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NMCARS ANNEX 2 - BUSINESS CLEARANCE MEMORANDUM

ANNEX 2 - BUSINESS CLEARANCE MEMORANDUM

BUSINESS CLEARANCE MEMORANDUM

Number _______________

SECTION I – COVER AND SIGNATURE PAGES

Type of Procurement Action:

Sealed Bidding

Full and Open Competition

Negotiated Under 10 U.S.C. 2304(b)( )

Negotiated Under 10 U.S.C. 2304(c)( )

_____ Negotiated Under 40 U.S.C. 541 Brooks Act

Negotiated Pursuant to Changes Clause

_____ Claim Settlement

Definitization of Letter Contract

Final Price (Incentive, Redeterminable, or EPA)

Type of Clearance:

Pre-Negotiation

Post Negotiation

Letter Contract

Solicitation/Contract Number:

Activity:

Contractor(s):

Name:

City/State:

Program:

Description of Supplies/Services:

Pricing Structure: Proposal Pre-Negotiation Post-Negotiation

Cost (Excluding COM)

Cost of Money

Total Cost

Fee/Profit ( %)

Base Fee ( %)

Award Fee ( %)

Total

Ceiling Price

Sharing Arrangement:

Clearance Total:

Performance Period:

Start Finish

Or Deliveries:

First Final

Prepared By:

Name:

Title:

Phone:

Date:

Recommendation:

(Note: Per FAR 15.404-4(c)(4)(ii), the Contracting Officer’s signature on the price negotiation memorandum documents that the statutory price or fee limitations have not been exceeded.)

Contracting Officer:

Signature: ____________________________

Printed Name:

Phone:

Date

Legal Counsel (If applicable):

Signature: ____________________________

Printed Name:

Phone:

Date:

Reviewer (If applicable):

Signature: ____________________________

Printed Name/Title:

Phone:

Date:

Approval (If other than Contracting Officer):

Signature: ____________________________

Printed Name/Title:

Phone:

Date:

        Unconditional Approval _____

Not Approved _____

Conditional Approval _____

Conditions (If applicable):

SECTION II. KEY DOCUMENTS/EXHIBITS/ATTACHMENTS.

A. Summary of Key Documents. Identify and date each key document.

1. Acquisition Strategy/Plan

2. Procurement Request:

3. Solicitation:

4. Contractor(s)Proposal(s):

5. Proposal Evaluation Reports (as applicable)

DCAA Report(s):

ACO Report(s):

Technical Advisory Report:

Cost Advisory Report:

Past Performance Report

Management Evaluation Report

6. Other documents as appropriate:

B. Attachments. List in the order they appear in the body of the clearance. Attachments may include the following:

Section III: PRE-SOLICITATION INFORMATION.

[Note: A business clearance documents compliance with law, executive orders, regulations, and policy (FAR 1.602-2). It will become the record showing good business judgment was exercised throughout the procurement process. The business clearance should document the principal elements of a negotiated agreement for the contract file (FAR 15.406-3).]

State the purpose of the business clearance memorandum, such as a request to enter negotiations, a request for Letter Contract approval, or a request for approval to award.

A. Description of Supplies/Services. Include quantities, delivery schedules, options, and any other information to clearly explain what is included in the procurement. If appropriate, a chart format or attachment could be used to provide detail.

B. Background.

1. Procurement history.

2. Acquisition environment.

C. Independent Government Estimate (IGE) (FAR 36.203 for construction, FAR 36.605 for architect-engineer). Address the matters specified in USD(AT&L) DPAP’s September 17, 2007 memo titled “Contracting Practices – Independent Government Estimates, Government Surveillance, and Contract Quality Assurance” as follows:

1. Method used for IGE development.

2. Assumptions made.

3. Information estimating tools used.

4. Source of information.

5. Compare estimates for previous procurements with the prices paid.

D. Type of Contract.

1. Identify contract type and, for other than firm fixed price contracts, summarize rationale for selection (FAR 16.104) including consideration of technical, schedule, and cost risks.

2. For development contracts, address compliance with approval requirements of DFARS 235.006.

3. For incentive (FAR 16.4) or redeterminable (FAR 16.205/206) contracts, discuss provisions of the pricing structure. Describe Government defined share ratios, ceilings, economic price adjustments (DFARS 216.203), and any other aspects of the pricing structure.

