# DLAD PART 9 – CONTRACTOR QUALIFICATIONS

- SUBPART 9.1 – RESPONSIBLE PROSPECTIVE CONTRACTORS

- 9.104-1-90 General standards.
- 9.104-2 Special standards.

- 9.105 Procedures.

- 9.105-1 Obtaining information.
- 9.105-2 Determinations and documentation.
- 9.106-1 Conditions for preaward surveys (PAS).
- 9.106-2 Requests for pre-award surveys (PAS).
- 9.106-4 Reports.
- 9.106-90 DLA pre-award survey monitors.

- SUBPART 9.2 – QUALIFICATIONS REQUIREMENTS

- 9.202 Policy.

- 9.203-90 Qualified product lists (QPLs), qualified Manufacturers lists (QMLs), Qualified Bidders Lists (QBLs) and Qualified Testing Suppliers Lists (QTSLs).
- 9.206-2-90 Contract clause.

- 9.207 Changes in status regarding qualification requirements.

- 9.207-90 Solicitation provisions and contract clauses for DLA special supplies, equipment and other items.

- SUBPART 9.3 – FIRST ARTICLE TESTING AND APPROVAL

- 9.302 General

- 9.302-90 DLR First Article Requirements.

- 9.306 Solicitation requirements.
- 9.308 Contract clauses. .

- 9.308-1 Testing performed by the contractor.
- 9.308-2 Testing performed by the Government.
- 9.308-2(90) Pre-award sample(s) for medical materiel.

- 9.390 Compatibility testing.
- 9.391 Government fit verification testing.

- SUBPART 9.4 – DEBARMENT, SUSPENSION, AND INELIGIBILITY

- 9.404 System for Award Management Exclusions.

- 9.404-90 Sources for clothing/textile components.
- 9.404-91 Identification of sources for all components for clothing/textile items.

- 9.405 Effect of listing.

- 9.405-1 Continuation of current contracts.

- 9.406 Debarment.

- 9.406-3 Procedures.
- 9.406-90 Procedures for debarments based on poor performance.

- 9.407 Suspension.

- 9.407-3 Procedures.

PART 9 – CONTRACTOR QUALIFICATIONS

(Revised November 20, 2013, through PROCLTR 2014-39)

TABLE OF CONTENTS

SUBPART 9.1 – RESPONSIBLE PROSPECTIVE CONTRACTORS

9.104-1-90 General standards.

9.104-2 Special standards.

9.105 Procedures.

9.105-1 Obtaining information.

9.105-2 Determinations and documentation.

9.106-1 Conditions for pre-award surveys (PAS).

9.106-2 Requests for pre-award surveys.

9.106-4 Reports.

9.106-90 DLA pre-award survey monitors.

SUBPART 9.2 – QUALIFICATIONS REQUIREMENTS

9.202 Policy.

9.203-90 Qualified Product Lists (QPLs), Qualified Manufacturers Lists (QMLs), Qualified Bidders

Lists (QBLs), and Qualified Testing Suppliers Lists (QTSLs).

9.206-2-90 Contract clause.

9.207 Changes in status regarding qualification requirements.

9.207-90 Solicitation provisions and clauses for DLA special supplies, equipment and other items.

SUBPART 9.3 – FIRST ARTICLE TESTING AND APPROVAL

9.302 General

9.302-90 DLR First Article Requirements

9.306 Solicitation requirements.

9.308 Contract clauses.

9.308-1 Testing performed by the contractor.

9.308-2 Testing performed by the Government.

9.308-2(90) Pre-award sample(s) for medical materiel.

9.390 Compatibility testing.

9.391 Government fit verification testing.

SUBPART 9.4 – DEBARMENT, SUSPENSION, AND INELIGIBILITY

9.404 System for Award Management Exclusions.

9.404-90 Sources for clothing/textile components.

9.404-91 Identification of sources for all components for clothing/textile items.

9.405 Effect of listing.

9.405-1 Continuation of current contracts.

9.406 Debarment.

9.406-3 Procedures.

9.406-90 Procedures for debarments based on poor performance.

9.407 Suspension.

9.407-3 Procedures.

SUBPART 9.1 – RESPONSIBLE PROSPECTIVE CONTRACTORS

(Revised August 19, 2014 through PROCLTR 2014-73)

9.104-1-90 General standards.

(c)(1) Assuring that contracts are awarded to responsible prospective contractors necessitates the maintenance of contractor performance history and development of criteria for its use. Occasional quality deficiencies in contractor performance may be unavoidable, but if the defects are of a critical or repetitive nature and the contractor is not amenable to taking corrective action, such circumstances may constitute support for finding a prospective contractor nonresponsible for award of contracts. Results, both positive and negative, from applicable quality history records (e.g., Quality Evaluation Program (QEP), Supply Discrepancy Reports (SDRs)) should be included in the contracting officer's determination and documentation of contractor responsibility.

(g)(1) Standards for drugs. The Food and Drug Administration (FDA) has cognizance of all quality aspects of certain medical items (predominantly drugs) in accordance with the Memorandum of Understanding (MOU) between DoD and FDA. At the request of DLA Troop Support, FDA will review the capability of a supplier to produce drugs and biologics of an appropriate quality whenever acquisition by DLA Troop Support of such an item is pending. It is within the discretion of the contracting officer to rely upon FDA conclusions regarding the capability of such offerors to meet required quality standards. A determination by FDA of unsatisfactory quality based on regulatory action shall necessitate a mandatory rejection of the offer by the contracting officer.

(h) Solicitation provisions and contract clauses.

(1) Use clause 52.209-9014 for base support acquisitions involving installation access to the Defense Logistics Agency facility located in Richmond, Virginia.

9.104-2 Special standards.

(b)(90) Contract clause. Insert the clause at 52.209-9031in DLA Energy solicitation and contracts when the offeror is required to meet special standards of responsibility, prior to award, in addition to the general standards for meeting responsibility requirements. See FAR 9.104-2 for further guidance. This clause shall not to be used to create qualification requirements as stated in FAR 9.2. Other DLA contracting activities may use this clause as needed when similar conditions exist. The contracting officer shall insert a description of the requirement, i.e., letter, permit, license, authorization, proof of capability, in paragraph (a).

9.105 Procedures.

9.105-1 Obtaining information.

(90)(1) Whenever updates are made to SAM (i.e., when contractors that have been identified as debarred, suspended, proposed for debarment, or otherwise ineligible for award), DLA Information Operations (J6) shall update the Defense Contractor Review List (DCRL) and distribute an updated version to all DCRL Monitors not less than quarterly.

(2) Insert DLAD clause 52.209-9032 in all solicitations for overseas contingency operation support contracts in excess of $10 million per year. This provides authority for the contracting officer to request an offeror to provide total company ownership information prior to award of any overseas contingency operation support contract in excess of $10 million per year.

(91) When making determinations of responsibility, contract specialists shall—

(1) For an automated procurement, in the event the prospective awardee is listed in SAM the procurement will be referred for manual review.

