degradations that severely impact mission-critical operations. The Air Force must specifically address why performance by the particular awardee is urgent and compelling.
(iii) The Air Force has broad but not unfettered discretion in determining what is in its best interests. Schedule delays, mission degradation, and other disruptions may be considered. Costs of delaying performance under a stay, to the extent they are quantifiable, should be compared to potential termination costs. If the stay is overridden based upon best interests, the GAO will make its recommendation without regard to any cost or disruption from terminating, recompeting, or reawarding the contract (4 CFR 21.8(c)).
(iv) If the contracting officer does not request continued performance authority, contract performance shall cease immediately. If a request is initiated and the HCA does not authorize continued performance within ten days of protest notification, the contracting officer shall suspend contract performance. If circumstances change after suspension of contract performance, the contracting officer may initiate a request to continue performance.
(A) A description of the goods or services requested and the type of contract.
(B) A concise summary of the protest and the Air Force position on the merits.
(C) If applicable, the required award date and rationale.
(D) A statement of the impact on the Air Force if award or performance is delayed 30, 60, or 90 days.
(E) A description of alternative methods for obtaining the required supplies or services (e.g., options, organic capabilities, purchase orders), including a detailed explanation of why such alternatives are not feasible.
(F) An estimate of termination costs if the protest is sustained and the contract terminated 30, 60, or 90 days after award.
(G) The name and telephone number of any point of contact at SAF or HQ USAF who knows the impact of delay in contract award or performance.
(ii) SAF/AQC may request a briefing on technical and contractual aspects of the solicitation when an override is requested.
(iii) The mandatory notice to the GAO shall comply with FAR 33.104(b)(2) or (c)(3) and should include the protester’s name and the B-number assigned to the protest. The notice should be faxed to the GAO at (202) 512-9749. The finding itself should not be sent to the GAO. Copies of the signed notice and finding shall be sent to SAF/AQCK. A copy of the override notice shall be sent to the protester and interested parties, as required by FAR 33.104(d).
Other Than Full and Open Competition Justification and Approval
Preparation Guide and Template
WHEN IS A JUSTIFICATION & APPROVAL REQUIRED?
10 USC 2304(c), as implemented by FAR Part 6, requires the use of full and open competition, unless permitted by one of seven statutory exceptions. If awarding a contract under “other than full and open competition” procedures, some form of written documentation is normally required. Chapter 3 of this guide describes each of the seven statutory authorities for the use of “other than full and open competition” procedures. Depending on the authority used, the specific form of written documentation will vary. Examples include: Justification and Approval (J&A), Determinations and Findings (D&F), or an International Agreement Competitive Restrictions (IACR) document.
Written documentation may also be required if awarding a contract using full and open competition after exclusion of one or more sources. If you are excluding a class or classes of sources in order to conduct a small business set-aside, or an 8(a) acquisition, no written justification or determination is required. If you are excluding one or more sources for other reasons, such as to maintain or develop alternative sources of supplies or services, a D&F must be prepared by the contracting officer (CO) and approved as prescribed in AFFARS 5306.202. Refer to FAR 6.2 and supplements for procedures and guidance if you are conducting a full and open competition after exclusion of sources.
“Full & open competition” is specifically defined in the statute as well as in Chapter 5 of this guide. The existence of “competition” does not necessarily mean full and open competition exists. If only a limited number of sources are able to compete due to competitive barriers that are inherent in the government’s requirement, a J&A may be required. Even when full and open competition does not exist, the CO is required to “solicit offers from as many potential sources as is practicable under the circumstances” (FAR 6.301 (d)). In addition, the existence of an approved J&A does not automatically allow the government to reject proposals from sources not identified in the J&A. The government is obligated to consider any proposal received from a responsible source.
10 USC 2304(c)(7)
Guidance regarding use of this authority is at FAR 6.302-7. Use of this authority is extremely rare. It applies when the Secretary of Defense, Secretaries of the Services or head of any executive agency determines that the use of full and open competition is not in the public interest for the particular acquisition concerned. This authority may only be used when the Secretary of Defense, Secretaries of the Services, or head of any executive agency makes a written determination and findings (reference FAR Part 1.7) and Congress is notified in writing of this determination not less than 30 days prior to award of the contract. The contracting officer must prepare a justification to support the secretarial determination and may not release the solicitation until the determination has been approved.
