IMMEDIATE ACTION

DEPARTMENT OF THE AIR FORCE AFMC ACQUISITION CIRCULAR 97-1

Headquarters AFMC

Wright-Patterson AFB OH 45433 27 August 1998

Air Force Material Command Acquisition Circular (AFMCAC)

1. All material in this AFMCAC is effective as of the date of the AFMCAC unless otherwise specified. Each item of this AFMCAC shall remain in effect until specifically cancelled or incorporated by a subsequent edition of the AFMCFARS.

2. This AFMCAC supersedes interim policy notices (IPNs) 97-4, 97-5, 98-1, 98-2, 98-3, 98-4 and 98-9. It also implements conforming changes to parts 5301, 5309, 5315, 5335, 5337, 5352, 5353, and Appendices AA & BB which are required due to the 1 Jan 98 implementation of the re-written FAR Part 15, and subsequent interim changes to AFFARS Part 5315. The changes implemented in IPN 97-4 are cancelled because they have been superseded by changes to part 5315 which are incorporated by this AFMCAC in ITEM 9. All other IPNs (98-5 through 98-8) implement non-AFMCFARS changes.

3. Expect future AFMCFARS changes to be made by AFMCAC (see ITEM 16 below.) Interim changes may also be implemented on an exception basis if approved by the AFMCFAR Council Chairperson.

4. AFMCAC 97-1 amends the AFMCFARS as specified below (all changes are marked by revision bars on the right hand side of the pages):

ITEM 1.

a. Title: AFMCFARS 5301.601-91(a)(90), 5301.601-94(b)(90), 5301.603-2(91), 5301.603-3(a)(90)(91), 5302.101, 5303.104-11-90(a), 5306.303-290(90), 5306.304-90(b), 5307.104-90(b)(1)(90), 5316.405-2(a)(91), 5319.201(c)(9)(90), 5332.703-1(1)(iii),

_______________________________________

No. of Printed Pages: 137

OPR: HQ AFMC/PKP (Kenneth J. Farr)

Distribution: F

HQ USAF/LG, Wash DC 20330-5000................4

SAF/AQCP, Wash DC 20330-5000................... 3

HQ USAF/JAC, Wash DC 20330-5000..............1

HQ AFIA/IM, Kirtland AFB NM 87117-5670.......1

AUL/LDEA, Maxwell AFB AL 36112-5564......... 1

5333.104-90(a)(2)(i)(A), 5337.9103, 5342.7101-90, IPN 97-05 (AFMCFAR Council case 97-15). Effective date: 1 Oct 97. (Pages: 1-4, 1-5, 1-6, 2-1, 3-1, 6-1, 7-2, 16-3, 19-1, 32-1, 33-1, 37-3, 42-2, and 49-1). Refer questions to HQ AFMC/PKT, DSN 787-8934.

b. Purpose/Explanation of Change(s): Implements changes required to reflect the new Air Force Research Laboratory organization. References to the old laboratory structure are removed or revised to reflect the new AFRL structure and to clarify contracting approval and authority flow for laboratory requirements. The AFRL/CC will exercise Center Commander equivalent authority. The AFRL/PK will serve as the Senior Center Contracting Official (SCCO) for the AFRL. Contracting officials one level below the SCCO will be Chiefs of the Contracting Offices (COCOs) for Other Contracting actions.

ITEM 2.

a. Title: AFMCFARS 5315.405(b)(1). Implemented in IPN 98-01 (AFMC FAR Council case 97-22). Elimination of reference to AFMC Pamphlet 64-102, Request for Proposal Process Guide, in AFMCFARS Part 5315 (page 15-1). Note that the Part 15 conforming changes (see Item 9) to AFMCFARS 5315.405-90(b) renumbered that section, "5315.201(c)(6)(90)" and renamed it "Exchanges with industry before receipt of proposals." Effective date: 7 Jan 98. Refer questions to Mr. Roger Hanson, DSN 787-6057.

b. Purpose/Explanation of Change(s): AFMCFARS 5315.405-90(b)(1) was deleted because it refers to AFMC Pamphlet 64-102, Request for Proposal Process Guide. The guide was cancelled because most of the information in it was duplicative of data already in DESKBOOK. The reference indicated that additional information on draft RFPs could be found in the RFP Guide. That information can now be found in DESKBOOK/AFAM. Any unique data which was in the guide has been moved to DESKBOOK.

ITEM 3.

a. Title: AFMCFARS 5347.305-6(91). Implemented in IPN 98-01 (AFMC FAR Council case 97-19), administrative change to Part 5347. Effective date: 7 Jan 98. (page 47-1)

b. Purpose/Explanation of Change(s): AFMCFARS 5347.305-6(91) was amended to correct a mistaken FAR reference. The cite incorrectly prescribes FAR 52.247-30, F.o.b. Origin, Contractor's Facility. The correct cite should be FAR 52.247-34, F.o.b. Destination. Refer questions concerning AFMC FAR Council case 97-019 to Mr. John Berg, DSN 787-6056.

ITEM 4.

a. Title: AFMCFARS 5301.90. Implemented in IPN 98-02 (AFMCFARS case 98-01). Contract Clearance Process (pages 1-6, 1-7). Effective date: 9 Jan 98. Refer questions to Ms. Rosanne Romanchek, DSN 986-0308.

b. Purpose/Explanation of Change(s): Implements changes to AFMCFARS 5301.90, Clearance Process. These changes result from the Clearance Process IPT recommendations and SAF/AQC Contracting Policy Memo 98-C-01.

ITEM 5.

a. Title: AFMCFARS 5352.235-9002. Implemented in IPN 98-03 (AFMC FAR Council Case 97-24) Definition of Unusually Hazardous Risks (page 52-66). Effective date: 15 Jan 98. Refer questions to Mr. Roger Porter, DSN 787-7421,

b. Purpose/Explanation of Change(s): AFMCFARS clause 5352.235-9002, Definition of Unusually Hazardous Risks, is changed to update the definition after a review and update of the previous definition by SAF/GC.

ITEM 6.

a. Title: AFMCFARS 5347.305-10. Implemented in IPN 98-03 (AFMC FAR Council case 97-23), Administrative changes to packaging, marking and consignment instructions (page 47-2). Effective date: 15 Jan 98. Refer questions to Mr. John Berg, DSN 787-6056.

b. Purpose/Explanation of Change(s): AFMCFARS 5347.305-10, Packaging, marking and consignment instructions, was amended to correct prescription statements which were not clear as to when to include specific packaging and marking clauses in solicitations, errors in an address, and other clarifications.

ITEM 7.

a. Title: AFMCFARS 5347.305-10, 5352.247-9016. Implemented in IPN 98-04 (AFMC FAR Council Case 98-02). Packaging, marking and consignment instructions (pages 47-3, 52-111). Effective date: 22 Jan 98. Refer questions to Mr. John Berg, DSN 787-6056.

b. Purpose/Explanation of change(s): Implements a change to AFMCFARS 5347.305-10, Packaging, marking and consignment instructions and deletes AFMCFARS clause 5352.247-9016, FMS Evidence of Shipment, because it duplicates coverage in AFFARS 5352.225-9000, Evidence of Shipment on Foreign Military Sales (FMS) Contracts.

ITEM 8.

a. Title: AFMCFARS 5346.7. Implemented in IPN 98-09 (FAR Council case 98-06). Warranties (pages 46-i, 46-4). Effective: 15 Apr 98.

b. Purpose/Explanation: Repeal of 10 U.S.C. 2403 followed a June 1996 General Accounting Office (GAO) Report (B-259383) which concluded the use of warranties in weapon system acquisitions is not practical and does not provide sufficient benefits to the Government. GAO estimated that the military services spend about $271 million annually for weapon system warranties with a return of only 5 cents per dollar. To implement this change at the DoD level, the Director of Defense Procurement issued Departmental Letter (D.L.) 98-002 on 6 Feb 98 removing the regulatory requirement for the mandatory purchase weapon system warranties found at DFARS 246.770. This letter will be formally implemented in DFARS Case 97-D326. With the repeal of 10 U.S.C. 2403 and issuance of D.L. 98-002, all AFFARS and AFMCFARS language pertaining to the mandatory use of weapon system warranties was also obsolete.

ITEM 9.

a. Title: Changes to AFMCFARS Parts 1, 9, 15, 35, 37, 52, 53, and Appendices AA & BB as a result of FAR Part 15 rewrite. Part 5315--Contracting by Negotiation, Appendix AA--Formal Source Selection for Major Acquisitions, and Appendix BB--Source Selection procedures for Other than Major Acquisitions, have been replaced in their entirety due to numerous changes. Effective date: upon approval of this AFMCAC. Clauses and provisions affected by the changes required by this item are dated August 1998. Optional use is authorized for 30 days after the effective date of this AFMCAC. The August 1998 versions are mandatory thereafter. This implements AFMC FAR Council Case 98-12. Refer questions to Mr. Don Poole, DSN 986-0359.

(pages: 1-5, 9-5, 15-i, 15-ii, 15-1 through 15-11, 35-1, 35-2, 37-1, 52-3, 52-4, 52-7, 52-18, 52-21 through 52-30, 52-32, 52-33, 52-35, 52-36, 52-49, 52-52, 52-80, 53-1, 53-2, AA-1 through AA-10, BB-1 through BB-20)

b. Purpose/Explanation of Change: The final rule reengineers the processes used to contract by negotiation, with the intent of reducing the resources necessary for source selection and reducing time to contract award. The goals of the rewrite were to ensure that the Government, when contracting by negotiation, receives the best value, while ensuring fair treatment to all offers. The changes made to the FAR drove numerous revisions to the DFARS, and AFFARS, and now to the AFMCFARS. The majority of the changes fall in one of the following categories:

- Consistency of terminology (e.g. BAFO changed to final proposal revision)

- Paragraph numbering consistency (e.g. Most of 5315.8 has been moved to 5315.4).

- Deletion of AFMC policy if now covered in another part of the FAR, DFARS or AFFARS (e.g. specifics of oral presentations now covered in FAR 15.102(d) and deleted for AFMCFAR Appendix AA-302(b)).

For information only. Concurrent with the release of this AFMCAC, we are posting the Price Negotiation Memorandum/Price Competition Guide to our HQ AFMCF/PKP WWW homepage. It is intended to provide certain guidance which was removed from AFMCFARS coverage due to the FAR Part 15 rewrite.

ITEM 10.

a. Title: AFMCFARS Appendix AA-116(90) (page AA-2). Streamlining. AFMC FAR Council case 98-012. Refer questions to Mr. Don Poole, DSN 986-0359.

b. Purpose/Explanation of Change: Clarification added concerning when use of EDI is appropriate in submission of proposals.

ITEM 11.

a. Title: AFMCFARS 5315.201(c)(6)(90) (page 15-1). Exchanges with industry before receipt of proposals. AFMC FAR Case 98-12. Refer questions to Mr. Don Poole, DSN 986-0359.

b. Purpose/Explanation of Change: Clarify a draft RFP is not required in a commercial acquisition using the combined synopsis/solicitation method.

ITEM 12.

a. Title: AFMCFARS 5353.290 (page 53-2), AFMC Forms. AFMC FAR Council Case 98-12. Refer questions to Mr. Don Poole, DSN 986-0359.

b. Purpose/Explanation of Change: Numerous AFMC forms deleted to allow centers flexibility in establishing local documentation.

ITEM 13.

a. Title: AFMCFARS Appendix BB-204 (page BB-3), Source Selection Plan (SSP). AFMC FAR Council Case 98-012. Refer questions to Mr. Don Poole, DSN 986-0359.

b. Purpose/Explanation of Change: Now allows discretion in tailoring SSP to specific acquisition.

ITEM 14.

a. Title: AFMCFARS Appendix BB-312 (page BB-7), Proposal Analysis Report (PAR) and presentation. AFMC FAR Council case 98-12. Refer questions to Mr. Don Poole, DSN 986-0359.

b. Purpose/Explanation of Change: Now allows discretion in tailoring PAR to specific acquisition.

ITEM 15.

a. AFMCFARS 5301.601-94 (page 1-4). AFMC FAR Council case 97-21. Refer questions to Ms. Rosanne Romanchek, DSN 986-0308.

b. Purpose/Explanation of Change: Conform AFMCFARS to AFFARS following SAF/AQC Contracting Policy Memo 98-C-11. AFFARS added a $5M threshold for IDIQ orders for PEO/DAC acquisitions. AFMCFARS recognizes the same legal review thresholds as ceilings for Other Contracting, so the language required a change to make the word "threshold" plural, "thresholds."

ITEM 16.

a. Administrative changes. AFMCFARS 5301.101, 5301.304(c) (pages 1-1 and 1-2). Refer questions to Mr. Kenneth Farr, DSN 986-0380.

b. Purpose/Explanation of Change: Administrative changes were made to this part to change the WWW address of AFMC guides and templates referenced in the AFMCFARS. This was necessary because the Web site was altered and the address changed since the AFMCFARS was rewritten in July 1997. Another change was made to reflect current procedures for changing the AFMCFARS. AFMCACs will be used to make all changes to the AFMCFARS unless the Chairperson of the AFMC FAR Council approves an interim change on an exception basis.

5. Filing instructions:

Page Insert changes:

Remove: Insert:

1-i, 1-ii 1-i, 1-ii

1-1 to 1-9 1-1 to 1-8

2-1, 2-2 2-1, 2-2

3-1, 3-2 3-1, 3-2

6-1, 6-2 6-1, 6-2

7-1, 7-2 7-1, 7-2

9-5, 9-6 9-5, 9-6

15-i, 15-ii 15-i, 15-ii

15-1 to 15-14 15-1 to 15-12

16-3, 16-4 16-3, 16-4

19-1, 19-2 19-1, 19-2

32-1, 32-2 32-1, 32-2

33-1, 33-2 33-1, 33-2

35-1, 35-2 35-1, 35-2

37-1 to 37-4 37-1 to 37-4

42-1, 42-2 42-1, 42-2

46-i, 46-ii 46-i, 46-ii

46-3, 46-4 46-3, 46-4

47-1 to 47-4 47-1 to 47-4

49-1, 49-2 49-1, 49-2

52-i to 52-iv 52-i to 52-iv

52-3, 52-4 52-3, 52-4

52-7, 52-8 52-7, 52-8

52-17, 52-18 52-17, 52-18

52-21 to 52-36 52-21 to 52-36

52-47 to 52-52 52-47 to 52-52

52-65, 52-66 52-65, 52-66

52-79, 52-80 52-79, 52-80

52-111, 52-112 52-111, 52-112

53-1 to 53-4 53-1, 53-2

AA-1 to AA-22 AA-1 to AA-10

BB-1 to BB-40 BB-1 to BB-20

PART 5301--FEDERAL ACQUISITION REGULATIONS SYSTEM

TABLE OF CONTENTS

SUBPART 5301.1--PURPOSE, AUTHORITY, ISSUANCE

SUBPART 5301.2--ADMINISTRATION

SUBPART 5301.3--AGENCY ACQUISITION REGULATIONS

SUBPART 5301.4--DEVIATIONS FROM THE FAR

SUBPART 5301.6--CAREER DEVELOPMENT, CONTRACTING

AUTHORITY, AND RESPONSIBILITIES

SUBPART 5301.90--CLEARANCE PROCESS

PART 5301--FEDERAL ACQUISITION REGULATIONS SYSTEM

SUBPART 5301.1--PURPOSE, AUTHORITY, ISSUANCE

5301.101 Purpose.

HQ AFMC guides and templates referred to in this supplement can be found in the PK Index at the following World Wide Web (WWW) address:

http://www.afmc.wpafb.af.mil/organizations/HQ-AFMC/PK/pkopr1.htm.

5301.104 Applicability.

Except as specifically provided by individual paragraphs, the AFMCFARS applies to all Air Force Materiel Command acquisitions of supplies and services.

SUBPART 5301.2--ADMINISTRATION

5301.201 Maintenance of the FAR.

5301.201-2 FAR Secretariat.

The Director of Contracting (HQ AFMC/PK) prepares and maintains the AFMCFARS.

5301.290 Designation of Office of Primary Responsibility (OPR).

The OPR for policy and actions on all matters related to the various parts of the FAR, DFARS, AFFARS, and this supplement can be found at the following WWW address: http://www.afmc.wpafb.af.mil/organizations/HQ-AFMC/PK/faroprs.htm. 

SUBPART 5301.3--AGENCY ACQUISITION REGULATIONS

5301.301 Policy.

The AFMC Commander issues the AFMCFARS under authority prescribed in AFFARS 5301.301.

5301.304 Agency control and compliance procedures.

5301.304-90 AFMCFARS revision procedures.

(a) HQ AFMC/PKP is the command focal point for coordination and revisions to the FAR and supplements.

(1) Use the AFMCFAR Council Process Guide available on the WWW to prepare cases for all proposed revisions to the FAR, DFARS, AFFARS, AFMCFARS, or HQ AFMC/PK publications and templates; and to obtain approval to use or revise provisions or clauses that fall under the definition of DFARS 201.304(1).

(2) Submit proposed FAR and FAR Supplement changes to the AFMCFAR Secretariat, HQ AFMC/PKP.

(3) For proposed provisions or clauses, provide a prescriptive statement that identifies the uniform contract format (UCF) location in the solicitation or contract where the proposed provision or clause should be included.

(b) Proposed revisions pending AFMCFARS council action shall be posted to the HQ AFMC/PKP AFMCFARS Secretariat WWW homepage for review. Center policy focal points shall ensure that organizations affected by the change have an opportunity to review and comment as necessary.

(c) Revisions to the AFMCFARS shall be accomplished by issuance of Air Force Materiel Command Acquisition Circulars (AFMCACs). Interim policy changes may be implemented on an exception basis if approval by the AFMC FAR Council Chairperson. Interim policy shall be superseded by the publication of AFMCACs. AFMCACs shall be numbered by using the fiscal year of the current AFMCFARS edition and shall be numbered sequentially.

(d) The Air Force Contracting Laboratory and other AFMC organizations responsible for updating command contract writing systems shall incorporate the changes resulting from IPNs and AFMCACs (changes other than those included in superseded IPNs) no later than thirty days after the effective date of the change.

5301.304-91 Use and approval of provisions/clauses not published in FAR Part 52.

(a) Provisions/clauses with significant effect as defined in DFARS 201.304(1) must be approved as specified therein. If there is doubt as to the effect on contractors, the provision/clause must be submitted for approval in accordance with DFARS 201.304(1).

(b) Approval requirements for deviations must follow the requirements of FAR 1.4 as supplemented.

(c) One-time-use provisions/clauses are not deviations and do not have significant effect.

(1) One-time-use provisions/clauses are not prescribed in the FAR or supplements for repetitive use nor, in fact, used repetitively. If one-time-use provisions/clauses are used repeatedly, they must be submitted for approval under the procedures for multiple-use language.

(2) The determination to use a one-time-use provision/clause shall be at the discretion of the contracting officer and requires a review for legal sufficiency prior to inclusion in solicitations or contracts.

(3) The contracting officer shall prepare and include in the file a justification supporting the determination that the subject provision/clause is appropriate for use, falls into the one-time-use category, does not have a significant effect and is not a deviation.

(4) The contracting officer shall provide a copy of the one-time-use provision/clause to the provision/clause control focal point referenced in 5301.304-92. Except for the instant acquisition requiring use of the one time provision/clause, these provisions/clauses shall not be available for use in local contract writing data bases.

(d) Multiple-use provisions and clauses are provisions/clauses that are published and prescribed in the FAR or supplements.

(e) There are two categories of solicitation/contract special language: contractor/program unique and implementation/administrative. This language is normally captured in contract writing data bases.

(1) Contractor/program unique language is written for use with a single contractor to address a specific, unique situation, or for use with more than one contractor to address a specific, unique situation peculiar to a program. An example would be a Corporate Administrative Contracting Officer (CACO) recommended clause for use in all contracts with a certain contractor pertaining to its pension plan.

(2) Implementation/administrative language is developed at the center level for use in solicitations and contracts in order to implement a FAR or FAR supplement requirement or to address a variety of administrative matters. An example would be standard center language for describing the ceiling price pursuant to the FAR 52.232-7 requirement to set forth a ceiling price in the contract.

5301.304-92 Center provision/clause control and compliance requirements.

The SCCO shall (a) ensure that a repository (database) is established for the retention of one-time-use provisions/clauses and special language and (b) ensure that a focal point for this repository is appointed. The focal point is responsible for ensuring that each one-time-use provision/clause and each instance of special language is controlled by title, date or origin, and local control number and for identifying one-time-use provisions/clauses which need to be processed for multiple-use.

SUBPART 5301.4--DEVIATIONS FROM THE FAR

5301.403 Individual deviations.

(90) Authority is redelegated to the SCCO, without power of further redelegation, to approve individual deviations from the FAR, DFARS, AFFARS, and this supplement for PEO and DAC Programs and Other Contracting.

(1) Obtain legal coordination on the deviation request prior to submittal to the SCCO for approval.

(2) All deviation packages requiring approval above the SCCO must be coordinated with the SCCO prior to submission.

(3) The SCCO shall submit a summary of individual deviations approved and disapproved to HQ AFMC/PK at the end of the fiscal year.

(91) Submit deviation requests for areas set forth in DFARS 201.402(1)(i) directly to SAF/AQCP.

5301.404 Class deviations.

(90) Submit requests for FAR, DFARS, and AFFARS class deviations directly to SAF/AQCP. Submit requests for AFMCFARS class deviations to HQ AFMC/PKA.

(1) Obtain legal coordination prior to submission to SAF/AQCP or HQ AFMC/PKA.

(2) All class deviation packages must be coordinated with the SCCO prior to submission.

SUBPART 5301.6--CAREER DEVELOPMENT, CONTRACTING AUTHORITY,

AND RESPONSIBILITIES

5301.601 General.

5301.601-91 Establishment of heads of contracting activities.

(a) The AFMC Commander, as HCA for Other Contracting, delegates all delegable responsibilities to the AFMC Director of Contracting. These authorities may also be exercised by the Deputy Director of Contracting.

(90) Center Commanders are authorized to act as designee of the HCA when regulation provides authority to the head of the contracting activity or designee. This authority may be redelegated only to the vice commander, executive director or SCCO.

5301.601-92 Delegation of general contracting authority.

(a) The AFMC Commander redelegates general contracting authority for Other Contracting to the AFMC Director of Contracting. This authority may also be exercised by the Deputy Director of Contracting.

(90) The AFMC Director of Contracting redelegates this authority to Center Commanders with power of further redelegation.

5301.601-94 Legal review.

(b)(90)  The SCCO and the cognizant legal office shall establish the legal review thresholds for Other Contracting. The thresholds may not exceed the limits established in AFFARS 5301.601-94(c) for PEO and DAC Programs.

(91) The following require legal review:

(i) All contracting documents that are expected to result in an obligation to the Government or a change in contract value equal to or exceeding the established legal review thresholds.

(ii) Any contracting document involving hazardous material, or the generation, storage, treatment or disposal of a hazardous waste.

(iii) Other documents specifically designated in other parts of the FAR, DFARS, AFFARS, or this supplement.

(92) AFFARS 5301.601-94(d) applies to Other Contracting funding documents.

(93) Use AFFARS 5301.9005-2, as supplemented, to determine the value of a contract action for application of the legal review threshold.

(94) If legal review indicates that a proposed course of action violates statute or regulation or is otherwise determined to lack legal sufficiency, the contracting officer shall attempt to resolve the matter with the attorney. If efforts to resolve legal concerns are unsuccessful, the contracting officer shall elevate the matter through management channels.

(95) If prior legal review has been obtained, and if other than administrative changes are made to the contract document during the contract execution process, resubmit for legal review.

(f)(90)  Obtain legal review of competitive contract actions before the request for clearance.

(91) Obtain legal review of noncompetitive contract actions before contract execution.

5301.602 Contracting officers.

5301.602-3 Ratification of unauthorized commitments.

(b)(3)(iii) Authority to ratify unauthorized commitments involving Other Contracting within AFMC is established as follows:

(A) Authority to ratify unauthorized commitments involving amounts of $2,500 or less is delegated to the COCO.

(B) Authority to ratify unauthorized commitments involving amounts of $25,000 or less is delegated to the SCCO.

(C) AFMC Center Commanders have the authority to ratify unauthorized commitments in excess of $25,000.

5301.603 Selection, appointment, and termination of appointment.

5301.603-2 Selection.

(90) Each field activity shall establish procedures and responsibilities for local review boards.

(91) Membership of field review boards shall be as determined by the SCCO. Board members must be of equal or higher grade than the grade of the person being considered for the warrant.

(92) The review board shall make recommendations to the appointing authority regarding each candidate and keep records of warrants issued.

5301.603-3  Appointment.

(a)(90) The SCCO is delegated the authority to appoint contracting officers.

(91) Individuals designated to perform contracting officer's duties under formal emergency plans, e.g., War and Mobilization Plan, Continuity of Operations for Air Force Materiel Command (COPAFMC), do not require an active contracting officer appointment. The SCCO shall establish procedures to appoint contracting officers on a conditional basis.

SUBPART 5301.90--CLEARANCE PROCESS

5301.9000 Scope and applicability.

(b) Except for sealed bidding actions, AFFARS 5301.90 as supplemented and Attachment 5301-90 apply to AFMC Other Contracting. Centers may prescribe review and approval requirements for sealed bidding actions in their contracting process books. Clearance authorities in Attachment 5301-90 may not be redelegated except as specifically indicated.