(2) Not more than two days prior to award, review SAM to ensure the prospective contractor is not listed, and include documentation in the file.

(3) Review the DCRL and comply with DCRL Special Attention Treatment Codes (see 9.105-1(93)) in Enterprise Central Component (SAP-ECC) and Supplier Relationship Management (SAP SRM/EProcurement) (where appropriate); and

(4) Determine whether application of any of the following additional information is mandatory and/or appropriate:

(i) Contractor performance history (CPH). (See 9.105-1(92)(d))

(ii) Federal Awardee Performance and Integrity Information System (FAPIIS). (See FAR 9.104-6.)

(iii) Financial reports. Each procuring organization has the discretion to establish a subscription (or subscriptions) with the commercial source(s) of financial reports. Available sources include, but are not limited to, Dun and Bradstreet, Equifax, Infogroup, Experian, Moody’s, and Standard and Poors. Factors that should be considered when selecting the source(s) include, but are not limited to, the scope of information provided and cost effectiveness.

(iv) Quality history. When a detailed review of a contractor's past quality performance is desired and a pre-award survey (PAS) is not being contemplated, the contract specialist may request a quality history from the product specialist. If a PAS is being contemplated, the contract specialist shall request the quality portion of the PAS.

(92) Defense contractor review list (DCRL).

(1) Entering a contractor on the DCRL.

(i) Referrals from a contract, technical, and quality control specialist, or contracting officer, the DLA Fraud Counsel, the Defense Contract Management Agency (DCMA), or investigative personnel/agency to the DCRL Monitor that could merit a contractor’s addition to the DCRL include, but are not limited to the following:

(A) Delivery of defective products, suspected fraud, unauthorized product substitution, counterfeit material, unauthorized foreign items, initiation of investigation of the contractor, several Product Quality Discrepancy Reports (PQDRs), adverse Product Test Center results, failure to perform, late delivery, multiple cancellations, and/or other performance issues.

(B) The referral notification and the Treatment Codes should supply specific instructions for contract specialists to follow in the event of award.

(C) A DCRL Monitor considering listing a contractor on the DCRL will coordinate with all other DCRL Monitors before placing a contractor on the DCRL.

(2) Maintenance and dissemination.

(i) The DCRL Monitor is responsible for maintaining the DCRL for their specific contracting activity or office. The DCRL provides information to the acquisition workforce that has been collected related to a contractor’s performance. A contractor listed on the DCRL has been referred to the DCRL Monitor for investigation, and the DCRL Monitor has found sufficient evidence to warrant implementation of a control action (listing Special Attention Reason and Treatment Codes with applicable comments) in the DCRL.

(ii) The DCRL is accessible through DPACS “Vendor” icon, EProcurement “Vendor Information” icon, or by viewing the “DCRL” Field in DPACS or Eprocurement (where appropriate). The DCRL field identifies contractors by CAGE Code that are on the DCRL.

(iii) The DCRL is “for official use only.” Information contained in the DCRL shall be protected from improper disclosure.

(3) Effect of the listing.

(i) Contract specialists shall comply with DCRL Special Attention Treatment Codes, both “required” and “recommended.” Contract specialists shall not make award decisions inconsistent with DCRL Treatment Code requirements unless the DCRL Monitor is consulted and the rationale is fully documented in the contract file.

(ii) The DCRL includes contractors that are undergoing close scrutiny by any of the contracting activities or offices. The DCRL is enterprise-wide, with Special Attention Reason and Treatment Codes from any of the three contracting activities (i.e., DLA Aviation, DLA Land and Maritime, or DLA Troop Support).

(iii) The DCRL includes contractors that are identified in SAM as debarred, suspended, proposed for debarment, or otherwise ineligible for award. In the event of an inconsistency, SAM data take precedence over DCRL data.

(iv) Contractors on the DCRL shall be considered for solicitation (except when the Special Attention Reason Code is “A” (see 9.105(93)(b)(1)) and/or the Special Attention Treatment Code is “08” (see 9.105(92)(b)(2)).

(v) Information on the DCRL may or may not be sufficient to determine a contractor nonresponsible.

(4) Contractor performance history (CPH). When the DCRL Special Attention Treatment Code description states “review contractor performance history,” request a CPH, including specific actions recommended for the current procurement.

(5) Reviewing/updating information on DCRL.

(i) Contract specialists shall contact the DCRL Monitor if they become aware of circumstances that may warrant changes to DCRL information.

(ii) Contractors shall be removed from the DCRL when the DCRL Review Board determines—

(A) The conditions that warranted their inclusion on the DCRL no longer exist or have substantially improved; and/or

(B) The DCRL Monitor determines that information provided by acquisition personnel is not sufficient to justify retention of the contractor on the DCRL and there is no longer a need to list the contractor on the DCRL.

(6) The Quarterly DCRL Review Board is responsible for reviewing actions of the DCRL Monitors and ensuring the contractor listing is accurate and up to date.

(i) The Board should meet quarterly.

(ii) Conduct of the DCRL Review Board –

(A) DLA Acquisition Programs (J-74) shall host the board and act as the meeting chair.

(B) All DCRL Monitors, and the Land and Maritime, Aviation, and Troop Support Fraud Counsel shall participate as Review Board members.

(iii) Results of the DCRL Review Board –

(A) Review the list of the current authorized DCRL contractor entries.

(B) Resolve any concerns or questions pertaining to the DCRL purpose and processes for entry or removal of a contractor from the DCRL.

(C) Minutes from the meeting published and provided to DLA Acquisition (J7) and the HCAs not later than ten business days after the DCRL Review Board meeting.

(iv) Information in the DCRL consists of Reason/Treatment codes, the date the contractor was placed on the DCRL, and a brief recommendation/instructions narrative.

(93) The DCRL Special Attention Reason Codes and Treatment Codes.

(1) Recommendations/instructions are cited for each supplier/CAGE code listed and are to provide visibility of known/potential areas of concern and actions that shall be taken to address such issues. When a PAS results in a negative DCRL recommendation for a small business, then a Certificate of Competency is required. The only instances of “do not award” involve cases of debarment, suspension, and proposed debarment except as otherwise directed by the Fraud Monitor or Business Integrity (Fraud) Counsel.

(2) Special Attention Reason codes.

(i) For DCRL Special Attention Reason Code A, the EProcurement “Debarment Status” field will be coded as: “D” for Debarment, a “P” for proposed debarment/suspension, or “S” for suspended.

