Chapter 2 WHEN IS A JUSTIFICATION & APPROVAL REQUIRED?

10 USC 2304(c), as implemented by FAR 6, requires the use of full and open competition, unless permitted by one of seven statutory exceptions. If awarding a contract under "other than full and open competition" procedures, some form of written documentation is normally required.  Chapter 3 of this guide describes each of the seven statutory authorities for the use of "other than full and open competition" procedures.  Depending on the authority used, the specific form of written documentation will vary.  Examples include: Justification and Approval (J&A), Determinations and Findings (D&F), or an International Agreement Competitive Restrictions (IACR) document.

Written documentation may also be required if awarding a contract using full and open competition after exclusion of one or more sources. If you are excluding a class or classes of sources in order to conduct a small business set-aside, or an 8(a) acquisition, no written justification or determination is required. If you are excluding one or more sources for other reasons, such as to maintain or develop alternative sources of supplies or services, a D&F must be prepared by the contracting officer (CO) and approved as prescribed in AFFARS 5306.202.  Refer to FAR 6.2 and supplements for procedures and guidance if you are conducting a full and open competition after exclusion of sources.

Proposed modifications generally constitute new work when, a) an individual modification or the cumulative effect of previous modifications results in changes that were not fairly and reasonably included in the synopsis or notice that advised the public of the planned original procurement; or b) when proposed changes are not within the scope of the original contract award.  New work requires competition unless one of the seven exceptions to competition found in FAR 6.302 applies.  If an exception to competition applies for the new work, program officials must justify and seek approval for other than full and open competition, typically in a J&A.  

"Full & open competition" is specifically defined in the statute as well as in Chapter 5 of this guide. The existence of "competition" does not necessarily mean full and open competition exists. If only a limited number of sources are able to compete due to competitive barriers that are inherent in the government's requirement, a J&A may be required.  Even when full and open competition does not exist, the CO is required to "solicit offers from as many potential sources as is practicable under the circumstances" (FAR 6.301 (d)).  In addition, the existence of an approved J&A does not automatically allow the government to reject proposals from sources not identified in the J&A.  The government is obligated to consider any proposal received from a responsible source.

These requirements apply to all new contracts and modifications except:

1.  Acquisitions made under the simplified acquisition procedures of FAR 13;

2.  Contracts awarded under procedures expressly authorized by statute (other than those specifically addressed under the authority of 10 USC 2304(c)(5));

3.  Contract modifications that are within the scope and under the terms of an existing contract (e.g., changes clause actions, exercise of contract options when initially priced and evaluated under full and open competition, etc.);

4.  Orders placed under indefinite-quantity contracts when the contract was awarded under the procedures of FAR 6.1 or 6.2 and all responsible sources were realistically permitted to compete for the requirements in the contract or when the contract was awarded under FAR 6.3 and the contract's J&A adequately covered the requirements specified in the order.