AFAC

Air Force Acquisition Circular (AFAC) 2009-0318
18 March 2009

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

The purpose of this AFAC is to formally incorporate the changes found in the following list of recently issued SAF/AQC Policy Memos into the AFFARS:

Policy Memo Date Title

08-C-05 25 Sept 2008 Head of Contracting Activity (HCA) Designation and
General Contracting Authority (GCA)

08-C-06 4 Aug 2008 Termination Notification

08-C-07 5 Aug 2008 Proper Use of Time-and-Materials Contract Type for
Services

08-C-08 3 Oct 2008 AFFARS MP5315.3 Source Selection

08-C-09 3 Oct 2008 AFFARS MP5315.5 Preaward, Award, Postaward
Notifications, Protests, and Mistakes

08-C-10 3 Oct 2008 AFFARS Subpart 5301.90 – Clearance

08-C-11 14 Oct 2008 Mandatory Procedures for UCAs

08-C-12 5 Nov 2008 Contracting Compliance Inspection Checklist

08-C-13 25 Nov 2008 Head of Contracting Activity (HCA) Designation and
General Contracting Authority (GCA)

08-C-14 28 Nov 2008 AFFARS MP5315.3 Source Selection

08-C-15 28 Nov 2008 AFFARS Subpart 5301.90 – Clearance and
Subpart 5307.1 – Acquisition Plans

SUMMARY OF CHANGES

I

5301.601: Head of Contracting Activities (HCAs) Responsibilities and General Contracting Authority (GCA) restructure.

II

5301.601-91: Adds requirement for the Air Force Contracting Compliance Inspection Program and the Air Force Contracting Compliance Inspection Checklist.

III

5301.9000(e), 5301.9001(b) and 5301.9001(g): Clearance requirements.

IV

5307.104(e): Adds requirement to conduct independent reviews of the draft ASP brief, or the draft Acquisition Plan, or its equivalent.

V

5312.4: Adds reporting requirements for any notice of termination for cause.

VI

5316.405-2: Identifies the Fee Determining Official on Cost-Plus-Award-Fee contracts.

VII

5316.601: Adds additional approval requirements for D&Fs for T&M contracts and IDIQ orders for services over $1M.

VIII

5316.603-3: Identifies the Approval Authority for Letter Contracts.

IX

5317.7404-1: Identifies UCA Approval Authority.

X

5337.204: Identifies Approval Authority.

XI

5337.503-90(d): Identifies SDOs for “Other Contracting.”

XII

Appendix CC, CC-103(a): Provides update to organizational name.

XIII

Appendix CC, CC-201: Provides HCA responsibilities resulting from HCA/GCA restructure.

XIV

MP5301.601-91 (Formerly MP5301.304): Provides procedures for AF Contracting Compliance Inspection Program.

XV

MP5301.9001(b): Adds new Mandatory Procedure for Clearance-MIRT Review with Informational Guidance to MIRT Review.

XVI

MP5303.104-7: Provides HCA delegations resulting from HCA/GCA restructure.

XVII

MP5312.403: Provides new reporting procedures for any notice of termination for cause.

XVIII

MP5315.3: Provides additions and revisions to evaluation criteria and roles/responsibilities of Source Selection team.

XIX

MP5315.5: Revises paragraphs MP5315.506(a)(2) and MP5315.506(a)(3) to restrict release of certain documents to offerors.

XX

MP5317.7404-3: Provides revised procedures for reporting UCAs.

XXI

MP5349: Adds reporting requirements to MP5349.402-3 for terminations.

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

I

5301.601: Head of Contracting Activities (HCAs) Responsibilities and General Contracting Authority (GCA) restructure.

SUBPART 5301.6 — CAREER DEVELOPMENT, CONTRACTING AUTHORITY, AND RESPONSIBILITIES

5301.601 General.

(a)(i) Heads of Contracting Activities (HCAs) Responsibilities.

(A) The DAS(C) and Associate Deputy Assistant Secretary (Contracting) (ADAS)(C)) are the HCA for the Air Force. All nondelegable HCA responsibilities may only be exercised by the DAS(C) and ADAS(C). The DAS(C) makes the following delegations for all delegable HCA responsibilities to:

(B) DAS(C) is the HCA for Air Force component commands tasked to support a “supported commander” during JCS declared contingency operations or exercises (See Appendix CC, Part CC-2).

