# DLAD PART 6 – COMPETITION REQUIREMENTS

- 6.003 Definitions.

- SUBPART 6.1 – FULL AND OPEN COMPETITION

- 6.101 Policy.

- SUBPART 6.2 – FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

- 6.202 Establishing or maintaining alternative sources.
- 6.203 Set-asides for small business.

- SUBPART 6.3 – OTHER THAN FULL AND OPEN COMPETITION

- 6.302-2 Unusual and compelling urgency.
- 6.302-3 Industrial mobilization; or engineering, developmental, or research capability; or expert services.
- 6.302-3-70(90) Solicitation provision and clause.
- 6.302-7 Public interest.

- 6.303 Justifications.

- 6.303-1 Requirements.
- 6.303-2 Content.

- 6.304 Approval of the justification.

- 6.305-90 Availability of the justification.

- SUBPART 6.5 – COMPETITION ADVOCATES

- 6.501 Requirement.
- 6.502 Duties and responsibilities.
- 6.503 Annual reporting requirements.

PART 6 – COMPETITION REQUIREMENTS

TABLE OF CONTENTS

6.003 Definitions.

SUBPART 6.1 – FULL AND OPEN COMPETITION

6.101 Policy.

SUBPART 6.2 – FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

6.202 Establishing or maintaining alternative sources.

6.203 Set-asides for small business.

SUBPART 6.3 – OTHER THAN FULL AND OPEN COMPETITION

6.302-2 Unusual and compelling urgency.

6.302-3 Industrial mobilization; engineering, developmental, or research capability; or expert services.

6.302-7 Public interest.

6.303 Justifications.

6.303-1 Requirements.

6.303-2 Content.

6.304 Approval of the justification.

6.305 Availability of the justification.

SUBPART 6.5 – COMPETITION ADVOCATES

6.501 Requirement.

6.502 Duties and responsibilities.

6.503 Annual reporting requirements.

6.003 Definitions.

"Procuring activity," as used in this Part and in FAR Part 6 and DFARS Part 206, means the contracting activities defined in DFARS 202.101 and the following:

DLA Distribution .

DLA Disposition Services .

DLA Strategic Materials .

Defense Media Activity.

DLA Document Service .

DLA Installation Support .

SUBPART 6.1 – FULL AND OPEN COMPETITION

6.101 Policy.

(a) An acquisition provides for full and open competition if:

(90) The solicitation contains or references a complete, unrestrictive technical data package.

(91) Such data can be used for a determination of responsiveness/technical acceptability.

(92) The solicitation and the circumstances of the solicitation contain no limiting restrictions other than those required by law or regulation; and

(93) The Government has taken all reasonable steps to promote full and open competition:

(i) Ensured that specifications are not unduly restrictive in that they reflect the Government's needs, and are, to the maximum degree possible, functional in nature.

(ii) Performed market surveys and/or market research, as appropriate.

(iii) Complied with FAR Subpart 5.2.

(iv) Otherwise taken all reasonable steps to inform potential suppliers of its requirement.

The number of offers expected or received against the solicitation is not relevant to the determination that an acquisition does or does not provide for full and open competition. For example, if all the above conditions are met, an acquisition for an item on a Qualified Products List is full and open competition regardless of the number of products qualified (see FAR 9.2).

SUBPART 6.2 – FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

6.202 Establishing or maintaining alternative sources.

(b)(1) Authority to sign determinations and findings (D&Fs) required by FAR 6.202(b)(1) has been delegated to the Director, DLA Acquisition (J7). Proposed D&Fs shall be forwarded to J7 for signature by the Director, DLA Acquisition (J7). Requests to sign proposed D&Fs shall be reviewed and approved by the Supply Chain HCA and forwarded by a letter of transmittal signed by the Commander/Director of the requesting component. The letter of transmittal shall include:

(i) The proposed D&F in the format specified in DFARS 206.202(b)(ii) and supporting documentation in accordance with DFARS 206.202(b)(i).

