TABLE OF CONTENTS
PART 1--INTRODUCTION
AA-100 Purpose.
AA-101 Definitions.
AA-102 Policies.
AA-103 Organization.
AA-104 Conflicts of Interest.
AA-105 Source Selection Information.
AA-106 Source Selection Decision.
AA-107 Lessons Learned Reports.
PART 2--RESPONSIBILITIES
AA-200 Army Acquisition Executive.
AA-201 Deputy Assistant Secretary of the Army for Procurement.
AA-202 Head of the Contracting Activity.
AA-203 Head of the Contracting Activity Subordinate to the HQ, AMC.
AA-204 Program Executive Officer/Project Manager or Functional Proponent.
AA-205 Source Selection Authority.
AA-206 Contracting Officer.
AA-207 Attorney Advisor.
PART 3--SOURCE SELECTION ADVISORY COUNCIL
AA-300 Establishment.
AA-301 Functions.
AA-302 Composition.
AA-303 Direction and Control.
PART 4--SOURCE SELECTION EVALUATION BOARD
AA-400 Establishment.
AA-401 Functions.
AA-402 Composition.
AA-403 Structure.
AA-404 Direction and Control.
PART 5--SOURCE SELECTION ELEMENT
AA-500 Concept.
AA-501 Administrative Functions.
AA-502 Technical Functions.
PART 1--INTRODUCTION
(a) This Appendix establishes policy, procedures, documentation and review requirements for use when formal source selection procedures are used for competitive, negotiated acquisitions. This Appendix implements FAR 15.612.
(b) Detailed guidance on planning and conducting formal source selections is contained in AFARS Manual No. 1, "Formal Source Selection Procedures for Army Systems Acquisition."
As used in this Appendix, the following terms shall have the meaning given:
"Acquisition strategy" means a conceptual framework for conducting materiel acquisition, encompassing the broad concepts and objectives which direct and control the overall development, production, and deployment of a materiel system. It evolves in parallel with the system's maturation. Acquisition strategy must be stable enough to provide continuity, but dynamic enough to accommodate change. (For services, the acquisition plan (see FAR 7.1) provides the conceptual framework for conducting the acquisition.)
"Formal source selection" means a structured, compartmented process for evaluating proposals and selecting the source(s) for contract award. The source selection organization shall always be structured to include at least two, and usually three, entities (see AA-103) to accomplish proposal evaluation, comparative analysis and source selection.
"Proposal Evaluation" means an integrated assessment, using evaluation factors, of each offeror's ability to satisfy the requirements of the solicitation. Proposal evaluation is the process of examining the merits of each proposal against the factors identified in the solicitation and rating each proposal based on an assessment of its merit.
"Rating" means the application of a scale of numbers, words, or colors, etc., to denote the degree to which the proposal has met the minimum requirements of the solicitation.
"Source Selection Advisory Council (SSAC)" means a group of senior Government personnel with the requisite expertise to advise the Source Selection Authority on an acquisition.
"Source Selection Authority (SSA)" means the official designated to direct the source selection process and make the source selection decision.
"Source Selection Element (SSE)" means an organizational unit that may be established in contracting activities when formal source selections are conducted on a regular basis.
"Source Selection Evaluation Board (SSEB)" means a group of Government personnel representing the various functional and technical disciplines relevant to the acquisition that conducts a comprehensive evaluation of each offeror's proposal.
"Source Selection Plan (SSP)" means a plan, approved by the SSA, which describes the source selection organization, conduct of the evaluation and analysis of proposals, and selection of the source(s) for award.
"Source selection process" means the process that leads to the selection of a contractor that can best meet the Government's needs as described in the solicitation. It ensures impartial, equitable and comprehensive evaluation of each offeror's proposal.
"Weighting" means the techniques used to assign the percentage or numerical values to various levels of the evaluation factors to establish their relative importance.
(a) Formal source selection procedures shall be used for all competitive, negotiated acquisitions when the SSA is other than the contracting officer. This includes all competitive, negotiated acquisitions managed in accordance with DoDD 5000.1, Defense Acquisition; DoDI 5000.2, Defense Acquisition Management Policies and Procedures; AR 25-1, The Army Information Resources Management Program; and AR 25-3, Army Life Cycle Management of Information Systems.
(b) The procedures employed for source selections are flexible and should be tailored to the requirements of the individual acquisition to minimize the cost of the process to Government and industry. Formal SSACs may not be required for some acquisitions.
(c) The SSA shall be presented with sufficiently detailed information on each of the competing offerors and their proposals to make an objective selection decision.
(d) The rating system used to evaluate and analyze proposals shall be in accordance with DoDI 5000.2, Part X, Section B and shall be described in the SSP for approval by the SSA.
