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5216.203 (DFARS 216.203) Fixed-price contracts with economic price adjustment.

5216.203-4 (DFARS 216.203-4) Contract clauses.

(S-90) Submit an annual report for multi-year (MY) contracts with EPA clauses pursuant to DPAP memorandum “Follow-on Actions in Response to OIG Report Notification: "Effect of Payments into Boeing Pension Funds on Economic Price Adjustment Clauses in DoD Contract” (Project No. D2006-D000CH-0226.000)” no later than October 26 each year via DASN(AP) by email at RDAJ& with the subject “DFARS 216.203-4 – Multi-year (MY) Contracts with EPA Clauses.”


5216.306 (DFARS 216.306) Cost-plus-fixed-fee contracts.

(c) Limitations.

(ii)(B)(1) COMNAVFAC is delegated authority to approve cost-plus-fixed-fee (CPFF) contracts for environmental work only, provided the environmental work is not classified as construction, as defined by 10 U.S.C. 2801.

(2) Requests for approval of cost-plus-fixed-fee contracts requiring SECDEF approval shall be routed through NAVFACENGCOM and then via DASN(AP) by email at RDAJ& with the subject “DFARS 216.306 – CPFF Contract Approval.”


5216.401 (FAR 16.401) General.

(d) HCAs may delegate signature authority for approval of required D&Fs as follows:

(1) Award-fee contract types. D&F signature authority is delegable to no lower than the Deputy/Assistant Commander for Contracts. HCAs shall submit copies of approved D&Fs for cost-plus-award-fee (CPAF) contracts to DASN(AP) by email at RDAJ& with the subject “FAR 16.401 – HCA CPAF D&F [ACAT Program Designation Number, Description, and Activity Name]” as follows:

(i) All D&Fs for contracts of ACAT I Programs: Within 15 days after approval.

(ii) D&Fs for contracts of non-ACAT I programs valued $50,000,000 or more (including options): Within 30 days after approval.

(2) Other incentive contracts. D&F signature authority is delegable no lower than one level above the Contracting Officer.


5216.504 (DFARS 216.504) Indefinite-quantity contracts.

(c)(1)(ii)(D) Limitation on single award contracts.

(i) ASN(RDA) is the approval authority for all determinations over $112,000,000. Submit all determinations over $112,000,000 to DASN(AP) by email at RDAJ& with the subject “DFARS 216.504 - Single Award [contract/task/delivery order number]”.

5216.504-90 Limitation on single award task or delivery order contracts valued at or below $112,000,000.

(a) Policy. Unless exempted by (b) below, single awards of task or delivery order contracts valued at or below $112,000,000 require HCA approval.

(b) Exemptions. The following categories of contracts are exempt from the requirement for HCA approval for single awards of task or delivery order contracts:

(1) Competitively awarded contracts which provide only for firm fixed unit price task or delivery order contracts for products or services where unit prices are established in the contract;

(2) Only one qualified offer received under a competitive solicitation (the circumstances for award must be addressed in the business clearance);

(3) Contracts for Foreign Military Sales (FMS) awarded to a directed source;

(4) Requirements contracts supported by approved STRAPs /acquisition strategies/MOPAS-Ss;

(5) Contracts supported by a sole source Justification and Approval under FAR Part 6;

(6) Sole source contracts awarded under Section 8(a) of the Small Business Act;

(7) Contracts with a total estimated value less than $7,000,000; and

(8) Architect-Engineer contracts awarded under FAR Subpart 36.6.

(c) Combination contracts. For contracts where the only products or services to be acquired by issuance of task or delivery orders are incidental to the overall effort under the contract, and the overwhelming preponderance of the work is defined and priced at the outset, the threshold for approval is based on the estimated value of the incidental services.

5216.505 (DFARS 216.505) Ordering.

(b)(5) The task order contract and delivery order contract ombudsman responsible for reviewing complaints from contractors on task order contracts and delivery order contracts is the Navy Competition Advocate General. Contractors should be encouraged to settle their complaints through the Competition Advocate chain of command, seeking review by the Command Competition Advocate at the cognizant HCA before taking their complaints to the Navy Competition Advocate General.

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