1. Federal Acquisition Service U.S. General Services Administration Federal Acquisition Service: FAS Implications for Section 863 of the Duncan Hunter National Defense Authorization Act – FY09 FAS Implications for Section 863 of the Duncan Hunter National Defense Authorization Act - FY09 January 21, 2011

2. 2  Overview  Call for Action  Regulatory Changes  Impacts on Federal Supply Schedules Program  FAR Subpart 8.4 Restructuring  Additional Competition Requirements  Additional Requirements When Limiting Sources  Impacts on Indefinite-Delivery Contracts  Additional Competition Requirements  Additional Requirements When Limiting Sources Contents Overview Call for Action Regulatory Changes Impacts on Federal Supply Schedules Program FAR Subpart 8.4 Restructuring Additional Competition Requirements Additional Requirements When Limiting Sources Impacts on Indefinite-Delivery Contracts Additional Competition Requirements Additional Requirements When Limiting Sources

3. 3  Call for Action:  Executive Office of the President Memoranda  GAO reviews  FY10 Compliance Survey  SARA Panel recommendation  Duncan Hunter National Defense Authorization Act - FY09 Section 863 oEnhances competition under multiple-award contracts oIncreases transparency when limiting sources  Regulatory Changes:  FAR Case 2007-012 oAffected FAR Parts: 5, 8, 16, 18, 38 Call for Action: Executive Office of the President Memoranda GAO reviews FY10 Compliance Survey SARA Panel recommendation Duncan Hunter National Defense Authorization Act - FY09 Section 863 o Enhances competition under multiple-award contracts o Increases transparency when limiting sources Regulatory Changes: FAR Case 2007-012 o Affected FAR Parts: 5, 8, 16, 18, 38

4. 4  Rules for competing Schedule task and delivery orders reflect DFARS 208.405-70  Removed the maximum order threshold and replaced with the simplified acquisition threshold  Clarified procedures for establishing and ordering from Schedule BPAs to standalone section and enhanced competition requirements  Clarified protests in FSS Program FAR Subpart 8.4 Restructuring Rules for competing Schedule task and delivery orders reflect DFARS 208.405-70 Removed the maximum order threshold and replaced with the simplified acquisition threshold Clarified procedures for establishing and ordering from Schedule BPAs to standalone section and enhanced competition requirements Clarified protests in FSS Program Impacts on Federal Supply Schedules

5. 5 Old Competition Requirements for Orders w/out SOW (FAR 8.405-1)  Seek price reduction  Survey ≥ 3 contractors  Select best value quote  Survey ≥ 3 contractors  Determine if a price reduction should be sought  Select best value quote  Place order with contractor  Distribute orders among contractors Maximum order threshold Micro- purchase threshold Seek price reduction Survey ≥ 3 contractors Select best value quote Survey ≥ 3 contractors Determine if a price reduction should be sought Select best value quote Place order with contractor Distribute orders among contractors Estimated Dollar Value Impacts on Federal Supply Schedules

6. 6 New Competition Requirements for Orders w/out SOW (FAR 8.405-1)  Develop RFQ  Receive ≥ 3 quotes, use eBuy, or follow procedure for limiting sources  Seek price reduction  May not place orders orally  Select best value quote  Survey ≥ 3 contractors or follow procedures for limiting sources  Determine if a price reduction should be sought  Select best value quote  Place order with contractor  Distribute orders among contractors Simplified Acquisition Threshold Micro- purchase threshold Develop RFQ Receive ≥ 3 quotes, use eBuy, or follow procedure for limiting sources Seek price reduction May not place orders orally Select best value quote Survey ≥ 3 contractors or follow procedures for limiting sources Determine if a price reduction should be sought Select best value quote Place order with contractor Distribute orders among contractors Estimated Dollar Value Impacts on Federal Supply Schedules

7. 7 Old Competition Requirements for Orders with SOW (FAR 8.405-2)  Seek price reduction  Establish evaluation criteria  Issue RFQ to ≥ 3 contractors  Select best value quote  Establish evaluation criteria  Issue RFQ to ≥ 3 contractors  Select best value quote  Place order with contractor  Distribute orders among contractors Maximum order threshold Micro- purchase threshold Seek price reduction Establish evaluation criteria Issue RFQ to ≥ 3 contractors Select best value quote Establish evaluation criteria Issue RFQ to ≥ 3 contractors Select best value quote Place order with contractor Distribute orders among contractors Estimated Dollar Value Impacts on Federal Supply Schedules Post Award: Provide timely notification to unsuccessful offerors.

