Section III: PRE-SOLICITATION INFORMATION.

[Note: A business clearance documents compliance with law, executive orders, regulations, and policy (FAR 1.602-2). It will become the record showing good business judgment was exercised throughout the procurement process. The business clearance should document the principal elements of a negotiated agreement for the contract file (FAR 15.406-3).]

State the purpose of the business clearance memorandum, such as a request to enter negotiations, a request for Letter Contract approval, or a request for approval to award.

A.  Description of Supplies/Services. Include quantities, delivery schedules, options, and any other information to clearly explain what is included in the procurement. If appropriate, a chart format or attachment could be used to provide detail.

B.  Background.

1.  Procurement history.

a.  For weapons systems, describe previous development phases.

b.  Describe previous procurements for the same supplies or services.

c.  Describe any consolidation or bundling.

d.  For a modification to an existing contract, provide information on the existing contract's procurement history.

e.  For service contracts, state whether previous contracts were subject to Service Contract Act and/or Davis-Bacon Act labor requirements.

f.  Provide other relevant historical information, as needed.

2.  Acquisition environment.

a.  Explain whether this procurement is sealed bid, negotiated, two step formal advertising, two-phase design/build (FAR Subpart 36.3), or other.

b.  Specify whether it is a sole source, competitive, set-aside, definitization of a Letter Contract, change order, etc.

c.  Discuss any limitations set on which business concerns can propose or factors that might otherwise affect the Government's options to compete or negotiate the procurement. Such limitations would include Brand Name or Equal procurements (FAR 11.104), required sources of supplies/services (FAR Part 8), or unsolicited proposals (FAR 15.6).

d.  Describe any Requests for Information issued or Industry Days held as part of market research (FAR 10.002(b)(2)) and the industry response in terms of potential for competition.

C.  Independent Government Estimate (IGE) (FAR 36.203 for construction, FAR 36.605 for architect-engineer). Address the matters specified in USD(AT&L) DPAP's September 17, 2007 memo titled "Contracting Practices - Independent Government Estimates, Government Surveillance, and Contract Quality Assurance" as follows:

1.  Method used for IGE development.

2.  Assumptions made.

3.  Information estimating tools used.

4.  Source of information.

5.  Compare estimates for previous procurements with the prices paid.

D.  Type of Contract.

1.  Identify contract type and, for other than firm fixed price contracts, summarize rationale for selection (FAR 16.104) including consideration of technical, schedule, and cost risks.

2.  For development contracts, address compliance with approval requirements of DFARS 235.006.

3.  For incentive (FAR 16.4) or redeterminable (FAR 16.205/206) contracts, discuss provisions of the pricing structure. Describe Government defined share ratios, ceilings, economic price adjustments (DFARS 216.203), and any other aspects of the pricing structure.

4.  For award fee contracts (FAR 16.404, 16.405-2), summarize the award fee plan (or use attachments):

a.  Number and length of award fee periods projected or milestones to be used, estimated percentage of costs to be incurred during each period, and the projected percentage of award fee available during each period;

b.  Contractor performance evaluation categories and evaluation criteria (All CPAF contracts or contracts incorporating award fee provisions should include a category on cost and criterion for cost control.); and

c.  Ratings for performance evaluation criteria including definitions of ratings, scoring range, available award fee pool for each rating and any weighting factors.

5.  Cite justification for use of options in accordance with FAR 17.205.

E.  Source Selection Planning.

1.  For competitive acquisitions using the source selection process:

a.  Describe the source selection process, such as a Best Value Continuum (FAR 15.101) or Lowest Price Technically Acceptable (FAR 15.102).

b.  Describe the source selection organization, evaluation criteria, and basis for award as contained in the solicitation (Attachments may be used).

c.  If an evaluation of the extent of participation by small business and Historically Black Colleges and Universities and minority institutions is required by DFARS 215.304(c)(i), explain where it is covered in the evaluation criteria.

2.  For construction procurements using prequalification procedures, the clearance should address the factors at DFARS 236.272 and the results of the pre-qualification process.

3.  For two-phase design-build solicitations, the evaluation factors at FAR 36.303 should be addressed. For architect-engineer solicitations, the requirements of FAR 36.602 should be addressed.

F.  Special Provisions. Discuss any special provision not included in discussion under Type of Contract above, such as the following:

1.  Deviations from FAR, DFARS, NMCARS, or other DoD or Departmental regulations (DFARS Subpart 1.4/NMCARS 5201.403).

2.  Unusual controverted (disputed) cost clauses/re-opener clauses.

3.  Design to Cost (FAR 7.105(a)(3)(i)).

4.  Organizational Conflicts of Interest (FAR 9.504).

5.  Small business incentive (FAR 19.705-5(a)(4) and DFARS 19.203).

6.  Wage determinations required by the Service Contract Act (FAR 22.1003-1) or the Davis-Bacon Act (FAR 22.402 and 22.403-1).

7.  Source Restrictions, such as Buy American Act or 10 U.S.C 2533a or b (FAR Part 25/DFARS Part 225).

8.  Rights in technical data (FAR Part 27/DFARS Part 227).

9.  Unusual contract financing clauses, i.e., milestone billings, advance payments etc. (FAR Part 32/DFARS Part 232).

10.  Government Furnished Equipment/Material/Property (FAR Part 45/DFARS Part 245).

11.  Special Tooling and Test Equipment (FAR 45.306 & 307)

12.  Warranty provisions to include cost benefit analysis (DFARS 246.704) and approval.

13.  Security Classification (DD Form 254)

G.  Solicitation Review and Compliance.

1.  Discuss whether the solicitation is in agreement with the Acquisition Strategy and Acquisition Plan. If not, discuss the differences and the circumstances which necessitated the changes from the planning documents.

2.  Discuss whether a legal review of the solicitation was obtained prior to issuance.

H.  Synopsis. Give date of synopsis in Governmentwide Point of Entry (GPE). If procurement was synopsized in a location other than GPE, provide information.