DCRL Special Attention Reason Codes | Description | Help Text
A | Suspended or Debarred | Debarred, Suspended or Otherwise Ineligible. This category includes firms or individuals that are ineligible for federal procurements due to a suspension, proposal for debarment or debarment pursuant to FAR 9.4.
B | Recommended for Debarment | Recommended For Debarment or Suspension. This category includes contractors that have been recommended for debarment or suspension. Although these contractors are not ineligible for award, special procedures are required.
C | Responsibility Matters | Certification Regarding Responsibility Matters. This category includes contractors that have certified in accordance with FAR 52.209-5 that they have had a criminal conviction or civil judgment for fraud in the past three years or are currently indicted or otherwise criminally or civilly charged with fraud.
D | Termination for Default | Termination for Default. Contractors in this category have been terminated for default within the previous twelve months.
E | Financial Difficulties | Financial Difficulties (Including Chapter 11 Bankruptcy). Contractors are included in this category when information is received from DCMA or other sources that indicates the contractor is having financial difficulties. Such difficulties include contractor indebtedness that may jeopardize timely completion of the contract or contractor application for reorganization under bankruptcy laws (Chapter 11). Information may include formal bankruptcy notifications, or information informally obtained from credible sources.
F | Chapter 7 Bankruptcy | Business Closings (Including Chapter 7 Bankruptcy). This category includes contractors and individuals who have ceased business operations, are in the process of liquidating under bankruptcy laws (Chapter 7), or are otherwise going out of business.
G | Negative Pre-award Survey | Negative Pre-award Survey. Contractors are included in this category when a pre-award survey (PAS) that recommends no award has been received within the last twelve months
H | DCMA Imposed Corrective Action | DCMA Has Imposed Corrective Action. Contractors are included in this category when DCMA has found deficiencies in the contractors' quality system and has imposed a Corrective Action (CAR) Level III or IV Review
I | In DCMA Delivery Schedule Manager | DCMA Delivery Schedule Manager. DCMA has relevant information concerning contractors in this category.
J | Delinquent Performance | Delinquent Performance. This category includes contractors that have exhibited a pattern of delinquencies.
K | “Buy-Ins” or “Bid Shopping” | "Buy-ins" and "Bid Shopping." This category includes contractors that have had excessive cancellations, price increases and requests for modification after award. These practices indicate a "buy-in", "bid shopping", or other unacceptable bidding practices. This code applies to contractors that: (1) "Bid shop after award" that result in frequent inability to furnish supplies in accordance with the quotation that led to the award. (2) Submit frequent requests for deviations or waivers, clarification, and substitution of part numbers, most of which lacks substance but prevents compliance with the original delivery date. (3) Frequently return purchase orders for price increase. (4) Frequently notify the contracting activity that it will not perform under purchase orders just prior to due date in an apparent effort to reduce its delinquency rate. (5) Frequently fail to accept bilateral or perform unilateral purchase orders.
L | Pricing Discrepancies | Pricing Discrepancies (Excessive prices). Contractors are in this category when information indicates prices may not be fair and reasonable.
M | Fast Pay Discrepancies | Fast Pay Discrepancies/Abuse Contractors are included in this category when there is evidence that a contractor is violating or has violated the Fast Pay procedure (e.g., contractor has invoiced the Government without shipping the supplies).
N | Potentially Defective Material | Potentially Defective Material. Any DoD component has issued notifications regarding potentially defective material supplied by contracts in this category.
O | Counterfeit Material and Unauthorized Substitution | Counterfeit Material and Unauthorized Product Substitution. Contractors in this category are under surveillance by the Counterfeit Material/Unauthorized Product Substitution (CM/UPS) Team.
P | Nonconforming Supplies | Nonconforming Supplies. This category includes contractors for which evidence has been provided that a contractor has supplied nonconforming material, has supplied surplus material without quoting surplus material, has supplied foreign material without identifying country of origin, or has other questionable quality practices.
Q | Failure to Provide Approved Part | Failure to Provide Approved Part. This category includes contractors that have a pattern of supplying unapproved parts or making an unauthorized substitution for CAGE code/part numbered items.
R | Miscellaneous | Miscellaneous (Other Information). This category serves as an informational category providing contracting personnel with current status of administrative changes, business closings, transfer of ownership, change of location, change of CAGE code, multiple contractors at the same location or any other information that may assist in the decision process. See the "Remarks" section of the DCRL for instructions.
S | Sensitive Information | Sensitive Information. Specific instructions apply to contractors listed in this category. These instructions are not necessarily related to responsibility and the reason for placement in this category shall not be stated in the DCRL due to sensitivity. The "Remarks" section of the DCRL may contain a point of contact for information regarding these contractors. Sensitive information regarding these contractors shall not be disclosed to unauthorized persons.
T | Delinquent on Delivery Reduction | Substantially Delinquent on Delivery Reduction Incentive/Delivery Evaluation Factor Awards.
U | Work Stoppage | Work Stoppage.
V | Suspected Fraud or Collusion | Suspected Fraud or Collusion/Deceptive Business Practices.
W | Combined CAGE Codes | Combined CAGE Codes. Performance history for two or more CAGE codes have been combined for PPIRS purposes.
X | Contractor Report No Receipt of PO | Contractor Reported for Non-Receipt of Purchase Order.
Y | Affiliated Contractor | Contractor is affiliated with one or more other contractors. More than one contractor within an affiliation is participating in the same bid.

(ii) Special Attention Treatment codes.

DCRL Special Attention Treatment Codes | Description | Help Text
01 | Reserved | Reserved
02 | Evidence of AID MFR Part Number | For Part Numbered items, get evidence item was acquired from Manufacturer (MFR) cited in the Acquisition Item Description (AID)
03 | Traceability requirements | For FSGs/FSCs/NSNs requiring additional risk mitigation and the offeror is not identified as an approved source, require the offeror to submit traceability documentation.
04 | Withhold Fast Pay Recommended | Withholding of Fast Pay recommended
05 | Recom PAS > SAT/ Verbal < SAT | Recommend Pre-award Surveys for large buys/verbal pre-award surveys for simplified buys
06 | Fraud Monitor Coordination Required | Forward any proposed awards through Fraud Monitor
07 | Source Inspection Recommended | Source Inspection recommended (use of source inspection evaluation factor authorized after formal notification to contractor)
08 | Do not solicit or award | Do not solicit or award
09 | Review Contractor Performance History | Review Contractor Performance History (CPH)
10 | Report Suspect Material to Fraud Monitor | Report suspected material problems to Business Integrity (Fraud) Counsel
11 | Coordinate with DCMA | Coordinate with DCMA
12 | Corrective Action Report Level IV approval required | CAR Level IV, approval required for award
13 | Bilateral Award Email to Fraud Monitor | Bilateral Award – email contractor’s name and CAGE, contract/purchase order no., and NSN to Fraud Monitor
14 | Coordinate Mods with Fraud Monitor | Post award – Coordinate all administrative actions (modifications) with Fraud Monitor or Fraud Counsel
15 | Deter Resp/Nonresp required | Prepare formal determination of responsibility/nonresponsibility
16 | CAGE Combined for PPIRS Info | This CAGE Code has been combined with other CAGE codes for PPIRS purposes (For Informational Purposes Only)
17 | Coordinate Cost and Price Office | Coordinate with Cost and Price Office
18 | Report to Fraud Counsel | Report to Business Integrity (Fraud) Counsel
19 | Coordinate with Office of Counsel | Coordinate with Office of Counsel
20 | Refer to DCRL Narrative Detail | Refer to DCRL Narrative for details
21 | Product Testing Requirements | For FSGs/FSCs/NSNs requiring additional risk mitigation and the offeror is not identified as an approved source or if the quality of the product is questionable, test the offered product per listed requirements.
22 | Recommend no DRI/DEF awards | Recommend no delivery reduction Incentive/Delivery Evaluation Factor Awards
23 | Coordinate indust prep monitor | Coordinate with industrial preparedness monitor
24 | Quality Review Required | Product specialist shall validate the product quality record
25 | Reserved | Reserved
26 | Recommend price reasonableness | Recommend documentation of price reasonableness
27 | Suspend automated awards | Suspend from automated systems (case by case basis)

9.105-2 Determinations and documentation.

