234.001 Definition.
234.003 Responsibilities.
234.004 Acquisition strategy.
234.005-1 Competiton
234.001 Definition.
As used in this subpart—
“Acceptable earned value management system” and “earned value management system” are defined in the clause at 252.234-7002, Earned Value Management System.
“Significant deficiency” is defined in the clause at 252.234-7002, Earned Value Management System, and is synonymous with “noncompliance.”
234.003 Responsibilities.
DoDD 5000.01, The Defense Acquisition System, and DoDI 5000.02, Operation of the Defense Acquisition System, contain the DoD implementation of OMB Circular A-109 and OMB Circular A-11.
234.004 Acquisition strategy.
(1) See 209.570 for policy applicable to
acquisition strategies that consider the use of lead system integrators.
(2) In accordance with Section 818 of the National
Defense Authorization Act for Fiscal Year 2007 (Pub. L. 109-364), for major
defense acquisition programs as defined in 10 U.S.C. 2430—
(i)
The Milestone Decision Authority shall select, with the advice of the
contracting officer, the contract type for a development program at the time of
Milestone B approval or, in the case of a space program,
(ii)
The basis for the contract type selection shall be documented in the
acquisition strategy. The documentation—
(A)
Shall include an explanation of the level of program risk; and
(B)
If program risk is determined to be high, shall outline the steps taken
to reduce program risk and the reasons for proceeding with Milestone B approval
despite the high level of program risk; and
(iii)
If a cost-type contract is selected, the contract file shall include the
Milestone Decision Authority’s written determination that—
(A)
The program is so complex and technically challenging that it would not
be practicable to reduce program risk to a level that would permit the use of a
fixed-price type contract; and
(B)
The complexity and technical challenge of the program is not the result
of a failure to meet the requirements of 10 U.S.C. 2366a.
234.005-1 Competition.
(1) A contract that is initially awarded from the competitive selection of a proposal resulting from a general solicitation may contain a contract line item or contract option for the provision of advanced component development or prototype of technology developed under the contract or the delivery of initial or additional prototype items if the item or a prototype thereof is created as the result of work performed under the contract only when it adheres to the following limitations:
(i)
The contract line item or contract option shall be limited to the minimal amount of initial or additional prototype items that will allow for timely competitive solicitation and award of a follow-on development or production contract for those items.
(ii)
The term of the contract line item or contract option shall be for not more than 12 months.
(iii)
The dollar value of the work to be performed pursuant to the contract line item or contract option shall not exceed the lesser of—
(A)
The amount that is three times the dollar value of the work previously performed under the contract; or
(B)
$20 million.
(2) A contract line item or contract option may not be exercised under this authority after September 30, 2014.