Part 5315 - Contracting by Negotiation

DAFFARS PART 5315 Knowledge Center

Revised: June 2023

Subpart 5315.3 — SOURCE SELECTION

5315.300 Scope of Subpart

5315.371-4 Exceptions

5315.371-5 Waiver

Subpart 5315.4 — CONTRACT PRICING

5315.400 (S-90)

5315.403-1 Prohibition on Obtaining Certified Cost or Pricing Data (10 U.S.C Chapter 271 and 41

U.S.C., Chapter 35)

5315.403-3 Requiring Data Other Than Certified Cost or Pricing Data

5315.403-4 Requiring Certified Cost or Pricing Data (10 U.S.C. Chapter 271 and 41 U.S.C., Chapter

35)

5315.404-1-90 Pricing Assistance or Pricing Assistance Waiver

5315.404-2 Data to Support Proposal Analysis

5315.404-4 Profit

5315.404-70-90 DD Form 1547, Record of Weighted Guidelines Method Application, Report Control

Symbol: DD-AT&L(Q)1751

5315.405 Price Negotiation

5315.406-1 Prenegotiation Objectives

5315.406-3 Documenting the Negotiation

5315.407-3 Forward Pricing Rate Agreements

5315.407-4 Should-cost Review

5315.407-90 Contract Audit Follow-Up (CAFU)

5315.408 Solicitation Provisions and Contract Clauses

Subpart 5315.6 — UNSOLICITED PROPOSALS

5315.606 Agency Procedures
Subpart 5315.3 — SOURCE SELECTION

5315.300 Scope of Subpart

See MP5315.3 for required Department of the Air Force Source Selection responsibilities and

procedures.

5315.371-4 Exceptions

(a)(2) See MP5301.601(a)(i).

5315.371-5 Waiver

(a) When a waiver to the requirement at DFARS 215.371-2 is sought, the contracting officer should

provide the following documentation to support the waiver request:

(1) Summary of market research that documents that competition was anticipated, process used to

maximize competition pre-solicitation, and description of solicitation method;

(2) Rationale why re-advertising for an additional 30 days will likely not obtain two or more offers.

(3) Rationale for how the price/cost will be determined fair and reasonable with only one offeror.

See MP5301.601(a)(i).

Subpart 5315.4 — CONTRACT PRICING

5315.400 (S-90)

See MP5315.4 for required Department of the Air Force contract pricing procedures. See the DoD

Sole Source Streamlining Tool Box for techniques to increase efficiency throughout the acquisition

process.

5315.403-1 Prohibition on Obtaining Certified Cost or Pricing Data (10 U.S.C

Chapter 271 and 41 U.S.C., Chapter 35)

(b) See MP5301.601(a)(i).

(c) Standards for exceptions from certified cost or pricing data requirements.

(4) Waivers.

(A) Exceptional case TINA waiver. See MP5301.601(a)(i). When the waiver is for a subcontractor
who has refused to provide cost or pricing data to a prime contractor, the information required must

cover both the prime contract and the subcontract. Contracting officers must submit a copy of all

signed TINA waivers to SAF/AQC and the cognizant HCA Workflow (if HCA is other than DAS(C) or

ADAS(C)) within 30 days of approval. Submit the request for OUSD(A&S)/DPC approval to use the

exceptional circumstances waiver pursuant to Class Deviation 2023-O0004 Section 890 Pilot

Program to Accelerate Contracting and Pricing Processes, to SAF/AQC and the cognizant HCA

Workflow (if HCA is other than DAS(C) or ADAS(C)) with the Subject: “AFFARS 5315.403-1(c)(4)(A)

– Section 890 Pilot Program to Accelerate Contracting and Pricing Processes.”

5315.403-3 Requiring Data Other Than Certified Cost or Pricing Data

(a)(4) See MP5301.601(a)(i).

(a)(6)(ii) See MP5301.601(a)(i). SCOs must ensure the required information has been uploaded into

the Contractor Denials of Data Requests information within 25 days following the end of the quarter.

Negative reports are required.

5315.403-4 Requiring Certified Cost or Pricing Data (10 U.S.C. Chapter 271

and 41 U.S.C., Chapter 35)

(a)(2) See MP5301.601(a)(i).

5315.404-1-90 Pricing Assistance or Pricing Assistance Waiver

(a) Required thresholds for requesting pricing assistance:

Sole Source Competitive

PEO (Systems) All Other All

$25M or more $10M or more $100M or more

(b) See MP5315.404-1-90(b) for procedures for requesting pricing assistance.

(c) See MP5315.404-1-90(c) for procedures for requesting a pricing assistance waiver for actions

that meet or exceed the required thresholds identified in 5315.404-1-90(a) above.

5315.404-2 Data to Support Proposal Analysis

See MP5301.601(a)(i).
5315.404-4 Profit

(c)(2)(C)(2) See MP5301.601(a)(i).