This authority may only be used when none of the other authorities is appropriate. The determination may not be made on a class basis.
Key Points for the Justification:
Describe the reasons full and open competition is not in the public interest and why no other authority is appropriate for use.
Procedures for J&A changes
The following procedures are applicable to J&A changes that require Assistant Secretary of the Air Force (Acquisition) (ASAF (A)) approval. The CO should submit such changes to SAF/AQCK for processing. These procedures should also be used, as applicable, for J&As not requiring ASAF(A) processing
The chapter includes suggested format and recommended content to aide in preparing a J&A. The cover page, the Coordination and Approval Document, is also referred to as the Justification Review Document. In addition to the officials listed in the samples provided in this chapter, MAJCOM and local procedures may require additional coordination on J&As. For example:
ACC: the Director of Business Operations (DBO) will coordinate on the Justification Review Document. Justifications for other than full and open competition, which require approval above the local level, shall be forwarded to HQ ACC SCO.
AFSOC: the small business specialist, functional chief of the requiring activity, and either the Squadron Commander or the Chief of the Specialized Branch will sign the Justification Review Document. Justifications requiring approval above the local level will be forwarded to HQ AFSOC SCO.
USAFE: the CONS commander or the Chief of the Contracting Office will sign the Justification Review Document. For a JRD greater than $10,000,000, include HQ USAFE SCO on the Justification Review Document.
AFMC: For Science and Technology (S&T) acquisitions, see format in AFMC Acquisition Plan Guide at: https://www.afmc-mil.wpafb.af.mil.HQ-AFMC/PK/pkoprl.htm-list1.
EXAMPLE for J&As from $500,000 to $10,000,000
COORDINATION AND APPROVAL DOCUMENT
(Also known as Justification Review Document)
ESTIMATED CONTRACT COST:
TYPE J&A: (class or individual)
Program Manager or Requiring Official Signature Block
Contracting Officer Signature Block (Name/Title/Phone Number)
Legal Reviewer Signature Block (Name/Title/Phone Number)
Competition Advocate Signature Block
JUSTIFICATION FOR OTHER THAN
FULL AND OPEN COMPETITION
IX. Other Facts
Provide any other facts supporting the use of other than full and open competition, including an explanation of why technical data packages, specifications, engineering descriptions, statements of work, statements of objectives, or purchase descriptions suitable for F&OC have not been developed, are not being developed, are not being used, or are not available. Describe actions taken or planned to remedy this situation, including a discussion of claims of proprietary data by the contractor) and FAR 6.303-2(a)(9)(i) and FAR 6.302-1(b)(2).
Commodity Council Implementation and Operations
3. Commodity Council Roles & Responsibilities
The primary purpose of the commodity council is to develop an AF-wide strategy for the procurement of a specific commodity group and to ensure this strategy is executed properly at the appropriate levels. The formulation of this strategy is accomplished by maintaining a close watch on industry trends, supplier performance, and customer requirements via market-savvy and versatile cross-functional council members. However, for commodity councils involving the acquisition of services greater than $100M, coordination with PEO/CM is required to determine if the acquisition will be placed within their portfolio.
Acquisition Planning Documentation Guidance for “Other Contracting”
TABLE OF CONTENTS
1. Introduction: This guide is written to help you prepare and process Acquisition Planning documentation for “Other Contracting” acquisitions as called for under the Federal Acquisition Regulation (FAR) Part 7 as further supplemented by DFARS 207, and specifically called for under AFFARS 5307.104-92. Specific guidance is provided for preparing either an “Other Contracting” AP, or a Streamlined Acquisition Strategy Summary (SASS). Construction acquisitions should refer to IG5336.9201 for details on Construction Acquisition Planning (AFFARS Library Part 5336). It is recommended that you use this guide when drafting your documentation that outlines a proposed acquisition strategy to ensure that critical elements such as schedule, funding, and contract/business arrangements are adequately addressed. This guide is not intended to serve as a substitute for the regulations; therefore, as each topic is discussed, specific regulatory citations may apply which need to be addressed in the AP.