8. 8 New Competition Requirements for Orders with SOW (FAR 8.405-2)  Create SOW and evaluation criteria  Receive ≥ 3 quotes, use eBuy, or follow procedure for limiting sources  Seek price reduction  Select best value quote  May not place orders orally  Create SOW and evaluation criteria  Issue RFQ to ≥ 3 contractors, or follow procedures for limiting sources  Distribute orders among contractors  Select best value quote  Place order with contractor  Distribute orders among contractors Simplified Acquisition Threshold Micro- purchase threshold Create SOW and evaluation criteria Receive ≥ 3 quotes, use eBuy, or follow procedure for limiting sources Seek price reduction Select best value quote May not place orders orally Create SOW and evaluation criteria Issue RFQ to ≥ 3 contractors, or follow procedures for limiting sources Distribute orders among contractors Select best value quote Place order with contractor Distribute orders among contractors Estimated Dollar Value Impacts on Federal Supply Schedules Post Award: Provide timely notification to unsuccessful offerors.

9. 9  Schedule contracts considered  Contractor from which supply/service was purchased  Description of supply/service purchased  Amount paid Old Documentation Requirements for Orders w/out SOW (FAR 8.405-1(e)) Schedule contracts considered Contractor from which supply/service was purchased Description of supply/service purchased Amount paid Impacts on Federal Supply Schedules

10. 10  Schedule contracts considered  Contractor from which supply/service was purchased  Description of supply/service purchased  Amount paid  If order exceeds SAT, evidence of compliance with ordering procedures (8.405-1(d))  Basis for the award decision New Documentation Requirements for Orders w/out SOW (FAR 8.405-1(g)) Schedule contracts considered Contractor from which supply/service was purchased Description of supply/service purchased Amount paid If order exceeds SAT, evidence of compliance with ordering procedures (8.405-1(d)) Basis for the award decision Impacts on Federal Supply Schedules

11. 11  Schedule contracts considered  Contractor from which supply/service was purchased  Description of supply/service purchased  Amount paid  Evaluation methodology used in selecting the contractor  Rationale for any tradeoffs  Price reasonableness determination (level of effort, labor mix, total price, etc)  The rationale for using other than:  A firm-fixed price order or  A performance-based order Old Documentation Requirements for Orders With SOW (FAR 8.405-2(e)) Schedule contracts considered Contractor from which supply/service was purchased Description of supply/service purchased Amount paid Evaluation methodology used in selecting the contractor Rationale for any tradeoffs Price reasonableness determination (level of effort, labor mix, total price, etc) The rationale for using other than: o A firm-fixed price order or o A performance-based order Impacts on Federal Supply Schedules

12. 12  Schedule contracts considered  Contractor from which supply/service was purchased  Description of supply/service purchased  Amount paid  Evaluation methodology used in selecting the contractor  Rationale for any tradeoffs  Price reasonableness determination (level of effort, labor mix, total price, etc)  The rationale for using other than:  A firm-fixed price order; or  A performance-based order  If order exceeds SAT, evidence of compliance with ordering procedures (8.405-2(c)) New Documentation Requirements for Orders With SOW (FAR 8.405-2(e)) Schedule contracts considered Contractor from which supply/service was purchased Description of supply/service purchased Amount paid Evaluation methodology used in selecting the contractor Rationale for any tradeoffs Price reasonableness determination (level of effort, labor mix, total price, etc) The rationale for using other than: o A firm-fixed price order; or o A performance-based order If order exceeds SAT, evidence of compliance with ordering procedures (8.405-2(c)) Impacts on Federal Supply Schedules