5315.404-70-90 DD Form 1547, Record of Weighted Guidelines Method

Application, Report Control Symbol: DD-AT&L(Q)1751

HQ AFMC/PK is the designated Department of the Air Force focal point for weighted guidelines

reporting. DD Form 1547s shall be prepared and reported using the web-based Weighted Guidelines

(WGL) Application. The SCO shall appoint a WGL Administrator at each geographic location. The

responsibilities of the WGL Administrator are outlined in the WGL Administrator’s Guide. Refer to

the web-enabled version of the Profit WGL Application and User Application Guides (Users and

Administrators).

5315.405 Price Negotiation

(d) In situations where a contractor inadequately supports the proposed price as fair and reasonable

despite all attempts by the contracting officer to secure adequate justification through negotiations,

these situations should be elevated and documented as described herein. When the contractor

insists on a cost/price or demands a profit or fee that the contracting officer considers unreasonable,

the contracting officer shall notify the authority one level above the contracting officer and using the

instructions in the link immediately submit an Egregious Pricing Incident Report to SAF/AQC, and

the cognizant HCA Workflow (if HCA is other than DAS(C) or ADAS(C)). The contracting officer shall

also inform the contractor that such action has been taken and continue to attempt to negotiate a

fair and reasonable cost/price.

(1) If the Egregious Pricing situation is not resolved through negotiations, the offeror is ineligible for

award unless the cognizant HCA determines, in writing, that it is in the best interest of the

Government to make award to that offeror, based on consideration of the following:

(i) The program or mission partner need for the item(s) or service(s) in terms of the specific mission

contribution;

(ii) The challenges to reaching and efforts made to reach a fair and reasonable cost/price; and

(iii) Increased cost or harm to the Government if award is not made.

(2) The PEO or Wing Commander (or other corresponding authority) and SCO shall certify to the

cognizant HCA that the conditions listed in (d)(1) exist and award should be made. DAFFARS 5301.7

provides instructions for the submission of the Determination and Findings (D&F).

(3) Contracting officers, with coordination from the cognizant SCO, must report price negotiation

situations, where (d)(1) applies, to the cognizant HCA Workflow no later than 30 days after

negotiations have concluded. Update the Egregious Pricing Incident Report completed under

paragraph (d) with post-negotiation information and submit a copy of the final negotiation

memorandum and D&F as attachments.

(4) The procedures specified in (d)(1-3) above apply to situations where certified cost and pricing
data are required and to situations when certified cost and pricing data are not required. If used in

situations where other than certified cost or pricing data is required and FAR 15.403-3(a)(4) applies,

contracting officers should also complete reporting requirements required under DAFFARS

5315.403-3(a)(6)(ii) above.

5315.406-1 Prenegotiation Objectives

(b)(ii) Adjudication Procedures. The contracting officer must forward DCAA requests for Air Force

management review through their management chain and provide the SCO name and contact

information to the cognizant DCAA representative. If disagreements remain, the SCO must elevate

the issue to the cognizant HCA to support any request from DCAA for further elevation of the

issue(s).

(b)(90) A Preliminary Price Negotiation Memorandum (PPNM) is required for all actions of $10M or

more. The AF PPNM template may be tailored for use.

5315.406-3 Documenting the Negotiation

(a) See the Price Negotiation Memorandum (PNM) Checklist that may be used to ensure PNMs

contain all required information. For contract actions valued below the Truthful Cost or Pricing Data

threshold, the AF Streamlined PNM Format for supplies or services is available for use. If the value

of the contract action exceeds the Truthful Cost or Pricing Data threshold and no exception to the

Truthful Cost or Pricing Data threshold applies, pricing documentation is expected to address the

cost element composition of the proposed, objective, and negotiated positions at an appropriate level

of detail based on the value and complexity of the pricing action. The final PNM template and

streamlined PNM templates for supplies or services may be tailored for use.

5315.407-3 Forward Pricing Rate Agreements

(b)(i) See MP5301.601(a)(i).

5315.407-4 Should-cost Review

(b) Program should-cost review.

(4) The contracting office organizes and manages the program should-cost review. The team chief is

responsible for the completion of the should-cost review team report.

(c)(2)(B) See MP5301.601(a)(i).

5315.407-90 Contract Audit Follow-Up (CAFU)

Follow MP5315.407-90for conducting CAFU activities.
5315.408 Solicitation Provisions and Contract Clauses

(2)(i)(A)(2) See MP5301.601(a)(i).

(ii)(A)(2) See MP5301.601(a)(i).

Subpart 5315.6 — UNSOLICITED PROPOSALS

5315.606 Agency Procedures

See MP5315.606-90 for points of contact and procedures for controlling the receipt, handling,

evaluation, and timely disposition of unsolicited proposals.