Naval Facilities Acquisition Standards (NFAS)

Naval Facilities Acquisition

Standards (NFAS)

October 2018 edition

Through Change 1, Revised 02 August 2019

2018 Edition, through Change 1 issued 02 August 2019

NAVAL FACILITIES ACQUISITION STANDARDS (NFAS)

2018 EDITION

Page

PART 1—FEDERAL ACQUISITION REGULATIONS SYSTEM 1

Subpart 1.1

—Purpose, Authority, Issuance 1

1.101 (NMCARS) Purpose 1

1.104 (NMCARS) Applicability 1

1.170 (NMCARS) Peer Reviews 1

Subpart 1.3

—Agency Acquisition Regulations 4

1.304 Agency control and compliance procedures 4

1.304-100 (NMCARS) Control of NAVFAC baseline clauses 4

Subpart 1.6

—Career Development, Contracting Authority, and

Responsibilities 4

1.601 (NMCARS) General 5

1.601-90 (NMCARS) Department of the Navy authorities and

Responsibilities 5

1.601-100 Grant officer authority 5

1.602 Contracting Officers 6

1.602-1 (NMCARS) Authority 6

1.602-1-100 Legal review 6

1.602-1-101 NAVFAC solicitation/contract language, Authority 7

1.602-2 (DFARS) Authorized representatives of the

Contracting Officer 8

1.602-3 Ratification of unauthorized commitments (UACs) 13

1.603 Selection, appointment, and termination of

Appointment 14

1.603-1 (NMCARS) General 14

1.603-2 (DFARS) Selection 15

1.603-3 Appointment 17

1.603-4 (NMCARS) Termination 18

1.690 (NMCARS) Requirements to be met before

entering into contracts 18

1.691 (NMCARS) Procurement management oversight 20

1.691-2 Responsibilities 20

1.691-2-100 NAVFAC Procurement Management Assessment

Program (PMAP) 20

1.691-2-101 Internal Business Assessment 20

Subpart 1.7

—Determinations and Findings 21

1.707 Signatory authority 21

PART 2

—DEFINITIONS OF WORDS AND TERMS 22

Subpart 2.1

—Definitions 22

2.101 Definitions 22

2018 Edition, through Change 1 issued 02 August 2019

PART 3—IMPROPER BUSINESS PRACTICES AND PERSONAL

CONFLICTS OF INTEREST (RESERVED) 23

PART 4

—ADMINISTRATIVE MATTERS 24

Subpart 4.6

—Contract Reporting 24

4.604 (NMCARS) Responsibilities 24

Subpart 4.8

—Government Contract Files 24

4.804 Closeout of contract files 24

4.804-1 (NMCARS) Closeout by the office administering

the contract 24

4.804-5 Procedures for closing out contract files 24

4.805 Storage, handling and disposal of contract files 24

PART 5

—PUBLICIZING CONTRACT ACTIONS 25

Subpart 5.2

—Synopses of Proposed Contract Actions 25

5.205 Special situations 25

5.207 Preparation and transmittal of synopses 25

Subpart 5.4

—Release of Information 25

5.404 (NMCARS) Release of long-range acquisition

Forecasts 25

Subpart 5.5

—Paid Advertisements 26

5.502 (DFARS) Authority 26

PART 6

—COMPETITION REQUIREMENTS 27

Subpart 6.2

—Full and Open Competition After Exclusion of Sources 27

6.202 (NMCARS) Establishing or maintaining alternative

Sources 27

Subpart 6.3

—Other Than Full and Open Competition 27

6.303-1-100 Bridge contract actions 27

6.304 Approval of the justification 27

6.304-100 Requirements for limiting competition under

MAC task orders 28

6.304-101 Bridge contract action approvals 28

Subpart 6.4

—Sealed Bidding and Competitive Proposals 30

6.401 Sealed bidding and competitive proposals 30

Subpart 6.5

—Competition Advocates 30

6.501 Requirement 30

6.502 (NMCARS) Duties and responsibilities 30

PART 7

—ACQUISITION PLANNING 31

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Subpart 7.1—Acquisition Plans 31

7.102 Policy 31

7.103 (NMCARS) Agency-head responsibilities 31

7.105 Contents of written acquisition plans 33

7.107 (NMCARS) Additional requirements for acquisitions

involving consolidation, bundling, or substantial

bundling 33

7.107-2 (NMCARS) Consolidation 33

7.107-3 (NMCARS) Bundling 33

Subpart 7.4

—Equipment Lease or Purchase 34

7.470 (DFARS) Statutory requirements 34

PART 8

—REQUIRED SOURCES OF SUPPLIES AND SERVICES 35

Subpart 8.4

—Federal Supply Schedules 35

8.404 Use of Federal Supply Schedules (FSS) 35

8.405-6 (NMCARS) Limiting Sources 36

Subpart 8.70

—(DFARS) Coordinated Acquisition 36

8.7003 Applicability 36

8.7003-1 Assignments under integrated materiel

management (IMM) 36

PART 9

—CONTRACTOR QUALIFICATIONS 37

Subpart 9.1

—Responsible Prospective Contractors 37

9.104-5 Certification regarding responsibility matters 37

Subpart 9.5

—Organizational and Consultant Conflicts of Interest 37

9.506 Procedures 37

9.507 [Removed and reserved] 37

9.507-2 [Removed and reserved] 37

PART 10

—MARKET RESEARCH 38

10.001

Policy 38

PART 11

—DESCRIBING AGENCY NEEDS 39

11.002

Policy 39

Subpart 11.1

—Selecting and Developing Requirements Documents 39

11.104 [Removed and Reserved] 39

11.105-100 Proprietary specifications 39

11.106 (DFARS) Purchase descriptions for service

Contracts 39

Subpart 11.2

—Using and Maintaining Requirements Documents 39

11.201 Identification and availability of specifications 39

11.201-100 Construction contract drawings and specifications 39

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11.201-101 Collateral equipment 39

Subpart 11.4

—Delivery or Performance Schedules 40

11.402 Factors to consider in establishing schedules 40

11.404-100 NAVFAC solicitation/contract language, Phased

Construction Schedule 40

Subpart 11.5

—Liquidated Damages 41

11.502 Procedures 41

Subpart 11.6

—Priorities and Allocations 43

11.602 Policy 43

11.603 Background 43

11.604 Procedures 43

PART 12

—ACQUISITION OF COMMERCIAL ITEMS 44

Subpart 12.1

—Acquisitions of Commercial Items – General 44

12.102 (NMCARS) Applicability 44

Subpart 12.2

—Special Requirements for the Acquisition of Commercial

Items 44

12.207 (NMCARS) Contract type 44

Subpart 12.70

—Limitation on Conversion of Procurement from Commercial

Acquisition Procedures 44

12.7001 (NMCARS) Procedures 44

Subpart 12.71

—Pilot Program for Acquisition of Military-Purpose

Nondevelopmental Items 44

12.7102-2 (NMCARS) Reporting Requirements 44

PART 13

—SIMPLIFIED ACQUISITION PROCEDURES 45

13.003

Policy 45

Subpart 13.2

—Actions at or Below the Micro-Purchase Threshold 45

13.270 (DFARS) Use of the Governmentwide Commercial

Purchase Card 45

Subpart 13.3

—Simplified Acquisition Methods 46

13.301 (DFARS) Governmentwide Commercial

Purchase Card 46

13.303 (DFARS) Blanket Purchase Agreements (BPAs) 47

PART 14

—SEALED BIDDING 48

Subpart 14.2

—Solicitation of Bids 48

14.201 Preparation of invitations for bids 48

14.201-100 Bid items 48

14.211 Release of acquisition information 48

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Subpart 14.3—Submission of Bids 48

14.304 Submission, modification, and withdrawal of bids 48

Subpart 14.4

—Opening of Bids and Award of Contract 49

14.402 Opening of bids 49

14.402-1 Unclassified bids 49

14.404 Rejection of bids 49

14.404-1 Cancellation of invitations after opening 49

14.405 Minor informalities or irregularities in bids 49

Subpart 14.5

—Two-Step Sealed Bidding 49

14.502 Conditions for use 49

PART 15

—CONTRACTING BY NEGOTIATION 50

Subpart 15.1

—Source Selection Processes and Techniques 50

15.101-2 Lowest price technically acceptable (LPTA) source

selection process 50

Subpart 15.2

—Solicitation and Receipt of Proposals and Information 50

15.203 Requests for proposals 50

15.209-100 NAVFAC provision/solicitation language,

All or None Offers 50

Subpart 15.3

—Source Selection 51

15.303 Responsibilities 51

15.304 Evaluation factors and significant subfactors 54

15.306 Exchanges with offerors after receipt of proposals 55

15.308 Source selection decision 55

15.371 (DFARS) Only one offer 55

15.371-5 (DFARS) Waiver 55

Subpart 15.4

—Contract Pricing 55

15.403 Obtaining cost or pricing data 55

15.403-1 (NMCARS) Prohibition on obtaining certified cost

or pricing data (10 U.S.C. 2306a and 41 U.S.C.

Chapter 35) 55

15.403-3 (DFARS) Requiring data other than certified cost

or pricing data 56

15.403-5 Instructions for submission of certified cost or pricing

data and data other than certified cost or pricing

data 56

15.404 Proposal analysis 56

15.404-1 Proposal analysis techniques 56

15.404-2 Information to support proposal analysis 57

15.404-4 Profit 57

15.404-73 (DFARS) Alternate structured approaches 57

15.404-73-100 Alternate structured approaches for construction

contracts 57

15.404-73-101 Alternate structured approaches for

architect-engineer contracts 58

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Subpart 15.6

—Unsolicited Proposals 58

15.606 Agency procedures 58

PART 16

—TYPES OF CONTRACTS 59

Subpart 16.3

—Cost-Reimbursement Contracts 59

16.302 Cost Contracts 59

16.302-100 Approval of cost-reimbursement type contracts

16.306 (DFARS) Cost-plus-fixed-fee contracts 59

Subpart 16.4

—Incentive Contracts 59

16.404 (DFARS) Fixed-price contracts with award fees 59

16.405-2 Cost-plus-award fee 60

Subpart 16.5

—Indefinite Delivery Contracts 60

16.503 Requirements contracts 60

16.504 Indefinite-quantity contracts 60

16.504-100 NAVFAC solicitation/contract language,

Minimum and Maximum Fees [Architect-Engineer

Indefinite Quantity Contracts] 60

16.504-101 Facilities support indefinite quantity contracts 61

16.504-103 FedMall contracts 62

16.505 Ordering 63

16.505-70 Orders under multiple award contracts 64

16.505-100 Orders for Engineering Services and/or Program

Management Services, as identified in

NMCARS Annex 22 65

Subpart 16.6

—Time-and-Materials, Labor Hour, and Letter Contracts 65

16.601 (DFARS) Time-and-materials contracts 65

16.602 Labor hour contracts 66

PART 17

—SPECIAL CONTRACTING METHODS 67

Subpart 17.2

—Options 67

17.202 Use of options 67

17.202-100 Use of options in construction contracts 67

17.202-101 Use of options in facilities support contracts 67

17.202-102 Use of options in architect-engineer contracts 67

17.202-103 Use of options in Utility Service contracts 67

17.204 Contracts 68

17.207 Exercise of options 68

17.208 Solicitation provisions and contract clauses 69

17.208-100 NAVFAC contract clauses 69

Subpart 17.5—Interagency Acquisitions 69

17.500-100 Scope of subpart, Interagency and Intra-Agency

Acquisitions 69

17.502-1 [Removed and Reserved] 70

17.502-2 (NMCARS) The Economy Act 70

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Subpart 17.7—Interagency Acquisitions: Acquisitions by NonDefense

Agencies on Behalf of the Department

of Defense 72

17.703 (NMCARS) Policy 72

17.770 (NMCARS) Procedures 72

Subpart 17.74—Undefinitized Contract Actions 73

17.7403 Policy 73

17.7403-100 Management of undefinitized contract actions (UCAs) 73

17.7404 (DFARS) Limitations 73

17.7404-1 Authorization 73

17.7404-2 Price ceiling 74

17.7404-4 Limitations on obligations 74

17.7405 (NMCARS) Plans and reports 74

PART 18—EMERGENCY ACQUISITIONS (RESERVED) 74

PART 19

—SMALL BUSINESS PROGRAMS 75

Subpart 19.5

—Set-Asides for Small Business 75

19.505 (DFARS) Rejecting Small Business Administration

recommendations 75

Subpart 19.7

—The Small Business Subcontracting Program 75

19.702 Statutory requirements 75

19.703 (DFARS) Eligibility requirements for participating

in the program 75

19.704 Subcontracting plan requirements 75

Subpart 19.8

—Contracting with the Small Business Administration

(The 8(a) Program) 75

19.803 Selecting acquisitions for the 8(a) program 75

19.805 Competitive 8(a) 76

19.805-1 General 76

PART 20— (RESERVED) 76

PART 21—(RESERVED) 76

PART 22

—APPLICATION OF LABOR LAWS TO GOVERNMENT

ACQUISITIONS 77

Subpart 22.1

—Basic Labor Policies 77

22.101 Labor relations 77

22.101-1 (NMCARS) General 77

Subpart 22.3—Contract Work Hours and Safety Standards 77

22.305 Contract clause 77

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Subpart 22.4—Labor Standards for Contracts Involving Construction 77

22.406 Administration and enforcement 77

22.406-13 Semiannual enforcement reports 77

Subpart 22.5

—Use of Project Labor Agreements for Federal

Construction Projects 78

22.503 Policy 78

PART 23—ENVIRONMENT, ENERGY AND WATER EFFICIENCY,

RENEWABLE ENERGY TECHNOLOGIES,

OCCUPLATIONAL SAFETY, AND DRUG-FREE

WORKPLACE (RESERVED) 78

PART 24

—PROTECTION OF PRIVACY AND FREEDOM OF

INFORMATION 79

Subpart 24.2

—FREEDOM OF INFORMATION ACT 79

24.203 Policy 79

PART 25

—FOREIGN ACQUISITION 80

Subpart 25.1

—Buy American Act—Supplies 80

25.103 (DFARS) Exceptions 80

Subpart 25.2

—Buy American Act—Construction Materials 80

25.202 (NMCARS) Exceptions 80

Subpart 25.4

—Trade Agreements 80

25.401 (NMCARS) Exceptions 81

25.403 (NMCARS) World Trade Organization Government

Procurement and Free Trade Agreements 81

Subpart 25.70

—Authorization Acts, Appropriation Acts, and Other

Statutory Restrictions on Foreign Acquisition 81

25.7003 (DFARS) Restrictions on acquisition of specialty metals 81

25.7003-3 (NMCARS) Exceptions 81

Subpart 25.75—Balance of Payments Program 81

25.7500 (DFARS) Policy 81

PART 26—OTHER SOCIOECONOMIC PROGRAMS (RESERVED) 81

PART 27—PATENTS, DATA, AND COPYRIGHTS (RESERVED) 81

PART 28

—BONDS AND INSURANCE 82

Subpart 28.1

—Bonds and Other Financial Protections 82

28.101 Bid guarantees 82

28.101-1 Policy on use 82

28.101-2 Solicitation provision or contract clause 82

28.101-2-100 NAVFAC provisions or contract clauses 82

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28.102 Performance and payment bonds and alternative

payment protections for construction contracts 82

28.102-1 General 82

28.102-100 Performance and payment bonds for Multiple

Award Contracts 83

28.102-3-100 NAVFAC solicitation/contract language, Notice of

Bonding Requirements 83

28.102-3-101 Alternative Protection for Construction in a foreign

Country 83

28.103 Performance and payment bonds for other than

construction contracts 84

28.103-1 General 84

28.103-2 Bonds or other security for dismantling, demolition

or removal of improvements 84

28.106 Administration 84

28.106-2 Substitution of surety bonds 84

Subpart 28.2—Sureties and Other Security for Bonds 84

28.203 Acceptability of individual sureties 84

Subpart 28.3

—Insurance 84

28.306 Insurance under fixed-price contracts 84

PART 29

—TAXES 86

Subpart 29.4

—Contract Clauses 86

29.402 Foreign contracts 86

29.402-100 NAVFAC requirement for solicitation/contracts when

work will be performed at U.S. installations in Japan 86

29.402-101 NAVFAC solicitation/contract language, Consumption

Tax Exemption Procedures on Purchase of Goods

and Services by the United States Armed Forces

in Japan 86

PART 30

—COST ACCOUNTING STANDARDS ADMINISTRATION 88

Subpart 30.2

—CAS Program Requirements 88

30.201-5 (NMCARS) Waiver 88

PART 31—CONTRACT COST PRINCIPLES AND PROCEDURES

(RESERVED) 88

PART 32

—CONTRACT FINANCING 89

Subpart 32.1

—Non-Commercial Item Purchase Financing 89

32.112 Nonpayment of subcontractors under contracts for

non-commercial items 89

32.112-1 Subcontractor assertions of nonpayment 89

Subpart 32.6

—Contract Debts 89

32.604 Demand for Payment 89

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32.607-1 Installment Payment 89

32.607-2 Deferment of Collection 89

Subpart 32.7

—Contract Funding 90

32.702 Policy 90

Subpart 32.8

—Assignment of Claims 90

32.803 Policies 90

32.805 Procedure 90

Subpart 32.11

—Final Payment 91

32.1100 Final payment for construction and architect-engineer

Contracts 91

Subpart 32.70

—Electronic Submission and Processing of Payment

Requests and Receiving Reports 91

32.7002 (NMCARS) Policy 91

PART 33

—PROTESTS, DISPUTES AND APPEALS 92

Subpart 33.1

—Protests 92

33.103 (NMCARS) Protests to the agency 92

33.104 (NMCARS) Protests to GAO 92

33.170 (NMCARS) Briefing requirement for protested

acquisitions valued at $1 billion or more 92

Subpart 33.2

—Disputes and Appeals 92

33.211 Contracting Officer’s decision 92

33.214 Alternative dispute resolution (ADR) 93

33.214-100 Disputes resolution board (DRB) 93

33.2100 Remand by NAVFAC for settlement by negotiation 93

Subpart 33.90

—Procedures(NMCARS) 93

33.9001 Claims approval requirements 93

PART 34—MAJOR SYSTEM ACQUISITION (RESERVED) 93

PART 35—RESEARCH AND DEVELOPMENT CONTRACTING

(RESERVED) 93

PART 36

—CONSTRUCTION AND ARCHITECT-ENGINEER

CONTRACTS 94

Subpart 36.2

—Special Aspects of Contracting for Construction 94

36.201 (FAR/DFARS) Evaluation of contractor

performance 94

36.202 Construction Specification Institute (CSI) format 94

36.205 Statutory cost limitations 94

36.207 Pricing fixed-price construction contracts 94

36.213 Special procedures for sealed bidding in

construction contracting 94

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36.213-3 Invitations for bids 94

36.213-3-101 Budgeted amount 94

36.213-70 (DFARS) Additive or deductive items 94

36.215 Special procedure for cost-reimbursement

contracts for construction 94

36.2100 Environmental remedial action contracts 95

36.2102 Non-appropriated funded (NAF) contract 95

Subpart 36.3—Two-Phase Design-Build Selection Procedures 95

36.303-1-100 Phase One 95

Subpart 36.5

—Contract Language 95

36.5-100 NAVFAC solicitation/contract language, Utilities

for Construction and Testing 95

36.5-101 Instructions for use of NAVFAC language 96

36.5100 NAVFAC provision and contract clauses 96

Subpart 36.6

—Architect-Engineer Services 96

36.601 Policy 96

36.601-3 Applicable contracting procedures 96

36.601-3-100 Indefinite quantity architect-engineer contracts 97

36.602 Selection of firms for architect-engineer contracts 97

36.602-1 Selection criteria 97

36.602-2 Evaluation boards 97

36.602-3 Evaluation board recommendations 98

36.602-4 Selection authority 98

36.602-5 Short selection process for contracts not to exceed

the simplified acquisition threshold 98

36.604 Performance evaluation 98

36.605 Government cost estimate for architect-engineer work 98

36.606 Negotiations 98

36.607 Release of information on firm selection 98

36.608 Liability for Government costs resulting from design

errors or deficiencies 99

36.609-100 Instructions for use of NAVFAC language 99

36.609-101 NAVFAC solicitation/contract language, Drawings

Prepared by an Architect-Engineer 100

36.609-102 NAVFAC solicitation/contract language,

Key Personnel 100

36.6100 Inspection services 101

PART 37

—SERVICE CONTRACTING 102

Subpart 37.1

—Service Contracts—General 102

37.102-100 Policy – Government Estimate of Services Cost 102

37.103-100 Contracting Officer responsibility 102

37.110 Solicitation provisions and contract clauses 102

37.110-100 NAVFAC solicitation/contract language, Substitutions

of Key Personnel 102

37.192 Service Acquisition Workshops (SAWs) 103

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Subpart 37.2—Advisory and Assistance Services 103

37.203 Policy 103

37.203-100 Required approval 103

37.204 (NMCARS) Guidelines for determining availability

of personnel 103

Subpart 37.3

—Dismantling, Demolition or Removal of Improvements 104

37.302 Bonds or other security 104

Subpart 37.5

—Management Oversight of Service Contracts 104

37.502 Exclusions 104

37.504 Contracting Officer’s Responsibilities 104

Subpart 37.100

—Facilities Support Contracting 105

37.1000 Contract format 105

37.1002 Evaluation of contractor performance 105

37.1003 Instructions for use of NAVFAC language 105

Subpart 37.101

—Forestry Contracting 106

37.1010 NAVFAC policy 106

Subpart 37.3100

—Dismantling, Demolition, or Removal of

Improvements 106

37.3100 NAVFAC policy 106

PART 38—FEDERAL SUPPLY SCHEDULE CONTRACTING

(RESERVED) 106

PART 39

—ACQUISITION OF INFORMATION TECHNOLOGY 107

39.002 Definitions 107

Subpart 39.1

—General 107

39.101 Policy 107

PART 40—(RESERVED) 108

PART 41

—ACQUISITION OF UTILITY SERVICES 109

Subpart 41.1

—General 109

41.102 Applicability 109

41.103 Statutory and delegated authority 110

Subpart 41.2

—Acquiring Utility Services 110

41.201 Policy 110

41.202 Procedures 111

Subpart 41.4

—Administration 112

41.401 Monthly and annual review 112

41.4100 Contract records 112

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PART 42—CONTRACT ADMINISTRATION AND AUDIT SERVICES 113

Subpart 42.2

—Contract Administration Services 113

42.202 Assignment of contract administration 113

42.202-100 Contracting Officer’s representatives 113

Subpart 42.12

—Novation and Change-of-Name Agreements 113

42.1202 Responsibility for executing agreements 113

Subpart 42.15

—Contractor Performance Information 113

42.1503 Procedures 113

42.1503-100 Preparation and use of contractor performance

evaluation reports 113

PART 43

—CONTRACT MODIFICATIONS 115

Subpart 43.1

—General 115

43.102 Policy 115

43.102-100 Execution of modifications 115

Subpart 43.2

—Change Orders 116

43.201 (NMCARS) General 116

43.201-100 Policy 116

43.201-101 Use of Lean Modification Process for actions

up to SAT 117

43.204 (NMCARS) Administration 117

43.204-70-7 (NMCARS) Plans and reports 117

PART 44

—SUBCONTRACTING POLICIES AND PROCEDURES 118

Subpart 44.2

—Consent to Subcontracts 118

44.202 Contracting Officer’s evaluation 118

44.202-1 (FAR) Responsibilities 118

44.202-1-100 Post award subcontractor changes 118

PART 45

—GOVERNMENT PROPERTY 119

Subpart 45.1

—General 119

45.103 General 119

45.103-73 Contracting Officer’s responsibilities 119

Subpart 45.70—(DFARS) Appointment of Property Administrators and

Plant Clearance Officers 119

45.7001 Selection, appointment and termination 119

PART 46

—QUALITY ASSURANCE 120

Subpart 46.1

—General 120

46.104 Contract administration office responsibilities 120

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Subpart 46.2—Contract Quality Requirements 120

46.202 Types of contract quality requirements 120

46.202-2 Government reliance on inspection by contractor 120

46.202-2-100 Construction Surveillance and Inspection

(Title II) Services 120

Subpart 46.4

—Government Contract Quality Assurance 120

46.4100 NAVFAC contract quality assurance requirements 120

Subpart 46.7

—Warranties 120

46.704 Authority for use of warranties 120

PART 47

—TRANSPORTATION 121

Subpart 47.5

—Ocean Transportation by U.S.-Flag Vessels 121

47.574 (DFARS) Solicitation provisions and contract

clauses 121

PART 48—VALUE ENGINEERING (RESERVED) 121

PART 49

—TERMINATION OF CONTRACTS 122

Subpart 49.1

—General Principles 122

49.101 Authorities and responsibilities 122

49.101-100 Reporting requirements 122

Subpart 49.4

—Termination for Default 122

49.402 Termination of fixed-price contracts for default 122

49.402-3 Procedure for default 122

49.402-8 (NMCARS) Reporting information 122

49.403 (NMCARS) Termination of cost-reimbursement

contracts for default 122

49.405 Completion by another contractor 122

49.405-100 Four-party agreement 122

Subpart 49.70

—Special Termination Requirements 123

49.7001 (NMCARS) Congressional notification on significant

contract terminations 123

PART 50—EXTRAORDINARY CONTRACTUAL ACTIONS AND THE

SAFETY ACT (RESERVED) 123

PART 51—USE OF GOVERNMENT SOURCES BY CONTRACTORS

(RESERVED) 123

PART 52

—SOLICITATION PROVISIONS AND CONTRACT CLAUSES 124

Subpart 52.1

—Instructions for Using Provisions and Clauses 124

52.101 (NMCARS) Using Part 52 124

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Subpart 52.2—Texts of Provisions and Clauses 124

52.200 [Removed and Reserved] 124

5252.209-9300 [Removed and Reserved] 124

5252.236-9301 [Removed and Reserved] 124

5252.236-9310 [Removed and Reserved] 124

PART 53

—FORMS 125

Subpart 53.2

—Prescription of Forms 125

53.200 Scope of subpart 125

Subpart 53.3

—Illustration of Forms 125

53.300 Scope of subpart 125

APPENDIX A

—NAVFAC REPORTING REQUIREMENTS 126

Report Matrix 126

APPENDIX B

—NAVFAC SUBJECT MATTER EXPERT CONTACT LIST 128

APPENDIX C

—SUMMARY OF SIGNIFICANT CHANGES 131

2018 Edition, through Change 1 issued 02 August 2019

NAVAL FACILITIES ACQUISITION STANDARDS (NFAS)

2018 EDITION

PART 1

FEDERAL ACQUISITION REGULATIONS SYSTEM

SUBPART 1.1—PURPOSE, AUTHORITY, ISSUANCE

1.101 (NMCARS) Purpose.

(a) The Naval Facilities Engineering Command’s (NAVFAC) Naval Facilities

Acquisition Standards (NFAS) provide general guidance to field Contracting Officers in

the execution of their delegated authority.

(b) The NFAS implements or supplements the Federal Acquisition Regulation (FAR),

the Defense Federal Acquisition Regulation Supplement (DFARS) and the Navy Marine

Corps Acquisition Regulations Supplement (NMCARS). It is not a stand-alone

document, but must be read together with the FAR, DFARS, and NMCARS.

arrangement and numbering system. However, subdivisions below the section and

subsection levels may not always correlate directly to the FAR designated paragraphs

and subparagraphs. A DFARS or NMCARS cite in parentheses immediately after the

NFAS cite means related coverage is contained in the DFARS or NMCARS (e.g., 1.104

(NMCARS). Numbered divisions of this manual with a suffix in the “100” series (e.g.,

1.105-2-100) contain subject matter related to but not contained in a FAR, DFARS, or

NMCARS numbered division. Omission from the NFAS of a subpart, section or

subsection, which appears in the FAR, DFARS, or NMCARS denotes that there is no

additional coverage in the NFAS.

(d) The NFAS and other NAVFAC procurement policy and guidance are available

electronically via the NAVFAC Headquarters (HQ) Acquisition (ACQ) Portal pages.

Updates to the NFAS will be posted to the NAVFAC HQ ACQ Portal page. Each update

will include an effective date.

(e) The NFAS is maintained by the appropriate Echelon II Division Director.

Proposed changes to or deviations from the NFAS along with rationale for the changes

or deviations shall be coordinated with your local chain of command and submitted to

the appropriate Echelon II Division Director.

1.104 (NMCARS) Applicability.

The NFAS applies to all NAVFAC activities in the same manner and to the same

extent as specified in FAR 1.104, DFARS 201.104, and NMCARS 5201.104.

1.170 (NMCARS) Peer Reviews.

(a) Pre-Award and Post Award Peer Reviews (PRs) shall be conducted for service

(includes Environmental, Construction, and Architect-Engineering (A-E)) solicitations and

contracts (including task/delivery orders) of $50M or more, including option periods, in

accordance with NMCARS 5201.170. Postaward PRs shall be conducted at the

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midpoint of the performance period to allow time to finalize any PR recommendations

prior to exercising the option period. All PRs shall be conducted using the procedures at

DFARS Procedures, Guidance and Information (PGI) 201.170. For multiple award

contracts, one PR shall apply for all resulting contracts.

(b) Peer Review authority and thresholds are as follows:

Type of Action

Threshold

(Base plus all

Options)

Review

Level

Peer Review

Authority

Services,

Environmental,

Construction, &

A-E*

$50M to <$250M

Echelon III

Echelon IV

Echelon III CCO

Echelon IV CCO

$250M to

<$500M for Sole

Source**

$250M to <$1B

for Competitive

Echelon II to

include

Contracting

personnel

from other

Head of

Contracting

Activity

(HCA)

Assistant Commander for

Acquisition

$500M or more

for Sole Source**

$1B or more for

Competitive

Department

of the Navy

(DoN)/Office

of the

Secretary of

Defense

(OSD)

Deputy Assistant Secretary of the

Navy for Acquisition and

Procurement(DASN(AP))/

Director,

Defense Pricing and Contracting

(DPC)

Supplies

$50M to <$500M

for Sole Source**

$50M to <$1B for

Competitive

Echelon III

Echelon IV

Echelon III CCO

Echelon IV CCO

$500M or more

for Sole Source**

$1B or more for

Competitive

DoN/OSD DPC

*Note: A-E actions shall utilize the two phase Peer Review process; Phase I

prior to negotiations (including selection report) and Phase II prior to award.

**Note: This sole source threshold is applicable for Peer Review only. See

NFAS 6.3 for approval of the Justification and Approval (J&A) for a sole source

acquisition if required.

PRA will:

(i) Identify the PR Leader; designate the Team; facilitate the pre-award and post-

award PR; and oversee the PR process and ensure completion of reviews. The PRA

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shall not be re-delegated. This review shall be performed by a senior level contracting

official, be independent of the Contracting Officer whose procurement is the subject of

the review and when practicable, be independent of the Source Selection Authority

(SSA).

(ii) Prepare and endorse a PR Report of Findings and Recommendations for

each phase.

(d) When the Assistant Commander for Acquisition is the PRA:

(i) The CCO will identify the local Peer Review Team Leader; designate the

Team; facilitate the pre-award and post-award review; and oversee the review process

and ensure completion of reviews.

1. Prepare and endorse a local PR Report of Findings and

Recommendations for each phase.

2. Submit the local PR Report of Findings and Recommendations to

appropriate Echelon II Division Director as part of the request for

Assistant Commander for Acquisition review.

(ii) The PRA will identify the Echelon II Team Leader; designate the Team;

facilitate the pre-award and post-award PR; and oversee the review process and ensure

completion of reviews. The PRA shall not be re-delegated. This review shall be

performed by a senior level contracting official, and be independent of the SSA and the

Contracting Officer whose procurement is the subject of the review.

The PRA or Team Leader will:

1. Invite a peer systems command (SYSCOM) to participate in the Peer

Review;

2. Be responsible for providing to the peer reviewer(s) all associated

documentation at least 5 working days in advance of the scheduled

review or meeting.

3. Document the comments received during the peer review and the

adjudication of comments.

(iii) Prepare and endorse a PR Report of Findings and Recommendations for

each phase.

(iv) Ensure the PR Report is submitted to DASN(AP).

(e) When DPC is the PRA:

(i) The CCO will identify the local Peer Review Team Leader; designate the

Team; facilitate the pre-award and post-award review; and oversee the review process

and ensure completion of reviews.

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1. Prepare and endorse a local PR Report of Findings and

Recommendations for each phase.

2. Submit the local PR Report of Findings and Recommendations to

appropriate Echelon II Division Director as part of the request for DPC review.

(ii) Assistant Commander for Acquisition and/or appropriate Echelon II Division

Director will:

1. Facilitate the pre-award and post award PR;

2. Submit the local PR Report of Findings and Recommendations to

appropriate DON/OSD representative as part of the request for DPC

review.

(iii) PRA will prepare and endorse a PR Report of Findings and

Recommendations for each phase.

(f) Within 10 working days from the receipt of any level PR Report of Findings and

Recommendations, the Contracting Officer shall prepare a Disposition Memorandum

(DM) containing the PRA’s recommendations and the disposition of those

recommendations. The Contracting Officer shall maintain a copy of the DM in the file

and provide a copy to the PRA. When Assistant Commander for Acquisition, DASN or

DPC is the PRA, the CCO shall endorse the DM and forward to the appropriate Echelon

II Division Director for review and further dissemination to DASN/DPC when applicable.

(g) DoD templates with suggested questions for each PR phase, as well as other

resources, are provided at the following website:

http://www.acq.osd.mil/dpap/cpic/cp/peer_reviews.html

(h) By the 15

day of each month, Echelon III activities shall submit the PR Rolling

Forecast Report for their area of responsibility to the Echelon II People, Process and

Policy Director.

SUBPART 1.3—AGENCY ACQUISITION REGULATIONS

1.304 Agency control and compliance procedures.

1.304-100 (NMCARS) Control of NAVFAC baseline clauses.

Only COMNAVFACENGCOM approved provisions and clauses shall be used in

solicitations and contracts. No other provisions or clauses other than those prescribed

by FAR, DFARS, NMCARS, or the NFAS may be used without following the procedures

at NMCARS 5201.304.

SUBPART 1.6—CAREER DEVELOPMENT, CONTRACTING AUTHORITY,

AND RESPONSIBILITIES

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1.601 (NMCARS) General.

(a) NAVFACENGCOM (Echelon II) contracting authority is delegated by

COMNAVFACENGCOM to Echelon III Commanders/Commanding Officer. Any or all

authority may be re-delegated to an Echelon III Commander/Commanding Officer unless

restricted by a provision contained in this standard. Echelon III

Commanders/Commanding Officer may delegate to Echelon III Vice Commander/XO

and Echelon IV Commanding Officers unless otherwise restricted.

(b) Echelon III CCOs shall oversee and monitor the contractual procedures,

performance, and staffing of field level contracting offices under their cognizance.

make any necessary determinations or take any actions that are reserved for the CCO,

unless otherwise restricted by a provision contained in this manual. Designated

individuals must be Level III warranted.

1.601-90 (NMCARS) Department of the Navy authorities and responsibilities.

(a) When it is unclear which agency is responsible for a requirement the matter shall

be resolved at the local level if at all possible. Local decisions should be focused on

satisfying customer requirements in the most efficient and economical means possible.

If it is still unclear, Echelon III/IV CCO shall consult with the appropriate Echelon II

Division Director.

(b) All requests from other commands for delegation of contracting authority that is

under NAVFAC cognizance shall be forwarded to the appropriate Echelon II Division

Director.

delegations received from other HCAs to DASN(AP) by 30 January of each year.

1.601-100 Grant officer authority.

(a) COMNAVFACENGCOM, the Assistant Commander for Acquisition, and the

Deputy Director for Acquisition have been appointed grants officers by the Under

Secretary of the Navy. This grant officer authority is limited to entering into grants and

cooperative agreements:

(1) necessary to execute the Defense Environmental Restoration Program

(DERP)

(2) with local governments to provide for certain Caretaker functions at military

installations to be closed as authorized under the DoD Base Closure and

Realignment Act of 1990 (BRAC)

(3) to execute Cultural Resources Management

(4) to execute Natural Resources Management

(b) The authority for DERP and BRAC MAY NOT be re-delegated.

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delegated to the Echelon III CCO with further re-delegation allowed to Echelon IV CCOs.

Echelon III and IV CCOs may further re-delegate authority to their respective Division

Directors, only on an as needed basis. Echelon III and IV Division Directors must have

at least one year of experience with Cooperative Agreements prior to receiving a re-

delegation. Unless otherwise waived by the Assistant Commander for

Acquisition/Deputy Director for Acquisition, all appointed grants officers must complete

the Defense Acquisition University

(DAU) course GRT 201, Grants and Agreements

Management prior to being appointed as a re-delegated grants officer. GRT 201 can be

substituted with an equivalent course that is approved by the Echelon II Client/Ops I

Division Director.

(d) Each BRAC Caretaker Services Cooperative Agreement submitted to

COMNAVFACENGCOM for signature must contain a written Determination, approved

by the authorized designee within Assistant Secretary of the Navy (Installations &

Environment) (ASN (I&E)), that the Cooperative Agreement is in the best interests of the

United States.

(e) All Cooperative Agreements shall include evidence that funds are available for

obligation for the intended purpose and action.

(f) Grants administrators will be appointed in writing by the grants officer. Unless

otherwise waived by the Assistant Commander for Acquisition/Deputy Director for

Acquisition, completion of GRT 201 or approved equivalent course is required prior to

appointment as a grants administrator. The appointment letter will identify the duties

and responsibilities of the grants administrator.

1.602 Contracting Officers.

1.602-1 (NMCARS) Authority.

1.602-1-100 Legal review.

(a) Counsel shall review and sign Streamlined Acquisition Plans (STRAPs) for

requirements expected to exceed $100M. Counsel review is optional for STRAPs or

Management and Oversight Process for the Acquisition of Services – Streamlined

(MOPAS-S) under $100M.

(b) Each solicitation (Request for Proposal (RFP) or Invitation for Bid (IFB)) for basic

contracts with a total estimated value expected to exceed the simplified acquisition

threshold (SAT), as defined in FAR 2.101, shall be reviewed by NAVFAC Counsel prior

to issuance. For firm fixed-price contracts with standard terms, provisions, and clauses

and with a total value not expected to exceed $5,000,000, the Contracting Officer may

satisfy this requirement by forwarding the standardized provisions and clauses on an

annual basis to Counsel for review. Each contract file shall contain written

documentation indicating the date each solicitation was reviewed and the identity and

signature of the Counsel who performed the review.

and signed by Counsel prior to approval by the SSA; SSPs below the threshold may be

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reviewed at the discretion of the Facilities Engineering Command (FEC) Legal Counsel.

Counsel shall review all evaluation records and narratives from the Source Selection

Evaluation Board (SSEB), any Evaluation Notices prepared by the SSEB, and the

written comparative analysis and award recommendation from the Source Selection

Advisory Council (SSAC) before presentation to the SSA.

(d) NAVFAC Counsel shall provide written concurrence and signature on all

determination and findings, justification and approvals, protests, claims, ratification

actions, competitive range determinations, substitution of sureties, alternate payment

protections, non-responsiveness determinations, unacknowledged amendments, bid

irregularities, bid mistakes, acceptance of late bids or proposals, rejection of all bids or

proposals, reassignment issues, individual sureties, assignment of claims, takeover

agreements, novation requests, terminations, tax/duty issues, requests for equitable

adjustment in excess of the SAT, or other legal reviews requested by the Contracting

Officer.

