Fam 103 Week 3

Federal Acquisition Regulations (FAR)

Federal Acquisition Regulation

Provides uniform policies & procedures for acquisition by all executive agencies

Department of Defense: DFARS

Air Force: AFFARS

Competition in Contracting Act

Promote full and open competition when feasible

True

Describes the relationship between the Gov't and the prime contractor

1. Full & Open

2. Full & Open after exclusions: set asides

3. Other than Full & Open: 7 exceptions

1. Only person who enters into a contract on behalf of the Gov't

2. Authority to ener into, administer, terminate contracts

3. Holds a warrant: A certificate of appointment

4. Ensures funds are available

5. Ensure contractors receive impartial, fair, and equitable treatment

6. Safeguards the interests of the Gov't

1. Writes the contract or modification

2. Maintain the Official Contract File

3. Deal with routine aspects of planning, formation, and administration

• PCO in training

• Does not hold a warrant

1. Fixed-priced

2. Cost-reimbursement

The contractor MUST deliver what is spelled out in the contract

Procurement Contracting Officer

The Gov't pays the contractor's allowable, incurred costs as provided in the contract. BEST EFFORT

• Purpose is to allow the Gov't to respond to unforeseen emergencies by authorizing the contractor to start work immediately prior to receiving a full proposal

• A.K.A. Letter Contract

• Used on an infrequent basis for clearly defined, urgent requirements.

Undefinitized Contract Action

1. Other Transaction (OT) "agreements"

2. Indefinite Delivery Contracts

Lower cost & schedule, better performance

Request for Proposal

Released to solicit proposals from interested parties

1. Statement of Objectives

2. Selective Specifications

3. Performance Requirements from user

4. Instructions to offerors

5. Evaluation factors

6. Program Work Breakdown Structure (PWBS)

Identifies criteria the Gov't will use to evaluate proposals.

SOO - tell WHAT the Gov't want

SOW - tell HOW to accomplish the work

To select the source whose proposal offers the best value to the Gov't

Statement of Objectives

Statement of Work

Instructions to offerors providing guidance for preparing proposals or responses to Gov't RFP

Defense Contract Management Agency

• Performs contract administration support for all military services

• Form, fit, function, quality, and dollar value

• Re-compete and put on a new contract

• Out-of-scope contract modification if out-of-scope but requirement is sole-source to same contractor

Oral or written communication between CO or Gov't official that is taken as direction to change by the contractor

An agreement that is not binding solely because the Gov't representative who made it lacked authority to enter into an agreement on behalf of the Gov't

A contracting officer's fix to an unauthorized commitment so the contractor can be paid for work done

Provide knowledge of system design, capabilities, and limitations to the acquisition community to improve system performance before production and deployment, and to the user community for optimizing system operations and sustainment after production and development

•DT&E – Test and evaluation conducted to evaluate design approaches & predict integrated system operational performance in the intended environment, and identify system problems to allow for early and timely resolution

•OT&E – The field test, under realistic combat condition, of any item of weapons for the purpose of determining the effectiveness and suitability of the weapons, equipment, or munitions for use in combat by typical military users.

Works together as a cross-functional team to map out the grand strategy for testing and evaluating a system

Developmental Test and Evaluation

Operational Test and Evaluation

•Qualification Test and Evaluation (QT&E) - Tailored form of DT&E conducted on Commercial-Off-The-Shelf (COTS), Non-Developmental Items (NDI) and Gov't furnished equipment (GFE). Used when buying commercial items.

•Product-Related Testing - Conducted on production items to demonstrate specs &performance requirements are fufilled.

•Live Fire Test & Evaluation (LFT&E) - testing requirements for lethality and survivability of a weapon system.

•Joint Interoperability Test (JIT) Certification: certify programs comply with IT and National security systems protocols.

•Foreign Comparitive Testing (FCT): managed by USD AT&L test conducted on friendly countries equipment that may meet DoD need.

•TEMP – To integrate the requirements, acquisition, T&E, systems engineering, and sustainment strategies with all T&E schedules, funding, and resources

•Test Plans – Give the “who, what, when, where, and how” for the daily execution of testing.

•Program Introduction Document – Formally introduce the test program to the LDTO.

•Sustainment of Capability – The LDTO’s response to the PID

•Purpose: Provides a logical process for determining our needs and the resources required to meet those needs.