(a) Determinations.

(1) If it is determined that award will be made to a contractor listed on the DCRL that has a questionable quality history but is determined responsible in accordance with FAR 9.104 and 9.105, the contract specialist shall—

(i) Document the contract file;

(ii) Revise inspection and acceptance (I&A) terms to specify that I&A shall take place at source; and

(iii) Forward a referral to the product specialist requesting a quality assurance letter of instruction (QALI). The product specialist shall submit the QALI to the activity responsible for Government quality assurance.

(b) Support documentation.

(2)(i)(S-90)(A) Prior to executing a non-responsibility determination meeting the conditions of FAR 9.105-2(b)(2)(i), the contracting officer shall submit an undated/unsigned draft determination with relevant supporting documents to the Office of Counsel for review. After receipt of written confirmation that Counsel has reviewed the determination, the contracting officer shall execute the determination

(B) For simplified acquisitions, an annotation on Form 395, Significant Events, in the Contract File is generally sufficient to document the contract specialist’s actions.

(C) Distinguishing responsibility determination from past performance evaluation factor. Contract specialists shall not make a determination of responsibility based solely on past performance information that applies to evaluation of the contractor’s offer (e.g., PPIRS score). A contractor may have favorable PPIRS scores but could be included on the DCRL for reasons that will preclude a determination of responsibility.

(D) Data shall be input into FAPIIS as follows:

(1) Each contracting activity or office shall identify a POC responsible for entering non-responsibility determinations into FAPIIS.

(2) Once the contracting officer or contract specialist has coordinated with the Office of Counsel on the determination, they shall notify their FAPIIS POC that they have a non-responsibility determination that is required to be reported in FAPIIS. The contracting officer or contract specialist shall provide the following information to their FAPIIS POC:

Action date (date the determination was signed by the contracting officer) Solicitation number NAICS code: Product/service code Contractor’s DUNS number Contractor’s CAGE code Contractor’s name Contractor’s address Contracting officer’s DODAAC Contracting officer’s name, phone number, and email address Copy of the final determination (Note: Attachments must be properly marked; e.g. “For Official Use Only/Source Selection Sensitive – FAR 2.101 and 3.104) Written confirmation that the determination was reviewed by Office of Counsel (no privileged information should be included in the documentation provided to the FAPIIS POC).

(3) FAPIIS POCs are responsible for entering the record in FAPIIS within three working days from the action date. FAPIIS POCs shall notify the contracting officer when the record has been submitted. The contracting officer shall document the contract file to show that the non-responsibility determination was reported to FAPIIS.

9.106-1 Conditions for preaward surveys (PAS).

(a)(S-90)(1) A Formal PAS is a thorough evaluation of the prospective contractor's capability, experience, and performance history, which can be either an on-site (preferred) or desk survey. An Informal PAS is utilized when information is readily available and does not require a more in-depth evaluation. The following list identifies some of the situations where a survey is strongly recommended on a prospective contractor (manufacturer or non-manufacturer); contracting activities or offices may also request a survey in other situations when they deem it appropriate:

(i) Has been identified in SAM on the list of parties excluded from federal procurement programs within the past 3 years (or other determined time period);

(ii) Is (to the extent determinable from local records) a first-time Government contractor, or has had a performance break from Government business of 3 or more years' duration (or other determined time period);

(iii) Is undergoing or has undergone reorganization under bankruptcy laws within the past 3 years (or other determined time period);

(iv) Has been terminated within the past 3 years (or other determined time period) for default;

(v) Has negative quality records (e.g., PQDRs, SDRs.) in the Quality Evaluation Program (QEP) or is otherwise known to the contracting officer to have a poor or marginal performance history;

(vi) Has, within the past year (or other determined time period), received a negative PAS for any item within the same Federal Supply Class (FSC), or for the same type of service, as the item or service being purchased (found under DCMA Pre-award Survey System (PASS) eTOOLS);

(vii) Has failed to liquidate indebtedness to DLA (the extent of the indebtedness that would normally dictate a PAS shall be determined locally);

(viii) Is a transferee in interest of a former Government contractor; or

(ix) For any other reason that indicates that the contracting officer will need additional information to make a responsibility determination.

(2) To request a pre-award survey (PAS):

(i) If a formal PAS is requested for a simplified acquisition, the request shall be justified in writing.

(A) Before requesting a formal PAS, the contract specialist shall to the product specialist for a recommendation as to whether the quality portion of the PAS is required. The response from the product specialist can be used to determine whether to include or exclude the quality portion of the PAS. Product Specialist responses may include:

(1) Quality history indicates quality portion of the PAS is not required.

(2) No quality history exists. Recommend quality portion of PAS be conducted.

(3) Unique characteristics or manufacturing process require quality portion be done.

(4) The product specialist desires to participate in the PAS. (Supporting documentation will be required from the product specialist’s organization.)

9.106-2 Requests for pre-award surveys (PAS).

(90)(a) Evaluation of a contractor as a planned producer will not affect the outcome of the PAS for other than industrial preparedness purposes. Any prospective contractor receiving a negative PAS for production or quality assurance capability with regard to an existing/potential Industrial Preparedness Planning List (IPPL) item should neither be solicited nor enrolled as a planned producer.

(b) For items assigned to the U.S. Department of Agriculture, the U.S. Department of Commerce, and/or the U.S. Army Veterinary Corps for source inspection, the quality assurance personnel representing the contracting officer, and other military agencies, as deemed necessary, will be requested to participate in the PAS, and their comments will be included in the quality assurance portion of the report.

9.106-4 Reports.

(a) The result of the survey will include performance history information and a recommendation for award or no award. The contracting officer makes the final responsibility determination.

(b) When a contracting officer's determination of contractor responsibility is inconsistent with the recommendation in the PAS report, the rationale shall be documented in the contract file. The PAS monitor shall advise the surveying facility of the contracting officer's decision.

(c) Contract specialists shall document the procurement file accordingly.

(d) When the contracting officer makes a determination regarding the prospective contractor's responsibility that is contrary to that recommended in the PAS report, the reason for not following the PAS report recommendation shall be included in the contract file. In each instance when the PAS report recommendation is not followed, the chief of the contracting office must review and concur with the rationale. The contracting officer shall provide written notice to the surveying activity that performed the PAS of the reason for not following the PAS recommendation.

9.106-90 DLA pre-award survey monitors.