1.602-1-101 NAVFAC solicitation/contract language, Authority.

(a) Use the following NAVFAC language entitled, “Authority,” in all

solicitations/contracts except acquisitions for commercial items. The language should

be included in Section H of solicitations using Uniform Contract Format (UCF) or; for

solicitations using the Construction Specifications Institute (CSI) formats available in the

Standard Procurement System (SPS), include the language in Division 00800 of

solicitations using the undated CSI format of if using the CSI 2012 format include the

language in Division 00 73 00.

Authority

1. No person other than the Contracting Officer has authority to bind the Government

with respect to this contract.

2. No action or omission of any government employee or representative other than the

Contracting Officer shall increase or decrease the scope of this contract or shall

otherwise modify the terms and conditions of this contract.

3. In no event shall any of the following be effective or binding on the Government or

imputed to the Contracting Officer with respect to this contract:

(a) An understanding or agreement between the Contractor and anyone other than

the Contracting Officer;

(b) A purported modification or change order issued by anyone other than the

Contracting Officer;

funding or make payments; or

(d) An order, direction, consent, or permission from anyone other than the

Contracting Officer to:

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(i) Incur costs in excess of a specified estimated cost, allotment of funds, or other

ceiling; or

(ii) Expend hours in excess of a specified level of effort.

(End of NAVFAC language)

1.602-2 (DFARS) Authorized representatives of the Contracting Officer.

The following individuals may be designated to assist Contracting Officers in the

technical monitoring or administration of a contract:

(a) Contracting Officer’s Representative (COR).

(1) Designation. A COR shall be designated for all service contracts and task

orders (including environmental, A-E, and construction) including both firm-fixed-price

and other than firm-fixed price contracts. The COR assists in the technical monitoring or

administration of contracts. Service contracts and task orders requiring monitoring and

surveillance shall be validated to ensure that work has been performed in accordance

with contract/task order requirements before payment is authorized. The surveillance

activities performed by CORs should be tailored to the dollar value/complexity of the

specific contract for which they are designated.

The COR will also be appointed as the Departmental Accountable Official (DAO).

The DAO is responsible for providing technical oversight and information to the

Certifying Officer confirming the overall percentage of work that was received and

completed is in accordance with the terms and conditions of the contract. However,

foreign national indirect hire employees that are appointed as CORs shall not be

appointed as DAOs but may be permitted to perform DAO operational duties with

adequate internal controls to support certification.

Contracting Officers may exempt the COR appointment requirement when the

following four conditions are met:

(i) The contract will be awarded using simplified acquisition procedures or the

task order value is at or below the SAT;

(ii) The requirement is not complex;

(iii) The Contracting Officer will retain and execute COR surveillance and

validation duties assuring separation of functions in accordance with NMCARS

5203.101-1 for initiating request, award of contract or order, performing receipt,

inspection, acceptance of supplies/services, and certification/approval in Wide Area

Workflow (WAWF); and

(iv) The Contracting Officer documents the file, in writing, with the specific

reasons why the appointment of a COR is unnecessary.

(2) Appointment. The Contracting Officer shall formally appoint individuals as

CORs in the Joint Appointment Module (JAM) under the single sign on environment,

Procurement Integrated Enterprise Environment (PIEE). Due to system constraints,

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COR appointment shall occur post award. Although the formal COR appointment is

done after award, the contract action, at time of award shall identify the COR and

provide the COR’s contact information. COR appointments using the smartform

designation letter in JAM shall define the scope and limitations of the COR’s authority,

specifically addressing the responsibilities for reviewing and validating the accuracy and

reasonableness of invoices. Considerations for appointment of multiple CORs include:

multiple locations of performance, multiple disciplines or functional areas, need for

constant surveillance, size of requirement, and subject technical matter skill sets. A

COR is not authorized to appoint, delegate, redelegate, or sub-delegate COR

responsibilities to another person; this includes to the COR Supervisor, a technical point

of contact (TPOC) or subject matter expert (SME). TPOCs and SMEs are government

technical personnel providing assistance to a COR. TPOCs and SMEs are not formally

appointed positions; however, technical experts are often required for successful

oversight of contractor performance and may be used at the discretion of the appointed

COR to assist in administration, oversight, and performance assessments. TPOCs and

SMEs performing COR functions shall be appointed as a COR. Unless the COR

appointment contains other provisions for automatic termination, the appointment shall

be effective through completion of the contract/task order close out action, unless sooner

revoked, until the COR is reassigned, or the individual’s employment is terminated.

Revocation of a COR appointment may be effected at any time by the appointing or

higher authority, or any successor to either. Revocation shall be made in writing.

(3) Qualifications/training. COR designees must have the requisite technical

experience to provide the technical expertise necessary for performance of the COR

function.

(i) At a minimum, COR designees shall have completed DAU course CLC

106, Contracting Officer’s Representative with a Mission Focus or DAU course CLC 222,

Contracting Officer’s Representative Online Training course. Additionally, DAU course,

CLC 206, Contracting Officer Representative in a Contingency Environment is

mandatory for CORs supporting contingency operations in a contingency environment.

Each COR and COR Supervisor shall review the DoD Instruction 5000.72

through

Change 1, of August 2018, DoD Standard for Contracting Officer’s Representative

(COR) Certification to determine whether CLC 106 or CLC 222 is the most appropriate

course for the type/complexity of the contract/order prior to COR nomination in

conjunction with the Contracting Officer. Typically, CLC 106 is required for Type A fixed-

price, lower performance risk requirements (i.e., basic construction, architect-

engineering (A-E) services, etc.), and CLC 222 is required for Type B and C that are

other than low performance risk type requirements (i.e., efforts performed in multiple

regions/remote geographic locations, cost contracts, combined pricing BOS contracts,

environmental remediation, etc.). Contracting Officers may waive some COR training

requirements and designate COR responsibilities when necessary for continuation of

services. In these cases, COR management is responsible for CORs’ completion of

training within 21 days for Type A CORs and 35 days for Type B and C, unless other

specific timeframe is agreed to by the Contracting Officer. All CORs, COR Supervisors,

Contracting Officers, and Contract Specialists are highly encouraged to attend the CTC

342, NAVFAC Contracting Officer Representative COR/COAR course to gain an

awareness and understanding of each individual’s responsibility for successful and

effective contract administration and management. Other COR training requirements

include annual Ethics training, annual Combating Trafficking in Persons, and if

necessary, contract specific training due to issues related to the contract type, category,

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and complexity. Other online systems may be required in the performance of assigned

duties. CORs are highly encouraged to take training, if applicable, for the JAM and for

the Surveillance and Performance Monitoring module (SPM), Contractor Performance

Assessment Reporting System (CPARS) and Wide Area Workflow. Once designated,

CORS must complete the following 10 hours of refresher training every three years to

include: CLC 106, annual Ethics training, and annual Combating Trafficking in Persons.

For CORs that are appointed for actions that are considered other than low risk, an

additional six hours of continuous learning training is required for a total of 16 hours of

refresher training every three years. The continuous learning refresher training will be

based on the specifics of the contracting requirement, preferences of COR

management, and Contracting Officer recommendation. Contracting Officers may waive

COR specific initial and refresher training requirements for COR nominees who have

obtained a minimum of Defense Acquisition Workforce Improvement Act (DAWIA) Level

II Certification in Contracting (1102s), Industrial Property Management (1103s), or

Quality Assurance (1910s).

(ii) COR designees must have a minimum of six months of relevant

experience for Type A requirements and 12 months of relevant experience for Type B

and C requirements in a field or position commensurate with the responsibilities that will

be delegated to the COR under a specific contract or task order. Relevant experience

includes knowledge or practical experience in technical, professional, or administrative

fields gained from what one has observed, encountered, or undergone that is generally

acquired through job performance, on-the-job training, or through direct observation of

events or activities. The Contracting Officer may waive experience requirements.

(4) Authority. CORs are responsible to the Contracting Officer for those actions

delegated by the Contracting Officer, including those related to Government Furnished

Property if applicable, as specifically addressed in their letter of appointment. For each

contract/order assigned, CORs shall maintain an electronic file in SPM, which is

considered a part of the official contract file. The electronic COR file may also be

maintained as a hardcopy file or a combination of both if organized and cross

referenced, as long as it is accessible for audit purposes and posting is to an access

restricted portal or other electronic data storage system that is approved for use.

However, the file in SPM must include, as a minimum, the items identified in DFARS PGI

202.602-2(d)(vi). Upon contract action completion, the COR shall provide all COR files

to the Contracting Officer for proper disposition. The COR shall not and does not have

the authority to take any action, either directly or indirectly, that could change the

price/cost or fee, quantity, quality, scope, delivery schedule, labor mix or other terms and

conditions of the contract and/or task order. Only the Contracting Officer has the

authority to make such changes.

(5) Evaluation and documentation. The Contracting Officer shall annually review

the COR’s files for accuracy and completeness. The results of the Contracting Officer’s

review shall be documented in SPM. If the contract performance period is less than one

year, this evaluation shall be conducted prior to contract/task order completion.

(b) Contracting Officer’s Authorized Representative (COAR).

(1) Designation. Echelon III/IV CCOs may delegate COAR authority to civilian

engineer/architects, including foreign nationals, in Facility Engineering & Acquisition

Division/Resident Officer in Charge of Construction (FEAD/ROICC) offices in

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accordance with the policies below. COARs may also be separately appointed as CORs

for construction contracts. Civil Engineer Corps officers with appropriate training and

experience may perform COAR functions without being appointed as COARs.

(2) Appointment. Echelon III/IV CCOs shall formally appoint individuals as

COARs by appointment letter. Appointments shall specify the extent and limitations of

the COAR’s authority to act on behalf of the Contracting Officer. Unless the appointment

contains other provisions for automatic termination, the appointment shall be effective,

unless sooner revoked, until the COAR is reassigned or the individual’s employment is

terminated. COAR appointment may be revoked at any time by the appointment

authority, or higher authority, or any successor to either. Revocation shall be made in

writing.

(3) Qualifications/training. Prior to appointment, Echelon III and IV CCOs shall

ensure COAR designees have the following training:

(i) Minimum training: ACQ 101, CTC 342, CLC 106, and annual Ethics

training. CECOS Course A-4A-0101, Introduction to FEAD/ROICC, can be substituted

for CTC 342. Course fulfillment provides a means to receive credit for courses based on

work experience, education, training, or any combination of those. Course requirements

may be waived in extraordinary circumstances and must be approved by the Echelon

III/IV CCO. COARs receiving a training waiver shall complete the training requirements

within one year of the waiver.

(ii) Experience. For delegations under $25,000, a minimum of one-year

applicable experience in a ROICC environment or equivalent is required. For delegations

between $25,000 and $150,000, a minimum of two years’ applicable experience in a

FEAD/ROICC environment or equivalent is required. For delegations between $150,000

and $250,000, a minimum of two years’ applicable experience in a FEAD/ROICC

environment or equivalents is required along with prior COAR experience.

(iii) Education: A four-year Bachelor of Science or Arts Degree, from an

accredited, four-year degree granting institution, in any field of engineering or

architecture.

(4) Authority. COARs may only be delegated authority to negotiate in-scope

modification changes below $250,000 on construction contracts. The delegations are

based on the needs of the FEAD/ROICC office and the qualifications of the COAR. This

includes authority to agree to quantities of required materials, equipment, direct labor,

time, field overhead, home office overhead, and profit.

(5) Responsibilities. To maintain appropriate separation of contractual and

technical functions, as a minimum, the individual responsible for the award of a contract

or placement of order shall not perform the receipt/ inspection/acceptance of

supplies/services function. In addition to typical duties for construction contracts, the

COAR shall execute the following duties in accordance with his/her appointment letter:

(i) Request proposals.

(ii) Negotiate agreements (including the establishment of pre-negotiation

positions per FAR 15.406-1).

2018 Edition, through Change 1 issued 02 August 2019

(iii) Ensure funds are available.

(iv) Properly document (post-negotiation memorandum) the file in a way

acceptable to the Contracting Officer.

(v) COAR’s will be responsible for fully completing their actions, e.g. input to

SPS/FIS. COARs may request assistance as necessary.

(6) Contracting Officer authority and responsibilities. The Contracting Officer

shall:

(i) Retain ultimate authority for overall administration of contracts.

(ii) Approve all COAR negotiated agreements and associated documentation

of the agreement (post-negotiation memorandum).

(iii) Assist COARs as necessary.

(iv) Issue the SF-30 modification.

(1) Designation. The Contracting Officer may designate individuals, either from

within or outside of the contracting organization, as ordering officers, with the authority to

execute task/delivery orders thereby obligating funds under NAVFAC indefinite delivery

type contracts (IDTC). An ordering officer may be appointed for valid purposes provided

the Contracting Officer determines appointment is essential for the efficient operation of

the contracting mission. Strict operational control over ordering officers is necessary to

preclude violations of law and regulations. Care must be exercised in determining how

many ordering officers are necessary yet controllable.

(2) Appointment. Contracting Officers shall formally appoint individuals as

ordering officers by appointment letter. The activity to which the ordering officers are

assigned need not have their own contracting authority. The appointment letter shall

specify the extent and limitations of the ordering officer’s authority to act on behalf of the

Contracting Officer. Unless the appointment contains other provisions for automatic

termination, the appointment shall be effective, unless sooner revoked, until the ordering

officer is reassigned or the individual’s employment is terminated. Revocation of an

ordering officer appointment may be affected at any time by the appointment authority,

or higher authority, or any successor to either. Revocation shall be made in writing.

(3) Qualifications/training. Because IDTCs vary in dollar value and complexity,

the qualifications, skills, and training needed by ordering officers may also vary. The

appointment and training of ordering officers requires consideration of the type of

ordering to be performed.

(4) Authority/responsibilities. The authority of an ordering officer is limited to

placement of task/delivery orders for pre-priced contract line items under an IDTC.

Except as authorized for emergency situations, Ordering Officers do not have the

authority to modify the basic contract or task/delivery orders. Under limited situations,

the designation official (Contracting Officer) may grant an ordering officer limited

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authority to modify task/delivery orders only for emergency situations. Task/delivery

orders requiring negotiation of level of effort or scope may only be executed by a

warranted contracting official. Oral orders may be used only when specifically

authorized. Such orders may not exceed $10,000 and must be confirmed by issuance of

a written task/delivery order within two working days. The contract must identify the

individual(s) who have the authority to issue oral orders. Any authority delegated to an

ordering officer is not redelegable.

(5) Evaluation and documentation. Supplementing the normal monitoring of the

ordering officer, the Contracting Officer shall maintain an activity file on each ordering

officer as part of the contract file. The purpose of this file is to record and maintain the

results of reviews by the Contracting Officer of the ordering officer's contract related

activities. The Contracting Officer shall annually evaluate and document the

performance of the ordering officer and provide a copy of this evaluation to the ordering

officer's organizational head.

(d) Departmental Accountable Official.

(1) Designation. Departmental Accountable Officials (DAOs) include those

individuals who perform a technical oversight function and who provide the Certifying

Officer with information that confirms the overall percentage of work that was

received/completed in accordance with the terms and conditions of the contract.

(2) Appointment. Contracting Officers shall formally appoint individuals, except

comptroller personnel, as DAOs. Appointments shall be made by appointment letter and

by completion of a DD Form 577, and shall specify the types of payments authorized for

certification. DAO appointments shall remain in full force and effect until revoked or the

individual is reassigned or employment is terminated.

(3) Training. Prior to appointment, the Contacting Officer shall ensure the DAO

has successfully completed CLC 106, Contracting Officer’s Representative Online

Training or CLC 222 Contracting Officer’s Representative Online Training.

(4) Responsibilities. DAOs are responsible in the performance of their duties for

providing to a certifying officer information, data, or services that the certifying officer

directly relies upon in the certification of vouchers for payment. DAOs are pecuniarily

liable for erroneous payments resulting from their negligent actions in accordance with

section 2773a of title 10, United States Code.

1.602-3 Ratification of unauthorized commitments (UACs).

(a) UACs over $100,000 shall be ratified by Commander, NAVFACENGCOM. This

authority is not re-delegable.

(b) By delegation, authority to ratify UACs of $100,000 or less is as follows:

$100,000 or less* Echelon II Asst Commander for ACQ or

Deputy Director for ACQ

$50,000 or less* Echelon III/IV Commander/

Commanding Officer or Echelon III/IV CCO

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*The authority to ratify, at any level, reverts to the head of the contracting activity

(HCA) without power of delegation if the HCA has 15 or more UAC’s exceeding the

micro-purchase threshold each for that fiscal year (FY) or when the person committing

the UAC has made, or the Contractor performing the UAC has submitted, a UAC at any

point in the past. This determination will be made at HQ ACQ after submission of the

quarterly reports. If authority reverts back to the HCA, ratification packages shall be

submitted via the Echelon II Division Director for review and endorsement for HCA

approval.

When an individual or a contractor is involved or submits more than one UAC, the

authority for that UAC and other future UACs committed by the individual or contractor

reverts back to the HCA. There is no expiration or reset of this requirement.

the same individual.

(d) When a ratification action is completed, regardless of dollar value, a copy of the

complete ratification package shall be submitted to the respective ECH III or ECH IV

People, Process and Policy Division.

(e) Reports.

(1) Upon determination of the need for ratification of a UAC, the activity, where

the ratifiable action occurred, shall report the UAC within 10 days from the date the

action is determined to be a UAC to their ECH III or ECH IV using the NAVFAC reporting

template addressing the NMCARS Annex 15 required information.

(2) Echelon III’s shall consolidate and submit a quarterly report to HQ’s of ALL

UACs and ratification actions for their area of responsibility (AOR), regardless of dollar

value, by 20 January, 20 April, 20 July, and 20 October.

(f) The Contracting Officer identified in FAR 1.602-3 and NMCARS 5201.602-3 does

not include a Governmentwide Commercial Purchase Card (GCPC) cardholder or an

individual with a GCPC warrant.

1.603 Selection, appointment, and termination of appointment.

1.603-1 (NMCARS) General.

Authority for the selection, appointment and termination of appointment of

Contracting Officers is delegated as follows:

(a) Echelon III Commanders/Commanding Officer are delegated authority to appoint

as Contracting Officers, individuals serving in the contracting career field within their

commands and at Echelon IV activities, and at field offices under their cognizance. This

authority may be redelegated no lower than the Echelon III CCO.

(b) Echelon IV Commanding Officers are delegated authority to appoint as

Contracting Officers, individuals serving in the contracting career field within their

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commands and at field offices under their cognizance. This authority may be

redelegated no lower than the Echelon IV CCO.

determines the warrant level required for approval or execution (e.g., the absolute dollar

value of an action that adds $500,000 of work and deducts $200,000 of work is

$700,000.)

1.603-2 (DFARS) Selection.

(a) Selection criteria for Contracting Officer appointments (warrants) are listed in

DFARS 201.603-2. Education and training requirements for warrants are also set forth

in DoD Instruction 5000.66

Defense Acquisition Workforce Education, Training, and

Career Development Program (27 Jul 2017). In addition to the education and training

requirements,

DoD Instruction 5000.66 also requires that at least first-level performance

appraisals of Contracting Officers are performed by supervisors within the individual’s

contracting chain of command.

DAU courses may be fulfilled by following the guidance at

http://icatalog.dau.mil/DAUFulfillmentPgm.aspx

. Course fulfillment provides a means

for AT&L Workforce members to receive credit for DAU courses based on work

experience, education, training, or any combination of those. Position requirements may

be waived in exceptional circumstances. Waivers must be approved by the NAVFAC

Senior Contracting Official (Assistant Commander for Acquisition) for those instances

where a statutory requirement has not been met (i.e., DAU certification courses,

education, etc.)

Prior to appointing any individual as a Contracting Officer, the appointing official

shall ensure that the individual meets the requisite knowledge, experience, and

qualitative performance appropriate for the dollar value and complexity of the

prospective contracting responsibilities. DAWIA certification is not an entitlement to be

warranted. If employee or member of armed service is fully qualified for a warrant at a

lower threshold than required by the position, the individual may hold a warrant at the

lower level until such time as the higher level qualifications are met. The NAVFAC

warrant level requirements specified below must be met in order to qualify to serve in an

acquisition position as a Contracting Officer with authority to award and/or administer

simplified acquisitions and contracts:

(1) Simplified Acquisition Procedures (SAP). Award of simplified acquisitions,

delivery/task orders and modifications above the micro-purchase threshold but not

exceeding the SAT.

(i) Experience. Six months of recent experience in Government or

commercial contracting applicable to the dollar threshold or nature of the procurement

actions for which the warrant will be issued.

(ii) Training. Successful completion of CON 237, Simplified Acquisition

Procedures. For IT procurement, Contracting Officers are required to successfully

complete ISA 101, Basic Information Systems Acquisition.

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(2) Level I. Award of contracts, delivery/task orders and modifications with

values up to $1,000,000.

(i) Experience. Two years of recent, progressively complex and responsible

contracting and/or staff experience in Government or commercial contracting.

(ii) Training. In addition to the required Defense Acquisition University

(DAU) level courses, the successful completion of the following assignment-specific

courses, when applicable.

CON 243, Architect-Engineer Contracting

CON 244, Construction Contracting

CTC 337, Facilities Support Contracting

CTC 423, Environmental Contracting

If you currently hold, or previously held, a warrant that included construction

authority, and you completed CTC 343 Construction Contract Modifications, you are not

required to take CON 244, Construction Contracting. CTC 343 is considered an

acceptable predecessor course in this situation. If you currently hold, or previously held,

a warrant that included A-E authority, and you completed CTC 366 Architect -

Engineering Contract Management, you are not required to take CON 243, Architect

Engineer Contracting. CTC 366 is considered an acceptable predecessor course in this

situation. Additionally, the supervisor is responsible to ensure employee has experience

and is knowledgeable of cost reimbursable contract administration principles when

employee responsibilities include environmental cost contracts. For IT procurement,

Contracting Officers are required to successfully complete ISA 101, Basic Information

Systems Acquisition.

(3) Level II. Award of contracts, delivery/task orders and modifications with

values up to $10M.

(i) Experience. Three years of recent, progressively complex and

responsible contracting and/or staff experience in Government or commercial

contracting.

(ii) Training. Same as above and Level II courses.

(4) Level III. Award of contracts, delivery/ task orders and modifications with the

following dollar limitations:

Unlimited Echelon II Commander, Assistant Commander for

Acquisition, and Contracting Officer; Echelon III

Commander, Commanding Officer, Vice

Commander, Executive Officer, and CCO

Up to $1 billion Echelon IV Commanding Officer, Executive Officer,

and CCO; Echelon III Division Director

Up to $500M Echelon III/IV Contracting Officer

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(i) Experience. Four or more years of recent, progressively complex and

responsible contracting and/or staff experience in Government or commercial

contracting.

(ii) Training. Same as above and Level III courses.

(5) Governmentwide Commercial Purchase Card (GCPC). Warranted

cardholders executing the following types of transactions: placing electronic

delivery/task orders and modifications above the micro-purchase threshold, but not

exceeding the SAT, against IDIQ contracts with firm fixed price line items on FedMall;

Fleet Logistics Center cardholders supporting NAVFAC, in accordance with the

Memorandum of Agreement (MOA) dated 21 July 2005, placing orders for supplies

against General Services Administration (GSA) Schedules above the micro-purchase

threshold but not exceeding the SAT; and warranted cardholders located outside the

United States as defined by DFARS 213.301(1) making purchases that exceed the

micro-purchase threshold but not exceeding $25,000 if the purchase meets the criteria

stated in DFARS 213.301(2). In accordance with NAVSUPINST 4200.99

series,

cardholders located outside of the U.S. making purchases using foreign currency must

consider the daily exchange rate when making purchases to ensure they are within their

authorized spending limit, not-to-exceed $25,000.

(i) Experience. Six months of government procurement experience, which

may include: using FedMall for orders over $2,500, using the GCPC for open market

purchases up to $2,500, or other related procurement experience.

(ii) Training. In addition to the requirements specified by

NAVSUPINST

4200.99, CON 237, SAP Procedures, DAU Purchase Card Training and annual Navy

Purchase Card training must be taken. Note: GCPC warrants are exempt from the

Continuing Education requirement.

(b) Warrants shall only be issued to qualified GS-1102 and Civil Engineer Corps

Officers; however, this restriction does not apply to GCPC warrants prescribed in NFAS

13.301.

currently performing Contracting Officer duties. Warrants are not transferable upon

permanent change of duty station.

(d) Certificates of Appointment (SF-1402 Warrants) for non-1102 Government

Purchase Cardholders shall be issued and signed by Echelon III

Commanders/Commanding Officer/Echelon IV Commanding Officers or CCOs in

accordance with NAVSUPINST 4200.99

(e) It is NAVFAC policy that a warrant may be used throughout the Command on a

short term basis to support specific contingency operations, temporary duty

assignments, or onsite visits.

(f) For indefinite delivery contracts that include options, the warrant level must cover

the potential maximum ordering amount of the base period.

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1.603-3 Appointment.

(a) Appointments will be documented and copies filed as prescribed at FAR 1.603-3.

The SF-1402 will contain any warrant limitations (i.e., undefinitized contract actions up to

$150,000 per UCA or authority is limited to $700,000 for construction), including

limitations on the period of appointment. The original Certificate of Appointment shall be

provided to the appointed Contracting Officer.

(b) Appointing officials shall issue warrants based on the individual’s proven

capabilities, office workload, and business environment. Changes, either increasing or

decreasing the existing warrant level of a Contracting Officer, shall be made solely at the

discretion of the appointing official. When an appointing official determines to make

such changes, a new Certificate of Appointment shall be issued.

DoD

Instruction 5000.66, Defense Acquisition Workforce Education, Training, and Career

Development Program (27 July 2017), that requires Defense Acquisition Workforce

members to acquire 80 Continuous Learning Points every two years.

(d) Echelon IIIs shall submit the Warrants Annual Report from each Facility

Engineering Command (FEC) within their area of responsibility (AOR) to the Echelon II

Command Warrant Representative/People, Process and Policy Director by 3 December.

NFAS Appendix A summarizes all reporting requirements.

(e) GCPC warrants for Fleet Logistics Center (FLC) cardholders supporting NAVFAC

are issued in accordance with NAVFAC/NAVSUP MOA dated 21 July 2005.

1.603-4 (NMCARS) Termination.

(a) Appointments of Contracting Officers remain in effect as long as appointees are

assigned to the position and/or organization (FEC) stated on the warrant and the

authorities remain the same, unless terminated sooner by the appointing official, his

successor, COMNAVFACENGCOM or his designee. CCOs shall ensure warrants are

terminated if necessary upon the internal movement of personnel to positions which may

have duties that no longer require holding a Contracting Officer warrant.

(b) A Contracting Officer appointment shall be terminated in writing when the

individual is transferred from the position due to reassignment outside of the

organization (FEC) or permanent change of station/duty.

1.690 (NMCARS) Requirements to be met before entering into contracts.

(a) This delegation does not apply to Utilities Privatization or Special Ventures

acquisitions. All business clearances/negotiation memorandums for Utilities Privatization

shall be submitted to the Echelon II Division Director for approval.

(b) Review and approval levels for business clearances/negotiation memorandums

shall include the value of all options or option years and maximum award fee under a

contract. For indefinite delivery contracts, the approval authorities are based upon the

total ceiling price of the solicitation/contract. For a multiple award indefinite delivery

solicitation/contract, the total ceiling price includes the aggregate value of all proposed

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contracts. (As an example, a multiple award indefinite delivery solicitation with a

maximum value of $240M that results in award of four contracts, the aggregate

maximum value of all task orders issued during the life of the contracts may not exceed

$240M). The dollar value of an indefinite delivery solicitation/contract is not the

minimum guarantee amount or the estimated value of the seed project.

for all competitive and non-competitive actions awarding basic contracts as well as

contract modifications with values greater than the certified cost or pricing data

threshold. The actions listed in NMCARS 5201.690(c), including task/delivery orders

and associated modifications at any dollar value, do not require a Business Clearance

Memorandum in the format at NMCARS Annex 2, but do require a Pre-Negotiation and

Post-Negotiation Memorandum when discussions/negotiations are held. A combined

Pre-/Post-Negotiation Memorandum may be prepared only if no discussions/negotiations

are held (award is made on original proposal) or for actions below the SAT. However, if

negotiations are held, a pre-negotiation position is required to be established prior to

negotiations per FAR 15.406-1. Approval level shall be based on the dollar value of the

task/delivery order or associated modification.

(d) Pre-Negotiation Business Clearance/Pre-Negotiation Memorandum.

(1) Review of a Pre-Negotiation Business Clearance/Pre-Negotiation

Memorandum shall be determined by the Echelon III/IV Commanders/CCOs.

(2) Approval of a Pre-Negotiation Business Clearance/Pre-Negotiation

Memorandum shall be as follows:

(i) Actions up to and including $750,000 threshold shall be approved by the

Contracting Officer.

(ii) Actions over $750,000 shall be approved by a Contracting Officer a level

above the individual assigned the action.

(iii) The approving Contracting Officer shall hold a warrant commensurate

with the absolute dollar value of the action (i.e., absolute dollar value is $700,000 for an

action that adds $500,000 of work and deducts $200,000 of work).

(e) Post-Negotiation Business Clearance/Post-Negotiation Memorandum approval

levels are as follows:

U Dollar Value AApproval Authority

Up to and including $750,000 Contracting Officer

Over $750,000

up to and including $30M Contracting Officer a level above the

individual assigned the action

Over $30M up to and including $100M Echelon III/IV Division

Director/CCO/00/09 (or Acting)

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Over $100M *Echelon II Division Director

*Echelon III/IV Commanders/Commanding Officers/CCOs shall ensure business

clearances/negotiation memorandums requiring Echelon II approval are reviewed at an

appropriate level prior to being forwarded to the Echelon II Division Director.

(f) In no case shall an approving official approve a business clearance or negotiation

memorandum for which he/she acted as the source selection authority.

1.691 (NMCARS) Procurement management oversight.

1.691-2 Responsibilities.

1.691-2-100 NAVFAC Procurement Management Assessment Program (PMAP).

(a) The HCA is responsible for performing management and oversight reviews of all

procurement operations performed within Headquarters, any subordinate contracting

organization with delegated procurement authority, and any other commands delegated

contracting authority under NAVFAC’s cognizance. This process is implemented

through the NAVFAC PMAP process and will ensure execution of authority is performed

according to law and regulation. The oversight process shall:

(1) Focus on organizational leadership, management and internal controls, and

regulatory compliance.

(2) Evaluate the implementation of procurement processes and management

systems.

(3) Provide a feedback system from the NAVFAC Assistant Commander for

Acquisition/Deputy Director for Acquisition to NAVFAC acquisition organizations that

offer timely information to all organizational levels. Accompanying the PMAP report is a

plan of action and milestone (POA&M) template that is standardized and shall be used

by the activity to address the action items outlined in the report. The POA&M shall be

submitted for CCO approval with a copy to the PMAP team.

(b) NAVFAC PMAP on-site visits shall be scheduled and conducted based on the

following considerations: DASN Procurement Performance Management Assessment

Program (PPMAP) periodicity requirements, HQ Acquisition input, Echelon III and IV

CCO input, and other indicators.

1.691-2-101 Internal Business Assessment.

Each contracting organization within NAVFAC shall perform and document an

annual Internal Business Assessment (IBA) to self-assess the quality of the procurement

organization’s operations and processes. The self-assessment is intended to identify

and correct critical vulnerabilities. No less than five percent of all contract actions over

the past fiscal year for every product/service line shall be reviewed. Additional reviews

shall be conducted if multiple issues are revealed. The IBA shall be submitted to the

Echelon IV CCO, Echelon III CCO, or Assistant Commander for Acquisition/Deputy

Director for Acquisition as appropriate for analysis.

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31 Jan FEADs/ROICCs Echelon IV CCO

15 Feb Echelon IV CCO Echelon III CCO

15 Feb Echelon III CCO Echelon II Asst CDR for Acquisition/

Deputy Director for Acquisition

The Echelon shall perform a detailed analysis and send to the subordinate activity by

15 March. The IBA file shall be uploaded to the NAVFAC PMAP Program Director by 20

March of each calendar year.

Note: An activity receiving a PMAP rating of Satisfactory or Highly Satisfactory will not

be required to complete an IBA in the following Fiscal Year. Additionally, based on a

reduction in procurement risk, an activity receiving a “Highly Satisfactory” PMAP rating

will be automatically granted a waiver to the annual IBA submission requirement for the

second Fiscal Year following the PMAP review.

SUBPART 1.7—DETERMINATIONS AND FINDINGS

1.707 Signatory authority.

All Determinations and Findings (D&Fs) forwarded to the appropriate Echelon II

Division Director for approval shall contain an endorsement by the Echelon III CCO or

00/09. In addition, D&Fs that require approval above Echelon II (i.e., DASN) shall be

routed via the Echelon II Division Director for review and endorsement.

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PART 2

DEFINITIONS OF WORDS AND TERMS

SUBPART 2.1—DEFINITIONS

2.101 Definitions.

00 – Commander and Staff

09 – Vice Commander

BASE OPERATIONS SUPPORT (BOS) – A BOS contract (excludes multiple award

contracts) is defined as including a Performance Work Statement with FSC/BOS

annexes/sub-annexes from two or more of the technical annexes listed below:

- Command and Staff

- Public Safety

- Air Operations

- Port Operations

- Operations Support (Supply)

- Fleet and Family Readiness (Family Support Services)

- Fleet and Family Readiness (MWR)

- Fleet and Family Readiness (Galley)

- Fleet and Family Readiness (Housing)

- Facility Support (Facility Management, Facility Investment, and Facility Services)

- Facility Support (Utilities)

- Facility Support (Base Support Vehicles and Equipment)

- Environmental

BUSINESS LINE COORDINATOR (BLC) – The business line head at Echelon IV

activities.

BUSINESS LINE MANAGER (BLM) – The business line head at Echelon III activities.

CHIEF OF THE CONTRACTING OFFICE (CCO) - The Contracts Director at Echelon

III/IV activities only.

FACILITIES ENGINEERING COMMAND (FEC) - Echelon IV component command that

is subordinate to NAVFAC Atlantic or NAVFAC Pacific.

FACILITIES ENGINEERING AND ACQUISITION DIVISION (FEAD) - Division within the

Public Works Department that provides engineering support, construction project

management, and service contract management for the installation and other supported

commands.

HEAD OF THE CONTRACTING ACTIVITY (HCA) - For NAVFACENGCOM, the

Commander, NAVFACENGCOM and by delegation per FAR 1.108(b), the NAVFAC

Assistant Commander for Acquisition.

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NAVFAC COUNSEL - A member of NAVFAC Office of General Counsel (OGC) located

at an activity with contracting authority.

RESIDENT OFFICER IN CHARGE OF CONSTRUCTION (ROICC) - A Civil Engineer

Corps officer who is responsible for the administration of assigned contracts at a field

contracts office.

PART 3

IMPROPER BUSINESS PRACTICES AND PERSONAL CONFLICTS OF INTEREST

(RESERVED)

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PART 4

ADMINISTRATIVE MATTERS

SUBPART 4.6—CONTRACT REPORTING

4.604 (NMCARS) Responsibilities.

(3)(i) The data Verification and Validation (V&V) Report is required to be submitted

quarterly. Echelon III activities shall consolidate the information for its area of

responsibility (AOR) and submit a report at the end of the month following the end of

each fiscal quarter (1 February, 1 May, 1 August, 1 November), via e-mail to the Echelon

II People, Process and Policy Director.

(ii) By 1 November of each year, Echelon III activities shall submit the Contract

Action Report, Data Verification and Validation (V&V) certification for its AOR to the

Echelon II People, Process and Policy Director. NFAS Appendix A summarizes all

reporting requirements.

SUBPART 4.8—GOVERNMENT CONTRACT FILES

4.804 Closeout of contract files.

4.804-1 (NMCARS) Closeout by the office administering the contract.

(S-90) Echelon II eACQ Director shall submit the Monthly Contract Closeout Metric

Report to Deputy Assistant Secretary of the Navy for Acquisition and Procurement

(DASN(AP)) by the 15

of each month. NFAS Appendix A summarizes all reporting

requirements.

4.804-5 Procedures for closing out contract files.

See NFAS 32.1100(e) for closeout procedures for construction and architect-

engineer (A-E) contracts when contractor fails to execute an appropriate release within

one year after completion and acceptance.

4.805 Storage, handling and disposal of contract files.

Contracting offices shall maintain paper copies of official contract files. Large

documents may be stored on compact discs (CD) and kept in official contract files only if

they are in a readable format. Some examples of readable formats are (but not limited

to): .pdf, .doc, .xls; pst files are not acceptable for CD storage in official contract files.

Any contract documents filed in approved government electronic systems (e.g. WAWF,

Joint Appointment Module (JAM), Surveillance and Performance Monitoring module

(SPM), SeaPort-NXG, eCMS), shall be duly noted in the Contract Record Index of the

official contract file.

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PART 5

PUBLICIZING CONTRACT ACTIONS

SUBPART 5.2—SYNOPSES OF PROPOSED CONTRACT ACTIONS

5.205 Special situations.

(d) Architect-engineering (A-E) services.

(1) All unrestricted synopses for A-E services over $700,000 shall include a

notice that any large firm that is short-listed will be required to submit a subcontracting

plan (in addition to addressing the small business criteria in the SF-330) before price

negotiations begin for contract award.

(2) Each synopsis of A-E contracts must be concluded with the statement:

“Architect-engineer firms which meet the requirements described in this

announcement are invited to submit a completed SF-330 to the office shown

below. Firms responding to this announcement by (date/time) local time will

be considered. This is not a request for a proposal."

(3) When a synopsis is not required, the publicly displayed notice should include

the statement:

"Architect-engineer firms which meet the requirement described in this

announcement are invited to submit completed SF-330. Firms responding

to this announcement by (date/time) will be considered. This is not a request

for proposal."

5.207 Preparation and transmittal of synopses.

(a) All unrestricted synopses over $700,000 for services and $1,500,000 for

construction shall include a notice to large firms that a subcontracting plan is required

prior to award.

(b) All set-aside, 8(a) competitive, sources sought, and potential set-aside synopses

must include the North American Industry Classification System (NAICS) Code and size

standard.

SUBPART 5.4—RELEASE OF INFORMATION

5.404 (NMCARS) Release of long-range acquisition forecasts.

By 10 June of each year, Echelon III activities shall submit an annual Long Range

Acquisition Forecast Report for its area of responsibility (AOR) to the Echelon II People,

Process and Policy Director. NFAS Appendix A summarizes all reporting requirements.

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SUBPART 5.5—PAID ADVERTISEMENTS

5.502 (DFARS) Authority.

An Echelon III/ IV Chief of the Contracting Office (CCO), without power of

redelegation, may approve paid advertising in newspapers.

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PART 6

COMPETITION REQUIREMENTS

SUBPART 6.2—FULL AND OPEN COMPETITION AFTER EXCLUSION OF

SOURCES

6.202 (NMCARS) Establishing or maintaining alternative sources.

