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DARS PART 15 -- CONTRACTING BY NEGOTIATION



PART 15 -- CONTRACTING BY NEGOTIATION

TABLE OF CONTENTS

SUBPART 15.2 — SOLICITATION AND RECEIPT OF PROPOSALS AND INFORMATION

15.201 Exchanges with industry before receipt of proposals.

15.203 Requests for proposals.

15.204 Contract format.

15.204-2 Part I--The Schedule.

15.204-5 Part IV--Representations and Instructions.

SUBPART 15.3 — SOURCE SELECTION

15.300 Scope of subpart.

15.303 Responsibilities.

215.304 Evaluation factors and significant sub factors.

15.305 Proposal evaluation.

15.306 Exchanges with offerors after receipt of proposals.

15.307 Proposal revisions.

15.308 Source selection decision.

215.371 Only one offer

215.371-1 Policy.

215.371-3 Fair & Reasonable price.

215.371-5 Waiver.

SUBPART 15.4 -– CONTRACT PRICING

15.404-1 Proposal analysis techniques.

15.406 Documentation.

15.406-3 Documenting the negotiation.

215.406-90 Contract Business Analysis Repository (CBAR)

SUBPART 15.5 -- PREAWARD, AWARD, AND POSTAWARD NOTIFICATIONS, PROTESTS, AND MISTAKES

15.505 Preaward debriefing of offerors.

15.506 Postaward debriefing of offerors.

SUBPART 15.6 — UNSOLICITED PROPOSALS

15.604 Agency points of contact.

15.606 Agency procedures.

15.606-1 Receipt and initial review.

PART 15 -- CONTRACTING BY NEGOTIATION

SUBPART 15.2 — SOLICITATION AND RECEIPT OF PROPOSALS AND INFORMATION

15.201 Exchanges with industry before receipt of proposals.

(S-90) Draft RFP may be released prior to final approval of the acquisition strategy and acquisition plan; however, no RFP, PWS or Solicitation documents shall be released without prior review and input, as applicable, by PL22

15.203 Requests for proposals.

(S-90) RFP Validation. A decision point is required for the release of a development RFP. The Contracting Officer shall provide a copy of the RFP to the Program Manager (requirements official) concurrently with Legal and Policy Compliance reviews. The Program Manager is required to get the RFP validated by the appropriate Decision Authority. Any questions pertaining to this validation requirement shall be sent to the Acquisition Support Center Mailbox, disa.meade.cae.list.acqusition-support-center-group@mail.mil. The Decision Authority has five (5) business days to complete their review. If the five (5) business days expire, from the date the Contracting Officer provided it to the Program Manager, the Contracting Officer can proceed without the Decision Authority’s validation.

15.204 Contract format.

(e) The designee is the HCA.

15.204-2 Part I--The Schedule.

(c) Section C, Description/specifications/statement of work. To the maximum extent practicable, requirements should be defined as PWS/SOOs/SOWs that focus on required outcomes or results, not methods of performance or processes.

15.204-5 Part IV--Representations and Instructions.

(b) Section L, Instructions, conditions, and notices to offerors or respondents.

(S-90) The Contracting Officer shall insert the provision at DARS 52.215-9000, Cross Reference Matrix, in all competitive solicitations when the HCA is the SSA. The contracting officer may insert the provision at DARS 52.215-9000, Cross Reference Matrix, in solicitations in other cases. The Cross Reference Matrix shall be used to ensure that all requirements are addressed, requirements do not conflict, and solicitation sections are internally consistent.

SUBPART 15.3 — SOURCE SELECTION

15.300 Scope of subpart.

Procedures, guidance, and templates for this section is located https://www.ditco.disa.mil/DitcoContractingTemplates/doku.php?id=disa_source_selection_procedures_guides_templates_samples_and_training_materials.

