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NMCARS PART 5215 CONTRACTING BY NEGOTIATION



PART 5215 CONTRACTING BY NEGOTIATION

SUBPART 5215.2—SOLICITATION AND RECEIPT OF PROPOSALS AND INFORMATION

5215.204 Contract format.

5215.204-5 Part IV--Representations and Instructions.

(c) When a cost realism evaluation is to be performed, Section M, Evaluation Factors for Award, should include a notice that the proposed costs may be adjusted, for purposes of evaluation, based upon the results of the cost realism evaluation. If the contract is to be firm fixed price, or fixed price with economic price adjustment, the notice is not required, and proposed prices should not be adjusted.

SUBPART 5215.3—SOURCE SELECTION

5215.303 (DFARS 215.303) Responsibilities.

(a) When it is appropriate to have someone other than the contracting officer act as SSA for reasons of high dollar value, mission importance or political visibility, the HCA, (or PEO, for PEO-assigned efforts) may designate an alternate individual to be the SSA.

5215.305 (DFARS 215.305) Proposal evaluation.

(a)(1) Cost or price evaluation. Methods of evaluation which assign a point score to cost or price and combine it with point scores for other evaluation factors generally should not be used. Point scores can be helpful in summarizing subjective evaluation of technical and other factors, but are not needed in evaluating cost or price and tend to obscure the tradeoff between cost/price and other factors, rather than clarifying it. If point scoring of cost/price is utilized, it should be demonstrated that the value of a cost/price point is comparable, in value to the Government, to the value of a non-cost/price point. When a cost realism analysis is performed, the resulting realistic cost estimate should be used in the evaluation of cost, except when using a firm-fixed-price or fixed-price with economic price adjustment type of contract.

(2) Past performance evaluation. When evaluating past performance, the automated Past Performance Information Retrieval System (PPIRS) shall be used as a source of past performance information. The PPIRS automated information system is accessed via the internet at http://www.ppirs.gov. Other sources may also be used, as appropriate.

(4) Cost information. The sharing of cost information with the technical evaluation team, and any limitations on the timing and extent of such sharing, should be addressed during the planning for the source selection. HCAs may establish specific procedural requirements for approving, documenting and/or varying from plans related to such sharing.

(90) Approval for use of contractor personnel as evaluators is addressed in FAR Subpart 37.2 and 5237.204. Such contractor personnel shall not rank or recommend one proposal over another, assign any ratings or numerical scores, or otherwise act in a decision making capacity. Whenever advisory contractor personnel are to be used, a written release shall be obtained from each offeror.

5215.308 Source selection decision.

Advisory bodies, such as Source Selection Advisory Councils, must make a recommendation to the Source Selection Authority and the recommendation shall be in writing.

SUBPART 5215.4—CONTRACT PRICING

5215.403 Obtaining certified cost or pricing data.

5215.403-1 (DFARS & PGI 215.403-1) Prohibition on obtaining certified cost or pricing data (10 U.S.C 2306a and 41 U.S.C. Chapter 35).

(c)(3)(B) An annual report of contracting officer determinations that commercial item exceptions

apply under FAR 15.403-1(b)(3) shall be submitted to DASN(AP) by October 31st of each year via electronic mail address RDAJ&As@navy.mil . Properly identify in the subject line “DFARS 215.403-1(c)(3)(B), COMMERCIAL ITEM EXCEPTIONS. In addition to the information

required by PGI 215.403-1(c)(3)(B), reports to DON are to include award date, contracting officer’s name, and contracting officer’s telephone number.

(c)(4)(A)(2) Senior procurement executive coordination. Submit exceptional case TINA waivers

that exceed $100 million to DASN(AP) for coordination prior to approval via electronic mail

address RDAJ&As@navy.mil . Properly identify in the subject line “DFARS 215.403-1(c)(4)(A), EXCEPTIONAL TINA CASE WAIVERS.

(c)(4)(B) An annual report of Truth in Negotiations Act waivers shall be submitted to

DASN(AP) by October 31st of each year via electronic mail address RDAJ&As@navy.mil. Properly identify in the subject line “DFARS 215.403-1(c)(4)(B), TRUTH IN NEGOTIATIONS ACT WAIVERS ANNUAL REPORT. In addition to the information required by PGI 215.403-

1(c)(4)(B), reports to DON are to include award date, contracting officer’s name, and contracting officer’s telephone number.

5215.404 Proposal analysis.

5215.404-1 (FAR 15.404-1) Proposal analysis techniques.

(d) Cost realism analysis. A price analysis approach where there is adequate price history may also be a suitable and efficient means to evaluate cost realism. The amount of data required will be dependent upon the complexity of the procurement and the data already available to the contracting officer (e.g. information on recent Forward Pricing Rate Agreements (FPRAs)).

5215.406 Documentation.

5215.406-90 Business clearance.

(a) Generally, “pre-negotiation” and “post-negotiation” business clearances are required for each negotiated contract action. Business clearance memoranda (BCM) document the basis for approval of the action, and the basis for determination that the negotiated prices are fair and reasonable.
(b) For competitive acquisitions, the pre-BCM presents a chronology of the acquisition up to the determination of competitive range, and provides the basis for the competitive range decision. The post-BCM continues the chronology to contract award, and provides the basis for the award decision. If award is made without discussions, on the basis of original offers, the pre- and post-BCM may be combined.
(c) For contracts and modifications requiring price negotiations, the pre-BCM demonstrates to the approving official that the Government is ready to enter into negotiations. It addresses salient legal and regulatory requirements, and sets forth the Government’s negotiation objectives. It generally includes a discussion of the bases for the contractor’s proposal and the Government objective, DCAA and other Government pricing recommendations and the analysis done and conclusions reached by the negotiating team. The post-BCM describes the results of negotiations, and documents the basis for determining the negotiated price is fair and reasonable. Using the objective in the pre-BCM as a base, it addresses the reasons for any difference between the initial objective and the final negotiated amount. The pre- and post- BCM together constitute the documentation required by FAR 15.406-3 and DFARS 215.406-3, and should provide all the information required therein. In particular, the BCMs should document the use made of field pricing assistance, and

describe the extent of Government reliance on the contractor’s certified cost or pricing data, if

obtained, in sufficient detail to provide a basis for Government recovery in the event any of the data proves inaccurate, incomplete or not current.

(d) Use the format for business clearance memoranda located at Annex 2, unless an

alternative format has been approved by DASN(AP).

SUBPART 5215.5—PREAWARD, AWARD, AND POSTAWARD NOTIFICATIONS, PROTESTS, AND MISTAKES

5215.505 Preaward debriefing of offerors.

(e)(1) If the evaluation included a cost realism analysis, include information about the results of the analysis as it relates to the offeror being debriefed and its effect on the offeror’s evaluated cost.

5215.506 Postaward debriefing of offerors.
(d)(2) If the evaluation included a cost realism analysis, include information about the results of the analysis as it relates to the offeror being debriefed and its effect on the offeror’s evaluated cost.

SUBPART 5215.6—UNSOLICITED PROPOSALS

5215.606 Agency procedures.

(a) and (b) HCAs are responsible for establishing contact points and procedures for controlling the receipt, evaluation, and timely disposition of unsolicited proposals, consistent with the requirements of FAR Subpart 15.6.

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