Source: http://farsite.hill.af.mil/reghtml/changes/afmcac/afmcac97-4.htm
Timestamp: 2017-10-17 05:49:11
Document Index: 4391597

Matched Legal Cases: ['art 5301', 'art 5315', 'art 5353', 'art 5315', 'ART 5301', 'ART 5301', 'art07', 'ART 5315', 'ART 5315', 'ART 5315', 'ART 5315', 'ART 5315', 'art 45', 'art 13', 'ART 5315']

AFMCAC 97-4
AFMC ACQUISITION CIRCULAR 97-4
Wright-Patterson AFB OH 45433	30 Jul 99
1. All items in this AFMCAC are effective as of the date of publication. It shall remain in effect until specifically cancelled or incorporated by a subsequent edition of the AFMCFARS.
2. This AFMCAC implements AFMC FAR Council cases 99-04, Reference Document for PRs and MIPRs; 99-07, Source Selection Policy; 99-13, Clarification of Delegable Other Contracting HCA Authorities; and 99-17, Acquisition Strategy Panels.
3. AFMCAC 97-4 amends the AFMCFARS as specified below (all changes are marked by revision bars on the right hand side of the change pages):
a. Item 1. Title: AFMCFARS 5332.703-90, page 32-1. Purpose/Explanation of Change(s): Changes MIPR/PR funding procedure reference from AFI 177-120 to DFAS-DE 7220.2-M. (AFMCFARS case 99-04)
b. Item 2. Title: AFMCFARS Part 5301, page1-8, Part 5315, pages 15i through 15-12, Part 5353.290, page 53-3, Appendix AA, pages AA-1 through AA-10 (deleted), and Appendix BB, pages BB-1 through BB-20 (deleted). (AFMCFARS case 99-07) Conforms AFMCFARS to changes made to AFFARS which eliminated Appendices AA and BB and significantly changed the source selection procedures in part 5315.
c. Item 3. Title: AFMCFARS 5301.601-91, page 1-4. (AFMC FAR case 99-13) Clarifies delegable Other Contracting Authorities.
d. Item 4. Title: 5307.104-91, page 7-2. (AFMC FAR case 99-17). Changes WWW cite from AFMC/PK address to SAF/AQC address because the Air Force ASP Secretariat moved from AFMC/PK to SAF/AQC.
15-i - 15-12
32-1, 32-2
53-3, 53-4
AA-1 - AA-10
BB-1 - BB-20
(4)	The contracting officer shall provide a copy of the one-time-use provision/clause to the provision/clause control focal point referenced in 5301.304-92. Except for the instant acquisition requiring use of the one time provision/clause, these provisions/clauses shall not be available for use in local contract writing data bases.
(d)	Multiple-use provisions and clauses are provisions/clauses that are published and prescribed in the FAR or supplements.
(e)	There are two categories of solicitation/contract special language: contractor/program unique and implementation/administrative. This language is normally captured in contract writing data bases.
(1)	Contractor/program unique language is written for use with a single contractor to address a specific, unique situation, or for use with more than one contractor to address a specific, unique situation peculiar to a program. An example would be a Corporate Administrative Contracting Officer (CACO) recommended clause for use in all contracts with a certain contractor pertaining to its pension plan.
(2)	Implementation/administrative language is developed at the center level for use in solicitations and contracts in order to implement a FAR or FAR supplement requirement or to address a variety of administrative matters. An example would be standard center language for describing the ceiling price pursuant to the FAR 52.232-7 requirement to set forth a ceiling price in the contract.
5301.304-92 Center provision/clause control and compliance requirements.
The SCCO shall (a) ensure that a repository (database) is established for the retention of one-time-use provisions/clauses and special language and (b) ensure that a focal point for this repository is appointed. The focal point is responsible for ensuring that each one-time-use provision/clause and each instance of special language is controlled by title, date or origin, and local control number and for identifying one-time-use provisions/clauses which need to be processed for multiple-use.
SUBPART 5301.4--DEVIATIONS FROM THE FAR
(90)	Authority is redelegated to the SCCO, without power of further redelegation, to approve individual deviations from the FAR, DFARS, AFFARS, and this supplement for PEO and DAC Programs and Other Contracting.
(1)	Obtain legal coordination on the deviation request prior to submittal to the SCCO for approval.
(2)	All deviation packages requiring approval above the SCCO must be coordinated with the SCCO prior to submission.
(3)	The SCCO shall submit a summary of individual deviations approved and disapproved to HQ AFMC/PK at the end of the fiscal year.
(91)	Submit deviation requests for areas set forth in DFARS 201.402(1)(i) directly to SAF/AQCP.
(90)	Submit requests for FAR, DFARS, and AFFARS class deviations directly to SAF/AQCP. Submit requests for AFMCFARS class deviations to HQ AFMC/PKA.
(1)	Obtain legal coordination prior to submission to SAF/AQCP or HQ AFMC/PKA.
(2)	All class deviation packages must be coordinated with the SCCO prior to submission.
