T1.13 - Metrics and Performance Management (Revision 4, February 2006) _{Revised 2/2006}    

Metrics and performance management tools provide systems that organize, integrate, and report program performance information. Program metrics and performance measurements should provide objective information that program and executive management need to make informed decisions that positively impact their business and engineering performance. Program performance measurement works best when it is considered to be a significant, integral part of project management. Like any management or technical tool, performance measurement cannot guarantee that a project will be successful. However, it does help the decision maker take a proactive approach in dealing with the critical issues inherent in project management. 

In addition to tracking program specific Technical Performance Measures (TPM), Key Performance Parameters (KPP), and a Network Schedule; the use of an Earned Value Management System (EVMS) for cost, schedule, and technical performance measurement and integration provides insight into overall project performance. The specifics of an EVMS performance based acquisition management system, as required by the Office of Management and Budget (OMB), are contained in American National Standard ANSI/EIA-748-A.  FAA earned value management guidance is provided in the FAA Earned Value Management Guide in FAST  . 

The EVMS generated performance measurement information is useful to both the FAA and the contractor because it provides visibility into program and contract performance that would otherwise be unavailable in this form. Appropriate selection and use of these tools enable program managers and contractor personnel to examine key contract indicators, assess contract performance and make critical decisions in managing contracts.

The EVM Focal Point must be involved prior to issuing a screening information request (SIR) to review and assess contracting strategy and plan for EVM implementation consistent with the JRC-approved program Attachment 3, Implementation Strategy and Planning, section 5.6, Program Control. 

a. EVMS applications that are consistent with the American National Standard EIA-748-A Industry Standard Guidelines provide detailed contract information that is appropriate for major contracts or contracts that are considered high value, critical, or high risk to the agency. The projects should include full EVMS compliance in these types of contract to provide the project team and Contracting Officer sufficient level of insight into contractor's performance and progress, while a tailored application of the Industry Standard Guidelines is appropriate for projects and efforts that are not in the above categories.

b. Cost Performance Report (CPR): Projects should specify reporting requirements in the contract, and use DID DI-MGT-81466A, tailored as appropriate, as a format for information generated under EVMS requirements of clause 1.13-2, EVMS. The program official should tailor the specific CPR reporting requirements to obtain:

• Information necessary to manage the contract
• Reporting formats to provide performance data consistent with the program metrics and performance measurement plan
• Reporting frequency to provide timely performance reporting.

c. SIRs should be structured to include separately priced contract line item(s) for EVM reporting requirements.

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T1.15 - Legal Coordination Guidance (Revision 1, October 2005)      

a. FAA acquisition actions can raise significant legal issues. For example, although pursuant to 49 U.S.C. §40110, FAA is exempt from federal acquisition statutes and regulations, other statutes and court decisions require FAA to demonstrate a rational basis, supported by substantial evidence, for acquisition actions. In addition, many laws and regulations enacted for purposes other than procurement apply to FAA acquisitions.

b. Therefore, the service organization will coordinate acquisition actions with FAA counsel on an ongoing basis throughout the acquisition lifecycle, as specified in Section 4. It is the responsibility of agency counsel to represent FAA’s legal interests within the service organization and, exercising independent professional judgment, advise the service organization concerning legal issues, including, the legality and integrity of acquisition actions, and represent the service organization in litigation and other legal matters.

c. This guidance establishes legal coordination as the agency practice for acquisition matters.

This Guidance applies to all FAA acquisition matters, at all stages of the acquisition lifecycle.

a. As used in this Guidance, the term "agency counsel" means:

(1) for acquisition matters arising at, or referred to, Headquarters, the Assistant Chief Counsel, Procurement Law Division, AGC-500; and

(2) for acquisition matters arising at, or referred to, a Region or Center, the responsible Regional or Center Counsel.

b. As used in this Guidance, the term "coordinate" means: soliciting the opinion and recommendations of agency legal counsel reasonably prior to taking acquisition actions, e.g., after providing agency counsel accurate and complete information in sufficient time for review and counsel.

c. As used in this Guidance, the term "service organization" means: any organization that delivers a service, whether a business unit, project office, program directorate, or integrated product team, or whether engaged in air traffic services, security, regulation, certification, operations, commercial space transportation or airport development.

d. As used in this Guidance, the term "represent" means: recommending an appropriate legal position for the service organization regarding an acquisition matter, and, as appropriate, presenting this position to other parties, such as in administrative or judicial proceedings, or in communications, discussions, or negotiations with another party during a protest, dispute, or claim.

  a. Coordination between the Service Organization and Agency Counsel

(1) The service organization will coordinate acquisition actions with FAA counsel on an ongoing basis throughout the acquisition lifecycle. Agency counsel will timely respond to the service organization with accurate and effective legal advice that is consistent with legal mandates and relevant to the agency's business discretion. Agency counsel may, at his or her discretion, establish general time frames for such responses, which counsel will make every effort to meet, taking into account the agency counsel's workload and competing priorities. Counsel will describe and interpret legal issues involved in the matter; identify and assess the legal risk of a particular proposed decision; evaluate alternative courses of action; and identify potential illegal or improper actions.

(2) In case of a conflict between FAA's legal interests and those of a service organization, agency counsel's client is the FAA, and not the service organization. In addition, each agency counsel is bound by independent professional ethical obligations and responsibilities as a licensed attorney.

(3) The contracting officer will document the acquisition file with agency counsel's opinion and recommendations. The contracting officer will document the reasoning/decision process when choosing not to follow the agency counsel's recommendations.

b. General Coordination Guidance for Acquisition Actions

The service organization will coordinate with agency counsel on acquisition actions (including supporting documents) with an estimated total value greater than $100,000. This coordination guidance applies to acquisition actions including, as examples, but not limited to:

(1) Required planning documents (e.g., acquisition strategy paper);

(2) Solicitations, including Screening Information Requests, amendments, and other public announcements, such as market surveys;

(3) Responses to market surveys, including capability statements;

(4) Market analyses;

(5) Evaluation of offers or proposals (including preparation and review of technical, cost, past performance, management and other evaluation plans and reports);

(6) Communications with offerors on acquisition matters having legal implications;

(7) Contract awards, regardless of contract type, over the dollar value threshold specified above;

(8) Debriefings, including responses to inquiries regarding awards from parties other than the awardee;

(9) Task and delivery orders issued under contracts over the dollar value threshold specified above;

(10) Modifications under contracts that affect rights and obligations of either the Government or the contractor;

(11) Option exercises;

(12) Award fee determinations;

(13) Determinations as to contract adjustments;

(14) Contract terminations;

(15) Settlement of contract claims;

(16) Liquidated damages;

(17) Interpretation and determination of legal rights under contracts, orders or agreements;

(18) Communications with contractors, offerors, and other parties on acquisition matters having legal implications, including correspondence that might impact the rights and obligations of any party;

(19) Solicitation and contract matters involving rights in technical data, computer software, patents, copyrights, trade secrets and other forms of intellectual property, real estate, fiscal law, labor, environmental law, bankruptcy, anti-trust law, mergers and other non-procurement areas of law, affecting acquisitions;

(20) Debarments and suspensions, nondisclosure agreements, centers of excellence and individuals hired by contractors who received a "buy-out."

(21) Solicitation and contract matters involving state and local laws;

(22) Software license agreements;

(23) Purchases from government-wide schedules or vehicles;

(24) Interagency agreements;

(25) Grants (except Airport Improvement Grants; policy concerning legal review of AIP grants is or will be covered elsewhere);

(26) Cooperative agreements;

(27) Memoranda of agreement and memoranda of understanding;

(28) Franchises;

(29) Agreements made under "other transaction authority;"

(30) Unsolicited proposals;

(31) Determinations, findings, and justifications issued pursuant to the Acquisition Management System, or as required by statue or regulation;

(32) Proposed waivers and waivers of any portion of the Acquisition Management System;

(33) Any other matters that in the opinion of agency counsel has an impact on the legality of an acquisition or legal consequences.

c. Coordination Guidance for Noncompetitive Procurements

The service organization will coordinate with agency counsel on non-competitive procurements with an estimated total value greater than $10,000, and on procurements with an estimated total value greater than $10,000 under which a waiver is sought from the Acquisition Management System's competition policy.

d. Coordination Guidance for Unauthorized Commitments, Personal Services, and Other Matters

The service organization will coordinate with agency counsel on the following matters, without dollar limitation:

(1) Freedom of Information Act, Trade Secrets Acts, and Privacy Act concerns relating to proposed release(s) of acquisition information;

(2) Matters involving the FAIR Act/A-76;

(3) Unauthorized agency commitments;

(4) Proposals for innovative financing, such as advance payments, shared costs, or user fees;

(5) Personal services contracts;

(6) Consulting and advisory services

(7) Matters relating to export controls or non-U.S. citizens;

(8) Matters involving information, personnel or physical security;

(9) Condemnations;

(10) Sufficiency of title in real estate acquisitions;

(11) Matters raising ethical or Procurement Integrity Act issues, or concerning conflicts of interest (personal and organizational), federal and state fraud statutes, or other federal and state criminal statutes.

(12) Policy memoranda, procedures, regulations, orders, and guidance concerning acquisition matters;

(13) Proposed legislation and testimony for legislative hearings on acquisition matters;

(14) Correspondence about acquisition matters with parties outside the agency, including Congress, the General Accounting Office, and other federal agencies, or correspondence under the signature of the Secretary, Deputy Secretary, Administrator, Deputy Administrator or Regional and Center Directors.

a. Agency counsel will represent the service organization in any protest of an award or other procurement action, and in contract claims, disputes, or controversies by and against the FAA, including all meetings, negotiations, discussions, or communications on the matter after an action has been filed in an administrative, judicial, or FAA forum.

b. Agency counsel will represent the service organization on behalf of the FAA in communications, negotiations, and meetings with other parties touching upon the legal rights and obligations of the parties, or where another party, including a government party, is expected to be represented by legal counsel.

At Headquarters, the Assistant Chief Counsel for Procurement, and at Regions and Centers, the Region or Center Counsel, may make written exceptions to the Coordination Policy described in Section 1.15, adjust dollar minimums, or in appropriate cases, waive the Coordination Policy.

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T3.1.3 Fundamental Principles (Revision 1, October 2005)      

a. Transactions relating to the expenditure of funds require the highest degree of public trust and an impeccable standard of conduct. The general rule is to strictly avoid any conflict of interest or even the appearance of a conflict of interest in FAA-contractor relationships.

b. The CO, other integrated product team members, or anyone directly involved in conducting a procurement are to comply with 5 CFR 2635, Standards of Ethical Conduct for Employees of the Executive Branch, and 18 U.S.C. 201-209, 216.

c. Letters of commendation to contractors or their employees must be reviewed by the Office of the Chief Counsel.  

d. FAA personnel should consult their cognizant legal counsel about any questions or issues pertaining to standards of conduct.

None applicable.

None applicable.

T3.1.4 Delegations (Revision 10, October 2008) _{Revised 10/2008}    

a. The Administrator has authority to enter into contracts, leases, grants, cooperative agreements, and other transactions, and to delegate authority for managing FAA’s contracting function to the FAA Acquisition Executive (FAE).  Based on the Administrator’s delegation, the FAE has authority to appoint, and redelegate contracting authority to, the Chief of the Contracting Office (COCO).  The COCO may redelegate his or her contracting authority to qualified individuals needed to perform FAA’s contracting and other procurement functions. (See AMS Procurement Toolbox Procurement Delegation of Authority).

b. Any delegation of authority to perform contracting and other procurement activities must be in writing and explicitly state the authority and limitations it conveys.  If specific authority is not included in the delegation, then that authority does not exist.

c. Demonstrated Need. Any delegation of authority to perform contracting or other procurement activities must be supported by a related need. 

(1) The level of delegated authority must be commensurate with the need in terms of cost, complexity and mission criticality.

(2) The delegation level may not exceed the demonstrated need. 

(3) Demonstrated need is the most important criteria to consider when delegating authority.

a.  The COCO is a position designated by the FAE that is delegated unlimited authority for procurement contract award and administration, leases, real estate transactions, cooperative agreements, non-Airport Improvement (AIP) grants, agreements, and other transactions.  The COCO, acting within the scope of the FAE’s delegation, manages day-to-day contracting functions for FAA.    

b. The COCO may redelegate contracting authority to qualified individuals, such as procurement and real property contracting officers, logistics management specialists, managers of the purchase card program, and other individuals.  These individuals must have required training, demonstrated knowledge, and adequate experience to enter into and administer legally binding transactions on behalf of the Government.  Except for the purchase card program managers, these individuals cannot redelegate their authority.  Before deciding to delegate contracting authority, the COCO considers the following criteria:

(1) There must be a demonstrated need for the authority requested. 

(2) The individual selected must meet the qualifications for the authority requested.  However, an individual’s qualifications, without a demonstrated need for the authority, are not sufficient reason to grant contracting authority.

(3) Other factors, such as organizational structure, total volume of the contractual actions, complexity and dollar value of the work involved, and aggregate value of the anticipated actions that the individual will be processing.

c. Specific responsibilities of the COCO include:

(1) Review/Approve Qualifications. The COCO reviews and approves qualifications, such as education, training, knowledge, and experience, of personnel being considered for appointment as a Contracting Officer (CO) or for other types of procurement authority.

(2) Delegate Authority. The COCO formally delegates contracting and other procurement authority in writing and maintains appropriate records of all delegations.

(3) Periodic Review. The COCO periodically reviews contracting and other procurement delegations to validate that the delegations remain appropriate and needed, reviews individual’s continuous learning to ensure requirements are being met, and periodically examines procurement actions to ensure authorized individuals do not exceed their delegated authority.  The COCO also reviews all Level I and II warrants at least annually to determine whether each CO maintained professional proficiency and otherwise remains qualified.  Level III warrants are reviewed at least every two years.

(4) Terminate Delegations. The COCO may terminate a CO warrant or other procurement authority at any time.  The termination is by letter, and states the general reason for termination and effective date, unless the original delegation provided for automatic termination.  If the COCO terminates delegated contracting authority prior to an automatic termination date, or when there is no automatic termination date, the written notice to the individual should provide enough time and sufficient instructions to ensure the individual does not make any unauthorized commitments.  Upon notification of the termination, the original warrant or certificate of appointment is annotated as “terminated” and includes the reasons for the termination.  Reasons for termination may include:

(a) The need for the delegated authority no longer exists.  For example, retirement, resignation, termination of employment, or an assignment to another position;

(b) Failure to comply with applicable requirements, limitations, policies, regulations, statutes, or delegated responsibilities;

(c) Maintenance training/certification requirements have not been met, or failure to maintain all standards after appointment; or

(d)   Violation of a material portion of the ethics guidance for Federal employees and/or standards of conduct for Department of Transportation employees.

(5)  Changes in Authority. The COCO modifies delegated authority by written notice in enough time and with sufficient instructions to ensure that the appointee does not make unauthorized commitments.  The COCO must document any changes in an individual’s contracting authority, such as an increase in the number of contract actions, number or complexity of requisitions, or other operational necessity.  Any increase or decrease in the dollar value or scope of an individual’s contracting authority requires issuing a new certificate of appointment or warrant and termination of the previous delegated authority.  

(6)  Waivers. The COCO may waive qualification standards if circumstances clearly dictate need for delegation of authority, but an employee does not fully meet required standards.  The waiver is conditional, identifies a duration, and states requirements that the individual must satisfy to be fully qualified. (See AMS Procurement Guidance T3.1.4:4)

a. Certification Levels.  There are three certification levels which apply to the 1102 series, which align with Office of Management and Budget’s (OMB) Federal Acquisition Certification in Contracting (FAC-C) guidelines for contracting professionals (http://www.fai.gov).  Unless otherwise prohibited by an existing Collective Bargaining Agreement, individuals must meet the training, education, and experience requirements as outlined below to qualify to serve in an 1102 series position.

b. Reference tables for current and previous 1102 series training and certification requirements are outlined below and summarized in Appendix 1 to this section.

c. Procedures for Obtaining 1102 Series Certification. The request for certification is submitted by the individual, through their immediate supervisor, to the COCO on an Application for FAA Acquisition Management System Certification in Contracting for 1102 Positions (see Procurement Forms).  The nominee’s supervisor forwards the nomination package to the COCO after ensuring the individual meets the training, education, and experience requirements commensurate with the proposed certification level.  The COCO:

(1) Reviews the request and supporting documentation for completeness;

(2) Evaluates the applicant’s education, acquisition experience, and training; and

(3) Approves or disapproves the certification application.

d. 1102 Series- Level I Requirements.

(1) Education.

(a) Possess a Bachelor’s degree with a major in any field; or

(b) Have at least 24 semester hours in any combination of the following fields: accounting, business, finance, law, contracts, purchasing, economics, industrial management, marketing, quantitative methods, or organization and management; or

(c) Meet an 1102 Exception Provision and occupied an 1102 series position at grades 5 thru 12 on January 1, 2000.

(2) Experience. Have a minimum of one year of current purchasing experience with progressively broader work assignments.  Current experience must have been gained within the last three years.

(3) Training Requirements. The core classes required for Level I 1102 Certification are:

(a) CON 100: Shaping Smart Business Arrangements;

(b) CON 110: Mission Support Planning (Online);

(c) CON 111: Mission Strategy Execution (Online);

(d) CON 112: Mission Performance Assessment (Online);

(e) CON 120: Mission Focused Contracting; and

(f) One elective.

e. 1102 Series- Level II Requirements. In addition to the training requirements for Level I 1102 Certification, each person must have:

(1) Education.

(a) Possess a Bachelor’s degree with a major in any field; or

(b) Have at least 24 semester hours in any combination of the following fields: accounting, business, finance, law, contracts, purchasing, economics, industrial management, marketing, quantitative methods, or organization and management; or

(c) Meet an 1102 Exception Provision and occupied an 1102 series position at grades 5 thru 12 on January 1, 2000.

(2) Experience. Have a minimum of two years of current purchasing experience with progressively broader work assignments.  Current experience must have been gained within the last five years.

(3) Training Requirements. The core classes required for Level II 1102 Certification are:

(a) CON 214: Business Decisions for Contracting (Online);

(b) CON 215: Intermediate Contracting for Mission Support;

(c) CON 216: Legal Considerations in Contracting (Online);

(d) CON 217: Cost Analysis and Negotiation Techniques (Online);

(e) CON 218: Advanced Contracting for Mission Support; and

(f) Two electives.

f. 1102 Series- Level III Requirements. In addition to the training requirements for Level I and II 1102 Certification, each person must have:

(1) Education.

(a) Possess a Bachelor’s degree with a major in any field; and

(b) Have at least 24 semester hours in any combination of the following fields: accounting, business, finance, law, contracts, purchasing, economics, industrial management, marketing, quantitative methods, or organization and management.

(2) Experience. Have a minimum of four years of current purchasing experience with progressively broader work assignments.  Current experience must have been gained within the last ten years.

(3) Training Requirements. The core classes required for Level III 1102 Certification are:

(a) CON 353: Advanced Business Solutions for Mission Support; and

(b) Two electives.

g. Electives. As agreed to by the employee and manager, electives may be any training course related to the employee’s job, those necessary for career development, or those used for cross training.  Electives may include no-cost distance learning, assignment-specific courses, or other training opportunities.

h. Continuous Learning. In addition to the 1102 series requirements detailed above, each person must complete 80 Continuous Learning Points (CLP) of training every two years in order to retain 1102 Certification.  Training completed to meet course requirements for level certification qualifies as continuous training. (CLP standards are available in Appendix 5)

i. Special In-Service Placement Provision to Education Requirement. Certain employees may be grandfathered for the basic educational requirements specified for the 1102 series.  Grandfathering does not apply to the training requirements.  All mandatory training prescribed for the employee’s current acquisition level must be satisfied in order to progress to the next acquisition level.

j. All training and education information relating to 1102 series personnel must be entered into the enterprise Learning Management System (eLMS) (https://elms.dot.gov/) and the Acquisition Career Management Information System (ACMIS) (https://admin.acmis.gov/).

a. Waivers to Standards for Certificates of Appointments/Warrants.  Under exceptional circumstances, an unusual need may dictate delegation of authority to an employee who does not meet certification standards.  In those rare circumstances where it is necessary to nominate a candidate who does not fully meet the standards, a written waiver request must be submitted for a conditional or permanent waiver.  Waivers can be issued for any or all training and education requirements.  All requests for a waiver must be made using a Request for Waiver to Training or Educational Standards for Procurement Personnel (Appendix 3) or a Request for Permanent Waiver to Training or Educational Standards for Procurement Personnel (Appendix 4).  The following is included in each request:

(1) Current training record;

(2) Evidence of existing level certifications; and

(3) Individual development plan (IDP) outlining specific actions to be taken to meet delegated authority level requirements.

b. Conditional Waivers.

(1) If an employee does not meet the minimum education/training standards, a conditional waiver may be requested.  A conditional waiver allows the employee to be temporarily promoted into a position not to exceed 24 months while he or she attempts to meet the standard.  The selecting official must use the format found in the Request for Waiver to Training or Educational Standards for Procurement Personnel (see Appendix 3 to this section). The request must be forwarded to the COCO for approval.

(2) If the COCO approves the waiver request, the employee will be placed in the position on a conditional basis for a period not to exceed 24 months.  The action will be processed in the form of a temporary promotion, and must be documented to clearly identify the length of the waiver and the requirements the employee must meet if selected for the position.  This data must be entered into eLMS.  A written plan must be signed by the employee and his or her supervisor and approved by the COCO.  The plan must specify:

(a) Requirements remaining to satisfy the new standard;

(b) When and how each requirement will be met; and

(c) The consequences if the requirements are not met.

(3) Normal regulatory requirements for processing temporary promotions apply to these actions.

(4) Usually, if the employee fails to meet the mandatory standard by the end of the conditional period, the temporary promotion will be terminated and the employee will be returned to his/her former position (or equivalent).

c. Permanent Waivers. Permanent waivers may be granted by the FAE.  The COCO must endorse the permanent waiver prior to forwarding the request to the FAE for approval.  The selecting official must use the format found in the Memorandum for Request for Permanent Waiver to Training or Educational Standards for Procurement Personnel (see Appendix 4 to this section).

d. Fulfillment. Fulfillment is the process by which acquisition workforce members may satisfy mandatory training requirements based on previous experience, education, and/or alternative training supported by Defense Acquisition University (DAU) Equivalency or Fulfillment programs (http://www.dau.mil/learning/appg.aspx).  The employee and supervisor must agree that the employee meets the newly established contracting competencies for each required course based on fulfillment, and supporting documentation will be forwarded to the COCO with the certification application for final consideration.

a. Certificate of Appointment. The COCO delegates contracting authority to procurement and real property COs through a written certificate of appointment, also known as a warrant.  This certificate of appointment authorizes the individual to legally bind FAA.  Warranted individuals cannot further delegate their warrant authority or “sign for” or over the name of another CO.

b. Limitations. Warrants define the dollar and scope limitations of the authority.  Warrants may be limited or unlimited.  A limited warrant states a total dollar limitation for each transaction.  The dollar value of a transaction includes the base year and all options, as defined by "total estimated potential value" in Appendix C of AMS policy.  An unlimited warrant allows transactions at any dollar value.  In addition to the dollar value, limited and unlimited warrants must expressly state any limitations of authority (other than limitations in applicable laws or regulations) and the specific types of transactions the CO is authorized to make.  Grants, cooperative agreements, and other transactions are excluded from delegated contracting authority for procurement and real property COs unless expressly stated in the warrant. (See Appendix 2 for 1102 series warrant standards)

c. Warrant Levels.  There are three CO warrant levels which apply to contracting authority.  The warrant levels align with the 1102 series certification levels.  These warrant levels do not apply to purchase card delegations.  Unless otherwise prohibited by an existing Collective Bargaining Agreement, individuals must meet the training, education, and experience requirements as outlined in Appendix 1 to this section, to qualify for an acquisition position as a warranted CO.

d. Procedures for Obtaining Certificate of Appointment (Warrant). The request for a certificate of appointment/warrant is prepared on an Application for FAA Acquisition Management System Certification in Contracting for 1102 Positions (see Procurement Forms) by the individual and submitted to his or her immediate manager.  The individual’s manager reviews the package to ensure that the individual meets the training, education, and experience requirements commensurate with the proposed delegated threshold.  If the manager concurs, he or she forwards the nominee’s package to the COCO.  The COCO reviews the request and supporting documentation for completeness and evaluates the applicant’s acquisition experience, training, and evidence of certification.  If the COCO concurs, he or she signs the request and certificate of appointment.  The certificate of appointment issued to the individual includes a warrant number, dollar limit of warrant authority, and any other applicable limitations, such as restrictions to certain types of transactions.

e. Discrete Authority for Grants, Cooperative Agreements and Other Transactions.   The  Administrator’s authority to award and administer grants, cooperative agreements and other transactions is delegated to the FAE, who subsequently redelegated this authority to the COCO (see AMS Procurement Toolbox Procurement Delegation of Authority), subject to the below restrictions: 

(1) COCO Redelegation.  The may redelegate this authority to procurement and real property COs and other individuals with required knowledge, experience, training, and skills for awarding and administering these types of transactions.  All delegations must be in writing and expressly state the types of transactions and any limitations;

(2)  Administrator’s Review. Individuals delegated this authority must ensure that prior to award, the Administrator is notified and allowed to review any non-Airport Improvement Program (AIP) grant, cooperative agreement, or other transactions with a cumulative value of $10 million or more, or with significant Congressional interest. (See AMS Procurement Guidance T3.8.1 Agreements, Cooperative Agreements, Gifts & Bequests, for additional information.); and

(3) Certificate of Appointment. The written certificate of appointment must expressly state authority to execute grants, cooperative agreements and other transactions.

f. Displaying Warrant and Other Certificate of Appointment. COs must prominently display the warrant or other certificate of appointment so that information about their authority and any limitations is readily available to the public and FAA personnel.

g. Skills Currency/Continuous Learning. To maintain the delegated contracting authority, individuals must maintain their appropriate 1102 series certification level.  As detailed previously, acquisition professionals must earn 80 continuous learning points (CLP) of skills currency training every two years.  COCOs monitor continuous learning requirements for individuals delegated contracting authority.  If an individual does not earn 80 CLPs every two years, the COCO, FAE, or Administrator may revoke or modify the warrant or certificate of appointment to decrease the dollar and/or specific type of transaction authority.  The COCO notifies the warrant or certificate of appointment holder in writing, when the revocation or modification is effective.  The notice provides enough time and sufficient instruction to ensure that no unauthorized obligations are made.

h. Appendices to this section provide samples of various CO certificates of appointment.

a. General. The COCO may delegate a limited form of procurement authority to qualified individuals who are not warranted COs.  This limited authority may be granted to individuals within or outside of the contracting office when supported by a demonstrated need.  Managers of non-contracting offices that require limited purchasing authority may request a Delegation of Procurement Authority (DPA) from the COCO.  The COCO evaluates the request and delegates authority to the individual needing the authority.  The delegation must be in writing and state specific limitations governing the limited procurement authority, such as dollar thresholds or types of procurement (i.e. supply, services, construction, etc).  Guidance in this section does not apply to the purchase card program, as it is addressed in AMS Procurement Guidance T3.2.6, Purchase Card Program.

b. Redelegation. Except for the purchase card program manager, individuals delegated limited procurement authority from the COCO cannot redelegate that authority.

c. Delegation of Procurement Authority (Not Related to the Purchase Card Program).

(1) Qualified non-1102 personnel (such as Logistic Management Specialists (LMS)) may be granted limited procurement authority to procure supplies, construction, or services using simplified purchase methods (AMS Procurement Guidance T3.2.2.5).

(2) Delegation of Procurement Authority (DPA). Limited procurement authority may be granted to non-1102s by the COCO through a written DPA (See Appendix 11 for a sample DPA).  This form of DPA authorizes the individual to legally bind the FAA, and is not related to the DPA issued through the FAA purchase card program.  This procurement authority cannot be further delegated, and personnel cannot “sign for” or over someone else holding procurement authority.

(3) Limitations. DPAs define the dollar and scope limitations of the authority granted by the COCO.  The dollar value of a transaction includes the base year and all options, as defined by "total estimated potential value" in Appendix C of AMS policy.  In addition to the dollar value, a DPA must expressly state any limitations of authority (other than limitations in applicable laws or regulations) and state the specific types of transactions the non-1102 is authorized to make.

(4) Levels of DPAs.

(a) Level I:  Persons may be granted procurement authority up to $25,000 after satisfying the experience and training requirements for Level I certification, non-1102, detailed in Appendix 10 to this section.

(b) Level II:  Persons may be granted procurement authority up to $50,000 after satisfying the experience and training requirements for Level II certification, non-1102, detailed in Appendix 10 to this section.

(5) Displaying the DPA. Personnel must prominently display DPAs to make information on the authority and any limitations readily available to the public and FAA personnel.

(6) Procedures for Obtaining a DPA. The request for a DPA is submitted on an Application for FAA Acquisition Management System Certification-DPA (see Procurement Forms) by the individual, through their immediate supervisor, to the COCO.  The nominee’s supervisor forwards the nomination package and ensures that the individual meets the training and experience requirements commensurate with the proposed delegated threshold.  The COCO reviews the request and supporting documentation for completeness, evaluates the applicant’s acquisition experience, training, and evidence of certification, and signs the request and DPA.  The DPA issued to the individual includes a DPA number, level of authority, and any other applicable restrictions, such as types of acquisitions.

(7) Skills Currency (Maintenance)/Continuous Learning. Non-1102s holding DPAs are required to earn 40 continuous learning points (CLP) of skills currency training every two years.  COCOs monitor the training of individuals to whom they delegate procurement authority for compliance with continuous learning requirements.  If the 40 CLPs are not earned every two years, the COCO, the FAE, or Administrator may choose to revoke or modify the DPA to decrease the dollar value and/or specific type of transaction authority.  The COCO notifies the non-1102, in writing, when the revocation or modification is effective.  The notice provides enough time and sufficient instructions to ensure that no unauthorized obligations are made.

d. Waivers. The procedures, forms, and approvals needed to waive experience or training requirements for non-1102 personnel are the same as those for 1102 series personnel (see AMS Procurement Guidance T3.1.4:4, Waivers to 1102 Series Education or Training Requirements and Fulfillment).

e. All training and education information relating to personnel with procurement authority (other than authority through the purchase card program) must be entered into the enterprise Learning Management System (eLMS) (https://elms.dot.gov/) and the Acquisition Career Management Information System (ACMIS) (https://admin.acmis.gov/).

a. General.

(1) Contracting Authority. Only a procurement and real property COs and other qualified individual delegated purchasing authority, acting within the scope of his or her delegated authority, may enter into contracts, leases, or other agreements and may obligate funds on behalf of the Government.

(2) Unauthorized Commitments. A contract, lease, or agreement made by an FAA employee, other than a CO and other authorized person, is not binding because the person who made the agreement lacked the authority to commit the Government.  An employee without proper authority who commits the Government is acting improperly.  The employee will be held accountable and may be disciplined in accordance with Federal Aviation Personnel Manual (FAPM) Letter 2635 and Human Resources Policy Manual (HRPM) ER-4.1, as applicable.

(3) Organizational Responsibility. FAA organizations must make every effort to prevent unauthorized commitments.  Unauthorized commitments are serious acts of misconduct.  Supervisors and managers must ensure each employee is aware of policy and procedures related to unauthorized commitments, and conduct and discipline rules for unauthorized commitments in FAPM Letter 2635 and ER-4.1.

(4) Ratification. Although the FAA's policy is to avoid unauthorized commitments, under certain approved circumstances such commitments may be ratified using the procedures in this section and converted into a legal contract.

(5) Ratifying Official. The Director of Acquisition Policy and Contracting (AJA-4) at Washington Headquarters has authority to ratify unauthorized commitments.  This authority is delegated to the Regional Administrators of each Logistics Service Center and to Center Directors for unauthorized commitments in service areas, regions, and centers.  This ratifying authority cannot be delegated below these positions.

