PART 1806

**COMPETITION REQUIREMENTS**

# TABLE OF CONTENTS

**SUBPART [1806.2](#ole_link2) FULL AND OPEN COMPETITION AFTER
EXCLUSION**

**OF SOURCES**

1806.202 Establishing or maintaining alternative sources.

1806.202-70 Formats.

**SUBPART [1806.3](#ole_link3) OTHER THAN FULL AND OPEN COMPETITION**

1806.302 Circumstances permitting other than full and open
competition.  

1806.302-4 International agreement.

1806.302-7 Public interest.

1806.303 Justifications.

1806.303-1 Requirements.

1806.303-170 Sole-source purchases by contractors.

1806.303-2 Content.

1806.303-270 Use of unusual and compelling urgency authority.

1806.304-70 Approval of NASA justifications.

**SUBPART [1806.5](#subpart-1806.5--competition-advocates) COMPETITION
ADVOCATES**

1806.501 Requirement.

1806.502 Duties and Responsibilities.

**PART 1806**

## COMPETITION REQUIREMENTS

**Subpart** []{#ole_link2 .anchor}**1806.2\--Full and Open Competition
After Exclusion of Sources**

**1806.202 Establishing or maintaining alternative sources.**

\(a\) The authority of [**FAR
6.202**](http://www.acqnet.gov/far/current/html/Subpart 6_2.html#wp1086978)
is to be used to totally or partially exclude a particular source.

\(b\) The supporting data and the D&F must name the source to be
excluded and shall include the following information as applicable and
any other relevant information:

**(i)** The specific purpose to be served in excluding the source as
enumerated in FAR 6.202(a).

**(ii)** The acquisition history of the supplies or services, including
sources, prices, quantities, and dates of award.

**(iii)** The circumstances making it necessary to exclude a particular
source from the contract action:

**(A)** Reasons for lack of sources; e.g., the technical complexity and
criticality of the item.

**(B)** Current annual requirement and prospective needs for the
supplies and services.

**(C)** Projected future requirements.

**(iv)** Whether the existing source must be totally excluded from the
action or whether a partial exclusion is sufficient.

**(v)** The potential effect of exclusion on the excluded source in
terms of any loss of capability to furnish the supplies or services in
subsequent contract actions.

**(vi)** When the authority of [**FAR
6.202(a)(1)**](http://www.acqnet.gov/far/current/html/Subpart 6_2.html#wp1086978)
is cited, the basis for \--

**(A)** Assumptions regarding future competition; and

**(B)** The determination that exclusion of a particular source will
likely result in reduced overall costs for anticipated future
acquisitions, including (as a minimum) discussion of start-up costs,
costs associated with facilities, duplicative administration costs (such
as for additional inspection or testing), economic order quantities, and
life-cycle-cost considerations.

**(vii)** When an additional source or additional sources must be
established to provide production capacity to meet current and
mobilization requirements\--

**(A)** The current annual and the mobilization requirements for the
item, citing the source of, or the basis for, the planning data;

**(B)** A comparison of current production capacity with current and
mobilization requirements; and

**(C)** The hazards of relying on the present source and the time
required for new sources to acquire the necessary facilities and skills
and achieve the production capacity necessary to meet requirements.

**1806.202-70 Formats.**

A sample format for D&Fs citing the authority of FAR 6.202(a) follows:

**National Aeronautics and Space Administration**

**Washington, DC 20546**

## Determination and Findings

**Authority to Exclude a Source**

On the basis of following findings and determination, which I make under
the authority of 10 U.S.C. 2304(b)(1) as implemented by FAR 6.202, the
proposed contract action described below may be awarded using full and
open competition after exclusion of [    (1)    ]{.underline} .

**Findings**

1\.  It is proposed that the following requirement be acquired using
full and open competition after exclusion of the source identified
above.

2\.  The source identified above can be expected to receive an award for
this requirement unless excluded.

3\.  It is necessary to establish or maintain an alternative source or
sources.

4\.  The exclusion of this source will increase or maintain competition
and is likely to result in reduction of [    (2)    ]{.underline} in
overall costs for any anticipated acquisition of the supplies or
services being acquired. This estimate is based on
[    (3)   ]{.underline}.

(See Note 4 for the use of Alternates I and II below.)

**Alternate I:**  The exclusion of this source will serve the national
defense interest by having an alternative supplier available for
furnishing the supplies or services being acquired, in case of a
national emergency or industrial mobilization, because
[    (5)   ]{.underline}.

