DFARS Part 17

Previous PageTable Of Contentshttp://farsite.hill.af.mil/vfdfar1.htmNext Page



TABLE OF CONTENTS

SUBPART 217.1--MULTIYEAR CONTRACTING
217.103 Definitions
217.170 All Multiyear Contracts
217.171 Multiyear Contracts for services
217.172 Multiyear Contracts for supplies
217.173 Multiyear Contracts for weapon systems.
217.174 Multiyear Contracts that employ Economic Order Quantity procurement.

SUBPART 217.2--OPTIONS
217.202 Use of options.
217.208 Solicitation provisions and contract clauses.
[added per DFARS Case 97-D314, D.L. 98-004
[217.207 Exercise of Options]
217.208-70 Additional clauses.

SUBPART 217.4--LEADER COMPANY CONTRACTING
217.401 General.

SUBPART 217.5--INTERAGENCY ACQUISITIONS UNDER THE ECONOMY ACT
217.503 Determinitations and findings requirementsl.
217.504 Ordering procedures.

SUBPART 217.6--MANAGEMENT AND OPERATING CONTRACTS
217.600 Scope of subpart.

SUBPART 217.70--EXCHANGE OF PERSONAL PROPERTY
217.7000 Scope of subpart.
217.7001 Definitions.
217.7002 Policy.
217.7003 Purchase request.
217.7004 Solicitation and award.
217.7005 Solicitation provision.

SUBPART 217.71--MASTER AGREEMENT FOR REPAIR AND ALTERATION OF VESSELS
217.7100 Scope of subpart.
217.7101 Definitions.
217.7102 General.
217.7103 Procedures.
217.7103-1 Content and format.
217.7103-2 Period of agreement.
217.7103-3 Solicitations for job orders.
217.7103-4 Award of a job order.
217.7103-5 Emergency work.
217.7103-6 Repair costs not readily ascertainable.
217.7103-7 Modification of master agreements.
217.7104 Contract clauses.

SUBPART 217.72--BAKERY AND DAIRY PRODUCTS
217.7200 Scope.
217.7201 Contract requirements for dairy products.
217.7202 Contract type.
217.7203 Contract clauses.

SUBPART 217.73--IDENTIFICATION OF SOURCES OF SUPPLY
217.7300 Scope.
217.7301 Policy.
217.7302 Procedures.
217.7303 Solicitation provision.

SUBPART 217.74--UNDEFINITIZED CONTRACT ACTIONS
217.7400 Scope
217.7401 Definitions.
217.7402 Exceptions.
217.7403 Policy.
217.7404 Limitations.
217.7404-1 Authorization.
217.7404-2 Price ceiling.
217.7404-3 Definitization schedule.
217.7404-4 Limitation on obligations.
217.7404-5 Exceptions.
217.7404-6 Allowable profit.
217.7405 Definitizations.
217.7406 Contract clauses.

SUBPART 217.75--ACQUISITION OF REPLENISHMENT PARTS
217.7500 Scope of subpart.
217.7501 General.
217.7502 Spares acquisition integrated with production (SAIP).
217.7503 Acquisition of parts when data is not available.
217.7504 Limitations on price increases.

SUBPART 217.76--CONTRACTS WITH PROVISIONING REQUIREMENTS
217.7600 Scope of subpart.
217.7601 Definitions.
217.7602 Contracting requirements.
217.7602-1 Contractual provisions.
217.7602-2 Issuance of provisioned items orders.
217.7603 Contract administration requirements.
217.7603-1 Provisioning conferences.
217.7603-2 Contract administration office monitoring.
217.7603-3 Negotiating and executing supplemental agreements.

SUBPART 217.77--OVER AND ABOVE WORK
217.7700 Scope of subpart.
217.7701 Procedures.
217.7702 Contract clause.