(6) Local Implementation. All FAA organizations follow the procedures in this section.  Logistics Service Area and Center contracting offices, and other organizations, may issue their own implementing procedures if they do not contradict the procedures in this section.

b. Procedures for Ratification. When an organization discovers an unauthorized commitment has been made, the organization must take immediate action to ratify the commitment and have the cognizant procurement office covert it to a legal action.  Procedures for ratification are:

(1) The supervisor/manager, assisted by the person who committed the unauthorized act, prepares a memorandum of facts containing the following information:

(a) A detailed description of the circumstances that caused the unauthorized commitment;

(b) Reasons why normal procurement procedures were not followed;

(c) A description of the bona fide Government requirement that necessitated the commitment;

(d) A statement as to the benefit to the agency as a result of the acquisition of the unauthorized supplies or services received;

(e) The dollar value of the commitment;

(f) Rationale for the contractor selected and identification of other sources considered;

(g) The name of the individual who made the unauthorized act;

(h) A statement regarding the disciplinary action taken to preclude the situation from recurring;

(i) A specific recommendation that the transaction be approved and ratified;

(j) A determination that funds are now available and were available at the time the unauthorized commitment was made; and

(k) Any other pertinent facts including invoices, receiving reports, or other evidence concerning the transaction.

(2) Evidence of available funding should be attached to the memorandum.

(3) The memorandum of facts is signed by the employee who made the unauthorized commitment, and endorsed by the supervisor/manager.  By signing the memorandum, the employee attests that the information is accurate and complete.  If the employee has left the FAA, then the organization having access to information about the unauthorized commitment prepares the memorandum and it is signed by the former employee’s supervisor/manager.

(4) Legal review and concurrence is obtained prior to submitting the memorandum to the ratifying official.

(5) After legal concurrence, the memorandum along with the applicable procurement request (PR) is transmitted to the cognizant procurement office for ratification action.

(6) When the procurement office receives a PR and a properly documented supporting memorandum, the CO makes a written determination, as described below, and forwards the ratification action to the ratifying official.

(a) CO Determination. Prior to recommending approval of a ratification and as a part of the CO's review and determination, the CO:

(i) Determines the price to be fair and reasonable;

(ii) Recommends that payment be made;

(iii) Determines that the settlement of the unauthorized commitment would not involve a contract dispute subject to AMS Policy 3.9;

(iv) Determines that the purchase would have been authorized had the purchaser followed established procedures.

(b) If an affirmative determination can be made in all areas of subparagraph (a) above, the CO prepares a memorandum to the ratifying official containing the following information:

(i) A brief description of the unauthorized commitment;

(ii) A statement that prices are fair and reasonable;

(iii) A statement recommending approval of the unauthorized commitment; and

(iv) A copy of all supporting documentation.

(c) If the CO, after legal concurrence, is unable to make an affirmative determination in all areas of subparagraph (a) above, the memorandum to the ratifying official states the CO's reasons that an affirmative determination cannot be made, recommends that the action not be ratified, and offers an alternative solution to resolving the unauthorized commitment.

c. Notice of Infractions.

(1) An unauthorized commitment made by an individual is considered a first infraction.

(2) Upon receipt of a request for ratification from an organization, the cognizant Logistics Service Area Division manager at regions, Acquisition Division manager at the Technical Center, Program Director for Acquisition at the Aeronautical Center, or manager of headquarters Contracting Division forwards a notice of infraction to the next level manager/supervisor level above the supervisor/manager who signed the memorandum of facts.  The notice advises the second level manager/supervisor that the action violates Federal law and FAA policy and guidance; reminds him/her of the proper procurement process; offers to provide written material or mini-training sessions (when possible) to orient the organization to the procurement process; requests every effort be made to avoid future violations; and, when appropriate, requests the widest possible distribution of the notice within the organization.

d.   Disciplinary Actions for Making Unauthorized Commitments.

(1) Individuals who make unauthorized commitments, as well as their immediate supervisor are subject to possible disciplinary actions.  The recommended levels of disciplinary penalties for staff, managers, and/or supervisors, for up to three infractions, are contained FAPM Letter 2635 and ER-4.1.

(2) Any unauthorized commitment made by a non-manager/supervisor with the approval of his/her manager/supervisor is an infraction against the manager/supervisor and not the non-manager/supervisor.

(3) The period of accumulation for the above-mentioned infractions by staff, managers, and/or supervisors is 5 years.

e. Avoiding Ratification.

(1) When individuals who have not been delegated procurement authority need products or services, or when individuals with delegated procurement authority need products or services estimated to exceed their delegated authority, they must consult with the procurement office for support and guidance to avoid unauthorized commitments.

(2) An unauthorized commitment occurs when someone, other than a CO or other authorized individual, enters into an agreement on behalf of the Government but does not have authority to do so or to obligate the Government.

(3) To avoid a ratification action, an office requiring products or services must ensure that its employees are familiar with the procurement process and are aware of the consequences surrounding unauthorized commitments.

(4) Individuals who have not been delegated procurement authority and who need supplies or services must contact either the person within their organization who has delegated procurement authority or the cognizant procurement office for assistance.  The following are examples of types of procurement and areas of the procurement process that may involve individuals outside of the procurement offices, and circumstances in which procurement authority may be delegated to individuals other than a CO. (For more information about procurement methods generally used by individuals outside of the procurement office, see AMS Procurement Toolbox Guidance T3.2.2.5, Commercial and Simplified Purchase Method.)

(a) Government Purchase Card. FAA employees may be delegated authority to procure supplies and services using the Government purchase card.

(b) Blanket Purchase Agreement (BPA). A procurement vehicle, awarded by a CO, for ordering supplies or services that may authorize other specific individuals to order supplies or services from the vendor.

(c) Credit Card Check. FAA employees delegated purchase authority may use credit card checks when a vendor does not accept the Government purchase card for on-the-spot, over-the-counter purchases of supplies and services.

(5) Existing Contracts. Contracting Officer Representative (COR), Contracting Officer Technical Representative (COTR), Resident Engineers, etc., must be careful not to direct the contractor to perform any task that would result in a change to the cost, schedule, or scope of the contract, unless such action is authorized by the CO.  It is easy through conversation and during the normal daily interaction with the contractor to inadvertently direct the contractor to perform tasks that result in cost or schedule impact.  If such direction is given without the delegated authority, or the express authorization of the CO, the result is an unauthorized commitment.

(6) Contract Renewals. Contracts awarded for a base year plus options means that the Government is only committed for the first year or base period.  Each option period requires a modification to the contract prior to the beginning of the option period to authorize continued performance.  Performance following the initial contract period must not begin until the contract has been properly modified to authorize continued performance.  The program or requiring office is responsible for requesting a contract modification of options and providing the funds necessary to continue performance.  Individuals who serve as the Government’s point of contact on a contract with option provisions should be familiar with the contract terms.  Placing an order or directing tasks against an expired contract results in an unauthorized commitment.  Prior to the beginning of the option year, if a modification has not been received to extend the contract period, the CO should be contacted for guidance before placing any orders or directing any tasks for that option period.

(7) Examples. The following are examples of areas where unauthorized commitments are commonly made:

(a) Acquiring Conference Space. After the request for conference space has been coordinated through the local real property office, the requiring office may discuss the requirement with the vendor/hotel to ensure the appropriate accommodations are available.  However, the space should not be utilized until the transaction has been approved and an agreement signed by a person with the appropriate procurement authority.

(b) Training. Request for training should be submitted to the procurement office in time to enable the requirement to be processed sufficiently in advance of the beginning of the course.

(c) Professional Speakers or Arbitration Services. The requiring organization may identify the appropriate speakers or arbitrators and have discussions to ensure the Government’s needs will be met.  However, the requiring office should not enter into any oral or written agreements on behalf of the Government unless the person making the agreement has the delegated authority to do so.  If the requiring office does not have an individual with the delegated authority to enter into an agreement, the request should be submitted to the contracting office for processing.

f. Exceptions to Infractions.

(1) In cases of extreme emergencies, such as natural disaster (floods, fires, tornadoes, and hurricanes) or emergencies that may have an immediate impact on the safety of the flying public, an individual may be put in a position of having to obligate the Government’s funds in order to preserve life and property.  In these instances, if possible, the individual should contact the cognizant procurement office and request that a CO verbally authorize the contractor to proceed in accordance with the emergency procedures outlined in AMS policy 3.2.2.4.1.1.

(2) When the conditions outlined above occur, and the CO cannot be contacted to give a verbal authorization, the memorandum of fact documents the circumstances.  It includes a statement that the person who made the unauthorized commitment is exempt from the requirement for disciplinary action.

g. Waivers. The Director of Acquisition Policy and Contracting at Washington Headquarters has authority to waive the disciplinary actions when the ratifying official justifies in writing that the unauthorized act does not warrant disciplinary action.

h. Definitions.

(1) "Ratification" - an act of approving an unauthorized commitment by an official who has the authority to do so.

(2) "Unauthorized commitment" - an agreement entered into by a representative of the Government who does not have the authority to enter into agreements on behalf of the Government.

None applicable.

Effective FY08 and Beyond

*Or equivalent courses for Real Property Contracting Officers as determined by the Real Property Manager.

Effective FY07-FY08

*Or equivalent courses for Real Property Contracting Officers as determined by the Real Property Manager.

Previous or Legacy Training Courses

Course Titles:

CON 100 – Shaping Smart Business Arrangements

CON 101 – Fundamentals of Contracting

CON 104 – Fundamentals of Contract Pricing

CON 110 – Mission Support Planning

CON 111 – Mission Strategy Execution

CON 112 – Mission Performance Assessment

CON 120 – Mission Focused Contracting

CON 202 – Intermediate Contracting

CON 204 – Intermediate Contract Pricing

CON 210 – Government Contract Law

CON 214 - Business Decisions for Contracting

CON 215 – Intermediate Contracting for Mission Support

CON 216 – Legal Considerations in Contracting

CON 217 – Cost Analysis and Negotiation Techniques

CON 218 – Advanced Contracting for Mission Support

CON 301 – Executive Contracting

CON 333 – Management for Contracting Supervisors

CON 353 – Advanced Business Solutions for Mission Support

ACTION:	Request for Conditional Waiver to Training Standards for Procurement Personnel
FROM:	(Requesting Manager)
TO:	COCO

1. Request waiver of procurement personnel training or educational requirements for:

Name:

Position Title:

Series/Grade/Band:

Position Description Number:

Warrant Level:

2. Identify the specific training or educational requirements that the individual does not meet. 

3. Provide reasons as to why the requirements were not met; include a statement regarding the individual’s ability to perform successfully in the position without meeting the standards.

4. Provide a time-phased plan to meet the requirement.  Indicate the date that the individual is expected to meet the requirements.

5. Identify a point of contact.

Requesting Official (Manager/Supervisor)

Signature

Printed Name /Title/Date:_____________________________________________________

 [  ] Approved
 [  ] Disapproved

Signature:  ___________________________

Printed Name/Title/Date:_______________________________________________

ACTION:	Request for Permanent Waiver to Training Standards for Procurement Personnel
FROM:	(Requesting Manager)
TO:	COCO

1. Request waiver of procurement personnel training or educational requirements for:

Name:

Position Title:

Series/Grade/Band:

Position Description Number:

Warrant Level:

2. Identify the specific training or educational requirements that the individual does not meet. 

3. Provide reasons as to why the requirements were not met; include a statement regarding the individual’s ability to perform successfully in the position without meeting the standards.

4. Identify a point of contact.

Requesting Official (Manager/Supervisor)

Signature:  ___________________________

Printed Name /Title/Date:_____________________________________________________

 [  ] Approved
 [  ] Disapproved

Signature:  ___________________________

Printed Name/Title/Date:_______________________________________________

FAE Action

[  ] Approved
 [  ] Disapproved

Signature:  ___________________________

Printed Name/Title/Date:_______________________________________________

Continuous learning points (CLP) are awarded for successful completion of continuous learning activities. Below is guidance on how training, professional activities, and education can be used to meet the CLP requirements for refresher training. All activities must be job-related.

Training

Awareness Training. Periodically agencies conduct briefing sessions to acquaint the workforce with new or changed policy. Generally, no testing or assessment of knowledge gained is required.

Learning Modules and Training Courses. These may be formal or informal offerings from a recognized training organization, including in-house training course/ sessions, which include some form of testing/ assessment for knowledge gained.

Performing Self-Directed Study. An individual can keep current or enhance his or her capabilities through a self-directed study program agreed to by the supervisor.

Teaching. Employees are encouraged to share their knowledge and insights with others through teaching of courses or learning modules.

Mentoring. Helping others to learn and become more productive workers or managers benefits the agency and the individuals involved.

Professional Activities

Participating in Organization Management. Membership alone in a professional organization will not be considered as fulfilling continuous learning requirements, but participation in the organization leadership will. This includes holding elected/appointed positions, committee leadership roles, or running an activity for an organization that you are permitted to join under current ethics law and regulation. The employee must first ensure that participating in the management of an organization is allowed by the agency.

Attending/Speaking/Presenting at Professional Seminars/Symposia/Conferences. Employees can receive points for attending professional seminars or conferences that are job related. However, the supervisor needs to determine that the individual learned something meaningful from the experience. Because significant effort is involved in preparing and delivering presentations, credit should be given for each hour invested in the preparation and presentation.

Publishing. Writing articles related to acquisition for publication generally meets the criteria for continuous learning. Points will be awarded only in the year published. Compliance with agency publication policy is required.

Participating in Workshops. Points should be awarded for workshops with planned learning outcomes.

Education

Formal training. Continuing Education Units (CEU) as a guide for assigning points for formal training programs that award CEUs.  CEUs can be converted to points at 10 CLP points per CEU.

Formal academic programs.  For formal academic programs offered by educational institutions, each semester hour is equal to one CEU. A three-hour credit course would be worth three CEUs and 30 CLP points, assuming that it is applicable to the acquisition function.

Continuous Learning Points

The following is a summary chart of recommended continuous learning points:

SAMPLE UNLIMITED CONTRACTING OFFICER’S WARRANT EXCLUDING COOPERATIVE AGREEMENTS AND OTHER TRANSACTION

Non-1102 Certification Level	Threshold Authority	Experience	Education	Training
Level I:	Up to $25,000	At least 1 year of current purchasing or contracting experience with progressively broader work assignments. Current experience is experience gained within the last 3 years.	Formal education is not required for certification.	CON 100 CON 237 CLC 004
Level II:	Up to $50,000	At least 2 years of current purchasing or contracting experience with progressively broader work assignments. Current experience is experience gained within the last 5 years.	Formal education is not required for certification.	Level I Training CON 110 CON 111 CON 112 CON 120

Course Titles:

CLC 004 – Market Research

CON 100 – Shaping Smart Business Arrangements

CON 110 – Mission Support Planning

CON 111 – Mission Strategy Execution

CON 112 – Mission Performance Assessment

CON 120 – Mission Focused Contracting

CON 237 – Simplified Acquisition Procedures

Note: Refer to AMS Real Estate Guidance 6, Real Estate Competencies and Performance Development, for full real estate competency and training requirements.

T3.1.5 Conflict of Interest (Revision 2, January 2007) _{Revised 1/2007}    

Persons who have a real or apparent conflict of interest may be unable to render impartial, technically sound, and objective assistance, advice, or decisions. A procurement team member (program officials, contracting personnel, legal counsel, and others supporting a program), Office of Dispute Resolution for Acquisition (ODRA) member, or other Federal member who has a real or apparent conflict of interest, and who is a Federal employee, must withdraw from participation in the source selection process if law (18 U.S.C. 208) or regulation (5 CFR Part 2635) requires it. Considerations of equity and integrity of the procurement process require that non-Government members of a procurement team be held to the same standards. 

Unless a procurement team member receives prior authorization, a procurement team member who is a Government employee should not participate if the result is likely to affect the financial interests of the procurement team member's household, or the procurement team member knows a person with whom the procurement team member has a covered relationship as defined in 5 CFR 2635.502, or the procurement team member represents a party, if a reasonable person with knowledge of the relevant facts would question the procurement team member's impartiality in the matter. The law does not require non-Government procurement team members be removed when they have an apparent conflict, but the FAA's public image, workforce morale, and considerations of equity dictate that they be treated exactly as our own employees are treated. 

Each person involved in the source selection process, including the Source Selection Official (SSO), who might have access to confidential or proprietary procurement information such as procurement strategy, offerors' proposals, results of evaluations, and the final selection actions, must sign and submit a Conflict of Interest Certification to the SSO or designee prior to any participation in the source selection process. This is to ensure that no conflict of interest exists. A Conflict of Interest Certification should be completed prior to distribution of offerors' submissions for evaluation and at any time afterwards, if an individual's financial, business, or employment situation changes to create the potential for a conflict of interest. The Conflict of Interest Certification must be completed by each procurement team member for each individual procurement and retained in the pre-award file.

If the SSO or designee becomes aware of a conflict of interest, the SSO should notify the procurement legal counsel immediately. Action should be taken to remove the party from further participation in the source selection activities until the conflict of interest is reviewed and legal advice obtained. A procurement team member must be excused or removed from participation in the source selection process should a conflict of interest exist, unless a waiver is granted. All conflict of interest cases must be clearly documented. The procurement team members must update and resubmit any and all conflict of interest statements if an individual's financial, business, or employment relationship changes to the extent that a conflict of interest could exist.

None applicable.

None applicable.

The attached is a sample format for a Conflict of Interest Certification. It may be tailored to fit a specific procurement or situation. A list of offerors should be attached to the certification.

ATTACHMENT - SAMPLE CONFLICT OF INTEREST CERTIFICATION

CONFLICT OF INTEREST CERTIFICATION

SCREENING INFORMATION REQUEST:_________________________________

PROCUREMENT PROJECT:_____________________________________________

I ____________________________, am an employee of ____________________ and will be involved in Screening Information Request (SIR) activities pertaining to the subject procurement. In that capacity I will have knowledge of and access to confidential and proprietary procurement information and data concerning the selection process such as, procurement strategy, offerors’ proposals, results of evaluations, and the final selection actions.

As a member of the procurement team, I hereby agree to abide by the FAA Acquisition Management System and 5 CFR 2635, Standards of Ethical Conduct for Employees of the Executive Branch, and 18 U.S.C. 201-209,216. Further, as a participant in the procurement selection activities, I hereby certify to the following:

1. I have not been employed by any of the companies listed on the attached SIR offerors’ list. In addition, neither I, my spouse, or any of my dependent children, or other blood relatives who are residents of my household now own any bonds, stocks, or stock options, or have any other financial interest, including but not limited to employment or contract rights, in or with respect to any of the companies listed on the attached SIR offerors’ list, nor do I, or any of the aforementioned relatives have any financial commitments to any of the companies listed on the attached SIR offerors’ list.

2. In the event that any company, not listed on the attached SIR offerors’ list, submits a proposal, or any company is identified as a subcontractor to a company submitting a proposal, that I or any relatives specified in paragraph 1 above, have any of the financial interests specified above or previous employment on my part, I will immediately notify the Source Selection Official (SSO) or designee. Pending a decision on my involvement, I shall refrain from any further participation in the source selection process for this procurement.

3. Neither I, nor to the best of my knowledge and belief, my spouse or any of my minor children have any intention or expectation of obtaining employment with, contracting with, or acquiring stocks, stock options, or bonds in or with respect to any of the companies listed on the attached SIR offerors’ list.

I understand that failure to comply with the above will result in termination of my participation in the source selection activities for this procurement and may result in disciplinary action and/or referral for civil or criminal action.

_______________________________________                  _____________________

Signature                                                                                   Date

T3.1.6 Non-Disclosure of Information (Revision 1, January 2007) _{Revised 1/2007}    

The Source Selection Official (SSO), each procurement team member (program officials, contracting personnel, legal counsel, and other support staff), including advisors, and any other individuals exposed to commercially sensitive and source selection sensitive information must maintain confidentiality of that information.

Maintaining the security of sensitive procurement information and source selection proceedings is of paramount importance to the integrity of the evaluation process. To assure that sensitive data acquired in the course of the procurement are handled properly, the individuals involved in these proceedings are required to sign a Non-Disclosure Agreement before the Screening Information Request (SIR) is issued. This agreement provides notice of the type of information that requires protection and the penalties for improperly disclosing such information.

Any suspected or actual improper disclosure of procurement sensitive information must be reported to the Contracting Officer. The Contracting Officer will consult with the Procurement Legal Division for guidance in this matter. The suspected violator should not be permitted to continue in the procurement process until the suspected violation has been reviewed and legal advice obtained.

None applicable.

None applicable.

The attached is a sample Non-Disclosure of Information Agreement. It may be tailored to fit a specific situation as long as the prohibition on disclosing source selection information and the language from 18 U.S.C. 1905 is included.

ATTACHMENT - SAMPLE NON-DISCLOSURE OF INFORMATION AGREEMENT

NON-DISCLOSURE OF INFORMATION AGREEMENT

SCREENING INFORMATION REQUEST: _________________________________

PROCUREMENT PROJECT: _____________________________________________

The purpose of this Non-Disclosure Agreement is to ensure that no information of a commercially sensitive or source selection sensitive nature, which is obtained by virtue of participation on the procurement team, is disclosed by members of the team to other persons, companies or organizations; and that such information is not used by other persons, companies or organizations to obtain an unfair advantage.

AGREEMENT

As a member of the procurement team for the subject procurement, I, the undersigned agree that I will not disclose to any person, company or organization not participating on the procurement team any information learned by me as a result of my participation on that procurement team, the disclosure of which might, directly or indirectly, afford some person, company or organization an unfair competitive advantage. Such information shall include, but not be limited to, information regarding discussions, and plans or decisions by procurement team members relating to the acquisition. In addition, I will not disclose any information that pertains to internal agency communications regarding the acquisition, such as, but not limited to, acquisition plans, budgeting information, source selection plans, source selection evaluation memoranda or reports, technical analyses and recommendations, unless such release of information is authorized by appropriate agency officials.

I am aware of and will abide by the requirements of 18 U.S.C. 1905, which states: "Whoever, being an officer or employee of the United States or of any department or agency thereof, any person acting on behalf of the Office of Federal Housing Enterprise Oversight, or agent of the Department of Justice as defined in the Antitrust Civil Process Act (15 U.S.C. 1311–1314), or being an employee of a private sector organization who is or was assigned to an agency under chapter 37 of title 5, publishes, divulges, discloses, or makes known in any manner or to any extent not authorized by law any information coming to him in the course of his employment or official duties or by reason of any examination or investigation made by, or return, report or record made to or filed with, such department or agency or officer or employee thereof, which information concerns or relates to the trade secrets, processes, operations, style of work, or apparatus, or to the identity, confidential statistical data, amount or source of any income, profits, losses, or expenditures of any person, firm, partnership, corporation, or association; or permits any income return or copy thereof or any book containing any abstract or particulars thereof to be seen or examined by any person except as provided by law; shall be fined under this title, or imprisoned not more than one year, or both; and shall be removed from office or employment."

All procurement team members agree to immediately report to the Contracting Officer any potential or possible violation of this Non-Disclosure Agreement.

NAME/ROUTING SYMBOL:__________________________________________

(printed or typed)

SIGNATURE:_______________________________ DATE: ________________

COMPANY OR AGENCY NAME________________________________________

ADDRESS:___________________________________________________________

___________________________________________________________

TELEPHONE:________________________

T3.1.7 Organizational Conflict of Interest (Revision 4, April 2006) _{Revised 4/2006}    

a. The policy of the FAA is to avoid contracting with contractors who have unacceptable organizational conflicts of interest. An organizational conflict of interest means that because of existing or planned activities, an offeror or contractor is unable or potentially unable to render impartial assistance to the agency, or has an unfair competitive advantage, or the offeror or contractor's objectivity is or might be impaired. It is not the intention of the FAA to foreclose a vendor from a competitive acquisition due to a perceived OCI. FAA Contracting Officers are fully empowered to evaluate each potential OCI scenario based upon the applicable facts and circumstances. The final determination of such action may be negotiated between the impaired vendor and the Contracting Officer. The Contracting Officer's business judgment and sound discretion in identifying, negotiating, and eliminating OCI scenarios should not adversely affect the FAA' s policy for competition. The FAA is committed to working with potential vendors to eliminate or mitigate actual and perceived OCI situations, without detriment to the integrity of the competitive process, the mission of the FAA, or the legitimate business interests of the vendor community. Contractors should be instructed to contact the FAA at the earliest possible time after an investment decision has been made for a particular acquisition to evaluate whether any identified actual or potential conflicts of interest may be avoided or mitigated. As used herein, the term "person" includes any legal entity including a partnership, corporation, or association.

b. Mitigation Plans. The FAA reserves the right to audit any or all proposed mitigation plans, and to reject a plan, if in the opinion of the Contracting Officer such a plan is not in the best interests of the FAA.

a. Contracting Officers should analyze planned acquisitions to:

(1) Identify and evaluate potential OCI's early in the acquisition process (prior to issuance of an initial screening information request (SIR), if possible); and

(2) Avoid, neutralize, or mitigate potential conflicts before contract award.

b. Examples of Conflict Situations. The following examples illustrate situations in which questions concerning organizational conflicts of interest may arise. They are not all inclusive, but are intended to help the Contracting Officer apply general guidance to individual contract situations:

(1) Unequal Access to Information. Access to "nonpublic information" as part of the performance of an FAA contract could provide the contractor a competitive advantage in a later competition for another FAA contract. Such an advantage could easily be perceived as unfair by a competing vendor who is not given similar access to the relevant information. If the requirements of the FAA procurement anticipate the successful vendor may have access to nonpublic information, all vendors should be required to submit and negotiate an acceptable mitigation plan.

(2) Biased Ground Rules. A contractor in the course of performance of an FAA contract, has in some fashion established important "ground rules" for another FAA contract, where the same contractor may be a competitor. For example, a contractor may have drafted the statement of work, specifications, or evaluation criteria of a future FAA procurement. The primary concern of the FAA in this case is that a contractor so situated could slant key aspects of a procurement in its own favor, to the unfair disadvantage of competing vendors. If the requirements of the FAA procurement anticipate that a contractor may have been in a position to establish important ground rules, including but not limited to those described herein, the contractor should be required to submit and negotiate an acceptable mitigation plan.

(3) Impaired Objectivity. A contractor in the course of performance of an FAA contract, is placed in a situation of providing assessment and evaluation findings over itself, or another business division or a subsidiary of the same corporation, or another entity with which it has a significant financial relationship. The concern in this case is that the contractor's ability to render impartial advice to the FAA could appear to be undermined by the contractor's financial or other business relationship to the entity whose work product is being assessed or evaluated. In these situations, where a "walling off" of lines of communication may well be insufficient to remove the perception that the objectivity of the contractor has been tainted. If the requirements of the FAA procurement indicate that the successful vendor may be in a position to provide evaluations and assessments of itself or corporate siblings, or other entity with which it has a significant financial relationship, the affected contractor should provide a mitigation plan that includes recusal by the vendor from the affected contract work. Such recusal might include divestiture of the work to a third party vendor.

c. Contracting Officers should obtain the advice of legal counsel and appropriate technical specialists in evaluating potential conflicts and in developing any necessary SIR provisions and contract clauses. Before issuing a SIR for a contract that may involve a potential conflict, the Contracting Officer should formulate, in conjunction with legal counsel and team members, a course of action for resolving the conflict. The rational basis supporting the Contracting Officer's decision on an OCI issue should be documented in the contract file.

a. Offerors or contractors should provide information which concisely describes all relevant facts concerning any past, present or currently planned interest, (financial, contractual, organizational, or otherwise) relating to the work to be performed and bearing on whether the offeror or contractor has a possible OCI.

b. If the offeror or contractor does not disclose any relevant facts concerning an OCI, the offeror or contractor, by submitting an offer or signing the contract, warrants that to its best knowledge and belief no such facts exist relevant to a possible OCI.

The following are possible remedies should an offeror or contractor refuse to disclose, or misrepresent, any information regarding a potential OCI:

a. Refusal to provide adequate information may result in disqualification for award.

b. Nondisclosure or misrepresentation of any relevant interest may also result in the disqualification of the offeror for award.

c. Termination of the contract, if the nondisclosure or misrepresentation is discovered after award.

d. Disqualification from subsequent FAA contracts.

e. Other remedial action as may be permitted or provided by law or in the resulting contract.

The Contracting Officer should consider the following when contractor support is used to prepare specifications or statements of work:

a. If a contractor prepares and furnishes complete specifications covering nondevelopmental items, to be used in a competitive acquisition, that contractor may have a conflict in furnishing these items, either as a prime contractor or as a subcontractor, for a reasonable period of time including, at least, the duration of the initial production contract. Therefore, a contractor who has prepared and furnished completed specifications for such items should be excluded from competition for that acquisition. However, an OCI may not exist in the following circumstances:

(1) Contractors furnish, at Government request, specifications or data regarding a product they provide, even though the specifications or data may have been paid for separately or in the price of the product; or

(2) Situations in which contractors, acting as industry representatives, help Government agencies prepare, refine, or coordinate specifications, regardless of source, provided this assistance is supervised and controlled by Government representatives.

b. If a single contractor drafts complete specifications for nondevelopmental equipment, it should be eliminated for a reasonable time from competition for production based on the specifications. This should be done in order to avoid a situation in which the contractor could draft specifications favoring its own products or capabilities. In this way the FAA may be assured of getting unbiased advice as to the content of the specifications and may avoid allegations of favoritism in the award of production contracts.

c. There may be instances when contractor assistance is necessary in preparing statements of work. When contractor support is used, the contractor might be in a position to favor its own products or capabilities. If a contractor prepares, or assists in preparing, a statement of work to be used in competitively acquiring a system or services, or provides material leading directly and without delay to such a statement of work, that contractor may not supply the system, major components of the system, or the services unless:

(1) It is the single source; or

(2) It has participated in the development and design work; or

(3) More than one contractor has been involved in preparing the work statement.

d. In development work, it is normal to select firms that have done the most advanced work in the field. These firms can be expected to design and develop around their own prior knowledge. Development contractors can frequently start production earlier and more knowledgeably than firms that did not participate in the development, and this can affect the time and quality of production, both of which are important to the Government. In many instances the Government may have financed the development. Thus, while the development contractor has a competitive advantage, it is an unavoidable one that is not considered unfair, therefore no OCI mitigation would be necessary.

a. The Contracting Officer should award the contract to the apparent successful offeror unless a conflict of interest is determined to exist which cannot be neutralized, avoided, or mitigated. Before determining to withhold award based on conflict of interest considerations, the Contracting Officer should notify the contractor, provide the applicable reasons, and allow the contractor a reasonable opportunity to respond. If after consultation with legal counsel and team members, the Contracting Officer determines that it is in the best interest of the FAA to award the contract notwithstanding a conflict of interest, the Contracting Officer should document that determination.

b. When investigating a suspected OCI concerning a prospective contractor (in instances when a contractor has not independently submitted any information), the Contracting Officers should first seek the information from within the Government or from other readily available sources. Government sources include the files and the knowledge of personnel within the contracting office, other contracting offices, the cognizant contract administration and audit activities and offices concerned with contract financing. Non-Government sources include publications and commercial services, such as credit rating services, trade and financial journals, and business directories and registers.

c. If the Contracting Officer decides that a particular acquisition involves a potential OCI, the Contracting Officer should, before issuing the SIR:

(1) Prepare a written analysis, including a recommended course of action for avoiding, neutralizing, or mitigating the conflict; and

(2) If appropriate, a draft SIR provision and/or contract clause.

d. The Contracting Officer should also consider additional information provided by prospective contractors in response to the SIR or during negotiations and attempt to avoid, neutralize, or mitigate the OCI before contract award.

e. The Contracting Officer should retain all organizational conflict of interest information in the contract file.

f. If, during the effective period of any restriction, a contracting office transfers acquisition responsibility for the item or system involved, it shall notify the successor contracting office of the restriction, and send a copy of the contract under which the restriction was imposed.

The following should be considered in developing SIRs where potential conflicts of interest may be evident. As a general rule, potential organizational conflicts of interest may be resolved by imposing some restraint, appropriate to the nature of the conflict, upon the contractor's eligibility for future contracts or subcontracts. Therefore, affected SIRs should contain a provision that:

a. Invites offerors' attention to this concern;

b. States the name of the potential conflict as seen by the Contracting Officer;

c. States the nature of the proposed restraint upon future contractor activities; and

d. Depending on the nature of the acquisition, states whether or not the terms of any proposed clause and the application of this information to the contract are subject to negotiation.

See the FAST Procurement Toolbox for applicable clauses

None applicable.

T.3.1.8 Procurement Integrity Act (Revision 2, July 2006) _{Revised 7/2006}    

The Procurement Integrity Act became Federal law effective October 1, 1999, and prohibits disclosing certain procurement information.

Under AMS, FAA-specific definitions are to be substituted for Procurement Integrity Act subsection (f), "Definitions", and (g), "Limitation on Protests".  See FAA-specific definitions for subsection (f) below.The following Apendix  includes the full text of the Procurement Integrity Act (excluding subsections (f) and (g)). You may select this link to review the FAA Administrator's July 14, 2000 letter of approval of the PIA definitions.

