afac2003-0402

AFAC Apr040203

Air Force Acquisition Circular (AFAC) 2003-0402

2 April 2003

FOR ADDITIONAL INFORMATION CONTACT: SAF/AQCP, 1060 Air Force Pentagon, Washington, DC 20330-1060, (703) 588-7058.

Summary of Changes

Item Subpart - Reason for Change

I 5301.601 - Revised to reflect the Commander, Air Force Reserve Command (AFRC), is designated as a Head of Contracting Activity (HCA) for "Other Contracting."

II 5306.302-4 - Revised to clarify that the authority to prepare International Agreement Competitive Restrictions (IACRs) is delegated from the HCA to the contracting officer.

III 5307.104-90 - Revised to reflect changes in the designated chairperson for Acquisition Strategy Panels (ASPs).

IV 5307.104-91 - Revised to change references from PDASAF(A&M) to ASAF(A) and to better reflect the approval authorities for acquisition strategies.

V 5323.8 - Revised to clarify requiring activity and contracting officer responsibilities for addressing Class I Ozone Depleting Substances (ODSs)

VI 5323.91 - Clerical addition of a header for Subpart 5323.91 - Enhanced Security of Products.

VII 5323.92 - Addition of Subpart and clause prescription for solicitation and contracts containing requirements for "mission essential contractor services."

VIII 5333.290 - Revised to decrease the review threshold for Requests for Equitable Adjustments from $1,000,000 to $500,000.

IX 5333.291 - Revised to make SAF/GCD (vice SAF/GCQ) the point of contact on reviews of claims and terminations for default. In addition, decreased the review threshold from $1,000,000 to $500,000.

X 5352.223-9000 - Revised to more clearly notify the contractor that the use of Class I ODSs in the testing, operation or maintenance of a system or subsystem is specifically prohibited without prior Senior Acquisition Official (SAO) approval.

XI 5352.223-9002 - Addition of clause entitled, "Requirements Affecting Contractor Personnel Performing Mission Essential Services."

XII 5352.242-9000 - Clerical revision to reflect that the clause was updated in Jun 2002.

XIII 5304.404-90 - Revised to delete the reference to clause 5352.204-9001.

XIV 5352.204-9000 - Clerical addition of wording to clarify paragraph (b) wording from "security agreement" to "Visitor Group Security Agreement."

XV 5352.204-9001 - Clause deleted.

XVI 5301.601(a)(ii) and 5302.101 (Head of the agency definition) - Revised to delete the reference to the Principal Deputy Assistant Secretary of the Air Force (Acquisition and Management) (PDASAF(A&M)).

XVII 5306.304(a)(3), and 5315.303(a)(i) - Revised to change PDASAF(A&M) references to ASAF(A).

XVIII 5302.101 - Revised to delete the references to DoDI 5000.2 in the definitions for Acquisition Category, Milestone Decision Authority, and Program Executive Officer.

XIX 5307.104(iv)(A) and 5307.104-91(b)(2) /(b)(3) - Revised to change the references "in accordance with paragraph C2.1.4 of DoD 5000.2-R" and "in accordance with paragraph C2.1.4 of DoD 5000.2-R" to "in accordance with OSD(AT&L) guidance."

Note: "*****" below indicates that text is omitted.

AFAC Changes

I 5301.601 - Revised to reflect the Commander, Air Force Reserve Command (AFRC), is designated as a Head of Contracting Activity (HCA).

Supplementary information about the change: On 18 December 2002, the Deputy Assistant Secretary (Contracting) designated the Commander, Air Force Reserve Command (AFRC), as an HCA for "Other Contracting."

5301.601 General.

(a)(i) Heads of Contracting Activities (HCAs).

(A) PEOs and DACs are the HCAs for their assigned programs and acquisitions; however, this designation of HCA does not automatically include "Other Contracting" authority--See paragraph (B) below for the designation of HCAs for "Other Contracting". Delegation of HCA authority or establishing a designee for the HCA is not authorized unless specifically stated otherwise elsewhere in the AFFARS.

(B) The commanders (and when the commander is absent, the vice commanders) of the following organizations are the HCAs for "Other Contracting": Air Combat Command (ACC), Air Education and Training Command (AETC), Air Force Reserve Command (AFRC), Air Mobility Command (AMC), Air Force Materiel Command (AFMC), Air Force Space Command (AFSPC), Pacific Air Forces (PACAF), and United States Air Forces in Europe (USAFE). The lowest level that HCA authority may be delegated by AFMC and AFSPC is the SCCO, and for the commands listed above to the headquarters staff official with overall responsibility for contracting, unless specifically stated otherwise in the AFFARS.

