PART 17 -- SPECIAL CONTRACTING METHODS
TABLE OF CONTENTS
SUBPART 17.1 -- MULTI-YEAR CONTRACTS
17.106-3 Special procedures applicable to DoD, NASA, and the Coast Guard.
SUBPART 17.2 — OPTIONS
17.202 Use of options.
17.207 Exercise of options.
SUBPART 17.5 — INTERAGENCY ACQUISITIONS
17.500 Scope of subpart.
17.502-2 Economy Act.
17.503 Ordering Procedures.
SUBPART 217.74--UNDEFINITIZED CONTRACT ACTIONS
217.7405 Plans and reports.
SUBPART 17.78 — CONTRACTS OR DELIVERY ORDERS ISSUED BY A NON-DOD AGENCY
SUBPART 17.90 — GRANTS AND COOPERATIVE AGREEMENTS
SUBPART 17.91 — PRODUCT LOAN AGREEMENTS
Bridge Contract is a short-term contract needed to obtain services during an interim period (e.g., 3-month bridge with two 1 month options) until a new contract can be established. It is also a non-competitive award for the continuation of same mission-essential services until a longer term contract can be competitively awarded. If a contractor is required to submit a proposal for the extension of the same services it is considered to be a bridge contract. The SPE Bridge Decision Briefing (https://www.ditco.disa.mil/DITCOContractingTemplates/) is not required for non-DISA contract actions nor is it required for bridge contracts made necessary by GAO or Agency-level protests.
(b) For multi-year contracts, the HCA may authorize modification of the requirements of this subpart and the clause at FAR 52.217-2, Cancellation Under Multi-year Contracts.
(e) The authority to authorize recurring costs in cancellation ceilings for multi-year contracts is delegated to the HCA.
(S-90) FAR Clause 52.217-8 will be included in all services solicitations and contracts, whether contracted using sole source or competitive procedures. (See FAR 17.200, 17.202, and 37.111)
(S-91) The HCA will approve the use of the FAR clause 52.217-8 for DISA requirements. The HCO will approve the use of the FAR clause 52.217-8 for non-DISA requirements. The HCA may defer approval to the SPE on a case-by-cases basis. A quarterly report which identifies the reason(s) for use of the clause to extend services under a Contract or Order will be provided to the SPE.
(a) Definition. Optional CLIN that can be exercised unilaterally for an increase in quantity of support for the task areas previously defined in the PWS/SOO/SOW.
(1) When the surge option amount is equal to or greater than 50% of the total value of the non-surge CLINs, the contracting officer shall write a determination for the surge amount prior to releasing the RFP or RFQ. The determination can be added to the Determination for Use of Options template.
i. Approval up to 50% is the Contracting Officer.
ii. Approval over 50% is a level above the Contracting Officer.
(2) The surge CLIN shall be numbered as 9999 with a contract type of cost reimbursement not-to-exceed. The following language may be used as the description for CLIN 9999:
The Government may require surge support during the base or any option period, and surge modifications will be in-scope to provide increased support for the defined task areas of the PWS. Surge support is OPTIONAL and is not a guarantee. If the Government determines that an increased quantity of support is required for the task areas defined in the PWS, the Government reserves the right to exercise the Surge Option unilaterally. The Contracting Officer will provide written notice to the Contractor at least XX calendar days prior to any unilateral exercise of the Surge Option. In the event the Government does elect to exercise the Surge Option, surge support will be realigned under new or existing CLINs for the relevant task areas identified in the PWS, and an equal amount will be deducted from the Surge CLIN not-to-exceed amount. Surge support will be provided at the same labor rates proposed and found fair and reasonable at time of contract/task order award for the applicable period of performance. When surge support is realigned under cost-type CLINs, if actual, reimbursable labor rates exceed the labor rates originally proposed and found fair and reasonable at time of contract/task order award, the contractor is only entitled to a fee amount based on the originally proposed labor rates.
(3) The surge option should be exercised unilaterally to the maximum extent possible; however, can be exercised bilaterally if negotiations are required.
(4) The amount of any new CLIN or amount added to an existing CLIN that implements surge will be equal to the decrement of the not-to-exceed amount of CLIN 9999. Description for the surge CLIN should state “Surge of Task Area #_____ with a period of performance from ________ to ________.
