JUSTIFICATION AND APPROVAL FOR OTHER THAN FULL AND OPEN COMPETITION Market Research Commerciality De

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JUSTIFICATION AND APPROVALFOR OTHER THAN FULL
AND OPEN COMPETITIONMarket Research/
Commerciality Determination

• Acquisition University
• Presented by
• Competition Management Office
• January 2004

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Course Objectives

• Provide guidance and instruction on how to
  prepare quality JAs
• Provide guidance and instruction on how to
  prepare quality Market Research Report/
  Commerciality Determinations (MRR/CD)

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Competition ManagementOur Mission

• Management of a comprehensive competition program
• Responsive cost-effective spare parts acquisition
  program
• Commercial/Non-developmental Item Program

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Competition Advocate

• Public Law 98-369 Competition in Contracting
  Act (CICA), 1984 Each MSC shall have an
  Advocate for Competition responsible for
  challenging barriers and promoting full and open
  competition while challenging specifications and
  restrictive need statements.
• Public Law 103-355 Federal Acquisition
  Streamlining Act (FASA), 1994 Advocates for
  Competition shall promote the acquisition of
  commercial items and challenge burdensome
  contract clauses.
• Public Law 104-106 Federal Acquisition Reform
  Act (FARA), 1996 shall ensure that the
  requirement to obtain full and open competition
  is implemented in a manner that is consistent
  with the need to efficiently fulfill the
  Governments requirements.

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Who We Are

• Mr. Wade Griffin- Manager - Competition Advocate
• Ms. Rebecca Pratcher- Alternate Competition
  Advocate
• Ms. LaQuandis Baldwin- Clerk
• Mr. Victor Kerns- Alternate Competition Advocate/
  General Engineer
• Mr. Shelley Muhammad- Logistics Mgmt Specialist
• Ms. Sharon Blackwell- Procurement Analyst
• Mr. Ernie Robinson- Procurement Analyst
• Mr. Russ Hickam- Procurement Analyst
• Ms. Cathy Richardson- Procurement Analyst
• Mr. Harold Jones Procurement Analyst

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Justification and Approvals

• Whos job is it to promote competition?

• When is a JA required?

• When is a JA not required?

• JA format-paragraph by paragraph review/
  instruction

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Justification and Approvals(continued)

• JA approval levels

• What documents need to be included in the JA
  file?

• Who is responsible for the JA?

• Urgent JAs

• When is an amended JA required?

• Class JAs

• JAs for long-term contracts

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Whos Job Is It to Promote Competition?

• Competition Management
• Contracting Officers
• FAR 6.101
• 10.U.S.C. 2304 and 41 U.S.C. 253 contracting
  officers shall promote and provide for full and
  open competition
• FAR 6.303-1shall not award any other contract
  without providing for full and open competition
  unless
• Justifies in writing
• Certifies justification
• Obtains the required approvals

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When Is a JA Required?

• Any time you contract without providing for full
  and open competition based on one of seven
  exceptions/circumstances

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7 Exceptions to Full Open Competition

• 6.302-1 Only one responsible source
• 6.302-2 Unusual and compelling urgency.
• 6.302-3 Industrial mobilization engineering,
  developmental, or research capability or expert
  services.
• 6.302-4 International agreement.
• 6.302-5 Authorized or required by statute.
• 6.302-6 National security.
• 6.302-7 Public interest.

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When Is a JA Not Required?

• When you have Full and Open Competition

• FAR 6.001
• Contracts awarded using simplified acquisition
  procedures
• Contracts awarded using contracting procedures
  are expressly authorized by statute
• Contract modifications, - exercise of priced
  options that were evaluated and within the scope
  of an existing contract
• Orders placed under requirements contracts or
  definite-quantity contracts
• Orders placed under indefinite-quantity contracts
  
• Orders placed against task order and delivery
  order contracts

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When is a JA Not Required?

• Far 6.200
• Establishing or maintaining alternative sources
• Set-asides for small business concerns
• Section 8(a) competition
• Set-asides for HUB Zone small business concerns

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JA Format

• JA Format and Content http//www.redstone.army.m
  il/cgi-bin/casl/index.pl
• SAMPLE FORMATSee Student Handout

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JA Approval Levels

• 500,000
• 500,001 - 10,000,000
• 10,000,001 -50,000,000

• COs certification
• Competition or the Alternate
• Principal Assistant Responsible for Contracting
  (PARC )-Ms. L. Marlene Cruze and AMCOM Deputy
  Commander- Mr. James L. Flinn III.

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JA Approval Levels(continued)

• 50,000,000
• Justification Review Document (JRD)
• Approved Acquisition Plan,
• Transmittal memo signed HCA
• Forward electronically as Word document
  attachments to Headquarters, Department of the
  Army, E-Mail PSStaff_at_saalt.army.mil.

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What Documents Need to Accompany the JA ?

