ipl96-8

HQ AFMC/PK

4375 Chidlaw Road, Suite 6

Wright-Patterson AFB OH 45433-5006

Interim Policy Letter (IPL) 96-008

EFFECTIVE DATE/IMPLEMENTATION: The AFMCFARS changes included in this letter are to be incorporated in solicitations issued on or after the date of this IPL. Incorporate these changes in solicitations issued prior to the date of this IPL if such incorporation will not delay award. This Interim Policy Letter will be superseded by AFMCAC 96-3, anticipated publication date Mar 96. Assure distribution to all Contracting Officers.

1. This IPL implements the following approved cases:

a. Additions to Release of Solicitation Mailing Lists, AFMCFARS 5314.205-5 and Solicitation Mailing Lists, AFMCFARS 5315.403 (Lightning Bolt Case 96-51). Having access to a list of potential offerors provides industry with a tool to facilitate teaming and subcontracting arrangements. The new language describes when, where and how to include a copy of the source list in the solicitation. This will save the time and administrative expense of mailing out copies on an individual basis as they are requested. (Attachment 1)

b. Deletion of RFP Industry Survey in Solicitations, AFMCFARS 5315.408 (Case 96-145. This is not a Lightning Bolt case.). As a result of low return rates on the RFP industry survey over the last several years, this change rescinds the RFP Survey prescribed in AFMCFAR 15.408(91). HQ AFMC/PK is developing a more top-level survey to be used in conjunction with the annual CEO conference. (Attachment 2)

c. Additions to Payment and Performance Bonds Requirements for Fixed Price Subcontracts, AFMCFARS 5328.102-1(4)(a) and 5352.228-9003 (Ligtning Bolt Case 96-66). This case implements a requirement of DFARS 228.102-1(4)(a) for Defense Environmental Restoration Program cost-type construction contracts. The clause requires the prime contractor to obtain from each of its construction subcontractors, for fixed price construction subcontracts over $25,000, (1) a payment bond in favor of the prime contractor sufficient to pay labor and material costs and (2) a peformance bond in an equal amount if available at no additional cost. (Attachment 3)

d. Additions to Material Approval Submittal Form (AF Form 3000), AFMCFARS 5336.290, and 5352.236-9008 (Lightning Bolt Case 96-68). This case implements the AFFARS 5336.290(a) requirement to obtain material approval submittals on AF Form 3000. (Attachment 4)

e. Additions to Consent to Subcontract, Contract Clauses, AFMCFARS 5344.204(b)(1), (2) & (3) and 5352.244-9000 & 9001 (Lightning Bolt Case 96-43). Current language in FAR 52.244-1 (Subcontracts - Fixed Price Contracts) allows for the deletion of the requirement for advance notification or consent to subcontract based on the information gathered and the review done during negotiations. The language in FAR 52.244-2 (Subcontracts Cost Reimbursement And Letter Contracts) does not address the deletion of the requirement for advance approval for cost reimbursement contracts. Cost reimbursement contracts need the same flexibility to delete the requirement for advance notification or consent to subcontract, when all the required conditions are met. The solicitation provision allows for submission of the required information at proposal time, and the contract clause allows for the deletion of consent for the listed contracts after the required review. (Attachment 5)

2. If you have any questions, please call me or have your staff call either of my action officers, Ms. Chris Shockey or Mr. Wm. Michael Thompson, HQ AFMC/PKP, DSN 787-6757.

MILTON C. ROSS, SES

Acting Deputy Director of Contracting

1. AFMC FAR Case 96-51

2. AFMC FAR Case 96-145

3. AFMC FAR Case 96-66

4. AFMC FAR Case 96-68

5. AFMC FAR Case 96-43

5314.205-5 Release of Solicitation Mailing Lists

In order to facilitate subcontracting/teaming on a program, a list of prospective bidders may be included as an attachment to the solicitation. The solicitation should contain a notice to advise bidders that the list is provided only to facilitate subcontracting/teaming, if desired; the date to which the list is current; and any other information regarding how future updates to the list will be handled, if applicable. This notice may be included either on the list of prospective bidders or as an administrative notice in Section L.

5315.403 Solicitation Mailing Lists

In order to facilitate subcontracting/teaming on a program, a source list may be included as an attachment to the solicitation. The solicitation should contain a notice to advise offerors that the list is provided only to facilitate subcontracting/teaming, if desired; the date to which the list is current; and any other information regarding how future updates to the list will be handled, if applicable. This notice may be included either on the source list or as an administrative notice in Section L.