(a) Each contracting activity or office will designate an organizational element to serve as the focal point for PAS and to be the principal point of contact with PAS monitors at surveying activities. The focal point will review PAS requests for completeness and accuracy before forwarding these requests to surveying activities. Upon receipt of completed PAS, the contracting officer will review the reports and shall consult with available technicians in particular areas, such as cost and price analysts, when there are doubts as to the validity of the information in the survey report. If the PAS contains information questioning a company's quality control, then the survey report shall be reviewed with the contracting activity’s or office’s quality assurance personnel. The PAS Monitor shall:

(1) Send one copy of the completed report to the contract specialist for placement in the contract file.

(2) Send one copy of all formal PAS documentation regarding a company's quality control (if information is included in the survey results) to the product specialist.

(3) Maintain one copy of each survey for a period of one year.

(4) A register of all PAS requests and responses shall be maintained in a current status by the PAS monitor at each contracting activity or office. In addition, maintain the tracking number (e.g., PAS number) as an audit trail.

SUBPART 9.2 – QUALIFICATIONS REQUIREMENTS

(Revised April 28, 2014 through PROCLTR 2014-67)

9.202 Policy.

(a)(1)(S-90) The chief of the contracting office shall provide to DLA Acquisition J72 a brief summary of the proposed plan to establish a qualified products list (QPL), qualified manufacturers list (QML), or qualified bidders list (QBL) requirement. Approval by J72 and the Director, DLA Acquisition (J7) is not required, unless J72 or the Director requests a review of the plan. The chief of the contracting office shall approve the establishment of a qualification requirement, subject to the requirements of FAR Subpart 9.2 and after considering any comments of the contracting activity or office competition advocate and the activity commercial advocate.

9.203-90 Qualified product lists (QPLs), qualified Manufacturers lists (QMLs), Qualified Bidders Lists (QBLs) and Qualified Testing Suppliers Lists (QTSLs).

(a) Solicitation provisions and contract clauses.

(1) QPL connector assemblies and QPL electrical contacts.

(2) Use 52.209-9000 in solicitations and awards when purchasing QPL connectors with

contacts listed on other QPL(s). Qualified testing suppliers list. Use clause 52.209-9002 in solicitations and awards for Federal Supply Classes (FSCs) 5961 and 5962 items, including when the acquisition is conducted using FAR Part 12. If a QPL or QML is applicable, also insert FAR clause 52.209-1.

(3) Qualified Supplier List for Manufacturers (QSLM)/Qualified Suppliers List for

Distributors (QSLD). Use clause 52.209-9012 in solicitations and contracts which have a QSLM and/or a QSLD requirement for the item. There must be an established QSLM/QSLD in place before inclusion of this clause. This clause shall not be used for specified items in FSCs 1005, 1010, 1015, 1020, 1025, 1055, and 1095. Use instead clause 52.209-9033 when the item description states that clause is applicable.

(4) Component QPL/QML items. Use clause 52.209-9013 with FAR clause 52.209-1 in

all solicitations and contracts that contain component QPL(s)/QML(s).

(5) QSLD for FSCs 5961 and 5962. Insert clause 52.209-9028 in solicitations and

awards for all FSCs 5961 and 5962 items, including when the acquisition is conducted using FAR Part 12. If a QPL/QML is applicable, also insert FAR clause 52.209-1.

(6) QSLM for FSCs 1005, 1010, 1015, 1020, 1025, 1055, and 1095. Insert the clause at 52.209-9033 in solicitations and awards issued by DLA Land and Maritime for items in FSCs 1005, 1010, 1015, 1020, 1025, 1055, and 1095 when the item description states the clause is applicable.

9.206-2-90 Contract clause.

In accordance with FARS DEV 09-04, the contracting officer shall not insert the clause at FAR 52.209-1 when the following conditions apply:

(a) A qualification requirement in the form of a QSLD or QSLM has been established by the contracting activity or office, in accordance with the requirements in FAR and DLAD 9.2;

(b) A DLAD clause that provides notice of QSLD or QSLM requirements, instructions for obtaining provisions governing qualification, and associated contract terms and conditions has been authorized for repetitive use in accordance with 1.301-91(b); and

(c) No additional qualification requirement in the form of a QPL, QBL, or QML applies.

9.207 Changes in status regarding qualification requirements.

(b) See 11.302-90 for policy regarding notification and assistance to sources removed from the item description.

9.207-90 Solicitation provisions and contract clauses for DLA special supplies, equipment and other items.

(a) Ensure that the ALRE provision 52.209-9001 is included in the solicitation for all ALRE requirements with a Special Procedures Code (SPC) of “01” and when the Acquisition Method Suffix Code (AMSC) is B, C, K, M, N, S, V, or Y.

SUBPART 9.3 – FIRST ARTICLE TESTING AND APPROVAL

9.302 General

9.302-90 DLR First Article Requirements.

First Article requirements supporting Depot Level Repairable (DLR) items shall be solicited, evaluated, and awarded as required by the specific service requirements. Requirements, including testing requirements, disposition of first article items, and clauses associated with the first article items shall be in accordance with the service DLR specifications.

9.306 Solicitation requirements.

(c)(1) Insert 52.209-9019 in solicitations and contracts for items that require first article testing, including when acquiring items using FAR Part 12; unless—

(i) The information provided by the product specialist in the Material Master (Classification section > Product Assurance tab) indicates the specification requires submission of drawings for Government approval prior to production of first article test units; for this exception, insert 52.209-9019 with its Alternate I and 52.209-9021;

(ii) The acquisition is for DLA Aviation DLR items managed by Army Aviation and Missile Command (AMCOM); for this exception, insert 52.209-9019 with its Alternate II; or

(iii) The acquisition is for DLA Land and Maritime DLR items managed by Logistics Command (LOGCOM); for this exception, insert 52.209-9029.

(S-90)(1) When acquiring items that require FAT (either in accordance with FAR 52.209-3 or 52.209-4) and the dollar value of the procurement is not expected to exceed the SAT, clause 52.209-9015 may be used if—

(i) One or more sources are identified as having been previously approved for waiver of the FAT requirements, and the contracting officer has confirmed with the product specialist that the sources are still eligible for a waiver;

(ii) The file is thoroughly documented with the rationale for considering only items produced by sources eligible for waiver of the FAT requirements; and

(iii) The price can be determined fair and reasonable.

(2) When clause 52.209-9015 is used, the contracting officer shall—

(i) Delete from the solicitation any clauses other than 52.209-9015 that reference FAT; and

(ii) Correct the item description by—

(A) Deleting any reference to FAT requirements ; and

(B) Adding the following statement “This procurement is limited to consideration of quotes/offers for items produced by sources that are eligible for waiver of first article testing requirements (see 52.209-9015).”

(f) Insert clause 52.211-9019, Reduced Delivery Schedule Applies when First Article Testing Requirements are Waived, in all solicitations and contracts for items that require FAT, including when acquiring items using FAR Part 12.

(i)(S-90)(A) When FAR 52.209-3 applies and the Government’s cost to review the contractor’s FAT report will be used as a factor in evaluating offers, insert the provision at 52.209-9016 with its Alternate I, in solicitations, including when acquiring items using FAR Part 12.