(b)(1)(i) Approval of the determination to exclude a source for actions not exceeding

$93M:

(A) can be submitted for Echelon III Commander/Commanding Officer approval

(when the Echelon III Commander/Commanding Officer is a general or flag

officer) via the Echelon III or IV Chief of the Contracting Office (CCO). A copy of

any approved D&F shall be provided to the Echelon II Division Director; or,

(B) can be submitted for the Assistant Commander for Acquisition approval via

Echelon III or IV CCO and the Echelon II Division Director.

(b)(1)(ii) Approval of the determination to exclude a source for actions over $93M, must

be submitted with a copy of the approved Streamlined Acquisition Plan (STRAP) or

Management and Oversight Process for the Acquisition of Services – Streamlined

(MOPAS-S) via Deputy Assistant Secretary of the Navy for Acquisition and Procurement

(DASN(AP)) for approval by the Navy Senior Procurement Executive (NSPE) via the

Echelon III or IV CCO and the Assistant Commander for Acquisition via the Echelon II

Division Director.

SUBPART 6.3—OTHER THAN FULL AND OPEN COMPETITION

6.303-1-100 Bridge contract actions.

Refer to NFAS 6.304-101 for bridge contract action Justification and Approval (J&A)

requirements, content, approval, and reporting.

6.304 Approval of the justification.

(a) A warranted Contracting Officer, acting within the limits of their delegated

authority, may approve the justification for proposed contract actions not exceeding

$700,000. Echelon III Commander/Commanding Officer/CCO/Echelon IV Commanding

Officer/CCO may delegate approval authority to a warranted Contracting Officer for

proposed contract actions not exceeding $700,000. The Echelon III

Commander/Commanding Officer/Echelon IV Commanding Officer shall establish

internal management controls to ensure proper use of the delegated authority and

compliance with legal reviews (see NFAS 1.602-1-100).

(b) For a proposed contract action over $700,000 but not exceeding $7,000,000, the

justification shall be approved by the Echelon III Commander/Commanding

Officer/Echelon IV Commanding Officer.

justification shall be approved by the Echelon III Commander/Commanding Officer.

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(d) All justifications over $13.5M but not exceeding $93M shall be forwarded via the

Echelon III CCO and the appropriate Echelon II Division Director for approval by the

Assistant Commander for Acquisition.

(e) All justifications exceeding $93M shall be forwarded via the Echelon III CCO and

the appropriate Echelon II Division Director, for endorsement by the Assistant

Commander for Acquisition for submission to Assistant Secretary of the Navy

(Research, Development and Acquisition) (ASN(RD&A) for approval.

6.304-100 Requirements for limiting competition under MAC task orders.

(a) The written justification to waive or limit competition for task orders under MACs

and FSSs shall be obtained prior to release of a request for proposal.

(b) Approval thresholds for the required written justification are as follows:

(1) For a proposed task order up to and including $700,000, the justification shall

be approved by a Level III Contracting Officer. The Contracting Officer shall ensure that

the justification is accurate and complete to the best of their knowledge and belief.

(2) For a proposed task order over $700,000 but not exceeding $7,000,000, the

justification shall be approved by the Echelon III Commander/Commanding

Officer/Echelon IV Commanding Officer.

(3) For a proposed task order over $7,000,000 but not exceeding $13.5M, the

justification shall be approved by the Echelon III Commander/Commanding Officer.

(4) For a proposed task order over $13.5M but not exceeding $93M, the

justification shall be forwarded via the Echelon III CCO and the appropriate Echelon II

Division Director for approval by the Assistant Commander for Acquisition.

(5) For a proposed task order exceeding $93M, the justification shall be

forwarded via the Echelon III CCO and the appropriate Echelon II Division Director for

endorsement by the Assistant Commander for Acquisition for submission to ASN(RD&A)

for approval.

6.304-101 Bridge contract action approvals

(a) Bridge contract actions are defined as non-competitive contracts awarded to

“bridge” the time between the end of one contract and the beginning of another related

contract. Contract modifications executed in accordance with FAR 52.217-8 - Option to

Extend Services, are considered bridge contract actions if the approved Streamlined

Acquisition Plan (STRAP) or Management and Oversight Process for the Acquisition of

Services – Streamlined (MOPAS-S) did not include the use of the clause, pricing was

not obtained for the additional six (6) months and the option period was not evaluated as

part of the initial contract competition.

(b) To reduce reliance on bridge contracts and promote real competition, in addition

to the J&A for a non-competitive requirement, the program manager/requirement owner

shall prepare a separate request for authorization to award a bridge contract. This

determination shall address the rationale for use of a bridge contract, certify to the

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urgency of the requirement and be signed by both the program manager/requirement

owner and the Contracting Officer. As required by NMCARS 5206.303-1(S-90), use the

template at Annex 5 of NMCARS entitled, “Bridge Contract Approval and Reporting,” to

request authorization to award a bridge contract. For purposes of this guidance, the

term "Business Line" is inclusive of Support Line and Functional Area requirement

owners.

(1) For contract actions up to and including $700,000, the authorization shall be

approved by the Business Line Coordinator (BLC) (for Echelon IV) or Business Line

Manager (BLM) (for Echelon III), and by the Echelon III/IV CCO.

(2) For contract actions over $700,000 but not exceeding $5,500,000 and/or a

period of performance greater than 6 months, the authorization shall be approved by the

requirements Business Line Leader and the Assistant Commander for Acquisition or by

delegation, the Deputy Director for Acquisition.

(3) For contract actions greater than $5,500,000 and/or period of performance is

for subsequent period (2nd, 3rd, etc. bridge) the authorization shall be approved by the

Business Line Leader and the Head of the Contracting Activity (HCA). Any authorization

for a subsequent bridge contract shall include an explanation of why the competitive

timeline on the previous bridge request was not achieved.

(d) All bridge contract actions are required to be reported quarterly. Echelon III

activities shall consolidate the information for its area of responsibility (AOR) and submit

a report on the 15th day of the month following the end of each fiscal quarter (15

January, 15 April, 15 July, 15 October), via e-mail to the Echelon II People, Process and

Policy Director.

(e) J&As for bridge contracts shall not be submitted for review and/or approval before

the bridge contract authorization is approved for inclusion in the J&A package. After the

bridge contract authorization is obtained, the J&A will be routed to the appropriate

approval level for review and approval per NFAS 6.304. Bridge J&As will also include a

schedule for award of follow-on competition within Section 8 "Actions to Remove

Barriers to Competition."

(f) If the bridge action is for Engineering Services (not those procured under the

Selection of Architects and Engineers statute) and/or Program Management Services

(see NMCARS Annex 22) and it does not qualify for an exception at NMCARS 5237.102;

SeaPort is not being used; and the Bridge J&A will not cite FAR 6.302-2 the following

applies (see subparagraph (3)(a) for actions citing FAR 6.302-2):

(1) The Bridge J&A shall be approved by the appropriate competition

advocate (see NFAS 6.501);

(2) A copy of the approved Bridge J&A shall be submitted, via the

appropriate Echelon II Division Director to DASN(AP); and

2018 Edition, through Change 1 issued 02 August 2019

(3) A request for proposal or solicitation for the requirement shall NOT

be issued earlier than three working days after the Bridge J&A is

provided to DASN(AP).

a. If the bridge J&A cites FAR 6.302-2: A copy of the approved

Bridge J&A shall be submitted via the appropriate Echelon II

Division Director to DASN(AP) within two working days from

approval and there is no requirement to delay request for

proposal or solicitation issuance.

SUBPART 6.4—SEALED BIDDING AND COMPETITIVE PROPOSALS

6.401 Sealed bidding and competitive proposals.

(b) Document the determination to use other than sealed bidding procedures in the

STRAP, MOPAS-S or separate memorandum.

SUBPART 6.5—COMPETITION ADVOCATES

6.501 Requirement.

The Assistant Commander for Acquisition and the Echelon III/IV

Commander/Commanding Officer are designated Competition Advocates. In the event

that the Competition Advocate has a conflict of interest due to Source Selection

Authority (SSA) duties, the Assistant Commander for Acquisition will serve as the

Competition Advocate.

6.502 (NMCARS) Duties and responsibilities.

(b)(2) Echelon IIIs shall submit an annual report of competition advocate activities over

the preceding year, including a projected competition goal for the current year to the

Echelon II People, Process and Policy Director for their area of responsibility (AOR) by

15 December. NFAS Appendix A summarizes all reporting requirements.

2018 Edition, through Change 1 issued 02 August 2019

PART 7

ACQUISITION PLANNING

SUBPART 7.1—ACQUISITION PLANS

7.102 Policy.

(a) Contracting Officers shall assure adequate acquisition planning including market

research is performed consistent with the character and risks associated with the

procurement of each requirement prior to issuing solicitations.

7.103 (NMCARS) Agency-head responsibilities.

(d) Streamlined Acquisition Plans (STRAPs) are required for the categories of

acquisitions (which notably includes military construction, commercial items, and

architect-engineer (A-E)) listed in NMCARS 5207.103(d)(ii) meeting the thresholds in

DFARS 207.103(d)(i) (refer to NMCARS Table 5207-1 – STRAP/MOPAS-S

Requirements and Approvals). Note: STRAPs are required for task and delivery orders

where the value for the order requires a STRAP.

(1) Acquisitions for Development, as defined in FAR 35.001, when the total cost

of all contracts for the Acquisition program is estimated at $10M or more.

(2) Acquisitions for Production when the total cost of all contracts for the

acquisition program is estimated at $50M or more for all years or $25M or more for any

fiscal year.

(3) Acquisitions for Production with Services over the simplified acquisition

threshold (SAT) when the total cost of all contracts for the acquisition program is

estimated at $50M or more for all years or $25M or more for any fiscal year.

(4) Acquisitions for Services (which may include but is not limited to acquisitions

for military construction, major station maintenance/repair, A-E, and commercial

services), when the total cost of all contracts for the acquisition is estimated at $50M or

more for all years or $25M or more for any fiscal year.

(5) Acquisitions for Services (which may include but is not limited to A-E,

commercial services, base operations support (BOS) or facility support services such as

custodial, equipment maintenance and repair, guard services, etc.,) when the total cost

is estimated at $50M or more for all years or $25M or more for any fiscal year. Note:

Acquisitions for services over the SAT but less than $50M shall use the Management

and Oversight Process for the Acquisition of Services – Streamlined (MOPAS-S) (see

NFAS 37.504) unless any fiscal year is $25M or more, than a STRAP is required.

(6) Acquisitions for Services through use of a contract or task order issued by a

non-DoD agency when the total cost is $50M or more. Refer to NMCARS 5237.170 and

NFAS 17.502 for additional approval requirements.

(e) With the exception of Acquisitions for Services greater than $50M procured

through use of a contract or task order issued by a non-DoD agency which requires

2018 Edition, through Change 1 issued 02 August 2019

approval by the Navy Senior Services Manager (SSM), Streamlined Acquisition Plans

(STRAPs) shall be approved as follows:

APPROVAL REQUIREMENTS FOR STRAPs

Total Planned

Dollar Value

Requirements

Review

Acquisition Plan

Review

Decision

Authority/Approval

$10M up to and including

$100M (all years)*

Requiring

Activity

Contracting Officer a

level above the

Contract Specialist

Echelon III/IV

Division Director

>$100M up to and including

$250M (all years)

Requiring

Activity

Echelon III/IV Chief

of the Contracting

Office (CCO)**

Echelon II Division

Director

For EXWC ONLY: >$100M

up to and including $250M

(all years) [as authorized

under FY17 NDAA Section

233]

Requiring

Activity

Contracting Officer a

level above the

Contract Specialist

NAVFAC EXWC

CCO

> $250M

Requiring

Activity

Asst CDR for

ACQ***

Deputy Assistant

Secretary of the

Navy (Acquisition

and Procurement

(DASN(AP)) or SSM

*Note: With the exception of acquisitions for development which require a

STRAP for acquisitions of $10M or more, acquisitions greater than SAT but less than

$50M for all years, still require acquisition planning and must be documented using

NMCARS Annex 21, MOPAS-S. However, acquisitions for construction services less

than $25M in a fiscal year or less than $50M for all years shall not use MOPAS-S and

the acquisition development plan template included in BMS is recommended for use.

For NAVFAC EXWC ONLY: Actions under $2,000,000 (including task or delivery

orders) may utilize the acquisition development plan in NAVFAC BMS in lieu of

NMCARS Annex 21, MOPAS-S as authorized under FY2017 NDAA Section 233 Pilot

Program for the Enhancement of the Research, Development, Test and Evaluation

Centers, Phase II, Sprint 1 (Section 233).

**STRAP documents submitted by Echelon IV to Echelon II do not require

review/approval by Echelon III.

***STRAP documents submitted for approval by DASN(AP)/SSM must be

submitted via the Echelon III or IV CCO, the appropriate Echelon II Division Director, and

the Associate Director for Small Business. The Echelon II Division Director will

coordinate the review by the Associate Director for Small Business.

(f) Use NMCARS Annex 20, ISTRAP-M, for all acquisitions $25M or more in a fiscal

year or $50M or more for all years unless preparing on a programmatic basis then use

NMCARS Annex 19 PSTRAP-M.

2018 Edition, through Change 1 issued 02 August 2019

7.105 Contents of written acquisition plans.

Acquisition plans shall include the information required by FAR 7.105 and DFARS

207.105. STRAPs and MOPAS-S shall be prepared using the appropriate mandatory

templates included in NMCARS. Any changes to the templates outside of the signature

page must be approved by the Head of Contracting Activity (HCA), without power of

delegation.

7.107 (NMCARS) Additional requirements for acquisitions involving consolidation,

bundling, or substantial bundling.

7.107-2 (NMCARS) Consolidation.

(e)(2)(i) Approval of the determination that use of a consolidated contract is necessary

and justified:

(A) For actions at or above $50M, must be submitted for approval by DASN(AP)

with a copy of the approved STRAP or MOPAS-S via the Echelon III or IV

CCO and the Assistant Commander for Acquisition via the Echelon II Division

Director.

a. For NAVFAC EXWC ONLY: As authorized under FY2017 NDAA

Section 233 Pilot Program for the Enhancement of the Research,

Development, Test and Evaluation Centers, Phase II, Sprint 1

(Section 233), for actions greater than $50M and less than $100M, the

determination must be submitted for Head of the Contracting Activity

(HCA) approval via the Echelon III CCO, the Echelon II Division

Director, and the Assistant Commander for Acquisition.

(B) For actions exceeding $13.5M but less than $50M, the determination must be

submitted for Assistant Commander for Acquisition approval via the Echelon

III or IV CCO and the Echelon II Division Director.

must be submitted for Echelon III or Echelon IV Commander/Commanding

Officer approval via the Echelon III or IV CCO.

a. For NAVFAC EXWC ONLY: As authorized under FY2017 NDAA

Section 233 Pilot Program for the Enhancement of the Research,

Development, Test and Evaluation Centers, Phase II, Sprint 1

(Section 233), for actions greater than $2,000,000 and up to $50M,

the determination must be submitted for NAVFAC EXWC

Commanding Officer approval via the Echelon III CCO.

7.107-3 (NMCARS) Bundling.

(f)(2)(i) Approval of the determination that use of a consolidated and bundled contract is

necessary and justified must be submitted with a copy of the approved STRAP or

MOPAS-S for approval by DASN(AP) via the Echelon III or IV CCO and the Assistant

Commander for Acquisition via the Echelon II Division Director.

2018 Edition, through Change 1 issued 02 August 2019

SUBPART 7.4—EQUIPMENT LEASE OR PURCHASE

7.470 (DFARS) Statutory requirements.

Only the HCA is authorized to make a determination to enter into, extend or renew

any vessel, aircraft, or vehicle lease, charter or similar agreement with individual

performance periods of 18 months or more. The determination and findings shall be

reviewed by Legal Counsel, endorsed by the Echelon III CCO, and forwarded to the

appropriate Echelon II Division Director for approval by the HCA. A contract for vehicle

leasing containing lease terms of 12 months or less per performance period is not

subject to this requirement, e.g., a contract with a 6-month lease for the base period and

a 12-month lease for each of two option periods.

2018 Edition, through Change 1 issued 02 August 2019

PART 8

REQUIRED SOURCES OF SUPPLIES AND SERVICES

SUBPART 8.4—FEDERAL SUPPLY SCHEDULES

8.404 Use of Federal Supply Schedules (FSS).

(k) With written approval of a Contracting Officer a level above the individual

assigned the action, use of FSS is permitted only for direct acquisitions for services

including knowledge based services, roofing repairs, and leases at or below the

simplified acquisition threshold (SAT) but above the micro-purchase threshold, or for

commercial off-the-shelf (COTS) items up to and including $7,000,000 when:

(1) Funds will not be transferred outside of NAVFAC;

(2) The requirement shall not be for architect-engineer (A-E), construction

(except those for roofing repairs), or recurring facilities support services (such as Base

Operations Support (BOS), custodial, preventive maintenance of equipment, etc.);

(3) Other mandatory sources cannot be used; and

(4) Blanket purchase agreements against the schedules will not be established

for non-personal services.

Note: If procuring services greater than $2,500; ensure that wage

determination(s) are included if applicable.

Note: For Orders above the SAT; ensure compliance with FAR 8.405-4.

Note: For Orders above $550,000; ensure compliance with

FAR/DFARS/NMCARS at Subparts 17.5 and 17.7 (as applicable).

Note: Services can be procured with FSS when they cannot be procured as

efficiently through an existing NAVFAC awarded contract. Examples of the types of

services procured through FSS contracts, subject to the limitations above, are

shredding, bus rentals, leases/rental of equipment, furniture, trailer rentals, equipment

repair or maintenance, vehicle purchases, venue rentals (e.g. office space, meeting

hall), etc.

(l) For information technology (IT) development and support services, the following

order of precedence must be used:

(1) NAVFAC internal contracts (for new contracts, comply with Apr 23 2012 DoN

Policy for the Procurement of Information Technology (IT) Development and Support

Services).

(2) GSA Alliant//Alliant Small Business, DISA Encore II, Army ITES-2S, Air Force

NETCENTS, NIH GWAC, or SeaPort-NXG.

2018 Edition, through Change 1 issued 02 August 2019

(m) For information technology (IT) acquisitions of software, the following order of

precedence must be used:

(1) NAVFAC internal contracts.

(2) DoD Enterprise License Agreement (ELA), SmartBUY and DoD Enterprise

Software Agreements (DoD ESI/ESA) (reference Feb 22 2012 DoN memorandum

Mandatory Use of Department of the Navy Enterprise Licensing Agreements).

Note: Per NFAS 39.101(a), only Naval Facilities Engineering and Expeditionary

Warfare Center (EXWC) has unlimited authority to procure IT resources.

(n) FSS should be used only if there is an expectation of competition unless the

limited source is justified. Additionally, although FSS do not require mandatory

preference programs, NAVFAC orders shall use small business set-asides to the

maximum extent possible.

8.405-6 (NMCARS) Limiting Sources.

No solicitation for Engineering Services (not those procured under the Selection of

Architects and Engineers statute) and/or Program Management Services (see NMCARS

Annex 22), which negates the use of SeaPort shall be issued earlier than three working

days after the limited sources justification is provided to DASN(AP). The limited sources

justification shall:

(1) Be approved by the appropriate competition advocate (see NFAS 6.501);

(2) A copy of the approved limited sources justification shall be submitted; via the

appropriate Echelon II Division Director to DASN(AP).

a. If the limited sources justification cites FAR 8.405-6(a)(1)(i)(A): A copy of

the approved limited sources justification shall be submitted via the

appropriate Echelon II Division Director to DASN(AP) within two working

days from approval and there is no requirement to delay solicitation

issuance.

SUBPART 8.70—(DFARS) COORDINATED ACQUISITION

8.7003 Applicability.

8.7003-1 Assignments under integrated materiel management (IMM).

NAVFAC Contracting Officers are not normally authorized to purchase automotive

vehicles, construction equipment, and weight handling equipment or other material

handling equipment. However, special authority using the DFARS procedures at this

subpart. All requests must be coordinated with the responsible Echelon III

Transportation Product Line Management Office, and submitted to EXWC as NAVFAC’s

execution agent for Civil Engineering Support Equipment (CESE). For NAVFAC

OCONUS activities, the approval authority is delegated to the Echelon III Chief of the

Contracting Office (CCO). In the CCO’s absence, this authority may be redelegated no

lower than the Acting Echelon III CCO.

2018 Edition, through Change 1 issued 02 August 2019

PART 9

CONTRACTOR QUALIFICATIONS

SUBPART 9.1—RESPONSIBLE PROSPECTIVE CONTRACTORS

9.104-5 Certification regarding responsibility matters.

Procuring Contracting Officers/Chief of the Contracting Office (PCOs/CCOs) shall

notify the cognizant Echelon II Division Director on issues relevant to both FAR 9.104-

5(a)(2) and FAR 9.104-5(b)(2). For issues relevant to FAR 9.104-5(a)(2), the PCO/CCO

shall also provide a recommendation if the offeror is being considered for award. The

Echelon II Division Director/Head of Contracting Activity (HCA) shall determine the

appropriate course of action.

SUBPART 9.5—ORGANIZATIONAL AND CONSULTANT CONFLICTS OF INTEREST

9.506 Procedures

(b) Requests for approval, as required by FAR 9.506, of a recommended course of

action (which may include proposed provisions or draft contract clauses) to avoid,

neutralize or mitigate a potential organizational conflict of interest shall be submitted via

the Echelon III or IV CCO to the appropriate Echelon II Division Director. Such requests

must be approved prior to issuance of any solicitation.

9.507 [Removed and Reserved]

9.507-2 [Removed and Reserved]

2018 Edition, through Change 1 issued 02 August 2019

PART 10

MARKET RESEARCH

10.001 Policy

Market research is a basic precursor to solid acquisition planning. Failure to conduct

market research in a timely manner is not a valid justification in attempting to limit

competition later on. Contracting Officers are encouraged to conduct market research at

the earliest possible time.

2018 Edition, through Change 1 issued 02 August 2019

PART 11

DESCRIBING AGENCY NEEDS

11.002 Policy.

Specifications for a contract to be performed in a foreign country and may be

prepared both in English and in the appropriate foreign language as necessary.

SUBPART 11.1—SELECTING AND DEVELOPING REQUIREMENTS DOCUMENTS

11.104 [Removed and Reserved]

11.105-100 Proprietary specifications.

(a) Proprietary specifications shall not be included in NAVFAC contracts unless a

Justification and Approval (J&A) is prepared and approved in accordance with FAR Part

6 before solicitation advertisement. The J&A approval level shall be dictated by the

estimated value of the proprietary products. This requirement also applies to

specifications prepared by other agencies for projects to be constructed by NAVFAC.

(b) When authorized, the brand name justification or documentation shall be

publicized with the solicitation. The posting requirement applies to acquisitions

exceeding $25,000 that uses brand name specifications, including simplified acquisitions

and sole source procurements. If publication of the justification or documentation with

the solicitation or the Request for Quotation (RFQ) is inappropriate because of one of

the exceptions in FAR 5.102(a)(4) applies, a copy of the justification shall be kept in the

contract file. The technical specification shall state: “Notwithstanding any other provision

of this contract, no other product will be acceptable.”

11.106 (DFARS) Purchase descriptions for service contracts.

Purchase descriptions for service contracts and resulting requirements documents

(e.g., Statements of Work/Performance Work Statements (SOW/PWS) shall include

language to provide a clear distinction between Government employees and contractor

employees as required by DFARS 211.106.

SUBPART 11.2—USING AND MAINTAINING REQUIREMENTS DOCUMENTS

11.201 Identification and availability of specifications.

11.201-100 Construction contract drawings and specifications.

Technical portions of specifications shall not include issues covered by FAR,

DFARS, NMCARS or NFAS clauses, provisions, or exceptions thereto.

11.201-101 Collateral equipment.

If collateral equipment is included in specifications, the matter should be coordinated

with and approved by the contracting agency normally responsible for procuring the

collateral equipment.

2018 Edition, through Change 1 issued 02 August 2019

SUBPART 11.4—DELIVERY OR PERFORMANCE SCHEDULES

11.402 Factors to consider in establishing schedules.

(b) Construction.

(1) When establishing a completion date for construction contracts requiring

performance and/or payment guarantees, a period of 15 days shall be allowed for the

mailing of the award and the contractor's submission of the required guarantee.

(2) Time extensions shall not be deferred until completion of work.

(3) Options – see NFAS 17.202-100.

11.404-100 NAVFAC solicitation/contract language, Phased Construction

Schedule.

Use the following NAVFAC language entitled “Phased Construction Schedule” in all

solicitations/contracts for construction that require the use of a phased construction

schedule. The NAVFAC language should be used with FAR Clause 52.211-12,

Liquidated Damages—Construction. The language should be included in Division 00800

of solicitations using the undated Construction Specifications Institute (CSI) format

available in the Standard Procurement System (SPS) or, if using the CSI 2012 format,

include the language in Division 00 73 00.

PHASED CONSTRUCTION SCHEDULE

Within the overall project schedule, commence and complete the work in phases.

Complete each phase of the work within the number of days stated in the following

schedule:

a. Schedule start day: The day designated as the beginning of a particular phase; the

number listed is the number of days from the award of contract.

b. Completion day: The day designated as the end of a given phase and the day the

work in that phase must be completed; the number listed is the number of days from the

award of the contract.

c. Schedule:

Phase

Description

Schedule Start Day

Completion Day

[________]

[______]

[________]

[______]

[________]

Completion of

remaining

[______]

[________]

[Contracting Officer to insert start and completion day for each phase. The completion

day of the last phase must be the same number as indicated in FAR 52.211-10,

Commencement, Prosecution, and Completion of Work.]

2018 Edition, through Change 1 issued 02 August 2019

d. If the work of a particular phase is complete and accepted before the scheduled

completion day, immediately begin work on the subsequent phase unless otherwise

restricted.

(End of NAVFAC language)

SUBPART 11.5—LIQUIDATED DAMAGES

11.502 Procedures.

(a) The appropriate liquidated damage rate(s) shown in the following tables shall be

included in all firm fixed-price construction solicitations and contracts exceeding the

simplified acquisition threshold. These rates may be included in contracts below the

simplified acquisition threshold (SAT) at the discretion of the Contracting Officer.

Liquidated damages rates are calculated based upon the independent Government

estimate (IGE) excluding Supervision, Inspection and Overhead (SIOH) and contingency

for the construction project; liquidated damages are not adjusted based upon the

contract award amount and the total calculated amount is not prorated.

(b) If multiple completion dates are specified, provide a liquidated damage rate for

each date. If multiple deliverables are specified, state a liquidated damage rate per day

per deliverable.

a Contracting Officer's written determination that the Government's anticipated loss from

delayed completion is less or greater than these amounts. Echelon III/IV Chief of the

Contracting Office (CCO) approval is required for liquidated damage rates exceeding a

50 percent increase or decrease of the rates in these tables. This authority may not be

re-delegated.

(d) The final invoice shall include either the statement: "The contract was completed

within the contract time and no liquidated damages are assessed," or be annotated to

show the contract completion date, the actual date of completion, the number of days for

which liquidated damages are assessed, the rate per day of liquidated damages and the

total amount of liquidated damages assessed by modification for late performance.

(e) Assessment of liquidated damages shall be through issuance of a unilateral

modification.

(f) The contractor shall be notified upon initial withholding of Contract Work Hours

and Safety Standards (CWHSS) liquidated damages and again upon the issuance of the

final order affirming the assessment of the CWHSS liquidated damages. Liquidated

damages for labor violations are assessed in accordance with DFARS 222.302.

2018 Edition, through Change 1 issued 02 August 2019

LIQUIDATED DAMAGES (LDs) TABLES

Table 1: General Construction Projects

Project Cost Estimated Liquidated Damages Per Day

$ 2,000 - 25,000

25,000 - 50,000

50,000 - 100,000

100,000 - 500,000

Each additional $100,000 - add $50*

*This amount is not pro-rated. Example – for all values

between $501,000 - $600,000, add $50.

$ 80

110

140

200

Table 2: Family Housing Units

Types of Units

Liquidated Damages Day Per Unit

GOQ (General Officers' Quarters)

SOQ (Senior Officers' Quarters)

FGO (Field Grade Officers)

CGO (Company Grade Officers)

SEM (Senior Enlisted Men)

JEM (Junior Enlisted Men)

Average daily Basic Allowance for Housing (BAH)

with dependents plus average applicable housing

allowances or temporary living allowance, as

appropriate.

Table 3: Bachelor Housing

Type of Housing Rate Per Day No. of Men Per Bldg.

Liquidated Damages

Day Per Bldg.

BOQ

BAH rate for single 03 for

area.

x ___________ = ________

BEQ

BAH rate for single E-5

for area.

x ___________ = ___________

Table 4: Storage Space

LDs Per Day Square Feet

LDs Per Square Foot

Per Day

$.15

x ___________ = ____________

2018 Edition, through Change 1 issued 02 August 2019

Table 5: Office Space

LDs Per Day Square Feet

LDs Per Square Foot

Per Day

$.30 x _____________ = _____________

SUBPART 11.6 – PRIORITIES AND ALLOCATIONS

11.602 Policy.

The Defense Priorities and Allocations System (DPAS) implements Title I of the

Defense Production Act of 1950 and authorizes the President to require the priority

performance of contracts and orders needed to promote the national defense. This

authority is delegated to the Department of Commerce (DOC) who ensures compliance

with DPAS regulations. The DOC has authorized the Department of Defense (DoD) to

apply priority ratings to contracts and orders that support the DoD-approved national

defense program categories in the DPAS Schedule 1 of the 15 CFR 700.

11.603 Background.

Priority ratings consist of a rating symbol and a program identification symbol

obtained from the 15 CFR 700 Schedule 1. Rating symbols are DX (reserved for highest

national defense urgency) and DO (reserved for program vital to the national defense).

The DX and DO Priority Rating Authority is delegated to Commander, Naval Supply

Systems Command by the Secretary of the Navy and is further delegated to

Commander, Naval Facilities Engineering Command. DPAS priority ratings are

assigned to DoD-approved Defense Programs. If a project or program is not an

approved Defense Program, an activity cannot assign a DPAS DX or DO priority rating.

11.604 Procedures.

(a) Procedures for implementing DoD DPAS are set forth in the Department of

Defense Priorities and Allocations Manual (DoD 4400.1-M) and the Department of

Commerce 15 CFR 700. The references can be found in full text at

http://www.dtic.mil/whs/directives.

(b) The authority to rate construction contracts at the DO level exists with the

Contracting Officer. All construction contracts are to be rated with DO-C2. Service

contracts are not included in DPAS and shall not be rated. The DPAS officer will be the

Echelon III/IV CCO. “NAVFAC Echelon II Acquisition Division Directors will function as

the DPAS Officer for those NAVFAC contract activities that do not report to an Echelon

III/IV CCO.” In the event NAVFAC contractors have a conflict between the NAVFAC DO

rated contract and one from another activity or agency and cannot meet both with the

DO ratings, the matter will be forwarded to the Assistant Commander for

Acquisition/Deputy Director for Acquisition via the Echelon II Acquisition Division Director

and Echelon III CCO.

2018 Edition, through Change 1 issued 02 August 2019

PART 12

ACQUISITION OF COMMERCIAL ITEMS

SUBPART 12.1 – ACQUISITION OF COMMERCIAL ITEMS – GENERAL

12.102 (NMCARS) Applicability.

(a)(i)(C) Deputy Assistant Secretary of the Navy for Acquisition and Procurement (DASN

(AP)) concurrence must be obtained on the determination that expert and consultant

services are commercial items. Determinations for concurrence must be submitted with

a copy of the approved Streamlined Acquisition Plan (STRAP) or Management and

Oversight Process for the Acquisition of Services – Streamlined (MOPAS-S) via the

Echelon III or IV Chief of the Contracting Office (CCO) and the Assistant Commander for

Acquisition via the Echelon II Division Director.

SUBPART 12.2 - SPECIAL REQUIREMENTS FOR THE ACQUISITION OF

COMMERCIAL ITEMS

12.207 (NMCARS) Contract type.

(b)(iii) The determination to use time-and-materials and labor-hour contracts for services

other than those identified in DFARS 212.207(b)(i) or (ii), must be submitted for approval

by DASN (AP). The determination must be submitted with a copy of the approved

STRAP or MOPAS-S via the Echelon III or IV CCO and the Assistant Commander for

Acquisition via the Echelon II Division Director.

SUBPART 12.70 – LIMITATION ON CONVERSION OF PROCUREMENT FROM

COMMERCIAL ACQUISITION PROCEDURES

12.7001 (NMCARS) Procedures.

(a)(2) A request for a Head of the Contracting Activity (HCA) determination to convert a

procurement valued at more than $1,000,000 but less than $100M from commercial

acquisition procedures must be submitted via the Echelon III or IV CCO, and the

Assistant Commander for Acquisition via Echelon II Division Director. In the case of a

procurement valued at more than $100M, award must be withheld until a copy of the

HCA determination to convert the procurement from commercial acquisition procedures

is provided to Defense Pricing and Contracting (DPC) via DASN(AP).

SUBPART 12.71 – PILOT PROGRAM FOR ACQUISITION OF MILITARY-PURPOSE

NONDEVELOPMENTAL ITEMS

12.7102-2 (NMCARS) Reporting requirements.

(a) Echelon III activities shall consolidate and submit an annual report identifying all

contracts awarded under the Pilot Program on Acquisition of Military-Purpose

Nondevelopmental Items to the Echelon II People, Process and Policy Director for their

area of responsibility (AOR) by 1 October. NFAS Appendix A summarizes all reporting

requirements.

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PART 13

SIMPLIFIED ACQUISITION PROCEDURES

13.003 Policy.

(a) Pursuant to NMCARS 5213.000, NAVSUP created the

DON Simplified Acquisition

Procedures (SAP) Guide to supplement existing policy for simplified acquisition

procedures.

SUBPART 13.2—ACTIONS AT OR BELOW THE MICRO-PURCHASE THRESHOLD

13.270 (DFARS) Use of the Government wide commercial purchase card (GCPC).

(a) All purchases for services and supplies below the micro-purchase threshold

(MPT) shall be acquired by the GCPC. Per FAR 2.101, the MPT is $10,000 with the

following exceptions:

(1) For the acquisition of services subject to the Service Contract Labor

Standards, the MPT is $2,500;

(2) For the acquisition of construction subject to the Wage Rate Requirements

(Construction), the MPT is $2,000;

(3) For acquisitions of services or supplies as determined by the head of the

agency, are to be used to support a contingency operation; or to facilitate defense

against or recovery from cyber, nuclear, biological, chemical, or radiological attack;

international disaster assistance, an emergency or major disaster as described in FAR

13.201(g)(1), except for construction subject to the Wage Rate Requirements

(Construction), the MPT follows: $20,000 for any contract to be awarded and performed,

or purchase to be made inside the U.S; and $30,000 for any contract to be awarded and

performed, or purchase to be made outside the U.S. Note that the Navy Consolidated

Card Program Management Division (CCPMD) must issue a Purchase Card

Administrative Notice prior to using the GCPC for contingency operations. Notification to

the Headquarter (HQ) GCPC Program Manager is required when exercising this

authority.

(b) For acquisitions of supplies and services acquired and performed outside the

United States that meet the conditions set forth in DFARS 213.301 the GCPC may be

used over the MPT up to $25,000, including construction procured using commercial

procedures (cardholders must be documented by a Certificate of Appointment (SF-

1402)). If using the GCPC for construction outside the United States, it is important to

note that FAR Part 36 and any related clauses cannot be included. The GCPC

CANNOT be utilized for construction above the MPT in the United States.

determination in accordance with DFARS 213.270(b)(1) prior to using purchase orders

or separate contracts for such micro-purchase actions. This authority may not be

redelegated within the Echelon III command. However, pursuant to DFARS subpart

213.270(b)(2), if an activity does not have a resident Flag Officer or SES member, the

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Echelon III Commander may delegate this authority to the senior local Echelon IV CEC

Officer. The NAVFAC EXWC Echelon III Commanding Officer may make the written

determination pursuant to DFARS subpart 213.270(b)(2).

(d) A written determination is not required when placing orders under existing

contracts such as delivery/task orders for indefinite quantity type contracts, purchases

under BPAs, or when issuing contracts or purchase orders that will be performed entirely

outside of any state, territory, or possession of the United States, the District of

Columbia, and the Commonwealth of Puerto Rico.

(e) The GCPC shall not be used for micro-purchases where contract terms and

conditions must be expressly written, or for items deemed prohibited by the Navy

CCPMD Purchase Card Instruction and/or CCPMD Deskguide, or otherwise prohibited

from the use of appropriated funds.

SUBPART 13.3 SIMPLIFIED ACQUISITION METHODS

13.301 (DFARS) Governmentwide Commercial Purchase Card

(a) For cardholders without a GCPC Warrant, the purchase card will be used for

the following categories:

(1) Micro-Purchase Requirements. The purchase card shall be used to buy

and/or pay for all requirements valued at or below the MPT (see FAR 2.101). Purchases

higher than the MPT are not authorized.

(2) The purchase card MAY be used as a method of payment in conjunction

with other contracting methods above the MPT provided appropriate authority has been

granted and is stated within the delegation letter.

(b) Cardholder authority to use the GCPC up to the MPT shall be documented in a

Letter of Delegation (LOD) specifying any limitations to supplies or services authorized

to purchase and spending limits. Cardholder authority must not exceed authority

delegated to the activity.

(1) The LOD shall also document authorized use and dollar limits for using the

GCPC above the MPT for:

(i) Payment for commercial training services authorized by an Authorization,

Agreement and Certification of Training Form (SF-182) up to $25,000, and/or

(ii) Payment to Defense Logistics Agency (DLA) Document Services below

$25,000, and/or

(iii) Use of the GCPC as a method of payment to pay for orders placed on a

contract by a warranted Contracting Officer or ordering officer up to their delegated

authority.

above, the purchase card:

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(1) Shall be used to place electronic delivery/task orders and modifications

above the MPT, but not exceeding the simplified acquisition threshold (SAT), against

IDIQ contracts with firm fixed price line items on FedMall.

(2) May be used by Fleet Logistics Center cardholders supporting NAVFAC, in

accordance with the MOA dated 21 July 2005, to place orders for supplies (material

buys) only against GSA Schedules above the MPT, but not exceeding the SAT, for firm

fixed price line items. Non pre-priced or firm fixed price line items require completion of

a GCPC Price Reasonableness Form as supporting documentation showing evidence of

three quotes and shall be reviewed/approved by the Approving Official in advance of the

purchase.

(3) GCPC warranted cardholders located outside the United States, as defined

by DFARS 213.301(1), may also make purchases that exceed the MPT but do not

exceed $25,000 if the purchase meets the criteria stated in DFARS 213.301(2). In

accordance with NAVSUPINST 4200.99

, cardholders located outside of the U.S. making

purchases using foreign currency must consider the daily exchange rate when making

purchases to ensure they are within their authorized spending limit, not-to-exceed

$25,000.

Note: Each purchase must be commensurate with the GCPC Warrant and

the appointment letter. The local contracting activity will provide internal procedures to

accomplish Federal Procurement Data System – Next Generation (FPDS-NG) reporting

requirements.

13.303 (DFARS) Blanket Purchase Agreements (BPAs).

(a) BPAs will be established in accordance with chapter 5 of DON SAP Guide

, and

should be used for non-complex, repetitive procurements that do not require a

Performance Work Statement or Statement of Work.