5301.9002 Definitions.

Clearance definitions for noncompetitive actions also apply to Architect-Engineer (A&E) services, Broad Agency Announcements (BAA), Program Research and Development Announcements (PRDA), Small Business Innovation Research (SBIR) and Small Business Technology Transfer Research (STTR) requirements, where the Government negotiates with competitively selected sources.

5301.9005 General requirements.

5301.9005-2 Determining the value of contract actions.

(d)(90) Use the individual contract value to determine the value of the contract action for clearance for awards resulting from A&E, BAA, PRDA, SBIR, and STTR solicitations.

5301.9006 Solicitation review.

(a) A&E services, BAAs, PRDAs, SBIR and STTR requirements do not require solicitation review.

5301.9007 Content of the RFC.

(b)(2)  The content of the RFC for noncompetitive acquisitions also applies to acquisitions to be negotiated with competitively selected sources, e.g., A&E services, BAAs.

(90) When HQ AFMC/PK is the CRA, send a retention file with the RFC containing copies of:

(1) The final solicitation (with amendments) unless it was reviewed by HQ AFMC/PKA prior to release;

(2) The preliminary PNM (for noncompetitive actions) or price competition memorandum for award without discussions;

(3) The final proposal revision request/determination supporting award without discussions, as applicable;

(4) The briefing charts, as applicable;

(5) The proposed contract or contract modification.

(91) Ensure that the RFC documentation (e.g., briefing charts, the RFC, or contract file) contains information on the availability of sufficient funds to cover the Government's anticipated present and contingent liabilities for the contract action under review.

5301.9008 Clearance procedures.

(c) Specific procedures for noncompetitive acquisitions apply to acquisitions to be negotiated with competitively selected sources, e.g., A&E services, BAAs.

ATTACHMENT 5301-90

REVIEW/APPROVAL AUTHORITIES

OTHER CONTRACTING

AUTHORITY LEVEL

NOTES:

(1) These authorities may be delegated down one level except that authorities for actions below $5M may be delegated down more than one level but no lower than the contracting officer.

(2) In formal source selection actions (AFFARS Appendix AA/Appendix BB), this is the individual designated as the source selection authority and responsible for the conduct of the entire source selection process. For other competitive actions, this is the individual responsible for selecting the source, e.g., the contracting officer.

(3) The Center/CC may delegate this authority.

(4) The SCCO may delegate these authorities to the COCO on a case-by-case basis.

(5) AFMC/PK may delegate these authorities to the SCCO on a case-by-case basis. AFMC/PK shall notify the center commander of such delegation.

PART 5302--DEFINITIONS OF WORDS AND TERMS

SUBPART 5302.1--DEFINITIONS

5302.101 Definitions.

"Chief of the Contracting Office (COCO)," as used in the FAR, DFARS, AFFARS, and this supplement, means the Buying Office Contracting Official (BOCO) for PEO/DAC contract actions. For Other Contracting, "COCO" means the first contracting official in the contracting chain subordinate to the Senior Center Contracting Official (SCCO).

"Laboratory Commander" (deleted)

PART 5303--IMPROPER BUSINESS PRACTICES AND PERSONAL

CONFLICTS OF INTEREST

SUBPART 5303.1--SAFEGUARDS

5303.104 Procurement integrity.

5303.104-5 Disclosure, protection, and marking of proprietary and source

selection information.

(c)(2)  The following persons are also authorized access to proprietary and source selection information, but only to the extent necessary to perform their official duties:

(90) Those persons within AFMC, required by FAR or any other Air Force or AFMC guidance, to generate, review, coordinate, approve, or take other action with respect to documents related to the acquisition;

(91) Cognizant contract administration office, Defense Contract Audit Agency and AFMC Inspector General personnel; and

(92) Duly appointed ombudsmen.

5303.104-11-90 Processing violations or possible violations.

(a) For Other Contracting actions, Center Commanders may redelegate the authority for reporting violations or possible violations in accordance with FAR 3.104-10 no lower than the SCCO. The Center Commander or designee shall establish procedures to review violations or possible violations reported by the contracting officer.

SUBPART 5303.8--LIMITATION ON THE PAYMENT OF FUNDS TO

INFLUENCE FEDERAL TRANSACTIONS

5303.804 Policy.

(b) Forward a copy of each disclosure submitted to the contracting officer in accordance with FAR 3.804(b) to SAF/AQCP. File the original copy of the disclosure in the official contract file.

PART 5306--COMPETITION REQUIREMENTS

SUBPART 5306.3--OTHER THAN FULL AND OPEN COMPETITION

5306.303 Justifications.

Refer to the J&A Guide and Template available on the WWW (See 5301.101). S&T acquisitions less than $500M may use the simplified S&T combined AP and J&A format pursuant to 5307.104-90.

5306.303-290 Justification review document.

(90) The Air Force Research Laboratory Commander shall coordinate on the JRD for S&T acquisitions which require SPE approval. When the simplified S&T AP and J&A format is used, the AP cover page shall serve as the JRD.

5306.304 Approval of the justification.

5306.304-90 AFMC approval of the justification.

(b) For Other Contracting actions over $10M but not exceeding $50M, the following listed designees (if a general officer or SES) are authorized to approve justifications. Additionally, redelegation to a general officer or SES is authorized in accordance with FAR 6.304(a)(3).

Center/CC or CV/CD

HQ AFMC/PK for AEDC

5306.304-93 Procedures for J&A changes.

(90) Follow the change procedures in the FAR and supplements for J&A changes of $50M or less, except that local format and approval levels apply.

(b)(90) Two or more requirements, when each had a separate J&A prepared and approved, may be combined into a single contract/contract action. If the cumulative dollar value for the combined acquisition exceeds the highest valued J&A's approving official's authority, the contracting officer shall submit copies of the previously approved J&As, with a cover letter requesting reapproval, to the appropriate higher approval authority. If the combined acquisition requires SPE approval, prepare one J&A and process in accordance with FAR 6.304 as supplemented.

PART 5307--ACQUISITION PLANNING

SUBPART 5307.1--ACQUISITION PLANS

5307.102 Policy.

(90) The acquisition strategy developed should reflect the results of the market research previously conducted with industry.

5307.103 Agency-head responsibilities.

(e)(90) Written APs for Other Contracting actions below SPE approval threshold are not required for the following:

(i) Recurring requirements for special programs covered by AF Sup 1 to DoDI 5000.2 for which a class J&A has been approved.

(ii) Replenishment parts except for those replenishment buys that involve design, development, verification testing, and approval before start of production.

(iii) Basic research under budget category 6.1.

5307.104 General procedures.

5307.104-90 Air Force procedures for acquisition plans.

(a)(90) Sharing AP/SAMP information can give interested parties greater insight into planned activities. If deemed in the Government's best interest and after approval by the acquisition plan approval authority, provide copies of APs/SAMPs to industry, appropriately redacted (FAR 3.104-5 and AFI 37-131, Freedom of Information Act Program) to remove negotiation/competition sensitive or For Official Use Only or classified information.

(b)(1)(90) See the following tables for AP review and approval thresholds for Other Contracting.

Acquisition Plan (AP) Review and Approval

Other Contracting (Non Information Technology)

Acquisition Plan (AP) Review and Approval

Other Contracting (Information Technology Not Integral to a Weapon System)

* S&T acquisitions less than $500M may use the simplified S&T combined AP and J&A format.

** $15/30M means $15M or more in any FY or $30M or more for all program years.

5307.104-91 Acquisition Strategy Panels (ASPs).

(a) Procedures for conducting ASPs are contained in AFMC Pamphlet 63-2, Acquisition Strategy Planning Process. Additional information on ASPs can be found at the following WWW address:

http://afmc.wpafb.af.mil/organizations/HQ-AFMC/PK/asp/index.htm

(b)(90) Procedures for convening ASPs are contained in AFMC Pamphlet 63-2. Whenever industry is invited to attend ASPs, whether in a competitive or noncompetitive environment, follow the policies and procedures set forth below.

(i) If deemed in the Government's best interest and after approval by the ASP chairperson, provide potential offerors (in both competitive and noncompetitive acquisitions) the opportunity to attend appropriate portions of the ASP process in order to obtain industry input on the Government's proposed acquisition strategy.

(91) Additional restrictions:

(1) Do not award contracts, delivery/task orders, purchase orders, or modifications for new procurements, except for orders under existing requirements contracts.

(2) Only issue solicitation documents to a contractor on the debarred or suspended list if specifically requested.

(3) Unless there is agency head approval in advance, take no action on a contractor's sole source or competitive new work proposal received before or after the date of contractor suspension or debarment. Handle these proposals as follows:

(i) There shall be no internal Government evaluation. Stop any evaluation/negotiation that has started.

(ii) Do not discuss or negotiate with the contractor.

(iii) Give written notice to the contractor that all proposals in hand will be held without any further action. If debarment or suspension is lifted before award, the proposal may be evaluated, and if appropriate, placed in the competitive range, and final proposal revisions.

(iv) If an adverse impact/nonsupport of Air Force requirements occurs because of stopping action on a contractor's proposal, notify the agency head and get approval to evaluate, negotiate (including requesting final proposal revision), and award the contract (DFARS 209.405).

5309.406 Debarment.

5309.406-3 Procedures.

(90) Each field activity shall appoint a person to control and process suspension and debarment reports and advise HQ AFMC/PKP.

SUBPART 5309.5--ORGANIZATIONAL AND CONSULTANT

CONFLICTS OF INTEREST (OCI)

5309.507 Solicitation provision and contract clause.

5309.507-90 AFMC solicitation provision and contract clause.

(a) In accordance with FAR 9.507-2, insert the clause 5352.209-9002, Organizational Conflict of Interest, substantially as written, in Section I when the contractor's eligibility for future prime contract or subcontract awards shall be restricted because of services being provided as stated in FAR 9.505-1 through -4.

(1) Insert the basic clause when the contractor will be providing systems engineering and/or technical direction. (See FAR 9.505-1.)

(2) Insert the clause with its Alternate I when the contractor will be preparing specifications or work statements. (See FAR 9.505-2.)

(3) Insert the clause with its Alternate II when the contractor will be providing technical evaluation or advisory and assistance services. (See FAR 9.505-3.)

(4) Insert the clause with its Alternate III when the contractor will be obtaining access to proprietary information. (See FAR 9.505-4.)

(5) Insert the clause with its Alternate IV when the contract is a task ordering contract and when more than one system is supported. The contracting officer may modify Alternate IV to include a list of systems for which task orders may be issued and indicate which organizational conflict of interest provision in paragraph (a)(2) shall apply.

(6) Insert the clause with its Alternate V when the contract provides for delivery orders. The contracting officer shall indicate in each delivery order which organizational conflict of interest provision in paragraph (a)(2) shall apply.

(7) Insert Alternate VI when it is necessary to have the restrictions of this clause included in all or some subcontracts, teaming arrangements, and other agreements calling for performance of work related to the contract.

(b) As prescribed in FAR 9.507-1, insert in Section L the provision at 5352.209-9003, Potential Organizational Conflict of Interest, substantially as written.

PART 5315--CONTRACTING BY NEGOTIATION

TABLE OF CONTENTS

SUBPART 5315.2--SOLICITATION AND RECEIPT OF

PROPOSALS AND INFORMATION

SUBPART 5315.3--SOURCE SELECTION

SUBPART 5315.4--CONTRACT PRICING

SUBPART 5315.6--UNSOLICITED PROPOSALS

SUBPART 5315.90--OMBUDSMAN PROGRAM

PART 5315--CONTRACTING BY NEGOTIATION

SUBPART 5315.2--SOLICITATION AND RECEIPT OF

PROPOSALS AND INFORMATION

5315.201 Exchanges with industry before receipt of proposals.

(c)(6)(90) Issue DRFPs for all competitive acquisitions when an AP or SAMP is required except that DRFP use is optional for BAAs, PRDAs, RDSS/Cs, and SBIRs. Consider using DRFPs when no AP or SAMP is required if the acquisition will benefit significantly from industry involvement. A DRFP is not required when a commercial acquisition using the combined synopsis/solicitation method is contemplated. Obtain approval from the SSA to waive DRFPs. Document the waiver in the AP or SAMP. If waived, the contracting officer shall consider allowing additional proposal preparation and submission time.

(91) Procedures.

(A) Solicit industry input on source selection evaluation factors and subfactors and evaluation standards. Include a Section M, Evaluation factors and subfactors for award; and source selection evaluation standards in all DRFPs for competitive acquisitions.

(B) See 5315.204-5(b)(90).

5315.204 Contract format.

5315.204-4 Part III--List of Documents, Exhibits, and Other Attachments.

(90) If relevant price history information is available, include it in Section J of competitive solicitations.

5315.204-5 Part IV--Representations and Instructions.

(b)(90) Program affordability and cost as an independent variable (CAIV) are critical program considerations in a budgetarily constrained environment. When deemed appropriate to the program's specific circumstances by the SSA, include program budget/funding information (if program budget is approved and unclassified) in Section L of all competitive solicitations. Also see 5332.791.

(c)(90) Include the evaluation standards in all solicitations for competitive acquisitions using Appendix AA or BB source selection procedures.

5315.209 Solicitation provisions and contract clauses.

5315.209-90 AFMC solicitation provisions and contract clauses.

(a) When using annual representations and certifications, the contracting officer may include the provision at 5352.215-9000, Representations and Certifications, in Section K of solicitations not using simplified acquisition procedures.

(b) The contracting officer shall insert the provision at 5352.214-9001, Award-All or None Basis, in Section M of solicitations when contract award shall be based on a proposal responding to all items included in the solicitation.

(c) The contracting officer shall insert the provision at 5352.215-9001, Engineering Data, in Section L of noncompetitive solicitations for spare parts when it is anticipated that the offeror might offer an alternate part instead of a part specified in the schedule. Use of the provision is optional for other noncompetitive solicitations for supplies. If the Government elects to accept the alternate part, insert the clause at 5352.215-9002, Replacement Items, in Section B.

(d) The contracting officer shall insert the provision at 5352.215-9003, Proposal Samples, substantially as written, in Section L if proposal samples, as discussed in FAR 14.202-4, are required.

(1) If it appears that the conditions in FAR 14.202-4(f)(1) and 14.201-6(o)(2)(i) will apply, the contracting officer shall use the provision with its Alternate I.

(2) If it appears that the conditions in FAR 14.202-4(f)(1) and 14.201-6(o)(2)(ii) will apply, the contracting officer shall use the provision with its Alternate II.

(e) The contracting officer shall insert the provision at 5352.215-9004, Evaluation of Proposals Submitted When Qualification Requirements Do Not Exist, substantially as written, in Section L for spares acquisitions when no prequalification requirements exist and it is necessary to inform potential offerors that the Government does not have complete and adequate data, special materials, facilities, tooling, or test equipment (e.g., AMSC code is other than "G") which may be required in the performance of the contract. Use Alternate I for repair and overhaul services.

(f) If it is determined to be in the Government's best interest to incorporate the contractor's technical proposal, the contracting officer shall insert the clause at 5352.215-9005, Incorporation of Contractor's Technical Proposal, in Section I. Paragraphs (c), (d), and (e) of the clause may be excluded for BAAs, PRDAs, RDSS/Cs, and SBIRs.

(g) Include the provision at 5352.215-9006, Intent to Incorporate Contractor's Technical Proposal, in Section L when the clause at 5352.215-9005, Incorporation of Contractor's Technical Proposal, is used.

(h) When contractor personnel (non-Government advisors) may assist in evaluating proposals, the contracting officer shall insert the provision at 5352.215-9007, Use Of Non-Government Advisors, in Section L.

(i) When the contract includes requirements for contractor personnel to assist in evaluating proposals or other contractor's products, the contracting officer shall insert the provision at 5352.209-9003, Potential Organizational Conflict Of Interest,

substantially as written, in Section L, and the clause at 5352.209-9002, Organizational Conflict Of Interest, substantially as written, in Section I.

(j) When a prime contractor must agree to cooperate with a service contractor, the contracting officer may insert the clause at 5352.215-9008, Enabling Clause Between Prime Contractors and Service Contractors, substantially as written, in Section I.

(k) When the contractor may be required to travel within the contiguous United States or overseas, the contracting officer may insert the clause at 5352.215-9009, Travel, substantially as written, in Section I.

(l) When formal training sessions and materials are to be ordered and the Government will furnish facilities and equipment, the contracting officer may insert the clause at 5352.215-9010, Training, substantially as written, in Section I.

SUBPART 5315.3-SOURCE SELECTION

5315.300 Scope of subpart.

AFMC policy and procedures for conducting source selections are prescribed in AFMCFARS Appendices AA and BB. Source selection procedures are prescribed in AFMCFARS Appendix BB for S&T, Part 5-90, and for LEP technique, Part 6-90.

5315.305 Proposal evaluation.

(90) When utilizing the Lowest Evaluated Price (LEP) technique contained in Section G of AFMCFARS Appendix BB, Part 6-90, insert the provision at 5352.215-9011, Lowest Evaluated Price Technique Technical Proposal Requirements, substantially as written, in Section L.

SUBPART 5315.4--CONTRACT PRICING

5315.403 Obtaining cost or pricing data.

5315.403-5 Instructions for submission of cost or pricing data or information other than cost or pricing data.

(90) If adequate price competition is anticipated but may not be realized and cost or pricing data would otherwise be required under FAR 15.403-4, contracting officers should include the provision at 5352.215-9014, Submission of Cost or Pricing Data, substantially as written, in Section L to reserve the right to request the cost or pricing data at a later date. In no case shall the time period be so short as to require the offeror(s) to unnecessarily prepare a cost proposal to have on hand in case adequate price competition does not occur.

5315.404 Proposal analysis.

5315.404-1 Proposal analysis techniques.

(b)(2)(ii) To utilize a previous price for comparison purposes, the previous price must have been determined reasonable based on adequate price competition, cost analysis, a catalog or market price or commercial price, or a General Services Administration schedule. A prior price which was determined reasonable solely by comparison to another prior price is not a valid comparison base unless additional price analysis is performed to ensure that it is still a valid basis for comparison. To make a valid comparison between the current buy and the historical price, review the historical contract file for differences in delivery schedule, quantity, etc.

5315.404-4 Profit.

(c)(2)(90) The BOCO or COCO may approve written requests for the use of an Alternate Structured Approach (ASA). This authority may not be redelegated.

5315.404-70 DD Form 1547, Record of Weighted Guidelines Method Application.

5315.404-70-90 AFMC policy and procedures for DD Form 1547, Record of Weighted Guidelines Method Application, RCS:DD-A&T(Q)1751.

(a) HQ AFMC/PKPC is the command focal point for weighted guidelines reporting. Each SCCO shall establish procedures for processing and reporting profit and fee data and shall appoint a profit monitor at each geographic location. The responsibilities of the profit monitor are:

(1) Act as liaison with HQ AFMC on all matters relating to reporting profit and fee data to the designated office of the DoD-wide management information system (DFARS 215.404-75).

(2) Establish and maintain a contract file review system to ensure that all reportable transactions, including priced options when exercised, are reported.

(3) Ensure timeliness of submitted report.

(b) When preparing a DD Form 1547, the contracting officer shall:

(1) For contract actions involving multiple contract types, prepare a separate DD Form 1547 for each contract type to determine suitable profit objectives for the different line items.

(2) For time-and-materials (T&M) contracts covering a single identifiable effort where a proposal has been obtained, prepare a DD Form 1547 reflecting the objective cost elements for that effort. If a T&M ordering contract is contemplated, and a cost proposal has been obtained for a firm initial order, prepare the DD Form 1547 based on the objective position value of that order. When a firm initial order is not known, or when negotiating rates for the contract instead of obtaining a proposal specific to an order, a hypothetical scenario incorporating the objective cost position may be used with DD Form 1547 to calculate a profit objective. After award of the T&M ordering contract, preparation of a DD Form 1547 for any subsequent order is not required unless a new profit analysis is performed in negotiating a price for such order. The cost reimbursable materials portion of T&M actions should be excluded from DD Form 1547 calculations.

(3) For modifications where the basic contract profit rate will not be used (see FAR 15.404-4(c)), prepare a DD Form 1547 reflecting only the value of new (added) work to price that portion of the change proposal. Deleted work may be priced using the basic contract rate, the rate computed for added work, or a separately computed rate, as considered appropriate by the contracting officer. DD Forms 1547 should not be prepared based on aggregate or net values of the modification.

(4) Exclude nonprofit-bearing costs (e.g., reimbursables, royalties, warranty costs, or state income taxes) from DD Form 1547 calculations.

(5) Prepare separate DD Forms 1547 for priced options concurrent with the DD Form 1547 prepared for the basic contract. However, the option DD Forms1547 shall be kept in the contract file and submitted in accordance with current submission requirements when each option is exercised.

(c) Contract type risk and working capital adjustment does not apply to undefinitized long lead contract actions.

(d) Facilities capital employed. If the contractor's investments resulted from Government funded programs, a below normal value should be assigned. This is because the purpose of rewarding a contractor in the facilities capital employed area is to recognize investments made by the contractor to reduce Government acquisition costs.

5315.404-74 Fee requirements for cost-plus-award-fee contracts.

(c) When compliance with the offset policy of DFARS 215.404-73(b)(2) results in a negative base fee, subtract an amount equal to the facilities cost of capital or one percent of the estimated cost of the contract (whichever is less) from the award fee pool and use a base fee of not less than zero. The contracting officer shall document this in the PNM and cite this paragraph as the authority.

5315.404-75-90 Reporting profit and fee statistics in AFMC.

(a) DD Form 1547s shall be prepared and reported using the current version of the profit weighted guidelines desktop computer software editor and J010 conversion programs.

(b) Where multiple contract types are involved (see 5315.404-70-90(b)(1)), report only the DD Form 1547 reflecting the largest dollar amount if that DD Form 1547 meets the reporting threshold. Otherwise, reporting is not required.

(c) Report T&M actions (see 5315.404-70-90(b)(2)) only if the value of the identifiable effort or known order reflected on the DD Form 1547 meets the reporting threshold.

(d) If a modification results in a net increase to the contract value that meets the reporting threshold, report the DD Form 1547 prepared for new (added) work only.

5315.406 Documentation.

5315.406-2 Certificate of Current Cost or Pricing Data.

(90) When a contractor submits additional cost or pricing data after the date of agreement on price, but before contract award, which is current as of the date of agreement on price, the contracting officer shall:

(1) require the contractor to provide a price impact summary which separately reflects price increase and price decrease impacts on the negotiated price;

(2) allow only a downward price adjustment or a net zero adjustment (when valid price increase offsets are present); and

(3) require that the "as of" date on the Certificate of Current Cost or Pricing Data be the date of agreement on price rather than the date the additional data was submitted.

5315.406-3 Documenting the negotiation.

(a)(90) The content of a PNM will vary according to the nature of the contractual action being discussed. Guidelines for writing the PNM can be found in the HQ AFMC Price Negotiation Memorandum/Price Competition Memorandum (PNM/PCM) Guide available on the WWW.

   (91) If a contractor submits additional cost or pricing data after the date of agreement on price, but before contract award, the contracting officer shall separately identify and discuss the data received after the date of agreement on price and any resulting price adjustments in the PNM. It should be made clear in the PNM that the Government specifically relied on the contractor's summary impact statement. The PNM should also discuss whether or not, and to what extent, the data was audited or reviewed.

5315.406-90 Specialized negotiation memoranda.

(a) For acquisitions at or below the threshold for simplified acquisition procedures, normally use AFMC Form 829, Price Negotiation Memorandum (Price Analysis), or AFMC Form 829A, Price Negotiation Memorandum (Cost Analysis Without Cost or Pricing Data), as the PNM. Generally, do not use AFMC Form 829 and 829A for acquisitions that are above the simplified acquisition threshold, however, the forms may

be used at the discretion of the contracting officer for noncomplex acquisitions. The PCO should use the AFMC PNM/PCM Guide to complete PNMs over the threshold for simplified acquisitions.

(b) For source selection pricing actions where adequate price competition does not exist, prepare a PNM compliant with FAR 15.406-3 as supplemented. If adequate price competition applies, prepare a PCM. The PCM shall address all applicable areas of Attachment B to the PCM Guide.

(c) In accordance with clearance procedures (AFFARS 5301.9007(b)(2)(ii)), noncompetitive actions require a preliminary and a final PNM. The preliminary PNM will essentially incorporate the proposed and objective positions for management approval to begin negotiations. The final PNM will include the preliminary PNM information either as an attachment or within its context, but both documents must be separately identifiable in the memorandum. The final PNM shall adequately document the proposed, the objective, and the considered negotiated position for all applicable areas of the AFMC PNM Checklist. When the briefing format is used for the preliminary PNM, it shall not be used or attached to the final PNM since it is not in narrative format as required to adequately document the acquisition.

5315.406-91 Postaward price negotiation memorandum review.

SCCO shall establish local procedures for postaward review of PNMs and PCMs. This review shall focus on the quality of the memorandums and the identification of training requirements.

5315.407 Special cost or pricing areas.

5315.407-1 Defective cost or pricing data.

(b)(7)(i)(90) Contracts or modifications entered into on or before 8 Nov 85 shall bear simple interest from the date due until paid unless paid within 30 days of becoming due in accordance with FAR 52.232-17, Interest. The interest shall be calculated using the appropriate Treasury rate(s).

   (91) Contracts or modifications entered into after 8 Nov 85 shall bear simple interest from the date of overpayment in accordance with Section 934 of the DoD Authorization Act of 1986 (Public Law 99-145) and Section 952 of Public Law 99-591. The interest shall be calculated using the appropriate Internal Revenue Code (26 U.S.C. Sec. 6621) "underpayment" rate(s) published quarterly in the IRS monthly bulletin, or see http://afmc.wpafb.af.mil/HQ-AFMC/PK/pkp/pkpc/rates/pkf-com.txt.".