(ii) The acquisition plan (see FAR Subpart 7.1).

6.203 Set-asides for small business.

(b)(90) Notwithstanding the criteria for full and open competition in 6.101, when an acquisition (or portion thereof) is set-aside for small businesses in accordance with FAR Subpart 19.5, and complete, unrestrictive technical data is not available, no justification for other than full and open competition is required.

SUBPART 6.3 – OTHER THAN FULL AND OPEN COMPETITION

6.302-2 Unusual and compelling urgency.

(b)(90) Justifications and Approvals (J&A) for Issue Priority Group I (IPG I) requirements (i.e. Priority Designators 01, 02 and 03) citing Not Mission Capable Supply indicators (MILSTRIP position 62-64) of 999, N** or E** and/or Office of the Secretary of Defense/Joint Chiefs of Staff projects codes (MILSTRIP position 57-58) beginning with "9" shall cite both the priority and these additional indicators of urgency as the basis for limiting competition. No additional information is required to show harm to the Government. Contracting Officers shall accept the assignment of these indicators (which are assigned by the Commanding Officer of the requisitioning unit or his designated representative) as the certification of urgency and harm to the Government by technical or requirements' personnel required by FAR Subpart 6.303-2. The requirements certification, in such cases, resides with the customer. Such certifications do not have to be on the J&A.

(b)(91) Requirements citing a priority designator 01, 02 or 03 with no other indicator of urgency may also cite the priority alone as the basis for urgency. If the circumstances of such procurements seem questionable (for example, the item being procured seems routine in nature or items are repeatedly requisitioned with high priority designators), it may be appropriate to obtain additional information from the customer to further explain the urgency. Although DLAD 4410.1, Uniform Material Movement and Issue Priority System, states that priorities will not be challenged in DSC processing, the request for additional information to support the J&A does not constitute a challenge to the priority assigned. If misapplication of priority is suspected, these instances should be reported in accordance with DLAD 4410.1.

(c) Limitations.

(2) Whenever competition is limited pursuant to this authority, the historically lowest priced source(s) shall be solicited. An award may be made to other than the lowest priced offeror provided the premium paid is reasonable and consistent with the extent to which delivery is required to be expedited. Quoted prices and delivery terms for each source solicited shall be fully documented, along with rationale which clearly supports source selection. (See 13.106(c)(1).)

6.302-3 Industrial mobilization; or engineering, developmental, or research capability; or expert services.

(90) Contracts awarded under the authority of 10 U.S.C. 2304(c)(3), (see FAR 6.302-3(a)(2)(i) shall include a surge option clause (see DFARS 217.2008-70(b)) or some other type of surge readiness provision.

6.302-3-70(90) Solicitation provision and clause.

The DLA Energy Aerospace contracting officer shall include 52.206-9000, Domestic or Canadian Source Performance Restriction (DLA Energy) in all aerospace energy solicitations/contracts when competition has been restricted to domestic sources pursuant to FAR 6.302-3 and DFARS 252.206-7000 is included in the solicitation/contract. An approved Justification and Approval shall also be included in the contract file when utilizing this clause.

6.302-7 Public interest.

(c) Limitations.

(1)(i) Requests for making determinations and findings (D&Fs) under authority of 10 U.S.C. 2304(c)(7), as implemented by FAR 6.302-7, shall be reviewed and approved by the Supply Chain HCA and forwarded to J7by a letter of transmittal signed by the Commander/Director of the component, for submission through the USD(A&T), to the Secretary of Defense.

(3) Every request to exercise the authority of FAR 6.302-7(a) shall be accompanied by a justification (see FAR 6.303) supporting the D&F.

6.303 Justifications.

6.303-1 Requirements.

(b) DLA contracting offices shall establish approval levels for the certifications required by FAR 6.303-1(b).

(d) The agency point of contact with the Office of the United States Trade Representative is J71.

6.303-2 Content.

