PART 5217 SPECIAL CONTRACTING METHODS
SUBPART 5217.1—MULTI-YEAR CONTRACTING
(b) HCAs have authority to award multi-year contracts, subject to restrictions contained in the FAR and DFARS. For multi-year procurements authorized by law, HCAs shall make the required determinations.
5217.170 (DFARS 217.170) General.
(c) HCAs shall submit to DASN(AP), via RDAJ&As@navy.mil, the required congressional notification for termination of any multiyear contract following the format prescribed in NMCARS 5205.303. Email notifications are required to be submitted at least 20 days before termination. Include in the subject line “Multiyear Contract Termination - Congressional Notification.”
(e)(4) HCAs shall submit to DASN(AP), via RDAJ&As@navy.mil, all required congressional notifications set forth in DFARS 217.170(e)(1) following the format prescribed in NMCARS 5205.303 for any of the following notifications:
- An unfunded contingent liability in excess of $20M;
- Any economic order quantity procurement in excess of $20M in any one year of the contract; or,
- A contract for advance procurement leading to a multiyear contract that employs economic order quantity procurement in excess of $20 million in any one year of the contract.
To meet the congressional reporting requirements of 217.170(e)(1)(iv) for contracts with a cancellation ceiling in excess of $100M, submit the notification following the format prescribed in NMCARS 5205.303 and include the additional requirements delineated in 217.170(e)(5)(i).
Notifications are required at least 45 days before contract award. Include in the email subject line “Multiyear Contract - Congressional Notification.”
5217.171 (DFARS 217.171) Multiyear contracts for services.
(c) HCAs are delegated the authority, without power of redelegation, to make the written determination required by DFARS 217.171(c).
5217.172 (DFARS 217.172) Multiyear contracts for supplies.
(b) HCAs are delegated the authority, without power of redelegation, to make the determinations required by FAR 17.105-1 and DFARS 217.172(b).
(g) HCAs shall ensure the conditions required in DFARS 217.172(g) are satisfied prior to entering into a contract.
(2)(viii) When conditions required are satisfied, HCAs shall submit a copy of the required written Congressional notification prescribed in NMCARS 5205.303 and include the additional notification requirements in 217.172(g)(2)(viii)(A) (1) to (3). Notifications will be sent to DASN(AP) via electronic mail address RDAJ&As@navy.mil and are required at least 45 days prior to contract award. Include in the email subject line “Multiyear Contract - Congressional Notification.” Contracting officers shall verify that the required Congressional notification has been made and the time limit for award has been satisfied before executing contract award.
(90) HCAs shall submit a copy of the determinations and findings required by 217.172(e)(2) to RDAJ&A@navy.mil prior to entering into a contract.
5217.174 (DFARS 217.174) Multiyear contracts for electricity from renewable energy sources.
(a) Only COMNAVFACENGCOM has the authority to award contracts pursuant to this section.
(e) Approval for use of contract terms in excess of the limitations specified in FAR 17.204(e) must be supported by valid justifications, documented in writing, and obtained prior to solicitation. Approval shall be at a level not lower than the CCO. A determination to establish an ordering period in excess of 10 years, in accordance with DFARS 217.204(e)(i)(C), shall be executed by ASN(RDA). Submit such requests via DASN(AP).
(S-90)(a) To promote competition, the optimum maximum recommended period of performance is three years for knowledge-based services (KBS), and five years for all other services. KBS multiple-award indefinite-delivery, indefinite quantity (IDIQ) contracts may be awarded with up to a five year period of performance when on-ramp provisions are included to promote competition. KBS contracts with Federally Funded Research and Development Centers (FFRDCs) and University Affiliated Research Centers (UARCs) are exempt from the three year term limit.
(b) While the limits represent the business standard, there can be valid reasons for choosing longer contract periods. When a longer period is deemed appropriate by the contracting officer, approval thresholds are:
(1) Less than $50 million: CCO
(2) $50 million to, and including, $100 million: HCA
(3) Greater than $100 million: DASN(AP) Senior Services Manager via email
seniorservicesmanager.fct@navy.mil with the subject line “KBS Term Length Waiver Request.”
(a) Approval authorities shall submit reports on term length waiver approvals on a quarterly basis, no later than the 15th day of the month following the end of the quarter, to DASN(AP) Senior Services Manager via email seniorservicesmanager.fct@navy.mil with the subject line “KBS Term Length Waiver Approvals”.
SUBPART 5217.5—INTERAGENCY ACQUISITIONS
(c) Prior to release of the solicitation and following coordination with the Director, Office of Small Business Programs (OSBP), HCAs shall submit Part 1 of the BCA to DASN(AP) via email RDAJ&As@navy.mil with the subject line “NMCARS 5217.502-1: Business Case Analysis (BCA) for [Insert the name of the corresponding situation above]. If the acquisition involves Information Technology, coordination is also required with DON Chief Information Officer (DON CIO) as well as OSBP prior to submission to DASN (AP).
(c)(3) Agency head designations. Except for the special circumstances listed in (S-90(i)) below, and the limitations specified in (S-90(ii)) below, the agency head’s designees for approving D&Fs
for interagency acquisitions are:
DASN(AP)
Chief of Naval Research
Commander, Marine Corps Systems Command
Commander, Military Sealift Command
Commander, Naval Air Systems Command
Commander, Naval Facilities Engineering Command
Commander, Naval Sea Systems Command
Commander, Naval Supply Systems Command
Commander, Space and Naval Warfare Systems Command
Director, Strategic Systems Programs
Deputy Commandant for Installations and Logistics, Headquarters, Marine Corps
(A) For Economy Act orders that require no contracting action on the part of the servicing agency, delegation of this authority to the appropriate level within the organization/claimancy is encouraged.