(b)(7)(iv)(90) Modifications shall be tailored to the type of contract, status of completion, status of fund liquidation, etc. Modifications shall include as a minimum the full accounting classification code, unit price adjustments (if appropriate for the modification), and audit report numbers and dates (including supplements) that are settled as a result of the modification. Interest and/or

penalties should be identified separately from the amount defective and shall always be received by check. The contract price shall not be reduced by the amount of the interest. The contractor shall be informed that any checks submitted shall be made payable to the "Treasurer of the United States." The contracting officer may not limit the Government's right to receive an equitable adjustment for any matter not addressed in the audit or any civil, criminal, or other administrative actions.

(c)(90) Postaward audits with findings of defective pricing from DCAA, the GAO or the DoD/IG are subject to DoD Contract Audit Follow-up Policy as stipulated in DoDD 7640.2, Policy for Follow-up on Contract Audit Reports, AFFARS 5315.491-1(a) and 5315.491 of this supplement. Unique response time requirements and procedures for handling GAO and DoD/IG defective pricing audits are outlined in DoDD 7650.3, Follow-up on General Accounting Office, DoD Inspector General and Internal Audit Reporting, and AFFARS 5315.491-10.

(d)(90) Immediately upon receipt of a defective pricing audit, the contracting officer shall provide a copy to the contract audit follow-up focal point. The focal point shall log the audit report into the local tracking system.

(91) Audit report findings shall be submitted to the contractor for concurrence or comment. Give the contractor 30 days to respond to the audit. Grant reasonable extensions for good cause. To expedite disposition, advise the contractor to submit a copy of their response to the cognizant contract auditor.

(92) The contracting officer should obtain audit review of the contractors comment and any certified offsets. DCAA auditors shall not review an offset on contracts awarded after 14 Dec 87 until the contractor provides the Government with a certificate of entitlement as required by 10 U.S.C. 2306a. When the objective has been established and an independent review of the objective accomplished (as required by AFFARS 5315.491-6(b)), resolution has occurred. Communicate the resolution date and objective amount to the audit follow-up focal point immediately upon their occurrence.

(93)  Once the contracting officer has settled or has otherwise disposed of the defective pricing issues, the contracting officer prepares and distributes the negotiation memorandum to the auditor (DCAA, DoD/IG, or GAO), the audit follow-up focal point, and the administrative contracting officer. Provide a copy of the distributed contract modification to the contract audit follow-up focal point and the administrative contracting officer.

(90) Contracting officers shall:

(1) Ensure that defective pricing adjustments (excluding interest) are reflected in automated procurement history records for repetitive spares. Also, ensure that adjustments made to the record are made to all units, in each contract line item significantly impacted by the defective pricing.

(2) Inform the contract audit follow-up focal point of the receipt and current status, through disposition, of all defective pricing audits. This shall include specific notification of any changes to questioned cost agreed to by the auditor as a result of resolution and disposition.

(91) The SCCO shall consider designating a defective pricing advisor to provide counsel and training to the contracting officer on the processing, resolution and disposition of defective pricing cases, including review of resolution/disposition documentation, and the contract modification before they are finalized.

(92) No negotiated settlement agreement with a contractor shall waive the rights of the Government for future defective pricing claims or otherwise restrict the Government's rights to conduct audits under the same or other contracts. Goods and services shall not be accepted as settlement of a defective pricing case. No settlement agreement shall be made contingent upon the granting of a deferred payment agreement under FAR 32.613 or its supplements. Offsets of understated costs caused by incomplete or inaccurate cost or pricing data in the same proposal can only be applied to reduce defective pricing liability and not justify a net upward price adjustment or reopening of negotiations. The collection of interest on overpayments cannot be waived or offset. An offer to waive contractor claims on unrelated contracts shall not be accepted as consideration or as an offset against amounts due the Government for defective pricing on the instant contract.

5315.407-2 Make-or-buy programs.

(d)(2) Capacity shall include ability to support surge and mobilization needs identified by the contracting officer. Also address impact on critical and strategic materials, and critical forms and parts.

(d)(90) Insert the provision at 5352.215-9013, Make-or-Buy Program, substantially as written, in Section L when submission of a Make-or-Buy Program is required in accordance with FAR 15.407-2.

(f)(90) The contracting officer shall request administrative contracting officer comment on the prospective contractor's Make-or-Buy program.

5315.407-3 Forward pricing rate agreements. (90) When a FPRA has not been established, use the FPRRs to the maximum extent possible. Also, when using a rate other than an established FPRR, discuss the reason with the administrative contracting officer during fact-finding, but before clearance. Address reasons for not using an FPRR in both the clearance session and the PNM.

5315.407-4 Should-cost review.

(b)(2)(90) Each contract proposal over $100M that meets the criteria in FAR 15.407-4(b)(2), as supplemented, shall be reviewed to determine if a Should-Cost Analysis is appropriate. The SCCO determines when the review should be conducted to obtain significant savings on initial production contracts, contract options, or follow-on production contracts. The following factors should also be considered.

(A) There are known problems at the contractor's facility that may contribute to increased costs (example, excess manufacturing capability or history of quality or procurement system problems).

(B) There is a large volume of Government business in a contractor facility that could benefit from the implementation of should-cost recommendations.

(C) The SCCO or designee organizes and conducts the Should-Cost Review using AFPAM 64-112, Should-Cost Review Guide.

5315.490 Formula pricing agreements (FPAs).

5315.490-4 Responsibilities.

(a)(1) The SCCO is the approval level for FPAs.

     (2) The contracting officer is responsible for furnishing a copy of the approved FPA to HQ AFMC/PKP.

5315.491 Follow-up on contract audit reports.

5315.491-3 Responsibilities.

(b) The MAJCOM responsibilities designated in AFFARS 5315.491-3(b) are delegated to the SCCO. RCS:DD-IG(SA)1580, Policy for Follow-up on Contract Audit Reports, applies and shall be submitted through the PK Audit Reporting System.

(1) The Chief of Pricing, Finance and Specialized Policy Branch, HQ AFMC/PKPC, is the designated contract audit follow-up official responsible for managing the command's contract audit follow-up program.

5315.492 Reopener clauses.

(a) Insert in Section H a reopener (savings) clause only in unusual situations where a significant cost element or event cannot be reasonably estimated and mutually agreed upon.

(b) Consider the limited availability of expiring year funds to cover upward adjustments, along with the associated risks of a potential unfunded contingent liability and an Anti-Deficiency Act violation when drafting a reopener clause. Sufficient funds must be committed to cover the reasonably expected liability of any upward adjustable reopener clause.

(c) Ensure controls are established to track the contractor's compliance with the clause's definitization milestones and negotiate at the earliest opportunity.

SUBPART 5315.6-UNSOLICITED PROPOSALS

5315.606 Agency procedures.

5315.606-90 Air Force procedures.

(a) Procedures for receipt and disposition of unsolicited proposals are contained in AFMC Pamphlet 64-101, Unsolicited Proposal Guide, available on the WWW (http://afmc.wpafb.af.mil/HQ-AFMC/PK/pkopr1.htm#list21).

SUBPART 5315.90--OMBUDSMAN PROGRAM

5315.9000 Purpose and applicability.

The primary function of the Ombudsman is to hear concerns about specific issues in acquisitions and to communicate these concerns to senior management personnel for the particular acquisition. The Ombudsman must act in a manner that does not compromise the interested party. If requested, anonymity will be maintained. The Ombudsman shall not usurp normal procurement authority (e.g., program director, contracting officer, and source selection authority).

5315.9001 Procedures.

(a) The Center Commander shall appoint an experienced senior official(s) as the Ombudsman. The Ombudsman will have sufficient authority to call upon other resources of the activity to accomplish the mission.

(b) The Ombudsman shall:

(1) work with acquisition personnel to resolve issues raised by interested parties;

(2) report only to the DAC, Center Commander, or PEO; and

(3) inform the commander or PEO, as required, of issues raised and actions taken.

(c) Consistent with security requirements, the Ombudsman shall have access to the appropriate offices and be allowed to collect all relevant facts to resolve issues raised by interested parties. Ombudsmen are granted access to proprietary information. Source selection information must be obtained through the source selection authority (See AFFARS Appendix AA-403(b) and BB-403(b)).

(d) Identify the Ombudsman in the initial Commerce Business Daily (CBD) announcement of the acquisition (e.g., Requests for Information, solicitation, Sources Sought Synopses) by including a statement similar to the one prescribed at 5305.207(f)(90). Also, either include the same statement, substantially as written, in solicitation executive summary or cover letters or include the provision at 5352.215-9016, Acquisition Ombudsman, substantially as written, in Section L.

(v) List the evaluation periods by date or specific anticipated milestone completion date and the available award fee amount associated with each evaluation period. If milestones are used, evaluation periods shall end either at milestone completion or the anticipated milestone completion date, whichever occurs first. An evaluation period should not exceed six months for small businesses and one year for large businesses.

(vi) Describe the AFRB's general procedures (including use of interim evaluation results and contractor self-evaluations) for assessing the contractor's performance and providing a recommended earned award fee to the FDO.

(2) Include a copy of the award fee plan with the draft and the final Requests for Proposal.

(3) The award fee plan shall be approved by the FDO prior to the beginning of the first award fee evaluation period.

(4) After approval of any change to the award fee plan, the contracting officer shall notify the contractor in writing of any change(s). Unilateral changes may be made to the award fee plan if the contractor is provided written notification by the contracting officer before the start of the upcoming evaluation period. Changes affecting the current evaluation period must be by bilateral agreement.

(91) FDO. For PEO/DAC Programs, the PEO or DAC for the program is the FDO, unless otherwise appointed. The PEO/DAC-appointed FDO shall be a level no lower than the Single Manager. In addition, the DAC may appoint the vice commander or Executive Director to be the FDO. Redelegation by the PEO/DAC-appointed FDO below the level of Single Manager is not authorized. In the absence of the FDO, the person officially acting in the position of the PEO/DAC-appointed FDO may serve as the FDO. For Other Contracting actions, the center commander will be the FDO, unless otherwise appointed. Redelegation by the commander-appointed FDO is not authorized.

(1) The FDO appoints the chairperson of the AFRB. The AFRB chairperson selects the remaining members of the AFRB. Since the AFRB membership is identified in the award fee plan, the FDO approves the AFRB membership when the award fee plan is approved.

(2) All FDO decisions regarding award fee shall be communicated in a timely manner to the contractor through the contracting officer.

(3) Within 45 calendar days after the end of each evaluation period, the FDO shall give a written decision to the contractor that includes the award fee amount and an evaluation of the contractor's performance in terms of the evaluation criteria. Within 15 calendar days of the FDO's determination, the contracting officer shall authorize payment of any earned award fee.

(92) The award fee amount available for each specific award fee evaluation period is a contingent liability and shall be certified and administratively reserved prior to the beginning of the applicable award fee evaluation period. For incrementally funded contracts, reserve an award fee amount corresponding to the funded part of the effort. In addition, certify and administratively reserve funds for the balance of the contingent

liability for the total award fee evaluation period immediately upon the receipt of funding for the succeeding fiscal year.

(93) If the contract is terminated for the convenience of the Government after the start of an award fee evaluation period, the FDO shall determine the earned award fee amount using the normal award fee evaluation process. After termination for convenience, the remaining award fee amounts allocated to all subsequent award fee evaluation periods cannot be earned by the contractor and, therefore, shall not be paid.

(94) Do not use directed award fee flowdown contract clauses.

5316.406 Contract clauses.

(90) In accordance with FAR 16.406(e), insert the clause at 5352.216-9003, Award Fee, substantially as written, in Section I of solicitations and contracts.

SUBPART 5316.5--INDEFINITE-DELIVERY CONTRACTS

5316.505 Ordering.

(a)(90) The contracting officer shall ensure cost estimates are prepared and included in the contract file prior to requesting the contractor's proposal for a task order. Prior to order placement, ensure documentation is obtained and included in the contract file to document review and technical evaluation of contractor's proposal.

5316.506 Solicitation provisions and contract clauses.

(90) Insert the clause at 5352.216-9004, Authority to Issue Orders, substantially as written, in Section I when an Indefinite-Delivery contract with decentralized ordering is contemplated.

SUBPART 5316.7--AGREEMENTS

5316.703 Basic ordering agreements.

5316.703-90 Contract clauses.

In addition to the situation-unique clauses required for the type of BOA contemplated, e.g., fixed-price, cost, overhaul, and programmed depot maintenance, the contracting officer shall insert the following clauses, substantially as written, in the BOAs as appropriate:

(a) 5352.216-9004, Authority to Issue Orders.

(b) 5352.216-9005, Procedures for Issuing Orders.

(c) 5352.216-9006, Procedures for Pricing Unpriced Orders.

(d) 5352.216-9007, Obligations of Contractor Under Unpriced Orders.

(e) 5352.216-9008, Term of Agreement.

PART 5319--SMALL BUSINESS PROGRAMS

SUBPART 5319.2--POLICIES

5319.201 General policy.

(c)(9)(90) For special access programs, the contracting officer shall complete DD Form 2579, Small Business Coordination Record, RCS: DD-A&T (AR)1862. The COCO shall review and coordinate on the DD Form 2579 in those instances where the Small Business Specialist and the SBA/PCR are precluded from the review process due to security classification. Disagreements on the suitability of special access program requirements for small business shall be elevated to the SCCO for resolution.

(91) An AFMC Form 34, Source List, may be used for competitive procurements in excess of $10,000. The contracting officer may also use a copy of the form to furnish award information to the Small Business Office. The original of the form, if used, shall be included in the contract file.

SUBPART 5319.7--SUBCONTRACTING WITH SMALL BUSINESS,

SMALL DISADVANTAGED BUSINESS AND WOMEN-OWNED

SMALL BUSINESS CONCERNS

5319.705 Responsibilities of the contracting officer under the subcontracting

assistance program.

5319.705-5 Awards involving subcontracting plans.

(a) The contracting officer shall insert the clause at 5352.219-9000, Incorporation of Subcontracting Plan, substantially as written, in Section I when the requirements of FAR 19.702(a)(1) and (2) apply.

(b) The contracting officer shall insert the clause at 5352.219-9001, Submission of Subcontracting Plan, substantially as written, in Section I of letter contracts and similar instruments.

(90) To incorporate comprehensive subcontracting plans, the contracting officer shall insert the clause at 5352.219-9002, Small, Small Disadvantaged and Women-owned Small Business Subcontracting Plan (Test Program), substantially as written, in Section I when the requirements of DFARS 219.708(b)(1)(B) apply.

PART 5332--CONTRACT FINANCING

SUBPART 5332.7--CONTRACT FUNDING

5332.702 Policy.

5332.702-90 Policy for funding contracting actions (other than Operational Contracting - see AFFARS 5332.790).

Satisfy one of the conditions in (a) through (e) below before issuing a solicitation. Insert the provision 5352.232-9000, Notice of Funding Status, in Section L when applicable.

(a) Funds have been certified as being available.

(b) Funds shall be obligated by delivery orders and not by a contract resulting from the solicitation.

(c) The solicitation is for an incrementally funded R&D or O&M contract before assurance of funds availability and the initiating and approving authorities determine that the requirement will probably not be cancelled.

(d) The solicitation is for an FMS requirement and issued in advance of a firm and funded requirement, including Letter of Acceptance.

(e) In exceptional situations, prior to program approval or formal funding of the requirement, the System Program Director (for PEO/DAC programs) shall provide written approval prior to solicitation release. For Other Contracting, the Center Commander, with the authority to redelegate, shall provide written approval prior to solicitation release.

5332.703 Contract funding requirements.

5332.703-1 General

(1)(iii) The authority to approve the use of incremental funding for fixed-price base service or hazardous/toxic waste remediation contracts is delegated to the SCCO.

5332.703-90 Committing funds and processing purchase requests (PRs and MIPRs).

Funding procedures are found in AFR 177-120, Central Procurement Transactions, and AFI 65-601, Volume I, Budget Guidance and Procedures.

5332.705 Contract clauses.

5332.705-2 Clauses for limitation of cost or funds.

(c) Insert the clause at 5352.232-9001, Implementation of Limitation of Funds, in Section B of all incrementally funded cost-reimbursement solicitations and contracts to implement paragraph (b) of FAR 52.232-22, Limitation of Funds.

5332.790 Base contract funding.

(90) A purchase request for minor construction, repair, or maintenance of real property (facility projects) shall be supported by a statement that sufficient funds are held in reserve by the using activity major command, and that such funds shall be made available when the amount of the low acceptable bid or proposal is identified. The statement is made by the Base Civil Engineer and Base Finance Officer on the AF Form 9, Request for Purchase, that funds shall be available.

5332.791 Rough Order of Magnitude (ROM) estimate profile provision.

(a) The contracting officer may insert the provision at 5352.232-9002, Rough Order of Magnitude (ROM) Estimate Profile, substantially as written, in Section L to provide offerors program funding estimates for their consideration in proposal development. Do not use this provision if funding considerations are otherwise addressed in the solicitation as a basis for award.

(b) Ensure the funding information provided does not exceed 6 years consistent with the current Future Years Defense Program (FYDP) since this provision is mainly intended for large multiple-year systems acquisitions. The provision includes a total ROM dollar amount as well as ROMs and corresponding percentage amounts by fiscal year.

(c) Cite the total ROM amount whenever the provision is included in the RFP; however, only use the ROMs by fiscal year if the contract is anticipated to be incrementally funded. The program manager is responsible for providing the ROM numbers to the contracting officer.

(d) Ensure any changes to funding information during the RFP/award process are conveyed to all offerors and, if appropriate, the offerors have an opportunity to update their proposals.

PART 5333--PROTESTS, DISPUTES, AND APPEALS

SUBPART 5333.1--PROTESTS

5333.103-90 Protests to the agency.

(b) The authority to deny protests lodged at or below the center level is redelegated to Center Commanders with authority to redelegate.

5333.104-90 Protests to GAO.

(a)(1)(90) Protest points of contact.

(A) HQ AFMC/PKP is the Command protest office of primary responsibility for maintaining GAO protest data.

(B) Each AFMC contracting activity shall establish a protest point of contact to receive notifications of new protests and to maintain internal data on all GAO protests received.

(a)(2)(i)(A) The SCCO or designee shall review all GAO protest agency reports and sign the transmittal letter incorporating the recommendation on adjudication of the protest. Forward two copies of the contracting officer's statement of facts and the memorandum of law to the HQ AFMC/PKP protest point of contact. When the GAO sustains a protest or when the center takes corrective action to resolve a protest, the SCCO shall notify HQ AFMC/PKP of the protest issue and corrective action.

(b)(1)(A) For Other Contracting, submit the request to HQ AFMC/PKP 14 days before the required award date. The request package shall include a complete, unsigned D&F. See AFFARS 5333.104-90 (b)(1)(B) for the details of the request. Refer to the AFMC Protest to the GAO Determination and Findings Template available on the WWW (See 5301.101).

(c)(2)  Submit Other Contracting requests to HQ AFMC/PKP. The request shall include a complete, fully supported, unsigned D&F. Refer to the AFMC Protest to the GAO Determination and Findings Template on the WWW (See 5301.101).

5333.190 Court of Federal Claims protests.

The cognizant legal office shall immediately notify HQ AFMC/JAQ if a protest is filed with the U.S. Court of Federal Claims or Federal District Court.

PART 5335--RESEARCH AND DEVELOPMENT CONTRACTING

5335.006 Contracting methods and contract type.

(90) The contracting officer may insert the clause at 5352.235-9000, Small Business Innovation Research (SBIR) Phase I and Phase II Contract Requirements, substantially as written, in Section I of contracts awarded for SBIR Phase I or Phase II, based on the SBIR solicitation published by the DoD.

5335.007 Solicitations.

5335.007-90 Clause.

The contracting officer may insert the clause at 5352.235-9001, Key Positions and Minimum Qualifications, substantially as written, in Section I when the decision to contract is based to a large extent on the qualifications of the principal investigator and/or the key members of the research team.

5335.016 Broad agency announcements.

5335.016-90 Procedures.

(a) BAAs may include the Government funding estimate, level of effort estimate, or contemplated performance period.

(b) Prepare BAAs in synopsis format in accordance with FAR 5.207(b), (d), and (f), and include the following statement in the announcement: "Offerors must mark their proposals with the restrictive language stated in FAR 15.609(a)."

(c) Before a BAA is published:

(1) The requiring activity shall provide documents required in FAR 35.016(b)

(1-3) and

(2) The contracting officer must document the file that a BAA is appropriate for the requirement.

(d) Upon receipt of proposals:

(1) Competitively evaluate unsolicited proposals that fall within the scope of an open announcement.

(2) Classify proposals into one of the following three categories:

(i) Category I: Well conceived, scientifically and technically sound proposals pertinent to program goals and objectives, and offered by a responsible contractor with the competent scientific and technical staff and supporting resources needed to ensure satisfactory program results. Proposals in Category I are recommended for acceptance and normally are displaced only by other Category I proposals.

(ii) Category II: Scientifically or technically sound proposals requiring further development and are recommended for acceptance, but are at a lower priority than Category I.

(iii) Category III: Proposals not technically sound or do not meet agency needs. (e) After evaluation of the proposals:

(1) Requiring activities shall forward to the contracting officer:

(i) The results of the technical evaluation and the proposal(s) selected for funding;

(ii) A description of changes desired in any proposer's statement of work, including the basis for the change;

(iii) Data requirements identified on DD Form 1423, Contract Data Requirements List. This form is not required for delivery of a technical report.

(iv) A purchase request for each proposal selected for funding; and

(v) A copy of each proposal and supplementary material received in response to the announcement.

(2) The contracting officer shall:

(i) For proposals selected for funding:

(A) Advise offerors of contract type, estimated award date, level of effort, and delivery schedule;

(B) If needed, send offerors a model contract (include modifications contemplated in the offerors statement of work) requesting agreement or identification of any exceptions;

(C) Request offerors provide supporting cost data for DD Forms 1423, if used.

(D) Obtain completed certifications and representations and SF 33, Solicitation, Offer, and Award, or equivalent;

(E) Complete proposal evaluations and negotiations. Do not make competitive range determinations and do not request final proposal revisions;

(F) Award contracts in accordance with FAR 15.504.

(ii) For technically acceptable proposals not selected for funding, and technically unacceptable proposals:

(A) When requested, provide debriefings according to FAR 15.505 and 15.506;

(B) Advise offerors that a copy of each final report from any resultant contract(s) is available, subject to national disclosure policy and regulations;

(C) Send notices of nonselection to offerors whose proposals were not selected for funding.

(f) Announcements by the Defense Advanced Research Projects Agency (DARPA) and other DoD agencies. AFMC contracting activities acting as contracting agents for DoD agencies shall proceed with awards for competitively selected proposals received in response to the announcements when the:

(1) Agency provides the contracting activity with a copy of the announcement, including all publications incorporated by reference, and documentation required in 5335.016(c)(1) and (f)(1);

(2) Announcement satisfies the definition of a BAA as described in FAR 35.016(a), and the requirements of FAR 35.016(a) and 35.016(b) as supplemented;

(3) Technical evaluation process is shown to be equivalent to 5335.016(90)(d).

(g) Code DD Form 350, Block C3 "A--Competed Action" for all BAAs.

PART 5337--SERVICE CONTRACTING

SUBPART 5337.1--SERVICE CONTRACTS - GENERAL

5337.110 Solicitation provisions and contract clauses.

5337.110-90 AFMC solicitation provisions and contract clauses.

(a) When a contract calls for delivery of services and payment based on required employee qualifications, the contracting officer may insert the clause at 5352.237-9000, Employee Qualification, substantially as written, in Section I.

(b) When the contractor will be performing services on a Government installation, the contracting officer shall insert the clause at 5352.237-9001, Contractor Identification, substantially as written, in Section I. See AFFARS 5342.490-1 for additional contractor identification requirements.

(c) When contract holidays are not established in the SOW or Statement of Objectives, the contracting officer shall insert the clause at 5352.237-9002, Contract Holidays, substantially as written, in Section G to establish which holidays are to be observed under the contract. Normally, the ten federal Government holidays are observed in the United States. Some contractor personnel policies and labor agreements provide for observing different holidays than observed by the Government. Services performed outside the United States usually observe the holidays of the country where the services are performed. Set forth in paragraph (b) of the clause is a list of the holidays contractually agreed to with the contractor.

(d) When contractor personnel (non-Government advisors) may assist in evaluating proposals, see 5315.209-90(h).

(e) When the contract includes requirements for contractor personnel to assist in evaluating proposals or other contractor's products, see 5315.209-90(i).

(f) When a prime contractor must agree to cooperate with a service contractor, see 5315.209-90(j).

(g) When the contractor may be required to travel within the contiguous United States or overseas, see 5315.209-90(k).

(h) When formal training sessions and materials are to be ordered and the Government will furnish facilities and equipment, see 5315.209-90(l).

SUBPART 5337.91--SURVEILLANCE

5337.9100 Scope of subpart.

(a) This subpart prescribes policies and responsibilities for surveillance of service contracts where the place of performance for the effort is the center or laboratory where the contract is awarded or other Government installation. It applies when:

(1) The anticipated contract value is estimated to exceed the simplified acquisition threshold set forth in FAR Part 13;

(2) A task order is issued against a contract with an anticipated or aggregate value estimated to exceed the simplified acquisition threshold; or

(3) Service contract line items contained in a nonservice contract are estimated to exceed the simplified acquisition threshold.