SUBPART 5301.6--CAREER DEVELOPMENT, CONTRACTING AUTHORITY,
5301.601-91 Establishment of heads of contracting activities.
(a)	The AFMC Commander, as HCA for Other Contracting, delegates all delegable HCA authorities to the AFMC Director of Contracting. These authorities may also be exercised by the Deputy Director of Contracting. "Delegable HCA authorities" are (1) HCA authorities not explicitly identified as nondelegable and (2) HCA authorities that have not already been delegated below AFMC/PK by the FAR/DFARS/AFFARS and this supplement.
(90)	Center Commanders are authorized to act as designee of the HCA when regulation provides authority to the head of the contracting activity or designee. This authority may be redelegated only to the vice commander, executive director or SCCO.
5301.601-92 Delegation of general contracting authority.
(a)	The AFMC Commander redelegates general contracting authority for Other Contracting to the AFMC Director of Contracting. This authority may also be exercised by the Deputy Director of Contracting.
(90)	The AFMC Director of Contracting redelegates this authority to Center Commanders with power of further redelegation.
5301.601-94 Legal review.
(b)(90) The SCCO and the cognizant legal office shall establish the legal review thresholds for Other Contracting. The thresholds may not exceed the limits established in AFFARS 5301.601-94(c) for PEO and DAC Programs.
(91)	The following require legal review:
(i)	All contracting documents that are expected to result in an obligation to the Government or a change in contract value equal to or exceeding the established legal review thresholds.
(ii)	Any contracting document involving hazardous material, or the generation, storage, treatment or disposal of a hazardous waste.
(2)	The preliminary PNM (for noncompetitive actions) or price competition memorandum for award without discussions;
(3)	The final proposal revision request/determination supporting award without discussions, as applicable;
(4)	The briefing charts, as applicable;
(5)	The proposed contract or contract modification.
(91)	Ensure that the RFC documentation (e.g., briefing charts, the RFC, or contract file) contains information on the availability of sufficient funds to cover the Government’s anticipated present and contingent liabilities for the contract action under review.
5301.9008 Clearance procedures.
(c)	Specific procedures for noncompetitive acquisitions apply to acquisitions to be negotiated with competitively selected sources, e.g., A&E services, BAAs.
ATTACHMENT 5301-90
REVIEW/APPROVAL AUTHORITIES
RFP/CRA
Center/CC (2)
>$50M & <$500M
SCCO (3)
AFMC/PK (4)
(1)	These authorities may be delegated down one level except that authorities for actions below $5M may be delegated down more than one level but no lower than the contracting officer.
(2)	The Center/CC may delegate this authority.
(3)	The SCCO may delegate these authorities to the COCO on a case-by-case basis.
(4)	AFMC/PK may delegate these authorities to the SCCO on a case-by-case basis. AFMC/PK shall notify the center commander of such delegation.
(90)	The acquisition strategy developed should reflect the results of the market research previously conducted with industry.
(e)(90)	Written APs for Other Contracting actions below SPE approval threshold are not required for the following:
(i)	Recurring requirements for special programs covered by AF Sup 1 to DoDI 5000.2 for which a class J&A has been approved.
(ii)	Replenishment parts except for those replenishment buys that involve design, development, verification testing, and approval before start of production.
(iii)	Basic research under budget category 6.1.
5307.104-90 Air Force procedures for acquisition plans.
(a)(90) Sharing AP/SAMP information can give interested parties greater insight into planned activities. If deemed in the Government’s best interest and after approval by the acquisition plan approval authority, provide copies of APs/SAMPs to industry, appropriately redacted (FAR 3.104-5 and AFI 37-131, Freedom of Information Act Program) to remove negotiation/competition sensitive or For Official Use Only or classified information.
(b)(1)(90) See the following tables for AP review and approval thresholds for Other Contracting.
Center Commander (delegable)
*	S&T acquisitions less than $500M may use the simplified S&T combined AP and J&A format.
**	$15/30M means $15M or more in any FY or $30M or more for all program years.
5307.104-91 Acquisition Strategy Panels (ASPs).
(a)	Procedures for conducting ASPs are contained in AFMC Pamphlet 63-2, Acquisition Strategy Planning Process. Additional information on ASPs can be found at the following WWW address:
http://www.safaq.hq.af.mil/contracting/toolkit/part07/asp/.
(b)(90) Procedures for convening ASPs are contained in AFMC Pamphlet 63-2. Whenever industry is invited to attend ASPs, whether in a competitive or noncompetitive environment, follow the policies and procedures set forth below.
(i)	If deemed in the Government’s best interest and after approval by the ASP chairperson, provide potential offerors (in both competitive and noncompetitive acquisitions) the opportunity to attend appropriate portions of the ASP process in order to obtain industry input on the Government’s proposed acquisition strategy.
SUBPART 5315.1—SOURCE SELECTION PROCESS AND TECHNIQUES
5315-101-1
5315-102
5315.201
5315.204
5315.204-5
5315.209
5315.209-90
AFMC solicitation provisions and contract clauses.
