Contracting Officer Podcast Slides Knowledge Insights From Contracting

Contracting Officer Podcast Slides Knowledge & Insights From Contracting Officers 1

Episode 017 What is a Justification & Approval (J&A)? Original Air Date: March 9, 2015 Hosts: Kevin Jans & Paul Schauer 2

Formatting notes • Hyperlinks: Blue font indicates hyperlinks – presentation must be in ‘Slide Show’ mode to activate the link • Red bold font indicates a point of emphasis • Green bold font indicates CO’s personal comment or perspective 3

Introduction • Purpose of this podcast: To explain and discuss Justification & Approvals (J&As) • Overview: • What is a J&A? • When and Why is a J&A used? • Who approves a J&A? 4

When does a J&A happen? • Acquisition Time Zones (from Podcast Episode 003) • Execution Time Zones (from Podcast Episode 084) • Requirements Zone • Kick Off Zone • Market Research Zone • Performance Zone • RFP Zone (proposal zone) • Re-compete Zone • Source Selection Zone • Wrap-up Zone 5

What is a Justification & Approval (J&A)? • Primary way that COs award contract without competition • J&As are for “other than Full and Open competition” (aka ‘Sole Source’) • Per FAR 6. 301(a): Contracting without providing for full and open (F&O) competition or F&O ‘after exclusion of sources’ is a violation of statute, unless permitted by one of the exceptions in FAR 6. 302. • There are seven “exceptions” to competition in FAR 6. 302 • CO must cite which one he/she is using (per FAR 6. 301(b) ) 6

Why Use a J&A? • Remember: MOST contracts are competed (about 70% or so) • Competition in Contracting Act (CICA) requires it • FAR 6. 1 Full and Open • FAR 6. 2 Full and Open “after exclusions” (aka “Set-asides” – SDVOSB, Hub. Zone, WOSB, 8(a), etc. ) • Capitalism requires it • For the most part, common sense requires it 7

When To Use a J&A? • One of the seven exceptions apply – by far the most used are: • FAR 6. 302 -1 -- Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements. • Patents, special capabilities. Example: Testing facility above 8, 000 ft • FAR 6. 302 -2 -- Unusual and Compelling Urgency. • 9/11, Afghanistan, Hurricane Katrina, Haiti earthquake, ISIS, etc. Example: Limited competition for supplies & equipment; short-term duration because “urgency” is now, not 6 months from now 8

Remaining Exceptions per FAR 6. 302 • 6. 302 -3 -- Industrial Mobilization; Engineering, Developmental, or Research Capability; or Expert Services. • 6. 302 -4 -- International Agreement • 6. 302 -5 -- Authorized or Required by Statute • 6. 302 -6 -- National Security. • 6. 302 -7 -- Public Interest (Agency head determines competition is not in the public interest in the particular acquisition; approval is at Secretary level) • Congress is also notified… Does NOT happen very often! 9

What is in a J&A? • Lots of stuff… Expect it to be a 3 – 10 pages • Who? What? Why? (explain authority) • How much $ (with explanation) • Market research completed? • CO’s certification that the J&A is accurate and complete • See FAR 6. 303 -2 for details 10

Who approves a J&A? • It depends on the agency • FAR allows CO to approve up to $650, 000 • Department Supplements (DFARS, AFFARS, etc. ) may permit the Chief of the Contracting office to delegate it to the CO, if their warrant allows for it. • In others, the Agency Head must approve over $62. 5 M • $88. 5 M is the next threshold • Check the specific agency regulations to be sure 11

Notables • FAR 6. 305 (a) - Agency shall make the justification publicly available within 14 days after contract award. • Cannot be based on lack of planning – FAR 6. 301(c)(1) • Cannot be based on expiring funds – FAR 6. 301(c)(2) 12

Summary • J&As permit the CO to limit competition, for appropriate situations and circumstances • Must be justified and approved at the proper level • Must be in accordance with FAR and Agency-specific guidelines • May be subject to intense scrutiny and/or political pressure 13

Contact us • We are on Linked. In, Twitter and Facebook • We also started the Government Contracting Network Group on Facebook. Join us there! • Send your topics to paul@Contractingofficerpodcast. com • For Community support, contact Shelley Hall at shelley. hall@skywayacquisition. com 14