# DLAD PART 11

- 11.002 Policy.

- SUBPART 11.1 - SELECTING AND DEVELOPING REQUIREMENTS DOCUMENTS

- 11.103 Market acceptance.
- 11.107 Solicitation Provision

- 11.107-90

- SUBPART 11.2 - USING AND MAINTAINING REQUIREMENTS DOCUMENTS

- 11.201 Identification and availability of specifications.

- 11.204-91
- 11.204-92
- 11.204-93
- 11.204-94
- 11.204-95
- 11.204-96
- 11.204-97
- 11.204-98
- 11.204-99
- 11.204-100 Drawing Limitations (TACOM DLR - Land and Maritime Supply Chain)
- 11.204-101 Special Notice of Contractor Responsibilities for Components and Tooling (AMCOM DLR – Aviation Supply Chain)
- 11.204-102 Required Delivery for Orders (AMCOM DLR – Aviation Supply Chain)
- 11.204-103 Deliveries or Performance – Time of Delivery (NAVICP DLR – Aviation Supply Chain)
- 11.272-90 Alternate preservation, packaging, and packing.

- 11.274 Item Identification and valuation

- 11.274-4 Contract Clause
- 11.274-4(90)
- 11.274-4(91)

- 11.290 – Bar coding.
- 11.291 Unit package marking requirement for component lead finish – contract clause.

- SUBPART 11.3 - ACCEPTABLE MATERIAL

- 11.301 Definitions.
- 11.302 Policy.

- 11.302-90 Use of approved sources.
- 11.302-91 Management of critical safety items (CSIs).
- 11.304-90 Solicitation provision and contract clauses for critical safety items (CSIs).
- 11.304-91 Solicitation provisions and clause for Government surplus material.
- 11.304-92 Solicitation clause for retention of traceability documentation.
- 11.304-93 .Contract CLause

- SUBPART 11.4 - DELIVERY OR PERFORMANCE SCHEDULES

- 11.401 General.

- 11.401-90 Responsibilities.
- 11.401-91 Obsolete components or materials.
- 11.401-92 Potential alternative sourcing strategies.

- 11.401 (93) Insert the clause at DLAD 52.211-9068, Continuance of Performance During any State of Emergency (Republic of Korea) (DESC), in DESC solicitations and contracts when performance is in the Republic of Korea.
- 11.402 Factors to consider in establishing schedules

- 11.402-90 Time Definite Delivery (TDD) Standards
- 11.402-91 Appropriate exclusions for applying TDD standards.
- 11.402-92 Materiel Management review of DVD items
- 11.402-93 DVD shipments in the DOD organic distribution system
- 11.402-94 Customer Direct post-award monitoring and correction actions.
- 11.404-90 Solicitation provision – Business Systems Modernization (BSM) delivery terms and evaluation.
- 11.404-91
- 11.404-92

- 11.404 (a) Supplies or Services
- 11.404 (a)(1)(90) 52.211-9051, Time of Delivery, shall be used in fixed quantity RFPs, solicitations, and awards. For urgent buys requiring an accelerated delivery schedule, also insert FAR 52.211-11, Liquidated Damages, as appropriate in accordance with FAR 11.501 and 11.503.
- 11.404 (a)(1)(91) 52.211-9020, Time of Delivery – Accelerated Delivery, may be used in solicitations and awards when accelerated delivery is permitted at no cost or obligation to the government. Prior approval for acceleration from the Contracting Officer or other government representative is not required.
- 11.404 (a)(1)(92) 52.211-9049, Time of Delivery – Incremental Delivery, shall be used in solicitations and awards when incremental delivery is requested by the Government. Delivery shall be included in the solicitation as an evaluation factor.

- 11.404-93 Base Installation
- 11.404-94
- 11.404-94 Time of Delivery – Ordering Office
- 11.404-96
- 11.404-97
- 11.404-98
- 11.404-99

- SUBPART 11.5 - LIQUIDATED DAMAGES

- 11.502 Policy.
- 11.503 Contract Clauses
- 11.503 (a)(90)

- SUBPART 11.6 - PRIORITIES AND ALLOCATIONS

- 11.602 General.
- 11.603 (f)

- 11.603-90 Procedures for placement of contracts when normal solicitations fail.

- 11.604 Solicitation provision and contract clauses.

- SUBPART 11.7 - VARIATION IN QUANTITY

- 11.701 Supply contracts.

- 11.701-90 Procedure for closing contracts with inconsequential amounts undelivered.

- 11.703 Contract clause.
- 11.703 (c) The clause at 52.211-9021 should be used in all solicitations and awards for wire and cable, FSC 6145. Include FAR 52.211-16 when 52.211-9021 is used.

- SUBPART 11.90 – PRODUCT PHASE-OUT

- 11.9001 Notification of product phase-out.

- 11.9001-90 Solicitation provision and contract clause.

PART 11

DESCRIBING AGENCY NEEDS

TABLE OF CONTENTS

11.002 Policy.

SUBPART 11.1 - SELECTING AND DEVELOPING REQUIREMENTS DOCUMENTS

11.103 Market acceptance.

11.107 Solicitation Provision

SUBPART 11.2 - USING AND MAINTAINING REQUIREMENTS DOCUMENTS

11.201 Identification and availability of specifications.

SUBPART 11.204 SOLICITATION PROVISIONS AND CONTRACT CLAUSES

11.272 Alternate Preservation, Packaging, and Packing

11.274 Policy for item unique identification of Government property

11.290 Bar Coding

11.291 Unit package marking requirement for component lead finish – contract clause.

SUBPART 11.3 - ACCEPTABLE MATERIAL

11.301 Definitions.

11.302 Policy.

11.302-90 Use of approved sources.

11.302-91 Management of critical safety items (CSIs).

11.304-90 Solicitation provision and contract clauses for critical safety items (CSIs).

11.304-91 Solicitation provisions and clause for Government surplus material

11.304-92 Solicitation Clause

11.304-93 Contract Clause

SUBPART 11.4 - DELIVERY OR PERFORMANCE SCHEDULES

11.401 General.

11.401-90 Responsibilities.

11.401-91 Obsolete components or materials

11.401-92 Potential alternate sourcing strategies

11.402 Factors to consider in establishing schedules.

11.402 PGI

11.402-90 Time Definite Delivery (TDD) Standards

11.402-91 Potential appropriate exclusions for applying TDD standards.

11.402-92 Materiel Management review of DVD items

11.402-93 DVD shipments in the DoD organic distribution system.

11.402-94 Customer Direct post-award monitoring and correction actions.

11.404-90 Solicitation provision

11.404-93 Base Installation

SUBPART 11.5 - LIQUIDATED DAMAGES

11.502 Policy.

SUBPART 11.6 - PRIORITIES AND ALLOCATIONS

11.602 General.

11.603-90 Procedures for placement of contracts when normal

solicitations fail.

11.604 Solicitation provision and contract clause.

SUBPART 11.7 - VARIATION IN QUANTITY

11.701 Supply contracts.

11.701-90 Procedure for closing contracts with inconsequential

amounts undelivered.

11.703 Contract clause.

11.90 PRODUCT PHASE-OUT

11.9001 Notification of product phase-out

11.9001-90 Solicitation provision and contract clause.

11.002 Policy.

(a)(1)(ii)(90) Agencies are responsible for determining their requirements and the best strategy for meeting those requirements. An agency's requirement is not overly restrictive of competition as long as the agency can show that its decisions are --

(A) Based on actual experience, engineering analysis, or similar rational bases; and

(B) Rationally related to ensuring its legitimate requirements will be met.

(91) To ensure that the Government's needs are met in the most effective manner, agencies must define their requirements in terms that --

(A) Take optimum advantage of distribution and support options, methods for assuring reliability, and other capabilities available in the marketplace that the agency determines appropriate for the type of item or service being acquired; and

(B) Exclude those items or services that cannot meet the agency's legitimate requirements.

SUBPART 11.1 - SELECTING AND DEVELOPING REQUIREMENTS DOCUMENTS

11.103 Market acceptance.

(a) Approval authority for requiring offerors to demonstrate market acceptance pursuant to FAR 11.103(a) is delegated to the contracting officer. When the contracting officer considers it appropriate to obtain documentation to confirm that the market acceptance criteria have been met, in addition to any documentation that may be specified in the requirements document, the contracting office may use the provision at 52.211-9001, Market Acceptance.

(90) A market acceptance requirement is a requirement that an item must have performed in a certain way in a specified environment that approximates or reasonably relates to the agency's intended application. The use of market acceptance criteria is consistent with the definition of full and open competition in FAR Part 6 as it relates to agency needs. A market acceptance requirement may be used to establish either --

(i) A minimum threshold or performance that will be considered a demonstration that the item has been adequately market-tested or field-proven; or

(ii) An evaluation method that awards partial credit for items that meet part of the requirement.

(b)(90) Market research provides the information from which it can be determined whether previously-developed items exist that can meet the agency's needs and what methods are used in that marketplace to assure reliability. Then it must be shown, through a careful analysis of the intended application and the marketplace capabilities available, that the optimum strategy for meeting the Government's needs is to require items that have been field-proven in specified ways.

(b)(91) When an agency requires that an item must have achieved market acceptance, the agency must specify exactly what that means in the context of the particular acquisition. The meaning will vary widely, depending upon what benefit the agency is attempting to gain by using such a strategy.

(b)(92) When an agency's primary goal is to acquire the latest technology, other methods of assuring reliability are more appropriate than market acceptance. Particularly when acquiring items in a rapidly evolving technological field over a long-term contract, an agency will not be able to demonstrate that an item that is currently field-proven would be the best item for meeting the agency's needs several years from now.

(e) The preparing activity will maintain documentation that describes the technical aspects of the item and supports the market acceptance requirement.

(1) Some examples of the type of rationale that could support requiring a market-tested item include:

(90) Minimize design and engineering risk;

(91) Eliminate costly and time-consuming field-testing and debugging of complex items;

(92) Assure an item can be fielded quickly enough to meet an urgent requirement;

(93) Assure an established end item is routinely supported by spare and repair parts;

(94) Preclude untested or experimental units; or

(95) Assure compliance with Federal safety and environmental requirements.

(2) The market acceptance requirement may be whatever can reasonably be demonstrated --based on past experience, engineering analysis, market research and similar rational bases --to be an indicator that the item will meet the intended application. Some examples of market acceptance criteria include requirements that an item must --

(90) Have been announced to the public, indicating the manufacturer's commitment to produce the product;

(91) Be commercially available for delivery within a reasonable time;

(92) Be off-the-shelf, meaning that the products offered do not require substantial modification;

(93) Be in current production, meaning that the item is no longer in the design phase but is started on assembly line production with the expectation that such production will continue;

(94) Be state-of-the-art, meaning that the product is the offeror's latest version of that product;

(95) Have been previously sold to commercial or other customers, sometimes for a specified period of time or with a user base of a specified number;

(96) Have met specified reliability and performance requirements;

(97) Be supported by specified maintenance and logistics arrangements;

(98) Be the successor to a product having a specified history of sales and performance; or

(99) Meet some combinations of the above criteria.