13. 13  Considerations for Single-Award vs. Multiple-Award BPAs:  Scope and complexity of requirement(s)  Need to periodically compare multiple technical approaches or prices  Administrative costs of BPAs  Technical qualifications of schedule contractor(s)  Procedures for establishing BPA(s) follow 8.405-1 or 8.405-2  Must address ordering frequency, invoicing, discounts, requirements, delivery locations, and time  Specify ordering procedures for multiple-award BPAs  Allows multi-agency BPAs when agencies and their requirements can be defined at the time of establishment Old Procedures for Establishing Schedule BPAs (FAR 8.405-3(a)) Considerations for Single-Award vs. Multiple-Award BPAs: o Scope and complexity of requirement(s) o Need to periodically compare multiple technical approaches or prices o Administrative costs of BPAs o Technical qualifications of schedule contractor(s) Procedures for establishing BPA(s) follow 8.405-1 or 8.405-2 Must address ordering frequency, invoicing, discounts, requirements, delivery locations, and time Specify ordering procedures for multiple-award BPAs Allows multi-agency BPAs when agencies and their requirements can be defined at the time of establishment Impacts on Federal Supply Schedules

14. 14  Preference for Multiple-Award over Single-Award  Considerations for BPA establishment:  Scope and complexity of requirement(s)  Benefits of on-going competition and need to periodically compare multiple technical approaches or prices  Administrative costs of BPAs  Technical qualifications of schedule contractor(s)  Must address ordering frequency, invoicing, discounts, requirements, delivery locations, and time  Ordering procedures for multiple-award BPAs must be in accordance with 8.405-3(c)(2)  Allows multi-agency BPAs when agencies and their requirements can be defined at the time of establishment New Procedures for Establishing Schedule BPAs (FAR 8.405-3(a)) Preference for Multiple-Award over Single-Award Considerations for BPA establishment: o Scope and complexity of requirement(s) o Benefits of on-going competition and need to periodically compare multiple technical approaches or prices o Administrative costs of BPAs o Technical qualifications of schedule contractor(s) Must address ordering frequency, invoicing, discounts, requirements, delivery locations, and time Ordering procedures for multiple-award BPAs must be in accordance with 8.405-3(c)(2) Allows multi-agency BPAs when agencies and their requirements can be defined at the time of establishment Impacts on Federal Supply Schedules

15. 15  Restrictions on Single-award BPAs  If estimated over $103 million, must follow procedures for limiting sources AND Head of Agency must determine, in writing that one of the following conditions applies (may be combined with limited source justification): o The orders expected under the BPA are so integrally related that only a single source can reasonably perform the work o The BPA provides only for firm-fixed priced orders for products with unit prices established in the BPA or services with prices established in the BPA for specific tasks to be performed o Only one source is qualified and capable of performing the work at a reasonable price to the government o It is necessary in the public interest to award the BPA to a single source for exceptional circumstances.  Limits period of performance to one year base with the possibility of four one-year options  Annual reviews require approval by the ordering activities competition advocate New Procedures for Establishing Schedule BPAs (continued) (FAR 8.405-3(a)) Restrictions on Single-award BPAs If estimated over $103 million, must follow procedures for limiting sources AND Head of Agency must determine, in writing that one of the following conditions applies (may be combined with limited source justification): o The orders expected under the BPA are so integrally related that only a single source can reasonably perform the work o The BPA provides only for firm-fixed priced orders for products with unit prices established in the BPA or services with prices established in the BPA for specific tasks to be performed o Only one source is qualified and capable of performing the work at a reasonable price to the government o It is necessary in the public interest to award the BPA to a single source for exceptional circumstances. Limits period of performance to one year base with the possibility of four one-year options Annual reviews require approval by the ordering activities competition advocate Impacts on Federal Supply Schedules

