# DLAD PART 90

- SUBPART 90.1 - PARTS PURCHASE OR BORROW PROGRAM
- SUBPART 90.2 - TRAINING

- 90.201 Granting credit for course requirements fulfilled by alternate methods.

- 90.201-1 Scope and delegations.
- 90.201-2 Procedures and documentation.

- 90.202 Waivers.

- 90.202-1 Definition.
- 90.202-2 Policy and procedures for requesting waivers.

- SUBPART 90.3 - SELECTION OF CONTRACTS TO BE TERMINATED FOR CONVENIENCE IN EVENT OF UNEXPECTED DECELERATION

- 90.301 Policy.
- 90.302 Responsibilities.
- 90.303 Procedures.

- 90.303-1 General procedures.
- 90.303-2 Operation procedures.

- SUBPART 90.4 - RECOVERY AND UTILIZATION OF PRECIOUS METALS (SILVER, GOLD, PLATINUM, PALLADIUM, RHODIUM, IRIDIUM) FROM SCRAP MATERIALS

- 90.401 General.
- 90.402 Policy.
- 90.403 Responsibilities.
- 90.404 Procedures.

- SUBPART 90.5 - CONTRACT REVIEW PROCEDURES

- 90.501 Checklists.

- SUBPART 90.6 - GUIDANCE FOR CONTRACTING OFFICERS' REPRESENTATIVES

- 90.601 General.

- 90.601-1 Reserved.
- 90.601-2 Acquisition process in DLA.
- 90.601-3 The contract.

- 90.602 Specific information concerning CORs and COTRs.

- 90.602-1 Reserved.
- 90.602-2 Definitions.
- 90.602-3 Designation of the COR/COTR.
- 90.602-4 Responsibilities of the COR.
- 90.602-5 Responsibilities of the COTR.
- 90.602-6 Limitations on the authority of the COR/COTR.

- 90.603 COR/COTR files.

- 90.603-1 Contents of the COR/COTR files.
- 90.603-2 Required documents.
- 90.603-3 Disposition of completed COR/COTR files.

- SUBPART 90.7 - DAR CASE FORMAT

- 90.700 Scope of subpart.
- 90.701 Purpose.
- 90.702 Case format.
- 90.703 Case statement.

- 90.703-1 Problem section.
- 90.703-2 Recommendation section.
- 90.703-3 Discussion section.

- 90.704 Deviations.

- SUBPART 90.9 - UPDATING SMALL DISADVANTAGED BUSINESS STATUS

- 90.901

- SUBPART 90.10 - ADMINISTRATION OF DLAD

- 90.1001 Administration and explanation.

- SUBPART 90.11 - ACQUISITION PLANNING

- 90.1101 Contents of written acquisition plans.
- 90.1102 An illustrative acquisition plan format is provided as follows:
- 90.1103 Advance Acquisition Planning Template.
- 90.1103 [Advance Acquisition Planning Template.

- SUBPART 90.12 - POSTAWARD PRICE REVIEWS

- 90.1201 Simplified acquisition price review program.

- SUBPART 90.13 - STREAMLINED SOLICITATIONS FOR ENERGY CONTRACTS

- 90.1300 Scope of Subpart.
- 90.1301 - FAR clauses/provisions.
- 90.1302 - DFARS Clauses/Provisions.
- 90.1303 DESC clauses/provisions

- SUBPART 90.14 - RECOUPMENT ACTIVITY REPORTING

- 90.1400 Sample reporting.

- SUBPART 90.15 - PERFORMANCE BASED LOGISTICS (PBL) ACQUISITION PROCESS

- 90.1501 Requirement
- 90.1502 Acquisition Process and Milestone Review and Approvals.
- 90.1503 Integrated Acquisition Review Board

- SUBPART 90.16 - STRATEGIC SUPPLIER ALLIANCE (SSA)

- 90.1600 – Strategic Supplier Alliance Policy
- 90.1601 – Strategic Supplier Alliance Process
- 90.1602 - SSA Definitions

- SUBPART 90.17 DOMESTIC NON-AVAILABILITY DETERMINATIONS

- 90.1700 Requirement
- 90.1701 Minimizing Berry Amendment violations.

- SUBPART 90.18 “PRICE PENDING” ITEMS

- 90.1800 Background

- SUBPART 90.19 COMPETITIVE SOURCING AND HIGH PERFORMING ORGANIZATIONS (HPOs)

- 90.1901 Letter of Obligation (LoO) Issuance, Acceptance, and Key Personnel Roles and Responsibilities
- 90.1902 LoO Change Requests for MEOs and HPOs.
- 90.1903 A-76 Standard Competition Milestones.
- 90.1904 Monitoring Responsibilities
- 90.1905 Department of Defense Commercial Activities Management Information System (DCAMIS)
- 90.1906 MEO Re-competes / Competing HPOs

PART 90

SUPPLEMENTAL PROCEDURES

TABLE OF CONTENTS

SUBPART 90.1 - SALE, LOAN, OR GIFT OF PROPERTY

90.101 PARTS PURCHASE OR BORROW PROGRAM

SUBPART 90.2 - TRAINING

90.201 Granting credit for course requirements fulfilled by alternate

methods.

90.201-1 Scope and delegations.

90.201-2 Procedures and documentation.

90.202 Waivers.

90.202-1 Definition.

90.202-2 Policy and procedures for requesting waivers.

SUBPART 90.3 - SELECTION OF CONTRACTS TO BE TERMINATED FOR CONVENIENCE IN EVENT OF UNEXPECTED DECELERATION IN MILITARY REQUIREMENTS

90.301 Policy.

90.302 Responsibilities.

90.303 Procedures.

90.303-1 General procedures.

90.303-2 Operation procedures.

SUBPART 90.4 - RECOVERY AND UTILIZATION OF PRECIOUS METALS (SILVER, GOLD, PLATINUM, PALLADIUM, RHODIUM, IRIDIUM) FROM SCRAP MATERIALS

90.401 General.

90.402 Policy.

90.403 Responsibilities.

90.404 Procedures.

SUBPART 90.5 - CONTRACT REVIEW PROCEDURES

90.501 Checklists.

SUBPART 90.6 - GUIDANCE FOR CONTRACTING OFFICERS' REPRESENTATIVES AND CONTRACTING OFFICERS' TECHNICAL REPRESENTATIVES

90.601 General.

90.601-1 Reserved.

90.601-2 Acquisition process in DLA.

90.601-3 The contract.

90.602 Specific information concerning CORs/COTRs.

90.602-1 Reserved.

90.602-2 Definitions.

90.602-3 Designation of the COR/COTR.

90.602-4 Responsibilities of the COR.

90.602-5 Responsibilities of the COTR.

90.602-6 Limitations on the authority of the COR/COTR.

90.603 COR/COTR files.

90.603-1 Contents of the COR/COTR files.

90.603-2 Required documents.

90.603-3 Disposition of completed COR/COTR files.

SUBPART 90.7 - DAR CASE FORMAT

90.700 Scope of subpart.

90.701 Purpose.

90.702 Case format.

90.703 Case statement.

90.703-1 Problem section.

90.703-2 Recommendation section.

90.703-3 Discussion section.

90.704 Deviations.

SUBPART 90.8 Reserved.

SUBPART 90.9 - UPDATING SMALL DISADVANTAGED BUSINESS STATUS AND WOMEN-OWNED BUSINESS STATUS IN THE DD FORM 350 CAGE FILE

90.901 Reporting requirement.

90.902 Report format.

SUBPART 90.10 - ADMINISTRATION OF THE DLAD

90.1001 Administration and explanation.

SUBPART 90.11 - ACQUISITION PLANNING

90.1101 Contents of written acquisition plans.

90.1102 An illustrative acquisition plan format.

90.1103 Advance Acquisition Planning Template

SUBPART 90.12 - POSTAWARD PRICE REVIEWS

90.1201 Simplified acquisition price review program.

SUBPART 90.13 - STREAMLINED SOLICITATION FOR FUELS CONTRACTS (DEVIATION)

90.1300 Scope of subpart.

90.1301 FAR clauses/provisions.

90.1302 DFARS clauses/provisions.

90.1303 DESC clauses/provisions.

SUBPART 90.14 - RECOUPMENT ACTIVITY REPORTING.

90.1400 Sample reporting

SUBPART 90.15- PERFORMANCE BASED LOGISTICS (PBL) ACQUISITION PROCESS

90.1501 Requirement

90.1502 Acquisition Process and Milestone Review and Approvals

90.1503 Integrated Acquisition Review Board

SUBPART 90.16 - STRATEGIC SUPPLIER ALLIANCE (SSA)

90.1600 Strategic Supplier Alliance Policy

90.1601 Strategic Supplier Alliance Process

90.1602 SSA Definitions

SUBPART 90.17 – DOMESTIC NON-AVAILABILITY DETERMINATIONS

90.1700 Requirement.

90.1701 Minimizing Berry Amendment Violations

SUBPART 90.18 – PRICE PENDING ITEMS

SUBPART 90.19 – COMPETITIVE SOURCING & HIGH PERFORMING ORGANIZATIONS (HPOs)

90.1904 Monitoring Responsibilities

90.1905 Department of Defense Commercial Activities Management Information System (DCAMIS)

90.1906 MEO Re-competes / Competing HPOs

SUBPART 90.1 - PARTS PURCHASE OR BORROW PROGRAM

See guidance in DLAI 4140.67, i.e.,(http://www.dlaps.hq.dla.mil/dlai/i4140.67.htm)

DLA Replenishment Parts Purchase or Borrow (RPPOB) Program

TABLE OF CONTENTS

SUBPART 90.2 - TRAINING

90.201 Granting credit for course requirements fulfilled by alternate methods.

90.201-1 Scope and delegations.

These procedures apply to all acquisition work force members at DLA activities subject to the DLAD (see 1.103). The Heads of contracting activities have the authority to evaluate experience, education, or alternate training completed and to determine if it fulfills the requirements of mandatory DoD contracting courses. This authority may be delegated, without power of redelegation to those officials authorized to select, appoint, and terminate the appointment of contracting officers by 1.603-1(90).

90.201-2 Procedures and documentation.

Applications for credit by alternate methods will be made on the DD Form 2518, Fulfillment of DoD Mandatory Training Requirement, as outlined in DoD 5000.52-M. A copy of each DD Form 2518 along with a statement of the alternate method determined to be equivalent will be forwarded to J-73 for reporting purposes.

90.202 Waivers.

90.202-1 Definition.

A waiver is defined as exempting someone from taking a course without certifying that the person has gained knowledge from experience, formal education or other training. Fulfillment of requirements by alternate methods shall not be considered or used as a "waiver" of requirements.

90.202-2 Policy and procedures for requesting waivers.

Acquisition personnel will normally fulfill mandatory training requirements by course completion or alternate methods, therefore, waivers are discouraged. Requests for waivers will be forwarded to J-73 for evaluation and processing.

SUBPART 90.3 - SELECTION OF CONTRACTS TO BE TERMINATED FOR CONVENIENCE IN EVENT OF UNEXPECTED DECELERATION

90.301 Policy.

Terminations for convenience will be based on individual decisions resulting from a comparison of costs for termination and excess position of items versus the need for release of obligated funds for higher priority use.

90.302 Responsibilities.

The decision to terminate a contract for the convenience of the Government is the joint responsibility of the commodity manager and the contracting officer at the cognizant DSC. In those cases where the contract resulted from a MIPR, the decision to terminate for convenience is the responsibility of the MIPR initiator; however, the contracting officer, upon request, must inform the initiator of all elements which have any bearing on the status of the contract.

90.303 Procedures.

90.303-1 General procedures.

Upon receipt of a request for a cutback in contract quantities from the cognizant commodity manager, the following information will be utilized in selecting the contract for termination:

(a) Ascertain all current contracts for items involved.

(i) Determine the undelivered portion of each contract.

(ii) Consider supplies in transit (f.o.b. destination contract) as deliveries, unless the contract is delinquent and a notice to terminate for default has been sent to the contractor.

(iii) Determine what deliveries, if any, are delinquent.

(iv) Determine whether the delinquency is excusable or inexcusable.

(v) Contract quantities scheduled for direct delivery to users are not subject to termination action unless specifically so designated.

(b) If delinquency is considered inexcusable, terminate for default where appropriate.

(c) Where termination for default is not appropriate or where additional quantities remain to be cut back after termination for default, proceed in the selection of contracts to be terminated for convenience.

(1) First choice should be where contractors are agreeable to total or partial termination (voluntary or no cost settlement).

(2) Consider the following factors.

(i) Contracts involving contractors' commercial item.

(ii) Contracts awarded as rated orders.

(iii) Contracts for mandatory acquisition.

(iv) Contracts most recently awarded and those providing for longest production lead time where production has not progressed to an appreciable degree.

(v) Contracts awarded at the highest price and work down pricewise.

(vi) Partial termination of all contracts where two or more contractors are involved in lieu of total termination of a few.

(d) The dollar amount of potential settlement claims should be estimated with the assistance of DCMA. Consider:

(1) Unit price of undelivered items.

(2) Raw material on hand and/or on order.

(3) Components on hand or on order.

(4) Work in process.

(5) Unamortized start up costs.

(6) Percentage of completion.

(7) Current commercial value and saleability of the item involved.

(8) Disposal actions required, taking into consideration recoupment through sales of items to be disposed.

90.303-2 Operation procedures.

(a) The Supply function or the MIPR initiator will advise the Contracting function to cancel an item by quantities and consignee. The Supply function or the MIPR initiator will be required to indicate all open purchase requests and/or contracts when requesting information upon which to base a termination decision or when requesting cancellation by item and consignee.

(b) Contracting and Production, using procedures in 90.303, will determine what portion of each open contract should be terminated.

(c) If the Contracting function's decision indicates that the Supply function's original request should be revised, the decision will be coordinated with the Supply function and elevated to the Supply Chain HCA. The final authority for deciding whether or not to terminate, when substantial claims are involved, is the Center Commander/Director.

(d) Upon completion of above actions, the Contracting function will issue the termination notice with a copy to DCMA for termination settlement action.

TABLE OF CONTENTS

SUBPART 90.4 - RECOVERY AND UTILIZATION OF PRECIOUS METALS (SILVER, GOLD, PLATINUM, PALLADIUM, RHODIUM, IRIDIUM) FROM SCRAP MATERIALS

90.401 General.

DoD has assigned DLA the mission to reclaim precious metals from precious metal bearing scrap and waste materials, and to make available reclaimed precious metals as Government-furnished property in acquisition of items containing precious metals. This section implements DoD Directive 4160.22, Recovery and Utilization of Precious Metals, (as revised) which establishes DoD policy governing the management of the recovery and the use of precious metals derived from precious metal bearing scrap and waste materials generated by all elements of DoD worldwide. DLA is assigned the responsibility for managing the overall program and has designated the DRMS, Battle Creek, Michigan, as the activity charged with the responsibility for managing the retrieval and refining of precious metals. Defense Supply Center Philadelphia (DSCP) has been assigned the supply management function for precious metals.

90.402 Policy.

(a) All DLA elements generating precious metal bearing scrap and waste materials shall establish and monitor an internal program to assure the economical reclamation of precious metals, consistent with the overall DoD policy of effecting maximum use of excess property to meet DoD needs.

(b) Recovered precious metals, after refinement, will be made available to DoD elements for their use as Government-furnished property to reduce new acquisition costs.

90.403 Responsibilities.

Supply Chain HCAs or for those DLA activities not designated as a contracting activity (see DFARS 202.101), the Commander/Director/Administrator, are responsible for the following:

(a) Reporting precious metal bearing scrap and waste materials to the DRMS Manager for disposition and shipment to destination upon notification by the DRMS Manager.

(b) Using the refined precious metals maintained in storage by the DSCP Precious Metals Inventory Manager, as GFP, whenever feasible, for contracts requiring precious metals bearing materials.

90.404 Procedures.

(a) Prior to soliciting offers for awards of contracts requiring precious metals, contact the DSCP Precious Metals Inventory Manager,

DSCP-Y, indicating the item, quantity, and grade of precious metal required for the acquisition. The precious metals are identified as follows:

NSN Nomenclature Unit of Issue

9660-00-042-7768 Platinum granules......................Troy ounce.

9660-00-151-4050 Platinum sponge........................Troy ounce.

9660-00-042-7733 Gold bullion/granules..................Troy ounce.

9660-00-042-7765 Palladium granulations.................Troy ounce.

9660-01-039-0320 Palladium sponge.......................Troy ounce.

9660-00-106-9432 Silver bullion/granules................Troy ounce.

9660-01-010-2625 Rhodium................................Troy ounce.

9660-01-011-1937 Iridium sponge.........................Troy ounce.

9660-01-039-0313 Ruthenium sponge.......................Troy ounce.

If the required amount is available, forward a letter or TWX to DSCP-Y, requesting that the required quantity be reserved to cover the acquisition including the estimated delivery schedule.

(b) When a contract is awarded, a Military Standard Requisitioning and Issue Procedure (MILSTRIP) requisition is to be submitted to DSCP-Y. The requisition must cite full Troy ounces (partial ounces shall be rounded off to the nearest whole ounce). Exception data are to be cited. The exception data are: the exact "ship to" address (the Department of Defense Activity Address Directory (DoDAAD) sometimes cites post office boxes or is not always accurate); the contract number on which the precious metals are committed for use (this is necessary for control and audit purposes); the end item application, the NSN, the part number, or any other identifying data which is necessary in order that the precious metal may be recovered from the item when it reaches the end of its life cycle; and a contact point with phone number at the requisitioning activity (this

is required in case it is necessary to resolve any problems).

(c) Transportation charges are included in the unit price. Transportation is usually accomplished by premium method (armored van); therefore, multiple requisitions to the same destination should be consolidated whenever possible. Delivery normally will be accomplished within 3 weeks after receipt of the requisition by the DSCP Inventory Manager.

SUBPART 90.5 - CONTRACT REVIEW PROCEDURES

90.501 Checklists.

The following contract review checklists have been developed for use as guides by DLA contracting officers and buyers in their individual contract reviews. The checklists may be modified to suit the needs of the contracting activity. Standard DLA-wide forms are not prescribed in order to permit development of local checklists.

(a) Contract review checklist - supplies/services.

CONTRACTOR: ________________________________________________________

CONTRACT NO.: _______________________ DOLLAR VALUE: $______________

BRIEF DESCRIPTION OF SUPPLIES OR SERVICES

QUANTITY UNIT PRICE EXTENSION

$ $

1. Does the Center/Activity have the authority to YES NO N/A

purchase this item? (DFARS 208.70)

TAB NO. 1 PR/MIPR

2. In file? (53.201-92(b)(3)(i))

3. Are amendments approved by appropriate authority

and are they attached? (53.201-92(b)(3)(i))

4. Option quantity included? (FAR 17.202)

TAB NO. 2 SPECIFICATION/DRAWING

5. Is the purchase description prepared in accordance

with FAR 11.000?

TAB NO. 3 ACQUISITION PLAN/AMENDMENTS (FAR/DFARS/DLAD 7.1)

6. Is information sufficient to support proposed

method of acquisition (Sealed Bid - Competitive

Proposals)? (FAR 6.401)

7. Was the acquisition plan approved at a level above

the buyer in accordance with DLAD 7.102(91)?

8. Were market surveys and market research performed

in accordance with DLAD 7.102(90)?

9. Is required delivery schedule realistic?

10. If option proposed, authorized/appropriate?

(FAR 17.202)

11. Does the acquisition plan define S&S requirements (items, quantities, delivery terms), ensure S&S capability is developed, and include S&S testing in accordance with 7.104(b)(91) and 17.9303(c)? Does the acquisition plan provide all the information required in 90.1101(b)(18) regarding S&S?

TAB NO. 4 JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION:

12. Was contracting without providing for full and

open competition justified? (FAR 6.303-1)

TAB NO. 5 DETERMINATION & FINDINGS

13. Was a justification for use of option prepared?

(FAR 17.205(a))

14. If option is not to be evaluated, was a

determination approved at a level above the contracting

officer? (FAR 17.206(b))

15. If for full and open competition after exclusion

of sources, was a D&F prepared? (FAR 6.202(b)(1))

TAB NO. 6 NONPERSONAL SERVICES DETERMINATION

16. If nonpersonal services involved, was determination

issued? (53.201-92(b)(3)(iv))

TAB NO. 7 DOL WAGE DETERMINATION

17. Was a wage determination requested? YES NO N/A

(DLAD 53.201-92 (b)(3)(v))

18. If wage determination obtained, is it current

or does file contain documentation authorizing extension?