(100) When the contracting officer considers it appropriate to obtain documentation to confirm that the market acceptance criteria have been met, in addition to any documentation that may be specified in the requirements document, the contracting office may use the provision at 52.211-9001, Market Acceptance.

11.107 Solicitation Provision

11.107-90

Use 52.211-9039, Compliance with Coast Guard Requirements, when item description states that preproduction sample approval by Coast Guard is required. Buyer will establish a separate line item on PR and add an additional 145 days to time of delivery to allow time for sample submission and approval. When this clause was included in the solicitation and the proposed awardee is awaiting approval from the Coast Guard, add only 55 days for delivery of the sample quantities. If offeror provides documentation that the item has already been approved by the Coast Guard, the requirement should be waived and no additional delivery time should be added.

For Simplified Acquisitions, any resulting award that includes the approval requirement must be a bilateral purchase order. Include FAR 52.249-8 in any resulting bilateral award. Include FAR 52.212-4 in commercial acquisitions resulting in a bilateral award. If the contractor has provided proof of Coast Guard acceptance then the approval requirement is waived and the resulting award does not need to be bilateral.

SUBPART 11.2 - USING AND MAINTAINING REQUIREMENTS DOCUMENTS

11.201 Identification and availability of specifications.

(b) Mylar drawings. When Mylar drawings are listed in the item description, the Contracting Officer shall use the clause at DLAD 52.211-9018, Availability of Mylar Drawings and adjust the required delivery schedule accordingly to allow time for the successful offeror to receive the drawings. This clause is not intended for use in commercial acquisitions.

(90) Contracting personnel are not authorized to make any change in the unit of issue on stock buys without approval from either technical or supply personnel in accordance with local procedures.

11.204-90 Shipments of dangerous or hazardous goods or materials. Insert the clause at 52.211-9013 in all solicitations and awards requiring shipment of dangerous or hazardous goods or materials to an Air Port of Embarkation (APOE).

11.204-91

Use 52.211-9044, New Drug Applications, in all solicitations for pharmaceuticals and drugs.

11.204-92

Use 52.211-9045, Pre-market Notification, in solicitations for medical devices, except for military unique items.

11.204-93

Use 52.211-9046, FDA Compliance, in solicitations and contracts for non-standard drugs, pharmaceuticals, biological and chemical items to be shipped to overseas destinations and subsistence items.

11.204-94

52.211-9030, Annotation of Shipping Documents for Bulk Lubricating Oil, Engine, Grade OE/HDO 40, provision shall be utilized for solicitations for Bulk Lubricating Oil, Engine, Grade OE/HDO 40, MIL-L-2104E.

11.204-95

Use 52.211-9031, Marking Requirements for High and Low Pressure Cylinders, in solicitations and awards for FSC 8120, cylinders.

11.204-96

Use 52.211-9033, Packaging and Marking Requirements, in all solicitations and awards.

11.204-97

Use 52.211-9034, Packaging/Marking Requirements for DMS Buys, in all Simplified Acquisition Procedure solicitations and awards for FSC 5962 DMS buys requiring long term storage.

11.204-98

Use 52.211-9035, Marking Requirements, in all solicitations/contracts for electrical components in FSG 59.

11.204-99

Use 52.211-9036, Physical Identification/Bare Item Marking, in all solicitations and awards for Land and Maritime supply chains.

11.204-100 Drawing Limitations (TACOM DLR - Land and Maritime Supply Chain)

Insert the clause at 52.211-9064, Drawing Limitations (TACOM DLR – Land and Maritime Supply Chain), in solicitations and awards for Land and Maritime supply chain acquisitions of depot level reparable items managed by TACOM when the Technical Data Package (TDP) transmittal form (STA FL-1) indicates any of the following:

(a) Block “a” is checked to indicate “Technical Data Package (TDP) is competitive.”

(b) The appropriate portion of Block “b” is checked to indicate “TDP competitive with purchased part(s) estimated at: ( ) less than 10%, ( ) 10-50% or ( ) more than 50% of the total item cost.”

(c) Block “e” is checked to indicate “Top drawing is source controlled.” When Block e is checked, the Acquisition Specialist shall ensure—

(1) Military and vendor part number(s) are listed in the solicitation; and

(2) Drawings attached to the STA FL-1 are incorporated into the order.

11.204-101 Special Notice of Contractor Responsibilities for Components and Tooling (AMCOM DLR – Aviation Supply Chain)

Insert the clause at 52.211-9065, Special Notice of Contractor Responsibilities for Components and Tooling (AMCOM DLR – Aviation Supply Chain), in solicitations and awards for Aviation supply chain acquisitions for depot level reparable items managed by AMCOM when the acquisition is valued greater than $100,000 and Government Furnished Property (GFP) is to be provided.

11.204-102 Required Delivery for Orders (AMCOM DLR – Aviation Supply Chain)

Insert the clause at 52.211-9066, Required Delivery for Orders (AMCOM DLR – Aviation Supply Chain), in solicitations and awards for BOAs, IDIQs, and Requirements type contracts for Aviation supply chain depot level reparable items managed by AMCOM.

11.204-103 Deliveries or Performance – Time of Delivery (NAVICP DLR – Aviation Supply Chain)

Insert the clause at 52.211-9067, Deliveries or Performance – Time of Delivery (NAVICP DLR – Aviation Supply Chain), in solicitations and awards for Aviation Supply Chain acquisitions of depot level reparable items managed by NAVICP if the Government desires delivery by a certain time but requires delivery by a specified later time, and the delivery schedule is to be based on the date of the contract. When this clause is used, the Acquisition Specialist shall complete the fill-ins in paragraphs (a) and (c); and the clause at 52.211-9051, Time of Delivery, shall not be used.

11.272-90 Alternate preservation, packaging, and packing.

Use 52.211-9041, Lengths, Tickets, Packaging, Marking of Cuts or Pieces in solicitations and contracts for the manufacture of textile piece goods (i.e., all woven textiles purchased in continuous lengths), and in solicitations for dyeing, finishing, or similar services on GFP textile piece goods, where the applicable specification requires a minimum length for pieces or rolls.

11.274 Item Identification and valuation

11.274-4 Contract Clause

11.274-4(90)

Use 52.211-9047, Manufacturer’s Make or Model Number, in solicitations for items identified by a generic NSN as evidenced by Acquisition Advice Code (AAC) W and a statement in the special message field of the PR trailer "NSN is AAC W and for acquisition purposes only."

11.274-4(91)

Use 52.211-9048, Data Name Plates, in Subsistence acquisitions for items in FSCs 4110, 7310 and 7320.

11.290 – Bar coding.

(a) Policy. When using MIPR and non-DLA contracts, bar coding requirements must be addressed whenever possible. The lack of bar coding will not automatically preclude the use of such instruments. However, if a contract issued outside DLA is utilized repeatedly that doesn’t have bar coding requirements, the issue should be raised with the contracting agency in an attempt to influence the decision towards the use of bar coding. Such attempts should be fully documented.

(b) Contract clauses.

(b) Contract clause. Insert the clause at 52.211-9010, SHIPPING DOCUMENTATION – MIL-STD-129P, in all solicitations and awards that require contractor shipments of packaged materiel to the Government. For BSM acquisitions, insert the clause with its Alternate I. This clause is authorized for use in acquisitions of commercial items conducted using FAR Part 12 (see 12.301(f)(102)).

11.291 Unit package marking requirement for component lead finish – contract clause.

Insert the clause at DLAD 52.211-9063 in all solicitations and awards when the Purchase Order Text (POT) states that DLAD 52.211-9063, Unit Package Marking Requirement for Component Lead Finish, applies; including when acquisitions are conducted using FAR Part 12.

SUBPART 11.3 - ACCEPTABLE MATERIAL

11.301 Definitions.

"Actual manufacturer," "approved source," "critical safety item (CSI)," "design control activity," "prime contractor," and "rebranding" are defined in the clause at 52.211-9005, Conditions for Evaluation and Acceptance of Offers for Critical Safety Items.

"Alternate product" and "exact product" are defined in the provision at 52.217-9002, Conditions for Evaluation and Acceptance of Offers for Part Numbered Items

“Critical application item” (CAI), as used in this subpart, means an item that is essential to weapons performance, operation, the preservation of life, or safety of operating personnel, as determined by the Military Services.

“Surplus material,” as used in this subpart, means new, unused material that was purchased and accepted by the U.S. Government and subsequently sold by the Defense Reutilization and Marketing Service (DRMS), by contractors authorized by DRMS, or through another Federal Government surplus program. The terms “surplus” and “Government surplus” are used interchangeably in this subpart.

11.302 Policy.

(b)(90) DLA policy is to consider offers of surplus material in accordance with solicitation requirements and to make optimum use of surplus material when acceptance of such offers is in the best interest of the Government. This policy is intended to ensure that offers of surplus material receive consistent, timely and reasonable treatment. It is also intended to clarify DLA procedures and maximize streamlining. In all cases, surplus material accepted by the Government must conform to technical requirements in the solicitation. Proper consideration of surplus offers can significantly reduce material cost and delivery time, which benefits our customers and makes DLA a more attractive source of supply. Surplus material is usually readily available, which can make it particularly valuable for satisfying urgent requirements. The nature of our business situation demands that we prudently use the services of surplus dealers, who provide a warehousing capability that helps meet our unprogrammed demands for material. (Guidance for technical/quality specialists to complement this policy is provided in the DLA Technical Support Policy and Procedures Deskbook, Appendix L. The Deskbook can be accessed electronically at https://today.dla.mil/j-3/j-334/techsuppdeskbook.htm .)

(b)(91) Market research requirements for establishing and maintaining long term contracts (LTCs). Business rules governing establishment and maintenance of LTCs by ISTs and SMSGs are addressed in the Procurement Business Rule for Long Term Contracting, which can be accessed at https://polh.bsm.dla.mil/.

(A) When establishing LTCs, ISTs and SMSGs shall–

(1) Conduct market research to determine availability of surplus material; and

(2)(i) If market research indicates all or a portion of the recommended buy (RB) quantity of an item is available as surplus material, reduce the RB quantity for that item by the quantity that is available as surplus; and

(ii) Acquire the quantity removed from the LTC separately, using whatever procedures are appropriate to the circumstances (e.g., competitive solicitation, emergency support procedures for high priority requirements, etc.)