16. 16  Minimum documentation:  Schedule contracts considered  Contractor from which supply/service was purchased  Description of supply/service purchased  Price  Required justification for a limited source BPA, if applicable  Determination for a single award BPA exceeding $103 million, if applicable  Documentation supporting decision to establish multiple/single award BPA  Evidence of compliance with competitively awarded BPAs, if applicable  Basis for award decision that includes: o Evaluation methodology o Rationale for any tradeoffs o Price reasonableness determination for services requiring a statement of work. New Procedures for Establishing Schedule BPAs (continued) (FAR 8.405-3(a)) Minimum documentation: Schedule contracts considered Contractor from which supply/service was purchased Description of supply/service purchased Price Required justification for a limited source BPA, if applicable Determination for a single award BPA exceeding $103 million, if applicable Documentation supporting decision to establish multiple/single award BPA Evidence of compliance with competitively awarded BPAs, if applicable Basis for award decision that includes: o Evaluation methodology o Rationale for any tradeoffs o Price reasonableness determination for services requiring a statement of work. Impacts on Federal Supply Schedules

17. 17 Old Competition Requirements for Establishing Schedule BPAs w/out SOW (FAR 8.405-1)  Seek price reduction  Survey ≥ 3 contractors  Select best value quote  Survey ≥ 3 contractors  Determine if a price reduction should be sought  Select best value quote  Place order with contractor  Distribute orders among contractors Maximum order threshold Micro- purchase threshold Seek price reduction Survey ≥ 3 contractors Select best value quote Survey ≥ 3 contractors Determine if a price reduction should be sought Select best value quote Place order with contractor Distribute orders among contractors Estimated Dollar Value Impacts on Federal Supply Schedules

18. 18 New Competition Requirements for Establishing Schedule BPAs w/o SOW (FAR 8.405-3(b)(1))  Create RFQ with supply/services description and evaluation criteria  Receive ≥ 3 quotes, use eBuy, or follow procedure for limiting sources  Seek price reduction  Evaluate all quotes  Select best value quote  Survey ≥ 3 contractors, use eBuy, or follow procedure for limiting sources  Establish BPA with contractor that offers best value Simplified Acquisition Threshold Create RFQ with supply/services description and evaluation criteria Receive ≥ 3 quotes, use eBuy, or follow procedure for limiting sources Seek price reduction Evaluate all quotes Select best value quote Survey ≥ 3 contractors, use eBuy, or follow procedure for limiting sources Establish BPA with contractor that offers best value Estimated Dollar Value Impacts on Federal Supply Schedules Post Award: Provide timely notification to unsuccessful offerors.

19. 19 Old Competition Requirements for Establishing Schedule BPAs with SOW (FAR 8.405-2)  Seek price reduction  Establish evaluation criteria  Issue RFQ to ≥ 3 contractors  Select best value quote  Establish evaluation criteria  Issue RFQ to ≥ 3 contractors  Distribute orders among contractors  Select best value quote  Place order with contractor  Distribute orders among contractors Maximum order threshold Micro- purchase threshold Seek price reduction Establish evaluation criteria Issue RFQ to ≥ 3 contractors Select best value quote Establish evaluation criteria Issue RFQ to ≥ 3 contractors Distribute orders among contractors Select best value quote Place order with contractor Distribute orders among contractors Estimated Dollar Value Impacts on Federal Supply Schedules Post Award: Provide timely notification to unsuccessful offerors.

