Source: http://farsite.hill.af.mil/reghtml/regs/other/nmcars/5201.htm
Timestamp: 2018-02-24 19:34:01
Document Index: 553428539

Matched Legal Cases: ['ART 5201', 'ART 5201', 'ART 5201', 'ART 5201', 'ART 5201', 'ART 5201', 'art 25', 'art 25', 'art 225', 'art 5225', 'art 8', 'art 13', '§1724']

NMCARS PART 5201 FEDERAL ACQUISITION REGULATIONS SYSTEM
SUBPART 5201.1—PURPOSE, AUTHORITY, ISSUANCE
5201.101 (FAR 1.101) Purpose.
5201.102 (FAR 1.102) Statement of guiding principles for the Federal Acquisition System.
5201.103 (FAR 1.103) Authority.
5201.104 (DFARS 201.104) Applicability.
5201.105 (FAR 1.105) Issuance.
5201.105-2 (FAR 1.105-2) Arrangement of regulations.
5201.107 (DFARS 201.107) Certifications.
5201.108 (FAR 1.108) FAR conventions.
5201.170 (DFARS 201.170) Peer reviews.
5201.170-4 (PGI 201.170-4) Administration of peer reviews.
SUBPART 5201.2—ADMINISTRATION
5201.201 (DFARS 201.201) Maintenance of the FAR.
5201.201-1 (DFARS 201.201-1) The two councils.
SUBPART 5201.3—AGENCY ACQUISITION REGULATIONS
5201.304 (DFARS 201.304) Agency control and compliance procedures.
SUBPART 5201.4—DEVIATIONS FROM THE FAR
5201.402 (DFARS 201.402) Policy.
5201.403 (DFARS 201.403) Individual deviations.
5201.404 (DFARS 201.404) Class deviations.
SUBPART 5201.6—CAREER DEVELOPMENT, CONTRACTING AUTHORITY, AND RESPONSIBILITIES
5201.601 (FAR 1.601) General.
5201.602 (FAR 1.602) Contracting officers.
5201.602-1 (FAR 1.602-1) Authority.
5201.602-3 (FAR 1.602-3) Ratification of unauthorized commitments.
5201.603 (FAR 1.603) Selection, appointment, and termination of appointment for contracting officers.
5201.603-1 (FAR 1.603-1) General.
5201.603-4 (FAR 1.603-4) Termination.
5201.691-1 Purpose.
(d)(S-90) By October 15th of each even numbered year, and to support the biennial certification required by the Senior Procurement Executive (SPE), the Heads of the Contracting Activity (HCAs) shall submit written certifications that the contracting activity is in compliance with Department of Defense (DoD) Instruction (DoDI) 5000.66. Activities shall submit certifications to Deputy Assistant Secretary of the Navy (Acquisition and Procurement) (DASN(AP)) by email at RDAJ&As.fct@navy.mil with the subject “FAR 1.102 - Biennial Certification of Evaluation Requirements of Contracting Officers.”
(S-90) All DoN activity acquisition regulation supplements and changes thereto are required to be approved by DASN(AP). Requests for review and DASN(AP) approval shall be submitted
annually via email to Policy@navy.mil with the subject “[Activity Name] acquisition regulation
supplement – Request for Approval.”
(1) References to this supplement within this supplement will be without a name or acronym prefix. References to FAR citations in this supplement should be read to include any corresponding paragraphs of the DFARS and this supplement and any additional authorizations, restrictions, policies and procedures they may contain. For example, the words "...when authorized under FAR Part 25..." include authorities granted under FAR Part 25, DFARS Part 225 and Part 5225 of this supplement. A FAR cite in parentheses immediately after the NMCARS cite means related coverage is contained in the FAR (e.g. 5201.104 (FAR 1.104)). A DFARS cite in parentheses immediately after the NMCARS cite means related coverage is contained in the DFARS (e.g. 5201.104 (DFARS 201.104)). A Procedures, Guidance and Information (PGI) cite in parenthesis immediately after the NMCARS cite means related coverage is contained in PGI (e.g. 5201.104 (PGI 201.104)). The cite denoted in parentheses represents the lowest level of guidance contained in FAR, DFARS and the PGI. Additional relevant guidance associated with the NMCARS content may also be contained in the higher level documents.
