# DLAD PGI

- PGI 1.690-7 Notification, review and approval procedures.

- 15.606(b)(4) and (c)(changed requirements). A significant change also includes the situation where competition was initially received, but a sole offer ultimately resulted. For all other actions subject to HQ DLA approval in accordance with 1.690-6(c) a copy of the PNM and all addenda shall be submitted to J-3313 within 30 calendar days after completion of discussions. The contracting officer's compliance with previous headquarters conditions shall accompany or be documented in the PNM.

PGI 1.690-7 Notification, review and approval procedures.

(a) Notification. Written notification of the actions which are within three days of being forwarded for review pursuant to 1.690-3(b) and (c), and 1.690-6 should be provided to J-73 by facsimile transmission or e-mail. The notification should provide the information listed in subparagraphs (1) through (15) below. J-73 will advise by telephone or e-mail within one workday which of the identified actions/documents are to be forwarded to J-73 for review. Prospective suppliers/contractors shall not be advised that potential awards are to be or have been forwarded to HQ DLA for contract clearance and oversight. Those actions not selected for review need not be forwarded, nor is the PNM required to be submitted unless called for on a post-award basis pursuant to 1.690-6(e).

(1) Activity name requesting review and approval.

(2) Type of document requiring review.

(3) Solicitation Number.

(4) Proposed Contract Number.

(5) Number of offerors solicited.

(6) Type of contract action proposed.

(7) Item or services to be performed.

(8) Estimated acquisition value.

(9) Competitive action or single source.

(10) Government estimate.

(11) Number or offers solicited or received.

(12) Requirement for and/or exception from the requirement for certified cost or pricing data or other than cost or pricing data.

(13) Name of contract specialist and contracting officer.

(14) Date when package may be sent to HQ DLA for review action.

(15) Date when the review and approval is required.

(16) Show whether the solicitation/contract contains the review of the local contract review board or chief of contracting office.

(b) Local review. A local review is required (clearance and oversight office/review board pursuant to 1.690-2(c)) prior to submitting any contract action to HQ DLA for review and approval. A copy of the review results and the contracting officer's disposition of issues shall be a part of the file package sent to J-73.

(c) Pre-solicitation. Actions requiring HQ DLA pre-solicitation review and approval under 1.690-3(c) and 1.690-6 shall be submitted to J-73 ten workdays prior to the solicitation release date. Documentation shall include, as a minimum, copies of the solicitation and all amendments, the source selection plan, evaluation factors, evaluation standards, and acquisition plan. Files are to be forwarded to J-73.

(d) Pre-negotiation, sole bid/offer and options.

(1) Review and approval of sole bids and options under 1.690-6 requires submission of a narrative synopsis and duplicate originals of documentation supporting the contracting officer's determination pursuant to 14.408-2 or 17.207 to J-73.

(2) Review and approval of pre-negotiation briefing memoranda (PBM) under 1.690-3(c) and 1.690-6 requires the documents (duplicate originals) to be sent to J-73.

(i) Copy of the complete solicitation and all amendments. These may be mailed in advance of the actual request for review, and should be identified to the review package to follow.

(ii) Copy of any cost/price element reports, including all field pricing support reports (FAR 15.404-2(b)) and supplements.

(iii) If cost or pricing data are submitted and cost/price realism or cost analysis is performed, a comparative schedule, by cost element, showing:

(A) The proposed costs and profit;

(B) Audit recommended costs;

(C) Administrative Contracting Officer (ACO) pricing report recommended position;

(D) Activity cost/price element position;

(E) Weighted guidelines profit analysis calculations with cost of money calculations and form, if applicable;

(F) The contracting officer's established objectives;

(G) Reference notes to the PBM and/or pricing report sections which support elements of cost and profit/fee for each objective.

(iv) If offers are received from two or more offerors and award is to be effected as a result of receipt of adequate price competition the PBM shall contain:

(A) The contracting officer's determination and supporting information as to why acceptance of the initial offer is in the best interest of the Government, considering the potential for price reduction, or other considerations, if discussions were conducted,

or;

(B) If discussions are to be conducted, the contracting officer's rationale for establishing the competitive range, the offered prices, and the expected benefits and objectives to be achieved at the conclusion of discussions.

(v) If the offered price is based on established catalog or market prices of commercial items sold in substantial quantities to the general public, provide:

(A) The offeror's documentation (request for exemption from submission of cost or pricing data, copies of catalog pages, price lists or posted prices, etc.) supporting exemption.

> (B) A statement in the PBM regarding the contracting officer's verification of the data, and rationale for granting the exemption.

(C) The contracting officer's price analysis documentation supporting price reasonableness, including any field pricing reports, as cited in subparagraph (d)(2)(ii) above.

(vi) Other documentation as may be necessary and called for by J-73 to complete the review.

(e) Previous reviews. If an action was previously reviewed by J-73 pursuant to 1.690-3 or 1.690-6(b) or other HQ DLA element such as that required by 7.104-90, Acquisition Planning Executive Council (APEC), the PBM shall document compliance with any review comments or conditions issued as part of the previous review.

(f) Significant changes.

(1) Significant changes to the Government objectives submitted in accordance with 1.690-6(c)(4) (receipt of more than one offer) will not require further approval by HQ DLA. However, significant changes to all other approved objectives will require price negotiation memorandum (PNM) pre-award approval by HQ DLA. Significant changes are defined as those which exceed the maximum price objective reviewed by HQ DLA by 10 percent or $50,000, whichever is less, or those which meet the provisions of FAR

15.606(b)(4) and (c)(changed requirements). A significant change also includes the situation where competition was initially received, but a sole offer ultimately resulted. For all other actions subject to HQ DLA approval in accordance with 1.690-6(c) a copy of the PNM and all addenda shall be submitted to J-3313 within 30 calendar days after completion of discussions. The contracting officer's compliance with previous headquarters conditions shall accompany or be documented in the PNM.

(2) Contract actions meeting the approved PBM objectives do not require further HQ DLA review or approval prior to award, unless otherwise directed on a specific action, or as required by subparagraph (f)(1) above.

(g) Pre-award and post-award review. Unless otherwise directed, a complete contract file (including item/service specification or description) may be requested for those contract actions subject to review and approval in accordance with 1.690-6(d) and (e). Files shall be tabbed, assembled, and listed in accordance with DLA Form 678, Contract File Content List. A HQ DLA retain file shall be forwarded to include copies of all documentation contained at tabs: 3, 4, 5, 14, 20, 21, 22, 23, 24, 25, 29, 39, and 43 of the DLA Form 678, Contract Contents File Checklist.

(h) After HQ DLA review, the requesting activity will receive one of the following:

(1) Approval of the action with corrective comments which will not require the resubmission to HQ DLA of the reviewed document, except the corrective action must comply with all comments noted.

(2) Conditional approval of the action with comments which require a response to HQ DLA prior to proceeding to the next step in the contract action.

(3) Disapproval of the action where comment must be resolved and full resubmission of the contract action is required.

(i) All documentation pertaining to the request for HQ DLA clearance and approval must be filed with the official contract file either by hard copy, email attachment or scanned with the electronic contract file.

(j) Defense Media Activity shall forward all Task Orders or Service Orders exceeding $100,000 to HQ DLA, J-73 for review and approval prior to being released to the contractor. Submit via email with the Task Order or Service order all documentation pertaining to funding, competition, price analysis, legal review and internal review.