TAB NO. 8 SMALL BUSINESS SET-ASIDE DETERMINATION

19. Does information provided support the determination?

(FAR 19.501(c)/DLAD 53.201-92(b)(3)(vi))

20. Is withdrawal/modification of the initial

set-aside determination explained? (FAR 19.506(c))

TAB NO. 9 BUY AMERICAN ACT

21. If applicable, has a nonavailability determination

been prepared and approved pursuant to DFARS 225.102/DLAD

25.102?

TAB NO. 11 SOURCE LIST

22. List includes those initially solicited and those

added as a result of requests, with dates for the latter? (53.201-92(b)(3)(vii))

23. Is the list excessively long? (FAR 14.205-4(a))

24. Is list annotated as to "no bids" received?

(FAR/DLAD 14.205-2)

TAB NO. 12 PRESOLICITATION NOTICE

25. Should preinvitation notice (FAR 14.205-4(c))

or presolicitation notice (FAR 15.201(c)(5)) have been used?

26. Should draft RFP ((FAR?DLAD 15.201(c)(6)) have been used?

TAB NO. 13 SYNOPSIS

27. Copy of transmittal in file?

28. In proper format? (FAR 5.207/DFARS 205.207)

29. No synopsis; justification adequate? (FAR 5.202)

30. Was adequate time allowed? (FAR 5.203)

TAB NO.14 SOLICITATION & AMENDMENTS

31. Was solicitation issued in a timely manner?

32. Do solicitation provisions reflect PR/MIPR

requirements?

33. If oral solicitation, does file contain

justification for its use? (FAR 15.203(f))

34. Bidding time/RFP response time adequate?

(FAR 5.203 and 14.202-1)

35. Format in accordance with FAR 14.201-1(IFB)

or 15.204-1(RFP)?

36. Were amendments sent to all originally solicited?

(FAR 14.208/15.206)

37. Were amendments properly dated? YES NO N/A

(DLAD 53.201-92 (b)(3)(viii)

38. Are solicitation clauses and provisions

current/complete? (FAR 14.201-6/15.209)

39. Does solicitation include evaluation factors?

(15.612-90(a)/15.304)

40. Does the solicitation address S&S requirements, capability, and testing as outlined in the Acquisition Plan (90.501(a)12.)?

TAB NO. 18 ABSTRACT OF OFFERS

41. Abstract of bids/proposals: (FAR 14.403)

(1) Signed and dated?

(2) All bids/offers entered properly?

(3) Exceptions noted? (53.201-92(b)(4)(i))

TAB NO. 19 PACKAGING/TRANSPORTATION/FREIGHT RATE DATA

42. Packaging/transportation/freight rate data obtained

and determined to be adequate? (53.201-92(b)(4)(ii))

TAB NO. 20 COST/PRICING DATA

43. Were cost or pricing data requested in the

solicitation? (FAR 15.403-5)

44. When cost or pricing data are required, has the

contracting officer obtained the Certificate of Current

Cost or Pricing Data? (FAR 15.406-2)

45. If cost or pricing data are not required but the information other than cost or pricing needed to has to help establish price reasonableness or cost realism? (FAR 15.404-3)

46. If cost or pricing data submitted, is it in file?

47. If cost or pricing data were required, has the

contracting officer indicated the extent to which

he/she has relied on the data and recognized as inaccurate,

incomplete or non-current any cost or pricing data

submitted? (FAR 15.406-3(a)(6)

48. If cost or pricing data were or were not requested,

does the file provide the exception used and basis for

it? (FAR 15.406-3(a)(5))

TAB NO. 21 AUDIT REPORT/WAIVER/FIELD PRICING REPORT

49. Was field pricing support obtained (DCAA audit;

DCAA pricing/technical report)? FAR 15.404-2 and DFARS 215.404-2))

50. If so, does the file contain all pricing support information? FAR 15.406-2(b)(2))

51. Was independent price analysis performed by the

cost/price analysis element? (15.404-1(a)(90))

TAB NO. 22 PRICE/COST ANALYSIS

52. If sole bid received, is the file documented to

reflect actions taken and rationale used to determine

the reasonableness of prices? (14.408-2(90))

53. Was weighted guidelines analysis prepared?

(FAR 15.404-4(c)(2)/ DFARS 215.404-71

54. If prior contracts were used in the price analysis, YES NO N/A

were the price reasonableness determinations of those

contracts stated? (FAR/DLAD 15.404-1(b)(2)(ii))

55. Were realistic negotiation objectives established?

(15.406-1)

TAB NO. 23 PRENEGOTIATION BRIEFING MEMO

56. Was prenegotiation briefing presented to appropriate

authority prior to negotiations? (15.406-1(b)(91))

57. Does prenegotiation briefing memorandum clearly

establish basis for negotiating position?

58. Does it include all of the required elements?

(15.406-1(b)(92))

59. Was basis for decision to negotiate, or decision

to accept the initial offer without discussion,

documented? (FAR 15.306(a)(3) and DLAD 15.406-1(b)(92)

60. Is prenegotiation briefing memorandum signed

and dated?

61. Was a comparative schedule (spread sheet) prepared

as required by 15.406-1(b)(92)(4)?

62. If negotiation objectives were changed or exceeded,

was prenegotiation briefing authority notified?

(15.406-1(b)94)

TAB NO. 24 PRICE NEGOTIATION MEMO

63. Were negotiations conducted on an individual cost

element basis?

64. Was option quantity considered in negotiations?

(DLAD 15.403-4(a)(1)(i)(90) and 15.403-4(b)(90)(i))

65. Was rent-free use of Government property considered

in the negotiations?

66. Was authority obtained for rent-free use from

cognizant administrative contracting officer?

67. Was appropriate contract type selected?

68. Was common cutoff date for negotiations established

with all offerors? (FAR 15.307(b))

69. Does price negotiation memorandum (PNM) format conform

with FAR 15.406-3(a)/DFARS 215.406-3(a)/DLAD 15.406-3(a))?

70. Does the PNM clearly and conclusively support price

reasonableness determination? (DLAD 15.406-3(a)(ii))

71. Is statement of same included in the PNM?

72. Is the PNM signed and dated?

73. Does the PNM document any negotiated changes to the S&S provisions (including those related to handling surge investments at the end of the contract), document (where it occurs) inability to obtain S&S capability and alternative plans as required in 17.9304(g)(3), and include a finding that any surge investments proposed are the most cost effective solutions?

TAB NO. 25 CERTIFICATE OF COST OR PRICING DATA YES NO N/A

74. Was certificate of current cost or pricing data

obtained? (FAR 15.406-2)

75. Were option requirements included?

TAB NO. 27 PREAWARD SURVEY/WAIVER

76. Was preaward survey conducted or a document

executed by the contracting officer to not request

PAS? (FAR 9.106 and DLAD 9.106-1)

TAB NO. 28 EEO CLEARANCE

77. If the preaward survey report recommendation is not

followed, has the case been reviewed and concurred in by

the Chief of the Contracting Office? (DLAD 9.105-2(b))

78. If $1 million or more, was the equal employment

opportunity clearance report obtained? (FAR 22.805(a))

TAB NO. 29 BID/OFFER EVALUATION

79. Was evaluation conducted in accordance with

solicitation criteria? (FAR 15.305(a))

80. Was price considered where technical evaluation

is required? (FAR 15.304(c)(i))

TAB NO. 30 CAS COVERAGE

81. Is this a CAS-covered contract? (FAR 30.201-1)

82. If a Disclosure Statement is required, did the

contractor:

(1) Submit same?

(2) Execute a certificate of monetary exemption?

(3) Execute certificate of interim exemption?

(4) Execute a certificate of previously submitted

disclosure statement?

TAB NO. 34 UNSUCCESSFUL BIDS/PROPOSALS

83. Nonresponsive determinations reviewed and

concurred? (FAR 9.105-2)

84. Nonresponsibility determination in file?

(FAR 9.105-2(a))

85. Unsuccessful bids/proposals included in the file?

86. Were unsuccessful bidders/offerors notified

promptly? (DLAD 14.409-1(b)/FAR 15.503)

87. If small business determined to be nonresponsible,

was a certificate of competency obtained? If not,

why not? (FAR 19.6)

TAB NO. 35 MISTAKE IN BID/PROPOSAL

88. Does the file contain the administrative

determination required by FAR 14.407-3(e)/DFARS 214.407-3(e)?

89. Concurrence by counsel obtained? (FAR 14.407-3(f))

TAB NO. 36 DETERMINATION OF LATE BID/PROPOSAL YES NO N/A

90. Disposition of late bids/proposals adequately

documented? (FAR 14.304-3 and FAR 15.208)

TAB NO. 37 CONTRACT ANNOUNCEMENT

91. Was the $5 million Contract Announcement forwarded?

(FAR 5.303 /DFARS 205.303/DLAD 5.303)

TAB NO. 38 INDIVIDUAL CONTRACT ACTION REPORT

92. Is DD Form 350, Individual Contracting Action

Report, in the file? (DFARS 204.670-3)

TAB NO. 39 LOCAL CONTRACT REVIEW COMMENTS

93. Have all local CRO comments been addressed prior

to forwarding for HQ DLA review? (DLAD 1.690-7(b))

SECTION C - OTHER SUPPORT DATA

94. Was a subcontracting plan for Small and Small

Disadvantaged Business concerns obtained and approved,

if required? (FAR 19.702)

95. If a plan was not obtained, was a determination

made that subcontracting possibilities do not exist?

(FAR 19.705-2(c))

96. If royalty payments involved, did General Counsel,

HQ DLA concur? (FAR 27.204-1(b)/DLAD 27.000-90)

97. Should this item be referred to the Competition

Advocate?

98. Is the contractor on the "Parties Excluded from

Procurement Programs?" (FAR 9.405(b))

99. If a warranty provision contemplated, were the

criteria of FAR 46.7 considered?

100. If provision for progress payments contemplated,

is it appropriate? (FAR 32.501)

101. Were negotiations conducted with all responsible

offerors within a competitive range? (FAR 15.306(d))

102. Were offerors notified of any changes in the

Government's requirements? (FAR 15.206)

103. Were acknowledgments of changed requirements

confirmed in writing by offerors? (FAR 14.303 and 15.411)

104. Were proposals marked with the date and time of

receipt? (FAR 15.207(a))

105. Were requirements revalidated per DLAD 1.693?

106. Were the documentations required in DLAD 17.9307 included in the contract file?

TAB NO. 43 AWARD/CONTRACT AND CORRESPONDENCE

107. If the contract authorizes use of Government supply sources, are mechanisms in place to monitor appropriate usage? (DLAD 51.102(f)(1))

108. Was proper award document utilized (SF 26 - SF 33 - SF 1449)? (FAR 15.414)

109. Does contract agree in all respects with contractor's bid/proposal?

109. If single signature document, does it reflect contractor's letter/message amendments? YES NO N/A

110. Is arithmetic correct? (Extensions and totals)

111. Is contract being awarded within bid/proposal acceptance period? (FAR 14.408-1(a)/52.215-16(e))

112. Does the contract file contain the approvals required in 17.9304(b)(7)(vi)(A) and 52. 217-9006 for any exceptions taken?

113. Adequately funded? (FAR 32.702)

REMARKS:____________________________________________________________

______________________________________________________________________

(b) Contract review checklist - construction.

CONTRACTOR________________________ DOLLAR VALUE$__________________

CONTRACT NUMBER___________________ PROJECT_______________________

LOCATION___________________________

1. Does the contract meet the criteria for a construction YES NO N/A contract? (FAR 36.102)

2. Have funds been approved under provisions of the

annual Military Construction Appropriation Act? Is

any other funding source appropriate?

3. Were sealed bidding procedures used? (FAR 36.103(a))

4. Were specifications prepared in accordance with FAR

Part 11? (FAR 36.202)

5. Was an Independent Government Estimate prepared?

a. Was it prepared in as much detail as though the

Government were competing for award? (FAR 36.203(a))

b. Was it marked FOUO prior to bid opening and was

it filed with the other bids? Was the FOUO designation

removed after bid opening? (DFARS 236.203(c))

c. Was the Government estimate recorded on the

Abstract of Bids?

6. Did the advance notice and/or solicitation indicate

the estimated price range of the procurement? (FAR 36.204)

7. Was a liquidated damages clause included in the

contract? (DFARS 236.206)

8. Is a firm fixed-price contract anticipated?

(FAR 36.207)

9. Were appropriate arrangements made for prospective

offerors to inspect the work site and to have the

opportunity to examine data? Was a record kept of the

identities and affiliations of those who inspected the

work site? Did the solicitation contain a site

inspection provision?

10. Was a presolicitation notice issued? (FAR 36.302)

11. Was the presolicitation notice synopsized? (FAR 5.204)

12. Was a wage determination issued? Did the

specifications include same? (FAR 36.303(c)(1))

13. Was SF 308, Request for Determination and Response YES NO N/A

to Request, used to request an installation or individual

wage determination?

14. Are modifications to the DOL determination

time-date stamped?

15. If an amendment to the wage rate was issued,

were procedures for amending the solicitation followed?

16. Was adequate time allowed between issuing and

opening the solicitation? (FAR 36.303(a))

17. Did the solicitation contain all the information

required by FAR 36.303(c)(1) through (10)?

(a) wage determination

(b) clause at FAR 52.236-1, Performance of Work by

the Contractor

(c) magnitude of the construction

(d) period of performance

(e) site inspection arrangements

(f) information concerning facilities

(g) information concerning prebid conference

(h) special qualification or experience

(i) reporting requirements

18. Were the clauses prescribed by FAR 36.501 through

36.521, and DFARS 236.570 included, as appropriate?

19. Did the solicitation specify the requirement for

bonds, the penal sum for each bond, and the deadlines

for submitting acceptable bonds? (FAR 28.102-2 and 28.102-3)

20. Was an adequate bid bond submitted with the bid?

21. Are the bid bonds signed by an agent of an approved

corporate surety listed in the Treasury circular?

22. Was the original of the bonds submitted with the bid?

23. Are the penal amounts of performance and payment

bonds correct? (FAR 28.102-2(a)(1) and (b)(1))

24. Were bid bonds and performance and payment bonds

considered in the determination of responsibility?

25. Were performance evaluation reports used in making

the determination of responsibility? (DFARS 236.201(c)(2))

26. If prequalification was used, was the approval of

the HCA obtained? (DFARS 236.272)

27. If more than one item is subject to statutory

cost limitation, is a separate schedule provided.

Is the bid unbalanced? (FAR 36.205)

28. Does the notice of award include the information

prescribed by FAR 36.304? YES NO N/A

a. Identify the invitation for bids.

b. Identify the contractor's bid.

c. State the award price.

d. Advise contractor that required payment and

performance bonds must be promptly executed and returned

to the contracting office.

e. Specify the date of commencement of work,

or advise that a notice to proceed will be issued.

29. Are the prescribed forms for construction

contracts used? (FAR 53.236-1) (See also FAR 53.301-24,

53.301-25, and 53.301-25-A)

a. SF 1417, Pre-Solicitation Notice (Construction

Contract)

b. SF 1442, Solicitation, Offer and Award

(Construction, Alteration, or Repair)

30. If period of performance is more than one month,

are progress payments authorized?

31. Was the clause at DFARS 252.232-5 included for

progress payments? (FAR 32.111(a)(5))

32. Is a construction warranty clause approved for

usage? (FAR 46.710(e)(1))

33. Does the small or small disadvantaged business

concern meet the size standards of FAR 19.102?

34. Is the required insurance clause in the

contract? (FAR 28.3, 52.228-5)

35. Are specific affirmative action goals for the

geographical area established? If not known, have

instructions been requested from DIRECTOR, ACQUISITION MANAGEMENT (J-7)/DCMA-O? (FAR 22.804)

36. Has all Government-furnished property been

described in detail in the schedule?

37. Has the solicitation been totally set-aside for

small business and appropriate clauses included for

procurements estimated below $2 million?

(DFARS 219.502-2)

38. Have the potential offerors been allowed enough

time to submit bids? (i.e., 30 days minimum, or a

justification to reduce the bidding time made by the

contracting officer) (FAR 14.202-1)

39. If funds are contingent upon the availability of

another fiscal year funding, does the solicitation

contain the proper clauses pertaining to the Funds

Availability? (FAR 32.705-1(a))

40. Has a qualified COR/COTR been assigned?

TABLE OF CONTENTS

SUBPART 90.6 - GUIDANCE FOR CONTRACTING OFFICERS' REPRESENTATIVES

AND CONTRACTING OFFICERS' TECHNICAL REPRESENTATIVES

90.601 General.

This subpart provides Defense Logistics Agency (DLA) Contracting Officers' Representatives (CORs) and Contracting Officers' Technical Representatives (COTRs) a reference on many of the factors that surround their duties. Included are definitions of key terms, a brief summary of the environment in which the COR/COTR works, responsibilities of each of the participants in the acquisition process, and other information to assist CORs/COTRs in accomplishing their duties successfully. It is important for all to understand that this is only a guide. Recommendations on improving Subpart 90.6 may be provided to J-72.

90.601-1 Reserved.

90.601-2 Acquisition process in DLA.

The acquisition process in DLA consists of four phases: The requirements determination phase, the specifications/statement of work (SOW) phase, the contracting phase, and the contract administration phase. A brief narrative on these four phases follows. The length of time it takes to complete a project from beginning to end depends on the complexity of the project. In some instances a project can take several years.

(a) Requirements Determination Phase. The requirements determination phase begins with identification of a need. In this phase, boundaries for the project, milestones, and source selection procedures are established. If necessary, the acquisition planning team is formed during this phase to oversee the project. The acquisition planning team normally consists of customer and technical personnel, budget personnel, and a representative from contracting. Soon after this team is formed and funding is provided, the specifications/SOW phase begins.

(b) Specifications/SOW Phase. The second phase is the development of the description of needs. During this phase members of the acquisition planning team draft specifications, purchase descriptions or other similar descriptions, and/or a statement of work. Technical evaluation factors are developed and milestones are updated during this period prior to moving forward to the third phase, contracting.

(c) Contracting Phase. The contracting phase includes preparation of the solicitation, evaluation of offers, contract negotiation (if applicable), and award of the contract.

(d) Contract Administration Phase. This phase begins with award of the contract and includes: delivery of supplies, and/or completion of performance of services; and partial, progress, and final payments to the contractor; all administrative actions; and contract closeout denoting the end of the phase.

90.601-3 The contract.

A Government contract is a document containing the rights and responsibilities of both the Government and the contractor. For ease of reference, most Department of Defense (DoD) contracts are structured as follows:

Section Title

Part I The Schedule

A Solicitation/contract form

B Supplies or services and prices/costs.

C Description/specifications /SOW

D Packaging and marking

E Inspection and acceptance

F Deliveries or performance

G Contract administration data

H Special contract requirements

Part II - Contract Clauses

I Contract clauses.

Part III - List of Documents, Exhibits, and Other Attachments

J List of attachments

Part IV - Representations and Instructions

K Representations, certifications, and other statements of

Offerors or respondents.

L Instructions, conditions, and notices to offerors or respondents.

M Evaluation factors for award.

90.602 Specific information concerning CORs and COTRs.

90.602-1 Reserved.

90.602-2 Definitions.

(a) Contracting Officer's Representative (COR). The individual designated in writing by the contracting officer to act as the contracting officer's authorized representative to monitor specific aspects of the contract and take action as authorized in the letter of appointment. The COR, when one is appointed, acts as the point of contact between the contracting officer and the COTR assigned to the contract. COR responsibilities and limitations are established by the contracting officer.

(b) Contracting Officer's Technical Representative (COTR). The individual designated by the contracting officer to act as the contracting officer's authorized representative for technical aspects of the contract. The COTR reports to and assists the COR, when one is appointed, in providing technical oversight of the contractor's performance. COTR responsibilities and limitations are established by the contracting officer. In the event that a COR is not designated and only a COTR is appointed, the COTR shall report directly to the contracting officer.

90.602-3 Designation of the COR/COTR.

(a) The contracting officer may select and designate any Government employee, military or civilian, to act as the contracting officer's authorized representative as a COR/COTR on a contract subject to the authority and limitations outlined in the letter of appointment. In selecting an individual as an authorized representative, the contracting officer shall ensure that the individual possesses qualifications, training and experience commensurate with the authority which the COR/COTR will exercise. The individual’s program management skills should also be considered when nominating and appointing a COR. Initial COR appointments shall be prior to contract award. All CORs/COTRs shall complete approved training prior to being issued a letter of appointment (see DLAD 1.602-2(91(a) for recommended training). Local training coordinators should be consulted for sources of approved COR/COTR training courses.