15.303 Responsibilities.

(a) The Senior Procurement Executive, acting as “Agency Head” under FAR and DFARS, may appoint the Source Selection Authority (SSA) (see FAR 15.303(b)). The SPE may appoint another individual for a particular procurement. Generally, the SSA appointment will follow the thresholds shown in Table 15-1, unless the SPE, or HCA (as delegated) determines otherwise. When the SPE retains authority to appoint the SSA, an appointment memorandum will be signed delegating SSA authority. The appointment memorandum, briefing slides, and procedures can be found at https://www.ditco.disa.mil/DITCOContractingTemplates/?id=disa_source_selection_procedures_guides_templates_samples_and_training_materials under Source Selection Templates/Samples.

(S-90) Review of SPE SSA Delegation Briefing Package: (a) When required documents are only the Delegation Letter and the SPE Briefing slides, send the documents to the DISA Ft Meade PLD List PLD Front Office Staff Mailbox.

(b) When requirement includes documents that require SPE signature, Legal review is required. After the reviews are completed, the Contracting Officer shall send the entire package, including the documents requiring SPE signature, to the DISA Ft Meade PLD List PLD Front Office Staff Mailbox.

(c) Delegation Briefing Package Procedures are located at https://www.ditco.disa.mil/DITCOContractingTemplates/ under the folder entitled Source Selection Authority (SSA)/Approving Authority (AA) Delegation Briefing and Letters.

Table 15-1 Source Selection Authority (SSA)

Contract Action Value

SSA

<$100M

Contracting Officer

≥$100M - $250M

Chief of Contracting Office (CoCO)

≥$250M - <$500M

Head of Contracting Office (HCO)

≥$500M and Special Interest Actions

Procurement Services Executive or Vice, Procurement Services Executive

(S-91) The routing process for SSA approval is as follows:

The Contracting Officer/Contract Specialist prepares DISA 320 as shown in DARS Subpart 1.9003. Local OGC and PL22 Compliance Review shall be included in the routing process.

(S-92) The source selection policies and procedures of FAR Subpart 15.3, including the designation of an SSA, do not apply to orders placed against GSA Federal Supply Schedule contracts, orders placed against Blanket Purchase Agreements (BPAs), or task and delivery orders placed against indefinite delivery contracts.

(S-93) All emails containing source selection sensitive information shall include the statement "SOURCE SELECTION INFORMATION -- SEE FAR 2.101 and 3.104" as a header within the body of the e-mail. All emails containing source selection sensitive information shall be sent encrypted and/or password protected, to the maximum extent practicable.

(S-94) COCO approval is required when utilizing best value evaluation criteria Full Trade-Off under $50M.

215.304 Evaluation factors and significant sub factors.

(c)(i) Class Deviation 2013-O0018, September 24, 2013 (Subj: Class Deviation--Past Performance Evaluation Thresholds and Reporting Requirements) is effective until it is published in the DFARS or until rescinded. The deviation identifies thresholds associated with key business sectors for the collection and use of Past Performance Information (PPI). The deviation shall be used in lieu of FAR 15.304(c)(3)(i) and

42.1502(b) and may be accessed at http://www.acq.osd.mil/dpap/dars/class_deviations.html.

15.305 Proposal evaluation.

(S-90) Ensure the source selection plan and solicitation clearly state all evaluation factors, sub- factors, and relative importance.

See the OSD Guide to Collection and Use of Past Performance Information.

15.306 Exchanges with offerors after receipt of proposals.

(S-90) For further guidance on how to conduct exchanges with offerors after receipt of proposals, follow the guidance within the DISA Source Selection Procedures located at https://www.ditco.disa.mil/DITCOContractingTemplates/.

15.307 Proposal revisions.

(S-91) Establish a page limit for final proposal revisions.

(S-92) Final proposal revision letters shall be reviewed by Legal for actions $50M and over.