**Alternate II:**  The exclusion of this source will serve the national
defense interest by establishing or maintaining an essential
engineering, research, or development capability of an educational or
other nonprofit institution or a federally funded research and
development center, because [    (5)    ]{.underline} .

## Determination

The exclusion of the source identified above will increase or maintain
competition and is likely to result in reduced overall costs for any
anticipated acquisition of the supplies or services being acquired.

(See Note 4 for the use of Alternates I and II below.)

**Alternate I:** It is in the interest of the national defense to
exclude the source identified above in order to have an alternative
supplier available for furnishing the supplies or services being
acquired, in case of a national emergency or industrial mobilization.

**Alternate II:** It is in the interest of national defense to exclude
the source identified above in order to establish or maintain an
essential engineering, research, or development capability to be
provided by an educational or other nonprofit institution or a federally
funded research and development center.

Date\_\_\_\_\_\_\_\_\_\_\_

**NOTES:**

1\. Name of source to be excluded.

2\. Description of estimated reduction in overall costs.

3\. Description of how estimate was derived.

4\. In paragraph 4 and in the Determination, the basic wording is
appropriate when [**FAR
6.202(a)(1)**](http://www.acqnet.gov/far/current/html/Subpart 6_2.html#wp1086978)
applies; Alternate I is appropriate when FAR 6.202(a)(2) applies; and
Alternate II is appropriate when FAR 6.202(a)(3) applies.

5\. Description of circumstances necessitating the exclusion of the
identified source.

**Subpart** []{#ole_link3 .anchor}**1806.3\--Other Than Full and Open
Competition**

**1806.302 Circumstances permitting other than full and open
competition.**

**1806.302-4 International agreement.**

\(c\) Pursuant to 10 U.S.C. 2304(f)(2)(E), an individual justification
for other than full and open competition under the authority of [**FAR
6.302-4**](http://www.acqnet.gov/far/current/html/Subpart 6_3.html#wp1086917)
is not required when the procurement officer signs a Memorandum for the
Record that describes the specific terms of the international agreement
or treaty that limit acquisitions in support of, or as a result of, the
agreement or treaty to less than full and open competition.

**1806.302-7 Public interest.**

(c)(2) The notice to Congress shall be made by NASA Headquarters, Office
of Legislative Affairs. The Office of Procurement, Program Operations
Division shall request the notice to be made immediately upon approval
of a D&F and shall advise the contracting activity of the date upon
which the notification period ends.

\(3\) The contracting officer shall prepare the D&F required by [**FAR
6.302-7(c)(1)**](http://www.acqnet.gov/far/current/html/Subpart 6_3.html#wp1086959)
in any format that clearly documents the determination and the
supporting findings.

**1806.303  Justifications.**

**1806.303-1 Requirements.**

\(b\) Justifications for using less than full and open competition may
be prepared by the technical office initiating the contract action when
it is recommending the use of the justification authority, or by the
contracting officer if the technical office does not make such a
recommendation.

\(c\) The contracting officer shall send a copy of each approved
justification or D&F that cites the authority of FAR 6.302-7 to NASA
Headquarters, Office of Procurement, Program Operations Division, unless
one of the exceptions at [**FAR
25.401**](http://www.acqnet.gov/far/current/html/Subpart 25_4.html#wp1086604)
applies to the acquisition. The transmittal shall indicate that the
justification is being furnished under [**[FAR
6.303-1]{.underline}**](http://www.acqnet.gov/far/current/html/Subpart 6_3.html#wp1086972).

\(d\) NASA Headquarters, Office of Procurement, Program Operations
Division shall be notified of all actions citing the authority of FAR
6.302-2.  Notification shall be accomplished in two steps.  Step One:
The contracting officer shall notify the cognizant analyst in Program
Operations Division of actions requiring the use of an unusual and
compelling urgency justification as soon as the requirement is
determined or the need is identified. This written notice shall
be emailed to the Program Operations Division analyst and shall provide
a short summary of the purpose and need behind the justification and
also provide the anticipated award date of the contractual action.  The
purpose of this notification is to initiate a telephone dialogue between
the Center and HQ\'s Program Operations Division to discuss the need and
the anticipated contracting approach. The Center shall be responsible
for initiating this telephone dialogue with HQ to ensure receipt of the
written notification. This notification shall be accomplished prior to
approval of the justification and prior to award of the contractual
action unless the urgent nature of the situation does not allow time to
submit the notice.  Step Two:  The contracting officer shall send a copy
of each approved justification or D&F that cites the authority of FAR
6.302-2 to NASA Headquarters, Office of Procurement, Program Operations
Division's cognizant analyst within three days of its approval. 
Transmission of this copy can be by facsimile unless NASA Public Key
Infrastructure (PKI) is determined necessary.  The purpose of the
notice is for informational, record and analysis purposes and will
provide the Program Operations Division the opportunity to identify any
systemic issues associated with the various justifications.  