PART 217 SPECIAL CONTRACTING METHODS

SUBPART 217.1--MULTIYEAR CONTRACTING

217.103 Definitions.

Advance procurement, as used in this subpart, means an exception to the full funding policy that allows acquisition of long lead time items (advance long lead acquisition) or economic order quantities (EOQ) of items (advance EOQ acquisition) in a fiscal year in advance of that in which the related end item is to be acquired. Advance procurements may include materials, parts, components, and effort that must be funded in advance to maintain a planned production schedule.

217.170 All multiyear contracts.

(a) Before a multiyear contract is awarded, the cost of that contract shall be compared against the cost of an annual procurement approach, using a present value analysis. The multiyear contract shall not be awarded unless the analysis shows that it results in the lowest cost (Section 9021 of Pub. L. 101-165 and similar sections in subsequent Defense appropriations acts).
(b) The head of the agency shall provide written notice to the Committees on Appropriations and National Security in the House of Representatives and in the Senate at least 10 days before termination of any multiyear contract (Section 9021 of Pub. L. 101-165 and similar sections in subsequent Defense appropriations acts).
(c) The Secretary of Defense may instruct the head of the agency proposing a multiyear contract to include in that contract negotiated priced options for varying the quantities of end items to be procured over the life of the contract (10 U.S.C. 2306b(j)).
(d) Every multiyear contract must comply with FAR 17.104(c), unless an exception is approved through the budget process in coordination with the cognizant comptroller.

217.171 Multiyear contracts for services.

(a) 10 U.S.C. 2306(g).

(i) Operation, maintenance, and support of facilities and installations.
(ii) Maintenance or modification of aircraft, ships, vehicles, and other highly complex military equipment.
(iii) Specialized training requiring high quality instructor skills (e.g., training for pilots and other aircrew members or foreign language training).
(iv) Base services (e.g., ground maintenance, in-plane refueling, bus transportation, and refuse collection and disposal).
(2) This authority may be used as long as the contract does not extend beyond 5 years.
(b) 10 U.S.C. 2829.

(2) This authority may be used as long as the contract does not extend beyond 4 years.
(c) Award of a multiyear contract for services requires a written determination by the head of the agency (10 U.S.C. 2306(g)(1)) that--

217.172 Multiyear contracts for supplies.

(b) A multiyear contract for supplies may be used if, in addition to the conditions listed in FAR 17.105-1(b), the use of such a contract will promote the national security of the United States.

217.173 Multiyear contracts for weapon systems.

(a) As authorized by 10 U.S.C. 2306b(a) and subject to the conditions in paragraph (b) of this section, the head of the agency may enter into a multiyear contract for--
(1) A weapon system and associated items, services, and logistics support for a weapon system; and
(2) Advance procurement of components, parts, and materials necessary to manufacture a weapon system, including advance procurement to achieve economic lot purchases or more efficient production rates (see 217.174 regarding economic order quantity procurement).
(b) The following conditions must be satisfied before a multiyear contract may be awarded under the authority described in paragraph (a) of this section:

(i) Quantify the savings that can be achieved;
(ii) Explain any other benefits to the Government of using the multiyear contract;
(iii) Include details regarding the negotiated contract terms and conditions; and
(iv) Be submitted to OUSD(A&T)DP for transmission to Congress via the Secretary of Defense and the President (10 U.S.C. 2306b(i)(2)).

217.174 Multiyear contracts that employ economic order quantity procurement.

(a) The head of the agency shall provide written notice to the Committees on Appropriations and National Security in the House of Representatives and in the Senate at least 30 days before awarding--

(b) Before initiating an advance procurement, the contracting officer shall verify that it is consistent with DoD policy (e.g., Part 3 of DoD 5000.2-R, Mandatory Procedures for Major Defense Acquisition Programs (MDAPs) and Major Automated Information System (MAIS) Acquisition Programs, and the full funding policy in Volume 2A, Chapter 1, of DoD 7000.14-R, Financial Management Regulation).

SUBPART 217.2--OPTIONS

217.202 Use of options.

[added per DFARS Case 97-D314, D.L. 98-004]
217.207 Exercise of options.