SUBPART 5315.3--SOURCE SELECTION
5315.301-90
5315.303-90
5315.305
5315.308-90
Air Force Source Selection Documents
SUBPART 5315.4--CONTRACT PRICING
5315.403
Obtaining cost or pricing data.
5315.403-5
5315.404
5315.404-1
5315.404-4
5315.404-70
5315.404-70-90
AFMC policy and procedures for DD Form 1547, Record of Weighted Guidelines Method Application, RCS:DD-A&T(Q)1751.
5315.404-74
5315.404-76-90
Reporting profit and fee statistics in AFMC.
5315.406
5315.406-2
5315.406-3
5315.406-90
Specialized negotiation memoranda.
5315.406-91
Postaward price negotiation memorandum review.
5315.407
5315.407-1
Defective cost or pricing data.
5315.407-2
5315.407-3
5315.407-4
5315.407-90
Formula price agreements (FPAs).
5315.407-90-4
5315.407-91
Follow-up on contract audit reports
5315.407-91-3
5315.490
Reopener clauses.
SUBPART 5315.6--UNSOLICITED PROPOSALS
5315.606
5315.606-90
Air Force procedures.
SUBPART 5315.90--OMBUDSMAN PROGRAM
5315.9000
5315.9001
(a) See AFMC Performance Price Tradeoff Guide: http://www.afmc-mil.wpafb.af.mil/HQ-AFMC/PK/pkp/pkpa/ssandpp.htm#list11.
5315.102 Oral presentations.
See AFMC Oral Presentations Guide: http://www.afmc-mil.wpafb.af.mil/HQ-AFMC/PK/pkp/polvault/guides/opguide.doc.
(c)(6)(90)	Issue DRFPs for all competitive acquisitions when an AP or SAMP is required except that DRFP use is optional for BAAs, PRDAs, RDSS/Cs, and SBIRs. Consider using DRFPs when no AP or SAMP is required if the acquisition will benefit significantly from industry involvement. A DRFP is not required when a commercial acquisition using the combined synopsis/solicitation method is contemplated. Obtain approval from the SSA to waive DRFPs. Document the waiver in the AP or SAMP. If waived, the contracting officer shall consider allowing additional proposal preparation and submission time.
(91)	Procedures. Solicit industry input on source selection evaluation factors and subfactors. Include a Section M, Evaluation factors and subfactors for award in all DRFPs for competitive acquisitions.
(90)	If relevant price history information is available, include it in Section L of competitive solicitations.
(a)	The contracting officer may insert the provision at 5352.215-9000, Representations and Certifications, in Section K of solicitations not using simplified acquisition procedures when using the annual representations and certifications.
(b)	The contracting officer shall insert the provision at 5352.214-9001, Award-All or None Basis, in Section M of solicitations when contract award shall be based on a proposal responding to all items included in the solicitation.
(c)	The contracting officer shall insert the provision at 5352.215-9001, Engineering Data, in Section L of noncompetitive solicitations for spare parts when it is anticipated the offeror might offer an alternate part instead of a part specified in the schedule. Use of the provision is optional for other noncompetitive solicitations for supplies. If the Government elects to accept the alternate part, insert the clause at 5352.215-9002, Replacement Items, in Section B.
(d)	The contracting officer shall insert the provision at 5352.215-9003, Proposal Samples, substantially as written, in Section L if proposal samples, as discussed in FAR 14.202-4, are required.
(1)	If it appears that the conditions in FAR 14.202-4(f)(1) and 14.201-6(o)(2)(i) will apply, the contracting officer shall use the provision with its Alternate I.
(2)	If it appears that the conditions in FAR 14.202-4(f)(1) and 14.201-6(o)(2)(ii) will apply, the contracting officer shall use the provision with its Alternate II.
(e)	The contracting officer shall insert the provision at 5352.215-9004, Evaluation of Proposals Submitted When Qualification Requirements Do Not Exist, substantially as written, in Section L for spares acquisitions when no prequalification requirements exist and it is necessary to inform potential offerors that the Government does not have complete and adequate data, special materials, facilities, tooling, or test equipment (e.g., AMSC code is other than "G") which may be required in the performance of the contract. Use Alternate I for repair and overhaul services.
(f)	The contracting officer shall insert the clause at 5352.215-9005, Incorporation of Contractor’s Technical Proposal, in Section I if it is determined to be in the Government’s best interest to incorporate the contractor’s technical proposal. Paragraphs (c), (d), and (e) of the clause may be excluded for BAAs, PRDAs, RDSS/Cs, and SBIRs.
(g)	The contracting officer shall include the provision at 5352.215-9006, Intent to Incorporate Contractor’s Technical Proposal, in Section L when the clause at 5352.215-9005, Incorporation of Contractor’s Technical Proposal, is used.
(h)	The contracting officer shall insert the provision at 5352.215-9007, Use Of Non-Government Advisors, in Section K when contractor personnel are used to assist in analyzing proposals (see FAR 37.203(d)).