15.308 Source selection decision.

(S-90) Use of Automated Source Selection Evaluation Tool and Source Selection training. PSD has contracted for, and has budgeted to pay for, an automated source selection evaluation tool and source selectin training for SSEBs. An automated source selection evaluation tool and formal source selection training will be used for competitive source selections in excess of $50M. The HCO may waive (in writing; e-mail is acceptable) use of a source selection tool or the requirement for formal source selection training. Coordinate with PL41, point of contact: Katie Tarry, email: katie.m.tarry.civ@mail.mil, phone: (301) 225-4522 or Frank Wheeler, email: franklin.wheeler.civ@mail.mil, phone: (301) 225-4075, to schedule use of the tool and training at least 30 days in advance of your source selection start date.

215.371 Only one offer

215.371-1 Policy.

(S-91) If only one offer is received in response to a competitive solicitation, the contracting officer shall determine if the solicitation was flawed or unduly restrictive, and if the single proposal is an acceptable proposal.

215.371-3 Fair & Reasonable price.

(b) If only one offer is received, the contracting officer shall obtain cost or pricing data, or other than cost and pricing data for commercial items, and negotiate to determine a fair and reasonable price for all telecommunications contract actions arising out of the Inquiry/Quote/Order (I/Q/O) process.

215.371-5 Waiver.

(b) For I/Q/O telecommunication actions, the HCA delegates the waiver authority to the DITCO Telecommunications Chief of the Contracting Office. For all other actions, the HCA delegates the waiver authority to the HCO.

(S-90) Prior to awarding to the only offeror received when utilizing the competitive procedures, the Contracting Officer shall determine if resoliciting the procurement for an additional 30 days is in the best interest of the Government. A sample determination and findings/waiver request can be found at https://www.ditco.disa.mil/DITCOContractingTemplates/docs/df_only_one_offer_waiver.docx

(1) For I/Q/O telecommunication actions, If it is determined that it is not in the best interest of the Government to resolicit, then the Contracting Officer shall submit a waiver request to the DITCO Telecommunications Chief of the Contracting Office for approval and signature.

(2) For all other actions, If it is determined that it is not in the best interest of the Government to resolicit, then the Contracting Officer shall submit a waiver request to the appropriate HCO for approval and signature.

SUBPART 15.4 -– CONTRACT PRICING

15.404-1 Proposal analysis techniques.

(c)(2)(iii)(D) Independent Government Cost Estimates (IGCEs).

(S-90) Definitions.

IGCE is a cost estimate developed by Government technical personnel, based on the

PWS/SOO/SOW (without the influence of potential contractors).

Resource Managers ensure and verify that resources are available in the budget/POM, and manage resources accordingly.

(S-91) Policy.

(1) IGCEs are part of the required documentation for HCA review. The DISA IGCE Deskbook located at https://www.ditco.disa.mil/hq/deskbooks.asp contains procedures/guidance for developing IGCEs.

(2) IGCEs must contain details for estimates. IGCEs are not valid and are not acceptable for HCA review or for contracting action without the backup details to demonstrate how the estimates were developed. Assistance with developing IGCEs including incorporation of current cost and pricing information should be requested, as needed, from PL23.

(3) The use of “fully burdened” labor (hour) rates is recommended. Rates must be recent, and relevant to the labor categories contemplated. PL23 can provide advice regarding sources of fully loaded labor rates as well as their applicability and limitations for use in developing the IGCE.

(4) Resource Managers shall coordinate on IGCEs, prior to HCA review or submission of procurement requests to contracts.

(5) Contracting officers shall notify AMs of appropriate remedial action on contract price/IGCE deviations greater than 25 percent, or of any other indication of discrepancy between proposal and the basis for the IGCE (e.g., significant variation in labor mix). Remedial action may include changes to the PWS/SOO/SOW, formal discussions, resource reprogramming, amendment or cancellation, but does not include unjustified revision of the IGCE.

