Acquisition University Presented by Competition Management Office January 2004

1. JUSTIFICATION AND APPROVALFOR OTHER THAN FULL AND OPEN COMPETITIONMarket Research/ Commerciality Determination Acquisition University Presented by Competition Management Office January 2004

2. 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)

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

4. Competition Advocate • Public Law 98-369: Competition in Contracting Act (CICA), 1984Each 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), 1994Advocates 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.

5. 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

6. 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

7. 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

8. 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

9. When Is a J&A Required? • Any time you contract without providing for full and open competition based on one of seven exceptions/circumstances

10. 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.

11. 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

12. 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

13. J&A Format • J&A Format and Content http://www.redstone.army.mil/cgi-bin/casl/index.pl • SAMPLE FORMAT—See Student Handout

14. $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

15. 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.

16. 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

17. 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

18. 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

19. 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).

20. 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

21. 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

22. 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

23. Common Deficiencies • System/program supported not indicated. • Control numbers missing • 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

24. 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

25. 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.

26. 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

27. Who Does Market Research? • AFARS 5110.002(b): • Program managers • Requiring activity. • Requirements personnel and CO(KO) must work together.

28. 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

29. 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

30. How Much MR Is Enough? • The extent of market research will vary, depends on: • Urgency • Estimated dollar value • Complexity • Past experience

31. MRR/ CD Format/ Instruction • The sample format • http://www.redstone.army.mil/cgi-bin/casl/index.pl • See the Student Handout

32. 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

33. 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

34. 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.

35. 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!