(S-90) The price for exercising 52.217-8 will be evaluated as part of the total price of a proposal. Each solicitation will include the following paragraph in Section M or 52.212-2(b) Evaluation – Commercial Items: The Government will evaluate offers for award purposes by adding the total price for all options to the total price for the basic requirement.” To account for the option period(s) possible under 52.217-8 (maximum of six months), Option to Extend Services, the Government will evaluate the option to extend services (FAR Clause 52.217-8) by requiring the offeror to price an additional 6 months of the offeror's final option period price to the offeror's total price. This amount will be the total evaluated price. The Government may choose to exercise the Option to Extend Services at the end of any performance period (base or option periods). However, the end of the Option to Extend Services period represents the end of contract performance, and the Government shall not exercise any other option periods after the Option to Extend Services has been exercised.
The price for exercising 52.217-8 shall not be included in the Independent Government Cost Estimate.
(S-90) To exercise an option, the requirements office will send the cognizant contracting officer a request to exercise the option. The request, and other documents as outlined below, must be received far enough in advance to allow sufficient time to send the contractor notice of intent to exercise the option to exercise the option under FAR 17.207(a) and before synopsis (FAR 17.207(c)(4)) if the synopsis of the option is necessary because the option was not previously addressed in the synopsis of the basic contract requirement.
(S-91) The request to exercise an option must include the following:
(1) Statement of Need. Validate the requirement covered by the option as fulfilling an existing
Government need (FAR 17.207(c)(2))
(2) Market Research. Document all market research conducted and the results (FAR/DFARS Part 10).
(3) Past Performance. Provide relevant raw data for past performance of the contractor (FAR/DARS Part 42.15). Address the contractor’s compliance with FAR 52.222-50 Combating Trafficking in Persons clause.
(4) Availability of Funds. Provide evidence that funds will be available upon exercise of option
(e.g., Program Plan).
(5) Draft CPARS record. Initiate a draft contract performance evaluation in the CPARS database prepared by the Assessing Official Representative (AOR/COR) to initiate reporting and enter proposed ratings and narratives, if applicable (see FAR 42.1502 Policy/DFARS 242.1502 Policy (DEVIATION).
The AO/KO shall run a Status Report by contract/order number in CPARS and open the evaluation to validate that the AOR has entered the evaluation. After the period of performance ends, the AOR will make any updates to the ratings in CPARS to reflect the last few months of the POP and forward to the AO.
(S-92) The request to exercise an option shall be marked and submitted as follows:
(1) Required markings on all pages, centered, top/bottom: "SOURCE SELECTION
INFORMATION See FAR 2.101 and 3.104"
(2) Electronic submission is required using digitally signed/encrypted e-mail. See DISAI 630-
230-30 (currently being revised) for e-mail security practices for the transmission of sensitive but unclassified information.
(S-93) The contracting officer must discuss compliance with DARS Subpart 16.601 in the D&F
if exercising options under a time and materials (T&M) contract.
(S-94) The existence of the 52.217-8 option, including the associated dollar value and period of performance, as appropriate, will be addressed in all acquisitions documents (e.g., J&As, D&Fs, synopsis, solicitation evaluation language, and price negotiation memorandum).
(S-95) Current contracts that include FAR Clause 52.217-8, Option to Extend Services, and the option was evaluated prior to award, the contracting officer shall prepare a determination and findings document in accordance with FAR Subpart 17.207 Exercise of options prior to exercising the option.
(a) This subpart prescribes policies and procedures applicable to all interagency acquisitions under any authority, except as provided for in paragraphs (c), (S-90) & (S-91) of this section. Another agency is defined as a non-DoD Federal Agency; except, an interagency acquisition with another DoD component will require a Determination of Best Procurement Approach.
(c) This subpart does not apply to:
(2) Assisted acquisitions at or less than the micro-purchase threshold (IAW the definition of “micro-purchase threshold” at FAR 2.101).
(S-90) Support agreements executed under DoD Instruction 4000.19, Interservice and Intragovernmental Support (August 9, 1995), and any successor instruction, which are governed by other applicable DISA regulations.
(S-91) When the DISA Information Technology Contracting Office (DITCO) is acting as the servicing agency in support of a DoD Component; unless DITCO becomes a requesting agency to meet the component’s needs.