(S-92) Cost and Price Analysis. DITCO Contracting Officers, communications specialists, contract specialists, and contract negotiators assigned to DITCO field offices shall initiate action to obtain cost and price analyses in accordance with the following procedures.

(1) The contracting officer, exercising sole responsibility for the final pricing decision shall, in accordance with FAR 15.404-1, coordinate with, request, and evaluate the advice of the Contract Price/Cost Analyst in PL23 and Tariff Specialists in PL82. Contracting Officers shall obtain cost and pricing assistance for contract awards, orders or modifications of $10 million or more. Contracting Officers may request cost and pricing assistance, including a cost/price analysis and review of all Solicitation documents including the Performance Work Statement (PWS), Request for Proposal (RFP), etc. before negotiating any contract award, order or modification with a contract value in excess of the threshold for obtaining certified cost or pricing data (FAR 15.403-4(a)(1)), if required by the contracting officer in order to determine price reasonableness.

The following are exceptions apply:

(A) Orders priced in accordance with prices/rates established in base contracts/agreements.

(B) Modifications priced in accordance with prices/rates established within the base contract/order/agreement.

(C) Modifications for funding actions.

(D) Modifications to exercise priced options; or

(E) Any other contract award, modification, or order meeting the thresholds above where the Cost and Pricing Branch Chief and Contracting Officer agree in advance that the review should be waived. This agreement must be documented in writing and stored in the official contract file.

(2) PL82 assistance related to tariff interpretation, tariff rate establishment/update and other tariff issues shall be requested as required.

(3) PL23 or PL82, with the concurrence of the contracting officer, shall be responsible for: (i) Obtaining cost or pricing data or information other than cost or pricing data and auditing

contractor's records.

(ii) Performing contract audit follow-up reporting tasks in accordance with DoD Directive

7640.2 and DARS 42.1-90.

(iii) Conducting cost or price analyses and tariff reviews in accordance with FAR 15.404-1, as appropriate. Cost analyses shall incorporate audit findings, technical analysis and tariff review results, and all relevant cost driver information.

(iv) Consolidating cost or pricing data, information other than cost or pricing data, audit results, tariff reviews and other pertinent information; and developing pre-negotiation objectives.

(v) Participating in negotiations with contractors which require the use of information, computations, or data developed during the cost or price analysis.

(vi) Reviewing all major RFPs prior to their issuance to industry for competitive and noncompetitive services, supplies, and equipment to ensure adequate cost or pricing data and tariff provisions are included and that detailed evaluation criteria are developed and tailored for each acquisition.

(vii) Assisting contracting officers in documenting the contract files by providing detailed cost/price analysis memoranda, supporting schedules, automated spreadsheets, discussion items, pre- and post-negotiation memorandums input, DD Forms 1547, Tariff Change Notices, Tariff Contract File Conflict Notices, and other items as required.

(viii) Participating in conferences, briefings, debriefings, and other meetings where pricing and/or tariff support is required.

(S-93) Request Cost and Price Analysis Support. To initiate a request for cost/price analysis support, the contracting officer shall submit an Interoffice Memorandum (IM) to applicable Cost Analyst via the PL23 Mailbox at DITCO Scott containing detailed instructions. RFP reviews must be requested early in the acquisition stage so that a detailed review may be accomplished prior to submitting the RFP to industry. Acquisition plans and timelines must recognize the need for effective pricing/tariff reviews and analyses and must contain reasonable periods for conducting these tasks.

15.406 Documentation.

15.406-3 Documenting the negotiation.

(S-90) Price Negotiation Memorandum. A Price Negotiation Memorandum (PNM) shall be prepared for contracting actions as described below and included in the official contract file.

A PNM is not required for orders for pre-priced supplies or services placed against an established single award indefinite delivery contracts and actions at or below the micro-purchase level. The PNM fulfills the documentation requirements in FAR 15.406-3 and provides the determination of fair and reasonable pricing. (See DARS 13.106-3 (S-90)) for PNM requirements for the I/Q/O process or the North Atlantic Treaty Organization (NATO) Allied Long Lines Agency (ALLA)/National Allied Long Lines Agency (NALLA) circuit demand process under the threshold for the test program for certain commercial items of $6.5M.)

