Previous PageTable Of ContentsDFARS Home PageNext Page

DFARS 215



Part 215—Contracting By Negotiation

TABLE OF CONTENTS

(Revised October 30, 2015)

SUBPART 215.1— SOURCE SELECTION PROCESSES AND TECHNIQUES

215.101 Best value continuum.

215.101-70 Best value when acquiring tents or other temporary structures

SUBPART 215.2—SOLICITATION AND RECEIPT OF PROPOSALS AND

215.203-70 Requests for proposals – tiered evaluation of offers.

215.209 Solicitation provisions and contract clauses.

215.270 Peer Reviews.

SUBPART 215.3—SOURCE SELECTION

215.300 Scope of subpart.

215.303 Responsibilities.

215.304 Evaluation factors and significant subfactors.

215.305 Proposal evaluation.

215.306 Exchanges with offerors after receipt of proposals.

215.370 Evaluation factor for employing or subcontracting with members of the Selected Reserve.

215.370-1 Definition.

215.370-2 Evaluation factor.

215.370-3 Solicitation provision and contract clause.

215.371 Only one offer.

215.371-1 Policy.

215.371-2 Promote competition.

215.371-3 Fair and reasonable price.

215.371-4 Exceptions.

215.371-5 Waiver.

215.371-6 Solicitation provision.

SUBPART 215.4—CONTRACT PRICING

215.402 Pricing policy.

215.403 Obtaining certified cost or pricing data.

215.403-1 Prohibition on obtaining certified cost or pricing data (10 U.S.C. 2306a and 41 U.S.C. chapter 35).

215.403-3 Requiring data other than certified cost or pricing data.

215.403-5 Instructions for submission of certified cost or pricing data and data other than certified cost or pricing data.

215.404 Proposal analysis.

215.404-1 Proposal analysis techniques.

215.404-2 Data to support proposal analysis.

215.404-3 Subcontract pricing considerations.

215.404-4 Profit.

215.404-70 DD Form 1547, Record of Weighted Guidelines Method Application.

215.404-71 Weighted guidelines method.

215.404-71-1 General.

215.404-71-2 Performance risk.

215.404-71-3 Contract type risk and working capital adjustment.

215.404-71-4 Facilities capital employed.

215.404-71-5 Cost efficiency factor.

215.404-72 Modified weighted guidelines method for nonprofit organizations other than FFRDCs.

215.404-73 Alternate structured approaches.

215.404-74 Fee requirements for cost-plus-award-fee contracts.

215.404-75 Fee requirements for FFRDCs.

215.406-1 Prenegotiation objectives.

215.406-3 Documenting the negotiation.

215.407-2 Make-or-buy programs.

215.407-3 Forward pricing rate agreements.

215.407-4 Should-cost review.

215.407-5 Estimating systems.

215.407-5-70 Disclosure, maintenance, and review requirements.

215.408 Solicitation provisions and contract clauses.

215.470 Estimated data prices.

SUBPART 215.5—PREAWARD, AWARD, AND POSTAWARD NOTIFICATIONS, PROTESTS, AND MISTAKES

215.503 Notifications to unsuccessful offerors.

215.506 Postaward debriefing of offerors.

(Removed January 23, 2006)

SUBPART 215.1— SOURCE SELECTION PROCESSES AND TECHNIQUES

(Added February 28, 2013)

215.101 Best value continuum.

215.101-70 Best value when acquiring tents or other temporary structures.

SUBPART 215.2—SOLICITATION AND RECEIPT OF PROPOSALS AND INFORMATION

(Revised September 20, 2011)

215.203-70 Requests for proposals – tiered evaluation of offers.

215.209 Solicitation provisions and contract clauses.

215.270 Peer Reviews.

Agency officials shall conduct Peer Reviews in accordance with 201.170.

SUBPART 215.3--SOURCE SELECTION

(Revised May 10, 2016)

215.300 Scope of subpart.

Contracting officers shall follow the principles and procedures in Director, Defense Procurement and Acquisition Policy memorandum dated April 1, 2016, entitled “Department of Defense Source Selection Procedures,” when conducting negotiated, competitive acquisitions utilizing FAR part 15 procedures. See PGI 215.300.

215.303 Responsibilities.

215.304 Evaluation factors and significant subfactors.

See DoD Class Deviation 2013-O0018, Past Performance Evaluation Thresholds and Reporting Requirements, issued on September 24, 2013, which updates the DoD thresholds for evaluating a contractor’s past performance in source selections for competitive acquisitions. This deviation is in effect until incorporated into the DFARS or otherwise rescinded.

