AFAC

Air Force Acquisition Circular (AFAC) 2011-0214

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

SUMMARY OF CHANGES

I

5301.602-2(c)(3): Administrative change to reflect inflation adjustment of acquisition-related thresholds, effective 1 October 2010 (FAR Case 2008-024, Final Rule and DFARS Case 2009-D003, Final Rule).

II

5302, 5306.202(b)(1), 5307.104, 5307.104-90, 5307.104-91, 5315.303(a)(2)(i), 5315.303(a)(2)(ii), 5317.190(b)(1), 5317.190(b)(2), 5317.204(e), 5318.104, and MP5315.3: Reorganization of AF Space Organization

III

5301.301, 5313.106-2, and MP5315.3: Partially incorporates SAF/AQC Policy Memo 10-C-15, 15 October 2010, MAJCOM Air Force Federal Acquisition Regulation Supplements (AFFARS)

IV

5302: Administrative change to remove the DFARS reference in the definitions for “Operational Contracting” and “Other Contracting” since DFARS 204.670-1 no longer exists.

V

5306.502 and MP5306.502 (New): Incorporates SAF/AQC Policy Memo 10-C-16, 21 October 2010, Air Force Competition and Commercial Advocacy Program

VI

5312.4 and MP5312.4: Rescind in accordance with FAR Case 2008-16, Final Rule, effective 29 October 2010, which now requires contracting officers to report defective cost or pricing data and terminations for cause or default into the FAPIIS module of the PPIRS

VII

5315.400 (S-90), MP5315.4 (New), 5317.7404-3, and MP5317.74: Incorporates SAF/AQC Policy Memo 10-C-03, 17 March 2010, UCAs; SAF/AQC Policy Memo 10-C-04, 24 March 2010, Timely UCA Definitization/Negotiated Awards – Contractor Responsiveness; and SAF/AQC Policy Memo 10-C-14, 13 October 2010, Mandatory Use of the AFPAC

VIII

5315.402: Deleted per OUSD(AT&L)/DPAP Memo, 24 November 2010, Improving Competition in Defense Procurements

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

I

5301.602-2(c)(3): Administrative change to reflect inflation adjustment of acquisition-related thresholds, effective October 1, 2010 (FAR Case 2008-024, Final Rule and DFARS Case 2009-D003, Final Rule)

PART 5301
FEDERAL ACQUISITION REGULATIONS SYSTEM

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5301.602-2 Responsibilities

(c) Legal Review

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(3) All Justifications and Approvals (J&A) requests for actions expected to exceed $650,000

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II

5302, 5306.202(b)(1), 5307.104, 5307.104-90, 5307.104-91, 5315.303(a)(2)(i), 5315.303(a)(2)(ii), 5317.190(b)(1), 5317.190(b)(2), 5317.204(e), 5318.104, and MP5315.3: Reorganization of AF Space Organization

SUBPART 5302.1 — DEFINITIONS

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"Space-related Programs" – Deleted.

“USECAF” – Deleted.

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PART 5306
Competition Requirements

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SUBPART 5306.2 — FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES


5306.202 Establishing or Maintaining Alternative Sources

(b)(1) The Life Cycle Management Plan (LCMP)/Acquisition Plan (AP) approval authority (see 5307.104-90 and 5307.104-91) is authorized to sign and approve the Determination and Findings (D&F) required by FAR 6.202(b)(1).

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PART 5307
Acquisition Planning

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SUBPART 5307.1 — ACQUISITION PLANS


5307.104 General Procedures

(a) In order to help develop a sound acquisition strategy, the acquisition team shall provide appropriate opportunities for the early involvement of industry in all acquisitions and the Defense Contract Management Agency and Defense Contract Audit Agency in non-competitive acquisitions.

(b) The program manager shall mark the Life Cycle Management Plan (LCMP)/Acquisition Plan (AP) “FOR OFFICIAL USE ONLY” if it contains information which should not be released outside the Government and handle it accordingly.