4. For award fee contracts (FAR 16.404, 16.405-2, DFARS PGI 216.401(e)(i)), summarize the award fee plan (or use attachments):

5. Cite justification for use of options in accordance with FAR 17.205.

E. Source Selection Planning.

1. For competitive acquisitions using the source selection process:

2. For construction procurements using prequalification procedures, the clearance should address the factors at DFARS 236.272 and the results of the pre-qualification process.

3. For two-phase design-build solicitations, the evaluation factors at FAR 36.303 should be addressed. For architect-engineer solicitations, the requirements of FAR 36.602 should be addressed.

F. Special Provisions. Discuss any special provision not included in discussion under Type of Contract above, such as the following:

1. Deviations from FAR, DFARS, NMCARS, or other DoD or Departmental regulations (DFARS Subpart 1.4/NMCARS 5201.403).

2. Unusual controverted (disputed) cost clauses/re-opener clauses.

3. Design to Cost (FAR 7.105(a)(3)(i)).

4. Organizational Conflicts of Interest (FAR 9.504).

5. Small business incentive (FAR 19.705-5(a)(4) and DFARS 19.203).

6. Wage determinations required by the Labor Standards Statute (FAR 22.1003-1) or the Construction Wage Rate Requirements Statute (FAR 22.402 and 22.403-1).

7. Source Restrictions, such as Buy American or 10 U.S.C 2533a or b (FAR Part 25/DFARS Part 225).

8. Rights in technical data (FAR Part 27/DFARS Part 227).

9. Unusual contract financing clauses, i.e., milestone billings, advance payments etc. (FAR Part 32/DFARS Part 232).

10. Government Furnished Equipment/Material/Property (FAR Part 45/DFARS Part 245).

11. Special Tooling and Test Equipment (FAR 45.306 & 307)

12. Warranty provisions to include cost benefit analysis (DFARS 246.704) and approval.

13. Security Classification (DD Form 254)

G. Solicitation Review and Compliance.

1. Discuss whether the solicitation is in agreement with the Acquisition Strategy and Acquisition Plan. If not, discuss the differences and the circumstances which necessitated the changes from the planning documents.

2. Discuss whether a legal review of the solicitation was obtained prior to issuance.

H. Synopsis. Give date of synopsis in Governmentwide Point of Entry (GPE). If procurement was synopsized in a location other than GPE, provide information.

SECTION IV – PRE-SOLICITATION COMPLIANCES (If approval/determination was included in another document, please note):

Check if N/A

DOCUMENT/APPROVAL CHECKLIST

Document Number, Approving Official & Date

 

Acquisition Strategy (FAR 34.004) or Management Oversight Process for Acquisition of Services (NMCARS 5237.503)

 
 

Acquisition Plan (DFARS 207.103)

 
 

Waiver of Synopsis (FAR 5.202)

 
 

Determinations and Findings (D&F) to exclude a source (FAR 6.202)

 
 

Determination and Findings (D&F) for the Public Interest circumstances permitting Other Than Full and Open Competition (FAR 6.302-7)

 
 

Justification for Other Than Full and Open Competition (FAR 6.303)

 
 

Bundling contract requirements (FAR 7.107(c))

 
 

Determination to consolidate contract requirements (DFARS 207.170-3)

 
 

Determination of Commercial Item for FAR Part 12 Over $1M (DFARS 212.102(a)(i)

 
 

Determination to Use Commercial T&M or LH contract (FAR 12.207)

 
 

Source Selection Plan (DFARS 215.303)

 
 

Contract type determination (FAR 16.102(d))

(See FAR 16.601(d)(1) for Time & Materials or Labor Hours)

 
 

Award Fee Plan (FAR 16.405-2(b), PGI 216.405-2, PGI 216.470)

 
 

HCA Determination to Use CPAF (DPAP memo April 24, 2007)

 
 

Use of contract terms in excess of five years (FAR 17.204(e))

 
 

Use of non-DoD contract vehicle (NMCARS 5217.7802)

 
 

DD Form 2579 Small Business Coordination Record (DFARS 219.201)

 
 

Approval for expedited completion date for MILCON (DFARS 236.270)

 
 

Authority to Contract out for Personal Services (NMCARS 5237.104(b)(i))

 
 

Determination of Personal/Non-Personal Services (FAR 37.103)

 
 

Non-performance based acquisition (DFARS 237.170-2)

 
 

Government-Furnished Property Compliance Checklist (NMCARS 5245.103-73)

 
 

Approval to use warranty (DFARS 246.704)

 

SECTION V – SOLICITATION.

Discuss events during the solicitation process.