20. 20 New Competition Requirements for Establishing Schedule BPAs with SOW (FAR 8.405-3(b)(2))  Create SOW and evaluation criteria  Post RFQ to eBuy, receive ≥ 3 quotes, or follow procedure for limiting sources  If < 3 quotes received, document file with: o Determination that no other contractors can fulfill requirement; and o Efforts to obtain quotes  Seek price reduction  Evaluate all quotes  Select best value quote  Issue RFQ to ≥ 3 contractors, use eBuy, or follow procedure for limiting sources  Establish BPA with contractor that offers best value Simplified Acquisition Threshold Create SOW and evaluation criteria Post RFQ to eBuy, receive ≥ 3 quotes, or follow procedure for limiting sources If < 3 quotes received, document file with: Determination that no other contractors can fulfill requirement; and Efforts to obtain quotes Seek price reduction Evaluate all quotes Select best value quote Issue RFQ to ≥ 3 contractors, use eBuy, or follow procedure for limiting sources Establish BPA with contractor that offers best value Estimated Dollar Value Impacts on Federal Supply Schedules Post Award: Provide timely notification to unsuccessful offerors.

21. 21  Single Award BPA: Place order directly when the need for supply/service arises  Multiple Award BPAs: Discussed separately  BPAs for hourly rate services:  Develop SOW  Specify a price for the performance of the tasks identified in the SOW Old Procedures for Ordering from Schedule BPAs (FAR 8.405-3(a)) Single Award BPA: Place order directly when the need for supply/service arises Multiple Award BPAs: Discussed separately BPAs for hourly rate services: o Develop SOW o Specify a price for the performance of the tasks identified in the SOW Impacts on Federal Supply Schedules

22. 22  Single Award BPA: Place order directly when the need for supply/service arises  Multiple Award BPAs: Discussed separately  BPAs for hourly rate services:  Develop SOW  Place firm-fixed-price orders to the maximum extent practicable  Specify a price for the performance of the tasks identified in the SOW New Procedures for Ordering from Schedule BPAs (FAR 8.405-3(c)) Single Award BPA: Place order directly when the need for supply/service arises Multiple Award BPAs: Discussed separately BPAs for hourly rate services: o Develop SOW o Place firm-fixed-price orders to the maximum extent practicable o Specify a price for the performance of the tasks identified in the SOW Impacts on Federal Supply Schedules

23. 23 Old Procedures for Ordering from Multiple-Award Schedule BPAs (FAR 8.405-3(a))  Send requirement, or SOW and evaluation criteria, to appropriate number of BPA holders, as established in BPA ordering procedures  Evaluate responses received  Make a best value determination  Place order with BPA holder that represents best value  Place order with contractor  Distribute orders among contractors Micro- purchase threshold Send requirement, or SOW and evaluation criteria, to appropriate number of BPA holders, as established in BPA ordering procedures Evaluate responses received Make a best value determination Place order with BPA holder that represents best value Place order with contractor Distribute orders among contractors Estimated Dollar Value Impacts on Federal Supply Schedules

24. 24 New Procedures for Ordering from Multiple-Award Schedule BPAs (FAR 8.405-3(c))  Issue RFQ to all eligible BPA holders, or follow procedure for limiting sources  Select best value quote  Document best value determination and evidence of compliance with ordering procedures  Provide fair opportunity to all BPA holders, or document reasons for restricting consideration  Select best value quote  Place order with contractor  Distribute orders among contractors Simplified Acquisition Threshold Micro- purchase threshold Issue RFQ to all eligible BPA holders, or follow procedure for limiting sources Select best value quote Document best value determination and evidence of compliance with ordering procedures Provide fair opportunity to all BPA holders, or document reasons for restricting consideration Select best value quote Place order with contractor Distribute orders among contractors Estimated Dollar Value Impacts on Federal Supply Schedules

25. 25  BPAs generally should not exceed five years in length, but may do so to meet program requirements. Contractors may be awarded BPAs that extend beyond the current term of their GSA Schedule contract, so long as there are option periods in their GSA Schedule contract that, if exercised, will cover the BPA’s period of performance. Old Guidelines on Duration Schedule BPAs (FAR 8.405-3(c)) BPAs generally should not exceed five years in length, but may do so to meet program requirements. Contractors may be awarded BPAs that extend beyond the current term of their GSA Schedule contract, so long as there are option periods in their GSA Schedule contract that, if exercised, will cover the BPA’s period of performance. Impacts on Federal Supply Schedules

