PGI 215.407-2 Make-or-buy programs.
(d) Solicitation Requirements. Consider the following factors when deciding whether to request a make-or-buy plan—
(1) The prime contractor’s assumption of risk;
(2) The prime contractor’s plant capacity;
(3) The prime contractor’s degree of vertical integration;
(4) The prime contractor’s internal resources;
(5) The anticipated contract type;
(6) The complexity, uniqueness, or configuration maturity associated with the end item or its subsystems;
(7) Critical path items;
(8) The impact on contract overhead rates with respect to maintaining work in-house;
(9) The industrial base that could potentially satisfy some system requirements, based on market survey;
(10) Proprietary data and/or trade secrets;
(11) Potential product quality concerns associated with items that would be subject to subcontracting;
(12) Integrated master schedule timelines and their tolerances for variation;
(13) The availability and experience of program office personnel to credibly analyze and evaluate a submission; and
(14) Socioeconomic considerations, e.g. small business or labor surplus area concerns.
(f) Evaluation, negotiation, and Agreement. When a make-or-buy plan is required, listed below are factors that may be considered when evaluating a submission—
(1) Prime contractor past performance, especially with respect to subcontract management;
(2) Prime contractor make-or-buy history;
(3) Adequacy of contractor’s existing make-or-buy processes, including cost and technical risk considerations;
(4) Component availability through existing sources, e.g. available inventory, or other Government contracts;
(5) Prime contractor plant capacity;
(6) The adequacy of the prime contractor’s technical, financial and personnel capabilities; and
(7) Prime contractor justification that is provided with respect to items it does not normally make.