(S-90)(a) Solicitation Release

(1) For ACAT programs, unless otherwise authorized by the Milestone Decision Authority (MDA), the contracting officer shall not release the formal solicitation until the MDA has approved the Acquisition Strategy/LCMP in accordance with USD(AT&L) and Air Force guidance.

(2) For all other acquisitions, the contracting officer shall not release the formal solicitation until the approval official has approved the AP unless the acquisition is being conducted pursuant to the authority of FAR 6.302-2, unusual and compelling urgency.

(b) Changes. If a change occurs to the program/acquisition that significantly affects the acquisition (e.g., scope, dollar value, contract type), the program manager with the assistance of the contracting officer shall prepare a revised LCMP/AP and a statement that summarizes the changes and obtain the approval of the revised LCMP/AP.

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5307.104-90 Acquisition Strategy Panels (ASP)

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(b) ASP chairpersons

(1) For ACAT I or special designated programs, the Service Acquisition Executive (SAE) is the ASP chairperson.

(2) For ACAT II and III programs, the MDA is the ASP chairperson.

(i) For ACAT II programs, if the PEO has been delegated MDA/DAO and wishes to further delegate the responsibility for chairing an ASP obtain concurrence from the SAE and ensure the concurrence is documented in the LCMP.

(ii) For ACAT III programs, MDAs may delegate the responsibility for chairing an ASP on a case-by-case basis.

(3) For AFPEO/CM acquisitions, the PEO is the ASP chairperson, unless delegated.

(4) For Commodity Council acquisitions not within the PEO/CM Portfolio, the SCO or designee is the ASP chairperson.

(5) For Other Contracting, ASP Chairperson shall be the SCO or designee for acquisitions other than for services. The ASP Chairperson for services shall be the Services Designated Official (SDO).

(c) ASP membership and content

(1) Based on the unique requirements of each acquisition, the ASP chairperson shall determine the panel membership and the required content for each ASP that he/she chairs.

(2) For all ACAT I programs, the ASP chairperson shall use the SAE panel, tailored as necessary. The AF/PM&AE ASP Secretariat will facilitate the ASP meetings. Refer to the AF/PM&AE ASP website for ASP and SAE panel information.

(d) ASP minutes. At the conclusion of the ASP, the program manager or contracting officer shall prepare ASP minutes and obtain approval of the ASP minutes from the ASP Chairperson.

5307.104-91 Air Force Procedures for Life Cycle Management Plans (LCMP)

(a) General requirements

(1) For ACAT programs:

Program managers shall prepare LCMPs for all Acquisition Category (ACAT) I, II, and III programs (see AFI 63-101, paragraph 3.39). The LCMP may be tailored at the discretion of the LCMP approval authority. However, the LCMP approval authority does not have the authority to waive the content requirements for a written acquisition plan.

(b) Approval requirements

(1) For ACAT ID and IAM programs, the SAE will sign the LCMP prior to forwarding it to OSD(AT&L).

(2) For ACAT IC, IAC, II and III programs, the MDA is the LCMP approval authority.

(i) If the PEO has been delegated MDA and wishes to further delegate the responsibility for approving the LCMP obtain concurrence from SAE and ensure the concurrence is documented in the Weekly Acquisition Report and ASP minutes.

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PART 5315
Contracting by Negotiation

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5315.303 Responsibilities

(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 greater than $10M, PEO/CM acquisitions and acquisitions using other than PPT or LPTA procedures are listed below:

(i) For ACAT I programs, ASAF(A) is the SSA.

(ii) For ACAT II and III programs, the PEO/DAO is the SSA.

(iii) For acquisitions in the AFPEO/CM portfolio, the PEO is the SSA.

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PART 5317
Special Contracting Methods

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5317.190 General

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(b) Requirements.

(1) The ASAF(A) has the authority to enter into multi-year contracts which exceed any of the thresholds established in DFARS 217.170(d)(1), subject to the requirements of statute and higher regulation as outlined in FAR 17.1, as supplemented.