(a)(11) The justification shall include, when applicable, a description of (i) the action being taken to obtain a data package adequate to establish competitive acquisition of the item and (ii) market research efforts to eliminate impediments to subsequent acquisitions. The Contracting Officer shall follow the mandatory procedures at DLAD PGI 6.303-2(a)(11).

(a)(90) Justifications requiring approval by the Senior Procurement Executive, DLA, should be prepared using the following format which may be adapted and supplemented to suit the needs of the particular acquisition, provided each justification 1) includes the specified topic headings, 2) cites the associated statutory requirement of 10 U.S.C. 2304(f)(3)(A)-(F), and 3) sets forth the facts and rationale in a logical sequence. Under each heading, use as many paragraphs as needed to explain the justification. Avoid jargon and overly technical or esoteric language. Numbering of sections and paragraphs is recommended for ease of reference.

Title: “Justification for Other than Full and Open Competition for [item/service to be purchased] under authority of 10 U.S.C. 2304 [specific exception number].” 1. Summary/Introduction: State in a few sentences 1) the field activity/agency, 2) what is being bought, 3) the estimated value and contract duration, and 4) the statutory authority cited for other than full and open competition. (This introductory section should be concise, as these points will be developed in detail later in the document.) 2. Description of Agency’s Need (10 U.S.C. 2304(f)(3)(A)): Include a summary of the origin of the procurement, a description of the supplies/services needed, the specific need or use for the item/service, and any other general information needed to understand the context of the procurement. If this is a lengthy section, additional topic headings may be appropriate, such as “Background,” “Current Procurement Efforts,” etc. 3. Authority for Other than Full and Open Competition (10 U.S.C. 2304(f)(3)(B)): Cite the authority and provide the rationale. If a particular company’s unique qualifications are critical, discuss those here. This section should include all facts supporting the use of other than full and open competition. This section should also address why the full quantity to be contracted for needs to be purchased without using competitive procedures. 4. Price/Cost Considerations (10 U.S.C. 2304(f)(3)(C)): Discuss relevant pricing issues, including the basis for determining that the anticipated price/cost will be fair and reasonable. Also include here, or elsewhere as appropriate, length of contract, quantity, and other contract particulars bearing on the price/cost. 5. Market Research/Efforts to Obtain Competition (10 U.S.C. 2304(f)(3)(D)&(E): Discuss market research, synopsis, and other efforts made to publicize the requirement and generate competition. Also include a listing of sources that expressed, in writing, an interest in the procurement. (Market Research may be addressed separately, if appropriate.) 6. Actions Being Taken to Overcome Barriers to Competition (10 U.S.C. 2304(f)(3)(F)): Describe, for example, any efforts to identify and evaluate less restrictive methods of expressing the requirement. Include, when applicable, a description of the action being taken to obtain a data package adequate to acquire the item competitively in future acquisitions. Note: When the J&A will include items coded AMSC A and/or H, see mandatory details at DLAD PGI 6.303-2(a)(90)(6)(a). I hereby certify that the information contained in this justification is accurate and complete to the best of my knowledge and belief.
Date |  | Contracting Officer Signature
Over $85.5 million: Other signatures as appropriate:
Date |  | Chief Counsel signature
Date |  | Other Signature
I have reviewed and hereby recommend that this Justification be approved:
Date |  | DLA Competition Advocate Signature
Date |  | DLA Office of Counsel Signature
Approval:
Date |  | DLA Senior Procurement Executive Signature

(a)(91) Justifications and approvals (J&A's) for awards made under broad agency announcements that support industrial mobilization.

(1) J&A's for noncompetitive awards made in support of industrial mobilization must properly address the compelling reasons for limiting awards to a particular source or sources and the unique capabilities of the targeted source(s) to support the industrial base. FAR 6.302-3(a)(2) requires that the contracting officer demonstrate that other than full and open competition is necessary in order to "keep vital facilities or suppliers in business or make them available" in case of a national emergency or to achieve industrial mobilization. Generally, the J&A must contain sufficient information about the item or service and the supporting industrial sector to demonstrate clearly that the contracting officer's determination to include a particular source or sources in, and exclude others from, the supply base for that item or service is appropriate.

