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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

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Acquisition University

Presented by

Competition Management Office

January 2004

course objectives
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
Competition ManagementOur 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), 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.
who we are
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
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
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 required1
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
  • J&A Format and Content
  • SAMPLE FORMAT—See Student Handout
j 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
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:
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 as
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 as1
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
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 as
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
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
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
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
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,
  • 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 of market 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
  • See the Student Handout
mrr cd for long term contracts
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 deficiencies
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
Contact Us
  • Appendix A - a list of CMO POCs by weapon system.
  • If you have a general questions or concerns email the CMO:
  • Walk-ins are still welcomed!