a. An AP is a document that provides the overall strategy for accomplishing and managing an acquisition. The plan documents the approach to fill the need, optimize resources, and satisfy policy requirements for a proposed acquisition. An AP should provide sufficient information so that someone unfamiliar with the acquisition will understand what is being proposed; however, the plan need not be lengthy. A concise, clear statement of the facts and rationale supporting the technical and business judgments is all that is necessary.
b. Acquisitions under $5M are generally non-complex in nature. Since there are many ways to acquire the required products and services sought, planning is imperative. Notwithstanding, planning for acquisitions with a dollar value above the SAT to <$5M may not require much detail.
c. “Other Contracting” acquisitions with a value of more than $5M require a greater degree of planning driving a need for a more significant document. Accordingly, an “Other Contracting” AP may be prepared using the “Other Contracting” AP Template. The template is a valuable tool because it allows all participants involved in the planning of an acquisition to establish an approach for meeting a government need logically and systematically. The template may be tailored, as necessary, to address the individual acquisition.
d. Although the technical focal point (project lead/program manager) has primary responsibility for preparation of the AP, crafting the strategy and writing the plan should be a team effort with participation by key members such as the contracting officer and functional specialists. Representatives from Finance, Quality, Civil Engineering, Logistics, Safety, Environmental, Legal, and the Small Business Office should be included as part of the planning and documentation process. For those acquisitions over $5M it is also recommended that the local ACE, or SAF/ACE office and headquarters staff be consulted for guidance on complex acquisitions. If a plan proposes other than full and open competition, the competition advocate should also be involved. The process of planning involves significant dialogue with all stakeholders. When conducting the planning process (see AFFARS 5307.104-90), using a complete team of experts will help in vetting all crucial issues and assist in refinement of the plan.
e. The documentation review process facilitates solidification of stakeholder commitment, ensures stakeholder support during plan execution, and the AP preserves a permanent record of decisions made regarding the acquisition strategy, which can be referenced by those who become involved in the future.
2. Actions that generally do not require a written Acquisition Plan:
(a) Delivery Orders issued in strict compliance with the terms of the Basic Contract (except GSA orders > $5M).
(b) Modifications within the scope of the contract.
(c) Replenishment parts except for those replenishment buys that require design, development, verification testing, and approval before start of production.
(d) Basic Research under funding category 6.1.
(e) Recurring Service Contracts valued at less than $100K.
(f) Acquisitions made under Simplified Acquisition procedures.
3. Acquisitions less than $5M that may be documented on a Streamlined Acquisition Strategy Summary or an “Other Contracting” AP:
(a) Acquisitions where there is limited experience with the specified requirement and the risk of completing the acquisition successfully is deemed moderate to high.
(b) Acquisitions where incentives are to be included.
(c) Acquisitions where there is a history of protests or performance problems.
(d) Acquisitions where there is a significantly compressed acquisition timeline.
(e) Acquisitions being conducted for services under OMB Circular A-76.
(f) Acquisitions being conducted as an AFFARS 5315.3 Source Selection to include PPT and LPTA acquisitions.
4. AP Documentation Approval Authorities:
(a) The AP Approval Authority for “Other Contracting” APs is the Senior Contracting Official (SCO) as set forth in AFFARS 5307.104-90(b)(7).
(b) The AP Approval Authority for “Other Contracting” actions less than $5M is the individual one level above the contracting officer as set forth in AFFARS 5307.104-92(d).
5. Timing: As prescribed in FAR 7.104 acquisition planning should take place and the AP should be developed and submitted to the approving official as soon as the requirement is identified and preferably in advance of preparation of the purchase request unless the acquisition is being conducted under the authority of FAR 6.302-2, unusual and compelling urgency. Nevertheless, the AP approval authority is responsible for facilitating release of the Request for Proposal (RFP) either by approving the AP, or by providing clear separate direction as to release of the RFP, or by clearing the action for the SSA to proceed with release where the SSA is the release authority.