(2) The contracting officer shall address the following considerations in the J&A:

(a) the relationship between the agency's program objectives and the acquisition strategy employed;

(b) the nature of the item or service (e.g., complexity, criticality, unique features) and the supporting industrial sector (e.g., industry capacity, are sources domestic or foreign, small or large, planned producers, dependent on government business);

(c) the current supply environment (e.g., if the item is currently stocked in inventory, discuss why the agency cannot continue to buy this item in quantity and stock it; further, discuss why the agency must employ a different supply method, such as quick response or direct vendor delivery, in order to maintain defense readiness); and

(d) the unique capabilities of a particular source (or sources) to meet agency mobilization requirements, such as 24 hour delivery, surge capability, or dual-use technology.

(3) The J&A shall also include the following information:

(a) a description of how the specific item or service was selected.

(b) how the volume of requirements to be awarded was determined appropriate;

(c) volume and proposed disposition of any remaining requirements for the designated item or service;

(d) future plans for implementing successful strategies using full and open competition.

(4) The contracting officer shall consult with his/her Office of Counsel in the preparation of J&A's in support of industrial mobilization.

(b)(90) In addition to the examples provided in FAR 6.303-2(b), requirements personnel shall certify that:

(i) The purchase request covers only that quantity needed to satisfy an unusual and compelling urgency; and

(ii) For stocked items, the items are out of stock or existing stock is insufficient to satisfy the requirement, and, if possible, an explanation of why existing stocks are insufficient or the item is out of stock; for non-stocked items, a statement to that effect.

6.304 Approval of the justification.

(a)(3) Proposed contracts over $12.5 million but not exceeding $85.5 million require approval of the head of the contracting activity (HCA). For those contracting offices not designated as contracting activities listed at 2.101, the HCA is the Director, DLA Acquisition (J7).

(a)(3)(90) Justifications for those contracting offices listed at 2.101 requiring approval by the Director, DLA Acquisition (J7) serving as the head of the procuring activity for purposes of approval of the justification (including class justifications based on estimated total value of the class) shall be forwarded to J72 by a letter of transmittal signed by the Commander/Director of the activity requesting . The letter of transmittal shall be forwarded sufficiently early as to allow for Headquarters review and approvals prior to the commencement of negotiations. The letter of transmittal shall include:

(i) The proposed justification (see FAR 6.303).

(ii) The acquisition plan (see FAR Subpart 7.1).

(iii) Any other pertinent supporting facts or information bearing on a decision to approve the justification.

(a)(4) See FAR 6.304

(a)(4)(B)(2)(90) This authority has been delegated to the Director, DLA Acquisition (J7) by the Director, DLA.

(a)(4)(B)(2)(91) Justifications requiring approval by the Senior Procurement Executive (including class justifications based on estimated total value of the class) shall follow the procedures at 6.304(a)(3)(90) for submitting requests to HQ.

(a)(4)(B)(2)(92) The DLA competition advocate shall review and recommend approval/disapproval of justifications exceeding $75 million.

6.305-90 Availability of the justification.

(a) FAR 6.305 applies only to justifications required by FAR 6.303-1. Limited source justifications required by other FAR sections, such as FAR 8.405-6, 13.106(1)(b), 13.501, or 16.505(b)(2) are therefore not subject to the FAR 6.305 posting requirement. Contracting offices shall, however, follow the provisions of (c) and (d) below (with the exception of servicing Office of Counsel review, which is optional in these cases) concerning any limited or sole source justification required to be publicly posted by any FAR section (e.g., FAR 5.102(a)(6), 8.405-6(d)). Supply chains and contracting organizations shall post to FedBizOpps the approved justification, appropriately reviewed and redacted in accordance with (d) below. Attachments and supporting documentation will not be posted. Format instructions are contained in the February 13, 2009, Memorandum from the Director, Defense Procurement, “Public Disclosure of Justification and Approval (J&A) Documents for Noncompetitive Contracts”, http://www.acq.osd.mil/dpap/policy/policyvault/USA000865-09-DPAP.pdf.