215.305 Proposal evaluation.

215.306 Exchanges with offerors after receipt of proposals.

215.370 Evaluation factor for employing or subcontracting with members of the Selected Reserve.

215.370-1 Definition.

“Selected Reserve,” as used in this section, is defined in the provision at 252.215-7005, Evaluation Factor for Employing or Subcontracting with Members of the Selected Reserve.

215.370-2 Evaluation factor.

In accordance with Section 819 of the National Defense Authorization Act for Fiscal Year 2006 (Pub. L. 109-163), the contracting officer may use an evaluation factor that considers whether an offeror intends to perform the contract using employees or individual subcontractors who are members of the Selected Reserve. See PGI 215.370-2 for guidance on use of this evaluation factor.

215.370-3 Solicitation provision and contract clause.

215.371 Only one offer.

215.371-1 Policy.

It is DoD policy, if only one offer is received in response to a competitive solicitation—

215.371-2 Promote competition.

Except as provided in sections 215.371-4 and 215.371-5

215.371-3 Fair and reasonable price.

contracting officer shall—

215.371-4 Exceptions.

215.371-5 Waiver.

215.371-6 Solicitation provision.

Use the provision at 252.215-7007, Notice of Intent to Resolicit, in competitive solicitations, including solicitations using FAR part 12 procedures for the acquisition of commercial items, that will be solicited for fewer than 30 days, unless an exception at 215.371-4 applies or the requirement is waived in accordance with 215.371-5.

SUBPART 215.4--CONTRACT PRICING

(Revised May 10, 2016)

215.402 Pricing policy.

Follow the procedures at PGI 215.402 when conducting cost or price analysis, particularly with regard to acquisitions for sole source commercial items.

215.403 Obtaining certified cost or pricing data.

215.403-1 Prohibition on obtaining certified cost or pricing data (10 U.S.C.

2306a and 41 U.S.C. chapter 35).

215.403-3 Requiring data other than certified cost or pricing data.

Follow the procedures at PGI 215.403-3.

215.403-5 Instructions for submission of certified cost or pricing data and data other than certified cost or pricing data.

Table 215.403-1 – Contractor Forward Pricing Rate Proposal Adequacy Checklist

Complete the following checklist, providing the location of requested information, or an explanation of why the requested information is not provided, and submit it with the forward pricing rate proposal.

Contractor Forward Pricing Rate Proposal Adequacy Checklist

 

SUBMISSION

ITEM

PROPOSAL PAGE No. (if applicable)

If not provided, EXPLAIN (may use continuation pages)

GENERAL INSTRUCTIONS

    1.

Is there a properly completed first page of the proposal as specified by the contracting officer?

Initial proposal elements include:

    a. Name and address of contractor;

    b. Name and telephone number of point of contact;

    c. Period covered;

    d. The page of the proposal that addresses—

    1. Whether your organization is subject to cost accounting standards (CAS);

    2. Whether your organization has submitted a CAS Disclosure Statement, and whether it has been determined adequate;

    3. Whether you have been notified that you are or may be in noncompliance with your Disclosure Statement or CAS (other than a noncompliance that the cognizant Federal agency official had determined to have an immaterial cost impact), and if yes, an explanation;

    4. Whether any aspect of this proposal is inconsistent with your disclosed practices or applicable CAS, and, if so, an explanation; and whether the proposal is consistent with established estimating and accounting principles and procedures and FAR part 31, Cost Principles, and, if not, an explanation;

    e. The following statement: “This forward pricing rate proposal reflects our estimates, as of the date of submission entered in (f) below and conforms with Table 215.403-1. By submitting this proposal, we grant the Contracting Officer and authorized representative(s) the right to examine those records, which include books, documents, accounting procedures and practices, and other data, regardless of type and form or whether such supporting information is specifically referenced or included in the proposal as the basis for each estimate, that will permit an adequate evaluation of the proposed rates and factors.”;

    f. Date of submission; and

    g. Name, title, and signature of authorized representative.

Proposal Cover Page

 

    2.

Summary of proposed direct and indirect rates and factors, including the proposed pool and base costs for each proposed indirect rate and factor.

Immediately following the proposal cover page

 

    3.

Table of Contents or index.

    a. Does the proposal include a table of contents or index identifying and referencing all supporting data accompanying or identified in the proposal?

    b. For supporting documentation not provided with the proposal, does the basis of each estimate in the proposal include the location of the documentation and the point of contact (custodian) name, phone number, and email address?

   

    4.