•Key objectives: produce a plan, program, and budget that provides the best mix of forces, equipment, and support within fiscal constraints.

PLANNING

•National Security Strategy (NSS) – comprehensive report on the national security of the US that is submitted to Congress along with the President’s Budget

•National Defense Strategy (NDS) – supports the NSS by establishing a set of overarching defense objectives that guide the Department’s security activities and provide direction for the NMS

•National Military Strategy(NMS) – conveys the Chairman of the Joint Chief of Staff (CJCS) message to the Joint Force on the strategic direction the Armed Forces of the US should follow to support the NSS and NDS

•Quadrennial Defense Review (QDR) – authored every four years and directs DoD to undertake a wide-ranging review of strategy, programs, and resources.

PROGRAMMING

•Program Objective Memorandum – identifies total Air Force Program requirements for the FYDP

BUDGETING:

•Justification Books – known as R-docs & P-docs. Support the PBR and PB cycles and for execution reviews (to compare planning to execution)

EXECUTION:

•AF Form 616 - Fund Cite Authorization used to request authority to cite funds or to issue authority to cite funds.

• Provides authority for Gov’t agencies to continue operations, pending passage of the fiscal year’s authorization and appropriations bill

• RULE 1: CRA applies to all appropriation accounts

• RULE 2: Each Service mush identify the funds needed to operate short term

• RULE 3: New programs cant start work

• RULE 4: Program’s funding and production levels are limited to the lower of these two items:

▪︎Last year’s level

▪︎This year’s Congressional Committee mark

Budget authority – allows organizations to spend Gov’t money

Commitment – administrative reservation of funds by the AF in response to some form of request to spend funds (ie a contract). Commitment is a plan

Certification – part of the commitment process. A double check that the plan is legal.

Obligations – a legal reservation of funds is made, tying the Gov’t to a liability.

Expenditure – Charge against available funds. Represents the presentation of a check or electronic transfer of funds to the performer of the work.

Outlay – Withdrawal from the federal treasury. Occurs when a vendor cashes the expenditure check and money flows form the Treasury to the vendor or supplier

Active – are those that are still available for obligation

Expired – those available for expenditure or adjustment but not obligation

Canceled – (closed) funds are no longer available for expenditure or adjustment

Funds can expire or get used without you knowing and it can adversely affect your current fiscal year’s budget. Several different fiscal year budgets are being managed at one time.

Anti-Deficiency Act – Prohibits the mishandling of Gov’t funds. You can’t spend more budget authority than you have been allocated.

Bona Fide Needs Rule – Sets the year (or time) restriction. You must use the money in the appropriate fiscal year

Misappropriation Act – Congress has approved specific amounts of money for specific purposes or programs. The money must be spend on exactly what Congress has approved

Authorize entry into the Production and Deployment phase or for Limited Deployment

Produce and deliver requirements-compliant products to receiving military organizations

When operating command formally accepts responsibility and accountability from acquiring command for the operation and organizational maintenance of the system or equipment acquired

CONCERNS

•Support Equipment and Tools, spare parts, technical data, facilities, support structure, training

As quantity of a product doubles, the man-hours per unit epended producing the product decreases at a fixed rate

Metrics used as indicators of problems with the contractor's quality, delivery status and cost.

•AT & FAT Identify and eliminate production flaws.

AT is the point where the Gov't accepts ownership & responsibility of the system

FAT is appropriate when

• Manufacturer never built product before

•Manufacturer has build but design, process, or facility change. Production discontinued for an extended period of time

HQW

Identify process quality problems. Used to re-validate the product and identify and correct some process problems

GFP is property that is in the possession of or directly acquired by the gov't and subsequently made available to the contractor.