(b) This subpart does not apply to:

(1) Service contracts awarded to Federally Funded Research and Development Centers (FFRDCs) covered by AFMC Instruction 64-103, "Administration of Contracts Awarded to FFRDCs;"

(2) Service contracts for private sector contractors performing Commercial Activities (CA) as defined in OMB Circular A-76, "Performance of Commercial Activities;"

(3) Service contracts for Contractor Engineering and Technical Services (CETS) contracts covered by Air Force Instruction 21-110, "Engineering and Technical Services;" or

(4) Service contracts for Base Operating Support (BOS) or other base-level service contracts or portions of those contracts covered by AFM 64-108, "Service Contracts."

(c) Refer to AFMC "Services Contracting" for training materials and sample documents available on the WWW (See 5301.101).

5337.9101 Definitions.

"Functional Area Chief (FAC)" is the Government representative responsible for a functional area in which the services are provided. Depending on the activity and type of service required, the FAC is usually the program manager, technical director, test facility manager, or equivalent.

"Functional Area Evaluator (FAE)" is the Government representative, appointed by the FAC, responsible for monitoring, evaluating, and reporting contractor performance. FAES are assigned for specific contract areas (e.g., task, subtask, or any grouping of these), entire contracts, or multiple contracts.

"FAE Training Record" is the documentation of training received to perform the FAE function. This record is maintained in the surveillance folder.

"Joint Functional Team (JFT)" is the Government team responsible for surveillance of service contracts. Team members include the Contracting Officer, FAC, FAE, and Program Manager.

"Surveillance Folder" is a file containing the FAE appointment letter, letter of designation, FAE training record, pertinent parts of the contract, surveillance plan and surveillance log. The surveillance folder is maintained by the FAE.

"Surveillance Log" is a checklist tailored by the FAE to document the results of the contractor's performance in accordance with the contract requirements. The surveillance logs are part of the surveillance folder. They are completed periodically during contract performance and are submitted to the contracting officer for review as prescribed by the surveillance plan.

"Surveillance Plan" is a document developed by the FAE, working with the FAC and the contracting officer, for monitoring, evaluating, and reporting a contractor's performance.

5337.9102 Policy.

(a) Only those FAR Part 42 responsibilities necessary to accomplish surveillance of the contractor's physical work activity (and if necessary, On-Site Property Administration) shall be retained by the procuring activity when place of performance for the effort is at the center or laboratory where the contract is awarded or other Government installation.

(b) Service contracts shall utilize a surveillance plan, a comparable award fee plan, or a combination of the two.

(c) Use of an award fee plan in lieu of a surveillance plan may be approved by the COCO on a case-by-case basis. The award fee plan must provide for comparable oversight and measurement of a contractor's activities as that provided by a surveillance plan. If the award fee plan does not evaluate performance areas that should be observed under a surveillance plan, create a limited surveillance plan to cover those particular areas.

5337.9103 Management responsibility.

The SCCO shall ensure the accomplishment of effective surveillance of service contracts. The SCCO shall ensure:

(a) Training is provided and documented for each JFT member. Centralized JFT training, coordinated by a center or lab service contracts training focal point, is encouraged.

(b) A review process is established to make certain all orders and modifications are within scope.

(c) The contracting officer has full visibility for tracking of orders and funds expenditures.

(d) Periodic management reviews of service contracts are established to verify that the surveillance process is working properly.

5337.9104 Contracting officer responsibility.

The contracting officer shall:

(a) Review proposed contract actions to ensure contractor performance is measurable and appropriate surveillance can be accomplished.

(b) Ensure surveillance plans are consistent with contract requirements, approve the plan no later than 15 days after contract award, and ensure that a copy of the plan is retained in the contract file.

(c) Sign and transmit a letter of designation to each FAE and provide a copy of each letter to the contractor.

(d) Establish procedures with the FAE for review and submittal of contractor vouchers (invoices). These procedures shall include verification that the services have been satisfactorily performed in accordance with the contract. Accomplish verification before authorizing payment to the contractor.

(e) When applicable, establish procedures and JFT responsibilities to:

(1) Maintain a current roster of contractor personnel assigned to the contract and

(2) Verify qualifications of contractor personnel assigned to the contract and to each task order. (See 5337.110-90(a) which prescribes a clause to require submission of employee resumes.)

5337.9105 FAC responsibility.

The FAC shall:

(a) Ensure qualified personnel are appointed and trained as FAEs.

(b) Submit FAE appointments with the requirements package to the contracting officer. Whenever possible, before a FAE change becomes necessary, notify the contracting officer that a replacement is required. If organizational staff is available, appoint an alternative FAE to facilitate noninterruption of surveillance duties.

(c) Review and coordinate on the initial surveillance plan and subsequent modifications.

5337.9106 FAE responsibility.

The FAE shall:

(a) Be familiar with contract terms, conditions, and governing specifications. Request additional training, if needed, from the contracting officer and FAC.

(b) Develop a surveillance plan for all appropriate parts of the assigned contract. Develop the plan concurrently with the Statement of Work or Statement of Objectives to ensure uniformity of contract requirements and oversight. Include applicable requirements of FAR Subpart 42.11, "Production Surveillance and Reporting." Tailor the plan so that review activities are commensurate with the level of detail needed to monitor the contract (including subsequent task orders). Ensure the initial surveillance plan and any modifications necessitated by individual task orders are reviewed and coordinated by the FAC and approved by the contracting officer.

(c) Monitor the contractor's performance according to the surveillance plan, evaluate the contractor's performance and enter the results into the surveillance log, including details of deficiencies cited.

(d) Maintain a complete surveillance folder.

(e) Bring significant problems promptly to the attention of the FAC and the contracting officer.

(f) Submit surveillance logs to the FAC and the contracting officer for review as prescribed by the surveillance plan.

(g) Implement procedures established with the contracting officer to review vouchers (invoices) and verify satisfactory contractor performance before they are submitted for payment.

PART 5342--CONTRACT ADMINISTRATION

SUBPART 5342.2--ASSIGNMENT OF

CONTRACT ADMINISTRATION

5342.202 Assignment of contract administration.

(a)(90) The contracting officer shall delegate contract administration functions to the maximum extent.

(b)(2)(90) The COCO shall approve any withholding of normal functions listed in FAR 42.302(a).

5342.205 Designation of the paying office.

(90) The designated paying office for all contracts not assigned to DCMC for administration shall be the accounting office responsible for the funds on the contract or the accounting office designated in an Advance Payment Pool Agreement. In the event of multiple fund sources, the accounting office responsible for the largest amount of funds on the contract is the designated paying office.

SUBPART 5342.71--VOLUNTARY REFUNDS

5342.7100 General.

5342.7100-90 Procedures.

(a) The SCCO shall:

(1) Establish procedures for the initiation and processing of voluntary refunds, including price monitoring.

(2) Identify a focal point at each geographic location for voluntary refund processing. Provide the focal point's name, organization symbol, and the address to HQ AFMC/PKP. The voluntary refund focal point shall:

(i) Maintain established procedures.

(ii) Interface with local Air Force Zero Overpricing program officials.

(iii) Act as liaison between the center and HQ AFMC/PKP on voluntary refund issues.

(iv) Investigate, negotiate, and close voluntary refund referrals.

(v) Assist contracting officers in accepting voluntary refund payments and modifying contracts.

(b) Requests for voluntary refunds should generally be limited to recovery of overcharges on noncompetitive contracts when a contractual remedy is not readily available to recover the overcharges.

(1) A contractual remedy is considered to be readily available when a contract suspected of being overcharged is being audited for defective pricing, or has been

reported to be defectively priced, or when a contract is under investigation by a Government agency.

(2) When a contractual remedy to recover overcharges is not readily available, and the subject contract includes the clause at 52.215-22, Price Reduction for Defective Cost or Pricing Data, normally defer action to verify whether defective pricing exists until after a voluntary refund case has been completed and closed.

5342.7101 Solicited refunds.

5342.7101-90 Procedures applicable to other than spare parts.

To obtain HCA approval to solicit a refund on other than a spare parts contract, the SCCO shall forward a detailed statement justifying the refund action and a proposed letter to the president or principal officer of the contractor, as prescribed in AFFARS 5342.7101-90(b) and (d), to HQ AFMC/PKP.

5342.7101-91 Procedures applicable to spare parts.

The AFMC Commander delegates the authority to solicit voluntary refunds to Center Commanders without authority to redelegate.

PART 5346--QUALITY ASSURANCE

TABLE OF CONTENTS

SUBPART 5346.3--CONTRACT CLAUSES

SUBPART 5346.4--GOVERNMENT CONTRACT QUALITY ASSURANCE

SUBPART 5346.7--WARRANTIES

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(ii) If the contractor notifies the Government that changes are required and the Government decides it is not in its best interest to make those changes, negotiate adequate consideration for the associated reduction in work and modify the contract accordingly.

(5) In addition to the specific information required above, include in official contract documentation:

(i) An amount the Government shall withhold from the payment of the contract price of the items until all work is completed;

(ii) The right to negotiate an adequate credit for work not performed if the Government later relieves the contractor of the obligation; and

(iii) Whether the contractor or the Government shall bear additional transportation costs.

(6) When determining an adequate dollar amount to be withheld for conditionally accepting nonconforming material or material for which conformance has not yet been determined, consider the following, as appropriate:

(i) Cost to the contractor to perform the remaining work necessary to correct the noted deficiencies;

(ii) Loss of value to the Government due to reduced item reliability, increased life cycle cost, or reduced availability;

(iii) Consideration for extending delivery schedules; and

(iv) Any other factors which may impact Government use or cost of ownership of the affected items.

(7) Maintain records of all delivered items which require (or may require) retrofit.

(92) Before accepting services which do not conform to contract requirements the contracting officer shall make a written determination that it is in the best interest of the Government to do so. If the contract is written in accordance with AFMAN 64-108, Base Level Services Contracts, follow these procedures. For all other service contracts, consider the following:

(1) Establish the degree of nonconformity with the assistance of appropriate technical personnel.

(2) Notify the contractor, in writing, that the services performed or the reports furnished did not conform to contract requirements. Include at least the following information:

(i) The requirements of the work statement with which the contractor did not fully comply;

(ii) Any corrective actions which must be complied with before acceptance;

(iii) The reason(s) for the Government's decision to accept the services or reports short of full compliance, e.g., additional cost (in the case of a cost-reimbursement contract), type delay, impossibility of re-performance on the part of the contractor as could be the case in some service-type contracts, etc.; and

(iv) Request a credit proposal, as appropriate, so that a contract modification may be issued to authorize acceptance of the services, research and/or development, or reports with the deviations as specified.

(3) Negotiate appropriate consideration or downward equitable adjustment and modify the contract to authorize acceptance of the services or reports with specifically listed nonconformances.

SUBPART 5346.7--WARRANTIES

5346.703 Criteria for use of warranties.

(90) To support a determination that a weapon system warranty (WSW) is cost effective, a cost benefit analysis (CBA) in accordance with AFI 65-501, Economic Analysis, must be accomplished.

(91) A Foreign Military Sales (FMS) customer-directed WSW does not require a CBA unless specifically requested.

(92) Follow-on contracts on acquisition programs that have established WSW provisions may continue such provisions without conducting a CBA as long as no changes to warranty price are anticipated and no changes to planned operational, maintenance, or supply concepts have been made.

5346.704 Authority for use of warranties.

(90) The contracting officer shall document the decision to purchase a WSW. This documentation shall include the chief of the contracting office approval citing applicable rationale and a CBA (if applicable).

5346.710 Contract clauses.

When creating warranty clauses, consider the guidelines in the AFMC Weapon System Warranty Guide.

5346.770 Warranties in weapon system acquisitions.

5346.770-2 Policy.

(90) Approval authority for the determination that an item does not meet the definition of a weapon system (DFARS 246.770-1(f)) is the PEO/DAC for PEO/DAC Programs, and the Center Commander for Other Contracting. Obtain legal and COCO coordination on the determination.

5346.770-7 Cost-benefit analysis.

(90) AFI 65-501, Economic Analysis, prescribes requirements for warranty economic analyses.

5346.770-91 Establishing essential performance requirements.

(a) Authority to designate EPRs is delegated to the PEO/DAC for PEO/DAC Programs and the Center Commander for Other Contracting.

PART 5347--TRANSPORTATION

SUBPART 5347.1--GENERAL

5347.104 Government rate tenders under section 10721 of the Interstate Commerce Act.

5347.104-4 Contract clauses.

(90) Insert the clause at 5352.247-9000, Commercial Bill of Lading Shipments - Carrier's Rates, in Section F of all f.o.b. origin cost-reimbursement and fixed-price solicitations and contracts incorporating FAR 52.247-1, Commercial Bill of Lading Notations (see FAR 47-104.4(b)).

SUBPART 5347.3--TRANSPORTATION IN SUPPLY CONTRACTS

5347.303 Standard delivery terms and contract clauses.

5347.303-4 F.o.b. origin, freight prepaid.

(c)(90) Insert the clause at 5352.247-9001, F.o.b. Origin, Freight Prepaid, in Section F when the contracting officer and transportation office determine it is in the best interest of the Government to authorize prepaid freighting charges (e.g., origin of shipment is Canada).

(91) Insert the clause at 5352.247-9002, F.o.b. Origin, Transportation Instructions, in Section F when the transportation administration is retained by the contracting office with the concurrence of the transportation office.

5347.305 Solicitation provisions, contract clauses, and transportation factors.

5347.305-6 Shipments to ports and air terminals.

(a)(90) This subsection addresses shipments of U.S. Government material (non-FMS) originating overseas such as deliveries from foreign firms or CONUS firms with overseas operations. Insert the clause at 5352.247-9003, F.o.b. Point for U.S. Shipments Originating Outside the Continental U.S., in Section F when shipments originate outside the continental U.S. for U.S. requirements.

(91) Insert the clause at 5352.247-9004, F.o.b. Point for FMS Shipments Originating Outside the U.S., and FAR 52.247-34, F.o.b. Destination, in Section F when FMS shipments originate outside the continental U.S.

5347.305-10 Packaging, marking, and consignment instructions.

(a)(90) Use AFMC Form 158, Packaging Requirements, or similar document for all acquisitions requiring delivery of hardware items.

(91) Insert the clause at 5352.247-9005, Shipping Container Bar Code Marking, substantially as written, in Section D when the Government requires bar coding over and above the requirements of MIL-STD-129, Military Standard Marking for Shipment and Storage. (See 5352.247-9007, Specification Commercial Packaging and Marking; and 5352.247-9009, Military Packaging and Marking). The additional bar coding requirements will be identified on the AFMC Form 158.

(92) Insert the clause at 5352.247-9006, Marking of Warranted Items, substantially as written, in Section D when the items to be delivered are covered by a warranty.

(93) Insert the clause at 5352.247-9007, Specification Commercial Packaging and Marking, in Section D when the Government requires the use of commercial packaging and marking to the American Society for Testing Materials Specification D3951. This is the preferred commercial packaging and marking requirement.

(94) Insert the clause at 5352.247-9008, Contractor Commercial Packaging and Marking, in Section D when other packaging and marking requirements are not appropriate or acceptable to the offeror. In addition to this clause, if bar coding is required, use 5352.247-9005, Shipping Container Bar Code Marking, to identify appropriate requirements.

(95) Insert the clause at 5352.247-9009, Military Packaging and Marking, in Section D when military specification packaging and marking are required.

(96) When the contractor is to develop (design and/or manufacture) a new engineered or specialized container, the requirement must be identified as a separate line item in the purchase request, the solicitation, and the contract. The proposal shall include the proposed container cost broken into design and manufacturing elements. Approval for purchase of new containers shall be determined by ASC/WMGC, 102 West D Avenue, Suite 168, Eglin AFB FL 32542-6807 for munitions containers and AFMC LSO/LOP, 5215 Thurlow Street, Wright-Patterson AFB OH 45433-5540 for nonmunitions containers. The approval shall be provided to the contracting officer for notification to the contractor. Insert the clause at 5352.247-9010, Engineered or Specialized Containers, substantially as written, in Section D. Data items, DI-PACK-80683, Container Design and Retrieval System (CDRS) Search Request, and DI-PACK-80684A, Container Design and Retrieval System (CDRS) Data Input, must be identified on the DD Form 1423, Contract Data Requirements List.

(97) Insert the clause at 5352.247-9011, Packaging and Marking of Hazardous Material, substantially as written, in Section D when an acquisition is for the delivery of commercial or military items involving hazardous material.

(98) Insert the clause at 5352.247-9012, Packaging for Inspection and Acceptance at Destination, in Section D when packaged material requires inspection at destination.

(99) Insert the clause at 5352.247-9013, Packaging Data, in Section D when the Government will purchase the rights to the packaging design and data.

(b)(90) When the purchase request is for spare parts to be delivered f.o.b. origin and the items are ASI candidates, insert the clause at 5352.247-9014, Unilateral Amended Shipping Instructions (ASIs), F.o.b. Origin, in Section F.

(91) When the "ship to" is unknown at the time of award, shipping instructions shall be provided through contract modifications. These shipping instructions shall identify shipping destinations in accordance with the Department of Defense Activity Address Directory (DoDAAD) or Military Assistance Program Address Directory (MAPAD) codes assigned. Telephone, teletype, or telegram shipping instructions issued pursuant to FAR 47.305-10(c) shall be confirmed through a contract modification.

(92) For shipment of Foreign Military Sales (FMS) material:

(i) The following data are required on the acquisition documents and in the resulting contracts or orders:

(A)"Ship to" Military Assistance Program Address Code (MAPAC).

(B)"Mark for" MAPAC.

(C)MILSTRIP requisition number.

(D)MILSTRIP supplemental address.

(E)Issue Priority Designator.

(ii) The complete in-the-clear address for the MAPACs shall be provided to the contractor by the cognizant transportation office when the material is available for shipment. In-the-clear addresses shall not be printed in the contracts or orders for the MAPACs because they are subject to frequent change. When contracts or orders show shipping points outside of CONUS, the requiring activity shall assure that shipping instructions conform to the negotiated delivery conditions.

(93) These shipments shall include data similar to (b)(i)(A) through (b)(i)(D) of DFARS 247.305-1. The transportation office of the organization providing contract administration services shall convert the data to a transportation control number (TCN) as prescribed by DoD 4500.32-R, Military Standard Transportation and Movement Procedures, Volume I, Appendix C, and a transportation account code (TAC) as prescribed by DoD 4500.32-R, Volume II, Chapter 11.

(94) Insert the clause at 5352.247-9015, Temporary Storage of FMS Munitions Items, in Section F for FMS munitions items when it is anticipated that the clear text shipping address and transportation instructions may not be available when the units are ready for shipment at the contractor's plant.

(d)(91) (deleted).

5347.305-12 Delivery of Government-furnished property.

(a)(90) Insert the clause at 5352.247-9017, F.o.b. Point for Delivery of Government-Furnished Property, in Section F when the contract includes FAR 52.247-55, F.o.b. Point for Delivery of Government-Furnished Property, and the Government shall pay transportation costs to the f.o.b. point.

5347.373-90 DD Form 1654, Evaluation of Transportation Cost Factors.

To provide a more rapid response of transportation cost evaluation data for competitive procurements, procedures as outlined below may be used.

(a) Complete applicable portions of the DD Form 1654. Enter the price difference between the two lowest bidders/offerors on the last line in Column "A".

(b) The transportation specialist shall compare the price difference with the maximum transportation cost for the item:

(1) When the computed cost is 80% or more than the price spread in Column "A," complete all remaining portions of the DD Form 1654.

(2) When the computed cost is less than 80% of the price spread in Column "A," annotate the DD Form 1654 that transportation costs are not significant in this procurement and include the maximum transportation cost figure computed above.

PART 5349--TERMINATION OF CONTRACTS

SUBPART 5349.1--GENERAL PRINCIPLES

5349.101 Authorities and responsibilities.

(d) Each SCCO shall consider appointing and training at least one TCO.

5349.105 Duties of termination contracting officer after issuance of notice of termination.

5349.105-3 Termination case file.

(90) When a contract is terminated for convenience and retained for settlement, include records of all actions relative to the settlement. If assigned to a contract administrative office for settlement, the file shall include the following:

(1) AF Form 3056, Termination Authority.

(2) Notice of Termination.

(3) Confirming Modification (SF 30), Notice of Termination.

(4) Assignment for Settlement Authority.

(5) DD Form 1598, Contract Termination Status Reports. (initial, semi-annual, and closing).

(6) Release of Excess Funds documents.

(7) Settlement Memorandum (if available).

(8) Supplemental Settlement Agreement (if available).

(9) Audit Reports/Correspondence, if applicable.

(10) Records of Partial Payments, if applicable.

(11) Subcontractor Settlement Documents, if applicable.

(91) Convenience termination case files are considered closed when all settlement actions are completed. Retain completed case files in a closed status not less than six months from the completion date.

(92) A separate termination case file shall be maintained for each defaulted contract. When the official contract file is available, it is not necessary that the contract, changes thereto, and pertinent correspondence be reproduced and included in the termination case file. The case file shall contain the following as applicable:

(1) AF Form 3056, Termination Authority.

(2) Contracting officer's statement of facts describing how the contractor failed to comply with the provisions of the contract.

(3) All correspondence issued and received subsequent to the date the contract was referred by the contracting officer for proposed default.

(4) TCO's memorandum explaining reasons for the action taken. A separate memorandum is not required if the contracting officer's statement of fact fully documents events and the notice of termination document explains the rationale for the TCO's actions.

(5) Legal opinions and recommendations.

(6) Default Termination Notice (including proof of delivery).

(7) Notice of Appeal.

(8) Index of DFARS Appendix A, Rule 4, documents and related correspondence.

(9) Request for reprocurement information.

(10) Release of funds documentation.

(11) Reprocurement data and correspondence.

(12) Excess costs (and other damages) computation.

(13) Notice of assessment or nonassessment of excess costs.

(14) Trial attorney correspondence.

(15) Armed Services Board of Contract Appeals (ASBCA) or U.S. Court of Federal Claims Decision.

(16) Correspondence implementing ASBCA or U.S. Court of Federal Claims Decision.

(17) Closing documents.

(93) The TCO shall close-out default termination case files with a DD Form 1594, Contract Completion Statement, after all assessment and appeal actions are complete. When a default termination is converted to either convenience or other action, the case file will be closed and provided to the contracting officer responsible for further action.

SUBPART 5349.4--TERMINATION FOR DEFAULT

5349.402 Termination of fixed-price contracts for default.

5349.402-4 Procedure in lieu of termination for default.

(90) If the contractor has not performed contractual obligations and the contract or purchase order does not contain a default clause, a civil remedy exists for breach of contract. If a breach of contract is considered, the contracting officer shall:

(1) Obtain legal advice if there is doubt as to the existence of a bilateral contract. (See FAR 13.504 for termination or cancellation of purchase orders.)

(2) Determine if there is a basis for a breach.

(3) If the facts support breach, conduct the review in accordance with FAR 49.402-3(f) to determine whether a breach of contract action is in the Government's best interest. In addition to factors in FAR 49.402-3(f):

(i) Consider the rights and remedies available to the Government.

(ii) Consult with the legal office.

(iii) If pursuing a no-cost termination, use the formats in FAR 49.603-6 and -7 as guides. Ensure technical personnel and legal office personnel review the action.

(4) After legal review and a decision to issue a breach notice, submit the file to AFMC LO/JAB (AFFARS 5333.211). Include in the breach notice all of the information in FAR 33.211(a)(4) and use substantially the following wording, concluding with the language from FAR 33.211(a)(4)(v):

PART 5352--SOLICITATION PROVISIONS AND CONTRACT CLAUSES

TABLE OF CONTENTS

SUBPART 5352.2--TEXTS OF PROVISIONS AND CLAUSES

5352.207-9002 Rights of the Government to Perform Functions With its Own Personnel.

As prescribed in 5307.391(c), insert the following clause in Section I:

RIGHTS OF THE GOVERNMENT TO PERFORM FUNCTIONS WITH

ITS OWN PERSONNEL (AFMC) (JUL 1997)

(a) The Government reserves the right to perform or supplement performance of contract functions with Government personnel during periods of disaster, war emergencies, police actions, or acts of God.

(b) The performance described in (a) above, will not constitute a breach of contract by the Government within the meaning of FAR 52.249-8, Default (Fixed-Price Supply and Service).

(End of clause)

5352.209-9000 Special Standards.

As prescribed in 5309.104-2(a), insert a provision, substantially as written, in Section M. Tailor the provision to include an appropriate method of verifying that offerors meet the special standards.

SPECIAL STANDARDS (AFMC) (JUL 1997)

(a) Special standards of responsibility apply to this acquisition in accordance with FAR 9.104-2, Special Standards, paragraph (a). The following special standards apply:

(List)

(b) The offeror shall submit documentation with the proposal that demonstrates the offeror meets the above special standards. The Contracting Officer may request additional documentation after receipt of proposals. This documentation shall be used to determine whether or not an offeror meets the special standards of responsibility. Offerors failing to meet the special standards referenced in paragraph (a), above, shall be determined to be nonresponsible and, therefore, ineligible to receive contract award.

(End of provision)

5352.209-9001 Resubmission of First Articles.

As prescribed in 5309.308, insert the following clause in Section I:

RESUBMISSION OF FIRST ARTICLES (AFMC) (AUG 1998)

If first article retesting/resubmission is authorized under FAR 52.209-3, First Article Approval--Contractor Testing, paragraph (c) or 52.209-4, First Article Approval--Government Testing, paragraph (c), costs to the Government related to the retesting/resubmission, including administrative costs for the contract modification, in the amount of (insert estimate from AFMC Form 260 for retesting value and up to $500 for administrative costs), shall be borne by the Contractor and deducted from the contract price. When the Government determines that a complete retest is not required, the Contracting Officer may adjust the total retesting cost accordingly.