Does the proposal disclose known or anticipated changes in business activities or processes that could materially impact the proposed rates (if not previously provided)? For example—

    a. Management initiatives to reduce costs;

    b. Changes in management objectives as a result of economic conditions and increased competitiveness;

    c. Changes in accounting policies, procedures, and practices including (i) reclassification of expenses from direct to indirect or vice versa; (ii) new methods of accumulating and allocating indirect costs and the related impact; and (iii) advance agreements;

    d. Company reorganizations (including acquisitions or divestitures);

    e. Shutdown of facilities; or

    f. Changes in business volume and/or contract mix/type.

   

    5.

Do proposed costs based on judgmental factors include an explanation of the estimating processes and methods used, including those used in projecting from known data?

   

    6.

Does the proposal show trends and budgetary data? Does the proposal provide an explanation of how the data, as well as any adjustments to the data, were used?

   

    7.

The proposal should reconcile to the supporting data referenced. If the proposal does not reconcile to the supporting data referenced, identify applicable page(s) and explain.

   

    8.

The proposal should be internally consistent. If the proposal is not internally consistent, identify applicable page(s) and explain.

   

Direct Labor

    9.

Direct Labor Rates Methodology and Basis of Each Estimate.

    a. Does the proposal include an explanation of the methodology used to develop the direct labor rates and identify the basis of each estimate?

    b. Does the proposal include or identify the location of the supporting documents for the base-period labor rates (e.g., payroll records)?

   

    10.

Does the proposal identify escalation factors for the out-year labor rates, the costs to which escalation is applicable, and the basis of each factor used?

   

    11.

Does the proposal identify planned or anticipated changes in the composition of labor rates, labor categories, union agreements, headcounts, or other factors that could significantly impact the direct labor rates?

   

Indirect Rates (Fringe, Overhead, G&A, etc.)

    12.

Indirect Rates Methodology and Basis of Each Estimate.

    a. Does the proposal identify the basis of each estimate and provide an explanation of the methodology used to develop the indirect rates?

    b. Does the proposal include or identify the location of the supporting documents for the proposed rates?

   

    13.

Does the proposal identify indirect expenses by burden center, by cost element, by year (including any voluntary deletions, if applicable) in a format that is consistent with the accounting system used to accumulate actual expenses?

   

    14.

Does the proposal identify any contingencies?

   

    15.

Does the proposal identify planned or anticipated changes in the nature, type, or level of indirect costs, including fringe benefits?

   

    16.

Does the proposal identify corporate, home office, shared services, or other incoming allocated costs and the source for those costs, including location and point of contact (custodian) name, phone number, and email address?

   

    17.

Does the proposal separately identify all intermediate cost pools and provide a reconciliation to show where the costs will be allocated?

   

    18.

Does the proposal identify the escalation factors used to escalate indirect costs for the out-years, the costs to which escalation is applicable, and the basis of each factor used?

   

    19.

Does the proposal provide details of the development of the allocation base?

   

    20.

Does the proposal include or reference the supporting data for the allocation base such as program budgets, negotiation memoranda, proposals, contract values, etc.?

   

    21.

Does the proposal identify how the proposed allocation bases reconcile with its long range plans, strategic plan, operating budgets, sales forecasts, program budgets, etc.?

   

Cost of Money (COM)

    22.

Cost of Money.

    a. Are Cost of Money rates submitted on Form CASB-CMF, with the Treasury Rate used to compute COM identified and a summary of the net book value of assets, identified as distributed and non-distributed?

    b. Does the proposal identify the support for the Form CASB-CMF, for example, the underlying reports and records supporting the net book value of assets contained in the form?

   

OTHER

    23.

Does the proposal include a comparison of prior forecasted costs to actual results in the same format as the proposal and an explanation/analysis of any differences?

   

    24.

If this is a revision to a previous rate proposal or a forward pricing rate agreement, does the new proposal provide a summary of the changes in the circumstances or the facts that the contractor asserts require the change to the rates?

   

215.404 Proposal analysis.

215.404-1 Proposal analysis techniques.

215.404-2 Data to support proposal analysis.

See PGI 215.404-2 for guidance on obtaining field pricing or audit assistance.

215.404-3 Subcontract pricing considerations.

Follow the procedures at PGI 215.404-3 when reviewing a subcontractor’s proposal.

215.404-4 Profit.

15.403-4(a)(1));

215.404-70 DD Form 1547, Record of Weighted Guidelines Method Application.

Follow the procedures at PGI 215.404-70 for use of DD Form 1547 whenever a structured approach to profit analysis is required.

215.404-71 Weighted guidelines method.

215.404-71-1 General.

215.404-71-2 Performance risk.

   

Assigned

Assigned

Base

Profit

Item

Contractor Risk Factors

Weighting

Value

(Item 20)

Objective

21.

Technical

(1)

(2)

N/A

N/A

22.

Management/

Cost Control

(1)

(2)

N/A

N/A

23.