6. “Other Contracting” Acquisition Plan and Streamlined Acquisition Strategy Summary Templates:
For acquisitions greater than $5M but less than the value requiring AFPEO/CM approval, the “Other Contracting” AP Template below may be utilized to document acquisition planning. For acquisitions from the SAT to <$5M the SASS Checklist below may be utilized to document acquisition planning. Some degree of documentation related to acquisition planning for the above categories is required unless specifically waived by the designated AP approval authority.
“OTHER CONTRACTING” ACQUISITION PLAN
FOR OFFICIAL USE ONLY
Estimated Dollar Value: (including options)
I. Acquisition Background
A. Description of Requirement/Statement of Need: Summarize supplies, construction, or services to be provided.
B. Conditions: Describe any known cost, schedule, environmental, capability or performance constraints.
C. Background and Contracting History: Describe contracting history of exact or similar requirement, including previous contract type and dollar value.
E. Delivery or Performance Period: Describe delivery or performance period requirements. (Construction: If incorporating optional requirements, the plan must describe the performance period for each optional CLIN to include consideration of mobilization and/or demobilization activities, progressive flow of construction activities, and anticipated receipt of funding. Normally, the option to purchase additional requirements will not extend past 90 calendar days from date of award.)
F. Risks: Identify any technical, cost, schedule or performance risks that may affect either the Government or contractor. Identify what efforts are planned to mitigate these risks.
II. Plan of Action
A. Market Research Results/Interested Sources: Discuss results of market research, for example: determination of whether bundling is necessary or justified (FAR 7.107), of commerciality and industry -specific commercial terms/conditions identified during market research. Market Research documentation may be attached to the acquisition plan to fulfill the requirements of this paragraph.
B. Acquisition Approach: Address the following:
(1) Solicitation method to be utilized (Simplified RFQ, RFP, Combined Synopsis/Solicitation, etc).
(2) Performance-based services acquisition principles as required by AFI 63–124.
(3) Basis of award (Lowest Price Technically Acceptable (LPTA), Performance Price Tradeoff (PPT) with or without evaluation factors or formal source selection and identify evaluation factors to be included in a PPT or formal source selection and the importance of those factors).
(4) Contract type.
(5) Inclusion of options -- including optional quantities or option to purchase additional requirements.
(6) Proposed price schedule and basis for evaluation of price. (Include the Note that when evaluating CLINs for additional quantities or requirements in construction, evaluation will not always be based on the sum of all CLINs and instead must follow an evaluation structure patterned after DFARS 252.236-7007).
(7) Whether or not foreign contractors will be permitted to participate at the prime contractor level.
C. Competition: Discuss extent of competition in past solicitations, consideration of small business, HUBZone small business, small disadvantaged business, service-disabled veteran-owned small business, and woman owned business, how full and open competition will be obtained or J&A authority and rationale for it if full and open competition is not contemplated. If using a non -traditional pricing arrangement, i.e., using coefficients in other than SABER, fully explain the rationale for the selection of the strategy and any anticipated impact on competition.
D. Contracting Considerations or Incentives: Provide a draft of any special clauses/ provisions/deviations required, provide a draft of any incentives to be used and discuss any other contracting considerations.
E. Government-Furnished Property/Information: Summarize extent and availability.
F. Surveillance: Describe the surveillance method that will be used to ensure receipt of acceptable contract performance for service contracts.
G. Other Considerations: Describe decentralized ordering procedures to include maintenance of a call register, security considerations, environmental considerations, safety, data rights, advisory and assistance services, conflict of interest, and any other items not addressed elsewhere in the plan.
H. Milestones: Include the following: (add additional milestones that may apply and/or exclude those that do not apply to this particular acquisition).