(2) Written justification for such certification is provided to the Secretary of Defense (SECDEF) by Assistant Secretary of the Navy (Research Development & Acquisition) (ASN(RDA)), and the SECDEF approves in writing the inclusion of such certification requirement.
(a)(1) DoN peer reviews shall be performed on solicitations and contracts with estimated values at $50,000,000 or more (including options). If using multiple award procedures, one Peer Review shall apply for all resulting contracts. Annex 8 contains additional Peer Review guidance. When Peer Reviews are required to be conducted by Director of Defense Procurement and Acquisition Policy (DPAP), the HCA shall notify DASN(AP) by email at RDAJ&As.fct@navy.mil with the subject “DFARS 201.170 – Request for DPAP Peer Review” 7 days prior to requesting the review from DPAP.
(2) Peer Review Rolling Forecast Report. By the 25th day of each month, HCAs shall submit a rolling forecast of acquisitions requiring peer reviews by DASN(AP) or Director of DPAP, in the format prescribed by Annex 8, Peer Review Program. Submit the required information to DASN(AP) by email at RDAJ&As.fct@navy.mil with the subject “DFARS 201.170 - Peer Review Rolling Forecast.”
(b) See (S-90) below for procedures.
(S-90) (1) The Head of Contracting Activity (HCA) shall be responsible for conducting and approving peer reviews for acquisitions valued at $50,000,000 to $1,000,000,000 unless the approval authority is DASN(AP) or DPAP.
(2) Performance Based Logistics (PBL) acquisitions with a value greater than the approval authority defined in FAR 6.304(a)(4), whether sole source or competitive, shall have a DASN(AP) Peer Review. Submit the peer review package to DASN(AP) by email at RDAJ&As.fct@navy.mil with the subject “DFARS 201.170 – DASN(AP) PBL Peer Review.”
(3) Peer Reviews for Services. The HCA shall establish a Peer Review Board comprised of senior contracting personnel from outside of its activity (i.e., from another HCA) for –
(A) Competitive actions valued at $250,000,000 to $1,000,000,000.
(B) Non-competitive actions valued at $250,000,000 to $500,000,000.
(4) Peer Reviews for Supplies. The HCA shall establish procedures for the conduct of these peer reviews using the thresholds at FAR 201.170(b).
(5) The HCA shall provide a copy of the peer review report within 15 days of completion of
the peer review to DASN(AP) by email at RDAJ&As.fct@navy.mil with the subject “NMCARS 5201.170(b)(S-90) - Peer Review Report.”
(S-91) If a waiver from the peer review process is desired, submit the procurement history, rationale and specific circumstances surrounding the request, including impact to the program if a waiver from the peer review process is not granted, approved by the Deputy/Assistant Commander for Contracts of the cognizant HCA, without power of redelegation, to DASN(AP) by email at RDAJ&As.fct@navy.mil with the subject “NMCARS 5201.170(b)(S-91) - Peer Review Waiver Request.”
(f) Contracting Officers shall submit copies of required memoranda documenting the disposition of peer review results and recommendations to DASN(AP)/ Director, Program Analysis and Business Transformation (PA&BT) by email at RDAJ&As.fct@navy.mil with the subject “PGI 201.170-4 - Disposition Of Peer Review Recommendations” followed by the applicable solicitation/contract number and peer review date.
(d)(i) Submit proposed revisions to the FAR, DFARS or NMCARS to DASN(AP) via the
Deputy/Assistant Commander for Contracts of the cognizant HCA by email at Policy@navy.mil
with the subject “DFARS 201.201-1 – Proposed [FAR/DFARS/NMCARS] Revision.” Each proposed revision should include a legal review and identify the name, code, and telephone number of the activity point of contact.
(4) “Component” is defined as a DoN HCA exercising assigned or delegated contracting authority. Component clauses or changes to existing component clauses that meet the conditions at DFARS 201.301 shall be published for public comment in the Federal Register.
(A) Component clauses, except as provided DFARS PGI 201.301(b)(iii)(A), require Under Secretary of Defense (Acquisition, Technology and Logistics (USD(AT&L))/DPAP approval.