(ii) General Contracting Authority.

(A) In accordance with Secretary of the Air Force Order (SAFO) 101.1, 5 Jun 99, and ASAF(A) memorandum, Delegation of Contract and Agreement Authority, 12 Dec 06, the authority to enter into, approve, terminate, and take all other appropriate actions with respect to contracts, is delegated from the Secretary of the Air Force and ASAF(A) to the DAS(C) and ADAS(C).

(B) The authority to enter into, approve, modify, and terminate contracts is hereby redelegated to MAJCOM/DRU SCOs and to the SCCOs at SMC, ESC, ASC, and AAC. 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

5301.601-91: Adds requirements for the Air Force Contracting Compliance Inspection Program and the Air Force Contracting Compliance Inspection Checklist.

SUBPART 5301.6 — CAREER DEVELOPMENT, CONTRACTING AUTHORITY, AND RESPONSIBILITIES

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5301.601 General.

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5301.601-91 Air Force Contracting Compliance Inspection Program.

See MP5301.601-91 for requirements of the Air Force Contracting Compliance Inspection Program and the Air Force Contracting Compliance Inspection Checklist.

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III

5301.9000(e) and 5301.9001(g): Clearance requirements.

SUBPART 5301.90 — CLEARANCE

5301.9000 Scope and definitions.

(a) This subpart establishes clearance requirements for the contract actions identified below:

(1) An action intended to result in award of a competed, sole source or negotiated contract or modification of any contract;

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(e) “Contract Clearance” means:
(1) For competitive acquisitions conducted without discussions, approval by the clearance approval authority for the SSA to make the decision to award.

(2) For competitive acquisitions with discussions –

revisions in accordance with FAR 15.307; and

decision.

(3) For noncompetitive contract actions using traditional or commercial pricing, approval by the clearance approval authority to award a contract or contract modification/contract action.

(4) For actions using Integrated Product Team (IPT)/One Pass pricing method, approval to conclude negotiations and award a contract.

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5301.9001 Policy, thresholds, and approvals.

(a) The objectives of the business and contract clearance process are to ensure that:

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(b) The clearance approval authority shall ensure that the clearance process meets the objectives in paragraph (a) above. The clearance approval authority shall use multi-functional independent review teams (MIRTs) as an integral component of the clearance process by validating each critical decision point as described in Mandatory Procedure MP5301.9001(b).

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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.

(1) For PEO programs supported by SMC, PEO programs supported by AFMC and for AFMC Other Contracting (excluding Operational)

Contract Value*

Clearance Approval Authority

>$50M

SCCO (See (i) below)

$25M - $50M

Wing level PK/A7K/MSK/SPO Chief of Contracts for SMC PEO Programs/or Deputy

$5M - $25M

Group level PK/A7K/MSK or Deputy/at least one level above the CO for SMC PEO Programs

(i) The Deputy Assistant Secretary (Contracting) (DAS(C)) at his or her discretion, may assume the clearance approval authority for the following acquisitions:

(A) For ACAT I (Space/Non-space programs) competitive acquisitions prior to Key Decision Point B or Milestone B (pre-MDAP on Major Defense Acquisition Program Lists); and

(ii) Request for confirmation of the clearance approval authority for these programs in paragraph (i)(A) and (B) shall be submitted to SAF/AQCK, safaqck.workflow@pentagon.af.mil, 10 working days prior to convening the acquisition strategy panel (ASP) or the staffing of the acquisition plan (AP).

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IV

5307.104(e): Adds requirement to conduct independent reviews of the draft ASP brief, or the draft Acquisition Plan, or its equivalent.

SUBPART 5307.1 — ACQUISITION PLANS

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5307.104 General procedures.

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(g) Independent Review. The Clearance Approval Authority will conduct an independent review of the draft Acquisition Strategy Panel brief, or draft Acquisition Plan, or its equivalent in accordance with Mandatory Procedure MP5301.9001(b), Clearance – Multi-functional Independent Review.