26. 26  Multiple-award BPAs generally should not exceed five years in length, but may do so to meet program requirements.  A single-award BPA shall not exceed one year [base]. It may have up to four one-year options. See paragraph (e) for requirements associated with option exercise.  Contractors may be awarded BPAs that extend beyond the current term of their GSA Schedule contract, so long as there are option periods in their GSA Schedule contract that, if exercised, will cover the BPA’s period of performance. New Guidelines on Duration Schedule BPAs (FAR 8.405-3(d)) Multiple-award BPAs generally should not exceed five years in length, but may do so to meet program requirements. A single-award BPA shall not exceed one year [base]. It may have up to four one-year options. See paragraph (e) for requirements associated with option exercise. Contractors may be awarded BPAs that extend beyond the current term of their GSA Schedule contract, so long as there are option periods in their GSA Schedule contract that, if exercised, will cover the BPA’s period of performance. Impacts on Federal Supply Schedules

27. 27  Conduct and document annual review to determine whether:  The schedule contract is still in effect  The BPA still represents the best value  Estimated quantities/amounts have been exceeded and additional price reductions can be obtained Old Guidelines on Review of Schedule BPAs (FAR 8.405-3(d)) Conduct and document annual review to determine whether: o The schedule contract is still in effect o The BPA still represents the best value o Estimated quantities/amounts have been exceeded and additional price reductions can be obtained Impacts on Federal Supply Schedules

28. 28  Conduct and document annual review to determine whether:  The schedule contract is still in effect  The BPA still represents the best value  Estimated quantities/amounts have been exceeded and additional price reductions can be obtained  If a single-award BPA is established, the annual determination must be approved by the Competition Advocate prior to the exercise of an option New Guidelines on Review of Schedule BPAs (FAR 8.405-3(d)) Conduct and document annual review to determine whether: o The schedule contract is still in effect o The BPA still represents the best value o Estimated quantities/amounts have been exceeded and additional price reductions can be obtained If a single-award BPA is established, the annual determination must be approved by the Competition Advocate prior to the exercise of an option Impacts on Federal Supply Schedules

29. 29 Old Posting Requirements when Limiting Sources (FAR 8.405-6(d))  If limiting to one manufacturer (brand name), post limited source justification to E-Buy  If limiting to one manufacturer (brand name), post circumstances for limiting competition to E-Buy  No posting requirements  If limiting to one manufacturer (brand name), document circumstances for limiting competition  None Micro- purchase Threshold No posting requirements If limiting to one manufacturer (brand name), document circumstances for limiting competition None Estimated Dollar Value Impacts on Federal Supply Schedules Simplified acquisition threshold $25,000 If limiting to one manufacturer (brand name), post circumstances for limiting competition to E-Buy If limiting to one manufacturer (brand name), post limited source justification to E-Buy

30. 30 New Posting Requirements when Limiting Sources (FAR 8.405-6(d))  Within 14 days of award synopsize (FAR 5.301) and post the justification to FBO (for 30 days) and agency website (or link)  If limiting to one manufacturer (brand name), post limited source justification to E-Buy  If limiting to one manufacturer (brand name), post circumstances for limiting competition to E-Buy  If limiting to one manufacturer (brand name), document circumstances for limiting competition  None Micro- purchase Threshold If limiting to one manufacturer (brand name), document circumstances for limiting competition None Estimated Dollar Value Impacts on Federal Supply Schedules Simplified acquisition threshold $25,000 If limiting to one manufacturer (brand name), post circumstances for limiting competition to E-Buy Within 14 days of award synopsize (FAR 5.301) and post the justification to FBO (for 30 days) and agency website (or link) If limiting to one manufacturer (brand name), post limited source justification to E-Buy