(S-90) DITCO is the organic contracting activity of DISA. DISA activities shall only use the contracting services of DITCO to acquire all required supplies and services, unless the use of another agency’s contracting services (an assisted interagency acquisition) has been determined to be the best procurement approach (see FAR 17.502-1(a)(1)). Only DITCO is authorized to approve and execute interagency acquisitions on behalf of DISA, except as noted in 17.503 (S-
(S-91) Further guidance on how to conduct Interagency Acquisitions can be found in the DISA Interagency Acquisition Guide located at https://www.ditco.disa.mil/download.asp?/DITCOContractingTemplates/docs/interagency_acquisition_guide.docx.
(S-92) DISA activities shall not avoid the requirements of this subpart by using reimbursable interagency support agreements governed by DoD Instruction 4000.19 to acquire supplies and services. Guidelines about how to differentiate between interagency acquisitions and reimbursable support agreements are included in the DISA Interagency Acquisition Guide.
(a) Determination of Best Procurement Approach.
(S-90) The Determination of Best Procurement Approach (DBPA) shall be prepared for all Interagency Acquisitions in accordance with the DISA Interagency Acquisition Guide. The guide provides formats for both direct acquisitions and assisted acquisitions.
(S-91) If the Servicing Agency is non-DoD, the requirements of DFARS 217.770 shall be addressed in the determination of best procurement approach. See the DISA Interagency Acquisition Guide for details.
(S-92) The DISA requiring activity shall prepare the determination of best procurement approach. The determination of best procurement approach shall be reviewed and approved in accordance with Table 17-1 for Assisted Acquisitions.
(S-93) If the proposed acquisition meets the requirements for a written Acquisition Plan (AP), the determination of best procurement approach shall be attached to the AP and approved concurrently when the AP is routed for coordination/approval.
(b) Written agreement on responsibility for management and administration.
(1) Assisted acquisitions.
(S-90) Interagency Agreements for Assisted Acquisitions in which DITCO is the requesting agency, shall be prepared in accordance with the DISA Interagency Acquisition Guide.
(S-91) Interagency Agreements for Assisted Acquisitions shall be approved in accordance with
Table 17-1 below.
(S-90) The DISA requiring activity shall prepare the D&F. Follow the guidance and formats in the DISA Interagency Acquisition Guide. The D&F shall be reviewed and approved as indicated in Tables 17-1.
(S-90) In addition to any other applicable requesting agency-specific clauses, all contracts awarded and orders issued by the servicing agency for property that must be accounted for in accordance with DISAI 270-165-2 shall include the clauses at DFARS 252.211-7003 and DARS
52.211-9000, which sets forth the instructions for the contractor to deliver, and for the DISA
receiving activity to approve, an Electronic Product List.
(S-90) Determinations that the requested work falls within the purpose, mission, general scope of effort, or special competency of the Federally Funded Research & Development Center
(FFRDC), and will not place the FFRDC in direct competition with domestic private industry, shall be prepared in writing by the Commander, Principal Director, or Deputy Principal Director of the requiring activity, along with the required determination of the best procurement approach.
(S-91) No DISA official shall cause DISA to enter into a contract directly with any FFRDC (i.e., not an interagency acquisition through the sponsoring agency) unless such contract is executed in accordance with all applicable provisions of the law, including, without limitation, all relevant Federal procurement statutes, the FAR, the DFARS, and the DARS, that would apply to a
contract with any other private entity. DISA officials may, however, execute interagency acquisitions with or through an FFRDC sponsoring agency to obtain the services of an FFRDC in accordance with this subpart.
Table 17-1 DISA ASSISTED Acquisitions DBPA, Interagency Agreement, and Economy
Act D&F Coordination and Approval
the micro-purchase threshold to
1) Requirements Official
2) Technical Director (TD)/Agency Competition Advocate (ACA)
Chief of Contracting
1) Deputy Principal Director
of the Requirements Office
Head of Contracting
the micro-purchase threshold
1) Deputy Principal Director
of the Requirements Office
Head of Contracting Activity (HCA)
(a) The following undefinitized contract actions (UCAs) are not subject to this subpart.