Performance Risk

(Composite)

N/A

(3)

(4)

(5)

           

 

Normal Value

Designated Range

Standard

5%

3% to 7%

Technology Incentive

9%

7% to 11%

215.404-71-3 Contract type risk and working capital adjustment.

 

Contractor

 

Assigned

Base

Profit

Item

Risk Factors

 

Value

(Item 20)

Objective

24.

Contract Type Risk

 

(1)

(2)

(3)

   

Cost

Length

Interest

 
   

Financed

Factor

Rate

 

25.

Working Capital (4)

(5)

(6)

(7)

(8)

   

Normal

Designated

Contract Type

Notes

Value

(percent)

Range

(percent)

Firm-fixed-price, no financing

(1)

5

4 to 6.

Firm-fixed-price, with performance-based payments

(6)

4

2.5 to 5.5.

Firm-fixed-price, with progress payments

(2)

3

2 to 4.

       

Fixed-price incentive, no financing

(1)

3

2 to 4.

Fixed-price incentive, with performance-based payments

(6)

2

0.5 to 3.5.

Fixed-price with redetermination provision

(3)

   

Fixed-price incentive, with progress payments

(2)

1

0 to 2.

       

Cost-plus-incentive-fee

(4)

1

0 to 2.

Cost-plus-fixed-fee

(4)

 

.5

 

0 to 1.


Time-and-materials (including overhaul contracts priced on time-and-materials basis)

(5)

 

.5

 

0 to 1.

           

Labor-hour

(5)

 

.5

 

0 to 1.

Firm-fixed-price, level-of-effort

(5)

 

.5

 

0 to 1.

215.404-71-4 Facilities capital employed.

Item

Contractor Facilities Capital Employed

Assigned Value

Amount Employed

Profit Objective

26.

Land

N/A

(2)

N/A

27.

Buildings

N/A

(2)

N/A

28.

Equipment

(1)

(2)

(3)

Asset Type

Normal Value

Designated Range

Land

0%

N/A

Buildings

0%

N/A

Equipment

17.5%

10% to 25%

215.404-71-5 Cost efficiency factor.

215.404-72 Modified weighted guidelines method for nonprofit organizations other than FFRDCs.

215.404-73 Alternate structured approaches.

215.404-74 Fee requirements for cost-plus-award-fee contracts.

In developing a fee objective for cost-plus-award-fee contracts, the contracting officer shall—

215.404-75 Fee requirements for FFRDCs.

For nonprofit organizations that are FFRDCs, the contracting officer—

215.406-1 Prenegotiation objectives.

Follow the procedures at PGI 215.406-1 for establishing prenegotiation objectives.

215.406-3 Documenting the negotiation.

Follow the procedures at PGI 215.406-3 for documenting the negotiation.

215.407-2 Make-or-buy programs.

215.407-3 Forward pricing rate agreements.

215.407-4 Should-cost review.

See PGI 215.407-4 for guidance on determining whether to perform a program or overhead should-cost review.

215.407-5 Estimating systems.

215.407-5-70 Disclosure, maintenance, and review requirements.

and

(i) Determine the acceptability of the disclosure and approve or disapprove the system; and

(ii) Pursue correction of any deficiencies.

(5) In evaluating the acceptability of a contractor's estimating system, the contracting officer, in consultation with the auditor, shall determine whether the contractor's estimating system complies with the system criteria for an acceptable estimating system as prescribed in the clause at 252.215-7002, Cost Estimating System Requirements.

215.408 Solicitation provisions and contract clauses.

Data--Modifications;

$750,000; or

215.470 Estimated data prices.

SUBPART 215.5—PREAWARD, AWARD, AND POSTAWARD NOTIFICATIONS, PROTESTS, AND MISTAKES

(Added November 18, 2013)

215.503 Notifications to unsuccessful offerors.

If the Government exercises the authority provided in 239.7305(d), the notifications to unsuccessful offerors, either preaward or postaward, shall not reveal any information that is determined to be withheld from disclosure in accordance with section 806 of the National Defense Authorization Act for Fiscal Year 2011, as amended by section 806 of the National Defense Authorization Act for Fiscal Year 2013 (see subpart 239.73).

215.506 Postaward debriefing of offerors.

SUBPART 215.6—(Removed)

(October 14, 1998)

SUBPART 215.7—(Removed)

(October 14, 1998)

SUBPART 215.8—(Removed)

(October 14, 1998)

SUBPART 215.9—(Removed)

(October 14, 1998)

SUBPART 215.10—(Removed)

(October 14, 1998)

Previous PageTop Of PageTable Of ContentsDFARS Home PageNext Page