AFD 070425 016

Source Development Program23 May 2006: 

Source Development Program 23 May 2006 OO-ALC/BC DSN: 777-9993

Horror Stories: 

Horror Stories '. . . JUST SOLVE THE DAMN PROBLEM !' Coffee Pot Toilet Seat Bolt Allen Wrench Stool Cap Claw Hammer

Congress Acts: 

Congress Acts 'The Congress finds that recent disclosures of excessive payments by the Department of Defense for replenishment parts have undermined confidence by the public and Congress in the defense procurement system.' PL 98-525 'Congressional Findings and Policy'

Point: 

Point 38% of the horror stories were sole-source buys Congress reinvented the wheel!!! Congress saw a 'stubborn resistance to competition . . . in the agencies.' House Report #1157, 98th Congress, 2nd Session, 1984

Key Laws: 

Key Laws PL 98-369 'Competition in Contracting Act' (CICA) PL 98-525 'Defense Procurement Reform Act PL 98-577 'Small Business and Federal Procurement Competition Enhancement Act' (reconciles the competition and small business laws)

CICA: 

CICA Mandates competition (seven exceptions) Justification and Approvals (Jandamp;A) Competition Advocate (CR) Market research Vendor Capability File Contractor protest

PL 98-525: 

PL 98-525 Source Qualification Statements (SQS) Periodically publish SQS Replenishment Parts Purchase or Borrow Program (RPPOB) Pay small business testing costs

Intent: 

Intent 'Competition is not a procurement procedure, but an object which a procedure is designed to attain.' Senate Report #50, 98th Congress, 2nd Session, 1984 'If Fandamp;OC is not possible on the instant buy, every feasible action to remove the impediments to Fandamp;OC on future buys should be initiated immediately.' Lt Gen Marc Reynolds, Vice Commander, USAF (letter to the ALCs, dated 23 Mar 85)

Summary: 

Summary This legislation was enacted '…to force us to identify, face, and change, wherever feasible, the circumstances that preclude competition.' Lt Gen Marc Reynolds, Vice Commander, USAF (letter to the ALCs, dated 13 Dec 84)

Source Development: 

Source Development Both a position and a process Designed to be a proactive, advocacy program 1984 – Established as a CR division (CRS: Heart of the new laws) 1992 – Transferred to BC (counsel large, small, and foreign firms) Symbiotic relationship with: (spares breakout program and SQS process)

Competition Advocate: 

Competition Advocate CR CRE CRS CRV LGMP LGVE BC PKPP

Spares Breakout Program: 

Spares Breakout Program

Acquisition Method and Suffix Codes: 

Acquisition Method and Suffix Codes AMC / AMSC (1-5) (A-Z) AMSC drives Source Development

AMSC “G”: 

AMSC 'G' Data available + Non-complex + Non-critical Full and open competition No prequalification No SQS No Approved Source List Source Development doesn’t play

Other AMSC: 

Other AMSC No data + Complex + Critical Other than full and open competition Yes prequalification Yes SQS Yes Approved Source List Source Development does plays

SQS: 

SQS AMSC dictates when produced: 'G' codes: Not applicable 'B' and 'C' codes: At time of screening Other codes: Upon demand Engineer prepares + PKPP (CR) coordinates Generic + Boilerplate + Flexible Not directed at a specific source Follows a set format Waiver clause allows tailoring :

Prequalification Methods: 

Prequalification Methods Reverse engineer, make and test (RPPOB) Same New Similar

F/A is not Prequalification: 

F/A is not Prequalification F/A After contract award 3 year time limit Prequalification Before contract award No time limit

Source Development: 

Source Development Promotes prequalification Requests SQS as necessary Processes source approval requests (active solicitation-buyer processes) Coordinates on source removal requests Manages the RPPOB program Participates in market research

SAR Alligators: 

SAR Alligators No firm can be denied the opportunity Evaluation must be prompt Reasons for denial must be specific Requirements must be the minimum that meets the need

Source Removal: 

Source Removal Manufacturing defects are not corrected Facility location or ownership is changed Manufacturer no longer produces Design change adds requirements Source is debarred FAR 9.207

Removal Alligators: 

Removal Alligators Recognize due process Open contract? MDRs or QDRs issued? Opportunity to resolve problem? Defacto debarment Prompt notification is required

RPPOB: 

RPPOB Sell or loan parts to domestic businesses for reverse engineering to enhance competition 'Best interest of the government' criteria includes Lack data Cost effective Adequate inventory Loan high dollar spares + Sell low dollar spares

Repair: 

Repair Late 1980’s, regulations expanded to include repair 2003 - Screening process drafted by Hill IPT (mirrors Spares Breakout Program) 2004 - Command wide process sought by AFMC (based on Hill’s draft)

Driving Regulations: 

Driving Regulations FAR Part 6 'Competition Requirements' FAR Part 9 'Contractor Qualification' AFI 64-201 'Small Business Programs' (Draft) AFI 63-301 'Air Force Competition and Commercial Advocacy' AFMC 'SAR-Qualification of Potential Sources Guide' DODD 4140-57 'Replenishment Parts Purchase or Borrow Program' AFMAN 23-110, Vol. III, Part One, Ch. 9G 'Loan/Lease of Non-Excess Personal Property' (Draft) AFI 23-105 'Spares Breakout Program'

Slide26: 

Source Development We Are Here To Help

Here To Help: 

Here To Help Small Business / Source Development OO-ALC/BC 801-777-9993/9994