(2) The HCA has the authority to enter into multi-year contracts which are below the thresholds established in DFARS 217.170(d)(1), subject to the requirements of statute [see 10 U.S.C. 2306b(i)] and higher regulation as outlined in FAR 17.1, as supplemented.

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5317.204 Contracts

(e) The Life Cycle Management Plan (LCMP)/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/AP is not required, the contracting officer has the authority to approve contract periods in excess of five years, unless otherwise restricted by statue.

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PART 5318
Emergency Acquisitions

SUBPART 5318.1 — AVAILABLE ACQUISITIONFLEXIBILITIES

5318.104 Unusual and Compelling Urgency

The Life Cycle Management Plan (LCMP)/Acquisition Plan (AP) approval authority is authorized to sign and approve the Determination and Findings (D&F) required by FAR 6.202(b)(1). See 5306.302-2.

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MP5315.3
Source Selection

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4.1. Source Selection Team

Source Selection Authority Designations [AFFARS 5315.303(a)]

SSA Designations

$10M and below

Greater than $10M*

ACAT I

CO

ASAF(A)

ACAT II and III

CO

PEO **

AFPEO/CM Acquisitions

N/A

PEO ***

Other Contracting

CO

****

* Delegable to no lower than the CO.
** PEOs often designate Source Selection Authority.
*** Generally, AFPEO/CM is the Source Selection Authority for services acquisitions >$100M or A-76 acquisitions involving 300 or more positions. For services acquisitions not in a PEO portfolio, see other contracting.
**** Except for AFMC, the SSA is the Wing Commander or MAJCOM/DRU two-letter director
responsible for the requirement. Delegation of SSA is authorized.

4.1.1. The Source Selection Authority shall

4.1.1.1. Be responsible for the proper and efficient conduct of the source selection process in accordance with this procedure.

4.1.1.2. Appoint the respective chairpersons for the Source Selection Evaluation Team and the Source Selection Advisory Council when used.

4.1.1.2.1. For ACAT I competitive acquisitions prior to Milestone B (pre-MDAP on Major Defense Acquisition Program lists), appointment of the chairperson for the Source Selection Evaluation Team and the Contracting Officer(s) requires approval of the Senior Procurement Executive (SPE). In the absence of the SPE, the Deputy Assistant Secretary (Contracting) (DAS(C)) may approve these appointment(s).

4.1.1.2.2. ACAT I competitive acquisitions, as referred to in paragraph 4.1.1.2.1, the Center Commander will submit nominations for SPE approval. The nomination package(s) will be submitted to SAF/AQCK, safaqck.workflow@pentagon.af.mil, when acquisition officials/team members are assigned and allow 10 working days for SPE approval. SAF/AQCK will coordinate nomination and approval packages with the DAS(C) and SPE. Nomination packages will include background information on the candidates for each position. Such information will describe each candidate’s relevant experience and positions held and will provide a rationale for concluding that the selected candidate is the best qualified to perform the duties of SSET chairperson or Contracting Officer, as applicable. The DAS(C) will review each nomination package prior to SPE consideration. The DAS(C) and/or SPE, at their discretion, may interview proposed candidates. Also, the DAS(C) or the SPE may request additional nominees be submitted for consideration.

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III

5301.301, 5313.106-2, and MP5315.3: Partially incorporates SAF/AQC Policy Memo 10-C-15, 15 October 2010, MAJCOM Air Force Federal Acquisition Regulation Supplements (AFFARS)

PART 5301
FEDERAL ACQUISITION REGULATIONS SYSTEM

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SUBPART 5301.3 — AGENCY ACQUISITION REGULATIONS


5301.301 Policy

The AFFARS is issued by the DAS(C) based on authority granted by HAF MD 1-10, 8 Apr 09, and ASAF(A) memorandum, Delegation of Contract and Agreement Authority, 12 Dec 06.