(End of clause)

5352.209-9002 Organizational Conflict of Interest.

As prescribed in 5309.507-90(a) and 5315.209-90(i), insert the following clause, substantially as written, in Section I:

ORGANIZATIONAL CONFLICT OF INTEREST (AFMC) (JUL 1997)

(a) The following restrictions and definitions apply to prevent conflicting roles which may bias the Contractor's judgment or objectivity, or to preclude the Contractor from obtaining an unfair competitive advantage in concurrent or future acquisitions.

(1) Descriptions or definitions:

"Contractor" means the business entity receiving the award of this contract, its parents, affiliates, divisions and subsidiaries.

"Development" means all efforts towards solution of broadly-defined problems. This may encompass research, evaluating technical feasibility, proof of design and test, or engineering of programs not yet approved for acquisition or operation.

"Proprietary Information" means all information designated as proprietary in accordance with law and regulation, and held in confidence or disclosed under restriction to prevent uncontrolled distribution. Examples include limited or restricted data, trade secrets, sensitive financial information, and computer software; and may appear in cost and pricing data or involve classified information.

"System" means the system that is the subject of this contract.

"System Life" means all phases of the system's development, production, or support.

Alternate VI (AFMC) (JUL 1997). As prescribed in 5309.507-90(a)(7), add the following paragraph (b) to the basic clause substantially as written. If either Alternate III or IV or both are used, renumber this paragraph accordingly.

(b) The above restrictions shall be included in all subcontracts, teaming arrangements, and other agreements calling for performance of work which is subject to the organizational conflict of interest restrictions identified in this clause, unless excused in writing by the Contracting Officer.

5352.209-9003 Potential Organizational Conflict of Interest.

As prescribed in 5309.507-90(b) and 5315.209-90(i), insert the following provision, substantially as written in Section L:

POTENTIAL ORGANIZATIONAL CONFLICT OF INTEREST (AFMC) (JUL 1997)

(a) There is potential organizational conflict of interest (see FAR Subpart 9.5, Organizational and Consultant Conflicts of Interest) due to (state the nature of the proposed conflict). Accordingly:

(1) Restrictions are needed to ensure that (state the nature of the proposed restraint and the applicable time period).

(2) As a part of the proposal, the offeror shall provide the Contracting Officer with complete information of previous or ongoing work that is in any way associated with the contemplated acquisition.

(b) If award is made to the offeror, the resulting contract may include an organizational conflict of interest limitation applicable to subsequent Government work, at either a prime contract level, at any subcontract tier, or both. During evaluation of proposals, the Government may, after discussions with the offeror and consideration of ways to avoid the conflict of interest, insert a special provision in the resulting contract which shall disqualify the offeror from further consideration for award of future contracts.

(c) The organizational conflict of interest clause included in this solicitation may be modified or deleted during negotiations.

(End of provision)

Alternate I (AFMC) (JUL 1997) At the discretion of the Contracting Officer, substitute the following paragraph (b) for paragraphs (b) and (c) in the basic provision:

(b) The organizational conflict of interest clause in this solicitation may not be modified or deleted.

5352.211-9000 Use of Cancelled Military Specifications and Standards.

As prescribed in 5311.204(90), add the following provision, substantially as written, in Section L of all solicitations for reprocurement of replenishment spare parts using technical data packages:

USE OF CANCELLED MILITARY SPECIFICATIONS AND STANDARDS

(AFMC) (JUL 1997)

(a) The drawings, descriptions, or work statements which are part of this solicitation may cite or make reference to military specifications and/or military standards (MIL-Spec/STDs), or other standardized documents which have been superseded, cancelled or inactivated since the drawings, descriptions, or work statements were prepared.

(b) Offerors may submit, at their discretion, alternatives to the superseded or cancelled MIL-Specs/STDs cited in the Technical Data Package. Unless the alternative is specifically approved by the Government, the superseded or cancelled documents contained in this solicitation shall remain fully applicable to any resulting contract.

(c) If alternatives are submitted, the Government will evaluate Contractor-proposed alternatives to the superseded or cancelled MIL-Specs/STDs which are cited in this solicitation. In submitting proposed alternatives for Government consideration, the offeror shall include:

(1) A copy of the proposed alternative(s) (e.g., Commercial Item Description, Nongovernment Standard, Company Standard). When commercial items are proposed, performance test results and interface information may suffice;

(2) An analysis of the proposed alternative(s) to include, but not limited to, a discussion on technical and material feasibility, past performance application of alternative, cost-effectiveness from a life-cycle perspective, pollution prevention, and any restriction that may be imposed on the Government's use of the proposed alternative and;

(3) An assessment of the impact any proposed alternative(s) will have on the source qualification process or the need for first article testing.

(d) Copies of cancelled Mil-Specs/STDs may be obtained from the DoD Single Stock Point, Standardization Document Order Desk, Building 4D, 700 Robins Avenue, Philadelphia, PA 19111-5094 by referring to this solicitation.

(End of provision)

(k) Material offered is warranted by the Contractor for a period of ____months as contemplated by FAR 52.246-17, Warranty of Supplies of a Noncomplex Nature. (12 Months is presumed unless otherwise specified. If surplus is purchased, warranty may or may not be included in the award.)

(l) The surplus items offered fit the conditional definition indicated below: (Check the appropriate definition and provide requested information. Use additional paper if more space is necessary. (NOTE: Dates, Technical Order compliance, quality considerations, and component sources are essential information for categories (2), (3), and (4) below.)

[ ] (1) New and unused: material has never been installed or used. It shows no signs of rust, corrosion, or other deterioration due to age or improper packaging/preservation. It has not been reconditioned and shows no evidence of disassembly or reassembly.

[ ] (2) New and reconditioned: material has never been installed or used. It shows no signs of rust, corrosion, or other deterioration due to age or improper packaging/preservation. Reconditioning is allowed to the extent that gaskets, seals, O-rings, or other such cure-dated items have been or will be replaced prior to use in accordance with the applicable technical orders and specifications.

Source of reconditioning: ____________

Summary of reconditioning: ____________

[ ] (3) New and modified: material has never been installed or used. It shows no signs of rust, corrosion, or other deterioration due to age or improper packaging/preservation. Components may have been (or may need to be) replaced in accordance with the applicable technical specifications for the purpose of configuration update or modification.

Source of modification: ____________

Summary of modification: ____________

[ ] (4) Used and overhauled: material which has been previously installed in operational equipment. It has been or can be completely overhauled, repaired, reconditioned, or modified per the applicable technical specifications to serviceable status.

Source of overhaul: ____________

Overhaul technical order: ____________

(End of provision)

5352.211-9019 Evaluation of Used and/or Overhauled Surplus Material.

As prescribed in 5311.390(b), insert the following provision in Section M:

EVALUATION OF USED AND/OR OVERHAULED

SURPLUS MATERIAL (AFMC) (AUG 1998)

For the purpose of price evaluation when comparing proposed prices for used and/or overhauled material with new material, the following shall be added to the proposed price for used and/or overhauled surplus material:

(a) The Government cost incurred, if any, by the equipment specialist/engineer to inspect the used and/or overhauled surplus material for acceptability/serviceability.

(b) A percentage factor, if appropriate, of the lowest proposed price for new material, if fully justified by the equipment specialist/engineer, in consideration of reduced service life, reliability, and/or surplus condition. If the necessity for such percentage factor addition becomes known during negotiations, the percentage to be added shall be made known in writing to the offeror(s) at the time final proposal revisions are requested. Such amount shall then be added to the proposed price for such material.

(c) If the items are unserviceable, the estimated cost for any Government rework, repair, modification, reconditioning or overhaul from the provision at 5352.211-9020, "Evaluation of Items Requiring Reconditioning, Modification, Repair or Overhaul by the Government." After the addition of the foregoing, the resulting sum shall be directly compared to the lowest proposed price for new material. This provision applies to (insert contract line item(s)).

(End of provision)

5352.214-9000 Letter Response to Solicitation.

As prescribed in 5314.301(d)(90), insert the following provision, substantially as written, in Section L of all IFBs:

LETTER RESPONSE TO SOLICITATION (AFMC) (JUL 1997)

(a) If a form/letter bid is submitted in response to this solicitation, the form/letter must include:

(1) A statement accepting all terms and conditions of the solicitation;

(2) Unit and total prices by line item and the total price for the requirement;

(3) Item number(s), f.o.b. point (destination or origin), quantity, discount terms, and delivery;

(4) Responses to the representations and certifications contained in Section K of the solicitation; and

(5) A listing of the solicitation amendment(s), including the number received, if any.

(b) The envelope must be clearly marked as a form/letter bid and must identify the solicitation number and the bid opening date and time.

(End of provision)

5352.214-9001 Award-All or None Basis.

As prescribed in 5314.301(d)(91) or 5315.209-90(b), insert the following provision in Section M:

AWARD-ALL OR NONE BASIS (AFMC) (AUG 1998)

Notwithstanding FAR provision (select one of these provisions as appropriate): 52.214-10, Contract Award--Sealed Bidding, paragraph (c), 52.214-19, Contract Award--Sealed Bidding--Construction, paragraph (c), 52.215-1, Instructions to Offerors - Competitive Acquisition, paragraph (f), award shall be made to a single bidder/offeror whose bid/offer responds to all items included in the solicitation. Failure to provide for any item including any option shall render the bid nonresponsive or may cause the offeror's proposal to be rejected.

(End of provision)

5352.215-9000 Representations and Certifications.

As prescribed in 5314.201-5(90) and 5315.209-90(a), insert the following provision in Section K:

REPRESENTATIONS AND CERTIFICATIONS (AFMC) (JUL 1997)

Annually, this AFMC activity provides Contractors with a full-text Representations, Certifications, and other Statements of Offerors or Quoters (Section K) package; therefore, when appropriate, only the title, regulation reference number, date, and fill-in-portion (if any) of such provisions applicable to this solicitation will be provided. Using the full-text Representations, Certifications, and Other Statements of Offerors or Quoters previously provided, please complete all the provisions included in this solicitation and return with your bid/proposal. Completion of this section represents certification that the responses are current, accurate, and complete as of the date of this bid/proposal. If you have not obtained a copy of the full-text Representations, Certifications, and Other Statements of Offerors or Quoters package, a copy may be obtained from: (insert buying activity address or WWW address.)

(End of provision)

5352.215-9001 Engineering Data.

As prescribed in 5315.209-90(c), insert the following provision in Section L:

ENGINEERING DATA (AFMC) (JUL 1997)

(a) In the event that the offeror proposes an alternate part number to the Government's requirement in the contract schedule, the offeror shall provide a copy of the product drawings with their offer. If the Government awards a contract for the proposed alternate part, the drawings furnished with the proposal will be retained by the Government and used only as authorized by DFARS 252.227-7015, Technical Data-Commercial Items. In the event that the Government does not accept the alternate part number, the drawings provided with the proposal shall be returned to the offeror. The Government does not intend to pay for the drawings provided with the proposal. In the event that the Government desires to procure the drawings for use in repair or reprocurement, a line item may be added to the instant contract or a separate contract for the data may be awarded.

(b) The offeror is solely responsible for determining that the proposed part is equal to and interchangeable with the part originally required in the schedule. The Government's review of the data furnished for the purposes described above does not constitute agreement that the proposed part is equal to or interchangeable with the part originally required. By submission of its offer, the

offeror warrants such alternate part to be equal to and completely interchangeable with the part originally required. In the event that the alternate part is not equal to and completely interchangeable with the part originally required, the items shall be returned to the offeror for replacement with the originally required part at no cost to the Government. In addition, the offeror shall be liable for any shipping costs associated with return and replacement of the items as well as any additional inspection and acceptance costs to the Government for the replacement items.

(End of provision)

5352.215-9002 Replacement Items.

As prescribed in 5315.209-90(c) insert the following clause in Section B:

REPLACEMENT ITEMS (AFMC) (JUL 1997)

In the event that alternate part (insert part number) is not equal to and completely interchangeable with part (insert part number) originally required in the solicitation, the items shall be returned to the offeror for replacement with the originally required part at no cost to the Government. In addition, the Contractor shall be liable for any shipping costs associated with return and replacement of the items as well as any additional inspection and acceptance costs to the Government for the replacement items. Drawings retained by the Government associated with the alternate part number(s) will be used only as authorized by DFARS 252.227-7015, Technical Data-Commercial Items.

(End of clause)

5352.215-9003 Proposal Samples.

As prescribed in 5315.209-90(d), insert the following provision, substantially as written, in Section L:

PROPOSAL SAMPLES (AFMC) (JUL 1997)

(a) "Proposal samples" are item sample submissions required of offerors to show those characteristics of the offered products that cannot adequately be described by specifications or purchase descriptions (e.g., balance, facility of use, or pattern).

(b) Proposal samples must be furnished as part of the offer and must be received by the time specified for receipt of proposals. Failure to furnish samples on time may require rejection of the offer in accordance with the late submissions, modifications, and withdrawals of proposals provision of this solicitation.

(c) Proposal samples shall be tested or evaluated to determine compliance with all the characteristics listed for examination in this solicitation. Failure of these samples to conform to the required characteristics may render an offer unacceptable. Products delivered under any resultant contract must conform to (1) the approved sample for the characteristics listed for test or evaluation and (2) the specifications for all other characteristics.

(d) Unless otherwise specified herein, proposal samples shall be submitted at no expense to the Government and returned at the offeror's request and expense, unless they are destroyed during preaward testing.

(End of provision)

Alternate I (AFMC) (JUL 1997). As prescribed in 5315.209-90(d)(1), insert the following paragraph:

(e) The Contracting Officer may waive the requirement for furnishing proposal samples if (1) the offeror states that it offered the same product to (insert designated contracting office/activity) and (2) that product was accepted or tested and found to comply with specification requirements conforming in every material respect with those in this solicitation.

Alternate II (AFMC) (JUL 1997). As prescribed in 5315.209-90(d)(2), insert the following paragraph:

(e) The Contracting Officer may waive the requirement for furnishing proposal samples if (1) the offeror states that it offered the same product to (insert designated contracting office/activity) and (2) that product was accepted or tested and found to comply with specification requirements conforming in every material respect with those in this solicitation and (3) the product offered for this solicitation will be produced at the same plant where the previously acquired or tested product was produced.

5352.215-9004 Evaluation of Proposals Submitted When Qualification Requirements Do Not Exist.

As prescribed in 5315.209-90(e), insert the following provision, substantially as written, in Section L:

EVALUATION OF PROPOSALS SUBMITTED WHEN QUALIFICATION

REQUIREMENTS DO NOT EXIST (AFMC) (JUL 1997)

(a) Either a complete and adequate data package is not available to be provided as a part of this solicitation, or special materials, facilities, tooling, or test equipment which may be required for performance are not available from the Government. Offers from firms not previously identified as sources for this

requirement will only be considered when it can be determined prior to award that the item or services being offered will meet the Government's requirements.

(b) Offers from firms other than those previously identified and listed below must submit with their proposal the following (as applicable):

(1) Proof that you have previously provided, or are currently providing, the same or similar item to DoD or to an OEM. This can be a list of present or past Government contract numbers, with award dates, and Material Inspection and Receiving Report (DD Form 250).

(2) A complete set of drawings.

(3) Brochures describing your company's capabilities, with a facilities list showing plant equipment, machinery, special tooling, fixtures, etc.

(4) Identification of your subvendors and processes they will perform.

(c) The following previously identified source(s) need not comply with paragraph (b) above:

NAME OF KNOWN SOURCE(s) CAGE CODE

________________________________________ __________

________________________________________ __________

________________________________________ __________

________________________________________ __________

(End of provision)

Alternate I (AFMC) (JUL 1997). As prescribed in 5315.209-90(e), substitute paragraph (b) below for paragraph (b) of the basic provision when soliciting repair and overhaul services.

(b) Offers from firms other than those previously identified and listed below must submit with their proposal the following (as applicable):

(1) Evidence of capability (i.e., brochures, company experience, technical information, FAA certification, purchase information, purchase orders or contracts).

(2) Facilities description.

(3) Support and test equipment availability.

(4) Kits and piece parts availability.

(5) Description of your Quality Program.

5352.215-9005 Incorporation of Contractor's Technical Proposal.

As prescribed in 5315.209-90(f), insert the following clause in Section I:

INCORPORATION OF CONTRACTOR'S TECHNICAL PROPOSAL (AFMC) (AUG 1998)

(a) The following documents are incorporated herein by reference and made a part of this contract:

Paragraph Nos. (insert paragraph number) through (insert paragraph number) of Contractor's Technical Proposal (or appropriate document(s) name) Version No. (insert appropriate version number), dated (insert date), entitled (insert title).

(b) Nothing contained in the Contractor's technical proposal shall constitute a waiver to any other requirement of this contract. In the event of any conflict between the Contractor's technical proposal and any other requirement of the contract, the conflict shall be resolved in accordance with the Order of Precedence clause. For purposes of the Order of Precedence clause the document(s) listed above shall rank (insert rank order).

(c) The detailed technical content of the Contractor's proposal was an important factor in the selection of the Contractor for award of this contract. The documents listed above are now contractually binding. The Contractor shall not change or otherwise deviate from the content of these documents without prior written approval from the Contracting Officer.

(d) If it is necessary to change the performance, design, configuration, or other items specified in the technical proposal in order to comply with the requirements of the contract clauses, special contract requirements, or statement of work, the contract shall be modified appropriately.

(e) The Contractor agrees that the documents listed above reflects the results/responses to all exchanges and/or Evaluation Notices (ENs) issued during the negotiation process. If, after contract award, it is discovered that changes made during negotiations were not incorporated in the SOW and/or technical proposal, such changes to the Contractor's documents shall be considered administrative in nature and shall be made by unilateral modification to the contract, at no change in contract cost or price or other terms and conditions.

(End of clause)

5352.215-9006 Intent to Incorporate Contractor's Technical Proposal.

As prescribed in 5315.209-90(g), insert the following provision in Section L:

INTENT TO INCORPORATE CONTRACTOR'S TECHNICAL PROPOSAL

(AFMC) (AUG 1998)

(a) All or part of the successful offeror's technical proposal may be incorporated in any contract resulting from this solicitation. The successful offeror's technical proposal may be incorporated by reference. Nothing contained in the successful offeror's technical proposal shall constitute a waiver to any other requirement of the contract. In the event of any conflict between the successful offeror's technical proposal and any other requirement of the contract, the conflict shall be resolved in accordance with the Order of Precedence clause.

(b) The successful offeror will provide an updated technical proposal which reflects the results/responses to all exchanges and/or Evaluation Notices (ENs) issued during the negotiation process for incorporation in the contract. If, after contract award, it is discovered that changes made during negotiations were not incorporated in the SOW and/or technical proposal, such changes to the Contractor's documents shall be considered administrative in nature and shall be made by unilateral modification to the contract, at no change in contract cost or price or other terms and conditions.

(End of provision)

5352.215-9007 Use of Non-Government Advisors.

As prescribed in 5315.209-90(h), insert the following provision in Section L:

USE OF NON-GOVERNMENT ADVISORS (AFMC) (JUL 1997)

Offerors are advised that data submitted to the Government in response to this solicitation may be released to non-Government advisors for review and analysis.

(End of provision)

5352.215-9008 Enabling Clause Between Prime Contractors and Service

Contractors.

As prescribed in 5315.209-90(j), insert the following clause, substantially as written, in Section I:

ENABLING CLAUSE BETWEEN PRIME CONTRACTORS

AND SERVICE CONTRACTORS (AFMC) (JUL 1997)

(a) The Air Force has entered into contracts with (insert the service Contractor(s) name(s)) for services to provide (insert major support areas, such as technical, evaluation, and acquisition management support).

(b) Service tasks involve the application of a broad range of education, skills, knowledge, and experience in many disciplines in support of weapon system acquisition tasks. Tasks involve (insert applicable task detail).

(c) In the performance of this contract, the Contractor agrees to cooperate with (insert the service Contractor's name) by: (insert areas for cooperation) (examples: responding to invitations from authorized personnel to attend meetings; providing access to technical information and research, development and planning data, test data and results, schedule and milestone data, financial data including the Contractor's cost/schedule management system/records and accounting system, all in original form or reproduced; discussing technical matters related to the program; providing access to Contractor facilities utilized in the performance of this contract; and allowing observation of technical activities by appropriate support Contractor technical personnel).

(d) The Contractor further agrees to include in each subcontract over $1 million or 10 percent of prime contract value, whichever is less, a clause requiring compliance by a subcontractor and succeeding levels of subcontractors with the response and access provisions of paragraph (c) above, subject to coordination with the Contractor. This agreement does not relieve the Contractor of responsibility to manage subcontracts effectively and efficiently, nor is it intended to establish privity of contracts between the Government or the service Contractor(s) and such subcontractors.

(e) Service Contractor personnel are not authorized to direct a Contractor in any manner.

(f) Service contracts contain an organizational conflict of interest clause that requires the service Contractors to protect the data and prohibits the service Contractors from using the data for any purpose other than that for which the data was presented.

(g) Neither the Contractor nor their subcontractors shall be required in the satisfaction of the requirements of this clause to perform any effort or supply any documentation not otherwise required by their contract or subcontract.

(End of clause)

5352.215-9009 Travel.

As prescribed in 5315.209-90(k), insert the following clause, substantially as written, in Section I:

TRAVEL (AFMC) (JUL 1997)

(a) The Contractor may be required to travel within the contiguous United States and overseas. The Contractor may be required to travel by Government-provided transportation. Travel requirements will be reimbursed by separate voucher and must be approved in advance by the Contracting Officer. Travel requirements will be identified, proposed, and negotiated in individual task orders on a cost-reimbursement basis. Billable travel costs are air fare, ground transportation, and per diem costs, not labor hours. The Contractor shall be responsible for obtaining any passports or visas and making travel arrangements to and from any CONUS location.

(1) Per diem, air fare, and all other allowable travel costs shall be reimbursed in accordance with the Federal Acquisition Regulation. All travel within overseas areas shall be approved in advance by the Contracting Officer.

(2) The Government may provide travel to and from overseas work sites via Air Mobility Command (AMC) flights, if available. AMC travel fees may be Contractor-paid and invoiced to the Government. The Government will be responsible for obtaining travel clearances and issuance of any required special orders.

(b) Use of AMC transportation shall be approved in advance by the Contracting Officer or designee. Orders authorizing AMC travel will specify the Contractor's Customer Identification Code (CIC). If the Contractor does not have CIC number, the orders will state "special account handling: billing for AMC transportation will be forwarded to (insert Contractor's address)." Use of AMC transportation is subject to availability.

(c) The travel CLIN is intended to pay for travel occurring at the direction of the Government, performed in conjunction with a specific trip authorized in a task order. Travel by clerical support personnel shall be approved in advance by the Contracting Officer.

(End of clause)

5352.215-9010 Training.

As prescribed in 5315.209-90(l), insert the following clause, substantially as written, in Section I:

TRAINING (AFMC) (JUL 1997)

(a) When training is conducted at a Government site, Government-furnished facilities and equipment will be utilized including classrooms, overhead projectors, screen, chalkboards, and equipment installed under this contract.

(b) The Contractor shall be responsible for:

(1) Furnishing all training manuals, schematics, drawings, charts, and transparencies required to conduct training. A copy of all training materials will be provided to the Government Functional Area Evaluator (FAE) (see AFMCFARS 5337.91) for review and approval;

(2) Furnishing all equipment necessary to effectively conduct the training program except equipment that is specifically identified elsewhere in the contract as being furnished by the Government; and

(3) Conducting formal training approximately eight hours per day (excluding weekends and Government holidays).

(c) The Government FAE will be the point of contact for coordinating training dates.

(End of clause)

5352.215-9011 Lowest Evaluated Price Technique Technical Proposal

Requirements.

As prescribed in 5315.305(90), insert the following provision, substantially as written, in Section L:

LOWEST EVALUATED PRICE TECHNIQUE

TECHNICAL PROPOSAL REQUIREMENTS (AFMC) (JUL 1997)

(a) The offeror shall submit the technical proposal as a package separate from the pricing proposal and other portions of the proposal. Proposals shall include all data and information required by this solicitation. The offeror shall make no reference to price in the technical proposal. Only one technical proposal from each offeror shall be considered unless the instructions otherwise allow for alternate proposals. The offeror's technical proposal and any subsequent negotiated changes thereto shall be incorporated into any resultant contract and the commitments made therein shall be binding upon that offeror. In cases of any conflict or ambiguity between the offeror's technical proposal (including amendments) and the Government specifications, the Government specifications shall govern.

(b) Offerors are advised to submit a technical proposal which is clear and comprehensive without additional explanation or information. Nonconformance with the instructions may be cause for rejection of the proposal. The Government may make a final determination regarding responsiveness solely on the basis of the technical proposal as submitted without requesting any further information. However, if it is deemed necessary, the Government may, at its sole discretion, request additional information from offerors of proposals clarifying or supplementing, but not substantially changing, any proposal as submitted. For that purpose, the Government may discuss any such proposal with the offeror. If the Government conducts discussions with any offeror in the competitive range, the Government shall conduct meaningful discussions with all offerors in the competitive range.

(c) The offeror's proposal for the requirement shall be clear, coherent, legible, and prepared in sufficient detail for effective evaluation by the Government. Elaborate documen-tation, expensive binding, detailed art work, or other embellishments are unnecessary. The proposal shall be submitted in accordance with these instructions. The intent of the proposal shall be to provide sufficient data to support a decision to select a qualified Contractor and to award the contract. The offeror shall assume that the evaluation team has no previous knowledge of its management and experience, and that it will base its evaluation on the information presented in the proposal.