(1) The term "contractor bid or proposal information" means any of the following information submitted to FAA as part of or in connection with a Screening Information Request (SIR) or an unsolicited proposal, to enter into an FAA procurement contract, if that information has not been previously made available to the public or disclosed publicly:

(2) The term "source selection information" means any of the following information prepared for use by the FAA for the purpose of evaluating documentation, information, presentations, proposals, or binding offers which an offeror submits in response to a Screening Information Request (SIR), or in an unsolicited proposal, to enter into an FAA procurement contract, if that information has not been previously made available to the public or disclosed publicly:

(3) The term "Federal agency" means the FAA.

(4) The term "Federal agency procurement" means the acquisition (by using competitive or non-competitive procedures and awarding a contract) of goods or services (including construction) from non-Federal sources by the FAA using appropriated funds.

(5) The term "contracting officer" means a person who, by appointment in accordance with FAA policy, has the authority to enter into a FAA contract on behalf of the Government and to make determinations and findings with respect to such contract.

(6) The term "protest" means a written objection by an interested party to the award or proposed award of a FAA procurement contract.

(7) The term "official" means the following:

(A) An employee of the FAA, as defined in the FAA’s Personnel Management System.

(B) An officer (as defined in 5 U.S.C. Section 2104) of any non-FAA federal agency (as federal agency is defined in 40 U.S.C. Section 472).

(C) An employee (as defined in 5 U.S.C. Section 2105) of any non-FAA federal agency (as federal agency is defined in 40 U.S.C. Section 472).

(D) A member of the uniformed services, as defined in 5 U.S.C. Section 2101(3).

(8) The term "other applicable law or regulation" as used at 41 U.S.C. Section 423(e)(3)(A)(iv), includes the FAA Personnel Management System.

(9) The term "Comptroller General of the United States", as used at 41 U.S.C. Section 423(h)(6), means the FAA Office of Dispute Resolution for Acquisition.

(10) The term "program manager" as used at 41 U.S.C. Section 423(d)(1)(B), includes a FAA Integrated Product Team (IPT) Lead or Acting Lead, or a Product Team (PT) Lead or Acting Lead.

(11) The term "deputy program manager" as used at 41 U.S.C. Section 423(d)(1)(B), includes a Deputy or Acting Deputy to an FAA IPT Lead, or a Deputy or Acting Deputy to a PT Lead.

(12) The term "Federal Acquisition Regulation" as used at 41 U.S.C. Section 423(e)(3)(A)(iii), means the FAA AMS.

See the FAST Procurement Toolbox for applicable clauses

1. Definitions.

2. Text of the Procurement Integrity Act.

3. Memorandum, subject: "ACTION: Procurement Integrity Act Definitions", dated July 12, 2000, showing the Administrator’s approval.

Appendix 1 to T3.1.8 - Procurement Integrity Act _{(Revised 07/2003)}

Procurement Integrity Act, FAA Definitions

1. Background:

As provided by 49 United States Code (U.S.C.) Section 40122(g)(3), effective October 1, 1999, the Federal Aviation Administration (FAA) is subject to the Procurement Integrity Act (the Act) (41 U.S.C. Section 423). However, Subsections (f), Definitions, and (g), Limitations on Protests, both in Section 423, do not apply to the FAA. In lieu of the definitions contained in the Subsection (f) of the Act, the FAA Administrator was directed by Congress to adopt its own definitions, consistent with the intent of the FAA’s Acquisition Management System (AMS) and the Act. These definitions are provided below. (The full text of the Procurement Integrity Act is shown in the following pages.)

2. Definitions: As used in 41 U.S.C. Section 423:

(1) The term "contractor bid or proposal information" means any of the following information submitted to FAA as part of or in connection with a Screening Information Request (SIR) or an unsolicited proposal, to enter into an FAA procurement contract, if that information has not been previously made available to the public or disclosed publicly:

(2) The term "source selection information" means any of the following information prepared for use by the FAA for the purpose of evaluating documentation, information, presentations, proposals, or binding offers which an offeror submits in response to a Screening Information Request (SIR), or in an unsolicited proposal, to enter into an FAA procurement contract, if that information has not been previously made available to the public or disclosed publicly:

(J) Other information based on a case- by-case determination made by the FAA Associate Administrator for Research and Acquisition, his or her designee, or the Integrated Product Team, that its disclosure would jeopardize the integrity or successful completion of the FAA procurement to which the information relates. _{(Revised 07/2003)}

In addition, all source selection information should be clearly marked as such on the cover and throughout each individual document. _{(Added 07/2003)}

(3) The term "Federal agency" means the FAA.

(4) The term "Federal agency procurement" means the acquisition (by using competitive or non-competitive procedures and awarding a contract) of goods or services (including construction) from non-Federal sources by the FAA using appropriated funds.

(5) The term "contracting officer" means a person who, by appointment in accordance with FAA policy, has the authority to enter into a FAA contract on behalf of the Government and to make determinations and findings with respect to such contract.

(6) The term "protest" means a written objection by an interested party to the award or proposed award of a FAA procurement contract.

(7) The term "official" means the following:

(A) An employee of the FAA, as defined in the FAA’s Personnel Management System.

(B) An officer (as defined in 5 U.S.C. Section 2104) of any non-FAA federal agency (as federal agency is defined in 40 U.S.C. Section 472).

(C) An employee (as defined in 5 U.S.C. Section 2105) of any non-FAA federal agency (as federal agency is defined in 40 U.S.C. Section 472).

(D) A member of the uniformed services, as defined in 5 U.S.C. Section 2101(3).

(8) The term "other applicable law or regulation" as used at 41 U.S.C. Section 423(e)(3)(A)(iv), includes the FAA Personnel Management System.

(9) The term "Comptroller General of the United States", as used at 41 U.S.C. Section 423(h)(6), means the FAA Office of Dispute Resolution for Acquisition.

(10) The term "program manager" as used at 41 U.S.C. Section 423(d)(1)(B), includes a FAA Integrated Product Team (IPT) Lead or Acting Lead, or a Product Team (PT) Lead or Acting Lead.

(11) The term "deputy program manager" as used at 41 U.S.C. Section 423(d)(1)(B), includes a Deputy or Acting Deputy to an FAA IPT Lead, or a Deputy or Acting Deputy to a PT Lead.

(12) The term "Federal Acquisition Regulation" as used at 41 U.S.C. Section 423(e)(3)(A)(iii), means the FAA AMS.

Appendix 2 to T3.1.8 - Procurement Integrity Act

Text of the Procurement Integrity Act 49 U.S.C. Section 423

Below is the text of the Procurement Integrity Act, 49 U.S.C. Section 423 (omitting only its Subsections (f) and (g), which are not applicable to FAA). This Act, as it applies to the FAA, is to be read in conjunction with the FAA Procurement Integrity Act definitions (which are also shown in this Toolbox Appendix). Please take special notice of 49 U.S.C. Section 423(h) below, which contains "Savings provisions", or situations where the Procurement Integrity Act does not apply.

§ 423. Restrictions on disclosing and obtaining contractor bid or proposal information or source selection information

(a) Prohibition on disclosing procurement information.

(1) A person described in paragraph (2) shall not, other than as provided by law, knowingly disclose contractor bid or proposal information or source selection information before the award of a Federal agency procurement contract to which the information relates.

(2) Paragraph (1) applies to any person who -

(A) is a present or former official of the United States, or a person who is acting or has acted for or on behalf of , or who is advising or has advised the United States with respect to, a Federal agency procurement; and

(B) by virtue of that office, employment, or relationship has or had access to contractor bid or proposal information or source selection information.

(b) Prohibition on obtaining procurement information. A person shall not, other than as provided by law, knowingly obtain contractor bid or proposal information or source selection information before the award of a Federal agency procurement contract to which the information relates.

(c) Actions required of procurement officers when contacted by offerors regarding non-Federal employment.

(1) If an agency official who is participating personally and substantially in a Federal agency in a Federal agency procurement for a contract in excess of the simplified acquisition threshold contracts or is contacted by a person who is a bidder or offeror in that Federal agency procurement regarding possible non-Federal employment for that official, the official shall - 

(A) promptly report the contract in writing to the official’s supervisor and to the designated agency ethics official (or designee) of the agency in which the official is employee; and

(B)  (i)  reject the possibility of non-Federal employment; or

       (ii) disqualify himself or herself from further personal and substantial participation in that Federal agency procurement until such time as the agency has authorized the official to resume participation in such procurement, in accordance with the requirements of section 208 of title 18, United States Code, and applicable agency regulations on the grounds that --

(I) the person is no longer a bidder or offeror in that Federal agency procurement; or

(II) all discussions with the bidder or offeror regarding possible non-Federal employment have terminated without an agreement or arrangement for employment.

(2) Each report required by this subsection shall be retained by the agency for not less that two years following the submission of the report. All such §reports shall be made available to the public upon request, except that any part of a report that is exempt from the disclosure requirements of section 552 of title 5, United States Code, under subsection (b)(1) of such section may be withheld from disclosure to the public.

(3) An official who knowingly fails to comply with the requirements of this subsection shall be subject to the penalties and administrative actions set forth in subsection (e).

(4) A bidder or offeror who engages in employment discussions with an official who is subject to the restrictions of this subsection, knowing that the official has not complied with subparagraph (A) or (B) of paragraph (1), shall be subject to the penalties and administrative actions set forth in subsection (e).

d) Prohibition on former official’s acceptance of compensation from contractor.

(1) A former official of a Federal agency may not accept compensation from a contractor as an employee, officer, director, or consultant of the contractor within a period of one year after such former official—

(A) served, at the time of selection of the contractor or the award of a contract to that contractor, as the procuring contracting officer, the source selection authority, a member of the source selection evaluation board, or the chief of a financial or technical evaluation team in a procurement in which that contractor was selected for award of a contract in excess of $10,000,000;

(B) served as the program manager, deputy program manager, or administrative contracting officer for a contract in excess of $10,000,000 awarded to that contractor; or

(C) personally made for the Federal agency—

(i) a decision to award a contract, subcontract, modification of a contract or subcontract, or a task order or delivery order in excess of $10,000,000 to that contractor;

(ii) a decision to establish overhead or other rates applicable to a contract or contracts for that contractor that are valued in excess of $10,000,000;

(iii) a decision to approve issuance of a contract payment or payments in excess of $10,000,000 to that contractor; or

(iv) a decision to pay or settle a claim in excess of $10,000,000 with that contractor.

(2) Nothing in paragraph (1) may be construed to prohibit a former official of a Federal agency from accepting compensation from any division or affiliate of a contractor that does not produce the same or similar products or services as the entity of the contractor that is responsible for the contract referred to in subparagraph (A), (B), or (C) of such paragraph.

(3) A former official who knowingly accepts compensation in violation of this subsection shall be subject to penalties and administrative actions as set forth in subsection (e).

(4) A contractor who provides compensation to a former official knowing that such compensation is accepted by the former official in violation of this subsection shall be subject to penalties and administrative actions as set forth in subsection (e).

(5) Regulations implementing this subsection shall include procedures for an official or former official of a Federal agency to request advice from the appropriate designated agency ethics official regarding whether the official or former official is or would be precluded by this subsection from accepting compensation from a particular contractor.

(e) Penalties and administrative actions.

(1) Criminal penalties. Whoever engages in conduct constituting a violation of subsection (a) or (b) for the purpose of either—

(A) exchanging the information covered by such subsection for anything of value, or

(B) obtaining or giving anyone a competitive advantage in the award of a Federal agency procurement contract, shall be imprisoned for not more than 5 years or fined as provided under title 18, United States Code, or both.

(2) Civil penalties. The Attorney General may bring a civil action in an appropriate United States district court against any person who engages in conduct constituting a violation of subsection (a), (b), (c), or (d). Upon proof of such conduct by a preponderance of the evidence, the person is subject to a civil penalty of not more that $50,000 for each violation plus twice the amount of compensation which the individual received or offered for the prohibited conduct. An organization that engages in such conduct is subject to a civil penalty of not more that $500,000 for each violation plus twice the amount of compensation which the organization received or offered for the prohibited conduct.

(3) Administrative actions.

(A) If a Federal agency receives information that a contractor or a person has engaged in conduct constituting a violation of subsection (a), (b), (c), or (d), the Federal agency shall consider taking one or more of the following actions, as appropriate:

(i) Cancellation of the Federal agency procurement, if a contract has not yet been awarded.

(ii) Rescission of a contract with respect to which - 

(I) the contractor or someone acting for the contractor has been convicted for an offense punishable under paragraph (1), or

(II) the head of the agency that awarded the contract has determined, based upon a preponderance of the evidence, that the contractor or someone acting for the contractor has engaged in conduct constituting such an offense.

(iii) Initiation of suspension or debarment proceedings for the protection of the Government in accordance with procedures in the Federal Acquisition Regulation.

(iv) Initiation of adverse personnel action, pursuant to the procedures in chapter 75 of title 5, United States Code [5 USCS §§ 7501 et seq.], or other applicable law or regulation.

(B) If a Federal agency rescinds a contract pursuant to subparagraph (A) (ii), the United States is entitled to recover, in addition to any penalty prescribed by law, the amount expended under the contract.

(C) For purposes of any suspension or debarment proceedings initiated pursuant to subparagraph (A) (iii), engaging in conduct constituting an offense under subsection (a), (b), (c), or (d) affects the present responsibility of a Government contractor or subcontractor.

(h) Savings provisions. This section does not - 

(1) restrict the disclosure of information to, or its receipt by, any person or class of persons authorized, in accordance with applicable agency regulations or procedures, to receive that information;

(2) restrict a contractor from disclosing its own bid or proposal information or the recipient from receiving that information;

(3) restrict the disclosure or receipt of information relating to a Federal agency procurement after it has been canceled by the Federal agency before contract award unless the Federal agency plans to resume the procurement;

(4) prohibit individual meetings between a Federal agency official and an offeror or potential offeror for, or a recipient of, a contract or subcontract under a Federal agency procurement, provided that unauthorized disclosure or receipt of contractor bid or proposal information or source selection information does not occur;

(5) authorize the withholding of information from, nor restrict its receipt by, Congress, a committee or subcommittee of Congress, the Comptroller General, a Federal agency, or an inspector general of a Federal agency;

(6) authorize the withholding of information from, nor restrict its receipt by, the Comptroller General of the United States in the course of a protest against the award or proposed award of a Federal agency procurement contract; or

(7) limit the applicability of any requirements, sanctions, contract; or penalties, and remedies established under any other law or regulation.

Procurement Integrity Act, FAA Definitions

1. Background:

As provided by 49 United States Code (U.S.C.) Section 40122(g)(3), effective October 1, 1999, the Federal Aviation Administration (FAA) is subject to the Procurement Integrity Act (the Act) (41 U.S.C. Section 423). However, Subsections (f), Definitions, and (g), Limitations on Protests, both in Section 423, do not apply to the FAA. In lieu of the definitions contained in the Subsection (f) of the Act, the FAA Administrator was directed by Congress to adopt its own definitions, consistent with the intent of the FAA’s Acquisition Management System (AMS) and the Act. These definitions are provided below. (The full text of the Procurement Integrity Act is shown in the following pages.)

Appendix 2 to T3.1.8 - Procurement Integrity Act

Text of the Procurement Integrity Act 49 U.S.C. Section 423

Below is the text of the Procurement Integrity Act, 49 U.S.C. Section 423 (omitting only its Subsections (f) and (g), which are not applicable to FAA). This Act, as it applies to the FAA, is to be read in conjunction with the FAA Procurement Integrity Act definitions (which are also shown in this Toolbox Appendix). Please take special notice of 49 U.S.C. Section 423(h) below, which contains "Savings provisions", or situations where the Procurement Integrity Act does not apply.

§ 423. Restrictions on disclosing and obtaining contractor bid or proposal information or source selection information

(a) Prohibition on disclosing procurement information.

(1) A person described in paragraph (2) shall not, other than as provided by law, knowingly disclose contractor bid or proposal information or source selection information before the award of a Federal agency procurement contract to which the information relates.

(2) Paragraph (1) applies to any person who -

(A) is a present or former official of the United States, or a person who is acting or has acted for or on behalf of , or who is advising or has advised the United States with respect to, a Federal agency procurement; and

(B) by virtue of that office, employment, or relationship has or had access to contractor bid or proposal information or source selection information.

(b) Prohibition on obtaining procurement information. A person shall not, other than as provided by law, knowingly obtain contractor bid or proposal information or source selection information before the award of a Federal agency procurement contract to which the information relates.

(c) Actions required of procurement officers when contacted by offerors regarding non-Federal employment.

(1) If an agency official who is participating personally and substantially in a Federal agency in a Federal agency procurement for a contract in excess of the simplified acquisition threshold contracts or is contacted by a person who is a bidder or offeror in that Federal agency procurement regarding possible non-Federal employment for that official, the official shall - 

(A) promptly report the contract in writing to the official’s supervisor and to the designated agency ethics official (or designee) of the agency in which the official is employee; and

(B)  (i)  reject the possibility of non-Federal employment; or

       (ii) disqualify himself or herself from further personal and substantial participation in that Federal agency procurement until such time as the agency has authorized the official to resume participation in such procurement, in accordance with the requirements of section 208 of title 18, United States Code, and applicable agency regulations on the grounds that --

(I) the person is no longer a bidder or offeror in that Federal agency procurement; or

(II) all discussions with the bidder or offeror regarding possible non-Federal employment have terminated without an agreement or arrangement for employment.

(2) Each report required by this subsection shall be retained by the agency for not less that two years following the submission of the report. All such §reports shall be made available to the public upon request, except that any part of a report that is exempt from the disclosure requirements of section 552 of title 5, United States Code, under subsection (b)(1) of such section may be withheld from disclosure to the public.

(3) An official who knowingly fails to comply with the requirements of this subsection shall be subject to the penalties and administrative actions set forth in subsection (e).

(4) A bidder or offeror who engages in employment discussions with an official who is subject to the restrictions of this subsection, knowing that the official has not complied with subparagraph (A) or (B) of paragraph (1), shall be subject to the penalties and administrative actions set forth in subsection (e).

d) Prohibition on former official’s acceptance of compensation from contractor.

(1) A former official of a Federal agency may not accept compensation from a contractor as an employee, officer, director, or consultant of the contractor within a period of one year after such former official—

(A) served, at the time of selection of the contractor or the award of a contract to that contractor, as the procuring contracting officer, the source selection authority, a member of the source selection evaluation board, or the chief of a financial or technical evaluation team in a procurement in which that contractor was selected for award of a contract in excess of $10,000,000;

(B) served as the program manager, deputy program manager, or administrative contracting officer for a contract in excess of $10,000,000 awarded to that contractor; or

(C) personally made for the Federal agency—

(i) a decision to award a contract, subcontract, modification of a contract or subcontract, or a task order or delivery order in excess of $10,000,000 to that contractor;

(ii) a decision to establish overhead or other rates applicable to a contract or contracts for that contractor that are valued in excess of $10,000,000;

(iii) a decision to approve issuance of a contract payment or payments in excess of $10,000,000 to that contractor; or

(iv) a decision to pay or settle a claim in excess of $10,000,000 with that contractor.

(2) Nothing in paragraph (1) may be construed to prohibit a former official of a Federal agency from accepting compensation from any division or affiliate of a contractor that does not produce the same or similar products or services as the entity of the contractor that is responsible for the contract referred to in subparagraph (A), (B), or (C) of such paragraph.

(3) A former official who knowingly accepts compensation in violation of this subsection shall be subject to penalties and administrative actions as set forth in subsection (e).

(4) A contractor who provides compensation to a former official knowing that such compensation is accepted by the former official in violation of this subsection shall be subject to penalties and administrative actions as set forth in subsection (e).

(5) Regulations implementing this subsection shall include procedures for an official or former official of a Federal agency to request advice from the appropriate designated agency ethics official regarding whether the official or former official is or would be precluded by this subsection from accepting compensation from a particular contractor.

(e) Penalties and administrative actions.

(1) Criminal penalties. Whoever engages in conduct constituting a violation of subsection (a) or (b) for the purpose of either—

(A) exchanging the information covered by such subsection for anything of value, or

(B) obtaining or giving anyone a competitive advantage in the award of a Federal agency procurement contract, shall be imprisoned for not more than 5 years or fined as provided under title 18, United States Code, or both.

(2) Civil penalties. The Attorney General may bring a civil action in an appropriate United States district court against any person who engages in conduct constituting a violation of subsection (a), (b), (c), or (d). Upon proof of such conduct by a preponderance of the evidence, the person is subject to a civil penalty of not more that $50,000 for each violation plus twice the amount of compensation which the individual received or offered for the prohibited conduct. An organization that engages in such conduct is subject to a civil penalty of not more that $500,000 for each violation plus twice the amount of compensation which the organization received or offered for the prohibited conduct.

(3) Administrative actions.

(A) If a Federal agency receives information that a contractor or a person has engaged in conduct constituting a violation of subsection (a), (b), (c), or (d), the Federal agency shall consider taking one or more of the following actions, as appropriate:

(i) Cancellation of the Federal agency procurement, if a contract has not yet been awarded.

(ii) Rescission of a contract with respect to which - 

(I) the contractor or someone acting for the contractor has been convicted for an offense punishable under paragraph (1), or

(II) the head of the agency that awarded the contract has determined, based upon a preponderance of the evidence, that the contractor or someone acting for the contractor has engaged in conduct constituting such an offense.

(iii) Initiation of suspension or debarment proceedings for the protection of the Government in accordance with procedures in the Federal Acquisition Regulation.

(iv) Initiation of adverse personnel action, pursuant to the procedures in chapter 75 of title 5, United States Code [5 USCS §§ 7501 et seq.], or other applicable law or regulation.

(B) If a Federal agency rescinds a contract pursuant to subparagraph (A) (ii), the United States is entitled to recover, in addition to any penalty prescribed by law, the amount expended under the contract.

(C) For purposes of any suspension or debarment proceedings initiated pursuant to subparagraph (A) (iii), engaging in conduct constituting an offense under subsection (a), (b), (c), or (d) affects the present responsibility of a Government contractor or subcontractor.

(h) Savings provisions. This section does not - 

(1) restrict the disclosure of information to, or its receipt by, any person or class of persons authorized, in accordance with applicable agency regulations or procedures, to receive that information;

(2) restrict a contractor from disclosing its own bid or proposal information or the recipient from receiving that information;

(3) restrict the disclosure or receipt of information relating to a Federal agency procurement after it has been canceled by the Federal agency before contract award unless the Federal agency plans to resume the procurement;

(4) prohibit individual meetings between a Federal agency official and an offeror or potential offeror for, or a recipient of, a contract or subcontract under a Federal agency procurement, provided that unauthorized disclosure or receipt of contractor bid or proposal information or source selection information does not occur;

(5) authorize the withholding of information from, nor restrict its receipt by, Congress, a committee or subcommittee of Congress, the Comptroller General, a Federal agency, or an inspector general of a Federal agency;

(6) authorize the withholding of information from, nor restrict its receipt by, the Comptroller General of the United States in the course of a protest against the award or proposed award of a Federal agency procurement contract; or

(7) limit the applicability of any requirements, sanctions, contract; or penalties, and remedies established under any other law or regulation.

Text of the Procurement Integrity Act 49 U.S.C. Section 423

Below is the full text of the Procurement Integrity Act, 49 U.S.C. Section 423 (omitting only its Subsections (f) and (g), which are not applicable to FAA). This Act, as it applies to the FAA, is to be read in conjunction with the FAA Procurement Integrity Act definitions (which are also shown in this Toolbox Appendix). Please take special notice of 49 U.S.C. Section 423(h) below, which contains "Savings provisions", or situations where the Procurement Integrity Act does not apply.

§ 423. Restrictions on disclosing and obtaining contractor bid or proposal information or source selection information

(a) Prohibition on disclosing procurement information.

(1) A person described in paragraph (2) shall not, other than as provided by law, knowingly disclose contractor bid or proposal information or source selection information before the award of a Federal agency procurement contract to which the information relates.

(2) Paragraph (1) applies to any person who -

(A) is a present or former official of the United States, or a person who is acting or has acted for or on behalf of , or who is advising or has advised the United States with respect to, a Federal agency procurement; and

(B) by virtue of that office, employment, or relationship has or had access to contractor bid or proposal information or source selection information.

(b) Prohibition on obtaining procurement information. A person shall not, other than as provided by law, knowingly obtain contractor bid or proposal information or source selection information before the award of a Federal agency procurement contract to which the information relates.

(c) Actions required of procurement officers when contacted by offerors regarding non-Federal employment.

(1) If an agency official who is participating personally and substantially in a Federal agency in a Federal agency procurement for a contract in excess of the simplified acquisition threshold contracts or is contacted by a person who is a bidder or offeror in that Federal agency procurement regarding possible non-Federal employment for that official, the official shall - 

(A) promptly report the contract in writing to the official’s supervisor and to the designated agency ethics official (or designee) of the agency in which the official is employee; and

(B)  (i)  reject the possibility of non-Federal employment; or

       (ii) disqualify himself or herself from further personal and substantial participation in that Federal agency procurement until such time as the agency has authorized the official to resume participation in such procurement, in accordance with the requirements of section 208 of title 18, United States Code, and applicable agency regulations on the grounds that --

(I) the person is no longer a bidder or offeror in that Federal agency procurement; or

(II) all discussions with the bidder or offeror regarding possible non-Federal employment have terminated without an agreement or arrangement for employment.

(2) Each report required by this subsection shall be retained by the agency for not less that two years following the submission of the report. All such §reports shall be made available to the public upon request, except that any part of a report that is exempt from the disclosure requirements of section 552 of title 5, United States Code, under subsection (b)(1) of such section may be withheld from disclosure to the public.

(3) An official who knowingly fails to comply with the requirements of this subsection shall be subject to the penalties and administrative actions set forth in subsection (e).

(4) A bidder or offeror who engages in employment discussions with an official who is subject to the restrictions of this subsection, knowing that the official has not complied with subparagraph (A) or (B) of paragraph (1), shall be subject to the penalties and administrative actions set forth in subsection (e).

d) Prohibition on former official’s acceptance of compensation from contractor.

(1) A former official of a Federal agency may not accept compensation from a contractor as an employee, officer, director, or consultant of the contractor within a period of one year after such former official—

(A) served, at the time of selection of the contractor or the award of a contract to that contractor, as the procuring contracting officer, the source selection authority, a member of the source selection evaluation board, or the chief of a financial or technical evaluation team in a procurement in which that contractor was selected for award of a contract in excess of $10,000,000;

(B) served as the program manager, deputy program manager, or administrative contracting officer for a contract in excess of $10,000,000 awarded to that contractor; or

(C) personally made for the Federal agency—

(i) a decision to award a contract, subcontract, modification of a contract or subcontract, or a task order or delivery order in excess of $10,000,000 to that contractor;

(ii) a decision to establish overhead or other rates applicable to a contract or contracts for that contractor that are valued in excess of $10,000,000;

(iii) a decision to approve issuance of a contract payment or payments in excess of $10,000,000 to that contractor; or

(iv) a decision to pay or settle a claim in excess of $10,000,000 with that contractor.

(2) Nothing in paragraph (1) may be construed to prohibit a former official of a Federal agency from accepting compensation from any division or affiliate of a contractor that does not produce the same or similar products or services as the entity of the contractor that is responsible for the contract referred to in subparagraph (A), (B), or (C) of such paragraph.

(3) A former official who knowingly accepts compensation in violation of this subsection shall be subject to penalties and administrative actions as set forth in subsection (e).

(4) A contractor who provides compensation to a former official knowing that such compensation is accepted by the former official in violation of this subsection shall be subject to penalties and administrative actions as set forth in subsection (e).

(5) Regulations implementing this subsection shall include procedures for an official or former official of a Federal agency to request advice from the appropriate designated agency ethics official regarding whether the official or former official is or would be precluded by this subsection from accepting compensation from a particular contractor.

(e) Penalties and administrative actions.

(1) Criminal penalties. Whoever engages in conduct constituting a violation of subsection (a) or (b) for the purpose of either—

(A) exchanging the information covered by such subsection for anything of value, or

(B) obtaining or giving anyone a competitive advantage in the award of a Federal agency procurement contract, shall be imprisoned for not more than 5 years or fined as provided under title 18, United States Code, or both.

(2) Civil penalties. The Attorney General may bring a civil action in an appropriate United States district court against any person who engages in conduct constituting a violation of subsection (a), (b), (c), or (d). Upon proof of such conduct by a preponderance of the evidence, the person is subject to a civil penalty of not more that $50,000 for each violation plus twice the amount of compensation which the individual received or offered for the prohibited conduct. An organization that engages in such conduct is subject to a civil penalty of not more that $500,000 for each violation plus twice the amount of compensation which the organization received or offered for the prohibited conduct.

(3) Administrative actions.

(A) If a Federal agency receives information that a contractor or a person has engaged in conduct constituting a violation of subsection (a), (b), (c), or (d), the Federal agency shall consider taking one or more of the following actions, as appropriate:

(i) Cancellation of the Federal agency procurement, if a contract has not yet been awarded.

(ii) Rescission of a contract with respect to which - 

(I) the contractor or someone acting for the contractor has been convicted for an offense punishable under paragraph (1), or

(II) the head of the agency that awarded the contract has determined, based upon a preponderance of the evidence, that the contractor or someone acting for the contractor has engaged in conduct constituting such an offense.

(iii) Initiation of suspension or debarment proceedings for the protection of the Government in accordance with procedures in the Federal Acquisition Regulation.

(iv) Initiation of adverse personnel action, pursuant to the procedures in chapter 75 of title 5, United States Code [5 USCS §§ 7501 et seq.], or other applicable law or regulation.

(B) If a Federal agency rescinds a contract pursuant to subparagraph (A) (ii), the United States is entitled to recover, in addition to any penalty prescribed by law, the amount expended under the contract.

(C) For purposes of any suspension or debarment proceedings initiated pursuant to subparagraph (A) (iii), engaging in conduct constituting an offense under subsection (a), (b), (c), or (d) affects the present responsibility of a Government contractor or subcontractor.

(h) Savings provisions. This section does not - 

(1) restrict the disclosure of information to, or its receipt by, any person or class of persons authorized, in accordance with applicable agency regulations or procedures, to receive that information;

(2) restrict a contractor from disclosing its own bid or proposal information or the recipient from receiving that information;

(3) restrict the disclosure or receipt of information relating to a Federal agency procurement after it has been canceled by the Federal agency before contract award unless the Federal agency plans to resume the procurement;

(4) prohibit individual meetings between a Federal agency official and an offeror or potential offeror for, or a recipient of, a contract or subcontract under a Federal agency procurement, provided that unauthorized disclosure or receipt of contractor bid or proposal information or source selection information does not occur;

(5) authorize the withholding of information from, nor restrict its receipt by, Congress, a committee or subcommittee of Congress, the Comptroller General, a Federal agency, or an inspector general of a Federal agency;

(6) authorize the withholding of information from, nor restrict its receipt by, the Comptroller General of the United States in the course of a protest against the award or proposed award of a Federal agency procurement contract; or

(7) limit the applicability of any requirements, sanctions, contract; or penalties, and remedies established under any other law or regulation.

This is the link to the FAA Administrator's approval memorandum for the Procuremnt Integrity Act Definitions.

T3.1.9 Electronic Commerce (Original, July 2007) _{Added 7/2007}    

a. The FAA may use electronic commerce and signature when practicable and cost-effective.  With enactment of the Electronic Signatures in Global and National Commerce Act (E-SIGN), the FAA is encouraged to use electronic contract formation, signatures, and recordkeeping in commerce.  It also establishes legal equivalence between:

(1) Contracts written on paper and contracts in electronic form;

(2) Pen-and-ink signatures and electronic signatures; and

(3) Other legally-required written records and the same information in electronic form.

b. Definitions.

(1) Electronic Commerce: Electronic techniques for accomplishing business transactions, including, but not limited to, electronic mail or messaging, World Wide Web technology, electronic bulletin boards, and electronic data interchange.