(B) For Economy Act orders to non-DoD activities that require contracting action on the part of the servicing agency, this authority may not be further delegated except to:
(1) Affiliated PEOs;
(2) Affiliated DRPMs;
(3) Any other SES/Flag/General Officer within the HCA’s Command structure; and/or
(4) Commanding Officers of subordinate activities provided the approval authority does not exceed the activity’s level of contracting authority.
(S-90) Special Circumstances and Limitations
(i) Special Circumstances. Approval authority for Economy Act orders that require a contracting action on the part of the Department of Transportation’s Volpe Laboratories is not delegated. The agency head’s designee to approve D&Fs for these Economy Act orders is DASN(AP). For Economy Act orders that require no contracting action on the part of the Department of Transportation’s Volpe’s Laboratories, delegation of this authority to the appropriate level within the organization/claimancy is encouraged. Additionally, copies of all orders with the Department of Energy (DoE) and its federally funded Research and Development Centers shall be provided to DASN(AP) within two weeks after issuance.
(ii) Limitations. Approval authority of D&Fs for Interagency Economy Act orders that will result in a contracting action executed by an agency not subject to the FAR (e.g. the Central Intelligence Agency, Tennessee Valley Authority, United States Postal Service, Federal Aviation Administration, and Library of Congress), is limited to the NSPE.
(90) Documentation. Files of approved orders, including supporting documentation, shall be maintained at a single location within each activity delegated approval authority.
(91) Exceptions. The following are examples of acquisitions that do not require Economy Act D&Fs:
(a) Interagency acquisitions from the General Services Administration conducted under the authority of 40 U.S.C. 757, Information Technology Fund;
(b) Acquisitions conducted pursuant to DFARS Subpart 208.70, “Coordinated Acquisition”;
(c) Acquisitions conducted under the authority of the Project Order Act,
41 U.S.C. Section 23; and
(d) Interservice support agreements between DoD activities that comply with DoD Instruction 4000.19, “Interservice and Intragovernmental Support.”
(e) Interagency acquisitions from the Library of Congress conducted under the authority of Section 103 of P.L. 106-481 (2 U.S.C. 182c), FEDLINK Revolving Fund.
SUBPART 5217.7— INTERAGENCY ACQUISITIONS: ACQUISITIONS BY NONDEFENSE AGENCIES ON BEHALF OF THE DEPARTMENT OF DEFENSE
(c) Submit nondefense agency certifications of compliance to DPAP within 20 days of the beginning of the fiscal year through DASN(AP) via email RDAJ&As@navy.mil with the subject line “5217.703 - Annual Nondefense Agency Certifications Report”.
SUBPART 5217.74—UNDEFINITIZED CONTRACT ACTIONS
5217.7402 (DFARS 217.7402) Exceptions.
(b) Submit the required advance notification to the Director, Defense Procurement and Acquisition Policy through DASN(AP) via electronic mail address RDAJ&As@navy.mil. Properly identify in the subject line of the email “DFARS 217.7402(b)--Advance notice of impracticable UCA policy adherence.”
5217.7404-5 (DFARS 217.7404-5) Exceptions.
(b) Submit requests for waivers of limitations on UCAs as set forth in DFARS 217.7404-2,
217.7404-3, and 217.7404-4 to DASN(AP) via electronic mail address RDAJ&As@navy.mil.
Include in the subject line of the email “Waiver of limitations on UCAs—[insert applicable DFARS cite].”
5217.7405 (DFARS 217.7405) Plans and Reports.
(a)(2) HCAs shall submit by April 15 and October 15 a consolidated undefinitized
contract action (UCA) report, identifying each UCA and unpriced change order with an estimated
value of more than $5 million.
(b) Submit the required UCA report to DASN(AP) via electronic mail address
RDAJ&As@navy.mil in the format prescribed at Annex 6. Properly identify in the subject line of both the email and the reports “UCA MANAGEMENT REPORT” followed by the applicable reporting period/year (e.g. UCA MANAGEMENT REPORT: April 15, 2010).
5217.7405 (PGI 217.7405) Plans and reports.
(1) Submit a copy of the weighted guidelines for each definitized UCA during the reporting period with a value of $100 million or more. If there is no record of weighted guidelines (e.g., not required for a cost-plus-award-fee contract per DFARS 215.404-74), then submit alternative documentation that addresses appropriate recognition of the contractor’s reduced cost risk during the undefinitized performance period. Submit the required information in accordance with 5217.7405(b).
SUBPART 5217.78—CONTRACTS OR DELIVERY ORDERS ISSUED BY A NON-DOD AGENCY
5217.7802 (DFARS 217.7802) Policy.
(b)(i)DON review/approval requirements.
(A) Assisted acquisitions.
(1) ASN(RDA) is the decision authority for assisted acquisitions exceeding $500,000,000.
(2) DASN(AP) is the decision authority for assisted acquisitions exceeding $50,000,000.
(3) The Requiring Organization Commander/Commanding Officer is the decision authority for assisted acquisitions at or below $50,000,000. This authority may be delegated; but, for requirements over $5,000,000, decision authority may only be delegated to an official in the Requiring Organization who is a Flag or General Officer; a member of the Senior Executive Service; or, for a requirement arising from a claimant activity without Flag/General Officer/SES, the commanding officer of that activity.
(B) Direct acquisitions. The business clearance approval official is the decision authority for direct acquisitions.