(b) BPAs for Architect-engineering (A-E) and Design-Build construction projects are

not authorized. See Subpart 36 for procurement of A-E and Design-Build construction

projects.

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PART 14

SEALED BIDDING

SUBPART 14.2—SOLICITATION OF BIDS

14.201 Preparation of invitations for bids.

14.201-100 Bid items.

(a) An alternate bid item is a bid item, which may be used in lieu of or as an

alternative to another bid item. Echelon III/IV Chief of the Contracting Office (CCO)

approval is required prior to the use of alternate bid items. This authority may not be

redelegated.

(b) Level III Contracting Officer approval is required for the use of a combination of

additive/deductive or other bidding systems in construction.

used (see NFAS 36.213-70).

(d) Level III Contracting Officer approval is required for use of the Estimated Total

Cost Method in construction contracts.

(e) If unit price bid items are used in construction contracts, FAR clause 52.211-18,

Variation in Estimated Quantities, must be included in the solicitation.

14.211 Release of acquisition information.

(a) All inquiries from prospective bidders regarding issued solicitations shall be

directed to the contracts office issuing the solicitation. The following statement shall be

included in every solicitation:

“All questions concerning this solicitation shall be addressed to (include

name, address and phone number).”

(b) The Contracting Officer will maintain a record of all inquiries, including the name

of the individual making the inquiry, questions asked and answers given or amendment

issued.

SUBPART 14.3—SUBMISSION OF BIDS

14.304 Submission, modification, and withdrawal of bids.

If a hand carried bid is presented after the bid opening official has declared that the

time for bid opening stated in the solicitation had arrived, the bid shall be received and

the time of receipt and name of the person delivering the bid noted on the bid envelope.

The bid shall be retained, unopened, until a determination to accept or reject the bid is

made by a level above the Contracting Officer after obtaining NAVFAC Counsel written

review comments.

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SUBPART 14.4—OPENING OF BIDS AND AWARD OF CONTRACT

14.402 Opening of bids.

14.402-1 Unclassified bids.

(a)(4) For construction contracts, after all the bids have been read, the independent

Government estimate (IGE) and the control amount, if applicable, shall then be read.

(b)(1) The contract specialist, Contracting Officer, and any other persons designated

in writing by the CCO for that purpose, is authorized to open bids.

14.404 Rejection of bids.

14.404-1 Cancellation of invitations after opening.

(a) A written determination by a level above the Contracting Officer is required prior

to converting an invitation for bids to a negotiated procurement.

(b) If an invitation for bids has been cancelled and converted to a negotiated

procurement, an amendment shall be issued to all responsible bidders stating the

authority for the action, the evaluation criteria, and include applicable clauses for

negotiated procurements.

14.405 Minor informalities or irregularities in bids.

NAVFAC Counsel written review comments are required prior to waiving

unacknowledged amendments.

SUBPART 14.5—TWO-STEP SEALED BIDDING

14.502 Conditions for use.

A Level III Contracting Officer approval is required prior to using the two-step sealed

bidding procurement method.

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PART 15

CONTRACTING BY NEGOTIATION

SUBPART 15.1—SOURCE SELECTION PROCESSES AND TECHNIQUES

15.101-2 Lowest price technically acceptable (LPTA) source selection process.

The number of proposals to be evaluated for technical acceptability may be limited to

the lowest priced offer at the discretion of the Contracting Officer. If the number of

proposals to be evaluated is limited, the technical proposal shall be provided to the

evaluator(s) without any identification of price. If the lowest priced proposal is not found

to be technically acceptable then the next lowest price proposal shall be evaluated. If

that proposal is also not found to be technically acceptable, then the process described

will be conducted again as many times as necessary, until such time as the Government

identifies a technically acceptable proposal. The source selection method must be

included in the request for proposal. If the Contracting Officer later determines that

discussions are necessary, the procedures in FAR 15.306 shall be followed.

SUBPART 15.2—SOLICITATION AND RECEIPT OF PROPOSALS

AND INFORMATION

15.203 Requests for proposals.

Requests for proposals (RFPs) that require Past Performance Questionnaires

(PPQs) shall utilize the standard NAVFAC PPQ form. The Contracting Officer shall

allow offerors to submit PPQs with their proposal and shall not require PPQs to be sent

directly from the client(s). PPQs sent directly to the Contracting Officer by the client(s)

are acceptable.

15.209-100 NAVFAC provision/solicitation language, All or None Offers.

(a) Use the following NAVFAC language entitled, “All or None Offers,” in solicitations

where proposals are to be accepted on an all or none basis. The language should be

included in Section L of solicitations using Uniform Contract Format (UCF) or; for

solicitations using the Construction Specifications Institute (CSI) formats available in the

Standard Procurement System (SPS), include the language in Division 00800 of

solicitations using the undated CSI format or if using the CSI 2012 format include the

language in Division 00 73 00.

ALL OR NONE OFFERS

Offers are solicited on an “all or none” basis and FAR 52.215-1, INSTRUCTIONS TO

OFFERORS-COMPETITIVE ACQUISITION in Section L, is hereby modified. Failure to

submit offers for all line items listed shall be cause for rejection of the offer.

(End of NAVFAC language)

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SUBPART 15.3—SOURCE SELECTION

15.303 Responsibilities.

(a) Source Selection Authority (SSA). The dollar value includes all options or option

years. For indefinite delivery contracts, the approval authorities are based upon the total

ceiling price of the solicitation/contract. For a multiple award indefinite quantity, the total

ceiling price includes the aggregate value of all proposed contracts. (As an example, a

multiple award indefinite delivery solicitation with a maximum value of $240M that results

in award of four contracts, the aggregate maximum value of all task orders issued during

the life of the contracts may not exceed $240M). The contract value of an indefinite

delivery indefinite quantity (IDIQ) solicitation/contract is not the minimum guarantee

amount or the estimated value of the seed project. For actions over $30M, the SSA

must hold a Level III warrant. For acquisitions with a total estimated value of $100M or

more, the SSA shall be an individual other than the Procuring Contracting Officer (PCO).

See NFAS 1.690 for Business Clearance Memorandum (BCM) approval levels.

Authority to act as SSA has been delegated as follows:

Dollar Value Source Selection Authority

All Special Ventures at any dollar value Echelon II

Up to and including $30M Contracting Officer with

appropriate warrant level

Over $30M up to and including $100M Echelon III/IV Division Director with

Appropriate warrant authority and

commensurate experience/training

in the Business Line/Product Line

(BL/PL) (i.e., CI, ENV, FSC) required

in the procurement

Over $100M Echelon III/IV CCO/00/09

(b) For competitive negotiated acquisitions below $100M, the SSA shall establish a

single board comprised of only the Source Selection Evaluation Board (SSEB), unless

multiple boards consisting of the SSEB and Source Selection Advisory Council (SSAC)

are approved as outlined in 15.303(b)(4) below. The SSA should consider the

establishment of multiple boards if the estimated value of the action is near the $100M

threshold.

(1) The SSEB will be comprised of a chairperson and evaluators (also known as

SSEB members). The SSEB members may be organized into functional teams

corresponding to the specific evaluation criteria (e.g., Technical Team, Past

Performance Team, Cost Team, etc.). Use of non-Government personnel as voting

members of the SSEB is prohibited. Evaluation of Non-Cost/Price factors and cost or

price proposals must be performed independent of each other. The SSEB chairperson

shall ensure the cost or price proposals are not released to anyone conducting

evaluation of Non-Cost/Price factors until that evaluation is completed and findings are

documented. The SSEB may deliberate on the overall ranking of offerors only when

requested by the SSA or required by the Source Selection Plan (SSP) and, if necessary,

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provide a competitive range recommendation with suggested discussion questions or a

best value recommendation. Discussion questions shall be documented on Evaluation

Notices and reviewed by the Contracting Officer and Legal Counsel.

(2) The SSEB should consist of a minimum of two and a maximum of five

members. The composition of the SSEB shall be commensurate with the technical

complexity of the procurement and minimized to the maximum extent practicable.

(i) The SSEB chairperson does not need to be a warranted Contracting

Officer; however, the chairperson’s primary career field must be designated as

Contracting. A waiver to serve as the SSEB chairperson shall be approved by the

Echelon III/IV Chief of the Contracting Office (CCO). In all cases, a contracting

representative with the appropriate training and experience must serve as a member of

the SSEB.

(ii) The SSEB may consist of a Contracting Officer operating within their

warrant authority who performs the duties of both the SSA and the SSEB chairperson

and a single technical representative.

(3) A single document shall be prepared by the SSEB documenting the outcome

of the evaluation of Non-Cost/Price factors, the cost or price analysis, and if necessary

the SSEB’s deliberations. All evaluation records and narratives from the SSEB shall be

reviewed by the Contracting Officer and Legal Counsel before evaluation results are

presented to the SSAC (when used) and the SSA. In the event there is significant

disagreement among the SSEB members regarding evaluation results that should be

presented to the SSAC (when used) and the SSA, the minority opinion(s) shall also be

presented at the decision briefing providing the SSA with sufficient information to fully

consider the minority view(s).

(4) If appropriate, based on complexity and associated risk of the acquisition,

multiple boards (SSEB and SSAC) may be used for acquisitions below $100M when

approved by the Echelon III/IV CCO.

establish multiple boards as follows:

(1) Source Selection Evaluation Board (SSEB), as described in 15.303(b)(1)

above. If Small Business Utilization is a factor in the source selection, the Small

Business Specialist shall be assigned to the SSEB as a member to evaluate this

criterion.

(2) Source Selection Advisory Council (SSAC), consisting of two or three

members.

(i) The SSAC chairperson does not need to be a warranted Contracting

Officer; however, the chairperson’s primary career field must be designated as

Contracting. A waiver to serve as the chairperson shall be approved by the Echelon

III/IV CCO.

(ii) The SSAC provides oversight to the SSEB and serves as the interface

between the SSEB and SSA. The SSAC shall review evaluation results of the SSEB to

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ensure the evaluation process follows the evaluation criteria and that ratings are

appropriately and consistently applied. The SSAC shall provide a written comparative

analysis and award recommendation to the SSA after review by Legal Counsel. In the

event there is significant disagreement among the SSAC members regarding the

recommendation, a minority opinion shall be documented and presented to the SSA as

part of the comparative analysis.

(3) For NAVFAC EXWC ONLY: As authorized under FY2017 NDAA Section 233

Pilot Program for the Enhancement of the Research, Development, Test and Evaluation

Centers, Phase II, Sprint 1 (Section 233), the NAVFAC EXWC CCO may waive the

requirement to use multiple evaluation boards for actions greater than $100M up to but

less than $250M.

(d) Participants of the source selection process (multiple or single board process).

(1) All personnel appointed as members of any board in a source selection,

including clients, are required to complete CTC 415 prior to serving on the assigned

board. The CCO may grant a temporary waiver to this requirement provided the online

course, NAVFAC CTC-W415 Source Selection (available in Total Workforce

Management Services (TWMS)), is completed and registration and completion of CTC

415 occurs within the following twelve (12) months. In cases where board members are

individuals outside of NAVFAC, their equivalent training (for CTC 415) will be approved

by the CCO on a case-by-case basis. Clients participating as advisors are not required

to complete this training; however, they will be required to sign the Certificate of Non-

Disclosure and Conflict of Interest Statement.

(2) NAVFAC engineers and architects appointed as members of the SSEB

performing evaluations of Non-Cost/Price factors which include engineering, design,

construction or oversight of engineering, design, and construction must be licensed

professional engineers or registered architects unless a waiver is granted pursuant to

NAVFACINST 3540.1D, dated 22 February 2019. The licensing requirements for the

chairperson or team lead shall not be waived under any circumstances. Non-licensed

engineers and architects may be appointed to serve on selection boards, evaluation

boards, or evaluation teams for contracts that do NOT involve engineering, design,

construction or any oversight of design, engineering or construction.

(3) NAVFAC Counsel shall be assigned as an advisor on all source selections.

(4) Non-Government personnel may not be appointed as a member to any board.

Use of non-Government personnel as advisors shall be supported by a written

determination in accordance with NFAS 37.204 and FAR 37.204. They may not

determine ratings or rankings of offerors’ proposals and are prohibited from participating

in the review and evaluation of past performance information. Non-Government

advisors must sign the Non-Disclosure Agreement (NDA) required to be signed by all

Government employees participating in the source selection. They shall also submit

documentation indicating their personal stock holdings for a conflicts of interest review in

consultation with the legal advisor prior to being allowed to access source selection

information. The Contracting Officer must ensure the Government has received consent

from the offerors before a non-Government advisor is given access to proprietary

information. When non-Government advisors are used, the solicitation must contain the

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following provision in the instructions to offerors in Section L of the Uniform Contract

Format (UCF) or appropriate section when using other formats:

USE OF NON-FEDERAL PERSONNEL IN EVALUATIONS

(a) The Government intends to use one or more non-government

personnel as advisor(s) in evaluating proposals. These contractor-advisor(s)

are required by the terms of their government contract and the Procurement

Integrity Act (41 U.S.C. §23) to maintain the confidentiality of any materials to

which they are given access. Submission of your proposal to the government

constitutes implied consent to allow review of your proposal by contractor-

advisor(s).

(b) An offeror shall require the contractor-advisor to execute a

supplemental non-disclosure agreement (NDA) by including a copy of the NDA

with their proposal. The NDAs are not considered part of the proposal and

communications (if any) between the contractor-advisors and the offerors

regarding the terms of the NDA are neither discussions nor clarifications.

to agree on the terms and conditions to be set forth in the NDA, offerors are

advised that the inability of the government to obtain the contractor-advisor’s

expertise in reviewing the offer may adversely impact the government’s

evaluation of the proposal.

(End of Provision)

(e) Source Selection Plan (SSP). SSPs are required for all competitive acquisitions

over the SAT, excluding contract awards using simplified acquisition procedures. SSPs

for acquisitions of $250M or more shall be submitted to the appropriate Echelon II

Division Director for approval prior to issuance of the solicitation. SSPs submitted by

Echelon IV to Echelon II do not require review/approval by Echelon III. The SSA shall

approve SSPs for acquisitions below $250M. After the SSP is approved, any changes to

the plan except personnel changes require re-approval of the plan by Counsel and the

approval authority. For personnel changes, approval is required by the SSA.

15.304 Evaluation factors and significant subfactors.

(a) In all SSPs, Technical factors shall be equal to Past Performance. Prior to

determining Non-Cost/Price factors are more important than Price in the Tradeoff

process, a detailed memorandum shall be approved by the Echelon III or IV CCO and

the Business Line Manager/Business Line Coordinator (BLM/BLC).

(b) For unrestricted acquisitions using the Tradeoff process, the SSP shall include a

separate evaluation factor for Small Business Utilization, which shall be weighted at

least equal to the highest ranking Technical factor. When evaluating small business

participation, adjectival ratings shall be utilized.

business participation is exempt in accordance with DFARS 215.304(c)(i). However, in

the event that it is appropriate to include in some circumstances, it shall be a separate

evaluation factor.

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(d) Solicitations utilizing source selection procedures for procurements within the 50

United States, the District of Columbia, and outlying areas (as defined in FAR 2.101)

shall contain a standard "Safety" Non-Cost/Price factor. This factor shall be included as

a stand-alone evaluation factor and not as a subfactor or an element of the Past

Performance evaluation factor. This requirement

may only be waived by the Echelon

III/IV 00/09.

(e) For design-build procurements, refer to the Capital Improvements Line acquisition

strategy established for the current fiscal year.

15.306 Exchanges with offerors after receipt of proposals.

The PCO shall prepare a competitive range decision document (CRDD) whenever

the PCO establishes and the SSA approves a competitive range. The CRDD shall be

updated and re-approved by the SSA if an offeror is eliminated from the competitive

range prior to making the source selection decision.

15.308 Source selection decision.

The SSA shall prepare a source selection decision document (SSDD) for all source

selections. The SSDD shall reflect the SSA’s independent, integrated, comparative

assessment and decision, and include the rationale for any business judgments and

tradeoffs made or relied on by the SSA. The SSDD is the single summary document

supporting selection of the best value proposal consistent with the stated evaluation

criteria. It shall clearly explain the decision and document the reasoning used by the

SSA to reach the decision consistent with FAR 15.308.

15.371 (DFARS) Only one offer.

The Contracting Officer shall comply with DFARS 215.371-1.

15.371-5 (DFARS) Waiver.

The requirement to resolicit for an additional period of at least 30 days may be

waived by one management level above the Contracting Officer.

SUBPART 15.4—CONTRACT PRICING

15.403 Obtaining cost or pricing data.

15.403-1 (NMCARS) Prohibition on obtaining certified cost or pricing data

(10 U.S.C. 2306a and 41 U.S.C. Chapter 35)

(c)(4)(B) Echelon III activities shall consolidate and submit an annual report of Truth in

Negotiations Act waivers to the Echelon II People, Process and Policy Director for their

area of responsibility (AOR), by 15 October. NFAS Appendix A summarizes all reporting

requirements.

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15.403-3 (DFARS) Requiring Data Other than Certified Cost or Pricing Data.

(a)(4) A request for an Head of the Contracting Activity (HCA) determination that it is in

the best interest of the Government to award to an offeror that fails to comply with a

Contracting Officer’s request for Data Other than Certified Cost or Pricing Data, must be

submitted via the Echelon III or IV CCO, and the Assistant Commander for Acquisition

via the Echelon II Division Director.

(d) Reports. Echelon III activities shall consolidate and submit a quarterly report of all

HCA determinations to the Echelon II People, Process and Policy Director for their area

of responsibility (AOR), by 20 June, 20 October, 20 January, and 20 April. NFAS

Appendix A summarizes all reporting requirements.

15.403-5 Instructions for submission of certified cost or pricing data and data

other than certified cost or pricing data.

(a) For negotiations, which rely on a contractor's cost or pricing data, the business

clearance shall state that the government relied on this data.

(b) For cost contracts, extrapolate costs to the total capacity on best value source

selections.

equal to or below the certified cost or pricing data threshold, the following may be used

in lieu of requiring the contractor to submit a detailed breakdown of overhead:

(1)(i) Ten percent of labor, material and equipment estimates in lieu of field

overhead,

(ii) Five percent of subcontract estimates,

(iii) Three percent of the total labor, material and equipment estimates and the

amount computed by (i) above in lieu of home office overhead or,

(2) The audited rates for that company established by a Defense Contract Audit

Agency (DCAA) audit less than one-year-old.

(d) No overhead or profit shall be allowed on bond expenses.

(e) When an architect-engineer (A-E) contract includes reimbursable travel for an A-

E firm located outside the commuting distance of the construction site, the contract shall

state that the A-E firm will be reimbursed for authorized travel in accordance with

government travel regulations. No profit and overhead will be allowed on reimbursable

travel expenses contained in an otherwise fixed-price contract.

15.404 Proposal analysis.

15.404-1 Proposal analysis techniques.

When cost analysis is required or when negotiating the basic award of a multi-

tasked, A-E indefinite delivery indefinite quantity (IDIQ) arrangement (including

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Comprehensive Long-Term Environmental Action, Navy (CLEAN) contracts), the

Contracting Officer shall justify labor and indirect rates in terms of average area rates for

similar work. Rates in excess of average area rates should be justified in terms of the

need of the government.

15.404-2 Information to support proposal analysis.

When the Contracting Officer plans to sustain less than 75% of the total

recommended questioned costs (excluding unsupported costs) in a DCAA audit report

on a proposal valued at $10M or more, the Contracting Officer shall attempt to resolve

disagreements with the auditor. If the differences cannot be resolved, the Contracting

Officer shall document the discussion, including the basis of the disagreements, in the

pre-negotiation business clearance and in writing to the auditor (e.g., email).

Negotiations may commence after discussions with DCAA have been documented and

the pre-negotiation business clearance has been approved. If DCAA requests higher-

level review, the Contracting Officer shall notify the CCO and provide DCAA with the

name and contact information of the CCO.

15.404-4 Profit.

(a) When establishing the profit or fee portion of the Government pre-negotiation

objective in price negotiations based on cost analysis, the Contracting Officer shall use

profit/fee analysis to determine the reasonableness of any profit/fee included in the

contract price. For actions below the cost or pricing data threshold, refer to FAR 15.404-

4(d) for profit analysis factors.

(b) Government set predetermined profit rates shall not be established upon contract

award and used in resulting task orders. Profit will be negotiated on individual task

orders based on project risk and complexity. The profit determination must be structured

and supported in the business clearance or price negotiation memorandum.

(1) For construction execution of petroleum, oil and lubricants (POL) tanks under

the Clean, Inspect, Repair (CIR) process only, Echelon III and IV CCOs may approve

the use of maximum profit rates for task or delivery orders that will be binding to

modifications to those task or delivery orders. Profit analysis is still required when cost

analysis is required.

not exceed 10 percent of the Contract Task Order (CTO) total.

15.404-73 (DFARS) Alternate structured approaches.

(b)(2)(S-100) Facilities capital cost of money shall not apply to contracts where

reimbursement is provided to contractors through construction equipment use rates or

allowances (see FAR 31.105(d)). In other situations, where facilities capital cost of

money is proposed and verified, follow the procedure in DFARS 215.404-73(b)(2).

15.404-73-100 Alternate structured approaches for construction contracts.

As required by DFARS 215.404-4, all fixed-price construction contract actions shall

use the alternate approach. For cost reimbursement contracts, the weighted guidelines

2018 Edition, through Change 1 issued 02 August 2019

method described in DFARS 215.404-71 shall be used if cost realism is not assessed in

competitive acquisitions.

15.404-73-101 Alternate structured approaches for architect-engineer contracts.

The pre-negotiation profit objective for a firm-fixed-price A-E (including surveying and

mapping) contract, contract modification or task order shall be determined by the

alternate structured approach. The profit objective for all other types of A-E contracts

will be determined in accordance with DFARS 215.404-71.

SUBPART 15.6—UNSOLICITED PROPOSALS

15.606 Agency procedures.

Unsolicited proposals shall be forwarded to the Echelon III/IV contracts office via the

Acquisition chain of command. The Echelon III/IV CCO shall determine the disposition

of the proposal in accordance with applicable regulations. This authority may not be

redelegated. Unsolicited proposals received at Echelon II shall be forwarded to the

cognizant Echelon II Acquisition Division Director for disposition of the proposal.

2018 Edition, through Change 1 issued 02 August 2019

PART 16

TYPES OF CONTRACTS

SUBPART 16.3—COST-REIMBURSEMENT CONTRACTS

16.302 Cost Contracts.

Cost-plus contracting for military construction and family housing projects is

prohibited per Section 2801 of the FY12 National Defense Authorization Act (NDAA),

which was effective 31 December 2011. Cost-plus contracts are described in FAR

16.304, 16.305 and 16.306. This prohibition is applicable in all cases, even if there is a

declaration of war or a declaration by the President of a national emergency under

Section 201 of the National Emergencies Act (50 U.S.C. 1621). Military construction

refers to a type of work and not a particular appropriation available for construction work

(e.g., MCON) or source of construction project authorization and also applies to

construction work below the Military Construction Appropriation Act (MILCON) threshold.

16.302-100 Approval of cost-reimbursement type contracts.

The approval of the Assistant Commander for Acquisition is required prior to

committing to any Streamlined Acquisition Plan (STRAP) or Management and Oversight

Process for the Acquisition of Services – Streamlined (MOPAS-S) to enter into or award

a cost reimbursement contract, inclusive of options:

In excess of $50M (if awarded prior to October 1, 2019)

In excess of $25M (if awarded on or after October 1, 2019)

The request for approval shall explain how the procurement’s history, current market

conditions, or other circumstances support use of a cost-reimbursement type action. The

request, which can be in email format, shall be forwarded to the appropriate Echelon II

Division Director, via the Echelon III Chief of Contracting Office (CCO), for approval.

Note: This approval is in addition to any other required approval or documentation

required based on the specific cost reimbursement type contract to be used (see NFAS

16.306 and 16.405-2) or included in higher regulations.

16.306 (DFARS) Cost-plus-fixed-fee contracts.

A request to use MILCON funded cost-plus-fixed-fee contracts shall be forwarded to

the appropriate Echelon II Division Director via the Echelon III CCO for final approval by

Office of Secretary of Defense (OSD).

SUBPART 16.4—INCENTIVE CONTRACTS

16.404 (DFARS) Fixed price contracts with award fees.

For guidance, see NAVFAC Award Fee Desk Guide.

2018 Edition, through Change 1 issued 02 August 2019

16.405-2 Cost-plus-award fee.

All cost-plus-award fee (CPAF) contracts must be approved by the Head of the

Contracting Activity (HCA)/Assistant Commander for Acquisition. Each determination

and finding (D&F) must certify that "the work to be performed is such that it is neither

feasible nor effective to devise predetermined objective incentive targets applicable to

cost, technical performance or schedule”. The D&F shall be forwarded via the Echelon

III/IV CCO to the appropriate Echelon II Division Director for approval by the Assistant

Commander for Acquisition. This authority may not be redelegated.

SUBPART 16.5—INDEFINITE DELIVERY CONTRACTS

16.503 Requirements contracts.

(e) The contract price on the award document shall be marked “Estimated Total

Price.”

(f) No funds shall be obligated at time of award but are obligated at time of issuance

of orders against the contract.

16.504 Indefinite-quantity contracts.

(a)(4)(viii) The contract price on the award document shall be marked “Not to

Exceed.”

(a)(4)(ix) Funds are to be obligated at time of award for the minimum quantity only.

(c)(1)(ii)(D) Limitation on single award contracts.

(i) The determination to award a task or delivery order contract in an amount

estimated to exceed $112M (including all options) to a single source must be submitted

for approval by Assistant Secretary of the Navy for Research, Development and

Acquisition (ASN(RDA)). The determination must be submitted with a copy of the

approved STRAP or MOPAS-S via the Echelon III or IV CCO, the Assistant Commander

for Acquisition via the Echelon II Division Director, and via Deputy Assistant Secretary of

the Navy for Acquisition and Procurement (DASN(AP)) using the format required by

NMCARS Annex 7.

16.504-100 NAVFAC solicitation/contract language, Minimum and Maximum Fees

[Architect-Engineer Indefinite Quantity Contracts].

(a) Use the following NAVFAC language entitled, “Minimum and Maximum Fees

[Architect-Engineer Indefinite Quantity Contracts]” in all indefinite quantity type

solicitations/contracts for architect-engineer (A-E) services. The language should be

included in Section H of solicitations using Uniform Contract Format (UCF) or; for

solicitations using the Construction Specifications Institute (CSI) formats available in the

Standard Procurement System (SPS), include the language in Division 00800 of

solicitations using the undated CSI format or, if using the CSI 2012 format, include the

language in Division 00 73 00.

2018 Edition, through Change 1 issued 02 August 2019

MINIMUM AND MAXIMUM FEES

[ARCHITECT ENGINEER INDEFINITE QUANTITY CONTRACTS]

As the contract minimum has been established with project ______ (insert project

number or name) identified in the basic award, the contract maximum annual total is $

(insert amount).

(End of NAVFAC language)

(b) Use the following NAVFAC language entitled, “Minimum and Maximum Fees

[Architect-Engineer Indefinite Quantity Contracts]” in indefinite quantity

solicitations/contracts for A-E services if the contract minimum will be established

without an initial project. The language should be included in Section H of solicitations

using Uniform Contract Format (UCF) or; for solicitations using the CSI formats available

in SPS, include the language in Division 00800 of solicitations using the undated CSI

format or, if using the CSI 2012 format, include the language in Division 00 73 00.

MINIMUM AND MAXIMUM FEES

[ARCHITECT ENGINEER INDEFINITE QUANTITY CONTRACTS]

The contract minimum is $__________ (insert amount). The contract maximum annual

total is $___________ (insert amount).

(End of NAVFAC language)

16.504-101 Facilities support indefinite-quantity contracts.

(a) The contract amount on the award document shall be the total of the extended

unit prices for each line item for the base year.

(b) The “quantity” column on the Schedule shall be marked “Estimated.”

“MAXIMUM NOT TO EXCEED (NTE) AND MINIMUM GUARANTEE

The maximum NTE value of an ordering period is the total of all the CLINs in that

ordering period. The maximum or NTE value of the contract is the total value of all

CLINs in the Schedule. Orders shall not be made that exceed the maximum NTE value

for any ordering period. The maximum NTE value of an ordering period and of the

contract may be increased by written modification to the contract in conjunction with any

modification that increases the value of an existing task order that is authorized by a

contract clause. Orders in excess of the estimated quantity set forth for any particular

CLIN shall not be exceeded without the Contractor’s agreement which shall be indicated

by signing or beginning performance of the order.

Concurrently with the award of the basic contract, the Government intends to issue a

task order to obligate the contract minimum guarantee for:

CLIN XXXX, Base Period recurring work;

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Minimum guarantees do not apply to the option periods.”

(d) The contract price on the award document shall be marked "Not to Exceed."

(e) The work identified for the recurring and non-recurring requirements in the

contract must be of a similar nature.

(f) Modifications to a task order, and a corresponding change to the NTE values of

an ordering period and the contract may be made without a FAR Part 6 Justification and

Approval (J&A) when:

(1) the modification is within the scope of an existing task order, consider factors

such as changes in the period of performance or the type of work, the extent of the

increase in cost or price, and whether offerors would have anticipated the potential for

the type of work contemplated by the modification. Counsel should be consulted

regarding such scope determinations.

16.504-103 FedMall contracts.

(a) All contracts will include the FAR clause 52.232-36, Payment by Third Party.

(b) All contracts will include in Section H the following provision:

“Contractor Support of Electronic Contracting (FedMall)

The contractor is required to offer indefinite quantity (IQ) pre-priced line item

services to authorized Government personnel when they are ordering the work directly

via the Governmentwide Commercial Purchase Card (GCPC) program. When receiving

GCPC orders against Section B, the contractor shall provide the supplies and services at

the offered price without additional markup or handling fee.

The contractor agrees to accept and process electronically submitted GCPC

orders for IQ services, including those orders issued through the FedMall. The FedMall

is a U.S. Government (USG) owned and operated web-based ordering system that

enables any Department of Defense (DoD) or Federal activity to search for and order

goods and services. Authorized GCPC users will receive approved accounts on FedMall

to view and order IQ line items.

The contractor is required to receive electronic IQ orders from the FedMall using

128-bit encrypted email. The contractor agrees to purchase, install, and utilize the most

recent version of PGP Personal software, or a comparable solution, for the purpose of

decrypting order notification emails from the FedMall. In addition, the DoD has

established the External Certification Authority (ECA) program to support the issuance of

DoD-approved certificates to contractors. The ECA program is designed to provide the

mechanism for contractors to securely communicate with the DoD and authenticate to

DoD Information Systems. The contractor agrees to purchase, install, maintain and use

a DoD-approved ECA certificate. Information on obtaining an ECA certificate can be

found at http://iase.disa.mil/pki/eca/Pages/certificate.aspx

The contractor shall post updates on order delivery schedule and performance to

the FedMall in a timely manner.

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The contractor shall track quantities and report total ordered quantity in FedMall

and approved DD 1155's by line item number each month and year-to-date. The report

shall be due to the Contracting Officer by the fifth day of the following month. The

contractor must track and report when total dollar value of all orders from both GCPC

purchases and DD 1155s exceed 75% of the combined Section B Pre-Priced Line Item

quantities."

contracts awarded without the FedMall clause and provision.

(d) FedMall orders will not exceed the SAT for services. FedMall orders for

construction work is not allowed.

(e) Unless an exception in paragraph (f) below applies, no IDIQ orders will be

accepted for processing through a NAVFAC contract’s office that can be ordered directly

by the client through FedMall unless approved by a waiver. It is the intent that IDIQ

contracts will be placed on FedMall. If a contract has been posted on FedMall and a

client requests a task order be issued not using FedMall, a waiver by the Echelon III/IV

CCO is required for each order. In no case shall the waiver process be utilized to

provide a customer the flexibility to circumvent use of FedMall. Use of blanket delivery

orders will only be utilized when a waiver has been granted by the Echelon III/IV CCO.

(f) An exception to paragraph (e) above may be made at the discretion of the

Contracting Officer, in coordination with the appropriate technical authority, when:

(1) Service requirements warrant additional contractual and technical oversight due

to complexity of the work involved (e.g., crane/technical/safety oversight or similar

considerations); or

(2) The client does not have GCPC authority to place FedMall orders valued above

the micro-purchase threshold.

Written justification by the Contracting Officer and appropriate technical authority

shall be required prior to issuing an IDIQ order. The written justification shall be included

in the contract file and a copy provided to the Echelon III/IV CCO to ensure this

exception is applied prudently.

16.505 Ordering.

(a) General.

(13) Delivery/task orders may only be executed by a warranted Contracting

Officer or an ordering officer designated pursuant to NFAS 1.602-2(c).

(14) All delivery/task orders may be issued on DD Form 1155 unless it is a

FedMall order. FedMall orders will follow the FedMall procedures.

(15) Orders under contracts funded with annual appropriations shall not be

executed in one fiscal year with commencement beginning in the next fiscal year (See

FAR 32.703-3).

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(16) Orders for severable services may be for a period that begins in one fiscal

year and ends in the next fiscal year if the order does not exceed one year. (See

DFARS 237.106).

(d) Undefinitized Task/Delivery Orders. Undefinitized task/delivery orders are

authorized only when the contract provides undefinitized orders as a method for

ordering.

(e) Delivery/task orders under non-DoD Governmentwide acquisition contracts

(GWACS) and multi-agency contracts. With written approval of a Contracting Officer a

level above the individual assigned the action, orders may be placed using GWACS (for

example GSA One Acquisition Solution for Integrated Services (OASIS)) and/or multi-

agency contracts for services including knowledge based services and are not limited to

the simplified acquisition threshold (SAT). These orders are interagency acquisitions

and must also comply with all applicable interagency requirements (See NFAS 17.5).

GWACS and/or multi-agency orders shall not be used for architect-engineer (A-E) or

construction. Additionally, GWACs and/or multi-agency orders for recurring facilities

support services (such as Base Operations Support (BOS), custodial, preventive

maintenance of equipment, etc.) shall be limited to those instances when they cannot be

procured as efficiently through a NAVFAC awarded contract and shall use small

business set-asides to the maximum extent possible.

Note: Orders for Engineering Services (not those procured under the Selection

of Architects and Engineers statute) and/or Program Management Services (see

NMCARS Annex 22) must consider use of SeaPort. If SeaPort is not used and the

requirement is not excepted by NMCARS 5237.102, a determination and findings (D&F)

shall be submitted for approval by DASN(AP) (see NFAS 16.505-100 and 37.103-100).

16.505-70 Orders under multiple award contracts.

(a) Prior to determining Non-Cost/Price factors, when combined, are more important

than Cost/Price for a task order, the proposed evaluation plan or a detailed

memorandum shall be approved by the Echelon III or IV CCO and the Business Line

Manager/Business Line Coordinator (BLM/BLC).

(b) Multiple Award Contract (MAC) task orders using the price only selection

methodology only, with an estimated value up to but less than $25M, do not require a

written MAC Task Order Evaluation Plan (TOEP). A written MAC Task Order Evaluation

Plan is required for any MAC task order above $10M not using the price only selection

methodology. Additionally, a written MAC TOEP is required for any MAC task order

above $25M. If required, the MAC TOEP must be prepared and approved prior to

issuing the solicitation. The approval authority for evaluation plans are as follows:

(1) Contracting Officer with appropriate warrant level for task orders with a value

up to and including $50M.

(2) One Management Level above the Contracting Officer for task orders with a

value over $50M.

2018 Edition, through Change 1 issued 02 August 2019

procured via a MAC task order unless a formal waiver is approved by the Echelon II CI

and ACQ. However, this policy does not apply to the Global Contingency Construction

contract and no waiver is required.

(d) Competitive task orders over the simplified acquisition threshold (SAT) shall be

solicited for a minimum of 30 days, except for architect-engineer MAC task orders which

shall have a minimum solicitation period of 14 days. The minimum solicitation period

may be waived by the cognizant Echelon III/IV CCO. A copy of the waiver shall be

submitted to the Echelon II Division Director.

(e) Solicitations that require past performance questionnaires (PPQs) shall utilize the

standard NAVFAC PPQ form. The Contracting Officer shall allow offerors to submit

PPQs with their proposal and shall not require PPQs to be sent directly from the

client(s). PPQs sent directly to the Contracting Officer by the client(s) are acceptable.

(f) Approval thresholds for limiting competition for task orders under multiple award

contracts are prescribed at NFAS 6.304-100(b).

16.505-100 Orders for Engineering Services and/or Program Management

Services, as identified in NMCARS Annex 22.

(a) The Contracting Officer shall consider SeaPort for use prior to issuing any task or

delivery order for Engineering Services (not those procured under the Selection

of Architects and Engineers statute) and/or Program Management Services (see

NMCARS Annex 22) unless an exception applies (see NMCARS 5237.102). If

SeaPort is not used and the requirement is not excepted, a determination and

findings (D&F) shall be submitted for approval by DASN(AP). The D&F shall be

submitted via the Echelon III/IV CCO, the appropriate Echelon II Division Director

and the Assistant Commander for Acquisition.

(b) In situations where repetitive task or delivery orders for Engineering Services

and/or Program Management Services (see NMCARS Annex 22) are anticipated,

a class D&F should be prepared and submitted for approval by DASN(AP) via

the Echelon III/IV CCO, the appropriate Echelon II Division Director and the

Assistant Commander for Acquisition.

SUBPART 16.6—TIME-AND-MATERIALS, LABOR-HOUR, AND LETTER

CONTRACTS

16.601 (DFARS) Time-and-materials contracts.

Determination and Findings (D&F) for a Time and Material (T&M) contract less than

or equal to $1,000,000 and a contract term less than or equal to 3 years, including

options, shall be approved by the appropriate Echelon III/Echelon IV CCO. A D&F for a

T&M or labor hour (LH) contract greater than $1,000,000 and a contract term less than

or equal to three years, including options, shall be approved by the Assistant

Commander of Acquisition/Deputy Director for Acquisition. When the contract term,

including options, exceeds three years, the D&F shall be approved by the Head of

Contracting Activity (HCA) as required by FAR 16.601(d). In addition to the

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requirements at DFARS 216.601, the D&F shall address why a cost-plus-fixed-fee term

contract or order is not appropriate.

16.602 Labor hour contracts.

D&F for a labor hour (LH) contract less than or equal to $1,000,000 and a contract

term less than or equal to 3 years, including options, shall be approved by the

appropriate Echelon III/Echelon IV CCO. A D&F for a T&M or LH contract greater than

$1,000,000 and a contract term less than or equal to three years, including options, shall

be approved by the Assistant Commander of Acquisition/Deputy Director for Acquisition.

When the contract term, including options, exceeds three years, the D&F shall be

approved by the HCA as required by FAR 16.601(d). In addition to the requirements at

DFARS 216.601, the D&F shall address why a cost-plus-fixed-fee term contract or order

is not appropriate.

2018 Edition, through Change 1 issued 02 August 2019

PART 17

SPECIAL CONTRACTING METHODS

SUBPART 17.2—OPTIONS

17.202 Use of options.

17.202-100 Use of options in construction contracts.

(a) Written approval by a level above the Contracting Officer is required for the use of

options in construction contracts and combination construction and service contracts in

which the service work is the option.