(B) When FAR 52.209-4 applies and the Government’s testing cost will be used as a factor in evaluating offers, insert provision 52.209-9016 in solicitations, including when acquiring items using FAR Part 12.

(i)(S-91) First article evaluation factors, Logistics Command (LOGCOM) DLA Land and Maritime.

(A) Insert the provision at 52.209-9030, First Article Evaluation Factors (LOGCOM DLR – DLA Land and Maritime) in solicitations for DLA Land and Maritime acquisitions of depot level repairable items managed by LOGCOM when first article testing is required.

(B) Use the provision with its Alternate I when the first article testing will be performed by the Government.

9.308 Contract clauses. .

9.308-1 Testing performed by the contractor.

(a) When it has been determined that first article approval is required and the testing will be performed by the contractor, the contracting officer shall follow the policies in 9.308-1(a)(90)-(93):

(90) Pre-solicitation.

(i) Ensure that—

(A) First article inspection and testing requirements are clearly stated;

(B) Sources currently waived for FAT are identified, or a statement is present indicating there are no waived sources, when the clause at 52.209-9015 will be used (see 9.306(S-90)(1));

(C) The number of calendar days allotted for the contractor to produce and test the samples is commensurate with the amount of time it will take the contractor to obtain materials, produce the samples, perform all the required tests, and prepare and submit the test report; and

(ii) Use two-party, negotiated acquisition procedures when acquiring items that require first article testing. Micro-purchase procedures and simplified acquisition procedures that solicit and/or award automatically shall not be used.

(91) Solicitation.

(i)(A) Insert the clause at FAR 52.209-3 with its Alternate I. Complete the fill-ins, including the actual number of units required for testing, with information in the Material Master (Classification section > Product Assurance tab);

(B) Ensure the delivery schedule specified in the solicitation includes the number of calendar days allotted to the contractor for FAT and submission of the test report; and the number of calendar days allotted to the Government to evaluate the first article test report and provide disposition to the contractor; and

(C)(1) Select the Service Material Number S00000053 (Additive CLIN) for ““Contractor first article test (FAT) (including test report).” Within the Additive CLIN insert:

(i) The inspection and acceptance points;

(ii) Identify the “Contractor first article test (FAT) (including test report)” quantity as “1 TE (TEST);” and

(ii) Insert the clauses in solicitations and contracts as prescribed below, including when acquisitions are conducted using FAR Part 12:

(A) 52.209-9017, First Article – Contractor Test – Additional Requirements; with its alternates as prescribed below, when applicable:

(1) Use Alternate I when the product specialist has communicated to the contracting officer that first article approval authority shall be delegated to the Defense Contract Management Agency (DCMA) administrative contracting officer (ACO) whenever the awardee will be required to perform contractor FAT;

(2) Use Alternate II for clothing and textile (C&T) items;

(3) Use Alternate III when the Material Master (Classification section > Product Assurance tab) specifies terms for disposition of approved first article units that differ from the terms in FAR 52.209-3. The contracting officer shall complete the appropriate fill-in;

(4) Use Alternate IV when progress payments are authorized for the first article. Circumstances that justify the need for progress payments (such as when exceptionally high start-up costs are anticipated) and the basis for determining the maximum dollar value and/or percentage of total contract price shall be thoroughly documented in the contract file.

(5) Use Alternate V when the product specialist has communicated to the contracting officer that the item requires in-process verification of the first article manufacture by the cognizant quality assurance representative (QAR).

(92) Evaluation of offers. Review the price offered for the “Contractor First Article Test (FAT) (including test report). The price offered must be determined fair and reasonable as well as the price offered for the production units. Evaluation shall be based in part on the terms for disposition of the first article units.

(93) Award of contract.

(i) When award is made for an item that requires Contractor FAT, the following requirements apply:

(A) Ensure the appropriate Service Material Numbers (Additive CLIN) are established for Contractor FAT in the award document and in SAP, upon funding of the award. Whether separately priced or not, a FAT Additive CLIN is a deliverable and must be accounted for. An Additive CLIN that was not separately priced in the quote/offer is still a deliverable, but it is not payable.

(B) Ensure all appropriate documents are placed in the electronic contract file (ECF).

(1) Outline agreements. When awarding outline agreements that include items with FAT requirements, lock the Service Material line item on the delivery order, to prevent payment of the line prior to receipt of the testing/approval certification; and lock the “FAT” row in SAP.

(2) When FAR clause 52.209-3 was included in the solicitation, and it has been determined that the FAT and approval requirements will be waived for the awardee, the contracting officer shall reflect this in the award by taking the following actions:

(i) Insert the clause at 52.209-9020 in the award; and

(ii) Correct the item description by—

(A) Deleting any reference to first article testing in the purchase order test (POT); and

(B) Add the following statement: FAT requirements are waived for this procurement.

9.308-2 Testing performed by the Government.

(a) When it has been determined that first article approval is required and the testing will be performed by the Government, the contracting officer shall follow the policies in 9.308-2(a)(90)-(93):

(90) Pre-solicitation.

(i) Ensure that—

(A) First article inspection and testing requirements are clearly stated;

(B) Sources currently waived for Government FAT are identified, or a statement is present indicating there are no waived sources, when the clause at 52.209-9015 will be used (see 9.306(S-90)(1)); and

(C) The number of calendar days allotted for the contractor to produce and deliver the first article units to the Government testing facility is commensurate with the amount of time it will take the contractor to obtain materials, produce the first article units, perform all the required tests, and deliver the first article units to the testing facility.

(ii) Use two-party, negotiated acquisition procedures when acquiring items that require Government FAT. FAT acquisitions can be Auto Solicited but not Auto Evaluated or Auto Awarded.

(91) Solicitation. Insert the clauses as prescribed below, with alternates, as applicable:

(i)(A) Insert the clause at FAR 52.209-4, First Article Approval – Government Testing, with its Alternate I;

(B) Complete the fill-ins in FAR 52.209-4 with information in the Material Master (Classification section > Product Assurance tab); and

(C) Ensure the delivery schedule specified in the solicitation includes the number of calendar days allotted to the contractor to produce and deliver the first article units; and the number of calendar days allotted to the Government to test the first article units and provide disposition to the contractor; and

(D) Select the Service Material Number S00000052 (Additive CLIN) for “Government First Article Test (FAT).” Within the Additive CLIN insert:.

(1) The inspection and acceptance points.

(2) The quantity and unit of issue as “1 EA.”

(ii) Insert the clauses in solicitations and contracts as prescribed below; including when acquisitions are conducted using FAR Part 12:

(A) 52.209-9018 with its alternate(s) as prescribed below, if applicable—

(1) Use Alternate I when the product specialist has communicated to the contracting officer that the item requires in-process verification of the first article manufacture by the cognizant quality assurance representative (QAR).