**1806.303-170 Sole-source purchases by contractors.**

The requirements of [**FAR Part
6**](http://www.acqnet.gov/far/current/html/FARTOCP6.html#WP280339) and
NFS Part 1806 apply if NASA directs a prime contractor (by
specifications, drawings, parts lists, or otherwise) to purchase items
on a sole-source basis. Accordingly, procurement officers shall take
necessary actions to ensure that such sole-source acquisitions are
properly justified.

**1806.303-2 Content.**

**1806.303-270 Use of unusual and compelling urgency authority.**

\(a\) When using the authority of FAR 6.302-2, the justification
required in FAR 6.303 shall describe and provide rationale as to the
extent and nature of the harm to the Government by: quantifying the
serious injury; estimating the cost and describing the basis for the
estimate of the financial injury. If personal injury or loss of life or
any other injury is probable, describe the circumstances behind this
potential injury/loss and why no other action could avert these
conditions. Include a chronological explanation of events that caused
the urgent situation. The justification must also explain the extent to
which competition is limited and describe the extent to which maximum
practicable competition was obtained given the circumstances.

\(b\) If the authority at [**FAR
6.302-2**](http://www.acqnet.gov/far/current/html/Subpart 6_3.html#wp1086879)
is used for extending the performance period of an existing services
contract, the justification shall contain the information required by
FAR 6.303-2 and;

\(1\) Documentation that the acquisition process for the successor
contract was started early enough to allow for adequately planning and
conducting a full and open competition, together with a description of
the circumstances that prevented award in a timely manner; and

\(2\) Documentation of the reasons why no other source could practicably
compete for the interim requirement.

**1806.304-70 Approval of NASA justifications.**

Concurrences and approvals for justifications of contract actions
conducted in accordance with [**FAR Subparts
6.2**](http://www.acqnet.gov/far/current/html/Subpart 6_2.html#wp1086973)
and
[**6.3**](http://www.acqnet.gov/far/current/html/Subpart 6_3.html#wp1086841)
shall be obtained as follows:

\(a\) For proposed contracts over \$550,000 but not exceeding
\$11,500,000 -

\(1\) Concurring official: Procurement Officer

\(2\) Approving official: Center or Headquarters Competition Advocate.

\(b\) For proposed contracts over \$11,500,000 but not exceeding
\$78,500,000 -

\(1\) Concurring officials:

\(i\) Procurement Officer

\(ii\) Center or Headquarters Competition Advocate

\(2\) Approving official: Head of the contracting activity.

\(c\) For proposed contracts over \$78,500,000 -

\(1\) Concurring officials:

\(i\) Procurement Officer

\(ii\) Center or Headquarters Competition Advocate

\(iii\) Head of the contracting activity.

\(iv\) Agency Competition Advocate

\(2\) Approving Official: Assistant Administrator for Procurement

\(d\) The approval authority of [**FAR
6.304(a)(3)**](http://www.acqnet.gov/far/current/html/Subpart 6_3.html#wp1086998)
may not be delegated to other than the installation\'s Deputy Director.

\(e\) For proposed contract actions requiring approval by the Assistant
Administrator for Procurement, the original justification shall be
forwarded to the Assistant Administrator for Procurement, Office of
Procurement, Program Operations Division.

\(f\) Regardless of dollar value, class justifications shall be approved
by the Assistant Administrator for Procurement.

## Subpart 1806.5\--Competition Advocates

**1806.501 Requirement.**

#  (1) The Director, Program Operations Division, is the agency competition advocate, reporting to the Assistant Administrator for Procurement on issues related to competition of NASA acquisitions.

**(2)** The Center Deputy Directors or Associate Directors are the
competition advocates for their contracting activities.

**(3)** The executive officer for the Director of Headquarters
Operations is the competition advocate for the Headquarters contracting
activity.

**1806.502 Duties and Responsibilities.**

(b)**(i)** Center competition advocates shall submit annual reports to
the agency competition advocate on or before November 30.

**(ii)** The agency competition advocate shall submit an annual agency
report on or before January 31.