(b) The period of time in which the Contracting Officer has to exercise an option for

construction is limited to 365 days from date of contract award. If it is determined a

longer period of time is necessary and prior to release of any solicitation, a written

request for a longer period shall be submitted for approval by the Echelon III/IV Chief of

the Contracting Office (CCO).

17.202-101 Use of options in facilities support contracts.

(a) Written approval of a level above the Contracting Officer is required to include

construction options in facilities support service contracts to be performed in the United

States, its territories or trusts.

(b) Leases for equipment may include an option to buy. Operation and Maintenance,

Navy (O&MN) funds may not be used to exercise a purchase option in excess of

$100,000.

the base ordering period or any option ordering period shall not exceed twelve months.

17.202-102 Use of options in architect-engineer contracts.

(a) The Contracting Officer shall make the written determination required by FAR

17.205 justifying why options to extend the contract term beyond the base year is in the

government’s best interest.

(b) Any options included in an architect-engineer (A-E) contract must be stated in the

scope of services.

determination required by FAR 17.207 affirming that the A-E firm remains the most

highly qualified firm to do the work.

17.202-103 Use of options in Utility Service contracts.

Utility Service contracts, as defined in FAR 41.101, may be awarded for periods

not exceeding 10 years in accordance with NFAS 41.103 and FAR 41.103. The overall

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term of a utility services contract using 40 U.S.C. 501 shall be no more than 30 years,

inclusive of the base and all options.

17.204 Contracts.

(e)(i) Service contracts are limited to a term of five years. A waiver must be

approved prior to issuing a solicitation for services if the term, including options, exceeds

five years or up to five years and six months when FAR clause 52.217-8, “Option to

Extend Services,” is included in the solicitation and the approved Streamlined

Acquisition Plan (STRAP) or Management and Oversight Process for the Acquisition of

Services – Streamlined (MOPAS-S) included the use of the clause and obtained pricing

for the additional six months. A maximum contract term of eight years (up to eight years

and six months when FAR clause 52.217-8, “Option to Extend Services,” as stated

above, is included in the solicitation) for Base Operations Support (BOS) contracts is

allowable with an approved waiver in accordance with this paragraph.

1. The waiver request shall be approved by the Assistant Commander for

Acquisition/Deputy Director for Acquisition for any solicitation that

includes terms that exceed five years (up to five years and six months

when FAR clause 52.217-8, “Option to Extend Services,” is included in

the solicitation).

(e)(i)(C) Waiver requests for solicitations with terms over 10 years shall be approved

by the Assistant Secretary of the Navy for Research, Development and Acquisition

(ASN(RDA)). The waiver request must be submitted with a copy of the approved

Streamlined Acquisition Plan (STRAP) or Management and Oversight Process for the

Acquisition of Services – Streamlined (MOPAS-S) via the Echelon III or IV CCO, the

Assistant Commander for Acquisition via the Echelon II Division Director and via Deputy

Assistant Secretary of the Navy for Acquisition and Procurement (DASN(AP)). The

waiver request shall explain/demonstrate any unique circumstances or extreme

situations, and how the procurement’s competitive history and/or significant capital

investment requirement indicates that a longer period of performance is necessary to

establish or maintain competition. All waiver requests shall be coordinated via the

Headquarters (HQ) ACQ Division Director. A waiver request submitted by Echelon IV

does not require review/approval by Echelon III but a copy shall be transmitted

concurrently to the Echelon III CCO.

(f) The ordering period for task or delivery order contracts (excluding facility support

contracts that include both recurring and non-recurring work) including contracts for

construction, architect-engineering and knowledge based services, Blanket Purchase

Agreements, and Basic Ordering Agreements, may be for any period up to five years

without requiring separate one-year option periods per DFARS 217.204(e)(i)(A) and

must be specified in the basic contract. Written email approval from the respective

Echelon III/IV CCO is required when the ordering period will exceed 12 months on

indefinite delivery contracts.

17.207 Exercise of options.

(a) Prior to exercising an option on a services contract, ensure the language required

by DFARS 211.106 is included in the Statement of Work/Performance Work Statement

(SOW/PWS) or incorporated by modification.

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(b) Contracts that have been awarded where the pricing was not evaluated for

exercising the Option to Extend Services under FAR clause 52.217-8 during the initial

competition shall follow bridge contract procedures pursuant to NMCARS 5206.3 for

Other Than Full and Open Competition. Approval and authorization to award a bridge

contract in the prescribed format at NMCARS Annex 5 shall be obtained prior to

requesting a Justification and Approval (J&A).

Extend Services under FAR clause 52.217-8, exceeds the limits defined in NFAS

17.204(e)(i), a waiver is required by NFAS 17.204(e)(i)(1).

(d) If exercising the option will extend Engineering Services (not those procured

under the Selection of Architects and Engineers statute) and/or Program Management

Services (see NMCARS Annex 22), SeaPort must be considered for use to procure the

services. If SeaPort is not used and the option does not qualify for an exception at

NMCARS 5237.102, a determination and findings (D&F) shall be submitted for approval

by Deputy Assistant Secretary of the Navy for Acquisition and Procurement (DASN(AP)).

The D&F shall be submitted via the Echelon III/IV CCO, the appropriate Echelon II

Division Director and the Assistant Commander for Acquisition.

17.208 Solicitation provisions and contract clauses.

17.208-100 NAVFAC contract clauses.

(a) Use the clause at FAR 52.217-7, “Option for Increased Quantity-Separately

Priced Line Items,” in:

(1) A-E contracts when the contract provides for exercise of an option for post

construction award services other than those specified at DFARS 236.609-70, and

(2) construction contracts with option(s) for additional work.

SUBPART 17.5—INTERAGENCY ACQUISITIONS

17.500-100 Scope of subpart, Interagency and Intra-Agency acquisitions.

The policy in this subpart is applicable to both interagency and intra-agency

acquisitions. The following definitions apply:

Interagency acquisitions are: DoD acquisitions when supplies or services required are

obtained from another federal agency outside of DoD, either by an assisted acquisition

or a direct acquisition. For example, an acquisition made between the Department of

Energy and Department of Navy. In accordance with FAR 2.101, the term includes:

o Acquisitions under the Economy Act (31 U.S.C. 1535); and

o Non-Economy Act acquisitions completed under other statutory authorities.

e.g. --General Services Administration (GS) Federal Supply Schedules

(FSS) in FAR 8.4 and

--Governmentwide acquisition contracts (GWACs) such as GSA One

Acquisition Solution for Integrated Services (OASIS).

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Note: FSS Orders less than $550K are inter-agency acquisitions,

however, in accordance with FAR 17.500(c)(2), the requirements

of FAR 17.502-1 and 17.502-2 do not apply.

Intra-agency acquisitions are DoD acquisitions with any other DoD agency. For

example, an acquisition made between the Department of the Navy and the Department

of the Army.

“Requesting agency” refers to the agency requesting the supplies or services.

“Servicing agency” refers to the agency providing the supplies or services.

“Assisted acquisition” refers to the servicing agency conducting an acquisition on

behalf of the requesting agency.

“Direct acquisition” refers to the requesting agency placing an order against another

agency’s indefinite-delivery vehicle (no action is taken by the servicing agency).

17.502-1 [Removed and Reserved]

17.502-2 (NMCARS) The Economy Act.

(a) A D&F, in the format outlined in BMS, is required for:

(1) Interagency Economy Act Orders (assisted and direct contract actions outside

of DoD), unless there is an exception in paragraph (c) below or other specific statutory

authority (e.g., FSS and GWAC) applies.

i. If contracting action on the part of the servicing agency is NOT

required (direct acquisition); in accordance with NMCARS

5217.502-2(c)(2)(A), approval of the D&F is delegable from the

Head of the Contracting Activity (HCA) designee to the

appropriate level within the organization, and is shown in the

approval table at (b) below. For example, if NAVFAC is

performing the work for another agency with its internal workforce,

approval of the D&F is encouraged to take place at the

appropriate level.

ii. If contracting action on the part of the servicing agency IS required

(assisted acquisition) and it is to non-DoD activities (interagency),

the approval table at (b) below applies. For example, the

Environment Protection Agency is contracting for work on behalf

of NAVFAC.

(2) Intra-agency Agreements (within DoD), both Economy Act and non-Economy

Act, that result in a contract or order for knowledge based services.

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(b) The thresholds and approval authority for D&Fs are as follows:

Threshold

Economy Act Direct*

Interagency Acquisition

Approval Authority

Economy Act Assisted*

Interagency Acquisition

Approval Authority

Intra-agency Acquisition

Approval Authority for

Knowledge Based

Services Approval

Authority**

> Micro-

purchase

Threshold

to SAT

Requiring Office

Commanding Officer

Requiring Office

Commanding Officer

Requiring Office

Commanding Officer

> SAT to <

$5M

Echelon III/IV

Commander/Commanding

Officer

Echelon III

Commander/Commanding

Officer

Echelon III/IV

Commander/Commanding

Officer

$5M to

<$50M

Asst Commander for ACQ

> $50M to

$550M

DASN(AP)

> $550M

ASN(RDA)

*Approval of any D&F will also document the review and approval outlined in NMCARS

5217.770 if required.

**The D&F format outlined in BMS for Economy Act Orders shall also be used for Intra-

agency knowledge based services regardless of authority (Economy Act or non-

Economy Act).

Notes:

(1) All assisted acquisitions regardless of dollar value must be supported by an

Interagency Agreement (IA). Each agency’s file shall include the IA.

(2) D&Fs that require approval above the Asst. Commander for ACQ shall be routed via

the appropriate Echelon II Division Director.

(3) Approval authority of D&Fs for Interagency Economy Act actions that will result in a

contracting action executed by an agency not subject to the FAR, is limited to the Navy

Senior Procurement Executive, ASN(RDA), without power of redelegation (NMCARS

5217.502-2(b)). The D&F must be submitted with a copy of the approved STRAP or

MOPAS-S via the Echelon III or IV CCO, the Assistant Commander for Acquisition via

the Echelon II Division Director and DASN(AP)).

(4) For intra-agency assisted acquisitions (excluding those for knowledge-based

services) the interagency agreement shall be documented on the DD Form 1144,

Support Agreement (see template at

http://www.acq.osd.mil/dpap/pacc/cc/resources.html

) in accordance with DFARS PGI

217.502-1.

2018 Edition, through Change 1 issued 02 August 2019

(5) For intra-agency acquisitions performed by NAVFAC for another DoD Component,

the DD Form 1144 is required for use to document reimbursable support in accordance

with DoD FMR

Vol 11A Chapter 3.

required for the following types of orders:

(1) OPM for civilian recruitment certificates.

(2) Orders with the Government Printing Office.

(3) Orders with General Services Administration (GSA) for vehicle purchases.

(d) Reporting. Using the Inter-Intra Agency Log, D&Fs shall be reported via annual

email to the Echelon II People, Process and Policy Director. Echelon III activities shall

consolidate the information for its area of responsibility (AOR) and submit a report by 10

November of each year.

By 10 December of each year, Echelon III activities shall submit an annual DoE

Work for Others (WFO) Order Compliance Assessment Results Report for its AOR to

the Echelon II People, Process and Policy Director. NFAS Appendix A summarizes all

reporting requirements.

SUBPART 17.7 – INTERAGENCY ACQUISITIONS: ACQUISITIONS BY

NONDEFENSE AGENCIES ON BEHALF OF THE DEPARTMENT

OF DEFENSE.

17.703 (NMCARS) Policy.

nondefense agency certifications of compliance by 15 October. NFAS Appendix A

summarizes all reporting requirements.

17.770 (NMCARS) Procedures.

(a) For Economy Act orders (direct and assisted) as well as non-Economy Act

knowledge based services orders over SAT, review and approval will be documented by

a signed D&F as required in NFAS 17.502-2(b).

(b) For direct non-Economy Act orders over SAT that are not for knowledge based

services, review and approval will be documented by an approved business clearance

memorandum or Pre or Post Negotiation Memorandum.

services, review and approval thresholds are the same as “Economy Act Assisted

Interagency Acquisition Approval Authority” thresholds as shown in NFAS 17.502-2(b)

above. Review and approval for these requirements will be documented by a separate

memorandum and be included in the file.

(d) In accordance with FAR 17.703, for all assisted non-Economy Act orders over

SAT, the Contracting Officer shall also verify at

2018 Edition, through Change 1 issued 02 August 2019

http://www.acq.osd.mil/dpap/cpic/cp/interagency_acquisition.html that the non-DoD

agency has certified its compliance or received a waiver (FARS 17.703). This

verification shall be documented in the file.

SUBPART 17.74—UNDEFINITIZED CONTRACT ACTIONS (DFARS)

17.7403 Policy.

For policies and procedures regarding undefinitized change orders pursuant to the

Changes Clause of a contract, refer to NFAS 43.2 Change Orders.

17.7403-100 Management of undefinitized contract actions (UCAs).

The Echelon III/IV CCO shall provide management oversight over UCAs issued by

the Contracting Officers under their cognizance to ensure appropriate use, management

attention to backlog, and establishment/adherence to definitization schedules.

17.7404 (DFARS) Limitations.

17.7404-1 Authorization.

(a) Undefinitized Contract Actions (UCA) may be executed either unilaterally or

bilaterally. UCAs shall be approved as follows:

(1) Up to and including $1,000,000, approval authority is delegated to the

Echelon III/IV Commanders/Commanding Officers and the CCO. This authority may be

redelegated to Levels I, II, or III Contracting Officers up to a maximum dollar value of

$150,000 per UCA.

(i) For construction execution of petroleum, oil and lubricants

(POL) tanks under the Clean, Inspect, Repair (CIR)

process only, up to and including $4,000,000, approval

authority is delegated to the Echelon III/IV

Commanders/Commanding Officers and the CCO. This

authority may be redelegated to Levels I, II, or III

Contracting Officers up to a maximum of $250,000 per

UCA.

(2) Over $1,000,000, approval authority is the appropriate Echelon II Division

Director.

(i) For construction execution of POL tanks under the CIR

process only, over $4,000,000, approval authority is the

appropriate Echelon II Division Director.

(b) Only Contracting Officers having specific UCA authority designated on their

warrant shall approve the use of contract actions for UCAs, unless delegated one-time

authority on a case-by-case basis.

2018 Edition, through Change 1 issued 02 August 2019

17.7404-2 Price ceiling.

A Not-To-Exceed (NTE) ceiling price shall be established for each UCA. This NTE

ceiling price may be adjusted by modification during performance if circumstances

warrant, but shall not be exceeded at definitization.

17.7404-4 Limitations on obligations.

See the limitations on obligations for UCAs at DFARS 217.7404-4.

17.7405 (NMCARS) Plans and reports.

(a)(2) The Consolidated Undefinitized Contract Actions (UCA) Management Report

is required to be reported semi-annually. Echelon III activities shall consolidate the

information for its AOR and submit a report by 10 April and 10 October via email to the

Echelon II People, Process and Policy Director. NFAS Appendix A summarizes all

reporting requirements.

PART 18

EMERGENCY ACQUISITIONS

(RESERVED)

2018 Edition, through Change 1 issued 02 August 2019

PART 19

SMALL BUSINESS PROGRAMS

SUBPART 19.5—SET-ASIDES FOR SMALL BUSINESS

19.505 (DFARS) Rejecting Small Business Administration recommendations.

Appeals by the Small Business Administration (SBA) Procurement Center

Representative (PCR) shall be forwarded to the Echelon III/IV Chief of the Contracting

Office (CCO) for a decision. This authority may not be redelegated.

SUBPART 19.7—THE SMALL BUSINESS SUBCONTRACTING PROGRAM

19.702 Statutory requirements.

Selection procedures for architects and engineers require an architect-engineer (A-

E) firm to identify who will perform the work (including subcontractors required under the

contract). Contracting Officers shall ensure A-E firms address their planned usage of

small business, veteran-owned small business, service-disabled veteran-owned small

business, HUBZone small business, small disadvantaged business, and women-owned

small business in the SF-330. Additionally, synopses for A-E services expected to

exceed $700,000 shall require a short-listed large business firm to submit a

subcontracting plan, in addition to the narrative in the SF-330, before price negotiations

begin for contract award. If the selected A-E firm fails to negotiate a subcontracting plan

acceptable to the Contracting Officer within the time limit prescribed by the Contracting

Officer, the firm will be ineligible for award.

19.703 (DFARS) Eligibility requirements for participating in the program.

All solicitations shall include a notice to offerors of the opportunity to use AbilityOne

(formerly known as Javits-Wagner-O’Day (JWOD)), SourceAmerica (formerly known as

NISH) and National Industries for the Blind (NIB) organizations to meet subcontracting

goals. The notice should include Historically Black Colleges and Universities/Minority

Institutions (HBCU/MI) information as well as a point of contact and telephone number.

19.704 Subcontracting plan requirements.

For A-E contracts over $700,000, a large business firm that is short-listed will be

required to submit a subcontracting plan (in addition to addressing small business

subcontracting criteria in the SF-330) before price negotiations begin for contract award.

SUBPART 19.8—CONTRACTING WITH THE SMALL BUSINESS ADMINISTRATION

(THE 8(a) PROGRAM)

19.803 Selecting acquisitions for the 8(a) program.

A-E contracts may be awarded under the 8(a) program, HUBZone Businesses and

Service Disabled Veteran Owned Small Businesses (SDVOSBs). Selection must follow

procedures for the selection of architects and engineers at 40 U.S.C. 1101-1104. The

SBA must provide a slate of qualified A-E firms and the NAVFAC activity will make the

selection of the most highly qualified firms.

2018 Edition, through Change 1 issued 02 August 2019

19.805 Competitive 8(a).

19.805-1 General.

The approval of the Assistant Commander for Acquisition/Deputy Director for

Acquisition is required prior to committing to any Streamlined Acquisition Plan (STRAP)

or Management and Oversight Process for the Acquisition of Services – Streamlined

(MOPAS-S) to enter into or award an 8(a) sole source contract, pursuant to FAR 19.805-

1(b)(2) and DFARS 219.805-1, estimated to exceed $4,000,000, inclusive of all contract

periods or options. The request for approval shall explain how the procurement’s

competitive history, current market conditions, or other circumstances support a sole

source action. The request for approval by the Assistant Commander for

Acquisition/Deputy Director for Acquisition shall be submitted via the Echelon III CCO,

and the appropriate Echelon II Division Director.

PART 20

(RESERVED)

PART 21

(RESERVED)

2018 Edition, through Change 1 issued 02 August 2019

PART 22

APPLICATION OF LABOR LAWS TO GOVERNMENT ACQUISITIONS

SUBPART 22.1—BASIC LABOR POLICIES

22.101 Labor relations.

22.101-1 (NMCARS) General.

(a) For guidance, see SECNAV Instruction (SECNAVINST) 4200.36A

(or successor

instruction), Contractor Industrial Labor Relations.

SUBPART 22.3—CONTRACT WORK HOURS AND SAFETY STANDARDS

22.305 Contract clause.

(a) The Construction Wage Rate Requirements statute applies to construction

contracts over $2,000 in the United States, the District of Columbia and the

Commonwealth of the Northern Mariana Islands. Construction contracts in excess of

$150,000 for work in Puerto Rico, the Virgin Islands, Outer Continental Shelf Lands

defined in the Outer Continental Shelf Lands Act, (43 U.S.C. 1331 et seq.), American

Samoa, Guam, Wake Island, and Johnson Island are subject to the Contract Work

Hours and Safety Standards statute but are not subject to the Construction Wage Rate

Requirements statute. FAR Clause 52.222-4, Contract Work Hours and Safety

Standards – Overtime Compensation, shall be included in solicitations/contracts for

construction in these locations. NOTE: In accordance with the National Defense

Authorization Act of 2010, the Construction Wage Rate Requirements statute applies to

Guam realignment construction projects.

(b) Service contracts in excess of $150,000 for work that may require or involve the

employment of guards and watchmen, and/or laborers or mechanics where services will

be performed in the United States, the District of Columbia, Puerto Rico, the Virgin

Islands, Outer Continental Shelf Lands defined in the Outer Continental Shelf Lands Act

(43 U.S.C. 1331 et seq.), American Samoa, Guam, the Commonwealth of the Northern

Mariana Islands, Wake Island, and Johnson Island are subject to the Contract Work

Hours and Safety Standards and the Service Contract Labor Standards statutes.

SUBPART 22.4—LABOR STANDARDS FOR CONTRACTS INVOLVING

CONSTRUCTION

22.406 Administration and enforcement.

22.406-13 (DFARS) Semiannual enforcement reports.

(a) A semi-annual Labor Enforcement Report on compliance with and enforcement of

the Wage Rate Requirements (Construction) shall be prepared on NAVFAC Form

4350/1 (REV 03-15) and shall contain information regarding NAVFAC enforcement

actions during the periods 1 October to 31 March and 1 April to 30 September.

2018 Edition, through Change 1 issued 02 August 2019

(b) Echelon IV shall submit its report to Echelon III on 10 April and 10 October each

year. Echelon III activities shall submit its report to the Echelon II Command Labor

Advisor on 15 April and 15 October each year. The Echelon II Command Labor Advisor

will submit the report to the U.S. Department of Labor on 30 April and 30 October of

each year.

SUBPART 22.5—USE OF PROJECT LABOR AGREEMENTS FOR FEDERAL

CONSTRUCTION PROJECTS

22.503 (FAR) Policy

For each construction project of $25M or more, the Streamlined Acquisition Plan

(STRAP), NMCARS Annex 18 Paragraph 2.3.2 should also include the Contracting

Officer’s determination whether use of a Project Labor Agreement (PLA) is appropriate

for the project based on the criteria in FAR 22.503.

PART 23

ENVIRONMENT, ENERGY AND WATER EFFICIENCY, RENEWABLE ENERGY

TECHNOLOGIES, OCCUPATIONAL SAFETY, AND DRUG-FREE WORKPLACE

(RESERVED)

2018 Edition, through Change 1 issued 02 August 2019

PART 24

PROTECTION OF PRIVACY AND FREEDOM OF INFORMATION

SUBPART 24.2—FREEDOM OF INFORMATION ACT

24.203 Policy.

All Freedom of Information Act (FOIA) requests shall be coordinated through the

Echelon III/IV FOIA Coordinator.

2018 Edition, through Change 1 issued 02 August 2019

PART 25

FOREIGN ACQUISITION

SUBPART 25.1—BUY AMERICAN ACT-SUPPLIES

25.103 (DFARS) Exceptions.

(a) Public Interest.

(ii)(B)(2) Approval of the public interest determination for a procurement valued at

or below the simplified acquisition threshold (SAT) is a level above the Contracting

Officer. Approval of the public interest determination for procurements above the SAT

but less than $1,500,000 is the Head of Contracting Activity (HCA). Requests for HCA

approval shall be forwarded via the Echelon III/IV Chief of the Contracting Office (CCO)

and the appropriate Echelon II Division Director.

(ii)(B)(3) Approval of the public interest determination for procurements valued at

$1,500,000 or more is the agency head (Assistant Secretary of the Navy for Research,

Development and Acquisition (ASN(RDA)). Requests for approval shall be forwarded

via the Echelon III/IV CCO, the appropriate Echelon II Division Director, the Assistant

Commander for Acquisition, and the Deputy Assistant Secretary of the Navy for

Acquisition and Procurement (DASN(AP)).

(b) Nonavailability.

(ii)(C) Approval of the nonavailability determination for procurements valued at or

below the SAT is a level above the Contracting Officer. Approval of the determination

for procurements valued above the SAT but less than $1,500,000 is the Echelon III/IV

CCO. Approval of the determination for procurements valued at $1,500,000 or more is

the HCA. Requests for HCA approval shall be forwarded via the Echelon III/IV CCO and

the appropriate Echelon II Division Director. Upon approval, a copy of the determination

and findings (D&F) shall be submitted to the Defense Acquisition Regulations (DAR)

Council via DASN(AP) (see NMCARS 5225.103(b)(2)(ii)).

SUBPART 25.2—BUY AMERICAN ACT—CONSTRUCTION MATERIALS

25.202 (NMCARS) Exceptions.

(a)(2) Approval of the impractical or inconsistent with public interest determination for

procurements valued at or below the SAT is a level above the Contracting Officer.

Approval of the determination for procurements valued above the SAT but less than

$1,500,000 is the Echelon III/IV CCO. Approval of the determination for procurements

valued at $1,500,000 or more is the HCA. Requests for HCA approval shall be

forwarded via the Echelon III/IV CCO and the appropriate Echelon II Division Director.

SUBPART 25.4--TRADE AGREEMENTS

2018 Edition, through Change 1 issued 02 August 2019

25.401 (NMCARS) Exceptions

(a)(2)(A) The determination and findings to exclude an acquisition of a product from

the provisions of FAR subpart 25.4, must be submitted for approval by Under Secretary

of Defense for Acquisition and Sustainment (USD(A&S)). The determination must be

submitted with a copy of the approved Streamlined Acquisition Plan (STRAP) or

Management and Oversight Process for the Acquisition of Services – Streamlined

(MOPAS-S) via the Echelon III or IV CCO, the Assistant Commander for Acquisition via

the Echelon II Division Director, and via DASN(AP).

25.403 (NMCARS) World Trade Organization Government Procurement and Free

Trade Agreements.

(c)(ii) A request for a national interest waiver in the form of a determination and

findings must be submitted for approval by Under Secretary of Defense for Acquisition

and Sustainment (USD(A&S))/Director of Defense Pricing and Contracting (DPC). The

determination must be submitted with a copy of the approved Streamlined Acquisition

Plan (STRAP) or Management and Oversight Process for the Acquisition of Services –

Streamlined (MOPAS-S) via the Echelon III or IV CCO, the Assistant Commander for

Acquisition via the Echelon II Division Director, and via DASN(AP).

SUBPART 25.70—AUTHORIZATION ACTS, APPROPRIATION ACTS, AND OTHER

STATUTORY RESTRICTIONS ON FOREIGN ACQUISITIONS

25.7003 (DFARS) Restrictions on acquisition of specialty metals.

25.7003-3 (NMCARS) Exceptions.

(b)(2)(ii) By 7 October of each year, Echelon III activities shall submit an annual

Commercial Off the Shelf (COTS) Specialty Metal Exceptions Report for its area of

responsibility (AOR) to the Echelon II People, Process and Policy Director. NFAS

Appendix A summarizes all reporting requirements.

SUBPART 25.75—BALANCE OF PAYMENTS PROGRAM

25.7500 (DFARS) Policy.

Before solicitation, the determinations required by DFARS 225.7500 may be made

by the Echelon III Commanders/Commanding Officer. This authority may be delegated

no lower than the Echelon III 09/CCO and Echelon IV 00/09/CCOs.

PART 26

OTHER SOCIOECONOMIC PROGRAMS

(RESERVED)

PART 27

PATENTS, DATA, AND COPYRIGHTS

(RESERVED)

2018 Edition, through Change 1 issued 02 August 2019

PART 28

BONDS AND INSURANCE

SUBPART 28.1—BONDS AND OTHER FINANCIAL PROTECTIONS

28.101 Bid guarantees.

28.101-1 Policy on use.

(a) Annual bid bonds are not acceptable for construction contracts.

(b) Bid guarantees are not required on sole source construction contracts.

28.101-2 Solicitation provision or contract clause.

28.101-2-100 NAVFAC provisions or contract clauses.

(a)(1) In solicitations requiring the provision of FAR 52.228-1, Bid Guarantees,

paragraph (c) shall read, “The amount of the bid guarantee shall be 20 percent of the bid

price or $3,000,000, whichever is less.”

(2) For indefinite quantity solicitations with no seed project and JOC solicitations,

paragraph (c) of the FAR provision 52.228-1 shall read, “The amount of the bid

guarantee shall be the price payable for the contract guaranteed minimum.”

(3) For requirements solicitations, paragraph (c) of the FAR provision 52.228-1

shall read, "The amount of the bid guarantee shall be the price payable for the estimated

quantity."

(4) For Multiple Award Contracts (MAC) with a seed project, paragraph (c) of the

FAR provision 52.228-1 shall read, "The amount of the bid guarantee shall be 20 percent

of the bid price for the seed project or $3,000,000, whichever is less.”

28.102 Performance and payment bonds and alternative payment protections for

construction contracts.

28.102-1 General.

(a) Level III Contracting Officers may waive performance and payment bonds for work

in foreign countries.

(b) For contracts over $500,000, copies of the payment and performance bonds shall

be forwarded to the surety (not the agent's office) for authentication. A copy of this

request to the surety shall be sent to the contractor.

listed in FAR 28.204-1 and 28.204-2, shall be reviewed by NAVFAC Counsel prior to

inclusion in solicitations.

2018 Edition, through Change 1 issued 02 August 2019

(d) For environmental cost reimbursement contracts, if the Echelon III/IV Chief of the

Contracting Office (CCO) determines that bonds are required, the Contracting Officer

shall document in writing their rationale and basis for requiring bonding.

28.102-100 Performance and payment bonds for Multiple Award Contracts.

Performance and Payment Bonds for MACs are only required at the time of issuance

of a task order and shall not be required for the maximum value of the contract. The

bonds will be based on the amount of the task order and any subsequent modifications.

28.102-3-100 NAVFAC solicitation/contract language, Notice of Bonding

Requirements.

(a) In addition to the appropriate FAR Clause (52.228-15 Performance and Payment

Bonds -- Construction or 52.228-16 Performance and Payment Bonds - Other Than

Construction), use the following NAVFAC language entitled, “Notice of Bonding

Requirements,” in solicitations/contracts requiring performance and payment bonds.

The language should be included in Section H of solicitations using Uniform Contract

Format (UCF) or; for solicitations using the Construction Specifications Institute (CSI)

formats available in the Standard Procurement System (SPS), include the language in

Division 00800 of solicitations using the undated CSI format or if using the CSI 2012

format include the language in Division 00 73 00.

NOTICE OF BONDING REQUIREMENTS

Within _____ days after receipt of award, the bidder/offeror to whom the award is

made shall furnish the bonds required by FAR Clause __________ [Contracting Officer

to insert appropriate FAR Clause number either 52.228-15 or 52.228-16].

Bidders/offerors are hereby notified that the contract time for purposes of fixing the

completion date, default, and liquidated damages will be as stated in FAR Clause

52.211-10 Commencement, Prosecution, and Completion of Work, regardless of when

performance and payment bonds or deposits in lieu of surety are executed.

(End of NAVFAC language)

28.102-3-101 Alternative Protection for Construction in a foreign country.

(a) In some overseas jurisdictions it has proven impracticable to require a contractor

to furnish a bond for solicitations/contracts, for example, because it is inconsistent with

standard industry practices in these countries.

(b) FAR 28.102-1(a) permits the Contracting Officer to waive submittal of

performance and payment bonds for as much of the work as is to be performed in a

foreign country upon finding that it is impracticable for the contractor to furnish such

bond. Accordingly, when such a finding has been made, alternative forms of protection

may be used to protect government interests, consistent with local conditions, to the

maximum extent practicable. Appropriate contract language to effectuate such

alternative forms of protection may be used in lieu of FAR 52.228-15, FAR 52.228-16,

and the NAVFAC language, “Notice of Bonding Requirements,” described in Section

28.102-3-100 above. Such alternative language should be included in Section H of

2018 Edition, through Change 1 issued 02 August 2019

solicitations using Uniform Contract Format (UCF) or; for solicitations using the CSI

formats available in SPS, include the language in Division 00800 of solicitations using

the undated CSI format or, if using the CSI 2012 format, include the language in Division

00 73 00. The Chief of the Contracting Office, in consultation with NAVFAC Counsel,

may prescribe appropriate contractual language and procedures for construction in

foreign countries under their area of responsibility.

28.103 Performance and payment bonds for other than construction contracts.

28.103-1 General.

(a) Bid, performance, and payment bonds shall not be required for facilities support

service contracts estimated to be awarded at less than the simplified acquisition

threshold (SAT) or awarded pursuant to Section 8(a) of the Small Business Act.

(b) A written determination by the Echelon III/IV CCO is required prior to including

bonds for other than construction contracts. The determination must specifically address

the requirement for bonds that exceed 25 percent of the contract award amount.

28.103-2 Bonds or other security for dismantling, demolition, or removal of

improvements.

Contracts for dismantling, demolition, or removal of improvements, see NFAS 37.302

for bonding requirements

28.106 Administration.

28.106-2 Substitution of surety bonds.

A Level III Contracting Officer approval is required prior to substituting the original

bond with a new surety bond covering all or part of the obligations on the previously

approved bond.

SUBPART 28.2—SURETIES AND OTHER SECURITY FOR BONDS

28.203 Acceptability of individual sureties.

The Contracting Officer shall submit documentation in support of individuals

proposed as sureties to NAVFAC Counsel for review prior to making a determination of

acceptability.

SUBPART 28.3—INSURANCE

28.306 Insurance under fixed-price contracts.

(a) Contractors shall not be required to provide insurance coverage on government

owned/furnished equipment and materials without Echelon III/IV CCO approval. This

authority may not be redelegated.

(b) Contracts requiring work on government property and which include

transportation or transportation related services shall specify insurance coverage as

2018 Edition, through Change 1 issued 02 August 2019

required by state and local laws or by FAR 28.307-2, whichever results in higher

coverage. On a case-by-case basis, Level III Contracting Officers are authorized to

specify higher coverage.

2018 Edition, through Change 1 issued 02 August 2019

PART 29

TAXES

SUBPART 29.4—CONTRACT CLAUSES

29.402 Foreign contracts.

29.402-100 NAVFAC requirement for solicitation/contracts when work will be

performed at U.S. installations in Japan.

(a)(1) Article XII of the “Agreement Under Article VI of the Treaty of Mutual

Cooperation And Security Between Japan and the United States of America Regarding

Facilities and Areas and the Status of United States Armed Forces in Japan,” exempts

materials, supplies, equipment and services procured for official purposes in Japan by

the United States armed forces, or by authorized procurement agencies of the United

States armed forces from the following Japanese taxes: (1) Commodity tax, (2)

Travelling tax, (3) Gasoline tax, and (4) Electricity and gas tax. United States Forces,

Japan (USFJ) Instruction 51-5 prescribes procedures for obtaining exemption from

certain Japanese taxes in connection with official procurement in Japan by the U.S.

armed forces.

29.402-101 NAVFAC Solicitation/contract language, Consumption Tax Exemption

Procedures on Purchase of Goods and Services by the United States Armed

Forces in Japan.

Include the following requirement entitled, “Consumption Tax Exemption Procedures

on Purchases of Goods and Services by the United States Armed Forces in Japan

(Japanese Law No. 108, 1988),” in solicitations/contracts when work will be performed at

U.S. installations in Japan. This requirement is in addition to FAR clause 52.229-6,

Taxes – Foreign Fixed-Price Contracts. The language should be included in Section H

of solicitations using Uniform Contract Format (UCF) or in Division 00600 of solicitations

using Construction Specifications Institute (CSI) format.

CONSUMPTION TAX EXEMPTION PROCEDURES ON PURCHASE OF GOODS

AND SERVICES BY THE UNITED STATES ARMED FORCES IN JAPAN

[JAPANESE LAW NO. 108, 1988]

(a) The Consumption Tax Law (Law No. 108, 1988) was enacted in the Diet of Japan

on 24 December 1988, and applied from April 1, 1989. The Government of Japan (GOJ)

and the United States Government (USG), in accordance with paragraph 3, Article XII, of

the "Agreement Under Article VI of the Treaty of Mutual Cooperation And Security

Between Japan And The United States of America Regarding Facilities And Areas And

The Status of United States Armed Forces In Japan,” (SOFA) have agreed upon

procedures for exempting the United States from the Japanese Consumption Tax on

goods and services purchased in Japan for official purposes of the U. S. Armed Forces

by the U. S. Armed Forces or its authorized procurement agencies.

(b) The underlying objective is to obtain the full amount of the exemption from the tax

on U.S. Forces procurements immediately at the time of purchase and at the same time

provide the Contractor a proof of purchase document, acceptable to GOJ tax authorities,

2018 Edition, through Change 1 issued 02 August 2019

which he/she can present to the tax authorities to obtain a tax credit and/or refund for tax

already collected and paid by previous sellers.

contractors, but also subcontractors or suppliers at every level regardless of the

nationality of the prime contractor whether a Japanese or foreign firm.

(d) By the submission of their offer, the offeror certifies that the Japanese

Consumption Tax is not included in the bid/proposal/quote price, nor will it be a part of

any subsequent modification to the contract. Procedures for Contractors to obtain a

consumption tax credit are described in USFJ Instruction 51-5 that may be obtained from

the Procuring Contracting Office.

(End of NAVFAC Language)

2018 Edition, through Change 1 issued 02 August 2019

PART 30

COST ACCOUNTING STANDARDS ADMINISTRATION

SUBPART 30.2 – CAS PROGRAM REQUIREMENTS

30.201-5 (NMCARS) Waiver.

(b) A request for a Head of the Contracting Activity (HCA) determination to grant a CAS

Waiver for a contract or subcontract that is less than $15M, must be submitted via the

Echelon III or IV Chief of the Contracting Office (CCO), and the Assistant Commander

for Acquisition via the Echelon II Division Director. Requests for Defense Pricing and

Contracting (DPC) approval on CAS Waivers for a contract or subcontract that is $15M

or more, must be submitted at least 60 days prior to anticipated award via the Echelon III

or IV CCO, and the Assistant Commander for Acquisition via the Echelon II Division

Director and Deputy Assistant Secretary of the Navy for Acquisition and Procurement

(DASN(AP)).

(e) Reports. Echelon IIIs shall consolidate and submit an annual report of all CAS

Waivers to the Echelon II People, Process and Policy Director for their area of

responsibility (AOR), by 1 November. NFAS Appendix A summarizes all reporting

requirements.

PART 31

CONTRACT COST PRINCIPLES AND PROCEDURES

(RESERVED)

2018 Edition, through Change 1 issued 02 August 2019

PART 32

CONTRACT FINANCING

SUBPART 32.1—NON-COMMERCIAL ITEM PURCHASE FINANCING

32.112 Nonpayment of subcontractors under contracts for non-commercial items.

32.112-1 Subcontractor assertions of nonpayment.

The contract file shall contain documentation of all actions taken, results, and all

efforts made by the Contracting Officer to facilitate the payment of subcontractors.

SUBPART 32.6—CONTRACT DEBTS

32.604 Demand for payment.

(b)(5)(ii) Payments made by check for contract debt arising from a default

termination/overpayment shall be payable to the “U.S. Treasury.” Upon receipt, the

Contracting Officer shall forward the check to the cognizant Defense Finance and

Accounting Officer. Alternate debt payment methods may be available for use by

contractors and can be determined at:

https://www.dfas.mil/contractorsvendors/governmentremittance/returnfunds.html

(f) The contract file must remain open until the debt is collected.

32.607-1 Installment Payment

(a) In the case of requests for an installment payment agreements that will liquidate

the debt in less than three years, the Echelon III/IV Chief of the Contracting Office

(CCO) is the debt collection official (DCO) for debts due under contracts within

their area of responsibility (AOR).

(b) Upon receipt of a contractor’s written request for an installment payment

agreement, the Contracting Officer shall perform an initial evaluation of the

contractor’s justification in accordance with FAR 32.607 and DoD FMR

(Volume

16, Chapters 2 and 5), and provide a recommendation to the Echelon III/IV CCO.

