Contracting Officer Podcast Slides Knowledge & Insights From Contracting Officers

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

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

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?

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

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) )

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, HubZone, WOSB, 8(a), etc.) Capitalism requires it For the most part, common sense requires it

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

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!

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

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 $62.5M $88.5M is the next threshold Check the specific agency regulations to be sure

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)

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

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