# DLAD PART 6 – COMPETITION REQUIREMENTS

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

- 6.202 Establishing or maintaining alternative sources.

- 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.
- 6.302-7 Public interest.

- 6.303 Justifications.

- 6.303-2 Content.

- 6.304 Approval of the justification.

- 6.305-90 Availability of the justification.

- SUBPART 6.5 – COMPETITION ADVOCATES

- 6.501-90 Requirement.
- 6.502-90 Duties and responsibilities.

- 6.503 Annual reporting requirements.

PART 6 – COMPETITION REQUIREMENTS

(Revised December 19, 2013 through PROCLTR 2014-47)

TABLE OF CONTENTS

SUBPART 6.2 – FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

6.202 Establishing or maintaining alternative sources.

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.

6.303-2 Content.

6.304 Approval of the justification.

6.305-90 Availability of the justification.

SUBPART 6.5 – COMPETITION ADVOCATES

6.501-90 Requirement.

6.502-90 Duties and responsibilities.

6.503 Annual reporting requirements.

SUBPART 6.2 – FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

6.202 Establishing or maintaining alternative sources.

(b)(1) Contracting officers shall prepare proposed D&Fs to exclude sources pursuant to FAR 6.202(b)(1), coordinate them through the Chief of Contracting Office (CCO) and, for activities with their own Head of Contracting Activity (HCA), through the HCA, and forward them to the Acquisition Operations Division by staff summary sheet for approval and signature by the Director, DLA Acquisition.

SUBPART 6.3 – OTHER THAN FULL AND OPEN COMPETITION

6.302-2 Unusual and compelling urgency.

(b)(S-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)(S-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.

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

(90) 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.

6.302-7 Public interest.

(c) Limitations.

(1)(i) Requests for D&Fs under authority of 10 U.S.C. 2304(c)(7), as implemented by FAR 6.302-7, shall be coordinated through the Chief of Contracting Office (CCO) and Counsel and, for activities with their own Head of Contracting Activity (HCA), through the HCA, and forwarded to the Acquisition Operations Division (J72). The request shall include a detailed justification supporting the proposed D&F.

6.303 Justifications.

6.303-2 Content.

(a)(S-90)(i) When the J&A will include items coded AMSC A and/or H, the following shall be inserted:

(A) Items identified by AMSC A or H on long term contracts are subject to review for possible assignment of a different or permanent AMSC. These items shall be continually reviewed, not less than annually, in part to determine if technical data is available to allow for assignment of a more permanent AMSC. Any item determined to be competitively available before contract award will be removed from the acquisition. Any item determined to be competitively available after contract award may be deleted from the contract and competitively re-solicited.

(B) The results of the reviews and reclassification actions for AMSC A and H items will be reported by the contracting officer to the local competition advocate, and may be reported to DLA Competition Advocate in accordance with DLA Acquisition requirements.

(C) If the review of an item classified as AMSC H does not result in the assignment of a more permanent AMSC within the later of one year of approval of this justification or one year of the item’s placement on a contract covered by this justification, the contracting officer shall remove the item from the contract.

(ii) Add the following when the initial award under the J&A will not include all items covered by the J&A:

(A) To add other sole source parts covered by this justification to the initial award items identified in [insert section number], the review process described in an attachment to this justification must demonstrate that the parts are sole source to [insert name of contractor] at the time they are proposed for addition.

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

(i) 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.

(ii) 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.

(iii) 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.

(iv) The contracting officer shall consult with his/her 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)(S-90) Justifications for those contracting offices listed at 2.101 requiring approval by the Director, DLA Acquisition serving as the HCA for purposes of approval of the justification (including class justifications based on estimated total value of the class) shall be forwarded to DLA Acquisition Operations Division by staff summary sheet coordinated through the CCO and Counsel. The justification shall be forwarded sufficiently early as to allow for required reviews and approvals prior to the commencement of negotiations.

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 (d) below (with the exception of servicing 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)). Contracting activities and offices 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) HCAs, or CCOs when the Director, DLA Acquisition is the HCA, shall ensure J&As are appropriately posted to FedBizOpps within the mandated statutory timeframes (see FAR 6.305(a) and (b)). Procurement management reviews will include J&A postings as one of their subjects for oversight.

(c) Review prior to posting.

(1) The contracting officer and the servicing 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. Counsel review for exempt material may be done as part of the normal review process for a J&A.

(2) Disclosure of information in a posted J&A.

(i) General. J&As shall be carefully screened to redact information exempt from public disclosure under FOIA, including but not limited to proprietary information, classified information, trade secrets, and Independent Government Cost Estimates and other source selection information.

(ii) Consult the servicing Counsel for guidance on whether a legal basis exists for redacting logistical details that could provide strategic information to the public that requiring activities would not want known, market research details specific to a contractor’s capacity, references to specific sole source parts needed for weapons systems, and other information, the disclosure of which could be used, either alone or in combination with other publicly available information, to the detriment of U.S. interests.

(iii) Titles, names, and signatures. Current DLA policy is to disclose only the names of the contracting officer, approval/review chain officials, and the approving official. When posting the approved J&A, only the signature of the approving official needs to be included in the posted J&A, and signatures below the approving official should be redacted. Names and signatures of persons outside the approval/review chain, such as technical certifying personnel, should be redacted. Consult the servicing Counsel for assistance in this area.