1. Acquisition plan approval
2. Approval of J&A for other than full and open competition (if necessary)
3. Issuance of synopsis
4. Request Business Clearance (local review, JA review, HQ review/approval)
5. Completion of solicitation review
6. Issue solicitation
7. Conduct pre-proposal conference
8. Receipt of proposals
9. Request audit and field pricing support (if necessary)
10. Complete discussions if competitive acquisition
11. Prepare PPNM if non -competitive acquisition
12. Request Contract Clearance (local review, JA review, HQ review/approval)
13. Receive Contract Clearance
14. Request Final Proposal Revisions if competitive acquisition
15. Begin negotiations if non -competitive acquisition
16. Complete negotiations if non -competitive acquisition
17. Complete FPNM if non -competitive acquisition
18. Debriefing prepared
19. Contract award
20. Conduct debriefings
21. Hold pre-performance conference
22. Contract start date
23. Contract completion date
Contracting Officer (Date) Small Business Specialist (Date)
Chief of Contracting Office (Date) Coord: Staff Judge Advocate (Date)
Chief of Requiring Activity (Date) Program Manager (Date)
Streamlined Acquisition Strategy Summary(SASS)
FOR OFFICIAL USE ONLY
Requiring Activity: Voice (DSN):
☐Construction ☐Service ☐Supply
(Include ALL Options)
I. Brief Description of Requirement (Including delivery schedule, any problems/risk)
II. Proposed Acquisition Approach
a. Extent of Competition:
☐ NETCENTS/AFWAY ☐ Limited Sources
b. Small Business:
FOR OFFICIAL USE ONLY
FOR OFFICIAL USE ONLY
c. Procedures: (Check all that apply) d. Contracting Method
☐ FAR 8 (GSA Competitive) ☐ IFB
☐ FAR 12 Commercial Items ☐ Competitive RFP
☐ FAR 13 Simplified Acquisition ☐ Sole Source RFP
☐ FAR 14 Sealed Bidding ☐ Other (Fill-in)
☐ FAR 15 Negotiation
☐ FAR 36 A&E and Design Build
☐ FAR 37 Personal Services Healthcare
e. Basis of Award:
f. Contract Type (Check all that apply):
☐ Incentive Fee
☐ Economic Price Adjustment
☐ Award Fee
☐ Time and Material/Labor Hour
☐ Letter Contract
☐ Indefinite Delivery Contract (IDC)
(Select from types below)
FOR OFFICIAL USE ONLY
FOR OFFICIAL USE ONLY
In lieu of actual signatures, and prior to the availability of digital signatures, please perform local review and coordination of this completed document via e-mail.
Attach the e-mail coordination / approval from all required individuals when submitting the final SASS.
** The following section is to be completed by reviewer/approving official**
** The following section is to be completed by the Small Business Specialist **
** The following section is to be completed by the Services Designated Official (SDO) for service acquisitions **
In accordance with Command Management and Oversight of Acquisition of Services Process (MOASP), the undersigned, acting in the capacity of SDO for this acquisition, determines that the Performance Work Statement is, to the maximum extent possible, performance based (considering the security requirements inherent in this acquisition), reflects outcome-based objectives in the Service Delivery Summary (SDS), and contains metrics appropriate for the requirement that will ensure timely and accurate assessment of contractor performance. (SDO Certification should be tailored for each acquisition.)
☐ SASS SDO coordination __________________________________
FOR OFFICIAL USE ONLY
Price Negotiation Memorandum Checklist
PRICE NEGOTIATION MEMORANDUM CHECKLIST
PNM CONTENTS CHECKLIST
a. Contractor name, division or group and location
b. Contract or RFP Number (include modification number)
c. Item or service acquired
d. Case number
2. INTRODUCTORY SUMMARY
a. Settlement date
b. Type of contractual action (new contract, SA, etc.)
c. Tabular summary of cost, COM, profit/fee and price:
(1) Proposed and objective
(3) Separate summaries for options, etc.
(4) Fee or profit rate for each position
(5) Award fee pool for each position
(6) Share ratios for each position
(7) Min/Max fee for each position
(8) Ceiling price and percentage for each position
(9) Type of contract for each position
a. Item or service identification:
(1) Types and quantities
(2) Previous buys of the same or similar items
(a) When they were bought
(c) Contract type
(d) Prior unit or total prices (target/finals if applicable and available: document
separately recurring and non-recurring costs)
(e) Current unit or CLIN prices (may be attached) with name of item, NSN, part number,
quantities, etc., as applicable (document separately recurring/ non-recurring costs)
(f) Summary explanation of significant differences between the instant buy and most
recent historical price(s)
b. Explain method used to establish line item or unit prices
c. Clearance authority
(1) Approval authority
(2) Approval date
(3) Limitations specified by the approving authority
(4) Sessions, dates, and participants
d. Fact-finding/negotiation dates, places, names, titles, and office symbols for the
government and the Contractor
e. Principal government/Contractor negotiator identities
4. ACQUISITION SITUATION
a. Acquisition background (contract type, IPT pricing, etc.)