(d) The proposal shall address and track the numerical sequence of the specific information requested in (insert solicitation provision) of this solicitation.

(e) Unjustified exceptions (any instance where the offeror does not address a requirement of the RFP) could be a cause for rejecting the proposal as being nonresponsive.

(f) The proposal shall be organized as follows:

(1) The proposal shall consist of (insert volume number ) volumes numbered sequentially. The title, the contents, and the number of each volume shall be as defined in Table I of this document.

(2) Each volume shall be written, to the greatest extent possible, on a stand-alone basis so that its contents may be evaluated with a minimum of cross-referencing to other volumes of the proposal. Failure to separate the proposal into separate volumes could be a cause for rejecting the proposal as being nonresponsive.

TABLE 1

VOLUME NO. TITLE CONTENTS COPIES

NOTE: The number of copies of each volume indicated above shall be delivered to (insert mailing address). Mark proposals: "Source Selection Information - see FAR 3.104", and/or "For Official Use Only", as applicable.

(3) If information required for proposal evaluation is not found in the section designated for its presentation, it may be assumed to have been omitted from the proposal.

(4) Cost and Pricing. The costs proposed for accomplishing the program shall be confined entirely to Volume (insert volume number). The cost proposal shall consist of the offeror's cost to accomplish the basic program as defined in the Statement of Work under a Firm Fixed-Price Contract. The price proposal shall also include the offeror's price to accomplish each annual option, if applicable.

(g) The proposals shall be prepared as follows:

(1) Binding. Each volume of the proposal shall be submitted in three-ring binders. In the event that volumes are larger than a standard three-ring binder, they should be conveniently separated, clearly marked as to volume number, title, and offeror's identity.

(2) Page and Typing. Page size shall be 8 1/2 x 11 inches. Pages shall be typed one and a half spaces with a maximum of twelve characters per inch. Fold-out pages may be included in the proposal, but their width shall not exceed four regular (8 1/2 x 11 inches) pages. When included, fold-out pages shall be limited to charts, graphs, etc., and shall fold entirely within the page size of the book.

(3) Indexing. The proposal shall contain a master Table of Contents for the total proposal in Volume I. This shall identify major groupings of information as indicated by the Evaluation Criteria and their location. Each volume and section shall contain a detailed Table of Contents to delineate the subparagraphs contained therein.

(4) Cross-Referencing. Cross-referencing is permitted within proposal volumes where its use would conserve space without impairing clarity.

(End of provision)

5352.215-9012 Reserved.

5352.215-9013 Make-or-Buy Program.

As prescribed in 5315.407-2(d)(90), insert the following provision, substantially as written, in Section L:

MAKE-OR-BUY PROGRAM (AFMC) (JUL 1997)

(a) The offeror shall submit with the proposal a proposed Make-or-Buy Program to include or be supported by the following information:

(1) A description of each major item or work effort that requires company management review of the make-or-buy decision because they are complex, costly, needed in large quantities, or require additional facilities to produce. Raw materials, commercial products and off-the-shelf items shall not be included, unless their potential impact on contract cost or schedule is critical. Make-or-buy programs should not include items or work efforts estimated to cost less than (i) one percent of the total estimated contract price or (ii) $1,000,000, whichever is less.

(2) Categorization of each major item or work effort as "must make," "must buy," or "can either make or buy."

(3) For each item or work effort categorized as "can either make or buy," a proposal either to "make" or to "buy."

(i) Proposals for "make" items shall include:

(A) Basis for estimated in-plant cost for each "must make" item. If past experience on in-plant production of similar items is used as a baseline to develop this cost, explain the relationship between the similar items. If

past experience on subcontracting for similar items is used as a baseline, also explain the relationship between the two. If available, include labor standard data to support the decision to make each item in-plant. Give reasons why the competence, ability, experience, and capability at other firms that produce each "make" item do not support a "buy" decision.

(B) Plant-loading data to show projected use of existing and additional manpower and facilities to support the in-plant effort on the program. Show the optimum in-plant effort to indicate the relationship between this program and overall workload associated with other programs. Explain the effect the make-or-buy decision for each item will have on the overhead rates for this program or other Government contracts.

(ii) Proposals for "buy" shall include the basis for estimating subcontractor's cost for each "buy" item. Indicate the most likely source to

be selected. If subcontractors' proposals have not been received, indicate the estimated number of sources to be solicited for each buy item proposal and the estimated date for receipt of each proposal. If available, include labor standard data to make each item in-plant.

(iii) Proposals for "can either make or buy" shall include estimated startup costs for each make-or-buy item, to include special tooling (cross reference with tooling plan and make-or-buy summary), plant rearrangement, and any other manufacturing or indirect costs that could be considered a loss to either the Contractor or Government if a decision is made to change the initial designated make-or-buy source.

(4) Reasons for:

(i) categorizing items and work efforts as "must make" or "must buy," and;

(ii) proposing to "make" or to "buy" those categorized as "can either make or buy."

The reasons must include the consideration given to the evaluation factors described in the solicitation and be in sufficient detail to permit the Contracting Officer to evaluate the categorization or proposal.

(5) Designation of the plant or division proposed to make each item or perform each work effort.

(6) Identification of proposed subcontractors, if known, and their location and size status. Identification of items on which small business firms may be able to compete for subcontracts.

(7) Any recommendations to defer make-or-buy decisions when categorization of some items or work efforts is impracticable at the time of submission.

(b) The following factors shall be used in evaluating the proposed program:

(1) Capability;

(2) Capacity;

(3) Availability of small business for subcontracting;

(4) Delivery or performance schedules;

(5) Control of technical and schedule interfaces;

(6) Proprietary processes;

(7) Technical superiority or exclusiveness; and

(8) Technical risk involved.

(End of provision)

5352.215-9014 Submission of Cost or Pricing Data.

As prescribed in 5315.403-5(90) insert the following provision, substantially as written, in Section L:

SUBMISSION OF COST OR PRICING DATA (AFMC) (AUG 1998)

(a) It is anticipated that pricing of this action will be based on adequate price competition; therefore, offerors are not required to submit cost or pricing data. However, if after receipt of proposals it is determined that adequate price competition does not exist, cost or pricing data (see FAR 15.406-2, Certificate of Current Cost or Pricing Data) shall be required.

(b) If it is determined that adequate price competition does not exist, the offeror shall provide current, complete and accurate cost or pricing data within (insert calendar days) after receipt of the Contracting Officer's request.

(End of provision)

5352.215-9015 Reserved.

5352.215-9016 Acquisition Ombudsman.

As prescribed in 5315.9001(d), insert a provision, substantially as written, in Section L when the Ombudsman statement is not included elsewhere in the solicitation:

ACQUISITION OMBUDSMAN (AFMC) (JUL 1997)

An Ombudsman has been appointed to hear concerns from offerors or potential offerors during the proposal development phase of this acquisition. The Ombudsman does not diminish the authority of the program director or Contracting Officer, but communicates Contractor concerns, issues, disagreements, and recommendations to the appropriate Government personnel. When requested, the Ombudsman shall maintain strict confidentiality as to the source of the concern. The Ombudsman does not participate in the evaluation of proposals or in the source selection process. Interested parties are invited to call (insert Ombudsman's name) at (insert Ombudsman's telephone number).

(End of provision)

5352.217-9003 Submission of Multiyear Prices.

As prescribed in 5317.106-3(f), insert the following provision in Section L:

SUBMISSION OF MULTIYEAR PRICES (AFMC) (JUL 1997)

Offerors shall submit a response/responses priced to cover the following:

(a) Total requirements of the first program year.

(b) Total multiyear requirements (all program years).

Submissions not in accordance with above shall not be considered for award and shall be declared nonresponsive. In the event that only one response is received that is both responsive and from a responsible firm, the Government reserves the right to cancel the solicitation and resolicit on a single year basis by whatever procedures are then appropriate.

(End of provision)

5352.217-9004 Multiyear Unit Prices.

As prescribed in 5317.106-3(g), insert the following provision in Section L:

MULTIYEAR UNIT PRICES (AFMC) (JUL 1997)

Unit prices submitted for each item or service in the total multiyear requirement shall be the same for all program years (level unit price).

(End of provision)

5352.217-9005 Multiyear Pricing of Option Items.

As prescribed in 5317.107, insert the following provision in Section L:

MULTIYEAR PRICING OF OPTION ITEMS (AFMC) (JUL 1997)

In the event this solicitation provides for the use of options, option prices submitted shall not include those nonrecurring costs which are included in the basic contract.

(End of provision)

5352.217-9006 Award of Mission Essential Quantity.

As prescribed in 5317.7590-4, insert the following provision, substantially as written, in Section M when use of the Insurance Policy is desired:

AWARD OF MISSION ESSENTIAL QUANTITY (AFMC) (AUG1998)

(a) The Government has determined that a break in the supply of this item (that is, failure to deliver due to timeliness and/or conformance) would jeopardize support to operational units' mission capability. Additionally, the item is of such complexity and/or so critical that first article testing measures are required for all unproven sources to ensure that the unproven source is capable of producing a conforming part. Therefore, the Government reserves the right to award the Mission Essential Quantity (MEQ) and, if necessary, the remaining balance of the requirement, to a proven source. In such event, the proven source must be a responsive, responsible offeror and also be the lowest in price of all proven offerors, price and price related factors considered. Therefore, two contract line items are provided to correspond with each of the two alternatives.

(b) The Government shall first determine the apparent successful offeror for the complete quantity under Alternative 1. If offers are received from both proven and unproven sources and it is determined that an unproven source is the apparent low offeror (and is also responsive and responsible), then the prices under Alternative 2 shall be evaluated. Once a decision has been made to progress to Alternative 2, offers under Alternative 1 shall no longer be considered (e.g. the Contracting Officer shall not compare the proven source's offer under Alternative 1 and the unproven source's offer under Alternative 2). If only unproven sources submit offers, Alternative 1 will be used to determine the low offeror and award will be made for that quantity.

(c) A proven source is an offeror who has previously satisfactorily provided the identical item to the Government or who proposes to provide an item manufactured by the prime manufacturer or the prime manufacturer's vendor (when there is no value added by the prime manufacturer).

(d) An unproven source is an offeror who has not previously satisfactorily provided the identical item to the Government and who proposes to provide an item manufactured by other than the prime manufacturer or the prime manufacturer's vendor (when there is no value added by the prime manufacturer).

(e) Competitive negotiated acquisition procedures may be used to determine low offeror status if, (1) a proven source is not the low offeror, based on either initial proposals or on the final proposal revision if discussions are conducted, and (2) if the proven source's price is not determined to be based on adequate price competition pursuant to FAR 15.403-1, Prohibition on obtaining cost or pricing data. The contracting officer may proceed with an award to the low unproven source and may request cost or pricing data from the proven source. When received and evaluated, negotiations shall follow as necessary to determine fair and reasonable prices. Under these circumstances, any contract with the proven source would contain the clause at FAR 52.215-10, Price Reduction For Defective Cost or Pricing Data.

(f) The Government is under no obligation to exercise any options provided for under these procedures. Acceptable delivery of the basic award quantity by an unproven source shall not bind the Government to exercise all or part of the option quantities, or to exercise options in any contract with the unproven source in lieu of options in any separate award to a proven source. In addition, the Government reserves the right to reject, as nonresponsive, any offer in which the prices proposed in either Alternative 1 or 2 are determined, by the Contracting Officer, to be materially unbalanced.

(End of provision)

5352.217-9007 Interchangeable Part Number(s)/National Stock Number(s)

(Applicable to CLIN/SubCLIN(s)________).

As prescribed in 5317.7591(a), insert the following provision in Section K:

INTERCHANGEABLE PART NUMBER(S)/NATIONAL STOCK NUMBER(S)

(APPLICABLE TO CLIN/SUBCLIN(S)________) (AFMC) (JUL 1997)

Offerors shall indicate below the part number and National Stock Number being offered. If this is a negotiated acquisition, failure to so indicate may result in the offer being considered unacceptable. If this acquisition uses sealed bidding procedures, failure to so indicate shall result in the offer being considered nonresponsive.

__________________ _______________ _________________________

(Manufacturer) (Part Number) (National Stock Number)

(End of provision)

5352.217-9008, Assignment of National Stock Numbers (Applicable to

CLIN/SubCLIN(s)_________).

As prescribed in 5317.7591(b), the Contracting Officer shall insert the following clause in Section D:

ASSIGNMENT OF NATIONAL STOCK NUMBERS (APPLICABLE TO CLIN/SUBCLIN(S)_________) (AFMC) (AUG 1998)

Unless waived in writing by the Contracting Officer, the assignment of a National Stock Number (NSN) is a prerequisite to shipment of property destined for stock under this contract. If the Contractor has not received applicable NSNs for the shipping date, the Contractor shall notify (insert responsible Government office symbol, location and phone number) and request the NSNs.

(End of clause)

5352.217-9009 Provisioning Procedures.

As prescribed in 5317.7602-1(90), insert the following clause, substantially as written, in Section I:

PROVISIONING PROCEDURES (AFMC) (AUG 1998)

(a) Provisioning functions to be performed:

(1) Procuring Contracting Officer (PCO) and Administrative Contracting Officer (ACO) responsibilities. The PCO is the only individual authorized to provide redirection of effort, modify or amend any of the terms or conditions of this contract except as stated below. The Provisioning PCO (PPCO) is the only individual authorized to issue Provisioned Item Orders (PIO) under the terms of this contract. The ACO is the individual authorized to negotiate and issue definitive priced documents under this contract.

(2) The activity designated to issue PIOs is the PPCO at (insert complete address/location). PIOs shall be issued on Standard Form 30, Amendment of Solicitation/Modification of Contract, and shall state the quantities of the specific items being ordered identified by Exhibit Line Item Number (ELIN) and required delivery schedule.

(i) For initial spares, the PIO shall obligate sufficient funds to cover the estimated price of the items ordered. The Contractor shall proceed as directed to the extent that the cost incurred in compliance with such order(s) shall not exceed the amount set forth in such orders as the maximum obligation of the Government pending establishment of prices for such items. Standard Form 30 shall be used to effect increases and decreases in quantities of unpriced items including cancellations. Increases and decreases in priced items shall be effected by use of a supplemental agreement issued by the ACO and duly executed by both parties.

(ii) For other than initial spares, the PIO shall obligate funds pursuant to the limitations of DFARS 217.7404-4, Limitation on obligations, based on the not-to-exceed price of the items ordered. The Contractor shall proceed as directed to the extent that the cost incurred in compliance with such order(s) shall not exceed the amount set forth in such orders as the maximum obligation of the Government pending establishment of prices for such items. Standard Form 30 shall be used to effect increases and decreases in quantities of unpriced items including cancellations. Decreases in priced items shall be effected by use of a supplemental agreement issued by the ACO and duly executed by both parties.

(b) Inclusion of a provisioning requirement package:

(1) Initial Provisioning Performance Specification (IPPS), with attachments, if listed in Section J of the contract, is incorporated herein and made a part hereof.

(2) AFMC Form 718, "Provisioning Performance Schedule," if listed in Section J of the contract, is incorporated herein and made a part hereof.

(3) If any of the above documents are not listed in Section J of the contract, the contracting activity shall incorporate those documents by modification within (insert number of days) days after issuance of the contract. Revisions to the above documents shall also be incorporated into the contract by modification upon request by the Prime Provisioning Activity.

(c) Provisioning technical documentation:

(1) The schedule for delivery of provisioning technical documentation is included on the DD Form 1423, Contract Data Requirements List. If a schedule is not provided, it shall be incorporated by modification when available.

(2) Appropriate provisioning technical documentation requirements shall flowdown when a subcontractor prepares the documentation.

(d) Interim release:

(1) The estimated dollar amount, if any, cited in Section B at the end of the provisioning item description is a planning figure and is intended to establish a limitation solely for the interim release provisions of the applicable provisioning document. Decreases in the planning figure for interim release will be by unilateral contractual modification. Subsequent changes effecting an increase of the dollar limitation will be determined by the estimated dollar amount on PIOs.

(2) Contractor interim release of long lead items shall be authorized only by written order from the PPCO. If authorized, the Contractor shall submit appropriate provisioning technical documentation and estimated unit cost(s) within thirty (30) days of the release.

(e) Definitization schedule:

(1) Within sixty (60) calendar days of receipt of a PIO, the Contractor shall submit a firm-fixed-price proposal to the PCO/PPCO (as applicable), through the ACO, containing suitable cost or pricing data as defined within FAR Subpart 15.4, Contract Pricing. Pursuant to FAR 42.3, Contract Administration Office Functions, the ACO shall negotiate firm prices and execute a supplemental agreement to definitize PIOs and deobligate excess funds.

(2) Overage proposals/reduction or suspension of progress payments. Submission by the Contractor of adequate cost proposals, within sixty (60) calendar days from the date of issuance of the PIO, is deemed to be a "material requirement" of the contract within the meaning of the Progress Payment clause of this contract. If the Contractor fails to provide a complete definitive proposal adequate for negotiation within the time stipulated above, the Government may reduce or suspend progress payments pursuant to FAR 52.232-16, Progress Payments, paragraph (c)(1), by following the procedures set forth in FAR 32.503-6, Suspension or reduction of payments.

(3) In the event the Contractor is unable to meet the schedule contained in a PIO prior to definitization, the ACO shall coordinate the delivery schedule adjustment with the PPCO prior to execution of the supplemental agreement definitizing the PIO.

(f) Distribute one complete copy of the PIOs and the resultant definitive modifications to each of the following addressees:

(1) (insert complete PCO mailing address)

(2) (insert complete program manager mailing address)

(3) (insert complete integrated logistics support manager) mailing address)

(4) (insert complete Prime Provisioning Activity (PPA) mailing address)

(End of clause)

5352.217-9010 Associate Contractor Agreements.

As prescribed in 5317.9203(a), include the following clause, substantially as written, in Section I:

ASSOCIATE CONTRACTOR AGREEMENTS (AFMC) (JUL 1997)

(a) The Contractor shall enter into Associate Contractor Agreements (ACA) for any portion of the contract requiring joint participation in the accomplishment of the Government's requirement. The agreements shall include the basis for sharing information, data, technical knowledge, expertise, and/or resources essential to the integration of the (insert name of the program or project) which shall ensure the greatest degree of cooperation for the development of the program to meet the terms of the contract. Associate contractors are listed in (h) below.

5352.235-9000 Small Business Innovation Research (SBIR) Phase I and Phase II

Contract Requirements.

As prescribed in 5335.006(90), insert the following clause, substantially as written, in Section I:

SMALL BUSINESS INNOVATION RESEARCH (SBIR) PHASE I AND

PHASE II CONTRACT REQUIREMENTS (AFMC) (JUL 1997)

The following requirements of the FY (insert year) Department of Defense (DoD) solicitation for the Small Business Innovation Research (SBIR) program are incorporated herein by reference: (insert applicable requirements by paragraph number and title.)

(End of clause)

5352.235-9001 Key Positions and Minimum Qualifications.

As prescribed in 5335.007-90, insert the following clause, substantially as written, in Section I:

KEY POSITIONS AND MINIMUM QUALIFICATIONS

(AFMC) (JUL 1997)

(a) Contractor personnel holding the position titles and having the qualifications listed below are considered essential to the work being performed under this contract:

(b) The Contractor shall notify the Contracting Officer before the departure of any individual in a key position and identify the proposed substitution. Any proposed personnel substitution that does not meet the minimum qualification requirements described above requires the prior written approval of the Contracting Officer.

(End of clause)

5352.235-9002 Definition of Unusually Hazardous Risks.

As prescribed in 5335.070-3(90), include the following clause in Section I:

DEFINITION OF UNUSUALLY HAZARDOUS RISKS (AFMC) (JAN 1998)

For the purpose of the clauses at DFARS 252.235-7000, Indemnification Under 10 USC 2354--Fixed-Price (Dec 1991), and DFARS 252.235-7001, Indemnification Under 10 USC 2354--Cost Reimbursement (Dec 1991), it is agreed that all risks arising out of or resulting from:

(a) The burning, explosion, or detonation of propellants (liquid, solid, or gaseous), their constituent components, or their degradation products during preparation, mixing, storage, or loading;

(b) The burning, explosion, or detonation of liquid fueled rocket engines or solid fueled rocket motors during preparation, casting, storing, testing, transporting, launch preparation, or launch;

(c) The burning, explosion, or detonation of launch vehicles or their components during testing, transporting, preparation, or launch;

(d) The toxic or other unusually hazardous properties of propellants (liquid, solid or gaseous) or inert gases, their constituent ingredients, or their degradation products;

(e) The flight or surface impact of launch vehicles or components or fragments thereof are "unusually hazardous risks" to the extent such risks arise out of performance of this contract.

(End of clause)

(2) Reconditioning: Should the Government exceed the terms of use specified in this solicitation by 25 percent, reconditioning of the equipment, if required, shall be at Government expenses. The charges for such work authorized by the Government shall be at the Contractor's then current standard rates for the same type of service on the same type of equipment which shall be consistent with the rates that the Contractor charges commercial customers for such services. However, the reconditioning shall be at the Contractor's expense in those instances where the terms of use specified in the contract have not been exceeded by 25 percent or where unlimited use was specified in the contract.

(3) Movement of Equipment: In the event the system(s) being maintained under the terms and conditions of this contract is moved to another location within the same geographical service area, as designated by the Contractor, the terms and conditions of this contract shall continue to apply. If the system(s) must be moved outside the Contractor's designated service area, then the continued applicability of this contract shall be subject to mutual agreement.

(i) The Government shall give at least 60 days written notice to the Contractor of its intention to move the equipment, except in emergencies.

(ii) The monthly charges will not be suspended if the dismantling, shipment, and installation of the equipment at the new location is completed within 15 calendar days. The Government shall be charged for disassembly and reassembly at the Contractor's then current standard rates, provided that the Contractor charges commercial customers for such services.

(4) Discontinuance:

(i) The Government reserves the right to discontinue maintenance services by giving the Contractor 30 days prior written notice or a shorter notice when agreed to by the Contractor.

(ii) The Government may extend or cancel the date of discontinuance by submitting a written notice to the Contractor at least 15 days prior to the stipulated discontinuance date.

(k) Non-Chargeable Maintenance Items: There shall be no additional charges for:

(1) Replacement parts, unless such parts are required due to the fault or negligence of the Government.

(2) Preventive maintenance, regardless of when performed.

(3) Remedial maintenance which was requested during the principal period of maintenance and extension thereof specified in the contract, regardless of when the maintenance is performed.

(4) Time spent by maintenance personnel, after arrival at the site, awaiting the arrival of additional maintenance personnel and/or delivery of parts, etc., after a service call has commenced, and such maintenance personnel are not actually performing any maintenance service.

(l) Preventive Maintenance:

(1) Leased Equipment: Preventive maintenance shall be performed during the Government's principal period of maintenance and extension thereof or periods contiguous thereto. The Contractor shall specify in writing the frequency and duration of the preventive maintenance required for the

equipment listed in the schedule. If a mutually agreed upon schedule for preventive maintenance cannot be established, the Government reserves the right to specify the schedule for performance of preventive maintenance, subject to the time constraints above.

(2) Purchased Equipment: The Contractor shall specify in writing the frequency, duration and quality of preventive maintenance. The quality shall be comparable to that provided by the Contractor for identical leased equipment. The schedule for preventive maintenance shall be established in accordance with the provisions above.

(End of clause)

5352.239-9004 Task Change Proposals (IT Resources).

As prescribed in 5339.107-90(e), insert the following clause, substantially as written, in Section I:

TASK CHANGE PROPOSALS (IT RESOURCES) (AFMC) (AUG 1998)

(a) The Contracting Officer may at any time, in writing, request the Contractor to prepare and submit a Task Change Proposal (TCP) per data line item (insert TCP CDRL number) of the CDRL.

(b) Any Contractor TCP shall set forth a "not to exceed" price and delivery adjustment or a "not less than" price and delivery adjustment. If ordered, the equitable increase shall not exceed, nor shall the equitable decrease be less than, the "not to exceed" or "not less than" amounts. At the time of agreement upon the price of the TCP, the Contractor shall submit a signed Certificate of Current Cost or Pricing Data if cost or pricing data is required.

(c) The TCP shall be submitted within 30 days after receipt of the written request.

(d) The Contractor shall not proceed with changed tasks until or unless such changes are contractually incorporated pursuant to the "Changes" clause of the contract.

(End of clause)

5352.247-9015 Temporary Storage of FMS Munitions Items.

As prescribed in 5347.305-10(b)(94), insert the following clause in Section F:

TEMPORARY STORAGE OF FMS MUNITIONS ITEMS

(AFMC) (JUL 1997)

The Contracting Officer may authorize the Contractor to ship in place, store in a bonded storage area, and upon submission of proper invoice or DD Form 250, Material Inspection and Receiving Report, receive payment for units shipped when the clear text shipping address and transportation instructions are not available at the time that deliveries are accepted by the U.S. Government on behalf of the FMS customer. The requirement for "Evidence of Shipment" shall be postponed until after receipt of the clear text shipping instructions. The Contractor shall store and safeguard the units in bonded storage at no change in contract price while waiting for shipping instructions.

(End of clause)

5352.247-9016 Reserved.

5352.247-9017 F.o.b. Point for Delivery of Government-Furnished

Property.

As prescribed in 5347.305-12(a)(90), insert the following clause in Section F:

F.O.B. POINT FOR DELIVERY OF

GOVERNMENT-FURNISHED PROPERTY (AFMC) (JUL 1997)

The f.o.b. point for delivery of Government-furnished property, as defined in FAR 52.247-55, F.o.b. Point for Delivery of Government-Furnished Property, shall be:

(a) (insert CONUS and Canadian Contractors).

