PF 2020-06 Acquisition Guide Update to Chapters 15.3 and 71.1; Issuance of New Chapters 15.401, 15.404-41, 42.102, and 70.42.102

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DATE: November 8, 2019

SUBJECT: Acquisition Guide Update to Chapters 15.3 and 71.1; Issuance of New Chapters 15.401, 15.404-41, 42.102, and 70.42.102

TO: HCAs/Procurement Directors/Contracting Officers
FROM: Chief, Contract and Financial Assistance Policy Division, Office of Policy, Office of Acquisition Management

SUMMARY:  

Acquisition Guide Chapter 15.3 (formerly 15.1), Source Selection, has been updated to update references and streamline the presentation of concepts.

Acquisition Guide Chapter 15.401, Management Reserve and Contingency, is a new chapter.  It provides guidance to Contracting Officers (COs) on distinctions between the FAR term “contingency” and the program/project management terms “management reserve” and “contingency.”  It also provides guidance on the effect of those distinctions on contract cost/pricing actions.

Acquisition Guide Chapter 15.404-41, Provisional Payment of Fee, is a new chapter.  It provides guidance to COs on provisional payment of fee, which is a topic not explicitly addressed in the FAR.  It applies only to non-Management and Operating (M&O) contracts.

Acquisition Guide Chapter 42.102, Audit Management, is a new chapter.  It provides guidance to COs on planning audits for non-M&O contracts.

Acquisition Guide Chapter 70.42.102, Management and Operating Contractors’ Audit Coverage of Cost-Reimbursement Subcontracts, is a new chapter.  It provides guidance to COs on monitoring M&O contractors’ fulfillment of their contractual obligation to provide adequate audit coverage on cost-type subcontracts.

Acquisition Guide Chapter 71.1, Headquarters Business Clearance Review Process, has been updated to: (1) update the Business Clearance Review (BCR) process description to reflect current practice and use of a “murder board” style review comment resolution approach; (2) clarify that task orders issued against Indefinite Delivery/Indefinite Quantity contracts require BCR; (3) delete a requirement for submission of best procurement approach determination for Interagency Agreement BCRs; and (4) delete unnecessary language to improve document flow.

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Questions concerning this Policy Flash:
Sharon Archer
PROCUREMENT ANALYST, MA-611
Phone: 
(202) 287-1739