AFARS PART 15

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AFARS -- Part 15

Contracting by Negotiation

AAC 96-3
June 23, 1999

15.000 -- Scope of Part

This AFARS Part 15 contains only minimum essential Army policies and procedures. It does not attempt to restate the 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 public documents are generally accessible through the Internet and the Defense Acquisition Deskbook. In particular, the Army Materiel Command's AMC Pamphlet 715-3, "Contracting for Best Value: A Best Practices Guide to Source Selection" is highly recommended.

15.001 -- Definitions

Formal source selection as used in this part means those source selections for high dollar value or complex acquisitions where someone other than the procuring contracting officer is appointed as the source selection authority (SSA).

Subpart 15.1

Source Selection Processes and Techniques

15.101 -- Best Value Continuum.

15.101-1 -- Tradeoff Process.

(a) Use the tradeoff process for all formal source selections, unless the SSA makes a specific, documented decision not to do so. Consider the use of the tradeoff process for all other complex or high dollar value acquisitions whenever appropriate. Conduct source selections for architect-engineering services in accordance with FAR Part 36.

(b)

Subpart 15.2

Solicitation and Receipt of Proposals and Information

15.201 -- Exchanges With Industry Before Receipt of Proposals

15.203 -- Requests for Proposals.

15.204 -- Contract Format

(e) HCAs are authorized to 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. Do not grant any exemptions without coordinating with affected contract administration and payment offices.

15.204-2 -- Part I -- The Schedule

(c) Section C, Description/specifications/statement of work. The SOW, statement of objectives or other description shall 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.

15.207 -- Handling Proposals and Information

(b) The contracting officer or designee, or a senior procurement official from the buying organization shall be present at any briefing or presentation where proprietary or source selection information will be disclosed. See 3.104-5.

Subpart 15.3

Source Selection

15.303 -- Responsibilities

(a)

(b)

(b)(S-90)

(S-90) For formal source selections, the PEO/PM or functional proponent (non-PEO programs) for the acquisitions shall --

(a) Develop and implement the acquisition strategy.

(b) Prepare and obtain approval of the SSP 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) 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 to personnel involved in the source selection.

15.304 -- Evaluation Factors and Significant Subfactors

(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) 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 in the SOW, statement of objectives or other description, as identified in paragraph 4 or 5 of an ORD. MANPRINT may be a separate factor on the same level as "technical," "cost" or "management." Normally, proper integration of MANPRINT considerations requires inclusion of MANPRINT at some subfactor level in each and every area of proposal evaluation as appropriate for the acquisition.

15.305 -- Proposal Evaluation.

(a)

15.306 -- Exchanges With Offerors After Receipt of Proposals

(c) Competitive Range. The SSA shall approve the competitive range determination. Scrutinize the selection of only one competitor as falling within the competitive range to ensure that the evaluation criteria are not too restrictive and the procurement is truly competitive.

Subpart 15.4

Contract Pricing

15.404 -- Proposal Analysis

15.404-1 -- Proposal Analysis Techniques

(b) Price Analysis.

(c) Cost Analysis.

15.406 -- Documentation

15.406-1 -- Prenegotiation Objectives

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

15.406-3 -- Documenting the Negotiation

(a) A sample format is at AFARS 53.9010. Tailor the sample to the needs of the organization and the instant procurement.

15.407 -- Special Cost or Pricing Areas

15.404-4 -- Profit

15.404-76 -- Reporting Profit and Fee Statistics.

Use the Army Weighted Guidelines Software for reporting DD Form 1547 data. Obtain the software and instructions for its use from the addressee in 1.290(b)(6), Attn: WGL.

15.407-4 -- Should-Cost Review

(b) Program should-cost review.

15.490 -- Follow-Up on Contract Audit Reports.

15.490-1 -- Responsibilities.

(a) The Director for Information Management and Assessment, U.S. Army Contracting Support Agency, is the Army's contract audit follow-up official.

(b) PARCs shall perform the functions of the Army's contract audit follow-up official for their respective commands. PARCs shall --

(c) Chiefs of contracting or contract administration offices shall take personal interest in all contract audit reports being tracked by their office and assist contracting officers in the resolution and disposition of those audit recommendations which appear unlikely to be resolved within six months of the date of an audit report.

(d) Contracting officers shall --

15.490-2 -- Tracking of Contract Audit Report Recommendations.

(a) Centrally track all contract audit reports from request for audit through receipt, resolution and disposition. Each contracting or contract administration office, including satellite offices such as GOCOs, shall establish a single entity for requesting, receiving and tracking all audit reports. Provide the activity name, address, attention symbol, point of contact and telephone number of the single entity to the contract administration services office and DCAA regions involved.

(b) Centrally track and report audit report data in accordance with DoDD 7640.2. Maintain a file for each audit report and include in each file the following information:

(c) For reportable audit reports (see 15.490-3), the central files shall also include the following information:

15.490-3 -- Reporting.

The Status Report on Specified Contract Audit Reports (RCS DD-IG(SA)1580), as required by DoDD 7640.2, shall be submitted by each contracting or contract administration office to reach the addressee at 1.290(b)(6), Attn: CAF, not later than 15 April and 15 October of each year. Use the Army Contract Audit Follow-up Automated Program for the status report. Obtain the Program and instructions from the addressee at 1.290(b)(6). Negative reports are required.

15.490-4 -- Overage Audit Review Boards.

(a) Make every effort to resolve audit recommendations within six months of the date of an audit report and dispose of them within 12 months. Each PARC shall establish and chair an Overage Audit Review Board (the Board) to review the status of open audits reported as overage or unresolved on the Status Report on Specified Contract Audit Reports.

(b) If the PARC determines that it is not practical to have the contracting officer attend the Board meeting because of distance or other reasons, the PARC may authorize a local board chaired by the PARC's designee. The local board shall follow the guidance in (a) and shall submit its report to the PARC in time for the PARC to review, approve and incorporate it into the PARC's submittal to HQDA.

(c) Upon completion of its review, but not later than 30 November and 31 May, the Overage Audit Review Board shall submit to the addressee in 1.290(b)(6), under a summary cover letter from the PARC, a detailed plan of action for the resolution and disposition of each audit report in the three major categories listed in (1).

Subpart 15.6

Unsolicited Proposals

15.606 -- 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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