(d) Reviewing posted J&As. HCAs, or CCOs when the Director, DLA Acquisition is 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.

(e) Agency web-site link requirement. The FAR 6.305(d)(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 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

6.501-90 Requirement.

(a) The Director, DLA Acquisition (J7) shall designate the Agency competition advocate.

(b) In accordance with delegated authority from the Director, DLA Acquisition, the HCAs 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 is the HCA will forward nomination recommendations to DLA Acquisition Operations Division signed by the CCO. 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.

6.502-90 Duties and responsibilities.

(a) Agency competition advocate.

(1) In addition to the duties and responsibilities outlined in FAR 6.502, the agency competition advocate shall perform the duties and responsibilities as follows:

(i) Review the annual competition goals submitted by activity competition advocates and establish DLA competition goals for the fiscal year no later than 30 days after the deadline established for receiving those goals from the activity competition advocates.

(ii) Analyze the annual reports submitted by activity competition advocates. Identify common concerns and impediments to competition and include these in the agency annual report to the SPE, along with recommended solutions, if applicable.

(iii) Prepare the agency annual report for submission to the SPE.

(iv) In the absence of the activity competition advocate, if there is no alternate activity competition advocate, the agency competition advocate shall serve as the alternate for an activity competition advocate when there is an urgent issue requiring participation by the activity competition advocate.

(b) Activity competition advocate.

(1) In addition to the duties and responsibilities outlined in FAR 6.502(a), the activity competition advocate shall perform the duties and responsibilities as follows:

(i) Act as advisor and have direct access to the HCA or, at DLA Strategic Materials, DLA Enterprise Support, DLA Document Services, and DLA Distribution, have direct access to the CCO, on competition matters and act as a focal point for promoting competition.

(ii) Challenge barriers to competition, including unnecessarily detailed specifications and unnecessarily restrictive statements of need.

(iii) Identify items or groups of items for which competition would provide the greatest benefits in terms of cost, schedule, and performance. Initiate efforts to develop competition for these items.

(iv) Recognize individuals who have made significant contributions to competition by establishing an award program or by recommending them for recognition in existing award programs.

(v) Promote market research efforts, including identifying manufacturers, attendance at conferences and workshops, web research, and contacting industrial, professional, and manufacturers associations for membership references.

(vi) Establish annual competition goals for each fiscal year and prepare an annual report for submission to the agency competition advocate. In establishing annual competition goals, the contracting office competition advocate shall consider various categories of congressionally-mandated socioeconomic programs such as small business, small disadvantaged business, service-disabled veteran owned small business, small business innovative research, and the establishment of minority business goals. The contracting office must use competitive procedures to the maximum extent possible, including when it utilizes commercial practices and implements prime vendor and long term contracting initiatives. Both the annual competition goals and the annual report shall be submitted jointly using the format detailed in 6.503.

6.503 Annual reporting requirements.

(a) The report shall be submitted to the agency competition advocate no later than 15 November of each year.

(b) Where more than one competition advocate is assigned for a contracting office, the manager of the competition advocacy program shall forward combined goals and the annual report which shall be broken out by the contracting offices, if appropriate.

(c) The annual report shall cover the previous fiscal year and shall be broken out by the contracting offices responsibilities, if appropriate. The report shall cover the following major topics:

Annual Advocacy Report for FYXX Defense Logistics Agency (DLA) In accordance with FAR 6.502(b)(2), ______________ submits the following report. 1. Competition rate achieved. Show the level of competition achieved against the approved goals. The information cited below will match the established Federal procurement data system next generation (FPDS-NG). a. FY XX competition goals (by activity) a. ____________% of total procurement actions b. ____________% of total dollars obligated b. FY XX competition rates achieved (by activity) c. ____________% of total procurement actions d. ____________% of total dollars obligated 2. Advocate’s activities. Provide a brief synopsis of procurements or activities where competition was instrumental in achieving substantial cost savings or other benefits. 3. New initiatives required. Describe plans for improving competition, such as identifying change in contracting techniques or other operational procedures which will enhance the competitive aspects of procurement. a. To increase the acquisition of commercial items b. To increase competition c. To ensure requirements are stated in terms of functions to be performed, performance required or essential physical characteristics 4. Any barriers to the acquisition of commercial items or competition that remain. If applicable, provide the reasons (conditions, actions, impediments) for not attaining these goals or mitigating actions/measures taken or planned to resolve the problems. 5. Other ways in which the agency has emphasized the acquisition of commercial items and competition in areas such as acquisition training and research. Describe other efforts or accomplishments for improving competition, such as identifying change in contracting techniques or other operational procedures which will enhance the competitive aspects of procurement. List workshops or conferences conducted or attended and tangible benefits derived from them. 6. Proposed FYXX competition goals for actions and dollars (by activity). The submission shall include the supporting rationale for establishing the goals. When projecting goals, previous fiscal year competition statistics, projected obligations, and performance statistics from FPDS-NG shall be considered. Include a discussion of any significant obstacles encountered and/or issues experienced in the previous fiscal year which are expected to continue into the current fiscal year. a. ____________% of total procurement actions b. ____________% of total dollars obligated c. Projected expenditure d. Supporting rationale for the proposed competition goals e. Plans for increasing competition on a fiscal year basis The point of contact is ___________, title, telephone number________ or email____________.