(C) The DAS(C) is the HCA for the following organizations: 11^th Wing, Air Force Special Operations Command (AFSOC), United States Air Force Academy (USAFA), and Air Force Operational Test and Evaluation Center (AFOTEC). The commanders of these organizations are designated as the designee for the HCA, with the power to redesignate/redelegate. HCA authority shall not be delegated/designated lower than the level of the staff officer with overall responsibility for contracting in the organization, unless specifically stated otherwise elsewhere in the AFFARS.

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II 5306.302-4 - Revised to clarify that the authority to prepare International Agreement Competitive Restrictions (IACRs) is delegated from the HCA to the contracting officer.

Supplementary information about the change: None.

5306.302-4 International agreement.

(c) Limitations. The document referred to in DFARS 206.302-4(c) should be titled, "International Agreement Competitive Restrictions (IACR)." The authority to prepare IACRs is delegated from the HCA to the contracting officer. The contracting officer shall include the IACR and a copy of the associated Letter of Offer and Acceptance in the contract file.

III 5307.104-90 - Revised to reflect changes in the designated chairperson for Acquisition Strategy Panel (ASPs).

Supplementary information about the change: None.

5307.104-90 Acquisition Strategy Panels (ASPs).

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(b) ASP chairpersons.

(1) For non-space related PEO or DAC programs, the PEO or DAC is the ASP chairperson.

(2) For space related ACAT I programs, USECAF is the ASP chairperson.

(3) For space related ACAT II and III programs, the PEO is the ASP chairperson.

(4) For AFPEO/SV acquisitions, the PEO is the ASP chairperson.

(1) Based on the unique requirements of each acquisition, the ASP chairperson shall determine the panel membership and the required content for each ASP that he/she chairs.

(2) For all non-space ACAT I programs, the ASP chairperson shall use the non-space SAE panel, tailored as necessary. The SAF/AQC ASP Secretariat will facilitate the ASP meetings. Refer to Part 7 of the SAF/AQC Contracting Toolkit ( http://www.safaq.hq.af.mil/contracting/toolkit/) for ASP and SAE panel information.

(3) For all space ACAT I programs, the ASP chairperson shall use the space SAE panel, tailored as necessary. SAF/USA will administer this panel, consulting with SAF/AQC as necessary. Refer to Part 7 of the SAF/AQC Contracting Toolkit ( http://www.safaq.hq.af.mil/contracting/toolkit/) for basic ASP information and refer to the SAF/USA website ( http://www.safus.hq.af.mil/usa) for National Security Space Acquisition Policy related to modifications to the ASP process and for space SAE panel information.

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IV 5307.104-91 - Revised to change references from PDASAF(A&M) to ASAF(A) and to better reflect the approval authorities for acquisition strategies.

Supplementary information about the change: None.

5307.104-91 Air Force procedures for Single Acquisition Management Plans (SAMPs)/Integrated Program Summaries (IPSs).

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(b) Approval requirements.

(1) For non-space related ACAT ID programs, ASAF(A) is the SAMP approval authority. However, the acquisition strategy aspects of the SAMP require additional approval by USD(AT&L), as the MDA, in accordance with paragraph C2.1.4 of DoD 5000.2-R.

(2) For non-space related ACAT IAM programs, ASAF(A) is the SAMP approval authority. However, the acquisition strategy aspects of the SAMP require additional approval by ASD(C3I), as the MDA, in accordance with paragraph C2.1.4 of DoD 5000.2-R.

(3) For non-space related ACAT IC and IAC programs, ASAF(A) is the SAMP approval authority.

(4) For space related ACAT I programs, the USECAF, as the DoD Space MDA, is the IPS approval authority and approves the IPS via the Defense Space Acquisition Board (DSAB) process.

(5) For non-space related ACAT II programs, the PEO or DAC is the SAMP approval authority.

(6) For space related ACAT II programs, the PEO is the SAMP and/or acquisition strategy approval authority. (The IPS is approved by the PEO with a decision to proceed from the PEO Space Acquisition Board.)

(7) For non-space related ACAT III programs, if a SAMP is prepared, the PEO or DAC is the SAMP approval authority.

(8) For space related ACAT III programs, if a SAMP is prepared, the PEO is the SAMP and/or acquisition strategy approval authority.

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V 5323.8 - Revised to clarify requiring activity and contracting officer responsibilities for addressing Class I Ozone Depleting Substances (ODSs)

Supplementary information about the change: None.