Formal source selection requires creation of a separate source selection organization and management chain of command--SSA, SSAC if deemed necessary, and SSEB--for each acquisition. The organization must be structured to ensure continuity and to provide for active, continuing involvement of appropriate contracting, technical, logistics, legal, cost, small business and other functional staff management expertise.
(a) Any person receiving information or data on source selection activities shall comply with AR 380-5, Department of the Army Information Security Program, and DoD 5500.7-R.
(b) All Government personnel involved in the source selection process must avoid actual or perceived conflicts of interest. Any person whose participation in the source selection process could raise questions regarding actual, potential or perceived conflicts of interest shall be disqualified.
(c) All contact with prospective contractors concerning the source selection evaluation must be avoided, except for personnel specifically authorized by the contracting officer to participate in discussions.
AA-105 Source Selection Information.
Source selection information shall be controlled in accordance with 3.104-5, FAR 3.104-5, and DFARS 203.104-5.
AA-106 Source Selection Decision.
(a) The rationale for the source selection decision (SSD) shall be set forth in an SSD document. The SSD document shall be a stand-alone document fully justifying the SSA's decision. It shall address each evaluation factor, how the selected offer fared with regard to each factor and why this offer was selected by application of the evaluation standards. This discussion should generally be limited to the first-tier evaluation factors, but may go into subtiers to the extent necessary to adequately document the decision.
(b) The SSD document may be releasable and can be expected to be a key document in any litigation challenging the award of resulting contracts. When incorporating information and other documents into the SSD document by reference, take care to avoid the risk of releasing otherwise exempt information with the SSD document under the Freedom of Information Act.
(c) The SSD document shall be reviewed by the attorney advisor prior to signature by the SSA.
(d) Any disclosure of the source selection decision to an individual outside the SSEB or SSAC prior to award, other than to those individuals specified in 3.104-5 and AA-205(k) and (m), requires the express written consent of the Army Acquisition Executive (AAE).
AA-107 Lessons Learned Reports.
(a) Following contract award, the SSA shall ensure publication of a lessons learned report describing the experience and results of the source selection process. This report should be limited to pertinent positive or negative issues that may benefit future source selection actions and planning.
(b) The lessons learned report shall be forwarded directly to the addressee in 1.290(b)(2) within eight weeks of the announcement of the source selection decision. Concurrent distribution may be made in accordance with MACOM acquisition instructions. If the source selection decision is protested, the lessons learned report shall be prepared and submitted within four weeks of the resolution of the protest. The lessons learned report shall be accompanied by Section L, Instructions, conditions, and notices to offerors or quoters, and Section M, Evaluation factors for award, of the solicitation. (See FAR 15.406-5(b) and (c).)
PART 2--RESPONSIBILITIES
AA-200 Army Acquisition Executive.
See 15.612(b)(1)(A).
AA-201 Deputy Assistant Secretary of the Army for Procurement.
See 15.612(b)(1)(B).
AA-202 Head of the Contracting Activity.
See 15.612(b)(1)(C).
AA-203 Head of the Contracting Activity Subordinate to the HQ, AMC.
See 15.612(b)(1)(D).
AA-204 Program Executive Officer/Project Manager or Functional Proponent.
The PEO/Project Manager (PM) or functional proponent (non-PEO programs) for the acquisition shall--
(a) Develop and implement the acquisition strategy;
(b) Prepare the SSP and obtain approval of the plan before issuing the solicitation;
(c) Coordinate with the HCA to recommend an official as the SSA, when authority to appoint the SSA has been delegated by the AAE;
(d) Coordinate the SSP with the contracting officer and attorney advisor(s) to the source selection participants;
(e) Ensure that source selection personnel understand the item to be acquired, operational requirements, and the technical and other problems that will require solution by the successful offeror;
(f) Perform the duties assigned by the SSA;
(g) Provide project management office personnel as advisors or evaluators to the SSEB or SSAC; and
(h) Provide necessary funds for salaries, overtime, temporary duty travel and other expenses of the source selection and provide office space, office and administrative equipment, clerical support, and other necessary administrative support for the SSAC and SSEB.
AA-205 Source Selection Authority.
