afac2004-0804

Air Force Acquisition Circular (AFAC) 2004-0804

04 AUG 2004

FOR ADDITIONAL INFORMATION CONTACT: SAF/AQCP, 1060 Air Force Pentagon, Washington, DC 20330-1060, (703) 588-7058.

Summary of Changes

Note: “*****” below indicates that text is omitted.

Red font which is underlined indicates language that is being added.

Red font which is crossed out indicates language that is being deleted.

AFAC Changes

Supplementary information about the change: Incorporates language from existing Air Force Guides as mandatory procedures.

(a) Mandatory Procedures (MP5332) will standardize procedures for processing specific contract financing actions.

(b) Mandatory Procedures (MP5350.303) will standardize procedures for processing requests for contract adjustments due to Extraordinary Contractual Actions.

SUBPART 5332.1 — NON-COMMERCIAL ITEM PURCHASE FINANCING

5332.100 Scope of Subpart.

See Mandatory Procedures at MP5332.1 for processing financial requests and reporting adverse developments in the financial health of a contractor.

SUBPART 5332.3 — LOAN GUARANTEES FOR DEFENSE PRODUCTION

5332.300 Scope of Subpart.

See Mandatory Procedures at MP5332.3 for processing applications for a guaranteed loan.

SUBPART 5332.4 — ADVANCE PAYMENTS

5332.400 Scope of Subpart.

See Mandatory Procedures at MP5332.4 for processing advance payment requests.

SUBPART 5332.5 — PROGRESS PAYMENTS BASED ON COSTS

5332.501-2 Unusual Progress Payments.

See Mandatory Procedures at MP5332.501-2 for processing unusual progress payments.

SUBPART 5332.6 — CONTRACT DEBTS

5332.600 Scope of Subpart.

See Mandatory Procedures at MP5332.6 for processing contract debts.

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5350.303 Contractor requests.

Follow the Mandatory Procedures at MP5350.303 for processing requests for contract adjustments due to Extraordinary Contractual Actions.

Supplementary information about the change: Incorporates language from existing Air Force Guides as informational guidance.

SUBPART 5308.7 — ACQUISITION FROM NONPROFIT AGENCIES EMPLOYING PEOPLE WHO ARE BLIND OR SEVERELY DISABLED

5308.705 Procedures.

See Informational Guidance at IG5308.705 for acquiring products and services under the Javits-Wagner-O'Day Act from Nonprofit Agencies employing people who are blind or severely disabled.

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5317.106 Procedures.

See Informational Guidance at IG5317.1 for general guidance on how to use Multi-year Contracting to acquire supplies and services.

5317.190 General.

(a) Before entering into any multi-year contract, the contracting officer shall review current statute and other Congressional language for potential restrictions. The Congressional language is that language in the respective Appropriations Act that applies to their specific multi-year contract. Congress addresses, by separate line item, any multiyear contract and any special considerations they have identified. The Contracting Officer, Program Manager, and Buyer should be aware of any special considerations Congress applies via the Appropriations Act.

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SUBPART 5317.5 — INTERAGENCY ACQUISITIONS UNDER THE ECONOMY ACT

5317.500 Scope of Subpart.

See Informational Guidance at IG5317.500 for general guidance on Economy Act acquisitions.

5317.503 Determinations and Findings (D&Fs) Requirements.

See Informational Guidance at IG5317.503 for general D&F guidance and a D&F template.

5317.504 Ordering Procedures.

See Informational Guidance at IG5317.504 for supplemental ordering procedures.

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SUBPART 5332.7 — CONTRACT FUNDING

5332.700 Scope of Subpart.

See Information Guidance at IG 5332.7 for general guidance on contract funding.

5332.702-90 New Start Validation.

Supplementary information about the change: This clause requires contractors to obtain CACs for and retrieve CACs from their contract and subcontract personnel. This accountability is necessary to ensure contractor personnel can be strongly identified during their affiliation with the Air Force. This strong identification is instrumental in granting physical and logical access privileges.

5342.490-2 Contract clause.

The contracting officer shall insert the clause substantially the same as the clause at 5352.242-9001, Common Access Cards (CACs) for Contractor Personnel, in solicitations and contracts that require contractor personnel to meet one or both of the following criteria:

(a) Require logical access to Department of Defense computer networks and systems in either the unclassified environment or the classified environment where authorized by governing security directives; and/or

(b) Perform work which requires the use of a CAC for installation entry control or physical

access to facilities and buildings.

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5352.242-9001 Common Access Cards (CACs) for Contractor Personnel.

As prescribed in 5342.490-2, insert a clause substantially the same as the following clause in solicitations and contracts:

COMMON ACCESS CARDS (CACs) FOR CONTRACTOR PERSONNEL (AUG 2004)

(a) For installation(s)/location(s) cited in the contract, contractors shall ensure Common Access Cards (CACs) are obtained by all contract or subcontract personnel who meet one or both of the following criteria:

(1) Require logical access to Department of Defense computer networks and systems in either:

(i) the unclassified environment; or

(ii) the classified environment where authorized by governing security directives.

(2) Perform work which requires the use of a CAC for installation entry control or physical access to facilities and buildings.

(b) Contractors and their personnel shall use the following procedures to obtain CACs:

(1) Contractors shall provide a listing of personnel authorized a CAC to the contracting officer. The contracting officer will provide a copy of the listing to the government representative in the local organization designated to authorize issuance of contractor CACs (i.e., “authorizing official”).

(2) Contractor personnel on the listing shall each complete and submit a DD Form 1172-2 or other authorized DoD electronic form to the authorizing official. The authorizing official will verify the applicant’s name against the contractor’s listing and return the DD Form 1172-2 to the contractor personnel.