(b) (insert overseas Contractors).

(End of clause)

5352.290-9000 Delay and Standby Time.

As prescribed in 5390.9000(a)(1), insert the following clause, substantially as written, in Section I:

DELAY AND STANDBY TIME (AFMC) (JUL 1997)

F.o.b. Destination--Tank Trucks and Trailers:

No payment shall be made by the Government for delays or standby to the Contractor's trailers or tank trucks incident to the operation or off-loading at using activities except when such delays exceed (insert number of hours) hours from arrival at using activity to departure from using activity and such delays are directly attributable to action or nonaction of the Government or its agents. For delays which meet this criteria, the Contractor shall be reimbursed (insert amount) per quarter hour or fraction thereof. The delay time shall start at the place of entry to the using activity where verification may be made by operating personnel. In the event the using activity is not working on a twenty-four (24) hour basis, the normal time of delivery will be between (insert hour) a.m. and (insert hour) p.m. Monday through Friday. The Contractor is obligated to schedule deliveries so that trucks will arrive at using activity between the specified hours. Unless otherwise specified in the delivery schedule, the delay and standby time will be between the hours stated. When vehicles are held at the convenience of the Government, payment will be made for actual hours delayed. All charges to the Government under this clause shall be submitted within thirty (30) days of date(s) demurrage was incurred. A separate invoice with supporting information is required. The invoice will be forwarded to (insert address) for certification prior to effecting payment.

(End of clause)

PART 5353--FORMS

SUBPART 5353.1--GENERAL

5353.190 Computer preparation.

Activities using the Acquisition Management Information System (AMIS) shall use the AFMC 700-series computer adapted forms or automated equivalents where appropriate as specified in the AMIS Source Data Automation (SDA) Manual,

AMFCM 70-390.

SUBPART 5353.2--PRESCRIPTION OF FORMS

5353.204 Administrative matters.

5353.204-70 DD Form 350, Individual Contracting Action Report.

Insert in the Report Control Symbol block: DD-ACQ(M)1014.

(a) Part A of DD Form 350.

(1) Block A1, Type of Report. Correcting and cancelling reports cannot be input for actions reported in a previous fiscal year.

(iii) Code 2 - Correcting Report. If the correction to be made will result in a blank in a block which previously had an entry, the report must be cancelled and a new "original" report submitted with the correct data.

(4) Block A4, Name of Contracting Office. As a minimum, AFMC activities will use the activity and office symbol. Example: Operational Contracting at Robins AFB GA, would be "WR-ALC/PKO."

(b) Part B of DD Form 350.

(1)(i) Block B1A, Contract Number. For Section 8(a) awards to the Small Business Administration (SBA), use your contract number with SBA; do not report the number between SBA and the contractor.

(3)(i) Block B3, Action Date. Date must be within current fiscal year (FY) and match the effective (distribution or mailing) date of the award, whether or not the form is actually submitted on the same date. When preparing reports for administrative contracting officer issued modifications or orders, use the actual date of obligation or deobligation if it is within the same fiscal year. If action date was before the beginning of the current fiscal year, but the report was not received at the buying activity for reporting purposes until after the previous FY was closed out, enter the date the DD Form 350 is completed.

(4)(i) Block B4, Completion Date. For contract close-out actions and any others where final delivery occurred in a preceding fiscal year, enter date of current action rather than date of last delivery.

(5)(ii)(H) Block B5H Parent Name. Enter only if contractor provided in response to FAR 52.204-3; "parent" relationship covered by FAR 52.204-8 is not the same.

Identical numbers may be entered in Items B5F and B5G if contractor certified the same number for itself and its parent.

(d) Part D of DD Form 350.

(5)(viii) Block D8, Subcontracting Plan for SB, SDB or HBCU/MI. If reporting a modification or order for which no new subcontracting plan was required, but for which coverage exists in an existing plan, use Code C or D, as applicable. Enter Code D, Plan Required, Incentive Included, whenever DFARS 252.219-7005 is in the award, whether or not Alternate I is specified.

(90) Coding Subsequent Actions. Subsequent orders will generally be coded the same as the first order. Provisioning orders will be coded the same as the document authorizing the provisioning. Contract modifications will be coded the same as the original award, except for the following items: A2 Report Number, B2 Mod Order or Other ID Number, B3 Action Date, B7 Type Obligation, B8 Total Dollars, B11 Total Multiyear Value and B13 Kind of Contracting Action. To determine if previous coding is still applicable, each form must be reviewed for compliance with current policies and procedures.

5353.290 AFMC forms.

The forms prescribed by this AFMCFARS are listed in numerical order, with title and corresponding AFMC FAR Supplement paragraph reference. All MAJCOM forms are authorized for computer generation.

APPENDIX AA--FORMAL SOURCE SELECTION FOR MAJOR ACQUISITIONS

PART 1 - GENERAL INFORMATION

AA-103 Definitions.

"Life Cycle Cost" means the total cost to the Government for a system over its full life including the cost of development, acquisition, operation, sustainment, and disposal.

"Most Probable Cost (MPC)" means the Government estimate of the total cost most likely to be incurred if a contract is awarded. In addition to specific contract acquisition cost, this estimate should include any other Government cost expected to be incurred. Some examples include Government furnished property, Government furnished facilities, or cost of transportation. MPC is most frequently used to evaluate cost in cost reimbursement and other flexibly priced contracts.

"Performance Risk Assessment Group (PRAG)" See AFMC Pamphlet 64-113, Volume I, 19 Mar 98, Source Selection Activities Guide (Performance Risk Assessment Group (PRAG) Guide) (http://www.afmc.wpafb.af.mil/pdl/afmc/pam/64series/ 64_113v1/64-113v1.pdf).

AA-104 Policies.

AA-104(e) See 5307.104-90(a) and 5307.104-91(e)(90).

AA-104(i) When making a contract award based on initial proposals without written or oral discussions, final proposal revisions are not requested; however, the solicitation must address the possibility of award with or without discussions.

AA-106 Organization.

See Attachment AA-1 for typical PRAG placement within the source selection organization. The PRAG is a separate entity that normally reports to the SSA or SSAC Chairperson, but may report to the SSEB chairperson on an exception basis, as determined by the SSA or SSAC Chairperson. Determine the appropriate membership and structure of the PRAG relative to the size, nature, and complexity of the specific acquisition. The PRAG should consist of experienced acquisition personnel. PRAG members should be at a high enough rank or grade to interface effectively with Program Managers, contracting officers, and representatives of other agencies. The PRAG is responsible for conducting performance risk assessments. When PRAG members are also factor chiefs, the performance risk assessments must be accomplished separately from other responsibilities. Whenever possible, however, the

PRAG chairperson should not be assigned other source selection duties. PRAG personnel must be Government employees.

AA-107 Responsibilities and duties.

AA-107(90) PRAG responsibilities and duties include the following:

(1) Conducting an in-depth review and evaluation of performance data provided by offerors and obtained from other sources to determine how closely the present and past performance relates to the evaluation areas and factors and subfactors being assessed, including price/cost.

(2) Assessing performance risk with respect to cost or price and specific criteria.

(3) Generating Evaluation Notices (ENs) is necessary, to address adverse past performance information where the offeror has not previously had an opportunity to comment.

(4) Preparing the performance risk assessment portion of the Proposal Analysis Report (PAR). The PRAG chairperson will normally brief the PRAG evaluation results to the SSAC and SSA.

(5) Providing consultations on performance risk assessments, as required by the SSA or SSAC.

AA-116-90 Streamlining.

Use the following streamlining techniques:

(a) Set challenging goals for all source selection schedules. The SSA approves source selection schedules as part of the SSP. Inform the SSA of significant departures from the approved schedule.

(b) Keep the number of SSEB members and advisors to a minimum to avoid inefficiency. Qualified members may evaluate a number of factors, or subfactors.

(c) Limit the number of specific evaluation criteria to a maximum of 10 factors and subfactors unless a higher number is approved by the SSA through approval of the SSP. Guidance and a template for the preparation of the SSP may be accessed through the World Wide Web, address: http://www.afmc.wpafb.af.mil/organizations/HQ-AFMC/PK/pkopr1.htm#list19. Use of an excessive number of subfactors is highly discouraged. Elements may be used on major acquisitions, but they are rarely necessary. If subfactors or elements are used, each subfactor or element counts as one in determining the specific evaluation criteria factor limitation. Develop meaningful evaluation standards at the lowest level evaluated.

(d) Reduce the size of solicitations and proposals.

(1) Strive to ensure the solicitation reflects only the essential requirements. This can be done by giving offerors clear and concise instructions for proposal preparation, tailoring statements of objectives, statements of work and specifications, eliminating unnecessary data requirements, and eliminating the request for and submission of data and information which is not germane to the selection and contract award process.

(2) Limit the size of proposals. Excessively sized solicitations and proposals are costly to the offerors and unnecessarily time-consuming to evaluate. Technical (including logistics, manufacturing, and all other separate volumes) and management volumes shall not exceed a combined total of 200 pages (including any attachments or appendices), unless the SSA approves a higher page limit before solicitation release. The solicitation must state that the evaluators will read only up to the maximum number of pages specified. Remove pages in excess of the maximum number from the back of the proposal and return them to the offeror as soon as practicable so that they are not evaluated. Since page and format limitations can be subject to abuse and arbitrary limitations (for example, resulting in an unacceptable proposal based on page count which includes the cover sheet and table of contents where omitting these pages from the count results in the proposal's acceptability), legal advice should be obtained before rejecting a proposal exceeding page or format limitations. If cost or pricing data are requested from offerors, the cost or price volume may not be limited; however, establish a goal of 100 pages. To comply with 10 U.S.C. 2306(a), as implemented in FAR 15.4, offerors may need to exceed this goal for the cost or price volume. Clearly identify in the cost or price proposal preparation instructions the data required within the cost or price volume 100 page goal. Allow the offeror to include all other cost or pricing data necessary to comply with public law in an unlimited appendix to the cost or price volume. When "information other than cost or pricing data" is required, ordinarily establish a 100 page limitation. Do not place an overall page limitation on the past and present performance volume. Rather, limit to two the number of pages that an offeror may submit for each instance of performance experience reported. You also may wish to limit the number of instances of performance experience which an offeror may report. Place page limits on all other proposal volumes whenever possible, and goals when page limits cannot be applied. The amount of information offerors are required to submit must be consistent with the page limits and goals established.

(3) Limit the number of pages for responses to ENs. The solicitation must state that limits will be set on responses to ENs. Such limits, which should be the same for all offerors, will preclude offerors submitting major proposal revisions under the guise of responding to ENs. Identify reasonable page limits in the letter transmitting the ENs to the offeror. These limits, however, must not impact the requirement to conduct meaningful exchanges.

(4) State page format restrictions (for example, margins, type size, foldouts, photo reduction, and spacing) in the proposal preparation instructions to allow for a common baseline for proposals and responses to ENs.

(e) Request that offerors submit proposals, including information other than cost or pricing data, using electronic data interchange (EDI) where possible and practical, in addition to the original paper copy. For Official Use Only (FOUO), export controlled and contractor proprietary information may not be transmitted over unsecure internet lines. However, special steps can be taken to increase required security and meet the requirements of FIPS 140-1. Example: create an intranet or limited access web page using NISI approved software.

(f) Reduce the amount of audit and field pricing support. Carefully determine the need for audit and field pricing support for prime and subcontractors (see FAR 15.4).

AA-204 Basis of award, evaluation criteria, and general considerations.

AA-204(b)(90) Present and past performance shall not be evaluated as an assessment criterion or as a general consideration, nor as a separate factor or subfactor within the specific criteria. Present and past performance are both evaluated to assess performance risk.

AA-204(e) Present and past performance shall be evaluated as a structured risk assessment as detailed in paragraph AA-305(g).

AA-205 Source Selection Plan (SSP).

AA-205(b)(2) Identify to whom the PRAG will report (SSA or SSAC or SSEB Chairperson).

AA-205(b)(4) Specify the performance risk evaluation methodology. If adequate price competition is anticipated, identify the methodology to be followed to evaluate the cost realism (see DFARS 215.404-1(d)), completeness, and reasonableness.

AA-206 Evaluation standards.

AA-206(d) See 5315.204-5(c)(90).

AA-207 Solicitation.

AA-207(1) Section M of the solicitation, Evaluation Factors for Award, must clearly state that the Government will conduct a performance risk assessment based on the offeror's present and past performance as it relates to the probability of successfully accomplishing the proposed effort. Offerors must be notified of all factors, and subfactors for which the Government will collect data and focus its evaluation. Section M must also notify offerors that both independent data and data provided in their proposal will be used to assess performance risk. Section M, as approved in the SSP, shall include the following information:

(90) The color/adjectival rating, proposal risk assessment, and performance risk assessment are all significant in the source selection evaluation. Any one of these evaluation aspects can, and often does, influence the SSA's integrated assessment and decision. For this reason, the solicitation must convey to offerors that the performance and proposal risk assessments are neither more nor less significant than the color/adjectival rating itself.

(91) An indication that cost or price will be a substantial evaluation criterion, and whether adequate price competition is anticipated, when discussing the relative order of importance of all criteria.

(92) A description of the general considerations and how they are ranked relative to the specific criteria and cost criterion.

AA-207(90) The proposal preparation instructions (Section L) of the solicitation shall:

(1) Request that offerors submit a separate past and present performance proposal volume which summarizes prior contract efforts they consider relevant to each factor or subfactor to demonstrate their ability to perform the proposed effort.

(2) Specify the type of cost or price information required to be included in the cost proposal to evaluate cost realism, completeness, and reasonableness. Use AFMCFARS provision 5352.215-9014 to notify offerors that cost or pricing data and a Certificate of Current Cost or Pricing Data may be requested if adequate price competition is not achieved.

(3) Instruct offerors on form, format and other parameters of their cost or price proposal submission. The instructions should include but not be limited to: type of electronic or magnetic medium; software program (for example, Microsoft Excel and Microsoft Access); hardware compatibility; disk name, file name, and brief description; and cross-reference to hard copy (volume and page number).

AA-208 Notice of source selection action.

Only issue a Notice of Source Selection Action upon release of the formal solicitation. Do not send a notice when issuing a draft RFP (DRFP). Include HQ AFMC/PKP as an addressee on every Notice of Source Selection Action.

PART 3 - PROPOSAL EVALUATION AND SOURCE SELECTION DECISION

AA-302 Offerors' oral presentations.

AA-302(a) The SSEB chairperson should recommend, when developing the SSP and solicitation, whether oral presentations to the SSEB should be conducted.

AA-302(90) If oral presentations are deemed appropriate:

(1) Oral presentations are best applied to evaluations of management, corporate capabilities, personnel qualifications, facilities, processes, descriptions of commercial items and other categories of information having to do with an offeror's capabilities to perform the required work. Solutions to scenarios representative of efforts to be performed are also appropriate for oral presentations. However, if award without discussions is contemplated, oral presentations must be conducted with extreme caution on the part of the Government evaluation team. The team must limit its questions to clarifications (see FAR 15.306(a)) only to be able to award without discussions. If the Government asks questions which may be construed as communications or discussions, a competitive range has been unintentionally established which includes all offerors; as a result, discussions have been opened and must be conducted with all offerors.

(2) Planning for use of oral presentations must include determining how the oral presentation and evaluation results are to be integrated into the overall evaluation for consideration by the source selection authority. The preferred method of recording oral presentations is on electronic medium, however, written documentation is acceptable.

(3) Oral presentations may constitute all or only a portion of the non-cost/price part of the proposal.

AA-305 Assessment of risk.

AA-305(g)(90) Data on the offeror's performance (including that of major subcontractors or teaming contractors) may be obtained from a variety of sources. Where applicable, get program and contract information in the AFMC Contractor Performance Assessment Report (CPAR) system from the closest CPAR focal point. Information on programs and contracts outside the CPAR system and information on contractors not within the CPAR data base may be obtained from questionnaires or interviews, or other past performance assessment systems established by contracting

activities outside AFMC. Normally when a CPAR is available, a questionnaire would not be needed. Tailor questionnaires or interviews to focus on information that demonstrates performance related to each specific evaluation criterion Preaward Surveys, Contractor Alert Lists, Performance Assessment Reviews, or questionnaires should be used to gather contract administration data from Defense Contract Management Command (DCMC) organizations. Also use local contractor performance data where available. File copies of CPARs, questionnaires, interviews, or other information used by the PRAG to support their performance risk assessments with other source selection records.

(91) Performance evaluations are not limited solely to the proposing prime contractor division. If other divisions, corporate management, critical subcontractors, or teaming contractors perform a critical element or significantly influence the proposed effort, their performance record should be evaluated and risk assessed relative to the appropriate evaluation criteria. All performance risk assessments that include such diverse data must separately identify and document the data.

(92) Evaluate performance data as received so that necessary clarification can be obtained during discussions. However, the depiction of the performance risk assessments (high, moderate, low or not applicable) is normally prepared once and presented as part of the final evaluation and decision briefing to the SSAC and SSA. When award without discussion is contemplated, complete the performance risk assessment before the decision briefing.

(93) Each performance evaluation and risk assessment will consider the number and severity of problems, the effectiveness of corrective actions taken, and the overall work record. Consider also the offeror's demonstrated ability to effectively identify and take actions to abate program risks. The assessment of performance risk should not be a simple arithmetic function of an offeror's performance on a list of contracts; but rather the information deemed most relevant and significant by the PRAG will receive the greatest consideration. Therefore, a contractor could receive acceptable (Green) CPAR ratings and/or favorable responses to questionnaires on all (or most) of their past efforts, but if none (or very few) of those efforts were very relevant or at least relevant to the effort at hand, then the PRAG would be justified in assigning other than a low performance risk. In cost or price the PRAG should give more consideration to efforts for similar end items, efforts during a similar phase of the acquisition cycle, and to efforts with similar contract types.

(94) Assess performance risk, as a minimum, for each factor. Subfactor level assessments may be used if it is reasonable to expect that specific performance data will be readily available which correlates to the factor characteristics. However, even if assessments are only made at the factor level, available performance data should be examined at the subfactor level before being aggregated. A cost or price performance risk assessment is always required, regardless of the proposed contract type. For Firm Fixed-Price (FFP) contracts, focus the analysis on the contractor's cost management

record and program impact caused by a pattern of cost growth due to poor contractor estimates.

AA-306 Exchanges with offerors.

AA-306(a) To ensure compliance with FAR 15.306(e), the SSEB chairperson must review all evaluation notices prior to submittal to the SSAC chairperson for review and approval to release (see AA-107(b)(7)).

AA-311 Conducting written or oral discussions.

AA-311(d)(1) In order to improve the efficiency of transitioning from written/oral discussions to a final proposal revision, revisions to the model contract are to be agreed upon to the maximum extent possible by the offerors and the Government before the Government requests the final proposal revision. To accomplish this, include appropriate instructions in Section L of all solicitations where AFFARS Appendix AA source selection procedures are followed. Prior to the close of the written/or discussion phase, the contract team must review each offeror's response and resolve as much as practicable any disagreements, deficiencies, or omissions regarding the model contract and other documents. After resolution, obtain a clearance using the procedures defined in AFFARS 5301.90, as supplemented, and request a final proposal revision based upon the refined contractual agreement. The final proposal revision request should advise offerors that significant changes to proposals in final proposal revision responses may adversely impact their eligibility for award.

AA-311(90) Written or oral discussions with each offeror in the competitive range must provide the offeror with the opportunity to comment on adverse past and present performance data, and past performance data where relevancy is questionable.

AA-312 The Proposal Analysis Report (PAR) and presentation.

AA-312(b)(4) In both the written evaluation report and the presentation, include discussion of the following PRAG information for each offeror:

(90) Sources and type of performance data gathered. Examples of types of data include percent of award fee earned, delivery rates, program specific data, test results, or cost performance data;

(91) Relevancy and significance of the data. Describe the methodology used by the PRAG to determine the relevancy of a past or present contract effort.

Describe those efforts considered most relevant and provide the rationale supporting their relevance.

(92) Performance risk assessments and supporting rationale. Cite specific examples, trend analyses, and overall judgments in support of each performance risk assessment (high, moderate, low, or not applicable).

AA-315 Selection and Contract Award.

AA-315(b)(90) The rationale for not conducting discussions whenever award without discussion occurs.

AA-315(b)(91) When award is made to an offeror with a good demonstrated performance record, include the supporting rationale for the selection.

APPENDIX BB--SOURCE SELECTION PROCEDURES FOR OTHER THAN MAJOR ACQUISITIONS

PART 1 - GENERAL INFORMATION

BB-101 Applicability.

(90) AFMC centers may tailor this process for their own organizational application and for acquisitions less than $5 million (i.e., total program value or total contract value). Recommend use of Appendix BB procedures for base-level service acquisitions and construction. Do not normally use Appendix BB procedures for the acquisition of replenishment spares or repair parts. Guidance and a template for the preparation of the Source Selection Plan (SSP) and Sections L & M of the solicitation may be accessed through the World Wide Web, address: http://www.afmc.wpafb.af.mil/

organizations/HQ-AFMC/PK/pkopr1.htm#list19 (then go to source selection tile). Part 5-90 of this Appendix applies to all science and technology (i.e., research, exploratory development, and advanced development) source selections. Part 5-90 may be applied to manufacturing technology efforts. Part 6-90 applies in cases where the Lowest Evaluated Price (LEP) technique is approved for use.

BB-103 Definitions.

BB-103(90) "Performance Risk Assessment Group (PRAG)" See AFMC Pamphlet 64-113, Volume I, 9 Jun 95, Source Selection Activities Guide (Performance Risk Assessment Group (PRAG) Guide http://www.afmc.wpafb.af.mil/pdl/afmc/pam/

64series/64_113v1/64-113v1.pdf).

"Acquisition Plan (AP)" The Single Acquisition Management Plan (SAMP) may be used in place of the AP.

"Assessment Criteria" Assessment criteria are optional for use.

"General Consideration" Offeror-proposed alternatives to the military and/or federal specifications and standards cited as compliance documents in the solicitation may also be appropriate for evaluation as a general consideration, since these alternatives are not likely to impact the overall technical solution to such an extent as to warrant consideration as a separate factor or subfactor.

"Minimum Mandatory Requirement" Minimum mandatory requirements (MMRs) are distinguished from essential characteristics or baseline requirements of the solicitation in that MMRs reflect only acceptability/nonacceptability of the offeror's proposed response, and are not intended to measure qualitative or quantitative differences relative to the evaluation standards. For this reason, MMRs do not employ the entire color rating scheme, but instead reflect only a "green/red" color scheme. This is

discussed in more detail in BB-304, Use of Rating Techniques. If MMRs are used, an offeror not meeting the MMRs may be excluded from the competitive range without evaluation of that offeror's response to the essential characteristics or baseline requirements of the solicitation, but that offeror's cost or price proposal must still be considered in the determination to exclude, as required by FAR 15.306(c).

BB-104 Policies.

BB-104(e) See 5307.104-90(a), 5307.104-91(e)(90), and 5315.201(f).

BB-104(f) Use color rating for factors and subfactors unless approval has been obtained to use the LEP techniques contained in Part 6-90 of this appendix.

BB-104(h) Additionally, if the offeror's failure to meet an essential characteristic or baseline requirement reflects a failure to meet an evaluation standard, the offeror's proposal is deficient for that standard, and must receive less than a green (acceptable) rating.

BB-104(90) Use of a Performance Risk Assessment Group (PRAG) is optional for science and technology, base service, and construction source selections conducted under this regulation. However, for these acquisitions or for competitive negotiated acquisitions valued less than $5 million but exceeding $1 million, it is required that some evaluation of past performance be undertaken. All other source selections conducted under this regulation must include a PRAG and the resulting performance risk assessment.

BB-105 Source Selection Authority (SSA).

(90) For source selections utilizing the LEP technique contained in Part 6-90, the Contracting Officer is the SSA.

BB-106 Organizations.

(90) The PRAG will be a separate group within the SSET (see Attachment BB-1 for a diagram of typical PRAG placement within the source selection organization).

BB-107 Responsibilities and duties.

BB-107(90) PRAG responsibilities and duties include the following:

(1) Conducting an in-depth review and evaluation of performance data provided by offerors and obtained from other sources to determine how closely the work performed relates to the evaluation factors and subfactors being assessed, including price/cost.

(2) Generating ENs to address adverse past performance information where the offeror has not previously had an opportunity to comment.

(3) Preparing appropriate documentation of PRAG analysis as part of the SSET Proposal Analysis Report.

(4) Providing consultations on performance risk assessments, as required by the SSA.

PART 2 - PRE-EVALUATION ACTIVITIES

BB-203 Basis of award, evaluation criteria, and general considerations.

BB-203(a)(90) Section M, Evaluation Factors for Award, of the solicitation must clearly state that the Government will conduct a performance risk assessment based on the offeror's present and past performance as it relates to the probability of successfully accomplishing the proposed effort. Offerors must be notified of all factors and subfactors for which the Government will collect data and focus its evaluation. Section M must also notify offerors that both independent data and data provided in their proposal will be used to assess performance risk.

BB-203 (b)(1) The evaluation criteria must indicate if adequate price competition is anticipated when discussing the relative order of importance of all criteria.

.

BB-203(b)(3) If assessment criteria are used, they must be described in Section M of the solicitation.

BB-203(c) Present and past performance will not be evaluated as a general consideration.

BB-204 Source Selection Plan (SSP).

BB-204(c) The plan may be tailored and may not include all the items listed.