(1) For competitive open market, competitive Small Business Administration (SBA) Section

8(a), and competitive GSA Schedule acquisitions, use the “Competitive PNM” format; except, for FAR Parts 12 and 15 acquisitions in which the HCO or HCA serve as the Source Selection Authority, use the “Source Selection Decision Document (SSDD)” format in lieu of the PNM format.

(2) For competitive acquisitions against indefinite delivery contracts with pre-established rates

(e.g., labor rate), use the “IDIQ PNM” format.

(3) For competitive acquisitions resulting in only one offeror, subject to the requirements of the OSD Memo, Improving Competition in Defense Procurements dated 24 Nov 10, use the “Sole Source PNM” format.

(4) For sole source open market acquisitions and sole source SBA Section 8(a) acquisitions at or below the simplified acquisition threshold, or sole source orders placed against established indefinite delivery contracts or GSA Schedules at any dollar value, use the “Sole Source PNM” format.

(5) For sole source open market acquisitions or sole source SBA Section 8(a) acquisitions above the simplified acquisition threshold, use the “Pre-PNM” and “Post-PNM” formats.

(6) For pricing modifications to contracts or orders that were previously competed and have pre- established rates, use the “Modifications PNM” format.

(7) For pricing modifications to contracts or orders that do not include pre-established rates

(e.g., cost type pricing modifications) above the simplified acquisition threshold, use the “Pre-PNM” and “Post-PNM” formats.

** The PNM templates are located at https://www.ditco.disa.mil/DitcoContractingTemplates/doku.php?id=price_negotiation_memorandum_pnm_templates.

(S-91) Approvals at the contracting officer level are required for all PNMs. The contracting officer must sign these PNMs before the award of the contract/order/modification and place a copy in the official contract file.

(S-92) DITCO Cost/Price Analyst Involvement

(1) Pre- and Post-PNMs and Sole Source PNMs valued over $10M shall be routed electronically to a DITCO Contract Cost/Price Analyst for review/coordination prior to approval (See Contract Document Approval Signature Routing Procedures). Routing to the Cost/Price Analyst is not required when pricing is based on established catalog or market prices, when prices are set by law or regulation, or a fair and reasonable price determination can be made by the contracting officer by comparing prices or rates against an existing or previous Government contract where prices are recent and based on an adequately supported fair and reasonable determination.

(2) Pre-and Post-PNMs valued over $10M, shall be prepared in conjunction with the DITCO Cost/Price Analyst. The Cost/Price Analyst shall assist the contracting officer in evaluation of the pricing proposal; development of the pre-negotiation objective and Pre-PNM; negotiations; and, development of the Post-PNM.

(S-93) PNM Approval Authority. The approval authorities for Pre/Post PNMs negotiation objectives and modification PNMs negotiation objectives is the Contracting Officer.

Table 15-2 Competitive Acquisitions PNM Format

ACQUISITION TYPE

FORMAT

Open Market (when the Contracting

Officer is the SSA)

Competitive PNM

GSA Schedule orders

Competitive PNM

8(a)

Competitive PNM

IDIQ orders with Pre-established

labor rates

IDIQ PNM

Open Market

Source Selection Decision

Document (SSDD)

Competitive, but only 1 offer

received

Sole Source PNM

Table 15-3 Sole Source Acquisitions PNM Format

ACQUISITION TYPE

FORMAT

Open Market or 8(a) at or below SAT

Sole Source PNM

GSA Schedule orders

Sole Source PNM

IDIQ orders

Sole Source PNM

Open Market or 8(a) above SAT

Pre-PNM and Post-PNM

Table 15-4 Modifications PNM Format

MODIFICATION TYPE

FORMAT

Pricing Modifications against

previously competed actions and have

Pre-established rates (e.g., labor rates)

Modifications PNM

Pricing Modifications using Pre-

established rates (e.g., labor rates) –

sole source

Modifications PNM

Other Pricing Modifications (e.g.,

cost type modifications)

Pre-PNM and Post-PNM

215.406-3 Documenting the negotiation.