(b) A COR/COTR shall be designated by name and position title. In accordance with 1.603-91(a) each designation of a COR/COTR shall be in writing and shall clearly define the scope and limitations of authority. The extent of the authority and limitations of the COR/COTR for each individual contract is determined by the letter of appointment from the contracting officer. Changes in the scope and limitation of authority may be made either by issuing a new designation or by amending the existing designation. When one COR/COTR is appointed for more than one contract, separate designations shall be issued for each contract. A copy of each appointment letter shall be forwarded to the applicable payment office(s) when the COR/COTR is authorized to certify invoices for payment. This copy shall be annotated with the COR/COTR's address and telephone number if this information is not readily apparent in the letter.

(c) A designation of a COR/COTR shall remain in effect through the life of the contract unless revoked by the contracting officer, the contracting officer's successor, or in the event of reassignment of the individual designated.

(d) The contracting officer shall be notified immediately in writing, by the COR's/COTR/s immediate supervisor, if the individual appointed as COR/COTR is transferred, reassigned, will be absent for an extended period, or is otherwise unable to fulfill the responsibilities of the position.

90.602-4 Responsibilities of the COR.

(a) Planning. The individual rights and obligations of both the contractor and the Government should be clearly established by the contract terms. Often the action of one party to the contract affects the other party; therefore, planning is necessary before performance begins to integrate the actions of both parties. For example, if the contract specifies that property or services are to be supplied by the Government, the COR must ensure delivery of such Government-furnished property or services. The Government's responsibility for other actions such as the approval of plans, comments on draft reports, performance of tests and evaluation, and provision of technical information to the contractor requires the Government to share in the responsibility for contract completion. The Government must be responsive and act in a responsible manner. Delays or omissions by Government personnel in performing reviews, giving approvals or disapprovals, or furnishing required information may entitle the contractor to an equitable adjustment as provided for in the contract.

(b) General Responsibilities. Responsibilities of the COR vary with the type of contract and complexity of the acquisition. For a contract of any complexity, the COR has many duties, including: monitoring of progress and performance by the contractor, controlling of Government property and facilities, where necessary, recommending contract modifications and terminations, certifying receipt of supplies/services, and accomplishing other tasks required by the contract or the contracting officer. In fulfilling the responsibilities, the contracting officer shall require the COR to:

(1) Read and maintain a copy of the contract provided by the contracting officer together with contract modifications which may be issued;

(2) Become thoroughly familiar with the terms and conditions of the contract to assure compliance with the provisions contained therein; and

(3) Promptly inform the contracting officer of any delay in the progress of work or any problem encountered that may require a contract modification or other administrative action.

(c) Specific Responsibilities. Each contract must be treated on an individual basis, because it may place responsibilities on the COR unique to that contract. Specific responsibilities that CORs perform on nearly every contract are addressed below, but no list could be all-inclusive. CORs should note specific responsibilities outlined in the COR/COTR letters of appointment and pay particular attention to limitations on their authority.

(d) Monitor Technical Compliance. The COR must ensure that the contractor complies with all technical requirements of the contract, including the submission of required reports or other documentation. In this function the COR shall:

(1) Notify the contracting officer of potential or actual performance problems and recommend remedial action. If verbal notification is given to the contractor, the COR shall follow this up in writing to the contracting officer. COTRs have a corresponding duty to inform CORs.

(2) Assist in meeting the Government's contractual obligations to the contractor. This includes, but is not limited to, arranging to supply Government-furnished equipment, facilities, and services called for in the contract and providing timely Government comment on, or inspection/acceptance of, draft/final contract deliverables if required by the contracting officer or contract. Section E of the contract provides information on inspections and acceptance. In the case of purchase orders, the body of the order contains this information.

(3) Report any instance of suspected conflict of interest or fraud, waste, and abuse to the local Office of General Counsel that supports the contracting officer.

(4) Inform the contracting officer in writing of any needed change in the scope of work in the contract so that a modification may be issued, as appropriate.

(5) Report all unacceptable deliverables. If the work is deemed unsatisfactory, the COR shall report all deficiencies in writing to the contracting officer who will determine what further actions are required.

(6) Report all acceptable deliverables. The COR shall provide written notification to the contracting officer when the contractual requirements have been fulfilled and are technically acceptable. The evaluation of contractor performance may be documented on either a DD Form 250, a letter of acceptance, or the verification of receipt on a commercial invoice. The verification of receipt on the invoice or on the DD Form 250 is the most common form of documenting acceptance. These documents also serve as instruments in making payment. The disbursing office (the office that pays the contractor) will be identified in the contract. A copy of the contract and records of any payment made on the contract will be on file at that disbursing office. Although contractors send invoices directly to the disbursing office, the disbursing office will not make payment without the signature of an individual authorized to certify that the invoice is proper. It is the COR's responsibility to certify that the services/supplies have been received and are acceptable.

(7) Provide technical interpretation of the requirements. As previously discussed, the COR must have a thorough understanding of the requirements of the contract. It may become necessary to provide technical interpretation to the contractor for some portion of the work. The COR is encouraged to call upon other technical personnel to assist COTRs for this purpose. Where there is no appointed COTR, the COR is authorized to provide the assistance to the contractor on technical matters within the scope of the contract. Any technical assistance given to the contractor by the COR/COTR should be documented in the contract file. For significant matters, the information should be provided to the contractor in writing. The COR shall notify the contracting officer immediately whenever the contractor disagrees with or refuses to comply with any technical aspects of the contract as interpreted by the COR. The contracting officer shall provide final resolution in cases of disagreement between the COR/COTR and the contractor.

(8) Request deobligation of excess funds. A contracting officer who is not located at the place of performance may not be aware of contingencies which develop during the life of the contract and may require the deobligation of funds. The COR who is certifying receipt of supplies/services can compare expenditures with funds obligated on the contract. The procedure for requesting the deobligation of funds is to notify the contracting officer by letter that there are excess funds on the contract. Funds can be deobligated from a contract only by a contract modification signed by the contracting officer. The modification will inform the Comptroller that money has been deobligated and, therefore, can be decommitted.

90.602-5 Responsibilities of the COTR.

(a) General Responsibilities. The general responsibilities of the COR and COTR are similar, but the COTR reports to the COR, and the COR reports to the contracting officer, when appointed. The COTR's function is to act as the technical advisor to the COR when appointed. When a COR is not appointed, the COTR reports directly to the contracting officer.

(1) Assure that the COR has an understanding of individual responsibilities and working arrangements. Such discussions are necessary immediately after appointment and are appropriate at any time during the period of contract performance;

(2) Arrange a schedule with the COR to monitor contractual requirements. The contracting officer must be promptly informed of delays in progress of work and of any problem encountered that may require a contract modification or other administrative action;

(3) Become knowledgeable of the duties and functions of the COR; and

(4) Inform the COR of any disagreements with the contractor regarding technical interpretation of the contract.

(b) Specific Responsibilities. The specific responsibilities of the COTR will vary with each contract. COTRs should become familiar with all responsibilities outlined in the COTR letter of appointment and with the limitations on their authority. If authorized by the contracting officer, it is the COR's responsibility to determine when the work is complete and conforms with the technical requirements of the contract. However, the COTR will often be delegated this responsibility when technical expertise is needed. The COTR is not authorized to execute DD Form 250 or any other formal written acceptance unless the COTR has been specifically designated the authority to do so in writing. The COTR may be required to assist the

COR with inspections or evaluations required by the contract.

90.602-6 Limitations on the authority of the COR/COTR.

(a) The authority vested in a COR/COTR is subject to the following limitations: The COR/COTR is not empowered to sign any contract, including delivery orders, purchase orders, or communication service authorizations (CSAs), or to modify a contract, or in any way obligate payment of funds by the Government. The CORs/COTRs may not take any action which may have an impact on contract or delivery order schedules, funds, or scope of work. All contractual agreements, commitments or modifications which involve prices, quantities, quality, or delivery schedules shall be made only by the contracting officer.

(b) While the COR/COTR limitations can be simply stated, assuring that the COR/COTR does not exceed the authority granted is much more complex. In the course of performing COR/COTR responsibilities, situations may result in an implied change to the contract which, in turn, may impact the delivery schedule, funds, or other areas outside the authority of the COR/COTR. These examples illustrate that the COR/COTR may exceed the scope of their authority by inaction or improper action. Two examples illustrate this point.

(1) Example 1: A user calls a COR and states that there is an insufficient number of copies of documentation delivered by the contractor. Certainly, it is within the realm of the COR's authority to advise the contractor that the required number of deliverables were not shipped/received. The COR notifies the contractor that additional copies must be provided to satisfy contractual requirements. The contractor delivers the quantity of documentation in accordance with the COR's instructions and submits an invoice for extra copies of the documentation. It is then discovered that the contractor had originally delivered the number of copies required by the contract. The COR's failure to review the contract prior to requesting additional copies has caused the COR to proceed beyond the authorized limitations and created a situation in which the Government may have to pay for the additional goods through ratification of the COR's unauthorized act. Further, the COR could incur a personal liability even though the COR may not have taken action which could be binding on the Government.

(2) Example 2: An individual is designated as COR on a contract for the installation of equipment. The equipment is scheduled for delivery the next month. The COR sets up a COR file and places the file in the filing cabinet after noting the scheduled installation date on the calendar. The installation day arrives, and the contractor, as promised, arrives with the equipment. However, it cannot be installed because the COR did not insure that the Government had done its part by installing an electrical outlet and raised floors. By inaction, the COR has allowed a potential claim to be made for Government-caused delay. In summary, the COR/COTR is not authorized to:

(i) Alter the contract in any way, either directly or by implication;

(ii) Issue instructions to the contractor to start or stop work. Only the contracting officer may do this;

(iii) Order or accept goods or services not expressly required by the contract;

(iv) Render a decision under the Disputes clause;

(v) Authorize delivery or disposition of Government property not authorized by the contract; and

(vi) Discuss acquisition plans or provide any advance information that might give one contractor an advantage over another contractor in forthcoming procurements.

90.603 COR/COTR files.

90.603-1 Contents of the COR/COTR files.

(a) The COR/COTR is required to document all actions taken in regard to the contract. To the extent that contractual documents and correspondence do not explain all actions taken, suitable records must be prepared promptly and placed in the official COR/COTR file. The importance of maintaining complete and orderly files cannot be overemphasized, and it is critical to transfer of responsibility if the COR/COTR is changed during the term of the contract.

(b) As a matter of practice, the COR holding discussions or conducting business with contractors shall prepare Memoranda for Record (MFRs) of meetings, trips, and telephone conversations relating to the contract. Each MFR, other similar records, and correspondence relating to the contract shall cite the contract number. A copy of all actions or correspondence shall be furnished to the contracting officer and all other interested parties having a need to know. Documents that may contain contractor proprietary data or other business-sensitive information should not be released outside the Government without approval of the contracting officer.

(c) Duplicate copies of file documents shall be destroyed as soon as they have served their purpose, but in no event shall such documents be retained for longer than 1 year after acceptance of the final deliverable under the contract.

(d) Records pertinent to unsettled claims for or against the United States, open investigations, cases under litigation, or similar matters shall be preserved until final clearance or settlement of the matters even though retention of these records may exceed a period longer than 6 years and 3 months after final payment.

(e) CORs shall forward any correspondence received from the contractor to the contracting officer.

90.603-2 Required documents.

The following documents are required for the effective performance of COR/COTR functions and to establish the official COR/COTR file. Both the COR and COTR keep separate files of their own.

(a) Contract and modifications thereto;

(b) COR/COTR letter of appointment and any correspondence from the contracting officer which amends the letter of appointment;

(c) For CORs, the names of technical and administrative personnel (e.g., COTRs);

(d) Documentation indicating that the COR/COTR has attended a briefing by the local Office of Counsel on the applicable conflict of interest information included in DoD Directive 5500.7-R, Joint Ethics Regulation; has filed an OGE 450 report annually (if they are classified as a Confidential Filer as defined in DLA ETHICS POLICY LETTER 2008-1; and has completed ethics training annually.

(e) Records of COR/COTR inspections and all receiving and acceptance documents;

(f) Correspondence to and from the contracting officer and the contractor;

(g) Memoranda of phone conversations, meetings, and discussions relating to the contract;

(h) Progress reports;

(i) Inspection and evaluation reports; and

(j) Any other document pertaining to the contract.

90.603-3 Disposition of completed COR/COTR files.

Since the COR/COTR is an authorized representative of the contracting officer, the COR's/COTR's records are a part of the official postaward contract files and shall be forwarded to the contracting officer for retirement with the official contract file upon completion of the contract. Documents which pertain to the contract shall be clearly identified when forwarded to the contracting officer.

TABLE OF CONTENTS

SUBPART 90.7 - DAR CASE FORMAT

90.700 Scope of subpart.

This subpart prescribes a uniform structure for all cases submitted to the DAR Council for formal consideration.

90.701 Purpose.

The case format serves two important functions. First, the prescribed structure for presenting the proposed case provides a very useful and clear exposition of the issues to assist the DAR Council in considering cases in a timely and efficient manner. By clearly setting out how the current regulations are perceived to be inadequate and the specific changes that will remedy the described situation, the case structure minimizes misunderstandings and helps avoid the delay that necessarily results when additional information or clarification is required from the party initiating a case. Second, the mandatory minimal information is necessary to comply with various Federal statutes, Executive Orders, or higher level regulations that require those who propose rules, either initially or by way of revision to existing regulations, to analyze and attempt to mitigate the burdens which the proposed rules may place on the public in general, and small businesses in particular. The case format appropriately places initial responsibility for identifying and considering those burdens on the party proposing that the FAR or DFARS be amended. For these reasons, cases that do not follow the prescribed format will be returned with appropriate guidance to the initiator.

90.702 Case format.

Every DAR case recommending an amendment to the FAR or the DFARS will consist of at least two parts: The statement of the case, and the two essential attachments discussed at 90.703-2. The initiator should provide any additional attachments or other documents which would be helpful to a more complete understanding of the issues.

90.703 Case statement.

The statement of the case shall be in the form of a memorandum, without signature block, to the Director, DAR Council; be in the format of: I. Problem; II. Recommendation; and III. Discussion, and be forwarded via a cover letter signed by the chief of the contracting office to HQ DLA, ATTN: J-71.

90.703-1 Problem section.

The Problem section should succinctly discuss an existing problem in the procurement process. A simple statement that some part of the FAR or DFARS should be changed, however, is not an adequate description of a problem upon which the DAR Council will act. As the foundation for every DAR case, the statement of the problem should convey as accurately and completely as possible the factual or legal reasons necessitating regulatory revision.

90.703-2 Recommendation section.

The Recommendation section consists of two elements: Citation of the specific language to be added, deleted, or revised in the FAR or DFARS (TAB A of the DAR case memorandum), and citation of certain documentation responsive to four collateral requirements mandated by Federal statutes, Executive Orders, and higher level regulations (TAB B of the DAR case memorandum). TAB A shall set forth as much of the pertinent section or paragraph of the FAR or the DFARS as is necessary to show the desired change in context. The language to be added should be enclosed in brackets and any deletions should be shown as lined through. TAB B shall contain the elements described as collateral requirements.

90.703-3 Discussion section.

The Discussion section should provide any background information, including prior DAR cases that are relevant to the current issues, which will assist the DAR Council in understanding the problem. This section should also demonstrate clearly how the recommended revisions to the FAR or DFARS will solve the problem identified. While the discussion should be succinct and to the point, if the initiator believes the recommendations may have side effects or disadvantages that are pertinent to the DAR Council's consideration, these should be addressed. Though the FAR and DFARS iterates the policy not "...to stifle the development of new techniques or methods of procurement," cases should not be proposed which cannot be justified in terms of administrative effort or expenditure of Government resources. Accordingly, the Discussion section of the case shall include a justification that considers the full operations of the regulatory process, including HQ DLA review, committee analysis, DAR Council analysis, CAA Council analysis, publication for comment and review of comments, and other applicable steps.

90.704 Deviations.

Requests for approval of a class deviation shall contain Problem, Recommendation and Discussion sections that adequately demonstrate a need for, and estimate the duration of, the deviation (see 90.703), and be forwarded to HQ DLA, ATTN: J-71, via a cover letter signed by the Supply Chain HCA (unless delegated to the CCO) or the CCO for those DLA organizations with J-7 serving as the HCA. In addition, DFARS 201.402(3) prescribes certain specific types of information which must be supplied in support of any requested deviation.

Deviation requests should be written as persuasively as possible. Initiators should address the regulation as it is currently written and specify what needs to be changed to institute or to continue their required practices; describe the peculiarities of their situation that make the deviation necessary; what alternatives have been tried or considered to avoid the deviations; and why the deviation is the best choice. In the case of extension requests, either propose a permanent change or describe efforts made to alleviate the need for the deviation.

TABLE OF CONTENTS

SUBPART 90.9 - UPDATING SMALL DISADVANTAGED BUSINESS STATUS

AND WOMEN-OWNED BUSINESS STATUS IN THE DD 350

90.901

SUBPART 90.10 - ADMINISTRATION OF DLAD

90.1001 Administration and explanation.

The administration and explanation of the DLAD is the responsibility of the Executive Director, Acquisition Management , HQ DLA, J-7.

TABLE OF CONTENTS

SUBPART 90.11 - ACQUISITION PLANNING

90.1101 Contents of written acquisition plans.

90.1101(Paragraphs are numbered to conform with coverage at FAR 7.105 and DFARS 207.105.)

(a) Acquisition background and objectives.

(1) Statement of need. The statement of need shall include:

(i) The nomenclature, a brief nontechnical description, and general statement of use or purpose the acquisition is intended to satisfy.

(ii) Identification of requiring activity.

(iii) A statement as to whether or not the supplies are stocked.

(iv) The technical and contractual history.

(A) The history shall include a description of efforts to:

(1) Facilitate the use of commercial items (e.g., removing unnecessarily restrictive features of requirements documents).

(2) Obtain/acquire/develop a complete technical data package free of proprietary rights suitable for full and open competition; or

(3) Have restrictive features of specifications removed; or

(4) Develop a clear, unambiguous statement of work.

(B) Contract performance history for the same or similar supplies or services, e.g., name(s) of contractors(s), type of contracts, dollar value, degree of competition, acquisition authority, award date, unit price, contractor size status, contractor performance history (including delivery and quality performance) and significant problems encountered (customer complaints, nature of protests or Congressional inquiries).

(v) Discussion of previous APEC reviews.

(3) Cost. Provide the estimated dollar value of the acquisition, the quantity proposed to be acquired, and the anticipated unit price.

(4) Capability or performance. Discuss the basis for the decision to use the requirements document(s) being used for this acquisition. Provide a copy of the requirements document(s) to be used. Discuss commercial equivalency. If interim requirements documents descriptions are proposed, provide estimated completion date and any pertinent industry comments to date. Discuss previous problems with requirements document(s) and efforts made to resolve those problems.

(5) Delivery or performance-period requirements. Provide estimates of production lead times. Describe whether supplies or services are required by specified times to support other supplies, services, systems, or program requirements. Describe management considerations of the supplies, as appropriate, e.g., depot capabilities, stock rotational requirements, and shelf life. Describe production surveillance reporting requirements. If the acquisition is structured with a base and/or option period of performance greater than one year that includes more than one year’s worth of requirements in that base and/or option, describe the results of the analysis required by DLAD 17.104(a) identifying benefits of recommended period of performance length and associated guaranteed minimum quantities (if applicable).

(b) Plan of action.

(1) Sources.

(i) Discuss the nature, extent, and results of the market survey and any market research performed or requested in support of the acquisition strategy developed. For Long Term Contracts, confirm that market research was conducted by ISTs and SMSGs to determine availability of surplus material; and that, if market research indicated all or a portion of the recommended buy (RB) quantity of an item was available as surplus material, the RB quantity for that item was reduced by the quantity that was available as surplus and the quantity removed from the LTC was acquired separately, using whatever procedures were appropriate to the circumstances (e.g., competitive solicitation, emergency support procedures for high priority requirements, etc.)

Also confirm that additional business rules for LTCs were followed (see Procurement Business Rule for Long Term Contracting, which can be accessed at https://polh.bsm.dla.mil/). A lso see FAR Part 10 and state whether the acquisition will be conducted under FAR Part 12). Conduct and report the results of bundling or consolidation analysis, as appropriate; see sections 7.107, 7.170, and 10.001.