(2) Electronic Signature:  A method of electronically signing an electronic message that identifies and authenticates a particular person as the source of the electronic message; and indicates such person's approval of the information contained in the electronic message.

a. Before using electronic commerce technology, the Contracting Officer (CO) must consult with legal counsel, information security, and information technology experts to ensure the proposed technology is legally supportable, does not weaken security of current systems, is consistent with enterprise-level standards, and does not utilize unsupported or outdated technology.   

b. When selecting a system for electronic commerce or signature, the procurement team (CO, program official, legal counsel, and other supporting staff) must ensure the system technology:

(1) Represents the best value to the FAA;

(2) Considers the full or partial use of current systems;

(3) Does not weaken the security of current systems or support outdated technology;

(4) Provides a means of access by all concerns, to the extent practicable;

(5) Properly identifies users and protects sensitive data from unauthorized access; and

(6) Does not violate any law, regulation, Executive Order, or FAA policy.

c. The CO must ensure that an electronic commerce and signature system is capable of ensuring authentication and confidentiality commensurate with the risk and magnitude of the harm of loss, misuse, or unauthorized access to or modification of the information.  The system must ensure that the records have:

(1) Authenticity:  Ensures that the record is what it purports to be and to have been created by the person who claims to have created and sent it;

(2) Integrity:  The records are complete and unaltered;

(3) Reliability:  Contents can be trusted to be a full and accurate representation of the transaction(s) to provide for a valid audit trail; and

(4) Usability:  Records can be located, retrieved, presented, and interpreted.

d. All parties (FAA and offeror/contractor) that will use the electronic commerce technology must agree in advance to the particular methodologies and format to be used, and to what extent the contractual action will utilize electronic commerce.  This CO must document this agreement.

e. The CO may authorize use of alternative forms of media, such as hardcopy drawings and schematic models, to supplement use of electronic commerce in a procurement action.

f. Records management and retention policies in FAA Order 1350.15C still apply to electronic commerce, and disposal guidelines must be strictly followed.

a.  Electronic signatures may be accomplished by several technologies, to include:

(1) Personal Identification Number (PIN) or passwords;

(2) Digital signatures;

(3) Smart cards; and

(4) Biometrics.

b. The CO must ensure that the name of the electronic signer and the date when the signature was executed are included as part of any electronic record.

See FAST Procurement Toolbox for applicable clauses.

None applicable.

T3.2.1 - Procurement Planning (Revision 6, July 2008) _{Revised 7/2008}    

A procurement request (PR) package initiates acquisition of supplies, equipment, real property, utilities, material, systems, services, or construction.  It is the basis for a Contracting Officer (CO) to plan, solicit, and award a contract, purchase order, delivery/task order, agreement, lease, modification, or other procurement action.   The PR package is used to define the requestor’s requirements so the CO can acquire supplies, real property, utilities, and services from or through other Government agencies, private and public organizations and institutions, and commercial vendors.

a. The program official with the requirement to be satisfied through a procurement action prepares the PR package.  The nature, value, and complexity of the requirement determine the exact content of the package.  For example, information needed for a single source contract modification differs from that required for a systems development requirement to be competitively procured.

b. As soon as a requirement becomes known, the program official should consult with the cognizant contracting organization, or CO if known, to determine the specific types of information needed for an acceptable PR package, and when the information must be provided.  Much of the information in a PR package is the foundation for a contractual instrument, so it should be complete in all essential aspects.  The Estimated Acquisition Lead-Time chart (see AMS Procurement Forms) may serve as a planning tool for both the contracting organization and program official to estimate lead-times for the various milestones applicable to a procurement.

c.   The following list represents information and documentation that may be required for a PR package.   This list is not all-inclusive nor will each item below apply to every procurement action:

(1)  Requisition committing funds

(2)  Statement of work, specification, purchase description, drawings, or other appropriate technical description of the requirement

(3)  Technical data items (such software design documents or test plans) to be delivered, Data Item Descriptions (defining data content, format, preparation instructions, and intended use), and Contract Data Requirements List

(4)  Independent Government Cost Estimate

(5)  List of potential vendors and addresses (including incumbent contractor, if applicable)

(6)  Delivery destination or place of performance and delivery date or period of performance (and optional quantities or periods)

(7)  Method and place of inspection and acceptance

(8)  List of Government furnished property or information

(9)  First article testing requirements

(10)  Federal standards that must be met, e.g., energy, environment, health, and safety

(11)  Physical, personnel, and information system security requirements

(12)  Contractor Personnel Position Risk and Sensitivity Level Determination- FAA Form 1600.77

(13)  Classified information or sensitive unclassified information handling requirements

(14)  Requirement for vendor’s descriptive literature or product samples

(15)  Brand name or equal or brand name mandatory justification

(16)  Warranty requirements which are over and above generally accepted warranty included with the purchase of an item/service

(17)  Liquidated damages justification

(18)  Requirement for value engineering provisions

(19)  Privacy Act compliance determination

(20)  Section 508 Rehabilitation Act determination of non-availability or undue burden

(21)  Reprocurement data requirements, spare/repair parts lists, or other special rights

(22)  Information about use of existing patents or copyrights

(23)  Performance or payment bond requirements

(24)  Requirement for insurance coverage or special indemnification

(25)  Support services labor categories and description of minimum qualifications

(26)  Support services single source justification

(27)  Requirement for key personnel clause

(28)  Requirement for Government consent to subcontracting clause

(29)  Personal services justification

(30)  Single source justification

(31)  Chief Financial Officer’s approval- Over $10 million (Note: The contracting office may accept a PR that lacks the Chief Financial Officer's (CFO) approval for applicable procurements over $10 million; however, the CFO approval must be received by the CO prior to the issuance of the Request for Offer (RFO))

(32)  Chief Information Officer’s approval for information technology over $250,000

(33)  Draft technical evaluation factors

(34)  Draft technical proposal instructions

(35)  Requirements for earned value management system, reports, and integrated baseline reviews

d. The program official submits the PR package to the appropriate contracting office, or assigned CO if known.  Unless otherwise required by local procedures implemented by mutual agreement between the PR-initiating organization and contracting office, documents in the PR package are in electronic format and annotated with a PR number and project title.   Materials accompanying a PR package that cannot be provided in electronic format, such as drawings, are delivered to the appropriate contracting office or assigned CO, and labeled with PR number, project title, and location.

a. The Chief Information Officer (CIO) must review and approve proposed procurement actions for information technology and service resources that are estimated to exceed $250,000 and would result in a new or modified:

(1) Contract;

(2) Order, such as those issued through a Federal Supply Schedule (FSS); or

(3) Agreement, to include interagency and intra-agency agreements.

b. Information Resources.

(1) Equipment or interconnected system or subsystem of equipment, that is used in the automatic acquisition, storage, manipulation, management, movement, control, display, switching, interchange, transmission, or reception of data or information by the FAA.

(2) Information resources include:

(a) Services (including support services):

(b) Computers;

(c) Ancillary equipment;

(d) Software; and

(e) Firmware and similar procedures.

(3) Information resources do not include any equipment that is acquired by a Federal contractor incidental to a Federal contract.

c. Review Process.

(1) For those proposed procurement actions for information technology and service resources that are estimated to exceed $250,000, the program official must submit the following information to AIO-3 for review:

(a) Statement of Work (SOW) or requirements documentation;

(b) Cost or price information, to include an independent Government cost estimate (IGCE) when required; and

(c) Documentation of market research conducted.

(2) The CIO review package may be sent to AIO-3 electronically through e-mail or in hardcopy form.

(3) Once approved by the CIO, the program official may then prepare the requisition.

(4) Prior to submission of the requisition to the contracting office, the program office must note the date of the CIO's approval in the body of the requisition.

d. Goals of CIO Review.

(1) Ensure that goals of the FAA Flight Plan are addressed in procurements involving information resources.

(2) Prevent redundant procurements.

(3) Ensure that the resource is compatible with the FAA's current or planned Enterprise Architecture.

(4) Ensure that information technology resources support FAA Business Processes.

(5) Promote and ensure information systems security.

(6) Identify potential savings or efficiencies.

a. A requisition provides basic information, such as appropriation data, item description, place of performance, and quantity/dollars needed to begin a procurement action.  It is also the means of reserving funds for the procurement.  Program officials must prepare requisitions in PRISM, the FAA’s automated requisitioning and purchasing system.  Contracting offices cannot accept manually prepared Form DOT F-4200.1, "Procurement Request,” equivalent hard copy PR forms, or manually signed PRISM-generated forms.

b. Electronic Routing.  Requisition review, funds certification, and approval are through electronic routing in PRISM and have the same force and effect as manual signatures.

c. Requisition Control and Numbering.  The functionality of PRISM governs requisition numbering in accordance with AMS Procurement Guidance T3.13.1.  Refer to PRISM business process solution “Award Types and PRISM Document Numbering Masks” for further information.

d. Requisition Amendment/Modification.  If additional funds are needed, the program official should either issue an amendment to the requisition prior to an award being released or should create a requisition for modification after the award is released.  Fund certification, review and approval are required for both an amendment or requisition for modification.  When the amount obligated for the contractual action is less than the amount funded on the requisition, the program official must decommit excess funds.  Because the original purpose of the requisition is considered complete, the requisition cannot later be amended to use the remaining funds either for the original purpose or for another purpose.

e. Canceling a Requisition.    Program officials may cancel a requisition prior to award by creating an amendment to decommit funding.

f. Funds Estimate. The requisition must indicate the total estimated cost of the requirement.  For basic requisitions for new contracts, this includes the estimated amount of the basic contract and all planned options and any other requirements that would not be included in or funded as part of the basic contract.  For contract modifications, this amount will be the total estimated cost of the action involved.  For requisition amendments and requisition for modifications, whether for new contracts or modifications, the estimated amount will be the net amount of any change to the estimate stated in the basic requisition, and in addition to the net amount, identify in the body of the requisition the cumulative total estimated cost.

g. Required Quantity.  This is the FAA's need, present and projected, for which funding is or will be available.  Quantity discounts and transportation costs must be considered when determining required quantity of supplies.  Quantities should not include those for which there are no funded requirements, or for options for which FAA has little expectation of exercising.  For indefinite delivery/indefinite quantity (ID/IQ) contracts, identify realistic minimum and maximum quantities.  For indefinite delivery/requirements contracts, the total estimated dollar amount for the requisition should be based on the total estimated quantity.  The dollar amount on the requisition should cover the minimum quantity.

h. For detailed instructions on preparing a requisition, program officials should refer to the PRISM Requisitioner Guide and Business Processes and Policy, available on-line at:  http://www.anm.faa.gov/anm50/prism/guideindex.htm

a. The requisition must include funds certification if it commits funds to be obligated later on a contractual instrument.  Funds certification verifies funds are reserved and certified as available, or funds are to be deobligated on an award or decommitted on a requisition.  Funds need not be certified on individual requisitions when "bulk funding" is used for Blanket Purchase Agreements (BPA).

b. The person certifying funds must be designated in writing in accordance with written procedures of the organization issuing the requisition, and must be instructed by that organization on his or her responsibilities, duties and authority limits.

c. An authorized requisitioner or approver may also certify funds when local conditions, such as remoteness or a small facility, make it necessary, provided:  written local procedures authorize this practice and establish reasonable maximum dollar levels for combined funds certification and approval or requisitioning authority, and include monitoring and oversight procedures to ensure propriety of all such actions.

d. Additional guidance and related business processes for funds certification can be found at the PRISM website (https://intranet.faa.gov/prism/training/guideindex.htm).

a. Only designated FAA employees can approve a requisition.  Approval levels are tied to the total estimated amount of the requisition to be approved, as follows:

(1)Washington Headquarters

(a)  Over $500,000--Office Head, Director, Product or Service Team Lead, or equivalent or higher position.

(b)  Over $250,000 to $500,000--Division Manager or equivalent position.

(c)  Up to $250,000--Branch Manager or equivalent position.

For Washington Headquarters, an Office Head, Director, Product or Service Team Lead, or equivalent position, as applicable, may delegate via memorandum approval levels differing from the above.

(2)  Service Areas, Regions, and Centers. Organizations approving requisitions within service areas, regions, and centers may establish written local requisition approval levels. Program officials should contact their local contracting office for information about approval levels.

b. Key duties and responsibilities for requisitioners, fund certifiers, approving officials, and those obligating funds (i.e. COs or others with delegated procurement authority) must be separated among individuals.  Due to local conditions, some duties may need to be provided by the same individual; however the following conditions will always apply in the processing of a requisition:

(1) An individual must never perform all duties;

(2) A requisitioner may be the fund certifier for the same requisition;

(3) An approving official and/or fund certifier may perform both approval and fund certification for the same requisition;

(4) A requisitioner must not be the approving official and/or CO for the same requisition; and

(5) A CO must never be the approving official or requisitioner for the same requisition.

c. Requisition approvers should refer to PRISM guidance and business processes found at the PRISM website (https://intranet.faa.gov/prism/training/guideindex.htm).

a. Technical Description.  An accurate technical description of the requirement is a critical element of a PR package and key to ensuring FAA’s needs are satisfied.  The program official prepares, to the extent possible, a comprehensive statement of work, specification, drawings or other description of the product or service to avoid any misinterpretation by prospective vendors about FAA’s requirements.  The technical description defines valid and minimum needs of the FAA, and is not written in a way that unduly restricts competition.  See AMS Procurement Guidance T3.2.2.8, "Describing Needs" for additional information.

(1)  Supplies or Equipment.  For supplies or equipment, the description should cover as wide a range of commercially available and proven products as possible.  It should avoid requirements for special manufacture, or requirements that may unnecessarily restrict competition.  In this way, a broad competitive base will be possible, prices will be held to a minimum, and good relations with offerors will be promoted.

(2) Services.  For services to be performed in accordance with a statement of work (SOW), the SOW addresses:

(a) What is the contractor to do?

(b) When is the contractor to perform the tasks?

(c) Who (qualifications and experience) should perform the tasks?

(d) Where are the tasks to be performed?

a. An independent Government cost estimate (IGCE) describes how much FAA could reasonably expect to pay for needed supplies or services.  The IGCE is an internal Government estimate, supported by factual or reasoned data and documentation, and serves as:  (1) the basis for reserving funds for the procurement action; (2) a method for comparing cost or price proposed by offerors; and (3) an objective basis for determining price reasonableness when only one offer is received in response to a solicitation.  The program official prepares the IGCE.

b. An IGCE includes a breakdown of major elements of cost, by category such as labor, material, equipment, subcontracts, travel, overhead, and profit.

c. An IGCE is required for any anticipated procurement action (to include modifications) whose total estimated value is $100,000 or more, except for:

(1)  Modifications exercising priced options or providing incremental funding;

(2)  Delivery orders for priced services or supplies under an indefinite-delivery contract; or

(3)  Acquisition of real property (i.e., land or space).

d. The CO may require an IGCE for those procurement actions (to include modifications) anticipated to be $100,000 or less.

e. The estimate and supporting documentation is for internal use only.  It should be made available only on a need to know basis and must not be provided to any potential offeror.   An IGCE must not be based on information furnished by any potential vendor that may be competing for the requirement or considered for award.  See AMS Procurement Guidance T.3.2.3 "Cost and Price Methodology" and "FAA Pricing Handbook" for detailed information about preparing an IGCE.

The program official furnishes evidence of certain required clearances, approvals, and justifications with the PR package.  This information varies, depending on the nature of requirement, procurement strategy, and dollar value.  The program official should consult with the CO to determine applicability of each of the below clearances, documentation, and approvals to the particular requirement.  Documentation or other evidence for the below forms part of the PR package (the below is not all inclusive nor will it apply to each procurement action):

a. Chief Financial Officer Approval.  For a single or cumulative expenditure over $10M, the CO must receive evidence of the Chief Financial Officer's (CFO) approval of the procurement prior to issuing a Request for Offer (RFO).  (See AMS Procurement Guidance T3.2.4 "Chief Financial Officer Requirements" for additional information.)

b. Deputy Administrator Approval of Support Services.  Requirements for single source support services (and for support services in which less than three offers were received) with a total estimated value of $1 million or more must be justified, reviewed by appropriate management officials, and approved by the Deputy Administrator.  (See AMS Procurement Guidance T3.8.2 "Service Contracting" for more information).

c. Accountable Personal Property.  FAA’s financial standards and annual audit require accurate recording of personal property acquisitions.  Before creating a requisition in PRISM, the program official must establish appropriate projects and tasks in the DELPHI Project Accounting (PA) module.  Each line item on a requisition must have at least one (but can have more than one) project and task associated with it.  The CO will use the line item structure contained in the requisition when setting up the Contract Line Item Number (CLIN) structure.

d. Government Furnished Property, Information, or Material.  The PR package identifies Government property, information, or material.  FAA property is managed, transferred, and added to FAA records through the Automated Inventory Tracking System (AITS).  Any special restrictions or conditions, such as property provided “as is,” security issues, or special handling should also be specified in the PR package.

e. Personal Property from Commercial Sources. Before initiating a requisition to obtain personal property, program officials must determine if the property is available for reuse from an FAA or other Government source, as required by FAA Order 4800.2C (May 31, 1996) and "FAA Reutilization and Disposition Process & Procedure Guide," dated October 2006, available on-line at:  http://ats.awa.faa.gov/aaf/afz/500/processguides/processguides.html

f. Project Materiel.  Materiel for projects is requisitioned through the Logistics and Inventory System (LIS) Project Materiel Management System (PMMS).  For further information on acquiring materiel, refer to the "Project/Materiel Management Desk Guide" available online at: https://intranet.faa.gov/FaaEmployees/org/staffoffices/aba/assets/material_management/

g. Section 508 of the Rehabilitation Act.   Acquisition of electronic and information technology (EIT) must comply with Section 508 requirements for accessibility.  The program official must document EIT non-availability, including market research performed and standards that cannot be met.  For further information, see AMS Procurement Guidance T3.2.2 "Source Selection," or the FAA Section 508 website at:  www.faa.gov/about/office_org/headquarters_offices/aio/e_gov/sec_508/

h. Personnel Security.  For individuals that may need access to FAA facilities, sensitive unclassified information, or resources, the contract security clause contains sufficient language to meet that objective.  For specific guidance and regulations, see the applicable personnel security orders (FAA Order 1600.1E “Personnel Security Program” and FAA Order 1600.72A “Contractor and Industrial Security Program”).  FAA Form 1600-77, "Contractor Position Risk/Sensitivity Level Designation Record" is used by the Operating Office to make initial position risk/sensitivity level designations based on the initial list of positions and the statement of work.

i. Sensitive Unclassified Information.  The program official must coordinate with the local FAA Servicing Security Element (SSE) for the minimum standards to mark, store, control, transmit, and destroy Sensitive Unclassified Information, For Official Use Only, Sensitive Security Information, or unclassified information that may be withheld from public release.  (See FAA Order 1600.75 or AMS Procurement Guidance T3.14.1 "Security" for additional information.)

j. Classified Information. The PR package should identify any requirements for handling of classified materials or for access of contractor personnel to classified information.  (See FAA Order 1600.2E “Safeguarding Classified National Security Information” for additional information).

k. Information Systems Security. The FAA must ensure that all information systems are protected from threats to integrity, availability, and confidentiality.  (See FAA Order 1370.82A for additional information.)

l. Paperwork Reduction Act.   The FAA must obtain approval to collect information through questionnaires, focus groups, telephone surveys, applications, performance reports, customer satisfaction surveys, studies and evaluations, interviews, forms, and other means of requesting information from 10 or more respondents.  The program official must first coordinate requirements through the FAA Information Clearance Officer (AIO-20), and then obtain clearance from Office of Management and Budget (OMB).

m. Privacy Act.  When a requirement involves the design, development, or operation of a system of records on individuals for an FAA function, the statement of work must identify FAA rules and regulations implementing the Privacy Act.  (See FAA Order 1280.1A “Protecting Privacy of Information About Individuals.”)

n. Printing or Duplicating or Purchase or Lease of Copying Equipment.  For printing or duplicating services to be performed either by Government Printing Office (GPO) or outside printing businesses, program officials must coordinate with the cognizant FAA printing management office.  Purchase or lease of duplicators or electronic copiers over $100,000 must be approved:   for Headquarters acquisitions, coordinate with the Corporate Information Division (ABA-10); Region, Center and Service Area acquisitions, coordinate with the servicing printing management organization.

o. NAS Specifications.   Specifications for acquisitions under the Capital Improvement Program (CIP) are baselined and under configuration control.   A requisition for NAS program specification change must include evidence of approval by the NAS Configuration Control Board.

p. Options. If optional quantities or services are to be included, the PR package should state the basis for evaluating the offerors' proposals. The PR package should indicate whether it is expected that offers will be evaluated for award purposes only on the basis of the price for the basic requirement exclusive of options, or price inclusive of options.

q. Warranty. Warranties should be cost beneficial.  For other than standard commercial warranty generally accepted as included with basic purchase price, the PR package should include an analysis of the costs of a warranty and its administration, versus the benefits of liability deferral.

r. Liquidated Damages.  Before liquidated damages provisions may be included in a contract, the program official must adequately justify and document the basis for amounts to be assessed.   (See AMS Procurement Guidance T3.8.7 "Construction Contracting" for more information.)

s. Brand Name Products.  When a brand name or equal description is used, the PR package must state the brand name product and salient physical, functional, performance, and interoperability or interface characteristics of the brand name product so that vendors may offer alternative but equal products.  Brand name-mandatory descriptions identify a specific make, model, or catalog number, and manufacturer of a product.   This type of description differs from brand name or equal because vendors may not provide an equal item.  For brand name-mandatory, a single source justification is required with the PR package.  (See AMS Procurement Guidance T3.2.2.8 "Describing Needs" for more information.)

t. Recovered Materials.  Program officials are responsible for defining product specifications, utilizing FAA’s minimum content standards or preference standards, when procuring EPA-designated items. The program official should provide a written determination certifying that the statement of work/specifications for materials/services specified complies with the FAA’s preference standards for recovered materials.   (See AMS Procurement Guidance T3.6.3 "Environment, Conservation and Energy" for additional information.)

u. Recycled Content.  Purchases of EPA-designated recycled content products must meet or exceed EPA guideline standards, unless price, performance, or availability justifies not doing so.  The program official should document this determination.  (See AMS Procurement Guidance T3.6.3 "Environment, Conservation and Energy" for additional information.)

v. Capital Versus Non-Capital Lease Determination. The FAA is required to capitalize certain improvements in both owned and leased space. In addition, the FAA (to include the Operating Office, RECO, and accounting) is required to make a determination as to whether leases (including real property leases) are capital or operating leases and insure they are recorded and filed accordingly.  (See AMS Real Estate Guidance 3.1.5 "Capitalization" for additional information and applicable forms.)

w. Personal Services.  Personal services contracts are permissible if appropriately justified and approved by senior management.  The PR package must include evidence of this approval.  (See AMS Procurement Guidance T3.8.2 "Service Contracting" for more information.)

x. Single Source Justification.    When in FAA’s best interests, a single source procurement may be appropriate.  The program official should prepare a justification documenting the rational basis for using a single vendor.  (See AMS Procurement Guidance T3.2.2.4 "Single Source" for additional information.)

y. Technical Evaluation Factors/Plan.    Technical evaluation factors must be approved before issuing a solicitation.  The program official must provide the factors and plan for evaluating technical proposals.

z. Earned Value Management System (EVMS).  An earned value management system (EVMS) is required for projects involving development, modernization, or enhancement estimated at $10M or more.  Program officials should consult with the FAA’s EVM  Focal Point (AJA-42) to determine appropriate EVMS certification, review, and reporting requirements.  (See AMS "Earned Value Management Guide" for additional information.)

a. Purchase Cards. When a requisition is used as the funding document for purchase card purchases, it must contain certification of availability of funds.  (See AMS Procurement Guidance T3.2.2.5 "Commercial and Simplified Purchase Method" for additional information.)

b. Blanket Purchase Agreement (BPA).  A requisition may be issued for a basic BPA, but is not necessary for individual orders (termed "calls") against the BPA. One or more BPAs may be established in response to a requisition.  The requisition identifies types of supplies or services to be purchased under the BPA, suggested sources of supply, estimated grand total and individual call dollar limitations, and person(s) to be authorized by the CO to make purchases.  BPA calls serve as the obligating documents and a requisition will be required to issue the first call.  If the BPA call is funded for a period of less than one year, a requisition for modification will be required to increase the funding.

a. Headquarters. Requirements for short-term lease, or rental, of conference space, or the long-term lease of other space (e.g., office, storage or special purpose), in commercial establishments in the Washington, D. C. metropolitan area, and requests for any GSA acquired space must be coordinated through the Headquarters Facilities Management Staff (ALO-100). The results of this coordination must be indicated on the requisition or an attachment.

b. Regions and Centers. Requirements for short-term lease of conference space not acquired through a purchase card should be coordinated with the real property organization of the applicable Region or Center office. The results of that coordination must be indicated in the requisition or an attachment.

Supply Support Program requirements are processed using the Logistics Inventory System (LIS) at the FAA Logistics Center.  Requisitioning through LIS, coordination, review, certification, and approval signature are completed electronically.

a. Real Property Responsibilities. For the regions and centers, the Real Estate and Utilities Branch, or for Washington Headquarters, the Facilities Management Staff (ALO-100), are the primary contracting offices for purchase and lease of real estate and for utilities. In requests for the lease or acquisition of real estate, or for acquisition of utilities services, the requiring office should initially contact the Real Estate Branch to determine an acceptable format for providing information requested by the Real Estate Branch. (e.g., whether the format should be that of a memo, a requisition, or other) The requesting office will complete the requisition itself later, after cost information becomes available for its completion. Initially, cost information would not be available, and remain to be developed in consultation with the Real Estate Branch. A representative of the Real Estate Branch should be included at every stage in the real estate acquisition or leasing process, whether this is to make initial inquiry, or to make contact with the property owner or his/her representative, or to approve required audit reports, or for other steps in the process.

b. General. The requisition should include the name, address and telephone number of the property owner (or his/her representative), if known, and a record of any and all contacts with the owner/representative. Remember however, that contacts with owner/representative should not be made unless the Real Estate Branch is involved. As a minimum, requisitions for real property should contain the information described below, by type of requirement.

c. Land Acquisition (Purchase or Lease). For such acquisitions, the PR package should include information for the RECO to begin the acquisition process.  Items for a new or renewal lease action include:

(1) The projected life of facility (total term requirement for real property).

(2) Intended use of property (e.g., VASI, REIL, VORTAC, ARSR, ASR), and amount and type of all required restrictive easements (e.g., 750, 1000, 1200 or 1500 foot radius; trees removed to XX feet).

(3) The legal description of the site and easements, expressed either in metes and bounds or as required by local land registries. If a legal description is not available, a legal description can be requested by a separate requisition transmitted to the Real Estate Branch.

(4) Drawings, to scale, of the property(ies) to be acquired, if available.

(5) Clearances. Environmental clearances, as follows:

(a) A statement that due diligence has been applied according to the requirements of the Comprehensive Environmental Response Compensation and Liability Act (CERCLA). The statement is based on at least a Phase I study and analysis of the site that will indicate the presence or absence of hazardous waste or toxic substances. Attach a copy of that study/analysis report. The Phase I report shall also indicate if further analysis is required in a Phase II study. This is accomplished using FAA Order 1050.19 (August 22, 1944), Environmental Due Diligence Audits (EDDA) in the Conduct of FAA Real Property Transactions. A licensed professional engineer of an appropriate environmental discipline shall sign reports for all audits performed by a contractor. Review and approval/certification of the EDDA is the responsibility of the regional Airway Facilities Division Manager.

(b) If it has been decided to acquire a site determined to have, or be subject to, hazardous material contamination, the PR package should include a statement of justification signed by the requiring office Program Manager/Division Manager, together with a Phase III cost/benefit analysis.

(c) A statement certifying that an analysis of environmental impacts has been accomplished according to FAA Order 1050.1D (December 5, 1986) National Environmental Policy Act. Environmental analysis may include a Categorical Exclusion (CATEX) or Environmental Assessment (EA) - which would culminate in a Finding of No Significant Impact (FONSI), or Environmental Impact Statement (EIS). These statements must clearly identify any environmental impact mitigation required, and the need for additional lease clauses to cover such mitigation. The Environmental Analysis shall also identify all environmental compliance permits for the project. Examples of permit activities are: wetlands permits from the Army Corps of Engineers, land use permits, special area, water use, and other local, federal and state permits as necessary.

d. Space Acquisition. For space acquisitions, the PR package should include the following information for the RECO to begin the acquisition process:

(1) The intended use of the space (e.g., AFS, FSDO).

(2) A five-year projected staffing chart including the number of authorized positions, by job title, which will use the space. Any projected staffing increases must be validated.

(3) Special Requirements. These include, but are not limited to:

(a) Authorized private offices;

(b) Wiring for data lines;

(c) 24-hour access/HVAC requirements;

(d) Temperature and humidity level limits;

(e) Local Area Network (LAN) rooms;

(f) Computer Based Instruction (CBI) rooms;

(g) Written examination room;

(h) Floor loads and types;

(i) Antennas attached to roof; and

(j) Special finishes.

(4) Number of parking spaces required.

(5) Recommended total lease term (base lease term plus renewal option(s)).

(6) Delineated area and map depicting the area.

e. Space Alterations/Improvements/Repairs (AIR). For this, the PR package should include:

(1) A full narrative description of work to be accomplished, supported by a clear sketch or drawing of proposed AIR; and

(2) Other related items, as stated in the paragraph just preceding.

f. Construction. For construction, the PR package should include:

(1) For Real Property Interests - Land. When the lease or purchase of land is involved, include a statement that such lease or purchase has been consummated. In rare circumstances, if there is written assurance the property owner will give that real property rights, and a written right of entry to begin construction has been provided, the PR may be processed if approved by the servicing Real Estate Branch.

(2) For Real Property Interests - Space. When a servicing contracting activity, that is, the contracting office, is requested to obtain construction, modification, alteration, and/or repair to leased space or buildings, care should be taken to ensure that the Real Estate Branch is involved in such leased space actions. The PR package must:

(a) contain a statement from the servicing real estate organization that approval from the property owner has been secured and the lease amended to cover FAA's requirements; and

(b) comply with all applicable requirements set forth in c.(2) and (3) above.

(3) Environmental Considerations. These include a statement certifying that all current requirements for Environmental Assessment and Due Diligence Audits have been met. (See the above paragraph c.(5) on environmental clearances.)

(4) Utility Requirements. When new or changed utilities, location or service is involved, state the status of obtaining utility service and the estimated date of its availability to the project.

(5) Vehicle or Pedestrian Safety. When the contract work will or may affect the traffic or safety of vehicles or pedestrians on the right-of-way of a public highway, road, or street owned by a governmental body other than the Federal Government, a statement that this is the case, and an identification of the governmental body which owns the highway, road, or street.  For further information, see AMS Real Estate Guidance.

a. Minimum Content. The PR package should contain information sufficient to enable the CO to determine the required type(s) of service, quantity, delivery point(s), time of initial service, service duration, and the principal characteristics of services. As a minimum, the PR package should contain the following:

(1) Technical description or specification of the type, quantity, and quality of service required;

(2) Date by which the service is required;

(3) Estimated maximum demand, monthly consumption, and annual cost for the first full 12 months of service;

(4) Schematic diagram or line drawing showing meter locations and Government connection point to utility supplier's system;

(5) Estimated cost, including: required utility services, any connection charges; and contractor installed facilities for replacement utility services; and

(6) Principal characteristics of service specifications. As a minimum, descriptions of the premises, or location to be served, in sufficient detail to clearly establish its identity by agency, function and address, as well as the service delivery point, and an attached map or drawing showing its exact location.

b. Electrical Service Specifications. The PR package should contain:

(1) Monthly kilowatt hour (kWh) demand for a typical year;

(2) Monthly kilowatt-hour (kWh) consumption for a typical year;

(3) Type of current (AC or DC);

(4) Number of phases;

(5) Anticipated load factor;

(6) Substation primary and secondary voltages, and allowable variations or tolerances; and

(7) Type of metering: (1) demand and/or watt hours, (2) kilovolt-amperes (kva) or kilowatts (kW).

c. Water Service Specifications. The PR package should contain:

(1) The required pressure and type(s) of water required (e.g., potable water, industrial water, classified as to extent of required filtration or chemical treatment; or raw water [river, lake, well, etc.]); and

(2) Exact location of connection with utility firm's distribution system.

d. Gas Service Specifications. These specifications should state the supplier's tariff. They should describe the desired British Thermal Unit (BTU) content, the purity, and the initial and terminal pressure limitations. They should also include:

(1) The estimated maximum demand per hour or per day;

(2) The estimated monthly usage of gas, by months, for a typical year; and

(3) The exact location of connection with utility firm's distribution system.

e. Sewer Service Specifications. These should specify the types of service required (e.g. sanitary with primary or secondary treatment, or raw waste disposal; industrial waste disposal; or storm water drainage). They should also include:

(1) The size(s) and location(s) of connections between Government and contractor systems; and

(2) The exact location of connection with the utility firm's distribution system.

a. The CO may return a deficient PR package without action, or stop work on a pending PR package until the program official submits any needed supplemental information.  Examples of reasons for returning or stopping work on a deficient PR package include:

(1) Incomplete or conflicting information between the requisition, specifications, drawings, or other solicitation data;

(2) Unstable requirements due to repeated technical changes to functional capability, reliability, maintainability, quality control, or testing requirements;

(3) Failure to include the appropriate stock number or item code, facility type code, and other required data applicable to each accountable item listed; or

(4) Missing or improper funding citation.

b.   In Washington Headquarters, the CO should return a deficient PR package by memorandum, signed by a Contracts Division branch manager, to the approver of the requisition.  The memorandum should include a brief explanation of deficiencies.

c. In Service Areas, Regions and Centers, COs should return PR packages in accordance with local procedures.