(B) When an NSN is a candidate for addition to an existing LTC, ISTs and SMSGs shall–

(1)(i) Obtain Product Specialist certification that item is sole source to holder of the long term contract;

(ii) Post announcement in FedBizOps stating NSN has been targeted for addition to the LTC; and

(2) If responses to FedBizOps notice indicate all or a portion of the recommended buy (RB) quantity of the item is available as surplus material, reduce the rb quantity for that item by the quantity that is available as surplus material before adding the item to the ltc. the quantity removed from the ltc will be acquired separately, using whatever procedures are appropriate to the circumstances (e.g., competitive solicitation, emergency support procedures for high priority requirements, etc.)

(C) When an offer of surplus material is received in response to a solicitation for an LTC, the contracting officer shall consider whether the quantity of surplus material meets the requirements of the solicitation. If so, the contracting officer shall consider the offer of surplus material to be responsive to the solicitation. If not, the contracting officer shall reject the offer as not conforming to the solicitation and shall forward a summary of the offer to the item manager (supply planner). The item manager (supply planner) shall take appropriate action in the best interest of the Government, based on the item manager’s (supply planner’s) judgment; such as initiating a separate, fixed-quantity purchase request, if warranted by the agency’s supply position. Any action(s) by the item manager (supply planner) must be taken in coordination with the office that identified the item(s) for placement on an LTC (e.g., the Strategic Material Sourcing Group or Integrated Supplier Team).

(ii) Do not evaluate offers of surplus material when the technical/quality specialist has included a statement in the Technical Guidance Information (TGI) field on the purchase request (PR) trailer advising that offers of surplus material will not be considered for the item being acquired. (See 11.302(b)(92)(iii).) The ESA must provide written notice that offers of surplus material will not be considered for specified items or categories of items, with supporting documentation in sufficient detail to demonstrate that the restriction is necessary to satisfy the needs of the Government.

(iii) Establish internal audit procedures to ensure that offers of surplus material are processed in accordance with the policy in this Subpart 11.3 and in Appendix L.

(A) Ensure that actions related to referrals, evaluations, notification of offerors, and award decisions are made in a consistent, timely and reasonable manner, in order to provide offerors with an opportunity to compete in accordance with the Competition in Contracting Act.

(B) Ensure that the following conditions, in and of themselves, are not treated as an acceptable basis for excluding an offer of surplus material from consideration:

(1) Dollar value of the acquisition;

(2) Age of the offered material;

(3) When the buy is for stock;

(4) When the offer is for less than the solicited quantity;

(5) When material is not in the original package; or

(6) Past or average Engineering Support Activity (ESA) response times, unless substantiated by data specific to evaluations of surplus offers by the cognizant ESA.

(7) Offer is in response to a solicitation for a long-term contract (see 11.302(b)(91)(C), 11.304-91(a)(2), and 15.305(b)).

(C) For automated offers, ensure that supporting documentation provided by an offeror of surplus material is promptly distributed to the contracting officer for timely consideration.

(D) Ensure that technical acceptability of an offer of surplus material is applied only to the current procurement.

(iv) Ensure that the technical/quality specialist has considered all information provided by the offeror concerning technical acceptability of the offered surplus material. If the offer of surplus material is found to be technically unacceptable, ensure the technical/quality specialist has documented the specific technical reasons why the surplus material is technically unacceptable.

(v) Ensure that when acquiring critical safety items, offerors meet the additional requirements in 52.211-9005 (see 11.302-91).

(b)(92) Contracting officer responsibilities and procedures.

(i) Unless 11.302(b)(92)(iii) applies, insert the clause at 52.211-9000, Government Surplus Material, and the provision at 52.211-9003, Conditions for Evaluation of Offers of Government Surplus Material, as prescribed at 11.304-91(a); except that in automated solicitations these can be replaced by a statement referring offerors of surplus material to a source of information where complete conditions for evaluation are detailed (e.g., “Offerors of Surplus Material – See EBB Sign-On Instructions”). When acquiring critical safety items, also follow 11.302-91.

(ii) When use of a warranty provision is desired and offers of surplus property will be considered, incorporate a warranty clause as prescribed in FAR Subpart 46.7 or DFARS 46.7, to ensure that warranty provisions are applied to all contractors, whether manufacturers or dealers and whether or not surplus material is offered.

(iii) Insert the provision at 52.211-9009, Non-Acceptability of Government Surplus Material, as prescribed at 11.304-91(b), when the TGI field on the purchase request (PR) trailer sheet indicates that offers of surplus material will not be considered for the item being acquired (see 11.302(b)(91)(ii)).

(iv) When it is determined in accordance with 52.211-9003 that an offer of surplus material is otherwise in line for award, the contracting officer shall—

(A) Coordinate with the supply planner and the product specialist to confirm that there is sufficient time before proposed award to permit evaluation of the offer of surplus material, and that delay of award will not result in failure to meet customer need date or otherwise adversely affect the Government. This determination shall be based on the Agency supply position and lead time required for a technical evaluation. B enefits that may accrue to the Government, if the offer of surplus material were accepted, must be weighed against any adverse effects that would result from delay of award. If the benefits are significant, consideration shall be given to requesting expedited evaluation. If it is determined that award will not be delayed to evaluate the offer of surplus material, the contracting officer shall fully document the basis for this determination in the contract file;

(B) If it is determined that award will be delayed to evaluate the offer of surplus material, promptly refer the offer to the technical/quality specialist for a determination of technical acceptability. Do not hold up the technical referral while waiting for another offer or another offeror’s supporting documentation. Include in the technical referral the completed 52.211-9000 and all supporting documentation provided by the offeror. While it is preferred that an offeror fill out the clause completely, failure to provide all information is not a basis for automatic rejection of the surplus offer. (For critical safety items, also include a copy of 52.211-9005 and supporting documentation provided by the offeror. See 11.302-91.) Provide all relevant information that will help the technical/quality specialist prioritize the evaluation. Such information includes, but is not limited to, the following: the priority or urgency of the requirement, the quantity being acquired, whether backorders exist, anticipated savings in unit price and/or delivery time if the surplus offer is approved, whether there are other sources, if the surplus offer is the only offer received, etc.

(v) If the technical/quality specialist advises the material is technically acceptable, award can be made to the offeror of surplus material; except that award must not be made to a surplus offeror who is no longer in line for award (e.g., due to costs for special testing or inspection requirements that would have to be included in the contract).

(vi) If the technical/quality specialist has forwarded special inspection or testing requirements, ensure that these are incorporated into the award. Contract requirements must also ensure that the Government has the right to access contractor premises and to select the surplus material to be inspected or tested.

(vii) If an offer of surplus material is determined technically unacceptable, the technical/quality specialist must provide supporting documentation that cites specific reasons why the material is technically unacceptable. Promptly notify the offeror that the offer was rejected (see 11.302(b)(92)(xi)(C)).

(viii) If the data provided by an offeror of surplus material are determined to be inadequate, the technical/quality specialist must provide supporting documentation that cites specific reasons why the data are inadequate. Promptly notify the offeror that the offer of surplus material will not be evaluated (see 11.302(b)(92)(xi)(B)(1)); or, if the contracting officer determines it is in the best interest of the Government, the offeror may be given an opportunity to provide the additional data (11.302(b)(92)(xi)(A)). The request for additional data may be made by the contracting officer or technical/quality specialist, orally or in writing. If the technical/quality specialist is to contact the offeror, the contracting officer’s coordination must be obtained.

(ix) If the item being acquired is otherwise procurable and the item manager does not concur in forwarding the surplus offer for ESA review or re-evaluation, the technical/quality specialist must advise the contracting officer and forward the item manager’s rationale why the surplus offer will not be forwarded to the ESA. (However, if the time to effect delivery from the offeror next in line for award will exceed the time to evaluate and effect delivery of the surplus material, the item manager must concur in an ESA referral.) Promptly notify the surplus offeror that the offer of surplus material will not be evaluated (11.302(b)(92)(xi)(B)(3)). Award may be made to the offeror next in line for award; however, award must not be made for a quantity that exceeds the immediate need (e.g., the backordered quantities).

(x) If the cognizant ESA does not respond to a DLA Form 339, Request for Engineering Support, within the estimated timeframe established by the technical/quality specialist in accordance with Appendix L, the technical/quality specialist must contact the ESA to determine the status of the evaluation. If the item being acquired is otherwise procurable, and the item manager confirms that the anticipated ESA response date is unacceptable, the technical/quality specialist must advise the contracting officer and forward the item manager’s rationale why additional time cannot be allowed for the ESA to evaluate the surplus offer. Promptly notify the surplus offeror that the offer of surplus material will not be evaluated (11.302(b)(92)(xi) (B)(3)). Award may be made to the offeror next in line for award; however, award must not be made for a quantity that exceeds the immediate need (e.g., the backordered quantities).

(xi) When the following conditions apply, promptly notify an offeror of surplus material and provide the information as described below. Notification must be made electronically if possible and not later than upon release of award.

(A) When the contracting officer determines it is in the best interest of the Government to give the offeror an opportunity to submit additional data (11.302(b)(92)(viii)), provide specific data requirements to the offeror, provide a specific timeframe for the response to be submitted (generally 3-5 days), and advise that the offer may not be considered if the timeframe is not met.

(B) When the offer of surplus material will not be evaluated because --

(1) Data provided was inadequate for evaluation, and the offer has been deemed incomplete. Cite specific reasons why the data are inadequate. (See 11.302(b)(92)(viii).

(2) The offeror was given an opportunity to provide additional data to support its offer and failed to respond with adequate and timely information. Provide specific details to the offeror to support the contracting officer’s statement(s). (See 11.302(b)(92)(viii).)

(3) The item manager does not concur in forwarding the surplus offer for review or re-evaluation, or to accommodate an extension of the ESA response time. Use the rationale provided by the item manager and provide specific reasons to the offeror why the surplus offer will not be evaluated. (See 11.302(b)(92)(ix) and (x).)

(C) When the offer of surplus material was evaluated and rejected, either locally or by the cognizant ESA, provide the specific technical reasons for the rejection.

(xii) When an offeror of surplus material is the prospective awardee, the contracting officer shall refer the acquisition to the technical/quality specialist (product specialist), who shall determine whether quality assurance will take place at source or destination. If the technical/quality specialist (product specialist) determines inspection/acceptance (I/A) shall be at source and the award will be administered by DCMA, the technical/quality specialist (product specialist) shall prepare a Quality Assurance Letter of Instruction (QALI). The contracting officer shall advise the technical/quality specialist (product specialist) what should be included in the QALI. All QALIs shall include at a minimum:

(A) A copy of the completed clause at 52.211-9000, with instructions to verify the representations and documentation provided by the offeror. Inspection criteria must be consistent with the basis for determining the surplus material acceptable. (For example, if previous Government ownership was demonstrated by documentation other than a Government contract number, the current contract must not require the surplus material to be identified to a previous Government contract.) Inspection criteria must include special inspection or testing requirements forwarded by the technical/quality specialist (product specialist), if any. (Criteria may also include dimensional inspection, if appropriate; or destructive testing, depending on the age of the material. Obtain the recommendation of the technical/quality specialist (product specialist) to determine the need for additional criteria.)

