AFAC

Air Force Acquisition Circular (AFAC) 2008-0605
June 5, 2008

FOR ADDITIONAL INFORMATION CONTACT:
SAF/AQCP, 1060 Air Force Pentagon, Washington, DC 20330-1060 (703) 588-7071

SUMMARY OF CHANGES

I

5301.601(ii): Clarifies general contracting authority.

II

5301.9001 and MP5301.9001: Deletes reporting requirement for MAJCOM/DRU review of contracts below the clearance thresholds.

III

5302.101: Adds two AFMC field activities to those listed under definition for “Center Commander.”

IV

5303.104-4: Revises use of Source Selection Non-Disclosure Agreement from “fiscal year” to “annual” basis.

V

5315.305: Clarifies proposal evaluation procedures.

VI

5315.403-1 and MP5315.403-1: Adds additional TINA reporting requirements.

VII

5317.191: Eliminates congressional notification requirement (Section 511 of the Energy Independence and Security Act of 2007).

VIII

5332.2 and MP5332: Adds commercial item purchase financing to mandatory procedure

IX

5337.101, 5337.170-3, 5337.5, and 5337.6: Clarifies PBSA objectives and deletes MOASP language.

X

MP5301.602-3: Deletes an administrative requirement.

XI

MP5330.201-5: Clarifies CAS waiver reporting procedures.

XII

IG5304.7202-1: Provides administrative changes.

Note: ***** below indicates that text is omitted for purposes of brevity.

I

5301.601(ii): Clarifies general contracting authority.


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5301.601 General.

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(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 official with overall responsibility for contracting in the organization, unless specifically stated otherwise elsewhere in the AFFARS.

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(ii) General Contracting Authority.

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(B) The authority to enter into, approve, modify, and terminate contracts is hereby redelegated to MAJCOM and DRU commanders. This authority may be redelegated with or without the authority to make successive redelegations and under such terms, conditions, and limitations as may be deemed appropriate. This delegation is a general one, and all other existing or future authority, to the extent that it would, expressly or by reasonable implication, limit the scope of this delegation or impose conditions or restrictions upon the exercise of the authority delegated, will be controlling over it.

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II

5301.9001 and MP5301.9001: Deletes reporting requirement for MAJCOM/DRU review of contracts below the clearance thresholds.

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5301.9001 Policy, thresholds, and approvals.

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(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.

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(2) For Operational Contracting (excluding AFRC)

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(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.
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Mandatory Procedure

MP5301.9001
Agency Procedures

MAJCOM/DRU Review of Contracts Below the Clearance Thresholds

June 2006

MP5301.9001 Agency Procedures

Deleted.

III

5302.101: Adds two AFMC field activities to those listed under definition for “Center Commander.”

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5302.101 Definitions.

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"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, Air Force Global Logistics Support Center, Nuclear Weapons 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).

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IV

5303.104-4: Revises use of Source Selection Non-Disclosure Agreement from “fiscal year” to “annual” basis.

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5303.104-4 Disclosure, protection, and marking of contractor bid or proposal information and source selection information.

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 Non-Disclosure Agreement (See MP5315.3, Attachment 1). The Source Selection Non-Disclosure Agreement may be used on an annual 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.

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V

5315.305: Clarifies proposal evaluation procedures.

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5315.305 Proposal evaluation.

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(a) (i) Offerors are required to meet all solicitation requirements, such as terms and conditions, representations and certifications, and technical requirements, in addition to those identified as evaluation factors or subfactors. Failure to meet a requirement may result in an offer being ineligible for award. Offerors must clearly identify any exception to the solicitation terms and conditions and provide complete accompanying rationale. The instructions to offerors and evaluation criteria (Sections L and M or equivalent provisions of the solicitation) shall inform offerors of this condition for award.

(ii) Except for cost studies under OMB Circular A-76, source selection teams using the Lowest Price Technically Acceptable (LPTA) or Performance Price Tradeoff (PPT) process may select an evaluation approach where all proposals are evaluated against the most important non-price factor first, and only those proposals meeting the requirements of that factor proceed to the next phase of the evaluation. Information Guidance at 5315.101-1 provides examples of various evaluation approaches. Ensure the approach selected is clearly communicated in the solicitation and followed throughout the evaluation process.

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VI

5315.403-1 and MP5315.403-1: Adds additional TINA reporting requirements.

