subpart 207.1--acquisition plans
(Revised
December 19, 2006)
207.103 Agency-head responsibilities.
207.105 Contents of written acquisition plans.
207.106 Additional requirements for major systems.
207.170 Consolidation of contract requirements.
207.170-1 Scope.
207.170-2 Definitions.
207.170-3 Policy and procedures.
207.171 Component breakout.
207.171-1 Scope.
207.171-2 Definition.
207.171-3 Policy.
207.171-4 Procedures.
207.103 Agency-head responsibilities.
(d)(i) Prepare written
acquisition plans for—
(A) Acquisitions for development, as defined in
FAR 35.001, when the total cost of all contracts for the acquisition program is
estimated at $10 million or more;
(B) Acquisitions for production or services when
the total cost of all contracts for the acquisition program is estimated at $50
million or more for all years or $25 million or more for any fiscal year; and
(C) Any other acquisition considered appropriate
by the department or agency.
(ii) Written plans are not required in
acquisitions for a final buy out or one-time buy. The terms "final buy out" and
"one-time buy" refer to a single contract that covers all known
present and future requirements. This
exception does not apply to a multiyear contract or a contract with options or
phases.
(e) Prepare written acquisition plans for
acquisition programs meeting the thresholds of paragraphs (d)(i)(A) and (B) of this section on a program basis. Other acquisition plans may be written on
either a program or an individual contract basis.
(g) The program manager, or other official
responsible for the program, has overall responsibility for acquisition
planning.
(h) For procurement of conventional ammunition,
as defined in DoDD 5160.65, Single Manager for
Conventional Ammunition (SMCA), the SMCA will review the acquisition plan to
determine if it is consistent with retaining national technology and industrial
base capabilities in accordance with 10 U.S.C. 2304(c)(3) and Section 806 of
Pub. L. 105-261. The department or
agency--
(i) Shall submit the
acquisition plan to the address in PGI 207.103(h) (Pop-up Window or
PGI Viewer Mode); and
(ii) Shall not proceed with the procurement until
the SMCA provides written concurrence with the acquisition plan. In the case of a non-concurrence, the SMCA
will resolve issues with the Army Office of the Executive Director for
Conventional Ammunition.
207.105 Contents of written acquisition plans.
In addition to the requirements of FAR 7.105,
planners shall follow the procedures at PGI 207.105 (Pop-up Window or
PGI Viewer Mode).
207.106 Additional requirements for major systems.
(b)(1)(A) The contracting officer is prohibited by 10
U.S.C. 2305(d)(4)(A) from requiring offers for development or production of
major systems that would enable the Government to use technical data to
competitively reprocure identical items or components
of the system if the item or component were developed exclusively at private expense,
unless the contracting officer determines that—
(1)
The original supplier of the item or component will be unable to satisfy
program schedule or delivery requirements;
(2)
Proposals by the original supplier of the item or component to meet
mobilization requirements are insufficient to meet the agency's mobilization
needs; or
(3)
The Government is otherwise entitled to unlimited rights in technical
data.
(B) If the contracting officer makes a
determination, under paragraphs (b)(1)(A)(1)
and (2) of this section, for a
competitive solicitation, 10 U.S.C. 2305(d)(4)(B) requires that the evaluation
of items developed at private expense be based on an analysis of the total
value, in terms of innovative design, life-cycle costs, and other pertinent
factors, of incorporating such items in the system.
207.170 Consolidation of contract requirements.
207.170-1 Scope.
This section implements 10 U.S.C.
2382.
207.170-2 Definitions.
As used in this section—
“Consolidation of contract requirements” means the use of a
solicitation to obtain offers for a single contract or a multiple award
contract to satisfy two or more requirements of a department, agency, or
activity for supplies or services that previously have been provided to, or
performed for, that department, agency, or activity under two or more separate
contracts.
“Multiple award contract” means—
(1) Orders placed using a multiple award schedule
issued by the General Services Administration as described in FAR Subpart 8.4;
(2)
A multiple award task order or delivery order contract issued in
accordance with FAR Subpart 16.5; or
(3) Any other indefinite-delivery,
indefinite-quantity contract that an agency enters into with two or more
sources for the same line item under the same solicitation.
207.170-3 Policy and procedures.
(a)
Agencies shall not consolidate contract requirements with an estimated
total value exceeding $5.5 million unless the acquisition strategy includes—
(1) The results of market research;
(2) Identification of any alternative contracting
approaches that would involve a lesser degree of consolidation; and
(3) A determination by the senior procurement
executive that the consolidation is necessary and justified.
(i) Market research
may indicate that consolidation of contract requirements is necessary and
justified if the benefits of the acquisition strategy substantially exceed the
benefits of each of the possible alternative contracting approaches. Benefits may include costs and, regardless of
whether quantifiable in dollar amounts—
(A) Quality;
(B) Acquisition cycle;
(C) Terms and conditions; and
(D) Any other benefit.
(ii) Savings in administrative or personnel costs
alone do not constitute a sufficient justification for a consolidation of
contract requirements unless the total amount of the cost savings is expected
to be substantial in relation to the total cost of the procurement.
(b) Include the determination made in accordance
with paragraph (a)(3) of this section in the contract file.
207.171 Component breakout.
207.171-1 Scope.
(a)
This section provides policy for breaking out components of end items
for future acquisitions so that the Government can purchase the components
directly from the manufacturer or supplier and furnish them to the end item
manufacturer as Government-furnished material.
(b)
This section does not apply to—
(1) The initial decisions on Government-furnished
equipment or contractor-furnished equipment that are made at the inception of
an acquisition program; or
(2) Breakout of parts for replenishment (see
Appendix E).
207.171-2 Definition.
“Component,”
as used in this section, includes subsystems, assemblies, subassemblies, and
other major elements of an end item; it does not include elements of relatively
small annual acquisition value.
207.171-3 Policy.
DoD
policy is to break out components of weapons systems or other major end items
under certain circumstances.
(a)
When it is anticipated that a prime contract will be awarded without
adequate price competition, and the prime contractor is expected to acquire any
component without adequate price competition, the agency shall break out that
component if—
(1) Substantial net cost savings probably will be
achieved; and
(2) Breakout action will not jeopardize the
quality, reliability, performance, or timely delivery of the end item.
(b)
Even when either or both the prime contract and the component will be
acquired with adequate price competition, the agency shall consider breakout of
the component if substantial net cost savings will result from—
(1) Greater quantity acquisitions; or
(2) Such factors as improved logistics support
(through reduction in varieties of spare parts) and economies in operations and
training (through standardization of design).
(c)
Breakout normally is not justified for a component that is not expected
to exceed $1 million for the current year's requirement.
207.171-4 Procedures.
Agencies
shall follow the procedures at PGI 207.171-4 (Pop-up Window or
PGI Viewer Mode) for component breakout.