(5) Proposed clause packages shall be submitted via DASN(AP) to DPAP by email at
Policy@navy.mil with the subject “NMCARS 5201.304- Proposed Component Clause/Clause
Update Package.”
(2) Submit those requests for individual or class deviation that require approval at a level higher
than the HCA to DASN(AP) by email at Policy@navy.mil with the subject “DFARS 201.402 –
Deviation Request.”
(a) General. HCAs are responsible for establishing adequate and effective internal controls to carefully manage and closely oversee the execution of delegated contracting authority for assigned contracting mission functions. This includes proactively working with requirements and program personnel during acquisition planning to facilitate the timely submission of requirements to the appropriate contracting activity for contract action in a manner which promotes and permits maximum competition. In conjunction with executing assigned contracting missions, there are certain types of procurements for which authority resides solely with the HCA as described in paragraph (c) below, unless authority is delegated in writing to another HCA and accepted by the receiving HCA to execute those procurements. Delegation of DoN contracting authority applies only within DOD. If the contracting activity is outside DoD, contracting officers shall follow interagency acquisitions procedures in FAR 17.5, DFARS 217.5, and NMCARS 5217.5. Contracting authority delegations shall not be used to circumvent interagency acquisition requirements. At a minimum, HCAs shall address the following requirements in the contracting activity’s procedures for delegation of contracting authority:
(1) Identify all HCAs to which contracting authority has been delegated and specify any limitations on their contracting authority.
(2) Track delegations received from HCAs.
(3) Ensure DASN(AP) notification and approval of delegation, as required. Delegation of DoN contracting authority within DoN does not require prior DASN(AP) approval except as noted in 5201.601-90(b)(4). Obtain DASN(AP) approval when the request for delegation of contracting
authority is intended ultimately to lead to a procurement by a DoD activity outside DoN. Activities
shall notify DASN(AP), no less than 30 days prior to an anticipated delegation or as early as
practicable, by email at Policy@navy.mil with the subject “NMCARS 5201.601-90 – Contracting
Authority Delegation Approval” to allow time for approval before granting a delegation
of contracting authority leading to a procurement contracted by a DoD activity outside DoN.
Activities shall use the template in Annex 11, Delegation of Contracting Authority, as applicable.
(4) Ensure contracting authority delegations are made, in writing from HCA to HCA. This authority may not be redelegated. Any delegation must also consider the anticipated workload and available resources to ensure effective execution and management of the delegated authority. Upon signature, submit a copy of all contracting authority delegations to DASN(AP) by email at
Policy@navy.mil with the subject “NMCARS 5201.601-90 – Copy of Contracting Authority
(5) Manage and oversee contracting authority delegations to ensure the delegated contracting authority is being executed and administered in accordance with the delegation of authority and contracting regulations, rules, and procedures.
(1) The request to delegate contracting authority shall document the rationale supporting the delegation and address why the delegation is necessary for the efficient and proper administration of the receiving HCA’s contracting operations.
(2) The DoN HCA receiving the delegated authority shall affirmatively acknowledge and accept
the conditions of the delegation in writing prior to exercising the delegated authority.
(3) HCA delegated authority may not be redelegated to contracting offices not under the cognizance of the receiving HCA unless specifically defined in the delegation of contracting authority request.
(4) DoN HCAs receiving DoN delegated contracting authority shall obtain both delegating HCA
and DASN(AP) approval prior to using the delegated contracting authority to execute a procurement through a non-DoN cognizant contracting activity (e.g., NAVFAC delegates authority to contract for construction to NAVSUP, and NAVSUP uses the Army Corps of Engineers to procure the construction). The procurement, proposed contracting activity, and limitations should be included in the initial request for delegation authority. In all cases, the specific written delegation by the HCA holding the unique contracting authority shall occur prior to the receiving HCA requesting that another DoD activity conduct a procurement on its behalf.
(1) Deputy Assistant Secretary of the Navy (Acquisition and Procurement)(DASN(AP)) has the following overarching responsibilities:
(D) Reviews and processes acquisition documents (e.g. acquisition plans, acquisition strategies for services, Determination and Findings (D&Fs)) requiring DASN(AP) or higher level approval.