None Applicable.

See FAST Procurement Toolbox for applicable forms.

T3.2.1.2 - Market Analysis (Original, October 2006) _{Added 10/2006}    

(a)   Market research means collecting and analyzing information about vendor capabilities to satisfy FAA’s requirements.  This research can help discover novel or innovative solutions, eliminate excessively complex or unnecessary requirements, identify non-value added costs, and improve vendor’s responsiveness to subsequent solicitations.  Market research is performed in the early stage of procurement planning and helps shape an appropriate procurement strategy.

(b)  In many cases, market research is a shared responsibility between the program official and Contracting Officer (CO).  Market research may be for a one-time requirement, or as on-going surveillance to understand the marketplace for products or services acquired repetitively.   It may also be conducted internally to FAA or externally.  Examples of information gathered and analyzed include:

(1)  Potential vendors and their capability to satisfy FAA’s requirements;

(2)  Number of vendors, business size status, and extent and nature of competition;

(3)  Cost information and trends;

(4)  Expertise, experience, and depth of vendor personnel;

(5)  Maturity, adaptability, and complexity of current technology;

(6)  Product or service acceptability; 

(7)  Availability and delivery times of products or services;

(8)  Production processes, quality assurance practices, facilities, maintenance and logistics support capabilities;

(9)  Information about product design stability, planned design enhancements, and impact on fielded products;

(10)  Vendor capability to offer beneficial functional or performance trade-offs in their products or services;

(11)  Customer references and procurement histories of other organizations for same or similar products and services, including pricing and contract performance data;

(12)  Customary contract or license agreement terms and conditions; 

(13)  Practices of vendors engaged in producing, distributing, and supporting items, such as terms for warranties, buyer financing, maintenance and packaging, and marking;  and

(14)  Availability of suitable commercial or nondevelopmental items, or feasibility and cost of modifying commercial or nondevelopmental items to meet requirements.

(c)  The extent and depth of market research and analysis is tailored to the individual requirement, estimated dollar value, complexity, urgency, and past experience.  Market research may range from a telephone call or review of purchase histories to formal market surveys or solicitations requesting information.   Techniques for market research include:

(1)  Contacting knowledgeable individuals in Government and industry about market capabilities;

(2)  Reviewing the results of recent market research into similar or identical requirements;

(3)  Publishing formal requests for information in technical, scientific, business, or Government publications;

(4)  Querying on-line Governmentwide databases of contracts and other procurement instruments intended for use by multiple agencies available at:   www.contractdirectory.gov 

(5)  Reviewing Government and commercial databases that provide relevant information;

(6)  Participating in interactive, on-line communication among industry, acquisition personnel, and customers to exchange information about current or planned vendor capabilities as it relates to FAA needs;

(7)  Obtaining source lists of similar items from other contracting activities or agencies, trade associations or other sources;

(8)  Reviewing catalogs and other generally available product literature published by manufacturers, distributors, and dealers or other related information available on-line;

(9)  Reviewing  trade journals, directories, newspapers, and other professional publications;

(10)  Presolicitation conferences;

(11)  One-on-one meetings with vendors; and

(12)  Formal market surveys.

(d)  Analysis of information gathered through market research is documented proportionately to the value, complexity, and urgency of the acquisition.

(e)  A “market survey” is used in two different contexts in AMS.  In the procurement process, it refers to any method used to survey industry to obtain information and comments, and to determine competition, capabilities, and estimate costs.  In the context of the lifecycle management process, market surveys are part of Concept and Requirements Definition, and Investment Analysis.  During these lifecycle phases, market surveys provide information about the range of alternatives and market capabilities, risk, and cost of potential solutions to mission need. 

(f)  For procurements not under a program with an approved Exhibit 300 Attachment 3: Implementation Strategy and Planning, market analysis initiates industry involvement, develops and refines the procurement strategy, obtains pricing information, determines whether commercial items exist, determines the level of competition, identifies market practices, or obtains comments on requirements.

None applicable.

None applicable.

T3.2.1.3 - Implementing OMB Circular No. A-76 (Revision 3, October 2008) _{Revised 1/2009}    

OMB Circular No. A-76, "Performance of Commercial Activities," states the policy of the Government to: (a) rely generally on private commercial sources for supplies and services, if certain criteria are met, while recognizing that some functions are inherently Governmental and must be performed by Government personnel; and (b) consider relative cost in deciding between Government and contractor performance. In comparing the costs of Government and contractor performance, the Government bases contractor's cost of performance on firm offers.

a. The FAA follows A-76 policy and procedures, except when the Circular is inconsistent with AMS or other FAA statutory authority. The Circular requires compliance with the Federal Acquisition Regulation (FAR), such as when conducting standard and streamlined competitions, publicizing competitions, when establishing certain roles or responsibilities, and some decision-making. References to FAR, FAR-based processes or terminology, or other Government procurement requirements in the Circular are not applicable to FAA.

b. Procurement procedures, except as noted in this guidance, are based on AMS procurement policy (section 3.0) and guidance (Procurement Toolbox). AMS is used to plan procurements; solicit, evaluate and select sources; resolve protests and disputes; and manage contracts.

c. Except as described in this guidance, AMS-required decisions, mandatory planning documents, and lifecycle phase-related activities described in AMS policy (sections 1.0 and 2.0) are not applied to Circular A-76 competitions. AMS documentation, when applicable, is appropriately tailored. Joint Resources Council decisions follow A-76 milestones rather than AMS phases.

a. Service Director of the organization responsible for conducting A-76 competitions:

Appoints an acquisition team to lead the competition. An acquisition team is a cross-functional, empowered team given an operating budget and resources necessary to acquire specific services identified as commercial in nature by a Federal Activities Inventory Reform (FAIR) Act inventory.

b. Acquisition Team

(1) Develops an Implementation Strategy and Planning (ISP) document, tailored as necessary.

(2) Develops public announcements, evaluation criteria and plans, screening information requests, evaluation reports, and debriefs potential service providers.

c. Joint Resources Council (JRC):

(1) Prior to issuance of the official start date (public announcement):

(a) Baselines the cost of as-is performance;

(b) Approves the acquisition strategy;

(c) Revalidates the need for the function identified in the functional scoping study.

(2) Prior to issuance of the final screening information request (SIR):

(a) Establishes an activity cost baseline (independent government cost estimate);

(b) Approves the ISP and Risk Management Plan;

(c) Approves the Performance Work Statement (PWS) and Quality Assurance Surveillance Plan (QASP).

(3) Prior to Source Selection decision:

(a) Approves the final cost baseline;

(b) Approves the recommended source selection decision.

The general process for the public-private competition within a competitive sourcing study falls into four distinct phases: Preliminary Planning, Public Announcements, Competition Procedures, and Post Competition Accountability.

The general process for the public-private competition within a competitive sourcing study falls into four distinct phases: Preliminary Planning, Public Announcements, Competition Procedures, and Post Competition Accountability.

a. Functions. Before initiation of a competition, a FAIR Act inventory will have already identified the function or activity as a commercial activity suitable for competition; the existing service is deemed to satisfy needed capabilities.

(1) A functional scoping study conducted during the preliminary planning phase of a public-private competition inventories functions that deliver "as is" services/capabilities. It also determines whether users have continued need for all, some, or none of those services. The functional scoping study incorporates mission need related activities and is used to document mission requirements. Therefore, a Mission Need Statement is not prepared.

(2) From the functional scoping study, an initial set of technical and performance requirements is derived and documented in a functional scoping summary document  (FSSD). The FSSD refines functions and subfunctions to describe minimum, required levels of technical performance. Functions are described in such a way as they can be measured and evaluated. The FSSD is developed before the public announcement and approved by the JRC.

b. Market Survey. A market survey is conducted to determine if sufficient interest and capability exists in the marketplace to perform the service being competed. This market survey is in lieu of AMS-prescribed investment analysis activities. A Requirements Document, Investment Analysis Report, and Acquisition Program Baseline are not required.

c. Initial Acquisition Strategy. A high-level acquisition strategy is developed and approved by the JRC.

d. As-is Cost Baseline.

(1) A cost baseline is developed for the service as it is currently provided. This cost baseline is presented to the JRC for information before the public announcement.

(2) Baseline costs for the competition are calculated in accordance with the guidance provided in Attachment C of OMB Circular A-76 (Revised).

The public announcement starts the competition process. The announcement indicates that the FAA will conduct the source selection in accordance with AMS. The FAA uses Contract Opportunities (www.faaco.faa.gov) to make public announcements. Information posted on Contract Opportunities is automatically copied to FedBizOps.

a. Stakeholder Involvement. A overarching goal is user and/or customer satisfaction along with achievement of planned value and performance levels. This requires the acquisition team to work with key stakeholders, including affected employees and associated collective bargaining units, to ensure that all issues necessary for success are identified and resolved.

b. Notice of OMB Waivers. Any specific deviations from the Circular that require a waiver from the OMB will be described in the SIR and public announcement.

c.AMS Planning Documents. The detailed strategy for the overall program is defined in an Implementation Strategy and Planning (ISP) document. An ISP is:

(1) Prepared to describe program actions and activities;

(2) Developed prior to release of the final SIR; and

(3) Approved by the JRC.

d. Availability of Data. Historical data and other information available to the ATO or the MEO Team are made available by the Contracting Officer (CO) to all prospective providers. However, information related to the performance or productivity of an incumbent MEO is not released.

e. Source Selection.

(1) An ISP, appropriately tailored, describes the specific procurement approach to be used.

(2) The Source Selection Authority (SSA) in the Circular is synonymous with the FAA’s Source Selection Official (SSO).

(3) Use of AMS clauses "Notice of Cost Comparison" and "Right of First Refusal of Employment" is mandatory. The public announcement also states that award to a private potential service provider is contingent on results of the cost comparison.

(4) Cost and pricing data is required from all potential service providers in accordance with the Circular. Common costs will be identified in the SIR.

(5) The SIR includes a requirement for potential service providers to submit a quality control plan.

(6) Special Considerations

(a) Private sector offers and agency tenders are not evaluated separately. The CO, SSO, and evaluation team ensure that all potential service providers are treated fairly.

(b) Deficiencies in an offer or tender are handled by the CO in accordance with the provisions of Attachment B of the Circular.

(c) To the maximum extent possible, Government property is made available for use by service providers. The acceptance and use of such property, however, is not mandatory.

(7) Within three days after contract award, the CO provides written notice to each potential service provider remaining in the competition, but not selected for award. This notice includes:

(a) The number of potential service providers solicited;

(b) The number of proposal received;

(c) The name and address of each potential service provider receiving an award;

(d) The items, quantities, and any stated unit prices of each award (The total contract price may be furnished if it is impractical at this time to provide unit prices but the unit prices must be made available upon request.);

(e) In general terms, the reasons the potential service provider’s proposal was not accepted, unless the price information reveals the reason. In no event shall a potential service provider’s cost breakdown, profit, overhead rates, trade secrets, manufacturing process or techniques, or other confidential business information be disclosed to any other potential service provider.

f. Period of Performance.

(1) Contracts awarded under the Circular are for a minimum of three years, excluding the phase-in period. OMB approval is required for performance periods exceeding five years, excluding the phase-in period. Performance periods for the agency tender and for private sector potential service providers will be identical.

(2) Potential service providers, including the MEO, propose a phase-in plan to replace the incumbent service provider. The plan, intended to minimize disruption and start-up requirements, considers recruiting, hiring, training, security limitations, and other special considerations. The phase-in period is considered the first performance period of a new contract.

g. Contests. The FAA will follow the FAA Dispute Resolution process in total, which supercedes the provisions of Section B, Part F, of the Circular. The Office of Dispute Resolution for Acquisition (ODRA) is available to assist all parties of an A-76 acquisition, including the MEO, when objections arise concerning the competition or source selection decision.

h. No Satisfactory Response. If no satisfactory offer or tender is received in response to an A-76 solicitation, the CO determines the reasons for non-responsiveness and proposes a course of action to the Competitive Sourcing Official (CSO). The CSO then takes action in accordance with the provisions of Attachment B to the Circular.

i. New Technology and Operational Processes. There is no required testing of existing services when they become the responsibility of a new service provider unless new services or technologies are introduced. The purpose of test and evaluation remains the mitigation of potential operational risks and the verification of operational readiness for the In-Service Decision. The Acquisition Team determines the type of testing, if required, prior to transition to a new service provider. An In-Service Decision is not required to deliver a set of services using existing technology or processes. The In-Service Decision is a key program milestone if new technology or service concepts are introduced as a result of the competition or during the service delivery timeframe.

j. Lessons Learned. The office responsible for conducting the acquisition maintains a data base of lessons learned from each competition to ensure a consistent competition process and development of best practices.

k. Competitive Sourcing Official (CSO). The CSO is responsible for the implementation of the Circular within the FAA. Specific duties of the CSO are spelled out in the Circular.

a. In-Service Management begins when the new service provider initiates phase-in. At this point an organization known as the Continuing Government Activity (CGA) assumes responsibility for monitoring and assessing performance of the service provider. Members of the CGA are appointed by the responsible service director. The manager of the acquisition team coordinates closely with the manager of the CGA to assure a smooth transition of responsibilities.

b. For a performance decision favoring the agency, the CO establishes an MEO letter of obligation with the official responsible for performance of the MEO. Appropriate portions of the solicitation and the agency tender are incorporated into the letter of obligation which is then distributed to appropriate individuals, including the ATO.

c. The CGA will accomplish the post competition accountability procedures required by the Circular and will institute the appropriate monitoring mechanisms.

a. In accordance with the FAA Performance Management System (PMS) Chapter 1, paragraph 14, Federal civilian employees serving competitive or excepted service appointments in Tenure Groups I, II, or III, who are identified for release from their competitive level by the FAA as a direct result of a performance decision resulting from a Circular competition are considered adversely affected employees.

b. The new service provider must give such employees the right of first refusal for employment openings under the contract in positions for which they are qualified, if that employment is consistent with post-Government employment conflict of interest standards.

c. Within 10 days after contract award, the CO provides the new service provider a list of all Government employees who have been or will be adversely affected or separated as a result of the award. The new service provider then reports, within 120 days after contract performance begins, the names of individuals identified on the list who were hired within 90 days after contract performance began.

a. The Agency Tender is the FAA management plan submitted in response to a Circular competition. It includes the MEO, a cost estimate, an MEO quality control plan, an MEO phase-in plan and other elements required by the Circular and the SIR. It is not required to include a labor strike plan, a small business strategy, a subcontracting plan goal, participation of small disadvantaged businesses, licensing or other certifications, nor past performance information (except in unique circumstances identified in the Circular). The date for delivery of offers and tenders is the same.

b. When preparing the Agency Tender the MEO Team may consider the use of commercial contractors or teammates to help achieve performance requirements. In such cases the MEO is required to comply with the AMS.

Click here to access applicable clauses http://conwrite.faa.gov/

None applicable.

T3.2.1.4 - Chief Financial Officer Requirements (Revision 5, January 2008) _{Revised 1/2008}    

a. The Administrator, in a memorandum dated August 11, 2005, directed the Chief Financial Officer (CFO) to exercise greater control and fiscal oversight over FAA contracting, specifically by giving the CFO approval authority over all proposed procurement actions of $10 million or more.  This control and fiscal oversight were further clarified when the CFO, in his Administrator’s delegated role as the FAA’s liaison to the DOT Office of Inspector General (OIG), provided the official FAA response to OIG Report Number Fl-2006-072, Audit of Federal Aviation Administration’s RESULTS National Contracting Service, in a memorandum dated September 15, 2006.  To accomplish the greater control and fiscal oversight, FAA program offices must submit these proposed procurement actions for CFO review to the Office of Financial Controls early enough in the acquisition process so that CFO participation can be effective.  Review of potential commitments that have already been negotiated or otherwise finalized to the extent that there is little left to do but execute the document does not provide the CFO opportunity for effective contributions.

b. The CFO approval requirement applies to procurement actions for supplies, equipment, materials, systems, services, construction, real property (e.g. utilities), or other items where the total potential contract value or contract ceilings including options would be $10 million or more.

c. CFO approval is required on all original actions of $10 million or more that would result in one of the following:

(1)  New contract, including letter contract;

(2)  New agreement (interagency, intra-agency, not-to-exceed orders, other transaction, or cooperative agreement);

(3)  Basic ordering agreement (BOA)/blanket purchase agreement (BPA) where the potential value equals or exceeds $10 million as well as any individual orders on a BOA or BPA that equals or exceeds $10 million; and

(4)  Other procurement actions or any other binding commitment, such as a lease.

d. CFO approval is required on all modification actions (except as noted in paragraph e., below) to existing contracts, orders, or agreements where the following applies:

(1)  Any individual modification or combination of modifications, to an existing contract of less than $10 million, which increases the total value or ceiling to $10 million or more;

(2)  Any individual modification or combination of modifications previously not approved by the CFO to a contract with a ceiling or value of $10 million or more, that increases the base value (the total ceiling or value previously approved by the CFO) by the lesser of either 15 percent or $10 million. 

Note:  The 15 percent is to be applied to a “base value” which is the value for the contract or other type of agreement that has been approved by the CFO.  This value is set at two distinct events: 

(i) at the time of initial approval of the planned contract or other agreement; and  

(ii) when CFO approval of modifications is received, the base value is reset to include the value of the modifications, and for contracts awarded before October 1, 2005, the base value is the contract ceiling or value that includes modifications accrued through September 30, 2005.      

(3)  Any modification to an existing contract of $10 million or more that results in a significant change to the statement of work. (The specific conditions involved with this approval will vary according to several factors, including the magnitude of the change to contract scope of work/requirements.  The Office of Financial Controls is available for consultation with any program office to discuss questions concerning these conditions).

e. The CFO review and approval is not required for incremental funding actions under contracts, orders, or agreements; or exercising of priced options which were included in the total estimated contract value as part of a procurement action previously reviewed and approved by the CFO.  Also, modifications for incremental funding or exercise of priced options under contracts awarded before October 1, 2005, do not need CFO approval as long as there is no change in scope, contract ceiling, or contract value.

f. Procurement actions must not be split to avoid CFO approval of actions of $10 million or more.

g. For procurements that meet the threshold for CFO review, market research and analysis is required.  It needs to be conducted in time to be documented in the package submitted the Office of Financial Controls for CFO approval.  The level of market analysis should be commensurate with the size and complexity of the acquisition (see AMS T3.2.1.2)     

h. The contracting officer must not release a Request for Offer (RFO) prior to receiving CFO approval. This requirement applies to both competitive and non-competitive procurements. (This paragraph relates to the timing of the CFO approval and does not override the descriptions in paragraphs b. through g. of what requires CFO approval.)

i. The program official will get the CFO’s approval by submitting a Request for Approval of Chief Financial Officer form to the Office of Financial Controls.   The Request for Approval of Chief Financial Officer template can be found in FAST under the Procurement Form Templates.   The template includes a checklist of questions and requires submission of a business case, statement of work, and independent government cost estimate (IGCE) for each proposed acquisition that meets the criteria for submission to the CFO.

j. The program official must provide a copy of the Office of Financial Controls’ approval note, including all imposed conditions, and the CFO signature page to the contracting officer.

k. CFO approval is specific to the business case, statement of work and independent Government cost estimate provided to the Office of Financial Controls prior to approval.  The criteria below provide guidance on proper procedures to follow if there are significant changes to the business case, statement of work and/or IGCE subsequent to CFO approval:

(1)  If, after CFO approval, the requirements do not change, but the revised cost estimate, negotiated amount, or selected offer is 15 percent or more than the IGCE estimate approved by the CFO, the revised estimate and an explanation for changes must be submitted to the Office of Financial Controls for an updated approval;

(2)  If, after CFO approval, the requirements do not change, but the revised cost estimate, negotiated amount, or selected offer is 15 percent or less than the IGCE estimate approved by the CFO, the program office must submit to the CFO an explanation of why the initial estimate was overstated;

(3)  If, after CFO approval, there are significant changes to CFO-approved contract statement of work, the program office must submit a revised Statement of Work to the Office of Financial Controls for an updated approval.  (The specific conditions involved with this approval will vary according to several factors, including the magnitude of the change to contract scope of work/requirements.  The Office of Financial Controls is available for consultation with any program office to discuss questions concerning these conditions).

l. After contract award, the Office of Financial Controls will request information regarding the contract amount, compliance with any conditions/requirements in the CFO’s approval, and other information which must be provided to CFO for follow-up action.

Capitalization allows the FAA to accurately record the value of its assets and to generate reliable information for financial statements required by the Chief Financial Officers Act.  The Contracting Officer and requisitioning/program office personnel are to comply with capitalization requirements and processes outlined in:

(1) FAA's Office of Financial Management's (AFM) Asset Capitalization Desk Guide, (referred to as the "Blue Book");

(2) National Capitalization Team;

(3) Policy statements on projects and fixed assets http://Delphi.faa.gov (Intranet Only) (from this site, select "Policy Board Decisions"); and

(4) Capitalization of FAA Assets – Contract Structuring and the Impact of DELPHI  http://intranet.asu.faa.gov/asu300/Docs/SOP/Contracting/SOP-Capitalization-Contract-Structuring-Impact-of-DELPHI.doc  (Intranet Only).   This document was developed by the National Capitalization Team and is applicable FAA-wide.

  Click here to access applicable clauses

Request for Approval of Chief Financial Officer

Sample Templates for IGCE Submitted with CFO Business Case

T3.2.1.5 - Disaster or Emergency Preparedness and Response (Revision 3, October 2008) _{Revised 1/2009}    

(a)  The Contracting Officer (CO) may set-aside procurements for competition among only offerors residing or doing business primarily in an area where the President has declared a major disaster or emergency.  A major disaster may result in numerous Presidential declarations spanning counties in several contiguous States.   The CO, in consultation with the program official, defines the specific geographic area for the local area set-aside.  This set-aside area need not include all the counties in the President-declared disaster or emergency area, but cannot go outside it. 

(b)   The CO may use other methods to give preference to offerors residing or doing business primarily in the area affected by a disaster or emergency to the extent practicable.   For example, the CO may use the local area preference as an evaluation factor for award. 

(c)  The CO may also combine a local area set-aside with a small business set-aside. 

(d)  A local area set-aside does not eliminate other AMS requirements for procurement, such as competition considerations.

a. General.

(1) Continuity of mission critical contracts during times of National Emergency or Incidents of National Significance, such as pandemic influenza, is required to ensure the integrity of the FAA and the National Airspace System (NAS).  The program office must identify to the contracting office those contracts that are required to ensure continuity of critical supplies and services and at what level these supplies and services must be delivered.  Critical contracts may include:

(a) Support for communication infrastructure;

(b) Supplies and services for crucial transportation support;

(c) Supplies and services for facility security; and

(d) Support for emergency response activities.

(2) The Contracting Officer (CO) must include clauses ensuring that the tasks and deliverables from mission critical contracts are continued during times of National Emergency or Incidents of National Significance.  This is to include a requirement for the submission of a Continuity of Contract Performance Plan to the CO by the contractor that addresses how the contractor will continue to provide supplies and services at the contracted level if a National Emergency or Incident of National Significance should occur.

(3) The Continuity of Contract Performance Plan must be reviewed and accepted by the FAA Emergency Planning Staff.

(4) If a contract is deemed non-critical by the program office, the CO must suspend or stop the contract during an emergency until it is determined conditions are favorable for non-critical contracts.

(5) Management must identify COs and Contracting Officer's Technical Representatives (COTRs) on mission critical contracts that can assume the roles of CO and COTR, if the primary personnel are unavailable, in times of National Emergency or Incidents of National Significance.

b. National Emergencies or Incidents of National Significance include, but are not limited to:

(1) Outbreak of pandemic influenza or infectious disease;

(2) Terrorist attack;

(3) Natural disaster.

c. The Continuity of Contract Performance Plan must address:

(1) Plans and procedures;

(2) Identification of essential functions;

(3) Delegations of authority, planned order of succession, and cross-training to ensure personnel are available to provide services and make key decisions;

(4) Proposed alternate operating facilities;

(5) Interoperable and Effective Communications;

(6) Critical records or data;

(7) Protection of human capital;

(8) Testing and training of the plan;

(9) Devolution of control and direction; and

(10) Reconstitution and resuming normal operations.

d. Further information regarding the FAA's reaction to a National Emergency or Incident of National Significance and content of the Continuity of Contract Performance Plan can be found in the National Response Plan and the National Strategy for Pandemic Influenza Implementation Plan:

National Response Plan: www.dhs.gov/nrp

National Strategy for Pandemic Influenza Implementation Plan: http://www.whitehouse.gov/homeland/pandemic-influenza-implementation.html

See FAST Procurement Toolbox for applicable clauses.

None.

FAA Emergency Procurement Guide

This guide is for the use of FAA personnel when responding to a bona fide emergency, incident of national significance, or aiding in disaster relief efforts.  This guide supplements and summarizes FAA Acquisition Management System (AMS); specific policy and guidance for FAA procurement can be found at http://fast.faa.gov.

Emergency: A sudden, unforeseen event that requires action to correct or to protect lives or property.

The flexibilities in this guide may be used:

1. In support of FAA contingency operations or restoration of the NAS;

2. To facilitate the defense against or recovery from nuclear, biological, chemical, or radiological attack against the

3. When the President declares an incident of national significance, emergency declaration, or a major disaster declaration.

Unauthorized Commitments:  DO NOT make commitments or promises of any kind to bind the Government if you are not a properly warranted Contracting Officer (CO) or an authorized holder of a purchase card and the requirement is within your warrant or delegation.

When purchasing goods or services in an emergency, COs and cardholders must ensure that applicable FAA security standards are properly addressed and adhered to.

Purchase Cards

The purchase card is a valuable tool that can be utilized to procure requirements in times of emergency.  Despite the presence of an emergency situation:

• Single and monthly limits established for the card account by the Chief of the Contracting Office (COCO) in the cardholder’s Delegation of Purchasing Authority (DPA) must still be strictly adhered to; and
• The person making the purchase must be the cardholder on the card account and have a valid DPA issued by the COCO.

Emergency Spending Limits

The maximum single purchase limit that can be assigned to purchase card is $100,000, while the maximum billing cycle or monthly limit is $999,900.  The COCO establishes both limitations based on justification and recommendations of a cardholder’s approving official.  If a cardholder is designated or tasked to respond to emergencies or participate in relief efforts, that individual’s single and monthly limit can be raised to a level that allows for an efficient and effective emergency response.

A warranted CO can make purchases up to $100,000 using a purchase card (if within their warrant limits); however the maximum Single Purchase Limit that may be issued to an un-warranted cardholder is $10,000.  If a non-warranted cardholder wishes to have a single purchase limit above $10,000 (up to the $100,000 maximum) for emergency operations, the individual must receive written approval from the COCO.

Prohibited Purchases

The following items cannot be purchased using a government purchase card:

• Long-term rental or lease of land or buildings
• Cash advances, including money orders
• Telephone services controlled by the GSA or the local Office of Information Services or Regional Communications Office
• Cellular or communication devices and services covered by the National Wireless Program Office (NWPO)
• Personal purchases or services
• Travel-related expenses
• Obtain Government owned or leased vehicles

Restricted Purchases

• Drinking water, except when:
  • A duly constituted health authority pronounces the drinking water to be unsafe for human consumption at the site;
  • A viable and safe water source for FAA personnel is not available on or within a reasonable distance of the worksite;
  • FAA personnel reasonably foresee a disaster or emergency, such as the imminent landfall of a hurricane (See AMS Procurement Guidance 3.2.2.5 for additional restrictions); or
  • The drinking water is provided in a controlled environment to enable collections for drug use analysis for safety sensitive positions.
• Food items for meetings and conventions, except as detailed in AMS Procurement Guidance 3.2.2.5.
• Gifts to include store gifts cards/certificates or office retirements (Note that authorized office retirement plaques are not gifts and fall under non-cash awards)
• Membership fees for individual employees (the agency may purchase membership in a society or association in its own name)
• Subscriptions to publications or magazines not relating to official duties
• Clothing (or personal apparel of any description); requirements for special type clothing necessitated by agency requires written justification from the requestor’s supervisor and should be coordinated with legal counsel
• Rental of aircraft by persons not in aircraft related positions
• Fans, air conditioning and cooling equipment, space heaters and heating equipment, except as properly installed for general use in connection with the maintenance and operations requirements for the site.
• Water coolers, or vacuum cleaners and other household appliances (i.e. refrigerators, microwaves, etc), except as requisitioned for general use by the authorities charged with building maintenance and equipmentPlaques, trophies, etc. (exceeding $75.00) given to employees for high quality work or special projects (See AMS Procurement Guidance 3.2.2.5 for additional information) Services over $2,500
• Construction over $2,000

Purchase Card Flexibilities

See the Emergency Procurement Flexibilities section below in this guide.

Purchase Card Dos and Don’ts

• Be sure not to charge travel related expenses on the purchase card.
• Ensure that funding is available and approvals are received.  Despite the presence of an emergency, funding must be available prior to purchase.
• Never allow anyone else to use your purchase card.
• Secure the card at all times and immediately report lost or stolen cards to the Agency Program Coordinator (APC) and bank.
• Ensure that vendors understand that FAA is exempt from sales tax.
• Never exceed assigned single or monthly purchase limits.
• Never split a purchase to avoid single or monthly purchase limits.

Credit Card Checks

• For those vendors that don’t accept a purchase card, credit card checks have a single purchase limit of $2,500.

Procurement Resources and Tools for Emergencies

Mailing Lists: Keeping a mailing list of vendors for a given locale for various supplies or services may prove useful when emergency response limits time for market research.  Some if not all regional procurement offices have lists available, and can be easily formed.

Qualified Vendors List (QVL): A QVL is a mailing list where vendors submit their background (to include experience, certifications, etc) to the FAA to qualify to be on the QVL. As requirements become known, QVL vendors compete for award.   A QVL can be useful where lists are needed in specialized areas such as NAVAIDS, electrical, EPDM roofing, or EFIS siding.

Blanket Purchase Agreement (BPA)

• If an area finds a recurring need for a supply or service during an emergency response, the procurement office can establish BPAs locally.
• Individuals can be identified by the CO as authorized users of the BPA and can place purchases or “calls” against it.
• A BPA can be established with zero funding, and when needs arise it can be funded per action or in “bulk.”
• BPAs can be established with either local or national vendors depending on the need.
• BPAs can be established with multiple vendors for the same need.

Indefinite Delivery/ Indefinite Quantity Contract (ID/IQ)

• If a need is known but the schedule and quantity are unknown, an ID/IQ contract can be a valuable tool.
• An ID/IQ contract can be established with a single or multiple vendors.
• An ID/IQ does have a guaranteed minimum quantity in the contract.
• Funds are obligated by each task or delivery order, not by the contract itself.

County, City, or Local Trade Organization

• As a response to an emergency can involve varying levels of government, many state, county, and city governments have already established listings of vendors in varying trades that can be utilized.
• In several areas, vendors have committed personnel and equipment to mobilize for emergency response when required.
• Several trade organizations have also formulated listings of their members that have committed their resources to emergency responses.  These include heavy construction contractors (earth moving, etc), electricians, and landscape contractors (tree removal, etc.).
• Many government offices or trade organizations list these vendors in annual publications for reference when needed.