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PART 5313
Simplified Acquisition Procedures

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SUBPART 5313.1 — PROCEDURES

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5313.106-2 Evaluation of Quotations or Offerors

(b) Evaluation procedures.

(3) When evaluating past performance in competitive, negotiated acquisitions of less than $5M for commodities, contracting officers shall utilize the government-wide Past Performance Information Retrieval System - Statistical Reporting (PPIRS-SR). See paragraph 5.5.2.1.3 in MP5315.3 for solicitation language.

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MP5315.3
Source Selection

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5.5.2.1 Sources of Past Performance Information for Evaluation

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5.5.2.1.3 When evaluating past performance in competitive, negotiated acquisitions of less than $5M for commodities, contracting officers shall utilize the government-wide Past Performance Information Retrieval System-Statistical Reporting (PPIRS-SR). Insert solicitation language written substantially as follows in Section M:

(1) Quantifiable contractor quality and delivery performance data contained within the government-wide Past Performance Information Retrieval System-Statistical Reporting (PPIRS-SR) will be utilized in the evaluation of the past performance factor for offers received in response to this solicitation. Suppliers with no history in PPIRS-SR will be displayed to contracting officers without a rating.

(2) PPIRS-SR classifications are established monthly for each supplier and can be reviewed at http://www.ppirs.gov. Suppliers are granted access to PPIRS-SR for their own classifications. Offerors are encouraged to review their own classifications as well as the PPIRS-SR reporting procedures and methodology detailed in the PPIRS-SR Procedures Manual and the PPIRS-SR User Guide available at http://www.ppirs.gov. The method to challenge a rating is also found on the identified website.

Insert the appropriate language substantially as follows in Section M to identify whether the Standard or Best Value Assessment will be used, and if Best Value Assessment will be used with edited default values for quality, delivery and cost/price (other than weighted 1/3 each):

(1) For purposes of this evaluation, the Standard Assessment will be used; or

(2) For purposes of this evaluation, the Best Value Assessment will be used; or

(3) The following Best Value Assessment weighting will be used resulting in a best offer ranking:

Quality

X%

Delivery

X%

Cost / Price

X%

 

100%

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IV

5302: Administrative change to remove the DFARS reference in the definitions for “Operational Contracting” and “Other Contracting” since DFARS 204.670-1 no longer exists.

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“Operational Contracting” is a subset of “Other Contracting” and means those contracting actions 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.

"Other Contracting" means those contracting actions, not in a PEO/DAO portfolio, taken to support acquisition programs, maintain and repair fielded weapon systems, and support Air Force operations. The term includes, but is not limited to, contracts for local purchase and other operational support; replenishment spares; programmed depot maintenance; weapon system modifications which do not involve significant development; contractor logistics support; manpower and support; and science and technology (i.e., research, exploratory development or advanced development, and not intended for a system specific application (6.1, 6.2, or 6.3A funds)).

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V

5306.502 and MP5306.502 (New): Incorporates SAF/AQC Policy Memo 10-C-16, 21 October 2010, Air Force Competition and Commercial Advocacy Program

PART 5306
Competition Requirements

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5306.502 Duties and Responsibilities

See MP5306.502 for required Air Force Competition and Commercial Advocacy Program Duties and Responsibilities.

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VI

5312.4 and MP5312.403: Rescind in accordance with FAR Case 2008-16, Final Rule, effective 29 October 2010, which now requires contracting officers to report defective cost or pricing data and terminations for cause or default into the FAPIIS module of the PPIRS

PART 5312
Acquisition of Commercial Items

Reserved

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VII

5315.400 (S-90), MP5315.4 (New), 5317.7404-3, and MP5317.74: Incorporates SAF/AQC Policy Memo 10-C-03, 17 March 2010, UCAs; SAF/AQC Policy Memo 10-C-04, 24 March 2010, Timely UCA Definitization/Negotiated Awards – Contractor Responsiveness; and SAF/AQC Policy Memo 10-C-14, 13 October 2010, Mandatory Use of the AFPAC

PART 5315
Contracting by Negotiation

5315.400 (S-90)

See MP5315.4 for required Air Force contract pricing procedures.

