AFARS PART 5115

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Subpart 5115.1 -- Source Selection Processes and Techniques

Subpart 5115.2 -- Solicitation and Receipt of Proposals and Information

Subpart 5115.6 -- Unsolicited Proposals


AFARS -- Part 5115

Contracting by Negotiation


5115.000 -- Scope of Part

This Part contains only minimum essential policies and procedures. It does not attempt to restate polices contained in the FAR and DFARS or to duplicate the many excellent public documents that provide more detailed procedures and “how-to” information. The Army Source Selection Guide contains detailed guidance on the source selection process.

5115.001 -- Definitions

Formal source selection means contractor source selections for high dollar value or complex acquisitions where someone other than the contracting officer is appointed the Source Selection Authority (SSA).

Subpart 5115.1 -- Source Selection Processes and Techniques

5115.101 -- Best Value Continuum.

In using the best value approach, the Army seeks to award to an offeror who gives the greatest confidence that it will best meet the requirements affordably. This may result in an award being made to a higher rated, higher priced offeror where the decision is consistent with the solicitation’s evaluation factors and the Source Selection Authority (SSA) reasonably determines that the technical superiority and/or overall business approach and/or superior past performance of the higher priced offeror outweighs the cost difference. The SSA, independently exercising prudent business judgment, arrives at a Source Selection Decision based on the offeror(s) who proffers the best value to the Government. The SSA shall not receive a recommendation from any individual or body as to whom shall receive the award and additionally shall not receive a rank order or order of merit list pertaining to the offers being evaluated.

If threshold and objective performance requirements are identified in the Request for Proposals (RFP), the Army must communicate to offerors (a) how evaluation of objective performance requirements will be accomplished and (b) to the extent that performance above the threshold requirement is achieved, how the offeror will be credited for such performance. The Source Selection Evaluation Board, in conjunction with the SSA, and consistent with the solicitation’s hierarchy of Factors, Subfactors, and Elements, will review each offeror’s proposed achievement of objective requirements and make as informed a judgment as possible, based on the data available, as to whether the proposal to meet objective requirements is worth the Government’s approximation of the delta price/cost to achieve the objective requirement. The SSA, in the Source Selection Decision Memorandum, and consistent with the solicitation’s hierarchy of Factors, Subfactors, and Elements, shall recognize and appropriately consider, in the Source Selection Decision Memorandum, the extent of the performance benefits afforded the Department of the Army by the level of objective performance expected to be achieved by the offeror.

5115.101-1 -- Tradeoff Process.

Subpart 5115.2 -- Solicitation and Receipt of Proposals and Information

5115.201 -- Exchanges With Industry Before Receipt of Proposals

(c)

5115.204 -- Contract Format

(e) HCAs may exempt individual contracts from the use of a uniform contract format and may delegate this authority no lower than to the PARC. The Deputy Assistant Secretary of the Army (Procurement) is authorized to exempt classes of contracts. Exemptions should not be granted without coordinating with affected contract administration and payment offices.

5115.204-2 -- Part I -- The Schedule

(c) Section C, Description/Specifications/Statement of Work. The SOW, statement of objectives, or other description for major system acquisitions must reflect all pertinent MANPRINT considerations from the Operational Requirements Document (ORD) and Mission Needs Statement (MNS). Also include any enhanced considerations resulting from market research and contributions from Integrated Product Teams. Include in the SOW or other description as specific, stand-alone functional requirements important MANPRINT issues or opportunities identified in paragraph 4 or 5 of the ORD.

5115.303 -- Responsibilities

(b)

5115.304 -- Evaluation Factors and Significant Subfactors

(b)(2) It is Army policy to establish the absolute minimum number of factors necessary for evaluation of proposals. Source selection factors may be subdivided into subfactors, that, in rare instances, may be further subdivided into elements if needed. Evaluation factors and, if used, subfactors and elements are the basis for assessing each offeror's ability to meet the Army's needs. They are the uniform baseline against which each offeror's proposal is compared to determine the proposal(s) which represent the best value to the Government. Factors and Subfactors must be limited to those which (a) are expected to surface real and measurable discriminators between offerors, and (b) have value enough to warrant the payment of a meaningful cost/price premium to obtain the measured discrimination. Evaluation factors, subfactors, and elements:

(d) When the Government intends to evaluate the cost of future production or performance beyond the instant contract, and to include these costs as part of the basis of selection and award, clearly specify the evaluation procedures for such costs in the solicitation. Do not use Government estimates of future or life cycle costs in an evaluation unless the Government’s procedures and methodologies for developing the costs are specified in the solicitation.