Atch 1

(7) Use the matrix during formal government reviews to determine if the solicitation is ready to be released. At a minimum; the PCO shall ensure that the Section M of the RFP does not call for the evaluation of proposal data not requested by Section L. While offerors may be evaluated based on information obtained from outside of the offerors proposal (CPAR data, preaward survey data, etc.), these areas usually require the offeror to submit some basic reference information (list of previous contracts, identification of contract administration offices, etc.) In these cases, the review must ensure that necessary reference data is requested by the RFP. In addition, the RFP should not request data in Section L for which no evaluation is described in Section M. The matrix serves as an excellent tool for making these determinations.

(8) After award, retain the matrix as a reference tool in the contract file. When contract modifications become necessary, the matrix may help in ascertaining the portions of the contract requiring change.

(b) Keep the number and details of required pricing alternatives or options to a minimum consistent with management information needs.

(c) Keep requirements for the submission of "plans" to a minimum, particularly when the potential offerors' existing management systems (e.g., C/SCSC) have been acceptable on previous contracts. Take a "zero base" approach to fully justify requested solicitation plans. That is, start with the position that no plans are to be required and fully justify each plan that is required.

5315.407 Solicitation provisions.

(90)(a) MADES solicitations only: Include the provision at 5352.215­9000, Representations and Certifications in Section K.

(b) Solicitations for replenishment spares only: Include applicable provisions suggested in Subpart 5391, Surplus Acquisitions.

5315.408 Issuing solicitations.

(90) Solicitation Review Board (SRB). The purpose of a SRB is to review and evaluate solicitations before release to industry. Guidance on policy and procedures is in AFMCR 70-7, Solicitation Review Boards.

5315.409 Pre­proposal conferences.

(90)(a) Whenever practicable, a notice of prebid/preproposal conference should be included in the Commerce Business Daily synopsis. The notice should include date, time, location (including installation and building) and, if

applicable, security requirements.

(b) Minutes, including questions and responses will be maintained for each preproposal conference. This record will be provided to all firms in attendance and to those not in attendance to whom solicitations have been provided. To preclude potential delays in the proposal opening date, copies of the minutes will normally be mailed within five working days following the conference.

5315.410 Amendment of solicitations before closing date.

(90) Procedures.

(a) All changes to quantity, delivery schedules, opening dates specifications, significant contract provisions or to correct a defect or ambiguity will be clearly displayed as a "From" and "To" entry in an amendment to the solicitation. This will enable positive identification and correct interpretation of the change.

Atch 2

(b) In the case of quantities, the old and new quantity and the net increase/decrease will be shown on the amendment.

(c) The "From" and "To" entries for changes other than those identified in paragraph (a) above are desirable but not mandatory.

5315.412 Late proposals and modifications.

(90) Use AFMC Form 219, "Record of Late Bid/Proposal Modification of Bid/Proposal and Withdrawal of Bid." 

5328.102-1 General.

(4)(a) When DFARS 228.102-1 applies and a cost-reimbursement contract with fixed price construction subcontracts over $25,000 is contemplated, insert a clause substantially similar to 5352.228.9003 in Section H of solicitations and contracts.

5352.228-9003 Payment and Performance Bonds Requirements for Fixed Price Subcontracts.

As prescribed at 5328.102-1(4)(a), insert a clause substantially similar to the following in Section H of solicitations and contracts:

(a) Pursuant to DFARS 228.102-1, the requirement for payment and performance bonds is waived for cost-reimbursement contracts. In the performance of this cost-reimbursement contract, it is expected that fixed price subcontracts for construction or demolition efforts will be used. Therefore, for fixed price construction subcontracts greater than $25,000 the prime contractor is required to obtain from each construction subcontractor: (1) A payment bond in favor of the prime contractor sufficient to pay material and labor costs; and, (2) A performance bond in an equal amount, if available at no additional cost.

(b) When evidence of a performance bond and a payment bond with good and sufficient surety is required, such evidence shall be delivered to the contracting officer within 10 calendar days after award of the respective subcontract by the prime contractor.

(c) All bonds, including any necessary reinsurance agreements and construction permits must be received by the contracting officer before a notice to proceed with the work will be issued.

Atch 3

5336.290 Material Approval Submittal Form (AF Form 3000).

Insert the clause at 5352.236-9xxx in Section I of solicitations and contracts when AF Form 3000, Material Approval Submittal, is required for construction contracts by AFFARS 5336.290(a).