(2) Use Alternate II for clothing and textile (C&T) items;

(3) Use Alternate III for Medical and Subsistence items. The contracting officer shall complete the appropriate fill-in in paragraph (a)(2)(ii) with information in the Material Master (Classification section > Product Assurance tab); or, if no alternative direction appears, mark “Other,” and insert “in accordance with contract terms.”

(4) Use Alternate IV for meal, ready-to-eat (MRE) and tray pack items;

(5) Use Alternate V when the item description cites that MIL-STD-1525B applies;

(6) Use Alternate VI when the Material Master (Classification section > Product Assurance tab) specifies terms for disposition of the first article units that differ from the terms in FAR 52.209-4. The contracting officer shall complete the appropriate fill-in;

(7) Use Alternate VII when progress payments for the first article units are authorized in the contract. Circumstances justifying the need for progress payments (e.g., when exceptionally high start-up costs are anticipated, etc.) and the basis for determining the maximum dollar value and/or percentage of total contract price shall be thoroughly documented in the contract file.

(8) Use Alternate VIII in requests for quotes when Government FAT requirements apply, and the contracting officer determines its use is appropriate (e.g., if prior quoters for the item are known to have submitted unbalanced quotes in the past, etc.).

(92) Evaluation of offers.

(i) Review the price offered for the Government FAT. The price offered must be determined fair and reasonable, as well as the price offered for the production units. Evaluation shall be based in part on the terms for disposition of the first article units.

(ii) If provision 52.209-9016 was included in the solicitation, the Government’s estimated testing costs shall be used as a factor in evaluating offers.

(93) Award.

(i) When award is made for an item that requires Government FAT, the following requirements apply:

(A) Ensure the Service Material Numbers (Additive CLIN) are established for Government FAT in the award document and in SAP, upon funding of the award. Whether separately priced or not, a FAT CLIN is a deliverable and must be accounted for. An additive CLIN that was not separately priced in the quote/offer is still a deliverable, but it is not a payable.

(B) Ensure all appropriate documents are placed in the electronic contract file (ECF).

(C) The FAT/Testing Monitor (or the contracting officer, when serving as the FAT/Testing Monitor) is responsible for providing notice to the testing facility upon receipt of the notice required from the contractor prior to the date when the contractor will present the first articles to the QAR for inspection.

(D) Outline agreements. When awarding outline agreements that include items that require “Government First Article Test (FAT),” lock the Service Material line item on the delivery order, to prevent payment of the line prior to receipt of test/approval certificate; and lock the FAT row in SAP.

(ii) Waiver of Government FAT. When clause 52.209-4 was included in the solicitation, and it has been determined that the FAT and approval requirements will be waived for the awardee, the contracting officer shall reflect this in the award by taking the following actions:

(A) Insert clause 52.209-9020 in the award;

(B) Reduce the delivery schedule specified in the solicitation by the number of calendar days allotted to the contractor to produce and deliver the first article units; and the number of calendar days allotted to the Government to test the first article units and provide disposition to the contractor; and

(C) Correct the item description by –

(1) Deleting any reference to FAT; and

(2) Adding the following statement “FAT requirements are waived for this procurement.”

9.308-2(90) Pre-award sample(s) for medical materiel.

Use 52.209-9003 in solicitations for medical materiel. If the contracting officer determines that routine PAS techniques are inadequate or have failed to result in a conclusive determination of the prospective contractor’s responsibility, the clause allows the contracting officer to request a sample to verify responsibility.

(a) Preaward samples may be required only when the contracting officer has included in the file written documentation detailing the reasons that a conclusive determination of the prospective contractor’s responsibility is not possible unless preaward samples are submitted for evaluation.

(b) The clause shall not be used when any of the following conditions exist:

(1) Sole source items

(2) Rapid entry items

(3) Military unique items

(4) Repair parts

(5) Customer Direct purchases

(6) Bid samples are required

(7) First article testing is required

(c) Insert in paragraph (a) the item number(s) and number of units required; insert in paragraph (c)(2) the number of days, not to exceed 20 days, needed to evaluate the samples.

9.390 Compatibility testing.

When the Material Master indicates compatibility testing is required, insert clauses 52.209-9022 and 52.209-9023 in solicitations and awards, including when acquisitions are conducted using FAR Part 12. Complete the fill-ins in 52.209-9023 with information shown in the Material Master (Classification section > Product Assurance tab).

9.391 Government fit verification testing.

When acquiring DLA Aviation items and the Material Master indicates Government fit verification testing is required, insert clauses at 52.209-9024 and 52.209-9025 in solicitations and awards, including when acquisitions are conducted using FAR Part 12. Complete the fill-ins in 52.209-9025 with information shown in the Material Master (Classification section > Product Assurance tab).

SUBPART 9.4 – DEBARMENT, SUSPENSION, AND INELIGIBILITY

9.404 System for Award Management Exclusions.

The records required by FAR 9.404(b) are maintained for DLA by the Special Assistant for Contracting Integrity (SACI).

9.404-90 Sources for clothing/textile components.

Use 52.209-9004 in all orders for National Industries for the Blind (NIB) and SourceAmerica clothing and equipment items which are to be fabricated in whole or in part from a cloth or textiles subcontractor.

9.404-91 Identification of sources for all components for clothing/textile items.

Use 52.209-9005 in solicitations for clothing/textile items which are to be fabricated in whole or in part from cloth or textiles.

9.405 Effect of listing.

(a) In order to take one of the contracting actions identified in FAR 9.405, 9.405-1(b), or 9.405-2, the activity Commander or Director (or the CCO for contracting offices for which the Director, DLA Acquisition, is the HCA) shall forward a written request, including supporting information and rationale that has been reviewed and approved by the HCA, to the SACI via the Office of Counsel for a determination that there is a compelling reason to make an exception. The proposed contracting action may not be taken until the SACI notifies the affected contracting activity or office that an exception has been approved. Upon approval of the exception, the SACI is responsible for providing a copy of the determination to the General Services Administration as required by DFARS 209.405(a).

(S-90)(a) From the time a report recommending debarment or suspension is forwarded to the General Counsel, until determination is made whether to initiate debarment or suspension action, the recommending activity or office and any other affected contracting activity or office that is aware of the recommendation will coordinate with the DLA General Counsel, before taking any of the following actions with respect to the subject contractor:

(1) Awarding a contract, issuing a purchase order, or entering the contractor’s name in an automated purchase system.

(2) Renewing or otherwise extending an existing contract or subcontract.

(3) Consenting to or approving a subcontract to be awarded by or to the contractor.

(4) Authorizing novation of a contract or agreeing to change of name for the contractor.

(b) Upon submission to the DLA General Counsel of a report recommending debarment or suspension, contracting officers, in coordination with Office of Counsel, will consider removing the subject contractor’s name from all automated purchase systems. If the removal is accomplished, one contracting officer at each affected contracting activity or office shall notify the contractor that the contractor has been removed from the systems and a report recommending the contractor’s suspension or debarment has been submitted to DLA Suspension and Debarment Official. The notice shall include a brief summary of the reasons for the recommendation. Through Counsel, each affected activity or office shall notify the DLA General Counsel, by telephone when the contractor is removed from automated purchase systems. For simplified acquisition purchase procedures, for other than automated purchase systems see subparagraph (c)(3) below.