(ii) Discuss applicability of socioeconomic requirements, e.g., small business set-asides, 8(a), and small disadvantaged business, HUBZone or service-disabled veteran-owned small business contracting, and results of discussions with Small and Disadvantaged Business Utilization representatives, including any conclusions as to whether the proposed action constitutes a bundling or consolidation of contract requirements, and whether bundling or consolidation analysis has been or will be conducted. Also consider use of such sources as Javits-Wagner-O'Day Act- (“ABILITYONE”-) qualified agencies for the blind or other severely disabled. Discuss any pertinent foreign purchase/sales matters. Discuss applicability of progress payments, economic price adjustments, bid guarantees, or performance bonds.

(2) Competition.

(i) Discuss alternative supplies, services, systems or programs which could be acquired using full and open competition if use of full and open competition is not planned. If appropriate, discuss the tradeoffs of use of such substitutes in terms of price differences, quality, and acquisition and production lead time. Discuss alternative acquisition strategies hich have been considered or could be used to provide for increased competition.

(90) Describe the Activity Competition Advocate's (see FAR 6.5) actions to date relative to the supplies/services proposed to be acquired including: description of efforts to have restrictive aspects of specifications, technical data, or statements of work revised/deleted; a summary of discussions with the Military Departments, or other requiring activity, and industry relative to alternatives to increase competition. Discuss feasibility of use of full and open competition with exclusion of a source to establish an alternative source or sources (FAR 6.202(a)).

(91) Describe strategies for developing/achieving competition for current and future acquisitions.

(92) Identify sources to be solicited. Discuss efforts/plans for developing or locating additional sources, including discussions with industry, trade associations, use of presolicitation notices, and advance notices in the Commerce Business Daily or Federal Business Opportunities (“FedBizOpps”).

(93) Include the Activity Competition Advocate's comments on the plan.

90.1101

90.1101(supplements FAR 7.105(b)(4)(i))

(b)(4)(i) When discussing contract type selection, address any use of Time and Material/Labor Hour clins or contract type and clearly show why no other contract type can suffice for the requirement. Discuss strategy to migrate T&M/LH use to other contract types and contract administration measures for mitigating risk.

(5) Budgeting and funding. Describe the type of funds, stock funds or operations and maintenance funds, which are proposed to be used for the acquisition.

(13) Logistics considerations.

(i) Depot, ICP, DCMA, and Military Service Component Impact Statement. As part of acquisition plans, attach copies of Depot, DLA ICP, DCMA, and Military Service component impact statement(s) which address the downstream effects of implementing prime vendor arrangements, direct vendor delivery, vendor managed inventory or any other strategy that affects depots traditional functions, or workload/resources at DLA ICPs, DCMA organizations, or Military Service components.

(A) If possible, this effect should be quantified in terms of the number of NSNs that will no longer be processed by the depots, the amount of storage space that will become available for other uses, and the timeframe over which these items will no longer be shipped to depots (show number of NSNs for each time period). The decision to convert to DVD should be explained as being economically sound for the ICP/Agency (including quantitative justification), or required as a performance objective of the acquisition and resultant contract, (e.g., because the customers delivery requirements dictate DVD support), or as contributing to Agency success in achieving goals set by Congress, OSD, or other policy-making entities.

(B) Additionally, acquisition plans should list any FSCs or NSNs included in the proposed contracting instrument that are assigned for management by an ICP other than the one executing the contract, and provide documentation that the other DLA Center(s) is aware of the proposed contract coverage, timetable, and inventory drawdown. An explanation of the reasons for including the NSNs in the proposed contract should be provided (i.e., natural/traditional fit within the industry, allows total logistics support to a particular customer, etc.). Plans should also address whether Center resource managers and union representatives have been apprised of any potential workforce implications. Acquisition plans should address/include plans for accommodating any potential workforce impact (e.g., retraining).

(C) Plans should include an assessment of potential impact to Military Service component(s) and verification that the Service has been apprised of this potential impact.

(ii) Describe requirements for use of, or plans to use, qualified products lists, qualified manufacturers lists, or other qualification requirements (see FAR Subpart 9.2). Provide the number of products/sources on such lists. Describe plans for qualifying additional products/sources. Discuss methods to be used to determine quality/compliance with requirements, e.g., first article test requirements, production test, in-process surveillance, inspection and acceptance criteria, or any other special test requirement. Discuss alternatives to the above and criteria for waiving same. Describe production surveillance and any production progress reporting requirements. Describe any requirements for certification, licensing, or approval by Government control agencies. Discuss any use of Certificate of Conformance or Certificate of Quality Compliance.

(iii) Explain the nature of patents, copyrights, or proprietary data. Identify plans to acquire rights to data.

(90) Describe phase-out and disposition plans for any current or due-in stocks for supplies being replaced.

(91) Include projected annual requirements, stock levels planned, feasible alternatives to those levels, and acquisition cycle. Describe mobilization requirements, if applicable. (See Subpart 17.93)

(14) Government-furnished property. Discuss the rationale for use of any Government-furnished material (GFM).

(15) Contractor use of Government supply sources. For contractor(s) authorized use of DLA-managed supply sources, describe the diversion control mechanism(s) in place to ensure access is limited to authorized items in authorized quantities, and contractor use of DLA supplies is proper. (DLAD 51.102(f)(1).)]

(16) Environmental and energy conservation objectives. Discuss any environmental considerations. Include DLA Form 1664, Record of Determination - Environmental Evaluation, to indicate whether an environmental document is required in accordance with DLAD 1000.22, Environmental Considerations in DLA Actions in the United States. Contracting actions involving significant quantities of toxic and hazardous chemicals, pesticides, radioactive items, fossil fuels, or animal products made from endangered species are not categorically excluded under DLAD 1000.22 and require preparation and submission of an environmental document to accompany the acquisition plan.

(18) Contract administration. Plans should include an assessment of potential impact to DCMA workload and identify the milestone date by which DCMA will be apprised of this potential impact (e.g., no need for quality assurance representatives (QARs) where there was previous need, no DD250s to be processed for acceptance, etc.). This date should allow DCMA sufficient time to plan for any resource impact.

(19) Other considerations.

(B)(1) Explain how the acquisition addresses definition of S&S requirements, the contractor’s development of capability to meet S&S requirements, and ability to test (i.e., validate) that S&S capability. Provide the basis for development of the surge and/or sustainment requirements. If surge and/or sustainment requirements are not included, provide basis for their exclusion, and identify the alternative means of obtaining surge and/or sustainment capability. Identify potential need for industrial preparedness funds for S&S solutions, the approach for handling S&S investments at the end of the contract, and whether the surge investments will be considered Government property. If S&S items will be added after award of the contract, address definition of S&S requirements, contractor’s assessment of S&S capability, and S&S testing for the added items. Provide all language concerning S&S to be used in soliciting concepts or proposals (i.e., BAA, addendum to BAA, RFP).

90.1102 An illustrative acquisition plan format is provided as follows:

ACQUISITION PLAN

PR/MIPR Number:..............Date Received:.............Buyer:............

Item Description:.............................Delivery Schedule:..........

Quantity:........Est. Unit Price:................Est. Total Price:........

Supply Criticality (Priority):...........................................

Purchase History

Date Quantity Unit Price Method of Acquisition Competitive Offers

____ _______ __________ Sealed Bid____ Neg____ No.____$Range_____

Considerations

100% Partial None Partial None

Set-Aside: Small ...... ....... ...... ....... .....

Business

Small Disadvantaged

Business ..... ....... ......

Quantity/Period Option: (% or period) Price Escalation: %

Progress Payments: prior buys (Y or N) current buy (Y or N)

First Article Test: _______

Request for Exception Not Required

Cost/Pricing Open

Data: ............. ................ ........... Contracts:....

Warranty: ....Yes ....No GFP Involved: ....Yes ....No

Proposed Method of Acquisition

a. Sealed Bid ..................

b. Negotiation .............. Written ...............Oral................

Rationale for Not Using Sealed Bidding:

/ / Time does not permit solicitation, submission, and evaluation of sealed bids.

/ / Award will be made on a basis of other than price and other price-related factors alone.

/ / It is necessary to conduct discussions with offerors about their offers.

/ / A reasonable expectation of receiving more than one sealed bid does not exist.

Type contract/order contemplated.___________ If fixed-price with economic price adjustment, specify EPA clause number/title __________________________________________ and (if applicable) index source, number, and name ___________________________________________. If Time and Materials/Labor Hours, discuss why no other contract type is being considered.

Market Survey Results

Discuss nature and results of market survey: _____________________________

__________________________________________________________________________

__________________________________________________________________________

Market Research

Discuss purpose, nature, extent, involved personnel/offices and results/status and estimated completion date of any market research initiated/to be initiated in support of the instant purchase request or anticipated future requirements (see also FAR and DLAD 10.001 and 11.004):

______________________________________________________________________

______________________________________________________________________

______________________________________________________________________

Provision for Competition

a. Complete, unrestrictive technical data package to be included or referenced in the solicitation. _____ Yes _____ No

b. Full and Open Competition..........................................

c. Full and Open Competition After Exclusion of Sources ..............

d. Other than Full and Open Competition ........ 10 U.S.C.2304(c)........

(Except for acquisitions conducted under category c. above, when the response to a. is "No," the acquisition is other than full and open competition and a justification for other than full and open competition is normally required (see FAR Subpart 6.3). No justification is required for small business set-asides (see 6.203(b)(90)).

Schedule: Date:...............

Issue Solicitation

Open/Close

Solicitation Evaluate/Review

Award

Remarks:

Signature Buyer: ............................... Date: .............

Signature Approving Official:.................... Date: .............

90.1103 Advance Acquisition Planning Template.

Proposed acquisitions meeting the criteria/thresholds at 7.104-91(a) must be summarized using the Advance Acquisition Planning Template below and submitted electronically to the DLA Supplier Operations Branch (J-72) for review. Responses to this submission will be provided within 15 calendar days after receipt.

Template questions that do not apply to your activity should be answered as not applicable (N/A). If further detail is required, provide it at the bottom of the template.

All templates requiring review/approval at DLA HQ must be approved by the Chief of the Contracting Office and coordinated with the contracting activity’s Associate Director of Small Business and Office of Counsel. (The local coordination and approval will be documented by filling in the associated names and dates corresponding to the coordination and approval at the bottom of the template).

90.1103 [Advance Acquisition Planning Template.

…

Category ("X" the proper category): Tailored Logistics Support Contract (PV____, MPV____, other TLSC____); DVD____; Corporate Contract____; Strategic Supplier Alliance____; Electronic Catalog___; Long Term Contract____; Multi-Year Contract _____; Time and Materials (or clins included)____;Other_____.

Describe the initiative, primary customers, and what is being contracted for:

2. Reason for Initiative:

3. Identify any unique aspects of this initiative:

4. Contract Type: _______ Anticipated Award Date: (MM/YY) ______Sol Issuance Date:__________

5. If Time and Materials/Labor Hours (or clins included), discuss history, frequency, and definiteness of this requirement, such that another contract type may suffice. If none do, discuss strategy to transition to other contract type over time and contract administration measures for mitigating risk.

6. Dollar value if other than LTC: _________________. For LTC, complete chart below:

LTC Contract | Base Period | Option Period(s) | Total $ Value
Length |  |  |
Estimated Dollar Value |  |  |
Guaranteed Minimum Dollar Value |  |  |

7. Competition ("X" one): Full & Open____; Other than full & open (cite authority) ______.

8. Describe the performance metrics: what are they; how will they be measured; how often will they be measured; who will measure them; and what is the expected outcome.

9. Has your activity previously purchased the item(s): Yes __No__

10. Acquisition will be conducted using FAR Part 12: Yes___ No____

11. Basis for Commercial/Non-commercial determination: _____________________

12. Number of NSNs/Part Numbered (PN) Items: ________

13. Are NSNs/PNs: Competitive ________ Non-competitive______ Some of each _______

14. Number of items previously provided by small business: ________

15. Nomenclature & Quantity:

16. Delivery Requirements:

17. Will any supplies be delivered to stock? Yes ______ No ________

18. Describe market surveys and/or market research conducted and the results:

19. Planned evaluation strategy:

20. What are the logistical benefits of this initiative? (e.g. reduced ALT/PLT; reduced inventory; reduced customer wait time (CWT); increased supply availability; improved readiness; added contractor services such as forecasting, inventory management, quality; reduced manual PRs (touch labor)

21. Describe planned efforts to reduce PLT (e.g. using common-process parts groupings, arranging for access to long-lead time materials/ components, setting PLT reduction goals, etc.)

22. In addition to publicizing the acquisition to the general public (e.g. via FebBizOpps, Internet notice, etc.), describe planned efforts to solicit responses from HUBZones, women-owned small businesses, small disadvantaged businesses, and service-disabled veteran-owned business concerns.

23. Was any portion of this requirement considered for placement in the 8(a) program? If not, why not?

24. Was any portion of this requirement set aside for small businesses? _______________

25. If no portion is set aside for small business, why not? ___________________________

26. Describe incentive strategies that will be used to evaluate offers or that encourage prime contractors to establish subcontracting opportunities with small businesses:

27. Describe how surge and sustainment (S&S) will be addressed.

_____________________________________________________________________________________

28. Provide a statement that addresses each of the following concerns, if applicable. If information is not yet available, identify whether these issues will be addressed in the acquisition plan:

a. Potential workload/financial impact at other ICPs, and affected field activities such as DDC.

b. Contract management strategy and workload impact:

c. Quality/engineering/technical issues:

d. Effect on all military services, in addition to the primary customer:

Contracting Activity:

Coordination: ___________________________

Office of Counsel

Coordination: ___________________________ _______

Director of Small Business Date

Approved: __________________________ _______ Chief of the Contracting Office Date

Date received in J-72 (mm/dd/yy) ___________

Approved: Yes ____ No _____ HQ DLA/J-72: _________________ Date: __________

TABLE OF CONTENTS

SUBPART 90.12 - POSTAWARD PRICE REVIEWS

90.1201 Simplified acquisition price review program.

(a) Defense Supply Centers shall perform a monthly postaward price analysis of 60 line items from separate awards, selected from the total universe of the previous month's central simplified acquisitions (excluding purchases by secondary and tertiary field activities). The review shall be performed by the DSC Cost and Price Analysis Element. The purpose of this program is to identify significant and/or repetitive overpricing and to take corrective action as may be required including feedback on contracting deficiencies noted during the reviews. When an unreasonable price is indicated, appropriate action to resolve the overpricing shall be taken, including action pursuant to Subpart 42.71, if applicable. A review of an item is to be deemed completed only when a determination has been reached that overpricing: (1) did not occur; or, (2) did occur, and a refund has been collected and processed; or, (3) did occur, but all efforts to obtain a refund were unsuccessful, and a decision has been made that no further action is warranted. Other steps, such as initiating action for competitive acquisition of previously sole source items and/or revision of specifications, shall also be accomplished as needed.

(b) A record of postaward price analysis results, including the information necessary to provide summary data contained in the following format, shall be maintained by the Cost and Price Analysis Element.

SIMPLIFIED ACQUISITION POSTAWARD PRICE REVIEW PROGRAM

Defense Supply Center________________

Report for the _____________ Period FY 200 __

I. Review Reconciliation: Number

A. Beginning Balance Reviews in Process:

B. Reviews Initiated During Quarter:

C. Reviews Completed During Quarter:

D. Ending Balance Reviews in Process:

II. Completed Reviews (from I.C. above): Automated Manual

A. Number Determined Not Overpriced:

B. Number Determined Overpriced:

C. Number for Which Sufficient Price Data

Could Not Be Obtained to Make a Determination:

III. Corrective Action (from II.B. above): Number Savings

A. Price Reductions:

B. Refunds:

C. Cancellations-Repurchases:

D. Other (Specify, e.g., action initiated for

competitive acquisition, commercial alternate

found, action initiated to revise

specifications.):

TABLE OF CONTENTS

SUBPART 90.13 - STREAMLINED SOLICITATIONS FOR ENERGY CONTRACTS

(DEVIATION)

90.1300 Scope of Subpart.

On 28 June 1990, the then Deputy Assistant Secretary of Defense (Procurement) approved as permanent DLAD coverage the Defense Fuel Supply Center (DFSC)(now the Defense Energy Support Center, DESC) deviation request to use streamlined solicitations for petroleum and coal acquisitions. Under the deviation DESC is permitted to omit a variety of clauses and substitute tailored clauses for other clauses normally required by FAR and DFARS.

90.1301 - FAR clauses/provisions.

52.219-13 Utilization of Women-Owned Small Businesses. (AUG 1986)

The clause is not necessary to the acquisition of petroleum, petroleum-related services or coal because both subcontracting opportunities and the existence of woman-owned business in these commodities are minimal. DESC has retained the certification clause to document those businesses that are women-owned.

52.222-28 Equal Opportunity Preaward Clearance of Subcontracts (APR 1984)

52.244-1 and Alt. I Subcontracts (Fixed Price Contracts) (APR 1991)

These clauses are not applicable to petroleum, petroleum-related services or coal because contracts are fixed price or fixed price with economic price adjustment and unpriced modifications are not issued.

52.227-1 Authorization and Consent (APR 1984)

52.227-2 Notice and Assistance Regarding Patent and Copyright

Infringement (APR 1984)

These clauses are not necessary to the acquisition of petroleum, petroleum-related services, or coal because patent considerations are not involved.

52.229-3 Federal, State, and Local Taxes (JAN 1991)

52.229-4 Federal, State, and Local Taxes (Noncompetitive Contract)

(JAN 1991)

52.229-5 Taxes - Contracts Performed in U.S. Possessions or Puerto Rico.

(APR 1984)

A substitute DESC clause was developed to simplify, consolidate and tailor the FAR clauses to petroleum, petroleum related services, and coal. The FAR clauses only address after imposed/after relieved Federal taxes and do not address such circumstances for state and local taxes applicable to DESC procurement. The FAR clauses also require contract prices inclusive of all applicable Federal, State and local taxes. This is not acceptable to DESC since some taxes at all levels are excluded from certain fuel products under Government use criteria in the Internal Revenue codes.

52.247-1 Commercial Bill of Lading Notations (APR 1984)

This clause is not necessary because the Government does not require prepayment of freight charges on petroleum or coal shipments.

52.247-54 Diversion of Shipment under F.O.B. Destination Contracts

(MAR 1989)

This clause is not necessary to the acquisition of petroleum because this area is covered in other DESC transportation clauses. The portions of this clause covering the use of paid freight bills to evidence delivery do not apply to petroleum shipments. Petroleum product deliveries are evidenced by delivery ticket copies and properly executed DD Forms 250. The portions of the clause limiting truck shipment reimbursement to 70% of the lowest published tariff is inappropriate for petroleum. Equitable adjustments for transportation are accomplished consistent with the methodology used to evaluate transportation.

ADDITIONAL CLAUSES TO BE OMITTED

52.214-6 Explanation to Prospective Bidders (APR 1984)

52.214-9 Failure to Submit Bid (APR 1984)

52.214-3 Amendments to Invitations for Bids (DEC 1989)

52.214-12 Preparation of Bids (APR 1984)

52.227-3 Patent Indemnity (APR 1984)

52.246-23 Limitation of Liability (APR 1984)

These clauses are excluded from DESC streamlined solicitations because they are superfluous to DESC contracting or serve no useful purpose. Instructions for submitting amendments are sent with the amendments themselves. Fuel specifications require no explanation. Bid/offer preparations guidance is included in the schedule. Elaborate proposals are not a possibility. Patent and liability limitations are not applicable.

52.214-14 Place of Performance - Sealed Bid (APR 1985)

52.215- 6 Place of Performance (APR 1984)

When a bidder or offeror submits a bid or offer, either the offeror tells us where the place of performance is located, or it is of no consequence. As a result, this clause serves no useful purpose in DESC contracts.

52.246-1 Contractor Inspection Requirements (APR 1984)

This clause was streamlined out of non-petroleum contracts only (coal and services). The subject matter in this clause is covered by other DESC clauses.

52.247-29 F.O.B. Origin (Jun 1988)

52.247-30 F.O.B. Origin, Contractor's Facility (APR 1984)

52.247-31 F.O.B. Origin, Freight Allowed (JUN 1988)

52.247-32 F.O.B. Freight Prepaid (JUN 1988)

52.247-59 F.O.B. Origin - Carload and Truckload Shipments (APR 1984)

The subject matter of these clauses is contained in DESC special transportation clauses.

52.219-14 Limitations on Subcontracting (JAN 1991)

Domestic bulk petroleum requires small business manufacturers offering on set-aside requirements to refine at least 90% of the offered quantity. This is pursuant to 49 Federal Register 5037, February 9, 1984 (13 C.F.R. 121.2, fn. 4 (1989)). This clause is unnecessary in domestic bulk petroleum contracts.

