JUSTIFICATION AND APPROVALFOR OTHER THAN FULL AND OPEN COMPETITION

Market Research/ Commerciality Determination

JUSTIFICATION AND APPROVALFOR OTHER THAN FULL AND OPEN COMPETITION

Market Research/ Commerciality Determination

Acquisition University

Presented by Competition Management Office

January 2004

Course ObjectivesCourse Objectives

• Provide guidance and instruction on how to prepare quality J&As

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

Competition ManagementOur Mission

Competition ManagementOur Mission

• Management of a comprehensive competition program

• Responsive cost-effective spare parts acquisition program

• Commercial/Non-developmental Item Program

Competition AdvocateCompetition Advocate

• Public Law 98-369: Competition in Contracting Act (CICA), 1984 Each MSC shall have an Advocate for Each MSC shall have an Advocate for Competition responsible for challenging barriers and promoting Competition responsible for challenging barriers and promoting full and open competition while challenging specifications and full and open competition while challenging specifications and restrictive need statements.restrictive need statements.

• Public Law 103-355: Federal Acquisition Streamlining Act (FASA), 1994 Advocates for Advocates for Competition …shall promote the acquisition of commercial Competition …shall promote the acquisition of commercial items …and challenge burdensome contract clauses.items …and challenge burdensome contract clauses.

• Public Law 104-106: Federal Acquisition Reform Act (FARA), 1996 …shall ensure that the requirement to obtain …shall ensure that the requirement to obtain full and open competition is implemented in a manner that is full and open competition is implemented in a manner that is consistent with the need to efficiently fulfill the Government’s consistent with the need to efficiently fulfill the Government’s requirements.requirements.

Who We AreWho 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

Justification and ApprovalsJustification and Approvals

• Who’s job is it to promote competition?

• When is a J&A required?

• When is a J&A not required?

• J&A format-paragraph by paragraph review/ instruction

Justification and Approvals(continued)

Justification and Approvals(continued)

• J&A approval levels

• What documents need to be included in the J&A file?

• Who is responsible for the J&A?

• Urgent J&As

• When is an amended J&A required?

• Class J&As

• J&As for long-term contracts

Who’s Job Is It to Promote Competition?

Who’s 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

When Is a J&A Required?When Is a J&A Required?

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

7 Exceptions to Full & Open Competition

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.

When Is a J&A Not Required?When Is a J&A 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

When is a J&A Not Required?When is a J&A 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

J&A FormatJ&A Format

• J&A Format and Content http://www.redstone.army.mil/cgi-bin/casl/index.pl

• SAMPLE FORMAT—See Student Handout

J&A Approval LevelsJ&A Approval Levels

• $500,000 <

• $500,001 - $10,000,000

• $10,000,001 -$50,000,000

• CO’s certification

• Competition or the Alternate

• Principal Assistant Responsible for Contracting (PARC )-Ms. L. Marlene Cruze and AMCOM Deputy Commander- Mr. James L. Flinn III.

J&A Approval Levels(continued)

J&A 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@saalt.army.mil.

What Documents Need to Accompany the J&A ?

What Documents Need to Accompany the J&A ?

• 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

Urgent J&AsUrgent J&As

• 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

Urgent J&AsUrgent J&As

• 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

When Is an Amended J&A Required?

When Is an Amended J&A 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).

Class J&AsClass J&As

• 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

J&As - Long-Term ContractsJ&As - Long-Term Contracts

• Recent trends – J&As for long-term contracts-partnering

contracts for 5-10 years– Lifecycle J&As for LRIP through Production

(14 year)

• Reasonableness should be exercised

Long-Term J&As –Our Concerns

Long-Term J&As –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 - Nat’l Def Auth Act of 2004

Common DeficienciesCommon Deficiencies• Control numbers missing

• System/program supported not indicated.

• Type of pricing arrangement not indicated.

• Information from the MRR/CD not in J&A.

• Synopsis publication date not in J&A.

• SOI/SOU is not attached to J&A.

• 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.

• J&A has not been reviewed by the legal office prior to being sent to CMO

Market Research & Commerciality Determination

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

Why Buy Commercial Items?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.

When Is a MRR/ CD Required?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

Who Does Market Research?Who Does Market Research?

• AFARS 5110.002(b):– Program managers – Requiring activity.

• Requirements personnel and CO(KO) must work together.

What Is the Purpose ofMarket Research?

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

MR Results Are Used To…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

How Much MR Is Enough? How Much MR Is Enough?

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

MRR/ CD Format/ Instruction MRR/ CD Format/ Instruction

• The sample format – http://www.redstone.army.mil/cgi-bin/casl/

index.pl

• See the Student Handout

MRR/CD for Long-TermContracts

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

Commerciality Determination and Certification (CDAC) System

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

Common MRR/CD DeficienciesCommon 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 J&A or does not agree with information in the J&A.

Contact UsContact Us

• Appendix A - a list of CMO POCs by weapon system.

• If you have a general questions or concerns email the CMO: cmo@redstone.army.mil

• Walk-ins are still welcomed!