(i)	The contracting officer shall insert the provision at 5352.209-9003, Potential Organizational Conflict Of Interest, substantially as written, in Section L, and the clause at 5352.209-9002, Organizational Conflict Of Interest, substantially as written, in Section I when the contract includes requirements for contractor personnel to assist in analyzing proposals or other contractor’s products.
(j)	The contracting officer may insert the clause at 5352.215-9008, Enabling Clause Between Prime Contractors and Service Contractors, substantially as written, in Section I when a prime contractor must agree to cooperate with a service contractor.
(k)	The contracting officer may insert the clause at 5352.215-9009, Travel, substantially as written, in Section I when the contractor may be required to travel within the contiguous United States or overseas.
(l)	The contracting officer may insert the clause at 5352.215-9010, Training, substantially as written, in Section I when formal training sessions and materials are to be ordered and the Government will furnish facilities and equipment (See FAR Part 45).
5315.301-90 Definitions.
(c) Performance Risk Assessment Group (PRAG): See AFMC Pamphlet 64-113, Volume I, 23 Apr 99, Source Selection Activities Guide (Performance Risk Assessment Group (PRAG) Guide: http://www.afmc.wpafb.af.mil/pdl/afmc/64afmc.htm) and Interim Policy Notice 98-6 at http://www.afmc-mil.wpafb.af.mil/HQ-AFMC/PK/pkp/pkpa/ ssandpp.htm#list6.
(q) Probable Cost (PC): The Government estimate of the total cost most likely to be incurred if a contract is awarded. In addition to specific contract acquisition cost, this estimate should include any other Government cost expected to be incurred. Some examples include Government furnished property, Government furnished facilities, or cost of transportation. PC is most frequently used to evaluate cost in cost reimbursement and other flexibly priced contracts.
5315.303-90 Responsibilities
(a)(5) The Source Selection Information Briefing Certificate may be used on a fiscal year basis for individuals who must have access to SSI in the performance of their official duties throughout the year, whether or not they participate as part of the actual source selection team.
(i) PRAG members may also serve as evaluators in assessing other evaluation factors. Non-government personnel (including Federally Funded Research and Development Centers (FFRDC)) shall not be PRAG members.
(a)(3)(90) For S&T acquisitions, mission capability shall be evaluated using the following color ratings and definitions:
COLOR	RATING DEFINITION
Blue	Exceptional Exceeds technical expectations. Reflects an
innovative approach and/or superior understanding of
Green	Acceptable Meets technical expectations. Reflects a sound
approach and/or satisfactory understanding of the
Yellow	Marginal Does not clearly meet technical expectations.
Reflects an uncertain approach and/or incomplete understanding of the technology.
Red	Unacceptable Unawardable. Fails to meet technical expectations.
Reflects an unworkable approach and/or inferior understanding of the technology.
5315.308-90 Air Force Source Selection Documents.
(90) Document the following PRAG information for each offeror in the briefing charts or PAR if required:
(a) Sources and type of performance data gathered. Examples of types of data include percent of award fee earned, delivery rates, program specific data, test results, or cost performance data;
(b) Relevancy and significance of the data. Describe the methodology used by the PRAG to determine the relevancy of a past or present contract effort. Describe those efforts considered most relevant and provide the rationale supporting their relevance.
(c) Performance confidence assessments and supporting rationale. Cite specific examples, trend analyses, and overall judgments in support of each performance risk assessment.
(d) Mitigating circumstances (if any), such as process changes, that have resulted in improvements to previous performance problems.
5315.403-5 Instructions for submission of cost or pricing data or information other than cost or pricing data.
(90)	If adequate price competition is anticipated but may not be realized and cost or pricing data would otherwise be required under FAR 15.403-4, contracting officers should include the provision at 5352.215-9014, Submission of Cost or Pricing Data, substantially as written, in Section L to reserve the right to request the cost or pricing data at a later date. In no case shall the time period be so short as to require the offeror(s) to unnecessarily prepare a cost proposal to have on hand in case adequate price competition does not occur.
5315.404 Proposal analysis.
5315.404-1 Proposal analysis techniques.
(b)(2)(ii)	A prior price which was determined reasonable solely by comparison to another prior price is not a valid comparison base unless additional price analysis is performed to ensure that it is still a valid basis for comparison. To make a valid comparison between the current buy and the historical price, review the historical contract file for differences in delivery schedule, quantity, etc. Consideration should also be given to the possibility of reduced prices caused by maturing technology.
(c)(2)(90)	The BOCO or COCO may approve written requests for the use of an Alternate Structured Approach (ASA). This authority may not be redelegated.
5315.404-70 DD Form 1547, Record of Weighted Guidelines Method Application.
5315.404-70-90 AFMC policy and procedures for DD Form 1547, Record of Weighted Guidelines Method Application, RCS:DD-A&T(Q)1751.