32.607-2 Deferment of collection.

(c)(2)(e) The Contracting Officer shall forward requests for deferment of contract

debts to the Echelon III/IV CCO.

(f) The Echelon III/IV CCO shall submit an evaluation of the contractor’s

request along with the necessary supporting information (e.g. financial condition, small

business concern representation, the final decision, the appeal, status of appeal, etc.),

and a recommendation including the basis of that recommendation regarding the

advisability of deferment. This information shall be submitted to the appropriate Echelon

II Division Director for forwarding to the Assistant Secretary of the Navy (Financial

Management & Comptroller) via Deputy Secretary of the Navy for Acquisition and

2018 Edition, through Change 1 issued 02 August 2019

Procurement (DASN(AP)). Collection of the debt should continue until the date the

deferment is granted.

SUBPART 32.7—CONTRACT FUNDING

32.702 Policy.

(a) Based on the customer and project history, Contracting Officers may use their

own discretion in requiring actual funds in hand before issuing solicitations or Requests

for Proposals (RFPs) for delivery/task orders or modifications. For actions above the

Simplified Acquisition Threshold (SAT), an intent to fund (i.e. commitment of funds,

promise to pay, letter of intent) or actual funding is required prior to solicitation. For

actions below the SAT, the Program/Project Manager remains responsible for validation

of funds availability and communicating this to the Contracting Officer.

(1) For construction execution of petroleum, oil and lubricants (POL) tanks

under the Clean, Inspect, Repair (CIR) process only, the Tank

Requirements Repair (TRR) form can be used as a promise to pay if

signed by the requestor’s financial management or comptroller

representative.

(b) Except for Military Construction Appropriation Act (MILCON), when making an in

scope change on construction contracts in a fiscal year other than the year of award you

must determine whether fiscal year funds from the year of award or current fiscal year

funding can be used to finance a change to the contract. Contracting Officers in concert

with counsel shall provide an analysis as to whether the obligation to pay is a pre-

existing duty arising out of the terms of the contract at time of award, or new/additional

work that is in scope and needed by the customer for a complete and useable facility but

work which may/should be paid with current year funds.

commitments and obligations, all purchase requests (PR) received must include a four-

digit Product Service Code (PSC) at a line item level of detail. PSCs will be established

by requiring activities for each PR line item so that it can be linked at the point of

commitment to the Object Class recorded in the accounting system.

SUBPART 32.8—ASSIGNMENT OF CLAIMS

32.803 Policies.

When a payment is made under an assigned contract, the contractor shall

immediately be told the date and amount of all payments.

32.805 Procedure.

(a) The Contracting Officer shall obtain review comments from NAVFAC Counsel on

all assignment of claims.

(b) A release shall be obtained from both the assignee and the contractor prior to

final payment.

2018 Edition, through Change 1 issued 02 August 2019

SUBPART 32.11—FINAL PAYMENT

32.1100 Final payment for construction and architect-engineer contracts.

(a) If the contract payment is assigned, an assignee's release of claims (NAVFAC

Form 4330/14) is required. All final vouchers shall reflect the status of liquidated

damages. A contractor's final release on NAVFAC Form 4330/7 is required and shall

reflect the total contract price, amounts previously paid, and the amount of the final

voucher.

(b) For contracts where the contractor pays the government, NAVFAC Form 4330/7

should be modified by deleting the first seven lines and replacing it with the following:

"In consideration of the premise and the receipt of all material as set

forth in the specification under the above-mentioned contract, the

undersigned contractor does and by the receipt of said material

shall.....”

(d) When a release contains an exception that the Contracting Officer considers

acceptable, the following notation shall be placed on the release:

"Release approved by Contracting Officer this

___________ day of ____(Month/Year) ___

___________________________________

(signature)”

(e) To close out contracts one year after completion and acceptance of the work

when the contractor fails to execute an appropriate release, the Contracting Officer shall

send a letter to the contractor, certified mail return receipt, requesting submission of a

final invoice in Wide Area Workflow (WAWF) and a valid final release. Any surety

should also be provided with this notification. Thirty days after the return of the certified

mail receipt, the Contracting Officer may close out the contract. If the contractor refuses

to respond to or accept the certified letter or cannot be located, the Contracting Officer

may deobligate the contract balance and close out the contract.

SUBPART 32.70 – ELECTRONIC SUBMISSION AND PROCESSING OF PAYMENT

REQUESTS AND RECEIVING REPORTS

32.7002 (NMCARS) Policy.

(a) Prior to determining that electronic submission of payment requests and receiving

reports would be unduly burdensome to the contractor, approval shall be obtained from

DASN(AP). The request for DASN(AP) approval shall be forwarded via the Echelon III

or IV CCO and the Assistant Commander for Acquisition via the Echelon II Division

Director.

2018 Edition, through Change 1 issued 02 August 2019

PART 33

PROTESTS, DISPUTES, AND APPEALS

SUBPART 33.1—PROTESTS

33.103 (NMCARS) Protests to the agency.

All agency level protests received by any NAVFAC contracting office shall be subject

to administrative review.

(a) Protests received on solicitations advertised at Echelon IV field contracting

activities (i.e. Facilities Engineering and Acquisition Divisions/Resident Officer in Charge

of Construction (FEADs/ROICCs) shall be reviewed by the cognizant Echelon IV Chief of

the Contracting Office (CCO).

33.104 (NMCARS) Protests to GAO.

Upon receipt of contractor notification, the contracting location designated in the

solicitation shall notify the appropriate Echelon II Division Director and NAVFAC

Headquarter (HQ) Counsel, with a copy to the Echelon III CCO.

33.170 (NMCARS) Briefing requirement for protested acquisitions valued at

$1 billion or more.

Echelon III/IV CCOs shall submit the notice to the appropriate Echelon II Division

Director via the Echelon III CCO prior to submitting the report to Deputy Assistant

Secretary of the Navy for Acquisition and Procurement (DASN(AP)) not later than 3 days

after receipt of the protest.

SUBPART 33.2—DISPUTES AND APPEALS

33.211 Contracting Officer’s decision.

(a) Personnel who, at the request of NAVFAC Counsel, prepare memoranda or

notes concerning a claim shall place a legend on each page as follows:

"ATTORNEY-CLIENT PRIVILEGE FOR OFFICIAL USE

ONLY: This document is prepared for use by government or

attorneys in connection with a contractor's claim. It is not to

be released outside the government or to government

personnel not having a need to know."

(b) A log shall be maintained of all claims received.

shall consolidate the information for its area of responsibility (AOR) and submit a report

by 31 October via email to the Echelon II People, Process and Policy Director. NFAS

Appendix A summarizes all reporting requirements.

2018 Edition, through Change 1 issued 02 August 2019

33.214 Alternative dispute resolution (ADR).

NAVFAC encourages ADR as a means of resolving disputes. Echelon III activities

shall establish appropriate procedures for their utilization.

33.214-100 Disputes resolution board (DRB).

The Board shall be chaired by a representative from the contracts office and have at

least one technical and one legal representative.

33.2100 Remand by NAVFAC for settlement by negotiation.

(a) A memorandum of negotiations shall be prepared to support a negotiated

settlement.

(b) If a settlement cannot be reached, a report shall be prepared setting forth-specific

reasons why an agreement could not be reached and the claim package returned to the

appropriate Echelon II Division Director.

SUBPART 33.90—PROCEDURES (NMCARS)

33.9001 Claims approval requirements.

(a) Proposed claim settlements and final decisions of the Contracting Officer shall be

reviewed and approved—

(1) For claims up to $25M by a Level III Contracting Officer with in-house

NAVFAC Counsel support and CCO review.

(2) For claims over $25M by DASN(AP). The Contracting Officer shall follow

NMCARS 5233.9001 process with in-house NAVFAC Counsel support and CCO review.

Requests for DASN(AP) review/approval shall be submitted via appropriate Echelon II

Division Director.

(b) For claims over $5,000,000, the Contracting Officer shall:

(1) Notify the appropriate Echelon II Division Director via the Echelon III CCO

within 10 days of receipt. Include the projected final decision date which shall include 14

days for the appropriate Echelon II and III Division Director review and concurrence of

the draft Final Decision letter.

(2) The Contracting Officer shall provide a signed copy of the Final Decision

letter to the CCO and appropriate Echelon II Division Director via the Echelon III CCO.

PART 34

MAJOR SYSTEM ACQUISITION

(RESERVED)

PART 35

RESEARCH AND DEVELOPMENT CONTRACTING

(RESERVED)

2018 Edition, through Change 1 issued 02 August 2019

PART 36

CONSTRUCTION AND ARCHITECT-ENGINEER CONTRACTS

SUBPART 36.2—SPECIAL ASPECTS OF CONTRACTING FOR CONSTRUCTION

36.201 (FAR/DFARS) Evaluation of contractor performance.

See NFAS 42.1503 for general guidance on preparation and distribution of

construction contractor performance evaluations.

36.202 Construction Specification Institute (CSI) format.

Contracts for construction shall be prepared in the CSI format. Document Sections

(00xxx) contain the contractual requirements and General Requirements Sections

(01xxx) contain the administrative requirements.

36.205 Statutory cost limitations.

When more than one project is included in a single contract, and the estimated cost

of the contract is over the current statutory cost limitation for unspecified minor

construction (less estimated Supervision, Inspection and Overhead (SIOH)), the

solicitation documents shall require the projects to be separately priced and contain a

certification that the price for each project includes an approximate apportionment of all

estimated direct cost, allocable indirect costs, and profit. The solicitation must state the

applicable cost limitation for each affected item in a separate schedule.

36.207 Pricing fixed-price construction contracts.

For fixed-price construction line items, Contracting Officers may use Project, Task, or

Job as units of measure.

36.213 Special procedures for sealed bidding in construction contracting.

36.213-3 Invitations for bids.

36.213-3-101 Budgeted amount.

For construction of family housing projects, the solicitation shall contain the budgeted

amount.

36.213-70 (DFARS) Additive or deductive items.

A Level III Contracting Officer’s approval is required prior to issuing a solicitation

including more than four additive bid items.

36.215 Special procedure for cost-reimbursement contracts for construction.

Refer to the Capital Improvements Business Line for guidance on cost-

reimbursement construction contracts.

2018 Edition, through Change 1 issued 02 August 2019

36.2100 Environmental remedial action contracts.

For guidance, see Environmental Cost Reimbursement Contract Manual P-1160

36.2102 Non-appropriated funded (NAF) contracts.

(a) Requests to waive FAR procedures for solicitations funded from non-appropriated

sources shall be approved by the Echelon III/IV Commander. This authority may be

redelegated no lower than the Echelon III/IV

Chief of the Contracting Office (CCO).

Each request must identify the FAR provisions to be waived, the criteria to be used to

select firms who will be given the opportunity to submit bids or proposals if other than full

and open competition is to be used and the rationale why the identified waivers from the

FAR make prudent business sense. All documentation related to each approved

request shall be retained in the contract file.

(b) If combining appropriated and non-appropriated funding under one

solicitation/contract, FAR provisions cannot be waived.

solicitation, must be given an opportunity to participate.

SUBPART 36.3—TWO-PHASE DESIGN-BUILD SELECTION PROCEDURES

36.303-1-100 Phase One.

(a) The only documentation required after completion of Phase One evaluations are

the Source Selection Evaluation Board/Source Selection Advisory Council/Source

Selection Authority (SSEB/SSAC/SSA) Documents/Decisions if no discussions are

conducted with the offerors. In this case, a Pre-Business or Pre/Post Business

Clearance is required after Phase Two. However, if it is determined that it is necessary

to conduct discussions after the evaluation of proposals in Phase One, a Pre-Business

Clearance is required in Phase One.

(b) The number and identity of the most highly qualified offerors selected to submit

Phase Two proposals are considered "Source Selection Information" as defined in FAR

2.101, and shall only be disclosed to persons specifically granted access to source

selection sensitive information.

SUBPART 36.5—CONTRACT LANGUAGE

36.5-100 NAVFAC solicitation/contract language, Utilities for Construction and

Testing.

Use the following language entitled, “Utilities for Construction and Testing,” in fixed-

priced solicitations/contracts for construction, dismantling, demolition or removal of

improvements when utilities are to be contractor-furnished. This language should be

used in lieu of FAR Clause 52.236-14, Availability and Use of Utility Services. The

language should be included in Division 00800 of solicitations using the undated

Construction Specifications Institute (CSI) format available in the Standard Procurement

System (SPS) or, if using the CSI 2012 format, include the language in Division 00 73

00.

2018 Edition, through Change 1 issued 02 August 2019

UTILITIES FOR CONSTRUCTION AND TESTING

The Contractor shall be responsible for obtaining, either from available Government

sources or local utility companies, all utilities required for construction and testing. The

Contractor shall provide these utilities at his expense, paid for at the current utility rate

delivered to the job site. The Contractor shall provide and maintain all temporary utility

connections and distribution lines, and all meters required to measure the amount of

each utility used.

(End of NAVFAC language)

36.5-101 Instructions for use of NAVFAC language.

(a) Use the language, “Authority,” at NFAS 1.602-1-101 in all construction

solicitations/contracts.

(b) Use the language, “PHASED CONSTRUCTION SCHEDULE,” at NFAS 11.404-

100 in construction solicitations/contracts that require use of a phased construction

schedule. The NAVFAC language should be used in conjunction with FAR Clause

52.211-12, Liquidated Damages—Construction.

solicitations where offers are solicited on an all or none basis.

(d) Use the language, “NOTICE OF BONDING REQUIREMENTS,” at NFAS 28.102-

3-100 in construction solicitations requiring bonds. The language should be used in

conjunction with FAR Clause 52.228-15, Performance and Payment Bonds –

Construction.

(e) Use the language, “Consumption Tax Exemption Procedures on Purchase of

Goods and Services by the United States Armed Forces in Japan [Japanese Law No.

108, 1988],” in all construction solicitations in Japan. This language should be used in

addition to FAR 52.229-6, Taxes – Foreign Fixed-Price Contracts.

(f) Use the language, “Utilities for Construction and Testing,” at NFAS 36.5-100 in

solicitations/contracts for construction, dismantling, demolition or removal of

improvements when utilities are to be contractor-furnished. This language should be

used in lieu of FAR 52.236-14 Availability and Use of Utility Services.

36.5100 NAVFAC provision and contract clauses.

(a) Use the DFARS Clause 252.236-7003 or 252.236-7004 as required for

solicitations/contracts that use a separate bid item for mobilization and preparatory work.

SUBPART 36.6—ARCHITECT-ENGINEER SERVICES

36.601 Policy.

36.601-3 Applicable contracting procedures.

2018 Edition, through Change 1 issued 02 August 2019

36.601-3-100 Indefinite quantity architect-engineer contracts.

(a) See NFAS 17.202-102 for use of options/phases.

(b) Projects under these contracts shall be restricted to the locations designated in

the contracts. Parallel contracts with the same statement of architect-engineer (A-E)

services shall not be used except when using multiple award contract procedures.

II Division Director approval. Contract task order requirements must be competed using

a streamlined A-E selection process. Once a multiple award contract is awarded, any

decision not to compete a task order requirement must be approved by the appropriate

Competition Advocate (see NFAS 6.501).

(d) The contract term shall not exceed five years, including options. The Contracting

Officer shall make the requisite pre-award and post-award determinations required by

FAR 17.205 and FAR 17.207. See NFAS 17.202-102.

(e) The contract amount is the maximum "Not to exceed" amount.

(f) The total estimated dollar value of the contract, including any option year, shall be

used as the threshold for certified cost or pricing data, field pricing reports (Defense

Contract Audit Agency (DCAA) audit) and business clearance approval requirements.

(g) Prepriced options for construction support may be included in task orders, but the

exercise period shall not exceed eighteen months from final design without Echelon III/IV

CCO approval. This approval authority may not be redelegated.

(h) See NAVFAC P-1160, Environmental Cost Reimbursement Manual

, for guidance

on environmental cost reimbursement contracts.

36.602 Selection of firms for architect-engineer contracts.

36.602-1 Selection criteria.

The A-E firm's experience in sustainable design and their quality control program

shall be evaluated during selection.

36.602-2 Evaluation boards.

(a) Engineers/Architects serving on boards for contracts which include engineering,

design, construction or oversight of engineering, design and construction shall be

registered professionals unless a waiver is granted pursuant to NAVFACINST 3540.1D,

dated 22 February 2019. Contracting Officers shall not appoint NAVFAC

Engineers/Architects as board members unless they are licensed or have been granted

a waiver by the appropriate authority. All NAVFAC members of the board shall have

successfully completed CTC 466. The licensing requirements for the chairperson shall

not be waived under any circumstances. In cases where board members are individuals

outside of NAVFAC, their equivalent training (for CTC 466) will be approved by the CCO

on a case-by-case basis.

2018 Edition, through Change 1 issued 02 August 2019

(b) Chairpersons shall have experience serving on A-E selection boards and shall

have been briefed by the Contracting Officer and NAVFAC Counsel concerning

procurement rules and ethics.

boards, evaluation boards, or evaluation teams for contracts that do NOT involve

engineering, design, construction or any oversight of design, engineering or

construction.

36.602-3 Evaluation board recommendations.

Board recommendations are considered source selection information and should be

safeguarded from unauthorized disclosure.

36.602-4 Selection authority.

Whenever the estimated total contract value exceeds $100M, slate/selection board

reports shall be forwarded via the Echelon III/IV CCO to the appropriate Echelon II

Division Director for approval. When the total contract value is under $100M,

Contracting Officers with appropriate warrant authority shall approve such reports in

accordance with Echelon III/IV procedures.

36.602-5 Short selection process for contracts not to exceed the simplified

acquisition threshold.

Contracting Officers are authorized to use the short selection processes described in

FAR Subpart 36.602-5. Firms shall be identified and evaluated exclusively from SF-

330’s submitted or currently on file.

36.604 Performance evaluation.

See NFAS 42.1503 for guidance on the preparation and distribution of performance

evaluation reports.

36.605 Government cost estimate for architect-engineer work.

For work exceeding the simplified acquisition threshold (SAT), the independent

government estimate (IGE) shall be provided to the Contracting Officer prior to receipt of

a firm's proposal.

36.606 Negotiations.

A firm shall be requested to provide as part of their proposal separate prices for

preparation of plans and specifications and for engineering services.

36.607 Release of information on firm selection.

See U.S. Code 10, Sec. 2807 for clearance requirements for 2807 Notification for

MILCON and Family Housing projects.

2018 Edition, through Change 1 issued 02 August 2019

36.608 Liability for Government costs resulting from design errors or deficiencies.

(a) Whenever there is a modification to a construction contract resulting from a

design deficiency in plans or specifications, the Contracting Officer shall make a written

determination of the extent to which the A-E firm may be responsible for such design

deficiency and whether any increased costs resulting from such design deficiency shall

be assessed against the A-E firm. The determination and subsequent action shall be

documented in the contract file.

(b) Where possible A-E liability is not pursued, the Contracting Officer’s reasons

supporting this decision shall be documented in the contract file.

compensation for the additional work performed by the contractor, a modification may be

issued by the Contracting Officer to extend the time for contract completion under the

construction contract.

36.609-100 Instructions for use of NAVFAC language.

(a) Use the language, “Authority,” at NFAS 1.602-1-101 in all architect-engineer

solicitations/contracts.

(b) Use the language, “Minimum and Maximum Fees [Architect-Engineer Indefinite

Quantity Contracts],” at NFAS 16.504-100(a) in architect-engineer indefinite quantity

contracts where the initial project will represent the contract minimum. The language

should be included in Section H of solicitations using Uniform Contract Format (UCF) or;

for solicitations using the CSI formats available in SPS, include the language in Division

00800 of solicitations using the undated CSI format or, if using the CSI 2012 format,

include the language in Division 00 73 00.

Quantity Contracts],” at NFAS 16.504-100(b) in architect-engineer indefinite quantity

contracts where the contract minimum is established by a dollar value and not the initial

project. The language should be included in Section H of solicitations using Uniform

Contract Format (UCF) or; for solicitations using the CSI formats available in SPS,

include the language in Division 00800 of solicitations using the undated CSI format or, if

using the CSI 2012 format, include the language in Division 00 73 00.

(d) Use the language, “Consumption Tax Exemption Procedures on Purchase of

Goods and Services by the United States Armed Forces in Japan [Japanese Law No.

108, 1988],” in all architect-engineer solicitations for services in Japan. This language

should be used in addition to FAR 52.229-6, Taxes – Foreign Fixed-Price Contracts.

(e) Use the language, “Drawings Prepared by an Architect-Engineer,” at NFAS

36.609-101 in all architect engineer solicitations/contracts to be performed outside the

United States. The language should be included in Section H of solicitations using

Uniform Contract Format (UCF) or; for solicitations using the CSI formats available in

SPS, include the language in Division 00800 of solicitations using the undated CSI

format or, if using the CSI 2012 format, include the language in Division 00 73 00.

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100

(f) Use the language, “Key Personnel,” at NFAS 36.609-102 in architect engineer

solicitations/contracts when contractor personnel are key for performance and/or were a

factor in the selection process. The language should be included in Section H of

solicitations using Uniform Contract Format (UCF) or; for solicitations using the CSI

formats available in SPS, include the language in Division 00800 of solicitations using

the undated CSI format or, if using the CSI 2012 format, include the language in Division

00 73 00.

36.609-101 NAVFAC solicitation/contract language, Drawings Prepared by an

Architect-Engineer.

Use the following language entitled, “Drawings Prepared by an Architect-Engineer,”

in all architect-engineer solicitations/contracts to be performed outside the United States.

The language should be included in Section H of solicitations using Uniform Contract

Format (UCF) or; for solicitations using the CSI formats available in SPS, include the

language in Division 00800 of solicitations using the undated CSI format or, if using the

CSI 2012 format, include the language in Division 00 73 00.

DRAWINGS PREPARED BY AN ARCHITECT-ENGINEER

The engineer or architect signing the drawings must be registered in the country of

record for the architect-engineer firm or the country of the proposed construction -- as a

Professional Engineer (P.E.) or Registered Architect (R.A.). In addition, the drawings

shall be signed by a responsible person of corporate status in the architect-engineer firm

and stamped with his/her registration seal when the seal is authorized by the country

where the project is to be constructed.

(End of NAVFAC language)

36.609-102 NAVFAC solicitation/contract language, Key Personnel.

Use the following language entitled, “Key Personnel,” in architect-engineer

solicitations/contracts when contractor personnel are key for performance of the contract

and/or were a factor in the selection process. The language should be included in

Section H of solicitations using Uniform Contract Format (UCF) or; for solicitations using

the CSI formats available in SPS, include the language in Division 00800 of solicitations

using the undated CSI format or, if using the CSI 2012 format, include the language in

Division 00 73 00.

KEY PERSONNEL

The Architect-Engineer (A-E) shall employ the following professional personnel to

perform the services required under this contract. Prior to starting work, the A-E will

forward to the Contracting Officer a resume for the individual(s) assigned to each

discipline to be utilized. No substitution will be made without the advance written

approval of the Contracting Officer, after he has reviewed the proposed replacement's

experience and qualifications record submitted by the architect-engineer firm with

explanation of the necessity for the change. No increase in salary rates will be allowed

when personnel substitution is authorized.

DISCIPLINE NAME JOB TITLE

(End of NAVFAC language)

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101

36.6100 Inspection services.

(a) General construction inspection services by the A-E firm are only permitted when

all the general inspection required for the job is procured through contract; however,

specialty inspection services that require specialized knowledge/experience/skills may

be obtained by contract even when the general inspection services are not.

(b) Inspectors may be used to check contractor compliance with labor standards

provisions provided such duties are restricted to checking and making reports to the

Contracting Officer.

(CLEAN) contracts, the inspection services may be compensated through a cost

reimbursement contract.

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102

PART 37

SERVICE CONTRACTING

SUBPART 37.1—SERVICE CONTRACTS—GENERAL

37.102-100 Policy – Government Estimate of Services cost

(a) An independent Government estimate (IGE) of services cost shall be prepared

and furnished to the Contracting Officer, prior to receipt of any proposals, and at the

earliest practicable time for contract actions anticipated to exceed the simplified

acquisition threshold (SAT). The Contracting Officer may require an IGE when the cost

of required work is not anticipated to exceed the SAT. The IGE shall be prepared in as

much detail as though the Government were competing for award and shall include a

basis of estimate, such as the source for quantities, labor rates, indirect rates, and profit.

The IGE shall be signed and dated by the personnel who prepared the IGE. The

Contracting Officer’s Representative (COR) or technical requirements generator is

responsible for preparing the IGE. The COR or technical requirements generator may

find the general guidance related to development of IGEs in the Department of Defense

COR Handbook useful when preparing the required IGE.

(b) Access to information concerning the IGE shall be limited to Government

personnel whose official duties require knowledge of the IGE. An exception to this rule

may be made during contract negotiations to allow the Contracting Officer to identify a

specialized task and disclose the associated cost breakdown figures in the IGE, but only

to the extent deemed necessary to arrive at a fair and reasonable price. The overall

amount of the IGE shall not be disclosed except as permitted by agency regulations.

37.103-100 Contracting Officer responsibility.

The Contracting Officer shall consider SeaPort for use when procuring Engineering

Services (not those procured under the Selection of Architects and Engineers statute)

and/or Program Management Services (see NMCARS Annex 22) unless an exception

applies (see NMCARS 5237.102). [This includes issuance of task orders under existing

IDIQ contracts – see NFAS 16.505-100]. If SeaPort is not used and the requirement is

not excepted, a determination and findings (D&F) shall be submitted for approval by

Deputy Assistant Secretary of the Navy for Acquisition and Procurement (DASN(AP)).

The D&F shall be submitted via the Echelon III/IV Chief of the Contracting Office (CCO),

the appropriate Echelon II Division Director and the Assistant Commander for

Acquisition.

37.110 Solicitation provisions and contract clauses.

Use FAR clause 52.237-3, Continuity of Services in all NAVFAC knowledge based services

(KBS) contracts.

37.110-100 NAVFAC solicitation/contract language, Substitutions of Key Personnel.

Use the following language entitled, “Substitutions of Key Personnel,” in service contracts

when personnel are key to performance of the contract and/or were a factor in the selection

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103

process. The language should be included in Section H of solicitations using Uniform Contract

Format (UCF).

SUBSTITUTIONS OF KEY PERSONNEL

The Contractor shall provide complete resumes for proposed substitutes, and any additional

information requested by the Contracting Officer. Proposed substitutes should have comparable

qualifications to those of the persons being replaced. The Contracting Officer will notify the

Contractor within 15 days after receipt of all required information of the consent on substitutes.

No change in unit prices may occur as a result of key personnel substitution.

(End of NAVFAC language)

37.192 Service Acquisition Workshops (SAWs)

(a) Multi-functional teams for service acquisitions, excluding construction, with a total

estimated value (including options) of $500M or more or an annual value of $250M or more,

shall participate in a SAW or equivalent program. Procuring Contracting Officers/Chief of the

Contracting Office (PCO/CCOs) shall notify the cognizant Echelon II Division Director that a

SAW is anticipated. The Echelon II Division Director/Assistant Commander for

Acquisition/Deputy Director for Acquisition shall determine the appropriate course of action. If

determined appropriate, a SAW is required before a services Streamlined Acquisition Plan

(STRAP) will be approved. The SAW should be requested as soon as the requirement has

been identified.

(b) If the Assistant Commander for Acquisition/Deputy Director for Acquisition determines

that a waiver of a SAW is necessary, the procedures in NMCARS 5237.192 shall be completed

before the STRAP is approved.

SUBPART 37.2—ADVISORY AND ASSISTANCE SERVICES

37.203 Policy.

37.203-100 Required approval.

Prior to contracting for Advisory and Assistance Services using NAVFAC line of

accounting, approval shall be obtained from Echelon II NAVFAC Financial Management

(FM) Proponent. NAVFAC Headquarter (HQ) FM approval is not required on a direct

cite from non-NAVFAC customers.

37.204 (NMCARS) Guidelines for determining availability of personnel.

A Determination and Findings (D&F) that personnel with the required training and

capabilities are not readily available within the agency or other Federal agencies (as

defined by FAR 2.101) to conduct evaluations or analysis of proposals for an initial

contract award shall be approved by the Assistant Commander for Acquisition via the

appropriate Division Director. This D&F is required for the use of any third-party

personnel to conduct evaluations or analysis of proposals through a contract or any

other means, whether paid or unpaid.

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SUBPART 37.3—DISMANTLING, DEMOLITION OR REMOVAL OF IMPROVEMENTS

37.302 Bonds or other security.

(a) A contract for demolition or timber cutting to clear an area to permit new

construction shall include Bonds statute bonds. However, if the demolition is part of an

environmental cost-reimbursement contract, Bonds statute bonds are not required.

(b) Bid security shall be 20 percent of the estimated cost of demolition, exclusive of

salvage.

estimated cost of demolition, exclusive of salvage.

SUBPART 37.5—MANAGEMENT OVERSIGHT OF SERVICE CONTRACTS

37.502 Exclusions.

(b) For NAVFAC EXWC ONLY: As authorized under FY2017 NDAA Section 233

Pilot Program for the Enhancement of the Research, Development, Test and Evaluation

Centers, Phase II, Sprint 1 (Section 233), the NMCARS requirement to use NMCARS

Annex 21 MOPAS-S for supply contracts when incidental services are greater than the

SAT is waived.

37.504 Contracting Officer’s Responsibilities.

(a) All acquisitions of services valued in excess of the SAT shall comply with the

policy and procedures in NMCARS 5207.103(j) and (1) and in NFAS 7.103 unless—

(1) The Department of Defense Instruction (DoDI) Number 5000.74

does not apply; or

(2) Exempted by DoDI 5000.74.

(3) For NAVFAC EXWC ONLY: Actions under $2,000,000 (including task or delivery

orders) may utilize the acquisition development plan in NAVFAC BMS in lieu of

NMCARS Annex 21, MOPAS-S as authorized under FY2017 NDAA Section 233 Pilot

Program for the Enhancement of the Research, Development, Test and Evaluation

Centers, Phase II, Sprint 1 (Section 233). Approval authorities remain the same as in

the table below.

(b) Use NMCARS Annex 21, MOPAS-S, for all service acquisitions (which may

include but is not limited to architect-engineering (A-E), commercial services, base

operations support (BOS) or facility support services such as custodial, equipment

maintenance and repair, guard services, etc.,) over the SAT up to but less than $50M for

all years or up to but less than $25M for any fiscal year, including task orders.

Exception: In-scope task orders using only pre-priced line items under NAVFAC IDIQ

contracts do not require a MOPAS-S document.

a fiscal year or $50M or more for all years unless preparing on a programmatic basis

then use NMCARS Annex 19, PSTRAP-M.

Review and approval of the MOPAS-S for performance and non-performance based

service acquisitions valued between SAT and $50M is delegated as follows:

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APPROVAL REQUIREMENTS FOR MOPAS-S

Total Planned

Dollar Value

Requirements

Review

Acquisition Plan

Review

Decision

Authority/Approval

> SAT up to & incl $25M (all

years)

Requiring

Activity

Procuring

Contracting Officer

(PCO)

Level above PCO

> $25M up to but less than

$50M (all years)

Requiring

Activity

Contracting Officer a

level above the

Contract Specialist

Echelon III/IV

Division Director

Refer to NFAS 7.103(e) for approval levels for STRAP documents for service

acquisitions $50M or more for all years or $25M or more for any fiscal year.

(d) MOPAS-S does not apply to contracts for construction, or for utility contracts

providing natural gas, electricity, water and wastewater treatment processing at other

than Government owned generation, production or treatment facilities. Similarly,

MOPAS-S does not apply to contracts for the provision of energy conservation services

using Energy Savings Performance Contracts or Utility Energy Service Contracts.

However, market research and acquisition planning must be performed and documented

for all requirements.

SUBPART 37.100—FACILITIES SUPPORT CONTRACTING

37.1000 Contract format.

All facility support contract actions in excess of the SAT must utilize NAVFAC’s

FSC/BOS Template as applicable. The Contracting Officer should consult with the

cognizant Public Works Business Line Point of Contact to ensure strict compliance with

Template guidance and, if applicable, ensure any waivers have been requested and

approved prior to accepting the Performance Work Statement (PWS).

37.1002 Evaluation of contractor performance.

See NFAS 42.1503 for guidance on the preparation and distribution of performance

evaluation reports.

37.1003 Instructions for use of NAVFAC language.

(a) Use the language, “Authority,” at NFAS 1.602-1-101 in all service

solicitations/contracts (including facilities support, BOS, and knowledge based services).

The language should be included in Section H of solicitations using Uniform Contract

Format (UCF).

(b) Where proposals are to be accepted on an all or none basis, the Contracting

Officer shall include the language at NFAS 15.209-100, in Section L of the solicitation.

3-100 in other than construction solicitations requiring bonds. The language should be

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used in conjunction with FAR Clause 52.228-16, “Performance and Payment Bonds –

Other than Construction.”

(d) Use the language, “Consumption Tax Exemption Procedures on Purchase of

Goods and Services by the United States Armed Forces in Japan [Japanese Law No.

108, 1988],” in all service solicitations/contracts for services in Japan. This language

should be used in addition to FAR 52.229-6, “Taxes – Foreign Fixed-Price Contracts.”

(e) Use the language, “SUBSTITUTIONS OF KEY PERSONNEL,” at NFAS 37.110-

100 in service contracts when personnel are key to performance of the contract and/or

were a factor in the selection process. The language should be included in Section H of

solicitations using Uniform Contract Format (UCF).

SUBPART 37.101—FORESTRY CONTRACTING

37.1010 NAVFAC policy.

(a) Service contracts. Reforestation, timber stand improvement, or fire prevention

shall be accomplished in accordance with the provisions of NFAS Subpart 37.100.

(b) Timber sale contracts. Sale contracts shall be accomplished in accordance with

applicable provisions of the Federal Management Regulation

, Subchapter B–Personal

Property, Part 102-38–Sale of Personal Property.

be accomplished by separate contracts.

SUBPART 37.3100—DISMANTLING, DEMOLITION, OR REMOVAL OF

IMPROVEMENTS

37.3100 NAVFAC policy.

(a) No demolition contract shall be executed until the requiring activity has complied

with the requirements of the Federal Management Regulation

, Subchapter C–Real

Property, Part 102-75–Real Property Disposal and the current version of SECNAVINST

11011.47.

(b) The Uniform Contract Format (UCF) will be utilized for contracts solely for

dismantling, demolition, or removal of improvements and the Construction Specifications

Institute (CSI) format utilized for contracts with follow-on construction.

copy of the contract shall be transmitted to the local disbursing officer as promptly as

possible. The Contracting Officer shall request the disbursing officer to hold the check in

a suspense account until such time as the Contracting Officer is certain that no

modifications to the contract that result in a refund to the contractor will be required.

PART 38

FEDERAL SUPPLY SCHEDULE CONTRACTING

(RESERVED)

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PART 39

ACQUISITION OF INFORMATION TECHNOLOGY

39.002 Definitions.

"Information technology (IT)” means any 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. This includes computers, ancillary equipment, software

firmware and similar procedures, services (including support services), and related

resources.

An "information system (IS)" is a combination of elements that shall function together

to produce the capabilities required to fulfill a mission need, including hardware, ancillary

equipment, software or any combination thereof, but excluding construction or other

improvements to real property.

“Platform information technology (PIT)” refers to computer resources, both hardware

and software, that are physically part of, dedicated to, or essential in real time to the

mission performance of special purpose systems. PIT detects or causes a change

through the direct monitoring and/or control of physical devices, processes and events in

the enterprise. Industrial control systems, including building control systems, and utility

control systems, are examples of PIT used in building energy management (HVAC) and

utility systems for generation, transmission, distribution, and collection of such

infrastructure as water, steam, electrical, etc. IT products, when purposed for PIT,

become PIT products. Weapons systems PIT are not included.

SUBPART 39.1—GENERAL

39.101 Policy.

(a) Engineering and Expeditionary Warfare Center (EXWC) has unlimited authority to

procure IT resources. EXWC must still seek review and approval in accordance with

NFAS 1.690. The approval levels at NFAS 1.690 are not redelegable.

(b) Echelon III/IV, other than EXWC, are delegated authority to procure IT resources

up to the simplified acquisition threshold (SAT) level.

procurements at any dollar value.

(d) NAVFAC Atlantic and Pacific Chief of the Contracting Office (CCOs) may request

a waiver on a case-by-case basis for increased IT procurement authority. The waiver

shall address that the request has been coordinated with the EXWC CCO and document

the rationale why the waiver is required. The waiver shall be requested via email with a

copy to the EXWC CCO, through the cognizant HQ Division Director for approval by the

Assistant Commander for Acquisition/Deputy Director for Acquisition.

(e) Echelon III/IV have the authority to procure PIT within the dollar thresholds

established for Contracting Officer warrants in NFAS 1.603-2.

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(f) Only Contracting Officers having specific IT procurement authority designated on

their warrant shall procure IT resources.

(g) NAVFAC Headquarters Information System (IS) approval is still required for IT

and PIT acquisitions.

PART 40

(RESERVED)

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PART 41

ACQUISITION OF UTILITY SERVICES

SUBPART 41.1—GENERAL

41.102 Applicability.

(a) Rubbish removal/trash collection.

(1) The collection and removal of garbage, trash and rubbish are typically

considered to be service type requirements covered by the Service Contract Labor

Standards statute (29 CFR 4.130). However, where this service is regulated under

State, local, or Federal law governing operations of public utility enterprise and the

wages paid employees are controlled by a governmental body, the federal government

contracts with a local governmental body to provide the service and there is no

opportunity to compete this requirement, it may be considered a public utility service

exempt from the Service Contract Labor Standards statute (29 CFR 4.115).

(2) If the service is controlled and provided by a governmental body through a

franchised or similar mechanism to restrict who may perform the service and the federal

government must contract with only authorized providers, the service is exempt from the

Service Contract Labor Standards statute provisions.

(3) Contracts entered into with public utility companies to furnish services through

the use of service employees, other than those employees subject to the governmental

rate requirements, are not exempt from the Service Contract Labor Standards statute

(29 CFR 4.120).

(b) Miscellaneous community services. Military activities located within corporate or

geographical limits of governmental units are entitled to the same community services

that are provided to the public generally without charge when such services are

supported by taxation. These services may include fire and police protection, snow

removal, street cleaning or other miscellaneous community type services. However, if

these services are furnished to the public on a contractual basis, or are provided the

military activity outside the corporate limits, they may be obtained by contract on a

reimbursable basis. All questions concerning the propriety of obtaining these type

services by contract should be coordinated with NAVFAC Counsel or coordinated with

the NAVFAC Acquisition Proponent.

authorized to execute contracts for the sale of utility services to private parties

authorized by NAVCOMPT Manual 035875 and prevailing policy governing these

actions. NAVFAC Form 4330/16, “Utility Sales Contract,” may be used as appropriate.

(d) Notwithstanding the prohibition of obtaining community services by contract from

governmental units, military installations subject to base closure may be eligible for

certain types of services under cooperative agreements. NAVFAC Acquisition

Proponent should be contacted for information concerning special rules affecting bases

to be closed.

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41.103 Statutory and delegated authority.