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5315.403-1 Prohibition on obtaining cost or pricing data (10 U.S.C. 2306a and 41 U.S.C. 254b).
(c) Standards for exceptions for cost or pricing data requirements.
(3) Commercial Items.
(B) Using the Mandatory Procedures detailed in MP5315.403-1(c)(3), MAJCOM and DRU SCOs shall submit an annual report for contracts, subcontracts, or modifications expected to have a total value of $15,000,000 or more identifying cost or pricing data exceptions for commercial item procurements (FAR 15.403-1(b)(3)).
(4) Waivers.
(A) Follow the Mandatory Procedures at MP5315.403-1(c)(4) to submit waivers for Certified Cost or Pricing Data. Before granting a waiver, HCAs must determine that (1) the property or services cannot be reasonably obtained without the waiver; (2) the price can be determined reasonable without submission of cost or pricing data; and (3) there are demonstrated benefits to granting the waiver.
(B) Using the Mandatory Procedures detailed in MP5315.403-1(c)(4), MAJCOM and DRU SCOs shall submit an annual report identifying cost or pricing data waivers (FAR 15.403-1(b)(4)) for contracts, subcontracts, or modifications expected to have a total value of $15,000,000 or more.
(5) Additional Reporting Requirements
Using Mandatory Procedures detailed in MP5315.403-1(c)(5), Contracting Officers shall notify SAF/AQCP immediately of anticipated cost or pricing data waivers. Contracting Officers shall also submit copies of all signed cost or pricing data waivers to SAF/AQCP within 30 days of HCA signature.

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Mandatory Procedure

MP5315.403-1
Prohibition on Obtaining Cost or Pricing Data

June 2008

(c) Standards for exceptions for cost or pricing data requirements.
(3) Commercial Items
(B) Annual Reporting Requirements. In order to fulfill the requirement for DoD to submit an annual report to Congress, MAJCOM/DRU Senior Contracting Officials (SCO) shall annually identify commercial item exceptions to the requirements of the Truth In Negotiations Act (TINA) for any contract, subcontract, or modification from the previous fiscal year expected to have a value of $15,000,000 or more. For all commercial item exceptions meeting that threshold, MAJCOM/DRU SCOs shall submit the information as required in paragraph (i) below no later than 15 October each year. If no commercial item exceptions meeting the threshold were granted during the previous fiscal year, submit a negative report no later than 15 October each year. Submit the report to HQ AFMC/PKPB, the designated Air Force focal point for consolidation of the reports. HQ AFMC/PKPB shall consolidate all of the MAJCOM and DRU reports and submit a final report to SAF/AQCP no later than 8 November each year. SAF/AQCP shall submit the report to the Director, Defense Procurement and Acquisition Policy (DPAP), ATTN: DPAP/CPF.

(4) Waivers
(A) Requests for waiver of certified cost or pricing data shall include a clear description of how the three criteria for granting a waiver of cost or pricing data under the exceptional circumstances exception (see DFARS 215.403-1(c)(4)(A)) will be met. When the waiver is for a subcontractor who has refused to provide cost or pricing data to a prime contractor, the information required shall cover both the prime contract and subcontract. The waiver request shall also include the following information:

(2) A concise description of supplies or services being purchased;
(3) A description of any outside influences or time pressures;
(4) Complete company name and location;

(7) A summary statement of the approval action being requested.
(B) Annual Reporting Requirements. In order to fulfill the requirement for DoD to submit an annual report to Congress, MAJCOM/DRU Senior Contracting Officials (SCO) shall annually identify and report TINA waivers for any contract, subcontract, or modification from the previous fiscal year expected to have a value of $15,000,000 or more. For all TINA waivers meeting that threshold, MAJCOM/DRU SCOs shall submit the information as required in paragraph (i) below no later than 15 October each year. If no waivers meeting the threshold were granted during the previous fiscal year, submit a negative report no later than 15 October each year. Submit the report to HQ AFMC/PKPB, the designated Air Force focal point for consolidation of the reports. HQ AFMC/PKPB shall consolidate all of the MAJCOM and DRU reports and submit a final report to SAF/AQCP no later than 8 November each year. SAF/AQCP shall submit the report to the Director, Defense Procurement and Acquisition Policy (DPAP), ATTN: DPAP/CPF.