Other Federal Resources

GSA

• GSA Advantage Disaster Relief: GSA has established a website to identify those products and services that are traditionally utilized in relief efforts.  As the products are available through GSA Advantage and GSA Federal Supply Schedule (FSS) contracts, products and pricing are easily obtained.  http://www.gsaadvantage.gov/disasterrelief
• GSA Advantage: While using the purchase card, required supplies can be purchased and received in a short period of time.  A cardholder can locate required items using the search feature on the site, or utilize tailored sections of the site that categorize the products into areas such as Homeland Security Products or Wild Fire and Equipment.  https://www.gsaadvantage.gov
• GSA e-Buy: If a requirement is needed quickly, yet time limitations allow for some market research, e-Buy allows for the distribution of an opportunity to FSS vendors and submission of the resulting vendor quote for the need electronically.
• GSA FSS or GSA BPA: There are several FSS contracts and Blanket Purchase Agreements (BPA) established by GSA or other agencies for various goods or services.  GSA has the goods and services organized by type, and provide them in the GSA Schedule e-Library at http://www.gsaelibrary.gsa.gov/ElibMain/ElibHome.

Department of Homeland Security (DHS) or Federal Emergency Management Agency (FEMA): DHS has established several contracts and agreements for supplies and services to be utilized during an emergency response.  Information regarding the ability to utilize these tools or to learn of avenues available can be obtained by calling DHS at (202) 205-5045.

FEMA Source Lists: FEMA has formulated several lists of vendors of varying trades that may be utilized in relief efforts.  The lists and contact information can be obtained by calling (202) 646-4686.

Defense Logistics Agency (DLA): DLA contracts for various supplies and services that can be utilized by the FAA.  These include contracts for heavy equipment and buildings.  www.dla.mil

Air Force Contract Augmentation Program (AFCAP): This program provides various civil engineer and service capabilities to include structural fire protection, environmental management, and lodging.  http://www.afcesa.af.mil/cex/cexx/cex_afcap.asp

Navy’s Construction Capability (CONCAP) contract: Provides rapid response capability in emergency operations and is focused on construction and construction-related activities.  Tasks include airfield construction, pier construction, and petroleum storage. https://portal.navfac.navy.mil/portal/page?_pageid=181,1&_dad=portal&_schema=PORTAL

Army’s Logistics Civil Augmentation Program (LOGCAP): Provides rapid response in areas to include construction support, general logistics services, and facility engineer support.  http://www.amc.army.mil/amc/ci/pubs/p700_30.pdf

Emergency Procurement Flexibilities

• Mandatory Sources: An emergency may exempt procurements from complying with the Javits-Wagner-O’Day (JWOD) Act, Randolph Sheppard Act, and the Federal Prison Industries requirements. (AMS Procurement Guidance T3.8.4)
• Single Source Procurement: In an emergency, procurements can be awarded to a single source if in the best interest of the FAA. (AMS Procurement Guidance T3.2.2.4)
• Public Announcement: The requirement to synopsize or publicly announce procurements over $100,000 is waived for emergency actions. (AMS Procurement Guidance T3.2.2)
• Walsh-Healey Public Contracts Act: Contracts for supplies under emergency conditions are waived from this act. (AMS Procurement Guidance T3.6.2)
• Purchase Card: See section Purchase Cards.
• Credit Card Checks: See section Purchase Cards.
• Letter contracts: If the situation demands immediate response, a CO may issue a letter contract to a vendor.  A letter contract includes identification of the requirement and a brief description of the work, a total amount for which the contractor shall be limited to expend and the FAA shall be required to pay; and the period of performance by the contractor. (AMS Procurement Guidance T3.2.4)
• Verbal Authorization: A CO may give a vendor a verbal authorization to begin work once funds are committed and complete the remaining contract phases after the fact. (AMS Policy 3.2.2.4.1.1)
• Oral Solicitations and Quotations: Oral solicitations may be used when processing a written solicitation would delay the acquisition of supplies or services in an emergency to the detriment of the FAA.  Oral quotations may be authorized to allow for quicker receipt of pricing for goods and services.  Documentation for each oral Request for Quote (RFQ) should include:
  • Description of requirement and RFQ number;
  • Rationale for use of oral quotations;
  • Sources solicited: Include date, time, and name of individuals contacted, and prices offered; and
  • Best value determination.
• Central Contractor Registration (CCR): Contractors do not have to be registered in CCR before award of a contract, agreement, or lease in response to an emergency or disaster. (AMS Procurement Guidance T3.3.1)
• Electronic Fund Transfer (EFT): Payment by EFT is not required during emergencies or contingency operations. (AMS Procurement Guidance T3.3.1)
• Local Area Set-Asides for Disaster or Emergency: The CO may set-aside procurements for competition among only offerors residing or doing business primarily in an area where the President has declared a major disaster or emergency. (AMS Procurement Guidance T3.2.1.5)
• Bonds: For emergency acquisitions, the CO may waive the requirement to obtain a guarantee when performance bond and/or payment bonds are usually required. (AMS Procurement Guidance T3.4.1)
• Legal Coordination: At Headquarters, the Assistant Chief Counsel for Procurement, and at Regions and Centers, the Region or Center Counsel, may make written exceptions to the Coordination Policy described in T1.15, adjust dollar minimums, or in appropriate cases, waive the Coordination Policy. (AMS Procurement Guidance T1.15)
• Overtime: Approval of contractor overtime should be prospective, but if justified by emergency circumstances, approval may be retroactive. (AMS Procurement Guidance T3.6.2)

T3.2.2 - Source Selection (Revision 17, January 2009) _{Revised 1/2009}    

The Source Selection Guide can be found at D: Appendix, 1: Source Selection Guide.

All procurements over $100,000 must be publicly announced on the Internet or through other means. If the Internet is used, as a minimum the announcement should be placed on the Contracting Opportunities page contained in the FAST. This requirement does not apply to emergency actions, purchases from an established QVL or FSS, exercise of options, or changes. For actions under $100,000, a public announcement is optional.

Publicizing the names of offerors competing for FAA contracts can be a method of encouraging small businesses to seek subcontracting opportunities with potential FAA contractors. When appropriate, the Contracting Officer (CO) may publicly announce names and addresses of offerors responding to a screening information request. Also, the CO, after making a down select decision, may announce names and addresses of offerors remaining in the competition leading to award provided the SIR includes a notice to the offerors and no offeror objects to the release of this information.

a.   General.   Past performance can be one indicator of a prospective contractor’s future performance.   To help ensure that the best performing contractors are providing products and services to FAA, past performance should be evaluated during source selection whenever appropriate. 

b.   Instructions for Using Past Performance in a Screening Information Request (SIR).

(1) General Considerations.   Factors chosen for evaluation should reasonable, logical, coherent, and directly related to requirements in the statement of work (SOW).   Key to successful use of past performance in the screening process is a clear relationship between the SOW, instructions to offerors, and evaluation criteria. Past performance information that is not important to the current acquisition should not be included.  For instance, there would be no point in considering poor subcontract management if there were no subcontract management needed on the contract. Alternatively, if there were a significant amount of software development, it would be important to know the offeror's record with estimating lines of code, providing software builds on time with few errors, and accomplishing the effort within the estimated cost.

(2)  Responsibility Determination. When appropriate, the SIR should state that past performance would be used to evaluate the responsibility of the contractor, and as an evaluation factor. A contractor with a record of unsatisfactory past performance should be screened out of the selection process as part of the responsibility determination. If a contractor's past performance record passes the responsibility determination, then the past record should be compared to the other responsible offerors to determine the offeror that provides the best value to the Government.

(3)  Past performance as a Separate Non-Cost/Price Factor.   It is best to include past performance as a stand-alone factor, as opposed to integrating it with other non-cost/price factors. Making it distinct and identifiable will reduce the chances of its impact being lost within other factors and should make evaluation easier. The relative importance of past performance compared to price or cost and any other evaluation factors is left to the broad discretion of the procurement team (CO, legal counsel, program official and other supporting staff) as is the source and type of past performance information to be included in the evaluation.

(4)  How to Weigh Past Performance. Past performance should be ranked to ensure that it is meaningfully considered. To be meaningful in the screening process (and to ensure that offerors are aware that actual contract performance will be a significant factor in future awards),   past performance normally should be at least equal in significance to any other non-cost evaluation factor. Generally, if a numeric weighting system is used, past performance should be rated at 25 percent or more. For example, if there were five non-cost evaluation factors including past performance, then any of the following examples of weightings or relative importance would suffice:

• Past performance at 25 percent with the other four factors rated at 18.75 percent each (75/4=18.75)
• Past performance at 25 percent, technical excellence at 25 percent, management at 20 percent, the other two factors at 15 percent each
• All five factors rated at 20 percent
• Technical approach rated at 30 percent, past performance rated at 30 percent (to equal the highest rated other non-cost factor), management at 20 percent and the other two factors rated at 10 percent each
• Technical capability and past performance are considered equal in importance followed by test and evaluation, logistics management, and subcontract management in descending order of importance

(5)   Non-Relevant Contract Experience/New Contractors.   The SIR should state whether new contractors, or contractors with non-relevant contract experience will be considered, or rated negatively. For example, if the offeror has a performance history on non-relevant contracts, i.e., prior Government or commercial performance record, but not specifically on the type of work solicited, this information might be used to demonstrate management potential. New contractors may have key management or technical or scientific personnel proposed for the contract that have some relevant experience. An evaluation of the performance of the proposed key personnel on relevant contracts can be used, as appropriate, as part or all of the past performance evaluation. In addition, teaming relationships and subcontractors can enhance the capability of potential offerors to perform, depending on the relationships that exist within the teaming process.

(6)   Time-frame, Size, Scope, Complexity. The SIR should ask the contractor for references for ongoing or contracts completed within a specified period of time. A period of three to five years is considered reasonable, depending on the particular circumstances. For small dollar contracts where there are many actions and contractors that provide the products or services, a shorter period may by appropriate. Offerors may attempt to "cherry pick" references to provide selected information on past history. To minimize this, the procurement  team should attempt to gather past performance history from sources other than those provided by the offeror. Such sources might include the National Institutes of Health (NIH) Contractor Performance System (CPS) database for on-going efforts, other agency contracting personnel, and listings of contract awards posted on the FAA Contract Opportunities. All on-going or completed contracts performed during the identified period, or the last "X" contracts performed by the entity within the identified period should be sought. Instructions to offerors should ask only for a list of the previous contracts and contact points and for a description of any quality awards earned by the offeror. It is not necessary to burden the process by asking that the offeror prepare a description of its past performance history in the proposal. The procurement team should request references for contracts that are similar in size, scope and complexity to the statement of work in the SIR. Each of these terms should be defined in the SIR to alert the offeror to the type of data that is required.

(7) Discriminators/Sub-factors.

(a) Attention should be paid to what discriminates a "good" performer from a "poor" performer for the type of work that will be performed on the specific acquisition. Past performance sub-factors should be shaped by those discriminators, be limited in number, and should be tailored to the key performance criteria in the SOW. For certain prime contracts, the ability to manage subcontracts, or software development capability may be important discriminators. The following are some other examples of sub-factors that may be used to evaluate past performance:   quality, timeliness, cost control, business practices, customer satisfaction, key personnel, and/or quality awards and recognition.

(b) The sub-factors in the SIR should reflect the questions to be used in interviewing references or reviewing any written evaluations provided by the references. For example, sub-factors with corresponding questions under business practices could include:

• Management Responsiveness - Is the offeror cooperative, business-like and concerned with the interests of the customer?
• Contract Change Proposals - What is the contractor's history on contract change proposals? This includes, changes that lower the overall cost or improve performance - timely and accurate proposals for equitable adjustments - changes that have been withdrawn or dismissed as invalid.

(8)  Relative Importance.  The SIR should state whether all sub-factors are relatively equal, or whether certain sub-factors are more important than others. For example, on a contract where most of the work is done for end users and it is difficult for the contract administration team to observe the contractor's performance in a cost-effective manner, significant weight might be placed on customer (end user) satisfaction ratings from the references.

(9)  Major Subcontractors.  If major subcontractors are likely to perform critical aspects of the contract, the   procurement team should evaluate past performance of these subcontractors to determine the overall likelihood of success of the prime contractor. The SIR should state how such information will be evaluated.

(10)  Affiliates, Divisions, etc.  For large organizations with many divisions, consider the past performance of the affiliate, division, etc., that will perform the actual work. In making such decisions, , the procurement team must consider the degree of control that a parent organization will exert over the affiliate. If a parent organization has an excellent or poor performance record and the affiliate is going to be closely controlled and managed by the parent, then the procurement team should consider the parent organization's performance record in making the performance evaluation.

(11)  Number of References.  It is important to ask for at least two references for each contract (program/technical and contracts) to assure that all aspects of the offeror's performance will be discussed. The name of the organization providing the report should be released to the offeror; however, the names of individuals should generally not be released without the individual’s consent.

(12)  Use of Other Sources.  The instruction to the offerors should include a statement that the Government may use past performance information obtained from other than the sources identified by the offeror, and that the information obtained may be used for both the responsibility determination and the best value decision. For each non-Federal reference, the SIR should include an authorization to release information.

(13)  Inclusion of Survey Form.  The survey form need not be included as an attachment in the SIR. However, if the procurement team elects to release the questionnaire, the SIR should note that the questions to be asked would not be limited to those on the questionnaire.

(14)  Sample SIR Provisions.  Appendix 1 contains examples of SIR provisions and an example client authorization letter. The example is not the only way to include past performance in the SIR. Each SIR must contain instructions and evaluation information that best reflects the individual acquisition.

c.   Evaluating Past Performance.

(1)  Applicability.  Past performance is one measurement of an offeror’s ability to perform.

(2) Relation to SIR.  Instances of performance, both good and poor, should be noted and related to the SIR requirements. If problems were identified on a prior contract, the role the sponsor may have played in that result should be taken into account. Evaluations should consider the number and severity of problems, the demonstrated effectiveness of corrective actions taken (not just planned or promised), and the overall work record.

(3) Disclosure of Negative Information.   If the procurement team receives negative information that will have a significant impact on the likelihood of award to an offeror, then the procurement team should disclose the information and provide an opportunity to respond. This is true even if the SIR states that award may be made on initial offers. The SIR should include the appropriate provisions notifying the offerors that FAA retains this option.

(4)  Current Versus Older Performance.   The age of the performance being evaluated may be weighted so that performance on older contracts receives less weight than performance on more recent contracts. More weight may be given to those evaluations on prior FAA or Federal contracts as opposed to contracts with state/local governments or private parties or to prior contracts of a similar nature to the SIR.

(5)  Method of Scoring.  The final past performance rating may be reflected by a color, a number, adjectival, or a combination of these methods, depending upon what system is being used overall to indicate the relative ranking of the offerors. A past performance rating is not a precise mechanical or scientific process and must include sound business judgment. Therefore, the documentation of the final rating should include a logical description of the underlying reasons for the conclusions reached.

(6) Evaluating Disputed/Negative Information.  When the procurement team receives negative information, or information that is disputed, they should carefully consider the offeror’s response and determine what weight to apply, based on the facts obtained from the questionnaire, interview, or other sources. The file should be documented to explain why the procurement team assigned a particular rating. This is especially important in situations involving unresolved disputes.

d.    Obtaining Information on an Offeror’s Past Performance.

(1) Applicability.   There are various methods of obtaining information on a contractor’s past performance.

(2) Reference Checks.   The most commonly used method of obtaining past performance is to conduct reference checks from a variety of sources, including previous FAA program and contracting personnel, other Federal agencies, state and local governments, and commercial contractors.

(3) Other Sources.   Dun & Bradstreet can obtain information on past performance on specific contractors for the FAA ( Dun & Bradstreet charges for this information). In lieu of FAA paying for the report, the SIR may require offerors to provide a copy of a recent past performance report prepared by Dun & Bradstreet. In this case, the offerors would see the report and have an opportunity to resolve any disputed data before the report is submitted to FAA. Using this process could save time and money, but should not be relied on as the only source of data. Quality certifications and awards can also serve as a useful source of past performance information.

(4)  Timetable.   The process of collecting information should begin as soon as the proposal evaluation begins.  Collecting information can be time consuming.  Researchers must locate and question sources of information, either in person, by telephone or in writing. Obtaining this information as early as possible in the evaluation process gives the procurement team invaluable information in determining the viability of the individual offerors. If the information shows a history of poor performance, the procurement team can eliminate the proposal from the competition as non-responsible. It may be best to establish a team devoted entirely to this task during the screening, especially if FAA anticipates receiving a large number of proposals.

(5) Questionnaire or Survey Form.   The first step in obtaining information from sources is to develop a questionnaire, or survey form, that reflects the evaluation rating system that will be used to assess the offerors strengths and weaknesses for the contract being considered. Questions should be worded so that interviewees understand precisely what they are being asked to describe. To maintain accurate records and facilitate verification, the questionnaire (survey) record form should include:   Interviewer’s name, company name, reference’s name (to be held in confidence), full mailing address and telephone number, date and time of the call, and description of the contract effort discussed. Examples of questionnaires suitable for a contract requiring system development and production are provided in Appendix 4. A sample Business Management Past Performance Questionnaire is included in Appendix 3A.

(6)  Information Collection.   Once the questionnaire is prepared, the procurement team should contact references. For all interviews, the questions should be stated to the interviewees exactly as on the questionnaire. There are various ways to collect the information: Face-to-face interviews, mailing the questionnaires, telephone interviewse, electronic mail (ensuring security measures are taken), or some combination of these.

(7)  Number of references.   At least two references should be contacted on each previous contract effort. This should be specified in the instruction to offerors. Additional references may often be identified during the interviews. It is also important to survey reasonably large numbers of references in order to look for patterns in their description of performance - individual ratings may be personal and biased. Numerous ratings can show patterns and are therefore much more likely to be a valid indicator.

(8)  Setting Up Interviews.   Being well organized and efficient is important when conducting the interview so as not to waste the interviewee's time. It is helpful to call the reference to make an appointment to conduct an interview, rather than telephoning the references unannounced, thereby catching them unprepared or with little time to respond. If possible, the questionnaire should be mailed or faxed to the reference in advance of the appointment. Interviewers should take copious notes on the questionnaire to ensure that all information is captured. Tape recording is a good means for capturing all of the conversation, however, tape recording the conversation may cause the interviewee discomfort and reduce the amount of information provided. If tape recording is used during the interview, ensure the interviewee is aware of and agrees to the use of recording devices.

(9) Conducting Interviews.   Evaluators should look for patterns of either favorable or unfavorable overall performance, rather than focusing on individual successes or failures. It is important to look for actions that demonstrate high performance and not just unfavorable performance. This will help to get away from the old responsibility determination mode of just looking at performance problems. There appears to be a tendency for references to give an upward bias to ratings. The interviewer should ask enough questions to discriminate between "good" and "excellent." Evaluators should request any existing documentation in support of excellent or negative findings (i.e., correspondence, modifications, determinations, etc.). Investigating negative findings in-depth prior to presenting them to offerors, in discussions if held, will alleviate unnecessary delays. Prior to concluding the interview, the evaluator should ask the reference for a summary opinion, e.g., how would the interviewee rate the contractor's overall performance and would the interviewee like to do business with the contractor again?

(10) Concluding Telephone and Face-to-Face Interviews.   Immediately following a telephone or face-to-face interview, the interviewer should prepare a narrative summary of the conversation (this can be the questionnaire as filled in by the interviewer) and send it to the reference for verification, preferably by certified mail return-receipt requested, fax, or electronic mail. The narrative should state explicitly that if the reference does not object to its content within the time specified, it would be accepted as correct. If the reference indicates that the narrative is incorrect, then a corrected narrative should be sent for verification. If a reference will not agree to the record and satisfactory corrections cannot be agreed upon, the record cannot be relied upon and should not be included in the offeror's rating. Another source may provide the same information, however.

(11)  Mailing Questionnaires.   If mailing questionnaires is the chosen method for collecting past performance information, mail the questionnaires to the references, provide a time-frame for return of responses, and wait for the responses. If mailed questionnaires are not received in a timely manner, follow-up telephone interviews are suggested (following guidance above if telephone interview occurs).

e.    Past Performance Data Base for Ongoing Efforts.

(1)  NIH Contractor Performance System (CPS).   Headquarters Procurement Information and Services Team (AJA-432) is FAA's liaison to National Institute of Health’s CPS. The CPS contains performance information on current and previous federal contractors. In general, evaluations should be completed for complex procurements and any procurements identified by the procurement team. These records are for the use of procurement team in screening offerors and assessing the probability of success based upon the offeror’s past record as an FAA contractor. Upon request, FAA may also supply past performance information to personnel of other government agencies that are evaluating offerors who have performed on FAA contracts (see Release of Information).

(2) Sample Contractor Performance Report.   Appendix 3B is a sample Contractor Past Performance Questionnaire. The description of the sub-factor may also be helpful in preparing questionnaires for verifying source selection information. This form is not intended to represent the only method for evaluating a contractor’s performance on an FAA contract. Procurement teams that believe other mechanisms would permit more cost-effective evaluation of contractor performance are encouraged to pursue them.

(3)   Creation and Disposition of Records.   Evaluations should be prepared at the completion of contract performance and annually by the anniversary date of the contract, and, if appropriate, after a significant event on a contract or a change in program management or CO. Evaluations should generally be prepared by theprocurement team. The evaluations should be shared with the contractor, and the contractor should be permitted to provide written comments. Procurement teams should review and resolve contractor’s comments, if requested, by the contractor. Copies of the evaluation, the contractor's response, and review comments, if any, should be marked as "source selection information" and retained the contract file. A summary of evaluation information should be entered into the CPS for future reference. As use of the CPS becomes common throughout  FAA, SIRs will need only to ask offerors to provide a list, in the proposal, of past contracts that they have performed that were similar to the potential contract. The need for a section in the proposal on the offeror's past performance may not be necessary. Evaluation files from CPS Government references will provide much, if not all, of the information necessary to evaluate the offeror on past performance.  The need for procurement team to conduct extensive interviews with the contract administrators, or conduct other investigations to verify a offeror's past performance should be greatly reduced. Because the contractor will have been offered the opportunity to comment on the ratings, as they were prepared, further comment in the proposal or during discussions, if held, will usually not be necessary.

f.    Completion of the Performance Evaluation.

(1)  Responsibility.   The development of the performance evaluation is the responsibility of the procurement team. Where the contract provides products or services to end users (persons outside the requiring technical organization), the contract’s administrator is responsible for conducting surveys of these customers and including a summary of the end user ratings in the performance evaluation. This is referred to as the Report Card System on past performance.

(2) When to Perform Surveys.   End user surveys would apply to computer services contracts, major systems maintenance contracts where work is done in the field, routine services contracts such as janitorial or food service, as well as contracts where products are delivered directly to various sites or where performance cannot be measured until the product is used. Evaluations are required at the time the work under the contract is completed, or work is terminated for convenience or default, or when a decision is made by the procurement team not to extend the terms of the contract based upon performance issues. Performance evaluations should be conducted during the contract period of performance in order to provide useful feedback to contractors on their performance and to provide them the opportunity to correct problems before contract completion. The contract file should reflect efforts on the part of the government to provide the contractor with the results of these evaluations. An honest discussion of any contractor problem areas is important to the government which is seeking quality service and equally, if not more so, to the contractor.

g.    Rating Areas.

(1)  The sample Contractor Past Performance questionnaire in Appendix 3B may be used by the procurement team for evaluating contractors performing on FAA contracts. The description of the sub-factors may also be helpful in developing questionnaires to evaluate past performance during the source selection process. The following areas are some examples of areas to be rated for past performance:  Quality, timeliness, cost control, business practices, customer satisfaction, key personnel, and awards and recognition.

(2)  As pointed out earlier, these are the basic indicators of past performance, but other factors such as management of subcontractors or software development capability may be important discriminators for certain contracts.

(3) Quality, Timeliness, and Cost Control.  Three of the areas, quality, timeliness and cost control, can be rated objectively by members of the procurement team. The ratings should reflect how well the contractor complied with the specific contract performance standards for each area. How well the contractor holds up its end of the bargain can, and should, be an essential consideration for future business consideration. The comments should be concise, but provide answers to questions about the performance that would be asked by an evaluator. Here are a few examples:

• The contractor-provided software met all contract performance requirements for ease of use and output. The financial system package actually exceeded expectations in its speed and accuracy.
• The contractor met all contract milestones for development and field installation of the systems. Some internal contractor management milestones were missed, but timely identification of problems and corrective actions kept the program on schedule.
• The contractor's cost management was excellent and resulted in a 2 percent under-run from target cost.

(4)  Business Practices. Business practices should be evaluated to measure the contractor's customer relations efforts as well as how well the contractor worked with the CO and technical representative(s). It is important to note that when dealing with FAA, there is more than one customer. Accordingly, this rating area evaluates the business practices between the contractor and the contract administration team. This rating should be developed by theprocurement team. Questions to ask might be as follows:

• How cooperative was the contractor in working with the government to solve problems?
• Were contractor-recommended solutions effective?
• Was the contractor responsive to the administrative issues of the contract?
• Did the contractor exhibit a propensity to submit unnecessary contract change proposals with cost or price increases?

(5) Customer Satisfaction. Customer satisfaction measures the interface with the ultimate end user of the product or service, e.g., the personal computer user who needs assistance under a computer services contract, or the person who uses a supply item to complete their work. A contract cannot be considered a success unless the end user is satisfied. After all, support of the end user is the reason for every contract. Accordingly, effort should be made to ascertain whether each customer was satisfied, for satisfaction by one does not necessarily mean satisfaction by all. The best way to measure contractor performance at the end-user level is the customer satisfaction survey. The quality assurance plan prepared to administer a contract should contain the procedures for receiving customer feedback on contractor performance. This can be done through telephone calls by the Contracting Officer Technical Representative (COTR), use of written survey forms; complaint boxes in strategic locations, or other means of measuring end user satisfaction. If it is not cost effective to survey all end users, then a random sample should be selected for the survey. If the procurement team does not have resources, they may be conducted through contracted services. End-users may be unfamiliar with the contract requirements and may hold contractors to an unrealistic standard. The CO should evaluate the end users comments to determine if the contractor reasonably tried to meet their demands within the contract requirements. If the contractor met or exceeded contract requirements in an attempt to please the end users, this should be noted on the evaluation form, even if the end users were not totally satisfied with the service. In this case, it may well be that the service for which FAA has contracted is not the service desired or needed by the customer. An evaluation of the contract requirements should be undertaken with input from the end users. However, procurement teams are reminded that FAA does not have any right to require, explicitly or implicitly, or expect benefits not agreed to in the contract. It does mean, however, that "service with a smile" is more than a slogan. A proven rating system for end user satisfaction measures the percentage of end users that rate the product or service satisfactory or better. It should be recognized that no product or service could satisfy everyone. Therefore, an excellent rating may be 95 percent of end users were satisfied with the service. 

(6)  Key Personnel.  Identifying how long key personnel stayed on the contract and how well they managed their portion of the contract can be of great benefit to source selection officials. This information is critical when a newly formed company is bidding on a contract and its past performance history is based on the past performance of the key personnel. Key personnel past performance looks at the track record of the principal individuals selected to manage and perform other key aspects of the work on the contract. When firms in the commercial world make decisions about which contractor, consultant, or firm to deal with, they place heavy emphasis on (1) the past performance of the company as a whole and (2) how well the firm's employees have performed. Often, a company will choose to work with the same contractor based solely on the past performance of its employees. Similarly, the past performance of the key management personnel to be assigned to a contract should be looked at, as an indicator of how well the contract will be performed. For new companies entering the marketplace, without relevant company experience, it will be the quality of the past performance of their key management personnel that will indicate the risk of good performance and become the basis of the past performance evaluation.

(7)   Quality Awards and Certifications. The private sector is increasingly establishing partnerships with suppliers and customers to ensure continuous improvement in the quality of the end products and services. High quality suppliers may be recognized by different awards and certifications, such as the Deming Quality Award, Baldrige Award, President's Quality Award, agency-specific awards, or  International Standards Organization (ISO )certification.   In seeking past performance information,  procurement teams may ask offerors about any quality certifications or awards. How quality certifications are evaluated is at the discretion of the   procurement team. A sample evaluation plan for evaluating this sub-factor is provided below.

Note: This is for illustrative purposes only and is not intended to indicate a preferred rating system:

• Excellent (10 percent of total rating or 40 percent of past performance rating): Receipt of a world-class quality award or certification (e.g., Malcolm Baldridge Quality Award) covering the entire organization proposing on the project. The award or certification has been received or renewed within the last three years, or the proposal presents convincing evidence that it still applies.
• Good (6 percent of total rating or 24 percent of past performance rating: Receipt of a widely respected quality award or certification (e.g., the automobile industry's QS 9000, Sematech's SSQA, or ANSI/EIA-559).
• Adequate (2 percent of total rating or 8 percent of past performance rating): Receipt of a quality award or certification with a weak relation to future quality (e.g., ISO 9002 registration).

h.    Contractor Response and Review.

(1)  While the ultimate conclusion on the performance evaluation is a decision of the procurement team, the contractor should be permitted to comment on the evaluation. Upon completion of any evaluation by the   procurement team and submission to the CPS, registered contractors will receive an electronic notice. Contractors must be CPS registered prior to receiving electronic evaluations. The contractor should be given a reasonable time to respond to the report. The required turnaround time for contractor response may not be less than thirty days. If the contractor fails to provide a response by the established deadline, the procurement team’s comments can stand alone.

(2)  If the contractor submits a rebuttal statement for any or all of the ratings and an agreement on the ratings cannot be reached by the contractor and the CO, the disagreement should be resolved by the entire procurement team. The procurement team's decision resulting from the review must be in writing and done in a timely manner. The contractor's statement and  procurement team's review must be attached to the performance evaluation report and must be provided to other parties requesting a reference check.

(3) The completed evaluations are to be filed in the contract file and the CPS. The evaluations will be retained in the CPS for not more than three years after completion of contract performance.        

(4)  When another agency asks for a reference, the responsible CO should provide all evaluations, extracted from the database, for the period desired by the requesting organization.

i.    Release of Information. Contractor evaluations should be used by FAA and other agencies to support future award decisions.  Solicitations for requirements expected to result in an FAA past performance evaluation should require the contractor to identify the FAA resultant contract on any Government contract solicitation that requests past performance information, that is issued during performance or up to three years after performance, and is for similar items/services.  The completed evaluation must be released to other FAA evaluators, other Government personnel authorized to receive such reports, and the contractor whose performance is being evaluated only.  Improper disclosure of such information could harm both the commercial interest of the FAA, and to the competitive position of the contractor being evaluated, as well as, impede the efficiency of FAA operations.

The CO, with the concurrence of the IPT/PT, may cancel a SIR at any time during the solicitation process. Notification of the cancellation by the CO may be made using the same mechanism as the initial or subsequent SIRs. The CO will document the cancellation for placement into the official contract file.

a. Requirements for Accessibility.

Section 508 of the Rehabilitation Act of 1973 (29 U.S.C. 794d) requires that persons with disabilities that are either Federal employees or members of the public seeking information or services from a Federal department are to have the access to and use of information and data comparable to the access and use of the information and data by Federal employees or members of the public who do not have disabilities. Section 508 applies to contract awards, task orders, delivery orders, orders under Government-wide Schedules and Interagency Agreements for electronic and information technology (EIT), as defined below.  The procurement team (CO, program official, legal counsel, and other supporting staff) will insert Section 508 requirements into SIRs that include development, procurement, maintenance, or use of electronic and information technology unless an exception applies (see Exceptions to Section 508 below).

b. Definition.

Electronic and information technology (EIT) means any equipment or interconnected system or subsystem of equipment used in automatic acquisition, storage, manipulation, management, movement, control, display, switching, interchange, transmission, or reception of data or information. For purposes of the preceding sentence, equipment is used by the FAA:

(1) If the equipment is used directly by FAA; or

(2) Is used by a contractor under a contract with FAA that:

(a) Requires use of such equipment; or

(b) Requires use, to a significant extent, of such equipment in performance of a service or furnishing of a product.

c. EIT Products.  EIT includes, but is not limited to:

(1) Computers and other office equipment;

(2) Software and firmware;

(3) Services (including support services);

(4) Telecommunication products;

(5) Information kiosks;

(6) Office equipment such as copiers and fax machines; and

(7) Websites.

d. Exceptions to Section 508.

(1) Section 508 does not apply to EIT:

(a) Acquired by a contractor incidental to a FAA contract;

(b) For a national security system;

(c) Located in space frequented only by service personnel for maintenance, repair, or occasional monitoring of equipment;

(d) That would impose an undue burden on FAA (see paragraph g. below); or

(e) That would impose a fundamental alteration in the nature of an EIT product or its components.

(2) EIT is not available:

(a) When procuring commercial items, FAA must comply with those EIT standards that can met with supplies or services that are available in the commercial marketplace in time to meet FAA's delivery requirements.

(b) When EIT is not available, the contract file must be documented as outlined below.