(b) Supply chain HCAs, or CCOs when J7is the HCA, shall ensure J&As are appropriately posted to FedBizOpps within the mandated statutory timeframes (see FAR 6.305(a) and (b)). Local and headquarters level procurement management reviews will include J&A postings as one of their subjects for oversight.

(c) When drafting J&As, contracting offices should carefully consider whether to include information whose disclosure, either alone or in combination with other publicly-available information, could lead to compromise of classified information or sensitive activities. They should first consider whether the information can be omitted from the J&A without compromising its intended purpose. If the information can be omitted, then it should be. For example, the J&A might concern support for sensitive overseas special operations activities. If possible, it should be written in such a way that it satisfies legal and regulatory requirements while not disclosing the nature of the activities being supported. If the information is critical to the J&A, then it should be phrased in a general way so as not to disclose any more sensitive information than is absolutely necessary.

(d) Review prior to posting.

(1) The contracting officer and the servicing Office of Counsel shall review all J&As subject to FAR 6.305, regardless of dollar value, to ensure material exempt from disclosure under FAR 6.305(c) is redacted before posting the document to FedBizOpps. Office of Counsel review for exempt material may be done as part of the normal review process for a J&A.

(2) For further guidance and instructions on redacting information, see the DLAD PGI 6.305(c)(2).

(e) Reviewing posted J&As. Supply chain HCAs, or CCOs when J7is the HCA, shall periodically spot check J&As posted by their activities to ensure only appropriate content is visible, in accordance with FAR 6.305(c), the DPAP Memorandum of February 13, 2009, above, the Freedom of Information Act (5 U.S.C. 552), and the prohibitions against disclosure in FAR 24.202.

(f) Agency web-site link requirement. The FAR 6.305(a)(2) requirement for providing the J&A on the website of the agency is satisfied by DLA’s link at http://www.dla.mil/J7/adddocs.asp and http://www.dtc.dla.mil/dsbusiness/default.htm , which provide access to the posted J&As on FedBizOpps. Contracting activities and organizations may also provide a link to the DLA links or to FedBizOpps from their own web pages, however, they shall not duplicate the effort by posting the approved and redacted J&As on their own websites.

SUBPART 6.5 – COMPETITION ADVOCATES

6.501 Requirement.

(90)(a) The Director, DLA Acquisition (J7) shall designate the Agency Competition Advocate.

(b) In accordance with delegated authority from the Director, DLA Acquisition (J7), the Heads of Contracting Activities (HCA) shall appoint activity competition and an alternate activity competition advocates, as needed, for their respective procuring activities. Those activities for which the Director, DLA Acquisition (J7) is the HCA will forward nomination recommendations to J72 signed by the activity’s Commander or Director. FAR 6.501(b) and (c) shall be considered when appointing or nominating individuals to perform the duties and responsibilities outlined in FAR 6.502(a), and appointed or nominated individuals shall be Level III certified in contracting in accordance with the Defense Acquisition Workforce Improvement Act (DAWIA).

(c) Where more than one activity competition advocate is assigned for a procuring activity, the HCA shall designate one activity competition advocate to serve as the Manager of the activity’s competition advocacy program.

6.502 Duties and responsibilities.

(90) Agency Competition Advocate

(a) In addition to the duties and responsibilities outlined in FAR 6.502, the agency competition advocate shall perform the duties and responsibilities outlined at PGI 6.502(90)(a)(1)-(4).

(91) Activity Competition Advocate

(a) In addition to the duties and responsibilities outlined in FAR 6.502(a), the activity competition advocate shall perform the duties and responsibilities outlined at PGI 6.502(91)(a)(1)–(6).

6.503 Annual reporting requirements.

For details see mandatory PGI 6.503.