The SSA is responsible for the proper and efficient conduct of the entire source selection process encompassing proposal solicitation, evaluation, selection and contract award. The SSA shall select the source(s) for award and approve execution of the contract(s). The SSA shall also--
(a) Review and approve the SSP, including any special instructions or guidance regarding release of weights, solicitation provisions and objectives;
(b) Review the solicitation prior to release to ensure that it properly reflects the need and contains requirements for information sufficient for evaluation, the relative importance or weighting of evaluation factors, and the basis for the source selection decision (basis for award);
(c) Ensure that evaluation of proposals is consistent with the SSP and the requirements of the solicitation as well as the policies of DoDI 5000.2, Part X, Section B and the Army;
(d) Determine the source selection organizational structure and appoint qualified personnel to the SSAC and the positions of SSEB chairperson and deputy chairperson;
(e) Define the level of involvement of the PEO or functional proponent personnel in the source selection process;
(f) Provide the SSAC and the SSEB with guidance and special instructions for conducting the evaluation and selection process;
(g) Approve the contracting officer's competitive range determination to exclude offerors from the competitive range at any point in the evaluation and selection process;
(h) Approve requests for second or subsequent best and final offers (BAFOs);
(i) Ensure conflicts of interest or the appearance of conflicts do not exist;
(j) Ensure that there is no premature or unauthorized disclosure of proprietary or source selection information;
(k) Brief the DASA(P) and the Deputy General Counsel (Acquisition) prior to briefing the AAE;
(l) Make the final source selection decision and document the supporting rationale before a contract award is made or announced; and
(m) Inform the USD(A&T) of the outcome of the source selection after selection, but before public announcement, for Category I and II acquisitions, including Class I information systems acquisitions and, if required by the AAE, Class II information systems acquisitions.
(n) Ensure that a lessons learned report is submitted. (See AA-107).
The contracting officer shall--
(a) Ensure that the SSP meets the requirements of the FAR, DFARS, and AFARS;
(b) Serve as the focal point for any communications between the Government and potential offerors; and
(c) Oversee preparation of solicitations and contracts, preparation of the business clearance memoranda, award of the contract and any other requirements specified in acquisition regulations.
The attorney advisor is responsible for providing legal advice, including advice on compliance with procurement integrity rules, to the source selection participants.
PART 3--SOURCE SELECTION ADVISORY COUNCIL
If required by the SSA, the SSAC shall be established as an ad hoc board.
The SSAC shall advise the SSA and may be required to prepare a comparative analysis of the evaluation results.
The SSAC shall be staffed with senior Government personnel who possess broad experience in such fields as systems development, systems engineering, manufacturing management and control, quality assurance, operational requirements, finance, logistics, training, law, and contracting. The PEO/PM may also participate. For the programs or projects for which the AAE is the SSA, the chairperson and the senior SSAC member from each Army organization represented should be a general officer or a member of the Senior Executive Service. Other SSACs shall normally be staffed at the appropriate level below that of the SSA. Advisors may include Government contracting, legal, engineering or scientific personnel with the recommendation of the SSAC and approval of the SSA. The use of contractor personnel to advise the SSAC is governed by DoDI 5000.2, Part X, Section B, paragraph 3g(3)(c). The total membership will be dictated by the complexity of the individual acquisition. There shall be no observers.
The SSAC shall report and be subject to the tasking authority of the SSA. The SSAC and its individual members shall be independent of existing organizations. The chairperson of the SSAC shall--
(a) Ensure that personnel resources and time devoted to the source selection are not excessive in relation to the complexity of the program;
(b) Review and approve the evaluation factors and standards;
(c) Determine the necessary weights of the evaluation factors;
(d) To preclude intentional or unintentional bias in proposals or evaluations, ensure that when the SSAC applies precise numerical weights, those weights are not disclosed either to the offerors or to the SSEB unless release of the weights has been approved by the SSA;
(e) Approve membership of the SSEB;
(f) Ensure that the SSEB is appropriately trained (see AA-404(b)(2));
(g) Review and approve the recommendations of review groups, and authorize the release of the solicitation;
(h) Review and provide comments to the SSA on the contracting officer's determination to exclude offerors from the competitive range at any point in the selection process;
(i) Prepare a comparative analysis of the SSEB evaluation results and submit it to the SSA;
(j) Provide briefings and consultations, as requested by the SSA;
(k) If requested by the SSA, recommend the source(s);
(l) If requested by the SSA, prepare the SSD document for the SSA's signature.
PART 4--SOURCE SELECTION EVALUATION BOARD
The SSEB shall be established as an ad hoc board.
The SSEB shall ensure a comprehensive evaluation of each offeror's proposal in accordance with the SSP and the evaluation factors contained in the solicitation and produce a summary of facts and findings required in the further conduct of the evaluation process.
(a) The SSEB shall be composed of personnel representing the various functional and technical disciplines relevant to the acquisition. The grade level of the chairperson and members will be at a level commensurate with the complexity of the acquisition. The SSAC contracting and legal advisors can also be the SSEB advisors. The SSEB may have Government engineering and technical advisors. The use of contractor personnel to advise the SSEB is governed by DoDI 5000.2, Part X, Section B, paragraph 3g(3)(c). There shall be no observers.