SUBPART 5323.8 - OZONE-DEPLETING SUBSTANCES (ODSs)

5323.804 Contract clauses.

(a) Unless a requiring activity obtains a Senior Acquisition Official (SAO) approval in accordance with AFI 32-7086, Hazardous Materials Management, Chapter 4, solicitations or contracts may not include any specification, standard, drawing, or other document that:

(1) Requires the use of a Class I ODS in the manufacture, test, operation, or maintenance of any system, subsystem, item, component, or process; or

(2) Establishes a test, operation, or maintenance requirement that can only be met by use of a Class I ODS.

(b) Requiring activities must provide to the contracting officer either:

(1) A certification that there are no Class I ODS requirements, or

(2) A copy of a SAO approval for each Class I ODS requirement.

(c) If the requiring activity does not provide the certification statement, the contracting officer shall include the clause at 5352.223-9000, Elimination of Use of Class I Ozone Depleting Substances (ODSs), in solicitations and contracts.

VI 5323.91 - Clerical addition of a header for Subpart 5323.91 - Enhanced Security of Products.

Supplementary information about the change: None.

SUBPART 5323.91 - ENHANCED SECURITY OF PRODUCTS

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VII 5323.92 - Addition of Subpart and clause prescription for solicitation and contracts containing requirements for "mission essential contractor services."

Supplementary information about the change: None.

SUBPART 5323.92 - CONTRACTOR PERSONNEL PERFORMING MISSION ESSENTIAL SERVICES

5323.9201 Contract clause.

The contracting officer shall insert the clause at 5352.223-9002 - Requirements Affecting Contractor Personnel Performing Mission Essential Services, in solicitations and contracts that require contractors to perform mission essential services.

VIII 5333.290 - Revised to decrease the review threshold for Requests for Equitable Adjustments from $1,000,000 to $500,000.

Supplementary information about the change: None.

5333.290 - Revised to decrease the review threshold for Requests for Equitable Adjustments from $1,000,000 to $500,000.

5333.290 Requests for equitable adjustment (REA).

The contracting officer shall use ADR to the maximum extent practicable to resolve a REA when unassisted negotiations reach an impasse. The contracting officer shall refer to AFMCLO/JAB, with a copy to SAF/GCD, any REA greater than $500,000 in which unassisted negotiations have reached an impasse in order to develop a dispute resolution strategy.

Supplementary information about the change: None.

5333.291 Claims and terminations for default.

(a) If a contractor submits an uncertified claim exceeding $100,000, the contracting officer shall notify the contractor, in writing, of its failure to certify as required by the Contract Disputes Act (41 U.S.C. 601-613). The notice shall state that a final decision will not be issued until the claim is certified.

(b) Prior to making a final decision on a claim or termination for default, the contracting officer shall refer the proposed final decision to the cognizant legal office for legal advice, ADR suitability and appropriate dispute resolution strategies. The contracting officer, with the assistance of the cognizant legal office, shall seek review by AFMCLO/JAB of all proposed final decisions. At the same time, the contracting officer shall provide SAF/GCD with any proposed final decision on a claim involving PEO programs, any proposed final decision on a claim greater than $500,000, or any proposed termination for default with estimated excess reprocurement costs greater than $500,000.

Supplementary information about the change: See Item V. above.

5352.223-9000 Elimination of Use of Class I Ozone Depleting Substances (ODSs).

As prescribed in 5323.804, insert the following clause in solicitations and contracts:

ELIMINATION OF USE OF CLASS I OZONE DEPLETING SUBSTANCES (ODSs) (APR 2003)

(a) Unless the requiring activity has obtained prior Senior Acquisition Official (SAO) approval, contractors may not:

(1) Provide any service or product with any specification, standard, drawing, or other document that requires the use of a Class I ODS in the test, operation, or maintenance of any system, subsystem, item, component, or process; or

(2) Provide any specification, standard, drawing, or other document that establishes a test, operation, or maintenance requirement that can only be met by use of a Class I ODS.

(b) For the purposes of Air Force policy, the following products that are pure (i.e., they meet the relevant product specification identified in AFI 32-7086) are Class I ODSs:

(1) Halons: 1011, 1202, 1211, 1301, and 2402;

(2) Chlorofluorocarbons (CFCs): CFC-11, CFC-12, CFC-13, CFC-111, CFC-112, CFC-113, CFC-114, CFC-115, CFC-211, CFC-212, CFC-213, CFC-214, CFC-215, CFC-216, and CFC-217, and the blends R-500, R-501, R-502, and R-503; and

(3) Carbon Tetrachloride, Methyl Chloroform, and Methyl Bromide.

