pgi_5317

Previous PageTable Of ContentsNext Page

AFFARS PGI 5317
Special Contracting Methods

Table of Contents

Click any column header below to sort by that column.

PGI Paragraph

MAJCOM

Paragraph Title

PGI 5317.204-90

AFICC

Contracts

PGI 5317.204-90

AFMC

Contracts

PGI 5317.502-2

SMC

The Economy Act

PGI 5317.7402-90

AF

Exceptions

PGI 5317.7404-1

SMC

Authorization

PGI 5317.7404-3-90

AFMC

Definitization Schedule

PGI 5317.7502-90

AFMC

General

PGI 5317.7506-90

AFMC

Spare Parts Breakout Program

PGI 5317.7601-90

AFMC

Provisioning

PGI 5317.9000

AF

Associate Contractor Agreements

AF PGI 5317
Special Contracting Methods


AF PGI 5317.7402-90 Exceptions

(a) This guidance is for the acquisition of long-lead items initiated with appropriated advance procurement funds to protect production end item delivery schedules. (For long-lead items procured with other than advance procurement funds, contracting officers should follow standard contracting procedures, including undefinitized contract action (UCA) procedures prescribed in DFARS 217.74.)

(b) Contracting for long-lead items using congressionally appropriated advance procurement funds is a special contracting method used to protect planned production schedules for major system acquisitions. This approach provides Congress with the flexibility to make decisions on annual funding levels while providing a measure of program stability. Advance procurement funds need to be included in the budget request. If authorized by Congress, funds are made available well in advance of full production program release.

(1) A definitive contract is preferred. When it is possible to award a definitive contract using advance procurement funds, the contracting officer follows normal contracting procedures.

(2) It is usually not practical to initiate the long-lead effort using fully definitized contract procedures when final production quantities remain unknown. Therefore, procedures similar to those for a UCA are used to initiate the long-lead effort. In recognition of this unique situation, Congress has exempted long-lead efforts initiated with advance procurement funds from the requirements of 10 U.S.C. 2326 (see DFARS 217.74).

(3) After the award of the undefinitized long-lead contract, the contracting officer should make every effort to negotiate a definitive contract amount for the total contract effort based on the buy profile for which the advance procurement funds were authorized. The use of a flexible pricing approach such as pricing for a range in quantity or negotiating a pricing methodology that will allow for an extrapolation of a fixed-price is highly encouraged. These techniques greatly reduce reproposal activity and facilitate a quick reaction to variations in the related end item quantity between the planned and appropriated quantities. When this is not possible and delays in definitizing the contract result in termination liability exceeding the advance procurement funds, the use of procurement funds may be authorized to avoid production breaks. If procurement funds are added to the contract effort prior to definitization, the long-lead effort is then treated as a part of the production effort and is subject to all the procedures and reporting requirements governing UCAs covered in DFARS 217.74.

(1) Pre-award Steps:

(2) Components of the Undefinitized Long-Lead Contract:

(ii) A special contract requirement (Section H) clause that addresses the unique requirements of the long-lead effort should be included and should at a minimum:

(iii) A special contract requirement (Section H) clause that addresses suspension or reduction in progress payments for late submission of either the NTE proposal or the definitive price proposal for the total contract effort should be included and should address at a minimum:

(iv) A special contract requirement (Section H) clause that addresses the process for definitizing the long-lead contract. The clause should, as a minimum:

(3) Adding Procurement Funds when Termination Liability has Exceeded Obligated Advance Procurement Funds. If the undefinitized long-lead contract cannot be definitized before termination liability exceeds advance procurement funds, procurement funds may be obligated for the long-lead effort. Prior to obligating any procurement funds the contracting officer should:

(i) Obtain the approval of the original approval authority for the undefinitized long-lead contract. The request for approval should include:

(ii) Obtain a NTE proposal for the total contract effort and evaluate for reasonableness. After reaching agreement on the NTE, the contracting officer will incorporate it into the contract;

(iii) Evaluate the contractor’s revised termination liability estimate, and

(iv) Comply with all UCA requirements contained in DFARS 217.74. Previously obligated advance procurement funds will be combined with the procurement funds in establishing UCA obligation limitations. The 180-day definitization schedule begins when the procurement funds are obligated on the undefinitized long-lead contract.


AF PGI 5317.9000 Associate Contractor Agreements

“Associate Contractor Agreements” (ACA) are agreements between contractors working on government contracts or projects that specify requirements for them to share information, data, technical knowledge, expertise, or resources.