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PART 5317
Special Contracting Methods

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SUBPART 5317.74 — UNDEFINITIZED CONTRACT ACTIONS

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5317.7404-3 Definitization Schedule

See MP5317.74 for UCA approval authorities, proposal instructions, reporting requirements and contracting officer file documentation.

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MP5317.74
Undefinitized Contract Actions (UCAs)

1. Policy.

a. UCAs should be used on an infrequent basis for clearly defined, urgent requirements and must be definitized within the established 180 day definitization schedule.

b. Contracting officers must only obligate funds consistent with the contractor’s spend plan for the undefinitized period. Obligating funds in excess of the contractor’s spend plan encourages extended periods of performance prior to definitization.

2. Notification Requirements.

To comply with the requirements described in DFARS 217.7402, SCOs or the SCCOs at ASC, ESC, AAC, and SMC shall provide notification to SAF/AQCK, safaqck.workflow@pentagon.af.mil, 30 days prior to the issuance of any UCA for a foreign military sale or congressionally mandated long-lead procurement contract that does not adhere to the policies and procedures described in DFARS 217.74. The notification shall include detailed rationale to support the determination. Any applicable special access program action shall be forwarded, through secure program channels, to SAF/AQCS, who will coordinate the notification through SAF/AQC.

3. Proposal and Definitization Requirements

a. Contracting officers must comply with AFFARS MP5315.4, Contract Pricing, for procedures on proposal kick-off and proposal walk-through meetings, proposal instructions, and requesting data/documentation after receipt of the proposal.

b. Undefinitized Contract Actions (UCA) approval authorities shall establish procedures for field offices to track all UCAs as defined in DFARS 217.7401(d) and DFARS 217.7402, to the maximum extent practicable.

c. For any UCA that falls more than 14 days behind its schedule at any point in the definitization process, the cognizant SCO/SCCO must review each such UCA monthly and provide the DAS(C) a status report identifying the remedial actions that have been or are being taken to get back on schedule no later than 5 business days after the end of the month. The report, in e-mail format, shall be sent to safaqck.workflow@pentagon.af.mil. Further, the DAS(C) may require the SCO/SCCO and any members of the definitization team to brief the appropriate HAF staff on the status of any UCA not definitized with 180 days of issuance. For any delays in the definitization schedule, contracting officers shall document the contract file with the justification to include the revised definitization milestone schedule.

4. Profit.

Contracting officers must comply with the Weighted Guidelines method at DFARS 215.404-71-3(d)(2) which indicates that, when costs have been incurred prior to definitization, generally the contract type risk should be regarded to be in the low end of the designated range. If a substantial portion of the costs have been incurred prior to definitization, the contracting officer may assign a value as low as 0 percent, regardless of contract type. AFMC maintains a web-based Weighted Guidelines program available at https://www.wgl.wpafb.af.mil/wgl/. This web-based tool provides the capability to address incurred costs in the profit analysis for UCAs. Contracting officers must use this tool throughout the UCA negotiation process to make adjustments based on costs incurred to the AF profit objective.

5. Plans and Reports

To comply with the semi-annual UCA reporting requirements described in DFARS 217.7405, SAF/AQCK will request all SCOs to submit their semi-annual UCA Management Reports for UCAs with an estimated value of more than $5M in the format described in DFARS PGI 217.7405(2)(ii) to SAF/AQCK, safaqck.workflow@pentagon.af.mil. SAF/AQCK will consolidate the UCA Reports and submit the consolidated report to OUSD (AT&L), Director, Defense Procurement and Acquisition Policy no later than April 30 and October 31 of each year.

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VIII

5315.402: Deleted per OUSD(AT&L)/DPAP Memo, 24 November 2010, Improving Competition in Defense Procurements

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SUBPART 5315.4 — CONTRACT PRICING