b. Period of performance and/or delivery schedule (address resolution of differences between
required, proposed and negotiated)
c. Outside influences/unusual time constraints
d. Government furnished facilities, equipment or base support unique to this acquisition
e. Unique features: e.g. should cost, design-to-cost, life cycle cost, special payment procedures,
business modernization certification or special provisions (clauses: savings, EPA, performance
5. NEGOTIATION SUMMARY
a. Discussion/explanation of price analysis performed by the contractor and/or the government's
price analysis in the following areas or a statement why it was not performed
(1) Price element summary for proposed, objective, and considered negotiated amount
(2) Basis or estimating technique used to determine price reasonableness
(atch exemption/waiver if in lieu of cost and pricing data)
(3) Identify submission of other than cost or pricing data necessary to determine a reasonable
price. Include discussion on rationale and required updates (attach sales data, catalogues,
(4) Identify subcontractors required to provide cost and pricing data where the prime's
requirement has been waived
(5) Requirement changes and how the price analysis and objective were adjusted
(6) Significant differences between the objective and negotiated amounts
(7) Use of advisory information/report to establish the objective, including significant
differences between them, the objective, and the final negotiated agreement
b. Identify proposal of record used to establish objective
c. When cost and pricing data is obtained, a statement that full reliance was placed on contractor
provided data except where specifically identified (including agreed to cut-off dates)
d. Major cost element summary with sub-paragraph index for proposed, objective and considered
negotiated amounts (including direct and indirect costs for labor, materials, etc.)
e. Discussions/explanations of cost analysis performed for each major cost element for contractor
proposed, government objective and negotiated positions in the following areas
(1) Summary breakout of the components which make up the major cost element amount
(a) Labor hours by rate category
(b) Identify and discuss indirect rate
(c) Materials and other costs by category
(d) Subcontractor cost or pricing data
1. Requirement, availability, adequacy, reliance, of subcontractor cost/pricing data
2. Sole source or competitive
3. Extent and adequacy of the prime's review
4. Why certified cost or pricing data not obtained when required (atch -
5. Why certified cost or pricing data obtained when not required
(e) Basis or estimating method used
(f) Explanation of contractor data not relied upon and reason for using other than
contractor's data, identify data used to develop the government's position (see 5.c)
(g) Rationale, sources, and currency of the data used to establish the objective (include
modification change determined to be non-commercial where originally commercial)
(h) Requirement changes and how costs were adjusted
(i) Significant differences between the objective and negotiated amounts
(j) Use of advisory reports/IPT pricing in establishing the objective, including significant
differences between them, the objective, and the final negotiated agreement
(k) Actual costs to date, % of completion, trends and, if significant, the contractor's
estimate to complete
(2) With incentive arrangements, describe how the share ratio(s) and ceiling price(s) were
(3) When establishing a final price of an incentive contract
(a) Compare contractor stated costs incurred and acceptable actuals reflected in the
objective and explain differences. Show the calculations of the incentive
(b) Identify significant differences between objective and negotiated position
(c) Identify supplemental agreements that adjusted targets and state respective
(d) Identify any firm fixed price and cost reimbursement amounts not subject to the
incentive settlement, but which were in the total settlement amount
(4) Profit. Explain how the objective was developed
(a) If WGM was used, state assigned weights and provide rationale when weights are
below or above normal. (DD 1547 Atch to the PNM)
(b) If WGM not used, explain why not and how profit objective was developed
a. List government advisory reports (audit, pricing, technical, should cost, etc.)