(5) Additional Reporting Requirements
(A) Future Contractual Actions. Contracting Officers shall notify SAF/AQCP of any future contractual actions where a TINA waiver is being planned. This notification may be made via email at SAFAQCP.Workflow@pentagon.af.mil. The notification must be accomplished as soon as the Contracting Officer determines that it is appropriate to pursue a TINA waiver. This requirement applies to all actions at or above the cost or pricing data threshold identified in FAR 15.403-4(a)(1). The supporting documentation accompanying the notification of the planned TINA waiver shall include the following information:

(2) CLIN(s).

(3) Contracting Activity (with contact information).

(4) Total estimated dollar amount of waiver.

(B) Signed TINA Waivers. Contracting Officers shall submit a copy of all signed TINA waivers to SAF/AQCP within 30 days of signature by the Head of the Contracting Activity. Copies of the signed waivers may be submitted via email at SAFAQCP.Workflow@pentagon.af.mil. Supporting documentation explaining how the action met the three criteria for a TINA waiver must accompany the signed document. This requirement applies to all actions at or above the cost or pricing data threshold identified in FAR 15.403-4(a)(1). SAF/AQCP will provide a copy of all signed TINA waivers to AFMC/PKPB regardless of dollar threshold.

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VII

5317.191: Eliminates congressional notification requirement (Section 511 of the Energy Independence and Security Act of 2007).

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5317.191 Congressional notification.

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(b) Deleted.

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VIII

5332.2 and MP5332: Adds commercial item purchase financing to mandatory procedure

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SUBPART 5332.2 – COMMERCIAL ITEM PURCHASE FINANCING

5332.200 Scope of Subpart.

See Mandatory Procedures at MP5332.2 for processing commercial interim payment request and commercial advance payment requests.

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Mandatory Procedures

MP5332

Contract Financing

June 2008

MP5332 Introduction

This document provides mandatory procedures for certain contract financing actions.

MP5332.1 Non-Commercial Item Purchase Financing

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(2) If the MAJCOM Contracting Staff determines an approval is required by higher authority, it shall submit a memorandum outlining the pertinent facts together with a recommendation on the action to be taken through SAF/AQCK to SAF/FMPS no later than 30 days before the needed effective date of the proposed financing arrangement.

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MP5332.2 Commercial Item Purchase Financing

(1) The contracting officer shall submit all commercial interim payment requests and commercial advance payment requests to the MAJCOM Director of Contracting. These requests, in turn, shall be forwarded through SAF/AQCK to SAF/FMPS for review and approval.

MP5332.3 Loan Guarantees For Defense Production

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(3) When applying for a loan guarantee, the contractor must apply to the cognizant Federal Reserve Bank to determine if it is eligible to receive a loan guarantee. Although the burden is on the contractor to apply for a certificate of eligibility, it may also be requested by the Assistant for Accounting and Banking, Office of the Assistant Secretary of the Air Force (Financial Management and Comptroller), SAF/FMPS.
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MP5332.4 Advance Payments

(1) Except for educational and non-profit organizations, the contracting officer shall submit each advance payment request involving only a single contract to the MAJCOM Director of Contracting. This request, in turn, shall be forwarded through SAF/AQCK to SAF/FMPS for review and approval.

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(a) AFOSR/PK is the office responsible for the administration of contracts and grants issued by the Air Force Office of Scientific Research, which sponsors and supports basic research by educational and research institutions. Thus, all requests for advance payments requested by educational and research institutions are processed by AFOSR/PK.

(b) If possible, a single disbursing office shall disburse funds for all Air Force contracts in an advance payment pool.

(c) New contracts awarded to educational and research institutions having an advance payment pool agreement shall also be included in the existing pool agreement.