52.219-15 Notice of Participation by Organizations for the Handicapped

(APR 1991)

Handicapped organizations do not supply any products or services acquired by DESC.

90.1302 - DFARS Clauses/Provisions.

252.243-7001 Pricing of Contract Modifications (DEC 1991)

The price of petroleum is based on market-conditions, not cost, thus making this clause unnecessary for DESC.

252.247-7022 Representation of Extent of Transportation by Sea (AUG

1992)

252.247-7023 Transportation of Supplies by Sea (DEC 1991)

252.247-7024 Notification of Transportation of Supplies by Sea (DEC

1991)

These clauses are unnecessary in acquisitions for petroleum, petroleum related services, and coal. Domestic acquisitions rarely, if ever, involve supplies which have been transported from outside the United States by sea. Overseas bunkers, into-plane, and storage also do not involve ocean transportation. Nearly all shipments to overseas posts, camps, and stations take place by land; those few made by water are nearly all within foreign territorial waters and therefore subject to foreign cabotage laws, so that no U.S.-flag vessels are available. Bulk fuels shipments are rarely on other than an f.o.b. origin basis, so that ocean shipment of end items is managed by the Military Sealift Command.

90.1303 DESC clauses/provisions

The following DESC tailored clauses have been approved for use in the Streamlined solicitations.

52.229-9F15 Federal, State and Local Taxes (Deviation)(DESC) (NOV 93)

52.246-9FC3 Quality Provisions (Coal) (DESC) (OCT 97)

52.247-9FA1 Delivery Conditions for Tank Cars, Boxcars, Trucks,

Transport Trucks, Trucks and Trailers Tank Wagons, Pipeline or Lighters (DESC) (NOV 96)

52.247-9FH1 Shipment and Routing (DESC) (NOV 72)

TABLE OF CONTENTS

SUBPART 90.14 - RECOUPMENT ACTIVITY REPORTING

90.1400 Sample reporting.

Illustrative recoupment activity reports are provided as follows:

15 April 1995 Report

A. FY95, 1st QTR

1. Recoupments

a. $ _______ nonconformances reported/records established between

October & December 1994

b. $ _______ demanded/requested against this amount

c. $ _______ recouped against this amount

2. Express warranties

a. $ _______ nonconformances reported/records established between

October & December 1994, for which the warranty period was

still in effect

b. $ _______ demanded against this amount

c. $ _______ recouped against this amount

3. Recoupment breakdown (A1c + A2c)

a. $ _______ part of (A1c + A2c) covered by monetary reimbursement

b. $ _______ part of (A1c + A2c) covered by replacements

B. FY95, 2nd QTR

1. Recoupments

a. $ _______ nonconformances reported/records established between

January & March 1995

b. $ _______ demanded/requested against this amount

c. $ _______ recouped against this amount

2. Express warranties

a. $ _______ nonconformances reported/records established between

January & March 1995, for which the warranty period was

still in effect

b. $ _______ demanded against this amount

c. $ _______ recouped against this amount

3. Recoupment breakdown (B1c + B2c)

a. $ _______ part of (B1c + B2c) covered by monetary reimbursement

b. $ _______ part of (B1c + B2c) covered by replacements

CUMULATIVE:

1. Recoupments

a. $ _______ nonconformances reported/records established between Oct

1994 & March 1995 (A1a + B1a)

b. $ _______ demanded/requested against this amount (A1b + B1b)

c. $ _______ recouped against this amount (A1c + B1c)

2. Express warranties

a. $ _______ nonconformances reported/records established between Oct

1994 & March 1995, for which the warranty period was still

in effect (A2a + B2a)

b. $ _______ demanded against this amount (A2b + B2b)

c. $ _______ recouped against this amount (A2c + B2c)

3. Recoupment breakdown (A1c + B1c + A2c + B2c)

a. $ _______ part of the overall total recoupment covered by monetary

reimbursement (A3a + B3a)

b. $ _______ part of the overall total recoupment covered by

replacements (A3b + B3b)

31 July 1995 Report

A. FY95, 1st QTR

1. Recoupments

a. $ _______ nonconformances reported/records established between

October & December 1994

b. $ _______ demanded/requested against this amount

c. $ _______ recouped against this amount

2. Express warranties

a. $ _______ nonconformances reported/records established between

October & December 1994, for which the warranty period was

still in effect

b. $ _______ demanded against this amount

c. $ _______ recouped against this amount

3. Recoupment breakdown (A1c + A2c)

a. $ _______ part of (A1c + A2c) covered by monetary reimbursement

b. $ _______ part of (A1c + A2c) covered by replacements

B. FY95, 2nd QTR

1. Recoupments

a. $ _______ nonconformances reported/records established between

January & March 1995

b. $ _______ demanded/requested against this amount

c. $ _______ recouped against this amount

2. Express warranties

a. $ _______ nonconformances reported/records established between

January & March 1995, for which the warranty period was

still in effect

b. $ _______ demanded against this amount

c. $ _______ recouped against this amount

3. Recoupment breakdown (B1c + B2c)

a. $ _______ part of (B1c + B2c) covered by monetary reimbursement

b. $ _______ part of (B1c + B2c) covered by replacements

C. FY95, 3rd QTR

1. Recoupments

a. $ _______ nonconformances reported/records established between April

& June 1995

b. $ _______ demanded/requested against this amount

c. $ _______ recouped against this amount

2. Express warranties

a. $ _______ nonconformances reported/records established between April

& June 1995, for which the warranty period was still in

effect

b. $ _______ demanded against this amount

c. $ _______ recouped against this amount

3. Recoupment breakdown (C1c + C2c)

a. $ _______ part of (C1c + C2c) covered by monetary reimbursement

b. $ _______ part of (C1c + C2c) covered by replacements

CUMULATIVE:

1. Recoupments

a. $ _______ nonconformances reported/records established between

Oct 1994 & June 1995 (A1a + B1a + C1a)

b. $ _______ demanded/requested against this amount (A1b + B1b + C1b)

c. $ _______ recouped against this amount (A1c + B1c + C1c)

2. Express warranties

a. $ _______ nonconformances reported/records established between Oct

1994 & June 1995, for which the warranty period was still

in effect (A2a + B2a + C2a)

b. $ _______ demanded against this amount (A2b + B2b + C2b)

c. $ _______ recouped against this amount (A2c + B2c + C2c)

3. Recoupment breakdown (A1c + B1c + C1c + A2c + B2c + C2c)

a. $ _______ part of the overall total recoupment covered by monetary

reimbursement (A3a +B3a + C3a)

b. $ _______ part of the overall total recoupment covered by replacements

(A3b + B3b + C3b)

Continue in this manner according to the following schedule:

Report Date Period Covered Number of Qtrs. (plus cumulative)

31 Oct 95 Oct 94 - Sep 95 4

31 Jan 96 Oct 94 - Dec 95 5

30 Apr 96 Oct 94 - Mar 96 6

31 Jul 96 Oct 94 - Jun 96 7

31 Oct 96 Oct 94 - Sep 96 8

31 Jan 97 Oct 94 - Dec 96 9

30 Apr 97 Oct 94 - Mar 97 10

31 Jul 97 Oct 94 - Jun 97 11

31 Oct 97 Oct 94 - Sep 97 12

31 Jan 98 Jan 95 - Dec 97 12

30 Apr 98 Apr 95 - Mar 98 12

The following is how the 31 Oct 97 report, for example, would look:

31 Oct 1997 Report

A. FY95, 1st QTR

1. Recoupments

a. $ _______ nonconformances reported/records established between October

& December 1994

b. $ _______ demanded/requested against this amount

c. $ _______ recouped against this amount

2. Express warranties

a. $ _______ nonconformances reported/records established between October

& December 1994, for which the warranty period was still in

effect

b. $ _______ demanded against this amount

c. $ _______ recouped against this amount

3. Recoupment breakdown (A1c + A2c)

a. $ _______ part of (A1c + A2c) covered by monetary reimbursement

b. $ _______ part of (A1c + A2c) covered by replacements

B. FY95, 2nd QTR

1. Recoupments

a. $ _______ nonconformances reported/records established between January

& March 1995

b. $ _______ demanded/requested against this amount

c. $ _______ recouped against this amount

2. Express warranties

a. $ _______ nonconformances reported/records established between January

& March 1995, for which the warranty period was still in

effect

b. $ _______ demanded against this amount

c. $ _______ recouped against this amount

3. Recoupment breakdown (B1c + B2c)

a. $ _______ part of (B1c + B2c) covered by monetary reimbursement

b. $ _______ part of (B1c + B2c) covered by replacements

C. FY95, 3rd QTR

1. Recoupments

a. $ _______ nonconformances reported/records established between April

& June 1995

b. $ _______ demanded/requested against this amount

c. $ _______ recouped against this amount

2. Express warranties

a. $ _______ nonconformances reported/records established between April

& June 1995, for which the warranty period was still in

effect

b. $ _______ demanded against this amount

c. $ _______ recouped against this amount

3. Recoupment breakdown (B1c + B2c)

a. $ _______ part of (B1c + B2c) covered by monetary reimbursement

b. $ _______ part of (B1c + B2c) covered by replacements

D. FY95, 4th QTR (Report the same categories of information)

E. FY96, 1st QTR (Report the same categories of information)

*** }

} (The asterisks represent all quarters from FY96, 2nd QTR

*** } through FY97, 3rd QTR.)

L. FY97, 4th QTR

1. Recoupments

a. $ _______ nonconformances reported/records established between July &

Sep 1997

b. $ _______ demanded/requested against this amount

c. $ _______ recouped against this amount

2. Express warranties

a. $ _______ nonconformances reported/records established between July &

Sep 1997, for which the warranty period was still in effect

b. $ _______ demanded against this amount

c. $ _______ recouped against this amount

3. Recoupment breakdown (L1c + L2c)

a. $ _______ part of (L1c + L2c) covered by monetary reimbursement

b. $ _______ part of (L1c + L2c) covered by replacements

CUMULATIVE:

1. Recoupments

a. $ _______ nonconformances reported/records established between Oct

1994 & Sep 1997 (A1a + B1a + C1a + D1a + E1a + F1a +

G1a + H1a + I1a + J1a + K1a +L1a)

b. $ _______ demanded/requested against this amount (A1b + B1b + C1b +

D1b + E1b + F1b ...L1b)

c. $ _______ recouped against this amount (A1c + B1c + C1c + D1c + E1c

+ F1c ... L1c)

2. Express warranties

a. $ _______ nonconformances reported/records established between Oct

1994 & Sep 1997, for which the warranty period was still in

effect (A2a + B2a + C2a + D2a + E2a + F2a + G2a + H2a + I2a + J2a + K2a + L2a)

b. $ _______ demanded against this amount (A2b + B2b + C2b + D2b + E2b

+ F2b ... L2b)

c. $ _______ recouped against this amount (A2c + B2c + C2c + D2c + E2c

+ F2c ... L2c)

3. Recoupment breakdown (A1c + B1c + C1c + D1c + E1c + F1c + G1c +H1c + I1c + J1c + K1c + L1c + A2c + B2c + C2c + D2c + E2c + F2c +G2c + H2c + I2c + J2c + K2c + L2c)

a. $ _______ part of the overall total recoupment covered by monetary

reimbursement (A3a + B3a + C3a + D3a + E3a + F3a ... L3a)

b. $ _______ part of the overall total recoupment covered by replacements

(A3b + B3b + C3b + D3b + E3b + F3b ... L3b)

NOTE: Three dots ( ... ) represent the intervening fiscal quarters,

all of which should be reported.

TABLE OF CONTENTS

SUBPART 90.15 - PERFORMANCE BASED LOGISTICS (PBL) ACQUISITION PROCESS

90.1501 Requirement

(a) The Defense Logistics Agency (DLA) Senior Procurement Executive (SPE) has established a structured approach to serve as a model for managing and executing performance based, long term logistical support acquisitions. This process will be implemented by each Inventory Control Point (ICP) for all acquisitions which meet the definition of a Performance Based Logistics (PBL) acquisition (See Appendix A). Those acquisitions requiring review and coordination at headquarters (see 90.1503(b)(i) will be reviewed and approved by the DLA Integrated Acquisition Review Board (I-ARB), chaired by the SPE with representation from J-34 (Readiness and Customer Support Directorate), J-37 (Distribution and Reutilization Policy Directorate), J-38 (Business Management Directorate), J-81 (Deputy Comptroller, Budget and Program Integration Operations), J-6 (Deputy Director, Information Operations/Chief Technology Officer), the ICPs, and the Defense Distribution Center (DDC). Representatives from the DLA Office of General Counsel and Small & Disadvantaged Business Utilization Office are advisors to the I-ARB. The I-ARB has the option to continue the acquisition, modify the strategy, terminate the process, or determine how to proceed into the next phase. The head of contracting activity or field activity Chief of Contracting Office shall establish and chair a similar review board based upon the approval thresholds in 90.1503(b)(i).

(b) PBL acquisitions are a major contributor to ensure the Agency continues to improve combat support to the warfighter while reducing investment costs in inventory and infrastructure. There are several types of initiatives/contractual arrangements underway within DLA with regard to acquisitions of performance based logistical support – Strategic Supplier Alliances (SSAs), PBL partnerships with the Military Services. These initiatives could take the form of long-term contracts - corporate contracts, Virtual Prime Vendor (VPV), Prime Vendor (PV), etc. These initiatives represent our strategic efforts to transform business practices from managing supplies to managing suppliers and have the potential to greatly reduce costs as well as improve the availability of items DLA provides to its customers. Appendix A provides a description of each initiative.

(c) The purpose of this guidance is to integrate current logistical support initiatives into a structured and manageable integrated acquisition process, and to ensure participants involved are aware of and fully understand all aspects of the PBL acquisition process. Given the dollar value, complexity, and importance of these types of contractual arrangements, there is a need to implement a program management approach that integrates business strategies with the acquisition process and enhances the Agency’s ability to provide the best support available to its customers.

(1) In addition, this approach incorporates the business case analysis (BCA) into the acquisition process to emphasize its importance as a tool for making sound business decisions in determining appropriate implementing strategies, and streamlines the review and approval process by establishing a single approval for both the business case and the acquisition. Throughout the entire acquisition process, contracting activities will be required to perform a continuous review/updating/assessment of both the BCA and the contract.

(2) In order to ensure successful PBL acquisition implementation and to ensure that the appropriate level of buy-in is obtained from all responsible parties, PBL acquisitions will be developed in an integrated product team (IPT) environment. The team will be efficiently comprised of representatives from both within and outside the organization – Government and Industry (when appropriate). Appendix A provides a definition of an IPT. With a structured and integrated process in place, the centers and DLA can achieve even greater benefits through the sharing of information, lessons learned, best practices, and a multi-functional approach to acquiring PBL support.

90.1502 Acquisition Process and Milestone Review and Approvals.

(a) The acquisition process will consist of four phases: Phase I – Strategic Material Sourcing; Phase II Business Strategy and Acquisition Planning; Phase III – Contract Award Process; and Phase IV – Implementation. A graphic representation of the PBL acquisition process is shown below. This section will discuss each aspect of the overall acquisition process.

(1) Phase I. Selection Process – Strategic Material Sourcing (SMS)

(i) SMS is DLA’s umbrella initiative that targets a relatively small subset of the total DLA-managed hardware items based on those NSNs that drive the Agency’s business and/or have a potential impact on readiness. SMS encompasses all of the Agency’s “shift to commercial practices” initiatives for hardware Class IV and IX items, e.g., SSAs, PV, corporate contracts, and other long-term arrangements. The initiative is based on expanding DLA’s successful adoption of commercial practices for energy and troop support items by developing and applying similar corporate strategies and techniques to the hardware commodities. As demonstrated in the commercial marketplace, the SMS process can be applied to any type of commodity.

(ii) This phase starts with identifying potential candidates for a PBL arrangement by conducting a business analysis of NSNs or material using a set of factors such as sales drivers, demand drivers, and potential readiness drivers. Input into this process should be considered from a variety of sources, including industry partners, customers, and weapon systems program managers, as well as other government sources. Once the target population is established, the items may be segmented into the four quadrants of the Material Positioning Matrix or similar technique, based on the relative cost/value and degree of procurement difficulty. Appendix A provides a definition, step-by-step process on developing and implementing SMS strategies, as well as the Material Positioning Matrix. While the current SMS process targets a specific NSN population (445K), the intent of this phase is to apply the methodology to any NSN managed by DLA.

(2) Phase II. Business Strategy and Acquisition Planning

(i) This phase sets the framework for the overall acquisition by establishing a business strategy and enhanced acquisition plan for items identified based on Phase I analysis. Although this is a two-pronged approach, it is envisioned that business strategy and acquisition planning should be an integrated and coordinated process rather than sequential.

(ii) Once the potential items or grouping of items are identified in Phase I, the initiative must be evaluated in terms of economic feasibility. This phase consists of evaluating the abbreviated (initial rough order of magnitude (ROM)) BCA to be used in developing the acquisition strategy. The BCA should be used as a tool to identify certain costs to manage an identified grouping of NSNs, and allow for a determination of alternatives on whether it is in the government’s best interest to proceed with a PBL acquisition.

(A) Business Strategy: In determining the business strategy, use the following approach:

(1) Determine appropriate and most effective cross-functional IPT. This involves an IPT structure comprised of appropriate process owners with stakeholder coordination and in some cases – participation, depending upon the size and complexity of the acquisition. The IPT should function as an integrated team throughout the entire acquisition process to ensure all issues, concerns, and needs are appropriately addressed when pursuing the best value solution. IPT members may include, but not be limited to technical specialist, demand planners and supply planners, item managers, quality assurance specialists, contract specialist, legal counsel, contract review and/or pricing analysts, financial analyst, weapon system support managers, supplier relationship managers, and customer representatives to include DLA’s customer support representatives and an industry representative when appropriate to the circumstances. Appendix B provides information and guidance on leading and participating in effective and efficient IPTs.

(2) Evaluate and assess the abbreviated BCA data. This includes evaluating the baseline costs, facts, and supporting details among potential business alternatives and documenting the current environment, possible improvements, and an outline of business strategy.

(3) Document the logistical benefits (e.g. reduced administrative lead time, reduced production lead time; reduced inventory; reduced customer wait time; increased supply availability; improved readiness; added contractor services such as forecasting, inventory management, quality; reduced manual purchase requests (PRs) (touch labor)); configuration control management; distribution and transportation services specific to the acquisition and that will be measured and tracked in Phase IV.

(4) Select type of PBL support (corporate contract, PV, VPV, standard long term contract) if applicable, where performance metrics are incorporated that best serves the customer’s needs, is consistent with the BCA conclusions, and provides the most effective and improved method of support. A long-term contract may not be a PBL if there are no performance metrics (other than compliance with delivery schedule).

(5) Develop exit strategy for transitioning items and support from contractor managed to DLA managed, if necessary.

(B) Acquisition Planning Approach:

(1) As with the business strategy, acquisition planning should be accomplished by applying the right level of expertise to formulate the strategy. When developing the acquisition plan, the integrated team should develop an approach that is appropriate to satisfying the identified requirement, consistent with sound business practices and based on the degree of risk involved. The team should also establish the managerial approach that will be used to direct and monitor all elements of the acquisition to achieve the goals and objectives established during Phase I and identified in the BCA.

(2) Market Research. Although an initial market investigation may have been conducted during Phase I, it may be necessary to validate those initial assumptions or conclusions and apply them toward a more comprehensive analysis of the market environment. In addition, using the IPT to accomplish market research may add additional value when determining the appropriate strategy to implement. Market research information and web sites are available at http://www.arnet.gov/Library/PreSolicit/presolicit.html.

(3) Sole Source Strategy. During Phase I and subsequent to market research, the IPT may conclude the requirements are available from only one source. This determination should be made as early as possible when considering long term, strategic partnerships, and business relationships using an SSA or corporate contract approach. These types of strategies model commercial best practices, increase value, and enhance support to our customers. When considering an SSA, the following factors should support the decision:

● The requirement is adequately justified as sole source and will be validated at least annually and before each option exercise.

● An agreement, developed jointly between the IPT and the contractor, can be established and documented to clearly outline the aspects of the business relationship to include business rules, functional roles, goals, and milestones.

● The customer is fully engaged and supports the elements of the business agreement.

● An exit strategy is adequately incorporated into the agreement.

● The IPT will prepare a concise, high-level charter to be signed by the Director, DLA and the industry counterpart.

Whether the acquisition is an SSA, corporate contract or other sole source strategy, IPTs are encouraged to utilize the alpha contracting process as a partnering technique to streamline the procurement process and achieve a reduction in time to award the contract. Appendix A provides a description and information on alpha contracting.