(F) Serves as the DoN’s representative on the Defense Acquisition Regulations (DAR) Council and provides DoN policy, guidance, oversight and coordination for DAR Council committees and FAR teams.
(4) Military Sealift Command (MSC) is responsible for awarding and administering contracts for services of ocean-going ships, craft, floating dry docks, and other repair facilities, for purposes such as oceanographic research and survey, underwater research, cable laying, and range instrumentation; and contracts for the maintenance, conversion, and modernization of assigned vessels. MSC’s unique contracting responsibilities include contracts for services of ferries and tugs, but exclude contracts for (i) pilot services and (ii) ferries and tugs used for husbanding services, including water taxi contracts awarded outside the continental United States under husbanding services contracts. MSC transportation responsibilities are identified in the Defense Transportation Regulation.
(i) NAVFACENGCOM’s unique contracting responsibilities include:
(N) Construction, lease, purchase and/or installation of relocatable buildings, including trailers.
(8) Naval Supply Systems Command (NAVSUPSYSCOM) is responsible for awarding and administering contracts in support of assigned logistics support functions. NAVSUPSYSCOM’s unique contracting responsibilities include procuring supplies and services for all non-contracting Navy activities, offices or commands for which no other HCA is delegated authority. NAVSUPSYSCOM is the DoN Executive Agent for the policy areas identified in paragraphs (i)
through (iv) below. NAVSUPSYSCOM shall obtain DASN(AP) approval by e-mail at
Policy@navy.mil with the subject “Request for Approval [Document Name]” before issuing
overarching policy in any of these areas:
(i) AbilityOne acquisitions as defined in FAR Part 8.
(ii) Contract Reporting.
(iii) Government purchase card program.
(iv) Simplified acquisition procedures as defined in FAR Part 13, except that NAVFACENGCOM may promulgate other procedures for construction, architect-engineer services, and facilities support service contracts.
(9) Office of Naval Research (ONR) is responsible for awarding and administering contracts and other instruments for assigned DoN Science and Technology (S&T) research. ONR unique contracting responsibilities include the award and administration of contracts to the Navy’s Federally Funded Research Development Center (FFRDC).
(10) Space and Naval Warfare Systems Command (SPAWARSYSCOM) is responsible for awarding and administering contracts in the information dominance domain, including assigned programs in the areas of research and development, systems engineering and development, and other relevant professional services associated with production, installation and sustainment for Command, Control, Communications, Computers, Intelligence Surveillance, and Reconnaissance Systems (C4ISR); Joint Tactical Radios Systems (JTRS), Space Systems; Enterprise Information Systems (EIS); and Navy Chief Information Officer (CIO) supported information technology initiatives.
(b) Contract documents shall be forwarded to the appropriate attorney or attorneys in the Office of General Counsel for review as to form and legality and any additional pertinent comment or advice.
(b)(1) Within 10 calendar days of determining the need for a ratification of an unauthorized commitment (UAC), the activity where the ratifiable action occurred shall report the UAC to its respective HCA in accordance with the Activity’s procedures.
(C) Actions valued greater than $100,000 – HCA without power of delegation
(ii) The authority to ratify, at any level, reverts to the HCA without power of delegation if--
(A) For HCAs except NAVSUP: The HCA has 15 or more UACs exceeding the micro-
purchase threshold for that FY.
(b) When an activity receives a UAC that falls within another activity’s unique contracting authority (as defined in 5201.601-90), one of two actions is required to address the UAC:
(2) Submit a quarterly report of all UACs/ratifications exceeding the micro-purchase threshold, approved at a level no lower than the Deputy/Assistant Commander for Contracts, in the
format prescribed in Annex 15 to DASN(AP) by e-mail at Policy@navy.mil with the subject “NMCARS 5201.602-3(S-90)(e)(2) – Quarterly Ratification Reporting” by January 31, April 30, July 31 and October 31. Negative reports are required.
(3) Submit a copy of HCA ratification procedures, approved at a level no lower than the
Deputy/Assistant Commander for Contracts, to DASN(AP) by e-mail at Policy@navy.mil with the
subject “NMCARS 5201.602-3(S-90)(e)(3) – Ratification Procedures” annually by March 31.
