AFAC

Air Force Acquisition Circular (AFAC) 2010-0903
September 3, 2010

FOR ADDITIONAL INFORMATION CONTACT:
SAF/AQCP, 1060 Air Force Pentagon, Washington, DC 20330-1060, (703) 588-7071

SUMMARY OF CHANGES

PART 5301
FEDERAL ACQUISITION REGULATIONS SYSTEM

[Revised September 3, 2010]

[ INTERIM CHANGE: SAF/AQ Memo, 23 Jun 10 ]

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5301.9001 Policy, Thresholds, and Approvals

[ INTERIM CHANGE: SAF/AQ Memo, 23 Jun 10 ]

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(f) Contract actions meeting the contract value thresholds set below shall not be awarded without obtaining the required business and contract clearance approval(s). Clearance approval authority may not be delegated, however unit specific assignments pursuant to subparagraph (2)(i) are authorized.
(1) For PEO programs supported by SMC, PEO and DAO programs supported by AFMC and for AFMC and SMC Other Contracting (excluding Operational)

** Note: SMC change effective October 1, 2010

(i) The Deputy Assistant Secretary (Contracting) (DAS(C)) at his or her discretion, may assume the clearance approval authority for the following acquisitions:

(A) For ACAT I (Space/Non-space programs) competitive acquisitions prior to Key Decision Point B or Milestone B (pre-MDAP on Major Defense Acquisition Program Lists); and

(B) For competitive services acquisitions $1B and above.

(ii) Request for confirmation of the clearance approval authority for these programs in paragraph (i)(A) and (B) shall be submitted to SAF/AQCK, safaqck.workflow@pentagon.af.mil, 10 working days prior to convening the acquisition strategy panel (ASP) or the staffing of the acquisition plan (AP).

(2) For Operational Contracting (excluding AFRC)

** Note: SMC change effective October 1, 2010

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MP5301.602-3
Processing Ratifications

September 3, 2010

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5. For ratification of unauthorized commitments equal to or greater than $30,000 of appropriated funds, the contracting officer shall forward the file through the wing commander for review by the SCO; for SMC and AFMC, forward the file through the wing commander or equivalent for review by the SCCO. For organizations that do not have a wing commander or equivalent, forward the file to the Center Technology/Functional Director for review. The contracting officer should include words substantially as follows:

"Attached is the ratification file concerning the unauthorized contracting act of (name) for your review. If you concur ratification of this act is appropriate, this file will be forwarded to the Head of the Contracting Activity (HCA) or designee (if delegated) for final approval."

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PART 5308
Required Sources of Supplies and Services

[Revised September 3, 2010]

SUBPART 5308.4 FEDERAL SUPPLY SCHEDULES

5308.405-6(h) Justification approvals

(3)(ii)(A) For a proposed task or delivery order exceeding $11.5 million, but not exceeding $78.5 million, and citing the fair opportunity exception at FAR 16.505(b)(2)(ii) or (b)(2)(iii), the justification must be approved by the SCO or SCCO who meets the criteria in FAR 8.405-6(h)(3)(ii). If a MAJCOM/DRU or AFISRA SCO does not meet the criteria in FAR 8.405-6(h)(3)(ii), then the justification must be approved by the Head of the Contracting Activity (HCA) for the Air Force (DAS(C)/ADAS(C)).

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SUBPART 5316.5 — INDEFINITE-DELIVERY CONTRACTS

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5316.505 Ordering

(b) Orders under multiple award contracts.

(6) Task and delivery order ombudsman. See 5301.91.

5316.505-70 Orders under multiple award contracts

(b) See AFFARS 5308.405-6(h) for the approving officials for a proposed task or delivery order using the fair opportunity exceptions at FAR 16.505(b)(2)(ii) and (b)(2)(iii).

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PART 5315
Contracting by Negotiation

[Revised September 3, 2010]

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5315.209 Solicitation Provisions and Contract Clauses

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(S-92) The contracting officer may not award or modify a contract that includes a special contract requirement commonly referred to as “Tail Up” or “Last Lot Inefficiency,” the purpose of which is to recognize costs related to a loss of productivity for the direct labor workforce or increased supplier costs as a production line near nears shutdown, without the express written approval of the DAS(C) or ADAS(C). Requests for approval to use such a special contract requirement shall be submitted under signature of the SCO or SCCO and forwarded to SAF/AQC at safacqk.workflow@pentagon.af.mil for consideration of approval by the DAS(C) or ADAS(C). These requests must be made not less than 60 days prior to release of a solicitation or a proposed contract modification and include a copy of the special contract requirement and any supporting documentation.

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SUBPART 5316.4 — INCENTIVE CONTRACTS

5316.401 General

(d) The DAS(C) delegates approval of the determination and finding required to justify that the use of an award-fee contract is in the best interest of the Government to the MAJCOM/DRU and AFISRA SCOs, and to the SCCOs at Space and Missile Systems Center (SMC), Electronic Systems Center (ESC), Aeronautical Systems Center (ASC), and Air Armament Center (AAC). This authority may not be further delegated.