(a)(2)(B)(4) Competitive Strategy. When aggregating requirements that were previously solicited separately, and especially those previously awarded to small business, or requirements for which a small business could have competed, consult the contract bundling and consolidation guidance set forth in DLAD 7.107 and 7.170, respectively, to determine whether this could qualify as a bundled or consolidated acquisition. If so, assess the impact on small business before proceeding with the acquisition. Tailor evaluation factors to allow for offerors to propose different or innovative methods of support to include performance metrics or incentives. A pre-proposal conference may be appropriate to obtain industry input, improvements, and new or alternative approaches to acquiring the requirement.

(5) Performance Based Statement of Objectives (SOO)/Statement of Work (SOW). The IPT will develop a SOO or SOW, depending upon the specific requirement identified in Phase I. Analyze the SOW and additional requirements to determine which contract performance requirements, if any, should be subject to award or incentive fees. Candidates for consideration as incentive/award fee elements should be those that are high-risk processes or a new process improvement not performed traditionally.

(6) Planned Contract Type. Contract types (e.g. firm fixed price, fixed price incentive, fixed price with economic price adjustment) most likely to motivate contractors to perform at optimal levels shall be chosen, with consideration given to risk assessment and reasonable risk-sharing by the Government and the contractor(s). If acquiring commercial items under FAR Part 12, use of incentives is permitted as long as the incentive is based solely on factors other than costs, e.g. performance or delivery.

(7) Method of Contract Performance Management:

(i) Contract Performance Management Plan. There is a need to provide enhanced monitoring of contractor performance and to ensure satisfactory administration of PBL acquisitions. Therefore, the contracting officer, in conjunction with the IPT, should develop a contract performance management plan to delineate responsibilities for specific administration functions. The plan requires coordination within the IPT to include the Customer Support Representatives, the customer, and the Defense Contract Management Agency (DCMA), where appropriate. The plan should describe the method of managing performance (measuring/tracking metrics and incentives) after award, identify specific roles and functions (include specific responsibilities for the contracting officer, COR (if applicable), ordering officer, DCMA, and program manager.

(ii) Performance Review Board. Consider establishing a performance review board. The board should be comprised of appropriate representatives within the ICPs as well as customer representatives such as the fleet, program management offices, DCMA, or Military Services (when in a PBL partnership arrangement). The purpose of the board is to oversee contract performance. This can be done on a periodic basis such as monthly, quarterly, etc., and may also serve as the review/approval forum for award fees, incentives, and disincentives in accordance with the associated plan.

(8) Planned Evaluation Strategy/Negotiation Strategy:

(i) Determine Contract Incentives/Disincentives. To the maximum extent practicable, performance incentives, either positive or negative or both, monetary or non-monetary, shall be incorporated into the contract to encourage contractors to increase efficiency and maximize performance. Appendix B includes information and guidance regarding use of incentives in defense acquisitions.

(ii) Establish Metrics. Ensure the use of measurable performance and supply chain effectiveness standards. Examples include, but are not limited to: quality, fill rate, back orders, logistics response time, contractor processing time, customer wait time, and customer satisfaction. When establishing metrics, ensure the metrics can be directly linked to the performance incentives.

(4) Phase IV. Implementation

(i) The implementation phase begins upon contract award and requires continuous contract performance monitoring of the methods/measurements developed and stated in the SOW throughout the life of the contract. Monitoring contract performance should be accomplished with the established IPT to ensure all expected outcomes established in the previous phases are appropriately evaluated and addressed. Responsibilities include:

● Assessment of contractor performance against established, measurable standards incorporated into the contract.

● Re-assessment of logistical benefits and costs based on measured/tracked data and analyzed against the documented, baseline decision analysis (BCA).

● Validate and update the BCA prior to exercise of each option, upon significant changes during contract performance, and at completion of contract performance.

90.1503 Integrated Acquisition Review Board

(a) The Integrated Acquisition Review Board is the decision authority to be executed at the milestone review points for all major PBL acquisitions. The reviews associated with each milestone point will typically address business and acquisition strategies, risks, trade-offs, and the assessment of exit criteria as the acquisition progresses through the phases. The reviews are geared to be streamlined and will only require the information specified by the SPE. (See Subpart 7.1; 7.104-90)

(b) Thresholds

(i) The table listed below depicts threshold levels and other criteria for approval at the HQ and field level, including review and coordination requirements.

PBL ACQUISITION REVIEW THRESHOLDS

$Threshold * | Other Criteria | Review/Coordinate | Acquisition & BCA Approval Level
> $5M - $20M |  | Field Activity Level | Chief of the Contracting Office
> $20 - $50M |  | Field Activity Level | Head of Contracting Activity or designee**
> $50 million |  | HQ DLA/J-72 | I-ARB
All | DLA/Military Service Partnerships | HQ/DLA J-72 | I-ARB

* Value of base period and option periods.

** Delegable to a level above the Chief of the Contracting Office

(i) The SPE retains the authority to review any high-visibility, special interest acquisition.

(c) Waiver of Integrated Acquisition Review Board Review and Approval Requirements

(i) Waiver of I-ARB review and approval requirements may be requested by the Chief of the Contracting Office, under exceptional circumstances. The request for waiver shall be submitted to the DLA Supplier Operations Branch (J-72), must include the rationale and justification for the waiver, and should address the minimum requirements under each milestone, to the extent practicable. Waivers are granted by the SPE on a case-by-case basis.

Appendix A

Definitions/Descriptions

Alpha Contracting. An innovative contracting technique, typically used in satisfying sole source requirements, that transfers the acquisition process from a consecutive (and sometimes iterative) process into a more efficient and streamlined concurrent process. From solicitation development, through proposal preparation, to evaluation, negotiation, and award, Alpha contracting relies on a team approach to concurrently develop a requirement through award and implementation. Information on Alpha contracting can be found from a wide variety of sources through the search function of the DoD Acquisition Deskbook, accessible from the OSD AcqWeb homepage or http://www.dau.mil.

Business Case Analysis (BCA). A comparative analysis that presents facts and supporting details among competing business alternatives. The BCA should facilitate a determination whether to implement a PBL type arrangement by comparing the Government’s cost of supporting the initiative versus the contractor’s cost of supporting the items or material. There are two types – abbreviated (rough order magnitude (ROM)), and final BCA.

Corporate Contract. A long-term contract that aggregates requirements of more than one ICP or Military Service with a single supplier. A corporate contract can support both DLA direct (DLA owns inventory) and/or customer direct (vendor holds inventory). (Note: DLA direct and customer direct are Business Systems Modernization Program terms.)

Customer Wait Time (CWT) – This measures the elapsed time from the issuance of a customer order to the satisfaction of that order.

Integrated Acquisition Review Board (I-ARB). The I-ARB is the decision authority to continue the acquisition, modify the strategy, terminate the process, or determine how to proceed into the next phase of the acquisition. (See Subpart 7.1; 7.104-90)

Integrated Product Team (IPT). Team composed of representatives from appropriate functional disciplines working together to build successful programs, identify and resolve issues, and make sound and timely recommendations to facilitate decision-making. There are three types of IPTs: overarching IPTs (OIPTs) that focus on strategic guidance, program assessment, and issue resolution; working level IPTs (WIPTs) that identify and resolve program issues, determine program status, and seek opportunities for acquisition reform; and program level IPTs that focus on program execution and may include representatives from both government and industry.

Long Term Contracts. A n indefinite-delivery type contract in excess of one year (including options) with delivery orders. DLA direct and/or customer direct.

Performance Based Logistics (PBL) acquisition. Acquisitions of material and/or logistics support (such as inventory management, storage, materiel handling, and transportation)(customer direct or DLA direct) where performance is evaluated based on measurable outcomes to ensure improved readiness, availability, or reduced overall costs to the customer and DLA. PBL acquisitions may include long term contracts, prime vendor contracts, virtual prime vendor contracts, and corporate contracts.

Prime Vendor/Virtual Prime Vendor. A long term contract with a commercial distributor, original equipment manufacturer (OEM), or third party logistics provider for integrated logistics support that may include forecasting, inventory management, distribution, engineering support, technical services or other services to support customer needs. Normally includes performance metrics. Customer direct.

Service Partnerships. An arrangement between a Military Service and DLA to award or modify a single performance based logistics contract consisting of both DLA NSNs and Service NSNs.

Strategic Material Sourcing (SMS). SMS is DLA's umbrella initiative that targets a relatively small subset of the total DLA-managed hardware items based on those NSNs that drive the Agency’s business and/or have a potential impact on readiness. SMS encompasses all of the Agency's "Shift to Commercial Practices” initiatives for hardware items, e.g., Strategic Supplier Alliances, Corporate Contracts and other long-term agreements. The initiative is based on expanding DLA’s successful adoption of commercial practices for energy and troop support items by developing and applying similar corporate strategies and techniques to the hardware commodities. The attached White Paper provides an overview of Strategic Sourcing, which is the commercial sourcing strategy that forms the basis for SMS.

Strategic Supplier Alliances. One of the key tools within the SMS umbrella. They involve long-term partnerships between DLA and major sole source suppliers that establish a collaborative relationship to accomplish a mutually compatible goal. SSAs involve true corporate-wide arrangements that entail identifying process changes beneficial to both parties, aligning purchasing with manufacturing and establishing performance based objectives. The overall goals of the SSA approach are improved availability, reduced customer wait time, reduced inventory, and reduced total price.

Appendix B

Regulation, Guidance, Best Practices, Sample SOWs, and Templates

Federal Acquisition Regulation (FAR). FAR Subpart 37.600 prescribes policies and procedures for the use of performance-based contracting methods.

Defense Federal Acquisition Regulation (DFARS). DFARS Subparts 237.601 and 212.102 permit contracting officers to use FAR Part 12 for performance-based contracts for services under certain circumstances.

The Office of Federal Procurement Policy (OFPP). OFPP’s ARNet website -http://www.arnet.gov/Library/PreSolicit/presolicit.html offers a variety of information on performance based service contracting (PBSC) such as guidance on Best Practices for Performance-Based Contracting, Final Edition, October 1998; OFPP Report on the Performance-Based Service Contracting Pilot Project, May 1998; and OFPP Memorandum, Subject: PBSC Checklist. Templates and samples are also available.

Seven Steps to Performance Based Acquisition. This guide, geared to the greater acquisition community (especially program offices), breaks down performance-based service acquisition into seven simple steps.

n Establish an integrated solutions team

n Describe the problem that needs solving

n Examine private-sector and public-sector solutions

n Develop a performance work statement (PWS) or statement of objectives (SOO)

n Decide how to measure and manage performance

n Select the right contractor

n Manage performance

Located on the following website, http://oamweb.osec.doc.gov/pbsc/index.html , the guide also includes several links to performance-based acquisition sites which include samples and templates.

U.S. General Services Administration. GSA’s portal provides several agency websites which link to a variety of sources of information on performance-based acquisition (includes samples and templates):

http://www.gsa.gov/Portal/content/pubs_content.jsp?contentOID=121260&contentType=1008&cid=null

U.S. Navy. Information on the Navy’s Performance Based Logistics’ Acquisitions is available at http://extra.navicp.navy.mil/scs/pbl.html. The information contained within this extranet site includes SOWs as well as performance and supply chain metrics.

Deputy Under Secretary of Defense for Logistics and Materiel Readiness. Product Support for the 21st Century: A Program Manager’s Guide to Buying Performance. This guide presents a performance-based logistics (PBL) strategy for product support of weapon systems. The guide is a tool for program managers as they design product support strategies for new programs, major modifications, or as they reengineer product support strategies for legacy weapon systems.

The Under Secretary of Defense Acquisition and Technology. Performance Based Services Acquisition Guidebook – January 2001. The Department of Defense (DoD) developed this guidebook as a cooperative effort among the components to help the acquisition team, and any other stakeholder, better understand the basic principles of PBSA and better implement performance based methodologies into service acquisition.

The Under Secretary of Defense. The attached guidance, Guide to Incentive Strategies for Defense Acquisitions – January 2001, amplifies existing policy regarding use of incentives in defense acquisitions.

The Office of the Secretary of Defense (OSD). OSD’s Rules of the Road: A Guide for Leading Successful Integrated Product Teams, located on the DoD Acquisition Deskbook website: http://acc.dau.mil/simplify/ev.php?ID=7224_201&ID2=DO_TOPIC , is a living document that facilitates organizing, leading, and participating in effective and efficient IPTs.

TABLE OF CONTENTS

PART 90

SUPPLEMENTAL PROCEDURES

SUBPART 90.16 - STRATEGIC SUPPLIER ALLIANCE (SSA)

90.1600 Strategic Supplier Alliance Policy

90.1601 Strategic Supplier Alliance Process

90.1602 SSA Definitions

SUBPART 90.16 - STRATEGIC SUPPLIER ALLIANCE (SSA)

90.1600 – Strategic Supplier Alliance Policy

(a) Each DLA supply chain will continually review the supplier base for potential strategic supplier alliance candidates. At a minimum, each supply chain will review the supplier business base and nominate new SSA candidates annually. A mandatory review will be conducted in conjunction with the end of the fiscal year and the strategic materiel sourcing program review. Supply chain leadership may conduct additional reviews and propose SSA candidates at any time.

(b) Each SSA supplier will be assigned a supplier relationship manager (SRM). The SRM resides physically at the DLA location most appropriate to the supplier and is a permanent member of the Joint Steering Group (JSG). The SRM will manage DLA’s overall relationship with the SSA supplier. A single SRM may be assigned more than one SSA to manage.

(c) Each SSA will identify associated CAGE codes. Once an SSA is established, DLA contracting officers, regardless of supply chain, shall obtain coordination on all non-competitive contracting actions associated with SSA CAGE codes with the responsible SRM before award.

(d) DLA supply chains may use agreements, contracts, and alliances created and managed by non-DLA activities in SSA efforts.

(e) DLA supply chains may pursue participation in non-DLA sponsored SSAs.

(f) See HQ DLA J-72 management website (https://today.dla.mil/j-3/j-336/logisticspolicy/J-72/SSA.htm) for additional program information.

(g) All SSA charters will include the following paragraph:

"The Defense Logistics Agency (DLA), ______, and _______ have initiated efforts to identify opportunities across the spectrum of the Supplier and Government organizations to improve customer support, procurement, quality, program management, engineering, and program integration in order to further improve support to the warfighter. In all matters that arise under the Alliance, the parties commit to a broad-based, cooperative approach."

90.1601 – Strategic Supplier Alliance Process

The strategic supplier alliance process consists of four phases: Need Determination, Infrastructure Development, Implementation, and Monitoring & Measurement. Diagram 1 illustrates the flow of events as DLA supply chains design and implement strategic supplier alliances with key suppliers.

(a) NEED DETERMINATION

1. Identify alliance candidates

a) All SSA candidates must be suppliers that conduct single-source business with DLA over an extended and defined period. DLA suppliers with competitive and single-source business may be examined for SSA improvements in accordance with this policy. However, competitively procured items may only become part of the SSA under a separate contract with the supplier after a competitive award.

b) DLA supply chains nominate SSA candidates to HQ DLA. The nominating supply chain creates the SSA nomination package. This information will be used to determine if an SSA presents a value-added opportunity to DLA and as a source document to assign the responsible supply chain. (Projected end state - supply chain assignments will not experience significance change until business systems modernization reaches full operational capability.)

SSA nominating packages include the following information:

(i) Identification of all potential DoD stakeholders in the SSA.

(ii) Nomination of the supplier candidate identified by corporate name and potential CAGE code (include all associated CAGE codes).

(iii) Identification of the industry segmentation of the CAGE(s) and the federal supply class(es) of the single -source NSNs.

(iv) Obligations and annual demand values of single-source business with candidate supplier. The package will use a 3-year business base.

(v) A list of the single-source NSNs and contract count of the single-source business. The package will use a 3-year business base..

(vi) A brief description of the business rationale for a SSA with the candidate

supplier.

(vii) Additional information as needed.

c) The nominating supply chain shall disseminate the SSA nominating package to all DLA center SSA POCs for review and comment:

The DLA center SSA POCs are: (DSCP – P) (DSCC – P) (DSCR – KI)

d) The nominating supply chain submits the SSA nomination package to HQ DLA J-72. HQ DLA J-72 reviews all SSA nomination packages. A determination of approval-to-proceed or disapproval will be made within 5 business days. HQ DLA J-72 will provide rationale for any disapproval. Disagreements between supply chains and their detachments shall be adjudicated by the HQ DLA J-72.

Supply Chain Assignments by Location (detachments may be located at multiple locations) | Supply Chain
DSCR | Aviation
DSCC | Land, Maritime
DSCP | Medical, Subsistence, Clothing & Textiles, Construction & Equipment

e) Once HQ DLA grants approval-to-proceed to the SSA effort, all supply chains will be notified by HQ DLA J-72. The responsible supply chain officially initiates contact with the supplier candidate for interest in establishing an SSA. The responsible supply chain determines the best strategy to approach a supplier candidate. Format of the approach is at the discretion of the responsible supply chain. HQ DLA level contact or support with efforts to communicate with the supplier candidate will be made available to the responsible supply chain, if requested. Contact with nominated SSA suppliers may be delayed to accommodate stakeholders. SSA initiatives will be added to the DLA SSA Strategic Execution plan when the nominated supplier accepts the invitation to begin establishment of an SSA.

f) Once a supplier candidate agrees to begin SSA discussions, the responsible supply chain arranges the initial meeting with the supplier to introduce the SSA concept, if necessary. Initial meetings with the supplier candidate should include SSA education, fact-finding, discovery, and benefit discussions. The initial meeting may include DoD stakeholder representatives and others as determined by the responsible supply chain.

2. Identify stakeholders

For purposes of this instruction, the term “stakeholder” refers to DoD government activities only. The SSA candidate is known as the “supplier.”

a) The responsible supply chain will identify and make contact with all stakeholders to determine potential interest in participation. All DLA supply chains will be contacted to review inter-agency stakeholder status. DLA customer relationship managers (CRMs) are potential stakeholders. Non-DLA stakeholders may include, but are not limited to, the Military Services, multiple activities within a Military Service, DCMA, and other Federal Agencies. Non-DLA stakeholder point(s) of contact (POCs) are pursued on a case-by-case (individual SSA) basis by the responsible supply chain.

b) When planning any meeting with the Military Services to discuss strategic issues regarding a specific supplier or DLA’s general SSA program, the responsible supply chain must coordinate with HQ DLA J-72 by providing the purpose of meeting, proposed date/time/location/duration, and attendee listing. E-mail is acceptable.

c) Additional stakeholders may be added to the SSA effort at any point.

3. Each stakeholder identifies desired benefits

When notified that an SSA effort has been approved-to-proceed and stakeholders have been identified, the responsible supply chain will request and coordinate benefit analysis from all stakeholders. Each stakeholder must articulate desired benefits and planning assumptions. The responsible supply chain will consolidate stakeholder input.

4. Stakeholders meet to determine SSA focus/common strategic goals and establish plan of action and milestones (POA&M) for the SSA

Once benefit analysis has begun among the stakeholders, the responsible supply chain conducts an SSA focus meeting. Ideally, the focus meeting should occur prior to contact with the candidate supplier. Stakeholder participation in SSAs is a GO/NO-GO decision. A GO decision indicates a stakeholder will join DLA in the SSA process. A NO-GO decision indicates the stakeholder will not take part in DLA SSA efforts.

a) The focus meeting must discuss and document the basic goals and objectives of the SSA.

b) The focus meeting must document an overall Plan of Action and Milestones (POA&M).

c) The focus meeting must negotiate and document a GO/NO-GO decision schedule. An affirmative decision (GO) to participate is required by an established decision date.

d) The responsible supply chain shall invite the HQ DLA J-72 to attend SSA focus meetings. If the HQ DLA J-72 is unable to attend, the responsible supply chain shall provide minutes.

5. SSA “GO/NO GO” decision by all stakeholders

a) After the focus meeting, all DoD stakeholders will conduct internal coordination concerning the proposed SSA. If no focus meeting is held, stakeholders need only respond to the responsible supply chain to register their intentions (GO/NO-GO). DoD stakeholders must respond affirmatively (GO) to the responsible supply chain in accordance with the established schedule to participate in the SSA. If a DoD stakeholder expresses a NO-GO decision, its status as a stakeholder is removed from the SSA effort. A “NO-GO” activity may continue unilaterally with the candidate supplier or rejoin the effort at a later time.

b) Once all stakeholders have made a GO/NO-GO decision, the responsible supply chain shall develop the overall SSA strategy based upon the benefit analysis and focus meetings. In coordination with stakeholders, the responsible supply chain drafts the SSA charter to formalize the relationship. Each individual SSA charter is tailored to the supplier as negotiated.