(d) Educational and research institutions desiring an advance payment pool agreement shall submit their request to the contracting officer. The documentation supplied by the institution to justify an advance payment pool agreement should include the following:

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(e) The contracting officer shall review the institution’s request and supporting documentation and forward the request to AFOSR/PK. AFOSR/PK reviews the justification for completeness and compliance with the FAR. When satisfied that the requirements have been met, AFOSR/PK forwards the request and other related documentation through SAF/AQCK to SAF/FMPS. The following is a list of actions that may be performed by the Contract Administration Office or the Air Force Accounting and Finance Office:

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(f) The Air Force accounting and finance office is responsible for the disbursing functions of the advance payment pool agreement. Specific duties include --

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(g) SAF/FMPS will evaluate the request to determine if the advance payment pool agreement is justified. Assistance may be solicited from other sources such as contracting officers, auditors, disbursing officers, and, if necessary, field visits to the institution. When approved, SAF/FMPS findings, determinations, and authorizations for advance payments and the advance payment pool agreement are forwarded to AFOSR/PK. Upon receipt of the signed D&F, AFOSR/PK takes necessary actions to award the advance payment pool agreement and incorporate it into affected contracts. AFOSR/PK will ensure that the clause at DFARS 252.232-7000, Advance Payment Pool, is included in each contract covered by the agreement.

(h) The contracting officer shall amend affected contracts, as appropriate, in order to incorporate the advance payment pool agreement.

MP5332.501-2 Unusual Progress Payments

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(3) The MAJCOM Chief of Contracting recommends to SAF/AQC whether the request for unusual progress payments should be approved. All requests for unusual progress payments, whether recommended for approval or disapproval, shall be promptly forwarded through SAF/AQCK to SAF/FMPS with all pertinent data supporting the recommended action.

(4) AFMC requests and recommendations shall be submitted through SAF/AQCK to SAF/FMPS in accordance with AFMC procedures.

(5) When estimated increases totaling $20 million or more have been made under a contract, the contracting officer shall notify SAF/FMPS.

(6) In obtaining approval by SAF/FMPS of unusual progress payments, follow the procedures for obtaining approval of advance payment pool for educational and research institutions.

(7) When seeking approval to provide progress payments to contractors of the type described in FAR 32.502-2 (c), the contracting officer shall submit the necessary information directly to SAF/FMPS.

MP5332.6 Contract Debts

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(5) When a request for deferment of a contract debt is received from a contractor, the recipient office, except for those under AFMC, shall forward the request for deferment to the Chief of Contracting at the MAJCOM. The MAJCOM Contracting Staff shall submit, on a priority basis, an evaluation of the contractor’s request with the necessary reporting information and recommendation through SAF/AQCK to SAF/FMPS. AFMC actions shall be submitted directly to SAF/FMPS in accordance with AFMC procedures. (Failure to have all of the required documentation that supports the deferment package should not delay the processing of the request to SAF/FMPS.)

(6) For payments made as a consequence of a contract debt arising from a default termination, advise contractors to make payments by check made payable to the “Treasury of the United States” and mailed to the Defense Finance and Accounting Service, DFAS-BKRD/CC, P.O. Box 955515, St. Louis, MO 63195-5515.

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IX

5337.101, 5337.170-3, 5337.5, and 5337.6: Clarifies PBSA objectives and deletes MOASP language.

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5337.101 Definitions.

“Services Designated Official (SDO)” means the individual authorized IAW the FY02 National Defense Authorization Act (NDAA), Section 801 and FY06 NDAA, Section 812 to exercise responsibility for the management and oversight of the acquisition of services. These responsibilities include ensuring services acquisitions are at least 50 percent or more performance-based; approving, in advance, any acquisition that is not performance-based; and approving the acquisition of services procured through the use of a contract or task order being awarded by an agency other than DoD.

5337.104 Personal Services Contracts.

(b)(i) For “Other Contracting,” the installation commander is authorized to approve determination and findings at DFARS 237.104(b)(i). For PEO programs and acquisitions, the PEO is authorized to approve this determination and finding.

5337.170-2 Approval Requirements

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(b) Not all service acquisitions will lend themselves to PBSA objectives. The Services Designated Official (5337.503) is responsible for approving any services acquisition that is not performance-based. This authority includes acquisitions to be purchased within and outside of DoD. Purchase requests for services acquisitions that are not performance-based are signed by the SDO and will include the following statement:

“IAW 10 USC 2330, the Services Designated Official has approved the attached non-performance-based work statement and performance plan. Any contract or task order/delivery order resulting from this request is to be acquired using performance-based principles to the maximum extent practical.”

(c) For services over the simplified acquisition threshold, the Services Designated Official (5337.503) is responsible for approving any purchase requests for services acquisitions to be purchased using a contract or task order being awarded by an agency other than DoD. A copy of the determination and finding required at MP5317.78 shall accompany the purchase request, if applicable. Purchase requests shall include the following statements:

“The attached determination and finding is approved by the Services Designated Official for procurement outside of DoD. This acquisition has been determined to be in the best interest of the AF based on the attached market research.”