217.208 Solicitation provisions and contract clauses.
Sealed bid solicitations shall not include provisions for evaluations of options unless the contracting officer determines that there is a reasonable likelihood that the options will be exercised (10 U.S.C. 2301 (a)(7)). This limitation also applies to sealed bid solicitations for the contracts excluded by FAR 17.200.

217.208-70 Additional clauses.

SUBPART 217.4--LEADER COMPANY CONTRACTING

217.401 General.
When leader company contracting is to be considered, take special effort to select a small disadvantaged business (SDB) concern as the follower company. Where other than an SDB is selected as the follower company, the contracting officer shall document the contract file to reflect--

SUBPART 217.5--INTERAGENCY ACQUISITIONS UNDER THE ECONOMY ACT

217.503 Determinations and findings requirements.

(c) If requested, the contracting officer who normally would contract for the requesting activity should advise in the determination process.

217.504 Ordering procedures.

(a) When the requesting agency is within DoD, a copy of the executed D&F shall be furnished to the servicing agency as an attachment to the order. When a DoD contracting office is acting as the servicing agency, a copy of the executed D&F shall be obtained from the requesting agency and placed in the contract file for the Economy Act order.

SUBPART 217.6--MANAGEMENT AND OPERATING CONTRACTS

217.600 Scope of subpart.
FAR Subpart 17.6 does not apply to DoD.

SUBPART 217.70--EXCHANGE OF PERSONAL PROPERTY

217.7000 Scope of subpart.
This subpart prescribes policy and procedures for exchange of nonexcess personal property concurrent with an acquisition. Section 201(c) of the Federal Property and Administrative Services Act of 1949, 63 Stat. 384, as amended (40 U.S.C. 481(c)) permits exchange of personal property and application of the exchange allowance to the acquisition of similar property. This subpart does not authorize the sale of nonexcess personal property.

217.7001 Definitions.
As used in this subpart,

217.7002 Policy.
DoD policy is to exchange, rather than replace, eligible nonexcess property whenever exchange promotes economical and efficient program accomplishment. Exchange policy, authority, and applicability aregoverned by--

217.7003 Purchase request.
Ensure that the requiring activity provides all of the following in support of the purchase request--

217.7004 Solicitation and award.

217.7005 Solicitation provision.
Use the provision at 252.217-7002, Offering Property for Exchange, when offering nonexcess personal property for exchange. Allow a minimum of 14 calendar days for the inspection period in paragraph (b) of the clause if the exchange property is in the continental United States. Allow at least 21 calendar days outside the United States.

SUBPART 217.71--MASTER AGREEMENT FOR REPAIR AND ALTERATION
OF VESSELS

217.7100 Scope of subpart.
This subpart contains acquisition policies and procedures for master agreements for repair and alteration of vessels.

217.7101 Definitions.

217.7102 General.

217.7103 Procedures.

217.7103-1 Content and format.

by (Authorized Individual)

217.7103-2 Period of agreement.

217.7103-3 Solicitations for job orders.

217.7103-4 Award of a job order.
Award job orders in accordance with FAR Subparts 14.4 or 15.10.

217.7103-5 Emergency work.

217.7103-6 Repair costs not readily ascertainable.
If the nature of any repairs is such that their extent and probable cost cannot be ascertained readily, the solicitation should--

217.7103-7 Modification of master agreements.

217.7104 Contract clauses.

SUBPART 217.72--BAKERY AND DAIRY PRODUCTS

217.7200 Scope.
This subpart provides special policies and requirements for acquisition of perishable bakery and dairy products.

217.7201 Contract requirements for dairy products.

217.7202 Contract type.
Normally use requirements contracts for bakery and dairy products. Other indefinite delivery contracts andother contract types may be used as appropriate.

217.7203 Contract clauses.

SUBPART 217.73--IDENTIFICATION OF SOURCES OF SUPPLY

217.7300 Scope.
This subpart implements 10 U.S.C. 2384. It contains policy and procedures for requiring contractors to identify the actual manufacturer of supplies furnished to DoD.