BB-204(c)(2) Describe the proposed PRAG organization. List recommended key members by name, if known, or by position, title, or functional area. Describe to whom they report.

BB-204(c)(4) Specify performance risk methodology. If adequate price competition is anticipated, identify the methodology to be followed and data required for evaluating the cost realism (see DFARS 215.504-1(b)), completeness, and reasonableness.

BB-204(c)(7) The SSA approves source selection schedules as part of the SSP. Inform the SSA of significant departures from the approved schedule.

BB-205 Evaluation standards.

BB-205(b) Any solution proposed by an offeror which fails to meet the evaluation standard is deficient to that standard, and requires that the offeror's color rating be less than green (acceptable). It may require that an Evaluation Notice (EN) be issued if the Government is not certain a deficiency exists. If and when a competitive range determination has been made, EN(s) should be used to identify deficiencies.

BB-205(d) See 5315.204-5(c)(90).

BB-206 Solicitation.

BB-206(3) Present and past performance will be evaluated as a structured risk assessment.

BB-206(4) The proposal preparation instructions (Section L) of the solicitation must include the following information:

(90) If performance risk is being assessed, request offerors submit a separate proposal volume that summarizes prior contract efforts they consider relevant to each factor or subfactor of the evaluation criteria to demonstrate their ability to perform the proposed effort.

(91) Specify the type of cost or price information needed to be included in the cost proposal to evaluate cost realism (as defined in DFARS 215.404-1(d)), completeness, and reasonableness. Use AFMCFARS provision 5352.215-9014 to notify offerors that cost or pricing data and a Certificate of Current Cost or Pricing Data may be requested if adequate price competition is not achieved.

(92) Request submission of cost proposal information and updates on magnetic media (floppy disk) or electronically when feasible. As a minimum, request one hard copy as a backup. Instruct offerors on form, format and other parameters of their cost proposal submission. The instructions should address: Type of electronic or magnetic medium (for example 3.5" high density disk); software program (for example, Microsoft Excel); hardware compatibility; disk name, file name, and brief description; and cross-reference to hard copy (volume and page number).

(93) Limit the size of proposals. Technical (including logistics and manufacturing if applicable) and management volumes must not exceed a total of 200 pages (including any attachments or appendices), unless there is SSA approval before solicitation release. The solicitation must state that the evaluators will read only up to the maximum number of pages specified. Pages in excess of the maximum are to be removed from the back of the proposal and returned to ensure they are not evaluated. The cost volume, although not limited to a maximum number of pages, should have a 100-page goal that may be exceeded as necessary. Cost proposal preparation

instructions should clearly identify the data required in the cost volume and allow an unlimited appendix for the data required for the offeror to comply with public law.

(i) The solicitation must state that limits are set on responses to ENs. Identify page limits in the letter transmitting the ENs to offerors.

(ii) State page format restrictions (for example, margins, type size, foldouts, photo reduction, and spacing) in the proposal preparation instructions to allow for a common baseline for initial proposals, responses to ENs, and final proposal revisions.

PART 3 - PROPOSAL EVALUATION AND SOURCE SELECTION DECISION

BB-302 Offerors' oral presentations.

BB-302(b)(90) Oral presentations are best applied to evaluations of management, corporate capabilities, personnel qualifications, facilities, processes, descriptions of commercial items and other categories of information having to do with an offer's capabilities to perform the required work. Solutions to scenarios representative of efforts to be performed are also appropriate for oral presentations. However, if award without discussions is contemplated, oral presentations must be conducted with extreme caution on the part of the Government evaluation team. The team must limit its questions to clarifications only to be able to award without discussions. If the Government asks questions which may be construed as negotiations (i.e., discussions) which would require the Government to accept a revision or modification to any part of the offeror's proposal, discussions have been opened and must be conducted with all offerors.

(91) Planning for use of oral presentations must include determining how the oral presentation and evaluation results are to be integrated into the overall evaluation for consideration by the source selection authority. The preferred method of recording oral presentations is on electronic medium, however, written documentation is acceptable.

(92) Oral presentations may constitute all or only a portion of the non-cost/price part of the proposal. Written cost or price proposals shall always be obtained.

BB-304 Use of rating techniques.

BB-304(i) If the technical team determines that an offeror has not met the MMRs, the SSA may approve a decision by the contracting officer to exclude that offeror from the competitive range in accordance with FAR 15.306(c). Note that this determination must still take into account the cost or price proposal of the offeror. The offeror must be notified at the earliest practicable time that its proposal is no longer eligible for award.

BB-305 Assessment of risk.

BB-305(90) Performance risk assessments are conducted by the PRAG. The PRAG consists of Government personnel who have broad acquisition experience. Each AFMC field activity is responsible for determining the appropriate membership and structure of the PRAG, relative to the size, nature, and complexity of the acquisition. Data on the offeror's performance (including that of major subcontractors or teaming contractors) may be obtained from a variety of sources. Where applicable, get program and contract information in the AFMC Contractor Performance Assessment Report (CPAR) System from the field activity CPAR focal point. Copies of CPARs used by the PRAG to support their ratings are to be filed with other source selection records. Information on programs and contracts outside the CPAR system and information on contractors not within the CPAR data base may be obtained from questionnaires or interviews, or other past performance assessment systems established by contracting activities outside AFMC. Tailor questionnaires or interviews to focus on information that demonstrates performance related to each specific evaluation criterion. Preaward Surveys, Contractor Alert Lists, Performance Assessment Reviews, or questionnaires should be used to gather contract administration data from DCMC organizations. Also use local contractor performance data where available.

(1) Performance evaluations are not limited solely to the proposing prime contractor division. If other divisions, corporate management, critical subcontractors, or teaming contractors perform a critical element or significantly influence the proposed effort, their performance record should be evaluated and risk assessed relative to the appropriate evaluation criteria. All performance risk assessments that include such diverse data must separately identify and document the data.

(2) Evaluate performance data as received so that necessary clarifications can be obtained during exchanges. However, the depiction of the performance risk assessments (high, moderate, low or not applicable) is prepared, updated , and presented as part of the evaluation and decision briefing to the SSA. When award without discussions is contemplated, plan for completion of the performance risk analysis prior to the decision briefing.

BB-306 Exchanges with offerors.

BB-306(a) To ensure compliance with FAR 15.306(e), the SSET chairperson must review and approve (AFFARS Appendix BB-107(b)(10)) all evaluation notices before the contracting officer provides them to the offerors.

BB-308 Cost (price) evaluation.

BB-308(a)(90) Carefully analyze the need for audit and field pricing support for both prime contractors and subcontractors (see FAR 15.404-2).

BB-310 Determination of competitive range.

BB-310(e) Obtain legal review of a competitive range determination to eliminate an offeror before seeking SSA approval. Additionally, obtain legal review of contractor elimination notification letters before their release.

BB-310(90) Award without discussion may be made whenever the requirements of law and regulation are met and it is in the Government's best interest. Discussions will be necessary when the highest rated proposal has deficiencies that are connected with a material requirement of the solicitation. Clarifications as described in FAR 15.306(a), will have no impact in determining whether an award without discussions is possible since these exchanges do not constitute discussions. However, if oral presentations are anticipated, see caution in FAR 15.102(g). In addition to requirements described in FAR 15.306(a), the following must also take place in order to make an award without discussions:

(1) Verify that discussions are unnecessary, i.e., the offeror's initial proposal selected for award demonstrates an understanding of the requirements, and does not deviate from any material requirement of the solicitation.

(2) If potential ENs are generated by the evaluation teams, award without discussions may only be made after the SSA has determined that the ENs identified do not constitute a failure to meet the solicitation's minimum requirements. Award without discussions in the face of identified ENs should occur only when all ENs so identified will not make discussions necessary.

BB-312 The Proposal Analysis Report and presentation.

BB-312(a) The PRAG will prepare a written report and presentation to document the results of their analysis.

BB-312(b)(90) PRAG reports shall be included in the PAR. The report must include a discussion of the following for each offeror. The PAR may be tailored and may not include all the items listed:

(i) Sources and type of performance data gathered. Examples of types of data include percent of award fee earned, delivery rates, program specific data, test results or cost performance data.

(ii) Relevance and significance of the data. Describe the methodology used by the PRAG to determine the relevance of a past or present contract effort.

Describe those efforts considered most relevant and provide the rationale supporting their relevance.

(iii) Performance risk assessments and supporting rationale for each. Cite specific examples, trend analyses, and overall judgments in support of each performance risk assessment (high, moderate, low, or not applicable).

BB-314 Selection and contract award.

BB-314(b) When award is made to an offeror with a good, demonstrated performance record, the SSDD shall reflect that fact in its supporting rationale for the selection. Whenever award without discussions in the face of identified ENs occurs, the SSDD must include the rationale for not conducting discussions.

PART 4 - SOURCE SELECTION DOCUMENTATION AND RELEASE OF INFORMATION

BB-402 Source selection records.

BB-402(a)(17) Includes CPARs.

PART 5-90 TAILORED POLICIES AND PROCEDURES FOR SOURCE SELECTIONS FOR SCIENCE AND TECHNOLOGY

BB-501 Applicability and scope.

(a) This section provides tailored policies and procedures for source selection in competitively negotiated science and technology (S&T) acquisitions which fall outside the scope of AFFARS Appendix AA. This Part 5-90 gives supplementary guidance unique to S&T source selections and modifies certain AFFARS Appendix BB procedures. However, it is not a stand-alone section. Requirements of AFFARS Appendix BB or this supplement which are not addressed or tailored in this Part 5-90 are still applicable to S&T acquisitions.

(b) In some S&T competitive situations, general solicitation procedures (Broad Agency Announcement (BAA) or Program Research and Development Announcement (PRDA)) are more appropriate than source selection procedures. Since the use of BAAs and PRDAs has been demonstrated to streamline the acquisition of S&T, encourage their use whenever appropriate. See FAR 35.016, as supplemented, for guidance on BAAs, and AFMCFARS 5335.90 for guidance on PRDAs.

BB-502 S&T source selection objective.

The objective of the S&T Source Selection Process is to select the source whose proposal has the highest scientific and technical value, and which provides the best mix of performance, cost or price, schedule, and other factors.

BB-503 Source selection plan.

A formal source selection plan is not required for S&T source selections. However, when no formal plan is prepared, all information required by AFFARS Appendix BB must be addressed and documented in the acquisition plan, or other file documentation. In addition, before the solicitation is released, the SSA must approve the evaluation criteria, the relative importance of all evaluation criteria, and the rating system to be used in evaluating proposals.

BB-504 Evaluation team.

A formal SSET is not required for S&T source selections. As a minimum, there will be a technical team and a contract team, each with a designated team chief. Use of a PRAG is optional.

(a) The technical team will include at least two evaluators chosen by the team chief. The technical team chief shall be the senior official responsible for the technical program designated by the requiring activity.

(b) The contract team chief shall be the Contracting Officer.

BB-505 Evaluation team responsibilities.

The responsibilities of the Technical and Contract Teams are as follows:

(a) The technical team will establish the basis for award, develop evaluation criteria, establish the relative order of the criteria, and then give this information to the contract team for inclusion in the solicitation. After receiving the proposals, the technical team will conduct an evaluation according to the evaluation criteria in the solicitation and prepare a technical evaluation report documenting the results. The technical report will indicate any proposal deficiencies or issues that need to be resolved. The technical team need not prepare formal written ENs; however, those proposal deficiencies or issues that require resolution must be documented for the contract file and addressed during discussions with offerors (see FAR 15.306).

(b) The contract team will coordinate the preparation of the solicitation, develop the model contract, conduct the pre-proposal briefings, establish procedures to protect contractor proposal information and Government source selection data, conduct

discussions, determine contractor responsibility, and debrief offerors. The Contracting Officer will make competitive range determinations and award the contract.

BB-506 Source lists.

FAR 35.004 provides guidance on identifying qualified R&D sources. FAR 35.007(a) and (b) allow Contracting Officers to initially limit distribution of solicitations to sources known to be technically qualified. Subsequent requests for the solicitation, however, must be handled according to AFFARS Appendix BB and FAR 5.102.

BB-507 Solicitations.

Solicitations will be prepared as follows:

(a) Executive summary letters are optional.

(b) Formal notifications of a source selection in progress according to AFFARS Appendix BB are not required.

BB-508 Evaluation criteria and standards.

Development of evaluation criteria and standards will be accomplished as follows:

(a) Use of standards is optional. For many S&T efforts, a minimum acceptable level of compliance with a requirement cannot be identified or developed into a qualitative or quantitative standard. When a standard cannot be developed, assessment criteria should be used to determine proposal acceptability and technical merit.

(b) Assessment criteria for S&T efforts may include:

(1) Understanding the problem.

(2) Soundness of approach.

(3) Compliance with requirements.

(4) Novel approach.

(5) Availability of necessary equipment and facilities.

(6) Management capability.

(7) Experience and qualifications.

BB-509 Proposal evaluation.

Technical evaluations will be conducted as follows:

(a) Before the competitive range determination, the technical team must prepare a written evaluation report that documents the results of the proposal evaluations. The following must be included:

(1) Assignment of ratings. The technical proposal must be rated against each assessment criterion. Either a color or adjectival rating scheme is acceptable (see paragraph BB-513 below). Numerical scoring will not be used. Include a narrative evaluation of each proposal that details the strengths and weaknesses of each technical proposal versus each criterion. At the discretion of the technical team chief, an overall rating for the entire technical proposal may be included.

(2) An assessment of the reasonableness of the proposed labor hours and skill mix, travel, material, and any other cost elements according to Section BB-308(a), above.

(b) After discussions, receipt of final proposal revisions, and final evaluation, supplement the technical evaluation report to reflect any changes in technical ratings or evaluation. Include a comparative proposal analysis to show the final ranking of proposals in descending order of merit.

(c) The technical team chief will approve the technical evaluation report and send the report to the SSA to make the source selection decision. A PAR is not required.

BB-510 Competitive range.

Competitive Range Determinations shall be determined as follows: Careful consideration shall be given to the technical standing of all offerors after the initial evaluation. Only those offerors who have submitted the most highly rated proposals should be retained in the competitive range. The competitive range may also be limited for efficiency.

BB-511 Price evaluation and documentation.

Cost or price evaluations shall be conducted as follows:

(a) Cost or price to the Government will be considered as an evaluation criterion, but will normally only be secondary in importance to the technical criteria in determining the basis for award.

(b) A separate contract team report is not required. The contract team is responsible for documenting its cost or pricing analysis and any significant contractual terms, conditions, and other considerations in the price negotiation memorandum (PNM). If a PNM is not developed, document significant contractual terms, conditions and other considerations elsewhere in the contract file.

BB-512 Risk assessment.

The assignment of proposal and performance risk is optional for S&T source selections. Unlike contracts for supplies and services, most S&T contracts are directed toward objectives for which the work or methods cannot be precisely described in advance and it is difficult to judge the probabilities of success or the likelihood of the proposed approach being achieved. Some approaches offer little or no early assurance of full success (see FAR 35.002). Due to the trial and error nature of the S&T environment, many problems and failures are routine and expected. Performance risk, therefore, may not be an important discriminator.

BB-513 Rating system.

Use the following color or adjectival rating system for S&T source selections that do not use standards:

Blue - Exceptional - A response that is outstanding in its major aspects and represents quality expected of a leader in the field. A clearly outstanding contribution.

Green - Acceptable - A "good" rating when considering the Industry as a whole. Reflects an acceptable position.

Yellow - Marginal - A "marginal" rating when considering the industry as a whole. Reflects responses that provide little or no imagination and inspire limited confidence or respect. Represents a minimal contribution.

Red - Unacceptable - Needs a major revision to the proposal to make it correct, or has no reasonable potential for correction. Leaves no doubt as to its technical inadequacy.

BB-514 Source selection decisions.

Source selection decisions shall be made as follows:

(a) Formal source selection decision briefings are optional at the discretion of the SSA.

(b) The Contracting Officer will prepare the SSDD per instructions from the SSA.

(c) The requirement for negotiations to culminate in signed contractual documents that represent the firm commitment of each offeror is not mandatory for S&T source selections. Signed contractual documents suitable for award may be prepared after the source has been selected. The PCO must ensure, however, that further discussions as described in FAR 15.306(d) shall not occur during preparation and processing of the contract documents.

BB-515 S&T source selection schedule of events.

Due to the tailoring of policies and procedures for S&T source selections, a revised schedule of events is provided in Attachment BB-12-90. The sequence of events may vary as circumstances dictate.

PART 6-90 - LOWEST EVALUATED PRICE TECHNIQUE

BB-601 Applicability and scope.

(a) This section provides tailored policies and procedures for source selection in competitively negotiated acquisitions for which use of the LEP technique has been approved. The section provides supplementary guidance unique to the LEP technique and modifies certain AFFARS Appendix BB procedures. It is not, however, a stand-alone section. Requirements of AFFARS Appendix BB or this supplement which are not addressed or tailored in this Part 6-90 are still applicable to acquisitions using the LEP technique.

(b) LEP is a formal source selection procedure that may be used for competitive negotiated acquisitions, except as noted below. LEP is appropriate when it is determined that exceeding minimum requirements is of benefit to the Government, and there is a need to examine the tradeoff between price and other criteria. An objective evaluation formula must be developed and documented before issuance of the solicitation. The formula is based on evaluation criteria and the weights assigned to each factor/subfactor of evaluation. Do not use LEP to make contractor responsibility determinations in accordance with FAR 9.1.

(c) This technique may be used if all of the following conditions are present.

(1) The requirement is suitable for use of a firm fixed price type contract.

(2) The requirement lends itself to the development of meaningful standards (in addition to price) against which proposals may be evaluated.

(3) Submission of a technical proposal is required.

(4) There is a firm basis upon which to determine the price/nonprice ratio, i.e., the Air Force must be able to identify what weight (percentage) price is worth.

(d) LEP shall not be used for the following:

(1) Acquisitions greater than $50M either in instant contract value or total program value.

(2) Acquisitions which may be acquired using sealed bidding (including two-step sealed bidding).

(3) Acquisitions for systems research and development, low rate initial production, or production.

(4) Acquisitions for S&T efforts acquired utilizing the Part 5-90 procedures of this appendix.

(5) Acquisitions for AFMC maintenance, overhaul, and modification.

(e) LEP procedures may be used after approval of the Senior Center Contracting Official.

BB-602 SSET.

Source Selection Evaluation Teams will be organized as follows: The Contracting Officer, who is also the SSA, will lead the SSET. Maximum streamlining of the contracts team and technical team is desired. These teams may be comprised of as few as one member depending on the complexity of the acquisition. In this case, the single individual may be assigned multiple responsibilities.

BB-603 Source selection plan.

Source selection plans (SSP) will be created as follows:

(a) The SSP will include in the section discussing the methodology and rating system an evaluation scheme employing a weighting methodology to establish the relative importance of each evaluation criteria. Relative weights shall be established before release of the solicitation. Price must carry a weight of at least 20 percent, and the various nonprice criteria may total a weight of no more than 80 percent. Note, however, usually price should carry weight of 30 percent or higher. Weights shall be identified in the solicitation; the relative order of importance of all evaluation criteria (factors/subfactors) including price must be identified in Section M.

(b) In the summary of acquisition strategy include an explanation supporting the use of the LEP evaluation technique including why criteria other than price must be considered in order to meet the Air Force's need.

(c) Tailor specific non-price evaluation criteria, weights, and methods of scoring for each acquisition. In addition to the relative weights of price versus nonprice criteria discussed above, care shall be taken to assure that weights and scoring methods assigned to each nonprice criteria truly reflect the needs of the Air Force. Examples of nonprice criteria include size, weight, performance, reliability, maintainability, fuel efficiency, delivery schedule, offeror's past performance, management capability, and understanding of the requirement.

BB-604 Solicitation Notice.

Solicitations shall be prepared as follows: Include a paragraph in either the solicitation transmittal letter or in the solicitation cover sheet to notify offerors of the following:

"Lowest Evaluated Price Evaluation - Offers in response to this solicitation will be evaluated using the Lowest Evaluated Price technique. Contract award decision will occur after evaluation in accordance with applicable criteria. Price is a significant criterion. See Section M of the solicitation for details."

BB-605 Evaluation criteria.

Basis of award and evaluation criteria shall include the following: The Contracting Officer must fully identify, in Section M of the solicitation, the evaluation criteria for the LEP technique. Utilize the provision 5352.215-9011 for Technical Proposals in Section L.

BB-606 Proposal evaluation.

Initial proposal evaluations shall be completed as follows: The following is the sequence of events that shall be followed for proposal evaluations:

(a) The Contracting Officer forwards proposals to the technical team for evaluation. Review of contractor price information will consist of the analysis of cost realism, reasonableness and completeness.

(b) The technical team accomplishes the initial technical evaluation through analysis of each proposal with respect to the standards. The technical team leader will ensure that the evaluation report on each offeror is consistent and rational. Evaluators will evaluate each proposal and indicate its worth in relation to the standards. Evaluators must understand the requirement, the solicitation, the evaluation criteria, and the evaluation standards.

(c) Send the initial technical evaluation report to the Contracting Officer in the format shown below. The four following distinct products are required from the technical team for inclusion in the Proposal Analysis Report:

(1) Nonprice Criteria Scores. The Nonprice criteria scores will be formatted as illustrated in the following sample:

Preliminary Proposal Evaluation

1. Area I - Technical Approach

Factor 1 - 36

Factor 2 - 50

Total Technical Raw Score - 86

2. Area II - Management

Factor 1 - 32

Factor 2 - 24

Factor 3 - 40

Total Management Raw Score - 96

3. Area III - Quality

Factor 1 - 33

Factor 2 - 30

Total Quality Raw Score - 63

(2) Narrative Assessment. The technical evaluation must include a narrative assessment of each proposal which provides the rationale for the technical score. If at any level of the criteria, an offeror's proposal is evaluated as failing to meet a minimum requirement, this fact must be included in the narrative assessment.

(3) During the initial evaluation of proposals, the technical team will record separately, and in addition to the narrative assessment, any proposal deficiencies.

(d) Computation methodology will be performed as follows: After the Contracting Officer has received the initial proposal evaluation reports, a comparative analysis will be performed. This is illustrated in the following sample acquisition:

Normalized

Score

Total Weighted Score 90.93

The normalized score for the nonprice criteria is computed by dividing each offeror's raw score for a criteria by the highest raw score awarded for that criteria and then multiplying by 100. For example, in the sample shown above, assume the highest raw scores awarded for technical approach, management, and quality were 93, 96 and 88, respectively. Therefore, the normalized scores shown above were computed as follows: for technical approach, 86/93 = .9245 x 100 = 92.45; for management, 96/96 = 1.00 x 100 = 100; and for quality, 63/88 = .7159 x 100 = 71.59. Next, the normalized score is multiplied by the weight to arrive at the weighted score. The PCO will complete the missing data for price. The raw score for price will be the actual price proposed, adjusted based on the significant price criteria identified in the solicitation< such as transportation costs, movement of GFP, discounts, etc. The normalized score for price is then computed by dividing each proposed price into the lowest proposed price and multiplying by 100. For purpose of the example, the lowest proposal price was $50 million. Therefore, the normalized score for the $56 million proposal was computed as follows: 50/56 = .8929 x 100 = 89.29. Finally, the normalized score is multiplied by the weight for price to determine the weighted score. By normalizing the price and nonprice criteria, the original ratio between all criteria is retained throughout the evaluation process.

BB-607 Competitive range.

Determination of competitive range will occur as follows: The Contracting Officer will determine the competitive range based upon initial technical scores, written assessments, initial proposed prices, and ability to meet minimum essential requirements. The determination as to which proposals are not in the competitive range and the exclusion of offerors either before or as a result of written or oral discussions will be made by the Contracting Officer and approved by the SSA (See 15.306(c)).

BB-608 Discussions and final evaluation.

After completion of discussions, if conducted, the Contracting Officer shall ask the technical team to provide any changes in the evaluation scores resulting from changes made to proposals. Changes to the scores based on proposal changes must be supported and the rationale provided to the Contracting Officer along with the revised scores.

(a) If the point differential does not represent any actual significant difference in technical merit, then award will be made to the offeror with the lower priced proposal, even though its total point score is lower. The Contracting Officer will prepare the SSDD explaining why the higher rated technical proposal does not represent any actual significant difference in technical merit and get approval of the SSDD from the Senior Center Contracting Official before award.

(b) If the point differential does represent an actual significant difference in technical merit, the Contracting Officer must abide by the LEP formula and award to the offeror with the highest total weighted score.

ATTACHMENT BB-12-90

SCIENCE AND TECHNOLOGY SOURCE SELECTION EVENTS

1. Acquisition Strategy Panel (Optional)

2. R&D Advance Notice Synopsis (Optional)

3. Acquisition Plan

4. Naming of SSA

5. Establishment of Technical and Contract Team

6. Notice of Contract Action Synopsis

7. Solicitation Review

8. Solicitation Release

9. Proposal Received

10. Technical Evaluation of Proposals

11. Initial Technical Evaluation Report Preparation

12. Field Pricing Support (Oral or Written)

13. Competitive Range Determination

14. Competitive Range Briefing (Optional)

15. Discussions with Offerors in Competitive Range

16. Final Proposal Revision

17. Final Proposal Review

18. Technical Evaluation Report Finalization

19. Price Negotiation Memorandum Prepared

20. Formal SSA Decision Briefing (Optional)

21. Pre-Award Notice to Unsuccessful Offeror

22. Decision of SSA Documented

23. Contract Preparation

24. Contract Award

25. Debriefings (if requested)

26. Post-award Conference (Optional)