6. SSA charter routed for signature by senior leadership

a) The responsible supply chain shall submit the SSA charter to HQ DLA J-72 when the final version has been negotiated with the supplier and DoD stakeholders. HQ DLA J-72 will coordinate the charter for signature by DLA-D. The responsible supply chain will determine what other stakeholder signature(s) are to be included on the charter. The responsible supply chain will obtain these DoD stakeholder signature(s), and the supplier signature in the order cited in paragraph b below. The responsible supply chain will sponsor any signature ceremonies. SSA supplier signatory level must be at a level equal to or greater than the Director of DLA. The responsible supply chain will ensure enough SSA charter copies are available for each signatory to have a charter with original signatures.

b) Sequence of charter signatures:

● (Signatories: only DLA-D and supplier) – DLA-D, then the supplier

● (Signatories: Multiple DoD Stakeholders, DLA-D, and supplier) – Various DoD stakeholders, then DLA-D, then the supplier

c) There may be cases when DLA joins a SSA alliance initiated by a military service. The DLA Director’s signature on a Military Service-initiated charter signifies DLA’s SSA participation with the supplier.

d) Once signed by all parties, the responsible supply chain will distribute charter originals and copies as needed. An SSA charter will remain on file at HQ DLA J-72. When additional DoD stakeholders join the SSA after the charter has been signed, use an addendum to the SSA charter if no significant changes to the charter are anticipated. Minimum DLA signatory level on SSA charter addendums is a DLA center Commander/Director/Administrator. Create a new charter for significant changes advanced by a new DoD stakeholder and approved at the executive committee level. The responsible supply chain is responsible for the creation, coordination, and execution of any modifications or addendums to the existing charter. HQ DLA J-72 must be notified prior to changes in any SSA charter.

(b) INFRASTRUCTURE DEVELOPEMENT

The responsible supply chain will formally establish the following SSA team structures with the supplier and stakeholders: executive committee, joint steering group, and improvement teams.

1. Establish Executive Committee

The Executive Committee should be established at the SES/Flag or GS-15/O-6 level. Industry partner (supplier) committee members must be at a commensurate level. For DLA, the executive committee includes Center Commanders/Directors and/or Deputies, the Supply Chain HCA, and responsible supply chain Directorate Level. HQ DLA, DIRECTOR, ACQUISITION MANAGEMENT (J-7) and J-72 are standing members of the executive committee. The HQ DLA J-72 will be notified of all executive committee meetings and may be the only representative for DIRECTOR, ACQUISITION MANAGEMENT (J-7). Under routine participation, the executive committee meets as deemed appropriate by the Commander/Director or Deputy Commander of the Supply Chain.

2. Establish Joint Steering Group (JSG)

The Joint Steering Group (JSG) will be established initially with stakeholders at the GS-14 level or above. Industry partner (supplier) committee members will be at a commensurate level. For DLA, the JSG includes the cognizant Supplier Relationship Manager (SRM), Supplier Team Leads, and Business Unit Leader. Agency customer relationship managers (CRMs) identified as stakeholders will be invited to become core members of the JSG. Face-to-face meetings are expected quarterly. Video teleconferences may be utilized as needed throughout the year.

3. JSG develops objectives for each SSA goal and the roles and responsibilities

a) Once the JSG is established, the JSG meets to evaluate and refine the pre-charter focus goals, objectives, and plan of action and milestones (POA&Ms). The JSG will identify initial SSA improvement opportunities and outcomes.

As part of the JSG, the responsible supply chain details the SSA execution strategy:

(i) The JSG will develop the SSA execution strategy to a specific plan of action.

(ii) The JSG will determine targets of opportunity (For example: high priority NSNs, pricing methodologies, etc.).

b) The JSG will establish improvement teams for each improvement opportunity as required, and prioritize improvement opportunities.

c) The JSG will establish POA&Ms for each improvement opportunity.

d) The JSG will create and attach metrics to assess performance of the SSA.

e) Based upon the aforementioned JSG items, the responsible supply chain will document and update the SSA execution strategy.

4. Executive committee approves goals, objectives, and improvement opportunities

Once the SSA execution strategy has been developed, the JSG will return to the executive committee for approval. The JSG obtains Executive Committee “buy-in” for each improvement opportunity. Each improvement opportunity with executive committee approval is immediately available for implementation.

(c) IMPLEMENTATION

The responsible supply chain will monitor all contract actions related to the SSA. Two criteria must be met to brief the DLA Director that a SSA has been formally implemented:

- A signed and completed SSA charter.

- A new contract or a modification to an existing contract has been awarded to the SSA supplier. The new contract or modification must include performance criteria and improved business practices identified by the alliance members. The award shall include DLA items. Use of a non-DLA contractual instrument is acceptable. In cases where improvements do not result in an immediate contractual action, a decision will be made by HQ DLA, J-72, that significant result(s) from SSA process improvement(s) have been accomplished.

For SSAs that have already been implemented, a “refocusing” meeting may be necessary when new stakeholders join the effort. The responsible supply chain will arrange and host any “refocusing” meetings with existing stakeholders to examine new targets of opportunity brought by the new stakeholder. “Refocusing” meetings will be completed within 30 days of a new stakeholder’s declaration of intent to join the SSA. The responsible supply chain will determine if a “refocusing” meeting is required and whether the addition of a stakeholder will necessitate change(s) to the SSA charter.

1. JSG assigns champion and creates an improvement team for each improvement opportunity if required

Improvement teams are established (by the JSG) as necessary at the appropriate expertise level. Skill sets of members must be sufficient to work through identified improvement opportunities. Improvement teams may also include CRMs. Improvement team meetings are held as required. Improvement opportunities shall be prioritized by the JSG.

2. JSG assigns adequate resources to each improvement team

If resources are insufficient for all improvement opportunities, the Executive Committee/JSG will dedicate available resources according to the established priority.

3. Each improvement team develops POA&M and metrics

4. JSG approves improvement team’s POA&M and metrics

5. Improvement teams are empowered to work the issues and recommend solutions

6. JSG oversees implementation of improvement opportunities

(d) MONITORING AND MEASUREMENT

The responsible supply chain will continually ensure the SSA is reviewed and reassessed to determine if changes need to be made to the alliance focus or if additional stakeholders need to be included.

The JSG shall manage (monitor and measure) the performance of the SSA through Supplier Readiness Review metrics. Each DLA SSA corporate contract shall be measured using the following Supplier Readiness Review Metrics:

- Growth: adding items to the contracts within the SSAs

- Delivery based on the requirements of the individual contracts. Metrics should cover stock and DVD as appropriate.

- Quality

- Cost reductions and/or price controls through the partnership

- Back order performance

- PLT reduction

- ALT reduction

- Percent of annual demand for a given supplier covered by the items placed on contract

As business systems modernization and Agency practices mature, measurements are expected to refine and align with the Key Performance Indicators.

1. Each improvement team briefs progress and results to the JSG

The Executive Committee will manage all Milestones/POA&Ms set by the JSG and the improvement teams.

If at any time, the supplier disengages from SSA efforts, the SRM will immediately inform HQ DLA and all stakeholders of the supplier’s position. A stakeholder’s focus meeting may be reconvened, as necessary, to terminate the effort or adjust strategy.

2. JSG provides periodic status to the Executive Committee

Executive Committee meetings are held at the request of the JSG or as requested by the Executive Committee.

3. Executive committee and JSG reassess goals, objectives and improvement opportunities

4. JSG reviews measurements and takes action as needed

90.1602 - SSA Definitions

Executive Committee. Senior management committee comprised of a member from each stakeholder organization and the supplier. Responsibilities include SSA oversight and review and approval of all SSA activities. This committee exists for the life of the Alliance.

Charter. Document stating the commitment of each organization to partner in a Strategic Supplier Alliance and signed by the senior government and corporate executive of each alliance organization.

Improvement Opportunities. Targeted problem issues or identified Best Practices that need to be investigated, analyzed and resolved by the Improvement Teams.

Improvement Team. A team established by the SSA Joint Steering Group to address a specifically identified improvement opportunity. Membership is from all stakeholder organizations and the supplier and is cross-functional to represent areas which the specific improvement can affect. This team exists for a specific period of time, which is dependent on the scope and resolution of the identified improvement opportunity.

Goals. An agreed upon set of outcomes which the SSA works toward achieving.

Joint Steering Group (JSG). Day-to-day SSA management committee comprised of members from all stakeholder organizations and the supplier. Responsibilities include focusing the SSA on goals, objectives and improvement opportunities; establishing and managing improvement teams and monitoring overall SSA progress. This committee exists for the life of the Alliance.

Responsible Supply Chain. The DLA supply chain managing the SSA.

Objectives. Tasks to be accomplished in order to achieve goals.

Plan of Action & Milestones (POA&M). The roadmap developed to chart the course from SSA determination, via development and implementation, through monitoring and measurement.

Stakeholder. Those government activities with a declared interest in the SSA business relationship with the supplier; includes all DLA centers, HQ, DLA, DoD activities (Military Services, DCMA, etc.). For purposes of these instructions, those activities that decline participation in the SSA are not stakeholders. The SSA supplier is identified as the “supplier” to differentiate government-internal activities from all-participant activities.

Strategic Supplier Alliance (SSA). A DLA/customer/supplier partnership that transcends purchasing transactions to develop strategies and improvement opportunities that facilitate the sharing of information and which combines the

purchasing power and knowledge of the customer and fully engages the supplier’s capabilities to deliver superior value.

Supplier. For the purposes of SSAs, suppliers are industry partners identified as critical to meeting customer expectations and mission readiness subsequent to a DLA business profile analysis.

Supplier Relationship Manager (SRM). A position designated by DLA that manages partnerships with key suppliers and seeks to deliver significant return on investment to the enterprise. This individual serves as the single point of contact and subject matter expert for assigned supplier(s). Additionally, the SRM collaborates across the DLA enterprise to meet customer and supplier expectations.

TABLE OF CONTENTS

SUBPART 90.17 DOMESTIC NON-AVAILABILITY DETERMINATIONS

90.1700 Requirement.

90.1701 Minimizing Berry Amendment Violations.

90.1700 Requirement

(a) The Berry Amendment requires designated items be of domestic origin, domestic content, and be manufactured in the United States or its possessions unless an exception applies or unless a determination is made that the product cannot be acquired as and when needed in satisfactory quality and sufficient quantity at U.S. market prices. This general requirement applies to any item of food, clothing, tents, tarpaulins, covers, cotton, and other natural fiber products, woven silk or woven silk blends, spun silk yarn for cartridge cloth, synthetic fabric or coated synthetic fabric, including all textile fibers and yarns that are for use in such fabrics, canvas products, or wool, certain items of individual equipment, specialty metals including stainless steel flatware, or hand or measuring tools grown, reprocessed, reused, or produced in the United States or its possessions, unless the Under Secretary for Defense (Acquisition, Technology, & Logistics) (USD(AT&L) grants a domestic non-availability determination (DNAD).

(b) When a contracting activity receives a requirement for an item covered by the Berry Amendment for which no exception exists, a formal DNAD request must be submitted to HQ DLA (J-72). Contracting activities must first route DNADs through local coordination and review channels, to include the Supply Chain HCA. HQ DLA will review the DNAD request, obtain appropriate coordination, and forward it to USD(AT&L) for approval. The contracting activity should submit the DNAD package 4 to 6 months before it is needed. Also, if the domestic non-availability is anticipated to be permanent and no alternatives are possible, the field activity should separately prepare a corresponding FAR case for a permanent waiver request to add the item to FAR 25.104, Nonavailable articles, and include reference to that case in the Determination and Finding document, and the Report and Recommendation of the Contracting Activity. A DNAD package consists of:

(1) Determination and Findings (D&F): This document must concisely focus on the specifics for concluding the item is unavailable domestically. This document must be summary in nature, be no longer than 2 pages, and be prepared with the Times New Roman 13 point font. Further relevant and supporting details must be included in the Report and Recommendation of the Contracting Activity Commander. The D&F must:

(i) Cite the decision maker’s authority as specified in the Berry Amendment.

(ii) Identify the articles or items (or class of items, if applicable) being procured and their domestic availability status.

(iii) Discuss current market research results (e.g., market research has not revealed any domestic sources.) A more detailed discussion of the market research efforts and results can be presented in the Report and Recommendation of the Contracting Activity Commander.

(iv) Identify the total quantity (including readiness quantities) to be procured and length of time the waiver is needed (e.g., period of contract performance).

(v) Address the DEPSECDEF requirement that the contracting activity offered the customers alternatives not requiring a Berry Amendment waiver, and the customers’ certified responses.

(2) The contracting activity’s letter to the requiring activity (and all other branches of the services that use the item) advising: 1) that the required item requires a waiver to the Berry Amendment; and, 2) of alternatives that do not require a waiver under the Berry Amendment.

(3) The requiring activity’s written response (and written responses from other branches of the Military services that use that item, as applicable), certifying that the proposed alternatives are unacceptable. The responses must be signed by an individual with the authority to approve use of an alternate item for the service(s).

(4) Report and Recommendation of the Contracting Activity Commander/Director. This document should be signed by the Commander/Director (or individual acting in that capacity) after Supply Chain HCA review and approval. It provides for a more comprehensive and lengthy discussion of the facts than the DNAD. There is no limit on the length of the Report and Recommendation of the Activity Commander. This report should describe in reasonable detail:

(i) The supply and procurement situation; the contractor’s commercial practices; any special or unusual circumstances; results of market research conducted and constraints, if any; the reasonable conclusions drawn; exchanges between engineering support activities and customers concerning the possible existence of alternative items that do not require a Berry Amendment waiver. Attach copies of market research related documents and any other records, and letters from contractors that explain why they are unable to either obtain the product domestically or identify the source of their product or components (more relevant for prime vendor procurements), as appropriate.

(ii) Potential political ramifications, Congressional involvement, morale issues, small business concerns, mission failure, troop support issues, etc., as appropriate. The discussion must include a procurement impact statement that describes the outcome if the DNAD is not approved.

(iii) The activity commander must certify, in writing, satisfaction that the customer explored all reasonable alternatives and that such alternatives were unacceptable.

(c) The contracting activity will provide a copy of their Executive Summary to J-72. A DNAD package will be assembled for the HQ DLA Senior Procurement Executive’s (SPE) submission to the USD(AT&L). HQ DLA (J-72) will staff the DNAD package for coordination with DLA Acquisition Policy Branch (J-71), and DLA Office of General Counsel (DLA-DG), and DLA Office of Small & Disadvantaged Business Utilization (DLA-DB), and process for SPE signature.

(d) Once the DLA SPE signs the DNAD package, it will be forwarded to USD(AT&L), through the Principal Deputy Under Secretary of Defense (AT&L), the Director, Defense Procurement and Acquisition Policy, and Deputy Under Secretary of Defense (Logistics and Materiel Readiness). USD(AT&L) will approve or disapprove the DNAD request and advise the DLA SPE of the decision. The DLA SPE will then advise the contracting activity of the USD(AT&L) decision.

(e) For each DNAD that is granted, the contracting activity is required to submit an annual report in accordance with DLAD 25.7002-2(b), Exceptions.

90.1701 Minimizing Berry Amendment violations.

(a) DLA contractors are becoming aware of the increased attention and visibility that the Berry Amendment domestic source restrictions are receiving, and of the restrictions imposed by this statue, and the DFARS implementing guidance. This heightened awareness has resulted in a number of contractors notifying DLA of their violation of this statute and requesting DLA grant a “waiver.”

(b) Identification of potential violations after contract award presents considerable difficulties for DLA. Once aware of a violation, DLA is presented with the challenge of not accepting the non-conforming end item(s) pending waiver consideration in order to ensure no Anti-Deficiency Act (ADA) violation occurs. This not only can result in delayed delivery to the customer, it also may place the contractor in an untenable financial position. To minimize the impact, the affected contracting activity must quickly analyze the market to verify that no domestic source is available and prepare a DNAD. This DNAD must be fully staffed within both the contracting activity and DLA HQ before submission to USD(AT&L) for approval consideration (numerous OSD offices must also review/ coordinate prior to a USD(AT&L) decision). Additionally, external pressures (e.g., small business status, Congressional interest) are often present in such situations.

(c ) The following preaward steps should serve to minimize potential Berry Amendment violations after contract award. While the potential use of the suggestions below may

depend on the size and complexity of the procurement, the suggestions provide a guide for your use.

(i) Pre-Proposal Conference: If a Berry Amendment covered item is to be procured and a pre-proposal conference held, the domestic source restrictions of the Berry Amendment should be highlighted to the attendees. This highlights the importance to the attendees, and allows for the correction of misunderstandings (e.g., different from the Buy American Act).

(ii) Full Text Clause Inclusion: The Berry Amendment is implemented by DFARS clause 252.225.7012 (252.225-7014 for specialty metals and 252.225-7015 for hand or measuring tools). Many activities incorporate these clauses by reference which requires the contractor to actively research the content of the clause. While it is the responsibility of the contractor to adequately understand all solicitation requirements, including the contents of 252.225-7012/7014/7015, the statutory background of the clause, the heightened attention compliance with the clause is receiving, and the significant difficulties non-compliance presents makes the clause an ideal candidate for full text inclusion in the solicitation.

(iii) Plain Language: The development and inclusion in solicitations of “plain language” that spells out the Berry Amendment domestic source restrictions is a consideration. However, such language must be used with caution and must have HQ DLA approval. Subtle changes in the wording of the domestic source restrictions could be legally and contractually misinterpreted by the contractor, causing conflict with the exact requirements of the clauses at DFARS 252.225-7012/7014/7015. Any such “plain language” wording would need to have significant legal review to confirm that nothing in the developed wording modifies the requirements of the clauses (as interpreted by GAO cases, etc.) levied upon the contractor. Additionally, the “plain language” should only address the part of the Berry Amendment that applies to the commodity being solicited.

(iv) Mandatory Discussion Item: When negotiated procurements are conducted for Berry Amendment covered items, domestic source restrictions as identified in DFARS 252.225-7012/7014/7015 should be a mandatory discussion item with the contractor. Contractors should be asked to confirm their understanding of the requirement in the documentation submitted with their final proposal revisions or other submitted documentation.

(v) Preaward Surveys: If a preaward survey is required in accordance with FAR 9.106, the contracting activity should consider requesting the survey to also confirm the prospective contractor’s ability to trace the origin of materials incorporated into the end product being acquired.

(vi) Evaluation Factor: The contracting activity can consider whether use of an evaluation factor that determines the contractor’s ability to verify the source of materials is appropriate. Such a factor would most likely be a technically acceptable/unacceptable rating. Additionally, such a factor should be used judiciously, considering the complexity of the manufacturing process and size of the procurement so as not to unduly burden less “at risk” procurements.

(vii) Additional considerations: The development or use of a formal contractor certification verifying compliance with the requirements of the Berry Amendment is not authorized. The actions highlighted above should provide sufficient contractor awareness and Government assurance of contractor knowledge of Berry Amendment domestic source restrictions.

(d) Post award actions relative to the domestic source restrictions of the Berry Amendment fall into 2 general categories: 1) actions that may be taken to ensure continued contractor compliance during contract performance; and 2) action that should be taken once a potential Berry Amendment violation is detected. Although it is clearly the performing contractor’s responsibility to ensure full compliance with all contract requirements, including the Berry Amendment restrictions specified in DFARS 252.225-7012/7014/7015, DLA can take reasonable steps, where appropriate, to validate the contractor’s continuing Berry Amendment compliance. Such actions may reduce the potential for violations during performance. Violations detected during performance could result in Government non-acceptance of materials, delaying support to the warfighter, and non-payment to the contractor for the non-conforming items.

(e) Potential actions to ensure continued contractor compliance include:

(i) Berry Amendment compliance should be a discussion item at post award conferences.

(ii) The Defense Contract Management Agency (DMCA) is delegated responsibility to review, approve or disapprove, and maintain surveillance of the contractor’s purchasing system per FAR 42.302(a)(50). The contracting activities should consider requesting additional on-going DCMA emphasis of the contractor purchasing system’s ability to implement domestic source restrictions, and continuing verification of such through random records audits, etc.