Class I ODS/ Application or Use/Quantity (lbs.) per contract period of performance

[List each Class I ODS, its applications or use and the approved quantities for use throughout the length of the contract. If "None," so state.]

(d) The offeror/contractor is required to notify the contracting officer if any Class I ODS that is not specifically listed above is required in the test, operation, or maintenance of any system, subsystem, item, component, or process.

(End of clause)

XI 5352.223-9002 - Addition of clause entitled, "Requirements Affecting Contractor Personnel Performing Mission Essential Services."

Supplementary information about the change: None.

5352.223-9002 -- Requirements Affecting Contractor Personnel Performing Mission Essential Services

As prescribed in 5323.9201, insert the following clause in Section I:

5352.223-9002 -- Requirements Affecting Contractor Personnel Performing Mission Essential Services (APR 2003)

(a) The Contracting Officer has identified all or a portion of the services performed under this contract as "Essential DoD Contractor Services" as defined and described in DoD Instruction (DoDI) 3020.37, "Continuation of Essential DoD Contractor Services During Crises." Hereafter, the personnel identified by the contractor to perform these services shall be referred to as "Mission Essential Contractor Personnel."

(b) Within (insert the number of days required to institute any necessary safety and health precautions) days after contract award or incorporation of this clause into a contract by modification, the Contractor shall provide a written list of all "Mission Essential Contractor Personnel" to the Contracting Officer or designee. The list shall identify names and country(ies) where each employee will perform work under this contract.

(c) As required to comply with or perform pursuant to DoD or Air Force requirements, the contracting officer shall direct the contractor to comply with requirements intended to safeguard the safety and health of Mission Essential Contractor Personnel. The Contracting Officer may communicate the requirements through a letter of notification or other means, and subsequently modify the contract to incorporate the requirements via full text or by reference. The Contractor may file a proposal for cost or other impacts under the Changes clause or a Request for Equitable Adjustment.

(d) This clause shall be inserted in all subcontracts meeting the criteria in paragraph (a) of this clause.

(End of Clause)

XII 5352.242-9000 - Clerical revision to reflect that the clause was updated in Jun 2002.

Supplementary information about the change: None.

5352.242-9000 Contractor access to Air Force installations.

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CONTRACTOR ACCESS TO AIR FORCE INSTALLATIONS (JUN 2002)

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XIII 5304.404-90 - Revised to delete the reference to clause 5352.204-9001.

Supplementary information about the change: The requirement of clause 5352.204-9001 was merged into 5352.204-9000 in AFAC 2002-1122.

5304.404-90 Additional contract clauses.

The contracting officer shall insert the clause at 5352.204-9000, Notification of Government Security Activity and Visitor Group Security Agreements in solicitations and contracts which require a DD Form 254 for performance on U.S. Government installations and overseas. The contracting officer can change the number of days specified in 5352.204-9000(a). If less than thirty days is used, coordinate with the security police activity.

XIV 5352.204-9000 - Clerical addition of wording to clarify paragraph (b) wording from "security agreement" to "Visitor Group Security Agreement."

Supplementary information about the change: None.

5352.204-9000 Notification of Government security activity and visitor group security agreements.

As prescribed in 5304.404-90, insert the following clause in solicitations and contracts:

NOTIFICATION OF GOVERNMENT SECURITY ACTIVITY AND VISITOR GROUP SECURITY AGREEMENTS (APR 2003)

This contract contains a DD Form 254, DOD Contract Security Classification Specification, and requires performance at a government location in the U.S. or overseas. Prior to beginning operations involving classified information on an installation identified on the DD Form 254, the contractor shall take the following actions:

(a) At least thirty days prior to beginning operations, notify the security police activity shown in the distribution block of the DD Form 254 as to:

(1) The name, address, and telephone number of this contract company's representative and designated alternate in the U.S. or overseas area, as appropriate;

(2) The contract number and military contracting command;

(3) The highest classification category of defense information to which contractor employees will have access;

(4) The Air Force installations in the U.S. (in overseas areas, identify only the APO number(s)) where the contract work will be performed;

(5) The date contractor operations will begin on base in the U.S. or in the overseas area;

(6) The estimated completion date of operations on base in the U.S. or in the overseas area; and

(7) Any changes to information previously provided under this clause.

This requirement is in addition to visit request procedures contained in DOD 5220.22-M, National Industrial Security Program Operating Manual.