(3) Documentation supporting a Section 508 exception must be maintained in the contract file.  The FAA Section 508 Procurement Checklist found in below in C. "Forms"  can aid in regulatory compliance. Required documentation includes (if applicable):

(a) Applicable technical provisions of the Access Board's standards;

(b) Market research performed to locate items that meet the applicable technical provisions;

(c) The specific provisions that cannot be met;

(d) Undue burden documentation (see paragraph g. below); and

(e) Other applicable documentation.

(4) If an exception applies preventing FAA from meeting all of the applicable technical provisions, FAA may acquire EIT that meets some of those provisions.

e. Applicability.

(1) All EIT procured on or after June 21, 2001 must comply with Section 508 standards.

(2) The FAA does not have to retrofit EIT procured before June 21, 2001.

f. Approval of Undue Burden.

When applying the requirements of Section 508 (see paragraph b. "Requirements for Accessibility" above) would impose an undue burden, FAA must provide individuals with disabilities covered by Section 508 the information and data involved by an alternative means of access that allows the individual to use the information and data. Undue burden is defined as a significant difficulty or expense to the FAA.

(1) Documentation of an undue burden must include:

(a) A thorough and fully supported explanation as to why and to what extent compliance with each provision of 36 CFR Part 1194 would create an undue burden for the EIT being procured; and

(b) Dollar value, market research performed, and alternative means of access that would be provided for individuals with disabilities to use the information or data.  Alternative means of access include (but not limited to):

(i) Voice, fax, or relay service;

(ii) Qualified sign language interpreters;

(iii) Teletypewriters (TTY);

(iv) Internet posting;

(v) Captioning;

(vi) Text-to-speech synthesis;

(vii) Readers;

(viii) Personal Assistants; or

(ix) Audio description.

(2) Final approval authority of an undue burden determination resides with the FAA Administrator. The Secretary of the Department of Transportation (DOT) formed the Undue Burden Advisory Board (UBAB), which will advise FAA on undue burden matters.  The process for undue burden determinations is:

(a) Review by DOT Chief Information Officer;

(b) Review by DOT General Counsel;

(c) Review by UBAB and their submission of a recommendation to the FAA Administrator in the form of an "Undue Burden Report"; and

(d) Consideration of the report by the FAA Administrator or delegate.  The resulting decision is final.

g. Sources of Further Information.

(1) U.S. Architectural and Transportation Barriers Compliance Board (U.S. Access Board):
http://www.access-board.gov

(2) Government-wide Section 508 website:
http://www.section508.gov

(3) FAA Section 508 website:
https://intranet.faa.gov/faaemployees/org/staffoffices/aio/e_government/section_508/

a. Shipping Spare Parts. For all shipments of spare parts, the contractor should include a packing list that includes at least the noun name, part number, Commercial and Government Entity (CAGE) Code, quantity, unit price, and national stock number (if available). Contracts that require shipment of spare parts should include Clause 3.2.2.3-73 to establish this contractual requirement.

b. Spare Parts for Nationally Furnished Project Materiel.

The responsibilities described below are guidelines to help ensure successful source evaluation and selection. The source selection team managing the procurement must apportion these responsibilities to fit the specific procurement. 

a. Source Selection Official. The service or product team lead or Director (or equivalent position) of the requiring organization is the source selection official (SSO) for procurement under an investment program subject to the Joint Resources Council (JRC) process (unless the JRC otherwise designates an SSO). For procurements not subject to the JRC investment-decision process, the CO is the SSO. The SSO's responsibilities include:

(1) Assure team competence, cohesiveness, and effectivenes;

(2) Assign responsibility to a source evaluation team member to mark all source selective sensitive information with the designation "SOURCE SELECTION SENSITIVE INFORMATION."

(3)  Approve evaluation plans and assure the evaluation conforms to the stated evaluation criteria; and

(4) Make down-select decisions and assume full authority to select the source for award. 

b. Source Evaluation Team. The source evaluation team properly and efficiently performs source evaluation, and supports the source selection decision and related activities. Their responsibilities include:

(1) Draft all SIRs;

(2) Formulate the source evaluation plan;

(3) Review existing lessons learned reports that provide meaningful insight into the procurement;

(4) Ensure an in-depth review and evaluation of each submitted screening document against FAA requirements and stated evaluation criteria;

(5) Prepare the evaluation report (including recommendations, if applicable), using sound business judgment, to assist the SSO make down selection and/or award decisions;

(6) Oversee all procedural and administrative aspects of the procurement;

(7) Select advisors to assist the team in its evaluation, if required;

(8) Prepare documentation for the SSO’s decision rationale, if requested by the SSO;

(9) Participate in all debriefings; and

(10) Prepare a lessons learned memorandum after completing the source selection.

c. Contracting Officer.  The CO's responsibilities include:

(1) Serve as the SSO for procurements not subject to the JRC investment-decision process;

(2) Ensure, when applicable, conflict of interest documentation is obtained from all source selection team members; with legal counsel, determine if any conflicts or apparent conflicts of interests exist; and if so, resolve them;

(3) Ensure source selection team members are briefed on sensitivities of the source selection process, prohibition against unauthorized disclosure of information (including their responsibility to safeguard proposals and any documentation related to the source selection team proceedings), and requirements concerning conflicts of interest; ensure source selection team members provide nondisclosure of information statements;

(4) Coordinate communications with industry and conducts all debriefings;

(5) Control all written documentation issued to industry;

(6) Participate during screening, selection, and debriefing phases of source selection to ensure fair treatment of all offerors;

(7) Issue letters, public announcements, SIRs, SIR amendments, and other procurement documents;

(8) Ensure the contract is signed by a contractor's representative with the authority to bind the contractor; with legal counsel, ensure all contractual documents comply with applicable laws, regulations, and policies;

(9) Execute, administer, and terminate contracts and make related determinations and decisions that are contractually binding.

d. Product or Service Team Lead or Director of the Requiring Organization. The product or service team lead or Director's (or equivalent position) responsibilities include:

(1) Serve as SSO if the procurement is subject to the JRC investment-decision process (unless otherwise designated by the JRC);

(2) Assure FAA’s program needs are acquired through the appropriate source selection process;

(3) Assure SIRs include adequate definition of requirements; and

(4) Assure qualified technical evaluators, if required, assist the source evaluation team in the evaluation.

e. Advisors. The source evaluation team may appoint advisors to provide specialized expertise and guidance not otherwise available on the team.

f. Nongovernmental Evaluators and Advisors. The source evaluation team may use nongovernmental personnel as evaluators or advisors.  Nongovernment personnel must comply with FAA's conflict of interest and nondisclosure of information policies.  The SIR must include notice of any nongovernmental participation.

a. General.  This guidance is designed to assist the Source Selection Official (SSO) in considering process capability of potential suppliers during proposal evaluations, mitigating process-related risk of the supplier during contract/agreement performance, and for fostering process improvement of the supplier throughout the lifecycle.

b. Scope/Applicability.  Supplier Process Capability Evaluation and Appraisal are intended for use in new acquisitions and agreements, but may also be  incorporated into existing contracts or agreements.

c. Expected Benefits.

(1) Acquirer.  The FAA can expect reduced risk in supplier selection and in meeting program objectives by motivating suppliers to improve their processes without forcing compliance to specific practices.  Other benefits would include enhanced quality, predictability, performance and cost effectiveness of products and services acquired.

(2) Supplier.  Suppliers can expect reduced risk in meeting contract requirements by identifying and addressing process deficiencies that might negatively impact project success.  Other benefits would include improved performance by identifying and addressing process deficiencies in critical process areas and potential for earning additional award fee where such incentives are part of the contract.

d. Pre-award.  In the early phase of planning a source selection, the SSO determines whether process capability will be considered as a risk factor for source selection. The following criteria should be considered when making this decision:

(1) The performance of specific processes is considered critical to accomplishment of the mission.

(2) The product or service being acquired is considered crucial to the FAA.

(3) A major component of the product or service to be provided is considered to be unprecedented.

(4) The total estimated value of a contract for research, engineering, and development (R,E&D) is equal to or greater than $70 million, or a contract for acquisition is equal to or greater than $300 million.

(5) There is lack of information on offeror’s past performance or process capability data, or the past performance or process capability of the offeror is weak.

(6) The product or service is especially complex.

If process capability will be used as an evaluation factor, or as an adjustment to risk at either the area or factor level, the SIR must include request for information on current status and commitment to process improvement, including evidence indicating process capability.  The SIR must also identify particular aspects of the suppliers’ performance capabilities that are considered critical to success of the contract, such as architecture and design, safety, security, human factors, integration, risk management, or quality assurance.

Process capability appraisals can be used after award to validate and confirm the offeror’s proposals and/or to identify risks associated with process deficiencies to be addressed during contract performance.  If a decision is made to perform a post-award appraisal, the SIR must indicate that a post-award appraisal will be performed on the selected supplier’s processes that are identified as critical or potentially risky.

e. Post Award.  Post award appraisals may be conducted on existing contracts with well-established project(s), or on new contracts using target projects selected from the supplier’s sponsoring organization in accordance with the FAA-iCMM Appraisal Method (FAM) section 3.5. 

(1) FAA-iCMM Appraisal Method (FAM).  The acquirer determines the scope of the appraisal such as the number of process areas, capability levels, and projects.  The acquirer also ensures that adequate time and resources are available for conducting a post-award appraisal using the FAA-iCMM as the reference model.  An appraisal team lead is identified, who will participate in planning the appraisal, and in appraisal team selection.  The scope and magnitude of the appraisal will be determined based on the analysis by the process capability analysis team of information provided by the offeror, and the decision of the SSO.  A proposed schedule for post-award appraisal will be provided in the SIR.  

(2) Formal Appraisal.  The Government may require formal appraisal of process capability versus the FAA-iCMM, using the FAA-iCMM Appraisal Method (FAM).  This appraisal would be completed 30-60 days after award.   The scope of the appraisal would be those areas identified as critical to acquisition success, as determined during the selection process, and will result in identification of strengths and weaknesses, with any critical deficiencies identified.

f. Contract/Agreement Requirements. Considerations in developing contract/agreement requirements include use of trade-off analysis to establish the level of surveillance of strong or weak areas.  For example, if a supplier is strong in an area, it is inefficient to check on that area in the same way that would be applied in an area found to be weak.  Additional Award fees may also be used as an incentive. Contract/Agreement performance requirements include completion of initiatives to remove critical deficiencies identified.  Completion may be a factor in award fees.   Depending on the decision of the SSO, contract requirements may include:

(1) Risk mitigation plans to remove deficiencies noted during pre-award.

(2) Performing scoped post-award and follow-up appraisal(s).

(3) Risk mitigation plans to remove deficiencies noted in post-award appraisal.

(4) Government “surveillance” for specific areas (weaknesses) to be addressed.

(5) An adequate reporting or insight mechanism to facilitate monitoring the risk mitigation plan.

(6) Consideration for creating additional process strengths.

(7) Improvement in performing process improvement activities.

Risk mitigation planning describes in detail the schedule and actions that will be taken to remove deficiencies noted during the evaluation and selection process and those uncovered in the appraisal process, if a post award appraisal is performed.

g. Additional Resources.   Appendix II contains additional instructions, sample language for the SOW and SIR and other references for supplier process capability evaluation and process improvement appraisals.

a. General.

(1) Tiered evaluation of offers is a process by which FAA promotes small business participation while providing FAA a means to continue the procurement if small business participation is insufficient.

(2) The Contracting Officer (CO) may use tiered evaluation of offers to promote competition in each tier of small business concerns while still allowing other than small business to participate without issuing another SIR.

(3) The CO must consider the tiers of small business concerns prior to evaluating offers from other than small business concerns. 

b. Utilizing Tiered Evaluations.

(1) The CO must specify in the SIR that a tiered evaluation of offers will be used in source selection, and offers from other than small business concerns will only be considered after the determination that an insufficient number of offers from responsible small business concerns were received.

(2) The CO will specify the tiered order of precedence for evaluating offers in the SIR, and determine the applicable tiers based upon market research of the availability of small business concerns.  An example of a tiered order of precedence is (descending in order):

(a) Socially and economically disadvantaged business (SEDB) expressly certified by the Small Business Administration (SBA) for participation in SBA's 8(a) program.

(b) Service-disabled veteran owned small business (SDVOSB);

(c) Very small business;

(d) Small business; and

(e) Other than small business.

(3) Once offers are received, the CO will evaluate a single tier of offers according to the order of precedence specified in the SIR.  If no award can be made at the first tier, the evaluation will proceed to the next lower tier until award can be made.

Click here to access clauses.

See FAST Procurement Toolbox for applicable forms.

1:  Source Selection Guide    
1.1 : Introduction     
a. Purpose: This guide contains information on source selection processes and techniques that may be used through the FAA screening process.  The guide is designed to provide flexibility so that FAA Contracting Officers can best design and execute their Screening Information Request (SIR) and source selection to provide the best value to meet FAA needs. The Acquisition Management System (AMS) prescribes the general policies and procedures governing this guide.

b.  Scope:

(1) This guidance may be applied to competitive, negotiated acquisitions.

(2) Use of the processes described in this guide will depend upon the complexity and dollar value of each acquisition and your available resources. Apply prudent business sense to tailor the processes to fit your circumstances.

c.  Definitions:

•  Best Value – A term used during procurement source selection to describe the solution that is the most advantageous to the FAA, based on the evaluation of price and other factors specified by FAA.
• Communications - Any oral or written communication between the FAA and offerors about the aspects of the procurement, including the offerors’ submittals/proposals.  Communications may start in the planning phase and continue through contract award.
• Exhibit 300 program baseline - The Exhibit 300 program baseline is a formal document approved by the Joint Resources Council at the final investment decision, and in effect, is a contract between the FAA and the service organization.
• Joint Resources Council - The FAA body responsible for making corporate level decisions.
• Market survey - Any method used to survey industry to obtain information and comments and to determine competition, capabilities, and estimate costs.
• Procurement Integrity - Personnel who are involved in a source selection are subject to the requirements of the Procurement Integrity Act (See T3.1.8, Appendix 1). This Act and other similar statutes and regulations impose stringent requirements related to safeguarding of source selection information, contractor bid or proposal information and other integrity issues. Violation of these requirements could result in civil and/or criminal penalties.
• Qualification information - Qualifies vendors and establishes qualified vendor lists (QVLs) for multiple FAA procurements.
• Request for Offer - A request for offer is a request for an offeror to formally commit to provide the products or services required by the acquisition under stated terms and conditions.
• Screening -  The process of evaluating offeror submittals to determine either which offerors/products are qualified to meet a specific type of supply or service requirement, which offerors are most likely to receive award, or which offerors provide the best value to the FAA.
• Screening decision - The narrowing of the number of offerors participating in the source selection process to only those offerors most likely to receive award.
• Screening information request (SIR) - Any request made by the FAA for documentation, information, or offer for the purpose of screening to determine which offeror provides the best value solution for a particular procurement.
• Selection decision - The determination to make an award by the source selection official to the offeror providing the best value to the FAA.
• Service organization - A service organization is any organization that manages investment resources regardless of appropriation to deliver services. It may be a service unit, program office, or directorate.

• Source Selection Official (SSO) – The service or product team lead or Director (or equivalent position) of the requiring organization is the source selection official (SSO) for procurement under an investment program subject to the Joint Resources Council (JRC) process (unless the JRC otherwise designates an SSO). For procurements not subject to the JRC investment-decision process, the Contracting Officer is the SSO.
d. Procurement Integrity: Personnel who are involved in a source selection are subject to the requirements of the Procurement Integrity Act. This Act and other similar statutes and regulations impose stringent requirements related to safeguarding of source selection information, contractor bid or proposal information and other integrity issues. Violation of these requirements could result in civil and/or criminal penalties. Become familiar with the prohibitions and certification requirements of the Act and similar statutes and regulations that may pertain to your specific acquisition. Direct questions and/or issues regarding procurement integrity policy and regulations to the legal counsel assigned to the source selection.  All personnel involved in the source selection process are responsible for maintaining the integrity of the procurement.  See Appendix A for safeguards that you should consider taking to ensure the integrity of your source selection.

1.2 : Getting Started  

a. Conducting Procurement Planning: The FAA coordinates and integrates the efforts of all personnel responsible for a procurement through a comprehensive procurement plan.  The purpose of the plan is to satisfy FAA’s needs in the most effective, economical and timely manner and should address how FAA will manage the procurement.  Procurement planning should start when FAA identifies a need for supplies and/or services.

b. Performing Market Research: Market research is the first step in procurement planning and is essential to designing a procurement strategy and identifying candidate evaluation criteria. It is the process of collecting and analyzing information about capabilities within the market that can satisfy FAA’s needs. Market research is key to determining whether a commercial item can meet FAA’s needs and to identifying associated commercial practices.  Market research will significantly influence the development of the Performance Work Statement, the selection of evaluation factors, contracting and source selection methods, and amount and type of information requested in a SIR.  The extent of market research and the degree to which you should document the results will vary depending on such factors as urgency, estimated dollar value, complexity, and past experience. In some cases, one person will be able to conduct all of the required market research. In other cases, a team effort is appropriate.

c. Examples of Market Research Techniques:
• Use general sources of information available from the market place, Government
sources, and the Internet;
• Contact knowledgeable individuals regarding market capabilities and business
Practices;
• Review the results of recent market research;
• Query Government and/or commercial databases;
• Publish formal requests for information in appropriate technical or scientific
journals or business publications;
• Conduct interchange meetings or hold pre-submittal conferences;
• Participate in interactive, on-line communication; and
• Review catalogs and product literature.

For more information, see T3.2.1.2, Market Research and Analysis.

d. Selecting the Evaluation Methodology: One of the first steps in designing a procurement strategy is to determine the most effective evaluation methodology to use. In many procurements, it is in the FAA’s best interest to consider award to other than the lowest price offeror. Under this process, you evaluate both cost (or price) and non-cost factors and award the contract to the offeror proposing the combination of factors that represents the best value based on the evaluation criteria.  Consider the non-cost strengths and weaknesses, risks, and the cost (or price) offered in each proposal. The source selection official (SSO) will select the successful offeror by applying his/her business judgment to determine the proposal that represents the best value to the FAA.  Low priced, technically acceptable may be best value when the FAA would not realize any value from a proposal exceeding the FAA’s minimum technical requirements. In such a case, you may establish certain standards that a proposal must meet to be considered technically acceptable. The award must then be made to the lowest price, technically acceptable offeror. In such a scenario, a proposal would not receive any additional credit for exceeding the established standards.

e. Establishing the Source Evaluation Team (SET):

• Overview
Source evaluation should be a multi-disciplined team effort. The team should include representatives from appropriate functional areas such as contracting, technical, logistics, legal, program management, and user organizations.  The size and composition of the SET will vary depending upon the requirements of each acquisition.  Whether the team is large or small, it should be structured to ensure teamwork, unity of purpose, and appropriate open communication among the team members throughout the process.

• Key Components of the Team
The service or product team lead or Director (or equivalent position) of the requiring service organization is the source selection official (SSO) for procurement under an investment program subject to the Joint Resources Council (JRC) process (unless the JRC otherwise designates an SSO).  For procurements not subject to the JRC investment-decision process, the CO is the SSO.  In formal source selections, the Contracting Officer (CO) serves as a business advisor to the SSO. The Contracting Officer serves as the focal point for inquiries from industry, controls all exchanges with offerors and executes the contract award. Additionally, legal counsel, small business advisors, and technical experts may also serve as SSO advisors.  If nongovernmental advisors are part of the team, the SIR must include notice of any nongovernmental participation.

• Roles and Responsibilities of the Source Selection Official and Source Evaluation Team
1. Source Selection Official. The SSO shall:
a. Ensure the proper conduct of the source selection process and make the final source selection decision.
b. Ensure that the evaluation plan and evaluation criteria are consistent with the requirements of the SIR and applicable regulations.
c. Concur with the Contracting Officer’s decision to release the solicitation (if the SSO is other than the CO).
d. Establish the SET and approve the evaluation plan.
e. Ensure that personnel with the requisite skills, expertise, and experience to execute the evaluation plan are appointed to the SET.
f. Approve the Contracting Officer's downselect/competitive range determination (if the SSO is other than the CO).
g. Ensure that conflicts of interest, or the appearance thereof, are avoided.
h. Ensure that premature or unauthorized disclosure of source selection information is avoided.
i. Ensure that the source selection process is conducted in accordance with applicable laws and regulations.
j. Select the successful offeror and ensure that supporting rationale is documented in
Source Selection Decision Document before contract award.

2. Source Evaluation Team. The Team will:
a. Conduct a comprehensive review and evaluation of proposals against the SIR(s)
requirement and the approved evaluation criteria.
b. Draft all SIRs.
c.  Select advisors to the team, as necessary.
d. Ensure an in-depth review and evaluation of each SIR.
e. Prepare and submit the team evaluation reports to the SSO.
f. Brief the SSO, as requested.
g. Respond to special instructions from the SSO.
h. Prepare the necessary items for negotiation.
i. Provide information for debriefings of unsuccessful offerors.
j. Prepare a lessons learned memorandum after completing the source selection.

3. Contracting Officer. The Contracting Officer will:
a. Serve as the SSO in most instances (see SSO definition).
b. Act as the business advisor to the SET.
c. Coordinate communications with industry and control written documentation issued to industry.
d.  Participate during screening, selection, and debriefing phases of source selection to ensure fair treatment of all offerors.
e. Issue letters, public announcements, SIRs, SIR amendments and other procurement documents.
f. Chair all required debriefings.

Also see T3.2.2.A.7, Source Selection Team responsibilities

• Administrative Support Considerations
A successful source selection requires careful planning of the administrative requirements needed to support the SSO. Each acquisition will vary in terms of the administrative support requirements; however, the following checklist contains some potential  requirements:

• Adequate facilities (to include space for the evaluators and related meetings and
for discussions with offerors):  Consider whether the facilities are of an adequate
size, capable of segregation of committees, comfortable, properly furnished, secure,
disabled accessible, and close to support services such as copiers, restrooms, and
eating facilities.
• Security controls, such as identification badges and access control
• Secure storage space for proposals and source selection materials
• Appropriate computer hardware and software and related support
• Adequate telephones, facsimile machines, copiers and/or printing services located
in secure areas and Audio/ Video Teleconferencing capabilities that can be secured.
• Adequate office supplies
• Lodging and transportation for personnel on temporary duty (TDY).

1.3 : Evaluation Plan

a. Purpose: The evaluation plan is a required and vital planning document that identifies the goals of the acquisition and describes how to evaluate vendor responses to a SIR and select the winning offeror(s).

b. Format: Use prudent business judgment to tailor the size and detail of your evaluation plan based upon the complexity of the acquisition. At a minimum, it should address:
• SSO and SET members;
• The proposed evaluation factors and subfactors, their relative importance, and associated standards (Section M);
• Any other information related to the source selection.

c. Access to Plan: The plan is source selection information. You shall not disclose source selection information to any person not authorized to receive the information. Normally, only SET members and personnel from the responsible contracting activity with a need to know are authorized access to the plan. The SSO must approve access to anyone outside the SET and the recipient(s) must sign a non-disclosure agreement.  However, the evaluation factors and significant sub-factors and their relative importance will eventually become public knowledge, as they become part of the SIR.

d. Evaluation Plan for Services: Generating the evaluation plan for a services type Source Selection offers some unique challenges to organizations and to the SSO conducting the evaluation.  Normally, Past Performance is a major factor in the evaluation of services.  As with all source selections, organizations should take great care in providing qualified personnel to the SSO, knowledgeable in the types of services being acquired. 

Also see AMS 3.2.2.3.1.2.3, Receipt/Evaluation of Submittals

1.4 : Screening Information Request (SIR)   
 a. Purpose: The FAA obtains offers from vendors through the issuance of a SIR.  The SIR includes information necessary for the offerors to understand what the FAA is buying, what information FAA must provide, and how vendor responses to the SIR will be evaluated.  The success of a procurement is directly linked to the quality of the SIR.  A well-written SIR will:
• facilitate a fair competition,
• limit criteria to discriminators that add value,
• clearly detail information required from vendors
• clearly identify the evaluation and award criteria,
• convey a clear understanding of FAA’s requirements.

b. The SIR Process: For a given procurement, the FAA may make a selection decision after one SIR, or the FAA may have a series of SIRs (with a screening decision after each one) to arrive at the selection decision. This will depend on the types of products and services to be acquired and the specific source selection approach chosen by the service organization.  Generally, when multiple SIRs are contemplated, the initial SIR should request general information, and future SIRs should request successively more specific information.
Initial SIRs need not state firm requirements, thus allowing the FAA to convey its needs to offerors in the form of desired features, or other appropriate means. However, firm requirements ultimately will be established in all contracts.
c. SIR Contents: Each SIR should contain the following information:
• Paper Reduction Act number OMB No. 2120-0595 on the cover page,
• A statement identifying the purpose of the SIR (request for information, request for offer, establishment of a QVL and screening),
• A definition of need,
• A request for specific information (with specific page and time limitations, if applicable),
• A closing date stating when submittals must be received in order to be considered or evaluated,
• Evaluation criteria (and relative importance, if applicable),
• A statement informing offerors how communications with them will be conducted during the screening, and
• An evaluation/procurement schedule (including revisions, as required).

d. Categories of SIRs:

1.  Qualification Information
Qualification information, used to qualify vendors and establish qualified vendor lists (QVLs), should be requested only if it is intended that the resultant QVL will be used for multiple FAA procurements.
Qualification information screens for those vendors that meet the FAA's stated minimum capabilities/requirements to be qualified to provide a given product or service. All vendors that meet the FAA's qualification requirements will be listed on the appropriate QVL for the stated products or services.
Once qualification information is requested, received, and evaluated in accordance with the evaluation plan, a QVL will be established for the given product/service.
See T3.2.2.3.A.4, Complex and Noncommercial Source Selection for more information on QVLs.
2.  Screening Information
Screening information allows the FAA to determine which offeror(s) are most likely to receive the award, and ultimately which offeror(s) will provide the FAA with the best value. The screening information requested in the SIR should focus on information that directly relates to the key discriminators for the procurement.
3.  Request for Offer
A request for offer is a request for an offeror to formally commit to provide the products or services required by the acquisition under stated terms and conditions. The response to the request for offer is a binding offer, which is intended to become a binding contract if/when it is signed by the CO. The request for offer may take the form of a SIR, a proposed contract, or a purchase order.

e. Changes in SIR Requirements: If, after release of a SIR, it is determined that there has been a change in the FAA's requirement(s), all offerors competing at that stage should be advised of the change(s) and afforded an opportunity to update their submittals accordingly.
The SSO has authority to waive a requirement at any time after release of a SIR, without notifying other offerors where the SIR states that offeror specific waiver requests will be considered, and the waiver does not affect a significant requirement that changes the essential character or conditions of the procurement.

f. Common Problems:

• Inconsistency Among the SIR and Related Documents - It is critical that there be alignment between the SIR and related documents. It is particularly important that there be consistency between the evaluation plan and the SIR.

• Inconsistency Within the SIR - Particularly troublesome are inconsistencies between the descriptions of the FAA’s requirements, instructions on how to prepare a proposal, and information related to the evaluation factors and sub-factors. These inconsistencies may be caused by different groups of people developing the different SIR sections without proper coordination.  Such inconsistencies can result in less advantageous offers, necessitate changes to the SIR, cause delays in the acquisition, lead to offerors losing confidence in the process, or result in litigation.

• Requesting Too Much Information from Vendors - The instructions for preparing and submitting proposals are critical to an acquisition. There has to be a link between SIR requirements and objectives, each evaluation factor and subfactor and the SIR preparation instructions. Request only the essential information needed to evaluate SIRs against the evaluation factors and subfactors. Never ask for information you do not intend to evaluate.  Instructions that require voluminous information can cause potential offerors to forego responding to the solicitation in favor of a less costly business opportunity. Furthermore, excessively large proposals may increase the time and costs associated with performing the evaluation. Proposal page limitations are encouraged, but need to be clearly defined and tailored to the needs of the acquisition. Focus exclusively on discriminators. Failure to do so compromises the ability to identify the best proposal.

• Unnecessary Use of Design Requirements - The way you present the FAA’s requirements in the SIR can have a significant impact on a source selection using the tradeoff process. Use of detailed design requirements or overly prescriptive performance work statements severely limits the offerors’ flexibility to propose their best solutions. Instead, you should use functional or performance-based requirements to the maximum extent practicable. While it may be more difficult to develop evaluation criteria and conduct the evaluation process using this approach,
the benefits warrant it. These benefits include increased competition, access to the best commercial technology, better technical solutions, and fewer situations for protests.

g. Ways to Improve the SIR
• A multi-disciplined team should develop the SIR. The members should be stakeholders in the acquisition and should continuously coordinate with each other to ensure consistency of the document.
• Promote understanding of the FAA’s requirements through communications with industry. This can be accomplished through use of various communication forums such as Federal Business Opportunities Page notices, Advance Planning Briefings for Industry, one-on-one meetings or conferences with potential offerors.
• Information technology facilitates distribution of the SIR and associated documents.
• Depending on your requirements, you may find it beneficial to use oral presentations (See 1.10).

1.5 Communications with Offerors
Policy Overview
Communications with all potential offerors should take place throughout the source selection process. During the screening, selection, and debriefing phases of source selection, communications are coordinated with the Contracting Officer. All SIRs should clearly inform offerors how communications will be handled during the initial screening phase.
The purpose of communications is to ensure there are mutual understandings between the FAA and the offerors about all aspects of the procurement, including the offerors' submittals/ proposals. Information disclosed as a result of oral or written communication with an offeror may be considered in the evaluation of an offeror's submittal(s).
To ensure that offerors fully understand the intent of the SIR (and the FAA's needs stated therein) the FAA may hold a pre-submittal conference and/or one-on-one meetings with individual offerors. One-on-one communications may continue throughout the process, as required, at the discretion of the service organization. Communications with one offeror do not necessitate communications with other offerors, since communications will be offeror-specific. Regardless of the varying level of communications with individual offerors, the CO should ensure that such communications do not afford any offeror an unfair competitive advantage. During these and future communications, as applicable, the FAA should encourage offerors to provide suggestions about all aspects of the procurement (AMS 3.2.2.3.1.2.2).
Communications may necessitate changes in the FAA's requirements or screening information request (see AMS 3.2.2.3.1.2.4.).   Where communications do not result in any changes in the FAA's requirements, the FAA is not required to request or accept offeror revisions. The use of technical transfusion is always prohibited. Technical leveling, and auctioning techniques are prohibited, except in the use of non-complex competition techniques (see AMS 3.2.2.5.3).

1.6 Evaluation Factors and Subfactors, Weights, Numerical and Adjectival Ratings

a. Evaluation Factors and Subfactors

(1) Overview
You must place the evaluation factors and subfactors from the evaluation plan into Section M (or equivalent) of the SIR.  You will use the factors and subfactors to select the response that represents the best value to the FAA. The factors and sub-factors give the offerors an insight into the significant considerations that you will use in selecting the best value offer and help them to understand the source selection process.  Selecting the correct evaluation factors and subfactors is the most important decision in the evaluation process. Structure the evaluation factors and subfactors and their relative importance to clearly reflect the needs of your acquisition.

(2) Factors and subfactors must:
• Be definable and measurable in readily understood quantitative and/or qualitative
terms,
• Represent the key areas of importance and emphasis to be considered in the source selection decision, and
• Be limited to the essential elements that will enable you to distinguish among the
information/offers; i.e., will be true discriminators.

(3) Structure of Evaluation Factors
Common evaluation factors are cost (or price), technical, past performance, and small business participation. Additionally, as appropriate, you may have other evaluation factors and/or may use one or more levels of subfactors.

(4) Steps Involved in Formulating Evaluation Factors and Subfactors
• Conduct market research as a starting point for development of criteria in order to
maximize competition.
• Brainstorm critical factors and subfactors.
• Identify key discriminators.
• Define the discriminators as evaluation factors and subfactors and their relative order
of importance.
• Assess feedback during SIR(s)

(5) Evaluation Weights
You must assign relative importance to each evaluation factor and subfactor. Tailor the relative importance to your specific requirements. Use priority statements to express the relative importance of the evaluation factors and subfactors. Priority statements relate one
evaluation factor (or subfactor) to each of the other evaluation factors (or subfactors).