(B) A requirement for the QAR to notify the contracting officer if, at the time of Government source inspection, the QAR is denied access to the contractor’s plant or not permitted to select the material to be inspected.

.

(xiii) Take appropriate action, which may include cancelling the purchase order or terminating the contract for default, and assessing appropriate damages when –

(A) Surplus material tendered for acceptance does not conform to contract requirements; or

(B) The QAR advises that the contractor has refused to provide access to its plant or to permit the QAR to select the surplus material to be inspected at the time of Government source inspection.

(

11.302-90 Use of approved sources.

It is the policy of this agency to ensure that DLA acquires only items produced by, or under the direction of, approved sources. It is also agency policy to apprise our suppliers of changes in their approval status by promptly notifying a source, pursuant to FAR 9.207(b), upon its removal from an acquisition identification description (AID); and to actively facilitate approval of these sources (see 11.302-90(a)(1)-(3)).

(a) Roles of contracting officer and product specialist. The requiring Military Service provides the data to procure the correct item. The product specialist (PS) is responsible for maintaining the accuracy and currency of the technical/quality requirements and for ensuring that only approved sources are identified in the acquisition identification description (AID). (Detailed policy guidance for product specialists is provided in the DLA Technical Support Policy and Procedures Deskbook, which is maintained by the Technical and Quality Policy Division, J-74, and can be accessed electronically at https://today.dla.mil/J-3/J-334/ESTS-techsuppdeskbook.htm.) Contracting officers are responsible for performing all necessary actions for effective contracting. They must ensure compliance with laws, regulations, and procedures; safeguard Government interests; request and consider advice of appropriate specialists (audit, law, engineering, etc.); and exercise business judgment (see FAR 1.602-2). Contracting officers have a responsibility to ensure that the selected source has the intent and capability to provide the item in compliance with the terms of the contract, including the item description; and they have broad latitude to carry out their duties. However, the contracting officer is not authorized to determine what sources should be approved and cited in the AID. Contracting officers must follow the guidance at 11.302-90(c) to determine when pre-award referral to the PS is required to ensure that a prospective contractor is technically acceptable.

(1) Providing notification to sources removed from an AID.

(i) Whenever a PS removes a source from an AID, the PS will concurrently prepare a source notification letter, with no date or signature block, and forward it to –

(A) The contracting officer, if a purchase request exists; or

(B) The Competition Advocate (or other designated office, pursuant to 17.7501(b)(4)(iv) or (v)), if there is no purchase request.

(ii) Upon receiving the letter from the PS advising that a source was removed from an AID, the contracting officer or Competition Advocate/designee (see 11.302-90(a)(1)(i) and (iv)) shall promptly review the letter to ensure it adequately states the specific reason(s) the source was removed and identifies the action(s) required for the source to become an approved source for the subject item. If so, the contracting officer or Competition Advocate/designee shall ensure that the appropriate management-level signature block is added, and that the letter is promptly signed, dated and forwarded to the source that was removed from the AID. If the letter requires revision, the contracting officer or Competition Advocate/designee shall immediately return the letter to the PS, specifying the required revisions, and the PS will immediately revise the letter and return it.

(iii) If a Source Approval Request (SAR) package is required to obtain approval for a source that was removed from an AID, a quote/offer from that source shall be evaluated in accordance with the same procedures used for processing alternate offers, except that cost savings thresholds are waived when the removal was not contractor-caused.

(iv) In some instances, a purchase request will exist at the time an effort is initiated to approve a source that was removed from an AID, but the contracting officer may have to proceed with award while the source approval decision is still pending. In such cases, the responsibility for tracking the request for source approval (see 11.302-90(a)(2)(ii)) shall transfer from the contracting officer to the Competition Advocate/designee). The contracting officer shall forward a copy of the source notification letter to the Competition Advocate/designee and advise that the action is being transferred in accordance with 11.302-90(a)(1)(iv). The contracting officer shall also advise the PS to contact the Competition Advocate/designee in the future regarding the subject source approval request.

(2) Approval of a source that was removed from an AID.

(i) The PS will track all requests for approval of sources that were removed from an AID. Requests for approval of sources include SARs, actions that are forwarded to the cognizant ESA(s), and actions assigned to another technical authority (e.g., on-site).

(A) Upon receipt of a response from the ESA(s) or other technical authority, the PS will promptly prepare a letter, with no date or signature block, to provide the approval or disapproval decision to the source that submitted the request for approval, and forward the letter to the contracting officer or Competition Advocate/designee (see 11.302-90(a)(1)(i) and (iv)). For disapprovals, the contracting officer or Competition Advocate/designee shall promptly review the letter to ensure it adequately states the specific reason(s) the request was disapproved. If so, the contracting officer or Competition Advocate/designee shall ensure that the appropriate management-level signature block is added, and that the letter is promptly signed, dated and forwarded to the source that was removed from the AID. If the letter requires revision, the contracting officer or Competition Advocate/designee shall immediately return the letter to the PS, specifying the required revisions, and the PS will immediately revise the letter and return it.

(B) If the PS receives no response within the time frame agreed upon, the PS will promptly contact the ESA(s) or other technical authority and develop a good faith estimate of the revised response time. The PS will promptlyprepare a letter, with no date or signature block, to provide the revised response time to the source that submitted the request for approval, and forward the letter to the contracting officer or Competition Advocate/designee, who shall ensure that the appropriate management-level signature block is added, and that the letter is promptly signed, dated and forwarded to the source that was removed from the AID.

(ii) Having been advised that the PS is seeking approval of a source that was removed from an AID, the contracting officer or Competition Advocate/designee (see 11.302-90(a)(1)(i) and (iv)) shall track the status of the request. If the PS does not provide a response to the contracting officer or Competition Advocate/designee within 5-10 days after the time frame agreed upon between the PS and the ESA(s) or other technical authority, the contracting officer or Competition Advocate/designee shall promptly contact the PS to determine the revised response time. The PS will promptly prepare a letter, with no date or signature block, to provide the revised response time to the source that submitted the request for approval, and forward the letter to the contracting officer or Competition Advocate/designee, who shall ensure that the appropriate management-level signature block is added, and that the letter is promptly signed, dated and forwarded to the source that was removed from the AID.

(3) Special procedures for items designated as critical safety items (CSIs). When an item is identified as a CSI and the PS removes one or more sources from the AID, the PS will identify all open purchase requests and open contracts to the assigned contracting officers or contract administrators. Contracting officers shall amend solicitations to reflect the updated AID. If any open contract will result in delivery of an item made by, or under the direction of, a source that is no longer an approved source for that item, the contracting officer or contract administrator shall coordinate with the PS to see if it can be promptly determined that the ESA or other technical authority is willing to accept the material, or if any other action can be taken to preclude the need for a contractual change. If not, the contracting officer or contract administrator may be able to issue a change order in accordance with FAR Subpart 43.2. For example, if the contractor is a non-manufacturer and there is at least one additional approved source remaining, the contractor may be able to provide the product of the other source without changing the scope of the contract. If such an agreement cannot be made, the contracting officer or contract administrator must issue a stop-work order in accordance with FAR Subpart 42.13 and seek source approval from the ESA or other technical authority before authorizing continued production. If the stop-work order is lifted, the contractor can submit a request for an equitable adjustment for any additional costs incurred as a result of the stop-work order. If the contractor, or its source, is not approved as a source for the subject item by the ESA or other technical authority, the ESA or other technical authority may still advise that the material is acceptable, but ordinarily the ESA or other technical authority will advise that products made by, or under the direction of, that source will be unacceptable to satisfy requirements for the subject item in the future until source approval is obtained. If the contractor, or its source, is not approved by the ESA or other technical authority to continue production of the subject item under an open contract, the contracting officer or contract administrator must terminate the contract for convenience and negotiate a termination settlement with the contractor in accordance with FAR Subpart 49.1.

(b) Prior procurement history not an indication of current source approval. When a previous manufacturing source is listed in the prior procurement history, this does not mean that the source is currently an approved source. A manufacturing source is not an approved source unless it is currently identified in the acquisition identification description (AID). If an offer is received from a manufacturing source that received one or more awards in the past but is not currently cited in the AID, the contracting officer must refer that offer to the technical/quality specialist for approval prior to making an award. Procurement history cannot be relied on to indicate that a manufacturing source is currently approved. For example, the previous award to the prior manufacturing source may have been made in error; the prior manufacturing source may have been approved for an earlier revision of the item but may no longer be approved for the latest revision; or parts made by the previous manufacturing source may have been defective, and the approved source cited in the AID or the Military Service Engineering Support Activity (ESA) may have revoked its approved status.

(c) Pre-award approval/referral requirements. (i) Contracting officers must acquire the item cited in the AID (i.e., an exact product) from the source(s) cited in the AID (i.e., an approved source); unless an exception is authorized in agency policy, or pre-award approval has been obtained from the technical/quality specialist. DLA policy is outlined in the table below. The table specifies when the contracting officer may proceed with the current award; or when the contracting officer is required, prior to award, to refer the offer to the technical/quality specialist and the ESA, and/or obtain approval of the award at one level above the contracting officer. Even when not required, contracting officers are responsible for obtaining technical, legal, or other advice whenever needed; therefore, contracting officers always have the discretion to go to the technical/quality specialist, the Office of Counsel, or other appropriate experts. (See 11.302-91 for additional procedures that apply to NSNs identified as CSIs.)

TYPE OF OFFER | CRITICALITY OF ITEM | CONTRACTING OFFICER (CO) CAN AWARD? | REQUIRES REFERRAL TO TECH/QUAL.? | REQUIRES APPROVAL FROM ESA? | AWARD REQUIRES APPROVAL ONE LEVEL ABOVE CO?
Approved Source Cited in AID Offering "Exact Product" Cited in AID | Noncritical or CIC Blank | Yes | No | No | No
CAI | Yes | No | No | No
CSI | Yes | No | No | Yes (Note 1)
Dealer/Distrib. (Nonmanufacturer) Offering "Exact Product" | Noncritical or CIC Blank | Yes (Note 2) | No | No | No
CAI | Yes (Note 2) | No | No | No
CSI | Yes (Note 3) | Yes (Note 4) | No | Yes
Unapproved Manufacturing Source Offering "Exact Product" | Noncritical or CIC Blank | No (Note 5) | Yes | (Note 6) | No
CAI | No (Note 5) | Yes | Yes | No
CSI | No (Note 5) | Yes | Yes | Yes
Any Source Offering "Alternate Product" | Noncritical or CIC Blank | No | Yes | (Note 6) | No
CAI | No | Yes | Yes | No
CSI | No | Yes | Yes | Yes

Note 1 Does not apply to fully automated awards, if system only permits a fully automated award when an approved source cited in the AID is offering an exact product cited in the AID.

Note 2 Contracting officers must either obtain traceability documentation prior to award, or must require suppliers in accordance with DLAD 52.211-9014 to retain documentation and provide it for review at time of Government source inspection, if applicable (see 11.302-91(a)(11)) or during random or directed post-award audits.

Note 3 Contracting officers must obtain traceability documentation prior to award.

Note 4 Quality assurance specialist (QAS) must conduct pre-award review of traceability documentation on which quality assurance letter of instruction (QALI) will be based. Referral to QAS is mandatory after award to finalize QALI. (See 11.302-91(a)(11).)

Note 5 Contracting officers must obtain traceability documentation and refer offer to technical/quality specialist prior to award.

Note 6 Technical/quality specialists must follow J-334 Deskbook and local procedures to determine if ESA referral is required.

(ii) The table at 11.302(90)(c)(i) only applies to the items and types of offers shown. It does not apply to items being acquired under a fully competitive technical data package (Acquisition Method Suffix Code (AMSC) G); to offers of Government surplus material, which are addressed separately in the procedures at 11.302(b)(90)); or to other types of referrals to the technical/quality specialist, which are addressed in the J-334 Deskbook and local procedures (such as, for example, waiver/deviation requests or engineering change proposals).

11.302-91 Management of critical safety items (CSIs).

CSIs are a subset of a larger category of parts known as Critical Application Items (CAIs); CAIs are items whose failure could affect mission, performance, readiness, or safety. CSIs are parts whose failure potentially can cause loss of life, serious injury, loss of an aircraft, or significant damage to an aircraft or associated equipment. Due to the catastrophic consequences that can result if a CSI fails to conform to design data or quality requirements, DLA personnel must follow strict policy guidelines for managing and procuring these items. When the AID includes the statement, "This is a Critical Safety Item (CSI)," contracting officers must follow the guidance in the "Acquisition Requirement" which appears under the heading, "The Following Requirements Apply to Critical Safety Items" on the purchase request (PR) trailer. Technical/quality specialists must follow the "Technical Requirement" and "Quality Assurance Requirement" under the same heading and related guidance in the J-334 Deskbook.

(a) Guidance for acquisition personnel. Contracting officers must refer to the "Acquisition Requirement" on the PR trailer, which will be continuously maintained to reflect the most current requirements for CSIs. The following DLAD guidance is not intended to be all-inclusive; it highlights the most important elements of the "Acquisition Requirement" and clarifies some procedures unique to contracting. If there is a discrepancy between the DLAD guidance and the "Acquisition Requirement" on the PR trailer, the "Acquisition Requirement" will take precedence.

(1) Acquire CSIs only from source(s) cited in the AID; or from a dealer/distributor who is offering the exact product (CAGE and part number) cited in the AID and who has furnished acceptable traceability documentation prior to award (see 11.302-90(c)(i), Note 3). Any variation from this requirement must be referred to the technical/quality specialist for evaluation. (See additional guidance at 11.302-90(c) and 11.304-90. For offers of surplus material, also see 11.302(b)) Referral to the technical/quality specialist is required whenever a source not currently cited in the AID offers to manufacture an item for the Government; and for all offers of "alternate product."

(2) Review the Technical Guidance Information (TGI) field in the CTDF, where sources will be identified that have been removed from the AID pending revalidation by the ESA. Solicit these sources for the current buy. If, after evaluation of offers, one of these sources is in line for award but has not been added back into the AID, the contracting officer must refer the offer to the technical/quality specialist for review as an unapproved source.

(3) Origin inspection is required. Certificate of Conformance (COC) is not authorized, unless approved by the ESA.

(4) Refer all requests for waivers or deviations to the technical/quality specialist.

(5) Specifically withhold Materiel Review Board (MRB) authority (also see 11.304-90(c)).

(6) Refer all offers of Government surplus material that are under consideration to the technical/quality specialist for evaluation (see 11.302(b)(90)).

(7) Automated solicitations may be used to solicit CSIs, and automated evaluation may be used to select a potential awardee; however, a fully automated award cannot be made, unless the system is programmed to only permit a fully automated award to an approved source cited in the AID who is offering an exact product cited in the AID. Automated awards can only be made to sources that do not currently appear in the AID if the system is programmed to allow for manual evaluation of the documentation required in accordance with 52.211-9005 prior to award.

(8) For urgent requirements (IPG 1), generally allow 5 business days for a prospective awardee to provide documentation in accordance with 52.211-9005; generally allow 15 days for less urgent requirements (IPG 2 or 3; or buys for delivery into stock).

(9) Contract arrangements that authorize the contractor to select item sources, including, but not limited to, Prime Vendor (PV), Industrial Prime Vendor (IPV), and Virtual Prime Vendor (VPV), are not authorized for CSI items; unless contract terms will ensure that the contractor complies with agency policy requirements for CSIs, and prior approval is obtained from the DSC CSI focal point.

(10) Incorporate all quality requirements into the contract when specified (e.g., First Article Test, Production Lot Testing). Do not waive any quality requirement without referring the purchase request to the technical/quality specialist.

(11) When award is made, notify the quality assurance specialist (QAS), who will determine if a quality assurance letter of instruction (QALI) is required. If award was made to a dealer/distributor, a QALI is mandatory; the QAS must have conducted a pre-award review of traceability documentation in accordance with the approval/review requirements at 11.302-90(c)(i) and Note 4. Advise the QAS what the QALI for a dealer/distributor should include, as follows:

(i) All QALIs must include the requirement to examine inventory control records, to establish that items offeror proposes to furnish under current award are in offeror's stock.

(ii) Specifically identify any documentation that offeror stated was unobtainable prior to award; or where a "copy" of documentation was provided prior to award, and an "original" should be examined at time of source inspection (such as, for example, documentation of quotation from approved source; or documents on approved source's letterhead (e.g., invoice, packing slip, etc.)).

(12) When multiple approved sources are identified in the AID and a long-term contract is contemplated, consider using acquisition strategies that will help maintain more than one source, if otherwise appropriate; such as, for example, split awards or multiple awards. This will also minimize the need for referrals to the ESA for revalidation, which is required for CSIs whenever an alternate source has not received an award for over 3 years.

(13) Obtain approval at one level above the contracting officer prior to making award; except that fully automated awards do not require this approval if the system is programmed to only permit a fully automated award to be made to an approved source cited in the AID who is offering an exact product cited in the AID.

(14) After award to any source other than an approved source cited in the AID, document in the Contracting Guidance Information (CGI) field in the Contracting Technical Data File (CTDF) the contract/purchase order number and the basis for approval of award (e.g., letter from approved source identifying awardee as authorized distributor).

(15) Carefully evaluate any post-award requests received from contractors for modifications to change a part number or anything pertaining to the representation of "exact product" in the contractor's original quote. Use the appropriate DCRL Category Code when contractors misrepresent their status as it pertains to offers of "exact product;" and provide an explanation in the "Remarks" field, so buyers on future procurements will request additional information from the vendor upon receipt of a quote or offer. Include adequate information in the DCRL "Remarks" field about how the contractor has misrepresented itself, so the buyer will know to pursue the documentation requirement. Ensure that when vendors have mispresented themselves with regard to an offer of "exact product," they are excluded from receiving any fully automated awards without a prior manual review, consistent with the policy in 11.302(91)(a)(7). In most cases, such buys must be referred to the manual buyer.

(16) If a contractor identifies changes in its business arrangement with an approved source, in the item acquired, or in a manufacturing process/facility pursuant to 52.211-9006, notify the technical/quality specialist. Refer documentation to technical/quality specialist, if provided by the contractor. Request that the technical/quality specialist determine if acquisition is still authorized from the contractor; if the correct item is being acquired under the contract; or if the manufacturing source is still approved, as applicable. Take corrective action as needed (issue modification, terminate contract, cancel purchase order).

(b) Requirements for business unit/management personnel.

(1) Implement internal controls to ensure compliance with this policy.

(2) Participate in periodic reviews and audits.

11.304-90 Solicitation provision and contract clauses for critical safety items (CSIs).

(a) Insert the clause at 52.211-9005, Conditions for Evaluation and Acceptance of Offers for Critical Safety Items, in all solicitations and awards for critical safety items; unless a waiver or exemption applies (see 11.304-90(d)).

(b) Insert the clause at 52.211-9006, Changes in Contractor Status, Item Acquired, And/Or Manufacturing Process/Facility -- Critical Safety Items, in all solicitations and awards for critical safety items; unless a waiver or exemption applies (see 11.304-90(d)).

(c) Insert the clause at 52.211-9007, Withholding of Materiel Review Board (MRB) Authority -- Critical Safety Items, in all solicitations and awards for critical safety items; unless a waiver or exemption applies (see 11.304-90(d)).

(d) Waivers and exemptions to CSI policies and clauses.

(i) The DSCR Technical Oversight Office (TOO) is authorized to maintain and disseminate all information regarding exemptions/waivers from CSI policies and clauses. The TOO will maintain this information and provide electronic access on their Web site at http://www.dscr.dla.mil/vg/CriticalPartReview.htm.

(ii) Service basic ordering agreements (BOAs) may be used without issuing modifications to incorporate the DLA CSI clauses (DLAD 52.211-9005, 52.211-9006, and 52.211-9007).

11.304-91 Solicitation provisions and clause for Government surplus material.

(a)(1) When the clause at FAR 52.211-5 is used, the contracting officer shall insert the provision at 52.211-9003, Conditions for Evaluation of Offers of Government Surplus Material, and the clause at 52.211-9000, Government Surplus Material, in solicitations, including when the acquisition is conducted using FAR Part 12; unless offers of surplus material will not be considered pursuant to 11.304-91(b), in which case the contracting officer shall not insert the provision and clause in the solicitation.

(2) When a long-term contract (LTC) is contemplated, the contracting officer shall insert the provision at 52.211-9003 and the clause at 52.211-9000 in the solicitation. If an offer of surplus material is received in response to a solicitation for an LTC, the contracting officer shall consider whether the quantity of surplus material meets the requirements of the solicitation. If so, the contracting officer shall consider the offer to be responsive to the solicitation. If not, the contracting officer shall reject the offer as not conforming to the solicitation and shall forward a summary of the offer to the inventory manager. The inventory manager shall take appropriate action in the best interest of the Government, based on the inventory manager’s judgment; such as initiating a separate, fixed-quantity purchase request, if warranted by the agency’s supply position. After award of an LTC, the contractor has the discretion to propose the use of surplus material in contract performance, subject to contracting officer approval (see FAR 52.211-5). If the contractor proposes to use surplus material, the contracting officer shall provide a copy of the clause at 52.211-9000 for completion by the contractor at that time. The contractor is not excused from timely performance due to the time required to evaluate the surplus material.

(3) When acquiring Aviation Supply Chain items that have been identified as Life Support items, the contracting officer shall insert the clause at 52.211-9000 with its ALT I in solicitations.

(4) When an offeror of surplus material is the successful awardee, the contracting officer shall insert the clause at 52.211-9000 in the award.

(b) Insert the provision at 52.211-9009, Non-Acceptability of Government Surplus Material, in solicitations when offers of surplus material will not be considered (see 11.302(b)(92)(iii)).

11.304-92 Solicitation clause for retention of traceability documentation.

(a) Insert the clause at 52.211-9014, Contractor Retention of Traceability Documentation, in all solicitations and awards for supplies, including when acquisitions are conducted using FAR Part 12; except that, in the event of any inconsistency, the clauses prescribed at 11.304-90(a)-(c) take precedence for critical safety items.

(b) The Contracting Officer shall use the clauses at 52.211-9022 and 52.211-9023, in solicitations and awards for part-numbered items; including when acquisitions are conducted using FAR Part 12.

Insert the clause at 52.211-9014, Contractor Retention of Traceability Documentation, in solicitations and contracts for non-critical or critical application items.

The Contracting Officer shall use the clauses at 52.211-9022 and 52.211-9023 in solicitations and contracts for part-numbered items.

11.304-93 .Contract CLause

(a) Use 52.211-9024, Shelf-Life Items Manufacturing Restrictions DLAD (Feb 2008), when shelf-life requirements are specified in the POT. Use 52.211-9024 ALT I, Shelf-Life Items Manufacturing Restrictions for FSG 91, when acquiring DVD shipments for FSG 91 and shelf-life requirements are specified in the POT.

(b) Use 52.211-9025, Compliance with National Sanitation Foundation (NSF) Requirements, in Solicitations, Negotiated Contracts and Purchase Orders for purchase of items in FSC 41 and 73. Time of delivery shall reflect the additional time below added to the normal required delivery period when the offeror indicates that the item will be or currently is being tested for compliance with NSF standards.

(c) Use 52.211-9043, Medical Material Requiring Refrigeration, in solicitations and awards for medical items requiring special handling and/or refrigeration.

Insert the provision 52.211-9042, Additional Documentation Requirements for Source Approval Request – Critical Application Item and Critical Safety Item, in solicitations for critical application items or critical safety items when 52.217-9002 is used. Particularly note its use for FSCs 1560, 1670, and 1680.

(d) The clause at 52.211-9015, Preference for Recycled Toner and Cartridges, shall be

used in solicitations and awards for toner cartridges for laser printers, photocopiers,

facsimile machines, or micrographic printers unless, based on conditions listed in the

clause, it is determined remanufactured or recycled toner cartridges will not be

procured.

SUBPART 11.4 - DELIVERY OR PERFORMANCE SCHEDULES

11.401 General.

Absent locally coordinated operating procedures, contracting personnel will not change production leadtimes or customer required delivery dates without prior coordination with the inventory manager and industrial specialist.

11.401-90 Responsibilities.

(a) General.

(1) The Pre-Award or Post-Award AS shall use existing reports and tools to determine prioritization of workload and appropriate escalation to next higher level, consistent with customer need date and Attainment to Plan (ATP).

(2) Executing contract modifications to expedite delivery and any other contractually-binding decisions made by the AS are subject to contracting officer approval if the AS has no warrant. No contracting officer approval is required to respond to status requests or to make non-binding agreements with contractors, such as obtaining an informal agreement that the contractor will attempt to expedite delivery.

(3) Policies and processes in DIRECTOR, ACQUISITION MANAGEMENT (J-7) CROSS-PROCESS POLICY MEMORANDUMS 05-001, Creating and Maintaining Externally Viewed Item Notes, and 05-002, Expedite Policy and Processes, apply. See 42.1190 regarding contract acceleration/status requests.

(b) Pre-Award.

(1) Reports and tools. The “Open Purchase Request (PR) Report” lists all PRs received and includes the Priority Group for workload prioritization. The “PR Prioritization Report” provides lists of open and blocked PRs, summarized by Priority Groups, and includes PRs that exceed the award date. These reports are available on BSM On-Line Help at https://dolh.bsm.dla.mil (Procurement, Procurement Job Aids, Reports).

(2) Anticipated delays in award.

(i) The Pre-Award AS may become aware of an anticipated delay in award, such as when a vendor advises there will be a delay in providing a quote/offer. In such cases, the Pre-Award AS shall document the following information on the text tab of SAP Purchase Request (PR) in the Header Note text block:

(A) Date the information was entered in SAP PR;

(B) Reason the delay in award is anticipated;

(C) Approximate amount of time award is expected to be delayed;

(D) Status or resolution; and

(E) Name and phone number of Pre-Award AS.

(ii) DLA Direct items. Supply Planners use the information in the text tab of SAP PR in the Header Note text block to create external SAP Material Master Item Notes on when required, such as when a CAS asks for status or requests an expedite.

(iii) Customer Direct items. A CAS will contact the Pre-Award AS directly for status. The CAS will then annotate the Sales Order Item Notes with the results of the research or expedite request. (For Customer Direct items, external SAP Material Master Item Notes do not require updating.)

(c) Post-Award.

(1) Reports and tools. Delinquency reports are available for both legacy and BSM acquisitions (i.e., the SAMMS Contract Delinquency Report (USPF-38) and the BSM Post-Award Delinquency Report). The Post-Award Workload Prioritization Procurement Business Rule can be used as a guide when practical. Additional resources may be found at BSM On-Line Help at https://dolh.bsm.dla.mil (Procurement, Procurement Job Aids, Reports, and Procurement R2.2 Release Notes).

(2) Anticipated delays in delivery.

(i) The Post-Award AS may become aware of an anticipated delay in delivery, based on information from the contractor, the Post-Award Delinquency Report, or other sources. In such cases, the Post-Award AS shall document the following information on the SAP Purchase Order (PO) in the Delivery text block:

(A) Date the information was entered in SAP PO;

(B) Reason the delay in delivery is anticipated;

(C) Approximate delay anticipated;

(D) Status or resolution; and

(E) Name and phone number of Post-Award AS.

(ii) DLA Direct items. Supply Planners use the information in the SAP PO Delivery Text block to create external SAP Material Master Item Notes on DLA Direct items when required, such as when a CAS asks for status or requests an expedite.

(iii) Customer Direct items. A CAS will contact the Post-Award AS directly for status. The CAS will then annotate the Sales Order Item Notes with the results of the research or expedite request. (For Customer Direct items, external SAP Material Master Item Notes do not require updating.)

11.401-91 Obsolete components or materials.

Subject to contracting officer approval if the Pre-Award AS has no warrant, the Pre-Award AS shall insert the clause at DLAD 52.211-9012 in solicitations and contracts when there is potential for obsolete components or materials, either based on specific historical data, or when a firm requests this clause due to possible difficulties with suppliers. If the Pre-Award AS becomes aware of an anticipated delay in award, see 11.401-90(b)(2)(i). If the Post-Award AS becomes aware of an anticipated delay in delivery, see 11.401-90(c)(2)(i). See 11.401-92 regarding potential alternative sourcing strategies.

11.401-92 Potential alternative sourcing strategies.

To resolve order fulfillment delays, the CAS will research possible sources of support, in accordance with DIRECTOR, ACQUISITION MANAGEMENT (J-7) CROSS-PROCESS POLICY MEMORANDUM 05-002, Expedite Policy and Processes. If contacted by a Supply Planner or CAS, the Post-Award AS, in coordination with the Product Specialist and Industrial Specialist, as applicable, may recommend consideration of one of the potential alternative sourcing strategies identified below, if appropriate. These potential alternatives would be in addition to any other actions being considered in accordance with policies at 11.401-90, 43.103(a)(90)(1)(i), and 49.101(c).

(a) If any vendor was recently removed from the purchase text acquisition identification description, an effort will be underway to facilitate that vendor’s addition back into the purchase order text in accordance with 11.302-90(a)(1). If this is the case, determine if the projected time required for evaluation is less than the anticipated order fulfillment delay.

(b) Determine if NATO Logistics Stock Exchange (NLSE) MIPR process is appropriate for use. (See BSM On-Line Helps at https://dolh.bsm.dla.mil, Procurement, Procurement Job Aid, NLSE.)

11.401 (93) Insert the clause at DLAD 52.211-9068, Continuance of Performance During any State of Emergency (Republic of Korea) (DESC), in DESC solicitations and contracts when performance is in the Republic of Korea.

11.402 Factors to consider in establishing schedules

The Pre-Award AS, in coordination with Supply Planners and Product Specialists, shall ensure that delivery or performance schedules are realistic and meet Time-Phased Inventory Plan (TPIP)/customer requirements. When establishing a contract or delivery schedule, consideration shall be given to applicable factors in accordance with FAR The Pre-Award AS, in coordination with Supply Planners and Product Specialists, shall ensure that delivery or performance schedules are realistic and meet Time-Phased Inventory Plan (TPIP)/customer requirements. When establishing a contract or delivery schedule, consideration shall be given to applicable factors in accordance with FAR 11.402(a) which include urgency of need, industry standards, market conditions, and transportation time. Any contractually-binding decisions made by the Pre-Award AS are subject to contracting officer approval if the Pre-Award AS has no warrant (see 11.401-90(a)(2)). Contracting officers shall ensure that delivery or performance schedules are realistic and meet customer requirements. When establishing a contract or delivery schedule, consideration shall be given to applicable factors in accordance with FAR 11.402(a) which includes urgency of need, industry standards, market conditions, and transportation time. 11.402(a) which include urgency of need, industry standards, market conditions, and transportation time. Any contractually-binding decisions made by the Pre-Award AS are subject to contracting officer approval if the Pre-Award AS has no warrant (see 11.401-90(a)(2)).

(a)(90) When it is determined that a customer’s need date may require a shorter delivery period than initially projected, the Supply Planner and the Customer Account Specialist (CAS) will follow the policies and processes for expediting delivery in DIRECTOR, ACQUISITION MANAGEMENT (J-7) CROSS-PROCESS POLICY MEMORANDUM 05-002 dated June 13, 2005. This memo can be viewed on eWorkplace at https://dla1.eportal.dla.mil/irj/servlet/prt/portal/prtroot/com.sap.km.cm.navigation/ewpAgencyDocumentsPublic/HQ/J-3/J-33/Policies/Cross%20Process?StartUri=/. As part of the investigation and resolution process, the Supply Planner or the CAS may ask the Acquisition Specialist to attempt to expedite delivery. When this happens, follow the mandatory procedures in DLAD PGI 11.402(a)(90)

11.402-90 Time Definite Delivery (TDD) Standards

Contracting officers must ensure that planned Direct Vendor Delivery (DVD) contracts comply with TDD standards for requisition processing to the maximum extent practicable as promulgated in DoD Materiel Management Regulation DOD 4140.1-R, Appendix 8 (http://www.dtic.mil/whs/directives/corres/html/41401r.htm). When cost considerations for obtaining TDD timeframes prove not to be justifiable or are impractical, contracting officers should consider other alternatives such as: 1) obtain and use DVD support for only those lower requisition priorities for which TDD can be met and use stock support for high priority requisitions; 2) contract for stock only. These business decisions must be fully supported by an economic analysis, Business Case Analysis or Vendor Stock Retention model analysis, where applicable, in accordance with PROCLTR 03-01.

In certain cases, the inclusion of a “desired and required time of delivery” provision may be helpful in determining the costs as well as the vendors’ ability to deliver rapidly. Consideration must be given to other factors including, but not limited to, those in the FAR reference listed above, in conjunction with the VSRM when developing the required BCA. For example, there are suppliers that consistently deliver a high percentage of their contract line items rapidly; yet, delivery may exceed TDD standards. If the additional time results in reduced prices and improved supply availability and readiness, this may be a situation where DVD is appropriate. In such cases, the analysis and determination should be well documented.

11.402-91 Appropriate exclusions for applying TDD standards.

There are legitimate exceptions to the policy on TDD standards for DVD contracts. Contracting officers should recognize the following as examples of appropriate exclusions from TDD standards:

1) Planned DVD contracts for kits used by maintenance depots.

2) Planned DVD items for commercially available items (household/general purpose items only) where the vendor can support a contract delivery date not more than 3 days greater than the TDD Total Order-to-Receipt Time (TORT);

3) Planned DVD contracts for a specific customer requiring support that is less demanding than the TDD standards;

4) Planned DVD contracts for part numbered items (those with no NSN).

5) DVD contracts/orders for non-stocked items (Acquisition Advice Code (AAC) “J” which is not stocked, centrally procured non-stocked items). Although TDD guidelines do not apply to this type of support, expedited delivery is still a critical requirement for non-stocked high priority requisitions. DVD arrangements must recognize urgency of need, item criticality, and weapon system coding, if applicable. Both Administrative Lead Time and Procurement Lead Time must be minimized.

The above exclusions do not apply to support for items assigned AAC D (DOD Integrated Materiel-Manager (IMM) stocked and issued) and AAC Z (Insurance/Numeric Stockage Objective item). These items must meet appropriate TDD pipeline standards. DLA customers will expect support for planned DVDs as quickly as they are supported from stock. The TDD pipeline standards are DoD Components targets that shall be met or improved upon whenever physically and economically feasible. More stringent time standards may be adopted for individual pipeline segments controlled by DLA when subsequent savings in time and improved service can be achieved.

It is recognized that several Defense Supply Centers’ (DSC) order processing systems currently use Issue Priority Group (IPG) codes in assigning delivery dates - not category requisitions (categories 1-3) referenced in DoD 4140.1-R. We expect that this condition will be corrected through business system modernization efforts. Due to anticipated time and costs required to update current systems, DSCs are authorized to continue using IPG codes in assigning delivery dates until business system modernization changes are finalized.

11.402-92 Materiel Management review of DVD items

The Pre-Award AS should coordinate with the Product Specialist and ensure that Customer Direct items are assigned the appropriate Acquisition Advice Code (AAC “H”). Any contractually-binding decisions made by the Pre-Award AS are subject to contracting officer approval if the Pre-Award AS has no warrant (see 11.401-90(a)(2)). The inclusion of Manager Review Codes (MRCs) shall be minimized to only those that are required (unless specifically approved by the head of the applicable Business Unit/Division/Application Group) to ensure the delivery order flows uninterrupted through the automated system. The Supply Planner shall ensure that item notes are included for all NSNs assigned to a LTC having contract delivery time frames that exceed TDD standards or for those contracts that are exempted from Customer Direct TDD requirements

11.402-93 DVD shipments in the DOD organic distribution system

The policy of this agency is that DVD arrangements will fully support our asset visibility objectives and initiatives. DVD shipments must meet requirements of the Defense Transportation System (DTS) when those commercial shipments have to be diverted through DTS entry points. To support in transit visibility, including the customer’s ability to track and trace DVD shipments, DVD contracts shall comply with guidance provided in 52.211-9010. To simplify vendor compliance with this requirement, vendors shall be strongly encouraged to implement the Agency’s automated tool, the Distribution Planning and Management System (DPMS) on a voluntary basis. As DPMS matures, the Agency goal will be to implement DPMS across the board to all vendors.

11.402-94 Customer Direct post-award monitoring and correction actions.

As stated in FAR 42.1103, the contractor is responsible for timely contract performance. The Post-Award AS shall maintain surveillance of contractor performance as necessary to protect the interest of the Government. The Post-Award AS must aggressively monitor Customer Direct contractor performance and take appropriate and immediate action to correct contracts that are not complying with TDD standards. The Post-Award AS shall follow the policies at 11.401-90(c)(2)(i) to update delivery status. The Post-Award AS shall take appropriate contract administration actions in accordance with FAR 42.302 and 43.204, if contract delinquency occurs. Any contractually-binding decisions made by the Post-Award AS are subject to contracting officer approval if the Post-Award AS has no warrant (see 11.401-90(a)(2)). The Long Term Contract (LTC) database shall be used as a tool to monitor and obtain visibility of expiring and/or expired contract delivery dates (CDD). The DPMS may also be used to track and monitor contractor delivery performance. See 11.401-92 regarding potential alternative sourcing strategies.

11.404 Contract Clauses

11.404-90 Solicitation provision – Business Systems Modernization (BSM) delivery terms and evaluation.

Insert the provision at 52.211-9011, Business Systems Modernization (BSM) Delivery Terms and Evaluation, in all DLA BSM solicitations.

(b) Insert 52.211-9037, Time of Delivery – DVD, in solicitations/contracts for long term contracts with planned DVD support for Customer Direct deliveries. May also be used in planned DVD solicitations/contracts that include DLA depot locations. Used in conjunction with DLAD 52.211-9011.

11.404-91

Insert the clause at 52.211-9019 in accordance with 9.306(f)(2).

Use the clause at 52.211-9026, Delays in Shipment of Products Requiring USDA Laboratory Analysis, in Solicitations and awards for products requiring USDA laboratory analysis.

11.404 Contract Clauses

11.404-92

Insert the clause at 52.211-9032, Shipping and Routing, in solicitations and awards for Bulk Lubricating Oil: Engine, Grade OE/HDO 40, MIL-L-2104E.

11.404 (a) Supplies or Services

11.404 (a)(1)(90) 52.211-9051, Time of Delivery, shall be used in fixed quantity RFPs, solicitations, and awards. For urgent buys requiring an accelerated delivery schedule, also insert FAR 52.211-11, Liquidated Damages, as appropriate in accordance with FAR 11.501 and 11.503.

11.404 (a)(1)(91) 52.211-9020, Time of Delivery – Accelerated Delivery, may be used in solicitations and awards when accelerated delivery is permitted at no cost or obligation to the government. Prior approval for acceleration from the Contracting Officer or other government representative is not required.

When accelerated delivery is requested by the Government, delivery shall be included in the solicitation as an evaluation factor, allowing a preference for offers less than the REQUIRED DELIVERY SCHEDULE.

11.404 (a)(1)(92) 52.211-9049, Time of Delivery – Incremental Delivery, shall be used in solicitations and awards when incremental delivery is requested by the Government. Delivery shall be included in the solicitation as an evaluation factor.

11.404 (a)(1)(93)

The clause at 52.211-9054, Time of Delivery – Negotiated IQCs and Simplified Acquisitions for IDPOs , shall be used in negotiated IQ solicitations, including IDPOs using simplified procedures. Insert NSN(s), quantity that may be ordered any calendar month, and number of days, and any additional quantity that may be ordered per month and number of days.

11.404-93 Base Installation

Use 52.211-9038, Time of Delivery/Performance – Base Installation, in all acquisition that require installation services for FSC 34, Industrial Plant Equipment to be performed at one of the following DLA locations, Defense Supply Center Richmond, Defense Supply Center Columbus, or Defense Supply Center Philadelphia.

11.404-94

Use clause 52.211-9057, Ordering/Time of Performance (Indefinite Delivery/Time and Material/Labor Hour Contract), indefinite delivery T&M/Labor Hour solicitations and awards.

11.404-94 Time of Delivery – Ordering Office

Use clause 52.211-9069, Time of Delivery – Ordering Office, in solicitations for LTCs that do not contain First Article requirements.

11.404-96

Use provision 52.211-9059, Time of Delivery – Alternate Delivery Schedules, in IFBs for C&T, Medical, Subsistence, or C&E items except those for IDCs or partial small business set-asides, where accelerated delivery and liquidated damages are required.

11.404-97

Clause 52.211-9060, Time of Delivery, may be used in awards for the Land and Maritime supply chain regardless of what time of delivery clause was used in the solicitation to set forth a revised delivery schedule.

11.404-98

Use clause, 52.211-9061, Time of Delivery (Overlapping Orders), in LTC solicitations and contracts when maximum delivery/production rates may limit the suppliers delivery capacity.

11.404-99

Use clause, 52.211-9062, Delivery Requirements, in solicitation and awards for Clothing and Textile, Medical, and semi-perishable Subsistence (excluding Subsistence brand name resale items) items.

SUBPART 11.5 - LIQUIDATED DAMAGES

11.502 Policy.

(d) Recommendations concerning the remission of liquidated damages shall be transmitted to the General Counsel.

11.503 Contract Clauses

11.503 (a)(90)

Use 52.211-9040, Amount of Liquidated Damages, in solicitations and contracts for clothing and textiles, medical, or subsistence items when 52.211-11 is used and delivery is an evaluation factor in addition to price.

SUBPART 11.6 - PRIORITIES AND ALLOCATIONS

11.602 General.

(a)(90) Executive Order (E.O.) 12742 implements Section 468 of the Selective Service Act (SSA). It allows for placing orders for the prompt delivery of articles or materials in support of the Armed Forces. This E.O. provides that all regulations and delegations made under the Defense Production Act (DPA), which includes the Defense Priorities and Allocations System (DPAS) regulation, remain in effect. Therefore, whenever the DPA lapses, the DPAS will continue in effect under authority of the E.O. and the SSA as the basis for rating DoD contracts to insure preferential scheduling and priority treatment by contractors.