(b) Prior to beginning operations involving classified information on an installation identified on the DD Form 254 where the contractor is not required to have a facility security clearance, the contractor shall enter into a Visitor Group Security Agreement (or understanding) with the installation commander to ensure that the contractor's security procedures are properly integrated with those of the installation. As a minimum, the agreement shall identify the security actions that will be performed:

(1) By the installation for the contractor, such as providing storage and classified reproduction facilities, guard services, security forms, security inspections under DOD 5220.22-M, classified mail services, security badges, visitor control, and investigating security incidents; and

(2) Jointly by the contractor and the installation, such as packaging and addressing classified transmittals, security checks, internal security controls, and implementing emergency procedures to protect classified material.

(End of clause)

XV 5352.204-9001 - Clause deleted.

Supplementary information about the change: The requirement of clause 5352.204-9001 was merged into 5352.204-9000 in AFAC 2002-1122.

Supplementary information about the change: None.

5301.601 General.

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(ii) In accordance with Secretary of the Air Force Order (SAFO) 101.1 dated 5 Jun 99 and ASAF(A) memorandum regarding "Delegation of Contract and Agreement Authority" dated 30 Nov 99, the authority to enter into, approve, terminate, and take all other appropriate actions with respect to contracts, is delegated from the Secretary of the Air Force and ASAF(A) to the DAS(C) and Associate Deputy Assistant Secretary (Contracting). This authority is hereby redelegated to MAJCOM and DRU commanders. This authority may be redelegated with or without the authority to make successive redelegations and under such terms, conditions, and limitations as may be deemed appropriate. This delegation is a general one, and all other existing or future authority, to the extent that it would, expressly or by reasonable implication, limit the scope of this delegation or impose conditions or restrictions upon the exercise of the authority delegated, will be controlling over it.

5302.101 Definitions.

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"Head of the agency" means, pursuant to Secretary of the Air Force Order 101.1, the Assistant Secretary of the Air Force (Acquisition) (ASAF(A)), unless the terms of a statute or delegation indicate that an action must be done by the Secretary of the Air Force (SECAF) or the Under Secretary of the Air Force (USECAF).

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XVII 5306.304(a)(3), and 5315.303(a)(i) - Revised to change PDASAF(A&M) references to ASAF(A).

Supplementary information about the change: None.

5306.304 Approval of the justification.

(a)(3) For PEO and DAC programs and acquisitions, the PEO or DAC is the J&A approval authority for J&As over $10M but not exceeding $50M. If a PEO, DAC, head of a procuring activity, or their designated alternate(s) does not meet the criteria of FAR 6.304(a)(3), the J&A approval authority for J&As over $10M but not exceeding $50M is the Assistant Secretary of the Air Force for Acquisition (ASAF(A)). This approval authority may be delegated to an individual who meets the FAR 6.304 (a)(3) criteria.

5315.303 Responsibilities.

(a) The SSA for source selections using Basic procedures is the contracting officer. The SSAs for PEO and DAC program source selections using Median or Agency procedures are as listed below. SSA shall not be delegated lower than the contracting officer. MAJCOMs and DRUs shall establish SSAs for "Other Contracting" source selections using Median and Agency procedures.

(i) For non-space related ACAT I programs, ASAF(A) is the SSA.

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XVIII 5302.101 - Revised to delete the references to DoDI 5000.2 in the definitions for Acquisition Category, Milestone Decision Authority, and Program Executive Officer.

Supplementary information about the change: None.

5302.101 Definitions.

"Acquisition Category (ACAT)" are the categories used to determine the Milestone Decision Authority for an acquisition program based on its location in the acquisition process, dollar value, and complexity.

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"Milestone Decision Authority (MDA)" means the individual designated in accordance with criteria established by USD(AT&L), or by ASD(C3I) for AIS acquisition programs, to approve entry of an acquisition program into the next phase of the acquisition process.

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"Program Executive Officer (PEO)" means an individual who has primary responsibility for directing assigned major/non-major system acquisition programs and major services acquisitions. The PEO reports to and receives guidance and direction from the Air Force Acquisition Executive.

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Supplementary information about the change: Note that 5307.104-91(b)(1) and (2) were also affected by Item IV above. The below text includes the changes identified by Item IV above.

5307.104 General procedures.

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(iv) Solicitation Release.

(A) For non-space related ACAT I programs, unless otherwise authorized by the MDA, the contracting officer shall not release the formal solicitation until the MDA has approved the acquisition strategy in accordance with USD(AT&L) guidance.

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5307.104-91 Air Force procedures for Single Acquisition Management Plans (SAMPs)/Integrated Program Summaries (IPSs).

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(b) Approval requirements.

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