JUSTIFICATION AND APPROVAL
FOR OTHER THAN FULL AND OPEN COMPETITION
Market Research/ Commerciality Determination
Acquisition University
Presented by
Competition Management Office
January 2004
Course 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 Management
Our Mission
• Management of a comprehensive
competition program
• Responsive cost-effective spare parts
acquisition program
• Commercial/Non-developmental Item
Program
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 Government’s
requirements.
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
Justification 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)
• 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?
• 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?
• Any time you contract without
providing for full and open
competition based on one of seven
exceptions/circumstances
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 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?
• 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 Format
• J&A Format and Content
http://www.redstone.army.mil/cgibin/casl/index.pl
• SAMPLE FORMAT—See Student
Handout
J&A Approval Levels
• $500,000 <
• CO’s certification
• $500,001 - $10,000,000
• Competition or the
Alternate
• $10,000,001 $50,000,000
• Principal Assistant
Responsible for
Contracting (PARC )-Ms.
L. Marlene Cruze and
AMCOM Deputy
Commander- Mr. James
L. Flinn III.
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 ?
• 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&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&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?
• 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 -6.303-290(b)(3).
Class 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 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
• 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 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
• 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?
• 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?
• 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?
• AFARS 5110.002(b):
– Program managers
– Requiring activity.
• Requirements personnel and CO(KO)
must work together.
What Is the Purpose of
Market 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…
• 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?
• The extent of market research will vary,
depends on:
– Urgency
– Estimated dollar value
– Complexity
– Past experience
MRR/ CD Format/ Instruction
• The sample format
– http://www.redstone.army.mil/cgibin/casl/index.pl
• See the Student Handout
MRR/CD for Long-Term
Contracts
• 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
• 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 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 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!