• Technical and Requirements Certification
  Procurement History Commerciality Determination

• Legal review

• Statement of Impact (SOI)/ Statement of Urgency
  (SOU)

• Justification Review Document (JRD)

• Approved Acquisition Plan

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Urgent JAs

• Urgency exception
• Clearly demonstrate that the United States
  Government is or will be injured if immediate
  contract action is not taken.
• Injury can be monetary or mission impacting
• Must be directly related to your immediate
  requirement.
• Signed Statement of Urgency or Statement of
  Impact required

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Urgent JAs

• CMO logistics management specialist
• Logistics review of asset position
• Determines the quantity justified as urgent.

• A high priority designation alone will not
  justify the use of urgency.

• Post-award approval is not automatic.

• Criteria apply in both pre- and post-award
  environments

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When Is an Amended JA Required?

• AFARS 5106.303-1-90
• An increase in the dollar value beyond the
  authority of the previous approving official
• A change in the competitive strategy
• A change in requirements
• The contracting officer shall document any other
  significant change in the dollar value in the
  contract file.
• Prepare amended justifications -6.303-2-90(b)(3).

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Class JAs

• AFARS 5106.303-1
• Contracts to be awarded in successive fiscal
  years
• The requirements and quantities included in the
  Future Years Defense Plan (FYDP)
• Costs have been specifically identified.
• Must address every contract (action) in detail
• Must include only those supply or service
  components that are, and will clearly remain sole
  source
• FAR 6.304
• Approved in writing IAW agency procedures

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JAs - Long-Term Contracts

• Recent trends
• JAs for long-term contracts-partnering contracts
  for 5-10 years
• Lifecycle JAs for LRIP through Production (14
  year)
• Reasonableness should be exercised

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Long-Term JAs Our Concerns

• Major changes or program revisions
• Competition and breakout will not be reviewed.
• Missed opportunities to expand the vendor base
  and save money.
• HQ DA may restrict
• FYDP
• 5 years - Natl Def Auth Act of 2004

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Common Deficiencies

• Control numbers missing

• System/program supported not indicated.

• Type of pricing arrangement not indicated.

• Information from the MRR/CD not in JA.

• Synopsis publication date not in JA.

• SOI/SOU is not attached to JA.

• Part number, NSN, Noun, Quantity, System and
  total dollar amount is not on the approval page.

• CASL publication date not indicated

• No explanation provided when a past source will
  not be solicited.

• JA has not been reviewed by the legal office
  prior to being sent to CMO

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Market Research Commerciality Determination

• Why buy Commercial Items?

• When is a MRR/CD required?

• Who does the market research?

• What is the purpose of Market Research and how
  much research is enough?

• MRR/ CD format- paragraph by paragraph guidance/
  instruction

• MRR/CD for long-term contracts

• Commerciality Determination And Certification
  (CDAC) System

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Why Buy Commercial Items?

• It is the law
• Public Law 103-355,
• 1994 FEDERAL ACQUISITION SREAMLINING ACT
• Federal Acquisition Regulation (FAR)
• Implemented fully the commercial item emphasis of
  the Federal Acquisition Streamlining Act.

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When Is a MRR/ CD Required?

• Market research conducted and documented
  acquisitions or 25,000
• MR 12 months old.
• Commerciality Determination required for
  acquisitions
• Competitive or noncompetitive
• Materiel or services

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Who Does Market Research?

• AFARS 5110.002(b)
• Program managers
• Requiring activity.
• Requirements personnel and CO(KO) must work
  together.

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What Is the Purpose ofMarket Research?

• FAR 10.000
• To arrive at the most suitable approach to
  acquiring, distributing, and supporting supplies
  and services.
• To determine if commercial items or
  nondevelopmental items are available to meet the
  Government's needs

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MR Results Are Used To

• Determine if sources capable of satisfying the
  agency's requirements exist
• Determine the practices of firms engaged in
  producing, distributing, and supporting
  commercial items
• Determine whether bundling is necessary and
  justified

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How Much MR Is Enough?

• The extent of market research will vary, depends
  on
• Urgency
• Estimated dollar value
• Complexity
• Past experience

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MRR/ CD Format/ Instruction

• The sample format
• http//www.redstone.army.mil/cgi-bin/casl/index.pl
  
• See the Student Handout

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MRR/CD for Long-TermContracts

• Can be done for long-term contracts
• Must be current and no more than 12 months old.
• Annual updates to your MRR/CD must be conducted
  and processed in order

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Commerciality Determination and Certification
(CDAC) System

• Automated system MRR/CD for spares.
• Review and approval process is paperless
• Commercial items procured
• Requirements not forwarded to the CMO
• A wavier not required

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Common MRR/CD Deficiencies

• Person who conducted the research is not
  identified in paragraph 6

• Requirement has not been published in CASL

• The CASL publication date is inaccurate or
  omitted.

• Explanation provided in paragraph 8 does not
  explain the commerciality decision

• Information in the MRR/CD is not summarized in
  the JA or does not agree with information in the
  JA.

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Contact Us

• Appendix A - a list of CMO POCs by weapon system.
• If you have a general questions or concerns email
  the CMO cmo_at_redstone.army.mil
• Walk-ins are still welcomed!