(a)	HQ AFMC/PKPC is the command focal point for weighted guidelines reporting. Each SCCO shall establish procedures for processing and reporting profit and fee data and shall appoint a profit monitor at each geographic location. The responsibilities of the profit monitor are:
(1)	Act as liaison with HQ AFMC on all matters relating to reporting profit and fee data to the designated office of the DoD-wide management information system (DFARS 215.404-75).
(2)	Establish and maintain a contract file review system to ensure that all reportable transactions, including priced options when exercised, are reported.
(3)	Ensure timeliness of submitted report.
(b)	When preparing a DD Form 1547, the contracting officer shall:
(1)	For contract actions involving multiple contract types, prepare a separate DD Form 1547 for each contract type to determine suitable profit objectives for the different line items.
(2)	For time-and-materials (T&M) contracts covering a single identifiable effort where a proposal has been obtained, prepare a DD Form 1547 reflecting the objective cost elements for that effort. If a T&M ordering contract is contemplated, and a cost proposal has been obtained for a firm initial order, prepare the DD Form 1547 based on the objective position value of that order. When a firm initial order is not known, or when negotiating rates for the contract instead of obtaining a proposal specific to an order, a hypothetical scenario incorporating the objective cost position may be used with DD Form 1547 to calculate a profit objective. After award of the T&M ordering contract, preparation of a DD Form 1547 for any subsequent order is not required unless a new profit analysis is performed in negotiating a price for such order. The cost reimbursable materials portion of T&M actions should be excluded from DD Form 1547 calculations.
(3)	For modifications where the basic contract profit rate will not be used (see FAR 15.404-4(c)), prepare a DD Form 1547 reflecting only the value of new (added) work to price that portion of the change proposal. Deleted work may be priced using the basic contract rate, the rate computed for added work, or a separately computed rate, as considered appropriate by the contracting officer. DD Forms 1547 should not be prepared based on aggregate or net values of the modification.
(4)	Exclude nonprofit-bearing costs (e.g., reimbursables, royalties, warranty costs, or state income taxes) from DD Form 1547 calculations.
(5)	Prepare separate DD Forms 1547 for priced options concurrent with the DD Form 1547 prepared for the basic contract. However, the option DD Forms1547 shall be kept in the contract file and submitted in accordance with current submission requirements when each option is exercised.
(c)	Contract type risk and working capital adjustment does not apply to undefinitized long lead contract actions.
(d)	Facilities capital employed. If the contractor's investments resulted from Government funded programs, a below normal value should be assigned. This is because the purpose of rewarding a contractor in the facilities capital employed area is to recognize investments made by the contractor to reduce Government acquisition costs.
5315.404-74 Fee requirements for cost-plus-award-fee contracts.
(c)	When compliance with the offset policy of DFARS 215.404-73(b)(2) results in a negative base fee, subtract an amount equal to the facilities cost of capital or one percent of the estimated cost of the contract (whichever is less) from the award fee pool and use a base fee of not less than zero. The contracting officer shall document this in the PNM and cite this paragraph as the authority.
5315.404-76-90 Reporting profit and fee statistics in AFMC.
(a)	DD Form 1547s shall be prepared and reported using the current version of the profit weighted guidelines desktop computer software editor and J010 conversion programs.
(b)	Where multiple contract types are involved (see 5315.404-70-90(b)(1)), report only the DD Form 1547 reflecting the largest dollar amount if that DD Form 1547 meets the reporting threshold. Otherwise, reporting is not required.
(c)	Report T&M actions (see 5315.404-70-90(b)(2)) only if the value of the identifiable effort or known order reflected on the DD Form 1547 meets the reporting threshold.
(d)	If a modification results in a net increase to the contract value that meets the reporting threshold, report the DD Form 1547 prepared for new (added) work only.
5315.406 Documentation.
5315.406-2 Certificate of Current Cost or Pricing Data.
(90)	When a contractor submits additional cost or pricing data after the date of agreement on price, but before contract award, which is current as of the date of agreement on price, the contracting officer shall:
(1)	require the contractor to provide a price impact summary which separately reflects price increase and price decrease impacts on the negotiated price;
(2)	allow only a downward price adjustment or a net zero adjustment (when valid price increase offsets are present); and
(3)	require that the "as of" date on the Certificate of Current Cost or Pricing Data be the date of agreement on price rather than the date the additional data was submitted.
(a)(90)	The content of a PNM will vary according to the nature of the contractual action being discussed. Guidelines for writing the PNM can be found in the HQ AFMC Price Negotiation Memorandum/Price Competition Memorandum (PNM/PCM) Guide available on the WWW (http://www.afmc.wpafb.af.mil/HQ-AFMC/PK/pkp/pkpc/pnmpcm.htm).
(91)	If a contractor submits additional cost or pricing data after the date of agreement on price, but before contract award, the contracting officer shall separately identify and discuss the data received after the date of agreement on price and any resulting price adjustments in the PNM. It should be made clear in the PNM that the Government specifically relied on the contractor's summary impact statement. The PNM should also discuss whether or not, and to what extent, the data was audited or reviewed.
5315.406-90 Specialized negotiation memoranda.