(1) Explain use of informal field assistance in lieu of formal report(s)
(2) Explain basis for any field reports required but not obtained
b. Provide status and explanation/disposition of the deficiencies on the following contractor
systems that impact the instant negotiations
(1) Accounting system (include adequacy of disclosure statement and compliance with cost
(2) Purchasing system
(3) Compensation system
(4) Estimating system
(5) Any other systems, as appropriate
c. List/identify contractor provided cost/price data. Identify certificate of current cost/pricing
data, if provided
d. Summarize why the negotiated price is fair and reasonable
(1) Address the 25% limitation on price increases
e. Include signatures of the Contracting Officer and the author of the PNM
a. DD 1547 - Weighted Guidelines (unsigned without a report number for preliminary PNM)
b. DD 1861 - Facilities Capital Cost of Money (for the objective only)
c. Cost/profit charts (if incentive type contract)
d. Other attachments identified in the PNM
Associate Contractor Agreements
“Associate Contractor Agreements” (ACAs) are agreements between contractors working on government contract projects that specify requirements for them to share information, data, technical knowledge, expertise, or resources.
(a) Prime contractor to subcontractor relationships do not constitute ACAs, and are not subject to this section’s requirements.
(b) The contracting officer may require ACAs when contractors working on separate government contracts must cooperate, share resources or otherwise jointly participate in working on contracts or projects. Tailor each Associate Contractor Agreement (ACA) to the requirements of the individual contracting situation.
Suggested contract language for SOW:
ASSOCIATE CONTRACTOR AGREEMENTS
(a) The Contractor shall enter into Associate Contractor Agreements (ACA) for any portion of the contract requiring joint participation in the accomplishment of the Government’s requirement. The agreements shall include the basis for sharing information, data, technical knowledge, expertise, and/or resources essential to the integration of the (insert name of the program or project), which shall ensure the greatest degree of cooperation for the development of the program to meet the terms of the contract. Associate contractors are listed in (h) below.
(b) ACAs shall include the following general information:
(1) Identify the associate contractors and their relationships.
(2) Identify the program involved and the relevant Government contracts of the associate contractors.
(3) Describe the associate contractor interfaces by general subject matter.
(4) Specify the categories of information to be exchanged or support to be provided.
(5) Include the expiration date (or event) of the ACA.
(6) Identify potential conflicts between relevant Government contracts and the ACA; include agreements on protection of proprietary data and restrictions on employees.
(c) A copy of such agreement shall be provided to the Contracting Officer for review before execution of the document by the cooperating contractors.
(d) The Contractor is not relieved of any contract requirements or entitled to any adjustments to the contract terms because of a failure to resolve a disagreement with an associate contractor.
(e) Liability for the improper disclosure of any proprietary data contained in or referenced by any agreement shall rest with the parties to the agreement, and not the Government.
(f) All costs associated with the agreements are included in the negotiated cost of this contract. Agreements may be amended as required by the Government during the performance of this contract.
(g) The following contractors are associate contractors with whom agreements are required:
IG5336.9201 Changes: Note that this IG has already been posted to the Air Force Contracting Website. Due to its size, it will not be reproduced in this document.
NOTIFICATION OF COMPLIANCE WITH CONTRACT INSURANCE REQUIREMENTS
The undersigned Contractor hereby acknowledges that he/she has read and understands the insurance requirements specified in this contract and hereby provides notification (1) that such insurance shall be maintained in at least the amounts and types as stated in FAR 28.307-2 and during any modifications and/or time extensions granted thereto; (2) that the required insurance policies shall contain an endorsement to the effect that any cancellation of material changes adversely affecting the Government's interest shall not be effective for such period as the laws of the State in which this contract is to be performed prescribe, or until thirty (30) calendar days after the insurer or contractor gives written notice to the Contracting Officer, whichever period is longer; (3) that _____________ (state) Workers' Compensation Insurance, or letter of reciprocal agreement with another state, shall be maintained on this contract for and during the entire performance period and for any modifications and/or time extensions granted thereto; and (4) that a copy of all subcontractors' proofs of required insurance shall be maintained and shall be made available to the Contracting Officer upon request. This agreement shall be a part of subject contract and shall be legally binding and enforceable at law.