A. Pre-bid conferences (FAR 14.207), pre-solicitation conferences (other than Industry Days described in Section III above), pre-construction orientations, or other exchanges with industry before receipt of proposal (FAR 15.201).

B. How the solicitation was made available.

C. Questions received and answered.

D. Amendments issued and resultant changes to acquisition planning.

E. Protests before closing of the solicitation.

F. Extent competition solicited and secured. Include information on contractors expressing interest during the solicitation period and offers received in response to the solicitation. If any offerors not submitting a proposal gave an explanation for their decision not to submit a proposal, summarize the explanation. If only one offer was received, explain why the proposal will or will not be considered competitive.

G. Oral presentations (FAR 15.102). If oral presentations were used, summarize the process including which parts of the proposal were presented orally and participants. Content of oral proposals should be included in sections on evaluation below.

H. Summary table of proposals. Show a summary table of offerors' prices and ratings/evaluation for each factor required by the solicitation such as technical, past performance, other non-cost factors, and cost. Attachment may be used.

SECTION VI – PRE-NEGOTIATION ANALYSIS.

[The business clearance should be a stand-alone document which explains the offer(s) and the Government’s evaluation of the offer(s). An understanding of the development of each position is important to be adequately prepared for negotiations, to determine a competitive range, or to decide to award without negotiations. This section should be tailored to the specific solicitation’s procedures for evaluation of cost/price and other non-cost factors included in the solicitation.]

Document the methodology used by the offeror(s) in developing the proposal(s) both from cost and non-cost stand-points and the methodology used by the Government in developing its negotiation position(s). Include discussion of recommendations from field pricing/technical/audit reviews, which recommendations were or were not used and why the recommendations used were considered appropriate for use in developing the Government’s independent pre-negotiation position(s).

Address each factor used for evaluation as follows:

A. Technical Evaluation (FAR 15.305(a)(3)). For each subfactor under the technical factor, give the adjectival ratings or raw scores for each offeror. Show the weighting or other means of determining the overall score for the factor (15.305). Discuss any clarifications obtained in the process of the evaluation or other communications with offerors before establishment of the competitive range (FAR 15.306). Summarize the technical weaknesses and deficiencies of each offeror.

B. Past Performance Evaluation (FAR 15.305(a)(2)). For each subfactor under the past performance factor, give the adjectival ratings or raw score for each offeror. Show the weighting or other means of determining the overall score for the factor. Discuss any clarifications obtained in the process of the evaluation or instances where an offeror was given access to adverse past performance information to which the offeror had not previously had an opportunity to respond (FAR 15.306). Summarize weaknesses or deficiencies of each offeror. This factor should include evaluation of past performance under subcontracting plans if required by DFARS 215.305(a)(2).

C. Other Non-Cost Factor Evaluation. For each subfactor under any non-cost evaluation factor, give the adjectival or raw score for each offeror. Show the weighting or other means of determining an overall score for the factor. Discuss any clarifications obtained in the process of the evaluation or other communications with offerors before establishment of the competitive range (FAR 15.306). Summarize the weaknesses and deficiencies of each offeror.

D. Cost/Price and Profit/Fee Analysis (FAR 15.305(a)(1)). [Evaluation of proposals may be done through cost analysis, price analysis, or a combination of the two techniques. The necessity for a separate profit/fee analysis is dependent on the extent of price analysis (FAR 15.404(c)(1) and DFARS 215.404(c)(1)).]

1. Price analysis (FAR 15.404-1(b)).

2. Cost evaluation (FAR 15.404-1(c)).

ELEMENT

PROPOSED

AUDIT

FIELD

PRE-NEG

         

Material

       

Material O/H

       

Labor

       

Labor O/H

       

Subcontracts

       

ODCs

       

G&A

       
         

Subtotal

       

COM

       

Fee/Profit

       
         

TOTAL

       

3. Pre-Negotiation Profit/Fee Analysis.

SECTION VII – OTHER PRE-NEGOTIATION INFORMATION.

A. Comparison of pre-position to historical prices in constant and then year dollars, if not done as part of cost or price analysis.

B. If applicable, discuss exemptions requested to Buy American, Berry Amendment, specialty metals restrictions, or other requirements of the solicitation.

C. If data for competitive reprocurement is being purchased, discuss cost, delivery and whether the Government will get unlimited rights.

D. If applicable, discuss the requirement of FAR 45.306 and 45.307 with regard to the acquisition of Special Test Equipment and/or Special Tooling.