(3) Contractor personnel will proceed to the nearest CAC issuance workstation (usually the local Military Personnel Flight (MPF) with the DD Form 1172-2 and appropriate documentation to support their identification and/or citizenship. The CAC issuance workstation will then issue the CAC.

(c) While visiting or performing work on installation(s)/location(s), contractor personnel shall wear or prominently display the CAC as required by the governing local policy.

(d) During the performance period of the contract, the contractor shall:

(1) Within 7 working days of any changes to the listing of the contract personnel authorized a CAC, provide an updated listing to the contracting officer who will provide the updated listing to the authorizing official;

(2) Return CACs in accordance with local policy/directives within 7 working days of a change in status for contractor personnel who no longer require logical or physical access;

(3) Return CACs in accordance with local policy/directives within 7 working days following a CACs expiration date; and

(4) Report lost or stolen CACs in accordance with local policy/directives.

(e) Within 7 working days following completion/termination of the contract, the contractor shall return all CACs issued to their personnel to the issuing office or the location specified by local policy/directives.

(f) Failure to comply with these requirements may result in withholding of final payment.

(End of clause)

Supplementary information about the change: None.

5349.402-3 Procedure for default.

(d) For all ACAT I, II, and III Programs, the contracting officer shall, upon issuance of the cure notice, immediately inform SAF/AQCK and forward a copy of the cure notice to SAF/AQCK. In addition to ACAT program notices, contracting officers shall notify SAF/AQCK of any other notices that could result in high-level Air Force interest.

(e)

(1) For all ACAT I, II , and III Programs, the contracting officer shall, upon issuance of the show cause notice, immediately inform SAF/AQCK and forward a copy of the show cause notice to SAF/AQCK. In addition to ACAT program notices, contracting officers shall notify SAF/AQCK of any other notices that could result in high-level Air Force interest.

(f) Prior to making a final decision concerning termination for default, the contracting officer shall forward the termination notice and the complete contract file to AFMCLO/JAB and follow the procedures in 5333.291(b).

(h) For termination notices related to ACAT I, II, and III Programs, the contracting officer shall, upon issuance of the termination notice, immediately inform SAF/AQCK and distribute a copy of the termination notice to SAF/AQCK. In addition to ACAT program notices, contracting officers shall notify SAF/AQCK of any other notices that could result in high-level Air Force interest.

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5349.403 Termination of Cost-Reimbursement Contracts for Default

(a) For all ACAT I, II, and III Programs, the contracting officer shall, upon issuance of the termination notice, immediately inform SAF/AQCK and forward a copy of the termination notice to SAF/AQCK. In addition to ACAT program notices, contracting officers shall notify SAF/AQCK of any other notices that could result in high-level Air Force interest.

Supplementary information about the change: None.

5307.104-92 Air Force procedures for Acquisition Plans (APs).

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(b) For acquisitions within the AFPEO/CM portfolio, see 5337.503-90:

(1) For acquisitions > $500M, except for information technology services acquisitions that will be approved by ASD(NII), USD(AT&L) has delegated acquisition plan approval authority to ASAF(A).

(2) For acquisitions between $100M and $500M, ASAF(A) has delegated acquisition plan approval authority to AFPEO/CM.

Supplementary information about the change: Ensures SAF/AQCK coordination on indemnification requests.

SUBPART 5350.4 — RESIDUAL POWERS

5350.403 Special Procedures for Unusually Hazardous or Nuclear Risks. (No Text)

5350.403-2 Action on Indemnification Requests.

Upon completion of all buying activity and/or MAJCOM coordinations, the contracting officer shall forward the indemnification request to SAF/AQCK for staffing to the SECAF.

Supplementary information about the change: Air Force Program Executive Officer for Services (AFPEO/SV) was changed to Air Force Program Executive Officer for Combat and Mission Support (AFPEO/CM) effective 1 Feb 04. Command, Control, Communications, and Intelligence (C3I) was changed to Networks and Information Integration (NII) effective 8 May 03.

5302.101 Definitions.

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“Milestone Decision Authority (MDA)” means the individual designated in accordance with criteria established by USD(AT&L), or by ASD(NII) for AIS acquisition programs, to approve entry of an acquisition program into the next phase of the acquisition process.

"Other contracting" means those efforts taken to support acquisition programs, maintain and repair fielded weapon systems, and support Air Force operations. The term includes, but is not limited to, contracts for local purchase and other operational support; replenishment spares; programmed depot maintenance; weapon system modifications which do not involve significant development; contractor logistics support; manpower and support; and science and technology (i.e., research, exploratory development or advanced development, and not intended for a system specific application (6.1, 6.2, or 6.3A funds)). This term does not include those efforts or acquisitions that have been assigned to AFPEO/CM.

Supplementary information about the change: The Program Executive Officer realignment eliminated the Designated Acquisition Commander effective 31 Mar 04.

5302.101 Definitions.

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5307.104 General procedures.

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(iii) Program managers/contracting officers shall submit SAMPs/IPSs/APs to the cognizant PEO action officer for PEO programs and acquisitions and the cognizant Program Element Monitor (PEM) for processing.

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5307.104-91 Air Force procedures for Single Acquisition Management Plans (SAMPs)/Commodity Acquisition Management Plans (CAMPs)/Integrated Program Summaries (IPSs).

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(b) Approval requirements.

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(7) For non-space related ACAT III programs, if a SAMP is prepared, the PEO is the SAMP approval authority.

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5307.104-92 Air Force procedures for Acquisition Plans (APs).

(a) For space related ACAT II programs and all ACAT III programs, if an acquisition plan is prepared in lieu of a SAMP/IPS, the PEO is the acquisition plan approval authority.