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SUBPART 5316.5 — INDEFINITE-DELIVERY CONTRACTS

5316.503 Requirements Contracts

(b)(2) Determinations and congressional notifications for requirements contracts in an amount estimated to exceed $100 million (including all options) must be approved in accordance with AFFARS 5316.504(c)(1)(ii)(D) and MP5316.504(c)(1)(ii)(D).

5316.504 Indefinite-Quantity Contracts

(a) Description

(1) See MP5316.504 for the requirement to obligate funds when awarding indefinite-delivery indefinite-quantity (IDIQ) contracts.

(c)(1)(ii)(D) Limitation on single award contracts.

(1) The authority to make the determination authorized in FAR

16.504(c)(1)(ii)(D)(1)(i), (ii), and (iii) is the Deputy Assistant Secretary (Contracting) (DAS(C)) and the Associate Deputy Assistant Secretary (Contracting) (ADAS(C)). This authority is not further delegated. The determination at FAR 16.504(c)(1)(ii)(D)(1)(iv) shall be approved by the Senior Procurement Executive. For determination and findings and congressional notification requirements see MP5316.504(c)(1)(ii)(D).

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MP5316.504(c)(1)(ii)(D)
Limitation on Single Award Contracts

September 3, 2010

MP5316.504(c)(1)(ii)(D) Approval of Determination and Finding (D&F) for Single-Award Task or Delivery Order Contracts that Exceed $100M (including all options)

1. The contracting officer must submit all D&Fs and congressional notifications to SAF/AQCK at SAFAQCK.Workflow@pentagon.af.mil. In the circumstance where a Justification and Approval (J&A) is required, the J&A package must be submitted with the D&F. In the case where the determination will be approved by the SPE (when it is necessary in the public interest to award the contract to a single source due to exceptional circumstances), in accordance with DFARS 216.504(c)(1)(ii)(D)(1), , both the D&F and J&A, if applicable, will be staffed by SAF/AQCK for approval by the SPE. The congressional notifications must be prepared in accordance with OUSD/DPAP Class Deviation for Notification Requirements for Awards of Single-Source Task- or- Delivery- Order Contracts, DARS Tracking Number 2010-O0007

2. Minimum D&F Contents:

(a) Clear identification of one of the exceptions listed at FAR 16.504(c)(1)(ii) (D)(1).

(b) Circumstances that justify the use of a task or delivery order contract. This should include alternate contract types considered.

(c) Detailed discussion that precludes the award of a multiple-award, task or delivery order contract. At a minimum, this should include alternative acquisition strategies considered, the impact on the program’s delivery or performance schedule, program costs, and mission impact if not allowed to make single award.

(d) D&Fs using the exception that only one source is qualified and capable of performing the work at a reasonable price to the Government should cite and attach the Justification and Approval (J&A) as part of the staffing package.

ADDENDUM —Sample D&F

DETERMINATION AND FINDINGS

AWARD OF SINGLE-AWARD TASK or DELIVERY ORDER CONTRACT EXCEEDING

$100 MILLION FOR [Insert appropriate program identification or name]

FINDINGS:

1. FAR 16.504 prohibits single award contracts for task or delivery order contracts estimated to exceed $100 million unless the head of agency, if no delegation of authority is made, determines in writing that the contract meets one of four exceptions listed in FAR 16.504 (c)(1)(ii)(D)(1).

2. The [insert contracting activity] proposes to purchase [insert description of the item(s)] under a single award task or delivery award contract [insert contract number].

3. The contract will be awarded based on the [clearly identify which exception the program is the basis for the approval].

a. [Describe the circumstance that justifies the use of a task or delivery order contract and alternate contract types that were considered. Discuss why these other contract types were not as appropriate]

b. [Describe the circumstances that preclude the award of a multiple-award, task or delivery order contract. This should be appropriately tailored to the exception being used, but at a minimum, should include alternative acquisition strategies considered, the impact on the program’s delivery or performance schedule, program costs, and mission impact if not allowed to make single award.]

c. The sole source Justification and Approval (J&A) for the [insert program name] was approved on [insert date] and is attached. (if applicable)

DETERMINATION:

Based on the findings above, I hereby determine that the proposed contract meets exception [identify which exception] of FAR 16.504 (c)(1)(ii)(D)(1) and a single award task or delivery order contract estimated to exceed $100 million is authorized.

____________________________ ___ _______
[NAME] DATE
[Insert appropriate signature block]

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SUBPART 5317.74 — UNDEFINITIZED CONTRACT ACTIONS

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5317.7404-5 Exceptions

(b) The authority to grant waivers to the limitations set out in DFARS 217.7404-2, 217.7404-3, and 217.7404-4 pursuant to DFARS 217.7404-5 (b) is wholly retained by the DAS(C) or ADAS(C). Requests for waivers of these limitations shall be submitted to SAF/AQCK at safaqck.workflow@pentagon.af.mil with appropriate justification for consideration.

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SUBPART 5337.5 — MANAGEMENT AND OVERSIGHT OF SERVICE CONTRACTS

5337.503 Agency-head Responsibilities

5337.503-90 Management and Oversight of the Acquisition of Services

See AFI 63-101, Chapter 4, Acquisition of Services

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