E. If applicable, identify offerors and attendees at pre-negotiation and fact finding sessions. Document when sessions were held and what was included in discussions. Identify any other exchanges with offerors after receipt of proposals. (FAR 15.306)

F. Not-to-exceed prices

SECTION VIII - DECISION TO PROCEED.

Summarize the course of action decided based on the information set forth in the business clearance to this point.

A. Competitive range (FAR 15.306(c)). Include a determination and supporting discussion of offerors determined to be within and outside the competitive range.

B. Indicate whether discussions/negotiations are necessary or why they will generate a better value to the Government.

C. If award is to be made without discussions, briefly discuss why (FAR 15.306(a)).

SECTION IX – PRE-AWARD COMPLIANCES (If competitive, document specific information for each offeror):

Check if N/A

DOCUMENT/APPROVAL CHECKLIST

DATE

 

Review of Online Representations & Certifications Application (FAR 4.1201(c))

 
 

Determination of Responsibility (FAR 9.103) and financial stability (FAR 9.104-1(a)).

 
 

HCA Waiver of Cost or Pricing Data (FAR 15.403-1)

 
 

Certificate of Current Cost or Pricing Data (FAR 15.406-2)

 
 

Approved Make or Buy Plan (FAR 15.407-2)

 
 

Contractor’s Estimating System determined acceptable by ACO (DFARS 215.407-5)

 
 

Pre-Award Disclosure Statement - Cost Accounting Practices and Certification (FAR 15.408)

 
 

Contractor’s Accounting System determined adequate by CAO/DCAA (FAR 16.301-3)

 
 

Determination to make single award for IDIQ Advisory and Assistance Services over 3 years and $11.5M (FAR 16.504(c)(2)(A) or (B))

 
 

Subcontracting Plan determined adequate (FAR 19.705-4)

 
 

Approval of SDB subcontracting goal less than 5% (DFARS 219.705-4)

 
 

EEO compliance requested/obtained (FAR 22.805).

 
 

Disclosure Statement determined current, accurate and complete by ACO (FAR 42.302(a)(11)).

 
 

Contractor EVMS verified compliant with DoD criteria by DCMA (DFARS 242.302(S-71)).

 
 

Contractor Purchasing System determined to be approved by the ACO (FAR 44.304)

 
 

Property System reviewed for acceptability by ACO (FAR 45.105).

 
 

Compliance with DoD Instruction 7640.02

 

SECTION X – POST-NEGOTIATION

A. Update events since pre-negotiation clearance approved. Discuss when pre-negotiation clearance was approved, conditions of the approval, how these conditions were resolved and where in the clearance these conditions are discussed.

B. Negotiations. Discuss when negotiations were conducted, with which contractor(s), and the participants. Discuss requests for final proposal revisions (FAR 15.307).

C. Elimination from Competitive Range. Discuss Contracting Officer decision to no longer include contractor(s) in the competitive range and issuance of written notices (FAR 15.306(c)(3)).

D. Results of Negotiation

1. Provide a summary comparison in columnar format of the respective positions of contractor(s) proposal(s), pre-negotiation objective(s), and post-negotiation position(s), by element of cost.

ELEMENT

PROPOSED

PRE-NEG

POST-NEG

       

Material

     

Material O/H

     

Labor

     

Labor O/H

     

Subcontracts

     

ODCs

     

G&A

     
       

Subtotal

     

COM

     

Fee/Profit

     
       

TOTAL

     

E. Competitive acquisitions.

1. Discuss source selection evaluation factors and other considerations which support the award recommendation. Discuss rationale for selection of source(s) including trade-offs between price and non-price factors. If circumstances warrant, discuss financial stability of contractor.

2. Discuss source selection decision (FAR 15.308). If the Business Clearance Memorandum will serve as the sole record of the source selection decision, include language specifying such a determination, such as “I, [Name], the Source Selection Authority for this procurement, have independently reviewed all evaluations and recommendations provided herein. As a result of such review, I have determined [Contractor Name] to be the awardee.”

F. If pre-contract costs (FAR 31.205-32) or any other form of advance agreement (FAR 31.109) has been or will be authorized, discuss the justification for use, limitations included, and approvals obtained.

G. Other Information pertinent to the clearance not previously addressed.

H. Attachments, as needed or if updated from Pre-Negotiation Clearance.

1. Certificate of Current Cost or Pricing Data

2. DD Form 1547 and DD Form 1861.

3. Incentive share arrangements.

4. Special clauses.

5. Source Selection Decision Memorandum.

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