(a) Echelon III Commanders/Commanding Officer/Echelon IV Commanding Officers

have been delegated authority to contract for utility services for periods up to 10 years in

accordance with the authority delegated to the Department of Defense by General

Services Administration (GSA) in accordance with 40 U.S.C. 501. The overall term of a

utility services contract using 40 U.S.C. 501 shall be no more than 30 years, inclusive of

the base and all options.

(b) 10 U.S.C 2913 as implemented by the Secretary authorizes military departments

to enter into agreements with gas or electric utilities to design and implement cost-

effective demand and conservation incentive programs (including energy management

services, facilities alterations, and the installation and maintenance of energy saving

devices and technologies by the utilities) to address the requirements and circumstances

of the installation.

Further the Secretary of Defense may authorize any military installation to accept

any financial incentive, goods, or services generally available from a gas or electric

utility, to adopt technologies and practices that the Secretary determines are in the

interests of the United States and consistent with the energy performance goals for the

Department of Defense.

However, this authority to enter agreements or accept incentives, goods or

services does not preclude the requirement to seek competition if appropriated funds are

to be expended to study, design or implement energy conservation measures. The

authority provided by the statute in and of itself does not justify or permit entering into a

sole source contract with the utility. Each proposed non-competitive award must be

publicly announced in accordance with FAR 5.207 and if appropriate subsequently

supported with a Justification and Approval (J&A) prepared in accordance with the

requirements of FAR Part 6.3. Further, any resulting Utility Energy Service Contracts

(UESC) are NOT utility contracts but must contain those clauses normally included in

contracts for construction or services as appropriate.

While GSA permits UESC actions to be awarded on their area wide utility

agreements, as a matter of policy, all NAVFAC actions shall be awarded as stand-alone

actions in order to accommodate requirements to properly report this work and

distinguish it from true utility type requirements.

savings contracts with terms up to 25 years.

SUBPART 41.2—ACQUIRING UTILITY SERVICES

41.201 Policy.

(a) Energy Savings Performance Contracts.

(1) The Naval Facilities Engineering and Expeditionary Warfare Center (EXWC)

at Pt. Hueneme, CA is the only NAVFAC contracting office currently authorized to award

Energy Savings Performance Contracts authorized by 42 U.S.C. 8287 as modified by

the Energy Policy Act of 1992.

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(2) These special authorities are not yet incorporated in the FAR and rules

governing the application and use of these special authorities are found in various

Executive Orders, Department of Energy final rules, and other assorted instructions and

documents. Questions concerning use of these special authorities should be directed to

EXWC or NAVFAC Acquisition Proponent.

(3) Use of Department of Energy area-wide Energy Savings Performance

Contracts are subject to the procedures governing the Economy Act transfers outside

the Department of Defense.

(4) Frequently, contracts awarded subject to these special authorities do not

specify a contract value. For the purposes of establishing approval thresholds, the

estimated value of the maximum capital investment shall be used to determine the

appropriate approval authority.

(b) Existing contracts. Actions to correct existing contracts which may not now be

considered inappropriate for award under the provisions of FAR Part 41 (i.e., trash

collection, cable television, telecommunication services, etc.) are left to the discretion

and judgment of the cognizant Contracting Officer. Contracting Officers should

coordinate closely all new contract actions with NAVFAC Counsel to assure new awards

are consistent with current law and regulation.

utility costs by establishing reduced rates (not subject to regulation) or alternate terms

and conditions are subject to the same review and approval thresholds as are any other

contract action having a similar value. In those situations, where the contract has no

fixed term (indefinite term utility contracts), the term shall be considered to be five years

for purposes of establishing the contract value for determining review and approval

thresholds. Proposed modifications which change regulated rates are not subject to any

review and approval beyond that locally established.

(d) Advance payments. Any requirement to include provisions for advance payments

in a utility contract shall be referred to the NAVFAC Acquisition Proponent. Each

request shall document that no other means of financing is available and all attempts to

negotiate other payment terms were unsuccessful.

41.202 Procedures.

(a) Procurement of utility services, particularly electricity, is significantly affected by

state law and regulation. Contracting Officers are responsible for maintaining an

awareness of local regulations governing the acquisition of utility services and the

feasibility of competing utility requirements as state laws are changed and utilities

become deregulated.

(b) A J&A should be available supporting each contract awarded without competition.

Where utility services are procured under an indefinite term agreement, a new J&A

should be prepared annually.

procedures in FAR 41.202.

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(d) Power purchase agreements (PPA) shall only be awarded as a stand-alone and

may include multiple sites under a single award.

SUBPART 41.4—ADMINISTRATION

41.401 Monthly and annual review.

Upon completion of the annual review, the Contracting Officer shall make a written

determination that the rates are fair and reasonable for the type of service provided.

41.4100 Contract records.

(a) The Contracting Officer shall maintain a record of all utility contracts to include

contract number, name of contractor, activity served, type of service and other pertinent

information relating to the characteristics of the service and the circumstances under

which it is furnished. This record should also contain:

(1) monthly records of billing data for accounts over $25,000 per year abstracted

from invoices;

(2) a complete current inventory of all company-owned facilities and equipment

installed at each activity; and

(3) a current file of the rates, rules, and regulations under which service is

furnished to the public by the various contractors, including abstracts of special contracts

with industrial or other customers.

(b) The using activity shall be instructed to submit annually to the contracting activity

a tabulation of the billing data including units of consumption and the amount of billings

for all accounts $25,000 or less per year.

adjustments should be maintained until all required contract administrative actions have

been completed and the final payment made.

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PART 42

CONTRACT ADMINISTRATION AND AUDIT SERVICES

SUBPART 42.2—CONTRACT ADMINISTRATION SERVICES

42.202 Assignment of contract administration.

(a) Delegating functions. Cognizant Procuring Contracting Officers (PCOs) shall,

when appropriate, formally delegate in writing to a Contract Administration Office (CAO),

i.e. Facilities Engineering and Acquisition Division (FEAD), Resident Officer in Charge of

Construction (ROICC), or Defense Contract Management Agency (DCMA), specific

contract administration functions or specialized support services, as outlined in and in

accordance with FAR 42.302 and DFARS 242.302. The delegation shall include all the

specific information listed at FAR 42.202(b) through (f). The delegation should outline all

specific or additional functions or services delegated and shall also include any functions

or services that are not delegated to the CAO and retained by the PCO.

(b) Special instructions. As necessary, the Contracting Officer also shall advise the

contractor (and other activities as appropriate) in writing of contract administration

delegated to a CAO and any functions withheld from or additional functions delegated to

the CAO.

42.202-100 Contracting Officer’s representatives.

See NFAS 1.602-2 for appointment and responsibilities of Contracting Officer

Representatives (CORs), Contracting Officer Authorized Representatives (COARs), and

Ordering Officers.

SUBPART 42.12—NOVATION AND CHANGE-OF-NAME AGREEMENT

42.1202 Responsibility for executing agreements.

If the novation agreement affects contracts other than those of the activity, the

documentation shall be forwarded to the Echelon III/IV Chief of the Contracting Office

(CCO) or the appropriate Echelon II Division Director, as appropriate, for action.

SUBPART 42.15—CONTRACTOR PERFORMANCE INFORMATION

42.1503 Procedures.

42.1503-100 Preparation and use of contractor performance evaluation reports.

(a) All contracts/contract actions that meet Contractor Performance Assessment

Reporting System (CPARS) reporting requirements shall include the following statement

in the solicitation:

“Contractor’s performance will be evaluated using the respective contractor

performance evaluation report entry system located on the website

http://www.cpars.gov/

. Prior to commencement of work the contractor is

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required to provide the government with the name, phone number and

e-mail address of the “Contractor’s Representative” that will be responsible for

receipt and review of draft performance evaluations prepared by the

government in the appropriate system. It is the contractor’s responsibility to

keep this contact information current.”

(b) Unless otherwise stated, performance evaluations shall be initiated promptly

upon the completion of work, at the end of an evaluation period, or when the need to

initiate an evaluation is identified. Evaluation reports shall be completed and finalized in

CPARS within 120 days from completion or evaluation period.

(1) For Design Build construction contracts see requirements under Construction

Contracts below.

(2) For A-E contractors that are designers of record for construction contracts,

prepare two final evaluations in CPARS for the A-E’s performance. One final evaluation

at the completion of the design contract and one final evaluation for the A-E’s

performance of construction contract support services at the completion of the

construction contract.

(d) Construction Contracts.

(1) For Design Build construction contracts, a brief evaluation of the A-E’s

performance shall be provided in the remarks section of the construction contractor’s

final CPARS performance evaluation. This information is to be provided by the NAVFAC

office responsible for design review.

(2) See paragraph (b)(2) above for requirements on preparing a performance

evaluation on construction contract support services provided by an A-E.

(3) Completed final evaluations are due within 60 days after the Beneficial

Occupancy Date (BOD).

(e) All contracts terminated for default must be documented in CPARS.

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PART 43

CONTRACT MODIFICATIONS

SUBPART 43.1—GENERAL

43.102 Policy.

43.102-100 Execution of modifications.

(a) General.

(1) Bilateral modifications shall not be executed by the government until after

execution by the contractor. If the contractor places conditions on the modification, a

written reply shall immediately be sent to the contractor stating that the government will

not execute the modification as returned and will treat it as null and void.

(2) All firm fixed price supplemental agreements shall include the following

statement unless waived by the Echelon III/IV Chief of the Contracting Office (CCO):

"Acceptance of this modification by the contractor constitutes an

accord and satisfaction and represents payment in full for both time

and money and for any and all costs, impact effect, and for delays

and disruptions arising out of, or incidental to, the work as herein

revised."

(3) A government estimate is not required for contract modifications under the

simplified acquisition threshold (SAT). However, in the absence of a government

estimate, a determination of price reasonableness must still be made in accordance with

local procedures.

(4) Prior to final payment and contract closeout, a unilateral modification shall be

prepared to adjust the contract price for any liquidated damages assessed against the

contractor.

(5) If a modification includes both additions and deductions, the absolute dollar

value determines the warrant level required for approval or execution (e.g., the absolute

dollar value of an action that adds $500,000 of work and deducts $200,000 of work is

$700,000.)

(b) Facilities support contract modifications.

(1) If labor requirements are affected by out-of-scope work, a new Service

Contract Act (SCA) wage determination must be requested and made a part of the

modification.

(2) A unilateral modification shall be issued to adjust the contract price for

unperformed work.

(c)Construction contract modifications. All modifications must include either an

adjustment of the contract completion date or the statement: “Extension of contract time

is not required by reason of this modification.”

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SUBPART 43.2—CHANGE ORDERS

43.201 (NMCARS) General.

(a) The policies and procedures of DFARS 217.74 and NFAS 17.74 as outlined in

this subpart shall be applied to all undefinitized change orders.

(b) Refer to NFAS 32.702(b) for guidance on funding construction modifications on

contracts that were awarded in a prior fiscal year.

43.201-100 Policy.

(a) It is NAVFAC policy to negotiate in advance the cost and time associated with all

contract changes except in unusual circumstances where it is not possible as a

consequence of the character of the changed work. In those instances, an undefinitized

change order may be issued in accordance with the policies and procedures outlined

below.

(b) The following elements of DFARS 217.74 and NFAS 17.74 shall be applied to all

undefinitized change orders, except value engineering change proposals:

(1) Ensure undefinitized change orders are issued only when:

(i) The negotiation of a definitive in-scope modification is not possible in

sufficient time to meet the Government's requirements; and

(ii) The Government's interest demands that the contractor be given a binding

commitment so that performance can begin immediately.

(2) Ensure undefinitized change orders are as complete and definite as

practicable under the particular circumstances.

(3) A Not-To-Exceed (NTE) ceiling price shall be established for each

undefinitized change order, unless a written determination is made by the CCO to waive

the NTE amount. The NTE ceiling price may be adjusted by modification during the

performance if circumstances warrant, but shall not be exceeded at definitization.

(4) Each undefinitized change order shall include a definitization schedule that

provides for definitization by (i) or (ii) below, whichever occurs earlier:

(i) The date that is 180 days after issuance of the undefinitized change order.

This date may be extended but may not exceed the date that is 180 days after the

contractor submits a qualifying proposal; or

(ii) The date on which the amount of funds obligated on the undefinitized

change order is equal to more than 50 percent of the not-to-exceed price.

(5) Ensure a qualifying proposal is submitted by the contractor in accordance

with the definitization schedule. If the contractor does not submit a timely qualifying

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proposal, the contracting office may suspend or reduce progress payments under FAR

32.503-6, or take other appropriate action.

(6) Approval Authority:

(i) Only Contracting Officers having specific undefinitized contract action

authority (UCA) designated on their warrant shall execute undefinitized change orders,

unless delegated one-time authority on a case-by-case basis.

(ii) See 17.7404-1 for approval levels for UCA actions.

(7) Echelon III/IV CCO:

(i) Provide management oversight of undefinitized change orders issued by

the Echelon III/IV activities and field activities under their cognizance to:

(ii) Ensure appropriate use of the instrument.

(iii) Apply management attention to backlog.

(iv) Establish a definitization schedule.

and time associated with changed or additional work, a unilateral definitized change

order may be issued to direct the contractor to proceed with the work despite the

absence of a forward priced agreement of equitable adjustment. In such circumstances,

the unilateral definitized change order shall contain an equitable adjustment to the

contract, both in terms of time and money, in amounts thought to be reasonable by the

Contracting Officer. The equitable adjustment to the contract should be broken down in

sufficient detail to clearly document the basis for the Contracting Officer’s determination

of what was reasonable should the contractor seek additional compensation via the

disputes provisions of the contract. Unilateral definitized change orders shall be

approved at the level designated for the Post-Negotiation Business Clearance/Post-

Negotiation Memorandum. However, for actions up to and including the SAT, the

Contracting Officer with appropriate management and oversight of the individual

assigned the action shall provide approval.

43.201-101 Use of Lean Modification Process for actions up to SAT.

(a) It is NAVFAC policy to utilize the lean modification process for ALL in-scope

bilateral modifications up to the SAT. The lean process has been determined to be the

most efficient and effective means to process these lower dollar value modifications.

The lean modification process is detailed in Business Management System (BMS)

Process S- S-17.4.4.2 Bilateral - Modifications Under SAT Using Lean.

43.204 (NMCARS) Administration.

43.204-70-7 (NMCARS) Plans and reports.

See NFAS 17.7405(a)(2) for reporting requirements.

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PART 44

SUBCONTRACTING POLICIES AND PROCEDURES

SUBPART 44.2—CONSENT TO SUBCONTRACTS

44.202 Contracting Officer’s evaluation.

44.202-1 (FAR) Responsibilities.

44.202-1-100 Post award subcontractor changes.

(a) Post award subcontractor changes pursuant to FAR 52.244-2 Subcontracts or

FAR 52.244-4 Subcontractors and Outside Associates and Consultants (Architect-

Engineer Services) shall be conducted as follows:

(i) The Contracting Officer and Program Manager (or equivalent) shall evaluate

the contractor’s request and supporting data to ensure the subcontractor(s) meets

contract requirements and the information clearly presents the business case for the

change of the subcontractor(s).

(ii) The proposed change shall be approved one level above the Contracting

Officer upon concurrence of individuals specified in subparagraph (i) above, as

applicable.

(iii) The Contracting Officer shall modify the contract or task/delivery order to

reflect the approved change of subcontractor(s) and document the official contract file

accordingly.

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PART 45

GOVERNMENT PROPERTY

SUBPART 45.1—GENERAL

45.103 General.

45.103-73 Contracting Officer responsibilities.

(ii) Government-furnished property compliance is required to be reported quarterly.

Echelon III activities shall consolidate the information for its area of responsibility (AOR)

and submit a report by the end of each month following the end of each fiscal quarter (30

January, 30 April, 30 July, 30 October), via email to the Echelon II People, Process and

Policy Director. NFAS Appendix A summarizes all reporting requirements.

SUBPART 45.70—(DFARS) APPOINTMENT OF PROPERTY ADMINISTRATORS

AND PLANT CLEARANCE OFFICERS

45.7001 Selection, appointment and termination.

(a) The Contracting Officer shall designate a property administrator for each contract

involving government property furnished to or acquired by the contractor.

(b) All property administrators shall be members of the Defense Acquisition

Workforce and shall attend the DoD training course for property administrators.

NAVFAC Contracting Officers shall obtain assurance from customers that properly

trained property administrators (if required) will be available prior to the issuance of any

solicitation for customer requirements.

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PART 46

QUALITY ASSURANCE

SUBPART 46.1—GENERAL

46.104 Contract administration office responsibilities.

Quality assurance responsibilities should be assigned by the Contracting Officer

according to the quality assurance needs, regardless of the type of contract.

SUBPART 46.2—CONTRACT QUALITY REQUIREMENTS

46.202 Types of contract quality requirements.

46.202-2 Government reliance on inspection by contractor.

Refer to the Capital Improvements Business Line for guidance on its construction

quality management program.

46.202-2-100 Construction Surveillance and Inspection (Title II) services.

Refer to the Capital Improvements Business Line for guidelines for architect-engineer

(A-E) construction and inspection (Title II) services.

SUBPART 46.4—GOVERNMENT CONTRACT QUALITY ASSURANCE

46.4100 NAVFAC contract quality assurance requirements.

Refer to the appropriate Business Line for specific quality control (QC) and quality

assurance (QA) requirements for the construction quality management program, A-E

construction and inspection (Title II) services, and environmental contract quality

management.

SUBPART 46.7—WARRANTIES

46.704 Authority for use of warranties.

All warranties shall be standard or customary in the trade unless a Level III

Contracting Officer has made a written determination documenting that the extra

warranty protection is needed.

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PART 47

TRANSPORTATION

SUBPART 47.5—OCEAN TRANSPORTATION BY U.S.—FLAG VESSELS

47.574 (DFARS) Solicitation provisions and contract clauses.

(a) DFARS Clauses 252.247-7022 Representation of Extent of Transportation by

Sea, 252.247-7023 Transportation of Supplies by Sea, and 252.247-7024 Notification of

Transportation of Supplies by Sea shall be included in full text in all overseas

construction solicitations and contracts.

PART 48

VALUE ENGINEERING

(RESERVED)

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PART 49

TERMINATION OF CONTRACTS

SUBPART 49.1—GENERAL PRINCIPLES

49.101 Authorities and responsibilities.

49.101-100 Reporting requirements.

A log shall be kept of all contracts terminated.

SUBPART 49.4—TERMINATION FOR DEFAULT

49.402 Termination of fixed-price contracts for default

49.402-3 Procedure for default.

(a) Contracts shall be terminated by Contracting Officer's Final Decision with a copy

to the appropriate Echelon II Division Director.

(b) Each Echelon III/IV activity shall maintain a tracking system to assure that

applicable field office completion reports, initial and follow-up demand letters, and when

appropriate, files forwarded to NAVCOMPT for nonpayment are done in a timely

manner.

for completion of defaulted contract #______________________.”

49.402-8 (NMCARS) Reporting information.

The Echelon II People, Process and Policy Director shall be copied on the email to

the Assistant General Counsel (Acquisition Integrity) (AGC(AI)) when submitting a copy

of the Federal Awardee Performance and Integrity Information System (FAPIIS) entry

required by NMCARS 5249.402-8.

49.403 (NMCARS) Termination of cost-reimbursement contracts for default.

The Echelon II People, Process and Policy Director shall be copied on the email to

the AGC (AI) when submitting a copy of the FAPIIS entry required by NMCARS

5249.403.

49.405 Completion by another contractor.

49.405-100 Four-party agreements.

If the surety for a failing contractor, prior to termination and with the consent of the

failing contractor, offers another firm to take over the work, this shall be accomplished by

a four-party agreement (government, existing contractor, new contractor, and surety),

patterned after the novation agreement set forth in FAR 42.1204. The surety must state

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in the agreement that the existing performance and payment bonds extend to and cover

all work by the new contractor, or new bonds must be issued.

SUBPART 49.70—SPECIAL TERMINATION REQUIREMENTS

49.7001 (NMCARS) Congressional notification on significant contract

terminations.

(2) When a decision to terminate is contemplated, the Echelon III/IV Chief of the

Contracts Office (CCO) shall forward the required documentation to the appropriate

Echelon II Division Director for review and further dissemination to Deputy Assistant

Secretary of the Navy for Acquisition and Procurement (DASN(AP)) as required by

NMCARS 5249.7001(3). The appropriate Echelon II Division shall ensure that the

Echelon II People, Process and Policy Director is copied on the email DASN(AP).

PART 50

EXTRAORDINARY CONTRACTUAL ACTIONS AND THE SAFETY ACT

(RESERVED)

PART 51

USE OF GOVERNMENT SOURCES BY CONTRACTORS

(RESERVED)

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PART 52

SOLICITATION PROVISIONS AND CONTRACT CLAUSES

SUBPART 52.1—INSTRUCTIONS FOR USING PROVISIONS AND CLAUSES

52.101 (NMCARS) Using Part 52.

The NMCARS 11-digit numbering system is used for NAVFAC provisions and

clauses, using the last four digit sequential numbers of 9300 through 9399.

SUBPART 52.2—TEXTS OF PROVISIONS AND CLAUSES

52.200 [Removed and Reserved]

5252.209-9300 [Removed and Reserved]

5252.236-9301 [Removed and Reserved]

5252.236-9310 [Removed and Reserved]

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PART 53

FORMS

SUBPART 53.2—PRESCRIPTION OF FORMS

53.200 Scope of subpart.

The FAR/DFARS/NMCARS and NFAS prescribe forms for use in acquisition.

Copies of Standard, Optional and DoD forms may be obtained from the following

websites:

General Services Administration (GSA) Forms Library, Standard and Optional Forms

http://www.gsa.gov/portal/forms/type/TOP

DoD Electronic Forms

http://www.dtic.mil/whs/directives/infomgt/forms/formsprogram.htm

SUBPART 53.3—ILLUSTRATION OF FORMS

53.300 Scope of subpart.

This subpart provides an illustration of NAVFACENGCOM forms that may be used in

the acquisition process:

Form Number Form Name

4330/7 Contractor’s Release

4330/14 Assignee’s Release

4330/16 Utility Sales Contract

4330/36 Construction Contract Non-Compliance Notice

4330/46 Expanded Performance Requirements Summary

4350/1 Labor Standards Enforcement Report

4350/2 Employee Claim for Restitution of Wages

7300/30 Contractor’s Invoice

7300/31 Contract Performance Statement

7300/32 Prompt Payment Certification and Deduction

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APPENDIX A—NAVFAC REPORTING REQUIREMENTS

The matrix shown below is a summary of required reports, followed by special reporting

formats. Unless otherwise noted, all reports shall be submitted to the Echelon II

designated representative.

REPORT MATRIX

REPORT TITLE

REFERENCE

DUE DATE TO HQ

Monthly Peer Review Forecast NFAS 1.170(h) 15

of the month

Monthly

Monthly Contract Closeout Metric

Report

NFAS 4.804-1 (S-90) 15

of the month

Quarterly Ratification Reporting NFAS 1.602-3(e)(2)

20 Jan 20 Apr

20 Jul 20 Oct

Quarterly Verification and Validation (V&V) Report NFAS 4.604(3)(i)

1 Feb 1 May

1 Aug 1 Nov

Quarterly Bridge Contract Awards NFAS 6.304-101(d)

15 Jan 15 Apr

15 Jul 15 Oct

Quarterly

HCA determination to award in

accordance with FAR 15.403-3(a)(4)

NFAS 15.403-3(d)

20 Jan 20 Apr

20 Jul 20 Oct

Quarterly GFP Compliance Report NFAS 45.103-73(ii)

30 Jan 30 Apr

30 Jul 30 Oct

Semi-

Annual

Consolidated Undefinitized Contract

Actions (UCA) Management Report

NFAS 17.7405(a)(2)

10 Apr

10 Oct

Semi-

Annual

Labor Standards Enforcement Report NFAS 22.406-13

15 Apr

15 Oct

Semi-

Annual

Unpriced Change Order Report

(Combined with Consolidated UCA

Management Report)

NFAS 43.204-70-7

10 Apr

10 Oct

Annual Warrants Annual Report NFAS 1.603-3(d) 3 Dec

Annual Internal Business Assessment NFAS 1.691-2-101 20 Mar

Annual

Contract Action Report, Data

Verification and Validation (V&V)

Certification

NFAS 4.604-3(ii) 1 Nov

Annual Long Range Acquisition Forecast NFAS 5.404 10 Jun

Annual

Competition Report, including project

competition goal for current year

NFAS 6.502(b)(2) 15 Dec

Annual

Report on Pilot Program for Acquisition

of Military-Purpose Nondevelopmental

Items

NFAS 12.7102-2(a) 1 Oct

Annual

Truth in Negotiation Act (TINA) Waivers

valued $19.5M or more and Commercial

Item Exceptions to Cost/Pricing Data

valued $19.5M or more

NFAS 15.403-1(c)(4)(B) 15 Oct

Annual Inter-Intra Agency Logs NFAS 17.502-2(d) 10 Nov

Annual

DoE Work For Others (WFO) Order

Compliance Assessment Results

NFAS 17.502-2(d) 10 Dec

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REPORT MATRIX

REPORT TITLE

REFERENCE

DUE DATE TO HQ

Annual Nondefense Agency Certification Report NFAS 17.703(c) 15 Oct

Annual

Commercial Off The Shelf (COTS)

Specialty Metal Exception Report

NFAS 25.7003-3(b)(2)(ii) 07 Oct

Annual

Cost Accounting Standards Waivers

over $15M

NFAS 30.201-5(e) 1 Nov

Annual Claims Log NFAS 33.211(c) 31 Oct

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APPENDIX B—NAVFAC SUBJECT MATTER EXPERT CONTACT LIST

SUBJECT MATTER EXPERT PHONE NUMBER

ACQ1 - People, Process, and Policy 202-685-9155

Community Management

COR

Labor

Congressional Inquires

GAO, IG's

NFAS

BMS

Reports

ACQ2 - PW/CI/EV/CIO/AM Division 202-685-9135

PW/BOS

Capital Improvements

Asset Management

Construction

Facility Support Contracts

Environmental, Grants

Leasing

ACQ3 – Expeditionary Support/ATFP/SSPO/Energy & Utility Division 202-685-9136

Expeditionary Support

ATFP

SSPO

Energy & Utility

ACQ4 - Electronic Acquisition 202-685-9164

All CVP FIAR responses

All ACQ system FISCAM responses

Procurement Integrated Enterprise Environment (PIEE) which includes:

WAWF

EDA

CLS

GFP

JAM

CCO

CDR

SPM

Integrated Acquisition Environment (IAE)/SAM.gov which includes:

SAM

EPLS

FPDS-NG

eSRS/FSRS

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FBO

CPARS

WDOL

FAADC

CAFU

eContracts

FEDMALL

Seaport NXG

SPS

Government Commercial Purchase Card 619-532-2868

Naval Facilities Institute (NFI) 805-982-5125

NFACT

Procurement Management Assessment

Program (PMAP) 202-685-9153

Office of Small Business Programs (OSBP) 202-685-9129

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THIS PAGE IS INTENTIONALLY LEFT BLANK

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131

APPENDIX C—SUMMARY OF SIGNIFICANT CHANGES

NAVFAC ACQUISITION STANDARDS (NFAS)

(October 2018, Change 01 issued 02 August 2019)

The following changes are hereby incorporated in Change 01 to the October 2018

Edition of the NFAS.

(1) The table of contents (TOC) was revised to Add Subpart 6.2 – Full and Open

Competition after Exclusion of Sources (new content), Add 6.202 (NMCARS)

Establishing or maintaining alternative sources (new content), Add 6.502 (NMCARS)

Duties and responsibilities (new content), Add 7.107 (NMCARS) Additional requirements

for acquisitions involving consolidation, bundling, or substantial bundling (new content),

Add (NMCARS) 7.107-2 Consolidation (new content), Add (NMCARS) 7.107-3 Bundling

(new content), Add 8.405-6 (NMCARS) Limiting Sources (new content), Add 9.506

Procedures (new content), Delete the title to 9.507 Solicitation provisions and contract

clause and replace it with [Removed and Reserved], Delete the title to 9.507-2 Contract

clause and replace it with [Removed and Reserved], Delete the title to 11.104 Use of

brand name or equal purchase description and replace it with [Removed and Reserved],

Delete the reference to 11.274 (content previously removed), Delete the reference to

11.274-2 (content previously removed), Delete the reference to 11.404 (content

previously removed), Delete the (RESERVED) immediately following the Title to Part 12

(new content), Add Subpart 12.1 - Acquisitions of Commercial Items – General (new

content), Add 12.102 (NMCARS) Applicability (new content), Add Subpart 12.2 – Special

Requirements for the Acquisition of Commercial Items (new content), Add 12.207

(NMCARS) Contract type (new content), Add Subpart 12.70 – Limitation on Conversion

of Procurement from Commercial Acquisition Procedures (new content), Add 12.7001

(NMCARS) Procedures (new content), Add Subpart 12.71 – Pilot Program for

Acquisition of Military-Purpose Nondevelopmental Items (new content), Add 12.7102-2

(NMCARS) Reporting requirements (new content), Delete the reference to 14.201-6

(content previously removed), Delete the reference to 14.201-6-100 (content previously

removed), Add the acronym (LPTA) in the title for 15.101-2, Delete the reference to

15.209 (content previously removed), Add 15.403-1 (NMCARS) Prohibition on obtaining

certified cost or pricing data (10 U.S.C. 2306a and 41 U.S.C. Chapter 35) (new content),

Add 15.403-3 (DFARS) Requiring data other than certified cost or pricing data (new

content), Delete the reference to Subpart 16.2 (content previously removed), Delete the

reference to 16.203 (content previously removed), Delete the reference to 16.203-4

(content previously removed), Delete the reference to 16.203-4-100 (content previously

removed), Add 16.302-100 Approval of cost-reimbursement type contracts (new

content), Delete the reference to 16.406 (content previously removed), Delete the

reference to 16.406-100 (content previously removed), Delete the reference to 16.504-

90 (content previously removed), Add 16.505-100 Orders for Engineering Services

and/or Program Management Services, as identified in NMCARS Annex 22 (new

content), Delete the reference to 16.506 (content previously removed), Delete the

reference to 16.506-100 (content previously removed), Change the title of 17.202-103 to

Use of options in Utility Service contracts, Change the title of Subpart 17.5 to

Interagency Acquisitions, Change the title of 17.500-100 to Scope of subpart,

Interagency and Intra-Agency Acquisitions, Delete the title (FAR) General of 17.502-1

and replace it with [Removed and Reserved] (content removed), Change the title of

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132

17.502-2 to (NMCARS) The Economy Act, Add Subpart- 17.7 Interagency Acquisitions:

Acquisitions by NonDefense Agencies on Behalf of the Department of Defense (new

content), Add 17.703 (NMCARS) Policy (new content), Add 17.770 (NMCARS)

Procedures (new content), Add 22.101-1 (NMCARS) General (new content), Delete the

reference to Subpart 22.10 (content previously removed), Delete the reference to

22.1006 (content previously removed), Delete the reference to 22.1006-100 (content

previously removed), Delete the reference to Subpart 23.100 (content previously

removed), Delete the reference to 23.1000 (content previously removed), Add Subpart

25.4 – Trade Agreements (new content), Add 25.401 (NCMARS) Exceptions (new

content), Add 25.403 (NMCARS) World Trade Organization Government Procurement

and Free Trade Agreements (new content), Delete the reference to 28.102-3 (content

previously removed), Delete the reference to 28.203-100 (content previously removed),

Delete “(RESERVED)” following the title to Part 30 (new content), Add Subpart 30.2 –

CAS Program Requirements (new content), Add 30.201-5 (NMCARS) Waiver (new

content), Delete the reference to 32.111 (content previously removed), Delete the

reference to 32.111-100 (content previously removed), Add 32.607-1 Installment

Payment (new content), Delete the reference to 32.613 (content previously removed),

Delete the reference to 36.609 (content previously removed), Add 37.103-100

Contracting Officer responsibility (new content), Add 37.502 Exclusions (new content),

Delete the reference to 37.1001 (content previously removed), Delete the reference to

Subpart 42.5 (content previously removed), Delete the reference to 42.570 (content

previously removed), Delete the reference to 42.570-100 (content previously removed),

Add 43.201-101 Use of Lean Modification Process for actions up to SAT (new content),

Change the title of 45.103-73 to Contracting Officer’s responsibilities (removed the

reference to NMCARS), Delete the reference to 45.107 (content previously removed),

Delete the reference to 45.107-100 (content previously removed), Delete the reference

to 46.407 (content previously removed), Delete the reference to 46.407-100 (content

previously removed), Delete the reference to Subpart 48.2 (content previously removed),

Delete the reference to 48.201 (content previously removed), Delete the title to 52.200

Scope of subpart and replace it with [Removed and Reserved], Delete the reference to

5252.201-9300 (content previously removed), Delete the title to 5252.209-9300

Organizational Conflicts of Interest and replace it with [Removed and Reserved], Delete

the reference to 5252.211-9301 (content previously removed), Delete the reference to

5252.214-9300 (content previously removed), Delete the reference to 5252.214-9301

(content previously removed), Delete the reference to 5252.215-9300 (content

previously removed), Delete the reference to 5252.215-9301 (content previously

removed), Delete the reference to 5252.215-9302 (content previously removed), Delete

the reference to 5252.216-9300 (content previously removed), Delete the reference to

5252.216-9301 (content previously removed), Delete the reference to 5252.216-9302

(content previously removed), Delete the reference to 5252.216-9303 (content

previously removed), Delete the reference to 5252.216-9305 (content previously

removed), Delete the reference to 5252.216-9306 (content previously removed), Delete

the reference to 5252.216-9307 (content previously removed), Delete the reference to

5252.216-9314 (content previously removed), Delete the reference to 5252.216-9315

(content previously removed), Delete the reference to 5252.217-9300 (content

previously removed), Delete the reference to 5252.217-9301 (content previously

removed), Delete the reference to 5252.222-9305 (content previously removed), “Delete

the reference to 5252.223-9300 (content previously removed), Delete the reference to

5252.223-9301 (content previously removed), Delete the reference to 5252.228-9300

(content previously removed), Delete the reference to 5252.228-9305 (content

previously removed), Delete the reference to 5252.228-9306 (content previously

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133

removed), Delete the reference to 5252.229-9302 (content previously removed), Delete

the reference to 5252.229-9304 (content previously removed), Delete the reference to

5252.232-9300 (content previously removed), Delete the reference to 5252.236-9300

(content previously removed), Delete the reference to 5252.236-9301 “Special Working

Conditions and Entry to Work Area” and replace it with “[Removed and Reserved]”,

Delete the reference to 5252.236-9302 (content previously removed), Delete the

reference to 5252.236-9303 (content previously removed), Delete the reference to

5252.236-9304 (content previously removed), Delete the reference to 5252.236-9305

(content previously removed), Delete the reference to 5252.236-9307 (content

previously removed), Delete the reference to 5252.236-9308 (content previously

removed), Delete the reference to 5252.236-9309 (content previously removed), Delete

the reference to 5252.236-9310 “Record Drawings” and replace it with “[Removed and

Reserved]”, Delete the reference to 5252.236-9312 (content previously removed), Delete

the reference to 5252.236-9313 (content previously removed), Delete the reference to

5252.237-9300 (content previously removed), Delete the reference to 5252.237-9301

(content previously removed), Delete the reference to 5252.237-9302 (content

previously removed), Delete the reference to 5252.242-9300 (content previously

removed), Delete the reference to 5252.242-9305 (content previously removed), Delete

the reference to 5252.245-9302 (content previously removed), Delete the reference to

5252.246-9303 (content previously removed), Delete the reference to 5252.246-9304

(content previously removed), and, Delete the reference to 5252.248-1 (content

previously removed).

(2) 1.170 (NMCARS) Peer Reviews, changed Director, Defense Pricing/Defense

Procurement and Acquisition Policy (DPAP) to Director, Defense Pricing and Contracting

(DPC) in six (6) locations.

(3) 1.170 (NMCARS) Peer Reviews, subparagraph (a) revised to clarify that the

Postaward peer reviews shall be conducted at the midpoint of the performance period to

allow time to finalize recommendations prior to exercising the option period.

(4) 1.170 (NMCARS) Peer Reviews, subparagraph (c)(i) revised to clarify that the review

shall be independent of the Contracting Officer whose procurement is the subject of the

review and when practicable, be independent of the Source Selection Authority (SSA).

(5) 1.602-1-101 NAVFAC solicitation/contract language, Authority, subparagraph (a)

revised to specify the location in the two (2) different Construction Specifications Institute

(CSI) formats, that the language, if applicable, should be included.

(6) 1.602-2 (DFARS) Authorized representatives of the Contracting Officer,

subparagraph (a)(1) revised to clarify that a COR shall be designated for all service

contracts.

(7) 1.602-2 (DFARS) Authorized representatives of the Contracting Officer,

subparagraph (a)(2) revised to require the COR appointment to be in the Joint

Appointment Module (JAM). Due to system constraints, COR appointment shall occur

post award and shall use the smartform designation letter in JAM.

(8) 1.602-2 (DFARS) Authorized representatives of the Contracting Officer,

subparagraph (a)(3)(i) revised to update COR training requirements, to add CLC 206

COR in a Contingency Environment for CORs supporting contingency operations and to

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134

update the DoD Instruction 5000.72 to include Change 1 of August 2018. Additionally,

subparagraph (a)(3)(i) revised to delete the reference to CORT tool and replace it with

JAM and the Surveillance and Performance Monitoring module (SPM).

(9) 1.602-2 (DFARS) Authorized representatives of the Contracting Officer,

subparagraph (a)(4) revised to clarify that CORs shall maintain an electronic file in SPM

and the file must include the items identified in DFARS PGI 202.602-2(d)(vi).

(10) 1.602-2 (DFARS) Authorized representatives of the Contracting Officer,

subparagraph (a)(5) revised to clarify that the Contracting Officer’s review shall be

documented in SPM.

(11) 1.602-2 (DFARS) Authorized representatives of the Contracting Officer,

subparagraph (b)(1) revised to clarify that the Echelon III/IV CCOs may delegate COAR

authority but are not required to do so.

(12) 1.602-2 (DFARS) Authorized representatives of the Contracting Officer,

subparagraph (b)(3)(ii) revised to add new language establishing minimum experience

requirements for COAR delegations between $150,000 and $250,000. In these

instances, a minimum of two years’ applicable experience in a FEAD/ROICC

environment or equivalent is required along with prior COAR experience.

(13) 1.602-2 (DFARS) Authorized representatives of the Contracting Officer,

subparagraph (b)(4) revised to change the dollar threshold to “below $250,000,” that

COARs may be delegated authority to negotiate in-scope modification changes on

construction contracts.

(14) 1.603-2 (DFARS) Selection, subparagraphs (a)(1)(ii) and (a)(2)(ii) revised to remove

the reference to both SAM 101 and IRM 101 as courses that could be used in lieu of ISA

101. The courses are no longer available.

(15) 1.603-2 (DFARS) Selection, subparagraphs (a)(3)(ii) and (a)(4)(ii) revised to clarify

the training requirements include those from the previous level and those required for

either Level II or Level III as appropriate.

(16) 1.603-3 Appointment, subparagraph (d) revised to clearly identify the Warrants

Annual Report requirement and to identify where and when it should be submitted.