(Typed Name and Title) (Date)
Ratification Action Template
PART I. TO BE COMPLETED BY INDIVIDUAL WHO COMMITTED THE UNAUTHORIZED ACT
OR THEIR RESPONSIBLE SUPERVISOR
STATEMENT OF FACTS AND CIRCUMSTANCES
(Attach any relevant supporting documentation.)
TYPED OR PRINTED NAME, GRADE, DUTY TITLE
The ☐ Supplies ☐ Services identified were received on ____________ (Date) (YYYYMMDD) Provide all relevant documentation such as receiving reports as attachments to this document.
PART II. TO BE COMPLETED BY RECEIVING ACTIVITY
TYPED OR PRINTED NAME, GRADE AND DUTY TITLE
PART III. TO BE COMPLETED BY ACCOUNTING AND FINANCE
Disciplinary action ☐ was ☐ was not taken.
Provide explanation of disciplinary action taken or the reason why none was taken.
Provide explanation of actions taken to prevent recurrence of unauthorized commitments.
PART IV. TO BE COPLETED BY INDIVIDUAL’S IMMEDIATE SUPERVISOR
I certify that funds ☐ are ☐ are not available if action is ratified.
I certify that funds ☐ were ☐ were not available at the time the unauthorized commitment was made.
TYPED OR PRINTED NAME, GRADE
AND DUTY TITLE OF
ACCOUNTING AND FINANCE OFFICER
TYPED OR PRINTED NAME, GRADE DUTY TITLE
PART V. TO BE COMPLETED BY CONTRACTING OFFICER
My Contracting Officer’s Statement of Facts is attached to support the above conclusions.
PART VII. TO BE COMPLETED BY RATIFICATION APPROVING AUTHORITY
Pursuant to my authority under AFFARS 5301.602-3(b)(3) and my delegation dated ____________, this unauthorized commitment ☐ is ☐ is not ratified.
TYPED OR PRINTED NAME AND GRADE
OF RATIFICATION OFFICIAL
PART VI. TO BE COMPLETED BY LEGAL OFFICER
TYPED OR PRINTED NAME AND GRADE
OF LEGAL OFFICER
PRIVACY ACT STATEMENT: Title 10 USC 8013; Title 10 USC, Subtitle A, Chapter 87; FAR 1.608; and EO 9397, Numbering System for Federal Accounts Relating to Individual Persons.
PRINCIPLE PURPOSE: Submission of resumes of experience, references, and training records necessary to support the appointment of contracting officers.
TYPE DESIGNATION REQUESTED
_ LIMITED (Specify Amount) $
_ OTHER (Specify)
IDENTIFICATION AND PERSONAL DATA
NAME (Last, First, Middle Initial)
SSN (Last 4)
CURRENT JOB TITLE
LENGTH OF SERVICE
LENGTH OF RETAINABILITY
LENGTH OF GOVERNMENT
PREVIOUSLY HELD WARRANTS (Last three only - if none, so indicate)
TYPE (PCO, ACO, Termination, etc.)
RESUME OF EXPERIENCE (Start with present position and work back not more than 10 years)
OFFICE AND LOCATION
DATES (From - To)
Contracting Officer Appointment/Termination Request Template, Nov 05 (SAF/AQCP)
FORMAL TRAINING (Other than APDP Required Training)
COURSE NUMBER / TITLE
COURSE NUMBER / TITLE
CIVILIAN EDUCATION AND EXPERIENCE
COLLEGE OR UNIVERSITY
IF YES, GIVE YEAR
24 BUSINESS HOURS _ YES _ NO
NAME OF SCHOOL
SUBJECT MAJORED IN
TYPED NAME OF APPLICANT
I certify that this individual requires a contracting officer appointment in the performance of their duties. The qualifications contained herein have been verified against the applicant’s personnel file and the applicant is considered qualified.
TYPED NAME, RANK, TITLE OF REQUESTING OFFICIAL
SIGNATURE OF APPROVING OFFICIAL
TERMINATION OF APPOINTMENT
SIGNATURE OF TERMINATION OFFICIAL
Contracting Officer Appointment/Termination Request Template, Nov 05 (SAF/AQCP)