(a)(91) The Executive Director, Acquisition, Technical and Supply will re-delegate DPAS authority to Commanders of DLA field procuring activities.

(a)(92) Commanders of DSCs will:

(i) Issue written delegations assigning the DSC Primary officer and Secondary DPAS officers as necessary or as recommended by the Primary DPAS officer;

(ii) Re-delegate the authority to designate Secondary DPAS officers to the Primary DPAS officer when appropriate.

(c)(90) The rating authority continued in effect under E.O. 12742 also extends to food resources (operational rations) in support of troops in accordance with the Memorandum of Understanding between the Departments of Agriculture and Commerce and the determination made by the Under Secretary of Defense for Acquisition and Technology.

11.603 (f)

(1) Department of Commerce (DoC) Delegation 1 to 15 CFR 700 specifies that this rating authority may not be used to support procurement of end items that are commonly available in commercial markets for general consumption, do not require major modification when purchased for approved program use, and are readily available in sufficient quantity so as to cause no delay in meeting approved program requirements. This restriction applies only to end items and is not applicable to repair parts, spares and components which by their nature do not stand alone in their intended use but are incorporated into end items. On this basis, the DLA ICPs cannot rate peacetime buys of commercial end items, unless they are not available in a timely manner which might cause an adverse impact in meeting approved program requirements. The ICPs must ensure that the DPAS officer reviews contracts for end items to verify proper ratings are applied. End items with surge and sustainment requirements for may qualify for rating eligibility even though peacetime requirements don’t because of timely delivery requirements for emergencies or contingencies. When contracts have a combination of commercial and non-commercial end items on the contract, they need to specify which items are rated. A commercial item is defined in FAR 2.101.

(2) Under the DPAS regulation a person is not required to place a priority rating on an order for less than $50,000 or one half the FAR Simplified Acquisition Threshold, whichever is larger, provided that delivery can be obtained in a timely fashion without the use of the priority rating (15 CFR 700.17(f)). This does not preclude a person from rating an order under $50,000 if he chooses to do so to insure timely delivery. This threshold would also apply to the mandatory priority rating extension requirements for contractors in FAR 11.603(d)(2).

(3) Orders for eligible items placed against the various long term contracting vehicles and new business practice prime vendors/virtual prime vendors should be rated and contain a required delivery date. As a result, these orders will be considered a rated order as of the date received by the supplier, in accordance with 15 CFR 700.12(b). The basic contracting vehicle may have a rating on it, but because it does not have a specified delivery date, it is not technically considered a rated contract. It should contain a statement that orders placed against this contract will be considered rated orders. See the clause in 11.604.

11.603-90 Procedures for placement of contracts when normal solicitations fail.

(a) The following procedures, in consonance with the DPAS regulation (15 CFR 700), shall apply when industry fails to adequately respond to solicitations for supplies needed to support the Military Services as prescribed in FAR 11.603.

(1) Reserved.

(2) To be reasonably certain that the companies upon which rated orders are placed unilaterally may not legally reject the orders (see DPAS 15 CFR 700.13(b) and (c)) and to assure that the placement of a rated order is practicable, rated orders issued unilaterally shall comply with the following:

A rated order shall not be issued unilaterally to a company when a reasonable doubt exists as to its capability to produce an item. A plant survey should be made by a Defense Contract Management Agency (DCMA) field office to determine that the company has the production capability, the financial capability, and the facilities to produce the item. The refusal of a company to permit such a survey, however, shall not alone be the basis for issuing a rated order. The contracting office’s decision in such cases will be based on the best information obtainable.

(3) The rated order that is issued unilaterally results in a "forced" action which may generate complaints or objections from suppliers. Therefore, extreme caution is required to assure equitable distribution of the orders to selected individual firms. Within the limits prescribed in subparagraph (2) above, the quantity to be included in each rated order and the number of companies to be selected shall be determined in accordance with the following criteria:

(i) When a production line must be established to produce the specific item, the rated order quantity shall not be less than a minimum economical production run.

(ii) When the total contract requirement represents a minimum economical production run for only one (or a few) of the capable producers, the rated order(s) shall be issued to the company(ies) considered the most capable and on which the impact on production will be least adverse minimal.

(iii) When there are a large number of companies capable of producing the total required quantity, the most qualified companies shall be selected. The quantity placed with each company shall not exceed 20 percent of each company's total capability to produce a like or similar item during the production period, until the total quantity is covered. The 20 percent restriction may be exceeded when a company so desires. (Note: The 20 percent is applied against the company's total capability to produce the like or similar item, irrespective of whether the company has multiplant or single plant production facilities.)

(iv) When there are relatively few companies capable of producing the items, the total quantity shall be allocated among all qualified producers, regardless of the percentage of capacity utilized.

(v) Every effort shall be made in each case to spread the requirement in such a way as to minimize the overall impact on the affected industry.

(4) The price data for these rated orders issued unilaterally shall be developed using the latest published industry pricing data or the last award price, adjusted as necessary to reflect current market pricing conditions. Further adjustment of these prices may be necessary to meet a quality producer’s standard, or to provide for a differential for a job shop's cost as compared with mass production costs. It should be noted that when pricing rated orders, the applicable requirements of FAR and the DFARS pertaining to cost or pricing data shall be followed.

(5) Reserved.

(6) Requirements for contract review and approval by the Executive Directorate, Acquisition Management .

(i) The requirements of 1.690-6 for review and approval prior to award of certain type contracts are waived for contracts resulting from rated orders that are issued unilaterally. However, such contracts for which preaward review has been waived shall be submitted to HQ DLA for a postaward review when called for by J-73.

(ii) Letter contracts still require authorization by HQ DLA in accordance with 1.690-6(g).

(7) A copy of all unilateral rated orders issued unilaterally will be forwarded to HQ DLA, ATTN: J-74, at time of issue.

(8) There may be instances when suppliers refuse to accept unilateral rated orders issued unilaterally. In such situations, negotiations shall be conducted at the level of the chief of the contracting office to determine whether some accommodation can be reached. If the contracting office agrees that a contract requirement is inconsistent with the contractor's regularly established terms of sale but there is no authority to waive the requirement, the matter will be referred to HQ DLA, ATTN: J-339, for resolution. If, in the judgment of the contracting office, the DLA requirement is valid and no agreement was reached, consistent with the contractor's regularly established terms of sale, but the parties disagree on the terms and conditions of the unilateral rated order (including failure to agree on a reasonable price), the contractor's written refusal, citing reasons, together with a completed DoC Form BXA ITA-999, Request for Special Priorities Assistance, shall be forwarded through established priorities assistance channels to HQ DLA, ATTN: J-74, for action. It is emphasized that DoC will may not direct any company to accept a rated order when the company has proper grounds for refusing the order. Each DLA contracting office will assure that the actions and determinations described, including a physical plant survey (for exception see subparagraph (2) above) by a DCMA field office, have been accomplished prior to requesting HQ DLA sponsorship of a request for DoC special priorities assistance to the DoC.

11.604 Solicitation provision and contract clauses.

(90) Notice to Offerors. The clauses at 52.211-9002, Priority Rating, and 52-211-9004, Priority Rating for Various Long-term Contracts, shall be included as appropriate in all solicitations distributed to industry for contracting action and contracts, except for items excluded under 15 CFR 700.18(b) and by Delegation 1 to 15 CFR 700 for commercial end items.

(91) Use 52.211-9053, Expedited Handling Shipments, in all Simplified Acquisitions including those using Part 12 procedures and large purchase solicitations and contracts that provide for direct vendor deliveries.

SUBPART 11.7 - VARIATION IN QUANTITY

11.701 Supply contracts.

(a) DESC is authorized to deviate from the requirements at FAR 11.701(a) and (b) and the clause at FAR 52.211-16. They may express the permissible variation in quantity of supplies as a rail car, not a percentage.

11.701-90 Procedure for closing contracts with inconsequential amounts undelivered.

The contracting officer is authorized on a case-by-case basis to consider a contract completed when an inconsequential amount not falling within the variation in quantity clause remains undelivered or, in the case of brand name subsistence or less than carload lots (LCL) of perishable subsistence items, the undelivered amount is no longer required by the using activity, provided all of the following conditions exist:

(a) Provision for payment is on a unit price basis, and the contractor advises that no further deliveries will be made;

(b) Payment is made for the units actually received;

(c) The undelivered portion is inconsequential, or in the case of brand name subsistence or LCL perishable subsistence items, the undelivered amount is no longer required by the using activity, and the cost of executing a supplemental agreement (including, but not limited to, taking termination action) is excessive in relation to the benefits to the Government from such action; and

(d) The contracting officer includes in the file a memorandum stating that no rights of the Government are being waived by this procedure, and a termination for default is not warranted. The contracting officer shall execute and distribute an SF 30, Amendment of Solicitation/Modification of Contract, as an administrative change to the contract to deobligate funds. The change shall indicate that the above criteria have been met and the contract is considered complete, and shall reference the contractor's communication which advised that no further deliveries will be made.

11.703 Contract clause.

(a) Defense Energy Support Center (DESC) is authorized to use DESC clause 52.211-9F16, Variation in Quantity (DEC 1995) (DEVIATION), in lieu of FAR clause 52.211-16. Variation in Quantity, in fixed-price, indefinite-delivery type solicitations and contracts for coal. See 11.701(a).

(b) Delivery of Excess Quantities of $250 or Less. Unless there is a valid reason to the contrary, the clause set forth in FAR 52.211-17 shall be included in all contracts, purchase orders, and Blanket Purchase Agreements.

11.703 (c) The clause at 52.211-9021 should be used in all solicitations and awards for wire and cable, FSC 6145. Include FAR 52.211-16 when 52.211-9021 is used.

11.703-90

Use 52.211-9050, in solicitations, purchase orders, and negotiated contracts for aerial photographic film (FSC 6750).

SUBPART 11.90 – PRODUCT PHASE-OUT

11.9001 Notification of product phase-out.

Production phase-out of DLA-managed critical application items by the manufacturer could jeopardize the Government's ability to provide continued support for weapon systems or other vital programs. Therefore, the contractor shall be advised that, in the event that manufacturing phase-out or discontinuance of production of such items is contemplated, the contractor is required not only to publish the discontinuance in the Government-Industry Data Exchange Program (GIDEP), where feasible, but also to provide advance notice to the applicable Supply Center Diminishing Manufacturing Suppliers and Material Shortages (DMSMS) point of contact (POC), as well as to the DLA DMSMS Integrated Support Team (IST).

11.9001-90 Solicitation provision and contract clause.

Use 52.211-9052, Notification to Government of and Contemplated Production Phaseout, in solicitations and awards for items designated as having “critical application.”