5352.236-9008 Preparation of Material Approval Submittals.

As prescribed at 5336.290 insert the following clause in Section I of solicitations and contracts.

The submittals contemplated by FAR 52.236-5, Materials and Workmanship, shall be accomplished on and in accordance with instructions pertaining to AF Form 3000, Material Approval Submittal.

Atch 4

5344.204 Contract Clauses.

(b)(1) For AFMC maintenance, overhaul and modification contracts described in Part 5392. Insert the clause at FAR 52.244-2 with Alternate 1, entitled Subcontracts Under Cost-Reimbursement and Letter Contracts, if the contract provides for reimbursement of direct parts and materials on a cost basis.

(2) The contracting officer may insert a clause substantially the same as 5352.244-9000, Deletion of Advance Notification/Consent Requirement for Subcontracts, in Section I of contracts and solicitations of cost reimburse-ment contracts when relief from consent to subcontract is desired at contract award. Use of this AFMCFARS clause for cost-reimbursement contracts is not permitted for acquisitions of major systems and subsystems or their components.

(3) The contracting officer may insert a provision substantially the same as 5352.244-9001, Request for Deletion of Advance Notification/Consent Requirement for Subcontracts, in Section L of solicitations when a cost reimbursement contract is anticipated and it is desired to obtain sufficient information to allow for evaluation of proposed subcontracts during negotia-tion. Use of this AFMCFARS clause for cost-reimbursement contracts is not permitted for acquisitions of major systems and subsystems or their components.

Atch 5

5352.244-9000 Deletion of Advance Notification/Consent Requirement for Subcontracts

As prescribed at 5344.204(b)(2) insert the following clause substantialy as written in Section I of solcitations and contracts. Paragraphs (a) and (b) of FAR 52.244-2 do not apply to the following subcontracts, which were evaluated during negotiations: [list subcontracts].

This clause shall in no way relieve the contractor of any responsibility for performing this contract; shall not create any obligation of the Government to, or privity with, these subcontractors; shall be without prejudice to any right or claim of the Government under this contract; and shall not constitute a determination of the acceptability of the subcontract terms or conditions or the allowability of any costs under this contract. Any request for consent to subcontract for subcontracts not listed above must be processed through the cognizant administrative contracting officer as required by the "subcontracts" clause.

5352.244-9001 Request for Deletion of Advance Notification/Consent Requirement for Subcontracts

As prescribed at 5344.204(b)(3) insert the following provision substantially as written in Section L of solicitations:

If a waiver from contracting officer (CO) consent to subcontract is desired at time of contract award for those subcontracts that require award within 90 days after prime contract award, indicate this in your proposal transmittal letter. In addition to any required subcontractor cost and pricing data and the requirements of FAR 52.244-2 (b)(2), the following information per FAR 44.202-2 must be provided in your cost proposal for each subcontract requiring consent:

1. Justify the need for early CO consent to subcontract.

2. Describe how the decision to subcontract is consistent with your approved make-or-buy program, if applicable.

3. Is the subcontract for special test equipment or facilities? If so, are they available from government sources?

4. Explain how selection of the particular supplies, equipment, or services is technically justified.

5. Describe how you have complied with the prime contract requirements regarding labor surplus area or small business subcontracting including, if applicable, your plan for subcontracting with small business concerns and small disadvantaged business concerns.

6. Was adequate price competition obtained? If not, properly justify its absence. If so, describe how.

7. Were any subcontractors' alternate proposals offered? If so, what was the disposition of these alternate proposals?

8. What is your basis for selecting and determining the responsibility of the particular subcontractor?

9. How is the proposed subcontract type appropriate for the risks involved?

10. Describe what consideration will be obtained for any proposed subcontract that will involve the use of government-furnished facilities.

11. Describe how you translated prime contract technical requirements into subcontract requirements.

12. How did you comply with applicable cost accounting standards for awarding the subcontract?

13. Is the proposed subcontractor on the List of Parties Excluded from Federal Procurement and Nonprocurement Programs?

14. Do you have an ACO approved purchasing system?

Following review of the technical proposal and the above requested information, the Government will determine if CO consent to subcontract can be waived at contract award. If the Government elects to award without discussion and sufficient information and/or adequate justification is not provided to allow for CO consent to subcontract, award will be made without a waiver for consent to subcontract and the consent will have to be processed through the administrative contracting officer.