217.7301 Policy.
Contractors shall identify their sources of supply in contracts for supplies. Contractor identification of sources of supply enables solicitation, in subsequent acquisitions, of actual manufacturers or other suppliers of items. This enhances competition and potentially avoids payment of additional costs for no significant added value.

217.7302 Procedures.

217.7303 Solicitation provision.

SUBPART 217.74--UNDEFINITIZED CONTRACT ACTIONS

217.7400 Scope.
This subpart prescribes policies and procedures implementing 10 U.S.C. 2326.

217.7401 Definitions.
As used in this subpart--

217.7402 Exceptions.
The following undefinitized contract actions (UCAs) are not subject to this subpart, but the contracting officer should apply the policy to them (and to changes under the Changes clause) to the maximum extent practicable--

217.7403 Policy.
DoD policy is that undefinitized contract actions shall--

217.7404 Limitations.

217.7404-1 Authorization.
The contracting officer shall obtain approval from the head of the contracting activity before--

217.7404-2 Price ceiling.
UCAs shall include a not-to-exceed price.

217.7404-3 Definitization schedule.

217.7404-4 Limitation on obligations.
The Government shall not obligate more than 50 percent of the not-to-exceed price before definitization. However, if a contractor submits a qualifying proposal before 50 percent of the not-to-exceed price has been obligated by the Government, then the limitation on obligations before definitization may be increased to no more than 75 percent (see 232.102-70 for coverage on provisional delivery payments).

217.7404-5 Exceptions.

217.7404-6 Allowable profit.
When the final price of a UCA is negotiated after a substantial portion of the required performance has been completed, the head of the agency shall ensure the profit allowed reflects--

[see AFAC 92-49,B1]
217.7405 Definitizations
For each definitization modification, the contracting officer shall include all data required by 243.171.

217.7406 Contract clauses.

SUBPART 217.75--ACQUISITION OF REPLENISHMENT PARTS

217.7500 Scope of subpart.
This subpart provides guidance on additional requirements related to acquisition of replenishment parts (as defined in Appendix E).

217.7501 General.
Departments and agencies--

217.7502 Spares acquisition integrated with production (SAIP).

217.7503 Acquisition of parts when data is not available.
When acquiring a part for which the Government does not have necessary data with rights to use in a specification or drawing for competitive acquisition, use one of the following procedures in order of preference--

217.7504 Limitations on price increases.
This section provides implementing guidance for Section 1215 of Pub. L. 98-94 (10 U.S.C. 2452 note).

SUBPART 217.76--CONTRACTS WITH PROVISIONING REQUIREMENTS

217.7600 Scope of subpart.
This subpart contains contract requirements and procedures for items to be provisioned. For technical requirements of provisioning, see DoDD 4140.40, Provisioning of End Items of Material. For breakout requirements, see Appendix E.

217.7601 Definitions.
As used in this subpart,

217.7602 Contracting requirements.

217.7602-1 Contractual provisions.
Contracts containing provisioning requirements shall--

217.7602-2 Issuance of provisioned items orders.

217.7603 Contract administration requirements.

217.7603-1 Provisioning conferences.
When requested by the contracting officer or provisioning activity, the contract administration office shall assist the contracting officer or provisioning activity in scheduling and determining the types of provisioning conferences required, e.g., guidance meetings, long lead time items conferences, source coding meetings.

217.7603-2 Contract administration office monitoring.
The contract administration office (CAO) shall monitor contracts containing provisioning requirements. As a minimum the CAO shall--

217.7603-3 Negotiating and executing supplemental agreements.

SUBPART 217.77--OVER AND ABOVE WORK

217.7700 Scope of subpart.
This subpart prescribes policies and procedures for acquisition of over and above work.

217.7701 Procedures.

217.7702 Contract clause.
Use the clause at 252.217-7028, Over and Above Work, in solicitations and contracts containing requirements for over and above work, except as provided for in Subpart 217.71.

Previous PageTop Of PageTable Of Contentshttp://farsite.hill.af.mil/vfdfar1.htmNext Page