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


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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