31. 31 Approvals of Justifications When Limiting Sources (FAR 8.405-6(d)) Estimated Value of Order Approval Required Exceeds the Simplified Acquisition Threshold, but does not exceed $650,000 Ordering activity CO Exceeds $650,000, but does not exceed $12.5 million Ordering activity competition advocate Exceeds $12.5 million, but does not exceed $62.5 million (or for DOD, NASA, and Coast Guard not exceeding $85.5 million) Head of the procuring activity placing the order or designee Exceeds $62.5 million (or for DOD, NASA, and Coast Guard, exceeding $85.5 million) Senior Procurement Executive of the agency placing the order Estimated Value of OrderApproval Required Exceeds the Simplified Acquisition Threshold, but does not exceed $650,000 Ordering activity CO Exceeds $650,000, but does not exceed $12.5 million Ordering activity competition advocate Exceeds $12.5 million, but does not exceed $62.5 million (or for DOD, NASA, and Coast Guard not exceeding $85.5 million) Head of the procuring activity placing the order or designee Exceeds $62.5 million (or for DOD, NASA, and Coast Guard, exceeding $85.5 million) Senior Procurement Executive of the agency placing the order Impacts on Federal Supply Schedules

32. 32  GSA eBuy  The use of eBuy will ensure compliance with new requirements  Annual usage increasing 14.5%  Approximately $6.3 billion in estimated awards through eBuy in FY10  Average of three quotes received  Learn from DoD  www.ebuy.gsa.gov E-Solution  GSA eBuy  The use of eBuy will ensure compliance with new requirements  Annual usage increasing 14.5%  Approximately $6.3 billion in estimated awards through eBuy in FY10  Average of three quotes received  Learn from DoD  www.ebuy.gsa.gov Impacts on Federal Supply Schedules

33. 33 Old Competition Requirements for Indefinite-Delivery Contracts (FAR 16.505)  Provide all contract holders fair notice of intent to purchase, with description of goods/services and evaluation criteria, or document the basis for using an exception  Must provide fair opportunity to all contract holders, or document the basis for using an exception  Place order with contractor $5 million $3,000 Provide all contract holders fair notice of intent to purchase, with description of goods/services and evaluation criteria, or document the basis for using an exception Must provide fair opportunity to all contract holders, or document the basis for using an exception Place order with contractor Estimated Dollar Value Impacts on Indefinite-Delivery Contracts

34. 34 New Competition Requirements for Indefinite-Delivery Contracts (FAR 16.505)  Provide all contract holders fair notice of intent to purchase, with description of goods/services and evaluation criteria, or document the basis for using an exception, and allow all contract holders to submit an offer and be considered, or provide justification  Provide fair opportunity to all contract holders, or document the basis for using an exception  Place order with contractor Simplified Acquisition Threshold $3,000 Provide all contract holders fair notice of intent to purchase, with description of goods/services and evaluation criteria, or document the basis for using an exception, and allow all contract holders to submit an offer and be considered, or provide justification Provide fair opportunity to all contract holders, or document the basis for using an exception Place order with contractor Estimated Dollar Value Impacts on Indefinite-Delivery Contracts

35. 35  Urgent need  Only one awardee is capable  Logical follow-on, provided all awardees were given a fair opportunity to be considered for original order  Satisfy a minimum guarantee Old Exceptions to Fair Opportunity (FAR 16.505(b)(2))  Urgent need  Only one awardee is capable  Logical follow-on, provided all awardees were given a fair opportunity to be considered for original order  Satisfy a minimum guarantee Impacts on Indefinite-Delivery Contracts

36. 36  Urgent need  Only one awardee is capable  Logical follow-on, provided all awardees were given a fair opportunity to be considered for original order  Satisfy a minimum guarantee  Authorized or required by statute New Exceptions to Fair Opportunity (FAR 16.505(b)(2))  Urgent need  Only one awardee is capable  Logical follow-on, provided all awardees were given a fair opportunity to be considered for original order  Satisfy a minimum guarantee  Authorized or required by statute Impacts on Indefinite-Delivery Contracts