The Contract Business Analysis Repository User's Manual and the CBAR PCO list (includes specific contacts for each section/org) can be located at https://www.ditco.disa.mil/DITCOContractingTemplates/?id=contracting_templates .

SUBPART 15.5 -- PREAWARD, AWARD, AND POSTAWARD NOTIFICATIONS, PROTESTS, AND MISTAKES

15.502 Applicability.

The DoD Source Selection Procedures, Appendix B, Outline for Debriefings at the DISA Contracting Templates website,

https://www.ditco.disa.mil/DitcoContractingTemplates/doku.php?id=source_selection_procedure s).

SUBPART 15.6 — UNSOLICITED PROPOSALS

15.606 Agency procedures.

(a) Unless the contractor specifies within the proposal; no reproduction of material is allowed beyond the initial copy per branch/division required for the appropriate PL22, legal, or

technical reviews. Upon notification by PL22 that reviews are complete, all copies shall be properly disposed via shredding and any softcopies received by email must be permanently deleted.

(b) PL22 is the agency point of contact to coordinate the receipt and handling of unsolicited proposals.

15.606-1 Receipt and initial review.

(S-90) PL22 will perform the receipt and initial review process in consultation with the HCO or HCO designee and Legal within 15 business days of receipt of the unsolicited proposal. (The HCO’s designee must be a contracting officer who can contractually obligate or bind the Government to consult on the initial review.) Before initiating a comprehensive evaluation PL22 shall make the determination the unsolicited proposals meets the criteria defined in FAR 15.606-

1(a) (1) through (7). If the proposal meets these requirements the Head of Contracting Activity (HCA) shall promptly acknowledge receipt and process the proposal for further evaluation. If the proposal does not meet the requirements of FAR 15.606-1(a) and is rejected, the HCA shall inform the offeror the reasons for rejection. PL22 shall maintain an unsolicited proposal log which includes, at a minimum, the company name, proposal title, DITCO Contracting Office, Technical POC, date unsolicited proposal was received, final disposition of the unsolicited proposal.

15.606-2 Evaluation.

(a) PL22 will coordinate comprehensive evaluations and will attach or imprint on each unsolicited proposal, circulated for evaluation, the legend required by 15.609(d) within 30 business days after receipt of the unsolicited proposal.

(b) If the unsolicited proposal meets the criteria in FAR 15.605 and 15.606-1, PL22 will forward the unsolicited proposal to the appropriate technical representative, as designated by the HCO or HCO’s designee, for a comprehensive technical review. The technical review shall include a recommendation for acceptance or rejection of the proposal after considering the factors outlined in FAR 15.603. The technical evaluator or evaluators recommended acceptance or rejection of the unsolicited proposal shall be documented with supporting rationale.

(c) The evaluators shall notify PL22 of their recommendations when the evaluation is completed.

(S-90) PL22 will review the entire package including the unsolicited proposals and the technical evaluation and forward the package to legal for review. Legal will provide comments concurring or nonconcurring with the evaluation decision.

15.607 Criteria for acceptance and negotiation of an unsolicited proposal.

(S-90) All unsolicited proposals will be reviewed and accepted or rejected by the PSD Executive.

(S-91) The PSD Executive will provide a letter indicating rejection of an unsolicited proposal to the offeror citing the reasons for the rejection using supporting statements from the comprehensive evaluation.

(S-92) The Vice Director will provide a letter indicating acceptance of an unsolicited proposal only after the criteria in 15.606-2 are met.

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