(iii) Prime vendor (PV) contracts present a unique challenge due to the multitude of parts and supplies that are frequently involved. The opportunity for Berry Amendment violations is even greater because of the commerciality of the products provided under these contracts. Contracting activities should consider developing contract provisions that require the PV contractor to periodically assess their suppliers’ compliance with Berry Amendment domestic source restrictions. The nature and extent of the provisions would depend upon the particulars (i.e., number of items under contract, length of period of performance, extent that supplies to be provided are subject to Berry Amendment restrictions, etc.). Potential alternatives include periodic (e.g., quarterly) review of a certain percentage of total items under contract. The review could be as straightforward as the PV contractor sending the suppliers a standardized sheet explaining the restrictions of the Berry Amendment and requiring the supplier to notify the prime contractor of any potential violation. The supplier could also be required to acknowledge receipt of the document by signing and returning it to the prime.

(f) Actions taken after contractor notification of a potential Berry Amendment violation:

(i) Verification: Ensure the item in question is subject to the restrictions of the Berry Amendment. Direct the contractor to positively determine the origin of the item in question.

(ii) Suspend Government acceptance: The Government, in accordance with FAR 46.407, should not accept items that have non-domestic content in violation of the Berry Amendment. Continued Government acceptance without the required DNAD could create an ADA violation. The contracting activity should consider the issuance of a stop work order pending resolution of the violation. Allowing the contractor to continue performance after notification of the violation could subject the Government to additional claimed contract costs and further exacerbate the violation.

(iii) Suspend Payment: The contracting activity should ensure Defense Finance and Accounting Service does not issue payment for non-conforming products nor make any new unauthorized progress payments pending resolution.

(iv) Market Research: Determine whether the item in question has a domestic source available.

(v) Substitute Product: For those items where it is subsequently determined a domestic source is not available, contracting activities should coordinate the potential use of an alternate item (e.g., synthetic fiber vs. goat hair) with the technical specification office of primary responsibility.

TABLE OF CONTENTS

SUBPART 90.18 “PRICE PENDING” ITEMS

90.1800 Background

(a) This part describes the policy and procedures for adding “Price Pending” items to Long-Term Contracts (LTCs).

(b) Definition:

As used in this part-

“Price Pending” items represent supplies or services that are included in LTCs when pricing and the price reasonableness determination has been deferred pending the identification of an actual demand and the implementation of a pre-established pricing methodology or mechanism that has been agreed upon by the Government and vendor providing the supplies or service.

(c) Under limited circumstances “Price Pending” items may be included in LTCs. This may be appropriate for Strategic Material Sourcing (SMS) items and/or items that do not have a reliable price history and the future demands are not definite.

(d) The Chief of the Contracting Office must approve, in writing, the inclusion of “Price Pending” items prior to the issuance of the solicitation. The inclusion of “Price Pending” items may be considered only if all the following circumstances are present:

- Candidate items are SMS readiness items (Weapon System Indicator Codes (WSIC) F, L, T, G, M, W, H, P and X), as well as other items, having very low or no anticipated projected demands for the next three years (from the date of the award) making it impractical to obtain pricing or pricing information;

- A determination of whether the item is commercial or non-commercial should be documented;

- A determination has been made that the items are only available on a sole source basis from the contractor;

- The item must be included in a group of items considered for a LTCe;

- A not-to-exceed delivery schedule must be established for the items;

- The contractor must agree to supply the items once a demand is identified; and,

- A pre-established agreed upon pricing methodology items consistent with the applicable policies and guidelines of the FAR and DLAD must be incorporated into an Strategic Supplier Alliance or contract. This should be accomplished during negotiations of the SSA agreement or the contract. The Chief of the Contracting Office should consider amending established SSA agreements to include the agreed upon pricing methodology. [Price must be determined reasonable before the item(s) is purchased.]

(e) The contract must include appropriate language providing for the addition of NSNs as the price is definitized, within the scope of the contract.

(f) Additionally, contracting officers should consider if surplus is available to meet the requirement before considering price pending items.

SUBPART 90.19 COMPETITIVE SOURCING AND HIGH PERFORMING ORGANIZATIONS (HPOs)

90.1901 Letter of Obligation (LoO) Issuance, Acceptance, and Key Personnel Roles and Responsibilities

(a) This guidance establishes agency-wide policy for LoO issuance, acceptance, and roles and responsibilities of key personnel associated with the LoO. It is applicable to LoOs resulting from competitive sourcing competitions under Office of Management and Budget (OMB) Circular A-76 and the establishment of high performing organizations (HPOs). The LoO is a formal agreement between the government and the in-house service provider that incorporates the cost and performance obligations that the Most Efficient Organization (MEO) or HPO shall meet throughout the performance period.

(b) LoOs will be issued upon completion of the contest period for competitive sourcing competitions or prior to nominating an activity for HPO designation by the Deputy Under Secretary of Defense (Installations and Environment). Subject to J-75 concurrence, the Procuring Contracting Officer (PCO) will issue a LoO to either the Agency Tender Official (ATO) or the official responsible for the performance of the MEO for competitive sourcing competitions, or to the official responsible for the performance of the HPO when HPOs are established. The ATO and the official responsible for the performance of the MEO/HPO will hereafter be called the LoO designee.

(c) The Administrative Contracting Officer (ACO) will administer the LoO, including monitoring and enforcing adherence to performance requirements and standards, negotiating and executing modifications, resolving disputes, exercising options, assessing quality of performance and accepting services and work, and terminating performance when appropriate. The ACO will appoint a Contracting Officer’s Representative (COR) in the Continuing Government Activity (CGA) to monitor and accept services provided by the MEO/HPO. The COR will monitor the MEO/HPO performance in accordance with the quality assurance surveillance plan (QASP) to ensure compliance with the acceptable performance levels specified in the LoO.

(d) The LoO designee is responsible for the success of the MEO/HPO and has oversight responsibility for controlling quality and cost of the MEO/HPO in its execution of and adherence to the LoO over all performance periods. The LoO designee’s signature on the LoO signifies acceptance of its requirements, and the LoO designee thereby commits that the MEO/HPO shall meet the LoO’s cost and performance goals for all performance periods. The LoO designee may delegate authority over the MEO/HPO to a designee, but cannot delegate responsibility. The LoO designee’s responsibilities shall be reflected in the performance plan for the individual appointed as the LoO designee. The LoO designee shall not be in the same rating chain as the ACO.

90.1902 LoO Change Requests for MEOs and HPOs.

(a) This guidance establishes Defense Logistics Agency (DLA) policy for requesting review and approval of LoO change requests. Proper processing and documentation of changes to LoO requirements, cost changes, and resulting modifications is necessary to comply with recent policy on post-competition and HPO accountability and reporting; see OMB Memorandum for the President’s Management Council, April 13, 2007, subject: Validating the Results of Public-Private Competition; and, OMB Circular A-76, Attachment B, Paragraph E.4, “Monitoring Performance.”

(b) LoO change requests must be submitted using the mandatory template at DLAD PGI 90.1902(b) and shall be fully documented in writing. This documentation shall include a detailed explanation that justifies why the change is needed, if the MEO/HPO initiated the change, how the specific dollar amount requested is calculated, and an analysis of its cost impact. Each LoO change request that impacts the Agency Cost Estimate (ACE) shall be inputted by the MEO/HPO into COMPARE (or equivalent OSD-approved costing methodology or system) and have cost details on COMPARE adjustments to Lines 1 thru 6 on the Standard Competition Form across performance periods attached.

(c) LoO change requests resulting in a modification package must be coordinated with the COR prior to submittal to the appropriate approving official (see 90.1902(g)). The COR or designated representative will update the adjusted baseline cost to reflect the change, compare it to the updated LoO ACE to measure the cost impact of the change request to projected gross savings across performance periods, and provide a summary of this analysis in the request package when it is forwarded to the appropriate approving official. The Requiring Activity (RA) Commander, Director, or Senior Executive Service (SES) member (if not also the approving authority) will review any change request that exceeds $1 million (M) and provide appropriate recommendations and comments to the approving official. LoO changes will be documented in accordance with OMB Circular A-76, Attachment B, Subparagraph E.4.(4), “maintain the currency of the contract file, consistent with FAR Subpart 4.8, for contracts, MEO letters of obligation, and fee-for-service agreements.”

(d) Below are five examples that typically justify LoO change requests:

(1) Expanded requirements or increase in workload in excess of that designated in the Request for Proposal (RFP).

(2) Changes to performance requirements such as Acceptable Performance Levels, or establishing/changing the significance levels of nonconforming performance (e.g., critical, major, minor).

(3) Clarification of requirements; the need for these is often identified by the CGA during QASP implementation or while performing assessments.

(4) Policy changes initiated by statute, executive order, regulation, the Office of the Secretary of Defense, Headquarters DLA, or the RA.

(5) Conditions beyond the MEO/HPO’s control, such as RA-imposed hiring freezes and/or manpower reductions, Office of Personnel Management directed pay rate and benefits adjustments, or new collective bargaining agreements.

(e) Below are examples of situations that are not appropriate as the basis for LoO change requests. These types of changes will be documented by the initiator and reported to the ACO in order to assess actual MEO/HPO cost and performance against the Agency Tender/HPO. The documentation will become part of the LoO file.

(1) RA decision, when none of the above justifiable factors are present, to allow an MEO/HPO to adjust its current year “spending plans” in order to prevent mission failure.

(2) Conditions such as high civilian personnel turnover and/or inability to hire at the proposed grade/skill/hours available (e.g., part-time vs. full-time; temporary vs. permanent; upgrading positions for retention purposes) within the MEO/HPO.

(f) If the change would result in an increase of 30 percent or more in the MEO’s operating costs or total capital investment, a new competition will be conducted before an agency source can be used to perform the work. (See OMB Circular A-76, paragraph 5.d. and Attachment D, Definitions, regarding expansions.)

(g) Approval authority for LoO change requests is determined by calculating the value of change requests using the impact over the entire performance period, including option periods. Approval authority thresholds are as follows:

(1) The ACO will approve or disapprove change requests up to $1M in value.

(2) The Chief of Contracting Office will approve or disapprove all change requests that exceed $1M in value, but are less than or equal to $10M.

(3) The Head of Contracting Activity (HCA) will approve or disapprove change requests that exceed $10M.

(h) For requests equal to or under $10M, coordination and approval/disapproval of the change request decision will occur within four work weeks after the change request package is received by the RA CGA. For change requests that exceed $10M, the request will be submitted to the HCA for approval with a copy furnished to J-75. The ACO will report all newly-approved change requests to J-75 no later than 30 days after the end of each quarter.

(i) The LoO change request submitter may request review by the next higher approval authority when a change request up to $10M is disapproved. The request must be submitted within 10 working days from date of disapproval to be considered. The next higher approval authority has 10 working days after the request is received to resolve the matter.

(j) If the approving authority determines that urgent and compelling circumstances require that a change be implemented before a change request can be approved through the normal process, the approving authority may authorize the LoO designee to proceed with the change on an interim basis not to exceed 4 weeks. This interim approval does not eliminate the requirement to process a change request in accordance with this policy. The approval authority’s action, including supporting rationale, will be fully documented in the contract file and will be included in the change request submitted in accordance with this policy.

90.1903 A-76 Standard Competition Milestones.

(a) This guidance establishes policy regarding major acquisition milestones for competitive sourcing competitions under OMB Circular A-76. Competitive sourcing acquisitions will consist of three major acquisition milestones, hereafter called Milestones A, B, and C. These milestones occur at key decision points in the acquisition life cycle for standard competitions conducted under OMB Circular A-76.

(b) Milestone A – Announcement and Release of Solicitation Decisions. Milestone A has two decision points: the decision to announce the competition; and, the decision to release the solicitation for proposals. The two decision points are described below.

(1) Milestone A1 – Competition Announcement Decision: The Senior Procurement Executive (SPE) will make the decision to proceed with formal announcement of the competition. The RA’s preliminary planning team will provide a decision briefing and preliminary planning report to the SPE. General Counsel (DG), J-75, the A-76 Contracting Office (DSCC-DR), the Acquisition Operations Division (J-72), and the servicing DLA Human Resources Center will advise the SPE on the RA’s readiness to proceed with announcement. The SPE will decide at the briefing, in consultation with the RA’s Commander or Director, if a competition announcement should be made, if additional information is needed before making an announcement, or if an alternative course of action should be pursued in lieu of a competition.

(2) Milestone A2 – Decision to Release the Solicitation for Proposals: The Source Selection Authority (SSA) will make the decision to release the RFP. The SSA is responsible for the review and approval of the solicitation’s performance work statement, instructions, conditions, and notices to offerors or respondents, and evaluation factors for award; as well as reviewing and approving the acquisition plan and the source selection plan. The SSA will appoint a Source Selection Advisory Council (SSAC) to review the acquisition plan, source selection plan, and RFP in order to advise the SSA on the solicitation’s readiness for release. The SSAC will be comprised of senior-level representatives from the DG, the A-76 Contracting Office (DSCC-DR), Human Resources Directorate (J-1), the appropriate Headquarters DLA business office that has oversight of the RA, J-72, J-75, Financial Operations Directorate (J-8), and the RA. The SSA will appoint an individual from the SES to chair the SSAC. The A-76 Program Manager will serve as the Acting Chair in the absence of the SSAC Chair.

(c) Milestone B – SSA Performance Decision. The SSA will make the performance decision, which per OMB Circular A-76 marks the formal completion of the A-76 competition. The SSA’s performance decision is formalized by certifying the Standard Competition Form and is based on the recommendation from the SSAC, which reviews the source selection evaluations from the Source Selection Evaluation Board, the Price Evaluation Board, and the Contracting Officer’s evaluation of socioeconomic programs proposals from commercial offerors. While the SSA may use reports and analyzes prepared by others, the performance decision must represent the SSA’s independent judgment. The performance decision serves as the basis for awarding the competition to the agency tender, commercial offeror, or public-reimbursable tender.

(d) Milestone C – Competitive Sourcing Post-Award Accountability Review. A special Integrated Acquisition Review Board (I-ARB) chaired by the DLA SPE will meet to conduct a post-award accountability review within 90 days after 1 year of full operations by the service provider (SP). I-ARB membership will be in accordance with the Defense Logistics Acquisition Directive (DLAD) (see DLAD 7-104.90 (b) and (c)). The ACO will review and report on the SP’s performance and cost of operations, as applicable, and on any approved changes to the contract or letter of obligation to the I-ARB. The ACO will make a recommendation to the I-ARB regarding continued performance by the SP. The I-ARB will take the ACO’s report and recommendations under consideration and issue a determination on corrective actions to be taken, if any.

90.1904 Monitoring Responsibilities

(a) This section includes policy regarding the activities and responsibilities that occur following a performance decision under Office of Management and Budget Circular (OMB) A-76, Performance of Commercial Activities, or the designation of an activity as a High Performing Organization (HPO), and establishes agency-wide policy for implementing post-award performance monitoring of Service Providers (SP). An SP may be a Most Efficient Organization (MEO), private contractor, or public reimbursable source resulting from a competitive sourcing competition, or an activity designated as an HPO by the Department of Defense (DOD) Competitive Sourcing Official (CSO) or by the Defense Logistics Agency (DLA) CSO pursuant to DLAD 90.1906(c)(2). All performance monitoring of the SP will be performed by the Requiring Activity’s (RA) Continuing Government Activity (CGA) in support of the Administrative Contracting Officer (ACO).

(b) A post-award conference will be held after contract award for a private offeror, issuance of a letter of obligation (LoO) to an MEO or HPO, or issuance of an inter-service support agreement (ISSA) for a public reimbursable tender. The purpose of the conference is to review contract/Letter of Obligation (LoO)/ISSA requirements and phase-in/transition to ensure all parties have a clear understanding of the performance requirements, transition/phase-in plan of action and milestones, reports/submittals, change request procedures, and roles and responsibilities. Key participants will include the Procuring Contracting Officer (PCO) and the ACO issuing and administering the contract/LoO/ ISSA, the CGA’s Contracting Officer’s Representative (COR), the RA’s transition team leader (if one has been appointed), and the LoO designee for MEOs/HPOs or the contractor, as appropriate.

(c) The CGA is responsible for monitoring the SP’s performance in accordance with the RA’s quality assurance surveillance plan (QASP) to assure that the SP is performing to the acceptable performance levels (APLs) in the Performance Work Statement (PWS). The CGA will monitor the SP throughout all authorized performance periods and report results through the COR to the ACO. The monitoring will include assuring SP compliance with the terms of the PWS, inspecting and evaluating the SP’s quality control program, and transition during contract or LoO startup and closeout.

(d) The ACO will submit monthly reports to J-7 thru J-75 during transition and quarterly reports for the first twelve months of full performance for a post-award competition SP. Following the Milestone C review by a special Integrated Acquisition Review Board (I-ARB), the ACO will continue to submit quarterly reports to J-7 thru J-75 or as otherwise directed by the I-ARB. The ACO will submit quarterly reports to J-7 thru J-75 for HPOs beginning with the first full quarter of performance. ACO reports will focus on actual costs, performance against APLs, modifications, change requests/requests for equitable adjustments currently under review, and, if SP performance is unsatisfactory, steps being taken to address this, including status of the SP’s corrective action improvement plan and current surveillance results of those activities rated unsatisfactory.

90.1905 Department of Defense Commercial Activities Management Information System (DCAMIS)

(a) This section establishes agency-wide policy for the administration and use of DCAMIS. DCAMIS is the DOD database of record established to meet official reporting requirements on the conduct of A-76 competitions and the results from implementing A-76 decisions and HPOs. It is a web-based execution tracking system for the DOD Competitive Sourcing Program, which provides competition/HPO-specific data for a myriad of high-level government users (e.g., program managers, DOD components, Office of the Secretary of Defense (OSD), OMB, Government Accountability Office, Congress). RA commercial activities program offices (CAPOs) will use DCAMIS as the source for the data described in the DCAMIS A-76 Users Guide, October 1, 2007. The DCAMIS portal is located at https://www.dcamis.army.mil/default.asp.

(b) The Competitive Sourcing Division (J-75) is responsible for administering DCAMIS for DLA and for reviewing all cost and performance data input into DCAMIS.

(c) The RA CAPOs are responsible for inputting and validating all cost and performance data into DCAMIS for competitive sourcing MEOs/contractors and HPOs. RA CAPOs may delegate responsibility for inputting cost and performance data down to the CGA level. Access to DCAMIS will be limited on a “need to know” basis; no access will be provided to SP personnel. J-75 will review and approve all DLA requests for access to DCAMIS.

90.1906 MEO Re-competes / Competing HPOs

(a) This section establishes agency-wide policy for deciding, during the final year of performance in the LoO, whether an MEO should be re-competed or an HPO competed (See Pub. L 110-187, sec. 323, amending 10 USC 2461(a)(4)). Under the Program Budget Review process, all MEOs and HPOs will be programmed for competition announcement to take place six months after the completion of their final performance period. Six to nine months prior to the end of the final performance period as established in the LoO, MEOs and HPOs will be reviewed by a special I-ARB. The I-ARB will review performance for all periods completed up to but not including the final year of performance specified in the LoO, and may also consider performance during the final year to the extent information is available . The review will be based on assessments provided by the RA and ACO, as well as any supplemental independent assessments that have been conducted. The Senior Procurement Executive (SPE) may convene a special I-ARB at any time based on ACO reports of unacceptable or declining performance by an MEO/HPO.

(b) The assessment will consider at least the following factors, and may also consider other relevant factors:

(1) LoO cost compliance: actual cost against adjusted LoO cost (including approved

modifications);

(2) LoO performance compliance: quality of performance as measured against LoO requirements, to include acceptable performance levels;

(3) Overall change in authorized LoO cost from original LoO cost;

(4) Overall change in requirements (nature/extent; present/anticipated); and,

(5) Market assessment (contracting officer only).

(c) The ACO/RA will brief the review/assessment to the I-ARB. Following the briefing the I-ARB will recommend to the DLA CSO the most advantageous course of action to the Agency from the following options:

(1) Initiate preliminary planning to compete the requirement covered by the existing LoO;

(2) Extend the MEO/HPO for up to five more years as an Agency-recognized MEO/HPO; or,

(3) Take an alternative course of action (e.g., managed reduction, business process re-engineering, organizational realignment, etc.)

(d) If the DLA CSO decision is to compete the requirement covered by the existing LoO, the existing LoO will be allowed to expire at the end of the final performance period in order to allow the RA to use MEO/HPO resources to prepare for the competition.

(e) If the DLA CSO decision is to extend performance under the LoO for up to five additional years, the PCO will issue a new LoO effective the day following the previous LoO’s expiration. The RA, ACO, and extended MEO/HPO must comply with J-7/DLA Defense Logistics Acquisition Directive LoO policy with the following exceptions:

(1) DCAMIS will not be used unless the MEO/HPO is recognized by OSD.

(2) No “Milestone C” I-ARB is required for an extended MEO, unless otherwise directed by the SPE.