(a)	For acquisitions at or below the threshold for simplified acquisition procedures, normally use AFMC Form 829, Price Negotiation Memorandum (Price Analysis), or AFMC Form 829A, Price Negotiation Memorandum (Cost Analysis Without Cost or Pricing Data), as the PNM. Generally, do not use AFMC Form 829 and 829A for acquisitions that are above the simplified acquisition threshold, however, the forms may
be used at the discretion of the contracting officer for noncomplex acquisitions, especially for acquisitions using FAR Subpart 13.5. The PCO should use the AFMC PNM/PCM Guide to complete PNMs over the threshold for simplified acquisitions.
(b)	For source selection pricing actions where adequate price competition does not exist, prepare a PNM compliant with FAR 15.406-3 as supplemented. If adequate price competition applies, prepare a PCM. The PCM shall address all applicable areas of Attachment B to the PCM Guide.
(c)	In accordance with clearance procedures (AFFARS 5301.9007(b)(2)(ii)), noncompetitive actions require a preliminary and a final PNM. The preliminary PNM will essentially incorporate the proposed and objective positions for management approval to begin negotiations. The final PNM will include the preliminary PNM information either as an attachment or within its context, but both documents must be separately identifiable in the memorandum. The final PNM shall adequately document the proposed, the objective, and the considered negotiated position for all applicable areas of the AFMC PNM Checklist. When the briefing format is used for the preliminary PNM, it shall not be used or attached to the final PNM since it is not in narrative format as required to adequately document the acquisition.
5315.406-91 Postaward price negotiation memorandum review.
SCCO shall establish local procedures for postaward review of PNMs and PCMs. This review shall focus on the quality of the memorandums and the identification of training requirements.
5315.407 Special cost or pricing areas.
5315.407-1 Defective cost or pricing data.
(b)(7)(i)(90)	Contracts or modifications entered into on or before 8 Nov 85 shall bear simple interest from the date due until paid unless paid within 30 days of becoming due in accordance with FAR 52.232-17, Interest. The interest shall be calculated using the appropriate Treasury rate(s).
(91)	Contracts or modifications entered into after 8 Nov 85 shall bear simple interest from the date of overpayment in accordance with Section 934 of the DoD Authorization Act of 1986 (Public Law 99-145) and Section 952 of Public Law 99-591. The interest shall be calculated using the appropriate Internal Revenue Code (26 U.S.C. Sec. 6621) "underpayment" rate(s) published quarterly in the IRS monthly bulletin, or see prompt payment rates at http://afmc.wpafb.af.mil/HQ-AFMC/PK/pkp/pkpc/econdata.htm.
(b)(7)(iv)(90) Modifications shall be tailored to the type of contract, status of completion, status of fund liquidation, etc. Modifications shall include as a minimum the full accounting classification code, unit price adjustments (if appropriate for the modification), and audit report numbers and dates (including supplements) that are settled as a result of the modification. Interest and/or penalties should be identified separately from the amount defective and shall always be received by check. The contract price shall not be reduced by the amount of the interest. The contractor shall be informed that any checks submitted shall be made payable to the "Treasurer of the United States." The contracting officer may not limit the Government’s right to receive an equitable adjustment for any matter not addressed in the audit or any civil, criminal, or other administrative actions.
(c)(90)	Postaward audits with findings of defective pricing from DCAA, the GAO or the DoD/IG are subject to DoD Contract Audit Follow-up Policy as stipulated in DoDD 7640.2, Policy for Follow-up on Contract Audit Reports, AFFARS 5315.491-1(a) and 5315.491 of this supplement. Unique response time requirements and procedures for handling GAO and DoD/IG defective pricing audits are outlined in DoDD 7650.3, Follow-up on General Accounting Office, DoD Inspector General and Internal Audit Reporting, and AFFARS 5315.491-10.
(d)(90) Immediately upon receipt of a defective pricing audit, the contracting officer shall provide a copy to the contract audit follow-up focal point. The focal point shall log the audit report into the local tracking system.
(91) Audit report findings shall be submitted to the contractor for concurrence or comment. Give the contractor 30 days to respond to the audit. Grant reasonable extensions for good cause. To expedite disposition, advise the contractor to submit a copy of their response to the cognizant contract auditor.
(92) The contracting officer should obtain audit review of the contractors comment and any certified offsets. DCAA auditors shall not review an offset on contracts awarded after 14 Dec 87 until the contractor provides the Government with a certificate of entitlement as required by 10 U.S.C. 2306a. When the objective has been established and an independent review of the objective accomplished (as required by AFFARS 5315.491-6(b)), resolution has occurred. Communicate the resolution date and objective amount to the audit follow-up focal point immediately upon their occurrence.
(93) Once the contracting officer has settled or has otherwise disposed of the defective pricing issues, the contracting officer prepares and distributes the negotiation memorandum to the auditor (DCAA, DoD/IG, or GAO), the audit follow-up focal point, and the administrative contracting officer. Provide a copy of the distributed contract modification to the contract audit follow-up focal point and the administrative contracting officer.
(90)	Contracting officers shall:
(1) Ensure that defective pricing adjustments (excluding interest) are reflected in automated procurement history records for repetitive spares. Also, ensure that adjustments made to the record are made to all units, in each contract line item significantly impacted by the defective pricing.
(2) Inform the contract audit follow-up focal point of the receipt and current status, through disposition, of all defective pricing audits. This shall include specific notification of any changes to questioned cost agreed to by the auditor as a result of resolution and disposition.
(91)	The SCCO shall consider designating a defective pricing advisor to provide counsel and training to the contracting officer on the processing, resolution and disposition of defective pricing cases, including review of resolution/disposition documentation, and the contract modification before they are finalized. (92) No negotiated settlement agreement with a contractor shall waive the rights of the Government for future defective pricing claims or otherwise restrict the Government’s rights to conduct audits under the same or other contracts. Goods and services shall not be accepted as settlement of a defective pricing case. No settlement agreement shall be made contingent upon the granting of a deferred payment agreement under FAR 32.613 or its supplements. Offsets of understated costs caused by incomplete or inaccurate cost or pricing data in the same proposal can only be applied to reduce defective pricing liability and not justify a net upward price adjustment or reopening of negotiations. The collection of interest on overpayments cannot be waived or offset. An offer to waive contractor claims on unrelated contracts shall not be accepted as consideration or as an offset against amounts due the Government for defective pricing on the instant contract.
5315.407-2 Make-or-buy programs.
(d)(2)	Capacity shall include ability to support surge and mobilization needs identified by the contracting officer. Also address impact on critical and strategic materials, and critical forms and parts.
(d)(90)	Insert the provision at 5352.215-9013, Make-or-Buy Program, substantially as written, in Section L when submission of a Make-or-Buy Program is required in accordance with FAR 15.407-2.
(f)(90)	The contracting officer shall request administrative contracting officer comment on the prospective contractor's Make-or-Buy program.
5315.407-3 Forward pricing rate agreements.
(90)	When a FPRA has not been established, use the FPRRs to the maximum extent possible. Also, when using a rate other than an established FPRR, discuss the reason with the administrative contracting officer during fact-finding, but before clearance. Address reasons for not using an FPRR in both the clearance session and the PNM.
5315.407-4 Should-cost review.
(b)(2)(90)	Each contract proposal over $100M that meets the criteria in FAR 15.407-4(b)(2), as supplemented, shall be reviewed to determine if a Should-Cost Analysis is appropriate. The SCCO determines when the review should be conducted to obtain significant savings on initial production contracts, contract options, or follow-on production contracts. The following factors should also be considered.
(A)	There are known problems at the contractor’s facility that may contribute to increased costs (example, excess manufacturing capability or history of quality or procurement system problems).
(B)	There is a large volume of Government business in a contractor facility that could benefit from the implementation of should-cost recommendations.
(C)	The SCCO or designee organizes and conducts the Should-Cost Review using AFPAM 64-112, Should-Cost Review Guide.
5315.407-90 Formula pricing agreements (FPAs).
5315.407-90-4 Responsibilities.
(a)(1)	The SCCO is the approval level for FPAs.
(2)	The contracting officer is responsible for furnishing a copy of the approved FPA to HQ AFMC/PKP.
5315.407-91 Follow-up on contract audit reports.
5315.407-91-3 Responsibilities.
(b)	The MAJCOM responsibilities designated in AFFARS 5315.491-3(b) are delegated to the SCCO. RCS:DD-IG(SA)1580, Policy for Follow-up on Contract Audit Reports, applies and shall be submitted through the PK Audit Reporting System.
(1)	The Chief of Pricing, Finance and Specialized Policy Branch, HQ AFMC/PKPC, is the designated contract audit follow-up official responsible for managing the command's contract audit follow-up program.
5315.490 Reopener clauses.
(a)	Insert in Section H a reopener (savings) clause only in unusual situations where a significant cost element or event cannot be reasonably estimated and mutually agreed upon.
(b)	Consider the limited availability of expiring year funds to cover upward adjustments, along with the associated risks of a potential unfunded contingent liability and an Anti-Deficiency Act violation when drafting a reopener clause. Sufficient funds must be committed to cover the reasonably expected liability of any upward adjustable reopener clause.
(c)	Ensure controls are established to track the contractor’s compliance with the clause’s definitization milestones and negotiate at the earliest opportunity.
SUBPART 5315.6—UNSOLICITED PROPOSALS
5315.606-90 Air Force procedures.
(a)	Procedures for receipt and disposition of unsolicited proposals are contained in AFMC Pamphlet 64-101, Unsolicited Proposal Guide, available on the WWW (http://afmc.wpafb.af.mil/pdl/afmc/pam/64series/64_101/64-101.doc ).