(6) Sample Priority Statement
“Technical is the most important factor and is more important than all of the remaining factors combined. Technical is significantly more important than Past Performance. The Past Performance  Factor is more important than the Cost Factor and the Small Business Participation Factor combined.  The Cost Factor is more important than the Small Business Participation Factor.”

b. Numerical and Adjectival Ratings
When using the tradeoff process, you evaluate the non-cost portion(s) of the offer and associated performance and proposal risks using numerical or adjectival ratings .  The success of an evaluation is not so much dependent upon the type(s) of ratings used, but rather on the consistency with which the evaluators use them. For this reason, adjectival ratings must include definitions for each rating so that the evaluators have a common understanding of how to apply them.
c. Result of Proposal Evaluation
At the end of an evaluation, the result must be that each factor and sub-factor are evaluated, the merits and risks of a proposal are documented and numerical or adjectival ratings, when appropriate, are assigned.

1.7 The Evaluation Process

a. Overview
The SET will perform an in-depth, systematic evaluation of the evaluation factors and subfactors set forth in the SIR(s). Using the evaluation factors and subfactors will facilitate an equitable, impartial, and comprehensive evaluation against the SIR(s).

While the specific evaluation processes and tasks will vary, the basic objective remains constant -- to provide the SSO with information to make an informed and reasoned selection.  Towards this end, the evaluators will identify deficiencies, strengths, and weaknesses. 

It is imperative that there be an orderly method for the identification, reporting, and tracking deficiencies, strengths, and weaknesses. Using evaluation forms can ease the administrative burden associated with these tasks. Whatever method you use, it is important that you support the evaluation findings with narrative statements. All evaluations must be documented.  Ratings alone are not conclusive data upon which to make a source selection decision.  Also, all determinations relating to changes in requirements after release of the SIR must be documented in the evaluation report.

b. Conduct Pre-proposal Training
Prior to receipt of proposals, each evaluator should become familiar with all pertinent documents; e.g., the SIR, evaluation plan, and ratings. You should conduct training that includes an overview of these documents and the source selection process, with training on how to properly document each proposal’s strengths, weaknesses, deficiencies and risks. Training should match the contents of this guide and should also include ethics training and the protection of source selection information. This training is especially crucial when there are evaluators with no prior experience.

(1) When using the tradeoff process, identification of strengths,
weaknesses, risks, and deficiencies is crucial because:
The Contracting Officer will consider these items when determining the next step in the source selection process.  They provide the framework for any resultant deliberations and debriefings.  Specific information on the relative strengths and weaknesses is the basis for tradeoff analysis and the source selection decision.  Proposals containing deficiencies are ineligible for award unless the deficiencies are resolved.

c. Past Performance Evaluations
The past performance evaluator(s) assess the performance risk associated with each proposal. The final assessment describes the degree of confidence you have in the offeror’s probability/likelihood of successful contract performance based on that offeror’s demonstrated record of performance under similar contracts. See T3.2.3.A.2c. for guidance on evaluating past performance.

d. Cost (or Price) Evaluations
For fixed priced contracts, the evaluation can be as simple as consideration of adequate price competition and ensuring prices are fair and reasonable. Fixed priced contracts also should be evaluated as to their appropriateness (i.e., consider market prices, appropriate risk and the possibility of a “buy-in”) as to what is being offered. For cost-reimbursement contracts, you must analyze the offerors’ estimated costs for both realism and reasonableness. The cost realism analysis enables you to determine each offeror’s most probable cost of performance. This precludes an award decision based on an overly optimistic cost estimate. Additionally, whenever you perform cost analysis you must also perform profit or fee analysis.  See T3.2.3.A.2c.for guidance on cost and price methodology.

1.8 Selection and Award

a. Overview
After the evaluators have completed their final evaluation, the results of the evaluation will be presented to the SSO.  The SSO may either:

• Make a selection decision (see  below);

• Make a screening decision by screening those offerors determined to be most likely to receive award, thus continuing the screening phase;

• Amend and re-open to initial offerors; or

• Cancel the procurement.

See AMS 3.2.2.3.1.2.5 for details on the SSO decision-making process.

b. Presenting the Evaluation to the SSO
The SET Chairperson is responsible for preparing the documentation of the evaluation for presentation to the SSO.  The SSO will use this documentation as an aid when making a decision based upon exercising prudent business judgment as to which proposal represents the “Best Value.” At the request of the SSO, the SET can present the evaluation results by means of one or more briefings.

c. The Source Selection Decision
The SS0 must document his/her rationale for selecting the successful offeror.  The source selection decision document should explain how the successful proposal compared to other offerors’ proposals based on the evaluation factors and subfactors in the solicitation and should discuss the judgment used in making tradeoffs. In the event that the SSO disagrees with a finding(s) of the SET, the SSO’s rationale shall be part of the decision document.  When the SSO determines that the best value proposal is other than the lowest-priced proposal, the document must explicitly justify paying a price premium regardless of the superiority of the proposal's non-cost rating. The justification must clearly state what benefits or advantages the FAA is receiving for the added price and why it is in the FAA's interest to expend the additional funds.  This justification is required even when the SIR indicates that non-cost factors are more important than cost (or price).  The SSO shall engage legal counsel in review of the source selection decision document to assure that the decision clearly articulates the business judgment of the SSO.  This document becomes part of the official contract file and can be released, provided that any information exempt under the Freedom of Information Act (FOIA) is not released (i.e., proprietary and business sensitive information, trade secrets and cost information).

d. Awarding the Contract
After the SSO has signed the source selection decision document, the Contracting Officer will execute and distribute the contract(s). (Congressional notification may be required – see T3.13.1.4 and T3.13.1.5).

1.9 Notification and Debriefing of Offerors/Lessons Learned

a. Overview
The Contracting Officer must notify all offerors who participated in the competitive process within 3 working days from receipt of award notification to request a debriefing (AMS 3.2.2.3.1.4 ).  Since each offeror puts considerable resources into preparing and submitting a proposal, fairness dictates that you promptly debrief offerors and explain why a proposal was unsuccessful. Timely and thorough debriefings increase competition, encourage offerors to continue to invest resources in the Government marketplace, and enhance the Government’s relationship and credibility with industry.

b. Purposes of a Debriefing
A debriefing:
• Explains the rationale for the offeror’s exclusion from the competition or non-selection for award;
• Instills confidence in the offeror that it was treated fairly;
• Assures the offeror that appropriately qualified personnel evaluated their proposal in accordance with the SIR and applicable laws and regulations;
• Identifies strengths and weaknesses in the offeror’s proposal so the offeror can prepare better proposals in future FAA procurements;
• Reduces misunderstandings and reduces the risk of protests; and
• Gives the offeror an opportunity to provide feedback regarding the SIR process, communications, and the source selection.
A debriefing is not:
• A page-by-page analysis of the offeror’s proposal,
• A point-by-point comparison of the proposals of the debriefed offeror and other offerors, or
• A debate or defense of the FAA's award decision or evaluation results.

c. Notification of Debriefing
Inform the offeror of the scheduled debriefing date by electronic means with immediate acknowledgment requested. If the offeror requests a later date, you should require the offeror to acknowledge in writing that it was offered an earlier date, but requested the later date instead. This procedure will protect the FAA's interests if the offeror subsequently files a protest.

d. Debriefing Methods and Location
You must debrief one unsuccessful offeror at a time. The Contracting Officer is responsible for selecting the method and location of the debriefing. The location should provide a professional environment. Although face-to-face debriefings are frequently used, you may also conduct a debriefing by telephone or electronic means. It may be burdensome for an offeror to attend in person and the needs of the offeror should be afforded due consideration. Likewise, if some of the FAA personnel are located at an installation other than where the debriefing will be conducted, they may participate by telephone or videoconference.
NOTE: You may provide an advance copy of the debriefing to the offeror and allow the offeror to provide written questions for the Government to review prior to the face-to-face, telephone, or video teleconference debriefing.

e. Attendees
• FAA Personnel
The Contracting Officer will chair and control the debriefing and select the FAA attendees. It is extremely important to ensure appropriate FAA personnel attend so that a meaningful debriefing is achieved. The Contracting Officer may rely on Source Evaluation Team to address specialized areas of the offerors’ proposals. The Contracting Officer's legal counsel should participate in preparation of the debriefing. Normally, legal counsel should attend the debriefing when the offeror’s legal counsel is in attendance. In the event there are indicators that a protest is likely, inform your legal counsel. However, the Contracting Officer must not deny a debriefing because a protest is threatened or has already been filed.
• Debriefed Offeror Personnel
The Contracting Officer should ask an offeror to identify all of the firm’s individuals by name and position that will attend the debriefing. Normally, do not restrict the number of personnel the debriefed offeror may bring unless there are space limitations.

f. Preparing for a Debriefing
A poorly prepared debriefing is the surest way to lose the confidence of the offeror and increase the prospects of a protest. The extent of preparation necessary varies considerably with the complexity of each acquisition. Sometimes, merely preparing debriefing charts is sufficient.  Other times, a written script and dry run rehearsals may be beneficial.  Because debriefings are time sensitive, preparation must begin before proposal evaluation is complete. Source Evaluation Team members may assist in preparing debriefing charts (which may be later provided to the offeror). Finally, the Contracting Officer must brief all FAA personnel that will attend the debriefing on their roles and expected demeanor during the debriefing.

g. Handling Questions
As a general rule, do not answer questions “on the fly” and get all questions in writing. Hold a caucus to formulate a response before providing an answer. At the end of the debriefing advise the offeror that the debriefing is officially concluded. At the discretion of the Contracting Officer, you may answer questions submitted by the offeror subsequent to the date on which the debriefing was conducted. However, in such cases, you must advise the offeror that the information is not considered part of the official debriefing (thereby not impacting the protest time period).

h. Other Information to Ensure a Meaningful Debriefing
• In a post-award debriefing, you must disclose the evaluation ratings of the debriefed offeror and awardee to the subfactor level of evaluation; and all significant weaknesses and strengths of the debriefed offeror’s proposal. If the weakness was of significant enough concern to warrant mentioning it during discussions, it is significant for debriefing purposes as well.
• You must disclose the debriefed offeror’s total evaluated prices for each CLIN and the awardee’s total evaluated cost (or price).
• Disclose a summary of the rationale for the contract award decision. The rationale is contained in the source selection decision document. Consider furnishing the debriefed offerors with a copy of this document. However, evaluation information concerning the other unsuccessful offerors and information not releasable under FOIA must be redacted prior to release. You may find it beneficial to provide the unsuccessful offeror(s) with a copy of the document at their debriefing(s). If you choose to provide them with a copy, you must redact the copy to remove information pertinent to other unsuccessful offerors and information that is exempt under FOIA.

i. Lessons Learned Memorandum
A lessons learned memorandum is a valuable tool though which the service organization can relay its procurement experiences to other FAA acquisition personnel.  The memorandum from the Contracting Officer who was involved in the procurement should highlight issues/processes that had a significant impact on the procurement.  Changes that could be made to ensure a more comprehensive evaluation and/or more timely award should also be addressed (AMS 3.2.2.3.1.5)

1.10 Security and Personnel Considerations

1.10.1 Security Considerations

a. Release of Source Selection Information
The Procurement Integrity Act precludes individuals from knowingly disclosing source selection information and contractor bid or proposal information before award of a Federal contract to which the information relates. However, the following individuals are authorized to approve release of source selection information to other authorized Government officials that have signed a non-disclosure statement providing the release would not jeopardize the integrity or successful completion of the procurement (when the release is after issuance of the solicitation, but prior to contract award):
• For source selections subject to the JRC process -- the SSO.
• For other source selections -- the Contracting Officer.

b. Security Briefing
Ensure all attend a security briefing that emphasizes that each Source Selection Team member:
• Is responsible for security of the evaluation and proposal materials and other source selection and proprietary information related to the procurement;
• Should be knowledgeable of, and adhere to, governing security procedures and regulations;
•Will not discuss, communicate, or otherwise deal on matters related to the source selection with any individual not assigned to the SSO, or Contracting Officer, as applicable (see above), and then only within appropriately secure areas; and
•Will challenge the presence of any apparent unauthorized individual within the SSO physical location.

c. Required Certificates and Reports
Each Source Evaluation Team member (including support personnel) must sign a certificate(s) that addresses nondisclosure of information, conflicts of interest, and rules of conduct.

d. Handling of Source Selection Materials
Handle proposal and evaluation material in a manner consistent with “For Official Use Only” or, as appropriate, a higher security classification.  Establish sufficient safeguards to protect the material whether it is in the possession of the Source Evaluation Team members or it is being disseminated, reproduced, transmitted, or stored. Additionally, establish appropriate procedures for disposal (e.g., shredding or burn bag disposal) of the material when it is no longer required.  See T3.13.1.8 Records Retention, and FAA Order 1350.15C Records Organization, Transfer and Destruction Standards.

e. Security of Physical Facilities
In more complex source selections, you may need to establish procedures to ensure the security of the source selection physical facilities. These procedures may include:
• Requiring identification to access the area and requiring authorized visitors (e.g.,
maintenance/service personnel) to sign in and out;
• Ensuring access points to the facilities are either manned at all times by a representative of the Source Selection Team or are kept locked (with appropriate key or password control procedures);
• Establishing procedures for approving visitors to the facilities; and
• Conducting security inspections and spot checks.

f. Responsibilities
All Source Selection Team members are responsible for the security of source selection information. In complex source selections, it may be beneficial to designate certain members of the Source Selection Team to oversee and/or perform security control functions. These duties may be collateral duties or full-time duties of the team member.

1.10.2 Personnel Considerations
a. Experience, Education and Skills
A key to selection of personnel is identification of the experience, education, and business and technical skills required of personnel at all levels of the Source Evaluation Team. Define the required skills and experience with enough flexibility to allow substitution of training for experience. Source selection training methods include formal classes, on-the-job training, study of available source selection documents, and briefings by people with source selection experience.

b. Hierarchy of Source Selection Expertise
• Look within own organization for expertise.
• Export key personnel to an organization with expertise in source selection to participate
and learn.
• Hire contractor experts to augment the Source Evaluation Team assuring there is no organizational conflict of interest.
• If necessary bring in expertise from outside of own organization.
• If expertise does not exist then move acquisition elsewhere.

c. Freedom from Bias or Conflict of Interest
SSO members must not have any biases or conflicts of interest that would impact the source selection process. Financial interests in offerors and employment discussions with offerors are examples of conflicts of interests that would preclude an employee from participating in a source selection.

d. Support Personnel
Once you identify the primary evaluation team, determine if support personnel may be desired or required. Examples of such personnel are:
• Administrative assistant; secretarial support, administrative support (e.g., for briefing charts, evaluation worksheets, etc.),
• Security custodians and special security ("eyes only" messages) personnel,
• Librarian/document-control personnel,
• Reproduction support,
• Visual aids and/or video support personnel,
• Information technology support,
• Transportation support,
• Property support, and
• Budget personnel.

1.11 Oral Presentations

a. Introduction
Oral presentations (sometimes referred to as oral proposals) provide offerors an opportunity to present information verbally that they would normally provide in writing. You can conduct oral presentations in person or via video teleconference. However, a video taped presentation does not constitute an oral presentation since it does not represent a real-time exchange of information.  Oral presentations may be beneficial in a variety of acquisitions. They are most useful when the requirements are clear and complete and are stated in performance or functional terms. Oral presentations are ideal for gathering information related to how qualified the offeror is to perform the work, how well the offeror understands the work, and how the offeror will approach the work.

b. Scope of the Oral Presentation
Before you can decide if oral presentations are appropriate for a given acquisition, you must select the evaluation factors and subfactors. Then decide whether the information you need to evaluate these criteria can be better presented orally or in writing or through a combination of both means.  You cannot incorporate oral statements in the contract by reference, so any information you want to be made part of the contract needs to be submitted in writing. At a minimum, the offeror must submit certifications, representations, and a signed offer sheet (including any exceptions to the FAA’s
terms and conditions) in writing. Additionally, as a rule of thumb, the offeror must submit other hard data ("facts"), such as pricing or costing data and contractual commitments, as part of the written proposal.  Oral presentations can convey information in such diverse areas as responses to sample tasks, understanding the requirements, experience, and relevancy of past performance.  Require offerors to submit their briefing materials in advance of the presentations. This will allow FAA attendees an opportunity to review the materials and prepare any associated questions.

c. Request for Proposal Information
If oral presentations are appropriate, you must notify offerors in the SIR that the FAA will use oral presentations to evaluate and select the contractor. The proposal preparation instructions must contain explicit instructions and guidance regarding the extent and nature of the process that will be used.  Discourage elaborate presentations since they may detract from the information being presented. At a minimum, include the following information in the SIR:
• The types of information the offeror must address during the oral presentations and how they relate to the evaluation criteria,
• The required format and content of the presentation charts and any supporting documentation,
• Any restrictions on the number of charts or the number of bullets per chart and how you will handle material that does not comply with these restrictions,
• The required submission date for the presentation charts and/or materials,
• The approximate timeframe when the oral presentations will be conducted and how you will determine the order of the offerors’ presentations,
• Whether any rescheduling will be permitted if an offeror requests a change after the schedule has been established,
• The total amount of time each offeror will have to conduct their oral presentation,
• Who must make the presentation and a requirement that the offeror provide a list of names and position titles of the presenters,
• Whether the presentation will be video or audio taped,
• The location of the presentation site and a description of the site and resources available to the offeror,
• Any rules and/or prohibitions regarding equipment and media,
• How you will treat documents or information referenced in the presentation material but never presented orally,
• Any limitations on FAA-offeror interactions during and after the presentation,
• Whether the presentation will constitute discussions,
• Whether you will use the information in the oral presentation solely for source selection purposes or whether such information will become part of the contract (which will require a subsequent written submission of that information), and
• Whether the offeror should include any cost (or price) data in the presentation.

d. Timing and Sequencing
Since preparing and presenting an oral presentation involves time and expense, you do not want to require offerors who are not likely to be serious candidates for award to have to conduct oral presentations. This can be an important consideration with small businesses. When this is a concern, establish the competitive range prior to oral presentations and clearly articulate in the SIR the methodology for doing so. The Contracting Officer will often draw lots to determine the sequence of the offerors’ presentations. The time between the first and the last presentation should be as short as possible to minimize any advantage to the offerors that present later.

e. Time Limits
Establish a total time limit for each offeror’s presentation. It is not advisable to limit the time for individual topics or sections within the presentation; this detail is the presenter’s responsibility. If you are planning a question and answer session, exclude it from the allotted time and set a separate time limit for it.  There is no ideal amount of time to be allotted. Make this decision using prudent business judgment based upon the complexity of the acquisition and your own (or others’) experience and lessons learned.

f. Facility
Usually you will want to conduct the presentations at a facility you can control. This helps guard against surprises and ensures a more level playing field. However, nothing precludes you from conducting an oral presentation at an offeror's facility. This may be more efficient if site visits or other demonstrations are part of the source selection.  If you are using a Government-controlled facility, make it available for inspection and, if warranted, a practice session. Allowing offerors to get acquainted with the facility will help ensure that it does not detract from the presentation content.

g. Recording the Presentations
Having an exact record of the presentation could prove useful both during the evaluation process and in the event of a protest or litigation. You can record the oral presentations using a variety of media; e.g., videotapes, audio tapes, written transcripts, or a copy of the offeror’s briefing slides or presentation notes. The SSO is responsible for determining the method and level of detail of the record.  If you use videotaping, allow for the natural behavior of the presenters. If slides or view graphs are used, the camera should view both the podium and screen at the same time. Place the microphones so that all communications can be recorded clearly and at adequate volume. Every effort should be made to avoid letting the recording become the focus of the presentation.  The recording, which is considered source selection information, will become part of the official record.  Provide a copy to the offeror and seal and securely store the master copy of the recording to ensure there are no allegations of tampering in the event of a protest or court action.

h. FAA Attendance
The Contracting Officer should chair every presentation. All of the FAA personnel involved in evaluating the presentations should attend every presentation.

i. Presenters
The offeror’s key personnel who will perform or personally direct the work being described should conduct their relevant portions of the presentations. Key personnel include project managers, task leaders, and other in-house staff of the offeror’s or their prospective key subcontractors’ organizations.  This will avoid the oral presentation becoming the domain of a professional presenter, which would increase costs, detract from the advantages of oral presentations, and adversely affect small businesses.

j. Reviewing the Ground Rules
Prior to each presentation, the Contracting Officer should review the ground rules with the attendees. This inacludes discussing any restrictions on FAA-offeror information exchanges, information disclosure rules, documentation requirements, and housekeeping items. These ground rules should also be included in the solicitation.  If you are using a quiz as part of your evaluation, the Contracting Officer needs to discuss the related ground rules. For example, can the offeror caucus or contact outside sources by cell phone before answering?  Avoid too much control and regulation since it will inhibit the exchange of information. However, if you intend to avoid discussions, the Contracting Officer should control all exchanges during the presentation

k. Evaluation of Presentations
Evaluations should be performed immediately after each presentation. Using preprinted evaluation forms will help the evaluators collect their thoughts and impressions. Remember, even if you use preprinted forms, evaluators have to provide the rationale for their conclusions.

Instructions for Providing Past Performance Information

Offerors shall submit the following information as part of their proposal for both the offeror and proposed major subcontractors: (The information may be submitted prior to the other parts of the proposal, to assist the government in reducing the evaluation period).

A.  A list of the last ____ contracts and subcontracts completed during the past three years and all contracts and subcontracts currently in process. Contracts listed may include those entered into by the federal government, agencies of state and local governments, and commercial customers. Offerors that are newly formed entities without prior contracts should list contracts and subcontracts as required above for all key personnel. Include the following information for each contract and subcontract:

1.  Name of contracting activity
2. Contract number
3. Contract type
4. Total contract value
5. Contract work
6. Contracting Officer and telephone
7. Program manager and telephone
8. Administrative Contracting Officer, if different from # 6, and telephone
9. List of major subcontractors

B.  The offeror may provide information on problems encountered on the contracts and subcontracts identified in A above and corrective actions taken to resolve those problems. Offerors should provide general information on their performance on the identified contracts. General performance information will be obtained from the references. (Use this paragraph if written input from the offeror is desired in addition to the information obtained from the references.)

C.  The offeror may describe any quality awards or certifications that indicate the offeror possesses a high-quality process for developing and producing the product or service required. Such awards or certifications include, for example, the Malcolm Baldridge Quality Award, other government quality awards, and private sector awards or certifications (e.g., the automobile industry's QS 9000, Sematech's SSQA, or ANSI/EIA-599). Identify what segment of the company (one division or the entire company) that received the award or certification. Describe when the award or certification was bestowed. If the award or certification is over three years old, present evidence that the qualifications still apply.

D. Each offeror will be evaluated on his/her performance under existing and prior contracts for similar products or services. Performance information may be used for both responsibility determinations and as an evaluation factor against which offerors' relative rankings will be compared to assure best value to the government. The government will focus on information that demonstrates quality of performance relative to the size and complexity of the procurement under consideration. The Performance Information Form identified in the List of Attachments section will be used to collect this information. References other than those identified by the offeror may be contacted by the FAA with the information received used in the evaluation of the offeror's past performance.

E. Offerors should send their listed private sector references a letter to the following effect authorizing the reference to provide past performance information to the government.

Past performance will be evaluated as follows:

1.           Past performance will receive 35 percent of the non-cost/price factors ratings. Sub-factors A, B, C, D and E are of equal importance and will receive up to 25 percent of the non-cost/price ratings with the other 10 percent allocated to sub-factor G, quality awards. The criteria for a rating of excellent are described with each sub-factor.

          A. Quality of Product or Service - compliance with contract requirements - accuracy of reports - technical excellence. Excellent = There were no quality problems.

          B. Timeliness of Performance - met interim milestones - reliable - responsive to technical direction - completed on time, including wrap-up and contract administration - no liquidated damages assessed. Excellent = There were no unexcused delays.

          C. Cost Control - within budget - current accurate and complete billings - relationship of negotiated costs to actuals - cost efficiencies. Excellent = There were no cost issues.

          D. Business Practices - effective management - effective small/small disadvantaged business subcontracting program - reasonable/cooperative behavior - flexible - effective contractor recommended solutions - business-like concern for government's interests. Excellent = Response to inquiries, technical/service/administrative issues was effective and responsive.

          E. Customer Satisfaction - satisfaction of end users with the contractors service. Excellent = 90 percent or more of end users surveyed rated the service as excellent or better.

          F. Where the offeror has demonstrated an exceptional performance level in any of the above five sub-factors additional consideration can be given by the IPT/PT for that factor. It is expected that this rating will be used in those rare circumstances when contractor performance clearly exceed the performance levels described as "excellent."

          G. Receipt of widely recognized quality awards or certifications. Excellent = Malcolm Baldridge Quality award, or equivalent award, covering the entity submitting the offer.

2. Assessment of the offeror's past performance will be one means of evaluating the credibility of the offeror's proposal, and relative capability to meet performance requirements.

3. Information utilized will be obtained from the references listed in the proposal, other sources known to the FAA, consumer protection organizations, and others who may have useful and relevant information. Information will also be considered regarding any significant major subcontractors, and key personnel.

4. Award may be made from the initial offers without discussions. However, if discussions are held offerors should be given an opportunity to address negative reports of past performance, if the offeror has not had a previous opportunity to review the rating. Recent contracts will be examined to ensure that corrective measures have been implemented. Prompt corrective action in isolated instances may not outweigh overall negative trends.

5. Lack of past performance history relating to this SIR (state how lack of past performance history will affect the evaluation, e.g. neutral rating).

A separate record must be completed for all contracts awarded the competing organization within the past five years. A performance evaluation document will be submitted to the COTR for completion and used to evaluate your organization’s past performance.

1. Contractor Identification

2. Contract No.:

a. Name:

3. Date of Award:

b. Address:

4. Type of Contract:

a. Negotiated

b. Sealed Bid

c. City:

c. Fixed Price

d. Cost Reimbursement

d. State:

e. Zip Code:

e. Other [Specify]

5. Description and location of Work: [Attach additional pages as necessary.]

6. Contracting Officer’s Technical Representative (COTR):

a. Name:

b. Telephone No.:

c. Address:

d. City:

e. State:

f. Zip Code:

7. Contract Amount:

8. Complexity of Work:

a. Difficult

b. Routine

9. Status:

a. Active

b. Complete

10. Contract Completion Date [Include extensions]:

11. Type and Extent of Subcontracting [attach additional pages as necessary]:

SAMPLE 3B - PAST PERFORMANCE QUESTIONNAIRE
I. CONTRACT IDENTIFICATION
i.	Name:	___________________________________
ii.	Description	___________________________________
iii.	Geographic distribution of services under this contract, i.e., local, nationwide, worldwide:	___________________________________
iv.	Number of locations serviced by this contract:	___________________________________
II. EVALUATION
A.	Performance History:
1.	To what extend did the contractor adhere to contract delivery schedules.	Considerably surpassed minimum requirements 4 Exceeded minimum requirements 3 Met minimum requirements 2 Less than minimum requirements 1
	Comment:
2.	To what extent did the contractor submit required reports and documentation in a timely manner?	Considerably surpassed minimum requirements 4 Exceeded minimum requirements 3 Met minimum requirements 2 Less than minimum requirements 1
	Comment:
3.	To what extent were the contractor’s reports and documentation accurate and complete?	Considerably surpassed minimum requirements 4 Exceeded minimum contractual requirements 3 Met minimum requirements 2 Less than minimum requirements 1
	Comment:
4.	To what extent was the contractor able to solve contract performance problems without extensive guidance from government counterparts?	Considerably successful 4 Generally successful 3 Little success 2 No success 1
	Comment:
5.	To what extent did the contractor display initiative in meeting requirements?	Displayed considerable initiative 4 Displayed some initiative 3 Displayed little initiative 2 Displayed no initiative 1
	Comment:
6.	Did the contractor commit adequate resources in timely fashion to the contract to meet the requirement and to successfully solve problems?	Provided abundant resources 4 Provided sufficient resources 3 Provided minimal resources 2 Provided insufficient resources 1
	Comment:
7.	To what extent did the contractor submit change orders and other required proposals in a timely manner?	Considerably surpassed minimum requirements 4 Exceeded minimum requirements 3 Met minimum requirements 2 Less than minimum 1
	Comment:
8.	To what extent did the contractor respond positively and promptly to technical directions, contract change orders, etc.?	Considerably surpassed minimum requirements 4 Exceeded minimum requirements 3 Met minimum requirements 2 Less than minimum requirements 1
	Comment:
9.	To what extent was the contractor’s maintenance and problem tracking/reporting documentation timely, accurate, and have appropriate content?	Considerably surpassed minimum requirements 4 Exceeded minimum requirements 3 Met minimum requirements 2 Less than minimum requirements 1
	Comment:
10.	To what extent was the contractor effective in interfacing with the Government’s staff?	Extremely effective 4 Generally effective 3 Generally ineffective 2 Extremely ineffective 1
	Comment:
B.	TERMINATION HISTORY
11.	Has this contract been partially or completely terminated for default or convenience?	Yes [ Default     Convenience ] No If yes, explain (e.g., inability to meet cost, performance, or delivery schedules).
	Comment:
12.	Are there any pending terminations?	Yes No If yes, explain and indicate the status.
	Comment:
C.	EXPERIENCE HISTORY
13.	How effective has the contractor been in identifying user requirements?	Extremely effective 4 Generally effective 3 Generally ineffective 2 Extremely ineffective 1
	Comment:
14.	What level of integration experience has the contractor demonstrated in the reconfiguration of government owned software, commercial software, and government furnished hardware?	Considerable surpass minimum experience 4 Exceeded minimum requirements 3 Met minimum contractual requirements 2 Less than minimum requirements 1
	Comment:
15.	To what extent was the maintenance and problem reporting/ tracking documentation produced by the contractor’s efforts satisfactory to the users?	Considerably surpassed minimum requirements 4 Exceeded minimum requirements 3 Met minimum contractual requirements 2 Less than minimum requirements 1
	Comment:
16.	To what extent did the contractor coordinate, integrate, and provide for effective subcontractor management?	Considerably surpassed minimum requirements 4 Exceeded minimum requirements 3 Met minimum requirements 2 Less than minimum requirements 1
	Comment:
17.	To what extent did the contractor provide timely technical assistance, both on-site and off-site, when responding to problems encountered in the field?	Considerably surpassed minimum requirements 4 Exceeded minimum requirements 3 Met minimum requirements 2 Less than minimum requirements 1
	Comment:
18.	To what extent did the contractor achieve effective logistics support, i.e., replacement parts, personnel, etc.?	Considerably surpassed minimum requirements 4 Exceeded minimum requirements 3 Met minimum requirements 2 Less than minimum requirements 1
	Comment:
19.	To what extent did the contractor provide quality replacement parts?	Considerably surpassed minimum requirements 4 Exceeded minimum requirements 3 Met minimum requirements 2 Less than minimum requirements 1
	Comment:
20.	To what extent did the contractor meet the repair/response times in the contract?	Considerably surpassed minimum requirements 4 Exceeded minimum requirements 3 Met minimum requirements 2 Less than minimum requirements 1
	Comment:
21.	Did this contract include a Help Desk?	Yes No
	If yes, to what extent was the contractor responsive to users contacting the Help Desk for assistance?	Considerably surpassed minimum requirements 4 Exceeded minimum requirements 3 Met minimum requirements 2 Less than minimum requirements 1
	Comment:
22.	If there was a Help Desk, were users able to make contact with the Help Desk personnel on their first attempt?	Always able on the first attempt 4 More often than not on the first attempt 3 Rarely able on the first attempt 2 Never on the first attempt 1
	Comment:
23.	Were the Help Desk personnel courteous and responsive?	Always courteous and responsive 4 Usually courteous and responsive 3 Rarely courteous and responsive 2 Never courteous and responsive 1
	Comment:
24.	Were user questions resolved in a timely manner?	Always resolved in a timely manner 4 Usually resolved in a timely manner 3 Rarely resolved in a timely manner 2 Never resolved in a timely manner 1
	Comment:
25.	How technically qualified were the Help Desk personnel?	Extremely qualified 4 Satisfactorily qualified 3 Minimally qualified 2 Technically deficient 1
	Comment:
26.	How satisfied are you with the contractor’s Help Desk problem escalation procedures?	Extremely satisfied 4 Satisfactorily satisfied 3 Minimally satisfied 2 Unsatisfied 1
	Comment:
27.	How technically qualified were the maintenance personnel?	Extremely qualified 4 Satisfactorily qualified 3 Minimally qualified 2 Technically deficient 1
	Comment:
D.	COST MANAGEMENT
28.	To what extent did the contractor meet the proposed cost estimates?	Less than estimated cost 4 Comparatively equal to estimate 3 Exceeded the costs 2 Considerably surpassed estimate 1
	Comment:
E.	NARRATIVE SUMMARY	Use this section to explain additional information not included above.
	Comment: