AFAC

Air Force Acquisition Circular (AFAC) 2005-0810
10 AUG 2005

FOR ADDITIONAL INFORMATION CONTACT: SAF/AQCP, 1060 Air Force Pentagon, Washington, DC 20330-1060, (703) 588-7060.

Summary of Changes

Note: “ ***** ” below indicates that text is omitted.

AFAC Changes

Supplementary information about the change: The Defense Science Board (DSB) Task Force on Management Oversight in Acquisition Organization was asked to assess the Air Force’s structure and methods of oversight to ensure the integrity of acquisition decisions in the Department of the Air Force. Acting USD (AT&L) memo, Acquisition Integrity, dated 1 Mar 05, summarizes the DSB’s recommendations. One of the recommendations is to require additional avenues for voicing concerns (e.g., ombudsmen). The below AFFARS changes implements an Air Force ombudsman program in response to this recommendation.

SUBPART 5301.91 -- OMBUDSMAN PROGRAM

5301.9101 Purpose.

The purpose of the Air Force ombudsman program is to foster communication between government and industry. The primary function of the ombudsman is to consider concerns about specific issues in acquisitions, to communicate these concerns to senior management personnel responsible for oversight, and to assist in the resolution of the concerns.

5301.9102 Policy.

(a) MAJCOM and DRU commanders shall appoint an experienced senior official who is independent of the contracting officer and program manager as the ombudsman at their MAJCOM/DRU. For AFMC and AFSPC Centers, an ombudsman is required at each Center, instead of at the MAJCOM.

(b) The ombudsman will have the authority to call upon other resources of the activity to assist in resolving acquisition issues or concerns (e.g. administrative support, independent review teams).

(c) Contracting officers shall identify the ombudsman in the initial announcement of the acquisition as well as in the draft and final RFP.

(d) The ombudsman shall:

(1) Act neutrally to facilitate resolution of issues or concerns raised by concerned parties;

(2) Act in a manner that does not compromise the concerned party, and, if requested, maintain anonymity of the parties

(3) Avoid any appearance of usurping normal procurement authority (e.g., program manager, contracting officer, and source selection authority);

(4) Ensure all affected or knowledgeable offices and officials are consulted as part of any resolution process;

(5) Inform the commander, as required, of issues raised and actions taken; for AFMC and AFSPC centers, report only to the Center Commander, Laboratory Commander, or PEO; and for other MAJCOM/DRUS, report only to the MAJCOM CC or PEO;

(6) Review complaints relative to multiple-award task and delivery order contracts awarded under 10 U.S.C. 2304a(d)(1)(B) or 2304b(e) to ensure that all contractors are afforded a fair opportunity to be considered for task and delivery orders in excess of $2,500, consistent with the procedures in the contract;

(7) Consistent with security requirements, have access to the appropriate offices and be allowed to collect all facts relevant to the resolution of issues raised by concerned parties. Ombudsmen are granted access to proprietary information. Source selection information must be obtained through the source selection authority.

(e) The Ombudsman Program does not replace the agency level protest, GAO bid protest or disputes processes.

(f) The Air Force ombudsman is the Associate Deputy Assistant Secretary (ADAS) (Contracting), who may take action to assist in resolving issues, concerns, disagreements, and recommendations that cannot be resolved at the MAJCOM/DRU level, or those having Air Force wide implications.

(g) Government personnel may use the Ombudsman Program as a way to express concerns about an acquisition.

5301.9103 Solicitation provision and contract clause.

Insert a clause substantially the same as the clause at 5352.201-9101, Ombudsman, in all solicitations (including draft solicitations) and contracts.

*****

5305.207 Preparation and Transmittal of Synopsis

(20) In all synopsis announcing competitive or sole source acquisitions, the contracting officer shall indicate that the clause at 5352.201-9101, Ombudsman, is applicable.

*****

5316.505 Ordering. (Deleted)

*****

5352.201-9101 Ombudsman.

As prescribed in 5301.9103, insert the following clause:

OMBUDSMAN (AUG 2005)

(a) An ombudsman has been appointed to consider and facilitate the resolution of concerns from offerors, potential offerors, and others for this acquisition. When requested, the ombudsman will maintain strict confidentiality as to the source of the concern. The existence of the ombudsman does not affect the authority of the program manager, contracting officer, or source selection official. Further, the ombudsman does not participate in the evaluation of proposals, the source selection process, or the adjudication of protests or formal contract disputes. The ombudsman may refer the party to another official who can resolve the concern. The ombudsman may not serve as an advocate for any party.

(b) Before consulting with an ombudsman, concerned parties must first address their concerns, issues, disagreements, and/or recommendations to the contracting officer for resolution. Consulting an ombudsman does not alter or postpone the timelines for any other processes (e.g., agency level bid protests, GAO bid protests, requests for debriefings, employee-employer actions, contests of OMB Circular A-76 competition performance decisions).

(c) If resolution cannot be made by the contracting officer, concerned parties may contact the Center/MAJCOM ombudsmen, [Insert names, addresses, telephone numbers, facsimile numbers, and e-mail addresses]. Concerns, issues, disagreements, and recommendations that cannot be resolved at the MAJCOM/DRU level, may be brought by the concerned party for further consideration to the Air Force ombudsman, Associate Deputy Assistant Secretary (ADAS) (Contracting), SAF/AQC 1060 Air Force Pentagon, Washington DC 20330-1060, phone number (703) 588-7004, facsimile number (703) 588-1067.

(d) The ombudsman has no authority to render a decision that binds the agency.

(e) Do not contact the ombudsman to request copies of the solicitation, verify offer due date, or clarify technical requirements. Such inquiries shall be directed to the Contracting Officer.

(End of clause)

5352.216-9000 Awarding orders under multiple award contracts.

As prescribed in 5316.506, insert a clause substantially the same as the following clause in solicitations and contracts:

AWARDING ORDERS UNDER MULTIPLE AWARD CONTRACTS (AUG 2005)

*****

(d) Deleted.

(d) This clause does not guarantee the contractor issuance of any task order or delivery order above the minimum guarantee(s) stated in [identify clause that stipulates minimum guarantee(s)] of this contract.

*****

____________________

Supplementary information about the change: None.

SUBPART 5301.90 — CLEARANCE

5301.9000 Scope and definitions.

(a) This subpart establishes clearance requirements for the contract actions identified below:

(1) An action intended to result in award of a competed, sole source or negotiated contract or modification of any contract;

(2) An action intended to result in definitization of an undefinitized contract action (UCA), an undefinitized change order, or an undefinitized long lead contract, or in the pricing of:

(i) An unpriced option or an option with only a not-to-exceed price;

(ii) Provisioned items orders (PIOs); or

(iii) Unpriced orders under Basic Ordering Agreements (BOA);

(3) An action intended to result in issuance of a modification implementing a unilateral price determination;

(4) Priced orders issued under BOA; and

(5) An action intended to result in the exercise of an option when the option exercise is not in strict accordance with the previously approved pricing arrangement or other contract terms and conditions.

(b) Excluded from business or contract clearances are: (1) actions that create a UCA, undefinitized change order, undefinitized long lead contract; or (2) orders issued against existing contracts in accordance with the terms and conditions of the basic contract.

(c) “Business Clearance” means:

(1) For competitive acquisitions, approval to issue the solicitation.

(2) For noncompetitive contract actions, approval to begin negotiations if traditional or commercial pricing is used.

(d) “Begin negotiations” means, for the purpose of noncompetitive contract actions using traditional or commercial pricing, starting discussions with an offeror for the purpose of reaching agreement on all aspects of the proposal. Initiation of audits and fact-finding necessary to evaluate the proposal and develop the Government’s negotiation objective do not constitute negotiations.

(e) “Contract Clearance” means:

(1) For competitive acquisitions, approval to award without discussions or request final proposal revisions in accordance with FAR 15.307.

(2) For noncompetitive contract actions using traditional or commercial pricing, approval to award a contract or contract modification/contract action.

(3) For actions using Integrated Product Team (IPT)/One Pass pricing method, approval to conclude negotiations and award a contract.

(f) “Traditional Pricing” means, for the purpose of noncompetitive actions, the serial process of the Government (1) defining the requirements; (2) requesting and receiving a proposal; and (3) reviewing and evaluating the proposal in order to establish an objective in preparation for negotiations.

(g) “IPT/One Pass pricing” means the process of concurrent requirements refinement, proposal development, fact-finding, and preliminary agreement between the Government and contractor in a noncompetitive acquisition. In this process, the Government and contractor IPT members communicate in an ongoing, structured manner from early planning stages through repetitive model contract development and review of related cost or pricing data.

5301.9001 Policy, thresholds, and approvals.

(a) The objectives of the business and contract clearance process are to ensure that:

(1) Contract actions effectively implement approved acquisition strategies;

(2) Negotiations and contract actions result in fair and reasonable business arrangements;

(3) Negotiations and contract actions are consistent with laws, regulations, and policies; and
(4) An independent review and assessment (i.e. by the clearance authority) for the proposed contract action is accomplished.

(b) The clearance approval authority shall ensure that the clearance process meets the objectives in paragraph (a) above.

(c) The clearance approval authority must seek legal advice (See AFFARS 5301.602-2), ensure that counsel has coordinated on any clearance briefings or presentations, and that counsel’s comments are included in the briefing or presentation.

(d) At the discretion of the clearance approval authority, contract clearances involving non-competitive, traditionally or commercially priced acquisitions are not required when the negotiation team stays within a pre-set negotiation range and meets the parameters approved at the business clearance.

(e) The Source Selection Authority (SSA) shall not to be the clearance approval authority.

(f) Business clearance is not required for actions using IPT pricing.

(g) Contract actions meeting the contract value thresholds set below shall not be awarded without obtaining the required business and contract clearance approval(s). Except for PEO programs support by SMC and contract actions supported by AFMC, MAJCOM HCAs and DRU senior contracting officials shall establish clearance thresholds and approval levels within their units. Clearance approval authority may not be delegated.

(1) For PEO programs supported by SMC, PEO programs supported by AFMC, and for AFMC Other Contracting (excluding Operational)

(2) AFMC Operational Contracting

* Note: Contract value is determined by applying the sum of the value of the basic portion of the instant acquisition, plus any options, sums reserved for provisioning, and the value of any contingencies, such as ceiling, award fees, and performance incentives.

(b) Deleted.

(c) Deleted.

____________________

Supplementary information about the change: The Defense Science Board (DSB) Task Force on Management Oversight in Acquisition Organization was asked to assess the Air Force’s structure and methods of oversight to ensure the integrity of acquisition decisions in the Department of the Air Force. Acting USD (AT&L) memo, Acquisition Integrity, dated 1 Mar 05, summarizes the DSB’s recommendations. One of the recommendations is to require a source selection recommendation of the source selection evaluation team to the source selection authority (SSA). Previously in MP5315.3, Source Selection, this was an option at the discretion of the SSA. The change to MP5315.3 implementing this requirement is effective on 10 Sep 05. There are no other changes to AFFARS 5315.3.