Prime contractor to subcontractor relationships do not constitute ACAs, and are not subject to this section’s requirements. The contracting officer may require ACAs when contractors working on separate Government contracts must cooperate, share resources or otherwise jointly participate in working on contracts or projects. The contractor should tailor each ACA to the requirements of the individual contracting situation and may consult with the contracting officer as required. Suggested Contract Language for Statement of Work or Performance Work Statement:

(a) The Contractor should enter into Associate Contractor Agreements (ACA) for any portion of the contract requiring joint participation in the accomplishment of the Government’s requirement. The agreements should include the basis for sharing information, data, technical knowledge, expertise, and/or resources essential to the integration of the (insert name of the program or project), to ensure the greatest degree of cooperation for the development of the program to meet the terms of the contract. Associate contractors are listed in (g) below.

(b) ACAs should include the following general information:

(1) Identify the associate contractors and their relationships.

(2) Identify the program involved and the relevant Government contracts of the associate contractors.

(3) Describe the associate contractor interfaces by general subject matter.

(4) Specify the categories of information to be exchanged or support to be provided.

(5) Include the expiration date (or event) of the ACA.

(6) Identify potential conflicts between relevant Government contracts and the ACA; include agreements on protection of proprietary data and restrictions on employees.

(c) Provide a copy of such agreement to the Contracting Officer for review before execution of the document by the cooperating contractors.

(d) The Contractor is not relieved of any contract requirements or entitled to any adjustments to the contract terms because of a failure to resolve a disagreement with an associate contractor.

(e) Liability for the improper disclosure of any proprietary data contained in or referenced by any agreement rests with the parties to the agreement, and not the Government.

(f) All costs associated with the agreements are included in the negotiated cost of this contract. Agreements may be amended as required by the Government during the performance of this contract.

(g) The following contractors are associate contractors with whom agreements are required:

Contractor

Address

Program / Contract

     
     

AFICC PGI 5317
Special Contracting Methods


AFICC PGI 5317.204-90 Contracts

Enter relevant data into the Air Force [AFICC] MIPR Database Tool.

AFMC PGI 5317
Special Contracting Methods


AFMC PGI 5317.204-90 Contracts

Option clauses designed for contracts that include technical achievement milestones, such as first article approval, qualification test approval or other test and/or development demonstration events should use event-driven milestones for the option exercise window (e.g., completion of event XYZ or XX days after completion of event XYZ) in lieu of calendar-based dates (e.g., 15 Mar 2007).


AFMC PGI 5317.7404-3-90 Definitization Schedule

Requests for field pricing support should clearly indicate whether the action is undefinitized, so the field office can plan accordingly based on the definitization schedule.


AFMC PGI 5317.7502-90 General

(a) When the original system manufacturer (prime contractor) identifies its current vendor(s) as the actual manufacturer(s) for a spare part or piece of support equipment, and recommends procurement from that vendor, consider the vendor an approved source when the acquisition source list is restricted to approved sources only. Prior approval by the requirements activity is not required for these vendors when they are the actual manufacturers.

(b) The contracting officer will provide written notification to include the new vendor’s name, address, and CAGE code and any changes in the item description (e.g., part number, noun, NSN, etc.) to the requirements activity and the Competition Advocate whenever the prime recommends such sources for use in developing the source list on future acquisitions.


AFMC PGI 5317.7506-90 Spare Parts Breakout Program

(a) Regulatory guidance for the Spare Parts Breakout program is provided by AFI 23-101 which states, “DoD components and field activities will develop annual buy thresholds for breakout screening that are consistent with economic considerations and resources.”

(b) Acquisitions with an annual buy value or Purchase Request value of less than $10,000 are exempt from Acquisition Method Code/Acquisition Method Suffix Code (AMC/AMSC) screening. This exemption do not preclude screening of any acquisition when circumstances warrant it, e.g., problem items with no sources or excessive prices.


AFMC PGI 5317.7601-90 Provisioning

See AFMCMAN 20-106 for guidance on provisioning and use of Provisioned Item Orders (PIOs) in acquiring initial support of USAF aerospace systems and equipment. The instructions apply to the provisioning activity, which processes the orders and contains information for the provisioning contracting officer.

SMC PGI 5317
Special Contracting Methods


SMC PGI 5317.502-2 The Economy Act

See the SMC Streamlined Guide for Military Interdepartmental Purchase Requests (MIPRs).


SMC PGI 5317.7404-1 Authorization

See SMC/CC memo on “Issuance of Undefinitized Contract Actions (UCAs)”, dated 30 Jun 2017.

Previous PageTop Of PageTable Of ContentsNext Page