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V

5312.4: Adds reporting requirements for any notice of termination for cause.

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PART 5312
ACQUISITION OF COMMERCIAL ITEMS

[Revised March 18, 2009]

SUBPART 5312.4 – UNIQUE REQUIREMENTS REGARDING TERMS AND CONDITIONS FOR COMMERCIAL ITEMS

5312.403(c) Termination for cause.

See Mandatory Procedure MP5312.403 for required reporting procedures.

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VI

5316.405-2: Identifies the Fee Determining Official on Cost-Plus-Award-Fee contracts.

SUBPART 5316.4 — INCENTIVE CONTRACTS

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5316.405-2 Cost-plus-award-fee contracts.

(a) The PEO is the Fee Determining Official for the PEO’s assigned programs. For Other Contracting, the HCA will designate the Fee Determining Official. The PEO or HCA for Other Contracting may designate this responsibility on an individual contract or class basis. This designation may be made by name, position, or function, without limitation.

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VII

5316.601: Adds additional approval requirements for D&Fs for T&M contracts and IDIQ orders for services over $1M.

SUBPART 5316.6 – TIME-AND-MATERIALS, LABOR-HOUR, AND LETTER CONTRACTS

5316.601(d)-90 Limitations

Determinations and Findings (D&Fs) for Time-and-Materials contracts and orders under Indefinite-Delivery contracts for services above $1M (including all options) shall be approved by the Chief of the Contracting Office.

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VIII

5316.603-3: Clarifies Approval Authority for Letter Contracts.

SUBPART 5316.6 – TIME-AND-MATERIALS, LABOR-HOUR, AND LETTER CONTRACTS

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5316.603 Letter contracts. (No Text)

5316.603-3 Limitations.

For AFMC and SMC actions equal to or greater than $50M, approval to use a letter contract may only be exercised by the SCCO. For actions under $50M, the approval authority may be delegated by the SCCO to no lower than the COCO. For all other contracting activities, the approval authority may not be delegated below the SCO.

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IX

5317.7404-1: Identifies UCA Approval Authority.

SUBPART 5317.74 — UNDEFINITIZED CONTRACT ACTIONS

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5317.7404 Limitations. (No Text)

5317.7404-1 Authorization.

For AFMC and SMC actions equal to or greater than $50M, Undefinitized Contract Action (UCA) approval may only be exercised by the SCCO. For actions under $50M, the UCA approval authority may be delegated by the SCCO to no lower than the COCO. For all other contracting activities, UCA approval authority may not be delegated below the SCO.

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X

5337.204: Identifies approval authority

SUBPART 5337.2 — ADVISORY AND ASSISTANCE SERVICES

5337.204 Guidelines for Determining Availability of Personnel.

This approval has been delegated to MAJCOM/DRU Commanders and, within AFMC and AFSPC, to the Center Commanders.

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XI

5337.503-90(d): Identifies SDOs for “Other Contracting.”

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.

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(d) For “Other Contracting”, MAJCOM/DRU Commanders 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.

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XII

Appendix CC, CC-103(a): Provides update to organizational name.

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CC-103 Responsibilities.

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(a) SAF/AQC Contingency Functional Area Manager (FAM) shall:

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XIII

Appendix CC, CC-201: Provides changes resulting from HCA/GCA restructure.

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PART CC-2 — CONTRACTING AUTHORITY AND ORGANIZATION

CC-201 Contracting authority.

DAS(C) is the HCA for Air Force component commands tasked to support a “supported commander” during JCS declared contingency operations or exercises in accordance with AFFARS 5301.601. All non-delegable HCA responsibilities shall be performed by the DAS(C) and ADAS(C). Any delegable HCA responsibilities may be performed by the Senior Contracting Official (SCO) of the Air Force component command tasked to support the “supported commander” (as defined in JP 1-02) for contracting actions executed by CCOs deployed in support of the Joint Chief of Staff (JCS) declared contingency operations or exercises, regardless of the geographical location of the CCOs deployment. However, this may not apply for contracting actions executed by joint contracting activities. See the joint contracting activity’s policies or supplements regarding HCA responsibilities and delegations. Further, for CCOs deployed for the sole purpose of augmenting an established contracting office, or contracting officers providing collateral support to the operation or exercise from their home base, the HCA delegations remain as specified in 5301.601 for that contracting office.