(S-90) To the extent that measurable manpower and personnel integration (MANPRINT) discriminators, of value to the Government, are identified, evaluate MANPRINT in source selections for major systems, designated acquisition programs and, when appropriate, other acquisition programs. Evaluate MANPRINT issues or opportunities that are specific, stand-alone functional requirements as identified in paragraph 4 or 5 of an ORD.

5115.305 -- Proposal Evaluation.

(a)

5115.306 -- Exchanges With Offerors After Receipt of Proposals

All exchanges with offerors after receipt of proposals must clearly identify the types of exchanges, i.e., clarifications, communications or discussions.

(c) Competitive Range. The SSA must approve the competitive range determination.

5115.308 Source selection decision

A source selection decision document must be prepared for all source selections and reflect the SSA's integrated assessment and decision. The document must be the single summary document supporting selection of the best value proposal consistent with the stated evaluation criteria. It must clearly explain the decision and documents the reasoning used by the SSA to reach a decision. The document should be releasable to the General Accounting Office and others authorized to receive proprietary and source selection information. When releasing a copy to offerors or to anyone not authorized to receive proprietary and source selection information, redacted material should be limited to that which is proprietary and that which must continue to be protected as source selection information.

5115.404-4 -- Profit

5115.404-76 -- Reporting Profit and Fee Statistics.

Use the Army Weighted Guidelines Software for reporting DD Form 1547 data. The software and instructions for its use can be acquired from the addressee in 5101.290(b)(6), Attn: WGL.

5115.406 -- Documentation

5115.406-1 -- Prenegotiation Objectives

(b) Document prenegotiation objectives in a Prenegotiation Memorandum which sets forth the significant details of the proposed contracting action and the course the contracting officer proposes to pursue. Prepare, review, and approve Prenegotiation Memoranda in accordance with the activity’s business clearance procedures.

For sole source actions, the Prenegotiation Memorandum documents compliance with law, regulations and policy and also becomes the record documenting the exercise of good business judgment. The Prenegotiation Memorandum shows the contractor’s methodology and how he developed his proposal position (to the extent it can be determined from the contractor’s proposal and fact finding efforts), how the price/technical/audit reviewers developed their recommendations, and what the negotiator did in developing an independent pre-negotiation position considering the pricing, audit, and technical analyses and recommendations. An understanding of the development of each position is important in order to adequately prepare for negotiations. The Director, Defense Procurement’s web site (http://www.acq.osd.mil/dp/cpf/) has posted on it the DoD Contract Pricing Reference Guides which discuss in depth pricing techniques and factors that should be considered when developing the negotiation position.

For competitive negotiated acquisitions using formal source selection procedures, the Prenegotiation Memeorandum should include the source selection plan, as well as section “M” of the solicitation. It should discuss the evaluation criteria and the basis for award contained in the solicitation, set forth a summary schedule of offerors’ prices and the technical and cost evaluations. It should also include a determination and supporting discussion of offerors determined to be within and outside the competitive range and a summary of the technical and cost deficiencies to be discussed with offerors selected to participate in the discussions.

A Prenegotiation Memorandum for a competitive acquisition is largely a review of the basis for source selection to ensure that full documentation and support exist to withstand any subsequent protest or allegation that the price was not fair and reasonable.

5115.406-3—Documenting the Negotiation

(a) Both the prenegotiation objectives and the results of the negotiation must be documented in sufficient detail to clearly set forth all significant aspects of the contract action.

5115.407-4 -- Should-Cost Review

(b) Program should-cost review.

Subpart 5115.6 -- Unsolicited Proposals

5115.606 -- Agency Procedures

Army procedures pertaining to unsolicited proposals are found in Appendix XVIII of DA Pamphlet 70-3, Army Acquisition Procedures. DA PAM 70-3 may be found in the Library section of the Homepage of the Assistant Secretary of the Army (Acquisition, Logistics and Technology) and in the Defense Acquisition Deskbook.

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