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SUBPART 5337.5 — MANAGEMENT AND OVERSIGHT OF SERVICE CONTRACTS


5337.503 Agency-head responsibilities.

5337.503-90 Management and Oversight of the Acquisition of Services.

(a) OSD(AT&L) and the Assistant Secretary of the Air Force (Acquisition) are responsible for service acquisitions $1,000,000,000 and above.

(b) The Air Force Program Executive Office for Combat and Mission Support (AFPEO/CM) is the SDO responsible for:

(1) All services acquisitions below $1,000,000,000 (not in another PEO portfolio).

(c) All other PEOs are the SDOs responsible for programs in their portfolio, except those designated as special interest.
(d) For “Other Contracting”, the HCAs or designees are the SDOs responsible for acquisitions with a total value of $100,000,000 or less, and A-76 studies involving less than 300 FTEs.

5337.503-9000 Special Interest Authorities.

(a) A services acquisition can be designated special interest by the organizations identified below. The official designating a services acquisition special interest is responsible for the management and oversight of that acquisition.
(1) OSD(AT&L) and the Assistant Secretary of the Air Force (Acquisition) (ASAF(A)), regardless of the total planned value or program affiliation.

(2) The Assistant Secretary of Defense (Networks and Information Integration) and Air Force Chief Information Officer, for information technology.

(3) AFPEO/CM, under $1,000,000,000 and A-76 studies involving less than 300 FTEs for those service acquisitions not in another PEOs portfolio.

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X

MP5301.602-3: Deletes an administrative requirement.

Mandatory Procedure


MP5301.602-3

Processing Ratifications

June 2008

5301.602-3 Procedure For Processing Ratifications (IAW FAR 1.602-3):

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7. 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.

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XI

MP5330.201-5: Clarifies CAS waiver reporting procedures.

Mandatory Procedure

MP5330.201-5

Cost Accounting Standard Waiver Report

June 2008

(e) Annual Reporting Requirements. In order to fulfill the requirement for DoD to submit an annual report to Congress and the CAS Board, MAJCOM/DRU Senior Contracting Officials (SCO) shall annually identify and report CAS waivers for any contract, subcontract, or modification from the previous fiscal year expected to have a value of $15,000,000 or more. For all CAS waivers meeting that threshold, submit the information as required in paragraph (i) below no later than 15 October each year. If no waivers meeting the threshold were granted during the previous fiscal year, submit a negative report no later than 15 October each year. Submit the report to HQ AFMC/PKPB, the designated Air Force focal point for consolidation of the reports. HQ AFMC/PKPB shall consolidate all of the MAJCOM and DRU reports and submit a final report to SAF/AQCP no later than 8 November each year. SAF/AQCP shall submit the report to the Director, Defense Procurement and Acquisition Policy (DPAP), ATTN: DPAP/CPF no later than 30 November each year. See DFARS PGI 230.201-5 for the information to be included in the annual report of exceptional case CAS waivers.

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XII

IG5304.7202-1: Provides administrative changes.

Informational Guidance

IG5304.7202-1

Commercial and Government Entity (CAGE) Codes

Centralized Contractor Registration (CCR) and CAGE Code Expedite Requests
June 2008

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2. Centralized Contractor Registration (CCR) - The steps for registering in CCR are below:

a. The vendor or contractor:

1) Obtains a Dun & Bradstreet (D&B) number by going to the D&B website or calling 866-705-5711. Once a D&B number is obtained go to Step 2.

2) Registers on the CCR website. Once there, the vendor must follow the prompts on the left side of the screen for new vendor registration. The vendor may call the CCR help desk if problems are encountered. For easy reference, the phone number is 888-227-2423 or 269-961-5757.

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a. Contracting offices may request that a CAGE code be expedited once you have determined that the vendor or contractor has initiated the CCR registration process as described above, and is showing up in the CCR database as "in process." However, a CAGE code expedite request should not be made unless you need to award in less than 48 hours. CAGE codes are usually assigned within 48 hours from the time the vendor registers. To request that a CAGE code be expedited, contact the Air Force CCR POC.

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