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XIV

MP5301.601-91 (Formerly MP5301.304): Provides procedures for AF Contracting Compliance Inspection Program

See MP5301.601-91, Air Force Contracting Compliance Inspection Program.

XV

MP5301.9001(b): Adds new Mandatory Procedure for Clearance-MIRT Review with Information Guidance to MIRT Review.

See MP5301.9001(b), Clearance-MIRT Review w/Informational Guidance to MIRT Review.

XVI

MP5303.104-7(g): Provides HCA delegations resulting from HCA/GCA restructure.

MP5303

Improper Business Practices and Personal Conflicts of Interest

March 2009
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MP5303.104-7 Violations or Possible Violations

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(g) HCA delegations:

This HCA responsibility is retained by SAF/AQC but may be delegated on a case-by-case basis. The delegee must be of General Officer, Flag, or Senior Executive Service, or equivalent rank. Requests for delegation of this HCA responsibility must be sent to SAF/AQCK, safaqck.workflow@pentagon.af.mil.

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XVII

MP5312.403: Provides new mandatory reporting procedures for any notice of termination for cause.

MP5312.4

Unique Requirements Regarding Terms and Conditions for Commercial Items

March 2009

5312.403 Termination.

(c) Termination for cause. The contracting officer shall, upon issuance of the termination notice, immediately inform SAF/AQCK and distribute a copy of the termination notice and Report of Termination For Cause (as required by DFARS PGI 212.403), within two business days, to SAF/AQCK, safaqck.workflow@pentagon.af.mil. SAF/AQCK will forward the Report of Termination for Cause to OUSD(AT&L)DPAP(CPIC) no later than 10 calendar days after the issuance of the termination for cause notice. In addition to the data required by DFARS PGI 212.403, include the following information in the Report of Termination for Cause:

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XVIII

MP5315.3: Provides additions and revisions to evaluation criteria and roles/responsibilities of Source Selection team.

See MP5315.3, Source Selection, for additions and revisions.

XIX

MP5315.5: Revises paragraphs MP5315.506(a)(2) and MP5315.506(a)(3) to restrict release of certain documents to offerors.

MP5315.5

Preaward, Award, and Postaward Notifications,
Protests, and Mistakes

March 2009

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MP5315.506 Postaward debriefing of offerors.

(a) Information showing how the offeror was evaluated and rated against the evaluation factors as compared to the successful offeror shall be included in the debriefing.

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XX

MP5317.7404-3: Provides revised procedures for reporting UCAs.

See MP5317.7404-3, Definitization Schedule, for revised procedures and reporting format.

XXI

MP5349: Adds reporting requirements to MP5349.402-3 and MP5349.403

MP5349

Termination of Contracts

March 2009

SUBPART 5349.4 — TERMINATION FOR DEFAULT

5349.402 Termination of fixed-price contracts for default. (No Text)

5349.402-3 Procedure for default.

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(h) The contracting officer shall, upon issuance of the termination notice, immediately inform SAF/AQCK and distribute a copy of the termination notice and Report of Termination For Default (as required by DFARS PGI 249.470(1)), within two business days, to SAF/AQCK, safaqck.workflow@pentagon.af.mil. SAF/AQCK will forward the Report of Termination for Default to OUSD(AT&L)DPAP (CPIC) no later than 10 calendar days after the issuance of the termination for default notice In addition to the data required by DFARS PGI 249.470(1), include the following information in the Report of Termination for Default:

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5349.403 Termination of Cost-Reimbursement Contracts for Default

(a) The contracting officer shall, upon issuance of the termination notice, immediately inform SAF/AQCK and forward a copy of the termination notice along with Report of Termination for Default within two business days to SAF/AQCK, safaqck.workflow@pentagon.af.mil. SAF/AQCK will forward the Report of Termination for Default to OUSD(AT&L)DPAP(CPIC) no later than 10 calendar days after the issuance of the termination for default notice. In addition to the data required by DFARS PGI 249.470(1), include the following information in the Report of Termination for Default:

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