(b) The membership of the SSEB shall consist of the chairperson of the SSEB, deputy chairperson, if one is required, and the chairpersons of committees under the SSEB.
(a) The structure of the SSEB should be consistent with the evaluation factors established in the SSP and solicitation.
(b) There shall always be a separate cost evaluation committee.
(c) When MANPRINT is an acquisition consideration, the SSEB shall be structured to establish and maintain MANPRINT considerations as a visible part of the process. Normally, there will be a MANPRINT entity at the first level of the organization, and MANPRINT expertise shall be applied throughout the organization where appropriate.
(a) The SSEB shall report to the SSAC and, as directed, to the SSA. The SSEB and its individual members shall be independent of organizations other than the source selection organization. The SSEB shall be tasked by the SSAC and by the SSA through the SSAC.
(b) The chairperson of the SSEB shall--
(1) Prescribe the evaluation and rating procedures and the methods by which an overall assessment is achieved. The rating system shall be structured to identify the significant strengths, weaknesses, and risks associated with each offer to make it easier to distinguish significant differences between offers;
(2) Ensure that all SSEB members are appropriately trained prior to receipt of proposals. The training shall include the source selection process and roles of the participants, procurement integrity, the requirement, Sections L and M of the solicitation, the evaluation plan and documentation requirements.
(3) Ensure that the SSEB members understand the factors and the standards for the evaluation of proposals so that there is a uniform approach in the rating effort;
(4) Respond to the guidance and special instructions of the SSA and the SSAC chairperson;
(5) Provide briefings and consultations, as required by the SSA and chairperson of the SSAC;
(6) Ensure the adequacy and overall quality of the narrative justification for the evaluation results;
(7) Require the assigned members to attend the meetings and conferences of the SSEB, assign work necessary to accomplish its mission, and relieve members from assignments in the event of a demonstrated emergency or other just cause;
(8) Plan for and supervise the security requirements of the SSEB and work site as well as the requirements to protect defense and other sensitive information (e.g., classified, source selection, proprietary);
(9) Oversee the briefing of new members regarding their duties;
(10) Establish the agenda and the schedule for SSEB and committee meetings;
(11) Coordinate the work of committees so that the interface and trade-off possibilities among schedule, cost and technical performance are adequately evaluated;
(12) Ensure that the missions of the principal committees and their subcommittees are clearly expressed, using written charters when needed;
(13) Obtain clarification of factors and rating methods from the SSAC chairperson as necessary;
(14) Isolate policy issues and major questions requiring a decision by the SSAC and the SSA; (15) Provide the contracting officer a list of errors, omissions, needed clarifications, deficiencies and other items for negotiation;
(16) Supervise the preparation of documentation to support evaluation findings, such as the deliberations and conclusions of SSEB meetings to assure it is clear, logical and concise.
(17) Transmit the appropriate SSEB records to the contracting officer responsible for making the awards; and
(18) Prepare the lessons learned report, and obtain the SSA approval prior to releasing the report.
PART 5--SOURCE SELECTION ELEMENT
An SSE institutionalizes the source selection corporate memory. This optional element can contribute to more efficient source selections. It can also provide administrative and technical assistance.
AA-501 Administrative Functions.
Administrative functions should include the following:
(a) Identify, obtain and schedule source selection facilities.
(b) Provide conference rooms and audio-visual equipment.
(c) Provide office and administrative equipment.
(d) Provide normal expendable supplies.
(e) Provide badges to be worn by all source selection personnel.
(f) Assist in developing experience, educational, and other relevant qualifications of source selection personnel.
(g) Develop and maintain performance evaluation standards.
(h) Maintain a database of past source selection personnel.
(i) Identify local facilities, equipment, transportation, housing, supplies, and equipment cost and availability.
(j) Assist in budget determinations.
(k) Maintain a lessons learned database.
(l) Develop and maintain SSEB operating procedures.
Technical functions are as follows:
(a) Advise all source selection levels about the proper planning, organization and conduct of the source selection process.
(b) Develop policy for implementing the source selection process at the contracting activity.
(c) Provide comments on and implementation of higher-level source selection policy.
(d) Assist in the review of acquisition plans, synopses, SSPs, solicitations, reports, briefings and SSD documents.
(e) Monitor progress of source selections, and assist in development of lessons learned.
(f) Maintain records and regulations on source selection, security and contractors' relevant present and past performance.
(g) Develop and maintain a source selection information guide.
(h) Provide training for source selection personnel.