(2) PL82 contract actions at or below the simplified acquisition threshold for:
(i) Temporary circuits associated with presidential travel ordered via the Basic Agreements
(ii) CLINS associated with travel on the WHCA Travel Contract
(S-90) The Request for HCA approval of an Undefinitized Contract Action (UCA) is located at https://www.ditco.disa.mil/DitcoContractingTemplates/doku.php?id=undefinitized_contract_action_u ca_and_unpriced_change_order_uco_templates and must be maintained in the contract file.
(S-90) Reports. Contracting Officers shall report all Undefinitized Contract Actions (UCAs)
greater than $5M to PL21 within 10 days of creating the UCA (see DFARS 217.7405 & PGI
217.7405). Contract data shall be provided in the format required by the spreadsheet referenced in DFARS PGI 217.7405(2)(ii).
(S-91) Management Plan (D&F). All UCAs are required to adhere to the ‘Consolidated Undefinitized Contract Action (UCA) Management Plan’ required by DFARS PGI 217.7405 (2)(i). Before entering into any UCA, Contracting Officers shall obtain HCA approval of an UCA (See DARS 217.7404-1). Prior to definitization of any UCA, Contracting Officer shall satisfy the requirements of the UCA Management Plan by executing a UCA Determinations and Findings (D&F) for HCA approval. The UCA D&F contains elements of the Consolidated UCA Management Plan (DFARS PGI 217.7405(2)(i)) and shall be maintained in the contract file. The UCA D&F template is located https://www.ditco.disa.mil/DitcoContractingTemplates/doku.php?id=undefinitized_contract_acti on_uca_and_unpriced_change_order_uco_templates. Contracting Officers shall submit all approved UCA Requests for Approval and the UCA D&Fs to PL21 immediately upon approval.
(S-90) The requirements of DFARS 217.770 shall be addressed in the determination of best procurement approach required by FAR 17.502-1. See the DISA Interagency Acquisition Guide at https://www.ditco.disa.mil/DitcoContractingTemplates/doku.php?id=interagency_acquisition_guide.
The HCA is delegated the authority to select, appoint, and terminate grants officers within DISA. This authority to award grants and cooperative agreements flows from DoD Directive 3210.6 and Interim-Guidance Draft of Defense Grant and Agreement Regulatory System (DGARS) DoD
Cooperative Agreement. A legal instrument used to enter into the same kind of relationship as a grant, except that substantial involvement is expected between the Agency and the recipient when carrying out the activity contemplated by the cooperative agreement.
Defense Grant and Agreement Regulatory System (DoDGARS). A system of policies and procedures to guide DoD grants and cooperative agreements. It also governs other non- procurement transactions, where provisions so indicate.
Grant. A legal instrument used to enter into a relationship, the principal purpose of which is to transfer a thing of value to the recipient to carry out a public purpose of support or stimulation authorized by a law of the United States, rather than to acquire property or services for the Agency’s direct benefit or use. Further, it is a relationship in which substantial involvement is not expected between the Agency and the recipient when carrying out the activity contemplated by the grant.
Grants Officer. Individual authorized in writing by the HCA to enter into, administer, or terminate grants. Only grants officers shall sign such legal instruments on behalf of the Agency. Grants officers may bind only to the extent of the authority delegated to them.
(a) All requests for appointment of a grants officer shall be submitted to PL2 for processing to the HCA for approval.
(b) Candidates must complete at least one training course oriented to grants and cooperative agreements, and become knowledgeable of the DoDGARs, prior to appointment.
(c) Grant officer appointments will be issued via memorandum signed by the HCA.
Product Loan Agreement is a convenient vehicle for the Government to test and evaluate commercial and developmental items for a specified period of time. The Agreement allows the Government to use the product(s) on a no-cost basis for demonstration, testing, and assessing various product(s) in the marketplace.
(a) The cognizant requirements office develops and initiates the Product Loan Agreement.
(b) The contracting officer must coordinate with and obtain the concurrence of legal counsel on the DISA Form 9 when drafting an Agreement which deviates from the template below. This coordination is not required, however, if the only deviations are those expressly authorized by this subpart. The contracting officer maintains the official Product Loan Agreement file.
(c) The contracting officer is the only individual authorized to enter into, administer, and terminate Product Loan Agreements on behalf of the Government. Unauthorized signatures on Product Loan Agreements might result in Anti-Deficiency Act violations.
(d) The Product Loan Agreement template is located at https://www.ditco.disa.mil/DitcoContractingTemplates/doku.php?id=product_loan_agreement.