37. 37  Orders exceeding the micro-purchase threshold, if fair notice not given:  Must document the basis for using an exception  If the CO uses the logical follow-on exception, rationale shall describe why the relationship between the initial order and the follow-on is logical (e.g., scope, period of performance, value)  Orders exceeding the SAT, if fair notice not given:  CO must prepare a written justification  Within 14 days after placing order, post to FBO and agency website for 30 days Additional Requirements When Limiting Sources (FAR Subparts 5.3 and 16.5)  Orders exceeding the micro-purchase threshold, if fair notice not given:  Must document the basis for using an exception  If the CO uses the logical follow-on exception, rationale shall describe why the relationship between the initial order and the follow-on is logical (e.g., scope, period of performance, value)  Orders exceeding the SAT, if fair notice not given:  CO must prepare a written justification  Within 14 days after placing order, post to FBO and agency website for 30 days Impacts on Indefinite-Delivery Contracts

38. 38  Identify document as “Justification for an Exception to Fair Opportunity”  Identify the agency and contracting activity  Include nature and/or description of the action being approved  Describe supplies/services required to meet agency’s needs (include estimated value)  Identify the exception to fair opportunity and supporting rationale  Provide determination by the CO that the anticipated cost to the Government will be fair and reasonable  Include any other facts supporting the justification  Include a statement of the actions, if any, the agency may take to remove or overcome any barriers that led to the exception to fair opportunity before any subsequent acquisition for the supplies or services is made  Include CO’s certification that the justification is accurate and complete to the best of their knowledge and belief  Include evidence of any supporting data from the technical or requirements personnel that formed the basis for the exception, and ensure it has been certified as complete and accurate by the technical or requirements personnel  Provide a written determination by the approving official that the exception applies to the order Content: Justifications When Limiting Sources (FAR 16.505)  Identify document as “Justification for an Exception to Fair Opportunity”  Identify the agency and contracting activity  Include nature and/or description of the action being approved  Describe supplies/services required to meet agency’s needs (include estimated value)  Identify the exception to fair opportunity and supporting rationale  Provide determination by the CO that the anticipated cost to the Government will be fair and reasonable  Include any other facts supporting the justification  Include a statement of the actions, if any, the agency may take to remove or overcome any barriers that led to the exception to fair opportunity before any subsequent acquisition for the supplies or services is made  Include CO’s certification that the justification is accurate and complete to the best of their knowledge and belief  Include evidence of any supporting data from the technical or requirements personnel that formed the basis for the exception, and ensure it has been certified as complete and accurate by the technical or requirements personnel  Provide a written determination by the approving official that the exception applies to the order Impacts on Indefinite-Delivery Contracts

39. 39 Approvals of Justifications When Limiting Sources (FAR 16.505) Estimated Value of Order Approval Required Exceeds the Simplified Acquisition Threshold, but does not exceed $650,000 Ordering activity CO Exceeds $650,000, but does not exceed $12.5 million Ordering activity competition advocate Exceeds $12.5 million, but does not exceed $62.5 million (or for DOD, NASA, and Coast Guard not exceeding $85.5 million) Head of the procuring activity placing the order or designee Exceeds $62.5 million (or for DOD, NASA, and Coast Guard, exceeding $85.5 million) Senior procurement executive of the agency placing the order Impacts on Indefinite-Delivery Contracts Estimated Value of OrderApproval Required Exceeds the Simplified Acquisition Threshold, but does not exceed $650,000 Ordering activity CO Exceeds $650,000, but does not exceed $12.5 million Ordering activity competition advocate Exceeds $12.5 million, but does not exceed $62.5 million (or for DOD, NASA, and Coast Guard not exceeding $85.5 million) Head of the procuring activity placing the order or designee Exceeds $62.5 million (or for DOD, NASA, and Coast Guard, exceeding $85.5 million) Senior procurement executive of the agency placing the order

40. 40 Thank You! Learn more at gsa.gov/schedules For the latest info visit gsa.gov/masnews Thank You! Learn more at gsa.gov/schedules For the latest info visit gsa.gov/masnews