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FAR PART 1.6
CONTRACTING AUTHORITY
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Elements of a Contract
- 1. Offer
- –A promise conditional on a return promise
- 2. Acceptance
- –Expression of assent to the terms of an offer
- 3. Consideration
- –Benefit to the promisor and detriment to the promisee
- 4. Mutual Assent
- –Meeting of the minds
- 5. Legal Subject Matter
- –Must be for a legal purpose
- 6. Competent Parties
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GENERAL CONTRACTING AUTHORITY
- FAR 1.602-1: GIVES CO THE AUTHORITY TO AWARD CONTRACTS AND BIND THE GOVERNMENT
- AFFARS 5301 AND AFMC MP5301 DELEGATES THIS AUTHORITY TO THE SENIOR CENTER CONTRACTING OFFICIAL (SCCO) - (OC-ALC/PK, MR. BOYLES OR MR. GASTON) (AFGLSC, COL GARST OR MR MAY)
- SCCO GRANTS THIS AUTHORITY TO INDIVIDUALS BY SIGNING A CO WARRANT
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HEAD OF CONTRACTING ACTIVITY
- Individual with the overall responsibility for managing the contracting activity
- HCA has authority to approve certain actions/strategies/documents related to contracts
- All delegable HCA authority given to SCCO
- Some HCA authority is non-delegable (i.e. authority to waive cost and pricing data)
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Program Executive Officer (PEO) vs. Other Contracting
- Two kinds of contracting in AFMC: PEO and Other Contracting
- PEO Contracting occurs for efforts assigned to a PEO
- When PEO is in effect, follow PEO procedures rather than Other Contracting procedures
- •PEO Examples
- Aircraft PEO (ASC/CC): B-2
- C2 and CS PEO (ESC/CC): E-3
- Weapons PEO (AAC/CC): Cruise Missiles
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Most OC-ALC work is Other Contracting -
Two types of Other Contracting
- Operational (PKO)
- Non-Operational (GKK, GLSC, PKE)
- –Operational and non-operational have different approval thresholds.
- Approval thresholds are generally lower dollar values for operational efforts
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AFPEO/CM is the PEO assigned for service acquisitions greater than $100M
- If acquisition is other contracting, for services, and greater than $100M, follow the AFPEO/CM rules
- If acquisition already falls within another PEO’s portfolio, then follow the rules for that PEO, not AFPEO/CM
- Example: A B-2 engineering services acquisition valued at $120M would belong to the PEO for Aircraft rather than the PEO for Services
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Part 7 – Acquisition Planning
Formal Acquisition Plans Thresholds
- •Other contracting, non-operational
- •R&D: > $10M
- •Production and Services: > $25M one year/$50M all years
- •Other contracting, operational
- • > $8M
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