ADVANTAGES

Reduce technical risk, cost, delivery schedule

1. Material

2. Special Tooling

3. Special Test Equipment

4. Equipment

5. Real Property

Ensure the design is supportable and the support is designed

1. Product Support Management: Ensure support ability is considered throughout lifecycle

2. Design Interface: need to integrate logistics readiness ect. into system/equip design

3. Sustaining Engineering: ensure continued operation and maintenance or a system

4. Support Supply: Support for end/support items

5. Maintenance & Planning: documentation of mx concepts for a process. O-LEVEL, I-LEVEL, D-LEVEL

6. Packaging, Handling, Storage,& Transportation (PHS&T): Ensures proper handling

7. Technical Data Management/Technical Orders: address tech data needed to operate/maintain system

8. Support Equipment/Automatic Test Systems (SE/ATS): Ensures SE/ATS is supportable

9. Training: resources & training to operate/support/maintain system

10. Manpower & Personnel: ppl required to operate support and maintain system

11. Facilities: permanent, semi-permanent, or temporary property assets required to operate and support system

12. Computer Resources: facilities, hard/software docs etc needed to operate and support computer systems

Loss of manufacturers of items or suppliers of items/raw material that may cause material Shortages that endanger a weapon/equipment system's development, production, or post-production support capability

Continuous and collaborative set of activities that establishes and maintains readiness and the operational capability of a system, subsystem, or end item throughout its life cycle

Sustainment strategy that places primary emphasis on optimizing system support to meet the needs of the warfighter

Performance Based Logistics

ORGANIC: Maintenance performed by Gov't

CONTRACT: pre-operational support (POS), Interim contract support (ICS), contractor sustainment support (CSS), and total contractor training (TCT)

Provide DoD an organic capability to overhaul, modify, and sustain new and existing weapons systems as well as perform weapon system commodity management

Air Logistics Complexes

CORE: DoD maintains core logistics capability that is government-owned and Gov't operated to ensure timely response in an emergency

50/50: no more than 50% of funds can be spent on non federal depot maintenance

1. Air Force DSOR Identifies assignment using SORA.

2. Consider interservice depot maintenance (army/marine)

1. Temporary-1 (T1) – Temp add or remove equipment to provide increased capability for a special mission

2. Temporary-2 (T2) – modification for Test/Evaluation.

3. Permanent (P) – Make permanent changes to correct safety or material deficiencies, improve reliability and maintainability, or to add or remove capability.

1. Identifying the need for modification

2. Documenting the need

a. ICD – large mod then go through DAS

b. Form 1067 – mod doc for minor mods

3. Board Actions

a. Configuration Review Board (CRB) – validates the need of a modification for minor mods

4. Implement Modifications

a. Research & development

b. Test and evaluation

c. Procurement of the complete mod kit

d. Installation of the kit

• Deter/defend against aggression

• Strong/cohesive defense arrangements

• Promotes regional stability

• Strengthen economies of countries

• Human rights/democratic values

1. President – determines eligibility (179/195 countries currently eligible)

2. Secretary of State – Oversees FMS – Approves individual programs

3. Secretary of Defense – responsible for identifying and justifying allied military requirements and for implementing FMS programs

4. Congress – Authorizes and appropriates funds for USF-financed Security Assistance Programs and has oversight role on the sale of defense articles and services to foreign countries and international organizations

5. Defense Security Cooperation Agency (DSCA) – Directs, administers, and supervises the execution of all Security Assistance programs for the DoD.

6. Security Cooperation Office (SCO) – DoD org overseas with the primary responsibility for interfacing with the host nation on SA and SC programs. Military members/part of country team

7. Deputy Under Secretary of the Air Force for International Affairs (SAF/IA) – Develops, implements, manages and supervises FMS SA programs for the Air Force

8. Air Force Security Assistance and Cooperation (AFSAC) Directorate – Responsible for managing all AF FMS case actions until final closure. Overall management of the case

9. Air Force Security Assistance Training (AFSAT) – Responsible for managing all AF Security Assistance training

10. Security Assistance Program Manager (SAPM) – Responsible for the day-to-day execution of FMS programs.

1. Country “X” sends Letter of Request LOR to SAF/IA

2. SAF/IA acknowledges receipt, validates the LOR with help from the program office,

• Congress Notified (if necessary),

• As required, AFSAC creates: pricing & Availability and Letter of Acceptance LOA

3. DSCA signs/send LOA to country

4. Country sends signed copy of LOA to USG and sends a deposit to DFAS

•DoD 5500.07-R Joint Ethics Regulation (JER)

•Office of Gov’t Ethics (OGE)

•Contact JAG or organization’s designated ethics official

Gifts from contractors, conflicting financial interests, impartiality issues, misuse of position, use of Gov’t resources, Fundraising, Political activities, employment restrictions, official travel benefits