(c) Prior to a determination whether to suspend or debar a contractor recommended for debarment or suspension, if the subject contractor submits an offer that is otherwise in line for an award, the cognizant contracting officer will review the fact sheet furnished pursuant to 9.406-3(a)(S-90)(iv)(A) below and any other supporting data that the contracting officer deems relevant.

(1) After review of the fact sheet and supporting data, if the contracting officer proposes to award the contract to the subject contractor, the contracting officer, through the Office of Counsel, shall coordinate with the DLA General Counsel, prior to making the award.

(2) After review of the fact sheet and supporting data, if the contracting officer determines that the contractor is not responsible, the contracting officer shall notify the contractor of the determination in writing, advise the contractor that a recommendation to suspend or debar the contractor has been forwarded to the DLA Suspension and Debarment Official, and provide to the contractor a brief summary of the reasons for the recommendation and for the determination of nonresponsibility. If the contractor is a large business, the contracting officer shall proceed with award to the next low responsible offeror that has submitted a responsive bid or technically acceptable proposal.

(3) If a contractor inquires as to the status of a quote it submitted under simplified acquisition procedures other than by automated purchase systems, advise the contractor that a recommendation to suspend or debar the contractor has been forwarded to the DLA Suspension and Debarment Official whenever the facts supporting the recommendation are the basis for rejecting the contractor’s quotation. Provide the contractor a brief summary of the reasons for the recommendation.

(4) The contracting officer, through the Office of Counsel, shall coordinate by telephone with DLA General Counsel, actions to be taken under subparagraphs (2) and (3) above.

(S-91) Review of files for potential claims and additional remedies.

(1) When a DLA contracting activity or office learns that a contractor has been suspended, debarred or proposed for debarment, or a report has been submitted pursuant to DFARS 209.406-3(a) recommending debarment or suspension, the contracting activity’s or office’s records shall be reviewed to determine whether the activity or office has current or has had past contractual relationships with the contractor or its affiliates and, if so, whether the Government may have any basis pursuant to those relationships for recovery of damages from, or other claims against, the contractor.

(2) If a contracting activity or office determines that there may be such a basis, information stating the factual basis in as much detail as practical shall be forwarded promptly toDLA General Counsel.

(S-92) Procedures and responsibilities. To preclude contractors that are debarred, suspended, or proposed for debarment from receiving contracts, contracting activities and offices shall ensure that procedures are in place—

(1) To notify the DCRL monitor when contractors that are identified as debarred, suspended, or proposed for debarment have been added to the System for Award Management (SAM) Exclusions;

(2) To preclude awards of automated delivery orders for long-term contracts (LTCs) to contractors that are debarred, suspended, or proposed for debarment;

(3) To block the automated processing of all purchase requests (PRs) in SAP when a contractor that is suspended, debarred, or proposed for debarment is identified as a sole source, and refer the PR for manual review by the contract specialist.

9.405-1 Continuation of current contracts.

(S-90) Authorization for novation of a contract or change of name agreement held by a contractor debarred or suspended by any Federal executive agency or proposed for debarment by any DoD component shall be coordinated with the DLA SACI through Office of Counsel, prior to such authorization.

9.406 Debarment.

9.406-3 Procedures.

(a)(S-90) Reports based on indictments or convictions.

(i) Submit reports recommending suspension based upon an indictment or criminal information to the General Counsel, within 2 weeks of the date of indictment or information and include a copy of the indictment (signed, with docket number and date).

(ii) For purposes of recommending debarment based on a conviction, submit the report within 2 weeks of the date of sentencing. Include a copy of the judgment or conviction order.

(iii) The contracting activity’s or office’s point of contact shall be an attorney in the Office of Counsel.

(iv) The report required by DFARS and DFARS PGI 209.406-3 shall be signed by the contracting officer, reviewed and approved by the contracting activity’s HCA (Director, DLA Acquisition for contracting offices) and submitted by the Commander or Director of the contracting activity recommending to the DLA General Counsel. Designate the report “For Official Use Only,” unless the contents of the report warrant a security classification.

(v) When a report recommending debarment or suspension is forwarded to DLA General Counsel, provide notice of this action to contracting personnel at the recommending activity or office assigned to commodities for which solicitations are likely to result in offers from the contractor identified in the report and to other DLA contracting offices.

(c)(6) The effect includes the possibility that a PAS evaluation factor may be applied to offers from the debarred source for the period of time specified in 9.106-1(a)(S-90)(1) after the debarment is no longer in effect (see 15.605-90).

9.406-90 Procedures for debarments based on poor performance.

(a) Policy. Where poor performance is to be relied upon as a basis for debarment in accordance with FAR 9.406-2(b), the responsibility for ensuring that action is taken to initiate debarment proceedings lies primarily with the cognizant contracting officer.

(b) Referral. In accordance with the procedures contained in subparagraph (c) below, the cognizant contracting officer will refer to the Office of Counsel those instances of contractor nonperformance that are so serious as to justify consideration of possible debarment action.

(c) Decision-making process.

(1) Before referring a particular contractor to the Office of Counsel for possible preparation of a debarment report, the cognizant contracting officer must be able to document the poor performance which will form the basis for a debarment recommendation. The contracting officer must also be able to demonstrate why debarment is appropriate under the circumstances, including any mitigating information known to the contracting officer. Referrals to the Office of Counsel should include all current information necessary to support the business decision that is to be recommended to the DLA SACI. The contracting officer should be prepared to update the information provided once the debarment process is underway and to participate with counsel in presenting the case to the DLA SACI.

(2) When recommending a contractor to the Office of Counsel for consideration of a possible debarment recommendation on the basis of poor performance, the cognizant contracting officer shall provide:

(i) A clear identification of the contractor, including divisions, subsidiaries, and affiliates, and contractor employees, officers, and directors, specifically identifying the contractor personnel who have participated in the Government contracting process.

(ii) A detailed account of the contractor’s current active contracts, recent, relevant performance history, and history of performance problems prompting the referral. While this detailed accounting of contracting performance will necessarily focus on contracts awarded by DLA, performance on other Government contracts must also be addressed. In this connection, the assigned contract administration office should be asked to provide information, as well as comments, on the action being considered.

(iii) The reasons identified for the contractor’s poor performance and the action taken by the Government to protect its business interests.

(iv) A discussion of whether a debarment action directed toward a specific division, organizational element, or commodity would adequately protect the Government’s interests.

(v) A discussion of the period of debarment to be recommended to the DLA SACI, supported by rationale that addresses the likelihood that the contractor will be able to take corrective actions necessary to successfully perform in the future.

9.407 Suspension.

9.407-3 Procedures.

(c)(4) The effect includes the possibility that a preaward survey evaluation factor may be applied to offers from the suspended source for the period of time specified in 9.106-1(a)(S-90)(1) after the suspension is no longer in effect (see 15.304(c)(95)).