(17) 1.691-2-101 Internal Business Assessment, revised to clarify that the Internal

Business Assessment is an annual requirement and to add the following note: “An

activity receiving a PMAP rating of Satisfactory or Highly Satisfactory will not be required

to complete an IBA in the following Fiscal Year. Additionally, based on a reduction in

procurement risk, an activity receiving a “Highly Satisfactory” PMAP rating will be

automatically granted a waiver to the annual IBA submission requirement for the second

Fiscal Year following the PMAP review.”

(18) 4.604 (NMCARS) Responsibilities, subparagraph (3)(i) revised to change the due

dates of the quarterly report to 1 February, 1 May, 1 August and 1 November.

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135

(19) 4.604 (NMCARS) Responsibilities, subparagraph (3)(ii) revised to change the due

date of the annual report to 1 November and to correct the title of the report to Contract

Action Report, Data Verification and Validation (V&V) certification.

(20) 4.804-1 (NMCARS) Closeout by the office administering the contract, subparagraph

(S-90) revised to eliminate both the quarterly and the annual Backlog of Annual

Overaged Contracts report and to replace them with a Monthly Closeout Metric Report

that will be submitted by the Echelon II eACQ Director.

(21) 4.805 Storage, handling and disposal of contract files, due to changes in electronic

acquisition systems, deleted “CORT Tool” and replace it with Joint Appointment Module

(JAM) and Surveillance and Performance Monitoring module (SPM). Also changed

SeaPort-e to Seaport NXG.

(22) SUBPART 6.2 – FULL AND OPEN COMPETITION AFTER EXCLUSION OF

SOURCES added (new content).

(23) 6.202 (NMCARS) Establishing or maintaining alternative sources, this paragraph

with its subparagraphs (b)(1)(i) and (b)(1)(ii) is added to establish the NAVFAC policy on

obtaining approval of determinations to exclude a source.

(24) 6.304-101 Bridge contract action approvals, revised to add subparagraph (f)

outlining the approval requirements if the bridge action is for Engineering Services (not

those procured under the Selection of Architects and Engineers statute) and/or Program

Management Services (see NMCARS Annex 22) and it does not qualify for an exception

at NMCARS 5237.102; and Seaport is not being used.

(25) 6.502 (NMCARS) Duties and responsibilities, subparagraph (b)(2) is added and

identifies the annual competition advocate activities report with a due date of 15

December.

(26) 7.103 (NMCARS) Agency-head responsibilities, specifically the approval

requirements table for Streamlined Acquisition Plans (STRAPs) located immediately

following subparagraph (e), has been revised to include a new row for Total Planned

Dollar Value between >$100M up to and including $250M (all years) for EXWC ONLY as

authorized by FY2017 NDAA Section 233 Pilot Program for the Enhancement of the

Research, Development, Test and Evaluation Centers, Phase II, Sprint 1, with the

Decision Authority/Approval at the NAVFAC EXWC Chief of the Contracting Office

(CCO).

(27) 7.103 (NMCARS) Agency-head responsibilities, specifically the first asterisked note

following subparagraph (e) has been revised to include the language “For NAVFAC

EXWC ONLY: Actions under $2,000,000 (including task or delivery orders) may utilize

the acquisition development plan in NAVFAC BMS in lieu of NMCARS Annex 21,

MOPAS-S as authorized under FY2017 NDAA Section 233 Pilot Program for the

Enhancement of the Research, Development, Test and Evaluation Centers, Phase II,

Sprint 1 (Section 233).”

(28) 7.103 (NMCARS) Agency-head responsibilities, subparagraph (e), the note

preceded by three asterisks is revised to clarify that STRAP documents submitted for

approval by DASN(AP)/SSM must be submitted via the Echelon III or IV CCO, the

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136

appropriate Echelon II Division Director and the Associate Director for Small Business.

The note also advises that the Echelon II Division Director will coordinate the review by

the Associate Director for Small Business.

(29) 7.107 (NMCARS) Additional requirements for acquisitions involving consolidation,

bundling, or substantial bundling, new heading paragraph added.

(30) 7.107-2 (NMCARS) Consolidation, new paragraph added providing review/approval

thresholds and approval authorities for the determination that use of a consolidated

contract is necessary and justified.

(31) 7.107-2 (NMCARS) Consolidation, specifically subparagraph (e)(2)(i)(A), new

subparagraph a. that reads as follows has been added: “a. For NAVFAC EXWC

ONLY: As authorized under FY2017 NDAA Section 233 Pilot Program for the

Enhancement of the Research, Development, Test and Evaluation Centers, Phase II,

Sprint 1 (Section 233), for actions greater than $50M and less than $100M, the

determination must be submitted for Head of the Contracting Activity (HCA) approval via

the Echelon III CCO, the Echelon II Division Director, and the Assistant Commander for

Acquisition.”

(32) 7.107-2 (NMCARS) Consolidation, specifically subparagraph (e)(2)(i)(C), new

subparagraph a. that reads as follows has been added: “a. For NAVFAC EXWC

ONLY: As authorized under FY2017 NDAA Section 233 Pilot Program for the

Enhancement of the Research, Development, Test and Evaluation Centers, Phase II,

Sprint 1 (Section 233), for actions greater than $2,000,000 and up to $50M, the

determination must be submitted for NAVFAC EXWC Commander Officer approval via

the Echelon III CCO.”

(33) 7.107-3 (NMCARS) Bundling, new paragraph added and provides guidance on the

appropriate review and routing requirements of the determination that use of a

consolidated and bundled contract is necessary and justified being submitted for

approval by DASN(AP).

(34) 7.470 (DFARS) Statutory requirement, to ensure clarity the term “NAVFAC

Commander” is replaced with “HCA” in two locations in this paragraph.

(35) 8.404 Use of Federal Supply Schedules (FSS) subparagraphs renumbered to

match that in higher regulations. Additionally, subparagraph (k) and (k)(2) revised to

permit use of FSS for roofing repairs.

(36) 8.404 Use of Federal Supply Schedules (FSS), subparagraph (k)(4) the note that

read “Knowledge based services procured through GSA One Acquisition Solution for

Integrated Services (OASIS) are not limited to SAT” is deleted in its entirety. The

information has been relocated to NFAS 16.505(d).

(37) 8.404 Use of Federal Supply Schedules (FSS), subparagraph (k)(4), the second

note that read “Note: For COTS orders above the SAT, additional documentation is

required in accordance with NFAS 17.502-1” has been deleted in its entirety and

replaced with two (2) new notes as follows: Note: For Orders above the SAT, ensure

compliance with FAR 8.405-4; and, Note: For Orders above $550,000, ensure

compliance with FAR/DFARS/NMCARS at Subparts 17.5 and 17.7 (as applicable).

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137

(38) 8.404 Use of Federal Supply Schedules (FSS), subparagraph (n) corrected

terminology “sole source” to “limited source” to match that used in higher regulation.

(39) 8.405-6 (NMCARS) Limiting Sources, new paragraph added providing guidance

that no solicitation for Engineering Services (not those procured under the Selection of

Architects and Engineers statute) and/or Program Management Services (see NMCARS

Annex 22) which negates the use of SeaPort shall be issued earlier than three working

days after the limited sources justification is provided to DASN(AP). The paragraph also

provides guidance on approval requirements and the required routing. Subparagraph

(2)(a) clarifies that if the limited sources justification cites FAR 8.405-6(a)(1)(i)(A) there is

no requirement to delay solicitation issuance but the approved justification is required to

be submitted via the Echelon II Division Director to DASN(AP) within two working days

from approval.

(40) 9.506 Procedures, new paragraph with its subparagraph (b) added to establish

NAVFAC’s policy on the process for obtaining review and approval of a recommended

course of action (which may include proposed provisions or draft contract clauses) to

avoid, neutralize or mitigate a potential organizational conflict of interest

(41) 9.507 Solicitation provisions and contract clause, title deleted and replaced with

[Removed and Reserved].

(42) 9.507-2 Contract clause, title and all content deleted and replaced with [Removed

and Reserved].

(43) 11.104 Use of brand name or equal purchase descriptions, title and all content

deleted and replaced with [Removed and Reserved].

(44) 11.274 [Removed and Reserved] (content deleted).

(45) 11.274-2 [Removed and Reserved] (content deleted).

(46) 11.402 Factors to consider in establishing schedules, the language at subparagraph

(3) that read: “All time extensions authorized by FAR clause 52.249-10, Default (Fixed

Price Construction) must be justified in writing. The Contracting Officer may approve

extensions less than 60 days. Extensions of 60 days or greater must be approved at

one level above the Contracting Officer.” Is deleted in its entirety, the requirement is no

longer valid. Existing subparagraph (4) renumbered to subparagraph (3).

(47) 11.404 [Removed and Reserved] (content deleted).

(48) 11.404-100 NAVFAC solicitation/contract language, Phased Construction Schedule,

revised to specify the location in the two (2) different Construction Specifications Institute

(CSI) formats, that the language, if applicable, should be included. Additionally, to

ensure consistent use of terminology, “calendar days” changed to “days” in three (3)

locations.

(49) 11.502 Procedures, added the acronym (IGE) in subparagraph (a). Additionally, to

ensure consistent use of terminology, “calendar days” changed to “days” in eight (8)

locations of this paragraph and its subparagraphs.

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138

(50) SUBPART 12.1 – ACQUISITION OF COMMERCIAL ITEMS – GENERAL – new

subpart added.

(51) 12.102 (NMCARS) Applicability new paragraph with its subparagraph (a)(i)(C)

added to implement NAVFAC’s policy for obtaining DASN(AP) concurrence on the

determination that expert and consultant services are commercial items.

(52) SUBPART 12.2 – SPECIAL REQUIREMENTS FOR THE ACQUISITION OF

COMMERCIAL ITEMS – new subpart added.

(53) 12.207 (NMCARS) Contract type, new paragraph with its subparagraph (b)(iii)

added to implement NAVFAC’s policy for obtaining DASN(AP) approval on required

determinations to use time-and-materials and labor-hour contracts.

(54) SUBPART 12.70 – LIMITATION ON VERSION OF PROCUREMENT FROM

COMMERCIAL ACQUISITION PROCEDURES – new subpart added.

(55) 12.7001 (NMCARS) Procedures, new paragraph with its subparagraph (a)(2) added

to implement NAVFAC’s policy for obtaining Head of Contracting Activity (HCA)

determination to convert a procurement from commercial acquisition procedures. The

paragraph also provides guidance that in the case of procurement valued at more than

$100M, award must be withheld until a copy of the HCA determination is provided to

DPC via DASN(AP).

(56) SUBPART 12.71 – PILOT PROGRAM FOR ACQUISITION OF MILITARY-

PURPOSE NONDEVELOPMENTAL ITEMS – new subpart added.

(57) 12.7102-2 (NMCARS) Reporting requirements, new paragraph with its

subparagraph (a) added to identify the required annual report with its due date of 1

October.

(58) 13.270 (DFARS) Use of the Government wide commercial purchase card (GCPC),

subparagraph (c) added a new sentence at the end of this subparagraph to clarify that

the NAVFAC EXWC Echelon III Commanding Officer may make the written

determination pursuant to DFARS subpart 213.270(b)(2).

(59) 14.201-6 [Removed and Reserved] (content deleted).

(60) 14.201-6-100 [Removed and Reserved] (content deleted).

(61) 14.402-1 Unclassified bids, subparagraph (a)(4) added the word independent

immediately preceding “Government estimate” and added the acronym (IGE).

(62) 14.402-1 Unclassified bids, subparagraph (b)(1) revised to add the contract

specialist as an individual authorized to open bids.

(63) 15.102-1 Lowest price technically acceptable (LPTA) source selection process, the

acronym (LPTA) was added to the title of the paragraph. Additionally, this paragraph

revised to permit the Contracting Officer to limited the number of proposals required to

be evaluated for technical acceptability to the lowest priced offer.

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139

(64) 15.209 [Removed and Reserved] (content deleted).

(65) 15.209-100, NAVFAC provision/solicitation language, All or None Offers, revised to

specify the location in the two (2) different Construction Specifications Institute (CSI)

formats that the language, if applicable, should be included.

(66) 15.303 Responsibilities, specifically subparagraph (c), new subparagraph (3) added

and reads as follows: “(3) For NAVFAC EXWC ONLY: As authorized under FY2017

NDAA Section 233 Pilot Program for the Enhancement of the Research, Development,

Test and Evaluation Centers, Phase II, Sprint 1 (Section 233), the NAVFAC EXWC CCO

may waive the requirement to use multiple evaluation boards for actions greater than

$100M up to but less than $250M.”

(67) 15.303 Responsibilities, subparagraph (d)(1) revised to clarify that the online

course, NAVFAC CTC-W415 Source Selection, is available in Total Workforce

Management Services (TWMS). This subparagraph is also revised to clarify that in

cases where board members are individuals outside of NAVFAC, their equivalent

training (for CTC 415) will be approved by the CCO on a case-by-case basis.

(68) 15.303 Responsibilities, subparagraph (d)(2) revised to clarify that NAVFAC

engineers and architects appointed as members of the SSEB performing evaluations of

Non-Cost/Price factors which include engineering, design, construction or oversight of

engineering, design and construction must be licensed professional engineers or

registered architects unless a waiver is granted pursuant to NAVFACINST 3540.1D.

The subparagraph also clarifies that the licensing requirements for the chairperson or

team lead shall not be waived under any circumstances. Additionally, language is added

to clarify that non-licensed engineers and architects may be appointed to serve on

selection boards, evaluation boards, or evaluation teams for contracts that do NOT

involve engineering, design, construction or any oversight of design, engineering or

construction.

(69) 15.403-1 (NMCARS) Prohibition on obtaining certified cost or pricing data (10

U.S.C. 2306a and 41 U.S.C. Chapter 35) with its subparagraph (c)(4)(B) added to

identify the annual report of Truth in Negotiations Act waivers and its due date of 15

October.

(70) 15.403-3 (DFARS) Requiring Data Other than Certified Cost or Pricing Data, new

paragraph with its subparagraphs (a)(4) and (d) added to implement NAVFAC’s policy

on obtaining HCA determinations and identifies the quarterly report requirement with due

dates of 20 June, 20 October, 20 January and 20 April.

(71) 15.404-4 Profit, new subparagraph (b)(1) added to establish the NAVFAC policy for

construction execution of POL under the Clean, Inspect, Repair (CIR) process only,

Echelon III and IV CCOs may approve the use of maximum profit rates for task or

delivery orders that will be binding to modifications to t hos task or delivery orders.

(72) Subpart 16.2 [Removed and Reserved] (content deleted).

(73) 16.203 [Removed and Reserved] (content deleted).

(74) 16.203-4 [Removed and Reserved] (content deleted).

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140

(75) 16.203-4-100 [Removed and Reserved] (content deleted).

(76) 16.302-100 Approval of cost-reimbursement type contracts, new paragraph added

requiring the approval of the Assistant Commander for Acquisition prior to committing to

any Streamlined Acquisition Plan (STRAP) or Management and Oversight Process for

the Acquisition of Services-Streamlined (MOPAS-S) to enter into or award a cost

reimbursement contract (inclusive of options) in excess of $50M (if awarded prior to

October 1, 2019) or in excess of $25M (if awarded on or after October 1, 2019).

(77) 16.406 [Removed and Reserved] (content deleted).

(78) 16.406-100 [Removed and Reserved] (content deleted).

(79) 16.503 Requirements contracts, subparagraphs renumbered to (e) and (f) to match

that used in higher regulation.

(80) 16.504 Indefinite-quantity contracts, subparagraphs (a) and (b) renumbered to

(a)(4)(viii) and (a)(4)(ix) to match that used in higher regulation.

(81) 16.504 Indefinite-quantity contracts, new subparagraph (c)(1)(ii)(D) added to

implement NAVFAC’s policy for obtaining Assistant Secretary of the Navy for Research,

Development and Acquisition (ASN(RDA)) determination to award a task or delivery

order contract in an amount estimated to exceed $112M.

(82) 16.504-90 [Removed and Reserved] (content deleted).

(83) 16.504-100 NAVFAC solicitation/contract language, Minimum and Maximum Fees

[Architect-Engineer Indefinite Quantity Contracts], subparagraphs (a) and (b) are revised

to specify the location in the two (2) different Construction Specifications Institute (CSI)

formats, that the language, if applicable, should be included.

(84) 16.505 Ordering, subparagraphs renumbered to match that in higher regulation and

new subparagraph (e) to include a note are added to this paragraph to provide guidance

and approval requirements for use of Delivery/task orders under non-DoD

Governmentwide acquisition contracts (GWACS) and multi-agency contracts. The

subparagraph provides policy that these vehicles may be used with written approval of a

Contracting Officer a level above the individual assigned the action and are not limited to

the simplified acquisition threshold (SAT). GWACs or multi-agency contracts shall not

be used for A-E or construction. Additionally, GWACs or multi-agency orders for

recurring facilities support services shall be limited to those instances where they cannot

be procured as efficiently through a NAVFAC contract and shall use small business set-

asides to the maximum extent possible. The note to this subparagraph requires that

orders for Engineering Services (not those procured under the Selection of Architects

and Engineers statute) and/or Program Management Services (see NMCARS Annex 22)

must consider use of Seaport and if Seaport is not used and the requirement is not

excepted by NMCARS 5237.102, a D&F shall be submitted for approval by DASN(AP).

(85) 16.505-70 Orders under multiple award contracts, subparagraph (c) revised to read

as follows: “(c) Capital Improvements (CI) construction projects over $100M shall not be

procured via a MAC task order unless a formal waiver is approved by the Echelon II CI

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141

and ACQ. However, this policy does not apply to the Global Contingency Construction

contract and no waiver is required.”

(86) 16.505-100 Orders for Engineering Services and/or Program Management

Services, as identified in NMCARS Annex 22, new paragraph added providing guidance

that prior to issuing any task or delivery order for Engineering Services (not those

procured under the Selection of Architects and Engineers statute) and/or Program

Management Services (see NMCARS Annex 22) the Contracting Officer shall consider

SeaPort for use. If SeaPort is not used and the requirement is not excepted, a D&F

shall be submitted for approval by DASN(AP). Subparagraph (a) provides the review

and routing requirements for submittal to DASN(AP). Subparagraph (b) provides

guidance on preparation and submittal of a class D&F for approval by DASN(AP) in

situations where repetitive task or delivery orders for these services are anticipated.

(87) 16.506 [Removed and Reserved] (content deleted).

(88) 16.506-100 [Removed and Reserved] (content deleted).

(89) 17.202-103 Use of options in Utility Service contracts, title revised from Use of

options in supplies or services. All previous content eliminated and relocated to NFAS

17.204(f). New content reads “Utility Service contracts, as defined in FAR 41.101, may

be awarded for periods not exceeding 10 years in accordance with NFAS 41.103 and

FAR 41.103. The overall term of a utility services contract using 40 U.S.C. 501 shall be

no more than 30 years, inclusive of the base and all options.”

(90) 17.204 Contracts, subparagraphs renumbered to match those in higher regulation

and begin with subparagraph (e). Subparagraph (e)(i)(C) revised to clarify that waiver

requests being submitted to DASN(AP) must be submitted with a copy of the approved

Streamlined Acquisition Plan (STRAP) or Management and Oversight Process for the

Acquisition of Services – Streamlined (MOPAS-S).

(91) 17.204 Contracts, subparagraph (f) includes relocated content from NFAS 17.202-

103 and reads: “The ordering period for task or delivery order contracts (excluding

facility support contracts that include both recurring and non-recurring work) including

contracts for construction, architect-engineering and knowledge based services, Blanket

Purchase Agreements, and Basic Ordering Agreements, may be for any period up to five

years without requiring separate one-year option periods per DFARS 217.204(e)(i)(A)

and must be specified in the basic contract. Written email approval from the respective

Echelon III/IV CCO is required when the ordering period will exceed 12 months on

indefinite delivery contracts.”

(92) 17.207 Exercise of options, new subparagraph (d) added and provides guidance if

exercising the option will extend Engineering Services (not those procured under the

Selection of Architects and Engineers statute) and/or Program Management Services

(see NMCARS Annex 22) SeaPort must be considered for use to procure the services.

If SeaPort is not used and the option does not qualify for an exception at NMCARS

5237.102, a D&F shall be submitted for approval by DASN(AP). The subparagraph also

provides guidance on the review and routing requirements for any D&F.

(93) SUBPART 17.5 – INTERAGENCY ACQUISITIONS (title revised to match that used

in higher regulations).

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142

(94) 17.500-100 Scope of subpart, Interagency and Intra-Agency acquisitions, expanded

to more clearly define interagency and intra-agency acquisitions and provides examples

of each. Also includes definitions of terms unique to interagency and intra-agency

acquisitions. Title revised slightly to reference intra-agency acquisitions.

(95) 17.502-1 (FAR) General, title and content deleted and replaced with [Removed and

Reserved].

(96) 17.502-2 (NMCARS) The Economy Act, title revised to match that used in higher

regulations. Subparagraph (a) expanded to provide separate guidance for assisted and

direct interagency acquisitions and provided examples for each.

(97) 17.502-2 (NMCARS) The Economy Act, subparagraph (b) expanded the approval

table to provide separate approval requirements for Economy Act direct and assisted

interagency acquisitions to permit approval of direct acquisitions at a lower level.

Additionally, clarified that approval of the D&F will also document the review and

approval required by NMCARS 5217.770 (if applicable).

(98) 17.502-2 (NMCARS) The Economy Act, specifically subparagraph (b) note (4) is

revised to eliminate the language “the best procurement approach required by FAR

17.502-1(a)(1) and,” This language referenced a best procurement approach

requirement that has been eliminated in higher regulations.

(99) 17.502-2 (NMCARS) The Economy Act, subparagraph (d) revised slightly to provide

information on how the report should be submitted (using the Inter-Intra Agency Log).

(100) SUBPART 17.7 INTERAGENCY ACQUISITIONS: ACQUISITIONS BY

NONDEFENSE AGENCIES ON BEHALF OF THE DEPARTMENT OF DEFENSE – new

Subpart added.

(101) 17.703 (NMCARS) Policy, new paragraph with its subparagraph (c) added to

implement NAVFAC’s policy that the annual report of nondefense agency certifications

of compliance has a due date of 15 October.

(102) 17.770 (NMCARS) Procedures, new paragraph with subparagraphs (a) through (d)

added to provide guidance related to documenting the review and approval requirement

in NMCARS 5217.770.

(103) 17.7404-1 Authorization, new subparagraph (a)(1)(i) added to implement

NAVFAC’s policy for construction execution of POL under the CIR process only, UCA

approval authority up to and including $4,000,000 is delegated to the Echelon III/IV

Commanders/Commanding Officers and the CCO. The policy permits redelegation to

Contracting Officers up to a maximum of $250K per UCA.

(104) 17.7404-1 Authorization, new subparagraph (a)(2)(i) added to implement

NAVFAC’s policy for construction execution of POL under the CIR process only, UCA

approval authority over $4,000,000 is the appropriate Echelon II Division Director.

(105) 19.805-1 General, paragraph revised to clarify the required routing for requests for

approval by the Assistant Commander for Acquisition/Deputy Director for Acquisition.

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143

(106) 22.101-1 (NMCARS General) subparagraph (a) revised to clarify that guidance on

labor relations can be obtained in SECNAVINST 4200.36A or successor instruction.

(107) 22.503 (FAR) Policy, paragraph revised to identify paragraph 2.3.2 of NMCARS

Annex 18 as the location in the Streamlined Acquisition Plan (STRAP) to be used to

document the Contracting Officer’s determination whether use of a Project Labor

Agreement (PLA) is appropriate.

(108) SUBPART 22.10 [Removed and Reserved] (content deleted).

(109) 22.1006 [Removed and Reserved] (content deleted).

(110) 22.1006-100 [Removed and Reserved] (content deleted).

(111) SUBPART 23.100 [Removed and Reserved] (content deleted).

(112) 23.1000 [Removed and Reserved] (content deleted).

(113) 25.103 (DFARS) Exceptions, subparagraph (a)(ii)(B)(2) revised to clarify that

approval of the public interest determination for a procurement value at or below the

SAT is a level above the Contracting Officer. Approval above the SAT but less than

$1,500,000 is the HCA.

(114) 25.103 (DFARS) Exceptions, revised to include the dollar value thresholds and

respective approval authority. Specifically subparagraph (a)(ii)(B)(3) is revised to clarify

that approval of the public interest determination for a procurement valued at $1,500,000

or more is ASN(RDA).

(115) 25.103 (DFARS) Exceptions, subparagraph (b)(ii)(C) revised to clarify that

approval of the nonavailability determination for a procurement value at or below the

SAT is a level above the Contracting Officer. Approval for a procurement valued above

the SAT but less than $1,500,000 is the Echelon III/IV CCO. Approval for procurements

valued at $1,500,000 or more is the HCA.

(116) 25.202 (NMCARS) Exceptions, is revised to include the dollar value thresholds

and respective approval authority. Approval of the impractical or inconsistent with public

interest determination for procurements valued at or below the SAT is a level above the

Contracting Officer. Approval for procurements valued above the SAT but less than

$1,500,000 is the Echelon III/IV CCO. Approval for procurements valued at $1,500,000

or more is the HCA.

(117) SUBPART 25.4 – TRADE AGREEMENTS – new subpart added.

(118) 25.401 (NMCARS) Exceptions, new paragraph with its subparagraph (a)(2)(A)

added to implement NAVFAC’s policy for obtaining approval by the Under Secretary of

Defense for Acquisition and Sustainment (USD(A&S) of the determination to exclude an

acquisition of a product from the provisions of FAR subpart 25.4.

(119) 25.403 (NMCARS) World Trade Organization Government Procurement and Free

Trade Agreements with its subparagraph (c)(ii) added to implement NAVFAC’s policy for

obtaining approval by the Under Secretary of Defense for Acquisition and Sustainment

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144

(USD(A&S)/Director Defense Pricing and Contracting (DPC) of the determination for a

national interest waiver.

(120) 28.102-3 [Removed and Reserved] (content deleted).

(121) 28.102-3-100 NAVFAC solicitation/contract language, Notice of Bonding

Requirements, subparagraph (a) revised to specify the location in the two (2) different

Construction Specifications Institute (CSI) formats, that the language, if applicable,

should be included.

(122) 28.102-3-101 Alternate Protection for Construction in a foreign country,

subparagraph (b) revised to specify the location in the two (2) different Construction

Specifications Institute (CSI) formats, that the language, if applicable, should be

included.

(123) 28.103-1 General, subparagraph (a) language revised to clarify that bonds shall

not be required for facilities support service contracts awarded pursuant to Section 8(a)

of the Small Business Act.

(124) 28.203-100 [Removed and Reserved] (content deleted).

(125) SUBPART 30.2 – CAS PROGRAM REQUIREMENTS – new subpart added.

(126) 30.201-5 (NMCARS) Waiver, new paragraph with its subparagraphs (b) and (e)

added and implements NAVFAC’s policy on obtaining approval determinations of CAS

Waivers and establishes an annual reporting requirement with a due date of 1

November.

(127) 32.111 [Removed and Reserved] (content deleted).

(128) 32.111-100 [Removed and Reserved] (content deleted).

(129) 32.604 Demand for payment, subparagraph (a)(3) deleted in its entirety. The

information is duplicative from that in higher regulation.

(130) 32.604 Demand for payment, existing subparagraph (a)(5)(ii) renumbered to

(b)(5)(ii) to match that used in higher regulation. Additionally, subparagraph revised to

include information on alternate debt payment methods.

(131) 32.604 Demand for payment, new subparagraph (f) added and implements

NAVFAC’s policy that the contract file must remain open until the debt is collected.

(132) 32.607-1 Installment Payment, new paragraph with its subparagraphs (a) and (b)

added to implement NAVFAC’s policy should a request for installment payment of debt

be received.

(133) 32.607-2 Deferment of collection, existing subparagraphs (a) and (b) are deleted in

their entirety. The information is duplicative of that in higher regulation.

(134) 32.607-2 Deferment of collection, existing subparagraphs (c)(1) and (2) are

renumbered to (c)(2)(e) and (c)(2)(f) to match that used in higher regulation.

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145

(135) 32.613 [Removed and Reserved] (content deleted).

(136) 32.702 Policy, new subparagraph (a)(1) added to implement NAVFAC’s policy for

construction execution of POL under the CIR process only to Tank Requirements Repair

(TRR) form can be used as a promise to pay if signed by the requestor’s financial

management or comptroller representative.

(137) 32.1100 Final payment for construction and architect-engineer contracts,

subparagraph (e) revised to ensure consistent use of terminology, “calendar days”

replaced with “days.”

(138) 32.7002 (NMCARS) Policy, subparagraph (a) is revised to clarify that approval

from DASN(AP) is required prior to determining that electronic submission of payment

requests and receiving reports would be unduly burdensome to the contractor.

(139) 33.9001 Claims approval requirements, specifically subparagraph (a)(2) revised to

indicate that claims over $25M require review/approval by DASN(AP).

(140) 36.5-100 NAVFAC solicitation/contract language, Utilities for Construction and

Testing, revised to specify the location in the two (2) different Construction Specifications

Institute (CSI) formats, that the language, if applicable, should be included.

(141) 36.5100 NAVFAC provision and contract clauses, subparagraphs (a) and (b) are

deleted in their entirety. These subparagraphs reference NFAS clauses that have been

removed. Existing subparagraph (c) is renumbered to subparagraph (a).

(142) 36.601-3-100 Indefinite quantity architect-engineer contracts, subparagraph (b)

revised to eliminate the language “contracts shall be restricted to small project requiring

similar types of work.”

(143) 36.601-3-100 Indefinite quantity architect-engineer contracts, subparagraph (c)

revised to require approval by the appropriate Competition Advocate on the decision not

to compete a task order under a multiple award contract.

(144) 36.602-2 Evaluation boards, subparagraph (a) revised to clarify that engineers and

architects serving on boards for contracts which include engineering, design,

construction or oversight of engineering, design and construction shall be registered

professionals unless a waiver is granted pursuant to NAVFACINST 3540.1D. The

subparagraph also clarifies that the licensing requirements for the chairperson shall not

be waived under any circumstances. Additionally, this subparagraph clarifies that for

board members outside of NAVFAC, their equivalent training (for CTC 466) will be

approved by the CCO on a case-by-case basis.

(145) 36.602-2 Evaluation boards, new subparagraph (c) added and clarifies that non-

licensed engineers and architects may be appointed to serve on selection boards,

evaluation boards, or evaluation teams for contracts that do NOT involve engineering,

design, construction or any oversight of design, engineering or construction.

(146) 36.605 Government cost estimate for architect-engineer work, added the acronym

(IGE) to ensure consistent use of terminology.

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(147) 36.609 [Removed and Reserved] (content deleted).

(148) 36.609-100 Instructions for use of NAVFAC language, subparagraphs (b), (c), (e)

and (f) revised to specify the location in the two (2) different Construction Specifications

Institute (CSI) formats, that the language, if applicable, should be included.

(149) 36.609-101 NAVFAC solicitation/contract language, Drawings Prepared by an

Architect-Engineer, revised to specify the location in the two (2) different Construction

Specifications Institute (CSI) formats, that the language, if applicable, should be

included.

(150) 36.609-102 NAVFAC solicitation/contract language, Key Personnel, revised to

specify the location in the two (2) different Construction Specifications Institute (CSI)

formats, that the language, if applicable, should be included.

(151) 37.102-100 Policy – Government Estimate of Services cost, added the acronym

(IGE) in four (4) locations to ensure consistent use of terminology.

(152) 37.103-100 Contracting offering responsibility, new paragraph added to

establish/incorporate the mandatory SeaPort consideration when procuring Engineering

Services or Program Management Services (not those procured under the Selection of

Architects and Engineers statute).

(153) 37.192 Service Acquisition Workshops (SAWs), subparagraph (a) revised to clarify

that multi-functional teams for service acquisitions with a total estimated value (including

options) or $500M or more or an annual value of $250M or more shall participate in a

SAW or equivalent program.

(154) 37.502 Exclusions, new paragraph with its subparagraph (b) added and reads as

follows: “(b) For NAVFAC EXWC ONLY: As authorized under FY2017 NDAA Section

233 Pilot Program for the Enhancement of the Research, Development, Test and

Evaluation Centers, Phase II, Sprint 1 (Section 233), the NMCARS requirement to use

NMCARS Annex 21 MOPAS-S for supply contracts when incidental services are greater

than the SAT is waived.”

(155) 37.504 Contracting Officer’s Responsibilities, specifically subparagraph (a), new

subparagraph (3) added and reads as follows: “(3) For NAVFAC EXWC ONLY: Actions

under $2,000,000 (including task or delivery orders) may utilize the acquisition

development plan in NAVFAC BMS in lieu of NMCARS Annex 21, MOPAS-S as

authorized under FY2017 NDAA Section 233 Pilot Program for the Enhancement of the

Research, Development, Test and Evaluation Centers, Phase II, Sprint 1 (Section 233).

Approval authorities remain the same as in the table below.”

(156) 37.1001 [Removed and Reserved] (content deleted).

(157) SUBPART 42.5 [Removed and Reserved] (content deleted).

(158) 42.570 [Removed and Reserved] (content deleted).

(159) 42.570-100 [Removed and Reserved] (content deleted).

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(160) 43.201-101 Use of Lean Modification Process for actions up to SAT, new

paragraph added establishing policy that the lean modification process shall be used for

all in-scope bilateral modifications up to the SAT.

(161) 45.103-73 Contracting Officer responsibilities, removed reference to NMCARS

from the title. Additionally, the quarterly due dates for reporting to Echelon II on

Government-furnished property compliance were changed to the 30

of January, April,

July, and October.

(162) 45.107 [Removed and Reserved] (content deleted).

(163) 45.107-100 [Removed and Reserved] (content deleted).

(164) 46.407 [Removed and Reserved] (content deleted).

(165) 46.407-100 [Removed and Reserved] (content deleted).

(166) SUBPART 48.2 [Removed and Reserved] (content deleted).

(167) 48.201 [Removed and Reserved] (content deleted).

(168) 52.200 Scope of subpart deleted and replaced with [Removed and Reserved].

(169) 5252.201-9300 [Removed and Reserved] (content deleted).

(170) 5252.209-9300 Organizational Conflicts of Interest deleted and replaced with

[Removed and Reserved].

(171) 5252.211-9301 [Removed and Reserved] (content deleted).

(172) 5252.214-9300 [Removed and Reserved] (content deleted).

(173) 5252.214-9301 [Removed and Reserved] (content deleted).

(174) 5252.215-9300 [Removed and Reserved] (content deleted).

(175) 5252.215-9301 [Removed and Reserved] (content deleted).

(176) 5252.215-9302 [Removed and Reserved] (content deleted).

(177) 5252.216-9300 [Removed and Reserved] (content deleted).

(178) 5252.216-9301 [Removed and Reserved] (content deleted).

(179) 5252.216-9302 [Removed and Reserved] (content deleted).

(180) 5252.216-9303 [Removed and Reserved] (content deleted).

(181) 5252.216-9305 [Removed and Reserved] (content deleted).

(182) 5252.216-9306 [Removed and Reserved] (content deleted).

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(183) 5252.216-9307 [Removed and Reserved] (content deleted).

(184) 5252.216-9314 [Removed and Reserved] (content deleted).

(185) 5252.216-9315 [Removed and Reserved] (content deleted).

(186) 5252.217-9300 [Removed and Reserved] (content deleted).

(187) 5252.217-9301 [Removed and Reserved] (content deleted).

(188) 5252.222-9305 [Removed and Reserved] (content deleted).

(189) 5252.223-9300 [Removed and Reserved] (content deleted).

(190) 5252.223-9301 [Removed and Reserved] (content deleted).

(191) 5252.228-9300 [Removed and Reserved] (content deleted).

(192) 5252.228-9305 [Removed and Reserved] (content deleted).

(193) 5252.228-9306 [Removed and Reserved] (content deleted).

(194) 5252.229-9302 [Removed and Reserved] (content deleted).

(195) 5252.229-9304 [Removed and Reserved] (content deleted).

(196) 5252.232-9300 [Removed and Reserved] (content deleted).

(197) 5252.236-9300 [Removed and Reserved] (content deleted).

(198) 5252.236-9301 Special Working Conditions and Entry to Work deleted in its

entirety [Removed and Reserved].

(199) 5252.236-9302 [Removed and Reserved] (content deleted).

(200) 5252.236-9303 [Removed and Reserved] (content deleted).

(201) 5252.236-9304 [Removed and Reserved] (content deleted).

(202) 5252.236-9305 [Removed and Reserved] (content deleted).

(203) 5252.236-9307 [Removed and Reserved] (content deleted).

(204) 5252.236-9308 [Removed and Reserved] (content deleted).

(205) 5252.236-9309 [Removed and Reserved] (content deleted).

(206) 5252.236-9310 Record Drawings deleted in its entirety [Removed and Reserved].

(207) 5252.236-9312 [Removed and Reserved] (content deleted).

(208) 5252.236-9313 [Removed and Reserved] (content deleted).

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(209) 5252.237-9300 [Removed and Reserved] (content deleted).

(210) 5252.237-9301 [Removed and Reserved] (content deleted).

(211) 5252.237-9302 [Removed and Reserved] (content deleted).

(212) 5252.242-9300 [Removed and Reserved] (content deleted).

(213) 5252.242-9305 [Removed and Reserved] (content deleted).

(214) 5252.245-9302 [Removed and Reserved] (content deleted).

(215) 5252.246-9303 [Removed and Reserved] (content deleted).

(216) 5252.246-9304 [Removed and Reserved] (content deleted).

(217) 5252.248-1 [Removed and Reserved] (content deleted).

(218) Appendix A – NAVFAC REPORTING REQUIREMENTS, has been revised to add:

the new Monthly Contract Closeout Metric Report; revise the due dates for the Quarterly

Verification and Validation (V&V) Report; revise the due dates for the Quarterly GFP

Compliance Report, add the Warrants Annual Report; revise the due date and correct

the report title of the Annual Contract Action Report, Data Verification and Validation

(V&V) Certification; add the Annual Competition Report, including projected competition

goal for current year; add the Annual Report on Pilot Program for Acquisition of Military-

Purpose Nondevelopmental Items; add the Annual Truth in Negotiation Act (TINA)

Waivers valued $19.5M or more and Commercial Item Exceptions to Cost/Pricing Data

valued at $19.5M or more; add the Annual Nondefense Agency Certification Report; add

the Cost Accounting Standards Waivers over $15M; delete the Quarterly Backlog of

Overaged Contracts (Close-outs) Report; and, delete the Annual Backlog of Overaged

Contracts (Close-outs) Report. Additionally, all reports included in Appendix A are listed

by type of report and then in the order they appear within NFAS.

(219) Appendix B – NAVFAC SUBJECT MATTER EXPERT CONTACT LIST, has been

revised to: update the telephone number for ACQ2 to 202-685-9135; Delete the

reference to NEPO from the ACQ3 list of categories and replace it with Expeditionary

Support; Add CVP FIAR responses and FISCAM responses to the ACQ4 list of

categories; Remove CORT and Data Lake from the list of modules under PIEE and to

replace them with JAM and SPM; Delete PPIRS from the list of modules under

IAE/SAM; Add FAADC; Delete eWGL, FIS, and NECO under the stand-alone systems

list; Change Seaport e to Seaport NXG; and Correct the title of the Procurement

Management Assessment Program (PMAP).