IMMEDIATE ACTION

DEPARTMENT OF THE AIR FORCE AFMC ACQUISITION CIRCULAR 96-2

Headquarters AFMC

Wright-Patterson AFB OH 45433 15 February 1996

Air Force Materiel Command Acquisition Circular (AFMCAC)

1. All material published in this AFMCAC is effective upon receipt unless otherwise indicated. Each item in this AFMCAC shall remain in effect until specifically cancelled or incorporated by a subsequent AFMCAC or change to the AFMC FAR Supplement (AFMCFARS).

2. This AFMCAC supersedes Interim Policy Letters (IPLs) 96-001 through 96-006 except for any coverage to Parts 10 and 12 in IPLs 96-003, 96-004 and 96-005.

These changes will be addressed in a future AFMCAC and the numbering revised to match FAR, DFAR and AFFAR.

3. AFMCAC 96-2 amends the AFMCFARS as specified below (all changes are marked by revision bars on the right hand side of the pages):

4. Part 5352--Solicitation Provisions and Contract Clauses, has been replaced in its entirety due to addition of numerous clauses and provisions.

ITEM 1.

a. Administrative changes were made to eight pages.

b. The pages affected by these administrative changes are: 36.90-1, 52-i, 52-ii, 52-iii, 52-iv, 52-v, 52-16, 52-17 and 52-89

ITEM 2.

a. Title: AFMCFARS 5301.9008 (Pages 1.9-2 and 1.9-3 ) -- Content of the Request for Business Clearance (RBC)

b. Purpose/Explanation of Change(s): This requires conveyance of pertinent budget/funding information to the BCRA/BCAA during the business clearance process. This permits the BCRA/BCAA to assess the affordability of the contract/change. (This is not a Lightning Bolt #4 case and was not published in an IPL.)

__________________________________

No. of Attached Printed Pages: 284

OPR: PKP (Chris Shockey)

Distribution: F, X (Same as AFMCFAR Sup)

HQ USAF/LG, Wash DC 20330-5000..........4

SAF/AQC/AQCF, Wash DC 20330-5000........3

HQ USAF/JACPD, Wash DC 20330-5000.......1

HQ AFIA/IM, Kirtland AFB NM 87117-5670..1

AUL/LDEA, Maxwell AFB AL 36112-5564.....1

Technical Services Assoc. 2 Market Plaza Way Mechanicsburg PA 17055-0001....1

ITEM 3.

a. Title: AFMCFARS 5304.404-90 and 5352.204-9001 (Pages 4-i, 4.4-1 and 52-1) -- Classified Effort

b. Purpose/Explanation of Change(s): AFMCFAR Supplement 5304.404-90 and associated clause 5352.204-9001 apply to classified orders placed under a Basic Ordering Agreement (BOA) when a DD Form 254 is included in the BOA but also applies to orders. (Supersedes IPL 96-005, paragraph 1.a., Atch 1, dated 8 Dec 95)

ITEM 4.

a. Title: AFMCFARS 5305.207 & 5305.404-1 (Pages 5.2-1 and 5.4-1) -- Preparation and Transmittal of Synopsis, and Release Procedures

b. Purpose/Explanation of Change(s): Due to closure of the USAF/AFMC Liaison Office (Canada), the requirement to provide copies of synopses and long-range acquisition estimates to that office is deleted. (This was not a Lightning Bolt case and was not published in an IPL.)

ITEM 5.

a. Title: AFMCFARS 5309.206-1(d)(90) & (91), 5352.209-9005 and 5352.209-9006 (Pages 9.2-4 and 52-6) -- Acquisitions Subject to Qualification Requirements

b. Purpose/Explanation of Change(s): This provision and clause and prescriptive language are necessary to ensure that end items are appropriately identified in the solicitation and resulting contract. Many of the Air Logistics Centers deal extensively with brand name or equals and commercial item descriptions. These clauses help to identify the NSN/Part Number being offered. (Supersedes IPL 96-004, paragraph 1.a., Atch 1, dated 4 Dec 95)

ITEM 6.

a. Title: AFMCFARS 5309.308-1(b)(3)(90), 5309.308-2(b)(3)(90) and 5352.209-9007 (Pages 9-I, 9.3-1 and 52-6) -- Contractor Material Purchased Before First Article Approval

b. Purpose/Explanation of Change(s): This clause augments FAR 52.209-4 Alt II which allows the contractor to purchase materials prior to first article approval but does not identify or limit the approved material/component purchases. (Supersedes IPL 96-005, paragraph 1.b., Atch 2, dated 8 Dec 95)

ITEM 7.

a. Title: AFMCFARS 5314.301(d)(91), 5315.407(90)(c) and 5352.214-9001 (Pages 14.3-1, 15.4-7 and 52-9) -- Award-All or None Basis

b. Purpose/Explanation of Change(s): The standard construction IFB/

solicitation FAR clause entitled “Contract Award” allows the Government to accept any item or combination of items unless the solicitation specifically precludes such an approach. This change provides the statement, required by the standard FAR provision, that the Government intends only to make one award. (Supersedes IPL 96-003, paragraph 1.b., Atch 2, dated 15 Nov 95)

ITEM 8.

a. Title: AFMCFARS 5315.407(90)(d), 5352.215-9017 and 5352.215-9021 (Pages 15.4-7, 15.4-8 and 52-21 and 52-23) -- Engineering Data and Replacement Items

b. Purpose/Explanation of Change(s): This change allows sole source contractors to meet “build to print” Government requirements in an RFP when the contractor has changed its design of a part since the contractor’s last delivery to the Government. In order to protect the Government, the provision and clause provide for a remedy if the offeror proposes and ultimately uses a part unequal to the part specified by the Government. Please note: This AFMCAC makes minor changes to the language and adds AFMCFARS 5352.215-9021 which was not published in IPL 96-005. (Supersedes IPL 96-005, paragraph 1.d., Atch 4, dated 8 Dec 95)

ITEM 9.

a. Title: AFMCFARS 5315.609(d) and 5352.215-9018 (Pages 15-i, 15.6-10, 15.6-11 and 52-21) -- Step Two of Two-Step Request for Proposal

b. Purpose/Explanation of Change(s): The new clause, to be inserted in RFPs for the second step of the Two-Step RFP process, explains which cost/price proposals will be accepted for evaluation. This will ensure consistency in the use of the two-step technique across AFMC. (Supersedes IPL 96-005, paragraph 1.e., Atch 5, dated 8 Dec 95)

ITEM 10.

a. Title: AFMCFARS 5315.614-90, 5352.215-9019 and 5352.215-9020 (Pages 15-i, 15.6-11 and 52-22) -- Incorporation of Contractor Technical Proposal

b. Purpose/Explanation of Change(s): This clause and provision is used when incorporation of a contractor’s technical proposal in contracts is contemplated. The clause specifies that in the event of conflict between a contractor’s own technical proposal and any other contractual requirement, the conflict shall be resolved in accordance with the Order of Precedence clause. Nothing contained in the contractor’s technical proposal shall constitute a waiver to any other requirement of this contract. This clause establishes the contractor’s technical proposal in the order of precedence as determined by the PCO. Additionally, the clause provides language to protect the government from paying for updating contractor written and contractually incorporated documents which are changed during the negotiations but not updated prior to award of the contract. This clause specifies that such changes are administrative and require no change to contract terms such as cost or price. (Supersedes IPL 96-006, paragraph 1.a., Atch 1, dated 15 Dec 95)

ITEM 11.

a. Title: AFMCFARS 5315.804-6(f) and 5352.215.9016 (Pages 15.8-2 and 52-20) --Pre-Production/Start-Up Costs

b. Purpose/Explanation of Change(s): This change provides notification to the contractor and obtains their agreement that their total pre-production and start-up costs incident to this contract were either included in the prices quoted or were proposed to be absorbed by the contractor. No pre-production or start-up costs incident to this contract will be charged to the Government in any future non-competitive procurement. (Supersedes IPL 96-003, paragraph 1.c., Atch 3, dated 15 Nov 95)

ITEM 12.

a. Title: AFMCFARS 5315.903(a), 5315.970 and 5315.975 (Pages 15-ii, 15.9-1 and 15.9-2) -- Contracting Officer Responsibilities; DD Form 1547, Record of Weighted Guidelines Application, RCS: DD-A&T(Q)1751; and Reporting Profit and Fee Statistics

b. Purpose/Explanation of Change(s): The revised language incorporates guidance provided by USD(A&T), DP/CPF, and previously published HQ AFMC/PKF memo dated 30 Mar 95. It restricts profit reporting citing Use Code 4 (DD1547, block 12) to Alternate Structured Approaches, and it establishes DD1547 preparation and reporting requirements for actions involving multiple contract types, time and materials actions, and change orders. Minor changes are also made to update references and to delete an obsolete office symbol. (Supersedes IPL 96-005, paragraph 1.f., Atch 6, dated 8 Dec 95)

ITEM 13.

a. Title: AFMCFARS 5316.307(i)(90) and 5352.216-9010 (Pages 16.3-1 and 52-30) -- Predetermined Cost Rates

b. Purpose/Explanation of Change(s): The new clause authorizes the contracting officer to incorporate into the schedule (per FAR 52.216-15(d)), the following: 1) predetermined rate agreements in effect on the date of the contract, 2) specific items treated as direct costs, and 3) any changes in items previously agreed to be direct costs. (Supersedes IPL 96-004, paragraph 1.c., Atch 3, dated 4 Dec 95)

ITEM 14.

a. Title: AFMCFARS 5316.307(b) and 5352.216-9001 (Pages 16.3-1 and 52-25) -- Payment of Fee

b. Purpose/Explanation of Change(s): The revised language adds fill-ins for the contract’s estimated cost and fee(s) and is inserted in Section B of solicitations and contracts when the clause at FAR 52.216-8 “Fixed Fee” or FAR 52.216-10 “Incentive Fee” is used. (Supersedes IPL 96-005, paragraph 1.g., Atch 7, dated 8 Dec 95)

ITEM 15.

a. Title: AFMCFARS 5316.505-90 and 5352.216-9011 (Pages 16-i, 16.5-1 and 52-30) -- Offices Authorized to Issue Decentralized Orders

b. Purpose/Explanation of Change(s): The new clause, Offices Authorized to Issue Decentralized Orders, notifies the contractor which offices are authorized to issue orders against contracts with decentralized ordering and precludes a letter or other media having to be sent after contract award. (Supersedes IPL 96-004, paragraph 1.d., Atch 4, dated 4 Dec 95)

ITEM 16.

a. Title: AFMCFARS 5316.703-91 (Pages 16-i, 16.7-2) -- Placement and Maintenance Responsibility for BOAs

b. Purpose/Explanation of Change(s): This was not a Lightning Bolt case. Presently ALCs manage BOAs under the rules established in AFLC regulations now rescinded. When AFLC and AFSC were merged, geographical boundaries and maintenance of BOAs were not addressed in AFMCFARS. This change formally establishes the placement and maintenance of BOAs. The ALCs will continue to issue BOAs based on geographical areas as prescribed in Figure 1. Relative to foreign contractors, each ALC shall treat their BOAs as “specialized” and within the management oversight of the ALC issuing the contract. Each ALC will establish its own criteria for issuance of BOAs, as well as length of the ordering period and timing to update BOAs. (Supersedes IPL 96-006, paragraph 1.b., Atch 2, dated 15 Dec 95)

ITEM 17.

a. Title: AFMCFARS 5317.7602-1, 5317.7602-90(g) and 5352.217-9021 (Pages 17.76-1 through 17.76-3, and 52-38) -- Contracts with Requirements for Provisioned Items

b. Purpose/Explanation of Change(s): DFARS 217.7602(a)-(i) requires the contracting officer to insert certain information and various requirements in contracts containing provisioning requirements. No DFARS level clause implements this direction. This addition provides AFMCFARS implementation. (Supersedes IPL 96-002, paragraph 1.a., Atch 1, dated 6 Nov 95)

ITEM 18.

a. Title: AFMCFARS 5317.9303(a) & (b) and 5352.217-9025 (Pages 17.93-1 and 52-40) -- Associate Contractor Agreements

b. Purpose/Explanation of Change(s): This new AFMCFARS clause is used when several contractors are working together on a Government project under separate contracts and need to have a basis for cooperation. AFMC policy requires the contracting officer to include a clause for this purpose and provides guidelines for writing the clause. Since several centers had similar clauses to implement this policy, AFMCFARS language was prepared. The new policy language will be used when contractors must cooperate, share resources, or otherwise jointly participate in the accomplishment of Government projects. (Supersedes IPL 96-005, paragraph 1.h., Atch 8, dated 8 Dec 95)

ITEM 19.

a. Title: AFMCFARS 5325.802-70(90) and 5352.225-9007 (Pages 25-i, 25.8-1 and 52-46) -- Contracts for Performance Outside the U.S. or Canada

b. Purpose/Explanation of Change(s): This addition authorizes various privileges for contractor personnel working in overseas theaters. It specifically identifies the type of base support provided to overseas contractors and the limits of the Governments obligations. Please Note: Clause number was previously 5352.225.9012 in IPL 96-005. It has been renumbered for sequence. (Supersedes IPL 96-005, paragraph 1.i., Atch 9, dated 8 Dec 95)

ITEM 20.

a. Title: AFMCFARS 5327.403 (Pages 27-i and 27.4-1) -- Rights in Data and Copyrights.

b. Purpose/Explanation of Change(s): DFARS 227.400 states that DoD activities shall use the guidance at Subparts 227.71 and 227.72, instead of the guidance in FAR Subpart 27.4. AFMCFARS Subpart 5327.403 had relied upon and had been numbered pursuant to Subpart 27.4. Some of the organizations mentioned in the AFMCFARS Subpart 5327.403 no longer exist. DFARS 252.227-7037 outlines procedures for challenging limited rights markings in sufficient detail so as to preclude the need for any supplementation. AFMCFARS 5327.403 was deleted in its entirety. (Supersedes IPL 96-001, dated 18 Oct 95)

ITEM 21.

a. Title: AFMCFARS 5328.101-3(b), 5328.102-3, 5352.228-9001 and 5352.228-9002 (Pages 28-i, 28.1-1 and 52-47) -- Bid or Proposal Guarantee and Performance & Payment Bonds

b. Purpose/Explanation of Change(s): This addition provides construction contract clauses for bid, performance and payment bonds. Coverage includes the amounts of bonding needed, when bonds are due, when the required amounts may be increased or decreased, and other conditions for use of bonds. (Supersedes IPL 96-005, paragraph 1.j., Atch 10, dated 8 Dec 95)

ITEM 22.

a. Title: AFMCFARS 5331.201-90 and 5352.231-9001 (Pages 31-i, 31.2-1 and 52-48) -- Segregation of Costs

b. Purpose/Explanation of Change(s): Segregation of costs will be needed on a contract when multiple contract line items (CLINS) are anticipated which will include: different contract types (fixed price, cost-reimbursement), different fund types (3600, 3010) or more than one type of funding source (USAF and FMS). (Supersedes IPL 96-004, paragraph 1.e., Atch 5, dated 4 Dec 95)

ITEM 23.

a. Title: AFMCFARS 5332.705-2(b) and 5352.232-9000 (Pages 32.7-5 and 52-48) -- Clauses for Limitation of Cost or Funds

b. Purpose/Explanation of Change(s): This addition ensures that when allotting funds to incrementally funded cost-reimbursement contracts the distinction as to which amounts are allotted for payment of costs and which are allotted for the payment of fee is expressed in the schedule of the contract. This implements FAR 52.232-22(b), Limitation of Funds, as well as FAR 52.216-8, Fixed Fee, which provides for fee withholding after 85% of the fee has been paid. No higher level coverage provides a means to specify cost/fee allotments in the contract schedule. Use of this language ensures that each allotment to a contract addresses the cost/fee distinction. (Supersedes IPL 96-006, paragraph 1.c., Atch 3, dated 15 Dec 95)

ITEM 24.

a. Title: AFMCFARS 5335.007-90(k) and 5352.235-9002 (Pages 35-i, 35.0-1 and

52-49) -- Key Positions and Minimum Qualifications

b. Purpose/Explanation of Change(s): This coverage was developed for use when the decision to contract is based to a large extent on the qualifications of the principal investigator and/or other key members of the research team. Please Note: Clause was previously numbered 5352.235-9004 in IPL 96-005. It was renumbered for sequence. (Supersedes IPL 96-005, paragraph l.k., Atch 11, dated 8 Dec 95)

ITEM 25.

a. Title: AFMCFARS 5335.016 (Page 35.0-2) -- Broad Agency Announcements

b. Purpose/Explanation of Change(s): Through error page 35.0-2 published in AFMCAC 96-1 was not correct. AFMCAC 95-2 dated 21 Jul 95 shows the correct page. This page is being replaced with AFMCAC 95-2 version. No additional changes have been made to this page since AFMCAC 95-2. (This was not published in any IPL.)

ITEM 26.

a. Title: AFMCFARS 5336.291 and 5352.236-9006 (Pages 36-i, 36.2-1 and 52-53) -- Contract Progress Schedules and Reports for Construction Contracts

b. Purpose/Explanation of Change(s): This clause implements the requirement of AFFARS 5336.291 to use AF Form 3064, Contract Progress Schedule, and AF Form 3065, Contract Progress Report in construction contracts. (Supersedes IPL 96-004, paragraph 1.f., Atch 6, dated 4 Dec 95)

ITEM 27.

a. Title: AFMCFARS 5336.9101 and 5352.236-9007 (Pages 36-i, 36-91-1 and

52-53) -- Model Unit Approval

b. Purpose/Explanation of Change(s): This addition provides a model unit clause for military family housing or similar construction projects. Use of the clause can prevent project delays and waste by allowing defects to be found before they are built into all units in a project. (Supersedes IPL

96-005, paragraph 1.l., Atch 12, dated 8 Dec 95)

ITEM 28.

a. Title: AFMCFARS 5337 and 5352.237-9002 through 5352.237-9008 (Pages 37-i, 37.91-1, 37.92-1 through 37.92-15 and 52-54 through 52-57) -- AFMC Base Services Acquisitions Contracting Techniques

b. Purpose/Explanation of Change(s): This is a minor change to Subpart 5337.91 eliminating reference to an outdated regulation. This also makes numerous changes of varying significance to Subpart 5337.92. Note: the AFMC FAR Council noted that Subpart 5332.92 contains more “how to” information than is normally included in the AFMCFARS. It was recommended that another document will be used for this information and it be removed from the AFMCFARS. This follow on effort will be completed during CY96. (Superseded by IPL 96-006, paragraph 1.d., Atch 4, dated 15 Dec 95)

ITEM 29.

a. Title: AFMCFARS 5337.110(a)(90) and 5352.237-9009 (Pages 37-i, 37.1-1 and 52-58) -- Site Visit Arrangement

b. Purpose/Explanation of Change(s): This language designates a place, time, and contact points for organized site visits for services solicitations. It can also be adapted and used when a site visit is needed for supply solicitations. Please Note: Clause was previously numbered 5352.237-9012 in IPL 96-004. It was renumbered for sequence. (Supersedes IPL 96-004, paragraph 1.g., Atch 7, dated 4 Dec 95)

ITEM 30.

a. Title: AFMCFARS 5339.001-90 and 5352.239-9000 through 5352.239-9011 (Pages 39-i, 39.0-1, 39.0-2 and 52-58 through 52-66) -- Acquisition of Information Resources Policy

b. Purpose/Explanation of Change(s): These additions provide guidance on the acquisition of Federal Information Processing (FIP) resources under the Brooks Act and the Nunn-Warner Amendment to the Brooks Act. (Supersedes IPL 96-006, paragraph 1.e., Atch 5, dated 15 Dec 95)

ITEM 31.

a. Title: AFMCFARS 5342.570 (Pages 42-i and 42.5-1) -- Postaward Orientation

b. Purpose/Explanation of Change(s): This addition incorporates some clarifying language at AFMCFARS 5342.570 on when to use DFARS 252.242-7000, Postaward Conference. Per FAR 42.502 and 42.503-1(a), Contracting Officers or Administrative Contracting Officers decide whether to hold a postaward orientation. Current DFARS 242.570 does not make clear that use of the clause is elective. In addition, Contracting Officers should only include the clause when there is reasonable likelihood that a postaward conference will be held. (Supersedes IPL 96-005, paragraph 1.m., Atch 13, dated 8 Dec 95)

ITEM 32.

a. Title: AFMCFARS 5343.201-90(b), 5343.204(c), 5343.204(92) 5343.205(91) & (92) and 5352.243-9002 (Pages 43.2-1 through 43.2-4 and 52-67) -- Issuance of Change Orders; Administration; and Identification of New Revised Amounts

b. Purpose/Explanation of Change(s): DFARS 217.7404-2 requires the insertion of a Not-to-Exceed (NTE) into DFARS 252.7027 (Price Ceiling). This addition provides the sole higher level guidance on establishing NTE agreements. The first addition (5343.201-90(b) provides that language on preservation of rights and funds obligation be included in unpriced change orders (depending on contract type), equitable adjustments (increase or decrease), and contracts fully or incrementally funded. The second (5343.204(c)) changes the dollar amount from $1,000,000 to $100,000 in the second sentence. The third (5343.204(92)) deletes most of the language because it is already required by DFARS 243.171. It further substitutes a requirement to identify contract modifications not yet distributed in supplemental agreements or unilateral modifications not issued sequentially. The fourth and fifth (5343.205(92) and 5352.243-9002 respectively) additions address NTE/Not Less Than Agreements for unpriced change orders depending on contract type. (Supersedes by IPL 96-004, paragraph 1.h., Atch 8, dated 4 Dec 95)

ITEM 33.

a. Title: AFMCFARS 5343.290-1(b), 5343.290-1(f)(1) & (2), 5343.290-1(g), (i) & (o) and 5352.243-9001 (Pages 43.2-4 through 43.2-6, and 52-67) -- Work Requests

b. Purpose/Explanation of Change(s): This addition sets out the procedures for ordering additional work in severable work requests. Additional changes to 5343.290-1 address funding policy for work requests. (Supersedes IPL

96-003, paragraph 1.a., Atch 1, dated 15 Nov 95)

ITEM 34.

a. Title: AFMCFARS 5345.106(b)(3), 5345.106(f)(2), 5345.302-6(e)(2), 5352.245-9001 and 5352.245-9002 (Pages 45-i, 45.1-1, 45.1-2, 45.3-1, 52-70 and 52-71) -- Government Property Clause and Required Government Property Clauses for Facilities Contracts

b. Purpose/Explanation of Change(s): The clauses at AFMCFARS 5352.245-9001, Title to Equipment, and AFMCFARS 5352.245-9002, Title to Equipment (Facilities Use), are to be used in R&D solicitations and contracts with educational institutions and nonprofit organizations when the contractor will buy equipment with contract funds and the unit acquisition cost is greater than $5000. (Supersedes IPL 96-005, paragraph 1.n., Atch 14, dated 8 Dec 95)

ITEM 35.

a. Title: AFMCFARS 5345.106(90)(h), 5345.205-90(d), 5345.302-6(90)(f) and 5352.245-9003 through 5352.245-9005 (Pages 45-i, 45.1-1, 45.2-1, 45.3-1, 52-71 and 52-72) -- Government Property Clause; Competitive Advantage; and Required Government Property Clauses for Facilities Contracts

b. Purpose/Explanation of Change(s): This change impacts government furnished property. AFMCFARS 5352.245-9003, “Contractor Responsibility for GFP” with prescription at 5345.106(90)(h), establishes and protects the government’s rights when delivered line items are accepted in place at the contractor’s facility and returned to the contractor as GFP to be incorporated into a separate deliverable item. AFMCFARS 5352.245-9004, “Elimination of Competitive Advantage in the Use of Government Production and Research Property,” with prescription at 5345.205-90(d), implements the guidance in FAR 45.201. AFMCFARS 5352.245-9005, “Authorization for the Acquisition or Fabrication of Facilities,” with prescription at 5345.302-6-90(f), standardizes the language included in solicitations and contracts to specify the facilities which are authorized for acquisition or fabrication under a contract other than a facilities contract. (Supersedes IPL 96-006, paragraph 1.f., Atch 6, dated 15 Dec 95)

ITEM 36.

a. Title: AFMCFARS 5345.106(90)(i) thru (l), 5345.310-92, 5352.245-9006, 5352.245-9007 and 5352.245-9015 through 5352.245-9017 (Pages 45-i, 45.1-1, 45.3-3, 52-72, 52-76 and 52-77) -- Government Property Clause and Providing Government Furnished Information

b. Purpose/Explanation of Change(s): This change adds language for Government Furnished Property lists as permitted by FAR 52.245-2, Government Property (Fixed-Price Contracts), 52.245-4, Government Furnished Property (Short Form), and 52.245-5, Government Property (Cost-Reimbursement, Time-and-Material, or Labor-Hour Contracts). Language is also included to specify Free on Board (F.O.B.) points for GFP, as permitted by FAR 52.247-55, F.O.B. Point for Delivery of Government Property. AFMCFARS 5352.245-9006 and 5352.245-9017 provides for listing Government Furnished Information to contractors. AFMCFARS 5352.245-9007 is for use when lots of materials are included in a contract line item price but are not fully consumed into the deliverable production items. It provides a means for the Government to recover that material already paid for under the contract but not otherwise deliverable to the Government. Please Note: In the IPL 96-006 AFMCFARS 5352,245-9006 had three Alternates. They should have all been separate clauses so Alternate I, Alternate II and Alternate III are now 5352.245-9015 through 5352.245.9017. (Supersedes IPL 96-006, paragraph 1.g., Atch 7, dated 15 Dec 95)

ITEM 37.

a. Title: AFMCFARS 5345.306-5(90), 5345.307-3(90) and 5352.245-9010 through 5352.245-9014 (Pages 45-i, 45.3-2, 52-73, 52-74 and 52-75) -- Government Furnished Tooling or Test Equipment

b. Purpose/Explanation of Change(s): This addition concerns special tooling and/or test equipment. AFMCFARS 5352.245-9010 provides for consideration during the evaluation of bids or proposals of costs associated with providing special tooling; AFMCFARS 5352.245-9011 allows contractors to use special tooling or test equipment, already accountable to them on one contract, on another contract; AFMCFARS 5352.245-9012 provides for the inclusion of costs associated with special test equipment in the contact price or target cost; AFMCFARS 5352.245-9013 gives the Government the option to provide items to contractors as GFP rather than pay the contractor to acquire or fabricate the same items; and AFMCFARS 5352.245-9014 provides a means to specify contract requirements for “master tooling” and other special requirements. (Supersedes IPL 96-006, paragraph 1.h., Atch 8, dated 15 Dec 95)

ITEM 38.

a. Title: AFMCFARS 5345.403-90, 5345.404-90, 5352.245-9008 and 5352.245-9009 (Pages 45-i, 45.4-1 and 52-73) -- Rental--Use and Charges Clause and Rent-Free

Use

b. Purpose/Explanation of Change(s): These additions provide Contracting Officer authorizations for use of any type Government owned property (including facilities) by contractors or their subs either on a rent-free or rental basis, as appropriate. Although FAR provides for these authorizations, there is no higher level implementing language. (Supersedes IPL 96-006, paragraph 1.i., Atch 9, dated 15 Dec 95)

ITEM 39.

a. Title: AFMCFARS 5346.401(90) and 5352.246-9002 (Pages 46-i, 46.4-1 and 52-78) -- Multiple Inspection & Acceptance

b. Purpose/Explanation of Change(s): This addition applies when it may be necessary to specify more than one inspection or acceptance point for a CLIN. (Supersedes IPL 96-003, paragraph 1.d., Atch 4, dated 15 Nov 95)

ITEM 40

a. Title: AFMCFARS 5346.407(90) and 5352.246-9001 (Pages 46-i, 46.4-1 through 46.4-3 and 52-78) -- Non-Conforming Supplies or Services

b. Purpose/Explanation of Change(s): This addition applies when it is necessary to accept contract items which do not conform to contract requirements. (Supersedes IPL 96-003, paragraph 1.d., Atch 4, dated

15 Nov 95)

ITEM 41.

a. Title: AFMCFARS 5346.770-92 (Page 46.7-3) -- Reporting the use of Warranties

b. Purpose/Explanation of Change: Air Force Manual 64-110 dated 13 May 1994 deleted the requirement for Weapon System Reporting (RCS: HAF AQC(SA)8701). AFMCFARS 5346.770-92 is deleted in its entirety. (This was not a Lightning Bolt case and was not published in any IPL.)

ITEM 42.

a. Title: AFMCFARS 5347.303-4(c)(90)(i) & (ii), 5352.247-9000 and 5352.247-9001 (Pages 47-i, 47.3-1 and 52-79) -- F.O.B Origin, Freight Prepaid

b. Purpose/Explanation of Change(s): This change adds language for contractor identification of F.O.B. point, 5347.303-4(c)(90)(ii) and 5352.247-9001 adds prescription and a clause when and for contractor identification of shipping weights and dimensions to the transportation officer to obtain the most economical shipping method and rates. (Supersedes IPL 96-004, paragraph 1.i., Atch 9, dated 4 Dec 95)

ITEM 43.

a. Title: AFMCFARS 5352.215-9009 (Pages 52-16 and 52-17) -- Submission of Certified Cost or Pricing Data

b. Purpose/Explanation of Change(s): Through error the old clause dated Jul 1992 was included in AFMCAC 96-1. This clause was revised in AFMCAC 95-2 with a new date of Oct 1994. This change substitutes the clause dated Oct 1994 for the clause dated Jul 1992.

ITEM 44.

a. Title: AFMCFARS 5390.90 and 5352.290-9000 through 5352.290-9013 (Pages 90-i, 90.90-1, 90.90-2, and 52-80 through 52-86) -- Acquisition of Petroleum and Propellants (Aircraft & Missiles)

b. Purpose/Explanation of Change(s): These changes add language for all competitive and sole source acquisitions of petroleum and propellants. Please Note: Corrected clause numbers 5390.290-9002 and 5390.290-9003 to be 5352.290-9002 and 5352.290-9003. (Supersedes IPL 96-002, paragraph 1.c.,

Atch 3, dated 5 Nov 95)

ITEM 45.

a. Title: AFMCFARS 5392.103(h) & (i), 5352.292-9010 and 5352.292-9011 (Pages 92.1-2 and 52-97) -- End Items Beyond Economical Repair and Delay of Aircraft Input

b. Purpose/Explanation of Change(s): 5352.292-9010 defines economically reparable end items and provides guidance to the contractor regarding action when an item is not economically reparable. 5352.292-9011 allows the Governemnt to slow the number of aircraft input for contractor maintenance if the aircraft/outputs are delayed for any reason. (Supersedes IPL 96-005, paragraph 1.o. and p., Atchs 15 and 16 dated 8 Dec 95)

ITEM 46.

a. Title: AFMCFARS 5392.202 and 5352.292-9009 (Pages 92.2-1 and 52-97) -- Evaluation of Over and Above Work

b. Purpose/Explanation of Change(s): AFMCFARS 5392.202 requires the contracting officer to insert the evaluation methodology in solicitations which contain provisions for over-and-above work requirements. In addition, the limitations contained in AFMCFARS 5392.203 are unnecessary, since there has been no known instances of field requests to exceed the 50 percent threshold. As a matter of normal contracting practices, contracting officers should not place excessive over-and-above requirements on fixed-price contracts. If such occasion arises, another contract type should be considered. (Supersedes IPL 96-002, paragragh 1.b., Atch 2, dated 6 Nov 95)

ITEM 47.

a. Title: AFMCFARS 5392.203-90(a) through (c) and 5352.292-9012 through 5352.292-9014 (Pages 92-i, 92.2-1 and 52-98) -- Evaluation of Offers

b. Purpose/Explanation of Change(s): This change assists in the evaluation of offers for maintenance, overhaul and modification in indefinite quantity and requirements solicitations. AFMCFARS 5352.292-9012 notifies offerors of the quantity to be used for evaluation when a Best Estimated Quantity (BEQ) will be employed. AFMCFARS 5352.292-9013 assists in the evaluation of offers for maintenance, overhaul, and modification in indefinite quantity and requirements solicitations when the cost of relocating government furnished property from the incumbent contractor facilities to another source is to be evaluated. The provision notifies offerors of the cost factor to be used for evaluation of relocation of the government furnished property. AFMCFARS 5352.292-9014 assists in the evaluation of offers for maintenance, overhaul and modification in indefinite quantity and requirements solicitations when assets may generate from multiple locations and the cost of transportation is to be evaluated. The provision notifies offerors that transportation will be evaluated based on probable points of generation from the field and return to the point of generation and/or supply point. (Supersedes IPL 96-006, paragraph 1.j., Atch 10, dated 15 Dec 95)

ITEM 48

a. Title: AFMCFARS 5393, 5352.293-9000 through 5352.293-9003 (Pages 93-i, 93.0-1 through 93.0-3, and 99 through 101) -- Foreign Disclosure Reviews

b. Purpose/Explanation of Change(s): Foreign Disclosure is moved from Part 25 (5325.91) to its own AFMCFARS part, Part 5393. The primary areas of new material are subparagraphs 5393.003(a)(1), (e), (f), 5393.004, and the provisions and clauses. Since this is a new part there is no previous AFMCFARS 5393 to be replaced. Other areas were rewritten in an effort to clarify the material. (Supersedes IPL 96-006, paragraph 1.k., Atch 11, dated 15 Dec 95)

3. Filing Instructions:

Page Insert Changes:

Remove Insert

Foreward v thru vii Foreward v thru vii

1.9-1 thru 1.9-4 1.9-1 thru 1.9-4

4-i thru 4-ii 4-i thru 4-ii

4.4-1

5.2-1 5.2-1

5.4-1 5.4-1

9-i 9-i

9.2-3 thru 9.2-4 9.2-3 thru 9.2-4

9.3-1

14.3-1 14.3-1

15-i thru 15-ii 15-i thru 15-ii

15.4-7 thru 15.4-8 15.4-7 thru 15.4-8

15.6-9 thru 15.6-11 15.6-9 thru 15.6-11

15.8-1 thru 15.8-2 15.8-1 thru 15.8-2

15.9-1 thru 15.9-2 15.9-1 thru 15.9-3

16-i 16-i

16.3-1 16.3-1

16.5-1

16.7-1 16.7-1 thru 16.7-2

17.76-1 thru 17.76-2 17.76-1 thru 17.76-3

17.93-1 thru 17.93-2 17.93-1 thru 17.93-2

25-i 25-i 25.8-1

25.91-1 thru 25.91-2 25.91-1

27-i 27-i

27.4-1 thru 27.4-2 27.4-1

28-i 28-i

28.1-1 28.1-1

31-i 31-i

31.2-1

32.7-5 32.7-5

35-i 35-i

35.0-1 thru 35.0-2 35.0-1 thru 35.0-2

36-i 36-i

36.2-1 36.2-1

36.90-1 36.90-1

36.91-1

37-i 37-i

37.1-1

37.91-1 37.91-1

37.92-1 thru 37.92-11 37.92-1 thru 37.92-15

Page Insert Changes:

Remove Insert

39-i

39.0-1 thru 39.0-2

42-i 42-i

42.5-1 42.5-1

43.2-1 thru 43.2-5 43.2-1 thru 43.2-6

45-i 45-i thru 45-ii

45.1-1 thru 45.1-2 45.1-1 thru 45.1-2

45.2-1

45.3-1 thru 45.3-2 45.3-1 thru 45.3-3

45.4-1

46-i 46-i

46.4-1 46.4-1 thru 46.4-3

46.7-3 46.7-3

47-i 47-i

47.3-1 thru 47.3-3 47.3-1 thru 47.3-2

52-i thru 52-iii 52-i thru 52-v

52-1 thru 52-72 52-1 thru 52-101

90-i

90.90-1 thru 90.90-2

92-i 92-i

92.1-1 thru 92.1-2 92.1-1 thru 92.1-2

92.2-1 92.2-1

93-i

93.0-1 thru 93.0-3

AFMCAC 96-2 15 February 1996

LIST OF EFFECTIVE PAGES

Dates of issue for original and change pages are:

Change Ref Date Change Ref Date

Original 0 1 July 1992 94-4 6 31 July 1994

93-001 1 15 January 1993 94-5 7 30 September 1994

93-002 2 15 May 1993 95-1 8 31 December 1994

94-1 3 30 November 1993 95-2 9 21 July 1995

94-2 4 31 January 1994 96-1 10 31 October 1995

94-3 5 30 April 1994 96-2 11 15 February 1996

FWD i to ii 0

iii to iv 9

v to vii 11

5301 1-i 9

1-ii 9

1.1-1 0

1.2-1 to 2-5 9

1.3-1 0

1.3-2 10

1.4-1 5

1.5-1 0

1.6-1 8

1.6-2 9

1.6-3 8

1.6-4 to 6-5 10

1.6-6 to 6-7 8

1.6-8 5

1.9-1 7

1.9-2 to 1.9-3 11

1.9-4 10

1.9-5 to 9.6 7

5302 2-i 0

2.1-1 9

5303 3-i 9

3.1-1 to 1-2 0

3.8-1 9

5304 4-i 11

4-ii 3

4.1-1 0

4.4-1 11

4.6-1 to 6-2 0

4.6-3 10

4.8-1 0

4.70-1 0

4.71-1 and 71-3 0

4.71-2 10

4.90-1 to 90-2 0

4.91-1 0

5305 5-i 10

5.0-1 0

5.1-1 3

5.2-1 11

5.3-1 Deleted

5.4-1 11

5306 6-i 0

6.2-1 0

6.3-1 5

6.3-2 10

6.3-3 and 3-4 5

6.3-5 to 3-6 0

6.3-7 1

5307 7-i 0

7.1-1 to 1-5 10

7.1-6 to 1-8 Deleted

7.1-8a 0

7.2-1 to 2-2 0

7.3-1 10

5308 8i 8

8.8-1 0

5309 9-i 11

9.1-1 0

9.2-1 to 9.2-3 1

9.2-4 11

9.3-1 11

9.4-1 to 4-2 0

9.5-1 0

5310 10-i 0

10.0-1 0

5311 N/A

5312 12-i 4

12.1-1 4

12.3-1 0

5313 13-i 10

13.1-1 to 1-4 7

13.5-1 to 5-2 0

5314 14-i 0

14.2-1 3

14.3-1 11

14.4-1 0

5315 15-i 11

15-ii 11

15.4-1 to 4-4 9

15.4-5 10

15.4-6 9

15.4-7 11

15.4-8 11

15.5-1 to 5-4 4

15.6-1 to 6-3 10

15.6-4 9

15.6-5 10

15.6-6 7

15.6-7 7

15.6-8 and 6-9 7

15.6-10 to 6-11 11

15.7-1 to 7-2 0

15.8-1 10

15.8-2 11

15.8-3 to 8-4 0

15.8-5 7

15.8-6 10

15.8-7 to 8-10 3

15.8-11 8

15.8-12 3

15.8-13 to 8-16 8

15.9-1 to 9-3 11

15.10-1 5

15.11-1 to 11-2 0

5316 16-i 11

16.2-1 to 2-2 0

16.3-1 11

16.4-1 to 4-3 9

16.5-1 11

16.6-1 0

16.7-1 0

16.7-2 11

5317 17-i 6

17-ii 10

17.1-1 0

17.1-2 2

17.1-3 0

17.2-1 3

17.74-1 10

17.74-2 to 74-4 9

17.75-1 to 75-4 0

17.76-1 11

17.76-2 8

17.76-3 11

17.91-1 to 91-3 0

17.92-1 10

17.92-2 to 92-5Deleted

17.93-1 11

17.93-2 0

17.94-1 to 94-3 10

17.96-1 to 96-2 3

5318 N/A

5319 19-i 0

19.2-1 0

19.3-1 0

19.5-1 0

19.7-1 0

19.8-1 0

5320 N/A

5321 N/A

5322 22-i 0

22.1-1 0

5323 23-i 0

23.3-1 0

23.9-1 10

5324 N/A

5325 25-i 11

25.1-1 0

25.3-1 8

25.8-1 11

25.9-1 10

25.70-1 0

25.73-1 0

25.91-1 11

25.91-2 Deleted

25.92-1 0

5326 N/A

5327 27-i 11

27.3-1 0

27.4-1 11

27.4-2 Deleted

27.6-1 0

5328 28-i 11

28.1-1 11

28.3-1 0

5329 N/A

5330 N/A

5331 31-i 11

31.1-1 1

31.2-1 11

5332 32-i 9

32.7-1 3

32.7-2 to 7-3 0

32.7-4 9

32.7-5 11

5333 33-i 0

33.1-1 1

33.1-2 2

33.1-3 0

5334 34-i 0

34.5-1 3

5335 35-i 11

35.0-1 11

35.0-2 10

35.0-3 to 0-5 9

35.0-6 to 0-7 0

5336 36-i 11

36.2-1 11

36.6-1 10

36.90-1 11

36.90-2 to 90-3Deleted

36.91-1 11

5337 37-i 11

37.1-1 11

37.91-1 11

37.92-1 to 92-15 11

5338 N/A

5339 39-i 11

39.0-1 to 0-2 11

5340 N/A

5341 N/A

5342 42-i 11

42.2-1 to 2-2 0

42.5-1 11

42.71-1 7

42.71-2 10

5343 43-i 10

43.1-1 4

43.2-1 to 2-6 11

5344 44-i 0

44.2-1 1

44.3-1 to 3-3 0

5345 45-i to ii 11

45.1-1 to 1-2 11

45.2-1 11

45.3-1 to 3-3 11

45.4-1 11

45.6-1 2

45.6-2 3

45.6-3 10

45.6-4 0

45.70-1 0

5346 46-i 11

46.2-1 0

46.3-1 9

46.4-1 to 4-3 11

46.5-1 0

46.7-1 to 7-2 8

46.7-3 11

5347 47-i 11

47.3-1 11

47.3-2 10

47.3-3 0

5348 N/A

5349 49-i 0

49.1-1 to 1-3 0

49.4-1 to 4-4 0

49.70-1 0

5350 50-i 0

50.3-1 1

5351 51-i 0

51.1-1 0

51.2-1 0

5352

52-i to 52-v 11

52-1 to 52-101 11

5353 53-i 0

53-1 10

53-2 to 53-3 7

53-4 2

5390 90-i 11

90.90-1 to 90-2 11

5391 91-i 0

91.1-1 0

91.2-1 to 91.2-8 0

5392 92-i 11

92.0-1 0

92.1-1 7

92.1-2 11

92.2-1 11

92.3-1 to 3-2 0

92.4-1 to 4-4 0

92.5-1 to 5-4 0

5393 93-i 11

93.0-1 to 0-3 11

APP D-1 0

APP AA-1 to -16 9

APP BB-1 to 1a 1

APP BB-2 to 3 0

APP BB-4 2

APP BB-5 to 6 0

APP BB-7 1

APP BB-8 to 35 0

AFMCAC 96-2 15 February 1996 1.9-2

5301.9007 Solicitation Review.

(a)(90) A complete and integrated draft RFP (DRFP) may be submitted to the reviewing authority. The reviewing authority's review of the DRFP and appropriate resolution of review comments by the contracting officer, shall normally satisfy the requirements of AFFARS 5301.9007(a) and a review of additional DRFPs and/or the final RFP will not be accomplished. However, if significant changes (e.g., program redirection, change in scope of work, change in contract type, change in acquisition strategy) are made to the DRFP, a review of the final RFP by the reviewing authority will be required.

(91) If a Solicitation Review Board (SRB) is convened pursuant to AFMCI 64-109, participation on the SRB by a HQ AFMC/PKA reviewer shall normally satisfy the HQ AFMC/PK solicitation review requirement. The HQ AFMC/PKA reviewer shall advise the contracting officer at the conclusion of the SRB if changes resulting from the SRB require headquarters' review of the final RFP.

(92) The solicitation phase of the following special contracting methods are exempt from the AFFARS 5301.9007 requirement:

(i) Broad Agency Announcements (BAAs) and Program Research and Development Announcements (PRDAs);

(ii) Small Business Innovative Research program procurements; and (iii) Fast Track and High Gear Contracting (Subpart 5317.91).

(b) The supporting file consists of a copy of the approved Acquisition Plan, with a copy of the approved J&A and/or approved Source Selection Plan as applicable. These documents, together with a copy of the DRFP/RFP, will be retained in the HQ AFMC/PKA clearance office.

5301.9008 Content of the Request for Business Clearance (RBC).

(b)(2) If there is adequate price competition, and clearance is requested to award without discussions, a Price Competition Memorandum (PCM) shall satisfy the AFFARS requirement. If low price is the only specified factor to be considered for award, the abstract may be used in lieu of a PCM.

(3) If the proposed contract or contractual document is not available at the time of business clearance as required by AFFARS 5301.9008(b)(3), coordinate with the reviewing authority's staff to determine if the business clearance can proceed without the document.

(90) For contract actions where HQ AFMC/PK is the BCRA, when the acquisition is a contract modification, provide a "conformed working copy" of the contract, up to the modification submitted for approval. A "conformed working copy" of the contract is a copy that incorporates all modifications to the contract and cross references the modification number.

(91) For contract actions where HQ AFMC/PK is the BCRA, a Business Clearance Retention file, consisting of a separate copy of the following "related documents" required by AFFARS 5301.9008(b), shall accompany the RBC:

(1) The final RFP (with amendments), unless it was reviewed by (and a copy furnished) headquarters under AFFARS 5301.9007, as supplemented;

(2) The preliminary PNM (PCM or abstract, as applicable, if required);

(3) The proposed BAFO request (as applicable);

(4) The business clearance session charts (as applicable); and

(5) The model contract or contract modification (as applicable).

(92) Ensure that the request for business clearance documentation (e.g., briefing charts, paragraph 6 of the business clearance format, or contract file) contains budget/funding information on the availability of sufficient

AFMCAC 96-2 15 February 1996 1.9-3

funds to cover the Government’s anticipated present and contingent liabilities for the contract action under review.

5301.9009 Business clearance procedures for competitive and noncompetitive acquisitions.

(b)(90) When HQ AFMC/PK is the Business Clearance Reviewing Authority (BCRA), HQ AFMC/PKA shall assist in this function. References to "the reviewing authority's staff" mean the HQ AFMC/PKA reviewers. The reviewing authority's staff will review the RBC and supporting source documents. The staff reviewer will discuss with the contracting officer any questions or any RBC elements that do not appear to meet applicable standards (see AFFARS 5301.9009(c)(2)). The purpose of the review is to complete the reviewer's understanding of the acquisition, resolve all questions, and to ensure all RBC elements meet standards.

(91) When requesting on-site business clearance review support, provide HQ AFMC/PKA as much notice as possible (at least 10 working days is desirable).

(c)(1) When HQ AFMC/PK is the BCRA, the BCRA and HQ AFMC/PKA reviewers may seek advice from HQ AFMC/JA during business clearance review activity as necessary to ensure the contract action and documentation are consistent with laws, regulations, and policies.

5301.9011 Content of the Request for Contract Clearance (RCC).

(b)(1) If a copy of the negotiated contract document is provided instead of the original, it will be an accurate and complete duplicate of the original document.

(2) For procurements where there is adequate price competition, a Price Competition Memorandum (PCM) shall serve the same purpose as a Final Price Negotiation Memorandum. If low price is the only specified factor to be considered for award, the abstract may be used in lieu of a PCM.

(90) For contract actions requiring contract clearance by HQ AFMC/PK, when the acquisition is a contract modification, provide a "conformed working copy" of the contract, up to the modification submitted for approval. A "conformed working copy" of the contract is a copy that incorporates all modifications to the contract and cross references the modification number.

(91) For contract actions requiring contract clearance by HQ AFMC/PK, a Contract Clearance Retention file, consisting of a separate copy of the following "related documents" required by AFFARS 5301.9011(b), shall accompany the RCC:

(1) The contract or contract modification; and

(2) The final PNM (PCM or abstract, as applicable).

5301.9012 Contract clearance procedures.

5301.9012-1 Competitive acquisitions.

(a) The contracting officer shall ensure that AFFARS 5301.9005 standards are met before signing the contractual document in those instances where a formal contract clearance is not required.

AFMCAC 96-1 31 October 1995 1.9-4

5301.9012-3 Contract clearance approving authority.

(a)(1) When HQ AFMC/PK is the CCAA, the HQ AFMC/PKA reviewers shall assist in this function by reviewing the RCC and supporting source documents and making recommendations to the CCAA. In addition, the CCAA and HQ AFMC/PKA reviewers may seek advice from HQ AFMC/JA during contract clearance as

necessary to ensure the contact action and documentation are consistent with laws, regulations, and policies.

5301.9090 AFMC Clearance Process for Other Contracting.

5301.9090-1 AFFARS applicability. In addition to the AFFARS 5301.9000(b) requirement to use AFFARS 5301.9001 (Policy), AFFARS 5301.9002 (Definitions), AFFARS 5301.9004 and 5301.9005 (Standards), and AFFARS 5301.9006-3 and 5301.9006-4 (Application), as supplemented, for Other Contracting, AFFARS 5301.9006-8 (Post-award Review), as supplemented, and AFFARS coverage as noted in 5301.9090-3 and 5301.9090-4 below also applies to AFMC Other Contracting.

5301.9090-2 RESERVED.

5301.9090-3 Reviewing and approving authorities.

(a) Table II prescribes RFP review responsibilities, business clearance reviewing and approving authorities, and contract clearance approving authority by dollar value of the action. The Center Commander (Center/CC), with advice and assistance from the Senior Center Contracting Official (SCCO),

(1) will establish reviewing and approving authorities for solicitations and business/contract clearance actions less than $15,000,000;

(2) may delegate BCAA to the Laboratory Commander and RFP review/BCRA/CCAA to the Senior Laboratory Contracting Official for science and technology/laboratory contract actions equal to or greater than $15,000,000 but less than $50,000,000.

(3) may delegate BCAA to SMC Det 10/CC and RFP review/BCRA/CCAA to SMC Det 10/PK for SMC Det 10 contract actions equal to or greater than $15,000,000 but less than $50,000,000.

(4) may delegate reviewing and approving authorities for Standard Systems Center (SSC) contract actions equal to or greater than $15,000,000, but less than $25,000,000, to SSC/PK.

(b) For AFFARS Appendix AA and Appendix BB actions, AFFARS 5301.9006-7 regarding SSA and BCAA roles and responsibilities applies to AFMC Other Contracting.

(c) When authorities are established or delegated below the Center/CC or SCCO level, they shall be vested only in individuals with substantial acquisition experience, education, and training.

(d) Whenever possible, delegations will be incorporated into the local FAR supplement.

5301.9090-4 Clearance procedures.

(a) The Center Commander will utilize the clearance procedures set forth in AFFARS 5301.9007 through 5301.9012, as supplemented, and be supported by HQ AFMC/PK for business clearance reviews and contract clearance approvals on the highest dollar value threshold as specified in Table II.

(b) The Center Commander, through the Senior Center Contracting Official, shall establish appropriate internal business clearance and contract clearance

AFMCAC 96-2 15 February 1996 4-i

PART 5304--ADMINISTRATIVE MATTERS

SUBPART 5304.1--CONTRACT EXECUTION

Paragraph Title Page

5304.190 Costs incurred prior to contract award. 4.1-1

SUBPART 5304.4--SAFEGUARDING CLASSIFIED

INFORMATION WITHIN INDUSTRY

5304.404-90 Contract clauses 4.4-1

SUBPART 5304.6--CONTRACT REPORTING

5304.670-90 Processing of DD Form 350 and DD Form 1057. 4.6-1

5304.671 Individual Contracting Action Report (DD Form 350). 4.6-1

5304.671-1 Scope. 4.6-1

5304.671-3 Applicability and coverage. 4.6-1

5304.671-4 Due date and distribution. 4.6-1

5304.672 Monthly contracting summary of actions $25,000 4.6-2

or less (DD Form 1057). 4.6-2

5304.672-3 Due date and distribution. 4.6-2

5304.690 Operational contracting reports. 4.6-2

5304.691 Procurement Management System (PMS). 4.6-2

5304.691-2 Contract closeout. 4.6-3

SUBPART 5304.8--CONTRACT FILES

5304.802 Contract files. 4.8-1

5304.802-70 Use of standard file folders for drawer and 4.8-1

shelf filing.

5304.803 Contents of contract files. 4.8-1

5304.804 Closeout of contract files. 4.8-1

5304.804-4 Physically completed contract. 4.8-1

SUBPART 5304.70--UNIFORM PROCUREMENT INSTRUMENT

IDENTIFICATION NUMBERS (PIIN)

5304.7003 Basic PIIN. 4.70-1

SUBPART 5304.71--UNIFORM CONTRACT LINE ITEM

NUMBERING SYSTEM

5304.7103 Contract line items. 4.71-1

5304.7103-1 Criteria for establishing. 4.71-1

5304.7105 Contract exhibits and attachments. 4.71-1

5304.7106 Contract modifications. 4.71-1

5304.7107 Contract Accounting Classification Reference 4.71-1

Number (ACRN).

AFMCAC 96-2 15 February 1996 4.4-1

PART 5304--ADMINISTRATIVE MATTERS

SUBPART 5304.4--SAFEGUARDING CLASSIFIED

INFORMATION WITHIN INDUSTRY

5304.404-90 Contract Clauses

The CO shall insert the clause substantially as set forth at 5352.204-9001, Classified Effort, in Section I of classified orders under a Basic Ordering Agreement (BOA) when the BOA contains a DD Form 254 and it is applicable to the order.

AFMCAC 96-2 15 February 1996 5.2-1

PART 5305--PUBLICIZING CONTRACT ACTIONS

SUBPART 5305.2--SYNOPSIS OF PROPOSED CONTRACT ACTIONS

5305.201 General.

(b) Deleted.

(c) Use of sources sought synopsis is encouraged as early as possible in the acquisition process. Potentially competitive requirements susceptible to participation by small business, small disadvantaged business (SDB), or historically black colleges and universities (HBCUs)/minority institutions (MIs) are particularly appropriate for sources sought synopsis. All potential Section 8(a) requirements will be coordinated with the Deputy for Small Business to determine the need for synopsis and for any further coordinations required with the Small Business Administration (SBA). As authorized by FAR 5.502, supplemental advertisements in appropriate publications are encouraged for potential Section 8(a) requirements, SDB setasides and HBCU/MIs setasides.

(91) If a proposed acquisition includes the possibility that an option will be part of the award, a notification will be included in the synopsis. Whenever possible, the estimated option portion will be stated in terms of a period of time, number of units, a percentage of the basic requirement, or other appropriate unit of measure. The estimated value of the option(s) will be considered when determining whether the acquisition meets the $25,000 threshold for synopsizing. When an option will be exercised without a formal solicitation, synopsizing the action as a proposed acquisition is not required, provided that the option quantity or period was included in the synopsis of proposed acquisition of the basic contract.

(92) Advance Synopsis Procedures.

(1) The office responsible for PR/MIPR control at each Logistics Center shall forward an initial copy of all Purchase Requests (PRs) in excess of $25,000 to the Senior Center Contracting Official for coordination.

5305.207 Preparation and transmittal of synopsis.

(a) Transmittal.

(90) Transmit synopses to the Commerce Business Daily (CBD) electronically, via AUTODIN, when possible. This may be accomplished using ACPS or other automated methods.

AFMCAC 96-2 15 February 1996 5.4-1

PART 5305--PUBLICIZING CONTRACT ACTIONS

SUBPART 5305.4--RELEASE OF INFORMATION

5305.404 Release of long range acquisition estimates.

Use of Long Range Acquisition Estimates (LRAEs) is optional. If used, each activity will establish their local procedures. The Small Business Office will work with activity commanders to assure that requirement activities provide LRAEs for selected contracts expected to be awarded in each fiscal year. When available, include planned requirements beyond the next fiscal year. LRAEs will include equipment, supplies, and services that can reasonably be expected to be purchased as a lot from one vendor. The items should be competitive when contract action is initiated.

5305.4041 Release procedures.

(1) If used, the Deputy for Small Business will take the necessary planning actions to make sure that requirements activities provide their LRAEs to the Deputy for Small Business by 1 September of each fiscal year.

AFMCAC 96-2 15 February 1996 9-i

PART 5309--CONTRACTOR QUALIFICATIONS

SUBPART 5309.1--RESPONSIBLE PROSPECTIVE CONTRACTORS

Paragraph Title Page

5309.103 Policy. 9.1-1

5309.105 Procedures. 9.1-1

5309.106-4 Reports. 9.1-1

SUBPART 5309.2--QUALIFICATION REQUIREMENTS

5309.200 Scope of subpart. 9.2-1

5309.201-90 Definitions. 9.2-1

5309.202 Policy. 9.2-1

5309.203 QPL's, QML's, and QBL's. 9.2-3

5309.204 Responsibilities for establishment of a 9.2-3

specification requirement.

5309.205 Opportunity for qualification before award. 9.2-3

5309.206 Acquisitions subject to qualifications requirements. 9.2-3

5309.206-1 General 9.2-3

SUBPART 5309.3--FIRST ARTICLE TESTING AND APPROVAL

5309.308-1 Testing performed by the contractor. 9.3-1

5309.308-2 Testing performed by the government 9.3-1

SUBPART 5309.4--DEBARMENT, SUSPENSION, AND INELIGIBILITY

5309.405 Effect of listing. 9.4-1

5309.405-1(90)Continuation of current contracts. 9.4-1

5309.406-3 Procedures. 9.4-2

SUBPART 5309.5--ORGANIZATIONAL AND CONSULTANT

CONFLICTS OF INTEREST

5309.504 Contracting officer responsibilities. 9.5-1

5309-505-1 Providing systems engineering and technical 9.5-1

direction.

5309.506 Procedures. 9.5-1

5309.507 Solicitation provision and contract clause. 9.5-1

5309.507-1 Solicitation provision. 9.5-1

5309.507-2 Contract clause. 9.5-1

AFMCAC 96-2 15 February 1996 9.2-4

establishment of the requirement is responsible for the justification in FAR 9-202(a) above. The requirements of FAR 9.202(a) apply in the instance of QPL, QML or QBL without regard to the date established. See discussion at 5309.203(90).

(b) For the purpose of FAR 9.206-1(b), the designee of the head of the agency is the Center Commander. Their signature on the Purchase Request when required shall constitute approval of the emergency waiver.

(d)(90) The contracting officer may insert a provision substantially the same as 5352.209-9005, Interchangeable Part Number(s)/National Stock Number(s), in Section K of solicitations when alternate NSN/Part Numbers are solicited/anticipated.

(91) When it is necessary to issue a contract with non-cataloged items, the contracting officer shall insert the clause at 5352.209-9006, Assignment of National Stock Numbers (NSNs), in Section D of solicitations and contracts, to properly notify the contractor that assignment of a NSN is a prerequisite for shipment of items going to stock.

(e)(1) Include information relative to the qualification requirements in the synopsis required by FAR 5.101. This information will consist of Note A. and either Note B., C., or D. below.

Note A: Sources must be qualified prior to being considered for award. The solicitation will contain instructions for obtaining further information on this requirement.

Note B: The qualification requirements for this item were established prior to 19 Oct 1984 and the requirements of FAR 9.202(a) do not apply.

Note C: The requirements of FAR 9.202(a)(1)(ii)-(a)(4) have been waived because it is unreasonable to comply at this time.

Note D: The requirements of FAR 9.202(a) have been completed and copies of the qualification requirements and standards may be obtained as described in the solicitation.

AFMCAC 96-2 15 February 1996 9.3-1

PART 5309--CONTRACTOR QUALIFICATIONS

5309.3--FIRST ARTICLE TESTING AND APPROVAL

5309.308-1 Testing performed by the contractor.

(b)(3)(90) To identify the material the contractor is authorized to purchase before first article approval, the contracting officer may use, with the clause at FAR 52.209-3 Alternate II, a clause substantially the same as the clause at 5352.209-9007.

5309.308-2 Testing performed by the Government.

(b)(3)(90) To identify the material the contractor is authorized to purchase before first article approval, the contracting officer may use, with the clause FAR 52.209-4 Alternate II, a clause substantially the same as the clause at 5352.209-9007.

AFMCAC 96-2 15 February 1996 14.3-1

PART 5314SEALED BIDDING

SUBPART 5314.3SUBMISSION OF BIDS

5314.301 Responsiveness of bids.

(d)(90) Insert the provision at 5352.2149000, Letter Response to Solicitations, in Section L of all IFBs.

(91) The Contracting Officer shall insert a provision substantially the same as 5352.214-9001, Award- All or None Basis, in Section M of solicitations when contract award will be based on a proposal responding to all items included in the solicitation. This provision is suitable for either IFBs using FAR 52.214-10 or for construction contract IFBs using FAR 52.214-19.

5314.304 Late bids, late modifications of bids, or late withdrawal of bids.

5314.3044 Records.

(90) See guidance at 5315.412(90).

AFMCAC 96-2 15 February 1996 15-i

PART 5315--CONTRACTING BY NEGOTIATION

SUBPART 5315.4--SOLICITATION AND RECEIPT OF

PROPOSALS AND QUOTATIONS

Paragraph Title Page

5315.405-90 Use of Draft Request for Proposals (DRFPs). 15.4-1

5315.406 Preparing Requests For Proposals (RFPs) and 15.4-4

Requests For Quotations (RFQs).

5315.406-1 Uniform contract format. 15.4-4

5315.406-5 Part IV representations and instructions. 15.4-5

5315.407 Solicitation provisions. 15.4-7

5315.408 Issuing solicitations. 15.4-7

5315.409 Pre-proposal conferences. 15.4-7

5315.410 Amendment of solicitations before closing date. 15.4-7

5315.412 Late proposals and modifications. 15.4-8

SUBPART 5315.5--UNSOLICITED PROPOSALS

5315.501 Definitions. 15.5-1

5315.503 General. 15.5-1

5315.504 Advance guidance. 15.5-1

5315.506 Agency procedures. 15.5-1

5315.506-1 Receipt and initial review. 15.5-2

5315.506-2 Evaluation. 15.5-2

5315.507 Contracting methods. 15.5-3

5315.509 Limited use of data. 15.5-4

SUBPART 5315.6--SOURCE SELECTION

5315.604 Responsibilities. 15.6-1

5315.605-90 AFMC blue ribbon contractor program. 15.6-1

5315.605-91 Phase-in costs. 15.6-10

5315.607 Disclosure of mistakes before award. 15.6-10

5315.608 Proposal evaluation. 15.6-10

5315.609 Competitive range. 15.6-10

5315.611 Best and final offers. 15.6-11

5315.614-90 Incorporation of contractor technical proposal. 15.6-11

SUBPART 5315.7--MAKE-OR-BUY PROGRAMS

5315.705 Solicitation requirements. 15.7-1

5315.706 Evaluation, negotiation, and agreement. 15.7-1

SUBPART 5315.8--PRICE NEGOTIATION

5315.802 Policy. 15.8-1

5315.803 General. 15.8-1

5315.804-3 Exemptions from or waiver of submission of 15.8-1

certified cost or pricing data.

5315.804-6 Procedural requirements. 15.8-2

5315.804-7 Defective cost or pricing data. 15.8-3

5315.805 Proposal analysis. 15.8-5

AFMCAC 96-2 15 February 1996 15-ii

Paragraph Title Page

5315.805-1 General 15.8-5

5315.805-2 Price analysis 15.8-6

5315.805-5 Field pricing support personnel 15.8-6

5315.807 Prenegotiation objectives 15.8-7

5315.808 Price Negotiation Memorandum (PNM) 15.8-7

5315.808-90 Specialized negotiation memorandum 15.8-9

5315.808-91 Postaward price negotiation memorandum review 15.8-10

5315.809 Forward pricing rate agreements 15.8-10

5315.810 Should cost analysis 15.8-11

5315.870 Reserved

5315.871-4 Production Special Tooling (PST) and production. 15.8-13

5315.872-3 General 15.8-13

5315.873 Estimated data prices 15.8-13

5315.890 Formula Pricing Agreements (FPA) 15.8-14

5315.890-4 Responsibilities. 15.8-14

5315.891 Follow-up on contract audit reports. 15.8-14

5315.891-3 Responsibilities. 15.8-14

5315.891-5 Reporting of contract audit reports. 15.8-14

5315.892 Reopener clauses. 15.8-15

5315.892-1 Description. 15.8-15

5315.892-2 Policy. 15.8-15

5315.892-3 Requirements. 15.8-15

5315.892-4 Funding. 15.8-16

5315.892-5 Responsibilities. 15.8-16

SUBPART 5315.9--PROFIT

5315.903 Contracting Officer responsibilities. 15.9-1

5315.970 DD Form 1547, Record of Weighted Guidelines 15.9-1

Method Application (RCS: DD-A&T(Q)1751).

5315.971 Weighted guidelines method 15.9-1

5315.971-3 Contract type risk and working capital adjustment. 15.9-1

5315.971-4 Facilities capital employed 15.9-2

5315.974 Fee requirements for cost-plus-award-fee contracts. 15.9-2

5315.975 Reporting profit and fee statistics. 15.9-3

SUBPART 5315.10--PREAWARD, AWARD, AND POSTAWARD

NOTIFICATIONS, PROTESTS, AND MISTAKES

5315.1002 Notification to successful offeror. 15.10-1

5315.1002-90 Notices of award. 15.10-1

SUBPART 5315.11--OMBUDSMAN PROGRAM

5315.1100 Purpose and applicability 15.11-1

5315.1101 Procedures. 15.11-1

AFMCAC 96-2 15 February 1996 15.4-7

* TO BE FILLED IN BY THE OFFEROR IN THE PROPOSAL

(7) Use the matrix during formal government reviews to determine if the solicitation is ready to be released. At a minimum; the PCO shall ensure that the Section M of the RFP does not call for the evaluation of proposal data not requested by Section L. While offerors may be evaluated based on information obtained from outside of the offerors proposal (CPAR data, preaward survey data, etc.), these areas usually require the offeror to submit some basic reference information (list of previous contracts, identification of contract administration offices, etc.) In these cases, the review must ensure that necessary reference data is requested by the RFP. In addition, the RFP should not request data in Section L for which no evaluation is described in Section M. The matrix serves as an excellent tool for making these determinations.

(8) After award, retain the matrix as a reference tool in the contract file. When contract modifications become necessary, the matrix may help in ascertaining the portions of the contract requiring change.

(b) Keep the number and details of required pricing alternatives or options to a minimum consistent with management information needs.

(c) Keep requirements for the submission of "plans" to a minimum, particularly when the potential offerors' existing management systems (e.g., C/SCSC) have been acceptable on previous contracts. Take a "zero base" approach to fully justify requested solicitation plans. That is, start with the position that no plans are to be required and fully justify each plan that is required.

5315.407 Solicitation provisions.

(90)(a) MADES solicitations only: Include the provision at 5352.2159000, Representations and Certifications, in Section K.

(b) Solicitations for replenishment spares only: Include applicable provisions suggested in Subpart 5391, Surplus Acquisitions.

(c) The Contracting Officer shall insert a provision substantially the same as 5352.214-9001, Award- All or None Basis, in Section M of solicitations when contract award will be based on a proposal responding to all items included in the solicitation.

(d) The contracting officer shall insert a provision substantially the same as 5352.215-9017, Engineering Data, in Section L of all non-competitive solicitations for spare parts when it is anticipated that the offeror might offer an alternate part instead of a part specified in the schedule. Use of the provision is optional for all other non-competitive solicitations for supplies. If the Government elects to accept the alternate part proposed by the offeror, insert a clause substantially the same as 5352.215-9021 in Section B of the contract.

5315.408 Issuing solicitations.

(90) Solicitation Review Board (SRB). The purpose of a SRB is to review and evaluate solicitations before release to industry. Guidance on policy and procedures is in AFMCR 70-7, Solicitation Review Boards.

(91) Request for Proposal Industry Critique (OMB No. 0701-0121). Transmit (attached to the Executive Summary Letter) the OMB approved RFP Industry Critique to each potential offeror for competitive RFPs, with an expected value of $10M or more. Highlight in the Executive Summary Letter that industry participation is voluntary and anonymous, if desired. Advise

AFMCAC 96-2 15 February 1996 15.4-8

potential offerors that Critiques shall be returned to the designated office at the Center (outside of the program office) to be opened not earlier than

ten (10) days after contract award. As such, responses to the critique cannot effect the outcome of the competition. Critiques, therefore, should not be used to identify material RFP problems that effect their proposal or potential award of the contract. Material issues should be brought to the PCO's attention immediately. Contact HQ AFMC/PKP for copies of the RFP Industry Critique.

5315.409 Preproposal conferences.

(90)(a) Whenever practicable, a notice of prebid/preproposal conference should be included in the Commerce Business Daily synopsis. The notice should include date, time, location (including installation and building) and, if

applicable, security requirements.

(b) Minutes, including questions and responses will be maintained for

each preproposal conference. This record will be provided to all firms in

attendance and to those not in attendance to whom solicitations have been

provided. To preclude potential delays in the proposal opening date, copies

of the minutes will normally be mailed within five working days following the

conference.

5315.410 Amendment of solicitations before closing date.

(90) Procedures.

(a) All changes to quantity, delivery schedules, opening dates

specifications, significant contract provisions or to correct a defect or

ambiguity will be clearly displayed as a "From" and "To" entry in an amendment

to the solicitation. This will enable positive identification and correct

interpretation of the change.

(b) In the case of quantities, the old and new quantity and the net

increase/decrease will be shown on the amendment.

(c) The "From" and "To" entries for changes other than those identified

in paragraph (a) above are desirable but not mandatory.

5315.412 Late proposals and modifications.

(90) Use AFMC Form 219, "Record of Late Bid/Proposal Modification of Bid/Proposal and Withdrawal of Bid."

AFMCAC 96-2 15 February 1996 15.6-10

(5) For all competitively negotiated, defined by FAR 15.602(a)(1), acquisitions for FSC items, provide the following:

(i) The number of contract awards to a non-BRC when a BRC did not

submit a proposal and at least one BRC was solicited.

(ii) The number of contract awards to a non-BRC when a BRC submitted a proposal.

(iii) The number of contract awards to a BRC without a price differential (BRC was the low offeror).

(iv) The number of contract awards to a BRC with a price differential (BRC was not the low offeror).

(v) For each instance when a price differential was paid, identify the dollar and percentage values of the differential.

5315.605-91 Phase-in costs.

The competitive acquisition of operations and maintenance (O&M) services presents a unique problem in evaluating phase-in costs (those costs incurred by the new contractor before assuming full contract performance responsibility). In competitive O&M acquisitions requiring the use of formal source selection procedures as defined in AFFARS 5315.612, it may be appropriate to evaluate phase-in costs as a general consideration rather than as part of the cost criterion. If the contracting officer determines that competition will be enhanced, then phase-in costs may be evaluated as a general consideration in the context of the impact of such costs on the overall reasonableness, realism, and completeness of the total cost to the government. This determination is an acquisition-specific business decision that is made on a case-by-case basis, usually during the integrated acquisition strategy process (IASP). This decision must weigh the value of establishing or maintaining a competitive marketplace against ensuring maximum performance of the service involved at an affordable and reasonable cost. Additionally, the solicitation must clearly state in Section M how phase-in costs will be evaluated, regardless of whether such costs are evaluated as part of the cost criterion or a general consideration.

5315.607 Disclosure of mistakes before award.

(c)(3) The authority to make the determination is delegated to the Buying Office Contracting Official.

5315.608 Proposal evaluation.

(a) When utilizing the Lowest Evaluated Price (LEP) techniques contained in Section G of AFMCFARS, Appendix BB, include the clause 5352.215-9002, Lowest Evaluated Price Technique Technical Proposal Requirements, in Section L of the solicitation.

5315.609 Competitive range.

(d) In the Two-Step RFP process the contracting officer shall include the provision at 5352.215-9018 when a separate RFP will be used to solicit the cost/price proposal from offerors who have submitted acceptable technical proposals. However, a contracting officer may use one RFP to solicit technical proposals with a solicitation amendment to request cost/price

AFMCAC 96-2 15 February 1996 15.6-11

proposals. When doing so, include a notice in the RFP that (i) technical proposals will be due on a date defined in the RFP, and (ii) offerors who

submit acceptable technical proposals will be invited to submit cost/price proposals at a date which will be announced in an RFP amendment.

5315.611 Best and final offers.

(c)(i)(B) Submit requests for second or subsequent Best and Final Offers (BAFOs) for formal source selections to HQ AFMC/PKP. Authority to approve requests for second and subsequent best and final offers is delegated to the chief of the contracting office for competitive negotiated other contracting actions using other than formal source selection procedures. Science and technology source selections conducted pursuant to Section F of AFMCFARS Appendix BB are considered other than formal. This authority is not

redelegable.

(c)(ii) The Senior Center Contracting Official shall forward an annual summary report as required by DFARS 215.611(c)(ii) to arrive at HQ AFMC/PKP

not later than ten days after the close of each fiscal year.

5315.614-90 Incorporation of Contractor Technical Proposal

(a) The contracting officer shall use a clause substantially the same as 5352.215-9020, Incorporation of Contractor’s Technical Proposal, in Section I in contracts which incorporate a contractor’s technical proposal by reference.

(b) When AFMCFARS 5352.215-9020, Incorporation of Contractor’s Technical Proposal is used in a contract, the RFP, Section L, should also contain the provision at 5352.215-9019, Intent to Incorporate Contractor’s Technical Proposal.

AFMCAC 96-2 15 February 1996 15.8-2

determination of adequate price competition must be completed as part of the Price Competition Memorandum (5315.808-90(b)(3)) or PNM before contract award. It will be documented in, or attached to, the PCM or PNM. If the source selection is subject to business clearance, prepare a written determination of adequate price competition and submit it with the request for business clearance. If at any time during the source selection process adequate price competition is determined not to exist, the PCO shall request certified cost or pricing data exercising the provision prescribed at 5315.8046(a).

(e) Claiming and granting exemption. The PCO shall insert the provision at 5352.215-9015, Standard Form 1412, Claim for Exemption from Submission of Certified Cost or Pricing Data, in Section L of all solicitations where the requirement for certified cost or pricing data (FAR 15.8042) applies.

(i) In addition to the authorization and justification, waiver requests must include the following:

(1) How the reasonableness of the proposed price is to be established or how the government's interests have been protected.

(2) Sources for the item on previous buys.

(3) Coordination with the cognizant ACO to determine if the contractor has other government contracts in which cost or pricing data were required. If so, provide details of how the requirements were met.

(4) Ratio of CommercialtoGovernment work.

(5) ACO documentation of the prime contractor's procedures for handling subcontractors refusing to submit adequate cost or pricing data. Show evidence of the prime contractor's top level management involvement. The prime's procedures should be substantially the same as outlined in the FAR and supplements.

(6) Impact on cost, schedule, and mission if a waiver is not granted.

(7) Other significant information that may have an impact on the final Secretarial decision.

(8) A chronological factsheet summarizing pertinent actions and events, including document references where appropriate.

5315.804-6 Procedural requirements.

(a)(1) If adequate price competition is anticipated but may not be realized and certified cost or pricing data would otherwise be required under FAR 15.804-2, PCOs should include provision 5352.2159009 in Section L of the solicitation to reserve the right to request the certified data at a later date. The blank in paragraph (b) of the clause shall not be less than 30 days unless approved by the Senior Center Contracting Official.

(2) When the PCO has determined a need to request partial or limited cost or pricing data on actions below the threshold for certification (FAR 15.8042), the PCO shall include a provision substantially the same as 5352.2159008 in Section L of the solicitation. Use this provision with its Alternate I, when information is needed by element of cost.

(b) PCOs shall insert a provision substantially the same as the provision at 5352.2159007 in Section L of all solicitations requiring submission of certified cost or pricing data by the contractor.

(f) The contracting officer shall insert a clause in Section I of solicitations and contracts that is substantially the same as 5352.215-9016, Start-Up Amortization, when the requirements of FAR 15.804-6(f) apply.

AFMCAC 96-2 15 February 1996 15.9-1

PART 5315--CONTRACTING BY NEGOTIATION

SUBPART 5315.9--PROFIT

5315.903 Contracting Officer responsibilities.

(a) Source selections conducted in accordance with AFFARS Appendices AA or BB are considered to be situations where cost analysis may be performed to assess cost realism. Under these situations, if the contracting officer determines it to be potentially beneficial, the Weighted Guidelines Method (WGM) can be used informally and included as part of the file documentation. However, these should not be submitted under DoD’s management information systems procedures (DFARS 215.970(b)).

(b)(3)(ii)(A) The Chief of the Contracting Office or the Senior Laboratory Contracting Official may approve written requests for the use of an Alternate Structured Approach (ASA) in those extremely rare circumstances which meet the prescribed criteria. The authority cannot be redelegated. In requesting approval, Contracting Officers must document why normal WGM profit is not reasonable and why an ASA is more appropriate.

(B) Provide a copy of any "afterthefact" ASA approved under this exemption to HQ AFMC/PKF.

(C) An ASA developed by adding a percentage factor to the normal WGM to more easily negotiate profit objectives is unacceptable.

5315.970 DD Form 1547, Record of Weighted Guidelines Application, RCS: DD-A&T(Q)1751.

(b)(90) Each reporting unit, buying office, or contracting activity will appoint an individual to serve as DD Form l547 monitor with the following responsibilities:

(1) Acts as liaison between reporting unit, buying office, or the contracting activity and HQ AFMC on all matters relating to DD Form l547 reporting.

(2) Ensures the accuracy and timeliness of submitted reports, including those returned for correction.

(3) Establishes and maintains a contract file review system to insure that all reportable transactions, including priced options when exercised, are reported.

(c)(1)(i) Unless negotiations are delegated to the ACO, the contracting officer is responsible for the completion of the DD Form 1547.

(ii) Separate DD Form 1547s shall be completed for priced options concurrently with the DD Form 1547 for the basic contract. However, the option 1547s shall be kept in the contract file and submitted when each option is exercised in accordance with current submission requirements.

(iii) Where multiple contract types are involved in a contract action (e.g., FFP, FPI, and CPFF line items on one contract), prepare a separate DD Form 1547 for each contract type to determine suitable profit objectives for the different line items. The instruction in DFARS 253.215-70(b)(9) shall be interpreted to require consolidation within a single contract type, but multiple contract types shall not be combined into one DD Form 1547.

(iv) For time and materials (T&M) contracts covering a single identifiable effort where a proposal has been obtained, prepare a DD Form 1547 reflecting the objective cost elements for that effort. If a T&M ordering contract is contemplated, and a cost proposal has been obtained for a firm

AFMCAC 96-2 15 February 1996 15.9-2

initial order, prepare the DD Form 1547 based on the objective position value of that order. When a firm initial order is not known, or when negotiating

rates for the contract instead of obtaining a proposal specific to an order, a hypothetical scenario incorporating the objective cost position may be used

with DD Form 1547 to calculate a profit objective. After award of the T&M ordering contract, preparation of a DD Form 1547 for any subsequent order is not required unless a new profit analysis is performed in negotiating a price for such order. The cost reimbursable “materials” portion of T&M actions should be excluded from DD Form 1547 calculations.

(v) For modifications where the basic contract profit rate will not be used (see FAR 15.903(f)), prepare a DD Form 1547 reflecting only the value of new (added) work to price that portion of the change proposal. Deleted work may be priced using the basic contract rate, the rate computed for added work, or a separately computed rate, as considered appropriate by the contracting officer. DD Forms 1547 should not be prepared based on aggregate or net values of the modification.

(vi) Exclude non-profit-bearing costs (e.g., reimbursables, royalties, warranty costs, or state income taxes) from DD Form 1547 calculations.

5315.971 Weighted guidelines method.

5315.9713 Contract type risk and working capital adjustment.

(d)(2) This only applies to undefinitized contract actions. It does not apply to undefinitized long lead contracting actions (5317.93031(b)).

(f) Contract length factor. One source of information and advice for the contracting officer in developing the contract length factor is the production group in the contract administration office.

5315.9714 Facilities capital employed.

(d)(1)(90)(v) If the contractor's investments resulted from an Industrial Modernization Incentive Program, a below normal value should be assigned. This is because the purpose of rewarding a contractor in the facilities capital employed area is to recognize investments made by the contractor to reduce our acquisition costs.

5315.974 Fee requirements for awardfee contracts.

(c) When compliance with the offset policy of DFARS 215.973(b)(2) results in a negative base fee, subtract an amount equal to the facilities cost of capital or one percent of the estimated cost of the contract (whichever is less) from the award fee pool and use a base fee of not less than zero. The contracting officer shall document this in the price negotiation memorandum (PNM) and cite this paragraph as the authority.

AFMCAC 96-2 15 February 1996 15.9-3

5315.975 Reporting profit and fee statistics.

(a) Only alternate structured approaches shall be reported citing Use Code 4 in block 12 of the DD Form 1547.

(b) Where multiple contract types are involved (see 5315.970(c)(1)(iii)), submit only the DD Form 1547 reflecting the largest dollar amount if that form meets the reporting threshold. Otherwise, reporting is not required.

(c) Report T&M actions (see 5315.970(c)(1)(iv)) only if the value of the identifiable effort or known order reflected on the DD Form 1547 meets the reporting threshold.

(d) If a modification results in a net increase to the contract value that meets the reporting threshold, submit the DD Form 1547 prepared for new (added) work for reporting purposes.

AFMCAC 96-2 15 February 1996 16-i

PART 5316--TYPES OF CONTRACTS

SUBPART 5316.2--FIXED PRICE CONTRACTS

Paragraph Title Page

5316.203 Fixed price contracts with economic price adjustment. 16.2-1

5316.203-4 Contract clauses. 16.2-1

5316.205 Fixed price contracts with prospective price 16.2-1

redetermination.

5316.205-2 Application. 16.2-1

5316.205-3 Limitations. 16.2-1

5316.207 Firm-fixed-price, level-of-effort term contracts. 16.2-2

5316.207-90 Wrap rates. 16.2-2

SUBPART 5316.3--COST-REIMBURSEMENT CONTRACTS

5316.307 Contract clauses. 16.3-1

SUBPART 5316.4--INCENTIVE CONTRACTS

5316.403 Fixed-price incentive contracts. 16.4-1

5316.403-70 Fixed-price contracts with award fees. 16.4-1

5316.404 Cost-reimbursement incentive contracts. 16.4-1

5316.404-2 Cost-plus-award-fee contracts. 16.4-1

5316.405 Contract clauses. 16.4-3

5316.470 Other applications of award fees. 16.4-3

SUBPART 5316.5--INDEFINITE-DELIVERY CONTRACTS

5316.505-90 Contract clauses. 16.5-1

SUBPART 5316.6--TIME AND MATERIALS, LABOR-HOUR,

AND LETTER CONTRACTS

5316.601 Time-and-materials contracts. 16.6-1

5316.603 Letter contracts. 16.6-1

5316.603-2 Application. 16.6-1

5316.603-3 Limitations. 16.6-1

5316.603-4 Contract clauses. 16.6-1

SUBPART 5316.7--AGREEMENTS

5316.703 Basic Ordering Agreements (BOAs) 16.7-1

5316.703-90 Provisions/clauses. 16.7-1

5316.703-91 Placement and maintenance responsibility. 16.7-2

AFMCAC 96-2 15 February 1996 16.3-1

PART 5316TYPES OF CONTRACTS

SUBPART 5316.3--COSTREIMBURSEMENT CONTRACTS

5316.307 Contract clauses.

(b) Insert the clause at 5352.2169001 "Payment of Fee" in solicitations and contracts when the clause at FAR 52.2168 "Fixed Fee," or FAR 52.21610 "Incentive Fee" is used. The contracting officer may modify the above clause, provided that the modification does not permit payment of the fixed fee or target fee on the basis of actual expenditure as a percentage of total estimated cost.

(i)(90) Insert the clause 5352.216-9010, “Predetermined Indirect Cost Rates in Effect,” substantially as written, in Section B of solicitations and contracts when the clause at FAR 52.216-15, “Predetermined Indirect Cost Rates,” is used.

AFMCAC 96-2 15 February 1996 16.5-1

PART 5316--TYPES OF CONTRACTS

SUBPART 5316.5--INDEFINITE-DELIVERY CONTRACTS

5316.505-90 Contract Clauses.

The Contracting Officer shall insert a clause in Section I substantially the same as the clause at 5352.216-9011, “Offices Authorized to Issue Decentralized Orders,” in solicitations and contracts when an Indefinite-Delivery contract with decentralized ordering is contemplated.

AFMCAC 96-2 15 February 1996 16.7-2

5316.703-91 Placement and maintenance responsibility.

Each ALC shall establish, negotiate, and maintain all regular BOAs with contractors located within geographical boundaries assigned to the applicable ALC as shown in Figure 1. BOAs with foreign contractors and specialized BOAs shall be issued and maintained by the individual ALC when the contractor’s volume of business warrants the need.

AFMCAC 96-2 15 February 1996 17.76-1

PART 5317SPECIAL CONTRACTING METHODS

SUBPART 5317.76CONTRACTS WITH REQUIREMENTS FOR PROVISIONED ITEMS

5317.7602 Contracting requirements.

5317.7602-1 Solicitation provisions and contract clauses.

The contracting officer shall insert a clause substantially the same as the clause at 5352.217-9021, Provisioning Procedures, in Section I of solicitations and contracts containing provisioning requirements.

5317.760290 Policy governing use of Provisioned Item Orders (PIOs).

(a) A PIO is an undefinitized order issued under a contract to acquire initial spares, repair parts, support items, and very rare occasions, provisioning technical documentation (PTD) for new or modified Air Force weapon systems or end items of equipment.

(i) A PIO is used to acquire only that quantity of an item forecast to be needed for a limited period of initial support. This period begins with the operational need date at delivery of the first system/equipment to the first operational unit, and normally ends within a year, but not later than two years. The initial support period is not extended by subsequent deliveries to additional operational units/locations. The rationale for the time constraint is to ensure that only items not stocklisted are ordered via PIO.

(ii) "New" parts (nonstocklisted parts resulting from a design or engineering change notice) required for systems/equipment fielded subsequent to its initial support period may be acquired on a PIO.

(b) When Defense Logistics Information System (DLIS) screening or other research reveals that the item or acceptable substitute has a National Stock Number (NSN), a PIO will not be used as the procurement instrument unless one of the following exceptions applies:

(1) The new or substitute item is subsequently determined not to have an NSN, or the new or substitute item was assigned an NSN during a delay in PIO processing, incremental provisioning or early stocklisting without an acquisition for initial spares (i.e., items stocklisted and procured as longlead for production, or spares identified and stocklisted, but a requirement was not generated at that time due to funding constraints).

(2) When stocklisted items are not currently managed by DOD (i.e., Foreign Military Sales (FMS) items that are "country peculiar").

(3) The initial support period has elapsed, but the item had not been identified through the provisioning process. A onetime PIO can be issued for the program forecast period quantity provided the item meets the PIO policy criteria outlined above. This does not relieve the ALC of the obligation to pursue any or all vendor breakout opportunities that may exist or are recommended by the prime contractor(s).

(4) An item affected by a design change notice submitted after release

of the original PIO will be processed during the quantity delete/part added transaction for the quantity remaining on order. Any and all subsequent requirements for such items, except those involved in incremental provisioning, will be processed via purchase request and under no circumstances will additional PIOs be issued.

AFMCAC 95-1 31 December 1994 17.76-2

(c) A PIO will not be used:

(1) If the item was previously procured through a replenishment requirements system (D041, D062). Emergency requirements, including MICAP requirements, will be supported through the use of urgent purchase requests.

(2) If the item has an acquisition method code that specifies competitive procurement or direct procurement from the actual manufacturer (other than prime contractor).

(3) If the item is being procured as a replenishment buy under the spares acquisition integrated with production concept.

(4) If the item identified during provisioning is design stable and sufficient lead time exists to support the weapon system/end item operational need date.

(5) For an initial spare item in support of a production lot delivered subsequent to the initial support period.

(6) For urgent FMS replenishment spares requirements.

(7) If the item is available from commercial offtheshelf inventories or commercial servicing capabilities and will be used to support a commercial end item, unless written justification to establish provisioning requirements is included in the official contract file. The justification, written by the System Program Manager, will validate the need to provision the commercial end item and the need to maintain onhand inventories of support items instead of relying on commercial offtheshelf inventories or commercial servicing contracts. The following considerations, at a minimum, will be addressed.

(i) Availability. The availability of commercial inventories or servicing capabilities will be described and assessed.

(ii) Impact. The impact to combat readiness, combat effectiveness, and worldwide supportability by relying on commercial inventories or servicing capability will be described and assessed.

(iii) Repair Kits. When an onhand supply of support items appears to be warranted, a description of why issuance of a onetime repair kit concurrent with end item delivery is not a feasible alternative.

(d) The provisioning specialist, funds manager, and the Provisioning Procuring Contracting Officer (PPCO) shall ensure that funds placed on a PIO will not cancel before the anticipated expenditure date, i.e., that the PIO will be definitized and the payment check issued before the funds cancel.

(e) When the CO/PPCO receives a proposal for provisioning technical documentation, they are encouraged to forward the proposals to the Provisioning Specialist located at the air logistics center for review and comment. Provisioning Specialists have the technical expertise to assist in the evaluation of the PTD (both the need for and the cost of). During their evaluation, Provisioning Specialists shall seek the advice of their Systems Engineer and Equipment Specialist. In those instances where the CO delegates the authority to negotiate PTD to the ACO, the CO shall delegate that authority with the proviso that the ACO obtain an evaluation of the contractor's proposal from the Provisioning Specialist. If the PTD proposal is initially received by the CO/PPCO but will be negotiated by the ACO, obtain an evaluation from the Provisioning Specialist and forward it with the proposal to the ACO.

(f) To ensure proper contractual implementation of provisioning requirements and processes, the CO should involve the respective PPCO, Provisioning Specialist, and the ACO in the development of those appropriate portions of the solicitation. When provisioning aspects of the contract are

AFMCAC 96-2 15 February 1996 17.76-3

different from those initially included in the solicitation, coordinate the changes with the prime provisioning activity and obtain approval of the single manager. This procedure should also be used when contract modifications are issued for major system configuration changes (i.e., establishing a new block of systems or acquiring additional systems with significant changes) or when contract modifications are issued to place provisioning requirements on contract.

(g) See AFFARS 5301.9006-4 and 5317.7404-1(3) for information on provisioning/PIOs in relation to the business clearance process and undefinitized contractual action (UCA) approval.

AFMCAC 96-2 15 February 1996 17.93-1

PART 5317--SPECIAL CONTRACTING METHODS

SUBPART 5317.93--ASSOCIATE CONTRACTOR AGREEMENTS

5317.9300 Scope.

This subpart prescribes policy and procedures for the use of associate contractor agreements.

5317.9301 Definition.

"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.

5317.9302 Applicability.

(a) Prime contractor/subcontractor relationships do not constitute ACAs, and are not subject to this section's requirements.

(b) Use ACAs when contractors working on government contracts must cooperate, share resources or otherwise jointly participate in working on contracts or projects.

(c) Tailor each ACA to the requirements of the individual contracting situation. As a general rule, the details of such agreement should:

(1) Identify the parties and their relationship;

(2) Identify the program involved and the relevant government contracts of the parties;

(3) Describe contractor interfaces by general subject matter;

(4) Specify categories of information to be exchanged or support to be provided;

(5) Give expiration date (or event) of the agreement;

(6) State that if there is a conflict between the relevant government contract(s) and the agreement, the contract(s) govern(s); and

(7) Have an agreement to protect proprietary data, including restrictions on employees.

5317.9303 Procedures.

(a) PCOs shall include substantially the same clause as that at 5352.217-9025, Associate Contractor Agreements, in contracts which require the contractor to enter into such agreements when during contract performance the conditions in 5317.9302(b) exist, or are expected to exist.

(b) PCOs shall (i) levy the requirement for an ACA on each associate contractor through its respective contract preferably before contract award; the clauses should be essentially the same for all involved contracts; (ii) to ensure enforceability, task one of the associate contractors with overall responsibility for executing the agreements, and require that he provide a copy of the agreements before execution to the PCO for approval; task other contractors to enter into agreements; PCOs for these respective contracts must therefore plan and coordinate strategy for the requirements before inclusion in their contracts; and (iii) (A) review the ACAs for compliance with the contract clause requirements and this section; (B) approve clauses before execution, if required; and (C) if an organizational conflict of interest exists because of a government-directed contractor interface, handle the conflict in accordance with 5309.504.

AFMC FAR SUPPLEMENT 1 July 1992 17.93-2

(c) Task one of the associate contractors with overall responsibility for executing the agreements, and require that he provide a copy of the agreements, before execution, to the PCO for approval. Task other contractors to enter into the agreements. PCOs for these respective contracts must therefore plan and coordinate the strategy for the requirements before inclusion in their contracts.

(d) PCOs shall: (i) review the ACAs for compliance with the contract clause requirements and this section; (ii) approve clauses before execution; and (iii) if an organizational conflict of interest exists because of a governmentdirected contractor interface, handle the conflict in accordance with 5309.504.

AFMCAC 96-2 15 February 1996 25-i

PART 5325--FOREIGN ACQUISITION

SUBPART 5325.1--BUY AMERICAN ACT - SUPPLIES

Paragraph Title Page

5325.102-90 Format for nonavailability determination. 25.1-1

SUBPART 5325.3--BALANCE OF PAYMENTS PROGRAM

5325.302 Policy. 25.3-1

SUBPART 5325.802--INTERNATIONAL AGREEMENTS AND COORDINATION

5325.802-70 Contracts for performance outside the U.S. or Canada 25.8-1

SUBPART 5325.902--INCONSISTENCIES BETWEEN ENGLISH

VERSION AND TRANSLATION OF CONTRACT

5325.902-90 English Language Requirements. 25.9-1

SUBPART 5325.70--AUTHORIZATION ACTS, APPROPRIATIONS ACTS,

AND OTHER STATUTORY RESTRICTIONS ON FOREIGN PURCHASES

5325.7002-2 Exceptions 25.70-1

5325.7011 Restriction on strategic defense initiative 25.70-1

research, development, test, and evaluation.

5325.7011-1 Definitions. 25.70-1

5325.7011-2 Restrictions. 25.70-1

5325.7011-3 Exceptions. 25.70-1

5325.7011-4 Procedures. 25.70-1

SUBPART 5325.73--ACQUISITIONS FOR FOREIGN

MILITARY SALES

5325.7300-90 Foreign taxes, duties, and similar charges. 25.73.1

SUBPART 5325.91--FOREIGN DISCLOSURE REVIEWS

5325.9100 Deleted - Moved to Subpart 5393. 25.91-1

5325.9101 Deleted - Moved to Subpart 5393. 25.91-1

5325.9102 Deleted - Moved to Subpart 5393. 25.91-1

SUBPART 5325.92--SHIPMENTS ORIGINATING OVERSEAS

5325.9200 General. 25.92-1

5325.9201 Solicitation provisions and contract clauses. 25.92-1

5325.9202 F.O.B. points. 25.92-1

AFMCAC 96-2 15 February 1996 25.8-1

PART 5325--FOREIGN ACQUISITION

SUBPART 5325.8--INTERNATIONAL AGREEMENTS AND COORDINATION

5325.802-70 Contracts for Performance Outside the U.S. or Canada

(90) The contracting officer may insert a clause substantially the same as the clause at 5352.225-9007, Authorized Privileges for Contractor Personnel in Overseas Theater, in Section I of solicitations and contracts in which U.S. contractor performance overseas is required. The clause should be tailored to reflect applicable inter-governmental agreements, privileges approved by the overseas installation commander, and the appropriate contract pricing arrangement.

AFMCAC 96-2 15 February 1996 25.91-1

PART 5325FOREIGN ACQUISITION

SUBPART 5325.91FOREIGN DISCLOSURE REVIEWS

5325.9100 Deleted - Moved to Subpart 5393.

5325.9101 Deleted - Moved to Subpart 5393.

5325.9102 Deleted - Moved to Subpart 5393.

5325.9103 Deleted - Moved to Subpart 5393.

AFMCAC 96-2 15 February 1996 27-i

PART 5327--PATENTS, DATA, AND COPYRIGHTS

SUBPART 5327.3--PATENT RIGHTS UNDER GOVERNMENT CONTRACTS

Paragraph Title Page

5327.303 Contract clauses. 27.3-1

5327.305-3 Follow-up by the Government. 27.3-1

SUBPART 5327.4--RIGHTS IN DATA AND COPYRIGHTS

5327.403 Deleted. 27.4-1

SUBPART 5327.6--FOREIGN LICENSE AND TECHNICAL

ASSISTANCE AGREEMENTS

5327.675 Legal coordination. 27.6-1

AFMCAC 96-2 15 February 1996 27.4-1

PART 5327--PATENTS, DATA, AND COPYRIGHTS

SUBPART 5327.4RIGHTS IN DATA AND COPYRIGHTS

5327.403 Deleted.

AFMCAC 96-2 15 February 1996 28-i

PART 5328--BONDS AND INSURANCE

SUBPART 5328.1--BONDS

Paragraph Title Page

5328.101-3 Contract clause. 28.1-1

5328.102-3 Solicitation requirements. 28.1-1

5328.106-90 Review of bonds and notification of surety. 28.1-1

SUBPART 5328.3--INSURANCE

5328.306 Insurance under fixed-price contracts. 28.3-1

AFMCAC 96-2 15 February 1996 28.1-1

PART 5328--BONDS AND INSURANCE

SUBPART 5328.1--BONDS

5328.101-3 Contract clause.

(b) The contracting officer shall insert a clause, substantially similar to the clause at 5352.228-9001, Bid or Proposal Guarantee, in Section I of solicitations and contracts that require a bid guarantee. Modify the clause by inserting a higher percent when the contracting officer has determined a bid guarantee higher than 20% is needed in accordance with FAR 28.101-2.

5328.102-3 Solicitation requirements.

The contracting officer shall insert a clause, substantially similar to the clause at 5352.228-9002, Performance and Payment Bonds, in Section I of solicitations and contracts that require performance and payment bonds. Tailor the clause for requirements and indefinite-quantity contracts by adding a sentence to paragraph (a) to notify offerors and contractors that the contract price for requirements contracts is the price payable for the estimated quantity; the contract price for indefinite quantity contracts is the price payable for the estimated minimum quantity. If FAR 52.228-1, Bid Guarantee, will not be used because no bid bonds are required, the list of acceptable firm commitments from the FAR clause should be added to paragraph (a) of the clause.

5328.106-90 Review of bonds and notification of surety.

Before contract award, contracting officers shall obtain legal review of bid guarantees, required supporting documentation, and pledges of assets (if applicable). Before commencement of contract performance, contracting officers shall get legal review of performance and payment bonds, required supporting documentation, and pledges of assets (if applicable). Also obtain legal review for contract modifications that require additional bonding or consent of surety. The above legal reviews are not required when the offeror/contractor uses a corporate surety to satisfy bonding requirements, unless doubt of legal sufficiency exists.

AFMCAC 96-2 15 February 1996 31-i

PART 5331--CONTRACT COST PRINCIPLES AND PROCEDURES

SUBPART 5331.1--APPLICABILITY

Paragraph Title Page

5331.109 Advance agreements. 31.1-1

SUBPART 5331.2--CONTRACTS WITH COMMERCIAL ORGANIZATIONS

5331.201-90 Segregation of costs. 31.2-1

AFMCAC 96-2 15 February 1996 31.2-1

PART 5331--CONTRACT COST PRINCIPLES AND PROCEDURES

SUBPART 5331.2--CONTRACTS WITH COMMERCIAL ORGANIZATIONS

5331.201-90 Segregation of costs.

(a) Certain situations may require that contract costs be segregated (charge/incur cost by CLIN). Some examples are:

(1) Different contract types on the same contract (i.e., fixed-price, cost-reimbursement).

(2) Different fund types on the same contract (i.e., 3600 funds, 3010 funds).

(3) More than one funding source (e.g., USAF and FMS).

(b) If the contractor will be required to segregate costs by line item, insert the Special Contract Requirement at 5352.231-9001, substantially as written, in Section I of solicitations and contracts.

AFMCAC 96-2 15 February 1996 32.7-5

(i) Actions under Limitation of Cost and Limitation of Government's Obligation clauses:

(A) Contracting officers must take prompt and formal action as soon as they are notified, and certainly before the contractor reaches the full use of the funds on contract (FAR 52.23222). In addition to obtaining funding and program information from the project officer or other responsible persons, the contracting officer will advise the contractor that either: 1) a specified amount of additional funds has been allotted to the contract by a contractual instrument; 2) work will be discontinued when the funds allotted to the contract have been exhausted, and any work performed after that date is at the contractor's risk; or 3) the Government is considering allotting additional funds and any work performed before the allotment of these additional funds is at the contractor's risk.

(2) Change orders to contracts containing Limitation of Cost, Limitation of Funds, or Limitation of Government's Obligation clauses will contain either a:

(i) provision increasing the dollars available for payment as stated under the clause and state that the clause will apply for the increased amounts; or

(ii) provision stating that the estimated cost of the contract or a provision stating the dollars available for payment under such clauses is unchanged by the change order and that the Limitation of Cost, Limitations of Funds, or Limitation of Government's Obligation clause will be applicable to the amount in effect prior to the change order.

(b) The PCO may insert the clause at 5352.232-9000, Implementation of Limitation of Funds clause in Section B in all incrementally funded cost-reimbursement (with fee) solicitations and contracts to implement paragraph (b) of FAR 52.232-22, Limitation of Funds.

5332.790 Purchase Request.

A purchase request for minor construction, repair, or maintenance of real property (facility projects) is supported by a statement that sufficient funds are held in reserve by the using activity major command, and that such funds will be made available when the amount of the low acceptable bid or proposal is identified.

AFMCAC 96-2 15 February 1996 35-i

PART 5335--RESEARCH AND DEVELOPMENT CONTRACTING

Paragraph Title Page

5335.003 Foreign research. 35.0-1

(90)(d)

5335.006 Contracting methods and contract type. 35.0-1

(b)(90)(iv) Procedures. 35.0-1

5335.007-90 Solicitations. 35.0-1

5335.016 Broad agency announcements. 35.0-1

5335.070 Indemnification against unusually hazardous risks. 35.0-4

5335.070-1 Indemnification under research and development 35.0-4

contracts.

5335.070-3 Contract clauses. 35.0-5

5335.071 Additional contract clauses. 35.0-5

5335.90 Program Research and Development Announcements 35.0-5

(PRDA).

5335.9000 Scope. 35.0-5

5335.9001 Definitions. 35.0-5

5335.9001 Applicability. 35.0-5

5335.9003 General. 35.0-5

5335.9004 Format and contents of announcements. 35.0-6

5335.9005 Transmittal of announcements. 35.0-6

5335.9006 Receipt and evaluation of proposals. 35.0-6

5335.9007 Contracting process. 35.0-6

5335.9008 Announcements by DARPA, SDIO, and other DOD 35.0-6

agencies.

5335.9009 Coding of DD Form 350. 35.0-6

5335.9010 Reporting requirements for PRDAs and BAAs 35.0-6

(RCS: MTC-PK(Q)9202).

AFMCAC 96-2 15 February 1996 35.0-1

PART 5335--RESEARCH AND DEVELOPMENT CONTRACTING

5335.003(90)(d) Foreign research.

Foreign contracts are limited to efforts involving research, stateof theart studies, and engineering or technology studies that do not produce deliverable material, devices, or systems that require Government test or evaluation for acceptance. The end product of these foreign contracts will be scientific or engineering reports. However, in order to support the end- product report data, deliverable physical samples may be obtained as long as no Government acceptance test and evaluation is required.

5335.006 Contracting methods and contract type.

5335.006(b)(90)(iv) Procedures.

(A) Address applicability of this section during Acquisition Strategy Panels.

(B) Obtain the signatures of both the PCO and the program manager on determination requests pursuant to DFARS 235.006(b)(i)(C)(1), and if it is a program, also get the coordination of the PEO/DAC.

(C) Submit all determination requests required by DFARS 235.006(b)(i)(C)(1) to SAF/AQCS as early as possible in the acquisition cycle. If submitted concurrently with an AP and J&A, follow the procedures in AFFARS 5306.3 and 5307.1. If those documents were submitted previously, the determination may be processed separately. Send a copy of the determination request concurrently to SAF/AQCS. Process the original and 4 copies of the determination request in accordance with AFAC 92-04 dated February 26, 1992, pages E-3 through E-11 procedures.

(D) If in doubt as to whether a USD(A) determination is required, submit a determination request to SAF/AQCS for screening by SAF/AQC.

5335.007-90 Solicitations

(k) The contracting officer may include a clause substantially the same as the clause at 5352.235-9002, Key Positions and Minimum Qualifications, in Section I of solicitations and contracts when the decision to contract will be based to a large extent on the qualifications of the principal investigator and/or the key members of the research team.

5335.016 Broad Agency Announcements.

(a) General. Do not consider proposals received in response to BAAs to be Unsolicited Proposals (UPs). Do not use BAAs to replace existing contracting procedures when requirements can be sufficiently defined for an RFP. Use BAAs when the use of a conventional:

(1) Statement of work could result in unintentional stifling of ideas and concepts, given many possible research approaches; or

(2) Solicitation would unintentionally omit a source whose ideas and concepts or expertise are essential to comprehensive consideration of all potentially fruitful areas of scientific exploration.

(b)(1) If these descriptions are too lengthy to publish in the CBD, give the title of the description documents and the office address where they are available. BAAs may include the: government funding estimate; level of effort estimate; or contemplated performance period.

AFMCAC 95-2 21 July 1995 35.0-2

(3) Or, include a statement in the announcement that the announcement is open and effective until rescinded by a revised announcement.

(4)(i) Identify the address to which proposals are to be sent;

(ii) Specify points of contact by name, telephone number, and office symbol, where interested parties can get generally available technical, contractual and cost or pricing information;

(b)(90)(5)(i) Be prepared in synopsis format in accordance with FAR 5.207(b), (d), and (f);

(ii) Not contain: certifications and representations; solicitation provisions (other than incorporated in statements required by FAR 35.016(b) or other absolutely necessary solicitation guidance); or contract clauses;

(b)(90)(6) Include the following statements in the announcement:

(i) "No further evaluation criteria will be used in selecting the proposals."

(ii) “In order that proposals are afforded proper handling, offerors must mark their proposals with the restrictive language stated in FAR 15.609(a).” Contracting activities should refer to local proposal preparation guides or instructions, or provide proposal instructions directly in the announcement.

(iii) "Responses should reference the above number", and include a unique identification number.

(iv) "The cost of preparing proposals in response to this announcement is not an allowable direct charge to any resulting contract or any other contract, but may be an allowable expense to the normal bid and proposal indirect cost in FAR 31.20518."

(v) "Only contracting officers are legally authorized to commit the government."

(90) Preannouncement Requirements. Before a BAA is published:

(a) The requiring activity shall describe in writing:

(1) The broadly defined areas of potential research exploration;

(2) The criteria and procedures to be used to evaluate and competitively select proposals for award;

(3) The proposed cutoff time by date or in terms of days after announcement if needed.

(b) In laboratories and AFOSR, the Contracting Officer must document the file that the requirement is appropriate. For other than a laboratory or AFOSR, the Program Director, or a designee (not below a Colonel or GM-15) and Senior Laboratory Contracting Official shall coordinate on the requirements and document in the file that the announcement is appropriate.

(c) The requiring activity may be required to submit a planning (unfunded) purchase request to the PCO.

(91) Announcements.

Transmit the BAA, or the notice of the availability of the BAA, to the CBD according to FAR 5.207(a) and concurrently mail to sources identified by the SADBUS and the requiring activity.

AFMCAC 96-2 15 February 1996 36-i

PART 5336--CONSTRUCTION AND ARCHITECT-ENGINEER CONTRACTS

SUBPART 5336.2--SPECIAL ASPECTS OF CONTRACTING

FOR CONSTRUCTION

Paragraph Title Page

5336.201 Evaluation of contractor performance. 36.2-1

5336.291 Contract progress schedules and reports for 36.2-1

construction contracts.

SUBPART 5336.6--ARCHITECT-ENGINEER SERVICES

Paragraph Title Page

5336.604 Performance evaluation. 36.6-1

SUBPART 5336.90--SIMPLIFIED ACQUISITION OF BASE

CIVIL ENGINEERING REQUIREMENTS (SABER)

Paragraph Title Page

5336.9001 Requirements language and provisions. 36.90-1

SUBPART 5336.91--MODEL (PROTOTYPE) UNITS

5336.9101 Contract clause. 36-91-1

AFMCAC 96-2 15 February 1996 36.2-1

PART 5336--CONSTRUCTION AND ARCHITECT-ENGINEER CONTRACTS

SUBPART 5336.2--SPECIAL ASPECTS OF CONTRACTING

FOR CONSTRUCTION

5336.201 Evaluation of Contractor Performance.

(a)(4) The civil engineering project manager shall prepare and sign construction contractor performance evaluations. The Base Civil Engineer (BCE), Deputy BCE, or the Engineering Flight Chief if designated by the BCE, shall verify the evaluation, require any necessary revisions, then forward it to the contracting office by letter. The performance evaluations shall be reviewed and signed by the contracting officer.

5336.291 Contract progress schedules and reports for construction contracts.

Insert the clause at 5352.236-9006, substantially as written, in Section I of solicitations and contracts when AF Form 3064, Contract Progress Schedule, and AF Form 3065, Contract Progress Report, are required by AFFARS 5336.291.

AFMCAC 96-2 15 February 1996 36.90-1

PART 5336--CONSTRUCTION AND ARCHITECT-ENGINEER CONTRACTS

SUBPART 5336.90--SIMPLIFIED ACQUISITION OF BASE

CIVIL ENGINEERING REQUIREMENTS (SABER)

5336.9001 Requirements Language and Provisions.

(a) General. Provisions and clauses have been developed for use in SABER solicitations and contracts. Use substantially the same wording as provided in the provisions or clauses in SABER solicitations and contracts. These are in addition to any clauses normally included in a construction solicitation and contract.

(b) Solicitations and contracts. The following SABER clauses or provisions apply:

(1) Insert clause 5352.236-9000, substantially as written in Section B of solicitations and contracts.

(2) Insert the 5352.236-9001 provision substantially as written, in Section L of solicitations.

(3) Insert the clause 5352.236-9002, substantially as written, in Section C of solicitations and contracts when the Unit Price Book developed by the Air Force is used. Modify this language when another Unit Price Book is used.

(4) Insert the clause 5352.236-9003, substantially as written, in Section C of solicitations and contracts:

(5) Insert the clause 5352.236-9004, substantially as written, in Section C of solicitations and contracts:

(6) Insert the clause 5352.236-9005, substantially as written, in Section C of solicitations and contracts when Government Furnished ADP Equipment is not available.

AFMCAC 96-2 15 February 1996 36.91-1

PART 5336--CONSTRUCTION AND ARCHITECT-ENGINEER CONTRACTS

SUBPART 5336.91--MODEL (PROTOTYPE) UNITS

5336.9101 Contract Clause.

The contracting officer may insert the clause at 5352.236-9007, substantially as written, in Section I of the solicitation and contract, when the contracting officer determines that evaluation of model units is required for a construction or renovation project for military family housing, dormitories, or other project including many identical facilities.

AFMCAC 96-2 15 February 1996 37-i

PART 5337--SERVICE CONTRACTING

SUBPART 5337.1--SERVICE CONTRACTS-GENERAL

Paragraph Title Page

5337.110 Solicitation provisions and clauses. 37.1-1

SUBPART 5337.91--AFMC BASE SERVICES ACQUISITIONS

5337.9100 Contracting techniques. 37.91-1

SUBPART 5337.92--ENGINEERING AND OTHER TECHNICAL

SERVICES CONTRACTING

5337.9200 Scope of subpart. 37.92-1

5337.9201 Policy. 37.92-1

5337.9202 Definitions. 37.92-1

5337.9203 Management Responsibility. 37.92-3

5337.9204 CO responsibility. 37.92-3

5337.9205 SCO responsibility. 37.92-4

5337.9206 FAC responsibility. 37.92-5

5337.9207 FAE responsibility. 37.92-6

5337.9208 Program manager responsibility. 37.92-6

5337.9209 Solicitation provisions and contract clauses. 37.92-6

5337.9210 Before contract award. 37.92-7

5337.9211 Contract award and contract administration. 37.92-8

AFMCAC 96-2 15 February 1996 37.1-1

PART 5337--SERVICE CONTRACTING

SUBPART 5337.1--SERVICE CONTRACTS - GENERAL

5337.110 Solicitation provisions and clauses.

(a)(90) When the provision at FAR 52.237-1, Site Visit, is included in the solicitation and an organized site visit has been scheduled, include a provision substantially the same as the provision at 5352.237-9009 in Section L of the solicitation. Use 5352.237-9009, Alternate I, when potential offerors can call or write to arrange a site visit. Adapt the provision if a site visit is needed for a supply solicitation.

AFMCAC 96-2 15 February 1996 37.91-1

PART 5337--SERVICE CONTRACTING

SUBPART 5337.91--AFMC BASE SERVICES ACQUISITIONS

5337.9100 Contracting techniques.

This subpart establishes policy regarding the use of various contracting techniques that are to be used for AFMC base services acquisitions. They are as follows:

(a) Two-step sealed bidding. The use of the technique cited in FAR 14.5 will be considered for any base services requirement that has an annual estimated value of more than one million dollars.

(b) Lowest Evaluated Price (LEP) technique. The use of this contracting technique cited in Section G of AFMC Supplement to AFFARS Appendix BB will be considered for any base services requirement that has an annual estimated value of one million dollars or more.

(c) Streamlined source selection procedures. The use of the contracting technique cited in AFFARS Appendix BB and the AFMC Supplement thereto will be considered for any base services requirement that has an annual estimated value of one million dollars or more; however, it is mandatory if the requirement has an estimated value of more than $10,000,000 dollars for the life of the contract. Per paragraph 5 of AFMC Supplement to AFFARS Appendix BB, source selection authority is delegated to the base commander with the power of redelegation no lower than the O-6 or GM-15 level.

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PART 5337--SERVICE CONTRACTING

SUBPART 5337.92AFMC MANPOWER SUPPORT SERVICES (MSS)

5337.9200 Scope of subpart.

(a) This subpart prescribes policies, procedures, and responsibilities for acquiring and administering contracts for MSS, except as stated in 5337.9200 (c) below, where the place of performance for that part of the contract is the center or laboratory where the contract is awarded or other government installation and:

(1) the anticipated annual contract value is estimated to exceed the simplified acquisition threshold set forth in FAR Part 13;

(2) a task order is issued against a contract with an anticipated or aggregate annual value estimated to exceed the simplified acquisition threshold; or

(3) MSS contract line items contained in a nonservices type contract are estimated to exceed, on an annual basis, the simplified acquisition threshold.

(b) Management, the Contracting Officer (CO), and other joint functional team (JFT) member responsibilities and as well as proper contract administrative practices are emphasized. This subpart also addresses controls required for decentralized ordering.

(c) This subpart does not apply to MSS contracts awarded to Federally Funded Research and Development Centers (FFRDCs) covered by AFMC Instruction 64-103, "Administration of Contracts Awarded to FFRDCs," private sector contractors performing Commercial Activities (CA) as defined in OMB Circular A-76, “Performance of Commercial Activities,” and Contractor Engineering and Technical Services (CETS) contracts covered by Air Force Instruction 21-110, "Engineering and Technical Services.” Nor does it apply to Base Operating Support (BOS) contracts or portions of those contracts covered by Air Force Manual 64-108, “Service Contracts.”

5337.9201 Policy.

MSS contracts are vital to the performance of AFMC's mission. These contracts encompass a broad spectrum of activities and are enacted by a variety of contractual instruments. It is AFMC policy that:

(a) These contracts be administered and monitored according to FAR Part 42 by a joint functional team to ensure the Air Force receives value equal to its investment.

(b) Each contract has either a surveillance plan approved by the Surveillance Contracting Officer (SCO), or a comparable award fee plan, or a combination of the two, in accordance with this subpart.

(c) Only those FAR Part 42 responsibilities necessary to accomplish surveillance of the contractor's physical work activity (and if necessary, On-Site Property Administration) be retained by the acquisition activity when place of performance for that part of the contract is at the center or laboratory where the contract is awarded or other government installation. Any contract administration functions not selected to be retained should be assigned to the appropriate contract administration office (CAO).

(d) Award fees should be considered during acquisition planning for all MSS contracts.

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5337.9202 Definitions.

(a) Functional Area Chief (FAC) - The government representative responsible for a functional area in which the services are provided by a contractor. Depending on the activity and type of service required, the FAC is usually the program manager, laboratory director, test facility manager, or equivalent.

(b) Functional Area Evaluator (FAE) - The government representative, appointed by the FAC, responsible for monitoring, evaluating, and reporting contractor's performance. FAES may be assigned for specific contract areas (for example, task, subtask, or any grouping of these), entire contracts, or multiple contracts.

(c) FAE Training Record - Documentation of training received to perform the FAE function. This record is maintained in the surveillance folder.

(d) MSS Contracts - This is an AFMC term for contracted manpower to provide time, effort, or expertise. MSS includes BOS, CAAS, O&M, CA, and FFRDCs. (Note: While BOS, CA and FFRDC contracts are MSS, this subpart does not apply to them as stated in 5337.9200(c), above.) A MSS contract is generally a service contract, but may contain supply features. A MSS contract is often an indefinite quantity, time and materials, or a cost contract with task orders.

(1) Base Operating Support (BOS) Services - A services contract, awarded by the operational contracting organization, which provides services and support needed to operate a base. It provides services and support to functional areas/organizations such as transportation, supply, the surgeon general, environmental management, or civil engineering.

(2) Commercial Activities (CA) - A product or service which is obtainable from a commercial source (i.e., a commercial market exists), as defined in OMB Circular A-76. Most CA contracts are for BOS. CA also includes audiovisual, communications-computer systems, equipment and instrument fabrication, weapon system or component maintenance, repair, or testing, administrative or office support, training, and laboratory testing.

(3) Contracted Advisory and Assistance Services (CAAS) - CAAS definitions and exclusions are set forth in FAR subpart 37.2 “Advisory and Assistance Services.” Additional guidance is provided in DOD Directive 4205.2, “Acquiring and Managing Contracted Advisory and Assistance Services (CAAS),” AF Policy Directive 63-4, “Contracted Advisory and Assistance Services,” and AF Instruction 63-401, “Contracted Advisory and Assistance Services.”

(4) Federally Funded Research and Development Centers (FFRDC) - Private, public-service organizations managed by industrial, academic, or other not-for-profit entities, FFRDCs are established at the government's request to perform, analyze, integrate, support, or manage basic or applied research or development in support of a long-term need (i.e., systems engineering). See FAR Part 35 and AFMC Instruction 64-103, "Administration of Contracts Awarded to Federally Funded Research and Development Centers," for additional information.

(5) Operations and Maintenance (O&M) - The operation and maintenance of a test facility, communications-computer systems facility, installation, range, or laboratory.

(e) Surveillance Contracting Officer (SCO)- The contracting officer responsible for surveillance of the contractor's performance (and if necessary, on-site property administration). Generally the contracting officer retains this responsibility when the place of performance is at the center or laboratory where the contract is awarded or other government installation.

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(f) Surveillance Folder - A file containing the FAE appointment letter, SCO letter of designation, FAE training record, the pertinent parts of the contract, surveillance plan and surveillance log. The surveillance folder is maintained by the FAE.

(g) Surveillance Log - A checklist tailored by the FAE to document the results of the contractor's performance in accordance with the contract requirements. The surveillance logs are accomplished periodically during contract performance and must be submitted to the SCO for review as prescribed by the surveillance plan.

(h) Surveillance Plan - A document developed by the FAE, working with the FAC and the SCO, for monitoring, evaluating, and reporting a contractor's performance. The surveillance log is part of the surveillance plan. The initial surveillance plan must be reviewed by the FAC and forwarded to the SCO for approval. Any modifications to the surveillance plan necessitated by individual task orders must follow this same review and approval process.

5337.9203 Management responsibility.

The Senior Center Contracting Official (SCCO) or Senior Laboratory Contracting Official (SLCO) as defined by AFFARS 5302.101, will ensure the accomplishment of effective administration and surveillance of these contracts. Ensure the following are accomplished:

(a) Ensure that the effort being contracted is not available through in-house resources and is not an inherently governmental function in accordance with OFPP Policy Letter 92-1, dated 23 September 1992.

(b) Ensure a joint functional team, consisting of at least the FAC, FAE, and CO or SCO is established to ensure uniformity between contract and surveillance requirements and to administer each contract.

(c) Provide and document training for each JFT member to ensure they are adequately trained to perform preaward and post-award functional assignments. Centralized JFT training, coordinated by a center or lab MSS training focal point, is encouraged.

(d) Establish a review process to assure all orders and modifications are within scope, and appropriate distribution of task orders when multiple contracts exist.

(e) Ensure the CO with overall contract responsibility has full visibility and tracking of orders and funds expenditures.

(f) Establish periodic management reviews of MSS contracts to verify that administrative procedures, (i.e., ordering, surveillance, and funding) are working properly.

5337.9204 CO responsibility.

The CO will:

(a) Participate in the initial requirements planning. Advise and assist the customer in preparing a precise Statement of Work (SOW) or Statement of Objectives (SOO), when appropriate.

(b) Write clearly defined contract line items. Ensure that monetary limits are established on unpriced line items and other direct costs.

(c) Review proposed contract actions to ensure contractor performance is measurable and appropriate surveillance can be accomplished.

(d) Ensure oversight and control of all contracting actions. When decentralized ordering is authorized:

AFMCAC 96-2 15 February 1996 37.92-4

(1) Ensure a process is in place to make or obtain a written Determination and Finding (D&F) required by DFARS 237.104, if the contract is for personal services.

(2) Ensure ordering offices are specifically identified in the basic contract document.

(3) Establish aggregate order ceilings per contract for individual contracting offices.

(4) Establish a system for ordering controls that provides the CO knowledge of all orders before their execution by the contractor.

(5) Describe any controls planned for a specific acquisition in the Acquisition Plan (AP) if an AP is required.

(e) Ensure orders and task directives clearly describe the services to be rendered. Ensure that all orders or task directives comply with the contract schedule and SOW. Ensure that the contract shall not be modified or changed in any manner through orders or task directives.

(f) Ensure cost estimates are prepared and included in the contract file prior to requesting the contractor’s proposal for a task order. Prior to order placement, ensure documentation is obtained and included in the contract file to document review and technical evaluation of contractor’s proposal. Where not discretely proposed and evaluated, include discrete estimates of the amounts and kind of labor required, travel, materials, and period of performance. Cost estimates, technical evaluations and discrete estimates should be prepared by the requiring activity. In developing cost estimates and discrete estimates, assistance from the CO and cost/price analyst may be necessary to estimate costs associated with the technical estimates for labor

hours, material, travel, and other applicable areas. Note: refer to AFI 63-401, “CAAS,” paragraphs 6.1.2 and 6.1.3 for specific CAAS requirements.

(g) Retain if appropriate, only the FAR Part 42 responsibilities necessary to accomplish surveillance of the contractor's physical work activity, (and if necessary, On-Site Property Administration). Assign non-retained administration responsibilities to the appropriate CAO. Ensure retained and delegated responsibilities are clearly conveyed in writing to the CAO and this documentation is retained in the contract file.

(h) Ensure the SCO, FAC, and FAE understand the following:

(1) Personal vs. non personal services (emphasizing the need for special awareness and attention when contractors are supporting or participating on government integrated process/product teams (IPTs)),

(2) Unique clauses/special contract requirements

(3) Team member responsibilities,

(4) Delegations,

(5) Technical direction

(6) Ratification,

(7) Contract scope, and

(8) CLIN descriptions and restrictions

(i) Ensure that periodic reports (if contractually required) of the contractor's control of costs and management of technical activities are obtained from the SCO.

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5337.9205 SCO responsibility.

The SCO will:

(a) Ensure FAEs are identified in writing (see paragraph [(b)(3)] 5337.9206(c)). Provide a copy of each specific FAE designation to the contractor.

(b) Coordinate FAE training with the FAC. Ensure the FAE understands contract terms, conditions, specifications, and if one is used, the award fee plan, as they relate to the FAE's surveillance responsibilities. The FAE must also be knowledgeable of all forms and documents requiring review and coordination. Ensure the FAE understands that they have no authority to change a contract or to require contractor performance other than as required by the contract. Ensure FAEs understand the necessity of notifying the SCO of contractor problems pertinent to the contract.

(c) When a contract has multiple end users requiring many FAE's, the SCO and FAC will determine the most effective way to accomplish FAE training. Training packages may be used if they include the appropriate contract clauses, special contract requirements, specific technical requirements, and appropriate guidance letters, pamphlets, and examples. The SCO and FAC must be able to answer questions and provide any guidance FAEs may need.

(d) Work with the FAC to ensure the FAE appropriately develops and modifies the surveillance plan.

(e) Ensure surveillance plans are consistent with contract requirements. Ensure the reporting requirements are clearly defined in the plan, and that a copy of the plan is retained in the contract file.

(f) Verify that FAE surveillance folders are complete. (See "folder" as defined in 5337.9202(f) and Figure 5337-3.)

(g) Establish procedures with the FAE for review and submittal of contractor vouchers (invoices). These procedures should include verification that the services have been satisfactorily performed in accordance with the contract. Accomplish verification before authorizing payment to the contractor. Verification processes vary with the efforts performed. potential processes include: random floor checks, time card reviews, review of travel reports, and review of travel vouchers. FAE approval of a voucher indicates that the nature, type, and quantity of effort or materials being expended are in general accord with the progress of work under the contract. SCO coordination with the payment office is critical to ensure procedures are coordinated so payment can be made within the time specified for prompt payment.

(h) Ensure a Postaward Orientation Conference (PAOC), if required, is held within 30 days after contract or order award in accordance with FAR 42.5. The following are examples of areas recommended for discussion:

(1) Necessary procedures and practices that will preclude non personal services from becoming personal services,

(2) Pricing arrangements and ordering procedures,

(3) Contractual obligations of both parties. Emphasize significant terms and conditions,

(4) Roles of the CO, SCO, FAC, FAE, program manager, associated support functions, and CAO.

(5) Billing process, including required supporting documentation (personnel qualifications, timecards, work descriptions and any related requirements),

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(6) Subcontract approval requirements,

(7) Audits to be conducted during performance and before final settlement and contract close-out, and

(8) Contract schedule, deliverables, acceptance procedures, and documentation.

(i) Maintain a funds log for each contract, including order number, Accounting Classification Reference Number (ACRN), and item numbers as applicable. If a contractor report is used to satisfy this requirement, ensure its accuracy.

(j) If applicable, ensure that contractor systems for controlling costs are established and implemented. Establish procedures to evaluate how effectively contractors control costs and report to the CO.

(k) Ensure that FAE reports on the contractor's management of technical activities are reviewed and provided to the CO.

(l) Monitor contractor's progress in meeting contractual delivery schedules, including data deliverables and notify the CO and FAC of both potential and actual delinquencies.

(m) Maintain records of contractor performance (FAE surveillance reports, results of cost verification and analyses, and if applicable, records of the contractor's efforts to achieve its subcontracting plan goals).

(n) Ensure the contractor is aware of unacceptable surveillance results

and that the contractor implements appropriate corrective actions when necessary.

(o) Maintain a system for tracking the progress of contractor corrective actions. Exercise contract remedies when contractor's progress is inadequate.

(p) When applicable, maintain a current roster of contractor personnel assigned to the contract and determine who is responsible for accomplishing the verification of employee qualifications.

5337.9206 FAC Responsibility.

The FAC will:

(a) Ensure qualified personnel are appointed as FAEs. If the FAE requires training, ensure the SCO is aware that the training in paragraphs 5337.9205(a) and (b) above, must be accomplished. If a FAC is also the FAE, appointment of the FAE must be made one level above the FAC.

(b) Ensure the FAE understands the technical disciplines to be used by the contractor and has the knowledge and resources to determine the acceptability of the contractor's performance.

(c) The FAC will submit FAE appointments with the requirements package to the CO. Whenever possible, before a FAE change becomes necessary, notify the SCO that a replacement is required. If organizational staff is available, an alternative FAE should be appointed to better ensure continued performance of surveillance duties. Notify the CO or SCO, by letter, of the FAE appointment. (Figure 5337-1) The CO or SCO will in turn, issue a letter of designation to the FAE. (Figure 5337-2)

(d) Ensure the FAE develops a surveillance plan and maintains a surveillance log.

(e) Inform the SCO of circumstances that may require a contract modification.

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(f) Ensure assessment of overall contractor performance and completion of Service-CPAR Reports in accordance with AFMC Instruction 64-107, "Contractor Performance Assessment Reporting System (CPARS)."

5337.9207 FAE Responsibility.

The FAE will:

(a) Be familiar with contract terms, conditions, and governing specifications. Request additional training, if needed, from the SCO and FAC.

(b) Develop a surveillance plan for all or appropriate parts of the assigned contract. Tailor the plan so that review activities are commensurate with the level of detail needed to monitor the contract (including subsequent task orders). Ensure the plan and all modifications are reviewed by the FAC and sent to the SCO for approval.

(c) Monitor the contractor's performance according to the surveillance plan, evaluate the contractor's performance and enter the results into the surveillance log, including details of deficiencies cited. AF Form 370, Contract Performance Evaluation Report; AF Form 372, Contractor Monitoring and Surveillance Report; or other appropriate surveillance form or report may be used.

(d) Maintain a complete surveillance folder.

(e) Bring significant problems promptly to the attention of the FAC, and the SCO.

(f) Submit surveillance logs to the FAC and the SCO for review as prescribed by the surveillance plan.

(g) Implement procedures established with the SCO to review vouchers (invoices) and verify satisfactory contractor performance before they are submitted for payment.

(h) Perform other duties as determined by the SCO to be appropriate, and agreed upon by the SCO and FAC.

5337.9208 Program Manager Responsibility.

The program manager will:

(a) Be familiar with and ensure the need for the MSS contract requirements which support their program.

(b) Understand rules and prohibitions concerning personal services, inherently governmental functions, and conflicts of interest.

(1) Attend JFT training as necessary

(2) Ensure government employees working in their program also understand these rules and prohibitions and act to prevent their occurrences.

(c) Understand the overall administration and reporting requirements for the JFT.

5337.9209 Solicitation Provisions and Contract Clauses

(a) When contractor personnel (non-government advisors) may assist in evaluating proposals, the CO will insert the provision 5352.237-9002, Use Of Non-Government Advisors, substantially as written in Section K of the solicitation.

(b) When a contract calls for delivery of services and payment based on the type of service provided, the clause at 5352.237-9003, Employee Qualification, requires the contractor to provide information supporting the type of service provided. The CO may include the clause substantially as written in Section I

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for service contracts and may insert the clause substantially as written in Section I of all time and material solicitations and contracts.

(c) When the contract includes requirements for contractor personnel to assist in evaluating proposals or other contractor’s products, the CO shall use a provision substantially the same as 5352.209-9001, Organizational Conflict Of Interest in Section L of the solicitation and clause substantially the same as 5352.209-9002, Organizational Conflict Of Interest in Section I of the contract.

(d) When a prime contractor must agree to cooperate with a MSS contractor, the CO may insert the clause at 5352.237-9004, Enabling Clause Between Prime Contractors And MSS Contractors, substantially as written in Section I of the solicitation and contract.

(e) When the contractor may be required to travel within the contiguous United States or overseas, the CO may insert the clause at 5352.237-9005, Travel, substantially as written in Section I of the solicitation and contract.

(f) When formal training sessions and materials are to be ordered, the CO may insert the clause at 5352.237-9006, Training, substantially as written in Section I of the solicitation and contract.

(g) When the contractor will be performing services on a AFMC or other government installation, and contractor identification is not a SOW or SOO requirement, the CO shall insert the clause at 5352.237-9007, Contractor Identification, substantially as written in Section I of the solicitation and contract.

(h) When contract holidays are not established in the SOW or SOO, the CO shall insert the clause 5352.237-9008, Contract Holidays, substantially as written in Section G of solicitations and contracts for services, to establish which holidays are to be observed under the contract. Normally, the ten federal government holidays are observed in the United States. Some contractor personnel policies and labor agreements provide for observing different holidays than observed by the government. Services performed outside the United States usually observe the holidays of the country where the services are performed. Set forth in paragraph (b) of the clause is a list of the holidays contractually agreed to with the contractor.

5337.9210 Before Contract Award.

(a) The FAC, FAE(s), CO, and SCO will be identified. They should work together to ensure the model contract contained in the solicitation is sufficiently definitive to identify the work effort to be performed and that the surveillance plan will effectively address the salient aspects of the SOW or SOO.

(b) When the place of performance is at another AFMC or government installation, the JFT must determine what and how surveillance (and if necessary, on-site property administration) should be accomplished. Options may include: surveillance being coordinated from the contract award location with FAEs located at the performance location (working with the SCO and FAC at the contract award location), providing redelegations to other AFMC personnel at the performance location, or delegating surveillance to DCMC. The planned surveillance approach should be included in the surveillance plan and must be clearly coordinated with the parties involved and conveyed in writing to

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ensure adequate and effective surveillance. Delegation to DCMC should be coordinated in advance to ensure they are able to perform this surveillance

and they will accept the delegation. If surveillance is delegated to DCMC, then the requirements of Subpart 5337.92 would not apply to DCMC. DCMC may elect to use these procedures or may use their own. This can be resolved during the advance coordination.

(c) Surveillance plan: The surveillance plan should be developed concurrently with the SOW or SOO to ensure uniformity of contract requirements and oversight. The plan should be developed by the FAE working with the FAC and SCO (who will approve it). The surveillance plan should address applicable requirements of FAR Subpart 42.11, "Production Surveillance and Reporting." When the contract requirements include effort that can be measured objectively, i.e., deliverable items, data, reports required within a specified period, the plan should include appropriate standards of performance. Write the plan so that review responsibilities are commensurate with the level of detail needed to monitor the contract requirement. The amount of surveillance to be performed depends on considerations, such as: the task to be performed, the location, the product to be furnished at the

completion of the task, the nature of the services to be performed, the estimated number and required qualifications of contractor personnel to be used, the estimated man-hours, acceptance procedures, and funds administration. A sample surveillance plan is shown at Figure 5337-3.

(d) Standardized surveillance plans: Standardized surveillance plans may be established if approved by the Chief of the Contracting Office (COCO), as defined in AFFARS 5302.101. However, any "standardized" plan must be subsequently tailored to the specific contract requirements and approved by the SCO.

(e) Award Fee Plans: The COCO may approve, on a case-by-case basis, use of an award fee plan in lieu of a surveillance plan. CO and SCO (if identified) should coordinate on this plan prior to this approval. The award fee plan must ensure comparable oversight and measurement of a contractor's activities as that provided by a surveillance plan. Consider the following when assessing if you have comparable oversight and measurement:

(1) Surveillance plans are basically plans to observe (monitor, measure, evaluate, and report) key areas of performance to ensure we are receiving the services (performance) which are required and are being paid for.

(2) Generally award fee plans focus to incentivize key areas of performance. If these areas are the same as what would be observe under a surveillance plan for a particular contract, then the award fee plan is comparable. If the award fee plan does not include all areas that would be observed, then it is not comparable. In that case, it would be necessary to create a limited surveillance plan to cover those particular missing areas.

5337.9211 Contract Award And Contract Administration.

(a) Surveillance plan: Surveillance plans must be approved by the SCO no later than 15 days after contract award. All surveillance plans must be tailored to the specific contract requirements and amended, as necessary, if task orders are issued under the contract.

(b) Ensure surveillance requirements are appropriately retained or delegated. Make sure that any tasks retained do not duplicate the effort of the CAO. Some of these retained administrative functions, as determined by the SCO, and agreed upon by the SCO and FAC, may be performed by the FAE.

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Administer these contracts and orders in accordance with FAR part 42 and applicable surveillance plans.

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Figure 5337-1

Sample Notification to SCO of FAE Appointment

FROM: Functional Area Chief's (FAC) Organization and Name

SUBJ: Functional Area Evaluator (FAE) Appointment(s),

Enter Contract Number)

TO: Surveillance Contracting Officer (SCO)

Organization and Name

1. The following individual(s) is/are appointed as FAE(s) for the subject contract requirement listed below:

NAME ORGANIZATION PHONE NO. REQUIREMENT

2. Each individual listed above has been notified of their selection as an FAE for the requirement(s) shown above and has been advised that they will be required to develop a surveillance plan for monitoring contractor performance. You are authorized to contact the above appointee(s) to schedule training on contract terms and conditions, to review surveillance plans, or for any other reason to establish an effective contractor surveillance program.

3. Problems with the performance of any of the individuals listed above should be brought promptly to the attention of the undersigned.

Signature Block of the FAC cc:

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Figure 5337-2

Sample SCO Letter of Designation to the FAE

FROM: Surveillance Contracting Officer's Organization and Name

SUBJ: Functional Area Evaluator (FAE) Designation for (Contract Number

and Subject)

TO: FAE's Name and Organization

1. You have been designated as the FAE for the contract requirement(s) listed above. This letter designates specific responsibilities that you will perform as the on-site representative for the SCO.

2. To effectively accomplish your duties as an FAE, you should become familiar with AFMC FAR Supplement Part 5337--Service Contracting, (insert local regulation), and the contract listed above. These are available at (enter the location of these documents) for your review. You should also be aware of the technical requirements of all or any portion of the contracts for which you are responsible.

3. The following is a brief summary of your responsibilities as an FAE:

a. Develop a surveillance plan. This plan is the most important part of the process and defines the methodology and procedures for monitoring the contractor's performance. The plan should be developed in cooperation with the functional area chief, who should review the plan and indicate concurrence with the plan prior to its submission to the SCO.

b. Develop and maintain a surveillance log. The surveillance plan establishes the frequency of surveillance of contractor activities and the methods for accomplishing this surveillance. A record of surveillance activities is maintained in a surveillance log. AF Form 370, Contract Performance Evaluation Report; AF Form 372, Contract Monitoring and Surveillance Report; or other appropriate surveillance reports and forms may be used for this purpose.

c. Notify the SCO of any significant problems you are unable to resolve. Do not wait until the schedule or program is impacted; let the SCO know about the problem when you realize that the contractor is not being responsive. Keep good records.

d. Do not authorize any changes to the contract. Only a contracting officer can bind the government and direct the contractor to make changes.

e. Submit surveillance logs to the SCO at the time intervals specified in the surveillance plan. Remember, in the event of dispute or litigation, the entries in the surveillance logs will be important in determining the choice of remedial contractual action, if such action is required, and could be releasable to the contractor.

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4. If, for any reason, you become unable to perform your duties as outlined in the surveillance plan or have any questions about this designation or your responsibilities as an FAE, please advise the undersigned at (enter office symbol and phone number), and the Functional Area Chief (enter name, office symbol, and phone number) immediately.

Signature Block of the SCO cc:

AFMCAC 96-2 15 February 1996 37.92-14

Figure 5337-3

SAMPLE SURVEILLANCE PLAN

General. This surveillance plan is developed in accordance with AFMC FAR Sup 5337.92 to establish the procedures for monitoring, reporting and evaluating the performance of (list contractor) under contract (list contract number), (order # if applicable). Contractor requirements, level of performance, frequency and method of inspection, review responsibilities and reporting requirements follow.

1. Contract Requirements. (List contractor) is tasked to provide support in the areas (list functional areas) (Statement of Work {SOW} paragraphs), and labor categories (list labor categories from delivery order or task order) (SOW paragraphs). Contract Data Requirements List (CDRL) requirements include (list CDRLs from order) (SOW paragraphs).

2. Surveillance Folder. The FAEs assigned to perform surveillance of the (name of contractor) contract are required to prepare a Surveillance Folder for their assigned contract requirements. The folder will have the following divisions:

a. FAE appointment letter, SCO letter of designation, and Training Record.

b. SOW, CDRL, and other pertinent parts of the contract.

c. Surveillance Plan.

d. Surveillance Reports.

e. Other applicable documentation, such as:

(1) Correspondence and Contract Performance Inquiries

(2) Award Fee Evaluations

(3) Contract Modifications

(4) Customer and user comments

(5) Cost verification and analyses results

(6) Data and technical reports

3. Level of Performance Evaluation. The contractor will be evaluated in the following areas: Technical Performance, Schedule and Timeliness of Deliveries, Contractor Resource Control, and Management. In addition, each

office or Directorate supported by (list contractor name) personnel will provide an independent performance evaluation. Any discrepancies will be brought to the attention of the SCO. (Note: The evaluation responsibilities,

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timing, and methodology will be established and documented in the surveillance plan.)

a. Technical Performance: The contractor will be evaluated as to the quality of the output of their work. The contractor's personnel should be technically competent in the tasks identified in the SOW or other ordering document under the contract. Included in the technical performance are the contractor's contribution in meetings and reviews, the quality of the contractor's technical reports, contractor's productivity and the overall quality of the technical support provided.

b. Schedule and Timeliness of Deliveries. The contractor should be responsive to Government taskings and submit their monthly reports, technical reports and trip reports as required by the contract.

c. Contractor Resource Control. The contractor shall use the hours authorized to provide support throughout the period of performance. The contractor should not exceed the material, travel or other cost-reimbursable Contract Line Item Numbers (CLINs) without prior SCO approval. The contractor will be evaluated in the successful control of resources devoted to the task or order. The FAE shall compare monthly the contractor's rate of labor and funds usage with those allocated for the effort. Any discrepancies will be brought to the attention of the contracting officer.

d. Management. The contractor's management should put adequate systems in place to most efficiently perform the contract and protect the government's interests. For example, the contractor should have approved government property management, quality control, subcontracting, and accounting systems in place. (Note: Other government agencies may already have responsibility for this oversight. The CO must establish prior to contract award if this oversight is already being performed, and if so, establish communication channels with the oversight agency.)

4. Timely Feedback To Contractor. Timely feedback to the contractor on unacceptable performance will be provided by the FAE. Prompt feedback is essential so the contractor can develop and implement a corrective action plan. The contractor's corrective action must be reported to the contracting officer for tracking purposes.

PREPARED BY: REVIEWED BY:

(Name) (Name)

Functional Area Evaluator Functional Area Chief

APPROVED BY:

(Name)

SCO

AFMCAC 96-2 15 February 1996 39-i

PART 5339--ACQUISITION OF INFORMATION RESOURCES

SUBPART 5339.001--POLICY

Paragraph Title Page

5339.001 Policy 39.0-1

AFMCAC 96-2 15 February 1996 39.0-1

PART 5339--ACQUISITION OF INFORMATION RESOURCES

SUBPART 5339.001--POLICY

5339.001-90 Policy

The following clauses are applicable to Federal Information Processing (FIP) resources that are controlled in accordance with 41 CFR Part 201, the Federal Information Resources Management Regulation (FIRMR) and FIP resources acquired under the Nunn-Warner Amendment to the Brooks Act.

(a) The CO may insert a clause substantially the same as 5352.239-9000, Discontinuance (FIP Resources), in Section E of all solicitations and contracts that provide for maintenance of FIP resources of Time and Material or Cost contracts. This clause allows the Government to discontinue maintenance of FIP resources, originally, by giving the contractor 30 days written notice. In effect, this clause is a pre-negotiated partial or complete termination for the convenience of the Government at no additional cost to the Government. The number of actual days notice may be varied at the discretion of the CO. NOTE: Do not use this clause if the contract includes 5352.239-9003.

(b) The CO may insert a clause substantially the same as 5352.239-9001 Technology Insertion (FIP Resources), in Section I of all solicitations and contracts for FIP resources hardware and software. This clause provides for the contractor to notify the Government of improvements other than maintenance and negotiate them into the contract.

(c) The CO may insert a clause substantially the same as 5352.239-9002, Replacements, Alterations and Attachments (FIP Resources), in Section I of all solicitations and contracts for leased hardware and hardware maintenance contracts. If TEMPEST is not involved use Alternate I.

(d) The CO may insert a clause substantially the same as 5352.239-9003, Maintenance (FIP Resources), in Section I of all solicitations and contracts for hardware and hardware maintenance service that provide for a fixed monthly maintenance charge as shown in Section B of the contract.

(e) The CO may insert a clause substantially the same as 5352.239-9004, Task Change Proposals (FIP Resources), in Section I of all solicitations and contracts calling for FIP resource development efforts or maintenance services.

(f) The CO may insert a clause substantially the same as 5352.239-9005, Liquidated Damages Hardware/Software (FIP Resources), in Section I of all FIP resource solicitations and contracts when liquidated damages are determined necessary by the Contracting Officer in accordance with FAR Subpart 11.5.

(g) The CO may insert a clause substantially the same as 5352.239-9006, Contractor Furnished Software (FIP Resources), in Section I of all solicitations and contracts when software will be furnished and maintained by the contractor and the Contracting Officer determines it is appropriate to require software updates.

(h) The CO may insert a clause substantially the same as 5352.239-9007, Contractor-Sponsored Modifications (FIP Resources), in Section I of all solicitations and contracts that require contractor-sponsored modifications.

(i) The CO may insert a clause substantially the same as 5352.239-9008, Contractor Site Preparation (FIP Resources), in Section I of all solicitations and contracts when the contractor is responsible for site preparation.

AFMCAC 96-2 15 February 1996 39.0-2

(j) The CO may insert a clause substantially the same as 5352.239-9009, Government Site Preparation (FIP Resources), in Section I of all solicitations and contracts when the government is responsible for site preparation.

(k) The CO may insert a clause substantially the same as 5352.239-9010, Computation of Fractional Charges (FIP Resources) in Section I of all solicitations and contracts.

(l) The CO may insert a clause substantially the same as 5352.239-9011, Programming Aids, (FIP Resources), in Section I of solicitations and contracts when programming aids are needed.

AFMCAC 96-2 15 February 1996 42-i

PART 5342--CONTRACT ADMINISTRATION

SUBPART 5342.2--ASSIGNMENT OF CONTRACT ADMINISTRATION

Paragraph Title Page

5342.203 Retention of contract administration. 42.2-1

5342.205 Designation of the paying office. 42.2-1

SUBPART 5342.5--POSTAWARD ORIENTATION

5342.502 Selecting contracts for postaward orientation. 42.5-1

5342.503 Attendance at postaward conferences. 42.5-1

5342.570 Contract clause. 42.5-1

SUBPART 5342.71--VOLUNTARY REFUNDS

5342.7100-90 General. 42.71-1

5342.7101 Solicited refunds. 42.71-2

5342.7101-91 Procedures applicable to spare parts. 42.71-2

AFMCAC 96-2 15 February 1996 42.5-1

PART 5342--CONTRACT ADMINISTRATION

SUBPART 5342.5--POSTAWARD ORIENTATION

5342.502 Selecting contracts for postaward orientation.

Except for follow on contracts for the same system with the same contractor, on major Modification/Programmed Depot Maintenance (MOD/PDM) and engine overhaul contracts or any maintenance contract of sufficient critically, the contracting officer should ensure that a Postaward Conference (PAC) is held. The ACO will be responsible for a thorough review with the contractor of the initial and continuing material support to be provided; a clear understanding of responsibilities and duties of all government and contractor personnel involved; and any needed indoctrination of the contractor concerning special procedures for material control and reporting. Where a need for contractor training on the G009, Contract Depot Maintenance Industrial Fund (DMIF) Government Furnished Material (GFM) Transaction Reporting System, is indicated, the contracting officer will coordinate the arrangements for the training session with the G009 OPR, the logistics center Production Management Specialist, the ACO, and the Property Administrator.

5342.503 Attendance at postaward conferences.

The program manager and the PCO shall attend the PAC for a new contract for a major maintenance, modification, or overhaul program or any followon contract with a major change in the statement of work or other contract requirement. Approval for nonattendance shall be at least two levels above the PCO (or division level) and be documented in the contract file.

5342.570 Contract Clause.

Only use the clause at DFARS 252.242-7000, Postaward Conference, in solicitations and contracts when the PCO decides that there is a reasonable likelihood that a postaward conference will be held. Since a postaward conference may be initiated by either the PCO or the ACO, the PCO should communicate with the ACO before making the decision to include or omit the clause.

AFMCAC 96-2 15 February 1996 43.2-1

PART 5343--CONTRACT MODIFICATIONS

SUBPART 5343.2--CHANGE ORDERS

5343.201 General.

5343.201-90 Issuance of change orders.

Each AFMC field activity shall implement the following regarding issuance of change orders. Subpart 5317.74 contains additional policy and procedures regarding the issuance of undefinitized contractual actions. For AFMC, these policies and procedures apply equally to changes issued under the changes clause.

(a) Undefinitized work is not authorized except under the conditions in AFFARS 5317.74. This applies to both Government and contractor initiated changes.

(1) Before issuing any change order, when appropriate, the PCO in coordination with the contractor will develop a definitization milestone schedule, which becomes part of the official contract file. At all AMIS capable buying activities, this definitization milestone schedule shall be used to update the computer generated definitization schedule in the Procurement Management System (PMS). Manage change order definitization according to this schedule as revised in PMS.

(2) The PCO will also use Amendment of Solicitation/Modification of Contract, AFMC Form 702/SF30, for issuing the "written direction/notification" to the contractor contemplated by the warranty clause of the contract covering correction of deficiencies, as the authority for issuance. In this instance, the modification should contain language substantially as follows:

"The contractor shall perform any work directed by this change order in accordance with the warranty clause of the contract, 'title.' Nothing in this change order shall be construed as a waiver of any of the Government's rights, including all rights under this clause to direct additional contractor efforts or to negotiate with the contractor an equitable adjustment in the contract price".

(3) Documented cost estimates of change order costs are necessary to provide management with a means of evaluating the reasonableness of contractor NTE cost proposals, determining the cost-effectiveness of the change, and supporting decisions to issue undefinitized orders. Therefore, a cost estimate is required on all changes expected to have a total program impact of $1 million, or more, or which involve a possible contract price adjustment of 10 percent or more, whichever is less. The program office will in most cases prepare the cost estimate. Contract file documentation is required to provide the rationale or basis for assumptions that support and explain how the

estimate was prepared.

(b) Include language substantially as follows in unpriced change orders to fixed price and cost-reimbursement contracts. Terms appropriate to the contract type (“contract price” or “total contract amount” [target cost plus target fee] or “total target price” [target cost plus target profit]) must be inserted where the three asterisks appear.

AFMCAC 96-2 15 February 1996 43.2-2

(1) “This change shall not prejudice the rights of either the contractor or the Government to negotiate an equitable adjustment in the contract price, delivery schedule, and/or terms and conditions as contemplated by the “Changes” clause of the contract; provided, however, that in no event shall the adjustment in *** resulting from the herein described changes be greater than $_________________ and in no event shall the delivery schedule be adjusted to permit performance later than set forth herein. This not-to-exceed amount is in accordance with the contractor’s agreement dated ____________. Funds in the amount of $____________________ are hereby obligated to cover contractor expenditures on this change order through the definitization date contained in the change order. It is contemplated that no further funds will be obligated prior to definitization of this change order.”

(2) If the equitable adjustment is a negative one, substitute the following paragraph for the paragraph (1) above:

“This change shall not prejudice the rights of either the contractor or the Government to negotiate an equitable adjustment in the contract price, delivery schedule, and/or terms and conditions as contemplated by the “Changes” clause of the contract; provided, however, that in no event shall the adjustment in *** resulting from the herein described changes be less than $_____________________ and in no event shall the delivery schedule be adjusted to permit performance later than set forth herein. This not-less-than amount is in accordance with the contractor’s agreement dated ______________. Funds in the amount of $____________________ are hereby obligated to cover contractor expenditures on this change order through the definitization date contained in the change order. It is contemplated that no further funds will be obligated prior to definitization of this change order.”

(3) If the contract is incrementally funded, substitute the following paragraph for the above paragraph (2):

“This change shall not prejudice the rights of either the contractor or the Government to negotiate an equitable adjustment in the contract price, delivery schedule, and/or terms and conditions as contemplated by the “Changes” clause of the contract; provided, however, that in no event shall

the adjustment in *** resulting from the herein described changes be greater than $_________________ and in no event shall the delivery schedule be adjusted to permit performance later than set forth herein. This not-to-exceed amount is in accordance with the contractor’s agreement dated ____________. Contract line item(s) ___________________are incrementally funded. For these item(s) the sum of $__________________ of the total price is presently available for payment and allotted to this contract. This sum is obligated to cover contractor expenditures on this change order through the definitization date contained in the change order. Further funds obligations are subject to the “Limitation of Government’s Obligation” clause (DFARS 252.232-7007) of this contract.”

AFMCAC 96-2 15 February 1996 43.2-3

5343.204 Administration.

(c) Complete and final equitable adjustments. If the modification is bilateral, state that the Supplemental Agreement is a full and final equitable adjustment and the contractor releases the Government from any and all liability under the contract for further equitable adjustments. If the modification is unilateral and no additional consideration is required, make a positive statement to that effect.

5343.204-90 Definitions.

An Undefinitized Supplemental Agreement is a bilateral agreement to an existing contract which does not have a definitive pricing agreement, but instead has a NTE amount to which the contractor and the Government agree.

5343.204-91 Correction, revision, or supersession.

For tracking purposes, correction, revision, or supersession of an undefinitized change will have no effect on the original definitization schedule.

5343.204-92 Identification of new revised amounts.

In addition to the information required by DFARS 243.171, when the supplemental agreement or unilateral modification is not issued sequentially, the modification must also identify contract modifications which have not yet been distributed.

5343.204-93 Undefinitized Supplemental Agreements.

Undefinitized supplemental agreements are subject to the limitations and restrictions in 5317.74. The management and administration of any supplemental agreement for new work that is not fully definitized as to the price will follow the procedures established for letter contracts (5316.603). For the purpose of management reporting, (See AFMCR 706, Contract Reporting Requirements, HQ AFMC will consider all such supplemental agreements to be letter contracts designated as supplemental agreements.

5343.204-94 Reporting.

Report undefinitized contractual changes in accordance with AFMCR 70-6. All AMIS capable activities shall report issuance and definitization of undefinitized change orders using AMIS Undefinitized Document Control (UDC).

5343.205 Contract Clauses.

(90) To establish a requirement to incorporate changes not exceeding an agreed upon monetary amount at no increase or decrease in contract price, insert the clause at 5352.243-9000, substantially as written, in Section H of solicitations and contracts. Make sure that the amount negotiated in the clause does not reflect pricing uncertainties in the basic requirement. Use of an advance agreement can eliminate numerous urgent change orders typical of a complex requirement.

(91) Insert FAR Clause 52.243-6, Change Order Accounting, substantially as written in all production solicitations and contracts exceeding $1,000,000, and in all research and development solicitations and contracts exceeding $1,000,000. The clause will apply to individual changes exceeding $100,000

AFMCAC 96-2 15 February 1996 43.2-4

and to any series of related changes exceeding $100,000. Waivers to this requirement require approval by one supervisory level above the PCO. Whenever practical, apply the clause to change orders. For example, if a contractor cannot readily segregate costs between changes and the basic contract, do not use the clause. Conversely, if the change order work is reasonably segregable, use the clause.

(92) If the PCO anticipates issuing unpriced change orders under the contract, depending upon contract type, the PCO shall insert one of the alternate clauses at 5352.243-9002, Not-To-Exceed/Not-Less-Than Agreements, substantially as written, in section I in the solicitation and contract.

5343.290 Other Modifications.

5343.290-1 Work Requests.

(a) Definitions. Work Request-Severable is an order for supplies or services, which could not be determined at the start of the contract, and where failure to furnish the supplies or perform these services would not preclude the contractor from performing the basic contract task.

(b) Work requests are appropriate for use on contracts issued by AFMC contracting activities for: maintenance, repair or overhaul of Government property furnished under contracts; supporting tests of equipment, including modifying support equipment undergoing RDT&E; and modifications to correct site peculiar conditions that impede accomplishment of contracted efforts. The funding policy established by this subpart does not apply to over and above requirements covered by part 5392.

(c) Work requests issued to direct contractor repair of Government property shall cite the Government property clause of the contract as the authority under which the property is provided. The contract may also contain a line item and a special contract requirement covering repair of Government property.

(d) Work requests to support testing shall only be used if authorized by the contract under which the equipment is delivered and tested or test support is provided. The contractual authorization will be provided by including a contract line item and a special contract requirement.

(e) The Senior Center Contracting Official or equivalent, shall authorize the inclusion of necessary provisions in contracts for supporting tests.

(f) Funds may be reserved for efforts to be directed by work requests by either of two methods. Use method number (2), described below, whenever possible since it is the preferred procedure. Regardless of the method used to reserve the funds, an obligation will only be recorded at the time a work request is issued. Accounting and appropriation data will be cited on each work request.

(1) When use of work requests are established in a contract by a contract line item and a special contract requirement, funds may be reserved (committed) at the time the contract is awarded. No obligation or expenditures of these funds shall be permitted except by issuance of a work request.

(2) Funds may also be reserved by use of an Administrative Commitment Document (ACD) or a funded purchase request. Always use this procedure for work requests-severable and use it for work requests-nonseverable whenever circumstances permit. This procedure may be used whether work requests are to

AFMCAC 96-2 15 February 1996 43.2-5

be issued in accordance with a contract line item and special contract requirement or a contract clause. When this procedure is followed, an ACD shall be furnished to the ACO, who will issue the work requests.

(g) When funds are to be reserved as described in (f)(1) above, the amount shall be identified in the descriptive data for the appropriate line item, as an estimate. In the descriptive data, also include a notice stating that funds will be obligated on work requests and describe the method by which the contractor will perform work and incur expenditures in accordance with the line item. Exclude the amount of funds reserved for work request procedure from the value of the amount obligated by the contract.

(h) Include the following statement in the contract when funds are reserved by ACD as described in (f)(2) above: "Funds necessary for performance of effort that may be directed by work requests will be obligated on the work requests issued by the ACO. Funds in the amount of $___________ have been reserved for performance of such work. The dollar amount identified above is

for information only. The amount of funds stated above is not included in either the accounting and appropriation data cited on, or in the amount of the funds obligated by, this document. The ACO will obligate funds upon issuance of a work request ordering any of the efforts contemplated by this provision."

(i) Forward obligating documents to the accounting and finance office for recording before the work request issuance to the contractor. If more than one work request is issued for the same contract during a month, one obligating document consolidating the actions may be used.

(j) Only Contracting Officers will issue work requests. Only issue ACO issued work requests supporting test programs for efforts not requiring evaluation or approval at the buying organization. If program/project office approval must be obtained before direction can be given to the contractor, the office issuing the contract should direct the work initiation by the appropriate use of a supplemental agreement, change order, or work request.

(k) Before issuance of a work request, obtain a cost estimate for the work and put a firm price or not-to-exceed amount in the document. Either the administrative or buying office can negotiate definitization of unpriced work requests.

(l) AFMC Form 702/SF 30, Amendment of Solicitation/Modification of Contract shall be used for work requests. Mark the AFMC Form 702, in the first, third or fourth box of item 14 as appropriate. Include identification of the document as a work request in item 17. Use modifications code J in item 15A for work requests that are undefinitized. Code work requests that are fully definitized at time of issuance with code C in item 15A).

(m) Establish separate line items for each issued contract document (both definitive and undefinitive) authorizing work request(s), including blanket work requests. Two contract arrangements are possible:

(1) Over and above work is authorized in the contract under a contract line item. Following DFARS 204.71032 procedures, you must establish a new contract subline item by the contract document.

(2) Over and above work is authorized in the contract under a contract subline item. Following DFARS 204.7104-2 procedures, you must establish a new exhibit line item number by the contract document. The exhibit identifier will be determined in coordination with the contracting officer.

AFMCAC 96-2 15 February 1996 43.2-6

(n) Normally, negotiate the cost or price of the work request before issuance. However, if it is in the best interest of the Government not to delay performance of the work until the cost or price is agreed upon, the work request will specify that the contractor is authorized to proceed only up to the amount of the not-to-exceed value. Undefinitized work requests are managed the same as other undefinitized contract changes. Supplemental agreements definitizing work requests are coded M in item 15A of AFMC Form 702.

(o) The PCO shall insert the clause at 5352.243-9001, Work Requests (Severable), in section I in solicitations and contracts which use severable work requests, as defined in 5343.290-1(a) above.

AFMCAC 96-2 15 February 1996 45-i

PART 5345--GOVERNMENT PROPERTY

SUBPART 5345.1--GENERAL

Paragraph Title Page

5345.102 Policy. 45.1-1

5345.102-90 Contractor Acquired Property (CAP). 45.1-1

5345.106 Government property clauses. 45.1-1

5345.106-90 Base support. 45.1-1

SUBPART 5345.2--COMPETITIVE ADVANTAGE

5345.205-90 Solicitation requirements. 45.2-1

SUBPART 5345.3--PROVIDING GOVERNMENT PROPERTY

TO CONTRACTORS

5345.302 Providing facilities. 45.3-1

5345.302-91 Special facilities approvals. 45.3-1

5345.302-3 Other contracts. 45.3-1

5345.302-6 Required government property clauses 45.3-1

for facilities contracts.

5345.303 Providing material. 45.3-1

5345.303-2 Procedures. 45.3-1

5345.304-90 Providing motor vehicles to Government 45.3-1

contractors.

5345.306-2 Special tooling under cost reimbursement 45.3-1

contracts.

5345.306-5-90 Contract clause. 45.3-2

5345.307-2 Acquiring special test equipment. 45.3-2

5345.307-3-90 Contract clause. 45.3-2

5345.310 Providing agency-peculiar property. 45.3-2

5345.310-90 Maintenance and flight operations of aerospace 45.3-2

vehicles and related support equipment.

5345.310-91 Retention of special tooling and special test 45.3-2

equipment.

5345.310-92 Providing Government furnished information. 45.3-2

SUBPART 5345.4--CONTRACTOR USE AND RENTAL

OF GOVERNMENT PROPERTY

5345.403-90 Rental--use and charges clause. 45.4-1

5345.404-90 Rent-free use. 45.4-1

SUBPART 5345.6--REPORTING, REDISTRIBUTION, AND

DISPOSAL OF CONTRACTOR INVENTORY

5345.605-90 Application of forging industry tolerance 45.6-1

factor.

5345.606 Inventory schedules. 45.6-2

5345.606-5 Instruction for preparing and submitting 45.6-2

(e)(90) schedules for contractor inventory.

5345.608 Screening of contractor inventory. 45.6-2

5345.608-1 General. 45.6-2

5345.608-3 Agency screening. 45.6-2

5345.608-5 Special items screening. 45.6-3

5345.608-8 Report of excess personal property (SF 120). 45.6-3

5345.608-90 Screening of contractor reported on SF 1428. 45.6-3

5345.610-3 Proceeds of sale. 45.6-3

5345.612-3 Special storage at Government's expense. 45.6-4

AFMCAC 96-2 15 February 1996 45-ii

PART 5345--GOVERNMENT PROPERTY

SUBPART 5345.70--APPOINTMENT OF PROPERTY ADMINISTRATORS

AND PLANT CLEARANCE OFFICERS

5345.7001 Selection, appointment, and termination. 45.70-1

5345.7002 Duties and responsibilities of plant clearance 45.70-1

officers.

AFMCAC 96-2 15 February 1996 45.1-1

PART 5345--GOVERNMENT PROPERTY

SUBPART 5345.1--GENERAL

5345.102 Policy.

(c) Transferring government property to an Air Force contract requires approval authority above the PCO (see 5345.608-1).

5345.106 Government property clauses.

(b)(3) The contracting officer shall include a clause substantially the same as the clause at 5352.245-9001, Title to Equipment, in Section I of solicitations and contracts for basic or applied research with nonprofit educational institutions and nonprofit research organizations, when the contractor acquires equipment using contract funds and the unit acquisition cost is $5000 or more.

(f)(2) The contracting officer shall include a clause substantially the same as the clause at 5352.245-9001, Title to Equipment, in Section I of solicitations and contracts for basic or applied research with nonprofit educational institutions and nonprofit research organizations, when the contractor acquires equipment using contract funds and the unit acquisition cost is $5000 or more.

(h) The contracting officer shall insert a clause substantially the same as 5352.245-9003, “Contractor Responsibility for GFP”, and include FAR 52.245-19 in Section I of solicitations and contracts, when the government intends to accept delivery of specific contract line items or subline items at source and furnish the items back to the contractor as GFP for incorporation in a higher level assembly or end item to be delivered under the contract or for use in the performance of the remaining contract effort.

(i) If Government Furnished Property is to be furnished to a contractor and the use of MILSTRIP requisitioning procedures by the contractor is not contemplated, insert a clause substantially the same as 5352.245-9006, Government Furnished Property (GFP), in Section I of solicitations and contracts. Note: if the solicitation and contract contain an Appendix B, which provides detailed instructions pertaining to the management and control of GFP, the use of this clause is not necessary.

(j) Except as provided for by 5345.106(k), when contractors are authorized to requisition Government Furnished Property (GFP), insert a clause substantially the same as 5352.245-9015, Government Furnished Property/

Contractor Requisitioning, in Section I of solicitations and contracts. Note: if the solicitation and contract contain an Appendix B, which provides detailed instructions pertaining to the management and control of GFP, the use of this clause is not necessary.

(k) When contractors are authorized to requisition Government Furnished Property (GFP) to provide for necessary maintenance of other GFP also provided under the contract, insert a clause substantially the same as 5352.245-9016, Maintenance of Government Furnished Property, in Section I of solicitations and contracts. Note: if the solicitation and contract contain an Appendix B, which provides detailed instructions pertaining to the management and control of GFP, the use of this clause is not necessary.

(l) When the contract price includes a charge for certain materials or components, which will not be fully consumed into deliverable items, the contracting officer may include a clause substantially the same as 5352.245-9007, Disposition of Residual Government Property, in Section I of contracts.

AFMCAC 96-2 15 February 1996 45.1-2

5345.106-90 Base support.

(a) Except when base support actions would be ineffective or impractical or if similar alternative circumstances are otherwise provided by the contract (e.g., Contract Field Teams or Contract Engineering and Technical Support provisions), include a Base Support Clause similar to the one at 5352.245-9000 in all solicitations and contracts (including letter contracts) that involve the performance of work on site at Air Force installations, or at other sites where the Air Force has logistics support.

(b) If the contract is a cost, cost-reimbursement, time-and-materials, or labor hour contract, the clause with Alternate I, subparagraph (g), shall be used.

(c) If it is not possible to list government support in the contract before award, utilize the clause with Alternate II, subparagraph (f), if approved by the Buying Office Contracting Official.

(d) Using procedures similar to those in FAR 45.2. The PCO shall, to the maximum extent possible, eliminate competitive advantage accruing to a contractor receiving Government provided base support.

(e) If base support provisions are used, include in the contract file detailed documentation on the agreements covering the support provided at specified locations. Have written certification of the availability of the detailed support and services given to the contractor by the Commander or designated representative at the Air Force installation concerned.

(f) If base support is provided, assign property administration to the CAO where the work is performed. The PCO will request the cognizant ACO to

redelegate administration of the Base Support clause to the appropriate CAO no later than 90 days before the contractor's support need date.

(g) When the contractor formally advises the contracting office of inadequacies, defective government furnished property, or nonavailability of support, the PCO will determine the validity and extent of the deficiencies. Within 10 working days formally advise the contractor of Government corrective actions taken or of authorized contractor actions. The authority to approve

furnished items and to obtain unavailable support may also be delegated to the cognizant CAO.

(h) Contractors operating on government installations under the provisions of this base support clause may be authorized to obtain general purpose vehicles in accordance with AFMCFARS 5345.304-90. For supply contracts, do not give general purpose vehicles to contractors under this clause unless FAR 51.202 conditions are met and the vehicles total value is less than $100,000. The following conditions must be met:

(1) The RFP will require the contractor to propose the vehicles as contractor-furnished. Obtain an option for the Government to provide the vehicles. The PCO will conduct a trade study to determine which alternative is most cost-effective. Include the analysis in the price negotiation memorandum.

(2) Get HQ AFMC/LGT approval.

AFMCAC 96-2 15 February 1996 45.2-1

PART 5345--GOVERNMENT PROPERTY

SUBPART 5345.2--COMPETITIVE ADVANTAGE

5345.205-90 Solicitation Requirements.

(d) The contracting officer shall insert a provision substantially the same as 5352.245-9004, “Elimination of Competitive Advantage in the Use of Government Production and Research Property”, in Section L of solicitations, when offerors may propose or intend to use government owned property in the performance of the contract.

AFMCAC 96-2 15 February 1996 45.3-1

PART 5345--GOVERNMENT PROPERTY

SUBPART 5345.3--PROVIDING GOVERNMENT PROPERTY TO CONTRACTORS

5345.302 Providing facilities.

5345.302-3 Other contracts

Facilities contracts will not be used to support overseas maintenance contractors.

5345.302-6 Required Government property clauses for facilities contracts.

(e)(2) The contracting officer shall insert a clause substantially the same as the clause at 5352.245-9002, Title to Equipment (Facilities Use), in Section I of solicitations and contracts when a facilities use contract is contemplated and is for basic or applied research with nonprofit educational institutions and nonprofit research organizations, when the contractor acquires equipment using contract funds and the unit acquisition cost is $5000 or more.

(90) The contracting officer may insert a clause substantially the same as 5352.245-9005, “Authorization for the Acquisition or Fabrication of Facilities”, in Section I of cost type solicitations and contracts, when acquisition or fabrication of facilities on a contract other than a facilities contract has been authorized in accordance with DFARS 245.302-1. If industrial facilities are approved for a commercial contractor, the reimbursement of the cost of facilities acquired or fabricated shall be cost-

reimbursement with no fee.

5345.302-91 Special facilities approvals.

(a) AFR 78-22 provides additional information on requesting approval to acquire facilities, including vehicles, furniture, general purpose computers, hand held grinders, and other types of general purpose equipment when they do not meet the definitions of special test equipment, material, special tooling, or agency peculiar property. Requests to acquire facilities using R & D or procurement funds must be submitted through ASC/CEI.

(b) The contracting officer of the contract accountable for existing Air Force owned facilities must obtain the concurrence of ASC/CEI before approving the use of those facilities for contract performance. ASC/CEI approval must be obtained before transferring facilities to an AFMC contract. Exemptions to obtaining the concurrence or approval of ASC/CEI required in this subparagraph are as follows:

(i) O & M funded contracts where performance is primarily on a government installation.

(ii) Base level services contracts primarily performed on a government installation.

(iii) Federally Funded Research and Development Center contracts.

5345.303 Providing Material.

5345.303-2 Procedures.

(a) When contractors are authorized to use the Manual for Military Standard Requisitioning and Issue Procedure (MILSTRIP), provide for AFMCR 170-6 compliance in the contract.

AFMCAC 96-2 15 February 1996 45.3-2

5345.304-90 Providing motor vehicles to Government Contractors.

As required by AFFARS 5345.304-90, send a copy of the vehicle request to HQ AFMC/LGT. Additionally send a copy to ASC/CEI when it is planned to either furnish government owned vehicles or allow contractor acquisition of vehicles for the government.

5345.306-5 Contract Clause.

(90)(1) If existing Government-owned special tooling or test equipment is authorized to be provided to the contractor and a fixed price contract is contemplated, insert a provision substantially the same as 5252.245-9010, Evaluation of Bids/Proposals Including Use of Government Furnished Tooling or Test Equipment, in Section M of all solicitations. Note, in addition to this clause the appropriate Government Property clause(s) must be included in the contract.

(2) If special tooling and/or test equipment already accountable to the contractor under a contract are to be furnished to a contractor by the Government for use on another contract, insert the clause at 5252.245-9011, Use of Special Tooling/Special Test Equipment on a Non-Interference Basis, substantially as written, in Section I of all solicitations and contracts.

(3) If special tooling and/or test equipment is to be fabricated or acquired by the contractor under a fixed price contract, and the Government desires the option to provide the special tooling/test equipment to the contractor as GFP, insert a clause substantially the same as 5353.245-9013, Special Tooling/Special Test Equipment List, in Section I of solicitations and contracts.

(4) If existing special tooling will be provided to the contractor and other Government property clauses do not already provide necessary contractual coverage or if master tooling is included on the special tooling list, insert a clause substantially the same as 5352.245-9014, Government Furnished Tooling, in Section I of solicitations and contracts. If this clause is used the appropriate FAR Government property clause must also be included in the contract.

5345.307-2 Acquiring special test equipment.

(b) Upon notice of contractor intent to acquire or fabricate Special Test Equipment (STE), the contracting officer will obtain a written determination from a technical evaluator that the property is correctly classified before allowing the contractor to acquire or fabricate the equipment as STE. Follow the same classification procedures used for ST in 5345.306-2(d) above for STE.

5345.307-3 Contract Clause.

(90) If special test equipment is to be fabricated by the contractor for the Government but a CLIN has not been established for this equipment, insert a clause, substantially the same as 5352.245-9012, Special Test Equipment, in Section I of solicitations and contracts.

5345.310 Providing agency-peculiar property.

Control loans of samples to prospective contractors in accordance with the procedures specified in AFM 67-1, Volume I, Part One, Chapter 10, Section N.

AFMCAC 96-2 15 February 1996 45.3-3

5345.310-90 Maintenance and flight operations of aerospace vehicles and related support equipment.

(c)(10) Manage, acquire, control, maintain and dispose of according to AFMCR 66-24, all contracts in which common powered and nonpowered support equipment is furnished to a contractor for use on an AFMC installation with active runways. Further specify in each contract that this requirement will govern in case of conflict with any other maintenance needs. Coordinate any deviations to this policy with ASC/ENO(AW), Wright-Patterson AFB OH 45433, and HQ AFMC/LGM.

5345.310-91 Retention of special tooling and special test equipment.

(a) Upon termination or completion of a contract under which the Government has obtained title to or the right to acquire title to special tooling or special test equipment, the contracting activity shall review the Government's need for its continued retention.

(b) Do not include facility items, as defined in FAR 45.301, in a storage contract except as components of the special test equipment or special tooling, or as provided in AFR 78-17.

5345.310-92 Providing Government Furnished Information

The Contracting Officer may insert a clause substantially the same as 5352.245-9017, Government Furnished Information, in Section I of solicitations and contracts, which contemplate providing Government Furnished Information (in any medium) to the contractor.

AFMCAC 96-2 15 February 1996 45.4-1

5345--GOVERNMENT PROPERTY

SUBPART 5345.4--CONTRACTOR USE AND RENTAL OF GOVERNMENT PROPERTY

5345.403-90 Rental--Use and Charges clause.

If government-owned property will be furnished to the contractor on a rental basis, insert the clause at 5352.245-9009, substantially as written, in Section I of solicitation and contracts.

5345.404-90 Rent-free use.

If government-owned property (including facilities) will be furnished to the contractor on a rent-free basis, insert the clause at 5352.245-9008, substantially as written, in Section I of solicitation and contracts

AFMCAC 96-2 15 February 1996 46-i

PART 5346--QUALITY ASSURANCE

SUBPART 5346.2--CONTRACT QUALITY REQUIREMENTS

Paragraph Title Page

5346.202-3 Higher-level contract quality requirements. 46.2-1

SUBPART 5346.3--CONTRACT CLAUSES

5346.370 Material Inspection and Receiving Report. 46.3-1

(OMB No. 0704-0248)

SUBPART 5346.4--GOVERNMENT CONTRACT QUALITY ASSURANCE

5346.401 General 46.4-1

5346.407 Non-conforming supplies or services. 46.4-1

SUBPART 5346.5--ACCEPTANCE

5346.504 Certificate of conformance. 46.5-1

SUBPART 5346.7--WARRANTIES

5346.770 Use of warranties in weapon system procurements. 46.7-1

5346.770-2 Policy. 46.7-1

5346.770-3 Tailoring warranty terms and conditions. 46.7-1

5346.770-5 Exemption for alternate source. 46.7-1

5346.770-7 Cost-Benefit Analysis (CBA). 46.7-1

5346.770-8 Waivers and notification procedures. 46.7-1

5346.770-90 Air Force warranty procedures. 46.7-2

5346.770-91 Establishing Essential Performance Requirements 46.7-2

(EPRs).

5346.770-92 Deleted. 46.7-3

AFMCAC 96-2 15 February 1996 46.4-1

PART 5346--QUALITY ASSURANCE

SUBPART 5346.4--GOVERNMENT CONTRACT QUALITY ASSURANCE

5346.401 General

(90) When multiple inspection and acceptance sites may be necessary, insert a clause substantially the same as 5352.246-9002 Inspection and Acceptance, in Section E of solicitations and contracts, tailored as appropriate.

5346.407 Non-conforming supplies or services.

(a)(1) Approve waivers and deviations only when it is in the government's best interest to accept the specified nonconforming item(s). When approved, waivers and deviations give the contractor relief from specific technical requirements for those accepted items.

(2) Do not routinely approve waivers or deviations for the sole purpose of avoiding delinquent deliveries.

(3) Do not waive, tailor, or relax FAR 46.407 requirements for waiver and deviation approval processing and MIL-STD-480 for DD Form 1694, Request for Deviation/Waiver, preparation processing, without prior HQ AFMC/ENE approval.

(4) Do not use deviations or waivers for the processing of correction of deficiencies. Do not use the DD Form 1694 for any purpose (i.e., ship shorts) except the processing of waiver or deviation requests.

(5) Do not approve a waiver or deviation in any event that releases the contractor from responsibility for complying with the weapon system warranty legislative requirements without a Secretarial warranty waiver.

(c)(1)(ii) Obtain from the ACO a cost estimate with adequate cost detail and rationale to support consideration estimates on DD Form 1694s. Also obtain an analysis of the request for major waiver/deviation to determine (1) the technical adequacy of the contractor's proposal, (2) the impact of the proposed waiver or deviation on any existing weapon system warranty, (3) the adequacy of consideration proposed by the contractor, if any, and (4) that approval of the contractor's deviation or waiver request is in the government's interest. The PCO will specify the various evaluation factors to determine adequacy of the proposed consideration (e.g., government labor costs, lowered specifications, contractor savings and so forth).

(f)(1) Until a modification is executed, the PCO will temporarily withhold from the contractor the estimated amount of consideration applicable to the waiver/deviation.

(2) Clearly identify and separate amounts withheld as consideration for waiver or deviation approval, when reported, from other types of actions such as progress payment reductions or suspensions, billing reductions for defective hardware deliveries, or temporary withholdings pending the correction of deficiencies. The PCO must obtain adequate cost detail or rationale to support consideration estimates on the DD Form 1694.

(90) It may be in the best interest of the Government during the performance of a contract to accept supplies and associated services with known deficiencies or to accept supplies and associated services before determination that contract compliance has been met. Before accepting nonconforming supplies, the CO must make a written determination that it is in the best interest of the Government to do so. Comply with the following in developing that determination:

(1) before acceptance make a thorough analysis to determine:

(i) if actions are appropriate under any other contract clauses including; “Default,” “Warranty,” or “First Article Test;”

(ii) the probability that the contractor will attain the requirements of the specification during the performance of the contract;

(iii) the practicality and desirability of correcting the deficiency by an in-service modification performed at some later date during contract performance;

AFMCAC 96-2 15 February 1996 46.4-2

(iv) the degree of risk being assumed by the Government in those cases where contract compliance has not been established due to incomplete or unsuccessful testing;

(v) if higher level approval or other authority may be required by other directives before accepting nonconforming supplies or services;

(2) If it is determined that the contractor will be unable to achieve the specification requirements and that reduced or relaxed requirements are acceptable to the Government, incorporate into the contract a revised specification which describes the performance requirements which are acceptable to the Government. Negotiate adequate consideration for the reduction in specification requirements for all delivered and undelivered items.

(3) If the contract specification requirements are believed to be attainable during subsequent performance of the contract, the CO, with appropriate assistance from technical personnel, will determine the practicability and desirability of an in-service modification. If an in-service modification is determined to be in the best interest of the Government, the CO will establish with the contractor the number of items to be offered for acceptance which will be subject to modification.

(i) Contract modifications approving deviations for in-service modifications will (A) specify the terms of the deviation approval, (B) direct the contractor to furnish kits for government or contractor on-site installation or commit the Government to return the items to the contractor’s plant for rework, (C) state whether contractor or government personnel will accomplish the rework, (D) include an approved schedule for furnishing of the kits or returning the items to the contractor’s plant, as applicable, (E) provide that acceptance of the items by the Government does not relieve the contractor of the contractual responsibility to meet contract requirements for all items at no increase in price, and (F) include adequate consideration for the reduction of any work authorized by the deviation approval, specifically including any rework accomplished by the Government.

(ii) If the Government decides that an in-service modification is not in its best interest, the contract modification will (i) relieve the contractor of responsibility to correct the deficiency, and (ii) provide for adequate consideration for the reduction in work.

(4) If the Government decides to accept supplies before successful completion of all the required tests and inspections and, therefore, contract compliance has not been determined, acceptance will be conditional as follows:

(i) The contract modification will specify: (A) that government acceptance does not relieve the contractor of any responsibility to meet contract requirements; (B) that if rework and/or replacement of parts are necessary, the contractor agrees to perform such rework or furnish and replace such parts at a site and date as agreed upon between the parties; (C) the specific tests and inspections that have not been satisfactorily completed; (D) and that upon satisfactory completion of tests and inspections, the contractor will notify the CO, in writing, of any and all changes required to the delivered items along with proposed method(s), date(s), and location to accomplish the rework and/or parts replacement. All of the above will be done at no increase in contract price.

(ii) If the contractor notifies the Government that changes are required and the Government decides it is not in its best interest to make those changes, negotiate adequate consideration for the associated reduction in work and modify the contract accordingly.

(5) In addition to the specific information required above, include in contract modifications (i) an amount the Government will withhold from the payment of the contract price of the items until all work is completed, (ii) the right to negotiate an adequate credit for work not performed if the Government later relieves the contractor of the obligation, and (iii) whether the contractor or the Government will bear additional transportation costs.

AFMCAC 96-2 15 February 1996 46.4-3

(6) If there is potential that the Government may accept supplies with known deficiencies or that it may be necessary to accept items before completion of lengthy testing it may be advisable to include a clause similar to 5352.246-9001, Correction of Supplies Accepted with Deficiencies, in Section E unless other clauses such as the Warranty clause provide for remedies.

(7) When determining adequate consideration for contract modifications, consider the following, as appropriate: (i) cost of the contractor to perform the remaining work necessary to correct the noted deficiencies; (ii) loss of value to the Government due to reduced item reliability, increased life cycle cost, or reduced availability; (iii) consideration for extending delivery schedules; (iv) any other factors which may impact Government use or cost of ownership of the affected items.

(8) The CO will maintain records of all delivered items which require (or may require) in-service modification.

(91) When it is in the best interest of the Government to accept services, research and/or development, associated reports, and other study reports which do not conform to contract requirements and AFMAN 64-108 is not applicable, the CO will:

(1) Establish the degree of nonconformity with the assistance of appropriate technical personnel.

(2) Notify the contractor, in writing, that the services performed or the reports furnished did not conform to contract requirements. The written notification will include at least the following information:

(i) the requirements of the work statement with which the contractor did not fully comply;

(ii) any corrective actions which must be complied with before acceptance;

(iii) the reason(s) for the Government’s decision to accept the services or reports short of full compliance, i.e., additional cost (in the case of a cost-reimbursement type contract), type delay, impossibility of re-performance on the part of the contractor as could be the case in some service-type contracts, etc.;

(iv) request a credit proposal, as appropriate, so that a contract modification may be issued to authorize acceptance of the services, research and/or development, or reports with the deviations as specified.

(3) Negotiate appropriate consideration or downward equitable adjustment and modify the contract to authorize acceptance of the services or reports with specifically listed non-conformances.

AFMCAC 96-2 15 February 1996 46.7-3

(c) The program director shall determine if the originally established and approved EPRs are still appropriate for follow-on production buys. Over time it may be prudent to adjust or change some EPRs. If EPRs need to be changed, send the new EPR determination and recommendation to the original approval authority for reapproval. The contract file for a followÄon shall have the:

(1) Program director's determination; and

(2) Relevant previously granted EPR approval, if the program director determines the EPRs are still appropriate; or

(3) PEO or center commander/vice commander/executive director approval.

5346.770-92 Deleted.

AFMCAC 96-2 15 February 1996 47-i

PART 5347--TRANSPORTATION

SUBPART 5347.3--TRANSPORTATION IN SUPPLY CONTRACTS

Paragraph Title Page

5347.303-4 F.O.B. Origin, freight prepaid 47.3.1

5347.305 Solicitation provisions, contract clauses, and 47.3-1

transportation factors.

5347.305-7 Quantity analysis, direct delivery and reduction of 47.3-1

crosshauling and backhauling.

5347.305-10 Packing, marking, and consignment instructions. 47.3-1

5347.373 DD Form 1654, Evaluation of Transportation Cost 47.3-2

Factors.

AFMCAC 96-2 15 February 1996 47.3-1

PART 5347TRANSPORTATION

SUBPART 5347.3TRANSPORTATION IN SUPPLY CONTRACTS

5347.303-4 F. O. B. Origin, Freight Prepaid.

(c)(90)(i) The contracting officer shall insert the clause at 5352.247-9000, F. O. B. Origin, Freight Prepaid, in Section F, “Deliveries or Performance”, of the solicitation and contract when the contracting officer and transpor-tation office determine that it is in the best interest of the Government to have the shipment(s) made using prepaid freighting charges (e.g., origin of shipment is Canada). If the contractor cannot obtain rates equal to or better than those available to the U.S. government, the contractor will contact the contracting officer for verification to proceed with prepaid freight.

(ii) The contracting officer shall insert the clause at 5352.247-9001, F. O. B. Origin, Transportation Instructions, in Section F, “Deliveries or Performance,” of the solicitation and contract when the contract transpor-tation administration is to be retained by the contracting office with the concurrence of the transportation office.

5347.305 Solicitation provisions, contract clauses, and transportation factors.

5347.3057 Quantity analysis, direct delivery and reduction of crosshauling and backhauling.

(a) Quantity analysis of deliveries specified on the PR/MIPR will be accomplished by the appropriate Traffic Management Office (TMO) during the PR coordination cycle before release to Procurement. If subsequent delivery increment quantity changes are proposed, an additional analysis will be made by the TMO.

5347.30510 Packing, marking, and consignment instructions.

(a)(90)(1) For those field activities with the capability, and where the "ship to" is unknown at the time of award, shipping instructions shall be provided through contract modifications. These shipping instructions shall identify shipping destinations in accordance with the Department of Defense Activity Address Directory (DODAAD) or Military Assistance Program Address Directory (MAPAD) codes assigned. Telephone, teletype, or telegram shipping instructions issued pursuant to FAR 47.30510(c) shall be confirmed through a contract modification.

(a)(90)(2) All AFMC activities except operational contracting shall use AFMC Form 158/158a, Packaging Requirements, to specify required packing instructions. Those activities with ACPS may include the information on the AFMC Form 158/158a verbatim in the solicitation/contract.

(91) Consignment and Marking Instructions for Shipment of Foreign Military Sales (FMS) Material. The following data is required as a minimum:

(1) "Ship to" Military Assistance Program Address Code (MAPAC).

(2) "Mark for" MAPAC.

(3) MILSTRIP requisition number.

(4) MILSTRIP supplemental address.

(5) Issue Priority Designator.

The above information will be shown on the PR and the resulting contracts/orders. The complete intheclear address for the assigned

MAPACs will be provided by the cognizant transportation office named in the contract, or the appropriate transportation office at the requiring activity when the material is available for shipment. InTheClear addresses will not be printed in the contracts/orders for the MAPACs because they are subject to frequent change. When contracts/orders indicate shipping points outside of CONUS, the requiring activity will assure that shipping instructions conform to the negotiated delivery conditions.

AFMCAC 96-2 15 February 1996 90-i

PART 5390--CONTRACTING SUPPORT FOR SPECIFIC AIR FORCE ACQUISITIONS

SUBPART 5390.90--ACQUISITION OF PETROLEUM AND PROPELLANTS

(AIRCRAFT AND MISSILES)

Paragraph Title ` Page

5390.9001 Solicitation provisions and contract clauses 90.90-1

AFMCAC 96-2 15 February 1996 90.90-1

PART 5390--CONTRACTING SUPPORT FOR SPECIFIC AIR FORCE ACQUISITIONS

SUBPART 5390.90--ACQUISITION OF PETROLEUM AND PROPELLANTS

(AIRCRAFT AND MISSILES)

5390.9001 Solicitation provisions and contract clauses.

(a) Transportation Considerations. The contracting officer shall insert a clause substantially the same as the clause prescribed below in Section I of solicitations and contracts as required for type of propellant being acquired:

(1) 5352.290-9000, Delay and Standby Time. (When transportation of the product will be by tank truck or trailer.) Fill-ins to be completed in the solicitation by the government.

(2) 5352.290-9001, Measurement and Computation. (When tare weight of the transportation container is required.) Fill-ins to be completed in the solicitation by the government.

(3) 5352.290-9002, Measurement and Computation -- Cryogenic Liquids. (When tare weights for cryogenic liquid containers is required.)

(4) 5352.290-9003, Dewar Rental. (When transportation of the product will require use of contractor furnished Dewars.) All fill-ins to be completed in solicitation by the government, except paragraph (f) which the contractor will insert replacement value.

(5) 5352.290-9004, Contractor Seals Requirement. (When shipment in sealed containers will be required.)

(b) Special Inspection Consideration. The contracting officer shall insert a clause substantially the same as the clause prescribed below in solicita-tions and contracts, as required:

(1) 5352.290-9005, Inspection and Acceptance -- Propellants - Section E.

(2) 5352.290-9006, Inspection and Calibration Procedures - Section I.

(3) 5352.290-9009, Special Distribution Instruction for Material Inspection and Receiving Reports (DD Forms 250)(Fuels) - Section E. (Use in all solicitations/contracts for propellants.) Fill-ins to be completed in the solicitation by the government.

(c) FOB and Delivery Considerations. The contracting officer shall insert a clause substantially the same as the clauses prescribed below in Section F of solicitations and contracts, as required:

(1) 5352.290-9007, Fill Points. Fill-ins to be completed in the solicitation by the government.

(2) 5352.290-9008, Delivery Schedules. Fill-ins to be completed in the solicitation by the government.

(d) Other Considerations. The contracting officer shall insert a clause/provision substantially the same as the clause/provision prescribed below in Section I of solicitations and contracts for 5352.290-9010, 5352.290-9011, 5352.290-9013 and in Section L of solicitations for 5352.290-9012, as required:

(1) 5352.290-9010, Blanket Delivery Order. (Use in all delivery orders for propellants.) Fill-ins to be completed in the solicitation by the government.

(2) 5352.290-9011, Implementation of Economic Price Adjustments. (Use in solicitations/contracts that contain economic price adjustments.) Contractor fill-in as stated in clause.

AFMCAC 96-2 15 February 1996 90.90-2

(3) 5352.290-9012, Contract Ordering Period. (Use in requirements solicitations for propellants when the ordering period cannot be established at time of solicitation.) Fill-ins to be completed in the solicitation by the government.

(4) 5352.290-9013, Gas Standard Certificate of Traceability. (Use in all solicitations/contracts for gasses and gas detectors.)

AFMCAC 96-2 15 February 1996 92-i

PART 5392--AFMC MAINTENANCE, OVERHAUL AND

MODIFICATION CONTRACTING

Paragraph Title Page

5392.000 Scope. 92.0-1

5392.001 Definitions. 92.0-1

SUBPART 5392.1--CLAUSES

5392.101 General. 92.1-1

5392.102 Required provisions/clauses. 92.1-1

5392.103 Additional provisions/clauses. 92.1-1

SUBPART 5392.2--SOLICITATION EVALUATION PROCEDURES

5392.201 General. 92.2-1

5392.202 Application. 92.2-1

5392.203 Deleted. 92.2-1

5392.203-90 Provisions and clauses. 92.2-1

SUBPART 5392.3--AIRCRAFT MOD/PDM AND ENGINE

OVERHAUL PROGRAMS

5392.301 General. 92.3-1

5392.302 Multiple Year Contracting Methodology. 92.3-1

5392.302-1 Application. 92.3-1

5392.302-2 Contracting Technique. 92.3-1

5392.302-3 Contract Type. 92.3-1

5392.303 Source Selection Procedures. 92.3-1

5392.304 Clauses. 92.3-2

SUBPART 5392.4--AFMC FIVE YEAR POLICY

5392.401 Purposes. 92.4-1

5392.402 Definition. 92.4-1

5392.403 Approvals. 92.4-1

5392.404 Restrictions. 92.4-1

5392.405 Criteria. 92.4-1

5392.406 Contracting methods. 92.4-2

5392.407 Lead time planning. 92.4-2

5392.408 General instructions. 92.4-3

5392.409 Pricing/Evaluation. 92.4-3

5392.410 Follow-on requirements. 92.4-4

5392.411 Clauses. 92.4-4

SUBPART 5392.5--CONTRACTOR FIELD TEAM (CFT) PROGRAM

5392.501 General. 92.5-1

5392.502 CFT contracting procedures. 92.5-1

5392.502-1 Responsibility. 92.5-1

5392.502-2 Basic CFT contracts. 92.5-1

AFMCAC 96-2 15 February 1996 92.1-2

Industrial Fund (DMIF) contracts containing a requirement for a Government-Furnished Material (GFM) report (GFM reporting may be by either the manual report on AF Form 412, Report of Government Furnished Material, or the mechanized GFM Transaction Reporting System, G009). In order to cancel the charge made to DMIF when the parts are requisitioned, the consideration for permitting such requisitioning should be equivalent to the cost of those parts. The ACO will ensure that Contractor requests for permission to requisition replacement parts contain the quantity and unit price, as specified in current Federal Supply Catalogs, of each item to be requisitioned. Upon receipt of such parts, the contractor will deduct such credits from invoices submitted under the contract. The ACO will maintain a log of Contractor requests and will use the data submitted in those request to follow up and verify the accuracy of contractor credits to invoices. The PCO shall insert the clause at 5352.292-9005 in Section H of all solicitations and contracts for maintenance of Air Force equipment in overseas locations.

(g) The clause at 5352.292-9008, Drop-In Maintenance, will be used in Section H of aircraft PDM contracts when the SOW and purchase request require this effort. An over and above line item shall be established to facilitate this work with nominal funding.

(h) The contracting officer shall insert a clause substantially the same as the clause at 5352.292-9010, End Items Beyond Economical Repair, in Section I of all solicitations and contracts for overhaul or repair when Government Furnished Material (GFM) or Contractor Acquired Property (CAP) are authorized.

(i) The contracting officer may insert the clause at 5352.292-9011, Delay of Aircraft Input, substantially as written, in Section F of solicitations and contracts for programmed depot maintenance/maintenance/modification of aircraft, when it is deemed appropriate to delay input of aircraft if, for any reason, output of aircraft is delayed.

AFMCAC 96-2 15 February 1996 92.2-1

PART 5392--AFMC MAINTENANCE, OVERHAUL AND MODIFICATION CONTRACTING

SUBPART 5392.2--SOLICITATION EVALUATION PROCEDURES

5392.201 General.

This subpart describes procedures for use of an "over and above" factor in the evaluation of maintenance, overhaul, repair and modification proposals.

5392.202 Application.

(a) All solicitations for maintenance, overhaul, repair and modification effort which include work request provisions for "over and above" effort on other than a fixed-price basis, the contracting officer will insert the provision at 5352.292-9009, Evaluation of Over and Above Work.

work.

will be multiplied by the quoted hourly rates and used for evaluation.

furnished for evaluation purposes only and are not intended to guarantee that the man-hours used for evaluation will actually be experienced or that they represent minimum or maximum quantities for any resulting contract.

(b) The man-hour estimates to be used for evaluation will be determined by the requirements office, and should be based on a consideration of all factors including previous organic and contractor experience.

5392.203-90 Provisions and Clauses.

(a) The contracting officer may include the provision 5352.292-9012, Evaluation of Offers in all maintenance, overhaul, repair and modification indefinite quantity and requirements solicitations that include a Best Estimated Quantity (BEQ).

(b) The contracting officer may include the provision 5352.292-9013, Evaluation of Offers - Movement of Government Furnished Property in all solicitations when the cost associated with relocating GFP from the incumbent contracts facility will be evaluated.

(c) The contracting officer may include the provision 5352.292-9014, Evaluation of Offers - Transportation Cost in all maintenance, overhaul, and repair solicitations when transportation cost will be evaluated based on multiple points of generation.

AFMCAC 96-2 15 February 1996 93-i

PART 5393--FOREIGN DISCLOSURE REVIEWS

Paragraph Title Page

5393.000 Scope of part. 93.0-1

5393.001 Policy. 93.0-1

5393.002 Applicability. 93.0-1

5393.003 Procedures. 93.0-1

5393.004 Provisions and Clauses. 93.0-2

AFMCAC 96-2 15 February 1996 93.0-1

PART 5393--FOREIGN DISCLOSURE REVIEWS

5393.000 Scope of part.

This subpart establishes policy regarding the performance of foreign disclosure reviews before the release of information in conjunction with the acquisition of all supplies and services regardless of dollar value.

5393.001 Policy.

National Disclosure Policy (NDP-1) and AFI 16-201, Disclosure of Military Information to Foreign Governments and International Organization with AFMC Supplement 1, require a designated Foreign Disclosure Officer (FDO) to authorize the release or denial of classified and export-controlled unclassified, including sensitive unclassified, information to foreign governments and foreign nationals, including firms under foreign ownership, influence, or control, even if the firm has been granted a reciprocal industrial security facility clearance.

5393.002 Applicability.

(a) FDO review applies to:

(1) All acquisitions requiring disclosure of classified or export-controlled unclassified, including sensitive unclassified, information in order for a contractor to submit an offer or perform a contract. Examples are acquisitions involving Statements of Work (SOWs), Statements of Objectives (SOOs), specifications, government property, technical orders, engineering drawings, computer hardware and software, and any information, equipment, or media involving storage, retrieval, processing, or transmission of information.

(2) SOWs, SOOs, task orders, or any other documents for contracts to be issued by U.S. contracting offices pertaining to work to be accomplished by U.S. nationals/foreign nationals for the AFMC Foreign Liaison Officers.

(3) FMS contracts requiring the transfer of USAF technical data outside the control of the USAF/U.S. Government, whether the work is being performed in the CONUS or overseas.

(b) Exemptions to FDO review must be specifically established by Public Law or DoD Appropriations Acts.

5393.003 Procedures.

(a) The program office/requiring activity must obtain a disclosure decision from the FDO to provide to the contracting officer, including the following documentation/information, as applicable:

(1) AFMC Form 191 (formerly AFMC Form 1027), Foreign Disclosure Decision Worksheet, with distribution statements (AFI 61-204, Disseminating Scientific and Technical Information).

(2) A purchase request or other initiating document, SOW, SOO, task order, or other approved document. Include with these an Engineering Data List, AFMC Form 762 or equivalent, with distribution codes; a Defense Investigative Service Clearance; and a DD Form 254, Security Requirements Checklist, as applicable, and a release recommendation.

(b) The contracting officer must ensure that FDO review has been accomplished upon receipt of a purchase request, or other initiating document, for the requirements listed in 5393.002(a). If FDO review has not been accomplished, the contracting officer must notify the program office/requiring activity:

(1) Before synopsizing or soliciting the requirement. If synopsis or public display is authorized in writing by the installation commander prior to completion of the FDO review, the synopsis and solicitation shall advise potential offerors that the review has not been accomplished and that responses to requests for copies of the solicitation will be held pending the review. Solicitation issue date and closing date shall be adjusted to allow for completion of the review and adequate solicitation response time.

AFMCAC 96-2 15 February 1996 93.0-2

(2) Whenever foreign interest is expressed in a current or planned acquisition, including receipt of an unsolicited proposal.

(c) Local FDOs may approve foreign participation in the acquisition without further review in the following situations:

(1) A program, project, or specific acquisition basis.

(i) The local FDO will inform the program office or requiring activity when foreign participation is allowed. All synopses and the solicitation shall state if foreign participation is permitted.

(ii) When FDO review allows foreign participation for Ballistic Missile Defense Organization (BMDO) acquisitions, the contracting officer shall forward a copy of the solicitation to that office and the Washington embassies of the MOU countries: the United Kingdom, Germany, Italy, Israel, and Japan.

(2) Individual or classes of purchase requests or initiating documents which do not require FDO review when they meet one of the following criteria:

(i) There is no export controlled data involved.

(ii) There is export controlled data involved but the award will be made to a U.S. firm as the sole source contractor and there will be no foreign subcontracting.

(iii) The item is a repeat buy under a purchase request or initiating document that is identical to the acquisition previously approved the FDO.

(d) When the local FDO excludes or places limitations on foreign participation, the FDO shall send copies of the review package, including the completed AFMC Form 191, the SOW, and an explanation of the restrictions to the SAF/IADV for review and comment. Allow at least 10 working days after receipt for processing. If SAF/IADV comments are not provided by the scheduled date, the contracting officer may proceed with the local FDO decision. The contracting officer must insert a statement in the solicitation describing the restriction to full and open competition, such as limiting foreign participation to the subcontractor level.

(e) The FDO may review only those acquisitions for which foreign interest has been expressed but the goal is that all reviews are done prior to the synopsis. Reviews after the synopses should only be done when the FDO is unable to meet the demands of the workload at the installation and with the written approval of the installation commander, PEO, or DAC, as applicable. An appropriate notice advising potential offerors of the status of the review shall be included in the synopses and public display copy of the solicitation.

(f) None of the above pre-solicitation review exceptions apply to BMDO acquisitions. All BMDO acquisitions require 100 percent pre-solicitation review.

5393.004 Provisions and Clauses.

Use the following provisions and clauses, substantially as written, when the criteria at 5393.002 apply:

(a) Foreign Disclosure Review Notice. The contracting officer shall insert the notice at 5352.293-9000, Foreign Disclosure Review Notice, in Section L of all solicitations issued prior to completion of the Foreign Disclosure Review.

(b) Qualification of Offeror Under Export Controlled Restricted Solicitations. The contracting officer shall insert the provision at 5352.293-9001, in Section L of all solicitations issued prior to completion of the Foreign Disclosure Review and all solicitations when the review is completed and involves controlled access information.

(c) Foreign Nationals - Foreign Sources. The contracting officer shall insert the clause at 5352.293-9002, Foreign Nationals - Foreign Sources, in Section I of all solicitations and contracts when the acquisition involves export controlled data. The contracting officer may modify the clause in accordance with 5393.003(d) when appropriate. Alternate 1, paragraph (d) shall be added to the contract when the award is to be made to a foreign-owned, operated, or controlled company.

AFMCAC 96-2 15 February 1996 93.0-3

(d) Visit Requests by Foreign-Owned or Controlled Firms. The contracting officer shall insert the clause at 5352.293-9003, Visit Requests by Foreign-Owned or Controlled Firms, in Section I of the solicitation and contract when a foreign source (foreign-owned, operated, or controlled company) is considered a potential source and when a foreign source is awarded a contract.