5315.9000	Purpose and applicability.
The primary function of the Ombudsman is to hear concerns about specific issues in acquisitions and to communicate these concerns to senior management personnel for the particular acquisition. The Ombudsman must act in a manner that does not compromise the interested party. If requested, anonymity will be maintained. The Ombudsman shall not usurp normal procurement authority (e.g., program director, contracting officer, and source selection authority). The Ombudsman must remain impartial and, therefore, shall not serve as a member of the acquisition team for source selections conducted under this part, including, but not limited to, being a member of the PRAG, SSAC, SSET or as the SSA.
5315.9001 Procedures.
(a)	The Center Commander shall appoint an experienced senior official(s) as the Ombudsman. The Ombudsman will have sufficient authority to call upon other resources of the activity to accomplish the mission.
(b)	The Ombudsman shall:
(1)	work with acquisition personnel to resolve issues raised by interested parties;
(2)	report only to the DAC, Center Commander, or PEO; and
(3)	inform the commander or PEO, as required, of issues raised and actions taken.
(c)	Consistent with security requirements, the Ombudsman shall have access to the appropriate offices and be allowed to collect all relevant facts to resolve issues raised by interested parties. Ombudsmen are granted access to proprietary information. Source selection information must be obtained through the contracting officer (See AFFARS 5315.207).
(d)	Identify the Ombudsman in the initial Commerce Business Daily (CBD) announcement of the acquisition (e.g., Requests for Information, solicitation, Sources Sought Synopses) by including a statement similar to the one prescribed at 5305.207(f)(90). Also, either include the same statement, substantially as written, in solicitation executive summary or cover letters or include the provision at 5352.215-9016, Acquisition Ombudsman, substantially as written, in Section L.
5332.702-90 Policy for funding contracting actions (other than Operational Contracting - see AFFARS 5332.790).
Satisfy one of the conditions in (a) through (e) below before issuing a solicitation. Insert the provision 5352.232-9000, Notice of Funding Status, in Section L when applicable.
(a)	Funds have been certified as being available.
(b)	Funds shall be obligated by delivery orders and not by a contract resulting from the solicitation.
(c)	The solicitation is for an incrementally funded R&D or O&M contract before assurance of funds availability and the initiating and approving authorities determine that the requirement will probably not be cancelled.
(d)	The solicitation is for an FMS requirement and issued in advance of a firm and funded requirement, including Letter of Acceptance.
(e)	In exceptional situations, prior to program approval or formal funding of the requirement, the System Program Director (for PEO/DAC programs) shall provide written approval prior to solicitation release. For Other Contracting, the Center Commander, with the authority to redelegate, shall provide written approval prior to solicitation release.
5332.703 Contract funding requirements.
5332.703-1 General
(1)(iii)	The authority to approve the use of incremental funding for fixed-price base service or hazardous/toxic waste remediation contracts is delegated to the SCCO.
5332.703-90 Committing funds and processing purchase requests (PRs and MIPRs).
Funding procedures are found in DFAS-DE 7220.2-M, Chapter 10, Purchase Request (PR) Function and AFI 65-601, Volume I, Budget Guidance and Procedures.
5332.705 Contract clauses.
5332.705-2 Clauses for limitation of cost or funds.
(c)	Insert the clause at 5352.232-9001, Implementation of Limitation of Funds, in Section B of all incrementally funded cost-reimbursement solicitations and contracts to implement paragraph (b) of FAR 52.232-22, Limitation of Funds.
5332.790 Base contract funding.
(90)	A purchase request for minor construction, repair, or maintenance of real property (facility projects) shall be supported by a statement that sufficient funds are held in reserve by the using activity major command, and that such funds shall be made available when the amount of the low acceptable bid or proposal is identified. The statement is made by the Base Civil Engineer and Base Finance Officer on the AF Form 9, Request for Purchase, that funds shall be available.
5332.791 Rough Order of Magnitude (ROM) estimate profile provision.
(a)	The contracting officer may insert the provision at 5352.232-9002, Rough Order of Magnitude (ROM) Estimate Profile, substantially as written, in Section L to provide offerors program funding estimates for their consideration in proposal development. Do not use this provision if funding considerations are otherwise addressed in the solicitation as a basis for award.
(b)	Ensure the funding information provided does not exceed 6 years consistent with the current Future Years Defense Program (FYDP) since this provision is mainly intended for large multiple-year systems acquisitions. The provision includes a total ROM dollar amount as well as ROMs and corresponding percentage amounts by fiscal year.
(c)	Cite the total ROM amount whenever the provision is included in the RFP; however, only use the ROMs by fiscal year if the contract is anticipated to be incrementally funded. The program manager is responsible for providing the ROM numbers to the contracting officer.
(d)	Ensure any changes to funding information during the RFP/award process are conveyed to all offerors and, if appropriate, the offerors have an opportunity to update their proposals.
AFMC Form
Contractor Invention Monitoring
5327.303
AFMCI 23-101, Air Force Provisioning Instruction, Atch 7, Appendix 7
Surplus Material Worksheet
5311.302-91(f)
Price Negotiation Memorandum (Price Analysis)
5315.406-90(a)
Price Negotiation Memorandum (Cost Analysis Without Cost or Pricing Data)