HCAs are the agency head’s designees for the selection and appointment of contracting officers, and for the termination of their appointments. HCAs will maintain records specifying who (by position/title/office) in the contracting chain of command may select, appoint and terminate appointment of qualified individuals within the contracting activity’s cognizance and specify authority limits.
Notification requirements. Submit copies of documentation supporting any warrants authorized pursuant to DFARS 201.603-2(3) and warrants issued pursuant to the exception at DFARS 201.603-
2(2)(ii) to DASN(AP) at Policy@navy.mil with the subject “DFARS 201.603-2(2)(ii) – Waiver of
Contracting Officer Qualification” within five days of issuance.
Except where a DoN activity is designated HCA for a joint-contracting operation, if there is a need to issue a warrant to a non-DoN employee, an HCA must submit a waiver request to
DASN(AP) by email at Policy@navy.mil with the subject “DFARS 201.603-2 – Contracting
Officer Warrant Issuance to a non-DoN Employee” for approval, using the template in Annex 12, provided the individual is a civilian or military member of the DoD and meets applicable requirements commensurate to the proposed warrant level per 10 U.S.C.§1724.
A Contracting Officer appointment shall be terminated in writing when the individual is transferred from the position due to reassignment or permanent change of station/duty; the need for a contracting officer function no longer exists; the individual retires, resigns or the Agency terminates his/her employment; or the individual fails to comply with laws and regulations governing the procurement process, including the delegated warrant authority and responsibilities. Warrants issued specifically for a contingency operation are only valid for the period during which the individual is assigned to support the contingency office and shall be terminated in writing upon
detachment from that office. HCAs shall keep a copy of each terminated warrant for 10 years beyond the date of termination.
(4) Modifications and changes issued pursuant to the Changes, Disputes, Economic Price Adjustment, Fair Labor Standards Act and Service Contract Act—Price Adjustment, Government Delay of Work, Government Property, Incentive Price Revision, Over and Above Work, Stop-Work Order, Termination, and Value Engineering contract clauses.
(e) Annex 2, Business Clearance Memorandum, contains the required content and recommended format to document decisions on contract actions that are subject to business clearance requirements. If an activity plans to use a format other than Annex 2, the activity shall notify DASN(AP) by submitting its HCA approved alternate format by email at RDAJ&As.fct@navy.mil with the subject “NMCARS 5201.690 – Alternate Business Clearance Memorandum Format.”
(b) Each HCA is responsible for performing management and oversight reviews of all procurement operations performed within the HCA, i.e. within Headquarters and at any subordinate contracting organization or field activity with delegated procurement authority, for procurement operations associated with any delegated authority, and at any other activities as directed by DASN(AP) or higher level authority. HCAs shall:
(2) perform and document periodic self-assessments (and other internal reviews) to evaluate and improve the quality of the procurement organization’s operations and processes within the contracting activity; and,
(c) HCAs will, upon request, provide qualified senior contracting personnel to serve on DASN(AP) PPMAP teams.
(2) By January 30th of each year, submit a report summarizing for the contracting activity the outcome of the previous fiscal year’s periodic self-assessments/internal compliance reviews performed on the contracting/procurement function at Headquarters and of on-site reviews/assessments conducted on subordinate contracting organizations and field activities with delegated procurement authority. The annual report should clearly convey the actions the HCA has taken to improve the quality of contracting/procurement operations within the contracting activity. At a minimum, the HCA’s report must:
(v) include other relevant information, i.e. the results of the HCA’s annual warrant file audits, acquisition staffing and workload analysis, external audits or reviews to include the status of relevant recommendations; and, if applicable,
(3) Submit the required information in paragraphs (d)(1) and (2) above to DASN(AP) by e-mail at RDAJ&As.fct@navy.mil with the subject “NMCARS 5201.691-2 – PPMAP Reporting.” Reports must be signed by the HCA’s senior contracting official.
(e) DASN(AP) shall be advised in writing, within five calendar days, any time an HCA revokes, suspends or reduces contracting or purchase card authority delegated to a cognizant field contracting activity or subordinate organization. Submit notifications to DASN(AP) by e-mail at RDAJ&As.fct@navy.mil with the subject “NMCARS 5201.691-2 –Revocation of [Contracting or Purchase Card] Authority.”